Full text of The Northwestern Banker : October 1920, Twenty-Fifth Year, Number 398

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NORTHWESTERN

BANKER

OCTOBER
1920

IN THIS ISSUE
Trying to Force State Banks Into the
Federal Reserve System
Extra Work-Extra Pay Advocated by
South Dakota Bankers
Tax Exemption is Insidious Foe of
The Financial World
Tw en ty-fifth
Year

Total N um ber
398

k DBS MOINES

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Federal Reserve Bank of St. Louis

2

THE

N ORTH W ESTERN

Northwestern National

BANKER

October, 1920

D irectors
F. A. CHAMBERLAIN, Chairman First National BankE. W. DECKER, Pres. Northwestern National Bank

L ife Insurance C o m p an y

C. T. JAFFRAY, Pres. First National Bank
T. B. JANNEY, Pres. Janney, Semple, Hill & Co.

MINNEAPOLIS, MINNESOTA

E. L. CARPENTER, Pres. Shevlin-Carpenter-Clarke Co.
B. F. NELSON, Pres. Hennepin Paper Co.

JOHN T. BAXTER, President

A. A. CRANE, Vice-Pres. First National Bank
J. A. LATTA, Vice-Pres. Northwestern National Bank

A

PURELY

MUTUAL,

FOU N DED

OLD-LINE,

WESTERN

JOHN T. BAXTER, Pres. Northwestern Nat’l Life Ins. Co.

COMPANY

1857

The

L on g T im e
F arm L oan s
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.

Resources $26,000,000.00

LEAVITT & JOHNSON
TRUST CO.

P i r s t National

iBank of O m a h a

WATERLOO, IOW A

OLDEST IN IOW A

has efficiently served Western
Banks for 63 years. Y our Bus­
iness is invited.

22 Millions of Live Loans

Federal Land Bank
O m aha, N ebraska
D.
E.
C.
M.

P.
D,
M.
L.

HOGAN........................................President
MORCOM.................................... Treasurer
G R U E N T H E R ................
Secretary
COREY........................Attorney-Registrar

C A P IT A L , $2,432,190.00
O ur o ffic ia l s ta te m e n t f o r J a n u a ry
31st s h o w s :
No.
No.
Assne. Members.

No.
Loans.

I o w a .............. 142
N e b r a s k a ..1 5 7
So. D a k o t a .123
W y o m in g . . 60

2,669 $18,952,850.00
2,729 11,772,490.00
1,720 ' 7,050,450.00
504
1,150,100.00

482

7,622 $38,925,890.00

A fa r m e r s ’ c o -o p e r a t iv e la n d b a n k
in w h ic h a ll n e t e a r n in g s b e lo n g to
borrow ers.
1919 n et e a r n in g s w e r e
15% o f b o r r o w e r s ’ s t o c k . L a w r e ­
q u ire s th a t 25% o f th e n e t e a r n in g s
be p la c e d to r e s e r v e a c c o u n t. T w o
6% d iv id e n d s a n d o n e 10% d iv id e n d
a lr e a d y paid .
B a n k e r s g e n e r a lly a c t a s s e c r e ­
t a r y -tr e a s u r e r s , a n d find th is a r ­
r a n g e m e n t a d v a n t a g e o u s b o t h to
th em a n d t h e ir c u s to m e r s .

Send Collections on

FIRST
' NATIONAL >
»
" V BANK w .

NORTHWEST IOWA

IN THE UNITED STATES

NORTHEAST NEBRASKA

N ew Business Invited

SOUTHEAST SO. DAKOTA

on the b asis of

SOUTHWEST MINNESOTA

S A T IS F A C T O R Y S E R V IC E

to the
Resources Over $5,000,000.00

FIRST NATIONAL BANK
DAVENPORT, IOWA
IRVIN J . GREEN, Cashier

A . F. DAWSON, P residen

t

FIRST NATIONAL BANK
OF SIOUX CITY, IOWA
Resources, Feb. 28th, 1920, $16,931,365.05

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Federal Reserve Bank of St. Louis

October, 1920

THE

N O RTH W ESTERN

BANKER

IEUR R A D IS S O N , determined to “ travell and see
countreys,” reached Chequamegon Bay in 1661, and
the astonished Indians got their first view of men of the
.
______ white race. Four years later, Father Allouez established
a mission near the present site of Ashland, and the Indians marveled
at his glittering altar ornaments and silken vestments.
With greater"3stohishment, however, these early French explorers
would view today, itf this were possible, the modern developments
now centered in this/same spot.

ASHLAND

BANK.S

are intimately identified with these great modern developments.
This Laktf Superior city is an important shipping, lumbering, mer­
cantile and railroad center.
Conspicuously^: is the outlet of the Gogebic iron range. Its ore
docks are miracleskof efficiency.
y n ,
Futhermore it forms\th^ terminal for four important railways, and is
the distributing point for coal and other supplies for a considerable
inland territory. Agricultural pursuits in the surrounding country
are rapidly gaining a farge-importance.
A close relationship exists^betw^n^^hlamfand MinneapoìisT\_/^~
The Ashland National Bank was organized in 1884, and the North
ern National Bank in 1886. In the years 1885 and 1901, respective^
ly, these banks opened accounts with The Northwestern, and these
accounts have been active ever since.
The passing years only serve to strengthen the bond between this
northern city, Minneapolis and The Northwestern National Bank

■ S&e NORTHWESTERN - NATIONAL- BANK
M J N N E A P O L I S - M I N N E SOTA
R E S O U R C E S


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Federal Reserve Bank of St. Louis

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3

THE

4

N O RTH W ESTERN

BANKER

October, 1920

It takes a lo t of bookkeeping to record the sales o f 136 GO-GAS
stations. This is the a ccou n tin g departm ent that does it.

Directing 136 Go-Gas Stations
H E great advantage of a chain of
merchandising stores like the GOGAS Stations is in centralized con­
trol and buying power. W here ordinary
concerns buy a few tires, accessories, and
supplies by dozens, by crates or cartons,
an organization like Consumers Service
Stations, can buy in car loads. „ The sav­
ing, both to the company and its cus­
tomers, is apparent.

T

So successful has been the applica­
tion of this business principle that the
GO-GAS chain today is nearly ten times
as large as it was a year ago. Its busi­
ness in gasoline, kerosene, motor oils and

accessories now runs well up into the
hundreds of thousands of dollars each
month.
GO-GAS Coupon books, good at Con­
sumers Service Stations and at all sta­
tions of. the Hawkeye Oil Company,
will purchase supplies at 163 stations in
Iowa, Illinois, Indiana, Minnesota, and
Kentucky.
In towns where they are established
the GO-GAS^stations have made a repu­
tation in the sale of high grade automo­
bile accessories at reasonable prices.
W hen you are touring watch for the
“ Checkerboard Stations.”

Consumers Service Stations
General Offices, Reserve Trust Building,
Rock Island, Illinois

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Federal Reserve Bank of St. Louis

THE

October, 1920

N ORTH W ESTERN

5

BANKER

“ AR C H ITE C T S OF IN D IV ID U A L IT Y ”
Specializing in the Design and Engineering o f School and Courthouses

B R O W N BR O TH ER S & CO.
Established 1818

Philadelphia

NEW YORK

Boston

Scandinavia
For over half a century we have maintained
close banking affiliations with all parts of Scandina­
via. We offer our facilities and familiarity with busi­
ness methods and conditions there to those en­
gaged in trade with Norway, Sweden and Denmark.

B R O W N , SHIPLEY & CO.
Established 1810

Founders Court, Lothbury
LONDON, E. C.

Office for Travelers
123 PALL MALL, LONDON, S. W.

R ea d ers w ill c e n t e r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to o u r advertisers.


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Federal Reserve Bank of St. Louis

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THE

N orthwestern Banker
The N ecessary Financial Journal

DES M O IN ES
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25 th Year

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OCTOBER, 1920

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Number 398

IN THIS ISSUE
Editorial Comment------------------------------------------------------- By Clifford DePuy
8
Frontispiece-----------P. B. Bartley, President Montana Bankers Association 10
Forcing State Banks Into Federal Reserve System________ By Hugh Rogers 11
Small Investor is Furnishing Capital_______ ________ ____ By Leslie Hanson 12
Public Accountant is Important-.____________________ By Clarence A. Diehl 13
Timeliness in Advertising-----------------------------.-----------By G. Prather Knapp 14
American Bankers Association____________________ By W. B. Weisenburger 15
Extra Pay for Extra W ork____________________________ ___By H. V. Harlan 16
Investments Suitable for Women______________________ By Clara F. Porter 17
Distribution of Short Haul Products________ _____ _______ By J. F. Bowman 18
When We Swallow Our Own Medicine__________ By George T. McCandless 19
Country Banker and the Farmer___________________________ By S. L. Moore 20
Trade Acceptance Needs Explanation_________________ By Robert H. Bean 21
The Public is Entitled to the Facts________ _____________By C. B. Merriam 22
Tax Exemption is Insidious_________ ___________________ By E. D. Chassell 23
The Ralston-Nolan Bill----- .---- ’_______ _________________ By H. G. Hathom 25
Remedy for High Interest Rates___________________________By John Moody 26
Blue Sky Legislation is Needed________ ______ _______By Legal Department 29
Personal Paragraphs___________ _______ _____ _______ ____________________
30
Iowa Bank News_;_______________________ !__________ ____________________
37
South Dakota Bank News_____________ ________ ___________________________ 59
Nebraska Bank News__________ ________ ______________________________ ___ 66
Minnesota Bank News._________ _____ _____ ‘________ _______________________ 72
Montana Bank News__________________ ______ _________ _____________ _____ 78
North Dakota Bank News_______ __________________________ _______________ 80
Bank Equipment Section________________________________ _____________ _
84
How Uncle Sam Guards Pest Remedies_______________By J. K. Haywood 93
Insurance Section_________ __________ _____ __________________________ ____ 100
Psychology o f Selling Life Insurance------------------- By Dr. John A. Stevenson 100
In the Directors’ Room _____;___________ ___________ ____________________
in
Iowa Farm Mortgage Section______________________ ________________ ______ 112
Farm Loans and Their Safeguard______._________ - __By Frank A. Hilliard 112
Investment Section________ ,_______ ______________ ___________ _____________118
What the Teller Told Me_______ _____________________________ _____________124
Index to Advertisers________ ______ _______ ___________ i._______ __________ 126
==

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Clifford De Puy
Publisher

Donald H. Clark
Editor

G. A. Snider
Manager

P U B L I S H E D A T 5 55 S E V E N T H S T R E E T , D E S M O IN E S , I O W A

M o n th ly , $3.00 p e r y e a r, 50c a c o p y . E n te r e d a s s e c o n d c la s s m atter at D es M oines post office to co n fo rm to the p ostal
la w s ; everyth in g else pertain ing to the jo u rn a l bein g strictly first class.
T he oldest fin ancial jou rn a l w est o f the
M ississippi R iv e r and the first in the U nited States to jo in the A udit B ureau o f C ircu lation s.

MEMBER
AUDIT BUREAU OF CIRCULATIONS
Special Representative
Charles Burke

Care Northwestern Banker
Phone Walnut 1844
=

MEMBER
FIN ANCIAL AD VERTISERS ASSOCIATION

Minneapolis Office
Frank S. Lewis

840 Lumber Exchange Bldg.
Phone Main 3865

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Chicago Office
Herbert

Armstrong

410 Advertising Bldg.
Phone Randolph 2100

MEM BER
FIN AN CIAL PU BLISH ERS ASSOCIATION
New York Office
Philip J. Syms

150 Nassau St.
Phone 4836 Beekman

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Federal Reserve Bank of St. Louis

11

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St. Louis Office
R. Fullerton Place
4 24 Merchants-Laclede Bldg.
Phone Main 1342
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October, 1920

THE

N ORTH W ESTERN

BANKER

THE
IOW A LOAN & TRUST COMPANY
BANK
OF DES MOINES
The Utmost in Bank and Trust Facili­
ties For Banks, Bankers, Mer­
chants and Individuals.

DEPARTMENTS
BANKING
Bank Acccmnts.
Commercial Accounts Savings Accounts
Certificates of Deposit. Time and Coupon
are interest bearing.
Money loaned on real estate first mortgage
and commercial paper.

MORTGAGE
Farm loans and city Joans bought and sold.

INVESTMENT

REAL

ESTATE

Des Moines and Polk County real estate
listed.
Lots sold on partial payment.

TRUST
Organized and established to act as execu­
tors, administrators, guard-iaiis, f i s c a l
agents, etc.
Consultation free.

FOREIGN
CAPITAL, SURPLUS AND PROFITS
$ 1, 000,000

Steamship Tickets. Passports secured.
European Food Drafts.
Issues drafts payable throughout t h e
world.

IOWA
MEMBER

FEDERAL
SYSTEM

RESERVE

FARM

CREDIT

CO.

Loans on live stock direct through bank *
correspondents. Sells cattle paper.

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Federal Reserve Bank of St. Louis

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Bonds, Investments, Securities bought and
sold. Liberty Bonds handled at accepted
daily quotations. Inquiries solicited.

N

orthwestern

B anker

D es M oines , Iow a
25th Year

OCTOBER, 1920

Number 398

JUST STRUGGLING ALONG
U The Federal Reserve Banks during the past
few months tightened up on the credit they al­
lowed to member hanks and increased the dis­
count rate higher than it had ever been before.
W hile many industries such as the live stock,
motor trucks and others have been very much
in need of additional credit, which in many
cases they have been unable to secure, the Fed­
eral Reserve Banks have been struggling along
trying to keep the wolf from the door and pay

their running expenses, while making only
$2,500,000 a week net, or an average of about
$11,000,000 a month. These figures are based
on the earnings for the first six months of this
year. The total earnings of the twelve banks for
the first six months of this year were over
$81,000,000, while the total expenses were over
$13,000,000, or at the rate of 151 per cent per
annum on the average paid-in capital of the
twelve hanks.

A NEW SERVICE FOR YOUR CUSTOMERS
C Everything that you do to help your custom­
ers indirectly helps your community and your
bank. Your customers must succeed if you suc­
ceed. Are you doing everything you can to help
your merchant, manufacturer, jobber and
farmer customers run their business efficiently
and economically and along modern business
lines? Many merchants lose money because
they do not have proper bookkeeping and cost
accounting systems employed in their organiza­
tions. Some o f them do not yet know how to
properly employ the power o f advertising, and
to follow the correct lines of merchandising so
that they can make the largest possible return
on their investment. The merchant to whom
you now refuse additional credit because you
have already loaned .him the full amount to
which you think he is entitled might be able to
increase his businëss and also his profits if he
knew better the exact cost of doing business and
inaugurated some new up-to-date plans at thé
suggestion of his local banker. Many big man-

ufacturers now assist their local dealers in ar­
ranging their store windows and their book­
keeping systems. The number of national man­
ufacturers who do this, however, is very small,
and it occurs to us that there is a wonderful op­
portunity for bankers, both in the large and
small communities to offer advertising and
merchandising counsel or service to their cus­
tomers which would be a real value to. them.
This need not entail very much additional ex­
pense, only some extra time on the part of one
of the officers of the bank in securing ideas and
plans that have made other stores a success.
The banker’s present knowledge of finance and
cost accounting methods would help him ma­
terially in showing the merchant how to better
run his business. Here is a new idea in service
to bank customers that we believe should prove
helpful and beneficial to him as well as being
a big talking point for the hank, and incident­
ally a stimulator of deposits.

LIVE STOCK A LIVE ISSUE
Cl The live stock situation is deserving of the
serious attention of hankers and cattle men.
Owing to the tightening up o f credit, cattle men
have been forced to liquidate and thus sell their
cattle in many cases before they have fully ma­
tured. A committee of bankers and western cat­
tle men recently went to Washington to present


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Federal Reserve Bank of St. Louis

their claims to the Federal Reserve Board, and
to show them that the cattle men must have
more credit if the live stock industry is to be
maintained. Stock raising is a vital necessity
in helping to solve the high cost of living and
the food shortage which has existed. Banks
located in the stock raising and cattle sections

o f the country through the tightening of the
money market have been unable in many cases
to secure the necessary funds to take care of
their borrowers, thus forcing the cattle men to
liquidate by shipping their stock to market in
many cases before the animals were fully devel­
oped, and regardless of whether or not the mar­
ket prices were at their best. The committee
which appeared before the Federal Reserve
Board stated that bankers and cattle loan com­
panies should not be forced to “ call” their loans.
Millions o f dollars in loans are maturing this
fall and the committee believed a reassurance
from the Federal Reserve Board that it ap­
proved of such credit extension by the banks
would materially lessen the difficulties with
which the live stock men have to deal. Gov­
ernor Harding told the committee, however,
that the Board was without power to tender di­
rect assistance since all the individual Federal
Reserve Banks control the loans they make. In
other words, when a great industry needs more
credit we find the Federal Reserve Board at

Washington powerless to suggest to the Reserve
Banks that they should extend more credit to
the live stock raisers. Many cattle and sheep
raisers have been forced to dispose of young
stock, which if they could have borrowed more
money the stock would have been kept on the
farms until they matured, thus bringing a very
much larger price when finally sold. One very
well known stock yards bank in a letter to its
correspondents said, “ The nation recovering
from a wild spree of over-inflation recognizes
that it cannot apply too sudden and drastic a
remedy to an essential industry without severe
damage to everybody. Cattle raising is an es­
sential industry and will receive ample support.
We have always been great boosters for live
stock and will continue to back our corres­
pondents with every dollar at our command
to enable them to keep breeding stock on ranch
and farm.” This is the right attitude and
should have the help and encouragement of
the Federal Reserve Board, but apparently it
has not.

FUNDAMENTALLY SOUND
C ln spite of the tight money market which has
existed for several months past, the country is
fundamentally sound. What we need now is the
proper extension of credit to legitimate busi­
ness so that it can proceed along normal lines.
The Federal Reserve Banks have it within their
power to extend this further credit if they will,
because they have locked up in their vaults a
sufficient amount o f gold to extend to member
banks additional credit. The United States has
a smaller national indebtedness in proportion
to its national wealth than any o f the great pow­
ers. The national debt o f France is 46 per cent
o f its national wealth. The national debt of
Great Britain is 44 per cent o f its great wealth.
The national debt of the United States is only
10 per cent of its national wealth. Our national
wealth is about 250 billion dollars, while our
national debt is 25 billion dollars. Practically
all the financial writers of the country believe
that conditions from now on will be much better
and especially so in the middle west where the
greatest crops in history are being harvested.
We are fundamentally sound and there is no
cause for alarm. What we need is the wise coun••A CASHIER’ S CHECK” For $3.00 is all that is required to se­
cure the monthly visits o f the Northwestern Banker for an entire
year. Each issue contains from 108 to »¿6 pages o f mighty inter­
esting matter pertaining to banks and banking interests in
the territory covered by the magazine.
“ OUR CORRESPONDENTS” E v e r y b a n k in the
Northwest is invited to a place on this list.
Send us
Items o f local interest, tell us about your bank and its
growth, prospects, etc., also any other financial news of
interest to bankers in your section. W e are always
glad to hear from our Mends.
“ SIGHT DRAFTS” W e always carry a large “ Re­
serve” o f good will and additional service, and will
promptly honor drafts made upon same by any bank.
This department is for your special benefit. I t may
be made o f very great benefit to your bank. D o not
fail to avail yourself o f its privileges.
“ A CLEARING HOUSE** Our columns are a clear­
ing house for all our readers. Express your views on


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Federal Reserve Bank of St. Louis

sel and sound judgment of business men and
bankers in the handling of their affairs so that
the tidal wave of prosperity which is now being
held back will be held back no longer. There
must come a decline in prices, and if that de­
cline comes gradually there is nothing to fear
from a financial standpoint. People everywhere,
however have put off building new homes, ex­
panding their businesses, and are cutting down
on their purchases of clothing and other articles
because they have felt that eventually the prices
would be much lower and they would then do
their buying. It is better to have a running
stream of water than a stagnant pool. It is bet­
ter to have business activity than to have busi­
ness inactivity. Business conditions have been
very perplexing for some time and there may be
more problems to solve in the near future, but
in any event we know that we are fundamentally
sound as a nation and the only thing we need
is wise leadership in all of our commercial and
political activities to come out on top with fly­
ing colors, and thus be assured of continued
prosperity in the future.
topic o f interest to the banking fraternity and submit same for publi­
cation. You do not have to agree with us, or with anyone else.
W e learn things by an interchange o f ideas, and people with whom
we disagree often prove valuahle teachers. W e shall be glad
to hear from you.
“ NO PROTEST” Has ever been offered to the state­
ment that the field covered by the Northwestern Banker
is the money-producing section of the American continent,
rich in hogs, cattle, corn, etc., and dotted with thou­
sands o f prosperous banks, ali doing a good business,
and the majority o f them are readers o f “ The North­
western.”
“ SURPLUS AND UNDIVIDED PROFITS*’ Increase
very rapidly with those banks, whose advertisements
appear regularly in the columns o f this magazine.
Full information as to rates and our special service
will be promptly furnished on application. Your
business solicited and appreciated. The “ Banker*
h a s b e e n t w e n t y - f o u r y e a r s in it s p r e s e n t field»

^

P. B. BARTLEY

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President Montana Bankers Association, Vice President and Cashier Conrad
Trust and Savings Bank, Helena, Montana.
P. B. Bartley has been a resident of Montana for twelve and a half years,
moving from Auxvasse, Missouri, where he owned the Auxvasse Bank, to be­
come assistant cashier of the American National Bank, of Helena. In 1910 he
assisted the late W. G. Conrad in the organization of the Conrad Trust & Savings
Bank and was made cashier when the bank opened. Later he was elected vice
president and is now vice president and cashier of the institution. Mr. Bartley
is also president of the Whitehall State Bank, Whitehall, Montana, and president
of the Pondera Valley State Bank, of Conrad.
The wonderful growth of the Conrad Trust & Savings Bank is largely due
to the ability and management of Mr. Bartley, who has been the directing head
since its organization. The bank is one of the six in Helena, which is the financial
center of the state, and is recognized as one of the largest and strongest financial
institutions in Montana.
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Si!

N orthwestern Banker
The Necessary Financial Journal
T W E N T Y -F IF T H Y E A R

OCTOBER, 1920

N U M BER 398

Trying to Force State Banks into
the Federal Reserve System
Experience of W ood s Cones is strong argument for opponents of
tactics adopted by certain Reserve Banks
By Hugh Rogers
O T H friends and opponents of the Federal Re­
serve Banks will admit that certain abuses have
developed in the growth and extension of the
Federal Reserve System. Certain officers have gone
beyond the strict meaning of the law and have taken
measures, to force banks into the system, that de­
serve wholesale condemnation.
The original purposes of the Federal Reserve law
were excellent and no individuals should be allowed
to bring the entire system into disrepute by unfair
and unauthorized measures. The, future of the Fed­
eral Reserve Banks depends upon the support and
good will of both the bankers and the business men of
the country. And the only way to correct the abuses
that have grown up is-to give them full publicity.
The follow ing affidavit by W oods Cones, president
of the Cones State Bank, of Pierce, Nebraska, is both
sensational and enlightening. It is worthy of careful
reading by all bankers.

B

“ In the Superior Court of Fulton County, Georgia.
A M E R IC A N B A N K & T R U S T CO., et al
vs.
F E D E R A L R E S E R V E B A N K , et al
T H E S T A T E O F N E B R A SK A ,
P IE R C E C O U N T Y ,
ss.
“ Personally appeared before the undersigned at­
testing officer W oods Cones, who makes this affidavit
to be used as evidence in the above stated case and
who being first duly sworn deposes and sa y s:
“ That I am and for many years have been the pres­
ident of the Cones State Bank of Pierce, Nebraska, and
as such officer of said bank, I was interviewed some­
time last September by a Mr. Jones, claiming to rep­
resent the Omaha branch of the Federal Reserve Bank
of Kansas City, Missouri. I was urged by him to join
the system. I refused and was then asked to sign a
card agreeing that my bank would remit all items at
par sent us by mail by the Federal Reserve Bank. I
refused to sign and was told that I would be compelled
to at an early date, as there was no limit to the power
of the Federal Reserve Bank.
“ Early in October of the same year, the local ex­
press agent presented quite a number of checks on
our bank from the Federal Reserve Bank and we gave
him a draft for the full amount, payable to the Federal
Reserve Bank. A short time after, another bunch of


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checks of the same kind came in the same way, but the
express agent was instructed to collect in cash. I of­
fered him silver dollars for the checks and he said
he did not have time to count it and accepted an
Omaha draft for the face of the checks.
“ Following this, W . S. Lower, claiming to represent
the Omaha branch, came with some checks and de­
manded legal tender in payment. W e offered him a
draft payable to the Federal Reserve Bank but re­
fused to pay him the currency without better identi­
fication than was produced by him. After consider­
able loud talk and threat to protest the checks he ac­
cepted a draft. Shortly after this Mr. Lower came
again, properly identified, and demanded cash on
checks he had and we refused payment on account of
improper and insufficient endorsement. He stormed
around for a day and finally accepted a draft payable
to the Federal Reserve Bank.
“ November 14, 1919, a high powered auto contain­
ing four people, drove into Pierce and stopped in
front of the bank, but the engine was kept running.
T w o men, W . S. Lower and M. L. Bishop, got out of
the car, armed with revolvers and entered the bank.
As agents of the Federal Reserve Bank, they de­
manded the currency on checks drawn against the
Cones State . Bank of Pierce, Nebraska, of the ag­
gregate face value of $31,900.00, some of which had
been held for over three weeks. W hile one of our
bank force was 'counting out the money (about $13,000.00 more than we are legally required to carry in
our vault) to Mr. Bishop, Mr. Lower told us that
Bishop was a United States marshal, hard boiled and
armed, that he had cleaned up the state of Kansas
and would get us anyway, so we had better sign up the
agreement and keep our money.
“ Bishop said that a banker in Kansas who had the
only bank in the town, held out against parring, and
that he told him they would start a National Bank and
drive him out of business, and that he personally was
instrumental in starting the National Bank and said
he would stick to it until he drove the Kansas bank
out entirely.
“ Mr. Jones and a Mr. Davis came along later and
claimed they were peacemakers direct from the Federal
Reserve Bank of Kansas City. Said that Lower and
Bishop w e re ----------fools and had done entirely wrong
at Pierce and advised us to forget what Lower and
(Continued on page 67.)

12

THE

N ORTH W ESTERN

BANKER

October, 1920

Small Investor Is Furnishing Capital
for Bond Houses
Ten million new investors can be secured if bankers will unite upon a
uniform security attractive to small purchaser
By Leslie Hanson
Investment Editor Northwestern Banker
HE small investor is coming to the fore more prom­ Mr. Kimball’s subsequent remarks that we are concerned.
inently than ever before. More attention is being In his public statement he said: '
directed in his general direction than has been his
“ It is within the. power of the Investment Bankers’ As­
lucky lot during all the years that he has been salting sociation to adopt a plan of popular investment, with a
away his dollars and contenting himself with the usual 3 liberal sales commission to bankers and banks, which
or 4 per cent interest offered by the savings banks. Now would'put in operation a selling force the like of which
instead of passing him by the investment bankers are has not been seen since the liberty loans and which would
waking to the fact that he is a potential buyer o f securi­ continue to function permanently, to the great advantage
ties to be cultivated, especially now that the income tax of themselves, their customers and the nation.
has scared out the big money, and in directing their ef­
“ It is definitely within the power of the 25,000 bank­
forts toward that end are meeting with some stiff com­ ing institutions and the thousands o f investment bankers
petition.
in this country to increase the number of regular savers
It took the war to bring the small man out of his hole, by 10,000,000 and quite possible to secure an addition of
and Uncle Sam was the direct instrumentality. More $2,500,000,000 a year (less than 5 per cent of the annual
than 22,000,000 people in the United States purchased wages-fund of $50,000,000,000) to productive investment.
liberty bonds during the late world war, and millions of
“ The $2,500,000,000 which Mr. Meyer proposed to
these were educated for the first time to buy securities. raise annually from 10,000,000 new investors can be
Banks never have paid very
raised continuously, year after
much interest, the rate before
year— but not by governmental
“A leading bond house in Chicago doing a
the war being no higher than 3
action. It can be raised if the
wide business in securities showed an average
per cent except in a few scat­
commercial, the savings and the
sale on a recent flotation of $1,500. The head of
tered districts. Now 4 per cent
investment bankers of . this
this firm succinctly remarks that before the
is common and in eastern cities
country will unite upon a uni­
war, the average more likely would have been
they pay as high as 5 per cent
form security, based on solid
$15,000, explaining that the income tax has
driven the large purchaser of securities— in
and even more for straight sav­
savings bank values and paying
blocks of $10,000 to $100,000—almost entirely
ings deposits.
an interest rate low enough to
out of the market. A more public example is to
Eugene Meyer, Jr., who was
allow a selling margin so broad
be found in the offering early in September of
director of the war finance cor­
as to provide an ample profit
$100,000,000 in French government bonds. As
poration, created new interest
is well known, the syndicate books on that issue
for the bankers themselves and
were open only one hour and the entire offering
in the small man, when he
the salesmen in their employ.”
was heavily oversubscribed, with purchasers
brought forth a plan for in­
This suggestion is unique in
in every state in the union except two. Thirtycreasing the number of postal
itself. It is not fully developed,
nine thousand people purchased French bonds
savings banks and raising the
however, and has value for the
and, what is more to the point, subscriptions
from $100 to $5,000 of the securities totaled
interest rate on postal deposits
idea alone. If a plan could be
$69,000,000— nearly 70 per cent of the total.”
from 2 to 4 per cent. His idea
devised for the standardization
was to .put money in circulation
of securities, possibly along the
by bringing it out o f the pri­
line o f capital trusts suggested
vate hoards of those who have no faith in commercial some time ago as a means for financing foreign govern­
banks, but would trust it to a government institution for ment and enterprises, it would go far toward accomplish­
sufficiently attractive return, and, additionally to turn ing the end desired by Mr. Kimball. It bears considera­
into the government treasury money to aid in the retire­ tion from both savings and investment bankers and by
ment of bonded debt and thus reducing taxation.
international capitalists upon whom will fall the burden
of financing European and South American requirements,
That this would also work to the direct detriment of
savings banks goes without saying, as few men would ac­ pressed upon the United States with the depletion of capi­
cept 3 per cent interest when they could get 4 and even tal in England, France and Germany.
where banks pay 4 per cent, they could not compete very
Aside from that viewpoint it has one other feature to
successfully against a depository backed by the financial commend it. It brings forcibly before us the field that is
stability and strength o f the United States government.
open, among small investors, which never was exploited
In recognition o f the possibilities contained in such a pro­ before the war, and which has been barely entered now.
posal, the head of the National Thrift Bond corporation It is the first concrete suggestion to capitalize the work
in New York— Ingalls Kimball— issued a public state­ of the government in selling liberty bonds and educating
ment, urging that savings, investment and commercial the masses to the purchase of securities.
bankers “ get together” and combat by constructive action
A leading bond house in Chicago, doing a wide busi­
the plan advanced by Mr. Meyer. Mr. Kimball further ness in securities, showed an average sale on a recent
states that such a step would not be practical. Whether flotation of $1,500. The head of this firm succinctly rethat is true or not we will not attempt to say. It is with
c o n tin u e d on page 118.)

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October, 1920

THE

N O RTH W ESTERN

BANKER

13

P u blic A c c o u n ta n t Is im portant
Factor In Extending Credit
Expert financial statements help both merchant and banker in creating
confidence, the outstanding feature of credit
By Clarence A. Diehl
Assistant Cashier Des Moines National Bank
T H IN K we may safely say that Bank Credit is the manufacturer has made his first real step towards
vital force, in fact the very life blood of business. success after the accountant has carefully pointed out
All other lines of credit are more or less dependent to him his shortcoming. One department of his busi­
upon it and without bank credit business would be ness may be profitable and another show a loss that
enormously restricted. Bank credit is the measure in cripples the entire business. If the merchant is un­
dollars of the confidence a bank has in a borrower’s aware of this fact he is facing failure, but with the in­
formation before him he can proceed with intelligence.
ability and willingness to pay his debts.
A well balanced statement, supported by details of
Confidence, then, is the outstanding feature of credit,
but confidence is based on a number of different things. income and expenditure, is a splendid foundation for
the credit file of the banker. It should be supple­
Confidence to be intelligent must be analytical.
mented with as much addi­
In analyzing a credit risk
tional
information as can be
the bank considers the subject
procured from other sources
from three principal stand­
which have a bearing on the
points ; to -w it: Character,
character and capacity of the
Capacity, and Capital.
No
risk.
one or two of these alone will
Some business men still
suffice; we must have them all
hold the opinion that a bank
in greater or less degree. A
is trying to pry into their busi­
man may have character and
ness unnecessarily in demand­
capital but prove to be a bad
ing their financial statements,
risk because of lack of capac­
but this is no longer true in
ity. He may have capacity
the
larger centers where bank­
and capital and hide his assets
ers quite uniformly require it.
from his creditors, if he is
W here a line of credit is
lacking in character.
granted, the bank in a sense
The character and capacity
becomes a partner in the busi­
of a risk are largely deter­
ness as it furnishes the busi­
mined by the judgment of the
ness with temporary operat­
giver of credit.
This judg­
ing
capital and is therefore en­
ment may be right or wrong.
titled to full information.
Capital, the third factor in
It is no reflection on the
credits, is more tangible and
character or honesty of the
little excuse exists for mis­
merchant to ask for his state­
take. The certified statements
ment. It simply supplies in­
prepared from inventories and
formation that is necessary to
carefully kept books period­
intelligently c o n d u c t the
ically audited leave l i t t l e
bank’s
business. It also ex­
ground for error.
pedites the handling of busi­
In gathering credit informa­
ness. The information con­
tion on a risk the first thing a
tained in the statement is al­
bank calls for is the financial
ways available to the officers
statement. If this is prepared
C LAR E N C E A. D IE H L
and directors of the bank,
by an accredited public ac­
either in reviewing the risk or
countant the banker knows
in considering an increased
that the figures are expertly
assembled and if the system of. bookkeeping is inade­ line of credit. The antiquated system of one officer
quate the statement will show this fact and the credit carrying the credit information around in his head has
risk will have the benefit of expert advice in revising proven a fallacy. The head may go golfing or to a
the system. This will be beneficial in the future con­ sanitarium and the borrower’s business to the dogs
duct of the business whether the desired credit is ob­ while someone not familiar with his line is searching
tained or not. I do not believe the importance of for the required information to act intelligently in
this point can be over emphasized. Experience shows granting further credit.
K nowing that his statement will receive careful
that not one small merchant in ten has an adequate
system of bookkeeping; in fact, it is a rare case where scrutiny makes the merchant a more careful buyer, a
he can accurately tell the amount of his profit or loss more careful grantor of credit to his customers and
for any given period. Many a merchant or small more conservative in incurring indebtedness. This will

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Federal Reserve Bank of St. Louis

14

THE

N O RTH W ESTERN

make of him a better credit risk. He will soon realize
that his most effective step in establishing' a firm credit
is in submitting a carefully prepared financial state­
ment of his condition, based on an audit of his books.
By virtue of the increased credit he will .be enabled
to do a bigger business at a greater profit.
A word about the statements. Public accountants
are performing a big part in a constructive w ork ; they

BANKER

October, 1920

are helping to establish credits, which means exten­
sion of^ needful business; they are safeguarding big
enterprises by pointing1out the pitfalls; they speed up
business by supplying- information available at a
moment’s notice; they are the merchant’s and banker’s
best friend. The statements, however, must be care­
fully prepared and should show all the facts, and the
certificates should be so definite that he who runs may
read intelligently.

Need T im e lin e ss In A d v e rtisin g
Trust company can attract attention by playing up local news
By G. Prather Knapp
Mississippi Valley Trust Company, St. Louis, Mo.
O N N E C T IN G a trust company advertisement
with local news, with current events, or with
the personal actions that go with certain seasons,
often adds greatly to its effectiveness.
In the first place, it helps to attract the reader’s at­
tention. The average man picks lip his newspaper with
his mind prepared for information along certain lines
already established. He glances automatically at the
weather report. He wants to know what is going on
in his own city. He wants to know what the govern­
ment is doing. Labor conditions interest him. The
cost of living holds an open compartment in his mind.
European politics are still part of his subconscious
thought. A t the present moment of writing- all of these
subjects are ‘‘timely.” A ny one of them will give him
a reason for stopping to read a news item, or a special
article, and the same attention can be claimed by an
advertisement which relates itself to the current in­
terests of the day.
Secondly, this same relation will help to make the
advertisement memorable. Just as the current topical
interest will persist in the reader’s mind, so will the
advertisement related to it.
Finally, the timeliness of an advertisement will help
it to bring about action, Giving all the good reasons
in the world for doing a thing sometime may not make
half so many people do it, as giving one good reason
for doing it now.
The absence of this now quality is the greatest fault
to be found with most will and deposit advertising.
In merchandise advertising it. is nearly always a
feature. W h y should it not be used to a greater extent
by trust company copy-writers?
Take the seasons of the year. Spring is the time
for change and renewal, for a fresh start in nature, in
humanity, in business. A long with spring cleaning,
spring outfitting, spring moving, spring inventory­
taking, let us have spring rejuvenation of banking ar­
rangements, investment portfolios, estate dispositions.
Summer is going-away time. “ A journey,” said one
trust company advertisement, “ may suggest the longer
journey that every man must be prepared for. Is your
house in order?”
Autumn is harvest time, thanksgiving time, the
time when nature prepares in a thousand ways for a
time of stillness and cessation. Is the reader of your
advertisement storing up the harvested fruitage of his
life, protecting it, providing for its steady usefulness to
those he loves?
W inter is the time of cozy firesides and bright

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domestic scenes, scenes that make a man think of his
loved ones and bring home to him the necessity of
insuring their future.
Iji every year there are special dates ¡which figure
in the news and can be related to advertising.
Local happenings are given front page space in news­
papers and should be watched as possible links to the
trust company message. W hen they suggest the un­
certainty of human life, the fallibility of individual
judgments, fhe annoying features of civil litigaton, especally probate squabbles, or the safeguards thrown
around trust companies as depositors or fiduciaries,
they will make telling trust company “ copy.”
Often a new book, a current magazine article, or
some words of a public speaker can be used to get
the news element into a trust advertisement.
A newspaper can, to a great extent, create news by
selecting certain happenings for prominent mention.
So can a trust company. The events chosen for men­
tion may be clipped from papers in other cities, or
taken from the daily life of one’s own city, or the daily
business of one’s own company.
Tim bequests in a prominent man’s will are of real
news interest, if published soon after his death. The
sale of a well-known corner belonging to a trust estate,
the commencement of an endowed college, the annual
report of a public charity, the re-financing of a great
corporation— these are,simply suggested as examples.
A southern trust company published an announce­
ment of welcome and appreciation every time a con­
vention met in its city. A middle-west institution took
advantage of a building boom to publish a double
page of photographs o f the structures it had financed.
A St. Louis institution published a series of quarter
pages on the eras of development of the Mississippi
Valley, at a time when river traffic and sectional de­
velopment was commanding front page space in the
St. Louis papers.
A New York trust company took advantage of the
war and the exodus of our men to Europe by describ­
ing its trust services to an officer of the A. E. F.
•
The greatest obstacle that a trust company adver­
tisement must surmount is the fact that an individual
needs trust company service all the time, and not at
any particular time. It has been said that “ what is
everybody’s^ business is nobody’b business,” and it .
might be said with equal truth that what can be done
at any time will not be done at all.
Here is the reason, then, for the “ now ” element in
good trust advertising.

October, 1920

THE

N O RTH W ESTERN

BANKER

15

Banker-F armer Co-operation Is Bi
Subject at A . B. A . Convention
Par clearance ruling will also have much discussion at the annual
convention at Washington this month
By W . B. Weisenburger
ROM the highly technical financial question of par ers how to farm. Some even proceed on this assumption
clearance to the problem of general welfare agri­ and thus invite unfavorable and obstructive criticism,
cultural encouragement runs the gamut of highly not only of their own efforts, but also of the efforts of
important topics to which the American bankers will give other bankers who understand the true m®tive and pro­
their attention during the forty-sixth annual convention ceed under it.
“ Efficient men and women
in Washington, D. C., October
can be retained on the farm
18th to 22d.
only by the proper development
Always interested in agricul­
of the business and social life
ture as the primary source of
of the country districts. This
the country’s wealth the Ameri­
development is absolutely nec­
can Bankers’ Association is giv­
essary if the trend of population
ing more attention to this sub­
from country to city is to be
ject this year than ever before,
stopped.”
one of the features being an
The plans of the commission,
agricultural ■conference to be
at the Washington convention
held Monday night, October
call for a consideration of rural
18th, at the New Willard H o­
educational methods, greater
tel. This conference will be
interest in farm boys and girls ;
preceded, on the morning of the
farm tenancy conditions, mar­
same day, by a thorough in­
keting conditions, good roads
spection of the various bureaus
and a better rural life in gen­
of the department of agricul­
eral.
ture as the guests of Sec. E. T.
Other Important Sessions.
Meredith. Secretary Meredith
is also one of the principal
Besides the main convention
speakers for the main conven­
sessions to be held every morn­
tion sessions, speaking on “ A g­
ing and the section meetings in
riculture and the Banker” at
the afternoon, there are numer­
the opening meeting Tuesday
ous other conferences of an im­
morning.
portant nature. On the three
business days prior to the
“ W e have prepared to call
American Bankers’ 1Association
agriculture to the attention of
Convention a conference of
the bankers in the most force­
federal bank officials will be
ful way possible,” says Joseph
Hir&ch, of Corpus Christi,
held. The governors of federal
reserve banks are : Boston, C.
chairman of the agricultural
A. Morse; New York, J. H.
commission of the American
Chase, acting ; Philadelphia,
Bankers’ Association. “ With
George W . Morris ; Richmond,
the convention being held at
Washington, we intend to make
George J. Seay; Atlanta, M. B.
Wellborn; Chicago, J. B. Mcthe most of our opportunity o f
Dougall ; St. Louis, David C.
driving home in a better way
than ever before the govern­
Biggs; Minneapolis, R. A.
Young; Kansas City, J. Z.
ment’s program of agricultural
development. The leading offi­
Miller, Jr. ; Dallas, R. J. Van
cers of the American Bankers’
Zandt, and San Francisco, J.
U. Calkins.
Association have agreed to at­
tend both the visit to the depart­
The federal reserve agents
ÜÜ
and ex-officio members of the
ment and the big conference on
W A SH IN G T O N M ON UM ENT,
Monday night, so through their
reserve board and the six mem­
555 feet, 5 1-8 inches in height. Highest work of
interest we expect to increase masonry
bers
of the board will constitute
in the world.
the association’s work in agri­
this important gathering from
cultural matters.
which important announcements are likely to emanate.
“ Keeping people on the farm and improving farm metffi Coming just before the A. B. A. convention, it is more
ods is one of the country’s most pressing questions. Too than likely many of the members of the advisory council
(Continued on page 63.)
many bankers regard the work as an effort to teach farm­

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16

THE

N O RTH W ESTERN

BANKER

October, 1920

Extra W o rk —Extra Pay Advocated
by South Dakota Bankers
South Dakota State Association heads movement to assure
“ at least w orkm en’ s wages’ ! for bank service
By H. V. Harlan
Vice President M in n eh ah a N ational Bank, Sioux Falls
C hairm an C om m ittee on U niform Charges, S. D . B. A .

H E movement for a standardized set of charges
majority of the people proper are willing to pay a
for the many extra duties incumbent upon the proper fee for services rendered and that the adoption
country banker owes its inception to a resolu­ of an approved scale of charges will enable the banker
tion adopted by the South Dakota Bankers Associa­ to place hi's special services before his clients with­
tion in 1916 when a resolution was passed approving out friction or embarrassment and would make the
a fixed charge for collections and commercial ratings. process of education much easier for both banker and
This resolution was prepared by the secretary's office customer. The secretary’s office has supplied the mem­
in leaflet form for mailing and a copy provided the bers with a printed schedule in suitable form that this
members. These leaflets were; found by many banks end may be achieved.
to be a great aid in procuring
The vastly increased duties
a proper fe.e for these services
recent years have brought to
and out of this experience
the banker have consumed
A PPR O VED STAN D AR D CH ARG ES.
came the belief that the plan
most of his time and often
(A d o p t e d a t a n n u a l m e e tin g S ou th D a k o t a
B a n k e r s A s s o c ia t io n , J u n e 25, 1920.)
might be extended to the
necessitated the .employment
C re d it R e p o r t s — 25 c e n t s ; s p e c ia l r e p o r t s a c ­
host of extra services •per­
of extra employees, material,
c o r d in g to se r v ic e .
formed by the country banker
L a n a R e p o r t s — A c c o r d in g to s e r v ice .
and equipment, a n d ‘ together
C o lle c t io n s — N otes, o n e - h a lf o f 1 p e r cen t,
usually free or for an inade­
with the vastly increased cost
m in im u m ; m in im u m c h a r g e , 50 c e n ts.
S ig h t
D r a fts , (1 ) 10 c e n ts p e r h u n d r e d ; (2 ) m in im u m
quate fee.
of operation and necessary
c h a r g e , 25 c e n t s ; (3 ) p r e s e n ta tio n fe e , 25 c e n t s ;
The South Dakota Bankers
(4 ) e x tr a f o r s e c o n d c a ll, 25 c e n ts. W e r e c o m ­
salary increases rendering it
m en d th a t d r a ft s d r a w n w it h e x c h a n g e h a v e th e
Association appointed a com ­
imperative as well as advis­
r e q u ir e d a m ou n t, a c c o r d in g to th is sch e d u le ,
ad d e d to th e fa c e o f th e d r a ft . W e a ls o r e c o m ­
mittee to work out the prob­
able
to place the performing
m en d th a t c o lle c t in g b a n k s m a k e im m e d ia te r e ­
lem and to make recommen­
of special services upon a
tu r n s o n r e c e ip t o f p a y m e n t.
F o r e ig n E x c h a n g e — O n e -h a lf o f 1 p e r c e n t ; 25
dations for action at the 1920
basis that will return some
c e n ts, m in im u m .
D o m e s tic E x c h a n g e —-10 c e n ts p e r h u n d red .
meeting. The committee pre­
portion of the operating cost.
T r a v e le r s ’ C h e c k s — 50 c e n t s p e r hu ndxed.
pared a questionnaire listing
It is hoped that the move­
T r a n s fe r b y T e le g r a m — -W e ste rn U n ion ra tes.
P a y m e n t o f T a x e s — 25 cen t’s p er r e c e ip t , m in i­
some twenty-five of the extra
ment will be a means to that
m u m ; 10 c e n ts e x tr a e a c h a d d itio n a l d e s c rip tio n .
services a banker is ordi­
A u t o L ic e n s e A p p lic a t io n — 25 cen ts.
end.
H u n t in g L ic e n s e A p p lic a t io n — 25 c en ts.
narily called upon to perform
Follow ing are some of the
In c o m e R e p o r t s — $1, m in im u m ; $1 p e r h ou r.
N o t a r y F e e s — 25 c en ts.
and mailed a copy to each
interesting comments made
F a r m S ales— $20, m in im u m ; 2 p e r c e n t on t o ­
member asking for a report
ta l sale.
by member banks:
L iv e S to c k S a les— 1 p e r cen t.
upon the various items as to a
“ W e are much in favor of
F a r m L e a se s— $1.
H o u s e L e a s e s — 50 c en ts.
proper charge for each and
a uniform charge for every
M o r t g a g e s — P la in , $1; c o u p o n n o te , $2; c h a t ­
for additional suggestions.
tel, 50 cen ts.
service. If your work is well
D e e d s— $1.
About 300 carefully worked
done, your customer will
C o n t r a c ts fo r D eed , B o n d s for- D eed , B ills o f
S ale— $2, m in im u m .
out replies were received
think
more of you than if it
C o n t r a c ts fo r E x c h a n g e — $2, m in im u m .
from the 600 member banks,
L ib e r ty , B o n d s — W e a d v is e th e .use o f g o v e r n ­
costs him nothing.”
m en t fr e e s e r v ic e f o r c o n v e r s io n o f te m p o r a r y
the large proportion indi­
“ Good idea! Let’s get to­
to p e rm a n e n t b o n d s ; o t h e r e x c h a n g e , 25 c en ts.
L ib e r t y B o n d S ales— 10 c e n ts p er h u n d r e d ; 25
cating the direct interest in
gether and get at least work­
c e n ts, m in im u m .
this subject and many val­
C lo s in g R e a l E s ta te D e a l— $2, m in im u m ,
men’s wages for our service.”
S o u th D a k o t a R u r a l C re d it L o a n s — O n e -h a lf
uable additional suggestions
“ W e heartily approve of
o f 1 p e r c en t, m in im u m .
were received.
R e a l E s t a t e L o a n s — A s c o n d itio n s w a r r a n t.
this step.”
E x e m p t in g Land, fr o m H a il In s u r a n c e L a w —
Upwards of 8,000 separate
“ W e make no charges for
25 c e n ts.
(C o p y m ad e f o r o w n e r a n d fo r b a n k
flie s.)
♦
items included therein were
some items but we ought to.”
S a fe t y D e p o s it B o x e s — $1, m in im u m .
itemized by the different sub­
“ A moderate charge would
jects and each subject was
be my idea. Something for
given careful study by the
everything.”
committee in working out their recommendations. A
“ This is an excellent movement. It is long past
number of district and county groups of bankers at due.”
their meetings gave the subject consideration and
“ W ould be glad to have a definite schedule to go
their recommendations were likewise considered.
byf
‘
Based upon the information thus received, the com ­
“ The charge to be made for cashing postoffice money
mittee report was worked out and returned to the orders when there is insufficient funds in the poststate convention at W atertown in June and was unan­ office.
imously adopted with but brief discussion further “ “ A charge to be made for funerals.
indicating that the movement had the hearty approval
“ Patching up domestic troubles, $10.00.
o f the members. The committee believes that the
“ Advice on saving money, no charge.”

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October, 1920

THE

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BANKER

17

Investment Suitable for W om en Is
an Obsolete Term
Y et the woman W festor is fast becom ing a very important factor
in the development of the community
By Clara F. Porter
Assistant Secretary Guaranty Trust Co. of New York
V E R since I have been in the bond business I woman client with an income between $30,000 and
have heard a good deal of talk about “ invest­ $40,000 a year who keeps in close touch with market
ments suitable for a woman”— bonds which even quotations and for whom the New Y ork Central De­
a woman might buy— from people in the 'bond busi­ bentures are a very satisfactory investment. The re­
quirements, not the sex, of the individual must be con­
ness as well as investors themselves. From time to
time I have even had requests for articles on “ In­ sidered in every instance. In many cases the require­
vestments for W om en.” So frequently are such ex­ ments of the investor must be more than considered;
they must be carefully studied.
pressions heard, in fact, that it appears to me worth
Another very widespread misconception is that sex
while to stamp them as erroneous.
There are tw o very different psychological processes plays an important part in the selling of bonds. I am
frequently asked whether I,
that are, perhaps, responsible
being a woman, sell bonds
for this anachronism. One is
exclusively
to women. There
the mid-Victorian idea that
is some surprise when it is
women should be protected in
known that the majority of
all things at all tim es; the
my clients are men. It is not
other is the very modern idea
because I prefer them to w o­
that bonds are sold like com ­
men as customers, but be­
modities— shoes and gloves,
cause, like all salesmen, I
for instance. In my opinion
have followed the line of least
there are a good many rea­
resistance and have obtained
sons why bonds cannot be
business where it was most
sold as shoes and gloves, but
easily obtained.« Men are
that is aside from this discus­
more accessible than women.
sion.
The sex of the person who
A child will understand
sells bonds is of no more im­
why there are women’s shoes
portance than the sex of the
and wom en’s g lo v e s; that
person
who buys bonds. Men
shoes and gloves for men are
do not buy bonds from a
different in size, shape, and
man because he is a man and
general style from wom en’s
I do not believe that' women
shoes and gloves. A child
buy bonds from a woman be­
will also understand that
cause she is a woman. Both
bonds are fundamentally dif­
buy from the person who
ferent from shoes and gloves.
convinces them that his or
An Anglo-French 5% bond,
her clients’ interests come
a General Electric 6% bond,
first, and who shows the
or a Consolidated Gas 7%
most intelligence in the selec­
bond will fit a woman quite
tion of bonds for investment.
as well as a man. But all
In other words, the sales
three will not fit all women
man or woman who gives
nor all men. In other words,
the most efficient service gets
all bonds that are a good in­
the most business. This is
vestment for some man are
one of the reasons selling is
equally good for some w o­
such a thoroughly satisfac­
man. It is just as dogmatic
tory way to spend one’s time.
to proclaim Chicago North­
western General M ortgage 5s a woman’s investment It has very truly been said that every salesman is in
as it is to sell New Y ork Central Debenture 6s to business for himself, and it is a stimulating thought.
Until recent years banks have not considered that
every stray man who happens to have $1,000 to invest.
For example: I have a man client who is more or women’s business was particularly profitable. Na­
less of an invalid and lives at Saranac the greater part turally, therefore, they have not sought it. The same
of the year. He is completely out of touch with mar­ habit of thought which makes men still talk of “ in­
ket conditions and commercial life generally. For him vestments for women” makes them still cling to the
the Chicago Northwestern 5% bonds are an exceed­ ancient belief that women must be regarded economicingly good investment. On the other hand, I have a allv as liabilities, not as assets. But a very great

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18

THE

N O RTH W ESTERN

change has already taken place and is taking place
daily.
The next decade or two will see many surprising
things, as far as the scope of women’s activities is
concerned. Today their club life is recognized as im­
portant. Tom orrow their political life will be recog­
nized as very important. Their regular jobs, their war
activities, their campaigns for large sums of money
for educational and philanthropic purposes have made
them a factor to be reckoned with. It is natural that
women of large means should begin to regard their
fortunes as great opportunities for their own intellec­
tual development. It is also natural that women are
no longer satisfied to have their own investment funds
handled by some man in their family. As time goes
on, I find that fewer men buy bonds from me for their
wives or their sisters, and more women come to me
to discuss their own investments. Right here let me
say that I have one man client who has never yet
bought any security from me without first discussing
it with his wife. I believe that this will happen more
frequently in the future and I do not believe men will
be ashamed of it, either.
In the past, bond men appear to have had some
prejudice against women investors. I have often
been asked whether I did not find women unreason­
able; if they were not nervous over market fluctua­
tions, holding me personally responsible if their pur­
chases depreciate in market value during times of de­
pression. I have not found them so. Generally speak­
ing, the woman investor is as intelligent and reason­
able as the man and quite as able to grasp the salient
features of the security discussed. As a matter of fact,
the only difference I can see between the sexes as in­
vestors is that most women are not so “ market wise”
as men. This is probably for the reason that they are

BANKER

October, 1920

younger in the business. W hen an offering of a se­
curity is made to a man he is likely to bring up an­
other in which he is interested and which is •selling at
about the same price. It is then necessary for the
salesman to compare the two issues, showing the ad­
vantages of the security offered.
The real fascination of the distributing end of the
bond business is fitting the security to tine client. The
salesman’s skill is best shown by his or her tact and
resourcefulness in discovering the client’s require­
ments, his or her judgment in determining what is
suitable, and his or her persuasiveness in succeeding
in making what is suitable desirable. For example:
A New Y ork City bond, which at the time of writing
is selling on about a 4.65% basis, is a more suitable
investment for a man or a woman having a taxable in­
come of more than $50,000 a year than any taxable
bond which yields 6.50%. But it is sometimes as diffi­
cult to persuade the investor to buy the municipal
bond as it is to convince a girl of eighteen that an
intimate acquaintance with one W illiam Shake­
speare will be of greater value than many hours spent
with Robert W . Chambers.
In conclusion, I should like to emphasize two points :
First, women are business assets.. Insurance com ­
panies have found women good business prospects
and banks are more and more coming to appreciate
the value of the business brought to them by their
women clients. They are coming to appreciate it to
such an extent that they are beginning to seek w o­
men’s business, to devise ways and means of de\r tim­
ing this business. Second, women do not need o
for preferential treatment. An “ investment suitable
for women” is an obsolete term, but the womalr ir£vestor is fast becoming a very important factor in the
development of the community.

