Full text of The Northwestern Banker : October 1926, 31st Year, Number 470

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T H IR T Y -F IR S T Y E A R

N U M B E R 470

OCTOBER, 1 9 2 6
New Carols and Ditties for Bankers
Conventions
Special Section, Financial Advertisers
Convention
TH E P H O TO B E L O W :
Louis T. M cFadden, P ennsylvania banker
and congressm an since 1915, author of the
“M cFadden B ill,” which, together w ith the
H ull am endm ent, is designed to curb branch
banking. M r. M cFadden was for several
years presiden t of the F irst N ational Bank,
Canton, Pa., and was presiden t of the Penn­
sylvania Bankers A ssociation in 1915.


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Federal Reserve Bank of St. Louis

THE

9

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

o u n d e d in 1857— 68
years a g o ; and during
this period through
conservative, s u b s t a n t i a l
banking THE FIRST
NATIONAL has rendered
an unexcelled service to
correspondent banks in the
west.

F

S ixty-eight years afford ample te s t and
supply conclusive proof of the sta b ility
of any in stitu tio n — p a rtic u la rly th a t of
a bank.
F. H. D A V IS
President

5%
Farm Loans
REFINANCE YOUR LOANS NOW
WHILE RATES ARE CHEAP
WE ALSO MAKE CITY LOANS IN DES MOINES
DAVENPORT, CEDAR RAPIDS, IOWA CITY
CLINTON, BURLINGTON

M idland M ortgage C ompany
CEDAR R A P ID S, IO W A
D ES M OINES OFFICE
555 Seventh Street, D es M oines, Iowa
CENTRAL IOW A OFFICE
Carroll, Iow a

C. T. KOUNTZE
V ice P res, and Chairman

T h i r s t National
iBank of O m a h a

T

O c to b e r, 1926

B A N K E R

F. C. W A P L E S , President
IN G R A M B IX L E R . Vice President
C L IF F O R D DE P U Y , Vice President
R. S. S IN C L A IR . Vice President
R. J. S O E N E R , Secretary Treasurer
R U S S E LL D. C O LE , Assistant Secretary
R. H. IVIE ME I ER, Assistant Secretary
P. T. W A P L E S , Manager Western Office

HE Des Moines business of Iowa
banks is invited. These banks
are thoroughly
equipped in every
department.
Valley National Bank

SIO U X C IT Y
serves one of America’s richest farming
territories, and its commercial import­
ance in the West makes a good banking
connection in this city highly valuable.
We invite correspondence regarding
our service to banks and bankers.

AND

Valley Savings Bank
DES M OINES, IOWA

V alley Bank B uilding

E sta b lish e d 1872
Combined Capital and Surplus

S I , 1 0 0 ,0 0 0 .0 0

R. A. CRAWFORD, President
D. S. CHAM BERLAIN, Vice
P resident
C. T. COLE, JR., V ice P r e si­
dent
W. E. BARRETT. Cashier
JOHN H. G INSBERG, A sst.
Cashier
C. M. CORNWELL.
Cashier

T h e N o r th w e s te r n B a n k e r is th e o ld e s t
b a n k in g p u b lic a tio n w e st of th e M issis­
s ip p i r iv e r — a n d w a s th e firs t in
A m e ric a to jo in th e A u d it B u r e a u of
C irc u la tio n s . I t is th e official p u b lic a ­
tio n of th e S o u th D a k o ta B a n k e r s A sso ­
c ia tio n , th e Io w a F a r m M o r tg a g e B a n k ­
e rs A sso c ia tio n , a n d th e Io w a B o n d
D e a le rs A sso c ia tio n . I t m u s t be u se d
to c o v e r A m e r ic a ’s r ic h e s t a g r ic u ltu r a l
te r r ito r y .


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Federal Reserve Bank of St. Louis

CAPITAL ONE MILLION DOLLARS

SERVICE
COOPERATION
READER CONFIDENCE
TH E N O RTH W ESTERN BANKER
D ES M O IN E S

6

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IOWA

T HE

O c to b e r, 1926

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

3

B A N K E R

rirb lN g

O e tstm d m g Mem of the
N o rth w est
A /[ANY of the outstanding men of Minneapolis
dVl wKo are responsible for the growth and develop­
ment of the Northwest may be found in the following
roster of the Directors of the Minnesota Loan and
Trust Company:
E d w ard W . D eck er, C h a irm a n o f the B oard
H o ra c e Low ry, P resident, T w in City
Sew all D . A ndrew s, T re a su re r M in n e ­
R apid T ra n s it Co.

apolis D ru g C om pany

C h arles C. Bovey, V i c e P resident,

Ja m es M . M a rtin , G en eral Counsel,
T h e M innesota L o an a n d T ru st Co.

W a s h b u rn Crosby Co.

W illiam F. B rooks, T rea su re r, Back­
us-Brooks C om pany
Jo se p h C h a p m a n , P resident, T h e L. S.
D o n a ld so n Co.
F re d eric W . C liffo rd , C apitalist
A lb e rt C. C obb, Cobb, W heelw right,
H o k e 8C Benson, Lawyers

H e n ry L. M o o re, R etired
G eo rg e H . P a rtrid g e , P resident, W y ­
m an, P a rtrid g e a n d Co.

Jo h n

S. P illsb u ry , V ice
P illsbury F lour M ills Co.

P resident,

A rth u r R. R ogers, P resident, Rogers
L um ber Co.

W illa rd R. C ray, Lawyer
G eo rg e D . D ay to n , P resident, T h e

C h arles V . S m ith , V ice P resid en t an d
T ru st Officer, T h e
a n d T ru st Co.

D a y to n Co.

E d w ard W . D eck er, P resident, T h e
N o rth w estern N a tio n a l Bank
F len ry D o e rr, P resident, M inneapolis
D ru g Co.
W illiam A. D u rs t, P resident, T h e M in ­
nesota L o an a n d T ru s t Co.
F ra n k T . H effe lfm g er, P resident, F.
H . Peavey a n d Co.
H u b e r t K elly, P resident a n d T rea s­
u rer, H . Kelly C om pany
F re d e ric k E. K en asto n , C h a irm a n of
B oard, M pls. T h re s h in g M achine Co.

M innesota

L oan

H e n ry D . T h ra ll, V ice P resid en t an d
T rea su re r, T h e M innesota L oan an d
T ru st Co.

F re d C. V a n D u sen , V ice P resident,
T h e V a n D u s e n -H a rrin g to n Co.

Ja m es A. V a u g h a n , T rea su re r, W y ­
m an, P a rtrid g e a n d Co.

H a r ry

B.

W a ite ,

P resident,

H.

B.

W aite L um ber Co.

T h e o d o re W o ld , V ice P resident, T h e
N orthw estern N a tio n a l Bank

The wide diversification of activity reflected by this
group of business men assures the balanced judgment
so necessary in the administration of the affairs of a
large financial institution.
Capital an d Surplus $2,000,000.00
Resources Over $20,000,000.00

The Minnesota ^ L oan s J rust Co
4 0 5 M arquette (([Jw ) M in n ea p o lis
R E P R E S E N T A T IV E S :

ST. P A U L — 360 R o b e rt S t., F ifth F lo o r.

R O C H E S T E R — 1 9 ^ S eco n d St. S. W .

1&S3

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Federal Reserve Bank of St. Louis

D U L U T H — 510 A lw o rth B uilding

TH E

4

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

B A N K E R

O c to b e r, 1926

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N O RTH W ESTERN BANKER
DES M O I N E S
The Oldest Financial Journal W est of the M ississippi
M em b er A u d it B u re a u of C ircu latio n s

Id

T h ir t y -f ir s t Y e a r

C O N T E N T S FO R O CTO BER, 1926

N um ber

Page

Page
Across from the P u b lish er............by Clifford D ePuy

8

F rontispiece................................................H. T. G raves

10

‘ ‘ In This Issue ’ ’.................................................................
Carols fo r B an k ers.............................By Roscoe M acy

11
12

The N ebraska G u aran ty L aw .......................................

13

Personal P arag ra p h s ..........................................

32

Bonds and In v e stm e n ts....................... -..............
Insurance Section...........................

41
63

B ankers and T heir W a n ts.................... ........-.....
South D ak o ta N ew s..............................................

70
71

470

News and Views.................................................................
Special F. A. A. Section.............................

18
20

“ The A d v ertisin g C lin ic” ..............................................

22

Convention Sidelights ......................
“ A D e le g a te ’s D ia ry ” ...............................

23
25

N eb rask a N ew s....... ....r.._......................................
M innesota N ew s.................................

73
77

N o rth D akota N ew s..............................................
Iow a News ..............................................

81
83

The contents of th is m agazine are fu lly protected by copyright

DE PUY PUBLICATIONS AND THEIR TERRITORY
N o rth w estern B anker

T r a n s -M is s is s ip p i B a n k e r

DES M O IN ES

K A N S A S CITY

M id -C o n t in e n t B a n k e r

I n s u r a n c e M ag a z in e

S A IN T LOU IS

K A N S A S CITY

S o uth w estern B an k ers J ournal

U n d e r w r it e r s R e v iew

FORT W O RTH

DES M O IN ES

L if e I n s u r a n c e S e l l in g

I ow a B a n k D irectory

ST. LOUIS

DES M O IN ES

TH E NO RTH W ESTERN BAN KER, P

u blish ed

by

D eP uy

P u bl ish in g

Co., I n c ., C a p i t a l S t o c k , $100,000.00

555 S eventh S tre e t, D es M oines.
C liffo rd D e P u y , P u b lish er; G. A . S n id e r , A ssociate P u b lish er; R . W . M o o r h ea d , Editor.
R ex V . L e n t z , A d v e rtisin g D irector.

H . H . H a y n e s , A ssociate M anager.
M iv n fa po l is O f f i c e ! Frank S. Lew is, 840 Lumber E xchange Bldg., Phone M ain 3865. C h ic a g o O f f i c e : Wm. H . Maas. 1221 F irst
N a tio n a l B an k Bldg., P h o n e C en tra l 3591. S t . L o u is O f f i c e : D onald H . C lark, 408 Olive St., P h o n e M ain 1342. K a n s a s C it y O f f i c e :
Glen D. M athew s, 405 R idge B ldg., P h o n e H a rris o n 5857.
F ort W o r t h , T e x a s , O f f i c e : H. Lawson Hetherw ick, 409 F. & M. Bank Bldg.
S a n F r a n c isc o O f f i c e : George W ig ht, 600 B a l d w i n Bldg.
Entered as second class m atter at the Des Moines postoffice

■la


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Federal Reserve Bank of St. Louis

Subscription Ratnc, * 3 . 0 0

Official P u b lication of
THE SO UTH DAKOTA B A N K E R S A SSO CIATION
THE IOW A FARM MORTGAGE A SSO CIATION
THE IOW A BOND D E A L E R S ASSO CIATION

per year; 5 0 cents per copy

______________________________ __________ __ ______________________

=r=

O c to b e r, 1026

TH E

The Investors
“Who invests your money fo r you?”
asked the bond salesm an.
“ The grocer, the garage man, the doc­
to r and the various d epartm ent stores,”
growled the m arried man.— Cincinnati
Enquirer.

N O R T II W E S T E R N

B A N K E R

“ Positively N o!”

Help Wanted
Boss—I f th is occurs again, I shall be
com pelled to get ano th er store boy.
Store Boy—I wish you would, sir.
T here’s quite enough w ork fo r two of us.

Maybe He Knows
“I f you had the pow er to talk w ith
anim als, w h at’s the first thin g you’d ask
th em ?”
“I ’d say, ‘Skunk, w h at’s the big idea ?’ ”
Styles in the Hereafter
A revival was rag in g in a V irginia
colored church. The fru its had been
considerable. One obdurate soul, how­
ever, resisted the efforts of the elder.
Called to account fo r his reluctance, he
re p lie d :
“Yo’ see how it is E lder. I ’se got a
problem. I don’t see how I ’se gwine git
mah sh irt on ovah m ah wings when I
gits to Glory.”
“D at ain ’t yo’ problem ,” reto rte d the
exhorter prom ptly. “Yo’ problem is how
is yo’ gwine get yo’ h a t on ovah yo’
horns.”
“ Gosh, you’re dumb. W hy don’t you
get an encyclopedia?”
“ The pedals hu rt my feet.”— W esleyan
W asp.

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Federal Reserve Bank of St. Louis

Considerate of Her Children
A m an who was sentenced to be hanged
was visited by his wife, and the following
conversation took p la c e :
“My dear, would you like the children
to see you executed ?”
H e— “No.”
She— “T h a t’s ju st like you, you never
w ant them to have any enjoym ent.”—
Eagle Quills.
Extravagance
F irs t L ad y : “I h ear M r. Jones, the
m illionaire, le ft all he had to the O r­
p h an s’ Home.”
Second D itto : “Y es? How much was
it ?”
F irs t L ady: “F ive girls and seven
boys.”

Two Keys to Failure
Two b attered old w recks w ere sittin g
on a bench in the common, when one re ­
m arked : “I ’m a m an who never took ad ­
vice from anybody.”
“ Shake, b ro th er,” said the other. “I ’m
a m an who followed everybody’s advice.”
— Merchants Record.
Another “Conference”
The doctor was w orried over the con­
dition of his p atien t.
“I th in k I shall have to call in some
o th er physicians fo r consultation,” he
suggested.
“ T h at’s rig h t ; go ahead,” consented the
victim feebly. “ Get as m any accomplices
as you like.”

5

“ Stop asking questions nobody can an ­
sw er,” ordered Mr. Jones. “Now, n o t an ­
other wTord !”
“J u s t one more, P op,” pleaded Tommy.
“ Say, if I was tw ins, which one would I
be?”
“F ix b a y o n e ts!” ro ared the hard-boiled
sergeant on the drill-grounds.
“Please, sir,” quavered the very new
recru it, “th e re’s nothing the m a tte r wuth
mine.”
“Oo-hoo! I saw you kiss S is !” cried
one of those ubiquitous small brothers,
suddenly m aterializin g from nowhere a t
all.
“E r —ah— here’s a q u arte r, my little
m an,” offered th e em barrassed suitor.
“A nd here’s fifteen cents change,” coun­
tered the little man. “ One price to all—
th a t’s the w ay I do business.”
An u p lift w orker, v isitin g a prison, was
much im pressed by the melancholy a tti­
tude of one m an she found.
“My poor fellow ,” she sym pathized,
how long are you in fo r ?”
“Depends on politics, lady,” replied the
m elancholy one. “I ’m the w arden.”
Footing vs. Facing
H u sb a n d : “D on’t b rin g me any b ills ;
I can’t face them .”
H is W ife : “You needn’t, darling, I
only w ant you to foot them.”—Exchange.

Safety First
“H ello,” called a fem inine voice over
the telephone, “is th is the H um ane So­
ciety ?”
“Yes,” replied the official in charge.
“W ell—th e re’s a book agent sittin g out
here in a tree teasing my dog.”
Self-Serve!
“D idn’t I send you to th e workhouse
fo r chicken stealin g ?” inquired a judge
of an individual who had been caught
w ith several fowls he could n o t account
for.
“Y assuh,” adm itted the prisoner. “F o ’
n inety days.”
“ Then how did you g et out so soon?
T hat was only th ree days ago.”
“W ell, suh, dey p u t me in a h a ’nted cell
wiv a ghost, so Ah je s’ nacherly sus­
pended m ah sentence.”
Not Given Much Credit
A Texas b anker tells th e sto ry of a
negro custom er, well known to the b an k ’s
staff, who one day entered the bank, and,
going directly up to the cashier, said
buoyantly and w ithout any ta lk w asted
on p relim in arie s: “Mr. F ra n k , I w ants to
borrow $5.”
“W ell, w hat fo r Jo e ? ” asked th e cash­
ier.
“I needs to pay my lodge dues,” replied
Joe, w ith sanguine expectation.
“ Oh, b u t I can’t do th a t— I p aid them
the la st tim e.”
“W ell, I declare, M r. F ra n k ,” exclaimed
th e su rp rised negro, “as much confidence
as I has in you and you cain’t lend me
$5 ?”

6

TH E

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

B A N K El

October, 1926

INDEX TO ADVERTISERS

A m erican
C o m m ercial
& S a v in g 's
Bank
. . . » ....................................................... 91
A m e r i c a n B o n d & M o r t g a g e Co. . . . 32
A m erican
C o m m ercial
& Sav in g s
B a n k ................................................................... 94

B
B a k e r - K e l 1o g g & Co. I n c ........................
B a n k e r s T r u s t Co., D e s M o i n e s . . . . .
B a n k e r s T r u s t Co., N e w Y o r k .............
B a r t l e t t & G o r d o n , I n c ..............................
B e i l T e l e p h o n e S e c u r i t i e s C o r p .........
B o l d t , A. J . & C o .............................................
B r o k a w & C o . , ..................................................
B r o w n , C r u m m e r C o .....................................

5">
85
35
51
43
61
48
59

C
C a n a d i a n P a c i f i c R a i l w a y .......................
C e d a r R a p i d s N a t i o n a l B a n k ..................
C e n t r a l S t a t e B a n k .....................................
C e n t r a l T r u s t Co. o f I l l i n o i s ..................
C h a p m a n , P . W . & C o .....................
C h a s e N a t i o n a l B a n k ...................................
C h i c a g o T r u s t C o .............................................
C i t y N a t i o n a l B a n k , C l i n t o n ..................
C l a s s i f i e d A d s ..................................................
C o n s o l i d a t e d N a t . B a n k ..............................
C o n tin e n tal & C o m m ercial N a tio n al
B a n k s .................................................................

98
90
60
76
52
72
58
89
70
25
30

Page
F i r s t N a t i o n a l B a n k , O m a h a ....................2
F i r s t N a t i o n a l B a n k , S i o u x C i t y ............ 2
F i r s t N a t i o n a l B a n k , W a t e r l o o ............92
59
F i r s t N a t i o n a l C o .............................
F i r s t W is c o n s in N at.
B a n k ................. 26
F i s h e r C o ............................................................... 38
F o r m a n , G e o. M. C o ........................................ 40
F o r e m a n N a t . B a n k ...................................... 33
F o s h a y , W . B. C o ............................................. 93
F o s k e t t , H . 1....................................................... 53

I)
96
69
99
56
54
82

E
E p p le y H o te ls C o ...

98

IV
N a t i o n a l B a n k o f C o m m e r c e ...................28
N a t i o n a l B a n k o f t h e R e p u b l i c .............. 40
N a t i o n a l C i t y C o ................................................. 44
N a t i o n a l L i f e A s s o c i a t i o n ............................. 67
N a t i o n a l P a r k B a n k ......................................... 79
N o r t h e r n B a n k N o t e C o ............................. 76
N o r t h e r n T r u s t C o .......................................... 78
N o r t h w e s t e r n N a t i o n a l L i f e I n s . Co. 64

G
G en eral M otors A ccep tan ce C o r p ....
G r e e n e b a u m B r o s ......................... .................

61
40

o
O m a h a N a t i o n a l B a n k ................................

l(

1
I l l i n o i s - M e r c h a n t s B a n k ............................. ICO
I n d u s t r i a l A c c e p t a n c e C o r p .................... 66
I n t e r n a t i o n a l L i f e I n s u r a n c e C o .......... 62
I o w a L o a n & T r u s t C o ................................ 87
I o w a N a t . B a n k , D a v e n p o r t .................... 96
I o w a N a t i o n a l B a n k , D e s M o i n e s . . . . 97
I o w a N a t . F i r e I n s u r a n c e C o ................. 69
I o w a L i t h o g r a p h i n g ..................................... 84

J o h n H a n co c k M u tu al Life I n s u r ­
a n c e C o ........................................................

K
K o e p p e , L a n g s t o n , L o p e r & C o ............

56

I,
L a n e , R o l o s o n & C o ...................................
L i v e s t o c k N a t . B a n k , O m a h a .................. 74
L i v e s t o c k N a t . B a n k , S i o u x C i t y . . . . 72

Ii
R a n d M c N a l l y C o .............................................
7
R o l l o f H o n o r B a n k s ................................. 98
R o y a l U n i o n L i f e I n s . C o .29 a n d 65

S
S e a b o a r d N a t . B a n k ................................. .. .
S e c u r i t y S t a t e B a n k ......................................
S o u t h e r n S u r e t y C o ........................................
S o u t h F l o r i d a M o r t g a g e C o ....................
68
S t a n l e y , H e n d e r s o n C o ................................
S t a t e B a n k o f C h i c a g o .................................
S t a t e C e n t r a l S a v i n g s B a n k ..................
S t e r n , L a w r e n c e & C o ...................................
S to c k Y a rd s N a tio n a l B a n k , C h icag o
54

F e d e r a l S u r e t y C o . ...................................
62
F i d e l i t y B o n d & M o r t g a g e C o ............... 57
F i d e l i t y T r u s t Co., N e w Y o r k . 1 .......... 39
F i r s t I l l i n o i s C o ................................................ 31
F i r s t Io w a S ta te T ru s t & Sav in g s
B a n k .................................................................... 88
F i r s t N a t i o n a l B a n k , C h i c a g o .................32
F i r s t N a t i o n a l B a n k , D a v e n p o r t .......... 91


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Federal Reserve Bank of St. Louis

T

U

M c C l i n t o c k , O. B. C o ........................................
M c D o n a l d , H e r b e r t ........................................
M a s o n C i t y B r i c k & T i l e C o ....................
M e r c h a n t s N a t . B a n k .................................
M i d l a n d B a n k , L t d ..........................................
M i d l a n d M o r t g a g e C o ...................................
M i d l a n d N a t i o n a l B a n k ..............................
M i n n e s o t a L o a n & T r u s t C o . ..................
M isso u ri S ta te L ife I n s u r a n c e C o ...

“ A C A S H I E R ’S C H E C K ” for $3.00 is all th a t is required to secure the
monthly visits of the Northwestern Banker for an entire year. Each issue
contains from 108 to 200 pages of mighty interesting m atter pertaining to
banks and banking interests in the territory covere dby the magazine.
"O UR CORRESPONDENTS.”
Every bank in the nortlrwest is in­
vited to a place on this list. Send us items of local interest, tell us
about your bank and its growth, prospects, etc., also, apy other
financial new's of interest to bankers in your section. We are
always glad to head from our friends.
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This department, is for your special
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not fail to avail yourself , of its privileges.
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Our columns are a, clearing house
tor all our readers. Express your view on any topic of interest to

39
95
68
80
80
27
93
53
74

T h o m p s o n , R o s s & C o ................................... 47
T r u e , W e b b e r C o ............................................. 50

M
F

75

P
55
P e a r s o n H o t e l ................................................ 92
P e o p l e s T r u s t & S a v i n g s B a n k ............. 93
P h i l a d e l p h i a - G i r a r d N a t i o n a l B a n k . 34
P i o n e e r N a t i o n a l B a n k ............................ 94
P o l k , H a r r y & C o ............................................. 55
P r i e s t e r , Q u a i l & C u n d y ............................ 60

H a n n a , AV. D .....................................
H a n o v e r N a t i o n a l B a n k ............................ 72
H o a g l a n d , A l l u m & C o ................................ 58

J

D e s M o i n e s D u p l i c a t i n g C o ....................
D e s M o i n e s L i f e & A n n u i t y C o ............
D e s M o i n e s N a t i o n a l B a n k ....................
D e W o l f & Co., I n c .........................44 a n d
D o h e r t y , H e n r y L. C o ...................................
D r o v e r s N a t i o n a l B a n k ............................

Page
M itch ell, H u tc h in s &
C o ............... 49
M o r r i s o n H o t e l ................................................ 76

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67

U n i o n T r u s t C o ..................................................

19

AB a n k .................................

2

V alley N a tio n al

YV
W e s s l i n g S e r v i c e s .........................................
W h i t e - P h i l l i p s C o ............................................
W h e r e t o B u y ..................................................
AATo l l e n b e r g e r & C o ........................................

37
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the banking fraternity and sumbit same for
publication. You do not have
to agreewith us, or with anyone else. Welearn things by an interchange
of ideas, and people with whom we disagree often prove valuable teachers.
We shall be glad to hear from you.
‘NO P R O T E S T ” has ever been offered to the statement th a t the
field coverd by the Northwestern Banker is the money-producing
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and dotted with thousands of prosperous banks, all doing a good
business, and the majority of them are readers of “ The North­
western.”
" S U R P L U S A N D U N D I V I D E D P R O F I T S ” increase very rap­
idly with those banks whose. advertisements appear regularly in
the columns of this magazine.
Full information as to rates
and our special service will be promptly , furnished on appli, f cation. Your business solicited and,appreciated. The “ Bankhas been twenty-nine years in its present field.

O c to b e r, 192b

T H E

N O R T H W E Ö T ERN

B A N K E R

7

Have you the new edition—just out?

C om pletely revised and corrected
for your safety
The latest edi tion of the RAND M9N ALLY
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in the order in w hich subscriptions are
received.
Every September and March the Blue
Book is issued w ith an average of two
hundred thousand corrections necessitated
by normal changes in the banking business.
The new edition is completely up to date
w ith some i 9i,ooo revisions—-new banks,
mergers, jiew officers, grow th of deposits,

loans, etc.—significant facts and figures to
which every banker must have ready access.
Bankers everywhere consult the latest
edition as an authority in all banking trans­
actions. They have found through years
of experience th at its information is com­
prehensive, complete and free from error.
This standard volume is but one of the
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Los Angeles

THE

NORTHWESTERN

BANKER

October, 1926

cross the Desk from the Publisher
T A TTEN D ED

the F inancial A dvertisers Association
C onvention in D etroit last
week. Am ong the m any excel­
lent speeches w hich I h eard
was one by C harles K ettering,
vice presid ent of the G eneral
M otors C orporation, and he
spoke on “ The B ank and the
P u b lic .” D uring the course
of his rem arks he placed the
bank in the same category as
a dam p church and a morgue.
He also said th a t 95 per cent
of the people in the U nited
S tates do not know w hat a bank is for. As I sat
th ere listening to this vice president of a great
corporation, I w ondered if w hat he said was really
true. C ertainly it m ust be his im pression of a
bank or he would not have d ared to m ake such
statem ents in public. If, in Mr. K e tte rin g ’s mind,
the bank is sim ilar to a dam p church and a
m orgue, th en there is som ething w rong w ith the
w ay banks are conducted and w ith the w ay they
are advertised.
If, as he believes, there are 95 per cent of the
people who do not know w hat a bank is used for,
or the purpose for which it exists, th en every
ban k er and every financial advertising m an con­
nected w ith a bank, has a trem endous task before
him to help educate the public to the real benefits
and advantages and services w hich every bank
does and can render.
Mr. K e tterin g fu rth e r brought out the idea
th a t there was no p a rtic u la r v irtu e in m erely sav­
ing m oney fo r the sake of accum ulating a large
surplus. He said th a t “ saving m oney d oesn’t
m ake a country rich, b u t spending m oney for
things th ey do w ant does.” I do not tak e any
exception to this statem ent b u t certainly if the
banks are n o t stim ulating people to save, there
will be no surplus from w hich they can m ake
purchases, w hether it was fo r autom obiles, or
groceries.
The point I w ant to make, is, th a t th ere is still
a big task before the bankers of this country to


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Federal Reserve Bank of St. Louis

educate the people of th eir
com m unities concerning the
real reason why th eir in stitu ­
tions exist. Those of us who
are close to the banking busi­
ness know of the m any serv­
ices and departm ents which
every bank has fo r the benefit
of its custom ers. B ut if the
custom ers do not realize the
benefits w hich they can derive
from these departm ents, th en
bankers and financial ad v er­
tising men have failed in
th eir duty and have not as yet
reached the goal w hich they have set for them ­
selves and fo r the F inancial A dvertisers Asso­
ciation.

S top B ranch
B anking N o w
Ü V E R Y b anker who is a firm believer in the
independent banking system of the U nited
States, should use his influence to see th a t the
H ull A m endm ents are passed a t the coming ses­
sion of Congress. If you believe in the p erp etu a­
tion of individual initiative in the banking busi­
ness, then use your influence to see th a t branch
banking is stopped now.
The H ull A m endm ent says: “ A t the tim e of
the approval of this a c t,” no fu rth e r branch banks
shall be established. This does not ham per or
in terfe re w ith any branch banks w hich are now
established, b u t it does prevent the fu rth e r spread
of branch banking in this country.
The M cFadden Bill at the last session of Con­
gress, passed the house on F eb ru a ry 4, 1926. The
senate com m ittee declined to accept the H ull
A m endm ent. In a conference comm ittee, ad d i­
tional am endm ents were proposed as a substitu te
fo r the H ull A m endm ent, b u t these failed of adop­
tion before Congress ad jo u rn ed and consequently
no final action was tak en on th e M cFadden Bill.
If you believe in the independent operation of
your own bank and every other bank in the

October, 1926

THE

NORTHWESTERN

U nited States, let your congressm en and senators
know your wishes in this m atter before they re ­
tu rn to W ashington th is December.

The M en tal
A ttitu d e
H A TE V ER success you m ay have attain ed
in the banking business is due to two th in g s :
first, because you w orked h a rd and achieved re ­
sults, and second, because you h ad the rig h t
mental- attitu d e. In other words, you had the will
to succeed.
The Silent P a rtn e r says: “ If you th in k you
c a n ’t, you w o n ’t. If you expect to lose, y o u ’re
licked. If you w ant to rise or w in a prize, forget
the plan of th in k in g you c a n ’t and rem em ber to
th in k , ‘I w ill!’ ”
I t fu rth e r says t h a t : ‘ ‘ Success is more a m ental
a ttitu d e th a n a m aterial stru g g le , 7’
M any men today have the w rong m ental a tti­
tude tow ards th eir own business and the business
of th e ir custom ers. The m aterial struggle which
all of us m ust m ake if we are to exist on this
p lan et is m ade easier in ju st the degree th a t we
have the rig h t m ental a ttitu d e tow ards our w ork
and tow ards our com m unity.
I t will not h u rt you to say, “ I w ill” a few more
tim es each day.

W

BANKER

the question of w hat the scholar is able to acquire
as the fru it of know ledge, b u t also to w h at extent
is his own n atu re enriched and deepened by such
know ledge? The la tte r I would characterize as
the ‘flow er’ of know ledge.”
A ny b anker who is a re al stu d en t of economic
and business conditions is constantly im proving
the faculties of his own m ind in addition to se­
curing valuable inform ation w hich w ill benefit
him in his business. This constant m ind stim ula­
tion w hich Mr. H ibben has called “ the flower of
know ledge” is a m ost valuable by-product, b u t to
the p ractical m ind of the every-day b anker, the
facts are figures ascertained w hich will help him
in his business because he possesses an inquiring
m ind w ill pay him im m ediate dividends by im­
proving banking m ethods, increasing efficiency
and reducing operating costs.

R epealing the
G uaran ty L a w
D akota has trie d the bank g u aran ty law
SOUTH
and decided th a t it was a failure. A t the last

legislature the bank g u aran ty act was repealed.
This law has now been re fe rre d to the people by
petition and will be voted upon in the fall election.
The South D akota B a n k e rs’ Association is m ak­
ing a special cam paign to see th a t the action of
the legislature is endorsed. A t the recen t state
The Inquiring
convention the follow ing resolution was passed.
M ind
“ Resolved, T h at we endorse the action of the
H E inquiring m ind is one which asks ques­
legislature in repealing the bank g u aran ty act
tions, goes a fte r the facts and considers a
in view of the fa ct th a t the income from assess­
thorough research on any subject of v ital neces­
m ents have ceased to be of any real benefit,
sity if a pro p er decision is to be m ade reg ard in g
either to depositors or the m em ber-banks. This
the subject a t hand. The inquiring m ind in the
law has been re ferred to the people by petition
b an k ing business is a m ind w hich analyzes costs,
and will be voted upon as a separate item in the
corrects the errors in m odern banking m ethods,
fall election.
increases the b a n k ’s efficiency, and does not ac­
“ W e urge the m em bers of this association to
cept a banking practice as correct sim ply because
give
not only th eir support to the com m ittee
it has been in operation fo r a h u n d red years or
which has the m a tte r in charge, b u t also tb give
more.
th eir individual effort to see th a t the action of
Dr. Jo h n G rier Hibben, president of P rinceton
the legislature is sustained—and to vote ‘y e s ’ on
U niversity, in speaking before the H a rv a rd chap­
te r of P hi B eta K appa on the value of research, this special b a llo t.”
D.
H. L ightner, p ast president of the associa­
said : “ B ut th ere is also a residual elem ent of
tion,
in
his annual address said: “ L et us fo rg et
significant value, a possible by-product of all
politics
and to g eth er join in a dem and th a t the
scholarly research. The scholar does not possess
state
of
South D akota get out of business and re­
i t ; it ra th e r possesses him. I re fer to the effect
store
confidence.
The first step in this program
produced upon the inquiring m ind itself by daily
should
be
to
get
rid
of the g u aran ty la w .”
and hourly contact w ith tru th . I t is not only

T


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Federal Reserve Bank of St. Louis

9

H. T. GRAVES
President, North Dakota Bankers Association.

II. T. Graves, who was this year elected president of
the N orth D akota B ankers Association, is president
of the Jam es R iver N ational B ank of Jam estow n.
Mr. Graves has been active in S tate Association
w ork fo r several years, and was last year vice presi­
dent and chairm an of the executive council.


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Federal Reserve Bank of St. Louis

CASH PRIZES FOR OLD
PHOTOS !
In the Septem ber issue T he N o r t h ­
B a n k e r plans to present a
group of articles under the general sub­
ject of “ The Pioneer Days of B anking.’’
This will include a num ber of very in te r­
esting letters on early banking experi­
ences by the veteran bankers of the middle
west.
T h e N o r t h w e s t e r n B a n k e r is anx­
ious to procure fo r publication a number
of old-time photographs of bankers, banks,
groups of bankers, or sim ilar photos fo r
illustrative purposes. Hence, this m aga­
zine will give a cash prize of $10 fo r the
best “pioneer” photo subm itted by any
one of its readers. In addition, for every
photo submitted and published this m aga­
zine will pay one dollar.
w estern

I f you have an old-time photo p erta in ­
ing to any phase of banking, send it in.
You m ay win the ten-dollar prize and
it will add greatly to the historical value
of this issue. Send in your photographs,
to be received in this office not later than
October 15th.

TH E “NEBRASKA PLAN”
SERIES
No series of articles published in recent
years by T h e N o r t h w e s t e r n B a n k e r has
aroused more interest and comment among
its m any readers than has the series on
the Nebraska G uaranty Law, the second
o f which is to be found in this issue.
Bankers throughout the middle west have
w ritten in asking fo r extra copies, re­
prints, and the editor of one farm jo u r­
nal w rites th at in his opinion the series
is “the most enlightening of any article
ever published on th at subject.”
Bankers in South Dakota, where their
state guaranty law conies up fo r repeal
in November, have evinced a keen interest
in the series. L. S. Evans, cashier of the
Bank of W inner, says, “ In my opinion the
article on the N ebraska G uaranty Law
in your Septem ber issue is w orth the price
o f the entire year’s subscription.”

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Federal Reserve Bank of St. Louis

IN
THIS
ISSUE
South D akota, of course, has had sta r­
tling experiences with a g u aran ty law.
As this goes to press, T h e N o r t h w e s t ­
e r n B a n k e r is in receipt of a bulletin
from the educational committee of the
state bankers association, calling attention
to these facts:
“ One startlin g feature about the South
Dakota bank g uaranty law, as pointed
out by those who have been studying the
situation, is the fact th at every year it
remains on the statute books the state
goes three years fu rth e r behind in any
effort to clear up the obligations incurred.
“The loss created by failure to meet
interest charges alone am ounts to more
than $2,000 every day. The total income
of the g u aran ty fund does not come within
one-fourth of meeting the interest on the
estim ated deficit.
“ On Ja n u ary 1, 1926, there was an ex­
cess of $43,000,000 in certificates of in ­
debtedness outstanding. This means th at
the g u aran ty fund commission has isssued
certificates to depositors who were con­
nected with closed banks totaling $43,000,000 more than there was money in the
guaran ty fund. I f the recovery in as­
sets of closed banks is figured at 50 p er
cent—and th at is conceded to be giving
liquidation a more than fa ir figure—it
would mean th at h alf could be recovered
which would reduce the excess to $21,500,000.
“B ut the income from all sources to the
g uaran ty fund totals only $250,000 a year.
The $21,500,000 excess hears interest at
the rate o f 5 p e r cent which am ounts to
more than $1,000,000, so it is readily seen
th at the total income o f the fund does not
begin to meet the interest, let alone en­
tirely any reduction of the principal of
the excess.

“ The condition which faces the people
of South Dakota, therefore, in regard to
the g u aranty fund sim ply is this: each
year the excess is growing larger and
larg er w ith no means under present con­
ditions to cut it down. In the interest
feature alone, the guaranty fund is going
into the hole at the rate of $62,500 per
month, o r about $2,000 p er day.
“ Considering those facts, one comes
quickly to the conclusion th at the g u ar­
anty hank fund is so hopelessly in a r ­
rears th at it never will be able to pay out
unless some taxing agency is employed.
“ Those who ask that the g uaranty fund
law be retained say: ‘Oh, let it rem ain;
everything will work out all right in five
years or so.’ B ut the fact remains th at
the system cannot work out or p ay out
unless a tax of some kind is provided.
The question then is, who is going to pay
the ta x ? The only answer is, the citizens
of South Dakota.
“Because of these conditions, advocates
of a safe banking system in South D a­
kota are urging citizens to vote ‘yes’
this fall on the question of upholding the
legislature which during its last session
repealed the bank g u aran ty law.”

A SERVICE TO ALL
SUBSCRIBERS
Among the other services T h e N o r t h ­
B a n k e r renders its m any sub­
scribers is th at special departm ent in each
issue entitled “ F o r Bankers and Their
W ants.” D on’t forget th at this service is
without charge to every one of this mag­
azine’s subscribers, and th at scores of
bankers each year find new positions and
are able to m arket equipment th at they
have fo r sale through the medium of this
departm ent.
Ju s t last month the following testim o­
nial of appreciation came in from Joe
Mentges, cashier, F irs t State of A rling­
ton, Iowa, who w rites :
“ I w ant to assure you I appreciate
your calling my attention to another serv­
ice T h e N o r t h w e s t e r n B a n k e r is giving
us w ithout charge, and also w ant to say we
could not keep ‘house’ without it.”
w estern

THE

12

NORTHWESTERN

October, 1926

BANKER

N ew Carols and Ditties for Bankers1
Conventions
O N VEN TIO N S and group m eetings
of bankers in this section would
often be th reaten ed w ith failu re
were it not fo r the inspiring presence of
th at sorrel-topped Irishm an who can al­
ways be counted upon to lead the songfest. I understan d he sings fo r some
Chicago bond house, and those bankers
who delude themselves w ith the idea th a t
his services as convention song-director
are fu rnished gratis, m ay some day wake
up to find th a t he has sung them into buy­
ing an im posingly large block of bonds
p u t out by his house.

C

There is alw ays one serious defect in
evidence in these song program s, and
th a t is the sub ject-m atter of the songs
p rin te d in the folders th a t are passed
around. W hy should we always be asked
to “p u t on our Old G ray B onnett,” fo r in­
stance, when everybody knows th a t if
one of us should be so rash as to comply
w ith the request, even in fun, there would
probably be a run on his bank next d ay?
The news th a t Old B lack Jo e is coming
never seems to th rill us as it m ight, since
he does not owe our bank anything, nor
is it likely th a t he is coming to open an
account w ith us. T hat inform ation im ­
p arte d by the Saucy L ittle B ird on
N ellie’s H a t is interesting, to be sure, but
it would m ean a lot more to us if we
were acquainted w ith Nellie, and I have

By Roscoe Macy
never found one of our bankers who knew
her. P ro b ab ly she keeps h er account
w ith some bank over in N ebraska, where
deposits are guaranteed.
W hat we need is a group of rea l b an k ­
ing songs and anthem s— som ething to
lend us interest in the words we sing, and
give added zest to our chanting. I f these
songs th at are always p rin ted in our p ro ­
gram s dealt w ith m atters of every-day
in te rest to bankers, our leader m ight have
an easier time getting us warmed up to
our w arbling. F o r instance, we m ight
open our program s w ith “The D irge of
the Monthly Paym ent,” singing it to the
tune of Old Black Joe, so th a t the old
boy won’t feel le ft out alto g eth er:
T H E D IRGE OF T H E M ONTHLY
PA Y M EN T
Gone are the days, when the old home place
was clear,
Gone is th e cash, th a t was in the bank last
year;
Gone is the rig, th a t I used to hitch up to ;
And I see th a t monthly notice coming, ‘ ‘ P a y ­
ment d u e! ’ ’
C HO RUS:
I ’m com ing! I ’m com ing! Though I have
to sell a shoat.
M ust meet th a t paym ent on my car, or I ’m
a goat.

A nd then it is too bad about ole
M assa, who, we are credibly inform ed,

( t u n e ) "THE OLD OAKEN

is now in the cold, cold ground. Some­
tim es I suspect th a t we don’t tak e this as
h ard as we should. Of course, it is tru e
th a t M assa’s p la n tatio n was m ortgaged
up to the hilt, and he le ft a lot of uncol­
lectible notes in the banks, b u t he was a
good old soul, a t th a t, and when we sing
about him, we should manage somehow
to get a little more gusto in our warble.
Possibly it w ill be necessary to change
the words a bit, in which case we m ight
su b stitu te “ The Lay of the L ast D ollar,”
which is sung to the same tune.
T H E LAY OF T H E LAST DOLLAR
R oun’ de orchard am a -rin g in ’
De shovel’s m ournful clang.
All de banks dey am a-b u stin ’
Seems lak dey a in ’t worth a dang.
“ G roun’s de sa fe st,” says de missus,
‘ ‘ Zaminers doan come roun ’. ’ ’
So Ah takes mah pick a n ’ shovel;
Hides it in de c o i’, co l’ g ro u n ’.
C HO RUS:
Down in de orchard,
’N eath d at grassy rnoun’,
Dah mah dough sh e’s layin ’ buried,
Buried in de co l’, co l’ g ro u n ’.

F o r th a t old stand-by, “D rink to Me
Only W ith Thine E yes,” carry in g an ad ­
m onition which is superflous today, even
a t bankers’ conventions, we could su b sti­
tu te these words w ith the same a ir:
TO T H E S P L IT T E R OF ACCOUNTS
B ank with us only, split not thy balance,
And w e’ll take care of thee.

BUCKET

*

d r Y u THE DOG-DLASTtD CREAM-CHECK/1
¿ T f DAD'CATTED CPEAM -CHECK/
the - w mg- busted c r e a m - c h e c k

"


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“ HAT PESTEßS US GENTSWE GRAB UP A HANDFUL !
LOOKS LIKE A FORTUNE
-A N D TOTALS' SIX
[DOLLARS' AND
THIRTY NINE CENTS:

October, ,1926

THE

W e’ll draw up thy leases, pay up thy tax
receipts;
We never charge no fee.
And if thou needest m on’, ju st give us thy
note,
Two sureties only required,
And if we find thy collateral pleaseth, w e’ll
finance thee— till w e ’re tired.

A nd there is th a t other hoary old relic,
‘The Old Oaken B ucket,” which means
p ractically nothing to the m odern banker.
W hy not su b stitu te these w ords:
T H E OLD CREAM CHECK
Oh, d o n ’t you remember the days th a t are
bygone,
When Shorthorns and H erefords were
roam ing the land?
The Angus, the Galloway, deep-chested Durhams
Were milked by the calfies, instead of by
hand?
B ut now ’tis the Ayrshire, the Guernsey,
the Jersey,
Or black-m ottled H olsteins th a t g et all
the hay.
Mechanical milkers, and pow ’r separators
Turn it all into cream checks fo r bankers
to pay.

NORTHWESTERN

13

BANKER

Oh, the dog-blasted cream check! The dadrotted cream check!
The ding-busted cream check th a t pesters
us gents.
We grab up a h andful; it looks like a fortune
And totals six dollars and thirty-nine
cen ts!
“ May I cash a cream check?’’ “ Can you
cash this cream check?”
I t rings in our eardrums from morning
till night.
He may be a stranger, “ D o n ’t know him
from Adam,
B ut if h e ’s got a cream check, he m ust be
all right. ’ ’
And then in the evening, the boys try to
list ’em,
They add, and they add, b u t they c a n ’t get
’em straight.
W hynell c a n ’t we stuff the whole bunch in a
mail bag,
And clear the gol-durned things accord­
ing to weight?
CHORUS:
Oh, ding the ole cream cheek. Yes, dang the
ole cream check!
Gosh-blame the ole cream check th a t clut­
ters our file!
Four ounces, a dollar; ten ounces, two dol­
lars—
And seventeen dollars to buy the whole
pile.

I t would be nice if we could w ork out
a song dealing w ith the m ost humorous
developm ent of the p ast few years in the
banking field— the proposal to enact a
bank g u aran ty law in Iowa. I have made
a v alian t effort to do som ething of the
sort, b ut w here on ea rth is one to find
an ything to rhym e w ith “bank g u ar­
a n ty ? ” T here’s no rhym e to it— to say
nothing of reason. I got one line finished,
set to the tune of “My Old K entucky
H om e,” which ra n like t h i s :
“ The bull flows free in the legislative
halls,” b ut th ere I stuck. A nybody who
will finish th e th in g can have the copy­
right.
Still, we ought to have som ething
political in this, an election y e a r; why
not v ary the good old Iow a Corn Song
somewhat as fo llo w s:
Oh, I ’m for I-oh-way! I-oh-way!
Come, join B ro o k h art’s ranks; boost for
F a rm e r’s Banks.
Yes, I ’m for I-oh-way! I-oh-way!
T h a t ’s where the tall talk goes!

BOTH SIDES OF THE STORY NO
OTHER STATE C A N TELL!”
IN C E publication of the Septem ber
i s s u e o f T h e N orthwestern
B anker , containing the first of
th e series of three articles under the
above heading, this m agazine has been
deluged w ith requests from subscribers
throughout Iow a, N ebraska, M innesota
and the two D akotas, asking fo r fu rth e r
opinion from both sta te and national
bankers of N ebraska as to the effect of
th e ir g u ara n ty law. Hence, the w riter
will begin th is article w ith quotations
from different le tte rs from N ebraska
bankers, sta rtin g first w ith the “A n tis”
since the “P ro s” occupied first place in
the first article.
H ere are some of the views of N ebraska
sta te bankers who feeel th a t th e ir g u ar­
anty law is an injustice :

S

IS A H A R D SH IP ON THE
CONSERVATIVE BANKER
“ The N ebraska G uaranty Law is one
of the most v ital questions in our sta te
today and could a m an be found who
could reconcile all factions and opinions
he would be hailed w ith g rea t acclaim.
“W e believe the principles to be sound
in theory bu t the operation of the law
has been defective. A t the present, it is
a political football a t the entire mercy
of political changes and unscrupulous
politicians. O ur p resent banking d ep a rt­
m ent have worked w onders in handling
of th e situ atio n b u t we do not know how
long they m ay rem ain in charge. The

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

By R. W . Moorhead
E ditor, N o rth w estern B anker

T H E N E B R A S K A SIT U A T IO N
F o r th e b enefit of those w ho m ay
n o t have re ad th e first a rticle o f this
series th a t a p p ea red in th e Septem ­
b e r issue of the N O R T H W E S T E R N
B A N K E R , these are the facts re g ard ­
ing th e N ebraska g uaranty law situ ­
ation :
N ebraska has a to ta l of 893 state
b anks, w ith $284,000,000 deposits.
Since th e law w ent into effect in
1911, th ere have been 154 state b a n k
fa ilu res, th e vast m ajo rity of these
since 1920.
T he G u aran ty F u n d has liq u id a te d
a n d tak e n all the losses in 117 of these
banks an d is now o p eratin g 37 banks.
N ebraska b an k ers have p a id out of
th e ir own pockets, th ro u g h the G u a r­
anty F u n d , a to ta l of $14,000,000 since
1911. A to ta l of a b o u t $14,000,000 has
also been re aliz e d th ro u g h liq u id a tio n
of the fa iled banks.
T h e average loss p e r b a n k has cost
the G uaranty F u n d a b o u t $130,000
each.

bankers who m ust p ay fo r m istakes and
dishonesty have b ut very little to say
about its adm inistration.
I t m ust be
taken o ut of politics, or the eventual and
sure outcome will be failu re.
“ The adoption of a sim ilar law by our
neighboring sta te s should be carefully
weighed and considered before the tak in g
of a definite step as once tak en it can
never be rep u d iated or laid aside.

“ The G uaranty Law has had a tendency
to cause people to place th e ir money in a
bank which they have know n to be in
som ew hat of a delicate condition y et they
have said, ‘Oh, well, the G u aran ty Law
will p ro tect us,’ and as a resu lt it has
worked a h ard sh ip and has proved a
detrim en t to the conservative banker
and in fav o r of th e reckless loaner.”

NO IN CEN TIV E FOR
HONEST BANKING
“I believe th a t the N ebraska G uaran­
tee Law is sadly lacking both in p rin ­
ciples and operation.
“ The law is like a m utual insurance
com pany, which insures th e g reatest
hazards in a certain com m unity, which
com m unity is bound to be h it every
place a t the same time. I f i t had a suffi­
cient coverage so th a t a t one p o in t where
th e storm occurred, th a t p o in t could be
tak en care of by the rest of th e places
where the storm d id n ’t occur, this law
would probably w ork out all rig h t. B ut
as it is, m utual insurance operatin g u nder
the above system covering only a certain
com m unity ag ain st the w orst hazards
such as hail or tornado, have gone broke
and will continue to go broke as long as
they operate th is way.
“H ow ever, w hen a financial depression
hits a country, th a t is, a very bad finan­
cial depression, it generally h its the coun­
try as a whole, and th erefo re, I believe
th a t th is law is w rong both in principle

THE

14

and operation. A nother great fa u lt has
been, I believe, w ith the ad m inistration
g ran tin g charters fo r banks w here there
was no real need fo r the bank and have
made com petition so g rea t th a t some
bankers have taken on doubtful p ap er
in order to get the business and conse­
quently have suffered g rea t losses. Also
they have g ranted charters to incom­
p eten t bankers which should not have
been done.
“ The w orst fe a tu re of all is th a t it has
p u t the good conservative banker, the
banker th a t has ru n his business honestly
and along careful lines, on the same basis
w ith the incom petent banker, and the
good banker has had to run in com peti­
tion w ith the poor banker and has had
to pay his loss also. U nder this law the
depositor takes the stand th a t the state
banks are all alike, one being just as
sound as the other and he does not care
which bank he puts his money into. This
is not right.
“I believe th a t I am com petent to make
these statem ents fo r the reason th a t I
operated a bank in com petition w ith an ­
other bank. The m anager of this other
bank did not seem to m ake much d istinc­
tion, but loaned money rig h t and le ft to
anyone th a t w anted it. By m aking these
loans he got the bulk of the business, as
his deposits were guaranteed, or sup­
posedly so. This was in the tim es before
depression. L ately his bank has been
taken over by the G uarantee F u n d Com­
mission, who are o perating it as a going
concern. However, having moved from
this place some tim e ago, I am now oper­
atin g another bank a t another place, in
com petition w ith the G uarantee F u n d
Commission, who have charge of the bank
here, also.
“1 would not advise anv sta te to adopt
this plan or any like it.”

N 0 KTHWESTERN

BANKER

W ILL R EPEA L LAW IN FIVE
OR SIX YEARS
“R eplying to your inquiry relativ e to
my opinion of the principle and operation
of the N ebraska G uaran ty Law, w ill say
th a t the public generally has a very good
opinion of the law and th in k th a t it is on
a sound basis. I th in k m any bankers who
are not aw are of the real situ atio n are
also of this opinion and m any bankers
are in such a condition th a t they cannot
w ithstand an exam ination which would
conform stric tly to the law w ithout hav­
ing the G uarantee F u n d to give confi­
dence to the public.
“As a m a tte r of fact, if all the hanks
of N ebraska were to be closed whose
capital stock has been lost by loans in
excess of th e ir real w orth, I th in k a very
serious situ atio n would im m ediately
arise. I do not see an y th in g in the
fu tu re fo r the fu n d except th a t it will
eventually be repealed. However, if we
could get more strin g en t laws reg u latin g
loans and the exam ination of banks, the
operation of the law m ight be prolonged
fo r a num ber of years. Unless some
m aterial change is m ade I look fo r the
law to be repealed w ithin the next five
or six years.
“ The outstan d in g receiver certificates
are about one and one-fourth m illion
dollars in excess of the cash on hand. I t
has worked a g rea t h ard sh ip on bankers
who w an t to convert th e ir in stitu tio n s in
a legitim ate way and they cannot con­
tinue to ca rry the burden w ithout p ass­
ing some of it on to the public in w ay of
higher in terest ra te s on loans and low er
in te re st rate s on tim e deposits. I t will
be necessary, also, to give directors and
officers more personal responsibility and
more financial worth.

S outh D akota D istrusts N ebraska Plan
T he South D akota B ankers A ssociation, w hich recen tly m ade an extensive in ­
vestigation of the N ebraska guaranty p lan , was n o t im pressed w ith the results of
the plan. T he follow ing letter, from S ecretary G eorge A. S tarring, to an O m aha
p ap er, tells th e w hole sto ry :
“ T o the E d ito r,
“ Sept. 13, 1926.
“ O m aha D aily Journal-S tockm an,
“ O m aha, N ebraska.
“ D ear S ir:
“ I have ju st read a story in y o u r p a p e r of S eptem ber 7th u n d e r a L incoln date
lin e in w hich it is re p o rte d th a t a com m ittee re p re se n tin g th is association had been
in N ebraska investigating the o p e ratio n of y o u r g uaranty of deposits law, the first
p a rag ra p h of w hich end ed by saying ‘they w ill recom m end the su b stitu tio n of the
N ebraska p lan fo r th at w hich has b e en w orking out bad ly in th e ir hom e state.’
“ W e w ish to in fo rm you th a t this statem ent is n o t correct. No m em b er of o ur
com m ittee m ade such a statem ent to anyone. O n th e c ontrary, we secured enough
in fo rm a tio n to convince us th a t we certain ly w ould not recom m end the N ebraska
plan. F u rth e rm o re , we did n o t find n e arly the u n an im o u s ap p ro v al of the system
in y o u r state w hich we expected to find. T he am o u n t of d issatisfaction w hich we
fo u n d an d th e feeling th at tro u b le is alm ost in ev itab le w ould su rp rise you. T he
system m ust be in a bad way if its advocates m ust re so rt to u n tru th s in its support.
“ W e w ould ap p rec ia te a c o rrectio n in an early n u m b e r of y o u r paper.
“ C o rd ially yours, fo r the C om m ittee,
“ GEO. A. ST A R R IN G , Secretary,
“ South D akota B ankers A ssociation.”


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

October, 1926

“In m any eases th e cashiers of banks
who have been responsible fo r the m an­
agem ent have only a few shares of stock
or are men w ith sm all financial means
who have purchased a large block of
stock, borrow ing a considerable sum of
money on the purchase price. These
practices have not been in stric t com­
pliance w ith the law which states th a t the
stockholders shall be liable fo r tw ice the
am ount of th e ir cap ital stock.
“M any banks b rag of the large volume
of deposits which has been brought about
by the confidence of the public, b ut on
the other h and m any banks have had
such a large volume of money on which
they are paying 4 p er cent in terest
th a t they cannot p u t it into good invest­
m ents and m ake money and loaning at
8 p er cent on open notes is ap t to cause
banks to make bad loans.
“ Time money placed in banks as an
investm ent m ust be elim inated from the
G uarantee Fund. This in itself would be
a g rea t aid in placing the fund on a b etter
financial basis in the fu tu re .”

