Full text of The Northwestern Banker : November 1953, 58th Year, No. 796

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How Banks Help
Farmers With Farm
Service Programs
— Pages 15, 16, 17

The Nebraska
Bankers Convention
— Page 67

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Federal Reserve Bank of St. Louis

BUSINESS AND GOVERNMENT LEADERS COMPARE NOTES— Page 7

READY TO SERVE YOU

OFFICERS
James E. H amilton

Chairman E xecutive Committee

S. E. Coquillette

“In the Land o f the

Chairman of the Board
J ohn

H a m il t o n

President
F red W .

II,

S m it h ,

Vice President

Gold that Grows” *

R e g in a l d B. F igge ,

Vice President
M a r v in

Seld en ,

Vice President
R.

Manatt,

Vice President
L . W . B r o u l ik

Vice President
S. J . M o h r b a c h e r ,

Vice President
J . E. C o q u il l e t t e ,

Iowa’s gleaming harvest will soon be speeding to

Vice President
E verett C. P r a t t ,

Cashier

the far corners of the earth . . .

a heart-warming,

nourishing ambassador from the “ breadbasket of the
world.”

Cedar Rapids, where thousands of cars of

grain are processed each year, is the grain capital
of the world. Since 1881 The Merchants National

C. F . P e r e m s k y ,

Asst. Cashier
V ictor W . B r y a n t ,

Asst. Cashier
A. E. L in d q u is t , J r .,
A s s t. Cashier
N . J. D autrem ont,
A s s t. Cashier
R obert A . H a h n ,
A s s t. Cashier
W . F. V om acka,

Asst. Cashier

TRUST DEPARTM EN T
G eorge F . M ille r ,

Bank has been serving the middle west. An account

Vice President
R. D. B r o w n ,

Trust Officer

here guarantees you prompt and accurate service on

O. A . K e a r n e y ,

Trust Officer

R u ss e l l I . H e s s ,

all your grain drafts and other items.

Utilize our

Trust Officer

nationwide service with all major grain markets from
the grain center of the world.

*The Courtesy of Iowa Development Commission

THE

Merchants National
Bank
OF CEDAR RAPIDS, IOWA

N o. 796. N orthw estern Banker, published m onthly by the N orthw estern Banker Com pany, at 527 Seventh Street, Des Moines, Iow a. Subscription,
35c per copy, $3.00 per year. Entered as Second Class M atter January 1, 1895, at the P ost Office at Des Moines, Iowa, under A ct o f M arch 3, 1879.

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Federal Reserve Bank of St. Louis

A BRIGHTER VIEW
FROM HIS POSITION
T ry his s p o t— pu t y ou rself in you r b o r
row er’ s p o s itio n — then

y o u ’ll see w h y

N orth C en tral’s P rotected L oan Plan can
m ean so m uch to him.

I f he has an

accid en t, gets sick or should die, N orth
Central takes care o f his lo a n . . . k now ing
h e’s p rotected brings real peace o f m ind.
G e ttin g

b a ck

your

greatest risk, death

p o s itio n — y o u r

or disability o f a

borrow er, is elim inated.

E v e ry ty p e and

size o f loan can be covered . . . the
plan is specially designed for you r
needs assuring the v e ry m inim um
o f operational care.
P ro te cte d

L oans

F urtherm ore,

are

a b ou t

the

finest p u b lic relations you r bank
can have.
F or com p lete in form ation
N orth

C en tral’s P rotected

a bou t
L oan

P lan, write, wire or p h on e: C redit
Insurance D ivision . A representa
tiv e will be at y ou r desk at you r
con ven ien ce.

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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, November, 1953

TMt MOSiCK SAFE iOMPANY’

.........H

N EW M O S L E R E L E C T R IC
DRIVE-IN W INDOW is fu lly
automatic, operates with sim
ple “ push button.”

New Symbol o f the M odem Bank

the

new

MOSLER CENTURY 10

bank

Mosler beauty is functional beauty in this magnificent, modem bank
vault door. The design is the combined work of famed industrial designer
Henry Dreyfuss and Mosler engineers. No detail was overlooked to make
its ease of operation and security as outstanding as its appearance. In
corporated are all the virtually impregnable protective features that have
made Mosler the overwhelming choice of leading banks the world over.

Digitized forNort
FRASER
hwest ern Banker, November, 1953
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Federal Reserve Bank of St. Louis

vault

door

'"S

YO U ’RE LOOKING AT the substance of America's bold,

new concept of tomorrow in banking . . .

M odern Ideas
. . . developed under M osler leadership to bring your ow n
bright, forw ard-looking vision o f the m odern bank to full
reality. Ideas that introduce not only a new kind o f
glistening, functional beauty . . . but a new kind o f
“ super service” that will help you bring in new accounts.

NEW M O S L E R “ S N O R K E L ”
CURB TELLER makes drive-in

b an king service p ossib le
“ right downtown.”

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M O SLE R D U A L N IG H T D E

N EW M O S L E R T E L L E R ’ S

P O SITO R IES h elp b a n k in g
establishments stay “ open for
business” around the clock.

C O U N T E R U N I T S and
“ Swing-Way” Seats combine
to reduce teller fatigue, in
crease overall efficiency.

M O DERN REV O -FILE g i v e s
bank clerks and tellers finger
tip control over thousands of
cards.

THE CO M PLETE LINE of Mos
ler Record Safes includes
Ledger Desk Safes, which
protect signature and credit
cards where they’ re used.

IF IT ’S M O SLER . . . I T ’S SA FE

•* M osler Safe fzir
World's largest builders o f safes and bank vaults . . . M osler built the JJ. S. Gold Storage
Vaults at Fort Knox and the famous bank vaults that withstood the Atomic Bomb at Hiroshima

Northwestern Banker, November, 1953

4ent Bam,

Centrally located in the financial heart of the
Southwest . . . offering every correspondent banking
service . . . serving in Texas alone the majority
o f the state’ s 900 hanks . . . R e p u b lic is truly the
“ B a n k er's Bank"’ o f the Southwest.

Capital and Surplus $ 5 0 , 0 0 0 , 0 0 0 . 0 0

•

Largest in the South

NATIONAL BANK
OF DALLAS
V
MEMBER

Nort hwest ern Banker, November, 1953

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Federal Reserve Bank of St. Louis

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

ON THE COVER
Three of the prominent speakers ad
dressing the 67th annual convention
of the Iowa Bankers Association in
Des Moines last month are pictured
on the front cover of this issue of the
N

orth w estern

anker.

Left to right are: G. Keith Funston.
president, New York Stock Exchange;
Dr. You Chan Yang, South Korean
Ambassador to the United States, and
James Q. du Pont, administrative as
sistant, E. I. du Pont de Nemours &
Company, Inc., Wilmington, Delaware.
For complete report and additional
pictures of the Iowa convention turn
to page 85.

Peter F. Bailey
Peter F. Bailey, vice president of
the Merchants National Bank of Ce
dar Rapids, died last month at the
age of 67.
Mr. Bailey was attending the IowaIndiana football game when he had a
heart attack and died at the hospital
a few hours later.
His son, John P. Bailey, a freshman
at the University of Iowa, was in the
grandstand at the time his father
died.
Peter Bailey started his banking
career with the Cedar Rapids National
Bank in 1909 and became associated
with the Merchants National Bank in
1931 when the two banks were con
solidated.
In addition to his son he is also
survived by his wife.

A Deposit Record
There is a record mid-year deposit
of over 193 billion dollars in the na
tion’s banks, according to tabulations
completed by R. L. Polk & Company,
as the 118th edition of Polk’s Bank
Directory rolled off the press in midSeptember.
Thousands of copies of this massive
2,900 page directory of international
banking will be mailed to subscribers
in all corners of the globe. The cur
rent 118th edition reports the latest
statement figures, executive informa
tion and other pertinent data for every
bank known to exist in the world.
Deposit gains recorded for June 30,
1953, reflect a continued upward trend
all over the country.
Here are the dollar totals as com
piled by Polk. Banks declared $212,431,714,102 in total assets. Last June’s
figure was $204,951,469,498. Capital ac
counts rose to $16,424,623,572 as pre
viously mentioned, a gain of over $7
billion. Total deposits were listed at
$193,336,375,481, in comparison with
the $187,119,398,244 reported at mid
year 1952.

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DES M O I N E S
Oldest Financial Journal West of the Mississippi
58th Y ear

N o. 7 9 6

IN THIS NOVEMBER, 1953, ISSUE
EDITORIALS
Across the Desk from the Publisher............................... ............. ........10, 11

FEATURE ARTICLES
On the Cover............. ......................... .......................
7
Frontispage .....................................................................................
73
How Banks Help Farmers With Farm Service Programs...............
.......................................... A N or th w ester n B a n k e r Survey 15,16,17
Charge Plans Are Simplified by Machine Processing..Robert Renner 18
How We Modernized Our Statement and Ledger Sheets......................
....................................................................................... C. W. Fishbaugh 19
Banker’s Job Is to Tell and Sell................................ ....Clifford DePuy 20
Our Chicken Loans Are Big Business................................ Shelby Ford 21
News and Views o f the Banking W orld........................Ben Haller, Jr. 22
Bankers You Know— William H. McDonald.......................................... 24

BONDS AND INVESTMENTS
Administration Making Progress Toward a Balanced Budget...........
.......... —-..................-...........- - -......................Raymond Trigger 43

INSURANCE
Do Americans Want Lower Insurance Rates?........... John W. Gunn 47

STATE BANKING NEWS
Minnesota News ........
55
Twin City News..................................................................................... 56
South Dakota News..................................................................................... 59
Sioux Falls News.................
59
North Dakota News....... ............................................................................ 63
Montana News .............................................................................................. 64
Nebraska News ......................
67
Nebraska Convention Program........ .................
67
Meet Your Omaha Hosts at the Coming 56th Nebraska
Convention _______ __________ _______ ________ ____ _____ _____ 70, 71
Discuss Agricultural Credit............................................................... 72
Omaha News .............................................
74
Lincoln News ....................................................................................... 79
See Them in Omaha at the 56th Nebraska Convention............. .. 81
Iowa News .................................................................................................... 85
New High of 3,057 Persons Recorded at Iowa Convention......... 85
In the Directors’ Room..................................................................................101
Conventions .................................................................................................... 101
Is Waiver o f Notice Legal When Selling Chattel A fter Default?
— Legal Questions and Answers.... .................................
102
NORTHWESTERN BANKER
527 S eventh S t ., Des Moines 9, Io w a , Telephone 4-8163

CLIFFORD DE PUT

RALPH W . MOORHEAD

P u b lis h e r

A s s o s c ia t e P u b lis h e r

HENRy H. HAyNES

BEN J. HALLER, JR.

E d it o r

M a n a g in g E d it o r

A d v e r t i s i n g D ir e c t o r

ELIZABETH COLE

ANNE WALLIN

MARy LOU MURPHy

A d v e rtis in g

A s s is ta n t

PAUL W. SHOOLL
F ie ld

R e p r e s e n t a t iv e

MALCOLM K. FREELAND

A u d it o r

C ir c u la tio n D e p a rtm e n t

A. M. LEMIEUX
F ie ld

AL KERBEL

R e p r e s e n t a t iv e

F ie ld

R e p r e s e n t a t iv e

NEW yORK OFFICE
Frank P . S ym s, V ice P re sid e n t, 505 F ifth A v e .,

S u ite

1806

M U rray H ill 2-0326

DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review,
Iowa-Nebraska Bank Directory
Nort hwest ern Banker, November, 1953

Kennedy to Washington
Treasury Secretary Humphrey has
appointed David M. Kennedy, 48, of
Chicago, Illinois, as assistant to the
secretary.
Secretary Humphrey said that Mr.
Kennedy will assist and advise Deputy
to the Secretary W. Randolph Burgess

«■■S Hii i n ¡¡
■ H iî“ Sl

D A V I D M. K E N N E D Y
R eceives appointm ent

Venn' representadle
on the scene
L ocated in New Y ork City, the
forem ost financial and com m ercial
capital . . . with branch offices in Europe
and correspondents throughout the
w orld . . . Guaranty Trust Company has
the experience and facilities to
render prompt, efficient service to
correspondent banks.

Guaranty
Trust Company
at Mew York
Capital Funds $380,000,000
140 Broadway, New Y ork 15
Fifth Ave. at 44th St.
New York 36

Madison Ave. at 60th St.
New York 21

Rockefeller Plaza at 50th St., New York 20
LONDON: 32 Lombard St., E.C. 3 • Bush House, Aldwych, W.C. 2
PARIS: 4 Place de la Concorde BRUSSELS: 2 7 Avenue des Arts
Member Federal Deposit Insurance Corporation

Northwestern Banker, November, 1953

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Federal Reserve Bank of St. Louis

in Treasury financing and debt man
agement.
At the time of his appointment Mr.
Kennedy was a vice president in the
bond department of the Continental
Illinois National Bank and Trust Com
pany of Chicago, with which institu
tion he was connected since 1946. Mr.
Kennedy will have offices at the Treas
ury Department in Washington and
the Federal Reserve Bank in Chicago.
In April, 1930, Mr. Kennedy joined
the Board of Governors of the Federal
Reserve System and served in various
capacities, including technical assist
ant in the Division of Bank Opera
tions and assistant chief for research
in government finance in the Division
of Research and Statistics. He also
served as special assistant to the chair
man of the Board of Governors of the
Federal Reserve System.

First Autoramp
A six-story parking facility, striking
ly similar to the modernistic First
National Bank and Trust Company of
Tulsa, will be built for the bank just
one block away from the bank build
ing in downtown Tulsa.
Ground-breaking for the $450,000
“ First Autoramp” was held in midSeptember, and the structure is ex
pected to be completed by the first of
the year.

S T A T E M E N T OF C O N D I T I O
0N

AND

A D V IS O R Y

D IR EC TO R S

N ATH AN ADAM S
HONORARY CHAIRMAN
OF THE BOARD
G E O . N . A LD R ED G E
CHAIRMAN
EXECUTIVE COMMITTEE

At the Close of Business September 3 0, 1 95 3

A . H . B A IL E Y
PRESIDENT
HIGGINBOTHAM-BAILEY CO.

ASSETS
United States Government O bligations....................................
Public Housing Authority Obligations (Fully Guaranteed)
State, County and Municipal B o n d s ...........................................
Stock in Federal Reserve B a n k .................................................
Other Bonds
...............................................................................
Loans and D i s c o u n t s ..................................................................
Income A c c r u e d .........................................................................
Letters o f Credit and A c c e p t a n c e s ...........................................
Banking House and E q u ip m en t.................................................
Other A s s e t s ...............................................................................

$187,797,754.02
108,733,626.15
11,492.686.11
13,704.080.33
900,000.00
2 ,557,237.39
198,671,937.97
1,550,084.60
1,179,979.04
6 ,803,205.89
49.457.39

H EN R Y C. C O K E , JR .
COKE & COKE
ATTORNEYS
RO SSER J . CO KE
COKE & COKE
ATTORNEYS

J . T . E L L IO T T
ELLIOTT LUMBER CO.
E A R L F A IN
INVESTMENTS
E D G A R L . F L IP P E N
CHAIRMAN OF THE BOARD
M . 1. FR E E D M A N
INVESTMENTS
W . A . G REEN , JR .
PRESIDENT
W . A. GREEN COMPANY
T . E. J A C K S O N
SOUTHWESTERN MANAGER
PITTSBURGH PLATE GLASS
COMPANY

LIABILITIES
Capital S t o c k ................................................S 15.000.000.00
Surplus F u n d ...........................................
15,000,000.00
Undivided P r o f i t s .....................................
4 ,6 19 ,0 1 3 .6 4
Reserved for C o n tin g e n c ie s .......................................................
Reserved for Taxes, Etc................................................................
Deferred I n c o m e .........................................................................
Letters o f Credit and A c c e p ta n c e s ...........................................
DEPOSITS:
I n d i v i d u a l ........................................... 3 2 3,934,016.42
B a n k s .................................................
154,929,166.47
U. S. G o v ern m en t...............................
11,973,641.81

C A R R P . C O L L IN S
CHAIRMAN OF THE BOARD
FIDELITY UNION LIFE
INSURANCE CO.
E. D eG O LYER
DeGOLYER & MacNAUGHTON

$ 5 3 3,440,048.89

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Federal Reserve Bank of St. Louis

D IR EC TO R S

ER N E S T L . K U R T H
PRESIDENT
SOUTHLAND PAPER MILLS
LUFKIN, TEXAS

S 34,619,013.64
3,026.059.84
3,431.968.73
346,202.94
1,179,979.04

C . L . M A IL L O T
PROPERTY MANAGEMENT
AND INVESTMENTS
W . B. M ARSH
MANAGER
HARRIS-LIPSITZ INTERESTS
EUGEN E M cELV A N EY
SENIOR VIC E PRESIDENT
H A R R Y S . M OSS
INDEPENDENT OIL OPERATOR
W m . F. N E A L E
PRESIDENT
Wm. F. NEALE & CO.

S 490.836.824.70

J . B. O ’H ARA
CHAIRMAN OF THE BOARD
DR. PEPPER CO.

$533,4 4 0 ,0 4 8.8 9

H YM A N PEA R LSTO N E
PRESIDENT
HIGGINBOTHAM-PEARLSTONE
HARDWARE CO.
W . L . P R EH N
GENERAL MANAGER
SOUTHWESTERN BELL
TELEPHONE CO.
J . FR ED S C H O E L L K O P F , J R .
PRESIDENT
THE SCHOELLKOPF CO.

A growing bank

E. E. S H E LT O N
PRESIDENT
DALLAS FEDERAL SAVINGS &
LOAN ASSOCIATION

sells itself

R. H. S TEW A RT, JR .
MANAGER
GRAHAM PAPER CO.

in terms of

A RCH S. U N D ER W O O D
PRESIDENT
UNION COMPRESS &
WAREHOUSE CO.
LUBBOCK, TEXAS

expanding usefulness.

JA M ES RA LPH W O O D
PRESIDENT
SOÙTHWESTERN LIFE
INSURANCE CO.

7i/o
PRESIDENT

#■ i
*1*

78th y e a r o f d e p e n d a b le co rre sp o n d e n t se rv ice

M EM BER

FEDERAL

DEPOSIT

IN S U RA N C E

CO R P O R A T IO N

Northwestern Banker, November, 1953

f r o

s s

t l i e

e s k

From I lie P u b lish e r
OSsjoUi, (b it,, 'btfudm v (x). W xJU nlsL^ :
Economist, Prudential L ife Insurance Company,
Newark, New Jersey.

In your recent speech on the Business Outlook
for 1954, you predicted that there would be no
recession and you based your reasoning on at least
four facts which were these :
1. Government purchases will still provide
strong impetus to the economy.
2. Purchases by consumers will increase, be
cause of rising hourly wage rates.
3. Consumer spending will increase from $235
billion, our present rate, to about $242 bil
lion in 1954.
4. State and local spending will rise, and more
than absorb the decline of about $2 billion in
federal expenditures for 1954.
Most of the bankers at the American Bankers
Convention were likewise much more optimistic
than they were pessimistic about 1954.
Your belief in a “ better tomorrow” is also voiced
by W. Randolph Burgess, Deputy Secretary of the
Treasury, who believes there are at least three
good reasons why we can make any needed adjust
ments in our economy without disastrous results.
“ First, this country, even when we achieve a
balanced budget, will be pursuing a tremendous
spending program for defense. Even though the
expenditures are met by taxes, the program is an
Digitized for Northwestern
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Banker, November, 1953
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Federal Reserve Bank of St. Louis

inflationary force which will be with us for some
time to come.
“ Second, we have almost startling evidence from
Europe of countries which have turned from infla
tion to prosperity by putting into effect vigorous
programs for sound money.
“ Third, we have the long history of economic
progress of this country. It is free competitive
enterprise that has made us great. As we move
away from controls and subsidies and artificial
props and gradually reduce taxes, we release more
fully the forces that brought us prosperity in the
past. As we strengthen the dollar and renew peo
ple’s confidence in it, we stimulate the flow of
savings which has always provided the capital to
build America. Surely we are not afraid of these
great, free forces.”
As one economist said recently, if we do have a
recession it will be the most advertised one in our
history.
With our present a d m in istra tion ready to
pounce on the first sign of a slowing down of busi
ness, and with bankers pledged to do their share
to finance all of the legitimate demands in their
local communities, the N o r t h w e s t e r n B a n k e r
looks as you do, Dr. McKinley, and as does Mr.
Burgess, hopefully into 1954 which we believe will
be a year where inflation and deflation do not go
to either extremes, but where a more nearly bal
anced national budget will be established, and
business generally will be able to proceed on a
more even keel.

Û )q jc ü l (x) . 9 L . (B A s m io ti.:
Retiring President, American Bankers Association,
Des Moines.

Some one has said “There is no substitute for
knowledge” and this certainly applies to the bank
ing business today, more than ever before.
This was a point which you made in your fare
well address before the American Bankers Associ
ation annual convention.
As you put it, “ It is imperative that the officers
of our small banks as well as our large ones sup
plement their local viewpoint with information on
our national economic problems. There are al
ready a number of small banks where the manag
ing officer conducts regular planned staff meetings
with studies and discussions regarding the func
tioning of money.
“Many bankers realize that bank tellers and con
tact men must not be overlooked in their training.
They are not only potential officer material, but
they are already ‘the banker’ to many of the cus
tomers. Their comments on topics of the day carry
weight, and their banking education should pro
vide them with factual and useful information.
With such a program to stimulate them, more

11
young- men with aptitude than ever before will be
attracted to our banks.
“ Young men often ask: ‘Is there a future in
banking?’ My answer is: ‘The future is excellent
for the man with financial aptitude who is willing
to work and prepare himself.’ Bankers in all parts
of this country have told me of the widespread
need for more young men of this type. This all
adds up to the fact that there must be more trained
men for our financial institutions—men with an
adequate understanding of banker-economics.”
The only way we are going to get more trained
men is to continue the very fine banking schools
which have been started over the country, and
which are increasing in number from year to year.
Likewise, the American Institue of Banking,
which offers courses by chapter meetings in the
larger cities, and by correspondence courses for
those in the smaller cities, must be encouraged.
The ultimate answer is for every bank officer as
well as bank employee to get as much increased
knowledge as possible, both about banking and,
as you say, about “ Our National Economic Prob
lems.”
After being criticized and abused during the
past 20 years, bankers have at last regained their
rightful position and stature in the nation, and the
only way to hold that position and to increase their
value to the community is by acquiring more
knowledge about the business in which they are
engaged, plus additional information about the
problems which face our national welfare.
Knowledge is power.

(D su ctiv (D a .. ¿ W i t

JL.

Department of Agricultural Economics,
Purdue University, L afayette, Indiana.

Are we losing the pioneer spirit in America?
That is the question which you discussed in a
recent address before a bankers convention.
If we have changed our philosophy (and there
are some who have) from how much can we do, to
how little can we do, then America will eventually
pass out of the picture as Rome has done, and they
will simply read about us in the history books of
some future generation.
The N o r t h w e s t e r n B a n k e r does not believe
that we have lost our pioneer spirit to make Amer
ica great, but we do believe that any philosophy,
whether it comes from labor unions or from the
Chamber of Commerce, which believes that we can
produce less goods, and perform less services dur
ing shorter hours, and for more money, will cause
us to eventually become a “lost nation.”
We do believe in shorter hours, and more pay,
but during those shorter hours and for that addi
tional pay more goods must be produced or more

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service must be rendered if our economics are to
continue on a sound basis.
As you put it, Dr. Butz, “During the days ahead,
we must all revitalize in ourselves that pioneer
spirit which made America a great nation, but
which has been in conflict in recent years with an
other philosophy.
“ Our forefathers in America, who opened the in
land waters to navigation, who turned the sods of
the prairie, who pushed the ribbons of steel across
our plains to link two great shores in a transporta
tion system, who dug the gold from the hills of
California and the copper from the buttes of Mon
tana—those men lived by a philosophy of work
and production. That was their creed. They
asked, ‘How much can T do? How fast can I run?
How deep can I dig?’
“Today in America there are too many people
who ask, ‘How little can I do? How slow can I
run? How shallow can I dig?’
“ The former philosophy carved a great nation
out of the wilderness in a little over a century;
the latter philosophy works on the side of the com
munist world. It must be uprooted from our midst.
“ We are so strong and our production potential
in America is so great that we can never be de
stroyed from without unless we first disintegrate
and deteriorate from within.”
So we would say to bankers and businessmen
everywhere, we believe you will continue to assist
in improving our “ production potential” so that
we may assume our place not as the leading nation
in this hemisphere, but as the leading nation of
the world.

(D&w l lûaUacsL J. (Bsm m lL:
United States Senator from Utah.

For many months the N o r t h w e s t e r n B a n k e r
has advocated the abolishing of the Reconstruc
tion Finance Corporation, and legislation for that
purpose has now been enacted.
As you very ably expressed it, Senator Bennett,
“We all agree that there is no permanent substi
tute for equity capital, but the habits and attitudes
of 20 years can’t be eradicated in a day.”
As we have remarked many times, if a loan is
sound and good it should be made by local banks
in the community, and if it is not sound and good
it should not be made by a government agency, the
losses of which agency must eventually be borne
by the taxpayers.

Nort hwest ern Banker, November, 19S3

Banker, November,

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

High on

our

listof

the things we have
to be thankful fo r...
is the large and
ever-growing list of
CORRESPONDENT ACCOUNTS
it is our privilege and
pleasure to serve.

focaad "pTtettedtf, 'S cut&

CENTRAL NATIONAL BANK
and Trust Com pany
DES

MOI NES, IOWA

Nort hwest ern Banker, November, 7953

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

ìV-,

“ One of the most remarkable things about
our National 135 machines is the fact that they
have reduced operator training time to a matter
of minutes,” reports Mr. Scott. “ They are clear
ly the answer to the operator training problem.”

With the

Unit Pian we train
operators in minutes!”
W illia m Ml. S c o t t , P r e s id e n t

T h e P e n n s y lv a n ia E x c h a n g e B a n k
N ew Y o r k , N. Y .

Here in the branch office of the Pennsylvania
Exchange Bank opposite Rockefeller Plaza,
President Scott reports, “ We find the National Unit
Plan tremendously helpful in saving time and money
and effort. Eight important steps are performed
automatically when the statement-ledger is placed
on the automatic printing table of our National 135’s.
And we like the way they post statement-ledgers and
journals simultaneously, all in original print.”
Mr. Scott adds that the National Unit Plan produces
“ the neatest statement and ledger I’ve ever seen!”

How much money will the National Unit Plan save you in your bank?
Call your nearby National representative today and find out. He’s a systems
analyst who will gladly demonstrate the National Unit System to you. Just
call him, or write to us at Dayton 9, Ohio.

C /fcafional
ACCOUNTING MACHINES
ADDING MACHINES • CASH REGISTERS

THE NATIONAL CASH REGISTER COMPANY,

Northwestern
Banker, November, 1953
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

D a y to n 9 , O hio

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

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

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

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

.... c

H o ir
Farm

Hanks H elp
Service

P ro

Loans, Financial Advice and Cooperation on All
Projects Are Establishing Better Farmer-Banker Relations
A NORTHWESTERN BANKER
Survey

ITH agricu ltu re con tin u in g to
occu p y a strategic position in
our n ation al econ om y, and also
in relation to our g ro w in g population,
th e N orthwestern B anker th o u g h t it
w ou ld be w e ll to see h ow local b a n k
ers are cooperatin g w ith th eir fa rm er

is accomplished through our custom
ers, encouraging and helping them to
improve their production practices.
We have sponsored some soil testing
in cooperation with the Nebraska Con
servation Foundation, Inc.”

cu stom ers.

C. A. Phillips, president, Cambridge
State Bank, Cambridge, Nebraska:
“ Our specialty has been CCC loans
and a payment plan on farm equip
ment. I was state appointed super
visor for organization of Chaeo Soil
Conservation District 10 years ago and
still serving. Was one of promoters
of the Frenchman-Cambridge Irriga
tion District, have been a director for
six years and still treasurer.”

This survey disclosed that the vast
majority of banks in the midwest take
a deep interest in all activities relating
to farming and spend a great deal of
time and money in promoting them
for the welfare of the community.
One evidence of this is the increasing
number of banks who are appointing
a farm specialist to the staff.
The various state bankers associa
tions have done much for many years
through their agricultural committees,
thus encouraging individual banks to
participate at a local level in the ad
vancement of farming practices. The
following replies to this special sur
vey tell some of the specific things
that banks are doing. The bank offi
cer whose name is listed is in charge
of farm operations:

I. E. Tilgner, cashier, Jefferson
County Bank, Daykin, Nebraska: “Our
bank has been trying to cooperate
with our farmers in every possible
manner.
“ This year we have been primarily
interested in establishing a soil build

ing program. Gerald Stahl of the Ne
braska Soil Conservation Foundation
has made a number of soil tests in
our community and at the same time
he takes a cropping history of the
farm. When the results of these tests
are received from the University of
Nebraska, along with their recommen
dations, Mr. Stahl briefs the group on
the basic fundamentals of soil build
ing, after which a general discussion
takes place. The bank serves a lunch
at the close of the meeting. We try
to keep these meetings small, six to
15 people, so that all may enter into
the discussion.
“We have also sponsored other farm
meetings. Recently we sponsored a
meeting at which agronomists from
the University of Nebraska reviewed
the results of the wheat test plots near
our town.
“Wherever it is possible we are try
ing to work with our county agent
and with 4-H groups. We feel that if
they call on us for help, it is an oppor-

N ebra sk a
Fred W. Kerst, president, City Na
tional Bank, Crete, Nebraska: “ This
bank has done nothing specific any
more than to properly finance any
farmer, to help start young farmers,
and to properly start herds of young
stock.
“ In soil work we have done nothing
except to finance where needed for
extra fertilizer, to help with terracing
costs and similar activities.”
Robert L. Voss, vice president, First
National Bank, Fremont, Nebraska:
“We work with our Soil Conservation
Districts and Extension Service in this
area on their programs. We make
loans to farmers for improved prac
tices and to 4-H Club and FFA mem
bers for their projects.
“Work on soil conservation is most
ly channeled through programs of
government agencies. Individual work

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

PERSONAL VISITS to farms are the surest way to keep in close touch with farmer
customers, their needs and to get their ideas on new projects. An increasing number of
banks have appointed a full-time outside farm representative who handles farm busi
ness, including processing of farm loan applications.
Northwestern Banker, November, 1953

16
tunity for the bank to serve the com
munity and itself.”

Bureau meetings as a member and
attend extension service demonstra
tions. We also make loans available
H.
E. Roe, executive vice president,for conservation improvements on the
Bank of Bennington, Bennington, Ne farm and for commercial fertilizer.”
braska: “We make personal visits to
the farmer’s home. When we hold
F. H. Riepe, cashier, Danville State
open house at the bank a man from Savings Bank, Danville, Iowa: “We
the soil conservation office is present belong to the Cattle Feeders Associa
and also our county agent. We show tion of Des Moines County, Iowa, and
charts and pictures of what soil con work with them during the year and
servation will do, followed by a ques finance the cattle feeders that need
tion and answer period.”
financing. We do anything that we
believe will help the farmer.
“We have cooperated with the Soil
John J. Adkins, cashier, Battle
Creek State Bank, Battle Creek, Ne Conservation in every way and be
braska: “For the past three years lieve it a very good thing.
“Any farmer who is entitled to credit
our bank has sponsored an Annual
Farm Forum. This is an evening can get it at our bank, especially the
meeting, with the bank furnishing the young farmer who is just starting.”
entire program. The meeting usually
has two speakers and one movie.
These are timely topics for the farmer,
such as soil conservation, the use of
fertilizer, the feeding of corn cobs,
farmer’s legal papers, etc. Refresh
ments are served following these
meetings.
“ This bank is a member of the Ne
braska Conservation Foundation and
at the present time is cooperating
with the field representative in taking
soil samples and discussing the farm
er’s conservation program with him
on his own farm.”
John Stuclilik, vice president, The
Farmers State Bank, Aurora, Nebras
ka: “For the year 1953 we are fi
nancially backing an FFA program
through the vocational agriculture in
structor, which is emphasizing the
breeding of lean hogs, fertilization,
soil conservation and profitable potato
raising in this area.
“ Soil c o n s e r v a tio n is promoted
through distribution of pamphlets.
Soil sampling kits are made available
and forwarded by this bank to the
Department of Agriculture at the Uni
versity of Nebraska. We encourage
fertilization and make extensive loans
on this project.”
F. G. Stilgebouer, president, State
Bank, Benkelman, Nebraska: “ Some
years we have paid for subscriptions
to 4-H News in every home where
there is a member or leader. In re
gard to soil conservation we are work
ing with our county agent and our
customers for the best type of farm
ing and the use of fertilizers on the
land.”

Io w a
Noel J. Liechty, vice president, Ank

eny State Bank, Ankeny, Iowa: “ In
our bank we make country calls to
the farmer’s homestead, attend Farm

Northwestern
Banker, November, 1953
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ONE PROJECT carried out by many
banks is sponsorship of a field day, includ
ing free luncheon. Above is part of group
enjoying watermelon provided by Bank of
Steinauer, Steinauer, Nebraska, at bank’s
Conservation Field Day last year.

J. P. Fed lie, vice president, HartfordCarlisle Savings Bank, Carlisle, Iowa:
“ Our bank sponsored a corn and soy
bean yield contest. We have done
4-H Club promotion work and we pub
lish a farm paper covering local activi
ties.”
Mortimer Goodwin, president, Union
Story Trust and Savings Bank, Ames,
Iowa: “What we have done to im
prove our relations with our farmer
customers took place many months
ago. The plan worked out very well,
however. We arranged an income tax
clinic for farmers early last January,
at a time which was far enough in
advance of the filing dates for federal
income tax returns so that they could
take advantage of any suggestions be
fore making out their return. We in
vited Professor H. B. Howell of the
Agricultural Economics Department
of Iowa State College, Ames, to con
duct the clinic, and he was assisted
by two representatives from the office
of the Collector of Internal Revenue
in Des Moines.

“ The farmers were invited to an
evening meeting in Ames and after it
was over we served them coffee and
doughnuts.
“ The clinic was designed to bring
out ways to avoid paying out unneces
sary amounts in taxes. The basic plan
seemed to appeal to the revenue men,
and they were helpful with sugges
tions. Professor Howell has had a
great deal of experience in the farm
accounting field and is a close student
of income tax matters as they affect
farmers, and his presentation was
good.
“ Prior to the meeting we invited
the farmers to submit questions which
they would like to have discussed, and
we screened them to get the most im
portant ones for the question and an
swer period which followed Professor
Howell’s main address. This was a
very popular feature of the clinic.
“This has rambled on perhaps too
long, but it may give you some idea
of what we did. As a matter of fact,
we also set up an income tax clinic
about a month later for people other
than farmers, and were gratified at
the response. Over 500 people at
tended the two meetings.
"We also provide our farmers with
work-sheet forms in the late fall for
their use in preparing their income
tax returns. These seem to be well
received.
“We plan to make these clinics an
annual affair.”
Lee Chandler, president, Iowa Sav
ings Bank, Dike, Iowa: “ In coopera
tion with other banks in the county
and in conjunction with the County
Extension Service, we co-sponsored an
all-day Farm Management Clinic, serv
ing all in attendance luncheon at noon.
In this connection, I spoke on the sub
ject ‘How to Use Bank Credit.’ We
also advertise for and carry all loans
offered us to finance 4-H Club projects.
Frequently our staff attends 4-H meet
ings and we speak on credit and book
keeping methods.
“ In cooperation with other banks in
our county we have financed publica
tion of a booklet for the County Soil
Conservation Committee, explaining
their work here and the advantages to
be gained by full cooperation.”
G. L. Kimberley, cashier, Exchange
State Bank, Collins, Iowa: “We oper
ate a farm labor service (employment
agency) for farmers. We also do fi
nancing for 4-H Club calf projects and
FFA work. Our bank makes commer
cial fertilizer loans; makes soil testing
kit available to farmers, and provides
publications and books for our farm
ers.”

