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NOVEMBER 1Q41 A. T . D O N H O W E , P re s id e n t D es M oines C. F. H A R R IS , V ice P re s id e n t G ladbrook N ew O fficers of the Iow a B an k e rs A sso c ia tio n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Should Bank Profits Be Limited to 6 % Pages 11 » i W ~¿r ~ é - f ~ i ' -v T - é - # ~-T j^ 5 < ¿> ->» ¿> § r -J > >> > -> » ^ ^ We have personalized the Merchants National Bank service in a manner which acids an important extra value for banks and hankers in the Middle West. The Merchants National Bank correspondent service has hut one goal— the thorough satisfaction of its clients. We invite your account. ACEDAR RAPIDS BANK CEDAI} RAPIDS SERVICING ALL IOWA* MERCHANTS fifi lili NATIONAL BANK “SSs fifí; (sj a?,yjii 3i'.!IJM er VS'Í !I/Tl.tw FO I m * OFFICERS J ames E. H amilton, Chairman S. E. Coquillette, President H. N. B oyson, Vice President Roy C. F olsom, Vice President Mark J. Myers, V. Pres. & Cashier George F. Miller, V. Pres. & Tr. Officer Marvin R. S elden, Vice President F red W. S mith , Vice President J ohn T. H amilton II, Vice President R. W. Manatt , Asst. Cashier L. W. B roulik, Asst. Cashier P eter B ailey, Asst. Cashier R. D. B rown, Asst. Cashier O. A. Kearney, Asst. Cashier S tanley J. Mohrbacher, Asst. Cashier E. B. ZbAn ek , Building Manager Cedar R apids Iow a Member Federal Deposit Insurance Corporation N o rth w e ste rn B an k er, p u b lish e d m o n th ly by th e D e P u y P u b lish in g C om pany, In c ., a t 527 7th S tre e t, D es M oines, Iow a. S u b sc rip tio n , 35c p e r copy, $3.00 p e r y e ar. E n te re d as seco n d -class m a tte r a t the D es M oines p o st office. C o p y rig h t, 1941. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 ☆ ☆ ☆ ☆ ☆ ☆ ☆ ☆ ☆ A constant contact with Iowa B usiness and A g ricu ltu re enables this i n s t i t u t i o n to provide an extrem ely broad and h e lp fu l c o r r e s p o n d e n t service. ^3ow a J ^ J ~ r te n (tL j d u e rn i? CENTRAL NATIONAL BANK Hill! T R U ST C O M P A N Y * Des Moines, Iowa MEMBER FEDERAL DEPOSIT I N S U R A N C E CORPORATI ON https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker November 1941 4 THE C H A S E NATIONAL BANK OF THE C I T Y OF NEW Y O R K Statem ent o f Condition, September 30, 1941 RESOURCES C a s h and D u e fr o m B a n k s ............................................................................. $1,328,312,062.98 U . S. G o v e r n m e n t O b l ig a t io n s , d ir e c t and f u l l y g u a r a n teed 1,339,079,397.32 S t a t e a n d M u n ic ip a l S e c u r i t i e s .............................................................. 147,777,770.45 6,016,200.00 190,199,465.15 773,035,984.63 38,157,976.03 6,949,255.23 S to c k of F ed era l R ese r v e B a n k .............................................................. O t h e r S e c u r i t i e s ............................................................................................ L o a n s , D is c o u n t s and B a n k e r s ’ A c c e p t a n c e s ............................... B a n k in g H o u s e s .................................................................................... O t h e r R ea l E s t a t e ...................................................................................... M o r t g a g e s .............................................................................................. C u s t o m e r s ’ A c c e p t a n c e L i a b i l i t y ........................................................ O t h e r As s e t s ......................................................................................... 8,829,843.13 6,161,164.97 12,279,459.93 $3,856,798,579.82 L IA B IL IT IE S C a p it a l F u n d s : C a p it a l S t o c k .................................................................. $100,270,000.00 S u r p l u s .......................................................................... U n d iv id e d P r o f i t s ................................................. 100,270,000.00 40,441,406.44 $ 240,981,406.44 R ese r v e fo r C o n t i n g e n c i e s .......................................................................... R e se r v e fo r T a x e s , I n t e r e s t , e t c .............................................................. 10,922,571.34 1,965,902.57 . 3,587,562,419.48 7,371,250.10 272,633.18 O t h e r L i a b i l i t i e s ............................................................................................ 7,722,396.71 D e p o s it s ............................................................................................................... A c c e p t a n c e s O u t s t a n d i n g .......................................................................... L ia b il it y as E n d o r ser on A c c e p t a n c e s and F o r e ig n B il l s . $3,856,798,579.82 U nited States Governm ent and other securities carried at $146,159,730.00 are pledged to secure public and trust deposits and for other purposes as required or perm itted by law. Member Federal Deposit Insurance Corporation Northwestern Banker Novem ber 19M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 The right fore arm of the Statue of Liberty arrived first in this country in 1876 for display in the Centennial Ex position at Phila delphia. It w as th e n —>• removed to Madison Square Park on Fifth Avenuein NewYork (extreme right in pic ture). It remained th e re until 1884 while funds were raised for the base of the Statue. The arm was returned to France for completion of the entire Statue which subsequently ar rived at Bedloe’s Island and was erected late in 1884. The raising of this symbol of liberty was considered quite an engineering feat in its day. Keeping its flame burning brightly to >i warm and encourage all lovers of freedom is the quiet determination of 130 million people. HROUGH T good times and bad since 1853 this institution has been providing sound insurance protection to American property owners. We believe this entitles us to the claim that we know something about good insurance. Of all the forms of insurance that serve the in dividual none can compare with the finest kind of insurance that will serve us all—United States Defense Bonds. For the safest investment in the world—for insurance that will help safeguard our liberty—Buy United States Defense Bonds. a THE HOM E N E W Y O R K Q The Home, through its agents and brokers, is America's leading insurance protector o f American Homes and the Homes o f American In d u stry FIRE • AUTOMOBILE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • MARINE INSURANCE SAFETY DEVICES th at have changed the habits of a nation I I k. . sag’ ; ' ___ , Some of the greatest inventions, though %..h widely used, have been relatively "un1 sung." Take the Safety Match. Few of us know when it was invented or by whom, yet this ingenious device has performed an inestimable service— saving count less lives and millions of dollars. » » In 1871, nineteen years after the Safety Match was invented, George La Monte gave America its first Safety Paper. » » Here, too, is a product which filled an urgent need and performed a great public service. Introduced at a time when the nation's banks were suffering serious losses through check raising. La Monte Safety Paper served so effectively to stabilize this essential phase ; .. L of banking service, that it soon became America's standard of protection for checks and other negoti able instruments. » » Today La Monte Safety Paper is used and endorsed by more than 75% of the na tion's leading banks and by outstanding corpora tions from coast to coast. » » And the ever-increasing popularity of this product has been, in no small part, due to the tireless research and experimentation pursued by its maker to keep pace with increasing demands for safety. » » Your Lithographer or Printer will gladly submit samples of La Monte Safety Papers and explain how you can have your own Trade Mark or individual design incorporated in the check-paper itself. w g a ld ijn GEOFtgE % A M O N T S gS ^O N https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ufley . '¿¡¡SU - m NOVEMBER n o rëw w e/ t e r n 19 4 1 FO R TY -SIX TH Y E A R NUMBER 652 Oldest Financial Journal West of the Mississippi River IN THIS ISSUE Editorials 8 A c ro ss th e D esk fro m th e P u b lish e r. CLIFFO R D DE PUY Publisher R A L P H W. M O O R H E A D Associate Publisher H EN R Y H. H A Y N E S Editor J. STUART D A V IS Associate Editor 527 Seventh Street, Des Moines, Iowa Telephone 4-8163 Feature Articles F ro n tisp ie c e ................................................. ................................................................................. 10 Should B an k P ro fits Be L im ited to 6 % ? ............................................................................. 11 N ew s a n d V iew s..................... ..................................................................... Clifford De P u y 12 S o u th D a k o ta — T w e n ty Y e a rs A h ead of th e P a r a d e ................. .M illa rd G. Scott 13 N e b ra sk a B a n k e rs in O m a h a ............................................................ ..................................... 14 P ic tu re s a t th e N e b ra sk a C o n v en tio n ................................................................................... 15 H ow O u r A u d itin g S y stem Im p ro v es B a n k O p e ra tio n ................... .E. E. W iemer 16 N ew s N o tes fro m N e b ra s k a ............................................ ...................... H enry H. Haynes 17 W hy W e R efu sed D e p o sits............................. .................................. ................. J. J. Krall 18 L eg al D e p a rtm e n t— C an A G ift o r T r u s t Be R evoked?.............................................. 21 Insurance C an Y o u r P ro s p e c t T ell You H ow M uch Is E n o u g h ? ................... L. P. Schwinger 23 H old A n n u a l A g en cy C onvention.......... ....... ..................................................................... 24 Bonds and Investments T he M o n th ’s M a rk e t M a n e u v e rs.................... .....................................James H. Clarke 25 NEW Y O R K O FFICE Frank P. Syms Vice President 505 Fifth Ave. Suite 1202 Telephone MUrray Hill 2-0326 M IN N E A P O L IS O FFICE Jos. A . Sarazen Associate Editor Telephone Hyland 0575 State Banking News M in n eso ta N ew s .................................................. ........................... ..... ..... .............. ........ .......... T w in C ity N ew s......... .................. ..................................................................................... S o u th D ak o ta N ew s............................................................................................... N o rth D a k o ta N ew s.................. N e b ra sk a N ew s ......................................................................................................................... O m ah a C le a rin g s ................................................................................................................ L incoln L ocals ......................................................... .......................... ................................. Io w a N ew s ...................................................... Io w a B a n k s E x cess R e se rv e s.................. ..................... ........ ................................ ...... Is Iow a L a n d B ein g B o u g h t o r S o ld ?.................. ....................................................... Io w a N ew s fro m H e re a n d T h e re ..................................................... J. A . Sarazen H e lp in g Boys to R aise B e tte r C a ttle ................................................... R. J. Meyer 31 33 35 37 39 41 43 47 47 52 57 59 The Directors’ Room A F e w S h o rt S to rie s to M ake You L a u g h .................... ....................................................... 66 MEMBER Audit Bureau of Circulations Financial Advertisers Association https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 Across the Desk Fromthe Publisher "Behind the Risino Sun" In these days when our diplomatic relations w ith Ja p a n are in such a turm oil, we have found a great deal of interest in reading Jam es R. Y o u n g ’s book “ B ehind the R ising S u n .” Mr. Young is a famous foreign correspondent who spent 13 years in Ja p a n and the Orient, and he knows most of the answers. lie believes th at Ja p a n is mostly bluff, and at the present time, of course, her governm ent is en tirely u nder the dom ination and control of Ger many. Some of the interesting points which Mr. Young makes in his book are th e se : 1. Japan has not a friend in the world. 2. Japan is whistling in the darkness of an international graveyard. 3. Not even Japan can depend on Germany’s commitments to Tokio. 4. Japan faces her greatest crisis. A business depression has set in. She is stagnated with goods she cannot export. 5. Peace with the leaders of Japan is now im possible. And on the business side of J a p a n ’s present dilemma are these interesting sidelights: 1. Golf balls cost $2.00 apiece. 2. Oranges cost $1.00 each. 3. The tourist trade of 7 to 10 million dollars annually has disappeared. 4. Every servant in your house is a spy. 5. Boycott of Japanese toys has destroyed a major industry. 6. Income taxes are paid on incomes of $200 a year and over, and taxes are up 35 per cent to 50 per cent. 7. Coal is $15.00 to $20.00 a to n /’ Northwestern Banker Novem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Incidentally, he also blam es E ng lan d for much of our c u rren t trouble because he belives th at, “ E n g lan d herself has been responsible for b rin g ing civilization today to the very verge of chaos.” B ut he also criticizes the U nited States, and says th at “ By our own action we have aided the J a p anese to cause the greatest misery and m igration in history, as 40,000,000 Chinese men, women and children have been forced to abandon th eir stores and homes and have been crucified, assaulted and beaten, because of the assistance we have given Ja p a n up to this tim e.” Mr. Young does not believe th at Ja p a n will ever conquer China, and th a t she is a tricky, trea ch erous nation, which is now very much on the spot. If Secretary of the T reasury H enry M orgenthau’s plan to Profit Limit lim it profits of corporations to Plan Unsound 6 per cent is enacted into a law after the first of the year, it will be the most u n sound and unwise legislation which has yet been passed by Congress. True, if every corporation could make 6 per cent profit every year, and have no bad years, th at might be satisfactory, but th at is not the case. In good years surpluses m ust be created for bad years. Perhaps Secretary M orgenthau h a sn ’t thought of th at adversity. Commenting on this plan, M ark A. Brown, vice president of the H a rris T rust and Savings Bank of Chicago, said re c e n tly : olX r e r C x€nt “ Although Morgenthau hasn’t told in detail how the scheme would be applied, it is obvious that any such ceiling would have drastic conse quences. 9 “ It fails to make allowance for the fact that few corporations over a period of years exceed a return of 6 per cent on invested capital. The reason ¡hat corporations are able to keep going is that they make up in good years the losses that they incur in bad years." In the meantime, while increasing taxes and urging the public to buy IT. S. Defense Bonds, it is time th at someone in W ashington took up the question of elim inating non-defense expenditures by our own government. As has been pointed out by m any prom inent economists, over $2,000,000,000 could be saved by elim inating unnecessary expenses at this time, but instead of th a t taxes are increased and no non defense item s seem to be elim inated. C ertainly such a program should be followed before any such plan as lim iting corporations to a 6 per cent re tu rn on th eir invested capital is even discussed. The Econom ists’ N ational Committee on M onetary Policy of New York has urged the repeal of inflationary statutes in order to help prevent inflation and also to make the price control program really work. This committee agrees in general with the recom m endations recently made by Secretary Morgenthau, but believes th at there should be a repeal of the greenback law of May 12, 1933, and of the laws authorizing the devaluation of our m etallic currency. This statem ent, which was signed by B enjam in M. A nderson, Jr., U niversity of California, and form erly economic adviser for the Chase N ational Bank, and 53 other economists, is as follow s: “ W e h ea rtily approve, in general, the recom m endations w ith respect to controlling a rise in prices m ade by S ecretary M orgenthau, but notice w ith reg ret, th a t he did not m ention the inflation ary n a tu re of some of the m onetary law s w ritte n into our statu tes during and since 1933, and the d esirability of repealing them . A ttem pts to re strict a rise in prices while an expansion of our supply of m oney continues under existing laws and policies constitute efforts to control effects while certain basic causal factors rem ain undis turbed. F urtherm ore, the possibility of using these laws in the fu tu re to expand the supply of our currency by the processes of inflation or de valu atio n point to the im portance of giving the public the reassurance involved in th eir repeal. “ W e therefore earnestly urge again the repeal of the greenback law of May 12, 1933, the law au thorizing bim etallism , the Silver P urchase A ct Urge Repedl of inflationary Statutes of 1934, the law providing for the purchase of domestic silver above the m ark et price, and the laws authorizing the devaluation of our m etallic currency. ’ ’ W e agree w ith this com m ittee th a t the inflation ary n atu re of some of these m onetary laws should be repealed in order to reassure the public th a t they will not be used at some fu tu re period in our national emergency. But has Congrss the desire, the initiation, or the courage to do so? P robably not unless th eir “ m a ste r’s voice” from the W hite House says “ y es,” which is very doubtful. Will Consumer Credit Control n n io Be Permanent/ Of course, no one can defin itely answ er w hether consum er credit control will be , , ,, perm anent by the govern ment, but there are some who th in k th a t it may. W. H arvey Kyle, m anager of the personal loan and finance d ep artm en t of the C leveland T rust Company, th in k s th at, “ The m ethod w hich the governm ent took to reg u late consum er cred it in dicates the desire on the p a rt of the governm ent to control it. The steady extension of m any forms of governm ent control durin g the past nine years is a w arning of w h at we m ay ex p ect.” However, in spite of this, Mr. Kyle believes th a t m ost everyone seems happy about the gen erosity of the re strictio n and, “ G enerally, they have m et w idespread approval. B ut, it m ay be a little too early to feel the im pact because the con trols are so arran g e d th a t a single tu rn of the vise will add considerably more fo rce.” R egulation W, which became effective Septem ber 1st, also bro u g h t the follow ing points clearly into focus, according to Mr. K yle: ‘‘First—It is a complicated piece of regulation; “ Second—The present restrictions are only the first step in a procedure that will undoubtedly in crease both the severity and scope of installment credit restrictions; “ Third—It is going to be a process that will affect the lower income brackets immediately and possibly the middle brackets a little later; “ Fourth—It will undoubtedly increase operat ing costs and hence tend to increase interest rates to the public.” W hatever the u ltim ate m ay be, let us hope th a t everything is done to prev en t perm anent govern m ent control of installm ent buying. Northwestern Banker Novem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 I f you w ould lik e ex tra co p ies of th is p ic tu re w e w ill be glad to send them to you w ith our co m p lim e n ts.— The N o rth w este rn B anker. Northwestern Banker Novem ber 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 Should Profits Be Limited to H E re c e n t suggestion by T reas u ry S ecretary H en ry M ongenthau th a t corporation profits d u rin g th e p re se n t n atio n al em ergency be lim ited to 6% an d th a t th e g o v ern m en t should ta k e all th e excess above 6% by ta x a tion, w hile it m ay have been m erely a tria l balloon to sound out public reac tion, has alread y h ad m any in te re stin g repercussions. I t affected th e stock m a rk e t ad v erse ly, an d b ro u g h t a storm of criticism from business in general, in addition to m an y an d v aried typ es of com m ent from political leaders. T he N or thw estern B anker is in te r ested in know ing how b a n k e rs view Mr. M o rg en th au ’s proposal, hence we have m ade a su rv ey on th is subject am ong m iddle w e ste rn b an k ers. On th e w hole, b a n k ers seem to oppose such a m easure, an d som e of th e ir com m e n t is given as follows: E . A . G andrud, p r e sid e n t, P op e C o u n ty S ta te B a n k , G len w o o d , M in n e sota: T NORTHW ESTERN BANKER readers give opinions on Mr. Morgenthau's proposal to limit corporation profits to six per cent “We m u st appreciate th e fact th a t co rporation profits m u st be lim ited for at least tw o reasons: “F irst, to p re v e n t inflation by p re v en tin g rise in prices and too g reat distribution. E . S. K ie r n a n , c a sh ie r , A lto n S a v in g s “Secondly, th ere is a general feeling B a n k , A lto n , IoAva: am ong th e you n g er elem ent th a t, if “W e th in k now is th e op p o rtu n e tim e for b an k s to accum ulate a large u n d i th e y are req u ired to give of th e ir serv vided profits account, to absorb th e in ice a t a v ery low w age and in cu r the w a r danger as well, those rem aining evitable losses to follow w h en th is ‘w a r boom ’ collapses. D enied th a t a t hom e should n ot be perm itted to rig h t, w h ere w ill we charge them ? If profit unduly. “B ut I am opposed to th e 6% lim it we accept th e risk s of an ‘all o u t’ effort to w ard s n atio n al defense, w e can be because I feel th a t it is too low. Some of us older folks recall th a t a good deal assu red th a t we w ill have to tak e some losses. W e th in k th e ta x on large in of th e profit in th e last w ar w as on p ap er only and w hen th e crash came com es and co rporate incom es is high enough now. B roaden th e base u n til th ese p ap er profits disappeared in a sh o rt tim e. A dequate reserves should everyone is ta x conscious and p erh ap s levy a F ed eral sales tax. T h en citizens be allow ed to be bu ilt up to take care of th is likely h ap pening a t th e end of w ill dem and business m an ag em en t and th e w ar. W e do n o t w a n t to see th e econom y in g o v ern m en t.” g en eral b ank closings th a t th e p re C. I j. B r e c k e n r id g e , c a sh ie r , F ir s t vious w ar inflation b ro u g h t about.” N a tio n a l B a n k in A m m o u r , S o u th D a kota: “W e do not like such radical talk. T his w a r debt m ust, if corporations are to exist, be sp read over a large n u m b er of years. “W e also are opposed to such large ta x on corporations an d allow individ uals and p a rtn e rsh ip s in a p re fe rred class. W e feel th is is an u n fa ir and d iscrim in ato ry ta x .” A N o r th D a k o ta b an k er: “I am opposed to th e 6% lim it on corp o ratio n profit because I feel th a t it is too low. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “I presum e th e survey you are con ducting is relativ e to th e effect such legislation w ould have on banks di rectly. I w ould n o t be m uch opposed to a lim it of 6% n e t on y o u r invested capital, as a ceiling du rin g th e w ar. Concessions, how ever, should be g ran ted to a lim ited extent, for p rovi sions for losses th ro u g h settin g up of reserves for th a t purpose and th e n held to its being used for th a t purpose, say du rin g th e n ex t five years, and if not used up it be considered subject to ta x on th e original basis.” F . G. G rosz, v ic e p r e sid e n t, B o w d le S ta te B a n k , B o w d le , S o u th D akota: “W e certain ly are not in favor of th e lim it of 6% and th e n let th e govern m en t take all th a t in excess. “If th is m easure should becom e a law th e banks w ould have no w ay to set up a reserve for fu tu re losses, etc., and we su rely w ill have losses w hen this spending spree is all over.” L. D. M u rfield , c a sh ier, C itizen s S a v in g s B a n k , A n a m o sa , Towa: “T his appears a difficult question to handle in as m uch as w e are n ot p e r haps fully inform ed as to th e condi tions w hich m ay req u ire such a tax. “T he go v ern m en t came to th e rescue of th e banks, and created sufficient credit to stay th em over, and now if th e condition of th e g overnm ent m akes it necessary for us to give all possible assistance to m ain tain our system , th e n no doubt an y tax w ill be reason able. “It does appear th a t a 100% ta x m ay defeat its purpose and th a t p erhaps th ere will be m ore revenue derived from a tax of say 70%, if figured over a period of several years, and th a t th is w ould leave m ore incentive for new business to invest capital, and conse qu en tly w ith o u t sufficient know ledge, p erhaps it is only n a tu ra l th a t I w ould be opposed to th is enorm ous tax .” C. B . N e w m a n , v ic e p r e sid e n t, D o d g e C en ter S ta te B a n k , D o d ge C enter, M in n eso ta : (T u rn to page 27, please) Northwestern Banker Novem ber 1941 12 News and O F T H E B A N K IN G V iews W O R LD By Clifford De Puy D R. M A R C U S N A D L E R , professor of finance a t New Y ork U niversity, in speaking before th e savings b ank division of th e A m erican B an k ers A s sociation last m onth, said: “S tr o n g b a n k s w ill b e a b le to w e a th er th e sto rm th a t is b o u n d to fo llo w . T h e y w ill a lso be in a p o sitio n to fin an ce th e p o stw a r r e c o n str u c tio n and co m b a t e ffe c tiv e ly a ll effo rts th a t m a y b e m ad e to w a rd n a tio n a liz a tio n o f th e b a n k in g s y s te m .” S ecr e ta r y o f th e T r e a su r y H e n r y M o rg en th a u , Jr., has been bom barded w ith criticism about his plan to lim it corporations to a profit of only 6 per cent of th e ir invested capital. T his plan has now been postponed to Ja n u a ry 1, 1942, and it m ay be re considered at th a t tim e. As m any b an k ers and business m en have pointed out, corporations have to m ake m uch m ore th a n 6 p er cent to take care of the y ears w hen th e re m ay be losses to be u n d erw ritten . The “old Chicago Room ” of th e Chi cago Club w as th e scene of th e g a th e r ing of b an k ers d u rin g th e A. B. A. con vention, w ho w ere invited for b re a k fast by th e N o rth e rn T ru st Com pany officials, am ong w hom w ere th e fol low ing w ho officiated a t “delivering th e bacon”: S o lo m o n B . S m ith , L aur- T he A ssociation, how ever, is in ex cellent financial condition, as th ey have over $21,617 in cash and savings bonds on hand.v One w ell-know n colum nist, in w rit ing about affairs a t W ashington, says th a t “M any business m en believe th a t W a sh in g to n has replaced H o lly w o o d as th e h o m e o f th e s c r e w b a ll.” The N ational City B ank of New York had a continuous open house during th e A. B. A. convention, and am ong those w ho rep resen ted th e bank were: W . R a n d o lp h B u r g e ss, vice chairm an of th e board; J. S. R o c k e fe lle r , vice president; D e W itt A . F o r w a r d , vice p resident; G eorge S. M oore, vice p resi dent; G eorge W . F r a k e r , vice president; and G. S. C arrel, assistan t cashier, of th e public relations division. P . D. H o u s to n , re tirin g p resid en t of th e A m erican B ankers A ssociation, in re p o rtin g to th e organization th is year, said th a t rate reductions by su rety com panies w ill effect an n u al savings in th e insurance p rem ium costs of b anks of $1,800,000. T his is in addition to reductions to taling m ore th a n $4,000,000 negotiated by the In surance and P rotective Com m ittee of the A. B. A. since June, 1937. an ce B. R o b b in s, D a v id B . M cD o u g a l, C. M. N e lso n , B a n n in g M cF a rla n d , vice presidents; E d w a r d B . S m ith , J o h n A. P r o sse r , C h arles B . W ea v er, A lfred B ritta in , G. B y le F is c h e r , second vice presidents; B y e ll H . R itc h ie , a ssistan t cashier, and R o b er t H u n t. P h illip A. B e n so n , presid en t of th e Dime Savings B ank of B rooklyn, in discussing “Defense Savings B onds,” states th a t bonds for a to tal am ount of $1,272,000,000 m a tu rity value have been sold, and th a t th e sale of stam ps to tals about $15,000,000. W illia m D. H u g h e s , secretary of th e N ebraska B ankers A ssociation, in m ak ing his an n u al re p o rt to th e convention last m onth, show ed th a t receipts from m em berships from October 1, 1940 to Septem ber 30, 1941, am ounted to $12,333.01, com pared to $10,759.44 for th e previous year. R eceipts from th e insu ran ce agency w ere a little less th is y e a r th a n th e year before, as th ey w ere $3,869 last y ear and only $3,011 for th e c u rre n t year. Total receipts for th e y ear from all sources am ounted to $20,499, and total disbu rsem en ts am ounted to $21,030. R ecent figures show th a t banks and tr u s t com panies, including receivers, to w hich m oney w as loaned by th e Northwestern Banker Novem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R e c o n str u c tio n F in a n c e C orp oration , have m ade a v ery excellent record in th e ir rep ay m en ts to th e R. F. C. The total am ount of m oney loaned to th is group is $2,020,206,321, and the am o u n t repaid has been $1,925,014,869, or 95 per cent, w hich is certainly a v ery excellent and rem arkable record on th e p a rt of the banks of th e U nited States. B anks in th e U nited States lost $19,220 in accepting 2,697 counterfeit notes d u ring th e fiscal y ear ended Ju n e 30th, J u lia n T. B ab er, of th e U nited States Secret Service, W ashington, D. C., told th e S tate S ecretaries Division of the A m erican B ankers A ssociation at the an n u al convention. D uring the previous fiscal year, he pointed out the loss am ounted to $33,916 represented by 4,433 notes, w hile th e public loss du rin g the 1941 fiscal y ear am ounted to $91,097, a decrease of $54,547 for th e previous fiscal year. T his rem arkable reduction in counterfeiting is due in large m easure to th e nationw ide “K now Your M oney” educational cam paign in stitu ted by th e Secret Service four y ears ago. A. T. D o n h o w e , president, and C. F lo y d H a r r is, vice presid en t of the Iow a B ankers A ssociation, together w ith C lifford D e P u y , p u blisher of the N or thw estern B anker , broadcast over KSO last m onth in behalf of the Iowa Association. The broadcast w as arran g ed by F r a n k W a rn er, secretary. Mr. Don how e discussed th e n um ber of loans being m ade by Iow a banks, w hile Mr. H arris told of th e benefits of p u rch as ing defense bonds and stam ps and Mr. De P uy gave b rief new s item s from the recent A m erican B ankers A ssociation convention in Chicago. D a le C a rn eg ie, th e w ell-know n in fluencer of people, in an address w hich he m ade recently, said th a t P h il H a n n a , editor of th e Chicago Journal of Comynerce, “Is w here he is today because he played the piccolo w hile a poor b an k er in M ichigan. It m ade him popular at dances, and th u s co n trib uted to his success.” P ersonally, we th in k th a t th e piccolo m ay have had som ething to do w ith P h il’s success, b u t th e g reater sh are of it came from th e pointed p a ra graphs of his p u n g en t pen. F r a n k W a rn er, w ho ju st celebrated his tw enty-fifth an n iv ersary as secre ta ry of the Iow a B ankers A ssociation, w as tru ly surp rised and delighted w ith th e m any letters w hich he received upon th e occasion of th is well-know n anniversaary. In acknow ledging these to his friends, he said: “The w atch presented to th e w rite r d uring th e sam e banquet from th e Council of A dm inistration of our A ssociation on behalf of th e m em ber banks, is a b eau tifu l th in g in it self. W h at it m eans to th e w rite r can never be adequately expressed by him , b u t beautiful as it is and all th a t goes w ith its p resen tatio n on behalf of th e Iow a B ankers, it can never equal in m eaning w h at these tw o (T u rn to page 35, please) 13 South Dakota—Twenty Years Ahead of the Parade What Happened When the State of South Dakota Ventured Into Socialism V ER tw e n ty y ears ago, we in South D akota, got th e idea th a t we could lift ourselves by th e boot strap s. W e cursed p riv ate capital because th e y w o u ld n ’t ru sh in and help us develop o u r state as ra p idly as we w ould have liked. W e ac cused th em of w an tin g to destroy th e com m on people. W e called th em blind to th e ir o p p o rtu n ities and finally we resolved to help ourselves th ro u g h th e use of special pow ers voted to th e state. O By Millard G . Scott D ir e c t o r Rural C r e d i t Board Pierre, South Dakota W e b e lie v e d th e c u re fo r a ll ou r ec o n o m ic ills w a s c o n ta in e d in g o v e r n m e n t o w n e r sh ip . W e w e n t in to th e in s u r a n c e b u sin e ss, th e b o n d in g b u s i n e ss , co a l m in in g , m a n u fa c tu r e o f c e m en t, and in to th e b a n k in g b u sin e ss th r o u g h th e so -ca lled G u a ra