Full text of The Northwestern Banker : October 1919, Twenty-Fourth Year, Number 386

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THE

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m

1
1

OCTOBER, 1919

TW ENTY-FOURTH Y EAR
TOTAL NUMBER 386


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Federal Reserve Bank of St. Louis

THE

2

NORTHWESTERN

N o rth w estern N ational

October, 1919

BANKER

D ir e c t o r s
F. A. CHAM BERLAIN, Chairm ’n First & Sec’ty Nat Bank
E. W. D ECK ER, P res. N orthw estern Nationa JBank

Life Insurance Company

C. T. JAFFRAY, P res. First & Security N at’l Bank
T. B. JANNEY, P res. Janney, Sem ple, Hill & Co.

MINNEAPOLIS, MINNESOTA

E L. C A RPENTER, P res. Shevlin-C arpenter-C larke Co,
B. F. N ELSON, P res. H ennepin Paper Co.

JOHN T. BAXTER, P r e sid e n t

A. A CRANE, Vice-Pres First & Security N at’l Bank
J. A. LATTA, Vice-Pres. N orthw estern Nationa! Bank
JO H N T. BAXTER, Pres. N orthw estern N ai’l Life Ins Co

A

PURELY

MUTUAL,

OLD-LINE,

WESTERN

COMPANY

Long Time
Farm Loans

= Hanover
National
Bank
OF THE CITY OF NEW YORK
Nassau and Pine Streets
W IL L IA M W O O D W A R D .. P r e s i d e n t
E. H A Y W A R D F E R R Y ......... V .- P re s .
S A M U E L W O O L V E R T O N .. .V .- P r e s .
J O S E P H B Y R N E ..................... V .- P re s .
C H A S H. H A M P T O N ............V .- P re s .
H E N R Y P . T U R N B U L L ......... V .- P re s .
W M . E . C A B L E , J R ................... C a s h ie r
J . N IE M A N N ......................... A s s t. C a sh .
W IL L IA M D O N A L D .___ A 6 st. C a sh .
G E O R G E E . L E W I S ......... A s s t. C a sh .
F o r e ig n D e p a r tm e n t

W IL L IA M H . S U Y D A M ----- M a n a g e r
R O B E R T N E IL L E Y . .A s s t. M a n a g e r

The best proposition ever of­
fered for both borrower and
local correspondent.
This is the opportunity for a
live farm loan man in each lo­
cality.
Write for special circular and
terms.

LEAVITT & JOHNSON
TRUST CO.
WATERLOO, IOWA

Established 1851

Capital
•
•
$3,000,000
Surplus and Profits 18,000,000

OLDEST IN IOWA

22 Millions of Live Loans

The

Federal Land Bank
O m aha, N eb ra sk a

D, P. HOGAN.........................................President
E. D. MORCOM.....................................Treasurer
C.
M. GRUEN TH ER......................
Secretary
II. L. COREY.........................Attorney-Registrar
CAPITAL $2,219,380.00.
Our official statement for April 30th shows:
No.
No.
No.
Assns. Members.
Loans
Iowa ....................... 128
2,730 $14,385,430
Nebraska ................ 124
2,673
8,889.490
South Dakota . . . 79
1,799
5,495.950
Wyoming ............... 31
592
619,700
Total ................. 362

7,794

$29,390.590

The 128 associations in Iowa, with from 10
to 90 members each, cover ninety of the ninetynine counties of the state. Other states cov­
ered equally as well. Many loans in process
of closing will greatly increase membership.
At our May directors’ meeting, a dividend
of 6 % per annum on borrowers’ stock was de­
clared, besides placing 25% of our earnings to
Reserve Account.
Any banker desiring a connection with this
rapidly growing farm loan institution with a
constant and abundant supply of cheap funds
on long terms should write for territory without
delay.
W rite us for
Loan Bonds.

prices on

our 4 < /2%

Farm

Send Collections on

FIRST

« - NATIONAL - »
c w BANK
IN THE UNITED STATES

NORTHW EST IOWA
NORTHEAST NEBRASKA

New Business Invited

SOUTHEAST SO. DAKOTA

on the b a s is of

SOUTHW EST M INNESOTA

SA T ISFA C T O R Y SE R V IC E
to the

R esources O ver $3,000,000.00

FIRST NATIONAL BANK

FIRST NATIONAL BANK
Capital, Surplus and Profits $800,000.00

DAVENPORT, IOWA
IRVIN J. GREEN, Cashier


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Federal Reserve Bank of St. Louis

A. F. DAWSON, President

SIOUX CITY, 10WA

October, 1919

" ------ '

SIMON CASADY

■

... :.-.„l-ZZZZ

Chairman of the Board, Central State Bank, Des Moines
Mr. Casady might be termed the “ Prexy” of the Des Moines Training School
for Bankers. Probably more of his former “boys” are now executives of banks
in the Middle West than any other banker in America has turned out. For many
years, training under Mr. Casady has been the only passport required to a good
position in the excellent financial institutions of Iowa, and Des Moines has be­
come noted in recent years as the “training ground for Chicago bankers,” ao use
the words of Lucius Teter. Mr. Casady recently decided to take life a little easier,
becoming chairman of the board of the Central State Bank, and Grant McPherrin
being advanced to the presidency.


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Federal Reserve Bank of St. Louis

N

B

o r th w ester n

anker

709-710 C R O C K E R B U IL D IN G , D ES M O IN E S, IO W A
M onthly, $3.00 per y ear, 25c a copy. Entered as second-class m atter a t Des M oines post office to conform to the postal laws; everything else per­
taining to the journal being strictly first class. T h e oldest financial journal west of the M ississippi R iver and the only one in the U nited S tates
which is a m em ber of the A udit B ureau of C irculations.

Clifford De Puy

rir<^rr\r>T?T> m m

Special Representative
Charles Burke

Care Northwestern Banker

Frank Armstrong

U C 1 U B M C , 1V1V

Publisher

Minneapolis Office
Frank S. Lewis
840 Lumber Exchange Bldg.

Chicago Office
Herbert

Armstrong

410 Advertising Bldg.

Editor

New York Office
James Krieger
220 F ifth Ave.

St. Louis Office
R. Fullerton Place

118 Merchants-Laclede Bldg.

r
CONFIDENCE PLUS RESERVE.
fiThe banker who has confidence in himself and believes that he can make his institution a success
generally wins out. His reserve must consist not only of the money carried in his vault, hut a reserve
force which he, himself, carries in his personality which makes him likable and affable to his cus­
tomers. The man who believes in himself and has confidence in his ability generally inspires confi­
dence in others and wins their admiration and business. A recent writer said, “The world makes
way for the self-confident man. There is no use opposing him or trying to stop him. He ploughs
right thru everything, and reaches his goal. It is confidence in his power to reach the heights above
him that has lifted man up from the Hottentots to the big business men, the philosophers, the phi­
lanthropists of today. Business has triumphed largely upon credit, which represents the confidence
of the lender in the borrower’s power to repay. Our present civilization rests largely upon con­
fidence. There would be little safety, little progress, without it. Everybody would suspect every­
body else; all dealers would exact cash; nobody would trust anybody else. Why does our Govern­
ment hold billions of gold and other securities in reserve when the world knows that the United
States Government is good for any amount needed? Because this enormous reserve establishes con­
fidence in the public mind. It is held in the treasury to maintain the public confidence, just as busi­
ness men keep bank balances in order to maintain their credit at the bank, so that when they want
to borrow money they can do so. Your confidence in yourself is your greatest reserve. Every time
you admit a fear of anything you lessen this priceless reserve and imperil your success.” We have
known bankers who had such weak personalities that they neither had confidence in themselves
nor'inspired it in any one else and finally made a failure of their work and did not increase the
business of their institution. A reserve power plus confidence in your ability to succeed always in­
spires success in others and helps to place you and your institution on the high level toward success
and increased prosperity.
THE BANKER’S DUTY.
flAt previous times we have pointed out that it is the banker’s duty to advise his customers about
the kind of investments they should make. We wish to repeat at this time that we believe it is the
banker’s duty to assist his customers more than ever in choosing the kind of investments they make.
The country is flooded now with all kinds of propositions to extract hard-earned money from unsus­
pecting individuals for stock in some proposition that may or may not be worthy. In a recent re­
port from the Federal Trade Commission, they state that the Pan Motor Company has taken over
$4,700,000 from buyers of Pan Motor Car Company stock for which they will not receive a penny in
dividends of any kind. We realize, of course, that not every customer of a bank comes to the hanker
for advice when making investments but we do believe that the banker can assist even more than he
has in the past to give advice about investments and to assist customers with their surplus funds in
buying first mortgages or in worth-while investments that are gilt edge. Strange as it may seem, many
people who can make money do not know how to properly invest it. The banker’s duty, therefore,
is to safeguard the interests of the community and of his customers by helping them in every way
he can to handle their funds in the proper manner and not to invest them foolishly. We are in
receipt of a very interesting letter from a middle west securities company which states on its let­
terheads that they are “Specialists in Dividend Paying Investments.” We assume, therefore, that
they have many investments that are not dividend paying but they specialize in the first mentioned


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Federal Reserve Bank of St. Louis

■I

I

variety. The letter starts out as follows: “Would you care to risk $100 with me and my customers
in an oil pool if I can convince you that such a risk will more than likely prove to be a very profit­
able venture for you?” The second paragraph of their letter says, “The reason I invite you to join
me is because I want you to become acquainted with my methods of doing business. When you are
acquainted with my methods, I am confident you will decide to do a great deal of your investing
through me on my recommendations. I think it likely that you hold stock in several oil companies.
Some of them are probably showing you a profit; some of them are probably in the development
state; others are probably failures. That is the usual story. And if you have used good judgment in
making your investments you have probably made a big return on the total amount of money you
have invested in spite of the failures. One RIGHT investment can easily wipe out the losses of a
dozen failures. I do not know what investment has proven to be the record profit maker for
you. But I do have an idea that $100 in my oil pool can prove to be the biggest money maker of
any of your risks.” The letter winds up by saying, “This letter is sort of an introduction of myself
to you and I assure you that I hope we shall soon be better acquainted through making money for
you in my oil pool.” The letter in our judgment is a very clever thing, it is very subtly written and
the fact that one right investment can easily make up for a dozen losses is seductive argument indeed.
Many an individual who is getting 4 per cent on his savings account will be tempted to fall for such
arguments. It is, therefore, the banker’s duty not only to overcome this in every way he can be­
cause of the good it will do the customer, but also because he should protect the deposits in his own
institution. We have often thought that if hank advertisements could be written as beautifully
as letters offering oil stock for sale, that the hanks would be flooded with money. The trouble is
that in writing bank advertisements and soliciting funds the real hard facts are told in straightfor­
ward businesslike terms, but the man who has stock for sale in an unknown oil company can paint
a beautiful picture of it which naturally appeals to the imagination. The duty of every banker is to
overcome the selling arguments of wildcat concerns by proper inducement to the individuals of the
community to deposit their money in his institution. Four per cent may not sound as alluring as
400 per cent but, as a rule, it is a great deal safer investment in the long run.

iI
1

I

NOT A SAVER BUT A MISER.
flThe doctrine of saving and of being thrifty has been preached so long that there is no one in this
country who would deny the merits of such a wise course in the handling of money. However, when
that course comes to the point of being miserly then the matter has gone too far the other way and
should receive nothing but condemnation from the public at large. Not long ago a man by the name
of Hewett, living in Chicago, it was discovered, had accumulated $300,000.00 by never spending any­
thing, and the courts have declared him incapable of handling his affairs. He became incapable not
because he amassed $300,000.00, but because of the way he accumulated it. He estranged his family,
went to bed with the chickens to avoid spending money for light and lived on $55 a year. Then he
got in trouble with the puzzling income tax law and now his children are to handle his beloved
savings. He was a miser, pure and simple. Being thrifty and careful increases the sum total wealth
of the world but being a miser and hoarding money never added to the happiness of the individual
or the community at large.

i
“ A CASHIER’S CHECK” For $3.00 is all th a t is required to _ _
cure the m onthly visits of th e Northwestern B anker for an entire
year. E ach issue contains from 72 to 96 pages of m ighty inter­
esting m atter pertaining to banks and banking interests in
th e territory covered by th e magazine.
“ OUR CORRESPONDENTS” E v e r y b a n k in the
N orthw est is invited to a place on this list. Send us
item s of local interest, tell us about your bank and its
growth, prospects, etc.,also any other financial news of
interest to bankers in your section. We are always
glad to hear from ou r friends.
“ SIG H T DRAFTS” We always carry a large "R e­
serve” o f good will and additional service, an d will
prom ptly honor d rafts m ade upon sam e by any bank.
This departm ent is for your special benefit. I t m ay
b e m ade o f very great benefit to your bank. D o n ot
fail to avail yourself of its privileges.
“ A CLEARING HOUSE” Our columns are a clear­
ing house for all our readers. Express your views on any


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Federal Reserve Bank of St. Louis

topic of interest to th e banking fraternity and subm it sam e for publi­
cation. You do n o t have to agree w ith us, or w ith anyone else.
W e learn things by an interchange of ideas, and people w ith whom
we disagree often prove valuable teachers. We shall be glad
to hear from you.
“ NO PROTEST’* H as ever been offered to th e sta te­
m ent th a t th e field covered by th e Northwestern Banker
is the money-producing section of th e American continent,
rich in hogs, cattle, corn, etc., and dotted w ith thou­
sands of prosperous banks, all doing a good business,
an d th e m ajority of them are readers of “ The N orth­
western.”
“ SURPLUS AND UNDIVIDED PROFITS” Increase
very rapidly w ith those banks, whose advertisem ents
appear regularly in th e columns of th is magazine.
F ull inform ation a s to rates an d our special service
will be prom ptly furnished on application. Y our
business solicited a n d appreciated. T he “Banker’.’
been tw e n ty -th re e y ears in its p re se n t field.

I

6

THE

NORTHWESTERN

BANKER

October, 1919

Standardizing Advertising Program
By Frederick W. Gehle
Mr. Gehle is manager of the Advertising and New Busi­
ness Departments of the Mechanics and Metals National
Bank of New York City and gives in this article many per­
tinent facts regarding advertising essentials.

Standardization in in­
fused to recognize the
miracles wrought in public
dustry has become the or­
der of the day. In the
opinion and the wonderful
United States we have
results achieved in this age
standardized nearly everything we produce—automo­ of advertising and hustle. So far as their advertising
biles, ships, engines, even shoes. By this standardiza­ was concerned, they had never gone beyond the “label”
tion we have obtained quantity production. We have stage of announcement, while, as for seeking new busi­
increased speed in manufacture and reduced cost, and ness, the majority merely handled leads in a haphazard
by this have become the industrial leaders of the manner, having no method of keeping in touch with
world.
prospects in a systematic way.
Time has changed this. The conservative banker no
Standardization calls to our minds visions of unity
of design, quantity of production and cheapening of longer fails to advertise and follow new business leads.
cost. But when we speak of standardizing an adver­ The trend has been incontestably away from old
tising program—and financial advertising at that—it standards, to new ones. There are banks and trust
is quite evident that this is not the type of standardiza­ companies that now spend more money in gaining
tion to which we refer. We who are charged with the publicity and new business than they distributed, ten
duty of directing financial publicity cannot look for a years ago, in the form of dividends. Their number is
standardized production of our work just for the sake increasing daily.
of quantity. For then we would become mere
It is because financial advertising is such a new
machines. We cannot seek speed of production. For science that its standardization is a matter difficult to
then our production would not be productive. We define. Five years hence both our ideas and our ideals
cannot seek unity of design. For beyond a certain will have had time to fix themselves firmly ; at present
point unity of design in financial advertising makes it we are still feeling our way, experimenting in new and
worthless. Certainly we cannot seek reduced costs. strange channels all the time, and testing new ideas as
We judge costs by the results obtained.
they come to us, discarding some, adopting others and
To define, then, just what is meant by standardizing all the time striving toward an ideal that as yet is
far beyond the range of our
an advertising program, I will
vision.
say that we mean, in effect, the
“The dividend that advertising pays is new
Although we are gradually
setting of a definite ideal be­
business. That is the object in view. New ac­
reaching a standardization of
fore us, the planning of our
counts are the game we are gunning for. So
campaigns in accordance with
ideas in financial advertising,
that a standardized advertising program must
that ideal, and the living up
the methods that are employed
be supplemented by standardized new business
methods, and here again let me say that what
to such plans. To standardize
throughout the United States
we mean by ‘standardized’ is the idea and the
an advertising program, we
still differ widely. Some ad­
ideal. There are banks and trust companies
must determine upon a defi­
vertisers
favor the indirect
that now spend more money in gaining public­
nite system of seeking busi­
method. Others favor the di­
ity and new business than they distributed, ten
ness for our institutions, and
years ago, in the form of dividends.”
rect. By the indirect method
a definite way of going
I mean the insertion of paid ad­
about our tasks. When we
vertisements in the press, and
invest in advertising we expect to receive a certain per the placing of such news items in the columns of the
cent of new business as a return on our investment. daily and weekly newspapers as may be possible. Direct
Just what per cent that will be depends upon the man­ advertising consists of the preparation and distribution
ner in which we invest.
of booklets and other literature. Indirect advertising
In a word, then, we want to standardize the idea of appeals to a larger audience. Direct advertising ap­
advertising, and the ideal as well.
peals to a smaller but more select audience.
The standardizing of the idea depends on the class
of business sought. Bank advertising, like every other
It is not necessary for me at this time to debate the
form of successful publicity, must pay dividends. It relative merits of the two forms. Each advertising
must be done intelligently and systematically. Com­ company manager, knowing his own circumstances,
mon sense thoughts and constructive plans must gov­ must determine these merits for himàelf. Or his com­
ern the advertising of every branch of the work.
petitors will determine them for him. A bank like that
The dividend that advertising pays is new business. which I have the honor to represent, which acts as city
That is the object in view. New accounts are the correspondent for many hundreds of country institu­
game we are gunning for. So that a standardized ad­ tions, obviously would gain nothing by directly adver­
vertising program must be supplemented by standard­ tising the fact in booklets distributed solely in its own
ized new business methods, and here again let me say city. At the same time, it would gain nothing by the
that what we mean by “standardized” is the idea and use ©f space in country papers as a means to advertise
the ideal.
facilities, let us say, for local tradesmenls accounts.
In New York city half a dozen years ago only a few Were I in my capacity as manager of advertising and
banks maintained regularly organized Advertising and new business to think otherwise, the success of my comNew Business Departments. Conservative by habit
(Continued on page 42.)
and precedent, the men in charge of these banks re­


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

BANKER

7

Meeting N ew Business at the Train
By H. B. Grimm
Mr. Grimm is director of the department of New Busi­
Guardian Trust & Sav­
Five years ago the St.
ness in the St. Joseph Valley Bank, Elkhart, Iridiana, and in
ings of Cleveland and
Joseph Valley Bank ab­
this snappy article suggests many practical methods of se­
other institutions. It took
sorbed the First State
curing new business for the country bank.
about four months to com­
Bank, control of both
banks having been obtained by John I. Liver, the pres­ plete this work. Our central file shows every depart­
ent cashier and vice-president, a Wisconsin and Chi­ ment of the bank in which a customer does business,
cago product. And gentlemen, without holding a mu­ whether a checking account is a joint one, etc. This
tual admiration party, it will do you all good to meet was made up by the simple process of starting with
Mr. Liver for I personally consider that he is about the largest department, the savings department, and
four cat-hops ahead of us when it comes to progres­ making out a 4x6 card for each customer, showing the
name, address and account number. Then we took up
siveness in banking and bank advertising.
Mr. Liver was using liberal newspaper space and commercial or checking accounts and where there was
street car cards. The usual spasmodic attempts were no previous card for each individual, we made out one
made at sending out direct advertising, but as usual, showing that party to have a checking account. The
after much procrastination in making up a mailing list, same process followed through our certificate of de­
it would lie around and by the time it was called into posit and safe deposit departments. At that time we
had about 4500 savings accounts, 2500 checking ac­
use again, it would be out of date.
Mr. Liver was also using several outside services counts, 1800 certificate accounts and 600 safe deposit
which furnished newspaper copy, booklets, etc., but customers—a total of 9400 accounts in a town of 25,000
had gotten to a point where in connection with his people. We now have over 11,000 accounts, or almost
other duties, to look after all the details of his adver­ three accounts for every home. Of course, many of our
tising occupied too much of his time, with the result, customers live as far as 30 miles away.
Each day, every department hands to my statistical
that as a whole the results were not all they should
have been, considering the money and time involved. department, records of new and closed accounts, etc.,
He asked me what he could do to remedy the situa­ of the day before. First a daily report of this previous
day’s business is made out,
tion. I told him I thought
showing for example that
the time had come when he
John Smith closed his check­
should install a new business
“ Each day, every department hands to my
ing account of $150.00. Now
statistical department records of new
and
department and employ some­
closed accounts, etc., of the day before. First a
the teller diplomatically ascer­
one to give his entire time to
daily report of the previous day’s business is
tained that John Smith was
handling the publicity and
made out, showing for example that John
leaving
the city. Then we
producing new business. All
Smith closed his checking account of $150.
find Mary Jones has closed
The teller diplomatically ascertained that
things considered, I felt I was
John is leaving the city. Then we find (that
her savings account of $800.00
giving the proper prescrip­
Mary Jones closed her savings account of $800.
and the savings^ teller ascer­
tion. The bank had a capital
The teller ascertained that she was to purchase
tained she was to purchase a
then of $100,000.00, now
a home. Result, this is a tip for the insurance
home. Result, this is a tip for
department to sell Mary some insurance on
$150,000.00 and its deposits
her new home.”
the insurance department to
were about 2% millions. Be­
sell Mary some insurance on
sides the bank had a very
her new home.
strong earning power, was
Then maybe we find some good mercantile account
paying 20% dividends, and could well afford a reason­
has been drawn out, for no reason known to anyone in
able expenditure for advertising.
Our expenditures the past year total around $12,000 the bank. That is where I am supposed to put on my
—our gain in deposits has been about 33% or over one hat, get in the car the bank bought me to run around
in, and go see just why we lost that business and if
million dollars.
And right here, I want to make a lot of you envious. possible try to bring it back now, or later on. ,
After this daily report is made out, one copy coming
You know how often it is that after working out the
details of a good plan, etc., you have difficulty in sell­ to me and one to the vice-president in charge of the
ing your idea to the directing officers and they in turn general organization, letters are sent to every new and
to the directors. In my case, I go to Mr. Liver with a every closed account. Also, the central file and Adproposition, say that it will cost approximately so dressograp'h systems are corrected and brought down
much and is expected to produce such and such results. to date. Usually, by 11 o’clock every day, the central
Right off the bat he says YES or NO. And that ends ■file is up to the minute, including the previous day’s
business.
it, temporarily at least.
Besides being a big help to the oublicity and new
Cramped for space, I took over as my office one of
those tastefully furnished “boudoirs” where lady clients business department, this central file is a big help to
are induced by all modern conveniences except mani­ the whole organization, especially the tellers and book­
keepers, who use it as a court of last resort when there
cures and shower baths to become depositors.
Now to proceed. The first thing I did was to estab­ is any temporary angle as to the number of a savings
lish a central or master file, patterned along the lines account or certificate, when a ledger card gets mis­
of similar files in operation at the Guaranty Trust of placed, etc. Suppose a man comes in for a loan. The
(Continued on page 70.)
New York, the Mercantile Trust of St. Louis, the


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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

BANKER

October, 1919

Millions of N ew U. S. Investors
By John M ilton M cM illin
Mr. McMillin is assistant manager of the Bond Depart­
Everything that we do
portance to that of raising
ment of Henry L. Doherty & Co., and gives in this interest­
which will encourage more
the necessary capital for
ing article some of the possibilities for new business among
new people to become di­
the program of physical
the millions who have been educated by the war.
rect participants in the
improvements.
activities of corporations through ownership of stocks
There is no thesis nor text book nor any other means
or bonds will very likely hasten the day to which we of explaining corporate business to the uninitiated or
may look forward when a more unbiased point of view thoughtless, which is in any way comparable with the
will govern the public discussions of corporation af­ lessons which will discover themselves to the man who
fairs.
is a stockholder. The reason is quite simple. None
The wage earner cannot easily see that he is directly of the questions regarding'the capitalization of an ex­
interested in the welfare of the railroads and the public pected future, or the justice of earnings of large
utility companies.
While he fully recognizes the amounts in comparison to the bare dollars invested in
diminished purchasing power of his own dollar, he too physical property, ever arise in the mind of a man re­
often takes a wholly cynical attitude regarding the specting his personal business. His coldness of heart
problem of a street railway company whose increas­ in these matters is manifest only in respect to the other
ing costs of operation must be paid with nickels that man’s business, particularly when these principles oper­
will buy no more for the corporation than for himself. ate through a corporation owned by absentees.
He understands the facts well enough, but why should
We have had a considerable experience in designing
he worry about the matter when he is not financially methods to encourage the distribution of securities to
interested in the company and when he knows no one people of moderate means and have for years included
else who is, except the officers of the corporation who in our selling plans a scheme of compensation to invest­
he surmises are the paid hirelings merely of some ab­ ment dealers which enables them profitably to seek
sentee owner in the far away land of the wealthy.
small as well as large investors in our securities. Lately
A farmer readily recognizes the effect upon land we have more intensified our efforts to increase the
values of the increasing prices of food; but he does number of stockholders in our companies in the com­
not so cheerfully acknowledge the propriety of similar munities in which we do business.
promoters’ profits or reward for vision and foresight
An interesting piece of successful advertising which
in railroad operations. He
was employed in one of our
grants that these principles ex­
campaigns to persuade public
“We have observed that there are a great
tend to the stock he may own
utility customers to become
many people who gladly listen to a discussion
in a local bank. He might
security holders in the busi­
of investments and who regard the proposition
agree they were equally true
as an opportunity to themselves to learn how
ness, was the following letter
to solve the universal problem of getting ahead
in regard to railroad securities,
on the stationery of The Den­
—call
it
thrift
if
you
prefer
the
word—which
except for the fact that so far
ver Gas and Electric Light
exists in a greater degree than one might be­
as he knows these bloated
Company, which was dis­
lieve until he had examined the facts at first
hand.”
bondholders live back east
tributed in sealed and address­
somewhere raising the chil­
ed envelopes to every name on
dren of the idle rich.
the books:
No shopkeeper would think of offering his store for
A PERSONAL MESSAGE
sale on the basis of its inventory and without considera­
To
Every
Customer of Our Service.
tion of the cost to him in time, money and genius in
You are invited to become financially interested in
creating the enterprise; but unless he is a public utility
stockholder, it is not easy to keep his point of view in this company.
The gas and electric business is remarkably stable.
the same place when discussing the so-called intangible
values of an electric light or street railway company. The earnings of this company are but little diminished
Whatever valuation he may see fit to place upon the go­ by business depressions, nor much inflated in periods
ing concern value of his own business, too readily be­ of unusual prosperity. It is a business that keeps a
comes over capitalization, watered stock and high very even course throughout all conditions. It there­
fulfills exactly the requirements for permanent
finance when the same idea is put into effect by a cor­ fore
and
safe
investment.
poration, none of whose security holders he ever saw or
This
company
is now bringing out an issue of
heard of.
$1,500,000, of preferred stock, which will be sold to
Many of the gas and electric companies are now fully retire certain of the company’s bonds, and to provide
alive to the value of security holders among the custom­ money required for gas and electric improvements
ers of their service. The organization of which I am a necessitated by the over-growing city of Denver.
member has on more than one occasion put aside an op­
Instead of allowing the sale of all this stock to
portunity to sell securities involving very considerable Eastern bankers (who have offered to buy the entire
sums to well-to-do investors, able and willing to pay issue) I have decided to take a hand in the business
promptly in cash, choosing instead the more tedious myself to see that the company’s customers may, if
process of selling, the issue in question, a few shares at a they want to, become partners in the business.
time, on extended terms of payment to a large number
The stock is a well protected, safe and sane invest­
of people of moderate means. Their aggregate good ment, which will pay you over 6% per year in monthly
will was deemed to be a consideration of equal im­
(Continued on page 41.)


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

BANKER

9

Future Valuation of Farm Lands
By John A. Cavanagh
This very interesting article sketches the wonderful rise
opinion it is not going to
At a recent meeting of
in farm land values and predicts that they will not decline
fall
much, if at all. We are
bankers and real estate
within the next decade. Mr. Cavanagh is vice president of
on a permanently higher
men, in the state in which
the Des Moines National Bank.
price level and the sooner
I have the honor to live,
attention was called to the fact that only twenty years the business men of the country take this view and
ago a similar meeting had been called for the express adjust themselves to it the sooner they will save them­
purpose of determining the best action to be taken selves and the nation from the misfortune which will
should Iowa farm land go to $37.50 an acre, as then come if we persist in our present false hope. * * * To
seemed possible. Today much of that selfsame land talk reverently of 1913-14 prices is to speak a dead
is selling for ten times the price which occasioned language today. Business men are going to find out
that the clever man is not the man who waits but the
alarm then.
Many of us—and not alone the patriarchs either— one who finds out the new price facts and acts accord­
can recall how startled we were when farm land first ingly.”
Have we the perspicacity to choose between such
touched $50 an acre. With grave faces, we met and
took counsel together concerning the bugaboo of price eminent, yet such varying, authorities? Have we the
inflation, as it then appeared to us. Last summer effrontery to say that neither is exactly correct? Will
thousands of acres constituting hundreds of farms in you pardon me if I have the temerity to set forth some
the middle west were sold at prices ranging from $250 very positive convictions of my own, which find basis
to $600 an acre. Such activity in the farm land market on the law and gospel as laid down by both Mr. Babson
had never been known before. Conditions reached and Prof. Fisher, but differ from and take exception to
such a stage that the United States Department of each?
I am .convinced of certain things which I might best
Agriculture sent out expert investigators to see if the
transactions were legitimate and logical, or if they set forth in seriation discussing them in the order in
testified to an outbreak of the speculation mania in a which they are placed.
First: The price of farm products will decline with­
new form and a new place. I am advised by the Col­
lege of Agriculture in my state that within six months in the next few years.
Second: The price of farm land will not decline
last summer farm land in seventy of Iowa’s ninetywithin the next decade.
nine counties advanced in
Third: Farming will Con­
price sixty per cent. In more
“The price of farm products will decline with­
tinue to provide a reasonable
than fifty of the counties land
in the next few years. The price of farm land
return on both capital and
sold for $300 an acre and
will not decline within the next decade. Farm­
labor invested.
more. The advance for the
ing will continue to provide a reasonable re­
Fourth: Farming will be
six-months’s period averaged
turn on both capital and labor invested. Farm­
ing will be conducted more scientifically than
conducted more scientifically
about $100 an acre. This was
ever before, a new type of intensive farmer will
than ever before, a new type
above the average advance
result from the decrease in the value of farm
of intensive farmer will result
and the average price for the
products and the increase in the value of farm
from the decrease in the value
lation, but there are few states
land.”
of farm products and the in­
in which the present price of
crease in the value of farm
land does not give occasion
for investigation of the most serious and impartial land.
Let us consider, first, the price of farm products.
nature.
There is a proverb to the effect that “the best reply
There are in the United States today two schools of
thought on the price subject. One follows the teach­ to a prophecy is another forecast.” I reserve the right
ings of Prof. Irving Fisher, of Yale University. The to reply to myself by forecasting again, as occasion
other accepts as gospel the mandates of Roger W. warrants. For the present, however, I am content with
Babson. Let us see to what extent these two apostles the prediction that we shall see little, if any, decline in
the price of farm products for the next two years at
of economics differ on farm land prices.
least. Eventually, however, the price of farm products
Under date of September 5th the Babson Statistical will come down, before the cost of production comes
Organization made this report to me: “We feel that down. The United States Department -of Agriculture
farm values are tremendously inflated; that under nor­ reports that the farmer is receiving three times as
mal conditions such as prevailed in 1912 and 1913, farm much for his crops, all averaged together, as he re­
lands purchased at present costs would not begin to ceived during the 43-year period from 1866 to 1908.
pay an adequate return on the investment * * * We Is there any reason to believe this great increase will
expect that by 1921 crop prices are going to be sub­ continue indefinitely? I think not.
stantially lower than they are now and that farm prop­
Many abnormal factors are contributing to the pres­
erty bought at present prices may not prove a profit­ ent high prices of farm products. We must remember
able investment.”
that the abnormal is always impermanent. One by one
On the other hand, in an address delivered before the these abnormal factors will disappear and, with them,
conference of governors and mayors at the White a certain share of the inflated values which they occa­
House March 3rd to 5th, Prof. Fisher said: “The funda­ sioned.
It seems pretty well established that an acrq of
mental question confronting business men is whether
(Continued on page 23.)
the general level .of prices is going *to fall. In my


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Federal Reserve Bank of St. Louis

10

THE

NORTHWESTERN

BANKER

October, 1919

Work Is the Need of the Nation
By John Fletcher
The way out of the present economic fog is through in­
The signing- of the ar­
fogs of false doctrines re­
creased production, according to Mr. Fletcher, vice presi­
mistice found America sit­
tard
the approach of bet­
dent of the Fort Dearborn National Bank of Chicago and
ting in the golden seat of
ter days.
widely known throughout the Middle West.
prosperity. Our farthestLet us look into some of
sighted leaders painted bright pictures of the future of these fogs that have so delayed the return of this coun­
this country. We were to take world leadership in try to a peace-time basis, and so far prevented it from
every line, for all the other countries that might have taking the fullest advantage of our golden opportun­
been our rivals were prostrated by the terrible sacrifices ity, an opportunity that in all history no other nation
they had had to make during the long struggle. We has had. Work is the only magician that will give a
had escaped most of these, or at least suffered compar­ modicum of the national prosperity to each of us.
atively little, whereas for the first thirty months of the
First, certain lines of manufacturing experienced un­
catastrophe we had advanced from a debtor to a creditor dreamed of prosperity. Labor naturally benefited
nation.
next. The country quickly put itself on a war-time
But here we are nearly a year after the close of hos­ basis, and nearly every producer began to benefit enor­
tilities scrapping among ourselves, divided into several mously. Labor directly followed. Immediately the
groups, some seeking what the others have and others cost of living began to soar. In many lines wages did
doing their best to defend themselves from the or­ not keep.pace with the upward trend of prices. But
ganized attacks .made upon them. The theorists have then there were many lines of industry completely
been playing fast and loose while practicalists have lost ruined by the war. As a matter of fact, it was usual­
the. ear of the public.
ly those industries that struggled along on a precari­
With the end of hostilities there started the world ous financial foundation that profited most by the war,
war of theories, ideas, ideals, idosyncrasies. The com­ while many standard institutions were almost put out
posite war mind of the world in breaking up and getting of business
ready for peace is like the breaking up of a hard winter
However, the net total was a great gain in the
getting ready for spring. In the last case there is wealth of the country. The great majority of the
neither winter nor spring; in the former, neither war people had more money than ever before. And not
nor peace. At this stage the fogs of the weather or the
(Continued on page 57.)

Fooling the Good American Farmer
By C. S. Hunter
This “come-back" by Mr. Hunter carries further the dis­
George Van E v e r a,
offerings that came in this
cussion between the Federal Farm Loan Bank interests on
farm loan agent for the
morning’s
mail:
the one hand and the Farm Mortgage Bankers on the
Union Central Life Insur­
S h e r b u r n e County,
other hand—a discussion that* is interesting and timely.
ance Company of Cincin­
Minn., Road Bonds “Ex­
nati, Ohio, takes serious exception to the Federal Farm empt from Federal Income Tax. Tax exempt in Min­
Loan and the Joint Stock Land Bank plan of long nesota.”
time loans to farmers. Mr. Van Evera has built up a
Huron, South Dakota, City Hall 5’s “Exempt from
large and lucrative business making short time loans Federal Income Tax.”
to farmers and naturally does not contemplate the
Houston County, Minn., Ditch Bonds “Exempt from
rapid growth-of the Federal Farm Loan and the Joint Federal Income Tax.”
Stock Land Banks with any marked degree of enthus­
Ronan, Missoula County, Montana, School District
iasm. The Farm Mortgage Bankers Association of No. 28 bonds “Exempt from Federal Income Tax.”
America, of which he is a member, is even less en­
So the list could be multiplied indefinitely with the
thusiastic than Tie is.
constant repetition of “Exempt from Federal Income
He states in his recent article in The Northwestern Tax.”
Banker that “the Farm Mortgage Bankers Association
There are now in the hands of investors tax free
is endeavoring to convince the people of the United securities approximately as follows: $7,000,000,000 of
States that favoritism is not a desirable thing and is municipal, county and state bonds; $3,000,000,000 of
eminently unfair. The only objection we have to the mutual savings bank securities; $1,700,000,000 of
Federal Farm Loan Bank is the tax exempt feature building and loan securities, $100,000,000 of Federal
of its bonds.”
Reserve Bank stock, $300,000,000 of farm land bonds.
He gives the impression that this tax exempt feature A grand total of $12,100,000,000 of tax free securities
is an innovation by the government—a venturing into not including the billions of Liberty bonds.
a new and untried field. Hardly a day passes but that
If “tax exempt bonds” are a menace to the country
there comes to my desk offerings from bond houses, of why doesn’t the Farm Mortgage Bankers Association
securities with “Exempt from all Federal Taxes” prom­ of America train their guns against the long eninently printed across the circular. Here are some
(Continued on page 90.)


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

BANKER

TRAYLOR OFFERS CUP.

The Traylor Cup, presented by Melvin A. Traylor,
president of the First Trust and Savings Bank, Chi­
cago, for the best financial advertising entered at the
New Orleans convention of the Financial Advertisers’
Association held in connection with the Associated
Advertising Clubs of the World, September 21-25, was
won by the Irving National Bank, New York, H. A.
Marsland, Publicity Manager.
“When the exhibit of the Financial Advertisers’
Association was brought to my attention,” said Mr.
Traylor, “with information regarding the scope and
character of the displays at the conventions held in
Philadelphia, St. Louis and San Francisco during the

THE TRAYLOR CUP.

GUARANTY

B ank cred its fa e ih
hating the movement
o f commodities from
producer to consumer
are sound. 3heieare
no loans more liquid
than loans seeuied
by b eef eattle being
prepared for market.

The

last three years, it occurred to me that a cup to become
the permanent possession of the winner would supple­
ment the certificate of award by the association.”

Northwestern Banker

“The tremendous volume of publicity which char­
acterized the five Liberty Loan campaigns must have
been some factor in their success. Just how much can­
not be determined ; but between advertising and sales
organizations the number of investors in this country
was increased and multiplied almost beyond belief.
Such new investors have been considered prey by getrich-quick promoters and are certainly entitled to
every protection that law and publicity can afford.
If through the Financial Advertisers’ Association and
other organizations whose aim is to increase legitimate
advertising and prevent the publication of that which
is false or misleading those who have either money or
investments can be protected, the end is certainly to
be desired.”

The oldest financial m agazine west
<T the M ississippi river, yet gaining
in prestige and usefulness every
year.
Increased organization enables us to
assure better service to readers in
1919--no banker can afford to be
w ithout “ the necessary trade jour­
n a l.” $3.00 a year.


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Federal Reserve Bank of St. Louis

D es M oines

11

THE

12

NORTHWESTERN

BANKER

October, 1919

sM
i"!NinittaiM«aaaiaiaiaiiuaiiiaiaiiaiiiiiiiiaaiiiaiiiaiaiiiniaiaiiaiiiiiiiiaiaiiiaaiiiiiaiiiiaiiaiatiiiaiiiiiiiiii.aaiiiiiiiaiiiiiaiiiiiiaaiiiiiiüiiiiiiiiiaiiiiiaiiitiiiiiiiiiiiiiiiiiiiiiiaiiiiaiiiiiiiiiiiii«iiiiiiiiiiaaaiiiiiiiiiiiiiiaiiiiiiiiiiiiiiiiiitiiiiiiiaiiiiiiiiiaiiiiiiiiiiaiiiiiiiiiaiiiiiiiiiiiiiiiiiiaiiiiiiiiiitiaiiiiaiiaiiiiaiaiaiiiiiaiiiiaiiiiiiiiiaiiiiiiaiaaiiiaiiaaaaaiaaiaaiiaaaaiaaiaiaaaiiiauiiaia s

II

P erso n a l P a ra g ra p h s

II
iI

aiiiiiiiiaaiiiiiaiiiiiiiiaiiaaiiiiiiiiiitiiaiiiiiaiiiaiaiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiitiiiiiaiiiiiiiaiiiitiaaiiaiiiiiiiniiaiaiiaiiiiiitiaiiiiiiiiiiiiiiiaiiaaiiiiiiiaiiiiiiiaiiiiaiiiiaiaiiaiiiaaiiiiiiiiiiiiiiiiiiaitiiiiiiiiaiiiiiiiiiaiiiiaiiiiiiiaiiiiiiiiiiiiiiiiiiaiiiiiiiiaiiiiiiiiiaiiiiiiiiiiiiiitaiiiiaiiiaiiaaiii«iiiiiiiiiiiiiiaaiuiaiiiiaiiiiiiiiMaiiiiiiiiiiiaiiiiiaiiiiaiiiiiiiiaaiiaaiaaiiiiiiaiiiiaiiaiaiiiiT *
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iffuf

George P. Kennedy, president of the Italian Dis­
count and Trust Company, 399 Broadway, New York
City, points with pride to the rapid growth of the in­
stitution as shown by the statement of September 12.
The company has deposits of $19,631,145.00, an in­
crease during the past three months of more than
$9,000,000.00. The company has been in business only
ten months.
$----- 7-------- $-------------- $

Cables from Paris recently stated that American
bankers are lending to French Woolen Manufacturers,
$30,000,000.00, for reconstruction purposes.
$ 7 7
' $
Uncleared deposits in British banks totalling $500,000,000 are to be taken over by the British Govern­
ment to pay public expenses.
$---------;-----$— ;--------- $
Paul M. Warburg, in speaking before the National
Association of Credit Men in Detroit, advocated a
National Budget system as the only means of bringing
about economy in government operations.
$------------ - $ ---------------■$
The Northern Trust Company, Chicago, has issued
a very handsome booklet entitled “Three Decades of
Banking,” which covers the time from the organization
of the Northern Trust Company, on August 12, 1889,

In
N e w York
The call of the nation’s business today is for
teamwork. Out of town banks will obtain
hearty cooperation by using the service of this
bank in New York.
P h in e a s , C. L o u n sb u ry , C h a irm a n
H e r m a n D. K o u n tze, P re s id e n t
E d w a rd K. C h e rrill, V ic e P re s id e n t
G ilb e rt H . Jo h n so n , V ic e P re s id e n t
K im b a ll C. A tw ood, V ice P re s id e n t
C h a rle s P . Ju n o d , V ice P re s id e n t
P r a n k E . A n d ru ss, C a sh ier
Jo h n P . L a ird , A s s is ta n t C a sh ier
J o h n H . B re n n e n , A s s is ta n t C a sh ier
J o h n H . T ro w b rid g e, A s s is ta n t C ashier

National Bank
Broadway-Opposite CityHall


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Federal Reserve Bank of St. Louis

to the present. The booklet concludes: “Great outward
changes have come in the business and social life of
the nation; business has expanded tremendously; is
reaching out to the ends of the earth; new banking
facilities and new safe-guards have succeeded the old;
but as long as men and nations trade with others,
confidence must be the basis of their relations and
that, in turn, rests upon a foundation of conservatism.”
$----- :------- $----------- -$
Roger W. Babson says : “Prosperity ultimately de­
pends upon the consumer. If there is not a market
for goods they will not be produced. By creating a
demand for manufactured products, advertising starts
business as rapidly as possible.”
$-------------- $--------- ---- $
Sanford T. Bennett has been appointed assistant sec­
retary of the Guaranty Trust Company. He is in the
bond department of the Fifth Avenue office. Mr. Ben­
nett joined the company in 1910 and has been continu­
ously in its service except from May, 1918, to March,
1919, during which period he was overseas with the
American Army.
$-------------- $-------------- $
The Guaranty Trust Company, of New York, notes
a growing industrial stability in Europe. Re-estab­
lished trade with Hungary provides an immediate mar-

WE DON’T
“FORGET” ITEMS
Drafts are promptly presented and are not held
without your permission. Daily watched and fol­
lowed up both ways—to the drawee and to you.
Our bid for your business comes from determi­
nation and ability to handle it most acceptably in
its every aspect.
We don’t “forget” items but are constantly on
the alert giving them our best and most efficient
attention.
Let us show you wherein our service DIFFERS.

Union & Planters Bank
Trust Company

&

MEMPHIS, TENN.
Organized 1869
Resources over $30,000,000
Member of Federal Reserve System

THE

October, 1919

NORTHWESTERN

13

BANKER

ket for such manufactured products as can be financed.
Shipments of gold from New York to various coun­
tries in which exchange had moved against the United
States have served to restore the par relationship and
so have made it easier for the United States to buy
and sell in those countries. Trade with the Far East
is in a decidedly healthy state. Both China and Japan
are buying in large volume
$---------------■$—----------- $
The September Forecast, issued by the Iowa Na­
tional Bank, of Des Moines, savs: “While strikes are
numerous and threats of strikes are nearly every­
where labor conditions are probably not worse than
they were a month ago and, during the month, many
labor disputes have been settled and others are in a fair
way to adjustment. The immediate future will be a
period of give and take and both employer and em­
ployee must meet each other in a spirit of fairness and
conciliation. Some demands of labor must be granted
and some other demands cannot be granted. The pub­
lic is beginning to realize that it has a right to be heard
and both employer and employee would do well to lis­
ten to public oninion.”
$-----— -----$---------------$
R. Capps, cashier of the Iowa National Bank, and
Tohn Hogan, cashier of the Des Moines Nation'al Bank,
were delegates from the Des Moines Clearing House
to the Clearing House Section of the American Bank­
ers annual convention at St. Louis.
$— ------------ $------------------$

A. C. Krakow, for the past five years connected with
the Internal Revenue Service, resigned on September
1st to take charge of the Federal Tax Department of
Billings, Prouty & Tompkins, certified public account­
ants, of Des Moines. Mr. Krakow’s experience with
the treasury department as an investigating agent of
income tax returns submitted by all classes of business
concerns and his practical knowledge of the require­
ments of the various tax laws will enable him to render
valuable service to clients of the firm as the importance
of correct preparation of returns for the revenue de­
partment is being generallyrecognized.
$----------------$------------- -$
Jerome Thralls has been elected chairman of the Ac­
ceptance Committee of the National Bank section of
the American Bankers Association.