NO O TH ER STATE SHOULD
ADOPT SIM ILAR LAW
“P ersonally, 1 feel th a t it is an injustice
to the bankers who ru n good banks, th a t
they pay fo r the oth er m an’s m istakes.
These m istakes are o ften the resu lt of
inexperienced bankers opening up fo r
business and also from profit-taking
which sometimes overrules cautiousness
and good business principles. I f this is
needed as insurance to the depositor, the
depositor should pay fo r it as he does his
fire insurance or an y th in g else of th a t
nature.
“I personally believe it will be an u lti­
m ate fa ilu re in th is state, because a
banker, as a rule, knows very little about
business over and above the average man.
To correct all th e banker m istakes to
come in our sta te would require an
enormous sum of money because every
m onth will hatch out a new batch.
“I would advise no sta te to s ta r t it, as
the people do not ap p reciate the fact,
because they w ill throw th e ir money into
a weak bank ofttim es instead of supportnig a good su b stan tial bank, feeling th a t
ju st so it is a sta te bank in N ebraska,
we should w orry. In this m anner the
‘good fellow ’ gets support and bakes an ­
other weak bank larger, la te r to close,
because of developed losses.
“W e have been favored w ith more de­
posits on account of the fund, b u t mostly
tim e deposits d uring boom tim es, when
we would likewise shove them out, only
to have the collection of the same and
paym ent dem anded when wTe least could
ap preciate it.”

October, 1926

THE

NORTHWESTERN

BANKER

15

“R obbing P eter to Pay P aul”
By a Nebraska S ta te Banker
“ r T l H E R E was an old E u ro p ea n cus.
tom , I believe, to the effect that
a ll crim in als m ust be p u n ish e d
an d w hen it was n o t possible to locate
a c rim in al w hen a crim e h ad been com ­
m itted , som e one of his relatives was
seized an d th ro w n in to p riso n to rem ain
th ere u n til the guilty one could be found.
“ A p p aren tly the state d em anded, w h eth ­
e r rig h t or w rong, th a t w hen a crim e was
co m m itted, p u n ish m en t m ust be m eted
out to som e one.
“ Since th a t day, civ ilizatio n has p ro ­
gressed to the place w here such a p ra c ­
tice o r p rin c ip le is alm ost u n iv ersally a d ­
m itted to be w rong. H ow ever, we do still
have w ith us those w ho go up an d dow n
the la n d p reach in g th at w hen m y n e ig h ­
b o r suffers a m ate ria l loss th ro u g h m is­
m anagem ent, dishonesty, o r otherw ise, I,
who have been m ore fo rtu n ate perh ap s,
m ust give up p a rt of the goods I possess.
If Jones wastes a p o rtio n of the p ro p e rty
th at has been e n tru ste d to him , I, who
have p ra ctic e d th rift an d p e rfo rm e d m y
stew ardship w ith som e degree of care and
p ru d e n ce , am com pelled to m ake good a
p a rt of Jo n e s’ loss w hich m ay have been
occasioned by h is shiftlessness, neglect,
speculation, inex p erien ce, dishonesty, etc.
“ T he p e c u lia r th in g a bout it is th at
o u r L egislature has passed a law m aking
it m an d a to ry th at som e of us m ake good
the losses of o u r n e ighbors, and, e ith e r
w isely o r unw isely, they have chosen
state bankers on ly as the ones who m ust
m ake good.

“ W hy the d isc rim in atio n ?
“W ould it n o t be fa ir to ask the doctor,
the m erch an t, the wage earn e r, and those
engaged in all o th er vocations, to help
m ake up the losses of the b u tch e r, the gro­
cer, and th e c andlestick m aker.
“ I believe the N ebraska guarantee law
is the best guarantee law th at has ever
been devisd and up to this tim e it has
o p e rated w ith a p p a re n t success.
But,
ro b b in g P e te r to pay P au l, o r dem anding
th at Jones pay th e debts of Sm ith, is a b ­
solutely w rong an d econom ically u n ­
sound.
“ T he N ebraska law, as have a ll o ther
sim ila r law s w hich have been b u ilt up o n
u n so u n d econom ic p rin cip les, sooner or
la te r w ill p e rish from the earth . O ur
p re sen t law may survive o u r present
tro u b le s, b u t its death is as certain as
the h a n d w ritin g on the wall.
“ C. M. Skiles, G eneral C ounsel fo r the
dep osit
guaranty
fu n d
com m ission,
th ro u g h th e W all S treet Jo u rn a l, Ju ly
27th of this year, is re p o rte d to have said
that, unless the S uprem e C o u rt p rotects
it (th e guaranty fu n d ) from raids by
b an k ers w ho have sought to evade the
effect of the law , it m ay n o t be able to
pay d epositors in fu ll the losses ahead.
“ T he m em bers of the com m ission, the
secretary of b an k in g and m any b ankers
of the state,’ he adds, ‘have lab o re d alm ost
nig h t an d day to keep this fu n d solvent,
but, unless we have the sym pathetic co­
o p eratio n of this final co u rt of appeal, all

S STA TED in the first article of
this series, 40 p er cent of the
N ebraska sta te bankers, accord­
ing to the questionnaire sent out a few
weeks ago by T h e N o r t h w e s t e r n
B a n k e r , stated th a t they are fo r th e ir
g u ara n ty law, while 60 per cent of them
expressed definite opposition to it.
B ut of the 40 per cent who fav o r such
a law, there is only a very sm all p er­
centage who favor all its present methods
of operation.
In o th er words, the vast m ajo rity of
N ebraska sta te bankers, feel th a t their
present law has defects th a t should be
overcome. Hence, the follow ing s ta te ­
m ents by those who fav o r it, will be
found to contain criticism as well as
words of favor.
H ere are some comments by sta te bank­
ers who favor the law :

other m utual insurance plan, and it
should prove a continued and ultim ate
success eventually.
“G uaran ty F u n d protection should be
provided by all banks fo r the benefit of
depositors. More freq u en t and complete
exam inations w ith some plan working
alone the line of clearing house exam ina­
tions fo r our cities adapted to counties
as u n its (possibly two or more counties
as a u n it).
“ The G u aran ty F u n d has w ithout ques­
tion saved the banking situ atio n in this
p a rt of th e state. I t has been a lifesaver to the N ational banks, in th a t the
m ajo rity of depositors in N ational banks
have labored u n d er the im pression th a t
the F ed eral Reserve System or the N a­
tional Governm ent afforded them the
sam e or g re a te r protection fo r th eir de­
posits in N ational banks as in our Ne­
brask a sta te banks.

NEED B E TTER METHODS
OF EXAM INATION

“In com m unities where N ational banks
have failed w ith g re a t loss to depositors,
the tru e situ atio n has been revealed to
the depositors. Due to the very m eager
publicity given to N ational bank failu res
by our daily nw spapers, and to the great
am ount of space given to state bank fa il­
ures, w ith a surplus of comment and c riti­
cism by some of our prom inent state
bankers, bank exam iners and officials of

/ \

“W e believe the principles of the G uar­
an ty F und law are rig h t and sound; th a t
tim e and experience will rem edy the de­
fects in operation as they develop.
“W e see no reason why it can not be
made to fu n ctio n as successfully as any

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

efforts to keep this fu n d solvent w ill be
of no avail. If, w ith in the next year, we
are u n a b le to pay the bona fide depos­
ito rs of fa iled banks, the S uprem e C ourt
w ill necessarily have to share its fu ll re ­
sp o n sib ility fo r the d e p le tio n of the fu n d .’
I t is re p o rte d th at receiv er’s certificates
are now o u tstan d in g in a b o u t th e same
a m o u n t as is in the guaranty fund.
“ I w ould advise no state to a dopt any
g uaranty Jaw th at m akes it m an d ato ry fo r
a ll state banks to jo in the system . T he
only sound p rin cip le of g uaranteeing d e ­
posits in banks is th at based u p o n a vol­
u n tary in su ran ce m easure c a rrie d on u n ­
d e r the su pervision of the State.
“ F o r N ebraska, the p re sen t law has
done an u n to ld a m o u n t of good in stab­
ilizin g p u b lic o p in io n and b u ild in g up
an alm ost in c re d ib le confidence in the
security of State B anks. On the o ther
h a n d it has also lessened the stam ina and
decreased the m o ral fiber of m any of o ur
depositors, to such a degree th a t it is
alm ost im possible to convict in o u r courts
a m an who has v io lated an d transgressed
o ur b an k in g laws. In fact, in som e cases,
the b an k in g c rim in al becom es a h e ro !
“ Because of the g uaranty law , th e bank
in w hich I am in te rested has, d u rin g the
life of the guaranty fu n d , not only taken
care of its own losses, b u t has co n trib u ted
exactly 199.57 p e r cent m ore th an its cap i­
tal to the g uaranty fu n d to pay th e losses
o f som e u n scru p u lo u s an d ‘so-called b a n k ­
ers’ in the state b anks.”

our S tate B ureau of B anking (all of
whom m ight have b e tte r chased them ­
selves out into some cornfield and u n ­
burdened them selves where none would
h ear them, if they ju st had to ta lk ), the
state banking system has been placed in
an unfavorable light as com pared to the
N ational banking system.
“W hile the N ational bank exam iners
may have a more stric t and complete
system of exam ination (according to
th e ir sto ry ), th an the sta te departm ent,
it has been our observation th a t this has
not elim inated N ational bank failures,
and to our knowledge they are a good
m any N ational banks which have been
p erm itted to continue operatin g during
these p ast six years u nder conditions th at
are a disgrace to the banking system. H ad
our S tate B anking D epartm ent been as
lenient and considerate of sta te banks
during the early p a rt of the depression,
as w ere the N ational banking examiners,
there would not have been so m any state
banks closed, and the cost to going sta te
banks would have been much less.
“N otw ith stan d in g th a t fact, the bene­
fits derived have been w orth the cost.
However, it would be only f a ir if the en­
tire state assum ed a p a rt of the burden.
It saved the day fo r N ebraska, and the
(Continued on page 58)

TH E

16

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

B A N K E R

October, 1926

National Bankers Say Guaranty Law
Is Complete Failure
LAW IS A M ISERABLE
FAILURE
“ I certain ly court every oppo rtu n ity to
express m yself on th e 1A d v an tag es and
D isadvantages of the N eb rask a G u aran ty
L a w ,’ w ith a feeling, too, th a t I reflect
the im pression of hundreds of N eb rask a
bankers, both S tate and N ational.
“ 1. T h at the N ebrask a G uaranty L aw is
predicated on a principle absolutely u n ­
sound and u n fa ir is not a t all deb atab le—
the sta b ility of old established, solid and
conservative ban k in g in stitu tio n s should
not be jeopardized or penalized by th e
shortcom ings or the m ethods of others.
‘ ‘ 2. The present law will c ertain ly a t
least be am ended if not repealed ju s t as
soon as th is can be done w ith o u t seriously
d isturbing our alread y w rought up b an k in g
conditions. In fa c t, th is was seriously con­
sidered during the la st L eg islativ e Session,
but as I personally view it, action was
delayed as much by n atio n al b an k ers who
were in d irectly in tere ste d in the accounts
of hundreds of our sta te b an k ers as by the
state b ankers them selves.
“ 3. In th e face of th e experiences o f
other states w hich have repealed sim ilar
laws and conscious of th e severe drain of
the N ebraska law I never could com pre­
hend w hy any b an k er would w an t to wish
a sim ilar burden on th e b an k in g f r a te r ­
n ity in another state .
“ 4. As a N atio n al b an k in a com m unity
of 16,000 com peting w ith th ree sta te ban k s
and one oth er n atio n a l in s titu tio n i t is
probable th a t a t least a m illion dollars of
deposits now lodged in th e sta te banks in ­
fluenced by th e ir ad v e rtisin g of th e law
would have been lodged w ith us, b u t since
our problem here is one of an o u tlet for
funds ra th e r th a n th a t of pilin g up of highpriced deposits we do not feel th a t we
have been affected. W e are all th e more
content in our position, realizin g th a t th is
m illion dollars in deposits since the G uar­
a n ty L aw w ent into effect has cost our
com petitors about $125,000.

PRIN C IPLES DISHONEST,
UNSOUND AND UNJUST
“ Ours is a n atio n a l bank. W hen th e
G u aran ty L aw w as passed we had a S tate
savings B ank w hich came under th e law.
We rem ained under th e law u n til th ey had
assessed the Savings B ank $90,000, the last
two years $22,000 a year. We concluded
th a t we had b e tte r g et out so we liq u id ated
and m ade it a d epartm en t of th e N atio n al
B ank. I m ight sta te , to show th a t the
g u arantee fe atu re had no p a rtic u la r effect
on us, th a t our deposits increased b o th in
dollars and in num ber of depositors, and
have g radually increased from th a t tim e.
“ 1. The G uaranty principle is dishonest,
unsound and u n ju st. I t p u ts a prem ium on
inexperienced, dishonest b an k in g to the

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d etrim en t of experienced, conservative
banking.
“ 2. I th in k ev en tu ally it w ill be w iped
off the sta tu te s. I th in k N eb rask a is the
only one le ft except K ansas w hich is ju s t
hanging on by th e eyelashes fo r a short
time.
“ 3.’ I c ertain ly would not advise other
w estern sta te s to adopt th e law. They will
re g re t it.
“ I th in k th e sta te s th a t have a g u a ra n ty
law have suffered more th a n the sta te s th a t
did not have it and from th a t th ere have
been more failures. T h a t is easily explained
from th e fa c t th a t it opens th e door to
w ild cat b anking. ’ ’

FOOLING NEBRASKA
DEPOSITORS
“ R eplying to your in q u iry as to th e a d ­
v an tag e s and d isad v an tag es of th e N e­
b rask a G u aran ty Law.
“ We have ju s t been aching fo r ju s t such
an o p p o rtu n ity as th is in w hich to express
our opinions of th is w onderful boon (?) to
sta te banks. We th in k it has already
proven itse lf to be unsound, uneconomical
and w ith o u t m e rit in every respect. Its
operation can be likened to a to y balloon
— it m ust b reak and th e n the children will
cry. In oth er w ords, it is th e p la y th in g of
politician s and under its flag th ey are
soliciting business by m isrepresentation,
w hich w ill ev en tu ally leave a deep scar
upon our fa ir state.
‘ ‘L et us consider th e ir statem en t of Ju n e
th irtie th , la st:
In th e G u aran ty F u n d ............$ 820,320.86
Less conservation fu n d ........ 629,546.22
B alance ...................... $ 190,774.64
U npaid and o u tsta n d in g ..........
R e ceiv er’s C ertificates ........$1,000,000.00
W h at rem ains? ............................... A deficit
“ I f th e G u aran ty F u n d is not alread y in ­
solvent why do we nev er see a sworn s ta te ­
m ent of its actu a l condition? How m any
failed banks are now in th e hands of th e
Commission and co ntinuing to operate?
“ South D akota, N o rth D akota, K ansas,
and num erous oth er states have trie d it
and have fa ile d — N e b ra sk a ’s tu rn is ju s t
around the corner, although those in charge
contend th a t i t is stronger th a n ever be­
fore. W hy pull th e wool over th e eyes of
th e innocent people of N eb rask a w hen
sta tistic s show th a t it is alread y a fa ilu re ?
How much do th ey spend fo r a d v ertisin g ?
W hy do th ey employ pages of copy in local
new spapers to “ keep the good w ork g o in g ”
and solicit from unsuspecting depositors?

URGES IOWA TO AVOID
SUCH A LAW
“ Yours of th e 10th.
because of the p oliticans
the N eb rask a fu n d and
try in g to paw n it off on

W e reply simply
m aking c a p ita l of
w ill be, and are,
th e sta te of Iowa.

Please note we are a n atio n al bank. F a r
from being w orried by the fund as we and
our neighboring natio n als are around tw ice
as large as our com petitors.
“ F irst. L ike all B ry an theories, it is
unsound. I am reliab ly inform ed th a t Mr.
B ry an laid his 1896 d efeat a t the door of
th e b an k s and alw ays said to his friends
th a t th ere w as one place he got even was
in th e g u aran tee law s in the states w here
he had a follow ing. A b an k is not a quasi­
public in stitu tio n any more, not nearly as
much as a farm or grocery store. There is
n o t a leg to stan d on to th e argum ent th a t
th e sta te b an k s of N eb raska should and
have w orked fo r th e la st six years to pay
th e debts of a mess of crooks and specula­
tors. Our com petitor tells us he has not
made a dime since th e depression and can­
not charge of his own w eak paper.
“ Second: They have alread y reduced
the assessm ents to one-half the form er
am ount as I recall. This was done to put
off th e ‘ ‘ day of judgm ent. ’ ’ S ta te b ank
frien d s told me a t th e tim e th a t i t would
have ruined h a lf th e banks of the state
if it had not been reduced.
“ Third. No. I t has been suggested th a t
th e fu n d should only cover non-interest
deposits th a t people do not have th e protec­
tion on other investm ents. I f the people
m ust be g u aran teed le t i t be by insurance
and th en each b an k w ill stan d on its own
bottom . The insurance companies ta k in g
th e risk w ill a u d it th e ir risks and the
crooks w ill be out of luck. I f th e g u ar­
antee law is a sound theory w hy is it only
about 10 per cent as m any nationals as
sta te s have failed in N ebraska. S tates can
loan on th e basis of cap ital ju s t tw ice w hat
a n atio n al can. T h at point alone is one of
th e big w eaknesses in th e sta te law b u t the
‘boom ers’ fight any change as th ey c a n ’t
pull th e ir stuff on a sound loaning b a sis.”

NEBRASKA PRO SPERS
D ESPITE GUARANTY LAW
“ The G u aran ty L aw fo r b ank deposits in
N eb rask a is not any different from th a t of
oth er sta te s w here it absolutely failed.
The difference in N eb raska and other
sta te s lies in th e fa c t th a t N ebraska has
such a d iv e rsity of products th a t it is
n ev er a complete fa ilu re in all a t any one
tim e. In eastern N eb rask a we raise cattle,
corn, hogs, w heat, oats, barley, hay, and
in th e southeast apples, peaches and other
fru its. In th e northw est, hay, c a ttle and
potatoes, and in th e extrem e w est in ad d i­
tio n to th e others nam ed above we raise
sugar beets. So w hen prices are low and
an over-production in some of these pro­
ducts th ere is alw ays a good dem and for
some of the others an d N ebraska has come
sm iling th rough not on account of the
G u aran ty Law , b u t in spite of it. This
law w as first advocated and finally p u t
into effect by some visionary dem ocratic
p o litician s who had v ery little experience
in p ra c tic a l business affairs and it has sur­
vived w hen th e same law in oth er states

October, 1926

THE

w ent down, on account of th e reasons
sta te d above.
“ This law has caused or given an oppor­
tu n ity fo r our sta te to be flooded w ith sta te
banks, it has encouraged reckless banking,
it has placed th e conservative b an k er on
equal fo o tin g w ith th e speculative banker,
it has enabled persons op eratin g a b an k to
secure deposits th a t otherw ise never would
have been tru sted . As a m u tu al insurance
proposition, i t is w rong, because it places
the same ra te of insurance on a speculative
bootlegging b an k er th a t is charged fo r
g u aran teein g the deposits of th e b an k er
who is conservative and safe.
“ All of the losses have n o t been enum ­
erated when the depositors in th e sta te
banks of N ebrask a have been fu lly paid.
The stockholders in these sta te banks are
deserving of even more th a n th e depositors
who are not stockholders. I t has been
estim ated th a t th ere is about one-tenth
enough money to pay off all of th e deposits
in th e banks of th is country. The other
90 per cent is represen ted or based on the
cred it th a t is extended by th e banks fo r
tra n sa c tin g business. The stockholders in
the banks have m ade it possible by e sta b ­
lishing a b ank fo r th e people to have a v a il­
able th is ad d itio n al 90 per cent of all th e
deposits as a cred it fo r tra n sa c tin g b u si­
ness, I f th is were not tru e , business would
be ham pered and we would find it alm ost
im possible to tra n sa c t th e volum e of b u si­
ness now done. B u t w h at happens when a
bank fails? U nder th is system th e de­
positors are p aid out and th e stockholder^
lose th e ir stock an d in alm ost every in ­
stance th ey are still fu rth e r penalized by
having to pay an ad d itio n al 100 per cent
as stockholders lia b ility an d all because
they have volunteered to add an a d d itio n al
90 per cent to the volume of cred it fo r th e
benefit of th e people in tra n sa c tin g th e ir
business.
“ A nother reason th a t I would m ention
is th a t the b an k deposits are a v ery sm all
proportion of th e en tire w ealth of N e­
braska or even th e n atio n w hen com pared
w ith the value of th e real estate, live stock,
stocks of m erchandise, grains, an d im prove­
m ents of all kinds. A g u a ra n ty system
th a t continually w eakens a financial stru c ­
tu re to alm ost th e b reak in g poin t by a sys­
tem of draw ing on th e same, w ill e v e n t­
ually, if continued, destroy or b reak down
the financial stru c tu re and w hen th is is
broken down or destroyed th e value of
other pro p erty is v ery m a te ria lly decreased,
business is stag n ate d and a general depres­
sion follows. I f th e financial stru c tu re
would rem ain in ta c t th e people who have
made bad selections in th e ir ban k s and
have suffered losses w ill recu p erate and be­
come th r if ty again, b u t on th e oth er hand
it is im possible to rise above th e tid e w here
the financial stru c tu re has been w eakened
or destroyed as is th e case w hen th e b a n k ­
ing system , so to express it, is d rain ed by
continual assessm ents. The stockholders
are bearin g th e burden and th e people too
w here in te re st ra te s have been increased
to m eet th is ex tra demand.
“ I t appears th a t we could g et down to
a b e tte r financial system if th e people
would no longer depend upon th is g u a r­
an tee law and in selecting th e ir banks
assist in w eeding out th e speculative
banker and in sist th a t every b a n k er stand
on his own m erits as to business a b ility and
character.
“ I t has been tru th fu lly said th a t in an
a g ricu ltu ral country such as ours th a t if
we destroy th e tow ns an d leave th e farm s,
the tow ns w ill spring up again, b u t if we
destroy th e farm s th e grass w ill grow in
every street in every tow n in th is country.

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

B A N K E R

17

H o w N e b ra sk a B a n k e rs V iew
T h e ir G u a ra n ty L a w
T he N O R T H W E S T E R N B A N K E R recen tly sent out a q u e stio n n a ire to every
state and n a tio n a l b a n k in N ebraska, asking fo r th e ir opin io n s on th e ir G uaranty
Law. Q uestions an d answ ers w ere as follow s:
Of 400 state banks and 49 n a tio n a l banks in N ebraska th at answ ered T H E
N O R T H W E S T E R N B A N K E R q u estio n n aire, on th e ir a ttitu d e tow ard th e N e­
braska g uaranty law , questions an d answ ers w ere as follow s:
(1) “ W hat is y o u r o p in io n of the p rin cip les and o p e ratio n of the N ebraska guar­
anty la w ? ”
A nsw ers. 220 state b an k s and 48 n a tio n a l banks are opposed to the p rin cip les an d
o p e ratio n o f the law. 180 state banks an d one n a tio n a l b a n k favor it.
(2) “ W hat do you th in k w ill be the outcom e of th e p la n ? ”
A nsw ers. A lm ost a ll of the 220 state banks who are n o t in favor of the law p re d ic t
its u ltim ate dow nfall an d repeal. Of the 180 state banks favoring the law , 75
p e r cent of them say th e situ atio n w ill rig h t itself in five years o r less. T he re ­
m aining 25 p e r cent advocate c ertain changes in it before v e n tu rin g an o p in io n
on its outcom e.
(3) “ W ould you advise o th er m id d le w estern states to a d o p t a sim ila r law , and, if
so, w hat changes, if any, w ould you suggest?”
A nsw ers. Sixty p e r cent of a ll rep lies from state banks w arned o th er states n o t to
a d o p t a guaranty p la n sim ila r to the N ebraska p lan , 10 p e r cent of a ll the re ­
p lies w ould change the law in c ertain respects before urg in g its ad o p tio n , 10
p e r cent fran k ly advise o th er states to a dopt the N ebraska p lan as it now stands,
an d 20 p e r cent of th e state h an k ers fa ile d to v en tu re an o p inion.
(4) “ H ow has th e g uaranty law affected y o u r b a n k an d y o u r c o m m u n ity ? ”
A nsw ers. T he answ ers range a ll the way fro m “ H as saved N eb rask a,” to “ H as to rn
dow n o u r state financial stru c tu re .”

“ So, if we destroy th e financial system
by a series of assessm ents th a t are b u rd en ­
some and unbearable, we m aterially affect
th e en tire w ealth of our state.
‘ ‘ Iow a w ith its some 150 b an k failu res
is in b e tte r financial condition today th an
N ebraska, because th e financial stru ctu re
rem ains in ta c t and th e w eak ones have
gone out. I t is tru e, th e people have su f­
fered losses b u t th e real value of th e pro p ­
e rty has not been decreased on account of
b reak in g down th e financial stru ctu re. We
in N eb rask a are d riftin g along w ith some
50 to 100 crippled b an k s under th e g u a r­
a n ty commission w hich are grow ing worse
all th e tim e and most of these, even u tally
w ill have to be liq u id ated and th ere is a
large indebtedness and th e outcome of the
system is v ery much doubted even by sta te
bankers. They would like to g et rid of
it b u t do n o t know how to le t th e anim al
go. They te ll me th a t th ey are a fra id of
th e results i f th e y should do aw ay w ith th e
system because deposits would be w ith ­
draw n from th e sta te banks so rapidly,
especially in th e w estern p a rt of th e state,
th a t it would be im possible fo r th e sound
sta te banks to stem th e tid e or p ay the
losses and a crash would follow in the
financial stru c tu re , th e results of w hich
would outlive th e presen t generation.
“ I could fill volum es on th is subject b u t
1 th in k th is is enough.”

PLAN W ILL FAIL
EVENTUALLY
‘ ‘In answ er to your le tte r, as p resid en t
of a sta te b an k and an officer of a n a tio n al
bank, I subm it the follow ing answ ers to
your questions:
“ *1. W h at is your opinion of th e p rin ­
ciples and operation of th e N eb rask a G uar­
a n ty L a w ? ’
“ The G u aran ty L aw created a boom in
b anking. I t caused th e creation of two
ban ks w here one could easily supply the
necessary b an k in g service. M any of the
new banks were established by men who

had no b an k in g experience, and often the
banks w ere ru n by incom petent officers. I t
rap id ly increased deposits in sta te banks,
and much of th is increase was derived from
oth er sta te s and other sources. M any of
these deposits were too large for the banks
receiving them , an d were m ade because
th ey w ere p ro tected under the g u aran ty
system . W hen tim es got hard, or the de­
positors w anted th e ir money, these deposits
proved to be ‘ d y n a m ite ’ to the banks.
These grow ing deposits created com peti­
tion, not only to receive more deposits,
b u t also to m ake a d d itio n al loans in order
to g et the in terest. As a result, more loans
were made on a speculative basis, and for
more th a n th e norm al security would ju s­
tify . A lot of these loans are now frozen
or doub tfu l loans, and the percentage of
loans to deposits is too large.
‘ ‘ The G u aran ty P la n is w rong in p rin ­
ciple, because it m akes good banks pay
fo r th e losses incu rred by the poor banks,
and w ith o u t an y com pensation.
“ To cite the case of one b ank w ith which
I am fa m ilia r: This bank has a cap ital of
$25,000, and has had an average deposit of
not over $300,000. The g u a ra n ty assess­
m ents p aid in six and one-half years was
over $14,000. Over eig ht and one-half per
cent a y ear on th e ir capital. This bank, like
m any others, has not p aid a dividend, nor
increased its surplus, in the p ast five years.
The stockholders have received no wage
fo r th e ir money invested.
“ ‘2. W h at w ill be th e eventual outcome
of th e p la n ? ’
“ I d o n ’t know. U nder the sta te b a n k ­
in g laws th e banks are not p erm itted to
loan to any one person or firm more th a n
20 per cent of th e ir cap ital and surplus,
while th e n atio n al b an k law s lim it such
loans to 10 per cent of the cap ital and sur­
plus. N early all of th e sta te banks have
exceeded th e te n per cent lim it, and can­
n o t nationalize.
‘ ‘ A s tric t enforcem ent of th e regulations
now would be a calam ity. I t would cause
more b an k failu re s and would throw m any
(C o n tin u e d on p ag e 37)

18

THE

NORTHWESTERN

BANKER

October, 1926

w ard A. H intz, cashier of th e Peoples
T ru st and Savings B ank of Chicago.

R. C. Budlong, agency publicity di­
rector of the N orthw estern N ational L ife
Insurance Com pany of M inneapolis, is to
be congratulated upon the recent series
of nine advertisem ents ru n in the leading
insurance and financial journals, stress­
ing the id e n tity of the nine members of
the board of directors of th a t company.
Owing to the use of identical halftones of
the directors, together w ith setting of
units, the advertising was readily recog­
nized as a p a rt of a series by the reader,
and while the N orthw estern N ational
L ife is by no means a newcomer in the
field, the num ber of changes in person­
nel during its business history now brings
it into position to capitalize on the splen­
did prestige of the men who now form
the m anagem ent. The series of adver­
tisem ents have now been reissued in
booklet form.
“F o r C alifornia R eaders O nly” heads
the follow ing a d : “The Iow a Fam ily
Tree (C alifornia B ranch) is p rep arin g a
d irectory which is to include the nam e
and address of every rep resentative Iow a
fam ily now living in C alifornia. You are
invited to reg ister your fam ily now—
and w ithout fee or obligation of any
kind. In reply please p rin t plainly your
name, perm anent C alifornia addi*ess and
fo rm er Iow a address. F orm er Iow a ad ­
dress is necessary.” Signed, “The Iow a
F am ily Tree, Los Angeles.” So f a r as we
have been able to determ ine, this is the
only “fre e ” thing ever given an Iow an in
C alifornia—except advice.
“A m erica’s fa ste st growing crim e”—
check forging and raising—is costing
banks and business men of the U nited
S tates between $100,000,000 and $300,000,000 annually and the losses are grow ­
ing each year in an alarm ing rate, was
the message recently brought to the Chi­
cago ch ap ter of th e A m erican In stitu te
of B anking by W . L. B a rn h a rt, vice p res­
ident of the N ational S urety Company of
New York. The g reatest handicap which
banks and protective agencies have to
overcome in th e ir ta sk of apprehending
and convicting forgers and sw indlers, Mr.
B a rn h a rt said, is the reluctance of bank­
ers and business men to adm it they have
been swindled. “O ften,” he said, “they
are so asham ed of th e ir credulity they
will not even re p o rt the case to the po­
lice.” I t should be a sim ple m a tte r to
pocket your pride if by so doing you
could protect yourself against forgers
and sw indlers.

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H igh finance as rep o rted in New York
concerns a m an who in h erited $10,000 in
the form of bonds of $100. He took them
to a safe deposit com pany and found
upon inquiry th a t a box large enough to
hold them would cost $10 a year. The
idea of paying this much annoyed him
and he went to his bank and made a loan
which cost him 30 cents per annum in in­
terest and le ft his 100 bonds in the bank
as collateral fo r the loan. He then took
the $5.00 he had borrow ed and deposited
it in a savings bank at H/k p er cent, re­
ceiving 23 cents in in terest. Thus the
bonds were safely taken care of fo r a
year and the cost was only 7 cents.
Carl A. Gode, publicity d irecto r of the
Illinois M erchants T ru st Company of
Chicago, who recently resigned as tre a s­
u re r of the F inancial A dvertisers Asso­
ciation a f te r eight years of able service
to th a t organization, is now tak in g a
w ell-earned vacation. Mr. Gode will be
succeeded in his splendid w ork by Ed-

F red S taker, publicity generalissim o of
the Commerce T ru st of K ansas City, sent
us this one. “T hat new te lle r is a m an of
stone, th a t’s all,” ejaculated the cashier.
“ How do you know ?” “Y esterday I
pointed out a g irl to him who was w ear­
ing one of those g a rte r w atches. He
looked the other way and said he d id n ’t
care w hat tim e it w as.” No one could
call this fellow a clock-w atcher.
To see the w ay some people spend
money rem inds us of the sto ry of the col­
ored m an who had spent all of his money
on the m erry-go-round. W hen he alighted
from his la st rid e his th rifty w ife con­
fro n te d him w ith, “Now yoh spent all yo
money, nigger, w ha’s you bin ?”
Econom ists tell us th a t no midsummer
dullness has developed in general busi­
ness this year. This is very interesting
in view of the fac t th a t every year since
the war, w ith the single exception of
1922, th ere has been a general slowing
down d u rin g the sum m er months. The
p resen t prospects are th a t no d rastic
change in these general conditions will
tak e place during the rem aining m onths
of 1926.
(C ontinued on page 34)

Among the Black Hills of
South Dakota

Top row—No. 1, p artial view of canyon near Crystal Cave; No. 2, looking down
Whitewood H ill, near S turgis; No. 3, R. E. Lemley, cashier, S tate Bank of Scenic,
the center of the Bad L ands; No. 4, A. C. Frolich, cashier, the L ittle Missouri Bank,
Camp Crook, South Dakota.
Bottom row— No. 5, another view of Whitewood H ill; No. 6, left, William Lange,
cashier; center, David Hughes, director; right, C. E. Lange, president, Jam es County
S tate B ank, M urdo; No. 7, another view in the B lack H ills, near Deadwood.
The photos above were taken by R. V. Lentz, advertising director for the N O R T H ­
W ESTER N BA N K ER, who enjoyed several days of vacation amid the splendors of
the B lack H ills of South D akota.

October, 1926

TH E

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

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19

B A N K E R

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57 Ifears of Seasoned Experience in every
phase of banking service has qualified this
bank to act for you as “A Thoroughly
Satisfactory Chicago C orrespondent.”
We cordially invite you to utilize the broad ex­
perience, conservative counsel and sincere helpful­
ness which our correspondents uniformly enjoy.

1926

1869

Fre d er ic k H. R a w s o n

H a r r y A. W heeler

Chairm an of the Board

President

C r a ig B. H a z l e w o o d
V ice-President

U N IO N TR U ST
COMPANY
CHICAGO
W

SA FETY


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SPIR IT

EXPERIENCE

CALIBER

C O N V E N IE N C E

CO M PLETEN ESS

PRESTIGE

THE

20

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

October, 1926

B A N K E R

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m iiim m m im m iim m im im iiiiiiim m m ^

I SPECIAL SECTION DEVOTED TO THE
FINANCIAL ADVERTISERS CONVENTION

j

W hat They Said at Detroit
TRUST COMPANY
ADVERTISING
M odern tr u s t service advertising has
developed from a tim id mouse into a
ro aring lion, Theodore Teift W eldon, vice
p resident of Wm. E llio tt Graves, Inc.,
told delegates a t the D etroit meeting.
A d m itting th a t while a g rea t deal of
tru s t com pany advertising is thoroughly
good, nevertheless as much of it is ju st
as thoroughly bad, Mr. W eldon said in
p a rt:
“ S tartin g w ith tru s t new spaper adver­
tisin g it would seem th a t it is too gen­
eral. I t contains too much the feeling
of philosophical argum ent—of p ro p a­
ganda. I t is fu ll of banalities, self-evi­
dent facts, bromides.
I t dwells o n :
1. W h at the tru s t com pany does;
2. Its perm anence;
3. How careful, experienced and com­
p etent it is;
4. I t com pares the excellence of tru st
company service to the shortcom ings of
an individual.
“ This may all be very convincing and
very necessary, b u t isn ’t it the m oat
around the fo rt ra th e r th a n the picked
soldiers to be sent out to press the a t­
ta c k 1? W ill not the more successful ad ­
v ertising sell the read er on his own prob­
lem first, then tell him how to solve it,
and finally tell him how im portant the
tru st company is to his plan?
“P erhaps your prospect—the average
man on the street who has some money and
expects to make a fortune before he dies—
is w orried about a son who is wild, yet
whom he dearly loves and wishes to p ro ­
tect. Isn ’t this an opportunity fo r you
to show how human and sym pathetic you
are, how you appreciate th at the more
worthless a boy is, often the more com­
passion his fath er feels fo r him. I f you
play on this subject and skillfully show
this man a way out, he will come in and
talk to you about it.
“Maybe his daughter will m arry a
spendthrift. The thought worries him.
Does his wife know anything about busi­
ness? W ill she indulge in charities she
cannot afford afte r he is gone? Is she
easily swayed? Could she he sold an un ­
sound investment ? I f she has a keen
business mind, is she soft-hearted? W ould
she give in to the pleading of her chil­

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dren fo r financial indulgence, even against
her best judgm ent? Does she need p ro ­
tection from this tem ptation? A re finan­
cial m atters uncongenial to her? W ould
she appreciate being relieved from them?
“H as the prospect meddling relatives
whose well-meant interference and advice
may work m ischief? H as he parents or
dependents to whom he is now paying an
income and does he wish it continued ? He
must remember th at his heirs might cut
them off, o r if they did not do that, they
might make it very unpleasant fo r those
dependents by taking an attitu d e tow ard
them which would prove even more dis­
agreeable than poverty.
“Does your prospect like his w ife’s rela­
tives? Does he understand th at if she
outlives him there is a grave possibility
th at all his p ro p erty will ultim ately go
to her fam ily and not a penny to his?
“ The prospect will be more interested
in knowing' how much cash he should leave
his executor to protect his estate from
various death items, th an to know th a t
your tru st company is perm anent. I t will
strike him nearer home to learn why an
executor, inexperienced in this highly
technical work, may g reatly overpay in ­
heritance taxes and other probate ex­
penses, than to hear the bald fact th at a
tru st company is more efficient than an
individual.
“ How many false claims m ight be p u t
over on an individual executor, how f a r
can he he trusted, how he would handle
things, his financial responsibility to p ay
for his own errors, are m atters which are,
of course, im portant to every testator.
But they will not get his attention as
quickly as those things which w orry him
more, such as how m any states will tax
his holdings upon his death, and how
much his estate will shrink at the moment
of his death.
“These are things which disturb the
average m an of w ealth. Through your
advertising you can whet his hunger for
knowledge on these subjects, and in satis­
fying it, you can tell your whole story.
“The problem then becomes one of
touching these vital points w ith authority
and aptness, always weaving in a back­
ground of the tru st com pany’s efficiency,
experience and permanence.
“ The tren d in tru st advertising seems
fo rtu n a te ly to have a tendency away
from general propaganda, the hromidic,
and to be steering a course tow ard the
very definite problem s which confront

te sta to rs in the ever-increasing com­
plexities of m odern business and mod­
ern life.
“Now let us suppose th a t a man is
p a rtia lly convinced th a t this tru s t thing
is som ething w orth th in k in g about.
“Then w h at?
“H e m ust sum m arize his fam ily and
p ro p erty situ atio n and form a plan fo r
the p rotection of his dependents. He
has th ree altern ativ es. H e can sit down
and do it alone; he can let you help him ;
or he can go to his atto rn ey . Being but
p a rtia lly sold, he will attem p t to do it
him self, in the g rea t m ajo rity of cases.
“Now, his is an extrem ely difficult and
laborious task. All you men and women
are fam iliar w ith the usual practical p ro ­
visions of wills and tru st agreem ents.
You have seen lots of them —helped lots
of people m ake them. B ut to the aver­
age m an it is a new line of thought,
strange, one upon which he will make
little headw ay.
H ere is a big gap to be filled. The
public needs to be told w hat to p u t in
a will or a tru s t agreem ent exactly. The
average m an needs a form to guide him,
one which he can follow step by step so
th a t his ideas will tak e fo rm in his m ind
as he goes along, will be well ordered
and nothing will be overlooked. Most
en terp risin g ad v ertisin g departm ents of
tru s t companies have folders on wills,
and various form s of agreem ents which
give the m ost p ractical altern ativ es of
each question to be decided, b ut rarely
indeed are they given the prom inence
they deserve in the scheme of selling.”

A R EV IEW OF SAVINGS
BANK ADVERTISING
The im provem ent in the q u ality of
bank ad v ertisin g during the p a st few
years has been astounding, Guy W.
Cooke, assista n t cashier, the F irs t N a­
tional B ank of Chicago, said in his
splendid address on “A Review of Sav­
ings B ank A d ertisin g ,” a t the D etroit
conference. A fte r p resen tin g to the con­
d itio n , a num ber of advertisem ents of
form er days, he made the follow ing com­
parison between today and yesterday in
savings bank ad v ertisin g :
“W e of the p resen t day have de­
veloped a certain am ount of style and
technique, probably giving more a tte n ­
tion to policy and plan th an did those

October, 1926

THE

whose advertisem ents appeared before
most of us here had any connection w ith
financial advertising.
Collectively we
have followed m any by-paths. Savings
advertisin g is tied up w ith spending.
The C hristm as Club, the V acation Club
and the Save to Travel Clubs are but
instances of the presen t day tendency to
offer inducem ents fo r savings th a t are
not in herent to th rift. Banks have de­
veloped various plans fo r savings and
insurance—savings and investm ent and
savings and checking; all of these plans
have been productive of and developed
bj^ excellent advertising. There is prob­
ably no form of savings ad v ertising th a t
has been so extensively used as th a t in
connection w ith the C hristm as Savings
Club idea and the other com binations
m entioned while not so universal in th e ir
appeal nor so generally adopted by sav­
ings banks, offer ad v ertising possibili­
ties— advantage of which has been taken
to the fu lle st degree.
“As yet savings ad v ertising apparently
has been able to offer little to m eet di­
rectly the com petition of p a rtia l p ay ­
m ent buying. The p ractice of “buy now,
pay la te r” has gained considerably on
“you can do it b e tte r w ith cash.” E m ­
ployees and custom er ow nership in cor­
porations and speculative and semispeculative investm ents have taken m il­
lions of dollars th a t m ight have once
been results fo r savings bank ad v e rtis­
ing. P erh ap s it is as well so. The old
school of experience rem ains the best
teacher and those who are responsible
eith er fo r savings bank ad v ertising or
savings bank m anagem ent or both may
gain a reasonable degree of satisfactio n
in the fa c t th a t savings deposits in the
U nited S tates have more th an doubled
in the la st 10 years.
“ Savings banks have profited by ad ­
vertisin g and the cause of advertising
has been served by savings banks. The
bank which advertises and its neighbor
which does not pay the same ra te of in­
terest. The cost of the ad v ertisin g is
absorbed by volume. Progressive policy,
evidenced by advertising, assures broader
facilities, m ore com prehensive service
and a b etter appreciation of financial re ­
quirem ents.
“ Savings advertising no longer needs
economic justification.”

TH E VALUE OF NEW SPA PER
PU B LIC ITY
A dvertising fo r savings accounts in the
prosperous Iow a town of Cedar Rapids,
has grown to an astonishing degree, said
C. E. A uracher, advertisin g m anager fo r
the Cedar R apids Savings B ank and
T ru st Company. A fte r describing the
C hristm as savings advertising, the “new
baby” advertising cam paigns, M r. A u­
racher made the follow ing interesting


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NORTHWESTERN

BANK E R

O F F IC E R S A N D D IR E C T O R S
FIN A N C IA L A D V E R T IS E R S
A SSO C IA TIO N , 1926-1927
P re sid e n t— C. H. H a n d erso n
of
C leveland.
F irst V ice P re sid e n t— H. F. H odapp
of New Y ork.
Second V ice P re sid e n t—K lin e L.
R o b erts of C olum bus.
T h ird V ice P re sid e n t— C. H. W ette ra u of N ashville.
T re a su re r— E. A. H intz of Chicago.
D irectors— C a rro ll R agan o f New
Y ork, C. E. B ourne of M ontreal, A. E.
B ryson of C hicago, F ra n k F uchs of
St. L ouis, F. W. G ehle of New Y ork,
R o b e rt J. Iz an t of C leveland, F. R.
K e rm an of San Francisco, M arjorie
Schoeffel of P la in fie ld , F re d M. S taker
of K ansas City, D ale G raham of St.
L ouis, M innie A. B uzbee of M inne­
apolis, A. D ouglas O liver of P h ila d e l­
phia, C arl A. G ode of Chicago,
T hom as J. K ip h a rt of C incinnati, E.
E nnis Jo n es of P h ila d e lp h ia , H. J.
B e rn a rd of H ouston.
F o r m em b er fo r 3 years of the A d­
v ertising C om m ission of the In te rn a ­
tio n a l A dvertising A ssociation— C lin ­
to n F. B erry.

comment on the value of new spaper p u b ­
licity :
“W e consider th a t new spaper publicity
is as valuable to our in stitu tio n as ad v er­
tising th a t we pay for, if not more so.
W e get into the read in g columns a t every
opportunity. I t is a stan d in g joke w ith
one new spaper th a t I send all ad v ertis­
ing copy to the editorial rooms. L ast

Ja n u a ry , a talk given by one of our offi­
cers dui’ing N ational T h rift W eek a t one
of the public schools was published in a
space th irty -six inches single column.
T h irty inches of publicity was secured
not long ago on our Save-to-T ravel Club.
The C hristm as Club also comes in fo r
p ublicity each year. P u b licity is a m a t­
te r of ta k in g th e tim e to secure and a r ­
range m aterial th a t will be accepted by
the new spapers, and the m axim um bene­
fit comes when th ere is a plan fo r con­
tinuous publicity. W e secure publicity
also in the way of interview s w ith offi­
cers, news items, m ention of lobby dis­
plays, etc. O ccasionally one of the a r­
ticles in our house organ th a t is of p a r ­
tic u la r local in te rest is republished in
th e new spaper.
“M any banks spend from fo rty to sev­
enty per cent of th e ir to tal advertising
ap p ro p riatio n fo r new spaper space, but
how m any give much thought to a plan
fo r continuous publicity in the new s­
papers ? E ven a legitim ate business such
as banking is not singled out by the
press of the country or even by local
publications to any g rea t extent and its
activities made the subject of publicity.
The stim ulus m ust come from the b a n k e r;
he m ust in itiate the new spaper man.
“G enerally speaking, news and pub­
licity are fo r all p ractical purposes one
and the same, except th a t news is g ath ­
ered fo r the public th a t desires to be
inform ed, while publicity is presented
from the point of view of one who de(Continued on next page)

C onvention R esolutions
This Convention has given members, their fam ilies, visitors and
guests a rem ark ab ly clear vision of its dynam ic force, w hich through organiza­
tion and efficiency has g en erated an occasion long to be rem em bered and
W h e r e a s , The Michigan group of the Investm ent B ankers Association, the indi­
vidual b an k and tru s t companies of D etro it, the general com m ittee com prising
four exmembers of D e tro it’s citizenry and also to the program committee of
which Mr. Clinton F. B erry was such a capable chairm an, have given th eir u t­
most in tim e, ta le n t and a b ility to the complete success of th e convention, and
W h e r e a s , The T a m -0 ’Shanter Golf Club gave of its warm hospitality on the
occasion of th e golf tourn am en t, th e A d e ra ft Club provided an evening of the
finest en te rta in m e n t a t the B onstelle T heatre, th e W om en’s C om m ittee co n trib ­
u ted th o u g h tfu lly and p ain sta k in g ly to th e en te rta in m e n t in a m arked degree;
th e in v ited speakers whose contrib u tio n s have made th e tim e spent w orth spend­
ing an d have given us unbounded in sp ira tio n —including Ty Cobb, m anager of
the D etro it B aseball team , and E d g ar A. Guest, whose po etry of life was so g rip ­
ping, and th e D etro it Free Press, whose generosity placed in the hands of each a
volume of Mr. G u est’s la te st w orks, and
W h e r e a s , The Officers, D irectors and Executive Committee of the Association
for th e y ear 1925-1926 have served most w isely and loyally, and
W h e r e a s , Carroll Ragan, the retirin g president, has given most freely of his
tim e to th e fu rth e ra n c e of the o rg a n iz a tio n ’s affairs, and
W h e r e a s , Mr. Carl A. Gode of Chicago, who has served this association so
fa ith fu lly , d ilig en tly and accu rately during eig h t term s of office found it neces­
sary to relinquish his post as tre a su re r during th e p ast year, th erefore be it
Resolved, T hat a hearty vote of thanks be tendered him as our appreciation of
his work and as an acknow ledgm ent of our obligation to him fo r having success­
fu lly conducted our financial affairs during all these years.
W h e r e a s , The financial publication, Countrywide, has so freely aided to make
secure the attendance a t the convention, therefore, be it
Resolved, T hat this convention go on record as expressing a vote of the deepest
and most sincere th a n k s to all of those in d iv id u als and organizations w ith the
firm assurance th a t th e ir deeds and th e ir dynam ic in te rp re ta tio n of the reason
fo r our sojourn shall rem ain as a v ita l ch ap ter in our history.
W hereas,

21

22

THE

(C ontinued from preceding page)
sires to inform the public. W hile bank
publicity and bank advertising w ork to­
g eth er hand-in-hand and each is stre n g th ­
ened by the other, they are different in
th e ir requirem ents, th e ir execution and
point of view. P ublicity is commonly
thought of as free advertising but since
the purpose of the new spaper is to p rin t
news, genuine publicity is news and not
advertising w earing a cunning veil. A d­
vertising ru n as publicity no longer de­
ceives the reading public but its own
purpose as well.

NORTHWESTERN

BANKER

“ T he b a n k ’s p u b lic ity m an is a r e ­
p o rte r so to sp e a k , w o rk in g f o r th e n ew s­
p a p e r w ith o u t p a y , b u t e n te rin g h is m a ­
te ria l in c o m p e titio n w ith th e re g u la r
new s fo r sp ace in th e re a d in g colum ns.
A t tim es he w o rk s in close co o p e ra tio n
w ith th e re p o r te rs by tip p in g th em off
to in fo rm a tio n w hich th e y them selv es
w rite u p as p u b lic ity . A t th is p o in t, th e
m a te ria l is e le v a te d above th e field of
a d v e rtis in g ; it is acc e p te d f o r p u b lic a ­
tio n because o f its Avorth as neAvs. The
p u b lic ity m an in th e b an k h as an ad-

October, 1926

v a n ta g e o v e r th e n e w sp a p e r r e p o r te r b e­
cau se he c an a c tu a lly m ake events h a p ­
p en in o rd e r to o b ta in p u b lic ity , b u t he
m u st k e e p in m in d ahvays th a t his neAvs
sto rie s m u st be su b m itte d w holly and
e n tire ly f o r th e ir neAvs value.
“ A t th e p re s e n t tim e, we a re g e ttin g
co n tin u o u s p u b lic ity in one of o u r daily
neAvspapers in a sp ace e ig h t in ch es single
colum n. A se rie s o f six te en a rtic le s Avas
p re p a re d u n d e r th e title “ M odern I n ­
v e stin g .” E a c h S u n d a y one o f th ese a r ­
tic le s a p p e a rs w ith th e fo llo w in g subc o n t i n u e d on p age 27)

The ‘‘Advertising Clinic'”
E d to r’s N o te : Below is given a com ­
posite o f the fifteen re p o rts sub m itted to
the “F in a n cia l A dvertising C lin ic” at the
D e tro it m eeting of the F. A. A. T he
sum m ary is by A. D. W elton, fo rm er a d ­
v ertisin g d ire c to r fo r th e C ontin en tal
an d C om m ercial N atio n al B anks of C hi­
cago, now w ith the M eyer-B oth B ank
Service.
T he “ C linic,” p re sid ed over by F re d
W. E llsw orth, vice p re sid en t of the H i­
b e rn ia B ank an d T ru st Com pany, New
O rleans, dealt w ith a survey of a h y p o ­
th etica l b a n k in a city of 175,000, giving
a som ew hat fu ll account of th e a d v er­
tisin g experience to date and giving v ital
statistics relativ e to the vario u s d e p a rt­
m ents. A ll active m em bers of the F in a n ­
cial A d v ertisers’ A ssociation w ere in ­
v ite d to w rite a b rie f data given to de­
term in e :
(1) A P u b lic ity P olicy fo r the b a n k to
follow , in p rin c ip le , perm anently.
(2) A T hem e to be follow ed fo r the
year w hich form s the basis fo r a d v ertis­
ing p lanned.
(3) A com plete P u b lic ity P ro g ra m fo r
the c u rre n t year, on an a p p ro p ria tio n of
$ 10, 000.
T he th ree best b riefs w ere selected by
a com m ittee com posed of Guy W. Cooke,
A ssistant C ashier, F irst N atio n al B ank,
C hicago; G aylord S. M orse, A ssistant
C ashier, State B ank of C hicago; A. E.
B ryson, V ice P re sid e n t, H alsey, S tuart
and C om pany, Chicago.

Composite of the Repoj'ts
B y A. D. Welton

C L A S SIFIC A T IO N of the ideas
of how to d istrib u te the ap p ro p ri­
ation is of more th a n passing in­
te re st and, in regard to some points there
is sufficient unanim ity to make it com­
p arativ ely easy. The difficulty of class­
ification is m et only in the m inor items
but as there was no system to follow —billboards and car cards are not always
distinguished. Sometimes both are cov­
ered under such a heading as posters.
W indow and lobby displays zxe united.
D irect m ail efforts are often divided as to
m aterial, fo r instance, statem en t folders
and blotters are sep arated from leaflets,
booklets and mass plan m atter. Novel­
ties, in which are included pocket banks,
celluloid calendars and tablets, some­
tim es cover b lotters also. B ut, w ith the

A


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exception of the one co n testan t avIio be­
gan his b rief Avith the statem en t th a t he
Avas n eith er an ad v ertisin g m an nor a
copy w riter, there Avere points of agree­
m ent. W ith the one exception noted
every co n testan t advocated new spaper
copy. The am ount of th e ap p ro p riatio n
to be devoted to th a t purpose varied, but
the v ariatio n s w ere not so g reat. One
proposed an expenditure fo r new spaper
space of $5,000, and one Avas as Ioav as
$1,800, b u t the general recom m endation
was from $2,700 to $3,600. The conclu­
sion seems w arran ted th a t these fifteen
men believe about one-third of the ap p ro ­
p riatio n should be spent Avith neAvs­
papers.
Billboards and Direct Mail
B illb o ard s a n d d ire c t m a il sh a re a b o u t
e q u ally in fa v o r ( ?) m ad e specific reco m ­
m e n d a tio n s as to b illb o a rd s. T he a m o u n ts
ra n g e fro m $600 to $3,900, b u t th e a v e r­
age is close to $2,200, so Ave m a y say
ro u g h ly th a t o n e-eig h th o f th e a p p ro p r ia ­
tio n sh o u ld be giA7en to o u t-d o o r or p o ste r
d isp la y .
D ire c t m ail is in h ig h faA or b u t Avith
m a n y v a ria tio n s o f id e a as to th e m a n n e r
o f its use. T he reco m m e n d a tio n s ru n
fro m $250 to $6,250, b u t th e y av e ra g e
close to $2,000. O ne m ay Avell h e s ita te
to sa y th a t th e re is a rg u m e n t t h a t onefifth o f a te n th o u sa n d d o lla r ($10,000)
a p p ro p ria tio n sh o u ld be sp e n t f o r d ire c t
m ail a d v e rtisin g .
T he c a lc u la tio n s of
co st p e rm it too m a n y v a ria tio n s . Some
o f th e c o n te s ta n ts assu m ed th e 666 b a n k s ’
e q u ip m e n t in c lu d e d m a ilin g lists, add re sso g ra p h a n d m u ltig ra p h fa c ilitie s
a n d som e in c lu d e d th e la b o r costs. Six
m en tio n e d specifically th e m ass p la n o f
d is trib u tio n f o r sav in g s p a rtic u la rly .
S e v e ra l in clu d ed th e cost o f p e rso n a l le t­
te r s f o r th e d ev elo p m en t o f tr u s t b u s i­
ness a n d th e re Avas g re a t d iv erg en ce of
o p in io n as to th e m e rits o f le tte r s or
b o o k lets f o r sa fe d ep o sit. C a re fu l a n a ly ­
sis in d ic a te s a d isp o sitio n to sp en d a b o u t
$3,000, fo r d ire c t m ail a d v e rtis in g o f all
k in d s.

