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N O V E M B E R 1949 How Public Relations And Advertising Help Our Bank — Page 17 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m F. RAYMOND PETERSON, NEW A.B.A. PRESIDENT— See Page 10 H i ' - '\:M O F F IC E R S J a m e s E. H a m il t o n , Chairman Executive Committee S. E . COQUILLETTE, Chair-man of the Board J o h n T. H a m ilt o n II, President IO r, t M a r k J . M y e r s *, R. D. B r o w n , Asst. Cashier Vice President F red W . S m i t h , O. A . K e a r n e y , Vice President il “ Asst. Cashier G eorge F . M ille ®, Stan ley J . M oh rbacher, Vice President and Trust Officer Asst. Cashier E verett C. P r a t t , M a r v in R . S e ld e n , Asst. Cashier Vice President C. F. P e r e m s k y , Asst. Cashier R . W. M a n a t t , ri I - ‘II! ï'M !?r\ni Vice President L. W. B r o u l ik , Vice President V ictor W . B r y a n t , P eter B a il e y , J a m e s E . C o q u il l e t t e , Asst. Cashier Asst. Cashier Cashier i -4 ♦Deceased YOU ARE INVITED to hear The Merchants National Hour over WMT, 9 to 10 each Sunday evening . . . an outstanding production used to promote banking in Iowa. ¡¡i1 'N r^r • Ä■ iPÂàs?®^ 1 M s * 9 /J ïïf' ^ vill r!p 'AS )¡Ú-V Gîmnt W ood Ary Sound Bank Protects Community Interests Our system of independent banking is the foundation of our economic system. Every individual must be reminded regularly that our nation could not have made such rapid strides without the help and guidance of our in dependent banks. By fostering the progress of community businesses, local banks encourage national growth. Throughout this area, the majority of local bankers are correspondents of The Merchants National . . . a dependable connection which enables you to provide your customers with unexcelled, nation-wide service. the Merchants National bank C E D A R R A P I D S I O W A Member Federal Deposit Insurance Corporation No. 748. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 In the field of sports, risk is accepted as part of the game. But in banking, safety always comes first. In choosing La Monte Safety Papers, the Banker provides his customers with the ultimate in check protection . . . plus an extra dividend of quality. That perhaps explains the position of leadership enjoyed by La Monte Safety Papers the nation over. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 alteration and counterfeiting — makes identification positive. UNES ® ARE A (A MONTE TRADE-MARK No rthw estern Banker, November, 1949 4 Bankers all over America... Because each one of them receives the prompt, per sonal attention of experienced officers who devote all their time to correspondent bank relationships, banks B A N K S A N D B A N K E R S D IV IS IO N Vice-President Vice-President H a r o l d W. L e w is Vice-President A I e l v in H . T h ie s Assistant Vice-President V e r n e L . B a r t l in g Assistant Vice-President C harles F. N ew h all Assistant Cashier E dw ard D ecker Assistant Cashier V ic t o r C . v o n M e d in g Assistant Cashier L a w r e n c e J. B e r r y Assistant Cashier J o h n J. A nton T h o m a s J. N u g e n t all over America use the First in Chicago. You, too, are cordially invited to avail yourself of the many advantages assured by our unique divisional organization —under which each officer is intimately acquainted with the activities, trends and financial problems of particular industries. E d w a r d E. B r o w n , Chairman of the Hoard H a r o l d V . A m b e r g , Vice-President W a l t e r M . H e y m a n n , Vice-President B e n t l e y G. M c C l o u d , President Ta m e s B. F o r g a n , Vice-Chairman I r v in L. P o r t e r , Vice-President H o m e r J. L iv in g s t o n , Vice-President H u g o A . A n d e r s o n , Vice-President H e r b e r t P. S n y d e r , Vice-President The First National Bank of Chicago D e a rb o rn , M onroe a nd C la rk Streets B u ild in g w ith C h ic a g o Since 1863 MEMBER N o rthw e ste rn Banker, Novem ber, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL D EPO SIT IN S U RA N C E COR PO R ATIO N as a result of which a young Cherokee asked and was granted permission to adopt his name. In his will were many generous be quests including $200 to buy spectacles for the poor. Boudinot left Boxwood Hall after his appointment as Superintendent of the LI. S. Mint at Philadelphia. The next owner was Jonathan Dayton, youngest signer of the Constitution, for whom the City of Dayton, Ohio was named. After serving as a school for young ladies, a boarding house and a home for a n “ elegant barge” rowed b y twelve * white-garbed sea captains, George Wash ington was ceremoniously conveyed from New Jersey to New York City for his in auguration as first President. The chairman of the Congressional Committee accom panying him was Elias Boudinot who, be fore embarking, had entertained Washing ton and other distinguished guests at luncheon at his home in Elizabethtown, New Jersey. The first owner of the house where Wash ington was entertained— and quite possibly its builder— was Samuel Woodruff, wealthy merchant and trustee of Princeton College, who lived there in the years previous to his death in 1768. In 1772 Boxwood Hall, as the house was thereafter known, was bought by Elias Boudinot, the fourth of his name in this country. As a lawyer, statesman, patriot, scholar and philanthropist, Boudinot was one of the most remarkable men of the Revolutionary period. As Commissary-Gen eral of Prisoners, he labored to secure humane treatment for British captives and devoted much time and effort to relieving the sufferings of American prisoners of war. When Congressional funds were lacking Boudinot advanced nearly $30,000 of his own money, though he realized that the possibility of repayment was dubious. During the Revolution the British Com missioner, Lord Robertson, was so ill-ad vised as to approach Boudinot with the hint that the choice of a dukedom or 10,000 pounds a year was available to the man who would undertake to settle “ the un happy dispute.” Later, trying force instead of bribery, the British ransacked BoudinoLs home in search of the “ great rebel,” but in aged women, the house was acquired by the State of New Jersey. It is now main tained by the State Bureau of Historic Sites, still bearing the name of its most illustri ous owner. ★ The Home, ★ ★ through its agents and brokers, is America’s leading insurance protector of American homes and the homes of American industry. The metalware by this ornate fireplace is kept gleaming, fortunately he was attending the Continental Congress in which he served three successive terms. In 1782 he was chosen https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis President of the United States in Congress Assembled, the highest civil office of the pre-Constitution government, in which capacity he si°ned the treaty of peace with Great Britain. Among Boudinot s many philanthropic activities was the education of the Indians, a THE HOME a C eyriy Home Office: 59 Maiden Lane, New York 8, N.Y. FIRE • AUTOMOBILE • MARINE The Home Indemnity Company, an affiliate, writes Casualty Insurance, Fidelity & Surety Bonds Copyright 1949, The Home Insurance Company Mosler BANK VAULTS ]NJo great surprise that the first two Federal Reserve Bank Vaults ordered since the war (Seattle, Washing ton and Portland, Oregon) should be built by Mosler. Because, for more than a century, banks the world over have depended upon Mosler’s complete line of fine equipment for the best fire and burglary protec tion available. Of all the Bank Vaults installed throughout the world by Mosler, not one has ever failed to give complete protection. Reason enough why no bank can afford not to check with Mosler before ordering protective equipment of any kind from safe deposit boxes to bank vault installations. M o s le r S a fe &>. Main Office: 320 Fifth Avenue, New York 1, N.Y. Factories: Hamilton , O . Builders of the U. S. Gulf Storage LA RG EST BUILDERS O F SA FES A N D VAULTS IN THE W O RLD Vault Doors at Fort Knox, Ky. Northwestern Banker, November, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Boston Chicago Philadelphia Pittsburgh Washington, D. C. Atlanta Baltimore Cincinnati Covington, Ky. Minneapolis Dallas Houston Denver Detroit Kansas City Los Angeles Portland, Ore. St. Louis San Francisco York, Pa. Pensacola, Fla. 7 " T A K E A LETTER " . . . We have been with you so long, and you do so many nice courtesies, / do not know how we could get along without you.” Received from a Mid-Western bank W e are proud to have this letter in our files— along with many others expressing similar appreciation. They are additional proof that Chase correspondent services are welcomed by our banking friends throughout the country. Am ong specific services available to our correspondents are: C r e d it in f o r m a t io n o n firm s a n d in d iv id u a ls , h e r e a n d a b r o a d Q u a r t e r - h o u r a n d h a lf - h o u r m a il p ic k - u p s e r v ic e a r o u n d t h e c lo c k Q u ic k c o lle c tio n o f c h e c k s , n o t e s , d r a f t s , c o u p o n s a n d c a lle d a n d m a t u r e d b o n d s P a r t ic ip a tio n in lo c a l lo a n s w ith c o r r e s p o n d e n t b a n k s D e a le r s in S t a t e a n d M u n ic ip a l B o n d s E x e c u t io n o f o r d e r s f o r p u r c h a s e a n d s a le o f a ll c la s s e s o f s e c u rit ie s A n a ly s e s o f in v e s t m e n t p o r t f o lio s . . . S a f e k e e p in g o f s e c u rit ie s E x p e d it in g f o r e ig n t r a n s a c t io n s t h r o u g h b r a n c h e s a n d c o r r e s p o n d e n t s o v e r s e a s For further details, write fo r our fold er THE CHASE NATIONAL BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C h a s e Se r v ic e s Fo r C o r r e s p o n d e n t B a n k s THE CHASE NATIONAL BANK O F THE C I T Y OF NEW Y O R K M em b er Federal D ep osit Insurance Corporation N o rthw e ste rn Banker. November, 1949 LEND Against Your CUSTOMERS’ INVENTORIES A i Warehouse Receipts Loans are a practical solution of the financing problems of those concerns whose volume of business has outgrown their working capital position. Assets represented by their inventory of agricultural products, raw materials or finished products can be converted into sound banking collateral through our Field Warehousing plan. The inventory remains stored V on your customers’ premises. A Warehouse Receipts loan is a secured loan and enables you to lend safely and profitably . . . often in excess of open-line credit limits. ST. PAUL Upon your request and without obligation to you , our representative will gladly call and discuss our Field Warehousing plan in detail. TERMINAL WAREHOUSE COMPANY DES MOINES OFFICE 511 Iowa-Des Moines National Bank Bldg. OMAHA OFFICE 1105 First National Bank Building T. C. CANNON District Manager Telephone Atlantic 9611 N o rthw e ste rn Banker, November, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 425 East 8th Street, St. Paul, Minnesota OFFICES ALSO LOCATED IN MINNEAPOLIS MILWAUKEE CHICAGO DETROIT V 9 The following letters are from Northwestern Banker readers. Your views and opinions on any subject are welcome in this column. "Greatly Appreciated" “ I was pleased to see the nice manner in which you handled our 'new Toronto Branch’ story in your latest issue o f the N o r t h w e s t e r n B a n k e r , and I want you to know that it is greatly appreciated.” Munro Brown, Mgr. Public Belations Dept. Bank o f Montreal Montreal, Canada "Outstanding Magazine" " I cannot let my term as president of Iowa Bankers Association expire without telling you how much I appreciate the pub licity accorded the Association by the N o r t h w e s t e r n B a n k e r , and your fair cov erage o f all items. “ The N o r t h w e s t e r n B a n k e r is truly an outstanding magazine, and you have my heartiest wishes for your continued success.” Harry W. Schaller, President Iowa Bankers Association Storm Lake, Iowa "Tribute to Bankers" “ We are happy to read in the N o r t h w e s t e r n B a n k e r the tribute you paid to the bankers who have contributed so greatly to the success o f the Opportunity Drive and to the entire Savings Bonds program over a period o f years. Likewise we are glad to recognize with you the fine accomplish ment of the midwestern states which so handsomely exceeded their Opportunity Drive quotas. You emphasize an important benefit when you state that wide distribu tion o f the national debt makes more people more conscious and more aware of what their Government is doing with their money. “ However, I must disagree with your statement that 'obviously there would be no need to sell any bonds if the administra tion which has been in power over 17 years was operating on a business basis and liv ing within its income.’ The magnitude of Savings Bonds maturities, which amount to about $22 billion in the 5 years beginning in 1950, and to about $29 billion in the 5 years beginning in 1955, is one which must be refinanced as largely as possible through new sales o f these bonds. (Turn tao page 71, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN THIS NOVEMBER, 1949, ISSUE EDITORIALS A cross the Desk from the P ublisher................................................ ....... 12, 13 FEATURE ARTICLES D ear E ditor ...................................................... ....... .......................................... On the Cover ....................................................................................................... Frontispage .............................. H ow Public Relations and A dvertisin g Help Our Bank..................... ............................................... .......... A N o r t h w e s t e r n B a n k e r Survey W hat I Saw and H eard in France and Ita ly ........H arm on K opperu d Financial Public Relations Convention H its Record............................. News and View s o f the Banking W orld .............. Clifford D e P a y 20, Bankers You K now — Ellsw orth M oser........................................................ Can Federal Convictions Be Used A g ain st State Bank R ob ber?...... ............................................................................................— Legal Questions 9 10 15 17 18 19 21 22 24 BONDS AND INVESTMENTS W hy Cushion Bonds A re Good f o r Y ou r P o rtfo lio ..Raym ond T rig g er 33 INSURANCE H ow Insurance Protects Y our B ank............................W illiam J. Schiff 37 STATE BANKING NEWS M innesota News ................................................. Tw in City News ..... South Dakota N ew s................... Sioux Falls N ew s................................................. N orth Dakota News ......................................................................................... Nebraska New s— W. H. Pierce W ill Head Nebraska Bankers in 1949-50................ N ebraska Convention P ictu res............................................... Omaha News ........................................ ...................... ............................. . Iow a News— Iow a Bankers E lect J. F. Kennedy P resident.................................. Iow a Convention P ictu res.......................... In the D irectors Room— A F ew Short Stories to Make Y ou L au gh ............. .................................... Conventions ................................................................................. 41 44 47 47 49 51 53 56 61 63 74 74 NO RTHW ESTERN BANKER 527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163 CLIFFORD DE PUY RALPH W. MOORHEAD Publisher Associate Publisher HENRY H. HAYNES BEN J. HALLER, JR. MALCOLM K. FREELAND Editor Associate Editor Associate Editor ELIZABETH COLE H A ZEL C. STEPHENSON SADIE E. WAY Advertising Assistant Auditor Circulation Department PAUL W. SHO O LL JOSEPH W. FRANKS Field Representative Field Representative NEW YORK OFFICE Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806 MUrray Hill 2-0326 DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review, Iowa-Nebraska Bank Directory. No rthw estern Banker, November, 1949 10 ON TH E COVER credit information? . . . market data? . . . who’s who ? Whatever your requirements — routine hank ing service, special information, or off-the-beatenpath assistance — the chances are that the facil ities, long experiences and statewide contacts of the first Wisconsin National Bank of Milwaukee can supply the answer. This bank is the largest in the state . . . 30th in size among all banks in America . . . and over 90 per cent of the hundreds of banks throughout Wisconsin are First Wisconsin correspondents. '■■■— Member of the Federal Deposit Insurance Corporation No rthw estern Banker, November, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F. Raymond Peterson was elected president of the American Bankers Association at the 75th annual con vention concluded recently in San Francisco, California. Mr. Peterson was advanced from the vice presi dency to succeed Evans Woollen, Jr., chairman of the board, Fletcher Trust Company, Inadianpolis, Indiana. Mr. Peterson has been chairman of the board of the First National Bank and Trust Company of Paterson, New Jersey, since 1942. He joined that bank in 1936 as executive vice presi dent, was elected president the follow ing year and served in that capacity for the next five years until his ele vation to the chairmanship. He has a distinguished record of service both with the New Jersey Bankers Association and with the A.B.A. In New Jersey he was chair man of the state legislative committee from 1938 to 1944, served as treasurer during the 1944-45 term, was elected vice president in 1945 and president of the state association in 1946. In A.B.A. activity he was on the executive committee of the national bank division from 1939-45, serving as chairman from 1941-43 and president of the division in 1943-44. He was elected vice president of the A.B.A. at the convention in Detroit last fall. Mr. Peterson was born in Farlington, Kansas, November 13, 1895. He was educated in Kansas schools, the Gem City Business College in Quincy, Illinois, and New York University. He was married to Grace Crouch on De cember 31, 1919. His first hanking experience was gained while a lieu tenant in the Finance Department of the United States Army during World War I. He then became a Kansas state bank examiner, later an officer of banks in Kansas and Oklahoma, then served as a national bank exam iner, in the Tenth, Eighth, Eleventh and Second Federal Reserve Districts from 1922 to 1935. It was from the latter position that he changed to join the First National Bank in Pater son, New Jersey. PUBLISHER’ S STATEMENT Statement of the Ownership, Management, Cir culation, etc., required by the Act of Congress of March 3, 1933, of the N o r t h w e s t e r n B a n k e r , pub lished monthly at Bes Moines, Iowa, for October, 1949. 1. Name of Publisher: Clifford De Puy, Des Moines, Iowa. Associate Publisher, Ralph W. Moorhead, Des Moines, Iowa. Editor, Henry H. Haynes, Des Moines, Iowa. Associate Editors : Ben Haller, Jr., Des Moines, Iowa, and Malcolm K. Freeland, Des Moines, Iowa. 2. Owner: N orthw estern B a n k e r Co m p a n y . Stockholders, Clifford De Puy, Des Moines, Iowa, and Frances Prouty De Puy, Des Moines, Iowa. 3. That the known bondholders, mortgagees and other security holders owning or holding 1 per cent or more of total amount of bonds, mortgages or other securities are: None. Ralph W. M oorhead, Associate Publisher. Sworn to and subscribed before me this 4th day of October, 1949. H enry H. H ayn e s , Notary Public. (My commission expires July 4, 1951) 11 IMItKITO Its EDWIN J. BEINECKE Chairman, The Sperry & Hutchinson Co. M A .vi i n TRUST n it E R S COMPANY EDGAR S. BLOOM Chairman, Atlantic, Gulf and West Indies Steamship Lines ALVIN G. BRUSH Chairman, American Home Products Corporation LOU R. CRANDALL President, George A. Fuller Company CHARLES A .D A N A Chairman, Dana Corporation HORACE C. FLANIGAN Vice-Chairman of the Board JOHN M. FRANKLIN President, United States Lines Company PAOLINO GERLI President, Gerli & Co., Inc. HARVEY D. GIBSON President FREDERICK GRETSCH President, Lincoln Savings Bank JOHN L. JOHNSTON Director, Lambert Company OSWALD L. JOHNSTON Simpson Thacher & Bartlett KENNETH F. M acLELLAN President, United Biscuit Company o f America JOHN T. MADDEN President , Emigrant Indus trial Savings Bank JOHN P. MAGUIRE President, John P. Maguire & Co., Inc . C. R. PALMER Director, Cluett Peabody & Co., Inc. GEORGE J. PATTERSON President, Scranton & Lehigh Coal Co. WILLIAM G. RABE Vice President HAROLD C. RICHARD Hew York City HAROLD V. SMITH President, Home Insurance Co. ERNEST STAUFFEN Chairman, Trust Committee L. A. VAN BOMEL President, National Dairy Products Corporation GUY W. VAUGHAN Chairman, Wright Aeronautical Corporation HENRY C. VON ELM Chairman o f the Board ALBERT N. WILLIAMS President, Westinghouse Air Brake Company https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Condensed Statement of Condition as at close of business September 30, 1949 It ESOURCES Cash and Due from Banks . . . . U. S. Government Securities . U. S. Government Insured F. H. A. M o rtg a g e s.................................... State and Municipal Bonds Stock of Federal Reserve Bank Other S ecu rities.............................. Loans, Bills Purchased and Bankers’ Acceptances................................... M o rtg a g e s........................................ Banking H o u s e s .............................. Other Real Estate Equities Customers’ Liability for Acceptances Accrued Interest and Other Resources 608,089.064.87 998,899,704.33 13,440,616.36 36,272,271.33 3,150,000.00 17,566,121.87 555,237,009.89 14,431,852.68 10,179,102.03 450,815.40 4,016,079.69 6,547.518.02 >,268,280,156.47 LIABILITIES C a p ita l....................... $45,000,000.00 Surplus . . . . 60,000,000.00 Undivided Profits . 32.093,716.47 Reserve for Contingencies . . . . Reserves for Taxes, Unearned Discount, Interest, etc. . Dividend Payable October 15, 1949 Outstanding Acceptances . . . . Liability as Endorser on Acceptances and Foreign B i l l s ......................... Cash held as Collateral or in Escrow D e p o s its............................................ Î 137,093,716.47 4,505,491.12 8,905,314.01 1.350,000.00 4,552,297.88 2,584,796.63 14,921,623.15 2,094,366,917.21 $2,268,280,156.47 United States Governmentand other securities carried at $91,091,645.49 are pledged to secure public funds and trust deposits and for other purposes as required or permitted by law• 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 Member Federal Reserve System Member New York Clearing House Association Member Federal Deposit Insurance Corporation No rthw e ste rn Banker, Novem ber, 1949 12 Across the Desk From the Publisher (b sicU t, Q d Iw l . J 'ji& J w u : Writer and Former Bureaucrat Your article on “ Truman and Company, Ltd.,” in Harper’s Magazine, gave us a number of pleas ant chuckles and some broad political smiles. You certainly have analyzed the “ boy with the haberdashery background” and his present politi cal associates in a very interesting and amusing manner as these 10 paragraphs indicate. 1. The most noticeable difference between the present Administration and the New Deal is about 80 pounds, comfortably larded around the bureau cratic paunch. The skinny, hot-eyed ulceroid characters who infested Washington ten years ago are now extinct. Their Potomac feeding grounds, from the Pentagon to Capitol Hill, have been taken over by a different and less alarming species. 2. They run as true-to-breed as a litter of Poland China pigs; plump, baldish, sedentary, bespec tacled, ruminative and cautious. You can’t spot a single long-fanged, carnivorous type in the whole herd. 3. Many professional liberals are melancholy because they were sure that the election meant a rebirth of the New Deal, with fresh agencies sprouting from every crevice and bankers bar becued on alternate Thursdays. 4. Dean Acheson looks like a paragon of clar N o rthw e ste rn Banker, November, 7949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ity and vigor in comparison with the agonizing indecision of Cordell Hull, the imposing vacuity of Edward Stettinius, or the weary detachment of George Marshall. For the first time in many years, a Secretary actually is running the State Department. 5. Louis Johnson very probably lacks the ma chine-tooled brain of a Forrestal or the monu mental stature of the aged Stimson. Occasionally he has shown a regrettable fondness for showy gestures and ill-considered talk. Already he is panting hard for the next Presidential nomina tion, and politics clearly is in the front of his mind at every moment. And yet he does have one advantage which is peculiarly appropriate for the job ahead of him; he is an ornery, hard-bitten character who will by damn run his own show if it kills every admiral in the fleet. 6. The bookkeeping and inventory systems used by the Army, Navy and Air Force would bank rupt a pop stand; but they all find it necessary to support a horde of publicity men beyond the wild est dreams of Hollywood. If Johnson can pound habits of thrift into that kind of organization— and so far he’s had little encouragement from Congress—he will deserve a special medal for Heroic Housekeeping. 7. The Commerce Department is a random col lection of unrelated bureaus which never did have much team spirit or sense of mission. Today the Bright Young Men infiltrated by Henry Wallace have become almost indistinguishable from the grizzled bureaucrats recruited a generation ago by Herbert Hoover. With equal deliberation they peer at their tables of statistics through bifocal glasses, remember their rubbers on every rainy day and await their pensions. They all know that their Secretary, Charles Sawyer, is out of sym pathy with much of the President’s program; that his political assets are negligible; that he has no plans of consequence for the Department; and that he probably won’t be around long anyway. 8. A similar case is the Treasury— once a very hive of New Deal schemers, and now just another refuge for human comptometers. We can be con fident, however, that nobody will make off with the public treasure so long as Honest John Snyder is on guard. 9. The present system of rigged prices for agri culture is too ridiculous to survive indefinitely -—and it will look even sillier as big surpluses begin to pile up this fall. Last year, for example, the government paid out $200 million to hold up the price of just one crop—potatoes. There were three results, all fantastic: (1) Potato growers nicked the treasury for an average of $5,457 each. (2) Sure of a lush profit, they grew thousands of tons of spuds that nobody needed. (3) The con- 13 sumer paid twice over for every potato he ate, once in taxes and again in a whopping artificial price at the grocery store. Already a similar situation is threatening in pork and other sur pluses aren’t far off. Without it, I see the world becoming a vast and melancholy desert, peopled only by dreary and impoverished collective farms, amid the fossilized remains of refrigerators and the phantoms of washing machines.” We, too, hope that “ America can make the 10. What all this comes to is a modest extension miracle come true” and that there will be a re of the original New Deal— one more step toward birth of western civilization. the Welfare State, if you like, but a cautious one. So, again, Mr. Dali, we say that even if you No doubt that caution will increase next year, as paint crooked lines, you really do think straight. the rather frightening state of the government’s finances becomes more apparent. A deficit of $4 to $6 billions is in prospect for the new fiscal year, (D a c Ul d lw v u j^ (B h id q s iA .: on top of the present debt of $252 billions. It is becoming obvious that even this country can’t Longshore Leader and Law Breaker move very rapidly toward a Welfare State so If a law is passed which is favorable to union long as it is fighting a cold war, rebuilding Europe labor and it is violated by the employers, the and carrying a military burden of more than $15 unions would be the first to object if such a situa billions annually. tion developed. It therefore seems to us, Mr. Bridges, that you are not helping the cause of labor when you violate (D slcV i. S ctlv ja d & L C b a lL : a court order restraining pickets, which you did recently in Honolulu. Artist, Writer and Traveler The laws of the land should be obeyed by em There are many of your modernistic drawings ployers and by the labor unions if we expect to and paintings which look like the “ inside works” have harmony and peace in our industrial rela of a clock all scattered on the floor— or should we tions in this country. say canvas— but after reading a report of your Just the other day, Mr. Bridges, a gentleman recent trip to Europe, we decided that you still who no doubt is a friend of yours, Howard John did have an organized mind and could “ think son, educational director in New York City for straight” even if your drawings are all crooked American Communists, said they were a “ greatly and disconnected. misunderstood group” and that a United States After being away from Europe for 10 years, you revolution would not be something “ bloody,” returned and motored through a number of coun but that such a revolution would mean, “ The tries and apparently your motor car attracted majority of the working people no longer want to more attention than anything else. tolerate things as they are, and would take steps Your motor car was a reminder of the modern to change the rule from one class to another. ’ ’ up-to-date streamlined America in which we live, Perhaps changing the power from one class to and a civilization which is the envy of most of the another, which is what you want to do, Mr. people of the world. Bridges, and what Mr. Johnson wants to do, As you say, “ The American legend is growing would be a desirable thing in your estimation, but steadily. During the war, Europe got its first may we remind you that a recent report of the glimpse of America’s overwhelming technical Federal Reserve Board at Washington shows that efficiency. Now the rumors of America’s high half of the families of the United States now earn standard of living are confirmed by new facts $3,200 or more and the family income is $720 every day. larger than it was in 1946. Does any Communist“ Just one of many such facts was the sight of controlled country show such a record? our American car. To hundreds of people in the America doesn’t need a revolution—it needs a squares of old Mediterranean villages it made real resolution on the part of its citizens to live up to the dream of a standard of life which now exists the basic freedoms which made it great, and to only in America. It was the symbol of a miracle. get rid of such malcontents as yourself and such Communists as Howard Johnson. “ I hope with all my heart that America can make the miracle come true. I hope that America, with its great technical skill, can revive the ailingbody of Europe. If so, I predict that a grateful Europe will unite its destiny, its spirit and its soul with the New World. With such a union of spiritual and material forces, there can then be a thrilling Renaissance of Western Civilization. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis No rthw e ste rn Banker, November, 1949 14 . im m m m «m m m m ^ ^ • * * * * * -»* > :m ■ . . ................................................................................ .. .......... ...............ills ;=i;. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis When it comes to serving the best interests of our Correspondents, we plow a straight, unwavering furrow. :-;' %:i I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, November, 1949 To the A C C U R A C Y , DEPENDABILITY and SPEED of Alien-W ales adding machines have now been added modern styling and pleasing color —the bright look for the right figures. A L L E N W A L E S ALLEN-WALES ADDING MACHINE DIVISION OF THE NATIONAL CASH REGISTER COMPANY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 4 NEW MADISON YORK AVENUE 22, N. Y. 17 H ow P ublie Itelo lions unti A d vert ¡sin y H elp Our Hunk Promotion and Advertising Directors Tell Their Successful Methods of Publicizing Their Bank A NORTHWESTERN BANKER Survey L AST month the N o r t h w e s t e r n presented the answers of several members of the Financial Public Relations Association to the question, “What are you doing to pro B anker mote public relations in your bank?” This exclusive survey for N o r t h w e s t e r n B a n k e r readers shows how vital to a complete public relations program are the many varied activities that come under the headings of “good will,” “customer relations,” “ advertis ing” or just plain “business promo tion.” The following comments are the second and concluding installment in this survey among advertising and public relations experts: A Minnesota banker: “ It is difficult to pick out those things which we do and to designate those as the most im portant, as we feel that to promote public relations properly a number of related things must be done. “Our officers and employes are: 1. Making frequent calls on our cus tomers at their places of business. 2. Participating in, civic affairs, thus identifying our bank closely with any movement to promote the growth and development of our city and this area. 3. Sending communications to indi viduals, groups or firms at the time of individual promotions, successful achievements or the at tainment of an anniversary date of the opening of their account with our bank. 4. Sending letters of condolence to our customers at times of bereave ment, and offering to be of help. 5. Making our front windows avail able to businesses, individuals and organizations of the city for dis play purposes. 6. Making available to our custom ers diaries, calendars, blotters, budget books, savings books for children, etc. 7. Cooperating with new residents in finding them a home.” Wm. N. Mitten, president, The Stephens National Bank, Fremont, Ne braska: “The policies governing pub lic relations for banks, or any other business, are a problem nowadays. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis To me it has always been one of the most interesting parts of our business. After all, new customers come to any bank largely through the recommen dation and endorsement of old cus tomers. We have followed over the years the usual advertising in local newspapers, screen advertising, radio advertising, signboard advertising, but personally I still feel that good will which you established through fair and courteous treatment with your old customers is what brings the business to you. “We write letters to everyone who opens an account with us. We also write many of the customers when they close an account which they have had with us. Sometimes we make per sonal calls, all according to the cir cumstances. We have found that it isn’t the big things you can do for your friends and customers to build good will as much as it is the smaller things in recognition of anyone who has accomplished something or has been given some honor. It only takes a little while to write a note to people but too many of us are too busy with our own business most of the time and overlook these little things.” ^ «• »V 1 \ fs ? : K X : Will A. Lane, president, Security Savings Bank, Marshalltown; Iowa: “ I am one of those who believe that good public relations is a 365 day a year program. It cannot be effected by a splurge now and then or a hunch that ‘now is the time.’ In our bank we cling to the 365 day a year program with the endeavor always to give a little more service than the customer expects and get it to him before he has to ask for it. “ Of course there are special events such as 4-H Boys and Girls Clubs, better soil control programs, such as sending Soil Conservation magazine to everyone in the soil program and to every rural school in the county inas much as we were successful in having the county schools institute a course in soil protection. We also work with the Farm Bureau in its main pro grams and give special attention to purebred livestock annual sales and to meetings of cattle feeders. “ In the last analysis we try to sell our customers to the end that they will recommend us to their friends and that policy has paid off handsomely in our growth as it is our policy to (Turn to page 32, please) Banker Heads C. of C. Here 'Ä f<V W -X jX v A. C. Armstrong, Northwest ern State bank president, yes terday was elected president of the Duluth Chamber o f Com merce fo r a one-year term, it was announced last night by Robert B. Morris, executive sec retary. f Mr. Armstrong, w ho served on the board of directors for the last year, succeeds Harry C. Applequist. Mr. Applequist becom es an ex-officio member o f the board. Re-elected C o f C directors for two years w ere S. F. Atk*-, Gray, B. A . McTt R. M oore. N ew b , r -r A C 6 » ■ are A rthur CK se°' s \ y SCA «s®, S* °£& Z° Business Students View Bank Operations % X ? ** Ninth grade Backus school stu dents taking the junior business course received practical lessons in banking at the First National bank. They were escorted through the hank in small groups in order to observe closely the various opera tions. John Veranth and Edward Ness, instructors, arranged the tours. VSV®VO ® . «®®,t, , GOOD PUBLIC R ELA TIO N S — Samples of current news stories showing the wide variety of approaches to legitimate news stories that are a part o f a bank’s public relations program. N o rthw e ste rn Banker, Novem ber, 1949 18 W hat M SairHeard in Fra nee and ita ly South Dakota Banker Describes His European Trip By HARMON KOPPERUD President Community State Bank Lake Preston, South Dakota H ARM ON KOPPERU D Reports on European trip RED PHILLIPPI of Milbank, past president of the South Dakota Bankers Association and at the present time a member of the execu tive committee of the American Bank ers Association, and the writer were .two out of approximately a half a million tourists that visited Europe this past summer. We were a part of a group of twenty-four that left Minneapolis on a conducted tour and visited nine European countries. We landed at the port of Cherbourg, France, which is near where the in vasion took place and, of course, is where we saw the first war damage. France has been making some prog ress towards her goal of being selfsufficient, but most of the improve ments in the French economy have come in departments in which Mar shall Plan aid has been effective. We saw very few tractors and very little mechanized machinery. O n e could, of course, understand the rea son for this, because the farms are too small and the people cannot af ford to buy this kind of equipment and pay a very high price for gas. I noticed that the trees were abundant everywhere in France and that some trees exist on every acre of land. Most of the farm labor i^ by hand, with oxen for power, and most of the harvesting is done by hand. When the farmer wants to go to town he goes with one or two oxen hitched to a two-wheel cart for transportation. It seems to the writer that the best farm equipment French farmers have is their wives and children. F Paris Paris, to me, is not France, because it is so different from the rural coun tryside that one just has to visit Paris in order to appreciate the difference. Paris night life, with its variety of N o rthw e ste rn Banker, November, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis talented, dressed, or mostly undressed ladies, and the forced necessity of drinking wine or champagne in order to sip for an hour or two to delight the eye at the expense of the stomach, was more than my poor tired tummy could absorb. We did not see very many homes like we have in the United States. It seemed to us that the vast majority of the people live in apartment houses that are usually three to five stories high. I was surprised and disap pointed to hear that France trades with all nations behind the Iron Cur tain in spite of our Marshall Plan aid, while we were told that England trades with none of the nations behind the Iron Curtain. Italy In leaving France and crossing the border into Italy, I was convinced that the U. S. Air Force certainly knew its boundary lines, for the devasta tion begins immediately upon crossing the border into Italy, and I thought that the most heavily bombed port in Italy was Spezia. We spent a day and an evening at Genoa, city of a million people and one of the older cities, where we saw thousands of people working at ship building yards and dry docks. It sort of reminded one of Philadelphia. Genoa, by the way, is the birth place of Christopher Columbus and for that reason was of interest to all of us on the tour. When we got into Italy we were im pressed by the fact that nearly all of the bathrooms in the good hotels had marble walls and floors and this was due to the fact that marble, of course, is very plentiful in Italy. Next, we went to Rome, a city twen ty-seven centuries old, and the home of such famous persons as Michel angelo and Julius Caesar, as well as the Vatican. Although the war damage is exten sive in some spots in Italy, we were surprised to learn that only 6 per cent of her valuable inherited treasures were lost during the war. Rome One of the interesting highlights in Rome was the private interview ar ranged for me by Senator Mundt with United States Ambassador J a m e s Dunn. He told us that one-third of the country’s population is commu nist and they are as strong as the Kremlin wants them to be, but due to the Marshall Plan this rate has been reduced considerably during the last year. Ambassador Dunn told us the stand ard of living of Italy is low and that the average farm family has an income of $287 American dollars. No com parison to that of the United States farmer who has an average income of $3,200. He also told us that many cities in south Italy with a population of over 10,000 people do not have one foot of sewer or water pipes, so that means the standard of living is worse than the average American citizen could believe or even comprehend. You very seldom see a car in rural Italy or in the small towns. The rea son for this is that a car like our small est cars, similar to the Crosley, costs over a million lire and a new car about the size of the old Model T, would cost in the neighborhood of two million lire. There are very few tractors to be found on the farms in Italy except in the Po Valley of north Italy. I inquired from Ambassador Dunn as to the feeling towards the United States and he told me it was splendid. Ev erywhere we went we were treated with the highest degree of courtesy and friendliness. A < Marshall Plan The Marshall Plan for agriculture has set up many new projects, many of which I consider very effective, and they could be enumerated as fol lows: They have just started sixty new irrigation and reclamation projects, with 2,000,000 acres involved in south Italy, for the reason that in this part of south Italy there are practically no roads, no water supply, no electric ity and no farm equipment and, in (Turn to page 30, please) V 19 Cinuneinl P ublie Convention H its OHN N. GARVER, vice president, the Manufacturers and Traders Trust Company, Buffalo, w a s named president of the Financial Pub lic Relations Association at the annual meeting of t h i s organization last month at the Edgewater Beach Hotel in Chicago. He succeeds Allen Craw ford of Detroit, who has served the past year so admirably. Other officers moved up are: First vice president, Phillip K. Barker, Gran ite Trust Company, Quincy, Massa chusetts; second vice president, Hugh J. Bernard, Second National Bank, Houston, Texas; third vice president, S. H. Chelsted, Pittsburgh. Harve H. Page, second vice president, the North ern Trust Company, Chicago, was re named treasurer. Executive Vice Pres ident Preston E. Reed and Miss Lucy David, secretary, continue by board appointment. Attendance at the convention was the largest in history and some of the outstanding speakers and their com ments are as follows: C. A. HEMMINGER, assistant cash ier, American National Bank and Trust Company, Chicago: “A familiar truth—and one that banks, like other advertisers, sometimes overlook — is that our best prospects are, after all, our present customers. “Advertising research reveals that people are far more likely to read advertising messages about products they use and stores and institutions they patronize than about products they do not use and institutions they do not patronize. “Therefore, you have a better-thanaverage chance to get your story across effectively when the recipient is already a customer. “Another good reason for planned, consistent mailings to present custom ers is that such mailings help make ‘character’ for your bank, and often bring the customer real news about your activities. Any shift in hours, any alterations to your banking quar ters, any addition to your facilities, or any other major change that affects your service is news, and the customer is entitled to have it straight from the horse’s mouth. “Direct by mail advertising can also be a vital factor in keeping business on your books. “This is especially true in the main tenance of savings volume. When Mr. Average embarks on a savings pro J https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis gram, he is full of ambition, hope and high resolve. All too frequently his enthusiasm weakens when he is con fronted with the monthly household bills and beset by temptations to spend for short term pleasures. In many cases he can be kept on the beam by the judicious use of letters—good will letters, anniversary letters, save-by mail letters—and other literature de signed to resell the thrift idea.” FRANK R. WARDEN, vice presi dent, Central National Bank and Trust Company, Des Moines. “ It has been charged repeatedly, and with some foundation, that bank advertising, as a whole, has been stiff and stilted. While public good will is an extremely important asset to a financial institu tion, as it is to any other business enterprise, it is possible to gain and hold public confidence and respect and, at the same time, be warm and friend ly. Radio, which employs the human voice, is an especially adept medium for presenting a sincere and friendly message right into the family circle. Radio copy that is written and deliv ered as though you were sitting across from the customer places the adver tising stress where it should be, on the human equation. “No particular type of program has been found that has proven to be es pecially preferable and effective for bank advertising. Banks use all types and kinds of programs, from presenta tion of symphonic groups, news and sports, through to the spot announce ment. “Radio advertising, to be successful, must have sound planning, astute time buying and careful thought to copy appeals. In these respects it does not differ from any other medium avail able.” DR. KENNETH McFARLAND, su perintendent of schools, Topeka, Kan sas: “Bruce Barton once made a great speech pointing out how Joseph grew to be the foremost figure in ancient Egypt, only to die and have Genesis report ‘there arose a new king in (Turn to page 29, please) TOP PHOTO — The F P R A annual convention in general assembly. BOTTOM PHOTO — One of the F PR A clinics in informal discussion. No rthw e ste rn Banker, November, J949 HOOVER D A M — Many New Dealers have “ Damned Hoover” but the Hoover Dam has paid real dividends in agri cultural productivity, by watering many arid acres. G AM B LIN G — The “ economy” of Las Vegas, Nevada, is based on gambling and slot machines of which over 500 are in the “ Golden Nugget.” News and Views OF THE BANKING WORLD By CLIFFORD DE PUY, Publisher HE following paragraphs were gathered “along the way to the A.B.A.” on a 3,000 mile motor trip to San Francisco. T * * * At Independence, M i s s o u r i , we stopped in front of 219 North Delaware to see where President Harry Spend thrift Truman stays when he is in this well known community. An old-timer told us that “this resi dence is the home of Harry’s motherin-law. He doesn’t have any real home, except the ‘north porch’ where he spends much of his time when he is here. Bess Wallace (no relation to Henry) is a very fine woman, and we all wondered how Harry ever won her in the first place.” In the back of the yard is a special building where the Secret Service men are constantly on duty so that they can be in readiness whenever the Pres ident “drops in.” * * * In Dynamic Dallas, with its popula tion of 500,000, you feel the energy and driving force which is making this city such a civic center. The greatest compliment we had paid to us was when a porter at the Hotel Adolphus said, “Boss, you alls one of deni big oil men, ain’t you, wid a lot of dem pumpin wells.” We thanked him for the compliment and said we were on the contributing end at most of the gas stations along the way. * * * Texas still has its famous road signs along the way which say, “If you drive, don’t drink, and if you drink, don’t drive.” * * * Sante Fe, New Mexico, has a popula tion of 25,000, an altitude of 7,000 feet Northwestern Banker, November , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and is the capital of the state, even though it has no railroads. The Santa Fe Railroad, built in 1880, never en tered the city because of engineering difficulties and they 'diverted their main line to Albuquerque—Santa Fe’s bitter rival. Santa Fe is the oldest con tinuously occupied seat of government in all the United States. The Palace of the Governors which is now a mu seum was started in 1610, or ten years before the Pilgrims landed at Plym outh. * * * Before you reach Hyde Park, Ari zona, there are numerous signs along the way which say, “Park your hide in Hyde Park.” Perhaps Eleanor would also like to use this slogan. * * * The Grand Canyon of Arizona is still “wide open” and fortunately we ar rived in the afternoon following a brief rain storm, so that half of the canyon was in sunshine, and the other half covered with a light mist through which, from the north to the south rim, there appeared the most beautiful rainbow we have ever seen. Don Lopez de Cardenas, a captain in Coronado’s expedition, discovered the canyon 409 years ago, in 1540. Scientists estimate that it has taken from 7 to 9 million years to cut the Grand Canyon which is the world’s most spectacular example of the power of erosion, a chasm 217 miles in length and 10 miles of average width, and a depth on the average of about one mile. * * * The Hoover Dam in Nevada is one of the greatest engineering feats of all time and bears the name of a great engineer. The dam is the highest in the world and rises 727 feet above bed rock. It NO M ISSIO N — The Mission Inn at Riverside, California, is not now nor never was a “ mission” for any re ligious organization, but it is a beau tiful hotel. is 650 feet thick at the base and the 45 foot crest forms a highway bridge from wall to wall of the gorge, being 1,180 feet in length and connecting transcontinental traffic between Kingman, Arizona, and Boulder City, Ne vada. After taking the elevators which go down 700 feet to the bottom of the dam where you can see the giant tur bines “in action” we then went to Boulder City 10 miles away to see the moving pictures made while the dam was being constructed. These movies are free to the public and present a very graphic and interesting portrayal of this wonderful structure. * * * Las Vegas, Nevada, is a city where “the slot machine reigns supreme” and these “one-armed bandits” are in ev ery drug store, grocery store and fill ing station, in addition to all of the gambling clubs, such as the Golden Nugget, where they have over 500. The law requires that these ma chines be “set” on a 60-40 basis, but many of the firms set them at 70-30 and some at 80-20, believing that if the public gets more jackpots the “volume of business” will be greater at the end of the month. The taxes on these ma chines—Federal, state and county—are a little over $400 per year per machine. Instead of voting for a Beauty Queen, when we were in Las Vegas they were voting on who would be the “King of Bartenders.” Coupons for voting purposes were available every where and on them it was printed “Don’t be Lazy—Vote for Your Fa vorite Personality behind the Bar. Winner of this contest will be King for three days, with all expenses paid for a three day trip.” In the Last Frontier Gay Nineties Bar there is one of the old-time “Or chestral Regina” machines, on the front of which it says, “This Music Box was formerly in a house of ill-fame and was operated by the famous Lulu White who was killed while playing its melodious melodies, by her lover, Blaekie Blackwell, gunman and stage coach robber. Hear the tunes played that caused the death of Lulu White; drop a dime in the slot on the opposite side of this machine.” We invested the dime to see what the “killing tune” would be, and lis tened to the soft music of “Sweet Alice Ben Bolt.” has transformed an incomparable cli mate and living conditions, second to nowhere on earth, from a preview of Paradise to an exposition of what might well he anticipated of purga tory.” * * * The Turnabout Theatre is just what * * * During a week-end at Palm Springs, California, we tried to find out what had made this place on the desert so popular. We believe that it was “most ly promotion,” although during a part of the winter season the climate is much warmer here than in Los Ange les and in other parts of the country. Every hotel and many private homes have their own swimming pools and these seem to be the main form of out door activity, in addition to golf and tennis. One man who comes to Palm Springs frequently told us that he has been caught in the terrific sand storms which blow down between the moun tains, and as a result of which his car had been completely “sand blasted” until there was no paint remaining. After you are on the highway and one of these storms hits, there is noth ing you can do except to keep on driving until it is over. * * * The Mission Inn, at Riverside, Cali fornia, is a hotel covering more than a city block and has 250 guest rooms and is certainly one of the most beau tiful hotels in America, but it was never a Mission nor did it have any connection with any religious organi zation. The manager told us that every day some one asks when and where reli gious services would be held. The hotel has been owned by the Miller family for 73 years and since 1880 has been under the management of Frank A. Miller, who purchased the hotel from his father. The mission effect is due to the fact that the build ings are patterned after the original Franciscan Mission building. * * * According to Don Thomas, managing director of the All Year Club of Los Angeles, “Tourists are spending over $400,000,000 a year with us, despite the smog and the heavy traffic. South ern California is still drawing an aver age of 3,000,000 visitors a year since the war ended and the good old Pacific Ocean, the palm trees, the flowers and the climate continue to get plenty of favorable comment.” * * * The smog is a real problem, never theless, in Los Angeles and a commit tee has been organized to fight this https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis menace. A subscriber in a letter to the Los Angeles Times said, “Smog its name implies, because it has two stages, one at each end of the theatre, and for the first half of the show, which consists of Puppet Musical Com edies, you face one stage, and for the second half of the show you turn your seats around and face the other stage, where you see some very intimate and Lively Revues, which are “take-offs” on current events. Harry Burnett, Foreman Brown and Richard Bradon of the University of Michigan, and later of Yale, operate the Turnabout Theatre and take an active part in each show. * * * Playing golf at the Riviera Country Club we saw for the first time in our experience, a green with a sand trap in the center. Fortunately we kept out of this trap, although we didn’t miss very many of the others. * * * While most banks are paying 1 per cent on savings accounts and Savings & Loan Associations are averaging about 2% per cent, one firm in Los Angeles, which is a “member of the Los Angeles Stock Exchange,” adver tises “A modern plan for savings. Yields over 5 per cent, based upon present price paid during the past five years in cross section of American In dustry. If you believe in American Free Enterprise System and have $50 or more and can save upwards of $25 every two months, you may partici pate in this modern savings plan. Save for Children’s Education—-Save for Old Age — Save for Independence! Act now and learn hoAv you may receive more than savings bank rate of inter est on your money.” This is just a sample of the compe tition which savings banks have to face in California.—The End. P A L M SPRINGS (to p )— With a popu lation o f only 7,213 this hot spot (it was 120 degrees last summer) in the desert caters to a Los Angeles and Eastern clien tele who can’t “ stand” the cold weather. Yes, it snowed in Los Angeles last winter. GOLD RUSH (center)— Just 100 years ago in 1849 the gold rush to the West was on, and many eager prospectors crossed the deserts in covered wagons, such as this one, with a barrel of water on the side. SA N T A FE (bottom )— The Art Gallery o f Santa Fe, New M exico, represents a tine example o f Spanish pueblo architec ture in this city o f no railroads, and no industries except necktie weaving. 