Distribution of Short Haul Products
Railroads do not want short haul loads as they cannot handle them efficiently
and the m otor truck is the solution of the problem
By J. F. Bowman
General Sales Manager Garford Motor Truck Company
H E T H E R it be in street car, subway, parlor
car, elevator., office or home, there is that per­
petual and approaching weird appeal: “ Give
us more transportation.” W e nCed transportation.
H ow well we know and realize it.
Like sheep we are prone to follow the dictates of
those in our midst, around us, and of whom we read.
T oo often we lack originality arid initiative. In proof
of this statement some months ago “ mass production”
was on the minds, lips and ears of everyone. W e
could see nothing but men, material, machinery, re­
sults. Some far-seeing individual rocketed transporta­
tion and everyone thought in terms of “ length of
time on the road,” and now— rhen are idle, material
is not forthcoming, the hum of machinery is diminish­
ing and, as for results, well, we all know about that!
“ Distribution” is wending its way into everyday
conversation; in it we have the real meat of the
matter.
Transportation'— Distribution— there is the whole
thought.
In these days when we hear and see so much we

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live in an era of “ free education.” W e realize as we
never did before how cause precedes effect— there are
reasons for every result;
W e have reached the school grade that teaches:
“ M otor trucks for short hauls!” W e start out; and
herald the glad tidings: “ Ship by T ru ck ;” D o we
stop to think what effect this cause will have? Do we
realize that if everyone were to decide at one time to
“ Ship by Truck” how the traffic congestion of our
larger cities would look? And our highway?'1 They
would become veritable trains, and fleets T3 > .tucks
bound for city markets of all kinds.
Now, we see where distribution takes us a step fur­
ther into this subject: “ how ” and “ where” are we
going to distribute short haul products? These are
the obstacles of the short haul.
As the railroads have freight yards, so shall the
motor trucks have terminals— they must have termi­
nals. Railroads do not want short haul loads; they
cannot handle them efficiently.
A striking example comes to my notice as I write
(Continued on page 84.)

THE

October, 1920

N ORTH W ESTERN

BANKER

19

W h e n W e S w a llo w Our Medicine
and Pretend That W e Like It
Par clearance permits local business men to have accounts out
of town— and the banker must pay the bill
By Geo. T. McCandless
“ The Man Behind the Counter”
T H AS been the source of considerable curiosity to
me lately to find out what has become of our old
law of Supply and Demand. W hen I studied
Political Econom y several years ago that was one of
our favorite chapters and the whole book was built on
that supposition; that prices depended oh that one
law.
Competition vs. monopoly was another favorite and
we were taught to believe that prices were always
lower under competitive conditions. That theory has
gone somewhere if what we read is true. W e dis­
cover that oil, for instance, was cheaper before the
big company was disintegrated
than it is now and if any of the
banking fraternity who read this
magazine' are worshippers at
the shrine of Lady Nicotine
thev will bear me out as to what
1
'appened to tobacco prices
the tobacco trust went into
retirement.
Gi interest to bankers is the
question as to just how much
the people have been helped by
the government getting into the
banking business. The gener­
al impression when the Federal
Reserve Bank was established
was that it was to be a sort of
insurance against panics; some­
thing to fall back on in case of
emergency. It has turned out
to be a pretty lively collection
a gen cy; not a collector of bad
debts but a great par clearing
agency for wholesale houses
and large city banks. The aver­
age country banker looks back
on the days of 2% on daily
balance and immediate credit as
being considerably better for
him than the present deferred
credit system and no interest.
I am not one to raise a howl against the Federal Re­
serve
-'em — it has been worth all it cost and may
cost l years to come but I do have doubts about
some of its rulings being practical or beneficial as in­
tended.
A n abuse that has sprung up in carrying out what
were deemed to be functions of the system is the
compelling of non-members to remit all items at par
in specified exchange to the Reserve bank. The
methods used to enforce this ruling have been drastic
and onerous. If we can believe the press there have
been deliberate attempts to put some country banks
clear out of existence by withholding items for several

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days and then presenting all at once and demanding
cash.
I doubt very much if the bankers on the Federal
Reserve official list approve of such methods down
in their hearts; they know their own banks could not
stand much of such action. I do not wish to appear
to defend the hold-up country banker who charges 25
cents per hundred to remit exchange on home checks
or his own cashier’s checks which he has remitted in
payment of collections and for which he may have
deducted exchange once before but^ I do know from
experience that the honest banker outnumbers the
robbers by a hundred to one so
why make the one hundred suf­
fer fo r the misdeeds of the o n e ;
surely there could be a better
way devised for the erring
brother to be brought to time
than by punishing the whole
bunch.
An abuse bankers have al­
lowed to creep in is the accept­
ance of bill of lading drafts as
cash. Is it right for us country
bankers to take in over' the
counter thousands of dollars in
such items and expect our city
correspondents to maintaifi an
expensive crew of collectors to
hang around grain offices for
hours at a time waiting for the
grain man to write him out a
check when he gets a good and
ready?
Bankers are to blame for this
and should suffer if guilty but
the good should not be punished
for the sins of the few. The
bank with which I am connected
receives daily a great many of
these grain drafts and one of our
best men has to spend at least
an hour of his time calling on
the various grain men, awaiting their pleasure to write
out their checks A T P A R for these collections, and
then at night we credit our depositors or remit A T
P A R for such items.
Personally I would like to see every street item
whether sent to or received from a correspondent
charged for at-the rate of not less than ten cents per
hundred. This is an amount of reasonable dues for
services rendered and the grain men would not ob­
ject if they were all treated alike.
Imagine a grain man doing business for a banker
at a loss or an even break. Let some banker do a
little trading with the board of trade and he will

20

THE

N O RTH W ESTERN

find out his money is no better than any one else’s in
the eyes of the commission firm.
And is it right for us to favor one line of business
as we do the grain men by extending these par
facilities and being obliged to make up the loss on
this class of business from other lines of business
men?
W e have one grain firm in^our town that carries
several bank accounts and pays its- workmen with
checks on towns where they have mills, although
the workmen live here. Is it right that the grain
firm mentioned should pay its local workmen with
out .of town checks knowing the cashing bank will
have to handle the item at a loss if they pay par for
it? And none of us wants to soak the workmen for
exchange. I called up this firm, (not a customer of

BANKER

October, 1920

ours by the way) and asked them why they could
not pay in local exchange and one of the bright young
fellows in the office replied,, “ W e do this so we can
get the benefit of the float.”
Verily, verily we must take off our hats to the su­
perior ability of the grain man who can make us swal­
low our medicine and pretend we like it.
W ith expenses doubling and trebling in the banks
their very salvation depends on some means o f re­
ceiving additional revenue from some source. In­
creased interest rates will not take up the slack.
Imagine because your expense has doubled what
would happen to you if you tried to charge twice your
customary interest rate. Y ou probably would not live
to tell the tale. So it follows naturally that exchange
, (Continued on page 110.)

The Country Banker M u st Share
Responsibility with Farmer
The two should work together in all matters for the
g ood of the community
By S. L. Moore
President First National Bank, Boone, Iowa
H E unsettled economic conditions and high
prices are said to be largely the effect of under­
production, and to relieve the situation our
best authorities agree that production of all kinds
must be increased. T o carry out this purpose it is
manifest that the banker living
in the country town, and the ac­
............ -j
tual producer— the farmer— have
an equal responsibility.
There
may* have been a time when the
fact was not fully recognized, but
today it would seem that this
mutual responsibility is being
met as never before.
The effort of the banker to pro­
vide the farmer’s needs, not only
in the way of loaning him suf­
ficient capital to handle his farm
properly, but the effort to aid
him in the bookkeeping opera­
tions incident to any well con­
ducted business, to aid him in
making returns for' income tax
purposes, to have available room
in the bank where the telephone
company, the threshing company,
the farm bureau officers or com ­
mittees, or neighbors can readily
get together and talk over their
business matters, the rest room
where the wives and children
may have a meeting place, all
serve to show the trend of the
g. l .
co-operative spirit along this line
On the other hand, the farm­
er’s willingness to enter into the enterprises in the
town, to give substantial aid toward community
homes for the American Legion in many of our coun-

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Federal Reserve Bank of St. Louis

ties, to extend the town folks a cordial invitation to
the farm picnics and gatherings, all these things show
his full appreciation and desire to co-operate.
These signs of the times are evidence of a growing
sentiment from which will develop not only more
pleasant home and neighborhood
relations, but in a larger way, a
fuller opportunity to go on in the
working out of his business, and
taking advantage of such en­
larging oportunities. The war
activities did much to foster and
encourage this spirit of mutual
helpfulness.
In the face of a
common enemy and the prob­
lems of war we saw the utter
necessity of getting together and
now as the difficulties arising
after the war confront us,, why
cannot we meet them with the
same spirit ? The banker can play
a selfish part with his neighbors,
and thereby contribute nothing
to the solution of these things, or
he can adopt the unselfish atti­
tude and thereby contribute in a
large measure to those things
which make every community
more wholesome and agreeable
to live in.
After all, is it anything more
than his plain duty to his people,
MOORE
to encourage and aid in this co­
operative spirit?
Could a more enduring monu­
ment be erected than to have it said of him, that he
aided in getting for the community thqse things which
make it a real home?

October, 1920

THE

N ORTH W ESTERN

BANKER

21

A cce p ta n ce N eed s E xp lan ation
Rather Than Defense
T o what extent it develops in American business life depends largely upon
the co-operative spirit shown by giver and taker of credit
By Robert H. Bean
Secretary American Acceptance Council
It is not claimed that the trade acceptance system
R A D E acceptances are now used throughout the
United States in practically every line of busi­ serves all purposes, is adaptable to all conditions of
ness, are included in the terms of sale of thou­ business or that cash sales or cash discounts should be
sands of business concerns, are discounted freely by abolished. W hat is claimed is that where business is
progressive ba,nks of the country and purchased by not done on a strictly cash basis, the trade accep­
Federal Reserve banks. The trade acceptance is here, tance will be found a safer, sounder and in the long
and here to stay. Criticism by those who for some run more economical method than the open account.
The American business man, whether he be pro­
reason do not want to encourage its extension, or by
those who do not yet understand its value and its place ducer, manufacturer, wholesaler or jobber, should
as part of the business and financial life of this coun­ realize that the old method of carrying his customers
try, will only serve to invite a more intimate study by on open account, thereby financing transactions which
others, with the result that the system will always constitute direct obligations of . the buyer, is, in this
time, when business efficiency is at a premium, illog­
profit and win new friends.
No system, whether in credit, finance or the opera­ ical in the extreme, unprofitable and unsound.
T o allow perfectly good live commercial credit to
tion of governments, is free from abuse, nor is it in its
working perfect from the outset. W e learn by experi­ remain tied up for 30, 60 or 90 days in illiquid open
ence, and perfect our laws or customs as we use them. book accounts when such credits could, and should be
From the beginning the Council has been convinced released for other service is a reflection on the busi­
that the principles underlying the use of the trade ac­ ness judgment of the American merchant. W hereever the trade acceptance is
ceptance were sound; but the
used certain cardinal prin­
method of operation has been
ciples should always be fol­
in many ways im proved; and
“The American Acceptance Council frequent­
lowed. It should be used only
while its advantages have
ly receives requests for information on accep­
tances from merchants in various parts of the
where goods are sold on time
been emphasized, its limita­
country, and jthe statement is too often made
and for current live accounts.
tions also have been frankly
that the inquirer’s banker either does not know
It should approximate the
stated.
or will not tell, in the application of accep­
date of invoice and should run
T o state that the trade ac­
tances to modern business such abuses as may
appear can be spotted quickly by the alert
for no longer time than the
ceptance is not abused would
banker. The acid test of credit analysis can
usual open account terms. It
be as untrue as to make the
and should be applied to acceptance usage as it
should be free from condition­
same claim for a promissory
is to promissory notes, and within its rightful
al or involved agreements, in­
note, check, or any kind of in­
territory the trade acceptance wlil function to
terest charges, or discount,
the immeasurable benefit of the entire com­
strument in which the ele­
munity.”
and , represent plainly the
ments of credit are involved.
amount of the invoice. It
Abuse or misuse of any in­
must never be used as a re­
strument by which money or
credit is obtained is due to the moral decrepitude of newal of matured or unpaid acceptances, nor as a
the individual and not through the instrument through means to secure additional working capital.
The practice of using acceptances for the purpose
which such money or credit is secured. W e must de­
pend in all our business affairs upon the general of collecting old or what are known as dead ac­
honesty of all men and the highest business honor and counts cannot be too roundly condemned. Such prac­
integrity of those with whom we have dealings. Laws tice if general would unquestionably lead to serious
are not made to create honest men, but to punish dis­ consequences, if it did not in time impair the effi­
ciency of the acceptance as an instrument of credit.
honest ones.
W hen correctly drawn and honestly used in strict Like any other medium by which credit is granted, the
accordance with the terms of the Federal Reserve Act acceptance, to function properly, must be understood
and good business practice, the traae acceptance repre­ by banker and business man. That thousands of both
sents the highest form of liquid commercial asset and are now fully aware of the possibilities for good
enjoys the highest percent of payments at maturity of through the use of the acceptance is attested by the
any credit instrument. And there is no mystery or records of the American Acceptance Council. That
magic about this. Reduced to the simplest terms it is many merchants are yet to be converted is unquesmerely a time draft drawn by the seller of merchan­ tidnably true, but it is with the banker that I am
dise upon the buyer, made out in accordance with the chiefly concerned and to whom I direct my attention
regular terms of sale, running for the usual credit at this moment.
I speak advisedly when I say that the reason the
period and for the same amount as the invoice. It is
purely a negotiable promise to do exactly as the buyer trade acceptance has not made greater headway is due
very largely to the attitude of the banker. Notwithagreed to do when the goods were ordered.

T


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Federal Reserve Bank of St. Louis

22

THE

N ORTH W ESTERN

standing the strong endorsement of the Federal Re­
serve Board, the National Association of Credit Men,
American Bankers Association, State Banking asso­
ciations, and strong trade associations of the Coun­
try, there are a large number of bankers in every sec­
tion who apparently fail to appreciate the intimate
relation between the business of their community and
the institutions over which they preside, or whose
study of credit conditions has not gone far enough
for them to realize the large advantage to themselves
and their clients through the adoption of this credit
instrument as an aid to better morals in business and
better credit and banking conditions.
There are thousands of merchants who would glad­
ly undertake the task of converting their unusable
“ Accounts Receivable” into trade acceptances if they
felt they had the support and co-operation of their
bankers. If the banker fully appreciated the benefit

BANKER

October, 1920

of the trade acceptance he would advise his customers
to sign the trade acceptance because there are upon
books of the wholesale houses and the ^manufacturers
of this country about eight billion dollars in tied-up
assets, and there is no way that this enormous sum
can be used as credit except by the use of the trade
acceptance.
T o the average merchant, the banker is the financial
doctor. He needs the banker’s co-operation and ad­
vice, and the banker who neglects such an opportunity
for service, particularly in this time of commercial
stress, is recreant to his trust.
The acceptance is here to stay as part of the busi­
ness and financial life of the country, whether or not
the occasional banker or business man would have it
so. It is only a question how soon it will be before
its usefulness becomes so generally recognized that
its friends will be legion and its critics few.

T he Public Is Entitled to the Facts
Farm mortgage banker discusses Kansas attitude
on tax exempt securities
By C. B. Merriam
T IS interesting to note that the work in which the
farm mortgage men of this country are engaged,
agricultural financing, is from the standpoint of
commerce, America’s greatest business enterprise.
It has been determined by responsible statisticians
that seventy cents of every dollar in this country comes
from the farm. Another way of saying it is that
agriculture furnishes seventy per cent of the nation’s
efficiency. About forty-five per cent of our popula­
tion is agricultural. Agriculture is America’s greatest
industry, and yet the average city business man gives
it only an incidental consideration. W hen business
as a whole depends to the extent of seventy per cent
upon «agriculture for its support, it is plain that the
business man who doesn’t make a consistent attempt
to uriderstand the economic problems of agriculture,
and of those engaged in it, is not a good business man.
I want to explain what has been done in the state
of Kansas to bring before our people the evils of tax
exempt securities.
Kansas has 1,350 state and national banks with
capital and surplus of 70 million and with total de­
posits of 500 million. Kansas has about 5,000 men who
are engaged as officers in the banking business and
we all know these men generally are the leaders in
their respective communities and they are seeking the
truth.
All Kansas banks are divided into eight groups ac­
cording to location. Each group contains about 175
banks. In October and November, 1919, at each group
meeting embracing every bank in Kansas, the presi­
dent of the Kansas Bankers Association brought up
to each session the evils of tax exemption and after
discussing the Federal Income and W ar Profits Tax,
he then made a statement as fo llo w s:
“ Next to the Profits Tax, the most unfortunate
feature of contemporary taxation is the exemption
granted to various types of bonds. Municipal bonds
have long been exempt from all taxes in most states
and have thereby made it possible for very rich men
to escape all, or nearly all, taxation. The appeal of
the tax exempt security to investors increases in pro­

I


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portion to their tax burdens;— the greater the burden
the greater the appeal. Inevitably the market price
for tax exempt securities is fixed by the demand for
them by those investors who, by owning them, can
escape the heaviest tax burdens. It shifts the 'bur­
den from the shoulders of those best able to bear it.
“ In this connection I want to say that issuing bonds
under the Federal Farm Loan Act, making them tax
free, is in my judgment absolutely w rong in principle
and unjust to 99% of our people. For no system of
government, free or autocratic, can retain the support
of a nation when that government frankly begins to
take money from most of its citizens to hand over to
a favored few.. And that is exactly what the Federal
Farm Loan A ct accomplishes. A t a considerable cost
to the American people for every dollar loaned in this
manner, .the United States Government is filling the
lock boxes Of the rich with tax exempt securities.’1’
Many of the bankers present were largely ignorant
of the real workings and injustice of the tax exempt
securities and I am very much pleased to advise that
after a general and thorough discussion of this sub­
ject, every group save one (and the only reason this
group did not endorse the resolution was because of
the fact that of the three members of the Resolution
Committee, one was formerly president of the Federal
Farm Loan Board and one was entirely engaged in
the sale of tax free municipal bonds) adopted and
passed the following resolution :
R E S O L V E D , That we favor the repeal by the Con­
gress of the United States of the law authorizing the
existence of the Joint Stock Land Banks for the reason
that they give government protection and encourage­
ment to a profitable private enterprise that is loading
the country with tax exempt bonds ; and
R E S O L V E D , That we favor the non-exemption of
securities from taxation except as such apply to con­
stitutional exemptions as applied to religious and
charitable institutions.”
Furthermore, a simliar resolution was adopted at
the state convention of all Kansas bankers held in
W ichita, in May, 1920.

October, 1920

THE

N ORTH W ESTERN

BARKER

-2 3

T a x E x em p tio n Is Insidious Foe
of the Financial W orld
Farm M ortgage Bankers Association is fighting certain
provisions of the Federal Farm Loan A ct
By E. D. Chassell
Secretary Farm Mortgage Bankers Association
A X exemption is the tuberculosis of the financial
and economic world. Its inroads have been in­
sidious ; its grasp is relentless; its cure is diffi­
cult ; its eradication may be effected by simple methods
if persistently applied. A complete cure would do
much for the general prosperity and contentment of
society.
The Federal Farm Loan A ct was founded for good ,
purposes. If worthy of the purposes for which it was
created, it will continue to endure on a business basis,
paying its own expenses without a subsidy from the •
national treasury. The most glaring fallacy in the
foundation of the Federal Farm
Loan A ct is the assumption
that tax exemption benefits to
the investor under a graduated
income tax are passed on to the
borrower. The educational cam­
paign of the Farm M ortgage
Bankers Association has been
principally directed toward en­
lightening the public upon this
point.
A t the time the Federal Farm
Loan was enacted, our income
tax was nominal, recently ap­
plied and unknown to 99 per
cent of American tax payers. At
the present time the highest
rate of federal income tax is
73 per cent;
W hen the law was enacted,
the national government was
paying 2 per cent on most of its
obligations, then approximately
only one-twenty-fifth of the
amount of the public debt at the
present time.
The theories of taxation and
finance created in the minds of
dreamers at that time, were
quickly tried in the fierce fires
of experience.
Federal Land Bank funds
were raised by the sale of twenty year bonds, the pro­
ceeds of which were loaned for 35 years. This dan­
gerous plan of financing was based on the supposition
that the low interest rates prevailing in 1917 would
continue, or that they would be reduced. The theor­
ists thought it impossible for interest rates to go
higher.
The national treasury is now paying six per cent
on its last borrowings and liberty bonds have depre­
ciated to a similar basis. W hen the greatest creditor

T

F r o m an a d d re s s a t th e K a n s a s C ity c o n v e n t io n o f th e F a r m
M o r t g a g e B a n k e r s A s s o c ia t io n o f A m e r ic a .


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nation on earth pays an interest rate three times
higher than six years ago, the private borrower must
expect to be affected by such competition. Federal
Land Bank 4y2°/o bonds and Joint Stock Land Bank
5% bonds are offered at 86 to 8 8 wi th very few sales.
No one can predict the outcome with absolute cer­
tainty, but taking into consideration conditions on
both sides of the Atlantic, no well informed author­
ities predict an early return to pre-war rates of
interest.
Of the approximately $346,000,000.00 of Federal
Land Bank loans now in force, on which farmers are
paying interest, $17,300,000.00
never reached the pockets of
the farm borrower, although
they pay interest on that amount
every six months. This is rep­
resented by stock in the Federal
Land Banks, held by the Co­
operative National Farm Loan
Associations. St has been rep­
resented to borrow ers'by agents
and literature of the Federal
Land Banks that this $17,300,000.00 would be a very profit­
able investment for the farmers.
They were led to believe that
they would receive frequent and
large dividends.
About half of the Federal
Land Banks have never paid any
dividends, so that five and a half
per cent interest which the
farmers have paid to these
banks has been a total loss to
them up to date. A few of the
banks have paid what they call
a 6 per cent dividend. As the
farmers had the year previous
paid 5y2 per cent interest on the
face value of their stock, the
payment of a six per cent divi­
dend is substantially a refunding
of the previous year’s interest.
But this refunded interest in most cases does not all
get back to the farmer. It is paid by the Federal Land
Bank to the local Farm Loan Association, and the
locaj association can use part or all' of it to pay local
expenses or to put into a reserve fund for future use.
Erroneous statements are sometimes made official­
ly and it is absolutely impossible to secure correc­
tions. “ The Borrower’-s Bulletin” the official organ of
the Federal Farm Loan board, in a long article pub­
lished in the May-June issue of 1919, lead the reader
to believe that the rate of interest charged to Federal
(Continued on page 116.)

24

THE

•

N O RTH W ESTERN

BANKER

Traffic-Teeming W aters
F rom the batteaux o f the fur traders, the
lake carriers have grow n through m any stages
to the great freighters that bear in their holds
the ores, tim ber and grain from the N orth -w est
to the furnaces and mills o f the large centers.
F I AO the financin g and d ev elop m en t o f the traffic o f

the Great Lakes the C on tin en tal and C om m ercia l
Banks have con tribu ted , as they have participated in
financin g m any other lines o f com m erce and industry
in the rich territory tributary to C h ica go.

TheCONTINENTAL m j
COMMERCIAL

BANKS
C H IC A G O
In vested cap ital more than 5 0 M illion H ollars
R esources more than $ 0 0


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Federal Reserve Bank of St. Louis

M illion H ollars

October, 1920

THE

October, 1920

N ORTH W ESTERN

BANKER

25

T h e R a lsto n -N o la n B ill and the
American Farmer
Speaker at Farm M ortgage Bankers Convention brings three
indictments against proposed land tax
By H. G. Hathorn
HE Ralston-Nolan bill, which proposes a direct fed­ the legitimate field of federal taxation ; it would override
eral tax on all land values in excess of $10,000, immemorial custom; it would usurp authority properly
violates the principles of sound and equitable tax­ pertaining to local, municipal and state governments. It
ation; first, because it is based on-the theory of the single is wrong in application because it would take a common
land tax, which all local trials have proven a failure, and burden from the shoulders of all the people, and place it
which has never even had a trial by a national govern­ principally on the farmers, who are one class only, and a
ment of recognized stability; second, because it specifical­ minority of the whole people. The shrewd sophistry of
ly provides exemption for one class of invested capital, the proponents of this bill cannot cloud the eyes of
and imposes additional burdens on another class, equally reason and convince clear-thinking men that this
deserving o f exemption; third, because it empowers the legislation would not fall most heavily on the farmers,
federal government to impose a direct tax on real prop­ who, as a class, have always been the mainstay of the
erty, a taxing function which should only be exercised government in peace and its strongest defense in war.
by county, municipal and state governments.
The Ralston-Nolan bill gives no credit for land values
" The Ralston-Nolan bill does not attempt to improve actually created by individual effort and augmented by
existing tax laws, equalize unfair distribution, or lessen development for which concerted local price and commu­
the burden on the whole people; on the other hand, it nity co-operation are alone responsible. Diversified farm­
seeks, by unjust discrimination, to shift a part o f the un­ ing with the proper rotation of crops is the only system
diminished burden from one class to another class.
of farming that will inevitably add intrinsic value to the
The'Ralston-Nolan bill penalizes thrift and industry land and certainly increase both individual and commu­
because it would impose a direct tax on values actually nity wealth.
A man buys 320 acres of land at $50 per acre. He pays
created by the owners of valuable farm lands.
for it in five years by intensive
The Ralston-Nolan bill pro­
cropping
and the sale of staple
vides the means for certain
crops. He has paid no atten­
highly organized industries to
“The Ralston-Nolan bill is a direct attack on
tion to diversification and ro­
escape a part of their just ob­
progress, and a sinister thrust aimed at the
tation of crops and has grown
ligation ; and, on the other
heart of agricultural development. It would
no live stock.
The soil is,
hand, compels another class,
penalize the thrift and industry that braved the
therefore, no more productive
terrors of the unknown; carved pathways
not so well organized, to as­
than when he bought it. A c­
through the heart of a continent; built homes
sume obligations not properly
in the wilderness; marked the limits of the
cording to the provisions of the
belonging to them.
earth’s greatest agricultural empire; and pro­
Ralston-Nolan bill, at a valua­
The Ralston-Nolan bill makes
jected the star of hope on the horizon of unborn
tion of $50 per acre, he'must
no attempt to eliminate objec­
generations.”
•
pay in addition to his local taxes
tionable features of the present
and his income tax, on an ex­
federal income tax law ; it
cess of valuation of $6,000. He
merely seeks to reduce the tax
paid by its advocates, and, without suggesting equitable does not care to do this, and, therefore, sells at $50 per
adjustment, would place an- additional tax on another acre, 160 acres to a thrifty tenant. The tenant sees great
class, who are themselves already paying a federal tax, possibilities in the land, and by diversification, rotation of
the same in proportion to their incomes as that paid by crops and live stock not only pays for the farm in ten
other individuals, industries and business concerns. With years’ time, but doubles his crop yields. He has actually
a contemptuous indifference to all principles of right qnd increased thè intrinsic value of the land, not merely 100
justice the advocates of this bill ignore the fact that^near­ per cent, as is superficially indicated, but 200 per cent, be­
ly all the farmer’s 'capital is invested in the land itself; cause land whose productive capacity has been doubled
that his land is more liable to either federal or local tax­ so greatly increases the margin of profit that its intrinsic
ation than is the capital invested in any other business en­ value is three times what it was at the beginning of the
terprise1or industrial pursuit; and that Ihe bill specifical­ improvement period. So the land is now worth $150 per
ly provides exemption from federal taxation for onp class acre.
In the meantime, the original owner of the 320 acres
of invested capital, and with no color or right, imposes a
heavy additional burden on another class, equally deserv­ has not changed his methods on the 160 acres retained
ing of consideration. With characteristic stupidity they by him, and the deterioration is so evident that even a
seek to perpetrate this gross injustice, and thus they fur­ marked improvement in community conditions does not
nish the strongest possible incentive to every man and make his land worth more than the $50 per acre he orig­
every interest gaining support directly or indirectly from inally paid for it. What is the result? The original
agriculture to organize and force the defeat of their ne­ owner, not particularly shiftless, but merely unpro­
gressive ; not specifically a knocker, but a sort of drag on
farious scheme.
The Ralston-Nolan bill is primarily and basically community development, has reduced his holdings so
(Continued on page 120.)
wrong. It is wrong in principle because it would leave

T


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26

THE

N O RTH W ESTERN

BANKER

October, 1920

Remedy for High Interest Rates Is
Just Plain Thrift
Profiteering and extravagance have boosted m oney rates
and thrift will bring them down
By John Moody
President Moody’s Investors Service
H E remedy for high interest rates is just plain ness, measured in dollars, has outgrown our capital sup­
thrift. It was extravagance in prices, in wages, ply or accumulated savings.
in margins of profit, and in standards of living that
Practically our entire output of commodities, goods
made money rates high; and the elimination of the ex­ Ind products, conies from oUr farms, forests, mines, fac­
travagance is fully capable of restoring the money mar­ tories and fisheries. In adding in the output of the fac­
ket to an easy position.
tories, o f course, the cost of the raw material is deducted,
Thrift and high interest rates are as incompatible as and only the value added by manufacture is included.
fire and water. They simply cannot get along in the
At the prices of 1914 our mines, forests, farms and fish­
same world at the same time. By thrift we mean, of eries produced in the aggregate about $22,500,000,000 of
course, the practice and policy of making our living, or goods, but at the prices of 1919 their production amounted
income, through giving the public a square deal; and of to about $53,700,000,000. In 1914 it required about $15,constantly saving a portion of that income, and adding 300,000,000 of bank loans to finance the business of the
it to our permanent wealth. Too large a part of the American people; and at the same ratio of loans to the
earnings of the American people has lately been derived value of output we needed in 1919 aggregate loanable
from overcharging and profiteering; and too large a funds of $36,500,000,000.
minority of our people have abandoned, or suspended,
Otherwise expressed, prices went up so fast and far
the habit of laying aside a portion of their income.
that the typical bank, in order to satisfy the requirements
What we ndfed is thrift in business, and thrift in our of its borrowers would have to be able to lend about
personal finances. ' T o carry it into business means to $2,380 for each $1,000 that it loaned in 1914. Some
make money through a large output at a fair margin per banks^ which have enjoyed exceptionally rapid growth of
unit; and to carry it into our personal finances means to deposits can do this, but the great majority cannot. They
permanently save a portion of each year’s income, and to cannot, partly because the typical business man has ad­
add thereby to the total supply
vanced his prices or charges too
of capital, and to help keep in­
fast, and partly because the typ­
terest rates down. To prosper
“ High prices and high interest rates are in­
ical community has borrowed
separable. There never was a high money
through excessive prices and
too much in comparison' with
market without high prices, except perhaps in •
charges for our output or serv­
its savings. Present monetary
the early stages of great wars, or upon some
ices, and to forever borrow
problems can be solved through
other occasions when the flow of capital through
from banks more than we de­
its normal channels was violently disturbed.
saving more, and marking
T hrift means moderate good prices, and à
posit in them, is not thrift. It
prices up less; and the sum of
comfortable money market.”
is profiteering and extrava­
these two things is thrift.
gance, and it pushes money
Manifestly it is legitimate
rates higher and higher.
that prices should advance un­
Prices and interest rates have gone hand in hand be­ der such trade conditions as have recently prevailed. It
cause they could not help it. It takes twice as big a bank would be foolish for anyone to contend otherwise. The
loan to carry a thousand bales o f cotton at 30 cents as it harm to the money market, however, has come not from
does to carry the same at 15 cents. The grocer must bor­ the rise in prices, but from the excessiveness of the rise.
row twice as much to lay in a stock of flour at $13 a bar­ For example, the price of rubber tires went up about 70
rel as he formerly did to lay in the same stock at $6.50. per cent, although crude rubber fell lower and lower;
Just so in every business, whether it is manufacturing, the price of spot cotton went up 200 per cent, although
transporting or distributing goods— the higher prices go, the cost of production surely did not more than double;
the more capital it takes to finance the business.
and the price of labor in the industrial centers advanced
Since 1914 the aggregate production and distribution 110 per cent, while its efficiency diminished 10 or 20 per
of the American people has increased just about 20 per cent.
cent, and prices have gone up about 100 per cent. In , The future of interest rates comes right down to A ques­
other words, our total yearly business is about 120 per tion of prices. The total value of our business needs to
cent greater than it was before the war, measured in be reduced to the point where the banks can finance it;
value, and, therefore, in order to have a comfortable and this does not call for any decrease at all in the quan­
money market we need 120 per cent more working capi­ tities o f output. The cry of the times is for more produc­
tal to handle this business. But we do not possess any tion at fairer prices. Since 1914 margins of profit, even
such amount o f working capital. Even if all our people though they are figured on the higher prices, have very
had invariably saved 10 per cent out of each year’s in­ generally increased from a quarter to a h a lf; and this
come— which they have not done— the addition ’ to our signifies that profits per unit have been fattened more
pre-war capital supply would be only about 63 per cent. than justice would permit. The war inflation and the
In brief, we are short of capital, or of w hat,everyone spirit of extravagance removed the ordinary public reloosely calls “ money,” for the simple reason that our busi­
(Continued on page 96.)

T


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Federal Reserve Bank of St. Louis

» 'I

a: &

m f"*

Chicago Leads in the Manufacture of Furniture
More furniture js made in Chicago than at any other place in the World.'
In fact} one-fifth o f all the furniture produced in the United States is madein Chicago.
T h e total annual output o f furniture in the U nited States is valued at $250,000,000, the Chicago
output at $50,000,000.
This impressive development in Chicago has come about largely in recent years. W ithin three
years one concern has increased its production from $1,500,000 a year to $5,000,000 a year.
Chicago has the largest chair factory in the world, making 600,000 chairs annually. T h is same
concern makes more reed furniture than any other and is the largest importer o f rattan in the
United States.

It employs 1,000 workers.

There are ten furniture exposition buildings in Chicago, one being the largest in the world. In these
buildings the wares o f 400 to 500 concerns are examined by 5,000 buyers every July and January.
There is hardly any furniture, from the most, severely practical to the most highly artistic, from the
simplest to the most expensive, for whatever purpose, that is not produced in Chicago. A lso many
things which do not come under the strict definition o f furniture, yet which are closely allied with
it such as office fixtures, billiard tables and bowling alleys are made here and would swell the total
output to twice the totals given above.
For further information on "Chicago In T h e Manufacture o f Furniture” , send for
our industrial bulletin N o . 3 which contains a reprint o f an illustrated article on
the m aking o f furniture from the Fort Dearborn Magazine, also additional data.

Fort Dearborn National Bank
Serving all lines o f Industry
Comer. Clark and Monroe
T h is is the third o f a series o f Fort Dearborn Advertisem ents on
G reat Industries o f Chicago, which w ill appear in this paper.


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V

mm

C«r

tVAoi-.Wi/fWSbW«

B oosling Bresenl Balances
T F the value o f C ra d d ick Service w ere

plan

-*■

O u r m eth ods and the ch aracter o f our

strictly co n fin ed to its dem onstrated

of

m an y

distinguishing features.

ability to b rin g new accounts to clients,

service fro m the b egin n in g, have alw ays

on that basis alon e it w o u ld be an asset

been o f the sam e h igh standard as those

to a n y bank— large o r small.

o f the

B u t its

scope is broader,1 m o re exten sive than
that.

b an k in g

fraternity

B ecau se o f its capacity

C ra d d ick S ervice n ot o n ly brings n ew

fo r secu rin g

faces to the b an k w in d o w s but w orks

day the n e w

m o re than sev en hu ndred banks.

e n t accoun ts to a

m o re

we

definite results, C ra d d ick S ervice is to ­

in tensively fo r the d evelop m en t o f pres­

business

departm ent

of
O ur

profitable and

association w ith n um erous o f these banks

co m p le te u je o f th e bank’ s services-—

dates b a ck a co m p lete decad e— ten years

boostin g p resen t balances.

o f con tin uous,
vice.

C ra d d ick Service is a business-extension

p erson al, profitable ser­

W rite or wire fo r complete story o f Craddick Service and
what it can do fo r you r bank.

CRADDICK SERVICE
^ ^ n n jT cicd y id ^ Q riiA i/ y i
M IN N E A P O L IS


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Federal Reserve Bank of St. Louis

w h ic h

serve.

October, 1920

T H E

N O RTH W ESTERN

BANKER

29

B lu e -sk y L egislation Is N eed ed
Banker should have an important part in form ing new
corporation laws when legislatures next meet
By the Legal Department
Questions of interest to bankers are discussed in this
enterprises there is no
H E recent wave of
department and any subscriber has the privilege of writing
doubt but that the money
mad
speculation,
for information and ad' ice on legal subjects. He will re­
invested in commercial
the formation of
ceive a direct reply from our attorney without fee or ex­
corporations
would be
pense.
A
brief
of
any
subject,
involving
research
in
a
so many wild cat com ­
complete Law Library, will be furnished for $10.00. In
much safer than it is
panies, and the get-richwriting for information, kindly enclose a 2-cent stamp for
now.
quick promotion schemes
reply and address “ Legal Department,” care The North­
The banker was as bad
that have robbed so many
western Banker, Des Moines, iowa.
an offender as anyone in
citizens of the middle
west have had their inception largely in the ease with this wild cat stock craze, because the banker was
which such schemes could be carried out. In Iowa, looked to for information and direction to a large ex­
especially, the corporation laws were written a num­ tent of the investments of his depositors.. Especially
ber of years ago, and were primarily designed as a is that true in thecountry banks. But avarice strikes
convenient vehicle for the carrying on of business by and the desire to get rich quick will affect the farmer,
a number of people associated together for that pur­ the banker and section hand on the railway equally.
There is no reason why the man who buys stock
pose, without the resultant liability of a partnership.
Our laws made absolutely no provision for promotion in a manufacturing corporation, or in. a packing com ­
expenses of any kind other than giving the general pany or in a mercantile company should not have
right to the Executive Council of the state to approve the same protection that is accorded the man who
the issuance of stock for services rendered in the for­ makes a deposit in a bank or who invests his money in
mation of the corporation, and the amount of stock a policy of insurance. There is no reason why he
issued for such services was entirely governed by the should not be permitted to learn something about
discretion of the executive council. The assumption such corporations through the state department as he
was that the stock would all be subscribed and the would be to learn whether his insurance policy was
corporation would be what is known as a “ closed” safe or whether the bank was reliable. W hen our
organization at the time it received its charter. The legislature meets this winter there is bound to be a
wild cat was organized under no such assumption as demand for blue-sky legislation. W hile it is true that
this. No attempt was made to sell stock in the ma­ we have a blue-sky law, yet it is also true that the
jority of these corporations until the promoters had blue-sky law applies to foreign corporations and some
secured a charter in this state. Absolutely the only of our own home-grown ones were the wildest of
thing the state may pass upon before granting a char­ them all. Our legislation so far has been very much
ter to corporations is to determine whether the articles like criticizing the faults in our neighbor’s children,
of incorporation are in due and legal form, whether while our own are in very grave need of discipline.
there is any conflict in name with any other corpora­ The banker, especially the country banker, will be a
tion organized in this state and whether the general very strong factor in outlining this legislation and he
purpose of the corporation as set forth in its articles should fully advise himself with the needs and with
is legal. The Secretary of State under our present the laws as they exist at the present time. The Sec­
law has no right to refuse a charter on account of the retary of State will be glad to furnish on application
personnel of the organization, or if he knows and has a small pamphlet containing the corporation laws of
absolute proof that the real purpose of such organ­ our state and the blue-sky laws as well, and it would
ization is for the purpose of fraud or is otherwise pay every banker, or any other business man or w o­
illegal. The Secretary of State or any other state offi­ man to fully/advise themselves as to the laws as they
cial has absolutely no right to require a report from exist at the present time, of their weakness and their
any corporation as to whether or not the conduct of strength, so that revision may be made in an intelli­
their business is legal. The Attorney General may gent and conservative manner.
by quo warranto proceeding inquire into the finances
Citizenship.
of the company, but he has no state record upon which
The adoption of our latest amendment to our Con­
to 'base any such action. W hile the officers of a com ­
pany are individually liable for any funds invested stitution practically doubled the voting population of
for the purpose of the company, yet it is very diffi­ the United States. It then becomes material for us
cult and expensive to the state to dig up the evidence to know the qualifications for these new voters.
Everyone is more or less familiar with the naturaliza­
necessary to eliminate these fraudulent practices.
A bank is subject to an investigation by the state tion laws of the United States and we know that
bank examiner, and while our banking laws are not when a foreign man is naturalized his wife and minor
perfect, yet we realize what would be the effect if we children are also naturalized without any affirmative
act on their part. W e are more or less familiar with
had no bank supervision.
Insurance companies are compelled to submit to the effect of naturalization, but very few of us have
very rigid* examinations and must at all times keep a given serious consideration to the effect of expatria­
record of all securities in which their funds are in­ tion. One text book says; “ T o expatriate one’s self
vested on file with the state department. If such means, in a general sense, to quit one’s country, re(Continued on page 114.)
a supervision was exercised over other commercial

T


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Federal Reserve Bank of St. Louis

30

THE

N ORTH W ESTERN

BANKER

October, 1920

Personal Paragraphs
Theo. S. Pallas, assistant manager of the foreign
department of the Great Lakes Trust Company, of
Chicago, has just returned from an extended trip
through the Mediterranean countries where he went
in the interest of the bank and its customers, for the
purpose of making direct connections with banks and
merchants who might be in the market for American
made goods. He reports great interest in the possi­
bilities of trade between these countries and the
United States.
$---- - $ ------ $
. Thomas H. Brewer, president of the Fidelity Na­
tional Bank, Spokane, W ashington, and a prominent
figure in banking circles and civic life of Spokane died
recently of sleeping sickness.
$ ------ $-- ----- $
Burnett Walker, who for a number of years has
been associated with Harris, Forbes & Company, has
joined the Bond Department of the Guaranty Trust
Company, of New York. Mr. W alker has been active
in legislative and taxation matters for the Investment
Bankers Association since its organization and in re­
cent years has been interested in foreign financing.
He will become a vice president of the Guaranty Com­
pany of New York when the business of the bond de­
partment of the trust company is taken over by the
new company.

Albert C. C. Timm, who has been with the First
National Bank of Chicago, for more than thirty-five
years has retired as assistant cashier of the institu­
tion and is succeeded by James W . Lynch as assistant
vice president of division D in the official organization
of the bank. Mr. Lynch had been manager of the
credit and statistical department since 1912. Edward
M. Tourtelot, assistant manager, *was advanced to
manager.

$--------- .$----- ------$
Geo. M. Reynolds, president of the largest national
bank in Chicago, is quoted as saying that the tremen­
dous increase in bank deposits in that city is in a con­
siderable measure due to prohibition. The aggregate
deposits in Chicago banks is $400,000,000.
$ ----- $--- ---- $
W illiam P. Sharer, of Zanesville, Ohio, was recently
elected president of the Midland Bank, the new $6,250,000 bank which is being organized in Cleveland.
The capital of the institution will be $5,000,000 and
the surplus $1,250,000 making the bank the largest
ever formed in this country. Mr. Sharer has been
very active in the American Bankers Association,
having served two terms on the Executive Council.
He is at present chairman of the Public Relations
Committee of the association. He was president of
the Ohio Bankers Association in 1911-1912.

R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N 1 B A N K E R w h en w ritin g to ou r advertisers.


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Federal Reserve Bank of St. Louis

October, 1920

THE

N O RTH W ESTERN

Joseph W . Bradley, vice president of the Old Na­
tional Bank, of Spokane, W ashington, has been
selected by President Stewart D. Beckley, of the
American Institute of Banking Section of the Amer­
ican Bankers Association as conference chairman at
the annual convention in Minneapolis next summer.
$-----------7$ ------------- $

H. P. Beckwith, president of the North Dakota
Bankers Association and president of the Northern
National Bank, Fargo, N. D., together with his wife
and two sons enjoyed an automobile trip to Duluth,
Superior, and the iron range of Minnesota, recently.
$------------- $------ ------- $
Lieut. Col. Hanford McNider, son of C. H. McNider,
Mason City, Iowa banker, was chosen head of the
American Legion of Iow a at the state encampment
recently. He entered the service as a second lieuten­
ant at the beginning of the war and was discharged
with the rank of lieutenant colonel. He was a mem­
ber of the Ninth infantry of the second division. He
was decorated for bravery six times. Iowa members
of the legion are going to boost him for national com­
mander at thè encampment next year.

31

BANKER

CORN EXCHANGE
NATIONAL BANK
OF CHICAGO
C a p i t a l ..........................$ 5,000,000
S u r p lu s a n d P r o fits • 10,000,000
D e p o s i t s ..................... 115,000,000

$-----------$-----------$
James Heckscher, vice president in the foreign divi­
sion of the Irving National Bank has just returned
from a business trip abroad during which he visited
banking centers in England, France and Scandinavia.
It is the policy of the bank to keep in touch with its
foreign correspondent banks. Others members of the
department who are on similar missions are William
N. Enstom, who has left for the Far East, and will
visit Japan, China and the Philippines; G. N. Jacobs,
who is now in England, and C. W . Fowler, representa­
tive in Porto Rico, who is in New Y ork on business.
------------$------------- $
Fred I. Kent, vice president of the Bankers Trust
Company, of New York, has just published a pam­
phlet entitled “ The United States of America Since
the Armistice.” This is an address delivered in Paris
last June before the Congress of the International
Chamber of Commerce, by Mr. Kent. It was such an
authoritative presentation of financial conditions in
this country that reprints of it were widely circulated
> in England and France. The American Chamber of
Commerce had it translated into Spanish for distri­
bution in that country and the Italian Chamber of
Commerce into Italian for distribution in Italy. Mr.
Kent was director of the Foreign Exchange for the
Federal Reserve Board during the war and for the
past year has been in France devoting much of his
time to work with the Reparation Committee.
$ --- --- $-------$
G. C. Zenzius, cashier of the Merchants National
Bank, St. Paul, when asked what was the oddest ex­
perience in his banking career told the following
story : In the early days of his banking experience as
a paying teller, his accounts showed a difference of
$400 at the end of a particularly hard day. He went
over his records, checked and rec'hecked but the differ­
ence still remained $400. A t the end of five nerve rack­
ing days he confessed the shortage to the cashier.
“ H ow about that keg of pennies from the mint?” he
asked. During the five days Mr. Zenzius had gone
over his cash in the vault each time he had sat on a keg
containing 40,000 pennies, the $400 difference he had
been looking for which he had failed to credit him­
self with.
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Federal Reserve Bank of St. Louis

E R N E S T A . H A M I L L , C h a irm a n o f th e B o a rd
E D M U N D D . H U L B E R T , P re sid e n t
C H A R L E S U. H U T C H IN S O N , V ic e P re sid e n t
O W E N T . R E E V E S , J R ., V ic e P re sid e n t
J. E D W A R D M A A S S , V ic e P re sid e n t
N O R M A N J . E O R D , V ic e P re s id e n t
J A M E S G . W A K E F I E L D , V ic e P re sid e n t
E D W A R D F . S C H O E N E C K , C a sh ie r
L E W I S E . G A R Y , A s s is t a n t C a sh ie r
J A M E S A . W A L K E R , A s s is t a n t C a sh ie r
C H A R L E S N O V A K , A s s is t a n t C a sh ier

D IR E C T O R S
W A T S O N F . B L A IR
CHAUNCEY B. BORLAND
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
CLYDE M. CARR
H EN R Y P. CROW ELL
E R N E S T A . H A M IL L
EDM UND D. H U LBER T

CHARLES H . HULBURD
C H A S . L . H U T C H IN S O N
J O H N J. M IT C H E L L
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 EDD
R O B E R T J. T H O R N E
CHARLES H . W A C K E R

B A N K E R w h en w ritin g to ou r a d vertisers.

32

THE

N ORTH W ESTERN

What a Commercial
Borrower Appreciates
The business man naturally turns to his
banker for advice on all financial problems.
This is particularly trfie now on account of •
the exacting credit requirements in all lines
of trade and industry.
The banker can perform a tremendously
helpful function for his commercial customers
by pointing out the advantages that are to be
gained from a complete audit of their books by
a certified public accountant. An audit of this
character helps to create closer relations be­
tween the banker and the custom er; it often
suggests new and better ways for the cus­
tomer to handle his business; it fortifies the
banker’s judgment in extending financial ac-:
commodations.
The majority of commercial customers who
are borrowing money like the idea of a com ­
plete audit at least once a year because they
realize it is a strong contribution to sound
and profitable business methods. They know
also that it gives them a stronger standing
at the bank. The banker, therefore, will find
it worth while to encourage all bôrrowers to
have a complete audit by a certified public ac­
countant at regular intervals.
Many of your customers may be glad to
receive a suggestion aboutv a complete audit.
If so, we shall be pleased to explain our plan,
which is giving satisfactory results in hun­
dreds of business establishments.
The services of our highly trained account­
ants, located at our branch offices in different
parts of the country, are at your disposal.
They will be glad to consider the auditing
problems of the bank or any of its customers.

WOLF AND COMPANY
N ew Y o rk
P h ila d e lp h ia
A tla n ta
In d ia n a p o lis
M ilw a u k e e
T u ls a

Accountants

chicado

form erly Baker, Vawter D e " » Io in is y
& Wolf)
O k la h o m a C ity
M u sk o g e e
F o rt W o rth

DES M O I N E S
1101 R & T BLDG.