WindoAv and lobby displays are popu­
lar, but here, too, ideas of cost vary.

The com posite of the suggestions of­
fered shows roughly about as fo llo w s:
N ew spaper space .......................$3,300
O utdoor ..........................................1,200
D irect by m a il...................... 3,000
W indow and lobby display. . 300
NoAmlties a n d c a le n d a rs ............

600

M iscellaneous, including em er­
gencies ..................................... 1,600
$ 10,000

T he m iscellan eo u s re co m m en d atio n s
co v er a r a th e r Avide ra n g e . In c lu d e d are
tra d e le tte r s , house o rg a n s or p u b lic a ­
tio n s f o r saAers, ho u se o rg an s f o r em ­
ployes, dues to v a rio u s a sso ciatio n s, p ro ­
g ra m s, h o ld -u p s a n d b lack m ail, w hich are
sp ecifically m en tio n ed , tr a in in g o r p e r­
sonnel, sm all b a n k s, p o c k et mem o books
an d , o fte n , sa la rie s. O m ittin g th e item
o f s a la rie s a n d alloAving $1600 f o r em er­
gencies, e x tra v a g a n c e s, b lu n d e rs and
w h a t-n o t, it w ould seem t h a t th e B lan k
N a tio n a l B a n k A\To uld g e t along p re tty
Avell u n d e r th e c irc u m sta n c e s by spen d in g
f o r neAvspapers $3,300, f o r o u td o o r
$1,200, fo r d ire c t by m ail $3,000, f o r w incI oav a n d lobbies $300, a n d f o r c a le n d ars,
b lo tte rs, n o v elties, etc. $600.
W e Avill agree th a t a y ea r’s cam p aig n
could be p u t on fo r th a t and the rest

Avould depend on hoAV it Avas done.
A rthur D. W elton ,
Counsel, M eyer-Both Bank
Service, Chicago.
P o e try m ak es im m o rta l all th a t is best
a n d m o st b e a u tifu l in th e w o rld ; it a r ­
re s ts th e v a n is h in g a p p a ritio n s w hich
h a u n t th e in te rlu n a tio n s of life , an d ,
v e ilin g th em , o r in la n g u a g e o r in fo rm ,
sen d s th em f o r th am ong m an k in d , b e a r­
in g sw eet new s o f k in d re d jo y to th o se
Avith w hom th e ir sis te rs abide, because
th e re is no p o rta l o f e x p ressio n fro m
th e c a v e rn s o f th e s p ir it Avhich th e y in ­
h a b it in to the u n iv e rse o f th in g s. P o e try
red eem s fro m d ecay th e v is ita tio n s of
th e d iv in ity in m an .— Shelley.

T ru st men, and they will be tru e to
you; tre a t them greatly, and they will
show them selves g reat.—Em erson.

October, 1926

TH E

N O R T H AV E S T E R N

BANKE R

23

Sidelights of the F. A. A. Convention
H E honor of having the largest del­
egation from one city a t the conven­
tion goes to Chicago, w ith approxi­
m ately sixty members and rep rese n ta­
tives in attendance. A m ajo rity of this
group arrived Sunday night on the TwiL ight Special.

T

F inancial D etroit opened wide its
doors to this g rea test collection of finan­
cial ad v ertisin g w izards the w orld has
ever seen. They came from every section
of the U nited S tates and a num ber of
cities in Canada.
One of the m ost interesting fea tu re s of
the conference is a large exhibit of finan­
cial advertising on display. I t is made
up of every type of advertising m aterial
used by banks and bond houses.
F o rtu n a te ly a large num ber of invest­
m ent houses have become members of
the association and instead of regarding
advertising as a necessary evil, instead
of indulging in it m ildly and ineffec­
tively, there are bond houses, still too
few in num ber, who because of a rig h t
view point tow ard th e ir advertising have
lifte d it to the level of the advertising in
other fields both in technique and results.
G aylord S. Morse, an expresident of
the association, Chicago, recognized as
one of the keen thinkers am ong financial
advertising men in A m erica, is here Avith
his charm ing w ife and little daughter
Gayl. Three things of im portance stand
out in fav o r of G aylord’s in stitu tio n —
The S tate B ank of Chicago. F o r some
time, i t ’s stock has been the highest of
any bank in the city, R alph V an V echten
has been brought in as the new president,
and now a contract has been let on La
Salle S tre et to build the in stitu tio n one
of the most m odern banking homes in the
country.
New Y ork has sent a goodly num ber of
keen publicity men to the m eeting. These
include Carol Ragan, U nited S tates M o rt­
gage & T ru st Company, who is the re ­
tirin g presid en t of the association; A r­
th u r De B ebian of the E quitable T rust
Company, F re d W. Gehle of the Chase
N ational and H. G. ITodapp of the N a­
tional City Company.
H erb ert V. Prochnow, publicity m an­
ager fo r the U nion T rust Company, Chi­
cago, is quietly absorbing pointers a t
eA'ery business session. A year ago he
succeeded P aul L. H ard esty as ad v e rtis­
ing m anager and his rcork has already
proved itself unusual fo r its effective­
ness. AVe Avill hear more about this
m an’s w ork as tim e goes on.

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By Wm. H. Maas
Chicago banks spend upw ard of six
million dollars a year fo r bank advertis­
ing. This is a conservative estim ate a l­
though Ave have been unable to find any
one AA'ho Avould h azard a guess as to the
to tal am ount of money spent annually
fo r ad v ertisin g by all the banks In the
U nited S tates.
E dw ard H intz, tre a su re r of the asso­
ciation, aaI io is cashier of the Peoples
B ank & T ru st Company, Chicago, Avas
considered among the lucky ones a t the
convention. Im m ediately follow ing ad ­
journm ent he boarded a tra in fo r P h ila ­
delphia as a guest of C. C. Pyle (m anager
fo r “R ed” G range) to have a ringside
seat a t the D em psey-Tunney fra ca s in
tlie Q uaker City.
The C ontinental & Commercial Banks
of Chicago have t A v o splendid rep rese n ta­
tives here. Ju liu s K. W aibel and H.
F re d W ilson are the able rep resen tativ es
of the fo u rth biggest bank in the coun­
try .
W illiam J. Kelly, vice p resid en t of the
Chicago T ru st Company, avIi o , in cid en t­
ally, has served as secretary of the Asso­
ciation of Commerce of Chicago and had
a lot of other civic jobs w ished onto him
the p ast couple of years, is one of the
youngest executive officers of m etropoli­
ta n banks in the country.
The well-known Corboy fam ily of Chi­
cago and the C entral T ru st Company of
Illinois is ably represented by Louis Cor­
boy, capable bank ad v ertisin g m anager.
J. N. E aston is a neAvcomer in the field
of financial advertising, b u t has already
made a good im pression upon members
of the association. H e is in charge of
publicity fo r the N orthern T ru st Com­
pany of Chicago, which is located a t the
nortliAvest corner of La Salle and Monroe
streets.
Two of th e good old standbys of the
F in an cial A dvertisers A ssociation from
Chicago are Carl Gode of the IllinoisM erchants and Guy Cooke of the F irs t
N ational Bank. The association Avould
not be the success it is w ithout having
had the benefit of the tim e and vision of
these tA\To men.
P resto n Reed, secretary of the associa­
tion, Avith offices in Chicago, has proved
him self the “100 per cent efficient secre­
ta ry .” M any nice things are being said
in his fav o r as concerns his m anner of

handling the m ultiple duties th a t come
before the association from day to day.
M rs. M. K. Graves, chairm an of the
board of the W illiam E llio tt Graves, Inc..
30 N. M ichigan Avenue, Chicago, has sent
tAvo capable rep resentatives. Theodore
Tefft W eldon, vice president, form erly
ad v ertisin g m anager of the N orthern
T ru st Company, Avas one of the speakers
before the convention. The other rep re­
sentative is W. T. W ilson, Avho recently
joined the Graves organization a fte r suc­
cessful Avork Avith the 0 . A. Ivoss Com­
pany of D etroit. D uring the p ast six
m onths the Graves in stitu tio n has g ra d ­
ually added a splendid corps of executives and field men Avho should do credit
to the w ork of the la te pioneer, W illiam
E llio tt Graves, Avho passed aw ay on the
eve of the la st F . A. A. convention.
M any of the delegates a t the F . A. A.
have packed th e ir bags fo r a long trip
across the country to atten d the annual
convention of the A m erican B ankers A s­
sociation in Los Angeles.
T hat the w ork of the adAertising m an­
agers is m eeting w ith the Okeh of the
executiA’e officers of the banks is demon­
strated here through the attendance of
m any senior officials along w ith th eir
publicity representatives. Several bank
presidents from various p a rts of the
country made a special trip here fo r the
meeting.
The S tan d ard s of P ractice originally
adopted by the association ten years ago
are still rigidly adhered to and have ac­
com plished much fo r the public as well
as fo r the banks, tru s t companies and
oond houses. These include the discour­
agem ent of clean and efficient ad v e rtis­
ing; the discouragem ent of financial ad ­
v ertisin g in new spapers and periodicals
th a t do not m easure up to the highest
stan d ard s, as well as encouraging the in ­
vestm ent through rep u tab le financial in ­
stitu tio n s of the surplus moneys of the
A m erican people.
W hether you are w illing to give finan­
cial ad v ertisin g credit or not, the p er cap­
ita savings deposit in banks in the U nited
S tates d u ring the p ast decade has grown
from $90.00 in 1915 to slightly more than
$204.00 a t the p resen t time.
F o u r other prom inent delegates from
the N ortlrw est include C. W. H illberg of
the F irs t N ational, M inneapolis; Eugene
C. GlasgOAv, NortliAvestern N ational, M in­
neapolis; C. S. Y arnell, Jr., L ane-PiperJaffrey, M inneapolis, and W. E. B rock­
man, M innesota Loan & T ru st Company.
(Continued on page 34)


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TH E

October, 1926

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

25

B A N K E R

On the Opposite Page
S n a p s h o t s t a k e n a t t h e F i n a n c i a l A d v e r t i s e r s C o n v e n t i o n l a s t m o n t h in D e t r o i t .
N o. 1, l e f t t o r i g h t , E l w e l l W h a l e n ,
A m e r . B k . a n d T r . Co., P h i l a d e l p h i a ; S a m P . J u d d , m g r . p u b l i c i t y , M e r c a n t i l e T r . Co., St. L o u i s , a n d F r a n k J. C a m p b e l l , f i n a n c i a l
a d v e r t i s i n g c o u n s e l , D e t r o i t . N o. 2, G a y l o r d M o r s e , a s s ’t c a s h i e r , S t a t e B a n k , C h i c a g o , f o r m e r p r e s i d e n t o f t h e F . A A. N o . J,
P r e s t o n R e e d , s e c r e t a r y o f t h e F . A. A . ; D a l e G r a h a m , a d v . m g r . , M i s s i s s i p p i V a l l e y T r . Co., St . L o u i s , a n d C l i n t o n B e r r y , v i c e
p r e s . , U n i o n T r . Co., D e t r o i t . N o. 4, L o r i s C o r b o y , a d v . m g r . , C e n t r a l T r . Co., C h i c a g o , a n d J . M. E a s t o n , a d v . m g r . , N o r t h e r n i r .
Co., C h i c a g o . N o . 5, M r s . J . F . G a r d i n e r , C h i c a g o ; M r s . J a m e s B u s t a r d , D a n v i l l e , V a . , a n d M r s . R . S. J e n s e n , P o r t A n g e l e s , W a s h .
No. 6, G e o . H . K e i m , C h i c a g o ; J . F . G a r d i n e r , a s s t . a d v . m g r . , H . M. B y l l e s b y & Co., C h i c a g o . N o. 7, C. H . W e t t e r a u , a s s t , v i c e
p r e s . , A m e r . N a t . B k . , N a s h v i l l e . N o . 8, W m . J . K e l l y , v i c e p r e s . , C h i c a g o T r . Co. N o . 9, E d w a r d H i n t z , c a s h i e r , P e o p l e s T r u s t a n d
S a v . B a n k , C h i c a g o . N o . 10, C a r r o l l R a g a n , p a s t p r e s i d e n t , t h e F . A. A., a n d G u s H a n d e r s o n , n e w p r e s i d e n t o f t h e F . A . A. N o.
11, C. K . W o o d b r i d g e , N e w Y o r k , p r e s i d e n t , I n t e r n a t i o n a l A d v e r t i s i n g A s s n . N o. 12, W m . H . M a a s , v i c e p r e s i d e n t , t h e D e P u y
P u b l i c a t i o n s , C h i c a g o , a n d F r e d M. S t a k e r , a d v . m g r . , C o m m e r c e T r . Co., K a n s a s C i t y .
.,

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A Detroit Delegate's Daily Diary
fiiiiiiiiiiiiiu iiin iiiii

Saturday, September 18: A nother
year and another F . A. A. Convention.
I f D etroit does h a lf as much as she
prom ises to do it will be a g rea t m eeting.
J u s t saw George W ay W illiam s buying
his tick et fo r Richmond. H e is to make
a speech before the F a rm M ortgage
B ankers’ A ssociation. I know it will be
a good one too because th a t is the only
kind George ever makes.
Sunday, September 19: There should
be a law against fu rn ish in g cold w ater
to shave w ith in Pullm ans. I had a
tough time of it this m orning removing
the “sagebrush.” The Rock Island is
late again—very unusual. I intend to
speak to H al R ay about it.
H ad b re a k fa st a t H en rici’s. George
W illiam s suggested we atten d the F o u rth
P re sb y teria n Church and hear Dr. Tim ­
othy Stone. I gladly consented. H eard
a fine sermon. H. L. M encken says,
“M inisters are tick et scalpers outside the
gates of heaven”—b u t not so w ith Dr.
Stone. H e knows more about the real
gospel th an m any m inisters I have heard.
Saw John S. Brocksmit “passing the
plate.” Jo h n probably forgot it was the
S abbath day and th a t he should not ply
his trad e seven days in the week. A ny­
way, I noticed Jam es B. F organ, J r ’s,
nam e am ong the T rustees so I guess
everything financial is 0 . K.
A t 3 p. m. I le ft Chicago fo r D etroit on
the Tw ilight Special. M ost of the Chicago
delegates were on board, except G aylord
S. Morse, who w ith his w ife w ent up by
bus. Incidentally, since G aylord is step­
ping on the publicity pedal and “V an ”
has joined the Caravan, the deposits are
rolling in.
Some of the boys invited me to have a
drink in their drawing-room. I do not
believe I have ever tasted p u rer W hite
Rock or more sparkling C anada Dry. I t
is strange w hat effect these beverages
have on some people. Even one of the

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Federal Reserve Bank of St. Louis

m.mi i.m

delegates recited poetry while others told
w onderful stories of experiences they had
had.
Ju liu s K . W aibel introduced me to his
w ife—now I know th e real reason fo r
his success. I t is rem arkable the power
some women have.
Our train was on time at D etroit.
P reston Reed met us at the station. Took a
Buick taxi to the hotel. There are no Yel­
low taxis in D etroit, They are not al­
lowed. W e had to w ait in line at the
S tatler to register. I have a nice room
bu t I do hope Mr. S tatler will wake up
some day and p u t longer m irrors in his
hotel rooms so I can see above my A dam ’s
apple w ithout being round-shouldered
and humpbacked. I guess he doesn’t ex­
pect any six foot “he m en” to use his
hotels.
Monday, September 2 0 : I played golf
today a t the Tam O’S h an ter Club. B eau­
tifu l course and a p erfect day. This is a
sta g golf club w ith about 70 members
who pay $2,500 each to join. There is a
long w aiting list the D etro it boys tell me.
The golf club is 20 miles out from the
city. D riving back I th ought I was in
Florida, w ith subdivision a fte r subdi­
visions as f a r as the eye could see. I t
will tak e a considerable m ultiplication of
the population of the “D ynam ic F o u rth
C ity” if these “lot holders” ever make
any money. One woman, Louise L athrop,
has made a million as a subdivider ex­
p e rt—b u t it w ill tak e a city of 4,000,000
to ever m ake the lots valuable to the
p resen t owners. The population now is
about 1,600,000.
Some rep o rts indicate th a t the peach
crop in M ichigan will be a little short this
year. I couldn’t see any signs of it on
the streets of D etroit.
D etro it has m ade a w onderful record
as an in d u stria l center. There have been
only a few failu res and the bankers tell

m.i,,,,, ,,i„,

uiiiMii.nH.mnr

me it is because of the large am ount of
“liquid assets” alw ays available. W hat
a blessing to have Canada as a next-door
neighbor.
F re d N. S tak er heard a fu n n y conversa­
tion in a re sta u ra n t this m orning when he
was ordering his b rea k fa st. H ere is w hat
is was, together w ith F re d ’s tra n s la tio n :
F U N E X— H ave you any eggs ?
S V F X— Yes we have eggs.
F U N E M— H ave you any ham ?
S V F M—Yes we have ham.
0 I C U F M N X — Oh I see you have
ham and eggs.
*
Tuesday, September 21: Bum ped into
H a rry R. Drew as I was going in to break­
fast. H a rry has been east looking over
oth er new business d epartm ents to get
some ideas on w hat the other fellow s are
doing. W e m atched fo r the b re a k fa st—
and I lost. H a rry said it served me
rig h t, to gamble th a t way.
F.
A. C randall will rep resen t th e ir
bank a t the A. B. A. This will be the
20th consecutive A. B. A. convention th a t
Mr. C randall has attended. T h at is some
record. A fte r the Los Angeles gath erin g
he will go to H onolulu fo r a trip , H a rry
said.
E ddie G uest and “ T y” Cobb en ter­
tain ed us a t luncheon this noon. They
are a g rea t p air. E ddie was kep t busy
before th e speaking sta rted , au to g rap h ­
ing copies of his book. “ The L ight of
F aith ,” which the D etroit Free Press
gave to each one present. E ddie knows
how to tak e the common things of life
and w rite po etry about them. H e knows
the hum an appeal to th e ’n th degree.
E ddie was d elightfully introduced by
A rth u r D. W elton, who used to work
with him on the Free Press in the early
days. M r. G uest said, “I read all th e
financial ads in the hope th a t some day
I may be one of your custom ers.” Be­
cause of his love of n atu re and his many
frien d s, M r. G uest adm itted “he was the

26

TH E

richest m an in D etroit w ith the least
money.”
A fte r the th e a te r dancing “was en­
joyed” on the stage. W. E. Brockm an
took first prize in an unofficial C harles­
ton contest which was held. Oh, boy, but
he can d a n c e ! W. H. M aas danced w ith
the “blond se cretary ” who was ai beau­
tifu l b ru n ette off stage. J. M. E aston
and L. W . Corboy were also keeping step
w ith the steppers.
C. W . H illberg,
Eugene G. Glasgow and C. S. Y arnell,
J r . u n fo rtu n a te ly (?) had to leave be­
fore the dancing started.
Wednesday, September 22:
H eard
some good speeches this m orning. H enry
G. W eaver said if he had $25,000 to spend
fo r advertising he would spend $5,000 of
it in research to help him decide ju st how
and fo r w hat purpose he should spend
the rem aining $20,000. T hat sounds like
sense. A ny advertising cam paign, if it
is to be a success, should have a definite
objective— a goal.
Guy W. Cooke presided a t the luncheon
this noon. Guy is full of “d ry ” hum or
and knows how to introduce the speakers
so they will have a running sta rt.
Charles K etterin g who was the first
luncheon speaker, said, “A dam p church,
a morgue and a bank were three of a

FIRST
T H E

IN

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

kind.” T h at is some indictm ent of the
modern bank. H e also said, “ninety-five
per cent of the people don’t know w hat
a bank is fo r.” Looks to me like the
F. A. A. still has plenty of opportunities
to ‘do its stuff” if the vice president of
a big corporation talks like th a t in public.
T hursday, Septem ber 23: I t was ra in ­
ing hard this morning. This was F o rd ’s day
as we all w ent to th e R iver Rouge p lan t
to D earborn and to the F o rd A irp o rt sta ­
tion. I had no idea of the vastness of
the flivver facto ries u n til this trip . To
think w hat one man has done in tw enty
years is m ost rem arkable. Mr. F o rd has
200,000 people on his payroll in the U. S.
and there are 600,000 people directly and
indirectly dependent on him fo r a living.
He works three sh ifts of 8 hours each.
He produced 6,500 “ra ttle boxes” today.
Acres of space are used ju st fo r the p a rk ­
ing of cars of the employes. Mr. F o rd
carries about $100,000,000 in cash on
hand they told us. Rum or has it th a t he
is w orking on a new 6-cylinder Ford,
but no one knows definitely.
Mr. and M rs. E. H. M cIntosh invited
me to dinner a t th e ir home tonight. Mr.
and Mrs. P resto n Reed and Mr. and Mrs.
W . H. Maas were also present. I t was a
most delightful dinner. A bout 9 p. m. we
listened to the prize fight. Ja ck took an
aw ful pounding—b ut I suppose he could

FI NANCI AL

F I R S T

October, 1926

B A N K E R

stand fo r a good deal of beating fo r
$700,000.
Speaking of Mr. M cIntosh, according
to the A d c ra ft Club edition of the
D etroit Free Press News Times, he made
a convention address which was reported
as fo llo w s: “F inance is no longer fre n ­
zied. In fa c t it is difficult fo r the average
m an to determ ine w hat it is and y et we
boys receive handsom e salary checks each
m onth fo r in te rp re tin g to an eager public
a subject th a t defies even a P andolfo or
a Ponzi to elucidate. T rying to teach the
d ear old public th a t baby bonds, fa th e r­
less stocks and 3 per cent savings are the.
thing, inducing the b o o b letariat to p a rt
w ith its h ard-earned ducats is the tough­
est kind of a tough proposition. Y et we
boys m ust b rin g in the money or out we
go. M erchants can sell th eir m erchan­
dise by sim ply m aking people w ant it.
W e have nothing to sell except lith o ­
graphed p aper, promises to pay and 10
cent bank books. W e m ust dig the
simoleons out of the sock and dangle
g litterin g prom ises of w ealth, of leisure,
or trip s to E urope before the diggers be­
fore we get any retu rn s from the agate
lines we w rite and w rithe about. W e are
the king-pins of finance, we advertising
men, and w ithout us M organ would be a
flat tire and D illon Reed a busted flute.”
Too much of one th in g is good fo r
nothing.— Thales and Solon.

SERVICE

W I S C O N S I N

O B .O U P

(d)H E First W isconsin National,
i

the largest bank in the state
the largest bank northwest
of Chicago and the twentysecond largest national bank
in the United States ^ pro­
vides a banking service com­
plete in every detail
F I R S T W I S C O N S I N N A T I O N A L B A N K of
with which are affiliated the

F IR S T W IS C O N S IN T R U S T C O M P A N Y
and F I R S T W I S C O N S I N C O M P A N Y


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

M

il w a u k e e

October, 1926

THE

NORTHWESTERN

BANKER

WHAT THEY SAID AT DETROIT
(C ontinued from page 22)
h ead: “P re p ared by the Bond D ep a rt­
m ent of the C edar R apids Savings Bank
and T rust Company. A series of a r­
ticles such as this, p rin te d in the rea d ­
ing columns as reading m a tte r and ru n
w ithout cost to the bank is w orth m any
tim es the same m aterial p rin te d as ad ­
vertising copy in paid space.”

EM PLOYES MUST CO O PER­
ATE IN ADV ERTISING
The president of the bank, or its offi­
cers, are not the chief salesm en of the
in stitu tio n , on the contrary, the employes
of the bank are the principal salesm en
of the b an k ’s services, declared Dr. W. P.
G ephart, vice president of the F irs t N a­
tional B ank of St. Louis, a t the D etroit
m eeting. E nlarging on th is thought he
said in p a r t :
“I t is th e em ployes o f th e b a n k who
have th e m o st fr e q u e n t c o n ta c ts d ay by
d a y w ith th e b u y in g p u b lic who a re th e
c h ie f salesm en o f th e b a n k ’s serv ice. I t
is th e officers w ho a re d e a lin g w ith th e
p u b lic, th e te lle rs a n d th e d e p a rtm e n t
h ead s. E v e n th o u g h a d e p a rtm e n t h e a d
o r h is em ployes a re n o t com ing in to d i­
re c t p e rs o n a l c o n ta c t w ith th e b a n k ’s
p a tro n s a n d th e p u b lic, n e v e rth e le ss, th e y
a re se llin g th e b a n k by th e m a n n e r in
w hich th e y do th e w o rk a n d tr a n s a c t th e
bu sin ess o f th e p a tro n s b y th e Avay in
w hich th e y a re w ritin g le tte r s , by th e
p e rfo rm a n c e a n d th e c o rre c tn e ss w ith
w hich th e y a re c o n d u c tin g th e b u sin e ss
o f th e b a n k a n d th e p a tro n .

“ The advertising departm ents
of
A m erican banks spend m illions of dol­
lars telling the patro n s and the public
w hat the bank can do and w hat service
the in stitu tio n can render. B ut, all this
w ork of the advertising d epartm ent is a
prom ise and not a perform ance. The
ad v ertising m ust be m ade rea l—th a t is,
tangible and concrete by the w ork of the
officers and employes. A dvertising, be­
cause it is a com paratively new phase o r
kind of business, has m any of the ad ­
m irable qualities as well as the w eak­
nesses of youth. I t is enthusiastic, it is
aggressive, it is optim istic, and some­
tim es it is inclined to m ake la rg e r prom ­
ises th an the article or the service w ar­
ran t. The article in the case of a p ro d ­
uct and the service in the case of an in­
stitu tio n m ust alw ays m ake good the ad­
vertising. In banking, ad v ertising m ust
not oversell the bank, a thing com para­
tively easy to do. This resu lt some­
tim es comes about, on the one hand, be­
cause of the long continued conservatism
of bank officials them selves, and on the
other hand, because the active, aggres­
sive, enthusiastic ch a racter of the adver­
tising man. B anking of all industries

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Federal Reserve Bank of St. Louis

ESTABLISHED

18 7 9

Forty-Seven Years
in Chicago
Bankers, more so than other business
men, appreciate the value andimportance of a long and varied experience.
It is the most valuable asset any indi­
vidual or financial institution can
possess. For it signifies sound judg­
ment, understanding and seasoned
capacity in the transaction of business
affairs. The State Bank of Chicago
— established in Chicago for fortyseven years — will be glad to explain
and demonstrate its specialized serv­
ice for correspondent banks.
The new State Bank o f Chicago building
— the site o f which is now being pre­
p a red a t L a Sal l e a n d Mo n r o e
Streets — will provide increased facili­
ties for a constantly growing clientele.
H en r y A. H a u g a n
Chairman Board o f Directors

R alph V a n V echten
President

L eroy A. G o dda rd
Chairman Executive Committee

O scar H . H a u g a n
Vice Chairman o f the Board

State Bank
of Chicago
LA SALLE A N D W A S H IN G T O N STREETS

Member Federal Reserve System

C apital $2,500,000

S urplus

U n d iv id e d P rofits $7,360,000

27

28

THE

has perhaps been the slowest to take on
new functions to try out new ideas, and
this is due p a rtly to the train in g of the
bank official, but very largely to the
fact th a t the public expects above all
th a t his banker be conservative, even
u ltraconservative.”
The fashion wears out more apparel
than the man.— Shakespeare.

NORTHWESTERN

TH E PLACE OF DIRECT
MAIL ADVERTISING
No m a tte r w hat o th er m edia of adver­
tising are used, direct m ail will always
have a definite place on the b an k ’s adver­
tising ap p ropriation, P aul T. Cherington,
d irector of research fo r the J. W alter

N ational Bank o f Commerce
in New York
E sta b lish ed 1839

STATEM ENT OF CONDITION, JUNE 30, 1926
RESO U RCES

L IA B IL IT IE S

Loans and Discounts $322,984,561.38 j C ap ital Paid u p .......$25,000,000.00
O verdrafts, secured
and unsecured . . . .
70,160.40 S u r p lu s ....................... 35,000,000.00
U nited States Secur­
U n d ivid ed P r o fits... 6,942,978.69
ities .........................
61.028,216.99
D i v i d e n d payable
O ther Bonds and Se­
14,535,190.07
curities ...................
J u ly 1, 1926.......... 1,000,000.00
Stock of Federal Re­
15,769.50
serve B an k .............
1,800,000.00 Dividends unpaid . . .
Banking H o u s e ........
4,000.000.00
Deposits ..................... 515,005,640.27
Cash in V ault and
due from Federal
R eserved for In te r­
Reserve B ank........
68,326,181.26
est, T axes a n d
Due from Banks and
other P u rp o ses. . . .
6,716,197.06
8.312.874.86
Bankers .................
Exchanges for C lear­
Unearned D iscount. .
1.081.175.20
ing House ............. 123,914.071.98
Checks and other
Acceptances executed
Cash Items ..........
2,859,686.31
for Custom ers . . .
23.126,533.32
Interest A ccrued.......
1.527,353.12
Acceptances sold with
Custom ers’ Liability
our E ndorsem ent..
under Acceptances. 22,043,370.39
17,513,372.72
$631,401,666.76
C H A IR M A N

$631,401,666.76

O F THE BOARD

P R E S ID E N T

JA M E S S. A L E X A N D E R

S T E V E N S O N E. W A R D
V IC E -P R E S ID E N T S

ROY H . PASSM O RE
E U G E N E M . P R E N T IC E

J. H O W A R D A R D R E Y
T H O M A S W . BOW ERS
E M A N U E L C. GERSTEN

SECOND

E V E R E T T E. R IS LE Y
FARIS R. R U S S E LL
H E N R Y C. S T E V E N S

V IC E -P R E S ID E N T S

JO H N J. K E E N A N
E D W A R D H . R A W LS

HARRY A. REED
JO H N T . W A L K E R , JR .

C A S H IE R

AUDITOR

J U L IU S PAU L

P A U L B. H O L M E S

F O R E IG N

SECOND

H A R R Y P. B A R R A N D
JO S E P H A. B R O D E R IC K

M EYER

TR U ST D EPA RTM EN T
A S S IS T A N T TR U S T O F F IC E R S

'B E V E R L E Y D U E R
M E L V IL L E W . T E R R Y -

SC U LLY
D IR EC T O R S


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Federal Reserve Bank of St. Louis

Thompson com pany, believes. Speaking
on this point a t the F. A. A. convention
he d ec la re d :
“ The personal income tax lists were a
godsend to the financial houses which
use mail pieces, o r as they are commonly
called, “direct m ail” advertising. These
lists made it possible to develop graded
m ailing lists based on income. Any ad ­
v ertising financial house which did not
tak e advantage of the publicity given
these re tu rn s to compile good lists was
asleep a t the switch.
“A short tim e ago I heard a direct
mail expert tell how he sold pleasure
yachts to bankers by means of circular
m atter. My comment is th a t eith er the
bankers are a p a rtic u la rly credulous lot
of yacht buyers, or else the m ailing pieces
were much b e tte r p rep ared th an most of
those I get from bankers. Dull in ap ­
pearance, secretive and disingenuous in
content, wholly lacking in every v irtu e
(including the b an k er’s cherished “dig­
n ity ” ), it seems incredible th a t most of
them could influence anybody to buy any­
thing, invest anything, sell anything, give
anything, or even w rite fo r anything.
Once in a long while one ru n s across a
really w ell-prepared piece of financial
direct m ail m atter. B ut a g rea t m any of
them look as if they had been prepared
by the presid en t of the bank himself.
The p rep a ra tio n of such m a tte r is an ex­
p ert task fo r the best of specialists. And
w ithout any reflection on the ab ility of
bank presidents in th e ir own field it
seems h ard fo r some of them to realize
th a t it is ju s t as rare to find a bank p resi­
dent who is a good w rite r of direct mail
m a tte r as it is to find a good direct m ail
w riter who is a good bank president.
“One of the virtu es of direct m ail ad ­
v ertising is its adaptiveness. If a house
finds by experim ent a group of two or
three hundred people fo r example, who
respond most read ily to the tu rg id re ti­
cences of the p resid e n t’s style they can
be fed w ith th a t while the rest of the
list is given more persuasive treatm en t.
At com paratively little ex tra cost, when
lists are not very long, it is possible to
adopt the appeal to the various p a rts of
the m ark et it is designed to reach.
“W h atev er other medium proves to be
useful in financial advertising, direct
mail alw ays will have its place.

V IC E -P R E S ID E N T

FRANZ

V IC E -P R E S ID E N T
AN D T R U S T O F FIC E R

JAM ES S. A LEXA ND ER
J O H N W . D A V IS
H E N R Y W . de F O R E S T
JO HN T . D O R R A N C E
E D W A R D D . D U F F IE L D

October, 1926

DEPA RTM EN T

V IC E -P R E S ID E N T S

C . A LIS O N

BANKER

C H A R L E S E. D U N L A P
A N G U S D. M C D O N A LD
GE O R G E E. R O O S E V E L T
C H A R LES B. SEGER
JO H N G. S H E D D

V A L E N T IN E P . S N Y D E R
H A R R Y B. TH A YER
J A M E S T IM P S O N
S T E V E N S O N E. W A R D
T H O M A S W IL L IA M S

In Larger Offices
The M ilwaukee office of the F irs t Illi­
nois Company, u n d erw riters and p a rtic i­
p atin g d istrib u to rs of investm ent securi­
ties, has been moved into larg er q uarters,
room 804, F irs t W isconsin N ational Bank
Building, from room 1422 in the same
building. The com pany was founded in
1920, operates in the m idw estern states,
and has offices in M ilwaukee, Chicago,
St. Louis, A u ro ra and Springfield. Grinnell W ylie is the W isconsin manager.

October, 1926

TH E

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

WHAT THE NEW BUSINESS
DEPARTMENT DOES

SELECTING YOUR
ADVERTISING MEDIA

A ccording to Ju liu s C. P eter, vice
president of the D etroit T ru st com pany,
there is alm ost no end to the num ber of
services the new business d epartm ent of
a bank m ay render. Speaking on the
subject, “ The New Business D epartm ent
in P erspective,” he enum erated the fol­
lowing list of m iscellaneous jobs th a t
have been handed to the new business de­
p artm en t of his p a rtic u la r b a n k :

There is a definite rule fo r selecting ad­
vertising media, and it is this, according
to George Reed, vice president, Edwin
Bird Wilson, I n c .: “Reach the largest num ­
ber—of your best prospects—w ith the
most effective message—at the lowest
cost.”
Commenting on each of these four
points at the D etroit meeting Mr. Reed
said in p a r t :
“ F irs t— ‘Reach the largest num ber.’
“Mass P lan contemplates the placing of
an effective message in every home in a
city or in a district or in a n atu ral trade
te rrito ry of a bank.
“ Can this be done in any other way?
“Possibly by direct mail methods, if one
could in any conceivable way p rep are an

“A revised will filing system.
“Use of only one signature on checks.
“Offering additional services, such as
safekeeping of securities.
“ Changing the set-up of our financial
statem ent, by more or less freq u en t tra n s ­
fers from undivided profit to surplus account.
“E ncouraging suggestions
ployes.

from

accurate list of the names, one in each
home, and could devise a method to keep
this list even 75 p er cent correct—with
an average, in some sections, of 10 per
cent removals each May first and October
first, and the toll of death also to be reck­
oned with.
“In any mail follow up, corrections th at
one does receive will not as a rule come
prom ptly. This means a complete loss of
a certain percentage of more than one
m ailing and a lessening of effectiveness
in those th at do finally reach their desti­
nation through forwarding.
“ The second point in our form ula is—
‘Beach the best prospects.’
“Women are n atu rally more th rifty than
m en ; p articu larly is this true of m arried
women, the mothers in the home. Not
only are they endeavoring to see th a t the
fam ily gets ahead, but they are more in ­
clined to teach the children the importance

em­

“V arious investigations of possible
new services, and methods employed by
other tru s t companies.
“P lan fo r m onthly m eetings of all the
officers of the company.
“In addition to close touch with internal
affairs, it is obvious, of course, th a t in its
numerous daily contacts with outsiders the
departm ent has its finger on the public
pulse. I t knows how the bank or tru st
com pany is regarded, and it reports con­
structive criticisms. I t is in a position to
advise w ith respect to relations w ith
lawyers, insurance men, realtors and other
im portant bodies of business and profes­
sional men. I t is constantly endeavoring
to tu rn the knowledge thus acquired to
the advantage of the company. The de­
partm ent, in short, has a position of vant­
age in the crow’s nest, and has a bird’s-eye
view of the activities of the business, both
inside and out.
“In closing these somewhat random ob­
servations, let me try to take a brief look
into the future. I have tried to picture
the conditions th at gave rise to the new
business idea, and I have discussed some
of the policies and guiding ideas that our
experience has led us to use today. As
to the future, I believe that the new busi­
ness departm ent will play an increasingly
prom inent p a rt in banks and tru st com­
panies. Its place will be determined by
the im portance which the management a t­
taches to the continued growth of the in­
stitution. The departm ent will deal with
the extension of business, the improvement
of service, and the betterm ent of public
relations. A financial institution develop­
ing along these lines is bound to be a
success. These are the possibilities of the
new business departm ent. It is up to you
and to me to develop them.”

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Federal Reserve Bank of St. Louis

29

B A N K E R

The

Royal
Union
Life
Insurance
Company
DES MOINES
IOWA
We have an unex­
celled line of policy
contracts.

R oyal U nion L ife B uilding, Cor. 7th and Grand Avenue

Des Moines>Iowa

Our new Select Risk low-rate policy for business and professional
men is a fast seller.
Over fifty per cent of our policies are issued and in the mails
within twenty-four hours after the application papers reach the
Home Office.

Royal Union Life Insurance Company
A. C. TUCKER, President

Total Paid to Policyholders - - - Over $ 21,000,000.00
Insurance in Force as of Dec. 31, 1925
- $148,281,904.00

30

THE

NORTHWESTERN

Individual Attention
N o matter what your business,
there is someone in this organ­
ization qualified and ready to
give it his individual atten­
tion. Indeed, the personal
element has been a vital factor
in placing this institution fore­
most among Chicago banks

BANKER

October, 1926

of th rift. P robably the modern woman is
not as th rifty as her mother or her g ran d ­
mother, but nevertheless an examination
of your savings accounts will prove to you
th a t a very large percentage are in the
names of m arried women and a much
larger percentage are in the names of m ar­
ried and single women combined.
“ The Secretary of the Savings Bank
Association of New Y ork State has stated
th at a survey of savings accounts in New
Y ork State showed th at over 75 p er cent
of the savings accounts in the savings
banks were in the names of women.
“ The m arried woman’s place o f busi­
ness is in the home. There is where the
Mass P lan takes your message, direct to
the home and to the mothers in the home
— and it is our belief th at no other method
of advertising will reach this profitable
field of your best prospects fo r savings
accounts as thoroughly as will the Mass
Plan.
“W ith Mass P lan you can also concen­
trate your efforts w ithout waste on your
n atu ral trad e te rrito ry or on certain dis­
tricts which you may have found, from
an investigation of your savings accounts,
to be the most productive of business, or
on those which are least productive and
need cultivation. You can follow along
certain street car lines. You can mass
your distribution around a new branch.
Banks located in an outlying section of a
city which have a local problem can local­
ize their advertising and can make a com­
plete coverage of th eir p articu lar te rri­
tory— something th a t is impossible under
any other method, a t least w ithout tre ­
mendous waste or excessive cost.
*

Ike CONTINENTAL and
COMMERCIAL

BANKS
CHICAGO

Re s o u r c e s H a l f

a b il l io n —a n d

Mo re

*

%

“ Continuing our form ula, our third
point is— ‘W ith the most effective mes­
sage.’
“ The subject of copy or its mechanical
presentation is not a p a rt of this discus­
sion. Mass P lan has come to mean a
method of distribution, not a certain kind
of m aterial. However, a few general
statem ents will not be out of place in this
connection.
“To attract maximum attention, a Mass
P lan medium should carry no earm arks
of advertising. As soon as it is labeled
“advertising” it will lose a large percent­
age of readers and a still larger percent­
age of its retention value. One should aim
to present something a little unusual,
something p articu larly attractive to the
eye, which will interest the recipient and
which will also suggest retention for other
members of the fam ily to see. The selling
message, the copy, should be example
ra th e r than precept or preachm ent.
*

*

*

“ The fo u rth and last item in our fo r­
m ula is— ‘A t the lowest cost.’
“A ctual cost is not only the cost in dol­
lars b u t also the cost in time and effort.
“How are we to measure cost ? By
charging our expenses up to the new ac­
counts directly traceable to advertising?

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Federal Reserve Bank of St. Louis

October, 1926

THE

I f th at were the pro p er method, little sav­
ings advertising would be done by intelli­
gent people. B ut experience has taught
th at such a system of m easuring advertis­
ing values is unsound.
“N ew spapers and magazines base their
rates upon the num ber of copies placed in
the hands of the public and the best ad­
vertising brains in the world buy space
on the basis of so much p er reader, not of
so much p er dollar of direct return.
“ W hy then is th at not a sound method
of m easuring the cost o f savings adver­
tising ?
“You will agree, I believe, th a t there
are only two possible ways of reaching
every home in a city or in a district—
namely, by Mass P lan or by mail. Let
us com pare them as to cost.
“W hat would it cost to p rep are a list
fo r direct mail purposes which would
reach every home in your city or in any
certain section, to set up the machinery
and employ the help to do the addressing
and the mailing ? W hat would it cost to try
to keep this list even fairly accurate?
“A dd to this the cost of postage—1y 2
cent fo r every piece of literature if it is
to be sent out unsealed, 2 cents if it goes
out sealed. Include the cost of the en­
velopes.
By the tim e your message
reaches your prospect, ten cents will p ro b ­
ably be a low estimate of the cost.
“W hat does Mass P lan offer? I t offers
you the possibility of producing a piece
of literature and p u ttin g it into a home for
about the cost of the postage stam p, with
absolutely no work on the p a rt of your­
self or your institution.
“ This seems to cover the subject of com­
parative costs.”

WOMEN IN THE TRUST
FIELD
There is a broad field fo r women in the
tru st field, Miss N ora K irch, m anager of
the W om en’s D epartm ent of the Louisville
T rust company, of Louisville, declared at
the D etroit conference. She said:
“I t may seem strange to have a woman
talk on tru sts—a field still completely mo­
nopolized by men. B ut this is a day of
transition and change. The developed
woman of today is beginning to do her
own thinking. In the big scheme of life
she is in touch with the fuller life of men
and women. She is interested in solving
the problem s of youth—those who are to
carry on ‘O ur Tomorrow.’ W e are get­
ting away from the faults of our tra in ­
ing—we are thinking, feeling, growing,
ready in a more com petent way to give
something w orth while in p artnership with
men in business.
“ The Shuttle of Life and D eath works
constantly. T rusts—like D eath and the
U ndertaker, are ‘stiff’ subjects and have
come to .stay. F o r the same reason, the
insurance field is a perm anent one. The
value of the la tte r has reached the great

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

mass of people through advertising me­
diums, solicitors and superior organiza­
tion work. Insurance protection has be­
come universal. The value o f the T rust
field is ju st beginning to be understood
by the average individual. T hat an aw ak­
ening is coming is evidenced by the n u ­
merous T rust D epartm ents opened by
banks throughout the country. I t has al­
ways seemed to me th a t advertisements
making a more human appeal are needed
before tru st functions will be more clearly
understood.
A dvertisem ents fo r T rust
business, like wills, are too technically
w ritten. They are not understood by the
average person—a criticism often made
by testators.
“A real T rust officer, like a real teacher,
is born. I know a num ber of men who
are well versed in the technique of tru sts
who lack human warm th. This m ust be
genuine, not feigned, if one is to gain
the confidence of people to a degree to get
them to confide in them th eir fam ily se­
crets.
This is w hat will-making and
Trusts involve. Only the highest type of
people should be selected fo r T rust work.
A real T ru st officer, be it man or woman,
should have a strain of altruism in their
make-up. They have the boy and girl
problems to deal w ith in every walk of
life; the derelicts of all degrees; invalids;
old age problem s; non compos mentis
types as well as norm al persons. Compe­
tition is getting keener, and those who
wish to succeed would do well to begin to
train suitable types of women as T rust
officers as well as men. T hat women are
a success as “contact officers” is demon­
strated all over the country by the work
done in W om en’s D epartm ents, headed by
women. They are infusing a hum an ele­
ment in Banking and T rust work. By
fam iliarizing customers w ith the service of
all departm ents—a kind of combination
service—they sell good will, give people a
better understanding of business methods,
which brings new business. W e get what
we give.”
(C ontinued on page 96)
Buys Bank Interest
J. I. C hristansen has recently p u r­
chased an in te rest in the Seven V alleys
bank of Callaway, Nebraska, and has
taken active charge of the in stitu tio n .
Mr. C hristiansen has been associated
w ith b anking in te rests in N ebraska fo r
a num ber of years, fo r the p ast nine
years as cashier of the F irs t S tate bank
of E nders. There will be no other change
in the personell of the bank fo r the p res­
ent.

31

The R oad to
F in a n cia l
In d ep en d en ce
is open to every man
and woman in a gainful
occupation in these
four investment com­
mandments :
1. M a k e regular
additions to sav­
ings accounts.
2. Buy life insur­
ance.
3. Own a home.
4. Buy sound se­
curities.
This simple program
is a practical way to
get ahead, to accumu­
late a comfortable in­
come, or even a for­
tune.
Our booklet, “The
Business of Buying a
Bond,” will help you
along the road to finan­
cial independence. Ask
for booklet N-106.
You incur no obliga­
tion.
First Illinois Company
BONDS FOR INVESTMENT '

President Dies
George W . L ittle, 65, p resid en t of the
F irs t N atio n al bank of Lyons, N ebraska,
fo r th e p ast fifte e n years, died recently
of h e a rt failu re. M r. L ittle had been a
resid en t of N ebraska fo r f ifty years, and
th irty years p ast he had lived a t Lyons.

208 S. La Salle, Chicago
M ilwaukee

St. Louis
Aurora

THE

32

NORTHWESTERN

October, 1926

BANKER

Personal Paragraphs

A Specialized
Service

A t the reg u lar m onthly m eeting of the
board of directors of the G uardian N a­
tional B ank of Chicago, held Septem ber
14th, Edward N. Heinz, form erly as­
sistan t cashier, was elected vice p resi­
dent. A. L. Rogers, form erly assistan t
cashier, was elected cashier. E. E. Rose,
who held the position of vice president
and cashier, still rem ains as senior vice
president. The G uardian N ational Bank
of Chicago was organized Ja n u a ry 2,
1925, and since then has shown a steady
and conservative growth.
— $—

for Banks and Bankers
which is the result of more
than sixty years of experi­
ence is offered by

THE FIRST
NATIONAL
B A N K OF
CHI CAGO
and

THE FIRST
TRUST and
SAVINGS
BANK
Complete facilities are pro­
vided for active and inac­
tive accounts, collections,
bills of lading, investments
and foreign e x c h a n g e
, transactions
FR A N K O. W ETMOKE, Chairman
M EL V IN A. TRAYLOR, President

The financial division of the In d u strial
A cceptance C orporation of New Y ork
has opened a branch office in the F irs t
N ational Soo Line Building, M inneapolis,
in charge of S. H. Petterson.
The In d u stria l A cceptance Corporation
is engaged exclusively in financing
S tudebaker dealers throughout the coun­
try.
The corporation has also opened offices
in St. Louis, M issouri, and Dallas, Texas.
—$—
B oard of D irectors of The N ational
Bank of the Republic have elected Robert
R. Mentz assista n t vice president of the
bank. Mr. M entz has been associated
w ith the bank fo r a considerable num ber
of years and is in charge of the credit de­
partm ent. H e has been active in the
affairs of the R obert M orris A ssociation
and the Chicago A ssociation of Credit
Men and is looked upon as one of the
forem ost bank credit men in this p a rt of
the country.

J. Edward Maass, vice president of the
Illinois-M erchants T ru st Co. of Chicago,
has been on a to u r of Europe, retu rn in g
to A m erica O ctober first.
John J. Mitchell, presid en t of the Illi­
nois M erchants T ru st Co. of Chicago, who
has been convalescing a t his country
home on Lake Geneva, has retu rn ed to
his desk.
— $—
W alter T. Fisher has been elected p resi­
dent of the A m algam ated T ru st & Sav­
ings B ank of Chicago, a labor bank oper­
ated by the A m algam ated Clothing W ork­
ers of Am erica. Mr. F ish er is the son of
W alter L. F isher, who was secretary of
the in te rio r u n d er P resid en t T aft.
— $—

John C. Smith, of M andan, N orth D a­
kota, has been appointed a m em ber of the
board of directors of the St. P au l F ed eral
Land B ank, to fill th e vacancy thi’ough
the recent resignation of P au l A. P reus,
as treasu rer. The appointm ent of Mr.
Sm ith gives N orth D akota two rep resen ­
tativ es on the board, Samuel Torkerson,
G rand F orks, being the o th er member.
—

$ —

Ralph C. Lawrence, in charge of bond
exam ination in the sta te au d ito r’s office,
Lincoln, N ebraska, has draw n up recom­
m endations fo r a u niform bond law,
which will be presented to the coming
session of the sta te legislature. The
recom m endations ask fo r elim ination of
all existing sta tu te s reg u latin g issues, and
the su b stitu tio n of a general law elim inat-

Our S u ccessfu l
R ecord
During the long period of years since its founding, no
investor who has purchased, through the American
Bond & Mortgage Company, First Mortgages or First
Mortgage Bonds secured by improved city properties,
has lost one dollar of either principal or interest. This
long period of faithful investment service comprises
“Our Successful Record.”
Send for latest circular.

AmericanBond &MortgageCa

litablishtd 1904

Combined Resources
Exceed S400,000,000

IOWA
OFFICES:
C H IC A G O


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Federal Reserve Bank of St. Louis

C A P IT A L A N D S U R P L U S O V E R S 8 .U U U .U O O

O ver 35

D A V ENPORT
D E S M OINES
CEDAR R A P ID S
other cities.

NEW YORK

October, 1926

THE

i ng from the definition of “n e t indebted­
ness” sinking funds and special assess­
m ent bonds, together w ith m arket regu­
lation.
—$—
Thomas C. Schaack, of H arris, W inthrop & Co., recently retu rn ed to Chicago
from a pleasant vacation a t Green Lake,
Wisconsin.
$—
Louis M. M ielenz, of Omaha, has been
appointed m anager of the credit d ep a rt­
m ent of the Cosmopolitan S tate Bank,
Chicago, to fill the vacancy through the
resignation of E dw ard M. W arner. Mr.
M ielenz is well known in Chicago bank­
ing circles, having served fo r the past
eight years as vice president of the Union
S tate Bank of Omaha.
—$—
W illiam H ow ard B ell has been ap ­
pointed m anager of the new office of G.
L. O hrstrom & Co., New York, recently
opened in the M cK night building, M inne­
apolis. Mr. Bell was form erly associated
with the bond departm ent of the M ar­
quette T ru st Co., of M inneapolis.
—$—
L. E. F ischer, general m anager of the
Illinois T raction System , has been elected
president and general m anager of the
Illinois Pow er and L ight Co., succeeding
W illiam A. B aehr. Clement Studebaker,
-Jr., president of the com pany, announces
the retirem ent of S cott Brow n as vice
president and secretary and P. C. Dings
as treasu rer. D w ight Holmes has been
elected secretary of the com pany and F.
L. Sm ith is the successor to Mr. Brown
as secretary. The changes in personnel
are m ade follow ing acquisition of control
o f the com pany through purchase of the
N orth A m erican L ight and Pow er Co., the
holding company, by the M iddle W est
U tilities and N orth A m erican Companies.
Jay Dunne, head of the economic re ­
search departm ent of A. G. Becker & Co.,
Chicago, has ju st retu rn ed from nine
m onths’ study of in d u stria l conditions in
Germany. Mr. D unne sta te s th a t Ger­
many has a trem endous in terest in A m er­
ican productions m ethods, and a vigorous
effort is being made to adopt them to
G erm an needs.
—$—
J. F. Ebersole, assista n t federal reserve
agent of the M inneapolis F ederal Reserve
Bank, in an address m ade recently before
the Lions Club, stated th a t the redis­
counting system used by federal reserve
banks has alm ost elim inated seasonal
credit variatio n s and is the m ost im por­
tan t fe a tu re of th e ir service.

—$—

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

B A N K E R

J a y E. Markle, vice president and cash­
ier of the B ank of Commerce and Sav­
ings, D uluth, spent his vacation in H ot
Springs, South D akota, where he a t­
tended th e F o u rth B iennial Boy Scout
Conference.
—$—
M ike Holm, M innesota S ecretary of
State, and J . G rant H inkle, S ecretary of
S tate fo r W ashington, together atten d ed
the annual m eeting of the N ational A sso­
ciation of S ecretaries of S tate, held in
Providence, Rhode Island.
—
•
Joseph A. Boyer has been appointed
m anager of the A. B. Leach & Co. offices
in M inneapolis. F o r the p ast five years

33

Mr. Boyer has been associated w ith the
bond departm ent of Paine, W ebber & Co.,
in M inneapolis.
W ith A m erican State

Raym ond Converse, form erly asso­
ciated w ith the F irs t N ational bank of
Akron, Colorado, has recently tak en a
position w ith the A m erican S tate bank
of S utherland, N ebraska.
Becom es Bank E xam iner

F. A. Jones, form erly cashier of the
R uskin S tate bank of Ruskin, N ebraska,
has accepted a position w ith the S tate
of Iow a as a bank exam iner.

THE
FOREM AN
BANKS
FOUNDED

1862

We seek your business on the basis of
the service we can render you. A service
we have perfected through 64 years
of consistent growth.
When Chicago
was an outpost of eastern comm erce—
the transcontinental railroad, an ideal­
is t’s dream—we were doing business
here.
Today our representatives will
serve you in more than 1 0 0 countries.

The Foreman National Bank
The Foreman Trust and Savings Bank
La S alle an d W a sh in g to n S ts.
C hicago

Combined Capital, Surplus and Undivided Profits exceed

Jam es S. A lexander, chairm an of the

Board of the N ational B ank of Com­
merce, New York, is now in Europe,
where he will atten d the m eeting of the
Com m ittee on In te rn a tio n a l Paym ents
to be held in Rome.

