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NOVEMBER
1942

».VICTORY

W . L. H E M IN G W A Y
President, M ercantile-C om m erce Bank & Trust Co., St. L ouis
President, Am erican Bankers A ssociation

BUY
U N IT E D
STA TES

WAR
BONDS
AND

STAMPS


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Federal Reserve Bank of St. Louis

TH ER E IS N O P L A C E LIK E N E B R A S K A "
PaSe 12

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Correspondent Factors
A t this hank is availab le com p lete corresp on dent service
to hanks in Iowa and the m id d le w est, in clu d in g central
location , size, age, exp erien ce, organ ization , fa c ilities and
contacts.
W hen yon select this as your corresp on d en t bank, you
confirm th e ch oice o f h un d red s o f your banker frien d s,
w ho already use M erchants N ation al Bank facilities.

A CEDAR R A P ID S B A N K

CEDAI*
RAPIDS

J f i
SERVICING A L L IOWA,

MERCHANTS

Ur

NATIONAL BANK

ifE fotójiíM
im;

!0r

'

OFFICERS
J a m e s E . H a m i l t o n , C h a irm a n
S . E . C o q u i l l e t t e , P re s id e n t
H . N . B o y s o n , V ice P re s id e n t
R o y C . F o l s o m , V ice P re s id e n t
M a r k J . M y e r s , V. P re s. & C a sh ie r
G e o r g e F . M i l l e r , V. P re s . & T r. Officer
M a r v i n R . S e l d e n , V ice P re s id e n t
F r e d W . S m i t h , V ice P re s id e n t
J o h n T. H a m i l t o n II , V ice P re s id e n t
R. W . M a n a t t , A sst. C a sh ie r
L. W . B r o u l i k , A sst. C a sh ie r
P e t e r B a i l e y , A sst. C a sh ie r
R. D. B r o w n , A sst. C a sh ie r
O . A. K e a r n e y , A sst. C a sh ie r
S t a n l e y J . M o h r b a c h e r , A sst. C a sh ie r
E . B. Z b a n e k , B u ild in g 1 M a n a g e r

Cedar Rapids
Member Federal

Deposit

Iowa
Insurance Corporation

N orthw estern Banker published m onthly by the D e Puy P u blishin g Company, at 527 7th Street, D es M oines Iowa
Subscription, 35c per copy, $3.00 per year. Entered as second c lass matter at the D es M oines post office. ’


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• Today, all the resources of the Allen Wales Adding
Machine Corporation are turned to the manufacture
of vital war supplies for our country. When Victory
comes, we will resume making Allen Wales Adding
Machines which our friends tell us are the world's best.
In the meantime, you can best help yourself and us by
keeping your Allen Wales Adding Machines in per­
fect running condition. We suggest that you investigate
our Annual Maintenance Service by calling the near:
est of our 400 agencies, or write to the Home Office.

ALLEN W WALES
A D D IN G M A C H IN E C O R P O R A T IO N

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Federal Reserve Bank of St. Louis

4 4 4 Madison Avenue. New York, N. Y.

4

RESOURCES
C a sh a n d D u e f r o m B a n k s ......................................................... , . $ 9 4 5 ,6 7 9 ,4 2 5 .3 3
G o v e r n m e n t O b l ig a t io n s , d ir e c t a n d f u l l y
g u a r a n t e e d .....................................................................................................
1 ,7 9 6 ,7 3 6 ,2 0 7 .5 4
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 .........................................................
1 0 6,509,821.68
S t o c k o f F e d e r a l R e s e r v e B a n k ........................................................
6 ,0 1 6 ,2 0 0 .0 0
O t h e r S e c u r i t i e s ..............................................................................................
1 7 0 ,4 0 1 ,4 3 3 .5 2
L o a n s , D is c o u n t s a n d B a n k e r s ’ A c c e p t a n c e s ................................
8 0 8 ,5 3 9 ,5 9 9 .9 9
B a n k in g H o u s e s ..............................................................................................
3 6 ,9 6 1 ,1 0 0 .1 9
O t h e r R e a l E s t a t e ........................................................................................
6 ,3 2 1 ,2 2 2 .3 3
M o r t g a g e s ...........................................................................................................
7 ,8 1 2 ,8 9 6 .5 5
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 .........................................................
2 ,4 8 5 ,8 2 1 .0 0
O t h e r A s s e t s ....................................................................................................
1 2 ,4 9 2,223.56

U. S.

£ 3 ,8 9 9 ,9 5 5 ,9 5 1 .6 9

LIA BILITIES
C a p it a l F u n d s :
C a p it a l S t o c k ............................................................. £ 1 0 0 ,2 7 0 ,0 0 0 .0 0
S u r p l u s ..................................................................... .
1 0 0 ,2 7 0 ,0 0 0 .0 0
U n d iv id e d P r o f i t s ............................................
4 4 ,1 0 8 ,9 0 7 .2 4
" $

11,9 9 1 ,0 6 7 .8 6
3 ,7 8 7 ,8 6 0 .8 2

D e p o s i t s ...........................................
A c c e p t a n c e s O u t s t a n d i n g ................................$
6 ,6 5 8 ,6 4 9 .0 9
3 ,7 6 3 ,2 5 7 .9 1
L e s s A m o u n t in P o r t f o l i o ...............................
L i a b il it y a s E n d o r s e r o n A c c e p t a n c e s a n d F o r e ig n B il l s .
O t h e r L i a b i l i t i e s ...........................................................................

3 ,6 2 8 ,4 6 5 ,5 9 2 .6 8

N orthw estern Banker

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Federal Reserve Bank of St. Louis

2 4 4 ,6 4 8 ,9 0 7 .2 4

R e s e r v e f o r C o n t i n g e n c i e s .....................................................................
R e s e r v e f o r T a x e s , I n t e r e s t , e t c ..........................................................

N ovem ber 1942

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

are you
ni your

CHECKS?
Do your checks reflect the character, effi­
cien cy an d dignity of your b usiness? Are
th ey distinctively yours— a s is the trade
m ark y o u 'v e m a d e n a t io n a lly k n o w n
through

your

advertising?

»

» M any

p rogressive b an k s and corporations are
con sciou s of the a d d ed v a lu e of checks
d e sig n ed to supplem ent their public re­
lations program s. Their trade m arks are
m ad e a part of their check p ap er itself
— u sin g for that purpose La M onte S afety
Paper. » » By this m ea n s th ey also a s­
sure the sa fe transm ission of funds. For
La M onte

S afety

P apers — invented

by

G eorge La M onte in 1871 — safegu ard
ch eck s a g a in st counterfeiting and fraud­
u le n t a lte r a tio n . » » B an k s, of c o u r se,
are particularly a w a re of the n ecessity
for protecting funds in transit. And, con­
seq u en tly, m ore than 75% of the nation's
largest

banks sp ecify La M onte Safety

Paper for their checks. » » H ave you
thought of h a v in g your trade mark or
sp ecia l d esig n m ad e part of yo u r check
paper? The lithographer or printer w ho
m ak es

your

checks

has

sam p les

of

La M onte Safety Papers illustrating h ow
this is done for other lea d in g concerns.

G i v e Uncle S a m Your
Check for WAR BONDS!


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Federal Reserve Bank of St. Louis

6

0 tn m
H ell from the skies over England, so
brutal that it once drove that great
nation almost to the breaking point, has
nonetheless succeeded in taking only
45,871 British lives from the beginning
of the war to August 31, 1942.
In those same three years, right here in
America, approximately 30,000 deaths have
occurred from fire!

lI liP llL '

imml'iuuiiOBiflipoO*'■|

Think of it! Here, as yet, are no
screaming bombs, no dreaded roar of
enemy plane motors, but deaths from
fire alone, as real and as painful as those
caused by air raids, total two-thirds of
the bom b toll in England.
Further — at this crucial point in our
struggle for existence these are in many
cases as costly in man power and ma­
chine-pow er as are the losses from
plane-dropped high explosive and in­
cendiary missiles.
H ere’s a way in which America’s citi­
zen army can cut this sabotage — and
how you can help!
JUST BE CAREFUL ABOUT FIRES!
Make it your job to see to it that every
preventable fire is prevented. Every time
you see a danger spot, report it to the
proper authorities if you cannot elimi­
nate it yourself.
For m any years the H om e fleet of
insurance companies has helped to re­
duce fire loss by elimination of many
fire hazards through experience, research
and continuous inspections. But now,
more than ever, America needs the help
not only of those whose business it is
to deal with fire losses, but also of every
citizen and home owner — for no fire
loss today is measurable in dollars. Pre­
venting fires is part of winning the war
and that’s a job fo r all o f us.

☆ TH E HOM E ☆
(Z d Z y
NEW
FIRE •

AUTOMOBILE

YORK
.

MARINE I NSURANC E

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


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Federal Reserve Bank of St. Louis

NOVEMBER

n o iä h w e / t e r n

19 4 2
DES

MOINES

FO R T Y -S E V E N T H Y E A R

NUMBER 664

Oldest Financial Journal West of the Mississippi River

IN TH IS ISSU E
CLIFFO RD DE PUy
Publisher
R A L P H W. M O O R H E A D
Associate Publisher

Editorials
A cro ss th e D esk fro m th e P u b lis h e r.............................. _........................ ..............................

8

Feature Articles

H EN R Y H. H A Y N E S
Editor

Frontispiece ...................................................................................................... 11

527 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

B a n k e rs D iscuss C u rre n t F in a n c ia l P ro b lem s— Iow a C o n v en tio n ............................ 15
P ic tu re s a t th e Iow a C o n v en tio n............................................ ................................ ...15, 16, 17

T h e re Is No P lace L ike N e b ra s k a ............................................................................................ 12

V alid C o n tra c t in W ritin g M ade T h ro u g h C o rresp o n d en ce— L e g a l.......................... 18
H ow O u r B a n k Is M eetin g G o v ern m en t C o m p etitio n .......................... O luf G andrud 20
N ew s a n d V iew s........ ..................................................................................... Clifford De P uy 22

Neb raska Convention Section
NEW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth Ave.
Suite 1 806
Telephone MUrray Hill 2-0326

T he P ro g ra m fo r th e 45th C o nvention.......................... ............... ........................................ 24
“ Roll o f H o n o r” B a n k s................................................................................................................ 29
O m aha C le a rin g s ..........
30
N e b ra sk a N ew s fro m N e a r an d F a r ....................................................................................... 32
L incoln L ocals ................................................................................................................................ 33

Insurance
T h e re Is a V a s t N ew M a rk e t fo r C a su a lty C o v erag e................... W. F. Som erville 37
M IN N E A P O L IS , O FFICE
Jos. A . Sarazen
Associate Editor
Telephone Hyland 0575

Bonds and Investments
C om m ercial W ill H av e a L oad to C a r r y .....:........................................ Jam es H. Clarke 39

State Banking News
M in n eso ta N ew s ......................................................
T w in C ity N ew s.......................
S o u th D a k o ta N ew s............ ...............................................................
N o rth D ak o ta N ew s.................................................................................................................
Iow a N ew s ....................

45
47
51
53
55

Iow a N ew s fro m H e re a n d T h e re .......................... ................. ...........J. A . Sarazen 62
H ow Cost A n a ly sis H elp s In c re a se E a r n in g s ..................................... A . G. S a m 66
W h a t R a tio n in g a n d P ric e C eilings M ean to F e e d e rs ........ ...... A lv in Johnson 68

CONVENTION CALENDAR
ST A TE M EETIN G S
Nebraska Bankers C onvention— Omaha,
H otel Fon tanelle— N ovem ber 11-12.


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Federal Reserve Bank of St. Louis

The Directors* Room
A F e w S h o rt S to rie s to M ake You L a u g h ............ ............................................................... 70

8

Across the Desk
From the Publisher

How to Control
In speaking before the
Our "Newlv
Iowa Bankers convention,
r->
. i k. /
n Dr. Irving Fisher, profesGreated Money7 sor of„ economics, emeritus,
..
of Yale University, discussed wartime inflation
and taxation and emphasized that inflation was not
caused by either the public or the banks buying
government bonds out of savings, but it is only
when the government is spending newly created
money.
Therefore, the job which we face in America is
how to control our newly created money.
As Mr. Fisher puts it, “ If what the government
spends were obtained from private individuals
curtailing their spending by the same amount, the
government spending could not be called inflation­
ary, the government would then be merely spend­
ing what, without the war, the people would have
been spending. In other words, it is not mere
spending as such which makes inflation but it is
governmental spending of newly created money. ’’
Basically, Dr. Fisher believes that inflation is
only going to be controlled if we have less spend­
ing and more saving rather than the creating of
“ new money,” sometimes referred to as “ invisible
greenbacks. ”
Commenting on this subject, Dr. Fisher says:
“ There are two ways in which the income of the
people of the United States can go to the United
States government for the purpose of helping the
war effort. One is through taxes and the other
through loans out of savings, either voluntary or
forced. In my own opinion, the Treasury is over­
stressing taxes. We must untax savings or else we
run the risk by taxing them of hilling the goose
that lays the golden egg, for savings mean future
N orthw estern B anker


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Federal Reserve Bank of St. Louis

N ovem ber 19k2

income. The Treasury has proposed a spendings
tax in addition to the present income taxes.”
We quite agree that the “ untaxing of savings”
is very important at this time.
America has been built on the individual initia­
tive and individual savings and if we do kill the
goose that lays the golden egg, as has been men­
tioned, the future of this country will not be as
bright as we hope it will be after this conflict is
over.
In the meantime, we must control our “ newly
created money” if we are to prevent inflation and
at the same time we must make it worthwhile and
desirable to save rather than to spend.
AVilliam N. Mitten,
p re s id e n t of the
S tep h e n s National
Bank, of Fremont,
Nebraska, was much interested in our survey
showing “ What Banks Are Doing to Increase
Their Income” and believes that the reduction of
interest rates on savings and CD’s which stood
No. 1 on our list is a desirable and proper pro­
cedure.
In referring to what his own bank has done, Mr.
Mitten wrote the N o r t h w e st e r n B a n k e r as fol­
lows :
“ The comments by bankers about ‘What They
Are Doing to Increase Their Income’ in your Oc­
tober issue are very interesting. An exchange
of ideas on such a subject to me is most worth­
while. As one of the regular readers of your fine
N o r t h w e st e r n B a n k e r , may I say thank you for
your efforts in behalf of the bankers in this sec­
tion.
“ It appears that a reduction in interest on

Reduction of Interest
Rates on Savings and
CD 's Recommended

9

savings and time money gets the ‘nod’ over all
other suggestions. This sounds like good reason­
ing to me, especially so since we made a change in
our interest paid six months ago. We had been
paying 2 per cent annually on all amounts up to
$1,000 on savings deposits, and 2 per cent on the
first $1,000 and 1 per cent on all amounts above
$1,000 on time deposits. Effective April 1st we
reduced the interest on savings to 2 per cent on
the first $500 and no interest above this amount,
and 2 per cent on the first $500 and 1 per cent on
all amounts above that on time money, and would
accept amounts up to $100 per month in our Sav­
ings Department.
“ We changed this after an analysis of our ac­
counts revealed that the regular saver no longer
existed, but that our savings accounts were more
or less investment accounts for our depositors.
Why, then, should we accept this kind of money
at 2 per cent when we could get only % to 1 per
cent on short-term Government bonds? This
seemed like poor business to us. Then, too, we
felt this type of depositor should be encouraged
to buy War Bonds.
“ What were the results of the change in our
rate ? Savings deposits increased about $50,000.
We have sold over $216,000 of War Bonds, most
of which has been withdrawn from our checking
and savings accounts. Savings in interest paid
is about $1,000 from the figure paid six months
ago, even with the increase of deposits of $50,000.
The question now in my own mind is—should we
make a further reduction?
“ Have you ever made a survey of the banks in
this section of the country as to just what interest
they are allowing on savings and time money?
I think that you will find that the rate varies in
most banks—at least this was the information that
we had when we made inquiry from several banks
in Nebraska about our size the time we were dis­
cussing a change in our rate.
“ Don’t you believe that it, would be of interest
to your N o r t h w e s t e r n B a n k e r readers and that
the majority of the bankers from whom you made
the inquiry as to how to increase their income,
would be interested to know what other banks of
their size are paying? Couldn’t you set this up in
different categories—that is, banks with about the
same size communities and the same deposits?
“ I know that I should be very interested in the
results of such a survey. It is my firm belief that it
would be shocking to you, and a surprise to all
banks to see the variations.
“ I think that we are in the same position as


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Federal Reserve Bank of St. Louis

most banks—deposits are on the uptrend, and loans
are on the downtrend.”
We might say for Mr. Mitten’s benefit that the
N o r t h w e st e r n B a n k e r has on various occasions
made surveys on interest rates charged on savings
and time deposits by bankers in various sections of
the country and will be happy to do so again in the
near future.

Uniform Service
Charges Needed
A i p. • i t
And Desirable

I t is our belief that some

killd o£ fair and adei uate
charges are certainly more
,desirable
. ,,
,,
,,
than
none at, all
and if uniform charges such as those recently sug­
gested by Melvin W. Ellis, superintendent of the
Department of Banking for Iowa, are adopted
we believe it will be helpful to the banks, to their
customers, and will establish a certain uniformity
which is a point in its favor.
The service charges suggested by Superintendent
Ellis and approved by the State Banking Board
are shown on page 62 of this issue of the N o r t h ­
w estern

B anker.

The N o r t h w e st e r n B a n k e r has been informed
that these rates have been “ attacked” by an or­
ganization outside the state which makes a busi­
ness of installing service charge programs for
banks and realized that if a uniform plan is put
into operation in Iowa and other states that it will
deprive them of a certain amount of business.
In a recent letter of theirs to banks in this
state, the president of this company says: “ It is
encouraging that Iowa bankers should have be­
come probably the first state-wide group to rec­
ognize the need for joint action in establishing
a uniform service charge program to meet devel­
oping wartime banking necessity. It is unfor­
tunate, however, that the Banking Board’s sched­
ule is so thoroughly inadequate for the job to be
done.”
We do not know what this outside firm suggests
in the way of service charges because none are
mentioned and none provided in their broadside
so their arguments are not very sound nor sub­
stantial.
We do know that Superintendent Ellis has one
thought in mind and that is to help the banks of
Iowa increase their income through fair and uni­
form service charges, and therefore we believe
that his program is worth considering and should
be adopted.

N orthw estern Banker

N ovem ber 19b2

10


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Federal Reserve Bank of St. Louis

11

I f y o u w o u ld li k e e x tr a c o p ie s o f th i s p ic tu r e w e w i l l b e g la d to s e n d th e m to y o u w ith o u r c o m p lim e n ts .— T h e N o r th w e s te r n B a n k e r.

N orthw estern B anker

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Federal Reserve Bank of St. Louis

N ovem ber 19k2

12

Hogs plus corn plus good prices equal p ro sp erity fo r th e farm er, and th is y ear N eb rask a farm ers, and bankers, are going to
make up fo r some lean years

"There Is No Place Like Nebraska"
A Northwestern Banker Survey
Bankers From All Sections of the Cornhusker State, Reporting on Business and Agricultural
Prospects, All Sing the Song of Good Prices, Plenty, and Prosperity
EBRA SK A b ankers, replying to
a N orthw estern B anker su rv ey
ju s t m ade on general business
and ag ricu ltu ral conditions in the
state, are h ighly optim istic as to the
econom ic p ictu re for th e com ing fall
and w in ter. M any sections of Ne­
brask a are h arv estin g th e b est crops
in th e p ast ten-year period, according
to replies received, and th e en tire
sta te is enjoying p ro sp erity and pro s­
pects fa r in excess of an y th in g expe­
rienced d u rin g re c e n t seasons. Feed
w ill be plentiful, livestock is on farm s
in considerable num bers, farm ers are
well pleased w ith prices and are feel­
ing fine. The only shadow cast on th e
scene is th a t of a feared labor shortage
to help get th e bu m p er crop into bin
and crib. T his shortage is being over­
come in one locality, how ever, by clos­
ing th e high school for a two-weeks
period and p u ttin g th e y o u n g sters to
hu sk in g corn and o therw ise aiding in
the h arv estin g of crops.
T he follow ing are th e rep o rts w hich
the b a n k ers send in:

N

"Future Prospects Favorable"
L. W. ROSS
Vice President
The National Bank of Norfolk

W e are hap p y to be able to advise
th at, gen erally speaking, th e corn crop
in th is te rrito ry is th e larg est in m any
years. In fact, som e farm ers w ho have
N orthw estern B anker

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Federal Reserve Bank of St. Louis

N ovem ber 19h2

resided here for a lifetim e say th a t
th e y n ever have raised a b e tte r crop.
T his com bined w ith th e fact th a t hogs
and cattle are com m anding v ery favor­
able prices is conducive to a general
good feeling am ong our farm ers.
It w ould appear th a t prices on all
farm products should rem ain re la ­
tiv ely high du rin g th e n ex t few
m onths, and it would, therefore, seem
th a t th e fu tu re prospects of th e ag ri­
c u ltu ral pictu re w ould be favorable.
B ank deposits are m ounting, b u t the
dem and for loans is h ard ly keeping
pace.

"General Picture Looks
G ood"
First National Bank, Chadron

Our te rrito ry is enjoying th e resu lt
of th e best crop season in th e p ast
th irte e n years. T his m eans som ething
to a te rrito ry th a t has been experienc­
ing continued dro u g h t conditions, as
w ell as depression conditions. Our
sm all g rain crops have been v ery satis­
factory, although th e freeze tw o or
th re e w eeks ago w ill cause a consider­
able am ount of soft corn. Our pastu re
land has come back in an astonishing
m anner, and a plentiful supply of pas­
tu re is available.
N aturally, our farm ers are feeling
v ery good. Prices for th e ir products
are providing revenue to m ake it pos­
sible for them to pay th e ir operating

expenses, and liquidate a su bstantial
portion of accum ulated debts. H ow ­
ever, it w ill tak e an o th er good season
or tw o before our farm ers are out of
th e woods, because accum ulated debts
over th e p ast ten or tw elve y ears can­
not be liquidated in one season, al­
though a nu m b er of our farm ers and
stockm en w ill be in com fortable cir­
cum stances at th e end of th e c u rren t
season.
The general ag ricu ltu ral p icture
looks good. It has been v ery dry for
th e p ast six ty days, b u t we have a
reserv e supply of m oisture in the
ground and unless we go back into
an o th er d ro u g h t period, we should
have a good crop season n ex t year.
The g reatest difficulty is th a t of
securing adequate help to get th e w ork
done. T his w ill probably cause a large
n um ber of our farm ers and stockm en
to re stric t operations both in farm ing
and livestock to a point th ey can take
care of them selves w ith o u t depending
on hired help. T he d raft is calling
so m any of our young m en th a t it
looks like th e old m en, w om en and
children are going to have to do the
w ork for th e duration.
R etail business in our com m unity
has been v ery good since indications
of a good crop season w ere in sight.
H ow ever, we are not v ery optim istic
about th is continuing m uch after the
first of th e year, because operations
are going to be v ery restricted regard-

13

"There Is No Place Like Nebraska"
less of w h a t kind of season w e have
th e n e x t year. W e are in a w ar, and
alth o u g h a large n u m b er of our people
do not y et realize th at, we believe th ey
w ill realize it before an o th e r season
is out. W e are recom m ending to all
our people th a t th e y keep th is in m ind
in m aking plans and com m itm ents
th a t m ight en d an g er th e ir business
later on. W e w a n t o u r te rrito ry to
produce th e m axim um w ith o u t tak in g
undue chances th a t m ight have an
adverse effect on th e soundness of
th e ir business.

"Best in Ten Years"
C. V. EVANS

help. H ow ever, not a w hole lot of
com plaint, as th ey know th e w ar m ust
be won, b u t also feel th a t to do this
g rain and m eat will be needed. P e r­
sonally, I feel th a t th e farm help
should be given som e consideration
as th e arm y m ust be fu rn ish ed w ith
food. I feel th is w ay even th o u g h we
have two sons w ith th e ra n k of Cap­
tain s in th e arm y. H ow ever, w e are
not in position to know all about
th in g s and hope those in charge are
doing the rig h t th in g s and w ill con­
tin u e to do them .
Fall-sow n w h eat is in excellent con­
dition, and we have am ple m oisture
so th e ag ricu ltu ral p icture from th a t
stan d point looks v ery good.

usual as th ey have to com pete w ith
th e local and neighboring governm ent
projects w here laborers can get m uch
h igher w ages th a n th e farm ers can
afford to pay.

"Business to Be Excellent"
C. J. MORTENSEN
President
Nebraska State Bank, O rd

B usiness is bound to be excellent,
since we have a fair corn crop w hich
w ill go 20 bushels to th e acre on the
dry farm ing land, and around 60 b u sh ­
els to th e acre in th e irrig ated section.
It is th e best corn crop in the last nine
years, and w ill probably am ount to

C ash ie r
Citizens State Bank, Arapahoe

T he effects of w ar are beginning to
be noticed in th is com m unity, b u t th e
crops are th e best in te n y ears and th e
farm ers are feeling good. T here should
be an in crease in feeding d u rin g th e
n ex t few m o n th s and, of course, th e
job of h a rv e stin g w ill be m uch larg er
th a n w e have h ad for som e tim e.
Loans in th e b an k are going down, b u t
o u r incom e seem s to be holding steady,
alth o u g h prospects are for a decrease
in th is also.

"Banking Is Very Good"
E. H. CHITTENDEN
C a sh ie r
Farmers Bank of Clatonia

Most lines of b u siness th a t can p ro ­
cure goods to sell are doing all rig h t,
but, as is th e case everyw here, so m any
th in g s are off th e m arket. B anking is
v ery good and we are k ep t busy, as in
addition to b an k w o rk we are selling
g ov ern m en t bonds, looking a fte r hom e
defense and o th er w ar activities, all
of w hich w e are glad to do.
W e have a good all ro u n d crop, th e
best crop of corn we have h ad for ten
years, b u t th e cribs w ill hold it on
account of th e sm all acreage caused by
th e AAA p ro g ram forced on o u r fa rm ­
ers, m ost of w hom w ould have had
double th e acreage if th e y could have
farm ed as th e y desired, and w ould
have had few er obnoxious w eeds, and
w ould have h ad corn to help tide th em
over for y ears th a t crops are n o t so
good.
T he farm ers are feeling v ery good
as fa r as crops are concerned and w ith
fair prices. H ow ever, th e y do not
feel so good about th e fu tu re, as m any
w ill have to cu rtail th e ir operations
on account of th e sh o rtag e of farm

N eb rask a farm s have p len ty of corn to feed p len ty of c attle, and they are going to feed
these c a ttle u n til th ey are fa t

"Lot of Money Coming In"
J. L. WITTERS
C ashie r
Scottsbluff National Bank

B usiness has been exceptionally
good here all fall and th e prospects
are th a t it w ill be du rin g th e w in ter
m onths. P ractically all th e farm ers
are gettin g good yields from th e ir
crops, prices are good and th ere should
be a lot of m oney come in w hen th ey
are m arketed.
T his valley raises a lot of potatoes,
beans, sugar beets and alfalfa. Most
of th e potatoes are being held for a
later m arket, also some of th e beans.
The sugar beet h arv est has sta rte d and
it is a little early to tell how th e y will
yield, b u t th e prospects are good. The
biggest handicap th ey have is a sh o rt­
age of farm labor and th e h a rv e st w ill
probably tak e m uch longer th a n usual.
T he costs are also m uch h igher th a n

m ore in the aggregate th a n the total
corn raised in all those years. Our
farm ers are feeling good, b u t of course
are sh o rt of help, w hich w ill slow up
th e corn picking. T here is a large
supply of hogs on h and and th e feed
lots are well stocked, or w ill be w ith in
a few weeks.
I th in k th a t banks should not take
the PCA com petition too seriously, b u t
w ork along w ith farm ers and help
th em w ith th e problem s of ru n n in g
th e ir business. In the last 90 days our
loans have increased 43 per cent,
m ostly for livestock feeders. Our loans
stan d now at 61 p er cent of deposits.

"Never

More

Vice President
Continental National Bank, Lincoln

W ith th e exception of a v ery sm all
area in and around th e cen tral section
of N ebraska, general ag ricu ltu ral conN orthw estern Banker


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Federal Reserve Bank of St. Louis

Favorable"

J. O. PECK

N ovem ber 19^2

14

"

There Is No Place Like Nebraska"

ditions have n ev er been m ore fav o r­
able th a n at th e p re se n t tim e. T his
year th e farm ers are beginning quite
early to pick a fine crop of corn. T heir
reason for s ta rtin g th e ir picking so
soon has been b ro u g h t on chiefly on
account of th e shortage of labor due
to m any boys being d rafted into th e
arm ed services. W ith all types of
livestock prices being so favorable one
can easily u n d e rsta n d w hy those con­
nected w ith ag ricu ltu re feel so elated,
and alm ost w ith o u t exception, th e pro­
ceeds from th e sale of livestock and
o th er farm com m odities are being used
to reduce farm indebtedness. This
n atu ra lly b rings about a h ealth y con­
dition in th e com m unity; how ever, at
th e sam e tim e th is condition reduces
income of banks and causes th e banks
over th e state considerable w o rry as
to how th is reduced incom e m ight be
replaced from some o th er source of
revenue.
In th e sandhill co u n try m any of
the ran ch ers are reducing th e ir herds
to a point w hereby it will be possible

now stationed. M any of the officers
occupy hom es outside of th e Base, and
w hile this does not cause any shortage
of desirable p ro p erties available for
civilian use, it does b ring about a
condition w hereby m ost all of our de­
sirable hom es are rented, and we do
not notice any p articu lar m ovem ent
from th is area by our people to other
defense areas w here high wages are
being paid.
The m oisture condition th ro u g h o u t
the state is v ery favorable and the
fall w heat has been planted on tim e
and looks fine. One of the pleasant
su rp rises w hich one cannot help b ut
notice w hile driv in g over the state
is th e fine w ay in w hich p astu res have
come back after so m any years of
droughts. The farm ers are gradually
increasing th e ir livestock to a point
w here m any sections of th e state are
fully reh ab ilitated w ith livestock. I
w ould say th a t general conditions in
th is state are above norm al b u t the
tren d of fu tu re conditions will depend
en tirely on w ar developm ents.

cern. As to fu tu re prospects, it w ould
appear th a t crop and price conditions
have tak en the background as m uch de­
pends on how m any farm boys w ill
be tak en before n ex t May. As to th e
ag ricu ltu ral picture, it is now th e best
in y ears w ith fu tu re prospects sum m ed
up to
f “if, w hen and how m uch.”

"Business Exceptionally
G ood"
J. G. EDLOFF
Stephens

C ash ie r
National Bank,

Fremont

B usiness is exceptionally good now,
and prospects for th e fu tu re are ju st
as bright. We have had one of th e
best crop y ears in th is section, if not
TH E best, experienced in m any, m any
years. Our farm ers are feeling fine,
except for the shortage of labor, and
some w o rry over ceiling prices. Our
farm ers are gettin g out of debt. E very
effort w ill be m ade to h arv est a bum p­
er corn crop, w hich w hen done will
p u t farm ers in excellent condition.
T here is plen ty of feed for livestock,
and the fall w heat here looks fine.

"Small Grain Crop Satis­
factory"
l . W. TITUS
Vice President and C ash ie r
First National Bank, Holdrege

P orkers like these, w ith th e ir noses in the trough, gladden the h e a rt of every
farm er, especially when the trough is fu ll of feed, and there is p le n ty more
to keep it full

for them to care for th e ir livestock
w ith o u t too m uch trouble. T his re ­
duction is d istu rb in g and th e shortage
of beef is bound to becom e m ore acute
if th e practice is followed th ro u g h o u t
the grazing countries.
Our principal in d u stry in th is state
being agriculture, and conditions being
so favorable to th is in d u stry , business
is considerably above norm al. In our
im m ediate te rrito ry , business activity
has been accelerated on account of th e
fact th a t Lincoln has im m ediately ad­
jacen t to it a large A ir Base w here
th ere are several th o u san d soldiers
N orthw estern B anker

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

N ovem ber 19^2

"Farmers Pleased With
Prices"
BEN B. McNAIR
Vice President and C ash ie r
Columbus Bank, Columbus

W e have th e best corn crop in sev­
eral y ears and th e farm ers are m ore
th a n pleased w ith th e prices th ey are
receiving for all stock and com m od­
ities.
H ow ever, th e cu rtailm en t of some of
th e necessities in th e farm in g line
seem s to be th e m ost im m ediate con­

The sm all g rain crop in this section
of th e co untry w as v ery satisfactory.
Believe we had b etter th an average
w heat crop and v ery good oats. The
farm ers are v ery well satisfied w ith
this crop. Our corn crop is b e tte r th an
average, b ut possibly 20 per cent of
it has been h u rt by the freeze and
although we are going to get a very
good yield, th ere will be considerable
soft corn in it.
The m ain question confronting the
farm ers at th is tim e is w h eth er or
not to p u rchase cattle at th e presen t
prices to w hich th ey m ay feed this soft
corn. T hey have th e feeling, how ­
ever, th a t prices will rem ain satis­
factory for th e du ratio n of th e w ar,
regardless of price fixing and w hat
not, and it is probable th a t quite a
few cattle w ill be fed in th is locality.
W e feel th a t for th e benefit of the
farm ers, th ey should be encouraged
to feed some b u t not to get too far
from home, as th ere w ill undoubtedly
be a reaction to these prices w hen
th e presen t situ atio n is over.
(T u rn to page 27, please)

15

Bankers Discuss Current Financial
Problems at Iowa Convention
Highlights of the Fifty-sixth Annual Meeting Held Last Month in Des Moines
t . d o n h o w e , vice
p resid en t of th e C entral N a­
tional B ank and T ru s t Com pany
of Des M oines and re tirin g p resid en t of
th e Iow a B ankers A ssociation, is to
be co n g ratu lated on finishing a very
fine y e a r d u rin g v ery difficult tim es.
In his a n n u al address Mr. Donhowe
pointed out th a t b an k custom ers in ­
stead of leaving th e ir m oney on de­
posits should use it to p u rch ase w ar
bonds and he expressed his view s on
th is subject by saying:

A

rthur

“F ar too great a p ercentage of the
govern m en t debt can easily find its
w ay too soon into b ank ing in stitu tion s.
Bank deposits are in creasing rapidly.
In order to help avoid the evils of in ­
flation it m ight he w ell th at w e had
no furth er in crease in total deposits
and th at w e from n ow on encourage
our cu stom ers to buy W ar Savings
B onds in place of in creasin g th eir de­
posit accounts w ith u s.”