BANKER

October, 1920

Vallee O. Appel, who has occupied the position of
trust officer of the Great Lakes Trust Company,
Chicago, has been elected secretary also, to succeed
Alan S. W allace, who resigned to take up another
line of activity. Mr. Appel served as an officer with
the 86th division in France up to the time of joining
the staff of the Great Lakes Trust Company.
$------ ■-----$----------- $
William B. Geery, who recently resigned his posi­
tion as vice president of the Capital National Bank, St.
Paul, Minn., to" become deputy governor of the Ninth
Federal Reserve Bank was the guest of honor at a din­
ner given at the Minnesota Club by John R. Mitchell,
chairman of the board, to the officers and directors
of the Capital National and the Capital Trust and
Savings Bank. Mr. Geery had been with St. Paul
banks for more than thirty years. As an expression
of their regard, the officers presented him with a
beautiful silver vase and the employes gave him a
gold watch.
$ --------;------ $----------- $
P. O. Bjorenson, vice president of the First Na­
tional Bank at Milford, Iowa, will enter the Iowa
State University this term. He will make a special
study of banking, commerce, commercial law, and
bank advertising.
$ ------ $------- $
TheodoreRousseau,secretary of the Italy-Amer^ca
Society, was notified recently by Signor Sforza, the
Italian Minister of Foreign Affairs, that K ing Em­
manuel had named him a Cavalier of the Order of the
Crown of Italy. Mr. Rousseau is now with the Guar­
anty Trust Company, of New York.
John

$------ $------- $
C.Mechem has been elected
a vice president

of the First-Trust & Savings Bank, Chicago. He will
be associated with vice presidents Louis Boisot and
R oy C. O sgood in charge of the trust department. For
the past year he has been doing special work with the
Lee, Higginson & Company’s Boston office and prior
to the war practiced law in Chicago, being a mem­
ber of the firm of Mechem, Bangs & Harper, which
dissolved when Mr. Mechem entered the army.
$-------$------- $
James Waller Marshall has been elected manager
of the bond department of the Chicago Trust Com­
pany. Mr. Marshall has been associated with this de­
partment for several years and as assistant manager
has been in active charge for several months.
$
$
$
^ F. A. Cuscaden, vice president in the Commercial
banking department of the Northern Trust Company,
Chicago, is back at his desk after a month’s vaca­
tion spent in the northern lake country.
$----- -$ ------ $
TheNational Bank of theRepublic, of Chicago, has
taken steps to install a W om en’s Department to take
care of the needs of the continually increasing num­
ber of women in the business world. Miss Ethel P.
Brigham, who has been with the bank a number of
years has been elected an assistant cashier in charge
of the ne\v department.

$------- $------ $

T. P. Junkin, formerly in charge of theDepartment
of Operation of the Industrial Finance Corporation,
has been appointed general manager.
Arthur J.
Morris, founder of The Morris Plan system and vice
president ^nd general counsel of the Industrial Finance

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Federal Reserve Bank of St. Louis

October, 1920

THE

N ORTH W ESTERN

BANKER

T he Country Banker
and the Whllis
There is a definite economic bond between the
W a llis 7- AM ERICA ’S FO REM O ST T R A C ­
T O R —and the c o u n try banker. E a ch is
necessary to increase production. The Wallis
enables the farmer to do his farm work at the
i right time in the right way. By its use the
land is properly plowed, planted and cultivated.
The crops are harvested and threshed in time
and profits taken.
Bankers are interested in build­
ing up their communities. They
k n o w increasing farm yields
will do that.
That’s w hy Wallis and country
bankers serve a common pur­
pose. The J. I. Case Plow W orks
C om pany has dedicated its
forty-three years to solving the
problems o f the farmer and in
the W allis T ractor presents a
power plant, quality built and

s e r v ic e sure. T h e C o u n tr y
Banker and W ALLIS have a com­
mon aim. Let us have a common
understanding. W e are serving
together for greater production
and greater community happi­
ness and prosperity. W e shall be
very glad to respond to requests
for information relative to the
Wallis and what it is doing for
farm ers e v e r y w h e r e . Y o u r
knowledge is the farmer’s pro­
tection.

J. I. Case Plow W o rk s Company
Dept. A - 837, Racine, Wisconsin

'ALLI
S
-more acres per hour
N O T IC E: W e want the public to know that the
W A L L IS TRACTOR
is made by the J . I . C A S E P L O W W ORKS
C O M P A N Y o f Racine, Wisconsin, and is
N O T the product o f any other company with
“ J. I . C A SE ” as part o f its corporate name.


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Federal Reserve Bank of St. Louis

33

THE

34

N ORTH W ESTERN

BANKER

October, 1920

T o tryjior 5 days—-to satisfy yourself th a tjt pays for itself in time, labor and
convenience, we will send this guaranteed, fractional coin counter to you all
charges prepaid.

,

,

Is a Speedy Accurate, Durable* Portable Low-priced Coin Counting M achine
It’s a revelation in banking efficiency. Many say it saves them the services of one employe— as indispensable as the tele­
phone, adding machine or typewriter. You have long needed it. Counting fractional coins by hand is usually inaccurate and
always costly— it must be done— do it the quick, easy way— time has a money value. The machine itself in use is its own
salesman. Send for trial today. A post card will do.

C o u n ts : P en n ies, N ick els, D im es
or Q uarters at th e rate o f 800 Per
M in u te , 48,000 per h ou r.

Over 5,000
Are In Use

sá

How Long Does It Take
YOU

bbT

To Accomplish That Result
BY H A N D ?
a

High Polish Black
Enamel Finish
Nickel Trimmed

Coinometer Company
M anufacturers o f Coin Counting Machines Since 1912

East Atwater and Bates Sts.


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Federal Reserve Bank of St. Louis

DETROIT, MICHIGAN

THE

October, 1920

N ORTH W ESTERN

Corporation is thus relieved of responsibility for ex­
ecutive and administrative details and will hereafter
give his undivided attention to the corporation’s finan­
cial problems, and the further development of the
system which now includes over 100 banks operating
in all parts of the country.

. $----------- $----------- $

Clifford DePuy, publisher of The Northwestern
Banker, is now taking orders from, a new general
manager in the person of Miss Evelyn Prouty DePuy,
born September 17th.
$— ---------$------------- -$

W. Z. Sharp, president of The Security National
Bank, Sioux Falls, S. D., is a candidate for the Board
of Directors of the Federal Reserve Bank of Minne­
apolis, the election to take place the latter part of
December.
$--------- $---------- $

AmericanBanks Multiply In Paris.
Rapid development of American banking facilities
in France and the establishment of new- branches in
desirable business locations is attractnig public at­
tention. Every facility is given the Americans, Fran­
cois Marsal, minister of finance, said in a published
interview and similar facilities are being sought and
are expected for French interests in the United States.

$----------- $---------- -$

35

BANKER

COMPLETE
SERVICE
is afforded to out-of-town banks
who select us for their Chicago
connection.
BANKING
BONDS

Our five departments
F0REIGN

SAVINGS
TRUST

render thorough and efficient ser­
vice on all transactions.
W e shall be glad to give details by
letter or send our representative.

Midwest National, Kansas City.
The Midwest National Bank and Trust Company,
Kansas City, Mo., celebrated its fourth anniversary
recently. The institution published a statement at that
time showing totals of $12,758,769.86. The capital
stock is $1,000,000, surplus and profits $322,892.32
while deposits amount to $9,150,412.54. P. E. Laughlin
is president of the bank.

$----------- $------------- $

Treatise on Wills.
The Fidelity Trust Company, of Buffalo, N. Y.,
has just issued a book entitled “ I Give and Bequeath,”
which is a treatise on the subject of wills, trusts and
estates. Copies will be furnished those desiring them
as it is believed it will be of interest to other banks
and trust companies who are trying to stimulate their
trust business.

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.

MEMBER FEDERAL RESERVE SYSTEM

Live Stock Exchange.
The statement of the Live- Stock Exchange Na­
tional Bank of Chicago at the last call shows deposits
of $17,893,509.45.
Total resources amount to
$26,147,014.76.

TH E NORTHERN
TRUST CO.-BANK

Canadian Bank of Commerce.

N. W . C O RNER LA SALLE & M O N ROE STS.
CHICAGO

The Canadian Bank of Commerce with its central
point at W innipeg, has decided to establish an addi­
tional superintendency in order to take care of the
grow ing business. The branches in Manitoba and
Saskatchewan will be under the supervision of C. W.
Row ley, superintendent, with headquarters at W inni­
peg. The Alberta and Peace River branches will be
under the direction of the superintendent at Calgary.

C a p ita l a n d S u rp lu s $ 5 ,0 0 0 ,0 0 0

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Federal Reserve Bank of St. Louis

36

THE

N O RTH W ESTERN

BANKER

October, 1920

Iowa Bankers Association
A D M IN IS T R A T IV E O F F IC E R S .

L. A . A n d r e w , P re s id e n t, P r e s id e n t C itiz e n s S a v in g s B a n k . . .O ttu m w a
C. E. L o fla n d , V ic e P re s id e n t, V . P res. O s k a lo o s a N at. B a n k . O s k a lo o s a
I v a n O. H a s b r o u c k , T r e a s u r e r , C a sh ie r A m e s N a tio n a l B a n k . . . . A m e s
F r a n k W a r n e r , S e c r e t a r y .......................................... ........ ................. D e s M o in es
C O U N C IL O F A D M IN IS T R A T I O N .

G e o r g e S in c la ir , C h a irm a n G r o u p 1.
V ic e P r e s id e n t W o o d b u r y C o u n ty S a v in g s B a n k ...................... S io u x C ity
F . B. D a v is, C h a irm a n G ro u p 2.
C a sh ie r F a r m e r s S a v in g s B a n k .................... •...........................................M a n son
S. J. O s g o o d , C h a irm a n G r o u p 3.
C a sh ie r P e o p le s T r u s t & S a v in g s B a n k ........................................ I o w a F a lls
F . S. R ic h a r d s , C h a irm a n G r o u p 4.
C a sh ie r F i r s t N a t io n a l B a n k ...................................................................M cG re g o r
A.
F . G r e e n w a ld t, C h a irm a n G ro u p 5.
C a sh ie r F ir s t N a tio n a l B a n k ............................................................C o o n R a p id s
A . M. H e n d e r so n , C h a irm a n G ro u p 6.
C a sh ie r F ir s t N a t io n a l B a n k . . . . . ......................................................S t o r y C ity
A . B . A lle n , C h a irm a n G ro u p 7.
C a sh ie r P e o p le s S a v in g s B a n k ................................................. V in t o n
E m il W e b b ie s , C h a irm a n G r o u p 8.
C a sh ie r M u sca tin e S ta te B a n k ..........................................M u sca tin e
E . N. D o u g h e r t y , C h a irm a n G ro u p 9.
P re s id e n t F a r m e r s & M e rc h a n ts S a v in g s B a n k . ......... C r e sto n
THE

C. E . B em a n , C h a irm a n G ro u p 10.
P r e s id e n t P e o p le s T r u s t & S a v in g s B a n k ..................O s k a lo o s a
E . A . F r e n c h , C h a irm a n G ro u p 11.
C a sh ier S e c u r ity S ta te B a n k ................................................... K e o k u k
J. H . M cC ord , e x -o ffic io .
P r e s id e n t C itiz e n s N a tio n a l B a n k .............................. '. . . . S p e n c e r

G R O U P S E C R E T A R IE S .
2. M e m b e rs o f th e E x e c u tiv e C o u n c il:

G. J. S lo b e , S e c r e t a r y G r o u p 1.
C a sh ie r N o r th w e s t e r n S ta te B a n k ............................. O r a n g e C ity
J. F lo y d , R ic h , S e c r e t a r y G ro u p 2.
A s s is t a n t C a s h ie r F ir s t N a t io n a l B a n k .................... F o r t D o d g e
M. W . E llis , S e c r e t a r y G ro u p 3.
P r e s id e n t S e c u r ity T r u s t & S a v in g s B a n k ............. C h a rle s C ity
B . J. M cK a y , S e c r e t a r y G ro u p 4.
C a sh ie r C itiz e n s S a v in g s B a n k ........... .................................D e c o r a h
C. F . A n d e r s o n , S e c re ta r y G rou p 5.
C a sh ie r I o w a S ta te B a n k ........................................................A t la n t ic
O. F . E c k lu n d , S e c r e t a r y G ro u p 6.
C a sh ier F ir s t N a tio n a l B a n k ............................
N e w to n
J. L . J o n e s, S e c r e t a r y G ro u p 7.
C a sh ie r A m e r ic a n T r u s t & S a v in g s B a n k .................... W a t e r lo o
J o s e p h K e ls o , S e c r e t a r y G ro u p 8.
C a sh ie r B a n k o f J. K e l s o ....................................................... B e lle v u e
A . E . B la ir , S e c r e t a r y G r o u p 9.
C a sh ie r F a r m e r s S ta te B a n k ........................................ G ra n d R iv e r
C. D. E v a n s , S e c r e t a r y G ro u p 10 .
C a sh ie r S ou th O ttu m w a S a v in g s B a n k .......................... O ttu m w a
W . D. H a n n a , S e c r e t a r y G r o u p 11.
C a sh ie r B a n k o f W in fie ld .............................................. . . . . W i n f i e l d

J o h n A . C a v a n a g h , P r e s id e n t D e s M o in e s N a tio n a l B a n k ,
D e s M oin es.
C. J. W o h le n b e r g , C a s h ie r H o ls t e in
S a v in g s B a n k ,
H o ls te in .
G e o r g e S. P a r k e r , S io u x C ity .
C. H. M cN id er, P r e s id e n t F ir s t N a tio n a l B a n k , M a son
C ity.
E. B. W ils o n , P r e s id e n t F ir s t T r u s t & S a v in g s B a n k ,
D e s M oin es.
B. B. C la rk , P r e s id e n t Red, O a k N a tio n a l B a n k , R e d O ak.
W . W . F itz , P r e s id e n t F a r m e r s S a v in g s B a n k , M an son .
3. M e m b e r N o m in a tin g C o m m itte e :

E . D. H u x fo r d , P r e s id e n t C h e r o k e e S ta te B a n k , C h e ro k e e .
4. A lte r n a te M e m b e r N o m in a tin g C o m m itte e :

J o h n A . D u n la p , V ic e P r e s id e n t K e o k u k N a tio n a l B a n k ,
K eokuk.
5. V id e P re s id e n t T r u s t C o m p a n y S e c tio n :

J. O. T ru m b a u e r , V ic e P r e s id e n t F a r m e r s L o a n & T ru s t
Co., W a te r lo o .
6. V ic e P re s id e n t S a v in g s B a n k S e c tio n :

O. F . F r y e r , P r e s id e n t I o w a S ta te S a v in g s B a n k , F a ir field.
7. V ic e P re sid e n t N a tio n a l B a n k S e c tio n :

A . R . A . O F F I C E R S IN I O W A .
1.

G e o r g e B. P e r k in s , P r e s id e n t F ir s t N a tio n a l B a n k , S ac
C ity .

V ie e P re sid e n t f o r I o w a :

R a y N y e m a ste r , V ic e P r e s id e n t A m e r ic a n C o m m e r c ia l
& S a v in g s B a n k , D a v e n p o r t.

8. V ic e P re s id e n t S ta te B a n k

S e c tio n :

T h eo. L a s k o w s k i, P r e s id e n t C o u n c il B lu ffs S a v in g s B an k,
C o u n c il B lu ffs.

P R E S I D E N T ’ S C O M M IT T E E S
(First Named Is Chairman)
A G R IC U L T U R A L C O M M IT T E E .

H. O. Taylor. . . . . Bloomfield ...P resident National Bank of Bloomfield
Chas. G. Cockerill. Farlin
............President Firlin Savings Bank
(Address Mr. Cockerill at Jefferson)
D. H. Hedrick. . . .Battle Creek. .President Battle Creek Savings Bank
E. O. Stearns. . . .Van Wert . . .Cashier Van Wert State Bank
C. H.
McNider. . .MasonCity ..President First National
Bank
C. R. Carpenter. .F a y e tte .................President State Bank
B. B. Clark..........Red Oak. . . . President
Red Oak National Bank
W.
J. Moore.........Tipton ...............President City National Bank
C. E. Narey.........Spirit Lake
..President First National Bank
W ill A. Lane..........Waterloo ..........Cashier First National Bank
C. M. K eck............ Washington . ..Vice President Commercial Savings Bank
E D U C A T IO N .

A.
O. Smith......... C lin to n .............. President City National Bank
J. E.
Evans........ Cedar Falls
. .President Citizens Savings Bank
Theo.Laskowski. . . Council Bluffs. President Council Bluffs Savings Bank
J. F. W . Vrba. . . .Garner ............ Cashier First National Bank
Grant McPherrin .Des Moines . .President Central State Bank
C. O. Jacobson. . . .Mapleton ....P r e s id e n t First State Bank
G. C. Taylor-----..S p irit Lake ..V ic e President Spirit Lake National Bank
J. C. Jordan....... Ottumwa ...........President Iowa National Bank
Walker D. Hanna. W in fie ld ..........Cashier Bank of Winfield
J. F. Becker..........Elkader .......... Cashier Elkader State Bank
N. O. H offm an .. .M u r r a y ............ Cashier Murray Bank
L E G IS L A T IV E .

M. H. Calderwood. Eldridge ......... President Eldridge Savings Bank
C. J. Wohlenberg.Holstein . . . . ¿Cashier Holstein Savings Bank
M. W. F itz............Manson .............President Farmers Savings Bank
H. B. Allfree. . . .Newton ..........Vice President First National Bank
F. M. Hopkins. . .Guthrie Center .President Peoples State Bank
Geo. J. Sdialler . .Storm Lake . .Vice President Citizens First National Bank
L E G IS L A T IV E A D V IS O R Y .

J. J. Large. . . . .Sioux City . . .President First National Bank
Geo. B. Perkins ..S a c C i t y ..........President First National Bank
J. H. McCord. . . S p e n ce r............President Citziens National Bank
F. H. Helsell. . . .Fort Dodge . ..Vice President Webster County Nat’l Bank
S. J.M Osgood
W - - • -Jowa F a l l s ------Cashier Peoples Trust and Savings Bank
W. G. O. Bagley. .Mason City . ..Vice President First National Bank
L. B. Whitney. ..D ecorah ..........President National Bank of Decorah
A. R. LeRoy
Manchester . . .President First National Bank
Carl F. Kuehnle. .Denison ..........President Bank of Denison
C. T. Schenck. . . Red O a k ..........President First National Bank
A. M. Henderson. . Story City . . . Cashier First National Bank
John Carmody
. .Perry . ............ Cashier Perry National Bank
A. B. Allen. . . . .Vinton ............ Cashier Peoples Savings Bank
E. W. M iller.. ..W aterloo ....P r e sid e n t Commercial National Bank
Joseph Kelso . . . Bellevue ......... Cashier Bank of J. Kelso
Gustav Stueben . . Davenport . . . .Cashier Scott County Savings Bank
E. N. Dougherty. . C reston ............ President .Farmers and Merchants Sav. Bk.
Bert Teale
. . Mt. A y r ..........Vice President Iowa State Bank


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Federal Reserve Bank of St. Louis

JJE.
O.

S ' ■Ma,cirey..........Sigourney....C a sh ier
First National Bank
F- W ebber.......... Ottumwa . .. . ’ r >sident Ottumwa National Bank
A. French..........Keokuk ............ Cashier Security State Bank
W. Riggs.......... Libertyville
. .Cashier Libertyville Savings Bank
BANK FORMS.
C. C. St. Clair. . . .Marshalltown .President First National Bank
W. F. Moore..........Guthrie Center.Vice President Peoples State Bank
Fred B. W ray. . . .Waterloo ....C a s h ie r Leavitt & Johnson National Bank
V. R.. Martin. . . . . Kellogg ........... Cashier Burton & Co. State Bank
Charles Howard ..D e s Moines ..V ice President Iowa Loan & Trust Co.
COMMERCE AND MARINE.
Frank B. Tetter. .Davenport .. .V i c e President Iowa National Bank
E- H. Furrow. . . . Cedar Rapids . Cashier Merchants National Bank
Frank Epperson . .Eddyville . . . .President Manning & Epperson State Bank
E. J. Murtagh . . .Algona ............ President County Savings Bank
B. J McKay..........Decorah . . . . . Cashier Citizens Savings Bank
•h?“ u,-A Cavanagh. Des Moines ..President Des Moines National Bank
H. M. Carpenter. .Monticello . . .President Monticello State Bank
FEDERAL RESERVE.
O. F. Fryer............. Fairfield .......... President Iowa State Savings Bank
J- F. T oy................Sioux City ...P resid ent Toy National Bank
J. K. Deming. . . .D u b u q u e ..........President Second National Bank
GOOD ROADS.
L. K- Moore............D u n la p ...............President Dunlap State Bank
W* A. Hopkins. . . . Lamoni . . . . .President State Savings Bank
M. W. E llis ...........Charles City . .President Security Trust and Savings Bank
C- L. W right.......... Knoxville ....P r e s id e n t Marion County National Bank
E. W e b b ie s............ Muscatine ....C a sh ier Musicatine State Bank
W. P. Caldwell. . .Drakesville . . .Cashier Bank of Drakesville
G. A. Stewart. . . .Dexter ............ President Iowa State Bank
INSURANCE.
J. L. Edwards. . . .Burlington . . .President Merchants National Bank
F. A. Schuetz. . . .-Lawler ............ Cashier State Savings Bank
E. B. W ilson..........Des Moines ..President First Trust and Savings Bank
TIME LOCK.
John P. Kirby. . . . Estherville , . . .President First National Bank
Martin Newcomer. .Cedar Rapids .Asst. Cashier Cedar Rapids National Bank
Ray Nyemaster . . . Davenport . . . .V. Pres. American Commercial & Sav. Bk.
TRADE ACCEPTANCE.
A. F. Dawson. . .. Davenport . . . .President First National Bank
J .O. Trumbauer. . Waterloo ......... Vice President Farmers Loan & Trust Co.
Homer A. M iller..D es Moines ..President Iowa National Bank
A. F. Balch............ Marshalltown ..President Marshalltown State Bank
Simon Casady .. .D e s Moines ..Chairman of Board Central State Bank
AUDITING.
W. A. W.illiamson. Reasnor ......... Cashier Reasnor Savings Bank
W . N. Enyart. . . .Agency ............Cashier Agency Savings Bank
Hugh L i t t l e ..........Prairie City . .Cashier First National Bank

THE

October, 1920

N O RTH W ESTERN

BANKER

37

IO W A B A N K N E W S
F r a n k W a r n e r , A s s o c ia te E d ito r (S e c r e ta r y I o w a B a n k e r s A s s o c ia tio n )

New Cashier At Bagley.

Bank Elects Officers.
Several changes of importance have been made in
the official staff of the C oggon State Bank, Coggon,
Iowa. S. N. Goodhue, former president, has disposed
of his interests and resigned his position. He goes to
California to make his future home. D. D. Johnson,
cashier, was elected president, succeeding Mr. Goodhue. F. W . Lindahl •was advanced to cashier from
assistant. Mr. Johnson and Mr. Lindahl have been
active in the management of the bank
The institution has a capital stock of $50,000, a sur­
plus fund of $15,000 and undivided profits in the sum
of $19,804.54. Deposits are $455,600.70.

Roland Bank In New Building.
The Farmers Savings Bank, Roland, Iowa, held the
formal opening of the new building recently. Visitors
were shown through the bank and favors distributed.
The building is a two story brick structure with a
terra cotta trim. Private offices for the officers, two
vaults, one for the bank and a safety deposit vault, a
directors room, ladies room and the banking room are
located on the first floor. On the second is a large
assembly room to be used for public gatherings.
Four office rooms are also located on this floor.
The bank was organized in 1899 with a capital stock
of $25,000. O. M. Grove is president; S. J. Michaelson, vice president and O. S. Boyd, cashier.

E. R. Harris has been elected cashier of the Farmers
Savings Bank of Bagley, Iowa. Mr. Harris has been
a state bank examiner in the district in which Bagley is located and is thoroughly familiar with the bank­
ing business and financial conditions in the com ­
munity.

Hampton Banks Hold Corn Contest.
The Citizens National Bank and the Hampton Sav­
ings Bank, of Hampton, Iowa, are putting on a seed
corn contest, for which prizes are offered for the best
display. The object is to stimulate interest in the,
selection o f seed corn and thus insure better crops
and more prosperity in the community.
Farmers are at liberty to enter one or both con­
tests. There are two classes, one for white and one
for yellow corn. A member of the extension depart­
ment of the Iowa State College, Ames, will judge
the corn and give a short talk at the time the prizes
are awarded.

Bank at Zwingle Increases Capital.
The Zwingle Savings Bank, located at Zwingle,
Iowa, recently increased the capital from $10,000 to
$ 20,000.

FARMERS SAVINGS BANK, ROLAND, IOWA.


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Federal Reserve Bank of St. Louis

38

THE

N O RTH W ESTERN

BANKER

October, 1920

Correspondents
Demand High Speed Action
H I R T Y -E I G H T years of successful
A banking- built on the bed rock of ser­
vice to our customer-correspondents has
constructed th e h i g h speed action of
“ Drovers Service” — a service which has
been developed to the point of absolute
safety and efficiency for your accom m o­
dation.
This High Speed A ction is possible only
because of ourlocation at the Union Stock
Yards, Chicago. Here, we give our cus­
tomers credit and interest on the proceeds
of stock shipments the d a y the stock is sold.
However, this is but one phase of Drovers
Service— here, every type of banking is
available for the accom m odation of our
customers.
For T o d a y ’ s A c tio n — “ Use Drovers Service”

DROVERS NATIONAL BANK
U n ion S tock Y a r d s, C H IC A G O

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Federal Reserve Bank of St. Louis

October, 1920

THE

N ORTH W ESTERN

BANKER

Des Moines Bank Opens.
Thé United State Bank, of Des Moines, opened for
business September 20th, in its rooms at 412 Securities
Building.

Calumet State In New Building.
The Calumet State Bank, Calumet, Iowa, has just
completed its new bank building.
The structure
is of fireproof construction, the exterior being of dark
face brick and Bedford stone trim. The interior is

Are You Sale-:—when you loan to a client that
can’t in these days of ever changing
business conditions show you real,
substantial proof by the means of
correct figures of his unquestionable
solvency?
You can easily see how it would
simplify your loaning— how your
relations with your clients would be­
come more cordial— if they could
present to you with a loan request,
an audited^ statement of their busi­
ness conditions carefully prepared
by a Certified Public Accountant.
Then your loans would be upon a
real business basis.

Calumet State Bank

finished in Madre marble and quarter sawed oak. The
building represents an expenditure of $35,000. The
Lytle company of Sioux City were the architects.
The capital stock of the bank has been increased
from $25,000 to $50,000 to take care of the constantly
increasing business. The institution also has an earned
surplus of $25,000. The bank is situkted in a town of
about 250 population and last year deposits amounted
to approximately $500,000. Geo. Reifsteck is cashier
of this progressive bank.

Martin Newcomer Elected Vice-President.
W ith the announcement of the election of Martin
Newcomer as vice president of the Cedar Rapids Na­
tional Bank recently there comes the information that
he will be in charge of the country bank business
and country bank loans of this popular institution.
It is doubtful if there is a banker in Iowa, who is more
generally or favorably known than Martin Newcomer,
and it is particularly gratifying to hundreds of Iowa
bankers, that after eighteen years of faithful service
he should receive this merited recognition.

BETTER BUSINESS CLIENTS.
If your clients were to use the
“ Accountancy Service Plan” in­
augurated by Billings, Prouty and
Tompkins, there would be available
at all times a complete statement
of business conditions for this plan
makes available “ constantly” . (not
just once .a year) our services for
the preparing of audits or Federal
Tax Reports.
Our services are used by many
banks and are open to you.
If you are interested in learning
more b f this service by which both
you and your customers will profit,
one which many bankers recommend
to their clients, M A IL T H E A T ­
T A C H E D CO U PO N T O D A Y .

Let us tell you more about it.
S ig n th e c o u p o n a n d m a il t o d a y !

Billings, Prouty & Tompkins
Certified Public Accountants
M em bers A m erica n I n s titu te o f
A cco u n ta n ts

Des Moines, Iowa
DAVENPORT, WATERLOO
CEDAR RAPIDS

R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers.


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Federal Reserve Bank of St. Louis

39

THE

40

N ORTH W ESTERN

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1
1

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N ATIO N A f
BANK
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S IO U X

October, 1920

Establish New Bank.
It has been announced that a new bank will be
organized in Des Moines by the Des Moines National
Company, the institution to occupy quarters in the
northwest corner of 15th and Locust streets. A new
building will be erected.
No name has been announced for the new bank.
Officers and directors will be practically the same as
those of the Des Moines National Bank.

i
i

i

C IT Y , IO W A

BANKER

i

Elected Officers of Tire Company.
The Hawkey e Tire and Rubber Company, Des
Moines, Iowa, have announced the election of John
C. DeMar as secretary and Geo. L. R ow e as treasurer.
They will fill the positions vacated by C. B. Hextell,
who resigned as secretary and treasurer.
Mr. DeMar is a practising attorney of the city. He
is also United States district attorney for southern
district of Iowa.
Mr. Rowe is cashier of the Mechanics Savings Bank.
He will continue his connection with the bank.

i
1

1

=
=

1

L et us figure
w ith y o u u pon
the handling
of y o u r
“ Cattle L oan s”

i

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1

To Erect New Building.

i

C o m b in e d r e s o u r c e s o f a ffilia te d

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.
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The Farmers National Bank of Shenandoah, Iowa,
is planning to erect a new five story building on the
site of the old one, at Clarinda and Sheridan avenues.
The first story will be devoted to the bank exclu­
sively and the other floors will be divided into offices
which will be rented.

I*

1

Former Iowa Banker to San Francisco.

It
ZE

When You Think of

AMES
The Home of the
Iowa State College
Also Think of the

Ames National
Bank
H . W . S ta ffo rd , P res.

I v a n O . H a s b r o u c k , C a s h ie r

C. F. Callister, a former resident of Fairfield, Iowa,
who for several years has been cashier of the Coolidge
and McClaine Bank of Silverton, Oregon, recently re­
signed his position to become associated with thè Fed­
eral Reserve Bafik of San Francisco. Mr. Callister’s
new position is in the credit department of the federal
bank.
Mr. Callister during his residence in Fairfield, was
assistant cashier of the Iowa State Savings Bank. In
1906 he moved to Silverton, Oregon. In 1911 he be­
came connected with the Coolidge and McClaine Bank
and deposits of the institution have tripled since that
time.
------------------------ ---------

Leon Bank Enlarges Quarters.
The Exchange National Bank of Leon, Iowa, is
making extensive improvements in its quarters. An
extra room is being added and the counter arrange­
ment changed, providing more space for the bank.
A private room is being arranged for use of pa­
trons having private business affairs to transact.

A L B E R T F . B A L G H , P r e s id e n t
CHARLES

GEORGE

G . T R I N E , C a s h ie r

A . T U R N E R , V ic e P r e s id e n t

HARRY

W . J E N N IN G S , A s s is t a n t C a s h ie r

A STATE BANK
and a

MEMBER OF THE FEDERAL RESERVE SYSTEM
Over Forty Years of Conservative Banking

72.93 M arsh alltow n State Bank
Marshalltown, Iowa
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Federal Reserve Bank of St. Louis

October, 1920

THE

N ORTH W ESTERN

BANKER

41

Vinton Man Goes To Illinois.
Marion E. W allace, Vinton, Iowa, for the past
two years employed at the Peoples Sayings Bank, has
accepted the position of cashier of the First National
Bank of W oodhull, Illinois.

Banks and Bank Stocks

Bankers Form County Association.
The bankers of Grundy County, Iowa, met recently
at Grundy Center, for the purpose of forming a County
Association. W . R. Finlayson, president of the First
National Bank, Grundy Center, acted as chairman of
the meeting. A committee consisting of E. L. Guild,
of the Conrad State Bank, E. G. Ensminger of the
Farmers Savings Bank, Morrison, and R. J. Kuehl,
cashier of the Grundy County National, Grundy Cen­
ter, was chosen to draft a constitution and by-laws.
W ill A. Lane, cashier of the First National of
W aterloo, gave a very interesting talk.
Another meeting will be held in the near future to
perfect organization.

•

T h e M arket fo r Iow a
Bank Interests
now centers very largely with The Bankers’
Exchange, in Iowa— which is geographically
logical, and a market is fundamental in order
to transfer any interest to the best advan­
tage.
For quick, confidential, advantageous serv­
ice place your bank interests in the hands of

Ida County Bankers Meet.
The bankers of Battle Creek, Iowa, were recently
hosts to the Ida County Bankers Association.
Supper was served in the dining room of the Mason­
ic Hall, after which the members adjourned to the
meeting place.
Forty-tw o members were present,
every bank in the county being represented but one.
The meeting was called to order by C. G. Fredell,
president, and O. C. Erickson, secretary gave a report
of the .affairs of the association since its last meeting.
A very interesting and beneficial program was en­
joyed and discussions of present conditions as found
in the county proved very instructive.
C. J. W ohlenburg, of Holstein, gave a talk upon his
visit to all of the Iowa Group meetings and the con­
ditions over the state generally as he found them. D.
H. Hedrick of Battle Creek gave a very interesting
talk on the matter of cattle feeding and the necessity
of that enterprise the coming season. Mr. Hedrick is
a large land owner, feeder and farmer as well as a
banker, and spoke from experience. A general discus­
sion of local conditions, financial and practical, was
indulged in by all members of the association.
General business affairs were transacted. U. S.
Baxter, of Ida Grove, extended an invitation for the
next meeting to be held there, which was unanimously
accepted. Much good is being accomplished and. a
more friendly feeling developed among the bankers of
the county and' the exchanging of ideas is very bene­
ficial to all.

The Bankers’ Exchange.
Bank workers o f all ranks fu r ­
nished, som e willing to invest.

The Bankers’ Exchange Inc.
Offices, 218-219 Securities Building
E.R. G r a y - P re s . Sr M ô r .

D e s M o in es,Io w a.
7

CITIZENS SAVINGS BANK
OTTUMWA, IOWA
Send Us Your Southeastern Iowa
Business
Accounts of Banks and Bankers Given
Prompt and Careful Attention
L. A. ANDREW , President
W ALTER T. HALL, Vice Pres.
E. M. ANDERSON, Asst. Cash.

The Capitol Hill Bank of Des M oines, Iozva, in­
vites your inquiry in regard to our Accumulative
Gold Bond Plan.
G. G. Thomas, President
W . M . Harder, Vice-President
Hyman Sosna, Cashier
R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers.


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Federal Reserve Bank of St. Louis

THE

42

C . H. EIGHMEY, President

N O RTH W ESTERN

- *

H. A. KOESTER, Cashier

First National Bank
DUBUQUE, IOWA
Capital, Surplus and Profits,
Resources
Accounts of Banks Solicited

October, 1920

Security Savings Bank.
The Security Savings Bank, Cedar Rapids, has is­
sued an- intereisting statement showing a comparison
of deposits since 1889, at which time the first annual
statement was issued with deposits of $60,133.53, and
the present statement with deposits amounting to $2,663,053.75. This is a period of about 32 years.

W . M . HETHERINGTON, V ice P r e s .

C. J . COLLIER, V ice P re s .

BANKER

C. T. Simmons Elected Assistant Cashier.
Clarence T. Simmons, a well-known banker in Iowa
and middle western banking circles, has accepted the
position of assistant cashier of the Muscatine State
Bank, Muscatine, Iowa.
Mr. Simmons has. had a wide experience in financial
matters. He began his banking career shortly after

$ 435,000.00
4,500,000.00

Write Us fo r T erm s

He has also served as state bank inspector and for the
past three years was a représentative of the Drovers
National Bank of Chicago, with headquarters at Dès
Moines.

CONTINENTAL NATIONAL BANK
OF S IO U X C IT Y , IO W A
T H E B A N K W H E R E Y O U R A C C O U N T R E C E IV E S P E R S O N A L A T T E N T IO N
A C O N S IS T E N T G R O W T H
DEPOSITS:
Aug. 18. 19J4 - $163.572
Aug. 18.1916 - - - $540.785
August 18, 1917 - - - - $809,526
August 18, 1918 - - - - • $1,006,841

August 18, 1919
T . F. HARRINGTON
President

A. J. M ORE
Vice President

-

-

-

F. E. G ILL
Vice President

-

$1,652,953
W . G . DUNKLE
Cashier

R . NASH
Assistant Cashier

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Federal Reserve Bank of St. Louis

THE

October, 1920

N O RTH W ESTERN

COM M ERCIAL
N a tion a l Bank
"Waterloo

43

BANKER

E v o lu tio n in Business

Iowa

The steam engine has replaced the stage
coach; the hand press of Ben Franklin has
given place to electrically driven Miehle; the
typewriter has succeeded the pen; machines
have replaced many bookkeepers and short­
hand is giving ground before the dictaphone.

C apital and Surplus

You logically want your connections to
be with progressive banks that are up-to-date
in every respect.

O n e-H a lf M illion D ollars

U p-to-the-m inute facilities and careful
service have earned for this institution the
confidence of many Iowa bankers.
Your
patronage will be appreciated.

OFFICER8
E. W . M ILLER, President.
F. C. P L A T T , Vice Pres.
H. W . W E N T E , Cashier.
S. C. KIM M , Asst. Cashier.
R. L. PEN N E, Asst. Cashier.

M ember Federal
Reserve System

B. F. Kauffman, President
C. H. Stephenson, Cashier

BANKERS TRUST COMPANY
C O R N E R F IF T H

AND

W ALNUT STREETS

CAPITAL ONE M ILLION DOLLARS
The high standard this bank 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.

. DIRECTORS
Ashton Clemens
J. W. Howell
H. H. Polk
Dr. O. J. Fay
B. F. Kauffman
R. R. Rollins
Henry Frankel
Addison M. Parker
F. W. Sargent
S. Sheuerman
0: H. Stephenson

Capital CityJ State
Bank
Des Moines, Iowa
offers safety and satisfactory service to those who
desire a congenial banking relationship.

RESOURCES EXCEED $3,000,000.00
W e Invite Your Business

I American Commercial |
i and Savings Bank ¡
of Davenport, Iowa
=
h

HI
1

700,000.00 ¡ ¡
C a p ita l s t o c k . . . . ........................................................$
700,000.00 ^
S u rp lu s ...................... .........................
............................
430,000.00 ü
U n d ivid ed p ro fits .
16,325,000.00 m
D e p o s its . . - .............. .......................

1
H e n r y W a g n e r , P r e s id e n t
D. J. V a n L ie w , V ic e P re s .
R o l f e O. W a g n e r , V ic e P re s .

G eo. W . R ic h t e r , C a sh ier
W il l A . L u g e , A s s t. C a sh ier
E. P . K e n n e d y , A sst. C ash.

Capital C ity State Bank
Bank Building, East F ifth and L ocu st Streets

H
=
=
H

OFFICERS
E D . K A U F M A N N , P re s id e n t
R A Y N Y E M A S T E R , V ic e P r e s id e n t
'
H. P . O E T Z M A N N , C a sh ie r
F ; C. K R O E G E R , A s s is t a n t C a s h ie r
F . A . JOH N SON , A s s is t a n t C a sh ie r

|f
Our adequate equipment and exceptional facilities for ||
jjj handling business in every department of banking are at f j
H your service.

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Federal Reserve Bank of St. Louis

M
m
^
s
¡§

M

44

THE

N ORTH W ESTERN

BANKER

October, 1920

County Protective Association Popular.
The Benton County Bankers Association met re­
cently at Van Horne at which time the matter of the
county protective association was taken up. A com­
mittee was appointed to arrange the details of organ­
ization.
The plan is being advocated by the I. B. A. and
many counties have already adopted it and more are
making arrangements for it. By co-operation between
the I. B. A. and the county associations it is hoped
to make the trail of the bank bandit so dangerous
that he will not care to blow safes in Iowa banks.

Ames Bank Purchases Building.
The Commercial Savings Bank, Ames, Iowa, re­
cently purchased the building at the southwest inter­
section of Main street and K ellogg avenue. The bank
will occupy the building sometime in the future at
which time it will be remodeled to suit the needs of a
financial institution.

A New Bond Concern at Waterloo.
The Guaranty Mortgage and Securities Company, a
recently incorporated institution at W aterloo, Iowa,
capitalized at $750,000 has opened an office in the
Black Hawk bank building.
The company will buy and sell bonds, mortgages, se­
curities and contracts, loan money, buy and hold real
estate.
The incorporators are J. W . Dwyer, W est Union,
A. C. Otterback, Iowa Falls, and T. H. Pletsch. Mr.
Pletsch will be manager of the local office. He is ex­
perienced in this line of business having been with
Ellsworth and Jones Company of Iowa Falls for a
number of years. Of late he has been with the Guar­
anty Bond and Trust Company of Chicago.

Farmers State Holds Annual Meeting.
A t the annual meeting of the Farmers State Bank of
Hawarden, Iowa, held recently, all of the old officers
and directors were re-elected, and the surplus fund in­
creased $10,000 out of the profits of the bank, making a
$20,000 surplus fund.
The institution has a capitalization of $50,000. No
change has been made in the officers or directors of thé
bank since its organization three years ago.
_ A splendid growth is reflected in the statement pub­
lished recently which shows deposits of $375,000 and
total resources of $487,000.
W alter Scott is president, M. Slife, vice president
and C. A. Slife, cashier.

COUNCIL BLUFFS SAVINGS BANK
COUNCIL BLUFFS, IOWA
Established 1856

Incorporated 1870

Capital - $150,000.00
Surplus - $175,000.00
A General Banking
Business Transacted
THEO. LASKOWSKI. Pres.
GEORGE A. KEELINE, Vice Pres.
W. M. PYPER, Cashier
H. W. HAZELTON, Asst. Cash.
H. C. HATTENHAUER.Asst.Cash.
E. R. JACKSON, Trust Officer

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Federal Reserve Bank of St. Louis

THE

October, 1920

N O RTH W ESTERN

BANKER

PESV’MOINES

)

C A P I T A L st S ? . T s t 2 , 0 0 0 . 0 0 0 7 y

BETTER SERVICE
Iowa bankers appreciate the better service that is made
available to them through our complete facilities.
See us when you come to Des Moines or write us and
learn how we can apply the many features of our spe­
cialized service in your interest.
Iowa’s Largest Bank’

IOWA NATIONAL BANK
D E S M O I N E S S A V IN G S
B A N K . A N D T R U S T CO.

E N T I R E S E C O N D F L O O R F L E M IN G B U I L D I N G DES M O IN E S , IO W A

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Federal Reserve Bank of St. Louis

45

46

THE

N ORTH W ESTERN

BANKER

October, 1920

TH E CITY NATIONAL BANK
OF CLINTON, IOW A

Capital, Surplus and Profits .
Deposits . . . . . . . . . .

. $ 600,000.00
$5,800,000.00

OFFICER S
A LFR ED C. SM ITH, President
OLIVER P. P E T T Y , Cashier

A LFR ED G. SM ITH, Chairman
GEORGE M. CURTIS, Vice President
J. H. N ISSEN, Assistant Cashier

H A L L E C K W . SEAM AN , Vice President
H. G. KRAM ER, Assistant Cashier

Accounts o f Banks, Corporations and Individuals received on m o st favorable term s.

Correspondence Invited

COMMERCIAL SAVINGS BANK
Mason City, Iowa
Capital and Surplus, $225,000.

Deposits over $1,900,000.

Special attention given to Country Bank business. The service we render will interest Banks in our
territory. Accounts and collections receive prompt attention.
OFFICERS:
A. M. SCHANKE, President
Li. 0 . STONE, Vice President
W ALTER J. W ALKER, Cashier

IRA W. STINSON, Assistant Cashier
HARRY O. WEEKS, Auditor
L. B. TYSON, Manager Sayings Department

M ASO N CITY'S FIRST SAVIN GS BANK

First N ational Bank
C O U N C IL BLUFFS, I O W A

Capital $ 2 0 0 ,0 0 0 .0 0
Assets Over
J.

P . GREENSHIELDS, President

E.

A. WICKHAM, Vice President

-

I

Surplus $ 2 5 0 ,0 0 0 .0 0
$5,000,000.00

G. F. SPOONER, Cashier

PERRY BADOLLET, Asst. Cashier

ROY MAXFIELD, Asst. Cashier

J. S. WATSON, Asst. Cashier

More than half a century of successful banking

■--------------------

-J t

T H E F IR ST N A T I O N A L B A N K O F W A T E R L O O
W A T E R L O O , IO W A
Chartered 1865
For over fifty years this bank has successfully served this community.
our immediate locality. Special attention given to accounts of banks

W e offer the same service to those outside

TOTAL RESOURCES OVER $2,900,000
*-------------------------------------------------------------------------------------------------- O F F I C E R S ------------------------------------------------------------------------------------------------J. W .

R A T H , President

A. M . P L A C E , Vice President

W IL L A. L A N E , Cashier

------------ D I R E C T 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 Oo.
A. M . P L A C E
Vice President
E. E. P E E K
President W aterloo Building and Loan Assn.


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Federal Reserve Bank of St. Louis

H* w - GROUT
Capitalist
W . W . MARSH
President Iowa Dairy Separator Co.
President Associated M anufacturing Co.
T . W . PLACE
Capitalist

J. T . S U L L IV A N
Lawyer
J. O. T R U M B A U E R
Vice President Farmers Loan and Trust Oo.
H. A. M A IN E
President H. A. Maine A Co..
W IL L A. L A N E
Cashier

THE

October, 1920

N O RTH W ESTERN

BANKER

47

D. G. Stiles Resigns.
Dan G. Stiles, vice president of the W ebster County
National bank and Cashier of the W ebster County
Trust & Savings Bank has resigned his position and
will leave for Chicago where he will be associated
with his father and brother in business.
A t a meeting of the directors J. L. Hanrahan was
made cashier of the savings bank.

Oskaloosa National Bank.
The statement of condition of the Oskaloosa Na­
tional Bank, Oskaloosa, Iowa, issued at the last call
of the comptroller of the currency, shows the bank
to be in very excellent shape.
The institution has a capital stock of $100,000, sur­
plus and profits amount to $115,498.91, deposits are
$1,191,889.45.
Total footings equal the sum of
$1,684,347.81.
The officers are W . H. Kalbach, president ; J. F.
McNeill, C. E. Lofland, vice presidents; E. L. Butler,
cashier and Fem e Roberts, assistant cashier.

The

Sioux National Bank
w ould appreciate your Sioux C ity
business

Capital
Surplus

-

-

$ 2 5 0 ,0 0 0
2 5 0 ,0 0 0

Swindlers Have New Game.
A bulletin sent out by the I. B. A. contains a warn­
ing to bankers of bank swindlers who are working a
new game. A man purporting to be a traveling rep­
resentative of a firm of wholesalers and importers in
Hartford, Conn., goes to a bank and asks to borrow
a small sum of money putting up his watch as personal
security. He claims he has not received his expense
check or has lost it. The watch has his initials on
and a picture of his wife and family. In one day
this scheme was successfully worked in three neigh­
boring towns and to each bank the party gave the
same kind of- a watch.

Jasper County Savings Bank.
The statement issued recently by the Jasper Coun­
ty Savings Bank shows the institution to be in a very
prosperous condition. The capital stock is $100,000
with a surplus of $50,000, net profits of $8,263.74, de­
posits are $1,263,546.58. Total footings amount to
$1,636,867.98.

W EBSTER C O U N TY
N A TIO N A L BANK
FORT DODGE, IOWA
CAPITAL $ 25 0 ,0 0 0 .0 0
W e serve the Northwestern Iowa Territory
— 3 % on Bank Balances.

W EBSTER C O U N TY
T R U S T & S A Y IN G S B A N K
CAPITAL AND SURPLUS $ 60 ,0 0 0 .0 0

Your business invited—Satisfactory service
Officers and Directors:
John B . Butler, President
D an G. Stiles, Vice-President
O. M . Thatcher, Vice-Pres.
M . F. Healy, Vice-Pres.
J. L . Hanrahan, Cashier
' Henry M . W asem
Louis Charon
D r. J. F. Studebaker
Charles A . Brown

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Federal Reserve Bank of St. Louis

48

THE

N O RTH W ESTERN

BANKER

October, 1920

Bank Employes Enjoy Picnic.

The Cedar Rapids
National Bank
W i t h Capital, Surplus and Profits of
$950,000.00
and Resources $15,000,000.00

Invites N e w Business
OFFICERS
R a lp h V a n V e c h te n , P res.
G le n n M. A v e r ill, V . P re s .
G eo. B. D o u g la s , V . P res.
M a rtin N e w c o m e r , V . P res.
K a r l H. R e h n b e r g , V . P res.
G eo. P . M ille r, V . P res.
C has. C. K u n in gV C a sh ier
A n n a R . S m o u se , A . C ash.
B e r th a M. W o lf , A . C ash.
P e te r B a ile y , C h ie f C le r k
G eo. W . S w a b ,
M g r. S a v in g s D ep t.

C

e n t r a l

C

T

r u s t

o m pan y

OF DES MOINES

Capital
Surplus

■
-

■
-

$1,000,000-00
735,000-00

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

The employes of the Council Bluffs Savings Bank,
enjoyed a picnic at the home of one of their number
recently. Games were played on the spacious lawn and
an excellent supper was served out of doors just at
sunset.
Dignity was added to the event by the presence
of Theo. Laskawski, president of the bank, and W il­
liam Pyper, cashier.

Belle Plaine Bank in New Home.
The First National Bank, Belle Plaine, Iowa, recent­
ly moved into its new home. The new building is
situated across the street from the old one where the
bank has been doing business for nearly fifty years.
The building is designed to provide every conven­
ience for better service to its customers.
A savings department has been organized and will
be a feature of the bank in the future.

A New Cashier.
W illiam A. Hanno, formerly a banker in Steen,
Minn., has been appointed cashier of the Farmers
State Bank, Ackley, Iowa.
Mr. Hanno was connected with the First Trust &
Savings Bank, Remsen, Iowa, at one time.

New Trust Company at Estherville.
A new company known as the Provident Trust Com­
pany has been organized at Estherville, Iowa. Articles
of incorporation have been filed and a charter granted.
The capital stock of the new enterprise is $100,000.
The officers a re: J. P. Kirby, president; M. K.
Whelan, vice president, and R. H. Riller, secretary.
Offices will be in the First National Bank.

Citizens State Opens.
The Citizens State Bank of W est Union, Iowa,
recently opened for business in the old post office
building which has been remodeled to meet the needs
of a financial institution. The bank has a capitalization
of $30,000 and a surplus of $10,500. The stockholders
are business men and farmers of W est Union.
The officers are J. W . Dyer, president; Jacob Gretemen, vice president; Nick Greteman, cashier and
Arthur E. Johnson, assistant cashier.

One of Iow a’ s Largest and Most M odern Fireproof Hotels

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

SCOTT EAW SON............
, CHARLES L. GILOREST
L. M. GRIMES............
TAYLOR GRIMES............
L. B. BARTHOLOMEW. .
R. E. JACKSON.................
SIMON CASADX
P. W. HUBBELL
L. G KURTZ
HENRY S. NOLLEN
CHAS. A RAWSON

................. ..
President
...............Vice President
Vice President— Trusts
. Vice President— Loans
. . . . Secretary-Treasurer
. . . .Assistant Secretary
R.
H.
M.
W.
N.

E. ROLLINS
E. RUMSEY
SAMISH
E. TONE
M. WILCHINSKI

W AH KO N SA HOTEL
FORT D O D G E , IOW A
I s th e h e a d q u a rte rs f o r h a n k e r s a t a l l tim e s . H a v e y o u r
m a ll s e n t to th e W a h k o n s a a n d w r ite or w ir e r e s e r v a tio n s .

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Federal Reserve Bank of St. Louis

THE

October, 1920

N O R TH W E STE R N

49

BANKER

Throughout The Length
and Breadth of Iowa
'T P H E Des M oines National Bank, although it bears the
A name of the city, is more than an institution to serve
any one com m unity. Through its relations with Iow a
banks and bankers its influence is felt throughout the
length and breadth of the State, in farming districts and
in business centers.
It has a broad constructive policy, always considering the
interests of the State, and ouilding on a strong founda­
tion for the future. Its sendee to its customers has stood
the test of good times and bad, proving that this bank
is more than a “ fait weather” friend.
You can feel the utmost confidence in this bank because o f
its strength of resources and the character of its personnel.
W e invite conference or correspondence from Iow a bankers.

D

es

M

o in e s

N

a t i o n a l

B

Resources M ore Than 822,000,000

Des M oines


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Federal Reserve Bank of St. Louis

Iowa

a n k

50

THE

N O RTH W ESTERN

BANKER

October, 1920

Helping Their Correspondents.

Men Are Becoming
More Critical
— of the kind of shirts they wear, and are
• finding

in

Swigert-Howard

made

to

measure shirts the assurance of style and
fit they have been looking for.
The name of Swigert-Howard in your
. shirt

means— fine

materials-—workman­

ship par excellence and exceptional, shirt
value.
Swigert-Howard shirts retain their shape
and comfort— they not only fit the man
but his individuality.
Samples and measurement blanks sent on
request.

Swigert-Howard
Made-to-Measure Shirts
Des Moines, Iowa

The Stockyards National Bank, of South St. Paul, has
been doing everything it can to help its correspondent
banks to finance their live stock customers.
Because of the tightening up of the credit situation
many cattle raisers have been forced to ship their cattle
to market before they had fully matured. In order to
prevent this the Stockyards National Bank has been tak­
ing care of its correspondent banks to the very best of its
ability and recently sent out a letter addressed, “ To Our
Correspondents,” and which is reproduced in this issue
of The Northwestern Banker explaining its desire to be
of service in every possible way to the live stock industry
of the Northwest.
J. E. Markle, vice president of the Stockyards National
Bank, states the question concisely when he says: “ W e
have always been great boosters for live stock and will
continue to back our correspondents with every dollar at
our command to enable them to keep breeding stock on
ranch and farm.”