BEEF AND D A IR Y CATTLE are the source of much of the income in the midwest, consequently banks lend a great deal of
cooperation to the various organizations and projects designed to improve this part of the farmer’ s business.

S ou th D a k o ta
(). A. Hodson, president, Blackpipe
State Bank. Martin, South Dakota:
“ Our bank participates actively in 4-H
Club work and has an officer as direc
tor of the local REA board. We spon
sor an annual calendar picture con
test, with the winner announced at
the annual free Pancake Day Feed,
in which we take an active part.
“ Soil conservation and increased fer
tility program is just in its infancy
here.”
Arthur J. Owens, cashier, the Onida

Bank, Onida, South Dakota: “We em
ploy a full time farm and ranch fieldman. This man does not work from
an office but is rather a practical
ranch operator who owns and operates
a large ranch in this community.
“ Soil conservation activities are
taken care of by the state college at
Brookings.”
vice president and
cashier, First State Bank, Roscoe,
South Dakota: “ Our bank loans addi
tional money to farmers for purchase
of better milk cows, hogs and chickens
and other poultry. For this area we
advise more dairying and less small
grain farming.
“We handle about 75 units and insist
on one-third fallowing and encourage
operators to sow more alfalfa and
sweet clover. Fallowed lands have
paid big dividends in the past two
years.”
W.

Christen,

M. G. Slaathaug, president, Peoples
State Bank. Summit, South Dakota:
“We urge the use of fertilizer, weed
spray and so forth and offer financing
for these purposes. We also urge im
provement of livestock quality and

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

will finance the purchase of herd sires
and females. This bank also provides
public hall facilities for farm meet
ings.
“Our advertising is designed with a
soil conservation motif and along this
same line we provide funds for the
publication of the Roberts County Soil
Conservation District reports. In meet
ings of our local bank group to work
out ways in which we can better assist
farmers we include the county agent
and SCS man.”

M in n e s o ta
H. C. Feig, president. Farmers State
Bank, Raymond, Minnesota: “ Our
bank hands out pamphlets, our men
attend local Farm Bureau meetings
and we give especial help with 4-H
activities.
“We have an active county agent
who is continuously on the job. Our
bank encourages loans for farm im
provements and fertilizers.”
W. I). Yaeger, cashier, Sanborn State
Bank, Sanborn, Minnesota: “ Our bank
participates in FFA and 4-H Club
activities, financially and otherwise.
“We advise the use of fertilizers and
green manure crops.”
Donald J. Murphy, president, Farm
ers State Bank ot Osseo, Osseo, Minne
sota: “ Our bank, in cooperation with
other rural banks in the area, provides
a scholarship for a rural youth to at
tend the University of Minnesota farm
school yearly.
“We have done considerable adver
tising along the lines of soil conserva
tion and increased fertility and have
made a number of loans in this con
nection.”
Virn Kirk, cashier, Worthington
State Bank, Worthington, Minnesota:

“ Our county bankers association has
provided, for the past two years, a
scholarship to the University of Min
nesota farm school for a rural youth
for a one year term.”

N o r th D u h o t u
.1. F. McEntee, president, Citizens
State Bank, New England, North Da
kota: “We have, from time to time,
had discussions with our farm cus
tomers as to better farming practice
for our community. We have also
discussed the best way to eliminate
the high cost of farming.
“ In our efforts to promote soil con
servation and increased fertility we
have visited fields where good soil
conservation is used and have had
many discussions with our farmer
friends regarding this program. Our
interest in this activity is showing
good results.”

C. H. Erbele, cashier, Elk Valley
State Bank, Larimore, North Dakota:
“ Our bank finances 4-H Club activities
and pays the expense for a student
to attend the agricultural short course
at N.D.A.C.
“ Our bank supported the soil con
servation district scrapbook and es
say contests and acted on the commit
tee judging soil conservation farm
awards.”
E. V. Freeman, president-cashier,
State Bank, Souris, North Dakota:
“ Our bank, together with the other
two in the county, contributes awards
to winners of farm management and
soil conservation practices contests of
this soil conservation district.”
( E d i t o r ’ s N o t e : This survey will be
continued in the next issue of the
N

orth w estern

a n k e r .)

Nort hwest ern Banker, November, 1953

4 'ha rge Plans
Sim plified bp
M a ch in e P rocessin g
Bank Machines Facilitate
Cycle Breakdown, Billing and Payments
' -.a ;
W ritten Especially fo r
The Northwestern Banker

By ROBERT RENNER
Vice President and Cashier
Industrial Trust and Savings Bank
Munde, Indiana

PROCESSING —Charge slips are “ broken down”
into eight cycles and charge account envelopes are
proved on the proof machine—all at the same time!
Manual sorting and “ recapping,” and expensive car
bon forms, are not needed.

F YOU already know what the Frank
lin Charge Plan is, please just skip
these first few paragraphs, down to
“ Processing Charges and Credits.” We
think it’s a good idea, though, to give
a brief explanation of the Charge Plan,
for those who are not completely fa
miliar with it.
Our hank was one of the first in
Indiana to sign up with Franklin
National Bank, Franklin Square, Long
Island, for use of the new “Charge Ac
count Plan,” which originally went
into operation in that bank in 1951.

Briefly, this is how it works: the
bank purchases, at a 5 per cent dis
count, the charge sales slips of any
store taking part in the plan. Mer
chants extend credit only to customers
having an Industrial Trust & Savings
Bank Charge Plate, issued by us.
When a customer charges more than
$10, the merchant telephones our
charge account department for au
thorization. This takes very little time,
as we have phones just for this pur
pose.
The merchant endorses his sales

slips and sends them into the bank
each day just like a regular deposit.
Both charge slips and credit slips
(for returns) are enclosed in a pre
printed envelope. We accept the
charge slips without recourse, and
credit the merchant’s account with the
full amount, less our discount. If
there are any credit slips for returned
merchandise, the total of these is first
subtracted from the total of charge
slips, before deducting our service
charge (see illustration of envelope).
So far as the merchant is concerned,
he has nothing further to worry about,
because we take care of all the book
keeping and collection work. Custom
ers’ accounts are maintained by us in
much the same way that a department
store runs its cycle billing depart
ment.

Attracts Merchants

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AMOUNT

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M ERCHANTS DEPOSITS — Sales slips and credit vouchers (for returned merchandise)
are placed in an envelope. The net total of sales slips less credit vouchers less service
charge is included as part of the merchant’s regular deposit (see deposit slip, upper
right). At lower right is a sample of the receipt issued by the National Teller’ s machine;
notice that it is for the full amount of the deposit, which includes a charge account
envelope total of $80.75.
Nort hwest ern Banker, November, 7953

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

Obviously, the plan holds huge at
traction for the merchant. He can
offer customers credit at no charge
to them, no risk to himself, and no
capital investment. And our discount
is small compared to the cost of book
keeping, collection, stationery, post
age, telephone expenses and so on.
Big advantage of the plan for custom
ers is that by having a single charge
plate from the bank, they can shop in
any store displaying an Industrial
Trust Charge Account emblem in its
window, and receive one statement,
make one payment, for all purchases.
Perhaps the greatest benefit to be
realized by the bank is not the profit
to be gained from the plan, but the
publicity and new business we have
received. Balances on merchants’ acCHARGE PLANS . . .

(Turn to page 32, please)

it OM' UV* M od ern ized O nr
Statem ent and L ed ger Sheets
Changes Made in Arrangement, Copy, and Style
of Joint Accounts With Right of Survivorship
Written Especially fo r
The Northwestern Banker

By C. W. FISH BAUGH
Assistant Cashier
Security Trust & Savinss Bank
Shenandoah, Iowa

OR years there has been little
change made in statement and
ledger s h e e t s . Machines have
changed but the sheets remained basi
cally the same. We looked at ours
and decided we would try and do some
thing to simplify them and bring them
up to date.
One thing that had been presenting
a problem was the increased number
of joint accounts with right of surviv
orship. It seems that since World
War II the number of customers re
questing this type of account has tri
pled. No doubt the joint holding of
defense bonds increased this practice.
To type the whole clause on a sheet
took too much time, so we ordered a
rubber stamp reading: “Joint account,
with right of survivorship, payable to
either or the survivor.” We stamped
this on both the ledger and statement
sheets. It was a decided improve
ment, but we found the bookkeepers
had a habit of failing to stamp this
on the sheets. The account would be
opened correctly but after a month or
so and several new sheets some post
er would neglect to stamp the sheet.
With the rapid turnover in employes
it was hard to localize the carelessness,
so correcting this presented an endless
problem.
We felt it was important that these
sheets be stamped. It is true that
the signature card governs the ac
count, but most customers prefer to
see this on their statement each time.
Then it is important to the loan de
partment. When making a loan it is
customary to look at the customer’s
account. A right of survivorship on
the account might make a difference
in which the loan would be granted.
We decided we should have a special
sheet for these accounts. By starting
the account with a special sheet we
felt the bookkeepers would be sure
and use the same type sheet each time
a new one was made. We have found

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Federal Reserve Bank of St. Louis

this to be true. For a color we chose
orange. The joint account signature
cards are usually orange so this
worked very well. Then it was a con
trast to our light green sheets and
stood out in the ledgers at a glance.
We had these sheets headed: “Joint
Account” and the joint account clause.
While making this change we made
several others. On the ledger sheets
we had “A ” printed on one side and
“ B” on the other side on the number
line. This would save the bookkeep
ers having to type this on the sheets
to indicate the first and second sides.
We also had the bank name printed
at the bottom of the sheet instead of
at the top. This not only gives us a
few more lines on each sheet but
makes the customer’s name more vis
ible. The name is the important part
of the sheet and it should be in such
a place that there is nothing to ob

struct the bookkeeper’s view. We had
a quarter inch blank line printed at
the bottom of the sheet to try and
avoid low postings. Bookkeepers are
human, and being human they put off
today what can be done tomorrow.
So, each day making a new sheet is
put off until they are almost posting
in air. This means an untidy sheet
and one that is hard to read. With
this narrow strip across the bottom it
calls attention to stop. Being black
it makes it almost impossible to read
any printing on it. After a couple of
times posting on this strip and the
poster realizes it is easier to make a
new sheet when this line looms up.
We modernized our statement sheets
by changing the old type block letter
ing to the more modern script type. We
MODERNIZED . . .

(Turn to page 99, please)

SOMETHING N E W —Above is a facsimile of the top and bottom sections of the
revised “ Joint Account” ledger sheet used by the Security Trust & Savings Bank, of
Shenandoah, Iowa. The color is orange, to contrast with other ledger sheets the bank
uses. Note the quarter inch dark line at the bottom of the page. It helps to avoid low
Dostings, compels the use of a new sheet.
Nort hwest ern Banker, November, 195J

< --------------------------------- ----------------THE NEW PRESIDENT of the F.P.R.A.,
L. L. Matthews (standing), president o f
the American Trust Company, South Bend.
Indiana, visits with Preston E. Reed (le ft),
executive vice president of the F.P.R.A.;
Lucy V. David, secretary of the F.P.R.A.,
and William B. Ilall, retiring president of
the F.P.R.A., and vice president of the
Detroit Bank in Detroit.

H anker's

*tobM
s to Tell anil Sell

Public Should Know More About Banking
Activities Say F.P.R.A. Speakers
By CLIFFORD DE PUY
Publisher
The NORTHWESTERN BANKER

HE 38th annual convention at De
troit last month of the Financial
Public Relations Association em
phasized that banking should be in a
“gold fish bowl” where all can see just
how a bank operates.

As Howard C. Petersen, president,
Fidelity-Philadelphia Trust Company
of Philadelphia, said, “ Today the trend
seems to be toward doing our banking
in full view of the public—the kind
of view that one gets when looking
into a goldfish bowl. But there was a
time when bankers gave a different
impression, that they held secrets too

difficult for the average man to un
derstand.
“Today, the trend is—and I hope it
continues—toward bringing our varied
activities out into the open. Our cus
tomers must understand what we are
doing and why, and the responsibility
for imparting this knowledge must
rest squarely with public relations’
specialists who not only understand
the full import of each of the bank’s
many activities, but who, likewise, are
able to convey this understanding to
an ever-widening group of people—
staff, shareholders, customers and the
general public.”

V IE W of the grand ballroom at Sheraton-Cadillac Hotel during F.P.R.A. general
session luncheon.
Banker, November, 7953
Digitized for Northwestern
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

The F.P.R.A. now has 1,732 mem
bers, which is an increase over last
year of 91 members, and a 10-year in
crease of 927 members.
The 1954 convention will be held in
Washington, D. C., October 17th to
21st.

—

New Officers
Lee L. Matthews, president of the

American Trust Company of South
Bend, Indiana, was elected president
of the Financial Public Relations Asso
ciation.
Vice presidents named were:
First vice president, Rod Maclean,
assistant vice president, Union Bank
& Trust Company, Los Angeles.
Second vice president, W. W. Delamater, vice president, Tradesmen’s
Land Title Bank & Trust Company,
Philadelphia.
Third vice president, W. E. Single
tary, assistant vice president, Wachovia Bank & Trust Company, WinstonSalem, North Carolina.
Treasurer (re-elected), Harold W.
Lewis, vice president, First National
Bank, Chicago.
Ten members were elected to the
board of directors:
For one year terms: John J. Kirn,
president, The Farmers and Citizens
Bank, Lancaster, Ohio; Howard A.
PUBLIC RELATIONS . . .

(Turn to page 60, please)

—

Our Í
ItiekvnLoans
A r e Hitj Musiness
Broiler Financing Can Be Profitable
If All Important Factors Are in Balance
W ritten Especially for
The Northwestern Banker

By SHELBY FORD
President
First State Bank
Springdale, Arkansas

UR bank has been in the broil
er financing business about 13
years, and we have loaned ten
million dollars on chickens and not
lost a dime!
When I came to Springdale in 1939
the broiler industry was very small
compared with our production today.
As I recall at that time, northwest
Arkansas area was producing around
five million birds per year. Now the
annual production is approximately
sixty million birds for the three coun
ty area, that is, Washington, Benton,
and Madison counties in northwest
Arkansas.
The beginning of the broiler indus
try in Springdale started some 20-odd
years ago, at which time the Chamber
of Commerce assisted one of our citi
zens in starting a small hatchery.
From this small beginning, through
careful care, hard work and careful
study, the broiler raising gradually
grew on a sound basis until it is to
day our largest industry in a very di
versified agriculture section of north
west Arkansas.

After thinking about the above (our
natural advantages) it was decided
there were some other factors that
would have to be coordinated before
a bank could afford to risk its deposi
tor’s money on “chicken paper.”

A Good Baby Chick
1. It is vital to be assured the hatcheryman had a good baby chick to
start with. A good chick is the foun
dation of the grower’s success. One
cannot grow feathers on a cue ball. A
weakly, poorly bred chick is a loss to
all concerned in the beginning. One
cannot make profitable growth out of
a poor chick in eight to ten weeks,
regardless of how good the other qual
ifications may be.
2. The grower should be inclined to
devote his time to raising broilers—has the right attitude to want to take
supervision from hatcherymen and
feed men and processors to obtain the

SH ELB Y FORD

best results. Broiler raising is not a
half-time job; growers need to be
chicken-minded to raise good broilers.
They also need to believe in their
endeavor and ability enough to be will
ing to put up some collateral to pro
tect the risk.
3. The feed dealer or hatcheryman
or processor should have good feed
which will produce a good broiler in
the minimum length of time. There
are many good feeds and there seems
to be progress from season to season
in producing better broiler feed for
mulas.

Proper Facilities
4. The grower must have the proper
facilities, such as equipment, housing
and labor, to amply care for the chick
ens at all times, being sure of plenty
C H IC K E N L O A N S . . .

(Turn to page 36, please)

Potentialities
The potentialities of developing our
section into a major broiler producing
area in 1939 were obvious. The geo
graphic location, climatic conditions
and millions of people in our cities
and towns, with a radius of 600 miles,
were among the important factors.
Our people, too, were accustomed to
making a living on small farms, with
intensified farming; therefore, they
would be naturally inclined to fit the
poultry program in with their dairy
ing, fruit farming and truck farming
programs, provided they could see it
was profitable. Soon this was realized
by a few and as time went on more
and more brooder houses were being
constructed on our farms until today,
most every farmer has some facilities
for raising broilers.

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

W ELL-CARED FOR flocks, with ample quality feed, are essential to the success of
farmers raising broiler chickens. The author’s bank participates in the financing of
this operation through the local feed dealers.
Nort hwest ern Banker, November, 1953

N ew s

and

OF THE BANKING WORLD
By BEN HALLER. JR.. Managing Editor

ONOVAN E. CROULEY, vice pres
ident, N o rth w e ste rn National
Bank, Minneapolis, has been reap
pointed as chairman of the livestock
committee of the American Bankers
Association.
During his first term, the committee
began work on a livestock lending

Foreign Department of Manufacturers
Trust Company, 55 Broad Street, New
York 15, New York.

Thirteen speeches in five days was
the schedule last month of Joseph AAulliams, Jr., Bank of America vice presi
dent, in controllers’ department, San
Francisco.
Mr. Williams was feature United
Nations Week speaker in Reno, Ne
vada, and as such filled out a weeklong program of addresses to service
clubs and civic groups and to the Uni
versity of Nevada.

sary as “ head man” of that institution
last month.
Below is a reproduction of a full
page ad which appeared in the Tulsa
World and Tulsa Tribune. It is signed
by all 423 employes of the bank (count
’em), and departs from dignity in the
careless but sincere message of con
gratulations to Mr. McClintock.

* * *

Twenty-five years is a long time for
one man to be president of a bank, as
a lot of bank presidents of lesser vin
tage will testify. And anniversaries
within a bank organization are often
too dignified, or worse, ignored in the
bank’s promotion.
AVith these two thoughts in mind,
the employes of the First National
Bank and Trust Company of Tulsa hit
on a novel approach, and a real sur
prise to R. Otis McClintock, president
of the bank, who had his 25th anniverD O N O V A N E. C R O U L E Y
R eappointed chairm an of A .B .A .’ s
livestock com m ittee.

Ita n se F la g

The secret of the message was well
kept by everyone and Mr. McClintock’s first view of the ad and “ Happy
Birthday” notice was when he opened
the newspaper that morning.

manual. The manual, a guide to live
stock lending principles, will be re
leased to all banks about January 1,
1954.
The committee was founded as part
of the Agricultural Commission of
the A.B.A., to work with banks on
a g r ic u ltu r a l problems. Committee
members represent every section of
the country, serving as an advisory
board for banks in agricultural lend
ing matters.
Earlier this year at the Farm and
Ranch Congress in Denver, Mr. Crouley assured ranchers that “banks
would continue to finance the live
stock industry in spite of changes in
the price and profit picture.”

^ ^

* * *
Manufacturers Trust Company is
distributing copies of a World Time
Chart showing, in easy, readable form,
the time differences in over 100 coun
tries throughout the world as com
pared with Eastern Standard Time in
New York City. Also included is a
map of the standard time variations
in the United States.
Copies may be obtained from the
o r t h w e s t e r n Banker , N o v e mb e r , 1953
Digitized forNFRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Surprise birthday and anniversary ad
honoring R. Otis McClintock.

A NEW FLA G is flying in New York’s
financial district — The Hanover Bank’ s
“ house flag.”
Recently unfurled for the first time, the
8' x 12' white banner carries a three-foot
replica of the bank’s seal and “ The Han
over Bank” in one-foot letters in blue.
The flag flies from a fourth-story flag
pole (above) extending over the sidewalk
at the bank’s 70 Broadway main office. In
background is famed old Trinity Church.

N. Baxter Jackson, chairman of the
board of Chemical Bank & Trust Com
pany, New York, last month was elect
ed president of the New York Clear
ing House Association.
Mr. Jackson is the 44th individual
to serve as president of the New York
Clearing House, and he is the fifth
chief executive of Chemical Bank &
Trust Company to be elected to this
position.
As president of the New York Clear
ing House Association, Mr. Jackson
succeeds Alexander C. Nagle, presi
dent of First National Bank. Also at
the 100th annual meeting of the asso
ciation, J. Stewart Baker, chairman of
the board, Bank of the Manhattan
Company, was elected chairman of the
clearing house committee, succeeding
AVilliam E. Kleitz, president, Guaranty
Trust Company. George Champion,
senior vice president, Chase National
Bank, was re-elected secretary.

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

T h e O f f i c e r s of
T h e O m a h a ht la t i o n a ! B a n k
i n v i t e y'ou to o u r s u i t e in t h e
Pom p a d o u r R o o m
of t h e
H otel Fo n ten elle
d u rin g the
N ebraska

Ba n k e r s C o n v e n t i o n

Nort hwest ern Banker, November, 1953

H a n k ers

YK n o w

W illiam MM.
McMMonald
Chairman o f the Board
McDonald State Bank
North Platte, Nebraska
. a personal story that links in one lifetim e several
generations o f Nebraska and American history.”

ROM whacking bulls to riding herd
on deposits in one of Nebraska’s
Foldest
banks is a capsule report on
the career of 92-year-old William H.
McDonald, widely-known chairman
of the board of the McDonald State
Bank in North Platte, Nebraska. But
behind those few descriptive words lies
a personal story that links in one life
time several generations of Nebraska
and American history— generations
that have seen the evolution from
virgin prairie to rich farms and
ranches; the development of towns
where Indians once lived; periods of
panic, depression and boom ; the Civil
War and four international wars, but
with it all the steady march of
progress that has seen his home
county develop into one of the busi
ness, cultural and financial centers of
Nebraska.
William McDonald began life in
true pioneer fashion. His father,
Charles McDonald, was on a west
bound stage coach in January, 1860,
when the coach stopped for the noon
day meal at a two-room log cabin
store at Cottonwood Springs, 17 miles
southeast of the present city of North
Platte. That afternoon Mr. McDonald
Nort
hwest ern Banker, November, 1953

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

bought the store and the former
owner took his place on the west
bound stage. Cottonwood Springs
was a large spring beneath an im
mense cottonwood tree a mile south
of the Platte River. Between the
spring and the river was a favorite
camping place of the Sioux Indians.
It was in such surroundings that W il
liam H. McDonald was born on June
14, 1861, the first white child born
in the county.
The Indian squaws made much
over the white baby, the first one
they had seen. They often took him
to their tent, and Mr. McDonald is
the only banker who has eaten dog
stew, about which he remarks, “ They
said I liked it.” A friend made a
small wagon for him that was pulled
by four little Indians, their pay being
a cracker each.
The two-room cabin grew into a
stockade under the progressive guid
ance of the elder McDonald and in a
few years it enclosed what would
now be a full city block, with build
ings and living quarters facing on two
fronts, and eight foot high red cedar
posts facing the other two sides.
Mr. McDonald’s mother was Ora

Henry, whose brother also ran a store
near Fort Kearney, and another
brother, Dr. Charles A. Henry, built
the first brick store building in
Omaha. Her sister married James E.
Boyd, later Nebraska’s first Demo
cratic governor.
Camp McKean, later named Fort
McPherson, was built near the Mc
Donald Stockade in 1863. The fol
lowing year, the big Sioux uprising
occurred and future comradeship
with the Indians was denied. Mr.
McDonald states, “ My parents counted
over 1,000 vehicles in one day on the
Trail. This acted as a fence to the
buffalo. They were the Indian’s
food supply and he could not live
without them.”
Another memorable event in the
life of Mr. “ Mac,” as he is called by
his many friends today, was in 1869
when W. F. Cody, chief scout of the
5th Cavalary, came to the nearby fort.
Henceforth a friendship between the
two families existed and the McDon
alds later financed Buffalo Bill’s
shows at home and abroad. Mr.
“ Mac” is a warm admirer of Colonel
BANKERS YOU KNOW . . .

(Turn to page 50, please)

Heres the story.
the complete story o f w hat B ank o f A m erica
correspondent service can do fo r you
examp l e .

F or

tu rret itontinf/
Here is a unique service which gives you the fastest possible collection and
returns— and it is available only through Bank of America. You may send
cash letters directly to any Bank o f America branch with items payable in the
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items. In such event, through the use of an advice form which Bank o f America
supplies, your account is credited with the amount o f such cash letters
the same day they are collected by the branch.

T h e b e n e f i t s o f D i r e c t ilo u iim j A r e
Quicker presentation o f items, resulting in earlier availability o f funds
and reduction in float.
Rejected items are returned to you directly by the branch to which they are sent,
saving several days involved in returning such items through usual channels.

Send for your copy today

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

• Just

write Bank of America, Dept. ADf San Francisco, California

Mmxk ai
N A T I O N A L J a v Si n Ag s A S S O C I A T I O N
MEMBER

FEDERAL

DEPDSIT

INSURANCE

CORPORATION

Nort hwest ern Banker, November , ì 953

New Combination Unit
A new combination money chest
and record container designed to pro
tect cash from burglars and important
records from fire, has been developed
by the Mosler Safe Company, Hamil
ton, Ohio.
The new unit was shown to the
public for the first time at the Na
tional Business Show last month at
Grand Central Palace, New York.
According to Mosler, the multi-pur
pose protective unit cannot be stolen
because it is anchored in a steel-clad,
reinforced concrete block, too heavy
for burglars to cart away.
For the protection of large sums of
cash, Mosler has built an armored-

steel, burglary resistive money chest
into the upper portion of the concrete
block. Because the money chest is
specifically engineered to resist safe
crackers, it takes one of the lowest
rates of safe-burglary insurance. De
pending upon territory and type of
business, this savings in insurance
premiums can exceed 50 per cent.
For the protection of important rec
ords and ledger books, a Mosler fireresistant record container has been
anchored into the lower portion of the.
reinforced concrete block. The insu
lated record container is also large
enough to hold several cash register
trays which a retail merchant may
want to safeguard overnight.

fÿ / it a i r e t í a i y

Both the money chest and the rec
ord container feature their own indi
vidually operated “Counter-Spy” com
bination lock. In addition, the money
chest is equipped with an Underwrit
ers’ Laboratories tool resisting label,

W e ftk

¡n
DOUBLE D UTY— 'The Mosler Safe Com
pany has built an armored-steel burglaryresistive money chest into the upper por
tion of a steel-clad reinforced concrete
block. For the protection of important
records and ledger books, Mosler has
anchored a fire-resistant record container
into the lower portion of the block. The in
sulated record container is also large
enough to hold several cash register trays
which a merchant may want to safeguard
overnight.

You Get
the Money Quickly
The proceeds o f live stock

All you need do is ask your

sales in Chicago are speedily

sh ipp ers to instruct their

transferred to your bank if

Chicago commission firms to

routed through us. The stock

route through this bank the

yards postoffice is just across

money received from live

the street and the advice is

stock sales. We shall be pleased

mailed on the day o f receipt.

to send you instruction cards.

as well as their approved relocking
device label for added protection
against attack by drills, sledges and
explosives.

LIVE STOCK
BANK

tA a lio n u /

c f7 C
( 7/( C « fJ O

E S T A B L I S H E D 18 6 8

U N IO N ST O C K YARDS

Member Federal Deposit Insurance Corporation

Northwestern
Banker, November, 7953

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

MEMBER FED ER A L D E PO SIT IN SU R A N C E C O R P O R ATIO N

“ Fired? I quit!”
Read how banks helped farm
machinery replace the horse.
Give the grey mare above a carrot
for horse sense. She retired knowing
full well that only a stubborn mule
would try to compete with any breed
of 1953 tractor.
Today most American farmers
(along with a good many farmers
abroad) burn gas instead o f oats to
get their horsepower. Thus the me
chanical marvels turned out by
America’s farm machinery manufac
turers have been put to work around
the world. In less than 50 years their
inventive genius created machines
and implements that have stepped up
the plowman’s daily “ turnover” from
2 to more than 30 acres.
Bank money helped
But without banks things might have

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

been a lot different down on the farm.
From the early steel-wheeled mon
sters to the most modern hydrauliclift beauties, banks have helped
manufacturers turn out faster, tough
er, easier-to-use farm machinery.
How?
Well, bank loans help tractor and
implement companies right down the
line—stocking raw materials, acces
sories- gearing assembly lines to new
models—freeing working capital for
development and research. On the
marketing level, bank loans help fi
nance dealers, and come full circle
by helping individual farmers buy
tractors and implements.
What this means to you
Add all this up and you only need
half a squint to see that commercial
banking hoes a long row in the manu
facture and distribution of the ma

chinery used by American farmers to
grow and harvest some of the biggest,
most bountiful crops in the world.
This is true because of one grass
roots fact: It’s competitive banking’s
job to make the community’s idle funds
available whenever and wherever busi
ness finds opportunities for profitable
enterprise.
It follows, as reaping follows sow
ing, that under these conditions there
are jobs for men and women, returns
for investors, and a rich harvest o f
material advantages for Americans*
rural and urban.
Chase National Bank is proud o f
the part it is playing in American
progress.
*
*
*

The C H ASE National Bank
OF T H E C IT Y OF N E W Y O R K
(Member Federal Deposit Insurance Corporation 1

Nort hwest ern Banker, November, 1953

Out-of-Town Business
Appointment of Charles A. Becker
as an assistant vice president of Man
ufacturers Trust Company, New York,

ican Smelting and Refining Company.
Previously Mr. Becker was associated
with the Commercial National Bank
and Trust Company.
Mr. Becker will be assigned to the
out-of-town business dep artm en t,
southern-western division. He is a
member of the Robert Morris Asso
ciates and is a resident of Saddle
River, New Jersey.

For walk-up customers there is an
auto bank lobby, complete with Diebold Bandit Resistive Enclosure, tell
ers’ wickets, package receiver and
bandit-resistive doors.

"Drive-into" Auto Bank

C H A R L E S A. B E C K E R
A ssistant v ice president

was announced by Horace C. Flanigan,
president.
Mr. Becker is a graduate of Colum
bia College and came to the bank in
1951 after employment with the Amer

The Commerce Trust Company of
Kansas City, Missouri, the first bank
in that city to offer drive-in banking,
now boasts complete “drive-into” bank
ing facilities that cater to both those
customers who wish to do their bank
ing from their cars and to those who
wish to park and do their banking
walk-up style.
Its newest customer convenience,
the auto bank, is located on Tenth
Street in Kansas City, directly con
nected to the Commerce Building,
which houses the main banking quar
ters of the Commerce Trust. The auto
bank facilities are completely con
tained within the adjoining structure,
thus providing the “drive-into” fea
ture. They are specifically designed
to handle both drive-in and walk-up
customers.

Interior of Diebold bandit-resistive en
closure which comprises a part of the Com
merce Trust’s new auto bank is shown here.
Unit features key-locked cash drawers,
combination-locked teller’ s lockers, and
well lighted, ample counter space. The
bullet-resistive steel and glass structure
features drive-up windows at either end,
windows for walk-up customers along the
front.

Built into the same structure which
houses the walk-up unit, and having
a common interior with the walk-up
facilities, are two Diebold drive-up
windows for the convenience of the
auto bank customers who prefer this
method of time-saving banking.

NCB

North. . .
South. . .
East. . .
W est. . .

TRAVELERS
CHECKS
are best

★ backed by America's greatest world-wide bank
★ accepted like cash

★ e x tra profits for you!

★ refunded if lost or stolen

★ satisfied customers!

Y o u keep

ALL the selling commission — 3A of 1%

THE N A T I O N A L CIT Y B A N K OF N E W Y O R K

Northwestern
Banker, November, 1953
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

55 W a ll Street, New York 15, N. Y.
M em ber Fe d eral Deposit Insurance Corporation

I m m e a s u r a b l e . . .

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

One bank asset that never shows up on a Statement of Condition is the value
of good customer relations. These are immeasurable. They are composed of
many seemingly small things which cannot be reduced to mathematical
computation, such as providing customers with checks lithographed on
La Monte Safety Papers. Thousands of bankers have found that the safety
and appearance of these fine papers earn approval from even the most
critical customer. Ask your lithographer for samples or write us direct.

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 i n d i v i d u a l i z e d check paper provides maximum protection
against both alteration and counterfeiting—makes identification positive.

TH E

WAVY

LIN ES

ARE

LA M O N TE TR A D E-M A R K

Nort hwest ern Banker, November, 1953

N ow in Noir

THE FOREIGN Banking Department of The First National Bank of Chicago is now
in their new and larger quarters.
M oving this department was the first step in the bank’ s program to provide better
service through more adequate room by utilizing part of the space in the two buildings
recently acquired by the bank— the former Chicagoan Hotel building on Madison Street
and the Hartford Building at the corner of Dearborn and Madison. The bank’s space
in the new locations has been directly connected with the main banking quarters by
means o f a wide passageway four stories high.
A part of the interior of the new quarters is pictured above.

Special Meeting of
National Cash Register
Directors of The National Cash Reg
ister Company have called a special
meeting of stockholders for November
18, 1953, at Baltimore. The purpose of
the meeting is to vote upon a proposed
amendment and restatement of the
charter of the company to increase
the authorized number of shares of
common stock and to make certain
other changes in the charter. If the

proposal is approved by the stockhold
ers, it is expected that the board of
directors will declare a 10 per cent
common stock dividend, payable be
fore the end of the year. The manage
ment expects to recommend to the
board of directors that the present
quarterly cash dividend of 75 cents be
maintained after the issuance of the
proposed stock dividend.
Proxies to be mailed to stockholders
submit four proposals:
1. To increase the authorized num-

ber of shares of common stock from
2,050,000 to 3.000,000.
2. To authorize the directors to is
sue authorized but unissued shares
without action of stockholders.
3. To grant to directors the power
to make, alter and amend by-laws.
4. To eliminate from the charter mis
cellaneous provisions which are either
unnecessary or obsolete.
Commenting upon the proposed ac
tion, Stanley C. Allyn, president of the
company, said:
“ The company was organized in
1926 under the laws of Maryland in
connection with the reorganization of
an Ohio corporation of similar name.
At that time there were inserted in
the company’s charter a number of
now obsolete provisions which it is
felt should be eliminated. In recent
years the management has declared
two 10 per cent stock dividends and
contemplates the declaration of one or
more such dividends. Among other
things the proposed charter changes
will facilitate action in this direction.”
Of the 2,050,000 shares of common
stock which the company is now au
thorized to issue, 1,969,807 shares are
now issued and outstanding. Stock
holders of record at the close of busi
ness on October 30, 1953, will be en
titled to notice of and to vote at the
special meeting.

Publicity Manager
William A. Durbin, public relations
director, Burroughs Corporation, has
announced the appointment of John
L. Rose as manager of communica
tions and publicity.
He will be in charge of Burroughs
Corporation’s publications, motion pic
ture program and press relations.

M anufacturers FOR BANK FIXTURES AND
BANK REMODELING
of
Fixtures
LOOK TO JAEGER FOR RESULTS
SPECIAL
BANK FURNITURE
MADE TO ORDER
E xe cu tive Desks
Coupon Booths

Tab les
Bank Chairs

Counter Tops
Check A sso rting Racks

S e tte es

Jaeger Manufacturing Company is staffed with experienced
engineers and designers who will be happy to consult with
you or your architect about your Bank Remodeling or Bank
Fixture needs. Every Jaeger job is backed by over 70 years*
experience.

! JAEGER M A N U FA C TU R IN G C O M PA N Y
I 8th and Vine Streets, Des Moines 9, Iowa
! □ W e Would Like Information on Remodeling and Modernizing Our
Bank Fixtures.

i □ W e Would Like Information on New Bank Interiors.
S Bank Name...............................................................................................................
| Address............................................................................. By..................................

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

Northwestern
Banker, November, 1953
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M anu facta ring *
Com pany

lost motion
on your cash
or collection items
Whether it’s noon or nine— or any
other time by your clock or ours, any day
o f the week— you can know that your
cash items are getting first-class attention
at the Continental Illinois Bank.