The election of A. B. A. officers in ­
cluded th e following: E xecu tiv e Coun­
cilm an, V P. C ullen, executive vice
p resid en t N ational B ank of B u rlin g ­
ton; no m in atin g com m itteem an, V.
W. Johnson, p resid en t F irs t N ational
B ank, Cedar Falls; a lte rn a te n o m in at­
in g com m itteem an, R. O. B yerrum ,
executive vice p resid en t F irs t T ru st
& Savings Bank, D avenport, vice

AT T H E IOW A CON VEN TION —R ead­
ing from le ft to rig h t, 1— R. H. Griffin,
president Odebolt S ta te B an k ; and Bob
Goethe, p resident Charles E. W alters Com­
pany, Omaha.
2—
Robert J. Tank, cashier C entral T ru st
& Savings B ank, E ld rid g e; R. S. K irkpat­
rick, president W est L ib e rty S ta te B an k ;
Henry Hansen, presid en t L ib e rty T ru st &
Savings B ank, D u ra n t; and Arnold M.
Sindt, cashier W alc o tt T ru st & Savings
Bank.
3—
H. Lee Huston, cashier Columbus
N ational B ank, Columbus Ju n c tio n ; R. J.
McCleary, vice p resid en t and cashier Se­
cu rity S tate B ank, K eokuk; G. H. Geerdes,
president Peoples S avings B ank, Wellsburg; Albert H. Meyer, p resid en t F irs t N a ­
tional B ank, P au llin a ; E. F. Fitzgerald,
cashier S tate Savings B ank, H o rn ick ; and
E. T. Peterson, executive vice p resid en t
P rim ghar Savings B ank.

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Federal Reserve Bank of St. Louis

16
presid en t national b ank division, A.
G. Sam, p resid en t F irs t N ational Bank,
Sioux City; vice presid en t savings
bank division, Clay W. Stafford, p resi­
dent Ames T ru st & Savings Bank,
Ames; vice p resid en t state b ank di­
vision, Boyd F. Jordan, assistan t cash­
ier M uscatine B ank & T ru st Company,
M uscatine; vice p resid en t tru s t divi­
sion, George F. M iller, vice presid en t
and tru s t officer M erchants N ational
Bank, Cedar Rapids.
A ttendance a t th e jo in t d in n er and
an n u al m eeting of th e Iow a Associa­
tion of B ank A uditors and Com ptrol­
lers and th e Iow a Ju n io r B ankers As­
sociation fa r exceeded expectations,
w ith m ore th a n 200 seeking a place at
tables set for only 155. B ut everyone
w as eventually supplied w ith food and
th e program w en t off w ith snap and
precision. New officers of Iow a J u n ­
ior B ankers are A lvin R enass, p resi­
dent, auditor, D ecorah S tate Bank; R.
G. L exvold, vice president, assistan t
cashier, F a rm e rs T ru st & Savings
Bank, Spencer, and L. A. R odenbaugh,
Jr., secretary, a ssistan t cashier, Iowa
State Bank, Des Moines.
The secretary of Iow a B ank A udi­
tors rep o rted a m em bership of 64 d u r­
ing the p ast year, w ith th e q u arterly
m eetings of th e organization well a t­
tended. C. R. Colton, cashier of th e
F idelity Savings Bank, O ttum w a, w as
nam ed president, to succeed E. H.
K etelsen, D avenport B ank & T ru st
Company. E. B. W ilkinson, Iow a City,
w as elected vice president, and Don C.
W itt, a ssistan t cashier, F irs t N ational
Bank, Oelwein, becom es secretary and
treasu rer.
An in terestin g talk on th e loan v al­
ue of chattel m ortgages w as given by
John F. O’N eill, cashier of th e F irs t
T ru st & Savings Bank, A rm strong.
He called ch attel or b a rn y a rd loans
am ong the best in any bank, and said
AT TH E IOW A CON VEN TION —R ead­
ing from le ft to rig h t, 1— G-. L. Hill, cash­
ier Lisbon B ank & T ru st Company; J. S.
Zdychnec, cashier Randolph S ta te B ank;
John Carville, cashier M echanicsville T rust
& Savings B an k ; Charles E. W atts, cashier
Commercial S ta te B ank, Pocahontas.
2—
Herbert L. Horton, president Des
Moines C learing House A ssociation, and
p resid en t Iowa-Des Moines N ational B ank;
M iss Helen K. Collins, The S tate B ank,
P o rt Dodge; and M arvin R. Selden, vice
p resident M erchants N atio nal B ank, CedarRapids.
3—
John McWhirter, assistan t cashier
S ta te B ank of A llison; and L. H. Jurgemeyer, Iow a B ank E xam iner, W averly.
4—
P. G. Folvay, cashier B enton County
Savings B ank, N orw ay; M. C. Erusha,
cashier F arm ers S avings B ank, W alford;
and C. H. Barron, cashier S tate B ank of
V inton.

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Federal Reserve Bank of St. Louis

17
th a t over a period of y ears such loans
have been collectible a t 2 xk to 1 as
com pared to o th e r typ es of loans.
T hey are sound, liquid an d save a
sm all loss ratio and co n trib u te to th e
w elfare of th e com m unity, he said.
W hen th e Iow a bank ers, w ho have
been active in b an k in g in th e state for
50 y ears or m ore, w ere called to tak e
a bow a t th e a n n u al b an q u et th e fol­
low ing fo u r m en w ho have been in
business 50 y ears or longer, responded.
T hey included th ese w ell know n and
successful gentlem en: Guy M. B utts,
p resid en t E x change S tate Bank, W es­
ley (58 y ears of b an k in g ); G. O. Vantie veer, cashier S tate B ank of W averly (56 y ears of b an k in g ); R. C. Car­
penter, p resid en t State B ank of F a y ­
ette (55 y ears of b an k in g ); and George
W. R ichter, vice p resid en t C apital
City S tate B ank, Des M oines (51 y ears
of b an k in g ).
Incidentally, George R ich ter w as
b o rn on th e so u th w est co rn er of E a st
5th and L ocust stre e ts w h ere th e Cap­
ital City S tate B ank is now located.
G eorge’s fa th e r ra n a g rocery store
on th e co rn er before th e b an k w as
built. George sta rte d sw eeping out th e
b an k a t 17 y ears of age.
F . R. De Con, cashier of th e F irs t
N ational B ank of W oodbine, placed
th e nam e of B. A. Gronstal, p resid en t
of th e Council Bluffs Savings Bank, in
n om ination as p resid en t of th e Iow a
B an k ers A ssociation.
Mr. De Cou
told how Mr. G ronstal began in th e
b an k in g business 37 y ears ago a t Esth erv ille and th e n w e n t from th e re to
S p irit L ake and th e n w ith th e S tate
B anking D ep artm en t for fo u r years,
(T u rn to page 55, please)

AT T H E IOW A CON VEN TION —R ead­
ing from le ft to rig h t, 1—Russell Daniel,
U nited S tates Secret Service, O m aha; June
Masterson, F arm ers Savings B ank, W rig h t;
and A. T. Donhowe, im m ediate p a st p resi­
dent Iow a B ankers A ssociation, and vice
p resident C entral N atio n al B ank, Des
Moines.
2—
Paul Groszkruger, p resid en t C itizens
N atio n al B ank, Belle P la in e ; R. L. Jipson,
cashier C entral S ta te B ank & T ru st Com­
pany, E lk ad er; and R. A. Sweet, cashier
S tory C ounty S ta te B ank, S to ry City.
3—
W alter W. Head, p resid en t G eneral
A m erican L ife In su ran ce Company, St.
L ouis; L. B. Cox, im m ediate p a st p resid en t
Iow a Ju n io r B ankers A ssociation, and as­
s ista n t cashier F irs t S ta te B ank, B elm ond;
and E. H. Ketelsen, im m ediate p a st p resi­
dent Iow a A ssociation of B ank A uditors
and Com ptrollers, and au d ito r D avenport
B ank & T ru st Company.
4—
J. F. Schafer, cashier F irs t S tate
B ank, Coon R apids; W. Cr. Jackson, cashier
E arlham Savings B an k ; and R. H. Ma­
loney, cashier Jefferson S ta te B ank.

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Federal Reserve Bank of St. Louis

V(thd

Contractin NX/ritin3

Made Through Correspondence?
A

N IOW A banker ow ned certain
real estate in a city in th a t state
w hich a b u tted on a stre e t th a t
w as m ade into a viad u ct over some
n earb y railro ad tracks. The co n stru c­
tion of th e viad u ct p e rm an en tly in te r­
fered in a su b stan tial w ay w ith th e ac­
cess to th e b a n k e r’s property. Could
he req u ire th a t he be com pensated for
such interference?
Yes. An ab utting property ow n er’s
easem en t or right-of-w ay is “right of
property” protected by the p rovision
of th e Iow a C onstitution th at private
property shall not be taken for public
u se w ith ou t .just com pensation.
W right and N u ttall executed for a
valuable consideration a prom issory
note in N ebraska ru n n in g to F arrell,
containing th e w ords “I prom ise to
pay,” ra th e r th a n “W e prom ise to
pay,” or w ords of sim ilar tenor. W ere
th e m ak ers jo in tly and severally lia­
ble thereon?
Yes. W here an in stru m en t containin g the w ords “I prom ise to p ay” is
signed by tw o or m ore p ersons th ey
are deem ed to be join tly and severally
liable thereon under N ebraska statu ­
tory law .
Certain m oney belonging to G rant
w as w rongfully used by W atson in
discharging a debt of W atson to Rob­
erts in M innesota. R oberts had no
notice of th e w rong. Could G rant re ­
cover th e m oney from R oberts?
No. W here a claim ant’s m oney is
w ro n gfu lly used in the discharge of a
debt of the w rongdoer, the claim ant is
not en titled to recover h is m oney from
the creditor if th e creditor had no no­
tice of the w rong, sin ce the creditor is
then in the p osition of a bona fide pur­
chaser.
Mason died in South Dakota leaving
a w ill directin g th e tru ste e to pay to
his w idow d u rin g h e r life “all ren ts,
dividends and p rofits” received from
the estate. An ex tra o rd in a ry stock
dividend w as paid on certain sh ares

N orthw estern B anker

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Federal Reserve Bank of St. Louis

N ovem ber 19^2

These and Other Timely Legal
Questions Are Answered

By the
LEG A L D EPA RTM EN T

of stock in the estate. Should such
e x tra o rd in ary stock dividend go to the
life beneficiary?
No. In a recent decision in v o lv in g
su bstan tially sim ilar facts the South
Dakota Suprem e Court held that, in
the case of a w ill directing a tru stee to
pay to the testa to r’s w id ow during her
life “all rents, divid en ds and profits,”
the use of the w ord “d ivid en ds” w as
not sufficient to d isclose an in tention
th at an extraordinary stock dividend
should go to th e life beneficiary.
Redmond leased certain farm lands

in N orth D akota from a b an k er in th a t
state. T here w as a stream flowing
th ro u g h th e p ro p erty w hich w as pol­
luted by sewage em ptied th erein by an
in d u strial plant. The pollution oc­
cu rred before Redm ond leased the
land. Could he recover dam ages from
th e in d u stry for th e pollution?
No. R edm ond rented the land as it
existed at the tim e the lease w as en ­
tered into and w ith the handicap im ­
posed by the polluted stream . H e
could not recover dam ages u n less his
leaseh old becam e im paired by an in ­
crease in the pollution, w hich w as not
the case here.
Frandorf, through correspondence,

agreed to sell certain N ebraska real
estate to a b an k er there. The m eeting
of m inds w as accom plished by such
correspondence, w hich consisted of
several letters, and no single w ritte n
in stru m e n t em bodying th e agreem ent
of th e p arties w as en tered into. W as
it necessary th a t such single w ritte n
in stru m e n t be executed?

No. A valid contract in w ritin g m ay
be m ade by correspondence and it is
not necessary that there shall be a
sin g le paper signed by p arties contain­
ing all of the con d itions of the con­
tract.
M cCarthy m ortgaged a M ichigan
farm to Cox as secu rity for a $5,000
note. Cox tra n sfe rre d the note to
P etrie and th e re a fter executed an as­
signm ent of th e m ortgage to Brown.
W as such assignm ent valid?
No. The right to a m ortgage given
to secure a note p asses by a tran sfer
of the note, so th at the assig n m en t of
the m ortgage by the m ortgagee to one
after he had endorsed the m ortgage
note to an oth er is a n ullity.
A M ichigan city sought to subject
the lands of a cem etery association
used for cem etery purposes to a lien
for a special assessm ent for street im ­
p rovem ent and to sell such lands to
satisfy such assessm ent. Could it do
so?
No. In M ichigan, as w ell as m any
other states, the lands of a cem etery
association used for cem etery purposes
cannot be subjected to a lien for a sp e­
cial a ssessm en t for street im prove­
m ent and cannot be sold to satisfy
such an a ssessm en t.
M axw ell, a M innesota banker, had
certain bonds in th a t state w hich he
w as induced to tra n sfe r to Sm ith
th ro u g h certain frau d u len t rep resen ­
tatio n s by Sm ith. As long as the
bonds w ere in S m ith’s hands did he
hold them as tru ste e for Maxwell?
Yes. W here an ow ner of property
w ho tran sfers it is induced to do so
by the fraud, duress or undue infiuencs of the transferee, the transferee
holds the property upon a con stru ctive
tru st for the transferor.
Suppose that in the preceding ques­
tion Sm ith had sold th e bonds and had
th e proceeds th ereo f in his possession.
(T u rn to page 50, please)

19

N orthw estern Banker

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

N ovem ber 19^2

20

How O ur Bank Is Meeting

Government Competition
A Minnesota Banker Found the Solution About Ten Years Ago,
and It Makes Money for His Bank

M

ANY ru ra l b an k ers have ex­
pressed th e ir concern over th e
ever increasing governm ental
com petition, p a rtic u la rly from local
Prod u ctio n C redit A ssociations. A suc­
cessful solution to th e P.C.A. com peti­
tion is to establish y o u r own A gricul­
tu ra l C redit A ssociation w hich w ill
have th e sam e discounting facilities
w ith th e F ed eral In term ed iate C redit
Bank. T he In term ed iate C redit B ank
is also th e b an k of discount for th e lo­
cal P roduction C redit A ssociations. W e
believe th a t such an a rra n g e m en t has
an advantage over th e Production
C redit A ssociations because th e b o r­
row er is not req u ired to purchase
stock in th e association, as is th e case
in th e P.C.A., and you can give b a n k ­
ing service th ro u g h y o u r bank, a very
valuable asset, w hich th e P.C.A. can­
not extend a t th e p re se n t tim e. We
organized an A g ricu ltu ral Credit Asso­
ciation as an affiliate to th is b an k in
1931. The corporation conform ed w ith
th e Act of C ongress w hich created th e
tw elve In term ed iate C redit B anks, one
in each F ed eral R eserve district.
T his corporation, know n as the
Sw ift C ounty A g ricu ltu ral C redit Asso­
ciation, has a paid in capital stock of
$10,000, th e stock being held p ro p o r­
tio n ately by th e stockholders of Sw ift
C ounty Bank. The officers of th e bank
are th e officers of th e C redit Associa­
tion and th e business of th e Credit
A ssociation is carried on in th e b a n k ­
ing house by th e em ployes of th e bank,
th ere b y elim inating office and equip­
m en t overhead, and th e clerical cost is
held to a low m inim um figure. The
C redit A ssociation is allow ed a m axi­
m um discount w ith th e In term ed iate
Credit B ank of eight tim es its paid in
capital and surplus. W e have in ­
creased our capital a t th e p re se n t tim e
to $14,000 th ereb y increasing our dis­
counting lim its.
W e have operated u n d e r th is a r­
ran g em en t for nin e years, and our
officers have agreed th a t th e y w ould
not o perate a ru ra l b an k w ith o u t an
A gricu ltu ral C redit A ssociation w ith
discounting facilities w ith th e InterN orthw estern B anker

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

N ovem ber Î942

By Oluf Gandrud
President
Sw ift C ou n ty Bank
Benson, Minnesota

OLUF GANDRUD

m ediate C redit B ank as an affiliate.
T h at is a broad statem ent, so we will
en u m erate some of the advantages and
briefly discuss th e ir practical applica­
tion.
F irst, it affords a m eans of liquida­
tio n of a g ricu ltu ral loans in y o u r bank,
if such liquidation should be desired
because of declining deposits due to
crop failures or o th er causes. D uring
th e depth of th e depression and b ank
panic of 1932 and 1933 w hich culm i­
n ated in a national b ank holiday, we
found th is a rran g em en t both conven­
ien t and profitable, and w e w ere in
position to take care of th e credit
needs of deserving borrow ers in the
face of declining b ank deposits.
Second, because we can give th e
“loan ra te sh o ppers” th e low est in te r­
est ra te offered by an y o th er com pet­
ing agency and w hich rate is a t the
p re se n t tim e 4% p er cent. F rom the

4% p er cent gross rate, we pay th e
Federal In term ed iate C redit B ank IV2
p er cent, leaving a n et in te re st re tu rn
of 3 p er cent. In addition to th e in terest
derived from th e loan, we m ay and are
m aking an adequate service charge for
inspecting th e loan, a b stract fees, filing
fees, and clerical w ork in m aking the
loan. The said 4% p er cent in terest
ra te is th e sam e as th e c u rre n t rate
charged by th e P.C.A. Besides com­
peting w ith them on th e rate, we have,
as before stated, a fu rth e r advantage
to offer th e borrow er, nam ely th a t no
capital stock p u rchase is required. W e
can give th e borrow ers a com plete
banking service w hich w ill include ex­
tending sm all incidental loans for h a r­
vesting expenses, ta x paym ents, in ­
surance prem ium s, and doctor and hos­
p ital expenses. T his credit can be ex­
tended safely because we have control
of th e bo rro w ers’ secu rity th ro u g h the
m ortgage to our C redit Association.
To su b stan tiate th e foregoing claims,
we subm it to you th a t w e have no
P.C.A. located in any city or village
adjacent to our ow n city. A P.C.A.
w as form ed a t W illm ar, w hich is lo­
cated 30 m iles east of Benson and is
a city of 8,000 population and th e
county seat, b u t th is office w as discon­
tinued.
T he th ird reason, we believe, is of
equal im portance, being th a t it is a
m eans of gettin g a fair ra te of in terest
on loans in th e bank, because the loan
ra te shoppers can be tak en care of in
th e C redit A ssociation. The loaning
officer of th e C redit A ssociation, by ap ­
plying a little m erchandising tech ­
nique in extending loans such as keep­
ing th e secu rity req u irem en t high,
service charge adequate, etc., w ill have
no difficulty in placing 80 p er cent of
the loans in th e b an k at a fair in te r­
est rate, if he so desires. An actual
m erchandising experience m ight b et­
te r illu strate w h at we m ean. T he w rit­
er operated a grocery business (and
th e re is really w here you have com­
petition) before en terin g th e banking
business, and one day th e v ariety store
(T u rn to page 48, please)

21

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DES MOINES, IOW A
N orthw estern Banker


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Federal Reserve Bank of St. Louis

N ovem ber 19b2

News and V iews
O F T H E B A N K IN G

W O RLD

By Clifford DePuy

R

OLAND C. IR V IN E , vice p resid en t

of th e Chase N ational B ank of
N ew York, in a recen t le tte r to the
N orthw esten B anker said, “ I w a n t to
tell you th a t I th in k y o u r October edi­
tion of th e N or thw estern B anker is
a m ost in stru c tiv e one. You and y our
associates have gone to a g re a t deal
of tro u b le to assem ble th e view s of a
n um b er of b an k ers on th e subject of
m eeting th e w ar situation. I have
been extrem ely in te re ste d in read in g
some of th e com m ents.
“I ra th e r like th e suggestion of R.
M. De P uy, vice p resident, N o rth w est
S ecurity N ational Bank, B rookings,
South D akota, w ho says th a t officers
of b an k s m u st settle dow n and do
m ore w ork. I have th o u g h t for quite
a w hile a n u m b er of us have been
coasting along w ith p len ty of good
help. W e will now have to find out
w h e th e r we can do some of the th in g s
we depended on others to do.”
O. P. D ecker, vice p resid en t of th e
A m erican N ational B ank and T ru st
Com pany of Chicago, and Mrs. Deck­
er are th e p a re n ts of a d au g h ter born
recen tly at th e E v an sto n H ospital,
E vanston, Illinois. Mrs. D ecker is
th e d au g h ter of Mr. and Mrs. Oliver
P. T hom pson of Des Moines.
Mr.
D ecker is now in W ashington in th e
Control D ivision office of th e Com­
m anding G eneral Service of Supply
in th e W ar D epartm ent. He has been
g ran ted a tem p o rary leave of absence
by th e bank.
H arold P. K lein, a ssista n t vice p resi­

den t of th e Iowa-Des Moines N ational
B ank and T ru st Company, w as ch air­
m an of the executive com m ittee of th e
C om m unity Chest D rive w hich re c e n t­
ly raised $554,000, w hich am o u n t w as
$63,000 over th e quota of $491,000.
Mr. K lein and his associates received
m an y w ords of com m endation for th e
fine job w hich th e y did. H eading th e
W om en’s D ivision w as Mrs. R ichard
R ollins, w ife of R. R. R ollins, vice
presid en t of th e B ankers T ru st Com­
pany.
Dr. Sim eon E. L eland has been ap­
pointed ch airm an of th e board of the
F ed eral R eserve B ank of Chicago to
succeed F ran k J. L ew is, w ho resigned
and m oved to F lorida.

N orthw estern B anker

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

N ovem ber 19b2

AY. \ \ 7. W aym ack of Des Moines, w ho
w as form erly director, w as appointed
dep u ty ch airm an to succeed Dr. L e­
land.
The new ch airm an is head of the
Econom ics D epartm ent of th e U niver­
sity of Chicago and w as special as­
sista n t to th e S ecretary of the T reas­
u ry in 1934.

Chicago banks, belonging to the
C learing H ouse A ssociation, have an ­
nounced the discontinuation of “ex­
change ch arges” and it is expected
th a t this w ill cost th e Chicago banks
about a m illion dollars in revenue an ­
nually, based on th e ir figures for last
year.
F o r some tim e banks in New York
and certain o th er financial centers
have m ade no charge for th e collec­
tion of out-of-town item s. A t th e p res­
en t tim e th ere are about 2,700 banks
in th e U nited States know n as non-par
banks, w hich do not belong to th e F ed ­
eral R eserve System and w hich m ake
charges for collection of checks and
d rafts sent to them .
F. A. Irish, p resident of the F irst
N ational B ank & T ru st Com pany of
Fargo, N orth Dakota, sent th e N orth ­
w estern B anker a pictu re of th e front
p a rt of th e ir lobby, show ing some very
clever ad v ertisin g w hich th ey are do­
ing for the sale of w ar bonds. Mr.
Irish has received m any favorable
com m ents, not only for th is ad v ertis­
ing, b u t also for th e efforts th ey have
p u t forth in th e sale of bonds.

A com m ittee of b an k ers has been
appointed to w ork out w ith th e Office

of Price A dm inistration a satisfactory
plan for th e clearing of ration coupons
through the b anking system .

The com m ittee recognizes th a t a
greatly increased volum e of w ork will
be placed upon th e banks of th e coun­
try and contem plates the reim b u rse­
m en t of th e banks for th e cost of th e ir
services by th e Office of Price A dm in­
istration.
The m em bers of this com m ittee in ­
clude the following: R ow land R.
H u gh es, com ptroller of The N ational
City B ank of New York, chairm an;
W illiam D uncan, Jr., secretary of the
M innesota B ankers A ssociation, Min­
neapolis, M innesota; T. A llen Glenn,
Jr., presid en t of the Peoples N ational
Bank, N orristow n, P ennsylvania; A. J.
Gock, vice ch airm an of th e board,
B ank of A m erica N. T. & S. A., Los
Angeles, California; Y\7ilbur F. L aw son,
vice president, F irst N ational Bank,
Boston, M assachusetts; F ran k L. King,
com ptroller, C ontinental Illinois N a­
tional B ank & T ru st Company, Chi­
cago, Illinois; AYTIliam A. M cD onnell,
executive vice president, Comm ercial
N ational Bank, L ittle Rock, A rk an ­
sas, and ch airm an of th e ban k m an­
agem ent com m ission of th e A m erican
B ankers A ssociation.
The F in an cial A dvertisers A ssocia­
tion held a “lu lu ” of a “Convention-By-

M ail” to say n o thing of th e election
of its new officers, am ong w hom w ere
L ew T ow nsend, L ew is Gordon and
L ew ell L afferty occupying th e th ree
topm ost executive positions.
The Convention-By-M ail took the
place of th e reg u lar 27th an n u al con­
clave, w hich w as cancelled at the re ­
quest of th e Office of Defense T ran s­
portation.
The officers elected for th e ensuing
y ear are as follows:

Officers
P resident, L. E. T ow nsend, assistan t
vice president, B ank of A m erica, San
Francisco; first vice president, L ew is
F. Gordon, a ssistan t vice president,
Citizens & S outhern N ational Bank,
A tlanta; second vice president, J. L ew ­
ell Lafferty, F o rt W o rth N ational
Bank, F o rt W orth, Texas; th ird vice
president, D ale B row n, a ssistan t vice
president, The N ational City Bank,
Cleveland; tre a su re r, F red \YT. Mathison, assistan t vice president, N ational
Security Bank, Chicago.

Directors
M errill A nderson, M errill A nderson
Company, N ew Y ork City; P hilip Iv.
Barker, G ranite T ru st Company, Quin­
cy, M assachusetts; L eland C. Barry,

U nion

T ru st Company, P ittsb u rg h ,
(T u rn to page 49, please)

23

Visiting Bankers and Guests
are cordially invited to
use this hank as
Headquarters
during Nebraska Bankers Convention
November

11thand 12th

W e w ill be glad to talk o v e r y o u r
Live Stock and Financing Problem s

LIVE STOCK NATIONAL BANK
OMAHA
Resources Over $30,000,000.00
Member Federal Deposit Insurance Corporation

N orthw estern Banker

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

N ovem ber 19^2

24

45M Convention
Nebraska
Bankers
Association
Omaha, November 11-12
Headquarters

O. A. R IL E Y
President, N ebraska Bankers A ssociation

LONG about th re e o’clock on th e
aftern o o n of Tuesday, N ovem ­
b er 10, W illiam B. H ughes, sec­
re ta ry of th e N ebraska B ankers Asso­
ciation, w ill assem ble his charm ing
assistan ts on th e m ezzanine floor of
th e H otel F ontenelle, in Omaha, and
reg istra tio n w ill s ta rt for th e forty-fifth
ann u al convention of th a t organiza­
tion. The re g istra tio n desk w ill be
m ain tain ed h ere th ro u g h o u t th e days
of N ovem ber 11 and 12. All m eetings
of an y n a tu re w ill be held a t th e F o n ­
tenelle.
The sessions of th e convention w ill
begin at 1:30 p. m. on W ednesday, No­
vem ber 11—no m eeting on W ednesday
m orning, ju s t re g istra tio n and visiting.
The executive council of th e N ebraska
B an k ers A ssociation w ill hold its a n ­
nual business m eeting th e aftern o o n
of Tuesday, N ovem ber 10, followed by
th e an n u al council d in n er a t 6:15.
A gain on T h u rsd ay afternoon, No­
vem ber 12, im m ediately a fte r th e ad ­
jo u rn m e n t of th e gen eral convention,
an organization m eeting of th e new
executive council is called.
The A ssociation of P a st P resid en ts
of the N ebraska A ssociation w ill have

A

N orthw estern B anker

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

N ovem ber 19'r2

-

Hotel Fontenelle

The Program

its ann u al d in n er at 6:15 Tuesday eve­
ning, N ovem ber 10. A t 12:15 o’clock
noon on W ednesday, N ovem ber 11, a
luncheon w ill be held by th e F ifty
Year Club of th e N ebraska B ankers
Association, in th e Black M irror Room
of th e hotel.
Two com m ittee m eetings have been
scheduled for th e m orning of W ed­
nesday, N ovem ber 11. The resolutions
com m ittee and th e nom inating com­
m ittee will both hold prelim in ary ses­
sions at 10:30.
The com plete convention program ,
info rm ation on e n te rta in m e n t fea­
tures, and nam es of local com m ittees,
reads as follows:

2:15

3:00

3:45

Wednesday Afternoon,
November 11th
1:30 Call to order by P resid en t O. A.
Riley.
Invocation pronounced by Rev.
Stephen E. McGinley, Dean T rin ­
ity C athedral.
P atrio tic Songs.
Intro d u ctio n of M em bers of the
F ifty Y ear B ankers Club.
R em arks of th e P resident.
A ppointm ent of Com m ittees.
2:00 “P rogress of th e W ar P rogram

5:30

and Our R esponsibilities In I t ”
—M ajor G eneral F. E. Uhl, Com­
m anding Officer S eventh Service
Command.
“Econom ic and F inancial Com­
m e n t”—H. G. Leedy, P resident,
F ederal R eserve B ank of K ansas
City.
“T he W ealth of th e N ation”—
Dr. H. C. Filley, C hairm an,
R u ral Econom ics, College of
A griculture, Lincoln.
“P roduction C redit Subsidized
C om petition” — E. W. R ossiter,
P resident, B ank of H artington,
and E. E. Placek, P resident,
F irs t N ational Bank, W ahoo,
and J. M. Sorenson, V ice P resi­
dent, S tephens N ational Bank,
F rem ont.
Discussion.
Social H our, th e Mezzanine, H o­
tel Fontenelle.

Wednesday Evening,
November 11th
6:30 C onvention D inner, H otel F on­
tenelle.
Response, “W h at A bout Ger­
m an y ?”—Louis P. L ochner, L ast


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Federal Reserve Bank of St. Louis

26
Chief of B erlin B u reau Asso­
ciated Press.

Thursday Morning, November 12th
10:30 Call to o rd er by P re sid e n t O. A.
Riley.
P atrio tic Songs.
10:35 M eeting of M em bers of th e
A m erican B an k ers A ssociation
for election of ABA officers for
N ebraska. J. O. Peck, Vice P re s­
ident, ABA for N ebraska, p re ­
siding.
10:45 D iscussion of P roduction Credit
Subsidized Com petition.
11:00 R eport of R esolutions C om m it­
tee.
11:15 R eport of N om inating Commit-

tee and E lection of Officers.
11:30 “The Live Stock M arket”—E. A.
Kelloway, Secretary, O m a h a
Live Stock E xchange.
12:15 A djournm ent.
(A brief m eeting of th e E xecutive
Council on th e R ostrum im m ediately
a fte r adjournm ent.)
1:00 L uncheon for visiting wom en,
H otel F ontenelle, Black M irror
Room.

Entertainment
Wednesday, November 11th
12:15 L uncheon honoring th e F ifty
Year B ankers Club, in the Black
M irror Room, H otel Fontenelle.
5:30 Social H our, H otel Fontenelle.

6:30 C onvention D inner, H otel F o n te­
nelle.

Thursday, November 12th
1:00 Ladies Luncheon in Black M ir­
ro r Room, H otel Fontenelle.

General Committee on Arrange­
ments
J. A. C hangstrom , chairm an; F. W.
Thom as, E llsw o rth Moser, A. J. H allas,
L. Dale M atthew s, H. C. K arpf, L. H.
E a rh a rt, K enneth G. H arvey, R. H.
H all and C. F. W itt.

Reception Committee
A.
L. V ickery, chairm an; J. B. Owen,
R. E. K endall, P aul H ansen, K enneth
G. H arvey, U. S. B erry, J. F. Davis,
E. J. Seitz and Jam es H. Moore.

Entertainment Committee
A. L. Coad, chairm an; ^David F.
Davis, R. H. M allory, Jo h n M cCumber,
R. H. K roeger, O. P. Cordill, R. H.
H all and W. F. Ruzicka.