Cedar Rapids National Elects Officers.
Several changes were made in the official staff of
the Cedar Rapids National Bank, Cedar Rapids, at a
meeting of the directors held recently. Karl H. Rehnberg and George F. Miller were made vice presidents,
Charles C. Kuning was advanced from assistant cash­
ier to cashier, and Bertha M. W o lf elected assistant
cashier.
Mr. Kuning is an experienced banker, having be­
gun his career in 1902 in the John R. W alsh Bank, the
old Chicago National, and after its liquidation went
to the Commercial National of Chicago and worked
with that institution through all its consolidations un­
til 1912, when he came to Cedar Rapids, and joined
the force of the Cedar Rapids National Batik.

Statement of Hutchinson Bank.
The Central State Bank, Hutchinson, Kansas, is­
sued a statement recently showing resources of $1,171,552.33, and deposits of $629,353.85. The bank
has a capital stock of $500,000 and a surplus of $20,000.

SOUTHERN CALIFORNIA BANKS
If interested in b u t unfam iliar w ith California c u s ­
tom s, send for m y folder “ Banking in C alifornia.”
Free upon request.

B. R. BRUNDAGE, 304 Van Nuys Bldg., Los Angeles

WATERLOO BANK & TRUST CO.
WATERLOO, IO W A

Capital and S u rp lu s $250,000.00
BEN J. HOWREY. President
J. W . ARBUCKLE, Vice President
D. S. RAMAGE, Cashier
H. M. HOWREY. Asst Cashier
A. K. SMITH. Asst. Cashier
E. H. WYANT, Secretary

JESS R . C R A W FO R D
Vice President of the Company and
Salesman in Western Iowa

Special atten tion given to floating F arm Loans
for Banks. W e solicit your account
M E M B E R OF FEDERAL RESERVE SYSTE M

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Federal Reserve Bank of St. Louis

October, 1920

THE

J. J. FLANAGAN, Pres.
C. E. MILLS, Cashier

M oth

N ORTH W ESTERN

J. S. BANGS, Vice Pres.
H. C. LIBBY, Asst. Cashier

BANKER

•

JAY E. MARKLE, Vice Pres.
F. A. BIRCH, Asst. Cashier
J. C. KOHL, Asst. Cashier.

§?arbs Rational pank
^ » o u t fj s > t . ¡P a u l, J t lin n .

W h a t A b o u t the Future fo r L iv e Stock?
TO,THE BANKERS OF THE NORTHWEST:
There is no denying the seriousness of the live stock
situation.
Cattlemen have b e e n feeling the tightening of
credit and are wondering h o w far they will be forced to
liquidate.
As pioneers in live stock development in the northwest
we have been instrumental in getting hundreds of farmers,
ranchers and bankers into stock raising. We do not propose
to have our customers forced out of the business.
While wide liquidation in all industries is absolutely
necessary, in live stock it must include only mature and
non-produtive animals. Every mature steer, every dry cow,
all old ewes, dry ewes, wethers and wether lambs and
mature hogs should come to market this fall without fail.
All poor quality stuff should go.
By all means cattlemen must keep breeding stock and
y o u ng stock of quality, if they have feed and proper
facilities to safeguard their live stock throughout the
season. To force such animals to market would work
irreparable harm to individuals and to the entire Northwest.
The nation recovering from a wild spree of over-infl a ­
tion recognizes that it cannot apply too sudden and drastic
a remedy to an essential industry without severe damage to
everybody.
Cattle raising is an essential industry and
will receive ample support.
We have always b e e n great boosters for live stock and
will continue to b a c k our correspondents with every dollar
at our command to enable them to keep breeding stock on
ranch and farm.

R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g tc ou r a d v ertisers.


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Federal Reserve Bank of St. Louis

51

52

THE

N O RTH W ESTERN

BANKER

October, 192C

Des Moines Banks Merge. •

A n a ly zin g In vestm en ts

The Commercial Savings Bank and the American
Trust and Savings Bank, of Des Moines, have merged.
The combined institutions will use the building now

Our Bond Department
in charge o f Mr. D. J. M etcalf, is constantly
engaged in analyzing securities, so that in ­
vestors can command accurate and impar­
tial inform ation regarding investments at
all times.
Our services along this line are at the dis­
posal o f country hanks desiring to render a
similar service to their customers.

r

-

-------------------------------------- .

--11

DES MOINES. IO W A
E. B. W ILSO N , President

CEN TRAL
ST A T E
BANK

JOHN EL L IO T T

occupied by the Commercial Savings Bank at 501 Locust
street. It will have a capital stock of $200,000, surplus
of $35,000 and resources of more than $4,000,000.

DES MOINES

Capital and Surplus $ 5 0 0 ,0 0 0

O ur facilities are excellent—
W e handle out-of-town business
promptly
W e want to serve you

SIMON CASADY, Chairman o f the Board
GRANT McPHERRIN, Pres.
JOHN B. McDOUGAL, Vice Prea.
LELAND WINDSOR, Cashier
FRANK C. ASH. Ass’ t Cashier
JOHN W. HAWK Ass’ t Cashier

CLYDE

FR AZIER

John Griffin, former sheriff, who has been president of
the American Trust and Savings Bank, will be a director

R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers.


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Federal Reserve Bank of St. Louis

October, 1920

THE

N ORTH W ESTERN

BANKER

Success to You,
A . B. A . !
If our well-wishes can be made to count for anything, then this,
your 4 6 th Annual Convention, will surely stand out as the biggest
and best convention you have ever had.
W e have an extraordinary interest in your affairs and your welfare,
because you have complimented us as an institution in selecting
Richard S. Hawes, Senior Vice-President of this hank, as the Pres­
ident of your Association for the past year.
So, more power to you, A . B . A .

W e wish for you many years of

sound, progressive achievement— from which w ill follow the kind
of success that w ill meet your own ideas of what is right and good.

FIRST NATIONAL BANK
IN S T . LOUIS,

C apital and Surplus
T ota l R esources

$ 1 5 ,0 0 0 ,0 0 0 .0 0
$ 1 7 0 ,0 0 0 ,0 0 0 .0 0

R ea d ers w ill c o n fe r a fa v o r b y m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers.


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Federal Reserve Bank of St. Louis

53

54

THE

NORTHW

First National Bank

STERN

BANKER

October, 1920

in the new institution, but will retire from active manage­
ment. The officers will be:
John Elliott, president Commercial Savings Bank, pres­
ident; Clyde Frazier, cashier Commercial Savings Bank,

Burlington, Iowa

Capital, Surplus and Profits
Resources

-

-

-

$450,000
$3,500,000

P

Q U IP P E D to handie business o f
Banks and Bankers in
Southeastern Iowa.
Correspondence So­
licited.
O F F IC E R S

E. P. Eastman, Chairman Executive Committee
Charles E. Perkins, President and Chairman of the Board
Wm, P. Poster, Vice President.

M. C. Stelle, Vice President.
L. O. Wallbridge, Vice President.

P. H. Augsburger, Cashier
Milton R. Brooks. Assistant Cashier.
C. D. Rich, Assistant Cashier.

The
United State Bank

vice president and cashier; Claude Nichols, American
Tr'ust and Savings Bank, vice president; E. L. Davis, as­
sistant cashier.
The active vice presidents will continue to be A. L.
Hager and F. C. Waterbury. The directors of the
new bank will be John F. Griffin, former president of
the American Trust & Savings Bank; Johnson Brig­
ham, state librarian ; Ed Raymond, manufacturer,
and E. G. Lynn, physician.

Des Moines

N ow open for business with a capital
o f $200,000 and surplus o f $50,000,
under strong management, and will
specialize along agricultural banking
lines.

W R IT E US

R ea d ers will c o n fe r a fa v o r b y m en tionin g T H E N O R T H W E S T E R N B A N N E R w h en w ritin g to ou r a d vertisers.


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Federal Reserve Bank of St. Louis

THE

October, 1920

JAMES M . BURCH
Vice-President

J. K . DEMING
President

N O RTH W ESTERN

HERMANN ESCHEN
Cashier

BANKER

55

THE

M ERCH ANTS
NATIONAL BANK
THE

SECOND NATIONAL BANK

CEDAR RAPIDS, IO W A

AND

DUBUQUE SAVINGS BANK

R esources $16,000,000.00

D U B U Q U E , IO W A
O R G A N IZ E D 1 8 7 6

OFFICERS AND DIRECTORS
J. K . DEMING
President
JAMES M . BURCH
V . P. Farley & Loetscher
M fg. Co.

HERMANN ESCHEN
Cashier
J. T . CARR
Secy-Treas. Carr, Ryder &
Adam s Co.

CHAS. H . BRADLEY
Bradley Bros.

GEO. W . KIESEL
Hurd, Lenehäri & Kiesel

FRANK BELL
Capitalist

J. J. ROSHEK
Roshek Bros. Co.

Reserve Agents for National Banks
United States Depositary

Combined R esources - - $3,000,000.00

OFFICERS
JOHN T . H A M IL T O N . Chairman
J. M . D IN W ID D IE . President

E D W IN H. F U R R O W . Cashier

JAM ES E. H A M IL T O N . V . P.

H. N . BOYSON. Asst. Cashier

P. C . F R IC K . V . P.

R O Y C. FOLSOM . Asst. Cashier

ROBERT PALM ER. V. P.

M A R K J. M Y E R S , Asst. Cashier

R O B E R T S. S IN C L A IR . V . P.

F R E D A. G R O E L T Z. Asst. Cashier

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

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.

O F F IC E R S

G. E . M a c K in n o n
P re s id e n t
H . F . G ro ss
V ic e P re s id e n t
G eo. Li. R o w e
C a sh ie r
N. B. S c o le s
A s s t . C a s h ie r
H a rp er G ordon
A s s t . C a sh ie r

Correspondence
from
Iowa banks and bankers
receives the personal at­
tention of interested offi­
cers.
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.

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

Mechanics Savings Bank
of Des Moines

Built on the Basis o f
Service
The Muscatine State Bank has to offer out of town
banks the co-operation of a bank built upon the basis
of service—
This bank has a personal interest in each one of its
correspondent banks and because of its complete bank­
ing facilities is able to give— individual service to indi­
vidual bankers.

MUSCATINE STATE BANK
MUSCATINE, IOWA

R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers.


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Federal Reserve Bank of St. Louis

56

THE

N O RTH W ESTERN

BANKER

October, 1920

Bankers’ Exchange Instrumental in Merger.
ESTABLISHED 1872

R . 'A . CRAWFORD
President
C . T . COLE, JR.
Vice-President
D. S . CHAMBERLAIN
Vice-President
W . E. BARRETT
Cashier
JOHN H. GINSBERG
Asst. Cashier

The consolidation of the American Trust & Savings
Bank officered by J. F. Griffin, J. J. O ’Malley, and
Claude E. Nichols, with the Commercial Savings
Bank, of Des Moines, was brought about through the
instrumentality of The Bankers’ Exchange, Inc. Mr.
Nichols goes, to the Commercial Savings, which is the
name of the new consolidated institution, as active
vice president.

C . M. CORNWELL
A sst. Cashier

State Bank of Red Cloud Changes Hands.

New
and
Modern
Home
of the
VALLEY NATIONAL BANK

The State Bank of Red Cloud, Nebraska, commonly
known as the Auld Bank was purchased by J. W .
Scott, of Kensington, Kansas, who has already as­
sumed management thereof. The extensive individual
interests of J. W . Auld requiring his personal atten­
tion prompted him to dispose of the bank. _ The late
W . T; Auld, founder of this bank, was raised at
Knoxville, Iowa, and a few years ago presented the
city of Knoxville with a beautiful park. This' sale
was negotiated by The Charles E. W alters Company
of Omaha.

and

Spends Five Weeks on Deer Island.

VALLEY SAVINGS BANK
DES MOINES. IOWA
Com bined Capital and Surplus, $875,000.00
A n x io u s to serve, Equipped to serve w e ll—
W e seek the opportunity.

H. C. Gates, cashier of The Ladora Savings Bank,
who for the past five weeks has been vacationing on
Deer Island, Rainy Lake, Minnesota, has returned
home, and is so busy with fish stories that he has little
time to attend to business. .

Moderwell Goes to California.

W aterloo Savings Bank
WATERLOO, IOWA.

CAPITAL................................ $ 100,000.00
SURPLUS AND PROFITS.. . . . 100,000.00
DEPOSITS............................. .. 1,950,000.00
This Strong Bank Offers Every
Facility for Satisfactorily
Handling Your Business.

A. W . Moderwell has resigned as assistant cashier
of The Ladora Savings Bank, and he and Mrs. Moder­
well started October 1 for a motor trip'to California,
where they expect to spend the winter, coming back
to Colorado next spring, where they may make their
future home.

Y o u r H o te l

O F F IC E R S
W . C . L o g a n , P re sid e n t
E . L . J o h n so n . V ic e P r e s .
J. J . M ille r. C a sh ie r
C a rle to n S la s. V ic e P r e s .
V . L . B a r tlln g . A s s t . C a sh .

Bankers will find this hotel ready and willing to serve
them. Send your mail In our care. Fine rooms—
moderate rates.

Hotel Balling all
R. S. MANN, Manager

OTTUM W A, IOWA

“TH E BA N K E R S’ B A N K ”
Here is a bank for banks and bankers— a strong financial organiza­
tion backed'by a half million dollars in capital, surplus and undi­
vided profits. Our Service to correspondents is prompt and pains­
taking.

IOWA NATIONAL BANK
DAVENPORT, IOWA
CHAS. SHULER, President
FRANK B. YETTER, Vice President
LOUIS G. BEIN, Cashier
W M . H. GEHRMANN, Vice President
HERMAN STAAK, Asst. Cashier


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Federal Reserve Bank of St. Louis

THE

October, 1920

N ORTH W ESTERN

57

BANKER

C apital a n d S u rp lu s $700,000
'

W . P. MANLEY, President

A . B. DARLING, V ice President
V. C. BONESTEEL, V ice President

L. R . MANLEY, Cashier
R. E. BROWN, A s s ’ t Cashier
Founded 1884

PEOPLES TRUST & SAVINGS BANK
E stab lish ed 1893

CLINTON, IO W A

CAPITAL, $300,000.00

SURPLUS, ALL EARNED, $300,000.00

DEPOSITS, $5,200,000.00

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.

COMMERCIAL—SAVINGS—SAFE DEPOS1TS-TRUST
A ccou n ts fro m banks in its territory, and collections receive th e special
atten tion o f an officer o f th e bank

W . W . COOK
President

C. F. ALDEN
V ice President
C. S . HARRIS and W . S. GARDNER, A ssistan t Cashiers

MERCHANTS

N A TIO N A L

P U P I uun-rmu

Capital, Surplus and Profits
Deposits
-

IOWA —

-

-

"

J. L. BOHNSON
Cashier

BANK
...

= i j

$ 204,114.51
$1,804,478.51

J. L. E D W A R D S , President
JAM ES M O IR , Vice-President
A L E X M O IR , Vice-President
G. S. T R A C Y , Vice-President
F. L. H O U K E , Vice-President
C. L. F U L T O N . Vice-President
E. W . W IC H H A R T , Cashier
C. A. D A N IE L S , Ass’t Cashier
A. A. W 1X L E M , A ss’t Cashier
D IR E C T O R S : James Moir, G. S. Tracy, W . C. T u bbs, Alex. Moir, J. L. W aite, J. L. Edwards.

W E INVITE YOUR BANKING BUSINESS

Leavitt & Johnson National Bank
Established 1856

Waterloo, Iowa
IRA R O D A M A R , President
C. E . P IC K E T T , Vice President
J. O . TR U M B A U E R , Vice Pres.
FR E D H . W R A Y , Cashier

63rd Year


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Federal Reserve Bank of St. Louis

Capital, Surplus and Profits $300,000.00

THE

58

N ORTH W ESTERN

BANKER

October, 1920

South Dakota Bankers A ss’n
E X E C U T I V E C O U N C IL .

P r e s id e n t .J o h n W . W a d d e n , S io u x P a lls , P re s . S io u x P a lls N atl. B a n k
V ic e P r e s id e n t ................M. P lin B e eb e, I p s w ic h , P re s . B a n k o f I p s w ic h
S e c r e t a r y ...........................
.................................................L, J. W e lc h , M itc h e ll
T r e a s u r e r . . .Li. T. M o rr is , W a t e r t o w n V ic e P re s . C itiz e n s N atl. B a n k
G ro u p N o. 1— D. M. F in n e g a n .
V ic e P r e s id e n t F ir s t N a tio n a l B a n k ............................................... .. . Y a n k t o n
G r o u p N o. 2— H. L . M e rr ic k .
C a sh ie r F i r s t N a tio n a l B a n k ............................... ................. .......................... S alem
G ro u p N o. 3— F . B . S tiles.
C a sh ie r F ir s t N a tio n a l B a n k ..............................................................W a te r t o w n
G ro u p N o. 4— J. W . B r y a n t.
V ic e P r e s id e n t C o m m e r cia l T r u s t & S a v in g s B a n k o f M it c h e ll.M it c h e ll
G r o u p N o. 5— G. A . L in d q u is t.
C a sh ie r L a n g f o r d S ta te B a n k ................................................................. L a n g f o r d
G r o u p N o. 6— F . D. G reen e.
P r e s id e n t F i r s t N a tio n a l B a n k ...............................
M ille r
G r o u p s N os. 7 a n d 8— A . K . T h o m a s.
C a sh ie r F ir s t N a tio n a l B a n k . . . .................... ...................................R a p id C ity
G ro u p N o. 9— J. D. F a r g o .
V ic e P re s id e n t R e d fle ld N a tio n a l B a n k ...................... ........................ R e d fle ld
G ro u p N o. 10— T h o m a s O’ B rien .
P re s id e n t H o v e n S ta te B a n k ..........................................................................H o v e n
G ro u p N o. 11— F e r d T e rh a a r .
C a sh ie r B a n k o f H e r r i c k .....................................
H e r r ic k
G ro u p N o. 12— C C. S id eriu s.
P r e s id e n t L e m m o n S ta te B a n k ........... ............•«..................................... L e m m o n

GROUP ONE.

P re s id e n t
S e c r e ta r y

............................. E . R . H e a to n , Y a n k t o n
...........................*,.W . O. N elson , Y a n k t o n
V ic e P re sid e n ts.

B on H om m e
C h a rle s M ix .
C la y ................
D o u g l a s .........
H u tc h in s o n
Y a n k t o n .. . .

•Wm. T h o m p s o n ........................
.T y n d a ll
F . R . S m it h ............................
P la t te
G e o r g e B r o s iu s ............................V e r m ilio n
A . M. S h a w ......................................... D e lm o n t
F. E . J a c k s o n .......................................H u r le y
E i n e r J o h n s o n ......................................... V o lin
GROUP T W O .

P r e s id e n t ...............................................T h o m a s A . W a d d e n , M a d ison
S e c r e t a r y a n d T r e a s u r e r ............ , . . . . H . D. M itc h e ll, M a d iso n
V ic e P re sid e n ts.

L a k e ...................... ......... A. J. H a r r i n g t o n ...
M o o d y ..................
L i n c o l n ........... ....
M c C o o k ................ .........W*. T. A p p e l ...............
M in n e h a h a .........
U n io n ....................

G R O U P S IX .

P re s id e n t
S e c r e ta r y

........................................... C. L . M ille tte , F o r t P ie r r e
............................... ; ............... C. H . D r e w , H ig h m o r e

H and. . .
H yde...
H aakon
H u gh es.
S ta n le y .
S u lly ...

..............J. O. G a g e .........
. . . . . . .E . A . S c h e n k . . .
. . . . . . N one.
........... J . R . M c K n ig h t
..............N one.
............. N one.

P re s id e n t
S e c r e ta r y

...........................................A . K . T h o m a s, R a p id C ity
................................................. F . M. C la ry , F r u itd a le

V ic e P re s id e n ts .

R e e H e ig h t s

.. .Highmore
. . . . . . .P ie r r e

GROUPS S E V E N A N D E IG H T .

V ic e P re s id e n ts .

B u t t e .............
C u s t e r .. . . . . .
F a ll R i v e r .
L aw rence...
M e a d e ...........
P e n n in g t o n .
S h a n n on
W a s h in g to n

, .D. R . E v e n s . . . .
.T. W . D e le c a t e ..
. C. A . S t e w a r t .. .
.B urt R o g e r s . . .
.J. A . P o z n a n s k y
•G. A . B a i l e y . . . .
.None.
. N one.

...B e ll F ou rch e
..................... C u ster
. . . .H o t S p rin g s
........... D e a d w o o d
................... S tu r g is
N ew U n d erw ood

G R O U P N IN E .

GROUP T H R E E .
P r e s id e n t ............. ...............................................E. R . Z a le s k y , E lk t o n
S e c r e t a r y .............
A u s tin , W a te r t o w n
V ic e P re s id e n ts .
B r o o k i n g s ........... ......... E. L. G r a p e .................
D u e ll ....................
H a m l i n ...............
C o d in g t o n ...........
C l a r k ........... ..

P re s id e n t
S e c r e ta r y

V ic e P re s id e n ts .

B e a d le .............................
K in g s b u r y ..............
M in e r ...............................
S p in k ...............................

.Cam den R a y b u r n ................................ H u ro n
H . I. O ls t o n ........... ................. L a k e P r e s to n
H. S. S t r a u p ......................
C a r th a g e
•A. E . M c M illa n ......... ...................
.C o n d e

P re s id e n t
S e c r e ta r y

.................... .. ..............C. C. A d a m s , L o y a lt o n
. . . . ' ........................... .O. A . O lson , M o b r id g e

GROUP T E N .

GROUP FOUR.

P r e s i d e n t . . . .............................. W . W r ig h t , W e s s in g t o n S p rin g s
V ice P r e s id e n t ...................................................W . C. B o tk in , L e tc h e r
S e c r e ta r y a n d T r e a s u r e r .................. . . . . ............................ C. L. P in e
V ic e P re sid e n ts.

A u r o r a . ...........................J. E . B a c h m o r e .. . . . . . . . . . . . . .S t ic k n e y
B r u le ........... ..................... H. A . S c h o e n b e r g e r . . . . . . . . . . . K im b a ll
B u f f a l o . . . .......................W . M. S e d g w i c k . . . ................ G a n n V a lle y
D a v i s o n ................... . . . M . E . H e l g e r s e n ...................... M t. V e r n o n
S a n b o r n .......................... W . H. W il l i a m s ......................... W o o n s o c k e t
H a n s o n ........................... T. C. W o o d ...................................... A le x a n d r ia
J e r a u l d ............................E d L in d e b a k ...........................................L a n e
GROUP F IV E .

P r e s id e n t ...................................... ................... .A . K o p p e r u d , W e b s t e r
S e c r e t a r y ................................................. ................... C. M ö g e n , W a u b a y

V ic e P re s id e n ts .

C a m p b e ll........... .............J. J.
E d m u n d s ........................ .H . C.
F a u l k . . . . . .................. .J o h n
M c P h e r s o n ..................
P.
P o t t e r ................................ J. B.
W a l w o r t h ........................B. F .


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Federal Reserve Bank of St. Louis

F e n e lo n .. . .
G r o s s .............
D ix o n ...........
S c h a m b e r ..
G u n d e r t ....
H o lle n b e c k

.P o l l o c k
. .B o w d le
. .S e n e c a
. .E u r e k a
. .T o ls t o y
G len h a m

GROUP E L E V E N .

P r e s id e n t ....... .............................. ...................................L . V ish a , D a lla s
S e c r e t a r y . . . ...........................; .......................... G. F . T o p h e id , D a lla s
V ic e P re s id e n ts .

G r e g o r y ............. ........... G. J. C r i ll e y ............................
L y m a n ................
M e lle t t e ..............
.W h it e R iy e r
T r i p p . ..................
GROUP T W E L V E .

P r e s id e n t ...........
S e c r e t a r y ...........

V ic e P re sid e n ts.

R o b e r t s ...........................A. F . E r t s g a a r d .. . . . . . . . . . . . . .S isse to n *
D a y .......................................J. S ch a d ............................................. . . R o s l y n
G r a n t ..................................F. B o e r g e r ....................
M ilb a n k
B r o w n .................................C. J. M e y e r s .-................................... A b e r d e e n
M a r s h a l l . . ....................... F. R . H a r d i n g ........................ . . . . . L a n g f o r d

............................ . . D . C. B r o w n , R e d fle ld
................................. P. L . B r o w n , D o la n d

V ic e P re s id e n ts .

C o r s o n ...............
D e w e y .................
H a r d in g .............
P e r k in s ..............
Z ie b a c h ...............

THE

October, 1920

N O RTH W ESTERN

59

BANKER

SO. D A K O T A B A N K N E W S
L . J . W e lc h , A s s o c ia te E d ito r (S e c r e ta r y S ou th D a k o t a B a n k e r s A s s o c ia tio n )

T h e N o r th w e ste r n B a n k e r is th e officia l p u b lic a tio n o f th e S ou th D a k o ta B a n k e r s A s s o c ia tio n .

New Eureka Bank.

To Build New Home.

Aberdeen capital is to be interested in a new bank
to be opened in Eureka, S. D., shortly, according to
A. Kopperud, president of the Security Bank and
Trust Co., of W ebster, S. D.
A charter for the new institution has been asked
and the bank will be known as the Guarantee State
Bank, capitalized at $25,000.
The new institution will take the place of the First
National Bank, recently declared insolvent.

It has been announced that the. First National Bank,
Fairfax, S. D., is preparing to build a new home. The
building will occupy the place formerly used by the
Johnson Farm Loan Co.
The front of the building will be torn out and a
ston e. front put in. The roof will be raised several
feet. An all marble floor and fixtures will be installed.
A thoroughly modern vault will also be built.

Middlebrook Made President.

A meeting was recently held by the directors of the
Dakota National Bank organization, Yankton, S. D.,
for the purpose of selecting a president to fill the
vacancy caused by the death of the late F. C.
Danforth.
The officers of the bank under the present organ­
ization are J. A. Danforth, president; W m . J. Fantle,
vice president; C. I. Danforth, vice president; W . O.
Nelson, cashier. One director was also named, Mrs.
F. C. Danforth, to fill the vacancy in the list of
directors.

A t a meeting of the board of directors of the First
National Bank and the First National Security Co.,
Milbank, S. D., recently held, George C. Middlebrook
was elected president of the bank to succeed F. B.
Roberts, who recently disposed of his stock in the in­
stitution. W esley Swenson was elected vice president
and Frank Boerger, the cashier, was made a member
of 'the board of directors.
W esley Swenson was elected president of the First
National Security Co., in place of Mr. F. B. Roberts,
and Ben Moser was elected a member of the board of
directors in place of L. S. Bannister, who, like Mr.
Roberts, recently disposed of his stock and moved to
California.
----------------------------------

South Dakota Bank Deposits.
According to population, South Dakota stood in
twelfth place in the union in the number of deposit
accounts in all national banks on May 4, 1920. This
is shown in the statement issued by the treasury de­
partment at Washington. W yom ing stood first with
394 depositors per 1,000 of population and the other
states in order named w e re : Montana, 349; Idaho,
293; Pennsylvania, 289; Colorado, 280; Oregon, 276;
Minnesota, 71; Iowa, 262; Virginia, 2.9; Vermont,
255; California, 248; and South Dakota, 244. The
average for the entire United States was 190 deposit
accounts for each thousand of population.
On July 1 South Dakota had 136 national banks in
operation, $108,000 demand deposits on account, $76,000 on time deposit and had an estimated population
of 753,897, according to the same statement.

Fill Vacancy.

Parker Banker Dies.
F. C. Danforth, for thirty years engaged in banking
and real estate business in Parker, S. D., recently died
at his summer cottage at Arnolds Park, Iowa.
He was one of the pioneer bankers of southeastern
South Dakota and for many years had been prominent
in state financial circles.

Land Bank Loans.
Loans in the state of South Dakota through the fed­
eral land bank now total $9,754,000, according to a
statement from the department at Washington. There
has been 1,898 farm loans in the state totalling $8,002,000 and the joint stock bank shows 164 members with
total loans of $1,752,000. M ost of the loans are for
35 years under the amortization plan which provides
a means of paying interest and principal in small
annual or semi-annual payments amounting to only
one per cent in excess of the rate of interest.

J O S E P H W A Y N E , J R ., P re sid e n t
E V A N R A N D O L P H , V ic e P re sid e n t
C H A R L E S M . A S H T O N , C a sh ie r
A . W . P I C K P O R D , V ic e P re sid e n t
A L F R E D B A R R A T T , A s s is t a n t C a sh ie r
D A V I D J . M Y E R S , A s s is t a n t C a sh ie r

The Girard National Bank
P H I L A D E L P H I A , PA .

Capital, $2,000,000

Surplus and Profits, $7,030,000

Deposits, $65,000,000

A C C O U N T S OF BANKS A N D BANKERS SOLICITED
“ T o Handle Your Business Satisfactorily, You Need a Philadelphia Account”

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Federal Reserve Bank of St. Louis

60

THE

N O RTH W ESTERN

BANKER

October, 1920

Plan New Building.

Security National Bank
Sioux Falls, S. D.

The Tripp State Bank, Tripp, S. D., is building a
new bank building at a cost of about $40,000, which
will be occupied by the bank about December first.
1920.
The building is 40x90 feet, two story, brick. The
vault is one of the best in the state, constructed of con­
crete re-inforced- with railroad rails.
The bank has grown in the last four years from
$150,000 deposits to over half a million in deposits.
Its officers are as follow s: W . W enzlaff, president;
E. L. Sailer, vice president; A. E. Raebel, cashier; E.
R. Sailer,' assistant cashier.

Canada As a Field for Investment.
A

B a n k f o r B a n k e rs in

“ Canada as a Field for Investment” is the title of
an interesting booklet just issued by W ood, Gundy
& Company, 14 W all Street, New York, outlining
the resources of the Dominion and giving interesting
data regarding the Provinces and cities offering op­
portunities for investment. Contained within the
booklet are also complete statistics pertaining to the
war and Victory Loan bonds of the Dominion.

O u r T e r r it o r y

Resources Over $7,000,000.00
O F F IC E R S :
W. Z. Sharp, President
D. O. Lowe, Assistant Cashier
John Barton, Vice President
George B. McMahon, Asst. Cashier
D. A. McCullough, Vice President
J. V. Lowe, Assistant Cashier
Jas. B. Lambertson, Cashier
Oliver A. Bray, Assistant Cashier
F. W. Koneman, Manager Farm Loan Dept.

NEWS PRINTING CO., Inc.
ABERDEEN, S. D.
Stationers, Complete Bank and Office
Supplies, Printers, Legal Blanks,
Blank Book Makers.
We Carry the DeLuxe Line Posting
Machine Supplies.
Selling Agents for
Herrtng-Hall-Marvin Safe Company’ s Products
Mail orders will have prompt and careful attention.

Federal Reserve Situation.
There is a full fledged war on between the federal
reserve bank and the state banks of South Dakota,
according to I. J. McGinity, of Lebanon, S. D:, dis­
trict secretary of the National and State Bankers’
Protective Association, who has given out the fol­
lowing statements of the case from the viewpoint of
the state banks:
Beginning August 20, the state banks of South Da­
kota quite generally discontinued to par for the Fed­
eral Reserve bank which is now adopting a method
to force the state banks into line by presenting their
checks through the local express office and returning
them to the makers marked “ payment refused.” This
is the latest method of coercion adopted by the Fed­
eral Bank.
W hen the banks were ordered on the par list Feb­
ruary 1st, banks that refused had their checks pre­
sented at the counter and cash demanded. Checks ac­
cumulated by the Federal Reserve Bank until their
amount exceeded the cash on hand of the bank and
were then presented. If payment was refused they
were protested. The only thing a bank could do,

W E B U Y and SELL B A N K S
(C orrespondence Invited)

O. A. KRUSE & COM PANY
(Incorporated)

S tock s and B on ds
Foreign Securities
SIOUX FALLS, SOUTH DAKOTA
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Federal Reserve Bank of St. Louis

October, 1920

THE

N ORTH W ESTERN

therefore, was to agree to remit to the Federal Reserve
Bank at par. A t Pierce, Neb., they sent two men
armed with revolvers, one of the men was a United
States marshal, and presented $13,900 in checks, some
of which had been held there weeks, and demanded
payment in cash. W ith such methods they'terrorized
state banks into submission.
The socalled “ par clearance” is not, however, the
only feature of the Federal clearance system to which
the country banker objects. He is opposed to. their
system of deferred credits passing through the Federal
Reserve Bank according to the amount of the check
and number of days required for its collection, a charge
for the “ float” as they call it.
There is, therefore, no such thing as “ par clearance”
of checks. The public is deceived. Their much her­
alded “ par system” is a misomer— it is a fraud. They
have simply cut the country banker out of his ex­
change but they are still discounting checks under the
name of “ float” and services charges but keeping the
discount themselves.
The activities of the Federal Reserve Board have
aroused the class consciousness of the qountry banker,
particularly the state banker. These bankers are not
opposed to the Federal Reserve System itself but to
its management. They believe it is a valuable system
poorly administered. In the larger affairs its Board
has drifted with the tide until the system has become
“ waterlogged.” In other matters they have been as
busy as an old hen in her neighbor’s garden. It is
indeed questionable whether so much power for good
or evil should be centered in one board of five men.

South Dakota News and Notes.
Leo A. Traver has purchased the controlling interest
in the Farmers Security Bank, Seneca, S. D., and will
give the business his personal attention.
D.
J. Stribley, assistant cashier of the W inner State
Bank, W inner, S. D., has returned from a two weeks’
visit spent in Dubuque and Des Moines, Iowa.
The Lemmon State Bank, Lemmon, S. D., has a
new addition to its already attractive front. It is a
copper screen on which the name of the bank appears
in copper letters.
Deputy State Superintendent of Banks, McEwen,
recently died at the Rochester, Minn., hospital, where
he had gone to submit to an operation. However,
he succumbed before the operation was performed.
The First National Bank building, Rapid City, S.

BANKER

TEN THOUSAND

Volunteers W anted!
If the bankers of the United States can convincingly
show Congress and the Federal Reserve Banks that
they are overwhelmingly opposed to the universal
par clearance ruling, the right of a bank to charge
exchange will be respected.
There is one way, and only one way, to present this
evidence. That is for every banker who believes in
the equity of exchange, to become a member of The
National and State Bankers Protective Association.

Congress Respects the M ajority!
W e must make Congress realize the fact that over
twenty thousand banks in the United States are op­
posed to the parring of checks.
Every banker who , is with us in his convictions, must
be with us in reality. Otherwise, our opponents will
claim him as one of them.
W hen Congress convenes in December, one of the
first problems before it for solution is this par clear­
ance question. Leading the fight for exchange will
be. this organization.
Uphold our hands by giving us .the right to speak for
you and list you as one of us.

Write today for full particulars as to membership, to
L. R . A D A M S , General Secretary-Treasurer

The National and State Bankers Protective Ass’n
P. O . Box 1515, A tla n ta , G a.

T he 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

Filing D e v ic e s— V a u lt Fixtures
W o o d or Steel
When you want filing cabinets that work with an ease of perfection
insist upon the Y & E line.
The wooden cabinets are made to work perfectly in all climates.
The steel are of double fire wall construction with patent self locking
drawers.
.
Write for catalogs

WILL A. BEACH PRINTING COMPANY
SIOUX FALLS

Phillips Ave. at 7th St.
■
SOUTH DAKOTA

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Federal Reserve Bank of St. Louis

61

THE

62

N O RTH W ESTERN

Have Confidence
in Live Stock
Inflation of credit, drouths, strikes and car short­
age have each added to the problems of banks
and their stockgrowers.
But this bank has helped customers solve prob­
lems as intricate as these ere this. It can do it
again.
In advising customers during this critical period,
shouldn’t you in turn have the backing which this
strong, live stock bank— located at the buying
and selling point— is in position to give?

The Live Stoek National Bank
AND

Sioux City Cattle Loan Co.

BANKER

October, 1920

D., has been undergoing a thorough renovation and
has been redecorated.
Lawrence Borsvold, who has been assistant cashier
in the Farmers State Bank of Bruce, S. D., has gone
to Ihlen, Minn., where he and his brother have recent­
ly purchased the Ihlen State Bank.
The total deposits of the Pennington County Bank,
Rapid City, S. D., have reached $1,823,890.59, which
is certainly a most excellent showing.
The deposits of the James Valley Bank, Huron, S.
D., according to the latest statement issued, are' $1,779,948.57. The officers of this institution are as fol­
lows : R. E. Cone, president; C. H. Bonestell, vice
president; C. C. Smith, cashier.
The deposits of the Citizens State Bank of Colman,
S. D., have reached the $329,351.85 mark.
In an attractive statement recently issued the total
deposits of the First National Bank of Colman, S. D.,
are stated as being $446,537.52.
New State Bank.
The banking department has authorized the Guarantee
State Bank to begin business at Eureka, S. D., and to take
the place of the First National Bank, which failed in that
place several weeks ago.
Among the officials of the new bank is Fred Hepperlee,
who was for four years at the head of the state land de­
partment.

“ Located at the Stock Yards”
S IO U X C IT Y , IO W A

THE BAN K ERS HOTEL

Hotel
onapp

Our fam ou s M ineral W a ters
prescribed b y physicians.
L ocated n earer a ll th e fa m ous m ineral sp rin gs and
places o f am usem ent than any
oth er la rg e hotel.

Excelsior Sprints, Mo.

ABSOLUTELY
FIRE-PROOF
W h e re
Hospitality
Reigns Supreme
A home for
your mother, wife
and daughter.

O perated on the A m erican Plan
R ates from $4.00 to $6.00 per
day. A m erican plan.
W rite f o r b o o k le t
Reservations by wire or mail w ill
have our immediate attention.

New Pilgrim Half Dollars.
The directors of the mint Will issue, about October 1st,
the new Pilgrim memorial coins which are to commenorate the tercentenary of the landing of the Pilgrims at
Plymouth, Mass. The coins will be known as the “ Pil­
grim" half dollars” and will bear upon one side the head
of a typical Pilgrim, to be designated “ Governor Brad­
ford,” and, on the reverse side, a view of the ship, May­
flower, under full sail.
The National Shawmut Bank, of Boston, has been
designated as the distributing agent for the coins and
will furnish them to banks throughout the country. Per­
sons desiring to procure these coins should make applica­
tion to their local bank.
The price of the coins has been fixed at $1 each. It
is intended that any balance left over, after deducting the
cost of dies, minting charges, etc., will be turned over to
the Pilgrim Tercentenary Commission, which commission
is the official state body having in charge the improve­
ment of Plymouth Harbor and permanent memorials at
Plymouth.

GROTH-HOSTETLER GO.
Complete Bank and Office Equipment
Sioux Falls

South D akota

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Federal Reserve Bank of St. Louis

October, 1920

THE

N ORTH W ESTERN

BANKER-FARMER CO-OPERATION IS BIG
SUBJECT AT A. B. A. CONVENTION.
(Continued from page 15.)
together with leading representatives from banks all over
the country.

Advertising Conference.
This year liberal attention is being given to the adver­
tising side of banking. Fred Ellsworth, former president
of the Financial A dvertises’ Association, is scheduled
for an address, “ Public Relations in B a n k i n g t h e public
relations committee will exhibit association publicity and
a special bank advertising conference has been called for
Tuesday night. The conference will be under the joint
auspices of the public relations committee of the Amer­
ican Bankers’ Association and the Financial Advertisers’
Association. An exhibit of model bank advertising ar­
ranged by the Financial Advertisers’ Association will be
displayed in the registration room of the New Willard.
This exhibit is pronounced the most wonderful collec­
tion of bank advertising campaigns, special booklets,
brochures yet collected.

BANKER

63

W E SOLICIT

Black Hills Business
We claim that we have no dissatisfied client
to whom we sell

Real Estate Loans
Our Loans Are All Located
in the Famous

On Educational Affairs.
An educational conference is announced by R. O.
Kaufman, chairman o f the educational committee of the
American Bankers’ Association. Through this "educa­
tional conference, the committee expects to secure an
exchange of ideas, with the hope of stimulating the in­
terest of bankers all over the country in this work.
A call has been sent out by A. T. Matthews, secretary
o f the clearing house section, for a general conference on
clearing house problems, to be held on Tuesday and
Wednesday at 3 p. m. at the Washington „Hotel.

BLACK HILLS COUNTRY
W rite Us for Particulars

Secu rity Savings Bank
H A R R Y W E N T Z Y , President

Rapid City, South Dakota

The Main Sessions.
It is expected that the executive council will hold a
meeting some time Sunday. Monday will be entirely de­
voted to committee meetings, the general sessions open­
ing Tuesday morning.
Among the addresses scheduled for the opening ses­
sion are: “ Agriculture and the Banker,” Hon. E. T.
Meredith, secretary of agriculture; “ Transportation and
Its Effect on Credit,” J. J. Pulleyn, president Immigrant
pf the federal reserve board may also be in attendance,
Industrial Savings Bank, director of the New York Life
Insurance Company and an active member of the Rail­
ways Securities Owners’ Association.
Entertainment features for the delegates have been
planned on every day. The affairs for Tuesday are: 3
p. m., automobile ride through Rock Creek Park and
lawn party at Chevy Chase Club. 8 p. m., lecture at the
United States Bureau of Standards by Prof. S. W .
Stratton, director; inspection of buildings and exhibits;

U. S. Capitol
Washington, D. C..

Sioux Falls Savings
Bank

State Ciu>itol,
Pierre, S. D.

Linked up with the strongest financial insti­
tutions on earth. We offer the best of service
to banks and bankers in the Northwest.

SIOUX FALLS SAVINGS BANK
Sioux Falls, So. Dak.
(Cataract Corner)
Capital and Surplus $350,000.00

CHAS. L. NICHOLSON, President

H. R. WOOD, Secretary

TH E IN T E R -ST A TE SURETY CO.
REDFIELD, SOUTH DAKOTA
A surety company owned and operated by South Dakota people for the convenience o f its
citizens.
W e write Fidelity and Surety Bonds, Plate Glass and Bank Burglary Insurance and with our
location and familiarity with local conditions are in position to render prom pt and efficient service.
Paid Up Capital $133,700.

Surplus and Reserve $126,978.

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Federal Reserve Bank of St. Louis

THE

64

N O RTH W ESTERN

Wednesday’s Sessions.

in B anking S ervice
Dependability in banking service has always been
the one recognized important factor that is demanded
by the depositor of a bank in handling his funds and
business problems of a financial nature.
In making your banking connection it should be
done with the greatest care, and with consideration
of the record and standing of the institution which
invites your business, as well as the service it is able
to render you.
W ith a record of thirty-seven years of practical
banking, with resources of more than seventy million
dollars— we offer you a banking service that is broad
and comprehensive in its scope and especially
adapted to meet your every particular financial re­
quirement.

The Seaboard National Bank
of the City o f New York

“ Government Finances” will be the subject of Hon.
David F. Houston, secretary of the treasury, at the
Wednesday meeting of the general convention; “ Interna­
tional Relations,” Fred I. Kent, vice president of Bankers’
Trust Company; “ Publicity *and Public Relations,” F.
W . Ellsworth, retiring president of the Financial Adver­
tisers’ Association and vice president Hibernia Bank and
Trust Company, New Orleans.
The entertainment features for this day will be as fol­
lows: 2:30 p. m., special visit to the Old United States
Natural Museum, which is the depository of the national
collections. This visit must necessarily be made in the
daytime for the reason that the buildings are never il­
luminated. 9 p. m., ball, New Willard Hotel. Buffet
supper will be served. Evening dress.

Thursday’s Events,
Joseph H. Defrees, Chicago, president United States
Chamber of Commerce, will discuss “ Service Organiza­
tions.” , “ Financing and Underwriting Big Business,” Sol
Wexler, J. S. Bache & Company, New York. “ The In­
corrigible Optimist,” John Kendrick Bangs.
Entertainment : 8 p. m., smoker. To be held in the
“Arcade.” Special electric cars will be provided for
this occasion. , 8:15 p. m., theater party for the ladies
arranged at several o f the leading theaters.

Capital, Surplus and Profits over Five Million Dollars

Closing Day’s Program.

JO H N C . W O O D E N

Hansen

October, 1920

private view United States National Museum of Natural
History. 8 :30 p. m., reunion of members of the Ameri­
can Institute of Banking, New Willard Hotel.

D epen dability

H AR R Y N . H AN SEN

BANKER

W ooden

Attorneys and Counselors at Law
Suite 500 Iowa Bldg.

Des Moines, Iowa

Special Attention
Given to the Business of Banks, Bankers and Corporations

Speakers for the day: “ Commodity Financing,” H. W .
Robinson,, president First National Bank, Los Angeles,
Cal.; “ Federal Reserve Banks,” Oscar Wells, president
First National Bank, Birmingham, A la.; “ The Country
Banker’s Problems,” George Woodruff, president First
National Bank, Joliet, 111.
The entertainment provided for Friday will be as fol­
lows : 10 a. m., a golf tournament will be held at the
Chevy Chase Club. The handsome trophy known as the
St. Louis Cup will be awarded the player making the low­
est medal score, whose name will be inscribed thereon,
and who may retain possession of the cup until the next
A. B. A. convention. 2 :30 p. m., visit to Mt. Vernon by
electric car. This visit is primarily for ladies, and while
set for this particular afternoon, it may be made on any
afternoon during the convention: 3 p. m., United States
Cavalry and Artillery drill at Fort Myer, Va., under the
direction of the commandant, Col. W . C. Rivers. 8 p.
m., private view Corcoran Gallery of Art, which is just

SIOUX FALLS—
— a financial center that South Dakota can well feel proud of.

Your business routed to the

S IO U X F A L L S N A T I O N A L B A N K
assures you of appreciative treatment and you will know that your reserve is being utilized
to develop your own state.
S IO U X

FALLS’

OLDEST

BANK

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Federal Reserve Bank of St. Louis

October, 1920

THE

N O R TH W E STE R N

west of the White House and within easy walking dis­
tance of headquarters hotel. 8 p. m., visit to the PanAmerican Union Building.
State Bank Section.
State hank section meetings are expected to give a
great deal of time to the question o f par clearance. O.
Howard W olfe, cashier of the Philadelphia National
Bank, is on the program to speak on par clearance. Mr.
W olfe was a member of the federal reserve organization
committee that drew up the original plans for the opera­
tion of the check collection functions of the federal re­
serve banks. He is also author o f the gold settlement
plan.
Charles de B. Claiborne, of New Orleans, will speak
against par clearance. Mr. Claiborne is. vice president of
the Whitney-Central National Bank, of New Orleans.
He was president of the Louisiana Bankers’ Association
during the year just closed, and he is chairman of the
National and State Bankers’ Protective Association.
Savings Bank Section.
On Monday, October 18th, the opening day of the
savings bank section, an informal luncheon to all savings
bankers will be held at the Hotel Raleigh. “ Thrift and
Savings” will-be the general topic for Tuesday afternoon.
Following the report and address by S. Fred Strong,
president o f the section, and the organization of the an­
nual meeting, the section’s committee on savings will re­
port and special addresses will be delivered by those who
have had wide experience with industrial savings sys­
tems, school savings plans and personal or home eco­
nomics departments in banks. “ Savings Bank Invest­
ments” will be the special topic for the concluding ses­
sion on Thursday afternoon, with discussions on changes
in legal lists, real estate mortgage questions, desirability
o f equipment trusts and the menace of further issues of
tax-exempt securities.

BANKER

65

DAKOTA TRUST & SAVINGS BANK
Sioux Falls, South Dakota

Capital and Surplus $110,500.00
Banks and Bankers Accorded
Liberal Treatment
N . O . M O N S E R U D , President
O . A. H A Y W A R D , Vice President
T O M C O STELLO , Vice President

V . H . M A S T E R S , Cashier
CARL. G . N E L SO N , Asst. Cash.
D O N A L D C. C O T T O N , Asst. Cash

B AN K FIXTURES
SA SH DOORS
MOULDINGS
FIN E INTERIOR FINISHINGS
GRILLS
M A N TE LS
AN D STA IR W O R K
— BU ILT FO R A DISCRIM INATING TRAD E.
Exceptional Values.
W rite

JORDAN BROTHERS
SIOUX FALLS, SOUTH DAKOTA

Æ

A

Bankers Hotel

Place of Section Meetings.
Monday afternoon: Clearing House Section, Hotel
Washington; State Bank Section, Hotel Raleigh; State
Secretaries Section, New Willard Hotel.
Tuesday afternoon: Savings Bank Section, Hotel
Raleigh; Trust Company Section, Hotel Washington.
Wednesday afternoon: National Bank Section, New
Willard Hotel; State Bank Section, Hotel Raleigh; Trust
Company Section, Hotel Washington.
Thursday afternoon: National Bank Section, New
Willard Hotel; Savings Bank Section, Hotel Raleigh;
Clearing House Section, Hotel Washington.
(Continued on page 87.)

W here Comfort and Service
are Always Assured.
Have Your Mail Directed to

Brown Hotel
(.Fireproof)

Des Moines, Iowa
Ernest W . Brown
President

'Wm. F. Rick
Manager

CentrâlTrust Company

OF ILLINOIS

CHICAGO

E offer our facilities to out-of-town banks and bankers desir­
ing a complete Chicago correspondent service in domestic
and foreign banking.
Our booklet, ‘ ‘Through Bills of Lading,” mailed upon request.
CO RRESPO ND EN CE IN V IT E D

Capital and Surplus $7,000,000

Deposits $60,000,000

R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin a to ou r a d vertisers.


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Federal Reserve Bank of St. Louis

THE

66

N O RTH W ESTERN

October, 1920

BANKER

NEBRASKA B A N K N E W S
Bank Elects Assistant Cashier.

Chadron Banks Merge.

Don Severn, formerly cashier of the State Bank of
Surprise, Neb., was recently elected assistant cashier
of the Farmers State Bank, of Seward County, Seward,
Neb. Mr. Severn is an experienced banker and will
be a valuable assistant in the institution.

The Farmers & Merchants Bank of Chadron, Neb.,
has purchased the stock and building of the Chadron
State Bank and will consolidate the two institutions.
Officers of the new bank will be the same as those
of the Farmers & Merchants.
The capital stock will remain at $100,000 and the
surplus $10,000. B. L. Scovel is president, J. H.
W hite, vice president, and W . P. Rooney, cashier.

Erects New Building.
W ork has been commenced on the new building for
the Farmers State Bank at Rockville, Neb. The struc­
ture will be one story, of brick construction, covering
a space 25f4 by 46 feet, and will cost about $10,000.

Increase In Capital Stock.
An increase in the capital stock of the First Nation­
al Bank of Bancroft, Neb., has been approved by the
comptroller of the currency. The capital will be raised
from $30,000 to $50,000.

Increase Capital.
The Platte Valley State Bank of North Platte, Neb.,
has increased its capital stock from $50,000 to $100,000. The constantly grow ing business of the bank
has made it necessary to make this increase in order
to handle financial affairs in a better manner than
could be done on the former capital.

A New Bank At Caldwell.

Organize New Bank.
A new bank has been formed at Tilden, Neb., known
as the Farmers State Bank, with a capital stock of
$50,000.
Those interested are B. W hitw er, A. N. Snider,
John R. Saxton, Mel W hitwer, J. F. Jenkins, Earl L.
Jenkins, and John Lemly, who will be president of the
institution.

Peters National Bank Opens.
The Peters National Bank, Omaha, Neb., opened for
business recently. Over 2,000 people visited the bank on
the opening day. The success of the institution is as­
sured, backed a's it is by such capable and experienced o f­
ficers.^
The Peters Trust Company is located in the same build­
ing, has long been a successful institution in the invest­
ment field, and has sold over $100,000,000 worth of in­
vestments since being established, without' a loss to a
single investor.
The bank will have a capital and surplus o f $250,000.
The following are officers: R. C. Peters, chairman of the
board; M. D. Cameron, president; W . S. Weston, C. J.
Claassen and J. R. Cain, Jr., vice presidents; E. L. Lind­
quist, cashier, and R. £). Miller, assistant cashier.

Application has been made at the state banking
board for a charter for the Farmers & Merchants State
Bank, of Caldwell, Neb. The institution is to be
capitalized at $15,(300.
The officers are John Boastman, president; J. H.
Bennison, vice president and H. W . Flint, cashier.

Tri County Bankers Association Meets.
The Tri County Bankers Association held its
quarterly meeting at Newport, Neb., recently. A
banquet was served and entertainment provided by
a ten round boxing match. After the match a busi­
ness meeting was held.

Nebraska Banker Goes to Washington.
Reginald W iltse, who has been manager .of the dis­
counts and credits department of the Federal Re­
serve Bank, Omaha, Neb., has resigned to accept a
place on the examining board of the Federal Reserve
at W ashington, D. C.
Mr. W iltse’s work will be examining the federal re­
serve banks in about thirty-five of the important cities
of the United States and making reports to the Feder­
al Reserve board.

A merican State Bank
CAPITAL,

$200,000.00

OM AHA

D. W. GEISELMAN, President

H. M. KROGH, Asst. Cashier

D. C. GEISELMAN, Cashier

FOUNDED ON SECURITY
This bank does more for you than carry
your account. We have the facilities you
would specify for the handling of your

BUILT ON SERVICE
banking business. We invite your account
on the basis of service. Why not talk bus­
iness with us?

