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VEM BEI
194

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V:.

Nebraska
Convention
Section — Page

29


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Federal Reserve Bank of St. Louis

A PEACEFUL COUNTRY LANE IN AUTUMN TIME

.

A GREAT GRAIN CENTER
Cedar Rapids continues to become increasingly impor­
tant to the economic life of the nation. The Merchants
National Bank located in this market center of the
Middle W est offers unsurpassed service in the handling
of grain items.
W e invite you to use our large correspondent network
and enjoy the best of collection facilities.

/ f¿ e tá v i

Ë ew / 6

THE
MERCHANTS NATIONAL
=

B

A

I f c

=

O F F I C E R S
JAMES E. HAMILTON, Chairman Executive
Committee
S. E. COQUILLETTE, Chairman of the Board
JOHN T. HAMILTON II, President
MARK J. MYERS, Vice President
FRED W. SMITH, Vice President
GEORGE F. MILLER, Vice President and
Trust Officer
MARVIN R. SELDEN, Vice President

.J W

R. W. MANATT, Vice President
L. W. BROULIK, Vice President
PETER BAILEY, Cashier
R. D. BROWN, Assistant Cashier
O. A. KEARNEY, Assistant Cashier
STANLEY J. MOHRBACHER, Asst. Cashier
EVERETT C. PRATT, Assistant Cashier
C. F. PEREMSKY, Assistant Cashier
VICTOR W. BRYANT, Assistant Cashier
JAMES E. COQUILLETTE, Assistant Cashier

Cedar Rapids

Iowa

Member Federal Deposit Insurance 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

3

0f fortune onô

as ^ e n .u b !tonKoH

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of oor

eperaTion
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oder" bank-

'I g A

S i

SAFETY PAPER FOR CHECKS
GEORGE IAMONTE & SON, NUTLEY NEW JERSEY

[«ocliSSTHÈ WAVY UNES (g AIE A EAMONTE IRADE-MARK

thous£!î2-

A Check Paper All Your Own
Thousands of banks and many of the larger corporations
use La Monte Safety Papers with their own trade-mark or
design made in the paper itself. Such INDIVIDUALIZED check
paper provides maximum protection against both altera­
tion and counterfeiting— makes identification positive.


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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1948

4

H O W THE CHASE CAN BENEFIT YOUR BUSINESS OVERSEAS
T he Chase makes banking facilities directly available in the w o rld ’s com m ercial centers
through its ow n foreign branches and close correspondent relationships with leading
banks throughout the w orld . A m on g the services provided are:
Cashing of drafts under Travelers’ Letters of Credit
Effecting Collections • Making Remittances
Opening Commercial Letters of Credit
Supplying Credit Information
Assisting in arranging Business Connections
Supplying information on Exchange Conditions and Regulations

Many Chase correspondents in the United States use these ser­
vices extensively, having found that by so doing, they can save
their customers both time and money in the transaction o f their
overseas business.
booklet "H ow the Chase Can
Benefit Your Business Overseas.”

Send for our

THE CHASE NATIONAL BANK
OF THE CITY OF NEW YORK
Member Federal Deposit Insurance Corporation

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

America's to st Cities..
à

»

*


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Federal Reserve Bank of St. Louis

*

"

, • vour newspaper
Y o u ’d be shocked if youbr£een ruined by

• • •c

s s - » ; ’

S
r n

W HAT CAN

^ ”"

BE DONE TO STO P TH IS

Fire can be controlled. W h ile it is im ­
possible to completely eliminate this
hazard, there is no doubt that the pri­
mary cause is everyday carelessness.
And that can be decreased by the ex­
ercise o f care and preventive action.
The economic health o f the nation
is being seriously undermined by
losses in human, physical and natural
resources. The businessman and the
civic leader should take the lead in re­
ducing the terrific toll. In so doing, he
not only will be serving his own in-

:*»& y*

dS ° f ini“red'

LOSS?

terests but those of the country as well.
In the long run, fire insurance rates
are based on volume of losses so that
care in preventing fire is good econ­
omy as well as good sense and good
citizenship.

«THE HOME*
Home Office: 59 Maiden Lane, New York 8, N. Y.

FIRE

•

AUTOMOBILE

■

•

MARINE

6

24-Hour Collection
of YOUR Bank’s Checks
This is one of The N ew York Trust Company's many services accurately
adapted to each correspondent bank s specialized needs. D irect
sending by air and rail transit provides quicker availability of proceeds.

The unique flexibility o f The New
enables it to give full justice to i f 4
bank. These facilities include
service, with top-ranking

Y ork Trust C om pany’s modern facilities
the requirements o f a given correspondent
every type o f recognized banking
national and international connections

T he

Commercial Banking
and Loans

N ew Y ork T rust

Foreign Banking

C o m pan y
100 Broadway

Executor and Trustee
Services
Investment Review
Accounts
Custody Accounts

Madison Avenue and 40th Street
Ten Rockefeller Plaza

Member oj Federal Deposit Insurance Corporation

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

Corporate Trusteeships
and Agencies

7

M u ltiple-

D u ty Accounting M achine changes from one of these

Accounting M achine perm its its use on any

jobs to another. Its rem ovable form bars sim ply lift off

THE EXTREME FLEXIBILITY
D u ty

of the

N ational

and snap on— no screws, catches, or fittings to fuss with.

posting work in an y bank, large or small.
T h e large bank uses it for the volum e posting jobs
which are ordinarily being done in a manual way. T h e

H avin g standard keyboards, it can be operated b y any­
one who can type and run an adding machine.

small bank uses it on all, or any practical combination,

T h is is but one unit in the com plete service which

of the following bookkeeping w ork: individual ledgers,

N ational offers for every department of every bank,

general ledger, daily financial statements, regular m ort­

large or small. T h e y ’re all described in the new, illus­

gages, F . H . A . mortgages, loans and discounts, payroll,

trated 6 4 -p a g e b o o k le t sh ow n b elo w . Y o u r lo ca l

and trust records.

N ational representative will be happy to hand you your

In just a matter of seconds the N ational M u ltip le-

THE

NATIONAL

CASH

copy. A sk for it, today.

REGISTER

COMP A NY ,

A N EW , ILLUSTRATED, 64-PA G E BO O KLET describes the services of each of the
many National machines expressly designed for bank use. Shows how they can
speed work in every department. Ask your local National representative to
bring you your copy. You’ll find it informative and helpful. Keep it handy.


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

DAYTON

9,

OHI O

(ÿfcatumal
C ASH REGISTERS • A D D IN G M A C H IN E S
A C C O U N T IN G M A C H IN ES

Northwestern Banker, November, 1948

A Bank Is Known

•

•

.............. by its initiative in
helping correspondent banks when
unusual situations arise.

CENTRAL HANOVER
BANK AND TRUST COMPANY
NEW

YORK

Member Federal Deposit Insurance Corporation

Northwestern Banker, November, 1948


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

•

í)

Test the advantages of
sending your collections
----------------------- to ----------------------Continental Illinois National Bank
and Trust Company o f Chicago

Use o f fastest available transportation and our nationwide
network of correspondent banks assure quickest presentation
and returns— often at favorable rates— on any draft, note,
or other collection sent to us.
M any banks and business houses save time and money by
sending their collections to us, regardless o f whether these are
payable in Chicago or at other points in the United States.
Perhaps our service will be useful to you.

CONTINENTAL


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

ILLINOIS

NATIONAL

BANK

CHICAGO

90,

AND

TRUST

COMPANY

OF

CHICAGO

ILLINOIS

M em ber Federal Deposit Insurance Corporation

Northwestern Banker, November, 1948

10
★

★

in Cliicagii
FO R BO N D IN V ESTM EN TS
Correspondent banks are cordially invited to use
the First National’s Bond Department in their
bank investment programs.
To serve yon, and to insure prompt trans­
actions in United States Government, State and
Municipal Bonds, there is an adequate staff,
coordinated by experienced officers.
BOND

DEPARTMENT

A ustin Jenner
James P. Feeley
John H. Grier
Lewis M iller
Harold J. Schlüter

OFFICERS

Vice-President
Vice-President
Vice-President
Asst. Vice-President
Asst. Vice-President

Assistant Cashiers
George B. Wendt
Leroy F. Winterhalter
P. Alden Bergquist
Joseph A. Smole
Samuel Sachnoff

The First National Bank of Chicago
Building with Chicago and »he Nation Since 1863
MEMBER

★
Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

FEDERAL

D EPO SIT

INSURANCE

CO R PO R A T IO N

n

OISE IS on your payroll . . . however little you may
realize the fact. It’s costing you money by lowering
typing production and reducing clerical efficiency in gen­
eral. Actual tests proved that a typist expends 2 0 % more
energy under noisy conditions . . . and her production is
reduced about 5 % .

N

For an expert analysis of your typing station problems,
without cost or obligation, mail the coupon below—today.
Your nearby Remington Rand representative will make
this analysis at your convenience . . . and then show you
how the new Remington Noiseless

From these test results, it was concluded that a 15%
reduction in noise brings a 5 % increase in typing effi­
ciency. Which means that within each and every typing
station lies your greatest opportunity to cut office costs by
increasing typing production.
W ith the new Remington Noiseless on the job . . . you
eliminate a main source of noise in your office. Typing
production increases, office morale is better, telephone
conversations are made easier. All thanks to exclusive
Remington Rand silent pressure printing. Patterned after
the operation of fine printing presses, it p-r-e-s-s-e-s the
typebars against the paper swiftly and silently . . . gives
perfect reproduction in the merest whisper of sound.

Remington Rand Inc., Typew riter Division, Dept. D-1I
315 Fourth A venue, N ew Y o rk

10, N. Y .

W ithout cost or obligation on our part, please h ave your repre­
sentative call to a rra n g e for an a n a ly sis of our typing stations.

T Q gm q jG n T fyiu l

Firm .........................................................................................................................
Nam e........................................................................................ Title......................
A d d re ss.............................................................................................................................................

THE

F I R S T N A M E IN TYPEW RITERS


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

C ity...........................................................Z o n e ........... State................................

Northwestern Banker, November, 1948

our

w a r e h o u s e
r e c e ip ts
will assist you in making sound

inventory loans
Many of your customers have inventories which could provide the
basis for sound, profitable

loans, when secured bv W arehouse

Receipts of the St. Paul Term inal W arehouse C om pany.

w e l l be seeing yo u at th e c o n ve n tio n !
E. J. Otteson, Nebraska district manager, and T. C. Cannon, Iowa
district m anager, will be at the Fontenelle Hotel N ovem ber 9th
through N ovem ber 11th for the Nebraska Bankers Association
Convention. They will welcome the opportunity of discussing the
issuance of W arehouse Receipts as security for inventory loans.

St. Paul Terminal Warehouse Co.
ST. PAUL, M INNESOTA
des m oines office
515 Iowa-Des Moines Natl. Bank

other offices

Bids-

T. C. Cannon, District Manager

St. Paul

omaha office

Indianapolis

1105 First National Bank Bldg.
Elmer J. Otteson, District Mgr.

Buffalo

Northwestern Banker, November, 1948


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

Minneapolis
New York
Syracuse

Charlotte

Milwaukee
Boston

Dallas
Shreveport

Detroit
Philadelphia

Memphis

Atlanta

Jacksonville

Chicago
Pittsburgh
Albany, Ga.
Miami

13

W i l t M e e t in F I n r i d u
rails and skyways, late
A LLin roads,
November, will lead to Holly­

wood, Florida, scene of the 33rd An­
nual Convention of the Financial Pub­
lic Relations Association For four
days, from November 29th to Decem­
ber 2nd, this picturesque little town
on Florida’s famous east coast (17
miles north of Miami), will become
the financial public relations capital
of America. The palatial Hollywood
Beach Hotel has been entirely taken
over by the association for this period.
The convention program, including
a School of' Human Relations, two
general sessions, and various departmentals and clinics, offers the dele­
gates a grand total of 65 hours of
instruction, inspiration and informa­
tion. Of course, no delegate can at­
tend all of the clinics and departmen­
ta l, some of which will be held con­
currently.
Each morning will start with an
hour-long School of Human Relations,
conducted by Dr. Preston H. Scott,
coordinator of community relations,
Wayne University, and consultant to
the director of training, Ford Motor
Company, Detroit.
The program for the two general
sessions of two hours each will be:
“ President’s Message”—Robert Lind­
quist, vice president, La Salle Na­
tional Bank, Chicago.
“ Mainspring, the Story of Human
Progress and How Not to Prevent
It” — Henry G. Weaver, director,
Customer Research Staff, General
Motors, Detroit.
“ Public Relations Responsibility of a
Bank as Viewed by Management”—
Richard W. Trefz, president, Bea­
trice State Bank, Beatrice, Nebraska.
“ K.G.D.S.”—Carlyle Emery, vice presi­
dent, Ruthrauff and Ryan, Inc., Chi­
cago.
The banquet, to be held on the last
night of the convention, will feature
no formal speeches. It is felt that the
delegates, with such a sparkling and
complete program, will have heard
plenty of speeches by that time.
A final feature will be a post-con­
vention, all-expense trip ($94), to Ha­
vana. Those taking the trip will leave
Hollywood at 1 p. m. Friday, Decem­
ber 3rd, by bus for a tour of Miami.
Miami Beach. Coral Gables and other
interesting sections, embarking there
at 6 p. m. on a Peninsular and Occi­
dental steamer for the night voyage
to Cuba, returning to Miami at 8 a. m.
December 6th. Havana, Pearl of the
Antilles, is one of the most fascinating
and glamorous cities in the Western
Hemisphere. So it is expected that
this tour will serve as a very popular
and long-remembered culmination of
the 33rd Annual Convention.


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Federal Reserve Bank of St. Louis

DES MOINES
O ld est Financial Journal West of the Mississippi

#

53rd Year

*

No. 736

IN THIS NOVEMBER, 1948, ISSUE
EDITORIALS
Across the Desk from the Publisher................ ..........................
FEATURE ARTICLES
Frontispage .......................................................................................
Inflation . . . Employment and Bank Credit............Wm. G. F. Price
Bankers Battle Economic Events—A.B.A. Story and Pictures.... 20,
News and Views of the Banking World...................Clifford De Puy
Does Acceptance of Settlement Bar Further Recovery on Debt?
Legal...............................................................................................
Bankers You Know—Henry C. Karpf................. ................. ......

14

17
19
21
22
24
26

NEBRASKA CONVENTION SECTION
The Nebraska Bankers Convention Program................. ................ 29
Nebraska Business Outlook “ Excellent”— A N o r t h w e s t e r n
B a n k e r Survey ..................................................................................................
30
Omaha News ......................................... .......... ......................
38
Nebraska News ........................................................ -........-...........- - 39
BONDS AND INVESTMENTS
Artificially Low Interest Rates Contribute to Inflation—.............
.............................. ............ ............................... Raymond Trigger 47
INSURANCE
The Business Farmer Is Your Number One Prospect................. .
......................................................... Dennis C. Smith

51

STATE BANKING NEWS
Minnesota News ................... ........... -...............-................... - ........
Twin City News.......................................
South Dakota News......................................................
Sioux Falls News............................................
North Dakota News........................................ -.................................
Iowa News.............
Iowa Bankers Convention Report and Pictures...............67, 68,
Sioux City News...............................................
Coin Collectors’ Column.............................................
Conventions ..................................-............................................

55
57
61
61
63
67
69
77
80
81

IN THE DIRECTORS' ROOM
A Few Short Rib-Ticklers...............................................

82

NORTHWESTERN BANKER
527 Seventh S t .,

Pes Moines 9, Iow a, Telephone 4-8163
RALPH W . MOORHEAD
A sso c ia te P ublisher

CLIFFORD DE PUY
P ublisher
HENRY H. HAVNES
Editor
ELIZABETH CO LE
A d v e rtis in g Assistant
PAUL W . SH O O LL
F ield R ep res e n ta tiv e

BEN J. H A LLER, JR.
A sso c ia te Editor
HAZEL C. HADLEY
A u d ito r

M ALCOLM K. FREELAND
A sso c ia te Ed ito r
SADIE E. W A T
C irculation D epartm en t
JOSEPH W . FRANKS
F ie ld R ep res e n ta tiv e

NEW YORK O FFICE
Frank P, Syms, Vice President, 505 Fifth A v e ., Suite 1806

MUrray Hill 2-0326

DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review,
Des Moines Insurance Directory, Iowa-Nebraska Bank Directory.
Northwestern Banker, November, 1948

14
behind every worthw hile m ovem ent.

This kind

of a banker will en joy the respect of all in his
com m unity and their w holehearted support. There
need be no concern about the grow th and success
of such a b a n k .”
F rien dly cooperation with bank customers costs
nothing and yet pays such high dividends.
W ith

governm ent

agencies encroaching

more

and more on the banking business, it behooves
bankers everyw here to give careful attention to
the treatm ent of their customers and to make them
feel “ at h om e” whenever they cross the threshold
of what they should feel is their “ own b a n k .”

(D s u v l

S -

y 0 J U M j~ :

President, Federal Reserve Bank of Chicago
WTe have read w ith interest your analysis o f
business conditions

and the

concern which

we

must all have about inflation.
Tn your rem arks, you said, “ The general busi­
ness outlook appears to be mixed, but on balance
m ay w ell remain favorable for sometime further.
W h ile weaknesses m ay be expected to spread be­

A c ro ss th e D e sk
F r o m i lie P u b l i s h e r

cause of consumer resistance and the saturation
o f particular m arkets w ith excessive quantities o f
goods, there is no reason for us to relax our con­
cern about the danger of still fu rth er price in­
creases in m any lines, particularly where dom es­

(D&o a , ¿ ¿ u w &jcL 97 L . (B sw ükáu:

tic, defense and foreign dem ands overlap.

President, Central Bank & Trust Co., Denver, Colorado
W h en yon retired last month, M r. B rooks, as
President

of

the

A m erican

B ankers

State

B ank

A ssociation,

ested in the figures which you

D ivision
we

of

were

the

inter­

gave indicating

“ Our is a problem of achieving a delicate eco­
nomic

balance

betw een

purchasing

power

and

production under conditions of fu ll em ploym ent.
The penalty for failure can be very severe.

We

cannot afford to leave our economic fate to chance.

that there are 9,603 state-chartered banks in the

W e must exercise restraint in credit and spending

U nited States w ith total resources of over $86

at the peak of the boom in order to achieve a more

billion dollars or alm ost one-half of the total bank­

stable and enduring level of business activity and

ing resources of the entire country, but we were

em ploym ent in the years a h e ad .”

especially interested in w hat you had to say about
running a “ frien dly b a n k .”

The difficulty, M r. Y o u n g , is to impress upon,
the public that “ restraint in c r e d it” is a desirable

A s you so well put it, “ A bank can be run on a
sound basis and yet not need to have the atm os­
phere of a cold-storage plant or a m orgue.

It can

procedure in tim es when they feel we are livin g
in an econom y of “ easy sp en d in g .”
In

the resolutions on inflation passed at the

and m ust definitely have the good w ill of its cus­

A m erican

tom ers.

A frien d ly smile and a w ell balanced and

expressed the opinion that the causes of our pres­

planned public relations program go hand in hand

ent inflation were largely beyond the control of

with sound and successful banking.

banking and are prim arily due to huge govern ­

Banks can

B ankers

convention

in D etroit,

they

be a frien d ly place where people really en joy to

ment spending which in turn is furthered by pub­

come.

lic policies brought about through the influence

This fa ct has been proven in recent years

in m any banks all over the country.

of pressure groups both in Congress and in g o v ­

“ A w ell rounded public relations program in­
cludes an interest in the com m unity.

ernment adm inistration.

The w ide­

The resolutions also pointed out that the asso­

awake banker of tod ay is conscious of his respon­

ciation was especially sensitive to the “ inflation­

sibilities for preserving and advancing the bene­

ary threat to our econom y carried in the paym ent

fits of our dem ocratic w a y of life by serving his

by governm ent of subsidies that can only be met

com m unity in as m any ways as possible.

through ta x a tio n .”

He puts

his heart not only in his bank w ork but in his
com m unity w ork as well.


Northwestern Banker, November, 1948
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

He and his bank are

As

the

N o rth w estern

B an ker

sees

it,

M r.

Y ou n g, bankers can help to prevent fu rth er infla-

15
tion by continuing to use care and ju d gm en t in

duction and the num ber of jobs that can carry

m aking only such loans in their local comm unities

high w ages, all of which is in the interest of all

as will be used to increase fu rth er production of

of the p eo p le.”

goods and m aterials which, in turn, will increase

Over 47 per cent of the dividends paid by cor­

the supply of articles that are in dem and and thus,

porations are now paid to individuals with in­

through

comes under $5,000 a year, and this group should

increased

production,

bring

dow n

the

be extrem ely desirous of seeing that no confisca­

price of the individual units sold.

tory taxes are placed upon corporations and in­
dividuals which in turn w ould prevent the increase
of funds for investm ent purposes in new enter­

(Djuxjl J aajcL 9. Jism L:

prises.

Director of the Bankers Trust Co., New York

L e t ’s do everything we can, M r. K en t, to keep

Y o u r recent defense of the private enterprise
system in the U nited States is very direct and to
the point.

alive the private enterprise system which has con­
tributed so much to the w elfare of the people of
the United States and has also enabled us to use

U nder this system , we have built the greatest

our surplus fu n ds to help those abroad.

cou n try in the w orld with the highest wages paid
w orkers anywhere, yet, as you point out, taxation
takes aw ay funds which could be used for “ V e n ­
ture C a p ita l.”

Thus there are less funds avail­

able to build new factories and new m achinery

(DsjOA. f/tfudotv

(D. fiaim sA.:

President, First National Bank, Tuscaloosa, Alabama

to produce new goods and em ploy additional peo­

A s form er President of the N ational B an k D iv i­

ple who in turn w ould receive w ages as a result

sion of the A m erican B ankers A ssociation, we read

o f this original capital investm ent.

w ith considerable interest your statem ent before

A s you put it, “ I f taxation continues to take

that D ivision in which you discussed the m one­

aw ay the funds called venture capital that would

tary system under which we have operated since

otherwise be used to fu rth er new inventions, better

the early days of the now departed N ew Deal.

processes in production, and low er costs, w e will

“ Since M arch, 1 9 3 3 ,” you said, “ we have been

reach a period o f stagnation, which will inevit­

operating under a m onetary system which few of

ably be follow ed b y retrogression and a low er and

our citizens understand.

low er standard of liv in g b y the people.

The pri­

in simple te rm s; and it is com plicated by the fact

vate enterprise system that has made it possible

that internationally we are on a restricted gold

for

w orkm en

throughout the

United

States

to

bullion basis, whereas, dom estically, we are oper­

have autom obiles in grow in g proportion, electric

ating on an inconvertible

refrigerators, w ashing

machines, electric power

It is difficult to define

paper principle

with

and ability to utilize the radio and other electrical

minor exceptions.
“ W e maintain, by a system o f indirect con­

devices cannot then continue, as governm ent con­

version, our domestic inconvertible paper m oney

trols w ill arise that w ill sm other it.

and silver and minor currency on a parity with

“ Our governm ent w ill begin to move tow ard

gold, although gold cannot be had for domestic

a d icta to rsh ip ; and instead of our exam ple as a

use except in the arts.

free people and the production of our country,

m akes it possible for foreign governm ents and

This exceptional situation

helping the peoples of other nations to go forw ard,

banks to obtain our gold, but our own A m erican

we w ill become useless to them, which w ill in­

citizens are prohibited fro m gettin g it fo r m one­

crease the

tary uses.

difficulties

of livin g

throughout the

w orld, including, in particular, the U nited States.

O f one thing we can be sure, M r. Palm er, w ith

Our people, because of our private enterprise sys­

the first change in the adm inistration since 1933,

tem, have gone so fa r ahead of other nations in

we can at least hope that some of the unsound

their general ability to produce conveniences of

and alm ost insane m onetary ideas of the previous

livin g fo r w ide distribution that the effect upon

N ew D eal adm inistrations will be a thing of the

them w ill be a greater

those in other countries where they have never

past.
W e sincerely believe that we can expect a bet­

know n the progress in better livin g th at has been

ter, clearer and more sound approach to our fiscal

catastrophe than

upon

the lot of our people.
“ Those w ith sm aller incomes do not seem to

and financial problem s than we have had for the
last 16 years.

realize that their greater interest lies in dem and­
ing that the governm ent reduce its expenditures
so that it can cut the high taxes of those in the
m edium and higher brackets and enable a part of
their income to be available for increasing pro­


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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1948

16

Photographing 2 0 ,0 0 0 Checks a Day
The Recordak is an ingenious ma­
chine that photographs both the
front and back of each check, simul­
taneously, side by side on the same
microfilm.
The use of the Recordak provides a
permanent record of every check
transaction. It reduces human errors
and in case of items lost in transit it

furnishes
items.

complete

A s an average 20,000 items (40,000
images) are photographed each day
— requiring 110 feet of microfilm.

and Trust Company - Des Moines, Iowa
FED ER A L

Northwestern Banker, November, 1948

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

D E P O S IT

IN S U R A N C E

of

Should the occasion require, photo­
static copies of checks can be fur­
nished.

CENTRAL N A TIO N A L BANK
M EM BER

description

C O R P O R A T IO N


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Federal Reserve Bank of St. Louis

The integrity inherent in the name
Allen-W ales on an adding machine is your
guarantee of A C C U R A C Y , S P E E D and
D E P E N D A B IL IT Y — three factors essential
to satisfactory adding machine performance.

ALLEN W WALES
ALLEN-WALES ADDING MACHINE DIVISION
OF
THE NATIONAL CASH REGISTER COMPANY

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444
N E W

MADISON
Y O R K

AVENUE
2 2 ,

N .

Y .

19

Enfl at hm

. . .

E m p loym en t and

Etank Credit
By WM. G. F. PRICE
Vice President
American National Bank and Trust Company
Chicago
(Editors Note: In a recent talk be­
fore the National Association of Bank
Auditors and Comptrollers, Mr. Price
first defined bank credit as “ The crea­
tion of purchasing power.” He then
proceeded to point out that there is
a distinct relationship between bank
credit, inflation . and employment.
With these facts in mind, he followed
up with some pertinent thoughts on
these tico questions:
1. If there is such a relationship,
what should you and I do about it?
2. Why is it important that we do
something about it now?
The article on this page deals with
the latter two questions.)

approximately the time agreed upon?
This has to do with the safety of the
bank’s assets and with its liquidity.
If both safety and liquidity are not
assured, then, sooner or later, there
is no bank, so there is nothing to

ES, there is a relationship be­
tween bank credit—the creation
of purchasing power—and infla­
tion in general and employment in
particular. The record bears this out.
We are not going to concern our­
selves here with which comes first
—the chicken or the egg.
We will merely be content . . .
W M. G. F. P R IC E
“disturbed” is probably a more ap­
“ Bank credit is creation of purchasing power”
propriate word . . . to say that there
is a relationship and then to address
ourselves to the third of our four talk about. The second basic ques­
questions: What should you and I tion on which we must satisfy our­
selves is: What will be the over-all
be doing about it now?
impact
of the purchasing power which
Well, what should we be doing
about it? I have a few suggestions we are creating?
Useful Loans
to offer. The first is that you and I
If it serves to increase or maintain
as bankers must recognize bank credit
for what it really is, namely, the crea­ production, or to increase or maintain
tion of purchasing power. Lest you employment, I .think we may reason­
think that this has been repeated too ably say that the loan is a useful
often, let me say that there seems one. If the loan results merely in
to be many people who do not agree an increase in prices, without bene­
with this definition. To me it is fiting physical production or employ­
important that you and I in the bank­ ment, the real value of the loan is at
least open to question.
ing business accept it.
I am fully cognizant of the fact
When we commercial banks make
loans or buy bonds, wo do not “lend that competition in the banking busi­
deposits.” We create them. The de­ ness is keen and that perfection is not
posits may not stay with the bank possible of attainment. But what I
which created them, but they do stay do feel is that when we make loans
within the banking figures until the which are inflationary—that is, which
are apt to increase prices but not apt
debt is paid.
My second suggestion is that you to increase or maintain production or
and I recognize when we make loans employment—then we should be very
that there are two basic questions on conscious of what we are doing.
No doctor worthy of the name will
which we must satisfy ourselves. The
recommend an operation solely be­
first, obviously, is: Is the loan safe?
Will we get our money back and at cause he can make a fee of $1,000.

Y


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No banker should make a loan, espe­
cially today, solely because it is safe
and profitable.
The next suggestion comes in nat­
ural sequence. You and I must have
the courage to decline loans which,
in our best judgment, will not benefit
the applicant or which will accentu­
ate trends we believe undesirable.
We as bankers sincerely believe that
inflation is bad for us and for almost
everyone else. It gets us no nearer
to a solution of this problem to point
the finger at government for “extrav­
agance” or at labor for “high wages”
or at business for “big profits,” and
then to look out the window when
others say to us, “ What about the
high and rising level of bank loans?”
Banks do not create inflation. But
we are one of the forces involved.
We must accept that responsibility
and act accordingly. This involves
an acute awareness on our part of
what is happening, an ability on our
part to view the banking system as
a whole, and the courage to tell our
customers the plain truth as we see
it when we decline a loan.

Need Courage, Ability
The fourth suggestion is that we
have both the courage and the ability
to make loans—safe ones—when the
instruments on the economic panel
board indicate the machine is start­
ing to slow down to a dangerous
crawl. Realistically, we do not have
too much to do with the total of
our bond account. The central bank­
ing and fiscal authorities have fairly
extensive powers which exercise great
influence on the level of the bond
account. I do not say this resent­
fully, for I happen to feel that they
should have considerable authority in
this regard.
On the other hand, we have much
more to say in determining the level
of our loan account. If we bankers
are to make our contribution to amel­
iorating the excesses of both inflation
and deflation, we must have the cour­
age to put the brakes on the loan
account on the up side. The tough
one is to have enough courage to
step on the gas on the down side. To
(Turn to page 63, please)
Northwestern Banker, November, 1948

20

ttankei\s Était h» Eeonom ie E vents
Excerpts from Speeches Made at the Detroit American Bankers Convention
JOHN L. McCAFFREY, President
International Harvester Company
Chicago, Illinois

GWILYM A. PRICE, President
Westinghouse Electric Corporation
Pittsburgh, Pennsylvania

“There has been too much misrepresentation
and exaggeration of the wages paid to capital.
It is indeed a distinguishing and indispensable
feature of our economy; but its volume in rela­
tion to that economy is as the volume of the
lubricant to the machine which it enables to run.
In proportion, there was less of that lubricant
in 1947 than in 1929: even less—and this seems
incredible—than in 1932. Dividends built this
marvelous mechanism we call the United States,
and dividends keep it going. But the price which
the American people paid for that mighty ele­
ment in 1947 was only 90 cents per week per
capita. Those were the actual cash wages of
venture capital in a year in which the wages of
labor were at a then all-time high.”
L. A. TOR IE, President
Meriden Savings Bank
Meriden, Connecticut

“We savings and mortgage men have an op­
portunity to exercise restraint on the inflation­
ary aspects of the housing business. If we
adequately promote savings and thrift, our in­
fluence on inflation will be most effective.
“ In order to attract savings, some savings
banks have increased their interest rate from
iy2 per cent to 2 per cent, and some of the com­
mercial banks have increased the amount on
which they will pay their maximum interest
rate.
“Our recent survey reveals that an addi­
tional sixty banks have either resumed their
activity in school savings or entered the field.
School savings banks are now operating in over
4,000 schools with over 1,800,000 children par­
ticipating. During the last school year, these
children deposited $15,000,000, and they now
have in their bankbooks over $45,000.000.”