Hostess Committee
Mrs. A. L. Coad, chairm an; Mrs. J.
T. S tew art III, Mrs. A. J. H allas, Mrs.
V. B. Caldwell, Mrs. David F. Davis,
Mrs. O. P. Cordill, Mrs. R. H. Hall,
Mrs. A lvin E. Johnson, Mrs. C. F. W itt
and Mrs. K enneth G. H arvey.

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LINCOLN, NEBRASKA

Jo h n L auritzen, w ho has been em ­
ployed at th e W ashington County
B ank for th e p ast nine m onths, has
left th e B lair in stitu tio n to w ork at
th e F irs t N ational B ank in Omaha.
Jo h n has m ade m any friends du rin g
his stay in Blair, w ho w ish him well
in his new location.

To New Post
Miss C orrine H allstrom , w ho has
served so efficiently as th e clerk at
Cass County Selective Service Board,
P lattsm outh, has re tu rn e d to h er hom e
at Avoca w here she is to assist h er
father, E lm er H allstrom , c a s h i e r ,
F arm ers State Bank.
Mr. H allstrom has been up against
it in the b ank w ork since th e enlist­
m ent of his son, Bob, in th e coast
guard and th e w ork has been so heavy
th a t it w as necessary to have the
dau g h ter re tu rn hom e to tak e up th e
w ork.

New Secretary

GEORGE W . HOLMES.......................P resid e n t
P. R. EASTERDAY..Executive V ice P resid e n t

ERNEST U. GUENZEL............ A sst. Vice P res.

L. C. CHAPIN...............................V ice P resid e n t

CLIFFORD G. W ESTO N ....A ssistant C a sh ie r

STANLEY

MALY........................Vice P resid e n t

A. C. GLANDT......................................A ss is ta n t C a sh ie r

B. O. CAMPBELL.........................Vice P resid e n t

R. J. BECKER.......................................... A ssista n t C a sh ie r

HOWARD FREEMAN............................. C ash ie r
Member Federal Deposit Insurance Corporation

N orthw estern B anker

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

N ovem ber 1942

E d w ard M. Gallagher, O’Neill, p resi­
d en t of th e N o rtheast N ebraska B ank­
ers A ssociation, has announced th e ap­
p o intm ent of Dan H arris, assistant
cashier of th e F irs t N ational B ank of
Stanton, as secretary of th e Associa­
tion, filling th e vacancy m ade by th e
resignation of O. W. Gladen, assistan t
cashier of th e Delay N ational Bank,
Norfolk.
Mr. Gladen is now in th e arm ed
forces of th e U nited States.

27
good. Crops have been above average
and, of course, th e farm ers are feeling
fine. Prices are good, and th e farm ers
are realizing on th e value of th e ir
produce. N early everyone here seems
to be tak in g advantage of th e high
prices to get into good financial con­
dition, and n o t m ake some of th e m is­
takes th ey m ade in th e past.

NEBRASKA
NEW S

"Business Much Improved"
WM. B. H U G H E S
Secretary
Omaha

There Is No Place Like Nebraska
(C ontinued from page 14)

"Big C ro p — Short on Labor"
EDGAR McBRIDE
President
Com m ercia l Bank, Blue Hill

B usiness in th is v icin ity is th e best
it has been in th e p ast te n years, and
it looks like such w ould continue
d u rin g th is fall and w inter. W e had
a good w h eat crop and prospects are
for a b u m p er corn crop. N atu rally
th e farm ers are feeling v ery opti­
m istic. More of o u r farm ers are feed­
ing livestock, b u t th e re w ill be a
sho rtag e of labor, and if n o th in g is
done to defer fa rm e r boys u n til a fte r
th e corn picking, th e labor situ atio n
w ill be serious. T his section had been
h a rd h it by d ro u g h t for th e p ast eight
to te n years, w ith th e re su lt th a t
labor has d rifted to o th er places. Now,
w ith a large corn crop, and w ith su b ­
n o rm al labor to tak e care of it, it w ill
be a problem to get th e crop into
th e crib.

"Big Farm Purchasing Power"
F. J. C L E A R S
Vice President and C ash ie r
First National Bank, G r a n d Island

W e are glad to re p o rt th a t w e have
had a v e ry good crop year, in fact the
best in nine or ten years. H ad a v ery
good corn crop, a big w h eat h a rv e st
and o th er sm all g rain in proportion.
T his n a tu ra lly has endangered a v ery
good feeling in th e farm ers as it has
provided th em w ith a p u rch asin g
pow er w hich has been g reatly re ­
stricted for a n u m b er of years. The
fall w h e a t has gone into th e g round
in v ery good condition and am ple
m oisture for th is crop is here.
T he u n certain ty , how ever, as to
cattle prices has had a d e te rrin g ef­
fect on th e p u rch ase of feeders. P rices
d u rin g th e late su m m er w ere fairly
high, b u t m ore recen tly have fluctu­
ated in prospect of price ceilings. This
has ra th e r caused prospective feeders

to hesitate and has caused m ore or
less of a delay in purch asin g of these
cattle.
An un u su ally early frost in Sep­
tem ber has caused some soft corn in
th is vicinity w hich w ill ten d to in ­
crease th e feeding prospects here as
th e re is an abundance of hay and
fodder feed besides th e b um per corn
crop.
On th e o th er hand th e shortage of
farm labor is acute and has added
to th e fa rm e rs’ problem s here.
B usiness conditions in th e city in ­
dicate a v ery satisfacto ry increase
over a y ear ago. T his condition exists
g enerally and several of th e larg er
businesses indicate a v ery satisfactory
gain from a year ago w ith probably
about a 10 p er cent increase in th e cash
sales and a large change in th e charge
accounts on th e dow nw ard side. This
increase in m erchandise p u rchasing
no doubt is because of th e defense
p lan ts in th is area, coupled w ith a v ery
good crop condition.

"Farmers Are 'Cashing In'
G. W. SHAFER, JR.
C ash ie r
First S ta te Bank, Beaver C it y

Our te rrito ry has enjoyed its second
y ear of good crops and general p ro s­
perity. A n early, h ard freeze w ill
spoil some of th e late corn, b u t th ere
still w ill be a good crop. W e have had
a big increase in livestock th e last
few years and now th e farm er is able
to “cash in ” and th ere is a general
tre n d out of th e red. W in ter w heat
conditions are good. W e have our
labor problem s, a shortage and not
union, for w hich w e are grateful.

"G ood Financial Condition"
W. H. MUNGER
C ash ie r
First National Bank, North Platte

P rospects in th is locality for th e
rem ain d er of th e fall and w in ter are

A. E. DWEHUS
President
State Bank of Dannebrog

In a general w ay business is m uch
im proved over a year ago. Of course,
th e pinch w ill begin to be felt by th e
businessm en as the com m odities are
tak en from th e ir shelves w ith no re ­
placem ents, and I u n d erstan d th is is
happening rig h t now in several lines.
Crop conditions w ere v ery good th is
y ear and, in fact, this is th e first year
since 1933 th a t we have really had a
decent corn crop. The sm all grain
crops w ere also good and m ost of the
sm all g rain w as sealed and v ery little
of it reached th e open m ark et th ro u g h
th e reg u lar m ark etin g channels.
T he farm ers, of course, are m ore
optim istic th a n th ey have been for
several years, b u t th e farm labor situ ­
ation is beginning to be felt w ith
m ost of th e farm boys having been
d rafted and a goodly n um ber of th e
farm ers w ondering how th ey are going
to get th e ir corn picked. I u n d erstan d
th e local high school w ill be closed
for tw o w eeks to p erm it all th e boys
w ho are old enough to go out and
assist in h u sking th e fa rm e rs’ corn.
This, no doubt, w ill help some to solve
th e problem .
The increase in th e price of live­
stock and farm products is m aterially
reflected in our deposits, w hich have
increased 60 p er cent over and above
w h at th ey w ere a y ear ago. We are
encouraging th e farm ers to reduce
th e ir indebtedness m aterially so they
w ill be in a b e tte r position to carry
on w hen th e w ar is over and it is
gratify in g to learn th a t m ost of them
are cooperating w ith us v ery nicely in
th is program .

"Best in Years"
J. R. STEVENSON
C ash ie r
Farmers Bank, Nebraska C ity

C onditions here are th e best in m any
y ears—good w heat, w onderful alfalfa
and corn, and lots of good hogs, and
of course th is m akes th e farm ers real­
ly happy. T here should be lots of
m oney in hands of our farm ers, al­
though rig h t now it looks like th ey
w ill be th e only ones in Otoe county
w ho w ill have any.
N orthw estern Banker


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

N ovem ber 1942

28
•

"Business Above Normal"
H. LIVINGSTON
C ash ie r
First National Bank, Fairbury

R egarding business in our im m edi­
ate vicinity, w ill say th a t it is above
norm al, as you can see by th e deposits
of th e b anks in F airb u ry . Since last
y ear th e deposits have increased about
$1,500,000. This, of course, rep resen ts
m oney from farm ers, largely, as sal­
aries in th is county have n o t gone up
ow ing possibly to th e reason th a t we
do not have any defense projects. Our
deposits have been on a steady in­
crease.

/¿ ea d u d u ittfiM /sxu/
about the PROFITABLE
" P A Y C " (Pay -as-You-Check)

Checking Plan!

■The ’
PAYC' Plan is a det
m i t e step in the n g h
direction and our experi­
ence with it has been A-l.
We have opened approxi­
mately 400 new accounts
in a period of about 4,
months, with an average
opening balance in the
neighborhood of $150.00.
.... Most of our new ac­
counts under the 'PAY
system have been new customers."
*Name of bank on request

Recent " P A Y C " Installations
City N a tio n a l B an k
H astings, N ebraska

H astin gs N a tio n a l B ank
H astings, Nebraska

Sutton State B ank

N E B R A S K A

N E W S *

R egarding th e “fa rm e rs’ feeling” as
to th eir crops and to conditions, I
quote th e following: “In 1941 th ere
w ere 8,785 cows m ilked; in 1942 th ere
w ere 9,584 being m ilked, being an in ­
crease of 11 per cent—an incom e of
$550,000; 22 p er cent increase in produc­
tion of eggs for 1942, rep resen tin g a
value of $513,000. In 1941 th ere w ere
21,563 hogs in th is county and in 1942
th e re is a 39 p er cent increase, re p re ­
sen tin g incom e of $1,376,000. In 1941,
besides th e m ilk cows, th ere w ere
9,730 stock cattle, calves and cattle on
feed in th e county and in 1942 th ere is
a 14 p er cent increase, rep resen tin g an
incom e of $825,000. T he average w heat
production for 1942 w as 23 bushels per
acre, being th e larg est crop on record,
am o u nting to 1,360,000 bushels of
w h eat produced in Jefferson county on
about 60,000 acres. A bout one-half of
th is is stored on farm s u n d er govern­
m en t loans, th is to taling in cash
aro u n d $1,000,000. W e are going to
have probably th e best corn crop in
y ears on 75,000 acres. T his corn w ill
yield aro u n d 40 bushels p er acre and
w ith an 85 cent loan value w ill re p re ­
sen t over $2,000,000.”
F a rm ers in our vicinity are begin­
ning to w o rry about how th ey w ill get
th e ir corn crop h arv ested and are hop­
ing th a t som ething w ill be done to at
least alleviate th e situ atio n u n til after
th is harvest.
In reg ard to h arv estin g our corn
crop, w ill say th a t th e arm ed forces
are tak in g a large percentage of our
farm boys and th e re su lt is th a t a gross
sh are of th e corn crop w ill n ot be h a r­
v ested u n til C hristm as or after. The

Since

shortage of m anpow er on th e farm s
w as show n in h arv estin g th e w heat
crop. Men from our cities w en t into
th e fields to help th is situ atio n and
really did a good job b u t shucking corn
is a different proposition. T he socalled “w hite collared” help is n ot of
m uch use in th e corn field, as it takes
a m an h ardened to th is type of w ork to
effect a job of th is so rt w ith any effi­
ciency. W e find th a t statistics in our
county show th a t from one to seven
farm s in each precinct have n ot been
ren ted and w ill not be farm ed next
year, due to th e shortage of m anpow er
and this loss of m en is due to th e call
of our arm ed forces. W e believe if
some so rt of legislation could be for­
m ulated to keep m en on th e farm s, as
w ell as in th e service, it w ould benefit
all, as it w ill req u ire an enorm ous
am ount of m en to stay on th e farm s to
feed our arm ed forces.

Federal Land Bank Meeting
The F ed eral L and B ank directors,
of Omaha, w ere in C raw ford recently
to hold a school of in stru ctio n for the
directors of th e F ed eral Loan Associa­
tion in th a t city to teach them to ap ­
praise lands. L uncheon w as served
at th e S herrill Cafe.

Mrs. Jam es Logan of Red Oak, Iowa,
has tak en a position in th e F ederal
L and Bank, in Omaha, P riv ate Jam es
F. Logan being at th e induction sta ­
tion at F o rt Crook.

1 8 8 1

F . E. DAVENPORT & CO.
Has served th e B an k ers in rim elo c k , S a fe and V au lt I n sp e c tio n
■
W e are proud o f this record and o f our relations as the official
experts o f th e N ebraska and Iowa B ankers A ssociation s
■

Our 24-Hour C ontinuous Service Guarantees
You Im m ediate A ttention

4 sk a "U.5." representative for com­
plete information about the " P A Y C ”
plan, or write to —

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

OM AHA, NEBRASKA

N orthw estern B anker

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Federal Reserve Bank of St. Louis

N ovem ber Í 9Í 2

y

Y

Sutton, Nebraska

UNITED STATES CHECK BOOK CO.

"Y

Position in Omaha

Sutton, Nebraska

C ity State B an k

>

O M A H A

À

29

Cashier Resigns
H om er M eserve has resigned as
cash ier of th e B ank of L ushton, at
L ushton, w hich position he has filled
for th e p ast 24 years. He expects to
m ove his fam ily to W ichita, K ansas,
w h ere he w ill tak e up an o th er posi­
tion.

Local Banks in Scrap Drive
W eeping W ater b anks th re w th e ir
su p p o rt into th e scrap driv e w ith an
offer of th re e prizes to talin g $10 for
schools in the W eeping W ater area
th a t co n trib u te m ost to th e n a tio n ­
w ide scrap cam paign
P rizes w ere $5 for first place, $3 for
second and $2 for th ird .
O. C. H inds and F. J. Domingo, p re si­
dents of th e tw o local banks, visited
ru ra l schools to announce th e prizes
and to stir up en th u siasm in th e con­
te st

The offer of prizes came after th e
Cass County B ankers A ssociation
voted to help in th e salvage drive.
T he b an k ers held a d in n er a t th e
L au rel H otel and elected officers,
choosing th e following: P resident,
C harles Boedeker, M urray; vice p resi­
dent, C. V. W allick, W eeping W ater,
and secretary-treasurer, Carl Schneid­
er, P lattsm outh.

4-H Calves Sell Above Cost
One of th e biggest steps forw ard in
an ag ricu ltu re way, tak en in m any a
day, w as th e sale last m onth of fortyth re e head of baby beeves to 4-H boys
and girls by th e Saunders C ounty
B ankers Association.
T his A ssociation last year perform ed
a sim ilar service on a sm aller scale,
b u t th is year th ey have seen th e op­
p o rtu n ity to step up th e benefits and
have grasped it.

The ban k ers bought th e calves in
a n o rth e rn county in th is state and
th ey w ere sold at auction to th e h igh­
est bidder. The biddnig w as quite
sp irited to s ta rt w ith, b u t dropped off
tow ard th e last. More could have been
sold. The price ranged from $13.00 to
$18.00 a h u n d red and th e w eights from
250 to 440 pounds. The sale prices
w hen totaled w ere sufficient to cover
th e total cost to th e ban k ers and th ere
m ay be a sm all balance left over for
an o th er year.

Takes Charge of Bank
R. S. Wilfley, form erly of B eatrice
and F airb u ry , has tak en charge of the
Citizens State B ank of H addam , K an­
sas, w hich w as recently purchased by
a group of F a irb u ry men. L u th er
Bonham , F airb u ry , is president.

A dvertisem ent

"Roll of Honor" Banks
...N EBRA SKA ...
It is an honor to be listed among the HONOR RO LL BANKS. It indicates that the
bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital

T h e b a n k s lis te d on th is p a g e are so m e of N e b ra s k a ’s o u tsta n d in g “H o n o r R oll"
B an ks. B y ca refu l m a n a g em e n t a n d so u n d b a n k in g th e y h a ve a c h ie v e d th is
e n v ia b le p o sitio n . T h e se b a n k s w ill be e s p e c ia lly g la d to h a n d le a n y co llec tio n s,
sp e c ia l c r e d it re p o r ts or o th e r bu sin ess in th e ir c o m m u n itie s w h ic h y o u m a y
e n tru st to th em . C o rresp o n d en ce is in v ite d .

SURPLUS &
TOW N

BANK

C A P IT A L

O F F IC E R

_______ _____ Edgar McBride ____ ..... $ 25,000
Blue Hill______ ___ Commercial Bank ___
25,000
Bruning_______ ___ Bruning State B ank ______ __ ______Fred H. Bruning___
25,000
F ranklin______ ___ Franklin S tate B ank____________ _____ P. L. Slocum_______
....
200,000
Grand Island__ __ F irst N ational B ank ___________ __ ___F. J. Cleary________
32,000
___ J. R. Hoban________
Heartwell_____ ___ H eartw ell S tate Bank _______

P R O F IT S

$

28,725
32,000
32,665
556,000
35,839

500,000
Omaha N ational B ank _________ ______Ray R. Ridge______ ...... 2,000,000
Omaha
25,000
Ponca............ ...... ___ Bank of Dixon County .................. __ ___F. R. K ingsbury.......

855,000
2,379,729

50,000

162,113

30,000

38,700

25,000

25,348

Omaha

.......Live Stock N ational Bank ______ _____ Paul Hansen _______ ......

Stanton_______ ___ F irst N ational B ank __________ ........... H. D. Miller..........
Strom sburg.... . ___ Strom sburg B ank _____________ ............E. C. Nordlund_____
Trenton....... .......___ S tate Bank of T renton__________ ______ A. Thuman ________

N orthw estern Banker

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

27,000

N ovem ber 19b2

30

Municipal
and
General Bonds
★
S p ecia lists in N ebraska
M u n icip als

★

GREENWAY & CO.
Farnam Bldg.
OMAHA, NEBRASKA

IN W A R . . .
AS IN PEACE
The system of applying busi­
ness principles and organiza­
tion to the management of
farms for absentee owners, in­
augurated by us more than 12
years ago, is proving adequate
to the increased problems of
war-time farm ownership.

FARMERS
NATIONAL
COMPANY
388-396 Brandeis Theatre Bldg.,
Omaha, Nebraska
Full-Time Resident Managers
At 12 Iowa and Nebraska Points

F

U N ERA L services w ere held in
O m aha Sept. 29 for R. W are H all,
54, p resid en t of th e Omaha in vest­
m en t banking firm bearing his nam e
since 1925, w ho w as found dead a t his
home. He had been in ill health.
He had served as presid en t of the
N ebraska In v estm en t B ankers Asso­
ciation, w as an active m em ber of the
Om aha Cham ber of Commerce and
ch airm an of its m ilitary affairs com­
m ittee at th e tim e of his death.

The N ebraska B an k ers’ A ssociation
is credited by G. L. N oble of Chicago,
publisher of th e N ational 4-H Club
N ew s, w ith settin g th e pace for b an k ­
ers of th e nation in practical help to
4-H clubs.
The association, an article in th e c u r­
re n t issue of th e 4-H m agazine says,
gave paid-up subscriptions for th e 4-H
Club N ew s to 1,637 4-H club leaders in
N ebraska.

Before form ing his own investm ent
com pany, he w as a ssistan t tru s t officer
of th e form er P eters T ru st Company,
la te r vice presid en t of Jam es T. Wachob Company. In W orld W ar I he
served tw o y ears in th e 340th Field
A rtillery. He w as com m issioned a
lieutenant.

Am ong Om aha young w om en sw orn
in by th e W A V ES, as apprentice sea­
m en, w as Mrs. C onnie Larson, w ho
has been an em ploye of th e F ederal
L and B ank of Omaha. She has been
given a leave of absence by th e bank.
She w as to tra in at O klahom a A. and
M. College at Stillw ater.

He form ed Boy Scout Troop 32 and
for m any y ears w as scoutm aster, later
a m e rit badge counsellor. He w as a
h u n tin g and fishing en th usiast, and
his hobby w as collecting ra re books.

GREETINGS
TO THE

NEBRASKA BANKERS
ASSOCIATION

FARM MANAGEMENT
“From the Ground Up”

H. M. BYLLESBY and COMPANY
(Founded 1902)

BANKS

Bought and Sold

THE CHARLES E. WALTERS CO.
OM AHA. N EB R A S K A

N orthw estern B anker

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

N ovem ber 1942

T. F. Green, cashier of th e B ank of
Valley, Neb., n ear Omaha, set out to
celebrate his 65th b irth d ay recen tly by
selling 65 w ar bonds.
By nightfall, he had exceeded his
quota, having sold 70.

F o r the y e a r to date, six principal
business indicators a t Om aha show in ­
creases over last year.

E. F„ O ’D O N N E L L , Manager

Confidentially and with becoming dignity

BANK EMPLOYEES PLACED.
37 Yeors Satisfactory Service.

A daughter, C atherine A nne, w as
born Oct. 6 a t Springfield, 111., to Mr.
and Mrs. Jo h n H arris Schirding of
P etersburg, 111. Mrs. Schirding is th e
form er Jessie C lark of Omaha, daugh­
te r of Mr. and Mrs. W . D ale Clark.
Mr. Clark is presid en t of th e Omaha
N ational Bank. Mr. Schirdnig is in
arm y service a t F o rt Riley, Kansas.

F A R N A M BUILDING
OM AHA
Chicago
New York
Minneapolis
Philadelphia

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

F. E. DAVENPORT & CO.
OM AHA

31
•
T hey include: B ank clearings, 38.1
p er cent; b an k debits, 27.6 p er cent.
F ran k F. B arker of Des Moines,
w ho fo rm erly w as so u th w est Iow a re ­
gional su p erv iso r for th e F ed eral L and
B ank of Omaha, has begun his duties
as executive se cretary of th e Iow a
D airy In d u stry Commission.

Nickels, nickels, w h o ’s got th e
nickels?
T h a t’s w h a t people w ere asking in
Om aha recen tly w h en a shortage de­
veloped in five-cent pieces.

T h en it w as explained th a t th e sh o rt­
age sta rte d w h en m in ts stopped coin­
ing nickels pending developm ent of
a new coin w hich w ould use silver and
o th er m etals in stead of nickel, w hich
is badly needed in w ar ind u stries. The
Om aha b ran ch of th e F ed eral R eserve
B ank norm ally d istrib u tes betw een
200,000 and 300,000 new nickels each
m o n th in N ebraska an d W yom ing.
W hen coinage w as stopped, the re ­
serve b an k began lim iting d istrib u tio n
to banks, and b an k s began lim iting dis­
trib u tio n to stores.
So cu stom ers had to be co n ten t to
get th e ir sm all change in pennies.
H it h a rd e st w as th e city ’s p ark in g
m eter system , w hich is th e biggest
nickel ta k e r in tow n.
R obert H all, executive vice p resi­

d en t of th e N o rth Side Bank of Oma­
ha, w as nam ed general ch airm an for
O m aha and Douglas county in th e
cleanup scrap drive Sept. 28-Oct. 17.
The N o rth Side b a n k e r also has
been active recen tly in negotiations to
get for O m aha a b e rth in th e A m erican
A ssociation baseball circu it in place of
th e St. P au l club. O m aha for m any
y ears w as in th e old W estern League
circuit.
Am ong team heads appointed for
th e an n u al Om aha C ham ber of Com­
m erce m em bership drive w ere F red
W. Thom as, vice p resid en t of th e F irs t
N ational B ank of Omaha; A lvin E.
Johnson, p resid en t of th e Live Stock
N ational B ank of Omaha, and Charles
E. P eterson , vice p resid en t of th e
B yron Reed Com pany. G eneral ch a ir­
m an w as M. L. C ham pine.
Am ong 13 associate ch airm en nam ed
for th e in itial (big) gifts division of th e
Om aha C om m unity C hest cam paign
w ere E llsw orth M oser, executive vice
president, U nited States N ational
B ank of Omaha; W. A. S aw tell, p resi­
dent, Stock Y ards N ational B ank of
Omaha; A lvin E. Johnson, president,
Live Stock N ational B ank of Omaha;

N E B R A S K A

N E WS

•

R u ssell J. H op ley, new presid en t of the

N o rth w estern Bell T elephone Com­
pany, and Clarence Landen, presidentgen eral m anager, Securities A ccept­
ance Corporation.

New Officers Elected
G erald Stalp, of W est Point, w as
elected presid en t of th e F arm ers and
M erchants B ank of W est Point, su c­
ceeding Dr. G. J. Collins w ho resigned
recen tly to spend th e w in ter in th e
south. A new d irector is Dr. A. W.
A nderson w ho also w as elected a vice
president. O ther directors are E arl

R eppert, J. A. Je rm a n and W. T.
Knievel.

New Bank Employe
F re d H erre, of Omaha, has started
in his w o rk as a clerk at th e Plattsm outh State Bank, com ing to Plattsm outh v ery highly recom m ended as
an efficient w orkm an. He has had a
great deal of experience in this line of
w ork in east N ebraska banks and w as
engaged in banking w ork at F ullerto n
and Brock and also in Om aha banks.

In War a s in Peace
O ur c o r r e sp o n d e n ts
in 4 2 s t a t e s r e c e iv e
our

very

best

in

S e r v ic e .

(ommercejrust (ompany
Capital, Surplus and U n divided Profits 13 Million Dollars

KANSAS

C IT Y 'S

Established 1865

LARGEST

BANK

IN 5EUR A N C E EC°'OR* OR A R O IN

Kansas City

N orthw estern Banker

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

N ovem ber

32

Nebraska News From Near and Far
H. W ILLIA M S, w ho has served

.th e Com m ercial N ational at A ins­
W
w o rth as cashier since its organization

the F irs t State Bank, G othenburg, re ­
p orted for d uty in th e arm ed forces of
th e U nited States on October 22nd.

in 1913, re tire d last m onth. T, E. R it­
ter w as advanced from a ssista n t to
cashier, and Mary E. Jon es w as elected
assistant. H. G. T h orley serves th is
b an k and also th e F irs t N ational B ank
of Springview , as president.
An arm y airfield project has m ore
th a n doubled th e volum e of business
being handled by th is bank.

A. E. D w ell us, presid en t of th e State
B ank of D annebrog, a t recen t convoca­
tion services at his local high school,
talk ed on A m ericanism , and w h at high
school stu d en ts can do to help w in the
w ar.
L. B. T itus, p resid en t of th e F irst
N ational Bank, H oldrege, died several
w eeks ago from pneum onia. New offi­

H ugh R alston, a ssista n t cashier of

cers of the ban k elected last m onth
include Liscom b W . T itus, president;
L. J. T itus, vice presid en t and cashier,
and L ulu J. T itus, director.
E. C. H u xtable, cashier of the B ank
of W ood R iver, rep o rts crops of all
kinds in his vicinity as excellent. De­
posits of his bank have doubled in the
p ast six m onths—a defense p lan t near
has tak en all th e ban k clerks, m eaning
a g reat deal m ore w ork to be done w ith
inexperienced help.
E. C. D avenport, presid en t of the N e­
brask a S tate Bank, V alentine, rep o rts
a splendid response in his com m unity
tow ard th e purchase of W ar Bonds and
Stam ps. Since P earl H arbor, his bank
has sold m ore th a n $220,000 in W ar
Bonds. D eposits of th e b ank th e m id­
dle of last m onth w ere $805,122, ap­
proxim ately $130,000 h ig h er th an at
th e sam e date a y ear ago. Mr. D aven­
p o rt says th is rise is due to th e in ­
crease in th e sale of cattle, as com­
pared to th e sam e period last year.

D eposits of the City N ational Bank,
H astings, have increased about 40 per
cent since th e call last Ju n e 30th, ac­
cording to A. J. K oelling, president,
w hich fact, he continues, has m eant
an increase in th e n um ber of officers
and em ployes of th e bank. An assist­
a n t cashier, Don A nderson, has gone
into th e arm ed forces, and th e bank
has appointed tw o new a ssistan t cash­
iers, V ern M anahan and H. B. Kollm an. A rdis Scbolz and Jack M oley
are new bookkeepers.

A S IN D U STR Y G O E S INTO HIGH

T

HE fu ll m o b iliza tio n o f A m erican industry for all-ou t w ar
p rod uction adds h eavily to the resp o n sib ilities o f th e n a tio n ’s

banks. T h is is esp ecially true o f banks w h ich are lo c a te d in c o m ­
m u n ities w h ere the rapid ex p a n sio n o f lo c a l in du stries co n v erted
to w ar w o rk is ta x in g cred it fa cilities to th e lim it.
T h e A m erican N a tio n a l B ank and T ru st C o m p a n y o f C hicago,
as part o f its o w n w ar effort, w e lc o m e s the o p p o r tu n ity to c o ­
op erate clo sely w ith banks so situ ated. Its lo a n in g resou rces are
availab le to su p p lem e n t theirs, and its fam iliarity w ith w ar c o n ­
tracts and w ith the req u irem en ts o f g o v er n m e n ta l a g en cies is
available to corresp on d en t banks w h en ev er the n eed arises.

A M E R I C A N N A TI ONAL BANK
A N D TR U S T COMPANY
OF CHICAGO
LA S A L L E S T R E E T j |

—

'

Member Federal Deposit ^

O U R

B U S I N E S S

N orthw estern B anker

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

I S

N ovem ber 1942

AT W A S H I N G T O N

•

| tj5*; Insurance Corporation

T O

H E L P

B U S I N E S S

The State B ank of L iberty reports
th a t loans have decreased because of
tw o causes, borrow ers are paying up
rapidly, and th e N ebraska B anking
D epartm ent is em phasizing repaym ent
of loans, b u t not m aking any re-loans—
a general house cleaning, as it were.
The S tate B ank does not pay any in te r­
est on deposits of any kind. An ab u n ­
d an t h a rv e st is reported, and this, w ith
advanced prices for farm products,
should ten d to increase b ank deposits.
The B ank of Brady, th ro u g h its p res­
ident, W. O. C ollett, m akes th e follow­
ing announcem ent to its custom ers:
“Because of a continuously large su r­
plus of idle funds, to g eth er w ith a
steady increase in deposits, afte r Octo­
ber 15, 1942, we shall not issue n o r re ­
new tim e certificates of deposit. All
o u tstan d in g tim e certificates w ill cease
to draw in te re st afte r th e ir m a tu rity
date.
“W e believe th a t our friends and cus­
tom ers w ill appreciate th e fact th a t
general economic conditions ju stify
(T u rn to n ex t page, please)

33

LEA R IN G S in L incoln’s th re e
dow ntow n b an k s for th e first nine
m onths of 1942 w ere m ore th a n 15
m illion dollars over th e sam e period
in 1941, w ith figures of $129,162,153 as
com pared to $113,812,989, according to
Ray B ecker, clearing house secretary.
S eptem ber clearings w ere dow n
som ew hat from A ugust, $15,217,470 be­
ing rep o rted ag ain st $15,236,669 th e
previous m onth. C learings for Sep­
tem ber, 1941, to taled $13,727,327.
T otal for th e th ird q u a rte r of 1942
w as $45,651,393, ag ain st $43,599,665 for
th e second. T h ird q u a rte r to tal in 1941
w as $41,372,301.

C

D onald P hilip E asterday, 30, a ssist­
a n t vice p resid en t of F irs t N ational
B ank and p ro m in en t civic leader, died
last m o n th a t th e hom e of his paren ts,
Mr. and Mrs. P hil R. E asterd ay . He
had been ill for some tim e.
E m ployed in th e b an k since he w as
14 y ears old, E a ste rd a y w as a g rad u ate
of L incoln H igh School and of th e U ni­
v e rsity of N ebraska L aw College w h ere
he took his LL.B. in 1935. In th e sam e
y e a r he w as ad m itted to th e N ebraska
bar.
S urviving besides his p a re n ts are his
wife, th e fo rm er B etty E verett; a
daughter, G retchen, 5; and tw o sisters,
Mrs. A rth u r W h itw o rth and Mrs. J. R.
K ingdon, both of Lincoln.
A ctive in C ham ber of Com m erce af­
fairs, E a ste rd a y w as local p resid en t
of th e ju n io r division in 1939-40 and
state vice p resid en t of th e ju n io r
cham ber in 1938. H e served for tw o
y ears on th e ju n io r cham ber executive
council.
H. A. S chneider of th e P la ttsm o u th
S tate B ank, a m em ber of th e legislative
com m ittee of th e N ebraska B ankers
A ssociation, w as a t L incoln recently.
The com m ittee w as m eeting to discuss
th e proposed legislation th a t m ay be

p resented to th e state legislature at
th e session n ex t w inter.
F rank L epinsk i, Omaha, w as elected

new presid en t of th e N ebraska Asso­
ciation of P ersonal F inance Com panies
at H otel Lincoln to succeed F. O. Gottsclialk, Columbus.
E dgar R eynolds, G rand Island, and
T. J. F arrell, Lincoln, are th e tw o new
vice presidents. John G. L ow e, K ear­
ney, is tre a su re r, and R. W . Gohde,
Lincoln, secretary.
The board of directors rem ains the
same: F. O. G ottschalk, Columbus; E d ­
g ar Reynolds, G rand Island; F ra n k
L epinski, Omaha; F ra n k E. Card, L in ­
coln; Jo h n G. Lowe, K earney; F ra n k
M. Jacobberger, Omaha; J. H. Mack,
Scottsbluff; T. J. F arrell, Lincoln; Cecil
B achoritch, F airb u ry ; H. N. Koyen,
F rem ont, and C harles Podhaisky, Al­
liance.

