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Federal Reserve Bank of St. Louis

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WHERE OPPORTUNITY KMII kS
Opportunity is abundant, here in the great middlewest,
where almost every farm or factory product known to
mankind is produced in great guantity and of the best
quality. We are happy to serve this land of oppor­
tunity and we offer your bank friendly, speedy and
careful correspondent banking service.

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MERCHANTS NATIONAL

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OFFICERS
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JAMES E. HAMILTON, Chairman Executive
Committee
S. E. COQUILLETTE, Chairman of the Board
JOHN T. HAMILTON II, President
H. N. BOYSON, Vice President
ROY C. FOLSOM, Vice President
MARK J. MYERS, Vice President and Cashier
GEORGE F. MILLER, Vice President and
Trust Officer
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MARVIN R. SELDEN, Vice President
FRED W. SMITH, Vice President
R. W. MANATT, Assistant Cashier
L. W. BROULIK, Assistant Cashier
PETER BAILEY, Assistant Cashier
R. D. BROWN, Assistant Cashier
O. A. KEARNEY, Assistant Cashier
STANLEY J. MOHRBACHER, Asst. Cashier
WALLACE S. HAMILTON, Building Manager

Cedar Rapids
M em ber

F e d eral

Deposit

Insuran ce

Iowa
Corporation

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


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Federal Reserve Bank of St. Louis

'

UUSPUMN COMPÌ M// J,

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pay their customers an unspoken compliment, for
La Monte Safety Papers have long been recognized

• For Samples of La Monte Safety Paper see your
Lithographer or Printer—or write us direct.

as the hallmark of quality in check protection.

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S A F E T Y P A P E R FO R C H E C K S
GEORGE LAMONTE & SON, NUTLEY, NEW JERSEY

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Federal Reserve Bank of St. Louis

N orthw estern

Banker, N ovem ber,

1946

4

TH E C H A SE
N A T IO N A L B A N K
O F T H E C IT Y O F N E W Y O R K
STATEMENT OF CONDITION, SEPTEMBER 30, 1946
RESOURCES
Cash and Due from B a n k s .............................................. $ 1 ,1 1 7 ,9 0 6 ,7 5 2 .6 9
U. S. Governm ent O b lig a tion s....................................
2 ,3 8 8 ,7 8 8 ,1 6 4 .9 3
State and M unicipal S ecu rities....................................
1 59 ,1 8 2 ,7 1 3 .2 4
Other S e c u r i t i e s ...........................................................
1 8 2 ,48 8 ,94 6 .2 2
Loans, D iscounts and Bankers’ Acceptances . .
1 ,0 8 7,0 2 6,1 58 .9 5
A ccrued Interest R e c e i v a b l e ....................................
1 1,9 08 ,0 87 .96
M o r t g a g e s .......................................................................
7 ,9 5 1 ,3 3 4 .8 4
Customers’ Acceptance Liability . . . . . .
1 0 ,4 4 7 ,3 7 0 .2 6
Stock o f Federal Reserve B ank....................................
7 ,5 0 0 ,0 0 0 .0 0
3 2,9 44 ,7 79 -3 4
Banking H o u s e s ...........................................................
Other Real E sta te ...........................................................
1 ,5 0 7,295.65
Other A s s e t s ......................................................................
2,783,923-52
$ 5 ,0 1 0 ,4 3 5 ,5 2 7 .6 0
LIABILITIES
Capital Funds:
Capital S t o c k ...........................$ 1 1 1 ,0 0 0 ,0 0 0 .0 0
S u r p l u s ....................................
1 3 9 ,00 0 ,00 0 .0 0
U ndivided Profits . . . .
6 2,1 0 2 ,3 0 3 .5 8
$
D ividend Payable N ovem ber 1, 1946
. . . .
Reserve fo r C o n t in g e n c ie s .........................................
Reserve fo r Taxes, Interest, etc...................................
D e p o s it s .............................................................................
Acceptances Outstanding . . $ 1 5,7 14,674.17
Less Am ount in P o r tfo lio . .
3 ,8 9 6,4 1 1.0 8
Liability as Endorser on Acceptances
and Foreign B i l l s .....................................................
Other L i a b i l i t i e s ...........................................................

3 12 ,1 0 2 ,3 0 3 .5 8
2 ,9 6 0 ,0 0 0 .0 0
15,1 44 ,3 44 .13
14,7 89 ,8 60 .79
4 ,6 4 2 ,0 2 5 ,1 3 8 .0 7
1 1,8 18 ,2 63 .09

1,8 1 3,3 5 8.4 9
9,782,259-45
$ 5 ,0 1 0 ,4 3 5 ,5 2 7 .6 0

United States Government and other securities carried at $660,464,340.00 are pledged
secure U. S. Government War Loan Deposits o f $359,090,263.76 and other public
funds and trust deposits, and for other purposes as required or permitted by law.

to

M em b er Federal D eposit Insurance C o rp o ra tio n

N orth w estern

Banker,


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

N ovem ber,

7946

in Cambridge, Massachusetts is one of America’s most
beloved homes, for it was there that our
favorite poet wrote many of his most de­
lightful poems.
When Henry Wadsworth Longfellow as­
sumed the professorship of modern lan­
guages and belles-lettres at Harvard, he was
fortunate in securing rooms in the Craigie
Mansion. This house in “ Tory Row” was
built in 1760 by John Vassall, a distin­
guished financier of the period. At the out­
break of the Revolution, the owner was
forced to leave the country because of his
sympathies, and the mansion was confis­
cated. It soon became the favorite rendez­

I

ongfellow house

j

home, which had always
vous of the Colonial troops,
been very dear to him, had
and Washington used it for
become the meeting place of
his headquarters for a long pe­
many illustrious guests.
riod. Mrs. Washington joined
However, his closest friends
her husband while he was sta­
were
probably the children
tioned there, and the house
of Cambridge, for the house
and grounds were the scene
was always filled with them.
of many brilliant Colonial fes­
In fact, on his seventy-sec­
tivities. In 1793, the estate was
ond
birthday they presented
purchased by Andrew Craigie,
T he first A m erican in Poets' Corner
him
with an armchair made
whose widow was eventually
in Westminster Abbey.
of wood from the chestnutforced to open her home to
tree of his “ The Village Blacksmith.”
paying guests. Longfellow was assigned an
Many of the distinguished poet’ s works
apartment which included the room used by
are based on the American scene and in­
Washington as his private chamber. In this
clude such widely read and loved title« as
room the poet wrote the immortal “ The
“ Hiawatha,” “ Poems on Slavery,” “ Tales of
Wreck of the Hesperus.” In
a Wayside Inn,” “ The New England Trag­
1843, Longfellow was mar­
edy,” “ The Hanging of the Crane,” “ The
ried to Frances Elizabeth
Old Clock on the Stairs,” “ Evangeline,”
Appleton and the couple was
and “ The Courtship of Miles Standish.”
presented with the house as
a wedding present from the
bride’s father.
During the latter years of
his life many honors were
bestowed on the poet, and his

The Home, through its agents and bro­
kers, is America’s leading insurance pro
tector oj American Homes and the Homes
oj American Industry.

* THE H O M E *
N E W

Longfellow’s study, gathering place o f nineteenth century literati.


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Federal Reserve Bank of St. Louis

F IR E

•

AUTOMOBILE

Y O R K
•

MARINE

INSURANCE

6

The river, the Delaware, was here when Philadelphia was new, carrying its
tiny colon ia l traffic. As the city and the need grew , the river grew in service to
accom m odate it—today it bears the water traffic o f a great city.
Similarly, T he Philadelphia N ational Bank has grow n with the city and the
nation—am plifying its services to meet new conditions, new requirements.
The experience o f a century is a steadying thing. T he Philadelphia N ational
lo ok s back over g o o d times and bad—wars, b oom s, depressions. T hrough
all, it has w ork ed with and fo r other banks in com m unities throughout the
nation, discharging its functions honorably and efficiently.
The form ula o f survival and grow th has been a forw a rd -look in g adaptability
based on sound banking principles—and g o o d relations with other banks
as a useful correspondent.

N orth w estern

B anker, N ovem ber,


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

1946

I» IIIK4 TOUS
EDWIN M. ALLEN
Chairman, Mathieson
A lka li Works, Inc.

M A N U F A C T IJ II E K S
T BEU S T

EOM PA NY

EDWIN J. BEINECKE
Chairman, The Sperry &
Hutchinson Co.

Condensed Statement o f Condition as at close of business

EDGAR S. BLOOM

September 30, 1946

Chairman, Atlantic, G ulf and
W est Indies Steamship Lines

ALVIN G. BRUSH
Chairman, American Home
Products Corporation

R E S O U IK C E S

LOU R. CRANDALL
President, G eorge A .
Fuller Company

CHARLES A. DANA
President,
D ana Corporation

HORACE C. FLANIGAN
Vice-Presiden t

JOHN M. FRANKLIN
President, United States
Lines Com pany

CHARLES FROEB
Chairman, Lincoln
Savings Bank

PAOLINO GERLI
President,
G erli & Co., Inc.

HARVEY D. GIBSON
President

JOHN L. JOHNSTON

; 523,928,051.50
Cash and Due from Banks
1,221,787,131.38
U. S. Government Securities .
U. S. Government Insured F. II. A.
3,756,005.67
M o rtg a g e s............................
30,862,317.34
State and Municipal Bonds
2,475,000.00
Stock of Federal Reserve Bank. .
24,375,722.37
Other S e cu ritie s.......................
Loans, Bills Purchased and Bankers’
521,056,713.20
Acceptances............................
11,079,425.61
Mortgages..................................
11,379,226.40
Banking H o u s e s .......................
Oth er Real Estate Equities
275,797.29
8,790,774,12
Customers’ Liability for Acceptances
5,699,310.27
Accrued Interest and Other Resources

President, Lambert Company

P2,365,465,475.15

OSWALD L. JOHNSTON
Simpson Thacher & Bartlett

LI A B I L I T I KS

KENNETH F. MacLELLAN
President, United Biscuit
Com pany o j Am erica

SAMUEL McROBERTS
Chairm an, McRoberts
& T egtm eyer , Inc.

JOHN T. MADDEN
President, Emigrant
Industrial Savings Bank

JOHN P. MAGUIRE
President, John P .
M aguire & Co., Inc .

C. R. PALMER
President, Cluett
Peabody & Co., Inc.

GEORGE J. PATTERSON
President, Scranton &
L ehigh Coal Co.

. $41,250,000.00
Capital .
. 41,250,000.00
Surplus .
Undivided Profits . 35,127,079.64
Reserve for Contingencies
Reserves for Taxes,
Unearned Discount, Interest, etc. .
Dividend Payable October 1, 1946. .
Outstanding Acceptances . . . .
Liability as Endorser on Acceptances.
and Foreign B i l l s .......................
D e p o s i t s ........................................

f 117,627,079.64
9,516,865.22
9,506,258.39
1,237,500.00
10,059,548.60
208,338.00
2,217,309,885.30
$2,365,465,475.15

HAROLD C. RICHARD
New York City

HAROLD V. SMITH
President, H om e Insurance Co.

ERNEST STAUFFEN

United States Government securities carried a t $177,837,111.64 are p led g ed to
secure U. S. Government W ar Loan D eposits o f $141,127,569.73 and other public
fun d s and trust deposits, and f o r other purposes as required or perm itted by law •

Chairman, Trust Committee

GUY W. VAUGHAN
President, Curtiss-Wright
Corporation

HENRY C. VON ELM
Vice-Chairman o f the Board

ALBERT N. WILLIAMS
President, W esting house
A ir Brake Company


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

Principal Office: 55 Broad Street, New York City
71 B AN K IN G

O F F I C E S IN G R E A T E R N E W f O l t K

European Representative Office: 1, Cornhill, London, E. G. 3
Member Federal Reserve System
Member New York Clearing House Association
Member Federal Deposit Insurance Corporation

N orth w estern

Banker,

N ovem ber,

1946

•

If you seek exceptional collection

m odity d ra ft, Irving stays in close touch

service, you'll be doubly impressed

with it until paym ent or definite reason

with the quick, resourceful service

fo r n o n -p a y m e n t is s e c u re d . E v e ry

which for years has been an Irving

possible m easure is taken to e xp e d ite
d e liv e ry of goods.

specialty . . . .

For quick-acting
Im m ediately upon receipt o f a com­

I m

iK G

send your commodity d ra fts to the Irving.

T r u s t

C o m p a n y

O N E W ALL STREET, N EW Y O R K 15, N. Y.
Member Federal Deposit Insurance Corporation

N orthw estern

Banker, N ovem ber,


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

¡9 46

collection service,

9
W í 'r t r

E d i t o r

DES MOINES
O ld est Financial Journal West of the Mississippi

The following letters were received
from Northwestern Banker readers.
Your views and opinions on any sub­
ject will be gladly published in this
column.
"Fascinatingly Written"
“ I would appreciate several copies o f the
colored picture that appeared in the current
issue of the N orthwestern B anker . Thank
you.
“ I look with anticipation each month for
the N orthwestern B anker because it con­
tains so many interesting articles pertinent
to the times in addition to being so fascinat­
ingly written.
“ Yours for continued expert advice to the
bankers of the Great Northwest.”
Herman B. Laurence, Assist­
ant Cashier, First National
Bank, Fairmont, Minn.

t

51st Year

•

No 712

IN THIS NOVEMBER, 1946, ISSUE
EDITORIALS
A cross the Desk from the Publisher............................

......................... 10

FEATURE ARTICLES
D ear E ditor .........................................................................................................
Frontispage .......................................................................................................
News and View s o f the Banking W orld ....................... Clifford De P u y
Bankers Say Saturday Closing W ould H am per Good Service— A
N orthw estern Banker Survey..-...........................................
W ork, W eather and W arm W elcom e Feature F A A in ’ F risco ........
.................................................... ............................ H en ry H. H aynes 16,
H ow to Solve the Legal A ngles in M aking G. I. L oan s.....................
..................................................................................W a lter T. Robinson
About Bankers Y ou K now — H enry E. A tw ood .........................................
Can F oreclosure Be Made A gainst A dm inistrator o f Insolvent
E state?— Legal ............................................. .........................................
Envelope M anual fo r Banks........................................................................

9
13
14
15
17
18
20
22
24

BONDS AND INVESTMENTS
"Very Timely Survey"
“ Your survey entitled ‘Why 1 Chose My
Bank’ is very timely and very interesting.
What surprised me was the eleventh reason.
I have always been under the impression
that personal solicitation ivas an important
factor. I think that ties in somewhat with
the other reason, ‘I knew someone in the
bank’ .”
B. B. Brwbacher, President,
The Toy National Bank,
Sioux City, Iowa.

"A Dinger"
“ Your article on ‘Why I Chose My Bank’
is a ‘dinger.’ We are going to do something
about it in our bank.”
V. W. Johnson, President,
First National Bank, Cedar
Falls, Iowa

"Pass It On"
“ Many thanks for sending me a reprint
of the article ‘Why I Chose My Bank,’ from
the October N orthwestern B anker .
“ I will take this home tonight and read it
over the week-end and will pass it on to
those here in the bank I think might be
interested in it.”
O. G. Alexander, Assistant
Vice President, Bank of
Manhattan Company,40 Wall
Street, New York.

"Each Issue a Humdinger"
“ I have no way o f telling how long I will
be around. Get weaker from day to day,
(T u rn to pa ge 24, p le a se !


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Federal Reserve Bank of St. Louis

Com mercial Banks Should W atch the M unicipal M arket.............
..................... ................................................................... Raym ond T rig ger 33

INSURANCE
Bank Credit Officer Must Pass on Adequacy o f Insurance on
L oans...................... ..........................................................James R. H ale 37

STATE BANKING NEWS
M innesota News ......... .................................................-...... -............................
Tw in City N ew s.........................................................................................
South Dakota N ew s...................
Sioux Falls N ew s.....................................................................
N orth Dakota N ew s............................................................................................
Nebraska News ...................
Nebraska Convention Has Record A ttendance in Lincoln..............
.............. .......... ........... .............................. .................. .Ben H aller, Jr.
Omaha News ..............................................................................................
Iowa News ...........................................................................................................
Sioux City N ew s............................
Des Moines N ew s...............................................................
Conventions .......................... .......................-.....................................................

41
43
47
47
49
51
52
57
61
67
68
72

IN THE DIRECTORS' ROOM
A F ew Short Stories to Make You L au gh -------------

NORTHWESTERN

74

BANKER

527 Sev en th S t ., Des M oines 9 , Io w a , Telephone 4-3163

CLIFFO RD DE PUy, Publisher
R A LP H W . M O O R H E A D
A s so c ia te Publisher
E L IZ A B E T H
A d v e rtisin g

CO LE
A s sista n t

editor

BEN J . H A L L E R , JR
A s so c ia te E d ito r

H A ZE L C. H A D LEY
A u d ito r

S A D IE E. W A Y
C ircu la tion D epartm en t

H EN RY H . H A YN ES

N EW

Y O R K O F F IC E

Frank P. S ym s, V ice P re sid e n t, 505 Fifth A v e ., S uite 1806

N orthw estern

M U rray H ill 2-0326

Banker, N ovem ber,

1946

IO
as a ‘ bible’ by bankers generally. The informa­
tion furnished should be of real assistance to
many bankers in preparing yearly tax reports
and in many instances avoid the need and ex­
pense of outside tax service.’ ’
Since all taxes now rank as the second largest
individual cost factor it is highly important that
every bank should know more about proper
methods of keeping taxes reduced to a minimum.

jb e a i Z lU t t R.aa'ievelt:

A c ro s s th e D e sk
F r o m t lie Ih i III ¡ s l i e r
S b e a b j ja m e i <Jl. K e n n e d y :

As vice president of the Philadelphia National
Bank and chairman of the special committee
which prepared the booklet “ Know and Accrue
Your Taxes,’ ’ we want to congratulate you on
the fine piece of work which you and your asso­
ciates have done.
Your work was undertaken on behalf of the
Bank Management Commission of the American
Bankers Association and you deserve real praise
for your untiring efforts.
The question of taxation as it applies to banks
is a very important one and your booklet gives
a careful explanation and a plan for periodically
determining and accruing tax liability on earn­
ings and profits.
The statement in your Foreword explains very
well the object of your booklet: “ At the present
time there are many complications and techni­
calities in federal income taxation. The material
in this study was prepared from an educational
point of view to acquaint bankers with these
complications and technicalities. It has been
streamlined as much as possible and at the same
time reflects a full picture. All the essential and
fundamental factors needed not only to accrue
income taxes but to prepare the tax reports are
shown in the text, and it can be used more or less
N orth w estern

Banker, N ovem ber,


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

1946

Now that the November 5th elections are over
and the results speak for themselves, we cannot
overlook a statement which you made regarding
Senator Arthur H. Vandenberg, Republican Sen­
ator from Michigan and a representative at the
peace conference in Paris.
In our opinion, Senator Vandenberg during the
past few years has grown tremendously as a
statesman and representative of the United States
in our discussion of foreign affairs.
He has called a spade a spade and does not be­
lieve in any pussyfooting in our relations with
Russia.
Yet in a speech which you made recently, Mr.
Roosevelt, you said that, “ Senator Vandenberg
is a betrayer of the people of the United States.’ ’
It was interesting to note that your speech was
made in New York at a dinner sponsored by the
Independent Citizens Committee of the Arts,
Sciences, and Professions which is noted for its
left wing communistic tendencies.
Who do you think is doing the real job of be­
traying our country— Senator Vandenberg or the
communists ?

ea*i G. W . H ailey:
There were a number of very important resolu­
tions passed when you were elected president of
the American Bankers Association and one of
them which impressed us very much had to do
with the nationalization of business and industry
which is taking place in many countries through­
out the world.
The association very wisely opposed any such
trend in the United States in its resolution which
said.:
“ The governments of many countries are turn­
ing toward nationalization of business and in­
dustry in the belief that it will bring about eco­
nomic stabilization in their countries without
realizing that nationalization of the industries
upon which people depend for their very exist­
ence is certain to depreciate the ability of the
people of the nations to maintain and raise their
standards of living.

11
“ In the interest of all countries of the world,
we recommend that all peoples strive to create
a system of government under which private en­
terprise can prevail.
“ This applies to the people of the United States
equally with those in other areas as the private
enterprise system under which we have built up
such a marvelously efficient and productive econ­
omy can easily be destroyed if we are not alive
to its preservation.”
Bankers, businessmen and industrialists in the
United States must continue to prove that cor­
porations and organizations privately operated
and owned can and will continue to give better
service and better results to their depositors and
to their customers than could possibly be ob­
tained if their institutions were nationalized and
operated by the government.
The nationalization of business in America is a
threat and at the same time a challenge which
we are sure will not go unheeded.

other workers. Construction is at a standstill;
offices are closing; the garment trades are
strangled; the food shops are empty; and the
city’s determination to run the blockade— for that
is exactly what it is—anticipates clashes, possibly
armed clashes. Armed clashes in the roads and
streets are civil war.
“ Yet the income of the average man in the
United States is the highest in history. Most of
the rest of the world is starving because of phys­
ical circumstances beyond control. Our produc­
tion out of which alone anyone can be fed, clothed,
and housed, is halted not because our plants are
being dismantled by victors, but because they are
closed down by the very persons whose own liveli­
hoods depend on their continuous operation.”

jbea/i Jiettsuf, tf-atid / / :

'ib e a 'i ¡J a le jx lt £ .

For years your company has been known to
pay high wages to workers, therefore, when you
speak on the problems of labor, what you say is
worth listening to.
Recently you said: “ Labor’s right to strike
is being widely misused. Such familiar practices
as ‘ feather-bedding’ and the slow-down strike
spring from reactionary thinking by labor and
lead to decreased production. This is exactly the
opposite direction frcm the one we must take if
we are to achieve our goals. It (the strike) has
become today a political weapon for the acquisi­
tion of power, it has become a method for estab­
lishing or entrenching labor monopolies. It has
been and is being used by enemies of American
freedom to cause domestic unrest and to cut our
productivity. The indiscriminate use of the strike
must certainly have the effect of reducing the
standard of living of the wage earner by raisingcosts.”
There are very few who will deny that the
strike is being used as a political weapon and that
it is being used by outside forces to cause Ameri­
can unrest. Surely the best elements among
American labor in the United States are not in
favor of these trends within their own organ­
izations.
When the shipping strike and the truck drivers
strike tied up New York a few weeks ago, Dorothy
Thompson remarked: ‘ ‘ Our greatest metropolis is
as paralyzed as though blockaded by a foreign
army. A few thousand truck drivers, who, their
own leaders admit, are ‘ out of control’ are closing
down the working places of tens of thousands of

With some economists predicting a “ slight
recession” and with others saying that we may
face a “ real depression” we were interested in
your speech before the Consumer Bankers Associa­
tion expressing the idea that there are many fac­
tors which indicate that we do not necessarily face
another depression.
Your experience as president of the Morris
Plan Bank of Georgia at Atlanta has given you
an interesting background on which to base your
opinions.
It has been our belief, Mr. Birnie, that there is
no need for the United States to face a serious
depression if we can once again get “ our team”
to work as it did during the war.
We cannot produce if we constantly have
strikes, and labor in turn cannot receive the
wages it would like to get if it doesn’t produce.
Perhaps we need a newr coach, but whatever the
difficulty may be, we have the money to buy, we
have the demand for goods and the economic
future of this country should be one of prosperity
unless we decide to commit business suicide by
refusing to produce the articles which are so
much needed right now.


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Federal Reserve Bank of St. Louis

It seems to us that when our own citizens be­
come more powerful as enemies from within than
foreign enemies are from without, that our labor
and management problems are due for drastic
revamping and changes.

N orthw estern

Banker,

N ovem ber,

1946

12

We are deeply

Thankful
for the everincreasing number
of Correspondent
Accounts it is our
pleasure to serve.

Central N ational B ank
&

T r u st

M E M B E R

N o rfJiw e sfe rn

Banker,


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

Co m pany

F E D E R A L

N ovem ber,

1946

D E P O S I T

★

D es M oines, i owa

I N S U R A N C E

C O R P O R A T I O N


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Federal Reserve Bank of St. Louis

13

N o r t h w e s t e r n B an ke r, N o v e m b e r ,

1946

14

N ew s

tu n I
O f THE BANKING WORLD
By C liffo r d De Puy

J

OSEPH STAGG LAWRENCE, vice

president, Empire Trust Company,
New York, edits their monthly
“ Letter” and does a mighty fine job of
it. In one of his recent statements he
said, “Psychologically the country has
softened and it is here that we find the
greatest contrast between 1946 and
1846. In the latter year the spirit of
risk-taking, the voluntary and cheer­
ful assumption of hardship was in the
air. Acquisitive Americans of means
wanted more in an age in which the
pursuit of wealth required no apol­
ogy, success invited no penalty.”
Nelms Black, Oklahoma business
man, in a recent book on “How to
Organize and Manage a Small Busi­
ness,” published by the University of

Oklahoma press, says that, “400,000
Americans go into business for them­
selves each year, but only 35 per cent
succeed, the other 65 per cent fail
within 2 years for two reasons, lack
of experience, and because of the high
cost of mistakes.” Also, Mr. Black

pointed out that 50 per cent of small
business failures keep no business
record.
James W. Hubbell, vice president of

the Bankers Trust Company, was
given verjr favorable mentiton in a
recent article in the Saturday Evening
Post about Des Moines. Referring to
Mr. Hubbell it said, “Jim was an ex­
cellent polo player, and it is the fond
conviction of some lowans that he
would have been national amateur
golf champion if he had been loyal
to his putter and traitor to his
money.”

The article might have added that
on the Wakonda Country Club course,
one of the toughest in the nation, Jim
frequently shoots a 71 which is 2 un­
der par for the course.
In addition to his banking activi­
ties, Jim is also secretary-treasurer of
the Equitable Life Insurance Com­
pany of Iowa, of which his brother,
Fred W. Hubbell, is president.
Incidentally, Fred was also an ex­

I'iimneiisl A fteertisinfi

cellent polo player although this was
not mentioned by the Post.
Mrs. Henry H. Haynes, wife of the
editor of the N orthwestern B anker , at­
tended the Financial Advertisers Con­
vention with her husband in San Fran­
cisco, and in reporting on some of the
things she saw, said, “ From the mo­
ment we drove onto the Oakland Bay
Bridge, San Francisco thrilled me.
Through the tunnel, off the bridge,
onto California Street, where I fairly
screamed when I saw the hill we had
to climb.”
The next day Mrs. Haynes with some
other friends, was taken for another
drive around the city which she de­
scribed as follows: “ Four of us were
driven down to the docks to see the
huge ships, onto the fish wharf,
around to the Yacht Club, back up to
the top of Telegraph Hill where we
all alighted and stood in silence at
the beauty. There the moon shone
down on us and the Bay in all her
glory, twinkling lights on Treasure
Island ahead of us, to the left the Gold­
en Gate Bridge lighted, to the right
the Oakland Bay Bridge, then we
turned around and had this wonder­
ful view of the city. The ‘Mark Hop­
kins’ with its huge blue star ablaze,
and the rest of the skyscrapers bathed
in moonlight. Reluctantly we left
here and drove through China Town,
up Powell Street hill and on to our
hotel.”
Miss Joan Holmes, daughter of
George YV. Holmes, president of the

First National Bank of Lincoln, was
selected as one of the Ak-Sar-Ben
countesses from Lincoln for the coro­
nation ball which was held in Omaha
last month. This is the first resump­
tion of those famous festivities since
1941.