Ita n livrs

1. Charles B. Weaver, vice president, and N. Hall Layman,
assistant cashier, both of the Northern Trust Company, Chicago.
2. Donald L. MacGregor, assistant vice president, N. P.
Delander, vice president, and W. L. Boss, vice president, all of
the First National Bank of St. Paul.
3. H. C. Matzke, president, the City National Bank of Duluth,
and Nic. A. Welle, vice president, First National Bank, Bemidji,
Minnesota.
4. Herbert H. Echtermeyer, vice president, Live Stock Na­
tional Bank o f Omaha, and Mrs. Echtermeyer.
5. Mrs. H. D. Bateman, w ife o f the president o f the Branch
Bank and Trust Company, Wilson, North Carolina, and Mrs.
Alden S. Bagnell, w ife of the vice president of the Live Stock
National Bank of Chicago.
Northwestern Banker, November, 1948

JOHN YV. REMINGTON, Vice President
Lincoln-Rochester Trust Company
Rochester, New York

“ Many people today are puzzled about the term,
‘marital deduction,’ and until the Treasury De­
partment issues its regulations construing the
amendments of the Federal Estate Tax Laws en­
acted April 2, 1948, there necessarily will be
doubts.
“ The new law permits husbands and wives to
bring about favorable tax results through their
own planning and actions, of course aided by
attorneys and trustmen. Fortunately, these re­
sults are accomplished in a way that does not seek
to change the property rights of married people.
“Division of property need not be made to pro­
duce the desired estate tax savings. The rules
apply whether the persons planning their estates
are members of community property or commonlaw states.”

at Ih-tritìi

BANKERS and their wives were kept tremendously busy at
the American Bankers Association annual convention in Detroit
recently and the pictures on the opposite page were taken at
that time. Beading from left to right they are:


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“ From an economic standpoint, our country
is organized on the basis of free, individual en­
terprise. Our philosophy has been and still is
that in most cases the way to get a job done well
is to leave it up to private initiative, rewarding
good performance with a reasonable profit.
“That theory has worked, up to now. There
are people who do not believe in it, but they
have failed to suggest anything else which will
work anywhere near as well. But the future
success of our economic system will depend
entirely on the quality of the individual busi­
nessmen who are making the decisions which,
every day, determine our economic course.
“That is equally true of our statesmen, our
writers, our clergymen, and all the others who
contribute goods, services, or ideas to American
life.”

0
. . A.
A

6. Mrs. Frederick M. Morrison and Mr. Morrison, president,
Valley Bank and Trust Company, Des Moines.
7. Rufus Crosby Kemper, president, and Kearney Womall,
vice president, both o f the City National Bank & Trust Com­
pany, Kansas City, Missouri.
8. Ellsworth Moser, executive vice president, the United
States National Bank o f Omaha; William C. Bowman, president,
First National Bank, Montgomery, Alabama, and Clarence E.
Hill, chairman o f the board, Northwestern National Bank of
Minneapolis.
9. W. J. Hein, vice president, Mississippi Valley Trust Com­
pany, St. Louis, and Fred M. Naber, vice president, Continental
Illinois National Bank and Trust Company, Chicago.
10. J. Lewell Lafferty, vice president, Republic National Bank
of Dallas; D. James Pritchard, vice president, Society for Sav­
ings, Cleveland; Merrill Anderson, president, the Merrill Ander­
son Company, Inc., New York, and Robert Lindquist, vice presi­
dent, La Salle National Bank, Chicago.
11. G. T. Somero, president, First National Bank, Ely, Minne­
sota, and Kenneth T. Martin, assistant vice president, First
National Bank o f Minneapolis.


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Federal Reserve Bank of St. Louis

X e im and
OF THE BANKING WORLD
By CLIFFORD DE PUY, Publisher

HEN we were in Detroit for
the American Bankers Conven­
tion, we had the pleasure of
meeting Henry Ford I I , and found
him a very pleasant and genial young
man who is about 6 feet tall and looks
like a Harvard fullback.
The Ford Company now employs
135,000 people throughout the United
States and has 17 assembly plants.
The daily payroll is $1,000,000 and it
cost them $90,000,000 to change over
to their new models for the Ford,
Lincoln and Mercury.

W

tional Bank of Omaha, had his finelooking 6-foot son with him at the
A.B.A. Convention. His son is Dr.
Austin Vickery of Cleveland, Ohio.
Frank L. King, who was elected
president of the State Bank Division
of the American Bankers Association
in Detroit, is president of the Califor­
nia Bank in Los Angeles. Mr. King
was advanced from the post of vice

George Way Williams, vice presi­
dent of the Detroit Trust Company, in­
vited us to have lunch with him at the
Rotary Club meeting at the Statler
where an eastern investment banker
told us “what would happen tomor­
row.” We hope he is right because his
views were optimistic.
J. M. Hutchinson, executive vice
president of the Davenport Bank and
Trust Company, Davenport, Iowa, rep­
resented his very fine institution at
Detroit while his brother-in-law, V. O.
Figge, president of the bank, was on
a hunting trip in east Africa.
Successful to a marked degree, the
expedition netted more than 50 speci­
mens of the sort of game that one sees
only in circuses or big city zoos, and
40 individual species, the latter feat
establishing an African hunt record.
Trophies obtained, and which will
be mounted once they arrive in this
country, include the “big five,” con­
sisting of elephant, rhinoceros, lion,
buffalo and leopard.
Many of them are in the record
class, including the rare hunter’s ante­
lope, this specimen being the second
largest on record; the third largest
wildebeest ever shot; an impalla,
whose horns were one-half inch off
the standing record; a fine Kudu, and
a sable antelope, roan antelope,
cheetahs, bush buck and numerous
others.
Mr. Figge left Davenport July 4th
and flew to Paris, from there to
Cairo, and thence to Addis Ababa and
on to his headquarters in Nairobi,
Kenya Colony, British East Africa. In
all he flew 20,000 miles and traveled
6,000 miles in Africa in hunt cars that
covered territory in Tanganyika and
Kenya.
Austin L. Vickery, assistant vice
president of the United States Na­

Northwesfern Banker, November, 1948
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Federal Reserve Bank of St. Louis

The retiring president o f the
American
Bankers
Association’s
State Bank Division, Elwood M.
Brooks (le ft ), president o f the Cen­
tral Bank and Trust Company, Den­
ver, Colorado, turns over the gavel
to the new president, Frank L. King
(righ t), president of the California
Bank, Los Angeles, California.

president, which he occupied during
the preceding year.
Mr. King is a native of Sparta, Illi­
nois. He began his banking career in
1916 as assistant cashier of the First
National Bank in that city. Two years
later, he was appointed a national
bank examiner, in which capacity he
served until 1925 when he became as­
sistant cashier of the Mutual National
Bank of Chicago. In 1928, he trans­
ferred to the Continental National
Bank and Trust Company of Chicago
as assistant comptroller. He remained
with the bank through its consolida­
tion with the Illinois Merchants
Trust Company, later becoming comp­
troller of the new institution, the
Continental Illinois National Bank
and Trust Company.
In 1943, Mr. King became executive
vice president and director of Cali­
fornia Bank, in Los Angeles, and in
1945 was elected president of that in­
stitution.

Col. William G. Edens, vice presi­
dent of the Chicago National Bank, at­
tended his 41st National bankers con­
vention at Detroit. The Colonel is
now 86 years “young” and is still
going strong.
L. T. Morris, chairman of the board,
and C. H. Lockhart, president of the
First Citizens National Bank of Watertown, South Dakota, represented their
institution at the A.B.A. convention
and reported that their state has the
best small grain and corn crop in its
history.
They are also looking forward to
an influx of hunters as the season does
not close until November 22nd.
Charles M. Nelson, vice president of
the Northern Trust Company of Chi­
cago, and his distinguished associates
entertained their friends during the
American Bankers Convention at the
Detroit Club each morning, where
they were served a delicious break­
fast. This has become an annual oc­
casion which has proven a very de­
lightful affair.
W. E. Brockman, vice president of
the Midland National Bank in Minne­
apolis, has a very charming 15-year-old
daughter, Sue, who is a very fine
horsewoman and has taken many
prizes at various horse shows with
her horsemanship.
Julius K. Waibel, advertising man­
ager of the Continental Illinois Na­
tional Bank and Trust Company of
Chicago, gave us a private showing of
their new film, “Back of Every
Promise,” which is a story of the serv­
ice their bank renders in all of its
various departments, and especially
its correspondent division.
The clever thing about the film is
that most of the talking and explain­
ing about the bank service comes from
the president of a country bank rather
than from an officer of the Conti­
nental.
The film was very well done and
most interesting to see.
Arthur J. Morris, founder of the
Morris Plan Bank, and chairman of
the Industrial Bank of Commerce in

(Turn to page 80, please)

23

*We O^en,
TO OUR CORRESPONDENTS,
"RECORDAK” PROTECTION
AGAINST
LOSS IN THE MAILS:
We now Recordak all items drawn on points outside of
Omaha.

THE WHIMS OF DEPOSITORS:
Oftentimes a depositor wants a description of a particular
item after it has been deposited. Recordak supplies this
information without delay.

THE HAZARDS OF FIRE:
In case of loss of an item which has been Recordak-ed,
we can supply a photostatic copy immediately. Usually
we can collect on this photostat without the necessity of
securing a duplicate check.

DISHONESTY AND FRAUD:
Recordak offers immediate proof in case of a forgery when
the item has been paid and destroyed.

The Omaha
National Bank
Member Federal Deposit Insurance Corporarion


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F A R N A M

AT

S E V E N T E E N T H

Northwestern Banker, November, 1948

24

LEGAL

tto 0*s
Acceptance
Hoc Farther
Q. Houghton

held a $10,000 mort­
gage on a Nebraska farm owned by
Carson. Carson defaulted and, in
1934, arranged with the Federal Land
Bank for a $5,000 loan on the land.
Houghton agreed to accept the $5,000
in complete satisfaction of his mort­
gage. Despite this agreement, he
later prevailed on Carson to execute
in his favor a $5,000 second mortgage
for the difference. That mortgage
was not paid and Houghton sued.
Should he prevail on it against Carson?

No. A payment or other perform­
ance by a third person, accepted by
a creditor as full or partial satisfac­
tion of his claim, discharges the debt­
or’s duty in accordance with the
terms on which the third person of­
fered it. This is the general rule on
these matters and is controlling here.
It bars Houghton’s right to recover
on the second mortgage because he
accepted the $5,000 obtained from the
Federal Land Bank in complete sat­
isfaction of his claim on the first
mortgage. The Nebraska Supreme
Court has so held in a recent decision
involving analogous facts.

Q

.By statute, in Iowa a person who
finds lost “goods, money, bank notes,
and other things” is entitled to a 10
per cent reward from the owner on
turning them over to him. Certain
non-negotiable U. S. Government sav­
ings bonds and corporate stock certifi­
cates were stolen from the safe of the
person owning them. Immediately
after <he robbery the Government and
the corporations involved were noti­
fied of the theft. Nothing could be
realized on the securities without the
owner’s signature. They were found
later and returned to him. The find­
er sought to recover the statutory re­
ward. Could he do so?

No. In a recent decision involving
analogous facts the Iowa Supreme
Court denied recovery of reward
money to the finder, saying that the
statute applies only to things that are
lost and that, since the bond obliga­
tions and corporate shares had not

Northwestern Banker, November, 1948
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Federal Reserve Bank of St. Louis

This and Other Timely Legal
Questions Are Answered
by the
LEGAL DEPARTMENT
of the
NORTHWESTERN BANKER
been lost, the finder was not entitled
to the reward claimed. In support
of its position that the articles stolen
were not lost the Court pointed out
they could not be negotiated without
the owner’s signature and that sub­
stitute bonds and certificates were
obtainable by meeting certain re­
quirements of those issuing them.
Because of these features it was felt
that, if anything could be considered
lost, it was simply the papers, which
were of no particular use without the
owner’s signature, and not the real
value which they represented.

Q

.Bradley, a Minnesota resident,
executed in favor of Schommer, a
South Dakota resident, a promissory
note. The instrument Avas not paid
when it became due. Schommer sued
Bradley on the note in South Dakota
some time later, jurisdiction being
obtained by garnishment and the
service of process on the defendant
in Minnesota. The period prescribed
by the Minnesota statute of limita­
tions by that time had run so that
the action, if filed there, Avould have
been barred. The South Dakota laws
prescribed a longer period, liOAvever,
and the action a a ;i s not barred under
those laws. Could Schommer recover?

Yes. In an analogous situation the
South Dakota Supreme Court recent­
ly held that the Minnesota statute of
limitations could have no extra-terri­
torial effect in South Dakota and that
the action on the note in the South
Dakota court was not affected by the
fact that the action was barred by the
Minnesota statute of limitations.

Q. Clagborn was treasurer of a con­
cern, the affairs of which were under
investigation by a federal grand jury.
He Avas serA^ed perso n ally Avith a sub­

Recov
poena duces tecum to appear before
if three days later and bring with him
certain books and papers.
W itness
fees were tendered. His law yer told
him h ow im portant it Avas to com ply
Avith the subpoena. Despite this, he
had the la w y er appear the m orning
fo r w hich he was called and tell the
C. S. attorney he could not be pres­
ent because o f a business engage­
ment but that he Avas Avilling to ap­
pear at a later date. The subpoena
was the fou rth that had been issued
to him and he had not been cooperafive. He Avas convicted o f contem pt
of cou rt and sentenced to thirty days
im prisonm ent. W as such in order?

Yes. In these matters punishment
for contempt of court is to be meted
out if a person’s failure to respond to
the subpoena is willful and contuma­
cious. Conduct similar to that out­
lined in the question has been held
to meet this test and to support such
a sentence. Even if Clagborn’s law­
yer had advised him that he need not
appear because of the business en­
gagement, which was not the case, he
would not have been able to avoid
conviction, as advice of counsel is not
a defense to an act of contempt, al­
though it may be considered in miti­
gation of punishment.

Q

.Certain
m unicipal real estate
held by a trust com pan y fo r an estate
was zoned fo r residential purposes
only. A prop osition Avas presented to
it w hereby an enhanced in com e could
be obtained therefrom if a business
was operated thereon.
The trustee
sued to have the zon in g ordinance re­
striction declared void as an u n con ­
stitutional exercise b y the m unici­
pality o f its p olice poAver. The city
attorney, in the court proceedings,
entered into a written stipulation
that this Avas not the case. Was such
a stipulation, under the general rule,
binding on the city ?

No. It is generally held that parties
may not stipulate the invalidity of
statutes or ordinances and that the
courts are required to disregard such
(Turn to page 65, please)


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>T <H 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 services used by bankers
throughout the M iddle West.

........ ...

-

-

ffltV

■ ■ - ..............

LIVE STOCK
BANK

ia / if n a /

o f W

/ u r tf/ O

ESTABLISHED 1868

M em ber Federal Deposit Insurance Corporation

U N IO N

STOCK

YARDS

Northwestern Banker, November, 1948

26

B a n k ers You K n o w

H en ry C. K a rp f
President, The Live Stock National Bank
o f Omaha
“ One o f the outstanding live stock bankers
in the country"’
F T H E term “ dual-purpose” could
be applied to a banker, then that
title rightfully should belong to
H enry C. K a rp f, president of the Live
Stock National Bank o f Om aha. This
country has some very fine bankers
and also some excellent live stock
m en, but rarely can there be found
a com bination of the two as reflected
in the character and personality of
M r. K arp f. His 41 years of work in
Nebraska banks have given h im the
knowledge and experience required of
a chief executive who must supervise
properly the operations of a bank
with over $60,000,000 in assets. A t
the same tim e, his first-hand know l­
edge as a producer and feeder of live
stock has led contemporaries to rate
him as one of the outstanding live
stock hankers in the m iddle west,
many o f them extending this tribute
to include the entire country.
M r. K a r p f’s love of the soil is a
basic quality in his character. Fre­
quent visitors to his office know that
if they can’t find him in the bank they
can undoubtedly find! him leaning
over a feed lot fence, discussing oper­
ations with a feed lot customer. His
practical experience and knowledge
of live stock and farming are excep-

I

Narthwesfern Banker, November, 1948


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Federal Reserve Bank of St. Louis

tionally valuable in operating a bank
which specializes in live stock loans.
H enry K a r p f’s reputation as a hard
worker is well earned. Born July 22,
1892, in Conneaut, O hio, his form al
education ended at the eighth grade.
A t the age of nine years he began
w orking in a slaughterhouse, his in­
terest in this business coming from
his father, who was in the wholesale
and retail meat business. H ere he
gained his first knowledge and liking
for live stock. The fam ily moved to
M itchell, Nebraska, and in 1907, at
the age of 15, H enry K a rp f started his
first bank job with the First National
Bank in that western Nebraska town.
W h ile m aintaining his keen interest
in live stock, he gave fu ll attention to
his work. The result was that the
bank officers recognized his capabili­
ties and gave him added responsibili­
ties Before joining the Live Stock
National Bank of O m aha as executive
vice president in 1937, he was join tly
cashier of the First National Bank in
M itchell and the First National Bank
in M orrill.
In January, 1947, Mr. K a rp f was
elected president of the Live Stock
National Bank follow ing the death of
A lvin E. Johnson. M r. K a rp f also is

president of the First National Bank
in M orrill. H e still owns 760 acres
of irrigated land in four farms near
M orrill, has a 2,600 acre ranch in that
area and is a partner in a 500 acre
irrigated farm near Torrington, W y ­
om ing. Throughout the Scottsbluff
V alley he is held in the highest re­
gard by his customers with whom he
dealt and lived for m any years.
The everyday problem s of banking
do not escape the attention of Mr.
K a rp f. H e believes that “ capital ex­
penditures, credit expansion and the
relationship between banking and the
federal governm ent” pose the great­
est problem s for bankers today and
with the same tenacity of purpose
that he has always displayed, he firm­
ly believes these problem s can be
settled. W ith in his own bank he is
very popular with his em ployes who
appreciate his constant efforts in at­
tem pting to m aintain a reasonable
standard of living for them.
M r. K a r p f was married to Lodicea
B abcock on August 21, 1916. They
have one son, Charles, 27 years o f
age. M r. K a rp f is a m em ber of the
Presbyterian Church, is a Mason and

(Turn to page 42, please)

27

4 Banks Sold in Dctnber!
With Only One Exception, Each Sale W a s
M ade to First Purchaser Introduced
Capital
Structure

Bank

Deposits

1. First National Bank................................... $
Lacon, Illinois

235,000

$2,896,000

2. Montgomery County National Bank..
Red Oak, Iowa

200,000

4.295.000

3. First National Bank...................................
Glidden, Iowa

105,000

2.425.000

4. Bank of O d essa ..........................................
O dessa, Missouri

172,500

2.800.000

In Each Instance Controlling Stock W a s Sold.
These Sales Represent a Total Investment of $346,470.
Further information regarding these transactions will be found in
the news sections of this publication. W e are proud to have had

HARRY B. GIPSON JOINS
BANKERS SERVICE COMPANY
AS VICE PRESIDENT
Harry B. Gipson, who has had many
years of experience in negotiating the
sale of banks, has joined the Bankers
Service Company, of Des Moines, as
Vice President.
M r. Gipson is an experienced country
banker. For many years he was the man­
aging executive of banks at Odell and
Rising City, Nebraska, after which he
served as a State Bank Examiner. For
nine years (1 918-1927) he was identi­
fied in an executive capacity with The
Charles E. Walters Company of Omaha.
In 1928 M r. Gipson again became
identified with the State Department of
Banking in Nebraska and for nine years
(1928-1937) was associated with the
Receivership Division in the liquidation
of state banks. In January, 1938, he be­
came Executive Vice President of the
Coleridge National Bank of Coleridge,
Nebraska.

the honor of serving the owners and the purchasers of these fine
banks. If you are thinking of selling or desire to buy, we can be
of service to you. Confidential correspondence solicited from those
desiring to buy or sell.

THIS COMPANY WILL BE REPRESENTED AT THE

NEBRASKA BANKERS CONVENTION
OM AHA, NEBRASKA, NOVEMBER 10 AND 11
By

Henry H. Byers, President
and

H arry B. G ipson

Harry B. Gipson, Vice President
H. H. B yers

Hotel Headquarters
Hotel Fontenelle, Om aha, Nebraska

BANKERS SERVICE CHMPANY
1108 Register <& Tribune Bldg.
P. O. Box 1435


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Federal Reserve Bank of St. Louis

Des Moines, Iowa

Tel. 2-7800

Since June, 1941, M r. Gipson has
been employed as a Government Audi­
tor, including five years as Auditor of
Fiscal Accounts for the U. S. War De­
partment, Seventh Service Command at
Omaha, in preparation for which work,
he completed a special course in Prop­
erty Accounting and Auditing at the
Army Finance School in Baltimore,
Maryland.
M r. Gipson brings to the Bankers
Service Company a rich experience in
bank management, auditing, sales and
supervision.

Northwestern Banker, November, 194B

28

FOR 92 YEARS
SOUND BANKING SERGI CE
'k

Complete

Northwestern Banker, November, 1948


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

Correspondent Facilities

The Aehraska Hankers
Tan
tveHon
m
Four Nationally Known Speakers Will Address the
Fifty-first Annual Convention at the Fontenelle
Hotel in Omaha, November 10th and 11th
EBRASKA bankers going to
Omaha for the annual conven­
tion of the Nebraska Bankers
Association will find another wellplanned meeting when the 51st annual
convention gets under way November
10th at the Hotel Fontenelle. The
convention will last two days, Wednes­
day and Thursday, November 10th
and 11th.
Convention committees, consisting
mainly of Omaha bankers, were busy
late last month making final prepara­
tions for the program. The members
of the general committee on arrange­
ments are:

N

General Chairman,
Henry ( ’.
Karpf, president of the Give Stock
National Bank.
Arthur L. Coad, president of the
Packers National Bank.
W. Dale Clark, president of the
Omaha National Bank.
W. A. Sawtell, president of the
Stock Yards National Bank.
Herbert M. Bushnell, president
of the United States National Bank.
Fred VY. Thomas, president of
the First National Bank.

J. O. Peck, president of the Central
National Bank at Columbus, Nebraska,
will preside over opening sessions of
the convention in his capacity as pres­
ident of the Nebraska Bankers Asso­
ciation. J. R. Kenner, president of
the Thayer County Bank at Hebron,
is vice president, and Austin L. Vick­
ery, assistant vice president of the
United States National Bank of Oma­
ha, is treasurer.
Carl D. Ganz, vice president and
trust officer of the National Bank of
Commerce in Lincoln, and state vice
president for Nebraska of the Ameri­
can Bankers Association, will preside
over the portion of the meeting de­
voted to the election of new A.B.A.
officers for the state.
Four nationally prominent speakers
have accepted speaking assignments.
They include Evans Woollen, Jr.,
chairman of the board of the Fletcher

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Federal Reserve Bank of St. Louis

Trust Company, Indianapolis, and re­
cently elected president of the Ameri­
can Bankers Association; Major Gen­
eral Lewis A. Pick, division engineer
of the Missouri River Division for the
Army Corps of Engineers; former
Nebraska Governor Dwight Griswold,
and D. J. Needham, Washington, D. C.,
general counsel of the American Bank­
ers Association.

National Figures
Midwesterners are familiar with
General Pick, since he is one of the
authors of the Pick-Sloan plan for
development of the Missouri River
territory, the project being designed
to produce greater economic activity
in the upper basin.
Former Governor Griswold has been
in the national limelight during recent
months in his capacity as chief of
the American Mission to Greece. Gov­
ernor Griswold and his party returned
to the United States recently after
completing their assigned mission.
Mr. Needham is familiar to most
bankers as the author of many bulle­
tins and reviews from his office in
Washington where he keeps in con­
stant contact with the changing legis­
lative scene as it affects the nation’s
finance and banking system.
An innovation in this year’s pro­
gram will be a breakfast at 7:30 a. m..
Thursday, November 11th. at the Fon­
tenelle Hotel. The speaker at this
breakfast “ tax session” will be Lau­
rens Williams, a partner in the law
firm of Young and Williams in Omaha.
Mr. Williams is a graduate of the law
school of the University of Cornell
and began bis practice in Omaha in
1931. He is chairman of the commit­
tee on Revenue Law of the Nebraska
Bar Association and is also a member
of the lecture panel of the American
Law Institute.

Annual Banquet
One of the highlights of the con­
vention will be the annual banquet

President,

j . o . PECK
Nebraska Bankers Association

in the grand ballroom at the Fonte­
nelle Hotel on Wednesday evening,
November 10th. A social hour will
begin at 5:00, followed by dinner in
the ballroom at 6:15. Entertainment
and dancing will follow.
Entertainment for the ladies also
has been planned.
Mrs. John R.
Lauritzen, chairman of the hostess
committee, announces that a ladies’
luncheon and style show will be held
Wednesday, November 10th, at the
Blackstone Hotel.
Carl G. Swanson, secretary of the
Nebraska Bankers Association, has
announced that the Fontenelle, which
is headquarters hotel, is unable to
accommodate any more guests for the
convention, but rooms are available
at a number of other Omaha hotels.
Following the usual custom, the
executive committee will meet the day
preceding the opening day of the con­
vention. Following this meeting, the
annual Past Presidents’ Dinner will
be held at the Fontenelle. Tuesday
evening, November 9th.
The resolutions committee also will
meet prior to the convention, with
shorter meetings being held at inter­
vals during convention time. John
D. Stocker, president of the Otoe
County National Bank at Nebraska
City, is chairman of the committee.
Resolutions may be sent to Mr. Stock­
er at Nebraska City, or presented to
him or committee members during
the convention for consideration.
All general sessions of the 51st an­
nual convention will be in the grand
ballroom of the headquarters hotel.—
The End.
Northwestern Banker, November, 1948

30

\ eb ru sk a itnsinvss
^E xcellen t” !
Record Crops and Good Prices Spell Prosperity
For Farmers and Merchants in Cornhusker State
A NORTHW ESTERN BANKER
Survey

* A RECORD YEAR"
By IVAN C. RILEY
President, First National Bank
Fairbury

“ It would be my opinion that the
retail business in this city has been
rather slow for the past short while,
although holding approximately even
with last year. Some cold weather or
moisture, which we need badly, will
bring a definite increase in retail
trade. I would estimate that the fall
and winter business here may exceed
last year, since we had a good wheat
crop in this territory and we have a
better than average corn crop now
being harvested. It is reported that
a very large per cent of the wheat
in this territory still remains in the
hands of the farmers, either on the
farm or stored in terminal elevators.
A large per cent has not been turned
into cash. With this reserve, and the
corn cron coming on, together with
the livestock which will be marketed
during the winter, it seems only logi­
cal that we should experience some
favorable business in this territory,
unless, of course, the price structure
on these agricultural commodities
should drop materially.
“The fall wheat crop looks good,
although it needs moisture. It has a
much better start than the wheat did
last year, although, of course, this
does not insure a crop next summer.
“ It would be my opinion that in
general our farmers are in the best
financial condition they have enjoyed

for many years and, of course, this
situation will be reflected in the local
retail business as, if, and when they
can find merchandise which they need
and want to buy. I believe most of
the retailers are able to obtain a
sufficient amount of goods to hold up
their volume of business.”

"W ONDERFUL CROPS"
By OTTO KOTOUC, SR.
President, Home State Bank, Humboldt

“Richardson county and surround­
ing territory raised the largest corn
crop in its history. A large small
grain and seed crop was also har­
vested. There is an abundance of hay
and roughage. While the hog crop
is below average, cattle on feed will
be above normal. Farm income pros­
pects are bright for the coming six
months. Merchants in the territory
report business better than it was a
year ago and are optimistic for the
first half of 1949.”

"FUTURE LOOKS GOOD"
By H. L. BURDICK
Cashier, Central National Bank
Columbus

“ Retail sales in the Columbus area
are running about 20 per cent higher
than a year ago in dollar volume, and
the indices show that, even when
measured in terms of physical vol­
ume, business is 5 per cent ahead of
the previous year. High activity in
the construction industry continues
with full employment of the laboring

population. In fact, there is a short­
age of labor in this area. The de­
mand for housing does not seem any­
where near satisfied yet, so the out­
look is for continued high activity in
this important branch of business.
“Out in the country the farmers
are harvesting a huge corn crop, one
of the best on record. Although the
prices of grains are below a year ago,
the large yield will compensate for
this and the farmer’s income will re­
main very high. Their cash income
will be high during the next six
months, with many farmers taking
the government loan on corn. This,
together with the high employment
in the towns, indicates that business
will continue very active during the
next six months, with little possibility
of any decline.
“We all know that the cost of the
articles the farmer purchases has
risen during the last year, whereas the
prices of the articles he sells have
declined. The farmer’s margin of
profit is narrowing. The wage earn­
ers in the towns are having difficulty
coping with the high cost of living,
and their savings are on the decline.
Many of these people have had to
borrow from installment loan lenders,
or have dipped into their savings ac­
counts and savings bonds. Very few
savings bonds are sold today in the
smaller denominations to wage earn­
ers. These factors have made busi­
ness men cautious in their outlook to­
ward the future, and justifiably so.
What will happen after the next six
months period rolls by is certainly a
question mark. but. in my opinion,
the next six months will show con­
tinued high activity and good busi­
ness, for the reasons outlined above.”

"A

BRIGHT OUTLOOK"

By l . W. ROSS
Vice President, The National Bank of
Norfolk

BUMPER CROP— Reports from all bankers in the corn-growing areas indicate
that 1948 is showing a record yield.
Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

“To begin with, we have, according
to the best of my information, the
largest corn crop ever grown in this
territory. The hog population is nor­
mal in number and quite a few cattle
are being placed on feed. Consequent­
ly, unless there is considerable depre-

ciation in the value of livestock and
other farm products, we can look for­
ward to a period of good business in
the next six months.
“ Inasmuch as this territory is en­
tirely agricultural, the above about
states the case.”