Developed through the growth and exper­
ience of more than half a century

T he First National
Bank of Chicago
James B. Forgan, Chairman of the Board
Frank O. Wetmore, President

and the

First T rust and
Savings Bank
James B. Forgan, Chairman of the Board
. Melvin A. Traylor, President

offer a com plete financial service,
organized and m a i n t a i n e d at a
marked degree of efficiency. Calls
and correspondence are invited rela­
tive to the application of this service
to local, national and international
requirements.
Combined Resources over $300,000,000

$--------------— $---------------- $

John W. O’Learyhas been elected an active vice
president of tfie Chicago Trust Company. Mr. O’Leary
is known to the business men of the country for his

J O S E P H W A Y N E , J R ., P r e s id e n t
E V A N R A N D O L P H , V ic e P r e s id e n t
A . W . P I C K P O R D , V ic e P r e s id e n t
C H A R L E S M. A S H T O N , C a s h ie r

A L F R E D B A R R A T T , A s s t . C a s h ie r
D A V I D J. M Y E R S , A s s t . C a s h ie r
W A L T E R P . F R E N C H , A s s t . C a s h ie r

PHILADELPHIA, PA.
Capital, $2,000,000

Bank

Surplus and Profits, $6,066,000
Deposits, $70,000,000
ACCOUNTS OF BANKS AND BANKERS SOLICITED
“To Handle Your Business Satisfactorily, You Need a Philadelphia Account”


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Federal Reserve Bank of St. Louis

14

THE

NORTHWESTERN

CORN EXCHANGE
NATIONAL BANK
OF CHICAGO
C a p i t a l .......................... $ 3,000,000
S u r p l u s ...........................
7,000,000
U n d iv id e d P r o fits .
1,821,600.40
D e p o sits
. . . .
107,289,692.55

O F F IC E R S
E R N E S T A . II A M IL L , P r e s id e n t
C H A R L E S L . H U T C H IN S O N , V ic e P r e s id e n t
D . A . M O U L T O N , V ic e P r e s id e n t
O W E N T . R E E V E S , J R ., V ic e P r e s id e n t
J. E D W A R D M A A S S , V ic e P r e s id e n t
N O R M A N J. F O R D , V ic e P r e s id e n t
J A M E S G. W A K E F I E L D , C a s h ie r
L E W I S E . G A R Y , A s s is t a n t C a s h ie r
E D W A R D F . S C H O E N E C K , A s s is t a n t C a s h ie r
J A M E S A . W A L K E R , A s s is t a n t C a s h ie r
C H A R L E S N O V A K , A s s is t a n t C a s h ie r
J O S E P H C . R O V E N S K Y , A s s is t a n t C a s h ie r
D IR E C T O R S
W ATSO N F . B L A IR
C H A U N C E Y B. B O R LA N D
E D W A R D B. B U T L E R
B E N J A M IN C A R P E N T E R
C L Y D E M. C A R R
E R N E S T A . H A M IL L
C H A R L E S H. H U L B U R D
C H A R L E S L . H U T C H IN S O N
M A R T IN A . R Y E R S O N
J. H A R R Y S E L Z
E D W A R D A. SH ED D
R O B E R T J. T H O R N E
C H A R L E S H. W A C K E R


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Federal Reserve Bank of St. Louis

BANKER

October, 1919

active part in commercial, industrial and public affairs.
He brings to the duties of his new position a broad
experience in mercantile and manufacturing lines and
his practical knowledge will mean enlarged service to
the customers of the Chicago Trust Company.
$----- ---------- $— ---------- $
The Firestone Tire and Rubber Company has de­
clared its regular quarterly dividend on the common
capital stock of the company in the amount of $1.50 per
share, payable to stockholders of record on Septem­
ber 10th.
$-------------- $---------------$
The Executive Committee of the Guaranty Trust
Company, of New York, has appointed N. D. Putnam,
treasurer, a vice president; Hugh R. Johnston, assistant
secretary, was appointed treasurer; and Arthur B.
Hatcher, assistant treasurer, was made an assistant
vice president.
$--------------$---------------$
A sight draft accepted by the drawee payable at a
future date, under a ruling of the Federal Reserve
Board, is a qualified acceptance which the holder may
refuse to take, but if such an acceptance is taken by the
holder, the drawer and endorsers are released unless
they have either expressly or impliedly authorized the
holder to take a qualified acceptance or unless they
subsequently assent thereto.
.$------------ $------------- $
The Commissioner of Internal Revenue has ruled
that promissory notes given by one bank to another
bank secured by War Finance Corporation bonds are
subject to stamp tax, but that promissory notes se­
cured by certificates of indebtedness issued by the Di­
rector General of Railroads are not subject to the stamp
tax.
$--------------- $-------------- $
Financial experts attached to the American Peace
Commission, replying to suggestions that the United
States should convert its loans to the Allies into gifts,
point out that while Italy and France increased their
taxes during the war only six per cent, the increase in
the United States was two thousand per cent. The in­
crease in the United Kingdom was one thousand one
hundred per cent.
$--------------- $-------------- $
Federal Land Bank bonds to the amount of $54,000,000 are being put on the market by the Farm Loan
Board. They are sold at 100^4 direct to investors
through the twelve Federal Land Banks-and through
investment banking houses.
$--------------- $------- -------$
Irving J. Greene, has been appointed assistant secre­
tary of the Guaranty Trust Company at its Brussels
office. Mr. Greene, who is twenty-six years old, en­
tered the service of the company March 22, 191.6, and
was successively in the securities, the trust and the
coupon departments. He was sent to the Paris office
in September, 1916, and in August of this year he was
transferred to the Brussels office.
$ - ------------$--------------- $
The First National Bank, of Boston, at a recent
meeting of their Board of Directors, elected as assist­
ant cashiers C. SinclairWeeks and A. Stanley North.
$-------------- $--------------- $
Simon Casady, chairman of the Board of Directors
of the Central State Bank, of Des Moines, purchased a
very beautiful bronze tablet on which he has the names
of all the members of the bank who were in the service

THE

October, 1919

NORTHWESTERN

BANNER

The CONTIN ENTAL
COMMERCIAL

BANKS
CHICAGO

Practical business men of vision control and manage these
banks—men who know the banking requirements of mod"
ern business and who daily are applying that knowledge
constructively in rendering the best banking service.
Cooperation with their customers is regarded as a par"
amount duty by the officers and staff.
RESOURCES MORE T H A N $450,000,000

C o n tin e n ta l an d C om m ercial N ational Bank o f Chicago
C o n tin e n ta l and C om m ercial T r u s t and Savings Bank
208 SOUTH LA SALLE STREET
CHICAGO, U. S. A.


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Federal Reserve Bank of St. Louis

IS

To help you give your clients
a broader service
J J E A D S of the bond depart­
ments of banks, the country
over, are making use of our
national bond service.
As a source of prompt, accu­
rate information on markets,
quotations, and new security
issues, as a strong and friendly
advisor on conservative invest­
ments, National City Company
service enables the officers of
banks to meet the investment

needs of their clients with re­
sourcefulness and authority.
Our com plete service is now avail­
able th ro u g h correspondent offices
located in more than 50 of the leading
in v estm en t centres. Fast work is
facilitated by more than 10,000 miles
of private wires.
W e shall be glad to arrange a per­
sonal call upon you by one of our
representatives upon request.
Our M onthly Offering Sheet w ill
be sent to you on request for FK115.

The National City Company
National City Bank Building

New York

Correspondent Offices in 50 cities

B ONDS


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Federal Reserve Bank of St. Louis

SHORT TERM NOTES

ACCEP T ANCE S

THE

October, 1919

NORTHWESTERN

17

BANNER

COTTON-WOOL-GRAIN
are three com m odities in which New England is largely interested. Business re­
sulting from the handling of these com m odities is solicited.

T he F irst N a tio n a l B a n k of B o sto n
S u r p lu s a n d P r o fits, $21,000,000
D e p o s its , $179,000,000

C ap ital, $7,500,000

of Uncle Sam. This is the first tablet of the kind to be
erected in Des Moines and was highly appreciated by
many of the employes, who have returned to the bank
since being discharged.
Irwin G. Jennings, assistant secretary of the Metro­
politan Trust Company, of New York for the last
three years, has resigned to become business director
of the Glass Containers Association of America. This
association was recently organized by prominent manu­
facturers of glass and allied lines throughout the United
States and Canada. The selection of Mr. Jennings to
this important post is the result of his ability as an or­
ganizer and his broad business experience. He served
as judge and later as United States Commissioner in
Ohio, then as special milk investigator in New York
City for the Bureau of Municipal Research, as an offi-

The Bank th at KNOWS YOU;
KNOWS YOUR PEOPLE;
KNOWS YOUR BANK,
from actual personal experience and acquaintance^

The Bank where TEAMWORK,
CO-OPERATION, and
MUTUAL INTEREST
are naturally found.
(Your business is invited.)
l i / i TT"\\X7'I? C r”T NATIONAL BANK
& TRUST COMPANY

M I D W LvO 1

KANSAS CITY

D IR E C T O R S

O F F IC E R S

S. T. KIDDOO, President
G. F. EMERY. Vice-Pres.
J. U. DRISCOLL,
Assistant to President
D R. KENDALL, Cashier
A. W. AXTELL, A. Cash.
L. L. HOBBS, A sst Cash.
H. E. HERRIOK, A. Cash.

JAMES H. ASHBY
SAMUEL COZZENS
S. T. KIDDOO
G. F. EMERY
ARTHUR G. LEONARD
J. A. SPOOR
H. E. PORONTO
EDWARD F. SW IFT
F. EDSON W HITE
M. A. TRAYLOR ■
THOMAS E. WILSON

Established

$25,000,000.00

Resources Over

B a n k s in th e Corn B elt
called upon to finance cattle feeding operations
will find it advantageous to establish
connections with

The Live Stock Exchange National Bank
of Chicago

Correspondence Invited


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Federal Reserve Bank of St. Louis

18

THE

NORTHWESTERN

BANKER

October, 1919

Long experience has given us the qualifications es­
sential to a banking in stitu tion seeking to
serve out of town banks and bankers.

The Mechanics and Metals National Bank
OF TH E C IT Y O F N E W YORK
EST A BLISH ED 1810

L.

D e p o sits, S ep t. 12, 1919, $230,000,000

= D o

Not C o n t r a c t =

For a Check Canceling Perforator Until You Have
Investigated the

(Improved)

A M E R IC A N
The new improved AMERICAN is the only check
canceling machine made in which each and every
part is interchangeable.
The AMERICAN is the only machine manufactured
employing our patented STEEL DIE-WHEELS;
The new improved AMERICAN is guaranteed to
cut the same quantity of papers with 33^% less
power than any other machine;
The AMERICAN cuts a greater quantity of papers
than any other machine marketed;
The AMERICAN is SPEEDIER, EASIER, STRONG­
ER, BETTER, LONGER-LIVED, CHEAPER.
Investigate today—let us prove our statements.

Am erican Perforator Company
Largest Exclusive Perforating Machine Manufacturers in the World

M a in O ffic e a n d W o r k s , 619-629 W . J a c k s o n B iv d .
CHICAGO

c.er and director of one of the largest milk companies
in the country, finally as an officer of the Metropolitan
Trust Company. Mr. Jennings is a member of the
board of trustees, Trust Company Forum, New York
chapter of the American Institute of Banking, and his
articles on business topics have attracted wide atten­
tion. He was recently awarded the degree of doctor
of philosophy by Columbia University. He will take
up his new duties at once.
$---------------$---------------$
The Liberty National Bank, of New York, has ac­
quired, through consolidation, the Scandinavian Trust
Company, founded in 1917. The Liberty expects to in­
crease it’s facilities for trade with Scandinavian and
other Northern European countries. The consolida­
tion brings the total capitalization to $5,000,(XX) and the
total deposits to ao^oximately $100,000,000.
$-------------- $-------------- $
Alexander V. Ostrum, president, Scandinavian Trust
Company, became a vice president of the Liberty Na­
tional Bank in' the recent New York consolidation.
The other officers and entire staff of the trust com­
pany were taken over by the bank.
$-------------$------------ $
Frank K. Houston, vice president of the First Na­
tional Bank in St. Louis, was general chairman of the
Golf Committee for the A. B. A- convention delegates.
Other members of the committee were: T. E. Newcomber, A. H. Burg, W. M. Chandler, H. H. Hopkins,
J. Hugh Powers and J. Shepard Smith. Bonner Miller,
president of the Missouri Golf Association, acted as
chairman of the tournament.

Fort Dearborn National Bank
CHICAGO, ILLINOIS

C A PIT A L A N D SURPLUS $4,000,000.00
W IL L IA M A. T IL D E N , P r e s i d e n t
H E N R Y R. K E N T
JO H N F L E T C H E R
G E O R G E H . W IL S O N
M A R C U S JA C O B O W S K Y >Vice P r e s i d e n t s
CHA RLES FER N A LD
E . C. T U B B S
WM. L. M cK E E
R O B T . J . M cK A Y

D EPO SITS $46,000,000.00
W M . W . L E G R O S C a s h ie r
C H A R L E S L. B O Y E
W M . E . M cLA L LE N
W M . J. F IC K I N G E R
>Ass’t C a s h ie r s
H A R R Y S. C O V IN G T O N
E D W A R D N. H E IN Z
A n d M g r. F o r e i g n Ex<
c h a n g e D e p t.

A GENERAL BANKING BUSINESS


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

BANKER

19

Out-of-Town Banks and
First National Service
Every facility has been provided which enables the First
National Bank to give its correspondent banks the very best
in banking service.
This service embraces :
—Answering Correspondence the day it is received.
—Prompt Collections and Returns.
—Full and complete access to Credit files through a
thoroughly organized Credit Department.
—Buying Commercial Paper and handling other investments
through well-equipped Bond Department.
—Acting as custodian of securities.
—Co-operating with banks in giving their commercial
account customers the broadest possible financial
accommodations.

We invite correspondence w ith Banks and Bankers who are
not at present receiving the broad service indicated above.

FIRST NATIONAL BANK
IN ST.LOUIS

Capital and Surplus $15,000,000.00

m

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Federal Reserve Bank of St. Louis

FT

THE

20

NORTHWESTERN

BANKER

October, 1919

Development of Trust Department
By Virgil M. Harris, LL. D.
Harris is Trust Officer of the National Bank of Com­
merce in St. Louis. He gives in this article many interest
ing facts regarding the development of a Trust Department
in a National bank.

The entry of national
The duties of the trust
banks into this new field
officer are multifarious. He
of service is one which
should be a lawyer, and a
should receive serious con­
versatile one, for there
sideration, and it is well at this early date for bank come before him every form of business complication
officials to realize the marked difference between the and every phase of human character, good and bad.
time-honored usages of commercial banking and the There is no problem,, legal or otherwise, which our
principles which obtain in the operation of a trust de­ complex civilization brings forth, which he may not
partment. Commercial banking, in an abstract sense, be called upon to solve. The orphan’s cry, the widow’s
is largely a question of arithmetic. Safe banking de­ weeds and the lamentations and denunciations of dis­
pends upon loans amply secured; the interest takes care appointed heirs are everyday occurrences to him. He
of itself; on the other hand, the assumption of fiduciary must exercise a broad sympathy, and yet exercise firm­
relations means the undertaking of grave responsibili­ ness in the performance of his duties. The trust officer
ties which are entirely new to national banks, and should have a capable force of assistants and clerks
which can be successfully discharged only by experts at his command ; he should receive from the executives
and trained officials who have a thorough knowledge of- cordial support and encouragment.
the intricacies incident to all fiduciary matters. Noth­
The trust department, with reference to its location
ing short of technical knowledge, coupled with years in the bank, should be to itself; the members of the
of training, will serve to avoid the pitfalls which beset officiàl and clerical force should not be separated; the
those who undertake the ad­
department should have ap­
ministration of trusts and
propriate signs designating its
“The Trust Department should not be a
kindred matters. At a recent
location, and it should be ac­
dumping place for undesirable transactions.
meeting of trust officers, the
cessible, with first-class equip­
One bad lobster, it is said, will spoil a car load.
ment.
president of one of the leading
Where it is clear that the business offered is un­
In the ordinary course of
trust companies of the United
desirable, it should be declined with that alac­
States said that not more than
affairs, it takes about five
rity and firmness with which the discount com­
mittee of the bank would decline a loan which
two per cent of commercial
years to establish a trust de­
is not properly secured."
banking gave cause for solici­
partment; that is to say, to
tude, but that he had found
put it on a fixed and paying
that seventy-five per cent of
basis. The experience may be
the business which naturally falls into a trust depart­ likened unto that of a doctor or a lawyer in establish­
ment is fraught with complications and perplexities ing a paying practice ; success does not come overnight ;
and subject at all times to litigation: and I am free to and during this period of probation, the desire to secure
say that after twenty years of experience, I heartily business should not overweigh sound judgment and
concur in his statement.
discrimination in the nature of the business received.
Considerable misapprehension has arisen as to the
The trust department should not be a dumping place
exact nature of a trust department of a national bank. for undesirable transactions. One bad lobster, it is
Many well-informed people, including lawyers, believe said, will spoil a carload. Where it is clear that the
it to be a trust company within a bank. Such is not business offered is undesirable, it should be declined
the case. It is not a separate entity; it is a part of the with what alacrity and firmness with which the dis­
bank itself, and as much so as the savings department count committee of the bank declines a loan which is
or commercial department, and while this is true, yet not properly secured.
the Federal law requires that the books and assets of
Our worldly possessions are but life holdings, and the
the trust department shall be kept separate and apart grace with which we part with them at the end of life’s
from those of the bank itself.
journey shows human character in its least disguised
D p.

C A PIT A L and
SURPLUS
$ 7 ,0 0 0,0 0 0

D EPO SITS
$50,000,000

A B ank o f
Service and Safety
Charter Member
F ed e ra l Reserve
B ank o f Chicago
Under
National, State and
Clearing House
Supervision


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Federal Reserve Bank of St. Louis

of I L L I N O I S
125 West Monroe Street
111 South LaSalle Street

{Street L e v el p n T r s r n
Entrances)

Accounts of Banks and Bankers Received
Correspondence Invited

S a v in g s A c c o u n t s
C h e c k in g A c c o u n t s
B ond D e pa r tm en t

J fF F IC IE N T L Y equipped to handle all busi­
ness pertaining to banking, and offer a com­
plete service to accounts of banks, corporations,
firms and individuals.

T rust D e p a r t m e n t
R eal E sta te L o a n s
F o r e ig n

E xchange

Sa f e D e p o s i t B oxes

October, 1919

THE

NORTHWESTERN

form. Wills constitute the most important item which
can come into a trust department. All the property
in a community changes ownership once in about
twentyffive years, and most of it passes by will.
A national bank having established a trust depart­
ment, the first duty of the directors and officers of the
bank should be to lodge their wills with the depart­
ment. It has been said that if a man has three true
friends, he is rich, and this applies to a trust depart­
ment; if the directors and officers will favor the depart­
ment with their wills, it is well on the road to success.
It has been suggested that national banks are not
qualified to handle trusts of long duration, by reason
of the shortness of their corporate lives. This theory
is absolutely without merit and without foundation^
for national banks can and do automatically renew
their charters, and usually do so with more ease and
less friction than do trust companies. In this connec­
tion, let me say that of far greater importance than
the longevity of national banks is the paramount pro­
tection afforded by the double liability of their stock­
holders.
The fiduciary field in the United States is an exten­
sive one and has scarcely been encroached upon by
those acting in corporate fiduciary capacities. The
opportunity for national banks is boundless. The
reasons for giving preference to corporate fiduciaries
are now almost axiomatic. All that has been written
and all that can be written on the subject, upon which
these reasons are based, come from financial respon­
sibility, continued existence, financial judgment, ac­
cumulated experience and impartiality.
The customers of a bank, including its depositors
and its borrowers, from time to time, seek counsel and
assistance in their everyday business affairs, and it
is but an extension of this relation that they should
place their estates in the hands of the bank for manage­
ment after death.
Whether or not national banks in towns and in the
smaller cities will be enabled to successfully avail them­
selves of the benefits of the new law is an untried prob­
lem and one which only experience will demonstrate.
My own opinion is that a national bank situated in a
county seat or in a city having a. population of ten
thousand inhabitants may accept the certificate from
the Federal Reserve Board with reasonable assurance
of success.
'Let me say, with emphasis, that those who con­
template the establishment of a trust department should
not assume the new relation unless there is a fixed de-

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Our fam ou s M ineral W aters
prescribed by ph ysician s.

Snapp

Located n earer a ll th e fa ­
m ous m in eral sp rin g s and
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E x c e lsio r Springs, Mo.

ABSOLUTELY
FIRE-PROOF
Where
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Federal Reserve Bank of St. Louis

BANKER

Business Experience at
The Director’s Table
This institution is dominated by men who have
made conspicuous success in business ventures
of large proportions, men representing a wide
variety of enterprises and an all embracing
commercial experience. The corporations with
which they are closely identified have the; pulse
of the middle west constantly in touch. They
know the business community, understand its
needs and conceive its scope.
Their bank is fully organized in every depart­
ment and they propose that it shall serve and
grow with the business organizations of the
Mississippi Valley and the Great Lakes coun­
try. They have provided complete facilities
and personal service for correspondent banks.
These are the men who direct the policies of
the institution:
B. F . A F F L E C K , P r e s i d e n t U n i v e r s a l P o r t l a n d C e m e n t
C o m p a n y , C h ic a g o , 111.
F . L. BA TEM A N , P re s id e n t T ra n s c o n tin e n ta l F r e ig h t
C o m p a n y , C h ic a g o , 111.
C. A. B IC K E T T , P r e s i d e n t T h e B i c k e t t C o a l a n d C o k e
C o m p a n y , C h ic a g o , 111.
W IL L IA M B U T T E R W O R T H , P r e s i d e n t D e e r e PlowC o m p a n y , M o lin e.
J O S E P H B Y F IE L D , P r e s i d e n t H o t e l S h e r m a n C o m ­
p a n y , C h ic a g o , 111.
A. A. C R A N E , V ic e P r e s i d e n t F i r s t a n d S e c u r i t y N a ­
t i o n a l B a n k , M in n e a p o lis , M in n e s o ta .
D O N A L D R . CO T T O N , C a r n e g ie S te e l C o m p a n y , S t.
P a u l, M in n e s o ta .
J O S E P H B . E D W A R D S , P r e s i d e n t K e l l o g g S w itc h ­
b o a r d & S u p p ly Co., C h ic a g o , 111.
S A M U E L M. H A S T IN G S , P r e s i d e n t C o m p u tin g S c a le
Co. o f A m e r ic a , C h ic a g o , 111.
JA M E S C. JO H N S O N , V ic e P r e s id e n t? ,
E D W A R D R . L IT S IN G E R , A tto r n e y .
H A R R Y H . M E R R IC K , P r e s i d e n t .
JO H N S. M IL L E R , A t t o r n e y , C h ic a g o , 111.
H . H . OG D EN , P re s id e n t T h e F i r s t N a tio n a l B a n k ,
M u s k o g e e , O k la h o m a .
O T TO E . O S T H O F F , V ic e P r e s i d e n t H . M. B y lle s b y &
C o m p a n y , C h ic a g o , HI.
J . C. P A D D O C K , C a s h ie r T h e M e r c h a n ts & I l l i n o i s N a ­
t i o n a l B a n k , P e o r ia , 111.
R A Y R . P H E L P S , V ic e P r e s i d e n t , C h ic a g o , 111.
D A V ID B. P IE R S E N , V ic e P r e s i d e n t S te p h e n s - A d a m s o n M fg . Co., A u r o r a , 111.
FRANK
W . R E N W IC K , V ic e P r e s i d e n t C h ic a g o
G r a v e l Co., C h ic a g o , 111.
J O H N F . S M U L S K I, P r e s i d e n t N o r t h w e s t e r n T r u s t &
S a v in g s B a n k , C h ic a g o , 111.
G E O R G E H . T A Y L O R , R e a l E s t a t e , C h ic a g o , I llin o is .
JO H N W . T H O M A S, V ic e P r e s i d e n t , C h ic a g o , T lin o is.
L . M. V IL E S , P r e s i d e n t B u d a C o m p a n y , C h ic a g o , 111.
C H A S. C. W IL L S O N , V ic e P r e s i d e n t a n d C a s h ie r , C h i­
c a g o , 111.
W . A. Y A G E R , P r e s i d e n t A r m s P a l a c e H o r s e C a r Co.,
C h ic a g o , 111.
J O S E P H I. Z O O K ,.T r e a s u r e r M o n tg o m e r y W a r d & Co.,
C h ic a g o , 111.
M ember Federal Reserve System

Operated on the A m erican P lan
R a t e s f r o m $4.00 to $6.00 p e r
d a y . A m e r ic a n p la n .

Great
Lakes Trust Co.
110 South Dearborn Street, Chicago

W rite f o r b o o k le t

Reservations by wire or mail.will
have our immediate attention.

Capital $3,000,000
Surplus $600,000

21

THE

22

NORTHWESTERN

At Your Service in Chicago
We want your Chicago account. We have
the facilities and the spirit to serve you
well. The personal attention we give to
accounts aims to be as broadly helpful as
we can make it.
Let us submit details by letter or through
our representative.
On inactive reserve accounts, subject to
withdrawal in whole or in part on ten
days’ notice, a favorable rate of interest
is allowed. The regular clearing house
rate of interest paid on active accounts.
B A N K IN G
BONDS
S A V IN G S
TR U ST
V A U L T S of the Northern Trust Safe Deposit Company
M em ber F ederal R eserve System

THE NORTHERN TRUST CO.— BANK
N. W. Cor. La Salle and Monroe Sts., Chicago
C A P IT A L A N D

SUR PLU S

-

$ 3 ,0 0 0 ,0 0 0

D IR E C T O R S

ERNEST A. HAMILL
Pres. Com Exchange National Bank

JOHN T. PIRIE
Carson, Pirie, Scott & Co.
MARTIN A. RYERSON
WALTER BYRON SMITH
JOHN STUART
2nd Vice-Pres., Quaker Oats Company
EZRA J. WARNER
President, Sprague, Warner & Co.

CHARLES L. HUTCHINSON
Vice-Pres. Cora Exchange Nat’l Bank

Pres. The Northern Trust Company

A. C. BARTLETT, Chairman
Board of Directors, Hibbard, Spencer,
Bartlett & Co.
WILLIAM A. PULLER
R e tire d M a n u fa c tu re r

S O L O M O N A . S M IT H

BANKER

October, 1919

! -termination to give it a fair trial, and to finance the
enterprise for a considerable length of time.
We are ushered into the world in a state of dumb
amazement and go out of it in the same way, and most
of our fortunes mechanically take their course. Less
than ten per cent of the people dying leave estates of
over five thousand dollars in value. The attempt of the
dead hand to guide the fortunes and destinies of those
who follow is frequently attended with disaster, bitter
hatred and a lack of love and reverence for those who
have departed. Trusts of long duration rarely, if ever,
work out perfectly.
The advertising necessary and incident to a trust
department, in my judgment, should always be of a
dignified nature. The business of the trust department
itself is of a serious and dignified nature. Pamphlets
and brochures, if well conceived and if penned by. hands
trained in the work, have their advantages, when
properly distributed.
Newspaper advertisements
which point out the capital and surplus of the bank
and pointedly suggest the advantages offered by it
serve to keep the name of the bank before the world;
but for the most part, the paying business of a trust
department, that part of it which brings the best re­
turns, comes from the personal touch, by reason of
acquaintanceship and of family connections. A man
puts into his will his well-reflected intentions. The
execution of the will is probably the most serious act
of his life, and he no more selects from the pamphlet
or the newspaper his executor than he does therefrom
get his religion. It is said that ninety-one per cent of
all American business is conducted through the mails.
Letter-writing is useful and has become a finished art.

II
I■I
4

Country Banks—
Let Us Serve You
We have the Capital, $1,000,000;
and the resources----- more than
$4,000,000 assets—Over 4000 de­
positors.
It is our desire and our ability to
serve you efficiently that prompts
us to ask you to stop in and get
acquainted the next time you are
in Des Moines.
We will be in our own building at
Sixth and Locust about Jan. 1st.
B. F. Kauffman, President
C. H. Stephenson, Cashier

M ember Federal
Reserve System

BANKERS TRUST COMPANY
C O N H O tP irm AMD WALNUT S T R E E T S

CAPITAL ONE M IL L IO N D O L L A R S
Ashton Clemens
C. H. Stephenson
F. W. Sargent


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

D IR E C T O R S
Dr. O. J. Fay
J. W. Howell
S. Sheuerman

H. H. Polk
B. F. Kauffman
R. R. Rollins

5

3SI
i
3

1
J
i

Overseas Service
From the Atlantic to the Pacific this Country
is experiencing and expecting still
greater developments in America’s
International Commerce.

OUR
FOREIGN DEPARTMENT
is at your service for the solution of the
many International Trade problems.

5
5'

Î1
(E fim ir a l
4

i

I

Is

N a tio n a l S a n k

o f N pm fo r k
(E stablished 1824)

THE

October, 1919

NORTHWESTERN

Unusual expressions in letters or in advertising, so far
as the trust department is concerned, should be
avoided, but appropriate advertising through intelli­
gent channels will accomplish great ourposes and break
down apparently impassable barriers.

T

ravelers

23
The

1857

FUTURE VALUATION OF FARM LANDS.
(Continued from page 9.)
land is worth a sum upon which a fair rate of interest
and a fair return for management can be secured, year
after year, by the growing of crops which are adapted
to the land and which have an assured market under
ordinary production and condition. In brief, the value
of land depends upon its continuous productivity (with­
out injury to itself) and its availability to a steady mar­
ket. In the past it has been rather generally accepted
that land which would return three per cent annually
on its capitalization was agood investment, in view
of the approximate annual increase in value of 10 per
cent, extending over a period of many years. In a
word, $200 farm land must bring the owner $6 a year,
the balance of his profits to come out of its ultimate
sale at an increased price. Some authorities place the
justifiable rate lower, figuring even two per cent as
vindicating the owning and operating of land, in view
of the stability and ready convertibility of the security
and its almost inevitable increase in value from year
to year.
I believe, from personal experience farming Iowa
land, from observation, from contact with farmers all
over the country, from recent investigation, and from
a lifelong study of farming and banking as correlated
subjects, that the present land prices are warranted
and that we shall see no appreciable decline for many

uaranty

BANKER

1919

Merchants

Loan

Statement of Condition at the Close of Business September 1 2 , 1 9 1 9 .
R E SO U R C ES .

Loans and Discounts........................................................... $
United States Bonds and Certificates..............................
Other Bonds and Mortgages.............................................
Stock in Federal Reserve B ank .....................................
Customers’ Liability under Letters of C redit............
Customers’ Liability under Acceptances......................
Other Banks’ Liability on Bills B ought.........................
Cash and Due from Federal Re­
serve Bank ........................................$ 11,417,939.65
Due from Other Banks and Bankers 2 0,468,210.72
Checks for Clearing H ouse.......... ..
2,907,748.66

69,961, 402.97
6,130, 950.00
12,391. 998.24
420,
2,787, 993.00
12,625, 134.50
3,787 656.00

000.00

.

34,793.899.03

$142,299,033.74
L IA B IL IT IE S .

Capital .......... ............................................................... ..
5.000.
000.00
Surplus ...............................................................................
9.000. 000.00
1,642,435.22
Undivided Profits ...........................................................
Reserved for Accrued Interest and Taxes.................
892,012.74
Liability on Letters of C redit............... ........................
2.787.993.00
Liability on Acceptances...............................................
10,906,894.50
Contingent Liability on Other Banks’ Bills Bought.
3.787.656.00
Deposits ............................................................................ . . 1081282,042.28

$142,299,033.74
ORSON SMITH ......................................................Chairman of the Board
EDMUND D. H U LB ER T................................................................. President
FRANK G. N ELSON................................................................Vice President
JOHN E. RLUNT, J R ..............................................................Vice President
.V icePresident
C. E. E S T E S .....................................................................
F. W. THOMPSON..................................................................Vice President
H. G. P. D EANS...................................................... ................ Vice President
P. C. PE TE R SO N ...................................................................................Cashier
JOHN J. G ED D ES........................................................... .. Assistant Cashier
F. E. LOOMIS.......... .......................................................... Assistant Cashier
A. F. PITH ER ...................................................................A ssistant Cashier
LEON L. LO EH R .............................................Secretary and Trust Officer
A. LEONARD JOHNSON................................ ..............Assistant Secretary
G. F. H A R D IE....................................................Manager Bond Department
CUTHBERT C. ADAMS............ .. Assistant Manager Bond Department
CHICAGO.

C h e c k s —“ Safer

than Cash”—are nationally advertised,

G and the demand for them is steadily increasing. They are sold exclusively through
banks. An agency for these checks is a source of profit for the selling bank and a
feature of service to its customers.

Why not write us for full particulars ?

Guaranty Trust Company of New York
New York

London

C ap ital an d S u rp lu s $50,000,000


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

Liverpool

-

Paris

Brussels

R esou rces m ore th a n $800,000,000

24

THE

NORTHWESTERN

Central T rust
Company
OF DES MOINES

Capital

-

-

$ 5 0 0 ,0 0 0 .0 0

Surplus

-

-

$ 2 0 0 ,0 0 0 .0 0

W ill receive and execute trusts of every description, acting as Exec­
utor, Administrator, Guardian and Trustee.
The security afforded by the ample capital of this Company, the
constant supervision of its affairs by competent directors render its
employment for the purpose named peculiarly advantageous.
The Company buys and sells bonds, warrants, special assessment
certificates, first mortgages and other investment paper.

Purely a Trust Company, Not a Bank
O F F IC E R S A N D D IR E C T O R S .
J. S. RAWSON...................

.................. President
. . . .Vice President
...................Secretary
...................Treasurer
.......... Trust Officer
Assistant Secretary
.....................Auditor

CHARLES L. GILOREST
L. B. BARTHOLOMEW.
GRANT MoPHERRIN . . ,
L. M. GRIM ES..................
TAYLOR G R IM E S ..........
R. E. JACKSON..................
SIMON CASADY
H. R. HOWELL
F. W. HUBBELL
L. O. KURTZ
HENRY S. NOLLEN

CHAS. A. RAWSON
H . E. RUMSEY
M. SAMISH
W. E. TONE
N. M. WILCHINSKI

D es M oines
Trust Co.
General Banking
We have increased our organization and are
exceptionally well connected to serve the
banks and bankers of Iowa.

Farm Mortgages
Negotiated, bought and sold on favorable
terms.

BANKER

October, 1919

years to come. I do not claim to know. I recall that
it was Lowell’s advice given in the Bigelow Papers'
“Don’t never prophesy, unless ye know.”
This brings me around to my fourth point, that farm­
ing will be conducted more scientifically than ever be­
fore, that a new type of intensive farmer will result
from the decrease in the value of farm products and the
increase in the value of farm land.
With the true American spirit, we have boasted for
many years that the United States leads the world in
farm methods and production. I fear we have been
carried away by enthusiasm. The fact is that while
in every other industry we are abreast of the most ad­
vanced nations—in commerce, manufacture, banking
and merchandising—there is not a nation in the world
that cannot teach America something about farming.
I might add that with farm land bringing the price
now being paid for it, we are going to have to learn
everything that every nation can teach us. The reas­
suring part is that we have already begun to learn. We
practice rotation of crops; we have soil analysis made
and adapt our crops to the soil ; we are using natural
and commercial fertilizers more and more each year.
Wejare struggling to get away from being $100 farmers
on $100 land. We realize that we must be $500 farmers
on $500 land.
As George E. Roberts said, in his address before
the Iowa Bankers’ Association at Fort Dodge : “What
we want is more of everything for everybody. The
secret of social advancement is in increased produc­
tion. We want 30 bushels of wheat to the acre instead
of 15; 72 bushels of corn instead of 36; 300 pounds of
butterfatto a cow instead of 150; locomotives that will
dràw 100 cars to a train instead of about 50; machinery

Bank Burglars
CANNOT Enter the Safes and
Vaults of 159 Iowa Banks
One hundred and fifty-nine Iowa banks already have made their
safes and vaults hurgiar-proof with the emergency Anakin lock.
No burglar yet has succeeded in getting into a safe equipped with
this lock, although a great many nave tried. Yeggman are work­
ing overtime—-they do not belong to the union. , They may strike
any time AT YOUR BANK. Get an Anakin emergency lock on
your safe and vault a t once. They never will get inside if this
lock guards the safe.
L et us send you a list of hanks and firms whose Vaults and
safes have been tried by burglars who were baffled in their attem pt
by the Anakin lock. L et us send you letters from these banks
and firms, and also from leading detectives of national reputation.
This lock is endorsed by leading detective agencies, including
Bum s and Pinkerton & Co., and by safe experts throughout the
country.

TH E A N A K IN
Burglar Proof Lock

O F F IC E R S

M. H. W elton, P resid en t
H arry F. Schoen, V. Pres.
R oy R. W elton, V ice P res. M. A. Y oung, Cashier
Chas. H. Bryant, Secretary

ANAKIN LOCK WORKS

D IR E C T O R S

M. H. W elton
R oy R. W elton
H arry F . Schoen


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

I. M. L ieser
W. P. B air
Chas. H. B ryant

Iowa Agencies

W .. O. Dillon, F o rt Dodge
T. W. Parks, Algona
O. G. Watkins, 402 Hubbell Bldg., Des Moines
L. B. De Mange, Marshalltown

F. S. Shankland
S. J. Don Carlos
R. E. Ostrus

21 N. La Salle St.
CHICAGO
JOHN H. TAFT, General Manager

THE

October, 1919

NORTHWESTERN

that will make 10 yards of cloth where it now makes
5; and so on all around the circle of the industries.”
Nor is this impossible of achievement in the agri­
cultural world. Mark Twain once said he was the only
farmer in Connecticut who could make two ears of corn
grow where three had grown before. Our western
farmers may admire his literary ability, but not his
agricultural. We have thousands of farmers who can
make two ears of corn, two heads of wheat, two pigs,
two calves, grow where but one grew before. They
will have to do it on $500 farm land, and, having to do
it, they wil proceed to do it, for that is the American
way.
Nothing makes a man dig in his toes so firmly and
lean so heavily against the yoke as being in love and
in debt. The man who pays $500 an acre for land will
have to love the land, else he will know, in advance,
that his venture is doomed to failure. And, loving the
land, he will work all the harder and better to make
it yield abundantly so that the debt which spurs him on,
under the burning sun, can be wiped out at as early a
date as possible. The man who stands still in the
agricultural world is just as bad off as the man who
stands still in the financial world of the city. He must
advance. And there is no goad like a debt—not a hope­
less, implacable, driving debt, but one which carries
its reward of easier and better times with it and leads
to the shining goal just over the next hilltop.
The Farmers Terminal State Bank, of Newport,
Minn., will be capitalized at $30,000 with Herman
Hillmond, Elbow Lake, president.

BANKER

25

THE B/L B A N K
OF CHICAGO
W ith the prospects of bumper crops, the strain of
financing on the banks of the country is greater
than ever before.
W e solicit inquiries regarding facilities for IM ME­
D IA T E CREDIT and DIRECT COLLECTION
at M INIM UM COST of Bill of Lading items on
all receiving points in the United States and
Canada.
Such an arrangement provides the simplest and
m ost convenient, as w ell as economical, method
of crop financing.

UNION TRUST COMPANY
CHICAGO
STRICTLY

A COMMERCIAL

BANK

M e m b e r F e d e ra l R e s e r v e S y s te m

M a jo r ity o f
B a n k in g

Tow ns

in I o w a R e c e iv e
I te m s D ir e c t
jM Ìi

T h r o u g h th is
D e p a rtm e n t

W rite u s for I n ­
form ation Reéardin é th is S e rvice.
C o rn e r o f O u r T r a n s it D e p a r tm e n t.

Iow a B ank ers w h en in D es M oin es are cord ially in v ited to v isit th is in te r e s tin g d e p a r tm e n t
o f ou r b an k .

IO W A L O A N A N D T R U S T C O M P A N Y
BANK

D E S M O IN E S , U. S. A .


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

26

THE

NORTHWESTERN

BANKER

October, 1919

Legal O pinions and D ecision s
Questions of interest to bankers are discussed in this
was considerable doubt
Question: In your Sep­
department and any subscriber has the privilege of writing
as to the light in which
tember issue, page 36 I
for information and advice on legal subjects. He will re­
such bills were to be
ceive a direct reply from our attorney without fee or ex­
note question and answer
pense. A brief of any subject, involving research in a
viewed. But it is now
relative t o protest o f
complete Law Library, will be furnished for $10.00. In
settled beyond question
items. Will you ask your
writing for information, kindly enclose a 3-cent stamp for
by
decisions in the state
attorney to advise you as
reply and address “ Legal Department,” care The Northand federal courts that
Western Banker, Des Moines, Iowa.
to whether a check drawn
such a bill is a foreign bill.
in Iowa, payable to a firm
in Nebraska, item on an Iowa bank and drawer has no Demand and notice are sufficient and protest is not
funds, would this be classed as a foreign item? If so, necessary to make an indorser liable on a promissory
then I would infer that no check drawn in this state note, unless prescribed by statute. Where any ne­
on a bank in the state would be subject to protest. I gotiable instrument has been dishonored it may be
have been in the banking game a long time and this is protested for nonacceptance or nonpayment, as the
a new phase to me and I would like to receive more case may be; although protest is not required except
enlightenment on the subject.
in the case of foreign bills of exchange.”
Answer: Protest is not necessary on an inland bill
So we believe you will find in the above quotation a
of exchange in order to render the endorsers liable. complete answer to your question, relating to a check
But this does not mean that an inland bill of exchange drawn in this state on a bank in this state being sub­
would not be subject to protest. It is simply a ques­ ject to protest. It is subject to protest, but protest is
tion of the necessity of protest in order to hold en­ not necessary.
dorsers.
The check drawn in Iowa on an Iowa bank, even
We quote from Ruling Case Law, under the heading though the payee is a Nebraska firm, is an inland or
of Bills and Notes, Sec. 550:
domestic bill of exchange, because it is drawn in Iowa
"A protest, whether for nonacceptance or for non­ and payable in Iowa, and drawn on an Iowa bank. If
payment, is essential in the case of a foreign bill of ex­ it were drawn on a Nebraska bank, it would be a for­
change, in order to charge the drawer or endorser; and eign bill of exchange, and protest would be necessary
where a bill has been dishonored on presentment for in order to hold the drawer or indorsers. With the do­
acceptance, it is not sufficient to protest it for non­ mestic bill it is unnecessary, but not forbidden.
Question: “A” sells a piece of property to “B” for
payment at maturity. The Negotiable Instruments
Law (which is Sec. 3060-al52 of the Iowa Supplement the sum of $6,000.00, receiving $1,000.00 cash, and the
to the Code) provides as follows: ‘Where a foreign bill balance to be paid in five years’ time in yearly install­
appearing on its face to be such is dishonored by non- ments of $1,000.00 each. No deed was given, the prop­
acceptance, it must be duly protested for nonaccapt- erty being sold on a contract. The insurance to be held
ance, and where such bill which has not been prev­ by “A” and payable to “A” in case of loss as his inter­
iously dishonored by nonacceptance is dishonored by est may appear. For instance, if there was a fire loss
nonpayment, it must be duly protested for nonpay­ of $3,000.00, and “B” still owed $4,000.00 on the con­
ment. If it is not so protested, the drawer an-d indors­ tract, “A” is to receive all of the insurance. If, how­
ers are discharged. Where a bill does not appear on ever, the loss is $3,000.00 and there is only $2,000.00
its face to be a foreign bill, protest thereof in case of still owing from “B” on the contract, then “A” would
receive $2,000.00 and “B” $1,000.00.
dishonor is unnecessary.”
“By the custom of merchants in England, and
In asking the insurance agent to make the proper
wherever the law merchant is recognized, a protest is endorsement on the fire insurance policy, he made the
necessary only in the case of foreign bills; the protest same payable to both “A” and “B” as their interests
of an inland bill is not necessary. Bills drawn in one may appear. W e held that this endorsement would not
state on a resident of another are foreign bills of ex­ fully protect “A,” for if “B” had paid $2,000.00 on the
change, and protest is necessary. At one time there contract, he would have one-third interest in the prop-

THE

O F F IC E R S
W . V . E s c h e r . P r e s id e n t
H u s h M. G ilm o re . V ic e P r e s .
•I. A . P a rd en , C a s h ie r
C. E . B ro o k s. A s s t . C a s h ie r
E , G. D u n n , V ic e P r e s .

City National
Bank

Combined

MASON CITY, IOWA.

U N IT E D

STATES

D E P O S IT O R Y

C a p ita l a n d S u rp lu s $250,000.00


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

Resources Over Three Million Dollars

Adequate facilities for the
service of banks, corpora­
tions and individuals.

City Trust & Savings Bank
C a p ita l $50,000.00

October, 1919

THE

NORTHWESTERN

27

BANKER

The

Successful
Habit
More than 800,000 practical working farmers find inspiration, guidance and help in every
issue of Successful Farming. That is why they often sit up late when the magazine arrives—they
become so interested that sleep is a secondary consideration.

HELP US TO HELP YOU
Successful farming maintains a number of
Bureaus in charge of competent men who are
glad to render every assistance possible in
connection with the improvement of methods
and the development of more successful agri­
culture.
Your best customers today are farmers.
They look to you for help. They may ask
questions which you are unable to answer.
In such a situation take advantage of the Bu­
reaus maintained by Successful Farming.
F. J. W RIGHT
Promotion Bureau
J. A. EVERS
Merchandising and
Sales Bureau
R. A. BATES
Adjustment Service
Chicago Office
J. C. Billingslea
Advertising Bldg.


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

Your inquiry will have the immediate atten­
tion of a qualified member of our staff and it is
important for you to bear in mind that these
men are in close touch with the agricultural
colleges and experiment stations and in posi­
tion to give authoritative information.
Cooperation is the key note of the wonder­
ful era upon which we are entering. Ask us
questions. Help us to help you to help your
farmer customers.

S u c c E S S FU LÜ te F

a r m in g

T. W. LeQUATTE,
E. T. MEREDITH,
Advertising Manager
Publisher
DES MOINES, IOWA
New York Office
A. H. Billingslea
1 Madison Avenue

St. Louis Office
A. D. McKinney
Post-Dispatch Bldg.

Kansas City Office
0 . G. Davies
Victor Building

C. A. BAUMGART
Retail Service Bureau
GEO. E. MARCELLUS
Country Newspaper
Relations
J . B. CORRIE
Data Service
.
Minneapolis Office
R. R. Ring
Palace Building

28

THE

NORTHWESTERN

Travelers' Checks
K N & K Travelers Checks have
been described as “available every­
where.M Their use and distribu­
tion is advantageous to the bank­
er and client alike.
They are among the oldest and
best known in the banking field.
W RITE FOR FURTHER INFORMATION

Knautt) NartjoO & Kitline
Founded 1852

Members N ew York Stock Exchange
Equitable Building
N ew York

BANKER

October, 1919

erty, and “A” would have two-thirds interest, and in
case of loss, as the policy now stands, one-third of the
same would go to “B” and two-thirds to “A”, and “A ”
would, therefore, not be fully protected.
The insurance agent states that this would not be
the case, but that all insurance would go to “A” if “B”
still owed “A” the amount received on the policies in
case a loss occurred.
Answer: You hardly give enough of the contract
for us to state whether or not the insurance agent’s
position is correct, but we are inclined to think that
it is. The contract of sale usually makes it sufficiently
specific how the insurance money is to be divided in
case of loss, that such an endorsement as you quote
would be sufficient.
Quite often a longer endorsement is used for the
protection of the insurance company, but taking the
case as you state it, I believe the endorsement would
fully protect “A”.
F. W. KAMMAN RESIGNS.
F, W. Kamman, vice president of the National Bank
of Commerce, Sioux City, has resigned and he will
open an investment banking business on the sixth
floor of the Farmers Loan & Trust Company building.
Mr. Kamman has been associated with James F.
Toy, president of the National Bank of Commerce,
ever since the bank was founded in 1890. He began
his career with Mr. Toy at Storm Lake, starting as a
clerk,
“My object in resigning is to enter business for my­
self,” said Mr. Kamman. “I have always been a be­
liever in working for yourself.”