22 i t a n l i p v s V o n IÁ n o n Ellsworth Mos€*r President, The United States National Bank Omaha, Nebraska “ Believes in two fundamental rules for banks” PLLS WORTH MOSER, president of *— Nebraska’s third largest bank, joined the United States National Bank of Omaha in 1928. After serv ing in various positions with the bank he was elected executive vice presi dent in 1938. In January, 1949, he was elected to the presidency. Mr. Moser was born in Oberlin, Kansas on August 1, 1895. He was educated at Central High School in Omaha and the University of Ne braska in Lincoln, where he played center on Nebraska’s great undefeated team of 1914-15. During World War I lie served as a first lieutenant in the 36th Infantry. Mr. Moser was mar ried to Carolyn Holmquist on De cember 24, 1921. After his return from service with the Army he was associated with the Omaha Grain Ex change and later with Moser-Larrick Grain Company in Oberlin, Kansas. From this latter affiliation he went N o rthw estern Banker, Novem ber, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis with the Continental and Commercial Bank in Chicago, then with the United States Trust Company and the United States National Bank of Omaha. Deposits of the bank at mid year were $64,522,000. In addition to bis bank duties, Mr. Moser is a director of the Chicago, Burlington and Quincy Railroad Company, the Omaha Printing Com pany and the Roundup Coal Mining Company. He is also a member of the Board of Governors of Ak-Sar-Ben in Omaha. He is a member of the Reserve City Bankers Association, is a member of the executive committee of the A.B.A.’s national bank division, is chairman of the finance and cor relating committee of the Omaha City-Wide Plan, and treasurer and executive committee member of the Omaha Taxpayers Association. Ellsworth Moser believes in two fundamental rules for the major por tion of the bank’s operation— first, keeping earnings and customer service up, and second, keeping expenses and losses down. Although lie has the faculty for continued attention and concentration on operations of the bank, Mr. Moser finds time for a few sports and recrea tion. Whether it’s duck hunting or good music and drama, he enjoys it. One of his favorite sports is fly-fishing in Wyoming, Montana or Canada and he is considered quite a good cook when it comes to preparing the meals. He is an average week-end golfer, claims whittling for a hobby and is voted by others as one of Omaha’s best dressed men. Mr. Moser is a member of Delta Tau Delta fraternity, is a Mason and a Shriner, belongs to the Omaha Country Club, the Omaha Club and the Omaha Athletic Club. 23 “ I ’ d Certainly Like to Meet You . . I I have kept the correspondent hank hooks for over 32 years. I know all of the accounts, yet I still don’t know all of the people. Whenever anyone conies in town and stops in to see our brand new Transit Department, I’m really pleased to meet the folks behind the accounts 1 have handled for so many years.’ w 7 , W E all are proud of our good record for quick, efficient handling of your transit business. As you have learned in the past, we route all collection and transit items DIRECT, whenever possible. And that has meant time and money saved for you.” I f you are not, at present, taking advantage of our HOLGER PETERSEN Transit Department DIRECT ROUTING, and our speedy transit facilities, we invite your inquiry. W e’d like to be P.s. W hy not drop in and see me the next time you ’re in town. I’d be more than happy to show your ‘best friend’ in Omaha.” you just how we handle your account on this end of the line. (H ß lq o A . (p sd siA A siyv MEMBER F E D E R A L D EPO SIT IN SU R A N C E C O R P O R A T IO N The Omaha National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FARNAM AT SEVENTEENTH N o rthw e ste rn Banker, November, 1949 24 LEGAL I tut F ederal Convictions He t s e d . 1ffainsi State Hank R o b b er? Q. Suppose that a bandit robbed a state bank in a state that has a habit ual criminal law providing for more severe punishments in the case of previous convictions. Suppose further that the criminal had a previous con viction in the federal courts for violat ing a federal law. Would the federal conviction, as a general rule, be counted as a conviction in the state court proceedings for the bank rob bery in determining the punishment to be meted out under the habitual criminal statute? Yes. It is generally held that a con viction in a federal tribunal will sup port a conviction for the enhanced penalty under the habitual criminal laws of a state. Decisions so holding may be found in Illinois, Missouri, Oklahoma and Texas. The same is true regarding convictions in sister states in most jurisdictions, Georgia being about the only one, if not the only one, in which sister state convic tions are not counted in these matters. Q. Sequatchie worked for a con struction company and was paid a salary of so much per month plus a percentage of the profits. On such basis he was paid $15,000 in 1942 and he, in turn, duly paid his federal in come tax on that amount. In 1944 it was discovered that a mistake had been made in computing the 1942 profits and that he had been overpaid $5,000. On December 30, 1944 this was charged against his account with the company and he paid it back from time to time, satisfying the account in full in about eighteen months. He sought to file an amended 1942 tax re turn and secure a refund on the theory that his 1942 income should have in cluded only the $10,000 total actually his. Should he prevail? No. The full amount of the money, namely $15,000, paid to Sequatchie in 1942 was received under a claim of right and was taxable in its entirety in the year in which it was received. He could not re-figure his 1942 return and set it up on the basis that his in come was only $10,000 during that year. He could, however, claim deducN o rthw estern Banker, November, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This and Other Timely Legal Questions Are Answered by the LEGAL DEPARTMENT of the NORTHWESTERN BANKER tions for the amount he was required to repay, namely $5,000, in the years in which his repayments were made. The U. S. Circuit Court of Appeals, Sixth Circuit, has so held in a recent decision involving similar facts, citing a previous decision by the U. S. Su preme Court as controlling. Q. A channel was cut across a bend in an old river course in Missouri. Floods occurred and the banks of the channel eroded, bringing to light an ancient Indian canoe some thirty feet long made of a hollo wed-out, single walnut log and in a good state of preservation. The original owners might well have been the mighty Osages who used the area for their hunting grounds. It was discovered by Buckley while swimming to refresh himself and he sought to remove it and sell it to a museum. The land was owned by Kline, a banker, who wanted it for himself. Was Kline en titled to it? Yes. Buckley was not entitled to the canoe on the theory that it was “lost property” and therefore “finders are keepers.” While the original own ers of the canoe were long since dead and it was inconceivable that their title could be established, Kline was entitled not only to the surface of the land but also to everything within the soil to the center of the earth and this included the ship that was imbedded therein. In Iowa this doctrine has been similarly applied in the case of an “aerolite” which was found on cer tain land there. Q. A banker owned a dwelling house in a resort community that he rented for a six months season to an individ ual for $2,000. Subsequently the in dividual sought to contend that the property was subject to federal rent control, that the maximum rental should have been $100 per month or $600 for the six months, and that he was overcharged $1,400 and was en titled to treble damages. The property was in a rent control area but it was not clear whether it was subject to control because of its resort character istics. The banker had not willfully violated any rent regulation and had taken all practical precautions to pre vent any violation of them. Could the tenant recover treble damages? No. In cases involving claims by tenants against landlords for treble damages because of the violation of federal rent control regulations such damages will not be awarded where the violation is neither willful, nor the result of the landlord’s failure to take practicable precautions to pre vent its occurrence. The U. S. Circuit Court of Appeals for the Fifth Circuit, which Circuit includes the State of Florida, has had occasion to point this out in a recent decision and cite au thority for its holding. The legal principle involved would also be ap plicable generally throughout the country whether in resort areas such as Minnesota and Wisconsin or other wise. Q . Gordon bought a first mortgage bond from an Illinois state bank with which he had done considerable busi ness. Financial difficulties developed between them and a default occurred on the bond. Gordon sought to con tend the bank had agreed to repur chase it from him on demand and had refused to do so. Would an agreement in line with Gordon’s contentions have been binding on the bank? No. An agreement by an Illinois state bank to repurchase on demand a first mortgage bond sold by it to a customer is unenforceable against the bank. Such an agreement would be ultra vires and something the bank could not enter into in a fashion that would be binding on it. \ -i > < i X X < X 25 This Money https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis travels M ore than three-quarters o f ask their com m ission men a century’s experience has to route their money through taught us to appreciate the this Bank, the advice o f credit value o f speed in the trans goes to you on the day o f mission o f proceeds receipt. from The Stock Yards the sale o f live stock in Chi p o st o ffice is just across cago. W hen your customers the street and no time is lost. We will be pleased to send you in struction cards to give your shippers. S jf e LIVE STOCK BANK fo/rca /jo UNION STOCK YARDS ESTABLISHED 18 6 8 M em ber Federal Deposit Insurance Corporation 26 Joins Bank Staff On November 15th, Jerald R. Jones, formerly cashier of the Andover State Bank, Andover, Kansas, will join City National’s (Kansas City) correspond ent bank staff, to serve in Kansas as a special representative. Mr. Jones has had service with the CLIENTS’ FUTURE? To improve the reading efficiency of microfilm records, which are photo graphed at high ratios of reductions on both sides of 16 mm. film, Recordak Corporation, 350 Madison Avenue, New York 17, New York, subsidiary of Eastman Kodak Company, an- ^ ,d H ile ic € lK BORDER American business men are finding that Canada offers them vast opportunities for expansion. Here are the figures: $2 V i b illio n a n n u a l e x p o r t s ........... $3 b illio n w a g e s & s a la rie s . . . . $7 b illio n •< Film Reader . . . JU ST A C R O S S THE a n n u a l i m p o r t s ........... elected an assistant secretary in the correspondent banking division and William R. Tupper an assistant secre tary in the business development de partment. Mr. Spiesbaeh has been a corre spondent banking representative of the trust company since 1947, cover ing Missouri and Illinois. He origi nally joined Mississippi Valley in 1926. Mr. Tupper has been a representa tive in the business development de partment of the company since 1946. -T < gross n a tio n a l product $ 1 5 b illio n And Canada has immense resources yet to be developed— in raw materials and abundant, economical power. Since 1817, the Bank of Montreal has been helping Canada grow . . . has grown with her. W e stand ready to answer any specific questions you or your clients may want to ask, so talk Canada with us. W e ll be pleased if you will call on us through our offices in New York, Chicago or San Francisco, or through our Foreign De partment in Montreal. * * * Fourth National Bank in Wichita, and is a former president of the Butler County, Kansas, Bankers Association. Mr. Jones has been active in the Wich ita Chapter of the A.I.B. and this year was secretary of Group Seven of the Kansas Bankers Association. SEND FOR YOUR FREE COPY As a starter, this 100-page, fact-filled booklet C A N A D A T O D A Y , will an swer a great many o f your q u e stio n s a b o u t C an ad a’s people, her industries and her resources. Write today for Booklet C-54 to any o f our U.S. offices,or to ourForeign Department in Montreal. B a n k of M ontreal C a n a da ’s First ‘B a n k InCanadasincei8iy.. . InU.S.sincei8jç u. s. NEW Y O R K .....................64 Wall St. CH ICA G O .............27 S. La Salle St. SAN FRANCISCO - 333 California St. HEAD OFFICE MONTREAL LO N D O N 47 Threadneedle St., E. C. 2 9 Waterloo Place, S. W. 1 Mid-Continent Trust Conference Trust men from nineteen midwestern states will hear addresses by na tional leaders in business and finance at the 18th Mid-Continent Trust Con ference in Chicago, Illinois, December 1st and 2nd, it was announced by John W. Remington, newly elected presi dent of the Trust Division of the Amer ican Bankers Association. Mr. Rem ington is vice president and trust offi cer of the Lincoln Rochester Trust Company, Rochester, New York. The Conference, which will meet in the Drake Hotel, is being sponsored by the Trust Division with the Corporate Fiduciaries Association of Chicago act ing as official host. Two New Officers R E SO U R C E S OVER $ 2 BILLIO N N o r t h w e s t e r n B a n k e r , N o v e m b e r , 7949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis X JERALD R. JONES W ith City National, Kansas City At a recent meeting of the board of directors, two new officers of the Mis sissippi Valley Trust Company were elected. Edward E. Spiesbaeh was A New Recordak Film Reader, with greater magnification, is designed for easier reference to microfilm records which have been photo graphed at reduction ratios of 28 to 1 and 35 to 1 on both sides of 16mm. film. nounces a new reader unit with great er magnification which brings these smaller images back to clearly read able size. Similar in design to current “tabletop” 16 mm. readers in the Recordak line of microfilming equipment, the new reader is designed especially for banks, retail stores and business offices now using either the duplex or duo method of microfilming. At reduction ratios of 35 to 1 and 28 to 1, the 16 mm. film is exposed first along the left-hand edge and then along the right-hand portion, so that the capacity of a 100-foot roll of film is more than doubled. V < r With Kansas City Bank Graham Porter, assistant cashier of the First National Bank of St. Joseph, Missouri, of which his father, G. E. X https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis From 1889 to 1899 276 Banks... . . . became Central Hanover correspondents and are still Central Hanover correspondents. A total o f 424 banks have maintained a banking relationship with Central Hanover for fifty years or more. A bank is known by the correspondents it keeps. CENTRAL HANOVER B A N K A N D TRUST COMPANY N EW Y O R K Member Federal Deposit Insurance Corporation N o rthw e ste rn Banker. November. 1949 28 Porter, is president, has been elected assistant vice president of Traders Na tional Bank, Kansas City. He is a general officer and associated also with correspondent bank activities. Mr. Porter is a Navy veteran of the last war. With St. Louis Bank --¿a The board of directors of the First National Bank in St. Louis have an nounced the election of James P. Hickok as an executive vice president and a director. Mr. Hickok, president UK ^ cß v- FASTESTTOSMIFSMIA M m§ D M T he MODERN direct routing service of Bank of America in California today is a far cry from the pony express of nearly 100 years ago. One account with Bank of America, either in Los Angeles or San Francisco, affords you direct, prompt handling of col lection items in any of the more than 300 California communities where this bank has branches. Direct your inquiries to Bank of America, 300 Montgomery Street, San Francisco 20; or 660 South Spring Street, Los Angeles 54. Foreign branches in London, Manila, Kobe, Tokyo, Yokohama, Shanghai. New York Rep resentative: 44 Wall Street. Correspondents throughout the world. ISmtkoCAmetrim NATIONAL J K SiTnags ASSOCIATION California’s Statewide Bank Bank of America Travelers Cheques are known the world over. Sell them to your customers, some of whom may be coming to California during this Gold Rush Centennial year. H an k of A inrrirn ctpyMEMBER FEDERAL DEPOSIT INSURANCE CD RPD RATI □ N No rthw e ste rn Banker, Novem ber, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • MEMBER FEDERAL RESERVE SYSTEM JAMES P. HICKOK Executive V ice President and Director of First National Bank, St. Louis of the Manufacturers Bank and Trust Company of St. Louis, will assume his duties with the First National Bank on January 2nd. William C. Connett, who is also an executive vice president of the First National Bank, will continue in that capacity. New Vice President Robert B. O’Brien, an assistant vice president of the Chemical Bank & Trust Company since 1947, has been appointed a vice president, according to announcement made by N. Baxter Jackson, chairman. Mr. O’Brien is well known in bank ing circles. Prior to joining the Chemical staff, he was associated with the Central Hanover Bank & Trust Company and represented that bank in New York, New Jersey, Pennsyl vania and Delaware territory. For some time he has been supervising the western business of Chemical Bank & Trust Company. 29 Jam es Muir Elected President Major changes in the executive branch of The Royal Bank of Canada have been announced. Sydney G. Dob son, president of the bank since 1946, was elected chairman of the board of directors. He was succeeded by James Muir, whose election as president was also announced. Mr. Muir had been general manager since 1945. T. H. • • DO CUSTOMERS OF YOUR BANK You cun h elp th em hg m u hi up o u r F o reig n D e p o r tm e n t JAMES M U IR New President Royal Bank of Canada Atkinson was appointed general man ager. Mr. Dobson’s elevation to the chair manship of the board of directors fol lows some 49 years of continuous serv ice with The Royal Bank of Canada. Mr. Muir’s election as president marks the culmination of 38 years of service with The Royal Bank of Can ada. He is the third member of the Royal Bank staff to work his way up from a junior’s desk to the highest executive post in Canada’s largest bank. T. H. Atkinson, the new general manager, is a native of Newcastle, N. B., and joined the bank in 1911. FPRA CO NVENTIO N H ITS RECORD (Continued from page 19) Egypt which knew not Joseph.’ One day everyone knew Joseph; the next day no one knew him. This story led Barton to a very important conclusion concerning public relations: ‘a good product, a good institution, or a good idea must be sold all the time, for every day the king dies and there arise new kings which know not Joseph.’ “ The field day Tor the seller will soon be over. The public is putting the time-lock back on its pocketbooks.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Y O U R F oreig n D e p o r tm e n t OUMl SERVICES INCMÆUE: Collection Travelers * Cheeks of checks, drafts, coupons and other items payable in foreign countries for use at home and in fact throughout the world Reports item ittan ces to foreign points by draft, mail or cable on im p o r t , export and ex change regulations of foreign countries Advances Credit and Investment on checks, drafts, couponsand other items payable in foreign countries in fo r m a t io n fr o m r e lia b le sources Purchase and Sale • • • of foreign currency and coin Tetters of Credit for financing imports or domes tic shipments, and for use as travel funds Through our Foreign Depart m ent your services to c u s tomers can reach around the world. Continental Illin ois N ational Hank and Trust C om pany of Chicago CHICAGO 90, ILLINOIS M e m b e r F ederal D ep o sit In su r a n ce C o rpora tion N o rthw e ste rn Banker, November, 1949 30 y H o n s t » O r if a n W i n s A i r o n i SE VER AL COVERS of the Republic Rambler, house organ of the Republic National Bank of Dallas, Texas, and the Award of Excellence certificate which they won. HE Republic Rambler, house organ of the Republic National Bank of Dallas, was awarded a Certificate of Excellence at the annual convention of the Society of Associated Industrial Editors at Kansas City last month. This is the top classification in the general awards division in which near ly 400 industrial publications spread over most of the nation competed. Grading was based on four points: ac complishment of purpose, editorial and copy achievement, appearance achievement, and production achieve ment. The Republic Rambler started in December, 1943, as a clearing house of letters from Republic employes who were in the armed forces during the last world war. The first issue con tained six pages of mimeographed T N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis copy with an ink lettered head. In March of 1944 the magazine was first placed in the hands of a commercial printer and started carrying pictures. From that time on progressive steps have been made in layout, composition and subject matter. Today the maga zine is a twenty page house organ filled with stories about Republic per sonnel and bank services and carries an abundance of photographs. W H A T I SAW IN FRANCE AND IT ALy (Continued from page 18) time, this 2,000,000 acres will be un der production. Another project was to increase pro duction by the use of selected or cer tified seed and the Marshall Plan has helped to establish plots and experi ment stations so that they are mate rially increasing their yield per acre, due to the selection and production of certified seed. The Marshall Plan has helped re duce communism by about 15 per cent since the end of hostilities. In addition to the Marshall Plan, I think the greatest single influence against communism is the Roman Catholic Church. The Catholic Church has al ways been opposed to communism. We visited the Vatican, which is the smallest country in the world, be ing one-sixth of a square mile. It has a population of 450 to 460, which in cludes all the Cardinals. At present there are 58 Cardinals in the world. The Vatican has 1,100 rooms with the most beautiful paintings and art to be found anywhere and the only place where many of the original paintings of Michelangelo are to be found. One of the finest of these paint ings in the top of the dome in the Vatican took 10 years for Michelangelo to complete. We visited Milan, a large industrial city which has the world’s second largest church, which took 500 years to build. This church, of marble con struction, seats 40,000 people and has 15 pipe organs and is almost as beau tiful as St. Peters in Rome. Here in Milan we saw the original painting of the “Lord’s Supper,” in spite of the fact that three of the walls of the building containing the picture were blown down during the war. In conclusion I might say that de spite the memories of bombing and occupation forces, as well as wide spread influence of communism, the Italian people think very kindly of the United States.—The End. Elected Vice President The board of directors of The North ern Trust Company, Chicago, Illinois, has elected Don H. McLucas a vice president of the trust department, to assist in the general management and administration of the department. New Appointments The Bank of Montreal has recently announced the appointment of How ard P. O’Shea, in charge of business development, at the bank’s New York Agency, as superintendent of the busi ness development department at the bank’s head office in Montreal. He is succeeded by Joseph E. McCully. Thomas H. Bryson of the assistant general manager’s department, Toron to, is the newly appointed special rep resentative for the bank in Toronto, succeeding Mr. McCully. V 31 Third Conference The First National Bank of Chicago will sponsor its third two-day confer ence of bank correspondents on No vember 28 and 29, 1949. The discussions will cover the bond portfolio — governments and munici pals; public relations and savings— new business solicitation, calling pro grams, public relations, advertising, and savings banking; auditing, taxes, insurance, legal problems; and manag ing a country bank. The latter sub ject, one of the new topics in First National conferences, will be covered by a panel of country bankers who will speak on: (a) How I run a bank, (b) Problems of country bank man agement. (c) Consumer credit. During the discussions, led by a number of the bank’s officers and the country bankers, ample opportunity will be afforded for questions on the subjects covered. The meetings will make possible an exchange of expe riences helpful in the handling of day-to-day banking problems. The bankers will be guests of The First National Bank of Chicago for a luncheon, reception and dinner on November 28th and luncheon on No vember 29th. Large Hero Fund The citizens of Chicago are proving once again that their community heart is one of the kindest, most generous in the world. In response to the shock ing and untimely death of a 34-yearold Navy-veteran policeman less than two months ago, the public has poured $15,000 into a fund to help the police officer’s stricken family. As treasurer of the David Keating Hedo Fund (the name of the officer who was killed without warning by two youths he had stopped to ques tion), George A. Malcolm, president of the Drovers National and Drovers Trust and Savings Banks of Chicago, reports that when the original goal of $5,000 was met and surpassed, the goal was raised to $10,000. Contributions continued to roll in to help care for the widow and four children, ranging in age from six months to seven years, and Mr. Malcolm said the $15,000 mark would be topped easily. A.I.B. Executive Counci! The annual midwinter meeting of the Executive Council of the American Institute of Banking will be held at The Cloister, Sea Island, Georgia, Jan uary 23 to 26, 1950, it was announced by Hartwell F. Taylor, president of the Institute. Mr. Taylor is assistant vice president of The Bank of Vir ginia, Richmond, Virginia. The Executive Council is the gov https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Guaranty Trust Company of NewYork 140 Broadway Fifth Ave. at 44th St. Madison Ave. at 60th St. LONDON • P A R IS • Rockefeller Plaza at 50th St. BRU SSELS Condensed Statement of Condition, September 3 0, 1949 RESOURCES Cash on Hand, in Federal Reserve Bank, and Due from Banks and Bankers . $ 581,726,047.22 U. S. Government Obligations 1,102,405,250.90 Loans and Bills Purchased . 956,427,339.70 Public S e c u r i t ie s ........................ $ 68,482,159.51 Stock of Federal Reserve Bank . 9,000,000.00 Other Securities and Obligations . 7,214,957.10 Credits Granted on Acceptances . 8,428,729.88 Accrued Interest and Accounts Receivable.................................... 8,161,870.59 Real Estate Ronds and Mortgages 2,936,827.13 104,224,544.21 Bank P r e m is e s ................................................................... 5,043,563.00 36,012.78 Other Real E s t a t e ............................................................. Total R eso u rces..................................... $ 2,749JS62,757.81 LIABILITIES C a p i t a l ..........................................$ 100,000,000.00 Surplus F u n d .............................. 200,000,000.00 71,661,565.29 Undivided P r o f i t s ........................ Total Capital F u n d s ................................................. $ 371,661,565.29 D e p o s i t s ............................................$2,280,719,746.78 Treasurer’s Checks Outstanding . 34,532,851.79 Total D e p o s i t s ....................................................... 2,315,252,598.57 A cceptan ces.................................... $ 13,248,391.01 Less: Own Acceptances Held for I n v e s t m e n t ............................... 4,440,167.96 $ Dividend Payable October 1,1949 Items in Transit with Foreign B r a n c h e s .................................... Accounts Payable, Reserve for Expenses, Taxes, etc. . . . 8,808,223.05 3,000,000.00 389,188.09 50,751,182.81 62,948,593.95 $2,749,862,757.81 Total Liabilities Securities carried at $164,378,843.32 in the above Statement are pledged to qualify for fiduciary powers, to secure public moneys as required by law, and for other purposes. J. L U T H E R C L E V E L A N D Chairman o f the Board W IL L IA M L. K L E I T Z President DIRECTORS G E O R G E G. A L L E N D irector, BritishAm erican T o b a c co C om pany, Lim ited, and Chairman o f the Board, D uke Power Com pany W I L L I A M B. B E L L President, Am erican Cyanam id Com pany F. W . C H A R S K E Chairm an, E xecutive C om m ittee, Union Pacific Railroad Com pany J. L U T H E R C L E V E L A N D Chairm an o f the Board W. P A L E N C O N W A Y C H A R L E S P. C O O P E R President, Th e Presbyterian Hospital in the C ity o f New Y ork W I N T H R O P M . C R A N E , Jr. President, Crane & C o ., In c., D alton, Mass. STU ART M . CROCKER President, Th e Colum bia Gas System , Inc. JO H N W . D A V IS o f D avis Polk W ardwell Sunderland & K iendl CH ARLES E. D U N LA P President, B erw ind-W hite Coal M ining Com pany GANO DUNN President, Th e J. G . W hite Engineering Corporation W A L T E R S. F R A N K L I N President, Th e Pennsylvania Railroad Com pany L E W IS G A W T R Y JOHN A. H A R T F O R D Chairman o f the B oard , 1 he Great Atlantic & Pacific Tea Com pany C O R N E L IU S F. K E L L E Y Chairman o f the B oard Anaconda C opper M ining Com pany M O R R IS W . K E L L O G G Chairm an o f the Board, The M . W . K ellogg Company W IL L IA M L. K L E I T Z President C H A R L E S S. M U N S O N Chairman o f the B oard, Air Reduction C om pany, Inc. W IL L IA M C. P O T T E R G EO RG E E. RO O SEV ELT Retired o f R oosevelt & Son E U G E N E W. STETSO N Chairm an, E xecu tive Com m ittee, Illinois Central Railroad Company T H O M A S J. W A T S O N Chairman o f the Board, International Business M achines Corporation C H A R L E S E . W IL SO N President, General Electric Com pany RO BERT W. W OODRUFF Chairm an, Execu tive C om m ittee, T h e C oca-C ola Com pany Member Federal Deposit Insurance Corporation No rthw e ste rn Banker, November, 1949 32 erning body of the A.I.B., which is the educational section of the Ameri can Bankers Association. The Council consists of twelve members, represent ing various sections of the country, plus three elected national officers. HO W PUBLIC R ELA TIO N S AND ADVERTISING HELP (Continued from page 17) never solicit an account from our com petitors.” Oliver S. Aas, assistant vice presi dent, First National Bank of Minne apolis: “ In 1946 we sponsored our first ‘High School Honor Dinner’ hon oring the outstanding senior boy and girl of each of our high schools in Minneapolis. It has been very success ful each year and has caught the fancy of the students themselves, their par ents, and the school administration. “ We have two other things we are Elected Director Ellis H. Carson, recently elected president of National Surety Corpora tion and National Surety Marine In surance Corporation, has been elected a director of C.I.T. Financial Corpora tion. C.I.T. Corporation is the parent company of National Surety. Mr. Carson succeeds Vincent Cullen, who has resigned from the C.I.T. 8 knownh r a 8 s m .i n .41 doing at present. We are getting out a booklet in connection with employe indoctrination which we believe is quite unique. The title of the book is ‘The Customer Is Always Human.’ We are now working on a program for women which we believe will fill a definite need.” Richard H. Stebbins, Northwestern National Bank, Minneapolis: “ Pos sibly the most important, surely the biggest piece of promotion that we are doing or have done at the North western National Bank is the building of our roof sign, the tallest bank sign in the world. It is topped by a large spherical weatherball, the only illumi nated ‘weatherman’ in existence. Its different lighted colors signify various weather conditions. The sign is 157 feet high, the equivalent of a 12-story building, weighs 78 tons, extends 367 feet above the street level and is being anchored with six steel supports to the steel concrete columns two floors below the roof level so it will with stand gales of 140 miles per hour. The weatherball will be 31 feet in circum ference and visible for 15 miles. The letters ‘N W ’ will flash in neon lights with the word ‘Bank’ superimposed over them.” .° r "»¡mateknow). serviced. 2i-h sendin H a n k s H a ita r v i! u'ansit POints of any • • Givate wJl renters 11Usi / . °reign ‘ • Special 1 1 and Phonal Northwestern Banker, November , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis " gest list o f Jit IWW sm to ii. ban e cre()i ,e e in reports t eping ''e. Pai tni ent fnr Cafiori the ]y. Ur/oJ Fifteen banks that pioneered the use of Todd Protectograph checkwriters in 1900 are being honored, and are receiving new machines as gifts. The presentation is part of the 50th anniversary celebration of the Todd Company, Rochester, N. Y., manufacturers of protective bank equipment and supplies. George L. Todd, president, is shown with one of the original machines (le ft), and the new Protectograph Certifier, which each o f the 15 banks w ill re ceive. The original purchases were made at the American Bankers As sociation convention in Richmond, Va., 49 years ago. 33 INVESTMENTS W h y 99Cushion99 Honds Art* Hood fo r Y ou r P o rt folio This Select Category of Investment Bonds Receives Less Attention Than It Deserves By RAYMOND TRIGGER Investment Analyst New York City HERE is little or nothing on the horizon likely to prove disturbing to the money market. Over near months, the domestic economy will be subjected to mildly deflationary influ ences. Devaluation of many foreign currencies will increase imports of goods, generally at lower prices, thus sharpening competition with domestic products. At the same time, our ex ports will be automatically priced higher in the eyes of foreign buyers and, consequently, should shrink a lit tle. Lower tariffs on some 250 items com ing into this country will mean lower prices in the domestic market, some drop in the costs of fabricating goods made with foreign materials and, be cause of larger supplies from abroad, a slight drop in employment in this country. Of temporary significance, but like wise deflationary, are the coal and steel stoppages and their probable aft er-effects. Certainly, there will be no occasion to stiffen money rates, a de flationary step, in addition to the forces just enumerated. In fact, a slight further softening, with conse quent stimulus to the prices of topgrade bonds, may be seen over near months. T Plenty of Credit A look into 1950 suggests that there will be plenty of credit available to those who wish to borrow. The Treas ury deficit will operate to enlarge the supply of lendable funds, as will the distribution of nearly three billions of insurance refunds to veterans in the early months of the election year. As 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. and longer medium terms may be hard to market. This will create some mild difficulties b e t w e e n municipalities claiming high credit standing and the investment bankers whose job it is to buy and distribute those credits. It shouldn’t be a major problem, though, and even if the middle municipal ma turities tend to be sluggish, there should be no significant reaction in other sections of the high grade bond market. yet, however, there are no indications that anything resembling a business boom will develop by mid-1950. Thus, business and industry likely will not be seeking any considerable amounts of credit. Against this backdrop, it may be assumed that banks and insurance companies will be seeking ways to put their huge resources to work. The combination of forces expected to prevail between the present time and through the first half of 1950, at least, should produce a creeping bull market in Treasury obligations, par ticularly by the longer term issues. If so, the better-grade corporates will tag along. One of the often-cited advantages of municipals, of course, is protection from taxes. Higher taxation enhances this appeal. Conversely, reduced taxes would lower the value of exemption. There may be some juggling of rates by the Congress early next year, but major innovations seem highly im probable. Altogether, the effect of taxes on prices of municipal bonds likely will continue about as it is at present. On the supply side, there is some justifiable apprehension that the flood of new Housing Authority bonds will prove too much for the market. The billions to come over the years do appear enormous, but the test envis aged is apparently some way further in the future than was earlier sup posed. At present, the outlook is for some important refunding operations in early 1950 months, but a refunding neither adds to nor takes from the total supply. In short, a stable mu nicipal market for some months may be forecast with some assurance. So much for the high grade markets’ prospects over the next few months. The remainder of this letter will con- Municipals Tax-exempt Market The tax-exempt market has special problems. Banks will buy municipals running to around 13 years, but hesi tate to take on longer obligations. If priced attractively, insurance compa nies will absorb huge quantities of the longer-term issues. But, if 1-13 year bonds are fully priced and the longs are modestly priced, the medium D id you know that this com pany has specialized in Bank Insurance since 1919—that it has the inside view on Bank Insurance problem s? Consult us fre e ly at any time. F I R S T N A T IO N A L , B A N K B U IL D IN G https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Scarborough & Company C H IC A G O 3, IL L IN O IS Insurance Counselors STATS to Banks 2 4325 N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 34 Investments cern itself with a particular segment of that market. Investment Bonds A small, select category of invest ment bonds, usually utilities and sometimes industrials, receive less at tention in the financial press than it deserves. A good many commercial bankers charged with management of the investment portfolio are largely unfamiliar with them. One of the reasons may be that the investment bankers with whom the commercial banker deals consider the problem too difficult and avoid recommending “cushion” bonds. Actually, there is nothing mysteri ous about cushion bonds. Their num- SHORT TERM PAPER W e offer , subject to prior sale and usual option , the six-months notes o f the following makers in denom i nations o f $ 5 ,0 0 0 and multiples th ereof . Acceptance Corp. o f Florida Orlando Bankers Investment Company Hutchinson Com mercial Securities Co., Inc. Baton Rouge D oty Discount Corporation D etroit Interstate Finance Corporation Evansville Liberty Loan Corporation Chicago M anufacturers & Jobbers Finance Corp. Shelby, N . C. ber is limited, but they have a cer tain special function to perform and do it amazingly well. In essence, then, a cushion bond is a top-grade issue, callable, and selling above the call price. The significance of “cushion” is that these bonds are cushioned against a decline in the general level of bond prices. The reason for this special insurance feature stems from the fact that the bonds are callable and selling above the call price. At first blush, a callable bond selling above the call price is something to be quickly cleaned out of a portfolio be cause of the chance that it—currently at 108, say—will be abruptly called at 105. This concept often governs the decisions of investors who make a periodical check of the market’s rela tion to the call price of their holdings. Worth a Premium Investors who think the whole prob lem through, though, come up with a different conclusion. In the first place, the very fact that a given bond is selling above the call price can only be explained in one of two ways. One is that all the holders are blissfully unaware of the relationship of market and call price. Some may be, to be sure, but not all by any means. If it were the only thing to do under the circumstances, holders aware of the facts would pi’omptly sell and their sales would depress the market to the call price, or a small fraction above that price. Since, however, “cushion” bonds sell for months and years above the call price, it is evident that offer ings by apprehensive holders do not depress the market. The reason must be that others, though fully aware of the call feature, are willing to pay a premium above that level. That is the reason why callable bonds do sell above call price. There are a number of shrewd bond men and, although their number is not le gion, they deal in large blocks, who buy and hold “cushion” bonds at lev els above the call price. Their reason ing runs along these lines. The call imposes an artificial ceiling on the market price of a given, high-grade bond. A medium term 4 per cent is sue, not callable, might be selling at 115, whereas its counterpart, callable at 105, sells at 108. The direct return of the callable issue is larger, though it is postulated that the quality of the two is the same. There is reason, then, to buy the callable bond. The “cushion” is provided when necessary; that is, when the market slumps. If the non-callable issue drops 10 points to 105 by reason of general market conditions, the callable bond will drop only three points to 105, since the two are otherwise equal. T Provide Larger Return Thus we have shown that “cushion” bonds provide a larger return and are cushioned against the full impact of changing market conditions because they hadn’t risen as far as they other wise would have by reason of the drag on rising quotations created by the call feature. Against those two reasons for buying “cushions” at prices higher than the call price is the always existing chance that one will pay 108 today for a bond that will be called at 105 tomorrow. That is the offset, of course, but it isn’t as bad as just painted. f t -c M erchants Loan & Finance Com pany St. Louis N orthw estern A cceptance Co. INVESTM ENT SECURITIES Milwaukee O’ Dea Finance Company Des Moines Pekin Finance Company Pekin, Illin ois River Valley Finance Co. A Public Utility Davenport Southwestern Investment Co. A m arillo Industrial Thorp Finance Corporation Thorp, Wis. Railroad Universal Finance Corporation Omaha Municipal COMMERCIAL PAPER y COLLATERAL LOANS A .C . A L L Y N R .C . LON G & CO. Incorporated E S T A B L I S H E D 1924 100 W e s t 120 South LaSalle Street Chicago 3, Illinois Phone: Randolph 6-4370 and c o m p a n y N ew Y ork O m ah a M ilw a u k e e W a t e r lo o M o n ro e T~ S tre e t, Chieag-o B o s to n K an sas C ity M in n ea p o lis M o lin e l N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Investments 35 Market Behavior Finally, to underline the prime ad vantage of a cushion bond, the in vestor will consider the probable mar ket behavior of his investment should general market conditions drive the prices of all good bonds down. If all 4 per cent bonds, callable and noncallable, are destined to drop to a price of 105, he, having paid 108 for a callable issue, is better off than his conferee who paid 115 for a non-callable obligation. There are not a great many “cush ion” bonds because of the terms of the definition. Restated, they must be high grade and selling above the call price, but still well under the price of comparable non-callable is sues. When a callable bond is selling below the call price, there is no cush ion feature in the picture. If money rates rise, the price of these bonds will decline right in line with the fall ing quotations for non-callable issues. They are, however, ideal “defen sive” investments when one considers the general level of bond prices too high, perhaps due to the imposition of artificial “cheap” money conditions such as prevail at present in this country. The managers of the invest ment portfolios of the larger banks and large private investors are con sistent buyers of “cushions.” They, of course, are aware of the need to watch their holdings and pre sumably delegate the routine chores connected with the problem to a staff member. Portfolio managers of the medium-sized and smaller banks might reasonably expect active cooperation from the investment security houses with whom they deal. A prime consid eration when buying “cushions” is that the total so allotted be spread over as many different issues as possible. All the virtues of a cushion bond are to be found in each of them. By widely diversifying, the investor will greatly reduce the hazard of an unprofitable call. Altogether, it would seem that “cush ions” deserve the consideration of many more than the few sophisticates who presently hold them in such high regard.The End. St. Louis Conference William A. McDonnell, president of the First National Bank in St. Louis, has announced that the bank’s third annual one-day conference of its cor respondents will be held this year on Wednesday, November 16th at Hotel Jefferson. The tentative program has been pre pared and lists three guest speakers: Chester C. Davis, president of the Fed eral Reserve Bank of St. Louis; Dr. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ZFinanciny a way o f life A s a c i t i z e n o f t h e U n i t e d S t a t e s , y o u s h a r e in e n j o y m e n t o f t h e w o r l d s h ig h e s t liv in g sta n d a r d s. Y o u r a d v a n ta g e s in c lu d e p u b lic im p r o v e m e n t s a n d se r v ic e s b e y o n d c o m p a r i s o n w ith t h o s e o f a n y o t h e r c o u n t r y ...m a d e p o s s ib le in great m easu re by th e sa le o f s ta te and m u n ic ip a l b o n d s t h r o u g h th is n a t io n ’ s in v e s tm e n t b a n k in g s y s te m . S ta te a n d m u n ic i p a l b o n d s t o t a lin g c lo s e t o 5 u n d e r w r itte n in g r o u p s w h ic h th e p e r io d 1 9 1 0 -1 9 4 9 by Y2 b ill io n d o lla r s w e re H a ls e y , S tu a rt a lo n e , o r b y it h e a d e d s i n g l y o r w i t h o t h e r s . T h e s e b o n d s r e p r e s e n t e d o v e r 2 2 0 0 s e p a r a t e i s s u e s a n d o r i g i n a t e d in a ll o f t h e 4 8 s t a t e s . A tte n d a n t o n th is c o n t r ib u t io n t o th e n a t io n ’ s w e ll-b e in g h a s b e e n t h e s e r v i c e o f H a l s e y , S t u a r t in p r o v i d i n g a d v a n t a g e o u s o u t l e t s t o i n v e s t o r s f o r t h e i r s u r p l u s f u n d s . O u r l a t e s t m u n i c i p a l o f f e r i n g l i s t is a v a i l a b l e o n r e q u e st. ---------- REPRESENTATIVE MUNICIPAL BONDS----------State of C a lifo rn ia N a s h v ille , T e n n essee 214% V e te ra n s W e lfa r e B o n d s 2% S tr e e t, A l l e y & S e w e r B o n d s S a n ita ry D istrict of C h ic a g o , III. N e w Y o rk C ity , N e w Yo rk 214% C o n s tr u c tio n B o n d s 3 % V a r io u s P u r p o s e s B o n d s State of C o n n e cticu t State of North C a ro lin a V /s% U n i v e r s i t y B l d g . B o n d s 1 1 4% & V A% R o a d B o n d s C o u n c il B lu ffs, Io w a V A% S e w e r B o n d s S ch o o l D istrict of P h ila d e lp h ia , Penna. State R o a d s C o m m issio n of M a ry la n d Seattle, W ash in gto n 1 1 4% H i g h w a y R e v e n u e B o n d s 314% L ig h t & P o w e r R e v . B o n d s 2% B o n d s H A L S E Y , S T U A R T &, CO . I n c . 1J 3 S O U T H LA S AL L E S T R E E T , C H I C A G O 9 0 • 35 W A L L S T R E E T , N E W Y O R K 5 • A N D OT HER P R I N C I P A L CITI ES WHEEL0CK & CUMMINS, INC. IO W A AND GENERAL MARKET MUNICIPALS PUBLIC UTILITY, INDUSTRIAL, AND RAILROAD SECURITIES IOW A CORPORATE SECURITIES UNDERWRITERS DISTRIBUTORS Members Chicago Stock Exchange 200 Equitable Bldg. DES MOINES 9. IOWA 135 South LaSalle St. CHICAGO, ILLINOIS N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 36 Investments Y Marcus Nadler, widely known econo mist, and Gwilym A. Price, president of Westinghouse Electric Corporation. Two officers of the First National Bank also will appear on the program. Ray J. Miller, vice president and per sonnel director, will talk on “ Our Methods and Planning Division” and Robert D. Kerr, vice president, has chosen as his subject “ Some Observa tions on Consumer Credit.” Mr. Mc Donnell will preside at all sessions. Northrop Retires Louis H. Northrop, assistant vice president of the First National Bank of Chicago, retired recently, terminat ing twenty-four years’ service, during the last twelve years of which he has been in charge of the bank’s new busi ness department. Since 1944 he also has had supervision of the bank’s ad vertising. Mr. Northrop began his banking ca reer in the Union Trust Company and upon its consolidation with The First National Bank of Chicago in 1929, be came an assistant cashier in the bond department. Mr. Northrop plans to motor leisure ly through the west with his wife and daughter, Nancy, and will spend the winter in California in the vicinity of Santa Barbara. GO HAND IN HAND To be confident that every loan results in a profit is the aim of every bank. Loans secured by American Express Field Warehouse Receipts, covering inventory stored on the premises of manufacturers, processors, producers, dealers, or distributors, give sounder pros pect of profits by assuring that the underlying collateral will at all times be available. ADVANTAGES OF AMERICAN EXPRESS FIELD WAREHOUSING Security co ve rin g the b o rro w e rs’ invento ries. / Control of pro ce ed s of sa le s. i C lo se r su p e rv isio n of o p eratio n s. *\ Free co unsel to B a n k e rs co ncernng c o lla te ra liz in g invento ries. One trial of our Field Ware housing service will convince you why the name American Express has been for genera tions a byword for experi ence, responsibility, service, and performance. Women's Finance Forum The First National Bank of Minne apolis is sponsoring a six weeks long “Women’s Finance Forum,” designed to answer many of the questions wom en so frequently face today in regard to personal and family financing, in vestments and savings programs. The meetings began October 17th, are held every Monday (one session at 10 a. m., the other at 7:30 p. m., each lasting 90 minutes), and will conclude November 21st. The six pro grams were devised after detailed con ferences with groups of women care fully selected to represent a cross-sec tion of diverse occupations, interests and financial means. Their expressed interest in such a forum and the ex treme interest of qualified instructors on these topics was so great that First National decided to go ahead with the program immediately. When first announcement of regis tration for the forum was made, the quota of 350 women was filled within a week, and in another week an addi tional 250 also registered. In light of this, First National officials already have announced the forum will be held in 1950 with registration priority going to those women unable to get in the 350 quota for this year. Malcolm B. McDonald, vice presi dent and director of public relations, heads up the forum operation and is ably assisted by Oliver S. Aas, assist ant vice president. V b X f Elected Directors John Mosler and Martin S. Cole man have been elected directors of The Mosler Safe Company, it was an nounced by Edwin H. Mosler, •presi dent. John Mosler, who also has been appointed director of sales, is A ---------- MJÜH A /Ä B ) \ \to*R v»U cejjH C ypres * A m e r ic a n E x p r e s s | FIELD W AREHOUSING CORP. M ID-CO N TIN ENT DIVISION T . ST A N LE Y JACKSON, VICE PRESIDEN T 209 So. La Salle St., Chicago 4, 111. 131 So. Seventh St., Minneapolis 2, Minn. 1227 Washington Blvd., Detroit 26, Mich. 226 E. Mason St., Milwaukee 2, Wis. Other Offices: New York, Pittsburgh, Atlanta, Boston, Buffalo N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JOHN M O SLE R M. S. COLEMAN Elected directors of Mosler Safe Co. the fourth generation of the family in the business. He attended Exeter and Princeton University. Mr. Coleman, a graduate of the School of Accounting at New York University, is controller of the com pany. f r 4 37 IN S U R A N C E ff Off* t II SII 1*11II 1*0* P rotects Your Hank Select the Right Kind of Insurance Against Losses, and Buy Enough of It By WILLIAM J. SCHIFF Assistant Secretary Indemnity Insurance Company of North America IRECT financial loss concerns the banker more today than ever be fore. The loss of money and se curities through dishonesty of em ployes, acts of crime by outsiders and forgery or altercation of commercial paper and securities takes a promi nent place in the well-founded fears of every banker. There are two strong major influ ences governing this situation. One is to select the right kind of insurance against such losses and the second is to buy enough. How comforting it should be to know that in one package of insurance can be purchased complete protection against these exposures: dishonesty of employes, safety of property in the premises, safety of property in tran sit, forgery of commercial paper, and forgery of securities, which arise through the operation of the banking business excepting, of course, losses which occur through bad loans. This package is called a banker’s blanket bond. In an institution where so many persons in one way or another come in contact with money and securities, the need for comprehensive protection against dishonesty would need little defense even without the impressive list of loss amounts. Then, too, the velocity of turnover of the money lends itself to greater possibilities of embezzlement perhaps than in any other line of business. D Dishonesty Losses Dishonesty losses caused by em ployes are easily the number one W H E N the books don’t balance some evening, it is quite a shock to have your auditor tell you that your insurance coverage lacked sev eral thousand dollars of being enough to make up the loss. threat to bankers. At least 65 per cent of all loss of money and securities is caused by dishonesty of bank officers and employers. The blanket bond, as the name implies, covers all employes. Losses of this kind sometimes explode overnight, as was the case of the re cent dishonest New York banker, or may run a course of many, many years before detection. Provided the banker maintains his coverage con tinuously in force, the length of time during which the culprit operates will not defeat the insurance. The broad generic terms of money and securities are used in this discus sion to describe the property which is covered but a detailed cataloging of the items reveals a much broader Did you know 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 I R S T N A T IO N A L B A N K B U IL D IN G https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis scope of protection. All kinds of pre cious metals, jewelry, gems, valuable paper and any other documents of a nature similar to securities or other instruments more specifically defined in the contracts are protected. The exposures other than dishon esty are manifold while this property is on the actual premises of the bank. During banking hours there might be a hold-up with a consequent loss of the property. When the business office is closed and the money is in the safes and vaults, there is the possi bility of a burglary, remote, it is true, in a large bank with the very finest equipment, but not so fantastic in a smaller bank, of which there are so many in this country. Scarborough & Company C H IC A G O 3, IL L IN O IS Insurance Counselors STATE to Banks 2 4325 N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 38 Insurance Not all losses are occasioned by vio lence. A person might come on the banking premise and defraud the bank through a larcency or a theft of one kind or another. On the other hand, a banker might find that certain of his money or securities have mysteriously disappeared. Blanket bonds are writ ten to cover even this unforeseen oc currence. The coverage does not end there. A banker in the country often sends his surplus money and securities to his correspondent bank, Federal Reserve Bank and other places of safekeeping for various purposes. The blanket bond follows that property to those assorted places and gives protection while on those premises similar to that afforded at the main banking office. The coverage even goes so far as to give protection when there is damage or destruction to the premises, fur nishings, fixtures, vaults and safes, caused by a burglary, or robbery, or hold-up or attempt thereat, or through vandalism or malicious mischief. This type of damage can be substantial: for example, a vault door might be blown AGENCY COMPANIES IO W A M U T U A L IN S U R A N C E COM PANY SINCE 1900 IO W A M U T U A L C A S U A L T Y COM PANY open in the course of a burglary with a consequent damage to the vault door, and the mechanism in a vault door might represent a heavy item of ex pense. Protection of Securities The mention of securities offers this as a logical place to mention a form of coverage quite popular with the bank er. If a banker has a customers’ safe deposit box department, he is aware of the countless volumes of custom ers’ securities, and other property, resting in those boxes. The bankers blanket bond does not undertake to protect those securities unless the loss is caused by a dishon est employe and under circumstances making the banker liable. It is, there fore, highly desirable for the banker to consider the purchase of a safe de posit legal liability policy, which would protect him if he should be adjudged legally liable for the loss of customers’ property while in a rented box or outside the box but on the banker’s premise. When a banker dispatches covered property by means of a messenger or by an armored motor car company, again the blanket bond affords protec tion against loss through virtually any hazard which might occur. A little known feature is the protection run- [)e Witt, Iowa M U L T I P L E L I N E S MERCHANTS MUTUAL BONDING COMPANY Now Starting Our Second 20 Years As Strictly An Agency Co. Working With Selected Agents Since 1929 ALLIED M U T U A L Incorporated 1933 Home Office SAVINGS & LOAN BUILDING 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 and fifty bank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. CASUALTY COMPANY Harold S. Evans, President 4th and Park Streets Des Moines 9, Iowa E. H. WARNER Secretary and Manager W. W. WARNER Assistant Secretary N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 H A R V E S T GREETINGS At this season of the year when the fullness of nature's bounty is apparent before us on all sides, we pause to be thankful for the many blessings that are ours. W e are indeed grateful to our many fine agents who have made our year so successful. W e know your many clients are thankful for their many material possessions and are interested in pro tecting their property. W e know you are anxious to help them secure the best possible means of doing this. W e feel that our program of complete insurance pro tection — FIRE - WINDSTORM - AUTOMOBILE and PLATE GLASS coverages will be of great benefit to your clients. W e respectfully suggest that if you are not now acquainted with our agency contract that you drop a line to: W ESTERN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M UTUAL F IR E IN S U R A N C E CO. Des Moines 8, iowa ’■MUTUAL INSURANCE IS AMERICAN INSURANCE" N o r t h w e s t e r n Ba n k e r, N o v e m b e r , 1949 40 Insurance B a n k B a y s Scholarship FIRST P A Y M E N T from the $2,200 Carney Golden Fleece Scholarship is made to Dr. James L. Morrill, University of Minnesota president, by Russell L. Stotesbery, president of Marquette National Bank of Minne apolis. Eighteen-year-old Eugene Yahn won the scholarship award over a year ago in competition with other young people on the Carney Junior Carnival radio program, sponsored by the Carney Company of Mankato, manufacturers of cement and insulation. Mr. Yahn is enrolled in the University’s School o f Pharmacy this fall, and the funds, which are being held in trust for him by Marquette Bank, will be paid out for his educational expenses during the four-year course. Shown above, left to right, are: H. E. Carney, Jr., president of the Carney Company, Mr. Stotesbery, Mr. Yahn, and President Morrill. ning to the bank should the property be in transit by a messenger of a cor respondent bank. In other words, even though the property is entirely out of his control or jurisdiction, the banker may be assured that his blan ket bond is offering security against loss. Naturally, a liability for the loss may exist elsewhere but the insured can rest content regardless of that lia bility or the ability of the handler to respond. Property while in the mail or in the custody of the usual carriers for hire is not covered. It isn’t too often you hear of a loss by reason of forged securities. Not too much imagination, however, is needed to evaluate the possibilities. Just consider for a moment the huge batches of securities which are in the vaults as collateral for loans, which have been purchased for the invest ment portfolio, which have been guar anteed as to signature. Are they good? Have they been forged—or al tered? Are they counterfeit? Have they been stolen from or lost by the original owner? It is well to ask these questions, but is there an answer for each? The right answer may not be known until some time after the securities have been acquired. In the meantime, the clause under discussion removes any doubt as to where the banker shall stand if the securities are thus defec tive. This clause gives affirmative cov erage which is the only safe answer for the banker.