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

$ 1 0 ,0 0 0 , 0 0 0

THE

34

NORTHWESTERN

BANKER

October, 1926

S ID E L IG H T S OF T H E F . A . A.
C O N V E N T IO N

(C ontinued fro m page 23)

Pa ra ph ra sed P ro verbs

A C ollection Service Chain
Is N o Q u ick er T h an Its
Slow est L ink

The la tte r is not only adept a t financial
ad v ertisin g b u t clearly dem onstrated his
C harlestonian ab ility on the stage of the
Bonstelle T heater.
D. R. W essling, banker, L ytton, Iowa,
who is p resid en t of W essling Services, is
a reg u lar v isito r a t these annual conven­
tions. H e is quietly g ath erin g ideas to
im prove W essling Services fo r Banks, if
th a t is possible.
N E W S A N D V IE W S

(C ontinued from page 18)
■

T h e elim ination of avoidable
delays in the handling of outof-tow n collection item s is a
feature of our service. T h is
is the result of—
Direct routing to place of pay­
m ent.
C o n tin u o u s n ig h t -a n d - d a y
operation.
Liberal use of telephone and
telegraph inquiries and advices.
Close official supervision.

W e can save from one to
three days’ tim e in th e col­
lection of y o u r business.
All item s received at par.

THE
P H IL A D E L P H IA -G IR A R D
N A T IO N A L BANK
PHILADELPHIA, PA.
Capital, Surplus and Profits—.$27,900,000

The C ontinental and Commercial Bank
o f Chicago organized some two years ago
a service statio n designed to aid its

frien d s and p atro n s in “personal financial
organization and economical home m an­
agem ent.”
To date the sta tio n has
helped some 6,728 fam ilies, the annual
incomes of these fam ilies ranging from
$ 1,100 (the wages of a widow) to $60,000.
In every case the statio n found the fu n d ­
am ental trouble was the same— inability
to use money to the best advantage. The
m an w ith th e $60,000 income was p re ­
sented w ith a financial plan w hich en­
abled him to save $18,700 the first y ear
he p u t it into operation, and the widow
w ith $ 1,100 income was able to “get by.”
A good m any people don’t g et along
solely because they lack financial tr a in ­
ing as a basis and don’t have any source
of sane financial advice. W hen a $1,500
store clerk depends on the team ster nex t
door to tell him how to make the m ost of
his salary he is not likely to get fa r.
Some day, it is safe to predict, a t least
one bank in every city will fu rn ish th is
so rt of service.
W holly tax-exem p t securities, accord­
ing to the trea su ry D ep artm en t estim ate ,
am ounted to $15,199,000,000 on Ju n e 30,
1926, rep resen tin g a gain of $110,000,000
in Ju n e. I t is well to keep in touch w ith
the grow th of these figures, because we
should pass a law p rev en tin g th e fu rth e r
issuing of tax-exem pt bonds.
F oreign trade w ill not be the cause o f
any depression in 1926. I f trouble should

come it would be because of conditions
a t home, b u t fa c ts as to trad e, m anufac­
tu re, money and cred it give adequate
grounds fo r expecting business to be
good the rem ain d er of th is year. P ro s­
p erity is w ith us and th o u g h t of the m or­
row, carefu l planning, w atchful m anage­
m ent and tem pered optim ism w ill con­
tinue the period of active, profitable
business.
The convention com m ittee in the city
of D allas m akes th is in te restin g descrip­
tion of the sta te and city, locating the


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Federal Reserve Bank of St. Louis

October, 1926

THE

sta te as fo llo w s: “ Texas occupies all the
continent of N orth A m erica, except a
sm all p a rt set aside fo r the U nited S tates
and Canada. Texas is so big th a t the
people of B row nsville call the D allas peo­
ple Yankees, and the citizens of El Paso
sneer a t the citizens of T exarkana as be­
ing snobs of the effete E ast. I t is 150
miles fu rth e r from E l Paso to T exarkana
th an it is from Chicago to New Y ork;
Dallas is n ea rer to St. P aul, M inn., th a n
it is to Brow nsville. The U nited S tates
w ith Texas le ft out would look like a
three-legged Boston te rrie r. The chief
occupation of the people of Texas is tr y ­
ing to keep from m aking all of the money
in th e world. Chief p u rsu it of the Tex­
ans was form erly M exicans, but now it is
land buyers, steers and Texas crop rec­
ords.”
One of our Scotch banker friends was
polishing his car the other evening when
a m an happened by who inquired how he
liked his car, sta tin g th a t he was consid­
ering buying one of the sam e make. In
the course of conversation our frie n d
sta te d th a t the “pick-up” was especially
good, owing, no doubt, to the fa c t th a t
the car had eight cylinders. ‘Oh, six
cylinders are b e tte r th a n eight,” said the
man, “because if anything goes wrong
w ith the cylinders you haven’t so m any
to re p a ir.” No doubt if th a t fellow ’s
engine was “m issing” he would re tu rn
to his garage to see if he had le ft it there.

Southern w holesalers who are advising
custom ers th a t checks on F lo rid a banks
will not be accepted by them are in tro ­
ducing a new form of killing the goose
th a t laid the golden egg. Such action
does a g rea t injustice to the strong, safe,
conservative banks of F lorida. In the
second place, it has a tendency to in still
fe a r of all banks in the public mind, and
fe a r is not an ally of business. W hen
any business m an does som ething to
shake confidence in business in stitu tio n s
he is pulling down the pillars of the en­
tire business stru ctu re— and on his own
head.
A well-known president o f a w ellk now n b a n k in th e m id d le Avest is a n
a r d e n t d iscip le o f Iz a a k W a lto n . W h en
he w en t on h is v a c a tio n th is y e a r he
p ro m ised to sen d to th e o th e r officers of
th e b an k tro p h ie s o f h is hook a n d line.
H e w as as good as h is w o rd a n d sh o rtly
b e fo re h is r e tu r n a box o f p ik e a rriv e d ,
w hich Avere d u ly d is trib u te d .
HoAvever, before the p resident retu rn ed
a bill came to him a t the bank w hich the
vice president thought pertain ed to busi­
ness b u t which disclosed th a t a local
butcher was entitled to $7.50 fo r fourteen
pike and one pickerel. C onsternation
reigned—had th e ir idol feet of clay—had
his hand lost its cunning? However,
someone thought the bill looked “fishy”

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Federal Reserve Bank of St. Louis

NORTHWESTERN

35

BANKER

SIGN here when buying
cheques at your bank

COUNTER SIG N here in
presence of person accepting

Here
write
name

of
person
who
cashes
it

Outside of the United States this cheque is payable at
the current buying rate for bankers’ checks on N ew York

Grateful Customers
A cu sto m er w h o
your bank

rem em bers

g ra te fu lly w h ile

a w a y from hom e on a t r i p is
lik e ly to rem e m b e r y o u r b a n k
a g a in w h e n h e re tu rn s .
C u sto m ers of yours, su p p lie d
b y y o u w i t h A B A T ra v e le rs ’
C heq u es for tr a v e l purposes,
w ill c a rry a c o n s ta n t re m in d e r
o f y o u r good counsel a n d y o u r
t h o u g h t f u l p r o v i s i o n fo r a
p le a s a n t tr ip .

Like the Magic Car­
pet, A B A Travel­
ers’ Cheques will
take you wherever
you want to go.

W rite us for literature
and further information.

T h e A g e n t for the M em ber B an ks for the p a y m e n t o f a ll
A m e r ic a n B A N K E R S A sso cia tio n T ra v e le rs’ C heques is

Bankers T r u st C om pany
N E W YORK

PARIS

LONDON

36

THE

NORTHWESTERN

BANKER

October, 1926

and m ade investigation. Clues were fo l­
lowed and the cashier cu lp rit pleaded
th a t it was all a joke. The president on
his a rriv a l home was greeted w ith cheers
of “F ish, fre sh fish /’

W ith o u t a P e e r

A n in terestin g experim ent is beingtried in the M aryland p en iten tiary at
Baltim ore. A bank is to be opened there
fo r the sole purpose of handling the sav­
ings of the prisoners. I t is said these
range betw een $200,000 and $300,000 a n ­
nually. A t first glance it would seem an
easy m a tte r to get plen ty of home ta len t
to operate the bank, though the difficulty
in finding honest bankers am ong th e con­
victs would be a problem in itself. P re ­
sumably, therefore, the bank will be con­
ducted by outside financiers ra th e r than
those who find them selves inside walls
through th e ir own peculiar m ethods of
handling o th er people’s money.
I t is no sm all wonder the pedestrian is
p itied. On Ja n u a ry 1, 1926, the num ber

O W E R IN G in to th e a ir, th e e le p h a n t
is m o n a rc h o f h is A fr ic a n w o rld .
H is m a s te ry is d u e n o t to h is size
alo n e . I t is d u e as w e ll to h is r e ­
m a r k a b le a d a p tiv ity to th e la n d o v e r w h ic h
h e ro a m s. E v e ry sen se is a c u te . E v e ry o r­
g a n is a le r t. E v e ry a c tiv ity is in h a rm o n y
w ith th e m o m e n t’s n e e d .
1

So w ith W e sslin g S erv ices. F ro m c o a st
to c o a st th e y a r e ta k in g th e le a d a m o n g p e r ­
so n a l b a n k p u b lic ity p ro g ra m s . W e sslin g
S erv ice s su c c e e d n o t b y m e re b ig n ess. T h e y
su c c e e d b e c a u s e th e y a re u n iq u e ly se n sitiv e
to lo cal n ee d s.

of m otor cars in operatio n throughout
the w orld to taled 24,589,249— or one fo r
every seventy-one persons.
The U nited S tates has the highest ratio
of cars to population, w ith one to every
six persons. H aw aii is next w ith one car
to every eleven people. C anada is th ird
w ith one ca r to every th irte en people.
Brookm ire s a y s : “Iow a is in better
shape than any other part o f the corn
belt. F a rm income in Iow a fo r th e crop
y ear 1925-6 was a considerable im prove­
m ent over th e previous year, and our
estim ate fo r 1926-7 shows a fu rth e r gain
of $12,000,000.” A nd still B rookhart
raves o n !
Johnny, ten years old, applied fo r a
job as a messenger. The banker, to have
his little joke, said. “W ell, my boy, w hat
would you do w .th a m illion dollars?”

S im p le, sin c e re , a d a p ta b le , th e W e sslin g
p ro g r a m b rin g s tr a c e a b le re s u lts w h ic h
sh o w on th e b a n k ’s b a la n c e sh e e t.

F R O

M

IO W

D.R.WESSLING. PRESIDENT

A

A

T

L Y

T T O

N

A.RWOLF VICE PRESI DENT

Planners and Creators o f OriginalBank Services
Bank A rt-Window and L obby D isplays -C lassified Programs


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Federal Reserve Bank of St. Louis

“Oh, gee,” replied Johnny, “I don’t know
-— I w asn’t expecting so much money at
the s t a r t !”
Theodore W old, vice presid en t and a
newly elected m ember of the board of d i­
recto rs of the N orthw estern N ational
Bank of M inneapolis, has recently been
appointed chairm an fo r M innesota of the
Save to T ravel A ssociation. This asso­
ciation is made up of banks, railroad
companies and steam ship com panies to
encourage trav el and vacation through
system atic savings accounts.
In analyzing the relations o f Europe
w ith A m erica, reg ard in g the settlem ent

of w ar debts, Dr. Bonn, in an interview
w ith the New Y ork Times, states th a t the
m ain cause is an uneasy m isgiving over
the possibility th a t E urope m ay be con­
fro n ted w ith an economic development
which m ust lead irresistib ly to a hopeless
dependence of th e debtor countries upon
the g rea t creditor, unable to ever get out

October, 1926

THE

of debt and bound thus in an economic
slavery hopeless of freedom . May we be
so bold as to ask w hat E urope would have
done in h er hour of need if the U nited
S tates had NOT loaned her the money
she now thinks she should not repay?
N A T IO N A L B A N K E R S SA Y L A W IS
COM PLETE F A IL U R E

NORTHWESTERN

37

BANKER

Coming Out
This

(C ontinued from page 17)
borrowers into bankruptcy, or m ake them
turn th eir property over to their creditors.
‘ ‘ Our gu aran ty law has been am ended
several tim es, and now the N ebrask a B a n k ­
ers A ssociation , through its e x ecu tiv e com ­
m ittee, w an ts the sta te bankers to organize
and appoint a com m ittee to te ll them w hat
else to do about it.
“ ‘ 3. W ould you ad vise other w estern
sta te s to adopt a sim ilar la w ”
‘ ‘ No. A law th a t is w rong in principle
cannot stand. In the end the public m ust
‘p ay the fr e ig h t.’ To quote a financial
a rticle published by the Chicago Journal of
Commerce in A u gust 2, 1922, in regard to
the G uaranty L aw : ‘ W e m ust not build
statu es o f snow, and w eep to see them
m elt. ’
“ ‘ 4. H ow has the G uaranty L aw affected
your bank and your com m u n ity?’
‘ ‘ The sta te banks have experienced the
w rong o f th is law , but the m ost o f them
are afraid to urge its repeal. An am end­
m ent, p erm ittin g banks to w ithdraw , would
mean, lik e it has in K ansas, the com plete
failu re o f the plan. ’ ’

Month !
Second

1926
Edition

FIN E IN TH EO RY BUT BAD
IN PRA CTICE
“ This is w ith ou t prejudice. Cold fa c ts
as I see them . Could w rite a book on
banks from m y experien ce as exam iner a
fe w years ago. H ave seen a lot o f insid e
stuff as handled by a bunch o f ‘k id s ’, called
‘ exam iners. ’
“ 1. Bunk. F in e theory but in m y e s ti­
m ation it is not practical. Spend more
m oney on good exam iners, charter less
banks and in th a t w ay m ake sa fe ty for
depositors.
“ 2. A fe w more m eager crop years and
we w ill go same route O klahom a did. The
sta te banks o f N ebrask a have m ortgaged
their entire profits for years to come.
“ 3. W ould not so advise. I t has proven
a failu re in every sta te so far, 1921 bank
fa ilu res in eigh t states, four o f w h ich have
guarantee law s. South D ak ota w ill repeal
theirs. N orth D ak ota is on verge. O kla­
homa has repudiated her lia b ility as a state
and r ig h tfu lly so, lea v in g only a handful
of sta te banks le ft to pay m illions deficit.
We judge from actual results. W hy should
it be recom m ended? Can su ggest no fo r ­
mula or changes th at would sp ecifically
c la s sify m oney p rotection or guarantee
more than an y property o f value— the
theory is wrong.
“ 4. I t has put to sleep and allayed the
fears o f some depositors, therefore, it has
done some good, tem porarily, but th at does
not change fa cts. In hard tim es the system
is foun d w a n tin g w hen carried over a long
period o f tim e, and in tim es o f ease, it is
not needed.
“ S u b stitu te for G uarantee L aw :
Get
good men on exam ining force, pay them
real money for their work. Cut down ex­
pen sive m ethod o f G uaranty fun d com m is­
sion and say th is to field men who are cap­
able o f a ctin g as ad visory personnel as


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

Accurate
and
Complete
HE Second 1926 Edition of the IOWA BANK DIRECTORY.
¿“V pocket size, will be off the press this month—thoroughly revised
accurate, and up-to-date. Five thousand five hundred copies
reach the desks of Iowa bankers each year, and they tell us the
DIRECTORY is the handiest reference ever placed in their hands.
^/

In addition to an up-to-the-minute listing of every bank in Iowa, the
DIRECTORY contains the following information:
The officers of the Iowa Bankers Association.
The officers of the G roup A ssociations of the Iowa Bank­
ers A ssociation.
The officers of the A m erican Bankers A ssociation.
The officers of the County Bankers A ssociation.
The officers and directors of the Seventh Federal R eserve
D istrict.
The State and N ational Bank examiners.
A brief sum m ary of the banking and com m ercial laws of
Iowa.
The m em bers of the Iow a Farm M ortgage Association.

The demand for the new Iowa Bank Directory w ill be
great. Place your order now, and be sure of receiving
your copy promptly.

T h e I o w a B a n k D ir e c to r y
P u blish ed Sem i-A nnually by

THE NORTHWESTERN BANKER
C lifford D eP uy, P ublisher

DES MOINES, IOWA

38

TH E

NORTHWESTERN

BANKER

October, 1926

well as exam iners. Cut loaning lim it to
10 per cent of cap ital an d surplus instead
of 20 per cent. M ake every sta te bank a
m em ber of F ed eral R eserve System. All of
th is will help to cure th e ir ills. ’ ’

b

a

n

k

f i x

t u

r e

h

e

a

d

q

u

a

r

t

e

r

C?/)ar/es (P ity,

A

s

a

B

a

n

k

e

r

As a banker you are interested in the efficiency of or­
ganizations. Whether an organization can demand your
consideration depends entirely upon its ability to effi­
ciently gather facts about the thing in which you are in­
terested.
Probably you are considering a new bank or fixtures.
If you aren’t now, it is inevitable you will some day.
Now, in the installation of fixtures, you would select an
organization with years of experience in designing, build­
ing and installing bank interiors.
You would be interested naturally in the cost of the
project also.
In the efficiency of designing, building and installing
and yet making it at a reasonable cost, The Fisher Com­
pany has pleased hundreds of banks and bankers through­
out the United States.

Thoughtful Bankers Consult the Fisher Co.

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

FINE LAW FOR THE
INEFFICIENT BANKER
“ From a n a tio n a l b a n k er who seriously
considered ta k in g out a sta te ch arter sev­
eral years ago b u t is m ighty happy th a t his
decision w as ag ain st it, fo r his stockholders
have never m issed a dividend since th a t
tim e, w hile his sta te b an k frien d s have
never received an y and several have paid
assessm ents instead.
‘ ‘ 1. The principle of a g u arantee law is
all rig h t and fo r th e inefficient and crooked
banker it is c ertain ly tine, for all he has to
do is to hang a sign in his window, ‘ De­
posits G u a ra n te e d ’ and he is ready to do
business— b u t fo r th e honest, able banker
who gets his business on account of his
a b ility and his experience, he has to pay
for th e errors and crookedness of the other
fellow, ju s t because he happens to be en­
gaged in th e same line of business, and to
him it is p ra c tic a lly a confiscation of p rop­
erty.
“ 2. U ndoubtedly it will come to an end,
ju s t as soon as th ey can let go and about
n in ety per cent would like to quit right
now and save a little money for th em ­
selves.
“ 3. No indeed, not a sim ilar law, b u t if
you can place th e cost of the guarantee
w here it should be, th en I th in k it a good
measure. W here should it be? To be paid
by th e sta te by assessing capital, and then
pass a law to h an g crooks.
‘ ‘4. I t has not affected us very much.
Some few depositors have been a ttra c te d
by th e sign (Tim e C ertificates draw ing in ­
te re st) and th e sm all depositor whose b al­
ance runs ab o u t $4.95 is anxious to have it
in a g u aran teed bank, b u t th e people op­
e ra tin g th e b an k Avere inexperienced so
th a t th e m an who really w anted to do
business w ith b an k ers d id n ’t hang around
th e sign v ery long. ’ ’
A d d ition al Office Space

H alsey, S tu a rt & Com pany have leased
3,000 square fe e t additional on the fifth
floor o f The Rookery fo r housing the ac­
counting departm ent, leaving the th ird
floor to correspondence and advertising
departm ents and th e first and second
floors of th e building to sales and custom ­
ers’ departm ents. The company now oc­
cupies 25,000 feet of floor space in the
building.
A m erican T ourists in Europe

Officials estim ate th a t A m erican to u r­
ists have spent approxim ately $500,000,000 in E urope th is summer, and the im ­
pression is th a t to u rist trav el and ex­
pen d itu re will be m uch g re a te r nex t year.
This is coming to be an increasing im­
p o rta n t item in our foreign trad e situ a ­
tion, Aveighing on the side of im ports, the
side which is still short.
I n p lace o f d y n astic conditions the
d a n g e r o f w a r noAV is to be fo u n d in
p o p u la r m isu n d e rsta n d in g an d resentm ents.— E lib u R oot.

October, 1926

T he Directors of Your New York Correspondent
I

N the case of the Seaboard, it is in ter­
esting to note the wide range o f the

D irectors’ business interests—a decided ad­
vantage to a C om m ercial Bank.

T H E SEABOARD N A T I O N A L BANK
o f the City o f N ew York
m a i n

o f f i c e s

:

b r o a d

a n d

b e a v e r

s t r e e t s

Business Fluctuation Needs
Bank Cooperation
The amount of a customer’s business—
whether it is a matter of millions, thou­
sands or hundreds— does not determine the
amount of attention he receives.
We have o n e policy governing all finan­
cial cooperation with our customers and that
is to place at his service experienced Senior
Executives— s p e c ia lis ts trained for every
conceivable problem that may confront the
banker.

F id e l it y T r u s t C o m p a n y
».


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

120 B ro a d w a y

o j* ^ [ e w T A r § i

E q u ita b le B u ild in g

*

40

THE

NORTHWESTERN

BANKER

October, 1926

Since 1885 . . G row th
that has been normal,
consistent and sur e
$

4

,

0

0

0

,

0

0

0

An ever-growing clientele that includes
many American, Scotch, Dutch and Brit­
ish Banking Houses . . .
a steady
increase in resources and facilities year
after year for forty-one years
and in all that time never a loss to a cus­
tomer because of steadfast adherence
to a strong and conservative policy.

Interstate Iron & Steel Company
5 V2 % First Mortgage Sinking
Fund Gold Bonds
Series A
Dated August 1 , 1926
Due May 1 , 1946

Banks which act as local distributors
for Foreman First Mortgage Bonds are
afforded a profitable affiliation. Cor­
respondence is invited from interested
bankers.

Price 991/2 and accrued interest
to yield S^/2%
THE

R E

NATIONAL

P U B

LX C

• • COMPANY

• •

George M. Forman &■ Company 1

La Salle and Adams Sts., Chicago

EQ U IT A B LE BLDG., D E S M OINES, IOWA

T eleph one State 4600

Chicago
N ew York
P ittsb u rgh
St. L ouis M inneapolis
San Francisco
Indian apolis
Springfield, 111.
P eoria
L exington, Ky.

GREENEBAUM SONS BANK
A N D T R U S T CO M PA N Y
O L D E ST BA N K IN G HOUSE IN CH ICA G O

R esources O ver $ 3 1 ,0 0 0 ,0 0 0
A commercial bank, offering complete facilities for the handling
of domestic and foreign banking, and serving as a depositary
for accounts of individuals, firms, corporations and banks.
OFFICERS
M. E. GREENEBAUM , President
C. HOWARD M ARFIELD, E xecutive V ice President
J. E. G R EEN EBA UM ...........................................................V ice President
J. N . GOLDSTEIN............
F. J. G R E EN EBA UM .......................................................... V ice President
Ar M. H A W K IN S..............
WILLIAM J, FICKING ER................................................ Vice President
KENNETH K. D U V A LL
C. A. B E U T E L .....................................................................................Cashier
E. B. T IL T O N .....................
M. E. F A L K E R ................................................................. A ssistant Cashier
C. B. FR E E M A N ..............
LEE W. L IB E R M A N .......................................
A ssistant Cashier
FRANK
P. EV A N S, JR.
R. M. COLEMAN
................................................... A ssistant Cashier
J. A . M OLITOR................

TRUST DEPARTMENT
JO SEPH G, S T R A U S................................................................. Vice President and Trust Officer
JO SEPH S. SA M U E L S...................................................................................A ssistant Trust Officer
CHAS. J. G R E EN EBA UM .................................................................................. A ssistant Secretary


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Federal Reserve Bank of St. Louis

A ssistant
A ssistant
A ssistant
A ssistant
A ssistant
A ssistant
A ssistant

Cashier
Cashier
Cashier
Cashier
Cashier
Cashier
Cashier

October, 1926

THE

NORTHWESTERN

;

*

.

41

BANKER

.

r *

4

/

Bond Departments and Investments
H A V E been asked to ta lk to you
today about a business which, in
spite of its phenom enal grow th in
the la st few years and its v ital im port­
ance to the business of banking, is never­
theless still som ew hat of a novelty to the
old line com mercial banker in the sm all­
sized bank. I re fe r to investm ent bank­
ing, or more fam iliarly, the bond business.
I m ust confess to you, however, th a t I
en ter upon the subject w ith g rea t tre p i­
dation as I do not feel th a t I can en­
lighten such a distinguished group of
men as compromise the N ational Bank
Division of the A m erican B ankers A sso­
ciation on the subject of Bond D ep art­
m ents or Investm ents. B ut as I have
been asked to do so I will do the best
I can and hope your tim e consumed will
not be the g rea test loss you have ever
suffered.
You will pardon me, I hope, if I block
in briefly a little history in order to pro ­
vide a background which will help you
to u n d erstan d the conditions, o pportuni­
ties, and possibilities of the bond busi­
ness in relatio n to banks.
The bond business as it existed before
the w orld w ar was conceded to be very
a risto c ra tic ; it was conducted by a few
very old, very conservative houses who
sold the fixed obligations of th e ir in h e ri­
ted clients to individual or in stitu tio n al
custom ers in blocks of $25,000 and up.
This was a tim e in the history of this
country when there was n eith er so much
cash w ealth no r so wide a distribution
of it as follow ed upon the trem endous
stim ulus which w ar-tim e necessities gave
both individual and national resources.
Such banks as had bond departm ents
during this period were the larg est banks
in the larg est cities, and these d ep a rt­
m ents were really little m ore th a n serv­
ice or sta tistic a l departm ents w hich had
come into being in m ost cases from two
causes, eith er to aid in the d istribution
of the securities of com panies in connec­
tion w ith which the bank had some in ­
te re st or responsibility, or to supply the
dem and of commercial custom ers fo r ad-

I


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Federal Reserve Bank of St. Louis

P. D. Houston
P resident A m erican N ational B ank,
N ashville, Tennessee.
A d d ress before N ational B a n k D ivision M eeting,
A m erican B a n k e rs A ssociation C onvention,
Los Angeles

vice or in v estm en ts; probably both causes
had a good deal to do w ith it. These
bond departm ents rarely or never p a rtic i­
pated in w hat we know today as u n d er­
w ritings. They m aintained in general,
only such a list of bonds as would be
likely to m eet the needs of the bank fo r
secondary reserve, and when it came to
filling orders fo r custom ers they, as a
rule, bought bonds a t a concession of x/s
or 44 of 1 per cent from the lists of the
large houses of issue.
W h a t happened to the bond business
during the years im m ediately follow ing
the outbreak of th e g rea t w ar is, of
course, well known. The bond business
was suddenly called upon to finance a
large p a rt of the requirem ents of the
nations a t w ar, even before the U nited
S tates w ent into the war. The $500,000,000 A nglo-French Loan, nex t the
flood of A m erican securities heretofore
held in E ngland, and la te r the deluge of
L iberty Loan Bonds, placed upon the in ­
vestm ent banking f ra te rn ity and the
banks a burden which could only be met
in one way, by the education of th e g reat
mass of A m erican people in the h ab it of
buying bonds in sm all quantities. This
was necessary owing to the fa c t th a t
cap italists were largely occupied in w ar
production, which used up th e ir in v est­
m ent capital, or were w ithdraw ing th eir
funds by placing money in tax -free m uni­
cipals on account of high w ar taxes, thus
effectively rem oving the usual sources of
bond buying from the corporate in v est­
m ent m arket.
I t has been said th a t the L ib erty Loan
Bond cam paigns raised the num ber of
bond holders in this country from 500,000 to 20,000,000. The resu lt was an im ­
m ediate expansion in the bond business
shown in several w a y s; first, by the in itia ­

tion of an elaborate system of d istrib u ­
tion on the p a rt of the large houses of
issue who began giving out u n derw riting
p articip atio n s in am ounts as sm all as
$10,000 to bond d e a le rs; second, the g ra d ­
ual increase in the num ber of bond de­
p artm en ts in banks of m oderate size who
were literally forced into the bond busi-.
ness by the sudden grow th of in te rest in
investm ents as well as w hat seemed to be
opportunities fo r profit in selling bonds;
and th ird , by the creation of hundreds
of sm all firms or investm ent dealers
largely composed of men who had re ­
ceived th e ir early tra in in g in the older
bond houses. These facto rs soon brought
about a decrease in the average sale to a
custom er from $25,000 to $3,000, thus
broadening the bond m ark et trem end­
ously. Im m ediately a fte r this develop­
m ent came the “In v en to ry P an ic,” of
1919-1921, and an exaggerated dem and
fo r fixed cap ital on the p a rt of over-ex­
panded in d u stry and over-taxed govern­
m ent budgets. This was the resu lt of the
so-called “Frozen A ssets” w ith w hich all
bankers were only too fam iliar a t the
time. V arious industries had increased
the size of th e ir p lan ts fo r w ar-tim e re ­
quirem ents and in m any cases had ju st
finished such expansion when the w ar
ended and business dem and fell off, or a t
any ra te only lasted fo r about 18 m onths,
and finally ended in a tie-up of tra n sp o r­
ta tio n and an over-supply of finished
goods which the consum ing pow er of the
country was unable to absorb a t a profit.
The bond business was th en confronted
w ith a large num ber of obligations se­
cured on “Bricks and M o rtar” by which
means in d u stry raised cap ital to absorb
inventory losses and in m any cases cash
to enable the business to continue.
This brings us down to the p ast five
years which have w itnessed probably the
iarg est grow th in investm ent banking, a
period d u rin g which the m ost noticeable
fa c t has been th a t the increase in the
num ber and buying pow er of p riv ate in ­
vestors has k ep t pace w ith the increased
num ber of bond issues.

42

THE

NORTHWESTERN

BANKER

What Is
Market Value?
A n Im p o rta n t F eature
to R em em ber
The marketability of all bonds is an important
feature which every banker must necessarily con­
sider.
This question has arisen many times regarding
the proper analysis of market value.
First the Investment must be founded on basic
needs, of course, but there is a greater factor to
consider which bankers and investors now recog­
nize—that is the almost intangible yet paramount
factor of weighing the resources, integrity, stabil­
ity, and ability of the investment house to intelli­
gently “analyze” and “confidently know” th e
fa c ts concerning the bonds they are selling.
The White-Phillips Company, and its entire or­
ganization has consistently maintained this prac­
tice in selling high grade bonds to Iowa banks
and bankers.

•V

LXVE ST M E NT
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D U B U Q U E , IOW A

D A V E N P O R T , IO W A

OM AHA, N E B R A SK A

B. & I. B uilding

First N a t’l Bank Bldg.

Bankers Reserve L ife Bldg.

D ES M O INES, IOWA

CHICAGO, ILLINOIS

219 Securities Bldg.

137 S. La Salle St.


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

October, 1926

Now it is no light m a tte r fo r the direc­
tors of a bank of m oderate size to decide
w hether or not to establish a bond busi­
ness. W e m ust rem em ber in the first
place th a t though it is a popular notion
th a t the bond business is very safe, the
opposite is more nearly tru e as f a r as
those are concerned who are p u ttin g up
the capital. Y our stock b roker fo r in ­
stance, has a much sa fe r game to play,
as he depends solely on the commissions
and in te rest differential on a large volume
of trading. B u t the bond dealer m ust be
p rep ared to take large long-tim e com­
m itm ents, to subscribe and pay fo r a
big block of bonds a t any time, and run
the risk of not being able to sell all of
them, and of having th e ir m arket value
depreciate and m ust even agree to the
syndicate m anagers’ having the neces­
sary ex tra o rd in ary powers fo r th e suc­
cess of new issues, and agree on his own
p a r t to p ro tect th e m ark et fo r 60 or 90
days or even longer w ith respect to the
specific bonds fo r which he is liable in
the syndicate.
T herefore the two most im p o rtan t ques­
tions about a new bond departm ent are
“W ho will ru n it? ” and “H ow ?”
The sm all bank not in close communi­
cation w ith financial centers, and pos­
sibly n o t in a position where it m ight be
able to control any g rea t am ount of local
financing, is still faced w ith this decision,
now th a t its custom ers are going to be
educated through the m ails on the sub­
ject of investm ent, w hether or n o t th eir
own bank does it. Obviously, no banker
w orthy of the nam e will wish to forego
the o p p o rtu n ity and responsibility of
serving his custom ers in the m ost com­
plete way in all m atters rela tin g to b an k ­
ing. I t is probable th a t the average bank
will be able to operate a bond d ep a rt­
m ent at least w ithout loss, and if this
is so the m ost im p o rtan t question, and
I cannot em phasize it too strongly, is the
necessity of obtain in g the p ro p er p er­
sonnel. There is no aspect of a m an’s
p riv ate life which he will o rd in arily ask
to be tre a te d w ith more seriousness, more
respect, and more secrecy th a n th a t which
concerns his financial affairs.
It is
common knowledge th a t the officers and
directors of a com mercial bank, who have
n a tu ra lly n eith er the necessary tim e nor
the experience, m ust depend upon the
m anager of a bond dep artm en t fo r the
selection of the investm ents w hich will
be offered to custom ers w ith the b an k ’s
name, rep u tatio n , and recom m endation
risk ed on each one. I t is obvious, th ere­
fore, th a t such a m anager m ust have
unusual experience, in teg rity , analytical
ability, and initiativ e. Owing to the
p eculiar m ark etin g conditions in the. band
business u n d er w hich a bond departm ent
m anager m ust decide in a few m inutes
and on the stren g th of a telegram a few
hundred w ords long, as to the m erits of
a new issue of bonds, and as to w hether
or not his bank should be let in f o r a

October, 1926

THE

com m itm ent ru n n in g from $ 10,000 to
$ 200 ,000 , it can easily be seen th a t he
m ust have n o t only the qualifications but
also the pow er to act im m ediately and
th a t it is useless to organize either his
functions or those of his subordinates on
any other basis. I t has been my own
observation th a t in general the affiliated
and sep arately incorporated securities
com pany organized in this way, keeps all
the advantages of a sim ple bond d ep a rt­
m ent and has, besides, som ewhat g reater
flexibility and freedom of action. This
is p articu la rly true, fo r example, in cases
where it m ay be necessary in the process
of raisin g fixed capital ; either fo r a busi­
ness, to finance some equity which is not
in such a form as can be offered to the
public. In this situ atio n the directors
of a securities com pany have been selected
fo r the very qualities and resources which
will aid the bond business, can be very
useful in organizing a tem porary group
to carry such an equity, frequently at
some considerable gain to th e ir in stitu ­
tion. This situation will usually arise
where more money m ust be secured than
can be safely raised by placing a m ort­
gage on the p ro p erty and w here the junior
financing m ust be in the form of a loan
which would necessarily ru n fo r a longer
tim e th an a com mercial bank would care
to ca rry it. Resource can be had either
to a note issue to be retire d serially or
to a p referre d stock issue on an attractiv e
basis, which can, a fte r the establishm ent
or re-establishm ent of the com pany’s
credit, be sold to the public a t a profit.
H aving selected the rig h t personnel fo r
directors, m anager, and staff, the ques­
tion of selection of bonds is more than
h alf solved. The real problem is to m ain­
ta in a t all tim es a list of bonds sufficiently
diversified as to interest, rate, m aturity,
industry, geographical location, etc., so
as to serve the double purpose of provid­
ing a liquid reserve fo r the bank and at
the same tim e of sa tisfy in g the various
dem ands of custom ers.
In order fo r a bond departm ent to be
able to liquidate inventory upon short
notice if the needs of the p are n t in stitu ­
tion should require it, it is not necessary
to re stric t any considerable proportion
of the investm ent inventory to short-tim e
bonds and notes. D iversification as in d i­
cated above is usually, and has proved in
our case, to be sufficient safeguard. W e
have found our affiliated com pany has
the capacity to liquidate large portions
of its inventory in cases w here it has
seemed eith er desirable or profitable to
do so. You will readily see th a t this
flexibility rep resents a type of service
which in itself is w orth a g rea t deal of
trouble to acquire.
Sources of sta tistic a l inform ation have
kept up w ith the grow th of the bond busi­
ness so th a t it is not difficult to pass ju d g ­
m ent upon bond issues. I t is not so easy
to accum ulate and m aintain a list which
will sell a t an operating profit. The first

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

and best th in g to do is to try to get on
the syndicate list of some of the best
houses of issue, and next to try to form
a w orking agreem ent w ith the bond de­
p artm en t of some large correspondent
bank w hich can be expected to supply
some bonds a t a concession. A fte r this
the m anagem ent will be on the lookout to
pick vxp from tim e to tim e blocks of
sound and seasoned bonds which look
out of line w ith th e m ark et and m ay be
expected to improve th e ir position. There
will be f u rth e r oppo rtu n ity in connection
w ith local corporations, m unicipalities,
and counties, and every effort should be
made to get a connection w ith other
houses of sim ilar size and ch a racter in
the surrounding te rrito ry so as to perm it
bidding on in d u stria l and m unicipal is­
sues of la rg er sizes.

43

One policy our own experience has in ­
dicated as invaluable, is the giving of
all possible in form ation to the custom ers
themselves. The m ost successful bond
dep artm en t is n ot necessarily the one
which begins rig h t aw ay to sell bonds
rap id ly to a com paratively sm all num ber
of obvious prospects who are probably
more in terested in the speculative th an
the investm ent fea tu re s of the bonds they
buy, but the house which succeeds in de­
veloping p atien tly a g rea t num ber of
people who place in it such confidence
th a t th e ir first thought on acquiring any
spare cash is to come to th e offices o f the
investm ent house and place it in a con­
servative bond according to the advice of
the house. This confidence will be m is­
placed unless the house exercises a g reat
care in the selection and recom m endation

Outpost
of an Army
E VENin a land accustomed to tremendous

business developments, the story of the
growth of the telephone reads like a fairy tale.
W here only fifty years ago a single message
was heard over a single telephone, today
there are m ore th a n 73,000,000 daily con­
versations over a netw ork of 54,000,000
miles o f wire, connecting over 17,000,000
telephones.
In the brief span of a half century, the first
telephone has developed into a national
service.
T he Bell System alone requires a personnel
of 300,000 people, and uses plant facilities
costing over $2,600,000,000.
A nation-wide plan t and nation-w ide ser­
vice underlie Bell System securities.
The dividend rate of the stock of A. T. & T . — parent
company of the Bell System—is g°!o. This investment
stock can he bought in the open market to yield a good
return. Write for booklet, “Some Financial Facts.”

ELL TELEPHONE
SECURITIES CO. fa
195

D.F. Houston, President
Broadway
NEW YORK
"The People’s
Messenger”

44

THE

of investm ents. The public hardly re a l­
izes w hat a w eight of responsibility it
places upon bankers when asking them
to invest money. All of our officers, en­
tirely aside from those o perating our
affiliated company, are m et daily w ith
the request th a t they recommend, or often
actually invest sums of money fo r cus­
tom ers who have grown accustom ed to
absolute reliance upon our institution.
The problem then, if a bank wishes to
deserve fo r its bond d epartm ent the
highest reputation, is to be sure th a t the
business is conducted on the proper plane,
which can only be the highest. This can
not be a ttain ed unless the bank organizes
and m aintains a personnel which un d er­
stands the exercise of judgm ent and
au th o rity, conditions which w ill never
be realized unless all, from the m anager
down, are efficiently trained. I t would
be suicide to send out to the public sales­
men who are not sufficiently train ed both

NORTHWESTERN

RANKER

in actual sta tistica l inform ation about the
securities which they are offering and in
the pow er to in te rp re t th a t and other in ­
form ation so as to guide pro p erly the in ­
vestm ent policies of th e ir customers.
Money spent on sta tistica l services as
Moody’s, B abson’s, S tan d a rd S tatistics
and other equally well-known and reliable
services, will re tu rn very large dividends
on the investm ent if fu ll advantage is
taken of the in form ation thus acquired.
This advantage can only be pursued when
it is realized th a t the bond business is
now really a profession, and th a t men of
the highest type m ust be secured and al­
lowed sufficient o p p o rtu n ity fo r them ­
selves; it will rarely be possible in a
small bank to operate efficiently a bond
business in charge of a ju n io r officer or to
employ salesm en having no more oppor­
tu n ity th an the ju n io r officers of the bank.
I t is my belief th a t in spite of the
grow th and com petition, perhaps because

P E R T A I N IN V E ST O R S
in order to comply with the law
or to satisfy their own particular
needs, require a uniformly high
standard of safety in all their invest­
ments. Others must have a definite
degree of marketability or a certain
standard of yield. But whatever
these individual needs may be, it is
always possible to satisfy them with­
out sacrificing the advantages of di­
versification. With a little study, a
list can be so chosen that it will con­
tain all the different types o f bonds
from many different localities,— yet
all about equally secure, equally
marketable or equally productive
of income. We shall be glad to
explain this process further, per­
sonally or by letter, upon request.

October, 1926

of these facto rs, there is still a real op­
p o rtu n ity fo r m utual advantage to both
investors and banks in sta rtin g bond de­
p artm en ts in com munities the am ount and
ch aracter of whose w ealth will ju stify it.
I t will also be found th a t the bond end
of a bank can be of g reat value to other
departm ents. O ur own company, if you
will pardon the reference, has through
the ren d erin g of good service to its cus­
tomers, brought to the commercial and
tru s t d epartm ents of the A m erican
Banks accounts which in all likelihood
would have been otherw ise inaccessible.
There are, of course, p itfa lls to be
avoided. I t would be fa ta l, I believe, fo r
any bond business to specialize on any
one type of bond eith er real estate, m u­
nicipal, or w hatnot, as the only g uarantee
of a stable business is in the ab ility to
sell some classes of bonds a t all times.
Two very freq u en t statem en ts which will
be h eard are, “I f these X, Y and Z 5’s
are so good why haven’t you sold them
a ll?” and “You’re ju s t try in g to sell me
these bonds because you have some of
them on hand.” So you will read ily see
th a t in o rd er to sa tisfy the m odern bond
buyer it w ill be necessary fo r your bond
dep artm en t to exercise more th a n o rd i­
n ary discretion, oftentim es to neglect
all the bonds on h and and go out into the
m ark et to buy bonds w ithout profit in
ord er to give a custom er the bonds he
ought to have and in general to display
th e fo resig h t dem anded by the risks in ­
herent in any business which sells m er­
chandise subject to the whims of its cus­
tom ers and its m arket. N evertheless, I
believe th a t, pro p erly sta rte d and carried
on, the bond dep artm en t of a bank should
be a source not only of financial rew ard
b u t also of the priceless prestige which
comes to an in stitu tio n as a resu lt of a
constant effort to m ake the practice of
th r if t more a ttra c tiv e and to give in telli­
gent advice to th e im pulsive A m erican
public, which needs it badly. And, not
least im p o rtan t, a bond dep artm en t ought
to develop among the personnel of the
banks a corps of men who, if they con­
scientiously follow the principles of the
profession of bond selling, will provide
an ever increasing num ber of valuable
leaders in finance and in business.
A n E xcuse

D e W olf & C ompany , inc .
Investment Bonds

CHICAGO


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Federal Reserve Bank of St. Louis

-

Procrastination is more th an the “ thief
of tim e.” I t is the prospect’s last excuse
—w hatever he says is the reason, it isn’t
a reason— it’s an excuse.— (Objections,
M eeting) — The Stethoscope.

Established 1889

MILWAUKEE

P oetry, in its n atu re, is sacred to the
good and g re a t; the relatio n between
them is reciprocal, and they are ever
propitious to it. I t is th e privilege of
po etry to address to them , and it is th e ir
prerogative alone to give it p ro tec­
tion.— Congreve.

October, 1926

THE

NORTHWESTERN

45

BANKER

The Land Trust or “Ground Rent”
Certificate
t I \H E R E is now being introduced into
1 the general investm ent m arkets a
com paratively new form of real
estate investment known as the land tru st
certifiate—or, as it is sometimes called,
the ground rent certificate.
The land tru st certificate, as its name
implies, is a certificate evidencing an
ownership interest in the fee title to land
held in tru st and usually land which is
centrally located in large cities and from
which rentals are received under a long­
term lease. I t is, therefore, a real estate
investment.
Is Not a Mortgage
A t the outset, it should be clearly understoood th a t the land tru st certificate is not
a mortgage, a leasehold bond or a note, but
it is an evidence of actual ownership and
each certificate holder has the actual
equitable ownership of an undivided p a rt
of the land. In other words, the certifi­
cate holder is an owner and not a creditor.
The land tru st certificate, in m any lo­
calities, is a com paratively new medium
of investment, but it is based on well
recognized principles of law and business,
fo r the land tru st certificate method of
financing real estate is a refinement of
“ground rents,” one of the earliest known
mediums of investment, which were
common in the days of the E gyp tian and
Roman E m pires and mention of which is
first made in America in 1662, in connec­
tion w ith Lord B altim ore’s development
of the soil of M aryland.
“ Ground re n t” is now generally under­
stood to mean the ren t p aid to the owner
of land under a long-term lease, and the
paym ent of rentals under a long-term
lease fo r the use of centrally located land
in large cities is the fundam ental basis
upon which the financial and the operating
structure of the land tru st certificate rests.
Sim plicity is a characteristic of the legal,
financial and operating structure of the
land tru st certificate. U sually the land
is leased under a long-term lease to p ro ­
vide a steady income. Title to the land
is conveyed to a trustee under the term s
of an agreem ent and declaration of tru st
reciting th at the trustee is acting as trustee
for the certificate holders and in which
capacity he holds the fee title to the land
fo r the benefit of the certificate holders
and collects and distributes the rentals,
received for the use of the land, pro rata to
each certificate holder.
The equitable ownership of the land,
under the tru st agreement, is divided into
a designated num ber of equal p a rts and
certificates are issued by the trustee show­
ing the holders thereof to be the owners of
such num ber of p a rts as they have in ­
dividually purchased. I t is this division

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Federal Reserve Bank of St. Louis

of the ownership of the fee title of the
land into p arts, coupled w ith various legal
and business safeguards, which assure the
validity of operation and income, which
makes it possible fo r the average investor
to share in the ownership of the fees to
centrally located land in large cities.

By Milton O. Johnson
M anager, A n a lytica l D epartm ent, F irst
Illinois Com pany
“The essence of the security of the
land trust certificate is that so long as
rentals are regularly and promptly paid
there is no worry about income and if
the rental is not paid the land plus the
improvements thereon is owned by the
certificate holders, without the neces­
sity of a foreclosure suit, at a cost con­
siderably less than the going value.”

When the Title Passes
W hen the title to the land has been con­
veyed to the trustee and a long-term lease
has been placed on the property, any num­
ber of shares in this ownership can be
sold, such shares being represented by

M easuring
y

o

u

r

s e

c u

r ity

H E real security back of any given
bond can be determined only
through a judicious application of the
proper measurements.
Industrials,
rails, public utilities, foreign bonds—
all require experienced scrutiny.

T

The N ational City Com pany has
unusual facilities for measuring the
values back of the bonds which it
offers to banks. We will gladly send
our regular m onthly list of recom­
mended issues.

T h e N ational C ity C om pany
National City B ank B uilding , N ew York
Offices in more than 50 leading cities throughout the world
SH O RT

TER M

NOTES

ACCEPTAN CES

46

THE

land tru st certificates, but the aggregate
price of any particu lar issue of such cer­
tificates should not exceed a conservative
ap p raisal of the land.
Usually the lease provides th a t the
lessee shall p ay all taxes and assessments
on the land, and th at the lessee shall keep
the building in good re p a ir and adequately
insured at all times. In order th at the
trustee may be in a position to p ay to the
certificate holders the full am ount of the
“ground ren t,” the lease should fu rth er
provide fo r the paym ent by the lessee of
all expenses incident to the trusteeship.
A nother provision of the modern land
tru st certificate is an option whereby the
lessee, who has an investment in the form

NORTHWESTERN

of an improvement on the land, may p u r­
chase the fee title to the land before the
expiration of the lease in which event the
certificates are retired a t a price exceeding
the original cost.
The security of the land tru st certificate
holder rests upon two fundam ental f a c ts :
F irst. The holder of the land tru st cer­
tificate is an actual p a rt owner of the fee
title to real estate usually centrally located
in large cities and from which rentals are
obtained under a long-term lease, and usu­
ally at a price corresponding to the value
of the land. I f the lessee defaults in the
paym ent of the “ground ren t,” the lease
may then be cancelled and the trustee,
w ithout foreclosure procedure, comes into

In the immediate neighborhood of the Fairfax Hotel are located some o f the finest and
most successful hotel properties to be found anywhere in this section o f the country.
These include theWindermere, Chicago Beach, Madison Park and East End Park Hotels.

Sm all Unsold Portion of $675,000 Issue

The Fairfax

First M ortgage Leasehold bV2% Serial Gold Bonds
In opinion o f counsel, these bonds are a legal investment for National and State banks

SECURITY: Direct closed first mort&a&e on completed ten-story and basement
fireproof apartment hotel together with 197-year leasehold in land thereunder,
and equipment and furnishings of the building located in the heart of one of the
best residential districts of Chicago, on the southwest corner of Hyde Park Boule­
vard and Dorchester Avenue. The security has been conservatively valued at
$1,250 000, only 54% of the total valuation. Net annual income is estimated at
$134,000, more than three times the greatest annual interest charge. Bonds dated
November 1 , 1925; mature serially in 3 to 10 years. Interest payable May 1 and
November 1 . Callable at 10 2 . Normal federal income tax up to 2 % paid. Chicago
Title & Trust Company Title Guaranty Policy. Fire insurance is carried for the
full amount o f the bond issue. Denominations of bonds: $ 100 , $500 and $ 1 ,000.
Price 100 and accrued interest to net 6^ % .
A sk for C ircu lar No. 804
No investor in our First Mortgage Real Estate Gold
Bonds has ever lost a dollar of principal or interest
Phone
R
ihh WOLLENBERGER
& CO. 41 Years
Randolph
_ _
, n v e s t m c n t Bankers — o/
5032

w


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Federal Reserve Bank of St. Louis

BANKER

105 S o . L a S a lle S tr e e t

C H IC A G O

f

Banking

October, 1926

immediate possession of the land and all
the improvements upon it, fo r the benefit
of the certificate holders. Presum ably the
value of the land and the building should
be much g reater than the value of the land
alone, and the certificate holders may dis­
pose of the land and the building to suit
themselves.
Second. The source of the income re­
ceived by the certificate holders is the
“ground ren t” paid by the lessee. In o r­
der to retain the use of the improvement
on the land which represents an invest­
ment on the p a r t of the lessee, the lessee
m ust pay the ren ta ls regularly and
prom ptly.
I t is the general tendency fo r all well
located real estate to increase in value
over a period of years. The question,
therefore, arises as to w hat possible effect
any increase or decrease in the value of
the land would have upon the land tru st
certificate holders.
F rom a theoretical standpoint, an in ­
crease or a decrease in the land value
would have no effect on the certificate
holder fo r the ow nership o f the land is
subject to a lease, and during its life, if
pro p erly draw n, the lease provides fo r a
fixed income and establishes the value of
the land to the lessor.
If, however, th e lessee d efau lts a fte r
the lease has been in operation fo r a num ­
b er of years, the certificate holders come
into possession of the land and any im­
provem ents m ade thereon, and the value
of the land, w ithout the value of the
building, m ay be considerably g reater
th an a t the tim e of the issuance of the
certificates.
The essence of the security of the land
tru st certificate holder is th a t so long as
ren tals are reg u larly and prom ptly paid
there is no w orry about income and if the
re n ta l is not paid the land plus the im ­
provem ents thereon is owned by the cer­
tificate holders, w ithout the necessity of
a foreclosure suit, a t a cost considerably
less th an the going value.
The land tru s t certificate m ethod of
financing real estate has been more highly
developed in Cleveland, Ohio, th an in any
o th er large center. These certificates are
legal investm ents fo r Ohio savings banks
and tru sts if the aggregate price of any
p a rtic u la r issue does not exceed the value
of the land or 60 p er cent of the combined
value of the land and im provem ents, and
provided th ere are certain safeguards as
to insurance and the application of funds
fo r construction of buildings if the land
is unim proved.
In d iv id u al and in stitu tio n al investors
w ith large sums available f o r investm ent
are already fam iliar w ith the fee title to
land cen trally located in large cities as a
medium of investm ent.
Through the
stru ctu re of land tru s t certificate financ­
ing, th is fo rm of investm ent, in an in ­
creasing num ber of localities, is now open
to the average investor.

October, 1926

TH E

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

47

B A N K E R

Bond Market Continues Strong
“

/% LL the fund am en tal fac to rs which
/-%
have contributed to advancing
security prices during the p ast
y ear rem ain favorable, w ith no indication
of an early m ajo r change.”
I n brief, this statem ent sums up the
opinion of H alsey, S tu a rt & Co., on cu r­
re n t business conditions and th eir re la ­
tion to the bond m arket, as expressed in
its q u arte rly review, issued recently. In
su p p o rt of the statem ent, the review
points out t h a t :
Business Is Strong
“Business is active, the agricultural
outlook is prom ising, building operations
continue on a large scale, em ployment
conditions are excellent, the banking
situ atio n w ith respect to both loans and
reserves is exceptionally sound, and
p rosp erity is w idespread. The existing
stren g th of bond prices is a n a tu ra l con­
sequence.”
In view of the renew ed in te rest in
foreign financing, occasioned by a num ­
ber of offerings in recent weeks, the com­
m ents of the review on the foreign bond
situation are p articu la rly p ertin en t. I t
say s:
“ There are unm istakable signs, th a t the
A m erican investor is g radually becoming
h ab itu ated to the role of foreign lender.
S ensational news dispatches from E urope
no longer produce the effect upon the
m ark et which they form erly did, and
there are evidences of a tendency on the
p a r t of the public to distinguish betw een
im p o rtan t developm ents and those which
are purely ephemeral in character.
“A represen tativ e list of fifty foreign
governm ent and m unicipal obligations
show an average gain of somewhat over
two points on the basis of present quota­
tions as com pared w ith those of a year
ago. E ighteen South and C entral A m eri­
can item s in the list show an average gain
of over three points. E ighteen E uropean
item s, governm ent and m unicipal, of
countries which p articip a ted in the W orld
W ar, show a gain of nearly two points,
while those of form er E uropean neutrals
included in the list show an advance of
slightly less th a n one point. The fo re ­
going m ay be in te rp re ted to indicate th a t
investm ent confidence in w ell-selected
foreign bonds is steadily gaining ground.”
W ith business conditions in general in
good order, as the review indicates, it
n atu ra lly follows th a t the position of the
in d u strial com panies is excellent, and the
review points this out, sa y in g :
“The present outlook is th a t the in ­
d u strial com panies of the U nited S tates
will rep o rt larg er aggregate earnings fo r
1926 than fo r any previous year. All
classes of in d u stry n a tu ra lly are not
sharing uniform ly in this p ro sp erity but,
generally speaking, it is the exceptional

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Federal Reserve Bank of St. Louis

com pany which is not rep o rtin g sa tisfa c ­
tory income. As a rule, the companies
are tak in g advantage of the o p p o rtu n ity
to stren g th en th e ir financial position and,
in m any cases, have built up reserves ade­
quate to m eet any likely contingencies.
In d u stria l bonds are in a m aterially
stron g er position th a n ever before. I t is
the opinion of m any w ell-inform ed in ­
vestors th a t this class of bonds offers the
most a ttra c tiv e o p p o rtu n ity a t the
p resen t tim e, from the view point of
reasonable safety and sa tisfac to ry ra te
of re tu rn .”