C o n t in e n t a l I llin o is N a t i o n a l B a n k

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

and Trust Company o f Chicago
L OC K B OX H, C H I C A G O 9 0 , I L L I N O I S
Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, November, 1953

Chartfr I*la as

...

(Continued from page 18)
counts who are new customers more “ Charge Envelopes.” The proof ma
than exceed our present outstandings. chine handles all normal activity as
But what we wanted to tell you is well, of course.
how charges, credits and payments
A few minutes after the doors close
can be processed by machine, so per for the day, the regular proof machine
haps we’d better get down to that operation is completed, and the ma
side of the story.
chine is cleared. Since our charge ac
count department must stay open
Processing Steps
During the day, charge account en until 5:00 o’clock, they can use the
velopes are entered into the regular proof machine in whatever manner
deposit total on our National proof they wish until that hour.
machine. The offsetting entry is made
And use it they do! Charge slips
through a d e b i t key designated are broken down into eight cycles and

C H IC A . O O

charge account envelopes are proved
by the machine, alffat the same time.
Here is the operation:
t. Enter (from " envelope) the net
amount of the deposit—$80.75 in the
illustration—into a credit key. The
key normally designated as “ Depos
its” might be used for this purpose.
2. Enter amount of credit vouchers
into another credit key — perhaps
the general ledger credit key. At

s IL L .

BILLING- — Cycle trays are removed
from the tile when it is time to “ bill” that
particular cycle on the National “ Class 31”
machine.

the same time, sort credit vouchers
into corresponding bin.
3. Enter amount of service charge
(discount) into a credit key; the
journal credit key might be used.
4. Enter charge slips, one by one, into
eight debit keys used for the eight
cycles. At the same time, distribute
the slips into the corresponding
bins. (If you have more than eight
cycles, more of the proof machine’s
debit keys may be used, of course).

A good connection
for you to m a k e !

Errors Are Found

In Chicago, the correspondent banking facilities of
the American National Bank can open up an entirely new
"area of operations" for the out-of-tow n banker.
For, in addition to performing the usual routine
correspondent banking functions, the American National
offers many extra services.
Based on our broad experience— and thorough knowledge
of business and industry in the greater Chicago area
— these extra services are being used to advantage by
banks all over the country. Are you one of them ?

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 m p a n y o f C h ic a g o
LA S A L L E

AT W A S H I N G T O N , C H I C A G O

Northwestern
Banker, November, 1953

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

90, IL L IN O IS

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

That’s all there is to it!
Not only are cycles distributed and
totaled, but errors are found and cor
rected immediately. If an amount has
been incorrectly entered on the charge
envelope, or if any error in addition
or subtraction has occurred, the proof
machine will lock up as soon as the
operator tries to process the next en
velope. If the merchant has failed to
include a charge slip, or included one
too many-—or if the operator herself
makes a mistake—the machine will in
dicate it by “ locking up.”
In fact, by having the operator enter
the individual items on charge slips
(instead of just entering the total),
you automatically check the addition
on the charge slips themselves.
The operation is fast, simple, and
foolproof. The cycle breakdown is
completed and totals secured for each
cycle, as well as for the amount of
sales drafts, cre d its and service

no matter what the nature of your prob

our m an at the Irv in g is like a
m em ber of your own sta ff. . . call

lem may be. Besides his own capacities
to serve— he has direct access to special

on him just as fr e e ly .

ists in all fields of commercial banking
Have you ever hesitated to call for

plus, of course, the world-wide facilities

assistance—assuming that your request
might be considered too demanding or

of the Irving.
•

even too trivial? Please remember that
your man at the Irving won’t feel that

•

Would you like to learn more about how
you can broaden your service to your cus

way at all.

tomers by making Irving Trust Company
vour New York correspondent? We’ll be

His job is clearly defined—to see that

glad to talk to you any time you say.

you get all the service we can provide,

IR V IN G T R U S T C O M P A N Y
ONE W ALL S T R E E T

Capital Funds over $123,000,000
W illiam

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

N .

E nstrom,

•

NEW Y O R K 15, N. Y.

Total Resources over $1,200,000,000

Chairman of the Board

Domestic Banking Division,
MEMBER

R ichard H.

N olan H arrigan ,

FEDERAL

D E PO SIT

W est,

President

Senior Vice President in Charge

IN SU R A N C E

CORPORATION

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

1953

34
charges—all at the same time. And
the envelopes are all proved automati
cally. Needless to say, the five-part
carbon form used in making a cycle
sort manually is eliminated.
There is one more very important
factor. The National proof machine
automatically counts the number of
slips in each cycle. By keeping track
of the number of slips we have for
each cycle, right up until the time
they are mailed out, we know imme
diately if a slip is missing.
As you may have noted from the
description above, we do not break out
the credit slips into cycles on the ma
chine, but simply put them all into
one compartment and one total. We
could break them out, of course, but
have found that there are so few that

it would not be worth while to make
a machine job of sorting them.

Processing Payments
Customers make payments directly
to the bank, at any teller’s window.
The stub at the top of the customer’s
statement is removed, and amount of
payment “certified” by National tell
er’s machine. At the same time, the
amount adds into the “ miscellaneous”
total, which is used for no other pur
pose.
The proof machine operation during
the day is this: payments are entered
through a key called “charge pay
ments,” and the offsetting entry is, of
course, either a charge to the teller’s
cash or a distribution of the custom
er’s check.
The charge account department

breaks payments down into eight cy
cles in the same manner that charges
and credits are broken down. A cred
it key is used to enter the total from
a teller’s machine, and eight debit keys
are used for the cycle breakdown. Then
the total from the next teller’s ma
chine is entered, and so forth. Need-

I t vea lli/ sta rted
in

* / r :

When Leduc’s No. 1 well “ blew in” ,
Canada’s ailing oil industry boomed
in spectacular fashion. Since then,
oil reserves have increased 25 times,
production potential 15 times.
In 1952, approximate production
was 58,000,000 barrels.

PAY M E N T —When the customer makes
payment at the bank, both stub and state
ment are “ certified” by the National Tell
er’s Machine. At the same time, the
amount adds into a separate control total
for charge account payments. The stub is
retained by the bank and used as a posting
medium to the customer’s statement and
history record card.

f si

less to say, payments are actually
credits, though we use proof machine
debit keys to break them out into
cycles.

Edmonton, "Canada’s Oil Centre” ,
has been served by Imperial Bank
since as early as 1891- There are now
seven branches in this city as well
as many others providing
complete banking services through
out the oil areas and accumulating
up-to-date information on current
conditions, trends and opportunities.

We have found that using the proof
machine to break down charges, cred
its and payments has eliminated ex
pensive forms and saved time. But
perhaps even more important is the
fact that all work is kept in proof and
under absolute control at all times.
Breaking down cycles by hand as
against the proof machine operation is
like the “batch” system of distributing
deposits compared to a modern proof
machine distribution.
Cycle billing enables us to accom
plish the entire billing job on one
National “Class 31” accounting ma
chine. A “history record card” like
that used by department stores is
posted automatically for each custom
er as statements are prepared. Cycles
prove out exactly to the penny, and
without difficulty.

LET IMPERIAL BANK
KEEP YOU UP-TO-DATE
ON CAN ADA!

We invite interested U.S. banks
to investigate our services as a
correspondent bank. Write:
Imperial Bank of Canada,
Head Office, Toronto

IM P E R IA L
' tlte Inm lc th a t seitdem In u ft"

IMPERIAL BANK OF CANADA
N o r t h w e s t e r n Ban ker, N o v e m b e r ,

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

1953

54-3

We started the charge plan about
seven months ago, on March 26th, and
have been discriminating in the selec
tion of both merchants and customers.
We have 66 stores and approximately
5,100 charge accounts so far. This is
expected to increase substantially as
more and more people become familiar
with the plan.—The End.

The First N atio n a l B an k of Chicago
Statement o f C on dition September 30, 1953
ASSETS
Cash and Due from B a n k s ......................................$ 621,031,971.61
United States Government Obligations . . . .
754,160,523.83
Other Bonds and S ecu rities......................................
142,213,261.25
Loans and D i s c o u n t s .............................................. 1,189,544,002.87
Real Estate (Bank Buildings and Adjacent Property) .
1,928,349.77
Federal Reserve Bank S t o c k ......................................
5,550,000.00
Customers’ Liability Account of Acceptances
.
.
2,677,874.28
Interest Earned, not Collected
.
.
.
.
7,646,410.31
Other A s s e t s .............................................................
993,579.89
,725,745,973.81
LIAB ILITIE S

Capital Stock . . . .
90.000, 000.00
95.000, 000.00
S u r p lu s ..............................
7,129, 794.96
Other Undivided Profits .
2,649, 009.76
Discount Collected, but not Earned
1,800, 000.00
Dividends Declared, but Unpaid
30,316, 588.99
Reserve for Taxes, etc. .
35,500, 000.00
Bills Payable . . . .
2,753, 103.79
Liability Account of Acceptances
505,798,356.51
Time Deposits . . . .
1,759,496,912.19
Demand Deposits
195,215,178.29 2,460,510,446.99
Deposits of Public Funds
Liabilities other than those above stated
______ 87,029.32
S2,725,745,973.81
United States Government obligations carried at $261,492,717.25 are pledged
to secure United States Government and other public deposits, trust
deposits, and for other purposes as required or permitted by law.

Board of Directors
E dw ard E. B rown
C hairm an o f the B oard
J. D . F a r r i n g t o n
P resident, C h ic a g o ,
R o c k Island and Pacific
R ailroad C o m p a n y

R . D o u g l a s St u a r t

H u g h s t o n M . M c B a in
C hairman o f the B oard ,
M arsh al] F ield &
C om pany
B entley G . M cC loud

D irector,
Q u ak er O ats C o m p a n y
L o u is W a r e
P resident,
Intern ational M in erals
& C h e m ic a l C o rp .

B anker
H arry C. M urphy

Ja m e s B . F o r g a n
V ic e -C h a irm a n o f the
B oard
W alter M . H eym ann
V ice -P re sid e n t
H e n r y P. I sham
P resid en t, C le a rin g I n
dustrial D is tr ic t, I n c .
J a m e s S. K n o w l s o n
C hairm an o f the B oard
and P resid en t,
S te w a r t-W a r n e r C o r p .
H o m e r J. L i v i n g s t o n
P resident

P resident, C h ic a g o ,
B u rlin gton & Q u in c y
R ailro ad C o m p a n y

C . J. W h ip p l e
C hairm an o f the B o a rd ,
H ib b a rd , Sp en cer,
B artlett & C o .

L o u is B . N e u m i l l e r
P resident,
C aterpillar T r a c t o r C o .
J a m e s F. O a t e s , Jr .
C h airm an ,
T h e P e op les G a s L ig h t
and C o k e C o .

J o h n P . W il s o n
W ilson & M c llv a in e
R o b e r t E . W il s o n
C hairm an o f the B oard ,
Standard O il C o m p a n y
(In d ian a)

C larence B . R a n d a l l
C hairm an,
Inland Steel C o m p a n y

R obert E . W ood

G i l b e r t H . S c r ib n e r
W inston & C o m p a n y

C hairm an o f the B oard,
Sears, R o e b u c k and C o .

The First National Bank
of Chicago

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

Nort hwest ern Banker, November, 1953

CHICKEN LOANS . . .

To B a n k ers

Ia w r en c e

ON A FIELD
WAREHOUSE RECEIPT

is lik e

CERTIFIED

o n a c h ec k

(Continued from page 21)
of feed and water before chicks at all
times. The hatcheryman or feed deal
er or processor should be sure the
grower does not get over-expanded
and get more capacity than he can
properly finance or care for.
5. The feed dealer, or hatcheryman,
or processor should have available the
proper technical supervision, make pe
riodic checks of the flocks they are
feeding. This man should also be
trained in some laboratory on the de
tection and control of chicken diseases
or, in other words, be a “chicken
nurse,” so at the first symptoms of
disease the losses may be held to a
minimum.
(i. Growers should be culled very
carefully, starting with farmers who
own their places and have some live
stock, and can at least have some
equity, either in cash or collateral, to
protect the dealer and bank.

Market Outlet Important

A G uarantee of INTEGRITY, SECURITY and FACILITY
INTEGRITY. The integrity of the Lawrence Warehouse Com
pany, expressed for forty years in conscientious service, has
won the confidence of bank loan officers throughout the
United States, Canada and Mexico.
SECURITY. Sound, experienced Lawrence operation is backed
up by legal liability and fidelity bonds totaling $1,000,000 at
each of our more than 2500 field warehouse locations. This
unique bond coverage provides the most comprehensive
security available to banks and other receipt holders today.
FACILITY. Especially popular with banks is the exclusive
Lawrence-IBM Commodity Collateral Report for loan offi
cers. This modern, electronic record not only cuts the cost
of servicing commodity loans — it also keeps the banker
continuously up to date on inventory values.

IawrenceWarehouse Company
-------NATIONW IDE FIELD W A REH O U SIN G -------3 7 D ru m m
1 0 0 N . La S a lle

S t ., C h ic a g o

O FF IC E S

N oFRASER
r t h w e s t e r n Banke r, N o v e m b e r ,
for

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

S tre e t, S a n
2 , I II .

1953

F ra n c is c o , C a lif o r n ia
•

7 9 W a ll S tre e t, N e w Y o rk 5 , N .Y .

P R IN C IP A L

CITIES

7. Growers should have the best pos
sible market outlets at all times, so
they can dispose of the broilers at
the best price at the proper time. A
broiler needs to be sold when he is
ready. Holding usually results in loss
to all concerned. The broiler business
is not always rosy as we have very
poor periods in our markets for
weeks at a time. No doubt you recall
the 18 cent market a year ago last
January and February, and March,
and also the 21 and 22 cent market
we had in 1951 during the holiday sea
son for about two months. The aver
age cost here is about 23 cents per
pound, barring any loss from disease
hazards.
Before any one finances any com
mercially grown chickens, they must
determine that the region in which
they are located is suitable with re
spect to type of grower, cost of land,
and buildings and other factors.
After having decided that the Ozark
regions of northwest Arkansas had
met all the qualifications for a good
broiler producing area, and seeing the
need for some plan of financing, if
we ever expanded, I figured out the
following plan:

Dealer Statement
First the dealer must be honest and
capable of properly managing a feed
and hatchery business, and he must
have proper equity or capital in his
business so we can afford to help fi
nance the deal on a sound basis. If
our decisions are favorable thus far,
we ask the dealer to furnish us with
his financial statement. We analyze
the statement and determine his net
worth, taking into consideration with
his net worth especially the amount

¿si?

o
r

BANKS
from all parts
o f the co u n try h a v e b een
H anover Correspondents for
o v e r 5 0 years
V
IrJ^i

Jif?V

------------- — ‘

„ „

.....

A ^ 'B a n k e d C o m p l y

••■

. . 1 didn’t intend to put you good fM s to

cerely

appreaate n

might

K / ’^
ÍÍ li Q Í 7

add, you folks atthe

)

some/loW
^

alieaysd » the riekt and nice thtng.

TI
T U

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

4 v n V E R

H A N K

H . A T S O V l i»
Memter Federal Depo* France C o x i a n

: cp

Northwestern Banker, November, 1953

of the liquid assets, and from this
analysis we set up a line of credit
for the dealer secured by discounting
and endorsing notes and chattel mort
gages with recourse to the bank.
This chicken paper is executed and
delivered usually to the dealer at the
time the baby chicks are delivered to
the grower. The chicken notes are
usually secured by the baby chicks,
as well as part of any other assets the
grower may have, such as cattle or
farm machinery. We recommend two
cows as additional security, or the
equivalent thereof in addition to each
1,000 chicks covered by the mortgage.

Advance 50 Per Cent
The notes and mortgages are made
up on a basis of the anticipated feed

cost of raising the chickens for broil
er market, which we figure at market
value on the basis of say 70 cents per
bird. Should the grower have a 10,000
chicken capacity, for example, the
dealer would draw the note and chat
tel mortgage for $7,000; the dealer, in
turn, would take this particular note
and chattel to our bank and endorse
same over to us with recourse, and
our bank would take this paper into
our work and advance the dealer 50
per cent of the face amount of the
paper or, in this instance, $3,500. We
would continue this process with ad
ditional paper until the dealer reached
the amount agreed upon when we
granted him the line of credit. The
paper is usually made for 90 days, or

In Kansas City
ifs City National..

when the chickens are sold, whichever
is the sooner.
Sometimes with dealers with excep
tionally high net worth, and a large
amount of liquid assets, we will grant

ADEQUATE housing that assures yearround comfort for the chickens is another
vital necessity. This structure is typical
of modern broiler buildings.

him an open line of credit up to a
certain amount, then above that agreed
amount on the open line, the dealer
will discount chicken paper as out
lined above up to the amount agreed
upon for total line of credit.
Upon the basis outlined above the
bank has 35 cents per bird in the deal.
(Turn to page 40, please)

There IS a reason for
D ie b o ld superiority

inAFTER-HOUR
DEPOSITORIES
AFTER HOUR

rOoi^oUiPi

. . . p rov id in g a friendly,
experienced group o f officers
always interested in p ro m o tin g
the business o f your bank
and its custom ers.

Custom-built—
precision engineered— the
only depository designed
tor customer convenience
and bank protection.

C ity National
I N

F E D E R A L

C O R P O R A T I O N

OHIO

P re-em inent Since 1859

D E P O S I T

I N S U R A N C E

CANTO N,

M E M B E R

Kansas City 10, Missouri

Northwestern
Banker, November, 1953

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

¿ ¿ ¿ ¿ d e fy

BANK
BOOKKEEPING
MACHINE^ ^
...b e c a u s e it m eets to d a y ’s need for lo w er costs

Operators like the Burroughs because they get more work
done and done right, with less effort. Even inexperienced
operators quickly gain the skill and speed that make for an
efficient, smooth-running bank bookkeeping department.
Bankers have judged the thousands of
B u rrou gh s Bank B ook k eep in g
Machines in use in banks today— and
in every case the verdict is the same—
faster, more efficient bookkeeping
methods . . . greater productivity—
fewer errors, less operator fatigue . . .
everyday savings in motion, money
and manpower.
This practical endorsement is under
standable because it comes from the
men who specified the design and

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

WHEREVER

construction of the Burroughs Bank
Bookkeeping Machine. It is the direct
result of the advanced features that
were recommended by bankers across
America and engineered into this fine
bookkeeping tool by Burroughs.
Your local Burroughs man can show
you how this banker-suggested,
banker-approved machine can help
your bank get more things done faster.
Call him today or write Burroughs
Corporation, Detroit 32, Michigan.

T H E R E ’S B U S IN E S S

T H E R E ’S

Burroughs
Nort hwest ern Banker, November, 19S3

CHICKEN LOANS . . .
(Continued from page 38)
The dealer will have flocks on feed
of various ages, thus being sold at
different times; therefore, we have a
staggered production which gives us
an over-all good basis for security on
the chickens.
We ask the dealer or hatchery man
to give credit on his books for the
full amount of the note and mortgage
made at the time the baby chicks are
delivered to the grower. Each time
feed is delivered the amount is
charged against this account.
When the broilers are sold, should
the feed bill be insufficient to use all
the credit, the dealer makes the ad

justment. Just as soon as the broilers
are sold, the dealer comes to the bank
and pays that particular grower’s note
and delivers his note and mortgage
back to him. We have an agricultur
ally trained man in our bank and, in
addition to visiting and working with
farmers, he spot-checks the chattels to
see that none are sold with note not
paid.
We finance some growers direct. We
secure these loans on the same basis
as any other chattel mortgage, which
takes considerable more collateral as
we do not have the dealer as an en
dorser.
We require insurance on the chick
ens against fire and tornado hazards.

DROVERS NATIONAL BANK*
PROVIDES A WORLD-WIDE SERVICE
for ITS CORRESPONDENTS

We do far more than provide fast service on
livestock items. We provide a world-wide collections-transit-credit information service for our
correspondent banks.
Drovers service is friendly and fast. We invite
your inquiry about it.

* The Drovers National Bank is a direct member o f the Chicago
Clearing House Association and the Federal Reserve System. It is
one of Chicago's oldest banks, established on February 12, 1883.

The dealers usually furnish us with a
reporting form policy, with a loss pay
able clause in the policy protecting
the bank. I do not know of any insur
ance you can secure on chicks against
disease hazards.
The equity of the grower is usually
the baby chicks and the facilities for
raising the broilers, and the cost of
labor involved in raising the birds.

Examiners Critical
The bank examiners for the first
year or two were very critical of our
chicken paper. We have had as much
as $350,000 in chicken paper at our
peak growing periods. Each time
when they examined us, they would
ask, “How are you getting along with
your chicken paper?” 1 would answer,
“You can see it is all current and no
past due notes.” I reasoned with the
examiners and told them the banks
in a cotton country loaned on cotton,
and a cattle country on cattle, and in
a hog country on hogs, and therefore,
as we were in a chicken country, if
we did much business, we would have
to loan on chickens. Lately, they have
not said much about our chicken
notes.
In the past 12 years we have loaned
approximately ten million dollars on
chickens as outlined above, and to date
we have not lost a dime on chicken
paper. Of course, some of our dealers
have lost money at times, but our
dealers pay the bank and work out
their deficit with their customers.
The key to the whole situation as
I see it, in regard to financing broil
ers, after taking into consideration the
things I have enumerated, is to have
the right type of dealer and, in turn,
he will select the right type of grow
er, and if he is honest and financially
responsible, he will take into consider
ation that his name is on the back of
the notes.
I am convinced that broiler paper
handled properly in the proper terri
tory is one of our best risks.—The
End.

Instant Appeal!
The LEE Bungalow

SAVINGS

Jdlrovors IlanltS
Drovers National Bank and Drovers Trust & Savings Bank
UNION STOCK YARDS, CHICAGO 9, ILLINOIS
Members, Federal Deposit Insurance Corporation

S iz e
M a d e o f b r illia n t S t y r e n e
P la s
t i c . in c o n t r a s t i n g c o l o r s .
F in e
d e t a ils o f a r e a l h o m e .
M o v a b le g a r a g e d o o r ,
open
w in d o w s ,
f la g s t o n e
p a th ,
sto n e
w a ll,
g r e e n la w n , s h in g le r o o f , c la p b o a r d s id in g a n d
o th e r fe a tu re s.
P e rm a n e n t
c o lo r s — n o t ju s t
p a in t .
H o ld s a p p r o x im a t e ly $ 5 0 — c o s t s y o u
le s s t h a n 5 0 c e a c h .
LA R G E

SPA CE

Send

THE

fo r

LEE

FO R

IM P R IN T — IK

G O LD

li s t o f r e p r e s e n t a t iv e s

PLASTIC

MFG. CO.

173-175 Lee Ave., Bridgeport, Conn.
N o r t h w e s t e r n Banke r, N o v e m b e r ,

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

1953

24-HOUR TRANSIT SERVICE
Our 24-hour Transit service and air mail
dispatch often make funds available days earlier.
Many correspondents save valuable time
by air mailing all western items to
A M E R IC A N T R U ST C O M P A N Y. This
24-hour Transit operation assures you
swift service. Our many offices and west-wide
relationships offer exceptional facilities for
collection. Air mail your West Coast items to
A M E R IC A N T R U ST C O M P A N Y, San Francisco.

S t a t e m e n t o f C o n d itio n
S eptem ber 30, 1953
R E S O U R C E S
C ash o n H a n d and in B an ks

LIABILITIES
$

U . S. G o v e r n m e n r O b lig a t io n s

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

State, C o u n ty , and M u n ic ip a l B o n d s

5 2 ,8 8 7 ,8 5 3 .9 2

O th e r B o n d s and Securities

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

S to c k in Federal R eserve B a n k

1 ,6 5 0 ,0 0 0 .0 0

L o an s and D is c o u n t s

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

B an k P rem ises and E q u ip m e n t

1 0 ,8 4 8 ,8 1 1 .9 0

O th e r R eal E state

1 .0 0

C u sto m e r s’ L iab ility un der A c ce p ta n ce s

1 ,5 7 1 ,1 7 4 .2 0

A c cru ed Interest R e c e iv a b le and
O th e r A sse ts
T o ta l R esou rces

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

D e p o s its

$ 1 ,1 7 3 ,0 9 3 ,7 7 2 .1 5

A c ce p ta n ce s O u ts ta n d in g

1 ,6 0 0 ,1 1 9 -9 0

R eserve for U n earn ed D is c o u n t

8 ,0 4 3 ,9 9 4 .6 1

R eserve for Interest, T a xes, etc.

9 ,3 9 9 ,9 8 8 .5 1

O th e r Liabilitie

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

C apital F u n d s:
C apital S to c k

20,000,000.00

Surplus

3 5 ,0 0 0 ,0 0 0 .0 0

U n d iv id e d Profits
T o ta l Liabilities

13 0 0 5 ,6 5 6 .0 1
$ 1 ,2 6 1 ,6 9 2 ,4 5 8 .1 4

United States Government and other securities carried at $174,464,591-50 are pledged to secure U. S. Government
Deposits, other public funds, trust deposits, and for other purposes as required or permitted by law.

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

Northwestern Banker, November, 1953

How do you get a new schoolhouse?
It starts with your local school board—recognizing
the need.
Then it goes on the ballot. If the voters approve,
they authorize issuance of Municipal Bonds to pro
vide the necessary money.
Next comes the public sale of these bonds. In
competitive bidding, a bank or investment dealer
usually buys the whole issue, making the building
funds immediately available. The bonds are then
offered to investors.
For 71 years, the Harris Bank has been buying
and selling bonds in just this way. Since 1882, we
have provided over nine billion dollars for schools,
highways, bridges, water systems, sewers, parks and
other community improvements in all parts of the
country.

This part of our business gives us a particularly
satisfying feeling, because it helps so many people
in so many ways.
A community gets the facilities it needs for the
betterment of local living.
The taxpayers of the community pay for their
new facilities over a period of years, thus easing
the tax burden without postponing the benefits.
And the investors who buy the bonds are pro
vided income free from Federal income tax.
*

Many banks in every section of the country look to our
Investment Department for guidance in the purchase
of Municipal Bonds—a field in which we are proud
to have played a leading part for more than 70 years.

HARRIS Trust

O r g a n iz e d as N . W . H a rris & C o ., 1882— In c o rp o r a t e d 1907

and Savings BANK
115 W. MONROE STREET, CHICAGO 90
M em ber Federal R eserve S ystem ...M em ber Federal D eposit Insurance C orporation

t h w e s t e r n Ba n ke r, N o v e m b e r , 1953
Digitized N
foro rFRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

IN VESTM EN TS

;a^.' Ü
*- -'/■ r

A dm inistration M alting
Tow ard a Ha
hi n
edHudget
Federal Reserve Now Offering Reserves to the Banking System
Before They Are Needed, and Not Waiting Until the Demand Becomes Great
By RAYMOND TRIGGER
Investment Analyst
New York City
HE sharp rise that developed last
month in the bond market in gen
eral and in the government securi
ties market in particular is raising
some pointed questions. It was bound
to.
The secondary market rally that
surged up in late September carried
the price of the much-buffeted new is
sue of Treasury S^s to over 103, near
ly five points above the below-par level
which it touched in the jittery market
of the late spring. Recoveries of like
extent were staged by the issues of
long-term 2%s, with the bank-eligible
2%s of 1972-1967 at last recapturing a
rank equal with the restricted Victory
issue due the same year. In the field
of Treasury one-year paper, the new
est issues of certificates of indebted
ness rose to premiums of more than
five-eighths of one point above issue
price, while the new 2% per cent
notes due in 1957 went to a premium
of 1% points.
Even more striking was the progres
sive easing of short-dated investments,
with the 91-day discount bills going to
a yield of 1.3 per cent, the lowest since
the Federal Reserve-Treasury “accord
market” of March, 1951; and more than
a full 1 per cent below bill yields reg
istered in the fall of last year. Of
most significance, perhaps, was the
Treasury’s action in supplanting its
Series B nonmarketable tax savings
notes with a new series offering yields
ranging from 1.56 per cent for six
months to 2.21 per cent for two years.
The yields on the withdrawn issue
had ranged from 2.16 per cent to 2.47
per cent.
Heavy switching out of bills into
the Series B notes made it necessary
for the Treasury to withdraw the May
issue. As yields on the marketable
bills plunged toward IV2 per cent, the
old series of savings notes became a
double embarrassment. Not only was
the borrowing costing the Treasury

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

too much money, but there was always
the possibility that the Treasury, al
ready crowding its statutory debt lim
it, might be swamped overnight with
vast subscriptions to the notes of the
May series.

Market Movement
The market’s movement since Labor
Day has been a most drastic, if not be
wildering, performance for the world’s
top-rated basic investments, especially
in remembrance of its plunge in the
opposite direction in the late spring.
Divergent theories are being put forth
to account for it. The extremes of
these theories may be summed up as
follows:
(1) The Treasury and the Federal
Reserve System, chastened by the dis
quieting decline in the market last
spring, have had a change of heart,
and despite continued lip-service to
a “new deal” in “sound money,” they
are back at the old “populist” stand
promoting in the market a constant
bias to cheap money and higher bond
prices. To further this bias, the Re
serve is willingly furnishing “streams

of bank reserves” on which the Treas
ury can float its deficit or other finan
cings. The only threat to an indefi
nite maintenance of this money anes
thesia over the national economy
would be a sudden new booming of
industrial production and of credit ex
pansion to proportions beyond the re
sources of the capital and consumer
markets.
(2) Essentially, the adjustment is
only a perfunctory change in the eco
nomic climate. The nation’s industrial
plant is at last relaxing after years of
overwork and the change—a change
evidenced by a slowdown in the sea
sonal fall expansion of bank loans—
had to be felt in the bond market. As
the demand for capital slackened, mar
ket yields were bound to fall and
prices bound to rise. That prices rose
so sharply in late September is only
a testimonial to the thinness of the
postwar market for government se
curities. The secondary price rally
this autumn likely was overdone, just
as the spring decline. As technicians
of the Federal Reserve, the Treasury
and the private bond houses become
more adept at maintaining a free mar
ket for the war-swollen public debt, it
would be reasonable to expect an
abatement of the wide price swings
such as took place this year right be
fore and after the summer.

Change in Economy
The truth probably lies somewhere
between these extremes. Unquestion
ably there has been a change in the
national economy in the form of a vis
ible slowdown both in business activ
ity and in the seasonal demand for
industrial credit. And there has been
a change in the official policy about
money management. But both shifts,
upon close examination, would seem
to be superficial, not radical, and tran
sient, rather than lasting. They do
not point, necessarily, to either a busi
ness “depression” or to an abandonNorthwestern Banker , November, 1953

Investments

merit of the “honest money” objectives
professed by the Eisenhower Admin
istration and spokesmen for the cen
tral bank.
The change in the Treasury’s atti
tude toward the market is best evi
denced by its readiness to undertake
substantial new-money financing in
the short-term market, despite the
heavy concentration of public debt
payable within one year. The change
in the Federal’s attitude is shown by
its continued open market purchases
of Treasury securities despite the
growing likelihood that the annual fall
expansion of business activity will fall
measurably below that of last year.
It must be kept in mind, however,
that the Treasury, professedly, is not
abandoning its plans for stretching out
the maturity of the public debt by re

fundings into long-term issues. And
that the Federal’s open-market pur
chases last month and this were made
with due consideration being given to
the fact that the Treasury is about to
raise from $1,500,000,000 to $2,000,000,000 more of new money in the market
to finance the current deficit. Perhaps
the most meaningful change in the
Federal’s practices is its zealousness
to furnish needed reserves to the bank
ing system before they are needed, in
stead of grudgingly, and after the re
serves were needed, as was the case
last spring.

Administration Progress
Another consideration of signifi
cance is the fact that the Eisenhower
Administration in its first year in office
seems to be making substantial prog
ress toward its professed goal of a

Municipal Bonds
FI RST

IOWA

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Des Moines 9, Iowa

200 Equitable Building
Phone 4-7158

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M U T U A L , IN C .
A n open-end management type mutual fund diversifying its invest
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S E L E C T I V E F U N D , IN C .
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An open-end m anagem ent typ e m utual fund diversifying its investments am ong bonds, preferred stocks, and other senior securities.

C S / t / Y i r f f ' / ' ) S T O C K F U N D , IN C .
A n open-end management typ e m utual fund diversifying its invest
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Fa ce Amount C ertifica te C om pany
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A fa ce am ount certificate com pany issuing installm ent certificates
o f 6, 10, 15 and 20 year m aturities and single paym ent face
am ount certificates.
This is not an offer to sell these securities. T h ey are subject to the registration
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Copies o f the prospectus relating to the shares o f capital stock or certificates
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Please send me the prospectus relating to the company I have checked:
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□ Investors Stock Fund, Inc.

AD D RESS

□ Investors Selective Fund, Inc.
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C I T Y ............................................................................................................

Northwestern
Banker, November, 1953

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

balanced budget. If this goal is
achieved by the next congressional
appropriations and tax legislation, the
money managers will no longer be be
deviled by a Treasury deficit having
to be financed in a capital market
heavily beset by the requisitions of
an expanding private enterprise econ
omy.
In appraising the likely course of
official money policy, it is a sound
practice not to rely altogether on the
public statements of the responsible
authorities, but to keep testing what
is being preached against what is be
ing practiced in the marketplace. How
ever, the testing goes both ways, too.
In watching what is unfolding in the
market, it must be kept in mind that
full patterns are not always deducible
from the first meanderings of threads.
And that it is likewise good policy to
test back the seeming pattern against
the public professions of intent. At
the Washington convention of the
American Bankers Association state
ments of pointed meaning to all pro
fessional investors and especially to
banks were made by Secretary of the
Treasury George Humphrey and J.
L. Robertson, a member of the Fed
eral Reserve Board.
Mr. Humphrey said, “We must ap
proach our objective cautiously, but
resolutely, and always press toward it
. . . the balance between the money
and credit supply and the actual flow
of goods is best maintained by letting
the price of money rise and fall with
the demand for money. At the same
time, our Federal Reserve System can
and should use its powers to keep the
market for credit orderly and to avoid
excesses in either direction, to avoid
either inflation or deflation. . . . The
Federal Reserve has a good money pol
icy. It is free to allow the demand
for money to have its normal and nat
ural effect and to supply funds to keep
pace with the normal growth. . . . It
is our firm intention to offer more
intermediate and long-term issues at
opportune times in the future. We
will use care not to press the market
in competition with state, municipal
and private financing.”
Reserve Board Governor Robertson
said, “The choice is not between high
and low interest rates. The choice is
between (1) letting interest rates rise
and fall through the interplay of the
demand for credit and a supply attuned
to economic needs; and (2) on the oth
er side, expanding the supply of credit
to drive down—or hold down—inter
est rates, even though the excess cred
it thus created accomplishes nothing
except a rise in prices. We have
chosen the first course in the belief
that it is in the interest of the people
as a whole.”—The End.

V
IM It KCTOItS

"SEES:, * ~
CLINTON

R. BLACK, JR.
R. Black, Jr.

President, C.

M A N 1JF A C T U R E R S

|p ■ T
rap
J ^ W -J 5^ B

Corporation

ms m ±

m m ■)

1wB

w r y*7
JL

EDGAK S. BLOOM
Director, Mew York and Cuba
Mail Steamship Company

ALVIN C. BRUSH

LO T U ieH S ed
0

Chairman, American Home
Products Corporation

. _

S ta tem en t

.. .