n tee A ct, and in to th e fa rm lo a n b u s in e s s th r o u g h th e c r e a tio n o f a D e p a r tm e n t o f R u ra l C redit. E v e r y o n e w a s h a p p y a n d e n th u s ia s tic a s lo n g a s th e m o n e y o r th e b en e fits w e r e fo r th c o m in g ; b u t, oh , th e w a ils th a t w e n t up w h e n ou r d ream h o u se s c o lla p se d a n d th e b ills c a m e d ue. W ith one exception, all hav e failed m iserably. T he State Cem ent P lant, w ith a v eritab le m onopoly on all b u si ness w ith in th e state, and w ith m a n agem ent th a t has n o t sought a price w ar, is a p p a re n tly p aying out. W h y a n y o n e h a rb o rs th e id e a th a t a p o litic a l a p p o in te e ca n , o r w ill, m a n a g e a g ig a n tic b u s in e s s v e n tu r e b e tte r th a n a p r iv a te c itiz e n , tr a in e d and e x p e r ie n c e d in h is o w n lin e , u s in g h is o w n fu n d s and r is k in g h is o w n fu tu r e , is m ore th a n Ave ca n u n d ersta n d . W hen ev er politicians ru s h in w h ere sound b usinessm en fear to tread, you can bet y o u r last dollar th a t, sooner or later, th e ta x p ay ers w ill be called u pon to salvage th e w reck. T his has been so tru e of South Da k o ta ’s v e n tu re s into th e business field an d of th e experiences of o u r sister states and of th e F ed eral G overnm ent itself, th a t p erh ap s we m ay be p a r doned for feeling th a t these ex p eri ences should have been a w a rn in g to the sponsors of m uch larg er lending, spending, o p eratin g v e n tu re s now be- M IL L A R D G. S C O T T ing attem p ted on a national and even an in tern atio n al scale. H e r e in S o u th D a k o ta , avc h a v e le a r n e d “th e h ard w a y ” th a t g o v e r n m e n t h a s no b u s in e s s in b u sin e ss. Our C onstitution w as “old fash ioned” and had to be changed so th a t th e S tate G overnm ent could borrow funds necessary to s ta rt business en te rp rises not necessarily a p roper func tion of governm ent. We, too, w ere told th a t the full faith and credit bonds, sold to secure funds w ith w hich to m ake farm loans to individuals, w ould be “self-liquidating.” W ith all th e en th u siasm of th e little boy w ith a new gun, a young m an ju st out of school or a professor tu rn e d loose, we “shot th e w orks,” expounded th e ories and endeavored to revolutionize th e old, trie d and tested w ays of ac com plishm ent. As soon as we could repeal th e con stitu tio n al restrictio n on indebtedness, we sold $47,500,000 w o rth of bonds a t in te re st rates as high as 6 V2 p er cent, and loaned th e g re a te r p a rt of th is money, not only in th e proven sections of our state, b u t in th e sem i-arid an d u n tried sections as well. M any loans w ere m ade to acquire and plow up good grazing land for risk y ag ricul tu ra l practices. Loans w ere m ade d u r ing a period of h ighest land values ever reached in th e N orthw est, and, in m any instances, w ere loaned in far from conservative am ounts and often to speculators. W e had state inflation on top of national inflation. N eedless to say, a political appointee does not follow so rigid a collecion policy as a priv ate loaning agency. As a consequence, approxim ately n in ety per cent of th e original bor row ers lost th e ir farm s, and, of course, reaped no benefits from th e loans. F u rth erm o re, no adequate plan for m eeting m atu rin g bonds or in te re st paym ents w as set up. R efunding bonds w ere sold to m eet these obliga tions and th ey w ere sold w ith o u t any reg ard for o ther m aturities. F o r fif teen years, th e state followed such a course. As a consequence, bonded debt piled up in succeeding y ears u n til m atu rities reached as m uch as $7,000,000 in one year. L ittle factual inform ation w as av ail able for th e people, as m ost officials failed to realize, or hesitaed to adm it, th e tru e financial condition of R ural Credits. By 1939, b u t 1200 of th e orig inal 12,000 borrow ers still ow ned th e ir ow n hom es and a num ber of them had delinquent loan in stallm ents or unpaid taxes. G overnor H arlan J. Bushfield, in his in au g u ral address, urged a speedy b u t orderly liquidation of the D epartm ent. The 1939 legislature, by resolution, condem ned th e half-hearted handling of R ural Credit affairs and dem anded real liquidation. W ith few changes in th e personnel of th e D epartm ent, b u t w ith a new conception of public em ploym ent, a cam paign to re tu rn seven tho u san d R u ral C redit farm s to p ri vate ow nership w ith in a five-year pe(T u rn to page 44, please) Northwestern Banker Novem ber i9 b l https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 Nebraska Bankers In Omaha O. A. Riley, Vice President of Hastings National Bank, Named to Head Association During Coming Year A. RILEY , vice p resid en t of th e H astin g s N ational B ank, ♦ w as elected p resid en t of the N ebrask a B an k ers A ssociation a t the an n u al m eeting of th e organization held in Om aha last m onth. H eading th e executive com m ittee is E d g ar Mc Bride, p resid en t of th e Com m ercial Bank, Blue Hill; W illiam B. H ughes continues as secretary of th e Associa tion, and R. H. K roeger, vice p re si dent of th e Live Stock N ational, Oma ha, w as nam ed tre a su re r. O thers m a k ing up th e executive com m ittee are, from G roup One, J. D, Stocker, cash ier, Otoe C ounty N ational B ank, Ne b rask a City; G roup T hree, L. R. Gillett, president, N ational B ank of N or folk; G roup Five, Ben N. Saunders, vice president, F o rt K earn ey State Bank, K earney; G roup Six, R. E. K night, president, A lliance N ational Bank, and for Omaha, R. H. Hall, vice president, N o rth Side B ank. N ebraska officers of th e A m erican B ank ers A ssociation elected w ere, J. O. Peck, vice president, C ontinental N ational B ank, Lincoln, state vice president; C. C. N eum ann, vice p re si dent, F a rm e rs & M erchants N ational Bank, Oakland, m em ber nom inating com m ittee; a ltern ate, J. D. M illiken, vice president, F re m o n t N ational Bank; O. W. Johnson, vice p resident, B ank of B urw ell, vice president, state b an k division; H. A. Hovey, p resident, South O m aha Savings Bank, vice p re s ident, savings b an k division, and H ow ard H adley, tr u s t officer, C ontinental O N ational, Lincoln, vice president, tru s t division. E. N. Van H orne, executive vice president, A m erican N ational Bank, Chicago, w as nam ed presid en t of the P ast P resid en ts’ A ssociation, and H. H. B arber, presid en t of th e Citizens N a tional Bank, Boone, Iowa, is vice p res id en t of th e sam e organization. Am ong resolutions adopted by N e b rask a ban k ers w ere th e following: “The p ast year has w itnessed an u n u su al and coordinated activ ity in the all im p o rtan t w ork of A ssociation com m ittees. C u rren t problem s and diffi culties have been m et w ith efficient dispatch. Long te rm program s have been launched, w hich, if p u rsu ed w ith th e th o u g h tfu l plan n in g evidenced d u r ing th e p ast year, w ill prove of u n lim ited value to th e banks of N ebraska an d th e com m unities th ey serve. “W e recom m end th e continuation of th e R egional C learing H ouse program and th e stren g th en in g of th e individ ual R egional Clearing H ouse Associa tions so th e ir full usefulness m ay be u tilized by th e N ebraska banks. “W e com m end th e w ork of th e A gri c u ltu ra l Com m ittee u n d er th e leader ship of C hairm an E d g ar M cBride, and “W hereas ag ricu ltu re is a m ajor in d u stry th ro u g h o u t th e U nited States and of increasing im portance u n d er th e p resen t national em ergency, th u s being of v ital in te re st to a large m a jo rity of th e m em ber banks of th e A m erican B ankers A ssociation, we com m end th e w ork of Dan Otis and A. G. B row n of th e A g ricultural Com m ission of th e A m erican B ankers As sociation and fu rth e r recom m end and urge to th e executive council of th e A m erican B ankers A ssociation th a t an a g ricu ltu ral section be created to fu r th e r th e in terests of ag ricu ltu re th ro u g h o u t th e en tire country. “W e com m end th e w ork of our com m ittee on exam ination fees w hich undoubtedly h ad m uch to do w ith the reduction of fees already in force for sm aller n ational banks and com m end an d u rge th e ir fu rth e r efforts in th is direction. “W e recognize and appreciate th e statem en t of th e S ecretary of T reas ury, H en ry M organthau, Jr., in his press conference as rep o rted in the A m erican B anker, Ju ly 8, 1941, w h ere in he stated: “ ‘T he position, as far as th e adm in istratio n is concerned, is th a t an y tim e any p riv ate in stitu tio n can do busi ness, we are tickled to step aside and let th em do it, b u t we are only in busi ness w hen th e p riv ate in stitu tio n s can ’t or w on’t do business.’ and urge th e banks of N ebraska to ac cept th is statem en t as conclusive. ‘T herefore, we recom m end th a t th e com m ittee on agencies in com petition w ith banks p u rsu e its efforts, and w ith th e cooperation of our banks prove conclusively to th e public and to those in a u th o rity th a t these em ergency agencies are now unnecessary, and th a t th e functions of deposit and dis(T u rn to page 41, please) A T T H E N E B R A S K A C O N V E N T IO N P ictu red on the opposite page are a num ber of those atte n d in g th e recent annual convention of th e N eb rask a B ankers A ssocia tion, held in Omaha. B eading from le ft to rig h t th ey are: 1— M em bers of th e F ifty -y e a r Club who atte n d e d th e convention; C. K . H a rt, p residen t A dams County B ank, K enesaw ; J . W. O ’N iel, Omaha N atio n al B an k ; W. H. M cDonald, chairm an of the board M cD onald S ta te B ank, N orth P la tte ; W illiam B. H ughes, secretary N eb rask a B ankers A ssociation; H a rry M iller, p resid en t F irs t N atio n a l B ank, S ta n to n ; Charles E. Wood, p re si dent and cashier The B an k of T alm age; and R. C. Boyd, p re si dent Carson N atio n al B ank, A uburn. 2— A group a t the reg is tra tio n desk. 3—J . It. Stevenson, cashier F arm ers B ank, N e b rask a C ity; V. P. M eyer, a ssista n t cashier F irs t N atio n al B ank, St. Joseph, M issouri; and L. C. Farw ell, cashier S ta te B ank of DuBois. 4—M em bers of th e n om inating com m ittee—F. W. H arris, vice president A lliance N atio n al B an k ; J, O. Peck, vice president C ontinental N atio n al B ank, L incoln; G. F. Moss, cash- Northwestern Banker Novem ber 19kl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ier McCook N atio n al B an k ; J . B. R ossiter, p resident F irs t N a tional B ank, W a lth ill; T. F. Green, cashier B ank of V alley; and Glen T. Gibson, p resid en t Exchange B ank, Gibbon. 5— W ade R. M artin , su p erin ten d en t of banks, L incoln; and W. H. M c Donald, chairm an of the board M cDonald S ta te B ank, N orth P la tte . 6— P. I. B adura, cashier A shton S ta te B ank; and A. B. Outhouse, p resid en t F irs t N atio n al B ank, Loup City. 7—One of th e la d ie s’ luncheons held a t th e H otel F o ntanelle. 8—O. J. M elton, p résid en t F irst S ta te B ank, Lodgepole; W. S. Rodman, p resid en t A m erican N atio n al B ank, K im b all; and F ra n k M. F arr, cashier F ir s t N atio n al B ank in A urora. 9— C. C. N eum ann, executive vice p resid en t and cashier F arm ers & M erchants N a tio n al B ank, Howell; and H en ry Schneider, p resid en t P la ttsm outh S ta te B ank. 10—Mrs. W. A. Saw tell, chairm an com m it tee of hostesses; Mrs. A. L. Coad, Mrs. C. A. G regory, and Mrs. V. B. Caldwell. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis How O ur Auditing System Improves Bank I AM n o t an accountant, b u t study of accountancy as offered in com m ercial college and endeavor to learn com m ercial ban k in g in its v a rious stages an d degrees, suggested plans for audits. T hese have been en couraged th ro u g h w o rk in an d w ith Iow a banks, since th e y e a r 1921. Some of th em have established them selves very definitely in m y m ind and I hope the read ers of th is article m ay receive the nucleus for beneficial ideas for the good of b a n k ers and banking. W h at is au d itin g in a bank? Simply, it is exam ining our books; all of the accounts show ing as an asset or lia bility, incom e or expense, to ascertain th e co rrectness of such figures u n d er our jurisdiction. Yes, it should have an o th e r purpose; th a t purpose is of discouraging an y inaccuracy, or a t tem pt, on th e p a rt of anyone to m is app ro p riate or embezzle. The rep o rts of any audit, or ex am ination should be w ritte n and a m a tte r of record. W e are not a large bank, our total assets being approxim ately tw o and one-half m illion. T herefore, some w ork m u st be perform ed by individ uals w hose w o rk over-laps as to de p artm en ts. W e adhere stric tly to b a n k ing; no revenue being obtained from real estate tran sactio n s, or from in surance. A nd w ith th e decrease in re tu rn s from good loans and oth er prim e in vestm ents, it is n ecessary to have our p rotective control not too expensive. W e cannot h ire a full tim e auditor, responsible to th e directors alone for au d its and direct supervision. T his w ould be th e p ro p er procedure and is followed in large ban k in g in stitu tio n s. H ow ever, we have been able to satisfacto rily provide a system of au d itin g for our ow n purpose. It is one w hich, in m y opinion, could be slightly revised, or g enerally followed for satisfacto rily au d itin g any b an k of our size or sm aller. It is intended u n d er our program of auditin g th a t such au d it shall w o rk in full cooperation w ith th e sem i-annual exam inations by th e B anking D ep art m en t and by our B oard of D irectors. B ank E x am in ers receive in th e ir visits to n u m erous banks, m an y ideas; th e b ette r ones are passed on to us b a n k ers in th e sp irit of kind n ess and h elp fulness. Northwestern Banker Novem ber 19bî https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By E. E. W iem er Cashier C itize n s Natio nal Bank Boone, Iowa "W e spend much money for conventions and pro motional activities of one kind and another. A few dollars more wisely spent along the line of construc tive e x a m in a tio n of a c counts could save us worry and p a y us la r g e r d iv i dends" In the exam ination by our D irectors, it has been our in ten tio n to have them conduct such exam ination as th ey p re fer. W e suggest having th e D irectors use for detail w ork, one or tw o indi viduals of ability and good standing in th e com m unity; freq u en tly th is is a form er employee. T his w ill facilitate and assist in th e w ork and give th e th re e directors tim e to devote m ore of th e ir a tten tio n tow ard conducting a th o ro u gh exam ination of th e assets. T hey can review th e sig n atu res and collateral to notes, giving th e m anage m en t m any ideas and suggestions re l ative to th e various lines of credit. Of course, the d irecto rs’ exam ination should be in w ritte n form and full de tail, w ith criticism s and suggestions for im provem ent. T his au d it should be considered at a reg u lar m eeting of th e B oard of D irectors and re fe rred to th e m anaging officers for enforcem ent as rap idly as practical. W hile dis cussing d irecto rs’ exam inations in con nection w ith th e auditing function, m ay I say—no director should, in any w ay, be in tim idated to re stra in his ideas as to the assets, nor to any con clusion, b u t should be given th e op p o rtu n ity to speak freely and in no w ay develop into a Yes-man. D irectors should tru ly direct th e policy of a b ank Operation and should be fam iliar w ith th e b a n k ’s affairs and policies. In our audit, assets and liabilities are proved periodically, not less th a n once each m o n th for each general ledger account; occasionally, some de p a rtm e n t m ore frequently. Our aim is to keep th is m ethod of au d it as ef fective and econom ical as possible, featu rin g th e S urprise A udit. It is easy to get into a ru t; as w as our case a few m onths ago. In a v isit w ith our au d ito r it w as suggested to him the au d it of th e loan departm ent, u nder th e supervision of th e m anaging offi cers, w as becom ing routine, w ith no su rp rise featu re and w ith individuals responsible for th a t d ep artm en t as sisting in th e au d it and know ing in advance th e tim e of th e audit. I w an t each em ployee to know it is m y desire to have m y d ep artm en t audited w ith the sam e su rp rise featu re and reg u larity as is followed in o th er d ep art m ents. T his im proves em ployer-em ployee relationship. If we do aw ay w ith th e su rp rise featu re of an audit, we defeat one of the m ain controls of exam ination or auditing. In th e au d it of our bank, a w ritte n rep o rt is m ade en u m eratin g th e ex ceptions found. Also suggestions for im proved records w hich, in itself, w ill facilitate fu tu re auditing and assist th e b ank exam iners. In short, it is the policy of a cooperative, helpful exam ination, in w ritte n form , to be review ed im m ediately upon com ple tion of th e au d it and at fu tu re dates. F o r a com plete record of the m onthly audit, we have prep ared a m aster sheet w ith adequate space for a y ear of audits; one square devoted for each m onth, w ith tw elve squares set opposite th e heading of each ac count carried on our ledger as an asset or liability. W e a u d it th e fo llo w in g a c c o u n ts m o n th ly : C h e c k in g a c c o u n ts, S a v in g s a c c o u n ts, C h r istm a s sa v in g s clu b s, T im e c e r tific a te s o f d e p o sit, D o rm a n t a c c o u n ts, R e c o n c ile m e n t o f co rre sp o n d e n t h an k a c c o u n ts, B u d g e t lo a n s a v in g s a c c o u n ts, C ertified c h e c k s, O v erd ra fts, T r u st d e p o sits, B o n d s (g o v e r n m e n t, m u n ic ip a l), C om m ercia l lo a n s, F a r m m o r tg a g e lo a n s, C ity real e sta te lo a n s, F . H . A. lo a n s, C orn lo a n s, (T u rn to page 59, please) 17 News Motas From Nebraska What Banks and Bankers Are Doing in the Cornhusker State F T E R reading new sp ap er ac counts ap p earin g som e m onths ago about th e discovery of oil in so u th e a ste rn N ebraska, we h ad supposed th a t F alls City w ould have experienced all th e boom tow n aspects th a t go w ith Black Gold, b u t in talk in g w ith A . F . S c h a ib le , p resid en t of th e R ichardson C ounty B ank of F alls City, we found o u r build-up w asn ’t th e real thing. It is tru e th a t w ith fo rty w ells n e a r F alls City, and a n o th e r ten producing w ells n o rth and w est of the tow n, th is com m unity of 6,500 popu lation is g ettin g along very w ell in deed, th a n k you. Considerable new m oney has come into th e tow n, all th e business buildings are occupied and business is good, b u t not of th e boom v ariety. M any te st holes w ere drilled, as is alw ays th e case, b u t th e producing w ells have now settled dow n to a ra th e r steady output, w ith some of th em p um ping 400 to 500 b a rre ls p er day. Mr. Schaible has a producing w ell on one of his farm s, as noted in th e p ictu re on th is page. A M other N atu re has been kind to F alls City in an o th e r way, in th a t th e to w n is located in th e E a ste rn Nab rask a apple belt. A . I). C am eron , as sista n t cashier of th e F irs t N ational B ank, told us a little about grow ing apples, and has an orch ard of his own. T he 1940 A rm istice Day storm took its toll of apple trees in th e vicin ity of F alls City and of course m any of th e trees w ere destroyed. New tre e s have been planted, b u t it tak es seven or eight y ears a fte r p lan tin g for an apple tree to s ta rt bearing. The o rchards h ere produce m ostly Jo n a th a n apples, w ith some G rim es Golden and Deli cious. T he F irs t N ational B ank of F alls City is in new q u a rte rs across th e co rn er from its fo rm er location, w ith com plete new in te rio r and fixtures th a t are m ost attractiv e. B usiness is good in Dawson, ac cording to A1 R ile y of th e Dawson B ank. H is fath er, as a t least every N ebraska b an k er know s, is D a n J. R ile y , p resid en t and cashier. Mr. Daw son, Sr., for m any y ears has helped to fight th e b attle of th e N ebraska B ankers A ssociation th ro u g h th e Ne b rask a legislature. He h a sn ’t alw ays won, of course, b u t his b attin g av e r age is rig h t n e a r th e top. By Henry H. Haynes E d ito r Believe it or not, A uburn, N ebraska, has two com plete business sections— som ething u n u su al for a city of only 3,700, w ith tw o railroads and a co u rt house scram bled into th e circum stances th a t caused it all. W e asked J o h n T. Z a ch a ria s, cashier of the Carson N ational Bank, to tell us about it, and here is his explanation. It seem s th a t w hen the railroads first came th ro u g h A uburn, a b ran ch of the S anta Fe w ent w est th ro u g h th e south p a rt of tow n, and th e M issouri P a cific w en t n o rth th ro u g h th e n o rth e rn section. W ith the stations nearly a m ile apart, it w as n a tu ra l th a t b u si th is happened y ears ago, and one w ould th in k th e w hole th in g w ould have been forgotten by th is tim e, b ut we u n d erstan d some of th e oldtim ers are still doing a little “feudin’ ” on th e ir own account. The Carson N ational B ank is in the south, or courthouse section, and has assets of m ore th a n a m illion dollars. If you happen to be in A uburn around m ealtim e, be sure and eat at the A u b u r n H o te l. H om em ade jam , and hot biscuits th a t m elt in your m outh—hom em ade spiced pears or peaches, and to cap it all off, hom e m ade icecream in several flavors, and th en ju st a lot of good food in betw een. F o r b reak fast th e re is a big bowl of strain ed honey on the table, for your pancakes, b ut th e bees get credit for this. Above is p ictu red an oil well which came in on the farm of A. F. Schaible, p resi dent of th e R ichardson County B ank, F alls City. Of the four men a t the rig h t in the p icture, Mr. Schaible is stan d in g th ird from th e left. ness en terp rises of various kinds should sp rin g up around both. B ut th is w as only the start. Som etim e later th e couny decided to move the courthouse from B row nsville to A u burn, and th en th e point w as raised as to w hich p a rt of th e city should have th e courthouse, th e n o rth or south. South finally won, so th e n o rth prac tically seceded in ev ery th in g b u t its nam e, and eventually th e n o rth busi ness section has developed into a m uch larg er com m ercial center. All J a m e s P . K e lle y , cashier of the F irst State B ank at Johnson, show ed us w here an addition w ill be bu ilt onto th a t bank in the n ear future. P resen t q u arters are being enlarged by a new space ten by sixteen feet, to be used largely for storage purposes. W ith deposits of $235,000, Mr. Kelley rep o rts m ore th a n the u sual head of livestock in th a t vicinity, and his ban k is m ak ing th e usual loans on this collateral. D. C. Casey, cashier of th e F irst Na(T u rn to n ex t page, please) Northwestern Banker Novem ber 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 W h y W e RßfuSßd Deposits By J . J . Krall Cashier F airfax S ta te S avings Bank I n the June issue of the N orth w est B anker , toe 'published an editorial “A re Y ou R efu sin g to T ake D eposits?” This told the sto ry of a banker w ho said he w as refu sin g to take deposits because he did n o t th in k he could in ve st th e m profitably. I n the J u ly issue of the N o rthw est ern B anker , th is question was again outlined in an editorial “Consider Cus tom ers A s G uests of Y our B a n k.” I n this editorial, a letter fro m a bank er w ho agreed th a t banks should ac cept deposits at all tim es w as repro duced. T h e n in th e October issue there ap peared a n o t h e r editorial “M aking M oney on D eposits a R eal P roblem ,” in w h ich a bank p resident said he be lieved it was good banking to refuse deposits w h e n th e y could not be in vested profitably. In th is article, “W h y W e R efu sed D eposits,” J. L. K rall, cashier, F airfax State Savings B ank, F airfax, Iow a, gives his v ie w s on w h y th e y refused tim e deposits a fe w years ago. W e should be glad to have yo u r ex pression of opinion on this v e r y in te r esting and tim e ly subject.—E d ito r’s Note. ern IUST a little fuel to th e fire re g a rd ez ing th e discussion ab o u t refu sin g deposits. “A few y ears ago (d u rin g th e horse and buggy days) we w ere p aying 2 p er cent on tim e and savings deposits and a t th a t tim e w e refu sed in th is little tow n of less th a n 300 about $40,000 in tim e deposits d u rin g one year. The refusin g of th ese deposits proved to be good business on our p a rt an d ben e ficial in m ore th a n one w ay, an d I shall endeavor to set out th e facts. “If w e h ad accepted th e $40,000 w hich we refused, our earn in g s for th e y ear w ould have been $800 less and we know th e y w ere sm all anyw ay. In every case w h ere an in te re st b e a r ing deposit w as refu sed th e depositor carried no o th er balance w ith us—th a t is no dem and m oney. A nd in m ost instances th e depositor w hose m oney we refu sed to accept a t in te re st w as looking for some o th er form of in v est m ent and our deposit would, w e be lieve, have been only u n til th e deposi to r found som ething b etter. W e sug gested o th er form s of in v estm en ts and even suggested th a t some of our com petito r b anks m ight like to have th e m oney and m ig h t even pay th em larg er interest. Northwestern Banker Novem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “W e learned th a t w hen it becam e know n th a t our b an k w ould n ot accept large deposits on in te re st b earin g de posits it w as th e b est advertisin g we could possibly hope for. W e h ad no difficulty in explaining to our custom ers ju s t w hy it w as n ot good business to accept such deposits. “T he solution to our problem w as solved w hen on Ja n u a ry 1, 1937, we reduced th e in te re st on tim e and sav ings deposits from 2 to 1 p er cent. Yes, I have had m any b an k ers tell me th a t th ey could not u n d erstan d how any b ank could m ain tain th e ir deposits w hen paying b u t 1 per cent. “F o r yo u r inform ation I give you th e follow ing facts and figures show ing th e deposits in our b an k a t th e tim e of m aking th e reduction in in te r est an d a t th e close of business Octo b er 6th. J a n . 1, O c t, 6, D em and D e p o s its 1& 37.. .$ 126,519.34 1941. . . 275,254.35 T im e D e p o s its $211,622.81 177,757.43 T o ta l D e p o sits $338,142.15 453,011.78 “By these figures you w ill see th a t our dem and deposits increased $148,735.01, our tim e deposits in c re a se d $33,865.38 and th e to tal deposits increase w as $114,869.63. In m y opinion our p resen t statem en t reflects a h ealth ier and m ore prosperous pictu re th a n th e one of Ja n u a ry 1, 1937, and since J a n u a ry 1, 1937, we have not h ad to re fuse to accept in te re st b earin g depos its. “I m ig h t add fu rth e r th a t all of m y com petitors in th is te rrito ry , except Cedar Rapids, have continued to pay in te re st as m uch as 2% p er cent on deposits. “Our governm ental agencies in th e loan field are m ore com petition to us th a n are those w ho seek to have our depositors leave th e ir m oney w ith them . A nd if we are to m eet th e com p etitio n of th e governm ental loaning agencies we m ust, of course, reduce th e overhead (w hich includes in terest paid) in order to m eet th a t com peti tio n and we believe we have been very successful. As a m a tte r of fact, we have never, to our know ledge, lost a loan w hich we desired to m ake, to one of th e governm ental loan agencies. “I feel certain th e b a n k e rs’ troubles so fa r as it being necessary to refuse to accept tim e deposits is concerned, w ill be solved if th ey w ill reduce th e ra te of in te re st on tim e deposits to a p o in t w here th ey can afford to ac cept such deposits. It certain ly has solved th e problem for us.” NEBRASKA NEW S NOTES (C ontinued from page 17) tional B ank in Johnson, rep o rts busi ness good a t his institu tio n , b u t w ould like to see a little m ore dem and for loans. A nother cen ter of feeding opera tions is T ecum seh, w here .1, V. J o h n so n is presid en t of th e only b ank in th is city of 2,200. T ecum seh is a tow n w here th ere are no vacan t store build ings—every location is occupied, and ap p aren tly th ese m erch an ts are doing a good business since Mr. Johnson says th ere is v ery little dem and for city loans. H ow ever, his b ank has m ore th a n $300,000 in loans, m ostly to farm ers for feeding livestock. W . A . S te in a u e r , cashier of th e B ank of S teinhauer, is largely in terested in finding out w h a t is going to happen to banks and b an k ers several y ears hence w hen th e p a rty is all over and th e N ew Deal orch estra leaves th e platform , and w ith o u t doubt th ere are o th er ban k ers in th is U. S. A. w ho w ould like an an sw er to th e sam e question. B ut th e B ank of S teinauer has been doing business in th e same location since 1888, so it’s likely they know a few of th e answ ers, a t least. Fifty-nine y ears ago, w hen H . C. V an H o r n e , ch airm an of th e board of the F arm ers State B ank of Paw nee City, cam e to th a t tow n it h ad a population of 2,000—now th e census reads about 1,500, and th a t is w h y Mr. V an H orne believes th a t g eneral business in th e sm aller com m unities, and th a t includes the b an king business, w ill n ev er again reach th e volum e attain e d a few y ears ago. T he sm aller tow ns are all di m inishing in population, w ith the young folks especially going to th e larg er centers in search of em ploy m ent. The tre n d now looks like it m ight be as Mr. V an H orne points out, b u t we th in k th e re w ill alw ays be a place in th e sm aller tow ns and cities for a good bank, efficiently operated, such as th e F a rm e rs S tate is. M. K. V a n H o r n e , presid en t of th e bank, w as on a p h easan t h u n tin g trip w h en we called. W e found F . H . O b erm an n , cashier of th e State B ank of B urchard, com pleting plans for a corn picking contest w hich w as to be held on October 24th n o rth of his city. Mr. O berm ann, pres id en t of th e B uchard Com m ercial Club, is also active in prom oting th e picking contest, w hich we u n d erstan d is m ore or less of an an n u al affair in Paw nee county. T en co n testan ts h ad reg istered up to October 16th, and th e y w ere to (T u rn to page 20, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 NEBRASKA NEW S NOTES (C ontinued from page 18) com pete in a field estim ated to yield 60 bushels to th e acre. Cash prizes w ere aw arded at th is “bang-board” derby, and th e w in n er w as to p articip ate in the state contest later in th e m onth. D efense program activities affect, but cannot change, the ancient formula of bank earn ings: in com e m in u s ex p en se. A g r e a te r v o lu m e o f cr e d it in str u m e n ts m ay r e fle c t in creased income, but as industry q u ic k e n s its pace, th e r e su lt will be more checks and thus more expense. A s c o sts r ise , see to it th a t you r ite m s en jo y th e advan tages of a service that is both efficient and economical. . . . THE . . . P H IL A D E L P H IA NATIONAL BANK ORGANIZED 1803 PHILADELPHIA, PA. Capital, Surplus and Undivided Profits $ 45, 000,000 M em ber of Federal D eposit Insurance Corporation Northwestern Banker Novem ber 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Speaking of corn, w hite, yellow, h y brid, etc., we saw several top-notch ears in th e Citizens State B ank in Paw nee City. Several farm ers had bro u g h t in sam ples to .1. A . B arr, cash ier, and he had them on display in the lobby of th e bank. T here w ere several v arieties of hybrid, as w ell as big, stu rd y ears of w hite corn, and if these sam ples are an indication of th e Paw nee county corn crop, farm ers in th a t com m unity w ill have some spend ing m oney th is fall and w inter. The ph easan t season opened about the m iddle of October in N ebraska, and of course m any ban k ers w iped th e ru st out of th e old shotgun and hoped to get th e ir lim it. B ut some w ere after bigger gam e, as we discovered w hen we called a t th e B eatrice N ational B ank and w ere told by W . W. C ook, a ssistan t cashier, th a t his father, D. W . C ook, vice president, and one of the b an k directors, D . S. D a lb ey , w ere w ith a p a rty doing some real h u n tin g and fishing a t H ansons Camp, N ester Falls, O ntario, Canada. F ish in g w as for lake tro u t, and th e h u n tin g included deer, ducks, and partridge. T he p a rty w as to spend tw o w eeks in Canada, and expected to re tu rn to B eatrice about October 23rd. H . A . Reeves, cashier of the F irst N ational Bank, B eatrice, show ed us th e new in terio r decorating w hich w as about com pleted in his bank. The b ank h ad already installed new fix tures, air conditioning, and fluorescent lighting th ro u g h o u t th e lobby and offi cers’ q u arters, th e w hole m aking a m ost a ttractiv e im provem ent. The n ex t tim e you are in Lincoln, if you h av en ’t been th ere recently, take a good look a t th e C ontinental N ational B ank B uilding, and we doubt if y o u ’ll recognize th e corner—at least we d idn’t. The building proper for the four floors above th e street has been faced w ith square w hite lim e stone blocks, and th e