B iltm ore H om espun
“Reasons Why” No. 8

Rapid Collection
of Funds
Ninety per cent of all out-of-town
checks sent by correspondent banks
are collected DIRECT or through
but one intermediary.
Should not the factor of rapid col­
lection of funds enter into vour se­
lection of a correspondent?

7 /te N a t io n a l ( i t y R a n k
o f (R ic a g o
DAVID R. FORGAN, President

* BANKS AND BANKERS DEPARTMENT
F. A. CRANDALL, V-Pres. HENRY MEYER, Asst. Cash.
S. P. JOHNSON, Asst. Cash. R. V. KELLEY, Asst. Cash.

A n ideal fabric fo r a Banker

On Display Now —
T h e g e n u in e h a n d - w o v e n B iltm o r e H o m e p s u n , m a d e
a t t h e s h o p s o f t h e B iltm o r e I n d u s t r i e s , G r o v e P a r k I n n ,
A s h v ille , N o r t h C a r o li n a , g u a r a n t e e d to c o n ta i n a b s o l u te ly
n o th i n g h u t n e w S h e e p s W o o l.
T h e w o o l f r o m w h ic h t h i s c lo th is m a d e w a s p u r c h a s e d
in i t s o r ig in a l s t a t e j u s t a s it is s h e a r e d f r o m t h e s h e e p
in t h e m o u n t a i n s o f N . C .
I t is t h o r o u g h ly w a s h e d b e f o r e d y e in g , a f t e r i t is d y e d
i t is c a r d e d , s p u n a n d w o v e n o n o ld f a s h i o n e d h a n d lo o m s .
T h e f i n i s h e d c lo th is t h e n th o r o u g h ly s c o u r e d in a s c o u r ­
in g m a c h i n e in t h e o ld - f a s h i o n e d w a y in h o t w a t e r a n d
s o a p , a n d t h e n s h r u n k in th e s u n . A ll c o lo r s a r e g u a r a n t e e d .
B iltm o r e H o m e s p u n s a r e n o t e x p e r i m e n t s ; th e y h a v e
b e e n o n th e m a r k e t fo r y e a rs . W e re o rig in a te d b y M r s .
G e o r g e W . V a n d e r b il t o n t h e f a m o u s B iltm o r e E s t a t e ,
w h e r e t h e y w e r e m a n u f a c t u r e d u n t i l 1 9 1 7 . T h e B iltm o r e
I n d u s tr ie s w e re p u rc h a s e d e n tire b y th e G ro v e P a r k In n ,
In c . m th a t y e a r a n d a re o p e ra te d b y th e s a m e w o rk e rs,
a n d e v e r y p ie c e o f H o m e s p u n b e a r i n g t h e B iltm o r e l a b e l
is g u a r a n t e e d in e v e r y w a y .

N IC O U L The T ailor
J e r r e m s’ S o n s
3 1 5 7th St.


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Federal Reserve Bank of St. Louis

D es M oin es , Iow a

, 1919

THE

NORTHWESTERN

BANKER

Experts or Theorists-Which?
The packing industry is intricate, complex
—far more so than the railroads or the telegraph.
Every day multiplying needs of society
increase its problems and multiplying respon­
sibilities demand more of it.
Highly trained experts, specialists of years'
experience, thinkers and creative men, devote
their lives, their energies, their activities, to
solving the problems of the packing industry
and meeting its widening duties.
Swift & Company is not a few dozen packing plants, a
few hundred branch houses, a few thousand refrigerator
cars, and a few million dollars of capital, but an organization
of such men. It is the experience, intelligence, initiative and
activity which operates this physical equipment.
Can this intelligence, this experience, this initiative and
creative effort which handles this business at a profit of only
a fraction of a cent per pound from all sources, be fostered
through the intervention of political theorists, however pure
their purposes? Or be replaced by legislation? Does Congress
really think that it can?
Let us send you a Swift “Dollar”.
It will interest you.
Address Swift & Company,
Union Stock Yards,
Chicago, 111.

Swift & Company, U. S. A.


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Federal Reserve Bank of St. Louis

30

THE

NORTHWESTERN

BANKER

October, 1919

IOWA BANK NEWS
CITY NATIONAL BANK, CLINTON, IOWA.
The City National Bank of Clinton, Iowa, which was
established in 1870, and organized as a National Bank
in 1880, has been making a constant and continuous
growth ever since that time. On September 12, 1919,
the capital was $250,000; surplus and profits, $384,000.00, and deposits over $4,731,000.00.
This excellent showing is indicative of the success
which the officers have had in the management of the
bank and is conclusive evidence that they have handled
the accounts of their customers in a most -satisfactory
manner.
The officers who are responsible for this excellent
record are: Alfred G. Smith, president; Geo. M. Cur­
tis, vice president ; Alfred C. Smith, vice president and
cashier; John H. Nissen, assistant cashier; Henry D.
Kramer, assistant cashier.
BANKERS OF O’BRIEN COUNTY MEET.
The meeting of the bankers of O’Brien county, Iowa,
held recently at Primghar, Iowa, was largely attended.
The guests of the evening were George S. Parker, pres­
ident of the Live Stock National Bank, Sioux City,
Iowa, and past president of the Iowa Bankers Asso­
ciation, and National Bank Examiner J. L. Kennedy,
of Sheldon. Mr. Parker gave a very interestihg and in­
structive address on “The Congressional Investigation
of the Packers.”
TRAVELS BY AIRPLANE.
Among one of the novel ways used in making a
political campaign is that by which W. F. Moore, vice
president of the Peoples State Bank at Guthrie Center,
Iowa, is making his. Mr. Moore is a candidate for
lieutenant governor of Iowa, and is answering the call
for his many invitations to speak to the different sec­
tions of the state by airplane.
JOE H. ROSS RETIRES.
Joe H. Ross has retired from active duty at the Iowa
Savings Bank, Audubon, Iowa, and will be succeeded
by Gay S. Thomas. The change was made necessary
by the fact that the health of Mrs. Ross is such that
physicians have advised her that she must seek a milder

A

m e r ic a n

climate. Mr. Ross regrets very much that it has be­
come necessary for him to leave Audubon and to sever
his active connection with the bank that he has helped
to develop. He has retained a large part of his stock
and will remain one of the directors and vice president
of the bank.
J. W< BROWN DIES SUDDENLY.
The death of Jonathan W. Brown, well known law­
yer, banker and city commissioner, which occurred re­
cently, removed from Sioux City a real landmark. Mr.
Brown removed from New York state to Sioux City in
1888. As a financier, Mr. Brown was at one time a
large investor in land in this section of the west. As
a citizen he constantly gained a reputation for probity
and sound judgment. Mr. Brown was a very large
and very strong man and he had kept his vigor, men­
tally and physically to the last. The news of his death,
therefore, was a real shock to the community, which he
had served in many invaluable ways during his resi­
dence there.
E. M. STARK RESIGNS.
E. M. Stark, for the past nine years cashier of the
Conrad State Bank, Conrad, Iowa, resigned recently
and has moved to Riverside, California, where he ex­
pects to engage in the automobile business. Harry C.
Marks, for five years cashier of the State Bank of New
Providence, for three years with the First National
Bank of Eldora, Iowa, and for the past year teller of
the Waterloo Savings Bank, Waterloo, takes the posi­
tion vacated by Mr. Stark, assuming his duties at once.
FIRST NATIONAL THIRTY-ONE YEARS OLD.
The First National Bank of Spencer, Iowa, is one
of the leading financial institutions of Clay county.
This stable institution was organized in 1888 and in
all the thirty-one years of its life, has been a foremost
factor in the development of the community. The
president of the bank is C. P. Buckey, who joined the
working force of the bank about eighteen years ago.
Mr. Buckey is also the vice president of the Peoples
Savings Bank, which is the savings bank organization

St a

te

Bank

C A P I T A L , $200, 000. 00
L. M. SWINDLER, President
D. W. GEISELMAN, Vice President

OMAHA

i O W A Ba n k s desiring an
A accom m odating Omaha
connection are invited to cor­
respond with our officers.


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Federal Reserve Bank of St. Louis

ROY E. KARLS, Cashier
D. C. GEISELMAN, Asst. Cashier

1V/TAN AGED by bankers of
practical experience who
Í
know the requirem ents of
H Middle-Werft
Bankers.

October, 1919

THE

NORTHWESTERN

run in connection with the First National. H. N.
Smith is vice president; Charles Howe, cashier and
Arthur E. Anderson is assistant cashier.
WILL ERECT NEW BUILDING.
The Holstein Savings Bank, Holstein, Iowa, is com­
pleting plans for the erection of a new bank building
to cost $75,000. Although this bank is one of two lo­
cated in Holstein, a town of 1,400, it has over $1,700,000 in deposits. C. J. Wohlenberg, well known .Iowa
banker, and former treasurer of the Iowa Bankers As­
sociation, is cashier of this prosperous institution.
Other officers include J. W. Reed, president and J. C.
Kuchel, vice president.

The Cedar Rapids
National Bank
W ith Capital, Surplus and Profits of
$ 8 5 0 ,0 0 0 .0 0
and Resources $ 1 5 ,0 0 0 ,0 0 0 .0 0

Invites N ew Business

BLACK HAWK COUNTY MEETING.
The Black Hawk County Bankers Association held
their annual meeting at La Porte City, Iowa, recently,
as guests of the bankers of that place. The following
officers were elected for the coming year: H. C.
Schultz, cashier Commercial National Bank, Waterloo,
president; F. B. Miller, president, Cedar Falls National
Bank, Cedar Falls, vice president; Fred H. Wray,
cashier, Leavitt & Johnson National Bank, Waterloo,
secretary; and G. E. Stibbins, cashier, First National
Bank, La Porte City, treasurer.

OFFICERS
R a lp h V a n V e c h te n , P r e s
G eo. B. D o u g la s , V ic e P r e s .
E d . H . S m ith , V ic e P r e s .
G le n n M. A v e r ill, V ic e P r e s .
K e n t C. F e r i n a n , C a s h ie r
M a r tin N e w c o m e r, A. C a sh .
C h a s. C. K u n in g , A s s t. C a sh .
K a r l H . R e h n b e r g , A. C a sh .
Geo. F . M ille r, A s s t. C a sh .
A n n a R . S m o u s e , A u d ito r
P e t e r B a ile y , C h ie f C le r k

o iR Ec r

ELECTS NEW DIRECTORS.
At the regular monthly meeting of the board of di­
rectors of the Security State Bank, Keokuk, Iowa, held
recently, two changes were made in ithe personnel of
the directorate by the election of O. G. Mandt and E.
A. French. Mr. Mandt was chosen to succeed the late
George S. Tucker, and Mr. French acquired the stock
of W. H. Bangs, of New London, the directors placing
him on the board. The officers of the bank are as fol­
lows: President, J. B. Well; vice president, Jacob
Schouten; cashier, E. A. French and assistant cashier,
C. W. Dickinson. The Security State Bank shows a
steady growth and deposits are more than half a mil­
lion. The institution is ably managed and its develop­
ment indicates the strong faith of the community.
NEW COMPANY AT MASON CITY.
A new company known as the Automotive Insur­
ance Company, has been organized at Mason City, la.,
to specialize in automobile insurance. This company
is unique in that there is no organization expense being
permitted. The president of the company, A. M.

31

BANKER

Commercial Savings Bank
DES MOINES, IOWA
We offer a bank large enough to inspire the
confidence of its customers, but not too large
to give every consideration to the interests of
every correspondent.
OFFICERS
John A. Elliott, President
Clyde F. Frazier, Cashier
E. L. Davis, Assistant Cashier
Deposits

—

—

—

-

$1,900,000.00

T H E C IT Y N A T IO N A L BANK
OF CLINTON, IOW A

Capital, Surplus and Profits
D e p o s its ..............................

$ 6 0 0 ,0 0 0 .0 0
$ 4 ,7 0 0 ,0 0 0 .0 0

OFFICERS
A. G. SMITH, President
A. C. SMITH, Vice-President and Cashier
G. M. CURTIS, Vice-Presi d e
J. H. NISSEN, Assistant Cashier
H. G. KRAMER, Assistant Cashier
Accounts of Banks and Bankers received on most favorable terms. Correspondence invited.


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Federal Reserve Bank of St. Louis

32

THE

NORTHWESTERN

ADEQUATE FACILITIES
% and perfected service make this an
ideal reserve bank for Iowa banksEvery courtesy and accommodation extended
consistent with conservative banking.
In­
quiries solicited and appreciated.

BLACK HAWK
NATIONAL
BANK
WATERLOO, IOWA
DR. F . W . P O W E R S, P r e s id e n t

A. E. GLENNY, Vice-Pres. CHARLES W. KNOOP, Cashier
JAMES LOONAN, Vice-Pres. H. E. RUGG, Asst. Cashier
CAPITAL

$ 2 0 0 , 0 0 0 .0 0
RESOURCES

$2,750,000.00
“The Bank of Stability and Progress”

American Savings Bank
Let Us Handle Your Southeastern
Iowa Business
ACCOUNTS OF BANKS AND BANKERS GIVEN
PROMPT AND CAREFUL ATTENTION
H. F. Giesler, President
J. L. Giesler, Vice Pres.

S. L. Johnson, Cashier
J. W. Hahn, Asst. Cash.

Assets Over $3,000,000.00

October, 1919

Schanke, has never permitted his name to be con­
nected with an instituion with which there was any
promotion expense. Mr. Schanke is president of
Schanke & Co., an investment banking concern and is
president of the Commercial Savings Bank of Mason
City and of numerous country banks in Iowa and Min­
nesota, standing high in financial circles in the middle
west.
E. G. Dunn, who is first vice president and counsel,
is a prominent insurance attorney. E. L. Balz, second
vice president, is secretary of the Modern Brotherhood
of America, one of the largest fraternal life insurance
organizations in the United States. W. G. Schanke, the
treasurer, is vice president of Schanke & Co., president
of several country banks and prominent in financial
circles. E. H. Warner, secretary and manager, has had
many years of insurance experience, was for a number
of years a local agent at Mason City and special agent
for the Columbian National Fire of Detroit. In recent
years he has acted as state agent for the London As­
surance in Iowa, Nebraska and South Dakota. He has
had a thorough insurance training and has made a good
record.
The company is unique in one other respect: It is
not attempting to trade on the name of any other com­
pany, having adopted the title of Automotive Insur­
ance Company. In the choice of a name, the officers
have been original and yet have taken a title descrip­
tive of the business in which the company will engage.
The officials of the Automotive feel that there is a
wide field for business, in the middle west. There are
now in Iowa about 400,000 automobiles, or one to every
seven persons. The proportion is nearly as large in
other states of the Mississippi valley.

l

M u sc a tin e , Io w a

BANKER

OVER HALF MILLION DEPOSITS.
A hank with a record would be a fitting name to
apply to the Farmers Trust and Savings Bank of Spen­
cer, Iowa, an institution only a little over three years
old, which already shows deposits of over a half million
dollars. Wm. Flindt is president; H. O. Green, vice
president; John Sieh, cashier and Wm. Flindt, Jr., the
assistant cashier.
NEW FINANCE COMPANY.
Ed T. Kearney, for thirty-three years a well-known
banker in Nebraska and Iowa, recently founded and
opened the doors of the Federal Finance Company on
the sixth floor of the Davidson building at Sixth and
Pierce streets, Sioux City, Iowa. Until the first of the

SIOUX CITY
IOWA
Capital and Surplus $ 600,000
W . P. MANLEY, P r e sid e n t
A. B. DARLING, V ic e P r e sid e n t
C. A. PATCH, A s s ’t C ash ier

L. R. MANLEY, C ash ier
R. E. BROWN, A ss’t C ash ier
F ou n d ed 1884


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

BANKER

year Mr. Kearney was head of the Mid-West bank at
Fourth and Pearl streets, when he aided in reorganiz­
ing it as a state bank and sold the controlling interest.
Previous to coming to Sioux City he was founder and
head of his own bank at Jackson, Neb. The Federal
Finance Company will buy and sell banks, bonds, com­
mercial paper and deal generally in investments.
D. Js CHRISTENSON RESIGNS.
D. J. Christenson, who has been cashier of the Otho
Savings Bank, Otho, Iowa, for a number of years, has
resigned from that position to accept the cashiership
of the Pilot Mound Savings Bank, Pilot Mound, Iowa.
Mr. Christenson was assistant cashier of the Farmers
State Bank of Dayton, Iowa, before going to Otho and
he brings to Pilot Mound bank some excellent business
training which will" contribute to continued success.
FORTY YEARS IN BANKING BUSINESS.
J. M. Woodrow, of Newton, Iowa, has been in the
banking business in Newton, Iowa, for forty years.
He is, perhaps, the oldest banker in the county. The
Jasper county bank was established in 1869 by Gen­
eral James Wilson and Albert Luflin, Mr. Woodrow
coming to the bank as cashier in 1880. When first es­
tablished the banking concern was known as the Jas­
per County Bank, but since February 1, 1908, it has
operated under a charter a§ a savings institution. Mr.
Woodrow, who had served since 1889 as president of
the first institution, was elected to fill that chair when
the bank was re-incorporated. Mr. Woodrow is 79
years old and, although he has practically retired from
banking business, his counsel is asked for upon many
questions that come up from time to time.
A. I. B. AT NEW ORLEANS.
Southward wends the way of bank men, as New
Orleans shakes hands with 800 delegates to the Seven­
teenth Annual Convention, A. I. B., to be held there
October 7th, 8th and 9th.
The Entertainment Committee has planned a series
of interesting events, which include a smoker for the
night before the convention; a rendez-vous at Spanish
Fort for the first night; a boat ride on the Mississippi
River, showing the great harbor, followed by an auto­
mobile tour of the city and a banquet for the second
day and evening; and a reception and dance to be held
at a fashionable club, when three of the most promiGEORGE S. PARKER, President
A. G. SAM, Vice-President
C. L. FREDRICKSEN, Asst. Cashier
F. L. EATON, Vice-President
C. D. HASKELL, Asst. Cashier
A. W. SMITH, Cashier
A. E. RUGG, Asst. Cashier

THE

L IV E ST O C K N A T I O N A L B A N K
Capital
$200,000.00

Sioux C ity, Iowa
Surplus and Profits
LO CA TE D A T TH E STO CK YARDS
$100,000.00
Deposits $6,500,000.00

The GREAT NORTHWEST being the feeding ground of the Live Stock Industry,
by virtue of our location at the MARKET PLACE of this territory, we can offer
unsurpassed RESERVE facilities for Country Bankers.


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Federal Reserve Bank of St. Louis

33

34

THE

NORTHWESTERN

N A T I O N A L
STATE BANK
......-■ - = Burlington, Iowa

-- =

“ O ld e s t B a n k in I o w a ”
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiniiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiinun

Capital

- - -

- $150,009.00

Surplus and Protits, $130,000.00
With our new organization we
are especially well qualified to
handle the accounts of banks and
bankers desiring prompt and ef­
ficient service.
Ulllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

OFFICERS:
Chas. F. Brook, Pres.
John Blaul, V. Pres.
M. C. Stelle, Cashier.
C. E . P e r k i n s
J o h n B la u l
A. T. C h u r c h ill
J . J . S e e r le y

D IR E C T O R S

J. J. F le m in g
H . S. R a n d
C h a s. F . B r o c k
W m . C a rs o n

Peoples Savings Bank
DES M OINES, IO W A
ESTABLISHED 1890

BANKER

October, 1919

nent men of New Orleans will speak, for the conclud­
ing day and evening.
The Program Committee has received definite ac­
ceptance from the following speakers at the various
sessions of the busines meetings:
J. C. Thomson, president of the American Institute
of banking, assistant cashier, Northwestern National
Bank, Minneapolis, Minn.; Gardner B. Perry, vice pres­
ident, American Institute of Banking, vice president,
National Commercial Bank, Albany, N. Y .; Rudolph
S. Hecht, member Executive Council, American Insti­
tute of Banking, president, Hibernia Bank and Trust
Co., New Orleans, La.; George E. Allen, Educational
Director, A. I. B., New York, N. Y .; J. Howard Ardrey,
vice president, National Bank of Commerce, New York,
N. Y .; Jerome Thralls, secretary, Discount Corpora­
tion, N. Y .; Freas B. Snyder, president and treasurer,
W. C. Hamilton and Sons, Philadelphia, P a.; Robert
H. Bean, executive secretary, American Acceptance
Council, New York, N. Y.
In addition to the above there is to be a symposium
on practical banking; a conference of the chapter presi­
dents; and a debate between New York and Chatta­
nooga Chapters, the probable subject being, “Resolved,
that Congress co-ordinate the Merchant Marine and
Railroads for the purpose of encouraging Foreign
Trade.”
Bank men considering making the trip are requested
to get in communication with Thomas F. Regan, Chair­
man of Publicity, A. I. B., Citizens’ Bank & Trust
Co., New Orleans, and those desirous of making hotel
reservations should write F. L. Ramos, Canal Bank &
Trust Co., New Orleans.
BIERKAMP’S HEAVY MAIL.
A. H. Bierkamp wrote an article for the September
issue of The Northwestern Banker on “Developing
Country Bank Business” and sends us his sheaf of
“belles lettres” as the result of his rashness :
Word From Grassy Butte, North Dakota.

CAPITAL (Paid in) $50,000.00
CAPITAL (Earned) 50,000.00 $ 100,000.00
SURPLUS & PROFITS (Earned) 250,000.00
DEPOSITS - - - - over 4,500,000.00

Grassy Butte, N. D., 8-11-19.
Hon. A. H. Bierkamp,
Cedar Rapids, Iowa.
Dear Hon: I just read your article in the Northwestern
Banker.
Bank of the Winds.

C. H . M A R T IN ................................................ ..................P r e s i d e n t
F R A N K P . F L Y N N ......................................................................V ic e P r e s i d e n t
E . A. S L I N I N G E R ................................................................ C a s h ie r
C A R L W . M E S M E R ..................................... A s s i s t a n t C a s h ie r
R O S C O E C. M O R R O W ...............................................A s s i s t a n t C a s h ie r
W R A Y B E R T H O L F ..................................... A s s i s t a n t C a s h ie r
Mr.
E . R . M IL L A R D ................................................................ A s s i s t a n t C a s h ie r

Accounts of Banks and Bankers Solicited

The Prize.

Des Moines, Iowa, Sept. 12th, 1919.

A. H. Bierkamp,
Cedar Rapids, Iowa.
Dear Al: I am enclosing herewith under separate cover,
a plush sofa won by you as first prize in the contest just
closed, between yourself, Mr. Kuehnle and Melvin W. Ellis.

CAPITAL AND SURPLUS, $ 7 0 0 ,0 0 0 .0 0
RESOURCES. $ 1 0 ,0 0 0 ,0 0 0 .0 0


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Federal Reserve Bank of St. Louis

THE

October, 1919

NORTHWESTERN

(You won this fairly, I saw no crooked underhanded work,
and suppose there was none.
I must say you write the nicest articles.
Yours very truly*
Klif(Ford) Dee Puh.

jj

B

T iie a c tiv e e x e c u tiv e o ffic e r s o f th e
F I R S T r e c e iv e d th e ir e a r ly tr a in in g in
C ou n try B a n k s .
T h is fa c t in s u r e s a sy m p a th e tic an d
h road k n o w le d g e o f co u n try h a n k p rob ­
le m s a n d o f th e se r v ic e w h ic h m a y h e
r e n d e r e d h y a c ity c o r r e sp o n d e n t.

Another Good One.

Agony, Pike Co., Mo., 8-11-19.
Mr. Hon. A. H. Bierkamp, Esq.,
Cedar R apids,.Iowa.
Dear Esq: I have read your article in the Northwestern
Banker and never read anything like it before. It is just as
clear as the league of nations, and about the same amount of
mud used.
'Give us another.
'First National Bank.
Good For the Ladies.

Aspin, Iowa, Sept. 11-19.
Dear Mr. Bierkamp: My wife, after reading your recipe, is
resting easy.
(New Newbrew.)
New York Heard From.

New York City, N. Y.
Mr. A. H. Bierkamp,
Cedar Rapids, Iowa.
Dear Mr. Bierkamp: Our Board of Directors, at a special
meeting in convention assembled, have just passed a vote of
thanks to you for clarifying many knotty points in financial
affairs of present date difficulties.
¡National City Bank.

DES MOINES, IOWA
g
§

E. B. W ILSO N , V ice-P resident
V. R. M A R TIN , C ashier
R. R. M onroe, Asst. C ashier

iillllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllll^

To the Point.

Peachblossom, Iowa, Sept. 11th, 1919.
Oh, Mr. A. H. Bierkamp,
Cedar Rapids, Iowa.
Friend B: How nice of you to write such wonderful ar­
ticles how to run banks. My husband has studied the article
and immediately started a bank of his own on the northeast
corner of our farm, back of the milkshed. He has been in
business now for over two days and so far nearly had a cus­
tomer. Yours,
Mary Regan.
T H IN K S He is a Doctor.

Springwell, Iowa, Sept. 11th, 1919.
Dr. A. H. Bierkamp,
Cedar Rapids, Iowa.
Dear Doc: I read your article in the Northwestern Banker,
and we all enjoyed ourselves trying to cipher it out. I have
used Peruna and Tanlac for a good many years, but after tak­
ing two doses of your treatment, I can cheerfully say that 1

IO W A

"

NATIONAL BANK,

S

DAVENPORT

IO W A TRUST &
Savings Bank
Des Moines, Iowa

RESOURCES OVER $1,350,000.00
We desire an opportunity to prove to you that this bank is
able to handle your account to your entire satisfaction.
OFFICERS
A. O. Hauge, President
John A. Benson, Vice President
L. M. Barlow, Cashier
C. B. Hextell, 2nd Vice President
Elmer Thulin, Assistant Cashier

Accounts of Banks and Bankers are Invited
on the Basis of Mutual Advantage
and Responsibility
Correspondent Banks are Assured Prompt and Satisfactory Service

hjjj

Capital, Surplus and Undivided Profits O ver $4 0 0 ,0 0 0
FRANK B. YETTER, Cashier
CHAS. SHULER, President
LOUIS G. BEIN, A sst. Cashier
W. H. GEHRMANN, Vice President
HERMAN STAAK, Asst. Cashier


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Federal Reserve Bank of St. Louis

35

Your O w n
Viewpoint

Response.

Cedar Rapids, Iowa, Sept. 12y¿, 1919.
Mr. Kalif DePew, Vice President, Midland Mortgage Co.,
Des Moines, Iowa.
Dear Mr. Vice: It is with a feeling of utter failure of
proper rhetoric on my part to properly express the deepness
of my appreciation of your kindness in sending the sofa, and
my acknowledgment of your congratulations, that I pen these
lines with an Underwood. I am too modest to believe that I
really was entitled to the .prize, although I felt right along
I had it on the other guys.
A. H. Bier (hie) kamp.

BANKER

n
jg

B

THE

36

NORTHWESTERN

BANKER

October, 1919

really believe that what you say comes the nearest to being
the real facts of anything I have ever had the pleasure to
enjoy.
For ringworm and spavin it heats anything I have used on
the old mare. My wife also used it in the place of fly-paper, it
is so entangling.
Hoping you will write more right soon.
Your truly very,
Hank Wellspring.

CENTRAL
STATE
BANK

Want Him to be Prest.

D ES M O I N E S

Capital and Surplus $500,000
BOND DEPARTMENT
W e have instituted a Bond Department and are
offering investors the First Mortgage 6% Bonds un­
derwritten by S. W . Straus & Company of Chicago
and N ew York.
The Central State Bank has sponsored the first
mortgage bonds safeguarded under the Straus Plan
because they are thoroughly secure, stable, nonfluctuating, free from the frequent changes of the
stock market, and because they yield an attractive
rate of interest—6%.
W e are purchasing these bonds for our own «ac­
count—a fact indicating the complete sincerity of
our recommendation of these bonds as a safe
investment.
SIMON CASADY, Chairman of the Board
GRANT M cPHERRIN, Pres.
JOHN B. McDOUGAL, Vice Pres
LELAND WINDSOR, Cashier
FRANK C. ASH, Ass’t Cashier
JOHN W. HAWK Ass’t Cashier

Eldridge Savings Bank
ELDRIDGE, IOWA.

Statement.
Call of Supt. of Banking, May 12th, 1919.
Capital, Surplus and Undivided
Profits........................................... $ 68,870.76
Deposits............................................. 881,396.74
Send us your items for collection.
M. H. CALDERWOOD, President
AUG. H. LAMP, Vice President
WALTER LUCHT. Cashie

■Chicago, 111.! Sept. 12th, 1919.
Mr. A. H. Bierkamp,
Cedar Rapids, Iowa.
Greetings: We have called a special meeting of our stock­
holders to permit incorporation* in our by-laws, verbatim,
your magnificent article ‘ON HOW TO RUN A BANK’. We
have also formed a political club called ‘BIERKAMP FOR
PRESIDENT’. Now, won’t you please be president.
Continental & Com. Nat. Bank
(Note by the author.) I don’t want to be President.

I. B. A. FIGHT BLUE SKY TRAFFIC.
Frank Warner, secretary of the Iowa Bankers Asso­
ciation, is supplying the member banks with a fourpage leaflet, which we give in part as follows :
Are; You Buying “Blue Sky” Corporation Stock?
You say you do not know; that you do not be­
lieve you are. Isn’t it right to you and your family
that you should know? Does the money come so
easy these days that you can afford to buy “stock”
sold by the “suave tongue” of some “smooth” stock
salesman, giving alluring promises of big returns, and
you make no investigation to be sure of the purposes
for which the new company is started; the kind of men
behind it; the amount allowed for promoting such
company ; or the amount of commission you donate to
the “smooth” salesman for permitting you to be among
“the few people of influence” who are being “let in on
the wonderful new enterprise” ?
So much sorrow, regret and financial loss, and even
ruin, has come from investing in some new scheme or
unknown companies that you should be on your guard.
These particular times require every vigilance in avoid­
ing investing in some illegitimate and “wildcat” propo­
sition.
This bank is always at your service to assist you in
finding proper investments. Do not hand over to some
stranger your money or Liberty Bonds for which you
have worked hard to save or to pay for without know­
ing that you are going to get real value and a safe in­
vestment in return.
The bankers of Iowa have adopted the following
resolution in which this bank has joined, to help pro­
tect their customers and to aid in stamping out illegiti-

PE O P L E S T R U ST & SA V IN G S BA NK
E s t a b lis h e d 1893

CLINTON, IO W A
CAPITAL, $300,000.00
—
SURPLUS, ALL EARNED, $300,000.00
—
DEPOSITS, $3,800,000.00
Offers the facilities and services of a live, up-to-date banking house, fully equipped and
amply capitalized to handle intelligently and efficiently every branch of legitimate banking.

CO M M ER C IA L—S A V IN G S — S A F E D E P O S I T -T R U S T
A ccoun ts from banks in its territory, and collection s receiv e the special
attention of an officer of the bank

C. F. ALDEN
P r e sid e n t


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Federal Reserve Bank of St. Louis

W . W . COOK
G. E. LAMB
J . L. BOHNSON
V ice P r e sid e n t
V ice P r e sid e n t
C ash ier
C. S . HARRIS an d W . S . GARDNER, A ssista n t C a sh iers

October, 1919

DES^MOINES

CAPITALISURPLUS
PROFITS <2 ,000 .000.
8c

Carry Your Des Moines Account
with us and enjoy the advantage of
our complete facilities. Keep your
money in Iowa and aid her finan­
cial progress.
Combined Capital and Surplus.:_________ ____ $ 2,800,000
Combined Deposits Over____ ________________$25,000,000

Iowa National Bank
Des Moines Savings Bank
“Iowa’s Largest Bank”
Entire Second Floor Fleming Building-—Des Moines


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Federal Reserve Bank of St. Louis

THE

38

NORTHWESTERN

i^l!ll!llllllll!llllllllllllllllllllllll!lll!llllllllll!l!ll!l!l!lllilf
ü

=

I American Commercial g
i and Savings Bank |
of D avenport, Iow a
I
S
ü
Ü

B
H

C a p ita l s to c k ............................................................$
600,000.00
S u rp lu s ........................................................................
600,000.00
U n d iv id e d p ro fits ...................................................
400,000.00
D e p o s its o v e r ......................................................... 12,200,000.00

|
=
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OFFICERS

|

ED. KAUPMANN,
P resid en t
RAY NYEMASTER, V ice Pres, and Cash.
p . c. KROEGER, A ssista n t C ashier
P. A. JOHNSON, A ssista n t Cashier

1
B
H
=

S
Our adequate equipment and exceptional facilities for j§
I , handling business
in every departmentofbanking are at
H your service.
M

J. K. D E M IN G
P re sid en t

JA M ES M. B U R C H
V ice-P resident

H ERM A N N ESCH EN
C ashier

THE

SE C O N D N A T IO N A L B A N K
AND

D U B U Q U E S A V IN G S B A N K
D U B U Q U E , IO W A
O R G A N IZ E D

18 76

mate schemes and in driving out of this state the
“suave tongued professional salesman” of “wildcat”
propositions. If you do not buy from him he will have
to seek other fields or go into legitimate work. Help
drive such men and concerns they represent out of
Iowa as other states are driving them from their bor­
ders :
The Resolution
“Believing that legitimate business will readily com­
mand capital, that the demand for private enterprise
will be readily apparent.
“1. WE most strongly condemn the methods en­
gaged in by many in starting new corporations or es­
tablishing business largely for the promotion of sala­
ries, exorbitant commissions, and in most cases involv­
ing the commission of fraud.
“2. WE condemn the practice of any banker of
Iowa in receiving any compensation or inducement for
his influence in promoting such concerns.
“3. AND the members of this Association put
themselves on record as promising not to carry, buy,
purchase stock, or approve a business that is estab­
lished for the purposes herein first mentioned. We
announce it as our declared purpose to refuse to finance
any enterprise of the designated nature.”
Adopted by the Iowa Bankers in Convention assem­
bled at Fort Dodge, June 25, 1919.
JOHN M. CALLANDER DIES.
John M. Callander was stricken with heart failure
while sitting on the porch of his home in Des Moines
f§recently. He was vice president of the Bankers Mort­
gage Company, vice president of the Des Moines Life
and Annuity Company, director of the Iowa Loan and
Trust Company board, vice president of the Halpenny
Auto Company and a member of the Greater Des
Moines Committee, Des Moines.
IOWA NEWS AND NOTES.
W. E. Craft is soon to retire from the Fremont
County Savings Bank, Sidney, Iowa, and the family
will move to Yakima. Wash., where Mr. Craft expects
to go into the fruit business.
George L. Bower, president of the Security State
Bank at Rockwell City, Iowa, who recently sold his
bank building, has purchased a $40,000 home at At­
lanta, Ga., where his daughter lives and is planning to
move there.
At a meeting of the board of directors of the Eldridge Savings Bank, Eldridge, Iowa, held recently, it
was voted to increase the capital stock from $25,000

WATERLOO BANK

H E R M A N N ESC H EN
C ashier
J. T . C A R R
S ecy-T reas. C arr, R y d e r &
A dam s C o.
G E O . W . K IESEL
H u rd , L en eh an & Kiesel
J. J. R O S H E K
R o s h fk B ros. C o.

Reserve Agents for National Banks
United States Depositary
Combined Resources - - $3,000,000.00


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Federal Reserve Bank of St. Louis

&

TRUST CO.

WATERLOO, IOWA

OFFICERS A N D D IRECTORS
J. K. D E M IN G
P re sid en t
JA M E S M. B U R C H
V. P. F arley & L o e tsc h e r
Miff. C o.
CH A S. H . B R A D L E Y
B radley B ros.
F R A N K BELL
C apitalist

October, 1919

BANKER

C a p ita l an d S u rp lu s $250,000.00
M em b er o f F e d e r a l R e s e r v e S y s te m

BEN J. HOWREY, President
E. H. WYANT, Secretary
H. M. HOWREY, A sst Cashier
D. S. RAVAGE, A sst Cashier
A. K. SMITH. A sst Cashier

W e so licit accou nts of ban ks and g iv e sp ecial a s s is t­
ance in floatin g farm loans. W rite us about our plan.
DEPARTM ENTS

Com m ercial B an k in g

savings ♦

F arm M ortgages
City M ortgages
S a fety D eposit
R e a l E sta te
Insurance

_ _ _ T_

ECURITY

_

^ S A T IS F A C T IO N

W J ER VICE

THE

October, 1919

NORTHWESTERN

to $50,000. M. H. Calderwood, is president; Aug. H.
Lamp, vice president and Walter Lucht, cashier.
Construction has been started on the new building
of the First National Bank at Vialley Junction, Iowa.
The Peoples National Bank of Waukon, Iowa, have
contracted with a Dubuque firm for the erection of a
magnificient new bank building.
Charles Birdsall, late of the American ExpeditionaryForces and formerly assistant cashier of the Bank of
Clarion, Iowa, will become the cashier and manager
of the State Savings Bank at Galt, Iowa. Since the
resignation of John Axen, W. H. Trowbridge, of Cla­
rion has had charge of the institution.
Carl Sterner has accepted the position of cashier
of the Swedesburg Bank, Swedesburg, Iowa.
Edward Brus,’president of the Blue Grass Savings
Bank, Blue Grass, Iowa, was killed and Otto Barthel,
cashier of the bank was seriously injured when the
automobile in which they were driving home was hit
by an interurban car.
The annual meeting of the Fayette County Bankers
Association met recently at the Hotel Commercial in
West Union, Iowa.
The directors of the Ringsted State Bank, Ringsted,
Iowa, met recently to look over plans for their pro­
posed new bank building..
Ex-County Treasurer D. B. McClure resigned his
position as cashier in the Bank of Scranton, Iowa, re­
cently and has sold his bank stock to Messrs W. W.
Anderson and J. W. Holden. The deal came as a great
surprise to the Scranton public and was received with
much regret. Mir. McClure has been connected with
the Bank of Scranton in an official capacity for about
twelve years.
Alva Chapman, assistant cashier of the First Na­
tional Bank of Lawler, Iowa, was killed at Mason City.
He was riding in an auto when it skidded on the pave­
ment and he was thrown against a telephone pole.
A bronze plate in honor of those employes who
served in the war, was placed in Central State Bank
Des Moines, recently. The plate contains fourteen
names, including the following who are with the bank
at the present time: John B. McDougal, B. C. Barker,
Carl DeVries, Ralph Faltonsen, Ernest Quiner and
F. R. Warden.
Charles Von Schrader, president of the First Na­
tional Bank of Maquoketa, Iowa, died at his home in
Maquoketa recently.

The State Central Savings Bank

39

BANKER

WEBSTER COUNTY
NATIONAL BANK
F O R T D O D G E , IO W A
CAPITAL $250,000.00
W e se rv e th e N o rth w e ste rn Io w a T e rrito ry
—3 % o n B ank Balances.

W EBSTER C O U N T Y
T R U S T & S A V IN G S B A N K
CAPITAL AND SURPLUS $60,000.00

Iowa Farm Loans Negotiated
Officers and Directors:
Jo h n B. B utler, P r e s id e n t
D a n G. Stiles, V ic e - P r e s id e n t
O. M . T hatch er, V ic e - P r e s .
M . F . H ealy, V ic e - P r e s .
J . L . H an rah an , C a sh ie r
H en ry M . W asem
Louis C haron
D r. J . F . S tu d eb ak er
C harles A. B row n
F . H . Helsell
C harles H . M a rtin

GUY WOODS, Photographer
211 Iowa Bldg., Des Moines, Iowa

PORTRAITS, MINIATURES, COMMERCIAL
Long Distance Phone Walnut 4216

APPOINTM ENTS

COMMERCIAL
National Bank
W aterloo

Iowa

Capital and Surplus
One-Half Million Dollars

Keokuk, Iow a

Capital ................................................ $ 200,000
Surplus ................................................ 200,000
Undivided p rofits.............................
60,000
Deposits .............................................. 2,900,000
WM. LOGAN. P re sid e n t
CEORGE E. RIX
L. J. MONTGOMERY
V ic e P r e s id e n t

V ic e P r e s id e n t

C. J. BODE

H. T. GRAHAM

C a sh ier

A sst. C a sh ier

H. BOYD
A s s t. C ash ier

A cco u n ts o f B a n k s a n d B a n k e r s In v ited


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Federal Reserve Bank of St. Louis

OFFICERS

E. W. MILLER, President.
F. C. PLATT, Vice Pres.
H. C. SCHULTZ, Cashier.
H. W. WENTE, Asst. Cashier.
The high standard this hank has set for itself in the
conduct of its business is a protection to its corre­
spondents in every emergency and under all circum­
stances.

40

THE

NORTHWESTERN

Waterloo Savings Bank
WATERLOO, IOWA.

CAPITAL........................................$ 100,000.00
SURPLUS AND PROFITS........ 100,000.00
D E PO SIT S.................................... 1,950,000.00
This Strong Bank Offers Every
Facility for Satisfactorily
Handling Your Business.
O F F IC E R S
W . C . liogran, P r e s id e n t
E . L . Jo h n son , V ic e P r e s .
J. J . M ille r . C a s h ie r
C a r le to n S la s. V ic e P r e s .
V . L . B a r tlin g '. A s s t . C a sh .

THE

M ER C H AN TS
NATIONAL BANK
CEDAR R A PID S, IO W A

Resources $16,000,000.00

OFFICERS
JOHN T . HAMILTON. Chairman
J. M. D IN W ID D IE , President
EDW IN H. FURROW, Cashier
JAMES E. HAM ILTON. V. P.
H. N. BOYSON, Asst. Cashier
P. C. FRICK . V. P.
ROY C. FOLSOM. Asst. Cashier
ROBERT PALM ER. V. P.
MARK J. MYERS. Asst. Cashier
ROBERT S. SINCLAIR, V. P .
FR E D A . GROELTZ, Asst. Cashier

A live institution offering superior equipment
and facilities for the handling of bank accounts.

S I
PaŒrï
biggs!
it■•
BlilIflÉf
femPRiRPiRPi;

63rd Year


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Federal Reserve Bank of St. Louis

BANKER

October, 1919

Ralph R. Bru'bacher has been named cashier of the
National Bank of Commerce at Sioux City, Iowa.
The newly organized Security Savings Bank, Hart­
ley, Iowa, expects to open for business Oct. 1st. Wil­
liam Briggs is president.
After forty-three years of continual banking, B. A.
Plummer has disposed of his interest in the First Na­
tional Bank, Britt, Iowa. The bulk of his stock was
taken over by K. J. Johnson, president of the Farmers
National Bank of Osage, Iowa, A. H. Gale, of the City
National Bank of Mason City, E. H. Rich, of Fort
Dodge and John Olson, the present cashier of the bank.
R. A. Plummer succeeds his father as president of the
bank.
Charter was issued by the state superintendent of
banking to the St. Mary’s State Batik of St. Mary’s,
Iowa, r. d. from Wick. Theodore H. Luke is president
of the bank and E. L. Nine is cashier. The capital
stock is placed at $25,000.
Charter was issued recently to the Peoples State
Bank of Corwith, Iowa. George W. Scovell is presi­
dent of the new institution and E. T. Hauptmann,
cashier. The capital stock is placed at $30,000.
A. J. Beckley has disposed of his interest in the
State Savings Bank, Dedham, Iowa, and will be suc­
ceeded by Reid McMurray, of Oskaloosa, Iowa.
Walter Mangold has been elected assistant cashier
of the State Bank of Ringsted, Iowa. He has been
assisting in the tank since he received his discharge
from the army last spring.
Harry O’Grady has succeeded his father as cashier
of the Citizens Savings Bank at Ayrshire, Iowa.
The Citizens Trust & Savings Bank of Davenport,
Iowa, has secured a lease on the first floor of the Lane
building at the southeast corner of Third and Main
streets and officials of the bank state that they will
remodel the building so that they will have one of the
finest and most modern banks in the city.
The Monticello State Bank, Monticello, Iowa, is
erecting a temporary building on the east side of its
bank building, which it will occupy during the chang­
ing of the interior of its banking rooms. The bank
anticipates spending $20,000 on the new improvements.
Carroll, Iowa, has a two-million-dollar bank. State
examiners recently went through the affairs of the Carroll County State Bank and report its deposits as hav­
ing passed the $2,000,000 mark.

Leavitt & Johnson National Bank
W a te rlo o , Io w a

E s ta b lis h e d 1856
IRA RODAMAR, President
C. E. PICKETT, Vice President
J. O. TRUMBAUER, Vice Pres.
FRED H. WRAY, Cashier

Capital, Surplus and Profits $300,000.00

THE

October, 1919

NORTHWESTERN

BANKER

41

John Hepperle was recently appointed assistant
cashier of the First Savings Bank, Reinbeck, Iowa.
The Calumet State Bank, Calumet, Iowa, has let
the contract for a $20,000 bank building to be erected
soon. ■
Fred Kretschmar, for a number of months an .em­
ployee of the Muscatine State Bank, Muscatine, Iowa,
has accepted the position of assistant cashier in the
Pleasant Prairie Savings Bank, Pleasant Prairie, Iowa.
Frank Mclntire, president of the South Ottumwa
Savings Bank; vice president of the Ottumwa Savings
Bank, Ottumwa, Iowa, died recently of apoplexy.
MILLIONS OF NEW U. S. INVESTORS.
(Continued from page 8.)
dividends and, in my judgment, it will never give you
any worry over the safety of your money.
I am recommending it to all my friends,
Yours very truly,
WM. J. BARKER,
Vice President and General Manager.
The letter was also run in the advertising columns
of the newspapers in generous space alongside of an
orthodox financial advertisement setting forth the
usual particulars of a new offering.
This letter brought genuine prospective investors
into the office in such numbers that for about three
weeks it was not necessary to seek any by personal
solicitation. On one day the purchasers who called in
response to this advertisement paid nearly $35,000 in
gold coin in making their settlements!
Following the activities produced by this means, a
definite plan of personal solicitation was pursued which
extended to approximately 5,000 interviews. New
stockholders of the company were acquired in that
city as a result of this campaign to the extent of about
500, of which more than half had never before owned
securities in any corporation. Hundreds of others be­
came interested also in the securities of the holding
company, Cities Service Company, as a result of con­
tinued sales efforts on all the security issues of the
organization.
It is scarcely necessary to analyze the reasons for
the pulling power of the foreging “copy” except to
remark upon how different it is from the customary
form of financial advertisement and to remind you
that of course it alone would not have closed many
sales without cordial and effective personal receptions
to visitors at the office whose interest was stimulated
by the letter.

MERCHANTS
"

i

"

...

NATIONAL

B UR LING TO N ,

BANK

m w A ------

-------

Capital, Surplus and Profits
$ 204,114.51
D e p o s i t s .......................................... $1,804,478.51

1 J. L. EDWARDS, President
JAMES MOIR, Vice-President
ALEX MOIR, Vice-President
G. S. TRACY, Vice-President
F. L. HOUKE, Vice-President
C. L. FULTON, Vice-President
E, W. WICHHART, Cashier
C. A. DANIELS, Ass’t Cashier
A. A. WILLEM, Ass’t Cashier
DIRECTORS: James Moir, G. S. Tracy, W. C. Tubbs, Alex. Moir, J. L. Waite, J. L. Edwards.