B ank custom ers w eeping openly as
th ey w alked out of the building shuf­
fling crisp, new five- and ten-dollar
bills . . . officials and em ployes snif­
fling co n stan tly and w iping th e tears
from th e ir cheeks, as though the in ­
stitu tio n had closed, and th ey w ere
all m inus jobs.
T h at w as th e p icture over a t th e
F irst N ational B ank after a girl em ­
ploye had accidentally touched off the
tear-gas system in th e F irst T ru st
Com pany offices, flooding th e v aults
w ith th e sy n th etic sentim ent-produc­
ing stuff. A nd th e gas seeped out of
th e v aults th ro u g h o u t th e basem ent
and up to th e eighth floor of th e build­
ing.
The offices of th e F irs t T ru st Com­
pany, w hich occupy th e basem ent floor
of th e building, w ere quickly evacu­
ated w hen th e gas began seeping in.

N EB R A SKA N EW S FROM
N EA R A N D FAR
(C ontinued from page 32)
our conservative program . You m ay
be assured th a t we shall continue to
serve you, as w ell as to develop and
safeguard th e in terests of our com­
m u n ity .”
H erbert H. E chterm eyer, a ssistan t
cashier of th e Live Stock N ational
B ank of Omaha, is recu p eratin g a t St.
Joseph H ospital follow ing an opera­
tion.
J. B. Cowger, w ho has been asso­
ciated w ith th e F irs t N ational B ank of
Springview for fifteen years, recently
resigned and left for th e w est coast
for w ork in defense. D orothy M.

Officers of this bank extend greetings to the
1942 Nebraska Bankers Association Convention.
We'll be there, as usual. A correspondent con­
nection with this institution is much like member­
ship in your State Association. The same spirit
of mutual cooperation is present in both cases.
YOU WILL LIKE OUR CORRESPONDENT
SERVICE!

(O N TINEN TA L |S| a TIONAL
LINCOLM
Member Federal Deposit Insurance Corporation

N orthw estern Banker

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

N ovem ber 19b2

34

Tharp w as advanced to a ssistan t cash­
ier, and o ther officers are: E, C. Logan,
cashier, and H . G. T horley, president.

A t a recen t m eeting, th e P aw nee
C ounty B an kers A ssociation purchased
th e Paw nee C ounty Bonds in th e
am ount of $71,000, at an in te re st rate
of 214 per cent, as th e five y ear option
of th ese bonds w ill be up n ex t Ju ly and
th e p resen t in terest rate is 3% per cent.
The Paw nee C ounty B ankers m ade an
option th a t th e county can pay off any
am o u nt a t any in te re st paying date,
being sem i-annually.
On October 16th th e banks a t Paw nee
City and B uchard closed and h ad a
scrap drive, and had a v ery successful
day. T his included all business houses
in both tow ns w ho closed th e ir doors
for th e day and w en t out and assisted
in th e drive.

The famous old m instrel line, “Ah
wants mo’ money!” is a sentim ent as
wide-spread today as ever. Nowhere
is the need of additional earnings
more acutely felt th an among banks.
The Todd Pay-As-You-Go Check­
ing Account System is a realistic
means of adding to a b an k ’s profit
account for these reasons:
1. I t provides the features th a t prof itable customers appreciate.
2 . You receive tested plans for m er­
chandising it on a volume basis —
methods which many other banks
have used successfully.
Tap this growing m arket for a
means of paying bills conveniently,
safely and at low c o st...a n d saving
the custom er’s time, tires and gaso­
line. W ant more details?

w here he w as em ployed for 14 years.
He w ill have charge of th e b a n k ’s p er­
sonal loan departm ent, w hich w as a
new d ep artm en t for th is b an k about
a y ear ago.

Amherst Banker Dies

A rth u r T. Reynolds, 65, w ho w as
engaged in th e b an king business at
A m herst for n early 40 years, died sud­
denly at his hom e early last m onth.
D eath is believed to have been due
to a h e a rt attack.
Mr. Reynolds w as w ell know n in
banking circles and had m any friends
at A m herst w here he sp ent th e g reater
p a rt of his life.
W hen a young m an he ta u g h t school
and later w as organizer of insurance
and fra te rn a l lodges in Colorado, Ne­
braska, M ontana and W yom ing and
from 1902 to 1903 w as em ployed in a
bank at N orth Loup.
J. M. N ider, presid en t of th e State
He organized th e A m h erst State
B ank of Jansen, recen tly served on the
B ank and served as its cashier u n til
ju ry of th e F ed eral C ourt at Lincoln.
1908 w hen it w as converted into th f
F irs t N ational B ank of A m herst and
H. T. F ast, cashier of th e S tate B ank served as its cashier u n til his death.
of Jansen, recen tly com pleted tw entyth re e y ears of service w ith th is bank,
Holdrege Banker Dies
m ost of th e tim e as cashier.
Louis B. T itus, 62, presid en t of the
F irs t N ational B ank of H oldrege, is
T his p a rt of N ebraska w as favored
w ith excellent crops th is y e a r and dead follow ing a sh o rt illness. T itus
deposits are up and loans are being had been pro m in en t in b anking circles
for 42 y ears and w as a leading citizen
paid off as a result.
of his com m unity, su p p o rtin g civic
and com m unity enterprises.
A t a recen t d irecto rs’ m eeting of the
South Omaha Savings Bank, R ay F.
S lizew sk i w as appointed a ssistan t cash­ Bank Changes
ier. Mr. Slizewski has been v ery ac­
Miss Neola C arter has resigned her
tive in A. I. B. w ork in th e city of position at th e F a rm e rs State Bank,
Omaha, and w as form erly connected
Silver Creek, h aving left for H astings
w ith th e Stock Y ards N ational Bank, w here she w ill en ter n u rses training.

The Todd Company, Inc.,
Rochester, New York
I should like details of the Todd
Pay-A s-Y ou-G o Checking Account
System and the prom otional m ate­
ria l t h a t h elp s to g e t p ro f ita b le
accounts.

O

u

t - o

f - T

o

w

n

¥ >

a n k s

O ut-of-tow n banks and bankers w ill find here

N ame

com plete banking fa cilities for prom pt and

T itle _

economical handling of accounts in Chicago. We

B ank Name

would appreciate the opportunity o f serving you.

A ddress-----

N.W .B. 11-42

C
ROC HES TE R
O F F I C E S IN ALL

N orthw estern B anker

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

N E W Y OR K
RI NCI PAL CI TI ES

N ovem ber 19k2

it y

IV

a t io n a l

AND

TRUST

2 0 8

S O U T H

COMPANY

H

a n k

of Chicago

L A S A L L E

lMember Federal Deposit Insurance Corporation)

S T R E E T

Miss Lucille Abel is tak in g h e r place
at th e bank, th e h o u rs th e re not in te r­
ferin g w ith h e r d uties as librarian.

Resigns

HELPING BURROUGHS USERS MEET TODAY’S PROBLEMS
WITH THEIR PRESENT EQUIPMENT

Miss E d n a P arso n s left recen tly
for h er hom e at C arpenter, W yoming;
hav in g resigned from h e r position in
th e S tate B ank of P alm er.

Annual Corn Show
The th ird a n n u a l corn show spon­
sored by th e C entral N ational B ank of
Colum bus w ill be held in th e b ank
lobby Saturday, N ovem ber 14th, it w as
announced by b an k officials.
F a rm e rs in th e Colum bus tra d e te r ­
rito ry have been asked to be on th e
lookout for large and w ell shaped ears
of corn, b oth open pollinated and h y ­
brid, w hile h u sk in g corn. E n trie s in
th e show can be m ade d u rin g th e 10day period from N ovem ber 4th to
N ovem ber 14th. E ach e n try is to con­
sist of 10 ears.
T here w ill again be $75 in cash prizes
aw arded w in n ers in th e show, and in
addition, a tro p h y to th e g ran d cham ­
pion. Ju d g in g w ill be by an official
of th e sta te ex tension service.

New Assistant
Mrs. W. C. W icks sta rte d recen tly to
assist in th e P rim ro se B ank in place
of Billie Davis, w ho w ill soon e n te r
th e arm y.

State Vice Presidents
S tate vice p resid en ts of th e A m eri­
can B an k ers A ssociation have been ap ­
pointed for th e y e a r 1942-43 by W.
L in n H em ingw ay, A. B. A. president,
w ho is p resid en t of th e M ercantileCom m erce B ank an d T ru s t Company,
St. Louis, M issouri.
Ten of th e appointees are new com ers
to th e A. B. A.’s ro ste r of sta te vice
presidents. T hey are: Iow a—R ichard
R. R ollins, vice president, B ankers
T ru s t Com pany, Des Moines; K ansas—
A. W. K incade, president, F o u rth N a­
tio n al B ank, W ichita; M innesota—N.
A. W elle, cashier, A rlington State
B ank, A rlington; New Y ork — F re d ­
erick V. Goess, president, P ru d e n tia l
Savings B ank, B rooklyn; Ohio—A. C.
Johnson, president, K enton Savings
B ank, K enton; Oregon—J. B. Booth,
vice president, B enton C ounty State
B ank, Corvallis; South C arolina—L. M.
Milling, vice presid en t, T he South
C arolina N ational B ank, Columbia;
T exas—D. T. Ray, vice p resid en t and
tr u s t officer, F irs t N ational B ank,
H ouston; V erm ont — S tetson C. E d ­
m unds, tre a su re r, R u tlan d Savings
B ank, R utland, and W est V irginia—
H ayes Picklesim er, executive vice p re s­
ident, K anaw ha V alley B ank, C harles­
ton.

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

Suggestions like these may help you to obtain
more posting hours a day with your machines
Relieve the operator of non-posting work—
Have a clerk do the sorting, short-listing, checking for
errors, heading new accounts, and so on.

Eliminate the bottlenecks—
Rearrange the flow of work so that more tim e is available
for actual posting.

Take full advantage of machine features—
Make sure that the operators are thoroughly fam iliar with
all keyboard controls, autom atic features and the various
special tim e-saving advantages built into the m achines
they are using.

Avoid mechanical interruptions—
by keeping m achines in the best possible operating condi­
tion through regular inspections, cleaning, lubrication and
accurate adjustm ents by Burroughs service m en.
1

Y

1

For m any other suggestions that will help you get the most
out of your present Burroughs equipm ent, telephone your
local Burroughs office, or, if you prefer, write direct to—
BURROUGHS ADDING MACHINE CO., DETROIT, MICH.

36

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N in th a n d G r a n d

COMPANY
D e s M o i n e s , Iowa

"Over a Third o f a Century o f Safety and Service with Savings
N orthw estern B anker

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

N ovem ber 19^2

On the following
pages there is a
timely story on...
R


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

E

C

O

R

D

A

K

A KODAK ADVERTISEMENT publicizing
"V——MAIL" to more than 18,600,000
readers of leading national magazines

T h e sam e Recordak System with w h ich you, as bankers, are so familiar
has n ow b e e n ad apted for " V ------MAIL"— the n ew and sp eed ier m eans
of com m unication b etw een our m en on distant fronts and their fam ilies
and friends at hom e.
B uilding and sustaining m orale as few other factors can, "V*** — MAIL"
ow es its very ex isten ce to the b anking industry. For it w as in the
banks of A m erica that R ecordak w as p ion eered , proved, and p erfected
to the point w h ere " V ------ MAIL" has b eco m e an actuality.

RECORDAK C O R P O R A T IO N • 350 M A D IS O N A V E N U E • N E W Y O R K , N . Y .
(SUBSIDIARY Or EASTMAN KODAK COMPANY)


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

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

There 1$ a V a s t

HewMarket

For Casualty Coverage
IN T H E last few years, th e re has been
I a noticeable tre n d in th e broadening
of coverages and stream lin in g of poli­
cies, such as th e vario u s co m prehen­
sive coverages, autom obile and o ther
liability, g uest m edical riders, valuable
pap ers and accounts receivable poli­
cies, w hich m eans th e casualty com­
panies are doing th e ir b est to m eet the
req u irem en ts of th e public and an tici­
pate th e ir w an ts and can, by th e sam e
token, be relied upon to do so during
th e w ar period. An exam ple of this
is th e w ay in su ran ce com panies have
been cooperating w ith th e g o vernm ent
in connection w ith arm y and navy
projects.
W h at effect th e w a r w ill have upon
coverages is som ew hat difficult to
guess, b u t we can alread y see th e tren d
developing in w o rk m en ’s com pensa­
tion in th a t w o rk m en ’s com pensation
experience is g ettin g w orse, due to
green help and speed. (I am not re ­
ferrin g p a rtic u la rly to defense w ork)
and the re tu rn to w o rk of m en far
along in years, p a rtic u la rly in th e con­
tra c tin g classes, to obtain som e of the
easy m oney.
It is in te re stin g to note th a t in 1941
stock com panies had an u n d e rw ritin g
loss in w o rk m en ’s com pensation of
4.14 p er cent; th is m eans a loss of
$7,381,930; autom obile public liability
in su ran ce has im proved considerably
d u rin g recen t m onths, due to lack of
exposure and speed lim its. In th e gen­
eral public liability lines, a consider­
able am o u n t of business is going off
th e books, as m any sm all businesses
are closing, due to lack of p rio rities or
d e p a rtu re to th e arm ed forces or de­
fense w ork.

By William F. Somerville
Assistant S e c r e t a r y
St. Paul-Mercury Indemnity Co.
St. Paul

W IL L IA M F. S O M E R V IL L E

On th e o th er hand, th ere are today
thousands of people w ho can now af­
ford to buy insurance w ho could not
previously. T his should open a v ast
new m ark et for all kinds of insurance;
consider (1) th e dem and for all kinds
of b u rglary, robbery and th e ft in su r­
ance, because th e firm or individual

wishes to p ro tect w h at they now have;
(2) the busy retail establishm ents w ho
have never heard of accounts receiv­
able insurance; (3) th e increased de­
m and for plate glass insurance, and
(4) th e increased need for fidelity in ­
surance created by rapid tu rn o v er and
increased personnel.
So far as the com panies are con­
cerned in v estm en t incom e is curtailed;
stocks and bonds are not going to ap ­
preciate and th is p u ts it squarely up to
the u n d erw ritin g dep artm en ts to show
a profit. W orld W ar I produced prac­
tically no increase in expenses, due in
p a rt to th e trem endous increase in p re­
m ium s; loss ratios w ere steady so the
com panies came out larg er and
stro n g er th a n th ey w ere before. It is
going to be m ore difficult in th is w ar,
due to broader coverage, low er rates
and increasing loss ratios. It is of
param o u n t im portance, therefore, th a t
we m ake an u n d erw ritin g profit not
only because of decreased in vestm ent
earnings, b u t also because of taxes.
Now let us consider for a m om ent
the change in hazards bro u g h t about
by the w ar. In w o rk m en ’s com pensa­
tion th e possible w ar hazard is the
m ost serious, and serious legal ques­
tions w ill m ost certainly arise. In
m ost states the acts cover accidents
w hich occur “in th e course of” and
“arising out of th e em ploym ent;” n a t­
u rally in th e building of com pensation
rates th ere is no p ast experience of
w ar and such hazard is not tak en into
consideration; it is possible some
serious questions w ill arise. If an acci­
dent has to arise “in th e course of”
and “out of” th e em ploym ent, th ere
are tw o conditions. In one case we

S carborough ¿ C ompany
4A h £ t f l C £ s
First N ational Bank Building, C hicago

ù ' u t f u Î e ià

Horace A, Smith, Iow a R epresentative
Des M oines, Iow a

N orthw estern Banker

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Federal Reserve Bank of St. Louis

N ovem ber Î9b2

38
THE HARDER WE
WORK TO KEEP
THEM FREE
.t h e m ore apt w e a re
to m a k e them se cu re

A s w e a t h om e sw eat and scrim p
and save — as w e p a y taxes, p ay
off d eb ts, and b u y W ar B on ds,
w e are n o t on ly doing w h at w e
m u st do to w in th e w ar, b u t we
are h elping to m ake A m erica after
the w a r a stronger n ation , a better
p la ce f o r soldiers to come home to.
W e are tou gh en in g b od y and
spirit — and th a t is a good and
w holesom e th in g. A t th e sam e
tim e w e are creatin g solvent f a m ­
ilies— fam ilies th a t stand on their
ow n fee t finan cially — fam ilies
b etter prepared to do w hatever
m u st be done in tom orrow ’s u n ­
know n world.
T h is is th e silver lining behind
th e gatherin g cloud o f sacrifice
and self-denial. I t is som ething a
life in surance com p an y can co n ­
tem p la te w ith special sa tisfa c­
tion . . . for th e financial in d ep en ­
dence o f th e fam ily, whether or not
th e breadw inner liv es ou t his
norm al span, has alw ays been the
prim e o b jective o f our business.

can see, for exam ple, in a seacoast
city, th e enem y m ay go out to bom b a
defense p lan t m an u factu rin g shells
and it w ould occur “in th e course of”
and “arise out of” em ploym ent in the
shell loading factory, w hereas if th e
bom b hit a d ep artm en t store across
th e street, it w ould occur “in the
course of,” b u t it w ould not “arise out
of” th e fact th a t th ey w ere w orking
in a d ep artm en t store.
In th e OL&T and o ther general
public liability lines, we have to give
some th o u g h t to th e hazards of the
blackout. No special legislation exists
so fa r in th e U nited States so a t th is
tim e it is im p o rtan t th a t we know
w h at th e E nglish experience has been,
as it is v ery probable th e A m erican
courts w ill be guided by th e E nglish
decisions. One in terestin g question
w as in connection w ith th e recen t St.
P aul blackout; it w as w h eth er the
ow ner of an ap artm en t building w ould
be liable for an in ju ry caused to a te n ­
a n t due to a blackout by sh u ttin g out
all th e lights instead of blacking out
th e doorw ays and w indow s and leav­
ing a light in the public halls. T his is
quite an in terestin g case, as th ere have
been m any plaintiffs w ho have claim ed
an accident because th e prem ises w ere
so d ark th ey could not see. T he Su­
prem e C ourt of M innesota has ruled
th a t if it is th a t dark, th ey are negli­
g en t in m oving a t all and, therefore,
have given a v erd ict to th e defendant.
In th e B ritish Isles practically all
th e cases I have seen deal w ith au to ­
mobile and p ed estrian accidents and
m ost questions tu rn upon th e question
of w h e th er th e d riv er w as going a t a

speed th a t w ould allow him to stop
w ith in th e am bit of his vision or
w h eth er it w as th e p e d estrian ’s fault
in not keeping a p roper lookout. F rom
these cases it w ould appear th a t the
pedestrian m u st take m ore responsi­
bility and m u st realize th a t th e m otor­
ist has necesarily v ery lim ited vision
and he, th e pedestrian, can see th e
autom obile long before th e m otorist
can be expected to see him. In m ost
cases verdicts have been given for the
defendant, th e m otorist. It behooves
the p ed estrian to be v ery careful, cu t­
ting out all jay-w alking and only cross­
ing afte r due precaution a t in tersec­
tions. An in terestin g point comes up
—I hope it w ill nev er do so h ere—
w here an autom obile is dam aged by
falling into craters or ru n n in g into
debris caused by bombs. If an acci­
d en t occurs in th e n ig h t and a bomb
has fallen earlier th e sam e night, th en
the dam age is due to w ar risk; on the
o ther hand, if th e auto ru n s into a
c rater or debris some considerable
tim e after it w as form ed, th e n the
dam age m ay w ell be due to th e d riv e r’s
failure to keep a pro p er lookout. In
num erous cases m unicipal bodies have
been sued on account of in ju ries sus­
tained du rin g blackouts due to m unici­
pal negligence in th e construction and
m aintenance of streets. Cases indicate
w here an obstruction has law fully
been placed on th e highw ay th ere is
no com m on law d u ty to take any ac­
tive steps by lighting or p ain tin g to
p rev en t its becom ing a danger to th e
public, b u t once th ey v o lu n tarily take
such steps th ey becom e liable for any
(T u rn to page 51, please)

T h is m essage is a p a r t o f N w N L ’s cu r r e n t
n a tio n a l m a g a z in e a d ve rtise m en t.

Northwestern
N a t i o n a l L ife
INSURANCE

C O M PA N Y

O. J . Arnold,
P r e sid e n t

M in n e a p o l is ,

CASUALTY COMPANY
DES MOINES
An Agency Company — Asiets Over $4,000,000

• Automobile Insurance
• Workmen's Compensation
• General Liability
• Elevator Insurance
• Plate Glass Insurance

N orthw estern B anker

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Federal Reserve Bank of St. Louis

M U T U A L

P A Y S "

A F a c t Demonstrated Hundreds of Times Daily

M in n e s o ta

EMPLOYERS
MUTUAL
L
L

" A L L I E D

N ovem ber 19^2

The Sign o f Same day Service on
W O R K M E N 'S
C O M P E N S A T IO N
P U B L IC L IA B IL IT Y ★
A U T O M O B IL E IN S U R A N C E
See

Y o u r A llie d

M utual A g e n t

A LLIED MUTUAL C A SU A TY CO.
Harold S. Evans,
Hubbell Building

P resid en t
Des Moines, Iow a

39

CommercialBanks W ill

Have

A Load to Carry
"Every Country Bank Should Thoroughly Investigate the Possibility of Increasing
Its Earnings Through Purchase of Current Treasury Offerings"
A gain in October th e
m a rk e ts w ere firm to
b e tte r — b o n d s being
firm and stocks being
b etter.
The foreign
new s ap p aren tly played
little p a rt in th e prices
of securities in th e past
few w eeks — dom estic
developm ents g ettin g m ost of th e
atten tio n . The fierce resistan ce of th e
R ussians w as p re tty w ell discounted
in Septem ber, w hile our ow n losses
in th e Solom ons did n o t b reak prices
—alth o u g h en th u siasm in th e stock
m a rk e t w as tem p ered in th e last tw o
weeks.
The final p assage of th e tax b ill—
w h ich w as not as drastic on corpora­
tion s as the prelim inary drafting in di­
cated—helped the stock m arket m ore
than any other sin gle factor. The
prospects of som ew h at b etter earnings
and the probability of less drastic cuts
in d ividends relieved th at part of the
com m un ity of in vestors w ho b et on
stock s. Then, too, there is som e fee l­
in g around that corporations have
been taxed about as m uch as th ey w ill
be—and th at the n ex t tax b ill w ill
again h it the in dividu al even harder.
Since a n ew b ill to raise at least six
billion dollars m ore w ill probably be
introduced in January—w e should
k n ow part of the bad n ew s soon.
B u t the average in dividu al is set
m en tally for h igh er taxes now . H e
gru m bles—w h ich is natural. H e is
disappointed th at in W ash ington red
tape requires th at several m en are n ec­
essary to do one m an’s job. H e regrets
th at adm irals do not speak to gen erals
or vice versa—he is unh app y th at la­
bor u n ion s close dow n w ar plants in
w ild cat strik es. In fact, he is dow n­
righ t mad about it w h en he reads the
la test casualty list in th e n ext colum n
in h is n ew spaper. B u t th is su ccession
of even ts, for som e unaccountable rea­
son, seem s a n ecessary sequence in a
dem ocracy at w ar. Som e progress is
b ein g m ade— even tu ally our taxes w ill

T h e M o n th 's M a r k e t M a n e u v e r s
P rep a red fo r
The

N orth w estern

Banker

By James H. Clarke
As sist ant Vice President
American National Bank & Trust Co .
Ch ic ago

buy m ore—but efficient organization is
som e distance off.

W e m entioned earlier— stocks were
strong in October. E specially during
the first tw o w eeks. The Dow-Jones
average fo r industrial stocks, w hich
stood at 109.11 at the close of the m ar­
k e t on S eptem ber 30th, was 113.11 at
the close yesterday. (W e are w ritin g
this on October 29th to m eet our pub­
lisher’s deadline.) T he favorable ac­
tions of the Senate on the ta x bill
touched off the rise early in the m onth,
and by the fo u rteen th the average
reached 115.01— but since that it has
eased alm ost two points.
To date th ere have been tw entyth ree days of trad in g in th e m onth.
Stocks advanced fo u rteen days—de­
clined nine. T he volum e of trad in g
picked up m aterially. T here w ere two
days in w hich th e n u m ber of shares
trad ed exceeded one m illion—a rare
occurrence in these tim es. The n atio n ­
al elections, w hich w ill probably be
out of th e w ay w hen th is article ap ­
pears, m ay have some tem p o rary m a r­
k et effects—b u t in th e long ru n it w ill
be taxes, earnings, m aterials and la­
bor costs — th e basic considerations
w hich w ill determ ine th e tru e value
of equities. In G reat B ritain th e stock
m ark et—w hile adm ittedly u n d er close
regulation—is a t th e b est level since
early in 1938—over a year before th e
o u tb reak of th e w ar. D u nkirk bro u g h t
a sh arp collapse, b u t since th e n th ere
has been a steady recovery—proving
th a t once th e w orst is know n and a
co u n try has settled dow n to one h u n ­

dred p er cent w ork, u n certain ties no
longer depress prices appreciably.
M unicipal bonds—general obligations
of sta tes and cities— w ere b etter in
October. E sp ecia lly in th e first w eek
or tw o after the Senate k illed the pro­
v ision in the R evenu e A ct w hich
w ould have taxed th ese bonds. L ow
grade railroad bonds w ere shaken
dow n by the a n nou ncem en t of an
am endm ent to the R evenu e B ill w hich
w ould have taxed trading profits 90
per cent—but th is w as k illed. Bonds
of so lv en t roads wrere affected slig h t­
ly but for the m ost part w ere firm—
braced no doubt by good earnings
as Avell as a p rovision in the n ew act
p erm itting the purchase of their d is­
count bonds w ith o u t the n ecessity of
reporting as a profit the difference be­
tw een the purchase price and par.
P ub lic u tility and in du strial bonds
w ere firm—n ew financing and refund­
in g w ere practically n on-existent.

A s each m o n th has gone by, the im ­
portance of G overnm ent financing in
the w hole picture has become increas­
ingly apparent. As w e w rite this it
seem s th a t in the current fiscal year
ending Ju n e 30, 1943, G overnm ent ex­
penditures w ill total about eighty bil­
lions. Incom e fro m all sources except
sales of bonds— practically all taxes,
of course— should total roughly tw e n ­
ty-one billions. T hat leaves a bond
selling program of s ix ty billions for
n ew m o n ey— of w hich about tw e n ty
billions has been completed. A n d that
is n ot all. In the n e x t fiscal year, if
the w ar continues, w e shall probably
have expenditures of one hundred bil­
lions.
I t is especially im p o rtan t th a t banks
in th e co u n try realize this.
The
am ounts raised by th e sales of w ar
bonds and tax notes to corporations
and individuals—th e m oney secured
by th e sales of “ta p ” issues to in su r­
ance com panies and individuals, w ill
be im p o rtan t—b u t th e com m ercial
banks w ill have to c arry th e bulk of
N orthw estern Banker


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

N ovem ber 19^2

40

th e load. B anks in New Y ork and
Chicago have increased th e ir G overn­
m ent bond holdings in v ery su b stan ­
tial am ounts. T he te n larg est New
York b anks had b u t 25 p er cent of
th e ir funds in cash on S eptem ber 30th
—m uch low er th a n th e average sm all­
er bank. Sixty-one p er cent of all ex­
cess reserv es are now out in th e coun­
try and if th e T re a su ry is ever forced

to use persuasion to sell its issues it
probably w ill not be directed at the
C entral R eserve Cities.
W ith loans d eclin in g in the sm aller
cen ters—and w ith the evidence on
hand that th is w ill con tinu e— every
country bank should thorough ly in ­
vestigate the p ossib ility of in creasing
its earnings through purchase of cur­

Pictured: A New Source of Loans
D R IED E G G S '
B E L O W : Barreled for
overseas shipm ent.

Field Warehousing

rent Treasury offerings. R ates of re­
turn ad m itted ly are below w h at one
has secured on loans—far belowT, in
m ost cases—hut if m aturities are lim ­
ited to the sh orter issu es, larger
am ounts can be in vested . Short term
G overnm ents w ill not hurt—and don’t
con fuse them w ith the old fourth 4 1/4s
of the last w ar—w hich in 1918 had
still tw en ty years to run to the abso­
lu te m aturity.

Lowman and Hopley
Advanced by
Northwestern Bell
Two directors of th e U nited States
N ational B ank of Omaha figured prom ­
inen tly in th e business headlines last
m onth, w hen A. A. Low m an w as
nam ed to th e ch airm anship of the
board of directors of the N o rth w estern
Bell T elephone Company, and R ussell
J. H opley w as elected presid en t to

lyDouglas-Guardian

adapted to NEW uses and new NEEDS
A ty p ic a l " w a r b a b y " 1942 m odel is DRIED EGGS! C om panies in th e b u sin ess
in c re a se d o v e r 500 p e r cen t th e p a s t y e a r! P roduction sky-rocketed! Field w a r e ­
h o u sin g b y D o u g la s-G u a rd ian h e lp e d b a n k e rs su p p ly n e e d e d c a p ita l to s e v e ra l
eg g d ry in g c o m p a n ies on a so u n d loan basis. A la rg e p e rc e n ta g e of o u r b u s in e s s
is n ow id en tified w ith su p p lie s for o u r fig h ters.
F R E E B O O K L E T on re q u e st.
A b ig g e r a n d m ore c o m p re h e n siv e edition of our
w e ll-k n o w n p o ck et size B ooklet on F ie ld W are h o u sin g a n d D o u g la s-G u a rd ian
Service. W rite for a copy.

Field

Warehousing

D O U G L A S - G U A R D IA N

W A REH O U SE

C O R P O R A T IO N

Nation-wide Field Warehousing S e rv ic e
C H IC A G O — Suite 1 1 0 4 -A , 10 0 W est Monroe Street
A T L A N T A , GA.
M EM PHIS, T EN N .
SPRIN G FIELD ,

CL E V E L A N D , O H IO
N E W Y O R K , N. Y.

MO.

SPRIN G FIELD ,

F in a n c in g

N EW O R L E A N S , 11 8 North Front Street

DALLAS, T EX A S
P H IL A D E L P H IA , PA.
M ASS.

W ar

SAN

E A S T O N , PA.
PORTLAND, ORE.
FR A N C ISCO ,

LOS A N G E L E S, CA LIF.
R O C H E S T E R , N. Y.

CALIF.

TAMPA,

P r o d u c t io n

L o c a ted in A m e r ic a ’s arm am ent cen ter, this bank is e sp e cia lly
equipped to d eal w ith financial p rob lem s arisin g from w ar p rod u ction .
P le d g e d , as w e are, to do all in our p o w er to furth er the p ro secu tio n
o f th e w a r, w e h a v e set up a W ar L oan D iv is io n , ex p erien ced in the
a n a ly sis o f w ar co n tra cts and fam iliar w ith the req u irem en ts o f the
arm ed se r v ic e s and oth er g o vern m en tal a g en cies.
W e offer ou r se r v ic e s n ot o n ly to lo ca l co m p a n ie s in need o f w ar p ro­
d u ctio n lo a n s b ut a lso to ou r co rre sp o n d en ts th rou gh ou t the cou n try
w h o se tra n sa ctio n s w ith D e tr o it w ar in d u stries can be ex p ed ited by
ou r sp ecia l and d irect a tten tio n to their n eed s.