L o ild ltW ll

September 30, 19o3

CHARLESC. CLOUGH
LOU K. CRANDALL
President, George A. Fuller Company

H E S O .R C E S
CaSh and Dl.e from Banks . . .
$ 758,266,534.85
U. S. Government Securities . . .
750,865,789.98
U. S. Government Insured F. H. A.
M o r t g a g e s ...................................
77.819,118.10
0 0
State. Municipal and Public Securities
133,761,880.48
Stock of Federal Reserve Bank . .
4,511,700.00
Other S ecu rities..............................
26,800,048.77
Loans, Bills Purchased and Bankers’
Acceptances...................................
1,008.844,795.73
M o rtg a g e s.......................................
12,560.194.48
^
Banking H o u s e s ..............................
14,371,004.58
Customers’ Liability for Acceptances
11,950,590.38
Accrued Interest and Other Resources
7,003,720.80
QOG '70!“ 97Q l !“
$2,806, / 00,3 , O. Id

CHARLES A. DANA
Chairman, Dana Corporation

Horace

k lam ga n

john m . kkan kun

President, United States
i.ines com pany
joiin g em m ell , jr .

Ciyde Estates
paolino gerli

President, Gerii

&Co.,

inc.

to.LN L. iohnston
Director, Phillips Petroleum Company

" ' s i m i a n \ h Z Z S& B a n ie tt

KENNETH F. MacLELLAN
President, United Biscuit Company
of America

JOHN T. MADDEN
President, Emigrant Industrial
Savings Bank

J f %B I I I HT1IE

i02 - d ^ j ^ . M a Suire&
Co- lnc■
geokge v. McLaughlin

Capital
. . . . $ 50,390,000.00
Surplus . . . .
100,000,000.00
Undivided Profits .
27,291,407.78
--------------------Reserves for Taxes

Vice ('hairman
Triborough Bridge and Tunnel Authority

c. k . palm er
Director, d u e t t Peabody
ceorge

Unearned Discount, Interest, etc. .
Dividend Payable October 15, 1953
Outstanding Acceptances . . .
Liability as Endorser on Acceptances
and Foreign B i l l s .........................
Other L ia b ilitie s ..............................
Deposits .............................................

&Co., me.

j. pa 11 erson
&Lehigh

President, Scranton
coa l Co.
w illiam

g. rabe

Chairman, Trust Committee

HAROLD

RICHARD

Netv York City

HAROLD V. SMITH

$ 177,681,407.78
22,258,445.45
1,763,650.00
12.670,547.26
16.588,980.04
1.960,112.48
2,573.862.235.14
----------------------- $2,806,785,378.15

President, Home Insurance Co.

vam ra\ifi
L. A. VAN t>U.ILL

United States Government and other Securities carried at $157,783,229.40 are pledged to
secure public funds and trust deposits and for other purposes as required or permitted by law.

Chairman, National Dairy
Products Corporation

HENRY C. VON ELM
Honorary chairman

Head Office: 55 Broad Street, New York City

GEORGE G. WALKER

MOKE THAIS IWO OFFICES 1IS 4, It EAT E 1C XKW YORK
M e m b er Federal Deposit Insurance Corporation

Electric Bond and Share Co.

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

Northwestern Banker, November, I95Î

^ T * « * * 1'*et
¿T '

LEGAL LIABILITY
BOND
$ 1 ,0 0 0 ,0 0 0 .0 0

•'°'*4''

| Legal Liability

. behind every WAREHOUSE RECEIPT

TERM INAL

RESOURCES
over $ 4 ,5 0 0 , 0 0 0 . 0 0

( i ) the most modern, extensive field warehous
ing service, (2) sound financial resources, and
(3) the most complete and comprehensive bond
coverage.

W e can help you to extend accommodations to

Offices in Principal Cities
Des Moines Office
511 lowa-Des Moines National Bank Bldg.
George V. Mickelsen, District Mgr.
2-1208
Omaha Office
312 Electric Bldg.
W. H. Otto, District Mgr.
Atlantic 7190

valued customers in excess of open-credit limits
—-with the protection of sound and dependable
collateral. Experts in every phase of inventory
loan procedure, we inspect, organize, supervise
and control inventory— and convert it to highly
preferred collateral for you.

ST. PAUL TER M IN A L W A R EH O U SE CO
Digitized Northwestern
for FRASER Banker, November, T953
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

425 EAST 8th STREET

ST, PAUL, MINNESOTA

IN S U R A N C E

f# o A m erica ns W a n t
L ow er In su ran ce H ates?
Questionable, Says This Insurance Executive, Who Believes
Americans Reluctant to Pay the Price of Safer Driving
By JOHN W. GUNN
Chairman of the Board
Employers Mutual Casualty Co.
Des Moines, Iowa

E SEE much these days in the
insurance papers and also in
the general press concerning
the cost of automobile insurance. Ev
eryone seems to think that it is too
high. Some say that the companies
are pricing themselves out of the mar
ket, like the butter producers, and that
some substitute like oleo will take over
our market if we don’t watch out. The
suggested substitute, of course, is state
insurance. Agents and public critics
alike say that high rates are not the
answer to our problem, and that some
thing must be done to lower the cost
of accidents, or people will rebel
against private insurance.
For a generation, at least, the Amer
ican people have been horrified by the
terrific loss of life and property result
ing from highway accidents. For years
the National Safety Council and hun
dreds of local organizations have con
ducted safety campaigns, coined safety
slogans, published safe driving advice
and broadcast warnings, appeals and
imprecations.

Warnings to All
Insurance companies, newspapers,
radio stations, automobile clubs and
service clubs nation-wide have adopted
the cause of automobile accident pre
vention, spending millions of dollars
in their efforts. Educators, ministers
and public officials have thundered
from their rostrums and pulpits. Fa
thers have warned their children,
wives have warned their husbands

and policemen have warned every
body.
In short, everyone talks about safe
ty. But, as in the case of the weather,
no one has done anything significant
about it. If 1953 continues as it has
begun, we will set a new high record
in automobile accidents and fatalities
this year. Probably more than 39,000
people will die contributing to it.
No adult American driver can truth
fully say that he doesn’t know how
to drive safely, and how to avoid acci
dents. Very few people want to kill
their fellow drivers, and still fewer
choose their automobile as a means of
committing suicide. Then why, if we
don’t want to have accidents, and we
know how to avoid them, do we con
tinue to have them? Are we like the
arctic lemmings, who are moved pe
riodically by an instinct of self-de
struction to plunge blindly over cliffs
into the sea? That does not seem rea
sonable if, as we have been told, selfpreservation is the first law of nature.
We do not believe that the American
people are collectively going insane,
despite the obvious inference from our
highway record. What is the answer?

Answer Is in Discipline
We believe the answer lies in the
American habit of resisting discipline.
As a people, we don’t like to be
“pushed around,” as we call it. We
don’t mind seeing the other fellow dis
ciplined if it is for the common good,
but somehow we like to believe that

Scarborough’s Loss Prevention program will save your
bank many headaches and many dollars. It is yours
along with the broadest protection at the lowest cost.

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

|
|

JOH N W . GUNN

we are capable of running our own
lives as we see fit. The truth of the
matter is, we don’t want highway safe
ty if it means giving up our own indi
vidual freedom to do as we please.
We are consciously proud of being a
free people, and we are not averse to
living dangerously, if that is the price
of freedom.
How many of us would be willing,
under pain of imprisonment in jail, to
always observe the following safe driv
ing maxims?
1. Never to get behind the wheel
after a drink of beer or spirits.
2. Never to drive faster than 40
miles per hour.
3. Never to take our eyes off the
road to look at the scenery, a bill
board, a Burma Shave jingle, or
a pretty girl.
4. Never to pass a vehicle without
a long, clear view ahead.
5. Never to park in a prohibited
zone, no matter how urgent our
business near by.
6. Never to let our annoyance at an
other driver cause us to do some
thing foolish.
These are only a few things that
cause accidents, yet the observance of
them is the price of safety. Do we
really want to pay that price? Sure,
we want the other fellow to do it, but
do we want to do it ourselves? Do
we want safety, after all?
We can have it if we want it. All

Scarborough &
Company

Insurance Counselors to Banks

F IR S T N A T IO N A L B A N K B U IL D IN G . C H IC A G O 3 , IL L IN O IS . STale 2 - 4 3 2 5

Nort hwest ern Banker, November, 1953

Insurance

we have to do is stop talking about it,
and do something; and that something
is rather simple. It has been available
to us for many years. All we have to
do, individually, is to obey to the let
ter our motor vehicle laws. All we
have to do collectively is to insist
that judges apply the maximum pen
alty in every case of conviction under
those laws. In other words, we need
only to believe that our traffic laws
were meant to be obeyed, and to be
sure that every other driver believes
likewise. For those who won’t be con
vinced without a jail sentence, we must
be ready to send them there to think
it over.

We don’t need a traffic cop in every
block or a patrolman in every mile of
highway. We simply need self-disci
pline for the majority, and the exam
ple of certain, severe punishment for
the minority who will not discipline
themselves. Don’t you think that if
you went to jail for one year for driv
ing after a “couple of beers” that your
friends and neighbors would quit such
foolishness pronto? If your son were
put away for six months for reckless
dirving and fined $1,000, don’t you
think his young friends would drive
with some discretion thereafter?

Sounds Harsh
We suspect that this simple remedy

■A

That New MORTGAGE
PROTECTION PLAN
Real

sounds very harsh when we apply it
to ourselves. Are we, after all. ready
to apply it? Do we, after all, want
safety on the highways? We seriously
question it, or we would have had it
long since.
There has been too much emphasis,
in our opinion, upon safety campaigns,
safety education, and upon continual
talk about the subject. If talk would
bring about an end to our highway
slaughter, we would have very few ac
cidents today. At this late date, more
talk is rather futile. What we need
is action.
The American people can have safe
highways, and much lower insurance
rates, if they really want them.
Do they? Do you? —The End.

Heads Credit Division

LOAN BUILDER

William H. Muhl was named vice
president in charge of the credit in
surance division, North Central Life
Insurance Company, President Theo
dore S. Sanborn announced.
“ This position was made necessary
due to the rapid expansion of our com-

Bankers who have seen it agree . . . here is one
of the finest mortgage protection plans of all.
It provides maximum protection to you and your
customers at minimum costs. In fact, the net cost
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WRITE FOR DETAILS NOW . . .

B ANK E R S S E C U R I T Y LIFE
I NS U R A NC E S O C I E T Y
LIFE DEPARTMENT

DES MOINES 7. IOWA

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Extended Coverage
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HOME OFFICE
N o r t h w e s t e r n Banke r, N o v e m b e r ,

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

1953

CEDAR RAPIDS, IOWA

pany in recent years,” Mr. Sanborn
said. During each of the past three
years North Central’s sales have more
than doubled, and the first three quar
ters of 1953 have already seen last
year’s sales doubled. So far during
1953 the company has paid for more
than $12,000,000 of life insurance in
addition to the disability coverage
placed in force. All of this business
was written in the north central
states.”
As vice president, Mr. Muhl will as
sume a greater share of the company’s
increased administrative responsibili
ties while continuing to direct the
development of the company’s direct
insurance division.

Insurance

1st rtf S t. P a u l fv n tv n n ia i Ends

OPEN HOUSE —’When the First of St. Paul announced a three-day public open house
as one of the closing attractions of its Centennial year observance, congratulatory
flowers came from friends of the bank all over the country. Some of them, are shown
here on a huge stage in the center of the First’s main banking floor.

C ENTENNIAL year for the First
National Bank of Saint Paul is
over, as far as the observance phase
of it goes. Now the First is reflecting
on the first nine months of 1953 and
wondering how so much observance
could possibly have been crowded into
that period.
Keynote of the observance was a
Centennial medallion, a well-done
bronze affair suitably inscribed. It
was developed in various forms for
various uses and thousands of them
were distributed during the 1953 Centenial year. Many other items came
off the Centennial production line to
remind the public and the banking
world that the First was 100 years old.
First public announcement of the
impending Centennial year was made
in Christmas greeting cards and a full
page Christmas greeting in the local
newspapers in December of 1952 “ on
the eve of the Centennial.” This was
followed by a series of news stories,
feature articles and advertisements in
local newspaper, radio, TV, billboards
and banking magazines.
But all these things were almost
incidentals. There were bigger things.
The first, in a rather constant nine
months series of luncheons, dinners
and parties, was an employes’ Centen
nial party the evening of January
13th, when all the bank’s staff gath
ered in a local hotel for dinner, skits
that good naturedly lampooned the
bank, and dancing. The event was
handled in its entirety by the em
ployes.
As time went on there were special

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Federal Reserve Bank of St. Louis

group tours, special group luncheons,
a bankers’ sons and daughters lunch
eon, flower shows, a Red River ox
cart parade through the city’s loop
one noon hour, an employes’ doll dress-

ing contest, and luncheon club pro
grams. When customers came to the
bank on January 5th there was an
18 by 24 foot stage in the center of
the First’s block-long banking floor,
and on it a Centennial exhibit present
ing items contemporary to the bank’s
early days. It was the first of nine
monthly exhibits carrying the Centen
nial theme.
The grand finale, toward which ev
erything had been aimed since the
first Centennial announcement, came
in September with a Centennial edi
tion of the bank’s house organ, a fourpage rotogravure section, an employes’
open house, a three-clay public open
house, three days of luncheons for
business men and women of the city,
and a Centennial observance closing
ceremony on the banking floor, with
the well-known Meredith Willson as
master of ceremonies.
Approximately 400 persons a day at
tended the luncheons for the business
men and women, and Mr. Willson, in
the closing ceremony, interviewed
Philip L. Ray, chairman of the First’s
executive committee; Richard C. Lilly,
chairman of the board; Julian B. Baird,
president, and Parker Paine, grand
son of the Parker Paine who in 1853
established on Third Street in St. Paul
the bank that was the forerunner of
the First National.—The End.

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TODAY

Nort hwest ern Banker, November,

1953

Insurance

BANKERS YOU KNOW . . .
(Continued from page 24)

Cody, whom he states was one of
the nation’s greatest showmen and
was victimized at the end of his
career by associates.
The railroad in 1869 soon stopped
travel on the Trail. In 1872, the
family moved to North Platte, with
young William whacking bulls, and
as he recalls now, “ 1 could see the
town kids eyeing me and 1 really
popped the bull whip to impress
them.”
Young Bill McDonald’s education
began in a school dugout in Cotton
wood Canyon. Later he moved to a
log school at the fort, attended a pri
vate school in Omaha during 1868 and
1869, and then went on to schools in
North Platte. After that lie went to
Lincoln University in Lincoln, Illi
nois, and Bailey’s Great Commercial
College at Keokuk, Iowa.

F ire

On January 2, 1878, Charles Mc
Donald purchased the interest of
Lester Walker in the banking firm
of Walker Brothers, in North Platte,
the new firm being known as Mc
Donald and Walker. On November
8, 1878, James C. Walker sold his
interest to his partner and the firm
became the Banking House of Charles
McDonald, with William H. McDon
ald becoming associated with his
father at that time. Later, on January
3, 1902, the bank was incorporated
under Nebraska laws as the McDon
ald State Bank, its present name.
The elder McDonald was president
from 1878 until his death at the age
of 93 in 1919. He was succeeded by
his son, Mr. “ Mac” serving as presi
dent until 1926, and as chairman of
the hoard since then. This year, the
McDonald State Bank is observing its
75th anniversary of founding and it
has the unique distinction of having

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Harold S. Evans, President
4th and Park Streets

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Federal Reserve Bank of St. Louis

Des Moines 9, Iowa

as chairman of the board a man who
has been with the bank since its
organization three-quarters of a cen
tury ago. He still presides at all
board meetings. J. Y. Castle, now
president, is only the fifth man to
hold that office in the bank.
In all, Charles McDonald had five
sons and two daughters. In addition
to Mr. “ Mac,” only one brother sur
vives, James Boyd McDonald, who
lives in Omaha and is a director of
the McDonald State Bank. William
McDonald was married to Minnie
Belton on June 16, 1886. They had
one daughter, Miss Janet, who still
lives with her father at the family
home in North Platte. This home
has a wealth of historical references
in it and any evening Mr. “ Mac” and
Miss Janet may he found giving of
their information to some high school
student or reporter from a distance.
A past president of the North
Platte Chamber of Commerce, he has
always interested himself in com
munity affairs. He was chosen to cut
the ribbon completing the last gap
of the Lincoln Highway in Nebraska.
He attended the American Bankers
Association convention in Kansas City
in 1889. The Nebraska delegation at
this meeting formed the Nebraska
Bankers Association in 1891. He has
since missed only four conventions of
the Nebraska Bankers Association,
and is a familiar figure to both young
and old bankers throughout the state.
He is a short, wiry individual, quick
of speech and action. He is 5 feet 7
inches tall and his active weight was
140 pounds.
He is a 32nd degree Mason, a Shrill
er, a member of the Elks, and is the
next to the oldest living member of
Tangier Temple, Shrine, in Omaha.
A natural question in the minds of
all those who meet or read about Mr.
“ Mac” is, “ How does he compare
those early years with the present,
what does he think of current busi
ness and world conditions in view
of his years of experience?”
Looking back on the eventful years
that have slipped by since his boy
hood on the Nebraska prairies, Mr.
“ Mac” tells us, “ Have no fears of the
immediate future because during my
active life 1 have seen really tough
times when drouth, discontent, weak
government and panic gave us bad
problems. With everyone working,
plenty of money, and plenty of pro
duction, how can we have deep con
cern? All we have to do is hold our
heads and act reasonably in all our
dealings.”
It is such a true pioneer spirit, still
looking to the future, that assures
this country of future progress.

Insurance

A tte n d

O ne-ïïhiy C on ferenHeads
ce
Garold

Preston Office

Weasmer of Preston, Iowa,
is the new assistant cashier in charge
of the Preston office of the Farmers
Savings Bank of Spragueville.

SPECIALIZING IN

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CONFERENCE — In a recent one-day meeting of its correspondent bankers from a
13-state area, the City National Bank and Trust Company of Kansas City gave the 774
in attendance a program of speakers jammed with a goodly supply of “ take home”
ideas. After a welcome by R. Crosby Kemper, City National president, the guests heard
Aubrey G. Lanston, president of Aubrey G. Lanston & Company, Inc., New York invest
ment firm, discuss the “ General Investment Outlook.” In this talk he said he does not
feel that there will be a return to the pegged market, with which view the Federal
Reserve and the Treasury apparently see eye to eye.
Other speakers on the program included Charles G. Young, Jr., vice president and
trust officer of City National, who outlined “ Recent Developments in Retirement Plans
for Banks.” A good share of the afternoon was taken up with a spirited panel discussion
of the livestock situation from the grange to the range. J. Milton Freeland, vice presi
dent of City National, was moderator, assisted by Claude K. McCan, chairman of the
Victoria National, Victoria, Texas, and one of the southwest’s larger cattle producers;
Maurice Johnson, vice president and sales manager, Staley Milling Company, Kansas
City, and Cliff J. Kaney, president of Swift and Henry Livestock Commission company,
Kansas City.
The closing speaker was Fred G. Gurley, president of the Atchison, Topeka and Santa
Fe Railway Company, Chicago.
Pictured above in photographs taken at the meeting are, left to right (in photo at
le ft): Mr. Kemper, Mr. Gurley and Mr. Lanston; and in photo at right, Dale Ainsworth,
vice president, City National, and Frank Farris, president, American State Bank,
Oswego, Kansas.

I NS URANCE
CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
Mt. Pleasant, Iowa
E. A. HAYES
President

O. T. WILSON
Secretary

E s t a b lis h e d in 7 9 2 9

Bank Officer Honored
Directors and officers of Missouri’s
largest bank, the Mercantile Trust
Company of St. Louis, honored Hord
Hardin, their executive vice president,
at a testimonial banquet last month.
The occasion was the 50th anniversary

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Sidney Maestre, right, chairman of the
board, Mercantile Trust Company of St.
Louis, presents a silver service and scroll
to Hord Hardin, executive vice president
of Mercantile. Mrs. Hardin looks on.

of Mr. Hardin’s devotion to the bank
ing profession.
Hord Hardin, recognized as one of
the foremost credit experts in the
United States, began his banking ca
reer as an office boy with the Missis
sippi Valley Trust Company on Octo
ber 3, 1903.

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Federal Reserve Bank of St. Louis

ALLEN J. LEFFERDINK C.L.U.
PRESIDENT

N o r t h w e s t e r n Ban ker, N o v e m b e r , 1953

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Federal Reserve Bank of St. Louis

TRUST

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FOUNDED

1824

165 B R O A D W A Y , N E W Y O R K 15
M e m b e r F e d e r a l D e p o s it In s u r a n c e C o r p o r a t io n

55
turity, will pay the holders 2 per cent
interest.
Duluth banks have been paying 1
per cent on regular savings accounts,
in which the deposits are being made
available on demand, and also have
been accepting longer term money on
one-year certificates of deposit at the
rate of 1% per cent.

Named Cashier
Division Meeting
The Farmers and Merchants State
Bank officers and their wives and bank
force attended the annual meeting and
banquet of the Southwest Division,
Minnesota Bankers Association at
Worthington, Minnesota.
A record crowd was in attendance.
Two hundred and ninety-six steak
dinners were served following a social
hour at the Worthington Country
Club.
V. L. Kirk, cashier, State Bank of
Worthington, was elected president;
J. L. Ekse, cashier, Farmers and Mer
chants State Bank of Ruthton, was
elected vice president; Harry N. Dirks,
Farmers and Merchants State Bank
of Minneota, was elected secretarytreasurer.

Has Birthday
J. C. Miller, president of the First
National Bank of Bertha, Minnesota,
observed his 91st birthday recently.
The venerable banker is in his 55th
year in that profession and daily puts
in an appearance at the bank to at
tend to his work.
With Mr. and Mrs. J. B. Gebhard,
Mr. Miller organized the State Bank
of Bertha and in 1902 the name was
changed to the First National Bank
of Bertha.

with the Union State Bank of Montivedio, Minnesota, for the past five and
one-half years.

Meet in Le Center
At a meeting of the Le Sueur Coun
ty Bankers Association held at Le
Center, Minnesota, officers were elect
ed for the ensuing year. They are: G.
F. Parkos, First National Bank, New
Prague, president; Wm. N. Kennedy,
cashier, Elysian State Bank, vice pres
ident, and Quinton Peterson of the
Le Seuer State Bank, secretary and
treasurer. The late F. B. Strom was
president of the county association at
the time of his death.

New Savings Plan
Announcement was made that all
Duluth, Minnesota, banks will offer
to their customers two-year savings
certificates which, when held to ma

Carl V. Lind of Crookston has been
named cashier of the First State Bank
of Mabel, Minnesota, to succeed C. S.
Johnson.
Mr. Lind and his family moved to
Mabel October 15th.
He was to take over active manage
ment of the bank November 1st, when
Mr. Johnson leaves for Hokah to take
charge of the Commercial State Bank
which he organized two years ago.

Buys School Bonds
The Eveleth, Minnesota, First Na
tional Bank was the successful bidder
on the $85,000 School Rehabilitation
bonds with a bid of 2.75 per cent.
They offered a premium of $12.50.
The bonds will run for a span of 10
years, with the last installment due
December 31, 1962. The proceeds from
the sale of the bonds will be used for
a number of projects by the board of
education.

it tulli ituifs tta b y itv v f

County Meeting
The annual meeting of the Fillmore,
Minnesota, County Bankers Associa
tion was held at Preston last month.
The following officers were elected
for the ensuing year:
Charles Da h ling, First National
Bank, Harmony, president.
K. L. Churchill, First National Bank,
Spring Valley, vice president.
Elmer Anderson, Ostrander, secre
tary.
E.
H. White, First National Bank,
Mabel, treasurer.

New Assistant Cashier
G. W. Milne, president of the Guar
anty State Bank and Trust Company,
St. Cloud, Minnesota, has announced
that at a recent meeting of the board
of directors, Douglas M. Johnson was
elected to the position of assistant
cashier.
Mr. Johnson has been connected

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Federal Reserve Bank of St. Louis

BA B Y BEEF — This fine 885-pound Hereford steer went on the auction block at the
1953 Minnesota Junior Livestock Show and brought $336 to its owner, Robert Ulland
of Corning, northwest of Austin, Minnesota. Purchaser of the prize animal was First
National Bank o f Minneapolis, and George S. Henry and Richard S. Banfield, vice presi
dents of the bank, are pictured left to right above with young Ulland. Obtained origi
nally from Dr. J. H. Hoeven of Aberdeen, South Dakota, the steer was reared from
calfhood by Ulland and won the Freeborn County 4-H championship this year.
Nort hwest ern Banker, November, 1953

T HE village of Crystal, Minneapolis
suburb, is awaiting word from the
Minnesota State Commerce Commis
sion on its recent application for a
bank in that community.
About 25 residents rode a chartered
bus to a hearing before the commis
sion. Incorporators of the bank seek
ing the charter are Herbert K. Walker,
Hobert J. Bronstad and Ralph Benethum of Crystal. They were repre
sented at the hearing by State Senator
Raymond J. Julkowski, Minneapolis
attorney.
* * *
Rollin G. Andrews, Minneapolis in
vestment banker, active in Minneap
olis civic groups, has been re-elected
to one presidency and named to an
other top post.
Mr. Andrews was returned to the
position of president of the First Universalist Church of Minneapolis at the
annual meeting of the congregation.
He also was elected chairman of the
Minneapolis and Hennepin county
chapter of the American Red Cross,
succeeding Arnulf Ueland, president
of the Midland National Bank of Min
neapolis, who had headed the chapter
for two years. Mr. Ueland was elected
an honorary member of the board of
directors.
Mr. Andrews, who headed the Minneapolis-Hennepin county Red Cross
fund campaign in 1950, is vice presi
dent of J. M. Dain & Company of Min
neapolis. He also heads the Minneap
olis Better Business Bureau.

Wendell ï . Burns, senior vice presi
dent of the Northwestern National
Bank of Minneapolis, was renamed
treasurer of the Red Cross.
^
*
Various Minneapolis bankers have
been named committee chairmen in
planning for the local observance of
National Thrift Week starting Janu
ary 17th. Gerald P. Uttley, general
chairman, named A. W. Gray of the
Midland National Bank of Minneapolis
to head the scholarship committee;
Loyal Simenson, Fidelity State Bank
of Minneapolis, luncheon, and Alice L.
Foss, Farmers & Mechanics Savings
Bank of Minneapolis, publicity.
* * *
Eugene Oredson of the Edina State
Bank has been named a member of
the board of directors of the Retail
Credit Association of Minneapolis.
* * *
The First National Bank of Minne
apolis and Kalman & Company, Inc.,
are participating in the underwriting
of a new issue of $75,000,000 threeyear 3 per cent dollar bonds of the
International Bank for Reconstruction
and Development.
* * *
Earl E. Crabb and Dr. O. B. Jesness
of Minneapolis have been elected mem
bers of the board of directors of the
Green Giant Company of Le Sueur,
Minnesota. Mr. Crabb recently retired
as chairman of the board of directors
of Investors Diversified Services, Inc.
Dr. Jesness is head of the department

of agricultural economics at the Uni
versity of Minnesota.
* *
High-speed automatic elevators are
to be installed in the 19-story First
National Bank-Soo Line Building, third
tallest general office building in Min
neapolis. The project, costing an esti
mated $400,000, will start in March and
be completed by December, 1954.
* * *
Kenneth 1). Morlan, assistant cashier
at the Midland National Bank of Min
neapolis, died recently at the age of
50. He had joined the bank in 1952
and was a graduate of the American
Institute of Banking and the school of
banking at the University of Wiscon
sin. Surviving are his wife, a daugh
ter and a brother. Services and burial
were in Minneapolis.
* * *
Henry Verdelin, former Minneapolis
banker, has been elected president of
the San Francisco Bank. Mr. Verdelin
formerly was a vice president of the
First National Bank of Minneapolis.
He was national president of the
American Institute of Banking in 193637. He became senior vice president
of the San Francisco Bank in April,
1952.
*
Gordon Murray, president, and Clark
Bassett, vice president of the First
National Bank of Minneapolis, have
been reappointed to various commit-

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Northwestern Banker, November,

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Federal Reserve Bank of St. Louis

1953

Minneapolis 4, Minnesota

M id la n d N ational Bank
M i n n e a p o l i s 1, M i n n . — M A i n 0 5 1 1
MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORP.

Minnesota News
tees of the Chamber of Commerce of
the United States.
* * *
Ashton Carhart, vice president of
the First National Bank of Minneap
olis, has been elected to the board of
trustees of Shattuck School at Fari
bault, Minnesota.
* * *
Stockholders of the Northwest Bancorporation have voted to adopt a de
ferred compensation profit sharing
plan for employes of the corporation,
according to an announcement by J.
Cameron Thomson, president.
Out of the 1,547,892 shares outstand
ing, 64 per cent were voted in favor
of the plan.
The program provides for setting
aside in a trust fund each year, begin
ning with 1953, a small part of profit
for the ultimate benefit of employes
age 30 and over who have completed
five or more years of service with the
corporation and its affiliates.
* * *
The Minnesota group of the Invest
ment Bankers Association of America,
in conjunction with the University of
Minnesota’s general extension divi
sion, is offering a course in funda
mentals of investment banking on the
university campus.
The course is under the direction of
George C. Power, Jr., investment coun
sel.
Sji

sji

Deposits in Minnesota banks are
continuing to increase, according to
figures released recently.
Charles M. Wenzel, state commismer of banks, said resources of statesupervised banks in Minnesota in
creased by 82 million dollars during
the year ending June 30th. The total
.as of that date was $1,230,000,000, as
compared with $1,148,000,000 on the
isame date the preceding year.
Both loans and discounts in banks
of the St. Paul area showed large in
creases. They totaled $242,544,747 as
of September 30th, a gain of $21,791,086 over the figure a year ago of
$220,753,661.
Deposits rose from $584,755,929 in
the same period to $606,815,580, an in
crease of $22,059,551.
Minneapolis and suburban banks
had deposits of $1,264,546,409 on Sep
tember 30th, an increase of more than
47 million dollars over the total on
June 30th.
Deposits at the Farmers & Mechan
ics Savings Bank of Minneapolis
reached an all-time high of $203,705,430.
Loans and discounts also reached an
all-time high of $440,387,890, an in
crease of more than 20 million dollars
from June 30th.

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Federal Reserve Bank of St. Louis

Establishment of sound audit pro
grams to stop an increase in embez
zling by bank employes was advocated
in Minneapolis recently by A. S.
(Chico) Chaves, cashier and comptrol
ler of the Live Stock National Bank
of Omaha.
Mr. Chaves made the suggestion in
a talk to 625 junior bank officers at
tending a Minnesota Bankers Associa
tion staff conference.
The junior officers at the conference
also heard a talk by Harry E. Mertz,
secretary to the technical commis
sions, National Association of Bank
Auditors and Comptrollers.
He urged them to adopt modern op
erations and to find out what it is
costing their bank to do business.
* % *
The sixth women’s forum of the
First National Bank of Minneapolis
got under way recently with a capac
ity attendance at both opening ses
sions. The speaker was Dr. E. L. Butz,
head of the agricultural economics de
partment at Purdue University.
Speakers at subsequent sessions
were A. R. .laqua, director of the in
stitute of insurance marketing at
Southern Methodist University; Wal
ter C. Nelson, president of the Eberhardt Company; Alfred A. Stoll, Min
neapolis attorney; Arthur C. Regan,
vice president and secretary of the
First National Bank, and Harold E.
Wood, president of Harold E. Wood &
Company of St. Paul.
Part of the bank’s public relations
program, the forums are conducted
under the supervision of King Bennethum, assistant cashier.
* * *
Harold Underhill, assistant manager
of the bookkeeping department for the
First National Bank of Minneapolis,
won a $25 award for having the high
est average grade of men students in
the American Institute of Banking
courses leading to the standard cer
tificate.—The End.

MADE FOR Y O U !
S P E C IA L B A N K E R ’S CA SES

INDEXED
1—
2—
3—

A to Z— 21 pockets
Jon. to Dec.— 12 pockets
1 to 31 — 31 pockets

FULL

CA N VA S

INDEXED
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3—

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1 ALL
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and reinforces the tight sealing
security of the full wide flap
with its extra heavy gumming.
Safety flap protects contents
when opened with knife. Only
two seals required; making
possible a great saving on each thousand envelopes. The
ordinary Registered Mail Envelope requires three or four seals
to insure safety.
Sizes— 11" x 5"— 12" x 10"— 15" x 10"

See. IfcutA. StcUixuiesi, S p e c if Sm eoct
Sm ead manufacturing company, inc.
H A S T IN G S , M IN N E S O T A

NewYork--64Wall Street

SanFrancisco--333CaliforniaStreet

Chicago: Special Representative's Office, 38 South Dearborn Street

5 7 5 TZrancdee

(Zonada •Resources Exceed $2 Billion
Northwestern Banker, November, 1953

Minnesota News

Nels L. Oison
Nels L. Oison, 81, well-known re
tired banker, business pioneer and
early day public official, died at his
home in International Falls, Minne
sota, following three weeks of ailing
health. He was chairman of the board
of International State Bank, which he
served as president for 24 years prior
to his retirement in 1944.

Elected President
The Citizens State Bank of Echo,
Minnesota, h a s recently advanced
Leonard M. Nelson to the position of
president, succeeding the late E. L.
Broecker, and Gregor A. Weber, for
merly assistant cashier, is now the
cashier. Mr. Nelson has been with
the bank since its organization in 1936
and Mr. Weber, who began his bank
ing experience in Montevideo, joined
the staff in 1946.

sponsoring a Minnesota Bankers schol
arship for some high school graduates
in Faribault county, and which will
be announced at a later date.
Other officers elected at this meet
ing were: P. J. Flo, Bricelyn, vice
president; Palmer Eckhardt, Frost,
secretary, and Herman Junge, treassurer.

M. Stallard has become associated with
the company as manager of its mu
nicipal department.

On Bank Board
James H. Grina has been elected to
the board of directors of the Swift
County Bank, Benson, Minnesota.
Mr. Grina, cashier of the bank, re
places the late J. C. Knight. The elec
tion took place during a regular meet
ing of the directors.

President at Fairmont

Albert E. Fillmore, Jr., was elected
president of the Fairmont, Minnesota,
National Bank, succeeding the late
John F. Haeckel.
Mr. Fillmore has been a member of
County Meeting
the board for several years.
E.
L. Kaffmann, local banker, was The new president was born in St.
elected president of the Faribault Paul. He came to Fairmont with his
County Bankers Association at the an parents at the age of 12, and has been
nual meeting held recently in Minne a continuous resident of the city.
sota Lake. There were 45 bankers
in attendance and all 13 banks in Fari Department Manager
Dean Witter & Company, Chicago
bault county were represented.
The association went on record as investment firm, announces that Sam

CARL L. FREDRICKSEN
President
CLIFFORD L. ADAMS
Vice President

JOHN S. HAVER
Cashier
JAMES L. SMITH
Asst. Cashier and Auditor
KINLEY W. SMITH
Asst. Cashier
BEN E. HOLTDORF
Asst. Cashier
RAWS A. JENSEN
Asst. Cashier

Prior to his recent connection, Mr.
Stallard was in the Chicago office of
White, Phillips & Company. He was
a B17 pilot with the rank of first lieu
tenant in the Air Force during World
War II, and served in the European
theater.

Make Everyone Happy!

WILLIAM C. SCHENK
Vice President
STANLEY W. EVANS
Vice President

SAM M. S T A L L A R D
W ith Dean W itte r & Co.

W hen you use the prompt service of the Live
Stock National Bank for your Sioux City items,
you make your own customers happy, too. For
Sioux City items sent direct to us, avoid costly
delays of more round-about routes.

R. K. DRAPER
Representative

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r t h w e s t e r n Ban ke r. N o v e m b e r , 1953
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Federal Reserve Bank of St. Louis

MEMBER

F E DE RAL

DE POS I T

I NS U R ANC E

CORPORATI ON

Buys Interest
Richard D. Jones, who has been con
nected with the Pipestone, Minnesota,
National Bank the last three and a
half years, has purchased an interest
in the Citizens State Bank of Arling
ton, South Dakota.
Mr. Jones will move with his family
from Pipestone to Arlington and will
assume his new duties November 1st.
He is vice president and cashier of the
Pipestone Bank.