WE INVITE YOUR BANKING BUSINESS


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Federal Reserve Bank of St. Louis

THE

42

ESTABLISHED 1872

NORTHWESTERN

R. A. CRAWFORD
President
C. T. COLE. JR.
Vice-President
D. S. CHAMBERLAIN
Vice-President
W. E. BARRETT
Cashier

New
and
Modern
Home
of the

VALLEY NATIONAL BANK
and

VALLEY SAVINGS BANK
DES MOINES, IOWA
C om bined C a p ita l a n d S u r p lu s, $875,000.00
A n xiou s to serve, Equipped to serve w e ll—
W e seek the opportunity.

One of Iowa's Largest and Most Modern Fireproof Hotels

T h e I o w a S ta t e B a n k e r s C o n v e n tio n o f 1919 to b e h e l d a t
F ort D o d g e h a s d e c id e d o n .

W AHKONSA HOTEL
a s h e a d q u a r t e r s . It is ~ a ls o t h e B a n k e r s h e a d q u a r te r s a t
a l l t im e s .
H a v e l y o u r m a i l s e n t t o t h e W a h k o n s a an d
w r it e o r w ir e r e s e r v a tio n s .

r

Fir

N

st

BANKER

October, 1919

The more usual type of financial advertisement—the
formal announcement of a new issue for instance—is
nearly valueless, according to our observation, except
as a public notice to professional investors who are
actually seeking securities of about the character of
the.new offering. In any effort to reach men who do
not habitually speak the language of investment bank­
ers an advertisement must say something that a sales­
man would say.
To the average man, including many who buy se­
curities regularly, the customary advertisement of a
syndicate when bringing out an issue, is no more in­
spiring than an epitaph. Most people would be just
about as much interested if you were to substitute the
dates of birth and death of someone for the “dated”
and “due” in one of these cold financial advertisements;
in place of the “authorized issue” state the number of
the decedent’s original children, and put down the
number now living as the “outstanding amount” ; name
the minister who buried him in place of the lawyers
who passed upon the legalities; use all sizes and kinds
of type to keep the legibility close to that of a tomb­
stone; state that the body is buried here instead of
“recommending the issue as a permanent investment” ;
and finally, down at the bottom, cross out the safety
clause about having obtained the data from reliable
sources but not being responsible for its accuracy, and
substitute the equally good phrase for advertising
purposes “Rest in Peace.”
Selling corporation securities to new investors is
not only of direct advantage to all corporations by dis­
tributing friends of big business all over the land, but
a valuable service is performed for the individual in
teaching him to become an investor.
We have observed that there are a great many people
who gladly listen to a discussion of investments and
who regard the proposition as an opportunity to them­
selves to learn how to solve the universal problem of
getting ahead—call it thrift if you prefer the word—
which exists in a greater degree than one might believe
until he had examined the facts at first hand.
STANDARDIZING THE ADVERTISING
PROGRAM.
(Continued from page 6.)
petitors and the completeness of my own failure would
soon educate me.
Most of us are interested, I believe, in direct adver­
tising, for that gives us a greater opportunity to use our
ideas and reach toward our ideals. It is in its direct
advertising that a bank’s personality manifests itself

B

a t io n a l

a n k

C O U N C IL BLUFFS, IO W A

Assets Over

-

-

-

-

J. P . GREENSHIELDS, President
ROY MAXFIELD, Asst. Cashier

L


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Federal Reserve Bank of St. Louis

$5,000,000.00
E. A. WICKHAM, Vice President

G. F. SPOONER, Cashier

More than half a century of successful banking

J. S. WATSON, Asst. Cashier

-J

October, 1919

THE

NORTHWESTERN

the most, and, after all, it is personality that holds
old friends and gains new ones.
If direct advertising is to be productive,we must have
standardization of our ideas. We must standardize the
character and quality of our literature. By this I do
not mean a unity of size in booklets issued, or a same­
ness in the color of covers or binding; or a sameness in
the style of type. Rather in this connection I favor an
opposite course. No one really likes one color to the
exclusion of every other color. No one was ever in­
tended to—else all girls would have red hair. Some
people like one style, some like another; if your litera­
ture is varied pleasantly enough, it will ultimately meet
the approval of all who receive it.
The adopting of a direct advertising campaign gives
an opportunity to a financial institution to not only gain
for itself wide publicity, but to render a real service
and, if properly handled, an invaluable service.
It is trite to say that service is a bank’s stock in
trade. To assemble and safeguard capital and make it
of material good through its extension in trade and in­
dustry in the form of credit—that is the function of
every financial institution in America today. But, as
the advertising manager must see it, it is even more
than that. There is an opportunity for leadership, and
a responsibility, that in these wonderful days through
which we are living must burn into our minds and make
us realize that, after all there is a bigger duty before us
than merely extending credit, thinking of catchy lines
to attract the public, and selecting type styles to set
our advertisements off.
There is loose over the entire world at this moment a
spirit of unrest that is more disturbing than any which
has been known before. The war has left the world in
such a condition that society is being formed all over
again. Old relations are no longer recognized. New
relations, some righteous, others intolerable, are striv­
ing for a place in the world. We cannot wonder at
this. The great war was literally world embracing; it
strained the very fabric of civilization and in some
places resulted in chaos. Whole nations emerged ex­
hausted and weak, Empires and dynasties were over­
thrown. Literally millions of people emerged from the
war lacking food and other materials necessary for their
well-being, and lacking as well the available capital to
command them.
Is it then, to be wondered that social and political dis­
order has swept over people ? In the United States we
have felt the reaction from the war, although not to the
degree that the distressed nations of Europe have felt it.

BANKER

Your Account
Invited
If you would like an ef­
ficient connection in Des
Moines it will be a privi­
lege to place the service
of this bank at your dis­
posal.
Correspondence f r o m
Iowa banks and bankers
receives the personal at­
tention of interested offi­
cers.

O F F IC E R S

The well-known stan­
dards of service main­
tained by the Mechanics
Savings Bank are con­
stantly drawing new ac­
counts to us from the
banks and bankers of
Iowa.

G. E . M a c K in n o n
P re s id e n t
H . F . G ro s s
V ic e P r e s i d e n t
G eo. L . R o w e
C a s h ie r
N. B. S c o le s
A s s t. C a s h ie r
H a r p e r G o rd o n
A s s t. C a s h ie r

Increased facilities are added as required, so that every
account is given close attention.

Mechanics Savings Bank
o£ D es M oines
O. G O DSH ALL
DENTIST
6 1 5 W A L N U T ST.

D E S M O I N E S , IO W A

O P P O S IT E HARRIS-EM ERY CO.

H IG H C L A S S S E R V I C E

BE A N O T A R Y
We m ake Notarial Seals for either
desk or pocket use. Also seals for
th e Corporation. Ask for circular.

F. P. Hollar & Son
Sioux City, Iowa

THE FIRST NATIONAL
BANK OF WATERLOO
WATERLOO, IOWA
Chartered 1865
For over fifty years this bank has successfully served this community. We offer the same service to those outside
our immediate locality. Special attention given to accounts of banks
Total resources over $3,000,000
F . J. E IQ H M E Y , President
A. M . P L A C E , Vice President

-O F FIC E R S . F . J . F O W L E R , Chairman
JA M E S B L A C K , vice President

V . J. W IL S O N , Assistant Cashier
P . W . E iG H M E Y , Assistant Cashier

--------------D IR E C O R S --------F . J. F O W L E R
Vice Pres, of the Fowler Co., Wholesale Grocers
J. W . R A T H
President of the Rath Packing Co.
A. HI. P L A C E
Vice President
C. F . F O W L E R
President of the Fowler Co., Wholesale Grocers


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Federal Reserve Bank of St. Louis

H. W . G R O U T
Capitalist
W . W . M ARSH
President Iowa Dairy Separator Co.
President Associated M anufacturing Co.
JA M E S B L A C K
President of the James Black Drygoods Co.

T . W . PLACE
Capitalist
J. T . 8 U L L IV A N
j. oTtr u m b a u e r
Vice President Farmers Loan and Trust Oo.
F . J. E IQ H M E Y
President

44

THE

NORTHWESTERN

YOUR LOGICAL
DES MOINES
CONNECTION
The high standard this bank has set for
itself in the conduct of its business is a
protection to its correspondents in every
emergency and under all circumstances.
We offer a bank large enough to inspire
the confidence of its customers, but not
too large to give every consideration to
the interests of every correspondent.

DES MOINES
NATI ONAL

BANK

DES MOINES, IOWA
Capital and Surplus
$900,000.00
Resources Over $13,000,000.00
ARTHUR REYNOLDS, Pres.
JOHN A. CAVANAGH, Vice Pres.
H. R. HOWELL, Vice Pres.
JOHN H. HOGAN, Cashier
C. A. DIEHL, Asst. Cashier
GEORGE C. WILLIAMS, Asst. Cashier
OTIS L. JONES, Asst. Cashier
A. J. HUGLIN, Asst. Cashier
R. H. COLLINS, Asst. Cashier
H. L. HORTON, Asst. Cashier

BANKER

But there is unrest all about u s; we sense it wherever
we go. The soap-box Bolshevist recognizes this unrest
and plays upon it with his crack-brained, evil theories.
The streetcorner socialist recognizes it, and plays upon
it with his whining cry that all of us be dragged down
to his paltry level. The demagogue recognizes it, and
plays upon it with his arrogant demand that capital get
out of his way and that the whole system of production
be exploited for the class he claims to represent. The
politician recognizes it, and plays upon it with his sick­
ening nostrums and false, lying promises of a remedy
that will make over the whole social system and give
mankind a paradise on earth.
Do you not see, in the face of all this, the obligation
that is placed upon you and me, right now, to place our
backs together in defense of the standards that have
been built up by American ideals and business thought?
Do not misunderstand me—I am not thinking for the
moment of the dollars we are spending to advertise our
individual banks’ facilities and get new accounts. I
am thinking of something bigger than that. We need
to save the standards of America. If we save them, let
me assure you, the new bank accounts will come in the
proper course.
The need to challenge the outlandish craze for so­
cializing everything and the need to tell the men and
women of America what honest business stands for is
pressing. Our country is no international boarding
house where every theory of government that is now
distracting Europe is to be tried out. It is no Bolshevist
brothel where disorder and ruin are to be nurtured.
Nor is it an experimental station where every ridiculous
theory of business control that flies in the face of Ameri-

Mr. Banker—
You Know
T h a t young p eo p le n eed a th o ro u g h business
tra in in g in o rd e r to succeed in business. Y ou
also know th a t it pays to get th is tra in in g in
th e b est e q u ip p e d an d m ost th o ro u g h business
tra in in g school available. W e in v ite y o u r m ost
carefu l inv estig atio n of o u r w ork. W rite any
b a n k e r of W aterlo o or F t. D odge or C lifford
D eP uy, p u b lish e r of th e N o rth w estern B anker.
T h e n urg e y o u r p a tro n s to send th e ir boys and
girls to us fo r a th o ro u g h course in business
and h anking.

Gales’ Waterloo Business College
Waterloo, Iowa

Gates’ Fort Dodge Business College
Fort Dodge, Iowa


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Federal Reserve Bank of St. Louis

October, 1919

October, 1919

THE

NORTHWESTERN

can tradition and custom is to be exploited. No, our
country comprises a nation of more than 100,000,000
people who honestly want to stand by one another in
living clean, decent lives, raising themselves to a level a
little higher than the generation before, giving a
chance to the generation that is to come to start a little
better, and incidentally lending a hand to raise their
more unfortunate fellows in the Old World, who just
now are struggling to their knees from the prostration
of a great war, brutally imposed.
It is to keep the contamination of false theories from
these 100,000,000 people in which lies the greatest duty
today of the advertising departments of America’s
banks, trust companies and financial institutions. We
must preach all the time, every day and every hour, in
the literature we put out, common, hard-headed, loyal
American sense. The steps that led our nation into
the war were plainly defined; the steps that will lead us
out into the broad daylight of prosperity and world
leadership have still to be positively defined. That is
where, gentlemen, you who are giving expression to the
nation’s banking thought can utilize your position di­
rectly to the immeasurable benefit of the United States.
And if you do this, do you not see what it will mean to
your institutions ?
Of course I do not say that every bank and trust com­
pany in the United States shall replace its copy which
tells of its service with copy that cries aloud against
Bolshevism, I. W. W.ism, socialism, the throttling of in­
dustry, the elevation of labor and the rending asunder
of capital. But I do say that every bank and trust
company, in its advertising campaign, can do its share
to guide the people in the way of right thinking, and I
am willing to stake my reputation on this statement: If
such a form of service as I have outlined is rightly con­
ducted—and what form of service is higher than to
guide men and women in the way of right thinking?—
it will give your institution a prestige in the community
that will draw business to it as surely as vapor is drawn
toward the sun.
The standardization an advertising program, then, is
the standardization of our idea of what we are after,
and a definite, systematic plan designed to cover proper­
ly all phases of the work, reaching up to a certain ideal.
Rightly inaugurated and carried through such standard­
ization must pay dividends. The publicity and new
business department properly standardized is an artery
through which flows new, vivifying life blood into the
bank that enables it to grow and prosper with the years.

45

BANKER

We invite the business of

BANKS, BANKERS AND
MERCHANTS
D esiring prom pt, Efficient
and Satisfactory Service on
Favorable T e ms.
CAPITAL AND PROFITS, $330,000.00
C. F. FRANKE,
Vice P resident
W. A. WESTFALL
S ecretary

E. V. FRANKE,
P re sid en t
GEO. A. ROMEY,
C ashier

The Citizens National Bank
Spencer, Iow a

C A P IT A L $ 1 0 0 ,0 0 0 .0 0
A c co u n ts of B an k s an d In d iv id u a ls S o lic ited
FRANKLIN FLOETE, P res.
J . H . McCORD, V ice-Pres.
P. R. GRAHAM, C ashier

W hen y o u th in k S p en cer, th in k C itizen s
N a tio n a l

O P E N -A L L-Y E A R
Tfotel (Tolfax
T h e Ideal B an k ers R est R esort
MINERAL SPRINGS and BATHS

European Plan— R ates $1.50 per Day Up
Cafe Meals A la Carte or Table D’hote
at Sensible Prices.
WRITE FOR BOOKLET AND INFORMATION
JAMES P. DONAHUE, Prop.

T'Cotel (Lolfax
COLFAX,


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Federal Reserve Bank of St. Louis

:

:

:

:

IOWA

46

THE

NORTHWESTERN

BANKER

October, 1919

NEBRASKA BANK NEWS
W. P. HATTEN SELLS INTEREST.
W. P. Hatten has sold his interest in the Fullerton
National Bank, Fullerton, Neb., to A. G. Arrasmith,
of Griswold, Iowa. Mr. Hatten has filled a position in
the bank for twenty-one years and has built up a strong
bond of friendship with patrons by his courteous treat­
ment at all times. Mr. Arrasmith, who has been con­
nected with the Griswold National Bank, at Griswold.
Iowa, for the past twenty years, comes to Fullerton
with splendid recommendations.
WILL ENLARGE QUARTERS.
At a meeting of the directors of the Platte Valley
State Bank, North Platte, Neb., it was decided, to en­
large their present quarters. The business growth of
the bank has teen such as to make additional working
room an imperative necessity, as the volume of busi­
ness could not be longer handled.
OMAHA BANK LEADS.
The Federal Land Bank of Omaha, comprising the
district of South Dakota, Iowa, Nebraska and Wyom­
ing, leads all the land banks in the United States in the
amount of farm loans placed up to date. The total is
$34,271,790. Spokane is second with about $32,000,000.
The total loans of all twelve banks exceed $235,000,000
placed with about 92,000 farmers.
RESIGNS POSITION.
Glen Etter has resigned his position with the First
State Bank of Bazile Mills, Neb., and with his wife
left recently for Burlington, Colorado, where he will as­
sociate himself with the First National Bank of that
place, being identified with the institution as cashier.
E. Hans, of Battle Creek, Neb., will fill the position
made vacant by Mr. Etter.
PURCHASES INTEREST.
J. F. Krenz, of St. Paul, Minn., .has purchased the
interest of Fred Wright in the Citizens State Bank of
Virginia, Neb., and is now in possession assuming the
position of cashier. Mr. Wright is well known in Gage
county banking circles, having engaged in the same

business at Cortland before assuming control of the
Virginia bank.
SEVERS CONNECTION WITH BANK.
J. F. Hansen has severed his connection with the
Farmers State Bank, North Loup, Neb., and as soon
as arrangements can be completed will move to Santa
Barbara, Cal., to become associated with E. A. John­
son and C. E. Wellman.
BUYS HOME IN FORDYCE.
F. A. Leise, who was recently elected cashier of the
Fordyce State Bank, Fordyce, Neb., has purchased the
large residence there owned by Peter Becker. Mr.
Leise plans on occupying the place shortly.
PURCHASE CONTROLLING INTEREST.
E. R. Henrichs, of Gilead, and E. L. Loock, of Diller,
Neb., have purchased the controlling interest in the
Deshler State Bank, Deshler, Neb. Mr. Henrichs re­
sides in Gilead and has a controlling interest in the
bank at that place. Mr. Loock is a pioneer citizen of
Diller with extensive banking and property interests in
Jefferson and Thayer counties.
CITIZENS STATE ROBBED.
The Citizens State Bank of Ralston, Neb., was
robbed recently of about $4,000, all cash, no bonds.
The Nebraska bankers will pay $250 reward for appre­
hension and conviction of these men.
DEVELOPMENT OF COUNTY IN NEBRASKA.
Cheyenne county’s vast wealth and rapid develop­
ment is eloquently testified to by its fifteen firmly es­
tablished banking institutions, capitalized at $380,000
and holding in deposits, according to the latest state­
ments issued, $3,299,418.21.
The rapid growth can only be understood, if one
turns back to 1900, when there were only three banks in
the entire county. The American Bank and the Bank of
Nebraska at Sidney with deposits totaling $58,489.64,
according to the July statements of that year, and

*The M erchants N ational Bank
o f OMA Hf A ,

CAPITAL---------------------------$1,000,000.00
UNDIVIDED P R O F IT S --— $223,422.30
L U T H E R D R A K E , P re sid en t
B. H . M E IL E , C ashier

ACCOUNTS


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Federal Reserve Bank of St. Louis

NEBRASKA

SURPLUS________
$500,000.00
DEPOSITS-_____ ______— .$13,449,878.47

OFFICERS
P R A N K T . H A M IL T O N , V ice-P resident
S. S. K E N T , A ssistan t C ashier

SOLICITED

\

F R E D P . H A M IL T O N , V ice-P resident
p . A. C U S C A D E N , A ssista n t C ash ier

U.

S.

DEPOSITORY

October, 1919

THE

NORTHWESTERN

The First Bank of Lodge Pole. Shortly afterwards
the Bank of Nebraska, being a private institution died
a natural death.
But as business increased with the development of
the county more banking institutions were established
to care for its growing demand. The rise of these
banks register the progress of the county very accu­
rately. Its fifteen banks were established in the fol­
lowing order: The American Bank at Sidney in 1889,
First State Bank of Lodge Pole in 1889, First National
Bank of Sidney 1902, Dalton State Bank 1908, Potter
State Bank 1908, Farmers State Bank of Sunol 1914,
Gurley State Bank 1915, Cheyenne County State Bank
of Lodge Pole 1915, Farmers State Bank of Dalton
1916, Nebraska State Bank of Sidney 1917, Farmers
State Bank of Gurley 1917, Citizens State Bank of Pot­
ter 1917, Liberty State Bank of Sidney 1919, Lorenzo
State Bank of Lorenzo 1919, and the Huntsman State
Bank of Huntsman 1919. The First National of Sid­
ney is the only national bank in the county.
PURCHASE STOCK.
A deal was made recently whereby F. R. Ward
and E. W. Witten, of Pierce, Neb., purchased the
stock of the state bank at Benedict, Neb. Benedict is
a thriving little town about ten miles north of York,
in York county, and is surrounded by a rich, fertile
country and is considered a good proposition in the
banking line. Mr. Ward is a young man of experience
in the banking business. He has been assistant cashier
in the Pierce State Bank for about two years and made
good in every way. Mr. Witten is a Pierce, Neb.,
product and has been careful and painstaking in his
work as deputy county clerk and later as bookkeeper
for the Farmers Grain Co.


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Federal Reserve Bank of St. Louis

BANKER

Packers National Bank
UNION STOCK YARDS

OMAHA

W e C ollect Im m ediately
O n A rriv a l

Live Stock Returns
Grain Drafts
J. F. COAD, President.
A. L. COAD, Asst. Cashier.
H. C. NICHOLSON
Vice President and Cashier
W. J. COAD, Vice Pres.
I. L. ADAMS, Asst. Cash.

47

48

THE

NORTHWESTERN

BANKER

October, 1919

NEBRASKA
3

» ...... I " ...............llllllllilllllllllll.......... 111rim 11m in Im i .........m illllll.................................................... i r n i l l l l l l l ...........m iillliu lllü f

J. V. Johnson, will be associated in the enterprise. Mr.
Johnson was formerly chief clerk in the state banking
department and when he went to war was assistant
cashier of the American State Bank of Omaha.

THE ONLY BANK
— in t h e —
UNION STOCK Y A R D S

Save time in realizing on your funds by instructing
your shippers to deposit their credits with us.
WE ARE TH E CLEARING HOUSE
FOR TH E LIVE STOCK BUSINESS OF TH E
OMAHA STOCK YARDS

Capital, Surplus and Profits, $1,750,000

O F F IC E R S
H.
F.
J.
J.
J.

C. Bostwlck, President
E. Hovey, Vice President
O. French, Vice President
B. Owen, Cashier
S. King, Assistant to Pres.

H. C. M iller, Assistant Cashier
F . J. Enerson, Assistant Cashier
W . H. Dressier, Asst. Cashier
C. L . Owen, Assistant Cashier
H. W . Vore, Auditor

Timeliness
/ ^ \ N E reason for th e popu la rity of C raddick
Service am ong th e 560
Banks th a t em ploy it— is
its timeliness.

The
mill can
never grind
with the
water that
has passed.

I t is always ready to
handle, w ith ability and
dispatch, the advertising
for any local business situa­
tion th a t arises.
Find o u t its o ther good
qualities by asking for a
proposal for your bank.

A D V E R T IS IN G

S E R V IC E

MINNEAPOLIS. MINNESOTA


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Federal Reserve Bank of St. Louis

CUSTER STATE SOLD.
An important change has taken place in the financial
circles of Broken Bow and Custer county, Neb. H.
Lomax, Alpha Morgan and James Lomax, who were
the sole owners of the Custer State Bank have sold
their entire holdings to R. V. McGrew, of Omaha,
Neb., and his associates. The personnel of the new
ownership will be F. M. Currie, chairman of the board
of directors, R. V. McGrew, president. L. E. Coy,
vice president, John P. Robertson, cashier, Karl Ab­
bott, assistant cashier.
W, E. SHAFER RESIGNS.
W. E. Shafer, vice president of the American State
Bank, Omaha, Neb., at a meeting of the directors of
the bank held recently, resigned his position to be­
come effective immediately. D. W. Geiselman was
elected as his successor.
NEBRASKA NEWS AND NOTES.
Ernest J. Duis, who has been employed at the Farm­
ers State Bank, Gothenburg, Neb., has resigned his
position and will reside at Wilmette, 111.
O. W. Klein, formerly of Harper, Iowa, has accepted
a position as teller at the Hartington National Bank,
Hartington, Neb.
Archie K. Coombs has resigned his position of cash­
ier in the Elyria State Bank, Elyria, Neb.
Leland Hanchett has resigned his position as book­
keeper in the Ralston State Bank to accept a position
with the First National Bank in Omaha.
Robert Larson has sold his interest, in the Stromsburg Bank, Stromsburg, Neb.
John Curtis has again located in Fairmont, Neb., as
cashier of the Bank of Fairmont, Neb.
W. T. Shields, who since last February has been in
the First National Bank, of Chadron, Neb., recently
purchased an interest in the bank at Oshkosh, Neb.
Mr. Shields is succeeded in his position by Jos. E.
Deek, of Atkinson.
The town of Murdock, Neb., will soon have a new
bank, known as the Farmers and Merchants Bank of
Murdock.
The Bank of Monroe, Neb., will erect a new bank
building. The building will be a fine structure of Bed­
ford Buff Cut Stone and Old Rose Scratch Brick of
the latest design. The structure will have a frontage
of thirty-eight feet and fifty-three feet long with an
eighteen-foot beamed ceiling. The fixtures will be of
marble and Acid Fumed Oak.
The state bureau of securities recently authorized
the Farmers Union State Exchange of Omaha to sell
$1,000,000 in common stock.
The state banking bureau has granted charters to
the Goodwin State Bank, Goodwin, Neb.; caipital
stock, $10,000; president, J. C. Duggan, vice president,
H. H. Adair and cashier, Ray F. Quinn. Farmers

October, 1919

THE

NORTHWESTERN

State Bank, Hazard, Neb.; capital stock, $15,000; presi­
dent, W. F. Sanders and cashier, Carl E. Peters.
J. Adams has resigned his position in the Dannebrog
State Bank, Dannebrog, Neb.
A charter has been granted to the Security State
Bank of David City, Neb. J. C. Harris, formerly of
Neligh, Neb., is named as vice president of the new in­
stitution.
A deal was recently closed whereby Robert Lucas,
of Pierce, Neb., acquired the controlling interest in the
Royal State Bank, Royal, Neb. W. E. Staab, vice pres­
ident and F. W. Muller, cashier are retaining their in­
terest in the bank.
The new Farmers and Merchants State Bank, Pen­
der, Neb., opened for business recently, capitalized at
$50,000.
A. V. Kjelson has purchased an interest in the First
National Bank of Stromsburg, Neb.

49

BANKER

Milton T. Barlow
President
Gurdon W. W attles
■Chairman of the
Board
John
Wm.
Robt.
Vice

L. Kennedy
E. Rhoades
P. Morsman
Presidents

Jos. C. McClure
Cashier
Gwyer H. Yates
Chas. F. Brinkman
Thos. P. Muiphy
Ralph R. Rainey
H arry E. Rogers
Perry B. Hendricks
Assistant Cashiers

Y our B usiness C ordially Invited

UNITED STATES NATIONAL BANK
OF OMAHA

E. C. Lincoln has resigned his position as assistant
cashier at the First National Bank, Park Rapids,
Minn., and,‘after twenty-two years of service will re­
tire from his connection with that institution.
The Merchants State Bank, of Breckenridge, Minn.,
with $50,000 capital, will be the third bank in that city,
the two existing being national banks. John H. El­
bert, Breckenridge, will be president. The stockhold­
ers include Otto Bremer and Senator Peter Van Hoven,
both of St. Paul.
Kirk Hindman, of Red Wing, has been elected cash­
ier of the recently organized Frontenac State Bank,
Frontenac, Minn.
A charter has been applied for by N. P. McGregor
and Alex McGregor, of Minneapolis, for the Security
State Bank, Long Siding, Minn.

W anted
to Buy
Controlling Interest
in Banks

LEGAL QUESTION.
Qu estion: We have several customers who have
money in our bank on time certificates of deposit made
out in the names of two persons, usually husband and
wife, who wish the money left so that either can get
it at any time and especially so that in case of the death
of one, the other can draw the money without any
danger of any one, heirs or otherwise, causing any
trouble for the surviving party or the bank.
Will you kindly indicate how the certificate should
be made out to accomplish this?
Answer: We suggest that you make the certificates
of deposit payable to “John Smith, or Mary Smith,”
or rather “to the order of John Smith or of Mary
Smith.” This, we believe, would avoid any difficulty in
the case of death of either party. It might be well to
have a memoranda signed by both of them, stating that
upon the death of either, the survivor should have the
right to draw the money out of the bank, and have the
memoranda either attached to the certificate of deposit
or filed with the bank.
Matters of this kind are sometimes taken care of
by making the certificate payable to “John Smith and
Mary Smith” and having both endorse it. But we do
not advise this, as in the case of theft and the certifi­
cates falling into the hands of an innocent purchaser,
John and Mary would not be entitled to any relief if
the bank cashed it.

Iowa, M innesota and Northwest.
Having capital $25,000 and up.


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Federal Reserve Bank of St. Louis

Located in

State price, am ount deposits, territory
served and full inform ation. We are
not dealers or brokers in Banks.
Address replies to 2335 care this paper.

Hotel Fontenelle
OMAHA, NEBRASKA
Bankers, have your m ail sent
in our care. Reservations care­
fully attended to.

Single
Double

-

RATES
$2.50 to $5.00
- $3.50 to $7.00

M a n ag em en t of

H. E. GREGORY

50

THE

NORTHWESTERN

BANKER

October, 1919

MINNESOTA BANK NEWS
A NEW RECORD IN BANK CLEARINGS.
The St. Paul Clearing Houses recently showed a gain
of $90,000,000 in bank clearings over the corresponding
period of last year. So far this year the clearings are
$587,345.64 and it is expected that St. Paul will reach
the billion dollar mark by the end of the year. Pre­
viously the record bank clearings year for St. Paul was
1917 when the amount registered was $758,147,993.33.
BANK PREPARES HOME BUDGET,
The Capital Trust and Savings Bank, St. Paul, has
prepared a budget for home use and is circulating
it among its customers. A complete budget for any
income has been worked out and placed in book form
with twelve pages, one for each month so that the
housekeeper can keep an itemized account of all ex­
penditures. It is thought that through this system of
household accounts much can be done toward the in­
telligent and economical management of the family
income.
KENNETH BANK INCREASES CAPITAL.
The State Bank of Kenneth, Minn., has increased
its capital stock from $12,000 to $25,000. A change
was also made in the directorate, John Engebretson,
who has been cashier for the past eight years, was
elected president, B. Halvorson, vice president and

M idland N ational
Bank
M in n e a p o lis , M in n .
C on den sed S ta te m e n t a t C lo s e o f B u s in e s s S ep te m ­
b e r 12, 1919.

Carl Olson, cashier. The bank was organized in 1907
and has done an increasing business ever since its es­
tablishment.
TO ERECT A NEW BUILDING.
The First National Bank, of Willmar, Minn., has
purchased a site for a new building, at a cost of $10,000. The bank will erect a fine new modern banking
home on this site in the near future. The Spicer Land
Company, which now occupies the bank’s new location,
will have offices on the second floor of the bulding.
The bank is planning to erect a very handsome struc­
ture.
PURCHASES BANK.
J. S. Ulland and associates buy Foxhome Bank,
Foxhome, Minn., and are now interested in more than
twenty-five banks. Officers and directors have been
elected as follows: President, J. S. Ulland; vice presi­
dent, A. H. Denniston; cashier, E. E. Manuel, and as­
sistant cashier* R. W. Rossow. Directors: A. H. Den­
niston, Frank J. Evans, I. O. Swenson, V. C. Jensen,
N. F. Field, E. E. Manuel and J. S. Ulland.
BANK CLEARINGS SHOW INCREASE.
Bank clearings for the first eight months of 1919 in
Dulu'th, Minn., banks were $83,549,949.61 greater than
in the corresponding period of 1918, according to the
monthly report of Isaac S. Moore, manager of the Du­
luth ’Clearing House. August this year exceeded the
same month last year by $8,081,279.75. The total clear­
ings for August, 1919, were $28,655,246.15 and the total
clearings for the year 1919 to Sept 1 were $236,354,955.82.
Every month this year has exceeded 1918 in the total
of bank clearings in the Duluth banks. If the percent­
age of increase continues the balance of the year, and
bankers predict that it will, the total bank clearings
for the year will be in excess of 1918 by more than
$ 100,000 ,000 .

R eso u r ce s.

L o a n s a n d D i s c o u n t s ............................. ....$ 1 5 ,9 4 8 ,8 1 7 .9 4
O v e r d r a f t s ............................................................
11,896.87
U. S. B o n d s a n d T r e a s u r y C e r t i f ic a t e s . 1,015,078.08
O th e r B o n d s .......................................................
182,620.31
S to c k in F e d e r a l R e s e r v e B a n k ..............
42,000.00
5% R e d e m p tio n F u n d a n d D u e f ro m
U. S. T r e a s u r y ....................
12,300.00
C a sh o n H a n d a n d D u e f r o m B a n k s . . .
6,776,054.96
L ia b ilitie s .

$23,988,768.16

C a p it a l S to c k .....................................................$ 1,000,000.00
S u r p lu s
400,000.00
U n d iv id e d P r o f its ....................................... ..
133,604.70
R e se rv e d fo r - T ax es, I n te re s t an d U n ­
e a r n e d D is c o u n t .........................................
147,956.62
C i r c u la tio n .............................................. ............
1 0 0 , 000.00
B ills P a y a b l e w i t h F e d e r a l R e s e r v e
B a n k ........................................................... .. ,■
200, 000.00
A c c e p ta n c e s E x e c u t e d f o r C u s to m e r s . *.
275,000.00
D e p o s its ......................................................... .... 21,732’206.84
$23,988,768.16

OFFICERS
H. R. Lyon, Chairman of the Board
Charles B. M ills.......... President
Trygve Oas . .Assistant Cashier
Edgar L. M attson. . .Vice Pres.
W. R. M urray.Assistant Cashier
George F. Orde. . . .Vif*“ Pres.
V. E. Hanson.Assistant Cashier
Andreas T Jelan d ..............Counsel
J.
H. Sharpe.A ssistant Cashier
O. I. Thorpe.......... Credit Aittr.
Ir
K E eitn . .Assistant Cashier
E. V. Bloomquist.......... Cashier
H. IX Davis. .Assistant Cashìér


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Federal Reserve Bank of St. Louis

SWISS SHOW GRATITUDE,
A reproduction in bronze of a gold medal which the
people of Switzerland dedicated to President Wilson
and the United States has been received by Joseph
Chapman, vice president of the Northwestern National
bank, of Minneapolis, from the Banque Commerciale,
of Berne.
Accompanying the gift was a message expressing
the Swiss bankers’ appreciation of the services done
Switzerland by this country during the war. Especial
gratitude is expressed for the shipment of food.
MOVES TO NEW LOCATION.
The Nicollet Avenue State Bank, of Minneapolis, has
changed its corporate name to the Industrial State
Bank, and has changed its location from Nicollet Ave­
nue near 13th Street to Marquette Avenue and 8th
Street, where it has greatly enlarged quarters.
A long-term lease has been secured by the bank
for the ground space of the property, and workmen are

October, 1919

Established 1863

THE

NORTHWESTERN

51

BANKER

The First National Bank of St. Paul
C apital and Surplus , Five M illion D ollars
This strong, progressive bank, conducted along con­
servative and modern lines, offers every facility
consistent with sound, prudent banking for the sat­
isfactory handling of your Northwestern business.

R esources S ix ty -T w o M illion D ollars
already at work constructing a new vault for the insti­
tution. The latter will be built with a view to future
business expansion, and provided with the latest bur­
glar proof protecting devices, the general construction
being of chill-hardened steel and concrete.
Increased accounts have demanded larger quarters
for the bank, and the 8th street location was secured.
George M. Selover, a well-known attorney and capi­
talist, is president of the bank; F. W. Hales, Sr., vice
president, and F. W. Hales, Jr., cashier. The bank
was incorporated several years ago.
LAND BANK MAKES REPORT.
The first annual report of the Valhall branch of the
Federal Loan Bank, which operates in Pennington
county, Minnesota, and vicinity, shows a total of $110,000, was loaned to farmers of the section during the
period the bank has been in operation. The report
covers a period of a little less than a year. There were
forty-one loans passed on favorably, the largest one for
$8,500 and the smallest for $500. At present there are
twelve loans pending amounting to $40,000. The divi­
dend on the interest payments on these loans amounts
to $219.05. Secretary L. A. Pampert is well pleased
with the showing made during the first year of opera­
tion and is confident the farmers will appreciate the
advantages presented through the land bank when
they'become better acquainted with its workings.

trust department. Formerly he was a member of the
law firm of Otis and Otis. He attended the first officers
training camp at Fort Snelling, and obtained a commis­
sion as second lieutenant, receiving his promotion to
captain in France.
A NEW BANK IN DETROIT.
Articles of incorporation were recently filed with
the secretary of state for a new bank in Detroit, Minne­
sota, known as the Detroit State Bank. The incor­
porators are A. L. Brook, New Ulm, Minn., Walter
Oby, Aitkin, Minn., G. T. Hass and other citizens of
Detroit.
AVIATOR TO HEAD BOND DEPARTMENT.
Clinton J. Backus, recently discharged from the
aviation service, has been appointed manager of the

At Your Service in Duluth
S en d u s you r ite m s on th e territory tr ib u ta ry
to th e H ead of th e L akes. O ur service w ill
p lease you . A favorable ra te o f in te r e s t is
allow ed on in a ctiv e a c c o u n ts, s u b je c t to
w ith d raw al w ith o u t n o tic e . B ank s an d b a n k ­
ers are in v ited to secu re ou r te rm s.

First National Bank

W. G. OTIS APPOINTED TRUST OFFICER.
C.apt. Willis C. Otis was recently appointed trust of­
ficer of the Capital Trust & Savings Bank of St. Paul.
He returned a few months ago from over a year’s ser­
vice oversea and has since been connected with the

DULUTH, M INN.

Capital, Surplus and Profits over

$3,000,900

The Bank of Complete Service.

Guaranteed Electric Burglar Alarm Systems
BUILT BY

The American Bank Protection Company,

Inc.

C A P IT A L $ 1 5 0 ,0 0 0 .0 0
M in n e a p o lis ,

-

-

-

M in n e s o ta

Are recognized by all Bonding Companies Write for particulars.
DO IT NOW.
We also build Safety Deposit Boxes, Vault Omnibuses, Steel Filing Devices


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Federal Reserve Bank of St. Louis

52

THE

NORTHWESTERN

relations existing
The b ank
and its 1800

betw een this
correspondent
bankers is the best evidence of its abil­
ity to serve satisfactorily your interests
in the N orthw est.

The

First and Security
National Bank
M IN N E A PO L IS

1 8 0 0 B a n k C orrespondents

Capital & Surplus S I 0 ,0 0 0 ,0 0 0

BANKER

October, 1919

INVESTOGRAPH
Presents each m onth,
brief financial item s
of interest. It is yours
for the asking. H # f

I0L0-Î7TABECKVIQMPANY
INVESTMENT BANKERS
MINNEAPOLIS
newly formed municipal bond department of the Mer­
chants Trust and Savings Bank at St. Paul.
Mr.
Backus has been buying farm, municipal bonds and
farm mortgages for the Merchants Trust and Savings
Bank in the states of Montana, Oregon and Idaho, with
Helena, Mont., as headquarters. E. S. Judd, the bank’s
representative in eastern Montana, will take the place
left vacant by Mr. Backus and will make Billings,
Mont., his headquarters. The Merchants Trust and
Savings Bank plans to build up a very strong muni­
cipal bond department and the new manager is well
qualified for the position.
SINCLAIR CONSOLIDATION.
Consolidation of all Sinclair properties in the United
States and foreign countries was agreed upon at a
series of director’s meetings held recently. Stockhol­
ders of the Sinclair Oil & Refining Corporation, Sin­
clair Gulf Corporation and Sinclair Consolidated Oil
Corporation will be asked to ratify the action of the
directors as special meetings which have been called
for September 22. The new corporation will be known
as Sinclair Consolidated Oil Corporation, operating
under the laws of the state of New York. One share
of the stock of the new corporation will be issued in
exchange for each share of the several constituent com­
panies issued and outstanding and not owned by any
of the constituent companies. Present authorized
capitalization of the old companies is as follows : Sin­
clair Oil & Refining Corporation, 2,500,000 no-parvalue shares; Sinclair Gulf Corporation, 2,000,000 nopar-value shares and Sinclair Consolidated Oil Cor­
poration, 1,000,000 no-par-value shares, the total for
the three companies, 5,500,000 no-par-value shares.
The new corporation will have an authorized issue of
5,500,000 no-par-value shares, but as 1,000,000 of the
Sinclair Oil and 1,000,000 of the Sinclair Gulf shares
have not been issued, the new corporation will have
unissued or in its treasury more than 2,000,000 of the
total 5,500,000 shares authorized. The present Sin­
clair Consolidated Oil Corporation of New York has
taken over all of the assets of the Delaware corpora­
tion of the same name; the Delaware corporation is
being dissolved and on or after August 28th, the


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

53

BANKER

"The Bank That Service Built.”
Capital, $1,000,000

Surplus and Profits (earned), $3,900,000

Deposits, $68,000,000

The Seaboard National Bank
OF THE CITY OF NEW YORK

Exceptional personal service on the part of our officers is ex­
tended to all accounts, and that has been a rule since 1 8 8 3 , the
year w e opened for business. Our first official report gave the
deposits as $ 1 ,1 2 8 ,8 0 6 ,1 8 .
C. C. T H O M P S O N , V ic e P r e s i d e n t
B. L . G IL L , V ic e P r e s i d e n t
W . K . C L E V E R L E Y , V ic e P r e s i d e n t
L . N. D E V A U S N E Y , V ic e P r e s i d e n t

S. G. B A Y N E , P r e s i d e n t
C. H . M A R P IE L D , C a s h ie r .
O. M. J E F F E R D S , A s s i s t a n t C a s h ie r

shares of the Delaware corporation will be exchanged
for shares of the present Sinclair Consolidated of New
York upon surrender to Mercantile Trust Company of
New York.
STATE BANK OF NORTHFIELD.
The State Bank of Northfield, Minnesota had de­
posits February 20, 1912 of $216,318.92 and September
12, 1919, $718,131.10, which shows the wonderful prog­
ress of this institution. In their statement just issued
they give the following: “We invite attention to the
above statements which reflect the steady growth and
the present healthy condition of the State Bank of
Northfield. From a modest start in the year 1910 our
business has grown until at this time we report re­
sources in excess of $700,000. The number of patrons
is rapidly increasing. We take this opportunity to
thank our customers for their liberal patronage. We are
gratified at the results thus far obtained and our ambi­
tion is to enter all our friends upon our books as cus­
tomers. We refer you to any of our patrons. They
will tell you of our liberal and helpful banking service.
Those who have watched our official reports as pub­
lished from time to time, will know that we have al­
ways maintained a strong position, that our policy has
been to carry a large reserve, to put the interests of the
depositor ahead of those of our stockholders. On this
basis we solicit your business and pledge our best ef­
forts to serve you in such manner as to make our re­
lations mutually profitable.”
DRAKE-BALLARD BUILD ON CONFIDENCE.
Real success in life and business always establishes
“confidence.” The success of Drake-Ballard Com­
pany is founded upon the confidence placed in this in­
stitution by its many customers and friends. The rapid
growth of Drake-Ballard Company since it organized
in 1880, is an indication that the company is operating
on a policy absolutely sound and stable.
The Drake-Ballard Company is a Minnesota organi­
zation with an authorized capital of $1,000,000 of which
$700,000 has Teen paid up. The undivided profits are
$150,000 which makes the total capital and - surplus
$850,000.
The company has recently added an additional six­
teen hundred square feet to their office space, making
a total floor space now occupied by this progressive
farm mortgage and investment banking house at close
to six thousand square feet. The large suite of offices
on the second floor of the Palace Building Minneapolis,


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

C.
J.
B.
J.

C.
D.
I.
E.

F I S H E R , A s s i s t a n t C a s h ie r
S M IT H , A s s i s t a n t C a s h ie r
D A D SO N , A s s i s t a n t C a s h ie r
O R R , A s s i s t a n t C a s h ie r

54

THE

NORTHWESTERN

BANKER

October, 1919

O r n a m e n ta l D esig n B
27 in .x l8 in .

D e ta il o f B ro n z e R a il, F ir s t N a tio n a l B a n k
M in n e a p o lis
R . W . G ib s o n , A rc h ite c t, N ew Y o rk

D esk S ig n A
10 in .x 3 | in .

When Your Bank Needs This Quality ol WorkWe will be pleased to submit designs and prices. Our ornamental doors, rails, screens, signs and name
plates are the choice of leading institutions. We are among the largest manufacturers of ornamental
iron and bronze for buildings and co-operate with the foremost architects. More than a quarter century
of experience is at your service. Work of any design or size can be handled in the shortest time
possible with the highest grade craftsmanship. W rite for catalog.

Flour City Ornam ental Iron Company
Department N

Minneapolis, Minnesota

Bronze Memorial
Tablets
Your bank may appropriately
honor its soldiers by the erec­
tion of an imperishable mem­
orial of bronze.

The memor­

ials shown here are only a
few of many prepared by us
for banks, business houses,
churches and colleges. Write
for art brochure, “Bronze—
The Imperishable Memorial,”
giving complete information.

U n iv e rsa T a b le t


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Federal Reserve Bank of St. Louis

M o d el B T a b le t

October, 1919

THE

NORTHWESTERN

is divided into two departments—the farm mortgage
department and the bond department.
The growth of the office accommodations is the re­
sult of the rapid development of the company’s busi­
ness, not only in Minneapolis, but throughout the
Northwest. More than fifty people comprise the office
force at the home office and about twenty-five people
in their branch offices.
The officers of the company are : Addison N. Drake,
president; Rollin B. Ballard, vice president; Mr. George
C. Jones, secretary and treasurer; Homer D. Ballard,
assistant secretary; Alva M. Drake, assistant treasurer.
The farm mortgage business of the Drake-Ballard
Company was established in 1880 by Mr. Addison N.
Drake, the president of the company. Mr. Drake has
been connected with the farm mortgage business prac­
tically all his life. Besides being interested in many
country banks he owns thousands of acres of improved
farms in Iowa, Minnesota, North and South Dakota.
Mr. Rollin B. Ballard, who is vice president of the
company, has also devoted his entire business life to
farm mortgage business dating from 1887. Like Mr.
Drake, he has considerable holdings in farm lands in
the northwestern states and is on the Board of Direc­
tors of several country banks and different corporations.
Mr. George C. Jones, secretary and treasurer of the
Drake-Ballard Company, has been connected with the
organization for almost twenty years. Mr. Jones is
also financially interested with Messrs. Drake and Bal­
lard in their many country banks and in their joint
holdings of farm lands.
Messrs. Drake, Ballard and Jones own the entire
common stock of the company and through their in­
dividual efforts the business has grown from a small
beginning to its present status.
The company has branch offices at Billings, Montana
and Pocatello, Idaho, and Drake-Ballard Company,
Limited, of Calgary, Canada, is affiliated with DrakeBallard Company of Minneapolis, with offices at Re­
gina, Sask., and Calgary, Alberta.
Associated in the operation of the company’s busi­
ness, are men who are experts in their respective lines.
Each man holds the position in which he is, by reason
of his experience and ability, best qualified to fill. In
this way, the organization is composed of specialists
in their particular line.
The company’s record of thirty-nine years of never
having lost a dollar of principal or interest for them­
selves or for anyone investing in securities handled by
them, speaks well for the safe and conservative policy
of the management. It can truly be said that the success
of this reliable farm mortgage concern justifies the
confideh.ce placed in the institution by its thousands
of customers and friends.
MINNESOTA NEWS AND NOTES.
J. S. Yenny, cashier of the Merchants bank, Winona,
Minn., has been tendered a position as cashier with the
Mercantile State bank, of Minneapolis.
St. Paul, for the first time in its history, will reacL$1,000,000 in bank clearing this year, according to otri
oials of the St. Paul Clearing House association.
Paul M. F. Bonnet, sergeant major of the 60th French
Infantry, one of the veteran regiments of the French
army, has accepted a position with the First and Se­
curity National bank, Minneapolis.
The loot taken by the bandits at the New Brighton
State bank, New Brighton, Minn., robbed by three
masked bandits recently, was $17,000.