• CONDITIONS EXCELLENT”
By E. W. ROSSITER
President, Bank of Hartington

“Cedar county (and entire north­
east Nebraska) will gather what is
probably the largest corn crop ever
produced. Our spring pig crop was
large and the fall crop was about nor­
mal. Since Cedar county is frequently
the largest hog raising county in Ne­
braska, this means a lot of hogs will
go to market from this area during
the 1948-49 packing season.
“ Our cattle population has remained
about the same but there will be less
cattle shipped in for feeding than in
prior years. To date, it is 50 per
cent less and what additional cattle
come in will depend on the drop in
feeder prices.
“ Milk cow numbers have materially
increased. More than 2,500 dairy heif­
ers were brought into Cedar county
between 1942 and the end of 1947.
(Note: This is the result of a special
program by the Bank of Hartington.)
“Agricultural and business condi­
tions in this area are excellent. The
marketing of hogs and cattle and the
sealing of corn on the farm will in­
crease the farmers’ income and bank
deposits considerably around or short­
ly after January 1st. Cedar county
bank deposits were among the high 25
counties in the state outside of Lin­
coln (Lancaster) and Omaha (Doug­
las) counties. The backlog of bonds
held by residents in this area is very
substantial.
“However, it appears that ‘spending’
is slowing down. There is less reck­
less buying. Walking up and down
the main business district on a Satur­
day, it would appear that about four
out of five cars are 1948’s or 1949’s.
There has been some building in our
business district and residence dis­
trict, but the high cost experienced
by those who ventured to build is
discouraging others who would like
to do so.”

"EXCELLENT CROPS AND
GOOD EMPLOYMENT"
By A. J. JORGENSON
President, American National Bank of
Sidney

“ I am glad to say that general con­
ditions are exceptionally good from
the standpoint of good crops and em­
ployment. This county produced more
than five million bushels of wheat in
the year 1948, and other crops such
as feed grains and forage, as well as

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Federal Reserve Bank of St. Louis

FEEDER CATTLE— While the outlook is for less feeding o f cattle for market,
indications are that prices will remain good for some time.

beets, potatoes, and beans, all of which
have been harvested and are presently
being marketed at very good prices.
“Business in Sidney and other
towns in our county is fully as good
as in 1947 and prior years. In the
rural sections of our county and ad­
joining counties we note a tendency
towards conservatism, and a feeling
on the part of most farmers and stockmen that prices generally h a v e
reached a maximum and that a grad­
ual lowering of market values is due.
They are generally planning their
operations with that thought in mind.
We hear no criticisms of the prospect
of lower prices for farm products, but
on the contrary most farmers and
stockmen will welcome gradually low­
ering agriculture prices henceforth.”

"FUTURE LOOKS BRIGHT"
By M. D. KELLER
President, The First National Bank
Ogallala

“Business is very good here, crops
have been good, both wheat and corn
are well above averaere yields, fall
seeding of wheat is completed and
wheat is coming nicely on summer
tilled lands. A little dry for continual
crop lands. Beet harvest is coming
nicely, but acreage less than last year.
“Cattle and hog prices have dropped
some recently, but prices are still
good. A good part of the cattle has
gone to market. Outlook for prices
seems to be good for some time to
come on livestock, while feed crops
are tending to a lower level.
“Business houses are enioying a
good trade. However, inventories are
becoming larger and supplies more
plentiful.
“Labor is all very well employed
and there seems to be a shortage in
this field, and wages are generally
well paid.
“We have a large demand for

money, interest rates are getting a
little better and people having money
to lend are getting a little better se­
curity.
“We would say the outlook for
business for the next six months is
very good.”

"OVER-ALL PICTURE IS
GOOD"
By WILEY GREEN
Cashier, Wauneta Falls Bank, Wauneto

“ Several things should be noted. It
has been very dry here this fall and
the sod wheat is not coming up too
good. The summer fallow wheat is
coming up good in spite of the dry
weather. Our corn crop outlook is
fair to good. We had excellent pros­
pects for more corn until we ran into
the period of dry weather which, of
course, will cut the production. Busi­
ness will continue to be good but
those of a marginal nature will de­
cline. Purchases of government bonds
have remained fairly steady with very
few being cashed. In short, we can
stand one or two bad years and after
that it would be anybody’s guess.”

"WE ARE VERY OPTIMISTIC"
By MARK FULLRIEDE
Cashier, The Farmers Bank, Nebraska City

“ Otoe county has been favored with
rne of the best general crop years it
has ever had. After a very poor, slow
start last fall, the wheat took hold and
made far better than an average crop.
Much of it went better than thirty
bushels to the acre and the quality
was all very good. Oats in our county
is only a feed crop and, like the wheat,
the early prospects were poor. How­
ever, it proved to be a good average
crop, giving the farmers more feed
than they will need. Clover and al­
falfa for both hay and seed did very
well this year. There are no large
acreages in our county but practically
Northwestern Banker, November, 1948

32

Nebraska News

all our farmers keep a fair amount
seeded down all the time. Corn is
our main money crop. We had a very
dry June, which we always like to
see, as it makes a much better root
system. There was plenty of mois­
ture in July and the first part of
August. The last part of August and
the first week of September were
again very dry but due to the almost
100 per cent use of hybrids and the
splendid start, the corn came through
in fine shape. It has matured with no
danger from frost and most of it that
is on good ground will go from 60
to 75 bushels to the acre.
“ Since we are entirely a farming

community, all of this means that our
merchants are very optimistic about
business during the next six months.
We have always found out that when
our farmers have money, the city
folks get their share.’"

"FULL EMPLOYMENT AND
BUMPER CROPS"
By EDWARD HUWALDT
Executive Vice President, The Commercial
National Bank, Grand Island

“The reports we are getting on the
new corn crop are even better than
we expected. This applies to dry land
fields as well as irrigated corn. The
recent break in cattle prices has stimu­

lated the flow of feeders to the feed
lots. Rain is badly needed, especially
for wheat. Some fields have not been
planted because it is too dry to put in
the crop. Retail business is on a
somewhat lower level than it was last
spring, but is running ahead of the
same time last year. Employment is
very high in this community, and it’s
almost impossible to get competent,
experienced help. A feeling of cau­
tion and conservatism is noticeable in
nearly all circles. Due to full employ­
ment and bumper crops, we anticipate
no sharp slump in the next six
months.”

"O UTLO OK FAIR TO GOOD"
By ROBERT T. CATTLE
President, The C attle National Bank
Seward

THE NEW APPROVED

P O S T -n -IH E IK
MAIL LIKE A POST CARD

‘ Copyrighted

“Business in retail trade is fair.
Sales have fallen off since August.
Deposits in banks steady, above nor­
mal. Farmers in good financial con­
dition. Loans have increased some,
but below normal for this time of the
year. Very few cattle on feed as yet.
on account of high price feeders and
falling price in fat cattle.
“Outlook for business for the next
six months is fair to good. It could
be very good if world affairs were
settled.”

"PROSPECTS ARE GOOD"
By O. A. RILEY
President, The Hastings National Bank
Hastings

ORIGINATED
BY
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JUST WHAT YOUR CUSTOMERS WANT

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LINCOLN,
Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

NEBRASKA

“Business conditions are good in
this community and we expect them
to remain good for months to come.
This opinion is based, of course, on
the theory that no catastrophe befalls
the nation. Crops are good and farm­
ers are in excellent financial position.
They are not happy over falling prices
of farm produce, but are accepting it
as a natural tendency and proceeding
with their production and purchases
in a normal way.
“ Business in the city is remaining
at levels equal or in excess of last
year in dollar volume with substantial
inventories. It seems that for the
next six months we can expect as good
business as last year.”

"BUSINESS STILL VERY
GOOD"
By L. J. TITUS
President, The First National Bank
Holdrege

“Business, on the average, is about
as high as a year ago although there
are signs of leveling off in both real
estate and boom conditions. With a
better-than-average corn crop business
should be good for the next six
months. We anticipate that all of the
corn will go under seal to Commodity
Credit just as the wheat did this sum­
mer. With the corn loan price less

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

S to c k Y a r d s N a tio n a l B a n k
Omaha, Nebraska
M EM BER O F FEDERAL D EPO SIT IN SU RA N CE C O R P O R A T IO N

Northwestern Banker, November, 1948

34

Nebraska News

than the farmers received for their
corn a year ago, it could be that we
will have a slight recession in business
in this locality in the next six months;
however, business is still very good
and we see no reason to be pessimistic
in the near future.”

"CONDITIONS MOST
FAVORABLE"
By RICHARD W. TREFZ
President, The Beatrice State Bank
Beatrice

“Business conditions around Bea­
trice continue most favorably. We
had the rare combination of excellent
wheat, small grain and hay crops, and

What Does

now the corn crop, all in one growing
season. This lends a very substantial
impetus to our business life. There
is less large scale cattle feeding and
more barnyard activity than in years.
Dairy cattle have decreased since
mechanized operations for the time
being appear more profitable and less
confining.
“The rank and file of our farmers
are getting out of debt and staying
out. There is no trace of land specu­
lation. Whatever land has changed
at what appears inflationary prices
was bought on a cash basis to round
out existing holdings. We are begin­
ning to notice the first signs of re­

"(p&aai o# Vftind" Cost? . . .

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N A T I O N A L I N S U R A N C E CO MPA NY
of Omaha, Nebraska

Wm. R. Snyder, Pres. ★ J. Earl Thompson, Vice-President ★ Robt. J. McKee, Secy.-Treas.

Not The
Originators
But The

PERFECTERS
Of The
RETROSPECTIVE
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As the official experts of the Nebraska Bankers
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since 1881 in timelock, safe and vault inspection.

O u r 2 4 -H o u r C o n tin u o u s S e rv ic e G u a ra n teees Y o u
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F. E . D A V E N P O R T & C O .
OMAHA
Northwestern Banker, November, 1948


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

luctance to pay exorbitant prices for
second hand machinery.
“The new wheat is greening up nice­
ly and looks most promising.”

"BEST IN MANY YEARS"
By J. G. BREWSTER
Cashier, The Tri-County Bank, Stuart

“From the standpoint of production,
this year has been the best in many.
We produce mostly cattle and hay.
wtih some farming (mostly for feed).
Our hay crop was probably not quite
average, due to early dry weather, but
small grain went fairly well. Corn is
very good for this section and our
grass for pasture the best in years.
As a consequence our feeder cattle are
weighing more than usual and are
selling at a good price.
“There is a feeling that the farmers
and ranchers face markets that will
be gradually lower as a consequence
of the large crop of both small grain
and corn, but their indebtedness is
not large and there is a very good
reserve of feed, both hay and grain.
Prospects for the next six months
seem good.
“Our volume of retail business is
off a little in some lines but is still
generally satisfactory. There seems
to be some uncertainty as to coming
conditions which has deterred buying
and this uncertainty may be dispelled
by the election.”

"BEST CROPS IN HISTORY"
By GEORGE T. HEDELUND
Vice President, Washington County Bank
Biair

“ The agricultural picture is very
good. All in all, we have raised the
best crops, both small grain and corn,
in the history of this territory. Oats
turned out to be a very good crop,
yields of hay have been extra heavy,
wheat was somewhat spotted and
there was a considerable amount of
winter killing, but still it was an aver­
age crop of wheat. Corn is by far the
best crop we have ever raised here.
Yields up to 120 bushels per acre have
been reported and 80 to 90 bushel
yields are quite common.
“With prices good and a loan price
on corn of $1.37 per bushel, our farm­
ers are in the best condition they have
ever been. Naturally, since the towns
are almost entirely dependent on the
agricultural trade, business in general
has been very good. Volume of trade
is high in our area, probably higher
than last year.
“ In spite of an abundance of all
kinds of feed, I would estimate that
there is 10 per cent less cattle gone
out for feeding than a year ago. The
number of hogs to come to market
is somewhat larger than a year ago,
but still way below the usual number

35

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Federal Reserve Bank of St. Louis

ON TH E H O O F

36

Nebraska News

of hogs raised in this territory. We
look for the amount of corn placed
under loan to be the largest since
1941, as all indications are that the
cash price will be below the loan price.
“ In Blair the housing situation is
still tight, in spite of the fact that
over 50 new houses have been built
in the last year. Business construc­
tion has been average. There have
been several new business buildings

in the past year and several remodeled.
“ In general, conditions in this terri­
tory are good.
“Looking ahead six months, it would
seem that there is nothing serious in
sight to upset conditions too much.
While it is likely that farm prices
will see some recession, it doesn’t
seem likely that the decline will be
too drastic. Undoubtedly, somewhere
in the future prices are due for a

considerable downward adjustment,
but it doesn’t seem to me that it is
apt to come in the next few months.”

"W HEAT PRICE UP"
By J. I. CHRISTIANSEN
President, The American National Bank
Kimball

“ Business is tapering off just a lit­
tle in this section. Perhaps it is more
of a cautious move on everyone’s part.
I believe business will move along
as usual over the next six months.
Wheat price is the barometer here and
it’s some over the support price. That
is what they expect for this crop and
as wheat moves along those price
lines it will continue to move to mar­
ket.
“ It is rather dry in this section for
this time of year, but fall wheat is
looking very good. The ground will
be amply covered.”

U.lDi«* OFTHt Wf Sr

"CONTINUING GOOD
BUSINESS"
By G. H. LARKIN
Vice President, McDonald State Bank
North Platte

“We have had a better than normal
small grain crop. We are going to
have the largest corn crop ever har­
vested.
“ The alfalfa used for alfalfa dehy­
drated meal was about an average
crop, but the price is low this year.
“We have more cattle than average
years and some recent activity in feed­
ing. The early pasture was poor but
the late pasture was very good. The
hay crop is about average and farm­
ers and ranchers have plenty of feed.
“The building is about average, with
materials scarce and of very poor
quality. Good skilled labor is hard to
obtain.
“ Merchants’ inventories are nearly
up to normal with some articles be­
coming sticky.
“Bank deposits and loans are the
highest in history. Surplus money
and spending for luxury is down. I
would say that business conditions in
general are good and look reasonably
good for the next six months.”
-—The End.

J'honJtisU L fU voA . (pcu Jw L
Up the m uddy M issouri from St. Louis and New Orleans
came the great white ships o f the frontier river fleet, bring­
ing gunpowder and gingham , trade goods and tobacco fo r
distribution to Santa Fe, the gold fields o f California and the
m ining cam ps o f Colorado. Forerunners o f an ever-grow­
ing traffic, they helped lay the foundation fo r Kansas City,
trade center o f the great Southwest.
In serving Kansas City and its far-flung trade territory fo r
over a half-century, the Inter-State has gained a vast know l­
edge of the area's needs, possibilities and resources. That
knowledge and experience is always at the disposal o f the
Inter-State’ s correspondents— a tangible and worthwhile ad­
vantage you are invited to use to the fullest extent.

the

With Brainard Bank

In t e r -S tate Na t io n a l Ba n k

UVISTOCR IXCHANOt » • « .

Eugene L. Coufal has been em­
ployed by the Bank of Brainard, Ne­
braska, according to an announcement
last month from President Charles
Novak. Mr. Coufal has recently com­
pleted advanced business training at
an Omaha business college and is a
1947 graduate of Brainard high school.

l*TH . AM» OCNtSCC STS.

cA s& u a j
Member of The Federal Deposit Insurance Corporation

Did you know there’s a gap in your Cash Letter
protection that you could “ drive a truck through?”
Ask us how to bridge it without costing you a
cent.
F IR S T

N A T IO N A L B A N K

B U IL D IN G

Northwestern Banker, November, 1948


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

C H IC A G O

Scarborough & Company
Insurance Counselors
3, IL L IN O IS

STATE

4325

to Banks

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Modern banks recognize the necessity for
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Many banks near you have modernized
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Federal Reserve Bank of St. Louis

Class 1900
Addressograph
Machine Speed 100 addresses per minute.
Models in this class of electrically-driven
Addressographs offer users the full range
of versatility of Addressograph methods,
reducing expense and protecting profits
and revenues in all kinds of business.
Northwestern Banker, November, 1948

38

Nebraska News
to go to the bank. Stares and sup­
pressed smiles marked his entrance.
He made a quick inventory. Every­
thing seemed in order.
The teller fixed his glance at the
business man’s collar level. “Nice
effect,” he murmured.
The business man clutched at his
collar. He had forgotten to remove
the lei of petunias, asters and cosmos
pinned there by his two small daugh­
ters.

EBRASKA’S biggest debenture
issue is to be put up for sale No­
vember 16th.
The Northwestern Bell Telephone
Company on that date is to sell the
debentures to retire, in part, indebt­
edness resulting from additions to its
five-state system, it was announced
at the Omaha headquarters by Rus­
sell J. Hopley, president of the Com­
pany.
From January 1, 1946, through last
August, the Company’s outlay for
construction was $90,000,000.
Sale of the debentures is North­
western Bell’s second long-term issue
in its history.
In the first six months this year,
the Company’s construction expendi­
ture of $27,992,000 was greater than
the total for any entire previous year
except 1947.
Plant investment now is $289,000,000 and there is $125,000,000 in capi­
tal stock. The number of phones in
use has grown to 1,376,228.
The debentures are to be sold on
bids taken in New York.

N

Mr. and Mrs. Dale Clark’s son-in-

law and daughter, Mr. and Mrs. John
Schirding, of Petersburg, Illinois,
sailed recently from New York on the
Brittanica for a six weeks’ trip to
Scotland and Denmark. Mr. Clark is
president of the Omaha National
Bank.

Northwestern Banker, November, 1948


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

A m erica n Institute of Banking
classes started in Omaha recently at
the Boyles Business College. The
weekly sessions in five courses are
open to all Omaha bank employes.
They extend through next May.
Instructors are William A. Sawtell,
Jr., son of the president of the Stock
Yards National Bank of Omaha; Dr.
John P. Begley of Creighton Univer­
sity; George E. Winslade, banker, and
James D. Tyson and Alvin H. Goeser,
both of the University of Omaha.
Omaha city officials got a kind
word recently from the Omaha Na­
tional Bank. In a letter to the City
Council, President Dale Clark ex­
pressed appreciation for cooperation
during the remodeling of the bank
building at Seventeenth and Farnam
Streets.
Lester E. Souba, assistant auditor
of the Live Stock National Bank of
Omaha, attended the two weeks
School of Banking at the University
of Wisconsin. He is president of the
Omaha Chapter, American Institute
of Banking.
Nebraskans on the faculty of the.
school included Sumner Slater, assist­
ant trust officer of the Omaha Na­
tional Bank, and Richard Trefz, presi­
dent of the Beatrice State Bank.

Omaha scene: The business man
spending his vacation at home had

Los Angeles has contributed to the
Omaha Community Chest campaign.
Chairman E. N. Van Horne (presi­
dent of the Federal Land Bank of
Omaha) buttonholed an insurance
salesman from California while he
was visiting the home office in
Omaha.
Five minutes later Mr. Van Horne
had a check for $100.
The claim of two brothers to about
8 per cent of the stock of J. L. Brandeis & Sons, Omaha department
store, was confirmed recently by the
Nebraska Supreme Court.
The court upheld an Omaha District
Court decision that Walter Brandeis
and Loyal B. Cohn are entitled to onesixth shares of a block of stock left
by H. Hugo Brandeis when he died
in 1912. The remainder of the ,stock
goes to E. John Brandeis, president of
the store since the death of George
Brandeis.
Jim Stewart, son of Mr. and Mrs.
J. T. Stewart, HI, has joined the Navy

and is at San Diego, California, for
training. His father is vice president
and cashier of the First National
Bank of Omaha.
'' L
Nelson Delavan, 62, retired Farm
Credit Administration executive at
Omaha and former banker at: Mapleton, Iowa, died recently in Sioux City,

Nebraska

Iowa. He joined the Federal Land
Bank of Omaha in the early 30’s. His
wife, Maude Smith Delavan, is au­
thor of “ The Rummelhearts of Rampler Avenue” and other fiction. A
daughter also survives.
Mr. and Mrs. T. L. Davis have re­
turned home from Lake Miltona, near
Alexandria, Minnesota, where they
spent the summer at their cottage
at the Minnesouri Angling Club. Mr.
Davis is chairman of the board of the
First National Bank of Omaha.
Mr. and Mrs. John M. Douglas and

their children, John, Jr., George and
Rachel, returned recently from a va­
cation at Three Lakes, Wisconsin,
where they stayed at the Rod and
Gun Club at the cottage of Mrs.
George Sumner, mother of Mrs. Doug­
las. Mr. Douglas heads the Omaha
investment banking concern bearing
his name.

A. Bishop who resigned recently after
22 years of service.
The following stockholders were
elected directors: C. L. Bishop, Har­
old Olson, Henry Sturek, A. O. Auserod, Robert Martin, Walter Plugge
and A. W. Hoefener.
Afterwards, the board of directors
held their meeting and A. W. Hoefe­
ner was elected vice president for the
balance of the year. No change was
made in the office of the president
and cashier. A. O. Auserod was re­
tained as legal counsel for the bank.
The board of directors viewed the
amount of surplus cash on hand and
authorized purchase of another $100,-

News

39

000 of government bonds, making a
total of $200,000 at this time in gov­
ernments.
It was also decided at this meeting
to make application for membership
to the Federal Deposit Insurance Cor­
poration.

Beatrice Promotion
L. E. Crittenden has been elected
president of the State Savings and
Loan Association of Beatrice, Nebras­
ka. The board of directors unanimous­
ly chose him to succeed the late E. L.
Havelone.
Mr. Crittenden has been secretary
of the association since 1936. He

Mr. and Mrs. Lawrence Brinker are
back home after six weeks at their
cottage on Lake Miltona, Alexandria,
Minnesota. Mr. Brinker is an Omaha
investment broker.

Elect Vice President
A special meeting of stockholders
of the Bartlett State Bank, Bartlett,
Nebraska, was called by President C.
L. Bishop last month for the purpose
of electing a board of directors for the
remainder of this year and electing
a vice president to replace Hubert

SYM BO L

OF

S E R V IC E

IN VESTM EN T
S E C U R IT IE S

Tenth and O Streets in Lincoln, Nebraska, is a landmark.

1. Government bonds, all issues

For seventy-seven years, on that site has stood the First
National Bank of Lincoln.

2. Municipal

and corporate

bonds

3. Listed and local stocks

v
Underwriters — Distributors
Dealers

f

THE NATIONAL COMPANY
OF O M A H A
500 First National Bank Bldg.
Members
Chicago Stock Exchange


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Federal Reserve Bank of St. Louis

During that time there have been m any changes wrought
in our services, but our correspondent banks have found
no change in the careful, thoughtful, helpful attitude of the
personnel of this institution.
An account in the First National Bank of Lincoln will afford
you the full measure of our 77 years of experience in
Nebraska's Capital City. M ay we serve you?

THE FIRST ÜUMUL Bt\k lit ITUU
1

L IN C O L N ,

NEBRASKA

M em ber F e d e ra l D eposit Insurance Corporation

Northwestern Banker, November, 1948

40

N ebraska N e w s

joined the company in 1914 as a book­
keeper. He is a past president of the
Nebraska League of Savings and Loan
Associations and active in Beatrice
civic affairs.
Elwood L. Purdy of Wymore was
named secretary and E. C. Hancock
treasurer at a later meeting of the
association’s directors.
Mr. Purdy has sold his real estate
and insurance business in Wymore to
Jesse Benson, formerly of Aurora,
who recently has been traveling for
Aetna Insurance Group with head­
quarters in Omaha.
Mr. Hancock has been serving as
assistant secretary of the association.

He will continue in that position as
well as being treasurer. From 1940 to
1947, with the exception of two and
one-half years in the army, he was
with the state banking department,
serving as an examiner of building
and loan institutions. Since April of
last year he has been with the Bea­
trice institution.

J. C. Price
J. C. Price, 63, manager of the real
estate departments of the Lincoln and
Fremont Joint Stock and Land Banks
for 18 years, died unexpectedly at his
farm home in Unionville, Iowa, last
month.

(4 e

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Mr. Price died shortly after return­
ing to his home from Lincoln where
he had visited his daughter, Mrs. M.
R. Reller.
He and Mrs. Price moved to Iowa
last spring. Mr. Price served both
Nebraska banks from 1930 to last
January 1st.
Familiarly known as Colonel Price,
a title gained through many years’
experience as an auctioneer of pure­
bred stock and real estate, Mr. Price
served as bank auctioneer of real es­
tate while in Lincoln. Mr. Price was
founder of the Farmers’ Club and at­
tended the First Church of Christ
Scientist. Before moving to Lincoln
he served as manager of mortgage
loans and superintendent of farms for
a St. Louis, Missouri, life insurance
company. Earlier he managed numer­
ous stock ranges in Iowa.
Surviving are his wife, Mrs. Eliza­
beth Price, Unionville; three daugh­
ters and two sons.

Begin Remodeling
Remodeling of the Chambers State
Bank at Chambers, Nebraska, was be­
gun last month. An additional room
is being built on the north end of
the building and a new vault also is
being installed.
The remodeled building is planned
as a memorial to the late Edward
Adams, who founded the bank in
1901. His eldest son, Leo T. Adams,
is president of the bank; his widow,
Mrs. Sarah Adams, is vice president;
another son, Glen H. Adams, is cash­
ier, and Mrs. Faye Dierking is as­
sistant cashier.

with this dominant
thought in mind . . .
rrT o best serve our
m any banker friends
b y building a check
perforator w ith m ore
outstanding features
than any other perfor­
ator yet m ade.”

Here are some of the principal advantages:
•
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Compact, sturdy, portable,
increases check filing cabinet capacity;
makes it easier to file after perforation;
aids in reducing number of misfiled checks;
is easier to operate;

This institution, one of Nebras­
ka's oldest investment firms,
extends greetings to members

• gives m axim um legibility of information on checks;
• has greater simplicity and adaptability;
• costs V2 the price of big bulky machines.

Cummins Engineers accomplished all this with the aid of the
.045 Punch. W e w ill be mighty pleased to show you how.

of the Nebraska Bankers A sso ­
ciation.

•
May you have a very
successful
convention
in Omaha, November

10*11 !

td e

•

VISIT OUR EXHIBIT
NEBRASKA BANKERS’ CONVENTION
H O TEL FON TEN ELLE, NOVEMBER TO AND 11

Y o u w ill find out why banks have bought
more than 3,000 Cummins 300 Perforators.
SINCE 18 8 7
O R IG IN A T O R S O F P E R F O R A T O R S

A lso ask to see th e w o r ld ’s
best e n d o rser —
C U M M I N S 250 .

CUMMINS BUSINESS MACHINES CORPORATION
Formerly CUMMINS PERFORATOR

4762 Ravenswood Avenue

Northwestern Banker, November, 1948


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

Chicago 40, Illinois

•

•

Smith, Polian&Co.
424 Omaha National Bank Building
Formerly
Smith, Landeryou & Co.
Underwriters, Participating Distributors
and Dealers in Railroad, Public Utility
and Industrial Bonds and Stocks

Harry F. Smith, President
Harold O. Polian, Vice Pres.-Treas.
F. Arthur Flodeen, Statistician
J. M. Kadlecek, Sales Manager
Bell System Teletype 180-181
Telephone JAckson 5065

Nebraska

Joins Bankers Service
Company
Harry B. Gipson, who has had many
years of experience in negotiating the
sale of banks, has joined the Bankers
Service Company o f . Des Moines as
vice president.
Mr. Gipson is an experienced coun­
try banker. For many years he was

News

41

Coleridge in 1899 and had resided
there since. He founded the Coleridge
National Bank in 1902 and had been
its president since that time.

George A. Gray
George A. Gray, 79, president of the
Coleridge National Bank at Coleridge,
Nebraska, for 46 years, died at his
home.
Mr. Gray was born December 9,
1868, at Ardee, County Louth, Ireland.
He came to the United States and to

Promoted at Holdrege
Two World War II veterans have
received promotions to the officer staff

iO s k o m s L
To all Bankers at the Om aha Convention of the
Nebraska Bankers Association. W e, of the
Commerce, will be pleased to meet
you at the convention.

NATIONAL BANK of COMMERCE
LINCOLN, NEBRASKA
46 years at 13th and O Streets

r

M em b er F e d e ra l Deposit Insurance Corporation

H A R R Y B. GIPSON
With Bankers Service Company

the managing executive of banks at
Odell and Rising City, Nebraska, after
which he served as a state bank ex­
aminer. For nine years, 1918-1927, he
was identified in an executive capacity
with The Charles E. Walters Com­
pany of Omaha.
In 1928 Mr. Gipson again became
identified with the State Department
of Banking in Nebraska and for nine
years, 1928-1937, was associated with
the receivership division in the liqui­
dation of state banks. In January,
1938, he became executive vice presi­
dent of the Coleridge National Bank
of Coleridge, Nebraska.
Since June, 1941, Mr. Gipson has
been employed as a government audi­
tor, including five years as auditor of
fiscal accounts for the U. S. War De­
partment, Seventh Service Command
at Omaha, in preparation for which
work he completed a special course in
property accounting and auditing at
the Army Finance School in Balti­
more, Maryland.
Mr. Gipson brings to the Bankers
Service Company a rich experience in
bank management, auditing, sales and
supervision. Both Vice President Gip­
son and President Henry H. Byers
will attend the Nebraska Bankers Con­
vention in Omaha on November 10th
and 11th and are looking forward to
meeting a lot of old friends.

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

Ow l Ç&tÂSLApûnd&MJL Ssüw ksL ÿ !¿
o n . jcl J jm q jtm xL
J im w h jd q s L

ßoA&fL

J P u fw u q k .
jth h u

J â OjCÙL JfLkhihfu^.

•

First National B an k
St. Joseph, Missouri
Member Federal Deposit Insurance Corporation

Northwestern Banker, November, 1948

42

Nebraska N ew s

by the First National Bank of Holdrege, Nebraska. Russell L. Harris has
been named assistant vice president
and Glen J. Anderson has been named
assistant cashier.

Coops Meet in Lincoln
More than 150 representatives of
75 cooperative credit associations in
Nebraska were in Lincoln last month
for the tenth annual convention of
the Nebraska Association of Co-opera­
tive Credit Associations held at the
Cornhusker Hotel.

M O DERN FIXTU RE CO.
“ S in ce 1908”

H AN K

F IX T U R E S

ittii* C h am p a St.
D e n v e r 4.