N A T IO N A L B A N K O F D E T R O I T
C om plete B ankin g an d Trust S ervice
D E T R O IT , M I C H I G A N

N orthw estern B anker

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Federal Reserve Bank of St. Louis

N ovem ber 19U2

FLA.

succeed him. Both m en came up
th ro u g h th e ran k s to earn and occupy
th e positions th ey now hold.
Mr. L ow m an’s first telephone w ork
w as at Clarinda, Iowa, in May, 1894,
w here he w as groundm an, linem an and
general helper about th e telephone
office. D uring his m ore th a n 48 years
of service w ith th e telephone com pany
he w as in staller at Oskaloosa, Iowa;
d istrict m anager at Shenandoah, Iowa;
su p erin ten d en t of in stallatio n and con­
stru ctio n at Council Bluffs, Iowa, and
Omaha, N ebraska; division su p erin ­
ten d en t of p lan t for N ebraska and
South Dakota; division su p erin ten d en t
of p lan t for M innesota and th e Da­
kotas; general su p erin ten d en t of plant
for th e en tire com pany in five states,
and vice p resid en t and general m an ­
ager and vice presid en t in charge of

41
operations for th e com pany, before be­
com ing p resid en t in 1935.
Mr. H opley en tered th e telephone
business 27 y ears ago at F o rt M adison,
Iowa, as a collector, and has been in it
continuously since, except for n early
tw o y e a rs ’ service w ith th e arm y d u r­
ing th e last w ar, about a y e a r of w hich
w as in F rance. Am ong th e telephone
positions he has held are those of m an ­
ag er at M cGregor and W aterloo, Iowa;
d istric t m an ag er a t Des Moines, com ­
m ercial o perations su p erv iso r for th e
com pany, and gen eral m an ag er at

are potentially profitable custom ers for
b anks w ho m ake it easy for them to
deposit th e ir earnings w ith o u t taking
tim e off for a trip to th e bank.
Staggered office and retail store
h o urs m ake it m ore difficult th a n ever
for em ployer and em ploye alike to get
to th e bank. H ousew ives a re n ’t going
to “be dow n tow n an y w ay ” m uch on
four gallons a week.
A good bank-by-mail system w ill in ­
crease a b a n k ’s business and please its
custom ers at th e sam e time.
The secret of handling th is type of
business successfully is the in stalla­

tion of a practicable sim ple system ,
am ple to give you com plete and “fool­
proof” records, and yet involving a
m inim um of detail and clerical work.
The new est contribution to th e success
of banking by m ail has been m ade by
th e B erkow itz E nvelope Company.
T his com pany has introduced a special
bank-by-mail envelope w ith several
im proved features.
T his new envelope is constructed
w ith the custom ary deposit slip, re ­
tu rn receipt, and provision for the
necessary auditing inform ation. In
addition, B erkow itz has added a “safe-

A Victory
on the Form Front
This Nation has cause to be proud— cause
for Thanksgiving. Farmers this year sur­
passed all records of crop and livestock
production for our military and domestic
needs and those of our Allies.
R U S S E L L J. H O P L E Y

They were blessed with good weather but
this achievement in reaching their goals is
proof that our thanks should also go to the
farmers themselves. They raised the crops
we needed most in the greatest quantities.
They won the battle of Food-for-Freedom
in 1942. In their field of production they
are entitled to hoist the " E ” pennant.

Om aha for th e N ebraska-South D akota
area before becom ing vice p resid en t in
charge of o perations in 1937.
Mr. H opley w as b o rn at Blue Island,
Illinois, b u t his p a re n ts m oved to F o rt
M adison, Iowa, and th a t w as his boy­
hood home. Mr. and Mrs. H opley’s
fam ily consists of tw o sons, R ussell, 11
y ears old, and John, 8 y ears old.
F re d R. K appel, w ho succeeds Mr.
H opley as vice p resident, e n tered th e
telephone business a fte r g rad u atin g
from th e U n iv ersity of M innesota in
1924.

The Federal intermediate credit banks are
proud of the record of agriculture and they
thank the purchasers of their debentures
which made it possible for them to aid in
financing the record-breaking production
of Food-for-Freedom.

Banking by Mail
The g o v ern m en t gives and th e gov­
e rn m e n t tak es aw ay—and one of th e
th in g s it gives is good m ail service.
Today, th e postm an is saving tim e,
gasoline and tire s for th e A m erican
people and th e b an k s of th e co u n try
are com ing to th e fro n t by offering
depositors a carefully developed bankby-m ail service.
T housands of w o rk ers in defense
p lan ts and o th er m an u factu rin g lines
are w orking full tim e—and overtim e—
and receiving fat pay envelopes. T hey

THE FEDERAL INTERMEDIATE CREDIT BANKS
ST. PAUL, MINN.

NEW ORLEANS, LA.

OMAHA, NEB.

BERKELEY, CAL.

COLUMBIA, S. C.

ST. LOUIS, MO.

WICHITA, KAN.

SPOKANE, WASH.

In fo r m a tio n r e g a r d in g D e b e n tu r e s m a y b e o b t a in e d fro m

CHARLES R. DU N N , F is c a l A g e n t

31 Nassau Street, New York, N. Y.

N orthw estern Banker

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

HOUSTON, TEX.

LOUISVILLE, KY.

BALTIMORE, MD.

SPRINGFIELD, MASS.

N ovem ber 19b2

42
ty flap” th a t tucks th e conten ts in
safely, and reduces th e tem p tatio n of
tam pering. T here are no p erfo ratio n s
th a t could possibly pull loose w hile in
th e m ails, y et one m otion of a pap er
knife m akes th e deposit slip, checks,
and re tu rn receip t read y for quick
handling. A nother featu re w hich ap ­
peals to all b anks is th a t th e deposit
slip is of single thickness, and tak es up
no m ore filing space th a n th e slip in
ord in ary use. T hese envelopes also
have an opaque lining th a t m akes th e
contents safe from p ry in g eyes w hich
like to satisfy th e ir inquisitiveness by
looking at an envelope held up to th e
light.

A lthough this bank-by-mail plan has
b u t recen tly been placed on the m a r­
ket, it is th e re su lt of m any m onths of
research and study on th e p a rt of the
B erkow itz organization. As you w ould
expect, th e B erkow itz type envelope
re p re se n ts an im provem ent over com­
p etitiv e m akes already in the field, and
th e fact th a t th is envelope is “custom
m ade” to fit into a b a n k ’s needs is
proved by the quick acceptance it has
received in a brief period. The first
announcem ent, less th a n a m onth ago,
b ro u g h t in a flood of inquiries from
in terested banks.
The m ore progressive financial in sti­
tu tio n s are already offering th e ir cus­

Guaranty Trust Gonipany of New York
Fifth Ave. at 44th St.

^

oadway

Madison Ave. at 60th St.

tom ers th is service, and all banks are
endeavoing to aid in th e w ar effort
by conserving tire s and tim e w ith a
bank-by-m ail service.

Advanced to Presidency
At th e abbreviated an n u al m eeting
of th e N ational A ssociation of B ank
A uditors and C om ptrollers, held in
New Y ork City, O ttm ar A. W aldow,
com ptroller, The N ational B ank of De­
troit, w as elected president, to succeed
Cecil W. B orton, vice president, The
Irv in g T ru st Com pany of New York.
Mr. W aldow becam e an official of
th e N ational A ssociation of B ank A udi­
tors and C om ptrollers in Septem ber,
1939, w hen, at th e an n u al convention in
Seattle, W ashington, he w as elected to
th e th en com bined position of secre­
tary -treasu rer. Since th a t tim e he has
successively been elected to each h igh­
er office and recently w as elected to
th e ir h ighest position. P rio r to his
election as secretary -treasu rer in 1939

London: 11 Bircliin Lane, E. C. 3; Bush House, W. C. 2

C ondensed Statem en t o f C ondition, S ep tem b er 3 0 , 1 9 4 2
RESOURCES
Cash on Hand, in Federal Reserve Bank, and
Hue from Banks and B a n k e r s.................................. $
572,129,654.05
U. S. Government O b lig a tio n s ..................................
1,485,418,916.22
Public S e c u r it ie s .........................................................
64,338,760.32
Stock of the Federal Reserve B a n k .............................
7,800,000.00
Other Securities and O b lig a tio n s .............................
22,932,988.88
Loans and Bills P u r c h a s e d .......................................
486,914,874.10
Credits Granted on Acceptances..................................
2,018,658.47
Accrued Interest and Accounts Receivable . . . .
10,731,644.48
Real Estate Bonds and M o r tg a g es.............................
1,749,173.41

2,654,034,669.93
Bank Buildings ...............................................................
Other Real Estate . . . . . . . . . . . . .

10,685,408.19
1,149,092.38

Total R esources................................... $2,665,869,170.50
LIABILITIES
D e p o s i t s .......................................$2,299,847,664.83
Treasurer’s Checks Outstanding
17,553,068.19

$2,317,400,733.02
Acceptances.............................
Less: Own Acceptances
Held for Investm ent.....................

$6,210,247.59
O T T M A R A. W A L D O W

4,191,589.12

Liability as Endorser on Acceptances and
Foreign B i l l s ...............................................................
Federal Funds Purchased ............................................
Foreign Funds B o r r o w e d ............................................
Dividend Payable October 1, 1942..............................
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.

2,018,658.47
71,724.00
52,000,000 00
152,550.00
2,700,000.00

1,098,203.50
10,956,444.99

2,386,398,313.98
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 .........................
19,470,856.52
Total Capital F u n d s ....................

279,470,856.52

Total L ia b ilitie s ........................................ $2,665,869,170.50
S e c u r itie s c a r r i e d a t $ 2 2 2 ,3 4 0 ,2 9 8 .2 0 in th e a b o v e S ta te m e n t a r e p le d g e d to q u a lif y f o r
f i d u c i a r y p o w e r s , t o s e c u r e p u b l i c m o n i e s a s r e q u i r e d b y la w , a n d f o r o t h e r p u r p o s e s .
T h is S ta te m e n t in c lu d e s th e re s o u rc e s a n d lia b i l it i e s o f th e E n g lis h a n d F re n c h B ra n c h e s
a s o f S e p te m b e r 2 6 , 1 9 4 2 , a n d B e lg ia n B ra n c h a s o f O c to b e r 3 1 , 1 9 4 1 .

Member Federal Deposit Insurance Corporation

N orthw estern B anker

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

N ovem ber 1942

he had served for several y ears as n a ­
tional com m itteem an for the Seventh
D istrict.
H is early business experience w as
obtained in th e in d u strial and public
u tility field, and his banking career
began w ith th e H ighland P a rk State
B ank of H ighland P ark, M ichigan,
w here he served in various d ep art­
m ents and w as elected au d ito r in 1927.
W hen the H ighland P ark S tate B ank
becam e a m em ber of the G uardian De­
tro it U nion Group, Incorporated, he
w as tra n sfe rre d to th e g ro u p ’s office
w here he held various accounting ti­
tles, including th a t of com ptroller.
W hen th e N ational B ank of D etroit
w as organized in 1933, he becam e its
au d ito r and held th a t position u n til
Jan u ary , 1941, w hen he w as elected
com ptroller, w hich position he now
holds.

43

Honor Those in Armed Forces

tru s t and banking departm ents. A r­
rangem ents w ere in charge of A rth u r
H. M orstadt, A rth u r C. G randpre,
Charles P. H eilm ann, Theodore M orri­
son and Gordon F. P urtell.
T he following w eek the w om en em ­
ployes w ere en tertain ed at a d in n er at
th e Lake Shore Club, afte r w hich th ey
w ere th e b a n k ’s guests at “Ice Follies
of 1943” at the Chicago Arena.

Undecided
E th y l: “L ast n ig h t Bobbie asked me
to m arry him and m ake him th e h ap ­
piest m an in the w orld.”
M ethyl: “W hich are you going to
do?”

THE
The 38 m en on leave of absence from
th e A m erican N ational B ank and T ru st
Com pany of Chicago serv in g in th e
arm ed forces w ere honored at th e
b a n k ’s an n u al Colum bus Day golf
to u rn a m e n t at T w in O rchard C ountry
Club. A rool of h onor w as dedicated
a t th e d in n er by L aw rence F. Stern,
p resident, and is now on display in th e
b a n k ’s lobby. H. T. Spiesberger, vice
p resident, presided.
Show n here (left to rig h t): Jam es
H Clarke, a ssista n t vice president;
M elvin L. S traus, vice president, and
C harles C. K uning, vice president. Mr.
C larke w rites a m o n th ly in v estm en t
page for th e N orthw estern B anker .
Mr. K uning is w ell-know n in th is area.

L etters from the m en in the service
w ere read at th e dinner. Special leath ­
er booklets, w ith the m en ’s nam es em ­
bossed, w ere prepared and em ployes
w rote individual m essages in them .
A fter photographs tak en a t th e outing
have been inserted, these books w ill
th e n be sent to th e men.
D irectors w ho attended included
Jam es R. B rem ner, vice president,
B rem ner Bros.; W illiam 0. K urtz, vice
president, Illinois Bell T elephone Com­
pany, and Carl S. Lloyd, Chicago a t­
torney.
All m en em ployes of the bank took
p a rt in th e day’s activities, w hich in ­
cluded golf and table ten n is to u rn a ­
m ents and a softball gam e betw een the

PlULIC
N

a t io n a l

IN K

AND
TRUST COMPANY
OF NEW YORK
S e r v i c e — M a in t a in in g an
in tim a te, p erson alized corre­
sp ond en t bank service.

K x |i e r i e i E c e — O fficials w ith
years o f service in this field,
assuring a k n o w led g e o f re­
q u irem en ts and va lu a b le as­
sistance.

BONDS
Public Utility

P o l i c y — T o cooperate w ith
out-of-tow n banks rather than
co m p ete for b usin ess w h ich is
rig h tfu lly theirs.

Industrial
R ailroad
M unicipal

$ 200 , 000,000

A.C.A LLY N a n d C O M P A N Y
ESTABLISHED 1908

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 :

N lilvraukee
W a te r lo o

O m aha
D e s M oin es

B oston
C edar R apids

MEMBER
NEW YORK CLEARING HOUSE ASSOCIATION
FEDERAL DEPOSIT INSURANCE CORPORATION

N orthw estern Banker

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

N ovem ber 1942

COMPLETE

N orthw estern B anker

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

CORRESPONDENT

N ovem ber 19b2

SERVICE

45
m illion dollar m ark. T otal resources
of th e in stitu tio n now are m ore th a n
$1,200,000.
This fact w as released w hen th e
ban k p u t out its sta tem en t of condi­
tion as of October 2, 1942, p u rsu a n t to
a call from th e State B anking De­
p artm ent.

M IN N E S O T A
NEWS
L. O. OLSON
President
M inneapolis

Pioneer Banker Feted
H. L. Shirley, first m ayor of Breckenrid g e and pioneer citizen, w as h o n ­
ored recen tly on th e occasion of his
80th b irth d ay . B orn in N orw ay, th e
pioneer B reckenridge b a n k e r cam e
to th is co u n try w ith his p a re n ts at
th e age of six. T hey hom esteaded east
of R othsay and it w as th e re he w as
m arried to B erth a K aupang in 1886,
m oving to B reckenridge in 1890 w hen
he w as elected re g iste r of deeds.
Tw elve y ears later he organized th e
M erchants State B ank and in 1906
sam e into th e active m an agem ent of
th e F irs t N ational B ank, of w hich
he continues to be president.

Heart Attack Fatal
Ben Lew is H ow ard, 57, cashier of
th e T w in V alley F irs t N ational B ank
for over 30 years, died last m o n th from
a h e a rt a tta c k suffered w hile hun tin g .

Forty Years of Service
T hom as K ierland, 92, one of Rushfo rd ’s oldest residents, com pleted 40
y ears of service as d irecto r of th e F irs t
N ational B ank there.
A dinner, celebrating th e m any
y ears of service, w as given by th e
b an k directors, officers and em ployes
a t th e H otel W inona and a bouquet
of roses w as p resen ted to Mr. K ierland.
He has been a d irecto r of th e b an k
since it w as organized in Septem ber,
1902, and is still active in th e business.

Loan Men Meet
J. H. Billings, associated w ith th e
F ed eral H om e L oan B ank of Des
Moines, addressed a m eeting of th e
D uluth d istric t com m itte of th e M in­
n esota Savings and L oan League at
th e C ham ber of Com m erce room s in
D uluth recently.
D elegates from Cloquet, G rand R ap­
ids and D u lu th w ere p resent.

Ration Coupon Study
W illiam D uncan, Jr., secretary of
th e M innesota B an k ers A ssociation,

Swift County Meeting
W ILLIAM D U N C AN , Jr.
Secretary
Minneapolis

has been appointed to a special A m er­
ican B ankers A ssociation com m ittee
w hich w ill w ork w ith th e Office of
P rice A d m inistration on plans for
clearing ratio n coupons th ro u g h banks,
it has been announced.
The com m ittee w as set up at th e in ­
v itatio n of Price A d m inistrator Leon
H enderson to assist OPA in w orking
out a program w hich w ill achieve the
objectives of th e governm ent and at
th e sam e tim e be practical from th e
po int of view of b an k operations.
F acto rs such as th e grow ing sh o rt­
age of b an k in g m anpow er and inability
of banks to obtain m echanical equip­
m ent for h an dling ex tra w ork, w ill be
ta k en into account.
U nder th e p rogram th e governm ent
contem plates nationw ide use of banks
in clearing coupons to be used in r a ­
tioning gasoline, sugar and o th er prod­
ucts. R eim bursem ent of th e banks
for th e cost of th e ir services is con­
tem plated.

Renews Charter
The F arm ers S tate B ank of R ay­
mond, organized in 1912, has received
approval from th e State B anking De­
p a rtm e n t for th e extension of its ch a r­
te r w hich expires in th e near future.
O rganized in 1912 m ostly w ith W illm ar
capital, th e b an k opened for business
D ecem ber 17, 1912, w ith R ussell Spicer,
president; C. W. Odell, vice president;
and H. C. Feig, cashier.
In 1920, local in te re st purchased th e
control of th e bank, w ith Mr. Feig,
p resident; F ra n k R. H ier, vice p resi­
d en t and W m. J. Johnson, cashier. Mr.
Jo hnson resigned in 1935 and H erb ert
C. Feig, Jr., w as elected to succeed
him as cashier and held th e position
u n til he recen tly resigned to become
Ju n io r B ank E x am in er for th e FDIC
R ussell M. Feig now is cashier, and
Miss E dna H oltz is a ssistan t cashier.

Deposits Over
Million Dollars
F o r th e first tim e in its history,
deposits in th e F a rm e rs State B ank
of M ountain Lake have topped the

M em bers of th e Sw ift County B ank­
ers A ssociation held a m eeting at th e
A ppleton A rm ory last m onth to dis­
cuss problem s of th e trade.
R epresentatives of banks at Benson,
D anvers, M urdock and K erkhoven
w ere present.

Loan Association Meets
D istrict T hree of th e nine d istricts
in th e M innesota F ederal Savings and
Loan A ssociation held its an n u al m eet­
ing at th e A lexandria H otel in A lex­
an d ria last m onth.
V ernon C. W elch, executive vice
presid en t of th e M innesota F ederal
Savings and Loan League, spoke to
th e twenty-five delegates from the
eight associations in th e district. O ther
speakers w ere Mr. S tanton R. Dahlen,
p resident of th e League and Mr. Jo h n
F. Scott, of th e M inneapolis Savings
and Loan A ssociation. A general dis­
cussion, led by C hairm an H ugh Leach,
proved w orthw hile in ad ju stin g diffi­
culties and program s of th e various
associations represented.

Highly Honored
F ra n k P. Pow ers, presid en t of th e
K anabec State Bank, Mora, w ho has
been pro m in en t in state and national
banking circles for m any years, w as
signally honored last m onth by being
elected presid en t of th e state bank
division of th e A m erican B ankers As­
sociation at its m eeting held in New
York City, w hich Mr. Pow ers attended.
He had been serving as vice president.
T his high honor conferred upon a
sm all tow n b an k er by th e state b an k ­
ers of th e co u n try is a fitting recogni­
tion of his o u tstanding ability in his
profession and evidence of th e high
regard in w hich he is held by his b a n k ­
ing associates.

B. G . Schrocder Called
B enjam in G. Schroeder of M inne­
apolis, a w ell know n resid en t of D an­
ube for m any years, died at a M inne­
apolis hospital early last m onth. He
w as 60 years of age.
W hile living in Danube, Mr. Schroe­
der served as cashier of th e D anube
State Bank.

Bankers Host to 4-H
W atonw an County B ankers w ill be
N orthw estern Banker


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

N ovem ber 19^2

46

MINNESOTA
hosts at a free b an q u et at St. Jam es
for 4-H Club m em bers w ho have fin­
ished th e ir projects, 4-H leaders and
parents. T en tativ e dates are N ovem ­
ber 17th and N ovem ber 19th, accord­
ing to plans m ade at a m eeting of the
B ankers A ssociation w ith th e C ounty
E xten sio n A gents.
T he W atonw an C ounty B ankers As­
sociation w as one of th e first associa­
tions in th e sta te to help prom ote 4-H
Club w o rk by p u ttin g on an achieve­
m ent banquet.
One of th e Ju n io r L ivestock trip ­
w inn in g beef calves is purch ased each
year from a different p a rt of th e coun-

NEWS

ty to be used as th e m eat dish at th e
banquet. This y ear th e A ngus calf
show n at th e Ju n io r L ivestock Show
by W illis K uhlm an of th e Peppy Pep­
p ers 4-H Club w ill be purchased by
the B ankers A ssociation for th e b an ­
quet.

Banks Consolidate
T he affairs of th e State B ank of
B eroun and of th e F irs t N ational B ank
of P ine City have been consolidated
and h ereafter p atro n s of th e form er
b ank w ill be served by th e Pine City
institution.

• ---------------- ------------------------------------ -

Capital Increase
Stockholders of th e Red Lake Coun­
ty State Bank, Red Lake Falls, have
unanim ously voted to increase the
capital of th e corporation from $40,000
to $50,000 and th e su rplus from $15,000
to $20,000. T his action w as tak en in
order to m ain tain the desired ratio be­
tw een th e capital stru c tu re and th e
deposits, w hich have steadily increased
to a point w here m ore capital is need­
ed. P resen t stockholders w ere given
30 days in w hich to apply for th e ir
p ro p o rtio n ate am ount of the 100 new
shares th a t are to be issued to provide
th e additional $10,000 capital.

Erickson Elected Director
Sam A. E rickson w as elected a
m em ber of th e board of directors of
th e N ational Citizens Bank, M ankato,
at a m eeting of stockholders held re ­
cently. Mr. E rickson succeeds to the
position on th e board m ade vacant
by th e death of M. D. F ritz.
M em bership of th e N ational Citizens
B ank board now includes Judge S. B.
W ilson, H. A. P atterson, F. G. Thom as,
Mr. E rickson, H arold Bull, p resid en t of
th e b ank and P. R. Kenefick, vice p resi­
dent.

Association Elects

Essential for Victory
Civilians are now asked to reduce meat consumption.
Actual rationing w ill be effective as soon as the mechan­
ics can be worked out. This emphasizes the necessity for
increased production and affords banks an unusual oppor­
tunity to assist in the w ar effort.
Current high prices of livestock create an exceptional de­
mand for feeder financing. O u r service w ill be valuable
to any bank in taking care of the accumulation exceeding
its own requirements as w ell as overlines which may de­
velop.
W e offer a complete correspondent service to country
banks.

The

Stock Yards National Bank
South Saint Paul, Minn.
M EM BER

N orthw estern B anker

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

FEDERAL

D E P O S IT

N ovem ber 19V2

IN S U R A N C E

C O R P O R A T IO N

B.
J. M uus and Dr. A. W. E dm an of
New B righton, attended a m eeting of
the St. Croix Valley B ankers Associa­
tion a t S tillw ater T his association
com prises banks from Chicago, W ash­
ington and R ural R am sey Counties.
Mr. M uus w as elected p resident for the
com ing year, Mr. W arn er of W hite
Bear, vice presid en t and Mr. Carl Nel­
son of Stillw ater, secretary-treasurer.

Columbus Day Outing
The A nnual Colum bus Day O uting
of th e City N ational B ank and T ru st
Com pany of Chicago w as held a t the
M edinah C ountry Club last m onth,
w ith several h u n d red officers and em ­
ployes in attendance.
In th e golf to u rn am en t, the low
gross aw ards were:
M. E. Shanahan, 78; W alter Stringfellow, 86; K asm ir Rosek, 89; R obert
Guess, 90.
Low n et scores were:
Jo h n B. P atterso n , Joseph F. Govan,
Charles S. M acferran and Jo h n B.
L andry.
In addition to golf, th e d ay’s pro­
gram included baseball, tennis, horse­
shoes, bingo and bridge, w ith the
aw arding of prizes and dancing in the
evening.

47

Twin C ity News

E LECTIO N of M. W. T hatcher as a

m em ber of th e board of d irectors
of A m erican N ational B ank, St. Paul,
has been announced by Otto Brem er,
ch airm an. Mr. T h atch er is g eneral
m an ag er of th e F a rm e rs U nion G rain
T erm in al Association.
St. Paul Chapter, A m erican In stitu te
of B anking, has in a u g u ra te d a m ost
in te re stin g sem in ar - lectu re course
on “B anking, B usiness and W orld
E v en ts.”
Open to in stitu te g raduates, senior
em ployes and b an k officers, th e course
is offered in five w eekly lectures.
L ectu rers are George F rogen, of th e
d e p a rtm e n t of social science, W ash ­
b u rn H igh School, M inneapolis, ta lk ­
ing on “J a p a n ”; H erb ert H eaton, p ro ­
fessor of econom ic histo ry , U n iv ersity
of M innesota, “T he F u tu re of B ank­
in g ”; Dr. E. C. Stakm an, chief of the
division of p lan t pathology and botany,
U n iv ersity of M innesota, d ep artm en t
of ag ricu ltu re, “Can L atin A m erica
Supply Our N a tu ra l R ubber N eeds?”;
Dr. P aul Cadman, econom ist of th e
A m erican B an k ers A ssociation, “The
B a n k e r’s R esponsibility in Post-W ar
P la n n in g ,” and Dr. F red R eplogle, di­
recto r of stu d e n t personnel services,
M acalester College, St. Paul, “Voca­
tional G uidance Today.”

By James M. Sutherland

M inneapolis, w as elected national com­
m itteem an.

Sp ecia l C orre spon de nt

and vice presid en t of F irst N ational
Bank, St. Paul, died October 21st, after
a y e a r’s illness.
A civic leader and lifelong resid en t
of St. Paul, he started his banking
c a rre r in 1893 as a m essenger for th e
old N ational G erm an-A m erican Bank.
He w as p ast p resid en t of th e M inne­
sota B ankers A ssociation and of the
St. P aul ch ap ter of A m erican In stitu te
of B anking.
How w est coast banks and b ankers
are operating u n d er w artim e condi­
tions w as studied by A. B. Lathrop,
vice presid en t of F irst N ational Bank,
St. Paul, d uring a 10-day trip to th e
Pacific coast, principally W ashington
and Oregon.
F red R. S ch lich ting, vice p resid en t
of D rovers E xchange State Bank,
South St. Paul, is ch airm an of th a t
com m unity’s com m ittee in th e drive
for funds for th e C om m unity and
W ar Relief Chest.

George Jackish w as elected p resid en t
of th e Tw in City Bond T raders Club,
N o rth w est B ancorporation d irectors
Inc., at th e an n u al m eeting in October.
have declared a dividend of 25 cents
a sh are on th e com m on stock of th e - A ssociated w ith H arris, U pham & Co.,
M inneapolis, Jackish w as advanced
b an k holding com pany, according to
an n o u n cem en t by J. C. Thom son, from vice p resident to succeed Joyce
Finrud of F irs t N ational B ank and
president.
The dividend w ill be paid N ovem ber T ru st Co., M inneapolis.
O ther officers nam ed w ere E. J.
25th, to stockholders of record as of th e
close of business N ovem ber 10th. The K night, W ells-Dickey Co., M inneap­
B ancorporation has 1,551,787 sh ares
olis, vice president; W alter Space,
Thrall-W est Co., M inneapolis, secre­
of stock outstanding.
tary , and A dolph H elfm an, F irs t N a­
R obert W. L indeke, 65, p resid en t of tional Bank, St. Paul, treasu rer. Kerm it B. Sorum of Allison-W illiam s Co.,
F a rm e rs and M erchants S tate B ank

Tw in City ban k ers noted w ith in ­
te re st th e announcem ent th a t H enry
V erdelin, form erly associated w ith
F irs t N ational B ank and T ru st Co.,
M inneapolis, has been com m issioned
a M ajor in the arm y and assigned
to th e price ad m in istratio n board.
F o r th e p ast th ree years M ajor V erde­
lin has been vice p resident and m an ­
ager of th e real estate dep artm en t
of th e M utual Life Insu ran ce Co. of
New York.
The g ran d cham pion hog and the
cham pion pen of th ree ducks at the
an n u al M innesota 4-H Ju n io r L ive­
stock show w ere purchased by N orth­
w estern N ational B ank & Trust Com­
pany at th e auction w hich concluded

the event.
The bank paid $1.50 a pound for the
hog, a D uroc-Jersey raised by Glenn
G underson, St. P eter, and 35 cents a
pound for th e ducks, raised by L aw ­
rence John, Montevideo.
M. O. Grangaard, vice presid en t of
F irst N ational B ank & T ru st Com­
pany, w as ch airm an of th e com m ittee
for th e M inneapolis Civic & Commerce
A ssociation w hich arran g ed to have
M inneapolis firm s w ell rep resen ted
am ong bidders at th e auction.
H enry D. Thrall, presid en t of T hrall
W est Company, M inneapolis in v est­
m ent banking firm, has been nam ed
executive adviser of th e N inth F ed­
eral R eserve D istrict V ictory F u n d
Comm ittee. He has been g ran ted a
leave of absence by his firm to w ork
on his new job, w here he w ill cooper­
ate w ith Paul W . Loudon, executive
m anager of the com m ittee. Loudon
also is an in vestm ent banker, being a
p a rtn e r in Piper, Jaffray & Hopwood.

N orthw estern Banker

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

N ovem ber 19^2

48

Meetins Government Competition
(C ontinued from page 20)
dow n th e stre e t set a b a rre l filled w ith
cheap broom s on th e sidew alk w ith a
big price tag of “39c each.” W e had
some cheap broom s, too, so out on th e
sidew alk w en t a b arrel full of broom s
and a price tag reading “29c each,” u n ­
derselling th e com petitor by price. B ut
w hen th e custom er becam e in terested
in th e b arg ain he n a tu ra lly asked if
th is w as a good broom , to w hich we
said, “Yes, for th e price. B ut if you

W iW

Mmm

really w an t a good broom, here we
have one for 75c, and a b e tte r one for
$1.00.” W hen one cheap broom w as
sold, a dozen good ones w ere sold at
a good profit and m ore satisfaction to
th e p urchaser.
If a borrow er asks for a rate of in ­
te re st on a loan, and th is b an k er states
th a t th e c u rre n t rate is 7 p er cent, if
th e b o rrow er is a shopper, he w ill re ­
spond by saying he can get th is loan
a t 4V2 per cent from th e P.C.A. In
such a case th e b an k er w ill be at a
disadvantage in defending his position
th a t th e 7 p er cent loan in th e bank is
th e m ost desirable, because th e b o r­
ro w er looks upon th a t m erely as a de­
fense. If, on th e o th er hand, in our
plan you can offer the borrow er the

THE BANKER KNOWS
BETTER

Every facility for your
comfort. In the heart of
the loop. New Coffee
Shop and Sandw ich
Bar. Viking Room and
Cocktail Lounge. Con­
necting Garage. Rooms
with lavatory only $2.25

T han a n y o n e e ls e th e difficulties of fin a n c ­
ing h o sp ita l b ills, d o cto r's b ills a n d a ll
the o th er te rrify in g e x p e n s e s of a p ro ­
lo n g e d illn e ss or layoff from a c c id e n ta l
in ju ries.
It is to th e b a n k e r th a t th e
fam ily a p p e a ls for a lo an .

d istre s se d

James L. Gormley • ..aymond K. Swanson

Managers

S u rely , w ith this e x a m p le b e fo re him ,
no B a n k er sh o u ld b e w ith o u t th e p o licies
of th e M in n e so ta w h ich a r e ta ilo r m a d e
to fit h is n e e d s a n d a t th e lo w e st p o ss i­
b le cost.
$2.00 p a y s for a c c id e n t or h e a lth in su r­
a n c e in full to th e 15th of M arch 1943.
W rite for a p p lic a tio n to d a y .

Minnesota Commercial
Men’s Association

Hwra.