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Federal Reserve Bank of St. Louis

55

BANKER

T he Security
that stands behind our first farm mortgage
gold bonds is improved farm land. This
is one of the oldest forms of security and
one of the most stable, as farm land is the
principal source of national wealth.
Investors who believe in absolute safety
for their investments will do well to in­
vestigate our offerings.
A s k f o r o u r b o o k le t e n title d “I n th e S e r v ic e
o f I n v e s to r s ”

Drake-Ballard Company
Capital &Surplus $800,00022
Palace Building,
Minneapolis
ESTA% ao HED

E . F . K N IG H T & CO.
SAFE EXPERTS
All Work Guaranteed
407 Douglas St.

We Go Anywhere on Short Notice
Day or Night
SIOUX CITY, IOWA

NORTHWESTERN STAMP WORKS
St. Paul, M innesota
Rubber Stamps of Every Description
Other Specialties —
Seals, C h eck Protectors
K ey Checks, Identification Checks
Desk Plates, Signs, Pads, Inks
AND IN FACT ANYTHING IN THE STAMP LINE

Capital and Surplus $300,000.00

JO H N F . SIN C L A IR CO.
310-312 M c K n ig h t B u i ld i n g
M IN N E A P O L IS

Farm Mortgages
Mortgage Bonds
Municipal Bonds
Bank Stocks and Commercial Paper
For c o n s e r v a tiv e in v e s tm e n ts

«TRY SINCLAIR SERVICE”

56

THE

NORTHWESTERN

BANKER

October, 1919

M O N TA N A B A N K NEW S
RESERVE BRANCH AT HELENA.
A branch bank of the Minneapolis Federal Reserve
Bank will be established at Helena, Mont., soon, ac­
cording to announcements made by John A. Will, chief
examiner of the Federal Reserve Board at Washington.
Details regarding the establishment of the branch are
not available at this time.
H. V. ALWARD HONORED.
Word has been received to the effect that H. V. Alward, formerly cashier of the Commercial National
Bank, Great Falls, Mont., and secretary of the Mon­
tana Bankers’ Association, has been elected a member
of the executive council of the Washington Bankers’
Association.
IRRIGATE MONTANA LAND.
A movement looking to the irrigation of every acre
of reclaimable land in the state of Montana was started
at a meeting of representatives of the various sections
of the state held recently at Great Falls, Mont. The
meeting was called by Mayor Newman, of Great Falls.
Each locality represented that has an irrigation project
under way or plans to start one promised to finance a
delegate who will go to Washington and put forth a
concerted effort to obtain an appropriation for recla­
mation work.
CONVERTED TO NATIONAL BANK.
The Ingomar State Bank, Ingomar, Mont., has con­
verted to a national bank and will be known as the
First National Bank of Ingomar. This was decided
upon at a recent meeting. Henry Riechers and a Mr.
Van Duzen have been elected to the directorate. Ad­
ditional banking room is to (be added to their present
quarters.
A CONSOLIDATION.
Directors of the Bank of Williston, N. D., announce
the purchase of the bulk of the M. E. Wilson stock in
the Willia.ms County State Bank and the immediate
consolidation of the two institutions, under the name
of the Williams County State Bank.
L. J. Rodman, vice president; O. J. Helland, vice
president and C D . Milloy, cashier of the Bank of Williston, will remain with the new institution, as will also
B. J. Schorredge, cashier of the Williams County State
Bank.
The stock in the institution formed by the consoli­
dation is practically all owned by residents of Williams
county.

over $20,000,000. The First National Bank has a capital,
surplus and undivided profits of over $75,000 and is the
largest and one of the oldest financial institutions in
Pembina county. Earl S. Wallace will remain as pres­
ident.
MONTANA NEWS AND NOTES,
The South Side State Bank, of Butte, Mont., has ap­
plied for an increase in the capital stock from $25,000
to $50,000.
The. application for the charter of the First National
Bank, of McCabe, Mont., has been granted by the de­
partment in Washington and will be issued as soon
as the organization work is completed. The new bank
is being promoted by prominent farmers and business
men of the community. J. W. Schnitzler and Christ
Jacobson, of Froid, are two of the chief stockholders.
Considerable Minnesota capital is also interested.
The Montana Bankers Association agreed not to
foreclose any mortgages on Montana dry land farms
this year because of failure to pay interest unless the
farmer has actually abandoned his farm. Representa­
tives of mortgage firms and banking houses in the cen­
tral west and extreme east promised the state bankers
that they planned to increase the volume of business
in the state instead of withdrawing credits as a result
of the drouth.
The Moccasin State Bank, of Moccasin, Mont., has
increased its capital from $20,000 to $25,000.
The Havre National Bank, of Havre, Mont., has pur­
chased the corner of Third Avenue and Second street
as the location of their new building, which will be
erected soon at a 'cost of $100,000. It will be large
enough to accommodate four stores.
The First National Bank, of Malta, Mont., is making
extensive improvements in its old building and has
been forced to move into temporary quarters- while
the work is being done. The building will be enlarged
and fitted with new fixtures to facilitate the better
handling of the bank’s business. The capital stock has
also been increased from $25,000 to $60,000.

Articles of incorporation were filed recently by the
Elrosa State Bank, of Elrosa, Minn. The bank has a
capital stock of $15,000. The incorporators are C.
Borgerding, H. G. Borgerding and A. J. Borgerding,
all of Belgrade.
State charters are denied two proposed new state
banks, the Citizens State bank, of Rice and the Farmers
State bank, of Menahga, Minn.
The Scandia State Bank, of Stephen, Minn., has
IMPORTANT BUSINESS CHANGE.
changed its name and will be known as the Farmers
An important business change in Drayton, N. D„ State Bank, of Stephen. The Capital stock has been
occurred recently when E. S. Wallace, representing increased from $10,000 to $25,000 and the directorate
the estate of the late J. R. Stong and Mrs. J. R. Stong, will consist of seven members in place of five as form­
sold the Stong interest in the First National Bank of erly.
that city to Mr. Charles B. Mills and his son, Charles
The First National Bank, of Waconia, Minn., opened
B. Mills, Jr. Mr. Mills, senior, is president of the Mid­ for business recently. The capital stock of the insti­
land National Bank of Minneapolis, an institution hav­ tution is $25,000 with a $5,000 surplus fund. P. H.
ing a capital and surplus of $1,500,000 and deposits of Simmons, of Chaska, Minn., is cashier.


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

WORK IS THE NEED OF THE NATION.
(Continued from page 10.)
being used to such “good times,” they spent freely—
in fact, too freely for the good of themselves and those
who had not as yet got beneath the golden shower.
As the matters now stand, the great wealth of the
country to a certain extent has “changed hands.” Those
who have suffered by the change naturally are not
content with conditions. And this class is the class
that will not submit without a contest. It has leaders
who can make their voices heard and their power felt.
The high cost of living has struck this class harder
than any other. But it is not suffering like our poorest
people suffered before the war. We have no bread
lines, and we have none of the near starvation that
prevailed in many quarters before the war. In fact,
the country taken as a whole is more prosperous than
at any time in its history.
What, then, is the solution of this wordy unrest,
this snapping and bickering, this chasing around a
circle hunting for a goat, this attempt to fix the blame
on some group of Americans for the conditions caused
by the world war? What ism, what doctrine, what
theory can we turn to to solve our troubles? In other
words, how can we pay the fiddler? There is only one
answer, an answer which has been taught the human
race from the dawn of creation. Adam was the first
to learn it—WORK!
We have a debt to pay the world. It has advanced
us billions. It has heaped mountains of money on us
for products for which, before the war, it would have
paid less than half what it has paid. If we are to keep
these great profits we must earn them, and the only
way we can pay for our great prosperity and keep it is
by working still harder than we worked during the war.
Prosperity is not a concrete commodity. It blesses
that nation which works the hardest, most efficiently
and most intelligently.
America was not made rich and great and prosperous
by its natural resources alone. It was made so by its
people. Russia and Siberia combined have greater
natural resources than this country. South America
probably has as great. But they haven’t the people we
have.
The world has been on a four-year bust. Its diges­
tion is sadly impaired, and it doesn’t feel much like
work. It will suffer considerably before it has any
stomach for the arts of peace, as it knew them before
the war. It isn’t going to step out of the trenches
over night. But the United States has not suffered
like the other great nations. Its greatest trouble is
that its internal distribution and economies have been
upset. If these are intelligently and patiently worked
out America will recover much more rapidly than any
of its competitors.
But it must not let the doctrinaires, the idealists, the
theorists or the extremists befog its vision. Instead
of hunting for a particular goat, where there will be
found none, no matter how many investigations are
set in motion, it must get to work. We cannot pay
the fiddler by legislation or regulation. We have got
to earn the price by work. That is how we became
a nation. That is how we will remain the greatest.

Application has been made for a charter for the
First National Bank, Pine City, Minn., with a capital
of $50,000.


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Federal Reserve Bank of St. Louis

57

BANKER

Invest W i t h Safety and P ro fit
We have sold over $2,000,000 of our farm loans
without a dollar of loss—

And there has never been a foreclosure by an in­
vestor. These loans are made direct to farmers
through our own banks in North Dakota and Montana.
We frequently have bank stock and other choice
investments to offer. Write us when you have funds
for profitable investment.

C u s t e r C o u n t y Ba n k
W . C . M e C lin to c k , P resid e n t

MILES CITY,

-

-

M ONTANA

Member Farm Mortgage Bankers’ Association.

Two B ankers H otels

The Plankinton Hotel
M ILW AUKEE, W ISC O N SIN

The Julien Dubuque
DUBUQUE, IO W A

Bankers and financial men having business in
Milwaukee or Dubuque should have mail ad­
dressed to these hotels, for best service.
Every Courtesy Assured

The Northwestern Banker
is a n a s s o c i a t e m e m b e r o f
th e

Financial Advertisers
Association
and
th e

an

a c tiv e

m em ber of

Des Moines
Advertising Club

m e m b e r s o f th e A s s o c ia te d
A d v e r tis in g ' C lu b s o f t h e
W o rld .

STANDARDS OF PRACTICE

FIRST: To encourage clean and efficient advertising.
SECOND: To discourage the publication by news­
papers and periodicals of financial advertising
that does not measure up to the highest stand­
ards.
THIRD: To develop among financial institutions mu­
tual points of contact which will tend to improve
their advertising so that this betterment will
become permanent and nation-wide.
FOURTH: To encourage by advertisnig the invest­
ment through reputable financial institutions of
the surplus moneys of the American people.
FIFTH: To discourage unreliable and unsafe invest­
ments.
SIXTH: To make financial institutions realize the
value of advertising, and, by co-operation, deter• mine the most effective means of building busi­
ness, through advertising, in the various depart­
ments of a modern financial institution.

58

THE

NORTHWESTERN

BANKER

October, 1919

SO. DAKOTA BANK NEWS I
BANK CHANGES OWNERSHIP.
The Fedora State Bank, Fedora, S. D., one of the
strongest financial institutions of Miner county, has
been purchased by C. E. Olstad and associates, promi­
nent bankers of Madison. C. E. Olstad will be presi­
dent. The bank has a capital of $20,000 and deposits
of over $300,000.
NEW BANK AT PRINGLE.
A new bank has been established at Pringle, S. D.,
a town on the Burlington, south of Custer, S. D. The
capital stock of $15,000. T. W. Delicate, the Custer
banker, is prime mover in the enterprise and is presi­
dent of the new bank. C. E. Perrin is vice president
MOVE INTO NEW BUILDING.
The Woonsocket State Bank, at Woonsocket, S. D.,
has recently moved into a fine two-story building,
equipped with every modern convenience for a bank­
ing institution. The stock is all owned by Woonsock­
et men and the officers have all been residents of the
town since it started. The officers are: W. H. Wil­
liams, president; E. M. Smith, vice president; W. H.
Allen, cashier and R. B. Morris, assistant cashier.
These men are interested in seeing central South Da­
kota forge to the front as the leading pure-bred live
stock center of the United States.
APPOINTED BANK EXAMINER.
U. G. Stevenson, banker of Fairfax, S. D., has been
appointed state bank examiner for South Dakota by
John Hirning, chief bank examiner. Stevenson be­
came associated with the. Fairfax State Bank, Fair­
fax, S. D., in 1900. Later he became connected with
the Fairfax National Bank, with which institution he
remained until his appointment as examiner of state
banks. Mr. Stevenson will move to Yankton, where
he will establish his headquarters.
RAPID GROWTH.
The Security Savings Bank, Sioux Falls, S. D., was
operated, strictly as a savings bank until April 1st of
this year, when it was re-organized and changed into

a commercial bank. At the time of the re-organization
the bank had deposit's slightly over $100,000, which has
since increased to about three quarters of a million. On
June 2d the bank moved into its present building, which
the bank purchased and owns. On July 9th the capital
stock was increased from $25,000 to $100,000‘and the
surplus from $5,000 to $20,000. The officers of this pro­
gressive institution are : C. L. Norton, president ; E. E.
Olstad and F. W. Schultz, vice presidents ; E. E. Ol­
stad, cashier and Chas. S. Ashton, assistant cashier.
A NEW KIND OF C. D.
By Martin C. Briggs, Cashier, Bank of Viborg, Viborg, S. D.

It is an acknowledged fact that the Liberty Loans
have inculcated in the people a desire for saving that
was absent before the war. This statement is perhaps
trite by this time, but it is necessary for me to make
it in order to best pave the way for what follows.
Again, to repeat a truism, the banks ought to be, and
can, cash in on this awakened desire for saving. There
are various ways to do this, of course, but there is one
obvious^ way that follows the line of least resistance,
and which, so far as I know, has never been used by
any bank. In passing, I will add that our bank is plan­
ning on using it.
As we know, the people want to save—they feel that
they ought to save. But they have been educated along
a certain line of saving thru the government thrift
stamp campaigns, and the bank that couples this idea
to its own business, the business of getting more de­
posits, is the bank that will assuredly reap the har­
vests. The government has done the advertising, and
the people are ready for it.
For years and years, banks all over the nation have
issued certificates of deposit, bearing varying rates of
interest, these certificates being promissory notes is­
sued by the bank to a designated individual. It is'a
significant fact that most of these certificates bear
away down in one corner a few small letters stating
that the certificate bears a certain rate of interest. Of
course everyone knows that they bear interest; they
know that they will receive interest in addition to the
principal when the certificate matures, but they do not

General View of Headquarters at Mulehead Ranch.


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

realise how rapidly that interest will accumulate. They
are not shown, in a definite, tangible way, just how
their money will work.for them. True, they know it
subconsciously, of course, but the time is ripe now for
the banks to inaugurate a change in this world-old sys­
tem and use some of the methods of the successful
salesman in getting business—namely, to put the
fact that he is going to make extra money by tak­
ing out the certificate, so plainly before the holder, that
he will SEE, and not simply reason. For comparative­
ly few people stop to reason. It is good salesmanship
to use samples so that the customer.can see what he is
getting. That applies to banking just as much as it
does to the peddling of prunes.
This brings us to the plan. It is not original. I
imagine that someone in the U. S. Treasury Depart­
ment first thought it out, and then he used the idea in
the War Savings Stamp campaigns. It worked. It
worked so well that we bankers can adapt it to our own
purposes now that it has served the government in
the emergency, with a reasonable degree of success
assured because it rests upon a sound psychological
basis.
The War Savings Stamp made no mention of inter­
est on its face. It simply was a promise to pay, made by
the government. But the effective part of it was that
it promised to pay more than you loaned it. Naturally,
the extra amount was the interest actually due. But
who stopped to think of that ? One naturally reasoned
that he was paying $4.12 or whatever it was, for some­
thing that was worth $5.00, if you only waited a little
while. The War Savings Stamp VISUALIZED in­
terest for the first time in financial history. True,

59

BANKER

The Minnehaha National
Bank
Sioux Falls, S. D.

Invites the accounts of banks and bankers. Our ex­
tensive clientele, developed during more than thirtyfour years of prompt and dependable service is
splendid endorsement of the pleasant and satisfactory
relations maintained with correspondents.

Resources Over - $2,500,000

DAKOTA TRUST & SAVINGS BANK
Sioux Falls, South Dakota
Capital and Surplus $110,500.00
Banks and B ankers Accorded
L iberal Treatm ent
A. M C E SE R U D , P resid e n t
O . HAYWARD, V ice P resid en t

TO M COSTELLO, V ice Pres,
V. H . M ASTERS, C ashier

When Farmers in
Spink County
and Cerro Gordo, and their cousins
throughout the Northwest harvest a prof­
itable crop, new business is set in motion
reacting at once in Minneapolis. Whole­
sale houses, factories, banks become bee­
hives of activity.
In one month’s time the resources of
The Northwestern have increased $12,C00,000.
Executives, department managers and
employees of this bank are primed to
take care of the increased fall business.
With enthusiasm they are meeting the
grateful task of caring for new accounts.
They welcome the chance of serving you.

The Northwestern National Bank
Minneapolis, Minnesota


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Federal Reserve Bank of St. Louis

Resources $71,000,000

60

THE

NORTHWESTERN

EDWIN J. BISHOP

C E R T IF IE D P U B L IC A C C O U N TA N T

M ember o f Am erican Institute and
M innesota Society of Accountants
A u d it s —C r e d it I n v e s t i g a t io n s —S y s t e m s

ST . PAUL
Globe Building

FARGO, N. D.
Fargo National Bank Building

M IN N EA PO LIS
Wilmac Building

A. H . H AM M ARSTRO M
CERTIFIED PUBLIC ACCOUNTANT
Member—American Institute of Accountants
Fellow—Iowa Society of Certified Public Accountants
208 Weston Bldg.

C L I N T O N , IO W A

BANKER

October, 1919

coupons on bonds and notes are a visualization of in­
terest, but not in the same effective way as a promis­
sory note of unquestioned security that agrees to pay
back more money than you paid for it at a specified
date, with no interest mentioned. That is actually
showing the cumulative power of interest to the nth
degree. It represents almost as much appeal to the
average man as does the trading of four silver dollars
for one five dollar bill when he is on the long end of the
trade.
Now, the banker has the opportunity of profiting if
he will make a slight change in the old time tried sys­
tem of selling C. D.’s. Why not sell C. D.’s already
discounted? For instance, out here the banks pay 5
per cent for time money. A C. D. under this plan
would be made for $105, due in one year, but the cus­
tomer would only pay $100 for it. Of course, no in­
terest would be paid. The customer is getting no
more than before; he understands that subconsciously,
but his first thought is that he is getting $105 for $100!
And he is, too! I have been a salesman myself, and
know thoroughly the value of a definite, visual appeal
that does not demand too much reasoning on the part
of the customer.
In order to work this successfully, printed forms
should be used. The old C. D. form might be used,
but greater success will follow the employment of
specially printed forms with copy somewhat as fol­
lows :
For value received, the First State Bank of Smithville, promises to pay t o ......................... ............ $105,
without interest, on ................ ....................................
Of course, it is wise to have on hand forms for different
amounts and different periods of time. Too much varie­
ty entails prohibitive printing expense so it would be
well to confine the forms at' first to say, $105 or $104
and $1050 and $1040, according to the interest rates
in vogue with the particular bank.
After the forms are prepared, insert an attentioncompelling ad in the local paper; not one of the
hackneyed writeups that tell of the many years of exist­
ence of the bank, and let it go at that, but a real, red
blooded lot of copy that will show the reader what you
have to sell and how you sell it. Follow this publicity
up with little four-page folders telling how the new
plan works, and then frame some of the new certifi­
cates, and hang them up in a conspicuous place in the
lobby. Explain personally the new plan to your cus­
tomers.
THE MULEHEAD RANCH.

“ A s N e a r ly P e r fe c t A s Y o u C a n P r o c u r e ”

IOWA SHIELD BRAND SEEDS
C orn , A l f a l f a , S w e e t C lo v e r, T im o th y , B lu e
G ra ss, C an e , M ille t, S u d an G r a ss an d o th e r
fa rm seed s.

SEED CORN OF BEST Q UALITY
S am p le s, p ric e s a n d s p e c ia l te r m s on a p p li­
c a tio n . O u r see d s m u s t p le a s e y o u o r t h e y a r e
r e tu r n a b le to us.

IOWA SEED CO.


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Federal Reserve Bank of St. Louis

DES MOINES, IOWA

The United Cattle Loan and Live Stock Company
has taken over the Mulehead Ranch, which has be­
longed to the Jackson Brothers for the past eighteen
years.
The ranch comprises 26,000 acres of deeded land in
Gregory county, South Dakota, and fronts for some
seventeen miles on the Missouri river. It derives its
name by being located at Mulehead Point and Mule­
head Bend on the “Big Muddy,” and is famous all over
the Northwest.
Mulehead ranch has been constantly developed until
it has reached such a high point that it is now looked
upon as the finest ranch of its kind in the world. In
addition to the springs, creek and river, the ranch is
watered by nine artesian wells, flowing warm water
every day in the year. It is stocked with some 6,000

October, 1919

THE

NORTHWESTERN

BANKER

A Bunch of Whiteface at Mulehead Ranch.

head of high-grade Hereford cattle, which Prof. Ken­
nedy says is the finest herd of its kind in the world.
Mulehead Ranch has nine sets of improvements, the
buildings are all modern and the total value of the
property is placed at over $2,000,000. It is located
just across the river from the ranch owned by John H.
Blair, vice president of the Iowa National Bank.
They have a general round-up at the ranch late in
October of each year, which is a sight worth going
many miles to see. Quite a number of Iowa bankers
and farmers, who are stockholders in the United Cattle
Loan and Live Stock Company, have arranged to visit
the ranch this fall during the round-up.
The officers of the United Cattle Loan and Live
Stock Company are: N. M. Hubbard, Jr., president;
Leo E. Stevens, vice president; Ernest A. Jackson,
vice president; Frank D. Jackson, secretary, and
Charles A. East, assistant secretary.

SIOUX FALLS, S. D.
H ie
Sioux Falls National Bank
R eal Direct S ervice on Item s
to Banks and Bankers
CALL OR W R ITE US

Bankers in Live Stock Territories
If a financial service that supplem ents your
own loaning facilities will enable you still fur­
ther to encourage your local farmer and stockmen, write us as to our m ethod of cooperating
with banks and bankers in all parts of this great
Cattle Belt.
Our m otto is: “We loan m oney to grow
cattle and sheep.” Our com plete banking ser­
vice is at your command.

STOCK YARDS NATIONAL BANK
So. St. Paul, Minn.


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Federal Reserve Bank of St. Louis

61

62

I

THE

NORTHWESTERN

BANKER

October, 1919

NO. DAKOTA BANK NEWS

W ÊÊKÊÊÊÊÊÊÊÊÊÊ................

f

Eg

CELEBRATES FORTIETH ANNIVERSARY.
in which those who furnish the money are not given
The First National Bank of Grand Forks, celebrated control of the enterprise they are making possible by
its fortieth anniversary recently. In 1897 S. Titus of their financial backing.
Sauk Center, Minn., established the institution and was
The resolution follows:
later joined by J. Walker Smith. It was operated as a
“Whereas, information has come to this state bank­
private bank by Messrs. Titus and Smith for some ing board that A. C. Townley and a man from San
fime and was then chartered as a national bank, under Francisco by the name of Cutting are out among the
the name of the Citizens National Bank as an insti­ farmers of this state organizing banks which are so
tution had previously been organized by Chicago organized that a corporation controlled by A. C. Townparties known as the First National. The later bank ley owns 51 per cent of the stock in each bank, with the
was finally purchased by the Citizens National and as­ result that the farmers puttting their money in, will
sumed the name of the First National Bank.
have nothing to say about the actual operation of the
During the successful career of this institution it bank, who will be the officers, what kind of notes it
has purchased several smaller banks but the most im­ should take, etc.
portant event in its history occurred in 1896 when the
“Whereas, the banking board considers the double
Union National and the First National consolidated liability of the league exchange valueless, and,
under the name of the latter.
This greatly
“Whereas, banks organized as outlined above are
strengthened the bank and made possible a splendid inimical to the best interests of the state guarantee
financial institution capable to handle the growing fund.
business.
“Be it resolved, that a warning be sent out by the
Mr. Titus held the position of cashier for a great attorney general of the state warning the farmers of
many years and also that of president, he is now chair­ this form of bank organization, and further that the
man of the Board of Directors. A. I. Hunter, former board urges the farmers that wherever they feel that a
cashier of the Union National, is president and J. R. bank is needed that they subscribe to all the stock
Carley, cashier.
themselves; that when they put their money into a
bank they have something to say about who is run­
ning it, the kind of notes to be accepted; that they
FEDERAL LAND BANK PAYS DIVIDENDS.
The local subscribers of Jamestown, North Dakota, elect their own board of directors and riot be subject
received their first dividends from their stock in the to dictations of any person or any corporation, and,
Federal Land Bank. T. he dividend is figured at the further, that the board assures the farmers that they
rate of six per cent on the amount of the subscription will do everything they possibly can to assist in the
from the date of its issue to August 1, 1919. The organization of banks which are actually controlled
total amount for the members in the twelve townships by the farmers themselves.”
surrounding Jamestown, about sixty in number, is
For some time Townley has been personally engaged
$1,395.07 and ranges from a few dollars per member up in the organization of banks, the first of these being at
to about forty dollars. The total loans in the district Sheyenne, where the company he formed purchased
are $333,700, and the capital stock is $16,685.
a national bank and took over its operation. In that
This dividend is made after all organization and case, 51 per cent of all stock was retained by the league
other expenses have been paid. The capital stock rep­ exchange, a financial corporation organized under the
resents five per cent of the loans. This stock must be authority of the Nonpartisan league, and which Townsurrendered upon the payment of the loan.
ley, in testimony given in his bankruptcy case, says
The officers of the association are: Michael Toay, he controls.
president: Jacob Yeager, vice president and R. r !
Wolfer, secretary and treasurer.
NORTH DAKOTA NEWS AND NOTES.
The First National Bank of Sheyenne, N. D., has
WARNING AGAINST TOWNLEY BANKS.
been purchased by the League Exchange, which will
The following article was taken from a Bismark, hold 51 per cent of the stock and control the bank.
N. D., newspaper Sept. 19th :
The balance of the stock is held by the local farmers.
The North Dakota State Banking board officially The new officers of the bank are president, H. P. Haltook A. C. Townley to task for the organization by vorson, vice presidents, Iver Olson and R. O. Ostby,
himself of a chain of banks in North Dakota, control J. O. Severtson and Bertha Torkelson, tellers.
of which is retained, says the banking board, by a cor­
The Merchants State Bank of Richardson, N. D.,
poration controlled by Townley.
will erect a $40,000 bank building soon. It is to be a
The banking board resolution, sponsored by At­ two-story structure, the bank occupying the lower
torney General William Langer, supported by Secre­ floor while the upper floor is to be devoted to office
tary of State Thomas Hall and opposed by Governor rooms.
Lynn 1 Frazier, cites that the organization of the
The organization certificate of the Tower City State
banks, along the lines it is charged that Townley is Bank, at Tower City, N. D., was recently filed at the
personally operating, is inimical to the welfare of the office of the Cass county register of deeds in Fargo.
bank deposits guaranty fund and the farmers are urged The bank has a capital stock of $15,000 which is divi­
to scrutinize carefully any bank organization scheme ded into 150 shares.


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

The First National Bank of Northwood, N. D., is
just completing- some changes necessitated by the
growth of its business. They have enlarged their
quarters and instituted other changes for the better
handling of the business and the convenience of its
patrons. The building has also been redecorated both
on the exterior and interior.
Plans have been prepared for the erection of a
new tank building for the McGregor State Bank,
McGregor, N. D.
The Merchants State Bank of Richardson, N. D.,
will build a new bank building soon. The cost of the
structure will be about $40,000. It will be a two-story
building.
The Farmers and Merchants Bank of Aneta, N. D.,
will erect a new $12,000 building soon.
Articles of incorporation have been filed for the
Stockmen’s Bank of Marmarth, N. D. The incorpora­
tors are G. W. Conn, T. R. Kelly and W. J. Johnson, of
Amidon, N. D. Mr. Kelly, former cashier of the First
State Bank of Amidon, will be cashier of the new in­
stitution. The new bank will be the third state tank
in Marmarth.
The Mooreton State Bank of Mooreton, N. D., has
been converted into a national bank and is known as
the First National Bank of Mooreton. The capital
stock of this institution is $25,000.
STATE BANK OF BARTON.
The interest of the estate of O. I. Hegge, deceased, in
the First State Bank of Barton, N. D. has recently been
sold to J. R. Carley, cashier of the First National Bank
at Grand Forks, N. D., J. S. Ulland, president of the
Fergus Falls National Bank, S. J. Mealey of the State
Bank of Monticello, and W. A. Lilyquist and J. M.
Nash of Barton. The following officers have been
elected:
J. R. Carley, president; J. S. Ulland, vice-president;
S. J. Mealey, vice-president; W. A. Lilyquist, cashier;
J. M. Nash, assistant cashier.
THE ONLY DIFFERENCE.
As the millionaire climbed into his costly motor car,
a shabby little urchin rushed up and offered him a
paper.
“Get away!” he snarled. “I don’t want a paper.
Clear out!”
The newsboy stood fast and regarded the churlish
plutocrat with an amused smile.
“Aw, don’t get grouchy, governor,” said he, “the
only difference between you and me is that you’re
makin’ your second million, while I’m still workin’
on my first.”
COMBINED AVERAGE.
The actual to expected mortality of 65 companies
shows a combined average of 99.64 per cent for 1918.
The combined average of the same companies in 1917
was 56.77 per cent.—Eastern Underwriter.
ROSELAND BANK TO BUILD.
The Citizens State Bank of Roseland will build a
new banking building. It will be fireproof, 25x50, with
tile floor and expensive interior finish. There will be
two vaults, one for the bank and one for customers
where safety deposit boxes will be installed.


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Federal Reserve Bank of St. Louis

BANKER

63

CORN BELT PACKING
COMPANY
A. B. McCue, President.
DUBUQUE, IOWA
PORK AND BEEF PACKERS
Capital Stock $3,000,000.00
DAILY CAPACITY
2500 Hogs
200 Cattle
500 Sheep and Calves

This magnificent plant, covering 14 acres of ground,
is of the most modern and efficient construction,
located on the main line of the Chicago Great
Western Ry., with direct switching connections with
the Illinois Central, C. B. & Q. and C. M. & St. P.
railroads.
Shippers to the Corn Belt from Iowa and north­
western Illinois save freight and have no commis­
sions, yardage or terminal charges to pay.
The Corn Belt Packing Company is owned by ap­
proximately 1,500 Stock raisers, Farmers and Bank­
ers of Iowa. Its management is made up of men who
have had years of experience in the packing busi­
ness.
We extend to the Farmers, Stock raisers, Bank­
ers and others throughout Iowa and Illinois, a cor­
dial invitation to visit our plant, which is considered
by the best engineering authorities of the country
to be the most up-to-date packing plant in the
country.

T he
N orth western
Banker
Is the only financial journal
in America holding member­
ship in the Audit Bureau of
Circulation—the great nation­
al organization that takes the
“ bunk” out of circulation
statements. You are assured
real service.

64

THE

NORTHWESTERN

BANKER

October, 1919

A Hundred Years Hence
the w orld w ill still revel in
the beauty of Anna Case's voice
Yes, a century from now, when a new generation refers
singing in direct comparison with the

*°
Punitive days of 1918, the great diva’s superb voice
will thrill vast audiences. Thanks to the genius of

arc indistinguishable.

1711011113 A* 2(113011 ic 1113 beea R e p e a te d and preserved
in all its glory for our descendants. The men of to-morrow

ANNA CASB

will hear, not a mere imitation, you understand, but the
voice itself—pure, bubbling and spontaneous. For it has
been Re-Created on

Tie NEW EDI

**The Phonograph with a Soul **

This means that it has been Re-Created with such fidelity; so perfectly
and completely, that no human ear can distinguish artist from instru­
ment. The famous Edison tone tests have proved this beyond question.
Before audiences totaling more than a,000,000, great artists, stars of
Metropolitan Opera, have sung in direct comparison with their own
voices on the instrument. And not one listener has been able to
detect a shade of difference.
Come into our store tomorrow and hear Anna Case on the New Edison.

Harger & Blish, Inc.
“3 3 Y e a r s in th e M u s i c B u s in e s s ”

Des Moines


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Federal Reserve Bank of St. Louis

Sioux C ity

October, 1919

THE

NORTHWESTERN

BANKER

65

institution and from now on will have charge of its
SOUTH DAKOTA NEWS AND NOTES.
The Brule National Bank, of Chamberlain, S. D., affairs.
The First National Bank, of Farmer, S. D., has been
has changed its charter to that of a state bank and will
be known from now on as the Brule State Bank. The granted a charter. The bank is capitalized at $25,000.
C, E. Simons is president and C. W. Betts, cashier.
deposits of this institution amount to $750,000.
The First National Bank, of Davis, S. D., with a cap­
Harvey Kittleson, of Mitchell, S. D., has taken up
his duties as assistant cashier of the Farmers and Mer­ ital of $25,000 has been given a charter. Fred Boterchants Bank, of Plankington. Mr. Gerhard, Sr., has man is president and W. W. Wulf, cashier.
retired from active service and will devote his time
NEW SOUTH DAKOTA APPOINTMENTS.
to looking after outside interests.
Several changes and appointments are announced by
Luvern Eaton, of Alpena, has accepted the position
of assistant cashier in the Alcester State Bank, Alces- State Bank Examiner Hirning. Walter Ward of Pierre
has been appointed a member of the examining force
ter, S. D.
Lew Welch', of Mitchell, S. D., was elected secretary and will make his headquarters at Watertown; Alex
of the South Dakota Bankers, at a special meeting of Wosnux former chief clerk of the department goes onto
the Executive Council of the South Dakota Bankers the list of examiners. Ernest Jones, statistical clerk of
Association, to succeed F. D. Peckham, of Alexandria, the department takes the position of chief clerk and
who resigned. Careful consideration was given the Robert Jahrons takes the position of statistical clerk.
matter of providing protection for members against Jahrons is yet in the overseas service but is expected
to return at an early date.
the prevalent daylight robberies.
Articles of incorporation have been filed for the
SWAN SAVINGS BANK CHANGES HANDS.
Farmers Security Bank, of Valley» Springs, S. D. The
W. H. Wier, who has been cashier of the Swan Sav­
institution is capitalized at $15,000. The officers are
R. O. Jones, president, M. O. Monserud, vice president ings Bank, Swan, for the past eighteen years, has sold
the controlling interest to J. M. Light, paying teller
and A. C. Schrake, cashier.
C. W. Hose recently purchased the stock in the Lem­at the Commercial Savings Bank Des Moines. Mr.
mon State Bank, Lemmon, S. D., previously owned by Light has immediately assumed the management and
C. C. Siderius and has succeeded Mr. Siderius as presi­ with eight years banking experience will no doubt make
dent. Mr. Hose has assumed active management of the a splendid success of his new undertaking.
This department of T H E NORTHW ESTERN BANKER is
to assist SUBSCRIBERS in obtaining goods or service hard
to find. It is free. Use it. ASK US, as we can tell you
where to buy anything you need In your bank or for your
bank. T E L L US, as your “want” will be published under
the above heading free of charge. In answering classified
advertisements which have key numbers please enclose a
two-cent stamp. This is used to forward your letter.
For Sale—One set quarter sawed oak bank fixtures in fine
condition. Write for description and blue prints to the
Farmers and Merchants Savings Bank, Mt. Pleasant, Iowa.
8-9-10._____________________________________
Position Wanted —By young married man with a year’s ex­
perience in both city and small town banks, in a small bank in
the west. Can fill assistant cashier’s position. Best references
furnished. Address P. O. Box 731, Sioux City, Iowa.________
Want To Trade —400 acres Thayer County, Nebraska land,
for controlling interest in good country bank. Address Box
543, Geneva, Nebraska.
For Sale—A splendid set of mahogany and marble bank fixtures practically new and now in use, formerly used by Scandi­
navian American National Bank, Sioux Falls, S. D. Address
F, H. Johnson, P. Q, Box 925, Sioux Falls, S. D.—10.___ Wanted—Second-hand set, steel filing cabinets suitable for
standard size vault, country bank. Give full description of
what you have, lowest price. Address Osceola National Bank,
Osceola, Iowa.—10.______________________
For Sale—Set of second-hand oak bank fixtures, first class
condition, reasonably modern, ready for shipment November
25. Full description sent on request. Address Osceola National
Bank, Osceola, Iowa.—10.
____________'
Wanted —Position in bank by young man with several years
banking experience. Have had college education.
Would
prefer position as assistant cashier or teller in town of 2,000
or more. Address No. 2336, The Northwestern Banker,—10.
Position wanted by young lady with four years business ex­
perience, two of which were banking. Very good with post­
ing and adding machines, also handles typewriter.
Best
references. Address No. 2337, The Northwestern Banker—10.
For S a le — Practically new large steel bank safe, Chicago Safe
Company manufacturer.
Two heavy double reserve chests
with combination locks. Outside door with time lock and
automatic. %Apply to J. J. 'Deright Safe Company, 1212 Farnam
S tl Omaha, Neb.


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Federal Reserve Bank of St. Louis

Bank position wanted by returned soldier, five years ex­
perience in country banks and cashier’s experience with large
Investment Banking company.
Northern Iowa or southern
Minnesota preferred. Address No. 2339, The Northwestern
Banker.—10.
Wanted—Position as bookkeeper or assistant cashier in
country bank in Iowa. Eighteen months banking experience.
Excellent references. Address No. 2340, The Northwestern
Banker.—10-11.
Cashiership by live wire banker with eight years experience
as head of bank both National and State. Thirty-two years
old. Married. Speak German. Fine record and references.
Also would consider assistant cashiership in good live bank,
large town. At present cashier of $50,000 bank but looking
for a change of location. Minnesota, Iowa, or Wisconsin pre­
ferred. What have you to offer? Address No. 2341, The
Northwestern Banker.—10-11-12.___________________________
Wanted—Position as cashier in country bank, by young man
with eleven years banking experience. Married. Best refer­
ences as to character and ability. Address No. 2342, The
Northwestern Banker.—10.
Colonization opportunity. 6,000 acres in northern Minne­
sota. A large portion is heavily timbered with hardwood.
Price $15 an acre. Address, The Northwestern Banker No.
_________________________________________
2343—10.
Want to Buy— Banker wants to buy controlling interest in
country bank in Iowa. Information strictly confidential. Address No. 2344, The Northwestern Banker.—10.______________
A practical banker will buy a bank in the near future and
will build it up to its greatest efficiency and market value.
Tell me about yours for sale. Address No. 2338, The Northwestern Banker.—10._____ ________________ _______________
For Sale—Very good set of walnut bank fixtures, chairs and
desk, will make quick sale. Address Cherokee County State
Bank, Meriden, Iowa.—10-11.

66

THE

NORTHWESTERN

BANKER

October, 1919

Making Building Investment Safe
By N. F. Hoggson
Mr. Hoggson says the investor of money in a construc­
The financial interests
are total failures from the
tion enterprise should be guaranteed the ultimate cost of
which lend money on
investment standpoint.
the operation. He believes co-operation must replace the
building- operations have
The ultimate cost of the
old form of competition in the building industry.
made
it clear
that the re- .
.
.
.
a
average
v u a g t
building under
U l l U ’C I
vivai in building construction is quite likely for the . the usual competitive method is far in excess of the
f\r P C P H f
A f tiA r o n / > h f n o
h o irrh lfo
A n
______ M
* *
11
,
1
-r- i
•
«
present not
to reach the heights
expected. As
most __amount
originally contemplated. For instance, the
structures are erected on borrowed money, such an owner predicates the return on his investment on a
assertion demands serious consideration and analysis. definite sum of money; he arranges for his loan on the
The chief reasons given for the position taken by basis of what he expects his building to cost, and then
the financial institutions are: First, a belief in the in the end spends considerably in excess of that
possibility of lower prices of labor and materials, amount. To make the point clearer, let us reduce this
which will permit cheaper building with corresponding statement to figures:
rental competition in favor of the later erected build­
An investor decides to place $100,000 in a building
ings. Second, the failure of the usual proposed build­ enterprise. He has determined the fixed charges and
ing operation to safeguard the investment by properly the cost of upkeep, operation and depreciation. From
insuring the limit of cost, thus diminishing the gilt- his estimates he will net say six per cent. He proceeds
edge value of the loan.
with his plans; his ‘building is completed. Then he
The opinions expressed in the last few weeks by looks over his books and learns that his building has
those best fitted to judge
_________ ~________ not been built for $100,000.
would indicate that there is
It has finally run up to
very little chance for a long
“When a prospective building owner ap­
$133,000—33% in excess of
proaches a mortgage company for a building
time to come of prices of
what he has planned to spend.
loan, i<t is the general custom for that mortgage
building materials dropping.
His investment, therefore, in­
company to either designate whom the owner
What with the very short
stead of returning six per cent,
shall engage as architect or Insist that Its own
stock on hand and the tre­
architect shall pass upon the plans and specifi­
is reduced to 4 ^% .
cations. This is done so that the design and
mendous demand which our
This increase in the cost of
the
elements
entering
into
the
construction,
industries will face when
construction is modest, the
such
as
quality
and
permanency
of
materials,
building is resumed both here
average minimum, in fact.
shall be up to the standard required for the
and abroad, there is every in­
loan.”
Some time ago it was devel­
dication that prices will rise
oped through an investigation
before they seek a lower level.
by a large insurance company
We know that on account of the war, which stopped that ninety-six per cent of the buildings erected (among
immigration and the return of many aliens to their those covered by the investigation) had cost the own­
own countries, labor here is short 2,400,000 men, and ers from thirty-three to fifty per cent more than they
that if there is no immigration for another four years, anticipated. A difference of this amount is very often
as, in view of the necessary rebuilding in Europe, the margin between success and failure in building
seems likely, then we shall no doubt find a shortage operations.
of labor in our country which will not be conducive to
Now the mortgage companies may be somewhat
the lowering of wages.
surprised to learn that they are not wholly blameless
The last reason, dealing with the failure to safeguard in this-matter, .and that they are complaining about a
the investment, leads to the query: Are buildings condition which it is to some extent in their power to
erected under the usual competitive method generally remedy.
unsafe investments? A large percentage of the struc­
When a prospective building owner approaches a
tures erected under the ordinary method of building mortgage company for a building loan, it is the general
are not satisfactorily productive and many of them custom for that mortgage company to either designate
u

t

1

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

AMERICAN FIXTURE COMPANY
Kansas C ity , Missouri

N e w Building
Fixtures

C O M P L E T E E Q U IP M E N T F O R B A N K S
D ecorations
Floors
Furniture
R em odeling
Lighting
Interior W o o d w o rk

ÜillUIIUIIUmUlllUlltUUIIIIIIIIIlllllIlUllllllllUllUIIUIIIIIIMIIIIIIIIIIIIIIIIlillIlUlllIlllllllliuiiiiiiiiiiiiiiiiiiiiiiiiim


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Federal Reserve Bank of St. Louis

October, 1919

THE

NORTHWESTERN

whom the owner shall engage as architect or insist
that its own architect shall pass upon the plans and
specifications. This is done so that the design and the
elements entering into the construction, such as
quality and permanency of materials, etc., shall be up
to the standard required for the loan.
For reasons quite similar the contractor chosen by
the owner must be acceptable to the lender of the
money, for upon the ability, sincerity and integrity of
the contractor often lies the success of the investment.
Seemingly every effort is made to protect the invest­
ment both of the owner and of the mortgage company.
But, in reality, no definite step has been taken to
insure the owner against an amount of expenditure in
excess of the original cost. In other words, precau­
tions are taken to apparently protect an investment
which is really left unprotected.
The architect is not responsible for the cost of the
building; the contractor working under the direction
of the architect is not responsible as to the final cost.
When the final cost does exceed the estimate, the own­
er’s investment depreciates and the loan of the mort­
gage company is placed in jeopardy.
These facts, while they may seem startling, are
neither new nor unrecognized. They exist because of
custom—because under the usual form of building
procedure there is no one directly responsible finan­
cially to the owner in the matter of cost. The fault lies
with the system which has its basis competition—
competition in one phase or another between architects
and open cut-throat competition between contractors.
The old axiom “Competition is the life of trade,”
formerly a trade slogan, is passing, it is hoped, into
oblivion forever, with many old-established precedents
and customs. “Co-operation to the utmost” may well
take its place in the new evolutionary process.
The government has demonstrated during the past
two years just what co-operation means, and how or­
ganization can accomplish definite and satisfactory
results. It took but a second or two on the part of the
public, for instance, to change the entire time and
working hours of millions in this country during a
given period last year, yet the result in the saving in
light and power was enormous.
A well-known writer recently wrote:
“Co-operation in business bears to commerce the
same relation that direct legislation bears to the gov­
ernment. When the ‘People’ know how to conduct
business on the basis of co-operation they will know
how to organize and administer the commonwealth.”

BANKER

67

N o tic e y o u r c o rre s ­
p o n d e n c e . All y o u r
b u s in e s s frie n d s u s e
th e C L IP L E S S .
E ith e r
m a c h in e
d e liv e re d

$3.50

CLIPLESS PAPER FASTENER CO.
NEWTON, IOW A

Let U s Help Y ou S olve
Y our V a u lt Problem
O ur sectional Steel V au lt fixtures
are n o t expensive. A sk o u r sales­
m en o r w rite us.
M a n y b an k s h av e fou n d th e solu­
tio n of a n overcrow ded v a u lt in th e
U n d erw riters M odel of th e SafeC abinet.
LET US INSTALL ONE FOR YOU

MESSENGER PRINTING COMPANY
PRINTERS—BINDERS—STATIONERS

Fort Dodge, Iowa

P O S T IN G M A C H IN E S U P P L IE S
LEDGER SHEETS

STATEM ENTS

We use Weston’s Typocount Ledger Paper
made exclusively for machine bookkeeping. It
has a firm texture, will stand up in the binder,
and its surface is exactly right for machine
writing. Buff color. Send for samples to test
out.

These do not require as good a paper as the
ledger sheets—still, they must not be too flimsy.
The paper used for our statements is a good
quality, buff color, and has been given a
thorough test. Special prices on large quanti­
ties. Send for samples.

HAMMOND PRINTING GO


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Federal Reserve Bank of St. Louis

BANK SUPPLIES

FREMONT, NEBR.