P h o n e M A in 4 789
C o lora d o

The delegates were welcomed by
Byron Dunn, president of the National
Bank of Commerce, Lincoln, who em­
phasized the need for coordination of
effort between the various associations
in the state. J. C. Wisda, Lincoln,
president of the state organization, re­
sponded to the welcome and presided
at the convention meeting.
During the afternoon the delegates
attending the convention heard three
addresses on phases of credit and
banking, followed by a discussion pe­
riod.
The speakers during the afternoon
session were Albert R. Stelling, assist­
ant cashier of the Live Stock National
Bank in Omaha; Wally Keenan, presi­
dent of Van Sant School of Business,
Omaha, and Carl Ganz, vice president
of the National Bank of Commerce in
Lincoln.

Bank Women Elect
The Association of Bank Women,
the only national organization of ex­
ecutive bank women in the country,
ended its 26th national convention in
Detroit with installation of new offi­
cers and presentation of the Jean
Arnot Reid Award.

Tax Exempt Income Is Desirable
We Sell Tax Exempt Municipal Bonds

Robert E. S chweser C o.
208 South Nineteenth Street

(B c m k o A A

a n d

O m aha, Nebraska

J h sd h

J jx d is iA

are cordially invited to The Model
Rooms and Furnished Houses at

Orchard & Wilhelm Co.
COMPLETE HOME FURNISHINGS
Sixteenth and Howard Streets

O m aha

MUNICIPAL BONDS
CORPORATION BONDS and STOCKS

JOHN DOUGLAS & COMPANY, INC.
Omaha, Nebraska
530 Insurance Building

Northwestern Banker, November, 1948


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

Phone: Webster 2281

M A R IO N E. M A TT SO N
Vice President

Mrs. Bernice D. Parks, assistant
treasurer and member of the corpo­
ration, the Provident Institution for
Savings, Boston, was elected presi­
dent. Miss Marion E. Mattson, assist­
ant cashier of the Northwestern Na­
tional Bank of Minneapolis, was
elected vice president.
Miss Mattson began her banking ca­
reer in 1922 as a stenographer in the
Northwestern National Bank and was
secretary to the senior vice president
for four years. After working eight
years in the women’s department she
became manager of the central steno­
graphic division, which position she
held for eleven years. She was elected
assistant cashier in 1947.
Eight regional vice presidents were
chosen. Representing the Mid-West
Division is Mrs. Esta Conn, assistant
cashier, Security Savings Bank, Mar­
shalltown, Iowa, who was re-elected.

BANKERS YOU KNOW
(Continued from page 26)
a Shriner. He is a registered Re­
publican.
Visitors to M r. K a r p f’s hom e do not
find it difficult to discover his hobby.
In the rear of the K a rp f hom e he
maintains a garden throughout the
sum m er and taking care of it and the
beautiful lawn surrounding the hom e
provides h im with relaxation.

us
A d v e rtise m e n t

N

e b

r a

s k

a

" I f of I of* If oi»or** Hanks
It is an honor to be listed among the HONOR ROLL BANKS, It indicates that the
bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital

TO W N
A in sw orth ......
A rapa h oe........
A rlin gton .......
A u rora ___ __
Beem er............
Broken Bow...
C latonia..........
C rete________
C rete________
D alton...........
E d g ar..............
E lgin ...............
Elk Creek......
E m erson.........
E w in g .............
Fairbury.-......
F airbury.........
F a irm o n t......
Falls C ity......
Franklin.........
F rem on t.........
F u llerton ........
G ibbon..........
Grand Island.
H astings.........
H ayes Center.
Hay Springs..
H ebron............
H em ingford...
Hickm an.........
H ooper............
H um boldt:.....
Kenesaw ........
K eyston e........
K ilg ore ...........
Laurel.............
L eig h _____ __
Lincoln............
L in c o ln ..........
L odgepole___
M adrid............
M cC ook__ ___
M illard............
M orrill............
Oakland..........
Om aha............
Omaha_______
Om aha_______
Om aha............
P axton ............
Plattsm outh. .
Ponca..............
Purdum ..... .....
R ising City....
Schuyler.........
S cotia..............
Scribner..........
Sew ard............
.Seward............
S idney.............
Spencer...........
Sprin gview ....
Stanton.........
Stanton...........
Strom sburg....
Tilden..............
V a lley ..............
W ood River....

Y utan ..............

r h e banks listed on this page are som e o f
Nebraska.
position.

the

outstanding

R oll”

Banks

in

T h ese banks will be especially glad to handle any collections, special credit

reports or oth er business in their com m u n ities w hich you

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

“ H onor

B y careful m anagement and sound banking th e y have achieved this enviable
m ay entrust to them .

C orre­

spon den ce is invited.
BA N K
O FFIC E R
Com mercial National Bank...................................... H. G. T h orley...........
Citizens State Bank......................... ......................... R. F. E m ett................
A rlington State Bank...............................................H arry H eiliger .......
First National Bank.......... ...................................... Frank M. F arr.........
First National Bank.......... .............. ....................... E. H. Sutherland.....
Nebraska State Bank................................................. C. H. Row an..............
Farm ers Bank .............................................................. E. J. Chittenden......
City National Bank..................................................... B. F. A ron .................
Crete State Bank ... ................................................. Thomas J. A ron .......
Dalton State Bank... ............................................. .. R. F. Buchanan......
Security State B a n k ..................................................E, E. H edgcock......
Bank o f E lgin .............. ............................................... Geo. A. W rig h t.........
State Bank o f Elk Creek ............................
R. A. K ovanda.........
First National Bank........................................
F. A. M ieras.............
Farm ers State Bank..............................
...S, W. B rion................
The Fairbury State B a n k ....................................... Irl Else ......................
First National Bank...............................
Ivan C. R iley...........
.Farm ers State Bank............................. ..................... C. F. Tous..................
..First National Bank.................... ..............................Geo. R. F roehlich.....
Franklin State Bank ...... ................... ...................P. L. Slocum .............
Stephens N ational Bank.......................... ................J. Guy E dloff............
First National Bank.....
............................. E. M. Black...............
E xchange Bank ....................... .......... ....................... Glen T. G ibson.........
First National Bank.... ................................... .......... I. R. A lter..................
The H astings National Bank.......................... ....... Charles E. D eets.....
First National Bank................................................... 11. M. Counce..........
N orthwestern State Bank........................................ R. G ustafson ...........
Thayer County Bank.................................................J. R. K enner.............
Bank o f H em ingford......... .......... ........ .................. Y . H. Seaton..... ......
..First State Bank................................................... .. .W, R. Judah...........
First National Bank................................................... G. H. Looschen........
Home State Bank................................................... ....Glenn D. Jenkins.....
Adam s County Bank................................................... S. H. Itzen..................
Bank o f K eyston e....................................................... R. (). Cole..................
Farm ers State Bank...................................................H. L. Cam pbell.........
Security National Bank.......................................... C.
W. Fahnestock..
Bank o f Leigh
...................................................... G eorge C. K um pf. ..
The First Trust Co. o f Lincoln, N ebr..................S. C. W augh ...........
..National Bank o f C om m erce.................. .............. A lbert A. H eld........
First State Bank......................................................... A. C. Peterson........
Security State Bank...................................................W. W . A llen.............
First National Bank......
.... ....................... Rolland Larm on .....
Farm ers State Bank.... ............................................ G.
E. N elson .............
First National Bank..................
......................... R.
T. C ovin gton .......
Farm ers and M erchants National Bank ........C.
C. N eum ann......
First National Bank o f Omaha................................J. T. Stew art III....
Live Stock National Bank........................................H. C. K a rp f................
The Omaha National Bank............................. ........ W . D. Clark.............
I nited States National Bank................. ............ A.
L. V ick ery............
Bank o f Paxton.... .................... .................................. P eter Eginton III...
Plattsm outh State B a n k ................. .......... ............ C. J. Schneider.........
Bank o f Dixon County...............................................F. R. K in gsbu ry____
Purdum State Bank................................................... J. F. M oody............
Farm ers State Bank.............. .......... ..........................H. F. Garhan............
The Schuyler State Bank........................................ Joseph M. Rogers..
State Bank o f S cotia................................................. Clarence Sixel .........
Farm ers State Bank..... ........................................... ..Arthur H. Shultz.....
Cattle National Bank.......... .......... .......... ................R obert T. Castle........
Jones National Bank............... ................................ Velma M. Madison
Am erican N ational Bank.... ...... ..............................A. J. Jorgenson........
Spencer State Bank................. ...... .................... ...... Gus Bentz..................
F irst N ational Bank...................................................E.
C. L ogan ........... .
F irst National Bank........................................ .......... Leo Nixon
Stanton National Bank.............................................James Zoubek ..........
Strom sburg Bank ..................................................... E. C. N ordlund.........
Tilden Bank ........... ................................................ . J, J. R yan .................
Bank o f Valley.. ...........................................................T. F. Green. .............
Bank o f W ood R iv e r ...... .................................... E. C. H uxtable.........
Bank o f Y utan...........................................................H. H. P eters..............

CAPITAL
.$

50,000
25.000
30.000
50.000
25.000
50.000

20.000

50.000
50.000
25.000
25.000
25.000
15.000
30.000
25.000
50.000
150.000
25.000

100.000
50.000
125.000
50.000
30.000
300.000

200.000
25.000
50.000
40.000
25.000
30.000
50.000
50.000
25.000
25.000
15.000
50.000
25.000
400.000
600.000
25.000
25.000

100,000
37,500
25.000
60.000

SURPLUS
PROFITS
$

65,093
44.000
40.000
69.000
52.000
90.000
25,009
56.000
74.000
40.000
32.000
43.699
29.000
64.000
35.000
116,705
283,295
25.000
160,000
81.000
230.000
90.000
38,345
850.000
335.000
43.000
67.000
71.000
47.000
46.000
132.000
61.000
36,990
32.000

20.000

91.000
38.000
448.000
1.350.000
43,500
36.000
323.000
40.000
93.000
156.000

. 2,000,000

2,000,000

500.000
. 2,500,000
. 1,500,000
25.000
50.000
35.000

2.280.000
5,642,000
2,672,702
38,642
250.000
51.000
43.000
46.000
105.000
28.000
64.000
61.000
116.000
144.000
48.000
25.000
270.000

20.000

30.000
70.000
25.000
40.000
50.000

100.000
130,000
25.000
25.000
50.000
50.000
30.000
25.000
25.000

10.000

25,000

110.000
68.000
78.700
34.000
37.000
35.000

44

Nebraska N ews

T hum bprint E n d n rsrm rn t l 0lun
|F YOU walk into the offices of the
I Protected Check Corporation of
America, 11 South La Salle Street,
Chicago, you will hear the story and
be given a personal demonstration of
the use of the “ Invisible Thumbprint
Endorsement Plan” which is being
used by banks and mercantile organi­
zations throughout the United States.
Elwood M. Brooks, president of the
Central Bank and Trust Company of
Denver, developed the idea after ex­
tensive research.
The plan is the answer to the prob­
lem of forgeries, individuals with “ no

S t.

J o s e p h

s

accounts” and checks issued where
there are not sufficient funds. Rec­
ognizing that millions of dollars were
being lost by business men and bank­
ers honoring these checks, Mr. Brooks
utilized the knowledge of his many
years in the banking business, the
aid of law-enforcement agencies and
the experiences of his commercial
depositors.
Armed with the information that
there are 109 million sets of finger­
prints on record with the F.B.I., Mr.
Brooks reasoned that since the Ameri­
can people are conditioned to finger­

O l d e s t

printing, the “ Know Your Endorser”
practice of bankers could be modified
for use by business men in their
every-day transactions. He substi­
tuted a simple physical description of
the endorser and an invisible thumb­
print to be placed on the reverse side
of any bank check. This plan made

B a n k

Miss Helen Murray and W illiam
J. Cannon, Jr., advertising and pub­
licity director of the Protected
Check Corporation of America, dem­
onstrating the use of the “ Invisible
Thumbprint Plan” adopted by many
banks and business institutions.

any person desiring to cash a check
as well known as an old friend.
Shown in the picture accompanying
this article is Miss Helen Murray plac­
ing her thumb on a check while

GREETINGS

You can always count on us
to do everything we can
to cooperate with our
banker friends
TheFriendly

AMERICAN NATIONAL
BANK
ST. JO SEPH , MISSOURI
Member Federal Deposit Insurance Corporation

Northwestern Banker, November, 1948


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

to

NEBRASKA BANKERS
ASSOCIATION
A s you meet in O m aha,
November 10-11 for your
Annual Convention

Monroe Calculating
Machine Company, Inc.
423 So. 15th Street
OMAHA, NEBRASKA
1342 P Street
LINCOLN, NEBRASKA

MONROE ACCOUNTING
MACHINES FOR
BANKS

Nebraska

William J. Cannon, Jr., advertising
and publicity director of the Protected
Check Corporation of America, holds
the pad which contains invisible ink.
In order to present a complete serv­
ice for use at all points where checks
or money is handled, the plan oper­
ates as follows:
1. A very attractive decal, about six
inches in diameter, is displayed on the
entrance of the place of business of
the subscriber. This symbol of pro­
tection serves as a warning to “crooks”
that fingerprints will be required for
the cashing of checks, acting to deter
their efforts.
2. Complete supplies required for
operating the plan are provided, in­
cluding a plaque for interior display
to repeat the warning to dishonest
persons.
3. When a stranger presents a check
for payment or cashing, simple de­
tails of his or her physical description
are entered in spaces provided by the
endorsement stamp.
Also, an invisible thumbprint, name
and address are entered. No dishon­
est person attempting to cash a
check will submit to this part of the
plan, since it is well recognized that
a thumbprint is positive identification.
4. The subscriber then deposits the
check in the bank in the regular man­
ner.
5. Should the check be returned for
any reason then, at the option of the
subscriber, it may be sent to the Pro­
tected Check Corporation Investiga­
tion Division for collection. If this
action is taken within 48 hours after
its return from the bank, and it has
been properly processed in accordance
with the plan as prescribed, the cor­
poration then prosecutes its collection
at no cost to the subscriber.

New Officers
Guaranty Trust Company of New
York announces the appointment of
Alexander N. Gentes as a vice presi­
dent and of John R. Doty as an as­
sistant secretary, both in the foreign
department of the company’s main
office.

Sound-slide Film
A 30-minute sound-slide film, pic­
turing the Westinghouse Equity Plan
of financing of radios and appliances
by local banks has been prepared by
the Retail Finance Division of the
Westinghouse Electric Corporation,
Pittsburgh, Pennsylvania.

News

45

The film describes in detail how a
bank can receive protection through
the plan’s wholesale repurchase agree­
ment and profits through its suggested
retail financing arrangement, as well
as the benefits of its new low cost
insurance features. It will be made
available to banks without charge by
mid-November.
Designed to show banks how to put
the plan to work, the film depicts a
typical boardroom meeting in which a
Westinghouse representative discuss­
es every aspect of the program with
three of the bank’s officers. Point by
point the entire plan is clearly and
succinctly reviewed by the representa-

9+ t JU + tool+ i— V lie, G o+ tU + te+ dcd—

W here a Correspondent
relationship means
SER V IC E

TH A T

SATISFIES

Q dntinental |s|ational
LIN CO LN
Member Federal Deposit Insurance Corporation

Will Consider Stock Increase
The directors of The First National
Bank of Chicago, at a meeting last
month, called a special meeting of the
stockholders of the bank for Tuesday,
December 21, 1948, to vote on the ques­
tion of increasing the capital stock of
the bank from $60,000,000 to $75,000,000 by the declaration of a stock divi­
dend of $15,000,000, to be taken from
the bank’s present surplus. The ad­
ditional stock, if voted, will be dis­
tributed soon after the meeting on
December 21st to stockholders of rec­
ord at the close of business December
15, 1948.

BANKS

Bought and Sold

Stability and Service Ilrin q Grow th
Financial stability, sound business management, and the service it renders
have brought the Woodmen of the World 58 years of constant growth in
membership and financial strength.
Its assets, less than $6.000 in 1890, now exceed $164.000,000.
assets for each $1,000 of insurance protection in force.

More than 415,000 members are protected by nearly $475,000,000 of Woodmen
life insurance. They also benefit from Woodcraft's fraternal, social and civic
activities. Its 9,000 local camps contribute much to community welfare.

WOODMEN OF THE WORLD
LIFE INURANCE

Confidentially and with becoming dignity

BANK EMPLOYEES PLACED
43 Years Satisfactory Service

CHARLES E. WALTERS CO.

It has $345 in

SOCIETY

OMAHA, NEBRASKA
Farrar Newberry, President

W, C. Braden, Secretary

OMAHA, NEBRASKA


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

Northwestern Banker, November, Ì948

46

Nebraska N ew s

tive who gives specific examples of
typical transactions. Additional clar­
ity is achieved through the use of
illustrative charts, graphs and car­
toons.
Reservation dates for a copy of the
film, with a suggested alternate date
if possible, may be made with the
Retail Finance Division, Westinghouse Electric Corporation, 306 Fourth
Avenue, Pittsburgh 30, Pennsylvania.

Announces Officers
Officers of The National Asosciation
of Bank Auditors and Comptrollers

for the year 1948-49, elected at the
association’s twenty-fourth a n n u a l
convention last month, are:
President, Paul D. Williams, vice
president and comptroller, Corn Ex­
change National Bank and Trust Com­
pany, Philadelphia, Pennsylvania.
First vice president, Edward F.
Lyle, comptroller, City National Bank
and Trust Company, Kansas City,
Missouri.
Second vice president, Burton P.
Allen, executive vice president, Capi­
tal National Bank of Sacramento, Cali­
fornia.

Secretary, Raymond C. Deering,
comptroller, Manufacturers T r u s t
Company, New York City.
Treasurer, Clarence H. Lichtfeldt,
comptroller, First Wisconsin National
Bank, Milwaukee, Wisconsin.

New Imprinter
A new machine for on-the-spot im­
printing of personalized checks, the
Imprinter, was announced for the first
time by the Todd Company at the

iSSI
.■
l a p

'■

1*J M*

k a n

THANSIT

The New Check Imprinter
Recently Announced by The Todd Company

We Pay a

8 / 0 lig h t Bill
to Serve You Better
N o w o n d e r o u r lig h t b ill

is b ig — w h e n a ll th o s e lig h ts in o u r T r a n s it D e p a r t ­
m e n t are o n ’ til w e e m o r n i n g h o u r s ! B u t w e th in k
y o u ’ ll a g r e e th a t it ’ s w o r t h a la r g e lig h t b ill to
g i v e y o u n ig h t -t im e s e r v ic e . . .

to s p e e d t r a n s ­

Heads Safe Deposit Group

a c tio n s fo r y o u d ay o r n ig h t .
M a k e C ity N a t i o n a l

your

correspon d ­

e n t , a n d start e n jo y i n g o u r "y e a r s aheadi”
fa cilities.

ESTABLISHED 1913

S'SiL-

tfìa n fi & 9J ìaaa( (crtn fiaiì/ i

MEMBER FEDERAL DEPOSIT \“ \j
INSURANCE CORPORATION W

K A *4
Northwestern Banker, November, Ì948


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

74th annual convention of the Ameri­
can Bankers Association in Detroit.
Studying the checks which were im­
printed and bound into a checkbook
in less than three minutes is Daniel
H. Cooney, executive vice president
of the Kenosha National Bank, Keno­
sha, Wisconsin, third from the left.
Also present are, left to right, Gilbert
J. Owen, general sales manager of
Todd; L. T. Thomasma and Irving L.
Greene, assistant general sales mana­
gers, and Miss Helen Boreisis, operat­
ing the Imprinter.
At the annual convention of the
American Safe Deposit Association,
held in Boston last month, the follow­
ing association officers were elected:
Paul M. Becker, manager of the Safe
Deposit Division of the First Wiscon­
sin National Bank of Milwaukee, was
elected president. He succeeds Har­
old F. Corey, First National Bank of
Boston, who was elected to a threeyear term as a member of the asso­
ciation’s executive committee.
A. L. Wissman, safe deposit man­
ager of the First National Bank of
Philadelphia, was named vice presi­
dent and Hubbard S. Lafoon, assistant
vice president of the State-Planters
Bank and Trust Company, Richmond,
was elected secretary-treasurer.

47

IN V E S T M E N T S

A

r t i f i c i a

t o

n

t r i b

u

l l y

L

t e

t o

o

w

I n

i n

f l a

t e r e s t

t i o

H

a

t e n

n

Country's Economists Call for "Stiff Dose of Sound American
Common Sense" for Successful Debt Management
By RAYMOND TRIGGER
Investment Analyst
New York City
ENTRAL banks and treasuries
cannot exercise controls over
excessive credit expansion and
at the same time keep money exces­
sively cheap for government borrow­
ing. When a Federal Reserve Bank
buys government bonds to peg the
price, Federal Reserve money flows
out and increases the money supply.
This is wholly inconsistent with the
effort to fight inflation by reducing
the money supply in other ways.”

C

The foregoing quotation is from the
seventh and concluding number of the
series published by the committee on
public debt policy under a grant from
the Falk Foundation. This final chap­
ter is, in effect, a summarization of
the entire study and presents the com­
mittee’s conclusions. It was written
by W\ Randolph Burgess (chairman
of the executive committee of the
National City Bank of New York), and
and George B. Roberts, also of the
National City Bank, but the full com­
mittee takes responsibility for the
findings set out. The full committee
is an imposing list of some of the
country’s most realistically minded
working economists. Its conclusions
cannot be brushed aside as the murmurings of crackpots. A major one
can be paraphrased in this form:
Artificially low interest rates contrib­
ute powerfully to inflation.
Everyone is opposed to inflation,
especially in an election year. It is
clear that one of the strongest weap­
ons with which to combat inflation is
higher interest rates. They are well
on the way in all sectors except gov­
ernment bonds. In that field, the
Federal Reserve is doggedly fighting
on. In the course of the last year,
the Reserve Banks have bought more
than 23 billions of government secu­
rities. Worse, the pace of purchases
is rapidly accelerating. The two ma­
jor sellers have been commercial
banks and insurance companies. There
is nothing in sight to check the vol­
ume of such sales to the Reserve.

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.

Likely enough, the tempo will be
stepped up. The holdings of govern­
ments by commercial banks, though,
are so large that the Reserve can
hardly go on buying at unrealistically
high prices indefinitely.

Banks More Vulnerable
There are still voices raised in de­
fense of the pegs. Mostly they seem
to think that the banks would be
damaged if the market for govern­
ments were allowed to seek its natural
level. This is not necessarily true,
but it can be admitted that commercial
banks are more vulnerable than the
life insurance companies. Still, the
banks do not have to sell governments
to raise money to lend to their cus­
tomers, or to satisfy demands by de­
positors. In the first case, the banks
can stop lending; in the second case,
the banks can borrow from the Fed­
eral Reserve on the security of gov­
ernment bonds.
The insurance companies, it is ar­
gued, have no concern with market
prices, but are interested only in get­
ting the interest regularly and the
principal at maturity. This view may
be a little naive in that it is unlikely
that the insurance companies are
wholly unconcerned with m a r k e t
prices, but there is no doubt that,
speaking generally, their obligations
are of the long-term variety and they
can support a claim to being bonafide long-term investors and, conse­

quently, interested only in the ulti­
mate fate of their investments.
If that be allowed, the campaign
waged for lower interest rates so
vociferously by certain leaders of the
insurance field can be attacked on
the ground that the insurance comapanies are risking little (or, at any
rate, a great deal less than commercial
banks) in asking for higher interest
rates and, consequently, lower me­
dium and long-term bond prices,
whereas those supporting pegs have
a great deal at stake in the matter
of bond prices.

Pegs Will Go
The question of self-interest, though,
is rather beside the point. Clearly,
both those for and those against pegs
should take the broad view and con­
centrate on what is best for the coun­
try as a whole. Whether or not they
will is also rather beside the point,
since the pegs will go in any case in
due time. There are three important
considerations in this connection. In
the first place, no one is likely to be
badly hurt. After World War I, Lib­
erty Loan 41/4s sold down into the
low 80s and the general economy pro­
ceeded to boom right along for almost
a decade.
Then there is the fact that not
even the Treasury and the Reserve
are likely to go on monetizing the
debt to the possible ultimate limit.
In Washington the word is that the
line will be held for “the foreseeable
future.” The qualification is far from
reassuring when it is remembered
that the line yielded abruptly less
than a year ago when new, lower
pegs were announced.
The other important consideration
is merely that of technique. Should
the pegs be grudgingly lowered a little
at a time, or abruptly withdrawn com­
pletely? Something can be said for
an “ orderly” retreat, but better argu­
ments can be made for a complete
withdrawal.
As the situation stands, short rates
Northwestern Banker, November, 194$

48

Investments

are moving higher and, consequently,
short obligations are gaining in ap­
peal. There is, then, an immediate
and discernible reward for selling
medium and long governments to the
Reserve. If the pegs are to be low­
ered gradually, the rewards will

shrink, but won’t disappear. Sellers
will remind themselves that they have
no reason to hope for higher prices
and that “half a loaf is better than
none.”
On the other hand, if the pegs are
abruptly withdrawn and the market

IN VESTM EN T
SECU RITIES

Inflation Hurts

Public Utility
Industrial
Railroad
Municipal

A .C .A L L Y N

and C

OM PANY

Incorporated
10Ö W e s t
N ew

Y ork

M ilw a u k e e

O m ah a

W a te r lo o

M o n ro e

S tre e t, C h ic a g o
B o sto n

K an sas

M in n ea p o lis

C ity

M o lin e

Now Available on Request . . .

fortnightly

commentary

A FREE Investors Service Designed to
Give Busy Bankers and Business Men
Timely and Helpful Information on the
Business Outlook and Market Trends.
SEND FO R THIS SER V IC E T O D A Y

H O L L E Y , D A Y T O N & GERNON
Members C hicago Sto ck Exchange an d C h icago Board of Trade

105 SOUTH LA SALLE STREET, CHICAGO 3, ILLINOIS
Phone: Central 6-0780
MADISON, WIS.

•

LA CROSSE. WIS.

FOND DU LAC. WIS. *

•

MINNEAPOLIS, MINN.

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

left to seek its natural level, there
would doubtless be a brief period of
great uncertainty whilst the market
staggered about and recovered its
equilibrium. If, as may be presumed,
the “natural level” is definitely under
par, there will be no reward, no in­
centive to sell. Rather sales of the
world’s best credits at less than par
will involve most distasteful and un­
welcome penalties. Presumably, the
selling will dry up and slowly but
surely institutional and private in­
vestors will take up the slack.

EAU CLAIRE, WIS.
*

WAUSAU. WIS.

Market levels of government bonds
and whether the going rate for a par­
ticular credit of a particular term be
2 V2, 3 V2 or 4 V2 per cent means rela­
tively little to the great bulk of the
workers and consumers in this coun­
try. What does hurt is inflation. Not
only while prices are rising, but dur­
ing the extremely painful aftermath.
It is hard to put across the idea that
cheap money causes inflation, that
dearer money will check and that
much dearer money may even reverse
inflation. A fine effort to explain the
mechanics has been made recently by
Henry Hazlitt. In his words:
“Artificially low interest rates in­
crease the demand for bank loans;
increased bank loans mean increased
b a n k deposits; increased deposits
mean an increased volume of money;
an increased volume of money means
an increased monetary purchasing
power pushing up the prices of goods.
Cheap money means inflation.”
A public sufficiently aroused will
end the vicious spiral of inflation.
By implication, the era of cheap
money will be one of the victims.
Happily the general state of the na­
tion’s economic health is excellent.
If there is to be a period of adjust­
ment in the money market, one could
hardly ask for a more propitious mo­
ment.
Those who manage the investment
portfolios of the country’s commercial
banks have no insoluble problems.
They’ve already made major prepara­
tions for lower prices for medium and
long-term governments. Holdings of
short-terms will not, of course, recede
a great deal in the nature of things.
As they run off, too, they will be
replaceable with somewhat better
yielding Treasury obligations.
Not only have the managers of in­
vestment portfolios of banks made
ready; the free markets in securities
have likewise responded to the signs
of the times. Incidentally, of course,
the truly attractive yields available in
other than government securities are
just another reason to shift from arti­
ficially supported into free market in­
vestments.

Investments

49

Municipal Market
The municipal market is a case in
point. Yields on average, representa­
tive 20-year municipals have risen
from 1.37 to 2.44 per cent. These are
the exempt returns from municipal
bonds supported by the full faith and
credit and taxing power of the issu­
ing communities. Commercial banks,
most of which pay 38 per cent in­
come tax, can usually improve their
earnings notably by moving from tax­
able governments into exempt mu­
nicipals.
In a related field, that of munici­
pally sponsored revenue projects fi­
nanced by tax exempt bonds which,
however, do not have the “full faith
and credit” support of the municipal­
ity, yields are considerably better.
Tax exempt revenues, of course, are
usually more difficult to appraise than
straight municipal bonds, hut the ex­
tra study and work is frequently well
worth while.
Another type of investment that is
ordinarily considered tailor-made for
commercial banks is equipment trust
certificates issued by railroads. These
are a type of investment too little
known and appreciated by many com­
mercial bankers. Speaking generally,
the quality is excellent. In the past,
there have often been periods in
which the supply of these obligations
has been inadequate and discussion of
their merits, consequently, has been
largely academic. At the moment,
though, there are reasonably good
supplies in the market and in sight.
As one prominent investment secu­
rity house sees it, the total emission
of rail equipment issues this year will
certainly set a new record, “and the
only question is, what will the final
figure be? The huge demand for roll­
ing stock built up during the war and
the present improved position of
equipment manufacturers from the
standpoint of making deliveries are re­
sponsible for bringing about the cur­
rent record-breaking volume of equip­
ment trust issues.”

WHEELOCK & CUMMINS
Incorporated

Members Chicago Stock Exchange
Underwriters and Distributors of Investment Securities
200 Equitable Building
Phone 4-7158
Teletype DM 184

135 South LaSalle Street
Phone Andover 6700
Teletype CG 245

DES MOINES, IO W A

CH ICAGO, ILLINOIS

The American citizen is the best served in the world. Admirable public
buildings, schools and auditoriums, pure water supplies, health-giving
parks, sewer systems, broad surfaced highways. . . these are but a few
o f the public improvements and services which are his, made possible
largely through the sale o f bonds issued by states, counties, cities and
other taxing districts.
Widespread interest has developed in state and municipal bonds
because o f their exemption from federal income taxation, their recog­
nized safety combined with satisfactory return, and because o f the
public benefits resulting from their issuance.
Through Halsey, Stuart & Co. Inc., such highly acceptable bonds
are available to conservative investors. Write for our latest municipal
offering list, without obligation.