Heads Group Five
W. E. Shoberg, vice president of the
Rapid City National Bank, was elected
president of Group Five of the South
Dakota Bankers Association at a meet
ing held in Rapid City.
Other officers are: W. J. Schoen,
Lead, vice president, and John Baggaley, First National Bank, Deadwood,
secretary-treasurer.
Speakers during the afternoon and
evening sessions included Hugo Carl
son, Pierre, executive secretary of the
State Natural Resources Commission,
and L. Birch, vice president of the
Denver National Bank, who reported
on the current livestock picture.
Carroll Lockhart, president of the
South Dakota Bankers Association,
Watertown, gave a talk on banking in
a changing economy. Carl E. Bahmaier, Huron, executive secretary of
the association, presented the 1953-54
program. Humorist Samuel Ramsay,
Boston, Massachusetts, entertained at
the banquet.

On Advisory Committee
J. A. Johnson, Mt. Vernon, was
elected to represent South Dakota on
the advisory committee of directors of
the Omaha Federal Land Bank.
The election was held at a meeting
of some 100 officials of South Dakota
National Farm Loan Associations.
Alvin Hanson, Artesian, was elected
alternate. Mr. Johnson replaces George
Ernst, Aberdeen.

Visit Deadwood
About 40 directors of the Northwest
Bank Corporation were in Deadwood,
South Dakota, recently on the first lap
of a three-day convention trip.

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The directors were honored guests
at a luncheon at Deadwood and trav
eled to Sylvan Lake later that after
noon. Following a dinner there, the
group was entertained with a special
performance of the Trial of Jack Mc
Call.

50 Years
Lyle L. Branch completed his 50th
year with the First National Bank of
Pierre, South Dakota, recently, and
friends planned a dinner to observe
the occasion.
Mr. Branch started as a bookkeeper
in the bank in 1903 after he was gradu
ated from high school. He has been
president of the bank since 1951.

Charter Approved
An application for charter for a new
bank at Big Stone City, South Dakota,
has been approved. With the raising
of necessary capital stock the depart
ment of banking and finance at Pierre
announced the approval after the bank
has a common capital of not less than
$25,000. The manager to be employed
as executive officer must be satisfac
tory to the commission.

In Watertown Bank
David G. Paterson, Jr., has accepted
a position as the farm loan member
of the staff of the Farmers Merchants
Bank of Watertown, South Dakota.
After Mr. Paterson had completed
service in the Navy during World War
II, he accepted a position in State Col
lege and later took over the old Pater
son homestead, long operated by an
uncle. Along with his farming opera
tions he also taught one of the veteran
on-the-farm programs at De Smet.

Andrew Kopperud
Andrew Kopperud, 73, former presi
dent of the Farmers and Merchants
Bank of Watertown, South Dakota,
died there recently.
He was a former president of the
South Dakota Bankers Association
and last spring ended a year’s term as
governor of the 175th District of Ro
tary International, an area covering
South Dakota and parts of Iowa, Min
nesota and Nebraska.

A native of De Smet, he served for
17 years as vice president and treas
urer of the Federal Land Bank and
Intermediate Credit Bank of Omaha.
During his residence in Omaha, he
was chairman of the agriculture com
mittee of the Chamber of Commerce.
He formerly lived in Webster and
Lake Preston.
His activity in the banking field in
cluded a term as a member of the
executive council of the American
Bankers Association.

Stdte Bank Examiner
Leo Olson, Sioux Falls, South Da
kota, has been appointed a state bank
examiner by Superintendent of Banks
Roy Fenner.
Mr. Olson had been associated for
35 years with the Northwest Security
National Bank in Sioux Falls. He
retired recently as assistant cashier.

S io u x F a ils
T HE Third Annual Livestock Round
up conducted by the Northwest Se
curity National Bank was attended by
approximately 125 bankers and com
mission men from South Dakota, Iowa
and Minnesota.
Speakers were Tony Westra, vice
president and agricultural director of
the bank; Dr. Max Meyers, chief of
the agricultural economic division of
South Dakota State College, Brook
ings; Rex Beresford, livestock special
ist from Iowa State College, Ames, and
Don Cunningham, executive secretary,
Sioux City Livestock Exchange, and
well known market news commenta
tor.
% * *
Northwest Security National Bank

clerked the ninth annual national Co
lumbia sheep sale held at the Sioux
Empire Fairgrounds.
* *
Paul Batcheller, a director of NorthWest Security National Bank, was
re-elected to the Chamber of Com
merce board of directors.
* * * '
T. N. Hayter, vice president of the
First National Bank, was elected treas
urer of the Sioux Falls Taxpayers
Association at its annual meeting.
* * *
A. M. Sprague, head teller at the
First National Bank, was taken ill
while on vacation in Montreal, Can
ada, and was taken to the Montreal
General Hospital. Doctors said he
might be hospitalized there for a
month.
* * *
Local bank clearings dropped from
$26,740,255 in September, 1952, to $25,033,795 in September, 1953.—The End.
Northwestern Ban ker, N o v e m b e r , 1953

South Dakota N e w s

Anniversary Brochure
George A. Malcolm, president of the
Drovers Banks in Chicago has sent
out a beautiful brochure published
in commemoration of the 70th anni
versary of the founding the Drov
ers National Bank. It describes in
chronological fashion the history of
the Drovers Bank since its opening on
Lincoln’s birthday, February 12, 1883,
when total deposits on that momen
tous day were $499.98.
Today the Drovers National has
$95,000,000 in deposits and the Drovers
Trust and Savings has in excess of

$31.000.000 on deposit.
This booklet is profusely illustrated
throughout with art work and photo
graphs, most of it being printed in a
soft green or printed on a soft green
background, which lends much to the
appearance.
Without detracting in any way from
the balance of the interesting facts
and anecdotes in this brochure, one
of the highlights definitely is the sec
tion titled “ Twelve Eventful Years.”
In it are recorded in fascinating liter
ary style the several exciting and elec
trifying periods which officers and

directors of the Drovers Banks went
through, starting with New Year’s
Day, 1922, when financial problems of
the day necessitated a sale of principal
interests in the bank. This was
smoothly handled by then President
William C. Cummings and then Cash
ier George A. Malcolm (now presi
dent), with the bank remaining in a
sound condition. Subsequent years
brought more emergencies, including
the enforced bank “holiday” of 1933,
after which the Drovers Banks re
opened immediately with an excellent
record.
The crowning blow of the “Twelve
Eventful Years” came May 19, 1934,
when a disastrous fire destroyed the
Drovers Banks and a number of sur
rounding buildings in what was de
scribed as Chicago’s worst fire since
the epic Chicago fire of 1871.
The Drovers expressed confidence in
its customers by operating “on faith”
for five days until bank vaults could
be opened and permanent records
checked. Contents of the five vaults
were intact and it was learned that in
the five days of operating “on faith,”
90,000 checks had been cashed, rang
ing from $1.17 to $150,000, but only
$1,500 had been paid in overdrafts, all
of which was subsequently collected.
In the meantime, savings deposits
were up $200,000 and commercial de
posits were up $1,000,000!
In the 19 intervening years Drovers
Banks resources have increased five
times.

PUBLIC RELATIONS . . .
(Continued from page 20)
Lincoln, vice president, The Puget

NORTHWEST SECURITY
NATIONAL BANK
of Si oux Fal l s, South Dakota
S o u t h D a k o ta ’ s L e a d in g B a n k
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 s it In su ra n ce C orporation

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Federal Reserve Bank of St. Louis

Sound National Bank, Tacoma, Wash
ington and Wilson Parfitt, assistant
vice president, First National Bank,
McKeesport, Pennsylvania.
For two-year term: E. T. Hetzler,
assistant vice president, Bankers Trust
Company, New York City.
For three year terms: John P.
Anderson, vice president, First Nation
al Bank & Trust Company, Paterson,
New Jersey; John J. Ahearn, manager,
public relations, American Security
and Trust Company, Washington, D.
C.; J. A. Ansley, vice president, The
Lee County Bank, Fort Myers, Flor
ida; Carl A. Bimson, president, Valley
National Bank, Phoenix, Arizona; Dan
W. Hogan, Jr., executive vice presi
dent, City National Bank & Trust
Company, Oklahoma City, and John
T. Williams, vice president, The Bankette Company, Boston, Massachusetts.
To be re-elected by the board are
Preston Reed, executive vice presi
dent, and Lucy V. David, secretary.
Executive offices are in Chicago.

Departmental

Every phase of banking had its own

South Dakota News
departmental discussion, but one
which received an accolade for its
presentation and extreme interest was
given by Gaylord A. Freeman, Jr., vice
president, First National Bank of Chi
cago, on the subject “ Building Bank
Correspondent Business Through the
Development of Mutually Beneficial
Correspondent Relationships.”
Mr. Freeman used charts to illus
trate his points. Many questions
which followed indicated how vitally
interested all those present were in
his subject.

President's Address
William B. Hall, retiring president
of the F.P.R.A., and vice president of
The Detroit Bank, Detroit, in his ad
dress to the convention said in part:
“ If we expect continued acceptance
of our product, we must channel our
efforts as individuals—as an associa
tion—to assist in procuring an ade
quate bank staff.
“How serious is the problem? You
be the judge!
“ In 1933 we were wholesalers of
credit, employing 281,000.
“ In 1953 we are department stores
of finance, employing 500,000—serving
more than 90 million depositors.
“ In 1933 and prior years we at
tracted the cream of the employment
crop. We were in a buyer’s market,
we could select with care.

“ In 1953 high schools and colleges
report very few students interested in
banking. To secure people, we have
had to lower employment standards.
“ In 1933 and prior years there was
little turnover.
“ In 1953 turnover in many banks
was in excess of 50 per cent—the na
tional average in 1951 was 30 per cent.
“ Tellers, bookkeepers, proof clerks
and the balance of staff are necessary
to provide good service. Even more
important, however, is the need for
management.
“ The change in character of banking
from wholesale to retail, the numeri
cal increase in depositors, staff and
customers, has increased the require
ments for number and quality of the
management group.
“ Human relations is our field. By
sharing ideas, by reviewing programs
already in process, by applying the
tested sales techniques with which we
work every day we can develop the
best selling program any industry has
ever presented to high school and col
lege graduates.
“That is our real challenge today!
“To sell—rather, to resell—banking
as a profession.
“To secure a quality staff that can
produce the quality of service the cus
tomer expects; the quality of service
of which we are proud.”—The End.

How
to
turn
a

MINUS
into a PLUS

S o m e t i m e s , w h e n a g o o d c u s
to m e r w a n t s a c o m m e r c i a l lo a n
it lo o k s a s if y o u 'll h a v e to turn
him d o w n . If y o u d o , y o u m a y
b e m in u s a c u s t o m e r , a l o a n
a n d a p r o f it.
M a n y b a n k e r s h a v e s o lv e d
th is p r o b l e m b y s u g g e s t i n g a
f i e l d w a r e h o u s e l o a n on th e
c u sto m e r's in v e n to ry . U n d e r

§
1

th is p l a n , D o u g l a s - G u a r d i a n

WE BREAK A BOTTLENECK
M achines create bottlenecks in a

factory whenever they fail or whenever
their capacity is overtaxed. In our
business, the casting of type has for
years constituted a potential bottleneck
because of the unprecedented growth
in the use of imprinted checks. If we
had continued to set type manually
for Personalized Checks, as we had
to do not so many years ago, we now
would be operating nearly three times as
many machines as actually are in use.
Fortunately, about ten years ago we
began to install "automatic teletype
setters” which, thru themedium ofholes
cut in a paper tape, actuate the keys on
the typecasting machine at aspeed nearly
three times as fast as could be done
manually by a good operator. These
machines proved to be lifesavers, but
they were too limited with respect to
selection to cast the type needed for busi
ness checks. We decided, therefore, to
attempt to enlarge the scope of the units.
N ow, after three years of study and
experimentation, we are happy to report

i s s u e s w a r e h o u s e r e c e i p t s on
th e b o r r o w e r 's m e r c h a n d i s e

that we have installed our first
high-speed tape operated unit that will
cast two styles of type in seven sizes,
out of four separate magazines, thus
enabling us to almost triple our machine
output. This does not necessarily mean
that our labor costs have been cut
two-thirds, because other factors tend
to increase contributory costs, but it
does mean that we can push nearly three
times as many lines thru a typecasting
unit, thus providing a cushion that
insures faster service in a department
which otherwise might bottleneck our
entire production.
To the best of our knowledge, this
new unit is the only one of its kind in
operation anywhere and our only
problem now is to get more of them.
We always have to buy six of everything
to keep our facilities up to date, and
sometimes we get impatient because our
funds will not permit immediate capital
expenditures in such large amounts, but
as soon as we can we intend to equip
all of our plants with this latest device.

w ith o u t m o v in g it o f f his p r e m
ise s. R e s u lt : Your c u st o m e r gets
his m o n e y —y o u r b a n k gets t w o
f o l d s e c u r i t y (t h e w a r e h o u s e
r e c e i p t s and the m e r c h a n d i s e )
a n d , of course, you keep a cus
t o m e r p lu s h is g o o d w i l l a n d
the p r o f it on his l o a n .

¡~ DOUGLAS-GUARDIAN
WAREHOUSE CORPORATION
118 N . F r o n t S t r e e t
N ew

O r le a n s , L a .

Please have your nearest representative call
on me.

Nam e of Bank_________________________________________
Address_________________________________________

Manufacturing Plants at:
1

Your Nam e and T itle________________________________

CLI FTO N, PAOL I, CLE V E LA ND, CHICAGO, KA NS A S C ITY, ST. PA UL

CHECK PRINTERS
cO n e .

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O F F IC E S

P R IN C IP A L

C IT IE S

i------------------------------------------------ j
Northwestern Banker. November, 1953

When it comes to financing oil business opera
tions or an expansion program, the specialized
services of National Bank of Tulsa include a
friendly interest in your customers’ problems and
the business experience, understanding and re
sources to help you meet their needs.

i nh

ill

ip p p m M

The officers and directors of NBT have a prac
tical knowledge of both the operations and finan
cial requirements of the oil business, including
petroleum engineering, drilling operations and the
production, storage, refining and transportation of
oil. Next time your customers want an oil loan,
contact "‘ The Oil Bank of America” for this spe
cial correspondent service.

r fh ji (D ill $ G M k o l C im M c a

N a t io n a l B a n k o f T u l s a
Offering Complete

Banker. November, 1953
Digitized Northwestern
for FRASER
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ban kin g and

T rust Services

M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t i o n

X ori li D akota

NEWS
S H A R P E PR U ETZ

W ATTAM
S e cre ta ry

P r e s id e n t

Fa rg o

K u !m

O w ners H o ld " O i l "
}

WNERS of oil lands in the Wiliston Basin were the “serving
O
committee” on October 25th, when a
free barbecue was held in connection
with an oil discovery dedication pro
gram at the Clarence Iverson well
site, south of Tioga, North Dakota.
The servers were those who were
wheat farmers in the area before the
Iverson well flowed oil in April, 1951.
They provided the barbecue, were
hosts for the meal, and donned chef’s
aprons to do the serving. Each farm
er on the committee wore an apron
on which his name was stamped.
According to Clifford Hansen, chair
man of the barbecue committee, who
has a few oil wells himself, more
than 1,600 pounds of beef was pur
chased and prepared for the event.
He and Olaf Giske, another farmer
with an oil well, organized the bar
becue.
The dedication ceremony took place
at the site of the original oil discovery
at 3:00 p. m., with the president of
Ameriada Petroleum Corporation, Al
fred Jacobsen, giving the dedicatory
address.
A monument was unveiled and pre
sented by the governor of North Da
kota, Norman Brunsdale.
Other speakers at the dedicatory
ceremonies in c lu d e d Congressmen
Usher L. Burdick and Otto Krueger
and Senators W. M. Langer and Milton
L. Young.

Directors in Fargo
Robert S. Macfarlane, president of
the Northern Pacific Railway Com
pany, was elected a director of the
First Stock Corporation at the board’s
meeting held recently in Fargo, North
Dakota.
At the same meeting directors
amended the corporation’s by-laws so
that the anunal meeting of stockhold
ers and directors will hereafter be
held the third Wednesday of April
each year instead of the second Tues
day in February.
E. O. Jenkins, First Bank Stock
president, indicated that the corpora
tion’s annual reports will continue to
reach stockholders by mid-February.

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Federal Reserve Bank of St. Louis

After the business session the meet
ing closed with election and installa
tion of officers for the ensuing year.
I. E. Giedt, executive vice president
of the Farmers State Bank of Richardton, was elected association president,
and John A. Kampf, assistant cashier
of The First National Bank of Dick
inson, was elected secretary-treasurer.

Deferring the annual meeting date to
April, he said, is designed to give
stockholders an opportunity to study
the year’s operations before partici
pating in formulation of plans for the
year ahead.
The trip to Fargo, Grand Forks and
East Grand Forks marks the fourth
consecutive year in which the corpo
ration directors have held their meet
ing in communities, other than the
Twin Cities, served by one of the affili
ated banks.

New Cashier
The new cashier of the Citizens
State Bank, Mohall, North Dakota, is
a banker in name as well as profes
sion.
His name is John Davis Banker,
who came from Park River. Some
years ago he was employed in Minot,
where he had his first bank job.
His appointment was announced by
E. L. Hubbard, president of the bank.

Again Receives Award

For the 22nd consecutive year North
Dakota has won the 1,000-point rating
of the American Bankers Association
in its national agricultural program.
Fred A. Irish, chairman of the board
of the First National Bank and Trust
Goes to Tioga
G.
C. Anderson, cashier of the Bank Company, Fargo, and chairman of the
at Rhame, North Dakota, for the past North Dakota Bankers Association ag
two years, takes over management of ricultural committee, has been notified
a bank at Tioga the first of November. of the award by A. G. Brown, director
J. R. Pendergast of Bowman will of the A.B.A. Agricultural Commis
take over the duties of cashier of the sion.
The rating program was initiated 25
Rhame bank.
The job at Tioga comes as a big years ago to measure the extent that
advancement to Mr. Anderson, as he banks of the nation are carrying out
will be in complete charge of the fair an effective agricultural program. Mr.
ly new bank there in the oil boom Brown wrote:
“We have taken particular note of
area. Clarence Hestekin, f o r m e r
Rhame banker, and Ralph Perrin are the cooperation in the soil conserva
large stockholders in the Tioga bank. tion program and feting the award
winners, and the agricultural short
course scholarship program. Also the
Tri-County Meeting
response
of your committee members
The annual banquet and business
meeting of the Tri-County Bankers and county key bankers rated among
Association was held at Langdon, the highest of all the states. All this
North Dakota, according to Myles L. is very fine and we congratulate you
and your committee on the construc
Johnson of Langdon, president.
About 40 people from the 13 mem tive agricultural activities of your
ber banks in Pembina, Walsh and association and its members.”
Cavalier counties attended the meet
Stock Team to Chicago
ing.
North Dakota’s 1954 champion 4-H
At the business session election of
officers was held. Present officers are livestock judging team will take on
Mr. Johnson, president; R. W. Clapp of national competition in Chicago in
Adams, vice president, and Dorian La- November when it competes with oth
er state winning teams during the
Rocque of Walhalla, secretary.
International Livestock Exposition.
The team, from Renville county, won
County Bankers Elect
The annual meeting of the Stark the northwest district contest in Mi
County Bankers Association, includ not before taking state honors in
ing banks in Adams, Bowman, Dunn, Fargo, September 3rd.
Placings of the three other district
Golden Valley, Hettinger, Morton and
Stark counties, was held at Hettinger, teams in the Fargo contest were
North Dakota, with L. C. Mensing, Dickey, Cavalier and Mercer, in that
executive vice president of the First order.
Members and coach of the Renville
National Bank of Hettinger, president
county team are Earl and Wilfred
of the association, presiding.
Nort hwest ern Banker, November, J953

North Dakota N e w s

Sauer and Robert Vanerstrom, all of
Carpio. Robert Lee, Carpio, was al
ternate on the team. Kenneth W.
McCoy, Mohall, Renville county ex
tension agent, is coach.
High individual scorer in the state
contest was Richard Schmitz, Oakes.

Suit Dismissed
Federal Judge Harold L. Medina
last month set forth in a 115,000-word
opinion, probably the longest in Amer
ican history, his reasons for dismiss
ing the government’s anti-trust suit
against 17 investment banking firms.
He had announced the dismissal
in a brief memorandum September
22nd and now the 423-page legal tome
spells out why.
Judge Medina indirectly chided the
government for bringing the suit, es
timated to have cost the defense
$7,500,000 and the government from
$1,500,000 to $3,000,000.
He said the government had a “ fun
damental factual misconception of the
way investment banks in general func
tion and have functioned for many
years.”
The judge expressed doubt that the
suit would have been brought if all
the evidence produced by the defense
had been available to the government
before the complaint was filed.
Judge Medina filed his opinion al
most six years after the government
filed the complaint on October 30, 1947.
Trial began November 28, 1950, and
ended last May 19th, after 309 court
room days.
The judge said some of the govern
ment arguments in the case “would
indeed make the law an ass.”

Resigns
Mrs. Alice Paris, assistant cashier at
the Citizens State Bank, in Mohall,
North Dakota, has submitted her res
ignation, effective December 31, 1953.
Mrs. Paris went to work there Janu
ary 2, 1937.

Ag Short Course
The Agricultural Short Course at
North Dakota Agricultural College for
the ensuing year commences January
4, 1954, and runs for eight weeks. The
executive council at the Minot con
vention, and resolutions adopted, en
dorsed the continuance for another
year of sponsoring of students by
North Dakota banks, either singly or
in conjunction with other bankers.
Last year North Dakota banks spon
sored 50 students and there were 74
additional students, who were not
sponsored, taking the course.
It is the hope of association officers
that banks throughout the state will
again participate in this program.

“ The Royal
put us in touch
with the
right people”

and

780

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Northwestern
Banker. November, 1953

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

Reginald Thompson
Reginald Thompson, 46, a vice pres
ident of the Montana National Bank,
Billings, died recently at a Billings
hospital. He had been a patient for
three weeks. Death was attributed to
cancer.
Mr. Thompson came to Billings in
1940 as a representative of the Uni
versal Credit Corporation. He entered
the armed services March 4, 1942, serv
ing as a technical sergeant with the
93rd Ferrying Squadron in the AsiaticPacific theater.
He was discharged in 1945 and re
turned to Billings. He became associ
ated with the Montana National Bank
in 1947.

Daly Bank and Trust Company,
Anaconda, Montana, noted its 70th
anniversary in the community recent
ly. Many telegrams and letters of
congratulations were received by J. L.
Kelly, president, and E. L. Kunkel,
Jr., executive vice president. Included
was one from the Wells Fargo Bank
and Union Trust Company, San Fran
cisco, one of the first business asso
ciates of the bank in the days of
Marcus Daly.
The bank was founded six years
before Montana became a state and
the year the townsite of the city was
completed. It was first known as the
Hoge, Daly & Company.

C e n tra l

P a r is .

THE R O Y A L B A N K
OF C A N A D A
N ew

Mr. and Mrs. John Quickenden re
cently entertained the entire staff of
the Northwestern Bank, Lewiston,
Montana, at their country home. An
outdoor picnic had been planned and
prepared but was foiled by a pouring
rain. The 35 guests were all happily
accommodated inside.
The Quickenden’s grounds were
much admired for they offer innumerable varieties of flowers, a beautiful
lawn and a fine vegetable garden.

Celebrate 70 Years

Through more than
700 Canadian branches, the Royal Bank
offers you direct and helpful access to whatever
aspect of Canadian business may interest you or
your customers. Address inquiries to our
Business Development Dept., at the
Bank’s Head Office in Montreal.
O ver

Entertain Bank Staff

Building Opens
Grand opening of the new Fairview
Bank, Fairview, Montana, was held
recently.
Construction of the one-story brick
and tile structure was started last
March. The building, 30x70 feet, is
equipped with recessed lighting, acous-

Montana N e w s

tical ceiling and a modern heating
plant.
Vault space includes a standard
bank vault, safety deposit vault and
storage vault. New counters and fix
tures have been added.
The bank was organized in 1941 by
the late Leo J. Lukanitsch and, ac
cording to A. J. Huber, executive vice
president and cashier, the institution
has a total footing of $1,087,000 for its
12 years of operation. The bank’s cap
ital and surplus totals $50,000, with
undivided profits amounting to $16,820.
The Fairview Bank serves the Yel
lowstone Valley area on the MontanaNorth Dakota line.

T h in k . . FIRST.. and

th e

le t ELMO THOMPSON,

MAGIC EMPIRE

Forums for Women
A series of five weekly lectures, de
signed to familiarize women with fi
nancial and legal matters, is being
sponsored by the Midland National
Bank, Billings, Montana. They started
last month.
The same lecture will be given
twice daily, at 2:30 p. m. and at 8:00
p. m.. in order that a wide audience
may be reached, bank officials said.
Present accommodations are suitable
for 200 women at each session.
The periods will include 55 minutes
of lecture, a five-minute break and a
30-minute question period.
G. Sidney Houston, vice president of
the First Service Corporation of St.
Paul, was the speaker at the first
meetings.

JOE BYRD, HARRY LANE,
DICK WAGNER o r DEAC
RHODES h e l p

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TRANSIT SERVICE

□

SAFEKEEPING

□

INVESTMENTS

□

EXCESS LOANS

□

CURRENCY

□

BANK OPERATIONS

□

PERSONAL

□

COLLECTIONS

□

CREDIT INFO

□

FOREIGN SERVICE

□

TRUSTS

Farm Representative

John Reichel, a native of Montana,
has been appointed agricultural rep
resentative of the First National Bank,
Great Falls, it was announced by
E. F. Galt, president.
The appointment is consistent with
adopted practices of banks in assign
ing full-time representatives to serve
farming and ranching interests, Mr.
Galt said.

andin the

OIL INDUSTRY
It’s BOTH

Remember, the other
38 o fficers of our
bank, many of them
specialists in varied
fields, give help to our
correspondents. Just
. . "Think . . F I R S T ’

ñs
/»y
PROFITABLE

and
PLEASANT

Elected President
Joseph W. Chivers of Helena, 91year-old veteran of the Montana bank
ing "and loan business, was elected
president of the Montana Building
and Loan League.
Election of officers and group dis
cussions concluded the organization’s
29th annual convention.
Mr. Chivers, former vice president,
succeeds Stanley O. Snyder of Havre.
Jack F. Hoon, Missoula, advanced
from second vice president to first vice
president. J. George Graham of Great
Falls was elected second vice presi
dent and Paul A. Johnson, Great Falls,
was re-elected secretary-treasurer, to
begin his eighth consecutive term in
that office.

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

NOW! . ,
TRANSIT
for Faster

„ .

____________ _

»-

t h e f ir s t

# Service

NATIONAL

BANK

AND TRUST C O M P A N Y

O F
M e m b e r

F e d e r a l

D e p o s i t

I n s u r a n c e

T U L S A
C o r p o r a t i o n

Northwestern Banker, November, 1953

66
COMPLETE CORRESPONDENT FACILITIES •

COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES •

COMPLETE CORRESPONDENT FACILITIES •

COMPLETE CORRESPONDENT FACILITIES

COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES •

COMPLETE CORRESPONDENT 'FACILITIES •

COMPLETE CORRESPONDENT FACILITIES •

COMPLETE CORRESPONDENT FACILITIES *

COMPLETE CORRESPONDENT FACILITIES

•

Northwestern Banker, November, 1953

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

A nn inaici* Proif n a n fo r
ôtith A n nual Convention
O f N ebraska H ankers
Will Meet at Hotel Fontenelle in Omaha, November 10-11;
Robert L. Garner Announced as Final Speaker

S IX top-ranking speakers will make to Guaranty Trust in New York as
their appearance before the 56th assistant treasurer. In 1928 he was
annual convention of the Nebras made treasurer and in 1929 was elect
ka Bankers Association at Hotel Fon ed vice president.
He served as vice president and
tenelle in Omaha, November 10th and
11th. Association President William treasurer until 1943 when he resigned
F. Wenke, in announcing the com to become financial vice president and
pleted program, revealed that the final a director of General Foods Corpora
speaker the second day of the con tion where he remained until his ap
vention will be Robert L. Garner, vice pointment as vice president of the
president of the International Bank International Bank in February, 1947.
Mr. Garner has been a member of
for Reconstruction and Development.
Speakers announced earlier are: the Banking Board in the state of
Everett D. Reese, president of the New York and in 1942 helped organize
American Bankers Association, who the First War Loan Drive in the Sec
will be making one of his first state ond Federal Reserve District. He was
association appearances since his elec born in Bolton, Mississippi, was grad
tion in September; Guy E. Reed, well- uated in 1916 from Vanderbilt Uni
known executive vice president of versity in Nashville, Tennessee, and
Harris Trust and Savings Bank, Chi later studied journalism at Columbia
cago; Dr. Kenneth McFarland, Tope University.
The Nebraska Club of the School
ka, Kansas, an educational consultant;
of
Banking will hold its breakfast on
Frank W. Mueller, manager of the
Sioux Falls district of the Chamber Wednesday morning. A luncheon is
of Commerce of the United States, scheduled again for Wednesday noon,
and D. Emmert Brumbaugh, Clays- after which Mr. Garner will be the
burg, Pennsylvania, who is president final speaker.
The complete program follows:
of the Independent Bankers Associa
tion.
Mr. Wenke, who is president and
cashier of the Pender State Bank, has
been assisted during the past year by
W. H. Munger, president of the First
National Bank in North Platte, as vice
president; James H. Moore, vice presi
dent of the Omaha National Bank, as
treasurer, and Carl G. Swanson, Oma
ha, as secretary.
Mr. Garner’s appearance will bring
to the Nebraska convention for the
first time a representative of the im
portant International Bank for Re
construction and Development. Mr.
Garner has a lifelong background in
finance. He began work in 1919 for
the Guaranty Trust Company of New
York, later transferring to the Guar
anty Company where he worked for
five years on both foreign and domes
tic loans. After two years in the
financial department of the Continen
R O B E R T L. G A R N ER
tal Insurance Company he returned
N e b ra sk a co n ven tio n sp ea k er

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

W IL L IA M F. W E N K E
P re sid e n t
B a n k e rs A ss o c ia tio n

N e b ra sk a

Monday, November 9th

P. M.
4:00 Executive Council meeting.
5:30 Social Hour — Past Presidents
and Executive Council.
6:30 Executive Council dinner.
6:30 Annual dinner — Past Presi
dents’ Club.
7:009:00 Registration—Mezzanine, Fon
tenelle Hotel.
Tuesday, November 10th

A. M.
9:0012:00 Registration—Mezzanine floor.
Noon
12:00 Luncheon — Delegates, Ball
room.
P. M.
12:30 Ladies’ Luncheon and Enter
tainment — Omaha Athletic
Club.
1:30 Convention Session—Ballroom,
Fontenelle Hotel. Presiding, W.
F. Wenke, president, Nebraska
Bankers Association.
Invocation.
Address of welcome.
Response and President’s Ad
dress—W. F. Wenke.
Address — Everett D. Reese,
president, The American Bank
ers Association; president, Park
National Bank, Newark, Ohio.
Address—Guy E. Reed, execu
tive v i c e president, Harris
Trust and Savings Bank, Chi
cago.
Annual Meeting — Nebraska
Conservation Foundation, Inc.
5:30 Social Hour—Delegates and la
dies as guests of the banks of
Omaha, Black Mirror Room,
Fontenelle Hotel.
6:30 Convention Banquet — Ball
room, Fontenelle Hotel.
Northwestern Banker, November, 1953

Nebraska News

Entertainment — “The Ker
nels.”
Address — Dr. Kenneth McFar1 a n d, educational consultant
and lecturer to General Motors;
educational director for Ameri
can Trucking Associations, Inc.
Dancing.

ber of Commerce of the United
Election of officers of Nebraska
States.
Bankers Association.
Installation of officers.
Election — American Bankers
Association. Presiding, s t a t e P. M.
vice president.
12:30 Luncheon — Delegates and la
Remarks — Thomas C. Horn,
dies, Ballroom, Fontenelle Ho
president, N e b r a s k a Club,
tel.
School of Banking, University
1:45 Address — Robert L. Garner,
of Wisconsin; executive vice
Washington, D. C., vice presi
president and cashier, The
dent of the International Bank
First N a t i o n a l Bank, Hay
for Reconstruction and Devel
Springs, Nebraska.
opment.
Address — D. Emmert Brum
Adjournment.—The End.
baugh, president, The Inde
pendent Bankers Association;
president, The First National Farmer Banquet
The Winside, Nebraska, State Bank
Bank, Claysburg, Pennsylvania.
Report of Convention Commit sponsored a Farmer-Feeder meeting
last month in the Winside Auditorium.
tee on Resolutions.
Report of Convention Commit Approximately 250 attended from Win
side and surrounding communities.
tee on Nominations.
E. T. Warnemunde, vice president
and cashier of the Winside bank, wel
comed the group. C. B. Misfeldt, as
sistant cashier, acted as toastmaster.
William Prince, a former livestock
feeder and farmer in the Winside area,
was interviewed.
Guest speakers of the evening were
Don Cunningham, secretary of the
Stock Yards Company in Sioux City,
and John M. Shonsey, vice president
of the Livestock National Bank, of
Omaha.

Wednesday, November 11th

A. M.
8:00 Breakfast — Nebraska Club,
School of Banking, University
of Wisconsin.
9:00 Registration—Mezzanine floor.
9:30 Convention Session—Ballroom,
Fontenelle Hotel. Presiding,
President W. F. Wenke.
Address — Frank W. Mueller,
manager, Sioux Falls District,
Northwestern Division, Cham-

G EN E R.A L LEDGER.

YOUR BANK

TRANSIT S E R V IC E

SA FE

70th Anniversary

K E E P IN G

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INVESTM ENT ADVICE

/EX C ES S
CURRENCY

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B A N K OPERATI ONS A D V I C E
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C O L L E C T I O N S
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IN FO RM ATIO N

F O R E IG N DEPT. S E R V IC E

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The First National Bank of Fairbury, Nebraska, which has been at
the same downtown corner from the
beginning, celebrated its 70th birthday
last month with an open house, prizes
for the oldest cancelled check from
the bank, the oldest bank statement,
the oldest cancelled note, and the old
est letter from the bank.
The bank reserved both theaters for
the afternoon and evening. Open
house visitors received admissions.
John Buckstaff was the first presi
dent. In 1912 Isaac and Luther Bon
ham, who owned the Bonham Nation
al Bank, bought controlling interest
in the First National, and the follow
ing year the two banks were consoli
dated. Luther Bonham became presi
dent in 1920, after the death of his
father. He is now board chairman,
with Ivan C. Riley, president.

ced e úÁ^e

B A N K S

FIRSTmXI0 NAL BANK

A CONFIDENTIAL,
F O U N D E D ON 2 5

B a n k e r s S er v ic e C o m p a n y
HENRY H. BYERS. Pres
Lock Box 1435
DES MOINES 5 IO W A

MEMBER

FEDERAL

DEPOSIT

Northwestern Banker, November, 1953

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

INSURANCE

CORPORATION

o
B„°dusGoH
L5
PERSONAL SERVICE
Y EARS EXPERIENCE

N B. SHAFFER. V P

E. C. UNTIEDT, V P .
Lock Box 1421
COLORADO SPRINGS COLO.

Nebraska News

Tour Crete Bank
A group of students from Rural
School District 1 toured the Crete,
Nebraska, State Bank in observance
of “Know Your Bank Week.”
The nine students were accompa
nied by their teacher, Mrs. Matt Ren
ner, and Mrs. Clarence Pracheil.
They were shown through the bank
vaults and bank offices, heard a de
scription of the machinery used by
the firm and heard a discussion on
how a bank operates.
The highlight of the tour came when
they were shown a one thousand dol
lar bill.
Thomas J. Aron, bank president,
said several other rural district school
children were expected to tour the
bank.