NEW FAA OFFICERS. Seated, (le ft), Swayne P. Goodenough, vice president,
Lincoln Rochester Trust Company, Rochester, New York, new president, and
Robert Lindquist, assistant vice president, American National Bank & Trust Com­
pany, Chicago, first vice president.
Standing, left to right, Allen Crawford, vice president, Bankers Trust Company,
Detroit, second vice president; Chester E. Price, advertising and publicity manager,
City National Bank & Trust Company, Chicago, treasurer, and John de Laittre, vice
president and treasurer, Farmers & Mechanics Savings Bank, Minneapolis, third
vice president. (See page 16 for complete coverage.)
N orthw estern

Banker, N ovem ber,


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Federal Reserve Bank of St. Louis

1946

Frank C. Ratlije, president of the
Chicago City Bank & Trust Company
and of the Mutual National Bank of
Chicago, and immediate Past Presi­
dent of the American Bankers Asso­
ciation, was honored by Monmouth
College of Monmouth, Illinois, when
the college conferred upon him a de­
gree of Doctor of Laws.
This high honor came to Mr. Rathje
immediately after the completion of
an outstanding year of service to
(Turn to page 70, please)

Hauliers
W o u ld

SitySaturday
H a m p er H ood

Closing Laws Will Curb Individual Rights and
Aid Subsidized Government Lending Agencies
4 NORTHWESTERN BANKER
SURVEy

particularly along the eastern sea­
board. If there is strong sentiment
among Iowa bankers for similar au­
thority, there would appear to be no
valid reason why it should not be
sought from our General Assembly.
“ There are many bankers who be­
Should laws be changed so that lieve that our institutions are open to
banks could legally close on Sat­ the public too few hours even now,
urdays the year around? Close and that our customers are entitled to
summer months only?
more, and not less, service. They feel
The response to this question, as in­ that the tendency to crowd too much
dicated in the answers below, shows activity into a shorter work week is
that these midwestern bankers, in all already overdone. These people also
except one case, mention the word feel that competing financial institu­
“service.” In spite of the fact that tions and lenders, in which the gov­
they undoubtedly would enjoy another ernment subsidized agencies (to whose
free day, they first think of how serv­ methods we bankers often object) are
ice to their customers would be af­ included, will find shorter banking
fected. Since this is primarily an agri­ hours an added competitive advantage.
cultural belt, most feel that closing all It has also been said that less efficient
day Saturday would not be a wise bank help would result from the di­
move. Here are their replies:
vided attention caused by more free
time.
Ben B. McNair, vice president and
“Of course these arguments have a
cashier, Columbus Bank, Columbus
strong validity. On the other hand, we
Nebraska: “ The question of favoring
might inquire if they give full recog­
laws that would make it legal for
nition to the impact which the 40 hour
banks to close one day per week or
week and the minimum wage laws
Saturday afternoon, seems to me to be
have had on rising bank costs. Might
the very thing that most bankers like
there not be an added number of jobs
to eliminate, ‘regulations!’
available, if open hours were fewer?
“For we who claim to favor indi­
Certainly the technological advance in
vidual enterprise and initiative, to
bank accounting and the machinery
favor laws that tend to curb our indi­
with which to do it now requires less
vidual rights seems absurd.
man hours per unit of production.
“Bankers spend their money adver­
Finally, most bankers need to give at­
tising the service they offer the public
tention to the agitation for better
and then serve them with shorter
wages and working conditions in
hours than any other business. After
banks coming from the union labor
all a bank has little to sell that could
movement, just now being felt in this
not be obtained from a governmental
country.
agency, so why penalize the people
“ In between these viewpoints will
that make it possible for you to exist?
no doubt be found the proper key to
“ I personally feel that this question
procedure. In our neighborhood we
is not worthy of consideration in the
have closed on Saturdays at 1 o’clock
rural communities.”
for many years and usually we are out
V. W. Johnson, president, First Na­ of the bank by 2:30 at the latest. Our
tional Bank, Cedar Falls, Iowa; “Legis­ staff seems to like the arrangement
lative action giving authority to banks and the public has accepted it very
to close one day per week in the sum­ graciously. We are therefore well
mertime, or the full year around, has satisfied with the status quo but if
been obtained in several of the states, there were a concerted movement
N THE wake of nation-wide discus­

I

sion on the subject of banking hours,
the N orthwestern B anker recently
made a survey among midwestern
bankers, asking them the following
question:


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Federal Reserve Bank of St. Louis

among Iowa bankers for one day per
week closing legislation, we would
have no objection to the move insofar
as our bank is concerned.”
Blanding Fisher, Ramsey County
National Bank, Devils Lake, North
Dakota: “ In this part of the country
where our business is so largely agri­
cultural, I doubt very much if the
banks could close on Saturdays with­
out greatly inconveniencing our farm
customers.
“Here in Devils Lake, we close at
one o’clock on Saturdays and find that
this works very nicely. We also feel
that it would not be advisable to
change our present days of business
so that there would be any day of the
week on which we would not give
service to our customers, except on
Saturday afternoons and the legal holi­
days that we observe.”
Charles Kriz;, cashier, United State
Bank, Cedar Rapids, Iowa: “We think
that our community is not quite ready
for Saturday closing. However, we
feel that Saturday closing should be
considered as one of the possibilities
of banking hours of the future.
“ From our standpoint at the United
State Bank it will really be better to
close some other day.”
Marie Bechtel, cashier, The Bank of
Cresbard, South Dakota: “As I see it
in our community, depending on agri­
cultural resources, it would not be for
the best to close on Saturdays at any
time of the day or months during the
year or any other day of the week.
“We are rather handicapped with
help and we do try to get our work
done within the banking hours, as it
is, and feel as though if we did not
take care of it daily, the work would
pile up and not be taken care of as it
should be. Therefore, I think we
should keep our banking time as we
have it now and give our customers
that same service as we have in the
past.” # #
N orth w estern

Banker,

N ovem ber,

1946

16

117ork 9 W ea th er a tut W arm W etenm e

bea i are FAA ia 9F risco
Convention Committee Convinces Critics That
California's Claim to Cordiality Is Correct
By HENRY H. HAYNES, Editor
The NORTHWESTERN BANKER
WAYNE P. GOODENOUGH, vice
president of the Lincoln Rochester
Trust Company, of Rochester,
New York, was elected president of the
Financial Advertisers Association at
the thirty-first annual convention of
the organization held last month in
San Francisco. Mr. Goodenough suc­
ceeds Dale Brown, assistant vice presi­
dent of the National City Bank, Cleve­
land, to that executive office.
Registration at the convention was
550, with 39 states and Canada repre­
sented. Total membership in the FAA
is now 1,138. Dale Brown said in his
report that during his term of office he
had traveled 28,000 miles and visited
24 states.
Other officers named were: first vice
president, Robert Lindquist, assistant
vice president American National
Bank & Trust Company, Chicago;
second vice president, Allen Crawford,
vice president Bankers Trust Com­
pany, Detroit; third vice president,
John deLaittre, vice president and
treasurer, Farmers & Mechanics Sav­
ings Bank, Minneapolis; and treasurer,
Chester L. Price, advertising and pub­
licity manager, City National Bank &
Trust Company, Chicago.
Directors elected to serve the FAA
for the coming year were Dale Brown;

S

Raymond K. Meixsell, public relations
director, Troy Savings Bank, Troy,
New York; Paul A. Albus, assistant
vice president, Continental Bank &
Trust Company, New York City; Grace
M. Mack, advertising manager, Missis­
sippi Valley Trust Company, St. Louis;
John L. Chapman, trust officer, City
National Bank & Trust Company, Chi­
cago; Lee Matthews, executive vice
president, American Trust Company,
South Bend, Indiana; Hugh J. Bernard,
vice president, Second National Bank,
Houston, Texas; H. G. Nicholls, cash­
ier, First National Bank, Madison, Wis­
consin; Leslie K. Curry, vice president,
Mercantile Commerce Bank & Trust
Company, St. Louis. Charles B. Wilbar, assistant cashier, National Shawmut Bank, Boston; Ruel Smith, Time,
Incorporated; O. E. Manning, manager,
Grey & Bruce Trust & Savings Com­
pany, Owen Sound, Ontario, Canada:
E. S. Patterson, president, FirstCentral Trust Company, Akron, Ohio;
Louis H. Bieler, president German­
town Trust Company, Philadelphia:
Lester B. Johnson, advertising man­
ager, American Trust Company, San
Francisco, and H. L. Flynn, assistant
vice president Cleveland Trust Com­
pany.
The delightful hospitality of the

FAA hosts on the coast and the ideal
weather experienced during the con­
vention combined to make the 1946
meeting in San Francisco one long to
he remembered.
Everything that
could possibly contribute to the com­
fort and pleasure of the many visitors
from “inside” was anticipated, and
reversing the oft-heard statement, the
San Franciscans admitted the con­
tinued sunshine was just a little “un­
usual.” (To those interested, a little
fog did roll in three days after the
convention closed.)
Two things impress a “first-timer”
about an FAA convention. The first
is the good-fellowship enjoyed among
the members—it seems to be a contest
to see who will be the first to extend
a hand of greeting, and when one finds
everybody doing that it makes for a
feeling of brotherhood that can be ex­
perienced no other way. Second, FAA
conventions are “work” meetings, not
just by the officers and those members
from the host city, but by everyone—
breakfast every morning at 7:45 with
everybody registered at their tables by
that time, a luncheon every noon, and
a dinner every night, and of course
morning and afternoon departmental
and general sessions—and—all attend
(Turn to page 69, please)

A t th e F A A in Snn Franeist-o ---- ►
THROUGH

THE

RANGE

FINDER

on

his

camera,

the

N orthwestern B anker photographer spotted a number of dele­

gates attending the P A A convention in San Francisco and their
pictures are shown on the opposite page. Reading from left
to right, they are:
1. David R. Houser, assistant vice president, Germantown
Trust Company, Philadelphia, and Harry G. Duntemann, assist­
ant cashier, First National Bank, Chicago, talking over one of
the receptions held the night before.
2. D. J. Wessling, president, Wessling Services, Inc., Des
Moines, and Chauncy É. Brockway, president, First National
Bank, Sharon, Pennsylvania, enjoying a few m inutes’ visit
between meetings.
3. Russell G. Palmer, advertising and publicity, Bank of
America, San Francisco, watches as C. A. Hemminger, adver­
tising manager, Bankers Trust Company, New Y ork City, checks
over the remainder o f the d a y ’ s program.
4. Preston E. Reed, executive vice president o f the FAA,
listens as his assistant, Lucy David, reads from the notebook
o f a busy secretary.
5. Lester B. Johnson, advertising manager, American Trust
Company, San Francisco, and general chairman of the conven­
tion, and L. E. Townsend, vice president, Bank of America,
San Francisco, and chairman o f the convention executive comN orthw estern

Ban ke r, N o v e m b e r ,


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Federal Reserve Bank of St. Louis

1946

mittee, chat with Harold Klein, vice president, lowa-Des Moines
National Bank and Trust Company, Des Moines.
6. Anna T. Olsson, advertising manager, Live Stock National
Bank, Omaha, and Grace M. Mack, advertising manager, M is­
sissippi Valley Trust Company, St. Louis, brush up on a few
program notes before attending the next meeting.
7. Robert Lindquist, assistant vice president, American Na­
tional Bank, Chicago, and new first vice president o f the FAA,
receives congratulations from John F. Wilhelm, president,
Hoosier State Bank, Hammond, Indiana, and J. M. “ Pete”
Easton, vice president, Northern Trust Company, Chicago.
8. Merrill Anderson, president, Merrill Anderson Company,
New Y ork City, and Albert E. Felsted, advertising manager,
First National Bank, St. Paul, take time out for a relaxing
smoke.
9. R. W. Dawson, Albert Frank-Guenther Law, Chicago,
visiting with Mrs. Waibel and J. K. Waibel, advertising man­
ager, Continental-Illinois National Bank, Chicago.
10.
An all-Iowa group meets in the lobby. Frank Warden,
vice president, Central National Bank and Trust Company, Des
Moines; Mrs. Frank Warden; Mrs. C. F. Harris; C. F. Harris,
president, State Bank, Gladbrook; Mrs. L. W. Ross, and L. W.
Ross, president, Citizens State Bank, Oakland.


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Federal Reserve Bank of St. Louis

18

f f o*f* lo Solve Ihe IaujuI .1 n yles

involved in Jiahiny lì. f . Loans
Your G. I. Loan Question Sox
By WALTER T. ROBINSON
Iowa Loan Guarantee Officer, who
answers the things you want to
know about the Servicemen's
Readjustment Act

Q. Is a loan for the purchase of a
building located on leasehold ground
to lie classified as a real estate loan or
a personal property loan, for the pur­
pose of determining whether the ap­
plicant is entitled to a maximum guar­
anty of $4,000, under a real estate loan,
or a maximum guaranty of $2,000,
under a non-real estate loan?

eral rights). It appears, therefore, that
there is, in fact, no reason, insofar as
the guaranty by Veterans Administra­
tion is concerned, for a lender to hesi­
tate about making loans otherwise
proper on property on which the min­
eral rights are outstanding.

Q. To what extent is guaranty or in­
surance credit available in connection
Section 36:4301 (bb) of the Regu­ with loans to veterans when the title

A.
lations states: “ Real estate loans—
Any obligation incurred for the pur­
chase of real property or a leasehold
estate as limited in these regulations,
or for the construction of fixtures or
appurtenances thereon or for altera­
tions, improvements or repairs there­
on required by the regulations to be
secured by a lien on such property or
is so secured.”
Section 36.4350(a)
gives three types of title—fee simple,
leasehold, and life estate. It points
out that a leasehold estate, running or
renewable at the option of the lessee
for a period of not less than 14 years
from the maturity of the loan consti­
tutes an eligible real estate loan.
Therefore, it is the opinion of this
office that a loan on a building located
on leasehold ground, said leasehold
complying with the requirements of
the regulations, is classified as a real
estate loan within the purview of this
Act.
Q. The regulations state that the
veteran must become vested with a
merchantable title. In case in the con­
veyance of title or deed, the mineral
rights are reserved, is a loan based on
such title eligible under the Act?

N orth w estern

B anker, N ovem ber,

1946

A. In such cities or towns where it
is customary to furnish abstract from
the plat and in such places as lending
agencies, to wit: insurance companies,
savings and loan associations, banks,
etc., follow this practice and it is good
commercial usage, there is no reason
why it should not be followed in fur­
thering purchase of real estate under
the Servicemen’s Readjustment Act.
This decision is based on the premise
that abstracts of this nature normally
carry a general qualifying clause show­
ing that at the time of the plat the
title, up to and including the platting,
has either undergone litigation or ju­
dicial determination such as to base
a good and merchantable title of prop­
erty that has been subsequently
platted.
Q. When a note has been drawn for
the maximum maturity of 25 years,
and in the event delayed amortization
in new construction cases beyond the
permissible maturity of 25 years, what
process should be followed?

W A L T E R T. ROBINSON
Answers Your Questions

to the home or other real estate is
taken in both the name of the veteran
and the veteran’s spouse? (It is im­
material whether the veteran is a male
or female.)

A. It has been determined that the
A.
Yes. Section 36:4350(b) appears guaranty is to be measured by the
clearly to make eligible for the guar­ total value of the property owned by
anty a loan secured by proper lien, the veteran and his or her spouse,
notwithstanding that the veteran does where the ownership is based on the
not become vested with a merchant­ usual husband and wife relationship,
able title to the entire fee simple, if the whether the property is held as (1)
only reason he does not acquire such community property; (2) as a tenancy
title is that he does not acquire the or by the entirety; (3) in joint ten­
subsurface rights (outstanding min­ ancy, or (4) as a tenancy in common.

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Federal Reserve Bank of St. Louis

Q. Is it required that the abstract of
title go back to the Government, or
may the abstract be furnished from
the plat?

A. The guaranty of loans otherwise
valid, aside from the deviation as to
the maximum prescribed maturity, is
not vitiated by reason of the fact that
such loans will mature in full in
slightly more than 25 years. The only
loss that could be suffered by the lend­
er because of this excessive maturity
would be as to the guaranty of such in­
stallments as fall due after a 25-year
period. However, to avoid any such
deviation and possible slight loss, an
extension agreement may be entered
into between borrower and lender, set­
ting out the delayed amortization dur­
ing the process of construction, and
stating that the delayed payments will
be paid concurrently with, and as a
Turn to page 20, please)

19

Prompt Transit bervice


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Federal Reserve Bank of St. Louis

THE
OMAHA
NATIONAL
BANK
N orth w estern

Banker,

N ovem ber,

1946

I b o n t

H

u n k e r s

pany, holding that position until 1933
when he was elected vice president
of the First National Bank of Minne­
apolis, where he remained for three
years. It was in 1936 Mr. Atwood
began a nine year connection with
the B. F. Nelson Manufacturing Com­
pany as vice president and a director.
Since April, 1943, he has been a di­
rector of the bank and served on its
trust committee. When the late Ly­
man E. Wakefield was named chair­
man of the board of directors in June,
1945, he was recalled to full time duty
at the bank in his present chief exec­
utive capacity. However, he is still
a director of the B. F. Nelson Com­
pany.
Mr. Atwood is a registered Repub­
lican. His principal hobby is golf
and he is a member of tlie Minneapo­
lis, Minikahda, Woodhill, Minnesota
and Chicago clubs.

G. I. QUESTION BOX
(Continued from page 18)
part of, the final installment within
the permissible 25-year maximum
period. In other words, the delayed
installments would be ballooned and
made to mature as of the final ma­
turity date within the 25-year period.
An executed copy of such extension
agreement should be placed of record
and submitted to the Loan Guarantee
Office. In such cases, it is not manda­
tory that the loan be changed unless
the parties concerned desire to do so.

H EN RY E. ATWOOD
President, First National Bank in Minneapolis
‘ Noted for his ability to inspire loyalty and confidence among his associates’

M

OVING forward with the self-confidence and business acumen that has
been inspired by 27 years of experience in industry and finance, Henry
E. Atwood today holds the presidency of one of the middlewest’s finest bank­
ing institutions, the First National Bank of Minneapolis.

Anyone meeting Henry Atwood is immediately impressed with his straight­
forward cordiality and sincerity, liis wonderfully engaging personality and
his sense of humor. Mr. Atwood is noted for his ability to get along with
other people and to inspire loyalty and confidence among his associates.
He was elected president of the First National Bank June 29, 1945, and
since taking over bis duties, has displayed a remarkable capacity for sensing
promptly the essentials of any situation under discussion and penetrating
without delay to the heart of the matter. His judgment, with respect both
to persons and events, reflects his varied experience as teacher, investment
banker, manufacturer and commercial banker.
Henry Atwood was born at Keeseville, New York, on November 22, 1895.
He entered Dartmouth College in 1909, received his Bachelor of Arts degree
from that school in 1913 and his Master’s degree from Harvard in 1914. On
June 19, 1917, he was married to Marian Woodward and they have two sons
and one daughter, John A., Roger W. and Carol Atwood Daniels. During
World War I Mr. Atwood served in the Cavalry from 1917 to 1919 and was
discharged as a Captain.
After completing his army service in 1919 he entered the investment
business. In 1924 he was named bond officer for the Minneapolis Trust ComN orth w estern

Banker,


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

N ovem ber,

1946

Q. In the ease of personal property
loans, are veterans’ guaranteed and
likewise insured loans excepted from
Regulation W?

A. Section 8(o) of Regulation W
provided for the exception from Regu­
lation W of loans guaranteed under
the Act. At that time, we had only
guaranteed loans. The amendment to
the Servicemen’s Readjustment Act,
which provided for guaranteed or in­
sured loans, caused the question to be
raised as to whether both guaranteed
and insured loans were exempt from
Regulation W. It has since been ruled
by the Federal Reserve Board that due
to the fact that the objective of both
the guaranty and the insurance is the
same, that consequently both guaran­
teed and insured loans are excepted
from this Regulation.
Q. Can a veteran who is a minor ob­
tain a guaranteed loan in Iowa?

A. No. A minor who is not married
cannot make a legal contract under the
Iowa statutes. It is contemplated that
a bill will be introduced at the next
session of the Iowa Legislature to
remedy this situation.

21

78 Years o f

Specialized Experience


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Federal Reserve Bank of St. Louis

^T pH IS B A N K

has been closely identified with the live

stock industry in Chicago for more than three-quarters
o f a century. W e know the importance o f speedy transmis­
sion o f proceeds o f live stock sales and for years have had
these credits in the hands o f M idwest bankers the next day.
This is only one o f our many seivices used

by bankers

throughout the M iddle West.

—

...

—

LIVE STOCK
BA N K op*

- Y a / io n c f /

€ C € tO t2

ESTABLISHED 1868

U N IO N STO C K YARDS

M em ber Federal Deposit Insurance Corporation

N orthw estern

Banker,

N ovem ber,

1946

22

LEGAL

( V#fi F o iw lo su r v itv
. I dininistrator o f in sol von! Eslulo?
Q.

Under South Dakota law an un­
paid chattel mortgage ceases to be
valid as to the mortgagor’s creditors
six years after it is filed of public rec­
ord. (¿ray held such a mortgage ex­
ecuted in his favor by Best, who died
approximately seven years after its
tiling.
Best’s estate was insolvent,
(¿ray sought to foreclose against the
administrator who resisted, asserting
that, since the estate was insolvent,
Best’s creditors, who were numerous
and included two banks, were the real
parties in interest and that the mort­
gage was not valid as to them. Should
the administrator be sustained in his
contention?

Yes. The South Dakota Supreme
Court so held in a recent decision
which was one of first impression in
that court. In a well reasoned opinion
by Judge Smith it was pointed out
that the authorities are in conflict but
that the decision rendered by the court
is in accordance with the majority
view which is that an executor or ad­
ministrator of an insolvent estate may
successfully resist, in the right of the
creditors, the foreclosure of a mort­
gage void as to them.

Q.

Suppose that, in the preceding
question, Best’s estate had been sol­
vent and ample to pay all of his credit­
ors. Suppose further that the ultimate
parties in interest, insofar as Gray’s
mortgage was concerned, were Best’s
heirs. Could the administrator have
successfully resisted Gray’s foreclos­
ure action in such circumstances?

No. Even though the six year limi­
tation fixed by statute had run, the
mortgage subsisted as a valid lien as
against the mortgagor, his heirs and
legatees, and it was therefore binding
upon the administrator of the mort­
gagor’s estate. Such rule has been es­
tablished law in South Dakota for a
considerable period of time.

Q.

Pereau, a policeman in an Iowa
city, retired on a half-pay pension.
Thereafter he returned to active servN o rth w e ste rn

B a n k e r, N o v em b er,


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

1946

This and Other Timely Legal
Questions Are Answered
by the
LEGAL DEPARTMENT
ice for approximately two years be­
cause of the national emergency and
received a policeman’s salary during
that period. Was he entitled to the
payment of his pension also during
that time? One of the local bankers
was involved because he was mayor
of the city.

Yes. The Iowa Supreme Court held
recently that a policeman who, after
retiring on a half-pay pension, returns
to active service for a time by reason
of an emergency, and who receives a
policeman’s salary during such period,
does not thereby lose his vested right
to payment of the pension during
such period. Somewhat similar hold­
ings may be found in Minnesota and
Nebraska. There are contra holdings
in Illinois.

Q

. A trust officer of a bank was con­
fronted with a situation where one of
his friends died and the will of the de­
cedent could not be found. The facts
were that a will had been in existence
and in the testator’s possession but for
some unknown reason it had been lost
and could not be made available.
Probate proceedings were undertaken
to establish it as a lost will. In order
to do so was it necessary to overcome
a presumption that the will had been
destroyed by the maker?

Yes, according to the general rule on
matters of this kind. This rule, which
finds support in decisions in Alabama,
Nebraska, and other states, is that,
where a will was last seen in the pos­
session of the testator and was sub­
sequently lost, it is presumed to have
been destroyed by him.

Q.

Suppose that, in the preceding
question, the will, instead of having
been seen last in the possession of the

maker, was traced last to the posses­
sion of another. In such circumstances
would the proponents of the lost will,
as a general rule, have to overcome a
presumption that the testator had de­
stroyed it?

No. Where a lost will is traced last
to the possession of another there is
no presumption at law that the instru­
ment was destroyed by the testator.
It has been so held specifically in
Texas and Missouri. In such cases
there is, nevertheless, a burden on
the proponents to show that the will
was not revoked.

Q.

Brown, a duly licensed and act­
ing agent for a lire insurance com­
pany, agreed verbally with Willett, a
North Dakota banker, that his com­
pany would insure certain personal
property owned by Willett in that
state for $1,000, the insurance to be­
come effective from the time of their
conversation. The insurance company
was incorporated in, and had its home
office in, another state. Brown was
paid fees by it for business placed by
him. Before the policy could be issued
in the home office and returned to
North Dakota Willett suffered a loss
by fire of the property. Could Willett
recover even though he had no policy?

Yes. The fact that the agreement
between Willett and Brown was verbal
does not prevent a recovery by Willett
as Brown’s action in making the verbal
contract bound his company. The
North Dakota Supreme Court so held
in a recent analogous decision, point­
ing out that such an agent has au­
thority to make a preliminary verbal
contract of insurance pending the is­
suance of a written policy.

Q.

Dopf, a Minnesota banker, also
operated a construction business in
that state. He entered into a contract
to erect a building which, among var­
ious things, bound him to pay all ma­
terial bills. In carrying it out he hired
a carpenter as a subcontractor to do

(Turn to page 45, please)

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

A P artial List o f
Bankers Trust Services to Banks
Bond Portfolio Analysis
Collection of Notes, Drafts, Coupons, Ma­
tured Bonds and Other Items (Domestic
and Foreign)
Collection of Par and Non-Par Checks
Commercial and Travelers Letters of Credit
Commercial Paper Purchases
Consultation on Pension and Profit-Sharing
Plans
Co-Paying or Exchange Agent, Co-Transfer
Agent or Registrar, and Co-Depositary
Credit Information
Dealers in United States Government, State
and Municipal Securities
International Trade and Foreign Banking
Facilities
Investment Information
Participation with Correspondent Banks in
Loans to Local Enterprises
Receipt and Delivery o f Securities
Safekeeping o f Securities
Servicing Loans to Brokers and Dealers
Transfer o f Funds, Remittances and D o­
mestic Money Orders
Trust and Reserve Accounts
These and other specialized services are used daily by our correspondent banks.
You are invited to discuss any problem in which you fe e l we can be of assistance.

Ba n k e r s T r u s t C o m p a n y
N E W

MEMBER

EED ERA L

DEPOSIT

Y O R K

INSURANCE

CORPORATION

N orthw estern

Banke r, N o v e m b e r ,

1946

24

M a n u a l far Hanks
H AM M ER MILL
*
COLUMN

*

The boom in new small businesses and
stores has brought a new danger to banks.
The so-called “ proposition” gentry are
going quietly into action in various parts
of the country.

★

★

HE first envelope manual for banks
ever devised has just been released
by the Tension Envelope Corporation
as part of a specialized service to fi­
nancial institutions.
With complete illustrations, descrip­

T

Banks, insurance companies, securi­
ties dealers, and other financial insti­
tutions desiring copies of the manual
“ Envelopes for Financial Institutions”
may obtain them by writing Tension
Envelope Corporation, 1912 Grand Ave­

★

They are a clever ring o f forgers who plan
each job with experienced skill, shoot for
high stakes and stay far in the background.
The forged checks are passed directly in the
bank servicing the account.

H ere’s how they work, A member o f
the gang ferrets out a shady store owner
with larceny in his heart. W ith the hundredsof new stores opening up thesedays,
finding such a merchant is not difficult.
Once found, he acts as a front for the gang.
★

★

★

Members o f the proposition mob secure
signatures o f a large depositor in the same
bank used by the crooked storekeeper. A
clever penman studies the signature and then
im itates it so well that it will pass any cur­
sory inspection.

*

*

A forged check o f from $2,000 to $5,000
is given to the storekeeper. H e deposits
it to his account. Since it appears to be
a routine transaction, the teller accepts
the check. A few days later the store­
keeper draws out the cash, turns it over
to the gang, and receives his cut.

★

★

★

Once they've shown him how easy it is, the
gang has him repeat the routine three or four
times in a month, withdrawing as much as
$15,000 to $25,000. The mob specializes in
jewelry, furs — luxury line shopkeepers with
whom large transactions are not Unusual.