R M IIS S O N

WE

ARE

THE

2550 Pillsbury A ve.
M inneapolis, Minn.

PLEASED

TO

A SSO C IA T IO N

L

a e l
W ITH

1 (1 1 5

R. A

W ITH

US

OF

b b o t t

O FFIC E S

P IO N E E R

ANNOUNCE

AT

B U IL D IN G

ST. P A U L

J . M. D

a la a

Co m pa n y

M IN N EA PO LIS

N orthw estern B anker

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

N ovem ber 1942

choice of e ith er 4% p er cent in the
A g ricultural Credit A ssociation, or 7
p er cent in th e bank, th e borrow er will
face the problem w ith an open m ind.
A loan officer w ith a little salesm an­
ship certain ly can show a borrow er
th ere are m any advantages of borrow ­
ing m oney direct from th e bank, as
com pared to lots of red tape, legal restrictions, and req u ired rep o rts w hich
are connected w ith an y tran sactio n
w ith a governm ental agency. As con­
crete evidence th a t the above is our
actual experience, I subm it to you our
bank statem en t show ing th a t we have
a t th e p resen t tim e $536,053 loans at
an average in te re st rate of 7 p er cent,
and our C redit A ssociation statem en t
show ing we have $73,123.50 a t 4% per
cent. It takes courage to believe this,
b u t we invite any read er to inspect our
books if th ere is any doubt in th e ir
m inds as to the tru th of these sta te ­
m ents.
M any ru ra l banks are now cutting
the in te re st ra te on all th e ir b arn y ard
loans in an atte m p t to m eet P.C.A.
com petition. T his is a trem endous sac­
rifice of needed incom e to any bank.
W e w ere so com pletely sold on this
arran g em en t th a t we spent our own
tim e and m oney, and w ith the full co­
operation of Mr. D uncan, secretary of
the M innesota B ankers A ssociation,
we secured th e passage of a bill in the
state legislature m aking capital stock
of A g ricultural C redit A ssociations le­
gal in vestm ent of b ank funds up to 10
per cent of its capital. T he object of
th is legislation w as to provide a m eans
w hereby banks in any county or trade
com m unity m ight have the advantage
of an A g ricu ltu ral Credit A ssociation
w ith o u t calling on b ank stockholders
to fu rn ish the capital, as w as th e case
w hen we organized our ow n associa­
tion. If ban k ers in M innesota had
tak en advantage of th is opportunity, it
is our opinion th a t th ere w ould be no
need to w o rry about P.C.A. com peti­
tion. The lack of in te re st in th is m a t­
te r on th e p a rt of the b an k ers in this
state has been a keen disappointm ent.
W e do, how ever, have tw o o th er banks
in th e state operating u n d er this sug­
gested arran g em en t th a t are doing a
flourishing business and w ould not
th in k of liquidating th e ir C redit Associations.
In conclusion let us say th a t an
A g ricultural C redit A ssociation oper­
ated as above suggested could be com­
pletely liquidated on v ery sh o rt notice,
because all of its assets w ould have an
im m ediate m ark et at p ar value. The
F ederal In term ed iate C redit B ank in
y o u r F ederal R eserve d istrict w ill give
you full p articu lars on how to organize
an A g ricu ltu ral Credit A ssociation. We
have found th e F ederal In term ed iate

,

r

t

-*

,

<

*

49

•MINN ESOT A NEWS*
C redit B ank of St. Paul, M innesota,
w hich serves our district, v ery cooper­
ative and p leasan t to deal w ith. T hey
have w elcom ed th e business we have
given th em and have given us p ro m p t
and efficient service.— T H E E N D .

N EW S A N D VIEW S
(C ontinued from page 22)
P ennsylvania; V ictor Cullin, M ississip­
pi V alley T ru s t Com pany, St. Louis;
John deL aittre, F a rm e rs an d M echan­
ics Savings B ank, M inneapolis; S w ayn e
P. G oodenough, Lincoln-A lliance B ank
& T ru s t Com pany, R ochester, New
York; Robert L indquist, A m erican N a­
tional B ank & T ru st Company, Chica­
go; Thoburn M ills, The N ational City
Bank, Cleveland; D udley L. Parsons,
The New Y ork T ru s t Com pany, New
Y ork City; E. A. P ierce, M errill Lynch,
F e n n e r & Beane, New Y ork City;
Ju liu s J. Spindler, F arm e rs & M er­
ch an ts B ank, H ighland, Illinois; G.
L o m e Spry, T he C anada T ru s t Com­
pany, London, O ntario, Canada; E. P.
Taliaferro, F irs t N ational B ank, T am ­
pa, Florida; George W ilshire, F irs t N a­
tional B ank & T ru st Com pany, New
H aven, Connecticut; K. W in slow , Jr.,
Seattle T ru st & Savings Bank, Seattle;
M iss M. M. W oltjen, M utual B ank &
T ru st Com pany, St. Louis.
K atherine M orrison, d au g h ter of H.
G. M orrison, cashier of th e P eterso n

S tate B ank, P eterson, Iowa, w as one
of th e first young ladies from eastern
Iow a to join th e W AVES.
She is now a t N ortham pton, M assa­
ch u setts, ta k in g h e r train in g . Miss
M orrison g rad u ated from M orningside
College, Sioux City, and took ex tra
w o rk a t Iow a U n iv ersity an d M adison,
W isconsin. She ta u g h t school for a
w hile a t M anchester, Iowa, b u t m ore
recen tly w as se cretary to th e m an ag er
of th e loan d e p a rtm e n t of th e E q u i­
table Life Society of th e U nited States
a t Cedar Rapids.
E. F. Sorg, p resid en t of th e F a rm e rs
S tate Savings B ank of Independence,
Iowa, in a recen t le tte r to th e N orth w e s t e n B anker , said, “The October is­
sue of th e N or thw estern B anker is
certain ly a sw ell n u m b er and con­
tain ed a lot of fine read in g m aterial
and w as v ery a ttra c tiv e ly arran g ed .”

Living on Fat?
C onsum er cred it helped to build th e
roll of fat upon w hich we m u st now
live for th e duratio n . A fter th e w ar
consum er cred it can be useful to a de­
gree n ev er heretofore realized, accord­

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

ing to th e official m onthly b u lletin of
the C onsum er B anking Institu te.
“P rio r to P earl H arbor, A m erican
consum ers had been accum ulating all
m a n n er of durable goods—refrig era­
tors, vacuum cleaners, sew ing m a­
chines, fu rn itu re, electrical appliances
and autom obiles,” s a y s Consum er
Credit. “W ith th e change from de­
fense to w ar, m any durable goods have
gone entirely out of production, and
m any m ore are on th e ir w ay out.
“T his m erchandising of irrep lace­

able inventories constitutes first phase
of our program of ‘living on fat.’ W hen
it is com pleted no m ore stocks of new
goods w ill be available. T hus th e sec­
ond phase of depreciation sets in to
become a m uch tig h te r ‘living on fa t’
period.
“D epreciation refuses to w ait for us
to fight a w ar. M achinery w ill w ear
out and eventually be scrapped. New
replacem ents are already h ard to ob­
tain. A long w ar will m ean a su b stan ­
tial accum ulation of unreplaced w ear

The products of seed an d soil have always
b een essential to the sustaining of hum an life.
. . . In the present Defense em ergency Minneapolis-Moline M odern Farm Machines are
helping to keep this essential flow of food and
fibre uninterrupted. . . . But the call is for in­
creased production on ALL farms; and here
the local banker and MM Dealer have a con­
tribution to make. By extending "credit" to
deserving farmers for more MM machines
w here needed, the farm hands being with­
draw n for Defense can be replaced and yet
production stepped up to maximum. . . . The
MM line of tractors and machines is one of the
most complete and most modern in the world.
By putting more of this power to work you will
not only be helping Uncle Sam but helping
yourself and stimulating business for your en­
tire community. . . . To those who do not need
new M achines this year we suggest that you
encourage them to keep their m achines in
good repair and buy needed parts early.

50

• MINNESOTA
and tear. Consum ers w ill have dieted
aw ay m ost of th e ir durable goods fat
and w ill be eager to restock. T hrough
existing consum er cred it facilities con­
sum ers w ill th e n be able to b u y again
th e m any durable goods w hich are
associated w ith high A m erican sta n d ­
ards of living.”
H ow ever, C onsum er Credit cautions
th a t th e con trib utio n of consum er
credit to th e w ar effort and fate of th e
en tire fight ag ain st inflation can be
successful only if rigid controls are
applied universally.

NEWS

“Because inflation is a m o n etary p he­
nom enon,” says C onsum er Credit, “it
can develop out of all form s of m one­
ta ry transactions. A few sm all excep­
tions to univ ersal application of rigid
economic controls can defeat th e w hole
pro g ram and open th e flood gates of
inflation.”
R eg istrar (to y o uthful bridegroom ):
“The young lady is not a m inor, is
she?”
Bridegroom : “Oh, no; she w orks in
a b eau ty parlo r!”

L E G A L DEPARTMENT
(C ontinued from page 18)
W as he holding such proceeds as a
constructive tru s t for Maxwell?
Yes. The con stru ctive tru st w hich
arises in the circum stances outlined
in clu d es the proceeds of the property.

Abbott to Represent
J. M. Dam
J. M. Dain & Com pany of M inne­
apolis have announced th e association
w ith th a t com pany of Lael R. Abbott,
who w ill rep resen t them in the city of
Saint P aul and in Iowa.
Mr. A bbott w as form erly connected
w ith H arold E. W ood & Com pany of

"T h e B a n k a t th e Y a rd s”

"It D idn't Just H appen' !
It didn't just h a p p en — that this bank h a s built up
such a large correspondent clientele in the four
states w e serve!
It w a s no accident that the founders of this
institution ch o se the stock yards a s its banking
hom e!
Careful p lanning h a s built this bank— plus prompt
service on live stock, h a y and grain items, plus our
ability to serve on ALL Sioux City business. Try
us for this PLUS service on your Sioux City items.
O F F IC E R S
C. L. Fredricksen, President
M. A. W ilson , V ice President
W. G. N elson, A ssista n t V ice President
W . C. Schenk, Cashier
H. C. L induski, A ssista n t Cashier
C. L. Adams, A ssista n t Cashier
J. S. Haver, A ssista n t Cashier
Jam es L. Sm ith, A uditor

D IR E C T O R S
C. R. M cK enna, Pres., Johnson B isc u it Co.
B. L. Sifford, A ttorney, Sifford & W adden
G. F. Silknitter, President, Sioux City
>
Stock Yards Company
C. L. Fredricksen, President
M. A. W ilson , V ice President
H. C. B osw ell, Secretary-Treasurer,
W estern Contracting Corporation

M em b e r F e d e ra l D e p o s it I n s u r a n c e C o rp o ra tio n

L IV E S T O C K
NATIONAL
B A N K
N orthw estern B anker

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

N ovem ber Í9Y2

L A E L R. A B B O T T

Saint Paul. P revious to th a t tim e, he
rep resen ted various financial in stitu ­
tions, including the H a rris T ru st &
Savings B ank and th e C ontinentalIllinois N ational B ank & T ru st Com­
pany.
Mr. A bbott has been actively en­
gaged in th e securities business since
1922 and is well and favorably know n
to hu n d red s of ban k ers and investors
th ro u g h o u t Iow a and the m iddle w est.

On Y our Own
The bully rolled up his sleeves and
backed aw ay from th e crowd.
“A ny tw o m en who w an t to fight
step out h ere,” he roared.
Two huskies finally stepped forw ard.
“Now you tw o fight it o ut,” and he
calm ly w ithdrew .

51

SOUTH
DAKOTA
NEWS
H. N . THOMSON
President
Presho

Bank Loses Men
T he N o rth w est S ecurity B ank of
G regory w ill lose all of its young m en
to th e m ilita ry service. T hey are:
D w ight K endell, M arvin D rees and
Jo h n Sully, all called, and F ran cis
L ongen and A lbert F ra n k s, w ho w ill
leave soon. B ank officers gave th e
d ep artin g young m en a d in n er and
p resen ted each w ith a gift.

Police Bank Loans
S u p erin ten d en t of B anks E rlin g
H augo urg ed South D akota b a n k ers to
exam ine closely all applications for
sm all loans w ith respect to com pliance
w ith th e federal reg u latio n s concern­
ing in sta llm e n t credit, a fte r co nferring
w ith F ra n k S precher, rep re se n ta tiv e
of th e F ed eral R eserve B ank of M in­
neapolis.
E x am in ers and m em bers of th e
b an k in g com m ission p articip ated in
th e conference relativ e to policing
b an k loans in th e state.

Bankers Meet
H en ry Gross, F re d Grosz, A. C. M er­
kel and Cecelia K rause of Bowdle, ac­
com panied A lbert H aerter, of H osm er,
to Mobridge, w here th e y atten d ed th e
D istrict B an k ers m eeting. W. C. Rempfer, of P ark sto n , w as th e principal
sp eak er of th e pro g ram and discussed
Service C harges and w h at th e w ar
m eans to th e b an k ers and th e ir b u si­
ness m ethods.

Directors Meet
The re g u la r m o n th ly m eeting of
th e directo rs of th e B ank of K im ball
w as held a t K im ball last m onth. The
follow ing d irecto rs w ere p resen t:
Lloyd C ronholm of Ipsw itch, L. M.
L arsen of W essington Springs, Mrs. J.
H. D rips of G ann Valley, and R. A.
John so n of Kimball.

Attend Clinic
Iren e G. Olson, E ugene Liedle and
E ugene H errboldt, all officers of th e
E u re k a S tate B ank, w en t to M obridge
to a tte n d a clinic conducted by th e

GEORGE M. STARRING
S«cretary-Treasurer
Huron

state b ank m anagem ent com m ittee.
The clinic is held for b ank officers
to assist th em in adju stin g th e ir in ­
stitu tio n s to a w artim e basis.
H a rry B. Dowdell and wife arriv ed
in W hitew ood from Ipsw itch early
last m onth. Mr. Dowdell succeeded
P. L. Crowlie as liquidator for the
W hitew ood and St. Onge closed banks,
re p resen tin g th e F ed eral Deposit Cor­
p oration as receiver for these tw o
tru sts.
Mr. Crowlie is leaving th e em ploy
of th e FD IC to en ter o th er business
a t H uron.
Mr. Dowdell states he has em ployed
M arie Musso of Lead as stenographer
and bookkeeper, and asks th a t anyone
h aving business w ith th e St. Onge or
W hitew ood banks, call at his office in
W hitew ood, as he is anxious to w ind
up th e affairs of both banks as soon
as possible.

A N EW M ARKET FO R
CA SU A LTY C O V ER A G E
(C ontinued from page 38)
negligence of its serv an ts in failing to
m ain tain such lights.
A nother in terestin g item is in con­
nection w ith o w ners’, landlords’ and
te n a n ts’ coverage; w here a building
has been dam aged by enem y act w hich
increased th e hazard of the risk to the
public, in ju ries im m ediately follow ing
th e dam age w ould probably be w ar in ­
ju ry b u t if for reasons beyond the con­
tro l of the in su red the p ro p erty is not
p u t in good shape, th e passage of tim e
w ould not m ean th a t w ar w as the
cause of th e in ju ry . In these cases I
u n d erstan d th e com panies advise the
in sured th a t unless th e building is p ut
in shape, or so guarded th a t th e ap­
proaches to th e building keep th e pub­
lic aw ay from the dangers, the in su r­
ance w ill be cancelled w ith in 30 or 60
days.
In th e case of obstructions in the
roadw ay or on pavem ents, such as
sandbags or air raid shelters, th e
courts are inclined to take the view

th a t th e public m ust take th e roads as
th ey find them .
B oth b u rg lary and plate glass poli­
cies in E ngland have a w ar risk ex­
clusion clause. In th e U nited States
we do not have th is in our residence
b u rg lary or plate glass policies. H ow ­
ever, you m ay be in terested to know
th a t th e A ssociation of C asualty and
S urety E xecutives is now endeavoring
to w ork out a rein su ran ce program for
w ar dam age to plate glass w ith the
W ar Dam age C orporation. T here is
one v ery definite th in g th e casualty in ­
surance com panies m u st do and do
well, and th a t is to properly service
(and by th a t I m ean inspection as well
as o th er service) and m eet th e ir obli­
gations to policyholders as w ell as
keep dow n expense. “We will, we
can, we m u st” and we are going to,
because w hen th e w ar is over th ere
will be thousands and thousands of
civilian em ployes of th e governm ent
w ho in seeking to keep th e ir jobs will
m ake every effort to take over private
en terp rises of m any types and one of
th e juiciest plum s w ould be th e in su r­
ance com panies.— TH E EN D .

Coverage Offered to Banks
F o u r types of w ar dam age insurance
coverage, all w ith in one policy, w ill be
offered to banks sh o rtly by th e W ar
Damage C orporation th ro u g h casualty
and su rety com panies, according to the
In surance and P rotective Com m ittee of
th e A m erican B ankers Association.
A nnouncem ent of th e new policy
follows several m onths of cooperative
effort betw een th e A. B. A.’s Insurance
and P rotective Comm ittee, th e WDC
and in su ran ce com pany executives.
L ast m onth th e WDC placed into ef­
fect insurance coverage for registered
m ail and express shipm ents of m oney
and securities. T he new four-coverage
policy is separate and d istin ct from
th is previously announced policy.
'To provide WDC coverage against
loss of m oney and securities on in ­
su red prem ises and in tra n s it by m es­
senger req u ired th e draftin g of a new
policy and application,” the com m ittee
states in th e c u rre n t issue of its P ro ­
tective B ulletin.
“T his policy will
cover th e sam e hazards as o th er WDC
insurance contracts, nam ely, dam age
and d estruction resu ltin g from enem y
attacks, including any action tak en by
th e m ilitary, naval or air forces of the
U nited States in resisting enem y a t­
tacks.
“T his policy is expected to cover ex­
posures at specified locations and in
tra n s it (other th a n by registered mail
or express) up to th e am ounts of in ­
surance purchased. In th e event of
loss, how ever, th e effective am ounts
N orthw estern Ranker


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Federal Reserve Bank of St. Louis

N ovem ber t9b2

52

r
NEW PAY ROLL CHECKS
New pay roll deductions are con­
templated and your customers will,
in many instances, require new pay
roll checks after the first of the year.
As this is written, we don’t know
whether there will be one or more
additional deductions. Perhaps there
will be but one, possibly identified
as “Income Tax Deducted at the
Source”, or, maybe it will be “Vic­
tory Tax Deduction” .

cient time to make necessary changes.
For the past month, any orders we
get which fill up all the available
deduction spaces on the pay roll
stub, are held up until we can com­
municate with the bank so that the
customer can be advised about the
new contemplated deductions. We
suggest to all banks that they get
in touch with their business accounts
on this particular point.

O f course, a good many of your
We would be more than pleased to
business accounts already use pay
furnish statement enclosures display­
roll checks that have extra spaces
ing up-to-the-minute pay roll checks
on the employees’ stub and if so,
there will be no need for
which banks can include with
their November 30th
changing their checks. On
statements. Write for
the other hand, a great
many already are using
whatever quantity you
all available deduction
need and w e w ill
spaces and they should
supply you promptly
De Luxe
without charge.
be informed in suffiCHECK PRINTERS
cßnc.

Manufacturing Plants at
NEW YORK

CLEVELAND

KANSAS CITY

of in surance w ill be reduced by any
loss paym ents.”
R ep resentatives of casualty and
su re ty com panies w ill be authorized
to accept prem ium s and issue policies
covering both m oney and securities,
and the four classifications of coverage
w ill be determ ined by th e location of
th e m oney and securities. These four
classifications are expected to be as
follows:
A. W hile w ith in a “p re fe rred ” vau lt
on prem ises designated in th e schedule
w hich is p a rt of th e policy application.
B. W hile w ith in any safe or vau lt
regardless of p referred classification as
show n in th e schedule.
C. W hile w ith in the prem ises show n
by th e schedule, including safes and
vaults.
D. W hile in tra n s it or otherw ise o ut­
side of prem ises defined in th e policy,
for any business reason.
“Because of th e g reater salvage pos­
sibilities th ro u g h replacem ent th e
rates on securities coverage w ill be
low er th a n those w hich apply to cover­
age of m oney,” th e B ulletin states.
“B anks w ith v au lts w hich do not
m eet th e ‘p re fe rred ’ specifications will
not qualify for coverage ‘A’ b u t can
secure WDC protection un d er coverage
‘B’ at h igher rates.
“The am ounts of coverage u n d er ‘B’
and ‘C’ m ay be cum ulative w hen
m oney and securities are m oved into
a safe or a v au lt of less th a n preferred
quality, for exam ple, at th e close of a
business day or because of an air raid
alarm . Likew ise, th e am ounts of cov­
erage u n d er ‘A,’ ‘B’ and ‘C’ m ay be
cum ulative w hen m oney and securities
are m oved into a v au lt of p referred
q u ality .”

L ike a Fox
The old lady, visitin g an insane
asylum , observed th e lunatics at w ork.
One m an w as standing in th e corner
idle.
“My good m an,” inquired th e O. L.,
“w hy don’t you work? A ren ’t you
crazy?”
“Yes, m um , b u t not th a t crazy,” the
m an replied.
Wiih the rejuvenating mineral waters,
;i|:;|;i:|°und here at America’s greatest spa
. every thrilling
activity of the
fall season is waifirjg: to be enjoyed by
Elms Hotel guests. Write today for de'. $cri£live literature, .

EXCELSIOR
SPRING S.Mft
N orthw estern B anker

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

N ovem ber 1942

Said the Censor
A soldier’s sw eeth eart w as consoled
w hen th e m ailm an handed h e r a
letter addressed in th e fam iliar h an d ­
w ritin g after she had w aited w eeks
to h ear some new s and had all b ut
given up hope th a t he still cared for
her.
She tore open th e envelope fra n ti­
cally and pulled out a slip of pap er on
w hich w as w ritte n these w ords: “Your
soldier still loves you, b u t he talk s
too m uch.”

A

53

1, 1912, has resigned his position, and
has accepted a position in th e office
of th e Coghlan C onstruction Co., w o rk ­
ing on the A laskan highw ay.
C harles E. F oy of M inneapolis has
tak en over Mr. H jelt’s position in the
bank. Mr. F oy has been em ployed in
th e credit d ep artm en t of th e F irst
S e r v i c e C orporation, M inneapolis,
since May, 1941, and has h ad 10 y e a rs’
experience in co u n try banks.

NORTH
DAKOTA
J. O. M ILSTEN
President
Belfield

NEWS

C. C. WATTAM
Secretary
Fargo

North Dakota Groups Meet

Minto Banker Retires

Jo h n G raham of B ism arck, state
b an k exam iner, outlined n ecesary
changes in th e sta te b an k in g law s
and m ade observations on th e w ar
effort a t a series of group m eetings
sponsored th e p ast m o n th by th e
N orth D akota B an k ers A ssociation.
M aking th e circu it w ith G raham
w ere C. C. W attam , se cretary of th e
A ssociation; C larke B assett, vice p resi­
d en t of th e M erchants N ational Bank;
H. D. Crosby, vice p resid en t of th e
F irs t N ational B ank and T ru st Com­
pan y and A. T. R ussell, p resid en t of
Russell-M cN air Company.
Officers of th e vario u s groups w ere
elected a t each m eeting. The South­
east u n it m eeting at V alley City elected
G. A. K lefstad of F orm an, president;
J. C. H offert of C arrington, vice p re si­
dent; R. M. H ougen of V alley City,
secretary -treasu rer; A. C. B row n of
H annaford, m em ber of th e state nom i­
n a tin g com m ittee and Sharp P reu tz
of Kulm , m em ber of th e executive
council.
M eeting at D evils Lake, th e N o rth ­
east G roup chose O. C. S tu sru d of
Mayville, p resident; F. C. G ustafson
of G rand F orks, vice p resident; T. L.
R ash of G rafton, secretary -treasu rer;
H. E. E n g e sa th e r of P etersb u rg , nom i­
n atin g com m ittee m em ber and A rnie
G regor of Leeds, executive council
m em ber.

A. E. McKay, b an k er at M into for
th e last 38 years, recently retired . At
th e tim e of his re tire m e n t he w as
p resid en t of th e in stitution.
The son of W illiam McKay, who
first cam e to M into in th e ’70’s, he
sta rte d w orking in th e B ank of Minto
u n d er M. S. Titus, presid en t at th a t
tim e. He succeeded in w orking up
to a ssistan t cashier, cashier and th en
president.

T he N o rth w est G roup m et at M inot
and selected O. N. Stenehjem of W at­
ford City, presid en t; W. P. Cam pbell
of D unseith, vice p resident; T. A. Solheim of M inot, secretary -treasu rer;
W. E. Tooley of M inot, n om inating
com m ittee m em ber, and C. P. Kjelstru p of M inot, executive council m em ­
ber.
A t th e B ism arck m eeting of th e
S outhw est G roup, F. B. H eath of Bis­
m arck w as nam ed p resident; P. J.
E d k in s of Beach, vice p resident; I. E.
Giedt of R ichardton, secretary; A. A.
M ayer of B ism arck, tre a su re r; G. A.
L e n h a rt of H azelton, n o m in atin g com ­
m ittee m em ber and H. C. B ow er of
R egent, executive council m em ber.

Irish to Aid Navy
F. A. Irish, p resid en t of th e F irst
N ational B ank & T ru st Com pany of
Fargo, has been appointed vice ch air­
m an for N orth D akota to form a com­
m ittee of civilians to aid in th e p ro ­
cu rem en t and review of candidates
for n avy com m issions from civilian
life.
Irish w as asked to nam e tw o other
com m itteem en, and appointed R alph
R. Borm an, p resid en t of th e Fargo
R o tary Club and C. O. F ollett, p resi­
d en t of Sm ith, F o llett & Crowl.

Cashier Leaves for Army
Joe Thom as, cashier of th e Stock
G row ers B ank of Napoleon, has been
inducted at F o rt Snelling.
Mrs.
T hom as w ill s ta rt w orking in the local
bank.

Shows Footings of
One Million
F o r th e first tim e in h isto ry a H et­
tinger, N orth D akota b ank—The F irst
N ational—show s footings of one m il­
lion dollars. Im proved business and
ag ricu ltu ral conditions account for th e
heav y increase in business done by
th e bank, officials say. Officers are
H. W. C larkson, Buffalo, South Da­
kota, president; L. V. Skoglund, ex­
ecutive vice p resid en t and L. C. Mensing, cashier.

Bank Changes
Oscar H jelt, cashier of th e R olette
C ounty B ank of Rolla, since 1925, and
an em ploye of th e b an k since M arch

McLellan A ccepts
Government Position
A drian M cLellan, a ssistan t tru s t of­
ficer for th e M erchants N ational B ank
and T ru st Com pany of Fargo, since
1939, has gone to W ashington to ac­
cept a governm ent position.
M cLellan, form erly of Larim ore,
N orth Dakota, w as grad u ated from
th e U niversity of N orth D akota law
school in 1939 and im m ediately fol­
low ing his adm ittance to th e b a r he
becam e affiliated w ith th e M erchants
Bank. He has been active in civic
and b anking circles in Fargo, having
served as tre a su re r of th e Ju n io r
C ham ber of Commerce, vice p resident
and in stru c to r for A. I. B., b ank em ­
ployes organization. He is a m em ber
of th e Cass County B ar Association.

Dates Advanced
R esponding to a p ersisten t urge from
th e secretaries of th e State Associa­
tions included in th e C entral States
Conference, H a rry C. H ausm an, the
presid en t of th e conference, has ad­
vanced th e an n u al m eeting date, w hich
w as originally scheduled for nex t
M arch, to th e 7th and 8th of Decem­
ber, th is year.
The conference w ill be held a t th e
P alm er House, Chicago, on those dates
and it is anticipated th a t th e program
w ill provide for a full discussion of all
th e p resen t and anticipated fu tu re
problem s of banking.
The officers of th e conference, in
addition to th e president, are: R obert
E. W ait, L ittle Rock, A rkansas, first
vice president; W illiam B. H ughes,
Omaha, N ebraska, second vice p resi­
dent, and F ra n k W arner, Des Moines,
Iowa, secretary-treasurer.
T he S tate A ssociations included in
th e conference are: A rkansas, Illinois,
Indiana, Iowa, K ansas, M ichigan, M in­
nesota, M issouri, N ebraska, N o rth Da­
kota, Ohio, Oklahoma, South Dakota,
Texas and W isconsin.

Or H am
“Some m en th irs t after fame, some
after money, some afte r love.”
“I know som ething all th irs t after.”
“W hat is th a t? ”
“Salt h errin g .”
N orthw estern Banker


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Federal Reserve Bank of St. Louis

N ovem ber 1942

54

W h at is an id ea w o rth ?
T h e r e have b een ideas d e v e lo p e d w hich w ere w orth h u n d red s,
th o u sa n d s, y e s — m illio n s o f dollars to ban k s. T h e id eas, lik e g o ld ,
are w h ere yo u fin d th em .
TH E FINANCIAL A D V E R T IS E R S ASSO C IATIO N is e sse n tia lly
an id ea o rgan ization . N o m an or w om an can he su ccessf ul in p u b lic
re la tio n s, new b u sin ess d e v e lo p m e n t or bank ad v ertisin g w ith ou t
id eas w h ich are practical and in c o m e -p r o d u c in g .
★

★

★

M em b ersh ip in th is n o n -p ro fit org a n iza tio n ranges fr o m $ 2 4
to $ 1 0 0 based on th e ca p ital and su rp lu s o f the in d iv id u a l bank.
•

ou t o f a sso cia tio n w ith 6 5 0 m em b ers

•

out o f th e w ealth o f m aterial p ro v id ed by th e
A ssociation

•

out o f th e tre m e n d o u s fa c ilitie s o f T h e C entral
O ffice o f th e A sso cia tio n

it w o u ld he a p o o r id ea, o b ta in ed in th e c o u r se o f a year w h ich w ou ld
n o t pay a h a n d so m e retu rn on th e co st o f m em b ersh ip .
W h y no t w r i t e t o d a y f o r f ul l details to

FINANCIAL

ADVERTISERS

PRESTON E. REED — EXECUTIVE VICE-PRESID ENT

ASSOCIATION
231 S. LA SA LLE S T .— C H IC A G O

A n o n - p r o f i t o r g a n i z a t i o n for t h e b e t t e r m e n t of a d v e r t i s i n g . . .
publicity . . . new busi ness methods . . . public relations

N orthw estern Banker

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

N ovem ber 1942

55

IO W A

y ear as vice presid en t of th e City N a­
tional B ank in W ichita Falls. He likes
Texas v ery m uch and is v ery proud
of the $11,000,000 ban k w hich he
serves.
H ow ever, he said it w as m ost de­
lightful to be back in his native state
of Iow a to see his m any friends here.

N EW S

B. A. G R O N STA L
P re s id e n t

FRA N K W ARNER
S e c re ta ry

Council Bluffs

Des M oines

Bankers Discuss Current Financial
Problems at Iowa Convention
(C ontinued from page 17)
and th e n to Council Bluffs. In the
m eantim e he has been on th e execu­
tive council of th e A m erican B ankers
A ssociation and is now a m em ber of
th e State B anking Board.
B ert, w ho w ill now be th e 60th p resi­
dent of th e Iow a B an k ers A ssociation,
had his n om ination seconded by Guy
B u tts, Bob Turner, Ed. S. Ebersole,
Charley M cK instry and W ayne Currell.
C harles C. K uning, vice president,
and Jam es H. Clarke, a ssista n t vice

presid en t of th e A m erican N ational
B ank & T ru st C om pany of Chicago,
w ere hosts at th e ir an n u al b reak fast
p a rty for Iow a b an k ers d u rin g th e
convention. T his is alw ays a m ost en­
joyable occasion and, as usual, ev ery ­
th in g from orange juice to bacon and
eggs w as delightful, delicious and de­
lectable.
F rank W arner received com plim ents
on every h and for th e splendid w ar
w ork pro g ram w hich he arranged.
T he speak ers w ere excellent and the
b an q u et w as a huge success. Leo T.
C row ley said, “I have alw ays adm ired
yo u r secretary and his excellent abil­
ity .”
The A ssociation d u rin g th e year, ac­
cording to th e se c re ta ry ’s financial
statem en t, collected dues of $32,322

consisting of $30,955 from th e Iowa
B ankers A ssociation, $1,367 from the
Ju n io r B ankers Association. The As­
sociation also has on han d U. S. Sav­
ings bonds am ounting to $22,500 and
U. S. W ar Savings bonds, Series F, of
$1,480, plus cash w ith th e tre a su re r
and in th e p etty cash account of $15,229 or a total of $39,209 of bonds and
cash on hand.
T he total reg istratio n at th e conven­
tion w as 1,058 of w hich num ber 354
w ere the ladies.
Chris H. M egorden, cashier of the
W aukon State Bank, w ho w as elected
vice p resident of th e Iowa A ssociation,
in m aking his acceptance address, re ­
ferred to his son w ho has recently en­
te re d th e service, and he is Dr. W illiam
H. M egorden w ho is stationed at Og­
den, U tah, in the Medical Division of
th e A rm y A ir Corps.
H oyt R. Young, last year vice p resi­
d en t of th e Iow a B ankers A ssociation
and now a full fledged Texan, w as a
m ost welcom e guest at the Iow a con­
vention. He and Mrs. Young w ere at
th e Des M oines m eeting com bining
th is gala occasion w ith several days
spent at Iowa City, and also to th e ir old
hom e at A rlington, Iowa. Mr. Young
w en t to W ichita Falls, Texas, last

Carl F redricksen, p resid en t of the
Live Stock N ational B ank of Sioux
City, considered him self fo rtu n ate in ­
deed to a tten d and enjoy th e Iow a con­
vention. Carl ju st recently recovered
from an attack of pneum onia. He
spent several days in th e hospital, b u t
looks hale and h e a rty in spite of it.

F rom the City N ational B ank of
Clinton, H en ry Kram er w as th e b an k ’s
convention delegate th is year. Ed.
W arner, president, and Bruce T ow n­
send, executive vice president, w ere
both unable to get aw ay for th e Iowa
m eeting. H en ry rep o rts th a t Clinton
continues to th riv e and prosper w ith
its various new industries. Also, the
new 1,500 bed governm ent hospital
being b u ilt there, is nearin g com ple­
tion and th is is pouring m any dollars
into C linton business channels.
R egistration this y e ar w as b eauti­
fully handled as u sual—and by m ost
beautiful girls. The girls w ere from
th e com m ercial classes at D rake U ni­
v ersity.
O rdinarily th e dow ntow n
business schools handle such re g istra ­
tion, b u t th is y ear th e y w ere unable
to provide th e “w om en pow er” for this
im p o rtan t work.
A lbert H alvorson, cashier of th e St.
A nsgar Citizens State Bank, c ertain ­
ly has am ple reason to be tre m e n ­
dously proud of his talented young
daughter, Laura.
M iss H alvorson
sang th ree delightful num bers a t the
M onday evening banquet. She has a
charm ing voice and had already estab­
lished h er m usical rep u tatio n am ong
th e m any Iow a b ankers w ho heard
h er sing th is spring at th e annual
m eeting of Group 3.