In Size
In Service
In St. Joseph

Soil Conservation
With emphasis on Nebraska soil
conservation districts, as proclaimed
by Governor Robert Crosby of Ne
braska, the Central National Bank of
Columbus and Farmers State Bank of
Humphrey have each purchased affili
ate memberships of $25 in the Shell
Creek Soil Conservation District.
These contributions to the district
will be used to promote activities and
further the assistance to the district
cooperators. Directors of the Shell
Creek district voiced their apprecia
tion for the interest shown by these
firms.

FIRST NATIONAL BANK
In S t . J o s e p h , M o.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Chartered by Congress 1890

Hang Murals
Two attractive murals have been
hung in the lobby of the First Na
tional Bank of Tekamah, Nebraska.
The murals are about 40x60 inches
in size. One is an airplane view of
the city of Tekamah and the other is
a view of Lake Quinnebaugh.
They add much to the decorative
attractiveness of the bank room.

If the Shoe Fits . . .
There’s an old saying: People take you

In New Building

at your own valuation.

The Guardian State Bank, Alliance,
Nebraska, is doing business at its new
location, 224 Box Butte Avenue. The
beautiful new granite structure is not
completed but the bank announced it
was necessary to move so heating and
other facilities could be given atten
tion by workmen.
Roy Abbott, executive vice presi
dent, said the formal opening of Al
liance’s newest business structure
would be delayed until the entire con
struction job is completed.
The exterior of the building is prac
tically complete but the interior, up
until recently, was still lacking mar
ble fixtures at the teller windows, a
marble railing setting off the officer’s
desk from the lobby, considerable
furniture and drapes.

the reverse of it is true also.

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

It’s true— and
For in

stance, when one of our correspondent
banks tells us we have done a good job
in the transacting of our business with
them, it makes us more anxious than
ever to keep our standards of service
high!

May we serve your bank?

the Inter-State National Bank
LIVESTOCK EXCHANGE BLOG.

j A W

U TK .

AND

GENESEE

STS.

M em ber F e d e ral Deposit Insurance Corporation

Nort hwest ern Banker, November, 1953

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

M eet
S!osés ué
N ebraska
H

OSTS to bankers and other guests
attending the 56th annual con
vention of the Nebraska Bank
ers Association in Omaha Tuesday and
Wednesday, November 10th and 11th,
will be the six metropolitan banks—
First National Bank, Five Stock Na
tional Bank, Omaha National Bank,
Packers National Bank, Stock Yards
National Bank, and the United States
National Bank.

Upper Left
First National Bank
Seated, from the left: J. R. Lauritzen,
vice president; J. T. Stewart, III, senior
vice president; Fred W. Thomas, chairman
of the board; John F. Davis, president, and
O. H. Elliott, vice president.
Standing, from the left: C. K. Voorhees,
vice president; Carl N. Bloom, assistant
cashier; E. T. Tanner, assistant vice presi
dent, and E. N. Solomon, vice president.

< -----------------------------------------------------------

Live Stock National Bank
From the left: R. H. Kroeger, vice presi
dent; Wade R. Martin, vice president; H.
H. Echtermeyer, vice president; Henry C.
Karpf, president; Paul Hansen, vice presi
dent, and Russell A. Loring, assistant
cashier.

< -----------------------------------------------------------

Omaha National Bank
Seated, from the left: Bruce H. Thomas,
vice president, and W. Dale Clark, chair
man of the board.
Standing, from the left: Morris F. Miller,
assistant vice president; Stephen J. Wirtz,
vice president; Clarence C. Jones, assistant
cashier, and John D. Carew, assistant
cashier.
President W. B. Millard, Jr., was unable
to be present Avhen this photograph was
taken.

Omaha
Com ing .7671#
Convention
Groups of officers from these down
town banks are pictured on this and
the opposite pages. Outlying banks
in Omaha are the Douglas County
Bank, North Side Bank and the South
Omaha Savings Bank.

The officers and staffs of these insti
tutions extend a cordial invitation to
out-of-town bankers to visit them
when in Omaha for the convention.

Upper Right
Packers National Bank
From the left: C. A. Jeffrey, vice presi
dent; L. J. Kozeny, assistant vice presi
dent; K. E. Stanley, cashier, and A. L.
Coad, president.

Stock Yards National Bank
Seated, from the left: A. J. Hallas, vice
president; W. A. Sawtell, president, and
John McCumber, vice president.
Standing, from the left: J. P. Krogh,
assistant vice president, and C. A. Masilko,
cashier.

United States National Bank
From the left: Dean Vogel, vice presi
dent; Ellsworth Moser, president; Austin
L. Vickery, vice president, and Harold L.
Potter, assistant cashier.

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

Nort hwest ern Banker, November, 1953

Nebraska N e w s

i P i s c n s s

A f / r i e u l t u r a l

( ' r e d i t

Among bankers who participated in the first agricultural credit conference sponsored
by the Nebraska Bankers Association and held in Lincoln are (from left) : Merl C.
Townsend, vice president, Fremont National, Fremont; R. P. Rinne, First National of
Fairbury, chairman o f the association agriculture committee; W. F. Wenke, president,
Pender State, Pender, association president; Carl G. Swanson, Omaha, association secre
tary; Kenneth A. Tool, executive vice president, First National, Wahoo, and Clarence
A. Peterson, Holdrege.

STEEL BANK
and OFFICE UNITS
to fit your needs
and space.
Tray housing
counter units, tell
er units, account
ing machine desks,
savings tubs, mon
ey buses, double
capacity files and
cycle billing equip
ment . . . insulated
if required.

TRAINED REPRESENTATIVES
IN MOST PRINCIPAL CITIES
_
0 \

Complete Line of TrayBinders, Stands, Record
Handling: and Housing:
Equipment.

Nort
hwest ern Banker, November, 1953
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

“So bankers who assist them with
R URAL banking is entering a new
era with regard to loans to farm loans will need all the scientific
knowledge of farming available to
ers.
This was the keynote of the first adapt loans to their needs,” Mr. Mur
Agricultural Credit Conference held ray said.
at Lincoln by the Nebraska Bankers
Richard Ford, extension economist
Association.
with the University of Nebraska, said
Association President W. F. Wenke farmers have to take greater risks to
of Pender told the 80 bankers who day because it takes more money for
attended that the purpose was to fa present day farming.
miliarize them with the agricultural
He said farmers will need credit to
situation and how it affects credit.
keep up their standard of living and
Of present conditions Mr. Wenke provide for modern farming.
remarked, “There might be some tight
“But if farmers cannot get the cred
ening of credit due to the attitude of
bankers toward the future. Loans it they need from commercial banks,
will be made more carefully and will they will turn to federal lending agen
depend on the individual situation of cies,” Mr. Ford warned.
He said that the institutions which
the borrower.”
W. G. Murray, head of the econom provide the type of credit needed for
ics department at Iowa State College, modern agriculture will be doing the
echoed this “individualized” advice lending business in the next genera
and said this is a “selective-competi tion. Mr. Ford said that some bank
tive” period in which individual cases ers lament the fact that federal lend
will require more study. He said farm ing agencies are in competition with
ers are in an increasingly competitive AG CREDIT . . .
situation.
(Turn to page 82, please)

SanksAA,

and JhciA, JdduiA,
are cordially invited to The Model
Rooms and Furnished House at

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

Omaha

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Federal Reserve Bank of St. Louis

If it pertains to livestock . .
We can serve you.

Nort hwest ern Banker, November, 7953

ventory of bank records, and destruc
tion of some of the records, will ap
pear in the December Northwestern
B anker.)
*

Donald H. Ostrand has been named

assistant vice president of the North
Side Bank of Omaha. He had been
associated with the First National
Bank of Omaha since 1950.
He is a native Omahan and a 1948
graduate of the University of Nebras
ka. In World War II he was a B-24
pilot in the Fifteenth Air Force in
Italy.
*

ISS AN NA T. OLSSON of the

Live Stock National Bank of
Omaha had an exciting week recently.
All in the space of a few days she
was named “Outstanding Woman of
the Year”
the Omaha Business and
Professional Women’s Club and she

Miss Olsson has been manager of
the savings department of the bank
and has had more than 40 years of
business experience.
The bank advancement was an
nounced by President Henry C. Karpf
of the Livestock National.
*

M IS S A N N A T . O L S S O N
E le c te d a s s is ta n t c a s h ie r at
L iv e Sto c k N a tio n a l B an k of O m aha

also was named assistant cashier of
the Live Stock National.
The club award was presented at
a dinner at the Omaha Athletic Club.

A special display of old bank rec
ords dating back nearly 100 years will
be a feature of an “Open House” be
ing held at the United States National
Bank for bankers and their wives at
tending the Nebraska Bankers Asso
ciation Convention, according to Ells
worth Moser, president. Interesting
records that were written in the care
fully penned style so customary in
banking houses of the 19th century
were uncovered during recent exten
sive revising of storage facilities.
At the same time as the inventory
of records was being taken, a com
plete history of the United States Na
tional and its predecessor banks was
compiled, so that an accurate account
of a century of service to Omaha
would be available when the bank ob
serves its centennial in 1956.
The many historical records that
were uncovered will be on display in
the board of directors’ room during
the Nebraska convention. (A detailed
article outlining the steps taken to re
align storage space, compiling an in

Land prices probably will work low
er for the next five years, but the
long-range trend is upward. That
opinion was expressed in Omaha by
Earl F. Crouse, assistant vice presi
dent of Doane Agricultural Service.
Inc., of St. Louis, Missouri.
He spoke at the annual meeting of
the Federation of National Farm Loan
Associations of the Eighth Federal
Land Bank District.
The Federation elected the follow
ing new executive committee mem
bers: Eon B. Madson, Hampton, Iowa;
A. M. Grubaugh, David City, Nebras
ka; John Ross, Oshkosh, Nebraska, and
Ray Hirscli, Yankton, South Dakota.
*

John R. Cockle, Omaha attorney, has

been named assistant trust officer of
the Omaha National Bank.
The announcement was made by
W. B. Millard, Jr., president of the
bank. Mr. Cockle left the law firm of
Neely, Otis & Cockle to accept the
position.
A native of Omaha, he was gradu
ated from the University of Nebraska
in 1942. After serving as an Air Force
pilot during World War II, he re
ceived his law degree from Creighton
University at Omaha in 1947.
*

The Omaha and Council Bluffs Con
ference of Bank Auditors and Comp
trollers held its first meeting of the

P irst National'
¿Bank oí Omaha
0

Oldest N a t io n a l Bank. F r o m O m aha W est

Digitized forNorthwestern
FRASER
Banker, November, 1953
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corpi

WHERE DO YOU BUY YOUR FEEDERS?

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

'A T

THE

OMAHA

M A R K E T ! . . . I've always found they

have a broader selection of the finest stocker and
feeder cattle from the western range country. I'm
sure of a clear title and accurate weights. You'll
find successful stocker and feeder buyers rely on
the Omaha Market for their replacements and as a
dependable outlet for their fat stock."

Wor/cté ¿ £(r£Sr ù tile Market!
4

U N I O N

STOCK

YARDS

C O M P A N Y

Nort hwest ern Banker, November, 1953

76
Advertisement

"R o ll o f

e b

r a

s k

99B anks

r
on
H

It is a n h o n o r to b e lis te d a m o n g th e H O N O R R O L L B A N K S. It in d ic a te s th a t th e
b a n k has SURPLUS and U N D IV ID ED PROFITS e q u a l to o r g re a te r th a n its c a p ita l
The banks listed on this page are some of the outstanding ‘'Honor Roll” Banks in
Nebraska. B y careful management and sound banking they have achieved this enviable
position. These banks will be especially glad to handle any collections, special credit
reports or other business in their communities which you may entrust to them. Corre
spondence is invited.
TOWN
BANK
Auburn............................ Carson National Bank .............
Aurora....................... ......First National Bank in Aurora..........
Beemer............................ First National Bank.........................
Bennington..................... Bank of Bennington.........................
Bertrand..........................Bank of Bertrand......... .....
Bradshaw....... .................First National Bank............................
Brady...................... .........Bank of Brady........................ .................
Brule................................ Bank of Brule...........................................
Bruning........................... Briming State Bank....................... ....
Brunswick..................... Brunswick State Bank
.... .......
Center......... .....................Center State Bank........................
Coleridge............ .............Coleridge National Bank.......... ............
Culbertson........... ........... Culbertson Bank .... ................................
DeWitt............................. DeWitt State Bank......................... .....
Elgin........ ........................Bank of Elgin..... ..................................... .
Elkhorn....... .........
.... Farmers State Bank.................. ............
Ewing........ .......... .........Farmers State Bank______ __________
Fairbury...........................First National Bank.... ............. .....
Falls City....................... First National Bank...................... .....
Fremont.................. ........ First National Bank___________ ___
Fullerton....... ..................First National Bank..............................
Gallaway......... ...............Seven Valleys State Bank __________
Gibbon........... .................. Exchange Bank .......................................
Gresham.___ ___ _____ Gresham State Bank..............................
Hooper.... .........................First National Bank..............................
Hoskins............................ Commercial State Bank........................
Humboldt........................ Home State Bank ...... ..... ................
Lewellen___________ __ First National Bank_________ ___ __
Lincoln..... ....................... National Bank of ¡Commerce................
Lyons............................ First National Bank.............................
Madrid............................ Security State Bank.............................
Malmo..............................Security Home Bank...............................
Marquette........ ............. First National Bank...............
Maywood__________ ___ Farmers State Bank..............................
McCook............................. First National Bank....
.....
Nehawka......... ................ Nehawka Bank ....... ........... ..............
Norfolk............................ DeLay National Bank.............................
North Platte................. McDonald State Bank............... .............
Oakland........................... Farmers & Merchants National Bank
Omaha...... .......................Live Stock National Bank....... .............
Omaha.... ...................... Omaha National Bank............ .............
Omaha........ .....................Stock Yards National Bank....... ...........
Omaha..----- --------- -------- United States National Bank________
Ord................... ................Nebraska State Bank............................
Pawnee City........ ...........Citizens State Bank................................
Pickrell.......... ..................Pickrell State Bank_____ ____________
Pilger............... ................Farmers National Bank........................
Ponca........ .......................Bank of Dixon County.......... .................
Scribner_____ _____..___ First National Bank of Scribner.......
Spencer........... .................Spencer State B ank.._______ _________
Springview...............
First National Bank________________
Stamford....... .................-Stamford Bank ......................................
Stromsburg............. ........Stromsburg Bank ...................................
Syracuse .......... ............. First National Bank_______________ _
Tekamah-.____ _____ __ First National Bank________ _____ ___
Tilden...-........................... The Tilden Bank.... ................................
West Point..................... First National Bank................
York........... ......................York State Bank__ ____ _____ _______

Scarborough’s planning and service are by-words in
the banking fraternity. They are available to you, along
with the broadest protection at the lowest cost.

Northwestern
Banker, November, 1953

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

OFFICER
John T. Zacharias......
Frank M. Farr..... ........
E. H. Sutherland.........
H. E. Roe......... ............
A. H. Walentine.... .......
L. W. Farquhar...........
Gordon Jones .............
M. H. Adams................
Fred H. Bruning.........
Leonard H a les........ .....
C. T. Britt.....................
James L. Gray.... .........
0. P. Simon...................
R. E. Burkley.... ...........
R. K. Draper, Jr..........
E. F. Saeger...... ...........
Maud Brion ..... ............
Ivan C. Riley__ ___ __ _
G. P. Scholz...... ..........
Wm. N. Mitten....... ......
E. M. Black.... ...............
L. F. Johnson...............
C. A. Brumbaugh.......
Arthur W alford .........
G. H. Looschen.... .........
Ed Kollath ...................
Otto Kotouc, Jr,.........
J. L. Kats.....................
Glenn Yaussi .............
W. C. Heintzelman.....
F. H. Scott...................
Amy H. Houfek...........
D. M. Ferguson...........
R. M. Roach............... .
H. M. Krogh........... ......
Walter J. Wunderlich
J. J. DeLay...................
G. W. Taylor................
Chase C. Neumann.....
Paul Hansen ________
W. B. Millard, Jr........
John McCumber ........ .
Austin L. Vickery___
R. J. Cronk....................
J. A. Barr.....................
1). Reil .........................
Floyd Pope .................
F. R. Kingsbury....... .
A. R. Kuhlman........ .
George Sadlacek ____
H. G. Thorley...............
Wm. F. Pentz.... ........
E. C. Nordlund.............
Eugene Pratt ....... ..... .
H. J. W ragge.... ...........
G. P. Bauman_____ _
J. J. Jaeger, Jr__ ____
J. A. Boyle................ .

CAPITAL

60,000
50.000
25.000
25.000
25.000
25.000
25.000
25.000
50.000
25.000
15.000
50.000
35.000
30.000
25.000
35.000
25.000
150.000
100.000
175.000
50.000
25.000
30.000
25.000
75.000
25.000
50.000
50.000
800.000
50.000
25.000
25.000
25.000
25.000
200,000
25.000
200,000
100,000
60.000
1,500,000
5.000. 000
500.000
2.000.

70.000
25.000
25.000
50.000
35.000
50.000
25.000
25.000
25.000
30.000
50.000
100.000
25.000
50.000
100,000

Scarborough &
Company "
Insurance

000

Counselors

SURPLUS
PROFITS

$ 224,000
192.000
110.000
38.000
66.000
44.000
40.000
44.000
124.000
58.000
36,473
82.000
99,829
55.000
107.000
75.000
75.000
549,907
315.000
437,905
135.000
55.000
66.000
41.000
200,181
75,893
117.000
645.000
1.465.000
114.000
92.000
52.000
36.000
130.000
453.000
40.000
350.000
234.000
251.000
2.394.000
8.722.000
1.056.000
4,028,123
137.000
77,605
32.000
120.000

98.000
78.000
107.000
52.000
64.000
130.000
150.000
233.000
125.000
338.000
194.000

1
to B a n k s

FIR S T N A T IO N A L BANK B U ILD IN G . C H IC A G O 3, IL L IN O IS . STate 2 -4 3 2 3

Nebraska News

season recently, with 57 members pres
ent.
The speaker was Edward F. Lyle,
vice president and comptroller of the
City National Bank and Trust Com
pany of Kansas City, Missouri. He
spoke on the microfilming and storage
of bank records.
* *
The house magazine of The Omaha
National Bank, Around the Bank, won
the Award of Excellence in a compe
tition sponsored by the Society of
Associated Industrial Editors. Com
pany publications from 11 southwest-

Morris F. Miller, assistant vice pres
ident of the Omaha National Bank, is
teaching a course in advanced credits
at the University of Omaha.
The course is being given in cooper
ation with the Omaha Association of
Credit Men.
* * *

to repay short-term bank loans which
provided construction funds.
The stock is part of 750,000 shares
authorized by a charter amendment
approved by stockholders at a special
meeting August 24th.—The End.
* *

Hit by Piano

Melvin Adams, president of the
Northern Natural Gas Company di Bank of Brule, Nebraska, suffered a
rectors have set a dividend rate of cerebral concussion and a wrenched
5V2 per cent on 250,000 shares of pre knee when a piano toppled from a
ferred stock with par value of $100.
pickup truck on him. When the piano
Treasurer Harry H. Siert said that suddenly shifted, Mr. Adams feared
the stock was to be offered to the pub that it would fall on a child standing
lic at par by an underwriting group nearby and tried to stop it, the 500headed by Blythe & Company.
pound instrument striking his head
Proceeds from the sale will be used and his left knee.

AMERICAN NAT10NAL BANK
ST. JOSEPH. MO.

O F F IC IA L S T A T E M E N T —

SE P T E M B E R 30, 1953

R ES OU RC ES
Loans
“ Award of Excellence” presented to
Omaha National Bank.

ern states were entered. The awards
were based on editorial achievement
and appearance. Mary Gleason, adver
tising manager, is editor, and Jean
Culp is assistant editor. At the pres
ent time it is mailed monthly to the
bank staff members, directors, stock
holders and correspondent banks.
* * *
W. B. Millard, Jr., president of the
Omaha National Bank, has been
named to head a drive to raise $1,000,000 for the new Clarkson Hospital at
Omaha.
The drive was to begin after the
close of Omaha’s Community Chest
campaign. Clarkson Hospital recently
sold its present building and nurses’
home and will erect a $3,500,000 hos
pital near the University of Nebraska
College of Medicine at Omaha.
Mr. Millard said sale of the present
Clarkson properties, plus money made
available by the board of trustees, will
total $2,500,000, leaving the milliondollar balance to be raised in the fund
campaign.

$ 7,348,752.18

Municipal Bonds

________________

1,071,585.52
111,000.00

Banking Premises

________________

Federal Reserve Bank Stock

________

United States Obligations

_$11,245,803.83

Cash and Sight Exchange

7,526,688.56

30,000.00
18,772,492.39
$27,333,830.09

LIABILITIES
Capital Stock

Surplus

______

I »divided Profits and Reserves
Deposits

400,000.00
600,000.00

350,708.72

___________ 25,983,121.37
$27,333,830.09

OFFICERS
R . R . C A L K IN S
P resid en t

C H A R L E S K . R IC H M O N D
A s s is ta n t V ic e P re sid e n t

G E O . U . R IC H M O N D
E x e c u tiv e V ic e P resid en t

W. F R A N K L IN E V A N S
A ss is ta n t V ic e P resid en t

B E V E R L Y P IT T S
V ic e P resid en t

E . H. G I N Z K E Y
A ss is ta n t C a sh ier

W A L T E R W . L IM B A C K
V ic e P resid en t

W . H A R R IS O N G R I F F I T H
A ss is ta n t C ash ier

B EN T O N M. C A L K IN S , J R .
C a sh ier

TOM J . B U T L E R
A ss is ta n t C a sh ier

<Tln' Olì) flU'Ualilrli
CHARLES E. WALTERS C O .

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

M em ber F e d e ra l D epo sit In su ra n ce C o rpo ratio n

Nort hwest ern Banker, November, 1953

neer Insurance Company and Folsom
Bros. Company in Lincoln. He is
a native of Lincoln, receiving degrees
from the College of Business Admin
istration and the Law College at the
University of Nebraska, also attending
Columbia University and New York
University. His civic activities have
embraced 20 years of work with Boy

T WO new directors have been ap
pointed at the National Bank of
Commerce. Arnott R. Folsom suc
ceeds his father, E. C. Folsom, de

ceased. William I. Aitken takes the
place of E. W. Miskell, who also died
recently.
Mr. Folsom is president of the Pio-

OVER EIGHTY-TWO YEARS OF BANKING EXPERIENCE
Statement of Condition

The First National Bank of Lincoln
LIN CO LN , N EB R A SK A
(ORGANIZED 1871)

At the Close of Business September 30, 1953

ASSETS
Cash and Due from Banks........................................... $14,901,083.31
U. S. Government Bonds............................................... 24,268,337.48
Other Bonds and Securities......................................... 4,903,472.67
Federal Reserve Bank Stock.........................................
91,500.00
Loans ............................................................................. 14,438,348.79
Interest Earned Not Due.................................................
257,385.35
Banking House and Equipment...................................
593,997.24
Total A ssets............................................................ $59,454,124.84

LIABILITIES
.$1,650,000.00
. 1,400,000.00
643,862.16 $ 3,693,862.16
.........................
144,300.96
.........................
271,431.08
......................... 55,344,530.64

Capital Stock..............
Surplus ........................
Undivided Profits ......
Discount Unearned ....
Reserve for Taxes, Etc,
Deposits ......................

,$59,454,124.84

Total Liabilities
O F F IC E R S
G E O R G E W . H O L M E S....C h airm an of B o ard
HO W ARD F R E E M A N ..C h a irm an E xec. Com.
BU RN H A M

Y A T E S .................................. P resid en t
E. U. G U EN ZEL........................... V ice-P re sid e n t
LIN U S E. SO U TH W ICK...........V ic e-P re sid e n t
A . C. G L A N D T ..V ice-P resid en t a n d C a sh ie r
R. I. B E C K E R ................................V ice-P re sid e n t
CLIFFO RD G . W ESTO N ...........V ice-P re sid e n t

LYLE F . ST O N EM A N ..................V ice-P re sid e n t
G . H. C R A N E .......... A ss is ta n t V ice-P re sid e n t
R. A . G E S S N E R ........ A ss is ta n t V ice-P resid en t
M A X SCH N EID ER A ss is ta n t V ic e-P re sid e n t
LEO I. B E C K .............................A ss is ta n t C a sh ie r
EUG EN E K. R E E C E .............. A ss is ta n t C a sh ie r
ELM ER L. P ET E RSO N ..........A ss is ta n t C a sh ie r
M. H. PO LLA RD , JR ............. A ss is ta n t C a sh ie r
D A LE M. SH O EM A K E R ........................... A u d ito r

Member Federal Deposit Insurance Corporation
Northwestern
Banker, November, 1953

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

FO LSO M
I. A I T K E N
E le c t e d d ire c to rs of
N a tio n a l B a n k o f Com m erce

Scouts, Red Cross work and active
association with the Chamber of Com
merce, University Club and Lincoln
Country Club. He is now serving as
president of the Lincoln Symphony
Association and is a trustee of the
Y.W.C.A.
Mr. Aitken’s father, M. I. Aitken,
was the first cashier of the National
Bank of Commerce. Mr. Aitken cur
rently is a director of AddressographMultigraph Corporation of Cleveland,
Ohio; the Aquila Company, Omaha;
Coca Cola Bottling Company, Lincoln;
Sahara Coal Company, Chicago and
Harrisburg, Illinois, and Woodmen
Central Life Insurance Company, Lin
coln. He is also on the executive com
mittee of several of these organiza
tions.
Mr. Aitken is vice chairman of the
Water Advisory Board of the City of
Lincoln, a former director of the
Chamber of Commerce, is now a trus
tee of First Plymouth Congregational
Church, and is a member of the Lin
coln Country Club. He was born and
educated in Lincoln, completing his
education at Harvard University. Mr.
Aitken is a veteran of World War I.
=t= * *
Fred Aldrich, vice president of Con
tinental National Bank, has been re
elected vice president of the American
Bankers Association for Nebraska.
* * *
Two Lincoln bankers were on the
committee for the Nebraska Educa
tion-Business Day. They were Burn
ham Yates, president of First National,
and Glenn Yaussi, vice president of the
National Bank of Commerce. The day
was designed to bring businessmen
and school administrators together to
discuss Nebraska education.
* * *
Byron Dunn, president of the Na-

Nebraska News

tional Bank of Commerce, has an
nounced his bank is making plans to
hold another annual forum for its cor
respondent banks in February.
* * *
A curb teller ordinance was killed
for the second time in three months
by the Lincoln City Council.
The first time it was defeated by a
five to two vote. Opponents thought
that the matter was finished.
On final reading the ordinance was
killed by a four to three vote. The
final form of the ordinance would
have established a $350 a year fee.
* * *
The board of directors of the Na
tional Bank of Commerce of Lincoln,
Nebraska, authorized calling a stock
holders’ meeting to vote on changing
the par value of the bank’s stock from
$100 to $20 per share. They also voted
to ask the stockholders to authorize
a 12% per cent stock dividend on the
old stock and to give the stockholders
of record at this time the right to
purchase an additional 12% per cent
of new stock in proportion to their
present holdings. This would give
the bank $1,000,000 capital and $1,000,000 surplus.

New District Manager
R. C. Schall, vice president of the
St. Paul Terminal Warehouse Com
pany, St. Paul, Minnesota, has an-

office. Mr. Peterson was transferred
to Omaha from St. Paul where he had
served in the field warehouse division
of the company.
Mr. Peterson is a graduate of the
University of Minnesota and had ex

tensive service in theArmy Medical
Corps and with the office of the Chief
of Transportation, Washington, D. C.
He succeeds Wally Otto, who re
signed recently to join his brother in
a private business in Michigan.

Then, consolidate your buying
of bank supplies and printing
horn your friendly USCB sales
man.

U n it e d S t a t e s C h e c k B o o k C o m p a n y
1311 H O W A R D ST.

OMAHA

A ttend your

NEBRASKA BANKERS
CONVENTION
November 10 and 11

You are c o rd ia lly in vite d
to our
COFFEE BAR
in the
Assembly Room
(Turn left as you enter main door)

Hotel Fontenelle

R U S S E L L V. P E T E R S O N
N am ed d is tr ic t m a n a g er in O m ah a

nounced that Russell V. Peterson has
been appointed branch manager of
the company, in charge of its Omaha
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AN D
TIMELOCK EXPERTS

NATIONAL BANK of COMMERCE
LINCOLN, NEBRASKA
50 Tears at 13th and O St reet s
Home of Compl e t e Banking Ser vi c e
Organized Aug. 4, 1902
Member Federal Deposit Insurance Corporation

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

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

Nort hwest ern Banker. November, 1953

Nebraska News
S im J o s e p h

MUNICIPAL BONDS
CORPORATION BONDS and STOCKS

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

Phone: W ebster 2281

INVESTMENT SERVICE FOR BANKS
Specializing in Nebraska
Municipal Bonds

KIRKPATRICK-PETTIS COMPANY
540 Omaha National Bank Bldg.
OMAHA, NEBRASKA
LINCOLN O FFIC E — 618 First National Bank Bldg.

to provide their Chicago
accounts with complete banking service, in a
prompt, efficient manner. Our facilities are at
your disposal.

it y

a t io n a l

a n k

A M I T R U S T C O M P A N Y o t C h ica go
208

SOUTH

(.M E M B E R

SALLE

FEDERAL D EP O SIT

IN SU RANCE

CU w icL J a xja b lsL Qm
¿x a m p L

Q n a o jn sL J

STREET

jd m s l

adm l

COR P.)

J h h iL J c o c

T Y L u n id p a L (B o n d A ,

We Sell Them!
R

o b e r t

E . S

208 South Nineteenth Street
Northwestern Banker, November, 1953

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

c h w e s e r

Omaha, Nebraska

G ROUP III of the Missouri Bankers
Association held its fall meeting
last month in St. Joseph and elected
G. R. Frederick of Stanberry chair
man. The new chairman, who is cash
ier of Farmers State Bank of Stan
berry, succeeds Harry H. Broadhead,
Jr., assistant vice president of First St.
Joseph Stock Yards Bank. S. C. Mc
Cormack, Jr., cashier of the Exchange
Bank of Mound City, was elected sec
retary. The principal speaker at the
evening banquet was David Living
ston of Washington, Iowa, whose topic
was “New Slants on Agricultural
Credit.”
American National Bank’s punch
howl at the meeting of Group III,
Missouri Bankers Association, lacked
for the first time in a half century
the presence of Dan Harts, who was
confined to his home by illness.
* * =t=
George E. Porter, president of First
National Bank; R. R. Calkins, presi
dent of American National Bank; Fidwin B. Wright, president of Drovers
and Merchants Bank, and T. J. Mc
Cullough, vice president of First St.
Joseph Stock Yards Bank, were the
St. Joseph bank officers who attended
the A.B.A. convention in Washington.
Mr. Porter made the trip by air. Mr.
Calkins visited in New York before
returning home.
* * *
R. E. Jones, Jr., vice president of
First National Bank, St. Joseph, spent
a mid-September vacation at Colorado
Springs.
* * *
Vacation trips by Tootle-Lacy Na
tional Bank officers, St. Joseph, as the
season ended included three weeks in
Estes Park for E. L. Crume, vice presi
dent; a week in Minnesota for Paul
Ahersold, assistant cashier; two weeks
at Park Rapids for Charles Burri, as
sistant vice president; two weeks in
Houston, Texas, visiting a new grand
child, for A. E. LaBouff, assistant cash
ier and auditor, and early in October
a trip to West Virginia for Milton
Tootle, president, who later met Rus
sell Wales, vice president, in New
York.—The End.

Joins H o ld re g e Bank
R. V. “Ray” Anderson has been ap
pointed operations manager at the
First National Bank, Holdrege, Ne
braska, it was announced recently.
The appointment of Mr. Anderson,
who will be in complete charge of the
proof, transit and bookkeeping depart
ments, was announced by L. J. “Jo”
Titus, bank president.

Nebraska News

. W Them in Omaha nt the
.1fitti N ebraska Convention
HEN the Nebraska Bankers As
sociation holds its 56th annual
W
convention in Omaha on November

10th and 11th, officers and representa
tives of larger banks throughout the
country, and those associated with
many industries serving the operating
needs of banks, will attend to renew
acquaintances and meet the younger
bankers who are coming into the busi
ness.
Those who have informed the North
western B anker of their intention to
attend the Nebraska meeting are:
Chicago

American National Bank: Charles C.
Kuning, vice president; William B.
Whitman, assistant vice president, and
Walter Armstrong, assistant cashier.
Continental-Illinois National Bank &
Trust Company: W. E. Resseguie, vice

president, and John Q. Adams, second
vice president.
First National Bank: Verne L. Bartling, vice president, and Mrs. Bartling;
V. C. von Meding, assistant cashier,
and Nevin G. Bowser.
Northern Trust Company: John V.
Haas, second vice president, and Rob
ert P. Kline, assistant cashier.

Miller, Jr., assistant vice president,
and John Painter, assistant cashier.
First National Bank: Edward A. Huwaldt, assistant vice president.
Inter-State National Bank: George
C. Dudley and Arden Bruch, assistant
vice presidents.
Lincoln
Continental National Bank: C. W.

Battey, president; Edward A. Becker,
senior vice president; Fred Aldrich
and Howard Hadley, vice presidents,
and W. E. Edgecomb.
First National Bank: Burnham Yates,
president; Howard Freeman, chairman
of the executive committee; E. U.
Guenzel, Linus Southwick, and Lyle
Stoneman, vice presidents, and Elmer
L. Peterson, cashier.

worth, vice president; Guy S. Hadsell,
assistant vice president, and R. C.
Kemper, Jr.
Commerce Trust Company:

R ou n d ed

27 Years of
Experience
in

th e

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Federal Reserve Bank of St. Louis

New York

Chase National Bank: J. D. Breaks,

vice president; J. C. Frost, second vice
president, and C. G. Callan, assistant
cashier.
Chemical Bank & Trust Company:

James L. Sharp, Jr., representative.
Guaranty Trust Company: Walter
H. Potter, second vice president.
Hanover Bank: Foster M. Hampton,
assistant vice president.

IO W A AND NEBRASKA MUNICIPAL BONDS
Public Utility, Industrial, Railroad & Corporate Securities

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First Trust Company: George W.
Holmes, president; E. N. Thompson,
executive vice president; John C. Whit
ten and E. M. Hunt, vice presidents;
Clarence C. Hinds, secretary-treasur
er, and Dale Tinstman, assistant
manager, investment department.
National Bank of Commerce: Byron
Dunn, president; Albert A. Held, exec
utive vice president; William Strateman, Myron Weil, A. F. Jorgensen, H.
E. Swedburg, Carl Ganz and Glenn
Yaussi, vice presidents.

lAiidsihwhitsJiA. oft,-------------------------------------------------------------------------------------------------------

Kansas City

City National Bank: Dale R. Ains

M ID W E ST

GREETINGS
to

NEBRASKA BANKERS
ASSOCIATION
As you meet in Omaha,
November 10-11 for your
Annual Convention
at the Fontenelle Hotel

STOCK

EXCHANGE

INVESTMENT
SECURI TI ES
1. Government bonds.
2. Municipal and corporate bonds
3. Listed and local stocks
4. Mutual Investment Funds

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Machine Company, Inc.

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OMAHA, NEBRASKA

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Northwestern Banker, November, 1953

Nebraska News

Manufacturers Trust Company: Har
old L. Walsh, assistant vice president.
Public National Bank & Trust Com
pany: Earl Gafford, vice president.

Toy National Bank: E. E. Erickson,
vice president, and Conrad Aronson,
assistant cashier.