When the storekeeper is questioned he
is well prepared. H e presents.phony bills
o f sale which show th at he did not turn
over the merchandise until the checks
had cleared — thus passing the onus to
the bank. A ctually he never turned over
any merchandise a t all.
★

★

★

There
is no simple way to detect these
expert forgeries. A good plan is to check the
background o f any new store account.

★

*

★

A n o ther good plan is to give your custom­
e rs’ checks th e protection afforded by Hammermili S a fe ty . A note on your b a n k le tte r ­
head will bring sam ples of this fine check
p a p e r. A d d ress Hammermill P a p e r Com pany,
1513 East La k e Road, Erie, P en n sy lva n ia .
N orth w estern

Banker,


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

N ovem ber,

1946

ILLU STRATION S FROM THE EN VELOPE M A N U A L for banks are
shown in the picture above. Just released by the Tension Envelope Cor­
poration, it is the first manual o f its kind ever published.

tions and use recommendations for en­
velopes which have proven most valu­
able to the banking world, the colorful
pages graphically illustrate how each
envelope best serves the various needs
of banks, insurance companies, securi­
ties dealers and other financial institu­
tions, and points out many special ap­
plications.
From correspondence e n v e l o p e s
through specially designed envelopes,
such as the Deposit-by-Mail Envelopes,
each illustration is accompanied by a
comprehensive discussion of the serv­
ices the envelope can perform within
a financial business house.
Particular emphasis is placed on
methods of obtaining the greatest
value from the envelope. A staff of
creative artists is offered to aid in the
design of envelope advertising space
and corner cards—and specially trained
representatives of the company are
available to, discuss particular prob­
lems.
Attached to the inside back cover of
the book is a pocket placed there to
keep possessors of the manual up to
date. From time to time, samples of
new envelopes, data on postal regula­
tions, price lists, short-cut ideas, and
other valuable information will be sent
to supplement the reference material
already contained.

nue, Des Moines 14, Iowa, or by con­
tacting the nearest Tension represent­
ative.

DEAR EDITOR
(Continued from page 9)
which is the natural progress o f the disease,
but am comfortable, have but little pain,
go to the table for my meals and sit up
considerably.
“ Each o f the issues o f the N orthwestern
B anker you sent me are certainly hum­
dingers, especially the September issue. I
wonder i f your Dad and I will talk over
your accomplishments when we get together.
“ Thank you a million, dear old friend,
and every good wish to you and your family.”
Leo E. Stevens, 840 Locust,
Pasadena, California

"A. J. Bird Is Our Cashier"
“ We have your letter addressed to Leland
G. Hix, Cashier. At the time Mr. Hix re­
turned from the service we wrote you a letter
stating he had returned to this bank as
assistant cashier, then when your bank di­
rectory was published you still persisted in
listing Mr. Hix as our cashier and omitting
the name of A. J. Bird who is our cashier.
Would you therefore kindly correct your
records to read that A. J. Bird is our cashier
and that Leland G. Hix is our assistant
cashier?’ ’
Paul Groszkruger, President,
The Citizens State Bank,
Belle Plaine, Iowa.

25

Th is s m o o th n e s s
m o k e s s u re th<

Hammermill Sa
is e a s y to w r it e

FRO M C H IP S TO
PU LP TO PA PER
HAMMERMILL CONTROLS
EV ER Y STEP IN
P R O D U C IN G

H a m m e rm ill S afe ty is m a d e com p lete in on e mill. E v e ry ch a ra c te ristic that c o n ­

SAFETY


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

tributes to a fin e ch e ck p a p e r is tested b y H a m m e r m ill’s o w n t e c h n ic ia n s in one
of the m ost m od ern testing a n d control la b o ra to rie s in the p a p e rm a k in g

craft.

Th at is w h y it is the u niform check p a p e r — uniform in sm oo th w ritin g su rfa c e ,
p ro te ctiv e q u a litie s, co lo r a n d strength. A note on you r b an k le tte rh ea d w ill
bring s a m p le s . A d d re ss H a m m e rm ill P ap er C o ,, 1513 E ast la k e R o a d , Erie, P a .

N orth w estern

Banker,

N ovem ber,

1946

26

To Aviation Council
Marvin E. Holderness, who will re­
tire January 1, 1947, as vice president
of the First National Bank in St. Louis,
became associated with The Avia­
tion Council of Metropolitan St. Louis,

Inc., as executive manager last month,
according to a joint announcement
made by Walter W. Smith, president
of the First National Bank, and George
B. Logan, president of the Aviation
Council.
Mr. Smith stated that the bank is

contributing the services of Mr. Hol­
derness for his unexpired term as
“evidence of the bank’s interest in de­
veloping aviation as a great industry
in the St. Louis area,” and of the bank’s

F OR C O R R ESP O N D EN T BA N KS

A complete service
in Government and
Municipal Bonds
THE N O R T H E R N
TRUST COMPANY

M A R V IN E. H OLDERN ESS
Associated with Aviation Council

“desire to see the St. Louis area take
its rightful place as the air center of
America.”
Mr. Holderness, who is treasurer and
chairman of the finance committee of
the Municipal Opera Association, has
a long record of aviation interests, in­
cluding service on the Airport Com­
mission appointed by the late Mayor
Henry W. Kiel for the construction of
Lambert-St. Louis Airport.
Mr. Holderness has been elected an
honorary life member of the Financial
Advertisers Association, of which he
was a founder.

J. S. Coleman N ew President
50 S O U T H LA S A L L E S T R E E T , C H IC A G O 90, I L L IN O IS
M em b er F ed eral D e p o s it I n s u r a n c e C orp ora tion

Telephone Franklin 7070

Bell System Teletype—CG 368

John S. Coleman has been named
president of the Burroughs Adding
Machine Company, Detroit, succeeding
Alfred J. Doughty who resigned as
president and a director on the advice
of his physician. The change was ef­
fective last month.
In addition to the resignation of Mr.
Doughty and the appointment of Mr.

D id you k?iow there’s a gap in vour Cash Letter protection
that you could “ drive a truck through?” A sk us how to bridge it *
without costing you a cent.

Scarborough &> Company
Insurance Counselors
N orth w estern

Banker,


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Federal Reserve Bank of St. Louis

N ovem ber,

1946

to Banks

FIR ST N AT IO N AL BAN K B LD G . • CH ICAG O 3 , IL L . • STA TE 4 3 2 5

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

C

o n t in e n t a l

N
and

a t io n a l

T r u st C

I l l in o is
B ank
ompany

OF C H IC A G O

Statement of Condition, September 30, 1946

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

533,034,982.86

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

1,342,454,085.80

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

43,042,690.94

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

379,644,125.69

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

3,600,000.00

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

921,425.12

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

5,480,822.23

Banking H o u se .......................................................................................

10,575,000.00
$2,318,753,132.64

L IA B IL IT IE S
Deposits....................................................................................................... $2,134,474,310.27
Acceptances.............................................................................................
Reserve for Taxes, Interest,

921,425.12

andE xpen ses..............................

12,937,107.08

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

18,108,299.75

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

255,101.23

Capital S to c k ..........................................................................................

60,000,000.00

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

60,000,000.00

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

32,056,889.19
$2,318,753,132.64

United States Government obligations and other securities carried at
$282,229,233.18 are pledged to secure public and trust deposits and for
other purposes as required or permitted by law

Member Federal Deposit Insurance Corporation

N orth w estern

Banker,

N ovem ber,

1946

28

How a Banker became a Magician
a n d turned a predicament into an opportunity!

Coleman, Burroughs also announced a
number of other executive changes
from within its own ranks.
These changes involved promotion
of:
Laurence V. Britt, former executive
vice president, to chairman of the

A True Story of how a midwestern banker, by recommend­
ing Lawrence Field Warehousing, turned an automotive
parts manufacturer’s predicament into an opportunity.
( Reading time 49 seconds )

TP HIS is the story of an automotive parts manufacturer who obtained
a year’s contract for drop forge units from his principal customer.
Simultaneously he was offered a “ special buy” on all the steel bars
and rods he would need to fill the entire order.
Here was an opportunity for extra profits, but it had a string tied to it!
The manufacturer had to take delivery of the bars and rods on a
sight draft basis. And he had no cash. And his open line of credit was
not enough to handle the deal.
W hat had been an opportunity now remained a pre­
dicament until our banker worked magic by introducing
the manufacturer to Lawrence Warehouse Company.

The banker knew that the bars and rods could be field warehoused
under Lawrence System economically and without disrupting the
manufacturer’s production schedule. To the banker the workings of
Lawrence System was a familiar story. Lawrence Field Warehouse
Receipts were issued on the bars and rods. These Receipts were ac­
cepted by the banker as collateral, and with the receipts as security
he was able to lend the manufacturer the additional money needed.
In the same manner, for thousands of business men, American
Bankers have worked magic with Lawrence Field Warehouse Receipts
for more than 33 years.

President,

JOHN S. COLEM AN
Burroughs Adding Machine

Co.

board of directors and chairman of a
newly-formed executive committee.
John L. Stewart, formerly vice presi­
dent and treasurer, to the position of
executive vice president. Mr. Stewart
now combines the duties of executive
vice president and treasurer.
Thomas G. Long, Burroughs legal
counsel for the past 30 years, to the
board of directors, filling the vacancy
there caused by Mr. Doughty’s retire­
ment.
Raymond G. Bower, director and
general factory manager, to vice presi­
dent, engineering.
Ray R. Eppert, sales manager, to vice
president, marketing.
Sheldon F. Hall, former special rep­
resentative in Washington, to assist­
ant secretary and assistant treasurer.

Bank of Manhattan Director

N A TIO N W ID E

FIELD

DIVISION

W A R E H O U S I N G

OFFICES:

SAN FRAN CISCO II, C A LIF.
37 Drumm Street

C H IC A G O 2, ILL.
I N. LaSalle Street

Denver 2, Colo.
First Nat. Bank Bldg.

St. Louis 2, Mo.
Boatmen's Bank Bldg.

NEW YORK 5, N .Y.
72 Wall Street
Kansas City 7, Mo.
933 Mulberry Street

Also: Los Angeles • Boston • Philadelphia • Buffalo • Cleveland • Richmond • Charlotte
Atlanta • Chattanooga • Jacksonville • Orlando • Cincinnati • New Orleans • Houston
Dallas
• Seattle
•
Portland, Oregon
• Stockton
• Fresno
• Washington, D .C .

N orth w estern

Banker, N ovem ber,


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

1946

Frederick Sheffield, a member of the
law firm of Webster & Garside, has
been elected a member of the board of
directors of the Bank of Manhattan
Company. He is a member of the
Association of the Bar of the City of
New York and the American Bar Asso­
ciation. He is a director of F. A. O.
Schwarz, a trustee of the Trudeau Sanitorium, of the New York School of
Social Work and the Community Serv­
ice Society and a member of the board
of managers of St, Luke’s Hospital.

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

29

Continuously —for
Half a Century
31 5 banking institutions have been Central
Hanover correspondents continuously for
half a century. Central Hanover is one
ol New York's oldest commercial banks.

CENTRAL HANOVER
BANK AND TRUST COMPANY
NEW YORK
Member Federal Deposit Insurance Corporation

N orthw estern

Banker,

N ovem ber,

1946

30

H offal litt tili o f I 'añado P ro m o tio n s
A. F. Mayne and C. B. Neapole have
been promoted to the rank of general

visor of the bank’s foreign branches
since July, 1945. Mr. Neapole has been

C. B. NEAPO LE
Promoted by Royal Bank of Canada

inspectors of The Royal Bank of Can­
ada, according to announcement by
the bank. Mr. Mayne has been super-

\\

A considerable amount o f technolog­
ical development is the result o f trying
to make things EASIER for the work­
man. In the old days we used to try to
find ways and means o f doing things
faster. W e still do, o f course, but in
so many instances if we focus on how
to do them EASIER , we find the
solution to doing them faster.
Take sorting and filing checks, for
example. A ll checks are sorted and
filed correctly in banks, but is the

Banker,


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

N ovem ber,

1946

first assistant manager of Montreal
branch for the past six years.

EASIER

In all lik elih o od the man w ho
operated the linotype to set the type
for this advertisement made no errors
at all because after the matrices
dropped down into position before
actually entering the machine he was
able to verify each line. This double
check is made easy for him by die
stamping the letter on the side o f each
matrix, but it could be made EASIER
for him if the side o f the matrix was
blackened and the letter itself treated
with w hite or a bright colored
pigment.

N orth w estern

A. F. M A Y N E
N am ed a General Inspector

work easy enough? Can it be done
EASIER? I f bank people could sort
by printed names instead o f written
names, couldn’t they do the work
EASIER, hence faster and with greater
accuracy? Obviously they could, and
how much is it worth? And how can
you get printed names on checks?
T h a t’ s where we com e into the
picture. A ll you have to do is to place
one o f our small folders describing
Personalized Checks in each monthly
statement and give your customers an
opportunity to order them. Y ou will
get enough response to convince your­
self that people like them and your
operating people will be impressed
with their value in sorting and filing.
Then we keep right on supplying you
with new folders and you keep right
on placing them in your depositors’
statements. The first thing you know
a lot o f your customers will be using
imprinted checks and your sorting
and filing will be faster, more accurate
. . . and EASIER.

31

HI i *

i

:V: :

FOR FINANCIAL INSTITUTIONS

C
^¿OPES

v-^PLs

fNVEV0’

Here is the book that every bank and insurance
company should have.

Compiled and edited as

part o f a specialized service, it is a handbook o f
EN VELO PES

that have proved valuable to the bank­

ing world and are in daily use by important financial
organizations everywhere.
The colorful illustrated pages accent the vital
features o f each envelope, and all information per­
tinent to the envelope and its uses is readily avail­
able to the reader.

ON

REQUEST!

W rite for your copy today.
Keep it handy and consult it

Tension’s B O O K FO R F IN A N C IA L IN S T IT U T IO N S
is the result o f 6 0 years experience in serving banks

whenever you have occasion
to order envelopes from us, or

and insurance companies with envelopes designed

desire information concern­

to meet their particular requirements. It is a library

ing a special type of envelope

o f envelope reference.

for which you may have use.

T ftoM ufrictun& ià S e ttin g 'D t'ie c t t *

tà e 'Ztâ&i

TENSION ENVELOPE CORP.
NEW YORK 14, N. Y.
345 Hudson St.

^MINNEAPOLIS 1, MINN.
129 N. 2nd St.

*ST. LOUIS 3, MO.
23rd & Locust Sts.

*DES MOINES 14, IOWA
1912 Grand Ave.

‘ KANSAS CITY 8, MO.
19th & Campbell Sts.
'O rig in a lly B erk o w itz E n v e lo p e C o .


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Federal Reserve Bank of St. Louis

N orthw estern

Banke r, N o v e m b e r ,

1946

32

IN M A C H I N E S
IN

COUNSEL

IN S E R V I C E

There is a good reason why so many timesaving, laborsaving features appear first . . . or exclusively . . . on
Burroughs products. Burroughs specialists, working daily
with men in every line of business, acquire an insight
into future figuring and accounting needs. They plan
machines to meet these needs efficiently and economically
— making full use of the latest scientific equipment in
Burroughs' physical, chemical and electronic laboratories
. . . the advanced ideas of experts in machine design
and styling . . . and long experience in building for a wide
range of office requirements.
Forward thinking and planning— made effective by the
finest in research and manufacturing facilities— explain
why you see Burroughs machines wherever you go.
B U R R O U G H S A D D IN G M A C H IN E C O M P A N Y • D ETR O IT 3 2 , M IC H IG A N

FIGURING, ACCOUNTING, STATISTICAL AND CASH REGISTERING MACHINES
N orthw estern

Banker, N ovem ber,


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

1946

• NATIONWIDE MAINTENANCE SERVICE • MACHINE SUPPLIES

33

INVESTMENTS

C om m ercia l H anks
W a tch

the

M u n ic ip a l M a r k e t

A Review of Municipals, Corporates and
Governments With Probable Coming Trends
By RAYMOND TRIGGER
Investment Analyst
New York City

URING the war municipal financ­
ing fell close to 400 millions in
one year and less than a billion
dollars of bonds have been marketed
thus far in 1946. The great bulk of
the business was for refunding out­
standing issues and to raise the money
with which to pay maturing obliga­
tions. Additionally, there was a steady
stream of maturities which were met
without recourse to borrowing. As a
consequence, the total of outstanding
municipals fell from 19.2 billions in
1941 to around 16.2 billions by mid1945.
Because of tax features, municipals
have unusual appeal to certain types
of investors who are pretty steadily in
the market. Commercial banks gen­
erally do not find it profitable to hold
large amounts of municipals, but the
mid-1946 total of close to four billions
owned by them is not unimpressive
and was around 20 per cent of the
total then available to all investors.
The general condition of the coun­
try’s commercial banks and the trend
of earnings suggests that a growing
number of these institutions may find
it expedient to keep a modest propor­
tion of total assets in these obligations.
Because of the flood of municipals
likely to come to market over the next
two or three years, however, it is un­
likely that the proportion of the total
supply held by banks will increase,
although there may well be a rise in
the dollar amount of these investments
held by banks.
From the point of view of the po­
tential commercial bank buyer of mu­
nicipals the outlook is more than agree­
able. The commercial bank which
contemplates gradual acquisition of
some municipal bonds will stress yield
and quality. Prices have dropped
about 10 per cent this year from the
all-time peaks of last April. A typical,

D


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

This is a discussion of factors
affecting your investment port­
folio. if you have any questions,
or if you find yourself in dis­
agreement with comments here­
in. your letters, addressed to the
NORTHWESTERN BANKER, will
be welcome and will be answered
here if the subject matter is of
general interest. Under no cir­
cumstances will the editor of this
column discuss specific securities.

but it is considerably better than the
meager returns available early in 1946.
The price, of course, reflects to a ma­
jor degree the tax-exempt status. The
prospect that taxes generally will be
so much reduced as to significantly les­
sen the appeal of exemption is remote.
The long battle waged by federal au­
thorities to upset the right of states
and political subdivisions thereof to
exempt their obligations from taxation
appears finally lost and probably has
been definitely shelved. Prices, then,
will likely respond mainly to supply
and demand factors in the future.

fair-to-medium grade bond due in 20
years currently will yield 1.75 per cent,
entirely free of tax, to maturity.
This is not generous, by any means,

The price decline in 1946 probably
reflected te m p o r a r y developments.
Practically all professionals were fully
aware that there would be a postwar
flood of new municipals; at first, main­
ly for veterans and thereafter for long-

N orth w estern

Banker, N ovem ber,

1946

34

investments

J a m ie s o n

&
C o m pan y
Members

New York Stock Exchange
and Other Principal Exchanges

★

STOCKS
BONDS
COMMODITIES
★
MINNEAPOLIS
FARGO
ST. PAUL
GRAND FORKS
DULUTH
SIOUX FALLS
EAU CLAIRE
Private Wire to All Principal Markets

( Here’sYour Daily
: FINANCIAL NEWS
|
1
'
|
...

fo m

p fa t e

|

T h e Journal of Commerce
gives you each day— and ar-1|
ranged for fast and easy reading — the follow ing impor­
tant financial news features
1.

Complete New York Stock
Exchange stock and bond ¡ |
quotations.
f|

2-

Complete New York Curb | |
quotations.

deferred public works and extensions
and repairs to existing facilities. Ac­
cordingly, professional buyers and sell­
ers looked forward to a decline such
as actually occurred. Another factor
was the performance of governments,
for the yields from governments, even
though only partially tax-exempt or
fully taxable, have a direct bearing on
the price a tax-conscious investor will
pay for exemption.
The government bond market may
well fluctuate within quite narrow
ranges for a long time to come, but
the fundamentals in the situation point
ultimately to somewhat higher returns
and, consequently, a slow, extremely
long-term drift toward lower prices.
Thus, with a greatly enlarged supply
of municipals ahead and some slow
pressure on prices from the trend of
governments, the buyer of municipals
should have the advantage for at least
several years.
The great flood of municipals in pros­
pect also means that the buyer will
have a wide variety of credits from
which to make his selection. Accord­
ingly, he likely will not have to do a
great deal of searching and seeking to
find just what best fits the needs of
any particular portfolio. All that he
will have to do is sit back and wait
for the opportunity to specify just how
many of just what maturity will suit
him. On the score of price, too, it is
only logical to expect that the under­
writing syndicates will no longer bid
prices that include a premium, meas­
ured against outstanding issues, be­
cause some merchandise is better than
none; but that they will strive to ac­
quire new issues at discounts from the

3 - The most complete Unlisted |
Securities quotations any- |§
w h e re pu blish ed — o v e r
||
1500 each day.

m 4 - Utility News Summary.
5-

Public Utility

Railroad News Summary.

Industrial

ft;.:; 6 - Industrial News Summary.
7 - Stock Market Trends
|!§

Railroad

plus feature articles and com-

j
plete coverage of all financial §
III news o f the day.
•%

M unicipal

The next 78 issues will be
sent for $5. I f y o u a re an
in v e s t o r — you n e e d this news
each day. Send your check n o w .

Journal oi lommnte
I| §

The Corporate Bond Market
After having given some signs of
indigestion in July, the market in new
corporate bonds had a period of rest
and readjustment in August and Sep­
tember. Since then it has given mild
indications that it is about ready to
recover insofar as volume is concerned
and that it will not undergo any pro­
nounced decline for some time to come.
The character of the prospective mar­
ket in new corporates, however, may
be quite different than in 1945 and in
the first quarter of 1946.
During 1945, the great bulk of the
business was in refunding operations.
There were two major incentives; high
prices and worthwhile excess profits
tax savings. Prices, to be sure, rose
a little more in the first quarter of
1946, but the special inducement stem­
ming from excess profits tax savings
disappeared at the close of 1945. Thus,
the volume of refundings in the first
quarter of 1946 receded from the rec­
ord peaks attained in the second half
of last year.
As prices eased in the second quar­
ter of this year, the opportunity to
refund profitably was correspondingly
restricted, while at the same time new
money demands became more insist­
ent. Ordinarily, new money operations

INVESTMENT
SECURITIES

!'

'

prevailing prices of older issues be­
cause the new bonds will not be “sea­
soned” marketwise and because they
will have to be “merchandised,” rather
than rationed to pet accounts.
In sum, the time may be approach­
ing when commercial bankers will
again find it profitable and practical
to keep in fairly close touch with the
municipal markets.

NEW YORK
53 Park Row, New York 15, N . Y.


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

A-GALLYNandCOMPANY
Incorporated
100 Went Monroe Street, Chicago
N ew

Y o rk
O m aha

M ilw a u k e e
W aterlo o

B oston
K a n sa s

C ity

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

II_________________________________________________

investments
are undertaken for a variety of rea­
sons, and the cost of money is by no
means the major factor in the decision
to go ahead. New money flotations did
expand notably in the June quarter of
this year. The $330,000,000 total was
the largest for a single quarter since
1931. The volume likewise was 40 per
cent of all corporate financing in the
three months, whereas it was only
5 per cent of the year earlier total.
All signs point to a strong resur­
gence of new money financing from
here on. No doubt a good many cor­
porations would like to get needed
funds through the sale of equities, but
the general stock market outlook is
hardly propitious. There are excep­
tions, of course, of which Bell Tele­
phone of Canada is an outstanding
recent example, but the great major­
ity probably will be obliged to borrow.
There may be some temporary financ­
ing by way of bank loans, but the bulk
of the business ahead likely will be
done in bonds.
The volume of financing by the rail­
roads is not expected to be nearly as
large as was predicted earlier this year.
The market action of rail bonds seems
to have taken care of that. There are
a handful of top-credit candidates that
may carry out their plans to refinance,
but other sections of industry must be
counted on for the greater part of new
money omissions likely to be seen for
manjr months. A minor exception is
railroad equipment financing. Here
the need is marked and financing will
be limited only by the ability of sup­
pliers to turn out the rolling stock. On
the other hand, many rail equipment
issues will be quite small and many
other operations will be financed

through one or a few large financial
institutions.
Public utilities and many important
segments of general industry will come
into the market for new money as it
becomes possible to buy plant and
equipment. Additional funds are also
needed to carry expanding inventories
at rising prices and to finance growing
receivables.
The corporate bond market may un­
dergo some further internal correction
as prices of lower grade obligations
are brought into line with yields now
obtainable from the best quality is­
sues, but the period of instability for

35

top-flight bonds appears to have ended.
Indeed, in recent weeks, offerings of
(Turn to page 38, please)
REPRESENTATIVE MUNICIPAL LISTINGS
Compiled by The Northern Trust Company, Chicago
(as of October 22, 1946)
1- 1-67 2.70
Montgomery, Alabama ............ .4
4- 1-66 2.10
Arkansas Highway ................. .3 V,
8- 1-65 1.65
Los Angeles, California............ •IVo
New Orleans, Louisiana.......... .4% 12-:15-78 1.90
10- 1-64 1.35
Baltimore. Maryland ............... .4
Boston, Massachusetts ............ .IV,
8- 1-66 1.45
6- 1-62 1.85
Detroit, Michigan ................... .2 V,
St. Paul, Minnesota................. .iy 2 10- 1-66 1.45
11- 1-65 1.70
Kansas City, Missouri.............. .4
Newark, New Jersey............... .4«/, 10- 1-66 1.90
New York S ta te.. ............... . . . •IVo 12- 4-66 1.20
9- 1-68 1.60
Cleveland, Ohio ....................... IVo
7- 1-66 1.75
Oklahoma County, Oklahoma. .1%
Salem, Oregon ......................... .4
7- 1-73 1.60
Clintonville, Wi-consin, S /D . . IV2 4- 15-63 1.45
9-1-63/56 1.90
Rawlins, Wyoming ................. .2

Practical Assistance
to In stitu tio n s in
the Solving of Their
Investment Problems

|
|
I

T o d a y ’s changing markets call fo r all available

|

aid in the solvin g o f the m any investm ent prob-

§

lems which constantly con fron t banks, insurance
companies and other large institutional inves-

|

tors. T h a t we are fitted to render a com prehen-

|

sive service has been proved by our m any years
o f successful experience in this field.

§

O u r staff m em bers are fam iliar w ith all types o f

|

securities and are glad to provide basic facts,

|

when needed, concerning current security mar­
kets. M o reover, through

THOMSON &
McK in n o n

our

|

92 strategically located offices— interconnected
by direct wires— w e are able to obtain

STOCKS * BONDS
COMMODITIES

these

|

investm ent facts prom ptly.

|

Should you require such a practical and compre-

|

bensive service, we would be happy to discuss
your problems with you in person on a confi­

216-218 Empire Bldg.
D E S

the facilities o f

M O IN E S

dential basis.

|

Phone 4-2127
11 W all Street, New York
231 S. RaSalle St., Chicago
Branches in 34 Cities

W rite fo r our w eek ly S tock S u rvey
DIRECT PRIVATE W IR E

Laverne M, Barlow

M

e r r il l

L y n c h , P ie r c e , F e n n e r & B e a n e

Underwriters and Distributors of Investment Securities
Brokers in Securities and Commodities
70 PINE STREET

|
|

NEW YORK 5, N. Y.

M an ager

Members New York Stock Exchange
and other principal exchanges


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

O ffices in 91 C ities

|

iiiiMiiiiiiitiiiiiiiiiiHiiiiiiiiiuiiiiiiiiiniiiiiiiiiiiiiiiiiiitiiiiimiiituiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiMiimiiiitiiiiiiiiiriiiitiiuiiiiiiiiiittitiiiiiiiiiiiiiiiiiiiitiiiituitiiiiiiiT
N orthw estern

B anker, N ovem ber.

1946

36

To all of you who have represented Western Mutual through
the past year, we are grateful. You have given the members
of your community the best there is to be offered in the way
of Insurance Protection and with each additional client we
have been able to improve our service to all.
To those of you who are interested in obtaining for your clients
full insurance coverage in the fields of FIRE, WINDSTORM,
AUTOMOBILE and PLATE GLASS protection, we will appreci­
ate the opportunity of presenting our program.