THE

68

NORTHWESTERN

PLAY SAFE!
It is better to be safe the night before than
sorry the morning after, Insurance policies
may replace a loss in dollars and cents, but
they can not protect records which take years
to create and which only time can restore.
P ro tect Your R eco rd s
W ith

THE
SAFE-CABINET
It is the pioneer steel safe—
the safe that gives you larg­
est capacity in proportion to
floor space used, with filing
cabinet convenience. It is
the safe that has always
shown advanced design and
improvements.
I t is the safe th a t carries the label
of th e U nderw iter’s Laboratories,
giving you absolute protection
against fire and th eft.
There is only one Safe
Cabinet-—do not confuse
the genuine article with the
many light steel safes on
the market. The method
of insulation is patented.
You can get Safe Cabinet
protection only in the Safe
Cabinet.

t

314 SeventhStreet^

DES MOINES

ESTABLISHED 1856

BANKER

October, 1919

Co-operation must rule a building operation, Mr.
Hoggson insists, in order that the owner may be pro­
tected in his investment and the financial institutions
protected in their loans.
The matter is resolved into guaranteeing to the
owner in advance the ultimate limit of cost of his
building project, and vesting the control and responsi­
bility for the successful outcome of that building pro­
ject in one authority—one trustworthy building con­
cern.
For complete success in our new industrial renais­
sance, co-operation must inevitably take the place of
competition in building construction as well as in all
other lines of industrial endeavor.
The owner should have to enter into only one con­
tract covering his building operation complete. Such
a contract should include the architectural services as
well as the construction, equipment and furnishings of
the building, ready for occupancy. The contract should
stipulate and guarantee with bond the full limit which
the completed building will cost.
This procedure will do away with extras and their
incidental profits, eliminate responsibility for disagree­
ments and disputes between sub-contractors, econ­
omize in time and material, and will insure the figured
rental return necessary to protect the investment. The
contract should further provide that if the cost exceed
the guaranteed price, the builder should bear the loss;
but if, on the other hand, the final cost is less than the
prescribed amount, the owner and builder should share
in the savings.
Furthermore, the limit of the builders’ possible
profit should be stipulated in the contract. All of this
may sound radical—even revolutionary—yet such a

The “SATELLITE”
i

Iowa
LithograpIling
Company

Is The Stenographer’s
Favorite
S te n o g ra p h e rs lik e th e “S a te l­
lite ” ty p e w rite r s ta n d b e c a u se of
its a d ju s ta b ility . Y ou c a n r a is e
a n d lo w e r o r t u r n t h e to p
a r o u n d to a n y a n g le . S e t
sc re w s m a k e c h a n g e s in ­
s t a n t l y . T h is m a k e s m o r e w o r k p o s ­
s ib le w i t h l e a s t f a t i g u e .
Office m a n a g e r s l i k e t h e “S a t e l ­
lite ” b ecau se it sa v e s space. B ecau se
i t is a l l m e t a l e x c e p t to p a n d t h e r e ­
f o r e fire p r o o f . A ls o b e c a u s e i t is o n
c a s t e r s a n d is e a s i l y m o v e d f r o m
p la c e t o p la c e .

D E S M O IN E S

EXPERIENCE
Q U A LITY
SERVICE

30 D a y s F r e e T r ia l.
T r y t h e “ S a t e l l i t e ” f o r 30
d a y s f re e . W e p a y c h a r g e s .
R e t u r n a t o u r e x p e n s e if
n o t s a tis fa c to ry .

Our folder giving particulars and prices
on request.
GEO. H. RAGSDALE, . . .
E. G. RAGSDALE, . . . .
H. B. RAGSDALE, . . . .


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Federal Reserve Bank of St. Louis

President
Secretary
Treasurer

Adjustable Table Co.
Grand Rapids, Mich, vemonst.
Eastern Representatives: CONDON & CO., Fifth Ave. at 23d St.
NEW YORK CITY

October, 1919

THE

NORTHWESTERN

BANKER

Wrot Iron Heaters are Made in 12 Styles and 79 Sizes—Pipe and Pipeless.

THE LARGEST—THE HEAVIEST—THE MOST POWERFUL AND DURABLE VERTICAL
WARM AIR HEATER EVER BUILT!

P o w er-P lu s System
Insures an unlimited volume of pure, moist
warm air—genuine Health Heat.
The Power-Plus is a great waterless boiler
that does away with radiator dirt,, leak­
age and pounding.
Ideal for large homes, schools, churches and
other public buildings.
W rite for Power-Plus book.

The Donald B. Howard Heater Co.
Successor to the W r o t Iron Heater Co.
1 0 1 2 M u rp h y Street, D E S M O IN E S , I O W A


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Federal Reserve Bank of St. Louis

69

70

THE

NORTHWESTERN

BANE OUTFITTERS
EVERYTHING
From a Bank Pin to a Bank Safe
Railings— Bronze, Marble and Wood.
Safes— Bomb Proof, Burglar Proof and
Fire Proof.
Vault Doors and Deposit Boxes.
Machine Bookkeeping Systems.

Printing— Lithographing.
Checks— Check Book Covers and Pass
Books.

Complete Bank Supplies

Office Equipment and Supply Co.
LATSCH BROTHERS
117-119 S o . 12 S t.

LINCOLN, NEBRASKA

BO YD & M OORE
A r c h ite c ts

Banks and Public Buildings
315 S e c u r i t i e s B u ild in g

Lawn Tents
Camping
Tents, Awnings
DES MOINES TENT
& AWNING CO.

D E S M O IN E S . IO W A

BANKER

October, 1919

method of building has been in operation and followed
successfully and satisfactorily both to owner and
builder for many years.
For the building industry to meet its possibilities in
the future it must relegate competition to the back­
ground ; there must ibe the utmost confidence and co­
operation between owner, architect and builder. When
the owner’s interests are protected by fair and proper
building contracts, there will be required no more
effort to secure a temporary or permanent building loan
from our financial institutions than we ordinarily en­
counter in seeking loans on gilt-edge bank collateral.
MEETING NEW BUSINESS AT THE TRAIN.
(Continued from page 7.)
officer may not be fully posted as to the extent of that
party’s transactions with the bank. He goes to the file,
or sends for the card and produces instantly all of this
valuable information.
The next step was to tone up the working force. We
have twenty employees including the active officers.
We stafted with a “get together” dinner. Then we
have a meeting each Wednesday morning, from 8:00
sharp to about 8 :40. Here we discuss things affecting
the efficiency of our work, as well as to hear talks on
bonds, insurance, the handling of estates, etc.
We have a blackboard for illustrating examples,
when desirable.
We have a “Four Million Club” among the em­
ployees, the idea being to make a special drive to
get four millions in deposits by July 1st of next year.
Each of us wears a little four million club button.
Then we established a study course, first using an
excellent series of questions and answers sold by
Brother Morehouse. We later worked out our own
questions. I believe this study course did more than
anything else to knit the organization together and
arose a competitive spirit among them. We had cash
prizes for the best ratings. I was the school master,
not by choice or training, but by force of circumstances.
And all of us, including the officers, soon found how
little we really knew about the banking business and
in particular about things which come up from day
to day.
Then we divided the force into two teams and had a
contest for new accounts, with cash prizes amounting
to $100 and a side bet of a big dinner to be given by the
losing side. We have just finished another contest in
which two of the officers lined up against the other 18
of us—and the two officers won. The accounts secured
in the first contest averaged $700 each and in the
second contest $500.

BETTER BANK BUILDINGS
W e have evolved the best and m ost economical m ethod for th e design, construction and
equipm ent of your new banking home. W e are A rchitects of m any years experience in bank
work, know your problem s, and are prepared to help you solve them . L et us show you how.

THE W. W. BEACH COMPANY
Engineers

ARCHITECTS
SIOUX CITY, IOWA
Better Buildings in Less Time at Lower Cost


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Federal Reserve Bank of St. Louis

Builders

October, 1919

THE

NORTHWESTERN

BANKER

A re Farm Buildings Going
Up in Your Banking Territory?
The Best Interests In Every Farming Community
D e m a n d T h a t B u i l d i n g Be A c t i v e N O W !
As a banker, interested in all th a t p ertains to th e welfare of th e com m unity,
ask yourself w hether farm er clients are a t present active in p u ttin g up new farm
buildings and homes.
If it is the case that the farmers in your neighborhood have money, need new farm build­
ings, but are not building, look for the reason. You will discover that it is—

AM istaken Belief That “Building Will Soon Be Cheaper”
It is a mistake to hold, in the case of build­ for lumber. American building is far behind
ing, that “what goes up must come down.” normal because of the war. European building
The law of supply and demand is at work. The is not only behind because of failure to keep up
supply of standing timber in the United States with normal but, in addition, faces the gigantic
will be largely exhausted within the next twen­ task of reconstruction. Th*e net result of it all
ty years. Our own building needs would ac­ is that underlying conditions must continue to
complish this. But besides the need we have increase building costs.
for our own timber, Europe is looking to us

Point Out The Facts
To Farmer Clients
When you are asked by a farmer whether he
should build now or wait, give the facts. They
are such that they only need pointing out to be
understood. Your effort in this direction will
save your clients money. Furthermore, this
is a time of prosperity when the farmer can
best afford to build. And in giving the farmer
sound advice as to BUILDING NOW you pro­
mote the general welfare by inspiring improve­
ments that increase farm values.

Two Ways We Can
Cooperate W ith You
First, we can help your clients hold down
building costs. Gordon-Van Tine homes and
farm buildings are delivered all ready to put
up. They avoid waste—of materials and labor.
Second, besides economy, our big reserve
stocks prevent the delays in getting materials
which so many people are experiencing. Our
service to nearly 200,000 customers throughout
the country is fully explained in literature
which we shall be glad to send you or your
clients upon request. As a banker, we are sure
it will interest you.

Gordon-VanTine Co,
Satisfaction Guaranteed or Money Back
R e s o u r c e s O ver $1,000,000.00

6997 Case St.


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Federal Reserve Bank of St. Louis

E sta b lis h e d O ver H alf a C en tu ry

REFERENCES: A n y B a n k i n D a v e n p o r t. C o n tin e n ta l
a n d C o m m e r c ia l N a tio n a l B a n k , C h ic a g o , 111.
N a tio n a l C ity B a n k , N e w Y o r k C ity

Davenport, Iowa

71

THE

72

NORTHWESTERN

TYPEW RITER FURNITURE
B yron Cost-R educing
Usually found in the “ Better Class” banks
and offices, where time has value and folks
are really down-to-date and progressive.

Saves time, labor, stationery,
floor space, increases output and
GREATLY REDUCES COSTS
Patented.
Made in Michigan, the home of high class office Furniture
INSTALLED OVER 500 BYRONS, IN 500 “BETTER CLASS BANKS’
FROM ILLINOIS TO CALIFORNIA.
THERE'S A REASON

T h e Freem an C om p an y
Exclusive Western Sales Agents and Distributors
Minneapolis Office: 901 Marquette Ave. S .

Home Office: Cogswell, N. 0.

Let Us Quote You on Any Job You Have in Mind
The largest exclusive supply house in Iowa.
Ruled goods, loose-leaf goods, bound books made to
order and in stock.
Bankers write us for sample of our loose-leaf combined draft, certificate, cashier’s check, discount and
collection register sheets.

Le Mars P rillim i Company
Checks
Drafts
Certs

Pass
Books
Check
Covers
Binders

Mason City. Iowa
We guarantee ten-day delivery on any order.

BANKER

October, 1919

Then we have a bulletin board where I try to get
over ideas, suggestions, gentle criticisms, etc., to the
whole force, instead of having to talk these things over
with each individual.
Then we offer three prizes monthly for the best sug­
gestions relative to improving the service of the bank,
mechanical efficiency, etc.
We have a time clock, which is of help in many
ways. For instance, in order to speed up our window
service at noons, and not have so many windows
empty, we pay our people 33c towards each day’s
lunch, where they take 30 minutes or less. This gets
them out of the bank earlier in the afternoon and while
it costs $125 per month, it is well worth it. The time
clock is the deciding factor as to who is entitled to
lunch money and how much. Sufficient to say that
every one of us collects, every day.
After a careful analysis, based on a cost system plan,
we found that much of our checking business was of
the “small fry” sort and that every account with less
than a $50 daily balance cost us a net loss of $5.20 per
year. In other words, every one of these accounts had
the jump on us from the start and we could never
catch up.
So without the co-operation of the other banks, we
started a charge of 50c per month on every account
that fell under the $50 dead line. It was said we would
lose all of our business and twice that much in good
will.
Did we? We did not. We eliminated 750 unprofit­
able accounts so far and yet have more than ever
before. Some customers pay the 50c charge. Every
month we go through the commercial ledgers and
transfer to the savings department several score of
small accounts. We write these people a nice letter
stating we made the transfer in order to save them the
50c charge and that now their money would earn them
4% interest instead. A very few come in and draw
the funds so transferred but most of these accounts
stick—and many increase substantially.
We do everything possible to speed up service at
our ten windows. We not only wrap new one and two
dollar bills in special $5, $10 and $20 wrappers, but we
keep old ones and twos wrapped in 25’s as well as 50’s
in order to wait upon more quickly the local merchants
who come in so often during the day for change.
Then we have a lobby man who plays a big part in
keeping the lobby cleared up. He is 79 years old, a
vice-president of the bank and I suspect draws as much
or more money than the average country bank official.

Your Chance
We always have in our possession several sets of second­
hand bank fixtures which we offer at so low a price that you
can always dispose of same without a loss to you. If you are
opening in a temporary building, or even for permanent use,
these will make splendid fixtures at about one-third cost of
new equipment. Get the description of these outfits—it is
worth your while.

McNamara-Kenworthy Co.
Des Moines, Iowa.


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Federal Reserve Bank of St. Louis

THE

October, 1919

NORTHWESTERN

BANKER

W e Build Efficient Banks
Here are a few of the Banks we have served during the past year—all good ones, live in ­
stitutions that are rendering better service to their communities in Lytle designed homes.
First National Bank, Maquoketa, Iowa
First National Bank, Valley Junction, Iowa
First National Bank, Inwood, Iowa
First National Bank, Wessington Springs, S. D.
Perry National Bank, Perry, Iowa
Brown National Bank, Jackson, Minn.
Citizens National Bank, Norfolk, Neb.

Farmers Savings Bank, Roland, Iowa
Calhoun County State Bank, Manson, Iowa
Calumet State Bank, Calumet, Iowa
Cherokee County State Bank, Meriden, Iowa
Terril Savings Bank, Terril, Iowa
Security Trust and Savings Bank, Storm Lake
Liberty State Bank, Thurston, Neb.

Let us design and plan your building this fall so that you will be able to place contracts and
orders for labor and material during the winter months, w ithout being rushed. The materials
can he purchased cheaper and the building pushed to completion when spring opens.

T H E L Y T L E C O M P A N Y , S io u x C ity , Io w a
J. A. RAVEN, President
Architects and Engineers of Complete Bank and Office Buildings


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Federal Reserve Bank of St. Louis

73

74

THE

NORTHWESTERN

SAFE DEPOSIT BOXES

I llu s t r a t in g

48-BOX U N IT
(S e v e r a l o th e r s t o c k s iz e s )

IM M E D IA T E D E L IV E R Y
W r ite fo r c o m p le te c a t a lo g a n d p r ic e s , s e n d in g u s
d im e n s io n s o f y o u r v a u lt a n d t h e n u m b er o f b o x e s r e a u lred .
DEALERS
WANTED

j Si J g ? J H j F
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s t e e l e q u ip m e n t
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AGENTS
WANTED

CLEVELAND (2031 Euclid Ave.) OHIO

-Peailse; Robinson,-And-Sprague * Landscape Architects And Architects *
703 Youngerman Building, Des Moines, Iowa

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BANKER

October, 1919

Previously in the wholesale grocery business, an ex­
mayor and ex-other political positions, he knows every­
one, their children by name, and every kink in every
dog’s tail, so to speak.
Just picture the bashful old country lady, coming in
to cash a check, about which she knows all too little.
She is scared of the marble fixtures, the shiny brass
railings, the big steel vault doors, etc. But old “Mayor”
as we call him, assists her to a seat, bends down and
courteously inquires her wishes, gets her to endorse
the check where she is sitting, goes over to the window
to get the money, brings it back and counts it out to
her carefully and audibly, inquires about her children
(whom he of course knows), etc. And I leave it to
you, as to where that woman deposits her money or
what bank she recommends to her friends and ac­
quaintances.
Now another word about this lobby service. We all
have our troubles with advertising solicitors, supply
salesmen, etc., but our “Mayor” catches all of these in
our lobby, finds out‘who they should talk to, etc. The
salesman may not get an order but he appreciates this
courteous treatment and nearly every one that comes
into my office leaves one or more valuable tips that
enable me to secure business.
Spe'aking about tips, every employee and officer has
a “Tip Pad” right before him, and makes an effort to
send in one or more a day to my department. We keep
a record of each employee’s efforts along this line, for
reasons explained later. Let us presume a teller learns
that Bill Jones, living 18 miles out, is going to sell his
farm and move to our community. Through the real
estate men I learn where he is going to live and as soon
as practical make a personal call if possible. Pre­
viously I had written him a letter welcoming him to
our community. Now he gets further letters and
literature.
Then of course the local transfer men give me a list
of the new residents whose household effects they
move, tell me whether the furniture looks good or not,
etc. Other tips are picked up by watching the daily
papers and subscribing to nearby papers for the same
purpose. Then our outside insurance man picks up
lots of tips for banking and bond business.
We now contemplate establishing an agricultural
department with a former county agent at the head
of it, at a good salary, in order to obtain .more business
from the farmers, buy and sell farm property, etc.
This year we started a pig club on the endless chain
plan, which promises well. We also offered sub-

WILL A. BEACH PRINTING COMPANY
SIOUX FALLS, S. D.
C O M P L E T E B A N K A N D OFFICE O U T F IT T E R S

Printers—Book Binders—Stationers—L ithographers
Bank Safes, V ault D oors and S afe-C abinets and O ffice
Furniture
W e Have the Only Lithographing Plant in South Dakota
We Occupy Our Own Building
Corner Phillips Ave. and Seventh St.


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Federal Reserve Bank of St. Louis

Send Us Y our Wfork

October, 1919

THE

NORTHWESTERN

stantial prizes in this pig club, as well as in the can­
ning, tomato and potato clubs.
We have been paying our employees a bonus of 10%
of their yearly salaries, in order to help them meet the
high cost of living. This year we have paid them 5%
to date, but from Tuly 1st the bonus system was sup­
planted by a profit sharing plan, that will provide
for distribution a fund equal to about 15% of their sal­
aries. This profit sharing fund will be distributed
under a graded scale arrangement, according to the
different, occupations—'for ability to produce business,
to hold business, accuracy, courtesy, loyalty, etc. This
will enable those who work hardest for the bank to
share in a larger proportion than the less diligent ones.
We have today over 7,000 savings accounts, as
against the 4,500 a year ago, half of which increase is
attributable to a campaign of personal solicitation, in
connection with the small home savings bank, etc.
Our checking accounts average far higher balances,
as a result of the 50c charge and the 3% interest plan.
We now have over 1,200 with an average daily balance
of $1,100.
We originated a plan of accepting Liberty bonds as
deposits on savings accounts, which brought us many
hundred new customers and much additional business.
We now buy Liberty bonds at face value, issuing a
three year 4% certificate of deposit therefor. Deposits
that are guaranteed to stay at least three years are
the kind we are all looking for. Under this plan the
customer gains, while the bank does not lose, I assure
you.
WHAT IS TH E A. B. C.?
The Audit Bureau of Circulations is an Association
of reputable publishers who are cooperating with ad­
vertisers and advertising agencies to standardize circu­
lation data, place the buying of space on a basis of
“known value,” and discountenance practices inimical
to the interests of the advertisers.
The bureau was established in 1914 and now num­
bers among its members the majority of honorable
publishers in the United States and Canada. Its
board of directors is composed of 11 national adver­
tisers ; 2 advertising agencies; 2 newspaper, 2 maga­
zine, 2 farm paper and 2 trade paper publishers.
Twice a year the publisher makes a report to the
bureau showing total circulation and details of distri­
bution by states, cities, towns, suburbs and rural dis­
tricts ; also subscription rates and facts about contests,
premiums and club offers. Once a year these state­
ments are audited by one of the bureau’s experts.
•

•

•

{
j

4

A c o rn
P u b lic Sale Registers

•

{
{
4

? eliminate the possibility of errors in clerking farm and stock f
• sales. Allow quick and accurate settlement with the cus- i
l
tomer at any time. One man says: “Ialways go home ?
f with the auctioneer.” Used by more than 3,000 f
i bankers in Middle West. Trial package, containing one |
s each of six styles,value$1.50,postpaid for 75c.
|
4

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A c o r n P rin tin g C o m p a n y

f Dept. N.


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Federal Reserve Bank of St. Louis

Oakland, Iowa f

BANKER

Modern Fisher
Bank Interiors
Are Profitable
Investments
A wave of building activity is sweeping over
the country. Old banks are being modern­
ized and new homes erected. Fisher service
represents the combined experience of half a
century devoted to designing and equipping
banks for most efficiently meeting the demands
of the hour and assuring constant growth.
Our experts will gladly co-operate with you
in designing the interior that will enable you
to render the highest type of service to your
customers. An inquiry involves no obligation.

A F E W R E C E N T F IS H E R JOBS
S to c k m e n ’s S ta te , F a i t h , S. D.
F a r m e r s S a v in g s , H a n lo n to w n , I o w a
P e o p le s S a v in g s , M a re n g o , I o w a
H a r t i n g t o n N a tio n a l, H a r t i n g t o n , N eb .
F i r s t N a tio n a l, F u ld a , M in n .
S e c u r ity S ta te , W a s e c a , M inn.
A s to r i a ¡State, A s to r i a , S. D.
W e lls N a tio n a l, W e lls , M inn.
D o lla r S a v in g s , N ile s , O hio.
C o rn B e lt N a tio n a l, S c o tla n d , S. D.
W in n e b a g o S ta te , W in n e b a g o , M inn.
C ity N a tio n a l, M a so n C ity , I o w a

W rite us today

The Fisher Co.
Formerly the Fisher-Morris Co.
CH A R LES C IT Y , IO W A

75

76

THE

NORTHWESTERN

BANKER

October, 1919

RUBBER TIRE INBUSTRY BEVELOPS
RAPIBLY IN THE MIDDLE WEST
- (From the New York Commercial, September 16,1919)
I n m a k in g a n e x h a u s tiv e stu d y o f in d u s tr ia l a n d fin a n c ia l co n d itio n s in A m e ric a n
c itie s T h e N ew Y o rk C o m m ercial w a s a c tu a te d b y a d e s ire to g iv e its r e a d e r s re lia b le
a n d u p -to -d a te f a c ts c o n c e rn in g g r e a t a c c o m p lis h m e n ts in v a r io u s lines. T h e m o st
p a in s ta k in g c a r e w a s e x ercise d in th e w o rk of s e c u rin g th e d a ta , a n d th e in fo rm a tio n
a s p re se n te d is, w e believe, s u b s ta n tia lly c o rre c t.

Few people realize the full extent of
the great prosperity that feigns in
some of the agricultural regions of
the West at the present time. This is
particularly true of the States in the
corn belt. Splendid crops and high
prices have poured the golden dollars
into the coffers of the farmers in such
volume that the full value of farm
lands is appreciated today as never be­
fore.
Iowa is now in the midst of the great­
est agricultural land boom in its his­
tory. Many farmers have seen their
lands rise in value from $190 to $250
an acre in two years, and the end is
not in sight. Today land is changing
hands faster than it has ever changed,
and real estate men say there are two
buyers for every tract that is for sale.
Frequently the same farms are bought
and sold three or four times a month
by different persons, and each time the
price is boosted from $25 to $50 an
acre. A good many purchases are made
for speculation, no doubt, but many
farms are being bought because the
purchasers want a home. Hundreds of
tenant farmers are now buying farms.
Real estate men are predicting the
best grade farm lands will sell for $500
an acre next spring, and the second
class land will bring from $350 to $400
an acre. No one regards the present
boom as a bubble, for everybody seems
to think that prices of land have here­
tofore been too low.
The reasons for the extraordinary
advance at this time is that the farm­
ers have been acquiring cash for high
prices of their crops and livestock.
The tenants have sold their products
at prices that enable them to make a
good first payment on farms of their
own, while the owners, in many cases,
have invested their money in stocks
that have made handsome profits.
Every progressive farmer has made
money during the past few years and
unbounded prosperity prevails.
But what about manufacturing con­
ditions in Iowa? The answer is that
practically every well established cor­
poration is prosperous. There are
some over-capitalized enterprises in the


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Federal Reserve Bank of St. Louis

state that were organized solely for
stock selling purposes which are ex­
ceptions to the rule. But the wand of
prosperity, combined with businesslike
methods, have frequently worked won­
ders for enterprises whose births
were conceived in the brains of pro­
moters who knew the possibilities for
riches in corporate organization.
As a general proposition the pro­
moter is more concerned about the pro­
fits he can make from selling stock
than the dividends that will be paid to
the stockholders when the corporation
is fully organized and in operating con­
dition. He is frequently the only man
who makes any money in such a ven­
ture, and yet there are some conspicu­
ous instances where the promoter with
his get-rich-quick idea laid the founda­
tion for a manufacturing enterprise
that subsequently became highly pros­
perous and paid large dividends to
every man who invested in its stock.
This, however, was not accomplished
as a result of any managerial ability on
the part of the promoter for he had
gone to greener pastures when mat­
ters began to look serious. Men who
knew successful business and its es­
sentials took hold of the affairs of the
corporation and brought order out of
chaos with commendable alacrity.
It was by accident that I came across
an interesting illustration of the truth
just mentioned while attending the
Iowa State Fair at Des Moines. Having
recently spent several weeks studying
the wonderful development of the rub­
ber industry in Akron, Ohio, I became
much interested in an exhibition of
part of the tire making process in Ma­
chinery Hall at the Fair. It was, in­
deed, the most unique rubber tire ex­
hibit ever shown to an assemblage of
agriculturists and a great crowd of
farmers watched the tire builders
with much interest.
“I was the first man to invest $5,000
in the Hawkeye,” said a prosperous
appearing farmer.
/ ‘Has it been a good investment?” I
asked.
“At first I was badly scared,” he re-

plied, “but I could sell out today for
$12,500.”
“Evidently the enterprise is a suc­
cess,” I remarked.
In company with S. D. Henry, pub­
lisher of the Coon Rapids (Iowa) En­
terprise I visited the Hawkeye Tire
and Rubber Co. factory the following
day. Mr. Henry had purchased stock
in the company on three previous oc­
casions and evidenced his confidence in
it by making another $1,000 purchase.
It was during this visit and subsequent
talks with Des Moines bankers that I
learned of the precarious condition of
the enterprise during its early days,
and the methods pursued to place the
corporation on a businesslike basis.
In its inception the Hawkeye Tire
and Rubber Co., was a stock selling
proposition. Fortunately for the stock­
holders, however, the promoters had in­
duced men of ability and business in­
tegrity to become members of the
board of directors. These Western busi­
ness and professional men had never
seen a rubber factory and knew abso­
lutely nothing about the details of tire
manufacture, but they realized the re­
markable development of the automo­
bile and knew that it must be accom­
panied by an enormous demand for
tires. Moreover, they knew that there
is a limitation to the milking process
of promoters if stockholders in a cor­
poration are to see their money again
and they well knew that success de­
pends more upon action than promises.
The promoters had used the names
of these gentlemen with reckless aban­
don and hundreds of investors had gone
into the enterprise because of the fact
that these directors would have a voice
in the management. When the organ­
ization mists began to rise the offi­
cials got the first clear prospective of
the actual situation, and the view aston­
ished them. They had been drawn into
waters that seemed likely to engulf
them and the reputation they had built
up through years of struggle was in
danger of being demolished in a day.
There was no other alternative than to
get behind the new enterprise both fin­
ancially and morally in order to avoid
being discredited among merchants

October, 1919

THE

NORTHWESTERN

BANKER

are seldom made. The days of experi­
ment are "over and processes and prod­
ucts are standardized so that economy
It was with mingled feelings of hope in the highest sense governs every de­
and confidence that John T. Christie tail of manufacture and distribution,
and C. B. Hextell at first undertook to with a result that a product can be
pilot an unknown barque upon the an­ economically placed on the market that
gry seas of American commerce. They gives absolute
satisfaction. The
possessed the enthusiasm of youth and achievements of these men are shining
the characteristic energy that domi­ examples of what can be accomplished
nates western business men and in a in this country when enthusiasm, abil­
spirit of commendable determination ity and integrity dominate. The suc­
they went to their task. The more they cess of the Hawkeye Tire and Rubber
studied the proposition the more they Company during the past three years
realized its possibilities and in a short may be attributed solely to these at­
time these two crusaders in western tributes, and the ideals of the officials
rubber manufacture were among the and the board of directors is well
most enthusiastic tire builders in worthy of study by every aspiring
America.
young business man.
Many people formerly believed that
It was not long, however, before a
dark cloud appeared on their horizon. a satisfactory tire could only be made
The new concern needed more money in the Akron district. It was supposed
since the amount supplied by the stock­ that all of the mechanical ability worth
holders had been expended for equip­ having was tied up in some way with
ment, raw material and necessary ex­ the big companies of Ohio. People
penses in launching the industry. They have even stated that the peculiar
appealed to the local banks and soon character of the water in Akron is
found unexpected obstacles. None of admirably adapted to stimulating
the bankers knew anything about the toughness in the rubber as it passes
rubber business and financiers from through the stages of manufacture
whom they expected temporary aid de­ wherein water is a necessary element.
clined to make any loans. Finally other We now know that this is not true. A
bankers were appealed to—men who good tiremaker will go anywhere if
were willing to pin their faith upon the the inducement is satisfactory. Give
integrity of the management and the him mechanical equipment of equal effi­
board of directors, with the result that ciency and he will make as good tires
they not only loaned the institution the on the Island of Yap as in the busy City
needed money but gave the officials of Akron. He does not care about the
encouragement by promising moral chemical analysis of the water he uses
support. Then the skies began to so long as there is an abundance, and
brighten and the path to success be­ whether it comes from the Ohio or the
Mississippi is a matter that gives him
came clear.
no concern.
That was three years ago. Today the
The necessary factor for building a
Hawkeye Tire and Rubber Company
is admittedly one of the most promis­ good tire can be procured in Iowa
ing manufacturing institutions in Iowa. just as well as in Ohio, and the success
The reputation of the excellence of its of a rubber manufacturing enterprise
product has been established, the effi­ will always depend more upon the qual­
ciency of the management has been ity of the raw material, the efficiency
proven and the stockholders are get­ of the organization and the marketing
ting big dividends. Moreover, the orig­ conditions than upon the location
inal investors realize that their stock is where the plant happens to have been
worth nearly three for one what they built.
paid for it.
Des Moines is near the geographical
John T. Christie, president of the center of what is known as the Mis­
corporation, like the executive heads sissippi Valley, an area that is possible
of the three great rubber corporations of the highest state of development and
of Akron, is small in stature, but not has the capability of sustaining a great­
lacking in mental development. These er population than any similar area on
men never quibble; it is ‘yes’ or ‘no’ the face of the earth. A great country
with a promptness that is astonishing, looks upon Des Moines as its market
and in matters pertaining to the tire place. The State of Iowa and adja­
industry they seem to realize every cent states produce more bread-stuffs
phase of the difficulties and possibili­ than are produced in all Europe. Iowa
ties. When in a reminiscent mood they alone can grow more corn than is
cheerfully admit that the early days of grown outside of the United States.
their experience in the rubber industry
The Hawkeye State uses $43,000,000
were attended by many disagreeable worth of automobile tires annually,
perplexities and that in solving prob­ and now that the quality of the Hawklems they frequently made mistakes; eye Tire & Rubber Co., product is
but they seldom made the same mis­ known to be of the highest character,
take twice.
and with over 8,000 citizens of the state
The lives of these men seem to be enlisted as stockholders and boosters,
wrapped up in rubber. They worship together with a representative board of
the product of the Amazon forests and directors residing in the various parts
their greatest ambition is to transform of the state, this company should soon
this product into automobile tires that become one of the most prosperous in­
bear their trade mark. Today their stitutions of its kind in the United
work is so systematized that mistakes States.
and bankers and the object of all sorts
of bucolic spleen.


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Federal Reserve Bank of St. Louis

77

All the stockholders of the company
are buying their tires at a discount of
twenty per cent. This concession was
a part of the agreement when they
purchased their stock. Since the qual­
ity of the Hawkeye tires has proven
to be satisfactory, it is easy to under­
stand the dynamic force exerted by
these eight thousand boosters and the
part such stockholders will play in
winning success for their corporation
and big dividends for themselves.
The fame of the Hawkeye tires does
not rest in Iowa alone, they are being
used in large quantities throughout the
Western States and recently have gain­
ed a considerable foothold in the East.
Today the company is several thousand
tires behind in filling orders. This,
however, will be remedied when the
new factory is completed.
The new plant will be in operation
in the early part of next year and will
have a capacity of two thousand five
hundred tires and tubes per day. The
site which has been purchased is ad­
mirably adapted both for shipping and
housing conditions for employes. The
plans for the new building indicate
that it will be one of the most efficient
plants of its kind in the country.
Perhaps much of the success of the
Hawkeye company may be attributed
to the loyalty and enthusiasm which
dominates the company's employes«
Mr. C. C. Christie is in charge of the
manufacturing end and has succeeded
in surrounding himself by a small army
of competent men who are in love with
their work. There are no conspira­
tors or agitators in this organization;
labor ideals of the highest character
seem to govern the activities of the
institution.
The capitalization of the Hawkeye
Tire and Rubber Company is very con­
servative; in fact, when its physical
equipment and daily output are con­
sidered, it seems to be lower than most
rubber companies of its class. The
men behind this company are strongly
opposed to any excessive capitalization.
They want every stockholder to be a
satisfied investor, and in order to se­
cure this result they have practised the
strictest economy consistent with effi­
cient operation and satisfactory devel­
opment.
The remarkable development of the
rubber industry during the past four
years is one of the wonders of modern
business. The world has never wit­
nessed a greater growth in the manu­
facture of a single utility than that
which has taken place in the building
of automobile tires. It is not many
years ago since there was no demand
for a single tire of this character; to­
day thirty-five million tires are requir­
ed to meet the demands of the Amer­
ican people alone.
There is a golden harvest ahead of
conservatively capitalized and well
managed rubber companies, particul­
arly in states like Iowa where prac­
tically every farmer considers the
automobile a necessity and is pros­
perous enough to buy one.

78

THE

NORTHWESTERN

BANKER

October, 1919

«

H H

■

y

is is

th e

a#

A

T

a m

attention

is commi
rm

2 7 2 7 /) 2 7 /)

r n u n m

Designed by the greatest authority on
adding machines in America, the Federal
marks his crowning effort. it stands for
simplified efficiency.
Charles Wales, the veteran adding machine inventor
declared he would build a new machine—one that would over­
Icome
existing adding machine troubles.
N Ï914,

C H A R L E S W ALES
Aft1» W ales is th e I n v e n to r o f
th e F ed era l A d d in g M a ch in e,
H e is a lso th e in v e n t or o f th e
W ales A d d in g M a c h i n e
(iw h ich s t i l t
hears his
n a m e ), a n d for n e a r ly th r e e
y e a r s teas in th e I n v e n tio n
D e p a r tm e n t o f th e B o r »
ro u g h s
A d d in g M a c h in e
C om pan y.

His ten years’ experience with the two big companies in the busi­
ness, one of which still bears his name, combined with modem
manufacturing methods, has produced the Federal Adding Mach­
ine—a revolutionary product—strikingly simple—bristling with
right Ideas.
A strong corporation of successful business men—men of tried
adding machine experience—stand behind the Federal.
The Federal is not a new machine. For five years it has been in
constant use .by some of the largest corporations in the east;
including the Federal Government. Exacting tasks have proved
its merit finally, and we are now ready to announce quantity
production and distribution for the present in territory east of
the Mississippi,
Colt’s Patent Fire Arms Manufacturing Company is making the
Federal Adding Machine in its huge plant at Hartford, Cosm,
This splendid organization of 'engineers and factory experts, with
its international reputation, affords a convincing guarantee of- the
Federal’s mechanical excellence.
Every careful buyer of office appliances will see the Federal before
he buys, It commands immediate recognition through its down­
right merit and superiority.
T h e S ta n d a r d F e d e ra l " A ” A d d in g a n d L is tin g M a c h in e h a s 9 -c o lu m n c a p a c ity !
S t k ey s! t3 ~ in eh ca rria g e! r o ll p a p e r holder'} flexible k e y b o a rd } e a s y h a n d le p u ll
(m o to r e q u ip m e n t i f d e s ir e d h T h ere a re o n ly h a lf a s m a n y p a r ts In th e F ed e ra l
a s in o th e r s ta n d a r d m a c h in e s . S tr o n g e r c o n s tr u c tio n , s ta n d a r d iz e d ,'in te r c h a n g e ­
a b le p a r ts , m in im u m m o v e m e n t a n d Wear o f p a r ts . E v e ,y it e m v isib le . E lim in a ­
tio n o f lo n g s ta n d in g tr o u b le s ! a n d a h o s t o f n e w c o n v e n ie n c e s o f c o n s tr u c tio n
t h a t m a k e fo r s p e e d a n d a cc u ra cy. A d d in g m a c h in p se rv ic e g u a r a n te e d .

For 16 pa£e illustrated booklet, address! • . i -

*' .*

FEDERAL ADDING MACHINE CORPORATION
251 FOURTH AVENIH5, NEW TO«.«. I •. M


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Federal Reserve Bank of St. Louis

1

H M I

THE

October, 1919

NORTHWESTERN

BANKER

79

R E C O N S T R U C T IO N .

Hon. Wm. C. Redfield, Secretary of Commerce,
says: Months ago it was said in this country that
with us reconstruction was a state of mind, and now
that we are in the second half of the year since the
Bank Envelopes of every description, including Pay­
armistice and are coming near to a peace we see that
roll, Coin, Statement, Window, Commercials, Docu­
ment, Pennysaver, etc. Largest manufacturers of
this is very largely true. We have not the physical
Printed Envelopes in the world. Daily capacity eight
problems of France and Belgium. Our buildings and
million.
their equipment are intact. Our organizations have
W rite us for samples and prices whenever you are
rather been enlarged than destroyed. Some of our
in the market for anything in the shape of an en­
factories, indeed, find themselves, for reasons arising
velope.
from the war, with productive capacity greater than
is now convenient; but even in these cases men look
hopefully to the time in the near future when trade—
Chicago
St. Louis
New York
both domestic and foreign—will absorb their output.
We have had to provide for the coming home of our
troops, but after all that process has gone on rapidly,
quietly, and with but little disturbance, and today the
amount of unemployment in the land is not serious and
is undoubtedly growing less. On every
side one notices the gradual picking
up, as we call it, of commerce. Retail
trade is good. The stock market is en­
thusiastic. The men of finance speak
cheerfully. All bodes well for the
United States. Our rearrangement,
our readjustment, is drawing to the
close of its first stage. If the progress
continues for a few months more, little
in our industrial and commercial struc­
ture will show that within a year it was
substantially all concentrated on the
dreadful task of war.
Yet we should be superficial, indeed,
if we said no more about reconstruc­
tion ; if we left it to be understood that
the physical security of factories and
machinery, own ample supply of raw
materials, the abundance of our food,
the cheerfulness that is becoming all
but universal in our business circles,
the abundance of our credits, were all D oes your m otor “ cou gh ” an d “ sp it”
that was involved. There has been when you need a little extra power? Have you
cleaned your spark plugs and tried her out only
other definite reconstruction in Ameri­ to
find she does not act much better?
ca, and it is progressing steadily. It is
Put
in a set o f TUNG STEN SPARK
a reconstruction of ideas and it is based
PLUGS, then try her out on that hill you were
upon sound ideals.
forced to change gears on last Sunday.
Over in Russia we have seen the re­ Y ou ’ll see a big d ifferen ce, b eca u se th e
action from absolutism to Bolshevism way TUNGSTENS deliver the “juice” in a big,
sizzling ball of fire o ff the end of its special
—each an extreme, each a danger. Each hot,
sparking point will make a big difference in any
has sought to maintain its power by motor.
bloody means. Each, whatever it pro­ T hen you ’ll find a saving in gasolin e, too,
fesses, is the embodiment of cruel force. because there will be no leaking of current owing
Whatever Soviet government may be to poor, faulty porcelains— another strong
“in posse” the world knows well that TUNGSTEN feature.
it is cruelty and crime “in esse.” A A sk your d ea ler fo r th em . If h e can ’t
New England town meeting in which supply you, don’t be put off- Urge him to get
every citizen took a personal, imme­ them, or write to us, we will see that you are
diate, and direct part in the affairs of supplied.
TUNGSTEN
the town was and is an admirable
THE TUNGSTEN MFG. CO.
Comes in
A METAL BOX
thing, and the choice of three “select­
MARSHALLTOWN, IOWA.
men” to govern as they still do, our
New England villages, has worked ad­
mirably as an example of free govern­
ment by a free people. But if the New
England town meeting degenerates in­
to a mob with the mob psychology and
ALWAYS ON TH E JOB
with the spirit of ruin in order to rule,

B a n k E n v e lo p e s

Sam uel Cupples Envelope Co.

Motor

Has She
Lost Her “Pep”?


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Federal Reserve Bank of St. Louis

80

THE

NORTHWESTERN

NINE BANKS
SOLD
in the last thirty days. If interested
in the sale or purchase of a bank
try the “ W ALTERS SYSTEM”—
Quick, Quiet and Satisfactory Ser­
vice.

Remember—No Publicity—
Everything Confidential

BANKER

October, 1919

with the conception of tearing down in order to build
up, of destroying in order to construct, the New Eng­
land town meeting becomes a menace. If the three
“selectmen” of the New England village abandon the
quiet ideals that control them and become a group of
arbitrary masters of helpless subjects, if they govern
through the obedience of those who obey for. the sake
of reward, if they impose their arbitrary will upon their
people, that excellent system of government becomes
a plague, a thing to be held in check, perhaps to be
cut out, until a clear conception of the responsibility
of freedom under law shall prevail. So a concept of a
Soviet may be wholesome and the reality poisonous.
So Russia has reacted from one bad absolutism to
another worse one, but now seems to be groping to­
ward the light of moderation, in which progress all
wish her well.
One of my associates has said that Bolshevism is
anarchy of mind based upon an empty stomach, and in
this form it has appeared in Germany and elsewhere.
I suspect there is much force in the belief that a square
meal and a good suit of clothes are practical remedies
for Bolshevism and that employment at good wages
completes the conversion.

The Charles E . Walters Co.

B U IL D N O W !

1422-30 First National Bank Building
OMAHA, NEBRASKA

W. B. Wilson, secretary of labor, says: We went
into the war to aid in making the world a better place
in which to live. Behind the victory of arms, if the
United States is to appropriate her share of the fruits of
victory, must be the determination to do those things

i!:!il!l!ll!llllltl)llllll!IIIIII!l!llllllllllll!lllllllll!llllllllllll!llll!!l!l!llllllllll!IIIIIIIII!l!!l!lllllll!illl!lllllllll!llll!llll!lllllll!lllllll!l!lllll!llll!IIIIM

That New Bank— |
Send us th e plans of your new b an k and
let us advise w ith you ab o u t th e heating p lan t.
O ur advice and plans are free.

|
1

T h e T O R R ID ZO N E F urnace is simple in [
construction, easy to operate, durable, eco- 1
nom ical in fuel consum ption and is gas and § f
smoke tight.
jj

W e C an H e a t Y our H om e Too.

W rite Us A bou t It
“Built for Service"

More than 75,000
Now in Use


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Federal Reserve Bank of St. Louis

The Lennox Furnace Company |
200 Lincoln Highway

Marshalltown, Iowa

|

THE

October, 1919

NORTHWESTERN

which make for prosperity and for happier and more
contented people.
Homes, the very foundation of the social structure;
schools, the mold in which our citizenship is cast;
roads, the arteries of commerce; churches, springs of
spiritual inspiration! These we need in increasing
numbers throughout the land if America is to be made
a better place in which to live.
War interrupted our construction in these lines. The
country needs almost a million homes right NOW. It
needs hundreds of schools. There are not enough good
roads or churches.
To resume work in these lines immediately means
convincing evidence of your faith in the country’s
future; it means stimulation for all lines of business;
and, of profound importance right at this time, it means
a demand for labor—employment for the returning sol­
dier—build now.
NEWSBOY COMES RIGHT BACK AT HIM.
An Englishman, talking against many things in
America, happened to say to a friend in New York:
“Why, even your newsboys can’t take a joke!”
The American friend replied: “Just try the next one
that comes along with some nonsense and see if he
can’t answer you.”
The Englishman agreed and stepped up to a newsie
saying, “Hello, youngster, look at your nose and tell
me what time it is.”
The boy quickly replied, “Aw, look at your own,
mine ain’t running!”—Exchange.

Superior Fixture Co.

81

BANKER

B A N K E R S OF IO W A
Phone or write in for quick service on checks, deposit
blanks, letter heads, statem en ts, envelopes.
Members of United Typothetae of America.
Using
th e Cost System . TRY US.

BOWMAN PRINTING CO., Spencer, la.

C J y p "]\T O
S l l J i l 3

T H A T LOOK
THE PART

Banks are generally recognized to be the highest grade insti­
tutions in the world— they need signs to correspond— we offer
you choice of bronze, wood, screen, glass, or electric— signs of
the highest quality made of the finest materials and in the best
way, after designs by master artists.

Erect that memorial tablet or honor roll now.
DESIGNS AND CATALOGUES MAILED ON SUSPICION

C A R L E. N O R D
3 0 5 Metropolitan Bldg,
estern Office:

Sioux City, Iowa

M atthews of Pittsburgh
Bronze Signs & Tablets

KEEP IN T O U C H with your customers and prospective customers.
Go see them occasionally. Between calls, send
them a letter. We write, duplicate, personalize
and mail letters—complete service, or any part.
DES MOINES DUPLICATING CO., Des Moines, la .

Yo u r B a n k

Manufacturers & Distributors

Is reflected by the sta­
tionery you use.
We

Electric Lighting Fixtures

specialize in printed and
engraved

letter

heads,

statem ent folders and
booklets.

Bronze

Service, Quality

Standards, Tablets & M em orials

and R ight P rices
A lw a y s
Printing - Binding - Loose Leaf Devices
Designing - Engraving - Embossing

OFFICE & DISPLAY ROOMS

T H E H O M E ST E A D

415 Sixth Avenue
Des Moines,


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Federal Reserve Bank of St. Louis

.

.

.

.