—The End. C A N A D A ’ S O IL F IE L D S The Royal Bank of Canada can answer your customers’ questions about Western Canada’s fabulous oil develop ment whether they are interested in oil financing or wish sound advice on establishing business connections in Canada. Branches of the Royal Bank have been lo cated in Turner Valley, Leduc, Devon and Redwater oil fields since the earliest days. Address enquiries to E. B. Durham, Supervisor, The Royal Bank of Canada Calgary, Alberta C A N A D A ’S " O I L " B A N K 55 branches in A lb e rta, the p ro v in c e . O v e r 720 branches in C a n a d a , the W est Indies, C e n tra l and South A m e rica . New York, London and Paris. H e a d O ffice, Mon treal. THE ROYAL BAN K OF CANADA SPECIALIZING IN AUTOMOBILE FIRE WINDSTORM INSURANCE CENTRAL STATES MUTUAL INSURANCE ASSOCIATION Mt. Pleasant, Iowa E. A. H A Y E S Pre sid en t O. T. W ILS O N S e c r e ta ry Established in 1929 N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M in n e s o ta NEWS N. A. W ELLE President Bemidji Endorse Candidate S. J. Kryzsko, executive vice presi dent and trust officer of the Winona National and Savings Bank, Winona, Minnesota, has been proposed as a candidate for the office of vice presi dent of the Minnesota Bankers Asso ciation in the 1950 elections by the southeastern division of the Minnesota Bankers Association. The endorse ment of his candidacy has been sent to each division of the state associa tion. Mr. Kryzsko is well-known through out the state and has excellent quali fications for the position by training and experience. He has been with the Winona National for 24 years, after three years’ banking experience in Greenbush. He has been active in many types of bank activity, notably A.l.B. work, then held all positions in the southeastern division, serving as president of the latter in 1943-44. He has also been active in A.B.A. work. ROBERT E. PTE Secretary Minneapolis Change Bank Name The name of the First Security Na tional Bank of Willmar, Minnesota, has been changed to First National Bank of Willmar, it was announced by G. M. Grabow, executive vice presi dent. The change is in name only and is being made only for brevity and convenience, Mr. Grabow stated. Two New Directors E. C. Williams, manager of the W. E. Thomas Lumber Company, and At torney John R. Thomas have been named as the new directors of the Lake Crystal National Bank, Lake Crystal, Minnesota, according to an announcement made last month by Clayton Jones, cashier. Mr. Williams and Mr. Thomas fill the vacancies on the board left by the deaths of George Austin and W. E. Thomas. Announces Retirement The retirement of C. L. Skoglund, associated with the banking business in Red Wing, Minnesota, for the past 22 years, was announced recently by L. J. Kaliher, president of the First National Bank. Sell Bank Interest A deal was transacted recently whereby the Johnson family interests in the Geneva State Bank, Geneva, Minnsota, were transferred to a num ber of individuals in that community. The Johnson name has been associated with the institution since its origin. The late Luther W. Johnson was named cashier and managing officer at the founding of the institution on Oc tober 20, 1915. E m p lo y e s 9Im n eh room E n la rg ed 50th Anniversary The State Bank of Frost, Minnesota, became 50 years old last month. The State Bank and the town of Frost both were founded in 1899 and the progress of the town is reflected in the steady growth of the banking institution. De posits have advanced from a total of $50,000 in 1899 to over $792,000 at the present time, an amount four times the depression day totals in 1933. Officers of the State Bank are: T. H. Gullord, president; Clifford Kittlesen, executive vice president; John J. Nel son and Iver B. Satre, vice presidents; A. J. Brandsoy, cashier, and Palmer N. Eckhart, assistant cashier. Kanabec Annual Dinner Approximately 250 people attended the annual banquet of the Kanabec State Bank at Mora, Minnesota, for stockholders, employes and for direc tors, officers and operators of neighbor ing creameries. Many Twin Cities and other out-of-town bankers were guests. It was the 14th annual affair. President Frank Powers reviewed the bank’s annual report and an nounced that a new two-story building possibly would be erected or the pres ent building remodeled. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A F E W of the many employes and officers who dropped in on opening day to see the newly remodeled employes’ lunchroom at the First of St. Paul. The entire wall at the left o f the picture may be folded away to join the lunchery with the men’s clubroom. “THE First National Bank of St. Paul I last week opened an enlarged and completely remodeled employes’ lunch room and men’s and women’s clubrooms. The three rooms, occupying more than 6,300 square feet of floor space on the sixth floor, are separated by soundproof folding doors that make it possible to combine all three rooms into one for large meetings and other affairs requiring such space. The lunchroom alone occupies 2,700 square feet, the men’s clubroom 2,100, and the women’s clubroom 1,500 square feet. Both clubrooms are provided with adjacent quiet rooms for em ployes who become ill at work. The clubrooms are extensively used by employes during lunch hours for bridge, checkers and backgammon games, as well as reading and conver sation rooms. N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 42 Minnesota News Observe 60th Year The Citizens State Bank of Brainerd, Minnesota, recently observed the 60th anniversary of its incorporation in 1889. The bank was first known as the Northern Pacific Bank, but it received its present name in 1906. 60th Birthday The First National Bank of McIn tosh, Minnesota, has just rounded out 60 years of continuous service. The bank has just installed an addi tional nest of safety deposit boxes, where its customers and others may be able to keep their valuable papers in a fireproof vault. New Bank President The First National Bank of Good Thunder, Minnesota, announces the election of H. E. Glaeser as president, to succeed Richard L. Myers, Man kato, Minnesota. The announcement came simultane ously with the information that at mid-year Mr. Glaeser had purchased capital stock held until that time by the retiring president. Heads S. W. Group Kenneth E. Sheffield, vice president of the First National Bank in Marshall, Minnesota, was elected president of the Southwestern Minnesota Bankers Association at the annual meeting held recently at Valhalla. He succeeds A. R. Stillwell of Pipestone. Also named to office were L. V. Widmark of Ivanhoe, vice president, and R. L. Smith of Luverne, secretarytreasurer. New Clerk Added Dennis' Burreson has replaced Dale Hill in the Farmers & Merchants State Bank, Lamberton, Minnesota. Name County Officers Officers of the Brown County Bank ers Association in Minnesota for the coming year are Frank J. Schugel, State Bank, New Ulm, president; Ar thur Birkemeyer, State Bank, Springfield, vice president; E. H. Tams, Peo ples State Bank, Comfrey, secretarytreasurer; George H. Vetter, Farmers and Merchants State Bank, New Ulm, and Alfred Paulson, State Bank, Hanska, directors. Buys Canby Stock Howard Reiter of Howard Lake has purchased a block of stock in the Na tional Citizens Bank of Canby, Minne sota, and has assumed the position of executive vice president. Kenneth Kittelson remains as president of the bank and all other officers will con tinue with the institution. In an nouncing the sale of most of his stock, Mr. Kittelson states that he will retire from fulltime work at the bank on January 1, 1950. Observes 75 Years Livestock is the backbone of farm prosperity. W e spe cialize in livestock banking and are glad to consider your feeder overlines, either in their entirety or on a participation basis. Loan applications submitted to us will receive prompt, personal attention. You can improve the service to your live stock customers through an account with us. The Stock Yards National Bank South Saint Paul, Minn. M E M B E R F E D E R A L D E P O S IT IN SU RANCE C O R P O R A T IO N N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis One of the oldest banking institu tions in the state, the Goodhue County National Bank of Red Wing, Minne sota, observed recently the 75th anni versary of its founding. Started as a modest business by seven Red Wing men on September 30, 1874, the bank has grown and pros pered down through the past threequarters of a century and today it is considered one of the strongest in the Northwest. Remodel Wheaton Bank The interior of the State Bank of Wheaton, Minnesota, underwent a complete redecoration recently, as workmen completed the two-color job throughout the building. The lobby has been done over in light green and white, with other rooms finished in dark green, light blue and cream, yellow and green and yellow and grey. Arthur H. Lofstrom Arthur H. Loftsrom, 64, vice presi dent of the Annandale State Bank, Annandale, Minnesota, with which he had been associated 29 years, died recently. 43 This desk occupied by ten men https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ten men sit at this desk— ten men who are really one. This desk belongs to the country banker— the man who has to know answers to every part and phase o f banking. Across his desk com e questions that vary as the services o f his bank vary—a $5 a month savings depositor—or hail losses sustained by 50 clients; a neighbor looking for an installment loan—or a will in contest; chattel loans, crop loans, business loans, mortgages; civic drives, 4-H activities, church needs, every kind o f advice. The whole financial and civic picture o f his town focuses at his desk. There’s a man who has our respect! If there are times when you can use our specialized departments, if details o f a particularly knotty problem need quick attention when you re short o f time, if there is any service that any o f our men can render— call, write or visit us. Department of Banks and Bankers D . E . C R O U L E Y . V ic e P r e s i d e n t L . P . G I S V O L D , V ic e P r e s i d e n t F . W . C O N R A D , V ic e P r e s i d e n t A . F . J U N G E , A s s t . C a s h ie r K . M . B A R N E T T , A s s t . C a sh ier L. M . B R O O M , R ep r e s e n ta tiv e M arquette A v e n u e — Sixth to Seventh Streets M em b er Federal D eposit Insurance Corporation • A ffiliated w ith N orthw est Bancorporation N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 Twin City News HE Federal Reserve Bank of Min neapolis has scored another “first.” Its idea for telling through motion pictures how the banking system af fects the lives of the public has been adopted by the Federal Reserve Board. Officials of the board asked Oliver S. Powell, first vice president of the Minneapolis bank, to oversee the film’s T production. Mr. Powell had produced a motion picture of the operation of the Minneapolis bank several years ago. The story for the picture, a “talkie” on the “high school level” for national distribution, was written by Mr. Pow ell and Mariner Clarke of the bank. It is titled “The Federal Reserve Bank F irst H ennepin H unk R em o d eled MODERN STY LE S — Pictured above is the distinctively modern lobby in the new banking home of the First Hennepin State Bank, Minneapolis. Along one side o f the room are eleven tellers’ units, each flanked by screens o f clear glass set in decorative walnut posts. Opposite them is the spacious officers’ section, and at the rear is the main bank vaults. The bookkeeping department is at the back of the bank, and employes’ rest and lunch rooms are in the basement. Year’ round air conditioning is provided for the entire bank. All furniture and fixtures are in American Walnut, which harmonizes with the decorative theme featuring soft greens and a complimentary deep maroon. 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. N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minneapolis 4, Minnesota and You.” The cast includes profes sional players, as well as high school pupils. The First National Bank of Anoka, near Minneapolis, was selected as the scene for some of the shots. John N. Peyton, president of the Minneapolis bank, joined Mr. Powell in watching the filming, along with C. J. Hastings, president of the Anoka bank. The film is to be released in Novem ber. =1= ^ Ade Boy sen of the First National Bank of St. Paul has been elected president of the Twin Cities Financial Public Relations Association. He suc ceeds Gordon M. Malen of the First National Bank of Minneapolis. Rich ard H. Stebbins of the Northwestern National Bank of Minneapolis was elected secretary-treasurer. * * * Arnulf Ueland, president of the Mid land National Bank of Minneapolis, recently was re-elected treasurer of the University of Minnesota Alumni Association at a meeting of the asso ciation’s board of directors. He has held the post since 1940. John K. Fesler, president of the Lib erty State Bank of St. Paul and of the Lampert Lumber Company of St. Paul, was elected a trustee of the Greater University Fund. * * * Walton S. Given, a retired officer of the Northwest Bancorporation, was killed recently in an automobile acci dent near Minneapolis. Mr, Given had retired January 1st from the Bancor poration and since had been with the USO, of which he was Minnesota state director at the time of his death. * * * When John de Laittre, vice presi dent of the Farmers and Mechanics Savings Bank of Minneapolis, was elected chairman of the Hennepin county chapter of the American Red Cross, history repeated itself. Mr. de Laittre’s father, Karl de Laittre, was first chairman of the chapter from the date of its founding, July 28, 1915, until 1918. A Y V Minnesota News Goodrich Lowry, assistant vice pres ident of the Northwestern National Bank of Minneapolis, was elected treasurer of the chapter this year. * * =K When Northwestern National Bank of Minneapolis lighted its huge new “Weatherball” sign last month, a spec tacular turn-on ceremony told the mill city that the world’s largest bank sign was finally in operation. Searchlights, fireworks and a half hour radio broadcast from the roof of the bank building announced the mo ment when President Joseph F. Ringland threw the switch to light the 157 foot sign. Five hundred helium filled balloons released from the bank’s roof contain ing savings account certificates total ing $300 sent many people off on a search for a lucky balloon. As the sign was lighted, Minneapolis’ Aquatennial Queen Jean Johnson, cir cling overhead in an airplane, told radio listeners how the tallest and most brilliant electrical display west of Chicago looked from the air. Present on the bank’s roof were Min neapolis Weather Bureau Chief M. R. Hovde and A. F. Spilhaus, dean of the University of Minnesota’s Institute of Technology and nationally known me teorologist, who were especially inter ested in the “Weatherball” atop the sign, 367 feet above the street. =t= * * Oliver S. Powell, first vice president of the Federal Reserve Bank of Min neapolis, has been appointed to the editorial advisory board of “Greater Minneapolis,” a new monthly service magazine of the Minneapolis Chamber of Commerce. * * * Instead of making lawyers out of their sons, Minnesota bankers should send them to college to study agricul ture, Dr. O. R. Jesness, head of the division of agricultural economics at the University of Minnesota, told mem bers of the agricultural and conserva tion committees of the Minnesota Bankers Association recently in Min neapolis. In this way, Dr. Jesness said, bank ers could help expand their bank’s services to the farmer. Larger coun try banks should have contact men to work with farmers, either staff men or regular officers of the bank, he said. * * * Bernard B. Knopp of the First Na tional Bank of St. Paul has been elected chairman of the Minnesota group of the Investment Bankers As sociation of America, according to a recent announcement. Donald E. McFarland of Kalman & Company, Minneapolis, is vice presi dent and James M. Wallace, Jr., of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Merrill Lynch, Pierce, Fenner & Beane, St. Paul, secretary-treasurer. Members of the board of directors include William A. Dailey of Harold E. Wood & Company and Leonard A. Murray of Piper, Jaffray & Hopwood, St. Paul. *. *. *. Almost miraculous progress h a s been made in enacting recommenda tions of the Hoover Commission, di rectors of the Northwest Bancorporation and affiliated banks were told in Minneapolis recently by Frank P. Les lie, vice president of the John Leslie Company of Minneapolis. Mr. Leslie served as a deputy on the commission. J. Cameron Thomson, president of Banco, presided at the THE V / W 45 conference, which was attended by some 30 directors of the affiliated banks. * * * Thirteen employes of the First Na tional Bank of Minneapolis have been admitted to the bank’s Clipper Club in recognition of 25 or more years of service. They are Adale K. Anderson, Mabel C. Anderson, Robert M. Bell, Otto G. Cermak, Kenneth A. Frans, John B. Gozola, Clare Homme, Patricia E. Ketchum, Ernest R. Pankratz, Robert L. Peterson, Mamie E. Tamble, Ruth Wolff and Feme Wood. Membership in the club now totals 192. DI S C H A R R O W S DISC EVERY INCH EVEN ON TURNS .. . WITHOUT DIGGING IN! They Follow the Tractor! MM'S DISC HARROWS PENETRATE DEEPER, PROVIDE BETTER SEED BEDS. In loose soils . . . in ordinary soils . . . in soils difficult to penetrate, MM Disc Harrows uniformly break up clods, smooth out ridges, fill up holes without digging in—even on the turns. MM Disc Harrows provide wellworked uniform seed beds for proper planting, more uniform germination and ripening o f crops. Constructed for heavy-duty service, designed for strength without great bulk or weight, MM Disc Har rows last longer, perform better, handle easier, and operate more smoothly. They have extra width capac ity and better penetration because of proper disc spacing. Disc bearings are self-lubricating, never require oil or grease. Engineered design of gang assembly dis tributes load evenly over full length of each bearing, MM'S QUALITY DISC AND PEG TOOTH reduces bearing and assembly wear to minimum. HARROWS THOROUGHLY WORK THE Powerful tension springs regulate disc penetration GROUND. to even depth. Special coupling design permits up___ and-down flexibility to assure even penetration on rough ground. Wide-blade rigid scrapers of thin spring steel keep discs clean. Disc gangs can be set into working position by merely backing the tractor, and angle of work can be regulated "on the go" by pulling trip rope from tractor. With Uni-Matic Power, the desired working position can be hydraulically set by merely touch ing a conveniently located lever. Wide variety o f MM Disc Harrows provides types to do every harrow job faster with better results. MM deep pan weights are available to increase or decrease penetration for various conditions of soil. See your friendly MM dealer for complete facts. Minneapolis Moline Ï r r o g > i $ ÊBà S Mi il « e »p o l i s -M oli HE s M i MN E A P O L I S 1, MINNESOTA N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 46 Minnesota News Election of William C. Figge to the board of directors of the First State Bank of St. Paul was announced re cently by N. P. Delander, president. * * * Olof Norbeck, president of the Stock holm City Savings Bank of Stockholm, Sweden, was in Minneapolis recently to help the Farmers and Mechanics Savings Bank of Minneapolis celebrate its seventy-fifth anniversary. Accompanying Mr. Norbeck to Min neapolis was Carl Wilhelmsson, chief of staff at the Stockholm bank. Also speaking at the Minneapolis bank’s “birthday” dinner was John Sandstedt, New York, executive secretary of the National Association of Mutual Sav ings Banks. While in Minneapolis Mr. Norbeck was a guest at the home of Henry S. Kingman, Farmers and Mechanics president, and Mrs. Kingman. * * * A group of 12 vice presidents repre senting banks from Ohio, Pennsyl vania, Georgia, Massachusetts, Michi gan, Tennessee and Missouri met at Northwestern National Bank in Min neapolis last month for a discussion of consumer credit and installment bank ing. Host to the group, which has no title and is unofficial in nature, was Charles E. Harmon, vice president in charge of installment banking at the Northwestern National. * * * Henry Rutledge, assistant vice presi dent of the Northwestern National Bank of Minneapolis, is serving as chairman of the Minneapolis Chamber of Commerce education committee. The committee recently sponsored a recognition luncheon for members of the Minneapolis school board and school officials. * * * Rollin O. Bishop, former supervising examiner of the Ninth Federal District Insurance Corporation, recently as- V -1 Correspondent service at the Live Stock National Bank in Sioux City is the "One-Package” kind. It begins in your own community and con tinues either through the Sioux City stock yards or down-town Sioux City. JAMES L. SMITH Asst. Cashier and Auditor This bank can handle all your items, including your commercial transactions, with egual speed and accuracy. We invite your account here at the Live Stock National Bank. KINLEY W. SMITH Asst. Cashier STANLEY W. EVANS Asst. Cashier i fn e I JSiI TU I LPf lKx I National Bank \ L II V V Fl \ 4 SIOUX CITY MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION N o r t h w e s t e r n B a n k e r, N o v e m b e r , 7949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R O L LIN O. BISH OP New President American National Bank of St. Paul sumed new duties as president of the American National Bank of St. Paul. Mr. Bishop succeeds China R. Clarke, who resigned. Mr. Bishop has been vice president and director of the bank since June, 1948. Mr. Clarke has not announced his future plans. * * * Final approval has been given to revisions in the Northwest Bancorporation group pension plans affecting 3,600 employes, according to an an nouncement by J. Cameron Thomson, president, following a recent meeting of the Banco board of directors in Fargo, North Dakota. Mr. Thomson said the revisions pro vide for uniformity of benefits and employee costs and generally meet the standard of pension plans of leading business institutions. R. L. Federman, comptroller, re ported combined resources of the 70 affiliated banks aggregated $1,373,129,212 as of August 31st. Combined de posits were $1,285,045,647. * * * South Dakota's farming and busi ness still are riding the crest of pros perity, T. S. Harkison, president of the National Bank of South Dakota at (Turn to page 48, please) V X. r V T 47 sheeting, and when completed will pre sent a very fine appearance. Observes 60th Year South Dakota m :\ v s TOM S. HARKISON President Sioux Falls CARL E. BAHMEIER, JR. Secretary Huron .1 tten d a n ce A 1 it rou p A iectiuifs r OR the second consecutive year, the I total attendance at the fall group meetings of the South Dakota Bankers Association has set a new record. The business meetings were ad dressed by Abner J. Swanson of the Reconstruction Finance Corporation and E. R. Arneson of the Farm and Home Administration. During the business session, the association’s cur rent and future projects were pre sented. In addition, President T. S. Harkison presented an analysis of our current banking problems and possible future trends. The evening’s festivities, which in cluded a social hour and banquet, were concluded by the remarks of Colonel Harold G. Hoffman. Group Officers The following were elected to posi tions as group officers for the year 1949-50: Group I at Sioux Falls—President, C. W. Harrington, president, Dakota State Bank, Colman; vice president, L. J. Rasmussen, president, Security National Bank, Viborg, and secretarytreasurer, C. A. Lovre, vice president and branch manager, Northwest Secu rity National Bank, Brookings. Group II at Watertown—President, Earl Baertsch, cashier, Peoples Bank, Conde; vice president, L. L. Mann, vice president and cashier, Clark County National Bank, Clark, and secretarytreasurer, Walter K. Johnson, vice president and cashier, Farmers State Bank, Estelline. Group III at Mitchell—President, E. L. Steele, vice president, Farmers & Merchants Bank, Huron; vice presi dent, T. R. Brisbine, cashier, Sanborn County Bank, Woonsocket, and secre tary-treasurer, B. M. Kratzer, assistant branch manager, Northwest Security National Bank, Huron. Henry Reynolds, cashier, Farmers State Bank, Winner, and L. E. Weaver, president, First National Bank, Miller, were elected as members of the execu tive council for Group III. They will https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sixty years of community service under the same name without reor ganization or any major change is the record of the Pierre National Bank, Pierre, South Dakota, which held its diamond anniversary recently. Install Microfilm Camera ttw succeed B. R. Laird, Tyndall, and P. V. Olson, Chamberlain. Group IV at Mobridge — President, Clarence Knudson, cashier, Leola State Bank, Leola; vice president, R. G. Knodel, cashier, First State Bank, Mc Laughlin, and secretary-treasurer, S. H. Larsen, assistant vice president and assistant branch manager, First National Bank of Aberdeen, Mobridge. M. J. Schirber, cashier, Dewey Coun ty Bank, Timber Lake, was elected as a member of the executive council for Group IV, to succeed Max Gutz, Selby, who was a temporary appointment. Group V at Rapid City—President, Earl Keller, vice president, Rapid City National Bank, Rapid City; vice presi dent, George W. Milne, vice president and branch manager, First National Bank of the Black Hills, Sturgis, and secretary-treasurer, F. C. Barth, assist ant cashier, Rapid City National Bank, Rapid City. If it is possible, next year’s group meetings will be held just prior to the opening of the pheasant season. They will originate in the east, ending with Group V. New Addition Work was started recently on the new addition to the rear of the Bank of Union County in Elk Point, South Dakota. The building will be 22 feet wide and 22 feet long and a tile struc ture with cement block foundation. It will be entirely fireproof. Remodel Martin Bank Workmen began the work of remod eling the front of the Blackpipe Bank recently, which will constitute another improvement along Martin, South Da kota’s ever-improving main street. According to O. A. Hodson, presi dent, the present entrance will be done away with and entrance to the business office from the street will be at sidewalk level. The entire front will be finished in a type of aluminum The National Bank of South Dakota in Vermillion has a new microfilm camera for the purpose of photograph ing all transit (out-of-town) checks handled by the bank. The bank says that the new addi tion will save time in the internal operation of the bank and will keep a more complete record of the out-oftown items cleared through the bank. New Manager at Lead William J. Schoen of Lead, South Dakota, was elected manager of the Lead branch of the First National Bank of the Black Hills at a directors’ meeting recently. Mr. Schoen replaces John M. Ryan, senior vice president, who is being transferred to the Rapid City office. The new bank manager has been with the Lead unit sinse 1930 and has held numerous positions in the organiza tion, including that of vice president, for the past several years. Sponsors Broadcast The First National Bank of the Black Hills, through its president, R. E. Driscoll, Sr., Rapid City, South Da kota, and local managers, C. O. Gorder, Deadwood, and William Schoen, Lead, announced recently that the bank will sponsor a broadcast of the opening quotations on the New York Stock Exchange. Finish Remodeling Open house at the First National Bank, Rapid City, South Dakota, was held recently to display the complete ly remodeled interior of the building. Features of the remodeling include lowered ceilings, increased l o b b y space, fluorescent lighting, new floors and a harmonious six-color redecora tion. A pioneer scene in sand-blasted glass greets customers at the entrance. S i o u x F a i l s \<>u\s vice presi dent and assistant trust officer of the Northwest Security National Bank, was elected treasurer of the Sioux Falls Athenian Club. * * * Three Sioux Falls bankers attended the annual convention of the Ameri can Bankers Association in San Fran- A DOLPH LODMELL, N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1949 48 South Dakota News cisco. They were Tom Harkison, pres ident of the National Bank of South Dakota and president of the South Dakota Bankers Association; Ralph M. Watson, president of the Northwest Security National Bank, and T. N. Hayter, vice president of the First Na tional Bank & Trust Company. * * * C. A. Christopherson, chairman of the board of the Union Savings Bank and former U. S. Representative from South Dakota, has accepted state chair manship of the Sister Elizabeth Kenny foundation fund appeal now being con ducted. South Dakota’s quota towards the area goal has been set at $50,000, he announced. Dr. A. S. Donahoe, a director of the National Bank of South Dakota, ex hibited 12 head of Shorthorn cattle at the American Royal National Short horn show and sale in Kansas City in October. He also plans to exhibit some of his cattle at the International Stock Show at Chicago in December. * * * Local bank clearings for September were $21,676,873. In September, 1948, they amounted to $23,132,032. * * * Patty Anderson, a clerical employe of the First National Bank & Trust Company, was awarded a free trip to New York City by the Richard Hudnut salon there. She was chosen in a na STATEMENT OF CONDITION NORTHW EST SECURITY NATIO NAL BANK of S i o u x Fal l s, Sout h Dak ot a South Dakota's Leading Hank June 30, 1949 R E S O U R C E S Cash on Hand, in Federal Reserve Bank, and Due from Banks and B ankers.................................. $10,883,085.75 U. S. Governm ent O bligations................................... 