Deposits in this bank are protected by the Depositors’ Guarantee Fund o f the State o f Nebraska.
R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d v ertiser».


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Federal Reserve Bank of St. Louis

THE

October, 1920

N ORTH W ESTERN

67

BANKER

Bank Doubles Capital.
The Chappell State Bank, Chappell, Neb., at a
meeting of the stockholders held recently, unanimous­
ly voted to increase the capital stock of the institu­
tion from $25,000 to $50,000.

New Bank Building.
The Farmers & Merchants Bank, Murdock, Neb.,
has moved into a new modern building. It is con­
structed of white face brick trimmed in Bedford and
Carthage stone.

Citizens Bank Norfolk.
The Citizens Bank, Norfolk, Neb., has recently
moved into their newly reconstructed quarters. The
staff has been working in a temporary frame build­
ing. A formal opening will be held for the public in
the near future.
The entrance to the building has been changed, and
the banking room arranged to give the best possible
light for employes. A fan system of ventilation has
been installed, also a burglar alarm system. A three
story vault has been built. Thé safety deposit boxes
are of the latest type of steel and are fireproof.
The building contains several features for the as­
sistance and convenience of customers, among which
are rest rooms, telephone booths, consultation rooms
and private offices where personal affairs may be free­
ly discussed with the officers. The accounting de­
partment is housed in a separate room.

Bank Changes Name.
The M cGrew State Bank, located at McGrew, Neb.,
has changed its name to the Security State Bank of
McGrew. The management of the institution has
been changed, the interests of Mark and Frank Jones
Were purchased by parties outside of McGrew.
Jake A begg, who has been with the First National
o f Scottsbluff, has taken over the management. S.
K. W arrick, T. L. Green and H. H. Ostenburg, all of
Scottsbluff, are the new directors.

THE UNL¥

BANK

— in the —
U N IO N S T O C K Y A R D S

When You Have an Object in yiew
it is perfectly n atu ral to accom plish
th a t object by the m ost direct m e th ­
od. If your business is largely de­
pendent on live stock, you will find
a great advantage in carrying an a ccou n t w ith t h e .

Stock Y ards National Bank
,

of South O m aha, N ebraska

T h e O nly Bank in th e U nion Stock Yards
Special A tten tio n Given to G rain D rafts
O F F IC E R S
Ford E. Hovey, President
J. C. French, Vice President
J. B. Owen, V . Pres. and Cashier
J. S. King, Vice President
F. J. Enerson, Vice President

W . L. Pier, Vice President
H . C. M iller, Assistant Oashler
W . H . Dressier, Asst. Cashier
C. L . Owen, Assistant Cashier
H . W . Vore, Auditor

COUNTRY BANKS ACCOUNTS

Benkelman Bank Increases Capital.
The Citizens State' Bank of Benkelman, recently in­
creased its capital stock from $30,000 to $50,000. The
bank was organized eleven years ago with C. R.
W alker, president and F. R. Walker, cashier. De­
posits now amount to three quarters of a million
dollars.

Receive the best service in
collecting their Live Stock
Returns and Grain Drafts.

Elected Cashier.
W alter Klein, who has been a teller in the Hartington National Bank, Hartington, Neb., resigned and
has gone to Randolph, where he has been elected
cashier of the Farmers State Bank.

J. F. CO A D , President
H . C. Nicholson, V . P . and Cashier

TRYING TO FORCE STATE BANKS INTO THE
FEDERAL RESERVE SYSTEM.
(Continued from page 11.)
Bishop had done and sign up as the day was near
when we would be forced. They took a draft for
the checks they had and departed, saying that they
had enough of t h is ----------business.
“ Subsequently checks were sent through the Ex­
press Company and returned by the express, agent for
the reason as I said, that he didn’t have time to count
the money.
“ A long about the 27th day of December, 1919, a
R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g t o ou r a d v ertisers..


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Federal Reserve Bank of St. Louis

THE

68

N O RTH W ESTERN

Your Account in This Bank
assures you at all times of ample funds to care for
your requirements. All items will receive our
immediate attention. Hundreds of progressive
banks are using our services now—may we have
an opportunity to*serve£you ?

Gapital, Surplus and Profits $2,235,000.00
OFFICERS.
President
M ilton T . Barlow
Chairman of Board
Gurdon W . W attle«

U N IT E D

Vice Presidents
John L . Kennedy
W m . E. Rhoades
Robt. P. Morsman
Cashier
Jos. C. M cClure

STATES

Assistant Casmers
Gwyer H. Yates
Chas. F . Brinkman
Thos. F. Murphy
Ralph R. Rainey
Harry E. Rogers
Perry B. Hendricks

N A T IO N A L

BANK

OF OM AHA

Bank Stock
T h e sign o f B E T T E R SE R V IC E

If you w a n t to sell or b u y a b an k
we can su p p ly y ou r w an ts
Q U IC K L Y — Q U IE T L Y

No Publicity

BANKER

October, 1920

Mr. Fairley came to Pierce from Kansas City and
asked us to sign the ‘................... * relative to parring
checks or join the Federal Reserve System. W e re­
fused. He then stated that he was instructed to stay
in Pierce until he had accomplished something. From
that date until the day of making this affidavit Mr.
Fairley has been here continuously and collects cash
every day on checks sent him by the Federal Reserve
Bank.
“ On January 5, 1920, a Mr. J. G. Bryan came in
from Kansas City- and he and Mr. Fairley have been
instrumental in trying to start a National Bank at
Pierce, devoting practically their entire time collect­
ing cash on checks sent by the Federal Reserve Bank
upon banks in Pierce and promoting a National Bank
that they will compel the banks of Pierce to join the
system. Our customers report to us that these men
have told them that we are robbing them out of ten
cents on every hundred dollars of their money.
“ Oh or about the 14th day of January, 1920, Mr.
Jones joined Mr. Fairley and Mr. Bryan and has
acted as Notary Public, protesting checks presented
by the afore'said agents of the Federal Reserve Bank
of Kansas City, notwithstanding such checks were
endorsed on the face ‘not payable through the Federal
Reserve Bank, their branches or agents, nor Express
company nor postoffice/ and are continuing to pro­
test such checks when we refuse payment of them in
their hands and in one case have presented a check a
second time and protested it each time.
“ Evety agent of the Federal Reserve Bank that has
been here has advised us in substance that they were
spending the government’s money like drunken sailors
and will not stop at any expense to force us to join
the system.
“ One of my competitors told me that Mr. Davis told
him in substance that the Federal Reserve board had
a steam roller on the way from W ashington to crush
me personally and ruin my bank if I persisted in re­
fusal to comply with their demands. I subsequently
called Mr. Davis’ attention to this report and he per­
sonally acknowledged to me that he had made such a
statement in substance.
(Signed) “ W O O D CONES.
“ Sworn to and subscribed before me this 10th day
of February, 1920.
(Signed) “ D O U G L A S CONES,
“ Notary Public in and for Pierce County, Nebraska.
“ My commission expires September 25, 1925.”

Everything Confidential

The Charles E. Walters Co.
1422-30 First N ational Bank Building

Omaha, Nebraska

WeWill equip Ybgr Officeco*plete,

OMAHA
P R IN T IN G
COMPANY
ORARAS

ÎTADOtm LARGEST
UnOWMIS RETOURS 13th. and

tKUvus

Coast Office;

fune omets

ART METAL SAFES
OFFICE FMMTMK
SUFFUES

m orì u n

FARNAM

PORTLAND, OREGON.

Read the Live Wire.

Commercial Printers -L ithographers - steel die Embossers
LOOSE

LEAF

O EV IC ES

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Federal Reserve Bank of St. Louis

THE

October, 1920

N O RTH W ESTERN

69

BANKER

I T T H Y T A K E CHANCES
*

samkmmi

H yP

"

Our location at the Union Stock Yards and our adequete
facilities assure you Promptness and Accuracy
in the handling of your Stock Yard business.

LIVE STOCK N ATION AL BANK
MEMBER AMERICAN BANKERS ASSOCIATION

UNION STOCK YARDS

OMAHA

Resources $11,000,000.00

The Omaha National Bank
Omaha, Nebraska
Established in 1866

Surplus $1,000,000.00

Capital $1,000,000.00
Resources $35,000,000.00

J. H . M IL L A R D , Chairman of the Board
W A R D M. BURGESS,
B. A. W IL C O X ,
Vico President
Vice President
k z R A M IL LA R D ,
O. T . A L V I S O N ,
Cashier
Assistant Cashier
W . D A L E C L A R K , Assistant Cashier
EDW ARD

W A L T E R W . H E A D , President
FR A N K BOYD,
Vice President
J. A. CHANGSTRO M ,
Assistant Cashier
N E A L E , Assistant Cashier

Exceptional collection facilities, the result of years of effort to
improve service to correspondent banks.

4The Merchants National Bank
• o f

O M

A H A

CAPITAL. - .............
......... $1,000,000.00
UNDIVIDED PROFITS........-$459,817.89
L U T H E R D R A K E , P r e s id e n t
F R E D P. H A M IL T O N , V . P re s id e n t
B. H . M E IL E , V ic e P re s id e n t
LUTH ER DRAK E
F R E D P. H A M IL T O N
G. S. R O G E R S

ACCOUNTS

NEBRASKA
SURPLUS......... - _______ ___ - $500,000.00
DEPOSITS— ......... ......... — $15,131,748.13

O F F IC E R S
O. T . E A S T M A N , V ic e P r e s id e n t
S. S. K E N T , C a sh ie r
H . D. B E N T L E Y , A s s is t a n t C a sh ier
D IR E C T O R S
G E O R G E N. P E E K
F R A N K W . JU D SO N
C H A S. L . S A U N D E R S

SOLICITED

B . B. W O O D , A s s is t a n t C a sh ier
J. P. L E E , A s s is t a n t C a sh ier
C. M. F I X A , A u d it o r
C. W . H A M IL T O N
F . B. JO H N SO N
N. B. U P D I K E

U.

S.

DEPOSITORY

BAN K SUPPLIES
FROM A DEPENDABLE SOURCE
It is to the interest of every banker to be in touch with an establishment on which
he can depend for his bank supplies. Especially is this true at the present time. • We
offer you the services of our organization which has had 40 years’ experience in making
supplies for the banks of the middle’ west.
An order from you will allow us to demonstrate what we can do.

Hammond Printing Co., Fremont, Nebraska


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Federal Reserve Bank of St. Louis

70

THE

N O R T H W E S T E R N

BANKER

October, 1920

“ Identified with Chicago's Progress Since 1857"

With increased resources and improved
facilities we are ahle still further to en­
large our usefulness to the business com­
munity and to increase our service m the
interest of American trade and industry.
Established 1810

The Mechanics & Metals
National B ank

Board o f Directors
CLARENCE A. BURLEY............. ................... Attorney and Capitalist
R. T. CRANE, JR ............. ............................ President Crane Company
ERNEST A. HAM ILL.......... Chairman Corn Exchange National Bank
HALE HOLDEN. . .President Chicago, Burlington & Quincy Ry. Go.
MARVIN HUGHITT. . . Chairman Chicago & North-Western Ry. Co.
EDMUND D- HDLBERT.........................................................President
OHAUNCEY KEEP.
.................... Trustee Marshall Field Estate
CYRUS H. McOORMICK. . . . Chairman International Harvester Co.
JOHN J. MITCHELL.................................................Chairman of Board
SEYMOUR MORRIS................................... Trustee L. Z. Leiter Estate
JOHN S. RUNNELLS.............................President Pullman Company
EDWARD L. RYERSON............. Chairman Joseph T. Ryerson & Son
JOHN G. SHEDD........................ President Marshall Field & Company
ORSON SMITH............................. .. . Chairman of Advisory Committee
JAMES P. SOPER...................... .... President Soper Lumber Company
ALBERT A. SPRAGUE.................... Chairman Sprague Warner & Co.

M E M B E R FEDERAL RESERVE S Y S T E M
DEPARTMENTS

of the City of New York

C O M M E R C IA L -S A V IN G S —T R U S T —B O N D F A R M LO AN —FO R EIG N E X C H A N G E

Capital, Surplus and Profits $25,000,000

Capital and Surplus $ 1 5 ,0 0 0 ,0 0 0

D IR E C T O R S

O F F IC E R S

JAMES H. ASHBY
SAMUEL COZZENS
S. T. KIDDOO
G. F. EMERY
ARTHUR G. LEONARD
J. A. SPOOR
H. E. PORONTO
M. A. TRAYLOR
F. EDSON WHITE
THOMAS E. WILSON
LOUIS F. SWIFT

S. T. KIDDOO, President
G. F. EMERY, Viee-Pres.
J. L. DRISCOLL,
Assistant to President
D. R. KENDALL, Cashier
A. W. AXTELL, A. Cash.
L. L. HOBBS, Asst. Cash.
H. E. HERRICK, A. Cash.
C. L. WISTRAND,
A. Cash.

Resources Over

Capital and Surplus

$2 ,250,000

Established 1868

$ 25,000,000

IM P O R T A N T
The live stock industry is in urgent need of all possible financial
assistance at this time. Co-operation between all banks and in­
dividuals interested in this most essential field is absolutely nec­
essary and this institution respectfully solicits additional deposits
for this exclusive purpose.

THE LIVE STOCK nauonal BANK
of Chicago
R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers.


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Federal Reserve Bank of St. Louis

October, 1920

THE

N O RTH W ESTERN

BANKER

71

Kansas City Banks Merge.
The board of directors o f the National Reserve Bank
and the Midwest National Bank and Trust Company,
Kansas City, adopted the following simultaneously at
their respective meetings preparatory to the proposed
merger:
“ It is the judgment of the board that in the consolida­
tion o f the interests of the National Reserve Bank and
the Midwest National Bank and Trust Company, o f Kan­
sas City, into one institution, much economy of operation
may be effected, greater net returns to stockholders be ex­
pected, the risk o f losses be minimized, the investment of
every stockholder be made more desirable, the commer­
cial interests o f Kansas City strengthened, the efficiency
of service increased, and the prosperity of all concerned,
including stockholders, patrons and community, decidedly
advanced without reason for any valid objection from
any source.
“ Therefore, W e do this day recommend to our share­
holders the merger of the above banking interests, and
we pledge our hearty efforts and good will to consummate
such consolidation. W e consider this opportunity logical,
sound and desirable. W e voluntarily vote this recom­
mendation and express great satisfaction in the unusually
friendly feelings towards such merger upon the part of
the respective interests concerned.”
It is recommended that the consolidation become effec­
tive as soon as necessary details can be perfected.
It is proposed that the new merged institution be known
as the Midwest Reserve Trust Company, capital, $2,000,000; surplus, $200,000. (This will permit the merged
bank to show approximately $17,000,000 deposits.) It
is proposed that each bank shall contribute one million to
capital and one hundred thousand to surplus in the new
institution, and that the remaining assets in each bank in
excess of amount required for above capital and surplus
in new bank, and after all other resources and liabilities
have been provided for by the new institution, shall be
absorbed by such securities as may be selected from the
respective banks’ assets by friendly agreement, the re­
spective banks to liquidate such securities as each bank
may elect for the benefit of their respective present stock­
holders. Since such securities from both banks will be
selected by a competent disinterested umpire, it can be
anticipated that the merged bank shall be as free from any
objectionable securities as it is humanly possible to
make it.
The merged bank will occupy the quarters o f the Na­
tional Reserve Bank, the southwest corner of 10th and
Walnut streets.
The members of the respective boards are recommend­
ing that Messrs. Wm. Huttig, as chairman; P. E. Laughlin, president; C. B. McClusky and Harry Warren, active
vice presidents; and Messrs. J. F. Houlehan, J. H. Berk­
shire, Jake L. Hamon, H. E. Huttig, honorary vice presi­
dents, be named in the merged institution, mutually agree­
able arrangements to be made as to other officers. The
consolidated bank is to have a board of approximately
thirty members.
The bank will be a member bank in the federal system;
hence enjoy all the advantages of both the national and
state systems.

Discount Corporation of New York.
The Discount Corporation, of New York, with a
capital and surplus of $6,000,000 has discounted and
resold to investors throughout the country accept­
ances aggregating over $1,200,000,000 since January
first of this year.

Walter H. Rhodes
Confidential Bank
Broker

BANKS
AN D
BANK
STOCKS

Omaha

Personal
Service
to our correspondents— under
the direction of one of our VicePresidents— is responsible for
the satisfactory and continued
growth of our out-of-town busi­
ness.
W e invite your inquiry re­
garding business relations.

S fe N a t io n a l ( ì i y R a n k

o f ffrlCAGO
DAVID R. FO RG AN , President
BANKS AND BANKERS DEPARTMENT
F. A. Crandall, Vice-Pres.
S. P. Johnson, Asst. Cash.

Henry Meyer, A sst. Cash.
R . V . Kelley, A sst. Cash.

R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R W hen w ritin g to ou r advertisers.


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Federal Reserve Bank of St. Louis

72

THE

N O RTH W ESTERN

BANKER

October, 1920

M IN N E S O T A B A N K N E W S
New Bank to Open.

Elect Officers.

The First National Bank, Elbow Lake, Minn., an­
The Evergreen State Bank at Frazee, Minn., will
open for business about October 15th. The officers nounces the election of Anton M. Nelson and Miss
are: John H. Baldwin, president; Fred Kretcshmer, Genevieve Doely as assistant cashiers. Mr. Nelson is
vice president and J. A. Nygren, cashier. The direc­ an ex-service man and was formerly connected with
tors are as follow s: John H. Baldwin, Frazee; U. S. •banks at Ivanhoe and Tyler, Minnesota, while Miss
G. Henry, P on sford; G. D. Hardman, Park R apids; Doely has been with the First National Bank for some
J. A. Nygren, P onsford; W . J. Just, Frazee; Fred time as bookkeeper and stenographer.
Kretcshmer and Charles S. Palmer, Evergreen.
W . H. Goetzinger is the president and Joseph P.
Brendal, cashier. During the past year the resources
of the institution have increased $100,OCX), and it is re­
Wrest $5,000 From Messenger.
Struck in the face by one of two bandits as he was garded as one of the leading banking institutions of
waiting for a street car, Norbert Henkes, sixteen years Grant County.
old, messenger for the North American Bank, Minne­
Minneapolis National Elects Officers.
apolis, was robbed of $5,000, which he was carrying
to the bank at 1223 W ashington avenue, recently.
Directors of the Minneapolis National bank have
.The robbery occurred at W ashington and Fifth announced the election of H. R. Taylor as trust officer
avenues south just as the boy had completed his to head its newly created trust department, organized
rounds of collections from customers of the bank and under federal legislation authorizing national banks
was preparing to return. T w o men stepped up to to assume trust powers, and as bond officer to have
him as he stood waiting for the car, themselves.ap­ charge of the bank’s bond and investment securities
parently about to board a car also, he said. Then one business. Mr. Taylor, who is now vice president and
of them struck him while the other grabbed the bag manager of the bond department of one of the local
containing the money, $2,OCX) in cash and $3,000 in bond houses, was at one time a commissioner of the
checks. They jumped into a waiting automobile which supreme court of Idaho, in which state he practiced
stood at the curb and escaped.
law before entering the investment banking field. He
is a graduate of the University of Minnesota.

Moonlight Excursion.

Your Business in
the Twin Cities
will be greatly facilitated if you trans­
act it through this bank. Through our
well-equipped departments— Commer­
cial,
Correspondent Banks,
Trust,
Savings, Safe Deposit and Foreign—
we offer complete and efficient service.

Over 765 Bank Correspondents
in the Northwest

Midland
National Bank
M IN N E A P O L I S

Resources $25,

Forgetting overdrafts, differences and problems of
foreign exchange, 500 employees of the Northwestern
National Bank, the Federal Reserve Bank and the
Minnesota Loan and Trust Company, Minneapolis,
"went down the Mississippi river recently on a picnic
excursion aboard the steamer Red W in g and the barge
Manitou.
The boat left the Jackson Street dock, St. Paul, at
4 :00 p. m. and proceeded to Grey Cloud Island where
a picnic supper was served underneath the trees.
After the last piece of watermelon had been devoured
and all hands were again on deck the boat steamed
down the moonlit Mississippi to Red W ing.
The trip was in charge of employes of The North­
western, W alter Peterson, assisted by R. O. Thayer,
having charge of the arrangements; Fred W ill, enter­
tainment; Lawrence De St. Croix, tickets; and D. E.
Lent, music, assisted by Harold Anderson and Arthur
Olson.

Bank Ready for Business.
The building of the Peoples State Bank of Little
Falls, Minn., is rapidly being refitted to accommodate
the new banking venture in the city.
J. A. Barton is president of the new organization
and his brother, A. A. Barton, is cashier. W . G.
Lundquist, from T w o Harbors, Minn., is the assistant
cashier.
The fixtures of the bank are in mission oak with
granite baseboards.
The policy of the bank is to be such as to en­
courage small depositors.

R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to o u r a d v e r tis e r s .


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Federal Reserve Bank of St. Louis

October, 1920

Established 1863

THE

N O RTH W ESTERN

73

BANKER

The First National Bank ó f St. Paul
Capital and Surplus, Five M illion Dollars
This strong, progressive bank, conducted along con­
servative and modem 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 Dollars
Banks Consolidate.

Purchases Controlling Interest.
S. A. Jacobson, R. T. Hart, and associates, have
purchased the controlling interest in the State Bank
of Mahtowa, Mahtowa, Minn., from G. G. Luhman,
of Howard Lake, Minn.
The new officers are S. A. Jacobson, president; R.
T. Hart, vice president; O. A. Schultz, cashier and
Ernest R. Kreitlaw, assistant cashier.

The Bank of New Richmond, Minn., and the Man­
ufacturers Bank of New Richmond, will consolidate
on October 1, 1920, the new institution to be known
as the Bank of New Richmond, with capital of $112,500 and deposits of nearly $1,500,000.
The new president will be M. P. M cN ally; vice
presidents, L. A. Baker and A. P. Bixby ; cashier,
Ralph W . McCoy.

Stock Yards National Statement
The Stock Yards National Bank, South St. Paul,
Minn., has issued a statement in attractive form, in
which the deposits are stated as being $4,714,080.65.
The officers o f this institution are as fo llo w s: J.
J. Flanagan, president; J. S. Bangs, vice president;
Jay E. Markle, vice president and C. E. Mills, cashier.

Pioneer Banker Dead.

$21,000,000 Loaned to Farmers.

James F. R. Foss, 72 years old, one of Minneapolis’
pioneer bankers, died recently at his home.
Mr. Foss came to Minneapolis in 1884 from Boston,
where he had served as cashier of a bank. He founded
the old Nicollet National Bank of which he was first
cashier and later made president. He retired from
the banking business several years ago.

More than $21,000,000 has been borrowed by 5,000
farmers in Minnesota from the Federal Land bank
and the five joint state land banks of Minnesota, ac­
cording to the report of the American Association of
Joint Stock Land Banks.
Applications from 5,000 other farmers for loans are
pending, the report says, awaiting the decision of the
United States Supreme court on the constitution­
ality of the land bank act. The decision is expected
this fall.
“ W hen the land banks were tied up by the suit in
the courts, interest rates on farm lands were advanced
by the old style mortgage brokers, not only in Minne­
sota-but throughout .the country,” the report states.
The loans under the federal farm loan system were
at low rates of interest, none exceeding 6 per cent.

St. Paul taxpayers probably will be called on to
pay $60,000 next year to make up the loss incurred
by the city engaging in the banking business.
Comptroller Jesse Foot has stated that an item of.
about $60,000 would have to be placed in the 1921
budget, in order to comply with the charter provision
by which the city guarantees payment of all deposits
in the Municipal bank, otherwise known as Farns­
worth’s bank, it having been established when S. A.
Farnsworth was commissioner of finance.
The depositors cannot lose a dollar, whether the
bank makes any money or not, but the stockholders,
who are all the taxpayers of St. Paul, stand all the
loss.

Municipal Bank Deficit.

Guaranteed Electric Burglar Alarm Systems
B U IL T B Y

The American Bank Protection Company, Inc.
C A P I T A L $ 1 5 0 ,0 0 0 .0 0
Minneapolis

-

Minnesota

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

74

THE

N O RTH W ESTERN

BANKER

October, 1920

St. Paul Banks Merge.
Announcement that the directors of the Capital Na­
tional Bank and the National Bank of Commerce have
voted ’ to merge the two institutions brings added
strength to Northwestern banking circles by the crea­
tion of a third bank in St. Paul with capital and sur­
plus exceeding a million dollars.
The consolidated bank which will retain the name
of The Capital National Bank and which will occupy

F ir s t N a t io n a l B a n k
MINNEAPOLIS, MINN.
S ta te m e n t of Condition, Sept. 8, 1920

R E SO U R C ES

Loans and Discounts.................................................. $ 68 , 2 1 3 , 737.60
Overdrafts ....................................................................
2 2 0 , 274.82
United States Bonds. .'..............................................
2 , 3 8 5 , 227.00
U. S. Certificates of Indebtedness.............................
4 78 . 0 0 0 . 00
2, 0 91 , 638.74
Other Bonds and Securities........................................
Bank Building and other Real Estate............ ..........
9 50 . 0 00 . 00
Customers’ Liability Account Letters of Credit and
6 ,4 1 8 , 374.04
Acceptances .............................................................
1 , 8 50 , 000.00
Bankers Acceptances Purchased............. ...................
2 4 , 703 , 166.72
Cash on hand and due from Banks..........................
$ 1 0 7 , 3 10 , 418.92
L IA B IL IT IE S

Capital Stock ............................................
Surplus ................................ .....................
Undivided Profits .....................................
Circulation ..................................................
Letters of Credit and Acceptances...........
Bankers Acceptances Discounted.............
Taxes Accrued ..........................................
Notes and Bills Rediscounted....................
Bills Payable ...............................................
Deposits ................................. .....................

$

5 , 0 00 , 000.00
5 . 0 00 .
000.00
1 , 3 13 , 970.71
1 , 7 3 9 , 700.00
6 , 4 1 8 , 374.04
1 . 8 50 . 0 0 0 . 00
3 4 5 , 496.02
19 , 2 9 2 , 007.00
5 28 , 000.00
6 5 , 822 , 871.15

$ 107 , 3 10 , 418.92
O F F IC E R S .

F. M. PRINCE,
Chairman Executive Com,
A. A. CRANE,
Vice President
J. S. POMEROY.
Vice President
FRED SPAFFORD,
Vice President
H. A. WILLOUGHBY.
Vice President
P. J. LEEMAN,
Vice President
SUMNER T. MeKNIGHT,
Vice President
GEO. A. LYON,
Vice President

F. A. CHAMBERLAIN,
Chairman Board of Directors
T. JAFFRAY,
President
J. G. BYAM,
Vice President
E. E. BLACKLEY,
Vice President
STANLEY H. BEZOIER,
Cashier
JOHN G. MACLEAN,
Assistant Cashier

WALTER A. MEACHAM,
Assistant Cashier
C. B. BROMBACH,
Assistant Cashier
K. M. MORRISON.
Assistant Cashier

NORTHWESTERN STAMP WORKS
St. Paul, M innesota

Rubber Stamps of Every Description
O ther Specialties

—

Seals, Check Protectors
K ey Checks, Identification Checks
Desk Plates, Signs, Pads, Inks
AND IN FACT ANYTHING

IN THE STAMP LINE

the quarters of that institution will have a capital of
$1,000,000, surplus of $200,000, deposits of about
$12,000,000 and total resources exceeding $18,000,000.
John R. Mitchell, Chairman of the Board of the
Capital National Bank, will become Chairman of the
Executive Committee of the com bined. banks and J.
A. Reagan, President of the National Bank of Com­
merce, will be Chairman of the Board of Directors.
James L. Mitchell, President of the Capital National
Bank will retain that position after the consolidation.
Mr. Knauft, vice president of the National Bank of

A M E R IC A N
EXCHANGE
N A T IO N A L B A N K
OF DULUTH
Offers you its complete service in the
handling of your business
Capital, Surplus and Profits $2,900,000
Officers
H am ilton M . Peyton, Pres.
W illiam G . Hegardt, Vice Pres.
Isaac S. Moore, Cashier
Colin T hom son, Asst. Cash.
J. Daniel M ahoney, Asst. Cash. Edward L . Palmer, Asst. Cash.

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Federal Reserve Bank of St. Louis

THE

October, 1920

N O RTH W ESTERN

Commerce, and C. E. Johnson, Vice-President, and
E. J. Gifford, Assistant Cashier of the Capital Na­
tional Bank will be Vice-Presidents of the new bank.
George M. Brack, cashier of the Capital National

75

BANKER

Income Tax Service
Auditing
Accounting Systems
CHAS. H. PRESTON & CO.
.

Public Accountants

1040-41 P lym ou th Building

A tlan tic 2777

M IN N EAPO LIS

BANKS FOR SALE
Controlling interest in national bank in northern
Wisconsin town of 2,000; Capital $25,000.00; Deposits
$350,000.00; Earnings 35% per annum; Investment
$40,000.00 cash.
All of stock in $10,000.00 capital bank in central
North Dakota town of 600 population;
Deposits
$200,000.00; Earnings 25% to 50% annually; Investment
$25,000.00, one-half cash.
These are both desirable propositions and will stand
the strictest investigations.
Correspondence solicited.

A D A M H AN N AH & CO.
52 South 4th Street

Minneapolis, Minn.

BANK BROKERAGE DEPARTMENT.

Bank will have that post in the consolidated bank.
The board of directors will be the combined boards
of both banks.
The Capital National Bank was organized by John
R. Mitchedl and associates in 1906 and is a consolida­
tion of the old Capital Bank of St. Paul and the St
Paul National Bank. Since its organization the Cap*
ital National Bank has made steady progress and to*
Y o u ’re n ot know n by all who com e in your bank

I

W
•

I

J .m m

K

P M S ta tm ........

I

Our nam e-plate a t your desk will introduce you
Order now for im m ediate delivery
S T . PAUL STAM P W O R K S
Bank Dept.
ST . PAUL, M IN N .

Bank with

“ Let Us Serve Y o u ”

You will like our service
and we’ll be mighty
pleased to serve
you.

A m e r ic a n N a tio n a l B a n k
SAINT PAUL, MINN.

Service A b ove All
This bank believes in the practical application
of the Rotary slogan, “ He profits most who serves
best.” Any one requiring the services of a bank
at the Head of the Lakes is invited to give our
facilities a test. If you don’t, we both lose.

The First National Bank
D ULUTH , MINNESOTA
Capital, Surplus and Profits over $3,400,000.00
“The Bank of Complete Personal Service.”

BONDS
INTERIM CERTIFICATES
W IRE FOR PRICE on your next Issue of bonds AT OUR EXPENSE

WE SPECIALIZE IN
Engraved, Lithographed, Printed or
Steelograph Bonds and Interim
Certificates
Checks, Drafts, C. D’ s., Letter
Heads of All Kinds

Poncher Printing & Lithographing Co.
M INNEAPOLIS

314-324 Fourth Street South
-

M INNESOTA

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Federal Reserve Bank of St. Louis

76

THE

N O RTH W ESTERN

The Consolidation of

The Capital National
Bank
AND THE

National Bank of
Commerce
W IT H

Capital
Surplus

$1,000,000.00
200,000.00

means increased facilities for ser­
vice to the banks throughout the
Northwest.

BANKER

October, 1920

gather with the Capital Trust & Savings Bank with
which it is closely affiliated has become one of the
leading financial institutions of the Northwest.
The National Bank of Commerce was organized by
W . A. Miller, F. A. Nienhauser and their associates
in 1914. About two years ago Mr. Reagan became
president of the bank and a year later Mr. Knauft be­
came associated with the bank as vice-president and
cashier. Since its organization the bank has had a
remarkable growth. '
John R. Mitchell who will be chairman o f the ex­
ecutive committee of the consolidated bank is well
known in banking circles having formerly been pres­
ident of the Minnesota Bankers Association. He is a
former member of the executive committee of the
American Bankers Association and during the war
was a member of the Advisory Council of the Federal
Reserve Board.
Before coming to St." Paul Mr.
Mitchell was president of the Deposit Bank of Winona.
Mr. Reagan who came to Minnesota from Iowa was
for a long time president of the First National Bank
of W innebago. In 1905 he founded the St. Paul State
Bank of which "he is still president and two years ago
became associated with the National Bank of Com­
merce as president.
James L. Mitchell, president of the Capital National
Bank has risen rapidly in St. Paul banking circles,
coming directly to the Capital National Bank after
graduation from Yale thirteen years ago and rising
from the ranks to the positions of cashier, vice presi­
dent and then president.
Mr. Knauft who will be vice president had his bank­
ing start in the old German American Bank. He later
became cashier of the Merchants National Bank after
its consolidation with the German American Bank,
and resigned a year ago to become vice president of
the National Bank of Commerce.
A. J. Newgren, R. F. Sturley, M. J. W arn, E. A.
Hinsch, D K. Patterson and F. A. Leavitt will be as­
sistant cashiers.

New Banks Chartered.

W e shall w elcom e the opportunity
to acquaint you with the larger
service made possible by this mer­
ger.

The Capital National
Bank
St. Paul

-

-

M innesota

Charters have been granted for new state banks at
H olloway, St. Stephen and Rabey, Minn.
R. C. W eiss and C. W . Riba were applicants for
the charter for the Peoples State Bank of Holloway.
Frank J. Knettel and Frank W oulk are organizers of
the St. Stephen State Bank, and H .V. Eastman and
A. B. Feero were granted the charter for the Farmers
State Bank of Rabey.
Three new applications for bank charters have been
filed with the State Securities Commission.
D.
Greeley of Virginia and Theo. Albrecht of Minne­
apolis plan the organization of the Peoples State Bank
of Gilbert; Frank D. Herder of Jordan and G. H.
Freytag of Park Rapids are applicants for a charter
for the Farmers State Bank of Akeley, while Hans L.
Gorder and Martin P. Eidburg would establish the
Citizens State Bank of Starbtick.
The First State Bank of Santiago, Minn., was
granted a charter by F. E. Pearson, state superinten­
dent of banks. This bank will have a capital of
$15,000.
Ettrick, Minn., is to have another bank. A charter
has been granted to an organization of farmers and
business men. G. L. Hjerléid will be cashier.

R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertiserm.


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Federal Reserve Bank of St. Louis

October, 1920

THE

N O RTH W ESTERN

77

BANKER

J u st p r io r to th e w a r it w a s e s tim a te d th a t
th e r e w e r e 300,000 m a n u fa c t u r in g c o n c e r n s
in th e U n ite d S ta te s ; th a t 100,000 o f th e se
d id n o t e a rn o n e c e n t o f p r o fit a b o v e n o r m a l
in te r e s t o n th e ir in v e s t m e n t ; an d th a t 270,000
di.d, n o t ev en k n o w w h a t it a c t u a lly c o s t th em
to p r o d u c e th e ir p ro d u c t.
W h a t a W a ste ! H o w U n n ecessa ry!
Ig n ora n ce
and
guess
w o r k in p la c e
of
K n o w le d g e a n d S y stem .
E x a c t K n o w le d g e , b a se d o n f a c t s an d fig u r e s,
and in t e llig e n t ly a p p lie d w it h S y ste m ‘ is th e
o n ly g u a r a n te e o f p ro fit.

T o Bankers:

Straight Line Methods
OF

H E Moline Plow Com­
pany’ s Dealers’ Con­
tract is an expression
of our earnest conviction that
our own success depends on
our constructive development
to the two chief elements of
community service— Retailer
and Bank.
W e seek, therefore, to
attract the most progressive
merchant and the best bank
in each community, by a con­
tract with one, and a policy
toward the other, which offer
to both an unprecedented op­
portunity and a mutuality of
interest and profit.

ERNST & ERNST
A ssu re

th e

k n o w le d g e

e x e c u tiv e a t a ll tim e s e x a c t
in a ll b r a n c h e s o f h is b u s in e s s ;

im p ro v e m e n ts b a s e d o n fa c t s an d
fig u r e s ; e lim in a te w a s te o f m a te r ia l a n d l a ­
b o r in f a c t o r y an d office; a n d e s ta b lis h th e
w o r k in g e s s e n tia ls o f S y ste m , O r g a n iz a tio n
su g gest

an d S u ccess.

ERNST & ERNST
AUDITS - SYSTEMS
TA X SERVICE
M ow

Y o rk

Phiiaripinhia
pnilaaeipm
a
Boston
Providence
Washington

Chicago
Minneapolis
c,
D “ 7,
St.
Paul
Rt. Louis
Kansas City

Cleveland
Buffalo
D i.t.Kn
Pittsburgh
Detroit
Grand Rapids

S T R A IG H T L IN E

Cincinnati
Indianapolis
Toledo
Atlanta
Richmond

New Orleans
Dallas
Fort W orth
Houston
Denver

M ETHODS

W e shall be glad to an­
swer the inquiries of any
bank or merchant.

MOLINE PLOW COMPANY
Moline, Illinois

A bank takes pleasure
in extending the field o f
its usefulness to the
friends and associates ot
th ose it has already
served. Growth fostered
in this way is based not
upon promises o f future
service but upon past
mutual satisfaction.
OF N E W YORK
Established


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Federal Reserve Bank of St. Louis

1856 ,

78

THE

N O RTH W ESTERN

BANKER

October, 1920

M O N TAN A BANK NEWS
A . T . H ib b a rd , A s s o c ia te E d ito r (S e c r e ta r y M o n ta n a B a n k e r s A s s o c ia t io n ) .

To Aid Farmers.

Banks Discount Canadian Currency.

The First State Bank, Livingston, Mont., has en­
gaged the services o f L. H. Peck, of Big Timber to
help the farmers in marketing their crops this fall.
Mr. Peck will lend his co-operation in arranging for
cars and transportation of the bumper crops so that
they may be moved with least congestion. He is
well known in the locality and thoroughly familiar
with the conditions of the grain and stock industries.
Mr. Peck was formerly president of the Commercial
Bank & Trust Company in Big Timber.

All the banking institutions in Miles City, Mont.,
have announced to their patrons that in the future it
will be necessary to discount Canadian money. Fluc­
tuation in the Canadian exchange is stated to be the
reason for the discount. The rate of discount as de­
termined by the banks, is 20 per cent for silver and 15
per cent for currency. Thus a half dollar Canadian
piece is worth forty cents in American money, a quar­
ter, twenty cents, and a ten cent piece, eight cents.
The banks state that the policy of discounting
Canadian money is now nation-wide in its applica­
tion. In many of the large cities on the western coast,
Canadian money will not be accepted even at discount.
Since the announcement of the discount in Miles City,
there has been a noticeable. tightening up of the cir­
culation of Canadian money. Many business houses
have refused to accept the money in trade.
Naturally the favorable opening for speculation has
been accepted by many people near the boundary line
it is stated. Canadian money collected in the United
States at the discount rate, and exchanged in Canada
at par value, as a business proposition has not been
overlooked.

Bank Holds Annual Picnic.
The annual picnic of the officers and employes of
the Bank of Fergus County, Lewiston, Mont., was
held at Y o g o and Tollgate canyons in the Belt moun­
tains, recently. The party arrived at the Y og o mine
about an hour before dinner and were shown through
the works by the manager. They then proceeded up
to the Tollgate canyon where an excellent spread was
enjoyed. The afternoon was spent in games.

B. A. Russell Resigns.
B. A. Russell, has resigned his position as cashier
of the Sheridan State Bank, Sheridan, Mont., to enter
the Federal Reserve offices in Minneapolis.

A Millionaire With 8,000 Partners.
O. O . M c In ty r e , in L e s lie ’s.

Laurel State In New Home.
The Laurel State Bank, of Laurel, Mont., moved into
its new building recently. A formal opening was held at
which time about 400 local people visited the bank. Fa­
vors of boxed candy and cigars were given the visitors.
The exterior of the building is of brick and stone and
the interior is finished in marble. Off the main lobby in
addition to the cashier’s private office is a private office
for the use o f customers, and at the rear of the building
is a room for the use and convenience of the ladies. The
vaults are of fire and burglar-proof construction, of re­
inforced concrete and steel.
The institution was organized in 1906 by W . R. West­
brook, who was in control until his death. About a year
and a half ago it was purchased by the John F. Sinclair
Company, of St. Paul, Minn. The present officers are
W . J. Carroll, president; John F. Sinclair, vice presi­
dent; C. H. Stillwell, cashier, and Norman Lunde, as­
sistant cashier.

Urge Thrift Among Children.
The education committee of the Montana Bankers’
Association held a meeting recently at the Union
Bank and Trust Company, Helena, to discuss the promo­
tion of thrift among the children of the state. Members
of the committee are W . C. Rae, R. O. Kaufman,- chair­
man ; N. A. Telyea, J. L. Steinbarger, F. W . Hall, F. T.
Sterling and C. W . Butler.
The committee plans to get in touch with writers of
text-books and publishing companies and have the more
practical side of financial questions discussed. The books
willl then be introduced into, the public schools and the
pupils will learn the principles of saving and investment.


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Federal Reserve Bank of St. Louis

Archie M. Andrews used to be a Chicago newsboy. He
stands as a living example of the truth that no circum­
stances, no conditions are so hopeless that one cannot rise
above them.
I Archie M. Andrews sold newspapers up to the age of
sixteen. Then the doctors thought he had consumption
and stopped him. So he hiked west and became a banjo
teacher^
He lived outdoors. He was fond of nature. He loved
the mountains, the woods, the sea. At twenty-one he was
pronounced physically fit and returned to Chicago to take
an office boy’s job at $5 a week.
He is, now, at forty, a multi-millionaire. But that to
him is the least of all his accomplishments. Once Andrew
has achieved a thing, he loses all interest in it and is off
like a shot for another difficult nut to crack.
Andrews did not go to the top in a sudden flight. Twice
he was on the high road to wealth when misfortune in­
tervened. Once it left him with $1.65 and a smile. An­
other time he salved $1,000 out o f the wreck. With this
it might be imagined he went back into business. But
he didn’t ; he took a three months’ trip to Europe, landing
back in Chicago with a five-dollar bill. There he took off
his coat and went to work.
He is head of a banking business that extends to every
large city in America. Every man who works for him a
year becomes automatically interested as a partner in his
business. There are now in various houses more than
8,000 clerk partners. In ten years Andrews will be fifty
and he is going to turn the business over to them.
Andrews has no formulas for success. He believes
chiefly in work and confidence. Education he believes to
be a great asset, if rightly employed.

October, 1920

THE

N O RTH W ESTERN

BANKER

Arnold Joins Greene and Co.
John Jacob Arnold who recently resigned as super­
visor, International Business Department, Bank of
Italy, San Francisco, Cal., to become affiliated with
the house of Greene & Company, Inc., Investment
Securities, Boston, has been named General Manager
of that organization.
Mr. Arnold, who is prominent in banking circles
throughout the entire United States, has specialized
on foreign finance for more than a quarter of a cen­
tury. For 28 years he was affiliated with the foreign
department of the First National Bank, Chicago, and
for eight years was vice president of that institution
in charge of its international business. His services
will prove most valuable to the H. V . Greene Com­
pany in the handling of banking securities, especially
thor>e dealing with foreign finance.
In addition to his position with the Greene Com­
pany Mr. Arnold was recently elected a director and
vice president of the Bankers Union for Foreign
Commerce and Finance, Inc., a $15,000,000 corpora­
tion being underwritten by the H. V . Greene Com­
pany, that will shortly enter the field of international
banking.
The Bankers Union for Foreign Commerce and
Finance is a unique organization— as are all that are
sponsored by the H. V . Greene Company— inasmuch
as the stock is being ofiered direct to the man and
woman of average means throughout the United
States and Canada. A double purpose is served
through this, method of stock disposition.
First:
the savings of the average man are invested in chan­
nels that will produce the highest dividends, consis­
tent with safety; secon d: an interest that is country­
wide, throughout the United States and Canada, will
be engendered in world commerce and world pros­
perity. Other officers and directors of the Bankers
Union are:
Henry Brunner, president; George Ed Smith, vice
president; Henry V . Greene, vice president; Frank S.
Perkins, treasurer; W illiam F. Kenney, secretary;
Fairfax S. Landstreet, Dwight E. Austin and William
,F. O ’Connor, K. C. directors.

New Savings Department.
The Savings Department of the First National
Bank in St. Louis has opened its new banking rooms
at 511 Olive street.
A new effect in bank decoration has been obtained
by the architect. The pure white ceiling with its con­
ventional designs of classical character, shading into
the cream white of the upper walls, forms a pleasing
contrast to the restful light green marble effect of the
side walls lower down. •
The building formerly occupied by the Savings De­
partment will be redecorated and remodeled and
thrown into one with the present general banking
rooms.
The four floors of the building at 309 Broadway and
the five floors of the building at 511 Olive street, will
both be gone over by the architect with the idea of
making all this space available for housing the differ­
ent activities of the bank.
The total amount 'of floor space thus made avail­
able will place the First National Bank in St. Louis
easily in the lead in this particular as the largest bank
west of the Mississippi River, a distinction which it
already enjoys in the total amount of its resources.

The
First N ational Bank
of Boston

T ran sacts co m m e rc ia l b a n k in g
bu sin ess o f every n a tu re
M ak e it you r N ew E n gla n d
corresp ond ent

Capital, Surplus and Profits

$ 37,500,000

Serving Am erica’s
Basic Industry
H alf of America’s population is engaged in
farming. The farmer’s job is the vital, primal
provider and feeder of all the other jobs. His
product is the basis of all business.
The Atlantic National Bank offers an intelli­
gent service in the marketing of farm products.
It is actively engaged in banking for the New
York wholesale district.
It becomes, there­
fore, a most helpful institution to W estern
banks desiring a New York connection with
facilities for direct service.

National Bank
257 Broadway-Opposite CityHall
N E W Y O R K C IT Y

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Federal Reserve Bank of St. Louis

79

80

THE

N O RTH W ESTERN

BANKER

October, 1920

NO. D AK O TA BAN K N EW S
Bank Deposits Show Decrease.

Reward for Robbers.

Deposits in 'state banks decreased $3,988,963.26 from
May 4th to June 30th it is shown in the report of O.
E. Lofthus, state examiner.
The decrease in deposits during this period is only
indicative of the usual decrease in deposits during
the time between which crops are planted and the
harvest.

The North Dakota Bankers Association has taken
steps to end bank robberies in the state.
A reward of $500 is offered for the capture, dead or
alive, of any person caught blowing up a bank safe
or otherwise robbing the bank. An additional $100 is
offered for the capture of each additional member of
the gang doing the same job.
Experience has shown that bank robberies are done
by two or more men, and that in’ most cases the work
is observed by some person. It is felt that the offer
of a reward will stimulate action on the part of the
townspeople. It also is felt that signs, making known
the reward offer, hung in pool halls and other con­
spicuous places, will have a salutary effect upon those
contemplating bank robbery, for they undoubtedly
will realize that some one with a sawed-off shotgun
may take aim at them.

Hold Annual Meeting.
The stockholders of the State Bank of Olga, N. D.,
recently held their annual meeting. C. B. McMillan
was re-elected president and Phil Gendreail was
elected vice president to succeed John Reid, who is
now making his home in British Columbia. Mr.
Reid still retains his interest in the bank.
. The new quarters which have recently been oc­
cupied are more commodious and will be a great help
to the officers of the institution in caring for the grow ­
ing business.

Over-Payment On Income Tax.
An over-payment averaging $50.00 each b y forty
banks in North Dakota, coming within the scope of
the state income tax act, was revealed by examination
by income tax experts of the reports.
This was disclosed in a letter recently addressed
to the bankers of the state by the income tax com­
mittee of the North Dakota Bankers Association, made
up of J. J. Farley, H. P. Beckwith and W . C.
McFadden.
The committee advises the establishment by the
association of an income tax department in charge
of federal and state income tax experts, the cost to be
apportioned to banks associating in the maintenance
of the department.
Over-payments of state income tax of about $20,000,
it is asserted by the committee, have already been
revealed. Additional over-payments are expected to
be found.
'-“ W e know of six or seven banks that have paid
fees to federal income tax experts, in an amount in
the aggregate sufficient to pay the annual salary of a
capable income tax expert,” the committee tells the
bankers in support of the plan to engage experts for
year-around service.

Deposit Money in North Dakota State Bank.
It was recently voted by the Chicago Federation of
Labor to withdraw its funds from local banks and
deposit them with the Nonpartisan League bank in
Bismarck, N. D.
The resolution calling for removal of the Federa­
tion’s funds recommended that all locals of the Am er­
ican Federation of Labor take similar action.
It was adopted after Carl Thom pson of Bismarck
told the meeting that it would cost $20,000,000 to
harvest the wheat crop of the northwest and that
labor must co-operate with farmers in financing the
harvest or the farmers would have to go to capitalistic
W all Street.


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Federal Reserve Bank of St. Louis

$100,000 Into State Coffers.
The industrial commission has transferred $100,000
out of the earnings of the Bank of North Dakota to
the state treasurer to be used to take care of the
interest on the $2,000,000 of bank bonds that will be­
come due on January 1, 1921, and July 1, 1921. These
bonds are drawing interest at the rate of 5 per cent per
annum, $50,000 becoming due on each of the above
dates.
The industrial commission has mailed notices of
its action to the state board of equalization in order
that this body may eliminate this item from the
coming tax levy.
This action of the industrial commission shows
that the Bank of North Dakota has been self-sus­
taining from the start. The tax-payers of the state
have not had to provide a cent for this institution,
either for its organization or the payment of interest
on the bonds which provided capital for the bank.
The industrial commission used $35,000 of the money
appropriated by the legislature for the organization
of the bank, but this was returned to the state
treasury several months ago.

Bank Sold.
The State Bank of Morton county was recently sold
to the Farmers Equity State Bank of Mandan, N. D.,
by W . A. Lanterman, president and owner of ninety
per cent of the stock.
The State Bank of Morton county was organized
in 1892 and was the third bank established west of
the Missouri river. It has deposits of approximately
one-half million dollars.
W illiam Maas is president of the Farmers Equity
State Bank. A. H. Peterson, cashier of the State
Bank of Morton county becomes cashier of the
Farmers Equity Bank.
The Farmers Equity Bank recently completed a
new building, which is one of the finest bank buildings
in the state.

October, 1920

THE

N ORTH W ESTERN

81

BANKER

New Mantador Bank.
The Guaranty State Bank of Mantador, N. D., with
a capital stock of $15,000, owned largely by farmers
in the Mantador vicinity, recently opened for business.
Officers of the new bank are J. F. Hoeck, president ;
A. C. Kapsner, vice president ; E. J. Kapsner, cashier ;
M. A. W eber, assistant cashier.
E. J. Kapsner comes to Mantador from Hankinson,
where he has served as cashier of the Farmers and
Merchants Bank of . that city.

Banks Gain In Resources.
In the annual report of State Examiner O. E.
Lofthus. the resources of the state banks and trust
companies o f . North Dakota are said to have in­
creased 27 per cent, or $31,311,976.38 in two years.
The gain in resources, while resulting partly from
the natural growth of the banking business in the
state, is also due to the addition of 11 state banks, as
against consolidations, liquidations and nationaliza­
tions.
The report shows that the 573 state banks have
capital of less than $25,000. There are 91 with a
capital of $25,000; 69 with a capital of $20,000; 148
with a capital of $15,000; 334 with a capital of $10,000
and one with a capital of $5,000. Others of this num­
ber are capitalized at odd amounts.
A bove the $25,000 mark 10 have a capital of $30,000;
five a capital of $40,000 ; 24 a capital of $50,000; one
of $75,000; eight of $100,000 and one of $200,000. The
total paid in capitalization is $12,413,000.

"H e ’s
From Missouri,
Too”
"In my thirty-nine
years’ connection
with this hank, we
have sent many
items to you and
have always re­
ceived prompt and
efficient service,”

are the words of a
St. Louis banker
who sends us Memphis B/L drafts.
A record of thirty-nine years of "always prompt
and efficient,” entitles us to lay claim to "GOOD
SERVICE,” even if those are often vainly used
words nowadays. It shows you that your Memphis
B/L drafts can be routed to us with the assurance
of best and quickest results for you.

U nion & P lanters B ank
& T rust Company
ORGANIZED 1869

North Dakota News and Notes.
The First National Bank, Buffalo, N. D., now has
deposits of $371,982.48. The officers of this growing
institution are E. E. More, president; W . H. O ’Neil,
vice president and S. G. More, cashier.
Articles of incorporation have been filed for the
Cathay State Bank, Cathay, N. D., capital stock of
$15,000. The officers are Chris Bahr, Cathay; John
Held, Cathay; R. M. Stangler, Jamestown, N. D.
The Farmers and Merchants Bank, Leeds, N. D.,
has just completed the installment of an electric burg­
lar alarm system.
B. F. Crabtree has received an appointment as
revenue tax collector at Valley City, N. D., and will
leave Ellendale, N. D., soon to enter upon his duties.
His place in the First National Bank is being taken
by Allan Crabtree.
After a month’s vacation at the old home in Iowa,
John Campbell is back at his position in the First
International Bank, Sherwood, N. D.
L. I. Nicholson has resigned his position as assist-

Save $20.00 on Typewriters
We can furnish late model rebuilt Under­
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W A N T E D — Agents for our lines

OFFICE SPECIALTIES COMPANY
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Federal Reserve Bank of St. Louis

THE B/L BANK
OF CHICAGO
W it h th e p r o s p e c ts o f b u m p e r c r o p s , th e s tr a in
o f fin a n c in g on th e b a n k s o f th e c o u n t r y is
g r e a t e r th a n e v e r b e fo r e .
W e s o lic it in q u ir ie s r e g a r d in g fa c ilit ie s f o r IM ­
M E D IA T E C R E D IT a n d D I R E C T C O L L E C ­
T IO N a t M IN IM U M COST o f B ill o f L a d in g
ite m s on a il r e c e iv in g p o in t s in th e U n ite d
S ta tes a n d Canada..
S u ch an a r r a n g e m e n t p r o v id e s th e s im p le s t a n d
m o s t c o n v e n ie n t, a s w e ll a s e c o n o m ic a l, m e th ­
od o f c r o p fin a n cin g .