stre e t floor, or bank proper, w ith black granite. The pillars and cap at th e bank entrance are bronze, and th e large w indow s on each side have been filled w ith glass brick. The in terio r of the b an king room, including the personal loan depart(T u rn to page 42, please) Can A Gift or Revoked by TEW A R T, a M innesota ban k er, de livered to his atto rn ey , E isen h ard t, certain b e a re r bonds for re-delivery to his, S te w a rt’s, d a u g h ter as a gift. The d au g h ter acknow ledged and ac cepted th e gift, b u t did not pick up th e bonds at E is e n h a rd t’s office, as she p re fe rred to leave th em in his safe u n til she could arra n g e for a safe-deposit box for them . W hile th e bonds w ere in E ise n h a rd t’s safe Stew a r t attem p ted to revoke th e gift. Could he do so? S N o. A c o m p le te d g if t c a n n o t b e r e v o k e d b y th e d on o r. H e r e th e b o n d s had b e e n m ad e th e su b je c t o f a g ift an d th e g ift h ad b e e n a c c e p te d b y th e d o n ee. T h e d o n o r co u ld n o t th e r e a fte r r e v o k e it. Suppose th a t in th e preceding ques tion S tew art h ad set up a tru s t for his d au g h ter w ith o u t h e r know ledge and h ad delivered into th e tr u s t cer ta in bonds. A ssum e fu rth e r th a t th e delivery w as com plete and w ith o u t any strin g s attach ed to it. Could S tew art th e re a fte r revoke th e gift? N o. A tr u s t crea ted by d e liv e r y o f p r o p e r ty to a th ir d p e r so n is v a lid a lth o u g h th e b e n efic ia r y h a d n o n o tic e o f it. P r e v io u s n o tic e to th e b e n e ficia ry o f th e c r e a tio n o f a tr u s t is n o t n e c e ss a r y . Black w as appointed g u ard ian of H erndon, a m inor, in South Dakota. A few days a fte r H erndon becam e of age, Black settled his accounts w ith him an d obtained a release from him . In obtaining th e release B lack did not m ake a full disclosure of his dealings w ith H ern d o n ’s p ro p e rty and sh o rtly th e re a fte r H ern d o n discovered he had been d efrauded by Black and sued him . In such circum stances w ill th e courts be len ien t in co n stru in g th e re lease ag ain st H erndon? Y es. T h e c o u r ts lo o k w ith d is tr u s t u p o n s e ttle m e n ts m a d e b y g u a r d ia n s w ith w a r d s r e c e n tly c o m in g o f a g e. F ro m th e co n fid e n tia l r e la tio n b e tw e e n th e m it w ill b e p r e su m e d th a t th e w a r d w a s a c tin g u n d e r th e in flu e n c e o f th e g u a rd ia n , and a ll tr a n s a c tio n s b e tw e e n th e m p r e ju d ic ia lly a ffe c tin g th e in te r e s ts o f th e w a rd w ill be h eld c o n s tr u c tiv e ly fr a u d u le n t, and w ill be These and Other Timely Legal Questions Are Answered By the LEG A L DEPARTM ENT s e t a sid e u n le s s s h o w n to h a v e been th e d e lib e r a te a c t of th e w a r d w ith fu ll k n o w le d g e o f th e tr a n sa c tio n . M ahl died in N ebraska leaving a w ill th a t established a sp en d th rift tr u s t of w hich his son w as th e bene ficiary. The tru st, by its term s, pro vided th a t th e principal should go to th e son if he procured a discharge in b a n k ru p tcy from all his liabilities. He pro cu red such a discharge. His cred itors sought to subject th e principal to th e p ay m en t of th e ir claims, asserting th a t th e sp en d th rift tru s t w as void as ag ain st public policy. Should th ey prevail? N o. A te s ta to r is n o t g u ilty o f fra u d or a n y o th e r a c t a g a in s t p u b lic p o lic y if h e p r o v id e s, a s a c o n d itio n to th e v e s t in g o f h is e sta te , th a t th e b e n e ficia ry fir st o b ta in a d isc h a r g e from h is lia b ilitie s in b a n k r u p tc y . T h e t e s ta to r o w e s n o d u ty to th e b e n e fic ia r y ’s c r e d ito r s an d th e y h a v e n o r ig h t to c o n te s t th e p r o v is io n s e sta b lis h e d b y h im . T u rn ey bought certain land in M ich igan at a foreclosure sale w ith o u t ex am ining th e public records to see if th e re w ere any liens®against th e prop erty. It so happened th a t th ere w as a second m ortgage, duly recorded, ag ain st th e p ro p erty th a t had not been affected by th e foreclosure suit. Did T urney, in m aking his purchase, re ceive th e land subject to th e second m ortgage? Y es. T h e se c o n d m o r tg a g e , d u ly r e cord ed , w a s n o tic e to th e p u r c h a se r o f th e in c u m b e r e d la n d th a t h e to o k s u b je c t to th e se c o n d m o r tg a g e lie n . B y r e a so n o f th is h is title w a s e n c u m bered b y th a t m o r tg a g e r e g a r d le ss of w h e th e r h e e x a m in e d th e p u b lic r ec ord s as an in c id e n t to th e p u r c h a se . A W ashington, D. C., b an k er em ployed a boy to clean his car. The boy, to g eth er w ith o th er boys, took it for a ride and accidentally w recked it on the w ay back. The boy had no in ten t of p erm an en tly depriving th e ow ner of th e car and, in a crim inal prosecution ag ain st him , w as convicted u n d er a sta tu te penalizing m erely th e tak in g of a car w ith o u t the consent of the ow ner. The b an k er carried a policy of insurance on th e car protecting him ag ain st loss on account of theft. Could he recover u n d er such policy? Y es. U n d e r a r e c e n t d e c is io n b y th e U n ite d S ta te s C ourt o f A p p e a ls fo r th e D is tr ic t o f C olu m b ia it w a s h eld in a c a se in v o lv in g fa c ts su b s ta n tia lly s im ila r to th o se o u tlin e d in th e q u e stio n th a t th e p o lic y w a s b road en o u g h to c o v e r th e lo s s su s ta in e d b y th e b a n k er. It is in te r e s tin g to n o te th a t in a fa ir ly r e c e n t ca se in v o lv in g A ery sim ila r fa c ts, th e S u p r e m e C ourt o f M in n eso ta h eld to th e c o n tr a r y . An Idaho b an k er ow ned certain an tique jew elry th a t he had insured ag ain st “all direct loss or dam age by fire.” The jew elry w as in ad v erten tly p u t into a tra sh in cin erato r an d th ere burned. Could th e b an k er recover u n d er th e policy? N o. A lo s s o f in s u r e d p ro p erty , th r o u g h b e in g in a d v e r te n tly p u t in to a tr a sh in c in e r a to r and th e r e b u rned, is n o t c o m p e n sa b le u n d e r a p o lic y in su r in g it a g a in s t “all d irect lo s s or d a m a g e b y fire.” T h e w o rd “fire”, as u sed in fire in s u r a n c e p o lic ie s, h a s a w e ll-se ttle d m e a n in g o f a “h o s t ile ” fire a n d , sin c e th e fire in q u e stio n Avas a “fr ie n d ly ”, r a th e r th a n “h o s t ile ”, fire, a r e c o v e r y aa ill n o t be p e rm itted . A M ichigan b an k er w as also the agent for an insurance com pany. As such agent he collected certain in su r ance prem ium s w hich he failed to re m it to his principal. S ubsequently he w en t th ro u g h b an kruptcy. Did such action on his p a rt discharge him from liability to rem it the prem ium s? N o. P r e m iu m s c o lle c te d b y a n a g e n t fo r a n in s u r a n c e c o m p a n y are r e c e iv e d a n d h e ld b y th e a g e n t in a fid u ciary c a p a c ity . A debt w h ic h a r is e s ou t o f a fid u cia ry r e la tio n sh ip in e x is te n c e at th e c r e a tio n o f th e d eb t, w h ic h Avas th e c a se h ere, is e x e m p t from d is ch a r g e in b a n k r u p tc y . Northwestern Banker Novem ber 19M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22 T rained and C apable HELP SERVICE MEN A lw a y s R ea d y to S erve You ■ W estern M utual A gents b u ild b u s i n e s s m ore e a s i l y w ith th e h e l p of t r a i n e d a n d c a p a b l e field s e r v i c e m en , w illing, a n x i o u s a n d a b l e to s e r v e you. T his E X T R A SERVICE can m ean in creased agency production fo r yo u . ■ L e g a l R e s e r v e —N o n A s s e s s a b l e F ir e and A u t o Policies. S t a n d a r d P o li c y F o r m s . W estern M utual F i r e I n s u r a n c e Co. 9th and Grand Des Moines, Iowa "O ve r a Third of a Century of Sa fety and Se rvice With Savings" Northwestern Banker Novem ber 19kl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sm ith and Brow n, as com akers, ex ecuted a prom issory note in favor of a b ank in P ennsylvania. It w as n ot paid w hen it cam e due. T he b an k sued on it afte r th e sta tu to ry period of lim ita tions had ru n from its due date. At th e tria l th e com akers defended on th e ground th a t th e sta tu te of lim ita tions had ru n , and in response to such defense th e b an k asserted th a t such w as n ot th e case because one of the com akers h ad agreed to pay h alf if th e o th er com aker w ould pay th e bal ance. T he b an k proved th e agreem ent by th e com aker to pay as outlined but it could n o t prove th a t th e rem ainder had been paid by th e o th er com aker. Should th e b an k prevail? No. A prom ise by one of tw o co m akers of a note to pay h alf of it if th e other com aker w ould pay the other h alf is, w h ere the oth er com aker n ever paid his share, not effective to toll the statu te of lim ita tio n s. A conditional prom ise to pay w ill n ot rem ove the bar of the statu te of lim itation s u n less the condition is perform ed. A corporation form ed u n d er the law s of a n o th er state, duly qualified to do business in M innesota as a for eign corporation. S ubsequently it ceased to do business th e re b u t in doing so it, as req u ired by statute, irrevocably appointed certain state officials its agents for service of pro cess in actions arising from its Min nesota business. Jo rd a n sued th e cor poration on a claim he had against it afte r it left th e state. T he su it w as filed afte r th e sta tu te of lim itations h ad ru n b u t Jo rd an asserted th e sta t u te could n ot be invoked as a defense because of th e com pany having left th e state. W as such assertion correct? No. A foreign corporation w hich has ceased to do b u sin ess in M inne sota and w ithd raw n therefrom except that, in obedience to statu te, it has left there a co n tin u in g agen t for personal service of process in actions arising from its M innesota b u sin ess is, in con tem plation and as a resu lt of law , con tin u o u sly p resen t there for service upon it in su ch actions. It follow s th at the ru n n in g of the statu te of lim itation s is not tolled by its quali fied departure from the state. —TH E END. C . of C . Treasurer Leslie McMahon, vice p resid en t of th e City N ational B ank and T ru st Com pany of Chicago, w as elected tre a s u re r of th e Illinois Cham ber of Com m erce a t th e ir an n u al m eeting held last m onth in Chicago. Mr. McMahon w as also re-elected a d irector for a tw o y ear period. Can Your Prospect Tell You How Much Is Enough? G OOD afternoon. I d id n ’t stop in to sell you an y life in su ran ce today, because I d o n ’t know th a t you need or w a n t additional life in s u r ance—and even if you did—it w ould be p resu m p tu o u s on m y p a rt to feel you w ould w a n t to pu rch ase it from me. H ow ever, if I m ay have th e p riv ilege of v isitin g w ith you for a few m om ents—and if I can give you some ideas th a t you can use now or in th e fu tu re —is th e re any reason w hy I couldn’t have y o u r business? If you knew definitely th a t today w as th e last day you w ere going to be alive—how m uch life insurance w ould you buy? I have asked several th o u san d m en th a t sam e question b u t have n ev er received th e sam e an sw er twice. Some m en say th e y w ould like to b u y a t least a h u n d re d th o u san d — som e a h alf m illion, b u t you and I know th a t life in su ran ce cannot be purch ased prom iscuously, b u t m u st be purch ased in accordance w ith a m a n ’s needs and his ab ility to pay. The ques tion is, H ow m uch is enough? Not life in su ran ce—b u t incom e producing property. Before we tr y to answ er th a t le t’s tak e a fast m oving pictu re of y o u r fam ily. You w ere b o rn in w h a t m onth? Day and year? Y our w ife is y o u n g er or th e sam e age? You have how m an y ch ild ren —w ho is th e eldest? F ro m th e stan d p o in t of our discus sion today you are dead and buried. T he fu n eral w as held y e sterd ay and today y o u r w ife is going to atte m p t to find out w h ere she stands econom ically, b u t I ’m going to give you a privilege today th a t w ill n o t be given you w h en y o u r tim e actu ally comes. I ’m going to give you th e privilege of discussing y o u r w idow ’s m inim um needs and th e b eau ty of th is is th a t if we find som e th in g s th a t need changing, you can do it now. I have a definite resp o n sib ility to th e people I serve because if you and I don’t do th is now, y o u r w idow w ill hav e to do it la te r and at th a t tim e she w ill not have you to counsel w ith and w hoever assists h e r m ay n o t have h e r b est in te re sts a t h e a rt and th en , too, a t th a t tim e if th in g s are n o t as th e y should be, no changes can be made. By Lowell P. Schwinger N o rthw e ste rn Mutual Life W ate rloo, Iowa If every p r o s p e c t w ould answer that question hon estly, and then act acco rd ingly, the job of life insur ance selling would be much easier The critical y ears for y o u r fam ily are th e n ex t five years. W h at is th e least am ount of m o nthly incom e your w ife w ould req u ire to provide th e ac tual necessities of life—food, sh elter and clothing? In arriv in g a t th e m inim um incom e don’t forget th a t th is is to be a n et incom e—th ere w ill be one less in th e fam ily to feed and clothe—you w ill not be here—th e re w ill be no expenses incidental to y o u r w ork and n eith er w ill th ere be any life in su ran ce p re m ium s to pay. In y o u r estim ation th e irreducible incom e to y o u r w ife du rin g th e critical period m u st be $200 p er m o n th —is th a t right? Now, n atu rally , you and y o u r wife have alw ays planned on college educa tions for your th re e children. A college education is needed m ore th a n ever today to enable one to com pete in a w orld w here com petition is to u gher each year. You know w hen I grad u ated from high school in a sm all tow n, th a t sam e y ear th re e boys from th is little tow n g rad u ated from a u n i v e rsity and rated a headline in the w eekly gazette, b u t ten years later eight young people from th is sam e com m unity grad u ated from colleges and u n iv ersities and th e gazette gave th em one colum n tw o inches long on th e back page. The am ount of incom e each of your children w ill need to go th ro u g h col lege w ill depend som ew hat on the course th ey tak e and w h at school th e y attend. A bout w h at am ount in p lan ning did you and y o u r w ife figure each child’s college req u irem en ts w ould be? I th in k y o u r figures for a m inim um of $3,000 for each child is w ith in reason. Now, th e children are on th e ir own —going to college—w ith m inim um in come provided. N aturally, you w ould desire for y o u r w ife an incom e for th e balance of h er life. H ow m uch is th e least she should have each m onth as long as life lasts so th a t she can con tin u e living on in th e sam e su rro u n d ings am ong h er friends w here she can m ain tain h er own hom e so th a t th e children can come back to v isit w ith m o th er on E aster, M other’s Day, T hanksgiving and C hristm as, and later w hen th e children have fam ilies of th e ir ow n th e kiddies’ big m om ent w ill be going to spend th e holidays w ith grandm a. In order to m ake all of th is possible, w h a t w ould be th e least she w ould have to have or th a t you w ould w a n t h e r to have? You feel th e n th a t th e least she should have is $100 p er m onth—is th a t right? W hen a w idow has arran g ed h er budget for income, w h at is th e next step she m u st take? Isn ’t is tru e th a t she m u st know w h at th e actual im m e diate cash req u irem en ts are so th a t she can s ta rt out w ith a clean slate. Is th ere a balance on th e hom e?— $4,000—Are th e re any o th er obliga tions? $5,000—The average expense of last illness and fu n eral in the U nited States is $1,300. T h at of course is problem atical because if you are confined to a hospital for several m onths before death it w ould take considerably more. H ow ever, if you w ent hom e w ith pneum onia and died tw o days later th ere w ould be consid erably less expense—w h at in y o u r estim ation is an average am ount we should figure on? T h a t’s rig h t you nev er can tell—-$1,500 is a v ery fair figure. W hen a w idow has arran g ed h e r budget for incom e and know s how m uch th e im m ediate cash re q u ire m ents are, w h at is th e n ex t step she m u st take? Isn ’t is tru e she m u st go over to th e lock deposit box to find out w h at th e re w ill be to do these (T u rn to n ex t page, please) Northwestern Banker Novem ber 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24 Holds A n nual Agency Convention A GENTS of th e W estern M utual F ire In su ran ce Com pany of Des Moines held th e ir an n u al agency con vention last m o n th in Des Moines and alm ost 600 agents and th e ir w ives w ere in attendance. The delegates re p re sented Iowa, N ebraska and South Da kota, th e th ree states in w hich the W estern M utual operates. H ighlights of th e convention w ere th e an n u al ban quet, at w hich R obert B urlingam e, as sista n t new s editor of Radio Station WHO w as th e speaker, and the closing luncheon session a t w hich F. F. Faville, form er chief ju stice of the Iowa Suprem e Court, w as the principal speaker. J. D. K ent, chairm an of the board of the W estern M utual, presided a t th e business sessions. T he W estern M utual F ire is one of th e o u tstanding fire com panies in the m iddle w est and is now in its 34th year. The com pany is experiencing a steady gro w th in volum e of business in all of th e th ree states in w hich it operates. In addition to C hairm an K ent, offi cers of the com pany include P resident C harles S. Vance, Vice P resid en t J. M. Piper, S ecretary G. S. Blount, and T re a su re r Jo h n M ueller. H O W M UCH IS EN O U G H ? (C ontinued from page 23) A bove, le f t to r ig h t: “ A l” Adams, o f th e H om e Office; Glenn S. B lount, se c re t a r y ; F. F. Faville, fo rm e r C h ief J u s tic e o f th e Io w a S u p rem e C ourt, w ho w as th e p rin c ip a l sp e a k e r a t a lu n ch eo n session o f th e W e s te rn M u tu a l C o n v e n tio n ; J. D. K ent, c h a irm a n of th e b o a rd , a n d Charles S. Vance, p re sid e n t, o f th e W e ste rn M u tu a l F ire . B elow , on le ft, W. W. Vollmer, local a g e n t a t A m es; Glenn H orton, sp e c ia l a g e n t, W a te rlo o ; M arvin Graves, of th e D ik e A gency, D ik e ; a n d L. E. A. Johnson, local a g e n t a t Sioux C ity. B elow , rig h t, sn a p p e d a t th e b a n q u e t w hich w as a tte n d e d b y m ore th a n six h u n d re d . A D em onstrated F act — "A llied Mutual P a y s " Our slo g a n is rea lly more than a slo g a n — it is a fact dem onstrated over a th ousand tim es e a ch m onth. A g en ts and p olicyh old ers alik e a p p recia te this prompt, fair, con sid erate claim service. It builds friends. ALLIED M U T U A L CASUALTY An Agency Company — Assets Over $4,000,000 Harold S. Evans, President ★ ★ ★ ★ ★ ★ ★ Northwestern Banker Novem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des Moines, Iowa ★ ★ ★ ★ EMPLOYERS MUTUAL CASUALTY COMPANY DES MOINES COMPANY Hubbell Bldg. things w ith. W h at w ill she find there? U nderstand, a n y th in g you and I dis cuss is absolutely confidential, and don’t forget th a t th e life insurance dollars are going to be th e sam e kind of dollars she w ill get from govern m en t bonds or any o ther holdings you m ay have. How m uch life insurance w ill she find? P len ty —w ell th a t certainly is fine—how m uch is th a t—$15,000— well th a t certain ly is g ran d —now w h at else w ill th ere be—any m o rt gages, bonds, stocks? Oh, you have stock in yo u r com pany? Does th is stock have a ready m ark et generally, and on to day’s m ark et or an average m ark et w h at w ill she be able to realize on this stock? $10,000—th a t is the ex te n t of yo u r holdings—right? Now I told you w hen we started th a t for our in te n t and purpose today th a t you w ere dead and buried, b ut I w as only fooling because on the law (T u rn to page 28, please) ★ ★ ★ • Automobile Insurance • Workmen’s Compensation • General Liability • Elevator Insurance • Plate Glass Insurance 25 The Month’s Market Maneuvers S u b stan tial Germ an gains along the v a st R ussian I *f front, a stepping up of w ar production in t h i s country, / / the tor])edoing of A m erican boats, a B Mi. MM fight in C ongress to am end th e neutraljam es h . clarke act, priorities, inflation, h ig h er taxes, price controls, strik e s and m ore strik e s—th ese and m an y o th er th in g s served to jum ble the p ictu re in October. A nd th e stock m a rk e t—a sensitive b aro m eter—sold down. iHPPpp i l ^ ^ g W e are w ritin g this article T uesday m orning, October 28 to m eet our to m o rro w ’s deadline. T here are—in cluding today— still fo u r trading days in the m o n th — but it seem s u n lik e ly tha t m u ch can happen to change the trend of the m o n th ’s developm ents. There have been tw en ty-tw o days of trading in October’s m a rk e ts— gains w ere registered eight tim es w hile on fo u rteen days losses resulted. A lm o st all of th e losses toere closely tied in w ith the w ar n e w s— R u ssia n reverses. T he day the Japanese cabinet fell prices broke about tw o points. B u t there w ere oth er causes— yesterd a y w h e n the A m erican Tobacco C om pany announced a cut in its dividend rate, the m a rk e t averages broke over a poin t— and A m erican Tobacco stock itse lf dropped 9% points. A p p a re n tly , those w ho have fe lt th a t the m a rket has already discounted dividend cuts are m istaken. T h e D o w -J o n es a v e r a g e s fo r in d u s tria l sto c k s p r o v id e a g o o d y a r d stic k to m ea su re th e p rice c h a n g e s d u rin g th e m o n th . On S e p te m b e r 30, th e a v e r a g e Avas 126.79— b y O ctob er 16 it h ad d rop p ed to 118.52— y e s te r d a y ’s c lo s e o f 119.43 sh o w e d b u t s lig h t rec o v e r y . T h e m a r k e t, in o th e r AAords, is n o w back to th e le v e ls w h ic h p r e v a iled in J u n e — a n d th e su m m e r rise, b a sed la r g e ly on G er m a n y ’s fa ilu r e to c o n q u e r R u ssia q u ic k ly , h a s b e e n era sed . S o m e sto c k s h a v e fa red m u ch AAorse th a n th e m a r k e t itse lf. B e th leh em S te e l, Avhich so ld a t 74 th e la st w e e k in J u n e , tr a d ed a t 62 y e ste r d a y , IT. S. S te e l w a s off fiv e p o in ts in th e sa m e period; w h ile W e stin g h o u se , w h ic h offered sto c k r ig h ts, Avas off th e su b s ta n tia l a m o u n t o f 2314 p o in ts— fro m 95 in J u n e to 714/2• O11 th e o th e r Prepared for The Northwestern Banker By Jam es H . Clarke A ssista n t Vice President A m e ric a n Na tio nal Bank & Trust Co. C hica go h an d , th e oil sto c k s Avhich have a cted Avell in th is m arket—T exas C om p an y, for in sta n c e , Avas 39 in Ju ne is now 44— Standard Oil of N cav J ersey Avas 40 is noAV 43— S k e lly Avas 29 is n ow 35, etc. T he oil com panies w ith th eir la r g e ca p ita l in v estm en ts appear to be in a favorable ta x position. No analysis of a corporation’s possi bilities in the days to come w ill be of value w ith o u t a com plete stu d y of its ta x problem . Taxes have already reached a point w here in num erous cases large increases in gross business have been m ore than offset by the new taxes— and the trend is to even larger taxes. So, despite inflation— stock prices w ill be ham pered and dividends low er if the G overnm ent siphons off increasingly larger am ounts. W h ile in fla tio n fe a r s are su p p o se d to d istu r b b ond p r ic e s, th e r e Avere no e v id e n c e s o f su c h a d istu r b a n c e in O ctober. G o v e r n m e n t b o n d p rices w e r e h ig h e r d u r in g th e m o n th in th e fa ce o f a n o ffe r in g o f T r e a su r y 2 / 2’s d u e in 1972 to r a ise $1,200,000,000 in n e w m o n e y — an d w ith fu ll k n o w le d g e th a t M o r g e n th a u h a s p la n s fo r m u ch m ore to co m e. M u n ic ip a l b o n d s c o n tin u e d to se ll on a v e r y lo w y ie ld b a sis a s iiiA esto rs, b oth in d iv id u a ls an d in s titu tio n s , s o u g h t th e b e n efits w h ic h ta x e x e m p tio n s p r o v id e. R a il road b on d s o f a sp e c u la tiv e q u a lity — p a r tic u la r ly th o s e o f ro a d s w h ic h are b e in g r e o r g a n iz e d — e n jo y e d b e tte r m a r k e ts d u r in g th e m o n th . A p p a r e n t ly , n u m e r o u s in v e s to r s w h o fo r m e r ly p u r c h a se d sto c k s are fin d in g som ew h a t b e tte r v a lu e s in seco n d -g ra d e ra il b o n d s— in th is p erio d o f sh a r p ly b e tte r ra ilro a d e a r n in g s. So lo n g as th e u n s e ttle d w a g e c o n tr o v e r s y oArerh a n g s, h o w e v e r , b u y e r s Avill be c a u tio u s in th is m a r k e t— a n y AAage d e c i sio n o f le s s th a n a 10 p er c e n t in c r e a se or o n e Avhich is tie d in w ith th e slid in g sc a le o f liv in g p ro b a b ly w o u ld be in te r p r e te d a s b u llis h b y th e m a r k e ts. Outside of th e T reasu ry offering, very little new financing came into the m ark et d uring th e m onth. The larg est issue—$38,000,000 of C entral Illinois Public Service 3% ’s of 1971— w as offered today, and it is too early to accurately appraise its reception. C onsidering th e price of 107 and the yield of about 3.02, it seem s a fair as sum ption, how ever, th a t th e bonds w ere not a rio t m arketw ise. Beneficial In d u strial Loan C orporation has ju st offered $10,000,000 of D ebenture 2 %’s of 1956 at 100. T here are still bonds available as we w rite th is—th e sales ap p aren tly being a bit slow. T here w ere one or tw o o ther sm all offerings in th e p ast four weeks, including $5,600,000 of Gulf P ow er Com pany 3%’s of 1971—priced at 103 to yield 2.96 per cent. T oday’s W all S treet Jo u rn al carries a bid of 102% for these bonds. R eports of the Securities and E x change C om m ission do n ot indicate now that n ew financing w ill pick up m u ch in N ovem ber. I t is likely that Philadelphia E lectric Com pany w ill sell $20,000,000 of F irst M ortgage 2 %’s of 1971 if the m a rkets are right. F lor ida Pow er and L ig h t, Illinois C om m er cial Telephone Com pany and Cham p ion Paper and Fibre Com pany also have financing plans— if the m a rkets are satisfactory. The daily sta tem en ts of the T reas ury indicate that exp en d itu res for N a tional D efen se are averagin g b etw een fifty and six ty m illion s a day—w ith the trend upw ard. A t th is rate, the goal of tAvo billion s per m onth is now in sig h t—and additional financing w ill be n ecessary late in N ovem ber or early in D ecem ber. Since the A dm in istration does not exp ect the land forces to be fu lly arm ed u n til 1943 and the tw o-ocean n a v y to be ready u ntil 1946, it is easy to see that our debt can easily m ultiply íavo or three tim es. A nd yet in th ese days of m anaged m oney m arkets w ith the T reasury the only big borrow er, it is difficult to fore see any set of circum stances w hich w ill upset the G overnm ent’s plans. A 11 actual declaration of w ar aaou W be disturbing, and a com plete collapse in R ussia w ould hurt—but by and large, the dem and for m edia of inAestm en t for incom e still seem s to out w eig h the natural reluctance to buy bonds in these uncertain tim es. Northwestern Banker Novem ber 1911 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 26 Central National Bank in Chicago Celebrates Fifth Anniversary V E R 13,000 custom ers and friends of C entral N ational B ank in Chi cago helped th em celebrate th e ir fifth an n iv e rsa ry in an open house celebra tion held in connection w ith th e form al opening of th e ir new ly enlarg ed q u a r ters last m onth. F ro m a one floor b an k opened in October, 1936, w ith deposits of $300,000, C entral N ational B ank m ade tr e m endous strid es to reach th e ir p resen t deposits of over $20,000,000 in five O GENERAL V MOTORS sh o rt years. T h eir phenom enal grow th has been a ttrib u te d to th e m any p e r sonalized services ren d ered to th e de positors of th e b an k — services th a t g rew from th e policies in stitu te d by th e p resident, Carl F. K uehnle. H u ndreds of baskets of flowers from custom ers, friends and o th er banks, bedecked th e m ain and th e new sec ond floor. T he b an k q u a rte rs w ere rem odeled to include a second floor th a t w as p re ACCEPTANCE I ■" i / CORPORATI ON % ■ is engaged primarily in facilitating wholesale distribution and retail sales of the following products of General Motors Corporation and its world-wide affiliates: CADILLAC, BUICK, OLDSMOBILE, PONTIAC, CHEVROLET automobiles; f r i g i d a i r e appliances for refrigeration and air conditioning; DELCO lighting, power and heating equipment; g m c trucks; B e d f o r d , v a u x h a l l and other foreign made automotive vehicles. The business consists of investments in self-liquidating credits, widely diversified as to region and enterprise, capital employed being in excess of $80,000,000. In obtaining short term accommodation, g m a c issues one standard form of note. This obligation it offers to banks and institutions, in convenient maturities and denominations at current discount rates. GENERAL MOTORS INSTALMENT PLAN These notes are available, i n limited amounts, upon request. EXECUTIVE OFFICE N E W YORK Northwestern Banker Novem ber 19H https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis viously used by outside businesses and th e addition of th e second floor v irtu ally doubled th e space given each divi sion. Today th e b an k is handling an av er a g e ‘of 100,000 item s p er day, w hich is an o th er indication of th e fact th a t this is a real “service in stitu tio n .” F rom am ong th e very fine personnel in the ban k are m any officers w ho orig- BRANCHES IN PRINCIPAL CITIES CARL F. K U E H N L E inally came from Iowa. These include Carl F. K uehnle, president, from Deni son; H arold H. Stout, vice president, from Fairfield; K arl E. W ehrly, senior vice president, from D ubuque, and A rth u r A. E llerd, a ssistan t to th e p res ident, from Sioux City. L eroy A. Listug, executive vice president, did not come from Iowa, b u t he is n ex t door neighbor, as he cam e from Illinois. A ccording to th e latest figures, the C entral N ational B ank now is in th e u pper 3 p er cent in volum e of business am ong th e n atio n ’s 14,000 banks. Elevated to Presidency W ith th e h ighest re g istratio n ever recorded for a n ational m eeting, th e final session of The N ational Associa tion of B ank A uditors and Com ptroll ers C onvention closed last m onth in Chicago. C. W. B orton, a ssistan t vice president, Irv in g T ru st Company, New Y ork City, w as elected to th e p resi dency, to succeed C harles Z. Meyer, com ptroller, T he F irs t N ational B ank of Chicago. Mr. B orton has been active in th e affairs of both th e N ew Y ork City con ference and th e national organization for a nu m b er of years. F ro m 1932 to 1938 he w as a n ational com m itteem an in th e second district. A t th e H ouston convention in 1938 he w as elected to 27 natio n al office as se c retary -treasu rer and each y e a r since th a t tim e he has advanced th ro u g h th e v ario u s offices and now assum es th e top executive position. H e h as alw ays ta k e n a p ro m in en t p a rt in organizing new conferences. Since first becom ing a n atio n al com m itteem an he has seen th e n u m b er of local conferences doubled, th e nu m b er now stan d in g a t fifty. D uring his y ear as first vice p resid en t and as head of th e o rganization com m ittee, fo u r new conferences w ere established, includ ing one in M anila, P h ilip p in e Islands. Mr. B orton w as appointed assista n t au d ito r of Irv in g T ru s t Com pany in 1926 a fte r four y e a rs ’ service in th e com pany. He w as elected au d ito r in 1932 and a ssista n t vice p resid en t in 1939. Smith Iowa Representative Scarborough & Com pany, Chicago, in su ran ce counselors, announce th e ap p o in tm en t of H orace A. S m ith as re p rese n ta tiv e of th e firm in charge of th e sta te of Iowa. Mr. Sm ith is a fo rm er resid e n t of Iow a, is a g rad u ate of th e U n iv ersity of Iowa, and has recen tly 6 PER CEN T PROFITS (C ontinued from page 11) “I believe th a t Mr. M orgenthau m ust be th in k in g only of revenue and th a t he feels th a t anyone earn in g over 6% can m ore easily afford it th a n those w ho m ake less th a n th at. H ow ever, I do n o t believe in th is type of taxing. I believe th a t a stiffer grad u ated incom e ta x w ould be th e b e tte r w ay to raise his rev en u e.” “I am absolutely opposed to Mr. Morg e n th a u ’s proposal, as w h at object w ould th e re be to m ake any money? It w ould tak e th e incentive to m ake m oney aw ay from people and corpora tions, and th a t incentive is w h a t has m ade th is co u n try w h at it is. H ow ever, w e need ju st about one m ore half-cracked idea from th e New Deal ers as th is one is, and it w ould about finish things. I ju st w onder w hen it has gotten to be such a crim e to m ake som e m oney and be th rifty ? E v ery th in g else should be restricted by M or g enthau, and m ake sacrifices, except labor. T h at is about as consistent as he is, and as I see it, organized labor are th e w o rst offenders we now have and have been for th e p ast years. “F u rth e r, if we cannot accum ulate an y reserv e at th e p resen t good tim es, how can we do it w hen we are in an o th er depression and not m aking any m oney, w ith p len ty of losses, and su re ly you cannot accum ulate any reserve lim iting a corporation to 6%, as the BUY H O R A C E A. S M IT H Many Do “W hy w as Bill so u p set in th e b an k th is m o rn in g ?” “Oh, he ju s t lost his balance.” IN C O R P O R A T E D An Iowa banker: IOWA BANKS com pleted a tra in in g course in th e Scarborough hom e office in servicing b an k in su ran ce program s. Mr. Sm ith succeeds W ard Macfadden in th e Iow a te rrito ry , th e la tte r now being in th e S carborough office in Chicago in an executive capacity in charge of sales supervision. It is quite likely Mr. M acfadden w ill v isit Iow a occasionally d u rin g th e ad m in istratio n of his new duties. Mr. Sm ith w ill reside in Des Moines, w h ere Scarborough & C om pany m a in tain s offices in th e V alley B ank B uild ing. COMMERCIAL INVESTMENT TRUST Iowa FH A T itle II Insured Loans ■ • ■ C o m m e r c ia l I n v e s t m e n t T r u s t I n c o r p o r a t e d , with capital and surplus in excess of $66,000,000, provides a nation-wide sales finance service through subsidiary companies with a network of branch offices throughout the United States. This service, in the main, consists of p u r c h a s i n g self-liqui dating accounts, and ex tends to automobile dealers, household appliance dealers, and to manufacturers and dealers in many lines of in dustrial, commercial and professional equipment, in cluding the heavy goods in dustries. C. I. T . offers its stand ard notes for short term accommodation in varying am ou n ts from $1,000 to $100,000, in maturities from 60 to 270 days and at cur rent discount rates. T h ese notes are payable at any of our 315 depositary banks located in principal cities throughout the country. Iowa’s Oldest and Largest L a te st p u b lish ed fin a n c i a l FH A Loan Dealer statement and list o f depositary banks w ill be mailed upon request. ■ B ■ W r ite fo r o u r C u rre n t List Epperson & Co. F lem in g B u ild in g D es M oines Iow a ADDRESS Treasurer, Commercial Investment Trust Incorporated I P a rk A v e ., N e w York, N . Y. Northwestern Banker Novem ber 19hl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28 stockholders w ould w a n t this, w hich they are en titled to.” H O W M U CH IS EN O U G H ? (C ontinued from page 24) K. T. A ise n b r e y , c a sh ie r , B a n k o f of averages, you have a b e tte r chance A lp en a , S o u th D akota: “I am opposed for th e reason th a t this w ill not enable a b an k to build up a reserv e in case of an em ergency. Losses are bound to ap p ear w hen these m ark ets settle back and it m ay m ean an assessm ent on th e stockhold ers.”