Comment is also made on the present
position of public u tility , real estate m o rt­
gage and m unicipal bonds in the follow ­
ing m anner :
“ Three developm ents of outstan d in g
in terest have occurred thus f a r in 1926
to em phasize the stro ng investm ent posi­
tion of public u tility bonds. The first
was the action of the Legislatures of Mas­
sachusetts and New Je rse y ad m itting
public u tility bonds, u nd er certain re stric ­
tions, to the list of securities eligible as
le g a l investm ents’ fo r tru stees and sav­
ings banks in these states.

T r a n s m it t in g I n c o m e t o C a r e f u l I n v e s t o r s

Swifter than the flight of time* •••silent as a moon­
beam •••• powerful as an army of Goliaths••••
Electricity, flowing through copper strands, brings
light, energy and power to widely scattered cities.
?
The marked stability of Electric Power and
Light Companies dates back many years to
the development of Central Stations. By
linking many communities together on
long distance transmission lines, there was
brought efficiency and economy of operation
to these companies and safety to their bonds.

Th o m p s o n Ro s s &
EST A BL ISH ED

INVESTMENT
B ank F lo o r
NEW YO RK

C

H

1 9 12

C d r lllC r

SECURITIES

2 9 S. La Salle S treet
I C

A

G

O

Telephone Randolph 6380
Copyright, 1M 5.T.R .& Co.. Inc.

C a ll o r w rite f o r our
booklet, " T h e Id ea l In ­
v e s t m e n t a n d special
January list o f bond of­
ferings. Ask fo r Booklet
T-14, please.

S A N F RAN CISCO

B O ST O N

TH E

48

“ The second has been an increase of
about twelve per cent in the output o f the
electrical pow er p la n t of the country over
la st year, which was by f a r the largest on
record. A significant aspect of this in­
crease is th a t all sections of the country
shared alm ost uniform ly in the gain. The
th ird has been the renew al of investm ent
confidence in well protected electric ra il­
way bonds evidenced by strengthening
prices am ong represen tativ e issues and
the ready absorption of recent offerings
of this character. U tility bonds, as a
class, continue in a very strong position.
Building Trades Active
“ The financing of the v ast volume of
building construction wfiich has been

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

undertak en in this country d uring recent
y ears has g reatly increased the am ount
of outstan d in g real estate bonds. W hen
surrounded w ith p ro p er safeguards, these
bonds are a ttra c tiv e investm ents. The
m ain assurance of the existence of these
safeguards, such as conservative v alu a­
tion and adequate earning power, m ust
come from the rep u ta tio n of the sponsor­
ing investm ent house. Investm ents in
this class should be selected probably
more carefully u n d er existing circum ­
stances th an in any other field of domes­
tic securities.
“P erh ap s the m ost notable develop­
m ent in the m unicipal m ark et fo r the
y ear so f a r has been the d istin ct decline
in the to ta l volume of new issues as com­

BROKAW
AND
10

B A N K E R

CO M PA N Y

October, 1926

p ared w ith the corresponding period of
1925, although th ere has been an increase
in the to ta l volume of corporate financing.
A nother fe a tu re of the m ark et has been
the relativ e scarcity of obligations offer­
ing medium yields, while there has been
a fa irly liberal supply both of those ap­
proaching a 4 per cent basis and those
yielding 5 per cent and upw ard. Issues
now in prospect fo r the rem ainder of the
year are not numerous, and the outlook a t
present is th a t the final figures f o r 1926
will be below those fo r either 1925 or 1924.
In direct contrast with a year ago, price
levels were well m aintained during the
slack m idsum m er season of 1926, and the
tone of the m ark et continues strong.”
Enters the Bond Field
S en ato r H. I. F o sk ett, u n til recently
vice president of the Shenandoah N a­
tional Bank, a t Shenandoah, Iowa, has re­
signed his position w ith th a t in stitu tio n
and will devote his fu ll tim e to the bond
business. H is h ead q u arters w ill fo r the
presen t be in Shenandoah, and possibly
la te r on a Des Moines connection will be
established.
S enator F o sk ett has been in the bank
business since 1883, holding various exec­
utive positions. H e was chairm an of the
legislative com m ittee of the Iow a Bank-

} South La Salle S t r e e t , C h i c a g o
Direct Wire to Edward B. Smith & Co.
N ew York • P h ilad elp h ia

G eneral T rad in g D epartm ent
Specializing in P acking House,
Canadian, E quipm ent T ru st
and Pacific C oast Securities.

S pecial B on dS ervice to Banks

IOWA REPRESENTATIVES:
Edward J. K elly an d M aurice F. Leahy

SEN. H. I. F O SK E T T

ers A ssociation in 1922, and has been a
member of th a t com m ittee ever since u n ­
til last Ju n e. Several years ago he was
state senator from his district.
The type of bonds in which S enator
F o sk ett will specialize are know n as Illi­
nois Special A ssessm ent bonds, dealing
exclusively w ith public im provem ents
such as paving, sidew alks, and sewer in ­
stallations. U nder the laws of Illinois,
the holders of Local Im provem ent Bonds
receive special protection.

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

October, 1926

THE

NORTHWESTERN

BANKER

49

A n Attractive N ew Issue
AT

THE
Sucker,”
following
scholarly treatise
bonds:

request of “ Constant
R utherford, N. J., the
is reprinted. I t is a
on the average issue of

N EW ISSU E
HOME E D IT IO N
(E xem pt from Federal Income Taxes and the
D ra ft)

$100 ,000 ,000.00
IN T E R N A T IO N A L SLEDGEHAM M ER
COMPANY
6 per cent Gold Bonds
D ated Dec. 1, 1926.
Due A pril 1, 1956.
D efaulted Dec. 1, 1928.

D escription o f B onds: These bonds
have trian g u lar or oblong-shaped coupons,
at the option of the buyer. In $1,000 or
heavier denominations, the bonds have
yellow filigree work along the edges and
handsome green engraving in the center.
They are printed on the best grade of vel­
lum and neatly folded, face up. This is
as accurate a description of the bonds as
we can give.
The principal and interest, or both, will
be payable in gold, sterling, silver, p la t­
inum tin or I. O. U.’s in New York, Bos­
ton, Chicago and other m ajor league cities
This issue is callable as a whole, in p art,
in fractions, in absentia or habeas corpus
on any interest date at 105 in the shade,
up to and including December 1, 1929; at
103 up to and including December 1 , 1934,
and at a nominal tem perature up to and
including December 1 , 1941. A pplica­
tions will be made, when we have a spare
moment, to have it listed on the New Y ork
Stock Exchange and the D ram a league
bulletins.
Mr. D. V. Bloosh, vice president of the
company, has summarized the following
facts concerning the com pany and these
bonds:
B usiness: The In tern atio n al Sledge­
hammer Company is engaged in the m anu­
facture of high-grade sledgehammers, cro­
quet mallets, chairm en’s gavels, p atro l­
m an’s nightsticks and xylophone thum pers.
Its products are sold wherever the English
language is spoken or murdered. The
rap id increase in autioneer’s sales and
R otary Club luncheons insures expanding
business fo r the next six years.
The International Sledgehammer Com­
pany has been operating since 1821 A. D.
and every knock is a boost fo r this p a r ­
ticular industry. There isn’t a chance in
the world of our orders falling off unless
something unexpected happens like Borah
cancelling a chance to speak.
P ro p e r ty : W e own sledgehammer fac­
tories, warehouses and shipping plants in
N orth Swishing, Me., Yoohoo, Mich., Gold­
fish, K y., and S n ippit, Ariz., covering the
entire country like a wet blanket. All
factories are protected from wear and tear
by first and second m ortgages on the roof.
The physical p ro p erty of the company is
in first-class shape. S p iritu ally and m or­
ally it is also O. K.

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

E arnings: The company has a long
record of magnificient operation. I t was
established 125 years ago (eastern standard
time) and hasn’t had a bad year since, ex­
cept fo r income tax purposes. The fo l­
lowing is the statem ent of earnings fo r
the last 12 months, ending St. Sw ithin’s
Day, as examined and doctored by our
own certified private accountants:
Gross earnings.................. $
O perating .........................
N et earnings ......................
A nnual interest require­
ments ..............................

44,000,000.08
76,000,000.50
105,000,000.87
268,000,000.29

The above net earnings are over three
times the interest requirem ents, the way
we figure it out.
Purpose o f the Issue : The proceeds of
this bond issue will be used by the presi­
dent and board of directors to purchase
steam yachts. This will make our com peti­
tors think we are making money and worry
them sick. We step in and take th eir busi­
ness while they’re laid up.
W e offer these bonds when, as and if
issued, fo r the people, of the people, by the
people.

Investments
SUITABLE
Name of Security

FOR

BANKS

Rate

Maturity

Price

To Yield
About

6

1929

IOO

6 .0 0 9 b

6)4

1933

M arket

7-ioc/o

6

1941

9 9 .5 0

6

1941

IOO

6

I9 29 -I9 41

C om pañ ía Cubana
3

Tear Guaranteed Gold Notes

A ssociated S im m o n s H a r d w a r e
C om pan ies, 10

Tear Secured

Gold Notes
P en n 3 ylva n ia-D ixie

Cem ent

C or­

First Mortgage S. F.
Gold Bonds, Series A

poration ,

6 .0 5

°/o

Chicago Beach H otel

First Closed Mortgage S. F .
Gold Bonds
Seaboard T e rm in a l

and

6 .0 0 9 b

R efriger­

First Mortgage
Serial Gold Bonds

6 . 1 0 to

ation C o m p a n y ,

6 .13 %

H otel Sherm an Com pan y

F irst Mtge. Serial Gold Bonds

1946

9 8 .8 0

5.6 0 9 b

4 /4

1 966

9 6 .5 0

4 .9 5 9 b

5

1956

96

5 .2 5 %

5

1956

IOO. 5 0

4 .9 7 9 b

s H

Illin ois C e n t r a l R a ilr o a d C o m p a n y

Forty Tear Gold Bonds
C en tral P o w e r and L ig h t C o m p a n y

First Mortgage Gold Bonds,
1 9 5 6 Series
W est Penn

Pow er Com pany

First M tge. GoldBonds,Series G

Subject to p rio r sale an d ch an g e in p rice.

Your order or your inquiry concerning these securities
w ill receive our prompt attention.

S 'iiik M iJfiitcfum &P Co>J
IL L IN O IS

M ERCHANTS

BANK

B U IL D IN G

C h ic a g o

[ C O R R E S P•O N• D BE ON STTSO NO F • KNI DE WD E RY O, RPKE A B• O D• Y

& CO .

1

J

OFFICERS
W . EDWIN S T A N L E Y , PRESIDENT

JAM ES C. HUTCHINS, VICE PRESIDENT

W I L L I A M H. M I T C H E L L , S E C R E T A R Y
RO BERT A. GARD NE R, TREASURER
H A RO LD C . S T R O T Z , A S S I S T A N T T R E A S U R E R

THE

50

Gyppum &

Co.

B a m m & B oozlk, I n c .
S o a k u m , H ard & C o m p a n y ,
L amb & S hearer.
(T h e s t a t e m e n ts in th e a b o v e a d v e r tis e ­
m e n t a r e n o t g u a r a n t e e d b y us, a l th o u g h
ta k e n fro m sources w ith a reliab le re p u ­
t a t i o n f o r p e r j u r y , etc. Y o u c a n b e lie v e
t h e m o r n o t , b u t d o n ’t s a y w e d i d n ’t w a r n
y o u . ) —C o p y r i g h t , 1926.

Foshay to Expand
In connection w ith the broad expansion
program of the W. B. F oshay Company
w hereby security sales offices are being
opened in P o rtlan d , Oregon, San F ra n ­
cisco, D enver, and Boston, in addition to

Universal Gypsum & Lime Co.
successor to

U niversal G ypsum C om pany
and

P alm er Lime & C em ent Co.
/

/

/

W e have prepared extensive booklets describing
the gypsum industry and the securities of the
above Company, which will be sent
to anyone making request.

231 S. LA S A L L E ST.

BOSTON


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

BANKER

th e ir present offices in M inneapolis, St.
P aul, New Y ork and Chicago, th ere is the
announcem ent of the appointm ent of
H arold C. Gage, of M inneapolis, M inne­
sota, as general sales m anager of the
Foshay Company In v estm en t D epartm ent
in charge of all security sales offices.
Mr. Gage has had his own investm ent
business in M inneapolis fo r the p ast
fifteen years. H e possesses an extensive
and valuable knowledge of public u tili­
ties, being one of the oldest d istrib u to rs
in the N orthw est of public u tility securi­
ties. He has a wide acquaintance w ith
investm ent dealers throughout the U nited
S tates.
This appointm ent follows close upon

Price: 99 44-100ths per cent pure, to
yield a 7-cent bar of ivory soap.

A.

NORTHWESTERN

C H IC A G O

P H O NE, C E N T R A L 6556

CEDAR RAPIDS

October, 1926

the opening of the W. B. F oshay Com­
pany sales offices in Denver and P o rltan d ,
Oregon, the D enver office benig under the
m anagem ent of M e rritt E. Bailey, an ex­
perienced investm ent m an and a form er
resid en t of M inneapolis.
C.
H. B urnw orth, form erly of the
Lum berm en’s T rust Company, P o rtlan d ,
Oregon, will be in charge of the P o rtlan d
office. Mr. B urnw orth is well know n as
an investm ent expert and has a large
clientele on the Pacific coast.
The W. B. F oshay Company is a M inne­
so ta corporation w ith its m ain offices in
the F oshay B uilding in M inneapolis.
This com pany conducts an extensive in ­
vestm ent business throughout the coun­
try , o rig in atin g and u n d erw ritin g issues
of securities of public u tilities and in ­
d u stria l companies, and o p eratin g and
financing its own u tility and in d u strial
companies. The combined p ro p erties of
the com pany serve electric, gas, w ater and
stree t railw ay service to more th an one
hundred cities and tow ns in eight states
— W ashington, Oregon, C alifornia, A ri­
zona, Iowa, AVisconsin, M innesota and
V erm ont— and p ro p erties are being ac­
quired in New Jersey , Ohio, In d ian a and
Idaho.
The Denver, P o rtlan d , San Francisco
and Boston offices are being established to
provide fo r sales directly to investors
of securities issued or u n d erw ritten by
th e W . B. F oshay Company.
Krenn & Dato Offering
K ren n & D ato, dealers in exclusive in ­
vestm ent securities, located in Chicago,
are offering F irs t M ortgage F ee 6 V2 per
cent Serial Gold Bonds to the sum of
$600,000, dated Ju ly 1, 1926, and due
serially 1929 to 1938, on the new H otel
Roosevelt, Cedar Rapids, Iowa.
The H otel Roosevelt w ill be located in
the h ea rt of the financial, th e atric al and
business section of Cedar R apids, and
close to fo u r railro ad stations. A ll street
cars pass the door or are w ithin one block.
The building will be of fireproof rein ­
forced concrete construction, and will
contain 250 guest rooms.
The ground and -building complete
w ith fu rn ish in g s has been app raised at
$1 ,2 2 2 ,0 0 0 .
To go about moping, depressed, blue,
out of sp irits in general, is to exist, but
not to live. I t is the condition of a mollusk and unw orthy a hum an being. W orry
is a state of sp iritu a l corrosion. A trouble
can either be rem edied or it cannot. I f
it can be, then set about it ; if it cannot
be, dism iss it from your consciousness, or
bear it so bravely th a t it m ay become
transfigured to a blessing.—W hiting.
Open air, open door, open shop, open
covenants, and open m inds are all desir­
able, b u t th e country is suffering still
from open m ouths.— W all Street Journal.

October, 1926

THE

NORTHWESTERN

BANKER

51

W h y Country Banks Are Buying Bonds
A N K E R S are asking frequently now­
adays why it is th a t the banks of
the sm aller cities and tow ns are
coming into the bond m arket more and
more fo r sound securities.
I t was only a few years ago th a t the
“country b an k er” w aived a deprecating
hand w henever any hopeful young bond
salesm an entered his portals and tried
to argue him into the notion of buying
bonds fo r th e b an k ’s account or fo r re ­
sale to custom ers.
Q uestionnaires sent out by The N o rth ­
w estern B anker and o th er inquiring pub­
lications show conclusively th a t in the
last few years the sm aller banks have
bought m ore and more securities. T heir
reasons fo r buying bonds m ay suggest to
other bankers sim ilar possibilities of
profits.
F o r the bank’s own investm ent account,
safe bonds are p articu la rly to be recom ­
mended. In this tim e of easy money, such
as the present, the b anker w ill find th a t
he can m aterially increase his ban k ’s in ­
come by investing a p a rt of his available
funds in selected bonds. These m ay be
either of the short-term v arie ty fo r more
or less liquid funds, or m ay be of longer
m atu rities fo r funds upon which the bank
does not expect to be called in the near
fu tu re. In eith er event the increase in
the bank’s income, as against idle funds
o r money loans a t a low ra te of in terest,
is well w orth while.

B

Guard Against the Future
In years to come, ju s t as in the past,
the U nited S tates w ill undoubtedly
undergo certain periods of depression.
These are unavoidable and should be
guarded against by the conservative
hanker. The investm ent of a p a rt of the
b ank’s funds in safe bonds constitute a
dependable bulw ark fo r such times.
Going beyond the b an k ’s own account,
many bankers in sm aller cities and towns
have found it quite profitable to purchase
bands fo r th e ir custom ers’ investm ent.
In m any instances these custom ers of the
bank are going to buy bonds somewhere,
so the bank w here he does business m ight
as well m ake the commission as some
o th e r bank or investm ent house. The
bank can go still fu rth e r, however, and
create newT bond investors to the b an k ’s
own profit.
Some bankers seem to fe a r th e ir de­
positors w ithdraw ing funds from the sav­
ings account to purchase bonds. I th in k
it is p re tty generally proven, however,
th a t the savings accounts have not su f­
fered w here new bond investors have been
created. The h a b it of buying bonds it ­
self inculcates th r if t in a m an or woman,
w ith the usual resu lt th a t th e ir savings
account is actually increased ra th e r than
decreased. O ftentim es the bond coupons
them selves go to the savings accounts.

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

M any bond buyers follow the p ractice of
opening savings accounts to save fu n d s
w ith which to buy a $500 or $1,000 bond
a t some fu tu re date.

w ithin its own com m unity the m any
thousands and hundreds of thousands of
dollars which go out annually into fra u d ­
ulent stock prom otion and are perm ­
an en tly lost. This one fa c t alone should
be sufficient to induce the th in k in g banker
to place safe investm ents before his cus­
tomers.

Sources of Profit
W hen a new in v esto r is created, the
bank au tom atically creates a new pros­
pect fo r its sa fe ty deposit boxes.
By preaching and selling sound invest­
ments, the bank serves m aterially to keep

In m any com m unities about the only
investm ent ever considered is a first m o rt­
gage on rea l estate. There is no denying
th a t such loans, where pro p erly placed,
are a very prim e investm ent. W here all
the investm ent funds of one com munity,

By R. G. Fields
A d vertisin g M anager, Caldwell
& Com pany

F avorable
P ro v is io n s
A W E PREFER to recommend securities for
which sinking fund provisions
automatically develop dependable markets. W e favor bonds
of reasonable maturities, so as
to give greater consideration
to changing conditions.
The application of these prin­
ciples will, in our opinion,
tend to strengthen the security
holdings of financial insti­
tutions as well as those of
individual investors.
A List of Current Offerings
will be mailed upon request

B A R T L E T T &. G O R D O N
IN C O R P O R A T E D

First National Bank Building, Chicago
First Wisconsin National Bank Building, Milwaukee

52

THE

however, are placed in this one form of
security, the old erro r of p u ttin g all of
one’s eggs in one basket is committed.
B ankers know th a t this should be guarded
ag ainst in any investm ent program . D i­
versification of an individual’s or a com­
m unity’s investm ents by including sound
bonds as a p a r t of such investm ents will
prevent this situation.
Bond Sales Increase
The A m erican public is buying more
bonds now th a n ever before in the his­
to ry of this country, and the hunger fo r
safe securities shows no signs of ab a te­
ment. I t is probably tru e th a t 100 people
are buying bonds today to every one th a t
bought them ten years ago. The finan­

NORTHWESTERN

BANKER

cial in stitu tio n which does not keep step
w ith this fo rw ard movement is placing it­
self liable to be relegated to the classi­
fication of B ack Numbers.
In the te rrito ry covered by T h e N orth ­
western B anker , an unusually large p e r­
centage of the sm aller as well as larger
banks are ra te d as progressive in stitu ­
tions. I t is probably fo r this reason th a t
the questionnaires sent o ut by th is publi­
cation each y ea r have shown th a t the
banks are annually increasing th e ir in ­
te re st in safe investm ent bonds.
Superpower in Action
I t is commonly understood th a t elec­
tric pow er cannot be tran sm itte d fo r dis­

A

T h e T im e Is at Hand
when every welhbalanced list of
bond holdings should include a
substantial proportion of

October, 1926

tances of more th a n about two hundred
miles w ithout considerable loss in vol­
ume. The question n atu ra lly arises as to
w hat, th erefo re, is the value of su p er­
power lines extending from five hundred
to two thousand miles. D uring the p ast
y ea r a drought in the south eastern p a rt
of the country seriously in te rfe re d w ith
the g en eratin g facilities of companies in
this te rrito ry . The com panies in the
im m ediate v icin ity of the one m ost seri­
ously affected were suffering to some ex­
te n t and consequently had no surplus
pow er fo r sale. A com pany seven hun­
dred miles away, w ith pow er in excess of
its own needs saved the situation. I t di­
rected all of its excess pow er to an in te r­
connected system one step n earer the
drought area. This system thus relieved
of a p a rt of its reg u la r dem and, in tu rn
sen t its surplus pow er into th e tran sm is­
sion lines of th e next ad jacen t company.
Service in th e te rrito ry suffering from
drought was m aintained and no electrical
energy was forced over high-tension lines
fo r a distance of more th a n two hundred
miles.— From Bond B riefs, Chicago T rust
Company.
Open in Davenport
D avenport has been selected as the
h ead q u arters fo r Iow a by a Chicago in ­
vestm ent banking house, the F irs t Illi­
nois Company, the sta te agency here to
be in charge of Byron E. H eitzm an, man-

Corporate
Building Bonds
I
W e have a limited number of copies of
an attractive illustrated booklet which
describes these bonds in a comprehensive manner. W e will be pleased
to furnish you a copy on request.

■

"

RW. CHAPMAN & CO.,INC
170 W. M onroe S t.
CHICAGO


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

42 Cedar S treet
NEW YORK

B. E. H EITZM A N

ager for Iowa, and Clinton E. H entrich,
his assistan t.
This com pany is one of th e well-known
reliable bond houses doing a large busi­
ness in the investm ent field. I t p artici­
p ates in and originates bonds of the high-

October, 1926

THE

est class dealing in a diversified list in­
cluding governm ent, m unicipal, indus­
tria l, public u tility and first m ortgage
real estate bonds. Its clientele consists
of banks, investm ent houses and in d i­
vidual investors. The establishm ent of
the sta te agency in D avenport is in line
w ith its program of expansion now be­
ing carried on so as to be in a b e tte r posi­
tion to care fo r the increased business
coming from the Iow a te rrito ry . All
salesm en of the sta te w ill be under the
supervision of the D avenport office.
• B oth young men in charge of this dis­
tric t are D avenport bankers, having been
connected w ith the Union Savings and
T rust Company.
Mr. H eitzm an came to D avenport about
five years ago as m anager of the Business
extension departm ent of S cott County
Savings B ank, and since the consolida­
tion has acted in the same capacity fo r
the U nion Savings B ank and T ru st Com­
pany. H e is well know n in banking cir­
cles, having w ritte n m any articles fo r
bank publications, and appeared on pro­
gram s a t several conventions.

NORTHWESTERN

53

BANKER

F o r the y ear 1925 expenditures of the
forty -eig h t states am ounted to $1,614,562,230. In 1917 the expenses of the
sta te s am ounted to $517,503,220. The
increase in the p ast eight years has been
over 211 p er cent.

tenance of highw ays, 13.9 p er cen t; gen­
eral governm ent, 8.3 per c e n t; m iscellane­
ous, 23.1 per cent.
New construction and m aintenance of
highw ays to g eth er took $625,700,000 in
1925. Of this am ount license fees p ro ­
vided $198,710,310 and gasoline taxes
$87,353,194, leaving $339,636,496 of the
m otor car bill to be tak en care of by other
form s of tax atio n or through bond issues.
Tw enty-six sta te s reduced th e ir indebted­
ness during 1925, b ut borrow ings by the
others raised the aggregate debt of all
the states by $118,683,000.—From Bond
B riefs, Chicago T rust Company.

I t m ay be in te restin g to know fo r w hat
these large sums are being spent. In
1925 p erm anent im provem ents absorbed
$579,084,195 or 35 p er cent. Of th is 83.2
per cent was expended on highw ays. The
$1,035,478,035 used by the sta te s fo r ru n ­
ning expenses was d istrib u ted roughly as
fo llo w s: education, 38.4 p er c e n t; ch a ri­
ties and correction, 16.3 p er cen t; m ain­

Safe
Investm ents
The safest investm ents are those whose paym ents of principal
and in terest depend on taxes collected. Of this type are

Illinois Special Im provem ent Bonds
Local Im provem ent Bonds are recognized as a proper investm ent
fo r N ational, S tate, and Savings bank funds.
Write for Particulars

H. I. F oskett
BONDS
SHENANDOAH

IOWA

L a w re n c e S te rn and C o m p a n y
231 South LaSalle Street • Chicago
BOARD
CLINTO N H E N T R IC H

M r. H en trich is a native D avenporter
and has lived here all-of his life. H e was
form erly te lle r in the savings departm ent
of S cott County Savings Bank, and since
the consolidation of this bank w ith the
U nion-D avenport, has held a sim ilar posi­
tion w ith the U nion Savings B ank and
T ru st Company.
The Cost of State Government
The D epartm ent of Commerce has re ­
cently issued a rep o rt show ing the cost
of sta te governm ent in the U nited S tates.

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

OF D IR E C TO R S
CHARLES A. McCULLOCH, P resi­
dent of The Parm elee Company
JOHN HERTZ, Chairman of the
Board of Y ellow Truck & Coach
M anufacturing Co.
HERBERT L. STERN, President of
Balaban & Katz Corporation
A LFRED ETTLINGER, V ice P resi­
dent
JO SEPH J. RICE, V ice President
LAW RENCE STERN, President

W ILLIAM WRIGLEY JR ., Chairman
of the Board of W illiam W rigley Jr.,
Company.
JOHN R,, THOMPSON, Chairman of
the Board of John R. Thompson
Company
ALBERT D. LASKER, Chairman of
the Board Lord and Thomas and
Logan
STU Y V ESA N T PEABODY, President
of Peabody Coal Company

a

This company conducts a general securities business, originating
and participating in high-grade investment issues and devoting
special attention to first mortgage real estate bonds

THE

54

NORTHWESTERN

October, 1926

BANKER

W hat the Joint Stock Land Banks
Are Doing
By

Robert J, Koeppe

P resident, Koeppe, Langston, Loper & Co., Chicago
miiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiimuiiiiiiiimmiimtiiiimiimmiiimiiiiiiimiiimiiiiiiiitiiiiiiiiuii

Safety
A ssu red
Visualization of the
property holdings of the
Cities Service Company
and subsidiaries on the
A m e r i c a n Continent
alone, will overcome any
hesitancy as to placing
bank reserve f u n d s
where high yield is
offered.
The security of your
investment i n Cities
Service Securities ex­
pands with the inevit­
able growth of American
communities.
Present Assets Over
$ 6 0 9 ,0 0 0 ,0 0 0

Editor’s Note: This is the first of a
series of three articles giving details of
the history, organization, and methods
of operation of the Joint Stock Land
Banks. Other articles will follow in
our November and December issues.
iitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiimiuiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiim

O INT Stock Land Banks, while com­
paratively new to this country, have
been in successful operation abroad
fo r the last century or more, and demand
the attention of every banker in this coun­
try. They certainly deserve recognition
when it is considered th at through them
the farm er no longer has to contend with
the loan shark which infested this country
prior to the act authorizing the form ation
of these banks.
Plan of Organization
The Federal F arm Loan Board, created
ten years ago under the F arm Loan Act,
and operating under the jurisdiction of
the U. S. T reasury D epartm ent, author­
izes the form ation of corporations to be
known as Jo in t Stock Land Banks fo r
carrying on the business of lending on
farm m ortgage security and issuing farm

J

loan bonds, by any num ber of n atural
persons, but not less than ten.
Each bank is operated by a Board of
D irectors of not less th an five members
and the capitalization m ust be at least
$250,000 fully subscribed, one-half thereof
paid in cash and the balance subject to
call by the D irectors. Each Jo in t Stock
Land Bank shall have authority to issue
bonds based upon m ortgages taken by it in
accordance w ith the term s of the F arm
Loan Act, and such bonds can be issued
to the extent of fifteen times its capital­
ization, but before this can be done the
capital m ust be fully paid in.
Jo in t Stock Land Banks shall in no
case charge a ra te of interest on farm
loans exceeding by one p er cent the rate
of interest established fo r the last series
of bonds issued by them, and in no case
may they demand or receive any commis­
sion or charge not specifically authorized.
From the foregoing it wTill be seen th at
being empowered to issue bonds to an
am ount of fifteen times the capital, at a
differential of 1 p er cent, and also w ith
the cap ital itself loaned out a t 6 p er cent,
the banks have a potential gross earning
power of 21 p er cent.

A Complete Investment Service
Com m ercial Paper and B onds

t
V \ V . V . V . V . , . V . V . ,. ,. ,. V . , . V . V . V . ,. V

N o te a n d B o n d L istin g s
S en t U pon R equest

Clients of this firm are able to
obtain fr o m one source the type
of security best suited to their
current condition and need.

SE C U R IT IE S D E PA R T M E N T

H e m ’V S h h e r t y

& C om pany

(60 W A LL S T \A - A / N E W YORK,
BRANCHESIN\^-A-^XpRINCIPAICITIES
IOW A DIVISIONAL. O F FIC E S
D es M oines
318 L iberty B uild ing
Sioux City
507 F rancis B uild ing

LANE, R OLOSON & CO., Inc.
209 South La Salle Street, Chicago

Cedar B apids
1129 M erchants N ation al B ank
D avenport
721 F irst N ation al E ank B uild ing


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

LANE, PIPER & JAFFRAY, Inc.
M in n e a p o lis

S t. P a u l

R o ch ester

M a n k a to

F argo

October, 1926

THE

Method of Operation
The banks obtain their loans through
local banks located in the districts of the
two states in which they operate. These
local bankers first pass on the value of the
farm to be m ortgaged and make their
recommendation to the Jo in t Stock Land
Bank, which then has its own experienced
agents make their examinations. U nder
the Federal F a rm Loan Act, the farm
m ust be fu rth e r appraised by one of the
F ederal A ppraisers fo r the district.
The loan m ay not exceed 50 p er cent
of the accepted appraised value of the
land and 20 p e r cent of the perm anent
insured im provem ents thereon. In no
case m ay a loan exceed $100 per acre,
no r a to ta l am ount of $50,000. The loan
m ust be a first m ortgage fo r th irty three years, bearing in te rest a t 1 per
cent more than the coupon ra te of the
land bank bonds sold to provide the money,
and carry in g an ad ditional paym ent of 1
per cent. This additional pavm ent of
1 p er cent serves to com pletely ex tin ­
guish the loan in thirty-three years, so
th a t the farm er never faces repaym ent of
the principal a t a ra te of more th a n 1
p er cent p er year.
H istory
The first bank received its c h a rte r A pril
24, 1917, and others were subsequently
issued until on Ju n e 30, 1926, fifty-seven
banks were in operation.
By the term s of the act, bonds issued by
the banks were declared exempt from all
F ederal, S tate and local taxation. In
order to test the validity of this clause, a
test suit was entered in the U nited States
Suprem e Court in midsummer 1919, and
in March, 1921, decision was rendered de­
claring these bonds exempt from all ta x a­
tion. D uring this period of almost two
years, all banks rem ained practically dor­
m ant so f a r as the m aking of loans was
concerned.
To illustrate the trem endous growth of
these banks in the nine years in which
they have been in operation, less practic­
ally two years while aw aiting the Supreme
C ourt’s decision, the following figures are
quoted covering the entire system as of
Ju ly 1, 1926. Total assets: $654,598,627.01; net m ortgage loans, $605,718,039.86; fa rm loan bonds outstanding,
$579,294,000.00.
H aving digested these enormous figures,
the reader will appreciate the im portant
position these banks occupy in the financ­
ing of the A m erican farm er, and will
ju stify the statem ent made in the begin­
ning of this article th at they demand the
attention of every banker in this country.
Some interesting facts are obtained by
com paring the latest figures of the Jo in t
Stock Land Banks w ith those of the F ed ­
eral Land Banks, the two largest systems
created under the F ederal F arm Loan Act.
F o r the seven months ending Ju ly 31,
1926, the net mortgage loans of Jo in t
Stock L and Banks increased $60,158,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

55
/

Proving It with Dollars
Every security which we offer to our
banking clients is one in which we
have already invested our own funds.
Write for circular listing
special offerings for banks

Ha r r y H.Po

Co .

l k

1N C O R P O R A T E D

Investment Securities
Equitable Bldg.

D es M oines

A Simple Test
In buying fo reig n bonds, a sim ple test
which anyone m ay apply is to m easure the
economic progress of foreign countries in
the lig h t of the following points. They con­
stitu te, in th e order of im portance, the five
principal stages of economic reconstruction
which every nation m ust undergo to make
its bond issues sound investm ents.
1.
2.
3.
4.
5.

Stable Governm ent
D eterm ination of Debt
B alancing the Budget
S tabilization of Currency
R eorganization of In d u stry

Baker, Kellogg & Company, Inc., th o r­
oughly analyze, acocrding to the above
form ula, all foreign issues offered in this
m arket.

A n y inquiries you m ay have in re­
gard to F O R E IG N B O N D S will
receive our m ost careful attention.

BAKER, KELLOGG 6? CO., Inc.
A SPECIALIZED SERVICE IN FOREIGN SECURITIES FOR
B A N K S and DEALERS

N EW Y O R K
LON D O N

111 West Monroe Street
Chicago
TELEPHONE RANDOLPH 0415

D E T R O IT
B U E N O S A IR E S

THE

56

NORTHWESTERN

W anted:
Sales Representative
An Unusual Opportunity For a
Successful Man Preferably w th
Banking or Inrestment Experience
E wish to secure, as our representative in territory now open, in Iowa,
Illinois or nearby states, a well known and responsible local business
man, preferably one who has had previous experience in banking or in the
sale of investment securities.

W

The man we select will receive a liberal salary and commission and will be
assisted by carefully planned mail and gereral advertising. As we originate
a considerable volume of financing in addition to participating in the more
important syndicates, he will be able to offer his clientele a widely diversified
list, including public utility, industrial, real estate and municipal bonds,
thus meeting the requirements of all types of investors.
We shall be pleased to interview any applicant whose letter indicates that
he possesses the necessary qualifications. State age, experience, local con­
tacts and reasons for believing you could successfully market high grade
investment securities. Your application will be held in confidence.

D e W olf & C o m p a n y , in c .
Inrestment Bonds — Established 1889
S. W . C o rn e r M o n ro e & D e arb o rn Sts.
C H IC A G O

Joint Stock Land Bank
Stocks
Are they a purchase at
present levels?
Comparative table and
summary of new rules
which may affect divi­
d e n d s an d m a rk et
action of these stocks
sent on request.

KOEPPE
LANGSTON, LOPER

CO.

39 South La Salle Street
C H IC A G O
Specialists in Joint Stock Land Bank Securities
------------------------------------------ --------- --------------------------------------------


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

BANKER

October, 1926

839.00 as against $42,590,236.00 increase
by the F ederal Land Banks. Reserves,
surplus and undivided profits of Jo in t
Stock L and Banks increased to $11,313,544.00 during the same period, a gain of
$1,229,388.00, while the reserves, etc., of
the F ederal Land Banks dropped $660,613.00 to $12,104,499.00.
The Jo in t
Stock Land Banks with $597,294,000.00
bonds outstanding, have built up reserves
of $11,313,544.00, a m argin of 1.95 per
cent, w hereas the F ed eral L and Banks
with $1,046,438,715.00 bonds outstanding
have built up reserves of $12,101,499.00,
a m argin of 1.16 p er cent. C apital as­
sets as of Ju ly 31, 1926, of the Jo in t
Stock Land Banks were $55,217,565.00,
a m argin of 9.53 p er cent on th e bonds
outstanding.
Present Conditions
Due to the severe depression in A m eri­
can agriculture during the last few years,
many o f these banks were forced to fore­
close on farm s where delinquency of p ay ­
ments had occurred. However, we find
at the present time th a t the enforced ac­
quisition of farm s through foreclosure by
the Jo in t Stock Land Banks should be a p ­
proaching the end, and general opinion is
th at the deflation in farm lands which has
been going on fo r several years is com­
pleted, and w ith the exception of some
sections in the northw est the values are
stabilized, or are showing a tendency to
advance. W hereas a few months ago it
was almost impossible to sell farm lands,
buyers are now appearing, and foreclosed
farm s are gradually being disposed of.
The fact th at these banks have been
able to pass through the w orst depression
in A m erican agriculture proves the fu n ­
dam ental soundness of these institutions,
and the recent modified rulings of the
Federal F arm Loan Board should enable
them to gradually liquidate th eir real
estate w ithout undue hardship to either
the banks or their stockholders.
Treasury Loans and Investments
T h at the tre a su ry ’s offering of so con­
siderable a sum in nine m onths’ 3^2 Per
cent notes as $350,000,000 should have
been covered n early three tim es by the
applications,
n o tw ith stan d in g W a l l
S tre e t’s ta lk of higher money, is an in te r­
esting sign of the times.
I t is nearly three years since such an
oversubscription was obtained fo r a gov­
ernm ent lo an ; y et the ra te o f in terest
borne by th e trea su ry certificates is sub­
sta n tia lly low er th a n eith er the reserve
bank ra te or the ra te fo r high-grade loans
on the open W all S tre et m arket.
No doubt th is result, like the sm aller
oversubscription to the th irty -y e a r 3%
per cents offered la st M arch, is prim arily
w itness to the governm ent’s risin g c re d it;
b u t it m ust also be accepted as proof of
an exceptionally large available supply
of A m erican investm ent capital.

October, 1926

THE

This inference is borne out by the m ar­
ket fo r o th e r investm ent bonds.
M any high-grade corporation bonds,
both railw ay and in d u stria l corporations,
have been selling on the stock exchange
a t higher prices th a n they brought in
1913; some of them yield only 4 or 4 ^
p er cent to the investor a t p resent prices.
This would be recognized more readily
as an inevitable resu lt of the cou n try ’s
adm itted w ealth and p rosperity, if it w ere
not fo r the prevalent theory th a t a fall'
in the purchasing pow er of money, re ­
flected in average prices about 32 p er cent
higher than in prew ar days, ought tra d i­
tionally to call fo r a larger yield on fixed
investm ents.
In E uropean m arkets bond values have
sunk progressively while values of stocks
have risen.
T hat result is in fact unavoidable with
a depreciated currency irredeem able in
gold, b u t it does not follow in the case
of a currency whose gold value is m ain­
tained.
U nder such conditions the price and
yield of high-grade investm ent securities
is necessarily governed by the com­
m unity’s investing capacity and by the
cost of money in the open m arket.
The p resen t W all S tre et money ra te is
higher th a n in 1925 or 1924, b u t it is dis­
tin c tly low er th a n in prosperous years
before the w ar, and the available supply
of investm ent cap ital in this country is
indisputably f a r g re a te r th an in th a t
period.
P robably, however, the absence of use
o f cred it on a rap id ly increasing scale
and in a speculative way fo r purposes of
trad e has been an im p o rtan t influence,
directly and indirectly, in determ ining
values fo r all fixed-revenue securities.—
New Y ork Times.
Receiver for G. L. Miller & Company
G. L. M iller & Company, one of the
largest m ortgage bond houses in this
country, w ent into equity receivership
Septem ber 3d.
The com plaint, Joseph L. Goodman,
who applied fo r the receivership, lists
the liabilities of the corporations a t $ 6 ,915,324 and assets a t $9,636,987, consist­
ing of bonds held fo r sale a t par, $4,657,100; notes and accounts receivable, $3,479,496; stocks and securities including
the investm ent in the subsidiary corpora­
tion, $713,723; certificates of deposit,
$500,000; cash on hand, $100,000; bonds
placed fo r sale a t par, $ 100 ,0 0 0 ; fu rn itu re
and fixtures, $56,667, and accrued in te r­
est, $30,000.
G. L. M iller & Company had its origin
in the real estate business conducted
years ago by George L. M iller in and
about Miami, F lorida.
Mr. M iller branched out as a m ortgage
b roker and eventually financed the con­
stru ctio n of hotels and ap a rtm en t houses
in F lorida. Succeeding there, he moved
on to A tla n ta, establishing the house of

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

NORTHWESTERN

BANKER

57

W. I). H an n a and C om pan y
In corporated

announces the removal of its home offices
to enlarged quarters

Entire Second Floor, Bock Building
308 North Third Street
Burlington, Iowa
P ioneer Bank Bldg.
W aterloo, Iowa

Muscatine State Bank Bldg.
Muscatine, Iowa

Security Life Bldg.
Lincoln, Neb.

A series of six ads, each giving
one reason for the superiority of
Fidelity First Mortgage Real Es­
tate Gold Bonds. The others a re Experience. Investigation, Ap­
praisals, Safe-Guards, Guarantee.

{

Security

The safety of every Fidelity First Mortgage Real Estate
Gold Bond is secured in three w a y s; by physical security, by a
rigid policy of conservatism and by unconditional guarantee of
payment of principal and interest.
W hen a Fidelity loan is made, a closed first mortgage is
taken on the land (in fee not leasehold) building and equip­
ment. This mortgage also includes a First Lien on the income
from the building; so that the investor in Fidelity Bonds has
first claim on the money earned by the owners.
The investm ent is further secured by our unbreakable rule
never to loan in excess of 60 per cent of the actual property
value, by our building and financing experience, by our repu­
tation for integrity and finally by our unconditional guarantee
as to payment of principal and interest of every Fidelity Bond
at maturity.
For the bank’s own funds as well as its clients’ savings,
Fidelity Bonds represent an investm ent unexcelled in yield and
safety.

Denominations $100, $500, $1,000

Fi d e l i t y

.1. BOND ^MORTGAGE CO. J .
J .U . M E N T E E R .P resid e n t

Room 1182
N ew York Life Bldg.
Chicago, 111.

IN C O R P O R A T E D 1913

FIDELITY
GUARANTEED
BONDS

St. Louis— Denver

Fidelity Guarantees Every Bond

JR831

58

THE

NORTHWESTERN

Sound Public Utility
BONDS
Rate

&

Yield

. 5s

19 5 6 4 -95 %

L ig h t C o . . . 5s

1954 5-50%

W e s t P en n P o w e r C om pany
Florida P o w e r

Due

Iow a S outhern U tilitie s C o. . . 5 | s 19 5 0 5-70%
Southw est U tility Ice C o.

. . .

6s

1941 6 .2 5 %

Circulars on Request

H

o a gla n d

,A

l

October, 1926

G. L. M iller & Company, but not ab an ­
doning his F lo rid a activities. The la tte r
continued to be conducted by the G. L.
M iller Bond & M ortgage Company.
The com pany m aintained tw enty branch
offices and in addition had more th a n 500
agencies thro u g h o u t th is country and
E urope fo r d istrib u tio n of its bonds..
I ts operations extended throughout the
South, N orth, and M iddle W est, th e cor­
poration having u n d erw ritte n bond issues
fo r approxim ately 150 stru ctu re s located
in 58 cities in 16 states, and aggregating
about $70,000,000 in value. The firm is
understood to have approxim ately 21,000
customers.
Twice the w orld has been free o f racial
h a tr e d : when A dam was a young fellow,
and when Noah came out of the ark .—
Pueblo Star-Journal.
BOTH SIDES OF THE STORY
(C ontinued from page 15)

LUM 6? ( 6 .

Established 1909 — Incorporated

14 S. La Salle St.
CHICAGO

BANKER

34 Pine St.
N E W YORK

S tate G u aran ty F u n d should be reim ­
bursed to some extent, a t least, to prop­
erly d istrib u te the cost of the protection
given. The people of the state and all
business in terests have profited through
this G uaran ty F u n d protection, and as
a m a tte r of fairn ess and justice, the cost
should be spread over the sta te and not
be borne en tirely by the state banks.”

PRO TECTIO N SHOULD
BE OPTIONAL

C a re fu lly Selected
Investm ents
Illinois C entral R ailroad
Debentures 4%s, 1966
Sierra Pacific Electric Company
Notes 5s, 1929

Price

To Yield
About

961/2

4.95%

(19.73

5.10%

M onm outh Consolidated W ater Company
1 st Mortgage 5s, 1956

95

5.35%

Iowa Southern U tilities Company
F irst and R efunding 5 ^/28, 1950

971/2

5.70%

M innesota & O ntario P ap er Company
F irst Mortgage 6s, 1945

981/2

6 .10 %

V

Bond Departm ent

.. /

Chicago Trust Company
LUCIUS TETER
P resid en t

.

JOHN W. O’LEARY
V ice P resid en t

S o u th e a s t C o rn e r M o n ro e a n d C la rk S tr e e ts

CHICAGO

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Federal Reserve Bank of St. Louis

“I approve of the idea of g u aran tin g
deposits, b u t it is too much of a burden
fo r stockholders alone to bear indefi­
nitely. Since the bank depositors are
the m ain beneficiaries of the protection
given, they should bear the b u rd e n ; in
other words, assessm ents should be
levied on the depositors.
~ “I t m ight be le ft to th e ir own choice,
if they w ant the protection, they m ight
deposit th e ir fu n d s subject to assessm ent;
if they do not care about sh arin g in the
g u ara n ty protection, they m ight deposit
in the same bank (state b an k s), not sub­
ject to assessm ent.
“D eposit g u aran ty is nothing more th an
insurance. In other kinds of insurance
the insured pays his prem ium s commen­
su rate w ith the losses likely to occur ex­
cept th a t in all m utual insurance plans
he is subject to assessm ents. An o rdi­
n ary stock com pany has the pow er to
fix prem ium rates, b u t the bank has no
such pow er to m ake any collection from
th e insured, the depositors of the b an k ;
therefore, I contend the depositors should
be assessed.
“ Our bank has paid, fo r six years, an
average of 10 p er cent p er annum of its
capital and often 100 per cent of its earn­
ings. H ad this been passed on to the de­
positors, it would have am ounted to less
th an 1 p er cent.”

October, 1926

THE

NORTHW ESTERN

59

BANKER

IS A MUTUAL INSURANCE
PRO PO SITIO N
“ The guiding principle of the Deposi­
to r’s G uaranty Law of N ebraska, is one
of m utual insurance, and m utual in su r­
ance is alw ays good w here no b e tte r kind
is available.
“ The operation of this law in N ebraska
has been the m eans of saving m any N e­
braska business men and farm ers from
financial ru in and b ankruptcy by avoid­
ing losses to depositors and keeping in ­
ta c t and in circulation the usual and
m axim um deposit of the state. True, the
loss in failed or insolvent banks is ju st
as large, w hether th a t loss is stood by
the depositors of the bank, or paid by the
operation of the G uaranty Law, b u t the
d istrib u tio n of the loss u nder the opera­
tion of th e G uaranty Law, m aking it
statew ide instead of local, is the fea tu re
of the law which holds the confidence of
the depositing public in the sta te banks
of N ebraska.
“ W hat the fu tu re holds in store fo r a
people in any period of deflation no one
can tell, b u t having had some banking
experience in Iow a during the p ast three
years, the w rite r is of the opinion Ne­
b raska sta te bankers are much b e tte r off
under our presen t G uaranty Law than
w ithout it, and w ith a few needed
changes in the law can be relieved of
w hat now seems to be a burden to some
of them.
“Those sta te s w ishing to consider a law
g u aranteeing deposits in th e ir sta te banks
would do well to take the N ebraska act
fo r th e ir foundation, b u t not w ith the
thought the law is perfect. O ur law is
functioning well, but some needed
changes would relieve the bankers of the
sta te of some of the burden, w hich is the
principal objection to the law. As I
view the m a tte r th ree changes in our
present law would remove most, if not all,
of the objections to it, take it our of
politics, and smooth up its operation.
They a r e :
Reduce Interest on Deposits
“1. U nder all other form s of in su r­
ance w ith which I am fam iliar, the in ­
sured pays the prem ium . U nder the De­
positor’s G uaranty Law of N ebraska, the
depositor is insured w ithout charge, and
in addition is paid the usual in te rest rate
of 4 p er cent per annum on tim e and
savings deposits. I would suggest the
ra te of in te rest on such deposits be re ­
duced 1 p er cent p er annum in considera­
tion of this protection, and th a t the rate
be fixed by law. This 1 per cent savings
in in te re st on the tim e deposits in the
sta te banks of N ebraska would pay a
large p er cent of the assessm ent fo r the
G uaranty F und, which as a maximum an ­
nual charge is .6 of 1 per cent of the
average to ta l deposits.

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Federal Reserve Bank of St. Louis

S ecu rity B uyers
have found that they can
depend upon our lists for
quotations on sound invest'
ments of a type to meet
their strictest requirements.

I

Y ou , too, w ill be in ­
terested in our lis t
------Ask for i t --------

3

L. H. Davis , R esiden t Manager
T e le p h o n e M a r k e t 315
526 L ib e r t y B u ild in g , Des M oines

T he Br o w n -

W IC H IT A

er . Co m pany

K A N SA S
D a lla s
Los A ng eles

C h ic a g o
K a n s a s C ity

S t. P a u l
Topeka

SOUND BONDS
FOR

BANK

INVESTMENT

The First National Company of Iowa
Hanford MacNider, President
MASON CITY
Security Building
Cedar Rapids

Valley National Bank Building
Des Moines

60

THE

NORTHWESTERN

BANKER

W e have a notable selection
of six m o n th s’ to four-year
N o te s and B onds re c o m ­
m ended for bank investm ent.
WRITE FOR LIST

QUAIL €

C U N ljy .

UVC

w
BONDS FOR INVESTMENT

First National Bank Bldg.
DAVENPORT, IOWA

S

a

f

29 South La Salle St.
CHICAGO

e

B

o

n

d

s

for Bank Investment
O N G experience; wide banking con­
tact and efficient investment fa ­
cilities, provide a proper guide to safe
investment.
These factors, coupled with a desire
to be of service, characterize our in­
vestment recommendations.

BOND DEPARTMENT

Cen tr a l Sta te Ba n k
OF DES MOINES
Banking, Trusts and Investments
Safe Deposit Vaults
Member


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Federal Reserve Bank of St. Louis

Federal

Reserve

System

October, 1926

Remove Operation from Politics
“2. The operation of this sort of a law
is too im p o rtan t and productive of too
much good, to be used as a football fo r
the different political p arties, and th e re­
fore, should have business, and not po liti­
cal, supervision. To do this the law
should be supervised by a G uaran ty F und
Commission of not less th an seven (7)
members elected by the bankers them ­
selves from a like num ber of d istricts into
which the sta te should be divided, and
in which the bankers should hold th eir
group m eetings and elections. Such com­
m issioners should be su b ject to recall.
This will m ake the commission answerable to the bankers of the state, instead
of the political p a rty responsible fo r the
appointm ent of such commissioners.
“3. U nder the D epositors G uaranty
Law of N ebraska we have this question of
‘divided au th o rity ’ to contend w ith. The
secretary of the D epartm ent of T rade
and Commerce, in addition to num erous
other duties, has charge of all of the sol­
vent banks, while the G uaran ty F u n d
Commission (7 m em bers) has charge of
the insolvent banks and receiverships.
The line betw een solvent and insolvent
banks is, of course, m easured w ith a
political rule, p olitical influence, pulls,
and the m any o th er things which en ter
into the business of politics. U nder a
commission form of supervision o f banks
the organization would have the benefits
derived from a personal acquaintance of
a com missioner w ith m ost every banker
in his d istric t and from such acquaintance
would know w hether or not the bank was
being conducted in a safe or unsafe
m anner.
U nder our present law the
G uaran ty F u n d Commission has no
au th o rity u n til a bank is tu rn ed over to
it. ‘Medical aid ’ which the commission
is p rep ared to give, sometimes is denied
u n til the p a tie n t is dead, on account of
divided au th o rity . I th erefo re, suggest a
law w ith a single au th o rity fo r the su p er­
vision of banks, and I believe all will
agree w ith me th a t the job is too big and
too much responsibility fo r any one man.
“ The w riter has been in the banking
business in N ebraska fo r th e p a s t 35
years, alm ost continually, and owned
th ree banks a t the tim e our D epositor’s
Law was passed. Yes, I fought it. W as
opposed to ‘digging u p ’ fo r the dub who
could not keep his bank clean, etc., etc.
I am fo r it now, though. A N ebraska
banker can spend all his tim e looking
a f te r his note case, instead of spending it
all try in g to convince his depositors his
bank is safe and sound, and no cause fo r
a run on him.
A D epositors G uaran ty Law is w ork­
able, and too, w ithout hardships on any
one, or the banks which co ntribute the
fund, and when the bankers see the light
they will no longer ask th e depositing
public to lose th e ir money by reason of
th e ir own inefficiency, inexperience, or
dishonesty.”

October, 1926

THE

NORTHWESTERN

61

BANKER

PLAN NEEDS SEVERAL
AMENDMENTS

A.

“ The principles and operation of this
law will be good to our m ind a f te r there
have been a few am endm ents m ade to
the law as it now stands. I t now looks
as though the banks of this sta te will
be reduced to the num ber they should
have been fo r several years past. To my
m ind the g rea test draw back, and the only
loss, or nearly so, which has been sus­
tain ed has been caused by too m any
banks and men allowed to go into the
business w ithout any previous exper­
ience. These men not know ing w hat
they would be able to offer th e ir cus­
tom ers have overstepped them selves and
have caused the men who have been in
the business fo r years to not only m ake
no money out of th e ir business, b u t have
forced them a t tim es to get very near
to the place w here they them selves would
be on th e p o in t of m aking bad deals.
“I believe the law is on the books of
this state to stay, as there is no doubt
b u t th a t it is the law the people of the
sta te w ant, and they w ill be satisfied
w ith nothing less, b u t there are still some
am endm ents to be made to it before it
will w ork the w ay I th in k it should.
“I th in k the pro p er w ay to have the
law w ork is to have the g u ara n ty to cover
but 85 p er cent of the certificates, those
being in the n atu re of an investm ent, and
then in doing this you will have the m oral
support of the com m unity in the event
of the failu re of a bank, w here as it now
is, when a bank fails, the com m unity
knows they w ill receive all th e ir money,
and have been know n a t tim es in this
sta te to w ork against the receiver of the
bank, thereby causing the other banks to
su stain a g re a te r loss th an they should,
and by doing this the people before de­
positing th e ir money in a bank will m ake
some inquiry as to how the business of
the bank is conducted, and the length of
experience th e officers of the bank have
had.
“I would also suggest th a t the banks of
the sta te have some say as to who is a p ­
pointed bank exam iners, thereby ta k in g
it out of politics as it now is in th is state,
fo r you are very a p t to get poor exam ­
iners when the governor is paying off
some political obligations, which has been
know n to happen in this state.
“ Since they have changed the law and
reduced the am ount we can be assessed
each year, the bankers seem to be b e tte r
satisfied w ith the w orking of the law.
“W e believe the law has been a benefit
to the com m unity, as the people who
place th e ir money in the banks feel they
are safe.”
The only banks th a t am ount to any­
thin g in R ussia now are th e m ounte­
banks.—W ashington Post.