New York: John P. Eager, branch
manager, Kansas City; Jack A. Lud
wig, manager, Omaha, and Don B.
Keller, representative, Omaha.

Bank Equipment and Other Firms
to Be Represented at the
Nebraska Convention

St. Paul Insurance Companies, St.
Paul: L. R. Moeller, assistant secre

St. Joseph

American National Bank: Beverly

Pitts, vice president, and Charles Rich
mond, assistant vice president.
First National Bank: J. M. Ford II,
vice president, and Vern P. Meyer,
assistant vice president.
First St. Joseph Stock Yards Bank:

Tom McCullough, vice president, and
Harry H. Broadhead, Jr., assistant
cashier.
Tootle-Lacy National Bank: R. E.
Wales, executive vice president; E. L.
Crume, vice president, and Gilbert
Tootle, assistant vice president.

Bankers Security Life Insurance So
ciety, Des Moines: Phil Blumberg,

Omaha manager.
Banks, William H., Warehouses, Inc.,
Chicago: Dave Coffman, executive vice

president, and Jim Fletcher, Nebraska
district manager.
Bankers S e r v i c e Company, Des
Moines: Henry H. Byers, president.
Cummins Business Machines, Chi
cago: Bud Greenspan, Nebraska rep

resentative.
Diebold, Incorporated, Canton, Ohio:

St. Louis

First National Bank: Frank Fuchs,

Richard S. Gwinn, regional manager.

Mercantile Trust Company: Holland

LaMonte, George & Son, Nutley,
New Jersey: J. S. Porterfield, sales

vice president.

Chalfant, assistant cashier.

representative.

Sioux City

Live Stock National Bank: Carl L.
Fredericksen, president; Stanley W.
Evans, vice president, and R. K. Dra
per, representative.
Security National Bank: B. M.
Wheelock, vice president, and Charles
H. Walcott, vice president.

Lawrence Warehouse Company, Chi
cago: G. A. Johnson, assistant vice

president.
president, and Richard Brooks, assist
ant vice president.
Recordak

Corporation,

Rochester,

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Northwestern Banker, November, 1953

St. Paul Terminal Warehouse Com
pany, St. Paul: Richard C. Schall, vice

president, St. Paul, and Russell Peter
son, district manager, Omaha.
Todd Company, Rochester, New
York: H. J. Martin, manager, and T.

M. Stovall, district representative.
United States Check Book Company,
Omaha: Homer Peterson, manager,

Omaha; Howard A. Miller, North
Platte; Austin King, Lincoln, and Ed
Peck, Omaha.
Walters, Charles E., and Company,
Omaha: Robert L. Goethe, president;

Paul L. Keller, Leo Goethe and Louis
R. Boettcher, vice presidents.

North Central Life Insurance Com
pany, St. Paul: William H. Muhl, vice

As the official experts of the Nebraska Bankers A sso
ciation, we have served Nebraska bankers since 1881
in timelock, safe and vault inspection.

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Federal Reserve Bank of St. Louis

tary, St. Paul; D. W. Lyle, manager;
D. N. Shaw, state agent; E. A. Reed,
state agent; Robert T. Earley, state
agent, all of Omaha.

AG CREDIT . . .
(Continued from page 72)
them. He asked, “But how anxious
are commercial banks to get into real
estate lending?”
At another session a panel of bank
ers discussed the best way to handle
agriculture loans at the local bank.
On the panel were John R. Fitzgibbon, assistant cashier and agricultur
al representative of the Hastings Na
tional Bank; Eldon F. Goble, assistant
vice president and agriculture consult
ant at the Beatrice National Bank;
W. C. Heintzelman, president of the
First National Bank, Lyons; T. J.
Waldo, vice president and cashier of
the Republican Valley Bank at Or
leans, and the moderator, Robert L.
Voss, vice president of the First Na
tional Bank, Fremont.
A point made in the discussion was
that the farmer should be encouraged
to come directly to the bank for the
necessary credit to buy machinery.
A question asked was whether the
note should be for a long or short
term.
There seemed to be no cut and
dried answer. Some said that the
payment should be over a longer pe
riod so the farmer wouldn’t have to
renew the note.
But others preferred the short term
note for six months on the theory
this gives the banker a chance to re
view the farmer’s situation and dis
cuss any future plans.
Another panel talked of the various
aspects of intermediate credit. This
discussion went into the questions of

Nebraska News

irrigation systems, soil conservation Lauritzen and Charles Vorhees, vice North Platte Award
practices, portable buildings, founda presidents of the First National Bank
The McDonald State Bank of North
at Omaha, and Edward Huwaldt, vice Platte, Nebraska, awarded a silver
tion stock and machinery.
On this panel were Kenneth A. president of the First National Bank tray to the winning 4-H Club at the
Tool, executive vice president of the of Kansas City.
1953 Lincoln County Fair in 4-H herdsFirst National Bank, Wahoo, and three
manship.
University of Nebraska officials, E. A. Change in Hours
Olson, extension agriculture engineer;
Four banks in Cheyenne county,
L. W. Hurlbut, chairman of the agri Nebraska, have announced their deci
culture engineering department; E. E. sion to close on Saturday afternoon.
There must be a reason
Peterson, extension agricultural econ
This announcement was made by
omist, and A. W. Epp, associate pro The Sidney National Bank, The First
for
superiority
fessor of agriculture economics.—The State Bank of Lodgepole and The Pot
End.
ter State Bank. The Dalton State
in
Bank has been closed on Saturday aft
ernoon
for
some
time.
60th Anniversary
The Peoples-Webster County Bank,
Red Cloud, Nebraska, observed its
60th anniversary of service to the com
munity by holding open house on
their anniversary date last month.
Some 452 persons signed the regis
ter during the day. No business was
transacted, the time being utilized in
making welcome all those who called.
All parts of the county were rep
resented. Also present were Byron
Dunn, former president of the First
rm
National Bank of Commerce at Lin
Businessmen and
The first Drive-Up was Diebold.
coln, and Mrs. Dunn; Mrs. Fay VanTo
st s A ll
Today's finest Drive-Up is
Landingham, cashier; Myron Weil,
th e y
Diebold. More than 30
Glen Yaussi and Herbert Swedberg,
And
this bank
vice presidents of that bank; John R.
exclusive features . , . dictated

Diebold
DRIVE-UP
COUNTERS

by the experience of
500 Drive-Up Banks.

th e H o te l o f

STAR FEATURES

KANSAS CITY

FIRST NATIONAL
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HEAD OFFICE • P H O E N I X , A R I Z O N A

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Perfect location.
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WILLIAM H. BANKS WAREHOUSES. INC.
Dave Coffman and Jim Fletcher will be attending the NEBRASKA
BANKERS ASSOCIATION MEETING and will be registered at
the Fontenelle Hotel. They will appreciate an opportunity of a
visit with you.
DI VI SION O F F I C E S :

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Federal Reserve Bank of St. Louis

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Northwestern Banker, November, 1953

LIVE
STOCK

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Federal Reserve Bank of St. Louis

N A T IO N A L B A N K
O M A H A ,

N E B R A S K A

M EM B ER OF FED ERA L RESERVE AND FED ERA L DE P O S IT I N S O B A N C E CO RPORATION

A NUMBER of persons attending the Iowa Bankers conven
tion last month are pictured on this and succeeding pages. Left
to right in the pictures above are:
LEFT— Lee A. Holland, executive vice president, Washington
State Bank, Washington, and new president of Iowa Bankers
Association, and Joe Menges, cashier, Alta Vista, and new vice
president and treasurer of the Iowa Association.
CENTER—Harry S. Lekwa, retiring Iowa Association presi-

dent, and vice president, Ackley State Bank, Ackley; Eddy Gil
more, former correspondent in Moscow for the Associated Press,
and Chas. J. Spies, president, Iowa Trust and Savings Bank, Emmetsburg, andretiring vice president and treasurer of the Iowa
Association.
RIGHT— C. S. Young, president, Federal Reserve Bank, Chi
cago, and Vivian W. Johnson, president, First National Bank,
Cedar Falls, and a director of the Chicago Federal Reserve.

N ew il iffSi o í 3 9ti5 7 P erson s
R ecord ed a t Mourn S'on vent ion
Excellent Speakers from Varied Fields Well Received
C

OMPREHENSIVE discussions of
the agricultural outlook, nation
al business needs and trends,
the government bond market, bank
ing operations, United States foreign
relations and international military
requirements were all wrapped up in
a neat package of outstanding speak
ers and delivered to 3,057 persons at
tending the 67th annual convention of
the Iowa Bankers Association in Des
Moines late last month.
The registration figure of 3,057 set
a record high, exceeding last year’s
attendance total by 336. The conven
tion was held at Hotel Fort Des
Moines.

)

Lee A. Holland, executive vice pres
ident and trust officer of the Washing
ton State Bank, Washington, was
elected president of the Iowa Bankers
Association to s u c c e e d Harry S.
Lekwa, vice president of the Ackley
State Bank, Ackley. Joe Menges, cash
ier of the Alta Vista State Bank, Alta
Vista, was elected vice president and
treasurer. He succeeds Chas. J. Spies,
president of the Iowa Trust and Sav
ings Bank, Emmetsburg.
At the meeting of Iowa members
of the American Bankers Association,
John B. Keeline, vice president of the
A.B.A. for Iowa, presided. He is pres
ident of the Central Trust and Sav

Left to right are:
LEFT—Panel on United States government bonds—Andrew
E. Wigeland, vice president, City National Bank and Trust Com
pany; James H. Clarke, vice president, American National Bank
and Trust Company; Richard H. Wayne, vice president, Harris
Trust and Savings Bank, and John Grier, vice president, First
National Bank, all of Chicago.
RIGHT—Paul M. Shain, executive vice president, Benton

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Federal Reserve Bank of St. Louis

ings Bank at Cherokee. Grover S.
Krouth, president, Iowa Trust and
Savings Bank, Oskaloosa, was re
elected nominating committeeman.
Joe H. Gronstal, vice president, Carroll County State Bank, Carroll, was
elected alternate.
J. H. Pullman, vice president, Fre
mont County Savings Bank, Sidney,
was elected to a three-year term on
the A.B.A. executive council.
At the annual luncheon meeting of
the Iowa Club of the School of Bank
ing at Madison, new officers were
elected as follows:
President, Carroll W. Grimes, exec
utive vice president, First National

County Bank and Trust Company, Vinton; Carroll W. Grimes,
executive vice president, First National Bank, West Union;
Joseph G. Knock, president, Iowa State Savings Bank, Creston;
J. W. Lipton, Jr., vice president and cashier, Arthur Trust and
Savings Bank, Arthur, and S. G. Barnard, secretary, Bankers
Trust Company, Des Moines. Mr. Grimes is new president of
the Iowa Club of the School of Banking at Madison. Mr. Lipton
is new vice president, and Mr. Shain, Mr. Knock and Mr. Bar
nard are new directors.
Nort hwest ern Banker, November, 1953

Iowa News

M itre P ictures from the lotea Convention

MORE PICTURES from the Iowa Bankers Convention. Left
to right are:
UPPER LEFT— Charles H. Griesa, vice president, Inter-State
National Bank, Kansas City; Mrs. Frank Fuchs, and Frank
Fuchs, vice president, First National Bank, St. Louis.
CENTER— The “ American Beauties” at the Iowa Bankers As
sociation headquarters. Seated—Dora Springer and Rose Dooley.
Standing—Pauline Marks, Elsie Hartnagle and Carole Hughes.
UPPER RIGHT—Jack Porterfield and Robert P. O’Connor,
George LaMonte & Son, Chicago.

Bank, West Union; vice president, J.
W. Lipton, Jr., vice president and
cashier, Arthur Trust and Savings
Bank, and secretary-treasurer, Gordon
C. Hall, assistant cashier, Citizens
State Bank, Wyoming. Dale C. Smith,
assistant vice president, Central Na
tional Bank and Trust Company, Des
Moines, is retiring president.
Directors of the Iowa Club elected
for one year are: S. G. Barnard, sec
retary, Bankers Trust Company, Des
Moines; Hugh P. Ross, cashier, Lyon
County State Bank, Rock Rapids; Jo
seph G. Knock, president, Iowa State
Savings Bank, Creston, and Paul M.
Shain, executive vice president, Ben
ton County Bank and Trust Company,
Vinton.
The entire morning of the first day
was devoted to talks by 10 speakers
on agriculture. Presiding over the
meeting, which started with break
fast, was J. E. King, chairman of the
Iowa Bankers agricultural committee
and president of the Peoples National
Bank in Albia.
The three principal speakers were
Allan B. Kline, president of the Amer
Northwestern
Banker, November, 7953

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Federal Reserve Bank of St. Louis

BOTTOM LEFT—P. T. Webb, executive vice president, Manly
State Bank; Robert Schaefer, cashier, Manly State Bank; Robert
Bride, director, Manly State Bank; John Cleary, Marquette Na
tional Bank, Minneapolis; Mrs. P. T. Webb; Harry Habata, en
tertainer for the Marquette National, and Otto H. Preus (fore
ground), vice president, Marquette National Bank, Minneapolis.
BOTTOM RIGHT—Donald A. Harper, assistant vice president,
First Wisconsin National Bank, Milwaukee; John R. Lauritzen,
vice president, First National Bank of Omaha, and Mack A.
Aldrich, vice president, First National Bank in St. Louis.

ican Farm Bureau Federation, Chi
cago; Dr. James H. Hilton, recently
appointed president of Iowa State Col
lege, Ames, and Fred H. Hatch, presi
dent of the Chicago Live Stock Ex
change.
Mr. Kline attacked the system of
fixed farm price supports advocated
by certain government officials, the
house agricultural committee in par
ticular, and said he favored instead
flexible supports that would fit in bet
ter with a continued system of free
enterprise in all phases of agriculture.
He expressed great confidence in the
ability of Iowa farm families to main
tain a strong agriculture in this state.
Dr. Hilton explained the scientific ap
proach to farming advocated through
the schools at Iowa State, explaining
how improved methods of farming are
made available through these scien
tific studies. He called upon bankers
to familiarize themselves with tech
nical advances so they could judge
loaning requirements of farmers in
the light of these modernized prac
tices that lead to greater production
and income.

Mr. Hatch’s belief that more confi
dence has come into the cattle market
and that livestock in general is now
in a more stable position, was also
expressed by a number of bankers
who were asked for comments along
this line during the convention. The
general feeling of most is that farm
conditions in Iowa are in pretty good
shape, and probably better than most
other farming areas.
Other subjects discussed at the
morning meeting were agricultural
credit conditions, the Iowa Agricul
tural Credit School at Ames (held
two weeks each June), a commercial
fertilizer loan program for banks, tree
farming in Iowa, reforestation, grass
land farming and financing the com
mercial feed dealer.
Another outstanding feature during
the convention was a four-man panel
of Chicago bankers who discussed
“The U. S. Government Bond Market.”
Moderator was James H. Clarke, vice
president of the American National
Bank and Trust Company. Others
were John Grier, vice president, First
National Bank; Richard H. Wayne,

B e st

W is h e s . . . fo r a
W o n d e rfu l

T h a n k s g iv in g

The directors, officers, and
all members of Bankers Trust
Company extend to you their
sincere wishes for a most
pleasant Thanksgiving Holiday.

Des Moines, Iowa

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Federal Reserve Bank of St. Louis

M em ber: F ed era l Deposit Insurance Corporation
F ed era l Reserve System

Northwestern Banker, November, 1953

Iowa N e w s

.W«r<*

P ic tu r e s

HOSTS at the social hour during the convention were officers
of the Central National Bank and Trust Company, Des Moines.
Several of the officers are pictured above, left to right:
LEFT— George T. Nelson, assistant cashier; Frank R. Warden,
vice president; Lehman Plummer, vice president, and E. F.

vice president, Harris Trust and Sav
ings Bank, and Andrew E. Wigeland,
vice president, City National Bank
and Trust Company.
James Q. du Pont, administrative
assistant, E. I. du Pont de Nemours
& Company, Inc., Wilmington, Dela
ware, warned that business men
should not appeal to the selfish motive
in the public, but first realize them
selves that what individuals want
most is to be first spiritually and mor
ally wealthy.
G. Keith Funston, president of the
New York Stock Exchange, was wel
comed back to the state of his birth,
and in return gave his “standing room
only” audience a brilliant discussion
on a topic that could have been made
too complex by a less experienced
man. His talk, “Equity Capital and
the Stock Exchange,” pointed up the
need for new capital in today’s ex
panding business world. He men
tioned the need for educating the pub
lic to the soundness of investing in
the business of American factories
and enterprises, stating that the vast
resource of constantly growing sav
ings could well provide some of the
funds so badly needed for new equity
capital.
Dr. You Chan Yang, South Korean
Ambassador to the United States,
brought his vast audience to their feet
at the end of one of the most soul
stirrin g , beautifully delivered ad
dresses ever heard in Iowa conven
tion halls. Short, smiling, yet serious,
and immaculately groomed, Dr. Yang
presented his side of the Korean issue
in a masterful style that left no doubt
as to his opinions on any point men
tioned during his talk.
His vivid descriptions of terror and
destruction visited on his country by
the Communists were followed by sin
cere words of praise for American
G. I.’s whom he said could never be
Northwestern Banker, November, 1953

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Federal Reserve Bank of St. Louis

fromloira

Buckley, president.
RIGHT—Arthur T. Donhowe, vice president; E. R. Bowlin,
vice president; Dale C. Smith, assistant vice president; Ed
Blicjuez, assistant vice president; Harold Carlson, assistant
cashier, and Emmett E. Johns, vice president.

thanked adequately for their sponta
neous giving of $15,000,000 out of their
own pockets just to aid the more than
200,000 Korean children who were or
phaned by the war. Repeatedly
throughout his talk, Dr. Yang referred
with great emotion to the love his
country has for the United States, and
their esteem for the honest and hon
orable manner evidenced by this coun
try towards Korea.
Dr. Yang’s fluent style and descrip
tive powers painted graphically the
picture of a Korea that is 4,300 years
old, a Korea that has never in all that
time waged aggressive warfare, a
country that has many times moth
ered inventions such as movable type
(before Guttenberg), submarines in
1593 to defeat the Jap navy, the en
cyclopedia 300 years before it was
first brought out in France, and the
magnetic compass for navigation —
just to mention a few.
About India’s Prime Minister Jawaharlal Nehru, Dr. Yang had this to
say: “Mr. Nehru is attempting some
thing that history has always record
ed in black and white—the folly of
appeasement. Mr. Nehru is attempt
ing to evolve a new Hindu rope trick.
He is attempting to walk a tight rope
and be nice to the Communists on one
side and appear equally nice to the
free world on the other side.” He
then added, “ I do not go along with
this ‘aerial tiptoeing.’ ”
In concluding his talk, Dr. Yang re
ported on a few of the statistics emerg
ing from the Korean war: 200,000 or
phans, 300,000 w i d o w s , 10,000,000
homeless and 20,000 known amputees.
“The enemy now wants to talk,” he
said. “ Shall we listen to him? Think
it over!”
Eddy Gilmore, noted Associated
Press correspondent in Moscow and
recently returned to this country aft
er 11 years abroad, gave an insight

into Russian everyday life in a mat- ^
ter-of-fact manner that pulled the
hazy veil away from just how much
the Russian people have and how
good or bad it is. As two examples ^
he mentioned that a Russian vacuum
cleaner he purchased had lasted ex
actly one month, while the Russian
refrigerator was still operating after
some months but wouldn’t freeze iceY
cubes in summertime!
When any Russian is arrested, his
bank account, if he has one, immedi
ately is seized by the government. ^
Mr. Gilmore said he believes one of
these four things will occur under
Malenkov:
1. Premier Malenkov will return to
the Stalin former type of vicious dietatorship.
2. He will form a more liberal gov
ernment.
3. A military man will step in and .v.
take over.
4. Premier Malenkov will try to im
itate Stalin and then the organization
will fall apart from dry rot.
Mr. Gilmore said it appears to him"'
that Malenkov’s regime is weak, it
seems to be playing for time and
doesn’t look like it will last long. He
thinks Russia’s government will begin i
to fall away at the edges, then con
tinue to deteriorate.
General James A. Van Fleet, former
Commander of the 8th Army and U. N. Commander in Korea, was given a standing welcome as he approached
the speaker’s rostrum. His topic,
“Loyal Allies,” was most interesting
and related his views as to which
countries could be relied upon as our
friends and what kind of military aid
they needed. General Van Fleet spent
29 months in Greece prior to his top ,
assignment in Korea, where he again*
distinguished himself. After his re
tirement last March, he went around
the world again, revisiting many coun-

W HERE EVERY
C U S T O M E R IS
IM PO RTAN T

■

V A L L E Y BANK AND TRUST CO M PAN Y
DES

M O IN E S

I
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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Nort hwest ern Banker, November, 1953

Iowa News

sports and fur clothing were flown
in from abroad and from eastern cities
for this special showing. All of this
huge “wardrobe” was insured for
more than $200,000.
On Sunday night in the main ball
room of the Hotel Fort Des Moines,
Mrs. William G. Kane, whose husband
is vice president of the Central Na
tional Bank and Trust Company, Des
Moines, gave a very fine piano lecturerecital of classical music.
The principal entertainment for the
convention, “Hippodrome of 1954,”
United States Senator Alexander turned out to be a sparkling, fastWiley (Wisconsin) was the final moving parade of some of the finest
speaker on the program. As chair acts ever to appear on the KRNT
man of the Senate Foreign Relations Theater stage. Highlight of the “Hip
Committee, Senator Wiley told Iowa podrome” was the “dancing waters”
bankers that this country has had act. Specially designed fountains of
world leadership thrust upon it, that water were played by remote control
such leadership was not sought. “But in rhythm with the orchestra music,
this is like a man who doesn’t want arching high in the air, then drop
to go swimming but suddenly finds ping back, forming various patterns,
himself in the water,” said the Sena presenting changing color patterns as
tor. “He either swims or he sinks.” lights were changed, then swaying
Senator Wiley stated that if it were back and forth in time with waltz
not made possible for foreign markets music.—The End.
to purchase U. S. surpluses, such as
surplus farm commodities, that these
surpluses would soon build up do Iowa League Officers
New officers of the Iowa Savings
mestically and have a depressing ef
and Loan League elected at the annual
fect on the market.
The ladies’ program at the conven meeting in Des Moines are John Vasattion was headlined by a luncheon and ka, Cedar Rapids, president; E. P. Juel,
style show at the Hotel Savery. Lat Council Bluffs, first vice president; C.
est fashions in formal, informal, H. Warnock, Iowa Falls, second vice

tries to obtain information and data
that he reported in this talk. In sub
stance, the General related that what
all of these countries need is moderate
supplies of military equipment and
the only American manpower they
want is experienced supervision from
United States military men that can
help train their forces. Other than
this, he said, they do not want one
American soldier for each of these
countries is willing to fight for itself,
and they do not ask that American
blood again be shed.

P ictures Taken at
ON THE OPPOSITE PAGE are more pictures taken at the
Iowa Bankers convention. Left to right in each picture are:
1. Seated—Jack G. Mitchell, manager of hog buying depart
ment, John Morrell and Company, Ottumwa, Iowa, and Joe
Snyder, assistant vice president, Manufacturers Trust Company,
New York. Standing—Frederick W. Conrad, vice president,
Northwestern National Bank, Minneapolis, and Paul W. Water
man, Jr., vice president, Security-First National Bank of Los
Angeles.
2. W. E. Brockman, vice president, Midland National Bank,
Minneapolis; Mrs. W. Harold Brenton, Des Moines: Mrs. Arthui
T. Donhowe, Des Moines, and W. Harold Brenton, president,
State Bank of Des Moines.
3. Herb H. Echtermeyer, vice president, Live Stock National
Bank, Omaha; Mrs. R. B. Mulder, Des Moines, and Paul Hansen,
vice president, Live Stock National Bank, Omaha.
4. Dale H. Smith, executive vice president, Tipton State Bank,
Tipton; Mrs. Smith, and John V. Haas, second vice president,
Northern Trust Company, Chicago.
5. Carl L. Fredricksen, president, Live Stock National Bank,
Sioux City; Lee A. Holland, executive vice president, Washing
ton State Bank, and new president of the Iowa Association;
Leland C. Parkin, second vice president, Continental Illinois Na
tional Bank, Chicago, and L. F. Pingel, president, First State
Bank, Sioux Rapids.
6. Seated—C. S. Young, president, Federal Reserve Bank, Chi
cago, and James W. Hubbell, chairman, Bankers Trust Company,
Des Moines. Standing—R. J. Swanson, president, Citizens State
Bank, Clarinda; Scott C. Pidgeon, president, and Nevin Lee,
vice president, both of Bankers Trust Company, Des Moines, and
Banning MacFarland, vice president, Northern Trust Company,
Chicago.
7. George S. Henry, Kenneth T. Martin and Ashton Carhart,
all vice presidents of the First National Bank, Minneapolis.
8. S. G. Barnard, secretary, Bankers Trust Company, and
Digitized for Northwestern
FRASER
Banker, November, 1953
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Federal Reserve Bank of St. Louis

president, and E. M. Klapka, Fort
Dodge, re-elected secretary-treasurer.
R. T. Jenkins, Waterloo, and J. M.
Camp were elected to the state executive committee and C. R. LaBarre, Algona, was elected a director of the na
tional organization.

Farm Forum
An estimated 500 area farmers and
businessmen attended the Grinnell,
Iowa, State Bank Farm Forum at
Grinned college, hearing talks by farm
leaders headed by Allan Kline, presi
dent of the American Farm Bureau.
Bank officials termed the opening
forum as “highly successful.” The
forum will be repeated next year, fea
turing leaders in the farm field as
the speakers.

Iowan Honored

Harry E. Petersen, former Council
Bluffs, Iowa, resident, has been elected
president of the Banking Advertisers
Association of Southern California.
He is vice president and director of
advertising of Citizens National Trust
and Savings Bank of Los Angeles.

To Remodel

Stockholders and directors of the
Northwestern State Bank, Orange City,
Iowa, have voted to begin an expan
sion program which will more than ^
double the size of the bank’s office
facilities.

latraHankers
C. Albin Rodine, Iowa-Des Moines National Bank, both of Des
Moines.
9. William Haakinson, vice president and cashier, First Fed"*
eral State Bank, Des Moines; Mrs. Melvin D. Synhorst, and
Melvin D. Synhorst, Iowa Secretary of State, Des Moines.
10. Walter Armstrong, assistant cashier; Charles C. Kuning,
vice president, and William B. Whitman, assistant vice president,
all of American National Bank and Trust Company, Chicago.
11. Seated—Hollis F. Peck, manager of public relations de
partment, John Morrell and Company, Ottumwa, and Ray O.
Bailey, president, Jasper County Savings Bank, Newton. Stand
ing— c. B. McClelland, John Morrell and Company, Ottumwa,
and Dale E. Sharp, vice president, Guaranty Trust Company,
^
New York.
12. Nathaniel M. Symonds, vice president, Northern Trust
Company, Chicago; Honorable Thomas E. Martin, congressman
from 1st District, and candidate for United States Senator, Iowa
City; W. W. Summerwill, president; Ben S. Summerwill, chair
man, both of Iowa. State Bank and Trust Company, Iowa City; *
(in the foreground) Edward P. Kautzky, vice president, Valley
Bank and Trust Company, Des Moines, and W. F. Schmitt, vice
president, Iowa State Bank & Trust Company, Iowa City.
13. Seated— Vincent Yager, vice president, and Richard H.
Wayne, vice president. Standing— Thomas C. Barnes, assistant
vice president; Gilbert McEwen, representative; Roland C. *•
White, representative, and Clark Cox, assistant vice president,
all of Harris Trust and Savings Bank, Chicago.
14. A model shows one of the latest fashion creations from
Paris.
15. Seated—Everett M. Griffith and Gerald O. Nelson, vice <
presidents; Calvin W. Aurand, president, and John deJong, vice
president. Standing—E. Stanton Miller and Michael J. Costello,
assistant cashiers; Harry L, Westphal, assistant vice president;
Harry G. Wilson, vice president and cashier, and Orville M. Gar
rett, vice president, all of Iowa-Des Moines National Bank, Des
Moines.
*

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American Institute of B a n k i n g
SECTION OF THE

AMERICAN BANKERS ASSCCIATION
ALSO SPONSORED 8'

Iowa News

M o re Pictures from the Iowa Convention
i

EXHIBITS at the Iowa Bankers convention were well at
tended and a number of the exhibitors are shown above. Left
to right in each photo are:
1. Clyde H. Hayward and Bruce E. Ingels, Des Moines, and
M. R. Pearson, Davenport, all with LeFebure Corporation.
2. J. H. Peterman, Boone, and Howard O. McCoy, resident
vice president, Lincoln, Nebraska, both with Colorado Credit
Life.
3. C. S. Beem, Ames, and James R. Rowen, manager, Des
Moines, both with Burroughs Corporation.
4. Jack A. Ludwig, Omaha; John P. Eager, manager, Kansas

City, and H. M. Breisch, Chicago, all of Recordak Corporation.
5. W. L. Ewald (seated), Davenport; C. H. Steinway, Water
loo; J. M. O’Connor, Cedar Rapids, and Bob Raven, Waterloo, all
of National Cash Register Company, and R. L. Becher, assistant
cashier, Union Trust and Savings Bank, Fort Dodge.
6. R. C. Howenstine, assistant manager, midwest bank division,
Mosler Safe Company, Chicago.
7. Arthur J. Radcliffe, Chicago, and M. I. Greenspan, agency
manager, Omaha, both with Cummins Business Machines Corpo
ration.
8. Ralph Rowan, Rowan Company, Des Moines.

Joins Staff

COMPLETE CORRESPONDENT
BANKING SERVICE

TO Y
NATIONAL BANK
Member Federal Deposit Insurance Corp.
=

"PARKING W HILE YOU BANK"

SIOUX CITY, IOWA

Nort hwest ern Banker, November, 1953
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Federal Reserve Bank of St. Louis

Joseph H. Wolfe, for the past three
years executive secretary of the North
Carolina Bankers Association, has
joined the staff of the American Bank
ers Association as assistant secretary
of the trust division and assistant to
the executive manager, it was an
nounced by A.B.A. Executive Manager
Merle E. Selecman.
Before his position as executive sec
retary of the North Carolina Bankers
Association, Mr. Wolfe was on the fac
ulty of the Law School of Washington
and Lee University at Lexington, Vir
ginia.

V-

• •«Exploring
MARQUETTE
Land
-rc

The
tiiizens
defend their
hank
During the last half of the
nineteenth century, the Independent
Bank was a new and struggling enterprise in
many communities throughout Marquette Land.
These banks possessed few safeguards and their
str o n g boxes became tempting targets for various
gangs operating in the Midwest.
Perhaps the most famous of these bank rob
beries took place in Northfieid, Minnesota in
1876. There a group under the leadership of
Jesse James attempted a daylight raid. A street
battle followed. When the smoke cleared away
two of the bandits lay dead and the rest were in
headlong flight.
Seventy-five years ago a successful hold up
might force a bank to close its doors. Today that
cannot happen. Various forms of insurance pro
tect the bank and its depositors. Banks, too,
work together to increase the safety and quality
of their operations.

Russell L. Sfotesbery
P r e s id e n t

Carl R. Pohlad

V ic e P r e s id e n t

For many years it has been Marquette’s privilege
to work with other banks. We know the prob
lems and requirements of the Independent Bank
and have developed specialized departments to
meet them. These are backed by resources large
enough to provide assured protection, in a bank
small enough to take a personal interest in you
and your bank.

DE P AR T ME NT OF BANKS AND B A N K E R S

STRONG FRIEND OF
THE INDEPENDENT BANKER

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Otto H. Preus

John 0 . C leary

V ic e P r e s id e n t

R e p r e s e n ta tiv e

Nort hwest ern Banker, November,

¡953

Iowa News

Shearer Retires
C. P. Shearer, long time Cumberland
banker, has announced his retirement,
because of ill health, as president and
director of the Cumberland, Iowa, Sav
ings Bank. One of the original incor
porators and directors, Mr. Shearer
has been associated with the bank
since its organization in January, 1905.
A native of Collins, Iowa, he grad
uated from Iowa State Teachers Col
lege in 1900, taught school in Iowa
until 1903 when he moved to Cumber
land and was engaged in the insurance
business until the organization of the
bank. He was named cashier in 1906,
and elected president in 1937.
Mr. Shearer’s interest in the bank

has been sold to local residents. Bank
officers indicated that meetings of the
new stockholders and the directors
would be held later to select a director
and president to fill the vacancies. J.
O. Stahl is cashier and C. C. Mills is
vice president.

Candidacy Announced
The candidacy of Ralph Eastburn
for election to the A.B.A. Executive
Council, to take place at the Iowa
convention in 1954, has been an
nounced. Mr. Eastman is president of
the Iowa State Bank and Trust Com
pany in Fairfield, Iowa.
Mr. Eastburn is secretary of Group
11 of the Iowa Bankers Association.

He is a past president of the JeffersonVan Burén Bankers Association, and
was a member of the State Banking
Board for four years.
Mr. Eastburn was born in Sigour
ney, Iowa, on May 13, 1901. He at
tended public schools in Delta, Iowa,
and graduated from St. John’s Military
Academy in Delafield, Wisconsin, and
Gem City Business College at Quincy,
Illinois, receiving a B.A. degree.
All of his banking experience has
been in Iowa. His first job was in
Charles City. Later he moved to Delta
as assistant cashier in the Peoples
Savings Bank. In 1932 he went with
the State Banking Department. In
1933 he joined the Federal Deposit In
surance Corporation as examiner, later
returning to the State Banking De
partment. In this capacity he was sent
to Fairfield in June, 1934, in charge of
closed banks.
He was elected executive vice presi
dent of the Iowa State Bank and Trust
Company at Fairfield in August, 1939,
and was later elected president in
1941.
Mr. Eastburn is married and has two
sons, Ben B., 29, and Charles W., 27.

On Board of Education

take your business to
somebody who wants it
That's a good rule to follow in choosing a bank
to do business with, too. First National in Sioux
City specializes in correspondent banking service.
We're eguipped to handle your account, and give
you the advantages of a banking connection in
a rich four-state trading area. Yes you can de
pend on complete and exacting correspondent
service when you deal with First National in Sioux
City. You see, we want your business.
JOE T. GRANT, President
HAROLD V. BULL, Senior Vice Pres.
WILLIAM L. TEMPLE, Vice President
EARL E. SNELL, Vice President
HAROLD H. STRIFERT, Cashier

EDWARD V. HOFFMAN, A ssf. V. Pres.
ERNEST A . JOHNSON, A ssf. V. Pres.
ERNEST A . KENNY, JR., A ssf. V. Pres.
HOMER V. GARRETSON, A ssf. Cashier
GEORGE D. VINSON, A ssf. Cashier

Carl L. Fredricksen, president of
the Live Stock National Bank in Sioux
City, has been appointed a member of
the Iowa Board of Education. The
appointment was announced by Iowa
Governor William S. Beardsley. The
board has jurisdiction over state-sup
ported educational institutions.
He succeeds Robert P. Munger,
Sioux City attorney, who resigned due
to ill health. Mr. Fredricksen is serv
ing the remainder of Mr. Munger’s
term, which will expire June 30, 1957.

Stock Dividend
Information from G. H. Ballard, vice
president and cashier of the Peoples
Savings Bank, Wellsburg, Iowa, tells
of a 100 per cent stock dividend, in
creasing the capital from $25,000 to
$50,000. The capital structure now
stands at capital, $50,000; surplus, $75,000; and undivided profits and re
serves at $67,000.
The Northwestern State Bank,
Orange City, also by stock dividend,
increased its capital from $65,000 to
$ 100,000.