—T H E END. of living to re tire m e n t age th a n you have of dying and if you w ere select ing a re tire m e n t age today w hich of th e th ree univ ersal re tire m e n t ages w ould you select—age 55, 60 or 65? In o th er w ords, you feel th a t age 60 is ju s t rig h t—not too early—and not too late w here you w on’t have tim e to enjoy the fru its of your labor— B O N D S Public U tility In dustrial R a ilro a d M unicipal A.C A L L Y N an d c o m pany Incorporated 100 W e s t M onroe S tr e e t, C h ic a g o N e w Y ork R e p r e s e n t a t iv e s : M ilw a u k e e W a t e r lo o O m aha D e s M oin es B o sto n C edar R a p id s Shaw, McDermott & Sparks Investment Securities Suitable for Investment of Banks, Institutions and Trust Funds fl 914 Liberty Bldg. DES Phone 3-6119 MO I N E S . Northwestern Banker Novem ber 19'tl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IOWA right? At age 60, w h at is th e am ount of incom e you feel you will have to have to p erm it y o u r wife and yourself to do th e th in g s you have planned? You feel $200 w ill do th e job nicely, right! Do you know the pension pow er of y o u r p resen t ow ned life insurance a t age 60? W h at I m ean by pension pow er is how m uch p er m onth the cash values of the life insurance you now ow n w ill provide u n d er the term s of th e contracts. It is not u n com m on for m en like you in responsi ble positions w ho are busy every m o m ent of th e day to be uninform ed on th e pension pow er of y o u r insurance. H ow ever, this is one of m y duties to advise you, and if I m ay exam ine yo u r policies for a few m om ents, I w ill take dow n th e data I need to supply you w ith th is inform ation or I can give you a receipt for your pol icies and g ath er facts to g eth er in m y office. T h ank you for having th e sere ta ry get th em —here is y o u r receipt. If is w ere possible th a t you could find a plan th a t w ould enable you to dism iss from y o u r m ind for all tim e the tw o g reatest hazards of life—the hazard of living too long—you th o u g h t I w as going to say die, b u t if you look around you th e m en and w om en you know personally w ho du rin g th e m a jor p a rt of th e ir lifetim e w ere self su stain in g and today are dependent on friend, relatives or charity, I believe you w ill agree th e g reatest hazard is th e hazard of living too long. The second g reatest hazard—is th e danger of dying too soon—before you have an o p p o rtu n ity of doing the th in g s you have planned for your fam ily. If it w ere possible th a t you could find a plan th a t w ould elim inate these hazards dow n th ro u g h th e fu tu re it w ould certain ly be w o rth a g reat deal, w ou ld n ’t it? W h at could you p u t into such a plan p er m onth if it w ere available? You say you could squeeze out $50 per m onth? In th e course of a week or ten days afte r I have carefully an a lyzed y o u r situation, I w ill call you and we can arran g e for a tim e w hen you, y o u r w ife and I can get together and I w ill give you th e resu lt of m y findings, b u t in th e m eantim e, let’s call in th e m an w ith th e little black bag and find out w h e th e r or not you can qualify.—T H E END. Takes Over Assets Jo in t announcem ent w as m ade on October 27th by Lee F ran k , chairm an of th e board of N ational Bond & In vestm en t Company, Chicago, and A. E. D uncan, ch airm an of th e board of Com m ercial C redit Company, B alti m ore, th a t an agreem ent has been en- 29 tere d into w hereb y th e assets of N a tion al Bond & In v e stm e n t Com pany and its subsidiaries w ill be acquired for cash a t approxim ate book value by Com m ercial Credit Company. Mr. D uncan stated th a t C om m ercial C redit Com pany expects to continue, and possibly th ro u g h an enlarged te r rito ry , th e successful plans and poli cies for m an y y ears p u rsu ed by N a tion al Bond & In v e stm e n t Com pany and its sub sid iary com panies. New subsidiaries of Com m ercial C redit Com pany, u n d e r sim ilar nam es used by N ational Bond & In v e stm e n t Com p an y and its subsidiaries, w ill con tin u e to o perate th e business as h e re tofore at th e ir p re se n t local offices w ith Chicago h ead q u arters, and w ith th e ir p re se n t m an agem ent and p e r sonnel, w ith o u t any change in p resen t N ational Bond plans and policies w ith dealers and th e public. SOUND COUNSEL in a n a ly z in g and m eeting Kissel! Elected Vice President E. C hester G ersten, president, a n nounces th a t th e board of directo rs has elected W illiam J. Kissell a vice p re si den t of th e P ublic N ational B ank & T ru st Com pany of New York City. Mr. Kissell sta rte d his ban k in g ca re e r in 1915 w ith th e N ational B ank of Com m erce in New York and w as later w ith the G u aran ty T ru st Com pany N early every bank in the U nited States has profited by Bur roughs’ technical k n ow led ge o f the different m ethods and m achines that can be used to meet different conditions in bank accounting. T h e banks have profited also by the sound counsel that Bur roughs gives . . . sound counsel in analyzing a bank’s procedure, routine and requirements — sound counsel in m aking practical, carefully thought out recom m endations — sound counsel in selecting the right equipm ent to meet each bank’s individual requirements — sound counsel in properly installing and applying the equipm ent selected. Today, in the face o f changing conditions, banks are benefiting m ore than ever by Burroughs’ fifty years o f active participation in the developm ent o f bank accou n tin g—are profiting by Bur roughs’ dependable recom m endations. BURROUGHS W IL L IA M J. K IS S E L L w ith w hich th e form er in stitu tio n w as m erged. D uring th e period of b ank difficulties he w as tre a s u re r of th e N a tional C redit C orporation, founded by th e n a tio n ’s b anks as a fo re ru n n e r of the R econstruction F in an ce C orpora tion. Since th e liquidation of th a t cor po ratio n in 1935 he h as been w ith th e New Y ork T ru st C om pany as a ssista n t tre a su re r. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ADDING MACHINE COMPANY DETROIT, M I CH IG AN B u rro u g h s DOES THE W O RK IN LESS TIME • W ITH LESS EFFORT • AT LESS COST 30 ■4, Improved feeding methods are making it possible to measure more accurately the prospective profits for Northwest cattle feeders. Constant experiments by agricul tural colleges of the Northwest states and e x p e r ie n c e d fe e d e r s in the search for better feeds, superior feeding conditions and improved stock help the cattle feeder better his practices and increase his profits. The “Northwestern” is anxious and willing to cooperate with corre spondent banks in rendering a com plete service for cattle feeder loans. We are as near as your telephone, telegraph or typewriter. N O R T H W E S T E R N B A N K B U I L D I N G ----- 3 0 , 0 0 0 p e o p l e ----e n te r a n d le a v e th e N o r th w e s t e rn B a n k B u ild in g e v e ry w o r k in g d a y . M a n y m o d e r a te s iz e d M in n e s o ta to w n s c o n ta in fe w e r p e o p le a n d le s s im p r o v e d r e a l e s t a t e t h a n is r e p r e s e n t e d b y th is o n e “ C o m m u n ity USE "NORTHWESTERN" SERVICES D e p a r tm e n t o f B a n k s a n d B a n k e r s Wm. IN. Johnson Vice P r e s i d e n t F. W. Conrad D. E. Crouley L. P. Gisvold Asst. Vice P re s. Asst. Cash ier Asst. Cashier NORTHW ESTERN NATIONAL BAN K AND TRUST COMPANY MINNEAPOLIS • Northwestern Banker Novem ber L94Í https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION 31 the figure rep o rted for th e sam e m onth a y ear ago. T his m ark s th e b est volum e recorded for any like m onth in recen t years. MINNESOTA Validity of Law Upheld N E WS O. G. J O N E S P r e s id e n t R e d W in g Recovering from Operation H. H. P ey to n of D uluth, p resid en t of th e P io n eer N ational B ank of th a t city and of th e F irs t N ational B ank of P roctor, is recovering a t a R oches te r h o sp ital from a m ajo r operation. Bank Remodels Interior T he rem odeling of th e in te rio r of th e F irs t N ational B an k of Le C enter is w ell u n d e r w ay, an d th e w o rk is co n tin u in g a t all h o u rs except those w h en th e b an k is open to th e public. Association Meets T he fall m eeting of th e N o rth w est C learing H ouse A ssociation w as held O ctober 25 a t th e P alm G arden Cafe in T hief R iver Falls. A good atten d an ce w as rep o rted at th is m eeting, w hich included a b u si ness session in th e late afternoon, fol low ed by a b an q u et in th e evening. G uest speak ers included O. C. Jones of R ed W ing, p resid en t of th e asso ciation, and W illiam D uncan of M in neapolis, se cretary of th e M innesota B an k ers A ssociation. Seventh Payment Made A ccording to b an k officials, the sev en th p ay m en t to holders of p a rtic ip atin g tr u s t certificates at th e Zapp S tate B ank of St. Cloud w as m ade last m onth. T he p ay m en t am o u n ted to 5 per cent, b rin g in g th e to tal to 55 p er cent of th e rem ain in g 50 p er cent th e tru s t h olders w ere forced to leave in the b an k in 1933. State Banks Strong M innesota b anks have m aterially stre n g th e n e d th e ir position by bu ild ing up stro n g surplus, undivided profits and reserv e accounts, F. A. A m undson, sta te com m issioner of banks, announced recen tly upon com pletion of re p o rts show ing th e condi tio n of sta te banks. D eposits for th e th re e q u a rte r jum p ed $6,493,192, or to a to tal of $312,740,205, as of Septem ber 24, 1941, from th e to tal recorded on Ju n e 30 W IL L IA M D U N C A N , J r . S e c r e ta r y M in n e a p o lis last, A m undson’s tab u latio n showed. T he re p o rt covers 487 state banks, one savings b an k and four tru s t com panies. The reserv e req u ired as of Septem b er 24 w as $20,437,608, according to A m undson, b u t th e cash on han d to taled in excess of $70,000,000, or m ore th a n th ree tim es th e am ount req uired by law. A m undson observed th a t th e de m and for local loans is increasing w hile a gradual reduction of second a ry bonds continues. Surplus, undivided profits and re serves increased $1,099,783 for th e q u arter. Surplus in state banks now to tal $11,751,750 against capital stock of $13,857,100. U ndivided profits total $7,005,838. Combined, su rp lu s and u n divided profits to tal $18,757,588, and exceeds th e capital stock by $4,900,488. Loans and discounts increased $4,427,378, to a to tal of $149,726,692. Give Seminar Lectures “B anking, B usiness and W orld E v e n ts” is th e title of th e sem inarlecture course now being given in St. P aul u n d er th e auspices of the St. Paul c h ap ter of th e A m erican In stitu te of Banking. T he lectures are being held in th e em ployes’ club room s of the F irs t N ational B ank of St. Paul. Two lectures have already been given—on October 10 and 24—the speakers being T hom as H. Hodgson, a ssistan t counsel of th e F ederal R e serve B ank of M inneapolis, and Carl R. Gray, Jr., executive vice presid en t of th e Om aha railroad. Two m ore lectures will be given—on N ovem ber 7 and 21—th e speaker on N ovem ber 21 being Louis S. Headley, vice p resi d en t of th e F irs t T ru st Com pany of St. Paul. Favorable Business Picture F avorable sign in th e business pic tu re at F airm o n t w as th e high m ark set in th e value of “b an k debits.” A m onth ago, debit volum e rep o rted by F airm o n t banks to th e F ed eral Re serve B ank of M inneapolis am ounted to $2,969,000 and w as 25 p er cent above V alidity of th e 1933 ban k in g act w hich p erm its reorganization of state banks w ith th e approval of a m ajo rity of depositors and the com m issioner of banking, w as upheld last m o n th in a M innesota suprem e co u rt decision w ritte n by Chief Ju stice H en ry M. Gallagher. The decision w as handed dow n in a suit against th e Citizens S tate Bank, New Ulm, by Mrs. H attie B altrusch, w ho attem p ted to recover the en tire am ount of th e m oney she had de posited in th e bank, instead of th e one-half provided u n d er th e reo rg an ization plan. T he low er co u rt ju d g m en t gran ted h e r only half h e r deposits and she appealed th e ju d g m en t to th e high court. In th e decision, th e co u rt held th a t th e state b an king law did not “im pair obligation of contracts so as to violate th e M innesota co n stitu tio n ” and th a t th e com m issioner of banks had acted correctly in approving th e plan of re organization. New Director Jo h n E. Hoff, D uluth real estate m an, recently w as elected to th e board of directors of th e B ank of Commerce & Savings, according to announce m en t m ade by Jay M arkle, president. Hoff is vice p resid en t of th e D uluth B oard of R ealtors and of th e B uilding O w ners’ and M anagers’ association. He is a p ast p resid en t of th e la tte r group, a m em ber of th e ap artm en t house com m ittee of th e n ational as sociation and a m em ber of th e local association’s tax atio n com m ittee. Annual Meeting Held T he Blue E a rth V alley Clearing H ouse A ssociation held its annual m eeting in Blue E a rth last m onth. The m ain speaker of th e evening w as P rofessor A. B. M orris of the M ankato T eachers College, w ho gave a h isto ria n ’s view of p resen t day w orld events. O ther speakers w ere R. O. Bishop, regional supervisor of th e FDIC, O. G. Jones of Red W ing, president, and W illiam D uncan, Jr. of M inneapolis, secretary, M innesota B ankers Association. E a rl H um m el of th e F irs t and F a rm ers N ational B ank of Blue E a rth , re tirin g presid en t of th e association, presided a t th e m eeting. New officers w ere elected as follows: W illiam Borch ert of th e F irs t N ational B ank of M apleton, president; M. J. Jones of Northwestern Banker Novem ber 19M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 • M IN N ESO T A Cam bria, vice president; an d Glen Uggen of W ells, secretary -treasu rer. Clifford K ittleson of F ro st and A. T. W eyer of E lm ore w ere placed on the board of directors of th e association. FDIC Report R esources of th e 644 in su red com m ercial b anks in th e S tate of M inne sota totalled $1,159,110,000 on Ju n e 30, 1941, according to a su rv ey m ade pub lic recen tly by th e F ed eral D eposit Insu ran ce Corporation. Deposits in th e in su red b an k s w ere NEWS listed as $1,045,282,000. D em and de posits of th e latest call date am ounted to $712,135,000 and tim e deposits totaled $333,147,000. Loans and discounts of th e re p o rt ing banks am ounted to $398,130,000, an increase of $46,452,000 over the Ju n e 29, 1940 total. D irect and g u aran teed obligations of th e U nited States G overnm ent listed by th e M innesota banks am ounted to $252,956,000 on Ju n e 30, 1941. O ther securities totalled $94,958,000. Loans and discounts of th e 13.423 in su red com m ercial banks th ro u g h o u t * th e co u n try totalled $19,913,000,000, an increase of $2,899,000,000 or 17 p er cent over th e am o u n t rep o rted Ju n e 29, 1940. D eposits increased from the $58,425,000,000 rep o rted th e previous year to $65,617,000,000, th e highest fig u re since in au g u ratio n of deposit in surance. Large Bank Volume F avorable sign in th e business pic tu re of O w atonna w as th e high m ark set in th e value of “b an k debits.” A m onth ago debit volum e reported by W aseca banks to the Federal Re serve B ank of M inneapolis, am ounted to $3,065,000 and w as 13 p er cent above th e figure rep o rted for th e sam e m onth a y ear ago. T his w as th e best volum e recorded for any like m onth in m ore th an tw elve years. D ebit totals for th e y ear to date stand 18 p er cent above the corre sponding figures for 1940. Accepts New Position P alm er Score, w ho has been em ployed by th e F irs t S tate B ank of K ensington, is now w orking at the B ank of Elbow Lake. Goes to Monticello F ra n k D oem hildt has resigned his position as a ssistan t cashier of the E lysian S tate B ank to take a sim ilar one in th e W rig h t County State B ank of Monticello. Let Us Assist \ on D u e to current h ig h p rices o f the liv esto ck goin g in to feed lots, banks w ill ex p er ie n c e e x c e p tio n a lly h eavy d em ands from th e feed ers for financing. W e sp ec ia liz e in feed er finan cing and our service to bank s lo cated in feed er territory w ill b e esp e cia lly valu a b le th is year. Our co m p lete b an k in g fa c ilitie s assure p ro m p t and efficient h a n d lin g o f all tran saction s in th is territory. We invite your account. Stock Yards National Bank South St. Paul, Minnesota M EM BER F E D E R A L D E P O S IT IN S U R A N C E C O R PO R A TIO N Northwestern Banker Novem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Resources Over $8,000,000 R esources of F a rib a u lt co u n ty ’s banks have now reached a total of m ore th a n eight and a q u a rte r m illion dollars, according to q u arterly state m ents recently printed. Bank Directors Elected E lection of E ly Salyards and Car lisle M. H eim bach to th e board of directors of the City N ational B ank of D uluth w as announced last m onth by H erm an C. Matzke, ban k president, follow ing a d irecto rs’ m eeting. Mr. Salyards is presid en t of th e D uluth B oard of T rade and Mr. H eim bach is presid en t of H eim bach L um ber Co. The new directors fill vacancies on th e board created by th e deaths of J. F. K illorin and H. C. M acgregor. Construct New Vault A new v au lt is being constructed in the State B ank of P a rk Rapids. The v au lt is in th e re a r of th e bank stru ctu re, and is additional v au lt space. The p resen t v au lt is not being disturbed. 33 Tw i n C ity N e w s p V G E FIN R U D of F irs t N ational U B ank & T ru st Com pany, M inne apolis, w as elected p resid en t of the T w in City Bond T rad ers club a t the a n n u a l m eeting, at w hich m em bers voted to incorporate th e organization u n d e r state laws. George Jackish of H arris, U pham & Com pany, M inneapolis, w as given Finr u d ’s fo rm er post of vice president, w hile Carroll H. Babcock of P iper, Jaffra y & Hopwood, M inneapolis, w as nam ed tre a su re r, B yron K airies of M errill L ynch, Pierce, F e n n e r & Beane, M inneapolis, becam e secretary and R obert M. Rice, M inneapolis, re tirin g president, national com m ittee man. Prof. Theodore M itau of M acalester college, St. Paul, y o u th w o rk er in G erm any in the early Nazi days, spoke a t th e a n n u a l fall b an q u et of th e M in neapolis F ed eral R eserve club a t C ur tis hotel. Club p resid en t th is y e a r is E d ith Drier. M innesota Safe D eposit association held its first m eeting of th e new y ear a t Commodore hotel, St. Paul, w ith C harles E. N ieinan, atto rn ey , leading th e discussions of v a u lt problem s. Officers are J. M. K ane, cashier of Stock Y ards N ational B ank, South St. Paul, president; M. E. W eim ar, a ssist a n t cashier, F a rm e rs & M erchants S tate Bank, St. Paul, vice president, and D orothy Rich, B loom ington-Lake N ational B ank, M inneapolis, secretarytre a su re r. E xecutive com m ittee m em bers are H. A. W arner, Jr., p resid en t of F irs t S tate B ank, W hite B ear Lake; Julia C um m ings of St. A nth o n y F alls office of F irs t N ational B ank & T ru st Com pany, M inneapolis; C. A. M oberg, Jr., v a u lt m an ag er of F irs t N ational B ank, St. Paul, and J. G. G oblisch, a ssista n t cash ier of G rand A venue S tate Bank, St. Paul. By Jam es M. Sutherland S p e c ia l C o r r e s p o n d e n t V alidity of M innesota’s 1933 banking act, w hich perm its reorganization of state banks w ith approval of a m a jo rity of th e depositors and th e com m issioner of banks, has been upheld in a decision handed dow n by th e state suprem e court. The ru lin g w as m ade in a suit against th e Citizens State B ank of New Ulm by Mrs. H attie B altrusch, w ho attem p ted to collect th e en tire am ount of m oney she had deposited instead of the one-half provided u n d er th e reorganization plan. The suprem e co urt upheld the low er court in deny ing h er th e rig h t to collect h er full deposits. R ichard C. L illy, presid en t of F irst N ational Bank, St. Paul, is one of th ree n o rth w est ban k ers nam ed m em b ers at large of the executive council of th e A m erican B ankers Association. O thers are B. M urray Peyton, p resi dent of M innesota N ational B ank of D uluth and for m any y ears tre a su re r of th e A. B. A., and Sam uel N. Pickard, p resid en t of th e N ational M anufac tu re rs B ank of N eenah, Wis. C larence R. Chaney, vice p resid en t of N o rth w estern N ational B ank & T ru st Company, has been nam ed a d irector of th e M inneapolis Civic & Commerce Association. J u st four y ears old, Columbia H eights State B ank paid its second dividend Oct. 10. T he $3 a share divi dend w as 50 cents g reater th a n th a t paid a y ear ago. The b ank opened Oct. 18, 1937. E arn in g s last year, according to C ashier H. S. W oodward, w ere $9.40 p er share, after federal taxes. Follow ing th e ir custom , directors p u t the bulk of these earnings into surplus and reserves. Book value, including reserves, is now over $153 per share, com pared w ith th e issuing prices of $130. A rthur L. Gluck is president, H enry E. A tw ood vice p resid en t and H. S. W oodward, cashier. H. B. Hum ason, president of A m eri can N ational Bank, St. Paul, has been nam ed a m em ber of th e executive com m ittee of the national b ank divi sion of A m erican B ankers Association, rep resen tin g the N in th F ederal Re serve D istrict. New officers of th e E xchequer of M inneapolis w ere nam ed at th e first fall m eeting of th e 1941-42 season, re p o rt of th e nom inating com m ittee be ing unanim ously adopted. Gordon E. Larkin, vice p resid en t of M arquette N ational Bank, w as ad- JAMIESON & COMPANY Stocks Bonds Grain 0 Cotton Butter Eggs Commodity Brokers • Members New York Stock Exchange and Other Principal Exchanges • ST. PAUL — MINNEAPOLIS • Government — Municipal Corporation Bonds • CHARLES C. RIEGER Manager Bond Department Minneapolis — Atlantic 8235 N orthw estern B anker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 •MINN ESO TA vanced from vice p resid en t to p resi dent; E. J. Olson, m an ag er of N o rth w estern N ational B ank & T ru st Com p an y ’s Lincoln office, w as advanced from se c retary -treasu rer to vice p resi dent, w hile E. R. Oberg, cashier of Bloom ington-Lake N ational B ank, w as elected secretary -treasu rer. C hairm an of th e b an k m an agem ent com m ittee is J. R aym ond Sm ith, com p tro lle r of N o rth w estern N ational, w hile m em bers are O. H. Odin, execu tive vice p resid en t of M arquette N a tional B ank, and K. M. M orrison, N EW S* com ptroller of F irs t N ational B ank & T ru st Co. C. H erbert Cornell, cashier of U ni v e rsity N ational Bank, heads th e pro gram com m ittee, assisted by W illiam A. B enson, a ssistan t m anager of N o rth w estern N ational’s N o rth A m er ican office, and H arry I. Ziem er, vice p resid en t and cashier of M inneapolis F ed eral R eserve Bank. B. W . Lob mar, m anager of F irs t N a tio n al’s N o rth Side office, is re tirin g president. R. O. T hayer vice p resid en t of F ifth N o rth w estern N ational Bank, headed th e nom inating com m ittee. Col. C larence B. L ittle, pioneer leg islator and b an k er of N o rth D akota and a m em ber of th e executive com m ittee of F irs t B ank Stock C orpora tion, died in St. P au l only a little over a m onth before his eighty-fourth b irth day. B orn in New H am pshire, he had lived in B ism arck, N. D., since 1883. He w as a m em ber of th e first N orth D akota senate, in w hich he served 20 years. W illiam F . Graves, a ssistan t secre ta ry of N o rth w est B ancorporation in charge of th e credit d ep artm en t in M inneapolis, has assum ed new duties as vice p resid en t and d irector of the N ational B ank of LaCrosse, Wis., a Banco affiliate. Clearing House Meeting Qualified— One Hundred Per Cent ! For 46 years the Live Stock National Bank has been located in the Sioux City stock yards—serving the live stock and farming interests of the great Sioux City market area. If your bank is agricultural—as are most banks in this territory—you can see why our specialized ex perience helps you. Both our location and experience gualify us a hundred per cent to handle your items for you in Sioux City. O F F IC E R S C. L. F re d ric k s e n , P re s id e n t M. A. W ilso n , V ice P re s id e n t W . G. N elso n , A s s is ta n t V ice P re s id e n t W . C. Schenk, C ash ier H . C. L in d u sk i, A s s is ta n t C ash ie r C. L. A dam s, A s s is ta n t C ash ie r J. S. H a v er, A s s is ta n t C ash ier Seventy ban k ers from F reeborn, Steele and W aseca counties com pris ing the D airy Region Clearing H ouse A ssociation m et at th e co u n try club in A lbert Lea recen tly for an evening session. Officers elected are C harles Spalding, W aseca, president; W. A. Gray, A lbert Lea, vice president; H. L. P eterson, Tw in Lakes, secretary-treas urer; and F. J. Greeley, Alden, direc tor. R ound table discussions of b an k ing problem s w ere held. Golf w as also arran g ed for th e afternoon and a d inner w as held in th e evening. Appointed Vice President H olland N orton of W aseca, w ho has been trav elin g for th e p ast 11 y ears in his capacity w ith th e exam ining and auditing division of th e N o rth w est B ancorporation, recen tly took over his new duties as vice p resident of the M urray State B ank of Slayton. D IR E C T O R S C. R. M cK enna, P res., Jo h n so n B is c u it Co. B. L. Sifford, A tto rn e y , S ifford & W ad d e n G. F . S ilk n itte r, P re s id e n t, S ioux C ity Stock Y a rd s C om pany C. L. F red ric k se n , P re s id e n t M . A. W ilso n , V ice P re s id e n t H . C. B osw ell, S e c re ta ry -T re a s u re r, W e s te rn C o n tra c tin g C o rp o ra tio n “The Bank at the Y ards” M ember Federal D eposit Insu ran ce Corporation Dividend N o rth w est B ancorporation on No vem ber 25 w ill pay a dividend of 25 cents a sh are to stockholders of rec ord N ovem ber 10. T his is B anco’s second dividend in 1941, th e first, for 20 cents, h ad been paid May 25. In 1940 th e b an k holding com pany paid tw o dividends totalin g 20 cents. Farr Resigns S I O U X C I T Y , IOWA N orthw estern Banker N ovem ber Í9 4 Í https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Daniel E. F arr, ch airm an of the board of directors of In v estors Syn dicate since 1938, has resigned to take th e post of head atto rn e y in th e office of th e chief of air corps, m aterial di vision, U nited States arm y. H e w ill m ake his h e ad q u arters a t W rig h t field, D ayton, Ohio. D uring W orld W ar I he served as a captain com m anding th e fo rtieth m achine gun battalion. 