REPRESENTATIVE

Summary
To summarize the situation at this
point: Time is running against the
money managers and those who advo­
cate regulations and artificial controls.
Six months hence there may even be
new men at the head of the country’s
fiscal affairs, thus neatly by-passing
the face-solving problem.
Most banks are prepared for the
inevitable. Markets in high-grade se­
curities, other than governments, have
likewise anticipated probable future
developments. In certain sectors there
appear to be ample supplies, on hand
or in sight, of investment securities
suitable to bank portfolios and priced

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Federal Reserve Bank of St. Louis

OFFERINGS
Harrisburg, Pennsylvania

State of Arkansas
3 4 t % H i g h w a y R e f u n d in g B o n d s

lK %

S e w e r Im p r o v e m e n t B o n d s

Boston Metropolitan District

State of Michigan

l 4 s % T r a n s it B o n d s

1 4 C % & 14*2% V e te ra n s ’ B o n d s

Chicago Water Works System

New York City, New York

14*2%

3 % W a te r S u p p ly B o n d s

R e v e n u e C e rtifica te s

Comm, of Massachusetts

Omaha Public Power Dist., Neb.

1 .7 0 % V a r io u s P u rp o s e s B o n d s

l 4 i i % - 4 % E le c tr ic R e v e n u e B o n d s

Glendale Unified Sch. Dist., Cal.
14 2 % School B onds

Seattle, Washington

iyi°lo S tre et L i g h t i n g

& Pa rk B o n d s

H A L S E Y , S T U A R T & C O . In
123

SOUTH

IA SAIL!

STREET. C H I C A G O

90

• 35

WALL

S TRE ET, N E W T O R K

5 • AND

OTHER

c

PRINCIPAL

.
CITIES

Northwestern Banker, November, 1948

Investments
at inviting yields. At some future
date, investment managers of commer­
cial bank portfolios will resume their
traditional occupation of participating
in, and striving to profit from, a free
market in governments.
Meantime, this column of comment
can do no better than to conclude with
another quotation from the National
Debt Series. It is:
“ In this final report the committee
sets forth five basic steps which in
its opinion are essential to successful
management of the debt. The fivepoint program for action is as follows:
“ 1. Control the budget.
“2. Reduce the debt.
“3. Distribute the debt more widely.
“4. Restore flexible interest rates.
“ 5. Nourish a dynamic economy.
“There is nothing novel in this pro­
gram, nor anything easy and popular.
There is no secret formula. The need
is for nothing more or less than a
stiff dose of sound American common
sense.”—The End.

Ii

50

Publishes News Commentary

collection service to
any point in California

Holley, Dayton and Gernon, Chi­
cago investment firm located at 105
South La Salle Street, is publishing
an investment letter under the title,
“ Fortnightly News Commentary.”
Edited by Ward W. Dayton, manag-

One account with Bank of America, either
in Los A n g e le s or S a n Francisco, affords
correspondents direct, prompt handling of
collection items to any of the communities
in the State of California where this bank has
its branches. Direct your inguiries to Bank of
America, 30 0 Montgomery Street, San Fran­
cisco 20, or 660 S. Spring Street, Los Angeles 54.
B ra n c h e s in m o r e th a n 3 0 0 C a l i f o r n i a
c o m m u n itie s . F o r e ig n b r a n c h e s in L o n d o n ,
M a n i l a , T o k y o . N e w Y o r k r e p r e s e n t a tiv e ,
4 4 W a l l S tr e e t . C o r r e s p o n d e n t s
t h r o u g h o u t th e w o r l d .

iömtk of Amerirtt
N A T IO N A L

s a v in g s

ASSOCIATION

Wa/ryiitJit'a ’ì fjf/aù wrf/e £BanA
M E M B E R F E D E R A L D E P O S I T IN S U R A N C E CO RPO RA TI O N
M EM BE R F E D E R A L R E S E R V E SYSTEM

Bank of America Travelers Cheques are known
the world over. Sell them to your customers

Horthwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

W A R D W. D A Y TO N
“ Stock Market Least Inflated”

ing partner of the Chicago office, a
recent issue of the “Fortnightly News
Commentary,” stated: “With owner­
ship in the best and largest companies
in America selling lower in relation
to earnings than at any time in his­
tory and with the Federal Reserve
Board of the opinion that the stock
market is the least inflated of all sec­
tions of economy, it seems apparent
that unusual investment and profit­
making opportunities are available.”

51

IN SU R A N C E

The Musiness
Is Y our N u m ber One P rospect
Can Best Assist Him By Personal Contact
And By Organizing Rural Fire Prevention Services

You

By DENNIS C. SMITH
Chairman, Agricultural Committee
The National Fire Waste Council, Chicago
HE national farm cash income
last year was over 30 billion dol­
lars to which may be added an­
other eight billion dollars for non-cash
income such as farm home land, vege­
tables and other things produced and
used on the farm. No other group in
America enjoyed an income of over 38
billion dollars in 1947. Farm savings
reached an all-time high of 22 billion
dollars and, at the same time, farm
mortgage indebtedness was only five
billion dollars—here again, if history
repeats itself, no other group in Amer­
ica has so sizable a backlog of savings
and unmortgaged investment to tide
them over less prosperous times.
The modern business farmer is a
prospect for almost every line of in­
surance you sell, including property
insurance on buildings and farm per­
sonal, automobile and truck insurance,
owner’s and tenant’s liability, compen­
sation, life, personal property floater
and livestock mortality. He especially
needs the intelligent service that you
can supply with an on the premises
survey of his insurance needs and the
safe, sound and dependable protection
that you provide. The insurance
agents of your state would not be
writing insurance today on factories,
mercantile establishments and numer­
ous lines in your cities and large
towns if it were not for the contri­
butions of agriculture to industry.
Take the time to properly protect the
farmers in your state by giving them
the right kind of insurance protection
in order to safeguard the operations
of the many industries in your cities
and towns, as well as preserve the
wealth of these United States.
No other group in America now has

T

the purchasing power of the American
farmer. 1 have a chart in my office
indicating the 1947 purchasing power
as compared to prewar purchasing
power of the principal groups and it
shows that the farmer occupies the
top position. Only one group in the
nine depicted approaches by one-half
the purchasing power of the American
farmer. Agriculture is basic, it is the
source of all income. The industry

FRUSTRATION takes a stranglehold on the emotions of thousands o f rural and
farm families each year as they are forced to watch their homes, their personal
possessions and valuable equipment engulfed by tire that can’t be combatted
because of inadequate or a complete lack o f tire protection facilities. Helping to
alleviate this situation with intelligent leadership can open a big field of business
for local agents.

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

F IR S T

N A T IO N A L

BANK


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Federal Reserve Bank of St. Louis

B U IL D IN G

•

of farm insurance is vital to the big
business of agriculture and vice versa,
and for that reason no insurance
agency located in a town of 25,000
population or less can be built upon
a sound foundation that does not have
on its books a substantial volume of
the insurance of the business farmers
in the farm community that surrounds
that town or city.
You will note I referred to the

C H IC A G O

Scarborough & Company
In su r a n ce C o u n selo rstn B a n k s

3, IL L IN O IS

«

STATE

4325

Northwestern Banker, November, 1948

Insurance

52

farm insurance of the “business fann­
ers” in -your community as a sound
foundation for your agency. That risk
“which is good for the company is
also good for the local agent” is an
old and trite saying, but it bears re­
peating and it is definitely applicable
to the farm insurance business. The
farm business has not, and never will,
permit of undue liberality. It is a
class which both local agents and com­
panies must supervise carefully and
handle with understanding. It is utter
folly to write what appears to be de­
sirable insurance in a manner that
violates the fundamentals of good un­
derwriting and it is out of the ques­
tion to accept every risk. The lack of
discretion and good judgment in the
selection of farm owner clients has.
in a great degree, been responsible
for the dissatisfaction that many local
agents have encountered in their ini­
tial efforts to add business of this
class to their agency volume.
Careful selectivity of farm owners
is paramount in building a farm pre­
mium income if an agent desires to
avoid the headaches and dissatisfac­
tion that frequently comes to those
who have not previously sought this
desirable class and who fail to fa­
miliarize themselves with its problems
and the technique of good farm under­
writing and protection.

Strengthen Your
Doubtful Risks
With Lawrence
Receipts
Judged by its prevailing risk
criterion, a bank’ s portfolio
contains many loans on open
account which may well be
placed on a secured basis.
Lawrence warehouse receipts
issued on the borrower’s
inventory in such cases protect *
the lender with collateral
which is fundamentally sound.
* Lawrence receipt holders are pro­
tected by the strongest and broadest
fidelity bond and legal liability insur­
ance in the field warehouse industry.
Thus Lawrence can always discharge
its liabilities in full.

IN

TEN

S H O R T

Alarming changes in our national
price structure have taken place during
the past ten years. When viewed
month by month these changes were
not too disturbing, but when we block
out all intervening schedules and
compare only those of 1938 with those
of today, we are shocked.
Take check books, for example. Con­
sidering the increased number of
accounts, the higher activity and the
advances in price, it is conceivable that
a bank’s net outlay for checks, pass­
books and covers might be 2 0 0 more
this year than in 1938. And yet, a bank
that has been actively engaged in a
program of selling imprinted checks
to its customers throughout this per­
iod would probably find its net expense
lower because of the cost recovery.

Use this new Lawrence book to pre­
pare the way for secured credit with
customers for whom secured credit is
indicated. Write us for free copies.

UwRENCE Warehouse
POMPftNY
N a tio n w id e Field W a re h o u sin g
DIVISION
:

am

r R A N C IS C O ll, CALIF.
3 7 Drumm St.

Business Farms
The biggest mistake anyone can
make in analyzing the farm section of
the national or state market is to talk
of things in terms and averages. Ac­
cording to the census, we have 6,000.000 so-called farms. That is wrong.
We are interested in farms which
produce income and those which en­
able the operators to buy in substan­
tial quantities the better things, in­
cluding sound insurance. One of the
smartest men 1 know is an executive
with a large farm equipment company
in Chicago. He says we do not have
6,000,000 farms, but that we do have
3,500,000 “business farms” which are
worthy of the name. These farms
make money, buy manufactured goods,
need sound property insurance and
can pay for it. The other farms run
all the way from subsistence share
crop operations up to farms which
just enable the operators to make a
fair living. Those farmers in the
top half income group receive 82 per
cent of net farm income and account
for as much as 91 per cent of farm
expenditures.
A friend of mine in the agricultural
publishing business has frequently
compared farmers to insurance agents.
The top half in either group are pro­
gressive—they handle a lot of money,

Y E A R S

Strangely enough, the checks a bank
buys and gives awav have advanced in
price far more, percentagewise, than
have imprinted checks. Personalized
Pocket Checks, for example, are 40%
below what they were in 1938, so the
customers who pay for their checks
are getting a real bargain and, on every
order sold, the bank can recover its
full cost. When we add to this the
acknowledged customer satisfaction,
plus the time saved in sorting and
filing, we understand why so many
banks are pushing imprinted checks.
H ow about your bank.7 Are your
check costs up as compared to 1938?
Or have they shrunk? This is the time
to examine the question and see just
what has happened during these ten
short years. There still is time to cut
vour costs. May we help you do it?

OFFICES:
N EW Y O R K 5, N.
7 2 W a ll St.

y

.

C H IC A G O 2, ILL.
I N. La Sa lle St.
'n s A ngeles • Boston • Philadelphia • Pittsburgh • Buffalo
-leveland * Cincinnati • K ansas City • St. Louis • Atlanta
Des Moines • Charlotte • Jacksonville • New O rleans
Houston • D allas • Denver • Phoenix • Portland • Seattle
Spokane • Stockton • Fresno • Washington, D. C .
M anila, P. I.

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

Manufacturing Plants at '.
N E W Y O R K . C L E V E L A N D , C H IC A G O .

KA NSA S C IT Y , S T . PAUL

Insurance
they are prosperous and they are good
buyers of better things. Make up a
list of the top income farmers in your
community and go out after their busi­
ness by offering them an on-the-premises survey of their insurance needs.
You cannot know what goes on on
the farm nor what is needed in the
way of insurance protection unless
you personally inspect the premises.
Tt will do you good to get in closer
touch with the farmers and the soil.
You cannot write the insurance with
any degree of safety to the company
you represent or fairness to the farm­
er without knowing what there is to
be written unless you see it for your­
self.

competitive situation is developed and
adherence to good principles and prac­
tice is relaxed.
These companies apparently know
little about the farm business and care
less, yet their lax attitude and the
willingness on the part of a few farm
agents to follow the lines of least re­
sistance has in the past, and always
will, do violence to the,record of the
farm business. It seems to me most
unfortunate a n d unrighteous that
agents and companies to whom the
farm business is an important source
of income should have to suffer from
the misdeeds of these companies who
retired in confusion when the going

got tough
pulling in
places are
their farm

53

and who are once again
their horns and in many
asking to be relieved of
liability.

Fire Prevention
There is another subject that is
close to my heart and that is rural
fire prevention and protection. As
chairman of the agricultural commit­
tee of the National Fire Waste Coun­
cil, my attention has been directed to
some movements of national scope
that I think you should know about
and will wish to participate in. While
it is true that agriculture and rural
sections have not suffered in the ap-

Leadership
Through splendid leadership state
insurance associations have discour­
aged those agents who seek carriers
for their farm business that do not
consistently adhere to generally rec­
ognized good underwriting practice
and who are not concerned with the
general welfare of the farm business.
The good times enjoyed by agricul­
ture in the past few years was nat­
urally conducive to the development
of a spirit of optimism, and companies
that previously shunned the farm
business were again induced by their
fieldmen to seek the class. A highly

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.

<&> Surety division

FORTY YEARS
iii Progress
W e are proud of our record
in the Insurance field and of
our Banker Representatives.

The State Automobile Insurance Association
DES

M O I N E S .

IOWA

THERE ARE 2 TIMES WHEN . . .
YOU NEED A GOOD AGENT BAD
1. W hen you Purchase Protection
2. At Claim Time

W e write a complete line of

Fire - Windstorm - Automo­
bile & Plate Glass Insurance

IlESTERVMUTUAL
FIRE INSURANCE COMPANY
NINTH & GRAND

DES MOINES 8, IOWA

Your Allied Mutual agent is a good man to know
better. First of all, he is trained to recognize
your casualty insurance needs . . . and to advise
you intelligently on a casualty program tailormade for you.
And, at claim time, you'll find your Allied Mutual
agent right on the job to save you time and
worry. Be safe, be thrifty. Be insured with your
home town Allied Mutual agent.

Automobile
Puhlic
Liability
Workmen's
Compensation.

ALLIED MUTUAL
CASUALTY COM PANY

’*M utu al In su ra n ce Is A m erica n
In su ra n ce”


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

Harold S. Evans, President
Hubbefl Building

Oes Moines 7, Iowa

Northwestern Banker, November, 1948

Insurance

54

F O C A L P O IN T
foi Co-oidinated Regional
S

M I L W A U K E E

Wisconsin’s Bank for Banks
T h is outstanding ban k— e sta b lish ed
in 18 5 3 — serves as M ilw a u k e e d e ­
p o sito ry fo r o v e r 92 p e r cent o f a ll
the banks in W isco n sin !

t
W ith unparalleled correspondent “ coverage” of
W isconsin, the First W isconsin National Bank
of M ilw aukee is not only “ the point of prom pt
collection” for W isconsin checks and drafts, hut
also

the focal point for unique

Co-ordinated

Begional Service keyed to the needs of national
corporations operating branches, sales divisions,
<1islributorships, retail outlets or other units in
l h is area.
Bankers as well as business executives are invited
to write for further inform ation.

FIRST WISCONSIN
NATIONAL BANK
o f M ilw au kee

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

palling increase of fire waste to the
extent that has been experienced in
the urban centers, nevertheless, there
are a number of important factors
which clearly point the way to the
necessity for increased activity and
practical results by all of those who
are interested or engaged in farm fire
prevention and protection. The tre­
mendous increase in the use of ma­
chinery on the frm has contributed a
great deal to the unparalleled pro­
duction records of the American farm­
er in the past few years and at the
same time it has increased the hazards
from fire with which he must cope.
Farm fire and injury hazards in the
old horse-drawn plow and cultivator
days have increased until now they
embrace the widest category of indus­
trial transportation and commercial
exposures. For example: we now
have blacksmith and machine shop
hazards: transportation—trucks, trac­
tors and even airplanes; the use of
toxic and poisonous compounds and
inflammable liquids; electric power
plants and equipment, power saws,
wood working machinery and crop
drying equipment. These hazards call
for a more scientific application of
fire prevention technique and again
emphasize the fact that fire preven­
tion alone is not enough—the big
business of agriculture must be pro­
vided with fire protection.
The agricultural committee is now
sponsoring a nation-wide campaign of
rural fire prevention and protection
through Chambers of Commerce. By
the end of this year it is estimated
that over 500 meetings of local Cham­
bers of Commerce will be held with
local farmers to set up a program that
will provide their respective communi­
ties with rural fire protection.

Aiding Youth Groups
I also wish to direct your attention
to another activity in the farm fire
prevention field which embraces 15
mid-western states and of which in­
surance agents generally have not
taken full advantage. It is the Rural
Youth Scholarship Plan, sponsored by
the Farm Underwriters Association of
Chicago, and is available to the mem­
bership of 4-H Clubs and Future
Farmers of America. Here indeed is
an opportunity for insurance agents
to definitely associate themselves and
their business with young farm peo­
ple in local clubs of these leading
national farm youth organizations.
If you will interest yourself in your
local 4-H Clubs and Future Farmers
of America, you will have on oppor­
tunity to instill into these youngsters
fire prevention ideas which will pro­
duce in years to come the key to the
reduction of farm fires.—The End.

>1

iiiiiesota

M O GRANGAARD
President
Minneapolis

ROBERT E. PyE
Secretary
Minneapolis

1906 has had only one president,
Edwin Brickson.
The only other officer in the bank at
the present time with Mr. Erickson is
H. G. Knips, vice president and
cashier.
The most recent statement of the
Adrian State Bank shows total assets
of nearly $2,000,000, with deposits to­
taling $1,800,640.

Start A.I.B. Classes
Finish Remodeling
An extensive remodeling and mod­
ernizing program is now completed
at the First National Bank in Still­
water, Minnesota. A new safety de­
posit box section, complete with a
new vault, has been added with for­
merly unused basement floor space
providing the space.
The new, modern vault, which was
installed by Diebold, Inocrporated, in­
creases the number of boxes from
about 600 to over 800 and still leaves
room for future additions. Ease of
access for the patrons is a feature,
plus individual nooks for convenience,
as well as a larger consultation room.

Liquidating Fulda Bank
Legal proceedings for liquidation of
the Citizens State Bank of Fulda,
Minnesota, were begun, under which
assets will be sold to a new organiza­
tion which will take over the deposits
of the present bank as soon as author­
ized by the State Banking Department
and Federal Deposit Insurance Corpo­
ration to start business.
Stock originally owned by Fulda
business men and farmers has now
passed into the hands of non-residents
or is involved in estates of the original
stockholders.
The new bank will give merchants
and farmers now active in the com­
munity an opportunity to take over
control through stock purchases.

Dakota, in August of that year. PTe
entered the U. S. Army in July, 1942,
and served as an officer in six major
campaigns in Africa, Sicily and Eu­
rope. Upon discharge from the army
he moved to Slayton in April, 1946,
and started his law practice.
Other members of the present board
of directors are: C. B. Newman, pres­
ident: A. H. Engebretson, and Dr. H.
C. Dorns, chairman of the board and
vice president; Pete Kenefick and C.
J. Lieser, vice president and cashier.

Beginning 60th Year
The Adrian State Bank, Adrian,
Minnesota, completed its 59th year of
continuous operation October 23rd and
is now heading toward its 60th anni­
versary date. The bank has operated
under the same name and in the same
location all those 59 years, and since

Another course in banking under
the sponsorship of the American In­
stitute of Banking was begun last
month at the Worthington, Minnesota,
junior college building and will con­
tinue for 14 weeks, according to Ver­
non L. Kirk, chairman of the study
committee and assistant cashier at the
State Bank of Worthington.
A similar course was conducted
there a year ago, with conspicuous
success, and enrolled students from
the surrounding six-county area. Fiftyfive persons are enrolled for the
course this winter, Mr. Kirk said.

Apply for Charter
Business men of Badger, Minnesota,
have received approval of an applica­
tion to the Minnesota Commerce Com­
mission for a charter to open the
Badger State Bank. After two hear-

H a n k H is p la t/ s H is t o r ic a l H o m e s

Resigns at W averly
Peter C. Abler, who has been cashier
at the Citizens State Bank of Waverly,
Minnesota, has resigned to accept a
position with the Exchange State
Bank of Glendive, Montana.

Added to Directorate
Rov K. Rietz, Slayton attorney and
second district American Legion com­
mander, was named a director of the
Murray County State Bank at Slayton,
Minnesota, President C. B. Newman
announced recently. Mr. Rietz re­
places no one on the board of direc­
tors, but is made an additional mem­
ber.
A 1938 graduate of the University
of South Dakota law school, Mr. Rietz
started his practice at Mitchell, South

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

HOMES OF HISTORICAL INTEREST to Minnesotans were reproduced in
watercolor paintings by Josephine Lutz Rollins, prominent Minnesota artist, and
placed on display by the First National Bank of St. Paul (above), at the annual
Home Show in the capital city. Several of the homes are located in the Twin
Cities area— St. Paul, Minneapolis, Mendota and Stillwater. The oldest home in
the collection dates back to 1835, the Sibley House at Mendota.
Rather than promote home and home improvement loans through the bank
display, officers of the First National Bank felt that this array of paintings
would attract wide interest and, because of its historical nature, would enable
the bank to dwell on the 95 years of service it has given to the St. Paul area.
A brochure outlining important details of each of the 16 old structures was given
to every visitor at the booth shown in the above photograph.
Northwestern Banker, November, 1948

56

Minnesota News

ings before the Commission, at which
there was no opposition expressed, the
application was approved, listing capi-

tal as $25,000 and surplus at $5,000.
The only step to be completed late
last month was approval of member-

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.

Minneapolis 4, Minnesota

ship in the Federal Deposit Insurance
Corporation.
At an election of stockholders, the
following officers were selected: N. O.
Folland, president, and I. S. Folland,
vice president. Other stockholders in­
clude B. J. Borgen, Roy Larson, John
Sjoberg, Jacob Trangsrud and I. B.
Setran, all Badger business men.

Northome Banker III
E. O. Lukkasson, cashier of the First
State Bank at Northome, Minnesota,
was recovering last month following
a stroke suffered earlier in the month.
Oliver Latterell, vice president in the
bank and vice president and cashier
of the Citizens State Bank of Kelliher, has assumed active management
of the Northome Bank until Mr. Lukkasson’s complete recovery.

Add Farm Service
A new department called the agri­
cultural service department has been
added by the Welcome State Bank at
Welcome, Minnesota. In charge will
be Jay Schuler, prominent livestock
dealer and farm operator in that ter­
ritory.
Mr. Schuler had a number of years
banking experience prior to his pres­
ent livestock feeding and farming ac­
tivities. In 1944 he was elected a di­
rector of the Welcome State Bank and
is well known by most of the people
in the Welcome community.
Officers of the bank also have an­
nounced that the Doane Agricultural
Service’s monthly ‘‘Reports on Farm­
ing for Profit” is being sent to all
farm customers of the bank.

Seek Bank Charter

The

bank

that

understands

your

livestock

problems and is anxious to help you with them.
Participation in overlines, the earliest possible
presentation of collection items, and a close
follow-up on all large livestock items, are but
a few of the advantages an account with us
affords.

The S t o c k

Deerwood Banker Married

Y a r d s N a tio n a l B a n k
South Saint Paul, Minn.

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

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

A committee of Mantorville, Minne­
sota, business men were busy last
month contacting residents of that
town in connection with the possibil­
ity of opening a bank there. C. L.
Menne, Ronald McKean, Erling Leth.
Fred Baslington and Vernon Klaus
were members of the committee who
were attempting to get other business
men to subscribe a set goal in order
that application for a charter could be
made to the state banking commis­
sioner.

Miss Marie Peterson and Fred W.
Schwanke, president of the First Na­
tional Bank of Deerwood, Minnesota,
were married last month in the Salem
Lutheran Church in Deerwood.
After a reception, attended by 200
guests, the newly married couple left
for a trip to the west coast, and will
return to Deerwood. Mr. Schwanke
also is a state representative in the
Minnesota legislature.

Minnesota News

OR the tenth consecutive year, (Minneapolis) Red Cross chapter.
services of Minnesota banks to ag­ Mr. Lowry is treasurer of the chapter.
riculture of the state have been rec­
Kenneth Merrill, manager of the
ognized as outstanding by the Ameri­
foreign department of the First Na­
can Bankers Association.
At the 74th annual ABA convention tional Bank of St. Paul, has been
in Detroit, the Minnesota Bankers named chairman of the newly organ­
Association was presented with a ized International Trade Association
1.000-point rating award by the na­ of St. Paul. Representing more than
tional association’s agricultural com­ 100 firms dealing in or manufacturing
products adapted to foreign export,
mission.
The award was presented in recog­ the new group promotes more inter­
nition of the high quality of regular national trade for St. Paul concerns.
bank services provided farmers, as
The Minnesota Bankers Associa­
well as for special activities conduct­
tion,
in conjunction with the Univer­
ed by the association’s member banks
in the agricultural field during the sity of Minnesota, recently sponsored
past year.
In addition to the regular award,
the MBA received a 10-year honor
certificate. Especially cited were the
association's activities in cooperation
with 4-H Clubs and other farm and
youth organizations.
Other activities include promotion
of soil conservation, cooperative work
with the University of Minnesota and
sponsoring of farmer-banker discus­
sion meetings.

F

oi

its sixth annual farm income tax
short course in St. Paul. The threeday course was attended by some 400
bankers, insurance agents, tax con­
sultants and accountants. Farmers’
problems arising from changes in
1948 income taxes were discussed.
Lyman E. Wakefield, Jr., of the
First National Bank of Minneapolis,
has been named vice chairman of the
state traffic committee of the Minne­
apolis Chamber of Commerce.
Oliver S. Aas of the First National
Bank of Minneapolis has been reap­
pointed chairman of the American

IN CUBA-IT ’S
The

Malcolm B. McDonald, vice presi­
dent of the First National Bank of
Minneapolis, recently was named
state chairman of the Minnesota USO
campaign committee.
John de Laittre, vice president of
the Farmers & Mechanics Savings
Bank of Minneapolis, is treasurer of
the committee. J. Cameron Thomson,
president of the Northwest Bancorporation, is a member of the execu­
tive committee.
The First National Bank of Minne­
apolis recently inaugurated its new
half-hour radio dramatic program
series, “ Favorite Story.” Ronald Col­
man. noted actor, is host and nar­
rator for the program.

Royal Bank
o f Canada

The Royal Bank has six branches in Havana, eleven
others throughout the Island. Established in Cuba
since 1899, it provides practical help to banks and firms
doing business in this area. Enquiries invited.
New York Agency —68 William St., New York 5, N. Y.
O v e r 700 b ranches in C a n a d a , the W e st Indies, C e n tra l and South
A m e r ic a ; N ew York, London and Paris. C o rresp o n d en ts the world over.

HEAD OFFICE
Assets exceed

MONTREAL
$2,000,000,000

Goodrich Lowry of the Northwest­

ern National Bank of Minneapolis has
been named to the budget and finance
committee of the Hennepin county

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Federal Reserve Bank of St. Louis

Northwestern Banker, November, Ï948

58

Minnesota News

Legion memorial heart research pro­
fessorship.
Mr. Aas also has been elected to
the board of directors of the Ameri­
can Heart Association’s Minnesota af­
filiate, and appointed to the national
assembly of the American Heart As­
sociation.
Four hundred midwest bankers at­
tended a two-day Federal Reserve
Forum sponsored recently in Minne­
apolis by the Minneapolis Federal
Reserve Bank.
One of the speakers of the forum,
third annual of its kind, was Ernest
L. Pearce, president of the Union
National Bank of Marquette, Michi­
gan. Mr. Pearce warned the bankers

they must be alert to meet changing
conditions for two reasons:
First, he said, there is nothing more
urgently needed than a sound thrift
program for every family and the na­
tion. Second, the individual bank, if
it is to maintain and improve its earn­
ings and competitive position, must be
alert to new trends in individual, in­
stitutional and governmental concep­
tions of saving and financing.
John N. Peyton, president of the
Minneapolis Federal Reserve Bank,
told the bankers that his institution
would like to see the public have as
reasonably accurate an understand­
ing of banking as it has of baseball
or football.
The public is completely ignorant

VISI0 NLINED TRACTORS

of the real meaning of terms used in
monetary parlance, Mr. Peyton said.
Among other speakers at the forum
were M. S. Szymczak, member of the
board of governors of the federal re­
serve system; James C. Downs, Jr.,
president of the Real Estate Research
Corporation, C h ica go; James H.
Clarke, vice president of the Ameri­
can National Bank & Trust Company,
Chicago; Representative Walter H.
Judd (R., Minn.), and Kenneth Mc­
Farland, superintendent of schools at
Topeka, Kansas.
Nine employes of the First National
Bank of Minneapolis recently com­
pleted 26 years of service with the
bank. They are Philip C. Carlson,
Margaret E. Burt, Herbert E. Hamren, Alfred Hulten, Mildred V. Olson,
Harvey E. Peterson, Lydia Hoffmeister, Elmer W. Sjolander and Helen V.
Roden.

Plans for remodeling First Edina
State Bank, an affiliate of the First
National Bank of Minneapolis, have
been announced by Malcolm B. Mc­
Donald, president of the Edina bank.
Another 1,000 square feet of floor
space will be provided, an additional
800 safe deposit boxes will be in­
stalled and the entire building will be
air conditioned.

GET THE JOB DONI O N .T IM I!
Ruggedness and all-round “go” are coupled
with fuel economies in MM V i s i o n /in e d
Tractors to assure reserve power and out­
standing performance under all field and
weather conditions. From the famed MM
Visionlined “foursome” —the models R, U,
Z and GTB — choose the power-packed
tractor engineered for y o u r particular farm
needs! Special features include: fewer parts
and greater accessibility; anti-friction sealed
transmissions with precision-cut, heat-treated,
alloy steel gears; high turbulence type cylinder
heads; force-feed lubrication systems. “QuickOn—Quick-Off” tools for all MM Visionlined
Tractors offer greater utility and real economy.
S a fe , d ep en d a b le M M Visionlined Tractors
mean time saved and more profits on all your
farm power-jobs— all the year round! No mat­
ter how tough the job, there’s an M M Tractor
for better and ea sie r farming . . . ready to give
you that profitable teamwork of MM T ractors
and M M M odern M achines .

M M TRACTORS ARE VIS ION LINED FOR EFFIC IENCY, C O M FO R T , A N D S A FET Y !

Min n ea po lis -Mo line Power I m plem en t Company
M IN N EA P O LIS

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

1.