At Lohrville
BANK
|N

S I O U X CI T Y

M em ber F e d e ra l
M em ber Fe d e ra l

R eserv e S yste m

Deposit Insuran ce

Northwestern
Banker, November, 1953

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

C orporation

Elmer McClure, special assistant of
County Assessor F. K. Willoughby at
Rockwell City, has accepted a position
with the Lohrville, Iowa, Savings
Bank, and started his work there No
vember 1.

turns -»?.

OFFICERS

ROLFE O. W AGN ER
Chairman of the Board
RAYMOND G. MILLER
President
J. N. COFFEY
Vice President and Trust Officer
GEO. RADCLIFFE
Vice President

mmmwmm

2 S 5 5 S S 5 1*'

■SHSSB
a ssü
sssmm
»»Mr

C. ALLEN EVANS

Next time business or pleasure brings you to Des Moines, stop
in at East Fifth and Locust and see the many changes we have
made in recent months. As the climax of our 75th anniversary

Vice President
W ARREN FERGUSON
Vice President
FRANK J. TAMSE
Cashier

this year, we have done some extensive remodeling. The latch

FRED C. SUTTON

string is always out at Des Moines' Drive-In Bank, and if we can

O . LEE MINEAR

help in any way to make your visit more pleasant, our officers

MARVIN VERMIE

Assistant Cashier
Assistant Cashier
Assistant Cashier

and entire staff will appreciate the opportunity.

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Federal Reserve Bank of St. Louis

Northwestern Banker, November,

1953

Iowa News

Lisbon Bank Sold
Sale of the Stuckslager stock inter
est in the Lisbon, Iowa, Bank and
Trust Company, to a group of local
people took place last month.
Operation will continue under the
same management with the same offi
cers and directors, with the exception
of Leoral Evans, assistant cashier, who
joined the Mount Vernon Bank and
Trust Company in the same capacity.
The Stuckslager family is with
drawing from Lisbon business circles
after a continuous and successful op
eration over a period of 79 years.
The banking firm of Stuckslager and
Auracher, which consisted of the late
Harrison Stuckslager and Gottlieb
Auracher, began the banking business
in Lisbon in October, 1874. The sons
of these men, Willard C. Stuckslager
and John Auracher, continued the
business until their deaths.
Officers are: President, H. A. Rieger;
J. A. Fordyce, vice president; and
Harry W. Sizer, vice president and
cashier. Present directors are: Dr. J.
R. Gardner, John McHugh, Everett
Ferguson, H. A. Rieger, S. W. Wilder,
Jay Fordyce and H. W. Sizer.

Elgin Changes
A number of changes have been
made in the official family of the Elgin,
Iowa, State Bank. These were neces-

BANKS L°dUsG
oH
L;
A CONFIDENTIAL,
F O U N D E D ON 25

PERSONAL SERVICE
YEARS EXPERIENCE

B a n k e r s S er v ic e C o m p a n y
HENRY H »YERS. P , „
Lock lo> U 3 J
DES MOINES 5 IO W A

N ■ SHAFFER V P

E G U N TIED !. V P
Lock to * M i l
COLORADO SPRINGS COLO

sary due to the recent death of Ernest
Sehori, board member and president
for many years.
Max Thoma has been advanced from
vice president to president and Charles
Capper is the new vice president. The
vacancy on the board has been filled
by naming W. S. Rothlisberger. He
was a former board member but re
signed about eleven years ago when
he moved to Wichita, Kansas.
This again makes a complete roster
of officers. Other board members be
sides these are: G. J. Mosby, George
Hanson, F. C. Muehlethaler and Thos.
Pollock.

Sells Two Banks
Announcement was made by Guy F.
Wilde that he had disposed of his bank
stock holdings in the First National
Bank of Fonda and the Pomeroy State
Bank, both in Iowa.
Mr. Wilde has been associated with
the First National Bank as vice presi
dent and president since 1920, being
elected vice president in that year and
becoming president of the bank in
January of 1936.
Mr. Wilde became associated with
the Pomeroy State Bank in 1946 and
was vice president of that bank.
His stock holdings at Fonda were
purchased by A. M. Kuhl and Walter
W. Stege and Mr. Kuhl has been
elected as president of the bank. A. L.
Anderson, a director, was elected vice
president and Mr. Stege has been
elected as cashier, and also appointed
as a member of the board of directors.
Other members of the board of di
rectors are W. F. Neavin. Richard W.
Baskerville, James Murphy and A. M.
Kuhl.
Mr. Wilde’s stock holdings at Pome

How to Help Y our Farm er Custom ers
As shown by the farm survey in this issue of the NORTH
WESTERN BANKER, hankers are keenly interested in the
success of their farmer customers.
One way in which hankers can further assist their farmer
friends is to send them

FA R M IN G F O R P R O F IT
As Minor P. Baird, president of the Farmers State
Bank, Superior, Nebraska, says
" F a rm in g fo r P rofit is som ething I had been lo okin g fo r .
fo r a long tim e. W e are obtaining fin e results and I fe e l
w e are ren d erin g our territo ry a v e ry valu a b le service

If you would like more information about this
service, please write us now. There is no obligation, of
course.

(Doom ClqA kidtiihal
Dept. 8 3 B, 3 0 6 Plymouth Bldg.

Northwestern
Banker, November, 1953
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Federal Reserve Bank of St. Louis

9nc.

DES MOINES 9, IOW A

roy were purchased by A. M. Kuhl and
W. K. Wiewel. Mr. Wiewel being a
former resident of Fonda and the for
mer assistant cashier of the First Na
tional Bank of Fonda. Mr. Kuhl will
continue as president of the Pomeroy
State Bank and Mr. Wiewel will be the
executive vice president and cashier
of that institution. A. A. Nahnsan,
assistant cashier of the Pomeroy State
Bank, will continue in that position.

County Election

Paul Claussen of the Farmers Sav
ings Bank at Ricketts, Iowa, was
elected president of the Crawford
County Bankers Association. He suc
ceeds Ted Federsen of the Crawford
County Trust and Savings Bank of
Denison.
Mr. Claussen and other officers were
elected at the annual meeting. The
other new officers are Henry Linduski
of the Westside State Savings Bank,
vice president, and Howard Qualheim
of the Crawford County Trust and Sav
ings Bank, secretary-treasurer.

Studying at Harlan
Visitors at the Harlan, Iowa, Na
tional Bank recently may have noticed
a strange young man with a pleasant
smile and a slight Danish accent. He
is Christian Larsen of Faaborg, Den
mark, an exchange student who is in
this country to study the American
banking system.
Chris, who is 23, has had several
years of experience working in a bank
at Faaborg. His training for that job
was obtained by attending commer
cial night school where he studied
bookkeeping. His two years of ad
vanced schooling followed his comple
tion of the required grade schooling
which the Danish students attend until
they are fourteen years of age.

J. A. Cook
.J. A. Cook. 67, cashier of Le Mars,
Iowa, Savings Bank for the last 43
years, died recently after a week’s
illness.
Born in Arizona, he attended Westmar college and became associated
with the bank in 1910. Two daughters
and a sister survive.

Banker 47 Years
October 1 was a very special day for
Johnnie Rake as, on that date 47 years
ago. he entered the banking business
in the town of Rake, Iowa, at the age
of 16 years. He was employed at that
time by the Rake Banking Company
which was being operated by his
uncle, A. A. Rake. This private bank
was converted into the Rake Savings
Bank in 1914 and in 1915 Johnnie Rake
became the cashier, a position he has
held ever since. He is one of the
directors.

Statem ent o f Condition
September 30, 1953
LIABILITIES

RESOURCES

Capital Stock................................$ 5,000,000.00
Surplus......................................... 18,000.000.00
1,501,590.90
Undivided Profits........................
Reserve for Contingencies..........
1,971,916.50
Reserve for Interest, Taxes, etc....
2,194,424.50
Income Collected but not earned....
2,290,065.33
Letters of Credit and Acceptances
1,506,176.48
Bills Payable................................ 22,500,000.00
Deposits ..........................
400,404,550.88

Cash and Due from Banks.$132,095,683.42
U. S. Government Obligations. 117,877,889.02
Other Bonds & Securities. 32,320,404.82
Loans & Discounts........... 169,061,876.09
Less: Reserve for Possible
Future Losses...........
2,396,4-18.60
Stock in Federal Reserve Bank....
690,000.00
Customers’ Liability on
Acceptances..................
1,506,176.48
Income Earned but not Collected
1,082,902.10
Banking House.......................
3,000,000.00
Other Resources..............
130,211.26

Total Liabilities..... ............. $455,368,724.59

Total Resources.....................$455,368,724.59
United States Government and other securities carried at $94,039,508.59 are pledged to secure public
funds and trust deposits and for other purposes as required or permitted by law.

DI R E C T OR S
D e W alt H . A n k e n y

T h o m a s L . D a n ie l s

T h e o . H am m B rew in g Co.

A rch er-D an iels-M id lan d
C o m p an y
D on a ld C . D a yto n

Vice President,

J am es F. B e ll

President,

Chairman, Committee on
Finance and Technological
Progress, G eneral M ills, In c.

President and
General Manager,

B e n t o n J. C a s e

President,

President,
Ja n n e y , Sem ple,
H ill & C o m p a n y
C laren ce R . C han ey

Executive Vice President,
O rch estral A ssociation
o f M p ls., Inc.

T h e D a y to n C o m p an y
Ste p h e n P . D u ff y
O ur O wn H a rd w a re
C o m p an y
John B . F aeg re
F ae g re and B en son ,
A tto rn e y s

President,

G e o r g e B . C l if f o r d , J r .

M inn esota & O ntario
P ap er Co.
F r a n k T . H e f f e l f in g e r

W h eat C orporation

F . H . P e a v e y and Co.

Treasurer, T h e C ream o f

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Federal Reserve Bank of St. Louis

Chairman of Board,

F . P e a v e y H e f f e l f in g e r

L u c ia n S . S t r o n g

F . H . P e a v e y and C o .
C l a r e n c e E . H il l
H a rris U p h am & Co.
F r a n k P . L e s l ie

T h e Stro n g S c o tt
M an u fac tu rin g C o.

T h e Jo h n L eslie P ap er C o.

President,

Executive Vice President,

President and Treasurer,
D . J. S t r o u s e

Retired

President,

H arold W . Sw e att

G o o d r ic h L o w r y

M inn eap olis-H oneyw ell
R e g u la to r C o m p an y

Executive Vice President
R o b e r t F . P ack

Chairman of Board,
N o rth ern S ta te s P o w er
C o m p an y
Joh n S . P il l s b u r y

Director,

P illsb u ry M ills, In c.
J o s e p h F . R in g l a n d

President

H a ro ld H . T e ar se

Vice President and
General Manager,
S earle G ra in C o m p an y
J. C a m e r o n T h o m so n

President,
N o rth w e st B an co rp o ratio n
V a l e n t in e W u r t e l e

Chairman of the Board,
M inn esota P ain ts, In c.

N A TIO N A L B A N K O F M IN N E A P O L IS
Marquette A venue

Sixth to Seventh Streets

Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, November, 1953

Iowa News

Brenton Open House
Nearly 900 guests from all over Iowa
and neighboring states last month
helped Brenton State Bank commem
orate a double anniversary in Dallas
Center at an afternoon and evening
open house.
The event was in observance of the
one hundredth anniversary of the ar
rival of the Brenton family in Dallas
county and the eightieth anniversary
of Brenton State Bank.
Bronze plaques of Dr. J. B. Brenton,
William H. Brenton, Charles R. Bren
ton and Clyde E. Brenton have been
installed on a bank wall to commem
orate the anniversaries.
Dr. Brenton, a physician for 38
years, came to Dallas Center in 1853.
■Oldest in Des Moines«

Des Moines Savings
and l oan Association
Current
High

3%
Dividend
2 1 Ö 6th Ave.

Investments
Insured
To
$ 10,000
Dial 2-8303

MERCHANTS

BONDING
COMPANY
Incorporated 1933

William H. Brenton, his son, who was
a farmer and livestock raiser, became
interested in banking. He founded the
present bank in 1873 with two part
ners.
In 1888, he bought out his partners
and formed a partnership with his two
sons, Charles R. and Clyde E. Bren
ton. W. Harold Brenton, president of
the bank in Dallas Center and State
Bank of Des Moines, is a son of
Charles R. Brenton.
W. Harold Brenton also is head of
nine other Iowa banks, and is presi
dent of Brenton Brothers, Inc., which
owns and operates several thousand
acres of Iowa farm land in the produc
tion of grains and livestock.
Highlighting the open house were
displays of Dallas Center pictures and
bank instruments nearly 100 years old.
The bank awarded $150 in savings
bonds to those furnishing the oldest
articles.
Included in displays was an exhibit
of coin and currency, from Colonial

Helen

Birmingham Kane

Lecture Recitals Available
“ Helen Kane is a splendid pianist and con
vincing musician. Her distinct personality
should interest any audience.”
Rudolph Ganz, President
Chicago Musical College

Many o f you attended the Sunday
evening lecture-recital at the Iowa
B a n k e r s C o n v e n t i o n featurin g
Helen Kane.

Available for Concerts
4 14 5 Greenw ood D riv e
P h o n e 5-0778

Des M oines

days to the present, from Chase Na
tional Bank, New York, N. Y.

Open House
Over 2,000 persons visited the new
installment loan department when the
First National Bank of Fairfield, Iowa,
held “open house” recently.
Flowers were presented to the ladies
and cigars and candy bars to the men
and children.
The new department, under the di
rection of Earl Rodibaugh, is located
in the basement of the bank building.
The area occupied by the department
was completely remodeled and refinished before the opening.
Bank officials voiced their apprecia
tion to all those who took part in the
opening and to those who visited the
new department.

Banking Hours
A new schedule of banking hours for
the Harcourt Savings Bank at Harcourt, Iowa, went into effect recently.
By a recent decision of the bank’s
directors, the hours of the bank are
9 a.m. to 3 p.m. Mondays through Fri
days, and 9 a.m. to 12 noon on Satur
days.

Elected Vice President
John B. Keeline, president of Cen
tral Trust and Savings Bank, Chero
kee, Iowa, was appointed state vice
president for Iowa at the American
Bankers Association convention.
Mr. Keeline heads the organization
committee for Iowa for the coming
year.

Resigns
Being well

Miss Edna Mae Fideler has resigned
her position as teller at the First Trust
& Savings Bank, Remsen, Iowa, and

dressed depends
on more

Home Office
2100 GRAND A V E N U E

than appearance.

Des Moines, Iowa

The man who
wears Frankel
This is Iowa’s oldest surety company.
A progressive company with experi
enced, conservative management.
We are proud of our three hundred
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.

S il
»«as
V- i

Nort
hwest ern Banker, November, 1953

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

M E S T A B L IS H E D K
?
S T A T IO N E R S V
1889 y BOOK BINDERS
OFFICE OUTFITTERS
7,— BUSINESS MACHINES

G rand Av e . at Fourth

De s M o in e s , Ia

Kuppenheimer
Clothes also feels

OFFICE FORMS

well dressed,

BOUND BOOKS

knowing that no

CATALOGS
RULED FORMS

man looks better

COLOR PRINTING

than he does!

LOOSE LEAF
WIRE BINDING

FR A N K EL S
DES MOINES

County and
Municipal Supplies

fowa News
has accepted a similar position with
the First Federal Savings & Loan
Association in Sioux City.
Miss Fideler started as a bookkeeper
in the local bank immediately after
graduation from St. Mary’s High
school 10 years ago.
Mrs. Don LeMoine, formerly with
the First Trust, is back with the bank,
temporarily.

PREPARED. . . by more than 51 years of experience, the
Waterloo Savings Bank is rendering the kind
of dependable correspondent service you have

Daughter o f O. E. Markitan
Is Married

a right to expect and get.

Last month the eldest daughter of
O. E. Markitan, Miss Mary E. Marki
tan, was married to Donald R. Erger
of Walford, Iowa.
The ceremony took place at 10:00
a. m. at St. Mary’s Church in Solon,
Iowa, and a reception for some 130
friends and relatives took place at the
ifhditorium at 12:30 p. m. In the eve
ning, also at the auditorium, dancing
was enjoyed by all of the guests and
friends of the bride and bridegroom.
O. E. Markitan, father of the bride,
is cashier of the Solon State Bank at
Solon, Iowa.

BANKING HEADQUARTERS SINCE 1902

SAVI N G S B A N K
M em b er —
F e d e ra l

In su ra n c e

C o rp o ra tio n

WATERLOO, IOWA

MODERNIZED . . .
(Continued from page 19)
also had the danger strip printed on
the statement stub. We kept the check
entry and check count on the state
ments as we have found this helps
prevent giving out statements with
the wrong checks. We also have the
“ by” on the statement sheet so if
there is a complaint we can tell which
clerk made up the statement. We, of
course, have the customer sign the
statement stub which acts as our re
ceipt for the statement issued.
All in all we believe we have made
several improvements besides getting
neater sheets. We know that the book
keepers have made fewer mistakes and
this in itself has paid us well for the
changes.—The End.

U n b e l i e v a b l e but true,
many brick ground floor
villas with bedroom, living
r oom, e l e c t r i c kitchen,
tile bath, completely fur
nished, $59.50 weekly. Two
and three-bedroom villas
s l i g h t l y higher. A tth e
ocean, playgrounds, shop
ping center, private coun-

John W. Peniston has been trans
ferred to the correspondent division as
a special representative of the First
National Bank, Kansas City, in north
ern Missouri, Illinois and Iowa. Mr.
Peniston has lived in Kansas City all
his life and has been with the First
National Bank since 1920. Mr. Penis
ton joined the bank after attending

tr * C,ub'

SCARBOROUGH Associates G roup Insurance Plan

Fe d e ra l R e se rv e S ystem a n d

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complete benefits at lowest cost. It is a loyalty builder.

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

Free booklet.
Write today.

P R O V ID IN G
TAL

DEATH

GROUP
AND

LIFE, A C C ID E N

D IS M E M B E R M E N T ,

A C C ID EN T A N D

S IC K N E S S , H O S P IT A L

AND

BEN EFITS

S U R G IC A L

FIRST N ATIO N AL BANK BU ILD IN G , CH IC A G O 3 , IL L IN O IS
Nort hwest ern Banker, November, 1953

100

Iowa News

WANT ADS

Rates 20 cents per word per
insertion. Minimum: 10 words.
NORTHWESTERN BANKER
527 7th St. Des Moines, Iowa

lBE A

Kansas City Junior College two years.
He has worked in all departments of
the bank and has been in auditing
and discounts the past seven years.
He was in the army two and one-half

/£*Èi7

LellsII
I How

300

Law

Bldg.

Dept.

Kansas

City,

50
80
61
40

E
................................................. 99

m aking: su b sta n tia l in c o m e s . S tart and ru n y o u r
BOOHl
o w n b u s i n e s s q u i c k l y . M en , w o m e n o f a ll a g es,
lea rn e a s ily . C o u rse c o v e r s S a les , P ro p e rty
M a n a g e m e n t, A p p r a is in g , L oa n s, M o rtg a g e s, and
r e la te d s u b je c t s . S T U D Y A T H O M E o r in c la s s ro o m s in le a d in g c it ie s .
D ip lo m a aw a rd ed .
W r ite TODAY f o r fr e e b o o k ! N o o b lig a t io n .
A p p r o v e d f o r W o r ld W a r I I and K orea n V etera n s
W E A V E R S C H O O L O F R E A L E S T A T E (E st. 1 9 3 6 )
Suite

Ellinor V illa ge

F irst of Iow a Corporation...........................
F irst National Bank of A riz o n a ................
First National B ank— C h icago..................
F irst National Bank in D a lla s..................
First National Bank— K ansas C ity .........
First National Bank—-L in c o ln ..................
F irst National Bank— O m aha....................
First National Bank—-St. Joseph..............
F irst National Bank— Sioux C i t y ...........
F irst National Bank and Trust Com
pany— Tulsa .................................................
Frankel Clothing C om pan y.........................

B R O K Ej ? '

PAYS
BIG! S EN D
FOR
FRE E,
BIG,
ILLUS
TRATED
CATALOG
NOW!
G rad u ates re p o rt

Dornberger and C om pany...........................
Douglas, John, and Company, Inc...........
D ouglas-G uardian W arehouse C orp .. . .
Drovers National B a n k ..................................

4-4
83
35
9
68
78
74
69
94
65
98

Great Northern Insurance C o m p a n y ... 50
Guaranty Trust Com pany..........................
S

Mo .

Hanover Bank, T h e ........................................ 37
Harris Trust and Savings B a n k .............. 42
Honor Roll B anks— N eb rask a.................. 76
I

Imperial Bank of C anada............................. 34
In ter-State N ational Bank of K ansas
«.
City ................................................................... 69
Investors Diversified Services, I n c ......... 44
Iow a-D es M oines National B a n k ...............104
Iow a Lithographing C om pany................... 100
Irving Trust C om pany.................................. 33
J

Jaeger M anufacturing C om pany.............
J O H N W . P E N IS T O N
Correspondent d ivision

years during World War II and spent
most of that time in ordnance work
in the European theater.
Mr. Peniston succeeds Herman Dresker, who has been transferred to the
southwest territory.

IN D E X OF
A O V E ItT IS F H S
NOVEMBER. 1953

IOWA LITHOGRAPHING • COMPANY

Acorn P rinting Co............................................ 100
Allied M utual C asualty C om pany........... 50
American National Bank— St. J o sep h .. 77
Am erican N ational Bank and Trust Co. 32
American Trust Co.— San F r a n c is c o ... 41

B
Q U A L I T Y - E X P E R I E N C E

• S E R V I C E

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

Sale: Diebold triple time lock
safe, nest of 100 steel type safety
deposit boxes, two reconditioned
Brandt money changers, one John
son Lightning money changer, two
reconditioned Staats money chang
ers, two reconditioned Cummins
check cancellers, late model Todd
keyboard check protector, late
model Paymaster check protector,
two steel Kardex cabinets, 8-column
Victor adding & substracting ma
chine.
C. A. DOYLE
316 Gibson Street, Eau Claire, Wis.
For

Northwest ern Banker, November, 1953

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

Bank of A m e r ica ............................................. 25
Bank of M on trea l............................................. 57
Bankers Security Life Insurance
Society ............................................................ 48
Bankers Service Company, Inc.............. 68-9G
Bankers Trust Company— Des M o in e s.. 87
Banks, W illia m H., W arehouses, I n c ... S3
Burroughs Corporation, T h e ...................... 39
C
Capital City State B a n k ............................... 95
Central National Bank and Trust C o ... 12
Central Republic C om pany......................... 81
Central States M utual Insurance A ssn .. 51
Chase National B a n k ...................................... 27
Chemical Bank and Trust C o m p a n y ... 54
Christm as Club, A C orporation.................103
City National Bank and Trust Company
-—-Chicago ........................................................ 80
City National Bank and Trust Company
— K ansas City ............................................. 38
Colorado Insurance G roup ........................... 51
Continental H otel .......................................... S3
Continental Illinois National Bank and
Trust Company .......................................... 31
Continental National B ank— L in c o ln ... 82

I)
Davenport, F. E., and C om pany..7 9 -8 2 -1 0 0
DeLuxe Check Printers, Inc........................ 61
Des Moines Savings and Loan A ssocia
tion, The .......................................................... 9S
Diebold, Inc.......................................................38-83
Doane A gricultural Service, Inc............... 9 6

K irkp atrick-P ettis Company ....................
Koch Brothers .................................................

80
98

LaM onte, George, and S on...........................
Lawrence W arehouse Com pany................
Lee P lastic ........................................................
LeFebure Corp...................................................
Live Stock National Bank— C h ic a g o ...
Live Stock National Bank— Omaha . . . .
Live Stock National B ank— Sioux City.

29
36
40
72
26
84
58

M anufacturers Trust C om pany................ 45
M arquette National B a n k ........................... 9 3
Merchants M utual Bonding Company. . 98
Merchants National B a n k ...........................
2
Midland N ational B a n k ................................. 56
M innesota Commercial M en’s A s s n . . . . . 56
Monroe C alculating Machine Co., I n c ... 81
Mosler Safe C om pany.....................................4-5
Mutual Fire and Autom obile Insurance
Company
........................................................ 4g
N

National Bank of C om m erce......................
National Bank of T u lsa ...............................
National Cash R egister Com pany...........
National City Bank of New Y o r k ...........
National Company of O m aha....................
North Central L ife Insurance Company
Northwest Security National B a n k . . . .
Northwestern National B a n k ....................

79
62
14
28
81
3
60
97

O
Omaha N ational B a n k .................................... 23
Orchard & W ilh e lm ........................................ 72

n
Recordak Corporation ..............................52-53
Republic National Bank of D a lla s.........
6
R oyal Bank of C anada................................. 64
S
St. Paul-M ercury Indem nity Company. . 49
St. Paul Term inal W arehouse Company 46
Scarborough and C om pany.............. 47-76-99
Schweser, Robert E., C om pany................ 80
Smead M anufacturing Company, I n c ... 57
Smith, Polian and C om pany...................... 81
Stock Yards National Bank— O m a h a ... 73
T

Toy National B a n k . . .

LTnion Stock Yards C om pany....................
United States Check Book Co...................
United States National B a n k ....................

75
79
66

V
V alley Bank and Trust Com pany...........
V alley National B ank— P h oen ix.............

89
26

W
W alters, Charles E., C om pany.................. 77
W aterloo Savings B a n k ............................... 99
W ea ver School of Real E s ta t e ...................100

101

Dry Sky
“ The water shortage out west is real
ly serious this time.”
“ How do you know?”
“ I just got a letter from Texas and
the stamp was fastened on with a
paper clip.”
Utensil
When a diner complained that he
couldn’t eat the soup that had been
- brought him, the waiter called the
manager.
“ I’m very sorry, sir,” said the man
ager. “ I’ll call the chef.”
, When the chef arrived, the diner
still insisted that he couldn’t eat the
soup.
“What’s wrong with it?” demanded
the chef.
“Nothing,” calmly answered the
diner. “ I just don’t have a spoon.”
Platter Patter
We live in perfect wedded bliss:
No grief, no gripes.
The way we manage it is this:
I wash, she wipes.
Great Achievement
If you systematically save a part of
your salary every week for ten years,
** at the end of that time you’ll be an
exception.

Enemies
“ How long was your last cook with
you?”
“ She never was with us. She was
against us.”

W rong Father
A Protestant pastor was walking
down the street, wearing as is often
, done, a Roman collar. Two Catholic
boys came along.
“Morning, Father,” said one of them.
“ Sh-h,” cautioned the other, “he ain’t
no father. He’s got a wife and two
) kids.”
Winter Blues
“ Back from vacation, eh? Feel any
change?”
-*
“ Not a penny.”

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

Don't Swallow Hard
A little old lady approached the
sword swallower at the conclusion of
his performance.
“You must be terrified while that
horrible thing is inside you,” she said.
The sword swallower gazed at her
thoughtfully, then he widened his
eyes and replied softly, “Only when
the crowd applauds, madam. I'm
afraid I might forget and take a bow.”
She l ook Him Literally
A shipyard worker was teaching a
new lady riveter what to do. “ I’ll hold
the rivet,” he said, “and when I nod
my head, you hit it with the sledge
hammer.”
He left a widow and three children.

C O N 1 E N T IO N S
November 4-5, Mid-Continent Trust
Conference, Drake Hotel, Chicago.
November 10-11, Annual Convention,
Nebraska Bankers Association,
Omaha, Hotel Fontenelle.
November 10-11. Bank M a n a g e m e n t
Clinic, South Dakota Bankers As
sociation, Marvin Hughitt Hotel,
Huron.
November 30-December 5, Investment
Bankers Association of America,
Hollywood Beach Hotel, Holly
wood- Florida.

1954
January 25-27, ABA National Credit
Conference, Chicago, La Salle Ho
tel.
February 8-10, ABA Mid-Winter Trust
Conference, Waldorf-Astoria, New
York City.
May 10-12, Missouri Bankers Assn.,
Jefferson Hotel, St. Louis.
May 12-14, Kansas Bankers Assn., Kan
sas City, Missouri.
May 21-22, North Dakota Bankers
Assn., Hotel Dakotah, Grand
Forks.
May I dates to be announced), Annual
Convention South Dakota Bankers
Association, Deadwood.
June 14-15, Minnesota Bankers Assn.,
Hotel St. Paul, St. Paul.
June 21-23, Wisconsin Bankers Assn.,
Hotel Schroeder, Milwaukee.
October 18-21, National Assn, of Bank
Auditors and Comptrollers, San
Francisco.

Post-Mortem
Home from the Capital, a business
man looked out the window and saw
a big log floating down the river. He
pointed it out to a friend. “See that
log,” he said. “That’s just like Wash
ington. If you examine that log close
ly you’ll find 10.000 ants on it—and
each one thinks he’s steering it.”
Not Worried
“ I hope you’re not afraid of mi
crobes,” apologized the bank teller, as
he cashed the school teacher’s check
with soiled currency.
"Don’t worry,” said the young lady
grimly, “a microbe couldn’t live on my
salary.”
For Women Drivers Only
“Well, dear,” sighed the head of the
house, after viewing the crumpled
fender, “ did the officer scold you for
driving upon the boulevard?”
“No, he was just lovely, John,” ex
plained the new driver. “He said the
city really planted those 1,260 trees
along Ash Street just to keep lady
drivers from getting up on people’s
front porches.”
l akes Time
Two small boys put their hands side
by side.
“Hah! Mine’s dirtier’n yours,” said
one.
“Well,” said the other, “you’re a year
older’n me.”

Use an Axe
Mr. .Just Wed: What’s wrong with
this cake, dear, it tastes gritty?
Mrs. Just Wed: Don’t be silly, dar
ling. The recipe calls for three whole
eggs and I guess I didn’t get the shells
beaten up fine enough.
Indecent
Farmer to His Wife: Now that
we’ve struck oil, you’re going to have
some decent clothes.
Wife to Farmer: Nothing doing!
I’ve worn decent clothes all my life.
Now I’m going to dress like other
women.
Nort hwest ern Banker, November,

1953

102

LEGAL

Is W aiver of Notice Legal Whea
Selling Chattel A fter Default?
Q.

A bank took a chattel mortgage
on certain personal property belong
ing to Jones as security for a loan to
him. Jones defaulted. The mortgage
provided the bank could sell the prop
erty on due notice and that the mort
gagor waived notification concerning
the sale. Was this waiver provision a
valid one under the general rule of
law applicable to such situations?

wife and her husband both worked
and she used her own money to pay
household expenses in circumstances
where she did not at the time intend
that they would be repaid to her. His
problem was whether, on her death,
such outlays could be recovered for
her estate. Could they?

Yes. As a general rule a chattel
mortgagor need not be notified of a
foreclosure sale of the chattel when he
has specifically waived such notice in
the mortgage instrument. The Su
preme Courts of Iowa and Nebraska
are among the appellate courts that
have held in accordance with this
general rule. Other states in which it
has been recognized and followed in
clude Kansas, Michigan, Ohio, Okla
homa, Texas and Wyoming.

In connection with the establish
ment of a South Dakota paint manu
facturing concern Jones made a loan
of $3,000 to it, taking a promissory
note due in six months signed “ Rich
ard Roe, President, Hutchinson Paints,
Incorporated,” and “John McCoin.”
The latter was interested in the new
company. The note was not paid and
Jones sued McCoin who sought to es
cape liability on the ground that he
had received no consideration for the
transaction. Should McCoin prevail?

No. In a similar situation involving
closely related facts the South Dakota
Supreme Court has held recently that
the defendant unquestionably received
valuable consideration, as contem
plated by law, for signing the note;
that it was not necessary that the con
sideration move directly to him; that
a consideration is valid though it
moves to a third person; and that it
was sufficient to make the defendant
liable that his comaker receive the
funds paid over by the plaintiff for
the note.

Q . Liability, collision and other simi
lar automobile insurance policies have
long contained clauses relieving in
surance companies
from
liability
where the vehicle is used to carry
passengers for compensation. Because
Digitized forNorthwestern
FRASER
Banker, November, 19S3
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LEGAL DEPARTMENT
of the
NORTHWESTERN BANKER

of the wartime, share-the-ride move
ment and for other reasons, insurers
have sought to write a more liberal
and realistic provision. Many policies
now exclude liability only when the
car is in “use as a public livery or
conveyance.” Suppose a bank em
ployee has insurance containing the
new clause and does not hold himself
out to the public to transport for hire
but occasionally let two fellow em
ployees buy his gasoline on hunting
trips. Is he covered by the insurance?

Yes. The test applied by the courts
to the clause in question is whether
or not the insured vehicle has been
held out to the general public for
carrying passengers for hire and at
the time of the accident was actually
so used. An occasional or incidental
use of the insured vehicle to transport
passengers will not avoid liability
under the clause, as such use does not
constitute a holding out for hire of
the vehicle to the general public. The
Nebraska Supreme Court already has
so ruled in interpreting the new
clause, as has Illinois, Michigan and
certain other jurisdictions.

A trust officer of a Minnesota
bank became involved in straighten
ing out an estate situation where a

No. It is generally true, as between
husband and wife, that the duty to
support the family rests on the hus
band. Where, however, a wife uses
her own money, or permits her husband to do so, to pay household ex
penses under circumstances which
disclose that she did not intend to be
repaid, she has no claim upon her
husband for such expenditures. The
Minnesota Supreme Court has so
ruled in a recent decision, citing vari
ous authorities, including the Illinois
Supreme Court, in support of its position.

A North Dakota municipal sew- ^
age plant came to be operated so neg
ligently that it was a nuisance and so
that it damaged a nearby farm owned
by a bank. The bank sought to re
cover its damages. The municipality
'
asserted as a defense that in operating
the plant it was engaged in a govern
mental function and was not liable
for negligence. Should the munici- r
pality be sustained?

No. The North Dakota Supreme
Court has so ruled recently in a simi
lar case. In doing so, it concluded that
f
a municipality is liable for damages
in an amount sufficient to compensate
for the injury where it purposely or
negligently so operates a sewage dis- .
posal plant that it becomes a nui- ^
sance and injures nearby property.
Kansas, Montana, Texas and Okla
homa precedents were cited by the
court in support of its position. a.
Through them it pointed out that,
where negligence reaches the level
that it becomes a nuisance, as was the
case here, a tort different in charac- ^
ter from mere negligence comes into ■
being and that a municipality should
be liable for injuries resulting from
nuisances which it purposely or neg
ligently creates.
+-

NOT JUST RICH PEOPLE. All People. Yesterday’s poor
people are today’s rich people. Today’s poor people are
tomorrow’s rich people. People’s dreams are your business—
you can help to make their dreams come true. You need
people and people need you. Christmas Club brings people
to your institution. Christmas Club is the full time business
of Christmas Club A Corporation— not a side-line. There

a definite "K n o w How” to educating the people in thrift
habits that lead to individual financial security.
"People are more important than m oney.” Christmas
Club, A Corporation builds savings— builds character and
builds business for financial institutions.

BUILDS

SAVINGS

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

•

BUILDS

CHARACTER

•

BUILDS

BUSINESS

FOR

FINANCIAL

INSTITUTIONS

ROUTE G R A I N DRA F TS T H RO U G H THIS B A N K
® As another large crop is being harvested, Iowa
Banks are invited to route grain drafts and other
items to this Bank for fast collection. You are
further invited to make full use of our personnel,
facilities, resources and experience to meet all of
your requirements as a correspondent Bank.
DEPARTMENT of BANKS and BANKERS
G ER A LD

N ELSO N
V ic e

IOW A S LARGEST BANK
FOUNDED 1868

STAN TON

EVERETT

P r e s id e n t

M IL L E R
A s s is t a n t

G R IF F IT H
V ic e

M IC H A E L
C a s h ie r

P r e s id e n t

CO STELLO
A s s is t a n t

C a s h ie r

TO TA L RESO URCES OVER ONE HUNDRED MILLION DOLLARS

I0WA-DES MOINES NATIONAL BANK

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

Member Federal Deposlf Insurance Corporation
: >

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