17,823,428.76 State and Municipal B on d s......................................... 947,777.56 1,255,346.27 Other Bonds and Securities....................................... $30,909,638.34 Stock in Federal Reserve Bank in M inneapolis................................. 45,000.00 Overdrafts ..................................................................................................... 4,154.78 Loans and D iscou n ts................................................................................... 1 1 ,439^537.54 Com m odity Credit Corp., Corn L o a n s................................................ 1,501,605.35 Banking Houses ......................................................................................... 225,000.00 Includes Banking Houses at Sioux Falls, Brookings, Chamberlain, Dell Rapids, Gregory, Huron and Madison, all clear of encumbrance. Interest Earned but N ot C ollected........................................................ Customers’ Liability on Letters of C redit........................................... 174,941.92 33*949.50 T O T A L .................................................................................................... $44,333,827.43 L I A B I L I T I E S Capital Stock— C om m on ............................................. $ 500,000.00 Surplus .............................................................................. 1 ,000,000.00 Undivided Profits and General R eserves................. 467,988.61 Reserve for Interest, Taxes, and Other E xpen ses........................... Interest Collected but Not E arned............ ........................................... Deposits: Tim e .......................................................................... $ 7,390,569.52 Demand .................................................................... 34,059,827.85 U. S. W ar L o a n ...................................................... 680,013.32 Letters of C redit................................................... $ 1,967,988.61 125,832.68 75*645.95 $42,130,410.69 33,949.50 T O T A L .................................................................................................... $44,333,827.43 BRANCHES AT BROOKINGS, CHAMBERLAIN, DELL RAPIDS, GREGORY, HURON, MADISON A ffiliated with N orth w est B ancorporation M em b er F ed era l D e p o sit In su ra n ce C orporation N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tion-wicle competition in which en trants were judged on the basis of records gained in taking the salon’s DuBarry success course.—The End. TW IN CITY NEWS (Continued from page 46) Sioux Falls, told directors of the First Bank Stock Corporation in Minneap olis recently. He estimated South Dakota’s cash farm income for the first seven months of this year at $286,131,000, excluding government payments, compared with $333,182,000 for the same period in 1948. * * * Cecil A. Robertson, executive vice president of Drovers Exchange State Bank and manager of the Hartford Live Stock Insurance Company Agen cy in St. Paul, died last month follow ing a stroke. * * * E. O. Jenkins, president of the First Bank Stock Corporation, addressed members of the New York Society of Security Analysts in New York re cently. Also present at the meeting and participating in discussion follow ing the address were two First Bank Stock vice presidents, H. E. Atwood, president of the First National Bank of Minneapolis, and Julian B. Baird, president of the First National Bank of St. Paul. * * * Enrollment totals 513 in fall classes sponsored by the Minneapolis chapter, American Institute of Banking. * * * Robert Sandager, a member of the home loan department at the First National Bank of Minneapolis, was named to the 12-man team represent ing the United States in the interna tional rifle competition this month in Buenos Aires, Argentina. His father, Walter R. Sandager, is president of the Farmers State Bank of Lisbon, North Dakota. * * Guy W. LaLone of the First National Bank of Minneapolis has been elected a director of the Glenwood Hills Hos pital in Minneapolis. * * * Jack Irons of the Midland National Bank of Minneapolis headed a group of Minneapolis business men and army and navy officers who recently vis ited Rochester, Willmar, Marshall and Faribault, Minnesota, on a good will tour. Mr. Irons is chairman of the Minneapolis Chamber of Commerce aviation committee. Also in the party was Kenneth Lucas of the Midland bank.—The End. 49 \ o r f li D akota NEWS J. F. McENTEE President New England Remodeling Nears Completion Installation of Insulux glass blocks, the latest in indirect lighting, nears completion at the Bank of Steele, North Dakota. All old windows and the front entrance have been re moved. In their place have been in stalled the new glass blocks to give the structure that “modern” look. Themopane window lights will be set in aluminum ventilators in the middle of each glass block assembly. Plaster ing around the window frames and general redecorating of the interior re mains to be done. When completed, both the exterior and interior of the building will be attractive and wholly modern. Increase Capital The State Banking Board has ap proved an increase from $15,000 to $25,000 in the common stock of the Bank of Minto, North Dakota, State Examiner J. A. Graham announced recently. C. C. WATTAM Secretary Fargo F. A. Irish, chairman of the bank ers’ agricultural committee, received notice of the award from A. G. Brown, national director of the A.B.A. Takes Over as Cashier E. M. Dahlen of Fargo took over the duties of cashier of the Security Bank of Hebron, North Dakota, last month. Heads Southwest Bankers A. T. Zimmerman of Beulah was elected president of the southwest dis trict of the North Dakota Bankers Association at Bismarck last month. E. P. Daniels, New Leipzig, was elected vice president, and Herman Klaudt, Hazelton, secretary-treasurer. C. O. Thompson, Underwood, was named to the state association’s nom inating committee and T. W. Sette, Bismarck, to the state group’s execu tive committee. Joins Federal Reserve Robert Briere of Princeton, Minne sota, has accepted a position with the Federal Reserve Bank of Minneapolis. Mr. Briere had been employed at the Princeton State Bank for the past 18 months. Stage Surprise Party Employes of the Live Stock Na tional Bank of Chicago didn’t forget the first anniversary date of the open ing of their excellent lunch room in the bank building. To prove its popu larity with them, employes of the Live Stock National brought birthday cakes and special dishes for the noon lunch eon hour. Biggest surprise for President David Reimers was the staging of a special program by some of the more talented members of the staff to show their ap preciation for the fine lunch room fa cilities. " O p i'ii H o u s e " a t Hanh Celebrates 40th Year The Security State Bank of Wishek, North Dakota, recently celebrated 40 years of service to the community. Founded in 1909 by John J. Doyle, the bank has served continuously for 40 years and is the oldest bank in the county at the present time. The bank received its charter in September of 1909 and Mr. Doyle served as its president until his death in 1946. Since that time the bank has been operated by Mrs. Doyle and her sons. Cashiers who have served at the bank are F. N. Gillis, John Kuiper and Henry Kusler. Mr. Kusler retired in 1947 and moved to Spirit Lake, Idaho. Other personnel who served in the bank were Frank Koehler, Ben Bode and W. H. Dickson, who is in charge at the present time. Association Wins Award For the 18th consecutive year, the North Dakota Bankers Association has won a plaque put up by the Amer ican Bankers Association for service to farmers. In the judging, the work of the North Dakota bankers was rated at 1,000 per cent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PROGRESS — In 1890 when the Merchants National Bank and Trust Company opened for business at the corner of Broadway and N. P. Avenue, Fargo, North Dakota, was a frontier town of 5,000 people with board walks, and telephones were considered such a luxury that the bank was nine months old before it felt it could afford one. That’s a far cry from the present Merchants National Bank and Trust Company which recently held open house in celebration of the most ambitious modernization program in its 59-year history. Focal point of attention as soon as you enter the bank is the safe deposit vault at the rear (see picture above), standing with its huge polished door open. Nearly 2,000 boxes o f various sizes are housed here, practically double the old capacity. This is only one of the innumerable new features and remodeling projects in the bank. In the above photo also can be seen the newly remodeled tellers’ section. Officers o f the bank are Clarke Bassett, president; Frank R. Scott, chairman of the board; C. H. Olson, vice president; A. O. McLellan, vice president and trust officer; R. C. Harrington, cashier; E. W. Anderson and Wesley Pearson, assistant cashiers, and A . B. Fitzloff, manager consumer finance department. Members o f the board of directors are Messrs. Scott, Bassett, and Olson from the bank’s official staff, and George M. Black, Edwin G. Clapp, F. C. Gardner, R. D. Warner, R. F. Gunkleman, Thomas L. Powers and E. J. Schonberg. N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 50 F O R 9 3 Y E A R S S O U N D B A N K I N G S E R V I C E Complete Correspondent Facilities SAFEKEEPING—Our vault facilities are exceptional—they, together with experienced personnel, assure the complete protection, efficient handling and, equally important, the immediate availability of your securities. SPECIAL SERVICE DEPARTMENT—Orders for purchase or sale of securities are placed immediately by telephone to principal markets. Prompt attention given to all collections. CASH ITEMS— All services available are used to expedite the presentation of your items—frequent messenger service to Federal Reserve Bank and Post Office assures you of the fastest service in this area. CORRESPONDENT BANK DIVISION—Representatives of this division will be pleased to assist you whenever possible. COOPERATION— The most important service we offer you as a correspondent is our complete cooperation in fulfilling your every banking need. U N I T E D ¡S T A T E S jVaiional B A N K ojOmaha MEMBER FEDERAI DEPOSIT INSURANCE CORPORATION N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 Wm I f . I '/c i T f ' 11 K ankers in ill 1 9 4 9 -5 0 Earl Wilkins, Geneva, Is Elected Vice President; Conservation Foundation Selects an Executive Director EBRASKA bankers completed another very successful year at their 52nd annual convention in Lincoln last month, elected new of ficers and immediately launched into a continuing program of activity for the coming year. AV. H. Pierce, president of the First National Banks in Shelby and Osceola, was advanced to the presidency; Earl H. Wilkins, president of the Geneva State Bank was elected to succeed Mr. Pierce as vice president; Austin R. Vickery, vice president of the United States National Bank, Omaha, was re named treasurer, and Carl G. Swanson was reappointed secretary with offices in Omaha. N Executive Committee Newly elected members of the ex ecutive committee are: C. A. Jeffrey, vice president, Packers National, rep resenting Omaha; Carl D. Ganz, vice president and trust officer, National Bank of Commerce, representing Lin coln, and Charles Novak, president, Bank of Brainard, representing Group 2. Nebraska A.B.A. Vice President Glen T. Gibson, president, Exchange Bank, Gibbon, presided over the A.B.A. meeting of the convention. The fol lowing were elected: A.B.A. Nominat ing Committee Member for 1949—Ray R. Ridge, senior vice president, Omaha National Bank; Alternate Nominating Committee Member— Howard L. Bur dick, cashier, Central National Bank, Columbus; Vice President National Bank Division— W. Horton Munger, executive vice president, First Nation al Bank, North Platte; Vice President State Bank Division—Thomas J. Aron, president, Crete State Bank; Vice President Savings and Mortgage Divi sion—Paul Bogott, cashier, National Bank of Commerce, Lincoln; Vice President Trust Division — AAT. E. Spear, trust officer, First National. Omaha. J. O. Peck, president, Central Na tional, Columbus, proposed the name of AAT. Harold Brenton, president, Brenton State Bank, Dallas Center, Iowa, and several other Iowa country banks, as vice president of the A.B.A. for the 1950 election. Mr. Peck gave a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N E B R A S K A B A N K E R S reappointed Carl G. Swanson (left) as secretary of the Nebraska Bankers Association at the annual convention in Lincoln last month, elected W . H. Pierce (center), president of the First National Banks at Shelby and Osceola, as president, and elected Earl Wilkins (righ t), president, Geneva State Bank, the new vice president. forceful description of Mr. Brenton’s history and qualifications and these received hearty endorsement from a number of bankers at the meeting. The convention officially endorsed Mr. Brenton’s candidacy, which would lead to the presidency of the A.B.A., if elected, and instructed a committee to draw up a formal resolution on this matter. Soil Conservation Head The Association reaffirmed its posi tion of wholehearted support of the Nebraska Conservation Foundation, Inc. Sponsored originally by the As sociation and given immediate coop eration by leading businessmen and industrialists throughout the state, the Foundation has been in its infancy for several months. Its first step toward mature develop ment was taken at the convention and turned out to be a strong, sure-footed one. Vitally necessary to the success of the Foundation, whose purpose is coordination within the Cornhusker state of all available conservation and soil saving agencies, is intelligent, vigorous management. Officers and directors of the Foundation announced their unanimous selection of Fred L. O’Hair to be executive director. He is a noted conservationist and is presi dent of the Central National Bank at Greencastle, Indiana. Mr. O’Hair will assume full-time duties with the Foun dation as soon as possible. At the Foundation’s meeting during the convention, J. R. Kenner, presi dent of the Thayer County Bank at Hebron, and retiring president of the NBA, was elected president of the Foundation, succeeding \\T. J. Coad, president of Omar, Inc., Omaha, who has been serving as temporary presi dent since incorporation last summer. Mr. Coad also is a director of the Omaha National Bank. Other Foundation Officers Other Foundation officers are: A. J. Jorgenson, president, American Na tional Bank, Sidney, first vice presi dent; Mr. Coad, second vice president, and John F. Davis, vice president, First National Bank, Omaha, treas urer. Directors elected are: R. E. Camp bell, Lincoln; Walter R. Chace, Pilger; John B. Cook, Scottsbluff; D. C. Har vey, Wauneta; Willard D. Hosford, Omaha; Rolland Larmon, McCook; W. H. Munger, North Platte; S. D. Whiteman, Hastings. President’s Address In his president’s address, Mr. Ken ner asked Nebraska bankers to con tinue using good judgment and sound business sense to protect their busi ness equities. He called on bankers to bring the case for free private bankN o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 52 Nebraska News ing systems before the public and gov ernment. Mr. Kenner also announced that all but one bank in Nebraska be long to the Association. Harold V. Amberg, vice president and general counsel of the First Na tional Bank in Chicago, reviewed for the assembly some of the forces that have been prominent in this nation’s destiny. He said it was government necessity that led to many of the regu lations we have today. Mr. Amberg stated we still have fundamentally a statutory banking structure, but there are two matters among several that especially need attention immediately. They are the fiscal and monetary com mission studies and the Hoover Com mission task force report and recom mendations. Bromfieid Speaks Louis Bromfieid, noted author, con servationist and owner and operator of Malabar Farms in Lucas, Ohio, spoke on “The Soil As a Foundation -11 of Our Economy.” He told Nebraska bankers that a good farmer today must be part scientist, part specialist and part businessman. He then went on to state that only 10 per cent of the farmers today are good ones and they supply 50 per cent of the food; 30 per cent of the farmers supply the rest of the food and are pretty good farmers. The other 60 per cent, he maintained, produce little more than what they consume. He described in detail op erations of Malabar Farms from the time it was taken over as “worn out” land nine years ago, then said he thinks one of the things the matter with farm economy is that farmers are not keeping books properly. In showing the importance of farm ing to the economy, Mr. Bromfieid said that 18,000,000 people are engaged in farming and 132,000,000 are not so en gaged. Fifty per cent of the people, he stated, get their income directly or indirectly from agriculture. He went on to say that since the Civil tin t Nebraska Bankers Convention in Lincoln last month is on the opposite page. Reading from left to right in each picture, they are: 1. Seated— Louis Bromfieid, Malabar Farms, Lucas, Ohio; W . J. Coad, president, Nebraska Conservation Foundation, Inc., and president, Omar, Inc., Omaha, and Fred L. O’Hair, newly appointed executive director of the Nebraska Foundation. Stand ing— J • R- Kenner, president, Thayer County Bank, Hebron, and retiring president of the Nebraska Bankers Association, and W . H. Pierce, president, First National Banks at Shelby and Osceola, and newly-elected president, Nebraska Bankers Asso ciation. 2. H. H. Echtermeyer, yice president, Live Stock National Bank, Omaha, and Tom C. Cannon, district manager, St. Paul Terminal Warehouse Company, Des Moines. 3. David Boukal, Home State Bank, Humboldt; Byford Elwanger, assistant cashier, Home State Bank, Humboldt; R. E. Novak, vice president, Oak Creek Valley Bank, Valparaiso, and L. H. Earhart, vice president in charge, Federal Reserve Bank, Omaha branch. 4. Charles H. Walcott, assistant cashier, Security National Bank, Sioux City, Iow a; Eleanor Whitaker, Lincoln; Fred W. Trier, Ashwell & Co., Chicago, and Ernest J. Hultgren, First National Bank, Chicago. 5. George A. Knight, president, Citizens State Bank, Lincoln; N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 Two causes of surpluses, Mr. Brom fieid believes, are (1) bad distribution, and (2) high prices. Cash crops cause most surpluses and should be made available to the rest of the world where starvation prevails constantly. One of the main points Mr. Bromfieid emphasized throughout his talk was that farmers could maintain prosper ity for themselves through better man agement of all kinds and still make their commodities available at lower prices. He denounced as a “wretched spec tacle” the attempts of both political parties to “buy” the farmer’s vote with offerings of different kinds. He told the bankers that no amount of parities would ever save a poor farmer. If he can’t be a good one on his own, he will never be a good one under price support. JS e b ru s fc u C t m c im iío n A PICTORIAL REPORT of a few o f those attending the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis War, any countrywide depression has been forecast by a downfall of agri cultural prosperity. F. L. Ferrell, vice president, Nebraska State Bank, Oshkosh, and Percy Mays, vice president, Citizens State Bank, Lincoln. 6. H. J. Bornholdt, vice president and cashier, Commercial State Bank, W ahoo; F. H. Wackel, cashier, First National Bank, West Point, and W. F. Wenke, president, Pender State Bank, Pender. 7. G. E. Nelson, vice president, Farmers State Bank, Millard; A . F. Jorgensen, assistant vice president, National Bank of Com merce, Lincoln, and F. E. Peterson, president, Bank o f Stapleton. 8. Clarence Castner, cashier, Farmers and Merchants Na tional Bank, Ashland; Gus Houfek, Security Home Bank, Malmo, and C. G. Hohl, vice president, Wahoo State Bank, Wahoo. 9. Andreas Kjelgaard, president, Farmers State Bank, Big Springs; J. V. Johnson, manager, Reconstruction Finance Cor poration, Tecumseh, and Emil E. Placek, president, First Na tional Bank, Wahoo. 10. Mrs. C. H. Sudman, whose husband is vice president, Guar dian State Bank, Alliance; Harlan D. Wells, executive vice president, First State Bank, Scottsbluff; W alt D. Stroud, cash ier, Bank of Hyannis, and J. E. Yost, vice president, Farmers and Merchants Bank of M ilford. 11. Howard L. Burdick, cashier, Mrs. H. B. Loseke, whose husband is assistant cashier; Mrs. Burdick, and Mrs. W . L. Boettcher, whose husband is assistant vice president, all of Central National Bank, Columbus. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Is«.9Ct IJI F^S Ó f] £ 54 Nebraska News Governor Val Peterson of Nebraska addressed the breakfast session the second moaning on the topic of soil conservation, outlining N e b ra sk a ’ s needs, its progress and future under such a program as is now being car ried on. Other speakers on the program in cluded F. Raymond Peterson, newly elected president of the American Bankers Association and chairman of the First National Bank in Patterson, New Jersey; Kenneth K. DuVall, presi dent of the First National Bank of Appleton, Wisconsin, and J. W. Beyen, executive director for the Netherlands and Norway on the International Bank for Reconstruction and Development. Mr. Peterson discussed “Bank Credit Policies in the Coming Year” ; Mr. Du Vail reviewed the important steps in “Loaning to Small Business” , and Mr. Beyen told about the “Place of the International Bank in the Present World Monetary Problems.” Lincoln bankers were hosts at a so cial hour for delegates and their ladies the first night of the convention and preceding an excellent buffet supper. The ladies were entertained at lunch eons both days of the convention and were guests at local entertainment. The convention closed with the annual banquet and entertainment.—The End. F rie n d ly P e rs o n a l In te re st You II Find HI Three at lily National! City National’s "years ahead” facilities give you every usual correspondent service, as well as important extras such as private conference rooms and free 48-hour parking in our in-the-bank garage during your Kansas City visits. Our business "kn ow -how ” can help improve your profit picture. We’re sincerely interested in serving you. CITY NATIONAL MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Byron Dunn, president of the Na tional Bank of Commerce, Lincoln, Nebraska, has announced that the board of directors of the bank' at their . 1.1 GENE EA TO N Elected Assistant Cashier at National Bank of Commerce M ore B u sin ess " K n o w -H o w ' & 'Jh i J ESTABLISHED 1913 Elect New Officer €w nfM M V ÿ 'Rust regular monthly meeting have elected Gene Eaton as a new assistant cashier. Mr. Eaton has been employed by the bank during the past two years in the personal loan department. He is a graduate from the University of Ne braska and has lived in Nebraska all his life. 50-Year Banker I. R. Alter, president, First National Bank in Grand Island, joined the ranks of 50-year bankers in Nebraska last month. In observance of the occasion he was guest at a golden anniversary dinner in his honor, attended by 34 men and women. Mr. Alter joined the staff of the First National Bank on October 10, 1899, as janitor and mes senger boy. Working his way up through various positions in the bank, Mr. Alter became a director in 1915 and was executive vice president from 1924 until 1946, when he was elected president. Special guests at the dinner were W. Dale Clark, chairman of the board of the Omaha National Bank, Omaha, and George Holmes, president of the First National Bank of Lincoln. Di rectors, officers and employes of the bank presented Mr. Alter with a movie camera and projector. John G. Hohl tt a n N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis John G. Hohl, 73, president of the Wahoo State Bank, Wahoo, Nebraska, 17 years, died at a Wahoo hospital recently after a short illness. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 MEMBER OF FEDERAL DEPOSIT IN SURANCE CO R PO R A TIO N •f V ' * •' . ' ••' • f J* ;7^-' ‘ : -¿s' :> ■ N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 56 V DALE CLARK, chairman of the . board of the Omaha National Bank, spoke in tribute to the late C. A. Swanson, Omaha poultry processor, at a meeting of 200 Omaha Y.M.C.A. leaders at a banquet ending the Y’s successful membership campaign. Mr. Clark, principal speaker at the banquet, said: “C. A. Swanson always had the spirit of youth which the Y.M.C.A. emphasizes. He s h o w e d drive, enthusiasm and enjoyment.” The banker also praised the Y teams which signed more than 1,300 mem bers. Mr. Clark was one of the honorary pallbearers at Mr. Swanson’s funeral. Mr. Swanson was a civic leader and a director of a number of business groups, including the Live Stock Na W tional Bank of Omaha. He was also a director of the Omaha Public Power District and a member of the Creighton University Board of Regents. King Gustav V of Sweden in 1948 conferred on him the Royal Order of Vasa. Among the boards on which he served were those of the Companion Life Insurance Company of New York and the Mutual Benefit Health and Accident Association of Omaha. * * * Eugene C. Sharp, head of the real estate loan department of the First National Bank, died in an Omaha hos pital last month. He is survived by his wife and one son. * * * F. L. Catlin, widely-known in Oma ha investment circles, has returned to JhSL (B&vdsUi (BanditA It was early Fall, and the wagon train of Antonio Chavez was one of the many bound for Westport, laden with gold and silver bullion that had been re ceived in trade at Santa Fe. The wagons were almost within sight of Westport when the pirates of the prairies swooped down . . . and when they spurred away, Senor Chavez and his armed guards lay dead upon the prairie . . . and the treasure they had carried was gone. Today, the transfer of funds is easier and safer, thanks to the modern system of checks and correspondent banks. And you will find, like many of the banks of the West have found during the past half century, that a correspondent connection with Inter-State can serve you in every financial way with friendliness . . . efficiency . . . speed . . . and integrity. the Inter -S tate M V IS T O C K EX C H A N G E S LO G . National Bank '* ™ . A N » G EN ESEE S TS. Omaha and re-entered the securities field after an absence of several years. He will be associated with the Central Securities Company, founded 20 years ago by the late Lyman Cross. Mrs. Cross continues to operate the busi ness. * * * The Ak-Sar-Ben Ball in October brought Mr. and Mrs. Gwyer H. Yates back to Omaha from Santa Barbara, California, for their annual stay in their former home city. They were at the Fontenelle Hotel until after cor onation week. Mr. Yates, former United States National Bank presi dent, is also a former Ak-Sar-Ben Gov ernor. * * * An 890-pound prize calf was sold and resold approximately 75 times in an auction for the OmahaCommunity Chest at the Livestock Exchange Building. Each buyer returned the calf to its owner, J. J. Regan, Sr., chairman of the Livestock Exchange unit of the Chest drive, who then put the animal up for resale. By the end of the sale stockmen had given $1,785 to the Chest. Top bid ders included the Live Stock National N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 < A * * Daniel J. Monen, vice president in charge of the trust department of the Omaha National Bank and president of the Creighton University Alumni Council, is assisting General Chairman Dr. Joseph W. McKenna in arranging Creighton’s annual Homecoming, De cember 2nd and 3rd. Dr. McKenna is president-elect of the Alumni Coun cil. * * * National farm loan association sec retary-treasurers met recently at the Fontenelle Hotel in Omaha. Speakers included E. N. Van Horne, president of the Federal Reserve Land Bank of Omaha, and P. W . Lundy of Ness City, Kansas, president of the National Fed eration of National Farm Loan Asso ciations. Discussion leaders included Herb Honette, Red Oak, Iowa; John D. Wolf, Kearney, Nebraska, and T. A. Maxwell, Jr., Omaha. Mr. Maxwell is treasurer of the Federal Land Bank of Omaha. At the meeting, Jay Vendelboe of Clarion, Iowa, was elected new presi dent of a four-state organization of National Farm Loan Association Sec- BANKS Bought and Sold Confidentially and with becoming dignity CHARLES E. WALTERS CO. OM AHA, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i Bank of Omaha, $100. BANK EM PLO YEES P LA CED 44 Years S a tisfa cto ry Service Member Federal Deposit Insurance Corporation f. NEBRASKA V V C Nebraska News retary-Treasurers. More than one hun dred attended from Nebraska, Iowa, South Dakota and Wyoming. C. C. Sherwood, Orleans, Nebraska, w a s named vice president and Vance Deep er, Douglas, Wyoming, secretary-treas urer. New executive committee members are: Kenneth G. Baker, Omaha; F. A. Witcher, Broken Bow, Nebraska, William Fitzgerald, Millbank, South Dakota; O. H. Olseth, Huron, South Da kota, and U. A. Jarvi, Belle Fourche, South Dakota. =1= * * It took the Live Stock National Bank 20 years to buy the ground its bank building in South Omaha stands on, but the deal finally is complete. Completion of the negotiations in volved title to five-twelfths of the property. The ownership involved an Omaha priest, The Rev. Patrick MacDonald, and another Omahan who jointly erected the building; an Irish baronet, Sir Horace Plunkett, who bought the interest of one and eventually sold it to the bank; two sisters in Dublin who inherited from the priest, and the So ciety of African Missions which re ceived the interest from them. The amount finally involved was $25,000, subject to a $4,500 mortgage. * * * A Federal Housing Administration commitment was signed recently on a $1,043,000 loan which will enable Carl C. AVilson, Inc., Omaha builders, to erect 136 garden-type apartments on the Harrison Heights Golf Course. Among those present when Mr. Wil son signed the papers in the office of State FHA Director Holger Holm were Howard F. Sunshine, assistant vice president of the Manufacturers Trust Company of New York, and Herbert H. Meile of Omaha, senior vice presi dent of the Douglas County Bank of Omaha. The two institutions are mak ing the interim loan. When the 11building project is completed, the mortgage will be taken over by the New York Life Insurance Company. H * * John M. Shonsey, vice president of the Live Stock National Bank of Oma ha, discussed “Livestock Business in Nebraska” at a recent luncheon of the Omaha Concord Club. * * * Mr. and Airs. William Coring of Oma- 9 *t 57 ha are the parents of a daughter born recently at an Omaha hospital. Mrs. Loring is the former Mercedes Cald well, daughter of Air. and Airs. \7ictor B. Caldwell. Mr. Caldwell is vice president of the United States Nation(Turn to page 59, please) JU ncoht-—’T&e G o*iine*itcd — Experienced Staff . . . Specialized Service . . . In Lincoln territory use Q ìntinental R ational fW°f-K L IN C O L N Member Federal Deposit Insurance Corporation In Size In Service In St. Joseph Mr. and Airs. Frederick A1T. Clarke, Sr., longtime Omahans, recently cele brated their 60th wedding anniversary in Washington, D. C. Mr. Clarke, now 84, retired as president of the old Ne braska National Bank of Omaha in 1925. * * * YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT OMAHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis & CO. W'iimniiiiiii, FIRST NATIONAL BANK In S t. Joseph, Mo. MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 58 Nebraska News T ir ft N ew V ice ¡^resid en ts Strengthen Your Doubtful Risks With Lawrence Receipts J lJ D G E D by c r ite r io n , a its c o n ta in s m any account w h ic h p la c e d on p r e v a ilin g b a n k ’s lo a n s m ay r is k p o r tfo lio on open w e ll be a s e c u r e d b a s is . Lawrence warehouse receipts, issued on the borrower’s inven tory, will protect the lender with fundamentally sound collateral. New” Small Business” Depart ment now extends Lawrence service to inventories valued as low as $5,000. Lawrence warehouse receipts are supported by the strongest financial statement in the field warehouse industry. Lawrence has always discharged, in full, its liability to all holders of Lawrence Warehouse receipts. Lending institutions have profited with Lawrence fieLd warehousing in dealing with more than 20,000 business firms, over a period of 35 years. Booklet Gives Field Warehouse Facts Tells how Lawrence field warehousing makes secured credit possible for accounts in your portfolio. Write for free copy, "Borrowing on Inventory.” JOHN M. SHONSEY A L B E R T R. S TELLIN G Elected vice presidents by Live Stock National of Omaha Kansas. He has served the Omaha Chapter, A.I.B., as an instructor in a course on home mortgage lending and has been a member of the committee on real estate mortgage loans in the savings division, American Bankers Association. Mr. Shonsey joined the bank early this year and has devoted his time to the servicing of livestock loans and also as consultant to the Live Stock National’s correspondent banks and their customers in matters relating to the production of live stock. ENRY C. KARPF, president of the Live Stock National Bank of Oma ha, announces that Albert R. Stelling, formerly assistant cashier, and John M. (Jack) Shonsey were elected vice presidents at a recent meeting of the board. Mr. Stelling is in charge of the real estate loans and trust departments, having been with the Live Stock Na tional Bank since 1941. He has had twenty-nine years of experience in the banking field, starting on his first bank job at the age of 14, in Sylvan Grove, H As the official experts of the Nebraska Bankers Association, we have served Nebraska bankers since 1881 in timelock, safe and vault inspection. • Our 24-Hour Continuous Service Guarantees You Iawrence Warehouse fOMPANY N a t io n w id e F ie ld W a re h o u s in g DIVISION OFFICES: SAN FRANCISCO 1 1, CALIF. NEW YORK 5, N. Y. 37 Drumm St. 72 Wall St. CHICAGO 2, ILL. 100 N. La Salle St. Los Angeles • Boston • Philadelphia • Pittsburgh Buffalo • Cleveland • Cincinnati • Kansas City St. Louis • Atlanta • Des Moines • Charlotte New Orleans • Houston • Dallas • Denver • Phoenix Portland • Seattle • Spokane • Stockton • Fresno Washington, D. C. • Manila, P. I. N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Immediate Attention • W E SELL SAFE DEPOSIT BOXES — VAULT DOORS — SAFES — NIGHT DEPOSITORIES — VAULT VENTILATORS — BANK LOCKS and DAY PROTECTION EQUIPMENT Discount to members of the Nebraska Bankers Association F. E. DAVENPORT & CO. OMAHA, NEBRASKA Nebraska News O M AHA NEW S (Continued from page 57) al Bank of Omaha. The baby is the first grandchild of Mr. and Mrs. Cald well. * * * One hundred and sixty persons at tended the recent picnic at Vennelyst Park in Omaha for employes of the Live Stock National Bank of Omaha and their families. * * * Robert H. Hall, who resigned as vice president and treasurer of the North Side Bank of Omaha in 1948 to open his own Omaha insurance agency, has been elected executive vice president of the Metz Brewing Company of Omaha. * * * Mr. and Mrs. Austin L. Vickery have returned from an extended eastern trip. Mr. Vickery is vice president of the United States National Bank of Omaha. They visited Montreal and Quebec in Canada and Bar Harbor, Maine; New York City and Boston. At Harvard University they saw their son, Dr. A. L. Vickery. * * C. Dean Vogel, vice president of the Live Stock National Bank of Omaha, was selected as one of the four vice chairmen of the Omaha Community Chest drive. Mr. Vogel is a member of the Chest Board of Governors. The Omaha campaign was to raise $807,483. * * * Nebraska Governor Val Peterson and Lieut. Gen. Curtis E. LeMay, chief of the Strategic Air Command at Offutt Air Base near Omaha, attended the recent Boys Town-Scottsbluff benefit football game in Omaha. They were invited by -I. Francis McDermott to be guests in his box. Mr. McDermott is vice president of the First National Bank of Omaha. Boxes also were reserved by H. C. Karpf, president of the Live Stock National Bank of Omaha, and Edward F. Pettis, former banker who now is a department store executive. * * * A recent report of the Federal Re serve Bank of Kansas City showed that Nebraska again was the bright spot in department store sales in the five states surveyed by the bank. For a recent four weeks’ period de partment store sales in Omaha, Lin coln and Hastings were 7 per cent ahead of the same 1948 period, while for the entire Tenth Federal Reserve District the average of sales was 5 per cent below a year ago. Nebraska was the only state to re cord a percentage increase (3 per cent) in general retail sales volume for the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis four weeks. And for the final week, Nebraska’s 11 per cent increase was well ahead of other states in the area, some of which showed losses. * * * Mr. and Mrs. Robert Alexander of Chicago have named their new daugh ter Mallory. Mrs. Alexander is the former Barbara Mallory of Omaha, daughter of Mr. and Mrs. Richard H. Mallory. Mr. Mallory is vice president of the United States National Bank of Omaha.—The End. Complete Council Rooms The First National Bank of York, Nebraska, has just completed two council rooms on the second floor of 59 the bank building which will be avail able to the public as well as patrons where small conferences may be held, according to J. R. McCloud, president. Joins Sidney Bank Added to the staff at the American National Bank of Sidney, Nebraska, is Harold D. Burgett, as assistant cashier. Named Polk Cashier Kenneth Stewart of Wahoo has been named cashier of the Citizens State Bank at Polk, Nebraska, filling the vacancy caused by the death of Arnold Isaacson, victim of an airplane crash. Mr. Stewart is a native of Marquette, Nebraska. N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 60 TWENTY-FOUR HOUR TRANSIT TERM INAL. • -V -y - - M -4 ' A TH AT’S THE W A Y SOME FOLKS THINK OF US. More than 400 local banks depend upon Live Stock National Bank for speedy, dependable Transit Service. You might 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. We have only one schedule . . . the fastest possible within the limits of accuracy. Give us a try, next time you need extra-fast action on your transit items . . . you’ll find we can save as much as a day’s time on transactions . . . build more profits and better customer relations for you. Live O T H E M stock « bank A BANK Member of OF Federal ft ort/i western B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H N E B R A S K A A F R I E N D L Y Reserve and Federal 2 4 - H O U R D eposit Insurance S E R V I C E Corporation V 61 Mourn MMunkers E lect •/. jP. K en n ed y P resid en t Prominent Speakers Appear Before Record Crowd of 2,306 Delegates at 63rd Annual Convention LTHOUGH it has already long been noted for its outstanding conventions, the Iowa Bankers Association came up last month with what is considered by many to be the finest program ever set before dele gates to the annual meeting. Attend ance set a new record with 2,306 regis tered. Retiring President Harry W. Schaller and his many co-workers turned in excellent reports of progress during the year, and more than a dozen nationally prominent speakers took the platform to discuss current problems of vital interest to bankers everywhere. On the final morning of the three-day annual convention, an enthusiastic, unanimous vote of approval was given to the nomination of J. F. Kennedy, president, First National Bank, New Hampton, as president of the Iowa Bankers Association, succeeding capa A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ble Harry Schaller, president, Citizens First National Bank, Storm Lake. C. K. Cnllings, president, Exchange State Bank, Exira, was elected vice presi dent and treasurer. Frank Warner was reappointed secretary of the Asso ciation, starting his 34th term in that office. Iowa A.B.A. Election At the meeting of Iowa A.B.A. mem bers, presided over by W. Harold Brenton, A.B.A. vice president for Iowa, the following elections were made: Executive Councilman for Three Years—W. W . Blasier, president, Farm ers State Bank, Jesup, succeeding Max von Schrader, president, Union Bank & Trust Company, Ottumwa. Nominating Committeeman — A. T. Donhowe, vice president, Central Na tional Bank and Trust Company, Des Moines, succeeding himself. N E W OFFICERS of the Iowa Bankers Association are shown above. At the left is President J. F. Kennedy, president, First National Bank, New Hampton, and at the right is Vice President and Treas urer C. K. Cullings, president, Ex change State Bank, Exira. Alternate Nominating Committee man— Frank C. Welch, president, The Peoples Bank and Trust Company, Cedar Rapids, succeeding B. A. Gronstal, president, Council Bluffs Savings Bank. Vice President, National Bank Divi sion—V. P. Cullen, executive vice pres ident, National Bank of Burlington, succeeding himself. Vice President, Savings Bank Divi sion — Clay W. Stafford, president, Ames Trust and Savings Bank, suc ceeding himself. Vice President, State Bank Division — Grover S. Krouth, president, Iowa Trust and Savings Bank, Oskaloosa, succeeding himself. Vice President, Trust Division — Clyde H. Doolittle, vice president, Iowa-Des Moines National Bank, Des Moines, succeeding B. M. Wheelock, vice president, Security National Bank, Sioux City. Mr. Donhowe, chairman of the spe- AT THE LE FT — Snapped at the Iowa Bankers Convention last month and read ing from left to right in each picture are: Top left— W . Harold Brenton, Des Moines, president o f the Brenton State Bank at Dallas Center, among other Iowa banks, presenting the ivory gavel to retir ing President Harry W . Schaller, president, Citizens First National Bank, Storm Lake. Top right— Richard R. Rollins, director, Bankers Trust Company, Des M oines; Con over Model Jean Eyres, New Y ork City, who is accompanying the team of nation ally known cartoonists on their Savings Bonds tour as a model, and Alfred Andriola, New York City, author of the “ Kerry Drake” cartoon strip and a member o f the artists’ troupe. Lower le ft— Frank C. Welch, president, The Peoples Bank & Trust Company, Cedar Rapids, has his famous grin immortalized by Milton Caniff, author o f the cartoon strip “ Steve Canyon” and who is recog nized as America’ s greatest living cartoon artist. Lower right— James Pullman, vice presi dent, Fremont County Savings Bank, Sid ney, and Fred Bellows, Live Stock National Bank, Omaha. Northwestern Banker, November, 1949 62 Iowa News cial resolutions committee, formally proposed to the convention the name of W. Harold Brenton, president, Brenton State Bank, Dallas Center, among other Iowa banks, as a candidate for the vice presidency of the A.B.A. at the 1950 convention, looking toward his ultimate advancement, if elected in 1950, to the presidency of the A.B.A. The formal resolution was enthusiasti cally endorsed from the floor. ★ New Iowa Song were available, Meredith Wilson made this one record especially for dedica tion to the Iowa Bankers’ annual con vention, and the record then was pre sented as a gift to Iowa Governor William S. Beardsley, a convention speaker. Entertainment during the conven tion was overflowing, both as to qual ity and quantity. The new Sunday evening dinner and entertainment pro gram was well received and attended; the social hour, hosted by the Des M o i n e s Clearinghouse Association, drew hundreds; the Gay 90’s dinner and party was really overflowing at KRNT Radio Theatre, where a few “bumps” were absorbed, and the stage show presided over by George Jessel and presenting featured acts from all over the country was a sell-out at KRNT Theatre. An affair which has been traditional at the annual convention of the Iowa Bankers Association, and one of the most enjoyed events, is the breakfast sponsored by the American National Bank & Trust Company of Chicago. The south ballroom of the Fort Des Moines Hotel is no small room, and it was filled with happy breakfasters from shortly after 8:00 o’clock to well toward 10:00. Hosts for the occasion were Vice Presidents O. Paul Decker and Charles C. Kuning and Assistant Vice President William B. Whitman. A novel feature of the convention was the first public airing of a new song written by Meredith Wilson, wellknown radio and musical star and a native of Mason City. The song is en titled “ Iowa Indian Song” and will be released some time during November by Decca recording company, with Bing Crosby doing the vocal. For this occasion, because no advance copies ★ ★ YEAR-ROUND SERVICE Helping you on your correspondent items at the First National Bank in Sioux City is not on a parttime basis. It is based on permanent cooperation—365 days per year—day or night—and Holidays, if you need it! Sincere, too, is our desire to have you profit from a connection with this bank in Sioux City. Your account here will be welcome! The special ladies’ program, at which Ilka Chase, screen, stage and radio A. G. SAM, Chairman of the Board I. T. Grant, President H. V. Bull, Vice President W. L. Temple, Assistant Vice President J. R. Graning, Cashier star appeared, was another new fea ture well received. After her interest ing talk, she stayed for a tea and re ception to visit with the ladies at the meeting. E. A. Johnson, Assistant Cashier H. H. Strifert, Assistant Cashier K. J. Shannon, Assistant Cashier E. E. Snell, Assistant Cashier Artists Iowa’s Vernon L. Clark, now in Washington as national director of the U. S. Savings Bonds Division of the Treasury, arranged for the appear ance in Des Moines of a troupe of na tionally known newspaper cartoonists, who are on a trip to a select list of cities promoting the sale of savings bonds. They appeared at the conven tion for a 45-minute period, each draw ing his own particular comic strip' character, and made a big hit. Because of space limitations, it would be impossible to present fully the many interesting talks given at the convention. Here are excerpts from the talks of a few of the speakers: Ç tid t NATIONAL BANK in SIOUX CITY MEMBER FEDERAL RESERVE SYSTEM MEMBER 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 I R S T N A T IO N A L B A N K B U IL D IN G N o r t h w e s t e r n B a n k e r, November, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis President Reports Harry W. Schaller: -------------- “The federal Scarborough & Company C H IC A G O 3, IL L IN O IS Insurance Counselors STATE 2 4325 to Banks 63 s IO W A C O NVENTIO N GROUPS— Reading from left to right in each picture are: L e ft— A well-known Iowa banking fam ily— Mrs. W. L. HaesW . L . Haesemeyer, president, Central State Bank, State Center; Mrs. C. H. Haesemeyer; Mrs. Carl Haesemeyer; C. H. Haesemeyer, president, Union Trust and Savings Bank, Stanwood, and Carl Haesemeyer, cashier, Union Trust and Sav ings Bank, Stanwood. emeyer; X IO W A CO NVENTIO N GROUPS— Reading from left to right in the above pictures are: L eft— New Iowa Bankers Association President J. F. Ken nedy; Leo J. Wegman, president, Citizens Savings Bank, Anamosa; Franklin D. Roosevelt, Jr. and Mrs. Roosevelt, New Y ork City, and Richard R. Rollins, director, Bankers Trust Company, Des Moines. Center— Miss Sylvia Porter, a convention speaker, financial IO W A CO NVENTIO N GROUPS— Reading from left to right in the above pictures are: 7 L e ft— W . Dean Vogel, vice president, Live Stock National Bank, Omaha; A. E. Jensen, president, First National Bank, Creston; H. J. Stuhlmiller, president, State Savings Bank, Fontanelle; Paul Hansen, vice president, Live Stock National Bank, Omaha, and Charles C. Rieger, vice president, Marquette Na tional Bank, Minneapolis. Center— John E. Rowles, assistant examiner, Iowa banking https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i Center— Dale H. Smith, executive vice president, Tipton State Bank, Tipton; Irwin Mosher, cashier, West Liberty State Bank, West Liberty, and Ernest J. Hultgren, representative of the First National Bank, Chicago. Right— Dale ings Bank; B. Bank & Trust Bank & Trust K . De Koster, assistant cashier, Waterloo Sav L. McKee, executive vice president, Muscatine Company, and F. W . Allen, cashier, Muscatine Company. editor, New Y ork Post, New York City; Mrs. J. V. Keppler, whose husband is cashier, First National Bank, Dubuque, and Vernon L. Clark, national director, U. S. Savings Bonds Division, U. S. Treasury, Washington, D. C. Right— Guido F. Verbeck, Jr., assistant treasurer, Guaranty Trust Company, New Y ork City; Richard E. Thomas, assistant cashier, National City Bank, New York City, and Marshall Corns, W olf & Company, Chicago. department, Des M oines; L. H. Vance, examiner, Iowa banking department, Webster City; W . Ben McLuen, cashier, Anita State Bank, and Everett A. Colton, assistant examiner, Iowa banking department, Des Moines. Right— W . H. Brenton, Des Moines, president, Brenton State Bank, Dallas Center; E. Howard Hill, president Iowa Farm Bureau Federation, Minburn; Allan B. Kline, president American Farm Bureau Federation, Chicago, and William S. Beardsley, Governor of Iowa. N o r t h w e s t e r n B a n k e r, N o v e m b e r , 7949 64 Iowa News budget has been out of balance during sixteen of the past seventeen years, and there is no apparent serious inten tion to bring it back into balance in the visible future. . . . While the ac cepted methods of federal finance have changed greatly in the last generation, we must use what influence we have to keep our customers and our com munities from emulating that exam ple. We must continue to work for financial sanity locally, as well as na tionally. . . . We know it is not the American concept to look to Washing ton for aid every time a ripple appears on the surface of our economy. . . . We all know this, and yet some bank- ers clamor for more government guar antees against losses on loans, and some of us have been prone to make doubtful loans, simply because we have been guaranteed against loss by some governmental agency. No bad loan was ever made into a good loan simply through the guarantee of the federal government. . . . Certain fed eral agencies can be of real service . . . but let us not use (them) as a means of making unsound loans.” Stop Apologizing president, American Farm Bureau Federation, Chicago: “We live on what we can buy with what we get for what we produce. . . . Allan Kline, We (farmers) only want the right to be prosperous. . . . Farm legislation should be on a bi-partisan basis. . . . The farmer will be very ill-advised if he goes to Washington and tries to get 5, 6 or 7 billion dollars under the Brannan Plan. “ It’s time America stopped apologiz ing for itself; it’s time American busi ness stopped apologizing for itself (editor’s note: for ‘bigness’ and pros perity). . . . We must necessarily have a regulated free enterprise, but it is also essential to have ‘bigness’ in it. All peoples and all businesses must be represented. . . . In all history there has never been anything that can com pare with America as a prize. There are all kinds of people trying to take this country over and they aren't all foreigners. If you don’t look out, someone’s liable to get the job done.” Need Responsibility Seymour, president, Yale University: “ Irresponsibility in the in dividual or a nation leads to decadence. . . . Decay always comes when people expect free handouts from the govern ment. . . . The development of the dem ocratic system and its maintenance results from the energetic leadership of those in positions of importance and trust . . . from the sense of re sponsibility which pervades the entire people . . . for the well-being, not of a group, but of the whole nation. Charles T .. A nd thatevening, at the president’s home—” A m o n g our many close correspondent relationships is on e with a bank in a n eig h borin g state, w hich first called us in to m ake a study o f its costs and charges. After tw o o f our m en th orou gh ly familiar with these fun ction s in banks both large and small had m ade their studies, they reported to us: “ That evening, at the president's home, with several of the hank's directors present, ive had a thorough discussion of costs and operations . . . From that time on , the Harris Trust has advised this correspondent bank u p on m any m ajor problem s, inclu d in g bank layout, auditing and Trust Departm ent developm ent. This Bank takes professional pride in doing all it can to help its correspondents render a finer and more complete service in their fields. When we as your Chicago correspondent can assist your bank with any o f its problems, please feel free to call upon us. H arris Trust a nd Savings Bank Organized as N. W. Harris & Co. 1882 • Incorporated 1907 115 West Monroe Street, Chicago 90 M em ber of Federal Reserve System M em ber of Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n k e r, N o v e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “The direct challenge of Commu nism is only a minor aspect of our danger. I am not afraid of it. Much more sinister is the growing tend ency to lay all our troubles in the lap of government. . . . Our answer to the Communistic challenge must he positive, a vigorous reaffirma tion of the values of traditional Americanism. . . . Let us not for get that Ave pay a high price for every new step in governmental intervention and government as sistance, not merely in the in crease of our tax bill, but in the softening of the moral fiber of our citizenry.” F.D.R., Jr., Airs Views Franklin D. Roose\relt, Jr., New York City Democratic Congressman: “The banking system was probably saved from disaster by the New Deal. It has done very well under the Fair Deal. . . . Since its inception RFC has loaned SV2 billions to banks. Can any bank er properly oppose the government loaning money to local housing proj ects? . . . The total volume of deposits in banks insured by the F.D.I.C. is 130 billion dollars. . . . In view of these facts, can any banker properly oppose legislation to guarantee a fair mini mum wage for the wage earner? . . . Government has been instrumental in setting up a huge social security sys- 65 T H R O U G H THE B A N H T h o s e shiny new cars on the sales floors . . . the auto matic laundries . . . your favorite restaurant. . . the corner drugstore, dry goods store, even the theatre . . . all the count less shops and businesses, big and small, along Main Street, pass through the doors of the bank. That is the reason Main Street, with its diversified service, can keep its doors open. Y o u , their Main Street Banker— their friend and neigh bor— are the backbone of the Community . . . always ready to serve Main Street and the surrounding community. RU SSELL L. STO TESBER Y President LYN N FULLER ExecutiveVice President DEPARTMENT OF BANKS AND BANKERS C H A R LE S C. RIEG ER O TTO H. Vice President THE S T R O N G F R I E N D OF THE I N D E P E N D E N T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OF F E DE RA L PREUS MINNEAPOLIS DE P OS I T I NSURANCE CORPORATI ON President B A N K E R BANK IW Am& A^LD m E%A I I EC TI TI E E ME MB E R Assistant Vice 66 Iowa N e w s THE TRAV-LER THE SECRETARY THE EXECUTIVE Three personalized checkbooks that spell customer satisfaction and more accurate sorting and filing, plus a saving in money, to all banks that sell them. THE TRAV-LER: You all know about this checkbook. It is our popular Personalized Pocket Check already used by several million people. We have just given it a new name to tie it in with its two new companion check books. THE SECRETARY: Exactly the same as The Trav-ler except that it is bound three checks to the page for the desk at home. With the attractive, gold-stamped cover, three hundred checks sell for $2.00. THE EXECUTIVE: Again the same construction — three-on-apage with the convenient, singleline register—except that this book uses the large-sized customer’s check. Designed for the business or professional man who keeps his book in his desk at the office. Same attractive gold-stamped cover, three hundred checks for $2.75. These three checkbooks "round out the line” and provide a per sonalized check for the pocket, the home, the office. Why not sell all three and eliminate your check expense? Write for samples and detailed information. ' M u: M a n u fa c t u r in g P la n ts a t : N E W Y O R K , C L E V E L A N D , C H IC A G O , K A N S A S C I T Y , ST. P A U L CHECK PRINTERS ■HSMËÉMMMBi cOne. tem to aid banks in need. We call it the Federal Reserve System. Can a banker properly object to the govern ment setting up an effective social se curity system for the vast majority of the American people? “The historical trend over the next few decades will be toward more governmental activities on behalf of the people, rather than less, such as a broader social se curity program, unemployment in surance and ultimately, some type of health insurance, and T don’t mean socialized medicine. As this trend develops, we have more and more need of men, such as the men in this audience, who are devoted to the idea of things being done economically and efficiently. . . . In your hands, as representatives of the American banking system, rests in large measure the financial future of the world. “Make no mistake about it, the colo nial days of the large house on the top of the hill and the coolies working in the fields below are over. The peo ples of the world are on the march, either toward serfdom with political slavery or economic security with po litical freedom. . . . I see no threat to capitalism in America if the capi talists of America fulfill their high promise to the people.”