W

E S T E R N
M U T U A L
F I R E I N S U R A N C E CO.

Mutual

N orthw estern

Ban ke r, N o v e m b e r ,


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

7946

Insurance

Is A m e r i c a n

Insurance

37

IN S U R A N C E

Hunk i 'radii Officer 3Lusi Puss on
A d equ a cy o f fu su ran ft* au Lau us
By JAMES R. HALE, Spedai Representative
The Hartford Fire Insurance Co.
New York City, New York

T

HE credit officer of a city bank
recently made this remark: “ Lo­

cal agents should see all of their
policyholders now and make certain
that their insurance is adequate.”
Why should a bank credit officer be
concerned about the adequacy of your
customers’ insurance? Is this just an­
other intrusion where a third party
may disturb your customer relation­
ship, or is it an added opportunity to
serve your policyholders? If we look
at the picture from the credit officer’s
viewpoint, we will be forced to admit
that he not only has a right but he is
duty-bound to pass on the adequacy
of insurance where credit is involved.
Nearly every loan agreement contains
some such clause as the following:
Maintain insurance in responsi­
ble companies in such amount and
against such risks as is customarily
carried by owners of a similar busi­
ness and property.
Maintain insurance against such
risks and such amounts as the
bank deems necessary.
Undersigned shall insure and
keep insured all real and personal
property for the full insurable
value thereof, against such risks
and in such companies as may be
satisfactory to the bank.

Term Loans
Regardless of the type of credit your
policyholder may use, and whether or
not property is pledged to secure the

When a credit officer reviews an
application for bank credit, he tries
to determine the type of loan which
will best serve the applicant. If long­
term credit is required, it may be to
the best interest of the borrower to
arrange a term loan. Such loans have
a final maturity exceeding one year.
Usually they run from one to ten
years and are repaid monthly, quar­
terly, semi-annually or annually. Gen­
erally, the plant facilities are pledged
as security for the loan.

J A M E S R. H A L E
“ Insurance is credit officers’ duty”

If you and your customer will ac­
cept the credit officer as a third party
entering your sailboat, you both may
find in the years ahead that he will
do his part to keep the boat afloat, and
to be of material assistance to you.

marine, casualty or surety—means the
bank may lose a depositor and you
may lose a customer, if he is not ade­
quately insured.

loan, the adequacy of his insurance
becomes a triple responsibility—his,
the bank’s and yours. Even if your
policyholder does not use bank credit,
he probably deposits his funds at some
bank or banks. A severe loss or claim
for which he is liable—whether fire,

The credit officer who approves a
term loan must analyze the particular
business involved, its place in the in­
dustry, capacity of management, past,
present and potential earnings, plant
layout and design, and possibility of
quick obsolescence. He must make
certain that the borrower’s plant will
remain intact, and that it can stay in
continuous operation. The credit offi­
cer will have done his job when he
passes on the credit; you will have
done your job when you have provided
coverage against such risks and in
such amounts as will protect both your
customer’s and the bank’s interest. An
insurance survey is often desirable.

Other Types of Loans
Credit surveys indicate that more
and more property owners will use
bank credit in the future. Each type
of loan presents its own hazards. For

In su ra n ce

D id you know that this company has specialized in
Bank Insurance since 1 9 1 9 — that it has the inside view on Bank
insurance problems? Consult us freely at any time.


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

FIRST

NATIONAL

HANK

BUILDING

C o u n s e l o r s to B a n k s

Scarborough
& Company
• CHICAGO

ILLINOIS

N orthw estern

Ban ker,

• STATE

4 3 2 5

Novem ber,

1946

38

Insurance

instance, the coverage you would pro­
vide to protect the borrower and the
bank’s interest under a loan secured
by field warehouse receipts would dif­
fer from the coverage you would write
under a loan secured by accounts re­
ceivable. Production equipment loans,
agricultural loans for modernization,
for new farm machinery, to build new
tenant houses, to buy livestock, etc.,
personal loans, consumer credit, arid
automobile loans will be made by many
banks. Almost any type of legitimate
credit your policyholders may require
is now available.

Loans Now Outstanding
The credit officer needs your assist­
ance now to check the adequacy of
the borrowers’ insurance on outstand­
ing loans. Especially is this true on
term loans. Repayments may reduce
the bank’s interest in your customers’
property, real and personal, but if he
is underinsured, or if all risks are not
checked, you may be the third man in
the boat who failed to do his share. # #

(Editor’s note: This story is
reprinted from the HARTFORD
AGENT, with the special permis­
sion of the Hartford Fire Insur­
ance Company, Hartford, Conn.)

American Express Office
New sales and operating offices of
the American Express Field Ware­
housing Corporation were opened last
month in the Lawyers Trust Building
at 111 Broadway, New York, U. T.
Thompson, vice president, has an­
nounced. Administrative offices of the
corporation will remain at American
Express headquarters, 65 Broadway.

Travels Two More States
Frank Fuchs, assistant vice presi­
dent, First National Bank, St. Louis,
will now travel in Kansas, Iowa, Colo­
rado and Nebraska. He formerly trav­
eled in Missouri, in addition to Kansas
and Iowa.

INVESTMENTS

Over $ 7 9 ,9 0 0 ,0 0 0 .0 0 Paid
P o H c y h o fd e r s

and

S in c e

B e n e fic ia r ie s

1887

Bankers Life of N ebraska is proud to have
a part in an undertaking which h as a s its
objective

the protection

and

financial

(Continued from page 35)
strictly high grade bonds have been
extremely well received, although it
was necessary to price bonds realisti­
cally; that is, a few basis points under
the yields obtaining from comparable
but well seasoned issues.
The institutional buyer, then, will
proceed with caution. For the pres­
ent the best grade obligations coming
on the market are also the best buys.
Later on, when the needs of these bor­
rowers have been satisfied and the
market for somewhat lower grade obli­
gations gives a fully adequate corre­
spondingly greater yield, bonds in
these categories will have more appeal.

The Government Bond Market
Although the administration has con­
ferred with several groups of institu­
tional investors and listened to a lot

stability of the American home and family.

BankersWe

specialize

in

writing

automobile and fire insur­
ance.
Special bank service and
attractive p ro p o sitio n for
banker agents.

★

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
Mt. P l e a s a n t , Io w a
E. A. HAYES. President
O. T. WILSON, Secretary
Established 1929

N orthw estern

Ba n ke r. N o v e m b e r ,


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

1946

Insurance
of sound advice, there is little likeli­
hood of anything startling coming
from Washington before 1947. Should
there be a wholly unexpected sharp
rise in government bond prices, what­
ever program the Treasury is deliber­
ately crystallizing might be acceler­
ated, but otherwise major decisions
and important actions will he put over
until next year.
The campaign to revive the interest
of small investors in Victory bonds
will produce some colorful efforts and
may even turn the tide on “ E” bonds,
lately being redeemed in volume great­
er than new sales, but the usual preChristmas urge to spend likely will
make its appearance this year.

Debt reduction by the use of un­
needed war loan balances presumably
will end with the close of 1946 and
pressure on banks’ reserves will there­
by be eased. At the same time, there
is nothing to indicate that “cheap”
money advocates have lost much
ground lately, which means that prices
will have to he supported when nec­
essary.
Perhaps early next year the prospec­
tive sale of long-term 2%s to investors
other than commercial banks will be
launched. The proceeds, presumably,
will be largely devoted to retiring more
of the unwieldy burden of short-term
government debt. This may involve
some increase in the over-all cost of

39

servicing the federal debt, but if na­
tional income in 1947 comes anywhere
near the high levels predicted, no seri­
ous problem will be created.
The combination of the need to main­
tain prices in order that a long-term
loan can be successfully floated and
the prospect that such an operation
will add greatly to the total supply of
long governments suggests strongly
that the market will be “floored” and
“ceilinged,” respectively, and that fluc­
tuations will be limited in extent in
both directions. Altogether, the out­
look is for stability at levels obtaining
in recent weeks.

L o w C ost, N o n - A s s e s s a b le

FARM LIABILITY INSURANCE
f o r Y o u r F a r m e r C lie n ts
Allied Mutual pioneered this worry-free protection which
defends the farm owner in case cattle get into neighbor’s
corn, loose horse injures motorist on highway, hired man
is hurt by tractor—or any one of a hundred other common
farm hazards. Up to $250 medical, surgical, hospital pay­
ments for hired men or hired girls regardless ol respon­
sibility. Essential protection. Easy to interest farmer.
Investigate for your agency. \\ rite

ALLIED M U T U A L
CASUALTY COMPANY
Harold S. Evans, President
H ub be ll Building

Des Moines 7, Io w a

Resources of

OVER 2 ,9 0 0 ,0 0 0 DOLLARS
Experience of

OVER TWENTY-SEVEN YEARS
Now dedicated to the Surety
and Fidelity Bond needs of
the Middle W est.
<®> S u re ty

d iv is io n

The State Automobile insurance Association

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

DES

MOINES,

Longer life for people
past 40
At the left above is a normal, healthy
heart. Chances are, yours is like that.
The other is a heart enlarged far be­
yond normal by the prolonged impact
of high blood pressure. It is an example
of one type of “ heart disease” , and
heart disease as a whole is the greatest
killer of Americans today.
Yet, thanks to medical science, the
person whose heart is being affected by
high blood pressure has more reason
for optimism than ever before. By
means of timely examination, includ­
ing the use of electro-cardiogram and
X-ray, a physician can accurately de­
tect impairment of the heart muscle
resulting from high blood pressure or
other cause. Having diagnosed it, he
has at his disposal new medical sub­
stances and new techniques which are
proving highly successful in controlling
such heart disorders and in promising
more comfortable living for persons sc
affected.
All this is embraced by geriatrics—
the science of helping older people en­
joy life longer. The result: If you are
40 today, you may reasonably look to
another 40 years or more of pleasure
and accomplishment.
Just as important as good health to
the enjoyment of those years is finan­
cial solvency, based on a sound pro­
gram of savings and life insurance.
Your NWNL agent is paid not pri­
marily for the amount of insurance he
sells you but for the amount you keep in
force because it satisfies you.

NO RTH W E STERN y ^ Ô t t O T l C l l LIFE
COMPANY

INSURANCE

IOWA

neafous minnisota

Adapted from N w N L ’s Latest national advertisement

N orthw estern

Banke r,

November,

1946

STATEM ENT

OE C O N D I T I O N

First National Bank

Minneapolis

as at September 30, 1946

D IR E C T O R S

RESOURCES

Cash and Due from Banks

$ 86,929,887.79

United States Government Securities

.

189,420,410.40

Other Bonds and Securities
Loans and Discounts

.

13,203,688.99
.

.

.

70,790,155.28

Accrued Interest and Accounts Receivable
Customers’ Acceptance Liability

.

801,816.15
1,009,214.65

Bank and Office Buildings

825,414.90
$362,980,588.16

LIABILITIES

Capital S t o c k .........................................

$

6,000,0 00.00

S u r p l u s .................................................

10,000,000.00

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

4,089,584.00

Unallocated Reserves

1,204,898.83

.

.

.

.

Reserve for Interest, Expenses, Taxes, etc.

2,134,792.15

Acceptances and Letters of Credit.

1,009,214.65

Other L i a b i l i t i e s ................................
Deposits (Includes U. S. War Loan
Deposit of $.31,443,724.33) .

120,380.93
338,421,717.60
$362,980,588.16

Henry E. Atwood, President
Atherton Bean,
Executive Vice President,
International Milling Co.
Russell H. Bennett, Mining Engineer
Daniel F. Bull, President,
The Cream of Wheat Corp.
J. G. Byam, Vice President
John Cowles, President,
Minneapolis Star Journal and
Tribune Co.
Franklin M. Crosby, Vice President,
General Mills, Inc.
Donald D. Davis, President,
Minnesota and Ontario Paper Co.
Paul V. Eames, President,
Shevlin, Carpenter & Clarke Co.
John H. Hauschild, Chairman of
the Board, Chas. W. Sexton Co.
Horace M. Hill, President,
Janney, Semple, Hill & Co.
W. L. Huff,
Executive Vice President and Treas­
urer, Minneapolis-Honeywell
Regulator Co.
C. T. Jaffray, Chairman of the Board,
First Bank Stock Corporation
John H. MacMillan, Jr., President,
Cargill, Inc.
Sumner T. Me Knight, President,
S. T. McKnight Co.
Howard I. McMillan, President,
Osborne-McMillan Elevator Co.
W. G. Northup, President,
North Star Woolen Mill Co.
S. G. Palmer, President,
S. G. Palmer Co.
A. F. Pillsbury, Director,
Pillsbury Mills, Inc.
Robert W. Webb, Vice President
H. R. Weesner, Chairman of the
Board, The Wabash Screen Door Co.
F. B. Wells, President,
F. H. Peavey & Co.
C. J. Winton, Jr., President,
Winton Lumber Co.
Sheldon V. Wood, President and
General Manager, Minneapolis
Electric Steel Castings Co.
Edgar F. Zelle, President,
Jefferson Transportation Co.

United States Government obligations and other securities carried at $62,864,300.00 in the foregoing statement
are deposited to secure public funds andfor other purposes required by law.

M E M B E R F E D E R A L D E P O S IT IN S U R A N C E

A F F I L I A T E D

N orthw estern

Ban ke r, N o v e m b e r ,


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

1946

W I T H

F I R S T

B A N K

C O R P O R A T IO N

S T O C K

C O R P O R A T I O N

41

Legion of Merit Awarded

Miliiiosola

NEWS

A . W , SAN DS

W IL L IA M

P residen t
S t. Paul

Resigns at Taunton
Pernall Canton has resigned as as­
sistant cashier of the State Bank of
Taunton, Minnesota, to resume his
studies at the University of Minnesota.
Mr. Canton has a part time job with
the University National Bank of Min­
neapolis. Richard Kwiatkoski is the
new assistant cashier.

Winona A.I.B. Meeting
George Greenwood, Portland, Ore­
gon, national president of the Amer­
ican Institute of Business, w a s
principal speaker at the annual fall
banquet of the Winona chapter of the
A.I.B. held at the Winona Country
Club recently. There were 85 mem­
bers in attendance.
B.
J. Snyder, First National Bank,
announced the educational program
for the coming year and there will be
two classes. S. J. Kryzsko, 2nd vice
president and trust officer, Winona
National and Savings Bank, has a
class in consumer credit and the other
class is a study of negotiable instru­
ments.

Hit One Million Mark
Totals for the First State Bank of
Isanti, Minnesota, went over the mil­
lion dollar mark recently for the first
time in the bank’s history. In July,
1940, when Hilding A. Erickson took
over as president, total footings were
$185,000. Capital stock is $25,000 and
surplus and undivided profits are $26,483. Total deposits are just under the
$1,000,000 mark.
Other officers of the institution are
Henry A. Hansen, vice president;
Geneva L. Peterson, cashier, and
Gladys Peterson, assistant cashier.

Fifty-eighth Year
The Adrian State Bank of Adrian,
Minnesota, which was incorporated in
1889, began its 58th year of operation
on October 23rd. From the time of
its founding until 1906, the bank was
operated by the Mylius interests, then
it was taken over by Edwin Brickson,
president, and other stockholders. The
bank has a capital of $40,000; surplus
and undivided profits of $64,021, and
deposits of $1,355,613.
Other officers are H. H. Martens,

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Federal Reserve Bank of St. Louis

D U N C A N . J r.
S ecreta ry
M inneapolis

The U. S. Army’s Legion of Merit
Medal was presented last month to
Chester D. Seftenberg, vice president
and trust officer of the First and Amer­
ican National Bank of Duluth, at a
ceremony at Wright Field, Dayton,
Ohio.
Presentation of the award was made
by Lt. Gen. N. F. Twining, command­
ing the air materiel command, as-

vice president; H. G. Knips, cashier,
and W. E. Marston and Hilda Carlson,
assistant cashiers.

Cloquet Bank Joins Group
Announcement of the affiliation of
the First National Bank, Cloquet, Min­
nesota, with the First Bank Stock Cor­
poration group of banks was made
last month by A. H. Kennedy, presi­
dent of First Bank Stock Corporation.
The First National Bank of Cloquet
was organized in 1900 and on Septem­
ber 30th it had deposits totaling $6,831,000. Officers are Lynn S. Olson,
president; C. I. McNair, Jr., vice presi­
dent; AV. N. Campbell, cashier; A. J.
Anderson and C. K. Sunnarborg, as­
sistant cashiers.

Distinguished Service Award
S. M. Waters, president of M. R.
Waters & Sons, Minneapolis real es­
tate and mortgage loan firm, has been
given the 1946 distinguished service
award of the Mortgage Bankers As­
sociation of America. The award is
given annually for the most worth­
while service in the mortgage banking
field. This year the association gave
two awards, one to Mr. Waters and
the other to Miller B. Pennell of Cleve­
land. Mr. Waters is a past president
of the association and heads the Min­
neapolis firm founded by his father in
1883.

Open New Offices
The new banking offices of the Mur­
ray County State Bank of Slayton,
Minnesota, were opened officially last
month with an open house celebration
which was attended by bankers from
surrounding towns and several bank­
ing officials from Minneapolis, includ­
ing J. Cameron Thomson, president of
Northwest Bancorporation.
The bank’s quarters have been com­
pletely modernized, with excellent
lighting facilities, triple the old work­
ing space for employes, spacious lobby
and private offices where customers
may transact their business.
Officers of the bank are Robert P.
Howe, president; C. J. Leiser, cashier,
and Beverly Knutson, assistant cash­
ier.

CHESTER D. SE FTEN BERG
Receives Army’ s Legion of Merit

sisted by Maj. Gen. B. F. Chidlaw,
deputy commanding general.
The citation read at the ceremony
stated that Colonel Seftenberg’s “out­
standing performance” as the technical
executive of the AAF materiel com­
mand, and “brilliant accomplishments”
of projects vital to the success of the
war effort reflected “great credit upon
himself and the armed forces of the
United States.”
Mr. Seftenberg served 42 months in
the U. S. Air Corps. For a time he
was deputy chief of management con­
trol of the air technical service com­
mand on the staff of Lt. Gen. William
S. Knudsen. He was released from the
army December 27, 1945.

State Senator Nominee
Hans C. Pedersen, president, Farm­
ers & Merchants State Bank of Ruthton, Minnesota, has filed a petition
with 997 signatures to fill the sena­
torial vacancy on the nomination ticket
caused by the death of Senator J. Ah
Weber last month. More than 1,900
voters signed the petition for Mr.
Pedersen in the three counties of Mur­
ray, Lincoln and Pipestone, but since
the law places a maximum of 1,000
signatures on such petitions he had to
eliminate the extras.
Mr. Pedersen and Senator Weber
made political history in a postcard
N orthw estern

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November,

1946

42

Minnesota News

primary last summer when they con­
ducted an informal poll to decide who
should file for the office and Senator
Weber won by a few votes.

Regional Conference
A regional savings and mortgage
conference sponsored by the American
Bankers’ Association will be held in

SPECIAL OFFER
Accident Insurance, $5000 Principal Sum for
only $2.00 Paid Up in Full to the Middle of
next March.
MINNESOTA COMMERCIAL MEN'S ASSOCIATION
2550 Pillsbury Ave. So.

M inneapolis 4, Minnesota

Minneapolis December 9th and 10th.
Letters of invitation have gone out to
some 1,500 banks in Minnesota, North
and South Dakota and Wisconsin. The
first day will be devoted to savings
management problems and the second
day to mortgage problems.

With W aseca Bank
Donald Johnson, former cashier of
the Otisco State Bank and more re­
cently employed in the Bank of Elk
River, has accepted a position with
the Farmers National Bank of Waseca,
Minnesota, where he has been elected
assistant cashier.
He started his banking career in
1930 in New Richland where he was
employed by the First National Bank
and later in the State Bank.
In 1936 he worked for the Mar­
quette National Bank of Minneapolis
before accepting a position as cashier
of the Otisco State Bank. He was
there for seven years before entering
the Navy where he served during
World War II fdr two years.

Named Assistant Cashier
Reduce feed costs and increase livestock profits
—grind your own feeds. It saves time and money
and you have easily digestible feed for your live­
stock at all times.
Offered in both 10 and
inch sizes,
MM Hammermills give you high capacity
grinding of feed and roughage of all
kinds at low cost! For example, the new
1312 inch MM mill has a capacity of from
3,000 to 10,000 pounds of shelled corn
per hour. It takes but 15 H.P. to run, yet will
stand the gaff of 75 H.P. and grind a volume in
proportion to power used. Thus it is adaptable
for either custom or commercial grinding.
Efficiently operated by tractor or engine power.
Top quality construction for big capacity
and safe operation. MM Hammermills lead the
field in many ways. Heavy all-welded boiler plate steel
body and rotor chamber. Only a few moving parts. The
5 blade slinger-type fan and Rockwood pulley are firmly
keyed and balanced on heavy duty drive shaft.
E N D U R A N C E . . . L O N G L IF E
Acme soft center steel hammer tips with 4 carburized
grinding edges are reversible for longer life. High
carbon steel screens available with a wide variety of
perforations. Rotor revolves on high grade anti-friction
bearings sealed inside and out against dust and dirt.
Extra large feed collector. Ask your MM dealer or write
for more information about these trouble-free low cost
MM Hammermills.

M in

n ea p o lis

PO W ER

-M o l in e

IM P L E M E N T C O M P A N Y

M INNEAPOLIS 1, MINNESOTA, U. S. A.

N orth w estern

Banker,


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

N ovem ber,

Í9 4 6

L. O. Peterson has been elected as­
sistant cashier of the First National
Bank of Fergus Falls, Minnesota. Mr.
Peterson was born in Fergus Falls and
spent much of his earlier life there.
Later he was engaged in business at
Hankinson, N. D., and for the last
few years has been connected with
the national bank examiners in this
territory.

Bank Debits increase
Bank debits in Minnesota for Sep­
tember totaled $1,717,276,000, an in­
crease of 16 per cent compared with
$1,486,185,000 in September, 1945, ac­
cording to the Federal Reserve Bank
of Minneapolis.
Recent statements issued by banks
from all over Minnesota indicate a
continued upward trend in deposits
and total footings of the banks with
increases ranging from three per cent
to 55 per cent.

Advisory Committee Member
H. E. Atwood, president of the First
National Bank of Minneapolis, has an­
nounced the appointment of Henry S.
Borman, general manager of the
Franklin Co-operative Creamery Asso­
ciation, to the advisory committee of
the bank’s North Side Office, West
Broadway at Washington.
Mr. Borman is a director of the Na­
tional Dairy Council, president of the
Franklin Co-operative Credit Union,
and president-elect of the North Side
Commercial Club. He is a past com­
mander of the American Legion and
at present is treasurer of the North
Side Post’s housing committee.

Minnesota News

IRECTORS

of the

First

Grand

D Avenue State Bank of St. Paul
have elected James G. Goblisch, cash­
ier, to be a director and appointed
three assistant cashiers, all returned
servicemen. They are Russell H. John­
son, who was a member of the budget
loan department of the First National
of St. Paul until recently; Charles A.
Kjedsen, an employee of the First
Grand Avenue since last December;
and Malcolm W. Cutting, bookkeeper
and teller at the bank for five years.
Northwestern National Bank of
Minneapolis has announced election of
Harry L. Tyson, assistant cashier in
the instalment loan department, and

By

E. W . K IE C K H E F E R

Special Correspondent
Northwestern Banker
Walter R. Johnson, assistant cashier

in the mortgage department.
Marquette National Bank of Minne­
apolis has elected William A. Riek,
former assistant national bank ex­
aminer, to be auditor, replacing E. Ii.
Kulander who has been named assist­
ant cashier of the Chicago-Lake State
Bank.
American National Bank of St. Paul

43

has named Allyn W. Brown, assistant
cashier, to assist Vice President Guy
E. Dailey in the bank’s department
of public relations and new business.
Ten new members were “signed on”
the Clipper Club, comprising employes
of the First Group of Banks in Minne­
apolis who have been with the organ­
ization 25 years or more. The new
members are C. A. Burnham, Arthur
Cunnington, Joseph M. Downes, Percy
Godfrey, George Hirsch, George J.
Schaust, Stanley Schmit, Carl Turnrose, George J. Hruska and Ben S.
Woodworth.

Seven Twin Cities bankers went to
Oklahoma City for the sessions of the

O f course, w e would prefer to

m eet yo u
B«

)UT we

in

welcome the opportunity to

serve your Duluth Correspondent Bank require­
ments. This modern, progressive bank is YOUR
BANK. We desire to make it pleasant and easy
for you to use its facilities!

F IR S T


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

AND

\ M E R IC A N

NATIONAL BANK
OF DULUTH, MINNESOTA

Member Federal Deposit Insurance Corporation

N orthw estern

Ban ker. N o v e m b e r ,

1946

44

Minnesota News

imnGinniion

National Association of Bank Auditors
and Comptrollers. They are Dellos W.
Palmer, cashier, Chicago-Lake State
Bank; S. L. Jerpbak, comptroller,
Marquette National; AI Mills, Federal
Reserve, and Sumner Sinclair, auditor,
of the Northwestern National; Stanley
Williams, First National of St. Paul;
and Clarence Gieske, cashier of the
First Security State of St. Paul.
Clarence G. Haberland, manager,
announces completion of remodeling
and expansion of the West Broadway
office of the First National Bank of
Minneapolis.

The seventh w onder o f the
ancient world was this gigantic
statue of Apollo, called the Co­
lossus of Rhodes. And yet the
most important quality of the
Colossus was not its size, but
the imagination of its builder
and the integrity of its design.
Imagination and integrity —
two of the most important ele­
ments in human progress —are
basic Todd principles. Imagi­
nation to continue to make
banking safer and more profit­
able, and a m anufacturing
integrity that gives the Todd
supplies you buy —whether
they are checks, Protectograph
checkwriters and signers, pass
books, or other banking aids —
a guarantee of skilled work­
manship and dependability.
From tim e to time , as par t of
our w o rk fo r b a n k e rs , w e
pu bl ish b o o k le ts of sp ec ia l in ­
terest to the b a n k i n g p r o f e s ­
sion. W e wi ll b e g l a d to se n d
you a list of their titles on
re q u e s t, so that yo u m a y or de r
:n y c o p i e s yo u w o n t, w it ho ut
i ..p e n s e or ob li g a ti o n .

Plans are moving forward rapidly
for the Federal Reserve Forum at
Minneapolis November 21st and 22nd,
which will be attended by member
bank officers and employes other than
the executive heads. The program
calls for sessions on hanking and the
community, a half day at the Univer­
sity Farm and a half day to be devoted
to internal banking problems and an­
other session at which banking out­
look will be discussed. # #

Elect New Director
.John Dengler, director of the Goodhue County National Bank of Red
Wing, Minnesota, since 1922, resigned

from that post and the bank directors
elected G. H. Boxrud to fill the va­
cancy. Mr. Dengler asked to be re­
lieved of his duties some time ago.

Trust Meeting
Two Minneapolis bankers were
among the officers elected at the an­
nual meting of the Corporate Fiduciar­
ies Association of Minnesota held re­
cently in the Nicollet Hotel in Minne­
apolis.
Those chosen to head the organiza­
tion during the ensuing year are:
president, Ulric C. Scott, trust officer,
First Trust Company of St. Paul; vice
presidents, E. D. Cardie, assistant
trust officer, Marquette National Bank
of Minneapolis, and J. R. Colbeck,
vice president and trust officer, North­
ern Minnesota National Bank of Du­
luth; and secretary-treasurer, L. A.
Short, trust officer, First National
Bank of Minneapolis.
Guest speaker at the meeting was
Colonel Allan M. Pope, president of
the First Boston Corporation, who
discussed recent stock market develop­
ments and other related subjects.

St. Paul Bank Director
The election of C. F. Codere, presi­
dent of the St. Paul Fire & Marine

F

OR information on market opportunities in
Canada, sources of supply for raw materials and
manufactured goods, for every type of normal
banking service for your customers, call on The
Royal Bank of Canada. Branches serving every im­
portant industrial area, hundreds o f towns and
villages, offer valuable points of contact in every
part of Canada and Newfoundland. Your inquiries
are invited.