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

J.BoJdt & Company
PUTNAM BUILDING

DAVENPORT

BO N D S FO R
C O N S E R V A T IV E
IN V E S T M E N T

G

eneral

M

A ccepta nce C o

otors
r p o r a t io n

E x ecu tive Offices:

2 5 0 W e s t 5 7 t h S tr e e t, N e w Y o r k C i t y

obligations of this institution are selectJL e d as appropriate and sound mediums for
short term investment by a large banking clientele.
They may be obtained in convenient denomina­
tions and suitable maturities.

r I

1H E

D IR E C T O R S
A lfre d H . S w a y n e ,. .C h a ir m a n — V ice P re sid e n t, G eneral
M o to rs C o rp o ra tio n
C u rtis

C. Cooper. . .

P re s id e n t

A lb e rt L . D e a n e . . . V ic e P re s id e n t
P ie rre S . d u P o n t . . . C h a irm a n , G en eral M o to rs C o r p o ra tio n
a n d E . I . d u P o n t de N e m o u rs & Co.
L a m m o t d u P o n t. . .F in a n c e C o m m ittee,
C o rp o ra tio n .
0.

H.

G en eral M o to r s

P . L a F a rg e . .G en eral M o to rs C o rp o ra tio n

S e w a rd P r o s s e r . . . . C h a irm a n , B a n k e rs
N ew Y o rk

T ru st C o m p a n y

John J . R askob. . . .C h a ir m a n , F in a n c e C o m m itte e ,
G en eral M o to r s C o rp o ra tio n
A lfr e d P . S lo a n , J r . P re s id e n t, G en era l M o to r s C o r p o ra tio n
J o h n J . S ch u m a n n , J r . V i c e P re sid e n t
D o n a ld M . S p a id a l. V ic e P re s id e n t

I !

m

62

THE

NORTHWESTERN

BANKER

October, 1926

A Plan of Profit—
For the B anker
For His C o m m u n ity
The International Life Insurance Company has a bank agency plan which
includes not only the element of profit for your bank, and service from
this Company, but also profit for YOUR COMMUNITY.
It calls for—
1. A direct profit to eligible banks from deposits placed in the bank.
2. A profitable commission contract.
3. A complete and up-to-date line of life insurance policies, both
standard and sub-standard.

W. K. WHITFIELD
President

4. Consistent cooperation from this Company in the closing of
business.

DAVID W. HILL
Vice President

5. A n

W. F. GRANTGES
Vice President and General
Manager Agents

a c t i v e p a r t in

t h e b u ild in g o f y o u r

c o m m u n it y

th r o u g h

th e

in v e s t m e n t o f t h i s C o m p a n y ’s f u n d s .

International Life Insurance Co.
St. Louis, Missouri

Iowa bankers should do business with this strong Iowa
company, which has gained a country-wide reputation
as a “National Institution of Service.”
The Federal Surety Company is managed by experi­
enced underwriters, and has from its conception built
for STRENGTH rather than size.
Backed by Federal Service, these lines are written—
Accident and Health, Automobile, Burglary, Plate
Glass, Public Liability and Workmen’s Compensation
Insurance, and Surety Bonds.

FED ER A L SU R E T Y
CASUALTY INSURAN CE

COM PANY
SURETY BONDS

W. L. TAYLOR, Vice President and General Manager

HOME OFFICE


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Federal Reserve Bank of St. Louis

DAVENPORT, IOW A

October, 1926

;j

THE

NORTHWESTERN

BANKER

63

IN SU R A N C E SECTION

g fy g l|llg i|ll^ |llllllg ill^

Selling Life Insurance in the Rural Districts
B E L IE V E th a t a m an who has been
reared in a g rea t city and who has
never known anything of the joys of
living in the g rea t open spaces has missed
one of the g rea test things in life. I do
not believe th a t an agent who has solic­
ited business only in a city is as well
equipped to m eet all the acid tests of this
business as the agent who is rea re d in
the country and who has been privileged
to solicit country business. Because the
ru ra l d istric ts and sm all towns are not
thickly populated, the successful country
agent m ust sell people of m any classes.
He m ust be very alert and resourceful
if he expects to m atch his w its w ith those
of men whose line of thought runs in
m any different channels. H e m ust be
able to sell the m illion dollar b an k er as
well as the one thousand dollar farm er.
H is tra in in g is varied and of such a n a ­
ture th a t it w ill enable him to m eet a l­
most any situ atio n th a t m ay arise.

I

In the Old Days
I rem em ber quite well a few incidents
in my early experience in the life in su r­
ance business th a t w ill illu stra te to you
some of the m any different problem s th a t
once confronted the agent in a ru ra l te rr i­
tory.
These, however, were extrem e
cases.
Soon a f te r I received my early tr a in ­
ing (a ra te book and a swell le tte r from
Campbell & H a rt, general agents), a man
applied fo r a one thousand dollar policy.
F o r some stran g e reason, he did a very
unusual thing. W hen the policy arrived,
I took it to him fo r delivery and he told
me th a t he had decided n o t to join now
and th a t I could ju s t do w hatever I
w anted w ith th e policy. I told him th a t
I deeply reg retted his decision but th a t I
would dispose of the policy in the usual
m anner in such cases. H e, of course,
w anted to know w hat the usual m anner
was. I told him th a t I buried all untaken
policies. H e hesitated only a moment,
then looked me stra ig h t in the eye and
said, “I ’ll be dam ned if you bury my pol­
icy, so I ’ll ju s t take her.”
You know life insurance salesm en take
much fo r granted. Once I had talked
w ith a m an u n til both he and I were black
in the face, and seeing th a t he was ra th e r
groggy I decided th a t the g rea t psy­
chological moment, about which I had
read so much in Campbell & H a r t’s le t­
te r had arrived. So I took from my in ­
side coat pocket the precious blank, u n ­

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Federal Reserve Bank of St. Louis

ify J o s e p h S. M a r y m a n
A etn a L ife, L ittle Rock, A rka n sa s
(From address before In tern a tion a l Convention of
L ife U nderw riters, A tla n tic City)

“I believe that most salesmen talk too
much about subjects that have no bear­
ing on the sale. Many salesmen think
that a lot of talking must be done and
they do it regardless of the effect. I try
to boil my talk down where every sen­
tence has a real meaning that will in ter­
est the b u y er!”

folded it carefully, filled in the usual d ata
and handed it to him and told him to sign
it. H e looked a t me like he th o u g h t I
was a fool and to my susprise, said, “I
am so rry you spoiled th a t blank b u t 1
won’t tak e any today.” I tu rn ed to him
in am azem ent and told him th a t because
he had allowed me to fill out the blank, I
thought he was read y to buy, and now I
had spoiled th is fine application m ade of
sheeps skin, the finest parchm ent p ap er
to be had. H e then seemed asham ed of
him self and said, “ Since you’ve gone to
all th a t trouble, go ahead and fix it up.”
Another Reminiscence
I was soliciting a m an who bore a rep u ­
ta tio n of being insurance proof. H e was
very p rosperous; had one way pockets,
made lots of money, and never spent any.
A fte r a long b attle w ith him, he said,
“ T h at’s the finest proposition I ever saw
but I won’t tak e any today because it
would look foolish fo r me to p u t out all
th a t money when I am so badly in need
of a new p a ir of trousers. You see these
are patched n early all over.” I asked
him w hat size tro u sers he wore and he
told me 46-32. I jo tte d the size down in
a m em orandum book and said, “I ’ll bring
you down a fine p a ir of tro u sers from
L ittle Rock w ith th e policy.” H e said,
“W rite it up.” I delivered him a $10,000
policy along w ith the finest p a ir of $3
trou sers in L ittle Rock.
On another occasion, I was soliciting
a w ealthy old bachelor. H e said he was
a staunch believer in life insurance and
would buy $25,000 if he had someone to
leave it to. I happened to know th a t
single blessedness had begun to lose its
charm s fo r him, so I told him th a t I
knew a p re tty young widow whom I be­
lieved would be in terested in a g ran d old

m an and I believed 1 could throw in a
wife w ith the policy. H e said, “Young
man, brin g on your widow.” Believe it
or not, I brought on the widow. The
policy was w ritten , the beneficiary, again
a widow, receives a su b stan tia l check
each m onth and w ill continue to do so as
long as she lives.
There is no longer any country busi­
ness in the stric t in te rp re ta tio n of the
phrase—ru ra l bixsiness. Our a rtists still
picture a fa rm e r as being a g au n t gnarled
figure, very narrow betw een the eyes, as
well as under his flopped straw h at, h av­
ing a long chin w ith w hiskers to m atch,
and one would not glean th a t the a rtist
intended to convey the idea to the u p ­
tow n boys th a t he wTas a m an of average
intelligence or th a t he h ad the slightest
idea of w hat was going on outside the
rad iu s of two miles.
Today, this type of m an has passed on.
E ducation, good roads, radios, autom o­
biles, and airplanes have made it possible
for the m ain stre e t business m an or
farm er to be ju s t as well inform ed as his
city brother. As a class, I believe they
u n d erstan d and ap p reciate life insurance
more th an the people of th e big city.
A lthough the country m an has in m any
respects become more like the m an of the
city, he is honest, fra n k and sincere, and
does n ot h esita te to ask fo r any inform a­
tion th a t he desires, w hereas, the m an of
the city is asham ed to let the agent know
th a t he knows so little about life in su r­
ance. I f th e city agent, because of his
in ab ility to handle a city business, thinks
th a t he can tra n s fe r his activities to the
country w ith any degree of success, he
has a sad aw akening coming to him.
Methods That Count
As to my su b ject—“ C arrying the L ife
In su ran ce Message to the C ountry M an
F irs t, by being honest and sincere w ith
all men no m a tte r w hat th e ir statio n in
life m ay be. Confidence is one of our
g rea test forces. No m an can gain and
m ain tain the respect and confidence of
his clients unless he is honest w ith them
to the n th degree. I tr y alw ays to con­
duct m yself and my canvass so as to re­
flect upon the g rea t in stitu tio n of life in ­
surance the dignity th a t i t deserves.
I do not try h ap h azard m ethods, y et
I do not tr y to trac e my p rospects’
record back to the landing of the “M ay­
flower.”
I do not believe in elaborate systems,

64

TH E

B ack o f
Northwestern
Na t io n a l
A Strong Board
o f Directors
CLIVE T. JAFFRAY
D ire c to r a n d M em ber E xecutive
C om m ittee Since 1905
T. J a f f r a y is president

C

• of the “Soo Line” (Min­
neapolis, St. Paul, and Sault
Ste. Marie Railw ay), an im­
portant factor in Northwest
transportation, w i t h 4,400
miles of trackage. From 1917
until 1923 he was president
of the First National Bank.
Mr. Jaffray was born in
Berlin, Ontario, in 1865. He
entered the banking business
with the Merchants Bank of
Canada in 1882, coming to
Minneapolis in 1887, where
he obtained a clerical position
with the Northwestern Nation­
al Bank. He was assistant
cashier from 1891 to 1895,
when he left to go with the
First National as cashier, re­
ceiving the addional title of
vice president in 1905. In
1917 he was made president
of the First National Bank,
and in 1923 he was elected
president of the “Soo Line.”
T h is is N um ber 3 o f a
series o f nine advertise­
ments on the Board o f D i­
rectors o f N orthw estern . N a ­
tional L ife . E a ch m ember
has been em inently success­
fu l in business, and each is
in close touch w ith the a f­
fairs o f the Company, taking
an active part in its manage­

ment.

NORTHWESTERN
NATIONAL L IF E
INSURANCE CO.
.
S

O.J. Arnold,Pres.
M in n e a p o lis
i i, ,—


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Federal Reserve Bank of St. Louis

j
r

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

B A N K E R

yet I know th a t the agent should plan his
w ork so as to tak e advantage of his tim e,
so as not to w aste his tim e and energy
on people who are poor prospects. As a
m an becomes more experienced in this
business, he should be able to sep arate
the w heat from the chaff and spend p rac­
tically all his tim e on the w heat.
I believe th a t m ost salesm en ta lk too
much about subjects th a t have no bearing
upon the sale. M any men th in k th a t a
lot of talk in g m ust be done and they do
it regardless of the effect. I try to boil
my ta lk down where every sentence has
a real m eaning th a t will in te rest the
buyer.
Few men have a definite p lan in life
unless some diligent life insurance sales­
m an has helped them to m ake it. Few
salesm en can conduct an u n in te rru p te d
canvass which has a real definite object
in view from the outset. W hy not make
a short talk, all o f which is in terestin g
and sensible, th a n a long ram bling talk
w ith only an occasional good point in it,
the re st being w hat cereal m an u factu rers
call filler. In the first method, the buyer
does not react, b u t the fu rth e r the can­
vass goes, th e h ard e r sold he becomes,
thus giving a co n stan t o p p o rtu n ity fo r
the close. U ltim ately, the sale is easily
made, whereas, in the la tte r method,
about the tim e the buyer gets h alf sold,
the agent ram bles on and he gets unsold
and in the end in stead of the arriv al of
the much discussed psychological moment
and his nam e on th e dotted line, he gets
so fu ll of filler th a t the sale is lost.
Requires Vision
I t takes a m an of vision and im agina­
tion to m ake a good buyer of life in su r­
ance. Likewise, it tak es an agent of vis­
ion and im agination to become a real
salesm an. The fundam entals of th is busi­
ness are n ot founded upon p e tty cash
values, p aid up insurance, extended in ­
surance, and technical term s. No agent
can possibly become successful if these
fea tu re s are all he can see in a life in ­
surance contract. A lm ost any m an can
be sold who is convinced th a t you have
outlined a policy which w ill fill an actual
need and plan fo r him.
I am convinced th a t alm ost w ithout
exception, a m an can so arran g e life in ­
surance th a t it will ca rry out the plans
which are n earest and d earest to his
h ea rt in a m anner unequalled by any
other know n agency. I am so thoroughly
sold upon the m erits of th is business th a t
even though I am, not a m aster of E ng­
lish, I find it no trouble to tell a man
clearly and fo rcefu lly th a t, should he be
so fo rtu n a te as to live to be an old man,
life insurance w ill lif t all cares from his
shoulders in the evening of his life, or
should he be tak en aw ay prem aturely,
th a t the m ortgage will be paid, his chil­
dren will be educated, the home will not
be broken up, and th a t his w ife and
daughters will receive a cheek on the

October, 1926

first day of each m onth so long as they
live, rem inding them th a t “d ad” did not
forget. H e can see th a t I have outlined
a way fo r all th a t he loves best to be
made secure.
W hen we perform a service of th is
kind fo r hum anity, then, surely, we will
raise the stan d ard s of life through life
insurance.
New Board at Waterloo
F o rm atio n of a local board, to be
known as the W aterloo In su re rs A ssocia­
tion, has ju st been com pleted in W a te r­
loo, Iowa, w ith tw en ty agencies as mem­
bers. M eetings of the association will be
held m onthly. The officers elected are :
P resident, J. R. V aughan, newely elected
president of th e Iow a Local A gents’ A s­
sociation; vice p resident, W. H. B runn,
Hoxie & B ru n n ; secretary -treasu rer, N.
0 . A rth u r In su ran ce Agency. The offi­
cers form the executive com mittee to ­
geth er w ith O. B. H a rris of the H arrisBickley agency and H. E. W eatherw ax,
Inc.
New Companies Licensed
In su ran ce Com missioner R ay Y en ter
of Iow a has licensed the follow ing com­
panies to w rite insurance in I o w a : P ilo t
R einsurance Company o f New Y o rk ;
Service L ife In su ran ce Company, L in­
coln, N eb rask a; K ansas Life Insu ran ce
Company, Topeka, K a n s a s ; M onarch
L ife In su ran ce Company, Springfield,
M assachusetts, and the A m erican F a rm ­
ers M utual L ife of Des Moines.
Davenport Man Dead
Jo h n G\ Sorensen, connected w ith the
C ontinental C asualty Company of Chi­
cago fo r the p ast fo rty years, and fo r the
p ast tw enty-nine years rep resen tativ e of
th a t com pany in D avenport, Iowa, died
a t his home recently from a h e a rt attac k
term in atin g a sh o rt illness. M r Soren­
sen was well know n and prom inent in
m any fra te rn a l organizations of the city.
H e is survived by a w ife and one son.
Omaha Bureau Planned
The
G reater
Omaha A ssociation,
through its new ly-form ed insurance com­
m ittee, m et recently w ith a special group
of the Omaha In su ran ce Companies to
w ork out plans fo r the creation of an in ­
surance bureau to m ake Om aha an o ut­
stan d in g insurance center. Dr. W . R. McGrew, presid en t of the P ra irie Life, p re­
sented the possibilities to those present.
In Colorado
C. W. W ilson, su p erin ten d en t of th e
P ru d e n tia l In su ran ce Company a t O t­
tumwa, Iow a, has been prom oted to the
superintendency of the com pany’s busi­
ness fo r the southern h a lf of Colorado,
w ith offices a t Pueblo.
M r. W ilson was form erly assista n t
su p erin ten d en t fo r the com pany in Clin­
ton, Iowa.

October, 1926

THE

Becom es D irector

NORTHWESTERN

T h e h ig h q u a lity o f th e p e rs o n n e l o f
th e b o a rd o f d ir e c to r s o f N o rth w e s te rn
N a tio n a l L if e h a s b e e n m a in ta in e d in th e
s e l e c t i o n o f T h e o d o r e W o l d to fill t h e
v a c a n c y c re a te d b y th e re c e n t d e a th o f
J a m e s A . L a tta .
M r. W o o d , w ho w as
fo r m e rly g o v e rn o r o f th e F e d e r a l R e se rv e
B a n k f o r th e n in th d is tr ic t a t M in n e ­
a p o l i s , is v ic e p r e s i d e n t o f t h e N o r t h ­
w e s te r n N a tio n a l B a n k o f M in n e a p o lis ,
a n d a m e m b e r o f th e a d v is o r y c o u n c il o f
th e F e d e r a l R e s e rv e B o a rd a t W a s h in g ­
t o n . H e w a s a ls o e l e c t e d to m e m b e r s h i p
o n th e e x e c u tiv e a n d fin a n c e c o m m itte e s
o f th e N o r th w e s te r n N a tio n a l L ife .

s p e c i a l a t t e n t i o n t o c a l l s o n o ld p o l i c y ­
h o l d e r s . I t is to b e a m o n t h o f s e r v ic e .
T h e d e g r e e o f s u c c e s s t o b e a c h i e v e d w ill
d e p e n d l a r g e l y u p o n t h e i n d i v i d u a l a g e n t ’s
p r e p a r a ti o n f o r th e w o rk a n d th e s p i r i t
i n w h ic h h e s e t s h i m s e l f t o t h e a c c o m ­
p lis h m e n t o f it. A th o r o u g h s tu d y a n d
d ia g n o s is o f e a c h c a s e , b e fo r e m a k in g a
c a ll , w ill a d d g r e a t l y t o t h e r e s u l t s . C o m ­
p l e t e d e t a i l s o f t h e m o n t h ’s p r o g r a m a r e
n o w in th e h a n d s o f e a c h a g e n t. B e fo re
th e m o n th b e g in s e a c h a g e n t s h o u ld
th o r o u g h ly p r e p a r e h im s e lf f o r th e w o rk
in o r d e r t h a t th e g r e a t e s t p o s s ib le b e n e ­
f its m a y b e s e c u r e d f o r t h e p o l i c y h o l d e r ,
h im s e lf a n d th e c o m p a n y .

V isits Hom e Office

N ew Company Licensed

E.
M . W illia m s a n d W illia m H . C a rte r ,
T h e A m e ric a n
g e n e ra l a g e n ts o f th e C e n tr a l L ife A s s u r ­
ance C om pany,
a n c e S o c i e t y a t M e m p h is , T e n n e s s e e , w e r e
p r o m in e n t in th e
r e c e n t v i s i t o r s a t t h e h o m e office i n D e s
e ra tio n , h a s ju s t
M o in e s .

65

BANKER

n e s s i n I o w a . T h e c o m p a n y , w h ile i t h a s
n o o ffic ia l c o n n e c t i o n w i t h t h e f a r m
b u r e a u f e d e r a t i o n , is e x p e c t e d t o r e c e i v e
s tro n g s u p p o r t fr o m its m e m b e rs.
A c tiv e in th e p r e lim in a r y w o rk o f
la u n c h in g th e
com pany a re
G uy L.
R o b e rts , o f M o n ro e , Io w a , a n d K n u te
E e p e , w e l l- k n o w n f a r m b u r e a u l e a d e r .
H e a d q u a rte rs
of
th e
com pany
w ill
p r o b a b l y b e i n D e s M o in e s .

D ies in Seattle
M rs. E m m a T a lb o tt, d a u g h te r o f A b so lo m M o r ris , o n e o f th e f o u n d e r s o f th e
E q u ita b le L if e o f Io w a , d ie d in S e a ttle ,
W a s h in g to n , re c e n tly .

W illia m A nderson Dead

F a rm e rs M u tu a l I n s u r ­
b a c k e d la r g e ly b y m e n
Io w a F a rm B u re a u F e d ­
b e e n lic e n s e d to do b u s i­

F u n e r a l s e rv ic e s w e re
D e s M o in e s f o r G e o rg e
s o n , v ic e p r e s i d e n t o f
L i f e a n d A n n u i t y C o .,

h e ld r e c e n tly in
W illia m A n d e r­
t h e D e s M o in e s
w h o d ie d a t th e

S ioux City M anager
“ J a c k ” H a m ilto n h a s b e e n a p p o in te d
i n c h a r g e o f t h e S i o u x C i t y o ffice o f t h e
N e w Y o rk L ife , s u c c e e d in g M . H . B e c k ,
w h o d ie d r e c e n t l y .
M r . H a m i l t o n ’s a p ­
p o in tm e n t co m es a f t e r s e v e n te e n y e a rs
o f s e rv ic e in th e c o m p a n y . H e s t a r te d as
a n o ffice b o y i n M e m p h is , T e n n e s s e e , a n d
w o r k e d i n t h e L o u i s v i l l e a n d M i lw a u k e e
o ffices b e f o r e j o i n i n g t h e S i o u x C i t y office
as c a s h ie r se v e n y e a rs ago.
T h e S i o u x C i t y office w i l l b e h e a d ­
q u a r t e r s f o r th e n o r t h e r n tw e n ty -o n e
c o u n t i e s i n N e b r a s k a a n d tw e n t y - f i v e
c o u n tie s in n o r th w e s te r n Io w a .
T h e g r o w t h o f t h e S io u x C i t y office h a s
b e e n so g r e a t t h a t t h e c o m p a n y c o n t e m ­
p l a t e s o p e n i n g a n o ffice i n S i o u x F a l l s to
ta k e c a re o f S o u th D a k o ta b u s in e s s .

H old A gen cy Convention
T h e M u tu a l L if e I n s u r a n c e C o. o f N ew
Y o r k r e c e n t l y h e l d a o n e - d a y D e s M o in e s
a g e n c y c o n v e n tio n a t H o te l S a v e ry w ith
a s p le n d id p ro g r a m in c lu d in g in th e lis t
o f sp e a k e rs, M a n a g e r G. A . P a tto n ; A .
R . L in a b u r y , p r e s id e n t; M . C. G a lp in ,
s u p e r in te n d e n t o f a g e n ts ; T . R . P h illip s ,
c a s h ie r a n d W . I . K o r tr ig h t o f th e O m a h a
a g e n c y . A b a n q u e t b r o u g h t th e m e e tin g
t o a c lo s e . C li f f o r d D e P u y , p u b l i s h e r o f
T h e N o r t h w e s t e r n B a n k e r , w a s th e
p r i n c i p a l s p e a k e r o f t h e e v e n in g s e s s io n .

F o r t D odge M eeting
T h e firs t f a l l m e e tin g o f th e F t . D o d g e
L ife U n d e r w r ite r s w a s h e ld r e c e n tly a t
th e c o u n tr y h o m e o f th e p r e s id e n t o f th e
A s s o c ia tio n , G u s B . C ox.
T w e n ty -fiv e
m e m b e rs w e re in a tte n d a n c e . M a n ly V .
K e ith h a d c h a r g e o f th e p r o g r a m o f th e
m e e tin g .
A s p e c ia l f e a tu r e v e ry m u ch
e n jo y e d w a s a d in n e r g iv e n b y M r. a n d
M r s . C o x a t t h e c lo s e o f t h e m e e t i n g .

Old P olicyholder Campaign
D u r i n g t h i s m o n t h , O c to b e r , e v e r y
a g e n t o f t h e M i s s o u r i S t a t e L i f e w i l l g iv e


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

The

Royal
Union
Life
Insurance
Company
DES MOINES
IOWA
We have an unex­
celled line of policy
contracts.

R oyal U nion L ife B uild ing, Cor. 7th and Grand A venue
D es M oines, Iow a

Our new Select Risk low-rate policy for business and professional
men is a fast seller.
Over fifty per cent of our policies are issued and in the mails
within twenty-four hours after the application papers reach the
Home Office.

Royal Union Life Insurance Company
A. C. TUCKER, President
T otal P aid to P olicyh old ers

-

-

-

In surance in F orce as o f D ec. 31, 1925

O ver $ 2 1 ,0 0 0 ,0 0 0 .0 0
-

$ 1 4 8 ,2 8 1 ,9 0 4 .0 0

THE

66

NORTHWESTERN
Becom es D irector

a g e o f s ix ty -e ig h t. H e h a d b e e n a f a r m e r ,
s c h o o l t e a c h e r a n d a t t h e t i m e o f h is
d e a th w a s p r o p r ie to r o f th e A n d e rs o n
P u b lis h in g C o m p a n y o f D e s M o in e s . H e
w a s a c o u sin o f f o r m e r g o v e rn o r J o h n
L u n d o f M in n e s o ta .

M r s . M a m ie M i d d l e t o n , w id o w o f A .
L. M id d le to n , o f E a g le G ro v e , Io w a ,
fo r m e r p re s id e n t o f th e A m e ric a n F a r m ­
e rs M u tu a l L ife , h a s b e e n e le c te d a d ir e c ­
to r o f th e c o m p a n y . G u y R o b e rts , firs t

v ic e p r e s i d e n t , w a s
d e n t a n d W illia m C.
B lu f f s a n d C h a r l e s
M o in e s, w e re c h o s e n

N ew A d vertisin g Service

A C om plete

W ith E quitable

M ID L A N D

BANK

L IM IT E D
H E A D O F F IC E : 5 T H R E A D N E E D L E S T R E E T , L O N D O N , E C. 2
Affiliated Banks: Belfast Banking Co. Ltd., Northern Ireland; The
Clydesdale Bank Ltd., and North of Scotland Bank Ltd., Scotland

Industrial Acceptance
>oration
New York
Capital & Surplus Over $7,000,000
if

COLLATERAL

The Notes o f this Corporation are regarded by a nation-wide
banking clientele as appropriate and attractive investment
fo r short term funds. They may be obtained under customary
option in varying maturities between 2 and 12 months. Com­
plete information available on request to any o f our offices.

N ew Incom e P o licy
T h e N o rth w e s te rn N a tio n a l L ife o f
M in n e a p o lis h a s a n n o u n c e d a n e w r e ­
t i r e m e n t in c o m e p o l i c y , w i t h o u t d e a t h
b e n e f i t e x c e p t f o r r e t u r n o f p r e m i u m s to
th e b e n e fic ia ry in e v e n t o f th e p o lic y ­
h o l d e r ’s d e a t h .
I t is w r i t t e n w i t h o u t
e x a m in a tio n .
T h e p o l i c y is i s s u e d i n u n i t s o f $ 1 0 a
m o n t h l i f e in c o m e , b e g i n n i n g a t a g e s i x t y fiv e, a n d g u a r a n t e e d f o r fiv e y e a r s c e r ­
t a i n . I t is o n a f u l l p a r t i c i p a t i n g b a s i s .
D is a b ility c o v e ra g e m a y b e a d d e d u p o n
s a t i s f a c t o r y e v id e n c e o f i n s u r a b i l i t y , p r o ­
v i d i n g a n in c o m e o f $ 1 0 a m o n t h i n e v e n t
o f to ta l a n d p e rm a n e n t d is a b ility o c c u r­
r i n g b e f o r e a g e s i x ty - f iv e .
A n u n u s u a l f e a t u r e is t h a t t h e a s s u r e d
m a y e le c t t o s t o p p a y i n g p r e m i u m s a n d
r e c e i v e a l i f e in c o m e a t a n y t i m e a f t e r
a g e f i f t y , t h e s i z e o f t h e in c o m e d e p e n d ­
in g u p o n th e a g e o f th e a s s u r e d a s s e t
f o r th in a ta b le p r i n te d in th e c o n tr a c t.

Good A dvice
S e e h im a g a i n ! W h e n h e to o k t h a t
$ 5 ,0 0 0 h e t h o u g h t i t w o u ld b e a l l . B u t
h e h a s b e e n g iv e n a b e t t e r p o s itio n , o r h is
first b a b y h a s com e, o r a n y o n e o f n u m ­
e ro u s e v e n ts f a v o r a b le to y o u h a v e h a p ­
p e n e d t o h im .
S ee h im a g a in !
T u rn
t h e $ 5 ,0 0 0 i n t o a $ 1 0 ,0 0 0 , a n d l a t e r c h a n g e
t h e $ 1 0 ,0 0 0 t o a $ 2 0 ,0 0 0 . D o n ’t n e g l e c t
firs t-c la s s p o lic y h o ld e rs .
S o m e b o d y w ill
g e t th e in c r e a s in g b u s in e s s w h ic h th e i r
b r o a d e n i n g l i f e m a k e s p o s s i b l e .— ( O ld
P o l i c y h o l d e r s ) — N ew s L etter.

Luck

Commercial Paper Offices
N E W YORK

100 East 42nd Street

S A N FRANCISCO

225 Bush Street

Financing exclusively dealers o f

THE STUDEBAKER C O R P O R A T IO N
OF AMERICA


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

R o g e r H . H o s te tle r h a s re c e n tly a ss o ­
c ia te d w ith S t. J o h n & C a r te r , g e n e ra l
a g e n ts in D e s M o in e s f o r th e E q u ita b le
L ife o f Io w a .

TR U ST GOLD NOTES

(The National City Bank o f N. Y., Trustee)

CHICAGO

m a d e a c tin g p r e s i­
C h i l d r e n , o f C o u n c il
E . H e a rs t, o f D es
a s d ir e c to r s .

T h e N o rth w e s te rn N a tio n a l h a s a n ­
n o u n c e d a m a il a d v e r tis in g s e rv ic e f o r
t h e u s e o f i t s a g e n t s . T h e p l a n c a ll s f o r
th e s u b m is s io n o f m a ilin g lis ts b y th e
a g e n t, le t te r s to b e m a ile d o u t b y th e
h o m e o ffice.
E a c h l e t t e r is t o b e f o l ­
lo w e d u p b y a p e r s o n a l c a l l w i t h i n tw o
w e e k s a f t e r i t h a s b e e n re c e iv e d .
The
s e r v i c e is o f f e r e d i n a n a t t r a c t i v e b i n d e r ,
e a c h l e t t e r w ith e n c lo s u re s b e in g in a
fo ld e r b y its e lf.

The Midland Bank offers exceptional facilities for the transaction
of banking business of every description. Together with its
affiliations it operates 2,250 branches in Great Britain and
Northern Ireland, and has agents and correspondents in all parts
of the world. The Bank has offices in the Atlantic Liners
A q u ita n ia , B eren g a ria and M a u r e ta n ia , and a foreign branch office
at 196 Piccadilly, London, specially equipped for the use and
convenience of visitors in London.

105 So. La Salle Street

October, 1926

BANKER

L u c k m e a n s r i s i n g a t 6 o ’c lo c k i n t h e
m o r n in g , liv in g o n a d o lla r a d a y i f y o u
e a r n tw o , m i n d i n g y o u r o w n b u s i n e s s a n d
n o t m e d d l i n g w i t h o t h e r p e o p l e ’s . L u c k
m e a n s a p p o in tm e n ts y o u h a v e n e v e r
f a i l e d to k e e p — t r a i n s y o u h a v e n e v e r
f a i le d to c a tc h . L u c k m e a n s tr u s t i n g in
G od a n d y o u r ow n re s o u rc e fu ln e s s . T h e
o n ly g o o d s u b s t i t u t e f o r l u c k is w o r k .—
( P r o d u c t i o n ) — P e l i c a n C lu b N ews.

October. 1926

T HE

NORTHWESTERN

67

BA N K E R

I4SV

A rchie Cunningham and H arlen Lacy
h a v e p u rc h a s e d th e r e a lty c o m p a n y a n d
in s u ra n c e a g e n c y o f S e w a rd a n d V in c e n t
a t A lg o n a , I o w a . T h e f ir m w i l l h e r e a f t e r
he k n o w n a s C u n n in g h a m
an d L acy.
M e s s r s . S e w a r d a n d V i n c e n t w ill g o to
C h ic a g o to f o r m a s u b u r b a n r e a l e s t a t e
d e v e lo p m e n t c o m p a n y .

W i s h to

GO

A ll of us at some tim e or other w ished to enter b u sin ess for
ourselves. Perhaps we have had th e opportunity but lacked
the courage to venture.

O p p o r tu n ity Is R in g in g Y o u r Doorbell

Top Contracts Available in

Alabama
Arizona
Arkansas
California
Colorado
Florida
Georgia

Kansas
Kentucky

Michigan
Missouri
Nebraska
New Mexico
Pennsylvania
South Dakota
Tennessee
Texas
Washington
Wyoming


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Federal Reserve Bank of St. Louis

AGENCY D EPARTM ENT

National Life Association
H o m e O ffice: Des M oines, Iowa
"

A G re a t C om pany
D aily G row ing G rea ter
Insurance in force January 1, 1926

$ 5 8 7 ,5 8 6 ,5 0 8 .0 0

J . A . B lu m , g e n e r a l a g e n t i n D e s M o in e s
f o r t h e G u a r a n t y L i f e I n s u r a n c e C o ., w a s
s i g n a l l y h o n o r e d in M i l w a u k e e r e c e n t l y ,
b e i n g e l e c t e d b y t h e d i s t r i c t g r a n d lo d g e
c o n v e n t i o n o f t h e I . 0 . 0 . B ., o r I n d e ­
p e n d e n t O r d e r o f B ’n a i B a i t h , a s t h e i r
T r u s te e o f L e o N . S e v i M e m o ria l H o s p ita l
a t H o t S p r i n g s , A r k a n s a s . T h is h o s p i t a l
is m a i n t a i n e d f o r t h e t r e a t m e n t o f t h e
B la c k P la g u e , a n d a ll p a ti e n ts a r e a d ­
m itte d w ith o u t c h a rg e f o r b o a rd o r a t ­
te n tio n .
I t is c o n d u c t e d a s n o n - s e c ­
t a r i a n , a d m i t t i n g a l l a ff lic te d .
M r . B l u m is a ls o i n t e r e s t e d i n a n O r ­
p h a n A s y lu m m a in ta in e d b y th is O rd e r
i n C le v e l a n d , O h io , a n d a h o s p i t a l f o r
tu b e r c u lo s is in
D e n v e r, a n d
d e v o te s
m u c h tim e to c h a r ita b le in s titu tio n s .

M r. P i t h e r c a m e to T h e M e r c h a n ts
L o a n & T r u s t C o m p a n y , n o w th e Illin o is
M e rc h a n ts T r u s t C o m p a n y , in 1896, an d
le a v e s a r e c o r d o f t h i r t y y e a r s o f u s e ­
f u l a n d f a i t h f u l s e rv ic e .
H e is s u r v i v e d b y h i s w id o w , C o r a
L o o m is P i t h e r , a n d a s o n , A lla n , n o w
e i g h t y e a r s o ld .

The N ational L ife A ssociation offers YOU the unlim ited op­
p ortu nities of a good payin g bu sin ess of your own. In Illin o is
a N ation al L ife salesm an has been noted for h is consisten t
production, w hich over a spread of 98 m onths has averaged
$ 3 0,058.00.
A num ber of N ational L ife salesm en have increased their
earning a b ility by 50 per cent through th e N ational L ife ’s
popular low -cost policies. T his same opportunity is possible
to you through a N ation al L ife contract. C orrespondence in ­
vited.

—

«¿sir

D es M oines M an Honored

A llan F . P ither, a s s i s t a n t c a s h i e r o f
th e I llin o is M e r c h a n ts T r u s t C o m p a n y o f
C h ic a g o , d i e d a t h i s h o m e i n R i v e r s i d e
o n S u n d a y , A u g u s t 1 5 th .
A lth o u g h h e
h a d b e e n in p o o r h e a lth f o r a lo n g tim e ,
h e w a s a t h is d e s k e v e ry d a y to w ith in a
w e e k o f h is d e a th .

BUSINESS

for Y ourself

F ire rates in Clarinda, Iowa, m a y b e
r e d u c e d s o o n , d u e to t h e a d o p t i o n o f tw o
n ew fire tr u c k s b y t h a t c ity .
E ach of
t h e n e w t r u c k s is e q u i p p e d w i t h tw o
s i x t y - g a l l o n t a n k s w h ic h c a n b e u s e d b y
d i r e c t p r e s s u r e f r o m t h e e n g in e , f o r u s e
p a r tic u la r ly in r u r a l d is tr ic ts a d ja c e n t
to C l a r i n d a . O n e o f t h e t r u c k s w ill b e
d e s i g n a t e d f o r r u r a l u s e , w i t h i n e ig h t
m i le s o f t h e c i t y , a n d a s m a l l c h a r g e w ill
be m a d e f o r its u se.

M. L. D udley, h e a d o f t h e M . L . D u d ­
le y lo c a l a g e n c y i n D e s M o in e s , is s a i d
to b e t h e o n l y m a n i n I o w a w h o is t h e
g r a n d s o n o f a R e v o lu tio n a ry w a r s o ld ie r
a n d o n e o f th e fe w m e n in th e U n ite d
S ta t e s w h o c a n c la im t h a t h o n o r.
He
w a s t w o y e a r s o ld w h e n h i s s o l d i e r g r a n d ­
f a t h e r , S a m u e l D u d l e y , d ie d .
M r. D u d ­
l e y ’s f a t h e r a n d m o t h e r c a m e to I o w a in
1856 in a tw o -h o rs e b u g g y f r o m W e s t
V irg in ia , a n d w e re a m o n g th e e a rly s e t­
tle rs o f th e s ta te .

INTO

Insurance in force August 31, 1926, in
excess of

$ 6 2 4 ,0 0 0 ,0 0 0 .0 0
A great Company daily growing
greater.

Splendid openings for Banker Agents.
Liberal Contracts. Prompt Service.
B. C. T H U R M A N

M anager Des M oines B ranch
618 Insurance Exchange
Des M oines, Iowa

MISSOURI STATE LIFE
INSURANCE COMPANY
M . E. S I N G L E T O N , P r e s i d e n t

Li f e

Accident

H O M E O FFICE:

Health

S A IN T LO U IS

Group

T HE

68

NO RT Ï Ï W E S T E RN

BANKER

October, 1926
H old Form al Opening

Title
Insurance
eliminates waste-—
reduces cost
and time

For the

R eal E s ta te In v e sto r
T h e r e a r e fiv e i m p o r t a n t p o i n t s w h ic h c o m m e n d
T i t l e I n s u r a n c e t o a n y o n e o w n i n g o r d e a l i n g in
re a l e s ta te :
F i r s t — T h e r e is a t h o r o u g h e x a m i ­
n a tio n o f title , once a n d fo r e v e r do w n
to a c e r t a i n p o i n t .
S e c o n d — T h e r e is a n a b s o l u t e g u a r ­
a n te e , b a c k e d b y th e to t a l re s o u rc e s
o f t h e I n s u r a n c e C o m p a n y , w h ic h is
u n d e r d ir e c t s u p e rv is io n o f th e S ta te .
T h i r d — T h e r e is a s a v i n g o f ti m e
a n d e x p e n s e — tw o i m p o r t a n t i t e m s in
b u sin e ss.
F o urth — G re a t ease an d ch eap n ess
in t h e m a k i n g o f m o r t g a g e s a n d a ll
su b se q u e n t tr a n s f e r s , w h e re
q u ic k
l i q u i d a t i o n is d e s i r e d .
F i f t h — T i t l e I n s u r a n c e is a b u s i ­
n e ss a s s e t, a s a ll o th e r k in d s o f in s u r ­
a n c e a r e a s s e ts , e n h a n c in g th e v a lu e
o f th e th i n g i t p ro te c ts .

Title Insurance D epartm en t

Southern Surety
Company

201 Y o u n g e rm a n B u ild in g

IOWA

W hat the 6 3 r d A nnual S ta tem en t S h o w s
A s s e t s o f $36 8 ,8 1 8 ,0 7 3 .
P o l i c y h o l d e r s ’ r e s e r v e ( M a s s a c h u s e t t s s t a n d a r d ) o f $ 316,383,808.
in c lu d in g - p o l i c y h o l d e r s ’ d iv id e n d s

of

$11,-

S u r p lu s A s s e t s $ 3 0 ,5 1 1 ,8 0 5 ; 9.6 p e r c e n t o f th e g e n e r a l p o li c y r e s e r v e .
T h e J o h n H a n c o c k M u tu a l w r i t e s a l l f o r m s o f L ife , E n d o w m e n t a n d T er m
p o li c ie s f o r B u s i n e s s a n d P e r s o n a l P r o t e c t io n , J o i n t L if e c o n t r a c t s , T o ta l
D i s a b i l i t y a n d D o u b le I n d e m n it y , a l l th e n e w f o r m s o f G r o u p , W h o le s a le a n d
S a la r y D e d u c t io n , a s w e ll a s A n n u it y c o n t r a c t s in v a r io u s fo r m s .
O ur o r g a n i z a t i o n is p r e p a r e d to
a r r a n g e l i f e in s u r a n c e p r o t e c t io n
to m e e t a n y n e e d a n d s p e c ia l iz e s
in t h e r e q u ir e m e n t s o f p a r t ic u l a r
c o n d it io n s a n d i n h e r it a n c e t a x e s .

1

~

L if e I n s u r a n c e C ompany ^
of

B o s t o n . Ma s s a c h u s e t t s

HARRY S. HASKINS, State Agent
417-21 Southern Surety Building, Des Moines, Iowa


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

T h e P e o p le s S to c k Y a rd s S ta te B a n k
is o v e r 2 2 y e a r s o ld . I t s r e s o u r c e s a r e
$ 1 7 ,0 0 0 ,0 0 0 .
I t s r a p id g ro w th h a s o c­
c a sio n e d th e ta k in g o n o f a d d itio n a l sp a c e
f r o m tim e to tim e a n d w ith th is la t e s t
e n l a r g e m e n t i t d o u b le s i t s q u a r t e r s a n d
t h e m a j o r i t y o f i t s d e p a r t m e n t s a r e in
t h e f i r s t f lo o r, i n c l u d i n g t h e s a f e - d e p o s i t
v a u lts . I t n o w h a s f a c i li ti e s f o r g iv in g
s e rv ic e
to
1 0 0 ,0 0 0
c u sto m e rs .
The
P e o p l e s S t o c k Y a r d s S t a t e B a n k is n o t
o n l y o n e o f C h i c a g o ’s l a r g e s t b a n k s , b u t
is o n e o f t h e 3 0 0 l a r g e s t b a n k s i n t h e
U n i t e d S t a t e s — a n d w h e n i t is r e c a l l e d
t h e r e a r e o v e r 3 0 ,0 0 0 b a n k s , t h e s o u t h ­
w e s t s i d e m a y w e ll b e p r o u d t o h a v e o n e
o f th e 300 la r g e s t.

N ew V au lt V en tilator

DES MOINES

O th e r l i a b i l i t i e s $ 2 1 ,9 2 2 ,4 5 9 ,
250,000 p a y a b le in 1926.

T h e P e o p le s S to c k Y a rd s S ta t e B a n k ,
C h ic a g o , o n e o f t h e l a r g e o u t l y i n g b a n k s ,
h e ld a f o r m a l o p e n i n g o f i t s n e w a n d e n ­
la r g e d b a n k b u ild in g o n S a tu r d a y , S e p ­
te m b e r 1 8 th . F o r a y e a r w o rk h a s b e e n
g o i n g f o r w a r d o n t h i s p r o j e c t a n d i t is
to d a y th e la r g e s t o u tly in g b a n k b u ild in g
e x c lu s iv e ly o c c u p ie d b y a b a n k .
It
f r o n t s 3 7 5 f e e t o n t h r e e s t r e e t s , 4 7 th
s t r e e t , A s h l a n d a n d G r o s s a v e n u e s , is
t h r e e s t o r i e s h ig h , h a s fiv e e n t r a n c e s a n d
as a r e s u lt o f th e tr ia n g u la r - s h a p e d b u ild ­
i n g , t h e r e is a n a b u n d a n c e o f d a y l i g h t
a f f o r d e d to a l l d e p a r t m e n t s .
H o g g so n B ro th e r s , o f N ew Y o rk , w e re
th e a r c h ite c ts .
T h e b u ild in g p re s e n te d
a n u m b e r o f u n iq u e p ro b le m s in t h a t th e
w o rk c o n s is te d o f e n la r g in g a n d re m o d e l­
in g w ith th e b a n k in o p e r a tio n th e f u ll
t i m e . T h e o ld v a u l t s w e r e r e p l a c e d w i t h
f o u r n e w o n e s, a ll p r o te c te d w ith h u g e
ti m e - l o c k d o o r s .

A b a n k v a u lt p ro b le m e x is te n t sin c e
b a n k v a u lts w e re firs t b u ilt h a s u n q u e s ­
t i o n a b l y b e e n f i n a ll y a n d c o m p l e t e l y
so lv e d b y th e W e s t V a u lt V e n tila to r , d e ­
v is e d a n d p a t e n t e d b y M . G . W e s t , a
w e ll- k n o w n P a c i f i c C o a s t e n g i n e e r .
It
h a s a lr e a d y co m e in to g e n e ra l u se in C a li­
f o r n i a , b u t h a s b e e n i n t r o d u c e d e ls e w h e r e
o n ly f o r a fe w m o n th s b a c k ; n e v e rth e le s s
h a s re c e iv e d th e e n th u s ia s tic a p p ro v a l o f
a rc h ite c ts a n d b a n k e rs as ra p id ly as
b r o u g h t to t h e i r a t t e n t i o n .
T h e d e v ic e is r e a l l y s i m p l e , l i k e m a n y
o th e r o u ts ta n d in g in v e n tio n s . N e v e r th e ­
le s s i t s i n g e n u i t y o v e r c o m e s d if f ic u l ti e s
i n t h e v e n t i l a t i o n o f a c lo s e d v a u l t h i t h ­
e rto r e g a r d e d a s in s u p e ra b le .
T h e v e n t i l a t o r is b y n o m e a n s a m e r e
“ h o le -in -th e -w a ll” b u t— d ra w in g f r e s h a ir
in a n d e x p e llin g th e f o u l a ir — p ro v id e s
f o r c e d d r a f t v e n t i l a t i o n s u f f ic i e n t to
m a k e c o m f o r t a b l e a n y n u m b e r o f p e o p le
w h o m a y b e lo c k e d i n a v a u l t .
A t th e
s a m e t i m e i t is so d e s i g n e d a s t o a f f o r d
n o t th e s lig h te s t e n c o u ra g e m e n t to , o r
o p p o r tu n ity fo r , b u rg la rio u s a tta c k .
In
c o v e r i n g t h e s e tw o p o i n t s i t w ill b e r e c ­
o g n iz e d t h a t t h e i n v e n t i o n e x a c t l y s o lv e s
th e p ro b le m h ith e r to e x is tin g .
T h e in s ta lla tio n c o n s is ts p r im a r ily o f

October, 1926

THE

p la c in g in th e v a u lt w a ll a h e a v y s te e l
c y lin d e r o f a le n g th c o rr e s p o n d in g w ith
t h e t h i c k n e s s o f t h e w a ll.
W h e n n o t in u s e f o r v e n tila tio n , a n d
d u r in g n ig h t h o u rs w h e n b u r g la r y a tta c k
m u s t b e g u a r d e d a g a i n s t , t h i s c y l i n d e r is
t r a n s f o r m e d i n t o a s o l id m a s s o f s t e e l b y
th e in s e r ti o n o f a c lo s e -fittin g c o re o r
p l u g so c o n s t r u c t e d a s to o f f e r f u l l r e s i s t ­
a n c e t o h e a t o r d r i l l i n g , a n d w h ic h , a c ­
c o rd in g to th e b u r g la r y in s u ra n c e re -

NORTHWEST E RN

BAN KEK

The Symbol

is the sym bol w h ich expresses the frien d ly and cor­
dial relations b etw een th e D es M oines L ife and A n ­
n u ity Co. and its agents and p olicyhold ers.
H undreds o f agents have recogn ized and now ap pre­
ciate th e sincerity b eh in d this w ell know n expression
o f this com p an y’s b u sin ess creed.
W ith th ese agents w e are w orking in a personal,
frien d ly w ay, h avin g in m in d th eir interests as m uch
as our own.
q u ir e m e n ts , m o re th a n m a tc h e s in b u r ­
g l a r y - r e s i s t a n t s t r e n g t h , t h e w a l l in
w h i c h i t is p l a c e d .
T h i s s t e e l p l u g is s c r e w e d i n a n d lo c k e d
in p o s itio n f r o m th e in s id e o f th e v a u lt.
W h e n v e n t i l a t i o n is d e s i r e d , t h e p l u g is
re m o v e d , f r o m th e in s id e o f th e v a u lt, o f
c o u r s e , a n d is r e p l a c e d b y a f a n a s s e m ­
b l y k e p t in t h e v a u l t f o r t h e p u r p o s e .
T h is f a n d ra w s th e f r e s h a i r th r o u g h a
c e n t r a l t u b e , w h ile t h e f o u l a i r e s c a p e s
th r o u g h a v e n t a ffo rd e d b y th e sp a c e b e ­
t w e e n t h i s t u b e a n d t h e c y l i n d e r w a ll.
A s sh o w n b y th e c u t h e re w ith , th e d e ­
v ic e p r e s e n t s u p o n t h e e x t e r i o r o f t h e
v a u l t w a l l m e r e l y a p o l i s h e d s t e e l d is c ,
in t h e c e n t e r o f w h ic h a p p e a r s t h e v e n ­
t i l a t i o n flu e w h e n e v e r t h e p l u g is w i t h ­
d r a w n a n d f a n a s s e m b l y is i n s e r t e d f r o m
w ith in th e v a u lt.
T h e m a n u f a c tu r e a n d sa le o f th e d e ­
v ic e o u t s i d e C a l i f o r n i a is i n t h e h a n d s o f
th e 0 . B . M c C lin to c k C o m p a n y o f M in n e ­
a p o lis .
I t c a n a ls o b e o b t a i n e d f r o m
v a u lt a n d s a f e m a n u f a c tu r e r s g e n e ra lly .

N ew C redit M anager
T h e C o s m o p o l it a n S t a t e B a n k , C h ic a g o ,
a n n o u n c e s t h e a p p o i n t m e n t o f L o u is M .
M ie le n z , o f O m a h a , N e b r a s k a , a s m a n a g e r
o f i t s c r e d i t d e p a r t m e n t , w ith t h e office o f
v ic e p r e s i d e n t , s u c c e e d in g M r . E d w a r d
M . W a r n e r , r e s ig n e d . M r . M ie le n z is w e ll
k n o w n i n b a n k i n g c ir c le s o f C h ic a g o a n d
th r o u g h o u t N e b ra s k a , h a v in g s e rv e d f o r
t h e p a s t e i g h t y e a r s a s v ic e p r e s i d e n t
o f t h e U n io n S t a t e B a n k o f O m a h a , w h ic h
h e a s s is t e d in o r g a n i z i n g .
T h e le s s w e h a v e t o d o w i t h o u r s i n s ,
th e b e tte r .— E m e rs o n .


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

T hrough th is p olicy Ave are b u ild in g a progressive,
sound and grow ing life in su ran ce in stitu tio n — and
each agen t’s op p ortu n ity and p rosp erity grows with
the com pan y’s progress.
D u rin g 1 926— and th ereafter, w e w ill w elcom e the
op p ortu n ity o f serving you.

J. J. Shambaugh, Pres.

Des Moines Life and Annuity Company
Des Moines, Iowa

You Value Security
Just as you Bankers value the security behind
your loans, so also do our policyholders value
the security that they know is behind this old
reliable Fire Insurance Company. You can rec­
ommend the Iowa National Fire with safety.

P ro m p tn ess , here , is habitual.
Fire, Lightning, Tornado and A u to m o b ile Insurance

FIRE INSURANCE COMPANY
DES MOINES, IOWA

69

70

T H E

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

October. 0)20

B A N K E R

For B ankers and T h e ir W an ts
This department of THE NORTHWESTERN BANKER is to
assist SUBSCRIBERS in obtaining goods or service hard to
find. It is free to subscribers. Use it. ASK US, as we can
tell you where to buy anything you need in your bank or for
your bank. TELL US, as your “ want” will be published
under the above heading free of charge. In answering
classified advertisements which have key numbers please en­
close a two-cent stamp. This is used to forward your letter.
Position wanted a s c a s h i e r o f a c o u n ­
t r y b a n k b y m a r r i e d m a n , 14 y e a r s ’ g e n ­
e r a l b a n k i n g e x p e r i e n c e , 34 y e a r s o f a g e .
S te a d y a n d re lia b le . N o w e m p lo y e d b u t
a v a i l a b l e o n s h o r t n o ti c e .
R e fe re n c e s
fu r n is h e d . A d d re s s N o. 2923, T h e N o r th ­
w e s t e r n B a n k e r — 10.
Position wanted b y m a n 22 a n d s i n g le .
F o u r y e a r s b a n k in g , f a r m lo a n a n d in s u r ­
a n c e e x p e r i e n c e . S p e a k G e r m a n f l u e n tl y .
A - l r e f e r e n c e s . A v a i l a b l e D e c . 1, 1926.
A d d re ss N o. 2924, th e N o rth w e s te rn
B a n k e r — 10.
Position wanted a s c a s h i e r o f a c o u n ­
t r y b a n k b y m a r r i e d m a n w i t h 11 y e a r s ’
b a n k in g e x p e rie n c e .
H a v e w r i t t e n a ll
k in d s o f in s u ra n c e . C e n tr a l o r n o r t h e r n
I o w a w ill b e c o n s i d e r e d .
C an f u r n is h
A -l re fe re n c e s.
A d d re ss N o. 2926, th e
N o r t h w e s t e r n B a n k e r — 10.
Position wanted a s c a s h i e r o f a c o u n t r y
b a n k b y m a r r i e d m a n 36 y e a r s o ld , w i t h
15 y e a r s ’ g e n e r a l c o u n t r y b a n k i n g e x ­
p e rie n c e .
N ow
e m p lo y e d b u t d e s ire
c h a n g e . R e fe re n c e s fu rn is h e d . A d d re ss
N o . 2 9 2 7 , t h e N o r t h w e s t e r n B a n k e r — 10.
Position wanted a s a s s i s t a n t c a s h i e r in
c o u n tr y b a n k w ith p o s s ib ilitie s f o r a d ­
v a n c e m e n t.
P r e f e r M i n n e s o t a o r S o u th
D a k o t a b u t w ill a c c e p t a n y l o c a t io n .
T w e n ty -th re e y e a rs o f a g e . F o u r y e a r s ’
a c tu a l b a n k in g e x p e rie n c e .
R e fe re n c e s
fu rn is h e d .
N o w e m p lo y e d b u t d e s ire
change.
A d d re ss N o. 2928, th e N o rth ­
w e s t e r n B a n k e r — 10.
Position wanted b y a n e n e r g e t i c y o u n g
m a n a s te lle r o r a s s is ta n t c a s h ie r. U n i­
v e r s ity g r a d u a te w ith b a n k in g e x p e ri­
en ce. G ood re f e re n c e s . A d d re s s N o. 2918
T h e N o rth w e s te rn B a n k e r— In d e f.
For Sale Cheap: O n e s e t b a n k fix ­
tu r e s , m a rb le -fa c e d c o u n te rs , a n d a b o u t
60 f e e t o a k w a i n s c o t i n g w i t h m a r b l e
b a s e b o a r d s . A n o r n a m e n t to a n y b a n k .
A d d re ss W . S p e rry , H a m b u rg , Io w a —
In d e f.