35 tional B ank of th e Black Hills. A new fro n t en tran ce and new doors and a false ceiling are being added. F lu o r escent lighting and an air conditioner are being installed, w hile th e in terio r w ill be com pletely redecorated. SOUTH DAKO TA L . T. M O R R IS P re s id e n t W aterto w n NEWS Group Meeting C. O. G order of D eadw ood w as elected p re sid e n t of group seven of th e South D akota B an k ers A ssociation a t th e an n u a l m eeting in L ead last m onth. O ther officers elected w ere T. L. Seppala, E dgem ont, vice president, C harles E. Pendo, Lead, secretarytre a su re r, an d C. J. P oshuta, N ew U n derw ood, executive council re p re se n tativ e. Prominent Banker Dies Accepts Teller's Position G EO R G E M. S T A R R IN G S e c re ta ry -T rea su re r H u ro n D irect and g u aran teed obligations of th e U nited S tates G overnm ent listed by th e South D akota banks am ounted to $17,555,000 on Ju n e 30, 1941. O ther secu rities totalled $12,369,000. L oans and discounts of th e 13,423 in su red com m ercial banks th ro u g h o u t th e co u n try totalled $19,913,000,000, an in crease of $2,899,000,000 or 17 p er cent over th e am ount rep o rted Ju n e 29, 1940. D eposits increased from th e $58,425,000,000 rep o rted th e previous y e a r to $65,617,000,000, th e h ighest figure since in au g u ratio n of deposit insurance. A long illness ended la st m o n th in th e d eath of B enson H. ReQua, 82, vice p re sid e n t of th e F irs t N ational B ank an d T ru s t C om pany of Sioux Falls. Mr. ReQua h a d been connected w ith th e b an k in g b u siness in Sioux F alls since 1888, an d h ad been active u n til A ugust, 1940, w h en he becam e ill. T he M enno S tate B ank recen tly p u r chased 180 safety deposit boxes w hich w ill be in stalled in th e b an k vault. T hey are equipped w ith double locks, and are larg er th a n those form erly in use. Plan Enlargement Program Favor Branch Bank R. E. Driscoll, p re sid e n t of th e F irs t N ational B ank of R apid City, a n nounced la st m o n th th a t th e b an k had purch ased th e F allo n b uilding in R apid City, ow ned by Mrs. B ernadine Benedict, as th e first step in a con tem p lated en larg em en t program . Mr. D riscoll said th a t increased ban k in g activ ity h ad m ade it neces sa ry to m ake p lans for th e futu re. P lan s for en larg in g th e b an k q u a r te rs are being discussed, and w ill not be sta rte d u n til som e tim e n e x t year. FDIC Report R esources of th e 161 in su red com m ercial b an k s in th e sta te of South D akota to talled $120,308,000 on Ju n e 30, 1941, according to a su rv ey m ade public recen tly by th e F ed eral D eposit In su ra n c e C orporation. D eposits in th e in su red b an k s w ere listed as $106,508,000. D em and de posits of th e latest call date am ounted to $74,473,000 and tim e deposits totalled $32,035,000. Loans and discounts of th e re p o rt ing b an k s am o u n ted to $53,474,000, an increase of $6,713,000 over th e Ju n e 29, 1940 total. Purchase New Equipment T he P ine Ridge business m en ’s club called a special session last m onth to discuss th e possibility of establishing a b ra n ch b an k in P ine Ridge. T h ree m em bers of th e Black Pipe S tate B ank of M artin, O. A. Hodson, p resident; Carl H icks, cashier and H aro ld Jam es, director, w ere present. T he advantages of a b an k in Pine Ridge, a fast grow ing com m unity of 1,800, w ith a large g overnm ent payroll and m uch road w ork expected in th e n e a r fu tu re, w ere pointed out. Al th o u g h no definite action w as taken, it is expected th a t a b ank w ill be es tab lished soon. Former Banker Dies Jam es Nelson, 87, w ell-know n Mid land ran cher, passed aw ay at his hom e th e re recently. Mr. N elson w as a m em ber of the board of directors of th e F irs t N a tio n al B ank of P hilip for 25 years. Make Improvements M any im provem ents are being m ade and some rem odeling tak in g place a t th e S turgis b ran ch of th e F irs t N a C harles J. Torkelson, an em ploye of th e F irs t Citizens N ational B ank of W aterto w n for th e p ast four y ears has accepted a te lle r’s position w ith th e F irs t N ational B ank at M andan, N o rth Dakota. Buy Controlling Interest Sale of th e controlling in te re st of Mrs. C. A. Stone of C arthage in th e F a rm e rs S tate B ank of th a t city, of w hich h e r late husb an d w as president, is reported, th e buy ers being th e Com m u n ity M ortgage Com pany of Lake P reston. Stockholders in th e m ortgage com p an y include J. O. P u rin tu n , E. F. G reen and H a rry J. E ggen of De Smet. Celebrates 61st Anniversary T he F irs t Citizens N ational B ank of W aterto w n recen tly celebrated its 61st an n iv ersary of business. E stablished in Septem ber, 1880, its deposits from a com parative h an dful of citizens th en totaled b u t $5,000. Today th e b ank announces a clientele of m ore th a n 6,000 depositors and borrow ers and a w o rth of $3,000,000. A rig h tfu l boast of th e in stitu tio n is th a t in its 61 y ears of business “no depositor has lost a single dollar en tru ste d to its care.” T he b an k now has 15 employes. Ten additional persons com prise its official staff and board of directors. NEW S AND VIEWS (C ontinued from page 12) bound volum es of y o u r le tte rs m ean to him and w ill ever increasingly m ean as th e y ears go by.” R oger Topp, vice president, and D aniel F. O’Meara, a ssistan t vice p resi dent of th e Public N ational B ank and T ru st Com pany of N ew York, officiated m ost delightfully a t th e ir “open house” cocktail p a rty held a t th e B lackstone du rin g th e A m erican B ankers conven tion last m onth. T he m ain office of th e b an k has now been m oved to 37 Broad Street, a n d g reatly im proved facilities are th u s available at th is v ery fine institu tio n , w hich now has deposits of over $170,000,000. M arriner S. E ccles, chairm an of th e F ed eral R eserve Board, in a recen t N orthw estern Banker N ovem ber 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36 • SOUTH statem en t said th at, “ Industrial strife during tim es of national peril was intolerable, because every u n it of the n ation ’s production m achinery w as needed for defense and civilian n eed s.” W e quite agree w ith Mr. Eccles, b u t w hen th e g o v ern m en t of th e U nited States itself has pandered and pam pered labor leaders in order to get th e ir votes, w h at chance is th e re of th a t sam e govern m en t enforcing th e sam e rules and regu latio n s for labor unions th a t now ex ist for co rpora tions? How long th e A m erican public will D A K O T A NEWS stan d for such practices as having strik es in defense industries, tim e alone w ill tell. Miss A. T. Olsson, publicity director of the Live Stock N ational B ank of Omaha, has been using th e back of th e ir statem en t card to help sell new defense bonds, and the copy is “Be lieve in the U nited States of A m erica,” and th e n she points out four reasons w h y Series E U nited States Defense Bonds are a good in v estm en t by say ing: Above: U niversal "Z" 2-4 row 2-3 plow tractor and H arvestor " 6 9 " — one m an operation. The Mighty Masters of all Crops. Realizing the value and im portance of modern, efficient farm tools, bankers have been a potent force in the promotion of prosperity of rural communities. In offer ing a helping hand to deserving farmers who lack the ready cash for buying needed tools and power, bankers have helped those farmers to become better customers for all business places in the community. This year bankers and MM dealers will again be cooperating to bring more MM tractors and machines to deserving farm ers in their communities. In doing so, they'll be performing a service not only to the farmers themselves but to the com munity as a whole, and indirectly the whole nation. Above: The H arvestor 12 foot — original light weight, big capacity com bine for all crops — w orld's largest seller in that size. MM Tractors and m achines will this y ear bring to more farm ers new dependability in perform ance and new economy in operation. Below: "J" H arvestor — offered in 6 and 8 foot sizes — one or two man operation. • “1. Backed by th e full faith and credit of th e U. S. G overnm ent. 2. R egistered, not transferable. 3. Pays 2.9 p er cent in terest if held ten years. 4. R edeem able a t any tim e after 60 days from date of p u rchase.” Joseph C. W illiam s, vice president of th e Commerce T ru st Com pany of K ansas City, is n a tu ra lly proud of the fact th a t his in stitu tio n is, “largest of th e m any large banks in th e T enth F ederal R eserve D istrict,” and, at the last call, had deposits of $227,661,314. Also th e su rp lu s and undivided profits of th e bank are $7,149,333, and th e capital is $6,000,000. Orval W. A dam s, form er A. B. A. president, and executive vice president of the U tah State N ational E an k of Salt Lake City, has called our attention to a speech of Dr. Joseph F. M errill of th e council of th e tw elve anostles of the M ormon Church, in w hich he crit icizes the abuses of the p resen t labor organization ,and expresses his oppo sition to th e “closed shop.” Dr. M errill said: “W hen we deny an able-bodied m an th e ‘rig h t to w o rk ’ we rob him of his independence and destroy his happiness. It is this denial th a t faces m yriads of w illing w orkers in A m erica today, because of a new ty ra n n y —one n ever dream ed of by the founders—th a t has arisen, th a t of the ‘closed shop,’ including th e check-off system .” A. L. M. W iggin s, presid en t of the B ank of H artsville, South Carolina, sent us a copy of th e A nderson Daily Mail as it w ould be published “in the U nited States should we lose th e price less liberties guaran teed in th e Bill of R ights.” At the top of the p aper it said, “Get ratio n cards at City H all if you expect to eat.” Also, u n d er th e nam e of the publication it said, “Published u nder censorship of th e G overnm ent of the T h ird H eel.” All m eetings w ere banned, a w ork w eek of 70 hours w as established and all elections w ere called off because G eneral H eil H eel w as to nam e his own candidates. W illiam F eick , vice president, Irv ing T ru st Company, New York, used to tra in fliers in W orld W ar num ber one. He did a stu n t flight at L ittle Rock to publicize a L ib erty Loan bond sale b u t he fell 15,000 feet and m iracu lously escaped death. A lthough Mrs. F eick is not v ery keen about his flying (T u rn to n ex t page, please) N orthw estern B anker N ovem ber 19)1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37 O ttum w a, w as invited to go sailing w ith E d D ecker of th e F irs t N ational B ank of Chicago d uring th e big g a th e r ing of A. B. A. executives. W h eth er M ax w ill add y achting to his m any o th er activities has not y et been learned. NORTH DAKOTA J . I. H E G G E P re s id e n t H illsboro NE WS Elected President E v an D. Saltzm an, w ho has served th e F irs t N ational B ank of B ism arck as vice p resid en t since M arch, 1939, w as elected p resid en t of th a t in s titu tion last m o n th to succeed th e late Col. C. B. L ittle. Mr. Saltzm an becom es th e fifth p resid en t in th e h isto ry of th e 62-yearold in stitu tio n , second oldest b an k in N o rth Dakota. Mr. Saltzm an b rin g s long y ears of ban k in g experience to his new capac ity. * Former Banker Dies H erm an A. B rocherding, p o stm aster a t N ew E ngland, died in a F argo hospital last m o n th a fte r an illness of several years. Mr. B orcherding w as a re sid e n t of N ew E n g lan d for a q u a rte r of centu ry , an d w as one of th e founders of th e F a rm e rs and M erchants S tate B ank th ere, w hich closed S eptem ber 15, 1931. Harvey Banker Dead O. S. P eterson, 38, a ssista n t cashier of th e F irs t S tate B ank of H arvey, died recen tly of a h e a rt attack. Mr. P ete rso n h ad been a resid en t of H a r vey since 1930, w h en he en tered th e em ploy of th e F irs t N ational Bank. Mr. P eterso n becam e a ssista n t cashier of th e F irs t S tate B ank in 1936, w hen th e F irs t S tate took over th e F irs t N ational. FDIC Report R esources of th e 150 in su red com m ercial b an k s in th e sta te of N o rth D akota totalled $93,431,000 on Ju n e 30, 1941, according to a su rv ey m ade public recen tly by th e F ed eral D eposit In su ra n c e C orporation. D eposits in th e in su red b an k s w ere listed as $82,931,000. D em and deposits of th e la te st call date am ounted to $53,058,000 and tim e deposits totalled $29,873,000. Loans and discounts of th e re p o rt ing b anks am ounted to $35,936,000, an increase of $8,183,000 over th e Ju n e 29, 1940 total. B. F. Kauffm an, president, and R. R. R ollin s, vice president, of the B ankers C. C. W A TT AM S ecretary F arg o D irect and gu aran teed obligations of th e U nited States G overnm ent listed by th e N orth D akota banks am ounted to $17,145,000 on Ju n e 30, 1941. O ther securities totalled $7,133,000. Loans and discounts of th e 13,423 in su red com m ercial banks th ro u g h o u t th e co untry totalled $19,913,000,000, an increase of $2,899,000,000 or 17 p er cent over th e am ount rep o rted Ju n e 29, 1940. D eposits increased from the $58,425,000,000 rep o rted th e previous y ear to $65,617,000,000, th e h ighest figure since in au g u ratio n of deposit insurance. T ru st Company, Des Moines, p u t on one of the m ost delightful luncheon p arties w hich w as given in Chicago d uring th e A. B. A. The p a rty w as held in th e p riv ate suite of Joe P. B inn s, m anager of th e Stevens Hotel, and a fter luncheon Griff W illiam s, w ell-know n pianist, playing at the Palm er House, en tertain ed th e assem bled guests. Before entering, all guests w ere req u ired to sign th e ir nam es in chalk on a blackboard. The A lvin E. Johnson fam ily of Omaha w as honored last m onth in th e choice of Miss M yrtle Louise Johnson as one of th e princesses a t th e corona tion of th e K ing and Queen of AkSar-Ben. Mr. Johnson is p resident of th e Live Stock N ational B ank of Omaha.— TH E EN D . Prominent Banker Deceased Colonel Clarence B. L ittle, 83, wellknow n citizen of B ism arck and p resi den t of th e F irs t N ational B ank of th a t city, died in a St. P aul hospital recen tly afte r an illness of th ree m onths. Regional Meeting Held T w enty-three b an k ers of th e section in and around Hope recently held a regional m eeting in th a t city. Officers elected by th e group are: M. G. P e te r son of Hope, president; C. S. A nderson of H atton, vice president; and A. C. B row n of H annaford, secretary-treas urer. NEW S AND VIEWS (C ontinued from page 36) now, he still chases th e clouds from coast to coast w hen he w an ts to m ake a business trip. C hester L. Price, ad v ertisin g and p ublicity m anager of th e City N ational B ank and T ru st Company, Chicago, had a p riv ate luncheon at th e b ank for a n um ber of p ublishers and th e ir associates w ho w ere in Chicago d u r ing th e A. B. A. convention. Chet has long been active in th e Chicago F in a n cial A dvertisers A ssociation as w ell as th e N ational organization. Max von Schrader, cashier of the U nion B ank and T ru st Company, of Annual Outing The A nnual Colum bus Day O uting of the City N ational B ank and T ru st Com pany of Chicago w as held a t th e M edinah C ountry Club w ith several h u n d red officers and em ployees in a t tendance. In th e golf to urnam ent, th e low gross aw ards were: M. C. K orns, 85; P. R. Clarke, 86; L. L. Reid, 86; K. Rosek, 86; V. Galitz, 88, and W. W. H inshaw , Jr., 88. Low n et scores were: M. E. Shanahan, 71; R obert Guess, 71; J. B. L andry, 72, and Jo h n Barbee, 72. In addition to golf, th e day’s p ro gram included baseball, tennis, horse shoes, bingo, and bridge, w ith th e aw arding of prizes, m ovies of last y e a r’s outing, and dancing in th e eve ning. Division Chairman L aw rence F. Stern, presid en t of th e A m erican N ational B ank and T ru st Com pany of Chicago, is serving as chairm an of the b an k s’ division of the Chicago C om m unity F u n d drive this year. The quota for th e division is $210,000. H arold N. Snapp, assistan t cashier of the bank, is serving as ch air m an of th e speakers b u reau for the drive. N orthw estern Banker N ovem ber Í9M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 38 UNITEDSTATES R a tio n a l M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o rp o ra tio n N orthw estern B anker N ovem ber 19hî https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK o h O m a h a 39 S tate B ank of Pierce, and th e ir fam ilies, at a buffet d in n er a t th e ir hom e last m onth. Miss M arian Holle, who has resigned as bookkeeper of th e b an k to accept a sim ilar position a t th e N orfolk N ational Bank, w as p re sented a trav elin g bag by th e group. Mr. Schellpeper is cashier of th e Cones S tate Bank. NEBRASKA NEWS Completes Remodeling O. A. R IL E Y W M. B. H U G H E S S ecretary O m aha P re s id e n t Corn Show P rizes to talin g $75 in cash w ill be given in th e second a n n u al corn show sponsored by th e C entral N ational B ank of Colum bus, it w as announced recently. T he show, w hich last y e a r a ttra c te d m ore th a n 150 en tries, w ill be open for en trie s N ovem ber 5th. Ju d g in g w ill be S aturday, N ovem ber 15th, by E. F. F rolik, a ssista n t extension agronom ist, w ho judged last y e a r’s show. $2,000 Stolen L ast m o n th b u rg la rs b u rn ed th e ir w ay into th e v a u lt of th e G rafton State Bank, w hich contained about $2,000. H ow ever, it is doubtful if th e thieves obtained m uch loot, since a p p a re n tly th e h eat from th e ir to rch destroyed m uch cu rren cy and silver. I t is believed th a t these b u rg lars w ere th e sam e ones w ho looted th e Citizens S tate B ank a t C arleton a w eek previous to th e G rafton robbery. The C arleton b u rg la rs escaped u nobserved w ith about $1,400, leaving behind about $1,000, som e of w hich w as b u rn e d by th e torch. The new ly elected p resident for the ju n io rs is B. M. DeLay, a ssistan t cash ier of th e D eLay N ational B ank of N orfolk, w ho has served as state ch air m an since th e state association w as organized at G rand Island tw o m onths ago. W. E. Siebert of th e F irs t N ational B ank at G rand Island w as elected vice president. H en ry G ram ann of th e A dam s State B ank of A dam s is th e secretary -treas u rer. G rand Island w as selected for th e second an n u al convention nex t year. O ther speakers w ere W illiam B. H ughes of Omaha, secretary of th e N ebraska B ankers Association; Carl Ganz of Alvo, p ast state president, and W illiam N. M itten of F rem ont. FDIC Report R esources of th e 361 in sured com m ercial banks in th e state of N ebraska totaled $389,493,000 on Ju n e 30, 1941, according to a survey m ade public re cently by th e F ed eral D eposit In s u r ance C orporation. D eposits in th e in su red banks w ere listed as $347,791,000. D em and depos its of th e latest call date am ounted to Apply for Loan License Goes to Lincoln New Bank Clerk Mrs. M adeline M anthy, w ho has been em ployed by th e F irs t N ational B ank of F a irb u ry for a n u m b er of years, re cently left F a irb u ry to join h e r h u s band, Carl W. M anthy, w ho is an in stru c to r in a L incoln h igh school. H a rry M cCutcheon, Jr., has accepted a position as a clerk in the Com m er cial State B ank of Cedar Bluffs. He replaces H arold Grosse, w ho has been called for service in th e arm y. E lection of officers and an address by Dr. W illiam A. Irw in of N ew York City, educational d irecto r for the A m erican In stitu te of B anking, h ig h lighted th e m eeting of th e first a n n u a l convention of th e Ju n io r B ankers A s sociation of N ebraska, held last m o n th a t th e C larke H otel in H astings. Jo h n H uigens of C reighton has ac cepted a position as bookkeeper in th e Cones State B ank a t Pierce. Mr. H uigens succeeds Miss M arian Holle. Miss Orfa C arr has accepted a posi tio n in th e Com m ercial B ank of B as sett. Miss C arr replaces C hantry Spann, w ho w orked a t the ban k u n til a sh o rt tim e ago. Carl Schm eichel of th e B roken Bow State B ank re p re se n te d th a t in s titu tion a t th e Ju n io r B a n k e r’s Conven tion held in H astin g s last m onth. Junior Bankers Meet Accepts New Position New Employe N ebraska S tate B ank of South Sioux City and th e W eiler F inance Com pany of A udubon have applied to th e state b an king d ep artm en t for sm all loan li censes. H earing has been set for No vem ber 14th. Delegate to Convention T he W ashington County B ank of Blair, w hich began an extensive re m odeling program several m onths ago, has now com pleted its im prove m ents. Accepts Position Miss R u th Longly, a grad u ate of th e L exington high school and L in coln School of Commerce, has ac cepted a position w ith th e F irs t N a tio n al B ank a t A uburn, N ebraska. Entertain Bank Employes Mr. and Mrs. E. G. Schellpeper en te rta in ed th e em ployes of th e Cones PA U L W . SH O O LL Mr. Shooll, w ell k n o w n to N ebraska bankers throughout his several years of N o rth w estern B a n ker representa tion there, w ill be calling at yo u r bank soon to obtain item s of new s about your in stitu tio n and its personnel, and happenings of co m m u n ity in terest in w hich yo u r bank is active. Y our co operation w ith Mr. Shooll w ill be great ly appreciated. N orthw estern Banker N ovem ber 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40 • N E B R A SK A $286,284,000 and tim e deposits totaled $61,507,000. Loans and discounts of th e re p o rt ing b an k s am ounted to $146,707,000, an increase of $25,767,000 over th e Ju n e 29, 1940, total. D irect and g u aran teed obligations of th e U nited States g o v ern m en t listed by th e N ebraska b an k s am ounted to $72,993,000 on Ju n e 30, 1941. O ther se curities totaled $31,342,000. Loans and discounts of th e 13,423 in su red com m ercial b anks th ro u g h o u t th e co u n try totaled $19,913,000,000, an increase of $2,899,000,000 or 17 p er cent over th e am o u n t rep o rted Ju n e 29, /¿ ¿ a d i v A a t 't f o t f about the PR O FITA B LE " P ^ Y C " (P ay-as-Y ou-C heck) Checking Plan! NEWS * 1940. Deposits increased from the $58,425,000,000 rep o rted th e previous y ear to $65,617,000,000, th e h ighest fig u re since inau g u ratio n of deposit in surance. Attends Convention E d g ar Scheips, a ssistan t cashier of th e F irs t N ational B ank of F airb u ry , atten d ed th e convention of N ational A ssociation of B ank A uditors and C om ptrollers, w hich w as held a t th e P alm er H ouse in Chicago from Octo b er 8th to October 11th. W hile in Chicago Mr. Scheips also atten d ed the N o rth w estern - W isconsin f o o t b a l l game. Resigns Position Mrs. W allace Landon, w ho has been em ployed by th e F irs t N ational B ank of Gordon for over fo u rteen years, recen tly resigned h e r position a t the bank. Mr. and Mrs. L andon have p u r chased a farm n ear Gordon, w here th ey plan to m ake th e ir home. Clell Elw ood w ill replace Mrs. L an don a t the bank. District Meeting Held ”We are gratified with e ery phase of the 'PAYC* no minimum-balance system. «O u r e x p e r i e n c e would seem unmistakable evidence o the public need for a payas-you-go c h e c k i n g ac Some seventy b an k ers and others from th e F o u rth regional d istrict a t tended th e convention of th e o rgan ization in Falls City recently. Tow ns w ith in th e d istrict rep resen ted w ere F alls City, A uburn, B urchard, Daw son, DuBois, H um boldt, Johnson, Nem ah, Paw nee City, Table Rock and Tecum seh. C orrespondent banks in Lincoln, St. Joseph and K ansas City w ere also represented. H erm an W. Schepm an, cashier of th e Jo hnson County B ank of T ecum seh, w as elected p resid en t of th e dis trict. K. G. Sandrock of F alls City w as chosen vice presid en t and Max C hurch of DuBois secretary-treasurer. One d irector w as nam ed for each of th e five counties. Those elected w ere Roy D irks of A u burn for N em ah county, R udolph K ovanda of E lk Creek for Jo h n so n county, R ichard M cM ullen of Stella for Richardson, M aurice V an H orne of Paw nee City for Paw nee county and J. R. Stevenson of N ebraska City for Otoe county. By-laws w ere am ended to allow Otoe county to become a m em ber, th e four counties previously having m em bership being R ichardson, P aw nee, N em ah and Johnson. H. Gramm an of A dam s gave a sh o rt ta lk ex plaining th e Ju n io r B an k ers’ Associa tion and Senator Otto Kotouc Jr. of H um boldt spoke briefly of th e sm all loan law. E lm er H allstrom of Avoca w as the principal speaker an d dis cussed in detail th e sm all loan law. New Officers The official d ep artm en t of th e D iller State B ank has been reorganized as follows: O. J. M ayborn, president; Mrs. O. J. M ayborn, vice president; W. E. A nderson, cashier; and Mrs. E tta May born, director. Thorley Named President At a recen t m eeting of the directors of th e Com m ercial N ational B ank of A insw orth, H. G. T horley of Springview w as nam ed president, to fill the vacancy caused by th e death of his father, G. H. Thorley, w ho headed the Com m ercial B ank for m any years. count service, especially when operated along such a high level of efficiency as the 'PAYC' system af O fords." u t - o f - T o w n B a n k s •Name of bank on request O ut-of-tow n banks and bankers w ill find here com plete banking fa cilities for prom pt and Recent " P A Y C " Purch ase r: economical handling of accounts in Chicago. We F IR S T N A T IO N A L B A N K would appreciate the opportunity o f serving you. O F T H E B L A C K H IL L S H O T S P R IN G S , S. D A K . Ask a "U.S ." repre se ntative for com plete inform ation about the " P A Y C " plan, or write to — UNITED STATES CHECK BOOK CO. OM AHA, NEBRASKA N orthw estern B anker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C i t y N a t i o n a l AND T R U S T 2 0 8 S O U T H C O M P A N Y H a n k o f Chi cago L A S A L L E ( Member Federal Deposit Insurance Corporation) S T R E E T 41 years, is th e new chairm an of the ag ricu ltu ral com m ittee of th e Omaha C ham ber of Commerce. ,1. F . M cD erm o tt, vice-president of th e F irs t N ational B ank of Omaha, is the general ch airm an of th e 1941 C hristm as seal cam paign of th e Ne brask a T uberculosis association. Mr. M cD erm ott also is he newlyelected com m ander of th e N ebraska departm ent, A m erican Legion. He has also been designated by th e U nited States tre a su ry d ep artm en t as chairm an of th e defense saving cam paign in N ebraska. Miss M yrtle Johnson, dau g h ter of E . J o h n so n , p resident of the Live Stock N ational B ank of South Omaha, and Mrs. Johnson, w as a n nounced as a princess to serve a t the Ak-Sar-Ben ball Oct. 24. A t M acM urray College, Jack so n ville, 111., she has been elected social ch airm an of th e M acM urray branch of th e A ssociation of Childhood E duca tion and w as one of 15 girls chosen for m em bership in th e T heta Sigma society. A lv in T H E w a te r d ep artm en t of O m aha’s F arm ers w ho w ish to convert th eir M etropolitan U tilities D istrict w ill c u rre n t incom e into insurance m ay be sh o rt $446,500 of th e $2,668,000 deposit it w ith th e bank, w here it will needed to pay off o u tstan d in g w a te r d raw com pound in te re st at the sam e bonds w h en th ey m a tu re D ecem ber 15, ra te borrow ers are paying for land G eneral M anager W alter B yrne said b an k loans—3% per cent. recently. . Dr. W illard Quigley, ch airm an of th e F o r th e first th ree-q u arters of 1941, d istric t’s board, said he an ticipated Om aha b ank clearings w ere up 19.3 th e board w ill m eet th e shortage by p er cent and b ank debits 21.2 p er cent tem p o ra ry loans from accum ulated re com pared w ith last year. Septem ber increases w ere 41.3 per cent for clear serves in th e gas d ep artm en t. ings, 29.9 per cent for debits. T itle is v ested in th e F ed eral L and T h o m a s H o d g so n , a ssistan t counsel B ank of Omaha, th e F ed eral In te rm e diate C redit B ank of Omaha, Om aha of th e F ederal R eserve b ank of M in neapolis, urged 180 credit union m em P ro d u ctio n C redit corporation and th e O m aha B ank for Co-operatives, of a bers atten d in g a m idw est d istrict b an half-block of g ro u n d on th e so u th side q uet at Omaha, to cu rtail th e ir buying, of Dodge stre e t b etw een 19th and 20th and to save for a day w hen civilian p lan ts are back in full operation. streets, recen tly pu rch ased by th e F a rm C redit ad m in istratio n as th e site O ther speakers included Jo h n P h il for a new F a rm C redit b uilding in lips, Jr., K ansas City F ederal R eserve B ank a ssistan t cashier. Omaha. The agency is now housed in re n te d F ig u res in response to a national qu arters. b ank call as of Sept. 24 show ed total b an k deposits of $160,010,616 in Omaha, W a lla c e S p ear, tr u s t officer of the com pared w ith $142,959,519 on Ju n e F irs t N ational B ank of Omaha, w as a 30. Loans totaled $60,820,771 com pared m em ber of th e h u n tin g p a rty of G ov w ith $55,998,404 Ju n e 30th. er n o r N e ls S m ith o f W y o m in g on a Sept. 24 figures by individual banks: p h e a sa n t shoot in South D akota re Loans Deposits cently. Om aha N a t’l . $ 62,011,501 $20,206,910 F irs t N a t’l . . . 31,244,857 16,105,162 The m arriag e of Miss Jessie Clark, U. S. N a t’l 6,262,091 33,959,380 d au g h ter of P re sid e n t W . D a le C lark Live Stock N at’l 16,600,338 10,241,333 of th e Om aha N ational Bank, and 3,679,581 Stocky’ds N at’l 9,828,020 Mrs. Clark, w as an ev en t of Oct. 18th. P ack ers N atl 1,693,940 3,118,774 She m a rrie d Jo h n H. Schirding of Douglas C ounty P etersb u rg , 111. A reception followed B ank ............ 1,540,455 687,985 a t th e F o n tan elle hotel. South Omaha Savings B ank 889,317 469,285 R o b ert H a ll, of th e N o rth Side B ank 817,974 474,484 N o rth Side Bk. of Omaha, has been elected tre a s u re r of a reorganized U n iv ersity of N e T otals ........ $160,010,616 $60,820,771 b ra sk a A lum ni A ssociation in Omaha. A n d r e w K o p p eru d , vice-president of The O m aha F e d e r a l L an d B a n k has th e Omaha F ed eral L and B ank for 16 y ears and a director of the b ank 20 offered a new service to farm ers. M rs. .1. T. S te w a r t, 3rd, wife of the cashier of th e F irs t N ational B ank of Omaha, and th e ir children, G ertrude and Jim m y, are back in Omaha after sum m ering at th e S tew art cottage a t Lake Okoboji. Mr. S tew art spent week-ends a t th e lake. G w y e r H. Y a te s, form er Omaha banker, and Mrs. Yates arriv ed in late October for a visit in Omaha. They left tw o y ears ago. W illia m A. S a w te ll, Jr., son of th e presid en t of the Stock Y ards N ational B ank of Omaha and Mrs. Sawtell, w as adm itted to federal co urt practice in Omaha recently. He is a g raduate of th e U niversity of N ebraska law school. Led by C. W . M ead, president, the N ebraska Bond and M ortgage com pany of Omaha sent a delegation to th e 28th an n u al convention of th e M ortgage B an k ers’ A ssociation of A m erica in New Y ork early in Oc tober. Mr. Mead is a m em ber of th e board of governors of th e association. NEBRASKA CO N VEN TIO N (C ontinued from page 14) count can, and will, be adequately pro vided by our com m ercial banks. “W e reite ra te our h e a rty endorse m ent of the dual system of banking in the U nited States, and express con tin u ed opposition to any fu rth e r ex tension of b ranch banking. We, th e re fore, urge su p p o rt of any legislation N orthw estern B anker N ovem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 • N E B R A SK A w hich w ould ‘freeze’ b ra n c h b an k in g in its p re se n t status. “The b an k s of N ebraska have al w ays been th e n a tu ra l lending ag en cies of th e vario u s com m unities of th e state. W e oppose any legislation w hich seeks to re tire th em from an y portion of th a t function.” Close to 700 re g istra tio n s w ere filed a t th e N ebraska convention—not a reco rd attendance, b u t a good tu rn o u t considering th a t th e Ju n io r B ankers of N ebraska w ere m eeting in H astings th e follow ing week. The program w as N E WS of th e usual h igh caliber, arran g ed by S ecretary H ughes, and th e e n te rta in m en t featu res w ere especially good. Carl Ganz, in his p resid en t’s report, said he believed th e A ssociation h ad com pleted a n o th er successful year, and in legislative m atters th e N ebraska A ssociation accom plished m ore in N e b rask a th a n did th e A m erican B ankers A ssociation in W ashington. B ankers all over th e country, said Mr. Ganz, are confronted w ith serious problem s —th e economic conditions w ith w hich th e y are faced are in tern atio n al in Guaranty Trust Company of New York Fifth Ave. at 44th St. LONDON ' VICHY - Madison Ave. at 60th St. PARIS BRUSSELS Condensed Statement of Condition, September 30, 1941 RESOURCES Cash on Hand, in Federal Reserve Bank, and Due from Banks and B a n k e r s.................................. $ 909,006,759.19 1,157,552,026.48 U. S. Government O b lig a tio n s .................................. Public Securities 58,342,470.96 Stock of the Federal Reserve Bank . . . 7,800,000.00 Other Securities and Obligations . . . 19,538,325.32 Loans and Bills P u r c h a s e d .................... 520,529,278.57 Credits Granted on Acceptances . . . . 4,760,137.53 Accrued Interest and Accounts Receivable 8,259,492.84 Real Estate Bonds and Mortgages 1,774,880.17 2,687,563,371.06 11,012,624.19 1,349,841.25 Bank Buildings . Other Real Estate Total R esources.................................. $2,699,925,836.50 LIABILITIES D e p o s it s .......................................$2,388,555,610.60 Checks Outstanding . . . . . 13,024,435.42 $2,401,580,046.02 Acceptances.................................. ..... Less: Own Acceptances Held lor Investm ent..................... $7,814,805.31 3,054,667.78 Liability as Endorser on Acceptances and Foreign B i l l s ............................................................... Foreign Funds B o r r o w e d ............................................ Dividend Payable October 1, 1 9 4 1 ......................... Items in Transit with Foreign Branches and Net Difference in Balances Between Various Offices Due to Different Statement Dates of Some Foreign B r a n c h e s ..................................................... Miscellaneous Accounts Payable, Accrued Taxes, etc. 4,760,137.53 79,600.00 203,400.00 2,700,000.00 2,374,525.16 9,852,917.63 2,421,550,626.34 C a p i t a l ............................................$ 90,000,000.00 Surplus F u n d .................................. 170,000,000.00 Undivided P r o f i t s ......................... 18,375,210.16 Total Capital Funds Total Liabilities . . . . 