THE R O Y A L B A N K O F C A N A D A
In c o rp o ra ted

CO M PAN Y, INC.

HEAD

1869

O F F I C E - M O N T R E A l

New York A g e n cy—68 William Street
ROCHESTER

SALES OFFICES IN

\

W

N E W YORK

PRIN CIPAL CITIES

D IS TR IB U T O R S T H R O U G H O U T T H E W O R L D

N orthw estern

Ban ker, N o v e m b e r ,


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Federal Reserve Bank of St. Louis

1946

Norman G. Hart — Agents — Edward C. Holahan
Branches throughout Canada and Newfoundland,
in the West Indies, Central and South America.
Offices in London and Paris

Minnesota News

45

Insurance Company, to the board of
directors of the First National Bank
of St. Paul, was announced last month
by Julian B. Baird, president of the
bank.
Coming to the St. Paul Fire & Marine

c o n ta c t

T he F i r s t s - —

-

. . . tie s . . . with

...
......... “

' j ........... ........................ «

ness, industry, agricl

.........

8 through'

„ . % o { a l U ' ' el,anks
contacts wit'> *>' er
,
u your service an
C. F. CODERE
Director, First National, St. Paul

Insurance Company in 1908, Mr. Co­
here established the company’s busi­
ness in Canada and became assistant
to the president in 1920. He was ad­
vanced to vice president in 1925 and
in 1938 was elected president.
He has also held since 1938 the presi­
dencies of two subsidiary companies,
the Mercury Insurance Company and
the St. Paul Mercury Indemnity Com­
pany.

“ •

0 ....» W

ready to serve m man

BANKS
1
1

-

efficienc

tl)e usual limits <*f

I

alway

oiV1S10M
y ice President

AND

G eorge T. C aMPREGG
Richabd 3. L argess

f ic e P r e s i d e n t

g president

n^AER A -H arper -

A *

*

LEGAL QUESTIONS
(Continued from page 22)
part of tilt* work and agreed to provide
him with funds to pay for the lumber
used by him. The carpenter became
indebted to a lumber yard for certain
lumber used by him not only on Dopf’s
job but on other jobs as well. The car­
penter sent the yard a check in an
amount equal to the bill on Dopf’s job
from funds provided by Dopf.
No
specification was made by anyone that
the check should be applied to any par­
ticular bill. Tlie lumber yard applied
it to bills then due other than the Dopf
bill. Could it validly do so?

Yes, according to holdings in a num­
ber of jurisdictions including Minne­
sota, New York, Utah, and other states.
These jurisdictions follow the rule
that a creditor who has no direction
from his debtor may apply payments
made to him by the debtor as he sees
fit even though he may know that such

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

:J i

FIRST WISCONSIN NATIONAL BANK
OF M IL W A U K E E •
MEMBER

FEDERAL

W isconsin's

DEPOSIT

Bank

INSURANCE

N orthw estern

for

Banks

CORPORATION

Banker, N ovem ber,

1946

46

Minnesota News

payments arise from a suretyship
debt. The courts so holding reason
that the surety assumed just such a
risk by his lax dealings and that he
could have contracted to control the
application of the funds for his pro­
tection. Some states, such as Illinois
and Washington, take a contrary view
and require payment application to the
surety’s indebtedness.

and received from the yard other lum­
ber but the bill thereon was not due
for another sixty days. Could the lum­
ber yard apply the check to the bill
that was not yet due?

No. The rule referred to as the basis
for answering the previous question in
the affirmative is applicable only to
cases where both debts are matured
and the authorities supporting it state
positively that the creditor cannot
apply a payment to a claim that is not
yet due and payable.

Q.

Suppose that, in the preceding
question, the carpenter’s bill for the
Dopf lumber was the only bill then
due from him to the lumber yard at
the time the check was sent. Suppose
further that the carpenter had bought

Q.

Problems relating to the rights of
adopted children to inherit are not

uncommon to those dealing with es­
tate matters. In the absence of stat­
utes specifically covering the matter
do such children generally have the
right to inherit from their natural
parents subsequent to their adoption?

Yes. It is generally held that an
adopted child is, in the legal sense, the
child of both of its natural and of its
adopting parents and that it is not, by
adoption, deprived of its rights of in­
heritance from its natural parents un­
less a statute expressly so pro­
vides. # #

Joins City National
Ernest R. Esch, for nine years edu­
cational director and personnel ad­
ministrator of National City Bank,
New York City, has joined the staff

THE 3-C’ s!
C.

L.

F R E D R IC K S E N
President

M . A. W IL S O N
V ic e President
W . G. N E L S O N
Assistan t V ic e President
W . C. S C H E N K
Cashier

This bank is alw ay s ready
to help you buy, feed and mar­
ket your cattle. We specialize
in cattle, corn and cash!

C. L. A D A M S
A ssistan t Cashier

We urge you to use this great
Sioux City market—and to use
this bank for your Sioux City

J. S. H A V E R
A ssistan t Cashier
J A M E S L. S M I T H
Auditor

E R N E S T R. E S C H
Joins C ity N ational, Kansas C ity

correspondent.

T

L i v e
N

S t o c k

a t í o n a l
OF

SIOUX
M E

N o r t h w e s t e r n Ban ke r, N o v e m b e r ,


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

CITY,

M B E S

" J it e

B

IOWA

F, D . I . C .

" t/ te

1946

a n k

of City National Bank and Trust Com­
pany, Kansas City, Missouri, as per­
sonnel director.
Mr. Esch is a graduate of Park Col­
lege, took graduate work and received
his master’s degree in administration
at New York University, New York
City. He served four years in the
Marine Corps, taking part in the Oki­
nawa campaign and saw service in
China. Following his discharge in
February, with the rank of captain,
he became national director of educa­
tion and employment for the Veterans
of Foreign Wars, from which post he
comes to City National.
M o r e M (d a rk ey

't y &

S tt/ s

Young Bride: “ I’ve sure got my hus­
band where he eats out of my hand.”
Older Bride: “ Saves a lot of dish­
washing, doesn’t it?”

47

Joins Federal Reserve

S o n ili

lls ik o la

NEWS
L. C. FOREMAN
P residen t
Eikton

Receive "Merit" Award
The Rapid City National Bank was
named among the 13 banks and 581
industrial and financial corporations
to receive the “highest merit award”
conducted by the “ Financial World,”
New York financial weekly, in recog­
nition of the 1945 annual statement re­
port issued to their customers and
stockholders. Other banks receiving
the award are located in New York,
Philadelphia, San Francisco, Cleve­
land, Cincinnati, Peoria, Tulsa, Pitts­
burgh and Evansville, Indiana.
The annual dinner for the recipients
of the award was held at the Waldorf
Astoria Hotel in New York and was
attended by A. E. Dahl, president of
the bank.

Agricultural Agent
Appointment of Tony Westra, Min­
nehaha county agent since November,
1945, as agricultural and livestock
representative of the Northwest Se-

TONY W ESTRA
Joins Sioux Falls Bank

curity National Bank was announced
by Ralph M. Watson, bank president.
As well as representing the main
bank office at Sioux Falls where he
will have his office, he will serve
through the six branch banks at

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Federal Reserve Bank of St. Louis

G E O R G E M. S T A R R IN G
Secreta ry
Huron

Brookings, Chamberlain, Dell Rapids,
Gregory, Huron and Madison.
In addition to continuing his work
in furthering 4-H club projects, agri­
cultural activities of the Sioux Empire
fair, crop improvement work, dairy­
ing, herd improvement and purebred
cattle sales, Westra will assist at
other county fairs and the state fair
and be available to all farmers in this
area as an agricultural adviser, Wat­
son said. Westra took over his new
job November 1, when his resignation
as county agent became effective.
He is a member of Sioux Falls
American Legion post, the Lions club
and the Izaak Walton league. Previous
to coming here he was county agent
of McCook county three years.

Bank Debits Up
Bank debits in Mitchell, South Da­
kota, for the month of September 1946
were 138 per cent of September, 1945,
according to figures collected by the
Federal Reserve Bank of Minneapolis.
The first nine months of this year
were 137 per cent of a similar period
of 1945.
Bank debits in Aberdeen for Sep­
tember were 132 per cent of Septem­
ber, 1945. The first nine months of
this year were 128 per cent of a similar
period of 1945.
Bank debits in Yankton for the
month of September this year were
34 per cent higher than for the same
month in 1945, and for the first nine
months of 1946 they were 29 per cent
ahead of the similar period last year.
Bank debits in Rapid City for Sep­
tember, 1946, were 59 per cent greater
than September, 1945. The first nine
months of this year were 44 per cent
over a similar period of 1945.
The state of South Dakota showed
an increase of 23 per cent in Septem­
ber of this year when compared with
the same month in 1945. Cumulative
totals for 1946 were 128 per cent of
the first nine months last year.
Throughout the Ninth Federal Re­
serve district September debits were
119 per cent of the same month a year
ago, while debits for the first nine
months of 1946 rose to 118 per cent
of the 1945 total.

The Federal Reserve Bank of Min­
neapolis has announced the admission
to membership in the Federal Reserve
System of the First State Bank of
Pierpont, South Dakota.
AH Time High
Record sales of land and livestock
have sent deposits in South Dakota
banks skyrocketing to an all-time high
of $216,504,060 as of September 30th,
Banking Superintendent Verne W.
Abeel reported.
Deposits increased $22,189,868 in
state banks since June 29th, he said.
The September figure was approxi­
mately $32,000,000 in excess of the De­
cember 31, 1945, figure.
Reasons for the record deposits
were seen in the fact that farmers
did not sell last year’s crops until this
year. Likewise, livestock was held for
the all-time high prices which came
with the removal of OPA controls
this year.
Mr. Abeel predicted that with sale
of 1946 crops the final deposit figure
for this year will soar to an even
greater all-time record.
Abstract of bank reports based on
the September 30th call for condition
showed increases of $24,865,829 in de­
mand deposits and $623,278 in time
deposits. Net increase, however, was
reduced somewhat by a $2,374,649 de­
crease in U. S. government deposits
and a decline of $1,029,917 in those of
the state and political subdivisions.
Deposits by other banks decreased
$78,285.
Total demand deposits were $159.896,294, and time deposits totalled
$30,914,647.
The abstract revealed an increase
in loans and discounts from $26,489,358 to $30,264,274 plus a $10,020,533
rise in U. S. government obligation
holdings by banks. The latter item
was $128,935,537.
Total resources in all state banks
on September 30th were $227,134,797,
an increase of $22,641,385.

S io u x

F u lls

N ew s

B. ( AHALAN, president of the
First National Bank of Miller,
has been named a member of the board
of the executive council of the Ameri­
can Bankers Association. His appoint­
ment was made by C. W. Bailey, asso­
ciation president.

A

W. E. Perrenoud, cashier of the First
National Bank & Trust Co., Sioux
Falls, was chosen a director of the
Minnehaha Country Club.

The former FBI cell block in the
Northwest

Security

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National

Banke r, N o v e m b e r ,

Bank
¡946

48

South Dakota News

building in Sioux Falls—installed
seven years ago and never used—was
sold to the city of Highmore for use as
an addition to the Highmore city jail.

National Bank & Trust Co., and John
P. McQuillen, vice president and trust
officer of the Northwest Security Na­
tional Bank.

Ralph M. Watson, president of the
Northwest Security National Bank,
was elected president of La Elbon
Club in Sioux Falls.

John Himnan, assistant cashier of
the Northwest Security National Bank,
Sioux Falls, was in a hospital in that
city several weeks for medical observa­
tion and treatment.

Three Sioux Falls bankers were in
attendance at a meeting of the South
Dakota advisory committee of the U. S.
savings bond conference at Huron last
month. They were C. A. Christopher«
son, chairman of the board of direc­
tors of the Union Savings Bank; T. N.
Hay ter, vice president of the First

Eugene T. Hobbs, assistant cash­
ier of the Northwest Security National
Bank in Sioux Falls, tendered his
resignation from that post, effective
November 1st, to become associated
with an automobile firm. He was with
the bank for 1(1 years.

NORTHWEST SECURITY
NATIONAL BANK
Sioux Falls, South Dakota

South Dakota's Leading Hank
SEPTEMBER 80, 1946
RESOURCES
Cash on Hand, in Federal Reserve Bank, and Due from Banks
and Bankers .....................................................................................$ 8,758,571.23
U. S. Government O bligations............................................................ 25 668 930.59
State and Municipal Bonds.................................................................. 1,005 899.13
Other Bonds and Securities................................................................
884,285.47
Stock in Federal Reserve Bank in M inneapolis........................................................
Overdrafts
..........................................................................................................................
Loans and Discounts ........................................................................................................
Banking Houses ........................................................................................................ ■•••
Includes Banking Houses at Sioux Falls, Brookings, Chamberlain, D el
Rapids. Gregory, Huron and Madison, all clear of encumbrance.
Interest Earned but Not Collected...............................................................................

$36 317 736.42
39 000.00
14 191.51
4,998,651.59
268,750.00
149 271.79

T O T A L ......................................................................................................................$41,787,601.31
L IA B IL IT IE S
Capital Stock— Common ....................................................................... $
Surplus ......................................................................................................
Undivided Profits and Reserves..........................................................

500,000.00
800 000 00
466 715.13

Reserve for Interest, Taxes, and Other Expenses................. ..................................
Interest Collected but Not Earned...............................................................................
D enosits:
Time ...................................................................................................... $ 6 257 683.30
Demand ................................................................................................ 31 400 576 69
U. S. W ar L oan................................................................................... 2,063 788.72

$ 1,766 715.13
281,126.54
17,710.93

$39 722 048.71
T O T A L ......................................................................................................................$41,787,601.31

BROOKINGS. CHAMBERLAIN, DELL RAPIDS.
GREGORY, HURON, MADISON
R A LPH M. W ATSON
President
J. V IR G IL LOWE
Vice Pres, and Cashier

Affiliated with N orth w est B ancorporation

Member Federal Deposit Insurance Corporation

N orthw estern

Banke r,


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Federal Reserve Bank of St. Louis

November,

1946

Following a meeting oi the board of
directors, S. Sloan Colt, president of
Bankers Trust Company of New York,
announced the following changes in
title:
Charles Borman from deputy comp­
troller to vice president.
Julius Paul from treasurer to vice
president and treasurer.
William F. Rutherford from assist­
ant vice president to vice president.

The Mercantile-Commerce bank and
Trust Company, St. Louis, has an­
nounced the appointment of F. C. Lexa,
assistant cashier, as assistant vice
president.

New Chase National Official
Thomas H. McKittrick, whose term
of office as president of the Bank for
International Settlements in Basle,
Switzerland, expired on June 30th, has
been elected a vice president of The
Chase National Bank and is now at the
head office of the bank in New York
City. Mr. McKittrick will give his
attention to matters of policy involved
in foreign relationships and loans, as
well as to the operations of the bank
in the foreign field.

Chicago Bankers School

Approximately one hundred Cook
county bankers are attending a course
in foreign banking and the financing
of foreign trade, conducted by The
First National Bank of Chicago. Class­
es are held each Monday and Thursday
afternoons from 3:30 to 5:30, for a total
of six weeks. The discussions cover
such subjects as foreign remittances
and collections, purchases and sales of
foreign exchange, and import and ex­
port letters of credit, with the em­
phasis placed on the practical aspects
of these subjects.

G e sd Public Relations

BRANCHES AT

JOHN P. M cQUILLEN
Yiee Pres, and Tr. Officer

Bankers Trust Changes

St. Louis Man Promoted

STATEM EN T OF CONDITION

of

Ed Eaton, teller of the Northwest
Security National Bank, Sioux Falls,
was called to Duluth by the death of
his mother. He formerly lived at
Duluth, being connected for 10 years
with the City National Bank there.

The Audichrcn, a macnine in the
lobby of the First National Bank in
St. Louis, which gives the time of day
over the telephone, is a hard worker
for the Community Chest during the
annual campaigns. Brief messages,
such as “Do Your Best for the Com­
munity Chest,” are heard by approxi­
mately 50,000 St. Louisans every 24
hours. Each message is followed by
the name of the bank and the time of
day.

49

.'Vori li D ii k o la

C. C. W ATTAM
Secreta ry
Fargo

C . W . BU R GES
Presiden t
E d g e le y

H

a n k e r s

A

ff a i n

H

IVE prominent North Dakota bank­
ers were among officers and direc­
tors reelected at the annual meeting
of the Greater North Dakota Associa­
tion last month.
R. J. Hughes, president, National
Bank in Wahpeton, remains as presi­
dent. F. A. Foley, president, Rolette
County Bank, Rolla, was reelected a
vice president; F. A. Irish, chairman
of the board, First National Bank &
Trust Co., Fargo, reelected treasurer;
D. A. Stewart, president, First Nation­
al Bank, Bowman, and F. D. McCart­
ney, chairman and vice president,
First National Bank, Oakes, reelected
to the board of directors.
A nine-point program for the asso­
ciation’s expanding efforts during the
coming year was enunciated. Five
new directors will be named soon by
President Hughes. The association in­
tends to participate in and actively
promote every field of educational, in­
dustrial and agricultural endeavor
possible in North Dakota.

F

Renew Charters
The applications of the following in­
stitutions for renewal of corporate
existence were approved at a recent
meeting of the North Dakota State
Banking Board:
Peoples & Enderlin State Bank,
Enderlin, North Dakota, for a period
of twenty-five years from October 21,
1946.
Bismarck Building & Loan Associa­
tion, Bismarck, North Dakota, for a
period of twenty years from Decem­
ber 18, 1946.
Metropolitan Building and Loan As­
sociation, Fargo, North Dakota, for a
period of twenty years from Septem­
ber 24, 1946.

e n ti

U r a n ft

Bank of Hope, was named vice presi­
dent, and R. M. Hougen, vice presi­
dent American National Bank of Val­
ley City, was reelected secretary and
treasurer. Mr. Schirber was named to
the state executive committee, and A.
C. Thorkelson, president, American
National Bank of Valley City, to the
state nominating committee.
Nearly 80 bankers attended the din­
ner held at the Rudolf Hotel, and the
business meeting followed.

New Advertising Manager
Ben R. Meyer, president of the Union
Bank & Trust Company of Los Ange­
les, announces appointment of Rod
Maclean, widely known Los Angeles
financial advertising man, to the post
of advertising manager of the bank.
Mr. Maclean, whose newspaper ads
have won nationwide recognition on

Named President
L. E. Callahan, president of the First
State Bank of Munich, was named
president of the northeast group of
the North Dakota Bankers association
at a meeting in Grand Forks last
month.
Gilbert Brudvick, vice president and
cashier of the Goose River Bank of
Mayville, was elected vice president;
Fred Hoghaug, vice president, Ramsey
County National Bank of Devils Lake,
secretary; S. N. Lommen, president,
First State Bank of Buxton, member
of the executive committee, and Theo­
dore H. Tufte, cashier of the Northwood State Bank, was named to the
state nominating committee.

Gam 7 Millions

Increases of more than seven mil­
lion dollars in deposits and almost
seven million dollars in resources in
the period from September 30, 1945, to
September 30, 1946, were reported by
Greater Grand Forks national banks.
Following a call from the comptrol­
ler of the currency for a statement of
the condition of all national banks at
the close of business on September
30th, the three banks reported a total
of $31,275,586.11 in deposits and $33,439,998.09 in resources.
At the end of September, 1945, de­
Southeast Election
C.
J. Haarsager, cashier, Litchville posits totaled $24,195,304.93 and re­
State Bank of Litchville was elected sources amounted to $26,372,923.36.
president of the Southeastern district
of the North Dakota Bankers associa­ Agriculture Report
North Dakota agriculture is current­
tion in Valley City last month. He
succeeds P. J. Schirber, president, ly in a stronger financial position than
.lames River National Bank of James­ it was at the close of World War I,
according to Gilman A. Klefstad, presi­
town.
M. G. Pederson, cashier, First State dent, Sargent County Bank, Forman,


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Federal Reserve Bank of St. Louis

who has been designated by the North
Dakota Bankers Association as chair­
man. Sargent County Bankers.
Reporting on the results of a na­
tional survey of bank lending in 1945
made by the Agricultural Commission
of the American Bankers Association,
he said that in North Dakota 68.2 per
cent of the 69,649 North Dakota farm­
ers did avail themselves of bank
credit. The banks in the state which
serve agriculture made 75,923 loans to
47,469 farmers last year for a total
amount of $40,277,000. On January 1,
1946, these banks had farm loans out­
standing of $18,529,000.

ROD M ACLEAN
W ith Union Bank & Trust, Los Angeles

numerous occasions, has been a promi­
nent figure in Los Angeles advertising
circles for the past fifteen years and
has been in western banking for 26
years.
He served two terms as secretarytreasurer and three terms as a director
of the Advertising Club of Los Angeles.
He is a director of the Financial Adver­
tisers Association, and was program
chairman for the association’s national
convention held in San Francisco last
month, and has been a member of
numerous committees devoted to civic
betterment and community welfare.
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Ba n ke r, N o v e m b e r ,

1946

W ÊËÊÊÊÈBÈÊÈÊSËÊHÊÊHKÊ1
COMPLETE

CORRESPONDENT

FACILITIES

OFFICERS
HERBERT M. BUSHNELL

ELLSWORTH MOSER

President

Executive Vice President

VICTOR B. CALDWELL
Vice President

HAROLD T. UEHLING

RICHARD H.

ARTHUR D. ANDERSON

MALLORY
Vice President

Trust Officer

Cashier

THOMAS F. MURPHY
Vice President

JAMES L. SHIELDS

CASPER Y. OFFUTT

NELS L. SHOLIN

Assistant Cashier

Vice President

Assistant Cashier

EDWARD W . LYMAN
Assistant Vice President

ELDRIDGE C. McELHANEY
Assistant Trust Officer

HARRY E. ROGERS
Assistant Vice President

HENRY B. PIERPONT
Assistant Trust Officer

AUSTIN L. VICKERY
Assistant Vice President

LEO M. BROWN
Comptroller

U N IT E D ST A T E S
ñfaiional BAJVK of Omaha
J

MFMRFR FFfiFRAI nFPfKIT IMSMDAMrF mDPftD ATIftfci

J
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Federal Reserve Bank of St. Louis

1946

51

N e b r a s k a

NEWS
G LE N T. G IB SO N
P re sid en t
Gibbon

X i > b r a s k a

C A R L G, S W A N S O N
S ecreta ry
O m ah a

L e n d s

Farmers in Nebraska use only a
sixth of the bank credit available to
them. However, in 1945, 85 per cent
of the 112,000 Nebraska farmers did
avail themselves of bank credit.
Ninety-five thousand Nebraska farm­
ers borrowed three hundred million
dollars in 1945. On January 1, 1946,
farm loans outstanding totalled seven­
ty-one million dollars, but banks had
available for farm loans almost five
hundred seventy million dollars.

Falls City Man Retires

Frank Buchholz, cashier of the First
EBRASKA bank deposits during cashier and trust officer of the Ne­ National Bank, Falls City, Nebraska,
World War II years increased braska City Bank, which began volun­ resigned his position last month, it
tary liquidation last month.
315 per cent. They rose from $311,was announced by the bank.
571,000 June 30, 1939, to $1,291,699,000
Edgar Roesch, who had been em­
on December 31, 1945.
ployed by the bank prior to entering
Adams "Bank" Run
The percentage of expansion was
The shortage of shotgun shells the army during the war, has returned
greater than for any of the other
brought a run on the Adams State to the institution in the position of
states or parts of states of the sevenBank of Adams, Nebraska. But not assistant cashier. He had been work­
state Tenth Federal Reserve District.
because the scarce item was kept in ing for the Independent Lumber Com­
These figures are included in an
pany since returning from service.
the bank vault.
analysis of bank deposit distribution
Mr. Buchholz had been connected
Instead the “run” resulted when a
made by Clarence W. Tow, financial
local dealer received a shipment of with the First National Bank about
economist for the Federal Reserve
shells. He required each purchaser 34 years. He became cashier on the
Bank of Kansas City. Other conclu­
in line to show his hunting permit death of J. S. Lord about eight years
sions in the report included:
ago.
before he could buy ammunition.
Growth of bank deposits was great­
His plans for the future have not
The bank is the only place in town
er in the Tenth District than in any
been announced.
issuing hunting permits.
of the other Reserve districts. De­
posits grew in this district from $2,Add Two Employes
Nebraska Farms Strong
117,000,000 to $7,312,000,000 in that
New employes recently added to the
Nebraska agriculture is now in a
time. This was a 245 per cent in­
stronger position financially than it staff of the Plainview State Bank,
crease.
was at the close of World War I, ac­ Plain view, Nebraska, are Dorraine
Beats National Figure
cording to reports from a survey con­ Weber, stenographer and bookkeeper,
Deposits for the country as a whole ducted by the agricultural commission and Gloretta Prange, bookkeeper and
increased only 158 per cent, a gain of of the American Bankers Association. clerk.
64 billion dollars to 166 billions dur­
ing the war.
Farm income was the largest factor
N e u * 0 'a s h i w
i s 0 o iu jv u U ila lv d
in income payment increase in Ne­
braska, Colorado and Wyoming. It
ranked second in the other states of
the Tenth District. For the entire
district, farm income accounted for
one-fifth of the increase. War plant
pay rolls and military payments each
accounted for more than one-sixth of
the increases.

N

Down From Peak
The importance of farm crops to
the district is emphasized in this an­
alysis.
As in the rest of the country, the
analysis points out, bank deposits in
the Tenth District have declined from
their peak. From December 31, 1945,
to June 29, 1946, total deposits de­
creased 8 per cent in city reserve
member banks but were unchanged in
the country banks.

Liquidating Agent
President Carroll Lewis of the Bank
of Peru, Nebraska, has been appointed
liquidating agent for the Nebraska
City National Bank. Mr. Lewis is

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Alvin E. Johnson, (le ft), president o f the Live Stock National Bank of Omaha,
congratulates Chester Gf. Pearson, upon his promotion to cashier. In center are
Elmer C. Olson who succeeds Mr. Pearson as assistant cashier and A. S. Chaves,
who has joined the staff as auditor.
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1946

52

Nebraska News

A ebraska Í 'mirent ion Uns
R ecord A ttendance in
Glen T. Gfbson of Gibbon Heads
Association for Corning Year
By BEN HALLER, JR., Associate Editor
The NORTHWESTERN BANKER
EBRASKA bankers took advan­
tage of Columbus Day, a legal
holiday in their state, and turned
out 1,000 strong for the annual Ne­
braska Bankers Association Conven­
tion in the Cornhusker hotel in Lin­
coln last month. They were not dis­
appointed, either, for the hard work­
ing Lincoln committees and Secretary
Carl Swanson had a full two-day pro­
gram prepared for them. In addition,
the many bankers’ wives who attended,
were pleasantly entertained with style
shows and luncheons.
Glen T. Gibson, president, Exchange
Bank, Gibbon, was moved from the
vice presidency of the association to
the presidency. Elected to fill the
position of vice president was J. O.
Peck, president, Central National
Bank, Columbus.