Steel and Copper Engraved
S T A T IO N E R Y , B U S IN E S S
ANNOUNCEM ENTS AND CARDS
For
The

q u a lity

H o m e ste a d

w ork

ad d ress

C o m p a n y , D e s M o in es.


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

Assistant Cashier Wanted in

prosperous northeastern Iowa
town. Prefer young married
man between age of 25 and 30,
Protestant, with experience to
operate bank if necessary. Ad­
dress No. 2925, the Northwest­
ern Banker—10.
For Sale: F i r s t N a t i o n a l B a n k b u i l d ­
in g a n d fix tu re s .
M o s le r t r i p l e t i m e r
M a n g a n e se sa fe , p ra c tic a lly new .
M c­
C li n to c k b u r g l a r a l a r m . N u m e r o u s s m a l l
a c c e s s o rie s .
W . R . P a y n e , R e c e iv e r ,
P l e a s a n t v il le , I o w a .
Position wanted a s c a s h i e r o r a s s i s t ­
a n t c a s h ie r.
T w e n ty y e a rs s ta te b a n k ­
in g e x p e rie n c e .
W r ite N o. 2929, th e
N o r t h w e s t e r n B a n k e r — 10.

USED S A F E T Y
BOXES FOR SALE
We have twelve hundred
slightly used safety deposit
boxes, sheet metal, sing'le
keys, all locks different, in
nests of twenty-five each.
D IM E N S IO N S
W ide

N e s ts
B oxes

H ig h

D e p th

....26% in . 26% in . 14% in .
.... 4% in . 4% in . 13% in .

W hile th e y la st, tw enty-five d o lla rs
p e r n e s t of tw enty-five boxes, in c lu d ­
in g keys, w ith in d iv id u a l pigeonholes
fo r each box.
A ddress

IOWA NATIONAL BANK
D es M oines, Iow a
Jam es F. H art, A sst. Cashier

FLOWERS AND SERVICE
AJLPH A P L O I1A L C O M P A N Y
P h o n e W a ln u t 3«2
J . 8 . W IU S O N F L O R A L CO.
D r a k e 5K4
D E S M O IN E S

Position Wanted: A s c a s h i e r in b a n k
lo c a t e d in t o w n o f 2 ,5 0 0 t o 5 0 0 . P r e f e r
Io w a .
C an fu rn is h b e st o f re fe re n c e s.
E x p e r i e n c e in c l u d e s r e g u l a r w o r k o f
c a s h i e r in b a n k a n d h a n d l i n g i n s u r a n c e
d e p a r t m e n t o v e r p e r i o d o f s i x y e a r s , a ls o ,
2% y e a r s i n i n v e s t m e n t b a n k i n g a n d r e a l
e s t a t e office.
32 y e a r s o ld .
A d d re ss
N o . 2 9 2 2 , T h e N o r t h w e s t e r n B a n k e r — 9.
Research w o r k o n b a n k i n g s u b j e c t s , a n d
s p e e c h w r it in g to s p e c ific a tio n s . E d w a r d
W e s t, 500 F i f t h A v e n u e , N e w Y o rk .
Wanted: G o o d s e c o n d - h a n d S t a a t s
M oney C h a n g e r. M u st be ch eap .
L. J.
B i t t e r l e y , B a r i n g , M o.
H ole in One
T h e fa m o u s a r t i s t s o f th e m id d le w e st
h e ld a g o l f t o u r n a m e n t a t N i p p e r s i n k
L o d g e, G e n o a C ity , W is c o n s in , re c e n tly .
P . M . R e e d o f C h ic a g o , w a s t h e h o n o r
g u e s t, a n d j u s t to sh o w th e a r t i s t s th a t
b a n k a d v e r t i s i n g is n o t h i s o n ly s p e c i a l t y ,
h e d r o v e s t r a i g h t to t h e p e g , m a k i n g t h e
s e v e n t h h o le w i t h o u t a r o l l in o n e , w i t h
a S p a u ld in g “ K r o f lite ”— 17.
T o p r o v e i t w a s n ’t lu c k , o n t h e n e x t
r o u n d P . M . d r o v e h i s D u n l o p “ M a x f li”
w i t h i n o n e a n d a q u a r t e r in c h e s o f t h e
peg.

A Y oun gster’s B u sin ess Sense
S ix - y e a r-o ld B illie fo u n d a p o c k e tb o o k
a n d m a d e h a s t e to r e t u r n i t t o it s o w n e r .
“ Y o u ’r e a n h o n e s t l a d , ” t h e l a t t e r t o l d
h im , m a g n a n i m o u s l y .
“ H e r e , I ’ll g iv e
y o u a d im e .”
“ A w , y o u d o n ’t h a f t a , ” r e p l i e d B il li e ,
t u r n i n g a w a y . “ I k e p t a q u a r t e r o u t . ”—

T he A m erica n L eg io n W eekly.
E a c h m a n h a s h is o w n f o r t u n e in h is
h a n d s .— G o e th e .

—

If W
O
O
SO
EU
'LN
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F-D
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C
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SIC
YSET
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S o ld In I o w a b y
J . H . W E L C H P R I N T I N G CO.
1 1 6 6 -6 8 -7 0 S ix t h A v e .. D e s M o in e s .
P r in t e r s . B in d e r s . M n fg . S t a t io n e r s .

THE

October, 1926

NORTHWESTERN

71

BANKER

j o u r n s w ill b e S u n d a y a n d t h e n w ill c o m e
In d e p e n d e n c e day .

South Dakota
B an k N ew s

I n a d d itio n to th e c o n v e n tio n d a y s ,
S u n d a y a n d In d e p e n d e n c e d a y , th e b a n k ­
e rs p la n to r e m a in in th e H ills f o r th e
B e lle F o u r c h e T r i - S t a t e R o u n d - U p .

Officers South Dakota Bankers
Association

A t th e m e e tin g th e e x e c u tiv e c o m m it­
t e e a d o p t e d r e s o l u t i o n s o f c o n d o le n c e f o r
P h il G . S a u n d e r s , M ilb a n k , m e m b e r o f
th e p r o te c tiv e c o m m itte e o f th e a s s o c ia ­
tio n , w h o w a s k ille d r e c e n tly in a n a u to ­
m o b i le a c c i d e n t , a n d E g b e r t S t o n e , H o w ­
a rd , w h o w a s k ille d in a n a v a l s e a p la n e
a c c id e n t n e a r th e G re a t L a k e s n a v a l
t r a i n i n g s t a t i o n a t C h ic a g o .

P r e s id e n t................................E in e r J o h n so n
V olin
V ice

E IN E R JO H N S O N
P r e s id e n t

P r e s id e n t......... H a r r y
G e tty sb u rg

G riffith

S e c re ta ry .......................... Geo. A. S ta rr in g
H u ro n
T r e a s u re r..............-G eo . C. F u lle n w e id e r
H u ro n

C h a rte r A p p ro v e d
T h e a p p lic a tio n o f th e C h a se s o f W il­
lo w L a k e s f o r c h a r t e r t o o p e n t h e C h a s e
N a tio n a l B a n k a t D e S m e t, S o u th D a ­
k o ta , h a s b e e n a p p ro v e d . A s e c o n d b a n k
is t h u s a s s u r e d t h e c o u n t y s e a t .
O p e n s a t C a rth a g e
T h e F a r m e r s S ta te B a n k o f C a rth a g e ,
S o u th D a k o ta , o p e n e d its d o o rs f o r b u s i­
n ess re c e n tly .
T h e s a m e o ff ic e rs a r e in
c h a rg e a s b e f o r e th e r e o r g a n iz a tio n , w ith
th e e x c e p tio n o f th e d ir e c to r s .
M e e ts in H u r o n
P ro b le m s o f th e S o u th D a k o ta B a n k ­
e rs A s s o c ia tio n w e re d is c u s s e d in H u ro n
r e c e n tly b y m e m b e rs o f th e e x e c u tiv e
c o u n c il o f th e a s s o c ia tio n a t t h e i r q u a r ­
te r ly m e e tin g .
T h e s e s s i o n s o f t h e c o u n c i l w e r e h e ld
in t h e f i r e m e n ’s c lu b r o o m s a t t h e c i t y
h a ll . T h e f i r s t s e s s io n c o n t i n u e d t o n o o n ,
w h e n t h e c o u n c il a d j o u r n e d f o r lu n c h e o n .
N a m e d P re s id e n t
T . A . B e lg u m , f o r m e r v ic e p r e s i d e n t o f
th e C o ro n a S ta t e B a n k , C o ro n a , S o u th
D a k o ta , h a s b e e n e le c te d p r e s id e n t o f
t h a t i n s t i t u t i o n t o fill t h e v a c a n c y c a u s e d
b y th e d e a th o f P h il 6 . S a u n d e rs . E . H .
B e n e d i c t o f M i l b a n k w a s e l e c t e d v ic e
p r e s id e n t.
To R eopen
A rra n g e m e n ts h a v e p r a c tic a lly been
c o m p l e t e d f o r t h e r e o p e n i n g o f t h e D e lm o n t S ta t e B a n k a t D e lm o n t, S o u th D a ­
k o ta . A t a m e e t i n g r e c e n t l y , s i g n a t u r e s
o f 75 p e r c e n t o f th e d e p o s ito rs w e re o b ­
ta in e d f o r th e r e o r g a n iz a tio n p la n d ra w n
u p b y th e b o a rd o f d ir e c to r s a n d th e s t a te
b a n k i n g d e p a r t m e n t . I t is e x p e c t e d t h a t
a s a r e s u l t a n e w c h a r t e r w ill b e i s s u e d
to th e b a n k in th e n e a r f u t u r e .
N e w B a n k O rg a n iz e d
A t C o n d e , S o u t h D a k o t a , lo c a l m e n
h a v e jo in e d to fo r m th e P e o p le s B a n k .
T h e n e w b a n k h a s $ 2 0 ,0 0 0 c a p i t a l a n d
$ 2 ,0 0 0 u n d i v i d e d p r o f its .
T h e b a n k is o w n e d b y C o n d e m e n o n ly ,
no o n e o f w h o m h a s m o re th a n 10 s h a re s
o f th e 200.
T h e s to c k h o ld e rs a r e a n ­


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

M.

GEO. A. ST A R R IN G
S e c re ta ry

n o u n c e d a s f o l lo w s , t h e s t a r b e i n g p l a c e d
b e fo re th e n a m e s o f d ir e c to r s :
* E . H . R o b e r t s o n , H . H . H a y d la u f t ',
* J o h n E v a n s , L. C. V a n O ra u m , E . R .
P la c e , A n t o n L e n z , M . P . H y n e s , E d .
L e n z , * N e il G . H e r m a n , * J o e L e n z , B e r t
L e n z , J o h n H y n e s , A n to n K la p p e ric h , L .
D . M ile s , D . R o b e r t s o n , J a s p e r K l a p p e ­
r i c h , W m . S im m o n s , H . J . P l a c e , * W . A .
G e a r y , N . J . H a i g h t , B e r t M ile s , P a u l
B ro w n , * J a m e s C u ts h a w , * E a r l B a e r ts c h .

S ta n d a rd iz a tio n o f b a n k fo rm s w as
o n e o f th e p r in c ip a l to p ic s d is c u s s e d a t
th e m e e tin g .
N e w B a n k f o r C o lm a n
T h e o rg a n iz a tio n o f th e N ew F i r s t N a ­
t i o n a l B a n k o f C o le m a n , S o u t h D a k o t a ,
is p r a c t i c a l l y c o m p l e te d a n d t h e a m o u n t
o f th e c a p ita l, s u r p lu s a n d u n d iv id e d
p ro f its d e c id e d u p o n . T h e d ir e c to r s h a v e
b e e n s e le c te d a n d th e o r g a n iz a tio n m e e t­
in g w ill b e h e ld s h o r t l y .

C h a n g e C a s h ie rs
A c h a n g e o f c a s h i e r s is a n n o u n c e d a t
th e D e u e l C o u n ty N a tio n a l B a n k , C le a r
L a k e , S o u th D a k o ta .
C o n ra d Jo h n so n ,
p r e s e n t in c u m b e n t, h a s a c c e p te d a p o s i­
t i o n a s m a n a g e r f o r t h e M a y t a g W a s h in g M a c h in e C o m p a n y , in a la r g e d is tr ic t
s u r ro u n d in g D a v e n p o rt, Io w a .
T h e n e w m a n to a s s u m e t h e d u t i e s o f
c a s h i e r is A u g u s t B e r g e r o f P a r k R a p i d s ,
M in n e s o ta .
M r. B e rg e r h a s b e e n c o n ­
n e c te d f o r so m e tim e w ith th e S ta t e B a n k ­
i n g D e p a r t m e n t o f M i n n e s o t a , b u t is
re a lly a n a tiv e b o y f r o m C a n b y , M in n e ­
s o t a , a n d is w e ll k n o w n in t h i s v i c i n i t y .

SO UTH D A K O TA N EW S
T h e E x e c u t i v e C o u n c il o f t h e S o u t h
D a k o ta
B a n k e rs
A s s o c ia tio n
re c e n tly
v o t e d to h o ld i t s 1 9 2 7 a n n u a l c o n v e n t i o n
on F r id a y a n d S a tu r d a y , J u ly 1 s t a n d
2 n d a t D e a d w o o d , w h ic h w a s t h e p l a c e
s e le c te d b y th e 1 926 c o n v e n tio n .
T h is
d a t e w ill g iv e m a n y b a n k e r s a n o p p o r t u ­
n i t y t o k il l tw o b i r d s w ith o n e s to n e , th e
o th e r b ir d b e in g a t r i p th r o u g h th e b e a u ­
ti f u l B la c k H ills a n d a n o p p o r tu n ity to
w itn e s s th e f a m o u s T r i - S t a t e R o u n d - U p
a t B e ll e F o u r c h e o n J u l y 4 t h a n d d a y s
f o l lo w in g . A l a r g e a t t e n d a n c e is a n t i c i ­
p a te d .

F o r C le a rin g H o u se
T h e D a l l a s C o m m e r c ia l C lu b o f D a l l a s ,
S o u th D a k o ta , a n d a d e le g a tio n o f f a r m ­
e r s u n i o n m e n m e t r e c e n t l y a t t h e fire h a l l
f o r th e p u rp o s e o f ta lk in g o v e r th e m a t­
te r r e g a r d in g th e e s ta b lis h in g o f a c le a r ­
in g h o u s e in D a l l a s . I t w a s a g r e e d t h a t
s u c h a n in s ti tu t io n w a s n e e d e d in D a lla s .
A c o m m itte e c o m p o s e d o f N . H . S e a rs ,
E d B rim m e r, W ill C a rro ll a n d A lb e rt
S c h u ltz w a s a p p o in te d to p u t th e d e a l
o v e r . A n o t h e r m e e t i n g w ill b e h e ld , a t
w h i c h t i m e i t w ill b e k n o w n w h e t h e r t h e
p la n c a n b e w o rk e d o u t.
D e a d w o o d in 1927
D e a d w o o d w ill e n t e r t a i n t h e m e m b e r s
o f th e S o u th D a k o ta B a n k e r s A s s o c ia tio n
a t th e ir a n n u a l c o n v e n tio n in 1927.
T h e e x e c u tiv e c o m m itte e o f th e a s s o ­
c ia tio n , m e e tin g in H u r o n re c e n tly , s e t
J u l y 1 s t a n d 2 n d a s th e d a te s f o r th e
1927 g a th e r in g . T h e se d a te s f a ll o n F r i ­
d a y a n d S a t u i ’d a y .
T h i s a r r a n g e m e n t w ill g iv e t h e b a n k ­
e rs a li tt le lo n g e r tim e in th e B la c k H ills
f o r th e d a y a f t e r th e c o n v e n tio n a d ­

P r e s id e n t E in e r J o h n s o n h a s a p p o in te d
a “ C o m m itte e o n S t a n d a r d i z e d F o r m s a n d
A n a ly s i s o f A c c o u n ts ,” c o n s i s t i n g o f
C h a i r m a n F r e d B . S t i l e s , v ic e p r e s i d e n t
o f th e F ir s t N a tio n a l B a n k o f W a te rto w n ; D . H . L i g h t n e r , c a s h i e r o f t h e C i t i ­
z e n s T r u s t & S a v in g s B a n k , A b e rd e e n ,
a n d H . E . E d m u n d s , c a sh ie r o f th e A m e r­
ic a n S ta t e B a n k o f Y a n k to n . T h is c o m ­
m i t t e e w ill e m p l o y le g a l t a l e n t i n s t a n d ­
a r d i z a t i o n o f f o r m s a s i t s f i r s t jo b . T h e
in s p irin g a d d re s s o f H a r r y D. B a k e r o f
th e W is c o n s in B a n k e r s A s s o c ia tio n a t
th e 1926 S o u th D a k o ta B a n k e rs c o n v e n ­
t i o n w a s in p a r t r e s p o n s i b l e f o r t h i s a c ­
ti o n .
P r e s id e n t J o h n s o n r e c e n tly a p p o in te d
a c o m m i t t e e to c o n f e r o n t h e m a t t e r o f
a s e rv ic e c h a rg e o n o u t- o f-to w n c re a m e ry
c h eck s. T h e m e m b e rs a re L . M . L a rs e n ,
c a s h ie r J e r a u l d C o u n ty B a n k , W e s s in g t o n S p r i n g s ; E . W . R a d e k e , v ic e p r e s i ­
d e n t F i r s t N a tio n a l B a n k , A le x a n d ria ,
a n d L o u is J a c o b s , p r e s i d e n t E x c h a n g e
B a n k , L e n n o x . T h e c o m m itte e m e t a n d

72

THE

N O K T II W E S T E K N

BANKER

October, 1926

as a r e s u lt o f th e ir d e lib e ra tio n s m a k e
th e fo llo w in g re c o m m e n d a tio n s :
1 . A c h a r g e o f a t l e a s t 50 c e n t s p e r
$100 o r m a jo r p o r tio n th e r e o f w h e re th e
c r e a m e r y c o m p a n y k e e p s n o b a l a n c e in
th e b a n k . F o r s m a lle r a m o u n ts , a t le a s t
5 c e n ts f o r e v e ry $10.
Or

Or
t h i r t y - s i x b u s i n e s s fir m s .
R e d p la c a rd s
3.
A c h a r g e o f n o t le s s t h a n 3 c e n t s p e r h a v e b e e n p o s t e d i n t h e v a r i o u s p l a c e s o f
ite m w h e re th e b a n k c h a rg e s b y th e c h e c k .
b u s in e s s o ffe rin g $ 2 7 5 c a s h r e w a r d f o r
T h e c o m m itte e h a s r e q u e s te d a ll m e m ­
t h e c a p t u r e , d e a d o r a li v e , o f a p e r s o n o r
b e r b a n k s in th e s t a te to f a l l in lin e w ith
p e rs o n s ro b b in g a n y o f th e b a n k s o r co ­
its re c o m m e n d a tio n s .
o p e r a t i n g f ir m s .
O ne n o n m e m b e r s to re

2. A c h a r g e o f n o t le s s t h a n 25 c e n t s
p e r $100 w h e re th e c re a m e ry c o m p a n y
h a s a b a la n c e o f a t le a s t $100.

c i a t i o n h a s d o n e s o m e e f f e c ti v e w o r k i n
o rg a n iz in g a n E d m u n d s C o u n ty P r o te c ­
tiv e A s s o c ia tio n
in c o o p e r a t i o n w i t h

The Edm unds County B a n k e r s A s s o ­

Will Your Customers Feed
Their Corn?
If so— have you sufficient outlet for
YOUR FEEDER PAPER?

The Live Stock National Bank
Located at the Stock Yards
Sioux City, Iowa
Is especially well equipped to handle
Live Stock Loans
YOUR ACCOUNT IS INVITED

w a s ro b b e d b u t th e r e w a r d w a s p a id ju s t
t h e s a m e , t h e fiv e p e r s o n s i m p l i c a t e d b e ­
in g s e n t to th e p e n it e n ti a r y .
T h e n e w l y o r g a n i z e d C a m p b e l l- M c ­
P h e r s o n C o u n ty A s s o c ia tio n h a s a d o p te d
a s c h e d u le f o r m is c e lla n e o u s s e rv ic e
c h a rg e s a n d a s e rv ic e c h a rg e o f 50 c e n ts
o n c h e c k i n g a c c o u n t s w h ic h a v e r a g e le s s
th a n $25.
T h e C h a r l e s M i x C o u n t y A s s o c i a t i o n is
in v e s tig a tin g
th e
m a tte r
of
s e rv ic e
c h a rg e s a n d e x c h a n g e o n o u t-o f-to w n
c re a m e ry c h e c k s, th e s a m e to be r e p o r te d
u p o n b y th e s e c r e ta r y a t th e n e x t m e e t­
in g .
T h e A s s o c i a t i o n r e c e n t l y v o t e d to
h o ld m o n th ly m e e tin g s d u r in g th e f a ll
a n d e a rly w in te r.
T h e H a n s o n C o u n ty B a n k e r s A s s o c ia ­
t i o n w ill m e e t o n O c t o b e r 1 5 t h t o d is c u s s
th e m a tte r o f re d u c in g in te r e s t r a te s on
t i m e d e p o s i t s to 4 p e r c e n t a n d a d o p t a
s e r v i c e c h a r g e o n s m a ll c h e c k i n g a c ­
c o u n ts .

Carl N itz h a s b e e n a d d e d t o t h e l i s t o f
e m p lo y e e s o f th e F a r m e r s S ta t e B a n k o f
B i g S t o n e C it y .
T h e T a b o r S ta te B a n k h a s in s ta lle d a
n e w lin e o f fix tu re s .

THE

of ihr (Etiy of Nan fork
57 B R O A D W A Y

C apital
.
.
. $ 4 0 ,0 0 0 ,0 0 0 .0 0
S urplu s and Profits .
3 6 ,7 6 4 ,1 2 2 .2 3
D eposits (J u n e 30, 1 9 2 6 ) 8 1 3 ,4 2 5 ,8 6 9 .6 5

H ANNA TIO
ONV
ER
AL
BANK

OFTHE CITYOFNEWYORK
Established1851

OFFICERS
ALBERT H. WIGGIN
Chairm an of the Board

GATES W. McGARRAH
r

Chairm an

JOHN Me HUGH

of the E x ecu tiv e
Comm ittee

P resid en t

:

ROBERT L. CLARKSON
V ice Chairm an of the Board
V ice P résid en ts

SAMUEL H. M ILLER
CARL J. SCHMIDLAPP
REEVE SCHLEY
SHERRILL SMITH
HENRY OLLESHEIMER
ALFRED C. ANDREWS
ROBERT I. BARR

GEORGE E. WARREN
GEORGE D. GRAVES
• ' FRANK O. ROE
- HARRY II. POND
SAMUEL S. CAMPBELL
WIÙ1ÎAM E. LAKE
M. G. B. W HELPLEY

V ice P resid en t and Cashier

WILLIAM T. HOLLY
Seco n d V ice P residen ts

ALEXANDER S. WEBB
ALFRED IV. HUDSON
FR ED ERICK W. GEHLE
JAMES L. MILLER
GEORGE W. SIMMONS
JOSEPH C. ROVENSKY
EDWIN A. LEE
•
BENJAMIN E. SMYTHE
WILLIAM E. PURDY
JOSEPH PULVERMACHER
GEORGE H. SAYUOR
LEON H. JOHNSTON
M. HADDEN HOWELL
FRANKLIN H. GATES
A r t h u r M. A i k e n
Com ptroller

THOMAS R ITCH IE

■■

;

Foreign and Trust D epartm ent Facilities


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

Capital
.
.
.
$5,000,000
Surplus and Profits . $25,000,000

THE

October, 1926

NOR T H W E S T E R N

BA N K E R
a n d J a m e s R in g g o ld , p re s id e n t,
S ta te s N a tio n a l B a n k , D e n v e r.

N ebraska
Bank News
Officers Nebraska Bankers
Association
.......................... -—I . R- A lte r
G ra n d Is la n d
C h airm a n of th e E x e c u tiv e
C o u n cil........-................... P . L . H a ll, J r .
G reenw ood
S e c re ta ry ........................ -......W . B . H u g h e s
O m aha
T r e a s u r e r ...............................F . W . T hom as
O m aha
..........J . P . P a lm e r
G e n eral C o u n sel
O m aha

P r e s id e n t

I. R. A L T E R
P r e s id e n t

A m o n g th e N e b ra s k a b a n k e rs w h o h a v e
m a d e re s e rv a tio n s f o r th e n a tio n a l c o n ­
v e n tio n o f th e A m e ric a n B a n k e rs A s s o ­
c i a t i o n a r e J . R . C a in , J r . , a n d M . D .
C a m e ro n , P e te r s N a tio n a l B a n k , O m a h a ;
F . C. H o r a c e k a n d J a c o b H o r a c e k , U n io n
S ta te B a n k , O m a h a ; W a lte r W . H ead ,
O m a h a N a tio n a l B a n k , O m a h a ; W . H .
L e a rn e d , S ta te B a n k o f H a ig le r, H a ig le r ;
C. L . C o u n t r y m a n , C i t i z e n s B a n k , O g a lla l a ; E . H . S u th e r la n d , C itiz e n s B a n k ,
N o r f o lk ; J . G . H o h l, F a r m e r s & M e r ­
c h a n t s B a n k , P r a g u e ; W . H . M c D o n a ld ,
M c D o n a ld S t a t e B a n k , N o r t h P l a t t e ;
J a m e s F . O ’D o n n e l l , N e b r a s k a S t a t e
B a n k , O ’N e ill .
F . H . D a v is , p r e s i d e n t o f t h e F i r s t N a ­
t i o n a l B a n k , O m a h a , is c h a i r m a n o f a
c o m m itte e o f th e G r e a te r O m a h a A s s o ­
c ia tio n , to s tu d y m e a n s o f m a k in g O m a h a
a g r e a t e r in s u ra n c e c e n te r.
M rs . A lb e r t L . S c h a n tz , w ife o f th e
p r e s id e n t o f th e S ta te B a n k o f O m a h a ,
h a s b e e n e le c te d a m e m b e r o f th e b o a rd
o f d ir e c to r s , b e c o m in g th e f ir s t N e b r a s k a
w o m a n to h o ld s u c h a p o s t. W it h m o re
th a n s ix m illio n d o lla rs in d e p o s its , th e
S t a t e B a n k o f O m a h a is t h e l a r g e s t in
N e b ra sk a .
D . C. E l d r e g e , w h o h a s b e e n a d i r e c t o r
o f th e S ta te B a n k o f O m a h a f o r m a n y
y e a r s , h a s b e e n e l e c t e d v ic e p r e s i d e n t .
H e w ill b e i n a c t i v e , i t is s a i d . M r - E l d r e d g e is a ls o v ic e p r e s i d e n t o f t h e H a r d ­
in g C re a m e ry C o m p a n y o f O m a h a .
F o u r s p e c ia l c a rs o f b a n k e rs , b o u n d f o r
th e A m e ric a n B a n k e rs A s s o c ia tio n c o n ­
v e n t i o n a t L o s A n g e le s ,, w i l l b e a t t a c h e d
to s p e c ia l tr a i n s f o r th e c o a s t a t O m a h a ,
S e p t e m b e r 2 9 th .
O n e o f t h e c a r s w ill
c o n t a i n O m a h a b a n k e r s , tw o w ill h a v e
b a n k e r s f r o m D e s M o in e s , a n d th e f o u r th
w ill co m e f r o m M in n e a p o lis . I n O m a h a
t h e b a n k e r s w i l l b e e n t e r t a i n e d f r o m 11
a . m . to 5 : 3 0 p . m . A m o n g t h e n a t i o n ­
a l l y p r o m i n e n t b a n k e r s w h o w ill b e o n
b o a r d th e t r a i n s w h e n th e y le a v e O m a h a
w ill b e O s c a r W e l l s , B i r m i n g h a m , A la .,
p r e s i d e n t o f t h e A . B . A . ; M e l v in T .
T r a y l o r , C h ic a g o , f i r s t v ic e p r e s i d e n t a n d
th e p r e s id e n t- e le c t; T h o m a s R . P re s to n ,


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

WM. B. H U G H ES
Secretary

C h a t t a n o o g a , T e n n ., s e c o n d v ic e p r e s i ­
d e n t ; C r a i g B . H a z le w o o d , C h ic a g o , s e c ­
o n d v ic e p r e s i d e n t - e l e c t ; E . E . R o o n e y
a n d C . F . M i ll s , F i r s t N a t i o n a l B a n k ,
B o s t o n ; F r a n k H . S i s s o n a n d C h a ll e n R .
P a rk e r , G u a ra n ty T ru s t C o m p an y , N ew
Y o rk C ity ; G e o rg e W . B lo o d g o o d a n d D .
D e x t e r D a v i s , K o u n t z B r o s ., N e w Y o r k
C ity ; A r t h u r R e y n o ld s , p r e s id e n t o f th e
C o n t i n e n t a l a n d C o m m e r c i a l B a n k , C h i­
c a g o ; N a th a n I). P r in c e , H a r t f o r d C o m ­
m e rc ia l T r u s t C o m p a n y , H a r tf o r d , C o n n . ;
R u d o lf S. H e c h t, H ilb e r n ia B a n k a n d
T r u s t C o m p a n y , N e w O r le a n s ; C h a rle s
A . F a ir c lo th e s , N a tio n a l C ity
B ank,
T a m p a , F l a .; W illia m H . H e a th , c h a ir ­
m a n , F e d e r a l R e s e rv e B a n k , C h ic a g o ;
G ra n t M c P h e r rin , p re s id e n t, S ta te B an k .
D iv is io n , A m e r i c a n B a n k e r s A s s o c i a t i o n ,

C O N V E N T IO N S P E A K E R S
F orm er G overn or F rank O. L ow d en ,
of I llin o is , and Joh n G. L on sd ale,
p resid en t of th e N a tio n a l B an k of
C om m erce, St. L o u is, h ead th e list ot
sp eak ers for the 1926 co n v en tio n of
the N eb rask a B an k ers A sso cia tio n , to
be h e ld at L in co ln , N o v em b er 11th
and 12th.
O ther sp eak ers w ill b e:
A. F. D aw son , p resid e n t, F irst N a ­
tio n a l B an k , D aven p ort, Iow a.
A nna C. K ram p h , assistan t cashier,
F irst N ation al B an k , N orth P latte,
N eb .
Dr. Joh n E. K irsh m an , p rofessor of
finance, U n iv ersity of N eb rask a.
T. B ruce Bold*, U n iv ersity of N e ­
braska.
I. R. A lter, G rand Isla n d , p resid en t,
N ebraska B an k ers A sso cia tio n .
Earl K lin e , L in co ln , regen t, U n iv e r ­
sity of N eb rask a.
Officials and tech n ica l exp erts from
the c o lle g e of agricu ltu re an d state
u n iversity w ill also sp eak on q u estion s
of finan ce c lo s e ly co n n ected w ith the
agricu ltu ral n eed s of the state.
B u sin e ss session s of the con ven tion
w ill h e h eld at the state c o lle g e of
agricu lture.
E n tertain m en t featu res w ill h e c e n ­
tered arou n d a dan ce to b e g iven at
the u n iv ersity field h o u se, to w h ich
the stu d en ts w ill b e in v ited , on e n ig h t;
and a th eater party at w h ich th e u n i­
versity p layers w ill give a p rod u ction
e sp e c ia lly for th e bankers.
A g o lf to u rn am en t w ill b e h eld on
the Saturday fo llo w in g th e co n v en tio n .

73
U n ite d

B e tte r e d c o n d itio n s in th e N o r th P la t te
V a lle y a r e r e p o r te d b y W . J . S ta ffo rd ,
c a s h ie r o f th e S c o tts b lu ff N a tio n a l B a n k ,
w h o s a i d : “ W e , in t h i s v a l l e y , a r e p a r ­
t i c u l a r l y f o r t u n a t e i n t h a t o u r m o n e y is
c o n s ta n tly w o rk in g .
L o a n s m a d e to
fin a n c e f a r m e r s in th e s p r in g a r e p a id a t
t h e c lo s e o f t h e b e e t h a r v e s t , b u t g o o u t
a g a in im m e d ia te ly to fin a n c e s to c k m e n
w h o b r i n g i n c a t t l e , s h e e p a n d h o g s to
f a t t e n d u r in g th e w in te r .
D e p o s its a re
p a rtic u la rly
lo w
d u rin g
th e
sum m er
m o n th s , b u t w ill sh o w a n in c r e a s e o f 40
p e r c e n t w ith in th e n e x t 60 d a y s . C o n ­
d i t i o n s o f lo a n s a r e i m p r o v e d i n t h a t ,
w h ile t h e a m o u n t s h a v e n o t b e e n m a t e ­
r i a l l y r e d u c e d , f r o z e n lo a n s h a v e b e e n
s u p p la n te d b y liq u id lo a n s .”
V a n E . P e te r s o n , s e c r e ta r y o f th e N e ­
b r a s k a g u a r a n t y f u n d c o m m is s io n , h a s
p u b lis h e d a b o o k le t o f f a c ts a b o u t th e
o p e r a t i o n o f t h e s t a t e b a n k g u a r a n t y la w
o f th e s ta te . A m o n g th e p o in ts h e s tre s s e s
a re th e s e :
T h e N e b ra s k a d e p o s ito rs ’
g u a r a n t y f u n d p r o t e c t s $ 2 8 8 ,0 0 0 ,0 0 0 d e ­
p o s i t e d b y 5 5 0 ,0 0 0 p e o p le i n t h e 8 9 6 s t a t e
b a n k s . N o N e b ra s k a s t a te b a n k d e p o s i­
t o r lia s l o s t a c e n t i n t h e p a s t f i f t e e n
y e a rs , in s p ite o f th e fin a n c ia l d e p re s s io n
w ith in t h a t p e rio d .
S in c e t h e g u a r a n t y
la w b e c a m e e f f e c ti v e , 1 5 5 b a n k s h a v e
b e e n c lo s e d a n d d e p o s i t s o f m o r e t h a n
$ 2 8 ,0 0 0 ,0 0 0 p a i d i n f u l l . O f t h i s a m o u n t
s t a t e b a n k s h a v e c o n t r i b u t e d $ 1 1 ,5 0 0 ,0 0 0 .
D u rin g th e p a s t y e a r th e f u n d h a s p a id
o u t a n a v e r a g e o f $ 2 5 ,0 0 0 t o d e p o s i t o r s
i n f a i l e d b a n k s . T h e l a w , w h ic h h a s b e e n
s u s ta in e d b y th e U n ite d S ta te s s u p re m e
c o u rt, p ro v id e s t h a t a ll s t a te b a n k s c a n
b e a s s e s s e d y e a r l y .6 o f 1 p e r c e n t o f a v e r ­
a g e d a ily d e p o s its . •
R e c e n t b a n k ro b b e r ie s in N e b ra s k a in ­
c lu d e t h e B l o o m i n g t o n S t a t e B a n k , w h e r e
th ie v e s b la s te d a v a u lt d o o r a n d to o k
$ 3 ,0 0 0 , a n d t h e c o n s o l i d a t e d P i o n e e r a n d
S ta t e B a n k s o f E w in g , w h e re th ie v e s to o k
$10 a f t e r u n s u c c e s s fu lly p r y in g o p e n
m o n e y d ra w e rs.
F . W . C la r k e , w h o w a s p r e s i d e n t o f t h e
N e b ra s k a N a tio n a l B a n k w h e n it w as
m e r g e d w i t h t h e F i r s t N a t i o n a l B a n k in
J u ly , 1923, h a s r e c e n tly o rg a n iz e d th e
N e b r a s k a N a tio n a l C o m p a n y , o f w h ic h h e
is p r e s i d e n t , f o r t h e l e n d i n g o f m o n e y to
t h o s e e n g a g e d i n f a r m i n g a n d li v e s t o c k
b u sin e ss.
I n o r d e r to in c re a s e its sa v in g s a c ­
c o u n ts , th e F i r s t S ta t e B a n k o f A llia n c e ,
N e b r a s k a , c o n d u c t e d a c o n t e s t i n w h ic h
p r i z e s w e r e g iv e n f o r t h o s e w h o t u r n e d in
th e g r e a te s t n u m b e r o f s a v in g s a c c o u n ts .
A f i r s t p r i z e o f $ 5 0 w a s w o n b y M is s A lic e
- p r i c e s o f f ^ I O O w e re
p a id .

74

THE

NORTHWESTERN

BANKER

October, 1926
N ew Banking Home

FE E D E R LO A N S F IN A N C E D
Write Us

Live Stock National Bank
Union Stock Yards —Omaha

(Quick Service on Collection of Live Stock Proceeds at Stock Yards)

A r c h it e c t ’s d raw in g o f th e new U n io n S ta te
B an k , O m aha
T h is is a n a r c h i t e c t ’s s k e tc h o f th e
U n io n S t a t e B a n k b u i l d i n g , u n d e r c o n ­
s tru c tio n
a t N in e te e n th
and
F a rn a m
s t r e e t s , O m a h a . T h e b u i l d i n g w ill b e c o m ­
p l e t e d in t h e s p r i n g o f 1 9 2 7 , a c c o r d i n g to
P re s id e n t F . C. H o ra c e k .
T h e s t r u c t u r e , 68 b y 1 3 2 , w ill b e s e v e n
s t o r i e s in h e ig h t , th e b a n k o c c u p y i n g a ll
th e f i r s t flo o r e x c e p t r e t a i l s h o p r o o m s
o n F a r n a m s t r e e t . T h e u p p e r s ix s t o r ie s
w ill b e f o r office r e n t . T h e b u i l d i n g w ill
b e e n t i r e l y o f I n d i a n a lim e s to n e e x t e r i o r ,
o f m a r b l e a n d g r a n o l i t h i c flo o rs , a n d f i r e ­
p r o o f . C o s t, w i t h s ite , is $ 8 0 0 ,0 0 0 . J o h n
L a te n s e r & S o n s, O m a h a , a re th e a r c h i­
te c t s .
C o n c r e te is c o m p l e te d n o w to the*
f o u r t h flo o r.

The real difference in banks lies not in
the buildings th ey occupy but in th e men
and women who conduct them . Our bank
building m ay be superior or inferior to
other bank buildings nearby or far away,
but in sid e our bank are hum an b ein g s v it­
a lly in terested in ren d erin g a service to
our custom er bankers which will make
their job easier and th eir grow th more
rapid. W e solicit your business because
of our b elief in our ability to sa tisfy you.

J. O. W entworth, o f t h e P e t e r s N a ­
t i o n a l B a n k a n d T r u s t C o m p a n y , w h o is
s e c r e ta r y o f th e N e b ra s k a 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 tio n , a tte n d e d th e
a n n u a l F a r m M o rtg a g e B a n k e rs A s s o c ia ­
t i o n a t R ic h m o n d , V a ., S e p t e m b e r 2 1 s t
to 2 3 rd .
The Carson N ation al Bank o f A u b u r n ,
N e b r a s k a , s e c o n d o ld e s t b a n k in N e ­
b ra s k a , h a s b e g u n its f o r ty - f o u r th y e a r
o f s e r v i c e i n A u b u r n . I t w a s f o u n d e d in
1857, a s th e F i r s t N a tio n a l B a n k o f
B ro w n e v ille , N e b ra s k a , b y J o h n L . C a rson.
L a te r it w a s re m o v e d to A u b u rn
a n d n a m e d a f t e r its fo u n d e r . B ro w n e v ille
h a s d is a p p e a re d fr o m th e m a p o f N e ­
b ra sk a .
R educes In te re st R ates

THE STOCK YARDS NATIONAL BANK
A N D

THE STOCK YARDS TRUST &SAVINGS B A N K

o f CHICAGO


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

T h e F e d e r a l L a n d B a n k o f O m a h a , w ith
t h e a p p r o v a l o f th e F e d e r a l F a r m L o a n
B o a rd , h a s re d u c e d th e in te re s t r a t e on
n e w lo a n s to 5 p e r c e n t p e r a n n u m , e ffe c ­
ti v e O c to b e r 1, 1 9 2 6 . T h e f u l l i m p o r t a n c e
o f th is an n o u n c e m e n t c a n n o t b e u n d e r­
s to o d w i t h o u t a k n o w le d g e o f t h e r e c o r d
o f th e F e d e r a l L a n d B a n k s in c e i t s o r g a n ­
i z a t i o n n in e y e a r s a g o .
T h e F e d e r a l L a n d B a n k is a f a r m e r s ’
c o o p e r a t i v e i n s t i t u t i o n , e s t a b li s h e d b y t h e

October, 1926

T 1IE

U n ite d S t a t e s G o v e r n m e n t to e n a b le f a r m ­
e r s to b o r r o w m o n e y o n t h e i r l a n d s a t
lo w e r i n t e r e s t r a t e s a n d o n lo n g e r a n d
b e t t e r te r m s . F u n d s a r e o b t a i n e d f r o m th e
s a le o f F e d e r a l L a n d B a n k b o n d s , w h ic h
a r e s e c u r e d b y th e c o lle c tiv e m o r t g a g e s o f
its b o rro w e rs.
W h e n th e F e d e r a l L a n d B a n k w a s
e s ta b lis h e d n in e y e a rs a g o , its r a te on
f a r m lo a n s w a s 5 p e r c e n t p e r a n n u m .
L a t e r o n , o n a c c o u n t o f th e h ig h i n t e r e s t
r a t e p r e v a ilin g d u r in g a n d f o llo w in g th e
w a r , t h e i n t e r e s t r a t e w a s s u c c e s s iv e ly i n ­
c r e a s e d , f i r s t t o 5 Yz P e r c e n t a n d t h e n to
6 p e r c e n t p e r a n n u m . I n 1 9 2 2 , th e lo a n
r a t e w a s r e d u c e d to 5 1 4 p e r c e n t, a n d i n
J u n e , 1 9 2 5 , a g a i n r e d u c e d to 5 ^ 4 p e r
c e n t.
T h is b e in g a c o o p e r a tiv e - s y s te m , th e
n e t p r o f i t s o f t h e b a n k b e lo n g to b o r ­
r o w e r s in t h e s h a p e o f d i v i d e n d s o n b o r ­
r o w e r s ’ s to c k , a s e a c h b o r r o w e r , a t th e
tim e h e m a k e s h is lo a n , ta k e s 5 p e r c e n t
o f h is l o a n i n s to c k .
T he F e d e ra l L an d B ank o f O m aha has
a n e x c e p t i o n a l l y g o o d r e c o r d in n e t e a r n ­
in g s a n d in t h e p a y m e n t o f d iv id e n d s .
S e m ia n n u a l d iv id e n d s h a v e b een p a id
sin c e th e b e g in n in g a t a n a n n u a l r a te o f
n o t le s s t h a n 9 p e r c e n t a n d a s h ig h a s
1 3 p e r c e n t.
T a k i n g i n t o c o n s i d e r a t i o n t h e d iv i d e n d s
p a i d b y th e F e d e r a l L a n d B a n k s in c e it s
o r g a n i z a t i o n b o r r o w e r s w h o se lo a n s w e re
m a d e n in e y e a r s a g o a t 5 p e r c e n t p e r
a n n u m h a v e r e a l l y o n ly p a i d 4 % p e r c e n t

NO R T H W E S T E R N

BANKE R

p e r a n n u m a s t h e d iv i d e n d s h a v e s e r v e d to
r e d u c e t h e r a t e t o t h a t fig u r e . S o , t a k i n g
in t o c o n s i d e r a t i o n t h e p a s t d iv i d e n d r e c o r d
o f th e F e d e r a l L a n d B a n k o f O m a h a , a n d
t h e r e is e v e r y r e a s o n to b e lie v e t h a t it
w ill b e f u l l y a s g o o d in t h e f u t u r e , t h i s
i n t e r e s t r a t e o f 5 p e r c e n t, t o g e t h e r w ith
t h e d i v i d e n d s r e c e iv e d b y b o r r o w e r s , r e a l l y
m eans a ra te o f 4 % p e r cent p e r an n u m .
T h is is th e lo w e s t r a t e e v e r m a d e o n f a r m
lo a n s i n t h i s t e r r i t o r y a n d w ill r e s u l t in
a n im m e n s e s a v i n g to t h e f a r m e r s .
T h e F e d e r a l L a n d B a n k o f O m a h a is
a b le to a c c o m p lis h t h i s s p l e n d i d r e s u l t
th r o u g h i t s l o n g - ti m e a m o r t i z a t i o n p l a n ,
w h e r e b y , b y p a y m e n t o f 1 p e r c e n t in
a d d i t i o n t o t h e i n t e r e s t r a t e a n n u a l l y , th e
lo a n is p a i d i n f u l l in 36 y e a r s , th u s s a v ­
i n g t h e c o s ts o f r e n e w a l a n d c o m m is s io n s
e v e r y five y e a r s , a s w a s th e c a s e b e f o r e
th e F e d e r a l L a n d B a n k w a s e s t a b li s h e d .
F e d e ra l L a n d B a n k b o n d s a re n o w v e ry
p o p u l a r w ith i n v e s t o r s a n d c o m m a n d a n
i n t e r e s t r a t e lo w e r t h a n a n y o t h e r s e ­
c u rity sav e G o v e rn m e n t b o n d s.
A la r g e
is s u e o f 4 1 4 p e r c e n t b o n d s w e r e s o ld
r e c e n t l y a t a p r e m iu m . T h e O m a h a F e d ­
e r a l L a n d B a n k D i s t r i c t c o m p r is e s th e
S ta te s o f Io w a , N e b ra s k a , S o u th D a k o ta
a n d W y o m in g .
I t s p r e s e n t c a p i t a l is
a b o u t $ 7 ,0 0 0 ,0 0 0 .0 0 , a n d i t h a s a t p r e s e n t
lo a n s o u t s t a n d i n g o f a b o u t $ 1 3 5 ,0 0 0 ,0 0 0 .0 0 .
I t is th e l a r g e s t f a r m e r s ’ c o ­
o p e r a t i v e i n s t i t u t i o n i n t h e w o r ld .
O w in g to th e h ig h i n t e r e s t r a t e s c a u s e d
b y th e w a r, th e F e d e r a l L a n d B a n k w a s

o b lig e d , d u i i n g a n d f o l lo w in g th e w a r , to
e x te n d th e c a lla b le p e r i o d o n i t s b o n d s to
t e n y e a r s , a n d p a y a s h ig h a s 5 p e r c e n t
a n d 4 % p e r c e n t in te re s t o n its b o n d s
s o ld a t t h a t tim e .
A s th o s e b o n d s a re
n o t c a ll a b le f o r a f e w y e a r s y e t , t h i s r e ­
d u c t i o n o f th e i n t e r e s t r a t e w ill n o t i n ­
c lu d e lo a n s n o w o n o u r b o o k s.
I n f a i r n e s s a n d j u s t i c e to a ll b o r r o w e r s ,
it is c o n s i d e r e d t h a t lo a n s m a d e w ith th e
p r o c e e d s o f th o s e h ig h i n t e r e s t b o n d s
s h o u l d n o t b e r e d u c e d u n t i l th e a p p r o a c h
o f t h e c a ll a b le p e r i o d o n th o s e b o n d s .

T h e N e b ra s k a N a tio n a l b a n k o f H a s t­
in g s h a s p u r c h a s e d a s i t e , 4 4 b y 1 5 0 f e e t ,
w h ic h i n c l u d e s t h e p r e s e n t b a n k b u i l d i n g ,
a n d h a s a n n o u n c e d p la n s f o r th e e re c tio n
o f a s i x - s t o r y b a n k a n d office b u il d in g .
T h e b a n k p a i d $ 7 2 ,5 0 0 f o r i t s l a n d , b u y ­
in g f r o m M r s . C . H . D i e t r i c h a n d M r s .
H . K . S m ith .

D e p o s i t s in t h e N e b r a s k a s t a t e b a n k s
a t t h e c lo s e o f b u s i n e s s J u n e 3 0 , 1 9 2 6 ,
a m o u n t e d to $ 2 8 4 ,1 3 0 ,9 3 5 , a d e c r e a s e o f
$ 1 ,5 2 3 ,9 3 6 f o r t h e t h r e e m o n t h s s i n c e t h e
M a r c h 3 1 s t s t a t e m e n t . K i r k G r ig g s , s e c r e ­
ta r y o f th e s ta te d e p a r tm e n t o f tr a d e
a n d co m m e rc e , a n n o u n c e d 893 s t a te b a n k s
r e p o r tin g th e i r d e p o s its .

O u r h o p e o f h a p p i n e s s l i e s in o u r a b i l i t y
to v i s u a l i z e u s e f u l n e s s .

A Sympathetic
Understanding
of the affairs of our correspondent
banks is the purpose of every officer
of T h e O m aha N ational Bank.
It tempers our business relationships
with a fine spirit of personal friendship.

T h e Om aha N a tio n a l Bank
W alter W . Head, President


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75

76

THE

N O R T H W E 8 TERN

BANKER

October, 1926
Visits in Chadron

F r a n k C o a d o f O m a h a w a s in C h a d ro n ,
N e b r a s k a , r e c e n t l y , t o a t t e n d to b u s i n e s s
m a t t e r s a n d v i s i t o ld f r i e n d s . M r . C o a d
is p r e s i d e n t o f t h e P a c k e r s N a t i o n a l B a n k
o f O m aha.

Change at Monroe

A T THIS bank, the com■ xV p lete mechanism of a
world-wide banking service
is kept a living, human thing
by the personal relationships
existing between our officers
and our customers.
Every Banking Service

: I.

CC Oentral
T rust
M P A N Y O F IL L IN O IS
125

eivuiinuc o.n-ct ui LaSalle
CHICAGO

A t th e l a s t r e g u l a r m e e tin g o f th e
B o a rd o f D ire c to rs o f th e B a n k o f M o n ­
r o e , N e b r a s k a , a c h a n g e w a s m a d e o n th e
b o a r d . M r . P a u l G e r t s c h , w h o is n o w l o ­
c a te d in C a lifo rn ia , r e s ig n e d a n d A . L .
P o l l a r d w a s e l e c t e d i n h i s p la c e .
M r.
P o lla r d b o u g h t a n in t e r e s t in th e b a n k
a t th e tim e h e b e c a m e id e n tif ie d w ith it
la s t s p r in g . M r. P e a rs o n , w h o h a s b e e n
a c t i v e l y e m p l o y e d t h e l a s t e le v e n y e a r s
as m a n a g e r o f th e in s titu tio n , h a s m a d e
a r r a n g e m e n t s t o d e v o te h a l f o f h is t i m e
to th e d u tie s o f th e b a n k a n d th e o th e r
h a l f to o u ts id e b u s in e s s .

To A tten d U n iversity
H a r o ld K illin g e r , w h o h a s h e ld th e p o ­
s itio n a s a s s is ta n t c a s h ie r o f th e In m a n
S ta te B a n k , In m a n , N e b ra s k a , re s ig n e d
h is p o s i t i o n a n d h a s g o n e t o L in c o l n ,
w h e r e h e w ill e n t e r t h e S t a t e U n i v e r s i t y .
E v a n D a v ie s h a s ta k e n th e p o s itio n m a d e
v a c a n t b y th e re s ig n a tio n o f M r. K ill­
in g e r.

F. A. Peterson, Ed F ricke a n d a s s o c i ­
a te s w h o p u rc h a s e d th e M a d is o n N a tio n a l
b a n k fr o m th e S tu a r t in te r e s ts , a re u n ­
d e rs to o d to b e n e g o tia tin g f o r a m e r g e r
w ith th e F i r s t N a tio n a l b a n k o f M a d iso n .
T h e c o n te m p la te d n e w c a p ita l o f th e e n ­
l a r g e d b a n k w o u ld b e $ 1 0 0 ,0 0 0 , t h e s u r ­
p l u s $ 2 0 ,0 0 0 a n d t h e d e p o s i t s a p p r o x i ­
m a t e l y $ 1 ,0 0 0 ,0 0 0 .
V ictor B. Sm ith, a s s i s t a n t t o t h e p r e s i ­
d e n t, O m a h a N a tio n a l b a n k , h a s r e tu r n e d
f r o m a m o n t h ’s v a c a t i o n i n t h e n o r t h e r n
M in n e s o ta la k e c o u n tr y .

When in CHICAGO
E n jo y y o u r s ta y — a t th e n ew

M O R R IS O N
HOTEL
T a l l e s t in t h e W o r ld
46 S t o r i e s H ig h

Closest in the city to offices, theatres,
stores and railroad stations
®

i-

■

1944 Outside Rooms
Each with bath, running
ice water and servidor

Lowest Rates
W rite or w ire f o r rese rv a tio n s


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Federal Reserve Bank of St. Louis

T HE

October, 1926

NORTHWESTERN

N e w U lm , p r e s i d e n t ; C . 0 . S t r o m , H a n s k a , v ic e p r e s i d e n t ; A l b e r t L . G a g , N e w
U lm , s e c r e t a r y - t r e a s u r e r . D u e t o t h e i n ­
c le m e n t w e a th e r, th e a tte n d a n c e w a s
s m a ll, o n l y s e v e n b a n k s b e i n g r e p r e ­
s e n t e d . I t w a s d e c id e d t o h o ld a s p e c i a l
m e e t i n g , p r e c e d e d b y a lu n c h e o n , s o m e
e v e n in g in th e n e a r f u t u r e , f o r th e p u r ­
p o se o f d is c u s s in g im p o r t a n t m a tte r s .