M IN N ESO TA

Some 35 directors of 70 banks af­
filiated with the Northwest Bancorporation in a seven-state midwest
area gathered in Minneapolis recent­
ly for the first of a series of confer­
ences.
Purpose of the conferences, accord­
ing to J. Cameron Thomson, presi­
dent of the corporation, is to promote
a better understanding of mutual
problems of the corporation and its
affiliates.
Included in the group were Steph­
en P. Duffy, a director of Northwest­
ern National Bank of Minneapolis:
G. L. Heegaard, a director of Midland
National Bank of Minneapolis, and
Edward Nelson, a director of Fourth
Northwestern National Bank of Min­
neapolis.
From St. Paul were D. L. Grannis,
a director of Stock Yards National
Bank of South St. Paul, and Wilfrid
E. Rumble, a director of Empire Na­
tional Bank & Trust Co.
Also in attendance were Charles A.
Lemon and A. R. Tuchsherer, di­
rectors of the Daly Bank & Trust Co.,
Anaconda, Montana; Guy N. Bjorge,
a director of the First National Bank
of the Black Hills, Rapid City, South
Dakota; William R. Johnson, a di­
rector of the Stock Yards National

59

Y
DIRECTORS

MANUFACTUR ERS

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

TRUST

COMPANY

EDGAR S. BLOOM
Chairman, A tlantic , G u lf and
W est Indies Steamship Lines

ALVIN G. BRUSH
Chairman , Am erican Home
Products Corporation

LOU R. CRANDALL

Condensed Statement o f Condition as at close o f business

September 30, 1948

President, George A . Fuller
Com pany

CHARLES A. DANA

RESOURCES

President, Dana Corporation

HORACE C. FLANIGAN
Vice-Chairman o f the Board

JOHN M. FRANKLIN
President, United States Lines
Com pany

PAOLINO GERLI
President, Gerli & C o I n c .

HARVEY I). GIBSON
President

FREDERICK GRETSCH
President, Lincoln Savings
Bank

JOHN L. JOHNSTON
President, Lambert Company

OSWALD L. JOHNSTON

Cash and Due from Banks .

.

U. S. Government Securities

.
.

.

$

.

.

U. S. Government Insured F. H. A .
M o r t g a g e s ..........................................
State and Municipal Bonds .

.

.

Stock of Federal Reserve Bank

622,104,418.52
996,786,737.78
4,422,093.42

.

31,323,457.28
.

3,037,500.00

Other S e c u r i t i e s ....................................

.

18,913,902.47

Loans, Bills Purchased and Bankers’
Acceptances . . . ........................

581,511,933.74

M o r t g a g e s ................................................

15,480,122.56

Banking H o u s e s ....................................

10,213,466.50

Other Real Estate Equities .

.

.

.

497,695.40

Simpson Thacher & Bartlett

Customers’ Liability for Acceptances

KENNETH F. M acLELLAN

Accrued Interest and Other Resources

5,639,964.61
6,161,205.92

President, United Biscuit
Com pany o f Am erica

$2,296,092,498.20

JOHN T. MADDEN
President, Emigrant Indus­
trial 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 & Lehigh

LIABILITIES

C a p i t a l ........................ $41,250,000.00
S u r p lu s ........................
Undivided Profits.

60.000.000.00
.

2 6.633,877.46

Reserve for Contingencies

.

.

Reserves for Taxes,
Unearned Discount, Interest, etc.

.

Dividend Payable October
WILLIAM G. RABE
Vice President

HAROLD C. RICHARD

Outstanding Acceptances

.

.

6,863,379.12
7,184,244.30

1, 1948
.

.

.

127,883,877.46

.
.

1,237,500.00
6,065,921.63

Liability as Endorser on Acceptances
and Foreign B i l l s ..............................

1,967,058.68

New York City

Other L iab ilities..........................................
HAROLD V. SMITH
President, H om e Insurance Co.

ERNEST STAUFFEN

D e p o s it s ......................................................

18,992,126.21
2.125,898,390.80
$2,296,092,498.20

Chairman, Trust Committee

L. A. VAN BOMEL
President, National D airy
Products Corporation

United States Government and other securities carried at $81,485,342.41 are pledged to secure
public funds and trust deposits and fo r other purposes as required or permitted by law.

GUY W. VAUGHAN
President, Curtiss-Wright Cor­
poration

HENRY C. VON ELM
Chairman o f the Board

ALBERT N. WILLIAMS
President, W estinghouse
A ir Brake Company


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Federal Reserve Bank of St. Louis

Head Office: 55 Broad Street, New York City
MORE THAN 75 OFFICES IN GREATER NEW YORK

European Representative Office: 1, Cornhill, London, E. C. 3
M em ber F e d e ra l R eserve System
M em ber N ew Y ork C learing House Association
M em ber F ed e ra l Deposit Insurance Corporation

Northwestern Banker, November, Î948

60

Minnesota

News

Bank & Trust Co., Omaha; Reuben
Kaplan, a director of the Security
Bank & Trust Co., Owatonna, Minne­
sota; Charles F. Liscomb, a director
of the First & American National
Bank of Duluth; George C. Koss, a
director of the lowa-Des Moines Na­
tional Bank; H. E. Simmons, a di­
rector of the First National Bank &
Trust Co., Fargo: I*. W. Blank, a di­
rector of the First National Bank of
Mandan, North Dakota, and Theodore
Johansen, a director of the Union
National Bank of Rochester.
Arthur C. Buffington of the First

National

Bank

of Minneapolis has

been appointed head of the ROTC
subcommittee of the military affairs
committee of the Minneapolis Cham­
ber of Commerce.
Bank debits for 133 cities in the
Ninth Federal Reserve district in
September totaled $3,273,065,000 com­
pared with $3,070,894,000 for the same
month last year, a gain of 7 per cent.
Minnesota debits increased from
$2,281,786,000 in September, 1947, to
$2,396,761,000 in September, 1948, a
gain of 5 per cent.
Cecil A. Burnham of the First Na­
tional Rank of Minneapolis has been

d tLY A R D S

ÖL B A N K

CARL L. FRED RICKSEN
President

“People Are MOST Important”

M ARK A. W IL SO N
V ice President
W IL L IA M C. SCHENK
Asst. V. Pres, and Cashier
CLIFFO R D L. ADAM S
Asst. V ice President
JOHN S. H A V E R
Asst. Cashier
JAM ES L. SM ITH
Asst. Cashier and Auditor
K IN L E Y W. SM ITH
Asst. Cashier

In this bank, the most important
thing is "p e o p le ." Surely, we have
all
the mechanical
things,
the
"g a d g e ts " that mean prompt and
accurate correspondent service —
but above all, our customers are
"p e o p le ."
They
want
and
get
friendly, personal service and that's
just what we offer you here in Sioux
City, at the "on ly bank in the
Yards."
Let us serve you in handling your
items, including your live stock, hay
and grain collections, in particular.

S T A N L E Y W. EVANS
Field Representative

4

SIOUX CITY

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, November, 1948

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Federal Reserve Bank of St. Louis

W Ä PI81

named chairman of the 1949 Henne­
pin county Red Cross drive.
Rollin G. Andrews of J. M. Dain &
Co., Minneapolis, recently was elect­
ed chairman of the Minnesota group.
Investment Bankers Association of
America, at the organization's annual
meeting at the Minikahda club in
Minneapolis.
Bernard B. Knopp of the First Na­
tional Bank of St. Paul was named
vice chairman and Walter G. Space
of Woodward-Elwood & Company.
Minneapolis, secretary-treasurer.
Elected to the executive committee
for two-year terms were John H. Middlemist of the Northwestern National
Bank of Minneapolis; James S. Gra­
ham, Allison-Williams Co.. St. Paul,
and Douglass M. Warner of Paine,
Webber, Jackson & Curtis, Minneap­
olis. G. Janies Caldwell of Caldwell
Phillips Co., St. Paul, was named na­
tional governor for a three-year term
at a previous meeting of the execu­
tive committee.

The First National Bank of Minne­
apolis placed first in a membership
campaign conducted by the Minneap­
olis chapter, American Institute of
Banking. Harvey Peterson was chair­
man of the bank’s membership and
enrollment committee.
The Minneapolis Federal Reserve
Bank placed second. Marquette Na­
tional Bank of Minneapolis and the
Fifth Northwestern National Bank
tied for third. Northwestern National
Bank was fifth.

Park Rapids Promotions
Vincent R. Smythe has been elected
vice president and cashier of the State
Bank at Park Rapids, Minnesota, by
directors of that institution. He had
formerly been cashier and now will
occupy the positions held by his fa­
ther, R. W. Smyth, before his recent
sudden death.
Mr. Smythe has been connected with
the State Bank for several years, go­
ing there from Luverne. He also had
banking experience in Park River,
North Dakota.
At the same time the directors
named Edward Flynn assistant cash­
ier of the bank, a post that had been
vacant for some time. Mr. Flynn is
the son of John E. Flynn, long-time
president of the bank. He obtained
his first banking experience at Park
Rapids following graduation from
high school. Later he spent a year in
San Diego, California, in a branch of
the Bank of America, leaving there to
enter the Navy soon after war was
declared. He served four years, emerg­
ing with the rank of lieutenant.

61
State Bank but was acquired by the
town when the bank was liquidated.
About a year ago the Volin branch
of the Wakonda bank was opened for
business.

Soni li lia k ola

Sponsors Corn Contest
k * \

Etaf-q*
è

J . M. LLOYD
President
Yankton

CARL E. BAHM EIER, JR.
Secretary
Huron

H oh l A n n u a l

Gr

HE South Dakota Bankers Asso­ location of the bank today. The bank
ciation has just completed one of later became a part of the First Na­
its finest series of group meetings tional Bank of the Black Hills system
ever conducted among the five state of banks, with headquarters bank lo­
groups. An instant hit with audiences cated at Rapid City. All of these
at each of the gatherings was the banks are affiliated with the North­
dinner speaker, the Honorable Josh west Bancorporation.
Lee, member of the Civil Aeronautics
Board in Washington, D. C., and for­ Raymond A. Goodwin
mer United States Senator from Okla­
Raymond A. Goodwin, 59, former
homa. His wealth of information on
Wakonda, South Dakota, banker, died
public affairs and his ready wit were
at his home in Mankato, Minnesota,
enjoyed by all who turned out at the recently. Mr. Goodwin first became
annual group meetings.
associated with the banking business
Starting November 1st at Belle in Wakonda in 1916 when he was ex­
Fourche and continuing through No­ ecutive vice president of the Wakonda
State Bank. In 1924 he moved to
vember 6th, with an open date on
Sioux Falls where he entered another
November 3rd, the meetings generally
followed the Same pattern. A busi­ bank, leaving this position later on
ness meeting was conducted at 4:30 to enter the implement business in
p. m., during which the group retire­ Mankato.
ment plan, only recently adopted by
the association, was explained by
Elect Officers
Robert Callaghan and John P. Lynch
At the recent district meeting of
of the John Hancock Mutual Life In­ bankers in McPherson, Edmunds, Pot­
surance Company. Following this, a ter, Faulk and Campbell counties held
short addess on implications of Regu­ in Roscoe, South Dakota, recently,
lation W was given by a representa­ Clarence Knudson, cashier of the
tive of the Federal Reserve Bank of Leola State Bank at Leola, was elected
Minneapolis.
president. F. G. Grosz, vice president
J.
M. Lloyd, president of the South and cashier of the Bowdle State Bank
Dakota Bankers Association, also re­ at Bowdle, was named vice president,
lated briefly the achievements and and A. J. Haerter, cashier of the Farm­
work of the association during the
ers State Bank at Hosmer, was elected
past year.
secretary-treasurer.
A social hour was held just before
dinner, Mr. Lee’s address being the
Married at Sisseton
only formal part of the banquet pro­
Miss Bonnie Kouba and Kenneth
gram.
M. Erdahl were married at Sisseton,
In addition to the opening meeting
South Dakota, recently. Mrs. Erdahl
of Group 5 at Belle Fourche, other
is the daughter of F. H. Kouba, assist­
meetings were held November 2nd,
ant cashier of the Robert County Na­
Group 4, at Mobridge; November 4th,
tional Bank in Sisseton, and Mr. Er­
Group 2, at Aberdeen; November 5th,
dahl is a member of the staff at the
Group 3, at Mitchell, and November
State Bank of Alcester.
6th, Group 1, at Madison.

T

70th Anniversary
The Deadwood office of the First
National Bank of the Black Hills was
70 years old last month. Originally
receiving its charter in July 1878, the
First National Bank was opened in
October of that year at the corner
of Lee and Main Streets, the same

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Federal Reserve Bank of St. Louis

Sell Bank Building
The building housing the Volin,
South Dakota, branch of the Security
State Bank of Wakonda was ordered
sold recently by the town’s board of
trustees, t h e property’s appraisal
value being set at $5,000. The build­
ing formerly was owned by the Volin

Farmers of Lake county, South Da­
kota, were invited to enter their five
best ears of corn in the first annual
producers’ corn contest, sponsored by
the Security Bank and Trust Com­
pany of Madison last month, which is
particularly interested in farm devel­
opment in the territory. The corn
was judged by Milford Sagness, coun­
ty agent, and H. W. Gadda and R. H.
Gardner, vocational agriculture in­
structors. Prizes were awarded.

S io u x F a lls N e w s
Madison,
resigned as an assistant attorney
Pgeneral
at Pierre to become trust
HIL

KENS VOL I),

JR.,

officer of the First National Bank &
Trust Co. His resignation was an­
nounced to become effective Decem­
ber 1st. Mr. Rensvold also has served
as state chairman of the Young Re­
publican League.
J. S. Hinman, assistant cashier of
the Northwest S e c u r ity National
Bank, is state vice president for the
National Association of Bank Audi­
tors and Comptrollers which held its
24th annual convention in Atlanta,
Georgia, this fall.

Tom S. Harkison, president of the
National Bank of South Dakota, was
toastmaster at the annual dinner
meeting of the Sioux Falls Safety
Council.
C. A. Christopherson, chairman of
the board of the Union Savings Bank,
spoke on “Education for a Peaceful
Society” at a public hearing at the
Y.M.C.A., sponsored by the local
Baha’i assembly.
W. E. Perrenoud, cashier of the
First National Bank & Trust Co., has
been elected to the Chamber of Com­
merce board of directors.
Sioux Falls bank clearings in­
creased from $22,439,870 in Septem­
ber, 1947, to $23,132,032 in September,
1948. A comparison of bank debits
here showed a total of $63,636 in Sep­
tember, 1947. and $74,107 in Septem­
ber, 1948.

Several Sioux Falls bankers at­
tended the third annual Federal Re­
serve forum in Minneapolis last
month.
Northwestern Banker, November, 1948

62

South Dakota N e w s

New Perforator Duties
“Perforations in wholly new appli­
cations are aiding management amaz­
ingly in making routines fast and
accurate. From fraud prevention to
elimination of loss of time, money
and material through error or negli­
gence, new applications of perfora­
tions are spreading through business
of all types across the nation,” says
Paul Jones, president, Cummins Busi­
ness Machines Corporation, makers
of Cummins perforators, check sign­
ers, endorsers and other mechanized
business equipment.
Mr. Jones points out that there is
finality about a perforation. It is one
mark that cannot be altered. And

with a new process by which the in­
dividual perforation is outlined in
dry ink, a “printed hole” of even
greater visibility is achieved by the
Cummins kind of perforation.

Cornerstone Laying
Three remaining survivors of the
Chicago fire, their nieces and grand­
daughters and a group of leading Chi­
cagoans last month witnessed the lay­
ing of the cornerstone of Central Na­
tional Bank’s new $1,000,000 bank
building on the site reputed to be the
origin of the great Chicago fire.
Among the distinguished group was
John Drury, famous Chicago biog­
rapher, newspaper man and author.

S T A T E M E N T OF CO NDITIO N

NORTHWEST SECURITY
NATIONAL BANK
of S i o u x F a l l s , S o u t h D a k o t a

South Dakota's Leading Rank
Ju n e 3 0 , 19 48
RESOURCES
Cash on Hand, in Federal Reserve Bank, and
Due from Banks and Bankers............................$10,960,915.77
U. S. Government Obligations..........................
20,608,645.95
State and Municipal B on ds...............................
939,040.82
Other Bonds and Securities.................................. 1,446,437.52
$33,955,040.06
Stock in Federal Reserve Bank in Minneapolis...........................
45,000.00
Overdrafts ......................................................................................
3,933.12
Loans and Discounts...................................................................... 11,041,442.96
Banking Houses ..............
240,000.00

who placed the original manuscript
of his new book, “Crossroads of a
Metropolis,”’ to be published by the
Central National Bank as a public
service, relating the history of Chi­
cago’s great west side.
Central National Bank, originally
occupying a remodeled bank building
at 728 W. Roosevelt Road, burned to
the ground March 31, 1947. Since
that time the bank has been operating
from temporary quarters just a block
west while directing the rebuilding
of a huge twin building structure oc­
cupying a full block.

New Booklet
“Check Indorsements” is a new title
in the series of management-idea
books published by the Hammermill
Paper Company. John Y. Beaty, edi­
tor of Banker’s Monthly and an au­
thority on checks and check handling,
wrote the book for Hammermill.
Thorough information on indorser
responsibility under the negotiable in­
struments act is contained in the 24
readable pages of “Check Indorse­
ments.” The little book also treats
of the various kinds of indorsements
and the correct and safe way to make
them.
“Check Indorsements” makes a fine
companion book for “Business Checks
—Their Proper Planning and Design,”
an earlier Management-Idea Book
which Mr. Beaty wrote for Hammer­
mill. '

J t i c r o f i i t n 0*r

Includes Banking Houses at Sioux Falls, Brookings, Chamberlain, Dell
Rapids, Gregory, Huron and Madison, all clear of encumbrance.

Interest Earned but Not Collected.................................................

164,129.20

TOTAL....................................................................................... $45,449,545.34
LIABILITIES
Capital Stock— Common ...................................... $
Surplus ...................................................................
Undivided Profits and General Reserves.............

500,000.00
1,000,000.00
593,608.66

Reserve for Interest, Taxes, and Other Expenses.......................
Interest Collected but Not Earned.................................................
Deposits:
Time ................................................................$ 7,187,212.85
Demand ........................................................... 35,062,581.16
U. S. War Loan...............................................
807,230.63
Other Liabilities ..............................................................................

$ 2,093,608.66
242,433.95
56,428.09

43,057,024.64
50.00

TOTAL....................................................................................... $45,449,545.34
BRANCHES AT

B R O O K IN G S , C H A M B E R L A I N , D E L L R A P ID S ,
G R E G O R Y , H U R O N , M A D IS O N
A ffilia ted with N orthw est Bancorporation
M em ber F e d e ra l D eposit Insurance Corporation

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

New Recordak Duo Microfilmer
photographs documents along both
sides o f 16mm. film, adopting the
principle used in 8mm. amateur
movie-cameras. Using a reduction
of 35 times, the machine triples the
“ storage” capacity o f 16mm. film.
A 50-foot roll of film will contain
10,000 bank checks. Machine will
accept documents up to 9% inches
wide.

\orlli U.'ikolii

NEWS
ARNE A. GREGOR
President
Leeds

increase Capital Stock
Declaration of a $25,000 stock divi­
dend by directors of the Dakota Na­
tional Bank of Fargo, North Dakota,
has increased the common capital
stock total for the bank from $175,000
to $200,000. Surplus of the bank is
listed at $200,000 and undivided profits
at $104,000, with deposits nearly $12,000, 000.

Hold Group Meetings
The four North Dakota group meet­
ings went off as scheduled last month
with good attendance at all four meet­
ings.
The meetings were held at
Valley City, Devils Lake, Minot and
Mandan, with State Association Presi­
dent Arne A. Gregor, president of the
Farmers State Bank at Leeds, appear­
ing on all four programs.

Plan Expansion Program
A modernization and expansion
program in the Union National Bank
in Minot, North Dakota, to be under­
taken about the first of the year, was
announced last month by Harry M.
Grant, president.
Quarters of the Union Insurance
Agency, which now are on the main
floor of the bank, will be moved to
the downstairs and utilize a portion
of the space now being used by the
Gross Printing Company and Minot
Radio Service, which will move be­
fore the work begins.
Tellers’ cages in the bank will be
expanded, and in addition to the space
now being utilized for such purposes,
will include the quarters on the south
side of the bank lobby being used
by officers.
Officers’ desks and quarters will be
moved to the north side of the lobby,
to space now occupied by Union In­
surance Agency.
A portion of the downstairs, in addi­
tion to that used by the insurance
firm, will be utilized for expansion of
banking services. Windows in the
downstairs will be sealed and an air
conditioning unit installed. The bank’s
main entrance will remain as it is,
and there will be access to the down­
stairs from the front of the bank, as
well as the south side. No major
changes are contemplated in the pres­

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Federal Reserve Bank of St. Louis

c. c.

ent arrangement of the downstairs
safe deposit department, except that
some additional space will be avail­
able.
The insurance agency, which oper­
ates as a separate institution from the
bank, will have approximately 50 per
cent more floor space than it now has.
W. D. Johnson, vice president of the
bank, pointed out that the raised floor
of the bank makes it possible to adapt
the downstairs very well to the pur­
pose for which it will be used.

INFLATION . . . EMPLOYMENT
AND BANK CREDIT
(Continued from page 19)
be able to do this and still maintain
sound banks, we must keep our eyes
on two important aspects of practical
bank management. Let’s avoid ac­
quiring a too large volume of loans,
at the present level of economic activ­
ity, which may prove to be difficult
or impossible to collect if the business
curve should start to turn downward
in a significant way. Also, let’s keep
our capital-to-risk assets ratio at a

sufficiently safe level so that we can
take a few losses in our stride, if we
have to take them. Otherwise, we
might not be able to do our share
to increase bank credit should pro­
duction or employment show real de­
clines.
Most people are interested in eat­
ing regularly. That means they are
interested in jobs—employment—the
opportunity to work. Bank credit
and employment go together.
Can we get that idea over through
day-by-day decisions, by across-thedesk discussions, by talking to labor
groups, by advertising? Are we ready
to do it? Can we claim the share of
the credit that I believe is due us
for maximum employment, unless we
are ready, able, and willing to fulfill
our part of the responsibility when, as,
and if the employment figures fall?
These, to me, are important questions
to raise.

The Future
Fortunately for all of us, I am not
in the business of predicting the fu­
ture. Therefore, I am not attempting
to imply that another 1929 to 1933,
or something like it, is, or is not, in
the offing. I will stick my neck out
to the extent of saying that if an­
other situation occurs in which pro­
duction and employment drop sharply
and if the condition gives evidence of
lasting any considerable period of
time, then I believe once again the
banking system will be called to the
bar. If for no other reason than
that many of us are both inept and
impotent politically, my guess would
be that we would be found guilty

Omt o Ä

’' •

will find this institution especially
well equipped to handle their Chicago accounts
prom ptly and efficiently. Our complete facilities
are at your disposal.

C it y Natio n al B an k
A N D T R U S T C O M P A N Y o f Chicago
208

SOUTH

(MEMBER

FEDERAL

LA S A L L E
D EP O SIT

STREET

IN S U R A N C E

CO R P.)

Northwestern Banker, November, 1948

under such circumstances and that
the banking structure would again be
overhauled.
I happen to like the framework
within which the hanking system now
operates. Private ownership, subject
to some .reasonable degree of regula­
tion, and subject, of course, to thor­
ough examination by the supervisory
authorities, is a good setup, if prop­
erly managed by all concerned. I
would like to see it remain substan­
tially the way it is.
I imagine you would, too.

AIR CONDITIONED
FOR HEALTH
AND
COM FORT

\

To keep it that way, you and I,
in our own self-interest, must under­
stand how the machinery works, and
we must make our decisions accord­
ingly. We must explain the situation
to business folks, to labor, and to the
other people outside of the banking
profession so that they, too, will un­
derstand why we do what we do.

BAKER HOTEL
The ultim ate in facilities for recreation an d
r e ju v e n a tio n . O th e r o u t s ta n d in g f e a t u r e s
in clu d e the finest in th e ra p e u tic b a th s w ith
co m p le te m a ssa g e . Lu x u rio u s a c c o m m o d a ­
tions. Beautiful g ro un ds w ith an eig hth-m ile
sun v e r a n d a . O u td o o r activities at their best.

Rooms fr o m $3. y

V *y

listed by committee on American Health Resorts
ol the American Medical Association

MINERAL W ELLS,

In our discussion we have broken
the subject down under four headings.
What is bank credit? It is the crea­
tion of purchasing power.
Is there a relationship between bank
credit and inflation in general and
between bank credit and employment
in particular? A priori reasoning in­
dicates that there is. An examina­
tion of the record confirms this hy­
pothesis.

The Westinghouse Equity Plan
C o m e s to Life on Film
T h e W estinghouse Equity Plan has aroused w idespread interest am ong thousands
o f bankers. T h is plan is a W holesale and Retail financing program using the full
advantages o f local fin an cin g by local banks.
T o meet the many requests for additional inform ation, we have prepared a 30minute sound slide film, especially for banks, picturing this program w hich covers
the financing o f electric appliances and radios.
T h is film, describing the plan in detail and show ing banks how to put it to w ork,
w ill be ready by m id-N ovem ber. T he film w ill be loaned without charge to banks for
show ing to their organizations, or for use at regional or state meetings.
Reservation dates for a copy o f the sound slide film, with an alternate date, if
possible, may be made with:

The Retail Finance Division

W e s t i n g h o u s e E le c tr ic C o r p o r a t i o n
PITTSBURGH

Northwestern Banker, November, Î948


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Federal Reserve Bank of St. Louis

30,

PENNSYLVANIA

65
Five Suggestions

Since such a relationship exists,
what should you and I he doing about
it now? Five suggestions have been
offered. First, we should recognize
bank credit for what it is. Secondly,
we should ask two fundamental ques­
tions about every loan that we make:
Is it safe? and then, where will the
impact be felt—on prices, on produc­
tion, or on employment? If the im­
pact is primarily on prices, the con­
structive quality of the loan is open
to question. With substantially max­
imum employment and production,
the conditions which exist today,
where is the impact of increased credit
most likely to be felt? The next sug­
gestion was that we have the courage
to decline non-constructive loans, even
though safe, and the courage to ex­
plain our reasons to the would be
borrower. The fourth suggestion was
that we so run our banks now that
we will be able and willing to make
good loans freely should the forces of
deflation seriously threaten at some
future time. Lastly, the idea was
advanced that an important part of
our public relations program should
center on getting the idea across to
those outside of our profession, par­
ticularly to labor, that banks play
their part in bringing about a condi­
tion of maximum employment. Can
we do that unless we are prepared
to shoulder our responsibilities should
conditions go in the other direction?
The last of our four general ques­
tions was: Why is it important to
us that we do something about all of
this right now? The answer to that
one is that under conditions of ad­
verse employment and production, a
real threat of nationalization exists.
We like our banking system the
way it is. We want to keep it that
way. Therefore, public relations in
all of its aspects is vital. No phase
is more important today than that
which relates to the bank’s credit
activities. We must be conscious of
this in our clay-by-day actions, in our
conversations, in our advertising, and
in our public contacts with various
organizations. In the proper handling
of this matter lies the future course
of our profession.—The End.

LEGAL QUESTIONS
(Continued from page 24)
stipulations since matters of public
interest transcending the rights of
litigants are involved.
Nebraska.
Iowa, Michigan, Illinois, Alabama, and
the federal courts are among those
that have so held. Because of this,
a decree based upon the stipulation
would not be binding on the city and
could be vacated or set aside.

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Federal Reserve Bank of St. Louis

Guaranty
Trust Company
oí New \ ork
J
3
*
140 Broadway
F ifth Ave. at 44th St.

M adison Ave. at 60th St.

LONDON

•

P A R IS

•

R ockefeller P la za at 50th St.
BRU SSELS

_______

Condensed Statement o f Condition, September 3 0 , 1018
RESOURCES
Cash on Hand, in Federal Reserve Rank, and
Due from Ranks and Bankers . . . .
U. S. Government Obligations
. . . .
Loans and Rills Purchased
9 6 ,5 7 2 ,6 4 7 .9 2
Public S e c u r i t i e s ..........................
9 ,0 0 0 ,0 0 0 .0 0
Stock o f Federal Reserve Rank .
1 0 ,2 9 4 ,0 8 5 .3 0
Other Securities ami Obligations .
1 5 ,4 6 6 ,8 3 0 .6 3
Credits Granted on Acceptances .
Accrued Interest and Accounts
8 ,1 1 5 ,1 4 4 .0 0
Receivable.......................................
1 ,3 1 2 ,3 0 9 .5 0
Real Estate Ronds and Mortgages

;

6 9 8 .3 1 9 .0 9 1 .4 8
1.0 26.4 86 .8 72 .2 8
9 2 7 .4 3 5 .8 1 0 .6 7

1 4 0 ,7 6 1 ,0 1 7 .3 5
4 .7 6 3 .3 9 5 .7 8
16 ,729 .41
!,7 9 7 ,7 8 2 ,9 1 6 .9 7

Rank P r e m i s e s ..........................
Other Real Estate
. . . .
Total Resources
LIABILITIES
Capital
. . . . . . . .
$ 1 0 0 ,0 0 0 ,0 0 0 .0 0
2 0 0 ,0 0 0 ,0 0 0 .0 0
Surplus F u n d .................................
6 5 ,3 3 0 ,4 5 0 .6 8
Undivided Profits .
................................
Total Capital Funds .
Deposits .............................................. $ 2 ,3 1 9 ,6 3 4 ,0 1 7 .1 7
2 4 ,473 ,47 8.61
Treasurer’ s Cheeks Outstanding .
Total Deposits
.
2 0 ,5 6 3 ,3 4 2 .1 3
Acceptances ....................................... $
Uess: Own Acceptances Held
5 ,0 1 1 ,4 5 3 .8 8
for I n v e s t m e n t ..........................
1 5 ,5 5 1 ,8 8 8 .2 5
$
Dividend Payable October I, 1948
Items in Transit with Foreign
Branches .......................................
Accounts Payable, Reserve for
Expenses, Taxes, etc.

3 6 5 ,3 3 0 .4 5 0 .6 8

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

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

8 8 ,3 4 4 ,9 7 0 .5 1
Total L ia b ilit ie s ....................................... $ 2 ,7 9 7 .7 8 2 .9 1 6 .9 7
Securities carried at $155,074,188.66 in the above Statement are pledged to qualify for
fiduciary powers, to secure public moneys as required by law, and for other purposes.