N

Representing the nominating com­
mittee, A. ,1. Jorgenson, president,
The American National Bank of Sid­
ney, also presented the following men
as candidates for the Executive Coun­
cil and they were unanimously voted
in: H. H. Echtermeyer, vice president,
Live Stock National Bank, represent­
ing Omaha; Fred S. Aldrich, vice presi­
dent, Continental National Bank, rep­
resenting Lincoln; and W. H. Pierce,
president, First National Bank, Osce­
ola, representing Group Two.
H. A. Sell neider, Plattsmouth State
Bank, was elected president of the
State Association’s Past President’s
Club, replacing J. M. Sorenson, execu­
tive vice president, Stephens National
Bank, Fremont. A. J. Jorgenson of
Sidney was named vice president.
At the A. B. A. session the following

men were elected; 1. R. Alter, presi­
dent, First National Bank, Grand Is­
land, nominating committee, with
Otto Kotoue, Jr., vice president, Home
State Bank, Humboldt, as alternate;
L. J. Titus, president, First National
Bank, Holdrege, vice president repre­
senting national banks; Earl Wilkins,
president, Geneva State Bank, Geneva,
representing state banks; John Lauritzen, assistant cashier, First National
Bank, Omaha, representing savings
banks, and Howard Burdick, cashier,
Central National Bank, Columbus,
representing trust divisions.
Resolutions were presented by J. Y.
Castle, vice president and cashier, Mc­
Donald State Bank, North Platte.
Retiring President V. E. Dolpher
introduced Ernie Thompson to the
convention as the new assistant to

A t thv t'ornliuslsvi’ ftm ro n i ion in U n en ln
COLUMBUS DISCOVERED AM ER ICA IN 1492 and just 454
years later, Nebraska Bankers offered Christopher a vote of
thanks when they took advantage o f the legal holiday which
honors him October 12th, and journeyed to Lincoln for their
annual meeting. The Cornhusker conventioneers turned out in
numbers sufficient to top the 1,000 mark by a substantial margin.
Some of the bankers and their wives are shown on the opposite
page and reading from left to right in each picture they are:
1. V. E. Dolpher, retiring president o f the Nebraska Associ­
ation and president, First National Bank, David City, congratu­
lating J. O. Peck, newly elected vice president o f the Association
and president, Central National Bank, Columbus, while Glen
T. Gibson, new president o f the Association and president,
Exchange Bank, Gibbon, is receiving congratulations from
Carl Swanson, secretary, Nebraska Bankers Association.
2. A tense moment in a Cardinal-Boston World Series game
is reflected in the faces of G. A. Gregory, Federal Reserve Bank,
Kansas City; F. L. Ferrell, cashier, Nebraska State Bank,
Oshkosh, who is being reassured by Wade Martin, vice presi­
dent, Live Stock National Bank, Omaha, that the Cards will
come through, and William N. Mitten, president, and Robert L.
Voss, vice president, both of the Stephens National Bank,
Fremont, who look a bit worried about that Boston hit.
3. Raymond Moley, nationally known columnist, preparing
to tell convention delegates about our “ Political Horizons.”
4. This friendly group at the social hour in the Cornhusker
ballroom is made up of Mrs. Edward Huwaldt, Charles B.
Shapard, assistant vice president, Mercantile-Commerce Bank
and Trust Co. of St. Louis; Edward Huwaldt, executive vice
president, Commercial National Bank of Grand lalsnd; Mrs.
Fred Peters, Fred Peters, Nebraska state director o f banking,
and Mrs. Charles Shapard.
5. G. A. Gregory, Federal Reserve Bank, Kansas City; C. J.
Mortensen, president, Nebraska State Bank of Ord, and Otto
Kotoue, Sr., president, Home State Bank of Humboldt, during
a “ ten-minute” break.
6. W aiting for the “ Call to O rder” of the Saturday morn­
N orthw estern

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Federal Reserve Bank of St. Louis

November,

1946

ing session are F. R. Kingsley, president, Minden Exchange
National Bank of M inden; B. O. Campbell, vice president, First
National Bank o f Lincoln, and G. E. Nelson, vice president,
Farmers State Bank o f Millard.
7. Carl Swanson, Association secretary; Edgar McBride,
past president of the Association and president, Commercial
Bank of Blue H ill; C. W. Bailey, president o f the American
Bankers Association and president, First National Bank of
Clarksville, Tennessee, and R. W. Trefz, president, Beatrice
State Bank o f Beatrice.
8. Compliments on the very fine L adies’ Program were pre­
sented by Mrs. Carl Swanson to Mrs. Byron Dunn, whose hus­
band is president o f the National Bank o f Commerce in Lincoln.
9. Probably the youngest and without a doubt among the
most handsome at the convention were these four Army and
Navy veterans— Charles W alcott, Security National Bank o f
Sioux City; Jack Nielsen, City National Bank and Trust Com­
pany of Kansas City; J. P. Krogh, Stock Yards National Bank
o f Omaha, and Ernie Thompson, new assistant to the Associ­
ation secretary.
10. Standing in this picture are Mrs. Emil Placek, whose hus­
band is president o f the First National Bank o f Wahoo, and
Mrs. Estella Thorpe Smith, vice president of the Bank of
Brainard. Seated is Mrs. C. W. Bailey, w ife o f the new A.B.A.
president.
11. Another “ between sessions” shot, this time of Ivan W.
Hedge, cashier, Filley Bank o f Filley; W. H. Pierce, president,
First National Bank of Shelby, and Charles S. Stone, City
National Bank o f Hastings.
12. The man on the left isn ’t really that tall. He is Vincent
Rossiter, cashier, Bank o f Hartington, snapped while standing
on the mezzanine stairway talking to Joe Grant, vice president,
First National Bank o f Sioux City, Iow a; Leon Markham, state
director o f the U. S. Savings Bond division for Nebraska, and
Morris Townsend, a prominent convention speaker and director
of the banking and investment section, U. S. Savings Bond
division, Washington, D. C.


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Federal Reserve Bank of St. Louis

54

Nebraska News

Secretary Carl Swanson in the asso­
ciation office. He is a graduate of
Omaha schools and was discharged re­
cently from the Navy Air Corps where
he served as a pilot.
Briefed for quick reading, here is
what the speakers said at the conven­
tion:

Glen T. Gibson, president, Nebraska
Bankers Association and president,
Exchange Bank, Gibbon: “As bankers
we must: (1) Develop a sounder qual­
ity of bank service; (2) provide ade­
quate production credit; (3) provide
the types of consumer credit our com­
munity needs; (4) make loans to vet­

WE SEEK TO MAKE
OUR INTIMATE KNOWLEDGE
OF THIS TRADE TERRITORY
OF VALUE TO CORRESPONDENTS

St. Joseph. Missouri
Member Federal Deposit Insurance Corporation

the I'oiif inenfail offers the complete service
of its Foreign Department, including the handling of commer­
cial letters of credit, export drafts, foreign remittances, and all
other foreign transactions, to its correspondents. If you have
specialized foreign banking problems that require the personal
attention of Officers with contacts and experience abroad, we
should enjoy serving you.

The CONTINENTAL
BANK

&

TRUST

COMPANY

of NEW YORK
30 Broad Street, New York 15, N. Y.

erans on a sound basis. Our task is to
think and plan and to lend a helping
hand whenever and wherever we can.”
C. W. Bailey, newly-elected president
of the American Bankers Association
and president, First National Bank,
Clarksville, Tennessee, made one of
his first appearances since his election
when he addressed the assembly the
first day on the subject “ Five Talent
Bankers.” The title for his talk is
taken from the biblical passage cov­
ered in verses 15-39 in the 25th chapter
of Matthew. Mr. Bailey’s interpreta­
tion of this passage was presented
very forcefully when he compared it
with the “talents” of bankers and
pointed out the obligation that bankers
have to dispose of these “talents” by
doing a good job in their business
dealings with customers and the pub­
lic.
He then outlined a six-fold program
which he said the country banker
should strive to accomplish in order
to secure the structure of agriculture.
(1) A diversified and well balanced
farm program.
(2) Payment of the land mortgage
debt.
(3) Setting up reserves of cash.
(4) Prevention of a farm land price
boom.
(5) Conservation of the soil.
(6) Education of the farmers of the
future.
Morris M. Townsend, director of
banking and investment section,
Cnited States Savings Bonds division:
“ It is the long-range aim of the Treas­
ury Department to spread the public
debt as widely as possible so that more
individuals may receive a greater
share of the interest on the debt rather
than to have the bonds concentrated
in the hands of a few owners as they
were shortly after World War I.”
T. Albert Potter, president, Elgin
National Watch Company, Elgin, Illi­
nois: “Nebraska’s low state debt is
nothing to be proud of. I would
much rather have the state debt high
and the federal debt low because it
brings home to the state and its con­
stituents the amount of the debt much
more clearly and pushes away the
ever-reaching claw of the federal gov­
ernment.
“Bankers must re-educate the people
to understand the importance of keep­
ing an incentive to progress.”

BANKS

Bought and Sold

M em b er F ed era l D e p o sit In su ra n ce C orporation

Confidentially and with becoming dignity

M em b er F ed era l R ese rv e System

BANK E M P L O Y E E S P LA C ED .
40 Y e a r s S a t i s f a c t o r y S e r v i c e

THE CH A RLES E. W ALTERS CO.
OM AHA. N E B R A S K A

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1946


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55

56

Nebraska News

.1. V. Webster, vice president and
cashier, First National Bank, Chadron:
“ It doesn’t seem too much trouble for
the government to establish an emer­
gency any day of the week. Thus,
government emergencies, because of
an emergency, are continued in their
existence and subsidized by the gov­
ernment. The fact remains that to con­
tinue them is unfair to private busi­
ness. Eventually, the federal govern­
ment, through its agencies, will be
running the whole show and private
business will be out the window.
“Our state and national banking as­
sociations must become interested and
align themselves with other trade

associations and must convince Con­
gress that the private lender must not
be forced to face competition by subsi­
dized government lending agencies.”
E. AY. Rossiter, president, Bank of
Hartington, discussing a bill to provide
for “Loss Reserves Before Taxes” :
“This legislation would aid bankers to
more nearly attain impregnability of
financial structure through providing
a definite method whereby banks
might establish loss reserves in years
of good earnings against losses in
years of depression and lean earn­
ings.” Mr. Rossiter said this bill was
proposed unsuccessfully to the resolu­
tions committee at the national A. B. A.

convention in Chicago recently. He
stated the only way to get action on it
is for small banks, which he said com­
pose 80 per cent of the A. B. A., to all
become interested and act on the bill.
R. G. Gustavson, Chancellor of the
University of Nebraska at Lincoln:
“At the present time enormous sums
of money are being spent by the fed­
eral government mostly through the
army and the navy in support of basic
science. In some of our institutions
the annual grants for basic science go
into the millions.
“The important thing to notice is
that all basic patents under this pro­
gram will be owned by the federal
government. It cannot be otherwise
if the federal government furnishes
the money.
“Universities today are crying for
support of the basic sciences. Practi­
cally the only group to heed that cry
has been the army and the navy. 1
therefore wish to appeal to you who
believe in a free enterprise system to
give thought to what is going on in
our social structure.”

Increase Capital

BUSINESS OPPORTUNITY
^ I *HE expanding peacetime trade throughout this nation
is making the broad highway o f commerce truly a road
to business opportunity.
The American National is ready and willing to help cor­
respondent banks keep their customers’ road free from problems
pertaining to finance. A number o f banks have found the spe­
cialized knowledge and experience o f our officers of practical
value in finding the answers to financial questions confronting
their customers. Possibly we can be similarly helpful to vou.

AMERICAN NATIONAL BANK
\\I> T R U S T C O M P A N Y
O I

C H IC A G O

LA S A L L E S T R E E T J
Member Federal Deposit

O U R

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November,

I S

1946

t AT W A S H I N G T O N

"sjjil lllsS Y Insurance Corporation

T O

H E L P

B U S

I N E S S

The capital of the First National
Bank of Holdrege was increased from
860,000 to $100,000 last month.
The directors of the bank on Octo­
ber 8th declared a stock dividend to
all stockholders out of surplus of
$40,000. The comptroller of the cur­
rency notified the bank on October
15th that the increase in capital had
been allowed by their office and the
capital was increased as of that date.
This now gives Holdrege and its
territory a bank with capital of $100,000, surplus of $100,000, and individual
profits and reserves of over $160,000.
This is the first time the capital has
changed since 1893 when L. J. Titus,
president, purchased control of the
bank from the original stockholders.

identify Robber Suspect
A bank robber, now serving time in
the penitentiary at Jefferson City,
Missouri, for robbing a bank in Mis­
souri, is suspected of being the man
who robbed the Home State Bank in
Humboldt, Nebraska, last spring. He
previously served time in the peniten­
tiary, and has a criminal record.
A representative of the FBI at
Omaha was in Humboldt recently
with pictures of the convict, for com­
parison with the one who robbed the
bank. Otto Kotouc, Sr., president of
the bank, and Betty Elaine Richard­
son, an employe, who were in the
bank when it was robbed, looked over
the picture and stated that it showed
a resemblance to the man who robbed
the bank, and they believe it to be the
same man.

Nebraska News

57

in the Tenth District than in any of the
other Federal Reserve districts.
Deposits for the country as a whole
increased 158 per cent.
Mr. and Mrs. J. T. Stewart III spent
the Columbus Day week-end at the
Stewart cottage on Lake Okoboji. Mr.
Stewart- is vice president and cashier
of the First National Bank of Omaha.
The Stewarts’ son, J. T. Stewart IV,
has entered Fountain Valley School at
Colorado Springs, Colorado.
Mr. and Mrs. A. C. (Cub) Potter of
EPOSITS in Omaha banks de­ Savings Bonds were recommended as
New York City were recent guests of
creased nearly $2,000,000 and loans part of such a program.
Mr. and Mrs. W. B. Millard, Jr., in
increased more than $10,000,000 be­
W. B. Millard, Jr., vice president of
Omaha. Mr. Potter is a former Omaha
tween June 29th and September 30th,
according to figures in response to a the Omaha National Bank, took a lead­ investment banker.
ing part recently when the deed was
hank call as of September 30th.
signed, the checks handed over and
Friends of Mr. and Mrs. J. B. Fraz­
However, current deposits were the Omaha Veterans’ Hospital site be­
nearly four times those of pre-war came the property of the Veterans’ ier, Jr., dined on antelope meat at a
dinner given by the Fraziers recently
days. The September 30, 1946, total Administration.
at the Omaha Club. Mr. Frazier,
was $428,874,851, compared with $430,Mr. Millard, as chairman of the Vet­ Omaha investment banker, shot the
834,850 on June 29, 1946.
erans’ Hospital Committee, thanked
In June, 1939, for example, total de­ the County Board for its part in pro­ antelope on a hunting trip in the
mountains near Casper, Wyoming. He
posits were $122,119,000.
curing the site (formerly occupied by made the trip by train, plane and
Loans on September 30th this year the Omaha Field Club’s golf course).
jeep.
totaled $68,779,559.
The decrease in deposits was as­
Wallace Spear, trust officer of the
Members of a new special committee
cribed to the government’s with­ First National Bank of Omaha which
drawal of funds as payments on the had held the money in escrow, pre­ on air transportation, appointed by
national debt.
sented a $34,000 check to Joseph Mayor Leeman of Omaha, include J.
F. McDermott, vice president of the
The loan increase reflected a greater Fradenburg, attorney for the Field
demand for money.
Club, and $2,000 to County Board First National Bank of Omaha. Fran­
Chairman Roman Hruska for the cis P. Matthews is chairman.
Nebraska farm leaders and econo­ County’s share. The County owned
Richard Mallory’s team, “The Slug­
mists met with officers of the Nebras­ the site and the golf club had a long­
gers,” in the recent Omaha Chamber of
ka Bankers Association in Omaha re­ term lease.
Commerce membership drive, signed
cently.
Nebraska bank deposits during as a Chamber member Maj. Gen. W.
The purpose of the meeting, accord­
ing to Toni Headley of Lincoln, chair­ World War II years increased 315 per (J. Livesay, commander of Army forces
man of the Agricultural Section of the cent. They rose from $311,571,000 stationed at Omaha. Mr. Mallory is
Nebraska Advisory Committee to the June 30, 1939, to $1,291,669,000 on De­ vice president of the United States Na­
tional Bank of Omaha.
United States Savings Bond Division, cember 31, 1945.
This was the report of the Tenth
was to formulate a program to be
When Omaha good will trippers
recommended to Nebraska farmers Federal Reserve District, which said
and ranchers as a guide for maintain­ Nebraska’s percentage of gain was visited Valentine, Nebraska, recently
ing financial security in the postwar greater than for any of the other seven on their jaunt which also took them
into South Dakota and Wyoming, they
states in the district.
period.
Growth of deposits also was greater were welcomed by officers of the Bank
Increased purchases of Series E

D


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Federal Reserve Bank of St. Louis

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Banke r, N o v e m b e r .

1946

58

Nebraska New$

of Valentine, including President H. L.
Kuhn. Mr. Kuhn started in the bank­
ing business in Omaha in 1905 and
went to Valentine in 1910.
In a photograph taken at the Valen­
tine bank were Homer H. Peterson,
Peterson Lithographing and Printing
Company; A. J. Rhodes, Omaha Na­
tional Bank; Herb Echtermeyer, Live
Stock National Bank of Omaha; John
A. Changstrom, Omaha National Bank;
Mr. Kuhn and John Rinn, First Na­
tional Bank of Omaha.
Stephen J. Wirtz, assistant cashier
of the Omaha National Bank, was
chairman of a discussion group at the
Tri-State Conference of the National
Association of Credit Men at Cedar
Rapids, Iowa, last month.
Mr. Wirtz, president of the Omaha
Association of Credit Men, was one of
400 credit executives from Nebraska,
Iowa and South Dakota who attended
the 22nd annual conference.

The old Bank of Florence elm tree
will be spared, Omaha City Forester
Frank Pipal said recently.

The tree, long a landmark in sub­
urban Florence, stopping place of the
Mormons in their early-day trek across
the country, will be topped, instead of
cut down as previously planned. The
tree stands on city property near the
old Bank of Florence building at 8502
North 30th Street.
Mr. Pipal decided to save the old
tree after getting a number of protests
against felling it.
Mr. and Mrs. Frederick W. Clarke,
Sr., of Omaha recently observed their

fifty-seventh wedding anniversary.
Mr. Clarke is an investment banker.
The couple has two children, F. W.,
Jr., of Omaha, and Mrs. Lloyd S. Smith
of Washington, D. C. They have lived
in Omaha since 1908.
For Omaha’s Community Chest
drive, J. F. McDermott, First National
Bank, is chairman of the initial gifts
committee, and Richard H. Mallory,
United States National, co-chairman of
the business division.
Ellsworth

Moser,

vice

president,

United States National Bank of Oma­
ha, was one of the speakers at a recent
mass meeting of the personal contact
bureau of the City-Wide Improvement
Committee of Omaha. Mr. Moser is
chairman of the Policy Advisory Com­
mittee. C. W. Mead, vice chairman,
was another speaker.
W. Dean Vogel, vice president of the
Live Stock National Bank of Omaha,
is chairman of the Citizens’ Public
School Committee, which expected to
make its recommendations on Omaha
school problems last month. Mr. Vogel
said the committee received a great
deal of material from Omaha organiza­
tions pertaining to the school prob­
lem. The committee wrote all key or­
ganizations in the city.

Nebraska "Near Top**
The sound financial condition of
Nebraska banks puts them in an envi­
able position compared with that of
other states, according to J. F. Peters,
state banking director.
Mr. Peters, upon returning recently
from the national meeting of Directors
of Banking, explained that after dis­
cussing conditions with other state of­
ficials, he decided Nebraska banks
“rank near the top.”

An Intimate,
Personalized
Correspondent
Bank Service
Based on a Policy
of Cooperation
—N ot Competition

E ffe c tiv e

r i> - i> r d in a th m

of all departments assures rapid, efficient han­
dling of every type of banking transaction. You
are invited to use any or all of our facilities.

City Natio n al B ank
A .M 1 T R U S T C O M P A N Y o f C h ic a g o

20 8

SOUTH

LA S A L L E

STREET

(M EM BER FEDERAL DEPOSIT INSURANCE CORP.)

Under the direction o f officials
with years o f service in this field,
assuring a knowledge o f require­
ments and valuable assistance.

CT&e

Riblic National
B A N K

A N D

COMPANY

TR U S T

OF NEW YORK

E S T A B L I S H E D

1908

Main Office : 37 Broad Street
Member: New York Clearing House
Association, Federal Deposit Insurance
Corporation

N o r t h w e s t e r n Ban ker, N o v e m b e r ,


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Federal Reserve Bank of St. Louis

1946

I

Nebraska News

F irst T ru st

59

The officers are: George W. Holmes,
O/nms O f fires
president; S. C. Waugh, executive vice
president; Bennett S. Martin, Merle C.
Rathburn and John C. Whitten, vice
presidents; C. E. Hinds, treasurer; O.
F. Schlaebitz, secretary-treasurer, and
Milton F. Barlow, assistant secretary.

BETTER
THAN

RUBBER
BANDS

ON HAND TO RECEIVE CONGRATULATIONS when the First Trust Com­
pany o f Lincoln opened its new offices recently were S. C. Waugh, executive vice
president; George Holmes, president, who is also president, the First National
Bank in Lincoln, and Bennett S. Martin, vice president.

made of
50-lb. Brown Kraft

VtflU NOT DETERIORATE
Banks everywhere use these Bands
for packaging currency, deposit tickets,

N JUNE 29, 1911, a dividend of
An open house was held for the cus­
checks, etc. Much better than rubber
$50,000 was declared by The tomers and friends of the organization
bands as they will not break nor de­
First National Bank of Lincoln with
and during the day and evening 1,500
teriorate with age. Size of bands, 10
which to organize The First Trust people were taken through the new
in. x % in. Made of 50-lb. Brown Kraft.
Company of Lincoln, Nebraska.
offices. During the Nebraska Bankers
Ends gummed with pure tapioca dextrine.
At that time the insurance agency Convention over 200 bankers and their
Packed 1000 to a box.
belonging to George W. Holmes was wives visited the new quarters.
purchased and Mr. Holmes became
The First Trust Company activities
FREE SAM PLES
president of The First Trust Company. cover many fields, including trust de­
W rit e To day to Dept. G
After some thirty-five years he is still partment, investment department, in­
llte C. L. DOWNEY
the active head of The First Trust surance department, city real estate
H A N N IB A L , M IS S O U R I
Company of Lincoln, as well as presi­ department, mortgage department and
'Wo'UdA. JlaAyeAt Mj/Xi.. Coi*t '¡iJ'uipji&U.
dent of The First National Bank.
farm management department.
The capital at the present time of
The First Trust Company is $400,000,
surplus $200,000, and over $200,000 un­
divided profits, as of June 29, 1946.
For over thirty-five years the Trust
Company occupied space in the First
We enjoyed seeing you
National Bank Building, occupying the
entire basement and having offices on
at the
the second floor, as well as taking over
other space in the building. With the
increased activity in The First Trust
Nebraska Bankers
Company it was found that larger and
more modern quarters were needed
Convention
and the Trust Company has recently
moved to their new office on the second
floor of the Trust Building at 10th and
O Streets.
The Trust Company, in their new
quarters, have approximately 10,000
square feet of office space.

O

C ontinental N ational

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.

B ank
°r

LIN C O LN

Member Federal Deposit Insurance Corporation

OMAHA


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1946

60

MORE P O P U L A R E V E R Y DAY W I T H
MORE AND MORE CO R R E S P O N D E N T S

FASTER SERVICE...
NO DELAY W IT H T R A N SIT ITEMS
It's a fact! The number of our correspondent banks is greater
today than ever before. More and more of our correspondents
are taking ad van tage of our continuous 24-hour transit service.
Night and day transit service sav es time . . . there's no delay.
Items are received, processed and sent out the sam e night.
Use our 24-hour transit service the next time business dem ands
speed.
Take ad van tage of our complete correspondent
facilities.
A L V IN E. J O H N S O N , P r e s i d e n t

LIVE STOCK NATIONAL BANK
O M A H A , NEBRASKA
Member F ederal
Northwestern

Banker,


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Federal Reserve Bank of St. Louis

N ovem ber,

1946

D ep osi t

I n su ra n c e

Co rp o ratio n

61
Davenport; Vice Chairman, Robert M.
Baird, trust officer, State Savings
Bank, Council Bluffs; Vice Chairman,
Clyde H. Doolittle, vice president and
trust officer, Iowa-Des Moines National
Bank and Trust Company, Des Moines.
U. S. Savings Bonds—Chairman, G.
M. Barnett, president, Guthrie County
State Bank, Guthrie Center; Vice
Chairman, B. D. Helscher, president,
Keokuk County State Bank, Sigour­
ney.

I o w a

NEWS
f

W . H . B REN TO N
Presiden t
Des Moines

K rön t ou

FR A N K W A R N E R
S e c re ta ry
Des Moines

A /i/toin ts

Council Bluffs Promotions

H. BRENTON, president of the Edmonds, executive vice president,
Iowa Bankers Association, and Central State Bank, Muscatine; Vice
president of the Brenton State Bank,
Chairman, George J. Schaller, chair­
Dallas Center, Iowa, has announced man of board, Citizens First National
the full roster of his committees. The Bank, Storm Lake.
Insurance—Chairman, R. A. Sweet,
chairmen and vice chairmen of those
vice president and cashier, Story
committees are:
Agricultural—Chairman, K. J. Mc­ County State Bank, Story City; Vice
Donald, president, Iowa Trust & Sav­ Chairman, C. E. Baylor, president,
First Trust and Union Savings Bank,
ings Bank, Estherville.
Agricultural Credit School Advisory Sigourney.
Installment Loan and Consumer
—Chairman, Warren Garst, cashier,
Credit—Chairman, Robert W. Turner,
Home State Bank, Jefferson.
Auditing—Chairman, H. S. Lekwa, president, City National Bank, Coun­
vice president and cashier, Ackley cil Bluffs; Vice Chairman, W. Palmer
Wilson, president, Oelwein S t a t e
State Bank, Ackley.
Banking Analysis—Chairman, F. C. Bank, Oelwein.
Legislative (State)—Chairman, S. R.
Moeller, president, Fort Dodge Nation­
al Bank, Fort Dodge; Vice Chairman, Torgeson, vice president, Farmers
Lee A. Holland, vice president, Wash­ and Merchants State Bank, Lake Mills;
Vice Chairman, A. T. Donhowe, vice
ington State Bank, Washington.
Bank Taxation—Chairman, V. P. president, Central National Bank and
Cullen, executive vice president, Na­ Trust Company, Des Moines.
“Post-AVar” Small Business Credit—
tional Bank of Burlington, Burlington;
Vice Chairman, Thomas Farrell, cash­ Chairman, H. L. Horton, president,
Iowa-Des Moines National Bank and
ier, First National Bank, Iowa City.
“Destruction List” of Bank Forms— Trust Company, Des Moines; Vice
Chairman, F. C. Atkins, vice president Chairman, C. E. Watts, president,
Commercial State Bank, Pocahontas.
and cashier, Bankers Trust Company,
Des Moines; Vice Chairman, E. H.
Public Relations and Educational—
Spetman, vice president and trust of­ Chairman, E. F. Buckley, president,
ficer, Council Bluffs Savings Bank.
Central National Bank and Trust Com­
“ Service for War Veterans Under pany, Des Moines; Vice Chairman, J.
G. I. Bill”—Chairman, M. C. Eidsmoe, H. Peterman, chairman of board, Page
president, AVoodbury County Savings County State Bank, Clarinda; Vice
Bank, Sioux City; vice chairman, B. F. Chairman, R. J. Galloway, vice presi­
Kauffman, president, Bankers Trust dent, Clear Lake Bank and Trust Com­
Company, Des Moines.
pany, Clear Lake.
Federal Legislative—C h a i r m a n,
Time Lock—Chairman, E. S. KierRalph H. Miller, president, Iowa State nan, cashier, Alton Savings Bank,
Bank, Algona; Vice Chairman, Ben S. Alton.
Summerwill, president, Iowa State
Trust—Chairman, F. A. Johnson,
Bank and Trust Company, Iowa City. vice president, cashier and trust of­
Federal Reserve—Chairman, C. A. ficer, First Trust and Savings Bank,

W

Appointment of three new officers
and promotion of three others have
been announced by the hoard of direc­
tors of the Council Bluffs Savings
Bank.
Named to assistant cashier positions
were Alvin C. Anderson, Lester H.
Haas and James B. Gronstal.
E. H. Spetman, Sr., is now vice presi­
dent and cashier, instead of vice presi­
dent and trust officer. Fred Radtke
was promoted from assistant to vice
president, and Laverne Tollinger, from
assistant to trust officer.
Other officers of the bank are B. A.
Gronstal, president; John M. Jurgens,
vice president; Wesly M. Grote, assist­
ant cashier, and Paul Gronstal, auditor.