Still an o th er accom plished m usician
appearing on the b an quet program w as
(T u rn to page 58, please)

S carborough ¿¿(Company
First National Bank Building. Chicago

Horace A. Smith, Iowa Representative
Des Moines. Iowa

N orthw estern Banker

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

N ovem ber 1942

Providing more food for Fighters
r p

HE fa rm e r is A m e ric a 's so ld ie r of th e soil. In a n s w e r to c o n s ta n t grow in g d e m a n d s for u n p a r a lle le d food p ro d u c tio n , Io w a fa rm e rs h a v e p u t

th e ir fa rm s on a n all-out w a r b a sis.
This sp rin g , Io w a 's p ig p ro d u c tio n hit a n all-tim e h ig h , s h o w in g a re c ­
o rd in c re a s e of 20 p e r c e n t o v e r th e tre m e n d o u s o u tp u t of th e p re v io u s
sp rin g .
In th e in c re a s e of h o g p ro d u c tio n , a s in a n y la rg e e x p a n s io n p ro g ra m ,
c a p ita l p la y s a n im p o rta n t p a rt. F re q u e n tly , th e fa rm e r n e e d s e x tra m o n e y
to g r a d e u p his h e rd . . . or to a d d m ore fe e d e rs or m o re bro o d -so w s.
w h e re th e b a n k e r co m es in.

T h a t's

A visit to his b a n k , a n d th e Io w a fa rm e r,

A m e ric a 's so ld ie r of th e soil, is a ll set for th e h u g e ta sk of p ro v id in g m o re
fo o d —a n d still m o re . . . for u ltim a te V ictory.
T h ro u g h th is a n d m a n y o th e r v ita l c h a n n e ls , b a n k e r s a r e m a k in g im ­
p o rta n t c o n trib u tio n s to all-out w a r effort, th ro u g h a le rt a tte n tio n to th e
e v e r y d a y b u s in e s s of b a n k in g in w a rtim e . In d o in g th e se th in g s, no b a n k e r
see k s s p e c ia l re c o g n itio n . No roll of d ru m s or fa n fa re of tru m p e ts is n e e d e d
to a ro u s e p atrio tism .
Yet a ll th e se th in g s co un t.

T h ey a d d u p to a w o rth w h ile to tal. T h ey

m a k e a firm fo u n d a tio n for o u r co n v ictio n th a t Io w a b a n k e r s a r e d o in g a n
e a rn e s t, effective w a rtim e job.

M e m b e r F e d e r a l D e p o s it In su r a n c e C o r p o r a tio n

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Federal Reserve Bank of St. Louis

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1917 ★ 1942

6th and Locust
Des Moines

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

YEARS OF
.SERVICE^
*

58

Bankers Discuss Current Financial
Problems at Iowa Convention
(C ontinued from page 55)
tional B ank and T ru st Com pany of
Roosevelt H igh School, Des Moines. Chicago, w as planning to do a b it of
He played two tru m p e t solos, an d his duck shooting on th e M ississippi
ab ility is o utstanding. R obert is the
R iver. The advent of colder w eath er
son of W illis G. C. Bagley, Iow a state
in th e n o rth helped th e h u n tin g situ a ­
tre a s u re r and form er M ason City tion w hich had been at a stan d still p re ­
banker.
viously, due to very w arm w eath er in
th e north.
R obert AV. B agley, band d irecto r a t

R um or h ad it th a t follow ing the
Iow a convention, W illiam H . M iller,
popular vice p resid en t of th e City N a­

H erbert L . H orton, presid en t of th e
Iowa-Des Moines N ational B ank and

T H E N A T IO N A L B A N K
OF W A TE R LO O
-------------------------------------- ------------------------------------------

STATEMENT OF CONDITION
at th e close o f business S e p te m b e r 30, 1942
■------------------------------------------------★

-------------------------------------------- ---

RESOURCES
C ash and Due from Banks.................................. $
Loans and D iscounts.............................................
U. S. G overnm ent Securities..............................
State, County and M unicipal Securities........
Other Bonds .............................................................
Stock in Federal R eserve Bank.........................
Overdrafts ...............................................................
Furniture and Fixtures...........................................
Accrued Interest R eceiv a b le..............................

4,455,624.19
2,600,339.90
1,341,359.38
2,275,654.63
194,958.61
15,000.00
2,014.68
7,392.05
49,050.76

$10,941,394.20
LIABILITIES
Capital Stock— com m on ................................... $
250,000.00
Surplus ......................................................................
250,000.00
U ndivided Profits ..................................................
149,958.78
R eserve for T axes, Interest, etc.........................
81,230.10
Interest C ollected But NotEarned.....................
10,472.30
D eposits ..........................................
10,199,733.02
$10,941,394.20
★

OFFICERS
J ames M. Graham ....... P r e s i d e n t
Cha s . S. M cK instry ....V ic e P r e s .
R. L. P en ne ........................C a s h ie r

H. F. H offer ....A s s i s t a n t C a s h ie r
R. L. KiLGORE....Assisiani C a s h ie r
A. J. B urk .........A s s i s t a n t C a s h ie r

M em ber F ederal R eserve System
M em ber F ederal D eposit Insurance C orporation

N orthw estern B anker

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

N ovem ber 1942

T ru st Company, also presid en t of the
Des M oines Clearing H ouse Associa­
tion, did a fine job in speaking on the
w ar savings bond situation. H erb ert
is ch airm an of th e V ictory F u n d Com­
m ittee for Iow a and, as usual, he has
functioned splendidly. He appealed to
ban k ers to p u t th e ir h earts and soul
in helping finance the w ar, saying,
“We have th e g reatest m erchandise in
th e w orld to sell, and we are m ost for­
tu n a te th a t we can do th is job w hen
so m any people w an t to help in w ar
w ork b ut don’t have such an opportu­
n ity to serve.”
H enry Scarborough, w ell know n
Chicago insu ran ce m an, w as a t the
Iow a convention accom panied by H.
F. O llendorf from his Chicago office
and H orace Sm ith, his Iow a rep re se n t­
ative. H enry, com bining business and
pleasure, had ju st enjoyed a few days
ph easan t h u n tin g in South D akota
p rio r to th e Iow a convention.

C.
S. “Cy” Y oung, popular p resid en t
of th e F ed eral R eserve B ank of Chi­
cago, w as unable to appear as a speak­
er on th e Iow a program . He w as ably
represented, how ever, by John K.
Langrum , a ssistan t vice president,
w ho m ade a fine talk. Mr. L angrum
em phasized how b an k ers can help
fight inflation, saying, “fighting infla­
tion is one of th e m ost im p o rtan t
p arts of our w ar effort.”
One of the m ost clever speeches
d uring th e convention w as th a t m ade
a t the ban q u et by A. M. H end erson of
S tory City, v eteran b an k er and form er
presid en t of th e Iow a A ssociation. His
function w as to p rese n t a past-presi­
d e n t’s badge to re tirin g presid en t A r­
thu r T. D onhow e, and to th u s relegate
h a rd w orking A rth u r to th e ra n k s of
“has beens.” Mr. H enderson did this
little job in a v ery clever and h u m o r­
ous way.
Som ething new in ban q u et arra n g e ­
m ents w as th e u n u su al seating plan
for honored guests. At one long table
raised ra th e r high w ere seated th e
presiding officers, speakers and past
presidents. A t a n o th er long table at
a low er elevation w ere o ther honored
guests, th u s having th e appearance of
a stage on tw o different levels.
C. H. M egorden, genial cashier of
th e W aukon State Bank, th e new ly
elected vice p resid en t of th e Associa­
tion, m ade a h it in his acceptance
speech. He told of his school days
w hen a professor in com m ercial law
passed out th is advice: “If you ever
have som eone in an association w ho
is quarrelsom e or h ard to m anage,

59
elect him a vice p resid en t an d p ray
th a t y o u r p resid en t stays in good
h ealth .” Mr. M egorden w ill do a fine
job as A ssociation vice president.
An out of sta te convention visito r
w as A. B. Olson, vice p resid en t of th e
G uarantee M utual Life In su ran ce
Com pany of Omaha, w hose com pany
w orks closely w ith b a n k e r agents.
Mr. Olson p a rticu la rly enjoyed being
a t a b an q u et table n e a r P rofessor Ir­
vin g F ish er, noted econom ist from
Yale U niversity. Mr. Olson is a fo r­
m er b an k er and keeps closely in touch
w ith ban k in g problem s.
E m il A Stake, vice president, The
F irs t N ational B ank of Chicago, and
V erne E. B artling, a ssista n t cashier,
called a t th e N or thw estern B anker of­
fices w hile th e y w ere in th e city for
th e sta te convention. The financing
of w ar ind u stries, th e large increase
in th e volum e of deposits and th e sale
of w ar savings bonds and stam ps th e y
told us w ere keeping officers and the
em ployes in th e b an k w ork in g at top
speed.
H enry AY. K oeneke, p ast p resid en t of
the A. B. A., failed to ap p ear on th e
pro g ram as originally scheduled, be­
cause of sickness.

A fam iliar p erso n ality a t th is y e a r’s
Iow a convention w as Edw ard J. K el­
ly, well know n to Iow a b a n k ers for
a g re a t m an y years.
E d has ju s t m ade a connection w ith
B lyth and Com pany, Inc., of Chicago,
and expects to be in Iow a te rrito ry
quite often. He is a v e te ra n in th e
bond business and for several years
w as w ith Babcock, R ushton Company.
R andolph E. Paul, gen eral counsel
of the U nited States T re a su ry De­
partm en t, spoke to th e convention on
th e R evenue Act of 1942, th e official
copy of w hich contains 200 pages.
Mr. P aul said th a t th e a u th o rs of
ou r new ta x bill live in B erlin and
Tokio. In 1940, th e re w ere four m il­
lion ta x p ay ers and in 1943 th e re w ill
be 27 m illion taxpayers. Our national
incom e for 1943 is estim ated a t 125
billion dollars. “T he m ore we ta x
th e less we borrow , th e b e tte r,” says
Mr. Paul. He is opposed to th e R um l
plan and to a sales tax. Mr. P aul
th in k s th a t our tax es are low in com ­
pariso n w ith o th er countries and says
th a t th e F ed eral ta x on a $10,000 in ­
come in th e U nited States, u n d e r th e

“Praise the Lord­
ane! Pass the
Ammunition”
T h is p h rase is th e title o f th e cu rren tly
p o p u la r war so n g w h ic h has cap tu red th e
im a g in a tio n o f th e A m erican p e o p le and
w h ich , we b e lie v e , ap tly e x p r e sse s th e
p oin t o f view o f the average citizen today,
w h eth er in th e com b at fo r c e s, war in d u s­
tries, or c iv ilia n lif e .
T h e P h ila d e lp h ia N ation al w ill c o n tin u e
to “‘pass th e a m m u n itio n ,” as it has in
th e past, by its p u rch a ses o f G overn m en t
b on d s and its lo a n s to war in d u str ie s—
both large and sm a ll— so that p ro d u c ­
tio n w ill n o t cease u n til th e war is w on .
E V A N RANDO LPH ,
P re s id e n t

...

THE . . .

P H IL A D E L P H IA
NATIONAL

BANK

ORGANIZED 1803

PH IL A D E L P H IA , PA .
R e so u r c e s o v e r $ 6 5 0 ,0 0 0 ,0 0 0
Member of Federal Deposit Insurance Corporation

W a n te d : Y oung m an or la d y w ith som e
b an k in g ex p erien ce fo r b o o k k eep er a n d
te lle r in sm all tow n b an k . W rite E . O.,
ca re N o rth w e ste rn B a n k e r.

N orthw estern Banker

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

N ovem ber 1942

60

*
new law w ill be 19 p er cent, in Canada
it is 37 p er cent and in G reat B ritain
it is 42 p er cent.
A t th e a n n u al b an q u e t of th e Iow a
B ankers A ssociation th e re w ere 11
form er p resid en ts seated a t th e head
table and included C. B. M ills, p resi­
den t in 1902; L. A. A ndrew , 1921; A. M.
H enderson, 1923; AV. G. C. B agley,
1930; F rank C. AA7elch, 1935; M. W . E llis,
1936; R. W. Turner, 1937; S. R. Torgeson, 1938; E. A. E b ersole, 1939; C R.
G ossett, 1940; H. R. Y oung, 1941.

IOWA

NEWS

•

A num ber of friends of Charlie M ills,
w ho w as presid en t of th e A ssociation
40 y ears ago, are suggesting th a t he
w ould m ake a m ost w o rth y p resident
n ex t y ear of th e P a st P resid en ts’ As­
sociation.
Leo T. C row ley, ch airm an of th e
F ed eral D eposit Insu ran ce C orpora­
tion, a fter he had finished his reg u lar
speech before th e Iow a convention,
gave an endorsem ent “To m y good
friend, Senator Clyde L. H erring.” At
the b an quet th a t evening, Leo J. AAeg-

m an, presiding officer and p resid en t
of th e Citizens Savings B ank of Anamosa, said th a t he “W ished to second
th e m otion of Mr. Crowley reg arding
Senator H errin g .”
No doubt th is w as to even up th e
fact th a t B. B. H ickenlooper, lieu ten ­
a n t governor of Iowa, appeared on th e
program and spoke on “Iowa in W ar
Tim e.”
V ivian W. Johnson, presid en t of th e
F irs t N ational B ank of Cedar Falls,
Iowa, w ho w ith d rew th is y ear from
the p residential race, is already an ac­
tive candidate for th a t office for 1944.
Mr. Johnson w as vice p resident of th e
A ssociation in 1938 and has been ac­
tive for m any y ears in the state organi­
zation.
B. F. Kauffm an, presid en t of th e
B ankers T ru st Company, Des Moines,
w ho u sually holds a special m eeting
of th e “Com m ittee on L iquidation”
d u ring th e Iow a B ankers convention,
had to forego th a t pleasure th is y ear
because of a crow ded schedule and
not enough tim e to do his usual de­
lightful en tertain in g at his home.
H ow ever, th e b ank had h ead q u arters
at th e H otel F o rt Des Moines w here
Carl M esm er, vice president, and L.
N evin L ee, assistan t vice president,
greeted th e ir m any friends.
D onald A. H arper, a ssistan t vice
president, F irs t W isconsin N ational
Bank, M ilwaukee, had a personal visit
w ith Leo T. Crow ley, chairm an of the
FDIC, afte r Mr. Crowley had finished
his speech before th e convention. Mr.
C row ley’s hom e state is W isconsin
and he and Don visited about m any
of th e ir m u tu al b an k er friends.
H en ry V isser, cashier, F irs t N ational
B ank of H aw arden, Iowa, told us at
the convention th a t th e F irs t N ational
had com pleted th e re tire m e n t of its
p referred stock. The b ank w as or­
ganized in 1934 w ith $25,000 common
and $25,000 p referred stock in th e pe­
riod has re tire d th e en tire issue of p re­
ferred stock out of its operating e a rn ­
ings. T his re tire m e n t w ill re su lt in a
100 p er cent stock dividend and in ad­
dition to th is dividend a cash dividend
of 6 per cent an n u ally has been paid
for th e p ast six years.
The b ank specializes in livestock
and a g ricu ltu ral loans and th e dem and
for such loans keeps th e funds of th e
bank in good w orking order. The
loans th is y ear are 20 p er cent above
a y ear ago and th e peak has n ot been
reached.

N orthw estern B anker

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

N ovem ber 1942

61

•
A large p a rt of th e tim e of th e of­
ficers an d em ployes is also sp en t in
perfo rm in g th e v ario u s d uties th a t
are connected w ith th e w a r program .
Charles R. Gossett, p resid en t of th e
Security N ational B ank of Sioux City,
is a candidate for th e A m erican B an k ­
ers A ssociation executive council from
Iow a for 1944. C harlie w as p resid en t
of th e Iow a B an k ers A ssociation in
1940 and has long been active in state
and n atio n al b an k in g association w ork,
and w ould m ake a v e ry excellent
re p re se n ta tiv e from th e H aw keye
state.

IOWA

NEWS

•

d istrib u tio n of th e U nited States T reas­
u ry reg u lar issues and tax savings
notes. In no w ay w ill th e V ictory
F u n d Com m ittee duplicate th e w ork
of th e W ar Savings Staff.
H ead q u arters for Iow a have been
established in offices on the fifth floor
of the Iowa-Des Moines B ank Building.
The Iow a Regional V ictory F u n d
C om m ittee is composed of H erb ert L.
H orton, chairm an, president, IowaDes Moines N ational B ank & T ru st
Company, Des Moines; F red Bohen,
p resident, M eredith P ublishing Com-

pany, Des Moines; V. L. Clark, state
adm in istrato r, W ar Savings Staff, Des
Moines; S. E. Coquillette, president,
M erchants N ational Bank, Cedar R ap­
ids; V. P. Cullen, executive vice p resi­
dent, N ational B ank of B urlington,
B urlington; V. O. Figge, president,
D avenport B ank & T ru st Company,
D avenport; T. H en ry F oster, president,
Jo h n M orrell & Company, Ottum wa;
C. L. F redricksen, president, Live
Stock N ational Bank, Sioux City; B.
A. G ronstal, president, Council Bluffs
Savings Bank, Council Bluffs; H erm an

Cummins Named Regional
Manager Victory Fund
A nnouncem ent of th e ap p o in tm en t
of Jam es a Cum m ins, w idely know n
Des M oines in v estm en t b anker, as re ­
gional m an ag er of th e Iow a Regional
V ictory F u n d Com m ittee, w as m ade to ­
day by H e rb e rt L. H orton, Iow a ch a ir­
m an an d m em ber of th e S eventh R e­

A FULL TIME JOB
At this bank w e consider serving a s your correspond­
ent is a full time job. W e g iv e you COMPLETE service
on ALL Sioux City item s at ALL times.
This service, plus the friendly cou n sel of our official
staff, is yours for asking w h en you u se this bank a s
your Sioux City correspondent.

V
JA M E S A. C U M M IN S

serve D istrict V ictory F u n d Com m it­
tee. T he ap p o in tm en t w as m ade w ith
th e ap proval of S ecretary of th e T reas­
u ry H e n ry M orgenthau, Jr.
Cum m ins, p resid en t of th e in v est­
m en t firm of W heelock & Cum m ins,
Inc., w ill devote his en tire tim e be­
gin n in g N ovem ber 2nd coordinating
th e efforts of th e b an k in g and secu ri­
ties in d u stry in helping to broaden the
YOUR STATE BANKERS ASSO CIATIO N
O FFICIA L SAFE, V A U L T AN D
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.

Buy
U n ite d S ta te s
W ar B onds
a t th is B a n k

A . G. Sam , P resid en t
J. R. G raning, A ssistan t C ashier
J. P . H ain er, V ice P resid en t
Fritz F ritzson , V ice P res, and C ashier E. A . Joh n son , A ssistan t C ashier
W . F. C ook , A u d ito r
J. T . G rant, A ssistan t C ashier
MEMBER FED ER AL DEPOSIT IN SU R A N C E CORPORATION

IN SIO U X C IT Y

OMAHA

N orthw estern Banker

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Federal Reserve Bank of St. Louis

N ovem ber 19k2

62
A. Heil, E a stm a n E state, B urlington;
F. C. H enem an, president, F irs t N a­
tional B ank, M ason City; F. W. Hubbell, president, E quitab le Life In s u r­
ance Com pany of Iow a, Des Moines;
W ill A Lane, president, S ecurity Sav­
ings Bank, M arshalltow n; A. M. Lowrey, president, F o rt M adison Savings
Bank, F o rt Madison; C harles S. McK in stry , vice president, N ational B ank
of W aterloo, W aterloo; W. S. M errym an, The M essenger and Chronicle,
F o rt Dodge; E. H. Mulock, president,
C entral Life A ssurance Society (M u­
tu al), Des Moines; G erard S. Nollen,
president, B an k ers Life Com pany, Des
Moines; J. J. Quail, Quail & Company,
D avenport; Jo h n W. R ath, president,
R ath P acking Com pany, W aterloo;
George Schaller, Storm Lake; Craig R.
Sheaffer, president, W. A. Sheaffer Pen
Com pany, F o rt Madison; R obert W.
T u rn er, president, City N ational Bank,
Council Bluffs; Max von S chrader,
Cashier, U nion B ank & T ru s t Com­
pany, O ttum w a.

IO W A

N EW S

FROM HERE AND THERE
By J . A . Sarazen, Associate Editor

E. HAUGEN recen tly joined th e
. staff of th e D ecorah State Bank,
w hich brings him back into banking
circles w hich he left seven y ears ago to
e n te r th e fu rn itu re business. He w as
connected w ith th e N ational B ank of
D ecorah for a long tim e, w hich w as
ta k e n over by th e D ecorah S tate B ank
nine y ears ago. H e rem ained w ith th e
la tte r in stitu tio n tw o y ears w hen he
en tered th e fu rn itu re business, w hich
w as recen tly closed out. H is m any

N

friends are pleased to see him back in
the em ploy of th is pop ular bank.
K, A. Reeves, em ploye of th e Iowa
T ru st & Savings Bank, E m m etsburg,
for th e p ast 12 years, has been ad­
vanced from th e position of assistan t
cashier to cashier, October 1st. Chas.
J. Spies, form erly both presid en t and
cashier, relinquishes th e title of cash­
ier.

STATE OF IOWA

DEPARTM ENT
IO W A

OF

U N IF O R M

B A N K IN G

SCH EDULE

For Cost Analysis of Checking Accounts
A pproved by State Banking Board
A ggregate
Balance
in
Thousands
Daily
A verage
Balance

Item s
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

0

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

0

100

133

167

200

233

267

300

333

367

400

433

467

500

533

567

100

133

167

200

233

267

300

333

367

400

433

467

500

533

567

600

.55
.60
.65
.70
.75
.80
.85
.90
.95
1.00
1.05
1.10
1.15
1.20
1.25
1.30
1.35
1.40
1.45
1.50

.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90
.95
1.00
1.05
1.10
1.15
1.20
1.25
1.30
1.35

.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90
.95
1.00
1.05
1.10
1.15
1.20
1.25
1.30

.10
.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90
.95
1.00
1.05

.05
.10
.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90
.95
1.00

.05
.10
.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90
.95

.05
.10
.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90

.05
.10
.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85

.05
.10
.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80

.05
.10
.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75

.05
.10
.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70

.05
.10
.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65

.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90
.95
1.00
1.05
1.10
1.15
1.20
1.25

.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90
.95
1.00
1.05
1.10
1.15
1.20

.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90
.95
1.00
1.05
1.10
1.15

.15
.20
.25
.30
.35
.40
.45
.50
.55
.60
.65
.70
.75
.80
.85
.90
.95
1.00
1.05
1.10

B ased on a m a in te n a n c e c h a rg e of 50 cen ts a m o n th fo r each account, p lu s 5 cen ts f o r each check w ritte n or out-of-tow n
check h an d led w ith a n o ffse ttin g c re d it of 15 cen ts fo r each $100 of a v e ra g e b alan c e. A d d itio n a l checks 5 cen ts each. W hile not
com pulsory, th e above h a s been su g g e s te d fo r a d o p tio n by all S ta te b a n k s in Iow a.

S carborough
*

¿ A

First N ational Bank Building, C hicago

N orthw estern B anker

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

N ovem ber 1942

viPANY
lAU
Horace A. Smith, Iow a R epresentative
Des M oines, Iow a

>

63

•
Lloyd R. Bock, vice p resident, B en­
ton C ounty B ank & T ru st Com pany,
V inton, tells us th a t deposits as of th e
la tte r p a rt of October h ad increased to
over $425,000. T his b an k opened for
business Ju n e 1st, w ith a capital of
$50,000 and su rp lu s and profits of
$15,000.
Banks at Emmetsburg pay 2 p er cent
in te re st on 12 m o n th s CD’s and IV2
p er cent on savings accounts.
Dean Smith, a ssista n t cashier, F irs t
N ational B ank, Creston, is on a leave
of absence to cooperate w ith Uncle
Sam for th e d uration. He en tered
service O ctober 19th, and is stationed
at a flying school in K ansas.

IOWA

NEWS

—

te re st paid Septem ber 15th, from 2 to
1 p er cent.
Port Dodge banks are now paying 1
p er cent on deposits, having reduced
th e rate paid from 2 per cent last Sep­
tem b er 15th.
The State Savings Bank, Fontanelle,
reduced in te re st rates paid on deposits
last Ju n e from 2 to 1 per cent. In te r­
est is paid only to old custom ers and
new accounts bear no interest.
The Cromwell State Savings Bank

increased service charges and reduced
in te re st paid on deposits, effective Sep­
tem b er 1st. The ra te of in te re st now
paid is 1 p er cent instead of 2 p er cent.
The flat service charge of 25 cents per
m o n th on personal accounts has been
increased to 50 cents per m onth. M er­
c h a n ts’ accounts, w hich form erly w ere
charged 50 cents p er m onth, will now
be charged $1 per m onth.
The First National Bank, Prescott,
reduced in te re st rates on CD’s and
savings Septem ber 1st, from 2 to 1
p er cent.

" Ilt li
D eposits at th e Commercial State
Bank, Afton, are now over $800,000.
T his is an increase of $135,000 since
the first of th e year. T he b an k discon­
tin u ed issuing CD’s S eptem ber 1st and
in te re st on lim ited savings accounts
w ill be at th e ra te of 1 p er cent. Serv­
ice charges on checking accounts w ill
be stepped up as of N ovem ber 1st.
The base charge w ill be 50 cents on
accounts av eraging u n d e r $100, th e
n u m b er of free debits has been reduced
and ex tra debits w ill now be 4 cents
instead of 3 cents.
R ecent sta te m e n t of th e Clark Coun­
ty State Bank of Osceola lists deposits
of $1,500,000, w hich is an increase of
$345,000 since th e first of th e year. In
th e seven y ears th is b an k has been in
operation no in te re st has been paid
on deposits.
Richard Wallace, bookkeeper at th e
A dair C ounty Bank, Greenfield, w as
inducted into th e a rm y October 26th.
Service charges as applied by th e
Pocahontas b an k s include a base
charge of 50 cents each m o n th on p e r­
sonal accounts and $1 p er m o n th on
business accounts, w hich includes ten
free debits. T en additional debits are
allow ed for each $100 balance above
th e $100. A dditional debits are charged
a t th e ra te of 4 cents for checks d raw n
ag ain st th e account and 5 cents on
out-of-town checks deposited. Poca­
h o n tas b an k s reduced th e ra te of in-

FOOD FOR VICTORY
EMBLEM

Has Become Famous in
A L L IE D PORTS
AU. Que/i *JUe W o M
Illu stration by W alt D isney

W idely recognized and w elcom ed in A llied p o rts all over the
W o rld — this fam ous em blem is th e label for a g ro w in g flood
of food now being shipped abroad, as an im p o rta n t p a rt of
A m erica’s w ar effort. A nd its fam e is ju s t in its infancy.
Because A m erican food p ro d u cts—overw h elm in g ly from the
M idw est— will be depended upon by in creasing m illions d u r­
ing the w ar and th e peace th a t follows.
M idw estern B anks are tru ly an in teg ral p a rt of this giant
F O O D -F O R -V IC T O R Y P R O G R A M . T h ey supply the
cred it and b anking needs of farm ers, packers, canners, dehyd raters and a score of o th e r en terp rises, the facilities of
w hich are necessary in producing, p rocessing and d istrib u t­
ing food.
T he D ro v ers N ational B ank has specialized for years in
fast, accurate and dependable service to banks th a t serve
ag riculture. I t is the logical choice as Chicago co rresp o ndent
for m any m id w estern banks.
Y o u r inquiry is invited.

Banks Sold or Bought!
quietly, quickly and in a personal manner

JAY A. WELCH
BA N K BRO K ER
H addam , K ansas

“35 Years Practical Banking Experience”

DROVERS NATIONAL RANK
DROVERS T R U ST & SAVINGS RANK
MEMBERS , FEDERAL D E P O S I T I NSURANCE CORPORATION

C H I C A G O
N orthw estern Banker


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

N ovem ber 1942

64

• IOWA
A nother b an k paying 1 p er cent in ­
te re st on deposits is th e Farmers Sav­
ings Bank, Massena, h aving reduced
th e ra te from 2 p er cent last July.
Deposits are rem ain in g stable, accord­
ing to W ray W ilson, vice president.
The Norwalk-Cumming State Bank,
N orw alk, discontinued acceptance of
in te re st b earin g deposits, effective Oc­
tober 1st. The b an k form erly paid 2
p er cent on deposits up to $1,000 and
n o th in g above th a t sum.
B oth

b anks a t W interset discon-

NEWS

•

tin u ed issuing in te re st bearing CD’s
October 1st. No in terest w ill be paid
h ere on savings accounts after No­
vem ber 1st.

T he City State Bank, Ogden, m ade a
reduction in in te re st rates on deposits,
effective S eptem ber 1st, w hich is ap­
proxim ately th e sam e as th e bank m en­
tioned above.

The Dallas County State Bank, Adel,
and th e office at Van Meter, reduced
in te re st paid on deposits last Ju ly as
follows: Savings accounts bear in te r­
est at th e ra te of 1 p er cent, six or
tw elve m onths CD’s bear in te re st at
th e rate of IV2 per cent for th e first
$2,500, and 1 per cent on sum s above
$2,500.

The Peoples Trust & Savings Bank,
Indianola, discontinued accepting de­
posits on an in te re st bearing basis,
effective last Ju ly 1st. Gerald Beym er, a ssistan t cashier of th is bank, re ­
cently joined our arm ed forces.

R o u t e y o u r W i s c o n s in ite m »

DIRECT TO
of Proinid

The W est Des Moines State Bank
no longer accepts deposits on an in te r­
est bearing basis. Effective N ovem ber
1st, a new schedule of service charges
goes into effect. The ch art show ing
th e am o u n t each account w ill pay in
keeping w ith the balance and activity
w as w orked up by A. M. Compton,
cashier. It is based on a m aintenance
charge of 50 cents per m onth, plus 5
cents for each check issued. Then
th ere is a credit to th e account of 25
cents p er h u n d red afte r deducting a
25 p er cent reserve.
Opal Sackett, a s s i s t a n t cashier,
A m erican N ational Bank, A rlington,
w as m arried recently to V incent Luce
of F ayette. She w ill continue in h er
p resen t position in th e bank.

2 ¡¡jk h . •

Ai

MILWAUKEE
"D irn i ta the point" because
the First W isconsin serves
m M ilw aukee c o rrespa mtcHt
f o r over S S p e r cen t o f n il
W isconsin banks! I N I Q U E
sta te w id e "coverage"!
—

A F irst W isconsin accou n t is you r m aster
k ey to prom pt, efficien t co llec tio n o f
W isconsin ch eck s and drafts. T h is hank
is th e largest in th e W iscon sin -lo w a D akota-M innesota a r e a . . . servin g m ore
than 500 W iscon sin corresp on d en ts, as
w ell as h ank s in k e y cities o f n eig h b o r­
ing states. Y our in q u iries are in vited .

BANKS and BANKERS DIVISION

In a com m unication from A. W.
Bird, cashier, D yersville N ational
Bank, we are inform ed th a t on A ugust
15th new service charges w ere adopted
by his bank, th e New V ienna Savings
Bank, L uxem burg Savings Bank, F a r­
ley State B ank and th e E p w o rth Sav­
ings Bank. T here is a base charge of
50 cents on checking accounts averag­
ing u n d er $500, w hich p erm its five free
checks; ex tra checks 3 cents each. A
base charge of 50 cents is also applied
on accounts averaging betw een $500
and $1,000, w hich perm its 10 free
checks; ex tra checks 3 cents each.
The base charge on accounts averaging
betw een $1,000 and $2,000 is reduced to
25 cents, w hich also perm its 10 free
checks; ex tra checks 3 cents each.
T here is no base charge on accounts
averaging over $2,000 and 10 free
checks are allowed; ex tra checks 3
cents each.
All out-of-town checks deposited are
charged at th e ra te of 5 cents each.

George T. C am pbell................................... Vice President

In a com m unication from Clay W.
Stafford, president, Ames T ru st & Sav­
ings Bank, he w rites us as follows:
“I h a v e r e a d w ith i n t e r e s t th e a n ­

Richard J. L a w le s s ............... A ssistant Vice President
Donald A. H arper.................. A ssistant Vice President

l

Member of the Federal
Deposit Insurance Corporation

N orthw estern B anker

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

N ovem ber 1942

OF

MXLW álKfiF

n o u n c e m e n ts in t h e N orthw estern
B anker b y v a r i o u s b a n k s in t h e s t a te
c o v e r in g i n t e r e s t p a id o n s a v in g s ac­
c o u n ts .