W ILL IA M L. K L E IT Z
Presitlenl

) LU TH ER C LE V E L A N D
Chairman of the Board

DIRECTORS
GEORGE G. ALLEN
Director, BritishAmerican Tobacco Company, Limited,
and President, Duke Power Company
W ILLIA M B. BELL
President.
American Cyanamid Company
1. W . C H A RSKE
Chairman. Executive
Committee, Union Pacific Railroad Company
.1. LU T H E R CLE VE LA N D Chairman of the Board
W . PALEN CON WAV
CHARLES P. COOPER
President.
The Presbyterian Hospital in thé City of New York
W IN T H R O P M . C R A N E , Jr.
President.
Crane & Co.. Inc.. Dalton, Mass
ST U A R T M . C R O CK E R
President.
The Columbia Gas System, Inc.
JOHN W. D AV IS
of Davis Polk Wardweli
Sunderland & Kiendl
CHARLES E. D U N L A P
President.
Berwind-White Coal Mining Company
GANO D U N N
President.
The J. G. White Engineering Corporation
W A L TE R S. F R A N K L IN
Executive VicePresident. The Pennsylvania Railroad Company

JOHN A. H AR TF O R D
President, The Great
Atlantic & Pacific Tea Company
COR NELIU S F. K E L L E Y Chairman of the Board.
Anaconda Copper Mining Company
M ORRIS W . KELLOGG
Chairman of the
Board, The M . W . Kellogg Company
W ILL IA M L. K L E IT Z
President
CHARLES S. M UNSON
Chairman. Executive
Committee, Air Reduction Company, Inc.
W IL L IA M C. PO TTER
GEORGE E. ROOSEVELT

Retired
ol Roosevelt N Son

EU G EN E W . STETSON
Chairman. Executive
Committee, Illinois Central Railroad Company
TH O M AS J. WATSON
President
International Business Machines Corporation
CHARLES E. WILSON

President, General
Electric Company
ROBERT W . WOODRUFF
Chairman.
Executive Committee. The Coca-Cola Company

Member Federal Deposit Insurance Corporation

Northwestern Banker, November, 1948

66

TWENTY-FOUR

HOUR

TRANSIT

T h a t’s the way some folks think of us.
depend

upon

Live

Stock

National

TERMINAL.

M ore than 400 local banks

Bank

for speedy,

dependable

Transit Service. Y o u m ight compare us to a railroad or air terminal
. . . with transits and clearance on collection items passing through
our hands every hour, 24 hours a day, on their way again by plane or
train. Items received at night, leave that same night.

W e have only

one schedule . . . the fastest possible within the limits of accuracy.

Give us a try, next tim e you need extra-fast action on your transit
items . . . you ’ll find we can save as m uch as a day’s tim e on trans­
actions . . . build more profits and better customer relations for you.

Live stock^ bank
O M A H A ,

THE

B A N K
M em ber

of

OF
F ed eral

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

N E B R A S K A

F R I E N D L Y
R eserve

and

F ed eral

2 4 - H O U R
D e p o s it

In su ra n c e

S E R V I C E

C o r p o r a tio n

67

Jotra h a n k ers Hah!
U2ntl A nnual Session
in h e s M oin es
Harry W. Schaller, of Storm Lake, Elected President

W. SCHALLER, president
H ARRY
of the Citizens First National
Bank, Storm Lake, was elected
president of the Iowa Bankers Asso­
ciation at the concluding session of
the 62nd annual convention held last
month in Des Moines. Serving with
Mr. Schaller as vice president and
treasurer is J. V. Keppler, cashier of
the First National Bank of Dubuque.
Registration was around 1,600, cer­
tainly a good attendance, and one
which taxed the facilities of the Hotel
Fort Des Moines. Many persons who
would have liked to attend the an­
nual banquet could not be accommo­
dated.
Commenting on the many activities
of the Iowa Bankers Association, and
on the important part agriculture
plays with relation to Iowa banks,
President W. W. Blasier, in his mes­
sage to the membership, said:
“ The situation regarding agriculture
in Iowa is one of optimism. With a
bounteous crop of corn and other
grains, and with the large number of
hogs and cattle now under feed, it is
clear that the Iowa farmer will be in
an enviable position, insofar as his
income is concerned. It is to be
hoped that the price levels, based on
the cost of goods which the farmer
must buy, will be maintained even
though we have a change of adminis­
tration at the coming election. A re­
cent survey of the farm mortgage debt
of the nation indicates that Iowa has
the largest mortgage on its land of
any state in the union, as of January
1, 1948. This debt amounted to $381
million plus. The next lowest was
California with $368 million plus, and
the next lowest was Texas with $334
million. However, commercial banks
in Iowa and Texas were among the
lowest in the percentage of these mort­

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Federal Reserve Bank of St. Louis

gages held by them—10 per cent and
less. The total farm mortgage debt
in the nation amounts to $4.6 billion,
and the large amount of debt in Iowa
only proves that we have the most
valuable crop producing area in the
world, and the money lenders defi­
nitely accept that fact. Real estate
values have gradually increased, but
with less momentum than city real
estate or town dwellings. After World
War I, land values increased to a 213
average, whereas, today they have
reached a 152 average over the 19101914 levels. More than one-half of all
farms bought during the past year
were paid for with cash. Applications
for bank mortgage loans are decreas­
ing, according to the majority reports
received from country bankers. The
improved crop outlook in Europe, to­
gether with the bumper crops here
at home, would seem to warrant the
assumption that a lower level in farm
prices will be forthcoming during the
next few months.
“The farmers are in an enviable
position to withstand any moderate
drop in the price level because of
their moderate debt position, and the
fact that a great many have govern­
ment bonds bought during the stress
of war which they now can fall back
upon in case same are needed. The
over-mortgaged position of farms,
which was so common after World
War I and during the 1933 depression,
does not exist today and, as we have
heard so often and we still believe
it: ‘A prosperous agriculture means a
prosperous nation.’ In no other line
of endeavor does nature add her in­
crease in such a lavish fashion as she
does in agriculture. If we wish to
continue to do our part in curbing
the inflationary trend, bankers should
apply, among other basic tests, a de­

HARRY W. SCHALLER
Heads Iowa Bankers Association

termination as to whether or not loans
are for productive purposes, and the
ability to repay the loans from normal
farm income.”
In his discussion of some legal and
practical aspects of everyday banking
problems, C. Edward Dahlin, a mem­
ber of the law department of the First
National Bank of Chicago, gave an
outline of 32 “Don’ts” relating to safe
deposit operations. Here are the safe­
guards Mr. Dahlin suggested:
1. Don’t sell a safe deposit box to
a new customer without offering to
explain the procedure, rule and type
of protection and service rendered by
the company to the customer.
2. Don’t oversell the responsibility
of the company to the customer, be­
ing sure to explain to the customer
that while every protection within the
limits of good procedure and practice
is offered, the company is not to be
considered as an insurer or guarantor
of the contents of-the safe deposit box.
3. Don’t call the key used by an
attendant a “master key” or “the com­
pany’s key.”
The proper term is
“guard key.”
4. Don’t rent a box under an alias.
5. Don’t allow an employe or vault
attendant to take and retain posses­
sion of a customer’s key.
6. Don’t allow customer to leave
key in safe lock.
7. Don’t fail to keep keys under
joint control once they are numbered
and set up for rental.
8. Don’t fail to require attendants
to examine customers’ keys before in­
serting them in the lock and do not
use keys made other than through the
regular source of such keys.
Northwestern Banker, November, 1$48

68

9.
Don’t carry customers’ boxes forties are present, even though signa­
them unless in their full view.
ture requirements have been met.
19. Don’t accept access ticket if con­
10. Don’t ordinarily allow examina­
tion of box in vault. Require custom­ siderable time has elapsed between
the request for access and the time
er to use coupon booth.
stamped on the ticket.
11. Don’t permit ingress and egress
20. Don’t accept orders for access
to the vault proper by customers car­
rying large valise, packages, etc., with­ from a renter known to be hospital­
out first getting explanation and not­ ized without requiring a doctor’s cer­
ing the unusual'■character of the visit tificate as to competency or having the
order signed before a trusted employe
in your records.
of the vault.
12. Don’t allow boxes to be taken
21. Don’t depart from established
from the premises.
procedures of identification.
13. Don’t allow access (which in­
22. Don’t rent a safe deposit box to
cludes deputy) on notice of death,
a minor as a practical objection and
mental incompetency or bankruptcy
if for business policy reason you do,
of a renter or one of several joint
be sure and note .the records that no
renters until legal requirements are deputy can be appointed.
properly fulfilled.
23. Don’t rent a safe deposit box to
a corporation without proper resolu­
14. Don’t allow access to safe deposit
box if company is served with gar­ tions.
nishment writ, injunction writ or
24. Don’t take possession of contents
similar court order unless instructed of safe deposit box for non-payment
otherwise by your attorney.
of rent until reasonable efforts have
been made to collect amount due and
15. Don’t allow illegal access in mat­
ters of emergencjr without instruc­ never until proper notice of contem­
plated action has been sent to custom­
tions from your attorney.
er according to the specific provisions
16. Don’t permit fiduciaries to ap­ of your contract or by-laws.
point deputies unless the law or docu­
25. Don’t drill a lock for a deputy
ments under which they are acting unless the contract specifically pro­
clearly authorize same.
vides for it.
26. Don’t fail to keep permanent and
17. Don’t allow blind customer to
take others with him in the vault accurate record of lost and found prop­
erty.
with his box without identification of
27. Don’t allow anyone but proper
the party in his company and also re­
official
to return lost and found arti­
quiring signature and identification on
cles to customers.
access slip.
28. Don’t drill delinquent boxes ex­
18. Don’t allow acesss to joint con­ cept in the presence of at least one
trol boxes unless both required par­ official or employe.

29. Don’t disregard a notice of can­
cellation of deputy authorizations
when received by telephone or tele­
gram but require immediate written
confirmation.
30. Don’t cancel unexpired rental
contract by instructions from a deputy
or co-renter, unless the written agree­
ment clearly permits same.
31. Don’t keep vaults open in pe­
riods outside of regular business
hours.
32. Don't give out unauthorized in­
formation regarding boxes.
Concluding his address on the sub­
ject of public relations, Robert Lind­
quist, vice president of the La Salle
National Bank, Chicago, and president
of the Financial Public Relations Asso­
ciation, said:
“Time does not permit talking about
advertising, publicity and specific
phases of business promotion and
community development. The impor­
tant thing to remember is that these
are not public relations in themselves
—-but rather are tools to be used in
a basic public relations policy on the
part of management. So 1 have tried
only to give you an understanding
of what public relations really is and
its importance to your bank. If you
have this understanding, and if you
imbue your entire organization—di­
rectors, officers, employes — with it,
then you will know what to do. And
the important part of public relations
is not so much what is done, but the
spirit in which it is done, of seeing
beyond the dollar sign and thinking
of our job as one of serving and
pleasing people.”—The End.

A i the hura Ifanliers t'a a rea tia a - —
On th e o p p o s ite p a g e , r e a d in g f r o m l e f t to r ig h t, are p ic tu r e s
o f som e o f th ose a t t e n d in g th e I o w a B a n k e r s C o n v e n t io n in
D es M o in e s. I n th e p ic tu r e s are—
1—
A1 J u n g e , a s sista n t c a s h ie r N o r t h w e s te r n N a tio n a l B a n k ,
M in n e a p o lis ; F r a n k W e lc h , p r e s id e n t P e o p le s B a n k & T ru st
C o m p a n y , C e d a r R a p id s ; H . L . O lle n b u rg , p r e s id e n t H a n c o c k
C o u n ty N a tio n a l B a n k , G a r n e r ; a n d F r e d C on ra d , v ic e p r e sid e n t
N o r t h w e s te r n N a tio n a l B a n k , M in n e a p o lis .
2—
D a le H . S m ith , e x e c u t iv e v ic e p r e s id e n t T ip to n S ta te
B a n k , T ip to n , I o w a ; W . W . S u m m e rw ill, v ic e p r e s id e n t I o w a
S ta te B a n k & T r u st C o., I o w a C it y ; a n d D a le C. S m ith , a ssista n t
ca sh ie r C e n tra l N a t io n a l B a n k , D es M o in e s.
3—
C h arles A . C a re y , v i c e p r e s id e n t H a r r is T r u st & S a v in g s
B a n k , C h ic a g o ; V . O. F ig g e , p r e s id e n t D a v e n p o r t B a n k & T r u st
C o m p a n y ; a n d J o h n T. H a m ilto n I I , p r e sid e n t M e r c h a n t s N a ­
tio n a l B a n k , C ed a r R a p id s.
4—
A r t h u r J. F r e y , s e c o n d v i c e p r e s id e n t C o n tin e n ta l I llin o is
N a tio n a l, C h ic a g o ; W . H . M ille r , v ic e p r e s id e n t C it y N a tio n a l
B a n k , C h ic a g o ; G e o r g e A . M a lc o lm , p r e s id e n t D r o v e r s N a tio n a l
B an k , C h ic a g o ; a n d E r n e s t H u ltg re n , F ir s t N a t io n a l B a n k ,
C h ica g o .
5—
E v e r e t t M . G riffith, v i c e p r e s id e n t I o w a -D e s M o in e s N a ­
tio n a l B a n k , D es M o in e s ; J . J . M ille r , v ic e p r e s id e n t a n d ca sh ie r
W a t e r lo o S a v in g s B a n k ; V . W . J o h n so n , p r e s id e n t F ir s t N a tio n a l
B a n k , C ed a r F a lls ; W . A . L o o s b r o c k , e x e c u t iv e v i c e p r e s id e n t
C itize n s N a tio n a l B a n k , C h arles C it y ; a n d C arl M . H o o k , a s sist­
an t v ic e p r e s id e n t M iss is s ip p i V a lle y T r u s t C o., S t. L o u is .

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

6—
J. P . K r o g h , S t o c k Y a r d s N a tio n a l B a n k , O m a h a ; J oh n
M c C u m b e r, v ic e p r e s id e n t S t o c k Y a r d s N a tio n a l, O m a h a ; and
T. J. M cC u llo u g h , v ic e p r e s id e n t F ir s t St. J o se p h S t o c k Y a r d s
B a n k , St. J o se p h , M is s o u ri.
7—
R o b e r t W . P r ib o r s k y , O m ah a N a tio n a l B a n k ; J oh n
C h a n g strom , v ic e p r e s id e n t O m ah a N a t io n a l; an d I r a W . K in s e y ,
v ic e p r e s id e n t S e c u r it y F ir s t N a tio n a l B a n k , L o s A n g e le s .

A.

8—
R o b e r t W . T u rn er, p r e s id e n t C it y N a tio n a l B a n k , C ou n cil
B lu ffs ; A u s t in L . V ic k e r y , a s sista n t v ic e p r e s id e n t U n ite d
S ta te s N a tio n a l B a n k , O m a h a ; R a lp h B r u b a c h e r, p r e s id e n t T o y
N a tio n a l B a n k , S io u x C it y ; L lo y d W is e m a n , a s sista n t ca sh ie r
C r o c k e r F ir s t N a tio n a l B a n k , San F r a n c is c o ; an d F r a n k F u ch s,
v ic e p r e s id e n t F ir s t N a tio n a l B a n k , St. L o u is .
9—

A b u s y m om en t a t th e c o n v e n t io n r e g is t r a t io n d esk .

10—
H u g h R . K ir k p a t r ic k , C hase N a t io n a l B a n k , N e w Y o r k ;
R o b e r t E . H u n t, s e c o n d v ic e p r e s id e n t N o r t h e r n T r u st C om p a n y ,
C h ic a g o ; J a c k R ig le r , N o r th e r n T r u st C o m p a n y , C h ica g o .
11—
B en S u m m erw ill, p r e s id e n t I o w a S ta te B a n k & T r u st C o m ­
p a n y , I o w a C it y ; F r a n k C o v e r t, a s sista n t v ic e p r e s id e n t D r o v e r s
N a tio n a l B a n k , C h ic a g o ; T o m C. C an n on , St. P a u l T er m in a l
W a re h o u s e C o m p a n y , D es M o in e s ; M a r k W ils o n , v ic e p r e s id e n t
L iv e S t o c k N a tio n a l B a n k , S io u x C it y ; a n d S t a n le y E v a n s, a s sist­
a n t c a s h ie r L iv e S t o c k N a tio n a l, S io u x C ity .
12—
C h arles H . G riesa , v ic e p r e s id e n t I n te r -S ta t e N a tio n a l
B a n k , K a n s a s C it y ; J a m e s W . H u b b e ll, p r e s id e n t B a n k e r s T ru st
C o m p a n y , D es M o in e s ; S c o t t P id g e o n , e x e c u t iv e v ic e p r e sid e n t
B a n k e r s T r u st C o m p a n y ; an d R . K . M c G e e , e x e c u t iv e v ic e
p r e s id e n t C la rk C o u n ty S ta te B a n k , O sce o la , I o w a .


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Federal Reserve Bank of St. Louis

70

Iow a

News

Moves to Allison Bank
Bernard Spengler has accepted the
position of assistant cashier at the
State Bank of Allison, Iowa, and be­
gan work there last month. He as­
sumed the duties formerly held by
Wilford Nelson.
Before moving to Allison, Mr.
Spengler was assistant cashier in the
Ocheyedan Savings Bank at Ocheye-

TALLMAN SHOP
BANKING FIXTURES
and

STORE FIXTURES
PHONE 24

CLARION, IOWA

dan, and he has had many years of
banking experience.
Charles Spengler, who has been con­
nected with the state banking depart­
ment for several years as assistant
examiner, has resigned his position
and has entered the employ of the
Ocheyedan Savings Bank.

Remodeling Tama Bank
Interior of the Tama State Bank of
Tama, Iowa, was being remodeled last
month to accommodate increased busi­
ness. Another teller window was
built, making a total of four. Hubert
Kubicek, cashier, or Ray Adair, vice
president, will assist at the new win­
dow. Other tellers are Genevieve

Novotny, Philip Sevcik, assistant cash­
ier, and Don Loepp.
Another office is being built at the
left side of the entrance in space for­
merly used for seating area for con­
venience of patrons. The new private
office is to be used by the loan depart­
ment, according to President J. H.
Neil.

Install Recordak
The First State Bank of What
Cheer, Iowa, has installed a new Re­
cordak, a machine to facilitate the
services of the bank in keeping per­
manent records.
The First Trust and Union Savings
Bank of Sigourney also installed a
new Recordak machine recently.

Court Ruling Announced
After a court hearing of interest to a
number of banks in Iowa and other
states, the Farmers National Bank
of Webster City, Iowa, has agreed to
a four-point declaratory decree which
will prevent it from helping its cus­
tomers in drawing up wills or other
legal documents.
The bank and a group of attorneys
which had charged the bank with the
unauthorized practice of law agreed
to the decree signed by Judge B. F.
Thomas of Traer.
The decree brought an end to the
five-day old trial and disposed of the
case in which the state bar associa­
tion had become an intervenor.
The decree states that:

The

Doorway
to
Friendly
Service
#

T h is b an k is an ideal C h ica g o connection

for th ose w h o desire a h ig h ly p erson alized co r­
resp on d ent

service.

O ur

b an k er

cu stom ers

establish close frien d ly relationships n o t only
in our b an k in g d e p a rtm e n t b u t also in the
bon d , tru st and oth er d e p a rtm e n ts.

L et us

tell y o u h ow y o u r b an k can benefit from a
co n n ectio n here.

THE NORTHERN
TRUST COMPANY

Clothes that
cannot stand
analysis on
the basis of
Quality, cannot
stand analysis
on the basis
of Economy.
Faithfully Yo ur s
For 87 Y e a r s

50 S O U T H L A S A L L E S T R E E T , C H I C A G O 90, I L L I N O I S
M e m b e r F ed era l D e p o s it I n s u r a n c e C orp ora tion

Northwestern Banker, November, 1948

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Federal Reserve Bank of St. Louis

Frankel’s
OES MOINES

71

OFFERING SERVICE
BEYOND THE CONFINES
OF REGULAR BUSINESS

VALLEY BANK AND T R U S T COMPANY
DES M O I N E S

75th
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION


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Federal Reserve Bank of St. Louis

A N N IV E R S A R Y
Y E A R

Northwestern Banker, November, 1948

Iowa News

72

G O O D W IL L B U ILD E R S

F ^ R F ^ R M PATRONS

Form Work Sheets — New, complete

"Former's Tax Saving Guide"
By Byron Ver Ploeg, Iowa Attorney
Now of Drake U. Law Faculty.
Price $1.00 — Sent on free approval.

guides for the farmer in assembling
his income tax figures. Two sides— not
the usual one page skeleton work sheet.
Samples on request.

also other

INCOME TAX SUPPLIES
(Time-saver forms for offices preparing tax returns)

No.
No.
No.
No.

1
2
4
5

Farm Schedules.
Farm Accrual Schedules.
Rent Schedules.
Business Schedules.

T y p e your Fe d eral
& S ta te sch e d u les In
one o p eratio n

No. 6 Deductions (Donations,
Taxes,
Medical, etc.)
No. 7 Capital Gains and Losses.
No. 8 Depreciation Schedules.

TAX SUPPLIES CO.
120'/2 High Ave. W.
OSKALOOSA. IOWA

A m ple sp a c e w here
the returns th e m selv e s
a re in ad e q u ate

(Send for samples and quantity pricesI

I

1. The practice of law is exclusively
vested in lawyers.
2. A trust institution shall not em­
ploy a lawyer for the purpose of fur­
nishing legal services to others.
3. A bank or trust organization can­
not practice law, nor draw wills or
other legal documents or perform
services in the administration of es­
tates and trusts where such “ acts by
law are considered the practice of
law.”
4. A trust institution in its advertis­
ing, directly or indirectly, cannot offer
legal advice.
The suit contended that the Webster
City bank solicited legal business, par­
ticularly concerning estates and wills.
The group of eight lawyers started
the action last December and at that
time District Judge G. R. Hill issued
a temporary injunction directing bank
President G e o r g e Alexander and
George Aden, cashier and an attorney,
to refrain from further advertising or
solicitation of legal business.
The temporary injunction was dis­
solved and the court costs were taxed
to the defendant by the agreement.

To Hold Tax School

shoes..

. one o f the 357 different industries in the St. Louis area
. . . m aking St. Louis industry the most diversified o f any city in
the nation. This also m akes centrally-located St. Louis on e o f
the m ost econ om ically stable places to do business in the
U nited States, r

Our experience in serving so many dif­
ferent kinds of industry over a period of
90 years proves especially valuable to
our correspondents.
Whatever your problems, you 11 find our
complete correspondent service of real
value.

TH
E FIRST
N A T IO N A L B A N K
IN ST.LOUIS

The fourth annual federal income
tax school for northwest Iowa will be
held at the Martin Hotel in Sioux City
Friday, November 12th.
These schools are offered as a pub­
lic service in the interest of and for
the assistance of federal income tax
payers. The schools will present an
opportunity to discuss the fundamen­
tals of the federal tax under present
revenue laws relating primarily to in­
dividuals, partnerships and estates.
The school has been made possible
by the Sioux City banks and by the
Iowa Bankers Association as a public
service to federal income tax payers.
E. H. Birmingham, Collector of In­
ternal Revenue for the District of
Iowa, has cooperated by making a
speaker available.
The schools are open to all farmers,
bankers, business men, lawyers, CPAs.
reaL estate and insurance men and
any other taxpayers desiring to at­
tend. There is no charge.
Registration is scheduled for 8:30
a. m., with the morning session start­
ing at 9:00 a. m. The afternoon ses­
sion will run from 1:30 to 4:30 p. m.

W e invite you to join our many corre­
spondents who find their association with

Buy Majority Stock

"T h e First in St. Louis” (the largest bank

The majority of stock in the First
National Bank of Missouri Valley.
Iowa, has been purchased by a group
of local business men and farmers
from George A. Kellogg, president,
and others.
Mr. Kellogg, who has been president
of the bank for 40 years, will continue

in the area) both pleasant and profitable.
M ember F ed era l Deposit Insurance Corporation

Northwestern Banker, November, 1948

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Federal Reserve Bank of St. Louis

ST. LO UIS' LA RG EST B A N K

THE N A T I O N A L C I T Y B A N K
OF NEW YORK
Head Office

• 5 5 WALL STREET

• New York

Condensed Statement of Condition as o f September 30, 1948
Including: Domestic and F or e ig n B ra nch es Bu t Not In clu din g T h e Affiliated C it v B a n k Farmers Tr u st C om p a n y

( In Dollars Only— Cents OmittedJ

ASSETS
Cash, Gold and Due from Banks.........................
United States Government Obligations (Direct
or Fully Guaranteed).........................................
Obligations of Other Federal Agencies...............
State and Municipal Securities............................
Other Securities.......................................................
Loans and Discounts..............................................
Real Estate Loans and Securities........................
Customers’ Liability for Acceptances.................
Stock in Federal Reserve B ank..................... .
Ownership of International Banking Corpora­
tion ........................................................................
Bank Premises.........................................................
Other Assets.............................................................
T o ta l............................................................

DIRECTORS

$1,547,041,050

\VM. GAGE BRADV. JR.
Chairman of the Board

1,584,583,351
20,569,603
263,166.196
78,822,061
1,349,605,149
2,731,430
21.217,081
7,200,000

VV. RANDOLPH BURGESS
Chairman of the Executive
Committee
HOWARD C. SHEPERD
President

SOSTHENES BEHN
Chairman. International
Telephone and Telegraph
Corporation
CURTIS E. CALDER
Chairman of the Board, Electric
Bond and Share Company

7,000,000
27,843,118
2,661,774

GUY CARY
Shearman & Sterling & Wright
EDWARD A. DEEDS
Chairman of the Board, The
National Cash Register
Company

$4,912,440,813

L IA B ILITIES
Deposits....................................................................
(Includes U.S. War Loan Deposit $45,046,431)
Liability on Acceptances and Bills. . $35,172,348
Less: Own Acceptances in Port­
folio............................................... 10.739,479
Items in Transit with Branches...........................
Reserves for:
Unearned Discount and Other Unearned
Incom e..............................................................
Interest, Taxes, Other Accrued Expenses, etc.
D ividend...............................................................
Capital............................................... $ 77,500,000
Surplus............................................... 162,500,000
Undivided Profits............................. 36,329,782
T o ta l............................................................

CLEVELAND E. DODGE
Vice-President, Phelps Dodge
Corporation

$4,567,484,131

A. P. GIANNINI
Founder-Chairman, Bank
of America National 'trust
and Savings Association

24,432.869
6,864,553

JOSEPH P. GRACE. JR.
President, W. R. Grace & Co.
JAMES R. HOBBINS
President, Anaconda Copper
Mining Company
AMORY HOUGHTON
Chairman of the Board,
Corning Glass Works

5,757,388
29,247,090
2,325,000

ROGER MILLIKEN
President, Deering, Milliken &
Co. Incorporated
FREDERICK B. RENTSCHLER
Chairman, United Aircraft
Corporation

276,329,782
$4,912,440,813

GERARD SWOPE
Honorary President, General
Electric Company

Figures o f Foreign Branches are as o f September 25, 1948.

REGINALD B. TAYLOR
Williamsville, New York

$320,142,528 o f United States G overnm ent Obligations and $737,230 o f
other assets are deposited to secure $216,951,291 o f Public and Trust Deposits
and for other purposes required or perm itted b y law.


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Federal Reserve Bank of St. Louis

(M e m b e r F ed era l D e p o sit I n su r a n c e C orp o ra tio n )

ROBERT WINTHROP
Robert Winthrop & Co.

4

Northwestern Banker, November, 1948

74

Iowa News

as a director and will retain 10 per
cent of the stock. The bank was es­
tablished in 1884 and has nearly three
million dollars in deposits.
The purchasers acquired 449 shares
at $350 a share. The bank is capital­
ized at $50,000 and has been paying
dividends at the rate of 20 to 30 per
cent for several years.

Buys Illinois Bank
Wilford A. Nelson of Allison, Iowa,
and Gerry D. Scott, Sr., of Wyoming,
Illinois, have purchased 51 per cent
of the stock in the First National
Bank of Lacon, Illinois, and took over
the management of that institution
November 1st, with Mr. Scott as presi­

★

★

dent and Mr. Nelson as executive vice
president. Tracy M. Hancock, who
has been cashier and active manager
of the bank for many years, will con­
tinue as cashier for the present.
The First National Bank of Lacon
has $50,000 capital, $125,000 surplus,
$60,000 of undivided profits, and $3,000,000 in deposits. It is one of the
oldest national banks in Illinois, hold­
ing national charter number 347, is­
sued in 1864. It is the only bank in
Lacon, the county seat of Marshall
county.
Mr. Nelson recently sold his stock
in the State Bank of Allison, Iowa,
and resigned his position there as vice
president, a position he had held for
a number of years.

★

It M u s t Be Frie n d ly !
Making and holding friends is the cardinal rule
of service at the First National Bank in Sioux City.
In every business transaction we strive for a close
and cordial relationship with our customer. Country
bankers who use our correspondent bank service
here say that is the friendly atmosphere that they
like and alw ays receive at the First National Bank
in Sioux City.

A. G. SAM, President
J. T. Grant, Vice President
H. H. Strifert, Assistant Cashier
J. R. Graning, Cashier
K. J. Shannon, Assistant Cashier
E. A. Johnson, Assistant Cashier
W. L. Temple, Assistant Cashier
J. Ford Wheeler, Auditor

This sale was negotiated by Bankers
Service Company of Des Moines, Iowa.

Carroll County Meeting
Robert M. Moehn, vice president of
the Commercial Savings Bank at Carroll, Iowa, was elected president of
the Carrol] County Bankers Associa­
tion at their annual meeting last
month at the Carroll Country Club.
J. P. Meinhardt, cashier of the Carroll
County State Bank at Carroll, was
named vice president and Louis
Schreck, cashier of the Templeton
Savings Bank in Templeton, was
elected secretary-treasurer.
The county association voted unani­
mously as being in favor of the recent
newly adopted program by the Iowa
Bankers Association and the Ameri­
can Bankers Association for new,
streamlined purchasing arrangements
under the Commodity Credit Corpora­
tion.
Representatives from all nine banks,
in the county were present for the
meeting.

Four County Meeting
Approximately 100 members at­
tended the quarterly meeting of the
Southwest Iowa Bankers Association,
held at the American Legion Country
Club at Villisca.
Speaker of the evening was Theo­
dore A. Spaustat of the Live Stock
National Bank of Omaha, Nebraska,
associate council of the American In­
stitute of Banking. His topic was
“ Employe and Bank Benefits derived
from membership and activity in the
American Institute of Banking.”
He was accompanied to Villisca by
Lester Souba, president of the Omaha
chapter of the AIB, and Carl Swan­
son, secretary of the Nebraska Bank­
ers Association.