—The End. Mies 31o in es JVetrs 5 MINUTES FROM DOWNTOWN LOS AHGILES At the Chelsea, every guest room is a large outside room, with its own private bath. All are beautifully decorated and designed for comfort. A truly outstanding downtown hotel perfect for those who wish to be in mid-city, and yet prefer a quiet home-like atmosphere. The Chelsea is near-Radio Center, Huntington Library, Forest Lawn Memorial Park, China City, Movie Studios, Beaches. Rates from $3.00. Beautiful New Coffee Shop Now O pe n H O T E SOUTH No rthw e ste rn Banker, November, 7949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BONNIE BRAE I N THE fall of 1947, a special train I carrying a number of delegates to the Financial Public Relations conven tion in San Francisco was halted at Wamsutter, Wyoming, on account of a wreck several miles ahead. In spite of the delay, the members of the train had a lot of fun and in memory of the occasion a club, known as the Wamsutters Club, was organized last month at the F.P.R.A. convention in Chicago. With proper ceremony, the club elected officers, including engineer, Harold P. Klein, vice president of the Iowa-Des Moines National Bank, Des Moines; conductor, Herbert Wells, and fireman, Betty Sutton. It is planned to make the club a per manent one for purposes of fun only. * * * The State Bank of Des Moines will be opened in Beaverdale late in De cember, with W. Harold Brenton, head of the Brenton group of banks, as pres ident, and Bindley Finch of Dallas Cen ter, executive vice president and man ager. The new bank, the charter of which has been approved by the Iowa Bank ing Department, will occupy the build ing at 2721 Beaver Avenue. Mr. Finch, who now is executive vice president of the Brenton State V V p Y T 67 PROMPT SERVICE IN DES MOINES VALLEY BANK AND TRUST COMPANY DE S M O I N E S MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis No rthw e ste rn Banker, November, 1949 68 Iowa News Bank of Dallas Center, will be a direc tor. Other directors will be Mr. Brenton; Orville L. Dykstra, Des Moines at torney; G. C. Kelly, Des Moines; C. S. Johnson, Perry, and O. D. Ellsworth, Adel. A former Des Moines banker, Wal T. Miller, has recently been elected vice president, comptroller and director of Systems, Inc., of Warsaw, Indiana, a firm which specializes in building title and abstract plants throughout the nation. Mr. Miller was with the Iowa-Des Moines National Bank in Des Moines as assistant comp troller prior to 1936. He was a na tional bank examiner for 10 years. lace Increase Capital Stock At a recent special stockholders’ meeting, an increase in capital stock of the National Bank of Waterloo, Iowa, in the amount of $250,000 was authorized. This makes the capital $500,000, with the increase being ef fected by a $250,000 stock dividend. Capital structure now consists of $500,000 in common stock, $400,000 in the surplus account, and $325,000 in the undivided profits account for a total capital of $1,225,000. When the bank was established in June, 1933, its total capital was only $250,000. Deposits at that time were $1,095,000. Since that time they have increased to more than $23,000,000 at the present time. Promoting Dairy Spot Bremer county soon will be publi cized more extensively as the “Dairy Spot of Iowa” through special checks being prepared for the Denver Savings Bank in Denver. S. C. Kimm, cashier of the bank, is promoting the use of these checks, which have the neces sary checkbook data superimposed over a sepia background in the center of which is pictured the pride of Bremer county, a dairy cow. Mr. Kimm reports the checks are expected from the Todd Company for use about the first of the year. Hans N. Boyson Hans N. Boyson, retired vice presi dent and director of the Merchants Na tional Bank in Cedar Rapids, died at his farm near Marion, Iowa, last month following a long illness. He had been associated with the bank 43 years be fore resigning in 1948 because of ill health. Junior Check Accounts HIS YEAR as in the past years Americans will send millions of dollars abroad as Christmas Gifts to rela tives and friends. We offer an easy-to-operate foreign remittance service to banks that do not maintain direct overseas connections. Our service is complete. We furnish the necessary money order and draft forms, advertising copy, posters and circu lars, and suggest solicitation methods. Our forms, which are supplied free of charge, are simple and easy to use. Orders entrusted to us are forwarded direct from Chi cago to the country of destination. Our drawing facilities enable our bank correspondents to issue checks on all important cities throughout the world. We will be happy to send you, without obligation, complete details of our foreign remittance service. T A M ER ICA N N A TIO N A L BAN K A N D TRUST C O M P A N Y OF CH ICAG O MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION LA S A L L E AT W A S H I N G T O N JB B l The First National Bank, Oelwein, Iowa, is instituting a new banking service for the youth of that commu nity. It is known as the “Junior Checking Account.” Believing there is a need for this, it has been set up primarily for use by newspaper carrier salesmen, al though it is open for all boys and girls under 17 years of age who wish to deposit their earnings and check on them as they desire. Leave of Absence Officials of the Toy National Bank and the Farmers Loan and Trust Com pany, both of Sioux City, Iowa, recent ly announced that E. H. Spiecker, vice P * * BOOKBINDERS "44224 O KTI BROTHERS FOURTH andCRAND DES M O IN E S No rthw e ste rn Banker, No vember, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa N e w s president, will take an indefinite leave of absence from his bank duties. Elect New Director At the annual meeting of the stock holders of the Titonka Savings Bank at Titonka, Iowa, Judge G. W. Stillman of Algona was elected to the board of directors and the following directors were re-elected: AVm. Boyken, R. L. Krantz, Carl Giesking and Edward Boyken. Fifteen thousand dollars was added to the surplus account and the usual dividend paid. Organized with a capi tal of $15,000 in 1916, the total capital structure now is over $150,000, with deposits of nearly $2,000,000. Officers are AVm. Boyken, president; R. L. Krantz, vice president; Edward Boyken, cashier, and A. AV. Boyken, assistant cashier. Carson Office Change The Council Bluffs Savings Bank has arranged to open a branch office at Carson, Iowa, in the building now occupied by the State Savings Bank, according to B. A. Gronstal, president of both the Council Bluffs Savings Bank and the present State Savings Bank of Carson. Sponsors Essay Contest As its contribution to the Fall Fes tival held in Bloomfield, Iowa, last month, the Davis County Savings Bank sponsored an essay contest on the subject “AVhy Bloomfield Is a Good Place to Trade.” 69 First prize in the contest was a $25 Savings Bond; second prize, $7.50 in cash, and third prize, $3.75. C. W. Gadd C. AV. Gadd, 78, Fort Dodge, Iowa, banker, died last month after a long illness. He had been associated with the State Bank in Fort Dodge since 1929, and was chairman of its board of directors. Enlarge St. Ansgar Bank The St. Ansgar Citizens State Bank, St. Ansgar, Iowa, is being remodeled by a 43 foot one-story addition on the New Creston Director Tom Mullin, Creston attorney, re cently was elected a member of the board of directors of the Iowa State Savings Bank, Creston, Iowa, succeed ing Thomas L. Dougherty on the board, President S. Ray Emerson announced. J. J. Miller Retires Jacob J. Miller’s name has been synonymous with banking in AVaterloo, Iowa, for more than four decades. Now, after 43 years, he has retired as vice president and cashier of the AVaterloo Savings Bank. AVhile re maining as a member of the board of directors of the bank, he will engage in the real estate business in an office at 501 AVaterloo Building. ROVERS FRIENDLY SERVICE C OV E RS ALL CHI CAGO. THE DROVERS NATIONAL BANK IS N e v e r in A DIRECT the history C HI CAG O CLEARING HOUSE. o f man has I TS FACI LI TIES FOR SPECIAL the prom ise MEMBER OF THE HANDLING OF ITEMS THROUGH- of som ething OUT THE CITY ARE COMPLETE. fo r nothing ever been fu lfilled by anyone. Quality for 88 Years DROVERS R A T I O N A L B A N K DROVERS T R U S T ' S S A V I N G S BANK U N I O N S T O C K Y A R D S , C H I C A G O Frankel’s https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OES MOINES fey Members, Federal Deposit Insurance Corporation No rthw e ste rn Banker, November, 1949 70 Iowa News back of the building. The new addi tion will allow for an 11 by 16 foot directors’ room in front. There will be two cages and a bookkeeping de partment, in addition to other in creased facilities. Elect Director At a meeting of the board of direc tors of the Citizens State Bank, Iowa Falls, Iowa, recently, Geo. L. Carstens of Ackley was elected a member of the board. Mr. Carstens takes the place of Lawrence Wingert who was serving on the board at the time of his death recently. RUBBER S TA M P , INC. i 421 m k N in t h S t e e e t n U rL cJ n Ii N lMu U I l FL q U ^ m As the official experts of the Iowa Bankers Associa tion, we have served Iowa bankers since 1881 in timelock, safe and vault inspection. • Our 24-Hour Continuous Service Guarantees You Immediate Attention • New Banking Quarters The Farmers Savings Bank at Kalona, Iowa, received a real birthday treat recently when it got a complete new set of banking rooms on the same spot where it has been operating for the past 50 years. The accompanying pho t o g r a p hs show the modern style that sets off A corner view o f the new Farmers Savings Bank the new banking structure. The en tire interior is air conditioned, modern window and decoration designs add to the friendly atmosphere and all new fixtures, tellers’ windows and customer WE SELL SAFE DEPOSIT BOXES — VAULT DOORS — SAFES — NIGHT DEPOSITORIES — VAULT VENTILATORS — BANK LOCKS and DAY PROTECTION EQUIPMENT. Discount to members of the Iowa Bankers Association F. E. DAVENPORT & CO. OMAHA, NEBRASKA Behind the tellers’ windows accommodations complete the picture. Officers of the bank are Ferd E. Skola, president; William C. Chapek, vice president, and A. A. Jackson, cash ier. Deposits in the 50 year old Farm ers Savings Bank are approximately $1,500,000. Leaves Williamsburg Robert Stewart left the position of cashier in the Security Savings Bank, Williamsburg, Iowa, recently to take up the office of accountant of all the municipal utilities of the city of Cedar Falls, Iowa. James Nuckolls James Nuckolls, 74, dean of Hardin county bankers, died recently in the YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPO RT & CO. O M AH A No rthw e ste rn Banker, November, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa News tinnii in AVrr ifn n rtvrs 71 DEAR EDITOR (Continued from page 9) “ A balanced budget, in my opinion, is es sential and vital to the welfare of our na tion and no one holds firmer convictions on this point than I. In fact-, I have yet to talk with any thinking person who upholds or supports deficit financing. This disagree ment seems to lie in the method of accom plishing the balance. Each one o f us should put forth his best effort to correct this dangerous situation. “ However, the national debt is also a vital factor in our economy which will have an important effect for many years on the welfare o f business, industry and the in dividual citizen. Its proper management is of concern to everyone of us regardless of the state of the budget. Achieving and maintaining a wide distribution of the debt through the sale of Savings Bonds is gener ally recognized in the fields of banking and industry as an important part of the O P E N IN G D A Y — The Home Bank, Savannah, Missouri, capitalized at $50,000, with a surplus of $75,000, moved into its new quarters in its new building recently’. Pictured above is the bank lobby banked with flowers from friends and customers. Officers of the Home Bank are H. F. James, president; D. F. Turner, vice president; and Benton Van Horn, cashier. Eldora Memorial Hospital where he had been a patient for two days. He had been in ill health for some G eared to the Banking Business time, but had remained active in the Hardin County Savings Bank in Eldora, Iowa, of which he was president. SMALL and MODERATE SIZE INVENTORY LOANS when collateralized by WAREHOUSE RECEIPTS issued by WILLIAM H. BANKS WAREHOUSES, INC. may be safely and profitably handled by banks. Small, as well as moderate and large size inventory loans have been very successfully financed with WILLIAM H. BANKS Ware house Receipts for a period of over 55 years. Write or phone us today tor details. D IV IS IO N ENVELOPES B A N K E R S FLAP ...seals quickly and stays sealed. Protect bulky mail in these strong shouldered, wide seamed, deeply gummed envelopes. Write for samples and prices. OFFICES Des Moines, Iowa A: St. Louis, Mo. Madison, Wis. A Angola, Indiana Grand Rapids, Mich. it Fayetteville, Ark. San Antonio, Texas T e n s io n En v e l o p e Co r p . New Y o rk 14, N. Y. M inneapolis 1, Minn. St. Louis 10, Mo. Oes Moines 14, Iow a K an sas C ity 8, Mo. CORRESPONDENT BANKS Your Interests Are Our Interests: Contact us on any problem in which you think we can be of assistance. THE TOY NATIONAL BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M em b er Federal D eposit Insurance Corporation No rthw e ste rn Banker, November, 1949 4The P erfect Sunshine M o n th s" ST. PETERSBURG ’ j / e ¿/rrtt.t/rtte mmosT 100% sunsHinE ” T LU II I D A ■ Every room of sparkling beauty overlooking the always enchanting Waterfront Park, Tampa Bay and the Central Yacht rooms single or en-suite have private hath. elegantly. Exquisite Palm Boom . Basin. A ll Excellent cuisine served Sun kissed Mezzanine Lounge. Play at your favorite sport, swim, sun bathe, boat, fish, ride, tennis, golf, badminton, or rest and relax in the glorious Florida sunshine. Enjoy the facilities of the private Bath Club on the Gulf of Mexico. Stay at the luxurious Soreno H otel; make your Florida visit supreme. American or European Plan. JOHN J. DEWEY, Managing Director WRITE THE S O R E N O HOTEL FOR FURTHER IN F O R M A T IO N AN D LITERATU RE N o rthw e ste rn Banker, November, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa News wise debt management. And the need for this distribution exists independently o f a balanced budget or deficit financing. “ In my opinion, all of us should support this program if we feel it is good fo r the nation while at the same time we should exert every effort and influence at our com mand to bring the national budget into balance and put our Government on a sound business basis. “ I would also like to make this letter the occasion for once again extending to the bankers our sincere appreciation and thanks for the loyal and effective support they have given and are giving to the Savings Bonds program.” Vernon L. Clarlc, National Director U. S. Savings Bonds Division, Treasury Dept. Washington, D. C. Charles Z. Henkle Charles Zane Henkle, vice president in charge of the sayings department A of the Continental Illinois National Bank and Trust Company of Chicago, died last month, age 57. Position of Vice President avail able in 2y2 million dollar bank in rich farm dairy section. Very substantial investment required. Write AD, c/o NORTHWESTERN BANKER. 527 7th St., Des Moines, Iowa. Q m sL A iu fa h DES MOINES BUILDING-LOAN & A d d r e s jo jr a p h SAVINGS ASSOCIATION S o v in q A , Oldest in Des Moines 210 6th Ave. Dial 2-8303 ELMER E. MILLER Pres, and Sec. 73 HUBERT E. JAMES Asst. Sec. IO W A LITHOGRAPHING •COMPANY FOUNDED BY GEORGE M RAGSDALE • • • EDWIN G. RAGSDALE » SECRETARY FOR YOUR ENJOYMENT . . . 315 TWENTY EIGHTH STREET DES • M OIN ES Listen to the Addressing by hand or typewriter method costs 10 times as much as the m odern Addressograph method. “ WORLD OF MUSIC” KRNT, 1350 KC 1 to 1:30 p.m. Sundays Q U A L I T Y - E X P E R I E N C E • S E R V I C E r BANKS FOB SALE Several Attractive Opportunities Now Available In Iowa and Adjoining States. Write Us Outlining Your Wants. All Negotiations Confidential. BANKERS SE R V IC E Henry II. Byers, President 1108 Register & Tribune Bldg. Addressoqraph CO. TOADS MARK OSC U S PAT Q ( E. M. Whisler, Secretary Des Moines 9, Iowa mmmt 9 O M AHA — OES MOINES DAVENPORT J V. C ity N a tio 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 .................................................. 54 C o m m e r ce T r u s t C o m p a n y ............................. 32 C o n t in e n t a l-I llin o is N a tio n a l B a n k and T r u s t C o m p a n y ................................................ 29 C o n tin e n ta l N a tio n a l B a n k — L in c o ln . . . . 57 D November, Î949 A A d d r e s s o g r a p h S a le s A g e n c y ..........................73 A lle n W a le s A d d in g M a ch in e C o r p ............16 A llie d M u tu a l C a s u a lt y C o m p a n y ................. 38 A lly n , A . C. a n d C o m p a n y .................................34 A m e r ic a n E x p r e s s F ie ld W a r e h o u s in g C o r p o r a t i o n .........................................................36 A m e r ic a n N a t io n a l B a n k a n d T r u s t C o .. .68 B B a n k o f A m e r i c a .................................................. 28 B a n k o f M o n t r e a l................................................ 26 B a n k e r s R u b b e r S t a m p ..................................... 70 B a n k e r s S e r v ic e C o m p a n y I n c ....................... 73 B a n k e r s T r u s t C o m p a n y — D e s M o in e s . . .75 B a n k s, W illia m H ., W a r e h o u s e s , I n c ..........71 C C e n tr a l H a n o v e r B a n k an d T r u s t C o ..........27 C e n tr a l N a tio n a l B a n k a n d T r u s t C o ..........14 C e n tr a l S ta te s M u tu a l I n s u r a n c e A s s n ...4 0 C h a se N a tio n a l B a n k ........................................ 7 C h e lse a H o t e l ......................................................... 66 C ity N a tio n a l B a n k a n d T r u s t C o m p a n y — C h ic a g o . ............................................................70 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D a v e n p o r t, F . E., a n d C o m p a n y . . . .5 7 -5 8 -7 0 D e L u x e C h e c k P r in te r s , I n c ..............................66 D es M o in e s B u ild in g , L o a n a n d S a v in g s A s s o c ia t io n ...................... 73 D r o v e r s N a tio n a l B a n k ..................................... 69 F F ir s t N a tio n a l B a n k — C h i c a g o .................... 4 F ir s t N a tio n a l B a n k — L i n c o l n ....................... 59 F ir s t N a tio n a l B a n k — O m a h a ..........................52 F ir s t N a tio n a l B a n k — St. J o s e p h .................57 F ir s t N a tio n a l B a n k — S io u x C i t y .................62 F ir s t W is c o n s in N a tio n a l B a n k ................... 10 F r a n k e l C lo t h in g C o m p a n y ..........................69 G G u a r a n ty T r u s t C o m p a n y ................................ 31 II H a ls e y , S tu a r t a n d Co., I n c ..............................35 H a r r is T r u s t an d S a v in g s B a n k .................64 H o m e I n s u r a n c e C o m p a n y ............................. 5 I I n t e r -S t a t e N a tio n a l B a n k .............................. 56 I o w a - D e s M o in e s N a tio n a l B a n k ................ 7 6 I o w a L it h o g r a p h in g C o m p a n y ...................... 73 I o w a M u tu a l C a s u a lty C o m p a n y ................... 38 K K o c h B r o t h e r s ............... L iv e S to c k N a tio n a l B a n k — O m a h a ............ 60 L iv e S to c k N a tio n a l B a n k — S io u x C i t y . . 46 L o n g , R . C., a n d C o m p a n y ........... ................... 34 M M a n u fa c t u r e r s T r u s t C o m p a n y . . . ...............11 M a r q u e tte N a tio n a l B a n k ................................ 65 M e rc h a n ts M u tu a l B o n d in g C o m p a n y . . . 38 M e rc h a n ts N a tio n a l B a n k ............................... 2 M in n e a p o lis -M o lin e P o w e r Im p le m e n t C o m p a n y ............................................................. 45 M in n e s o ta C o m m e r c ia l M en ’s A s s n ............. 44 M o s le r S a fe C o m p a n y ........................................ 6 N N o r th w e s t S e c u r ity N a tio n a l B a n k ............ 48 N o r th w e s t e r n N a tio n a l B a n k ..........................43 O O m a h a N a tio n a l B a n k ............................ 23 it R o y a l B a n k o f C a n a d a ....................................... 40 S St. P a u l T e rm in a l W a r e h o u s e C o m p a n y . . 8 S c a r b o r o u g h a n d C o m p a n y .................33-37-62 S to c k Y a r d s N a tio n a l B a n k — O m a h a ... 55 S to c k Y a r d s N a tio n a l B a n k — S ou th St. P a u l ..................................................................... 42 S o r e n o H o t e l ......................................................... 72 T T e n s io n E n v e lo p e C o r p o r a t io n ..................... 71 T o y N a tio n a l B a n k ..............................................71 U U n ited S ta te s N a tio n a l B a n k ..........................50 A 68 V a lle y B a n k an d T r u s t C o m p a n y . ^ .......... 67 L a M on te, G e o r g e a n d S o n ............................... 3 L a w r e n c e W a r e h o u s e C o m p a n y ................... 58 L iv e S to c k N a tio n a l B a n k — C h i c a g o .........25 W a lte r s , C h a rle s E., C o m p a n y ....................... 56 W e s te r n M u tu a l F ir e I n s u r a n c e C o ............39 W h e e lo c k an d C u m m in s .....................................35 L W N o rthw e ste rn Banker, November, 1949 74 Expectant Patient: Will I know anything when I come out of the ether? Nurse: Well, that’s expecting an aw ful lot from an anesthetic. Opportunity Goodlooking Young Man: What is home without a mother? Sweet Young Thing: I am, tonight. Need Cooperation Little Boy in Woodshed: Father, did grandpa spank you when you were a little boy? Father (with paddle): Yes, my son. Boy: And did great-grandpa spank grandpa when he was a little boy? Father: Yes, son. Boy: And did great-great-grandpa spank great-grandpa? Father: Yes. Boy: Well, don’t you think with my help you could overcome this inherited rowdyism? The Old Cut-up! A patient was pleading with a doctor that he really didn’t need an operation. “There’s nothing wrong with me,” he argued, “except that my appendix itches.” “Good,” replied the doctor, “we’ll take it right out.” “Just because it itches?” the patient gasped. “ Certainly,” the doctor boomed back, “Have to take it out before we can scratch it.” Trapped Again Clerk: Sorry, ma’am, but Mr. Gotcash has gone to lunch with his wife. Mrs. Gotcash: Well, just tell him his stenographer called. The Culprit Conductor (perplexed): But who would want to steal a Pullman ladder? Porter: I dunno, captain, but it’s gone! Little Old Lady ( p o k i n g head through curtains of upper berth): Por ter, you may use mine, if you like, T won’t need it until morning! N o rthw e ste rn Banker, November, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis No Gentlemen Naval men are chuckling over the story told recently by Vice Admiral J. G. P. Vivian of the candidate enter ing for a naval examination who was required to give, on an official form, the names of two gentlemen who had known him for “not less than three years.” His reply was: “ I have been in the Navy 14 years, and therefore I don’t know any gentlemen.” Safe Father: Who broke that chair in the parlor last night? Daughter: It just collapsed all of a sudden, Dad, but neither of us was hurt. Glassy Eyed Glasses may have an amazing ef fect on a person’s vision, especially when they have been filled and emp tied many times. Serves Him Right No. 43399: Gee, sentenced to forty years at hard labor! What did you do, murder somebody? No. 59935: No. I just parked near a fireplug, but the judge found out that I invented all the extra accessories he had to buy with his new car. Scotchogram Three brothers in Aberdeen received news that their father, living in Glas gow, was seriously ill. One of the brothers was sent to visit him, with in structions to wire after his arrival. “And r-r-remember-r-r, Jock,” said the other two brothers, “you can send nine wor-r-rds for a shilling.” Later in the day the following tele gram was sent: “Arrived. Father dead. Funeral Friday. Rangers two, Celtic one.” Small Loss Nothing is ever lost by politeness— except your seat on the bus. C O N V E N T IO N S December 1-2, 18th Annual A .B .A . Mid-Continent Trust Conference, Chicago, Drake Hotel. January 23-26, 1950, Annual Midwin ter Meeting A . I. B. Executive Council, Sea Islands, Georgia, The Cloister. May 19-20, 1950, Annual Convention, North Dakota Bankers Associ ation, Grand Forks. June 5, 6 and 7, 1950, Annual Conven tion, Illinois Bankers Association, Chicago, Hotel Sherman. June 11-16, 1950, Annual Convention American Institute of Banking, Minneapolis. Too Long! Mess Sergeant: You’re not eating your fish. Why? Soldier: Long time no sea! Turn About Is Fair Play A small retailer in a Chicago suburb had been trying for months to collect an overdue bill. But all his pleas and threats were completely disregarded. As a last resort, he sent a tear-jerking letter, accompanied by a snapshot of his little daughter. Under the picture he wrote: “ The reason I must have my money!” A prompt reply enclosed a photo of a voluptuous blonde in a bathing suit labeled: “The reason 1 can’t pay!” Alarmist! Mrs. Whoosit: Doctor, I wish you would see my husband; he blows smoke rings from his nose, and I’m terribly frightened. Psychiatrist: Well, that’s a bit un usual that he blows them from his nose, but nothing to be alarmed about; many smokers blow smoke rings by the hour. Mrs. Whoosit: I know, Doctor, but my husband doesn't smoke. Q as in Billiards He: Please give me Mr. Dillburg’s telephone number. Operator: Is that initial “B” as in William? He: No, it’s “ D” as in pickle. T HE value of a correspondent bank connection is best measured in terms of its ability to handle each phase of banking service with promptness and com petence. Such service is a basic reason for the continued development of our correspondent business. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKERS TRUST COMPANY 6th and Locust M em b er F ed era l D e p o sit Insu rance C orporation Des Moines, Iowa M em b er F ed era l R e s e r v e S ystem GRAIN DRAFTS from IOWA BANKS Serviced Promptly and A c c u r a t e l y Bumper crops are resulting in increased receipts of grain drafts routed to this Bank by correspondent Banks from all sections of Iowa. The facilities of this Bank are organized to handle a large volume of transit business promptly and accurately on the same day it is received. Iowa Banks and Bankers are relying on this Bank to a greater extent than ever before for prompt, efficient handling of drafts and other items. W e invite your business. A Strong, Dependable Correspondent Connection IOWA-DES MOINES NATIONAL BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Deposit Insurance Corporation