New Mt. Ayr Cashier
Grant A. Shifflett, a veteran in bank­
ing business and a resident of Ringgold county for thirty years, assumed
his duties last month as cashier of the
Security State Bank in Mt. Ayr, Iowa,
according to announcement from Mil­
ler Christiansen.
Before World War I Mr. Shifflett
was employed by the Citizens State
Bank, Earlham; then he became asso­
ciated with J. E. Fierce in the opera­
tion of the Tingley State Savings Bank
for five years; spent five years in the
First State Bank of Diagonal, then as­
sisted for about a year in the Tingley
bank again.

Fort Madison Totals
The Fort Madison Savings Bank of
Fort Madison, Iowa, in its recent state­
ment of condition, reports total de­
posits of $9,307,917, and total capital
accounts of $433,788. The bank’s loans
stand at $533,961.

D i d you k n o w that our Cash Letter Policy not only gives protection
but enables you to cut operating expenses substantially?
Ask us for details. You will not obligate yourself.

i

Scarborough & Company
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FIRST N ATIO N AL B AN K B LD G . • CH ICAGO

3 , ILL. • STA TE 4 3 2 5

to B a n k s
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1946

62

Iowa News

Buy Randolph Bank Stock
J. S. Zdychnec, cashier, and Roy
Longinaker, director, of the Randolph
State Bank of Randolph, Iowa, have
purchased all of the stock held by J.
W. Kruse, former cashier who now
lives in Pasadena, California. Mr.
Kruse was cashier until 1928 when he
moved to the west coast.

Two Bank Offices
Certificates for establishment of two
bank offices in Iowa were issued last
month by N. P. Black, superintendent
of the department of banking in Iowa.
They were issued to the Peoples Sav­
ings Bank at Cedar Rapids for an

office at Center Point, and the Jackson
State Savings Bank at Maquoketa for
an office at Bernard. The Bernard of­
fice was expected to open November
5th.

Return From Vacation
Mr. and Mrs. J. E. Henson and their
daughter returned last month from a
vacation trip through the South Da­
kota Black Hills, Yellowstone Park,
southern Wyoming, Denver, Colorado
Springs, and central Nebraska. Mr.
Henson is cashier of the Louisa Coun­
ty National Bank, Columbus Junction,
Iowa. He reports that although some
crops were not up to par in some

Diversified
Sioux City is a great farming, livestock,
wholesale and manufacturing center. Your
correspondent needs here are therefore highly
diversified.
The officers of this bank are closely in touch
with all these lines of business. Our experi­
ence is equally diversified. Let the First
National Bank serve you in Sioux City.

places, the irrigated country was doing
very well.

Ollie Office Gains
Deposits in the Ollie, Iowa, office of
the Hayesville Savings Bank of Hayesville have reached $125,000 during the
first six months of operation. The of­
fice was opened last March and is
under the managership of Leo Power.
Prior to the opening of this office, the
town of Ollie had been without a bank
for 25 years.

Purchase Mondamin Bank
George O. Unruh and James Unruh
have purchased the controlling inter­
est in the Mondamin Savings Bank in
Mondamin, Iowa, from the heirs of
the M. T. McEvoy, Sr., estate. Mr.
McEvoy, who died recently, was presi­
dent of the bank for 43 years.
George Unruh and his son James
were fomerly in the banking business
in Eagle, Nebraska, and left there re­
cently after liquidating the Bank of
Eagle.

To School in Missouri
John S. Zdychnec, son of J. S. Zdych­
nec, cashier of the Randolph State
Bank, Randolph, Iowa, has enrolled as
a cadet in the Wentworth Military
Academy and Junior College at Lex­
ington, Missouri. He graduated from
the Randolph High School last spring.

A. G. Sam, President
Fritz Fritzson, Vice Pres, and Cashier
E. A. Johnson, Assistant Cashier
J. T. Grant, Vice President
H. H. Strifert, Assistant Cashier
J. R. Graning, Assistant Cashier
R. E. Gleeson, Assistant Cashier
W. F. Cook, Auditor
M EM BER FED ER A L R E SER V E SY ST EM
M EM BER FED ER A L D EP O SIT IN SU R A N C E C O R PO R A TIO N

IOW A BA N K S boast of two Dale
Smiths. They are shown above as
they met in Des Moines recently.
Just to keep the records straight, the
one on the left is Dale C. Smith,
assistant cashier, Central National
Bank & Trust Company, Des Moines,
and the man on the right is Dale H.
Smith, cashier, Tipton State Bank,
Tipton.

* * * * /// S/OUX C/ftf ★ * *

Y O U R STATE B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
TIM E LO C K EXPERTS

F. E. DAVENPORT & CO.
OM AHA

N orth w estern

Banker,


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

November,

1946

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

CORRESPONDENT
SERVICE...............
... offering the utmost
in Helpful Cooperation
on your Des Moines
transactions

WALNUT AT FOURTH, DES MOINES
Frederick M. Morrison, President
Winfield W. Scott, Senior Vice President
J. R. Astley, Vice President
Edward P. Kautzky, Vice President
Roy E. Huber, Vice President
F. M. Thompson, Cashier
Ray L. Thompson, Asst. Vice President
Carl W. Altman, Asst. Cashier
George W. Gill, Asst. Cashier

M e m b e r

F e d e r a l

D e p o s i t

I n s u r a n c e

C o r p o r a t i o n

N orthw estern

Ban ke r, N o v e m b e r ,

1946

64

Iowa News

To Grand Mound

MERCHANTS
MUTUAL

BONDING
COMPANY
Incorporated 1933

Home Office
SOUTHERN SURETY BUILDING
Des M oines, Iowa

•
This is Iowa’s oldest surety company.
A

progressive company with experi­

enced, conservative management.

Walter Thiele has accepted a posi­
tion as cashier with the Union Savings
Bank of Grand Mound, Iowa, and will
assume his new duties with that in­
stitution as soon as he can complete
his work with the Iowa state corpora­
tion tax department, with which he
has been connected for more than two
years.
Mr. Thiele began his banking career
in the First Trust & Savings Bank of
Wheatland, serving as assistant cash­
ier and cashier for 25 years, and fol­
lowing that was cashier of the Keokuk
Savings Bank for four years. His ex­
perience in banking and tax matters
make him a valuable asset to the
Grand Mound institution.
He succeeds Martin T. Jensen who
for the past 13 years has been in the
Union Savings Bank as cashier.

fifty hank agents in Iowa.

Fifteenth Anniversary

To he the exclusive representative of

The fifteenth anniversary of the or­
ganization and opening of the Guthrie
County State Bank of Guthrie Center,
Iowa, under its present management
was observed last month.
In 1931, with G. M. Barnett as its
president, the new organization took
over the building which had previous­
ly housed the Peoples State Bank and

Write to
E. II. W A R N E R
Secretary and Manager

C G Harshberger
C. C. Harshberger, 75, retired Onawa
banker, died last month after suffering
a heart attack. He was born in Wood­
bine. He was in the banking business
in Cherokee and Monona counties.
Surviving are his wife, a son and two
daughters.

Named President Again

W e are proud o f our hundred and

this company is an asset to your bank.

has continued since in the same loca­
tion.
The present board is composed of
C. H. Hinton, R. C. Norman, W. C. Bur­
ton, M. C. Barnett, PI. E. Ellett and
G. M. Barnett. The latter is president,
R. C. Norman, vice president; M. C.
Barnett, cashier. Some years ago the
bank opened an office at Panora which
has given service to that community
under the management of J. I. Vandevanter.

At a recent meeting of the board of
directors, G. P. McGraw, veteran Pier­
son, Iowa, merchant, was elected the
new president of the Farmers Savings
Bank to replace Mrs. Alice Calta, who
moved to Platte, South Dakota. The
office is not a new position for Mr. Mc­
Graw, as he has held the same appoint­
ment previously and has also been a
director for many years.

1000 Bankers Must Be Right!
THE WELL KNOWN

DOANE ORGANIZATION
Founded 1919

Now serves over 1000 bankers who receive our re
leases twice a month, as regular subscribers to:

DOANE AGRICULTURAL DIGEST
Cost, $ 2 0 first year— with loose-leaf binder— Renewals, $ 1 0 per year thereafter.

There is no other agricultural information service just like it.
For sample releases and further information write to

Doane Agricultural Service, Inc.
B o x 6 03, 206 P ly m o u th B ld g.

You Should Have It!
N orthw estern

Banke r,


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Federal Reserve Bank of St. Louis

November,

1946

Des Moines 9 , Iowa
H om e

O ffice— S t. L o u is

65

Guaranty Trust Company of New York
MA1IN OFFICE
140 Broadway

FIFTH AVE. OFFICE
Fifth Ave. at 44th St.

MADISON AVE. OFFICE
Madison Ave. at 60th St.

ROCKEFELLER CENTER OFFICE
40 R ockefeller Plaza
LONDON • PARIS • BRUSSELS

Condensed Statement of Condition, September 30, 1946
RESOURCES
Cash on Hand, in Federal Reserve Bank, and Due from Banks and Bankers . . . .
U. S. Government O b l i g a t i o n s ..................................................................
........................
Loans and Bills P u r c h a s e d ............................................................................................................
Public S e c u r i t ie s .................................................................................................$
92,888,592.58
Stock o f the Federal Reserve B a n k ......................................................
7,800,000.00
Other Securities and O b lig a tio n s ............................................................
10,885,966.47
Credits Granted on A c c e p t a n c e s ...........................................................
4,825,586.82
Accrued Interest ami Accounts R e c e iv a b le ..........................................
11,151,112.46
Real Estate Bonds and M o r t g a g e s ......................................................
1,424,945.21
Bank B u i l d i n g s ....................................................................................................................................
Other Real E s t a t e ..............................................................................................................................
Total R e s o u r c e s .........................................
LIABILITIES
C a p i t a l .................................................................................................................. $
90,000,000.00
Surplus F u n d ................................................................................................
170,000,000.00
Undivided P r o fits ..........................................................................................
59,634,595.29
Total Capital F u nds............................................................................. ............................. . $
General Contingency R e s e r v e ............................................................................................................
D e p o s i t s .............................................................................................................$2,743,520,455.52
Treasurer’ s Checks O u t s t a n d in g ............................................................
29,744,964.1 I
Total D eposits...................................................................................
A c c e p t a n c e s ...................................................................................................... $
11,605,911.28
Less: Own Acceptances Held for I n v e s t m e n t ....................................
6,780,3 24.46
$
4,825,586.82
Liability as Endorser on Acceptances and Foreign Bills . . . .
221,629.00
Dividend Payable O ctober 1, 1946
2,700,000.00
Items in Transit with Foreign Branches and Net D ifference in
Balances between Various Offices Due to Different Statement
Date o f Foreign Branches ..................................................................
630,550.64
Accounts Payable, Reserve for Expenses, Taxes, etc........................
24,999,838.11

$

541,736,604.46
1,768,219,333.89
716,219,359.56

128,976,203.54
9.055,919.19
142,385.33
$3,164,349,805.97

319,634,595.29
38,072,186.48

2,773,265,419.63

33 ,377 ,604.57
$3 ,164,349,805.97

Total L ia b ilitie s ......................................................

Securities carried at $373,782,731.29 ill the above Statement are pleilgcd to qualify lor fiduciary powers, to secure public moneys
as required by law. and for other purposes.
This Statement includes the resources amt liabilities of the English. French, and Belgian Branches as ol September 26. 1916.
E U G E N E W . ST E T S O N
Chairman o f the Board

J. L U T H E R C L E V E L A N D
President

W. PA LE N CO N W AY
Chairman o f the Executive Com m ittee
W IL L IA M L. K L E T TZ
Vice-President

DIRECTORS
G E O R G E G. A L L E N
D irector, British Am erican T o b a cco C om pany, Lim ited,
and President. D uke Power C om pany
W IL L I A M B. B E L L
President, American
Cyanam id C om pany
F. W . C H A R S K E
Chairman, Executive
C om m ittee, U nion Pacific Railroad Com pany
J. L U T H E R C L E V E L A N D
President
W. P A L E N C O N W A Y

Chairm an o f the
Executive Com m ittee

C H A R L E S P. C O O P E R
E xecu tive Vice-President,
American Telephone & Telegraph Com pany
W T N T H R O P M . C R A N E , JR .
President,
Crane & C o., Inc., D alton, Mass.
STUART M. CROCKER
President,
Colum bia Gas & Electric Corporation


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Federal Reserve Bank of St. Louis

JOHN W . D A V IS

of D avis Polk Wardwell
Sunderland & Kiendl

C H A R L E S E. D U N L A P
President,
Berwind-Vi bite Coal Mining Company
GANO DUNN

President, Th e J. G.
% bite Engineering Corporation

W A L T E R S. F R A N K L IN
Vice-President,
The Pennsylv ania Railroad Com pany
L E W IS G A W T R Y

C H A R L E S S. M U N S O N
President, Air
Reduction Com pany. Inc.
Retired

W IL L IA M C. P O T T E R
G E O R G E E. R O O S E V E L T o f Roo.
E U G E N E W. S T E T S O N

celt N Son

Chairman
o f the Board

R O B E R T T. STEVENS
Chairman o f the
Board, J. P. Stevens Si Com pany, Inc.

JO H N A. H A R T F O R D
President,
T he Great A tlantic & Pacific Tea Com pany

T H O M A S J. W A T S O N
President,
International Business M achines Corporation

C O R N E L IU S F K E L L E Y Chairman o f the
B oard, Anaconda Copper M ining Com pany

C H A R L E S E. W IL S O N

M O R R IS W . K E L L O G G
Chairman o f the
Board, Th e M . W . K ellogg Com pany

R O B E R T W W OODRUFF
Chairm an,
E xecutive Com m ittee, Th e C oca-C ola C om pany

President, General
Electric Com pany

Member Federal Deposit Insurance Corporation

Northw estern

Banke r, N o v e m b e r ,

1946

66

Iowa News

On School Board
L. D. Krueger, vice president of the
Central State Bank of Muscatine,
Iowa, has been named to fill the unex­
pired term of the late J. Andrew
Davidson as a director of the Musca­
tine Independent School District.
His appointment was the result of
a special meeting of the school board.

Hold Farm Meetings
The Agricultural Committee of the
Iowa Bankers Association sponsored
ten one-day schools throughout the
state last month on “ Soil Management
and Land Conservation.” Chairman

Warren Garst, cashier, Home State
Bank, Jefferson, and Vice Chairman
K. J. McDonald, president, Iowa Trust
and Savings Bank, Estherville, were in
charge of arrangements for the meet­
ings.
The meetings were held on a farm
near town in the morning, and after­
noon sessions were held in a hotel in
town. Towns where these meetings
were held and the local banker in
charge of arrangements were:
Denison—T. C. Aarestad, cashier,
First National Bank; Tama—R. W.
Adair, vice president, Tama State
Bank; Cherokee—George E. Wilson,

president, Cherokee State Bank; Fairfield—Ralph Eastburn, president, Iowa
State Bank & Trust Company; Fort
Dodge—A. A. Gerken, assistant cash­
ier, The State Bank; Tipton—J. W.
Edge, president, Tipton State Bank;
Red Oak—George W. Atherholt, presi­
dent, Montgomery County National
Bank; West Union—C. W. Grimes,
cashier, First National Bank; Chariton
—M. J. Grogan, executive vice presi­
dent and cashier, National Bank and
Trust Company, and Mason City—Roy
B. Johnson, assistant vice president,
First National Bank.
Demonstrations of soil conservation
practices were held on each farm and
practical lectures provided by county
agricultural agents.

Resigns As Cashier
Harold W. Bell has resigned as as­
sistant cashier at the First Trust and
Savings Bank of Alta, Iowa. On No­
vember 1st he took over his new duties
as accountant in the Ralston Purina
Company at Iowa Falls, Iowa.

Announces Retirement

W elcom e a d vice to h o lid a y tra velers l

After serving as cashier of the Ex­
change State Bank of Collins, Iowa,
since December, 1915, J. R. Witmer
announces that he will retire Janu­
ary first.
His successor, who took over the
cashier’s duties November 1st, is H.
O. Sanderson of Diagonal, Iowa, who
was cashier of the First State Bank of
Diagonal. He has been in the employ
of the same bank management for
more than 20 years, having been con­
nected with the First National at Shan­
non City before going to Diagonal.

A great many people w ho are planning to spend the
holidays "w ith the folks” or elsewhere, w ill welcome

C. R. Sheaffer Resigns

the suggestion to carry Am erican Express Travelers

At a meeting of the board of direc­
tors of the Fort Madison Savings Bank
in Fort Madison, Iowa, last month,
George A. Beck, vice president and
comptroller of the W. A. Sheaffer Pen
Company, was elected a director to fill
the vacancy created by the resignation
of Craig R. Sheaffer.
Mr. Sheaffer’s resignation was ac­
cepted by the board at the meeting.

Cheques on their trip. They know that these cheques provide
complete protection against theft and loss.
Frequently, bankers secure the names o f prospective holidaytravelers from local news items. O r clients may drop a hint about
their plans when they call at the bank—thus m aking it easy to
suggest the purchase o f these safe, convenient cheques.
Advertising o f Am erican Express Travelers Cheques is con­
stantly at w ork in magazines and newspapers. Newspaper mats
are also available to banks for their ow n advertising. A folder
illustrating these mats w ill be sent on request, together with any
information you m ay need. W rite W . H . Stetser, V ice President,
American Express Com pany, 65 Broadway, N e w York 6, N . Y .

A merican Express
T r a v e le r s C h eq u es
________________ _____ ___________________
N o r t h w e s t e r n Ban ke r, N o v e m b e r ,


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

Ì9 4 6

Elected Director
The board of directors of The State
Bank of Fort Dodge, Iowa, at a regular
meeting recently, appointed R. G. An­
derson of Fort Dodge to fill the va­
cancy on the board occasioned by the
resignation of J. Floyd Rich.
Mr. Rich retired recently after long
service with the bank.
Mr. Anderson is president of the
Iowa Farms Company, which manages
a large number of farms in northwest
Iowa.

Iowa News

George Messenger
George H. Messenger, former Des
Moines banker and first Iowa state
banking superintendent, died at Kan­
sas City, Missouri, last month.
Mr. Messenger was state superin­
tendent of banking from 1917 to 1920.
He was president of the former Me­
chanics Savings Bank in Des Moines
from January, 1923, until the institu­
tion closed in December, 1925. At one
time he also was president of a Lin­
den, Iowa, bank.

M. C. Eidsmoe, president of Wood­
bury County Savings Bank, was re­
cently appointed chairman of the Com­
mittee on Service for War Veterans
under G. I. Bill, by W . H. Brenton,

T I M E

67

president of Iowa Bankers Associa­
tion.
Lawrence Sloan, president of First
Federal Savings and Loan Association,

O U T

New Banker in Family
Mrs. Mildred I. Newman, 33 year old
cashier of the Iowa State Bank, Stockport, Iowa, is a proud new mother,
having given birth to a 9% pound baby
boy, Sunday, October 27th. The baby
has been named Ned D. Newman.
Mrs. Newman has been cashier of
the bank for 14 years.

S io u x 0 iitf X v ir s

"TIME OUT" is necessary in a football
game, but it does prolong the game . . .
and for taking too much "time out" a team
is penalized.
A certain amount of time is necessary

r HEDRICK J. HANNAH, loan rep-

in clearing your transit items, but the less

F resentative, left the Woodbury
County Savings Bank on October 31st
to open a real estate office at Rockford,
Illinois.

"time out" required, the more profitable it
is to you . . . and for excessive "time out"
you pay a penalty.

Morningside State
Bank, slipped away from his office for
a few days of hunting and fishing in
the Minnesota Lakes region. He had
no special destination in mind, and
planned to return to the bank after an
absence of about a week.
Don

Nisson,

Darlene Miller of the bookkeeping
department of Woodbury County Sav­
ings Bank was recently hospitalized
for an appendectomy. Her recovery
was rapid and satisfactory, enabling
her to return to the bank after only a
brief absence.
Frank H. Abel, assistant cashier at

the Security National Bank, and Lu­
cille Monfort, head bookkeeper, were
married October 10th. Following a
two weeks trip to Chicago, the happy
newlyweds will be at home in Sioux
City. Mr. Abel is also manager of the
Transit Department at the Security
National Bank.

That's where Commerce speedy 24-hour
transit service counts in your favor . . .
by saving one to three days on collections.

This feature plus direct sending of items
that is unequalled in the United States
recommends the Commerce to you.

(om mercejrust (ompa \\y
GaftitcU fyuruLi C^ceed jLO M illion ubollo'ii

K A N SA S. C IT Y 'S L A R G E S T BANK

Established 1865 IN
SU
RAN
CEE
C
O
R
A
PO
R
^APO
N

THE TOY NATIONAL BANK


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Federal Reserve Bank of St. Louis

F or Y o u r S io u x C ity Banking Connection

In t he

heart

of d o w n

t own

Sioux

City

Member F.D.I.C.
N orthw estern

Ban ke r, N o v e m b e r ,

1946

6'8

Iowa News

■i

announced that Martin E. Ramsey,
general manager of Curtis Companies,
Inc., has been chosen a director of the
association. The choice was made at
a meeting of the board of directors
held recently in First Federal’s new
offices at 511 Pierce Street.
Malcolm Erickson has returned to

the Live Stock National Bank as a
teller after two years in the Medical
Corps.
A1 Ferris, who also was with the
armed forces, has returned to the bank
as transit clerk.
Marjorie Smith has returned to her
position as teller following her war­
time absence as a marine.
Stanley Evans, who served as a
captain in the U. S. Army Finance Sec­
tion at Bremerhaven and Frankfurt,
Germany, has returned to the Live
Stock National Bank.

C O N D E N S E D

FIRST

Unusual activity in every depart­
ment of the Live Stock Bank has re­
sulted from the extra heavy movement
of live stock to and through the Sioux
City market since meat controls were
lifted. October 17th saw the longest
line of stock trucks waiting to unload
ever to await their turn at unloading
chutes.
ih > s

M

A i ’t c s

The Bankers Trust Company has
announced plans for expanding its
quarters to include the room directly
west of the bank and enlargement of
several other departments as soon as
construction materials are available.
B. F. Kauffman, president, in an­
nouncing the proposed remodeling
program, said the size of the state­
ment department will be more than
doubled and six more tellers’ cages

S T A T E M E N T

NATIONAL
IN

o i n e s

BANK

ST. L O U I S

At the Close of Business, September 30, 1946

RESOURCES
Cash and Due from Banks
U. S. Government Securities
Loans and Discounts
Other Bonds and Stocks
Stock in Federal Reserve Bank
Banking House, Improvements, Furniture
and Fixtures
Other Real Estate Owned
Customers’ Liability a /c Letters o f Credit,
Acceptances, etc.
Accrued Interest Receivable
Overdrafts
Other Resources

$111,481,569.55
200,038,112.11
132,550,092.56
7,571,216.98
531,000.00
340,178.30
941,002.00
1,812,929.95
936,183.12
8,166.33
_______ 4,040.05
$456,214,490.95

LI ABI LI TI ES
200, 000.00
Capital Stock
$
500.000. 00
Surplus
498,583.-49
Undivided Profits
500.000. 00
Reserve for Contingencies
240.000. 00
Dividend Declared, Payable November 30, 1946
970,547.11
Reserve for Taxes, Interest, etc.
182,328.03
Unearned Discount
936,415.95
Liability a /c Letters of Credit, Acceptances, etc.
14,314.96
Other Liabilities
Demand Deposits
$333,554,029.66
Time Deposits
57,946,556.04
U. S. Government Deposits
33,671,715.71
425,172,301.41
Total Deposits
$456,214,490.95

B roa d w a y ' L o cu st

*

O liv e

M em b e r F ed era l D e p o sit In su ra n ce C orporation

N orthw estern

Ban ke r, N o v e m b e r ,


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

1946

will be added on the main floor. Oc­
cupying the new office space provided
by the room to the west will be the
personal loan department. To the
rear of this will be the trust depart­
ment.
The flurry of fall conventions and
meetings has kept Des Moines bankers
on the move for two months. Travel­
ing to the Financial Advertisers Asso­
ciation Convention in San Francisco
last month were Frank Warden, vice
president, Central National Bank &
Trust Company, and Harold Klein,
vice president, Iowa-Des Moines Na­
tional Bank & Trust Company. Mr.
Warden was re-elected to the senior
advisory council.
Lehman Plummer, vice president,
Central National Bank, visited in Cin­
cinnati and Cleveland recently. In
the first city he appeared before the
Ohio Valley group meeting of the
American Institute of Banking, where
he spoke on “Future Trends of Con­
sumer Credit.” At Cleveland he ad­
dressed the national convention of the
National Frozen Food Locker Asso­
ciation, discussing the future of the
frozen food industry.

\

1

John de Jong, vice president, IowaDes Moines National Bank, has trav­
eled farther this fall than any other
Des Moines banker. He spent six weeks
in Holland visiting relatives, making
the round trip by airliner. Since his
return to Des Moines a few weeks ago
he has made 13 public appearances
addressing groups ranging in size
from 50 to 500 on the sights he saw
in his native Holland and the business
conditions there. He has also made
one radio appearance, to say nothing
of the many, many visits with friends
about his reunion with brothers and
sisters he had not seen for years.

Loans by Des Moines banks have
shown a 40 per cent increase during
the last year.
The loan total as of the latest bank
call, September 30th, was $89,203,047,
as compared to $49,539,760 in the fall
of 1945.
Total resources dropped off $8,681,383 from the all-time peak of $303,987,006, and stood at $295,305,623. Like­
wise, deposits fell from $290,514,290 to
$278,471,057.
United States bond holdings were
the only other item that showed an
increase. The present figure is $143,150,581, as compared to $137,448,532 a
year ago.
Committee appointments announced
recently by C. W. Bailey, president of
the American Bankers Association, in­
clude the appointment to two com­
mittees of Herbert L. Horton, presi-

5

Iowa News
dent, lowa-Des Moines National Bank,
and the naming of Harold Klein, vice
president of the same bank, as a mem­
ber of the A.B.A. public relations
council.
Mr. Horton has been appointed a
member of the board of trustees of
the Educational Foundation in Eco­
nomics of the A.B.A., and reappointed
a member of the subcommittee on
Federal Deposit Insurance study of
the A.B.A.
Recently, Mr. Horton was elected
chairman of the board of trustees of
the Banking Research Fund of the
Association of Reserve City Bankers.

FAA CONVENTION
(Continued from page 16)
all of these things, including the
wives of most of the delegates. Every
financial institution who sends its ad­
vertising executive to an FAA conven­
tion can be proud of the way these
folks come to work and learn.
Among the
enjoyable
evening
parties attended by FAA’ers was one
at which officers of the Bank of Amer­
ica were hosts to several hundred dele­
gates. Guests met first in the Bank of
America building and then went to the
adjoining San Francisco Chamber of
Commerce building for a social hour
and a delightful dinner. Another din­
ner party was staged by the Wells

T he
N ew Y ork T rust
Company

Fargo Bank & Union Trust Company.
Attendance at the “early birds”
party, staged the evening before the
official opening of the convention, was
curtailed by about two hundred par­
ticipants when the special train out of
Chicago, which carried many of the
New York delegates and those from
points west of Chicago, was delayed
first in Omaha because of worn equipment, and then several hours in the
wilds of Wyoming on account of a
freight wreck just ahead. But nobody
was down-hearted and finally arrived
safely.
When Harold Klein, vice president
of the lowa-Des Moines National Bank,
Des Moines, boarded the special train,
he brought with him 200 ears of prize
Iowa corn, and an ear was given to all
the FAA passengers, something new
for those from the far East and South.