L. H. BusssHe
L. H. Busselle, 83, president of the
National Bank and Trust Company
of Chariton, Iowa, died last month.

VOust NATIONAL
BANK
in SIOUX CITY
IOW A •LITHOGRAPHING •COMPANY
FOUNDED BY CEORGE H RAGSDALE •

•

•

EDWIN G. RAGSDALE

SECRETARY

315 TWENTY EIGHTH STREET

DES • M O I N E S

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

---------★
Northwestern Banker, November, 1948

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

★

★

Q U A L I T Y

•E X P E R I E N C E

• S E R V I C E

Iow a N e w s

He had been a resident of Chariton
for nearly 60 years and had been in
banking there a number of years.
When the Lucas County National
Bank was organized he was made
cashier, a position he held until the
bank was consolidated with the Chari­
ton Lucas County National Bank. He
became president of the National
Bank and Trust Company in April,
1930, at the time of its organization,
but had been inactive in bank affairs
recently.

Kimballton, Iowa, succeeding the late
Dr. Peder Soe.
Other board members are Dewey
Kuiken, vice president; Victor Trukken, cashier; Hans P. Hansen, Anker
Hald, Chris Hansen and Morten Nel­
son.

75

and Nebraska banker, who had lived
in Sioux City the last two years, died
in a hospital there last month.
Mr. Delavan was associated with the
banking business in Tabor, Iowa, and
in Omaha and Lincoln, Nebraska.

Will Transfer Bank
Opening of the Union Trust & Sav­
ings Bank in Fort Dodge, Iowa, on or

Nelson Delavan
Nelson Delavan, 62, former Iowa

Ames Bank Party
Clay Stafford, president of the Ames
Trust and Savings Bank at Ames,
Iowa, was host at the Stafford home
to 41 guests last month, including staff
members, their husbands and wives.
Among the honor guests were Mr.
and Mrs. Carl Gengenbach, w h o
moved recently from Oslo, Norway, to
Ames. Mr. Gengenbach is a teller in
the bank.

Resigns at Rippey
Clyde Smith, assistant cashier of
the First National Bank at Rippey,
Iowa, the past two years, has resigned
to accept a position in a Montana
bank. His place has been filled by
John Gartsee.
Mr. Gartsee has been operating a
farm near Rippey, operating farm
sales and assisting with income tax
work at the Rippey bank the past
three years.

T

H IS year, as in the years past, generous Americans will
send m illions o f dollars abroad at Christmas time to

needy relatives and friends.
During the coming months your bank will probably want
to publicize its foreign remittance facilities. T o help, we
have designed several inexpensive direct and indirect ad­
vertising campaigns for banks with either limited or exten­

Married in Des Moines
William Groote, vice president of
the Grundy National Bank, Grundy
Center, Iowa, was married in Des
Moines last month to Esther Pederson
of Des Moines.
Following the ceremony there was
a nuptial breakfast at the Savery Ho­
tel. Present at the breakfast were a
number of friends of the bride and
groom.
The bride has been associated with
the Massachusetts Mutual Life Insur­
ance Company for twenty years at
their Des Moines office. She will re­
tain her position there until the first
of the year, after which Mr. and Mrs.
Groote will establish their home in
Grundy Center.

sive remittance volume.
Y o u w ill find our rem ittance service to be eq u a lly
simple and efficient. It involves no complicated instruc­
tions, no books to be read. In fact, all that is needed is one
form for m ail, air mail, and cable payments, plus a schedule
o f service charges. A n d, o f course, payments entrusted to
us are transm itted direct from C hicago to the leading
banks in foreign countries.
W e will be happy to provide you with details without
obligation.

A M ER IC A N N A TIO N A L B A N K
AN D T R U ST C O M P A N Y O F C H IC A G O
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

LASALLE

Elect Kimballton Officers

AT

WASHINGTON

Alfred Nissen has been elected pres­
ident of Landmands National Bank at

Did you know that this company has specialized
in Bank Insurance since 1919—that it has the inside
view on Bank Insurance problems? Consult
us freely at any time.
F IR S T

N A T IO N A L B A N K


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Federal Reserve Bank of St. Louis

B U IL D IN G

•

C H IC A G O

Scarborough & ( Company
Insurance Counselors
3, IL L IN O IS

STATE

to Banks

4325

Northwestern Banker, November, 1948

76

Iowa News

SPECIALIZED
SERVICE
TO
MIDWEST BANKS

fcan h eM . RUBBER STAMP, INC
4 2 T N in t h S t e e e t
DES MOINES

about February 1, 1949, was an­
nounced last month.
The new bank will occupy quarters
at Central Avenue and Eleventh
Street, the former location of the Se­
curity Trust & Savings Bank.
Capital structure of the Union Trust
& Savings Bank will be $250,000, in­
cluding $150,000 in paid up capital,
$50,000 surplus and $50,000 undivided
profits.
Establishment of the new bank is
being effected by an amendment to
the articles of incorporation and char­
ter of the Burnside Savings Bank,
removal of this bank’s principal place

MANY MIDWESTERN BANKERS,
W H O SE C U S T O M E R S SHIP

of business to Fort Dodge and the
name change.
Along with these changes the cap­
ital stock of the Burnside Bank is
being increased and the number of
directors is set at seven instead of five.
The present banking quarters at
Burnside will be retained as a branch
of the Union Trust & Savings Bank
and the branch at Lehigh will also
continue to operate as in the past.
The building at Central Avenue
and Eleventh Street which will house
the new bank is to be completely re­
modeled into modern and up-to-date
banking quarters, it was announced,
with the Bank Building and Equip­
ment Company of St. Louis having the
contract ‘for this work.
Officers of the new bank will be
Dr. E. F. Beeh of Fort Dodge, presi­
dent; A. H. Johnson of Fort Dodge,
vice president, and Oscar B. Lundgren
of Burnside, vice president and cash­
ier. Mr. Johnson is now president of
the Burnside Savings Bank and Mr.
Lundgren is its cashier. An assist­
ant cashier is to be named in the near
future.
Directors will include the officers,
plus the following: W. F. Adams,
farmer living near Fort Dodge; R.
E. Kautzky, one of the owners of
Kautzky’s Sporting Goods Store, and
Herbert J. Horn, president of the
Horn Manufacturing company. A sev­
enth director will be selected from
the present membership of the Burn­
side bank board to replace the late
Grant Spangler, a director for many
years and president of the bank at
the time of his death early this year.

L I V E S T O C K TO C H IC AG O ,
R E C O G N IZE THE GENU IN E
UTILITY OF DROVERS FRIENDLY
SERVICE HERE IN THE ‘YARDS
AT THE CENTER OF THINGS,

~ n * .

C W

Members, Federal Deposit Insurance Corporation

Northwestern Banker, November, 1948


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

Redman Buys at Glidden
Just as we were preparing to go to
press, J. H. (Jim) Redman announces
that he has purchased 54 per cent of
the capital stock of the First National

Iowa
Bank in Glidden, Iowa, and will be­
come cashier and a director there on
January 3, 1949, succeeding Merle M.
Moore, who resigned some time ago
and will leave the bank January 1 to
look after his farming interests.

L. G. Hix, cashier of the Commercial
State Bank, is chairman of the study
group.
The class meets weekly in class­
rooms of the Central Towa Business
College.

News

11

Held under the sponsorship of the
American Institute of Banking, in
each three-hour class session students
will be taught the history of money
and banking, bank credits and other
related subjects.

Mr. Redman has a wide acquain­
tance among Iowa bankers, having
been identified with the State Banking
Department for over five years, first as
assistant state bank examiner, then as
examiner, and for the past two years
as assistant to N. P. Black, State
Superintendent of Banking. Before
he came to the banking department,
he was employed for seven years in
the Corn Belt State Bank of Correctionville, Iowa, where he served as
assistant cashier. His father, A. G.
Redman, a director in the Sac City
State Bank of Sac City, Iowa, was re­
cently appointed a member of the
Iowa State Board of Control by Gov­
ernor Blue.
The bank has 850,000 capital; $55,000
surplus and profits; and deposits of
over $2,400,000. H. W. Porter who
has been actively identified with the
bank for 47 years will continue as
president for the present. All other
active employes except Mr. Moore will
be retained. This sale was negotiated
by the Bankers Service Company, Des
Moines, Iowa.

Merchants National Director
W. E. Durin has been added to the
board of directors of the Merchants
National Bank of Cedar Rapids, Iowa.
Mr. Durin is sales manager of The
Terry-Durin Company of Cedar Rap­
ids.

Increase Capital

Time Required to Handle Your Transit Items
Distance is m inim ized b y the sp eed y handling of all transit
items sent to this pioneer 24-hour transit bank.

C om plete d a y

and night transit units elim inate a n y possible d e la y b y im m edi­
ately dispatching items direct to towns and cities throughout
the U. S.— sa vin g from one to three d a y s on a great m a n y items.
W ith more direct sending points than a n y other bank in the

The Iowa State Bank of Des Moines
increased its capital last month from
s i00.000 to $200,000.

United States . . . and private wire system to all principal
financial centers . . . the C om m erce offers you this service that
is unsurpassed for swiftness and efficiency.

Central AJ.B. Classes
A class of eighteen central Iowa
bank employes began a fourteen-week
course in money and banking in Mar­
shalltown, Iowa, last month, under
the tutelage of Will Lane, Sr., presi­
dent of the Security Savings Bank.
Marshalltown, and M. C. Berkley, a
director of the Fidelity Savings Bank.

(ommercefrust Company
G a.p.ita.1 tf-u ttcL i G'X.cee.cL = 2 / M illia -rt

K A N S A S C IT Y 'S L A R G E S T BANK
Established 1865

ÍnS
E
URAKCEE
CORPORATON

THE TOY NATIONAL BANK
A L W A Y S F R I E N D L Y C O O P E R A T I V E S ERVI C E
IN THE H E A R T OF D O W N T O W N S IO U X C IT Y


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

Member Federal Deposit Insurance Corporation
Northwestern Banker, November, 1948

78

Iow a N e w s

S io u x C ity N e w s
AST month employes of the Se­
curity National Bank of Sioux
L
City held their semi-annual picnic at
the shelter house in Stone Park. Vern
Jensen was chairman of the commit­
tee. Approximately 55 persons at­
tended. There was a very nice fried
chicken dinner followed by a very
short program. After the program
there was a dance. The picnic broke

up about 10 o’clock in the evening.
Ralph Brubacher, president of the
Toy National Bank, was recently ap­
pointed the state chairman of the
A me r i c a n
Bankers
Association’s
Treasury Savings Bonds committee
by the newly elected President,
Evans Woollen, Jr.

Members of the Sioux City Mort­
gage Bankers Association heard a
report by M. C. Eidsmoe, newly elect­
ed president, on the National Mort-

Invite

You

gage Bankers Association convention
held in New York City. Mr. Eidsmoe
is president of the Woodbury County
Savings Bank.
The other new officers are Laurie
Sloan, vice president, and Ran Sever­
son, secretary-treasurer.
John Haver, assistant cashier of
the Live Stock National Bank and
president of the Sioux City Chapter
AIB, reports a membership of 110 for
the 1948-49 term. Two classes are in
progress, one on Negotiable Instru­
ments, and the second a speech
course entitled “ Effective Speaking.”
Six forum dinners are planned, each
including a speaker and social hour.
Future forum dinners will be held
December 6th, February 7th, March
7th and April 4th. Visiting bankers
are cordially invited.
Bill Schenk, assistant vice presi­
dent and cashier of the Live Stock
National, visited the bank recently
after a four months illness. He ex­
pects to be back at his desk about the
first of the year.

to make full use of our services in
managing your portfolio

Red Oak Bank Sold
An important increase in the officer
staff of the Montgomery County Na­
tional Bank of Red Oak has been an­
nounced by President George W.
Artherholt.
Winfield S. Mayne, Sioux City, has
been appointed executive vice presi­
dent and a member of the bank’s
board of directors.
President Artherholt also announces
that he has sold a majority stock in­
terest to Mr. Mayne, who has already
taken over his new duties.
Mr. Artherholt will remain as pres­
ident for the present, but expects to
restrict his activities because of ill
health. It was announced that all
bank officers and employes would re­
main the same, except that Charles A.
Reese retires from the board of di­
rectors, with Mr. Mayne taking his
place. Wendell E. Strom continues as
cashier.
The staff increase is brought about

V Portfolio Counsel
V Security Transactions
V Security Safekeeping
Specialists engaged in managing our
own portfolio are available to assist
you with your portfolio problems.

Harris Trust and Savings Bank
Organized as N . W . Harris & Co. 1882 • Incorporated 1907

115 W est M o n ro e Street, C hicago 90
Member Federal Deposit Insurance Corporation

OES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION
O ld e s t in D e s M o in e s

210 6th Ave.

MA R Q U E T T E
■ilcï&c. ,v iS'.h.':, VWC
T H E

S T R O N G
MEMBER

OF
F R I E N D

FEDERAL

N

K

OF
DEPOSIT

T H E

I N D E P E N D E N T

INSURANCE

E L M E R E. M IL L E R
Pres, and Sec.

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

FOR YOUR ENJOYMENT . . .

M I N N E A P O L I S

Northwestern Banker, November, 1948


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

B A

Dial 4-7119

Listen to the

B A N K E R

CORPORATION

“ WORLD
K R N T , 1350 KC

OF

M U S IC ”

1 to 1 :30 p.m. Sundays

Iow a N e w s

through increased business activities,
reports President Artherholt. During
the 10-year interval since 1938, when
Mr. Artherholt became president of
the Montgomery County National
Bank of Red Oak, the bank’s deposits
have increased from $800,000 to over

79

Sioux City; and co-owner of the Smithland Lumber Company, Smithland,
Iowa.
Mr. Mayne was born in Council
Bluffs and attended the public schools
there. He later attended the State
University of Iowa. He is a 32nd
degree Mason and Shriner and while
in Racine was a member of the Rotary
Club there.

Mayne, who was actively engaged in
the practice of law during the 1870’s.
For the past four years Mr. Mayne
has resided in Racine, Wisconsin,
where he was active as president of
the Harvey Manufacturing Company,
Inc., nationally known manufacturer
of farm machinery and drop forgings.
Prior to that he was engaged in the
wholesale and retail lumber business
as vice president and manager of the
E. S. Gaynor Lumber Company in
Sioux City; vice president of the Farm­
ers Lumber and Supply Company,

Both parties in the sale of the bank
stock were represented by the Bank­
ers Service Company, Des Moines,
Iowa.

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W IN F IE L D S. M A YN E
Buys Red Oak Bank

as 1
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$4,000,000, without benefit of consoli­
dation, mergers or branches of any
kind.
The new bank officer and part
owner, Mr. Mayne, is a descendant of
an early day Red Oak family. He is
a great-grandson of Winfield Scott

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CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION

Ot HAINKINO EXI-ElilENOP

Mt. Pleasant, Iowa
E. A. HAYES, President
O. T. WILSON. Secretary
established 1929


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

Northwestern Banker, November, 1948

8U

Iowa News

Itluolismilh Oiii'f* M a d e
C opper Coias o f H is Oirn
Higley's Handiwork Was Crude,
But Pieces Are Valued by Collectors
WO hundred years ago a black­
smith living near the copper mines
of Granby, Connecticut, undertook to
mint his own copper mines. His in­
tentions were commendable for in
those days we had no national mint
and copper coins were none too plen­
tiful. John Higiey’s boldness in strik-

T

ing these coins under British colonial
government was magnified by the fact
that our early colonists were not even
permitted to smelt copper. It has
been said that Higley spent most of
the pieces he made at a near-by saloon.
The coins he designed and struck
were of quaint design. On one side

"HIDDEN"
COLLATERAL

That Field Warehousing
to LIGHT . . .

was the chief design, a deer with the
inscription, “ The value of three
pence.” On the reverse side was the
date, 1737, and either a broadaxe or
three crowned hammers, with the leg­
end, “ I am good copper,” or “ I cut
may way through.” The meaning of
the latter legend is obscure.
Some years ago another rare va­
riety was discovered by a Newr York
collector while he was looking through
a supposedly worthless lot of old cop­
per coins. Instead of the deer on the
obverse, the piece shows a wheel with
the inscription, “ The Wheel Goes
Round.”
This piece is the rarest of the Hig­
ley coppers, although all of them are
rare and usually bring up to several
hundred dollars each when offered at
auctions.—By Stuart Mother, editor
of The Numismatist.

brings

is a v a ila b le inventory of raw material
or finished g oo d s, on which the
W IL L IA M H. B AN K S W A R E H O U S E S ,
INC., issues its Field W a r eh o u se
Receipts.
T hese Receipts m a y be used a s collateral for a satisfactory
loan, while inventory rem ains stored on the prem ises of the
borrower, to be relea sed a s n eeded. The procedure is FAST,
SIMPLE and E C O N O M IC A L .

William H. Banks Warehouses, Inc.
General Offices:
209 S. LA SALLE STREET
C H IC A G O , ILLINOIS
Telephones: State 2-0294-0205
DES MOINES, IOWA
ANGOLA, IND.
★

Division Offices:
A
ST. LOUIS, MO.
W ESLACO, TEXAS
★
GRAND RAPIDS, MICH.

★

MADISON, WIS.
FAYETTEVILLE, ARK.

NEWS AND VIEWS
(Continued from page 22)
New York, was entertained at a din­
ner party in Des Moines recently by
George Olmsted, chairman of the
Hawkeye Casualty Company and
president of the Security Fire Insur­
ance Companies.
Mr. Morris believes that the Na­
tional Used Car Dealers of America
"have the greatest opportunity in the

M E R MCU H
AN TS
TUAL

BONDING
COM PANY
Incorporated 1933

S A V IN G S

Home Office
& L O A N B U IL D IN G

Des Moines, Iowa

@
This is Iowa’s oldest surety company.
A progressive company with experi­
enced, conservative management.
We are proud of our two hundred
bank agents in Iowa.

éfiectieekb cn S/fiecSa/SPefrwce

C e n t r a l Na t io n a l B a n k
IN CHICAGO

To be the exclusive representative of
this company is an asset to your bank.
©

E. H. WARiNER
Secretary and M anager

W. W. WARNER
Assistant Secretary

Northwestern Banker, November, 1948


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Federal Reserve Bank of St. Louis

Iow a N e w s

world to sell more cars at fair prices
to more people than the manufac­
turers themselves can sell after 1949
at the present prices for new cars.”
I>r. Marcus Nadler, economist, told

the American Hankers Convention
that he believes we will have a con­
tinuation of business activity, full em­
ployment, a large national income and

C O N V E N T KO N S
November 10-11, Nebraska Bankers
Association, Annual Convention,
Omaha, Hotel Fontenelle.
November 29-December 2, Financial
Public Relations Association, An­
nual Convention, H o lly w o o d ,
Florida. Hollywood Beach Hotel.
December 6-10, Annual Meeting, In­
vestment Bankers Association of
America, H o lly w o o d , Florida,
Hollywood Beach Hotel.

an increase in the volume of loans
accompanied by a moderate firming in
the money rates.
One banker interviewed by one of
the local newspapers during the De­
troit Convention, said, “ In our home
towns we live in fish bowls. We’ve
got to live conservatively or else busi­
ness reputations would suffer.
“ How would you feel if you saw the
president of the bank that has your
money spending bis afternoons at the
race track? Or if you saw him every
day in a bar—you'd worry about your
money, wouldn’t you?”

81

PU B LISH E R ’ S STATEMENT
Statement of the Ownership, Management, Cir­
culation, etc., required by the Act of Congressof March 3, 1933, of the N o r t h w e s t e r n
B a n k e r , published monthly at Des Moines, Iowa,
for October, 1948.
1. Name of Publisher: Clifford De Puy, Des
Moines, Iowa.
Associate Publisher, Ralph W.
Moorhead, Das Moines, Iowa. Editor, Henry H.
Haynes, Des Moines, Iowa. Associate Editors.
Ben Haller. Jr., Des Moines, Iowa, and Malcolm
K. Preeland, Des Moines, Iowa.
2. Owner :
N orth w estern
Banker
Com
p a n y . Stockholders Clifford De Puy and Prances
Prouty Da Puy, Des Moines, Iowa.
3. That the known bondho'ders, mortgages and
other security holders owning or holding 1 per
cent or more of total amount of bonds, mortgages
or other securities are: None.
R a l p h W. M o o r h e a d ,
Associate Publisher.
Sworn to and subscribed before me this 7th
day of October, 1948.
H enry H. H aynes,

Notary Public.
(My commission expires July 4, 1951)

May we quote that,
Mr. Author?
...thank you!

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“ Cashing a Check
U seA m erican Express
Travelers checks only
. . .A m e ric a n Express

EUROPE
.

, wvedwy.- •* ■

checks are know n to
a ll th e little p e o p le ;

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Y es , M r. Fieldin g is right. W e thank

DEPOSIT-BY-MAIL
Simplified banking by mail.
Time-saving convenience for
custom ers...for you. Handle
in slack periods, reduce er­
rors. Deposit slip bears post
mark , . . exclusive patented
flap protects contents.
In desired papers and colors.
Write for samples and prices.

h im —-and so w ill travelers every­
where. Your bank’s customers can
turn Am erican Express Travelers
Cheques into cash anywhere in to ­
day’s travel w o rld . . .
W h a t does this mean to you?
It means that w hen you sell A m er­
ican Express Travelers Cheques you
keep you r customers confident that

slightest question

of

their v a lid ity .”

you are p ro v id in g the best possible
service . . . the kind o f service that
brings customers back to you r bank
again and again.
For effective p oin t-of-sa le p r o m o ­
tion material, w rite W . H. Stetser,
V ice President, Am erican Express
Com pany, 65 Broadw ay, N ew Y ork
6, N . Y .

Protect Your Customers —Sell

A m erican E x p r e s s
ItNSioN Envelope Corp.
New York 14, N. Y.
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St, Louis 10, Mo.

T r ttr v iv r s

C h vq u vs

Mo st Readily A ccepted —Most Widely Known

Des Moines 14, Iowa
Kansas City 8, Mo.


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

Northwestern Banker, November, 1948:

Wrong View

Expectant

That’ll Teach im!

“ 1 feel sure, my poor man,” said the
sympathetic old lady, visiting a state
prison, “it was poverty that brought
you to this.”
“No, ma’am, quite the contrary,” re­
plied the prisoner. “ I happened to be
coining money.”

He: Now that it’s dark in here, I
want to ask you something.
She: Go ahead.
He: How do you like my bow tie
that glows in the dark?

Judge: Hank, I have known you for
many years. I am sorry that my first
duty is to try you for being intoxi­
cated. What was your reason, if any,
for getting drunk?
Offender: To celebrate your elec­
tion, your honor.

More important
“Your fiance is a charming man. He
has a certain something.”
“Yes, but I would rather he had
something certain.”

Long Trip
Slow Waiter: This coffee is im­
ported from Brazil.
Tired Customer: Well, whatta yuh
know? It’s still warm.

Table Manners
Mother: Stop reaching across the
table, Junior. Don’t you have a
tongue?
Junior: Yes, but my arm’s longer.

Embarrassing Moment
“What’s Sally so mad about?”
“ She stepped on one of those scales
with a loud speaker attachment and
the thing called out: ‘One at a time,
please!’ ”

A Natural
Jackson and his wife were doing a
little fly hunting about the house.
“ How many have you caught?” she
asked after a while.
“ Six,” renlied her husband, “three
males and three females.”
“ How absurd!” his wife sniffed.
“ How could you tell if they were
males or females?”
“ Easy, my dear,” he retorted. “ Three
were on the sugar and three were on
the mirror.”
i>

D a v e n p o r t , F. E. an d C o m p a n y ..................
De 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 u g l a s , J o h n an d C o m p a n y , I n c .............
D r o v e r s N a t io n a l B a n k ..................................

iNm :x o f
AOVEItTISFHS
A

It

B a k e r H o t e l ........................................................
B a n k o f A m e r i c a ...............................................
B a n k s , W i l l i a m H., W a r e h o u s e s , I n c . . . .
B a n k e r s R u b b e r S t a m p .................................
B a n k e r s S e r v ic e C o m p a n y . I n c ..................
B a n k e r s T r u s t C o m p a n y — D es M o i n e s . .
C
C e t n r a l H a n o v e r B a n k and T r u s t C o.. . .
C e n t r a l N a t i o n a l B a n k in C h i c a g o ...........
C e n t r a l N a t i o n a l B a n k and T r u s t C o . . .
Central N ational Insurance C o m p a n y ..
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 o ­
c i a t io n ...............................................................
C ha se N a t io n a l B a n k ......................................
C it y N a t io n a l B a n k an d T r u s t C o m ­
p a n y — C h i c a g o ...............................................
C i t y N a t io n a l B a n k an d T r u s t C o m ­
p a n y — K a n s a s C ity ....................................
C o m m e r c e T r u s t C o m p a n y . .........................
C o n t in e n t a l I l l i n o i s N a t io n a l B a n k an d
T r u s t C o m p a n y .............................................
•Continental N a t io n a l B a n k — L i n c o l n . .
C u m m i n s B u s i n e s s M a c h in e s C o r p ...........

Northwestern Banker, November, 1948


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

78
42
76

F

NOVEMBER. 1948
A d d r e s s o g r a p h Sales A g e n c y ......................
A l l e n W a l e s A d d i n g M a c h in e C o r p ........
A l l i e d M u t u a l C a s u a lt 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 o f St. J o s e p h . .
A m e r i c a n N a t io n a l B a n k an d T r u s t
C o m p a n y — C h i c a g o ....................................

34
52

37
18
53
48
81
44
75
64
50
80
76
27
83
8
80
16
34
79
4
63
46
77
9
45
40

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 io n a l B a n k — T i n c o l n ....................
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 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 .........................

<i

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

10
39
36
41
72
74
54
70
65

II

H a ls e y , S tu a r t an d C o m p a n y , I n c .............
H a r r i s T r u s t an d S a v i n g s B a n k ................
H o l l e y , D a y t o n an d G e r n o n .........................
H o l l i n b e c k S ta m p an d C oin C o m p a n y . . .
H o m e I n s u r a n c e C o m p a n y ...........................
H o n o r R o l l B a n k s o f N e b r a s k a ................

49
78
48
81
5
43

I

I n t e r - S t a t e N a t i o n a l B a n k ...........................
l o w a - D e s M o in e s N a t io n a l B a n k .............
I o w a L i t h o g r a p h i n g C o m p a n y ....................

38
84
74

Iv

K o c h B r o t h e r s ...............

76

I,

L a M o n t e , G e o r g e a n d S o n .............................
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 ive Stock National B a n k — C h i c a g o . . .
L i v e S t o c k N a t io 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 . .

3
52
25
66
60

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 a r q u e t t e N a t io n a l B a n k .............................
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 io n a l B a n k .............................
M innesota C om m ercia l M en’s A s s o c i­
a t i o n .............................
M innea polis-M olin e P o w e r Im plem ent
C o m p a n y ..........................................................

59
78
80
2

M

56
58

New Look
May: Isn’t your husband wearing a
new suit?
Fay: No.
May: He looks different.
Fay: He’s a new husband.

Whatsa Hurry?
Husband: Are you ready yet?
Wife: Stop nagging me! I told you
an hour ago I would be ready in a few
minutes.

Ever Happen to You?
Of all the surprises, there’s nothing
to compare
With treading in the darkness on a
step that isn’t there.
M is s is s ip p i V a l l e y T r u s t C o m p a n y ........... 79
M o d e r n F i x t u r e C o m p a n y ............................. 42
M o n r o e C a l c u l a t i n g M a c h in e C o r p ........... 44

N

N a t io n a l B a n k o f C o m m e r c e ......................
N a t io n a l C ash R e g i s t e r C o m p a n y ...........
N a t i o n a l C i t y B a n k — N e w Y o r k .............
N a t io n a l C o m p a n y o f O m a h a ....................
N e b r a s k a S al es B o o k C o m p a n y ................
N e w Y o r k T r u s t C o m p a n y ...........................
N o r t h e r n T r u s t C o m p a n y .............................
N o r t h w e s t S e c u r i t y N a t io n a l B a n k .........

41
7
73
^
32
6
70
62

O

O m a h a N a t io n a l B a n k .................................... 23
O r c h a r d an d W i l h e l m ...................................... 42

K

R e m i n g t o n R a n d , I n c ................................... , 11
R o y a l B a n k o f C a n a d a .................................... 57
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 m p a n y . 12
S c a r b o r o u g h an d C o m p a n y ...............38-51-75
S c h w e s e r , R o b e r t E., C o m p a n y ................ 42
Smith, P o l i a n an d C o m p a n y ...................... 40
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 o c i a t i o n 53
S t o c k Y a r d s N a t i o n a l B a n k — O m a h a . . . . 33
S t o c k Y a r d s N a t i o n a l B a n k — S outh
St. P a u l ............................................................ 56
T

T a l l m a n W o o d and E l e c t r i c S h o p ...........
T a x S u p p lie s C o m p a n y ..................................
T e n s i o n E n v e l o p e C o r p o r a t i o n ..................
T o y N a t i o n a l B a n k ........................................

70
72
81
77

U

U n it ed S ta te s N a t i o n a l B a n k — O m a h a . . 28
U n io n S t o c k Y a r d s C o m p a n y — O m a h a . . 35
V

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

\V

W a l t e r s , C h a r le s E., C o m p a n y ..................
W estern M utual F ire Insurance C o m ­
p a n y ............................................................
W estinghouse E lectric C o r p o r a t io n ....
W h e e l o c k an d C u m m i n s .................
W o o d m e n o f th e Wro r ld L i f e I n s u r a n c e
S o c i e t y ..............................................................

71
45
5'3
64
49
45

The value of a correspondent

bank connection is best measured in terms of its ability to handle

n
each phase of banking service with promptness and competence.
Such service is a basic reason for the continued development of
our correspondent business.

t


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

Member Federal Deposit Insurance Corporation

Member Federal Reserve System

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Saaeàfoftent

,O W A -0fS
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Na tion
[L- Ba n k

A high percentage of assets of Iow a ban ks continues to be in United States
G overnm ent securities.

Prudent m a n ag em en t of investment portfolios and

freguent review s are therefore an important bank activity.
A s a large owner of G overn m ent bonds, this Bank, through its officers and
directors, is giving continuing study and attention to them, a s w ell a s to high
grade M unicipal obligations.
If problem s arise in your Bank regarding distribution of maturities, the relation­
ship of bond holdings to taxes, or in other investment matters, a discussion
with our officers m a y be helpful to you.

Your inguiry is invited.

A Strong, Dependable Correspondent Connection

IOWA-DES MOINES NATIONAL BANK
Des Moines


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

Founded 1875
Member Federal Deposit Insurance Corporation