UNION TRUST COMPANY
CHICAGO
S T R I C T L Y A C O M M E R C IA L B A N K
M e m b e r F e d e r a l R e s e r v e S y ste m

THE BILL OF LADING BANK
OF CHICAGO

82

THE

N O RTH W ESTERN

BANKER

October, 1920

ant cashier of of the Farmers Bank, Crary, N. D., and
has assumed his work as cashier in the D oyon Bank.
F. T. Luros has taken Mr. Nicholson’s place in the
Farmers Bank.
About $1,000 in money and stamps was secured by
robbers who raided the Farmers and Merchants State
Bank, Calio N. D., recently.
The Tow er City State Bank, Tow er City, N. D.,
has just moved into its new home. The building cost
$ 2 0 ,0 0 0 .

Ole Gremsgard has accepted a position with the
Citizens State Bank, Rugsby, N. D.
James R. Y oung of Powers Lake, N. D., will take
a position with the Bank of Park'River, Grafton, N.
D. Mr. Y oung has been in the western part of the
state for several years and has held positions with
the First State Banks of Grenora and Powers Lake.
The First National Bank building, Drayton, N. D.,
is nearing completion. This will be one of the finest
bank buildings in the state when completed.

The New Y ork Correspondent of Over 4000 Banks

M.
A. Borchert, until recently assistant cashier of
the State Bank at Regent, N. D., has purchased the
interests of A. W . Swengel in the Esmond State Bank,
Minnewaukan, N. D. Mr. Swengel, it is reported,
will go to California.
Currency and bonds amounting to between $3,000
and $4,000 were secured by robbers who broke open
the safe of the First State Bank at Brantford, N. D.,
recently.
The total deposits of the First National Bank,
Grand Forks, N. D., now ■aggregate $2,377,075.33, ac­
cording to the latest statement made.

Bankers Placed by Walters.

W o r ld -wide distributors o f highgrade securities : Bonds, Short Term Notes,
also Preferred Stocks and Acceptances. Cor­
respondent Offices in more than 50 leading
cities.
Bankers o f this seçtion are invited to use
National City Company service through one
o f our following conveniently located corres­
pondent offices.
C H IC A G O , D AVEN PO RT, IO W A
M IN N EAPO LIS, S T . PAUL, O M A H A

The following bankers have been placed in their
respective positions by The Charles E. W alters Com­
pany, of Omaha: Opal Kennedy, bookkeeper, Seven
Valleys State Bank, Calloway, Nebraska; R. A. W oslager, bookkeeper, Persia Savings Bank, Persia, Io w a ;
V . D. Parsons, assistant cashier, Mankato National
Bank, Mankato, Kansas; S. B. Nelson, cashier, W al­
nut State Bank, Walnut, Illinois; A. E. Graves, as­
sistant cashier, Farmers State Bank, Ft. Morgan,
Colorado; Vera Baldwin, bookkeeper, Farmers and
Merchants National Bank, Oakland, Nebraska; Edith
Phillips, bookkeeper, Anamoose National Bank, Anamoose, North Dakota; Edw. Kehmeier, bookkeeper,
First National Bank, W inner, South Dakota; Ina Belle
W heaton, stenographer, Valley State Bank, Lake
Andes, South Dakota; F. L. Gallagher, Surety State
Bank, Osceola, Nebraska.

New Bank at Scotland.
The state banking department has authorized the Farm­
ers and Merchants State Bank, of Scotland, S. D., to
begin business. It is to fill the vacancy made by the recent
failure of the Bon Homme County State Bank of that
place.
Christian Hirning, who has been one of the examiners
of the state banking department, will become cashier of
the new Scotland institution.

Director of Clarence Bank Dies.
George Edwin Smith, a director of . the First Na­
tional Bank, Clarence, Iowa, died at his home recently.

R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E


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Federal Reserve Bank of St. Louis

T W E S T E R N B A N K E R w h en w ritin g to ou r advertisers.

THE

October, 1920

N O RTH W ESTERN

83

BANKER

Brennen Wins Trophy.
John H. Brennen, assistant cashier of the Atlantic
National Bank, New York, won the trophy offered by
the National Association-of Credit Men in their recent
nation wide drive for new members. The trophy was

^

Travel
Anywhere, AnyW ay
in financial comfort and security with

A BA

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the BEST funds -for travelers
S AFER than money. Self-identifying. Accepted

universally. Through the Bankers Trust
Company’s foreign service travelers upon their
arrival in Europe may exchange the "A ’ B'A”
chwyiw which they take with them for other
"A* B•A” Cheques payable in pounds, francs, lire,
etc., at the rates current on the day of exchange.
offered for the man obtaining the greatest number
of new members in the United States. Members ac­
ceptable must be well rated firms, and Mr. Brennen
obtained 103, an exceptional achievement. Mr. Bren­
nen also won the New Y ork drive coincident with the
national effort. The National Association now has
over 40,000 members.

Issued in denominations o f $ 1 0 , $ 2 0 , $ 5 0 and
$ 1 0 0 in convenient leather wallets— use yourself
and recommend to your customers.
For full information write to

BANKERS TRUST C O M P AN Y
New York City

American Banks in Europe
in Europe
are branches o f the Company and
also independent banking units.
T

h i s

c o m

p a n y

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o f f i c e s

Completely equipped for all phases
o f modern banking, they function for
American bankers and business men as
th eir ba n k s, acting as their financial agen-

cies abroad, and handling their transac­
tions in the American way.
These offices, in fostering mutually
beneficial relations between Europe and
America, are in an especially favorable
position to serve financial and business
interests on both sides o f the water.

Our booklet, “ Specialized Service to B a n k s o u tlin e s the services which
this Company, through its foreign offices, can render your institution.

Guaranty Trust Company of N ew York
N E W YORK
LIVERPOOL

LO N D O N
HAVRE

Capital & Surplus $50,000,000


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Federal Reserve Bank of St. Louis

PARIS .
BRUSSELS
C O N STAN TIN O PLE

Resources more than $800,000,000

84

THE

BANK

NORTHW ESTERN.

BANKER

EQ U IPM EN T

Mason City Concern Takes On Big Contract.
A banker at Harris, Iowa has designed and patented
a new system of making and keeping records of auc­
tion sales. The system is so good that the LeMars
Printing Company of Mason City, has.taken on the
manufacture and sale of it.
The device combines the good features of auction
sales books and records and has several other features
not contained in any other system.
The outfit consists of a set of waterproof envelopes
ruled and printed to form. Inside this envelope is
placed a carbon, a second sheet and a press board.
W hen the sale is being clerked the items and amounts
are listed on the envelope which makes the record in­
side. One or more copies may be made if desired.
In the case where the sale is a combination sale two
or three records may be made at one writing.
The envelope is water, wind and snow proof, and
as they are “ loaded” before they are taken out to the
sale, it is not necessary for any changes to be made
out in the wind and rain. If two clerks are on the
job when one envelope or sheet is filled it is easily
removed for settlement. Reference may be made to
any sheet without disturbing any of the others. In­
dexes and settlement sheets are provided where de­
sired.
The system is known as the Flex-Tic and is being
widely sold and inquiries have been received from all
over the country.

Hanover National Statement.
The statement of condition of the Hanover National
Bank, of New York, at the last call shows the insti­
tution to be in excellent condition. Resources total
$187,674,761.96 while combined deposits amount to
$161,962,905.59.

Union Trust Company, Chicago.
An interesting statement o f the condition of the
Union Trust Company, Chicago, was issued at the
last call, showing a comparison of the deposits for
the past fifteen years, which in 1906 amounted to $11,337,955.23, while today they total $44,607,884.66.
Total resources are $56,074,958.67.

October, 1920

SECTIO N

DISTRIBUTION OF SHORT HAUL PRODUCTS.
(Continued from page 18.)
this: Newark is only about 10 miles from New York
City yet the gross charge of shipping one hundred
pounds of freight from New York City, including
teaming charges from both ends, is 91 cents by rail­
road, and may take about three days. The same
load can be handled by truck for 15 cents and only
takes a few hours in which to do it. Such an example
is typical of all our large cities.
The question of terminals is of domestic and munic­
ipal importance. The New York “ W orld ” published
an article recently in which it stated that terminals or
markets in New Y ork City alone would save the
consuming public, $150,000,000 per year in truckage
and wastage of food stuffs, and that the city would be
able to net 12 per cent per year from rental on its in­
vestments. Such figures are astounding; yet they are
unquestionably true.
Agriculture is the barometer of Am erica; then, pro­
duce! But, if that which is produced is allowed to
rot— to waste, why produce! Delays of about three
days from a country station to a city market, a dis­
tance of about ten miles, would certainly answer the
oft repeated question: “ W h y good eggs go w rong?”
It was only the other day that I was told that the
shipping merchants of one of our largest cities had
relief of terminal congestion.
A t many railroad
freight terminals trucks stand in line as long as 42
hours awaiting “ cargo.” Is that efficiency? And we
wonder why we have to pay, pay m ore!
M otor trucks are not “ knocking” the railroads,
neither do the railroads reject motor trucks, on the
contrary, they welcome them. But, let us not forget
that when we talk “ Ship by Truck,” “ M otor Trucks
for Short Hauls,” and “ Good Roads for M otor Trucks,”
that we must have depots, terminals and “ highway
freight yards’’ in our cities for the distribution of food
at^a living price, and through which “ short haul traf­
fic” can make connections for other points.
Mass production, with quantity transportation and
efficient distribution of short haul products through
“ highway freight terminals” will solve our national
economic ills.

AMERICAN FIXTURE COMPANY
Kansas C itv . Missouri

N ew 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
Decorations
Floors
. Furniture
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Lighting
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Federal Reserve Bank of St. Louis

October, 1920

THE

N O RTH W ESTERN

85

BANKER

The Lightning— a Bank Machine
— has similarly d oom ed to the discard the laborious hand
m ethod of paying co in — change making.
T he operation is simply one light pressure o f the keys, and the correct
change is instantly ready to fall into the teller’s cupped hand at a mere touch
of the finger tips.

M any seconds per operation,

T here is no coun ting, no

countless minutes o f y o u r clients’
time, many valuable hours a day of
your bank’s time, are saved.

holding up o f a long line.
Clients
appreciate the improved service af­
forded by a Lightning.

Speed—Efficiency —A ecu racy
T h e Lightning affords greater speed, m ore efficiency and absolute accur­
acy. It is the first simple keyboard, practical, absolutely satisfactory machine of the kind.

It is the way used by modern, enterprising banks everywhere.

The

Lightning, like the typewriter and thé adding machine, has com e to stay.
The size is 9 % x l2 x l5 y i in. Guaranteed for ten years. Write
us and our representative will call or we will ship direct.

L ig h tn in g C o in C h a n g e r C o m p a n y
D ep t. 11, 34-36 W . Lake S t ., C h icago, 111.
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Federal Reserve Bank of St. Louis

THE

86

N O RTH W ESTERN

BANKER

October, 1920

The New Edison
The Only Phonograph Which

R e-Creates Music

The Ownership o f an Edison Is a
Mark o f Love for Fine Music
O

W N I N G an Edison is m ore than ow n in g a phonograph. Edison
ownership marks on e as knowing g o o d m usic and being satisfied
with nothing less. W h e n y ou open the case o f the Edison you
can k n ow that your guest has classified you w ith those w h o appreciate a
higher quality o f art.

No Needles to Change—Even Records of A ll Other Makes
Sound M ore H um an W hen Played on the New Edison.
T h e on ly phonograph w hich recreates m usic. T h e on ly phonograph
w hich can undergo the pitiless com parison w ith the human v oice. B uy an
Edison and be proud o f your m usic.
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Distributors
D E S M O I N E S ------- I O W A --------S I O U X C I T Y

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Federal Reserve Bank of St. Louis

October, 1920

THE

N O RTH W ESTERN

87

BANKER

BANKER-FARMER CO-OPERATION IS BIG
SUBJECT AT A. B. A. CONVENTION.
(Continued from page 65.)

Section Headquarters.
Headquarters hotels for the convention will be as fol­
lows: New Willard, ex-presidents, officials, members
of the executive council of the American Bankers’ Asso­
ciation and the State Secretaries Section.
Hotel Washington: National Bank Section; Trust
Company Section; Clearing House Section.
Hotel Raleigh: St^te Bank Section; Savings Bank
Section.
The Secretaries’ Section will be in the Fairfax Room
of the New Willard Hotel, which is located immediately
opposite the general registration headquarters.

State Secretaries’ Section.
The program for this section has been announced by
Sec. M. A. Graettinger, of Chicago, as follows: Mon­
day, October 18th, 11:30 a. m. Call to order by the presi­
dent; annual address by the president, Robert E. Wait,
secretary Arkansas Bankers’ Association; appointment
of committees; report of the secretary-treasurer, M. A.
Graettinger, secretary Illinois Bankers’ Association.
1 :30 p. m. Report of the committee on forms, Chairman
W . C. McFadden, secretary North Dakota Bankers’ As­
sociation; report of committee on somplified income tax
forms for banks, Chairman W . F. Keyser, secretary Mis­
souri Bankers’ Association. “ Sightseeing in Europe,”
George D. Bartlett, secretary Wisconsin Bankers’ Asso­
ciation.

Foreign Trade Plans.

Legal Blanks
Our stock is full and complete— every form right up
to the minute, complying with the latest enactment of
the General Assembly. There is no possible require­
ment in the way of a standard Legal Blank for use in
this state that we cannot supply you with.
W e call your attention to our facilities for handling
bank work as we have a most complete printing and
binding department.

Agents for Byron-Westons
Typo-Count Ledger
which is made exclusively for

Machine Bookkeeping Sheets
Giye us a trial order or send for sample of Demonstra­
tion Sheet on this paper to prove that it will give ex­
cellent results.

J. H. Welch Printing
Company
1313 West Locust Street, Des Moines, Iowa

On the third day of the convention, Chairman John
McHugh, of the committee on commerce and marine,
will report on the activities of that committee, especially
as to the general reception given by those most interested
to the idea of a foreign financing corporation, which was
passed upon favorably by the American Bankers’ Asso­
ciation last April. At that time a special committee of
three to interest those most interested, especially other
organizations, was appointed, and progress in that direc­
tion will no doubt be reported.

Registration Detail.
Registration can be made at the Hotel Willard, Red
Room ; Hotel Washington, Lounge, and Hotel Raleigh;
Lounge.
Delegates should register immediately upon their ar­
rival— upon doing this, they will be given credentials, in­
cluding official badge and invitation to social functions.
The Washington convention committee will issue a
daily bulletin to facilitate attendance at the various func­
tions, and starting Wednesday the association will issue
a list of the registrations daily.
The office of the general secretary will be located in
the Cabaret room, mezzanine floor of the New Willard.
The executive council will have its first meeting on
Sunday, and most o f the committees are scheduled for
meetings Monday.

Interesting Places.
The national capitol naturally holds unending interest
for Americans. There is especially a fascination for the
banker delegate in taking a glimpse at the wheels of the
government. Its many civic advantages also. charms,
lure the clubman, automobilist, pleasure seeker, student,
homemaker and investor.
As a residential city, Washington stands paramount in
all America. Its broad paved streets, overhung with
the foliage o f numerous and rare trees forming complete

BANK SAFES
SAFE

- D EPO SIT

V A U LT

- BOXES

- E Q U IP M E N T

Morris Sanford Company
Successor to George A . M u llin Co.

CEDAR RAPIDS

-

IOWA

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Federal Reserve Bank of St. Louis

THE

N O RTH W ESTERN

Individualize Your Stationery
llllllllllllllll

c o r n WORK SATISFIES TO
AN UNUSUAL DEGREE the de­

mand for individuality in letter­
heads, drafts and checks.
{[Let us supply you with sam­
ples.—Write today.

ESTAB LISH ED .! 856

Iowa L ithographing C ompany
DES MOINES
G. H. Ragsdale, President
E. G. Ragsdale, Secretary
H. B. Ragsdale, Treasurer

BANKER

October, 1920

archways, are unquestionably the most beautiful in Amer­
ica. Hundreds of miles of the most modern highway
stretch out in all directions, leading to many points of
historic interest, seashore resorts with excellent fishing
and bathing, and to charming mountain spots.
The main attractions of Washington, however, are al­
ways its governmental buildings. As the visitor emerges
from the beautiful Union Station his attention is first
directed to the United States Capitol, but a few blocks to
the south. This massive range of buildings on Capitol
Hill, including the senate chamber, house of representa­
tives, supreme court, statuary hall and the dome, covers
nearly four acres. Its cost, including the land, was about
$16,000,000, and was seventy-four years in process of
construction. To the north nearest Union Station is the
senate wing of the capitol. The senate chamber is lo­
cated in the center of this building. The cast iron ceil­
ing paneled with stained glass bears the coat of arms of
each state.
Mt. Vernon, the home of George Washington, is easily
reached by boat or trolley, the visitor using the latter
route may stop over, in Alexandria long enough to visit
historic Christ Church, and there step from the cool
shade o f this old building to the modern war creation of
a great 'ship-building plant which has made of the former
quiet town of Alexandria a thriving industrial city. An
excellent combination is to go by boat to Mt. Vernon and
return by trolley.

A Wonderful Growth.
From the chaotic condition into which it had
drifted in 1915, a condition that had run the deposits
down to approximately $8,000, in the checking and
savings accounts, the Terril Savings Bank, Terril,

M A S S E Y 'S
THE PIANO AND EDISON CENTER OFJOWA

LYON & NEALY
K IM B A L L
BU SH & LANE
EM ERSON
B E H N IN G
SCHAFF BROS
W ASHBURN

«tlif»____

ANGELUS

PLAYERS

The Completion of Our Beautiful

“ N ew T

e m p l e of

M

u s ic ”

We are now showing in our “ New Home,” the largest, finest
and most complete display of high grade, world renowned
instruments ever assembled in Iowa.
Farmers Savings Bank, Terril, Iowa
It is necessary to visit eight of the leading piano Houses in
New York and Chicago to see the “ Foremost Makes of the In­
dustry” shown here for your benefit. Every one a leader.

The Largest

N E W E D IS O N DiaD
Tcnd DePt-1*1 Iowa
Call or Write for Catalogue

The M ASSEY PIANO
811 W A L N U T STR EET

DES M O IN E S

Wholesale and Retail— Iowa’s Distributors for the
W orld’s Greatest Makers
------ ‘ TO W A ’S L A R G E S T P I A N O H O U S E "

~

Iowa, wras carried through this most trying ordeal and
out on the roadway to a splendid success by the efforts
of Louis Koon, the present cashier.
The most remarkable part of Mr. K oon’s achieve­
ment was that he had never before had any banking
experience. He came direct from the farm and began
the taék of untangling the affairs of the institution.
W ith personal attention given to every detail, inject­
ing personality into his every move and effort and in
the end establishing a confidence in the integrity of
the bank’s management, he gained the present results.
Today, after five years of most trying experiences,
this institution is on a solid financial basis, has the re-

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Federal Reserve Bank of St. Louis

THE

October, 1920

N ORTH W ESTERN

89

BANKER

Does Your Bank Building Fill the Bill as
a Community Building?

T E R R IL SAVINGS BANK, T E R R IL IOWA.

It is essential that every bank building should be a community building whether in a small town or
large city.
The small town bank should appeal to customers interested in agricultural matters and every­
thing connected with the bank should be arranged for their convenience. The large city bank should be
arranged for the convenience of an entirely different class of business.
A visit to the above bank would convince you that not a dollar has been spent unwisely in the
construction of the building. Every dollar spent was for the betterment of the institution itself and
at the same time, to the best interests of the customers.
W e have proven to the bankers throughout the country that we save them money and further,
we have proven that we have the ability to design and plan the right building for the continual
growth of their business.
Let us talk to you about bank buildings before you select your, architect.

TH E LYTLE COM PAN Y
J. A. RAVEN, President.

SIOUX CITY, IOWA

Architects and Engineers of Complete Bank and Office Buildings.

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Federal Reserve Bank of St. Louis

90

THE

N O RTH W ESTERN

BANKER

October, 1920

W AN TED
Bankers to Finance Prosperity
HERE is a prospective borrower in your territory, a man who has given ample
proof of thrift, integrity and ability. He has played an important part in
putting over one of the biggest deals ever consummated in the United States.
The enterprise he now proposes is backed not only by excellent security, but is
one which promises exceptional returns to some discerning banker.
T

This borrower’ s name is A. Farmer. You know him well. He has been your
customer and your client. At present he is the possessor of considerable wealth in
the shape of the biggest crops ever taken from his farm. But what he needs is a
new bam— or perhaps it is a granary— or a new home which will raise his effi­
ciency, an emergency grain bin, or an adequate tool shed wherein to keep valuable
machinery.
Now when he comes to you for a loan, and before telling him that money is
tight, consider the situation in a long-headed way from your own viewpoint. For
your prosperity, as a banker, is indissolubly involved.
If barns, granaries, corn cribs, implement
sheds, and other farm buildings on the farms
in your territory are inadequate, there will
result an absolute and heavy monetary loss.
If the farmer cannot store, he will lose part
of his crops and be compelled to accept less
than potential value for another part. The
loss is a definite sum subtracted from com­
munity wealth, which is the gauge of bank
prosperity. When you help the farmer con­
serve his resources vou also conserve your
own.
Or take it another way. When the farmer
adds a new bam or new home to his land,
that land forthwith increases in value out o f
all proportion to the cost of the improvement.
Its market value, the price for which it can
be sold, takes a big jump. That is a pecu­
liarity of improving the farm which need
not be argued. The important fact is that
it makes your loan to the farmer about the
most secure investment possible. Then

there is the valuable human equation, the
improved morale of the farmer himself.
There is another phase of the matter to
consider, too. Building at this time, contrary
to what may be your impression, need
not be on the basis of fictitious or doubtful
values. Your clients can build at an abso­
lutely safe cost—by buying from the Gordon
Van Tine Company. So doing, they deal
directly with the manufacturer, with an
organization doing a big volume business
and with a source of supply which insures
immediate delivery.
This matter of adequate buildings on the
farm is so vitally important, and the advan­
tages we can offer the builder so outstanding
and manifest, that we have a most earnest
desire to place full information in the hands
of every bank in the country. Our free books
on building will accomplish this result and it
will be a pleasure to send copies if you will
but write us that they would be acceptable-

,

G o r d o n -V an T in e Co.
E S T A B L IS H E D

IB 6 5

S a tis fa c tio n G u a r a n te e d o r M oney Back
Resources over $1,000,000.00
R E F E R E N C E S : A n y Bank in D aven port; Continental and C om m er­
cial N ational Bank, C hicago, 111.; N ational C ity Bank, N e w Y o r k C ity

7235 C ase Street


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Federal Reserve Bank of St. Louis

D a v en p o rt, Io w a

THE

October, 1920

N O R T H W ESTERN

BANKER

spect and confidence of the public and has made a
gain in business that is little short of phenomenal.
From the eight thousand dollars in deposits in the year
1915, the totals have steadily increased each year and
today the totals show $300,000 with every indication
of the same progress.
An additional feature of the bank’s progress under
Mr. K oon ’s guiding hand is the splendid new build­
ing now occupied by this institution. Decision to erect
this building was arrived at in April, 1919, and the
actual work was commenced in August, 1919, and the
premises were ready for occupancy in February this
year.
The cut shown in this article is that of the old quar­
ters which have been replaced by the new building.
In the full page advertisement of “ The Lytle Com­
pany” is shown a cut of the new building. The build­
ing is a model, down-to-the-minute banking institu­
tion. Every facility and convenience was thought of
and incorporated into its construction. The design
was originated and laid out by “ The Lytle Company
of Sioux City, Iow a,” and no detail has been over­
looked. The building is faced' with terra cotta and
blue-black rug face brick. The interior is finished in
Madra Cream marble and quartered white oak, fin­
ished in silver gray.
The lobby is spacious, giving ample room for all
demands. A ladies’ rest room is one of the features,
equipped with a writing desk and other appropriate
furniture and with every com fort possible, telephone,
toilet, etc. A room for men is also furnished in like
manner. Private coupon booths have been installed
just off the safety deposit vault. A large front room
just as you. enter has been furnished with table and
chairs and is used by the town council, Commercial
Club and other public meetings. •A consulting room
is located just back of 'the cashier’s desk space, with
private telephone booth opening both from this room
and from the banking department.
The building is well lighted and ventilated and was
built with a view to the future, amply caring for all
banking needs for years to come. In fact, the “ Terril Savings Bank’s new home” is about the “ last
w ord” in modern banking institutions.
Officers of the institution are:
J. H. McCord,
president; Eugene Dodge, vice president; and Louis
K oon, cashier. Associated with Mr. K oon in the ac­
tivity of the bank are Ralph J. Kurtz and B. Barthol,
assistant cashiers. Associated with the officers on the
board of directors are R oy Lewis and Francis Johnson.

Three Thousand
Banks!
More than three thousand banks have
placed the modernizing of their interiors
in our hands during the past half century.
That is far more than any other company
has modernized. This experience is the
greatest available.
Thè Fisher Company plant at Charles
City is the largest bank fixture plant in
the W est. It offers you every modern
equipment and facility and insures the ut­
most in service.
The experience accumulated in modern­
izing three thousand banks, and our great
factory facilities, are at your service.
Several of the thousands of banks we
have modernized are near you. W e will
gladly send you a list of them if you care
to inspect them and investigate our work
and service.
Our staff of experts is at your service.
A consultation will not place you under
the slightest obligation.
W rite us with todav’s mail.

*P e a il s e ,; R o b i n s o n ,- A n d -S p b a g u e * L andscape A rchitects And Ar c h ite c t s 703 Youngerman Building« Des Moines« Iowa

* D e s i g n : Pr iv a t e Es t a t e s , R e s i d e n c e s ,F a r m s t e a d s ,* * Fa l m

B u i l d i n g s , Fa

il s

,

in s t it u t io n s

,

c e m e t e r ie s *

- S c h o o l s L a n d S u b d iv is io n s , Athletic

grounds^

*

HBanlt U ixtu rQ O deadcruarters

*.

Gharles QUy, rfoiva

* GOLF LINKS, BUILDINGS,AND ALL THE DETAILS OF *
* Tow n and c i t y Pl a n n in g . * * * *
...............*

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Federal Reserve Bank of St. Louis

91

92

THE

N O RTH W ESTERN

BANKER

October, 1920

Goodyear Mileage Costs Less Today
Than Even Before the W ar
niiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiitiifiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiJiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii|iiii|iiiiii||i

TIRE PRICES AND TIRE COSTS-BEFORE THE W AR AND NOW
lllllllllllllllllllllllllllllllllllllllllllllllllll|||||||||||||||||||lilllllll1llllllllllllllHlllllllllllllllllllllllllllllllllllllllllliflllllllllll||IIIlllllIllllllllllllllllllllIlllllllllllllllllllIII!lllllllllllllllIIUilllIIII!IIIIIII||l|ll|IHI.l|l|Il|l|1|l|llairlllllllllia

494%
B E G IN N IN G O F W A R

t—

rn — n

x

I 152%

— r

Note that long staple cotton, which
hasadvancedb9b per cent since 19lb,
now accounts fo r bO per cent o f the
manufacturing cost o f Goodyear
lw «I— Tires, whereas crude rubber, which
has declined somewhat, accounts
fo r only 221-2 per cent o f this cost

/
/

/
è

WHOL

sSs£
_
2
a

O

>F/i( >01

Æ A R T IR E

-

______

1 A \ ERAG EPR K E O F !

AV ÌRAGE ( OST Ol CRUD£ RUBB! R

1910

1911

I9U

1915'

1914

1915

1914

1917

1910

1919

(920

1921

190

I9M

10)2

1913.

1914

1915

19)6

1917

1918

1919

1920

I92J

IlIllllllllllllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlllllllllllllllllllllllllIllllllllllllllllllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIItllllllllllll

Condensed into the above chart
is the record of a contest waged
by the Goodyear factories since
1914, to hold down tire prices in
the face of steadily rising manu­
facturing costs.
So persistent and extensive have
been some of these advances in
manufacturing costs that only a
real test of every sinew of factory
ability has !ufficed to offset them
materially.
How effectively and consistently
Goodyear has counteracted the
situation is shown in the present
prices of Goodyear Tires, now only
moderately higher than in 1914
and actually one-third lower than
in 1910.

Perhaps the most significant work
done by Goodyear during this
period, however, is seen today in
the markedly increased ability of
Goodyear Tires to deliver excep­
tional mileage.
The challenge of opposing condi­
tions has been answered with
definite improvements in the
making of these tires, so that users
report that their cost averages less
per mile in 1920 than even- in
1914.
Because it is well and widely
known that Goodyear mileage is
maximum mileage obtained at
minimum cost, more people ride
on Goodyear Tires than on any
other kind.

T he G oodyear T ire & R ubber C ompany
Offices Throughout the W or Id

GOODYEAR

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Federal Reserve Bank of St. Louis

October, 1920

THE

N ORTH W ESTERN

93

BANKER

Uncle Sam Guards Pest Remedies iirst Introduction
By J. K. Haywood
Chairman Federal Insecticide and Fungicide Board

T F IR ST blush the connection between the banker
and manufacturer and the enforcement of the fed­
eral insecticide act appears to be rather remote, but
a more careful consideration shows that these classes of
men, along with other citizens of the country, must cer­
tainly be affected by an increased production of food,
clothing, tobacco, etc. They must, along with all other
citizens, be interested in any regulatory law, some of the
provisions of which are in essence public health measures,
and they must necessarily be interested in any law which
tends to increase the agricultural wealth of the country by
increasing crops and live stock production. They, along
with the agricultural community, are reaping the benefits
secured by the proper enforcement of this federal law.
Briefly, this act aims to prevent the sale o f insecticide
and fungicide preparations not properly branded as to
strength and purity, or incapable o f accomplishing the
results claimed for them.
It has been estimated that the annual losses of plant
products from insect pests alone in the United States is
at least $1,104,869,300. It has been further estimated
that the shrinkage in stock values due to insect pests is
more than $175,000,000. If losses due to fungous dis­
eases are included, the total annual loss is in excess of
$1,500,000,000. Since a considerable part of this loss can
be avoided by the use of insecticides and fungicides which
will do what is claimed for them, it is at once evident that
the enforcement of the insecticide act is a prime factor in
increasing food products and in increasing our supply of
grains, cotton, wool and tobacco.
Through their investments and loans for agricultural
purposes and through their financing of manufacturing
operations, the bankers of the country come into direct
contact with the people primarily affected by the enforce­
ment o f the insecticide act.
Any law which will reduce the enormous losses of agri­
cultural products mentioned, directly benefits the bankers
of the country by increasing the security for their loans.
If the agricultural borrowers are able to save their crops
and live stock through the application of safe and effec­
tive remedies, they will be better able to meet their obliga­
tions at the banks and will be encouraged by their suc­
cess to increase their acreage, resulting in an increased
demand for the preparations they have found so valuable,
with a consequent advantage to the manufacturers. The
increased sale of their products by manufacturers will
likewise encourage and necessitate increased equipment,
calling for more capital and increased business for the
bankers. The increased prosperity of the farmer is thus
shared by the banker and the manufacturer and finally by
the consumer, who will have more and better food and
clothing.
Each bale of cotton saved from destruction by the cot­
ton boll weevil, each pound of tobacco saved from the
tobacco worm, each bushel of wheat or potatoes and each
barrel o f apples saved from the insects and diseases which
attack them, every head of cattle, hogs and sheep saved
from the ticks and diseases which waste their energy, is
an addition to the wealth and commerce of the country,
affecting the prosperity of each individual in the nation.
While it is primarily an agricultural law, the insecticide
act reaches into the field of commerce, and beyond that,
even, into the homes of the people.
Features of this law have a salutary affect on the every-

A

Best “ Repeat” seller on the market.
Only practical device for clerking
farm sales regardless of weather con­
ditions. Single, duplicate or tripli­
cate copies. Here it is.

TRADE*

M ARK

A u c tio n S ale O u tfit
100 printed Kraft sale envelopes; 100 second
sheets; 20 high grade pencil carbon; 10
Bristol Boards; 1 SPECIAL, Striped Wood
Clip Board Cap Size, will not warp or era ck
Patented Sept. 7, 1920

Order N o w
Shipped on Approval

LeMars Printing Co.
Mason City, Iowa

You will use no other
after you have seen this.

CLIPLESS PAPER FASTENER CO.
N EW TO N . IO W A

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Federal Reserve Bank of St. Louis

94

THE

Due Diligence means
using “ the best means
known for the purpose”
—which is the effective
cancellation of every
Check, Draft and Cer­
tificate of Deposit.

NORTH W ESTERN

The name “ Cummins”
means the right ma­
chine at the right price.
Every machine backed
by our 33 years expe­
rience.

4 MACHINES IM 1
Our Cummins System Special answers the
demand of banks for a machine to do all
the canceling and dating work effectively
by perforations. Changes are instantly
made— nothing to break or get out of order.
1 Full canceling die to be used on all
checks, drafts, certificates of deposit,
etc., containing the bank’s A .B .A . number.
(2)

O For use to advantage on customers’
papers. Shows complete cancellation
but not actual payment to the bank itself.
O A thorough cancellation for notes that
have been renewed, not “paid.”

A Perforates the date alone— on deposit
slips, letters, receipts— everything.
Sketch of dies
% size

Cummins
P erfora tor C o.
Formerly

T h e B. F. Cummins Co.
4742

Ravonswood Ave.
Chicago, III,

FREE TRIAL
Our Cummins System Special sent
on 30 days’ free trial; 3% discount
for full payment at time of accept­
ance, or quarterly installments.
Price $82.50, f. o.b. Chicago. No obligation
on your part if machine is not satisfactory.

Ultimately There W ill
Be a Service Station
in Every Progress­
ive T o w n
Any City in Iowa that does not have a first
class drive-in Filling Station, please correspond
with this office, advising us of local conditions
and consumption.
This company is made up of Iowans ; men who
have been successful in other business enter­
prises.

THE COMMUNITY
SERVICE STATION CO., Inc.
391 P u tn am Building, Davenport, Iowa


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Federal Reserve Bank of St. Louis

BANKER

October, 1920

day life of every citizen. The inspection o f disinfectants
and remedies for various household pests touches the
daily life of every man, woman and child. Is there an
epidemic of disease in the community? Is a contagious
disease prevalent in the schools? A good disinfectant is
required. Have mosquitoes, flies, roaches, ants, fleas or
other noxious insects found their way into the home?
They can be overcome by the application of proper rem­
edies. How does the dairy which furnishes the milk for
your table prevent flies, and how do the dairymen clean
their utensils ? By the use of proper insecticides and dis­
infectants. The officials charged with the enforcement of
. the insecticide act have been inspecting and testing these
preparations so that, when you go to the store and buy
them, you will not be wasting your money, and, still more
important, so that you will not lose valuable time attempt­
ing to control them by the use of low-grade and worthless
preparations.
Not the least important of the good results obtained
through the proper enforcement of this act is the effect it
has in protecting the honest manufacturers of insecti­
cides and fungicides, including disinfectants, against the
illegitimate practices of dishonest manufacturers. As an
example of how manufacturers themselves view this,
some extracts are quoted from the speech, recently made
at a meeting of the Insecticide and Disinfectant Manufac­
turers’ Association, by the representative o f a large disin­
fectant concern:
“ During the year which has recently come to a close,
manufacturers of disinfectants in this country have been
faced with perhaps more vexatious problems than have
ever before confronted them, certainly since this associa­
tion has been in existence. Notwithstanding the many
obstacles encountered, the industry as a whole has forged
ahead, and along some lines has made marked progress.
Much deception has been eliminated and in this connec­
tion due recognition must be accorded the federal insecti­
cide and fungicide board of the department of agricul­
ture and their corps of inspectors in the field who have
been most vigilant. Generally speaking, the public is
more enlightened today than for years past on the true
meaning of disinfectants,' antiseptics and deodorants and
the results to be expected from their use. It is becoming
more difficult as time goes on for the unscrupulous to
practice deceit. This new order of things is working out
to the advantage and profit of those whose methods are
honorable and straightforward, and the earnest, whole­
hearted support of the members of this association is
solicited to the end that our industry may be put upon
the high plane where it rightfully belongs. When we
look back twenty years and call to mind the wording of
the average label attached to disinfectant containers, we
can appreciate how necessary was some form of govern­
ment regulation, such as the insecticide act of 1910, to
have us realize how we were transgressing the bounds of
propriety and using the major part of the dictionary to
describe the goodness of our products and denouncing
those of competitive makes. Happily a new era has
dawned, and nowadays we strive to say as little as pos­
sible on our labels and issue printed matter descriptive of
our goods which is symbolic of modesty itself.”
It will thus be seen that the enforcement of the insecti­
cide act of 1910, which appears at first glance to afford
protection only to the farmer, orchardist and stock raiser,
in fact affords protection to every citizen of the country.

October, 1920

THE

N O RTH W ESTERN

BANKER

95

BANK BURGLARS
Working Overtime
Your vault door opened, deposit box locks destroyed, property of your customers in tbe boxes gone— the
result of a visit to your bank by burglars.

And it may happen in YO U R bank— any night!

Daylight stickup men enter your bank to get your money and to get Y O U if you resist them.
The W . C. Dillon patents cover electrical and mechanical equipments

which

prevent

this.

They

protect

you against daylight holdups, also protect you against night burglars, protecting the property in your vault,
and save you the labor, time, annoyance and arguments with your customers in checking up and straightening
out the affairs of your bank after a robbery.
saved

The Peoples

September 14, 1920.

Bank Co., Kalida,

Ohio,

Eleven hundred banks now have our equipment.
September

13,

and

the

First

National

Bank,

Our protection
Moulton,

Iowa,

W rite us for particulars.

Dillon Lock Works
F O R T D O D G E , IO W A

That N ew Bank—

J

Send us the plans of your new bank and let
us advise with you about the heating plant.
Our advice and plans are free.

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Federal Reserve Bank of St. Louis

|

THE

96

N O R TH W E STE R N

BANKER

October, 1920

REMEDY OF HIGH INTEREST RATES IN JUST
PLAIN THRIFT.
(Continued from page 26.)
sistance to price advances, and the majority of our people
took advantage of the opportunity to indulge in profiteer­
ing to some degree.
W e are not worse than our fathers, or less moral
than we were in 1914; but the war destruction of cap­
ital has subjected us to greater temptation. Such de­
struction cannot be measured in money loss. W hat has
boosted prices to the point of almost paralyzing the
world’s money markets is the destruction of mines and
manufacturing plants, of railways, and of stocks of
goods and materials. Then, too, the loss of four
years’ time by the 15,000,000 men under arms was in
itself equivalent to the non-production or the destruc­
tion of, say about $60,000,000,000 of goods and prod­
ucts. It was this destruction, positive and negative,
of products and producing capacity that took the
balance wheel off from prices, and made profiteering
possible.
You may fairly tell your borrowers and depositors,
then, that the remedy for the tightness of money lies in
their own hands. If the American people were to mark
down prices until the latter bore the same relation to
costs of production as in 1914, this strangling money
market could not possibly last six months. Think for a
moment what even a 10 per cent decline in the average
price level of all goods and commodities would mean. It
would reduce the market value of our aggregate yearly
production by fully $5,400,000,000 and this in turn would
reduce the amount of bank loans necessary to handle our
business by roughly $3,500,000,000.
Let us observe, too, that commodity prices are steadily
falling, and that the tightness of the money market is
curing itself. Economic laws are accomplishing what
men failed to do. Prices exceeded the bounds of fairness
and reason, and thereby so raised interest rates that the
money market strangled business activity. Producers
and merchants, when they could no longer borrow, be­
came forced to finance themselves by pressing goods and
products for sale. This in turn is breaking prices; and
by the latter part of this year, or the early part of next,
the lower prices should relieve the money market. Al­
ready since last spring commodities and materials, as
shown by Dun’s and Bradstreet’s index numbers, have
gone down more than 10 per cent, and we may be sure
that good prices will follow. When this occurs, the
amount o f bank loans required to finance the typical
business will be diminished, and interest rates will fall.

DO YOU, MR. BAN K ER , KNOW :
that we have, right here in stock, a complete line of
Vault Doors, Burglar and Fire Proof Safes, Bank Fur­
niture of all description, Filing Cabinets in Wood or
Steel, Deposit Boxes, Loose Leaf Devices and Com­
mercial and Fancy Stationery.
our motto.

Over-night service is

Let our man call on you and serve you.

McNamara Office Supply Co.
505-507-509 Locust St.

D es Moines, Iowa

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Federal Reserve Bank of St. Louis

October, 1920

THE

NORTHWESTERN

BANKER

97

Belter Bank Buildings
It will *be worth your while to be in­
form ed on our up-to-date building
m ethods— a system that produces
maximum efficiency in the design,
construction and e q u i p m e n t of
banks.
Better Buildings in Less Time at Lower Cost

THE W. W. BEACH CO.
ARCHITECTS
ENGINEERS

BUILDERS
SIOUX CITY, IOWA

Better Bank Buildings
In Larger Quarters
Bankers are most cordially
invited to call when they visit
Des Moines— see our new
store— get acquainted with
our enlarged stocks.
The
new location is

414-416 Seventh St.
One block north of the old
store— a convenient place to
drop in and supply your
needs.

„

T h e -S a fe -C a b in e t c a r ­
r ie s th e C la s s A la b e l
o f th e U n d e r w r it e r s
L a b o r a t o r ie s .'

Zaiser stocks include a com­
plete line of office and bank
furniture,
Safe-Cabinets,
Shaw-Walker filing cabinet^
and supplies, Invincible Safe­
ty Deposit Boxes, stationery,
typewriter and general bank
supplies.
.

h mi ha
n ou se

built.

th a t
ia a z

r p w ip p

service

A Check Is an Order on Yon to Pay
A f t e r y o u p a y it, it b e c o m e s a r e ce ip t.
I t is y o u r r e c e ip t t h a t y o u h a v e p a id a s in s tr u c te d .
I t is y o u r c u s t o m e r ’ s r e c e ip t to k e e p in d e fin ite ly to
s h o w a t a n y tim e th a t he p a id t h r o u g h y o u .
E v e r y c h e c k th a t p a s s e s t h r o u g h y o u r h a n d s s h o u ld b e
c a n c e le d e ffe c t iv e ly — K I L L E D — o n c e a n d fo r a ll tim e.
T h e r e is b u t o n e S U R E , P E R M A N E N T , P O S IT IV E m a n ­
n er— P E R F O R A T E
It Is Paid

w it h an
A M E R IC A N
D A T IN G
CANCELER

When
By W hom

T h e A M E R IC A N is th e o n ly m a c h in e m a d e w it h e a c h
a n d e v e r y p a r t in t e r c h a n g e a b le .
T h e A M E R IC A N is th e o n ly m a c h in e e m p lo y in g o u r
p a te n te d S T E E L D ie w h e e ls .
T h e A M E R IC A N c u t s m o re p a p e rs a t a tim e th a n a n y
o t h e r m a c h in e a n d r e q u ir e s 33 1 -3 % le s s p o w e r t o d o the
w ork.
T h e A M E R IC A N is S P E E D I E R , S T R O N G E R , E A S I E R ,
B E T T E R , L O N G E R -L I V E D , C H E A P E R .
I n v e s t ig a t e t o d a y — N O W — le t u s p r o v e o u r sta te m e n ts.
O ur s p e c ia l J a n u a r y o ffe r w ill in t e r e s t y o u .

THE AMERICAN PERFORATOR CO.
L a r g e s t E x c lu s iv e P e r fo r a tin g M a c h in e M a n u fa c tu r e rs In
th e W o r ld .
M ain Office an d W o r k s , 6 1 9 -6 2 9 W . J a c k s o n B lv d .
_________________________
C H IC A G O

Y o u r B a n k
Is reflected by the sta­
tionery you use.
We
specialize in printed and
engraved

letter

heads,

statem ent folders and
booklets.

Service, Quality
and Right Prices
Alw ays
Printing - Binding - Loose Leaf Devices
Designing - Engraving - Embossing

TH E HOM ESTEAD GOM PANY
NINETEENTH AND GRAND

Des Moines, Iowa

DES MOINES, IOWA

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Federal Reserve Bank of St. Louis

THE

98

NORTHWESTERN

October, 1920

BANKER

OFFICERS FARM MORTGAGE BANKERS.

Confidential Listings
OF

Bank Shares Solicited
18 years as a country banker,
two years as bank examiner,
two years as officer in large city
bank especially fits me to act
as a bank broker.

No Publicity-—Dependable Service
— Confidence Respected

Claude F. Anderson
Banks and Bank Stocks
438 Securities Bldg.
Omaha

'T ’HERE A R E T W O
factors that determine the
value o f a publication as an ad­
vertising medium.
Editorial excèllence will indicate
its influence with its readers.
Membership in the Audit Bureau
of Circulations indicates its busi­
ness ethics and methods.
The first shows whether the pa­
per is worth reading.
The second shows h o w many
people read it.
In both the advertiser is vitally inter­
ested.
The Northwestern Banker invites the
closest scrutiny. Its A. B. C. report is
accessible to advertisers.

At the annual convention of Farm Mortgage Bank­
ers’ Association of America at Kansas City, Septem­
ber 16th, the following were elected for the ensuing
term of one year:
For president, Kingman N. Robins, Associated
Mortgage Investors, Rochester, N. Y.
Vice presidents, L. W . Clapp, First urust Co.,
•Wichita, Kans.; J. W . Wheeler, Capital Trust & Sav­
ings Bank, St. Paul, Minn.; Frank Hayden, Guaranty
Bank & Trust Co., Memphis, Tenn.
For members of the board of governors for the term
of four years, H. C. Glenn, Temple Trust Co., Temple,
Texas, and Geo. F. Heindel, Phoenix Trust Co., Ot­
tumwa, Iowa.
The board of governors apointed to fill vacancies
for the ensuing year, Joseph T. McNary, State Sav­
ings & Trust Company, Indianapolis, Ind.; Byron H.
Davis, Davis-Wellcome Mortgage Co., Topeka,'
Kans.
■ Following are the other members , of the board of
governors for the current year: W . T. Day, Day &
Hansen Security Co., Spokane, W ash.; R. O. Deming,
Deming Investment Co., Oswego, Kans.; F. S. Gum,
Gum Brothers Co., Oklahoma City, Okla. ; R. B. Bal­
lard, Drake-Ballard Co., Minneapolis, Minn.; H. J.
Curry, Pearsons Taft Land Credit Co., Chicago, 111.,
G. R. Ellis, Empire Loan & Trust Co., Americus, Ga.;
W. G. Breg, Breg, Garrett & Co., Dallas, Texas; F.
W. Thompson, Merchants Loan & Trust Co., Chicago,
m .

J. E. Maxwell, retiring president of the Farm Mort­
g a g e Bankers’ Association of America, was presented
with a superb gold watch and chain by the member­
ship of the association at the annual convention at
Kansas City. O. M. Corwin made the speech of pres­
entation in a most acceptable manner. In speaking
of Mr. Maxwell he said: “ He has been a great bene­
factor to mankind; first, in assisting the farmer to
get money to develop his farm ; and secondly, in being
able to place the hard-earned savings of thousands of
investors in one of the best classes of securities ever
known.
“ He believes in co-operation and was one of the
first to recognize the benefits to be obtained through
a closer association of farm mortgage dealers. He
was a charter member of the Farm Mortgage Bankers’
Association and has continuously since its organiza­
tion in 1914, been one .of its most trusted and valued
officers.”

BANK HELP
I f y o u w a n t a b a n k er o f 2 2 years exp erien ce to find y o u a
p osition o r a g o o d em p lo y e e w rite

CLAUDE F. ANDERSON
Bankfe and Bank Stocks

438 Securities Bldg., Omaha

Lawn Tents
Camping

Tents, Awnings
DESMOINESTENT
& AWNINGCO.

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Federal Reserve Bank of St. Louis

October, 1920

THE

NORTHWESTERN

Northern Trust Company.
The statement of The Northern Trust Company,
of Chicago, issued recently shows deposits of
$41,192,399.50.

Merchants Loan and Trust.
Deposits of the Merchants Loan & Trust Company,
of Chicago, as shown by a recent statement are
$102,052,301.79.
.

99

BANKER

BANK POSITIONS
If you want a bank position or need experienced bank
help, write

The Charles E. Walters Company

1422-30 First Nat’l Bank Bldg.

Omaha, Neb.

For Bankers and Their W ants
This department of TH E N O R TH W ESTE R N B AN KER is
to assist SUBSCRIBERS in obtaining goods or service hard
to find. It is free. Use it. A 8 K US, as we can tell you
where to buy anything you need in your bank or for your
bank. TE 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.

Wanted— Position as cashier or assistant cashier in a good
country bank by a young married man 26 years of age with
five years’ banking experience. Can furnish first-class refer­
ences and can invest small capital. Address No. 2429, The
Northwestern Banker.— 10.
___________________________ _
F o r S a le — Set of dark golden oak bank fixtures, including 26
Wanted
— Position as assistant cashier or teller in country
foot counter, desks, chairs, cabinets, etc. 'Address First
bank-in Iowa or eastern South Dakota, by young man with
National Bank, Fulda, Minn.— 9-10-11.
_______________________
three years’ general banking experience. Excellent references
F o r S a le — Moving into our new bank building, we have a
furnished. A ddress No. 2431, The Northwestern Banker.— 10.
complete set of genuine walnut bank fixtures with plate glass
Position Wanted as cashier of country bank by married man
top for sale. Dark golden oak'finish. 34 feet long, 8 feet high
36 years old with several years’ experience as cashier. A d­
with 3 feet 7 inch counters, desks, chairs, cabinets, also Mosdress 2430, The Northwestern Banker.— 10-11-12.
ler manganese screw door safe, 33x20x22 inches, and about.
Have you ordered your July, 11120, Land, McNally Bankers
100 safety deposit boxes. Address Citizens Savings Bank,
Directory?— 10-11.______________________________________
.
Hanlontown, Iowa.— 9-10-11._____________________________________
For Sale— Complete set bank fixtures in excellent condi­
P o s it io n W a n t e d as bookkeeper in country bank. Have had
tion. Address American Drug & Press Association, Decorah,
three months experience in small bank doing all around work.
Iowa.— 10._______________________
■
Can operate posting machine, also run typewriter, but have
Wanted— A second-hand screw door safe. Address Winneno shorthand experience. Graduate from W aldorf Lutheran
College at Forest City, Iowa. Can speak Norwegian. Refer­
shiek County State Bank, Decorah, Iowa.— 10-11.
ences furnished on request. Am 20 years old and single.
For Sale— Complete set of oak bank fixtures with glass and
Address Oscar Nelson, Wallingford, Iowa.
grill work above counter. W ill fit room 25 by 30, or larger;
P o s it io n W a n t e d by married man, age 30, as cashier or as­
filled with cupboards and drawers under counter; two check
sistant cashier. Eight years experience. Can invest. Excel­
desks. A ll in good condition. For detailed description write
lent references. Address No. 2423, The Northwestern Banker.
Citizens First National Bank, Storm Lake, Iowa.— 10.
— tf._________•
____________
Every Banker should have a July, 1920, Rand, McNally’s
W a n t e d — Position as cashier or assistant cashier by a mar­
Bankers Director. Order yours today. Rand, McNally & Co.,
ried man, age thirty. Eight years’ experience. Can invest.
B. G. Boyle, Editor, Dept. C-8, Chicago, 111.— 10-11.
Excellent references. Address No. 2381, The Northwestern
Banker.— T. F.
For Sale— 18-foot straight fixture with counter, two wicket,
quartered oak, also wall check desk, very good condition. W ill
W a n t e d — Position as cashier or assistant cashier by a mar­
sacrifice to move at once. Address Calumet State Bank, Calu­
ried man, age 30. Eight years’ experience. Can invest. Ex­
met, Iowa.— 10.
cellent references.
Address No. 2381 The Northwestern
Banker.— T. F._______________________________
For Sale— Moving into our new bank building we have a

W a n t e d P o s it io n as cashier or assistant cashier by a mar­
ried man, age 30, eight years experience. Can invest. Ex­
cellent references.
Address No. 2423, The Northwestern
Banker.— 9-10._____________________________

H a v in g moved into our new building we have a complete
set of bank fixtures for sale. Dark golden oak 26-foot counter,
desks, chairs, cabinets, etc. Address First National Bank,
Fulda, Minn.— T. F.
W a n t e d — Position as cashier or assistant cashier by a m a r ­
ried man, age thirty. Eight years experience. Can invest.
Excellent references. Address No. 2381, The Northwestern
Banker— t f . ________ _____ ________________ ■ ■■ ■ •
______________ ■
P o s it io n W a n t e d as cashier or assistant cashier by a mar­
ried man, age 30. Eight years experience. Can invest. Ex­
cellent references.
Address No. 2412, The Northwestern
Banker.— tf.

complete set of genuine walnut bank fixtures with plate glass
top for sale. Dark golden oak finish, 34 feet long, 8 feet high
with 3 feet 7-inch counters, desks, chairs, cabinets ; also
Mosler manganese screw door safe 33x20x22 inches, and about
100 safety deposit boxes. Address Citizens Savings Bank,
Hanlontown, Iowa.— 10-11.