69

FAA members from Los Angeles
had a chance to display their brand of
Southern California hospitality when
it was arranged that the special train
would stop in L. A. for two days fol­
lowing the regular meeting in San
Francisco, with sight-seeing trips and
entertainment of various kinds in
store for the conventioneers. And
then on its eastward journey, the
special was to make a side trip to the
Grand Canyon.
Where the Financial Advertisers
will hold their convention in 1947 has
not been decided. Bermuda was sug­
gested, but the executive committee
and directors will name the place.
Wherever that place is and whoever
the hosts are, the bankers of San
Francisco have set an entertainment
and hospitality record that will be a
hard one to equal. # #

VISIT THE “ I N T E R N A T I O N A L ”
America’s Greatest Live Stock Exposition
November 30th to December 7th
Bankers with important interests in the agricultural field
will enjoy this advance showing of "styles" in live
stock, because these styles will soon be translated into
practical values in the farm herds of every rural com­
munity. In line with a long established custom, the
Drovers' staff is making special plans to welcome
bankers and their friends during this colorful week.

C O M M E R C IA L
B A N K IN G
D O M E S T IC A N D
F O R E IG N

★

100 B R O A D W A Y
M ADISON AVENUE
A N D 40TH STREET

TEN
ROCKEFELLER
PLAZA

★

II It i) VE 11S NATIONAL HANK
liftn v tllS TRU ST vS.- SAVINGS BANK
MEMBERS, FEDERAL

DEPOSIT

INSURANCE

CORPORATION

Member o f Federal Deposit Insurance Corporation


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Federal Reserve Bank of St. Louis

N orthw estern

Ba nke r, N o v e m b e r ,

1946

70

Iowa News

ing agency of Harry J. Lazarus & Com­
pany, with offices at 430 N. Michigan
Avenue. Simultaneously with this an­
nouncement, C. F. Kuehnle, president
of Central National, in announcing Mr.
Lazarus’ resignation, stated that the
new agency had been appointed adver­
tising counsel for Central National
Bank and its correspondent banks.
Mr. Lazarus, who left the advertis­
ing field in 1941 to join Central Na­
tional as director of public relations,
rose to the position of assistant to the
president, and at the age of 32 was
elected vice president, one of the
youngest senior officers of a national
bank in this country.
As an officer of the Central National

Investment Bankers Meet
The 1946 annual convention of the
Investment Bankers Association will
be held in Palm Beach, Florida, be­
ginning on Sunday, December 1st, and
ending on Friday, December 6th. The
Palm Beach Biltmore will be the head­
quarters hotel.
The convention program will pro­
vide for convention sessions or open
meetings of the board of governors on
each morning from Monday through
Friday.

Starts Financial Agency
Harry J. Lazarus, vice president of
Central National Bank in Chicago, an­
nounces the formation of the advertis­

The First N a tio n a l B a n k
of C h ic a g o
Statement of Condition September 30, 1946
A S S ETS
Cash and D ue from Banks, .

.

.

.

.

.$

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

United States O bligations—Direct and fully Guaranteed,
U npledged,

.

.

.

.

$ 7 3 0 ,8 5 8 ,9 7 5 .9 1

Pledged—To Secure Public Deposits and

Deposits Subject to Federal Court Order, 2 1 9 ,4 7 6 ,7 2 0 .0 0
.

.

Under Trust Act of Illinois, .

To Secure Trust Deposits,

.

4 1 ,8 5 1 ,1 1 0 .5 4
5 3 3 ,8 4 0 .0 0

9 9 2 ,7 2 0 ,6 4 6 .4 5

O ther Bonds and S e c u r i t i e s , ...........................................

1 0 4 ,5 4 0 ,2 4 3 .3 3

Loans and D is c o u n ts ,...............................................................

5 7 4 ,3 6 8 ,3 8 3 .3 4

Real Estate (B an k B u i l d i n g ) , ...........................................

3 ,2 7 8 ,0 6 8 .3 2

Federal Reserve Bank S t o c k , ..........................................

3 ,6 0 0 ,0 0 0 .0 0

.

1 ,7 9 5 ,1 2 2 .9 1

Interest Earned, not Collected.................................................

Customers’ Liability Account o f Acceptances,

.

5 ,6 4 5 ,0 1 1 .2 4

O ther A s s e t s , ..........................................................................

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

LIABILITIES
Capital S t o c k , ......................................................................... $
S u r p l u s , ................................................
O ther Undivided Profits,

.

.

.

.

Discount Collected, but not Earned,
Dividends Declared, but U npaid,

Demand Deposits,

.

.

.
.

Reserve for Taxes, e t c . , ................
Tim e Deposits,

.

.
.

Liability Account o f Acceptances,

.

1 ,9 4 6 ,9 1 2 .5 4
.

.

1 ,0 5 0 ,8 9 8 .6 5

.

1 ,2 0 0 ,0 0 0 .0 0

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

.

.

.

1 ,8 2 7 ,9 8 2 .5 1

.

.

. $ 3 3 4 ,9 6 1 ,7 7 0 .1 4

.

.

.

.

.

Deposits o f Public Funds,

6 0 ,0 0 0 ,0 0 0 .0 0

6 0 ,0 0 0 ,0 0 0 .0 0

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

Liabilities other than those above stated,

.

.

. __________7 1 ,2 5 8 .4 9
$ 2 ,1 1 4 ,8 4 8 ,2 5 8 .0 0

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

N o r t h w e s t e r n Ban ke r, N o v e m b e r ,


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

1946

Bank, Mr. Lazarus developed several
booklets on human relationship in­
volving bank public relations, one of
which was acclaimed country-wide for

H A R R Y J. LAZARUS
Starts Own Advertising Agency

its complete picturization of the un­
usual services performed by Central
National for its customers.
In re-entering the advertising field,
Mr. Lazarus plans to inaugurate a
special division in his agency that will
specialize in advertising, public rela­
tions and merchandising service for
banks and financial institutions, and a
division that will handle general ad­
vertising.

NEWS AND VIEWS
(Continued from page 14)
American bankers in the presidency
of the American Bankers Association.
His activity in this field was consum­
mated with a tremendously successful
convention, attended by over 5,200
bankers, in Chicago during Septem­
ber.
Crawford J. Mortensen, president
of the Nebraska State Bank of Ord,
is a pretty husky young man, and we
think we have found the reason—he
drinks four double glasses of tomato
juice each morning for breakfast just
as a starter.
William N. Mitten, president of the
Stephens National Bank of Fremont,
Nebraska, has a young son, Dave G.
Mitten, who is now a freshman at
Stanford, and is former city golf cham­
pion of his home town. It is needless
to say that he will be a member of
the Stanford golf team this winter.
Incidentally, Dad is also hitting the
ball in the banking business, with de­
posits of over $8,200,000.

71

Iowa News
Stanley Maly, who recently retired
as vice president of the First National
Bank of Lincoln, attended his 43rd
Nebraska Bankers Convention last
month and, as far as we know, holds
the record in his state.

When it comes to song leaders, Ed­
ward E. Becker, senior vice president
of the Continental National Bank of
Lincoln, is one of the best, as he dem­
onstrated at the Nebraska Bankers
Convention. After the meeting was
over, we had lunch one noon with Ed
at the University Club in Lincoln and
we were somewhat startled by the
new painting on the north wall of the
main dining room by Keith Martin,
Lincoln artist.
The painting is a farm scene which
includes 4 butterflies larger than 3
cows also shown in the picture. In
addition to this are several rows of
sunflowers which, of course, is the
official flower of Kansas. Then there
is a farm woman with a hoe but she
is holding it as if she is about to
make an 8 iron shot out of the rough.
Anyway, perhaps the picture is sup­
posed to illustrate the Latin motto
over the fireplace which says “Cultus
Animi Cum Comitate” or “ Culture of
the Mind With Companionship.”

dorsed the CIO Political Action Com­
mittee and the work it was doing.
The only national disaster we can
think of would be to have our govern­
ment dominated by Mr. Ossipov’s
Moscow controlled communists.

A. Ossipov broadcast over the Mos­
cow radio recently that, “Republican

Fred M. Staker, vice president of
the Commerce Trust Company, Kan-

CH

Founded 1824

165 Broadway, N ew Y ork
C O N D E N SE D ST A TE M E N T O F C O N D IT IO N
At the close of business, September 30, 19 4 6
ASSETS
Cash and Due from Banks____________ $231,644,595.40
U. S. Government Obligations______ 576,995,649.53
Bankers’ Acceptances and Call Loans 91,166,919.18
72,980,458.92
State and Municipal Bonds____________
63,524,478.03
Other Bonds and Investments_________
252,473,368.31
Loans and Discounts.
254,793.50
*Banking Houses
2,231,404.01
*Other Real Estate.
177,988.35
Mortgages.
4,852,111.98
Credits Granted on Acceptances.
Accrued Interest and Accounts
3,681,852.84
Receivable622,357.27
Other Assets.

Account With the Omaha National
Bank.”

$1,300,605,977.32

As Jack points out, the booklet was
designed with three things in mind:
“ 1, to tell the story of the personal
checking account, and particularly to
explain our account analysis; 2, to
personalize the bank, and 3, to better
our employe relations.”
We are sure that Jack will be glad
to send you a copy of this booklet if
you have not already seen one.

LIABILITIES
Capital StockSurplus.
Undivided Profits_____
Unallocated Reserves—

( S e a l)

H enry

H.

4,927,197.58
1,125,000.00
5,105,718.21

230,719.36
Other Liabilities --------------------------------Deposits (including Official and Certified
Checks Outstanding $27,282,461 .79) 1,180,428,699.65
$1,300,605,977.32

bernia National Bank in New Orleans,
made a trip through the middle west
visiting their friends.

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

$25,000,000.00
65,000,000.00
13,097,452.85
5,691,189.67 $108,788,642.52

Reserves for Taxes, Expenses, etc..
Dividend Payable Oct. 1, 1946.
Acceptances Outstanding $6,373,298.15
(Less own acceptances
held in portfolio)
1.267.579.94

Fred W. Ellsworth and G. W. Owen,
Jr., both vice presidents of the Hi­

Publisher.
Sw orn to and subscribed before me this 20th
day of September, 1946.

E M IC A L
BANK

T R U S T COMPANY

A. J. Rhodes, assistant cashier of the
Omaha National Bank has sent the
N o r t h w e s t e r n B a n k e r a very interest­
ing booklet, “Your Personal Checking

P U B L IS H E R ’ S S TA TE M E N T
Statement of the Ownership, Management, C ir­
culation, etc., required by the A ct of Congress of
M arch 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, Iow a, for
October, 1946.
1. Name o f P ub lish er: Clifford De Puy, Des
Moines, Iow a.
Associate Publisher, R . W . M oor­
head, Des Moines, Iow a.
Editor, H enry H.
H aynes, Des Moines, Iow a.
Associate Editor,
Ben Haller, Jr., Des Moines, Iow a.
2 . O w n er: N o r t h w e s t e r n B a n k e r C o m p a n y .
Stockholders, Clifford D e P u y.
Frances Prou ty
D e Puy, Des Moines, Iow a.
3. That the know n bondholders, m ortgagees and
other security holders ow ning or holding 1 per
cent or m ore o f total amount of bonds, mortgages
or other securities a re: N one.

domination of Congress would be a na­
tional disaster.” He also strongly en­

While in Ues Moines they were en­
tertained by Frank Warner, vice presi­
dent of the Central National Bank and
Trust Company, and it was also our
pleasure to have them as guests for
“refreshments” at our home.
The Hibernia National Bank now
has deposits of over $115,711,000.

Securities carried at $ 126,899, 131.23 in the foregoing
statement are deposited to secure public funds
and for other purposes required by law.
| | Assessed Valuation $4,063,083.00
Charter Member N ew York Clearing House Association
Member Federal Reserve System
Member Federal Deposit Insurance Corporation

Plan to use an advertising p r o g r a m o f
well worded messages created b y
W essling Services, D es M oines, I o w a

lÁJeóó/incj S ervices
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W E S S L IN G , P R E S ID E N T

H aynes,

i/1 /J o in e S

N otary Public.
(M y com m ission expires July 4, 194 8 .)


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Federal Reserve Bank of St. Louis

R

N orthw estern

9 , J lo w a

Banker, N o v e m b e r ,

1946

72

fowa News

KLIPTO

sas City, introduced us to a new culi­
nary concoction known as the “ Pinwheel Casserole,” when we had lunch
with him in the private diving room
at his bank.
You ask Fred what was in it, but
we can tell you that it had nothing to
do with the 4th of July.

LO O SE
LEA F
CO.

M A SO N C IT Y , IO W A
Bank Supplies

of the First St. Joseph Stock Yards
Bank, already has 3 grandsons, hut
last month he was honored with his
first granddaughter when Mrs. John
F. Dailey had a daughter born in the
Canal Zone in Panama. She is living
there with her husband, Captain
Dailey, who is in the Air Corps.

SAVINGS ASSOCIATION

Oldest In Des Moines
Dial 4-7119

ELMER E. MILLER
Pres, and Sec.

C O N V E N T IO N S

Joe A. Greenfield, Jr., vice president

DES MOINES BUILDING-LOAN i

210 6th Ave.

St. Joe, took us to lunch at the Ben­
ton Club. This was a few days before
the election and the prediction of a
Republican landslide was the main
subject of conversation. # #

HUBERT E. JAMES
Asst. Sec.

FOR YOUR ENJOYMENT . . .

November 7-8, Mid-Continent Trust
Conference, Chicago. Drake Hotel.
November 18-19, A.B.A. Country Bank
Commission Meeting, Mobile, Ala­
bama, Admiral Semmes Hotel.
December 2, Investment Bankers Asso­
ciation, Palm Beach, Biltmore
Hotel.
December 9-10, A.B.A. Regional Sav­
ings and Mortgage Conference,
Minneapolis, Hotel Nicollet.
December 12-13, A.B.A. Regional Sav­
ings and Mortgage Conference, In­
dianapolis.

Listen to the

Ray R. Calkins, president, and
George (Bud) Richmond, vice presi­

“ WORLD OF MUSIC”
KRNT, 1350 KC

1 to 1:30 p.m. Sundays

dent of the American National Bank,

1947

wecan

H ow

our correspondents p ro fit
fr o m foreign business
Remittances to foreign lands, letters of credit

help

January 23-24, A.B.A. Consumer Credit
Conference, St. Louis.
January 30-31, Wisconsin Mid-Winter
State Association Meeting, Mil­
waukee, Hotel Schroeder.
April 13-15, A.B.A. Spring Council
Meeting, French Lick, Indiana,
French Lick Springs Hotel.
May 19-21, 56th Annual Convention,
Illinois State Association, Chicago,
Palmer House.
June 20-21, Annual Convention, South
Dakota State Association, Sioux
Falls.
June 23-25, Annual Convention, Wis­
consin State Association, Milwau­
kee, Hotel Schroeder.
,
October 6-8, 61st Annual Convention,
Iowa
State
Association,
Des
Moines, Hotel Fort Des Moines.

—used by both buyers and sellers to finance
business—as well as other foreign transactions
may be profitable to your bank if properly
developed and handled. We shall be pleased
to discuss this matter to show you how such
business may benefit every one concerned.
Banks are cordially invited to make use of

A
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 l l y n , A. C. an d C o m p a n y ...........................
A m e r i c a n E x p r e s s C o m p a n y ......................
A m e r i c a n N a t i o n a l B a n k an d T r u s t Co.

39
34
66
56

B

all o f our facilities.

F O R E IG N

INDEX OF
ADVERTISERS

DEPARTM ENT

H arris Trust and Savings Tank
Organized as N. W. Harris & Co. 1882

• Incorporated 1907

115 West Monroe Street, Chicago 90
Member Federal Deposit Insurance Corporation

B an kers L ife Insurance Com pany of
N e b r a s k a ..........................................................
B an kers T ru st Company, Des M o in e s ..
B an kers Trust Company, N ew Y o r k . . . .
B u rrou g h s A d d in g M achine C o m p a n y ..
C
C e n t r a l H a n o v e r B a n k an d T r u s t Co.. . .
C e n t r a l N a t io n a l B a n k an d T r u s t C o m ­
p any , D e s M o i n e s ..........................................
C e n t r a l S ta te s M u t u a l I n s u r a n c e A s s n ..
C h a se N a t i o n a l B a n k ......................................
C h e m i c a l B a n k an d T r u s t C o m p a n y . . .
C ity N a t io 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 ...........................
Continen tal B an k and T ru st C om p an y. .
C o n t i n e n t a l I l l i n o i s N a t i o n a l B a n k an d
T r u s t C o m p a n y ............................................
C o n t i n e n t a l N a t i o n a l B a n k ........................

38
75
23
32
29
12
38
4
71
58
67
54
27
59

I)

D a v e n p o r t , F. E., an d C o m p a n y .........59,
D e L u x e C h e c k P r in t e r s , I n c ........................
D e s M o in e s B u ild in g , L o a n an d S a v in g s
A s s o c i a t i o n ......................................................
D o a n e A g r i c u l t u r a l S e r v i c e s ......................
D o w n e y , C. L., C o m p a n y ...............................
D r o v e r s N a t i o n a l B a n k .................................
N orthw estern

Banker,


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

November,

1946

62
30
72
64
59
69

Iowa News

11 o r h l- If hh- ila nli i a llib i ion

Trifles make
for perfection!
W e make a
specialty of
SA LARIES, TAX ES AND INTEREST RATES are three management headaches
that don ’t bother bank-owner Clarence T. Simmons o f Ties Moines, for all of his
2,500 banks are of the coin bank variety. And variety is really the spice o f Mr.
Simmons’ hobby, too, for there are at least 24 countries represented in his collec­
tion now with more on the way. His banks were displayed in a downtown Des
Moines department store window during the recent Iowa Bankers Convention and
drew hundreds o f spectators.
One o f the most interesting banks added since the war is a bank from the Post
Office Savings Bank in London. It survived the London blitz but turned up with
split seams and all its coins welded together from the heat o f the bombing. Natives
of India evidently don ’t hide their wampum under their skirts anymore for a
savings bank from this country is also included.
Mr. Simmons, who is employed b y the Iowa State Bank in Des Moines, began
his collecting hobby while serving some years ago as a bank examiner. The banks
are usually on display in his home. The very size of the collection gives Mr.
Simmons his only problem. By the time he finishes dusting the last bank— i t ’s
time to start all over again!

paying attention
to trifles!

Home of Dobbs Hats
and Kuppenheimer
Good Clothes

F r a n k e l’ s
DES MOINES

M

F

F i r s t an d A m e r i c a n N a t i o n a l B a n k ,
D u lu t h ...............................................................
F i r s t N a t i o n a l B a n k , C h i c a g o ....................
F i r s t N a t i o n a l B a n k , M i n n e a p o l i s ...........
F i r s t N a t i o n a l B a n k , O m a h a ......................
F i r s t N a t i o n a l B a n k , St. J o s e p h .............
F i r s t N a t i o n a l B a n k , St. L o u i s ..................
F i r s t N a t i o n a l B a n k , S i o u x C i t y ..............
F i r s t T r u s t C o m p a n y o f L i n c o l n ..............
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 .........................

43
70
40
57
54
68
62
58
45
73

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

65

I
I o w a - D e s M o in e s N a t i o n a l B a n k an d
T r u s t C o m p a n y ............................................. 76
I r v i n g T r u s t C o m p a n y ..................................
8

.1
J a m i e s o n a n d C o m p a n y .................................. 34
J o u r n a l o f C o m m e r c e .................................... 34

K
K l i p t o L o o s e L e a f C o m p a n y ......................... 72
K o c h B r o t h e r s ................................................... 73

I.


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

3
28
73
21
60
46

7
64
2
35
42
42

N

N e w Y o r k T r u s t C o m p a n y ........................... 69
N o r t h e r n T r u s t C o m p a n y ............................. 26
N o r t h w e s t S e c u r i t y N a t i o n a l B a n k ......... 48
N o r t h w e s t e r n N a t io n a l L i f e Ins. C o . . . . 39

O

O m a h a N a t io n a l B a n k .................................... 19

F

II
H a m m e r m i l l P a p e r C o m p a n y ........... ..2 4 , 25
H a r r i s T r u s t a n d S a v i n g s B a n k ............. 72
H o m e I n s u r a n c e C o m p a n y ...........................
5

L a M o n t e , G e o r g e a n d C o m p a n y ................
L a w r e n c e W a r e h o u s e C o m p a n y ................
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 tock N ational Bank, C h i c a g o . . . .
L i v e S t o c k N a t i o n a l B a n k , O m a h a .........
L i v e S t o c k N a t io n a l B a n k , S io u x C i t y . . .

M a n u f a c t u r e r s T r u s t C o m p a n y ..................
M erchants M utual B on d in g C om pan y. . .
M e r c h a n t s N a t i o n a l B a n k .............................
M e r r ill L y n c h , F e n n e r an d B e a n e ..............
M i n n e a p o l i s 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 .........

P h i l a d e l p h i a N a t i o n a l B a n k ......................
P u b l i c N a t i o n a l B a n k an d T r u s t C o . . . .

6
58

R

R e m e r , M i t c h e l l & R e itz e l, I n c .................... 33
R o y a l B a n k o f C a n a d a .................................... 44
S

St. P a u l T e r m i n a l W a r e h o u s e C o .............
S c a r b o r o u g h an d C o m p a n y ............. 26, 37,
S ta te A u t o m o b i l e I n s u r a n c e A s s n ...........
Stock Yards N ational Bank, O m a h a ...

30
61
39
55

T

T e n s i o n K n v e l o p e C o r p o r a t i o n ..................
T h o m s o n an d M c K i n n o n ...............................
T o d d C o m p a n y ...................................................
T o y N a t i o n a l B a n k ..........................................

U

U n it e d S ta te s N a t i o n a l B a n k , O m a h a . .

31
35
44
67
50

V

V a l l e y B a n k a n d T r u s t C o m p a n y ...........

63

w

W a l t e r s , C h a r le s E., C o m p a n y .................... 54
W e s s l i n g S e r v i c e s ............................................. 71
W e s t e r n M u t u a l F i r e I n s u r a n c e C o ........ 36
N orthw estern

Ba nke r, N o v e m b e r ,

1946

74

Iowa ¡News

Judge:
promised
anything
it?
Mandy:
is all.

In Technicolor
Mandy, you say this man
to marry you? Have you
in black and white to prove
No, yo’ honor.

Jest black

Holier Than Thou
Sister Brown: “Did you notice that
extravagant-looking hat Mrs. Jones
had on in church this morning.”
Brother Brown: “ I’m afraid not. I
must confess I was almost asleep.”
Sister Brown: “A lot of good the
services did you.”
It Was Really Cold
An American and a Scotchman were
discussing the cold experienced in
winter in the north of Scotland.
“Why, it’s nothing at all compared
to the cold we have in the states,” said
the American. “ I can recollect one
winter where a sheep, jumping from
a hillock into a field, became suddenly
frozen on the way, and stuck in the
air like a mass of ice.”
“But, man,” exclaimed the Scotch­
man, “the law of gravity wouldn’t al­
low that.”
“ I know that,” replied the Amer­
ican, “but the law of gravity was
frozen, too.”
True Story
Every day we hear stories of people
who allow large sums of money to
“trickle” through their fingers because
of carelessness or because they are
ignorant of important details. Stories
of mislaid securities are abundant.
One authentic case recently involved
an elderly woman whose visits to her
safe depository were alert signals for
attendants. On the last occasion she
was seen to toss a paper in a waste
basket. A guard picked it up and
hastened after her.
“Madam,” he said, “do you realize
that you’ve just thrown away a $10,000 bond?”
Eying him with surprise she re­
plied: “Oh, that! It’s no good now.
I’ve just clipped the last coupon.”
Northw estern

Ban ker.


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

November.

1946

Easy M oney
Private Jones, an inveterate and
successful gambler, was such a de­
moralizing influence in his unit that
his lieutenant, after trying unsuccess­
fully to reform him, sent him before
the captain. After the interview the
lieutenant was summoned.
“ I’ve shown Private Jones he can
lose a bet,” the captain said. “ I asked
him why he couldn’t stop betting, and
he said: ‘Sir, it’s a habit I can’t seem
to lose. Why, I’ll bet you a dollar
right now you have a mole on your
left shoulder.’ Well, I knew darn
well I hadn’t, so I took off my shirt
and showed him. He admitted he had
lost and paid the dollar. I guess
that’ll hold him!”
The lieutenant was so noticeably
silent that the captain asked: “What’s
the matter? Aren’t you pleased?”
“No, sir,” was the reply. “You see,
on the way to your quarters Jones bet
me $5 he’d have the shirt off your
back in five minutes.”

ATot Looking
“You’re charged with throwing your
mother-in-law out of the window.
Guilty or not guilty.”
“Guilty, your honor. I did it with­
out thinking.”
“ That’s no excuse—you might have
hit somebody on the head.”
Wait a Few Years
A very shy high school boy, much
to his parents’ surprise, slicked up his
hair one night, and they asked him
where he was going. He replied very
casually, “Over to see Mildred Brown.”
They had hardly recovered from
their surprise, when he walked back
in. His father asked, “Well, didn’t
you see her?”
“Yes,” he said. “And she would
have seen me, too, if I hadn’t ducked
behind the garage.”
The Old Squeeze Play
Marjorie: “ So Harry is teaching you
how to play ball?”
Mildred: “ That’s right, and when I
asked him what a squeeze play was,
I think he put one over on me.”

A ppeased?
They tell the tale of a Scot peasant
whose daughter was kissed by a
stranger. To assuage the wrath of the
father the stranger tossed him a
Shilling.
“ Siller!” shrieked the old man.
“ Siller frae the mon that brought the
blush to the cheeks o’ my bonnie
Jean!”
And picking up the coin the proud
Caledonian dashed it to the ground.
Then he picked it up again and dashed
it against the wall of his cottage. Then
he picked it up for the third time and
dashed it into his pocket.
Dead Giveaway
A man and his wife had just pur­
chased a new rug for the living room,
and feeling rather proud of it invited
their next-door neighbors in to see it.
They were duly impressed and praised
the new acquisition effusively. The
next morning the five-year-old son of
the neighbor, who was not present the
night before, requested to see the new
rug. Much pleased that one so young
should take so much interest, the lady
showed her visitor into the living
room.
The boy gave it quite a careful in­
spection, walking around and across it
several times. Finally in a tone of
disgust he exclaimed, “ Huh! It don’t
make me sick!”
Just Starting
Young girl at perfume counter after
looking at My Sin, Breathless, and the
other lurid names: “Have you any­
thing for a beginner?”
Indifferent
“The horn on your car must be
broken.”
“ No, it’s just indifferent.”
“ Indifferent! What do you mean?”
“ It just doesn’t give a hoot.”
Shoo tin' the Bull
Small boy (running into a store):
“ Quick, help me; my father is being
chased by a bull.”
Clerk (excitedly): “What can I do?”
Small Boy: “ Put a film in my cam­
era.”

This report on our personal loan volume
looks very encouraging

Yes, it proves that those
suggestions from the Bankers Trust
were entirely sound


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

New problems arise in every field of
business — including banking. We’ve
encountered many — and our corre­
spondent banks have counseled with us
on many others. When you encounter

something that’s puzzling, we hope you’ll
ask us about it. If we don’t know where
to find the answer, perhaps we can
combine our experience with yours, and
work it out together.

BANKERS TRUST
C O M PA N Y iti DESM
OINES
M em ber, Federal R eserve System

M em ber, Federal D eposit Insu rance Corp.

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

service
to Iowa Banks and Bankers
On November 1st this Bank observed its 71st
anniversary of service to Des Moines and the State
of Iowa.

As we begin our 72nd year, we welcome this
opportunity to thank Iowa Banks and Bankers for
their business.

We appreciate, too, your kind

recommendations which through the years have
brought us so many new customers and friends.

Your continuing friendship, confidence and good­
will are included among onr most valued assets.

A STRONG, DEPENDABLE
C O R R ES P O N D E N T C O N N E C T IO N