G O M PA NY

NINETEENTH AND GRAND
Iowa

DES MOINES, IOWA

82

THE

NORTHWESTERN

BANKER

October, 1919

Fire Insurance Problems of the Day
By Jam es R. Young
In this interesting review, Mr. Young, who is Insurance
Insurance is a contract
and my desire has always
Commissioner of North Carolina, discusses many of the
of indemnity. As a busi­
been to do what I could to
important problems of the moment and sketches the devel­
ness it ranks with that of
relieve it. The change no
opment of the insurance business.
railroads, banks, express,
doubt must come largely
telegraph, and telephone companies and other big busi­ from publicity and education. Cannot the fire insur­
nesses. The annual income is over $2,000,000,000, with ance official afford to be willing in his dealings with
accumulated assets of over $7,000,000,000. Insurance the public to be candid and show them the working of
carries contracts on the lives, property and safety of the business? Must he not get away from the idea
over 50,000,000 of our population. It is necessary for that if he discloses any of the methods of the business
every turn of the wheel of production, every shipment to the public it will only place his company in a posi­
of products, every dollar of credits and every human tion to be taken advantage of? The public must learn
factor in trade in the country.
that insurance is a business and not a charity or even
Fire insurance has over 31 per cent of all insurance philanthropy—that it does not give something for
premiums, over $600,000,000 besides its interest in­ nothing—that if any of its workers claim to do this, it
come. It has over $350,000,000 of capital and over is only a pretense. The best that can be hoped is to
$2,000,000,000 of assets. It is the basis of all credit and give value received, and this it aims to do.
business. Practically one-eighth (}£) of its assets are
Fire insurance, to be worth anything, must be
burned up each year. Forty
safe, furnishing the protection
years ago there was an annual
asked for. The first essential
“ Fire insurance has over 31 per cent of all in­
fire loss of about $75,000,000.
is solvency. If the insurance
surance premiums, over $600,000,000 besides its
Now it averages $250,000,000.
written is not in a solvent
interest income. It has over $350,000,000 capi­
In 1906, the year of the San
company, it fails to perform
tal and over $2,000,000,000 of assets. It is the
Francisco conflagration, the
its most necessary function
basis of all credit and business. Practically
loss amounted to $459,710,one-eighth of its assets are burned up each year.
and at a most vital time. To
Forty years ago there was an annual fire loss of
000, while in forty years the
keep solvent, companies must
about $75,000,000. Now it averages $250,000,000,
fire loss has been $6,762,966,maintain adequate rates andIn 1906, the year of the San Francisco conflagra­
045, with practically an equal
be well managed. The com­
tion, the loss amounted to $459,710,000, while in
amount in expense.
forty years the fire loss has been $6,762,966,045,
panies must provide sufficient
with practically an equal amount of expense.”
What are some of these
capital and surplus to have
fire insurance problems, big
assets to meet not only pres­
or little? We cannot name
ent but contingent liabilities
and discuss them all but we can take up a few, not in such as may come in bad years and in conflagrations.
a way of criticism, not in an unfriendly spirit, yet But the necessity for solvency does not mean that
sufficiently clearly and candidly to make the naming their policy-holders must accept every rate promul­
and focusing of attention on them worth while. Some gated or every rule or practice indulged in, regardless
named may not be considered as pressing problems by of their justice or fairness. I t does not mean that the
different commissioners or insurance men and perhaps public are not entitled to have the business conducted
are not problems to all, and yet may be to some who on sound principles, free from any indulgence in high
need suggestions and help in handling them.
finance. Why should not the public be entitled to
The relations and feelings between fire insurance know that every rate promulgated is fair and the prac­
companies and the public with whom they do business tices proper? Is it sufficient when a rate is made to
should be good, indeed, much better than they are. insist that it shall be accepted without any explanation
The mutual distrust and lack of confidence should not or defense, simply saying the companies must have
exist, as it does. The feeling against insurance always adequate rates to take care of conflagrations? Should
worried me as an agent as well as a supervising official, not some effort be made to show what constitutes an

W m. B. Joyce £? Co., Inc.
N o rth w estern M anagers

National Surety Company
(T he W orld’s Largest Surety Company)

We write all kinds of FIDELITY, SURETY and COURT BONDS, BURGLARY and all
classes of casualty insurance. Our CHECK ALTERATION bonds SECURE you against loss on
ALTERED CHECKS. Write us for information and rates-.
Saint Paul, Minn.
Merchants Bank Bldg.


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Federal Reserve Bank of St. Louis

Minneapolis, Minn.
Builders Exchange Bldg.

October, 1919

THE

NORTHWESTERN

adequate rule? There was perhaps a time in the busi­
ness when this would go, but that time has passed, not
only in the fire insurance business but in practically
every other.
The premiums must be sufficient for they are, or
should be, the measure of the hazard assumed; but
they must be measured not regardless of, but with such
conduct and general business methods as are fair and
just to all concerned. There must be no lack of good
underwriting methods, no taking, a gambler’s chance
in any of the ways open in the business nor a failure
to exercise proper care in investments and economic
management.
The fire insurance business must produce enough
money to meet the fire losses, pay the expenses, and
leave a fair profit. So the fire loss becomes a very vital
issue in the business, and must receive careful atten­
tion and the active aid of the companies, of their special
and local agents, as well as of the public. It is a
question to what extent the heavy fire loss is due to
the mad rush for business, taking risks to placate or
please an agent, over-insurance, neglect of moral or
other hazards, agents leaving to companies the bad or
doubtful risk to be taken care of by cancellation, and
how much their elimination will reduce the loss. Is
there not too much taking of chances with the single
as well as with the exposure and conflagration hazards?
Annually the companies pay out, as has been said,
about one-eighth of their assets for losses—usually a
large part of each dollar taken in as premiums. The
American people through ignorance and carelessness
annually lose millions in property and many lives that
might be save with ordinary care. The problem with
the fire companies is to enlist not only their own people
but the public in this fight against fire waste. There
was never such a time for this fight. The experiences
of the war not only show the necessity for the fight but
how much can be accomplished by united action. The
government, National and State, the city officials, the
various organizations, the men, women and children
are awaking to the call, and need only to be shown the
real necessity and what can be accomplished and given
a leader in the conflict.
There is no doubt but that the expenses of conduct­
ing the business are very heavy. Many think too
heavy. They take in the home office, the field, taxes,
agency and other expenses that possibly may be classed
under one of these heads. Where can they be reduced?
As a whole they run around a 40-cent ratio, i. e., a com­
pany taking in premiums of one hundred thousand
dollars ($100,000) must expend $40,000 for expenses.


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

BANKER

83

IOWA NATIONAL FIRE INS. CO.
1018-1024 V a lle y N a tio n a l B an k B ld g .

DES MOINES, IOWA
JOHN L. BLEAKLY, President
F. L. M INER,
C. M. SPENCER,
V ice Pres.
Secretary
C. S. V A N C E ,
FRANK P. FLY N N ,
2nd V ice Pres.
Treasurer

POLICY HOLDERS
Will Patronize an IOWA Company
Guaranteed by IOWA Capital
Managed by IOWA Men
IO W A BANK ERS R ecognize the A dvantage of P ro­
tectin g IO W A C R ED IT w ith IO W A IN SU R A N C E

R e lia b le A g en ts W a n ted in E very City in Io w a .
W rite to th e C om pany or
H. P. ROSSER,
Supt. of Agents

1867

1918

AGE

STR EN G TH
S T A B IL IT Y

5 1 Y ears of B e st S ervice
Make

The Equitable Life
OF IOWA
Safe and Dependable for Bankers and Their Customers
H O M E O F F IC E
D E S M O IN E S , IO W A

84

THE

NORTHWESTERN .BANKER

G eo. J . D e lm e g e , P r e s i d e n t
F . C. W a t e r b u r y , V ic e P r e s .
T h e o . F . G re fe , S e c r e t a r y
H o m e r A. M ille r, V ic e P r e s .
W . P . H a b e l, A s s t. S ec’y
S im o n C a s a d y , T r e a s u r e r
H e n r y , A lb e r s o n & H e n r y , A t t o r n e y s

Cash Capital ...................
$500,000.00
N et S u r p lu s ........................................... 352,347.99
Surplus to Policyholders................... 852,347.99

A home company, owned by home people,
managed by experienced and conservative un­
derwriters and able financiers.
A C E N T R A L -W E S T E R N CO M PANY FOR
C E N T R A L -W E S T E R N P E O P L E .

CHILD’S ENDOWMENT
INSURANCE
A N ew Form of L ife In su ran ce
Issued O nly by

October, 1919

This certainly looks heavy when you recall that in­
surance men speak of the business as practically mu­
tual, merely the collection of premiums as of taxes
and paying them out. Forty thousand dollars for col­
lecting and paying out $60,000 is a pretty heavy per
cent. Taxes, state and national, are awfully heavy and
lack uniformity in different states. Might not united
efforts on the part of the insurance supervisors, the
companies, the insurance agents and the policy-holders
bring about a uniformity and reduction? Note I say
■‘reduction,” for insurance companies should pay their
part, no more no less, of the taxes necessary to run
the government. Why should any state relieve in­
surance companies of all taxes or even confine them to
the cost of supervision as some claim? In my opinion
these claims, which do not appeal to legislators or the
public, have much to do with the lack of uniformity
as well as the very heavy taxes imposed in so many
states. In the end the policy-holders pay the taxes and
are of course deeply interested in their reduction.
No one can doubt the problems to fire companies
that center about their agents. They are the pro­
ducers of the business and as such entitled to due con­
sideration ; but much depends upon their position on
the following matters:
Their loyalty to their companies and their interests.
Their authority, its proper use or abuse.
Their compensation, whether straight, graded or con­
tingent commissions, with the suggestion that salaries
may be tried.
Their qualifications, involving knowledge of the
business, the contracts and the laws that govern them.
Their attitude on rates and rating bureaus, on re­
bating, on adjustments, on selection of business and
over-insurance, on special rules and requirements, on
collections and remittances.
Their willingness to work for fire prevention, to
keep close to their customers with such service as will
uphold the character of the business, to collect prem­
iums and make prompt and regular remittances.
Upon whether the agent feels and acts as if his
business was a profession or allows himself to be­
come merely a premium gatherer.
There is no doubt of the position of the agent under
the present system of transacting the business, and
that when he renders proper service to his company as
well as the assured he is invaluable. Too often fire
agents do not do this but simply do business for the
commissions involved. It has always seemed strange
to me that fire agents should fall so far short of life
agents in studying and understanding their contracts
»
—...................................... —
The Protective Disability Policy oi the

PREFERRED ACCIDENT
W rite for fu ll p a rticu la rs
THE SUCCESSFUL LIFE INSURANCE
COM PANY OF IOWA
O u t o f th e W est C om es th e B est
J a s. H. J a m iso n ,
P r e s id e n t

A. D. S tr u th e r s , V i c e - P r e s i ­
d en t and T reasu rer

H a r r y D. S t. J o h n ,
S ecreta ry

M. M. D e m in g ,
A g e n c y D ir e c to r


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Federal Reserve Bank of St. Louis

INSURANCE COMPANY
Covers
A ll Accidents - - A ll Sicknesses
Over $13,500.00 Paid in Losses
Also you can buy w eekly indemnity as desired w ith o u t
a large death indemnity—and save money.

UPHAM BROTHERS COMPANY
Managers and Adjusters
Suite 619 Hippee Bldg.
Des Moines, Iowa

October, 1919

THE

NORTHWESTERN

and how to present them attractively to their patrons.
If fire agents followed their example more closely there
would be better service rendered and a great improve­
ment in the business and more and better satisfied
policy-holders. Too often agents lose business to brok­
ers because the broker gives or persuades the public
that he gives better service. The writing of business
by companies for brokers over the heads of their regu­
larly licensed agents is not justifiable and doing so at
lower rates than they will allow their agents to use
should be severely condemned. If the agent is not
big enough to handle the business get another; but as
long as he is associated with the company he is entitled
to fair and honest treatment at their hands.
Nothing is more clearly a storm center in fire insur­
ance than “Rates”—the mode of making and applying
them as well as showing to policy-holders their fair­
ness. They should be so made that they can be ex­
plained and defended. They should, in fact must, be
adequate. They should be fair and uniform, having
due regard to local as well as country-wide conditions
and experiences. They should be based on statistics
as well as underwriting judgment. They are not and
should not be arbitrary, though in their making there
must necessarily be at times an arbitrary basis or line
of demarkation. I do not believe in state-made rates
though it is pretty clear that their making must be
supervised. For one, I prefer a proper, even a strict
supervision to what its absence will lead to, state-made
rates. Rating bureaus are necessary, in fact I believe
the best mode of making rates; but they should be
properly directed and controlled so as not to be man­
ipulated in the interest of any one or set of companies,
and it should be well understood as to who does really
control the bureau and its work. There should be
spme well-known and accepted mode of equalizing
rates, giving due consideration to both local conditions
and experiences and those nation-wide.
The fire insurance companies seem to have a real
problem in gathering statistics, especially those likely
to give some idea of how the business is going and on
what it bases its rates. At one time each company at­
tempted to gather figures on its own business and treat
the results as trade secrets. The insurance commis­
sioners did not think well of this and called for united
work along this line. The companies got together,
organized the Actuarial Bureau and gathered figures,
always proposing to get somewhere after a while. The
bureau is still getting there. I fear that more than one
insurance official specially favoring the work has lost
his prestige and is not now possibly any too high in the

BANKER

For Satisfactory Service to Both Insured and
Agent Place Your Business w ith the

C A PIT A L O N E M IL L IO N D O L L A R S
EMORY H. ENGLISH, Pres. JOEL TUTTLE, Sec’y
Home Office: 715 Locust St., Des Moines

Fidelity and Surety Bonds
Burglary Insurance
Workmen’s Compensation
Automobile and Other
Public Liability Lines
A n n u a l S ta te m e n t D e c e m b e r S I, 1918.
A d m itte d A s s e t s ........................................................ $1,491,840.87
L ia b il i t i e s a n d R e s e r v e s .......................................
90,573.61
P a i d - u p C a p it a l ....................................................... 1,000,000.00
S u r p lu s ....................................... ; ..................................
401,267.26
S e c u r itie s o n D e p o s it w i t h t h e I n s u r a n c e
D e p a r t m e n t o f I o w a ............................................ 1,016,800.00

T H E R E ’S A R E A S O N
WHY BANKERS
SH O U LD HAVE
OUR AGENCY
g

Our policies give your clients the most for their money.
Our disability clause provides that the loss of the sight of one eye or the severance
of one hand or one foot constitutes total disability.
This makes our policies easy to sell, and we pay you well for selling them.

COMMONWEALTH LIFE INSURANCE COMPANY, Omaha, Nebraska
C L Y D E G. S M IT H , A g en cy M anager

Many bankers are coining money representing this Company—WHY NOT YOU?

Wt


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Federal Reserve Bank of St. Louis

lilllllllllilllllllllllllllllMllllllllllllllllllllllllllllllllIlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllW

85

THE

86

NORTHWESTERN

MR. COUNTRY BANKER
What Arc You Worth to Yourself?
Are You Worth More Dead than Alive‘S
i p Y o u a b s o l u te ly k n e w y o u w o u ld l i v e to b e e i g h t y
■■ y e a r s o ld y o u w o u ld n o t n e e d to i n s u r e y o u r life .
I F y o u a b s o l u t e l y k n e w t h a t y o u w o u ld n e v e r b e i n j u r e d
o r s i c k t h e r e w o u ld b e no e x c u s e f o r t h e e x is te n c e o f a n
A c c id e n t I n s u r a n c e c o m p a n y .

The Big “ IF” Justifies the Insurance Business
W h e n y o u d ie y o u r L if e I n s u r a n c e w i l l p r o t e c t y o u r
f a m ily . W h y p a y a l o t o f m o n e y e v e r y y e a r m e r e l y to
IN C R E A S E t h e p a y m e n t to y o u r f a m i ly in t h e r e m o te c o n ­
ti n g e n c y t h a t y o u m a y d ie b y a c c id e n t.
W e p a id o u t $40,000 m o r e in 1918 f o r s i c k n e s s c la im s
a lo n e t h a n w e h a v e p a id in t h e l a s t five y e a r s f o r a c c i d e n ­
t a l d e a th s .
W e p a y o v e r t e n t im e s a s m u c h m o n e y e v e r y y e a r to
m e n w h o a r e I N J U R E D a s w e p a y to t h e w id o w s o f m e n
w h o a r e k ille d .

We Pay You for Loss of Time While You Live
I n v e s t i g a t e o u r n e w D e fin ite I n c o m e P o lic y . N o D e a t h
I n d e m n ity . J u s t a g u a r a n t e e o f $25, $50, $75 o r $100 p e r
W E E K w h e n y o u a r e d is a b le d b y a c c i d e n t o r s ic k n e s s .
T h e s e a m o u n t s d o u b le d i f c o n fin e d to a h o s p i t a l — s e t t l e ­
m e n t ev ery fo u r w eek s.
P o lic y d o e s n o t r e q u i r e h o u s e c o n f in e m e n t. P a y s f o r
p a r t i a l l y d i s a b li n g a c c i d e n t o r s ic k n e s s . P a y s t h e d o c to r
b i l l if n o lo s s o f tim e s u s t a i n e d . P o ll
in e f fe c t o n d a t e
is s u e d .

Bankers Accident
Insurance Co.
D E S M OINES
A s s e t s O ver a Q u a rter o f a M illio n
D o lla r s
W r ite y o u r n a m e a n d a g e o n m a r g in a n d m a ll to u s fo r
f u l l p a r tic u la r s.

I o w a ’s L e a d in g L ia b ility I n s u r a n c e C om p an y

Iowa Mutual Liability
Insurance Company
CEDAR RAPIDS, IOWA
A u to m o b ile P u b l i c L ia b i l i t y ( P e r s o n a l I n j u r i e s )
A u to m o b ile P r o p e r t y D a m a g e L i a b i l i t y a n d C o llis io n
W o r k m e n ’s C o m p e n s a tio n L ia b il i t y
G e n e r a l, P u b lic , T e a m s a n d E l e v a t o r L i a b i l i t y I n s u r a n c e
L o w e st R a tes
S e r v ic e B e s t

I o w a ’s L e a d in g A u to m o b ile In s u r a n c e C om p an y

Iowa Automobile Mutual
Insurance Company
fUCEDAR RAPIDS, IOWA
A u to m o b ile F i r e , L i g h t n i n g , T h e f t, T o r n a d o a n d C o llis io n
In su ran ce
B r o a d e s t F u l l F l o a t e r P o lic ie s
L o w e s t R a te s , S e rv ic e B e s t
A g e n ts w a n te d .

A d d re ss in q u irie s

C. J . D U N C A N , V ic e P r e s id e n t a n d G en era l M a n a g er
In s u r a n c e B ld g .. 612 S eco n d A v e . E a s t
C ed ar R a p id s. I o w a


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Federal Reserve Bank of St. Louis

BANKER

October, 1919

councils of the company. The National Board organ­
ized the Actuarial Bureau and are working it, but can
never be “blamed” as Senator Vance “blamed” Presi­
dent Cleveland for the enforcement of the Civil Service
law. Senator Vance said he did not find fault with Mr.
Cleveland for enforcing the law. It was his sworn
duty as President, but he said Mr. Cleveland had such
an “appetite” for it. I fear many of the companies or
their representatives still have little “appetite” for the
work of the Actuarial Bureau. Yet I am persuaded of
its value, even necessity, in the business, but of course
it must go much farther than it does now.
How much better it would have been for the fire
companies to have done as the workmen’s compensa­
tion companies have, start and gather statistics and
let them keep pace with the business and be of real
use in making and explaining or justifying the rates
used. There are no workmen’s compensation laws in
my state but I note that a big saving is claimed
through experience rating. I doubt if fire insurance
rating will ever be worked out on a strictly scientific
basis, but certainly proper statistics will afford the
nearest correct distribution and approach to it.
A SUGGESTION ON THE BIG CASE,
William King, of the Missouri State Life, says:
The big case seldom “happens.”
It is my opinion that most life insurance salesmen
fail to land the majority of their business because they
fail to study the case—this is especially so in the case
of failing to land the big cases.
The architect plans his building—the engineer plans
his engine—the machinist works from a blue-print—
but the life insurance man—?
Now, experience alone teaches us the usual line of
presentation and the usual thoughts in the minds of the
average buyer—we are all familiar with the stock ob­
jections—“can’t afford it”—“not interested”—“carry­
ing all I can handle” and all that, but the big case
seems to require special treatment.
Every life insurance man knows that his competitor
on the average case is not some other company—it is
shoes for the baby—clothes for the wife—the high cost
of living—the vacation—the school expenses, etc.
But what of the big case—you know he has the
money—and you know he can pass the doctor—and in
my opinion with these two thoughts known, the man
is a prospect.
Now, here are some thoughts on what I mean by
planning the case.
What will make him buy—protection to business?—
to pay inheritance taxes?—to buy out his partner?—
to cover his loan at the bank?—to pay the administra­
tion expenses of his estate?
First, decide these points:—then estimate how many
other possible ways he can do the same thing. For
example, Liberty Bonds carried in the estate will
cover every one of the above thoughts, but will they
cover it as well as life insurance? If they will not,
why won’t they?
Now, here’s another thought—there is some man
probably to whom the prospect owes an obligation—
find him and make him your friend in the deal—he’ll
be worth more to you than your knowledge of life in­
surance.
Now, having planned the reasons for the case—hav­
ing located the strategic influence in the case—prepare

October, 1919

THE

NORTHWESTERN

your presentation in such a manner as to cover ob­
jections before they are raised.
In connection with the suggestion above I advise
every life insurance man who expects to write big busi­
ness to spend considerable time in studying business,
in studying law, in studying finance, in studying bank­
ing, in studying practical administration and in study­
ing insurance.
Collateral information together with the expert’s
knowledge of life insurance, combined with careful
planning, are the “Open Sesame” to so-called big busi­
ness.
D O U B L E IN D E M N IT Y CLAIM S.

That the double indemnity accident clause in life
insurance amounts to something is shown in a schedule
put out by the Equitable of New York, covering the
first seven months of this year. There were 20 policy
holders involved, the original insurance being $62,097.
The total paid was $124,194. Most of the insurance
has been in force less than a year.—National Under­
writer.
A N IN T E R E ST IN G TIM E.

When a young lady begins to exhibit interest in the
arrangement of a young man’s cravat, his bachelor
days are numbered. It is also time for him to begin
to think about life insurance.—T. Phelps.
D IS A B IL IT Y BY AGES A N D CAUSES.

Up to June 1, 1919, The Travelers had approved
disability benefits on 162 policy holders. Thirtyseven people were disabled before they reached 30;
53 between 30 and 40; 35 between 40 and 50; 28 be­
tween 50 and 60, and 9 at 60 and over. Ten cases were
approved within the first year of insurance, 31 more
within the second, and 27 more before the third year
had elapsed.
The principal causes were: Insanity, 34 per cent,
tuberculosis, 27.2 per cent; diseases of the spinal cord,
11.1 per cent; cancer and malignant tumors, 4.9 per
cent; diseases of the circulatory system, 4.3 per cent;
other diseases, 14.2 per cent; accidents, 4.3 per cent.
N E W SE C U R IT IE S COM PANY.

The Mid-West Securities Corporation is the name
of a new concern now in process of formation, follow­
ing the plan of the Des Moines Securities company
and similar organizations in Des Moines, whereby a
number of men subscribe for stock, payable monthly.
Similar concerns have been operating successfully in
Des Moines for four or five years. The officers of the
Mid-West are Lloyd Waddell, president; W. P. Bair,
vice president; John Elkington, secretary; B. F. Kauff­
man, treasurer; directors are the above and Robert M.
Evans, Reson S. Jone's, Homer J. Clark, Harley H.
Stipp and Walter St. John.
SECOND G R E A T EST L IF E IN SU R A N C E CEN­
TER.

With a billion dollars of insurance in force in purely
Des Moines companies, Des Moines stands ouit as the
second greatest life insurance center of the United
States, ranking below New York only.
This insurance is distributed among fourteen local
companies.
Life insurance companies in the state of New York
can count but nine billion dollars of insurance in force


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Federal Reserve Bank of St. Louis

BANKER

CHARACTER

87

STRENGTH

SERVICE

NATIONAL FIDELITY LIFE
A dominating factor in its HOME CITY and
a SUCCESS wherever represented.
NATIONAL FIDELITY Salesmen are money
MAKERS and money SAVERS.
We still have Agency opportunities in Iowa,
Oklahoma, Nebraska and South Dakota. Men of
known character and good selling ability, with or
without experience, will profit by investigation.
FIRST Iowa Company writing BOTH Double
Indemnitv and Total Disability Benefits. FIRST
Company in ENTIRE WEST giving FREE
health tests to ALL policy holders. ALL stand­
ard forms issued—Men and Women, all ages 15
to 60.

National Fidelity Life
Home Office, Sioux City, U. S. A.
RALPH H. RICE, President

IMed-A General Agent
IN E V E R Y C O U N T Y IN IO W A

Men without insurance experience, but who
have been successful in other lines, will be con­
sidered for these positions and will be thor­
oughly trained and instructed. Ambitious men
are offered opportunities not available with
older companies. This company has the larg­
est paid-up capital of all life companies organ­
ized under the Iowa laws.
W rite to Home Office

Des Moines
Life and Annuity
Company
Register-Tribune Bldg.

D es Moines, Iowa

I

THE

NORTHWESTERN

STABILITY
of the Agency with which you
place your business is as much to
be desired as the stability of the
Company itself.

THE IOWA AGENCY
OF TH E

BERKSHIRE
LIFE INSURANCE
COMPANY
makes an ideal connection for the
banker, because it couples exper­
ience, stability and service with a
Company that is unsurpassed.
Business placed with this agency
will be efficiently taken care of,
your policy-holders interests care­
fully looked after and complete sat­
isfaction to the customers of your
bank guaranteed. Ask for our
proposition to bankers.

BANKER

October, 1919

to their credit, exclusive of industrial insurance. Thus
Des Moines companies alone have one-ninth as much
life insurance in force as all of the companies in New
York State, which is the great financial and insurance
center of the country.
The total life insurance in force in the United States
during 1917 was $27,116,690,770, according to the 1919
New York World Almanac. Hence the large share of
the country’s life insurance business carried by Des
Moines companies becomes apparent. In addition a
large volume of business is carried by other Iowa com­
panies.
Good management, the great prosperity of the mid­
dle west, the excellent Iowa insurance laws and the es­
tablished recognition of life insurance as a valuable
economic and business necessity, have played a part in
the development of the Des Moines companies.
The oldest life insurance company in the state is the
Equitable of Iowa, which was founded in 1867. This
company now carries $160,000,000.
The largest volume of life insurance carried by any
company located west of the Mississippi river is that
of the Bankers’ Life Insurance Company, which has
$450,000,000 in force.
The Royal Union, Central Life and Merchants’ Life
each have about $60,000,000 in force, the National Life
has $40,000,000 and the American Life has $25,000,000.
The fourteen Des Moines companies, with the year
in which each was established, are as follows:
1867—Equitable Life Insurance Company of Iowa.
1879—Bankers’ Life company.
1886—Royal Union Mutual Life Insurance company.
1894—Merchants’ Life Insurance company.
1896—Central Life Assurance Society of the United
States.
1899— American Life Insurance company.
1900— National Life Insurance company.
1907—Western Life Insurance company.
1913—Provident Life Insurance company. .
1917— Des Moines Life and Annuity company.
1918— Reinsurance Life company.
1918—American Teachers’ Life Insurance company.
1918— State Life Insurance company.
1919— Liberty Life Insurance company.

Your Customers Want This
Berkshire Life Insurance Company
of
Pittsfield, Mass.

E m ory D. Bream
General Agent for Iowa
7 /5 Hippee Bldg .

Many of your customers expect you to look after their
insurance in all lines. The demand for accident and
health insurance is greater than ever before. The “flu”
epidemic is partly responsible for this increased de­
mand.
The Great Western is an Old Line Company. It is
financially sound. It pays its claims promptly. Its
policies provide real protection.
Its plans aim at
permanence. It’s the kind of insurance that 'will fit in
well with the banking business. At your request we can
arrange this service for your customers through your
hank.

Great W estern Accident Insurance
Company

DES MOINES, IOWA
DES MOINES


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Federal Reserve Bank of St. Louis

IOWA

October, 1919

THE

NORTHWESTERN

89

BANKER

PR IM E H AS V A C A T IO N .

Secretary Prime, of the National Fidelity Life, and
family are enjoying a fine outing of some two or three
weeks at the Lakes in northern Iowa. Mr. Prime has
made himself a most valuable associate in the National
Fidelity family, has worked faithfully in season and
out for the company’s good name and best interests,
and his friends are to be found throughout the home
office and the company’s entire territory by reason of
his faithfulness, years of splendid experience and his
ever willingness to efficiently serve all those who, in
any manner, have to do with his department.—From
the Bulletin.
D U T Y , N O T CH ARITY.

President John T. Baxter, of the Northwestern Na­
tional, says:
Don’t give your prospect any encouragement in the
more or less prevalent idea that in taking out insurance
on his own life for the protection of his family, he is
doing a- great, big, generous and handsome thing for
his dependent wife and children. That is a wholly un­
warranted species of self-approval which should be
corrected whenever opportunity offers. The appeal
to vanity or egotism is pleasing to some people, and
will sometimes get a signature on the dotted line. But
the appeal to a sober sense of personal responsibility
gets the business that will stick and will continue to
pay premiums from year to year.
Rightly understood, life insurance is a matter of
business, not of sentiment. And in the long run it is
better to present it to the prospect as a plain matter
of duty rather than as a kind of charity or benevolence.
The man who has taken insurance on his own life for
the protection of his family, upon the theory that it is
his first and most obvious business obligation, is more
likely to persist and to continue as a policy holder, than
is the man who, having taken out a little insurance on
his own life, goes around wearing a kind of selfadjusted
halo, as the generous, big-hearted family Santa Claus.
More and more the family is coming to be regarded
as a man!s first and most important business enter­
prise. Purely as a matter of business, therefore, that
family should be protected against bankruptcy that
so often follows the death of the bread-winner.
Nobody has yet improved upon Dr. Talmage’s
characterization of the man whose death leaves a wife
and children penniless. Talmage said: “Such a man
does not die. He just simply absconds.” Fortunately,
that is now getting to be the prevailing view of the
matter.
Herman Elenbogen has sailed for Stockholm, his
trip being chiefly to the Poland, Lithuania and the
Baltic provinces. Mr. Elenbogen is vice president of
the West Side National Bank, of Chicago, and his trip
is in the interest of foreign born clients of the bank,
principally to assist them in locating their relatives
and also for the purpose of establishing foreign bank­
ing connections.

IOWA STATE INSURANCE CO.

(mutual)

KEOKUK, IOWA
In su res a g a in st Fire, L ig h tn in g and W ind
O rganized 1855
G. C. T ucker, Secretary
W m . L ogan, P resid en t


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Federal Reserve Bank of St. Louis

4
Reasons W h y Y o u S h o u ld
R e p re se n t th e
FA R M ER S ’
It is the only Live Stock Insurance Company in
America that offers the small breeder as good a deal
as it does the larger breeder.
The Farmers Live Stock Insurance Company is
under conservative management. It has the largest
amount of capital and surplus behind it of any West­
ern company.
It is an Iowa company, managed by Iowa men and
deserving of the patronage of Iowans.
.The company, in its entire history, never has had
to contest the claim of a policyholder.

FARMERS LIVE STOGK
INSURANCE COMPANY
Old Line Insurance for Hogs, Horses and Cattle
Largest in the West
DBS MOINES, IOWA

OPPORTUNITY
S alaried p o sitio n for field m a n .
fu rn ish reference.

M u st

W rite

NATIONAL AMERICAN
LIFE INSURANCE CO.
B URLING TO N , IOWA

FIRE, LIGHTNING AND THEFT INSURANCE
ON AUTOMOBILES
all for $1.00 per $100 and $3.00 commission on this
policy. We insure buildings, mercantile stocks,
etc., at a one-half basis rate. Maximum liability
cannot he more than rating bureau rate. Low rate
on theft by burglary of stocks of any kind. We
have paid all our losses promptly. By making con­
nections with us you will get liberal commissions
and best of treatment for your clients.

Automobile Trade Mutual Insurance Assn.
515 Polk Bldg., Des Moines, Iowa

90

THE

NORTHWESTERN

BANKER

October, 1919

FOOLING THE GOOD AMERICAN FARMER.

The Automotive
Insurance Company
Mason C ity, Iowa
Will be ready to commence business about Octo­
ber 1st. As the name implies, the company will
insure all automotive machines against the haz­
ards of fire, theft, lightning, tornado and property
damage.
In launching this new company, the management
realizes that much of its success will depend upon
the agents who represent it in the field, and it is
with this thought in mind that an agency policy
has been adopted which is sure to appeal to those
who prize ideal working conditions.

Splendid Territory Available
A Good Proposition Awaits You

ACT TODAY
A. M. Schanke, President
E. L. Balz, Vice-President
E. G. Dunne, Vice-President
W. G. Schanke, .Treasurer
E. H. Warner. Secretary and Manager
Stanley K. Williams, Agency Supervisor
J. H. Bunter, Special Agent

MORE POWER TO YOU
The more push there is behind you
the more power you have. We furnish
the push. This push is the help we
give our men. No other life insurance
company does as much to insure the
success of its Field Force. Ask any
Bankers Life man or write

BANKERS LIFE COMPANY
DES MOINES

*At HE OLD/L.i’.N’E^

ED A R « A P I
I N S U R A N C

State Agencies^Open in Three
¡Western States.
A Good chance for Bankers w ith
A b ility of Management
<
2M,Rabbins.

JRres

GM.SvaJbodat, . Secy.

HOME O F FIC E : C E D A R R A P ID S , IOWA


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Federal Reserve Bank of St. Louis

(C o n tin u e d fro m p ag e 10.)
tre n c h e d ta x free m u n icip als, school ¡bonds, d rain ag e
b o n d s an d n u m e ro u s o th e r ta x free secu ritie s? B ecause
none of th e abo v e re p re se n t th e ir ox. T o be c o n siste n t
th e p re se n t “ C am p aig n of E d u c a tio n ” of th e F a rm
M o rtg a g e A sso ciatio n sh o u ld ta k e in m o re .territo ry .
M r. V a n E v e ra g e ts th e city co n veniences p u t on
his fine resid en ce lo t ch e a p e r b ecau se th e co st is m et
b y ta x free bonds. T h e re h as been no u p risin g a m o n g
th e m em b ers of th e F a rm M o rtg a g e B a n k e rs A sso ­
ciatio n , w h o all live in cities, b ecau se th e co st of th e
co m fo rts an d co n veniences th e y g e t in th e ir h om es are
p aid for b y ta x free b o n d s, w h ich m ak es th e se lu x u ries
ch e a p e r fo r th em . If c ity people can b a n d to g e th e r
to g e t w a te r on th e ir lots, is th e re an y ju s t reaso n w h y
fa rm e rs c a n ’t b a n d to g e th e r to g e t th e w a te r off th e ir
fa rm s? A n d is h ere a n y “fa v o ritism ” if b o th are al­
low ed eq u ally fav o rab le m e th o d s of fin an cin g th e cost
of th e se im p ro v e m e n ts?
O f co u rse th e F a rm M o rtg a g e B a n k e rs A sso ciatio n
w o u ld h av e no o b jectio n to F e d e ra l F a rm L o an and
J o in t S to ck L a n d B an k s if th e ta x ex em p t fe a tu re of
th e b o n d s w ere elim in ated . I t is th e ta x ex em p t fea­
tu re th a t m akes lo n g tim e farm lo an s possible. C u t
o u t th e ta x ex em p t b o n d s an d th e F a rm M o rtg a g e
B an k ers A sso c ia tio n of A m erica w ill h av e elim in ated
th e ir s tro n g e s t co m p etitio n . T h a t is w h y th e F a rm
M o rtg a g e A sso ciatio n of A m e ric a is, a t th e p re se n t
tim e, m a in ta in in g an ex p en siv e an d h ig h p o w ered lobby
a t W a s h in g to n to e n lig h te n C o n g ress on th e g ra v e
need of re p e a lin g th is fe a tu re of th e law . S en ato r
S m o o t fro m th e g re a t a g ric u ltu ra l s ta te of U ta h an d
R e p re se n ta tiv e M c F a d d e n fro m th e g re a t a g ric u ltu ra l
s ta te of P e n n sy lv a n ia hav e in tro d u c e d bills to elim in ate
H a m le t fro m .the p lay — to repeal th e ta x ex em p t fea­
tu re of th e law . I t is ex p ected th a t th e g re a t a g ric u l­
tu ra l sta te s N ew H a m p sh ire , R hode Isla n d an d N ew
M exico w ill jo in in th e m o v em en t. P o ssib ly also
A laska.
M r. V a n E v e ra say s “ If- th e tr u th w e re to ld , th e
fa rm e r’s g re a te s t o b je c tio n to th e F e d e ra l L o an A ct
is th is lo n g tim e financing. T h e a v e ra g e fa rm e r does
n o t care to o b lig ate h im self for th irty -th re e y ears, n o t
k n o w in g w h a t th e c o n d itio n s a re g o in g to be fo r th a t
le n g th of tim e .” M r. V a n E v e ra d o e sn ’t u n d e rs ta n d all
th e w ise p ro v isio n s of th is law . T h e b o rro w e r h as th e
op tio n , a fte r five y e a rs, to p ay tw en ty -fiv e d o llars or
an y m u ltip le th e re o f on h is loan. If, th e n , m o n ey is
ch eap er, he p ay s it off. If m o n ey is d e a re r h e rides
along. H e p u rsu e s th e even te n o r of his w a y w ith
q u ie tu d e of s p irit k n o w in g th a t w h a te v e r h a p p e n s he
is safe. H e is n ’t h a ra sse d b y th e c o n s ta n t w o rry
w h e th e r or n o t he w ill be able to ren ew his lo an w h en
its s h o rt tim e p erio d expires. H e re to fo re th e loan
com p an ies h a d th e o p tio n s, a t th e end of th e sh o rt
term , as to ra te , an d ren ew al. U n d e r th e n ew plan
th e fa rm e r h as th e o p tio n s. I t is difficult to im agine
th e fa rm e r “o b je c tin g ” to th e ch an g ed situ a tio n . If
th e fa rm e r d o esn ’t w a n t th is k ind of a loan w h y all th e
cam ouflaged p ro p a g a n d a a g a in s t th e F e d e ra l F a rm
L o a n an d J o in t S to ck L a n d B an k s? T h e F a rm M o rt­
g ag e B a n k e rs A sso ciatio n are s q u a n d e rin g la rg e sum s
of m o n ey in th e ir u seless “ C am p aig n of E d u c a tio n .”
M r. V a n E v e ra , as a p ro m in e n t m em b er, sh o u ld call a
h alt.
M r. V a n E v e ra ta k e s ex cep tio n to th e J o in t S to ck
L a n d B a n k ’s ra te of 6% . H e sa y s “ T h e J o in t S tock

October, 1919

THE

NORTHWESTERN

Land Banks are now making the marvelously cheap
rate of 6% to the farmer on long time investment. * * *
Barring the last three years when the war activities
shortened the supply of money for investment, the rate
of interest on farm loans in Iowa has been at least
Yz per cent less than this rate.”
Does the Iowa farmer fare badly when he pays six
per cent for a long time loan on the amortization plan ?
In pre-war days some Iowa farmers were able to
borrow money on their land from members of the
Farm Mortgage Association at as low as 5%, but
whether at 5% or 5]/2% he seldom obtained a loan for
a larger amount than $62.50 per acre on five year’s
time. To get this low rate there was usually a com­
mission charge varying from 1% to 2%. Because of
the low ¡first mortgage the farmer was obliged to place
a second mortgage for an even shorter period on his
land for which he paid 7% to 8% with commission of
2% to 3%, varying according to the loaner’s knowledge
of his necessities.
The young farmer of moderate means or the tenant
who has accumulated a sufficient amount to make a
substantial payment on a farm must have long time
money to work out his debt. Let us see how such an
one would come out under the two loan plans. He
buys 160 acres of Iowa land going in debt $100 per
acre. Under the old plan he puts a first mortgage of
$10,000, 5% (the most favorable rate) for five years
and a second mortgage of $6,000, 7% for three years.
If he carried these loans on his farm for 33 years re­
newing every five and three years he would find the
following results: Interest on $10,000, first mortgage
5%, 33 years, $16,500; commisions for renewing (1%
seven times), $700; principal to be paid at end of 33
years, $10,000; interest on second mortgage 7%, 33
years, $13,860; commission for renewal (2% 11 times),
$1,320; principal to be paid at end of 33 years, $6,000;
making a grand total amount to pay, $48,380.
On the other hand a loan of $16,000 amortized under
the government plan at 6% with a semi-annual pay­
ment of Yz of 1% of principal would cost as follows:
65 semi-annual payments of $560 principal and interest,
$36,400; one final payment of $467.68; federal appraisal
and examination fee, $42; a grand total to pay of $36,909.68, and the mortgage is cancelled. Cost of the old
method, principal and interest, $48,380; cost of govern­
ment plan 6% amortized loan principal and interest,
36,909.68; saving to borrower on new plan over the
old, $11,470.32. 1
The above comparison does not take into considera­
tion abstracters’, attorneys’ and recorders’ fees which
amount to a considerable in making repeated short time
loans. The Land Bank loan is not only cheaper to the
farmer who needs long time money, but it saves him
endless worry about renewals.
The long time farm loan is not a new experiment.
In older countries than ours the plan has long been in
operation. It is the only plan that enables the enter­
prising young farmer of moderate means to secure land
in this 'fine middle West country. Every one recog­
nizes that it is most desirable that the farmers own
the land, that they be given every opportunity to buy
the land, and that there be increased incentive for more
people to go back to the land. To accomplish this is
one of the gravest problems of our times. The decrease
in rural population of the United States has been most
alarming—from 70.5% in 1880 to between 40 and 45%
at the present time—and this fact in a large measure
accounts for the rising tide of the cost of living.


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Federal Reserve Bank of St. Louis

BANKER

91

American Bonding and
Casualty Company
Sioux City, Iowa

HOME OFFICE:

SIOUX CITY, IOWA

Gus A. Elbow, President

IOWA’S FIRST MULTIPLE LINE
INSURANCE COMPANY
Assets March 31.1919................. $1,422,858.01
$800,000 in.approved securities on deposit with Iowa In­
surance Department for protection of Policy-holders.

The Bankers Automobile
Insurance Co. NEBRASKA
A u th orized Capital
$ 5 0 0 ,0 0 0
A w estern com pany, organized to
m eet w estern conditions.
W rites Fire, T h eft, T ornado, Col­
lision, P ro p erty D am age an d Public
L iability f o r o n e o r th re e y e a r s .
Live wire A gents w anted in th e fol­
lowing states: N ebraska, K ansas, Texas,
Iowa and South D akota.

S tan dard Policies
Special R ates
T h e special c o m b in a tio n p o lic y
(standard forms of coverage) a t special
rates for farm ers’ cars is th e biggest sel­
le r in th e h i s t o r y o f A u to m o b ile
Insurance

92

THE

NORTHWESTERN

BANKER

October, 1919

Securities, Bonds and Mortgages
By Wm. L. Ayers
Each month Mr. Ayers presents in this department a
timely synopsis of financial affairs as they relate espec­
ially to bonds and mortgages, and we are sure that our
readers will find much valuable information in the ma­
terial here published. Mr. Ayers is well and favorably
known as a financial writer.

Machinery is being oiled
temporarily, through the
in the financial centers of
banks, until such time as
the United States for the
conditions had improved
handling of a vast amount
and the investment de­
of investment securities during the closing months of mand broadened.
The wisdom of this policy found the best proof prob­
this year. Leading bankers of the country profess to
see an unusually large amount of financing approach­ ably in some of the attempted financing in recent
ing—much of it having been withheld from public offer­ months. A few of these undertakings were dismal
ing for a month or more.
failures, while others dragged along at an unusually
Of the securities in the “Delayed” class the majority slow pace. There was no other reason to account for
of them have been awaiting issuance for some time but this than disinterest on the part of the investment
have been repeatedly postponed pending a more pro­ clientele. The issues were of high caliber, offered an
pitious time for their sale. Whether conditions now are enticing yield to the purchaser, and at the same time
—or whether they will be in the next few months—bet­ carried with them some very attractive features. They
ter than have prevailed heretofore in this riotous year were not, however, sufficiently alluring to draw the
will not be discussed in this article. That in itself forms public out of its shell of aloofness.
At the time of the writing of this article investment
a topic sufficiently broad and with sufficient ramifica­
tions as to be worthy of a separate article, and could houses in Chicago, a few of them with selling organiza­
not be crowded into the space permitted me by The tions embracing virtually the entire United States, re­
port that they have a large
Northwestern Banker.
amount of undigested securi­
The main fact in which the
“A decided turn for the better is expected in
ties on hand. These represent
reader of this article will be
the later months of the year— conditions are in
offerings Which were not as­
interested is that this financing
fact already showing signs of improvement.
similated by the public. These
is to be undertaken. Appar­
This is due to an altering of the circumstances
exercising control, namely, the gradual lower­
issues are still being offered
ently much of it has reached
ing of the high cost of living and indications of
for sale and repeatedly adver­
the stage of urgency warrant­
a better attitude on the part of the labor
tised.
ing its launching, regardless of
element, combined with some lessening of the
A decided .turn for the bet­
prevailing social, economic -or
evils of Bolshevism and its related uprisings.”
ter is expected in the later
financial conditions.
months of the year—condi­
Were it possible to estimate
the total of security issues held up in the last few tions are in fact already showing signs of improve­
months because of unsettled conditions, it would no ment. This is due to an altering of the circumstances
doubt, be surprisingly large. In July, August and exercising control, namely, the gradual lowering of the
September the amount of corporate, municipal and high cost of living and indications of a better attitude
other financing arranged did not approach even within on the part of the labor element, combined with some
speaking distance the volume that naturally should lessening of the evils of Bolshevism and its related up­
have been put through in view of the governing risings.
What is more important, however, is that there will
factors.
The reason for this was that the public were not be a promising reinvestment demand develop toward
according security emissions a very cordial reception the end of the year, based on the expected easing in
because of the uncertainty of their own affairs, due money and returns from the country’s enormous agri­
to the high cost of living and social disturbances. The cultural production, which breaks all records—for
money demand by corporations was large, and while money value at least—in every crop this year.
There are two classes of security which are even now
it was, of course, desirable to put loans in more fixed
form they deemed it expedient to finance themselves, experiencing a heavy demand, viz: municipal and farm

DO
you know that because of tax-exemption a 5% Municipal Bond nets more than a 6% taxable security if an Iowa resi­
dent’s income is $10,000 a year? To equal the net return of a 5% Iowa Municipal, a taxable security must yield
according to income as follows:
$10,000 6.12%
$30,000 6.83%
$ 50,000 7.75%
15.000 6.31
35,000 7.08
100,000 11.86
20.000 6.45
40,000 7.26
150,000 13.00
25.000 6.67
45,000 7.54
200,000 14.39
We offer, subject to prior sale: $80,000, 5%, Richland, Iowa, School Building Bonds.
Exempt from Federal Income Taxes.
Tax-exempt in Iowa.

GEO. M. BECHTEL
& COMPANY
Established 1891
38 S. Dearborn St., Chicago.


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

Bechtel Building, Davenport, Iowa

10 Wall, New York City.

THE

October, 1919

NORTHWESTERN

loan bonds. Both these issues are tax exempt and as
they at the same time offer a high degree of safety they
have proven extremely popular during these days of
onerous taxation.
The envious position of the municipal bond is set
forth in as complete and concise a manner as could be
desired in the following clipping from columns of a
high grade financial journal of recent date:
“Since it became apparent that there would be a
high rate of income tax in this country for some time
to come the demand for municipal bonds among
wealthy investors has increased, while at the same time
the supply available in recent years has materially de­
creased owing to restrictions on issues by the govern­
ment during the war period. Since these restrictions
were removed numerous issues have been brought
out, and there will be an unusually large amount of
financing done during the balance of the year.
“Aside from being free from all forms of taxation
as well as legal for investment by savings banks and
insurance companies, municipal bonds have a splendid
record for financial soundness. Rarely indeed have
any of these issues defaulted in either interest or prin­
cipal, and next to United States government bonds,
municipal bonds are regarded as the safest form of se­
curity. That is why they are especially desirable for
investment of trust funds, estates and for persons with
limited means whose object is safety of principal.”
It is undoubtedly true, as stated in the above re­
print, that the offerings of municipal bonds during the
wa'r period were sharply curtailed. At the same time
there was a steadily increasing demand for them by the
moneyed or large income class and this left the supply
far short of the demand, but the municipalities them­
selves have been making valiant effort to keep up
with it.
There has beep an almost unprecedented demand for
funds from small towns and counties during the last
few months. In the first place their ordinary expendi­
tures were curtailed and building projects discouraged
during the war. They not only had these to make up
when hampering restrictions were removed but many of
them launched new projects that their returning citi­
zens might have paying work when they divested them­
selves of Uncle Sam’s uniform.
To meet these expenditures they made free recourse
to the capital market. During August for instance,
there were 521 issues of bonds disposed of, involving
402 states and municipalities, according to a reliable

93

BANKER

The Banker’s N ew
Opportunity
Every holder of Liberty Bonds in your
community is a potential purchaser of ad­
ditional conservative bond investments.
Are you prepared to m eet this new
opportunity?
With offices in the principal financial
centers, an extensive list of Government,
Railroad, Municipal, Industrial and Public
Service corporation bonds and an organiza­
tion trained in the purchase and sale of such
securities, we offer exceptional facilities for
assisting you in the development of this new
market.
An expression of interest will bring
additional information without obligation on
your part.