65

-•
“A t o u r last board m eeting, we voted
to cu t our p re se n t ra te in tw o as of
Ja n u a ry 1, 1943. Our rate, effective
Ja n u a ry 1st, w ill be 1 p er cent on sav­
ings and tim e CD’s in am o u n ts of $500
or less and one-half of 1 p er cent on
am ounts above $500. W e do n o t accept
or p ay in te re st on any am o u n t above
$5,000.”
S. R. Linn, cashier, F a rm e rs State
Bank, Stanhope, w as inducted into th e
arm y S eptem ber 25th, and is stationed
at F o rt Knox, K entucky.

IOWA

NEWS

■-

Lee County Bankers Elect

Fall Meeting

The ann u al m eeting of th e Lee
C ounty B ankers A ssociation w as held
recen tly in Donnellson. T here w ere
35 in attendance. R. L. Schm itt, cash­
ier of th e Citizens S tate Bank, of Don­
nellson, w as elected p resid en t to suc­
ceed R. J. McCleary, of Keokuk. H arry
T. E dw ards, cashier of th e W ever Sav­
ings B ank w as nam ed vice president,
and A ubrey V. Allen, assistan t cashier
of th e K eokuk Savings B ank and T ru st
Company, w as elected secretary-treas­
urer.

The C ounty B ankers’ A ssociation
held its fall m eeting at G arnavillo
recently. A bout fifty ban k ers attended
th e m eeting and banquet held in St.
P e te r’s C hurch parlors.
T he program included a welcome ad­
dress by W. B. Kuenzel; m usical n u m ­
bers by th e Misses Celia C hristenson,
B lanche Seim, W inifred McMillan,
Doris Allison and E linor K ohlm an and
Calvin Kuenzel; p resen tatio n of col­
ored slides by A. J. Kregel.

Thelma J. Carnes, form erly a ssistan t
cashier, F irs t S tate B ank, Conrad, has
joined th e C om m unity N ational B ank
& T ru st C om pany a t K noxville.

Retired Banker Dies
W ill J. W hitehill, 69, re tire d State
C enter b a n k e r w ho had a record of
th e longest continuous service in b a n k ­
ing of any m an in th e county, died
last m o n th at his hom e a fte r a w eek ’s
illness of pneum onia. Mr. W hitehill
had been in failing h e a lth since 1937
w hen he re tire d from active business.

Pulis to Arizona
V ictor H. Pulis, form erly of Iow a
Falls, has been nam ed tr u s t officer
of th e V alley N ational B ank in
Phoenix, A rizona. F o r fifteen years,
Mr. P ulis w as a ssista n t tr u s t officer
in th e Iowa-Des Moies N ational B ank
in Des Moines.

New Employe
Miss M amie In g eb ritso n has been
em ployed by th e H om e S tate B ank of
Jefferson as senior clerk. Miss In g e­
b ritso n comes from Dows, w h ere she
w as b o rn and has lived all h e r life.
F o r about th e last 14 y ears she has
been connected w ith th e F a rm e rs
S tate B ank in Dows and has h ad con­
siderable b an k in g experience. She w as
a ssista n t cash ier there.

A Bank for
Middle West Bankers
For n early three-quarters of a
century this bank has handled
the accounts of bankers through­
out the m iddle w est. M ay we
explain how this long experience
can be made of value to you?
•

LIVE STOCK

Fayette County
Bankers Elect
Don W arn ek e of H aw keye w as
elected p resid en t of th e F ay ette
County B an k ers A ssociation a t its
an n u al fall m eeting. Jo h n Camp of
W est U nion becam e vice p resid en t
of th e o rganization and a C lerm ont
b an k er w as nam ed secretary -treasu rer.
F orty-tw o b an k officers and em ­
ployes atten d ed th e m eeting, w hich
w as held in Oelwein.

m a t

.

ONAL BANK

OF C H IC A G O

E s tabl i s he d 1868
UNION

STOCK

YARDS

M e m b e r F e d e r a l D e p o s it In su ra n ce C o rp o ra tio n

N orthw estern Banker

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

N ovem ber 19'i2

66

How Cost Analysis

M ERC
HANTS
MUTUAL

BONDING
COMPANY

Helps You increase Your Earnings
By A. G. Sam

In corp orated 1933

President
First National Bank
Sioux C ity

H om e Office
V A L L E Y B A N K B U IL D IN G

D es M oin es, Iow a

T h is is Io w a ’s o ld est su rety com p any.

A p ro g ressiv e com p an y w ith ex p eri­
en ced , co n serv a tive m an agem en t. W e
are p rou d o f our h u n d red and fifty
bank agents in Iow a.
T o b e the ex c lu siv e rep resen tative of
this com p any is an asset to you r bank.

W rite to

E. H . W A R N E R
S e c re ta ry a n d M an a g e r

The Only Place
In De s M o i n e s
Where You Can

T

Buy

OSTEO-PATH-IK
SH O ES

$ 11.00

FR A N K E L ’ S
DES MOINES

C o u n

B a n k

D . R . W E S S L IN G , P R E S ID E N T

N o rthw estern B anker

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

It is a necessary factor w hich m u st be
considered, and governs in all m an u ­
factu rin g lines and businesses th a t are
technical and operations varied and
com plicated, in order to know costs,
w here th ey can be cut, and to set sell­
ing prices as ag ain st aggressive com­
petition. Such in d u stries m u st know
th e ir profit m argin, even if narrow , to
ju stify th e ir staying in business.
You w ill find th ro u g h o u t th e m an u ­
factu rin g areas of th e country, indus­
trial engineers, so-called, w hose busi­
ness it is to m ake surveys for analysis
A. G. SAM
of costs, efficiency of m anagem ent and
T his v e ry in terestin g subject was equipm ent in order to produce eco­
p resented to the Iow a B ankers con­ nom ically w ith profit, in volum e and
v e n tio n by Mr. Sam, w ho has m ade a up to capacity. So necessary and de­
real stu d y of the Cost A nalysis of sirable is th is w ork of in d u strial engi­
B a n k Operations. W e are sure that neers th a t it has become a very exact­
every banker w ill find som e helpful ing line of w ork and a lucrative pro­
ideas in this condensed report of w hat fession.
Mr. Sam presented so effectively to
R em uneration for services rendered
the convention—E d itor’s Note.
as against in te re st received is entirely
a separate phase of banking service
H E subject of cost analysis is a
and should stan d on its ow n feet, and
broad subject and of u n iv ersal in ­
is a p roper charge. A b ank is dispens­
te re st in th e business w orld. It is
ing no favors in g ran tin g credit to a
of v ital im portance to wide-awake,
deserving responsible borrow er, at the
com petitive
business,
p articu larly
going fair rate, and the depositor ac­
w h ere th e m argins of profit are n a r­
cepts as a m a tte r of course th e splen­
row and in d u stry highly com petitive. did service and m achinery of his bank
for acting as his collection m essenger,
and th e m any o th er types of services
available. He accepts such services
j d a u ie d f
m uch as th e average citizen accepts
Our p o lic y p ro v id es a m axim u m
th e radio, telephone, autom obile, and
our num erous convenience gadgets of
assessm en t o f 2 fz % in Z ones
today as a m a tte r of fact norm al and
O ne and T w o— and 3'/^% in
un iv ersal convenience service. Much
Z on e T h ree (W estern Io w a ).
of th is equipm ent m ay be found to be
irreplaceable for th e duration. F o r
th is capable service c ertain tly a bank
is en titled to reasonable com pensation
Insurance Association
and th ere is w here a u n iform basis of
Carver Bldg.
F ort Dodge, Iow a
cost analysis comes in. As a basic fact,
such com pensation should alw ays have
been collected by banks and certainly
20 th y e a r p la n n in g a d v e r t is in g p r o g ra m s
m ore so now th a n ever, as a replace­
fo r b a n k s a n d tr u s t c o m p a n ie s . M e m ­
b e r F in a n c ia l A d v e r t is e r s
A s s o c ia tio n .
m en t and cushion ag ain st reduced in ­
v estm en t retu rn s. T here is no fairR
b l
l a t i
m inded custom er w ho w ill deny, w hen
he u n d erstan d s th e subject, th a t costly
¿zA/[oLnz±, I lo (A ia
equipm ent, supplies, postage and effi-

N ovem ber 19f 2

Hawkeye Mutual Hail

67

—•
ciently organized d ep artm en ts for
han d lin g collection routines, should be
sustain ed out of re tu rn s from services
rendered. I firm ly believe th a t in th e
search for in creased incom e th e s u r­
face has h a rd ly been scratched in th e
direction of th is p a rtia lly explored area
and still be fair w ith th e depositor.
A certain city clearing house asso­
ciation, in connection w ith its research
w o rk on th e subject, sen t out four
specim en accounts to tw e n ty w idely
sep arated points to be analyzed accord­
ing to th e ir form ula in practice. F ro m
these vario u s points th e resu lts on one
account reflected a range from a profit
of $424.41 in one city to a loss of $4.33
in an o th er, to say no th in g of w ide v a ri­
ations a t o th er points on th e sam e ac­
counts. A w ise-cracking serg ean t in
the service told a rookie th a t th e re w as
the rig h t w ay and th e a rm y w ay. M ili­
tarily speaking, som ething is not click­
ing w hen such d iv erg en t re su lts are
arriv ed at; in fact, it’s even funny, and
should be to a custom er, and such sit­
uations reflect lack of basic u n d e r­
stan d in g of th e subject.
The principle of cost analysis has
been p re tty w ell accepted th ro u g h o u t
the country, and in one w ay or an o th e r
p u t into p ractice by a m ajo rity of
banks, w ith m an y hom e-grow n ideas,
good or bad, injected, w hich accounts
for th e trem en d o u s v ariance in m e th ­
ods and re su lts observed. F e a r of re ­
actions from custom ers w ho are n a tu ­
rally on th e defensive ag ain st—to them
—new or in creasin g costs, or w ho don’t
like to lose a good th in g and offer re ­
sistance, slows up em bracing an ade­
quate profitable form ula. F e a r of local
com petition is an o th e r big factor w h ere
banks in a co m m unity w o n ’t get to ­
g e th e r on a com m on g ro u n d fair to all,
w hich is w ro n g and can be done—
sm a rt big business has reduced th is
factor to a m inim um . It is a slow p ro ­
cedure as th e subject is view ed a t p re s­
ent, b u t n ev erth eless som e progress is
being m ade to th e profitable benefit of
ban k s sufficiently a le rt and in terested
to give th e ir serious a tte n tio n and

•
portance and contribution to earnings.
A nalysis research is certain ly entitled
to lab o rato ry space in th e ban k for
research w ork, and th e 100 per cent
interest, cooperation and su p p o rt of
th e top flight officers of th e bank,
w hich th e subject certain ly rates.
It goes w ith o u t saying th a t you b an k ­
ers are constantly on th e still h u n t to
plug leakages in n et earn in g resu lts
and to m y m ind a decided increase in
service charge revenue is going to be
p a rt of our job to w ork out if we
are to m ain tain a reasonable earning
pow er so as to provide reserves for
such contingencies as are sure to arise
follow ing th e successful com pletion
and w inning of th is w ar.

★

A SOURCE OF INFORM ATION
OF YAFUE
TO O U T-O F-TO W N BANKS

HROUGHOUT its years of continued
service, The Northern Trust Company has
accumulated a wide variety of facts, figures, and
experience. The trained personnel of this bank
is fully informed on current changes affect­
ing business and banking operations. And,
following an established policy, this essential
information is readily made available to our
correspondents. Thus, the out-of-town bank
which establishes a connection here broadens
its usefulness to its own customers and its
community. Inquiries are invited.

T

P U B L IS H E R ’S STATEM ENT

THE NORTHERN
TRUST COMPANY
50 SOUTH LA SALLE STREET, CHICAGO

Cl if f o r d D e P u y ,

Publisher.
Sworn to and subscribed before me this 6th day
of October, 1942.
enry

NEWS

stu d y to th e rem edies possible d uring
th is period of lean in v estm en t retu rn s,
w hich m ay become sp arser before the
p re sen t upheaval is over.
J u s t a w ord or tw o to you executive
officers. I am suspicious th a t a large
n u m b er of senior b ank officers have
given b u t v ery little serious a tten tio n
to th e service charge incom e factor of
th e ir banks, it being w ith them a
m achine-shop operation tu rn e d over to
ju n io r officers or em ployes to struggle
w ith.
T he im m ediate fu tu re I feel confi­
den t is going to allocate th is operation
as an im p o rtan t tactical earnings front.
It w ill for some tim e com pare w ith the
credit d ep artm en t in its relativ e im-

Statem ent of the Ownership, Management, Cir­
culation, etc., required by the Act of Congress of
March 3, 1933, of the N o r t h w e s t e r n B a n k e r ,
published monthly at Des Moines, Iowa, for Octo­
ber 1, 1942.
1. Name of Publisher: Clifford D e Puy, Des
Moines, Iow a. Associate Publisher, R. W. Moor­
head, D es Moines, Iow a.
Editor, H enry H.
H aynes, Des Moines, Iowa.
2. Owner, Clifford D e Puy, D es Moines, Iow a.
3. That the known bondholders, mortgagees and
other security holders ow ning or holding 1 per
cent or more of total amount of bonds, mortgages,
or other securities are: None.

H

IOWA

Member Federal Deposit Insurance Corporation

H . H a y n es,

(S ea l)
N otary Public.
(My commission expires July 4, 1 9 45.)

★
N orthw estern B anker


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

★
N ovem ber 19b2

68

What Rationing and Price
Ceilings Means to Livestock
Feeding and Producing
By Alvin E. Johnson
President
Live Stock National Bank
Omaha

A L V IN E. J O H N S O N

P resented here are excerpts fro m
the talk by Mr. Johnson before the re­
cent annual co nvention of the loica
B ankers Association. A serious s itu ­
ation exists, and bankers w ill do w ell
to follow the suggestions m ade in this
discussion and pass the w ord on to
the farm ers in th eir c o m m u n ities.—
E d ito r’s Note.
OLUNTARY consum er rationing,
to be followed by som e so rt of cou­
pon ratio n in g of m eat, is now w ith us.
T hings have a w ay of com ing to a
head some day. W h at w as m erely a
livestock m an ’s n ig h tm are in A pril
becam e a public headache in October.
W hen these livestock m en m entioned
th e possibility of m eatless days and
ratio n in g th is spring, au th o rities in
W ashington assu red th e people th a t
the m eat supply w as at an all tim e
high, th a t m eat sh ortages w ere not
in th e picture. The public had to w ait
until th e b u tch er at th e m eat m ark et
said, “Sorry, no m eat today,” before
they got th e h a rd facts. It took six
m onths for th e new s to get to the m eat
m arket, b u t it got there!

V

In view of th e natio n al w ar em er­
gency and th e p erils of inflation, I
don’t th in k an y of us can q u arrel w ith
th e p rinciple of price ceilings. The
policy of price fixation is certain ly not
N orthw estern B anker

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

N ovem ber 1942

e n tirely com patible w ith our tra d itio n ­
al h ab it of p e rm ittin g supply and de­
m and to establish value; b u t some
form of over-all check has to be estab­
lished as a tem p o rary m easure in total
w ar. The experience of th e B ritish
p re tty well su b stan tiate this. P roperly
adm inistered, price fixing can react to
th e u ltim ate benefit of everyone. E v ery
jew el has its price. The price of Vic­
to ry m ay seem high b u t it is sm all in ­
deed com pared to th e price of defeat.
T here is one thing, how ever, th a t
we m ust not lose sight of in connec­
tion w ith the application of price fix­
ation . . . and th a t is—it doesn’t w ork
unless you regulate everything. The
value of a product is m ade up of m any
th in g s—labor, investm ent, raw m ate­
rial, m anagem ent, research, tra n sp o r­
tation, etc. I doubt if it is possible
to fix the price of a finished or sem i­
finished product w ithout rigidly fix­
ing th e price of th e com ponents th a t
go into it.
R ationing is th e stepchild of price
fixing. One goes w ith the other. Ceil­
ings w ill crack u n d er th e pressu re of
dem and unless dem and is regulated
th ro u g h rationing. So, for all prac­
tical purposes, w hen ceilings w ere
placed on m eat, ratio n in g w as inevi­
table.
R ationing is supposed to equalize
th e d istrib u tio n of a lim ited supply
of goods. The size of th e ratio n de­
pends on the supply.
H as an y th in g been done to increase
th e supply of m eat? F rom m y ob­
serv ation v ery little has been done.
If anything, th e w orking of th e price
ceilings to date and general w artim e
conditions have tended to reduce the
ultim ate, long range supply of meat.
As I see it, th ere are m illions of
little pigs and young beef anim als in
this country. T hey are four-footed
w ar factories, capable of producing
billions of pounds of ex tra m eat. We
can p u t them on a w ar production
schedule by feeding them up to

w eights th a t w ill yield th e ex tra flesh
and fats we need in w artim e America.
I hold no brief for prim e quality for
th e sake of q uality itself. I th in k we
can dispense w ith the lu x u ry of de
luxe m eats for th e d u ratio n . . . b u t
I am in terested in W EIG H T. A heavy
hog has m ore pounds of m eat th a n a
poor hog and I th in k A m erica is in ­
terested in POUNDS rig h t now, not
essentially in n um bers of livestock.
In o th er w ords—-let’s do som ething
about increasing th e supply—n o t p u t
all our faith in ratio n in g w h at we
have.
How can th a t be done? H ow can
we get feeders to feed m eat anim als
to heavier w eights?
Since last spring, w hen livestock
ceilings w en t into effect, feeders have
been curtailin g th e ir feeding opera­
tions. U n certainties as to cattle prices
and feed costs, sh o rt labor supplies
and o ther factors have been responsi­
ble and are still responsible. The De­
p a rtm e n t of A gricultu re announced as
lately as October 14th th a t “Cattle
feeding operations w ould be on a sm all
scale th is year because of u n c ertain ty
as to prices and sh o rt labor supplies.”
We have the spectacle of drastically
reduced feeding operations in face of
a record supply of feed grains, hay and
roughage.
T here is on old Indian adage, from
th e Sioux tribe, I believe, w hich goes
like this: “Only a fool eats all of his
corn.” In order to have an o th er crop
we m ust have some seed corn. This
applies to th e livestock business as
well. If, by p rem atu re slaughter, we
m eet our m eat dem ands at th e expense
of reducing our cattle population, it
is like b u rn in g dow n w ar factories.
W hat we need is m ore pounds of
m eat and m ore m eat anim als. This
can be accom plished in a short
tim e only by m aking it possible for
farm ers to feed cattle to norm al or
above norm al w eights.
Now, w ith o u t going into technical
details, it appears to me th a t som e­
th in g can be done to resto re th e cattle
feeder and producer to th e ir rightful
place in the w ar production program .
It sim ply am ounts to this: A djust the
spread betw een th e different grades of
beef, for exam ple, so th a t th e feeder
can at least have a chance of g etting
his m oney back w hen he goes to sell
his heavy cattle. Stabilize th e cost of
feed, labor, and o th er item s th a t go
into th e production of m eat so th a t the
feeder can calculate w ith some accura­
cy his cost of production. Set th e
m ark et controls up so th at, everything
considered, the farm er w ho feeds can
a t least count on break in g even on his
feeding operations. E v ery feeder I
have talked to has been anxious to feed

69

his livestock up to h eav ier w eights, be­
cause he realizes th e te rrib le need for
finished m eat products. All th a t th ese
people seem ed to w a n t w as some as­
su rance th ey w ould not lose th e ir
farm s, th e ir sh irts, and th e ir in su ran ce
policies in th e bargain.
You h e a r from m an y sources th a t
p ackers are losing considerable m oney
on both hogs and cattle. I don’t know
w h e th e r th is is tru e, because I do not
own a packing plant, b u t if it is tru e,
we know th a t th e re w ill have to be an
ad ju stm e n t dow nw ard in th e price of
live cattle.
I have h eard th a t som e of th e folks
in th e OPA have been considering
subsidizing th e livestock feeder, as
th ey have, to a degree, subsidized th e
g rain farm er. If th e y can subsidize
th e livestock feeder th e n th e y w ill
have th e en tire Corn B elt regim ented.
Subsidies are u n h e a lth y in m y esti­
m ation. T hey am o u n t to practical su b ­
servience. I d o n ’t th in k anyone in
th e livestock business is read y for th at.
Now, no am o u n t of controls w ill ex­
em pt th e feeder from u sing his head

and his ingenuity. Feeding isn ’t ju st
a m a tte r of p ouring a lot of corn and
cake into a hog.
T he feeder, like all of us, m ust rec­
ognize th a t we are living in a period
of controlled economy. T he m argins
of operation in th e feeding business
w ill be sm all indeed. The farm er and
feeder m ust stu d y feed utilization, la­
bor efficiency, m ore economic utiliza­
tion of farm products. The feeder
m u st learn to w ork w ell w ith in th e
lim ited and rigid req u irem en ts of th e
w artim e economy. F eeders can go
broke u n d er any kind of regulation.
A fter all, it breaks dow n to an individ­
ual problem . E v ery cattle feeder m ust
w ork out his individual problem s w ith ­
in th e fram ew ork of th e broad con­
trols.
The law of supply and dem and is no
longer operative as a control factor.
T he public has lost for th e du ratio n its
ability of choice. Soon th e housew ife
w ill probably be glad to get any kind
of m eat, providing she can get h er
2 V2 pounds p er capita a w eek.— TH E
EN D .

Self-Serve
C ustom er: “I ’d like some r a t poison,
please.”
Clerk: “W ill you take it w ith you?”
C ustom er: “No, I ’ll send th e rats
over after it.”

DES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION

O ldest a n d L argest
in Des M oines
411 6th A v e.

D ia l 4-7119

EL M E R E. M IL L E R
P res, a nd Sec.

H U B E R T E . JA M E S
A sst. Sec.

Member Federal Home Loan Bank System

BANK SUPPLIES
A ddressing M achines . . . . A dding M achines
D u p lic a tin g M a c h in e s ................Electro-C opyist
E q u ip m en t . . . Ozalid W h ite p rin t P rocess
T y p e w riters . . . E diphone Voice W ritin g
F rid en C alcu lato rs

KOCH BROTHERS
t f n

ò

c x

P r in te rs . . . B ookbinders . . . Office O u tfitters
S ta tio n e rs . . . B usiness M achines

< J o

G rand A venue a t F o u rth S tree t
D ES M O IN ES

K

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 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 a n d T r u s t C o..

3
38
43
69
32

B
B a n k e r s T r u s t C o m p a n y ................................56-5 7
B e r k o w i t z E n v e l o p e C o m p a n y .................... 21
B u r r o u g h s A d d i n g M a c h i n e C o m p a n y . . 35
H . M. B y l l e s b y a n d C o m p a n y ....................... 30

C
C e n tra l N a tio 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 ity N a tio n a l B a n k a n d T r u s t C o m p a n y
— C h i c a g o ...............................................................
C o m m e r c e T r u s t C o m p a n y ..............................
C o n tin e n tal N atio n al B an k — L in c o ln ...

10
4
34
31
33

1)
J . M. D a i n a n d C o m p a n y ................................. 48
F . E . D a v e n p o r t a n d C o m p a n y . . . . 28-30-61
D e L u x e C h e c k P r i n t e r s , I n c ......................... 5 2
D es M o in es B u ild in g , L o a n a n d S a v in g s
A sso ciatio n
.......................................................... 69
D o u g l a s G u a r d i a n W a r e h o u s e C o r p . . . . 40
D r o v e r s N a t i o n a l B a n k ...................................... 63
E

30
41
54
26
61
44
64
66

N atio n al B an k and
................................................

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 ive S to ck N a tio n a l B a n k — C h ic a g o ...
L ive S to ck N a tio n a l B a n k — O m a h a . . . .
L iv e s to c k N a tio n a l B a n k — S io u x C ity . .

5
69
65
23
50

M

M erchants M utual B onding C om pany. .
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 .................................................................
M i n n e s o t a C o m m e r c i a l M e n ’s A s s n ..........
M i s s i s s i p p i V a l l e y T r u s t C o ...........................

66
2
49
48
60

N
N a t i o n a l B a n k o f D e t r o i t ................................. 40
N a t i o n a l B a n k o f W a t e r l o o ......................... 58
N e b r a s k a H o n o r R o l l B a n k s ......................... 29
N o r t h e r n T r u s t C o m p a n y ................................. 67
N o rth w e s te r n N a tio n a l L ife In s u ra n c e
Com pany
............................................................... 38

DES

M OIN ES

R .J . FL Y N N , PR ES.

19

P h i l a d e l p h i a N a t i o n a l B a n k ......................... 59
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 . . . . 43
R ec o rd a k C o rp o ra tio n — betw een pages
.........................................................................34 a n d 35
S

S c a r b o r o u g h a n d C o m p a n y .............3 7 -5 5 - 6 2
S t o c k Y a r d s N a t i o n a l B a n k — S t. P a u l . . 46
T

Todd C om pany

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

34

U n ited S ta te s C heck B ook C o m p a n y ...
U n ited S ta te s N a tio n a l B a n k — O m a h a ..

66
6
48

V a l l e y S a v i n g s B a n k .................................

28
25

V

72

71

W

W a n t a d ...................................................................... 59
C h a r l e s E . W a l t e r s C o m p a n y .............. 30
J a y A. W e l c h ................................................... 63
W e s s l i n g S e r v i c e s ................................................ 66
W e s t e r n M u t u a l F i r e C o m p a n y ......... 36

Iow a’s L argest B usin ess T raining 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 M O IN E S
10th and Grand
T el. 4-4221

N orthw estern Banker

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

D . L . D U N G A N , SECY.

O
O m a h a N a t i o n a l B a n k ........................................

30
42

I
I o w a -D e s M o in es
T ru st Com pany

69

L

U

II
H a w k e y e M u tu a l H a il I n s u ra n c e A ssn ..
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l R a d i s s o n .......................................................

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

It

F

G
G r e e n w a y a n d C o m p a n y ...................................
G u a r a n t y T r u s t C o m p a n y ..............................

B ro th ers

P

E l m s H o t e l ............................................................... 52
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 . . 38
F a r m e r s N a t i o n a l C o m p a n y .........................
F e d e ra l In te rm e d ia te C red it B a n k s . .. .
F in a n c ia l A d v ertisers A s s o c ia tio n ....
F i r s t N a t i o n a l B a n k — L i n c o l n ....................
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 ir s t N atio n al B a n k an d T ru st C om ­
p a n y — M i n n e a p o l i s ........................................
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 ............................

Koch

N ovem ber 19b2

70

IN THE

DIRECTORS' ROOM

The W innah!

Thanks, Pal!

The final session of a m usical com ­
petitio n w as draw in g to a close w hen
th e secretary, p e rtu rb e d at th e n o n ­
arriv a l of a n u m b er of th e trophies,
approached th e ch airm an and in ­
form ed him of th e predicam ent.
Sum m oning hs chauffeur, th e c h a ir­
m an gave him in stru ctio n s to drive
hom e and ask th e b u tle r to give him
half a dozen cups off th e sideboard.
The cups w ere d uly delivered, and
th e p re se n ta tio n of prizes proceeded
according to program .
The conductor of th e w in n in g band
w as handed a beau tifu l trophy; a n ­
o th er w as p resen ted to th e w in n in g
tenor. W hen th e leading soprano re ­
ceived h e r cup, how ever, she glanced
a t th e inscrip tio n and fainted. It read:
“Open com petition for th e best pig
in th e show .”

M aking th e rounds at F o rt Custer,
M ichigan, is th e following note: “W ith
th e ratio n in g of tire s and sugar and
scarcity of m any articles, civilians are
having a tough tim e. To bolster civil­
ian m orale, soldiers should w rite hom e
m ore often.”

On the Level
A P hiladelphia m an called up a b ird
store th e o th er day and said:
“Send me 30,000 cockroaches at
once.”
“W hat in h eav en ’s nam e do you
w an t w ith 30,000 cockroaches?”
“W ell,” replied th e householder, “I
am m oving today an d m y lease says
I m u st leave th e prem ises here in
exactly th e sam e condition in w hich
I found th em .”

Enough Said
Said th e scarf: “Go on ahead, I w an t
to neck.”
Said one eye to th e other: “J u s t
betw een us, th e re ’s som ething th a t
sm ells.”
Big rose to th e little rose: “Hiya,
bud.”
E x ecu tio n er as he pulled th e sw itch:
“T h is’ll kill you.”
Ceiling to th e w all: “Hold m e up,
I ’m p lastered .”
D entist sang to his p atien t: “The
Yanks A re Com ing.”
R obber as he jum p ed on th e scales:
“H ere’s w here I get a w eigh.”
One stocking to an o th er: “So long,
I gotta ru n .”
Salm on as he took th e hook: “I ’ll
likely get canned for th is.”
Cub to n o rth w ind: “D on’t blow so
hard, I ’m a little bear.”

Could Be
S tenographer: “Is w a te r w orks all
one w ord, or do you spell it w ith a
h y d ra n t in th e m iddle?”
N orthw estern B anker

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Federal Reserve Bank of St. Louis

N ovem ber 19'i2

Gone W ith the W ind
The talk ativ e w orkm an w as holding
fo rth to an adm iring audience in th e
village store. He w as explaining th a t
even in his job, w hich people m ight
th in k dull enough, th ere w as som tim es
quite a lot of excitem ent.
“W hy, I can rem em ber once w hen a
gas explosion tore up a m ain street
w h ere I w as w orking.”
“A nd w h at did you do?” asked one
of th e custom ers.
“A h,” replied th e w orkm an, “I tore
up a side stre e t.”

Diplomatic
“I don’t see how you can afford to
tak e so m any girls to expensive re sta u ­
ra n ts.”
“T h a t’s easy; I alw ays ask each girl
if she h asn ’t been p u ttin g on w eight,
ju s t before we go in.”

It Was Cold
“I had a devil of a tim e w ith th a t
buffalo,” said th e h u n ter.
“N ever
such a m orning in m y life. I shot it
in m y pajam as.”
“Good heavens!” m u rm u red th e
sw eet young thing. “How did it get
th e re ? ”

To the M em ory O f

—

“In th e first act of m y play,” ex­
plained th e young d ram atist, “th e
scene is laid in a cem etery.”
“So I see,” said th e m anager b ru tally
as he skim m ed th ro u g h th e pages of
m anuscript. “A nd you m ight as well
lay th e w hole th in g th e re .”

D um b W aiter
Ball player: “Say, w aiter, you seem
v ery incom petent, slow and disgusted.
D on’t you like y o u r job?”
W aiter: “H ow can I, sir, w hen I only
m ake $6 a w eek?”
Ball P layer: “Well, w hy don’t you go
to ball playing and get $5,000 a season,
as I do?”
W aiter: “B ut I don’t know how to
play ball!”
Ball P layer: “W h a t’s the diff? You
don’t know how to w ait on a table,
eith er.”

H elp! H elp!
“W h at’s all th e excitem ent?”
“Thieves looted th e B usy Bee De­
p a rtm e n t Store safe last n ig h t.”
“H ow ’d th ey get it open?”
“The police th in k th ey got th e com­
bination from th e lingerie d e p a rt­
m ent.”

“Green Pastures'
The question in th e physiology ex­
am ination read: “How m ay one obtain
a good po stu re?”
The co u n try boy w rote: “Keep th e
cows off it and let it grow up aw hile.”

Farm R elief
The salesm an had stayed at th e
fa rm e r’s hom e for a week. W hen he
w as read y to leave, he asked:
“How m uch is m y bill, H iram ?”
“W ell,” figured th e farm er, “you
had tw enty-one m eals, and you kissed
m y d au g h ter about tw en ty tim es. Do
you th in k seventy-five cents w ould be
too m uch?”

Bean Him
A teach er called for sentences using
th e w ord “beans.”
“My fa th e r grow s beans,” said th e
b rig h t boy of th e class.
“My m other cooks beans,” cam e
from an o th er pupil.
T hen a th ird piped up:
“W e are all hu m an beans.”

Bright Scholar
T eacher: “Do you know w hy th e
e a rth tu rn s round th e sun on its axis?”
Scholar: “Yes, sir. Because it don’t
w an t to be roasted too m uch on one
side.”

Nice W ork
“Rollo seem s to be v ery happy in his
new w ork. W hat does he do?”
“He is doing lite ra ry w ork.”
“L ite ra ry w ork?”
“Yeah; he takes young lady au th o rs
around and gives them experience for
th e ir confession stories.”

M i o d e r n facilities
an d p e rs o n a l a tte n tio n
a ssu re O u ts ta n d in g
S e rv ic e o n y o u r
D es M o in e s b u sin ess.
☆

ALLEY
DES MOINES
Member Federal D eposit Insurance Corporation


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Federal Reserve Bank of St. Louis

D a n k s in Iowa and throughout
the Nation welcome every oppor­
tunity for service on the home front.
Assistance in financing the War is
one such opportunity for which
Bankers are especially well qualified
through training and experience.
A s a large owner or United otates
G o v e r n m e n t B o n d s , this Ba nk ,
through its Officers and Directors,
is constantly giving careful study and
attention to all angles of this very
important subject.

If problems arise in your Bank hav­
ing to do with the distribution of
maturities, the relationship of your
Government Bond holdings to taxes,
or other investment questions, a
discussion of such matters with one of
our Officers may be helpful to you.

,owa-D es M oines N ational B ank
& TRUST COMPANY

Member Federal Deposit Insurance Corporation


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Federal Reserve Bank of St. Louis