For Sale— Having moved into our new building we have a
complete set of bank fixtures for sale. Dark golden oak 26foot counter, desks, chairs, cabinets, etc. Address First N a­
tional Bank, Fulda, Minn.— 10-11.________________________________
Wanted — Medium-size vault door. Address Goodall, Jew­
eler, Ogalalla, Neb.— 10-11.________________

W a n t e d — W ork in bank during winter months. Have had
several years’ experience.
Address No. 2432, The North­
western Banker.-10.

Wanted — A young man with some active banking exper­
ience as teller. Position now open. Address No. 2433, The
Northwestern Banker.— 10.
_

W a n t e d — Position as cashier or assistant cashier by a mar­

Bank For Sale— On account of poor health I will sell my

ried man, age thirty.
Excellent references.
Banker.— 10.

Eight years’ experience. Can invest.
Address No. 2423, The Northwestern

^

controlling interest in one of the best dividend paying coun­
try banks in Iowa. Address No. 2434, The Northwestern
Banker.— 10-11-12.

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Federal Reserve Bank of St. Louis

100

THE

NORTHWESTERN

INSURANCE

BANKER

October, 1920

SECTION

Psychology of Selling Life Insurance
B y D r. J o h n A . Stevenson

Director Càrnegie Institute,:Pittsburg
ALESM ANSHIP is based on an understanding
of human behavior, how people act under cer­
tain conditions or in certain situations. You per­
haps can cite situations now in which you would be
fairly certain of the response which most men would
make. Imagine abnormal individual before you. You
are certain what response most men would make if
called a liar; most men would respond alike to the
mistreatment of a child, to a hungry child, an insult
to our wife, to our daughters. Not many of us en­
joy having someone speak of our watch as a turnip.
Very few of us resent a well-phrased compliment.
In all your experience have you ever met a man who
objects to words of appreciation? W e all act funda­
mentally alike when something especially complimen­
tary is being said about us. It may be said in passing
that most individuals are interested .in the fundamen­
tal things.
Let me suggest some selling arguments or plans
which will probably always get a uniformity of re­
sponse. The speaker developed this argument which
has been used with success. Insurance and the idea
back of insurance is fundamental to our social life. Ob­
ligations that are created must be paid for, whether
by the one incurring the obligation or someone else;
in other words, somebody pays for insurance.' The
question I am trying to get you to decide on, Mr.
Prospect, is “ Are you going to pay for the insurance
or are you going to allow your widow and children, to
pay for it, through deprivations and by taking from
them certain privileges that they might otherwise have
had?”
Supplementary to the statement, I say, “ Mr. Pros­
pect, you can take care of this obligation by making
a small annual deposit, but if you do not do this, re­
member that your wife and children will always be
forced to pay the face of the policy in deprivations.
Look at it any way you wish. If you had protected
them for ten thousand dollars, they would have ten

S

If
If
If
If
If

your checks are raised
they are forged
the payee’s name is changed
the endorsements are forged
your bank suffers a loss

*

thousand dollars less deprivation. Are you going to
refuse this small annual policy because ‘ Somebody
pays for insurance’ ?” Use this in your sales talk and
you will understand better what is meant by uniform­
ity of response.
When you put up this proposition to a prospect,
you know what his answer will be. Can he deny that
somebody pays for insurance? I know what a pros­
pect is going to say to this; whether I sell him the
insurance is a different proposition, but I am making
my entering wedge through his interest. Then, I
might use this illustration: “ Mr. Prospect, would
you like to perpetuate your present earning power to
your family as long as they live? As long as they
live?” Well, you know what his answer must be to
that. He must say yes. Probably his interest is now
aroused.
“ If you could make arrangements to have your sal­
ary paid to your family after death, would you do it?
Would you like to make sure that your daughter and
son would have an education, no matter what hap­
pened to you? Would you like to know that you
could pay your inheritance taxes and interest with­
out encroaching upon your invested capital? Would
you like to know that there is a way? Are you going
to provide for your wife as long as you live or as long
as she lives?” Wouldn’t these questions likely get a
uniformity of response? There is no use in giving a
long list of these typical situations which you as a
salesman create. You use these suggestions or ap­
proaches every day. You may have wondered why
certain questions get such a uniform response.
What is the cause of this uniformity in human be­
havior? It is due to the fact that the human mind
has certain innate or inherited tendencies which are
the essential springs of action. There are certain in­
herited tendencies which make us fundamentally alike.
W e might say it is instinct that is the prime mover of
human behavior. W e come into this world laden with

W ill Your Present Check
Protector Pay the Loss?

If not and you are interested in “ T H E O N LY CHECK PROTECTION T H A T RETURNS TH E
D O LLARS TO Y O U R BANK ACCOUNT W H E N YOU H AV E A LOSS” ask us about National
Surety Forgery Bonds. There is a size to suit every business.

W M . B. JOYCE & c o .
ST . PAUL

M IN N E A P O L IS

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Federal Reserve Bank of St. Louis

October, 1920

THE

NORTHWESTERN

a great many of these characteristics forming and
influencing our behavior. Our behavior is in accord­
ance with these instincts. How about education? you
may ask. Education does tend to modify our funda­
mental instincts, but, after all, it is really founded upon
one of these fundamental instincts.
Instinct may be defined as an inherited disposition;
any inherited disposition. It may be described as the
tendency to act in a certain manner. An exact defi­
nition of an instinct is difficult to give. If we disre­
gard or overlook the inherited disposition, we take
away one of the biggest motives and driving powers
back of the sale. If we can get this motive force from
the instincts irrigated into our sales talk, it will be a
big factor in getting the prospect to act.
What are some of the instincts and how may the
salesman appeal to them? The instinct of eating is, of
course, fundamental. No doubt, you have all had the
experience of getting a favorable response from a pros­
pect after a luncheon or dinner. You seem to get his
interest better; things seem to move along easier.
Next, let us consider the instinct of acquisition or
possession. There are a lot of men who take insurance
merely because they like to acquire it, and there seems
to be no other reason for it. A lot of people about once
a year call to get some additional insurance. They
like to acquire several policies. This is a form of the
hoarding instinct.
There is the instinct of approval. All of us like
the approval of our friends. The speaker remembers
that quite a disturbance was raised in a certain com­
munity because several wives, in discussing the ques­
tion of insurance, found that one of the women’s hus­
bands carried a large amount of insurance. The other
wives were interested to know why certain other hus­
bands didn’t carry the same amount of insurance;
they wondered why it was that one husband thought
enough of his wife to have $75,000 and another only
$25,000 and another $10,000.
The instinct for mastery and leadership may be ap­
pealed to in the sale. Show what other people, the
leaders of the community, have taken out. Your pros­
pect wishes to be known as one of the leaders. To
some, this is a very strong and forcible appeal. Many
companies and agencies put out a list of men who
carry a certain amount of insurance with their com­
pany. This list is used by the agent in soliciting. The
salesman says to his prospect, “ Here is a list of the
prominent men who carry a certain amount of insur­
ance with our company. I want you on this prom-

BANKER

101

OUR INTENTION
has been to acquaint every bank in Iowa with the
new department of our business— “ Child’s Endow­
ment— a plan originated by Western Life.

OURPURPOSE l

r

is to demonstrate td.you the benefits of Child s
Endowment” in encouraging thrift and savings
and to co-operate with you in interesting your
customers in persistent savings accounts. No mat­
ter whether you have been selling life insurance or
whether you have not—when you understand and
see the benefits of “ Child’s Endowment” you will
be interested.

..

THE RESULTS

.

-

9

0 k

W

will be satisfactory to you and you will be glad
you investigated “ Child’s Endowment.”
Over 200 Iow a B an k s have en joyed
th is resu lt since M a y 1, 1920.

COUPON .

Automobile Insurance
Liability
Collision
Fire

Send me full particulars about “ Child’s Endow­
ment” to be combined with Savings Bank Ac­
counts and your terms to bank agencies.

Property Damage
Cyclone
Theft

Name

Have splendid proposition for good live agents

Address

Write or See

State Automobile Insurance Association
306 Securities Bldg.— H O M E OFFICE— Des Moines, Iowa

Name of Bank

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Federal Reserve Bank of St. Louis

THE

Ì0 2

NORTHWESTERN

A m erican B onding and
Casualty C om pan y
Sioux C ity, Iowa

H O M E OFFICE: SIOUX CITY, IO W A
Gus A. Elbow, President

IOWA’S FIRST MULTIPLE LINE
INSURANCE COMPANY
Assets March 31, 131» - - - - $ 1, 422, 85$ .«!
$800,000 in approved securities on deposit with Iowa In­
surance Department for protection of Policy-holders.

THE OLD L I N E '

CEDAR R A PID S
State Agencies Open in Three
W estern States.
A G o o d chance for Bankers w ith
A b i li t y o f M a n a g e m e n t
G J Z J Q a iM n s .

J ir « s

C J B . S lxxòoc J cz ,

S e c y .

HOME OFFICE : CEDAR RAPIDS, IOWA

BANKER

October, 1920

inent policy-holders’ list. Let me have your applica­
tion for seven or twelve or fourteen thousand dollars,”
or whatever amount is necessary to put him on the
list. This may be the only sales suggestion or argu­
ment that is used. The prospect looks over the list
and sees displayed a galaxy of the prominent men in
the city, and he buys because there is a direct appeal
to this instinct of leadership. He likes to be classed
with the leaders.
The sex instinct is one of the most fundamental in­
stincts. The protective side of the sex instinct may be
appealed to in selling insurance to men. It is the
power coming from this instinct which causes the sale
of so many income policies. Males all show anxiety
in making adequate provision for their families. W e
appeal directly to the protective side of the sex in­
stinct, and we get the desired response.
How can we utilize these instinctive interests? If,
in your sales talk, you do not in some way or other
make a direct appeal to the prospect’s eating, ac­
quisitive, manipulative, sex, fighting or parental in­
stinct, you have overlooked the great action-producing
motives in salesmanship. Somewhere in your sales
talk make an appeal to the prospect’s home, family,
love of approval, and desire for mastery.
Suppose we take for granted that the salesman has
made appeals similar to these we have just discussed.
What then?
The prospect does not buy unless he has the op­
portunity. There are many salesmen who present a
proposition that is or is not especially appealing to the
prospect. The prospect may be absorbed in other
matters and does not wish to buy. The idea of buying
must he fanned and strengthened and made to take
the place of other ideas. It must be made more im­
portant to the prospect than any other idea. It must
lpom big and take on great significance. Salesmen
must manipulate ideas in such a way that the pros­
pect will yield to them. Do not confuse the prospect
by talking about first one thing and then another, but
stick .to the idea that insurance is the most, important
thing in the world for him. If the prospect brings
up other ideas, pass over them easily, and quickly
come back to your one definite proposition which you
have put up to him.
Don’t bring in conflicting ideas. Every time you
bring in a conflicting idea, you create a condition of
indecision and inaction. Don’t get your prospect where
he wants to buy insurance and then introduce con­
flicting ideas by bringing in a variety of policies.

BE A PATRON OF YOUR LOCAL BANK

BUILD YOUR DEPOSITS BY SAVINGS
BE A DEPOSITOR

THE ROYAL UNION MUTUAL LIFE INSURANCE COMPANY
DES MOINES, IOW A

T

AKE from your bank deposit the small necessary amount annually to make life insurance
an important part of your estate. Life insurance is the installment method of acquiring
enlarged estates.

Payable in Cash Whether You Live or Die
SIDNEY A. FOSTER, Secretary

FRANK D. JACKSON, President
GOOD AGENCIES OPEN

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Federal Reserve Bank of St. Louis

THE

October, 1920

NORTHWESTERN

Select the best policy for his individual needs and
talk nothing else, eliminating conflicting ideas.
Every time you say anything to him about a com­
peting company, you just make that conflicting idea
loom up a little bit larger, and every time you say
something about some other company, you have just
made another conflicting idea that later you will have
to drive out in some way. Minimize the conflicting
ideas in your sales talk.
Conflicting ideas are aroused when the salesman
misrepresents another company with the correspond­
ing result that it hurts his chance of a sale. This prac­
tice is psychologically unsound, not to say anything
of its professional aspect.
You cannot sell unless the prospect is given a chance
to make a purchase. Make provision for the pros­
pect to respond. The situation must be put to him
so that he can respond. You cannot expect the pros­
pect to provide this opportunity. You must lead
him up gradually to a place where the prospect can
sign.
It is highly desirable to develop complete selling
plans. It really isn’t sufficient to develop good ap­
proaches. Sales arguments, methods of meeting ob­
jections and the close unless all this material can be
fused together into a complete selling plan. This
does not mean that the speaker advocates a memor­
ized sales talk—it does mean that the salesman should
have' a definite plan which he .follows in canvassing—
a standardized selling plan— may be developed around
the ‘‘four contingencies which every man faces.” After
these contingencies have been mentioned, a descrip­
tion of the policy, showing how these contingencies
may be met by life insurance constitutes the plan.
There are four contingencies which every man faces:
Every one of us attempts to make: (1) Provision for
his family in the event of an early death. (2) Pro­
vision for himself if he lives until he is too old to
work. (3) Provision for family and self if he should
become permanently disabled. (4) Provision for day
of financial emergency which may arise (loan features
of policy). May I show you how these contingencies
can be taken care of effectively?—
“ A guaranteed income for life, payable at regular
and stated intervals without risk of loss and without
expense. Such has been and is the coveted goal of every
man as he thinks of his own future and that of those
who may be dependent upon him. Only the savage
lives merely for the day. The educated, the refined,
the civilized man exerts every energy to make the
most of the present, but at the same time has an eye
to the future and makes such provision as he may for

0

BANKER

Now Is the Time and
Yon are the Man
I worked in a bank myself twenty-five years ago,
before a bank clerk was supposed to be an animated
adding machine.
I earned as good a salary as the average bank
clerk gets today and there was no talk about H. C.
L. in those days. Nevertheless, I used to make
money selling accident insurance on the side.
This is the best company for you to represent for
many reasons, and I don’t care whether you are in
a big city bank or the smallest country bank, I can
show you how to make some extra money, just as
I have shown hundreds of other bankers. Write
me and see if I can’t.
E. C. fiUDLONG, Vice President

Bankers Accident C o m p a n y
DES MOINES
“ You can bank on the Bankers

of

Bo s t o n . M a s s a c h u s e t t s

THERE AUE THREE REASONS WHY THE IOWA BANKER SHOULD
SELECT THE JOHN HANCOCK MUTUAL LIFE INSURANCE
COMPANY AS THE LOGICAL LIFE INSUR­
ANCE CONNECTION
I.
Because THE JOHN HANCOCK MUTUAL LIFE INSURANCE
COMPANY stands for RELIABILITY.
It was organized in 1862—
“ THE CIVIL W AR PERIOD.”
It is one of the oldest, largest and
strongest Life Insurance Companies in the United States.
II
Because the DES MOINES AGENCY of the JOHN HANCOCK
MUTUAL LIFE INSURANCE COMPANY means SERVICE for its
BANKER AGENTS. We are as near you as your telephone..
Our efficient representatives give you their personal assistance.
Our
office force co-operates with all banker agents at every opportunity.
__
III.
Becimse the JOHN HANCOCK MUTUAL "LIFE INSURANCE
COMPANY inspires confidence in ALL BANKER AGENTS. Thru years
of experience m the BANKER AGENCY SYSTEM, the Company, has
grown to understand the banker’s situation— his needs and his Responsibili­
ties
Therefore, a pleasant business relationship results in all connections
with the Company. If you are interested in an Agency^connectum. do
not hesitate to write us at once concerning our BANKER AGENCY
PROPOSITION.h a r r y s HASK|NS g e n e r a l a g e n t
7 0 1 -7 0 3 Hippee Building
DE S M O IN E S , IO W A

GEO. I. PARKER, Vice President

FRANS NELSON, President

There’s a Reason—
why bankers like to sell our policies. Our policies pay for par­
tial and total disability as long as applicant is alive, and face of
policy at death. This makes our policies easy to sell.
Write for contract. G ood opportunities for agents.

C O M M O N W E A L T H LIFE INSURANCE CO.
F. J. UEHLING, Secretary


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Federal Reserve Bank of St. Louis

'

103

OMAHA, NEBRASKA

THE

104

NORTHWESTERN

A gen ts and P olicyholders
ARE VITA LLY CONCERNED IN THE FI­
NANCIAL STRENGTH, GOOD . SERVICE,
LIBERAL SETTLEMENTS, AND PERM A­
NENCE OF THEIR INSURANCE COMPA­
NIES. THESE QUALIFICATIONS ARE OF­
FERED BY
“ T H E O L D L IN E ”

BANKERS
A U T O M O B IL E
INSURANCE
COMPANY
H OM E

O FFICE:

LINCOLN, NEBRASKA
As Reported to State Insurance Department
For the Year Ending December 31st, 1919

Cash Capital......... . ......................... $288,400.00
Surplus to Policyholders.. . . . ....... 409,854.30
E X C L U S IV E
A U T O M O B IL E
IN S U R A N C E

F IR E , T H E F T , T O R N A D O ,
C O L L IS IO N , P R O P E R T Y D A M A G E
P U B L IC L I A B I L IT Y

D e s ir a b le A g e n t s w a n te d in th e f o l l o w i n g S ta te s : N e ­
b r a s k a , K a n s a s , T e x a s , Io w a , S o u th D a k o ta , C o lo r a d o ,
M in n e s o ta , W a s h in g to n , O r e g o n , A la b a m a , L o u is ia n a a n d
T e n n e sse e .

BANKER

October, 1920

its proper employment. Every honorable man is ac­
tuated by a threefold ambition:
(1) To provide to the best of his ability for the
future comfort and welfare of wife, children, father,
mother or other dependents.
(2) To make sure of an “ easy chair” for himself
at a time when he should lay aside some of the cares
arid responsibilities of an active business career, and
in peace and contentment enjoy the many things
which he has long desired.
(3) To get the greatest possible pleasure and sat­
isfaction from the present.
“ Having made suitable provision for the first two,
he may turn, free of all worry arid anxiety, to the em­
ployment and improvement of the present because
there are no fears for him or his dependents. He has
planned well and may indulge in. tasks and pleasures
which are appealing and worth while: How did he
make such plans? By an Income Policy.
Selling plans give definiteness and purpose to
soliciting not only for the beginner but for the ex­
perienced salesman. A selling plan helps in the sale
but one of its most important features is that it acts
as a selective agency in prospecting. Once you de­
velop a plan, you seek out prospects which may be
helped by this plan.
In your sales talk, you will, no doubt, meet with
objections. While you are explaining the advantages
of insurance and what a particular policy will do, the
prospect is, as a rule carefully weighing the proposi­
tion from his point of view and thinking out excuses.
It is important that the insurance salesman be pre­
pared to answer objections or excuses skillfully.
F r o m a n a d d re s s at th e r e c e n t c o n v e n t io n o f th e $100,000 c lu b
o f th e M isso u r i S ta te L ife , St. L o u is.

National Fidelity Life to Erect Building.
CHARACTER

STRENGTH

N

SERVICE

NATIONAL FIDELITY LIFE
FACTS:—
1. Full time salesmen working W IT H N A TIO N A L
FID ELITY and using its co-operative program are
making money, GOOD money.
2. N A T IO N A L FID E L IT Y salesmen are happy
and contented; they receive cordial support, quick
appreciation and big-hearted understanding from
their Home Office associate?.
3.
In SERVICE that really serves, in contracts
that give modern, complete coverage and in a com­
pany RECORD that is full of pride and satisfaction,
the men representing N A T IO N A L FID ELITY find
their insurance ideals splendidly realized.
M O N EY M AKING agency opportunities in Iowa,
Nebraska, South Dakota, Oklahoma and Texas.
Be H A P P Y and PROSPEROUS with a Company
that is both H U M A N and SU CCESSFUL.

National Fidelity life
Hom e Office, Sioux City, U. S. A.
RALPH H. RICE, President

The National Fidelity Life Insurance Company of
Sioux City, Iowa, has purchased property at 710
Pierce street at a cost of $60,000 and will erect a fire­
proof building. The building will be three stories
high although the foundation will be laid to support
nine or ten stories which the company plans to add in
the future. The construction will be of concrete and
steel with gray granite base and stone or terra cotta
finish.
The company is doing its own financing, no money
is being borrowed to cover the cost of building.
The National Fidelity Life was organized five years
ago and is now operating in five states, Sioux City is
the home office.
The Protective Disability Policy of the

PREFERRED ACCIDENT
IN S U R A N C E C O M P A N Y
p A i r o « 6 A ll Accidents
c o v e r s A ll Sicknesses

Over $15,000,000 Paid in Losses
You can buy weekly indemnity as desired W ITHOUT
a large death indemnity— and save money.

Upham Brothers Company
Io w a M an ag ers and A d ju sters

Suite 619 Hippee Bldg.

Des Moines, Iowa

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Federal Reserve Bank of St. Louis

THE

October, 1920

NORTHWESTERN

105

BANKER

Central Life Passes $100,000,000 Mark.
The Central Life, of Des Moines, has passed its
one hundred millions of insurance in force. Thé com­
pany has already written more than twenty-six mil­
lions this year, and the mortality has been approx­
imately fifty per cent of the expected. The company
accumulated a splendid surplus the first half of this
year.

Lindsly Company Gets Contract.
The Lindsly Fire Extinguisher Company, of Des
Moines, has just closed a contract for extending the
water mains to the new school house with the town
of Grimes, Iowa.

I. B. A. Issues New Insurance Form.
The Insurance Committee of the Iowa Bankers As­
sociation announces that a new form for burglary in­
surance is now being issued. The new standard bank
burglary and robbery policy which is now in use has
several very important broadened features over the
form which insurance companies issued previous to
August 1, 1920.

War Risk Insurance Report.
A total number of 152,979 applications for converted
insurance have been approved by the Bureau of War
Risk Insurance, according to an announcement by Direc­
tor R. G. Cholmeley-Jones, who is making public at this
time figures of a preliminary report on United States
government life insurance, prepared in the insurance di­
vision of the bureau for the period' ending June 30, 1920.
The total amount covered by these converted policies
is $511,821,500 and classified as to the forms of policy
offered by the government, the converted insurance is
distributed as follows:
$ 77,986,000
Ordinary Life....................17,462
182,830,500
20-Payment Life ........ ....45,208
19,859,500
30-Payment Life............. .... 4,184
168,276,000
20-Year Endowment..... ....71,011
35,353,500
30-Year Endowment..... .... 8,925
27,516,000
Endowment at Age 62........ 6,189
The total amount of premiums received on this insur­
ance, including monthly, quarterly, semi-annual and an­
nual, was $10,135,557.28.
The effective interest rate on total invested assets is
5.06 per cent.
The ratio of death losses to gross expected death losses
according to the American Experience Table of Mortal­
ity has been found to be less than 40 per cent.
A full and comprehensive report of government life
insurance is to be issued as of December 31, 1920.

E V E R Y B A N K E R !!

SU CCESS
— is seldom gained by the
undeserving
Get the facts about insurance com­
panies and you will find that the
Berkshire Life ranks “ Ace High.”
It has attained its enviable position
in the insurance field because
throughout every year of the 69
years it has been doing business
‘‘Service and Co-operation” with its
agents and policyholders has been
held as most important.
That is why today Berkshire policy­
holders are Berkshire boosters. Busi­
ness-building boosters you would
call them because they are always
willing to recommend a Berkshire
policy to their friends.
.W e value among our boosting
friends many bankers who know that
Berkshire service will-satisfy their
friends and customers.
On the other hand there are many
bankers who realize the immense
value of being associated with the
Berkshire Life Insurance Company.
They know the profit-making possi­
bilities of handling life insurance and
the good will and prestige-building
value - of ^selling insurance - to their
clientele which will please them
always.
Our special Bankers Proposition
should be investigated. A postcard
is sufficient. Write us with today’s
mail.
*

(Between 18 and 55 years of age )
W h o does some traveling as solicitor, auditor, farm
inspector, bond or insurance salesman, should belong
to the

“Oldest and Best ”

Berkshire Life Insu rance C o m p a n y
of Pittsfield, M ass.

Accident Insurance at Cost
Never Exceeded $9.00 per Year
W eekly Indemnity $25.00
Death Benefit $5,000— $10,000

Emory D. Bream

IOWA STATE TRAVELING MEN’S ASSOCIATION

Insurance to Feb. 1, 1921, for $2.00
(New Members Only)
W rite for Application Blank

H. E. REX, Sec’y-Treas.

DES MOINES, IOWA

G eneral A g e n t for Iowa
715 Hippee Bldg.

Des M oines, Iowa

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Federal Reserve Bank of St. Louis

106

THE

NORTHWESTERN

T H E NAM E
OF OUR C O M P A N Y
was not chosen lightly, but with deliberate purpose.
It was meant to symbolize the spirit of its management
— the quality of sound business principles— a rock-ribbed
belief that genuine service commands more respect and
support than a record of merely a rapid growth.
W hile TH E CO N SER VATIVE LIFE is new in the
sense of recent organization, it is not new from the
standpoint of experienced management. Our policies
are simple, straightforward contracts, some of them es­
pecially distinctive in the way they are designed to meet
the needs of the insured.
The Company recently issued an introductory book­
let, which, besides giving a history of the organization
and a review of the personnel of the management, tells
the story of one of the most important life insurance
laws enacted in Iowa for many years, and which was
secured at the direct instance of TH E C O NSERVATIVE
LIFE because of its desire to give a broader service to
its policyholders. It is yours for the asking— and it is
worth reading.

The Conservative Life
Insurance Company of Iowa
B U RTON H. SA X T O N , President
A. E. W IL D E R , V.-Pres.
J. P. LAN G STAFF, Sec.
T. M. MURDOCH, Treasurer.

Home Office: SIOUX CITY, IOWA

BANKER

October, 1920

W
anted—AGeneralAgent
IN EVERY COUNTY IN IOWA
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.

Des Moines, Iowa

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Federal Reserve Bank of St. Louis

October, 1920

THE

NORTHWESTERN

107

BANKER

Best Policy for Man Age 32.
G. F l Fricker, of Cleveland, at the recent agency
convention of the Connecticut Mutual Life, had as a
topic the ‘‘Best policy for a man, age 32, with a wife
and two children, whose income is from $4,000 to
$6,000 per annum.’1’
Mr. Fricker stated that to his mind the ordinary life
policy so often advocated did not fill the bill on ac­
count of the fact that it did not furnish proper old
age protection, even though the policy was cashed.
He stated that even though the paid-up or cash value
options might be taken advantage of, these were com­
paratively so small in proportion to the face of the
policy that the psychological effect upon the prospect
would be bad .and the funds so available might not
be sufficient to take care of his needs. '
He advocated a policy which could4be paid up during
the early years, and he said that in a great majority of
cases the annual premium endowment' at 65 and 70
was in his mind the best. Occasionally, where it was
desirable to make a policy paid-up as soon as possible,
a 20-payment endowment at 75 could be substituted.
He especially advocated selling so-called “ Endowment
Series” whereby a man could secure for himself several
endowment policies insuring at, say, ages 60, 65, 70
and 75. Even if it were not possible for him to pur­
chase all of these at one time to furnish a program
which could be carried out as his earning power in­
creased and the adoption of such a plan serve to tie
up the prospect to the agent recommending it.

Increase Health and Accident Rates.
The Travelers increased rates on new health in­
surance business as of September 1st. The advance in
the basis premiums, was from $8.50 to $10 and from
$10 to $11. '
The advances were based on the experience of the
company, with influenza epidemic claims excluded.
Had the epidemic losses been used in the computation
of increases necessary to make the business satisfac­
tory considerably higher rates would have been
necessary.

Activity Increases in Surety Business.
Surety business, which during a number of months
following the signing of the armistice lagged behind
all. other lines of insurance in volume, has now de­
veloped its full pace of activity and has, in fact, shown
more development during the last few months than
even the most active of other lines according to the
Journal of Commerce. This is true as. regards all the
various classes of surety, and also fidelity business.
The contract surety which until recently was rather
slow, particularly in the eastern states, owing to the
high costs of construction and the resulting disinclina­
tion to undertake operations, is now as active as any
line and many large bonds for construction opera­
tions are being placed.
Surety underwriters when the revival in this line
commenced were inclined to be rather cautious because
of the unsettled conditions as to material and labor.
All the contracts, however, are being drawn to take
care of these uncertainties, with the result that under­
writers are now writing bonds of a very good volume,
and the business of the companies during the first
seven months of 1920 far exceeded that of the same
period last year and, in fact, leading companies are
well ahead of any previous record.

: j. delm eg
P re s id e n t.
P . C. W A T E R B U R Y ,
V ic e P re sid e n t
H O M E R A . M IL L E R ,
V ic e P re sid e n t.
S IM O N C A S A D Y ,
T re a s u r e r.
george

b

,

THEO. F. GREFE,
S e c re ta r y .
A . H . W ATSON,
A s s is t a n t S e c re ta r y
C H A S . O. G O O D W IN ,
M a n a g e r A u to D e p t.
HENRY & HENRY,
C o u n se llo rs

Total Assets....:........:.................... ...................... $1,091,934.05
Cash Capital......................
500,000.00
Net Surplus....!...... .,...................
305,934.07
Surplus to Policyholders...................................
805,934.07
909,700.00
Loans on Iowa Farms........... .........................
A HOME Company, owned by HOME people, managed
by experienced and conservative underwriters and able
financiers.

A CENTRAL-W ESTERN COMPANY FOR CENTRALW ESTERN PEOPLE.

CENTRAL LIFE
Assurance Society of the
United States
DES M OIN ES, IO W A
Insurance in Force:

$100,000,000.00
Assets Over

$9 ,000 ,000.00
Double Indemnity
Disability
Child’s Endowment

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Federal Reserve Bank of St. Louis

108

THE

NORTHWESTERN

BANKER

October, 1920

Royal Indemnity to Insure Electric Motors.

Farmers Automobile
Insurance Company
STOCK COMPANY
Organized Without Promotion Expense
Home Office

,

Sioux City, Iowa

A new form of insurance is being written by the
Royal Indemnity, which covers against breakdowns
that may occur to electric motors while in operation,
whether due to the breakage of parts, burning out,
failure of insulation or other causes, resulting in the
stoppage of the motors for repairs. The insurance will
be written for a. term of one year and for the present
only motors rated at between five and 100 horsepower
will be accepted. As in the case of steam boiler in­
surance, the feature of this new form of coverage is
the inspection service rendered by trained experts and
which goes with the insurance.

Companies Writing Bank Burglary Form.
Our Specialty is Term Insurance for Farmers'
Automobiles. Simplified Rate Schedule
Term Rates at a Glance
We are especially interested in obtaining the
services of live bankers to represent us
in IO W A and SOUTH D AK O TA

C. S. RENSHAW
President

N. J. HVISTENDAHL
Secretary-Manager

4
Reasons W hy You Should
Represent the
FARMERS’
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 STOCK
INSURANCE COMPANY
Old Line Insurance for Hogs, Horses and Cattle
Largest in the W e st
DBS M OINES, IO W A

The following companies are now writing the
American Bankers Association standard form bank
burglary and robbery policy : Aetna Casualty &
Surety, Hartford ; American Bonding & Casualty,
Sioux City; American Guaranty, Columbus; Amer­
ican Indemnity, Galveston; American Surety, New
York; Columbia Casualty, New York; Continental
Casualty, Chicago; Employers’ Indemnity Corp., Kan­
sas City; Employers’ Liability, Boston; Federal Sure­
ty, Davenport; Fidelity & Casualty, New York; Fi­
delity & Deposit, Baltimore; General Accident, Phila­
delphia; Globe Indemnity, New Y ork; Hartford Ac­
cident & Indemnity, Hartford; Inter-State Surety,
Redfield, South Dakota; Iowa Bonding & Casualty,
Des Moines; Kansas Casualty & Surety, Wichita;
Lion Bonding & Surety, Omaha; London Guarantee
& Accident, Chicago; London & Lancashire Indem­
nity, New York; Maryland Casualty, Baltimore; Mas­
sachusetts Bonding & Insurance, Boston; Metro­
politan Casualty, New Y ork; National Surety, New
York; New Amsterdam Casualty, Baltimore; North
Dakota Bankers Mutual Casualty, Fargo, North Da­
kota; Norwich Union Indemnity, New York; Ocean
Accident & Guarantee, New Y ork; Preferred Acci­
dent, New Y ork; Republic Casualty, Pittsburgh;
Royal Indemnity, New York; Southern Surety, Des
Moines; Travelers Indemnity, Hartford; Union In­
demnity, New Orleans; United States Casualty, New
York; United States Fidelity & Guaranty, Baltimore;
Western Accident & Indemnity, Helena, Montana;
Western Surety, Sioux Falls.

Automobile Insurance Opportunities Great.
The opportunities for automobile insurance appear
limitless, as, according to data collected by “ Public
Roads,” there were 7,565,446 motor cars, including
commercial vehicles, and 241,038 motorcycles regis­
tered in the United States during 1919. The regis­
tration and license fees, including those for chauffeurs,
operators and dealers, amounted to a total of $64,697,255.58. Compared with 1918 the data for 1919,
represents an increase of 23 per cent, or 1,418,320
motor vehicles. This increase alone represents about
10 per cent more cars than the total number registered
in the United States during the calendar year 1913.
In this connection it is interesting to note that the
number of cars registered during 1919 in New York
and Pennsylvania exceeded the total number of cars
registered in the entire United States in 1912, while
the revenues derived from the New York and Penn­
sylvania registrations during 1919 were about double
those derived from all motor vehicle registration and
licenses in the United States in 1912.

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Federal Reserve Bank of St. Louis

THE

October, 1920

NORTHWESTERN

109

BANKER

Blevins Travels for Bankers Life.
C.
C. Blevins, superintendent of agents for the
Bankers Life Company,, of Des Moines, is making a
tour of all of the western agencies of the company and
expects to be gone from the home office for a month.
This tour is the first that Mr. Blevins has made among
the agencies for a period of over seven years. His
schedule includes the agencies of the company in
Denver, Salt Lake City, Helena, Spokane, Seattle,
Portland, Los Angeles, and San Francisco.

Opposed to Banks as Insurance Agents.
President Joseph G. Brown of National Conven­
tion of Insurance Commissioners, Insurance Commis­
sioner of Vermont, criticized the scheme in his annual
address as follows :
“ Personally, I am opposed to the practice of appoint­
ing banks or officials of banks as agents of fire in­
surance companies, as I believe such a practice leads
to the placing of insurance by the public through such
banks as a condition upon which the making of certain
loans depends. This will ultimately work a real hard­
ship upon the public as it may prevent proper credit
for improvements adopted in individual instances
where the hazard might be lessened and the insurance
rate reduced as a result of recommendations made by a
bona fide, aggressive agent.”

Savings Deposits Guaranteed.
“ Writing 5,000 policies at one crack” for a total ex­
ceeding a million dollars is the remarkable selling
achievement of F. A. Deichmann, district manager at
Kansas City, Mo., for the Equitable Life of New York.
In the details of the plan Mr. Deichmann has worked
out a scheme which, though applied previously in
isolated instances, is now for the first time being used
in a wholesale way.
Briefly, the proposition is to insure on the ordinary
life plan the lives of some 5,000 savings depositors in
the Columbia National Bank of Kansas City. The
underlying purpose is to guarantee that a depositor
who starts out to save a certain amount in a period of
ten years shall be certain that his estate will receive the
full amount of the contemplated savings in the event
of his premature death.
The transaction has nothing in common with group
insurance because individual policies will be issued in
each case after the usual medical examination. The
transacton which has been arranged in co-operation
with Thornton Cooke, president of the bank, is based
upon the assumption that 5,000 individual depositors
will agree to create by savings in ten years accounts
averaging $2,000.

Prevent Brokerage Thefts.
In an effort to minimize thefts from brokerage
houses in the financial district the National Surety
Company, in co-operation with the Association of
Stock Exchange Firms, has opened a central investi­
gating bureau, at 2 Rector Street, where a card index
system containing the names of 10,000 employes of
brokers will be begun.
This is announced by Joel Rathbone, Vice President
and General Manager of the National Surety Company,
who says that the company’s secret service depart­
ment already is investigating the personal record
and mode of living of many of the employes of the
200 brokerage houses connected with the Association

IOWA STATE INSURANCE CO. (mutual)
KEOKUK, IO W A
Insures against Fire, Lightning and W ind
Organized 1855
G. C. Tucker, Secretary
W m . Logan, President

Y O U K n ow , M r. Banker,
Development Means So Much
Growth alone signifies but little. Many a company
that will not ‘‘measure up” can furnish an accurate
array of asset figures satisfying to some.
But you know the company which renders service—
the company which meets with your whole-hearted ap­
proval now and later, is the one that has studied its
problems and solved them ; that has considered the
“other fellow’s” angle as well as its own and “ tuned”
them in perfect harmony— in short, the company that
has developed— not merely “ grown up.”
Our strength comes not from our asset progress alone
— although that has been extraordinary— but from a
continuous improvement in our proficiency and efficiency
in giving the highest grade of service — that’s develop­

ment.
GIVE YOUR PATRONS THAT WHICH
YOU CAN FEEL IS GOOD

Great Western A ccid en t Insurance
Com pany
DES M O IN ES

-

-

IO W A

I o w a ’« Leading? L ia b ility In s u ra n c e C o m p a n y

Iowa Mutual Liability
Insurance Company
CEDAR RAPIDS, IO W A
A u t o m o b ile P u b lic L ia b ilit y (P e r s o n a l I n ju r ie s )
A u t o m o b ile P r o p e r t y D a m a g e L ia b ilit 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 ilit y
G en era l, P u b lic , T e a m s a n d E le v a t o r L ia b ilit y In s u r a n c e
L o w e s t R a te s

S e rv 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 o m p a n y

Iow a A u tom ob ile M utual
Insurance C om pany
CEDAR RAPIDS, IO W A
A u t o m o b ile F ir e , L ig h tn in g , T h e ft , 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 ll F lo a t e r P o lic ie s
L o w e s t R a te s , S e r v ic e B e st
A g e n t s w a n te d in I o w a , M in n es ota , N e b r a s k a a n d I l l i ­
nois. A d d r e s s in q u ir ie s
In s u r a n c e B ld g ., 512 S econd A v e . E a s t
C ed a r R a n ld s , I o w a

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Federal Reserve Bank of St. Louis

THE

110

NORTHWESTERN

Complete Protection to Banks Against

BURGLARS AND BANDITS
Secured Through Policies Issued by the

CAPITAL ONE MILLION DOLLARS
BURGLARY INSURANCE
Covering Money and Securities against loss through
Burglary and Hold-up.

DEPOSITORY BONDS
Covering all Public Deposits.

F ID E L IT Y BONDS
Giving full protection against loss through misappro­
priation of funds by officers or employees.
Direct Your Local Agent to Place Your Policy or
Bond W ith This Company.

BANKER

October, 1920

of Stock Exchange Firms. Mr. Rathbone says the
card index is thé outcome of the recent epidemic of
thefts from brokerage houses by messengers and other
employes; Many of the thefts, it is explained, have
been perpetrated by youths, of criminal tendencies
whom the brokers are forced to employ because of the
scarcity of honest help.
' Under the arrangement of the National Surety Com­
pany with the Association of Stock Exchange Firms
it is proposed to keep a close watch on employes of
brokerages during their hours of employment and
leisure, and when it is discovered that an employe is
associated with persons of criminal tendencies the
bureau of investigation will report the matter im­
mediately to his employer, with the request that he
be discharged.
The work of the secret service men in the employ
of the National Surety Company, it is explained, will
be confined for the present to an investigation of about
3,000 employes of seventy-five stock exchange houses
co-insured by the company as well as the employes of
200 brokerage firms solely insured by the company. As
the investigation of the employes extends, it is an­
nounced, the company will increase its secret service
force. It is announced that the company intends to
keep on the trail of the bond thieves who have been
sought by the police for years.
The employes of stock exchange firms welcome the
move, ‘ declares Mr. Rathbone,” since it will result in
a general ‘clean-up’ of dishonest employes in the
financial district and will put an end to the suspicion
and embarrassment caused to trustworthy employes
by the many thefts of money and securities.

WHEN W E SW ALLOW OUR MEDICINE AND
PRETEND WE LIKE IT.

Your Neighbor Is Your Friend!
The Lion, of Omaha, writes every kind of bond
and every kind of protection against the results
of casualty. The Lion is not an experiment,—
our Company is an acknowledged success. Iowa
treats us very well in volume of business, but we
want more business. In Nebraska, ninety-seven
per cent of the banks send us business,—we ex­
tend as cordial an invitation to the banks of Iowa.
Write me a letter, today.

E. R. GURNEY, President.
W e don’t want much—just the Lion’s share.

The Lion Bonding & Surety Co.
OMAHA

(Continued from page 20.)
will have to come to the rescue of the banker. But
the Federal Reserve says ‘‘Thou shalt not charge any
exchange to us.” Thus it behooves the sorely driven
banker to find some one he can legitimately charge in
some way for his loss in other ways.
After all the biggest word in the bankers dictionary
is the word “ net.” W e are all doing a bigger busi­
ness than we ever did— more customers, more mail,
larger deposits, more loans and more activity of every
kind, but what the “ net profits” will buy is worth less
than ever before.
Legislation cannot make prosperity. Legislation
can correct evils of many kinds but legislation cannot
change a man’s religion and cannot inject prosperity
into a community.
Nor can it be of great benefit for business that the
government shall enter it as a competitor because
Uncle Sam is just naturally wasteful. Suppose you
have a two cent overdraft on your books. The fel­
low who overdrew has left town; you will charge off
the two cents. Uncle Sam would spend two dollars
trying to find the fellow. It has been said that any
business of a private nature which, would be con­
ducted along the same lines as the government would
go into bankruptcy eventually.
I believe most of these conditions will be-bettered
soon. W e should learn by the mistakes we make. I
do believe that the sooner we get back to the prac­
tical working of the old laws of supply and demand,
and interfere less with honest business the better off
we. will'all be.

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Federal Reserve Bank of St. Louis

October, 1920

THE

NORTHWESTERN

IN T H E D IR E C T O R S ’ R O O M

BANKER

111

10WA NATIONAL FIRE INS. CO.
1018-1024 V a lle y National Bank B ld g.

Another Way To Save Money.
A man who did not appear to be too prosperous
approached a teller’s window in, the Fort Dearborn
National Bank recently.
“ 1 want to borrow $10,” he said.
“ Three blocks north and two east,” said the teller.
You’ll know the place by------ ”
“ I ain’t kidding,” said the man. “ I want to borrow
ten beans—bucks— clams; and I got these for
security.”
The teller’s eyes opened when he saw ten $1,000
Liberty Bonds.
“ Right over there,” he said, pointing to the sanc­
tum reserved for vice presidents and stenographers.
“ Have a cigar,” said Marcus Jacobowsky, a vice
president. “ What can I do for you?”
“ I want to borrow $10,” said the man, producing the
bonds.
Jacobowsky laughed.
“All right,” he said. “ Give me one.”
“ Nope,” replied the man. “ You got to take ’em all.”
The official finally agreed and wrote a receipt.
“ Now what’s the idea?” he demanded.
“X borrow $10 at 7 per cent,” said the man. “You
keep my bonds and I come in and clip the coupons—
you can’t stop me, you know. My bonds are safe.
You’re responsible and I save $10 a year, which I would
pay for a safety deposit vault, minus 70 cents which
I pay as interest.”
“ O-o-ohH gasped Jacobowsky as the man left the
bank.

Wasted Humor.
Old Mr. Bingleton boasted that he had thought of a
plan to frustrate any garrulous barber and ensure a quiet
shave. One. morning he entered a strange barber’s shop,
flopped down in a vacant chair, and handed a printed card
to the hairdresser. This is how it read—“ Hints to the
hairdresser— I want a shave. I don’t want my hair cut.
I don’t want a shampoo. I don’t use dressing. I’ve a
pimple on my chin. Another on my top lip. I don’t want
telling about ’em. I don’t want talking to death. I want
a shave, and silence.” The hairdresser read the “ hints,”
smiled, and nodded to a conspicuous notice on the wall—
“ The proprietor being deaf and dumb, hopes his custom­
ers will excuse any seeming reluctance to enter into con­
versation.”

How They Get In.
Sympathetic Visitor (to prisoner)—“ My good man,
what brought you here?”
Prisoner— “ Borrowing money.”
Sympathetic Visitor—“ But they don’t put men in
prison for borrowing money.”
Prisoner— “ I know, but I had to knock a man down
three or four times before he would lend it to me.”

The Point of View.
Two locomotive engineers met on the street. Bill
sang out to Jim: “W e voted to strike at the meeting
today, but I didn’t see you there.”
“ No,” replied Jim; “ I couldn’t get downtown on ac­
count of the street car men’s strike. Those fellows
haven’t any consideration at all for the public.”

DES MOINES, IOW A
F. L. M IN ER , President
P A R L E Y SHELDON,
C. M . SPENCER.
V ice Pres.
Secretary
C. S. V A N C E ,
FR A N K P. F LY N N ,
2nd V ice Pres.
Treasurer

POLICY HOLDERS
W ill Patronize an I O W A Company
Guaranteed by I O W A Capital
Managed by I O W A Men
IO W A B AN K E R S R ecogn ize the Advantage o f P ro­
tecting IO W A C R E D IT w ith IO W A IN SU R A N C E
R elia b le A gents W a n te d in Every City In Io w a .
W r ite to tbe Com pany

Are You Thinking oi Building a
Bigger Business for Yourself?
If So, Here Is Your Opportunity
The M ISSOURI ST A T E LIFE IN SU R AN C E COM PANY,
of St. Louis, Missouri, is seeking connection with high
grade men for General Agencies in Northern and W e st­
ern States.
The Company is not looking for men o f only average
ability— but men of pronounced capability in developing
productive agencies.

FACTS:
Over $260,000,000 of Insurance in Force in its 28th
year.
Issues both particip ating and non-participating insur­
ance— non-participating policies particip ating a t end
of premium-paying period.
Po licies embodying a ll the rich up-to-date features of ,
life insurance.
Operating in 88 States and T errito ry of H aw aii.
Profitable agency contracts fo r the present and future.
It is not often such desirable territory for as large a
company is available. W e invite your inquiry.

Missouri State Life Insurance Co.
M. E. SINGLETON, President

Home Office: St. Louis, Missouri

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Federal Reserve Bank of St. Louis

THE

112

NORTHWESTERN

October, 1920

BANKER

I O W A FARM M O R T G A G E SECTION
The Northwestern Banker is the official publication of the Iowa Farm Mortgage Association
O F F IC E R S — Ed. Kauffmann, Davenport, Pres.; G riff Johnson, Des Moines, V.-Pres.; Daniel Rhodes, Fo rt Dodge, Treas.; F . G. Waples, Cedar Rapids, Seo.
E X E C U T IV E C O M M IT T E E
Geo. F . Helndel, ex-officio..................... Ottum wa
E. H. L o u g eo .....................................Council Bluffs
F. B. M ille r .............................................. Cedar Falls
Varick Crosley..................................... W ehster C ity
H . S. Van A lstine..............................Gilmore City
Alm or Stern ...................................................... Logan
Carl R. D a v i s . . ; .....................................W a te rlo o
D. H. M cK ee............................................ Des Moines
G. M . T itu s ....................................................Muscatine
H. 1. Foskett.......................................... Shenandoah
Kenneth M o A r a ........................................... Brooklyn
J. F . W ebber.................................................Ottum wa

Farm Loans and T h e ir Safeguard,
the Land Examiner
B y Frank A . H illiard

Phoenix Trust Company, Ottumwa
ARM loans differ from most other securities in
that there is a personal guarantee to pay separate
and ,apart from the land taken as collateral. In
nine cases out of ten, and I think I could safely say
99 cases out of 100 the note would be promptly paid
if there were no land security. The millions of dollars
loaned by the banks of our country are loaned on no
better paper than the note iri a farm loan without the
land as security. True these bank loans are,shorttime loans, but they are often renewed for years. Some­
times the interest is added to the note. These notes are
practically all paid and if the unsecured notes are
generally paid, a note secured by real estate worth
more than twice the face of the note is sure to be paid.
In a farm loan the legal end is not so material as in
bonds where the legality of the proceedings from the
organization of the concern issuing the bonds to final
disposition of the issue is vital, where the entire pro­
ceedings must be according to law-or the bond is of no
value. In the farm loan, any note or promise to pay
described in a mortgage or trust deed and recorded is
a lien on the land. The bond has no personal guaran­
tee. The statement issued by the seller, who generally
announces that he thinks they are correct, but he does
not guarantee them to be so, is much different from
the Farm Loan Banker who offers a signed applica­
tion and a report signed by his land examiner telling
the facts about the security with no “ W e do not
guarantee this to be correct.” Bonds are for the in­
vestor who can afford to take a chance. There are
bonds on the market at sixty-two cents on the dollar
that six years ago were worth par, and bonds that are

F

now selling for sixty-two cents on the dollar in five
years may sell for one hundred and two cents on the
dollar, or they may be worth only their value as scrap
paper.
The loss sustained by the original investors in Liber­
ty Loans by selling at less than par would amount to
millions. With farm loans the story is different. Most
Farm Loan Bankers will cash their loans at any time
at par with accrued interest. I have made considerable
inquiry and find a 2% discount to be the largest asked
by any broker to cash one of his loans. This was a
five-year loan with three and one-half years yet to run.
Compare this with the discount asked on some of the
Liberty Bonds and other classes of securities and
the decision must be in favor of farm loans.
If farm loans are absolutely safe, they are the ideal
investment for the person who wants the interest on
his money for a given time and his principal back.
They are the best for the investment of funds held in
trust. (The increasing amount of farm loan paper
held by the Life Insurance Companies is evidence
of this fact.) Farm loans purchased from the mem­
bers of this association are safe, because the loan has
been passed by the man or men in charge of the com­
pany as being in a desirable location, for an amount
not in excess of the amount of debt a man should have
on the land and stock shown in the application. Be­
sides, he has the appraisement of some local parties.
This is a great deal more than is given with most
other investments, but this does not satisfy the Farm
Loan Banker. Before this loan is made, the security
must be passed on by the land examiner who makes

A . M. C L O U D , P re s id e n t
H . E. H E N D E R SO N , T rea su rer

I. C. S T A N L E Y , S e c r e t a r y

FARM

LOANS

Write us for rates and terms on your farm loans to be closed this fall and early winter.
W e will appreciate your inquiry.

W e offer prompt and efficient service.

American Mortgage & Securities Company
H o n e Office
Manchester, Iow a

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

General offlce
Hlarley Bnudins
Cedar Rapids, Iow a

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Federal Reserve Bank of St. Louis

October, 1920

THE

NORTHWESTERN

a report on the applicant, his security and the de­
sirability of the loan.
Th.e land examiner is selected because he knows
land and land values. He must be a close observer
and able to see any objectional feature quickly. His
job depends on the loans he inspects proving good,
and he must be conservative to hold his job. To make
the inspection, he must visit the land offered as se­
curity. Most examiners make a plat of the land show­
ing the buildings, fields, fences, etc., which plat is
part of his report and goes with the loan. The ex­
aminer must ascertain the selling value of the land,
which is usually done by comparing the security with
other places that have sold for cash. It is remarkable
how accurately an examiner, who has worked in a
territory for years, can value the land. This is a small
part of the work of the examiner. He ascertains the
standing of the applicant, financially and otherwise.
If he is a poor farmer or has a bad reputation, his loan
is declined. He inquires as to the reputation of the
farm and as to the title to the land, thus eliminating
any chance of forgery and about all chances of a bad
title. The location of the security is taken into con­
sideration. If it is not easily reached by road or if
the different parts of the security are not easily ac­
cessible one to the other, he makes a deduction from
his recommendation. The ability to produce is care­
fully noted. Many loans are declined because the
land is in a bad state of cultivation, or is not in condi­
tion to produce a paying crop. This is considered
very important by all the farm loan men I have ever
talked to. A farmer living on a productive farm is
seldom delinquent with his interest.
Another important point is the liability that the
security may be damaged by erosion or otherwise.
If rough land is being farmed, it may wash. Some
creek or river may overflow and damage the land.
Foul grass or weeds on the adjoining land may be­
come a hazard. All these, and many other things are
considered and deductions are made in the amount
loaned, or the loan is declined.
After the examiner has filed his report, the loan
is either declined or approved for an amount always
less than 50% of the value of the security. Could any
investment be safer than a farm loan by a member of
this association where the member guarantees the
originality of the paper, the sufficiency of the title and
that the examiner’s report is practically correct, where
the interest and principal are collected and remitted
without cost to the investor.
As evidence of the absolute security of wejl selected
farm loans, I point to the millions, or I had better
say billions of dollars loaned by the members of this
association without loss to any investor of a cent in
principal or interest.
(F r o m an a d d re s s b e fo r e th e c o n v e n t io n o f th e F a r m M o r t ­
g a g e B a n k e r s A s s o c ia t io n o f A m e r ic a .)