278,375,210.16 $2,699,925,836.50 Securities carried at $15,731,309.32 in the above Statement are pledged to qualify for fiduciary powers, to secure public monies as required by law, and for other purposes. This Statement includes the resources and liabilities of Brussels Branch as of August 31, 1941, and other Foreign Branches as of September 24, 1941. Member Federal Deposit Insurance Corporation N orthw estern B anker N ovem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • scope an d repercussions cannot be es caped—som e of these problem s w ill be w ith us for m any y ears—th e w ar w ill have to be paid for, and it is up to b an k ers to solve th e ir problem s or th e y w ill have no banks to m anage. One of th e m ost in terestin g talk s a t th e convention w as given by L. F. L iv ingston of th e D uP ont C orporation, w ho h ad on display hu n d red s of new and useful products resu ltin g from re cent application of chem istry to busi ness developm ent. M any of th ese new products have ju s t been perfected and th e ir application to business and th e consum ing public has y et to be found, w hile o thers are already in com m er cial production and are finding rapid sale. Due to th e defense em ergency, Mr. L ivingston said, th is co u n try is advancing scientifically in a few years com pared to 25 y ears w hich w ould have been necessary u n d er norm al conditions. NEBRASKA NEW S NOTES (C ontinued from page 20) m en t a t th e rear, is being com pletely rem odeled and enlarged. The officers’ q u a rte rs w ill be m oved to th e re a r of th e lobby, w ith a p riv ate office for P resid en t T. B. Strain and an adjoin ing office for a d irecto rs’ or conference room. T he ceiling in th e m ain lobby is being reb u ilt to accom m odate indi rect fluorescent lighting, and th e sta ir w ay leading dow n to th e tru s t d ep art m en t and v au lts w ill be changed to open from a position n ear th e b ank entrance. T he b an k has tak en over a large portion of th e second floor of the building, and here w ill be q u artered th e tra n s it and clerical departm ent. C. W. B attey, cashier, told us th e im provem ents w ere expected to be com pleted by late December. W ayne C. Clark has recently joined the Citizens S tate Bank, D orchester, as a ssista n t cashier. His form er hom e has been in Illinois, w here the Clark fam ily cam e from originally. D or ch ester is in the m idst of a new paving project, w hereby the m ain street of the tow n w ill be surfaced for its entire len g th to connect and m ake a sh o rt cut w ith H ighw ay 6 at th e n o rth of th e city. H . J. Southw ick, presid en t of the F irst N ational B ank of F riend, looked (T u rn to page 44, please) YOUR STATE BANKERS A SSO CIA TIO N O FFICIAL SAFE, V A U LT A N D TIMELOCK EXPERTS F. E. D A V E N P O R T & C O . OM AHA 43 it sought to hold J. J. F ra n ta of S aun ders county liable on a note he had signed w ith Joe C. F ra n ta . The la t te r had confessed judgm ent. J. J. F ra n ta denied he had m ade personally th e in te re st paym ents recorded on th e back of the note, w hile th e ban k cash ier said he did and show ed by th e rec ords th a t F ra n ta ’s ban k account had been charged w ith th e check. The court says th a t it is relu c ta n t to set aside ju ry verdicts on m atters of fact, b u t th a t in th is case th e v erdict is so clearly w rong as to induce th e belief th a t it m u st have been found th ro u g h passion, prejudice, m istake or some m eans not ap p aren t in th e record: In Locals Brief Nebraska News C. A. P eterson, cashier of th e Deuel T he last legislature “did a fav o r” H E N ebraska b an k in g d ep artm en t C ounty S tate B ank of Chappell, re re p o rte d th a t 114 N ebraska sm all to b o th th e N ebraska b an k er and th e loan com panies had been relicensedsta te w hen it reduced th e nu m b er of ports th a t th e last of th e p referred req u ired an n u al b an k calls to three, stock of his b an k w as re tire d on Oc u n d e r th e new state law passed by State B an k in g D irector W ade R. Mar tober 1, 1941. T he capital stru ctu re, th e last legislature. w hich w as form erly $5,000 common, tin said. T he d e p a rtm e n t said 18 applications $20,000 p referred and $5,000 surplus, M artin m ade th is observation in still w ere pending, including 10 from ban k s p lan n in g to e n te r th e sm all loan announcing th ere w ould be no bank w as changed in 1935 to $25,000 com field. T h ere w ere 152 sm all loan li call u n til D ecem ber 31st. In previous m on and $18,000 surplus. years, an au tu m n call has been issued censes issued last year. Mr. P eterso n also rep o rts th a t th ere in early October. H e explained his d ep artm en t had has been a considerable increase in All d irecto rs of th e L incoln Jo in t Stock L and B ank w ere re-elected at decided to take advantage of th e bill deposits in th e banks this fall over th e a n n u al m eeting. T hey are: W. A. passed by th e 1941 u n icam eral a u th o r th e fall of 1940, deposits last y ear izing th e b an king division to dispense being $400,000, and th is y ear $650,000. S elleck, W alter A nderson, W. AV. Burr, w ith one of th e reg u lar q u a rte rly calls. John I j . T eeters, C. C. Cartney, AAh E. J. A. K ucera, cashier of th e C lark “F o u r calls a y e a r are not necessary B arkley, K atharine D ougan, E. H. son B ank of Clarkson, has been nam ed to inform us of th e condition of state Laiikart and Dr. A\r. C. Becker. R eports indicated th a t liquidation is b an k s,” M artin said. “T hree, or even as ch airm an of th e drive for funds in th e H igh E agle d istrict of th e Covered two, calls are sufficient.” w ell u n d e r way. In th e last nine W agon Council of th e Boy Scouts of m o n th s th e bonds o u tstan d in g have Am erica. T he cam paign is for funds The P latte V alley Bank, form erly been reduced $1,100,000. T hey p resen tly stan d a t a little over $4,000,000, com B ank of M orse Bluff, w on a rev ersal to operate Scouting du rin g th e balance of 1941 and for 1942. p ared to th e 1930 peak of $42,000,000. in suprem e court of an action in w hich In th e sam e nine m onths, $900,000 w o rth of land h as been sold, w ith 30 p e r cent of th e price received in cash and th e price obtained 96 p er cent of th e value carried on th e books. R e m ain in g holdings are ab o u t 350 ea st "d e p e n d a b l e " ern N eb rask a farm s and 95 in Iowa. L oans have been reduced by $400,000. For almost one third of a century The Officers re-elected a t a m eeting of th e d irecto rs w ere: B arkley, president; Continental National Bank has assured C artney, T eeters an d Selleck, vice every Nebraska banker of the utmost presid en ts, an d Miss Dougan, secre in dependable correspondent service tary -treasu rer. T T he state b an k in g d e p a rtm e n t has g ra n te d new sm all loan com pany li censes to th e L exington State, F o rt K earn ey S tate and H erm an State banks. Bank Help W anted M an y a ttra c tiv e p o s itio n s now open from C hicago to P acific C o ast fo r p o s tin g m a c h in e o p e ra to rs, ste n o g ra p h e rs, te lle rs a n d a s s is ta n t cash ie rs. C o u n try b a n k e x p erie n ce p re fe rre d . W rite fo r a p p lic a tio n b la n k . in Lincoln. (O N TIN EN TA L R A TIO N A L B * k LINCOLN Member Federal Deposit Insurance Corporation T H E C H A R L E S E . W A L T E R S CO. P . O. B o x 1313, O m aha, N e b r a sk a N orthw estern Banker N ovem ber Ì9 H https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 Mrs. J. A. K ucera, w ife of the cashier of th e C larkson Bank, w as th e p rin ci pal speaker at th e county convention of th e W om en’s Clubs of Dodge coun ty, w hich w as held a t H ooper last m onth. H er topic w as “The P e r m anency of a Dem ocracy.” E. T. W arnem unde, cashier of the W inside S tate Bank, rep o rts the addi tion of Miss Bessie Rew to th e clerical staff of th e bank. The b ank has been show ing a steady increase in business, w hich necessitated th e increasing of th e force. with PAY-AS-YOU-GO CHECKING ACCOUNTS • Two profitable rules: Offer e x tra benefits...tell prospective customers about them. 1 Todd Super-Safety Checks p ro vide the extra benefits: Users are pro u d to issue checks of such dis tinctive appearance. T hey ap p re ciate the w ay Super-Safety defies a lte r a tio n a n d c o u n te r f e itin g th ro u g h exclusive safety features; a n d ev e ry c u sto m e r h as p o s itiv e a s s u ra n c e a g a in s t su c h losses, because this protection is g u aran teed by insurance. 2 T he Todd Com pany w ill gladly te l l y o u h o w n u m e ro u s o th e r banks have successfully m erchan d is e d P ay-A s-Y o u -G o C h e c k in g A c co u n ts. A sp e c ia l s o u n d slid e film w ill dem onstrate these tested m ethods to your employees. In crea se your b a n k 's p r o fits — se n d th e c o u p o n fo r d e ta ils now. T h e Todd C om pany, Inc. Rochester, N . Y Please send descriptive literatu re th at outlines tested m ethods for creating profitable Pay-As-YouG o C hecking A ccounts w ith Todd Super-Safety Checks. B ank N am e----------------------------------------------------City frit"' Tly ROCHESTE OFFI CES IN JEW YORK J Cl PAL CI TI ES N orthw estern B anker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Cozad S tate B ank is now p u t tin g out for th e convenience of its custom ers a sm all envelope called the “H andi-Pocket Coin B ank.” On the fro n t of th e envelope th ere is a sm all slot for in sertin g dimes, as well as a place for checking deposits of from 10c to $3.00. The m otto is “Save a Dime a Day.” H. C. Schum ann, p resid en t of the Citizens S tate B ank of St. M ary, N e b raska, rep o rts th a t th e capital stock of th e b ank w as recen tly increased from $10,000 to $15,000. Mr. Schu m an n also states th a t th e su rp lu s is now $5,000 and th a t contingent re serves are $5,000. Ben B. M cNair, vice presid en t and cashier of th e Colum bus B ank of Columbus, states th a t his bank, w hich com m enced business on F e b ru a ry 1, 1935 w ith capital of $50,000, of w hich $20,000 w as com m on and $30,000 w as p referred, has now re tire d its p re ferred. C apital and su rp lu s and u n divided profits are now $70,000. Mr. Blouch re tu rn e d recently from a vacation trip th ro u g h the New E ng land states, w here he visited an au n t in M assena, New York. It is a t Massena w here th e N um ber One alum i num p lan t of th e co u n try is located, and Mr. Blouch said an o th er huge p lan t is now u n d er governm ent con stru ctio n n ear th e sam e location. He said it appeared th a t business in the E a st w as b e tte r th a n in th e W est, due of course to m ore of th e in d u stries th ere deep in tu rn in g out defense products. You folks w ho th in k N ebraska is all dried up and ready to blow aw ay should have seen th e vegetable dis play in th e lobby of th e Geneva State Bank. T here you w ill find a sweet potato w eighing five pounds and five ounces, and a sugar beet w hich w hen dug w eighed ten pounds—eith er one of them w ould m ake a good m eal for a large fam ily. N ot bad, we say, in a com m unity devoted largely to dry farm ing. E arl H. W ilk in s, presid en t of th e G eneva S tate Bank, had ju st retu rn ed from deer h u n tin g in Idaho in th e Sal m on R iver country. He got his deer, by th e way, and has some m ovies to prove it to those in terested and doubt ful. J. J. K lim a, cashier of th e F arm ers and M erchants Bank, M illigan, rep o rts satisfactory business in his com m u nity, th e B ohem ian tow n w ith an Irish nam e. vVe learned th e com m unity w as originally settled largely by p er sons of Irish descent, and some of the old settlers are still there, b u t the business m en of th e city are now al m ost en tirely Bohem ian.— T H E ENT). NEBRASKA NEW S NOTES (C ontinued from page 42) a fte r business w hile A. H. F rantz, cashier, took a trip duck h u n tin g up n ear Oshkosh. Mr. F ra n tz has a son residing in Chicago, and th e la tte r ac com panied his father. T here is p len ty of m oisture in th e vicin ity of E xeter, according to L. T. B louch, cashier of th e F irs t N ational B ank there. In fact, all banks rep o rt th e b est m oisture conditions for th e p re se n t tim e of y e a r w hich have ex isted in N ebraska for several years. W ater w as standing in m any of th e fields from Crete on w est—in some cases a little too m uch, since rain s at th e w rong tim e had retard ed som e w h at th e drilling of w in te r w heat. W h eat p lanted some w eeks ago is up and w ill m ake an excellent grow th before th e extrem ely cold w eather starts. TW ENTY YEARS A H EA D O F THE PARADE (C ontinued from page 13) riod w as launched. T his quota of sales has been m ain tain ed for over tw o y ears u n d er none too favorable con ditions, and it is ap p aren t th a t th e goal w ill be reached w ith in th e speci fied time. Over $1,000,000 in d elinquent taxes w ere paid. O rdinary business prac tices have been adopted. T he force has been reduced by th irty -th ree peo ple. E xpenses really are dow n and every phase of th e D ep artm en t’s w ork is progressing at an increased pace. P erhaps the b ig g est and m ost im p ortant change in the D epartm ent w as the reorganization of the h uge bonded debt. T he state ow ed $37,000,000 in non-callable bonds, bearing an average of ap proxim ately four per cent inter- 45 -• est and all m aturing w ith in a ten-year period. A s stated above, th ese m aturi ties, togeth er w ith in terest p aym ents, m ade it n ecessary for the D epartm ent to raise as m uch as $7,000,000 in som e years. D ep artm ent officials w anted to escape the dangers of th ese unm eetable debts and the hazards of a fluctu a tin g m oney m arket. T hey co nferred w ith some of th e best financial a u th o ritie s in th e n a tion, including m any South D akota an d M innesota ban k ers. W ith the assistan ce of A tto rn ey G regory B ru n k of Des Moines, th e V. W. B rew er Com p an y of M inneapolis, L ehm an B ro th ers of N ew York, and m an y others, a p lan w as devised to level th is debt w ith o u t asking th e bond holders to m ake an y sacrifices. The plan, w hich has becom e gen erally accepted th ro u g h o u t th e nation, is know n as th e level debt service plan; an d bonds, in excess of our ab ility to pay, w ere refu n d ed by a “hum p-back” coupon bond. T hese bonds provided th e sam e ra te of in te re st as th e o u tstan d in g bonds for a like period and th e n w ere extended from te n to tw e n ty y e a rs a t a 3% ra te of in terest. E nough of th e fo rm er bonds w ere secured and th e new bonds sold to p ractically level our debt service re quirem en ts. South D akota w ill nev er hav e to re fu n d a n o th e r R u ral Credit bond. A ppro p riatio n s for th e su p p o rt of th e D ep artm en t for th e p re se n t bi en n iu m have been reduced $1,600,000. A bout th e only legislative or ad m in istra tiv e problem rem ain in g is to see th a t b u siness practices, n o t political expediency, co ntinues to control th e d ep artm en t. South D akotans are p roud of th e w ay th e y have faced th e ir problem s an d born e th e ir b u rd en s d u rin g some v ery try in g years. T hey have a de te rm in a tio n to be independent, selfsu p p o rtin g and to m eet all th e ir obli gations. T h eir ex p erim en ts in social istic v e n tu re s have been v ery costly an d painful, an d th e y are now on th e rig h t track , determ in ed th a t n o th in g like th is shall ever h appen to South D akota again.— T H E EN D . Council Appointments A n nouncem ent of th e ap p o in tm en t of tw elve m em bers a t large to the exec u tiv e council of th e A m erican B ankers A ssociation w as m ade by H en ry W. K oeneke, new ly elected p resid en t of th e association. Mr. K oeneke is p resi d en t of th e S ecurity B ank of Ponca City in P onca City, Oklahom a. The tw elve appointed by Mr. K oen eke were: N E B R A SK A N EWS H a rry A. B ryant, president, P a r sons Com m ercial Bank, Parsons, K an sas; W illiam S. Gray, Jr., president, C entral H anover B ank and T ru st Com pany, New York, New York; R obert son Griswold, vice president, M aryland T ru st Company, B altim ore, M aryland; E ugene P. Gum, secretary, O klahom a B ankers A ssociation, Oklahom a City, Oklahoma; G. C arlton Hill, vice p resi dent, F ifth T h ird U nion T ru st Com pany, C incinnati, Ohio; J. R. Leavell, president, C ontinental Illinois N ation al B ank and T ru st Company, Chicago, * Illinois; R. C. Lilly, president, F irst N ational B ank of S aint Paul, Saint Paul, M innesota; B. M urray Peyton, president, M innesota N ational Bank, D uluth, M innesota; Sam uel N. P ickard, president, N a t i o n a l M anufacturers Bank, N eenah, W isconsin; Charles E. Spencer, Jr., president, F irs t N ational Bank, Boston, M assachusetts; J. C. W illiams, vice president, Commerce T ru st Company, K ansas City, M issouri; J. S. Rogan, president, A m erican N a tional Bank, Indianapolis, Indiana. C o n tin en ta l I llin o is N a tio n a l Bank a n d T rust C om pany O F C H IC A G O Statement of Condition, September 24,1941 RESO URC ES Cash and Due from Banks................................ $ 818,185,017.28 United States Government Obligations, Direct and Fully Guaranteed......................... 624,063,801.66 Other Bonds and Securities................................ 58,987,537.99 Loans and Discounts............................................ 256,348,753.49 Stock in Federal Reserve Bank....................... 2,850,000.00 Customers’ Liability on A cceptances............. 586,877.41 Income Accrued but N ot C ollected................. 3,040,857.32 Banking H o u se ..................................................... 12,075,000.00 Real Estate Owned other than Banking House 2,210,222.39 $1,778,348,067.54 l ia b il it ie s D ep osits........................... $1,644,392,843.76 A cceptances............................................ 592,217.32 Reserve for Taxes, Interest and E x p en ses.. . . 5,701,893.00 Reserve for C ontingencies..................... 17,329,344.98 Income Collected but N ot Earned.... 411,637.55 Common S tock ............................................ 50,000,000.00 Surplus...................................................... 45,000,000.00 Undivided Profits................................... 14,920,130.93 $1,778,348,067.54 U nited States G overnm ent obligations and other securities carried at $183,355,231.05 are pledged to secure public and trust deposits and for other purposes as required or perm itted by law Member Federal Deposit Insurance Corporation N orthw estern Banker N ovem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 46 S ta te m e n t o f C o n d itio n S e p te m b e r 24, 1941 LIV E STOCK NATIONAL BANK OMAHA RESOURCES LIABILITIES Loans and Discounts........................... $10,241,333.24 Bonds and Other Securities............... 6,141.86 Stock in Federal Reserve Bank......... 30,000.00 1.00 Banking House and Fixtures............. Other Real Estate............................... None U. S. Gov. Securities....$2,646,392.19 Cash, Sight Exchange and Due from Federal Reserve Bank............. 5,196,254.07 7,842,646.26 Capital Stock (Common).....................$ 500,000.00 Surplus (Earned)................................... 500,000.00 Undivided Profits................................. 313,549.27 Reserve for Taxes, Interest, etc....... 189,077.16 Unearned Discount............................. 9,657.83 Dividend Payable Sept. 30, 1941..... 7,500.00 Deposits: Banks ........................ $8,635,661.15 Other Deposits.......... 7,964,676.95 16,600,338.10 $18,120,122.36 $18,120,122.36 CAPITAL, SURPLUS & UNDIVIDED PROFITS September 24, 1933 September 24, 1937 September 24, 1941 - $ 616,038.60 877,379.88 1,313.549.27 - LOANS & DISCOUNTS - $ 1,660,388.45 4,280,256.42 10,191,821.96 DEPOSITS - T h i s b a n k w e l c o m e s the opportunity to render added service in the Nation’s Defense Program. In k e e p i n g with o u r policy of full co-operation with the Nation’s Defense effort we desire also to extend adequate and helpful credit to all approved business concerns including the vital Livestock and Agricultural enterprises. A l v i n E. J o h n s o n , President. This Bank Has No Affiliated Companies Member of Federal Reserve System and Federal Deposit Insurance Corporation N orthw estern B anker N ovem ber 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 4,986,823.44 13,554,317.08 16,600,338.10 47 a p ar value of $75 per share. The G rafton b ank is one of th e oldest in th e county. G. H. B ringolf is p resi dent and executive officer in charge of th e bank. NEW S Receives Promotion FRANK W ARNER S ecretary Des Moines A. T. D O N H O W E P re s id e n t Entertain 4-H Boys Change Corporate Name T he d irecto rs and officers of th e W illiam s Savings B ank e n te rta in e d th e L iberty-R ose Grove 4-H club boys a t a d in n e r last m o n th a t th e C entral cafe in W illiam s. Rev. H arold P u t n ey and C ounty A tto rn ey Lloyd K a rr of W eb ster City w ere guests as w ell as H en ry Hill, leader, and E a rl M ark, a ssista n t leader of th e club. F o rty -th ree atten d ed th e d in n er and later a p ro g ram w as p resen ted in th e room s over th e bank. W. D. H an n a an d Com pany of B u r lington, Iowa, has changed its cor p o rate nam e to H anna-K ram er Com pany. B ranch offices are m aintained a t Cedar Rapids, W aterloo, Sioux City, K eokuk, and W ashington. Farm Appraisal School Officials of th e F ed eral L an d B ank of O m aha held a farm ap p raisal school a t E llsw o rth last m onth. M em bers of th e boards of directors of th e E lls w o rth and S tory City lan d b a n k asso ciations attended: including N. P. Olsen, T. Z. H enryson, Jo h n H. Jo h n son, D an Jacobson, Ju liu s K nutson, L. M. Johnson, Calvin Craw ford, and H. R. Sapp. T he la tte r is secretarytre a s u re r of th e six farm loan associa tio n s of H ardin, H am ilto n and S tory counties. L and b a n k officials from O m aha and F o rt Dodge w ere in charge of th e school w h ich w as held to fa m iliarize officers in th a t te rrito ry w ith m ethods of m aking ap p raisals of farm s on w hich to base federal land b an k loans. Hardin County Meeting B ankers of H ard in county m et last m o n th a t th e P ine Lake C ountry Club a t E ldora. T he ladies enjoyed bridge in th e afternoon and th e m en played golf. A tu rk e y d in n er w as served in th e evening in th e club room s w ith th e Rev. J. Leslie L eonard of B elm ond as g u est speaker. T he day w as in charge of W. K. Bram w ell, presid en t of the H ard in County Savings Bank. Increase Capital Stock A t a special m eeting of stockholders of th e F a rm e rs S tate B ank of G rafton held last m onth it w as unanim ously voted to increase th e capital stock of th e b ank from $10,000 to $15,000. U nder th e new capitalization, th ere w ill be 200 shares o u tstanding w ith Accepts Clerical Position V irgil R. Carlson of F rem ont, N e braska, has accepted a position on th e clerical force of th e D ecatur C ounty State B ank of Leon. New Employee Miss L o retta Beebee of Modale has accepted a position in th e P isgah Sav ings B ank of Pisgah. Accepts Position Jo h n K epple of N ashua has accepted a position as a ssistan t cashier of th e D enver Savings Bank. Appointed to Committee J. M. H utchinson, tru s t officer of th e D avenport B ank & T ru st Com pany, has been nam ed a m em ber of th e com m ittee on federal legislation of th e tru s t division of th e A m erican B ankers A ssociation for th e 1941-1942 organization year, according to an an nouncem ent by R ichard G. Stockton, presid en t of th e tru s t division. T his com m ittee acts as an advisory and vigilance group on all m atters of federal legislation, and is one of th e m ost im p o rtan t of th e tru s t division. Iowa Banks Have Excess Reserves of 209.72% Heads County Association N ick H olst, Onslow Savings B ank, re c e n tly w as elected p resid en t of th e Jo n es C ounty B an k ers A ssociation at a d in n e r m eetin g in A nam osa. He succeeds C harles L u ett, M onticello S tate Bank. O ther new officers include: L. B. M adson, Citizens S tate B ank, W yom ing, vice p resident; M elvin Ingw ersen, Onslow Savings B ank, tre a su re r, and L eo n ard J. W egm an, Citizens Savings Bank, A nam osa, secretary . F a rm e rs Savings B ank a t M artelle w as h o st to th e association a t th e m eeting. P aul M. Shain, of W aukee, Iowa, w ho joined th e force of th e C entral Savings B ank and T ru st Com pany of E m m etsburg on May 15, w as recently elected a ssistan t cashier of th e b ank by th e board of directors of th e in stitution. F th e 544 state banks in Iowa, th e p a rt of th e Iow a state banks. T he figures are as follows: only 50 of them are m em bers of th e F ed eral R eserve System , b u t Rifeserves of Iow a S ta te C h arte re d B anks B ased on R egulation D G iving New R eserve R equirem ents th e y w ere all m em bers and th e re to be M ain tain ed w ith F e d e ra l R eserve B anks serves of th ese banks w ere based on T otal C ash R eserves on S eptem ber 24, 1941............................ $172,407,476.88 R egulation D w hich has req u ired R equired V olum e of R equired R eserve m em bers of th e F ed eral R eserve Sys Tim e D epositsP eofrc e n t D eposits a ll S ta te B anks 6 $182,985,644.82 $10,979,138.69 tem to increase th e ir reserve req u ire D em and D eposits m ents, th e p er cent of actual reserve C ou n try B anks 14 257,647,469.29 36,070,645.70 and D eposits in excess of req u ired reserve of all th e D em of R eserve C ity B anks 20 43,075,840.80 8,615,168.16 544 banks w ould be 209.72 per cent. Mel W. Ellis, S u p erin ten d en t of th e $483,708,954.91 $55,664,952.55 D ep artm en t of B anking for Iowa, re T o tal req u ired re s e rv e ............................ $55,664,952.55 cently released th e figures w hich p re Excess reserve ........................................ $116,742,524.33 P e rc e n t of a ctu al re serv e in excess of req u ired sen t th is v ery excellent show ing on reserve, 209.72 p e r cent. O N orthw estern Banker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Comparison in Acres Planted with Soybeans 1920 nosoybeansplanted /nv^ a^ 1940 1,559,000acres jg Comparison of resources Bankers Trust Company ^ c* $A *3c 4,700,000 $ $ I 1920 c c c c c c c c c c c c c c c I 1940 v v v v y v y v v v v V v v v S S S $ $ S S $ i 23,399,000 6th and Locust Des Moines https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 50 • Receives First Group Policy T he C entral N ational B ank and T ru s t C om pany of Des M oines has received th e first group life insurance policy issued by th e B ankers Life Com pany of Des Moines. A bout 90 full tim e em ployes of th e b ank are covered by th e policy, w hich includes b oth life in su ran ce and p en sion benefits. Because th e b an k has had th e p rin cipal account of th e local life insur- IO W A NEWS • ance firm since 1908, it received group policy No. 1, it w as announced. E m ployes pay about one-third of th e in surance and an n u ity benefits costs w hile th e b ank pays th e re m ainder. Em ployes are covered by life in su ran ce ran g in g from $1,200 to $5,000, depending on th e ir salaries and th u s th e ir contributions. The am ount of pension, w hich be comes effective for w om en em ployes a t age 60 and for m en a t 65, depends on th e size and period covered by the paym ents. Bank Official Dies Jo h n W. H aw k, 68, a ssistan t vice presid en t of th e C entral N ational B ank and T ru st Com pany of Des Moines, died a t his hom e last m o n th of a h e a rt attack. Mr. H aw k had been em ployed at th e C entral N ational Bank, form erly th e C entral S tate Bank, th e last 30 years. P rio r to th a t he w as city au d ito r and for a tim e w as em ployed at the county courthouse. New Bookkeeper Mrs. F re d S trunce began w ork last m o n th in th e F irs t N ational B ank of Lenox as bookkeeper. She replaces Don Cofer w ho resigned w hen school sta rte d to begin his second y ear as com m ercial in stru c to r in th e Lenox school. Elect New Officers The board of directors of th e Pow eshiek County Savings B ank of B rook lyn recen tly revised its official list, electing C. W. F ow ler as president, C. C. E cklund, vice president, and Floyd M cAllister, cashier. D irectors of th e b an k rem ain th e same, nam ely, T. F. B uchenau, H ar ley H. B urch, L. E. D unton, C. C. E cklund, C. W. Fow ler, H. R. L ight and Otis Wood. Hon or H. R. Young A M B a n k id d le W fo r e s t B a n k e r s For nearly three-quarters of a century this bank has handled the accounts of bankers through out the mi ddle west. May we explain how this long experience can be made of value to you? LIVE STOCK N A T . O N A L BANK OF C H IC A G O H. R. Young, form er p resid en t of th e Iow a B ankers A ssociation w ho on Septem ber 25 com pleted 25 y ears as cashier of th e A m erican N ational B ank of A rlington, w as honored last m onth a t a b an q u et given at th e O. C. Miehe hom e in A rlington by b an k directors and employes. Mr. Y oung’s fa th e r and g ran d fath er both w ere bankers. He w as presented a gold w atch, and Mrs. Young and Mr. Y oung’s m other, Mrs. H. S. Young, also received gifts. Former Banker Dead F ra n k W. Dingley, 75, w idely know n form er b an k er an d real estate dealer, died at Algona last m o n th after a long period of ill health. F o r m any y ears Mr. D ingley w as cashier an d vice p resid en t of th e form er Algona S tate Bank. E s ta b lis h e d 1868 A • UNION STOCK YARDS M em b er Fe d e ra l D eposit Insurance Corporation N orthw estern B anker N ovem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Check Transactions High Check tran sactio n s th ro u g h banks of Iow a’s nine clearing house cities totaled $276,414,000 from Septem ber 3 to October 1, th is year, as com pared w ith $234,394,000 for th e like period of 1940. I t w as a gain of $42,020,000. 51 —• IO W A Des M oines led th e field w ith a to tal of $106,795,000. Sioux City w as second w ith $52,120,000 an d Cedar R apids th ird w ith $33,782,000. D avenport, w ith $24,883,000, nosed out W aterloo, w ith $23,647,000, for fo u rth place. Assumes New Duties B. L. McKee, vice p re sid e n t and cash ier of th e M uscatine B ank and T ru s t Com pany, M uscatine, h as ta k e n over his du ties as a m em ber of th e executive council of th e A m erican B an k ers A ssociation, hav in g been sw o rn in a t a m eeting of th e council held recen tly in Chicago, Illinois. Mr. McKee w as elected as an execu tiv e com m itteem an of th e A m erican B an k ers A ssociation, re p re se n tin g th e Iow a B an k ers A ssociation, a t th e a n n u al convention of th e sta te group held early in Septem ber. H e w ill hold office for th re e years, one m em ber be ing elected by th e state association each year. NEWS •ly know n in b anking and political cir cles, died last m onth a t his hom e in M onrovia, California, of h e a rt disease. H orace W. F o sk ett of Des Moines, a ssistan t vice p resid en t of th e E q u i table Life In su ran ce Com pany of Iowa, is a son. D irectors, all of Independence, are N. H. Tegen, Leo O’B rien, Leo Molloy and W illiam A rm strong. Accepts New Position R u th E v an s of O w atonna, M inne sota, has been em ployed by th e Iow a T ru st and Savings B ank of E sth erv ille as sten o g rap h er to fill th e place left v acan t by th e resig n atio n of Eileen M ortenson, w ho is now w orking in an Independence bank. Accepts Onawa Position Mrs. Lucille Yocum of Y utan, Ne braska, has accepted a position in the Onawa S tate Bank, tak in g th e place m ade vacan t by Miss E lizabeth H u n t ington w ho is em ployed in th e Live Stock N ational B ank in Chicago, Illi nois. Herbert Foskett Dead H erb ert I. F oskett, 79, a resid en t of Iow a for m ore th a n 50 y ears and w ide FIRST NATIONAL BANK M A SO N C IT Y , IO W A A GOOD BANK TO TIE TO $10,657,394 T o ta l A s s e t s ......................... A m o u n t o f D ep o sits C ap ital L ia b ility - - - 9,704,421 - - 873,778 October 10, 1941 i 1 i ONE OF IOWA’S TEN LARGEST BANKS F ra n k D. W illiam s (above), execu tiv e vice president, th e F irs t C apital N atio n al B ank of Iow a City, is re ceiving congratulations on his reelection as a directo r of th e Chicago F ed eral R eserve B ank (unopposed). Good w ork, F ran k ! New Bank Opens T he new ly organized S ecurity State B an k form ally opened in In d ep en d ence last m onth. T he p resid en t is J. F. Baden, form erly of L ake City, Iowa, an d th e vice p re sid e n t is R oger L. W heeland, also fo rm erly of L ake City. Jo h n Coran, Jr., B uch an an county tre a s u re r for eight years, w ill be cashier. O F F IC E R S F re d C . H e n e m a n .............................................................. P re s id e n t D ean H . L ig h t n e r .......................................................................... V ic e P re sid e n t C a r l A . P a r k e r .................................................................................V ic e P re s id e n t W illia m W . B o y d ....................................................................C a sh ie r D o u g la s G . S w a le ..............................A s s is t a n t V ic e P re s id e n t C a r d in a l S . T h o m p s o n .................. A s s is t a n t V ic e P re sid e n t R o y B . J o h n s o n ...................................................................A s s is t a n t C a sh ie r A lfre d M. H a ls o r ................................................................ A s s is t a n t C a sh ie r R a lp h E . W ile y ...................................................................... A s s is ta n t C a sh ie r H a r ry C . F is h e r ................................................................... A s s is ta n t C a sh ie r M e m b e r Federal D e p o s i t Insurance Corporation N orthw estern Banker N ovem ber Í9 'il https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 52 Is Being Bought or Sold? By Whom, and for How Much Per Acre? l 0 W ( t iO f ld A Survey on Iowa Real Estate Made by J. A. "Joe" Sarazen, Associate Editor H UMBOLDT— B. B. W atson, cash ier, F irs t N ational Bank: V ery little land changing h an d s here. In su ran ce com panies have added a su bstan tial increase to th e price of th e ir holdings in th is te rrito ry . No land has been sold to outside in v est ors. F ort D odge —F. C. M oeller, p resi dent, F o rt Dodge N ational Bank: T here is som e land changing hands. T en an ts are p u rch asin g from in s u r ance com panies and th is land is being financed on a long te rm basis. A n u m b er of farm s have been p u rchased by professional m en as an investm ent. Six m onths ago m ore land changed hands th a n a t present. A lgona — R. H. Miller, president, Iow a State Bank: Some farm land is m oving in th is locality w hich is being p u rch ased by local people. B usiness is good and we have been k ep t v ery busy. B oone —E. E. W iem er, cashier, Citi zens N ational Bank: D uring th e last y ear a considerable am o u n t of farm real estate has changed hands in this te rrito ry . Sales have slowed dow n in th e last 30 days, due to th e bid and asked spread betw een b u y er and sell er. Good im proved land is bringing from $135 to $145 per acre. V ery little of th is land has been purchased by outside investors. F ifty per cent of it has been p u rchased by farm ers and 50 p er cent by local business m en as an in vestm ent. T he insurance com panies have liquidated m ost of th e ir holdings around here and th ere will be a definite shortage of farm s for th e te n a n t farm er. Ogden —-H. L. Bass, ex-vice p resi dent, City State Bank: Good im proved farm land costs $150 p er acre. Good u nim proved land from $100 to $125 per acre. Sales have slowed dow n to a m inim um as ow ners an ticipate higher prices and to sell now w ould also have a bearing on th e ir incom e tax retu rn . Insu ran ce com panies have raised th e price of th e ir holdings from $15 to $25 p er acre. T here is no land available for th e te n a n t farm er aro u n d here. D allas Center— L. R. Bock, auditor, B renton S tate Bank: Some farm s have recently changed hands around here and for th e m ost p a rt have been p u r chased by local farm ers. The p resent price is around $125 p er acre. One farm here w as recently purchased by a Des M oines m an, w hich probably w ill be held for speculation. V ery lit tle land is now ow ned by insurance com panies in th is area. W in terset— H. L. Pauli, cashier, U n ion S tate Bank: Not m uch farm land changing hands around here and spec u lation is nil. Some te n a n ts have been p u rchasing from insurance com panies on a long term co n tract basis w ith a m inim um dow n paym ent. Greenfield —L. E. F oster, assistan t cashier, A dair County Bank: The price of farm real estate in our te rrito ry has n ot show n an y su b stan tial increase. Several farm s have changed hands and th ey are being purchased by te n a n t farm ers w ho have been operating th em or by an adjoining farm er w ho is adding to his holdings. The price varies from $50 to $100 per acre. T here is no speculation by outsiders. T enants have purchased, often due to concern of having farm sold from u n der them and no place to go. N ev in v ille — Jam es Kosar, cashier, N evinville Savings Bank: A few farm s have changed hands w hich are being purchased for th e m ost p a rt by ten ants. A farm or two has been p u r chased as an investm ent. U nder the auspices of th e Iow a B ankers A ssociation and th e extension service of Iow a S tate College, Iow a ban k ers have been atte n d in g fa rm ap p raisal and land use schools of in stru ctio n in various p a rts of the state. The p ictu re above was tak en a t one of th e schools. A t th e le ft of th e group, w ith th e augur in his hand, is P au l Burson, Iow a S tate College agronom ist; F ra n k W arner, secretary of the Iow a B ankers A ssociation, is in the center of th e group, in w hite sh irt and b lack tie. N orthw estern B anker N ovem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C reston —R. K. Meadows, cashier, Iow a S tate Bank: Several farm s w ere sold last sp rin g to N ebraska farm ers w ho p u rchased them from insurance com panies, usually w ith a sm all dow n pay m en t and on a long co ntract basis. The average price of farm land around 53 • here is $60 to $65 p er acre. ju s t fair th is year. Crops are Grand Ju nction —Claus Loof, p resi dent, Peoples T ru st & Savings Bank: A considerable am o u n t of farm land changed h an d s aro u n d h ere up u n til six w eeks ago an d th e m a rk e t has now flattened off. Good im proved land brin g s aro u n d $140 p er acre and good unim p ro v ed lan d aro u n d $110 p er acre. Mr. Loof doubts th a t th e re w ill be any radical increase in price for some tim e to come, if ever. He feels th a t th e reaso n for prices sky rocketing in th e early ’20’s w as due p rim a rily to loose cred it by b an k s and th a t th e b an k ers are too level-headed today to have th a t situ atio n hap p en again. P erry— C. S. Johnson, executive vice p resident, F irs t N ational Bank: W hile farm land has show n an increase of $15 to $25 p er acre in th is te rrito ry , we do not in ten d to raise o u r sights v ery high on ap p raisals w h en m aking a loan. A few farm s aro u n d here have been sold to outsid ers for speculation, or a hedge ag ain st inflation. The a v e r age price for unim p ro v ed lan d is $100 p er acre and good im proved land brin g s from $130 to $140 p er acre; 117 acres ju s t changed h an d s a t $122.50 p er acre and th is is n o t considered top grade land. A n o th er deal of 190 acres w as consum m ated th e o th er day a t $135 p e r acre and th is farm is fairly w ell im proved. W e have been able to get local te n a n t farm ers located so far b u t m an y inquiries are being received from outsid ers w ho w ill not be able to get located aro u n d here. M inburn —W. L. Crum ley, cashier, Dallas C ounty Savings Bank: Several farm s changed h an d s aro u n d h ere in th e last th re e or four m onths. The average price is $125 to $140 p er acre. A 240-acre farm th re e m iles out w as recen tly sold to a Chicago w om an a t $140 p er acre as an investm en t. A local fa rm e r pu rch ased 190 acres a t $125 p er acre a fte r selling his 80 acres a t the sam e figure. T h ere is an acute shortage of farm s for te n a n t farm ers in th is county an d Mr. C rum ley esti m ated ap p ro x im ately 60 te n a n t farm ers w ould have to leave th e county to get located. Osceola —R. K. McGee, vice p resi dent, C lark C ounty S tate Bank: Quite a n u m b er of farm s are changing h ands a ro u n d here. M ost of th e farm s are being p u rch ased by te n a n ts w ho have acq u ired som e livestock an d are able to m ake enough of a dow n p ay m en t to hold th e farm s. A few of th e farm s have been pu rch ased by farm ers from N ebraska. T here is v ery little evi I OWA NE WS • dence of speculation on land, as yet, in our section. Glidden —H. W. P o rter, president, F irs t N ational Bank: Several farm s have changed hands around here in th e last year. Good im proved land brings u p w ard of $125 per acre. Good unim proved land is selling from $90 to $120 per acre. No outside investors are com ing into th is te rrito ry to speak of. In M ay a Des M oines m an p u r chased 320 acres n ear here at $90 per acre. T his is fair land b u t no build ings. An 80 acre farm , close to tow n, w as ju s t sold at $130 per acre. A n o th er 80 changed hands a few w eeks ago at $115 per acre. T his p ro p erty w as w ell im proved and good land. Carroll—C. J. Hess, cashier, C arroll County State Bank: T here has been m ore activ ity in farm real estate of late th a n for several y ears an d prices have increased $15 to $25 p er acre. A good im proved 160 acres w as sold th e o th er day a t $150 per acre. A nother sale of 187 acres w as com pleted a t $130 per acre and th e im provem ents w ere not good. In th e last few m onths our The Key to Sioux City A First National Bank account is your key to the prompt, efficient collection of your checks and drafts in Sioux City. Our employes know how to put through your collections with the maximum speed and ac curacy. Our officers are experienced in the art of personal help on your individual prob lems. Let First National Bank service take care of your Sioux City needs. A. G. Sam, President J. P. H ainer, Vice P resident J. R. Graning, Assistant Cashier Fritz Fritzson, Vice Pres, and Cashier E. A. Johnson, Assistant Cashier J. T. Grant, Assistant Cashier W. F. Cook, A uditor M EM 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 PO R A TIO N IN S IO U X C IT Y N orthw estern B anker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 54 • segregated tr u s t fu n d has sold th re e farm s from $100 to $125 p e r acre. M any farm ers have w ith d ra w n from th e m ark et, an ticip atin g b e tte r prices. In su ran ce com panies ow n v ery little land in th is county. T h ere is no land available for th e te n a n t an d several te n a n ts have been forced to quit, as th e ir farm w as sold from u n d e r them . A uburn —H. C. B runs, vice p re si dent, A u b u rn Savings Bank: T here w as m ore activ ity in th e sale of farm land last sp rin g th a n a t p resent. T here is no land being sold to o utsiders here. The b est price is aro u n d $125 p er acre NEWS t e f S ¿ .c W & r 4 c i o t 4 for $115 w hich had good buildings. Two Des Moines m en p urchased 1,400 acres in this area a year ago b u t there is v ery little speculation. Prices have increased from $10 to $15 per acre and in surance com panies still own a con siderable am ount of land in th is te rri tory.— T H E EN D . Joint Meeting of Bank Examiners On N ovem ber 10th, in Des Moines, th ere w ill be held a jo in t m eeting of the FD IC and Iow a exam iners. In v itatio n s have been issued by C. L. P itm an and F. A. Lettow , supervis ing exam iner and a ssistan t su p ervis ing exam iner of th e FDIC, respective ly, and M elvin W. Ellis, su p erin ten d ent, and R alph L. Bunce, deputy su perin ten d en t, of th e Iow a D epartm ent of B anking, to th e 36 m en engaged in th e exam ination of Iowa State C har tered banks on behalf of th e FDIC, te r# a te r r t í o r • and unim proved land w ill brin g from $60 to $100. P ractically no land is ow ned by in surance com panies in th is area. E sth erv ille—-W. C. C urrell, p resi dent, E m m et County S tate Bank; T here has been some activity in the sale of farm s in th is area and for th e larg er p a rt th e sales have been m ade by in surance com panies on long term co n tracts w ith a m inim um dow n pay m ent. Im proved land is selling from $85 to $100 p er acre. A recen t sale of 400 acres w as consum m ated a t $87.50 and $90 p er acre. A nother q u a rte r sold c 4 IOW A t h .e a S c ,o n d * n ts c o ïïeSl? ~ '.,, coiW?¡Vete / c 4 to o “ d . A fcf c 4 X- 4 O tt* U « ct " 11 V>« th e ? c 4 M E L V IN w. E L L IS V o '- 'v 4 c NATIONAL BANK OF WATERLOO THE Member—Federal Deposit Insurance Corporation Member—Federal Reserve System F ederal R eserve B ank of Chicago, and the Iow a State B anking D epartm ent to a tten d an all day m eeting in Des Moines on N ovem ber 10, 1941. A program of th e sessions to be held in th e G reen Room of th e F t. Des M oines H otel and of th e dinner a t th e Des Moines Club follow ing the business session is as follows: 10:00 a. m. G reen Room, M e z z a n in e Floor, Ft. Des Moines H o tel — an ho u r devoted to YOUR STATE BANKERS A SSO C IA TIO N O FFICIA L SAFE, V A U LT A N D TIM ELOCK EXPERTS F. E. D A V E N P O R T & C O . OM AHA N orthw estern B anker N ovem ber 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 • IOW A g ettin g to know all th e o th er fellows. 11:00 a. m. to Noon—D iscussion of su b jects of m u tu al in te re st in an every-day a tte m p t to in tellig en tly appraise banks. B rin g along y o u r “pet p e e v e .” W e’ll k i c k i t aro u n d and see if we can crack it. 12:15 p. m. P riv a te d ining room a t n o rth end of ballroom — sam e floor—Luncheon. 2:30 p. m. B ack in th e G reen Room for fu rth e r consideration of “pet peeves”—w e m ay not hav e finished. 5:00 p. m. Crow ’s N est—F ifth Floor, Des M oines Club—R elaxa tion. 6:30 p. m. B anquet Room — F ifth Floor, Des M oines Club— In fo rm al d in n er w ith all th e trim m ings. In asm u ch as th e objectives of th e tw o groups of exam iners are identical, it is an ticip ated a b e tte r acquaintance am ong th em w ill be beneficial and th a t m an y helpful ideas of cooperation w ill re su lt from th e m eeting. Increased Check Transactions Check tra n sa c tio n s th ro u g h Des M oines b an k s to taled $951,866,000 for th e first nin e m o n th s of 1941—only $48,134,000 sh o rt of th e billion dollar m ark. I t w as a gain of $88,822,000 over th e 1940 figure for th e like period. S eptem ber reg istered a to tal of $110,313,000 to becom e th e sev en th m o n th to pass th e $100,000,000 m ark. It show ed a $14,622,000 increase over check p ay m en ts for Septem ber a y e a r ago. As check tran sactio n s are only a n o th er nam e for debits to individual b an k accounts, th e y give an accu rate m easure of th e “velocity” or m oney in th e com m unity, an d are considered one of th e b est b aro m eters of business activity. B an k ers said large co n stru ctio n p ay rolls a t th e Des M oines ordnance plant, coupled w ith a record b reak in g hom e b uilding pro g ram and a n u m b er Banks Sold or Bought! quietly, quickly and in a personal manner JAY A. WELCH Haddam, Kansas “35 years P ractical Banking E x p e rien ce ” NEWS • of m ajor in d u strial projects here u n doubtedly have helped m aterially to produce th e heavy gains in check tran sactio n s w hich have continued over th e last seven m onths. Given À. B. A. Post R. O. B yerrum , executive vice p resi d e n t of th e F irs t T ru st & Savings B ank of D avenport, w as nam ed Iowa vice p resid en t of th e A m erican B ank ers A ssociation a t th e an n u al conven tio n in Chicago recently. Mr. B y errum w as appointed to th a t post by H en ry W. K oehnke, Ponca City, Oklahoma, w ho is th e new p resi d en t of th e A. B. A. T he state vice presid en t presides at m eetings of m em bers for his state and is responsi ble for m em bership and organization m atters in his jurisdiction. Harlan Banker Dies Jo h n J. N orgaard, executive vice presid en t of th e H arlan N ational B ank of H arlan, died a t his hom e recently from a h e a rt attack suffered 10 days prior. This Year Visit the “ International” America’ s Greatest Live Stock Exposition NOVEMBER 29th to DECEMBER 6th, at CHICAGO The Drovers National Bank joins the management of the "International" in cordially inviting you to visit this advance showing of "styles" in live stock. As a banker, with important interests in the live stock field, you will soon find these 1941 "styles" translated into practical values in farm herds of your community. DROVERS NATIONAL BANN DROVERS TRUST & SAVINGS BANN UNI ON STOCK YARDS, CHICAGO- M E M B E R S , 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 N orthw estern Banker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 56 • IOW A NEWS • DEFENSE BOND ADVERTISING on in tern atio n al affairs, gave an in ter esting in te rp re ta tio n of th e in tern a tional situation. Also H orace Russell, counsel, U nited States Savings and Loan League, spoke on provisions of th e W age and H our Law. A t th e closing session of the League, th e follow ing officers w ere elected for th e ensuing year: M. J. L anning of N ew ton, president; L. J. M aresh of Cedar Rapids, first vice president; Jo h n C. Shenk of D avenport, second vice president. E. M. K lapka of F o rt Dodge w as re-elected secretary-treas u rer. The new executive com m ittee w ill include: F ra n k G. N ebiker of B ur lington, H u b ert E. Jam es of Des M oines and C harles R. L aB arre of Algona. Prominent Man Dies P ictu red above is one of the highw ay signs sponsored by th e F irst N atio n al B ank of Oelwein, Iow a, to prom ote the sale of D efense Bonds. The p ictu re w as obtained through the courtesy of M. C. H anson, cashier of the bank. League Holds Convention M em bers of th e Iow a B uilding and Loan L eague held th e ir 50th annual convention last m o n th in Des Moines w ith an atten d an ce of m ore th a n 200. The m eeting w as a two-day m eeting, and in addition to addresses by sev eral of th e m em bers of th e League, th ere w ere speeches by a n u m b er of speakers from out of tow n, including F ra n k H ardinge, Jr., se cretary of th e Society of R esidential A ppraisers, Chi cago; P au l E ndicott, president, U nited States Savings and Loan League, Po m ona, California, and Dr. M elchior Palyi, form erly w ith th e G erm an R eichsbank and now associated w ith th e U n iversity of W isconsin. A m ong th e local speakers w as Clif ford De Puy, p u b lisher of th e N orth western B anker, w ho m ade an ad dress on the subject “Are W e K illing th e Goose T h at Lays the Golden E gg?” Dr. Payli, w ho is one of th e o ut stan d ing speakers in th e U nited States We Take Pleasure in announcing M R . H O R A C E A . S M IT H as IOWA REPRESENTATIVE with offices in the Valley National Bank Building Des Moines Insurance Counselors to Banks Chicago N orthw estern B anker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C. B. Sm eltzer, pro m in en t F t. Dodge resident, died v ery suddenly at the L u th e ra n H ospital in th a t city last m onth. H e had had no previous w arn in g of illness. Mr. Sm eltzer w as for m any y ears in th e b an king business. He w as presi den t of th e form er Iow a Savings B ank of Ft. Dodge, and a t th e tim e of his death w as d irector of th e S tate Bank, Ft. Dodge, and banks in Renwick, Pocahontas, Clarion, Rockwell City and A drian, M innesota. Form Study Group F ifteen b an k em ployes from G rin n ed and neighboring tow ns held a d in n er m eeting recen tly at th e Monroe H otel for th e purpose of organizing a study group, w hich w ill hold w eekly m eetings for th e n ex t eight m onths u n d er th e sponsorship of th e A m eri can In stitu te of B anking. H ugh McCleery of L aurel conducted th e in au g u ral m eeting. Those p resen t agreed upon T uesday as th e ir reg u lar m eeting n ig h t and th ey will hold th eir classes in th e lobby of th e G rinnell State Bank. The stu d y group w ill be in stru cted by J. W. Charlton, associate professor of economics at G rinned College. The study topic w ill be b ank a d m in istra tion. Am ong those w ho atten d ed th e din n er m eeting w ere: P auline Ryan, Louise M ow itt and L. M. L aning of the G rinned S tate Bank; Donald Mc Dowell of th e P ow eshiek County N a tional B ank of G rinned; C. C. Ecklund of Brooklyn; M. L. H ickm an, O. L. K arsten, A. E. P eters, G. M. K ruse, L. H. Macy and M ary Louise M owitt of N ewton; Jam es A nderson of K el logg, an d Mr McCleery. 57 H um boldt are 50c per m onth to all custom ers, plus 2c on every check draw n on th e account. IO W A N EW S FROM HERE AND THERE By J. A. Sarazen, Associate Editor J. A. S A R A Z E N T H E R u th v en S tate B ank, w hich A sub stan tial am ount of th is paper is opened for business Ju ly 5, h ad de carried at all tim e w hich he said has posits of n early $200,000 on Octoberproven rfiost satisfactory. Service charges on checking accounts here a t 15th. V isiting V. TV. M iller, vice president, Jefferson State Bank, Jefferson, w ho has re tu rn e d to his desk afte r an ex tended illness, we w ere inform ed th a t his b ank plans to do some extensive rem odeling of th e in terio r of the building. New low type counters w ill be installed, an addition w ill be added to th e re a r of the building increas ing floor space considerable. A new safe deposit vau lt will be b u ilt and a new heatin g p lan t and air condition ing w ill be installed. The booking d ep artm en t w ill be m oved dow n stairs D eposits a t The State Bank, F ort w ere $3,500,000 on October 13th, an all tim e high for th is bank. L oans and discounts w ere over $2,000,000. Dodge, A rnold B oehm , cashier, B ank, Ogden, inform s us in his b an k have show n a increase of late and are $200,000. A g re a t deal of cattle paper. City State th a t loans su b stan tial up n early th is being S tatem en t of th e B oone State Bank show s g ro w th in deposits th ro u g h th e various y ears from A pril 19, 1933 to the c u rre n t statem en t. On th e above date deposits w ere b u t $170,000 and on Septem ber 24, 1941, deposits totaled $2,850,000. Bills receivable am o u n t to $1,951,000 and th e capital stru c tu re has k ep t pace w ith th e increase in deposits as it now stands at $237,000. It is in te re stin g to note th e capital stru c tu re of th e H um boldt T rust & S avin gs Bank. C apital (com m on) is $50,000, su rp lu s $50,000, reserv es $50,000 and undivided profits $53,900. De posits am o u n t to $1,415,000. A t th e F irs t N ational B ank, H u m boldt, cashier B. B. W atson told us his b an k w as enjoying a good volum e of business and earn in g s w ere satisfac tory. The b an k prem ises has been charged off and stockholders have been receiving a nice dividend since 1936. It is g ratify in g to note th e in crease in th e reserv es of th is b ank b u ilt up from earn in g s since 1933 w hen th e old F irs t N ational B ank w as p u t into liquidation and th e new b ank started. Capital a t th a t tim e w as $50,000 and reserv es b u t $10,000. Today capital is $50,000, su rp lu s $100,000 and reserv es of over $38,000. (The old b an k w as m oved to th e back room and paid depositors in full). A splendid source of incom e says Mr. W atson, is th e farm im plem ent dealer pap er w hich is cleared th ro u g h his bank. NEW MARKETS-NEW METHODS VER the face o f the country in the past few months has come an enorm ous change — a change w hich is reflected in the business activity o f every citizen. N e w markets, new m ethods, new concepts o f business are required; and in each o f these respects c r e d it plays an im portant role. In the Chicago area, the American N ational Bank and Trust Company is actively engaged in correlating credit requirements w ith these changing conditions o f business. Such services have brought this institution into close contact w ith many typical in dustrial problem s o f today. It is for this reason that the American N a tio n a l is able to offer exceptional correspondent banking services to b u sin e ss-m in d e d banks in other parts o f the country. O AM ERICAN NATIONAL BANK AND TRUST COM PANY OF C H IC A G O LA S A L L E S T R E E T J 1 AT W A S H I N G T O N Member Federal Deposit "ggl H jÉ E Insurance Corporation " •w > O U R B U S I N E S S IS TO H E L P B U S I N E S S N orthw estern B anker N ovem ber 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 • and m any o th er im provem ents w ill soon get u n d e r w ay. W e also learned th a t it w as ju s t lately th a t Mr. M iller w as m oved up from cashier to vice presid en t and fo rm er a ssista n t cash ier, Ralph M aloney, w as m ade cashier. E. E. W iem er, cashier, Citizens N a tion al B ank, Boone, w as p ro u d to in form us th a t his b an k has sold th re e tim es as m an y D efense Bonds as any o ther b an k in th e co u n try of like size. E. B. M cln tire, cashier, K ent State Savings B ank, is celebrating his 25th year w ith th is b an k th is year. F o r a IOWA NEWS . young m an “Me” has seen a lot of b an k ing business. T he P e rry A. I. B. study group got off to a good s ta rt th is y ear and w ith an increase in m em bership of from 34 stu d en ts last y ear to 48 th is year. L loyd Bock, B renton S tate Bank, D allas Center, is th e presid en t and D orothy H elm ick , from th e sam e bank, is th e secretary and treasu rer. T he board of governors is composed of Gerald Clause, M ilton B arnett, B er gen R aynor and H ugo N orgren. Chas. Joy, form er county atto rn ey , is the in stru c to r th is year. H I G H L I G H T OF C H I C A G O ’S H I S T O R Y — landing o f Pere Marquette a t Chicago in 1674. In the field o f finance, too, Chicago has her historical highlights. Prominent Celebrates 83rd Birthday Mr. H en ry G uenther, W h eatlan d ’s v eteran banker, w ith a record of over fifty-eight y ears of continuous service, celebrated his 83rd b irth d ay an n iv er sary recen tly a t the hom e of his daughter, Mrs. C. A. B aum gart in Des Moines. Mr. G uenther enjoys good h ealth and atten d s to his banking duties daily. Conclude Vacation Mr. and Mrs. F red W elch, Mapleton, recently re tu rn e d from a m o n th ’s vacation to u r of th e eastern states. Mr. W elch is th e presid en t of th e F irs t S tate B ank in M apleton, having served th a t in stitu tio n actively for over th irty years. To Represent Mississippi Valley Trust Co. A nnouncem ent has ju st been made by M ississippi Valley T ru st Company of th e election as assistan t secretary of M. C. Hook Jr. Mr. Hook w ill cover th e te rrito ry in M issouri, Iow a and N ebraska as a rep resen tativ e of Mis sissippi V alley T ru st Company. He HERE CORRESPONDENTS GAIN FACILITIES OF VALUE TO THEMSELVES AND THEIR CUSTOMERS Upon establishing a connection with The Northern Trust Company, the out-of-town-bank makes immediately available to itself the full facilities of this institution. These include the efficient handling of routine transac tions, and also a variety of special serv ices. Our correspondents profit from our many years of sound banking ex perience. They welcome access to in- formation, which is the result of up-tothe-minute fact finding. And they en joy, too, the opportunities to consult with our friendly, informed personnel on all banking and trust matters. By utilizing these sources of information, each correspondent of The Northern Trust Company broadens and rein forces the scope of his bank’s service to his customers and his community. T H E N O R T H E R N T R U ST COM PANY 50 SOUTH LA SALLE STREET, CHICAGO ★ M ember Federal Deposit Insurance Corporation N orthw estern B anker N ovem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M . C. H O O K , JR . w as form erly in th e bond dep artm en t of M ercantile-Com m erce B ank and T ru st Company. Mr. Hook is a g rad u ate of B radley P olytechnic In stitu te a t Peoria, Illi nois, w here he received a B achelor of Science degree in B usiness A dm inis tra tio n in 1930. He is m arried, has one child, and resides in U n iversity City. 59 Helping Boys to Raise Better Cattle By RAYMOND J. MEYER Cashier of the Boone State Bank and Trust Company, Boone, Iowa / / \ y / E w en t out in th e N ebraska V v Sand H ills an d p u rch ased 150 of th e b est calves obtainable and sold th e calves a t tw o auctions. The first auctio n w as held S aturday, O ctober 4, and th e n e x t auction w a sheld October 25. W e have b o u g h t th ese cattle and are p ro ra tin g back to th e b u y ers any m oney over and above th e actual cost of th e cattle. C om m ents th a t we have h e a rd from th e first fifty we secured is th a t th e y are some of th e best cattle th a t w ere ever b ro u g h t into Boone county. “W e had a d in n e r an d a to u r w ith th e ra n c h e rs from w hom w e bought th e calves, and th e 4-H boys w ere guests. T he ra n c h e rs v isited each boy and saw w h a t th e calves looked like a t th a t tim e and p erh ap s got some ideas of th e ir ow n as to b e tte rin g th e ir ow n stock. “W e also w ill give a w eek ’s free trip on a w e ste rn ra n c h to th e tw o boys w ho show th e b est calves from the ones purchased. “F ro m com m ents h e a rd I believe w e are p u ttin g on a v ery successful ad v ertisin g schem e, but, m ore im p o rta n t, it is actu ally helping o u t th e co m m unity and I believe th a t is th e purpose of b an k s.” som e p articu lar departm ent, or occa sionally a t his suggestion, an au d it is conducted. It is desirable for us to conduct these audits before th e 20th of each m onth. If such has been im possible, th e au d it is conducted on overtim e. The ro u tin e of checking each m onth is also varied. P erh ap s one m onth it w ill be th e Loan de p a rtm e n t first, a n o th er m onth th e the F I R S T Savings departm ent, w ith no set p ro cedure to follow; th ereb y keeping all d eparm ents on th e ir toes as to the date th e ir d ep artm en t and w ork w ill be checked. The follow ing exam ple w ill perhaps p o rtra y w h a t can hap pen in th e pro cedure of su rp rise audits. One of our em ployes had reconciled our corre spondent b ank balances tw o m onths consecutively; th e m ail clerk au to m at ically handed him th e m onthly sta te m ents for reconcilem ents th e th ird m onth. He had half com pleted the reconcilem ents a t th e tim e th is came to m y atten tio n . T his em ploye w as requested to tu rn over th e statem en ts W IS C O N S IN is First in Wisconsin The F ir s t W is c o n Am ple resources. Complete m od sin serv es m o re th a n 85 p e r c en t o f a ll ern facilities. U nparalleled state t h e b a n k s in W is OUR AUDITING SYSTEM wide contacts. A large and com petent stalf c o n s in .. .p lu s m a n y (C ontinued from page 16) headed by experienced officers. An 88-year Com m ercial paper, W arrants and cer tificates, B u dget loans, C ollateral file records, actu al collateral, In surance records on all m ortgage loans, re v ie w in g tlieir m atu rity to be sure all loans are am ply protected, Safety deposit b ox rentals, and W age and hour rec ords. Do not n eg lect proper audit and control of th e D orm ant accounts. record of growth and progress. . . . With I have n o t m entioned th e featu re of au d itin g incom e and expense. W e have not developed th is p a rt of our au d it p ro g ram adequately b u t hope to develop a system of checking incom e and expenses. H ow ever, we hold fast to th e p ractice of paying all expenses by check, w ith no d isbursem ents; sal a ry or postage, large item or sm all item , being paid in cash. It is definitely our in ten tio n an d ou r pro g ram th a t no one shall check for correctn ess in his d e p a rtm e n t and th e re is no definite p ro g ram for th e date of au d itin g any d ep artm en t. W hen it ap p ears to be a day w hen b u siness is not too ru sh in g , w e ask o u r au d ito r to conduct th e au d it of T h e F irst W isconsin is the largest hank in W isconsin, Iow a, M innesota, N o rth and S o u th D akota . . . 31st in size am ong all hanks in the U nited States. leadin g in banks key cities o f these important factors providing a sound n e ig h b o r in g sta tes. • foundation for efficient service, the First R e so u rce s O v e r $285,000,000 W isconsin National of M ilwaukee holds outstanding rank as “W isconsin’s hank for e E s ta b lis h e d 1853 banks” . F I IS S T W I S C O N S I N NATIONAL BANK OF MILWAUKEE BANKS & BANKERS BIVISION George T. Campbell V ic e - P r e s id e n t Richard J. Lawless A s s ’t V ice -P resid e n t Donald A. Harper te n t M EM BER FED ER A L D E P O S IT IN S U R A N C E C O R PO R A T IO N N orthw estern Banker N ovem ber 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 60 —• for reconcilem ent to an o th e r em ploye. He w as ra th e r offended w hen asked to s u rre n d e r th e p a rtia lly com pleted w o rk and a p p a re n tly felt he m ight be considered disloyal or dis honest in some respect. H ow ever, w hen it w as explained to him th a t one im p o rta n t featu re of any p ro p er form of au d itin g or exam ination, w as th e su rp rise angle and th a t th e m anaging officers’ d ep artm en t w as being audited w ith th e sam e carefulness, th is feeling of re se n tm e n t on his p a rt w as soon forgotten. The re su lt of th e su rp rise au d it on the p a rt of a fellow em ploye in our bank, has placed our em ployes m ore on th e ir alert. Likew ise, it acts as an encouragem ent for th e m anagem ent to handle th e ir sh are of th e b anking business on a b e tte r basis. It should induct into an individual th e desire for b ette r records. E ach m orning th e re is placed on m y desk a ty p e w ritte n sh eet w hich p e r form s a featu re of auditing. It has a space for each of our cages. T ellers are in stru cted to have cash only in th e ir possession a t night. One em ploye is designated to handle cash item s. The item s are listed on th is m aster cage sheet in detail. If it ap p ears an y item is doubtful, an d if in th e reg u lar course of business it is not elim inated, the item is given special a tte n tio n by the cashier. Also on th is sh eet is in d i cated th e am o u n t of exchange, n o tary and oher fees collected daily th ro u g h each cage, th e re b y giving com plete records according to cages, show ing those best follow ing instru ctio n s. IOWA NEWS •- Our cash item sheet has been m ost appreciably received on th e p a rt of the banking departm ent. T hey review th em du rin g exam ination. T hey have w orked satisfactorily as a check on the cages, and th e fact th a t all exchange and m iscellaneous collection fees are recorded, gets aw ay from p etty cash being handled by all individuals in the bank. P e tty cash boxes have alw ays proved to be a nuisance, a tem p tatio n and w ith no justification in th e opera tion of a b ank as th ey provide no record of th e m oney spent. Our audits show th e following c rit icism s m ost frequently: F ailu re to file receipts for item s tak en from files, and illegible w riting, poor filing and u n com pleted corrections. T hese cost a b an k m uch m oney and loss of time. In reg ard to fu rth e r am bitions along th e line of auditing, although our em ployes are g radually g etting ac quain ted w ith the different d ep art m ents th ro u g h assisting in auditing, th is is still inadequate. If sufficient know ledge of o ther duties w ere ob tain ed th ro u g h exchange auditing, it w ould be easy to shift one em ploye to an o th e r d ep artm en t in su rp rise moves. T his w ould involve th e function of an au d it and necessitate a checking out and a checking in of a departm ent. P erh ap s th is type of an au d it can now be used in m any banks. To me, it app ears to hold fo rth m any possibili ties and m ay discover th e best place for each employe. A no ther of m y am bitions is th e h ir ing of an independent firm of Certified Public A ccountants. A firm w hich is Federal Home Loan Bank of Des Moines Des Moines, Iowa STATEMENT OF CONDITION NOVEMBER 1, 1941 R ESO U R C ES A dvances to M em b ers...................................................................................................................... §15,899,495.00 U . S. G overnm ent O b lig atio n s and S ecu rities fu lly g u a ra n te e d by U . S................. 3,324,980.75 A ccrued In te re s t R eceiv ab le........................................................................................................ 48,938.28 D eferred C h a r g e s .............................................................................................................................. 10,994.83 O th e r A ssets ....................................................................................................................................... 300.00 Cash ...................................................................................................................................................... 