HALSEY, STUART &, CO.
INC O R P O R A TE D — S U C C ES SO RS TO

N. W . H A LSEY & CO., C H IC A G O

2 0 9 S O . L A S A L L E S T R E E T , C H IC A G O
NEW

YORK

P H IL A D E L P H IA
D E T R O IT

BOSTON
ST.
M IL W A U K E E

LO U IS

SE C U R E D N O TE S
We can offer secured notes maturing in six months
on which the net yield is 7% per cent or more. The
notes are issued by well-rated concerns dealing ia
high grade publications, pianos and home furnish­
ings. Each loan is secured by customers’ notes at a
margin of 50 per cent or more on which collections
made are remitted monthly. . Usually 40 per cent or
more of each loan is repaid from collections prior to
maturity without rebate of interest.
Denominations:

$3,000, $2,500, $2,000, $1,500, $1,000.

W M . A . LA M S O N & CO.
Commercial Paper and Investments.

60 Wall Street,

New York.
Est. 1904.

H . E . H E N D E R S O N , T r e a su r e r

I. C. ST A N L E Y , S e c r e ta r y

FA R M

iiiiiiiiin iiiiiiiH in iiiu in in iiiiin in in iin in iiin iiiiiiiin iiin n in n in iin n iin iiiiiiiiiiiiiiiiiiiiiin in iiiiiiiiiiin n in i

LOANS

v iiiiiiiiiiiiiin iiiiiiiiiiiiitiiiu iiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiin iiin iH iiiin iiiiiiiiin iiiiiiiiiiiiin iitiiiiim iin iiiiiiiiin

We are prepared to loan on the best improved farms In Iowa, as high as $150 per acre, and are in a position to
accept applications for March 1st closing. We also operate in Southern Minnesota.
If a customer of yours has a first and second mortgage on his farm, suggest that he put the loans in one and
write us for terms and privileges.

American Mortgage & Securities Company
H o m e Office
M a n c lie sie r , Io w a


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

CEDAR RAPIDS, IOWA
CAPITAL $200,000.00
Surplus and Profits $25,000.00

General offlce
H I g le y B u ild in g
C edar R a p id s, Io w a

94

THE

NORTHWESTERN

EXEM PT
From all Federal, State
and Local Taxes
We Own and Offer, Subject to Prior Sale

$217,000
30.000
23.000
65.000
25.000
115,000

Maturity. Yield.
Pottawattamie Co., Funding 5s 1924-39 4.60%
Osceola, Iowa, School........... 5s 1939
4.60%
Dakota City, la., School .. . 5s 1927-38 4.75%
Akron, la., School .............5s 1930-39 4.70%
Geneva, Neb., Sewer...5 y 2s 5-20 Yr. 5.00%
4.80%
City of Huron, S. D .............. 5s 1939

We recommend these securities to conservative
buyers. Favorable legal opinion of Wood & Oakly
or Chapman, Cutler & Parker furnished.

Bankers M ortgage Co.
CAPITAL $2,000,000
Corner Sixth and Walnut Streets
Tel. Walnut 2810, 2011, L. D. 33
Des Moines, Iowa
All Issues Government, State, City, County,
School, Drainage and Road Bonds
Bought and Sold for Cash.

C. W . BRITTON COM PANY
520-21 Davidson Bldg.
SIOUX CITY, IOWA

Commercial Paper
Investments
B A N K S B O U G H T A N D SO LD
15 Y ea rs

B a n k in g E x p e r ie n c e

BANKER

October, 1919

compilation. In the aggregate these issues had a par
value of $57,022,280, which compared with $75,546,160
in July and $32,153,413 in August, 1918. From Jan­
uary 1 to September 1, 1919, there was a total of $440,995,822 sold as against $262,818,844 for the entire
year 1918.
This graphically shows the enormous increase in the
money demand from municipalities. It is reasonably
safe to say that the last four months’ sales will average
at least $40,000,000 of municipals a month. At that rate
the year’s total would be approximately $600,000,000
or more than $100,000,000 in excess of any previous an­
nual flotation of domestic state and municipal issues.
Returning again to the subject of the farm loan
bond, which has been in almost as great demand as
the municipals, it might be well to.give this subject a
little consideration. These securities at the present
time are in an extremely enviable position, because of
the tax exemption allowed them by the government,
which practically classes them as “quasi-government”
securities. The point of interest to the security world
is whether or not they will permanently occupy that
position.
Farm mortgage bankers have been steadfastly com­
bating this special privilege allow'ed to joint stock and
federal land banks ever since they were evolved,
through the passing of the farm loan act. This was
only natural as it plqced rather unfair competition in
the path of the old established farm mortgage banks
who have been financing the farmer almost since the
beginning of American banking. It now appears that
this opposition stands a chance of bearing fruit.
The first gun was fired when suit was begun in the
federal court at Kansas City in September to test the
validity of federal land bank and joint stock land bonds.
An opposing array of legal talent, including some of
the most noted and ablest lawyers in the country, are
engaged in the suit. Involved are the farm mortgage
bankers on the one hand, who contend the features of
the bonds at issue are illegal and unconstitutional. Op­
posing them are the land banks having the authority
to issue the bonds and the government.
The point is that if the suit is successful the land
bank bonds will take a back seat in the financial world
as their main selling argument—“Tax exempt”—will
be gone. The issue is whether congress exceeded its
constitutional power in making the declaration, in the
passing of the. farm loan bill, that the bonds are “in­
strumentalities” of the government. To the layman

F A R M « g j g g |§ ^ L O A N S
"We have unlim ited funds for choice loans from $1 0 0 to $125 per acre, as w ell
as for standard loans not exceeding $80 per acre.
This.year more than ever you need a connection that can furnish money for the large loans along with the small ones.
T h e M id la n d S y ste m N o t O n ly C o vers T h e se P o in ts, B u t G ives Y o u P e rso n a l S ervice

MIDLAND MORTGAGE COMPANY
418-2 0 C ed a r R a p id s S a v in g s B a n k B u ild in g

CEDAR RAPIDS, IOW A

F . C . W a p le s , P r e s i d e n t


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Federal Reserve Bank of St. Louis

O F F IC E R S A N D D IR E C T O R S
C lif fo rd D e P u y , V ic e P r e s i d e n t
R o b e r t S . S in c l a i r , V ic e P r e s i d e n t
W . L . C h e rry
I n g r a m B ix l e r , T r e a s u r e r
W . W . O tto

A . H . B i e r k a m p , S e c r e ta r y

THE

October, 1919

NORTHWESTERN

95

BANKER

that would appear to be a very small technicality over
which to wage a protracted lawsuit, but the deciding
of the case will be one of the most vital contests the
investment banking element of the country has wit­
nessed in a good many years.
FEDERAL LAND RESERVE BANKS,
The Federal Land Banks were created by class
legislation, while the Federal Reserve Banks are insti­
tutions of benefit to the entire country, said E. D.
Chassell, Secretary of the Farm Mortgage Bankers’
Association of America.
After showing the losses to the National Treasury
which necessarily follow tax exemption of securities,
he said that he was constrained to compare the busi­
ness transacted by the two classes of banks, because
the friends of the Federal Land Banks frequently
state that they are supplementary to the Federal Re­
serve Banks, performing the service for the farmers
which the Federal Reserve Banks perform for busi­
ness men.
He called attention to the fact that the capital, sur­
plus and income of both banks are exempt from taxa­
tion, but that the friends of the Federal Land Banks
omit to state that the capital, surplus and income of
the Federal Land Banks is exempt when they claim
that the bonds sold by the Federal Land Banks should
be exempt.
He further said:
“In addition to the enormous loss that is and will
be caused by tax exemption, the Federal Land Bank
system costs in cold cash over a half a million dollars
a year to the national treasury. At the present time
the Federal Land Banks are using over eight million
dollars* worth of free capital which was furnished
them by the Treasury Department in compliance with
the law providing that no interest, profit or dividend
shall go to the National Government for the use of the
money. We are now paying 4 per cent interest on
several million dollars’ worth of bonds which the Gov­
ernment had to sell to get money to use to replace the
free money invested in Federal Land Bank stock.
That costs $360,000 a year. The appropriation for the
expenses of the banks and the Farm Loan Bureau for
the current year is $241,820.00, a total annual cash
outlay of $601,820.00.
“The matter of expenses is one of the differences
between the Federal Reserve Bank and the Federal
Land Bank. While the Government furnished nearly
all of the $9,000,000.00 for the original stock for the
Federal Land Barfks, it does not furnish any free stock
H o w a r d J. C la rk

H. W. B yers

We have reprinted in booklet
form the three articles entitled
“Speaking of Oil” by William C.
VanAntwerp which recently ap­
peared in The WallStreet Journal

Copies on request

C h a rles H u tc h in s o n

Clark, B yers & Hutchinson
ATTORNEYS AND COUNSELLORS AT LAW
Des Moines, Iowa

PRICHITT & CO.

. General Civil Practice.

MEMBERS NEW YORK STOCK EXCHANGE

Prompt and careful attention given to all business
entrusted to us.

60 B RO A D W A Y

Attorneys for the Iowa National Bank, Des Moines
National Bank and Des Moines Savings Bank.


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Federal Reserve Bank of St. Louis

-

N EW YORK

96

THE

NORTHWESTERN

A s One of Iowa’s
M ost Prominent
Bankers Says:
“S in c e w e h a v e b,een p l a c i n g y o u r 3 3 - y e a r f a r m lo a n s
w i t h o u r la n d - o w n i n g c u s to m e r s w e f e e l w e h a v e r e n ­
d e r e d a r e a l s e r v ic e to th e m a n d o u r c o m m u n ity a n d a
r e a l a s s e t to o u r s e lv e s .”
Mr. B a n k e r :
B e fo r e y o u r c u s t o m e r a s k s f o r o n e o f t h o s e 3 3 - y e a r
f a r m lo a n s , w h y n o t w r i t e u s to d a y a n d b e in p o ­
s itio n to m a k e a l i f e lo n g c u s to m e r o f h im . L e t u s s h o w
y o u h o w p r o m p tl y a n d s a t i s f a c t o r i l y w e c a n c lo s e y o u r
f a r m lo a n s . T h e m o s t l i b e r a l t e r m s e v e r o ffe re d . A l­
w a y s in f u n d s .

The First Joint Stock
Land Bank
O F CHICAGO

Capital $600,000
D E S M O IN E S O F F IC E
Valley National Bank Bldg.

C H IC A G O O F F IC E
Continental & Commercial Bank
Building

G U T H U S T O N .............................. . ..................................P r e s i d e n t
O. F . S C H É E ............................................................V ic e P r e s i d e n t
JO H N H U N G A T E ......................................................... S e c r e t a r y

Capital $1,000,000.00
Fully Paid

Home Securities Co.
Sioux City, Iowa

High Grade Investments
Farm Mortgages
City Mortgages
Mortgage Bonds in D enom inations
$100.00, $500.00, $1,000.00.
Interest 6%.


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Federal Reserve Bank of St. Louis

BANKER

October, 1919

for the Federal Reserve Banks. While the Govern­
ment, by the free stock and the annual appropriation
for expenses, donates over half a million dollars a year
to the Federal Land Banks, the Federal Reserve Banks
and the member banks pay all of their own expenses.
“The Federal Reserve Bank is an institution to aid
business by furnishing short time credit. It discounts
the notes received from member banks and furnishes
the money on them for the demands of business. The
merchant, the miller, the grain dealer, the meat packer
or the farmer can be and are accommodated by the
Federal Reserve Bank on the same terms and with
equal readiness. It often happens that the farmer needs
a few hundred dollars to tide him over his wheat har­
vest or to pay expenses until he can market his cotton,
or to buy corn to feed his cattle and hogs for a few
months until they are ready for market. When the
member bank sends in the notes of merchants and other
dealers, the Federal Reserve Bank treats the notes of
the farmers the same as the notes of the other borrow­
ers, no distinction being made because of the occupation
of the borrower.
“With the Federal Land Bank the proceeding is dif­
ferent. These banks are purely for the farmer and no
others need apply. That is why the law is correctly
termed class legislation. The farmer goes to a Fed­
eral Land Bank and applies for a loan running thirtyfive years to the amount of 50 per cent of the value of
his real estate and 20 per cent of the insurable value of
his buildings. He declares that he desires to pay off an
existing debt, or to buy more land, to build buildings,
to buy machinery or stock, or to use the money for
any other purpose provided by law. The Federal Land
Bank finds some person who desires to avoid paying
Federal and local taxes, sells him bonds and loans the
farmer the money, confident that if the farmer or his
son does not pay the debt that his grandson or other
heir or assign will see that it is fully liquidated at the
end of the thirty-five years.
“If the miller., the grain dealer, the lumberman, the
merchant,_the packer, the liveryman, or the owner of
the electric light plant or waterworks applies to the
Federal Land Bank for a loan equal to 50 per cent of
their real estate and 20 per cent of the insurable value
of their buildings, stating they desire to enlarge their
business, buy additional land, to erect more buildings,
to buy machinery, pay off existing indebtedness, or for
other reasonable purpose, they will be refused. They
cannot borrow for thirty-five years nor for five years.
They will all be given the same reason—they are not
farmers^ Their credit may be first-class, their develop­
ment might be a fine thing for the community, but as
the Federal Land Banks were created exclusively for
farmers, no other class need apply.”
T E S T CASE ON V A L ID IT Y OF FARM LO AN
B O N D S.

The validity of Federal Land Bank bonds and Joint
Stock Land Bank bonds will be tested in the courts
in the trial of a case filed in the Federal Court at Kan­
sas City.
Former Chief Justice Charles E. Hughes has been
retained to represent the holders of Federal Land Bank
bonds. The United States has instructed the district
attorney at Kansas City to appear and defend. The
Joint Stock Land Banks will be represented by former
Attorney General Wickersham and by Hon. W. G.
McAdoo, former secretary of the treasury. The great

October, 1919

THE

NORTHWESTERN

legal talent employed by parties who desire to continue
the tax exemption of farm loan bonds shows that they
consider the case critical as well as of supreme im­
portance.
Hon. Wm. 'Marshall Bullitt, of Louisville, Kentucky,
formerly solicitor general of the United States, and
Frank Hagerman, of Kansas City, will appear for
plaintiff in attacking the validity of the bonds.
MODERN BANK ORGANIZATION,
Under the ever increasing pressure of modern busi­
ness methods many time honored customs and tradi­
tions have been shattered. Sometime ago banking
which had formerly been the most conservative busi­
ness joined the march of progress, and a modern bank
has even been called “a department store of finance.”
Nor has bank organization been proof against the in­
evitable. Today, instead of calling together a few
financiers in a closed meeting to underwrite the capi­
tal stock of a proposed bank, wre find a well-directed

BANKER

97

GUARANTEE
MORTGAGE
& FI N AN C E GO.
D e s M o in e s , Io w a
A U T H O R IZ E D C A P IT A L $ 2 ,000,000.00
Buying and Selling First and Second
Mortgages, Government Bonds, State,
County, Municipal, Drainage and Im­
provement Bonds.
Invest your surplus funds in our Guaranteed
Mortgages.
O F F IC E R S
R . R. P A R R O T T , P r e s id e n t
C. H . M A R T IN , T r e a su r e r
E . J . K E L L E Y , S e c r e ta r y

1002 R e s i s t e r a n d T r ib u n e R id s .
T e le p h o n e W a ln u t 1385

The Des Moines Stock
Exchange
Investm ent Brokers
CAPT. JOHN R. WALLER,
Chairman Organization Committee, Interna­
tional Bank, Washington, D. C.

campaign to insure a wide distribution of stock, so that
it will be a permanent asset to the bank and will in­
sure the direct interest not only of a few, but of hun­
dreds or even thousands.
When it was learned a few months ago that the or­
ganization board of the Great Lakes Trust Company,
of Chicago, with a proposed capital of three million
dollars was sending broadcast invitations to subscribe
for stock in any amount from one share up, their pro­
gress was watched with marked interest, not to say
scenticism by the banking world. If, however, we are
to judge by results, a capital stock over subscription
or 25 per cent, together with an appreciation of 15
points in the market price of the stock, and deposits
of over three million dollars on the opening day, it
would seem that the scepticism was entirely unwar-


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

% Specializing in Iowa

Corporation and Bank
Stocks.
% We buy and sell con­

trols and interests in
banks anywhere in
Iowa.

E. McGuire, Mgr.

SII Fleming Bldg.

Des Moines, Iowa

98

THE

NORTHWESTERN

ranted, and that this method of organization bespeaks
the fullest measure of solidity and success.
Now comes the organization committee of the Inter­
national Bank, of Washington, D. C., composed of
some of the strongest banking and manufacturing in­
terests in the United States, and announces the estab­
lishment of a “progressive, up-to-the-minute financial
stitution, which will transact business and render serv­
ice in all parts of the world.” A general invitation is
extended to 2500 patriotic Americans to become iden­
tified with this great new bank.
Even before the Great Lakes Trust Company had
been planned, a group of American bankers had de­
cided on the organization of the new International
Bank, and were making an analysis of banking condi­
tions throughout the nation to determine the most
favorable location. The National Capital was selected
because of its important position in the world’s busi­
ness and financial market. Here we find another new
idea in scientific bank organization. The matter of or­
ganization is as fully entitled to scientific study as the
practical operation of the bank itself. The organizers
are entitled to credit for this as well as for the idea of
securing the co-operation of a large number of share
holders working toward a common goal, rather than
the one man bank of the past.
Another progressive feature in the organization is
an advisory committee consisting of one or more prom­
inent bankers and business men from each of the prin­
cipal banking centers of America. These men are qual­
ified to advise concerning matters arising in their lo­
calities. ,A foreign advisory board is in close touch
with banking conditions in foreign countries in which
the bank intends to operate.

BANKER

October, 1919

The plan of the International Bank includes the es­
tablishment of branch banks abroad, and the scope of
the institution will embrace all branches of modern
banking. Eight correspondent offices have already
been established in the United States as well as foreign
offices in Canada, England, France, Porto Rico, Ha­
waii, Cuba and the Philippine Islands.
The organization plans of the International have
occasioned no little comment in the National Capital
and its progress in active operation will be watched
with great interest in banking and commercial circles.
The organization should be completed before the first
of the year, so that the opening day may take place in
the early months of 1920. The opening will doubtless
be made the occasion for appropriate banking cere­
monies in conformity with the plans of the organiza­
tion committee which is made up of twenty prominent
American bankers and business men as follows, with
Gapt. John R. Waller as chairman:
A. A. Cooper (Financier). A. A. Cooper Wagon & Buggy
Company; President A. A. Cooper (Inc.), Dubuque, Iowa,
Chairman of the Committee; R. E. Bell (Business Manage­
ment). McCall-Brownell Company, Aeolian Building, New
York City, N. Y.; DeMuth & Company; K. J. Farup (Banker).
President Oregon-Dakota Company, President First National
Bank, Park River, N. D.; H. H. Hampton (Realtor). Presi­
dent Hampton-Keller Company, Cleveland, Ohio; L. J. Hart
(Financier). President Agricultural & Mechanical College of
Texas, Vice president Commercial Loan and Trust Co., San
Antonio, Texas; Honorable John Burke, Treasurer of the
United States; Frank Kenna (Attorney and Banker). Direc­
tor American Bank & Trust Co., Old Colonies Security Co.,
New Haven, Conn.; Henry G. Langworthy, M. D. Director
Federal -Deposit & Trust Co., Dubuque, Iowa< President TriState Medical Society (Iowa, Wisconsin and Illinois).; A. A.
Loetscher (Manufacturer). Vice president Loetscher-Burch
Co., Des Moines, Iowa, President Farley & Loetscher Mfg.

W e advise th e p u rc h a s e and
a re m a k in g a S p e c ia lty of

U. S. Government Bonds
and are prepared, at any time,
to buy or sell large or small lots
We have prepared a circular on investment securities
which we shall he glad to send you on request.

Kid<lei#,Peat>ody6'Co.
n j¡ D e v o n s liiife Si;*
B


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Federal Reserve Bank of St. Louis

o

s t o

n

l^ W a ll S t r e e t
JNTewYoa-lc

October, 1919

THE

NORTHWESTERN

99

BANKER

Jfeberal Cattle loan H>octetp
VñW ty

Rational Pank Putlbmg

Beö Jflotneö

Wi.
“Cooperative”

For Cattlemen
For Bankers
“In the heart of the Feeder D istrict”

Officers:
EDWARD HESS,
President
JULIUS D. ADELMAN,
Vi ce President

VINCENT STARZINGER,
Vice President

CHAS. A. MAINS,
Vice President

A. M. KOPF,

FRANK S. SHAW,
Secretary-Treasurer

FORREST M. LARMER,
Asst. Secretary

Vice President

LEON GOODMAN,
General Manager


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Federal Reserve Bank of St. Louis

100

THE

NORTHWESTERN

Foreign Trade and
Foreign Investments
Many of the large banking institutions in the United
States have created foreign departments and have
sent representatives abroad in order to obtain first
hand information and to establish connections. How­
ever the expansion of our export business must rely
in large measure on the foreign exchange situation.'
The following figures indicate how serious this sit­
uation is:
are down 90 per cent.
Italian Lire
French Francs are down 60 per cent.
Belgium Francs are down 65 per cent.
English Pounds are down 15 per cent.
Dutch Florin
are down 10 per cent.
Swedish Kroner are down 10 per cent.
Danish Kronor are down 20 per cent.
Swiss Francs
are down 10 per cent.
This means that these nations have to pay respec­
tively 90 per cent, 60 per cent, 65 per cent, etc., more
for our goods than we have to pay ourselves.
Such a situation not only imposes a great burden on
the European nations, but also reacts to disadvan­
tage of Americans, as it interferes very seriously
With development of our export trade.
There are four ways to improve the foreign exchange
situation:
(a)
(b)
(c)
(d)

Shipment of gold to this country.
Shipment of goods to this country.
Extension of long term dollar credits.
Purchase of foreign securities.

The first is impossible, and besides, we do not need
o r want more gold.
The second is slowly readjusting itself.
The third is practicable, but is a banking transaction.
The fourth is an investment proposition with un­
usually attractive features, namely:
(a) A chance for the enhancement of the prin­
cipal and interest involved.
(b) Helping our Allies and our best customers.
(c) Helping our exports and thereby helping in
the development of our own industries.
(d) Improving our foreign investments by sup­
porting the foreign exchange situation.
We have prepared some very interesting facts and
figures relative to foreign exchange, foreign trade
and investments in the internal loans of strong
European nations. The statistics we have gathered
together will be furnished to anyone interested send­
ing for circular.

A. B. Leach & Co., Inc.
*

In v e stm e n t Secu rities
New York
St. Louis

Minneapolis
Milwaukee

Cleveland
Detroit

105 South La Salle Street,
Chicago

■^VUTE-Ph i LL/p ,
---- -

INVESTM ENT
B A N K E R S -------;

co

PU TNA M BLDG.

D a v e n p o r t , Iowa
G E O .W H IT E , P r e s


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Federal Reserve Bank of St. Louis

B .A .P H IL L IP S , V. Pres.

BANKER

October, 1919

Co., Sioux Falls, S. D.; Farley-Loetscher Mfg. Co., Dubuque,
Iowa.; Carleton McCarthy (Owner Line Yards). President
Pyramid Lumber Co., Secretary M. H. McCarthy Investment
Co., Treasurer Standard Lumber Yard Co., Dubuque, Iowa;
Stanley Macintosh (Banker), Treasurer Mishawaka Trust &
Savings Co., Mishawaka, Indiana; S. A. Nelson (Banker).
President F ir s t. National Bank, Powell, Wyoming; J. A.
Northrup (Banker). President Crookston State Bank, Crookston, Minn.; U. G-. Orendorff (Manufacturer and Financier)
Secretary and Treasurer Parlin & Orendorff Co. Canton, 111.;
Charles A. Roach (Manufacturer), President Roach Candy
Company, Minneapolis, Minn.; M. M. Sessions (Banker).
President Sessions Loan and Trust Co., Marietta, Georgia;
W. W. Spaid (Banker). President Dupont National Bank,
Hibbs & Co., Bank, Washington, D. C.; E. W. Spicer (Insur­
ance). President American Bankers Insurance Company,
Chicago, 111.; John R. Waller (Attorney). American Securities
•Company, American Bankers Insurance Company, Chicago,

Capt. Waller is a brother of A. C. Waller, treasurer
of the Federal Deposit & Trust Co., of Dubuque.
CAUTION ADVISED IN “LAND BOOM.”
The serious question in the farm land “boom” in the
corn belt states and other sections is whether the prices
of farm products will remain at their present levels.
The department of agriculture is making a careful in­
vestigation of the present movement of prices with a
view to determine its probable effects. As a prelim­
inary result of its investigations the department offers
the following caution to farmers:
Much of the present speculative activity has been
due to the fact that speculators have been able to catch
some farmers unawares, buying their farms at a much
lower figure than was justified in relation to prices in
adjoining regions. Therefore, you should be careful
about selling to a speculator who is buying to sell
again. It it is worth more to him it probably may be
worth more to you. If you own a farm and desire to
continue farming be very sure before selling that you
can obtain out of the proceeds of the sale as good a
farm as you have sold.
If you desire to purchase a farm, you should be very
sure that the price you pay is fully justified by the
probable net earnings of the farm when conditions be­
come more normal.
Be careful that the buyer of your farm is able to
complete his payment on March first in case he fails to
resell. In general it is safe to require an initial cash
payment of one-third the sale price.
Be cautious about speculating yourself. Especially
do not buy on a narrow cash margin with the expecta­
tion that you will be able to sell and obtain the neces­
sary means of settling your contract. You may not be
able to effect a sale. A land “boom” may collapse sud­
denly.
APPEL TRUST OFFICER.
^Vallee O. Appel, formerly first lieutenant in Chica­
go’s famous 344th infantry of the Blackhawk division,
has been appointed trust officer of the Great Lakes
Trust Company. Lieutenant Appel’s addition to the
staff of the Great Lakes is in pursuance of the bank’s
policy of recognizing the value in peace as well as in
war of the former members of the A. E. F. The navy
is represented in the bank’s personnel by Lieutenant
William F. Roberts.
Mr. Appel entered the First Officers Training Camp
at Fort Sheridan, Illinois, in May, 1917, where he re­
ceived his commission. He was assigned to the 86th
division at Camp Grant and went overseas as an officer

October, 1919

THE

NORTHWESTERN

in that unit. Later he was transferred to the 28th
Keystone division, of Pennsylvania. After the signing
of the armistice, Lieutenant Appel was detailed as
lecturer in law at the A. E. F. University, Beaune,
France.
Vallee O. Appel is the son of J. M. Appel who has
been prominent in banking circles for many years,
being now managing officer of the Highland Park State
Bank and the First National of Wilmette. Before his
entrance into the military service the junior Appel
practiced law in Chicago for three years. He is .a
graduate of the University of Chicago and Harvard,
and a member of the Hamilton Club, South Shore
Country Club, Harvard Club, Signia Alpha Epsilon,
Chicago Bar Association and is a 32d degree Mason
and a Shriner.
WEALTH,
Poor, am I? Nay, I am rich, though penniless. I
have my wish—can all your wealth buy more? You
own the land. I own the landscape. It is well. I
would rather hear the laughter of my little boy, the
song that springs involuntarily to his mother’s lips; I
would rather be cashier of a bank of kisses with a bil­
lion in reserve; I would rather direct a syndicate of
smiles paying daily dividends of honest joy; I would
rather be treasurer of a trust company having a paid-up
capital of splendid hope and a charter perpetual in this
world and the next—I would rather own these dollarless resources of content than to be able to draw my
check for a million with which I could purchase neither
love, happiness, nor immortality.—Burritt Hamilton.
The Mercantile, Bank of the Americas announces the


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

BANKER

Hon. Frank S. Shaw,
President
Edward Hess,
Vice President

101

Chas. A. Mains,
Vice President
Julius D. Adelman,
Secretary

Self-Liquidating Securities
T h e s a f e a n d p r o fita b le in v e s t m e n t o p p o r­
t u n it y fo r su r p lu s fu n d s .

The Iowa Guarantee Mortgage Corporation is a
strongly-financed institution, handling deferred pay­
ment paper on automotive vehicles, amply covered
by the forced-sale value of the machine.
This paper carries a liberal rate of discount, is of
short maturity and self-liquidating. Notes are de­
posited wit'h the Iowa Loan & Trust Co. as trustee,
and our collateral trust notes issued against them.
Every investment you make with us is doubly safe­
guarded.
W r ite or c a ll o n y o u r n e x t tr ip t o D e s
M o in es— le t u s su b m it f u l l in fo r m a tio n r e ­
g a r d in g o u r p la n s .

Iowa Guarantee Mortgage
401-404 Valley N at’l Bank Bldg., Des Moines, Iowa

102

THE

NORTH W EST ERN ,BANKER

October, 1919

The N ew Meaning of Advertising
BY CLIFFORD DE PUY

DVBRTISING has a new meaning and a new force
/ j L today. It has long been recognized as the dynamo
of business and the builder of industry. We have
seen its power used in building great factories whose
products are known the world over. We have seen it increase the deposits and bank accounts of the financial
institutions of the country.
Advertising emerges from the war with new victories.
We saw its driving, compelling power unite 100,000,000
people into a great army fighting for world democracy.
We saw its force used to raise billions of dollars to equip
an army of over 4,000,000 men to be transplanted to the
fields of France, there to nobly do their part in the most
hellish war since the dawn of time.
a

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Now we have returned to the arts of peace, and advertising like a great giant that has helped to fight a
good fight, steps forward with new laurels upon its 'head
and new medals upon its breast as tokens of the things
it has achieved. As advertising men we always knew of
its power. Now the world knows of it. In the financial
world advertising will be used as never before, to increase bank accounts, to sell bonds, to market securities.
And the financial publisher who does not assist his advertisers to secure maximum service is short sighted
indeed. He is overlooking his greatest opportunity to
place financial advertising on the high plane where it
can render the greatest service to the greatest number.

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INDEX TO ADVERTISERS

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A
A c o r n P r i n t i n g C o....................................... 75
A d j u s t a b le T a b le C o.................................. 68
A m e r ic a n B a n k P r o t e c t i o n C o.............. 51
A m e r ic a n B o n d in g a n d C a s u a l t y Co. 91
A m e r ic a n C o m m e r c ia l a n d S a v i n g s . 38
A m e r ic a n F i x t u r e Co................................ 66
A m e r ic a n M o r tg a g e a n d S e c u r itie s
C o m p a n y ..................................................... 93
A m e r ic a n N a t i o n a l B a n k ....................... 52
A m e r ic a n P e r f o r a t o r . C o ........................... 18
A m e r ic a n S a v in g s B a n k . ....................... 32
A m e r ic a n S t a t e B a n k ................................ 30
A n a k i n L o c k W o r k s .................................. 24
A t l a n t i c N a t i o n a l B a n k ............................ 12
A u to T r a d e M u t u a l ..................................... 89
A u to m o tiv e I n s u r a n c e C o ...................... 90
B
B a c k e r , J a c o b .............................................. 53
B a n k e r s ’ A c c id e n t I n s u r a n c e C o......... 86
B a n k e r s A u to I n s u r a n c e Co.................. 91
B a n k e r s H o ld in g a n d I n v e s t m e n t Co. 53
B a n k e r s L if e I n s u r a n c e C o.................... 90
B a n k e r s M o r tg a g e Co................................ 94
B a n k e r s S e r v ic e C o.................................... 53
B a n k e r s T r u s t Co., D e s M o in e s ............ 22
B a r s h a l l S te e l E q u ip m e n t C o.............. 74
B e a c h , W ill A., P r i n t i n g C o.................. 74
B e a c h , W . W ., C o......................................... 70
B e c h te l, G eo. M. & C o................................ 92
B illin g s , P r o u t y & T o m p k i n s .............. 60
B is h o p , E . J . . . . ' .............................
60
B la c k H a w k N a t i o n a l B a n k ................... 32
B o y d & M o o r e ................................................ 70
B o w m a n P r i n t i n g C o.................................. 81
B r e a m , E m o r y D ........................................
88
B r i t t o n , C. W . C o......................................... 94
B r o w n H o t e l ................................................. 101
C
C e d a r R a p id s N a t i o n a l B a n k ................ 31
C e d a r R a p id s L i f e ....................................... 90
C e n tr a l N a t i o n a l F i r e I n s . C o............. 84
C e n tr a l S t a t e B a n k , D e s M o in e s ......... 36
C e n tr a l T r u s t Co. o f I l l i n o i s ................ 20
C e n tr a l T r u s t Co. o f D e s M o i n e s . . . . 24
C e n tr a l T r u s t Co., M a so n C i t y .............. 45
C h e m ic a l N a t i o n a l B a n k .......................... 22
C itiz e n s S a v in g s B a n k .............................. 41
C itiz e n s N a t i o n a l B a n k ............................ 45
C ity N a t i o n a l B a n k , C l i n t o n ................ 31
C ity N a t i o n a l B a n k , M a so n C i t y ......... 26
C la r k , B y e r s & H u t c h i n s o n ................... 95
C lip le s s P a p e r F a s t e n e r Co..................... 67
C o lf a x H o t e l .................................................. 45
C o m m e r c ia l N a t i o n a l B a n k , W a t e r ­
lo o ........................................
39
C o rn B e lt P a c k i n g C o................................ 63
C o rn E x c h a n g e N a t i o n a l B a n k ............ 14
C o n t i n e n t a l a n d C o m m e r c ia l B a n k s . 15
C o m m e r c ia l S a v in g s B a n k , M a so n
C ity ............................................................ . .1 0 1
C o m m e r c ia l
S a v in g s
B ank,
D es
M o in e s ......................................................... 31
C o m m o n w e a lth L if e I n s u r a n c e C o ... 85
C r a d d ic k S e r v ic e .............................
48
C u p p le s E n v e lo p e C o.................................. 79
C u s t e r C o u n ty B a n k .................................. 57
D
D a k o t a T r u s t & S a v i n g s ......................... 59
D e s M o in e s D u p l i c a t i n g C o.................... 81
D e s M o in e s L if e & A n n u i t y C o............. 87
D e s M o in e s N a t i o n a l B a n k ................... 44
D e s M o in e s S to c k E x c h a n g e ................ 97
D e s M o in e s T e n t & A w n in g C o........... 70
D e s M o in e s T r u s t C o.................................. 24
D r a k e - B a l l a r d C o......................................... 55
D r o v e r s N a t i o n a l B a n k .............................103
D u b u q u e N a t i o n a l B a n k ......................... 41
E
E ld r i d g e S a v in g s B a n k ............................ 36


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

E m m e t s b u r g N a t i o n a l B a n k ................ 33
E q u it a b l e L if e I n s u r a n c e C o.................. 83
F
F a r m e r s L iv e S to c k I n s u r a n c e C o ... 89
F e d e r a l A d d in g M a c h in e C o.................. 78
F e d e r a l F i n a n c e C o..................................... 101
F e d e r a l C a tt l e L o a n S o c i e t y ................ 99
F e d e r a l L a n d B a n k , O m a h a ................... 2
F e d e r a l D e p o s it & T r u s t C o.................. 33
F i n n e g a n , F . L ................................................ 60
F i r s t J o i n t S to c k L a n d B a n k , C h i­
c a g o .................................
96
F i r s t & S e c u r i t y N a t i o n a l B a n k ......... 52
F i r s ’t N a t i o n a l B a n k , B o s t o n ................ 17
F i r s t N a t i o n a l B a n k , C h i c a g o .............. 13
F i r s t N a t i o n a l B a n k , C o u n c il B lu f f s . 42
F i r s t N a tio n a l B a n k , D a v e n p o r t.. . .
2
F i r s t N a t i o n a l B a n k , D u b u q u e . ......... 41
F i r s t N a t i o n a l B a n k , D u l u t h ................ 51
F i r s t N a t i o n a l B a n k , S io u x C i t y . . . . 2
F i r s t N a t i o n a l B a n k , S t. L o u i s ............ 19
F i r s t N a t i o a n l B a n k , S t. P a u l .............. 51
F i r s t N a t i o n a l B a n k , W a t e r l o o ............43
F i r s t S t a t e B a n k . ....................................... 33
F i r s t T r u s t & S a v in g 's B a n k . . . . . . . . . 35
F i s h e r C o m p a n y ......................................... 75
F l o u r C ity O r n a m e n t a l I r o n C o........... 54
F t . D e a r b o r n N a t i o n a l B a n k ................ 18
F o n t e n e l l e H o t e l ......................................... 49
F r e e m a n C o m p a n y ..................................... 72
G
G a te s B u s in e s s C o l l e g e s . . . . . .............. 44
G i r a r d N a t i o n a l B a n k .............................. 13
G o d s h a ll, O...............................
43
G o ld S ta b e c k C o............................................. 52
G o r d o n -V a n T in e C o.................................. 71
G r e a t L a k e s T r u s t C o...................
21
G r e a t W e s t e r n A c c id e n t I n s . C o......... 88
G u a r a n t y C a tt l e L o a n C o......................... 11
G u a r a n t y L if e I n s u r a n c e Co.................. 83
G u a r a n t e e M o r t g a g e & F in a n c e C o . . . 97
G u a r a n t y .T r u s t C o...................................... 23
G u th r ie , W m . & C o.................................... 60
H
H a ls e y , S t u a r t & C o.................................... 93
H a m m o n d P r i n t i n g C o............................. 67
H a m m a r s t r o m , A. H .................................. 60
H a n o v e r N a t i o n a l B a n k .......................... 2
H a r g e r & B l i s h ............................................ 64
H a w k e y e T ir e & R u b b e r C o.............. 76-77
H o lla r , F . P , & S o n ..................................... 43
H o m e S e c u r i t ie s C o .................................... 96
H o m e s te a d C o m p a n y .............................. 81
H o w a r d H e a t e r C o...................................... 69
I
I o w a B o n d in g & C a s u a l t y C o................ 85
Io w a G u a ra n te e M o rtg a g e C o rp o ra ­
ti o n ................................................................. 1 0 1
I o w a L it h o g r a p h i n g C o........................... 68
I o w a L o a n & T r u s t C o........... .................. 25
I o w a M u tu a l L ia b i l i t y I n s . C o.............. 86
I o w a N a t i o n a l B a n k , D e s M o i n e s .. . . 37
I o w a N a t i o n a l F i r e I n s u r a n c e C a .. . . 83
I o w a N a t i o n a l B a n k , D a v e n p o r t . . . . 35
I o w a S eed C o.................................................. 60
I o w a S t a t e I n s . C o....................................... 89
I o w a T r u s t & S a v in g s B a n k ................ 35
J
J u l i e n H o t e l .............................................., . 57
J o h n H a n c o c k L if e I n s . C o.................... 85
J o y c e , W m . B. & C o.................................... 82
K
K id d e r , P e a b o d y & C o................................ 98
K n a u t h , N a c h o d & K ü h n e ....................... 28
L
L a m s o n , W m . A. & C o................................ 93
L a rm o n , L. L .................
47
L e a c h , A. B . & C o..........................................100
L e a v i t t & J o h n s o n N a t i o n a l B a n k . . 40

L e a v i t t & J o h n s o n T r u s t Co.................. 2
L e M a r s P r i n t i n g C o............................. ... 72
L e n n o x F u r n a c e C o.................................... 80
L iv e S to c k E x c h a n g e N a t ’l B a n k . . . . 17
L iv e S to c k N a t i o n a l B a n k , O m a h a . . . 34
L iv e S to c k N a t ’l B a n k , S io u x C i t y . . 33
L y tl e Co. ......................................................
73
M
M a r s h a l l O il C o............................................. 79
M c N a m a r a - K e n w o r t h y C o....................... 72
M e c h a n ic s & M e ta ls N a t i o n a l B a n k . . 18
M e c h a n ic s S a v in g s B a n k ....................... 43
M e r c h a n t ’s N a t ’l B a n k , B u r l i n g t o n . . 41
M e r c h a n ts N a t i o n a l B a n k , C e d a r
R a p id s ......................................................... 40
M e r c h a n ts N a t i o n a l B a n k , O m a h a . . 46
M e r c h a n ts L o a n & T r u s t C o.................. 23
M e s s e n g e r P r i n t i n g C o.............................. 67
M id la n d M o r t g a g e C o................................ 94
M id la n d N a t i o n a l B a n k ............................ 50
M id w e s t N a t i o n a l B a n k & T r. C o . . . . 17
M in n e h a h a N a t i o n a l B a n k ..................... 59
N
N a t i o n a l A m e r ic a n L i f e ......................... 89
N a t i o n a l B a n k o f t h e R e p u b li c ............103
N a t i o n a l C ity B a n k ................................... 28
N a t i o n a l C ity Co.......................................... 16
N a t i o n a l F i d e l i t y L if e I n s . C o............. 87
N a t i o n a l S t a t e B a n k .................................. 34
N ic o ll t h e T a i l o r ......................................... 28
N o rd , C a r l E ..................................................7 81
N o r t h e r n T r u s t C o....................................... 22
N o r t h w e s t e r n N a t i o n a l B a n k ................ 59
N o r t h w e s t e r n N a t i o n a l L i f e ................... 2
N o r t h w e s t e r n S ta m p W o r k s ................ 55
O
Office E q u ip m e n t & S u p p ly C o............. 70
O m a h a N a t i o n a l B a n k .............................. 47
O v e r s tr e e t, J . W . C o ................................. 53
P
P a c k e r s N a t i o n a l B a n k ............................ 47
P e a r s e , R o b in s o n & S p r a g u e ................ 74
P e o p le s S a v in g s B a n k .............................. 34
P e o p le s T r u s t & S a v in g s B a n k ............ 36
P l a n k i n t o n H o t e l ....................................... 57
P r i t c h e t t & C o................................................ 95
R
R ic k e r , R u f u s .............................................. 60
S
S c h la m p p , F r a n k C o....................
52
S e a b o a r d N a t i o n a l B a n k .......................... 53
S e c o n d N a t i o n a l B a n k .............................. 38
S e c u r i t y N a t i o n a l B a n k .............................. .32
S in c la ir , J o h n F . C o.................................... 55
S io u x F a l l s N a t i o n a l B a n k ..................... 61
S n a p p H o t e l ................................................... 21
S t a t e C e n tr a l S a v i n g s B a n k ................ 39
S to c k Y a r d s N a t ’l B a n k , O m a h a . . . . 48
S to c k Y a r d s N a t ’l B a n k , So. S t. P a u l 61
S u c c e s s f u l F a r m i n g ................................... 27
S u p e r io r F i x t u r e C o.................................... 81
S w if t & C o...................................................... 29

I

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g

i

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1

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u

U n ite d C a tt l e L o a n C o.............................. 104
U n ite d S t a t e s N a t i o n a l R a n k ................ 49
U n io n & P l a n t e r s B a n k & T r. C o . . . . 12
U n io n T r u s t C o............................................. 25
U p h a m B ro s . C o............................................. 84
V
V a lle y N a t i o n a l B a n k ................................ 42
W
W a h k o n s a H o t e l ....................................... 4'2
W a l t e r s , C h ä s. E . C o........... ...................... 80
W a t e r l o o B a n k & T r u s t C o.................... 38
W a t e r l o o S a v in g s B a n k ............................ 40
W e b s t e r C o u n ty N a t i o n a l ....................... 39
W e s t e r n L if e I n s u r a n c e Co.................... 84
W h i t e - P h i l l i p s C o m p a n y .......................... 100
W o o d s , G u y ................................................... 39
Z a is e r , W . H . S p e c ia lty Co....................... 68

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THE

October, 1919

NORTHWESTERN

103

B A N K ER

In m aintaining its in d iv id u a lity in tact over a period of n ea rly tlu r ty y ea rs,
w k e n tlie ten d en cy to consolidation lias te e n general,

THE NATIONAL BANK OF THE

R E P U B L I C
O F

C

H

I

C

A

G

O

t a s con stan tly t e l d itse lf in a fr ie n d ly and te lp fu l attitu d e to w a rd its
patrons, m an y o f w t o m teg a n w i t t t t e ta n k as y o u n g men a quarter o f a
cen tu ry or m ore ago. W e ta v e assisted tkem in developing and m aintain­
ing tk e ir o w n in d iv id u a lity . T t e spirit o f cooperation t e tw e e n t t e ta n k
and its custom ers t a s created a m u tu ally pleasant and profitakle r ela tio n g tip , as dem onstrated t y t t e su tstan tial success o f to tk .

O n tk is ta sis o f

accom pliskm ent, w e continue to in v ite t t e kusm ess o f resp on sitle people
req u irin g n e w or additional C tic a g o fa cilities.
JOHN A. LYNCH,
.
..
President
WM. B. LAVINIA
,
.
.
W M .T. FENTON,
. 1st Vice-Pres. and Manager
ROBERT M. McKINNEY,
.
2nd Vice Pres. WM. C. FREEMAN,
.
.
WATKIN W . KNEATH,
.
.
3rd Vice-Pres. CHAS. S. MACFERRAN, .
.
OSCAR H. SWAN,
.
.
.
Cashier WALTER L. JOHNSON, .
BOND DEPARTMENT in charge of Watkin W . Kneath, 3rd Vice-President
FOREIGN EXCHANGE DEPARTMENT in charge of A. O. Wilcox, Manager
DEPARTMENT OF ANALYSIS AND STATISTICS in charge of James S. Baley,

Asst. Cashier

‘. *. iSt 25K
Asst. Cashier
Asst. Cashier
Asst. Cashier

RESO URCES
F O R T Y -O N E
M I L L I O N

Manager

D O L L A R S

“DROVERS SERVICE”
MEANS

“SPECIALIZED SERVICE”

Drovers National Bank
(U nion Stock Yards)
C H IC A G O


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Federal Reserve Bank of St. Louis

104

THE

NORTHWESTERN

BANKER

October, 1919

A Clearing House for Cattle Paper
Mr. Banker:—Why not employ
some of your surplus funds in
the purchase of our high-class
feeder paper, executed by Iowa
farmers, secured by chattel
mortgage, and bearing our en­
dorsement?
It is the most liquid of assets
for your secondary reserve.
Write us.

Mr. Banker:—If your custom­
ers are seeking funds for the
purpose of purchasing feeder
cattle and sheep this Fall, why
not let us handle the paper?
We are always in the market
for desirable cattle loans but
prefer to take them on our own
forms.
Write us.

You Will Find Our Rates Right

United Cattle Loan 6 Live Stock Company
Executive Offices: 5 0 4 - 5 0 9 H ippee B u ildin g

DES MOINES
Owners of Mulehead Ranch, Gregory County, So. Dak.
The finest ranch in the Rosebud Country

Hereford Feeding Calves a Specialty
N . M . H U B B A R D , J r . , President
L E O E . S T E V E N S , Vice President
F R A N K D . J A C K S O N , Secretary
E R N E S T A . J A C K S O N , Vice President
C H A R L E S A . E A S T , Asst. Secretary


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Federal Reserve Bank of St. Louis