BANKER

113

FOR BANKS AND
BANK OFFICIALS
PAR TICULAR, personal service intel­
ligently rendered by men especially
trained and experienced in all branches
of Investment Banking.
A B IL IT Y to assist our bank clients at
all times in keeping their funds safely
and profitably employed and to aid in
realizing upon th eir. holdings when
these funds are needed.
A N O RGANIZATION of size and re­
sponsibility enabling our co-operation
with banks, especially in Iowa and the
Central W est, in profitably and satis­
factorily financing local enterprises as
well as cities, towns, school, highway
and drainage districts.
IN V E S T M E N T B AN K IN G in all its
branches is our “ whole existence”—
not a side line.

Bankers, Mortgage Company
Capital $2,000,000
6 2 1 W a ln u t St.
D e « M oin e s

Loans on Homes
For Prosperous Iowa Cities
W e have money to loan at 6 > ^ %
on new properties and will con­
tract with responsible parties to
accept their loans.
W e have a
long time loan with easy payment
privileges.
Write for particulars.

Dr. Ely on Real Estate Taxation.
“ Real Estate in the United States is subject to much
higher taxation than in the leading countries of
Europe,” said Prof. Richard T. Ely/Econom ist of the
University of Wisconsin, in addressing the Farm
Mortgage Bankers Association of America, at its an­
nual convention in Kansas City. Prof. Ely quoted
statistics from England, France, Belgium, Germany
and Switzerland in support of his* statement.
He said that the average proportion of taxes borne
by real estate in those countries was not over one-

The Bond and Mortgage Co.
C. H . Johnston, President
H . W . Gamer, Vice-President

v;

206 Valley National Bank Building
DES MOINES, IOWA

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Federal Reserve Bank of St. Louis

THE

114

NORTHWESTERN

FOREIGN
EXCHANGE
As agents and correspondents of leading Euro­
pean banks we are in an exceptional
position to execute orders for checks
and cable transfers especially for

German Marks
Polish Marks
Austrian Kronen
Hungarian Kronen
Czecho-Slovakian Kronen
Jugo-Slavian Kronen
We offer banks and trust companies special
facilities for drawing checks directly on our
accounts abroad.

PACAT FINANCE

CORPORATION
42 Broadway, New York

Mr. Banker:—
Our First Mortgage Certificates are the most
convenient form of security you can offer your
customers; Because: They are the direct obliga­
tion of our Company.
They are secured by first mortgages on im­
proved Real Estate, mostly Iowa farm land.
They are not incumbered with coupons or cou­
pon notes.
They are made payable to the individual, per­
fect insurance against loss.
They are made to mature at such time as is de­
sired by the investor.
They are made in any amount desired by the
purchaser.
Trustee: Bankers Trust Company, Des Moines,
Iowa.

SEND FOR DESCRIPTIVE BOOKLET

Farmers Bond and
Mortgage Company
404-5-6 Hippee Building
DES MOINES, IOWA
EDWIN HULT, President

AUTHORIZED CAPITAL $1,000,000.00

BANKER

October, 1920

half to one-fourth of what it is in the United States.
A thorough investigation shows that the burden of
land taxation in Belgium is a good deal less than in
Wisconsin, about one-fourth and in some cases not
over one-tenth. In Paris the tax on real estate is about
one-half of one per cent. Prof. Ely’s investigations
have convinced him that the average real estate tax
in the entire country of France averages less than
in Paris. Prof. Ely showed that the tendency in
America is to impose still higher taxes upon real
estate because of the increase in the volume of person­
al property exempt from taxation. He argued that an
increase of taxes upon farm lands would retard and
diminish agricultural development and prosperity.
New Zealand was referred to as a country often
cited as under the single tax system where the public
revenues are derived from the land taxes. Prof. Ely
has made a personal visit to New Zealand to in­
vestigate economic conditions. In 1919 only 11% of
the total revenue of New Zealand was raised from
land taxes. The speaker said that' the permanent
prosperity of the farmer depends upon the general
prosperity. That a selfish pursuit of individual in­
terests, if carried to its logical outcome, always ends

in chaos.
He insisted that the farmer must have suitable
reward for his efforts. He referred to the days when
corn was burned as fuel and hogs were sold at $2.00
per cwt., to prove that it is possible to have over pro­
duction in agricultural products. He insisted that
prosperity depends upon well proportioned general
production.
He said that the financial, commercial and agri­
cultural interests of America should begin a system
of economic research in order to profit by the ex­
periences of other countries in order that in our
policies we may proceed on a basis of actual knowl­
edge.

Facts From the Federal Tax.
According to an analysis of the Federal Income Tax
returns, 13,000,000 persons are living on $2,000 a year
or less. The Tax amounts to $5,410,284,874, the bulk
of which was paid by 2,000,000 persons, in Federal In­
come, Excess Profits and miscellaneous taxes collected
by the Government for the fiscal year ending June 30.

BLUE-SKY LEGISLATION IS NEEDED.
(Continued from page 29.)
nouncing citizenship in and allegiance to that coun­
try, and taking up residence in and becoming a citi­
zen of another country.”
While the wife of a naturalized citizen of the United
States has full political rights with her husband, an
American born woman who has resided in the United
States continuously all of her life, who is married to
an alien may not vote at this next election, as con­
gress by affirmative act has declared that any Amer­
ican woman who marries a foreigner shall take the
nationality of her husband.’
However, if the marital relation is terminated either
by divorce or death the widow has a right to resume
her citizenship without the process of naturalization.
As to the effect of temporary expatriation on the
right of an American woman to occupy certain political
offices, this question has not yet been passed on by

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Federal Reserve Bank of St. Louis

October. 1920

THE

NORTHWESTERN

BANKER

115

Short Term Investments
Buy our Cattle Paper with your surplus funds.
Made by Iowa farmers owning their own farms,
secured by chattel mortgage on cattle and bearing
our endorsement.
Three securities— current market rates.
Responsibility over Two Million Dollars.

United Cattle Loan &Live Stock Company
Executive Offices: 5 0 4 -5 0 9 Hippee Building

DES MOINES
O w ners o f 'Mulekead Ranch , G regory C ounty , 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

MULEHEAD
RANCH
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if

THE

116

NORTHWESTERN

GUARANTEE
MORTGAGE
& FINANCE CO.
Des Moines, Iowa
AUTHORIZED CAPITAL $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.
OFFICERS
R . B. P A R R O T T , P resident
C. II. M ARTIN, T reasurer
E. J. K E L L E Y , Secretary

1002 R e s is te r and T ribu n e H ide.
T elep hone W aln u t 1385

Iowa Title Guaranty
Company^
O rganized 1 9 1 8
Send your next abstract to us and have it elim­
inated by our binding Guaranty, to
stand back of the title.

Farm Loans, Bonds, Trade Acceptances and
Cattle Paper Bought, Sold and Negotiated.
Local Bankers can make connections of mutual
interest by corresponding with the company.
OFFICERS.

W . L . H A R D I N G ...
JA M E S G. T H A R P .
R. T. R H I N E ..............
C. S T E V E N S O N ----H. M cC a r t n e y

w.

HENRY

SAM PSON

......................................................P r e s id e n t
.........V ic e P r e s id e n t a n d T r e a s u r e r
......... V ic e P r e s id e n t an d S e c r e t a r y
........................................ V ic e P re s id e n t
C. H. D. L E S T E R
D. S. H U R S T

.............................................................A t t o r n e y

203 K r a ft B id s-. Des M oines

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Federal Reserve Bank of St. Louis

by

BANKER

October, 1920

TAX EXEMPTION IS INSIDIOUS FOE OF THE
FINANCIAL WORLD.
(Continued from page 23.)
Land Bank borrowers was in fact only 3.6 per cent,
instead of Sy2 per cent. No official repudiation of
that statement has been subsequently made.
A similar statement to the effect that the rate is a
little less than 4 per cent appeared in “ Farm and Fire­
side” for October 1919, over the signature of Judge
Lobdell. When attention was publicly called to this
misstatement by our association, the judge in a per­
sonal letter explained that the objectionable state­
ment was interpolated by the editor, without his
knowledge. Your secretary insisted that the only
way the judge could be relieved of responsibility for
the statement would be by the publication of a re­
traction in “ Farm and Fireside.” It required five
months of constant hammering on the part of this
association, before the magazine published the neces­
sary retraction. It was not until after communica­
tions had been sent to every bank in the United States,
to every member of congress, and to numerous other
parties that the readers of the paper were informed in
March that the statement of the previous October
was erroneous.
The case involving the constitutionality of tax ex­
emption, appealed from the Federal court in Kansas
City, was argued in the Supreme Court of the United
States, January 6th-7th and 8th, to a bench of eight
judges, Judge Brandeis absenting himself and taking
no part. The court held the case under considera­
tion until the last days of April and then ordered it re­
argued, at a later time fixing October 11th as the date
for the rehearing.
It is possible that any one of three decisions may
be finally handed down by the court. The court may
decide that the bonds are taxable; that they are tax
exempt, or it may dismiss the case for lack of juris­
diction. If the case is dismissed for lack of jurisdic­
tion, it is expected that a case now pending in Alabama
will be carried up. The Alabama case involves a dif­
ferent question from that of the Kansas City case,
and against which the question of jurisdiction will
not be raised. It involves the right of the state of
Alabama to collect a recording tax. In March, 1920,
Judge Towsley refused to record mortgages for the
Federal Land Bank of New Orleans without the pay­
ment of a recording tax imposed under a new law en­
acted by the legislature of Alabama. The trial of the
Alabama case in the lower courts has been postponed,
pending the decision of the United States Supreme
Court in the Kansas City case.
If the Kansas City case is decided in favor of the
Federal Land Banks that will probably dispose of the
Alabama case, but if the Kansas City case is dismissed
for lack of jurisdiction, the Alabama case will present
the issues in a different and better form.
If the Supreme Court decides in favor of the Fed­
eral Land Banks, it will only be a short time until
congress will amend the law to subject the bonds to
taxation. The taxpayers and consumers of the coun­
try, who are not farmers, and over ninety per cent of
the farmers of the country who are not land bank
borrowers will bring a growing pressure upon con­
gress to compel wealthy investors to bear their fair
share of the burdens of taxation.
Under the agricultural credit system in vogue in
France, loans are never made for a longer period than

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October, 1920

THE

NORTHWESTERN

twenty-five years. A further restriction is made that
a loan must mature before the borrower passes the
age of 65. If the borrower is fifty years of age the
loan limit is fifteen years. From a practical business
standpoint, that is an improvement over the American
plan, under which a man seventy-five years of age
might make a loan maturing in 3 5 y years, at which
time, if alive, the borrower would be over 110 years
of age. In Europe the rural population remains for
many succeeding generations on the same farms. In
America conditions are different, and it is seldom that
the second generation is completed in the same rural
home. Under these circumstances, it would appear to
be a matter of business prudence to shorten the term
of the American loan so that a larger proportion of
the loans made would be paid by the original bor­
rowers instead of by their successors.
The amortization of the loans under the Federal
Land Bank plan is one of the strong talking points of
the supporters of the system. It is claimed that amor­
tization of principal, reducing the obligation of the
borrower, encourages him to thrift and increases the
security of the investor. Under the 35 year plan now
in vogue, the amortization during the first years of
the period is so light as to afford neither encourage­
ment to the borrower nor security to the investor.
At the end of ten years the farm borrower has only
reduced his principal to the extent of $128.76 on a
35 year loan amortized by equal annual payments.
This averages $12.87 per year per thousand for the
first ten years. The depreciation of fences alone
might easily exceed the amortization payments. Care­
less cultivation, permitting noxious weeds to grow in
the fields, failure to paint or reshingle the buildings
might cause losses far in excess of the amortization
of the first ten years.
A different plan of amortization providing for a
fixed payment on the principal and a diminishing an­
nual installment, including interest and principal,
would provide for more rapid amortization of the loan
during the earlier period. It would by diminishing
the annual installment due, make it easier for the bor­
rower to meet his payments in his advancing years.
Very few borrowers realize the enormous amount of
interest that they pay on a Federal Land Bank loan
under the present system of amortization.
To prove my point I will give three illustrations
taken from carefully prepared tables: The borrower
of $1,000.00 payable in twenty annual installments of
$50.00 each, with interest added, at the end of twenty
years will have extinguished his debt, having paid
$1,000.00 principal; $537.50 interest. The borrower of
$1,000.00 under the Federal Land Bank amortization
plan, at the end of 35 years, making equal annual pay­
ments of $65.00 each, including interest at Sy2 per
cent, extinguishes his principal of $1,000.00 and in the
meantime has paid $1,272.50, as compared with $537.50
interest paid by the twenty year borrower, who exTwenty-four— N W Banker 4738— Gord ‘“ <T ofq‘ag—
tinguished his loan fifteen years sooner. The bor­
rower of $1,000.00 for forty years, paying annual in­
stallments of 2
per cent on the principal, plus in­
terest at 5 y per cent, extinguishes his loan at the end
of forty years. In the meantime, he has paid $1,000.00
principal and $1,127.50 interest. Although his loan
runs for a period five years longer than the Federal
Land Bank loan, the total interest paid is $145.00 less.
(Continued on page 123.)

117

BANKER

FARM
LOANS

W e have funds for standard loans
up to $75 per acre.
Applications considered for loans
from $75 to $125 per acre.
Midland Service gives you an ou t­
let for all classes of loans.

A. M id ­

land connection will pay you.

Midland Mortgage
Company
418-20 Cedar R ap id s Savings
B an k B u ild in g
Cedar R ap id s

-

-

O FFICERS AN D D IRECTO RS
F. C. W aples, President
Clifford DePuy, Vice President
Robert S. Sinclair, Vice President
Ingram Bixler, Secretary-Treasurer
R . J. Soener, A ssistant Secretary
W . L. Cherry
W . W . O tto
. P. C. Rude

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Federal Reserve Bank of St. Louis

Iow a

118

THE

NORTHWESTERN

INVESTM ENT
Investment Bankers Convention.
The ninth annual convention of the Investment
Bankers Association of America is called to meet at
the Copley-Plaza Hotel, Boston, October 4th, 5th and
6th, 1920.
At this convention there will be selected a president,
five vice-presidents, a secretary, a treasurer for the
ensuing year ; eight members of the board of gover­
nors for the term of three years ; and two governors to
fill unexpired terms ; and the transaction of other busi­
ness.
The reports of officers and committees, covering the
past year’s work, will be submitted and subjejcts of
interest to the banking and commercial interest of the
country which affect the investment bankers and the
investing public will be discussed.

Grasshoppers.
Once upon a time, in a time when fairy tales were
true, there lived in the country a family of grasshop­
pers and a family of ants. Some authorities incline
to the belief that the grasshoppers were addicted to
the jazz dance and the fiddle, but one is at liberty to
doubt this. The grasshoppers were industrious. They
worked in the field side by side with the ants, they
wore good clothes and chewed good tobacco.
In those days, as now, the first impulse or instinct
of mortal or insect was to fill his stomach. If men
could eat without working few would work. The
grasshoppers worked diligently at the task of gather­
ing herbs and grains, but as fast as they gathered
they consumed, so that the setting sun found them
none the the richer save a comfortable fullness about
the middle.
The ants did not neglect the business of eating.
They fared well, but they had the savings habit and
they did not wear silk shirts while performing tasks
that suggested overalls.
The grasshoppers called the ants tightwads. They
did not use this expression in the presence of the ants.
It is as well to keep on good terms with a tightwad.
Perchance one may need to borrow from him before
the next pay day arrives.
Through the long summer the grasshoppers toiled
and fed their faces, dressed to impress the neighbors
and petted their appetites, and when the first frost
of an early winter killed the green things in the field
not one of them had a square meal in reserve.
When grasshoppers find the rations short they cast
about to find someone on whom to fix the blame. As
they stood in groups about the dismal field making
talk concerning the injustice of the general scheme of
things, one of their number who enjoyed making
phrases, hopped on a withered flower stem and un­
burdened his mind.
“ W e would not be hungry,” he declared, “ if we had
the courage to demand our rights. There is enough
wealth in the world for everybody. All that we ask
is a fair division. W e are dead broke, while' the
ants have their barns filled to overflowing. Is this
right? Is this justice? Is this democracy? I tell
you, my downtrodden brethren, that we are .victims
of a greedy and hateful system and shall all miserably


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Federal Reserve Bank of St. Louis

BANKER

October, 1920

SECTION

perish unless we establish universal brotherhood and
divide this supply of food accumulated by the ants.”
I realize that all this seems incredible, but I hasten
to assure you that it happened once upon a time, in
a day when fairy tales were true and grasshoppers
knew nothing of savings banks and had no brains
worth mentioning.— Saturday Evening Post.

SMALL INVESTOR IS FURNISHING CAPITAL
FOR BOND HOUSE.
(Continued from page 12.)
marks that before the war the average more likely would
have been $15,000, explaining that the income tax has
driven the large purchaser of securities— in blocks of
$10,000 to $100,000—almost entirely out of the market.
A more public example is to be found in the offering
early in September of $100,000,000 in French govern­
ment bonds. As is well known the syndicate books on
that issue were open only one hour and the entire offering
was heavily oversubscribed, with purchasers in every state
in the Union excepting two. Thirty-nine thousand peo­
ple purchased the French bonds and, what is more to the
point, subscriptions for $100 to $5,000 of the securities
totaled $69,000,000—nearly 70 per cent of the total.
A more detailed analysis is. contained in the statement
by the National City Company, a national bond selling
organization that handled part of the French bond offer­
ing. This firm showed an average sale, on all subscrip­
tions, of $3,324. There were 3,422 subscriptions from
individuals who took $5,000 or less each, distributed as
follows :
Subscriptions for $100................................ 319
$101 to $500................................................. 602
$501 to $1,000...................
1,032
$1,001 to $2,000............................................ 499
$2,001 to $5,000............................................ 976
Charles E. Mitchell, president of the National City
Company, declares that this average figure and the dis­
tribution to small investors was about on a par with the
company’s experience on other recent offerings of corre­
spondingly attractive securities.
The conclusion is clear. The small investor is buying
securities on a large scale, and the bond houses that culti­
vate him first will be the first to recover from the slump
in their business during the last year. We should at the
same time bear in mind that from the small investor must
come new capital, as the rich man can’t be attracted any
longer, when there is still the prospect of a large share of
his income going to the government, unless it is of the
category that is exempt from taxation.
As a means of protecting the small investor who is
holding government bonds with a greatly depreciated
value, there is a growing sentiment in favor of the re­
funding of the liberty bonds and victory notes at a rate
of interest that will bring about their permanent place­
ment with investors.
Under present conditions, with sound railroad and in­
dustrial securities selling on a basis to yield around 8 per
cent a steady stream of war bonds is being forced on the
market by persons who bought them under pressure of
the national emergency and now are seeking a better re­
turn on their money. The result is the government bonds
find their way through brokers and the banks to the fed-

October, 1920

THE

NORTHWESTERN

eral reserve banks, which they are clogging at a time
when there is need that all the resources of the reserve
system should be made available for commercial demands.
Some bankers favor the refunding of the war issues
into bonds bearing 5 or 5j4 per cent interest, with some
of them subject to calling by lot for redemption. Such
a plan, they argue, would add greatly to public interest in
the securities. Others suggest a refunding plan to start
with a new issue at 6 per cent with provision that the in­
terest rate be reduced to
per cent in three years, to
5y2 per cent in six, and so on down to the present 4j4 per
cent rate, the idea being that by the time this low level
is reached the rate will be more in line with current mar­
ket conditions and the country will be tided over the
period of after-war financial readjustment.
It is not entirely irrelevant to remark at this point that
the French flotation was the most successful offering of
securities this year. Enthusiastic acclaim and immediate
oversubscription of the issue, yielding 8 per cent, suffi­
ciently define the faith of investors in the credit of the
Republic. Moreover it was taken as certain that the
$500,000,000 Anglo-French loan maturing in October
would be promptly redeemed, thereby giving an addi­
tional prop to French government credit.
However popular the new issue may be in America and
however conservative the spirit of the law of July 31,
1920, under which it was put out, some of the foremost
French economists and financiers find grave dangers in
the financial system lately in vogue over there and are
free to say that the safety of the future rests on the wis­
dom with which the ministry of finance adheres to the
spirit of the new law and avoids short-sight attractions
to bring subscribers, regardless of the long-range interests
of French taxpayers.
A recent article in L’Economiste Française, by Andre
Liesse, member of the Institute, warns the government
that its recent practice, though very easy in “the seven
years of the fat kine”— recalling Pharaoh’s alarming
dream—may prove to be very troublesome when the
“ seven years of lean kine” roll around. Below is trans­
lated the substance of the article to show how serious
may be a few years hence the carrying of the burden
which is now being lightly assumed to bridge the urgent
needs of the present time of stress. M. Liesse says :
“ The law of July 31, 1920, provides for the issue of
perpetual rentes bearing the nominal rates of 6 per cent
and neither redeemable nor convertible in whole or in part
prior to January 1, 1931. The issue is NOT exempt from
all taxes—as the current phrase inaccurately says— for the
good reasons that all receipts on account of this loan (as
in the case of all other state loans) must be figured in
the declaration for the universal tax on revenues. Its im­
munity from taxation is limited to the supplemental and
subordinate taxes which strike all other securities. The
total authorized issue is not limited by the law ; amounts,
dates, rates, subscription terms, modes of payment and
redemption and other technical details being left for de­
termination at the time of issue.
“ These general lines of the law indicate that the min­
istry of finance desired to adopt a normal type of loan,
founded on the true principles of public borrowing, yet
adapted to the actual state of affairs, financial and eco­
nomic. We have frequently insisted that the actual con­
ditions ruling in the money market should be observed in
such operations. It is puerile to seek magic combinations
in the hope of showing that advantages offered to sub­
scribers are not hostile to the present and future inter­
ests of the government. The simple reality deceives no­
body.

BANKER

119

SAFETY—
the
bed-rock
foundation
o f Financial
Independence
Financial independence is not merely for
the few. It can be reached by any one
who is properly informed— who avoids
the rocks and shallows— who knows the
deep, safe ways to the desired goal.
Many of the right ways have been found
by experience and can be learned by
those who desire to benefit by these ex­
periences.
This organization has been instrumental
in helping many who have learned how
through experience.
The same help is yours for the asking.
Some of the right plans and safeguards
are outlined in a new pamphlet entitled
“ Prices and Values.”
f * • - J ..
It will be sent without obligation on re­
quest for pamphlet MN-4.

A.B.Leach&Co.,Inc.
Investment Securities
New York
Philadelphia
St. Louis
Boston

Minneapolis
Milwaukee
Cincinnati
St. Paul

Baltimore
Cleveland
Detroit
Duluth

105 S o u th L aSalle S t ., C hicago

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Federal Reserve Bank of St. Louis

120

THE

NORTHWESTERN

A n In tern a tio n a l In v e stm e n t
Service

H. V. Greene Company
Boston

New York

Philadelphia

N O W O F F E R IN G :

First People’s Trust
Bankers Union for Foreign
Commerce and Finance,
Inc.

B ran ches in P rincipal C ities o f U . S.
and C an ad a. C orresp on d en ts in
E urop ean C ap itals.

Help the credit
situation at
the banks

Put your
business in a
safe position

WE WILL MAKE

Long Time Timber Loans
ONE TO TEN YEARS
We are prepared to finance timber operators
and lumber manufacturers on a one to ten year
basis and at rates consistent with the credit
situation now generally prevailing throughout
the country.
Correspondence invited from bankers, timber
operators, and lumber manufacturers.

Baker, Fentress & Co.
SUCCESSORS TO
L y o n , G ary & C o m p a n y

ESTABLISHED 1891
Investment Bankers

208 South LaSalle Street

CHICAGO

BANKER

October, 1920

“ From the table of amortizations tardily published in
the Official Journal July 8, 1920, we can measure the ex­
tent of the charges our budget must stand in the future,
say in twenty years, when the number of series to be re­
deemed is rapidly increasing. Footing up the total it will
be necessary to pay Fes. 24,255,000,000 for a total of
Fes. 16,150,000,000 obtained by the treasury. Since the
chance of conversions is very slight the total interest pay­
ments at the end of sixty years, 1980, will reach Fes. 32,114,000,000. So that interest and amortization payments
will come to Fes. 56,369,000,000.”
Turning these amounts into dollars at parity of ex­
change it appears that the French treasury to obtain
$3,230,000,000 has contracted to pay an amount which in
sixty years will mount up to $11,268,000,000 in principal,
premiums and interest.
“ Net yield” quotations in the market do not represent
the actual cost of capital when obtained on terms like
those being granted by continental governments. The
nominal rates on rentes are 4 or 5 per cent, but no dis­
count they have touched in the market gives any idea of
the “effective rate.” The “ discounted value” of the prin­
cipal, premium and interest payments to 1980 represents
an annual compound rate of 23.1 per cent and a compound
interest rate of 12.1 per cent.

THE

RALSTON - NOLAN BILL AND
AMERICAN FARMER.

(Continued from page 25.)
that he has no federal land tax to pay, and by a continua­
tion of his unscientific methods remains immune to this
form of taxation.
The thrifty tenant, on the other hand, forward look­
ing and progressive, has, by his own skill and industry,
added $100 per acre to the intrinsic value of his own land;
has helped to add value to similar land owned by his
neighbors; and has contributed to the growth and devel­
opment of the whole community. What else has he done ?
While engaged in this laudable undertaking, he has in­
creased the assessable value of his 160 acres from $8,000
to $24,000 and is, therefore, compelled to pay an unjust
tax on $14,000 value actually created by himself.
No elaborate argument is required to show that the
Ralston-Nolan bill is primarily designed to be the enter­
ing wedge in a scheme artfully designed by the single
taxers whose known purpose is the gradual nationaliza­
tion of all land.
The originators and advocates of the Ralston-Nolan
bill, whose mediocre minds but feebly counterfeit a dim
reflection of the daring genius of Henry George; whose
sordid motives are but degenerate descendants of his
splendid altruism, present neither original arguments,
sound financial reasons, nor economic justification for
their rank departure from the equitable principles of tax­
ation. Their banal selfishness has so blinded them that
they ignore alike the gross discrimination featured in the
bill, and the glaring failures time has recorded for local
trials of the single-tax theory. Not a single argument
presented in favor of their bill is of sufficient merit to
justify serious consideration, and could only appeal to
men whose credulity and gullibility unfit them for the
duties of citizenship—unless, indeed, it be those whom
long immunity from bearing their proportionate share of
the expenses of the federal government, has rendered
frantic in their eagerness to resume unhindered their
former spoliation of the public and the national
treasury.

R ea d ers will c o n fe r a fa v o r Toy m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers.


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Federal Reserve Bank of St. Louis

THE

October, 1920

THE

NORTHWESTERN

121

BANKER

National Investment and
Finance Company
310 Fleming Building
Des Moines, Iowa

Offering service to bankers, cattle dealers, feed­
ers, and distributors of automobiles, trucks and
tractors ; financing going concerns of unquestion­
able merit thru our cooperative plan.
O FFIC E R S A N D D IR E C T O R S
C. S. Cobb

Vice President

-

E. R . Holland

-

Vice President

J. B. Burns

Treasurer

Jansen Haines

Secretary

M . H. Cohen
Chas. Y. Neal

General Counsel
Comptroller

Geo. N. Felgar, M t. Pleasant

Director

J. E. Buland, Storm Lake

Director

0 . C. Sorlien, Bode

Director

R. W. Harper, Des Moines

D irector

J. C. Lambertson, Osceola

Director

A. C. Savage, Des Moines

Director

C. F. M om yer, Algona

D irector

James Phelan, Grand Junction

D irector

Let Us Cooperate W ith Y ou

Readers w ill confer a favor by mentioning THU N O R T H W EST ER N B A N K E R when writing to our advertisers.


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Federal Reserve Bank of St. Louis

122

THE

NORTHWESTERN

BANKER

October, 1920

Stock Dividends Are Not Taxable
— U N ITED STA TES SUPREM E C O URT D ECISION

Millions upon millions of dollars have been overpaid in taxes by the taxpayers
of the United States on income derived from stock dividends.
Now the supreme question is—

H ow to Secure a Return o f the
M oney Paid for Such Taxes
Bulletins number 2 and 4 of the Journal’s Federal Tax Service for 1920
set forth in clear, concise, simple English the exact steps to be taken to secure
these overpayments.

T h a t’s Just O ne Point O ut o f M any T hat
W ill Be o f B enefit to Y o u
This service especially prepared for bankers and used by hundreds of banks all
over the United States, gives you information quickly and accurately upon every
imaginable angle of Federal Taxes. There are special bulletins every week which
cover all new decisions, important changes and questions.
OUR AUDITING SERVICE SAVES THOUSANDS OF DOLLARS every month
for our clients. We have been especially successful in helping hanks. Inad­
missible assets, improper depreciation, incorrect handling of reserves, improper
deductions for expenses, incorrect dividend payments, non-re-instatement of
capital assets—these and many other loop holes have cost banks many dollars in
extra taxes.
You would like to know about this service. Write us.

FEDERAL TA X SERVICE DEPARTMENT

MERCHANTS TRADE JOURNAL, Inc.
Des Moines

Seventh Floor Munsey Bldg., Washington, D. C.
Chicago
New York
Cincinnati
Indianapolis

R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d v ertiser».


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Federal Reserve Bank of St. Louis

October, 1920

THE

NORTHWESTERN

BANKER

TAX EXEMPTION IS INSIDIOUS FOE OF THE
FINANCIAL WORLD.
(Continued from page 117.)
During the first ten year period of the forty year
loan the borrower reduces his principal $250,00, as
compared with $128.76 under the Federal Land Bank
plan. During the first ten years he also pays consid­
erably less interest than is charged under the Federal
Land Bank plan.
It is apparent that on either the twenty year plan
or the forty year plan, this method of amortization af­
fords better security to the investor and provides a
better stimulant and encouragement to thrift on the
part of the borrower.
The Federal Land Banks have found it imprac­
ticable to sell thirty-five year bonds. The joint stock
land banks also found it necessary to put on the mar­
ket twenty year bonds. Both of these classes of
banks are now confronted by the embarrassing pre­
diction that it will 'be necessary to refund their twenty
year bonds at a higher rate of interest in order to
carry their loans to maturity.
Under the plan I propose of having, 5 per cent of
principal paid annually, the bond and mortgage would
mature at the same time.
If the borrower were not so situated that he could
pay 5 per' cent of the principal annually, he could bor­
row on the other plan, requiring payment of 2y2 per
cent of the principal annually, fixing the maturity of
the loan at twenty years. This would enable the bor­
rower to pay half of his loan in twenty years, when
the bond matured. At that time, if unable to pay the
balance on one payment, he could make a new loan
for the remaining half of the principal. then unpaid.
Under these circumstances, this borrower would at the
end of twenty years be better off than the borrower
from the Federal Land Bank on the 35 year plan. He
would owe $500.00 on each thousand of his original
debt, while the Federal Land Bank borrower would
owe $651.32 on each thousand on his debt at the end
of twenty years, he having paid only $348.68 or a
trifle over one-third of his principal.
It may be argued that it would be difficult for a
borrower to pay $25.00 per year per thousand on his
mortgage. Unless the earning capacity of a borrower
is sufficient to enable him to pay 2y£% of his prin­
cipal annually, no self-respecting Farm Mortgage
Banker would offer the loan to an investor.
There is a growing demand for amortization loans.
A few life insurance companies have already success­
fully made this demand. All could easily arrange to
furnish twenty year amortization loans to customers
who desire them without interfering with their present
loaning system. The successful merchant carries a
stock of goods to meet the demands of his trade. The
development of a public appetite for bonds of small
denominations and for -securities guaranteed by com­
panies of national reputation for reliability has been
noticed since the first Liberty bond campaign. For
over fifty years large companies in Canada have made
farm mortgage loans and issued their own debentures
against them in salable denominations. Companies
organized on a similar plan in the United States might
find the field very profitable. Organization of such
corporations under state laws could be affected if it is
not desirable to wait for congressional action. To
command public confidence such loaning corporations
would require not less than $5,000,000 or $10,000,000
capital and $50,000,000 would be better.

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

T h e First National
Bank of Chicago
Jam es B . F org a n , C h airm an o f th e B oa rd
F ran k 0 . W e tm o re , P resid en t

and the

First Trust and
Savings Bank
Jam es B . F org a n , C h airm an o f th e B oa rd
M e lv in A . T r a y lo r , P resid en t

offer a com plete financial service,
organized and m a i n t a i n e d at a
marked degree o f efficiency.
Calls
and correspondence are invited rela­
tive to the application o f this service
to local, national and international
requirements.

Combined Resources over $300,000,000

H eaders w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers.


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Federal Reserve Bank of St. Louis

123

THE

124

NORTHWESTERN

BANKER

October, 1920

GILGER E. MacKINNON DIES.

What the Teller
Told M e!
HAD just finished cashing a check at
the window, and as there was no one
behind me in the line I stopped a few
minutes to chat with the Teller. We fre­
quently discussed other subjects than the
weather, and so I said, “ You have a chance
to size up the successful men in this town,
tell me which one in your opinion is the
biggest success in every way.”

I

The Teller looked at me a second and
smiled; rested his arm on the counter and
remarked, “ If you measure success alone
by dollars, of course Mr. Upham is the
wealthiest man, but money is all he has.
He has no friends, takes no part in the de­
velopment of the community, and is as
tight as the bark on a tree. Personally, I
think Mr. Arnett is by far the most success­
ful man in town. He has made a success
of his business and has as much money as
he needs for his own wants, besides having
a good surplus put away in safe invest­
ments for a rainy day. Every person in his
employ works with him, not for him. No
deserving institution or cause has ever so­
licited him for funds and been refused.
The progress of the town in civic matters is
due very much to his efforts. His theory is
that if you do not like the place you live in,
move out, but if you stay, for heaven’s sake
be a booster and do your part to assist in
the progress of the community.”
“ That sounds like a pretty good formula
to follow,” I remarked, “ but doesn’t his
business suffer when he does so much out­
side work.”
“ Apparently not,” replied the Teller,
“ for he has increased his business every
year since it was organized. His theory is
this: Too many men get in a rut in their
business. They are in a groove and all
because they do not read or think or talk
anything but their business, and the man
who thinks only about his own business
can’t always think intelligently about that.”


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

Gilger E. MacKinnon, president of the Mechanics
Savings Bank of Des Moines, died September 25th
after a long illness. Mr. MacKinnon was taken to the
hospital for a minor operation which was apparently
successful but blood poison developed. He made a
strong fight for life and began to improve but con­
tracted pneumonia and succumbed to the disease.
Mr. MacKinnon was a native Iowan, spending his
early life at Cherokee and later living in Laurens.

GILGER E. MAC KINNON

He then came to Des Moines, associating himself
with Simon Casady in the banking business. He
founded the Mechanics Savings Bank seventeen
years ago and became cashier of the institution, later
advancing to president. He served one term as vice
president of the Iowa Bankers Association.
He was treasurer of the Des Moines Consistory
Number 3, and of.Za-Ga-Zig Temple, Nobles of the
Mystic Shrine, and was active in civic affairs.
Fund for Robber Catching.
Bank robbers hereafter should find St. Paul an un­
healthy place to ply their trade, for bankers are taking
extra precautions to guarding their funds.
Thirty-six banks have entered a pact in which they
agree to pay $5,000 for capture and conviction of
persons attempting to rob, or caught robbing, a St.
Paul bank.
This is in addition to the $250 offered by the Minne­
sota State Bankers association and $100 offered by
insurance companies.

October, 1920

THE

NORTHWESTERN

BANKER

R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to owr a d vertisers.


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Federal Reserve Bank of St. Louis

125

THE-

126

NORTHWESTERN

October, 1920

BANKER

IN D E X TO A D V ER TISER S
A
A d a m H a n n a h C o ........... .................
75
A m e r ic a n B a n k P r o t e c t io n C o . . . . . . 73
A m e r ic a n B o n d in g an d C a s u a lty C o . 102
A m e r ic a n C o m m e r cia l an d S a v in g s . 43
A m e r ic a n E x c h a n g e N a t i o n a l ,......... 74
A m e r ic a n F ix t u r e C o ............................. 84
A m e r ic a n M o r t g a g e a n d S e c u r itie s . .112
A m e r ic a n N a tio n a l B a n k . . . ................ 75
A m e r ic a n P e r f o r a t o r C o ...................... 97
A m e r ic a n S ta te
B a n k ............ ;••••••• 66
A m e s N a tio n a l ....................
40
A n d e r s o n , C la u d e F ................................. 98
A n d e r s o n -T h o m p s o n Co ....................... 123
A t la n t ic N a tio n a l B a n k ......................... 79
B
B a c k e r , J a c o b .......................................... £4
B a k e r , F e n t r e s s & C o........................... 120
B a llin g a ll H o t e l ..........................
®6
B a n k e r s A c c id e n t In s u r a n c e C o . . . . 103
B a n k e r s A u t o In s u r a n c e C o .................104
B a n k e r s E x c h a n g e ................................. 41
B a n k e r s M o r t g a g e C o ........... .................. 118
B a n k e r s T r u s t Co., D e s M o i n e s . . . . 43
B a n k e r s T r u s t C o., N e w Y o r k . ......... 83
B e a c h , W il l A ., P r in t in g C o ................ 61
B e a ch , W . W „ C o ..................I ................. 97
B illin g s , P r o u t y & T o m p k i n s ........... 39
B ish o p , E . J ......... ........................................ 1"5
B la c k H a w k N a tio n a l B a n k .................. 54
B o n d & M o r t g a g e C o ...............................113
B o y d & M o o r e ......................................... - 47
B re a m , E m o r y D ................... •.................. 10»
B r o w n H o t e l ............................................• 65
B r o w n B r o s . & C o...................................
®
B r y d e n , W m ., & C o ......... ......................... 125
B r u n d a g e , B. R ...................................
50
C

F e d e r a l C a ttle L o a n S o c ie t y ................113
F e d e r a l D e p o s it & T r u s t C o . ; ........... 39
2
F e d e r a l L a n d B a n k , O m a h a ...........
F i r s t N a tio n a l B a n k , M in n e a p o lis .. 74
F ir s t N a tio h a l B a n k , B o s t o n ............. 79
F ir s t N a tio n a l B a n k , B u r l i n g t o n ... 54
F ir s t N a t io n a l B a n k , C h ic a g o ........... 123
F i r s t N a tio n a l B a n k , C o u n c il B lu f fs 46
F ir s t N a tio n a l B a n k , D a v e n p o r t ...
2
F ir s t N a tio n a l B a n k , D u b u q u e ------ 42
F ir s t N a tio n a l B a n k , D u l u t h . . . . . . . 75
F i r s t N a tio n a l B a n k , O m a h a .............. 2
F ir s t N a t io n a l B a n k , S io u x C i t y . . .
2
F ir s t N a tio n a l B a n k , St. L o u i s . . . . . . 53
F ir s t N a t io n a l B a n k , St. P a u l . . . . . . 73
F ir s t N a tio n a l B a n k , W a t e r l o o . . . . 46
F ir s t T r u s t & S a v in g s B a n k ................ 52
F is h e r C o m p a n y . . . ........... ................... " l
F t . D e a r b o r n N a tio n a l B a n k ............. . at
F o th e r in g h a m , W r ig h t & C o..............125
G
G ates, R e n f r e w W . ........................... ’ - ,1 co
G ir a r d N a tio n a l B a n k .......••...........■• 59
G o d sh a ll, O. . . . . . . . . . •* • ................ •'•■‘•¡jS
G o o d y e a r T ir e & R u b b e r C o ............... 92
G o r d o n -V a n T in e C o . . . ........................., Xo
G r e a t W e s t e r n A c c id e n t In s. C o ........ 109
G r o t h -H o s t e t le r C o.................
£2
G räen , H . V . C o ................. .. ■.................. ° 2
G u a r a n ty L if e In s u r a n c e C o........ •••I»®
G u a r a n te e M o r t g a g e & F in a n c e C o .lib
G u a r a n ty T r u s t C o...................................
G u th rie, W m . & C o ................... ..............

N
N a tio n a l A m e r ic a n L i f e ..........................106
N a tio n a l B a n k o f th e R e p u b l i c . . . . .127
N a tio n a l C ity B a n k .................................. 70
N a tio n a l C ity C o m p a n y ......................... 82
N a tio n a l F id e lit y L ife Ins. C o..............104
N a tio n a l I n v e s t m e n t C o......................... 121
N a tio n a l P a r k B a n k ............................... 77
N a tio n a l an d S ta te B a n k e r s P r o t e c ­
tiv e A s s o c ia t io n .................................... 61
N e w s P r in t in g C o..................................... 60
N o r th e rn T r u s t C o...............
35
N o r th w e s t e r n N a tio n a l B a n k .................. 3
N o r th w e s t e r n N a tio n a l L i f e ................ 2
N o r th w e s t Stam p. W o r k s ........... ..
74
O
O ffic e S p e c ia lt ie s C o .............................
O m ah a N a tio n a l B a n k .........................
O m a h a L ife In s u r a n c e C o ............... •
O m ah a P r in t in g C o ..............................
O v e r s tr e e t, J. W . C o.............................

81
69
oo
68

74

P

P a c k e r s N a tio n a l B a n k ...................... 67
P e a r se , R o b in s o n & S p r a g u e ........... 71
P e o p le s S a v in g s B a n k .................
44
H
P e o p le s T r u s t & S a v in g s B a n k . . . . 57
H a m m o n d P r in t in g C o . , ......................... |9 P o n c h e r P tg . & L it h o g r a p h in g C o.. 75
P o c a t F in a n c e C o .................................... 114
H a m m a r s tro m , A . H . . ........................
P r e s to n , C has. H. C o............................. 75
H a n o v e r N a tio n a l B a n k ........................
H a n se n & W o d e n ......................................
R
H a r g e r & B l i s h . ......................................
H a r r o p , W . C. & C o ........ ..........................
R h o d e s , W a lt e r H ..................................... 70
H o m e s te a d C o m p a n y .............................
R o y a l U n io n M u tu a l L i f e .................. 1 0 2
H u ll, W illia m ...........................................1 ^ R o y a l H o t e l ............
44
H ü lse , W . E , & C o . . . ..................••••
&
S
I
S a n fo r d , M o rr is ................................. .. •• 87
I o w a B o n d in g & C a s u a lty C o .............. 110 S ch la m p p , F r a n k C o ............................... »b
I o w a G u a r a n ty M o r t g a g e C o r p .........125 S e a b o a rd N a tio n a l B a n k ............. .. . . . b4
I o w a L it h o g r a p h in g C o .: ...................... »» S econ d N a tio n a l B a n k . . . . . . ........... 55
I o w a L o a n & T r u s t C o . . ------BE..........'
S e c u r ity N a tio n a l, S io u x C it y ......... 57
I o w a M u tu a l L ia b ilit y In s. C o . . . . . 109 S e c u r ity N a tio n a l, S io u x F a l l s ......... bO
I o w a N a tio n a l B a n k , D e s M o in e s •• 45 S e c u r ity S a v in g s ...................................... 63
I o w a N a tio n a l F ir e In s u r a n c e C o . . . I l l S haw , C h a rles F ................................... ‘
47
I o w a N a tio n a l B a n k , D a v e n p o r t ------ 56 S io u x N a tio n a l ........... •••........................
I o w a S ta te I n s u r a n c e C o . . . . . . ; ••• i « » S io u x F a lls N a tio n a l B a n k ................ 64
I o w a S ta te T r a v e lin g M e n s A s s n . . 105 S io u x F a lls S a v in g s B a n k ............... 63
I o w a T itle G u a r a n ty C o ...........................i i j S n a pp H o t e l ...................
”2
I o w a T r u s t & S a v in g s B a n k ............... 44 S ta te A u t o In s u r a n c e A s s n ............... 1 0 1
I n t e r -S ta te S u r e ty C o...................
£3 S ta te C e n tr a l S a v in g s B a n k . . ......... 47
S to c k Y a r d s N a t’l B a n k , O m a h a . . . . 67
I r v in g N a tio n a l B a n k .............................
S to c k Y a r d s N a t’ l B a n k , So. St. P a u l 51
J
St. P a u l S ta m p W o r k s . . . ' ............... 75
S w ig e r t -H o w a r d S h irt C o . . ............. 50
J o h n H a n c o c k L ife In s , C o.................. 103
T
J o y c e , W m . B . & C o . . ........................... !0 0
J o r d o n B r o s, S io u x F a l l s .................... »5
T im b e r L a k e S c h o o l D i s t r ic t ............. 65
T o y N a t io n a l B a n k ............................... 40
K

C a p ita l C ity S ta te B a n k ...................... 43
C a p ito l H ill B a n k .................................... 41
C a p ito l N a t io n a l B a n k .................
76
C a rlso n , J. L . . ............................................. 96
C ase, J. I., P lo w W o r k s C o ................. 33
C ed ar R a p id s N a tio n a l B a n k ............... 48
C ed ar R a p id s L i f e ...............
102
C e n tra l L i fe .............................. . . . . . .1-07
O e n tra l N a tio n a l F ir e In s. C o...........107
C e n tr a l S ta te B a n k , D e s M o i n e s . . . . 52
C e n tr a l T r u s t Co., o f I l l i n o i s ........... 65
C e n tr a l T r u s t Co., o f D e s M o i n e s .. 48
C itiz e n s S a v in g s B a n k ........................... 41
C itiz e n s N a tio n a l B a n k ......... ............... 47
C ity N a tio n a l B a n k , C l i n t o n ................ 46
C la rk , B y e r s & H u t c h in s o n .................125
C la s s ifie d A d s
.
••I 99
C lip le s s P a p e r F a s t e n e r C o ................ 93
C o in m e te r C o m p a n y ...............
34
C o m m e r c ia l. N a tio n a l, W a t e r l o o . . . . 43
C o m m e r cia l S a v in g s, M a so n C ity . . . 46
C o m m e r cia l S a v in g s, D e s M o i n e s ... 128
C o m m o n w e a lth L ife In s u r a n c e C o .. 103
C o m m u n ity S e r v ic e S ta tio n C o ........ 94
C o n s e r v a t iv e L ife In s u r a n c e Co. ..1 0 6
C o n su m e r s S e r v ic e S t a t io n s .............. 4
C o n tin e n ta l a n d C o m m e r cia l B a n k s . 24
C o n tin e n ta l N a t’ l B a n k , S io u x C ity 42
C o n tin e n ta l M o r t g a g e an d L o a n Co. 127
C orn E x c h a n g e N a tio n a l B a n k ......... 31 K r u s e , O. A . C o........ .............................. 60
C o u n cil B l u f fs S a v in g s B a n k ........... 44
C r a d d ic k A d v e r t is in g S e r v i c e ........... 28
L "
C u m m in g s, B. F . C o ........... . ................. 94
L e a ch , A . B. & C o .. . • •••• •- • •-H -••••*■12
D
L e a v it t & J o h n s o n N a tio n a l B a n k .. 57
L e a v it t & J o h n s o n T r u s t C o ...............
2
D a k o t a T r u s t & S a v in g s .................... 65 L e M a rs P r in t in g C o .............................. ™
D e s M o in e s D u p lic a t in g C o .. . . . . . .125 L e n o x F u r n a c e C o................................... " "
D e s M o in e s L ife & A n n u it y C o ........ 106 L ig h t n in g C oin C h a n g e r . . . . .............. »5
D e s M o in e s M o r r is P la n C o ................. 33 L in d s ly F ir e E x t in g u is h e r C o........... 9b
D e s M o in e s N a tio n a l B a n k ...........
49 L io n B o n d in g & S u r e ty C o . . . . . . . . .1 1 «
D e s M o in e s R u b b e r S ta m p W o r k s . . 47 L iv e S to c k E x c h a n g e N a t l B a n k .. 70
D e s M o in e s T e n t & A w n in g C o . . . . . 98 L iv e S to c k N a tio n a l B a n k , O m a h a . . 69
D e s M o in e s T r u s t C o ............................ 42 L iv e S to c k N a t’ l B a n k , S io u x C i t y . . 62
D illo n L o c k W o r k s ................................. 95 L y t le C o ..........................................................
D r o v e r s N a tio n a l B a n k ...................... 38
D u b u q u e N a tio n a l B a n k ...................... 42
M
E
M a r s h a llto w n S ta te B a n k . . . . . . . . : . . 40
E d w a r d s , G u y .............
125 M a s s e y P ia n o C o ...................................•
E r n s t & E r n s t .......................................... 77 M cN a m a ra O ffice S u p p ly C o . . . . . . . . 9b
M e ch a n ic s & M e ta ls N a tio n a l B a n k . 70
M e ch a n ic s S a v in g s B a n k ........... .......... 55
F
M e rc h a n ts N a t’ l B a n k , B u r l i n g t o n .. 57
F a r m e r s A u t o I n s u r a n c e ....................... 108 M e rc h a n ts N a tio n a l, C ed a r R a p i d s .. 55
F a r m e r s B o n d & M o r t g a g e C o ...........114 M e rc h a n ts N a tio n a l B a n k , O m a h a .. 69
F a r m e r s L iv e S to c k In s u r a n c e C o ... 108 M e rc h a n ts L o a n & T r u s t C o . . : ------ 70


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Federal Reserve Bank of St. Louis

M e rc h a n ts T ra d e J o u r n a l ........................122.
M id la n d M o r t g a g e C o............................. 117
M id la n d N a tio n a l B a n k . . .................... 72
M id w e s t S ta te B a n k ............................... 44
M in n e h a h a N a tio n a l B a n k .................... 61
M is s o u r i S ta te L i f e ...................................I l l
M u s c a tin e S ta te B a n k ...................... . . 55

U
U n ited C a ttle L o a n C o.....................
115
U n ite d S ta te B a n k ...................
54
U n ite d S ta te s N a tio n a l B a n k . . . . . . . bs
U n io n & P la n t e r s B a n k & T r u s t Co. 81
U n io n T r u s t C o .............................
81
U pharn B r o s ....................................
i U4
V
V a lle y

N a tio n a l

B a n k ........................ 56
w

W a h k o n s a H o t e l ...................................... 48 ^
W a lte r s , C has. E . C o ............................ 68
W a t e r lo o B a n k & T r u s t C o ............ 50
W a t e r lo o S a v in g s B a n k ......... ............... 5b
W e b s t e r C o u n ty N a t io n a l................. 47
W e lc h , J. H ........................
°7
W e s te r n L ife I n s u r a n c e C o ............ , •.101
W h it e - P h illip s C o m p a n y ....................123
W o l f & C o m p a n y ................................... 32
W o o d s , GUy .................. •••.................... 1^5
Z
Z a ise r, W . H . S p e c ia lt y C o ............... 97

October, 1920

THE

NORTHWESTERN

BANKER

127

H O W WE COOPERATE WITH OUR CUSTOMERS
T “ ®following letter received front one of our pütrons, tile president o f a progressive
bank, is self-explanatory:

I am in receipt of your letter advising us that you have credited our account w ith $
check received from Messrs....................... I want to thank you very kindly for the manner in
which this transaction was conducted. That is what w e call real service. Y ou kept in touch
w ith the situation before the car reached Chicago until the draft was deposited to our credit.
......................... may have meant no harm in his deal, hut you r efforts stopped any possible
chance o f this hank being injured in any w ay through this deal.

On tins basis of cooperation, we invite your B /L business and place our exceptional
facilities in all departments at your service.

THE

NATIONAL

BANK

OF

THE

R E P U B L I C
OF

RESOURCES

C H IC AG O

OVER

$42,000,000

Conilinental Mortgage & Loaia Co.
Securities Building, Des Moines
Offers its services to Banks, Cattle Dealers, Feeders, Automobile,
Truck and Tractor Distributors, Manufacturers and Jobbers for the
purchase and sale of high-grade

Farm Loans-Agriculfural and Commercial Paper
Correspondence solicited with banks, corporations and individuals
who are in the market for prime short term securities or who have
such paper for sale.

Edw. C. Starrett, President

John A. Elliott, Treasurer

R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertiser».


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

THE

128

NORTHWESTERN

BANKER

October, 1920

Announcement
R ecogn izin g the need for larger financial
institutions the Com m ercial Savings Bank
has consolidated with its honored friend,
the Am erican Trust and Savings.
Continuing under the name of the C om ­
mercial Savings Bank this enlarged insti­
tution is in better position than ever to
render highly satisfactory service to its
friends.
Its ample capital, wide facilities and
thorough equipment, strengthened by its
experience in serving a grow ing list of
correspondents, enables it to offer a ser­
vice particularly adapted to the require­
ments of banks in this field.

JOH N A . E LLIO TT
President
CLAUDE E. N IC H O LS
Vice-President

CLYD E F. FRAZIER
Vice-President and Cashier
E. L. D AVIS
Assistant Cashier

Capital . . $ 200,000.00
Surplus . .
35,000.00
Resources . 4,000,000.00

D e s M oin es, Iowa

C O M M E R C IA L
SAVINGS BANK

Consolidated with and hereafter
to be known as

Des M oines, Iow a

American Trust & Savings Bank


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Federal Reserve Bank of St. Louis