4,393,026.86 fam iliar w ith banking and its pro cedures, to g eth er w ith m anagem ent engineering. T hey to conduct a su r prise audit once a year and not to be crow ded for tim e as are the exam iners of the banking departm ents. This audit could be m ost beneficial and teach each individual th e easiar and b etter w ay of doing th e ir w o rk and th e m ore diplom atic w ay of handling his p a r ticu lar p a rt of th e banking business. I used th is type of au d it to facilitate th e v o lu n tary liquidation of a bank. The assets w ere audited and the books set up by a C. P. A.; a su rp rise audit w as conducted relativ e to th e volun ta ry liquidation once each year. The au d it w as m ore com plete th a n the audit of a B anking D epartm ent. It covered income, disbursem ents, assets checked back to th e ir e n try into the tru st; endorsem ents, te st com putations as to in terest, etc., to g eth er w ith sug gestions to the m anagem ent as to how to p roperly handle all records. It w as detailed, w ith a copy of th e audit to each tru stee. T his tru s t paid 100% several y ears ago; th e depositors will receive 2% in terest; th ere w ill be a su b stan tial am ount of re tu rn to the stockholders and no stock assessm ent w as collected. E x am in ers expected a 75% to 85% pay out. P ro p er account ing and m anagem ent gave excellent results. I believe th is service, a C. P. A. m anagem ent audit, could be m ost sat isfactorily used to su p p lan t one ex am ination of th e Board of D irectors. It could prove m any of th e em ployes doing a b e tte r job in a m ore diplom atic w ay th a n th e m anagem ent appreci ates and p erhaps such su rv ey w ould give to th e m anagem ent m any ideas for efficiency. A uditing should be a cardinal func tion in the operation of any bank. It should be forem ost in th e m ind of any b ank officer or m em ber of th e Board of D irectors. W e spend m uch m oney for conventions, ad v ertisin g and w hat not. A few dollars m ore w isely spent along th e line of constructive exam ination of accounts could save us w o rry and pay larg er dividends.— T H E EN D . $23,677,735.72 L IA B IL IT IE S AND C A PIT A L C ap ital Stock S u b s c rip tio n s ..................................................................... *D ebentures O u ts ta n d i n g ............................................................................ P rem iu m s on D e b e n tu re s.......................................................................... D eposits—M em bers a n d A p p lic a n ts ...................................................... A ccrued In te re s t P a y a b le .......................................................................... S urplus : R ese rv e s................................................ . ............................................................. $624,554.68 U ndivided P r o fits ............................................................................................... 267,914.30 $10,362,400.00 11,500,000.00 9,584.03 902,260.35 11,022.36 892,468.98 $23,677,735.72 P a rtic ip a tio n in $75,500,000.00 consolidated Fed eral Home Loan B ank debentures o u tsta n d in g , w hich a re th e jo in t and sev eral obligations of the tw elve F ederal Home L oan B anks. N orthw estern B anker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Executive Committee Announced Rulon F. Starley, presid en t of the N ational A ssociation of S upervisors of State B anks and B ank C om m issioner of U tah, announced yesterd ay th a t he had appointed th e following executive com m ittee of th e association: Joseph E. P erry, com m issioner of b a n k s , M assachusetts; W illiam R. W hite, su p erin ten d en t of banks, New 61 • York; Jo h n C. Bell, Jr., se cretary of banking, P ennsylvania; R odney P. Lien, su p e rin te n d e n t of banks, Ohio; Jo h n D. H ospelborn, dep u ty b an k com m issioner, M aryland; W ilfred J. Begnaud, b an k com m issioner, L ouisiana; M elvin W. Ellis, su p e rin te n d e n t of banking, Iowa; H om er B. Clarke, su p e rin te n d e n t of banks, Tennessee; F. A. A m undson, com m issioner of banks, M innesota; M aple T. H arl, b an k com m issioner, Colorado; Linw ood O. Neal, b an k com m issioner, Oklahom a; R ulon F. Starley, b an k com m issioner, U tah (ex officio). T he m ajo rity of th e new com m itee re p re se n t reapp o in tm en ts. T he new appointees are W ilfred J. B egnaud of L ouisiana and M elvin W. E llis of Iowa. The executive com m ittee, w hich consists of one b an k com m issioner from each of th e tw elve F ed eral R e serv e D istricts, is th e policy-m aking body w hich, in co njunction w ith the officers, conducts th e business of th e association d u rin g th e period betw een a n n u al conventions. Koeneke Announces A. B. A. Committee Members New m em bers of th e vario u s com m ittees, com m issions and councils of th e A m erican B ankers Association, w ho have been appointed to serve d u r ing th e association y ear 1941-42, have been announced by H en ry W. Koe neke, A. B. A. president. The new appointees and th e com m it tees, com m issions and councils to w hich th ey have been nam ed are: I O W A N E W S • tional B ank of Tulsa, Tulsa, Okla homa; C. F ran cis Cocke, president, F irs t N ational E xchange Bank, R oan oke, V irginia; A. George Gilman, p resi dent, M alden Savings Bank, Malden, M assachusetts; T. S. H arkison, vice president, N ational B ank of South Da kota, Sioux Falls, South Dakota; J. S h errard K ennedy, vice president, F irs t N ational Bank, A tlanta, Georgia; W illiam C. Tom pkins, auditor, F irst N ational Bank, St. Louis, M issouri; L ang W harton, executive vice presi dent, F irst N ational Bank, Dallas, Texas; F ra n k King, com ptroller, Con tin en tal Illinois N ational B ank and T ru st Company, Chicago, Illinois. E x e c u tiv e C om m ittee H om er J. L ivingston, attorney, F irst N ational Bank, Chicago, Illinois. S u b c o m m itte e on B a n k ru p tcy M ERCHANTS H om er J. L ivingston, attorney, F irst N ational Bank, Chicago, Illinois, chair- MUTUAL BONDING COMPANY THE P ublic Incorporated 1933 H om e Office V A L L E Y B A N K B U IL D IN G Des Moines, Iowa • * Na t io n a l B ank AND TRUST COMPANY OF NEW YORK 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. F ed eral L egislation T hom as Bow ron, vice president, F irs t N ational B ank, B irm ingham , Ala bam a; A. E. B radshaw , president, N a » - ' . ' h- S e r v i c e — M aintaining an intimate, personalized corre spondent bank service. • W rite to E. H. WARNER E x p e r ie n c e —Officials with years of service in this field, assuring a knowledge of re quirements and valuable as sistance. S e c re ta ry a nd M an ag er P o lic y — To cooperate with T h e re S m ove to a satisfactory correspondent banking relationship than the performance of the gen erally accepted functions o f a correspondent — i.e., handling transit checks and collections. out-of-town hanks rather than compete for business which is rightfully theirs. The ability and the desire to “go out of the w ay” to handle unusual situations and transactions are important, too. N A T IO N A L B A N K OF D E T R O IT Complete Banking and Trust Service DETROIT, MICHIGAN ESTABLISHED 1908 MEMBER O' NEW YORK CLEARING BOLSE ASSOCIATION FEDERAL DEPOSIT INSURANCE CORPORATION : •. : ’ ' * •' . • d V • • N orthw estern Banker Novem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 62 F R S I E E N R D V H. L Y I C E ^ Come to the Bismarck for luxurious comfort . . . good food . . . and that e lu siv e some thing called “friendly service” that makes you feel right at home. Every modern hotel convenience is here at your beck and call . . . and the location is a t i m e - s a v i n g convenience. Write for booklet with map of downtown Chicago OTTO K. EITEL, MNG. DIR. CO Os AND Cs *1 O* FOR BANKS Write for Free Estimates ij'iu c n u AND C O M PA N Y DES M O IN ES N orthw estern B anker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m an; J. S h errard K ennedy, vice p resi dent, F irs t N ational Bank, A tlanta, Georgia. Subcommittee on Section 5219 U. S. R evised Statutes T hom as W. Bowers, vice president, B ank of th e M an h attan Company, N ew York, N. Y.; W illiam C. Tom p kins, auditor, F irs t N ational Bank, St. Louis, M issouri. Subcom m ittee on Taxation C. F ran cis Cocke, president, F irs t N ational E xchange Bank, Roanoke, V irginia; F ra n k King, com ptroller, C ontinental Illinois N ational B ank and T ru st Co., Chicago, Illinois. HOM E W Federal Savings AND LOAN ASSOCIATION OF DES MOINES — onr Federally Insured up to $5,000 savings accounts are the solution to your invest ment and trust problems. Current dividend 3 bâ percent. Statem ent on request. 414 Sixth Avenue Des Moines, Iowa F ederal L eg isla tiv e Council State C hairm en —California: A. R. Thom as, executive vice president, F irst T ru st and Savings Bank, Pasadena; D istrict of Columbia: C harles H. Doing, first vice president, W ashington Loan and T ru st Co., W ashington, Georgia; J. S h e rrard K ennedy, vice president, F irs t N ational Bank, A tlanta; Iowa: J. J. M iller, cashier, W aterloo Savings Bank, W aterloo; Louisiana: M. L. F u n d erb u rk, president, Citizens B ank and T ru st Co., Houm a; M assachusetts: George A very W hite, president, W or cester County T ru st Co., W orcester; M ichigan: S tephen A. G raham , vice ch airm an of board, M ichigan N ational Bank, P o rt H uron; M ississippi: G. M. M cW illiams, executive vice president, Citizens Bank, H attiesburg; N orth C arolina; F ra n k P. Spruill, president, Peoples B ank and T ru st Co., Rocky M ount; N orth Dakota: M artin Aas, vice president, F irs t S tate Bank, New Rockford; Ohio: P hilip R. Peters, cash ier, Fairfield N ational Bank, L ancaster; Oklahoma: E. C. Love, president, F irs t N ational Bank, Chandler; Oregon: C harles H. S tew art, president, P o rt land T ru st and Savings Bank, P o rt land; South Carolina: B. M. E dw ards, president, South C arolina N ational Bank, Columbia; Texas: W alter P. N apier, president, Alamo N ational B ank, San Antonio; U tah: C harles L. Sm ith, president, F irs t N ational Bank, Salt L ake City; V erm ont: H. A. Dahlgren, cashier, K illington N ational B ank, R utland; V irginia: C. S. C arter, president, D om inion N ational Bank, Bristol; W ashington: B enjam in N. Phillips, president, F irs t N ational B ank, P o rt Angeles; W est V irginia; H ayes Picklesim er, executive vice p resident, K anaw ha V alley Bank, C harleston. Finance W. F. A ugustine, vice president, N a tio n al S haw m ut Bank, Boston, M assa chusetts; W. E lbridge B row n, vice p resid en t and tru s t officer, Clearfield T ru s t Company, Clearfield, P en n sy l vania; W. W. H opper, president, F irst T h i s is a store o£ f a m ili a r f a c e s . M e n who come h e r e once, a l w a y s come b a c k a g a in . . . and re p e a t c u s t o m e r s do build a business! S in ce 1861 FRANKEL'S Io w a ’s L a rg e s t B u sin e ss T ra in in g 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, Director American Institute of Business DES MOINES 10th and Grand Tel. 4-4221 63 N ational B ank of N evada, Reno, N e vada; A. L. M. W iggins, president, B ank of H artsv ille, H artsville, South Carolina. M em bership R. L. Dom inick, vice presid en t, T rad e rs Gate City N ational B ank, K ansas City, M issouri; H a rry C. H ausm an, secretary , Illinois B an k ers A ssociation, Chicago, Illinois; T ask er G. Low ndes, presid en t, Second N ational B ank, Cum b erland, M aryland; A. G. M axwell, vice president, Citizens and S o u th ern N a tional B ank, A tlanta, Georgia; R ay N esbitt, vice president, F irs t N ational Bank, Dallas, Texas; R ay R. Ridge, vice president, Om aha N ational Bank, Om aha, N ebraska; C harles L. Sm ith, president, F irs t N ational B ank, Salt L ake City, U tah. son, Dawson; New Jersey: H. Douglas Davis, vice president, Plainfield T ru st Co., Plainfield; New Mexico: E. R. W rig h t F irs t N ational Bank, S anta Fe; New York: F re d E. W orden, president, N ational B ank of A uburn, A uburn; N o rth Dakota: J. O. M ilsten, president, F irs t N ational Bank, Belfield; Oregon: C. E. W illiam son, cashier, B ank of Al bany, Albany; P ennsylvania: Carl W. F en n in g er, vice president, P rovident T ru st Company, P hiladelphia; South Carolina: Jo h n B. Slean, president, The County Bank, Greenwood; South Dakota: L. T. M orris, president, F irst N ational Bank, Richm ond; Iowa: C. A. K nudson, president, College Savings B ank, Ames; K ansas: H. A. B ryant, president, P arso n s Com m ercial Bank, P arsons; K entucky: Lee P. M iller, vice p resident, F id elity and Columbia T ru st Co., Louisville; Louisiana: W il liam B. G ladney, executive vice p resi dent, F id elity B ank and T ru st Co., B aton Rouge; M assachusetts: F. W in ch ester Denio, vice president, F irst N ational Bank, Boston; M innesota: Lew is G. Castle, vice president, N o rth ern N ational Bank, D uluth; N ebraska: D an J. Riley, president, B ank of Daw- State L egislation M artin Aas, vice presid en t, F irs t S tate Bank, N ew Rockford, N o rth Da kota; Dick C rutcher, president, F irs t N ational B ank, M cAlester, Oklahom a; Leon F ra se r, president, F irs t N ational Bank, N ew York, N. Y.; Oral Jones, vice president, City N ational B ank, W ichita Falls, Texas; L. G. K ennedy, vice presid en t, F irs t N ational B ank, D enver, Colorado; E. V. K rick, vice p resid en t and cashier, A m erican T ru st Com pany, San Francisco, California; E d w ard B. S tearns, vice p resid en t and cashier, M anchester N ational B ank, M anchester, New H am pshire; T hom as P. Sum m ers, president, Citizens U nion B ank, Rogersville, Tennessee; F ra n k J. T uhl, vice president, F irs t N ational B ank, St. Charles, M innesota. E x Officio C hairm an S tate L egislation, N a tional B ank Division: B ern ard C. W olfe, presid en t, F irs t N ational B ank, Tow anda, P ennsylvania; C hairm an S tate L egislation, Savings Division: W. W. Slocum, president, T he U nited Savings Bank, D etroit, M ichigan. State L egislative Council State C hairm en —A labam a: W. C. Bow m an, president, F irs t N ational Bank, M ontgom ery; A rkansas: W. A. M cDonnell, executive vice president, Com m ercial N ational B ank, L ittle Rock; Colorado: A lbert F. Cruse, p re si dent, R o u tt C ounty N ational B ank, S team boat Springs; D istrict of Colum bia: F ra n c is G. Addison Jr., president, S ecurity Savings and Com m ercial B ank, W ashington; F lorida: S. E. Teague, ch airm an of board, Capital City B ank, T allahassee; Georgia: H a rry T hornton, president, F irs t N ational B ank, E lberton; Illinois: W illiam H. M iller, vice president, City N ational B ank and T ru s t Co., Chicago; Indiana: D udley N. E lm er, p resident, Second S E R V IC E A Constantly Continuing Campaign for its Improvement • • MISSISSIPPI VALLEY TRUST COMPANY St. Louis N orthw estern B anker N ovem ber 19M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 64 * IOW A NEWS • C itizens N ational Bank, W atertow n; Tennessee: C. D. W alling, president, City B ank and T ru st Co., McMinnville; V irginia: T hom as H. B lanton, p resi dent, U nion B ank & T ru st Co., Bowl ing Green; W ashington: P. A. Strack, executive vice president, Peoples N a tional Bank, Seattle. F oun dation T rustees E x Officio: A. L. M. W iggins, p resi dent, B ank of H artsville, H artsville, South Carolina. In surance and P rotective E d w ard A. W ayne, secretary, N orth C arolina B ankers A ssociation, Raleigh, N orth Carolina. PERMANENTLY SHARP! STUDENTS! BUSINESS FOLKS! Here's Your Daily SUCCESS COMPANION! “ In Working T o g s ” (shown) Also Streamline balance models 39% smaller writing point is always sharp — that means neater Figures, more readable writing, clear carbons, distinct shorthand. SPIRAL GRIP for tireless writing. Double length propelling eraser. Sturdy, precise mechanism; outlasts all others. Uses double length, strong FINELINE leads. A lasting, welcome gift for anybody, any time. Just right for your own use, fool Make FINELINE yours today. KOCH BROTHERS PRINTERS - BOOKBINDERS - OFFICE OUTFITTERS STATIONERS - BUSINESS MACHINES GRAND AVENUE AT FOURTH Des Moines ( H 4 n / ¿ /2 c / J E z r u l c z i , C o u n s e l on B a n k D . R . W E S S L IN G , P R E S ID E N T N orthw estern B anker N ovem ber 19M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A gricultural C om m ission Term exp irin g 1944—Jesse K. Cope Jr., a ssistan t cashier, F irs t N ational B ank, Lansdale, P ennsylvania; E lford H. M orison, secretary -treasu rer and tr u s t officer, W ilton T ru st Company, W ilton, Maine; C harles T. O’Neill, vice p resident, N ational B ank and T ru st Co., C harlottesville, V irginia. Bank M anagem ent C om m ission W illiam A. McDonnell, executive vice president, Com m ercial N ational B ank, L ittle Rock, A rkansas, ch air man. Term exp iring 1942—W illiam S. E lliott, president, B ank of Canton, Canton, Georgia. Term exp iring 1944—W illiam J. Kinnam on, cashier, H u n terd o w n County N ational Bank, Flem ington, New Jersey; W illiam H. M iller vice p resi dent, City N ational B ank and T ru st Co., Chicago, Illinois; Ben E. Young, vice president, N ational B ank of De tro it, D etroit, M ichigan. E x Officio —Vice P resid en t N ational B ank Division: S. A. Phillips, vice president, F irs t N ational Bank, L ouis ville, K entucky; Vice P resid en t Sav ings Division: W. W. Slocum, p resi dent, The U nited Savings Bank, De tro it, M ichigan; Vice P resid en t State B ank Division: F ra n k P. Pow ers, president, K anabec S tate Bank, Mora, M innesota; Vice P resid en t T ru st Divi sion: Louis S. Headley, vice president, F irs t T ru st Com pany of S aint Paul, Saint Paul, M innesota; Vice P resid en t A m erican In stitu te of B anking Sec tion: David E. Simms, Salt Lake City B ranch, F ed eral R eserve B ank of San Francisco, Salt Lake City, U tah; Vice A d v e r t is in g p r o g r a m s fo r b a n k s an d tr u s t c o m p a n ie s . L e t us h e lp y o u g e t “ th in g s d o n e .” W r i te u s to d a y . P u b l i c R e l a t i o n s d l\o ln £ ± , P resid en t S tate S ecretaries Section: F re d M. Bowm an, secretary, K ansas B ankers A ssociation, Topeka, Kansas; P ast C hairm an B ank M anagem ent Commission: J. H arvie W ilkinson Jr., vice president, S tate-P lanters B ank and T ru st Co., Richm ond, V irginia. Com m erce and M arine C om m ission Term exp iring 1944—M yron F. Con verse, president, W orcester Five Cents Savings Bank, W orcester, M assachu setts; H ugh L. H arrell, vice president, F irs t N ational B ank and T ru st Co., O klahom a City, Oklahoma; F red erick E. H asler, ch airm an of board, Conti n en tal B ank and T ru st Co., New York, N. Y.; A. D. Simpson, president, N a tional B ank of Commerce, H ouston, Texas; A. J. W edeking, Dale State Bank, Dale, Indiana. E conom ic P olicy C om m ission Term exp irin g 1943—W illiam A. M itchell, vice president, J. P. M organ and Co., New York, N. Y. Term exp irin g 1944—A. George Gil m an, president, M alden Savings Bank, Malden, M assachusetts; Rudolf S. H echt, ch airm an of board, H ibernia N ational Bank, New Orleans, L ouisi ana; Jo h n C. W right, vice president and cashier, A m erican N ational B ank and T ru st Co., Chicago, Illinois. P ub lic R elation s Council Gwilyn A. Price, president, PeoplesP ittsb u rg h T ru st Co., P ittsb u rg h , P en n sylvania, chairm an; Jo h n D. A rth u r, Society for Savings, Cleveland, Ohio; F red M. Bowm an, secretary, K ansas B ankers A ssociation, Topeka, Kansas; V ictor Cullen, assista n t secretary, M ississippi V alley T ru st Co., St. Louis, M issouri; A. J. Gock, vice chairm an of board, B ank of A m erica N. T. & S. A., San Francisco, California; C. Lane Goss, vice president, W orcester County In stitu tio n for Savings, W orcester, M assachusetts; R. R. Rollins, vice president, B ankers T ru st Company, Des Moines, Iowa. C om m ittee on P ub lic E ducation— Jo h n D. A rth u r, Society for Savings, Cleveland, Ohio. R esearch C ouncil R aym ond N. Ball, president, LincolnA lliance B ank and T ru st Co., Roches ter, New York; W all G. Coapman, secretary, W isconsin B ankers Asso ciation, M ilwaukee, W isconsin; M. A. Lim bocker, president, Citizens N a tional Bank, E m poria, K ansas; Leon M. L ittle, president, N ew E ngland T ru st Co., Boston, M assachusetts; W illiam A. M cDonnell, executive vice president, Com m ercial N ational Bank, L ittle Rock, A rkansas; J. Cam eron Thom son, director, N o rth w estern Na- 65 — • tional B ank and T ru s t Co., M inneap olis, M innesota; P. M. Davis, president, A m erican N ational B ank, N ashville, T ennessee. C onsum er Credit C ouncil T. C. Boushall, president, M orris P lan B ank of V irginia, R ichm ond, V irginia; Jo h n H. Lucas, vice president, Peop les-P ittsb u rg h T ru s t Co., P ittsb u rg h , P ennsylvania; R. B. U m berger, execu tive vice p resid en t, In d u stria l N a tional B ank of Chicago, Chicago, Illi nois; Don H. W agem an, vice president, A m erican N ational B ank, C heyenne, W yom ing. Graduate School of B an king Board of R egen ts Term exp irin g 1942—D avid E. Simms, Salt L ake City B ranch, F e d eral R eserve B ank of San Francisco, Salt L ake City, U tah. Term exp irin g 1944—W illiam A. T en E ick Jr., a ssista n t cashier, The Chase N ational B ank, New York, N. Y. (class of 1941.) E x ecu tiv e C om m ittee —D avid E. Sim m s, Salt L ake City B ranch, F e d eral R eserve B ank of San Francisco, Salt L ake City, U tah. F in an ce C om m ittee —W. L. H em ing w ay, president, M ercantile-Com m erce B ank and T ru st Co., St. Louis, Mis souri; George T. Newell, vice p re si dent, M an u factu rers T ru st Co., N ew York, N. Y. P U B L I S H E R ’S S T A T E M E N T S ta te m e n t of th e O w n e rs h ip , M a n a g e m e n t, C ir c u la tio n , etc., r e q u i r e d b y th e A c t of C o n g re s s of M a rc h 3, 1 9 3 3 , of th e N o r t h w e s t e r n - B a n k e r , p u b lis h e d m o n th ly a t D es M o in es, Io w a , fo r O c to b e r, 1, 1 9 4 1 . " _ 1. N am e of P u b lis h e r : • C liffo rd D e P u y , D es M oines, I o w a . A ss o c ia te P u b lis h e r , R . W . M o o r h e a d , D es M oines, Io w a . E d ito r , H e n r y H . H a y n e s D es M oines, Io w a . 2. O w n e r, C liffo rd D e P u y , D e s M oines, Io w a . 3. T h a t th e k n o w n b o n d h o ld e rs , m o rtg a g e e s a n d o th e r s e c u r ity h o ld e rs o w n in g o r h o ld in g 1 p e r c e n t o r m o re of to ta l a m o u n t of b o n d s, m o rtg a g e s , o r o th e r s e c u ritie s a r e : N o n e. R . W. M o o r h e a d , A sso c ia te P u b lis h e r . S w o rn to a n d s u b s c rib e d b e fo re m e th is 1 s t d a y of O cto b e r, 1 9 4 1 . H en r y H . H a y n es, (S e a l) N o ta r y P u b lic . (M y co m m issio n e x p ire s J u ly 4, 1 9 4 2 .) IO W A NEWS • M E E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 24 E p p e r s o n a n d C o m p a n y ...................................... 27 F F e d e r a l H o m e L o a n B a n k ................................ F i r s t N a t i o n a l B a n k — M a s o n C i t y ............. F i r s t N a t i o n a l B a n k — S i o u x C i t y ............... F i r s t W i s c o n s i n N a t i o n a l B a n k .................. F r a n k e l C l o t h i n g C o m p a n y .............................. 60 51 53 59 62 G G e n e r a l M o t o r s A c c e p t a n c e C o r p o r a t i o n 26 G u a r a n t y T r u s t C o m p a n y ................................. 42 H a w k e y e M u t u a l H a i l I n s u r a n c e A s s n . . . 65 H o m e F e d e r a l S a v i n g s a n d L o a n A s s n . . 62 H o m e I n s u r a n c e C o m p a n y .............................. 5 M e r c h a n t s M u t u a l B o n d i n g C o ...................... 61 2 M e r c h a n t s N a t i o n a l B a n k ................................. M in n e a p o lis M o lin e P o w e r I m p l e m e n t C o m p a n y ................................................................. 36 M i s s i s s i p p i V a l l e y T r u s t C o ........................... 63 X N a t i o n a l B a n k o f D e t r o i t ................................... N a t i o n a l B a n k o f W a t e r l o o ............................ N o r t h e r n T r u s t C o m p a n y ................................. N o rth w e ste rn N atio n al B an k an d T ru st C o m p a n y ................................................................. 61 54 58 O m a h a N a t i o n a l B a n k ........................................ 19 O P P h i l a d e l p h i a N a t i o n a l B a n k ............................ 20 P u b l i c N a t i o n a l B a n k a n d T r u s t C o ......... 61 I Io w a -D e s M oines N a tio n a l B a n k a n d T r u s t ........................................................................... J S 68 33 Jam ieson and C om pany Iv 64 K o c h B r o t h e r s .................. G e o r g e L a M o n t e a n d S o n ................................. L e s s i n g A d v e r t i s i n g C o m p a n y ...................... L i v e S t o c k N a t i o n a l B a n k — C h i c a g o -----L ive S to c k N a tio n a l B a n k — O m a h a . . . . . L ive S to c k N a tio n a l B a n k — S ioux C i t y . . 6 64 50 46 34 S c a r b o r o u g h a n d C o m p a n y .............................. 56 S h a w , M c D e r m o t t a n d S p a r k s ....................... 28 S t o c k Y a r d s N a t i o n a l B a n k — St . P a u l . . . 32 T T o d d C o m p a n y .......................................................... 44 TJ U n i t e d S t a t e s C h e c k B o o k C o m p a n y ----U n i t e d S t a t e s N a t i o n a l B a n k ......................... W C h a r l e s E . W a l t e r s C o m p a n y ......................... J a y A. W e l c h ............................................................... W e s s l i n g S e r v i c e s ................................................ W e s t e r n M u t u a l F i r e I n s u r a n c e C o ............ 43 55 64 22 Our policy provides a maximum assess-ment of 2 Vi % in Zones One and Two—and 3 x/i % in Zone Three (Western Iowa). Oldest and Largest in Des Moines H a w k e y e M u tu a l H a il D ia l 4-7119 ELMER E. M ILLER Pres, and Sec. 40 38 Jlaw< G&it DES MOINES BUILDING-LOAN & SAVINGS ASSOCIATION 411 6th A v e. 30 HUBERT E. JAMES Asst. Sec. M em ber Federal Home Loan Bank System Insurance Association C arver B ld g . F o r t D o d g e , Io w a For ci Fresh Start Index to Advertisers A A l l e n W a l e s A d d i n g M a c h i n e C o r p ............ A l l i e d M u t u a l C a s u a l t y C o m p a n y ............... A. C. A l l y n a n d C o m p a n y ................................. A m e r i c a n H o t e l A s s o c i a t i o n ............................ A m e r i c a n I n s t i t u t e o f B u s i n e s s .................... A m e r i c a n N a t i o n a l B a n k & T r u s t C o.. . . 67 24 28 65 62 57 B a n k e r s T r u s t C o m p a n y ............................... 48-4 9 B i s m a r c k H o t e l ....................................................... 62 H . B. B u c k h a m .......................................................... 62 B u r r o u g h s A d d i n g M a c h i n e C o ...................... 29 C e n t r a l N a t i o n a l B a n k a n d T r u s t C o.. . . C h a s e N a t i o n a l B a n k ........................................... C i t y N a t i o n a l B a n k a n d T r u s t ...................... C o m m e r c i a l I n v e s t m e n t T r u s t ....................... C ontinental-IU inois N a tio n al B an k and T r u s t ........................................................................... C o n tin e n tal N a tio n a l B a n k — L in co ln . . . . 3 4 40 27 in nearby territories, representing the seventh 45 43 largest industry, allied for service and progress. More than 5000 hotels on the continent and I) F. E . D a v e n p o r t a n d C o .................................... 4 2-5 4 Des M oines B u ild in g , L o a n a n d S a v in g s A s s o c i a t i o n ............................................................ 65 D r o v e r s N a t i o n a l B a n k ...................................... 55 AMERI CAN HOTEL ASSOCIATION Northwestern Banker Novem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 66 IN THE DIRECTORS' R o o m Tit for Tat Pretty Soft A h u sb an d drew his ch air beside his w ife’s sew ing m achine. “D on’t you th in k y o u ’re ru n n in g too fast?” he said. “Look out! You’ll sew th e w rong seam! M ind th a t corner, now! Slow down, w atch y o u r fingers! Steady!” “W h a t’s th e m a tte r w ith you, Jo h n ? ” said his w ife alarm ed. “I ’ve been r u n n ing th is m achine for years!” “W ell, dear,” rep lied h e r husband, “I th o u g h t you m ig h t like m e to help you, since you help m e drive th e car.” “Do you like m y new hat? I earned it m yself.” “How did you do it? ” “Oh, I cut dow n on m y h u sb an d ’s lunch and tobacco m oney.” saw said w ay look All Even M atron (at th e co u n ter): “I suspect th a t y o u ’re giving m e aw fully sh o rt w eight for m y m oney!” Grocer: “W ell, I ’m positive y o u ’re giving m e an aw fully long w a it for m ine.” Take It and Like It N ew lyw ed H usband: “Do you m ean to say th e re ’s only one course for d in n e r tonight? J u s t cheese?” W ife: “Yes, dear. You see, w h en th e chops cau g h t fire and fell into th e des sert, I had to use th e soup to p u t th e fire out.” You'd Look, Too A n old g en tlem an dropped som e th in g on th e floor of th e th e a tre and w as m aking a g re at fuss try in g to re cover it. F in ally a lady n e a r him asked w h a t he h ad lost. “A choco late caram el,” he replied. “All th a t fuss over a piece of candy?” said th e lady in a disgusted tone. “Yes,” said th e m an, “m y te e th are in it!” A . D. or B. C . Steno: “W h at day of th e m o n th is it?” Boss: “I dunno. Look a t th e cal en d ar.” Steno: “W ell, w h a t day of th e w eek is it? ” Boss: “I dunno. Look a t th e p ap er.” Steno: “I did, b u t I don’t know w h eth e r it’s y e ste rd a y ’s p ap er or to day’s.” N orthw estern B anker N ovem ber 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H usband: “One n ig h t w hen you w ere aw ay, I h eard a b u rglar. You should have seen me going dow nstairs th re e steps a t a tim e!” Wife: “W here w as he—on th e roof?” Don't Miss Anything Wrong Again Traffic Officer: “As soon as I you com ing aro u n d th e curve, I to m yself, ‘Forty-five a t least.’ ” W om an D river: “W ell, y o u ’re off. I t ’s th is h a t th a t m akes m e so old.” Kitty, Kitty! M ountain Guide: “Be careful n ot to fall here. I t ’s dangerous. B ut if you do fall, rem em ber to look to th e left. You get a w onderful view .” Safety First “Papa, w h at is a p ro p h et?” “My son, a p ro p h et is a m an w ho tells you w h a t is going to hap p en b u t doesn’t bet any m oney on it.” Lost Cause T he m in ister m et Tom, th e village n e ’er-do-well, and, m uch to th e la tte r’s su rp rise, shook him h eartily by th e hand. “I ’m so glad you have tu rn e d over a new leaf, T hom as,” said th e good m an. “I w as delighted to see you a t th e p ray er m eeting last n ig h t.” “Oh,” said Tom a fte r a m om ent of doubt. “So th a t’s w here I w as.” Strange “A re you th e girl w ho took m y or d er?” asked th e im p atien t gentlem an in th e cafe. “Yes, sir,” replied th e w aitress po litely. “W ell, well!” rem ark ed th e custom er, “You don’t look a day older.” Rapid Fire Son: “Dad, w h a t’s th e difference be tw een an o rd in ary gun and a m achine g u n ?” Dad: “A big difference, m y boy. It is ju st as th ough I spoke, and th en y o u r m o th er spoke.” She Must Be Mary: “Indeed, she is v ery m uch in love.” Julia: “W hat m akes you th in k so?” Mary: “Well, w hen h e ’s aw ay she w rites letters to him w h eth er she w an ts m oney or n ot.” Sixteen Times Better The stu d en t m editated tho u g h tfu lly ere he spoke. “I am not sure, father, w h eth er I shall be a specialist for th e ears or th e te e th .” “Choose th e teeth, m y boy; everyone has thirty-tw o of them , b u t only two ears.” Cutting Remarks “I do m y ice sk atin g in th e w in ter on th e sam e spot I do m y horseback riding in th e sum m er.” “Do people laugh w hen you fall dow n?” “No b u t th e ice m akes some fu n n y cracks.” The Old Devil Poor Shot R ecruiting Officer: “A nd I suppose you w a n t a com m ission?” In su ran ce Salesm an: “No, th a n k s— I ’m such a bad shot th a t I ’d ra th e r w o rk on stra ig h t salary .” No Substitutes Sergeant: “W h at is th e first th in g to do w hen cleaning a rifle?” P rivate: “Look a t th e n u m b er.” Sarge: “A nd w h a t has th a t to do w ith it? ” Buck: “To m ake su re I ’m cleaning m y ow n gun.” New Curate: “A nd w h a t did you th in k of m y serm on on Sunday, Mrs. Jo n es?” Mrs. Jones: “B eautiful, sir, and so instructive. We d idn’t know w h at sin w as u n til you came here.” Follow the Leader Wife: “D idn’t you have any luck at th e races, dear?” H usband: “Luck! W hy, w hen m y horse passed me I had to lean over th e fence, point, and yell: ‘T hey w en t up th a t w ay ’.” W e s t r iv e t o b u il d T H E W O R L D ’S B E S T A D D IN G M A C H IN E S AND OUR USERS BELIEVE WE DO A D D IN G M A C H IN E C O R P O R A T IO N 444 Madison Avenue, New York, N. Y. SALES AND SERVICE IN 4 0 0 AMERICAN CITIES AND IN 4 0 FOREIGN COUNTRIES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CUSTOMERS . . FOR HELPFUL CORRESPONDENT BANKING ★ Regardless of size or location, Iowa Banks insure complete, up-to-the-minute service for customers by making full use of the correspondent facilities provided by Iowa's Largest Bank. ★ Correspondent services include: ★ Co-operation in meeting the needs of your customers who require larger lines of credit than you can extend ★ Fast transit service for the collection of checks and drafts. ★ The transfer of funds. ★ Safe-keeping of securities for your Bank and your customers. Y Y : YY -. ■ Y. ; ’ - : ;/ ★ Credit information. ★ Depository for W ■ V VJ» Government and Municipal Bonds for investment; orders executed for the purchase or sale of other securities. ★ Complete Trust Department service. ★ Assistance with operations problems, installation of equipment cient handling —* !A---- H mum & TRUST company ; ; : M em ber F ederal D ep o sit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B ill B i
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