M innesota
Bank News
Officers Minnesota Bankers
Association
P r e s id e n t................... R. E . M acgregor
M in n eap o lis
V ice P r e s id e n t...........A. G. W edge
P a r k R ap id s
T r e a s u r e r _____ ____ A. M . S c h a efer
J o rd a n
R. E . M A C G R EG O R
P r e s id e n t

C e le b ra te s

S e c re ta ry ...................... P. P . F ellow s
S t. P a u l

T w e n ty -fifth B ir th d a y

T h e d o o rs o f th e S ta t e B a n k o f L a f a y ­
e tte , M in n e s o ta , w e re o p e n e d o n S e p te m ­
b e r 1 , 1 9 0 1 , w i t h $ 1 0 ,8 8 2 .7 5 o n d e p o s i t s .
T o d a y th e d e p o s its a r e m o re th a n a q u a r ­
t e r o f a m i l l i o n d o l l a r s — $ 2 5 4 ,2 8 3 .1 9 . T h e
g r o w th o f th e s e fig u re s p la in ly s p e a k o f
t h e p r o s p e r i t y o f t h e i n s t i t u t i o n , a n d is
n o t a l o n e o f p r i d e t o t h e o ffic ia ls a n d d i ­
r e c t o r s , b u t s h o u l d b e o f p r i d e to e v e r y
p e rs o n in th is c o m m u n ity .
D u r i n g t h e tw e n t y - f i v e y e a r s , i t s s t a ­
b ility h a s b e e n g iv e n th e a c id te s t o f
fin a n c ia l d e p re s s io n s , a n d e a c h tim e it
h a s c a r r ie d o n s tr o n g e r a n d m o re s ta b le
th a n ev e r.
T h e p r e s e n t d ir e c to r s a r e : A u g . S am u e l s o n , O . A . O lin , J o s . S c h a e f f le r , C h a s .
S a m u e l s o n , C. H . N e ls o n , F . (). S w e n s o n ,
0 . W . S tro m , E . E . L . J o h n s o n a n d H .
N . S o m s o n . T h e o ff ic e rs a r e : 0 . A . O lin ,
p r e s i d e n t ; A u g . S a m u e l s o n , v ic e p r e s i ­
d e n t; V . F . Q u is t, c a s h ie r, a n d 0 . W .
S tro m , a s s is ta n t c a s h ie r.
F e d e ra l L an d B an k L oans
O f a t o t a l o f 4 0 1 ,9 1 2 lo a n s m a d e to
f a r m e r s o f th e U n ite d S ta te s b y b a n k s
o f t h e f e d e r a l l a n d b a n k s y s t e m , 3 8 ,7 6 7
h a v e b e e n m a d e to f a r m e r s o f M in n e ­
s o ta , N o r th D a k o ta , M ic h ig a n a n d W is ­
c o n s i n b y t h e F e d e r a l L a n d B a n k o f S t.
P a u l , IT. K . J e n n i n g s , p r e s i d e n t o f t h a t
in s titu tio n , s a id re c e n tly .
T h e l o a n s o f t h e S t. P a u l B a n k t o ­
t a l e d $ 1 4 5 ,6 5 0 ,5 0 0 , w h i l e t h e t o t a l a m o u n t
o f t h e lo a n s b y t h e f e d e r a l l a n d b a n k
s y s t e m w a s $ 1 ,2 4 7 ,9 6 9 ,0 3 9 .
N o r t h D a k o t a l e a d s in t h e n u m b e r o f
lo a n s w i t h 1 0 ,9 2 8 , M i n n e s o t a is s e c o n d
w i t h 1 0 ,2 3 4 , a n d l e a d s in t h e a m o u n t
lo a n e d w i t h $ 4 5 ,6 7 2 ,6 0 0 .
D u r in g th e se v e n m o n th s e n d in g J u l y
3 1 s t 2 ,6 9 0 f a r m e r s h a v e b e e n s e r v e d w i t h
a p p r o x i m a t e l y $ 1 3 ,2 1 4 ,6 0 0 t h r o u g h t h e i r
lo c a l lo a n a s s o c ia tio n s .
B a n k s M erg e
T h e B a n k o f F is h e r , M in n e s o ta , w a s
ta k e n o v e r b y th e R e d R iv e r V a lle y S ta te
B a n k a t t h a t p la c e , A . J . V e ig e l, c o m ­
m is s io n e r o f b a n k s , a n n o u n c e d re c e n tly .
T h e in s titu tio n s w e re c o n s o lid a te d f o l­
lo w i n g a m e e t i n g o f d i r e c t o r s o f t h e tw o
b an k s.


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Federal Reserve Bank of St. Louis

77

BANKER

F. P . F E L L O W S
S e c re ta ry

O rg a n iz e M o r ris P la n
O r g a n i z a t i o n o f a n e w “ b a n k ” i n S t.
P a u l u n d e r t h e t u t e l a g e o f o ff ic ia ls o f t h e
S t . P a u l A s s o c i a t i o n is u n d e r w a y . T h e
“ b a n k ” is t o b e k n o w n a s t h e S t . P a u l
M o r ris P la n B a n k , f o r th e h a n d lin g o f
s m a ll lo a n s t o s a l a r i e d p e o p le , a n d is i n ­
te n d e d to re lie v e o th e r b a n k s o f th is ty p e
o f lo a n a n d a t th e s a m e tim e c o m p e te
w ith th e “ lo a n s h a r k s ,” o r g a n iz e r s s a id .
T h e n e w o r g a n i z a t i o n w ill h a v e a c a p i ­
t a l i z a t i o n o f $ 1 5 0 ,0 0 0 , $ 4 0 ,0 0 0 o f w h ic h
a lr e a d y h a s b e e n r a is e d . O p e n in g o f th e
b a n k w ill t a k e p l a c e a s s o o n a s t h e c a p i ­
t a l is r a i s e d a n d n e c e s s a r y f o r m a l i t i e s
w ith t h e S t a t e B a n k i n g D e p a r t m e n t a r e
c o m p l e te d .
C re a te N e w D e p a rtm e n t
A c h a n g e in th e B a n k o f W illm a r,
M i n n e s o t a , s o m e w e e k s a g o , w h ic h le a v e s
t h e p e r s o n n e l t h e s a m e , b u t w h ic h c r e a t e d
a n e w d e p a r tm e n t in th e b a n k , w a s th e
e l e c t i o n o f C . F . O ls o n , f o r m e r a s s i s t a n t
c a s h i e r , t o t h e office o f c a s h i e r , a n d t h e
c r e a t i o n o f a n e w d e p a r t m e n t to b e fille d
b y N e ls S . S w e n s o n , w h o h a s b e e n c a s h i e r
o f th e b a n k f o r m a n y y e a rs.
M r . S w e n s o n ’s n e w p o s i t i o n w i t h t h e
b a n k is t h a t o f m a n a g e r o f t h e R e a l E s ­
ta t e F a r m L o a n D e p a rtm e n t, h e n o w d e ­
v o t i n g p r a c t i c a l l y a l l o f h is t i m e to t h i s
b r a n c h o f t h e b a n k ’s w o r k .
O b se rv e B ir th d a y
A b ir th d a y c a k e w e ig h in g 500 p o u n d s
w a s c u t w h e n th e th ir ty - s e v e n th a n n iv e r ­
s a r y o f th e A u s tin N a tio n a l B a n k , A u s ­
t i n , M i n n e s o t a , w a s c e l e b r a t e d O c to b e r
1 s t . T w o c o in s , a $5 a n d $ 1 0 g o ld p ie c e ,
w e re b a k e d in th e c a k e , to b e k e p t b y
t h e p e r s o n l u c k y e n o u g h t o g e t i t i n h is
s l ic e . T h e c a k e c o n s i s t e d o f t h e f o l l o w ­
i n g i n g r e d i e n t s : 5 7 p o u n d s o f f l o u r , 45
p o u n d s o f s u g a r , 3 5 p o u n d s o f b u t t e r , 31
p o u n d s o f n u ts , 560 f r e s h eg g s a n d 250
p o u n d s o f fru it.
I t w a s t h r e e f e e t in
.
d ia m e te r a t th e b a se .
C o u n ty B a n k e r s E le c t
A t a m e e tin g h e ld in th e c o u n c il c h a m ­
b e r a t th e M u n ic ip a l b u ild in g a t N ew
U lm , M i n n e s o t a , t h e B r o w n C o u n t y B a n k ­
e r s A s s o c i a t i o n e l e c t e d o ffic e rs f o r t h e
e n s u i n g y e a r , a s f o l lo w s : H . E . F a y ,

N a m e d A s s i s ta n t C a s h ie r
A n n o u n c e m e n t w a s m a d e re c e n tly o f
th e a p p o in tm e n t o f J o h n G. S c h ü tz ,
f o r m e r s t a te b a n k e x a m in e r w ith th e
b a n k in g d iv is io n o f th e D e p a r tm e n t o f
C o m m e rc e , to th e p o s itio n o f a s s is t a n t
c a s h ie r a t th e W in o n a S a v in g s B a n k , W i­
n o n a , M i n n e s o t a . M r . S c h ü t z w ill fill t h e
v a c a n c y c a u se d b y th e re s ig n a tio n o f P .
C. P e te rs o n .
M r. S c h ü tz w h o h a s b e e n a b a n k e x ­
a m in e r f o r th e p a s t sev en y e a rs , h a s m a d e
h is h e a d q u a r t e r s i n W i n o n a f o r t h e p a s t
th r e e .
D u r in g h is e x p e rie n c e w ith th e
b a n k i n g d iv i s i o n , h e w o r k e d i n b a n k s in
c i t i e s a n d s m a l l to w n s . P r i o r t o b e i n g
a n e x a m in e r, h e w a s c o n n e c te d w ith a
b a n k a t M a rs h a ll.
U n d e rg o e s O p e ra tio n
K . 1. S h a g e r , p r e s i d e n t o f t h e F i r s t N a a tio n a l B a n k o f P a r k e r , S o u th D a k o ta ,
w as o p e ra te d u p o n f o r g o itre a t R o c h e s­
t e r r e c e n t l y a n d is r e c o v e r i n g n ic e l y . M r .
S h a g e r h a s b e e n in v e r y p o o r h e a l t h f o r
n e a rly a y e a r a n d h a s b e e n sp e n d in g th e
l a s t tw o m o n t h s i n C o lo r a d o . M r s . S h a g e r
a n d s o n K a r l a n d w i f e a r e w i t h h im i n
R o c h e s te r.
D e b its S h o w D e c re a s e
D e b i t s to i n d i v i d u a l a c c o u n t s o f b a n k s
in s e v e n t e e n c l e a r i n g c i t i e s o f t h e n i n t h
re s e rv e d is tr ic t, b a ro m e te r o f n o rth w e s t
b u s i n e s s v o lu m e , t o t a l e d
$ 1 6 7 ,8 9 6 ,0 0 0
d u r in g th e w e e k e n d in g S e p te m b e r 8 th , a
d e c li n e o f $ 2 ,1 0 3 ,0 0 0 f r o m t h e $ 1 6 9 ,9 9 9 ,0 0 0 o f t h e p r e c e d i n g p e r i o d a n d o f $ 2 0 ,0 9 5 ,0 0 0 f r o m t h e $ 1 8 7 ,9 9 1 ,0 0 0 r e p o r t e d
f o r th e c o rr e s p o n d in g w e e k o f 1925, r e ­
p o rts th e F e d e r a l R e se rv e B a n k o f M in ­
n e a p o li s .
C o ll e c ti o n E x p e n s e H i g h
S in c e t h e D u l u t h B a n k s S c h o o l T h r i f t
A s s o c i a t i o n o f D u l u t h , M i n n e s o t a , is o f
th e o p in io n t h a t th e c o s t o f h a n d lin g d e ­
p o s i t s o f s c h o o l c h i l d r e n ' is “ e x c e s s iv e l y
h i g h ,” t h e f i n a n c e c o m m i t t e e o f t h e h o a r d
o f e d u c a t i o n w ill m a k e a n i n v e s t i g a t i o n
a s to t h e a d v i s a b i l i t y o f a n a p p r o p r i a t i o n
o f $ 6 ,0 0 0 t o d e f r a y o n e - h a l f t h e e x p e n s e s
o f c o lle c tin g th e d e p o s its .
T h e c o m m i t t t e e o n s c h o o ls r e c e n t l y
re c o m m e n d e d to th e h o a r d m e m b e rs t h a t
no a p p r o p r ia tio n b e m a d e b u t th e re c ­
o m m e n d a tio n w a s n o t a c c e p te d .
The
m a t te r w a s r e f e r r e d to th e fin a n c e c o m ­
m itte e f o r in v e s tig a tio n .
A re c o m m e n d a tio n b y th e c o m m itte e on
s c h o o ls w a s m a d e f o l l o w i n g a c o m m u n i­
c a tio n l a s t J u n e fr o m L e w is C a s tle , se c -

78

THE

r e t a r y o f th e a s s o c ia tio n , w h o s ta te d a t
t h a t t i m e t h a t “ I t is f e l t b y t h e b a n k s
t h a t t h e e d u c a t i o n a l p r o g r a m o f t h r i f t is
b e n e f i c ia l t o t h e s t u d e n t s , e x c e s s iv e l y
c o s tly to b a n k s , a n d a t th e p r e s e n t tim e
h a s b eco m e a v e ry im p o r ta n t p a r t o f th e
sc h o o l c u r r ic u lu m ; a n d i f th e p ro g r a m
h a s a n y m e r it a t a ll, it m u s t b e w o rth
th e e x p e n d itu re b y sc h o o l a u th o r itie s o f
2 5 c e n t s p e r y e a r p e r p u p i l , w h ic h a m o u n t
w o u ld b e e q u i v a l e n t to a b o u t $ 6 ,0 0 0 , o r
o n e - h a l f t h e e x p e n s e o f h a n d l i n g o n ly
th e a d m in is tr a tiv e c o s t o f th e p r o g r a m .”
T h e e n t i r e c o s t is n o w a s s u m e d b y t h e
b a n k s a lo n e .
I n th e r e p o r t m a d e b y th e s c h o o ls c o m ­
m itte e i t w a s s t a te d “ t h a t sin c e th e p r e s ­
e n t s y s te m o f h a n d lin g th e sc h o o l s a v ­
in g s a c c o u n t s w a s p r o p o s e d b y t h e o ffi­
c i a l s o f t h e b a n k s , N o v e m b e r 7, 1 9 1 9 ,
t h e o ff ic ia ls o f t h e b a n k s s h o u l d m a k e
s u c h c h a n g e s a s in t h e i r j u d g m e n t s e e m
n e c e s s a r y in h a n d l i n g t h e c o ll e c ti o n s

NORTHWESTERN

BA N K E R

October, 1926

s h o u l d t h e b a n k s s e e fit t o c o n t i n u e t h i s
w o r k .”

f i e l d ; L . H . B r i g g s , H o u s t o n ; R . J . L e w is ,
M o o s e L a k e ; H . L . M a r s h , C r o o k s to n .

B iw e e k ly c o l l e c t i o n s a n d m i n i m u m d e ­
p o s its o f 10 c e n ts a r e p ro p o s a ls o f th e
a s s o c i a t i o n t h i s y e a r i f t h e p r o g r a m is
c a r r i e d o u t. D u r i n g t h e l a s t y e a r c o ll e c ­
t i o n s i n t h e s c h o o ls a m o u n t e d t o $ 1 5 2 ,5 9 0 .1 7 , t h e l a r g e s t i n t h e h i s t o r y o f t h e
a s s o c ia tio n , b u t a d e c re a s e w a s n o te d
d u r in g th e m o n th s th e m in im u m d e p o s it
w a s r a i s e d t o 5 c e n t s . T h is w a s i n A p r i l ,
a n d i t w a s s t a t e d t h a t t h e d e p o s i t s w o u ld
s h o w a l a r g e d e c r e a s e w e r e t h e m i n im u m
d e p o s i t t o b e 10 c e n t s t h i s y e a r .

C o u n ty O rg a n iza tio n : W m . D u n c a n J r . ,
C h a ir m a n ,
M ilro y ;
A.
V.
G a rd n e r,
W i n o n a ; C. W . W e i s , L e S u e u r ; P . O.
S k o g lu n d , S t. P a u l ; G . E . H a r r i s , W a ­
d e n a ; L . A . L ie n , G r a c e v il le ; L . O. K i r b y ,
H ib b in g ; F . P . P o w e rs, Q u am b a.

A p p o i n t N e w C o m m it te e s
T h e f o l lo w in g a r e t h e n e w m e m b e r s a p ­
p o i n t e d o n t h e s e v e r a l c o m m itte e s o f th e
M i n n e s o ta B a n k e r s A s s o c i a tio n t o s e r v e
d u r i n g 1 9 2 6 -1 9 2 7 :
A g ric u ltu ra l C o m m ittee: E m i l A . B o ie ,
C h a irm a n , M a n k a to ; J . G. B ra u c h , L a k e -

B a n k in g P ractice a n d E th ic s : C . A .
C h a p m a n , C h a irm a n , R o c h e s te r ; W . A .
S tr e a to r , M a n k a t o ; G e o rg e S u se n s , A le x ­
a n d r i a ; J . S . U lla n d , F e r g u s F a l l s , H .
V a n D e r W e y e r , S t. P a u l .
In su ra n ce C o m m ittee: R . W . L in d e k e ,
C h a i r m a n ; S t. P a u l ; F r a n k S h a n d o r f ,
N o r t h f i e l d ; C . B . B r o m b a c h , M i n n e a p o li s .
M em b ersh ip C o m m itte e : J . W . B a r t o n ,
C h a irm a n ; M in n e a p o lis ; R . E . S h e p h e rd ,
S p r in g V a lle y ; T . A . P e rk in s , W in d o m ;
J o h n T h ie in , S h a k o p e e ; A . O . M ille r ,
B a c k u s ; H . M . A lg e r , T r a c y ; I ) . W . S te b b in s , V i r g i n i a ; H . A . K r o s t u e , D e t r o i t ;
A . E . E d d y , B ro o k P a r k ; H . B. H u m a s o n , S t. P a u l .
E d u ca tio n a l C o m m ittee: L . O . A n d e r ­
so n , C h a irm a n , D u lu th ; D . K . P a tte r s o n ,
S t. P a u l ; E . H . J o h n s o n , W in o n a .
B a n k C osts and C o u n ty C redit B u rea u s:
A . B . C h e a d le , C h a i r m a n , J a c k s o n ; E . A .
S to l l, N e w U lm ; J . D . C o s te llo , K e llo g ’g ;
C . J . L e u s m a n , R o c h e s t e r ; W . L . N e ls o n ,
E a s t G ra n d F o l k s ; A . L . E g g e , H ib b in g .

C om m ittee O pposed to B ranch B a n k ­
in g : J . J . P o n s f o r d , C h a i r m a n , W a t e r -

Every modern facility
for the transaction of
out-of-town business
DIRECTORS
A. W ATSON ARMOUR
V ice President, Armour & Company

K E R SE Y COATES REED
Secretary, M arshall F ield & Co.

SEW ELL L. A V ER Y
P resident, U . S. Gypsum Company

EDW ARD L. RYERSON, JR.
V ice P res., Joseph T. Ryerson & Sou

A LBERT B. DICK, JR.
V ice President, A. B. D ick Company
DE FOREST H U L B U R D
President, E lgin N ation al W atch Co.
JOHN T. P IR IE
Carson, P irie, Scott & Company

M ARTIN A. RYERSON
W ALTER BYRON SM ITH

JOHN STUART
P resident, The Quaker Oats Company
EZRA J. W ARNER
Pres., Sprague, W arner & Company
SOLOMON A. SM ITH
P resident, The N orthern T rust Company

TH E N O R TH ER N
TRUST COMPANY
C a p ita l, S u r p lu s a n d U ndivided
Profits, over $7,500,000

CHICAGO


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Federal Reserve Bank of St. Louis

t o w n ; S . A . R a s k , B lo o m in g P r a i r i e ; E d ­
w in B r ic k s o n , A d r i a n ; O . J . S c h u m a k e r ,
S o . S t. P a u l ; A . J . N e w g r e n , S t. P a u l ;
J . K . M a r t i n , L i t t l e F a l l s ; S . F . N e ls o n ,
M i n n e a p o l i s ; T h e o . A u n e , G le n w o o d ; A l ­
f r e d H o e l, G i l b e r t ; J . H . S h e a , P e r h a m ;
R . H . F a irfie ld , W a y z a ta .

L eg isla tive C o m m itte e : J . J . M a lo n e y ,
C h a irm a n , H e ro n L a k e , 2 n d D i s t .; R . D .
S p r a g u e , C a le d o n i a , 1 s t D i s t . ; M . H .
M ic k e ls o n , M a n k a t o , 2 n d D i s t . ; R . W .
P u tn a m , R e d W in g , 3 rd D is t,; T . J . M c­
G r a t h , S t, P a u l , 4 t h D i s t . ; R , B . R a t h b u n ,
M i n n e a p o l i s ; 5 th D i s t . ; G e o . H a r r i s ,
W a d e n a , 6 th D i s t . ; A . W . W e lls , H e r m a n ,
7 t h D i s t , ; J . A . G ille s p ie , C a r l t o n , 8 th
D i s t .; N . S . H e g n e s , A rg y le , 9 th D i s t .;
G . J . S to l b e r g , H a r r i s , 1 0 th D is t,

B e fo re p h ilo s o p h y c a n te a c h b y e x ­
p e r i e n c e , t h e p h i l o s o p h y h a s to b e in
re a d in e s s ,
th e
e x p e rie n c e
m ust
be
g a th e re d
and
in te llig ib ly
r e c o r d e d .—
C a r ly l e .

October, 1926

T H E NO RT H W E 8 T E R N B A N K E E

Service the Keynote of
Railroad Success
I n s p ite o f th e c o m p e titio n fr o m m o to r
b u ses, r a ilr o a d s o f th e U n ite d S ta te s a re
s u c c e e d in g b e c a u s e th e y a r e a b le to r e n ­
d e r s e rv ic e to t h e i r p a tr o n s w ith o u t th e
h in d r a n c e o f o b n o x io u s g o v e r n m e n ta l r e ­
s t r a i n t u n d e r w h ic h t h e y o p e r a t e d d u r ­
in g th e w a r a n d p o s tw a r p e rio d .

79

P i e t y , l i k e w is d o m , c o n s i s t s i n t h e
d is c o v e r y o f t h e r u l e s u n d e r w h ic h w e
a r e a c t u a l l y p l a c e d , a n d in f a i t h f u l l y
o b e y in g th e m .— F r o u d e .

o n D e c e m b e r 31, 1 9 2 4 , a g a i n s t 2 5 4 ,2 5 1
m i le s o n J a n u a r y 3 0 , 1 9 1 6 a f a l l i n g o ff o f
4 ,2 4 8 m ile s .
“ T h e r a i lr o a d s h a v e b e e n q u ic k to a p ­
p r e c ia te th e im p o rta n c e o f th e m o to r b u s,
a n d a ll o v e r th e c o u n tr y th e y a re a d o p t­
in g th e m o to r b u s lin e s a s fe e d e r s fo r
th e i r lo n g h a u l b u s in e s s . H e re w e h a v e
a n e x c e l l e n t e x a m p l e o f s e r v i c e to t h e
t r a v e l i n g p u b l i c .”

P o e t r y is s i m p l y t h e m o s t b e a u t i f u l ,
i m p r e s s i v e , a n d w i d e ly e f f e c ti v e m o d e o f
s a y in g th in g s , a n d h e n c e its im p o rta n c e .

—A r n o ld .

T h is w a s t h e s t a t e m e n t m a d e t o t h e
W e s t e r n R a i l w a y C lu b a t a r e c e n t m e e t ­
i n g a t t h e H o t e l S h e r m a n i n C h ic a g o b y
W i l l i a m G . E d e n s , v ic e p r e s i d e n t o f t h e
C e n tr a l T r u s t C o m p a n y o f Illin o is .
“ R a ilr o a d c o m p a n ie s o f th e U n ite d
S t a t e s g e n e r a l l y fin d t h e m s e l v e s o n t h e
u p w a rd g r a d e ,” s a id M r. E d e n s . “ T h e y
a r e m e e t i n g c o n d i t i o n s w h ic h t h e y n e v e r
h a d to m e e t b e fo re .
O n e o f t h e i r bigp ro b le m s h a s b e e n th e c o m p e titio n fr o m
a u t o m o b i l e t r u c k s a n d m o t o r b u s e s , w h ic h
c a r r y f r e ig h t a n d p a s s e n g e rs o n b o th
s h o r t a n d lo n g h a u ls , o v e r ro a d w a y s
w h ic h a r e p r o v i d e d b y t h e m o n e y o f t a x ­

T H E N A T IO N A L P A R K BA NK
of NEW YORK
Established 1856
214 B

U ptow n Offices
P a r k A v e n u e and 4 6th S t r e e t

p a y e rs.
“ Y e t, b e c a u s e th e r a i lr o a d s h a v e g r a d ­
u a lly re c o v e re d fr o m th e s tu ltific a tio n
w h ic h h i n d e r e d t h e m a s a r e s u l t o f to o
m u c h g o v e r n m e n t a l c o n t r o l o v e r to o lo n g
a p e rio d , g ro w in g o u t o f th e w a r, th e y a re
r e n d e r in g b e tt e r s e rv ic e th a n e v e r b e ­
f o r e a n d t h e i r s t o c k h o l d e r s , o ff ic ia ls a n d
e m p lo y e s a r e b e g in n in g to see b e t t e r
ti m e s .
T h i s c o n d i t i o n , 1 b e li e v e , is d u e
to t h e f a c t t h a t t h e i r o p e r a t i o n a n d m a n ­
a g e m e n t h a s b e e n r e s to r e d to th e in g e n u ­
ity a n d in itia tiv e o f th e ir p e rs o n n e l fro m
th e g r o u n d u p . O u ts id e m a n a g e m e n t su c h
a s t h a t u n d e r g o v e rn m e n ta l s u p e rv is io n ,
w h ic h b e g i n s a t t h e t o p a n d g o e s d o w n ,
c a n n o t c o m p a re w ith in s id e m a n a g e m e n t,
w h ic h g o e s b o th u p a n d d o w n .
“ T h e r u le o f o r d e r n o w in th e r a i lr o a d
i n d u s t r y is s e r v i c e t o c u s t o m e r s .
The
r o a d s w h ic h h a v e th e m o s t h ig h ly d e v e l­
o p e d s e r v i c e a r e t h o s e w h ic h a r e s u c c e e d ­
i n g t h e f a s t e s t . I b e li e v e t h i s w ill n o t b e
d is p u te d b y a n y r a ilr o a d o f s ta n d in g .
“ I n t h e o ld d a y s o u r r a i l r o a d s w e r e p i c ­
tu r e d a s ty r a n n ic a l o rg a n iz a tio n s , w ith a
r u le o r r u i n p o lic y to w a r d c o m m u n itie s
a n d b u sin e ss o rg a n iz a tio n s .
H a p p ily ,
th is id e a h a s d is a p p e a re d a n d th e b u s i­
n e ss m a n n o w re g a r d s th e r a ilr o a d a s a n
i n s t i t u t i o n w h ic h w is h e s to c o o p e r a t e
w i t h h im i n t h e e x t e n s i o n o f h i s i n d u s t r y ,
i n o r d e r t h a t i t m i g h t h a v e i t s p ro p e r s h a r e o f h is p r o s p e r ity .
“ P e r s o n a l l y , I k n o w o f m a n y fin e t h i n g s
t h a t h a v e b e e n a c c o m p lis h e d b y th e r e ­
g io n a l c o n fe r e n c e s b e tw e e n r a i lr o a d r e p ­
r e s e n ta tiv e s a n d re p r e s e n ta tiv e s o f b u s i­
n e ss o rg a n iz a tio n s o v e r th e h a n d lin g o f
tr a f f i c a n d t h e m a s s i n g o f c a r s in r e g i o n s
w h e re th e r e w as d e m a n d .
“ F e w p e o p l e r e a l i z e t h a t w e h a v e le s s
m ile a g e o f s te a m r a ilr o a d s to d a y th a n w e
h a d te n y e a r s ag o . T h e l a t e s t fig u re s I
h a v e b e e n a b le to fin d , s h o w t h a t t h e r e
w e r e 2 5 0 ,0 0 3 m i le s o f r a i l r o a d t r a c k a g e


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Federal Reserve Bank of St. Louis

roadw ay

S e v e n t h A v e n u e and 32nd S t r e e t

Banking
In All Its Branches

DIRECTORS
C h arles S crib n er
R ich a rd D ela field

Comm ercial and T ra v e le rs ’ C red­
it issu ed ; C orrespondents in all
prin cip al Cities in the W orld.
F o reig n Exchange bought and
sold.

C o rp o rate

and

P erso n al

T r u s ts ; S afekeeping of S ecu ri­

F r a n c is R. A p p le to n
C orn eliu s V a n d e r b ilt
G ilb ert G. T h orn e
T h om as F . V ic to r
J o h n G. M ilb u rn
W illia m V in c e n t A sto r
J o se p h D . O liv er
L e w is C ass L e d y a r d , Jr.
D a v id M. G oodrich

ties ; Collection of Income, In v e st­

E u g e n iu s H . O u terb rid g e

m ent

K e n n e th P . B u d d

Service

fo r

C ustom ers.

J o h n H . F u lto n

Safes in our Safe-D eposit V aults

F r a n k L . P o lk

at m oderate rental.

B e n ja m in J o y

Capital, Surplus and Undivided Profits, $34,000,000

SERVICE THAT PAYS
The Northwestern Banker

80

THE

NORTHWESTERN

BANKER

REA L SERVICE
To serve our clients to their
entire satisfaction is our constant aim and ambition.
I

Stanley-Henderson Company
Farm Mortgage Bankers
207-214 Higley Bldg,

Cedar Rapids, Iowa

October, 1926

Fred W. A llen, f o r m e r l y c o n n e c t e d
w i t h t h e N o r t h e r n T r u s t C o m p a n y , C h i­
c a g o , h a s r e c e n tly a ffilia te d w ith th e D is ­
p a tc h e rs I n v e s tm e n t C o m p a n y as e x e c u ­
t i v e v ic e p r e s i d e n t .
Joseph F. N oth esis, a s s i s t a n t c a s h i e r
o f t h e S t a t e B a n k o f C h ic a g o h a s r e c e n t l y
r e tu r n e d f r o m a th r e e w e e k s v a c a tio n
s p e n t i n M i n n e s o t a , h is h o m e s t a t e .
G rantland Rice, w e ll k n o w n g o l f a n d
s p o r ts w r it e r , h a s b e e n e le c te d to th e
b o a rd o f d ir e c to r s o f th e H a r r im a n N a ­
tio n a l B a n k , N ew Y o rk .
The In vestm en t Bankers A ssociation
w ill h o ld its 1 926 c o n v e n tio n th is y e a r
a t Q u e b e c , O c to b e r l l t h - 1 5 t h . T h e r e w ill
b e t h r e e s p e c i a l t r a i n s f r o m C h ic a g o .

S ta n ley K lonow ski, p r e s i d e n t o f t h e
B a n k o f C l e v e l a n d , O h io , h a s r e t u r n e d
f r o m a th r e e - m o n t h s t r i p to E u r o p e .

IN M I A M I
The South Florida Mortgage
Company of Miami, is at your service
to assist you or your customers in
every possible way.
This Company renders the follow­
ing services:
1. Makes mortgage loans on resi­
dential property.
2. Makes appraisements for
loaning or investment on
property in southeast Florida.
3. Buys and sells real estate on
a brokerage basis and handles
rentals, property management
and insurance.

We are at your service in this
rapidly growing city which has a
building program placing it in
seventh place among the cities of the
United States.
Write us today

South Florida Mortgage Company
Capital $100,000.00
J. V. Carpenter, President
O. M. Fow ler, Vice President
S. Grover Morrow, Vice President
Harry A. B rattin, Secretary

150 S. East First St.


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

Miami, Florida

E stab lish Service Charge
B e g in n in g O c to b e r 1 s t, th e b a n k s o f
N e w E n g l a n d , N o r t h D a k o t a , w ill f o l lo w
t h e l e a d o f m o s t b a n k s in t h e s t a t e i n c o l­
le c tin g a s e rv ic e c h a rg e o f 50 c e n ts a
m o n t h o n a l l a c c o u n t s f a l l i n g b e lo w $ 5 0
d u rin g a n y m o n th s. D e c re a se d re v e n u e s
a n d i n c r e a s e d e x p e n s e s a r e r e a s o n s g iv e n
f o r th e ch a n g e .
T h e l e v y i n g o f t h e s m a ll f e e , t h e b a n k ­
e r s e x p e c t , w ill p a y a p a r t o f t h e c o s t o f
th e b a n k s in d o in g b o o k k e e p in g , f u r n i s h ­
i n g c h e e k s , m o n t h l y a c c o u n t s , e tc ., f o r
p a t r o n s . W h e n a d e p o s i t o r is u n a b l e to
k e e p h is b a la n c e a b o v e th e r e q u ir e d
a m o u n t o f $ 5 0 , h e o r s h e is u r g e d t o d e ­
p o s it in th e sa v in g s a c c o u n ts.
A n o th e r a r g u m e n t in f a v o r o f e v e r ­
l a s t i n g p e a c e is t h a t i t w o u ld g iv e u s ti m e
to fin is h p a y i n g f o r t h e w a r .— F r e s n o R e ­

publican.
T h e g o d s a re ju s t, a n d o f o u r p le a s a n t
v ic e s m a k e i n s t r u m e n t s t o p l a g u e u s .—
S h a k esp eare.

M id l a n d
N a t i o n a l Ba n k
and

T rust C o m pa n y
t

Resources $22,000,000.00

M IN NEA PO LIS

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192(5

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a r e p l a c e d a t $ 8 8 ,6 8 6 ,3 9 8 .1 3 , a s c o m p a r e d
w i t h $ 9 2 ,2 9 0 ,0 3 7 .7 7 o n A p r i l 1 s t a n d $ 9 8 ,4 4 8 ,6 7 5 .9 8 o n J u n e 3 0 , 1 9 2 5 .

North Dakota
B a n k News

N O RTH D A K O T A N E W S
T h e M a z a S t a t e B a n k h a s b e e n g iv e n
p e r m i s s i o n b y t h e b a n k i n g b o a r d to
( h a n g e its c o rp o r a te n a m e a n d h e a d q u a r­
t e r s to t h e “ P e r t h S t a t e B a n k . ”

Officers North Dakota Bankers
Association
P r e s id e n t.................................. H . T. G raves
V ice P r e s id e n t a n d C h airm a n E x e c u ­
tiv e C o u n cil.................G eorge H . L e ic k
H e b ro n
T r e a s u re r.................
G oodrich
H . T. G R A V E S
P r e s id e n t

J . E. D avis

S e c re ta ry _____ ____ ...W , C. M acfadden
F a rg o

A ppoin ted D irector
J o h n C . S m i t h , M a n d a n , N o r t h D a k o ta ,
f a r m e r , h a s b e e n a p p o in te d a m e m b e r o f
th e b o a r d o f d ir e c to r s o f th e S t. P a u l
F e d e r a l L a n d B a n k . M r . S m i t h w i l l fill
th e v a c a n c y c a u s e d b y th e r e s ig n a tio n o f
P a u l A . P r e u s a s tr e a s u r e r in J u ly . T h e
a p p o i n t m e n t o f M r . S m i t h w ill g iv e N o r t h
D a k o t a tw o r e p r e s e n t a t i v e s o n t h e b o a r d .

W. C. M A C FA D D EN
S e c re ta ry

h a n d , t h e y g iv e d u e c r e d i t t o d e p o s i t o r s ,
a n d th e n p la c e th e ir m o n e y s a t th e p r o p e r
b a n k s a t t h e c lo s e o f t h e d a y .
A ll b o o k k e e p i n g , a l l h a n d l i n g o f f u n d s ,
a l l b u s i n e s s c o n t a c t w i t h p u p i l s , is d o n e
b y a c tu a l re p r e s e n ta tiv e s o f th e b a n k s.
T h e r e is a f i a v o r o f “ r e a l b u s i n e s s ” a b o u t
I he p la n t h a t c a n n o t o th e r w is e b e s e c u re d .

A N a tio n a l D e p o s ito ry
B e c o m e s C a s h ie r
C. T . T o l l e f s o n , f o r m e r l y w i t h t h e S e ­
c u r ity S ta te B a n k o f D u n s e ith , N o rth D a ­
k o t a , h a s b e e n e l e c t e d to t h e c a s h i e r s h i p
o f th e F a r m e r s a n d M e rc h a n ts B a n k o f
R o ll a . H i s w i f e w i l l j o i n h i m i n R o ll a
a s s o o n a s t h e y c a n f in d a r e s i d e n c e .
M r . T o l l e f s o n s u c c e e d s C. I . F . W a g n e r
a s c a s h ie r o f th e F a r m e r s a n d M e r c h a n ts
B a n k , M r. W a g n e r h a v in g re s ig n e d fr o m
t h e c a s h i e r s h i p a n d a c c e p t e d t h e v ic e
p re s id e n c y .
S c h o o l S a v in g s in M in o t
T h e c o o p e ra tio n o f th e C le a rin g H o u se
A s s o c ia tio n o f M in o t, N o rth D a k o ta ,
m a d e p o s s ib le p e r h a p s o n e o f th e b e s t
s y s t e m s o f s c h o o l b a n k i n g y e t d e v is e d .
T h e sa le o f s ta m p s r e p r e s e n tin g v a r i­
o u s su m s o f d e p o s it w ith th e s ta m p s b y
p u p ils p la c e d in th e ir a c c o u n t b o o k s r e p ­
re s e n ts o n e a u to m a tic w a y o f c a rin g fo r
th e b o o k k e e p in g .
S o m e tim e s a u to m a tic
v e n d o rs a r e p ro v id e d in sc h o o ls f o r th e
s a le o f s u c h s t a m p s ; a n d s o m e tim e s th e
s ta m p s a r e s o ld th r o u g h th e sc h o o lro o m s .
T h e “ R i c h m o n d p l a n ” d e v is e d in R i c h ­
m o n d , V irg in ia , p ro v id e s f o r a r a t h e r
e la b o r a te b o o k k e e p in g s y s te m , th e e x ­
p e n se o f th e b o o k b e in g c a re d f o r in m o s t
c o m m u n i t i e s b y a lo c a l b a n k . I n t h i s s y s ­
te m , t h e t e a c h e r s r e c e i v e t h e m o n e y s a n d
k e e p t h e b o o k s , a n d t h e n m a k e a s i n g le
d e p o s it in b a n k in th e n a m e o f th e sch o o l
a c c o u n t . T h e p l a n w h i l e e x c e l l e n t is a t
o n c e o p e n to s e v e r a l o b j e c t i o n s .
T h e p l a n d e v i s e d a t M i n o t is v e r y s u c ­
c e s s fu l, b o th in m e th o d a n d in r e s u lts .
H e re , th e b a n k s ta k e th e ir tu r n s s e n d in g
c le rk s to th e sc h o o l b u ild in g — J u n i o r
h ig h s c h o o l— o n c e a w e e k , o n “ b a n k i n g
d a y ,” a n d a t th e “ s c h o o l b a n k ” re c e iv e
a c t u a l d e p o s i t s in t h e s a m e m a n n e r t h e y
w o u ld a t t h e d o w n t o w n b a n k s .
W ith
d e p o s i t s l i p s f o r e v e r y b a n k in to w n a t


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

Öl

B A X K E R

T h e F i r s t N a tio n a l B a n k o f C a rrin g ­
to n , N o r t h D a k o t a , h a s j u s t b e e n d e s i g ­
n a te d a d e p o s ito ry b y th e d ir e c to r o f
p o s ta l s a v in g s f u n d s a t W a s h in g to n a n d
in t h e f u t u r e w ill b e c u s t o d i a n f o r m a n y
th o u s a n d s
of
d o lla rs
o f g o v e rn m e n t
m oney.
T h e b a n k h a s a ls o b e e n d e s i g n a t e d a s
a d e p o s ito ry f o r I n d ia n fu n d s , m o n ey
h e ld in t r u s t f o r t h e a b o r i g i n e s b y t h e f e d ­
e ra l g o v e rn m e n t.
B a n k in g C o n d itio n s G ood
N o r th D a k o ta b a n k s a n d fin a n c ia l in ­
s t it u ti o n s a r e g e n e r a lly in s p le n d id s h a p e ,
G ilb e r t S e m in g s o n , s t a te b a n k e x a m in e r,
s a id r e c e n tly in c o m m e n tin g o n th e la te s t
c o n s o lid a te d r e p o r t o f fin a n c ia l i n s t i t u ­
tio n s .
A l t h o u g h a l l b u t tw o o f t h e i t e m s l i s t e d
in t h e r e s o u r c e a c c o u n t s h o w d e c r e a s e s ,
t h e s a m e t h i n g h o l d s t r u e w i t h i t e m s in
th e lia b ilitie s a c c o u n t, a n d s a v in g s d e ­
p o s its a r e g r e a t e r th a n th e y w e re a t th is
ti m e l a s t y e a r , a l t h o u g h s l i g h t l y b e lo w t h e
f ig u re r e p o r t e d f o r A p r i l .
R e s e r v e s h e l d b y b a n k s t o t a l $ 1 1 ,3 9 1 ,9 8 4 .2 0 o r $ 2 ,3 8 4 ,5 6 3 .4 9 m o r e t h a n t h e r e ­
q u i r e d f i g u r e , $ 9 ,0 0 7 ,4 2 0 .7 1 . T h e t o t a l r e ­
s e r v e s o n J u n e 3 0 , 1 9 2 5 , w a s $ 1 3 ,1 6 4 ,3 2 5 .2 6 a n d o n J u n e 3 0 . 1 9 2 6 . i t w a s $ 1 3 .0 8 7 ,1 0 9 .8 3 .
A s ig n ific a n t t h i n g in c o m m e n tin g on
t h e lo w e r t o t a l s o f p r a c t i c a l l y a ll i t e m s
is t h e r e d u c t i o n i n t h e n u m b e r o f b a n k s
re p o rtin g .
A y e a r ago 494 s ta te b a n k s
a n d f o u r t r u s t c o m p a n ie s m a d e r e p o r ts .
O n A p n ’l 1 s t t h e n u m b e r w a s 4 5 4 b a n k s
a n d f o u r t r u s t c o m p a n ie s, a n d th e la te s t
r e p o r t in c lu d e s fig u re s f r o m o n ly 438
b a n k s a n d f o u r t r u s t c o m p a n ie s. T h e r e ­
d u c tio n h a s b e e n c a u s e d la r g e ly b y th e
c o n s o l i d a t i o n o f tw o o r m o r e b a n k s in
o n e c o m m u n ity .
T o ta l re s o u rc e s o f th e b a n k s r e p o r tin g

T he F a rm e rs S ta te B a n k o f B a k e r h as
c h a n g e d its c o rp o r a te n a m e a n d h e a d ­
q u a r t e r s to t h e “ F a r m e r s S t a t e B a n k o f
L e e d s .”
J . E . S tr o h m a ie r h a s b e e n a p p o in te d
a s s is t a n t c a s h ie r o f th e E lg in S ta te B a n k ,
s u c c e e d in g A . B . R ix m a n .
R o b e r t J . G e y e r h a s b e e n e l e c t e d to
t h e office o f a s s i s t a n t c a s h i e r o f t h e R o c k
L ake S ta te B a n k .
G eo rg e L. K le in h a s b e e n a p p o in te d a s ­
s i s ta n t c a s h ie r o f th e P ie r c e C o u n ty S ta t e
B an k , B a lta .
C h ris tin e M . H a lv o rs o n h a s b e e n a p ­
p o in te d te lle r o f th e F i r s t & S e c u rity
S ta te B a n k o f C ro sb y .
G e o rg e K n u d s o n h a s b e e n e le c te d a s ­
s i s ta n t c a s h ie r o f th e S e c u r ity S ta te B a n k
o f D u n s e i t h , s u c c e e d i n g C l a r e n c e T . T o l­
le f s o n .
J e n s M . H a u g l a n d h a s b e e n e l e c t e d to
t h e o ffice o f c a s h i e r o f t h e E c k e l s o n S t a t e
B a n k , s u c c e e d in g A . O . S ilv e rs o n , w h o
re s ig n e d .
H.
L . B u c k h a s b e e n e le c te d c a s h ie r o f
th e N o rto n v ille S ta te B a n k , s u c c e e d in g
G e o . S te e l e .
L a n d i s S . D a y h a s b e e n a p p o i n t e d to
t h e office o f a s s i s t a n t c a s h i e r o f t h e
S o u th a m S ta te B a n k .
L u th e r C. S k a r i h a s b e e n a p p o in te d
te lle r a n d b o o k k e e p e r o f th e F i r s t S ta te
B a n k o f K e m p to n , s u c c e e d in g T h o s. R .
P o w e ll.
C . T . T o lle fs o n h a s b e e n e le c te d to th e
o ffice o f c a s h i e r o f t h e F a r m e r s & M e r ­
c h a n ts B a n k o f R o lla , s u c c e e d in g C. I . F .
W a g n e r , w h o is n o w v ic e p r e s i d e n t o f t h e
bank.
C li f f o r d L . L i e n h a s b e e n a p p o i n t e d
c a s h ie r o f th e S ta te B a n k o f R o ss, su c ­
c e e d in g O. A . M o e w h o h a s b e e n a p ­
p o i n t e d v ic e p r e s i d e n t a n d d i r e c t o r . M r .
M o e s u c c e e d s G e o . B o r r u d , w h o is n o w
p r e s i d e n t , a s v ic e p r e s i d e n t , a n d s u c c e e d s
C. G . H a m m o n d a s d ir e c to r . M r. H a m rrio n d , t h e f o r m e r p r e s i d e n t , is n o l o n g e r
w ith th e b a n k .

N apoleon Bank Moved
T h e M e r c h a n t s B a n k o f N a p o le o n ,
N o r th D a k o ta , h a s b e e n m o v e d in to n ew
o u a r t e r s l o c a t e d in t h e r e c e n t l y e r e c t e d
M ille r b u ild in g .
P r iz e s a r e b e in g o f ­
f e r e d b y th e b a n k to e n c o u ra g e sa v in g s.

T HE

82

O pens B an k a t L eeds
C a s h ie r A rn e A . G re g o r a n d A s s is ta n t
C a s h ie r K in n e b e r g h a v e o p e n e d th e F a r m ­
e rs S ta te B a n k in L e e d s, N o rth D a k o ta ,
in t h e o ld F a r m e r s a n d M e r c h a n t s B a n k
b u i l d i n g . T h is b a n k w a s r e c e n t l y m o v e d
f r o m B a k e r . T h e s e g e n t l e m e n , a s w e ll a s
th e fin a n c ia l in te r e s ts b e h in d th e n e w
L e e d s b a n k , a r e re c o m m e n d e d to th e p e o ­
p le o f L e e d s a n d v i c i n i t y .
G oes to M in n e a p o lis
W . D . W y a r d , v ic e p r e s i d e n t o f t h e
S h e r id a n C o u n ty S ta t e B a n k o f M cC lu s k y , N o r t h D a k o t a , h a s r e s i g n e d a n d
a c c e p te d a p o s itio n w ith th e N o rth w e s t­
e r n N a tio n a l B a n k o f M in n e a p o lis . W y ­
a r d , w h o l e f t M c C lu s k y r e c e n t l y , w ill

NO R T H W E 8 T E R N

13 A N K E R

a c t a s N o rth D a k o ta re p r e s e n ta tiv e f o r
th e M in n e a p o lis b a n k .

October, 1926

ic e c h a r g e o f 5 0 c e n t s a m o n t h to a ll
c h e c k i n g a c c o u n t s w h ic h d o n o t m a i n t a i n
a n a v e ra g e b a la n c e o f $50 p e r d a y d u r in g
th e m o n th .
I n a d d i t i o n , t h e fo llo w in g *
c h a r g e s w ill b e m a d e o n c h e c k s d r a w n o n
b a n k s o u t s i d e o f S t a r k c o u n t y w h ic h a r e
c a s h e d b y o r d e p o s ite d w ith th e m e m b e r
b a n k s : F i v e c e n t s o n a l l c h e c k s u p to
$ 5 0 ; 10 c e n ts o n a ll c h e c k s u p to $100
a n d 1 0 c e n t s p e r $ 1 0 0 o n a ll c h e c k s o f
m o re th a n t h a t a m o u n t.
T h e a b o v e c h a r g e s , h o w e v e r , w ill n o t
a p p ly to c h e c k s d ra w n o n a n y S ta r k
c o u n ty b a n k n o r b a n k s a t K illd e e r, N ew
E n g la n d , D u n n C e n te r, F r y b u r g , R e g e n t,
M o tt a n d H e b r o n . A c h a r g e o f 10 c e n ts
w ill b e m a d e o n a ll i t e m s t a k e n f o r c o l­
le c t i o n .

R o b b e ry a t F lo r a
T h e S ta te B a n k o f F lo r a , N o rth D a ­
k o t a , s o u t h w e s t o f D e v ils L a k e , w a s
lo o te d r e c e n tly a n d th e ro b b e r s e s c a p e d
w ith $ 1 ,4 0 0 i n m o n e y .
T he c a s h ie r a t
w o rk d id n o t n o tic e th e e n tr a n c e o f th e
b a n d i t , w h o c o v e r e d h im w i t h a r e v o l v e r
a n d a f t e r w a r d s b o u n d h im . A n o t h e r p e r ­
s o n in a c a r a w a ite d th e b a n d it o u ts id e
a n d th e y m a d e t h e i r g e ta w a y w ith o u t
l e a v i n g a n y c lu e s .
M a k e S e rv ic e C h a rg e
E ffe c tiv e O c to b e r 1 s t, b a n k s o f S ta r k
c o u n t y , N o r t h D a k o t a , w ill a t t a c h a s e r v ­

Two Minutes to Play!
The East had conceded itself the victory—too soon
T was East vs. W est in the great­
est o f all intersectional contests.
T h e football cham pions o f the
B ig T en w ere o n the short end o f
the score by on e p oint. A scant tw o
m inutes rem ained to play.

I

T h en , above th e terrific d in from
the Eastern stands cam e th e W est’s
old fam iliar battle song. Across the
field it swept, in u n ison from th ou ­
sands o f husky throats. Louder in
volum e it sw elled in a m ighty burst
o f loyalty. A n oth er play failed, but
its t h r illin g stra in s h a d reach ed
those eleven w estern warriors on a
foreign field.
T he n ext p lay started—in th e tw in k ­
ling o f an eye, a you th w ith winged
feet and a stout heart h ad broken
through. T w o seconds m ore and a
clear field lay b efo r e h im . T h en
Victory! T h e W est had w on and a

n ew hero was crow ned w ith foot­
ball fam e.T h e B ig T en w as supreme.
W h at lay b eh in d that m ad dash
for a touchdow n? Strenuous work
by th e players! In ten se loyalty by
the students and players! Character­
istics c o m m o n to A m erican U n i­
versities.
*

*

*

Less e m o tio n a l, p e rh a p s , b u t g u id ­
ed b y a s p irit o f u n u s u a l lo y a lty is
D r o v e r s Se r v i c e . T h e spectacular
m a y b e m issin g , b u t d a y in a n d d a y
o u t th e c a re fu l a n d conscien tio u s
w o r k o f officers a n d e m p lo y e s has
m a d e fo r it a n e n v ia b le re c o rd .

Its m erit strongly recom m ends the
DROVERS B anks as your Chicago
C orrespondent— endorsed through
use by over a th ou sand representa­
tive C orrespondent B anks in the
M iddle W est.

D

r
overs
NATIONAL B A N K

TRUST& §ÄVEVGS BANK

U n io n


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

S to c k

Y a r d s, C h ic a g o

O c to b e r,

THE

1926

NO R T H W B S T E K N

BAN K E R
o f th is co m p an y . T he
s o lic ite d a n d a f t e r a
tio n b y M r. B a ile y a s
f o r f u t u r e p ro m o tio n ,
c e p t.

IOWA
SEGTION
P re sid e n t............................. A. 0 . Sm ith
C linton
V ice P re sid e n t..................... John Sieh
Spencer
T reasurer.......................P. A. Schuetz
L aw ler
S ecretary....................... Frank W arner
Des M oines

M cDade R esigns
E.
D . M cD ad e, a s s is ta n t tr e a s u re r o f
th e Io w a L o a n a n d T r u s t C o m p a n y , D es
M o in e s , h a s re s ig n e d a n d w ith h is f a m ­
i l y w i l l m o t o r t o L o s A ng*eles a b o u t O c to ­
b e r 1 s t, w h e re h e e x p e c ts to r e - e n te r th e
b a n k in g b u sin e ss.
M r. M c D a d e h a s b e e n a s s o c ia te d w ith
th e Io w a L o a n a n d T r u s t C o m p a n y f o r
a b o u t fiv e y e a r s . H i s s u c c e s s o r h a s n o t
been nam ed.

FR A N K W ARNER
Secretary

fu n d s.
T h i s c h a r g e w ill n o t t a k e t h e
fo rm o f a p e n a lty b u t a c h a rg e fo r a d d i­
tio n a l s e rv ic e s p e r f o r m e d in h a n d lin g th e
c h e c k s . A s e c o n d s t e p in t h e c a m p a i g n
to b e s t a g e d b y b a n k e r s i s t h a t n o c h e c k
w ill b e c l e a r e d t h r o u g h t h e c l e a r i n g h o u s e
m o r e t h a n o n c e , a n d r e t u r n e d c h e c k s in
t h e f u t u r e w ill h a v e to b e h a n d l e d d i ­
r e c t l y w i t h t h e b a n k u p o n w h ic h t h e y a r e
d ra w n .

W ith Farm Loan D epartm ent
Charge for O verdrafts

W . H . B a ile y h a s re s ig n e d h is p o s itio n

S io u x C ity , Io w a , b a n k s , a c tin g th r o u g h
th e c le a rin g h o u se a s s o c ia tio n , h a v e a n ­
n o u n c e d t h a t a c h a r g e o f 2 5 c e n t s w ill
be

assessed

e v e ry

check

a g a in s t

th e

w ritte n

d e p o s ito r

w ith

fo r

i n s u f f i c ie n t

w ith th e F i r s t N a tio n a l B a n k o f A r m ­
s t r o n g , I o w a , a n d lia s a c c e p t e d a p o s i t i o n
in t h e f a r m l o a n d e p a r t m e n t o f t h e N o r t h ­
w est

M u tu a l

p o s itio n cam e u n ­
c a re f u l in v e s tig a ­
to t h e p o s s i b i l i t i e s
h e d e c id e d t o a c ­

County Bankers M eet

Officers Iowa Bankers
Association

A. C. SM ITH
P resid en t

86

In s u ra n c e

C om pany

and

w ill b e l o c a t e d a t t h e C e d a r R a p i d s office

T h e s e s s io n o f t h e F a y e t t e C o u n ty
B a n k e r s A s s o c i a t i o n w a s h e l d i n O e lw e in , I o w a , r e c e n t l y , t h e m e e t i n g b e i n g
h e l d a t t h e C o u n t r y C lu b , w h e r e a fin e
d i n n e r w a s s e r v e d a t 6 :3 0 . T h e r e w e r e
fifty -s e v e n g u e s ts re g is te r e d , a ll b u t th r e e
b a n k s in th e c o u n ty b e in g re p r e s e n te d .
A s h o r t p ro g ra m , u n d e r d ire c tio n o f
H u b e r t K a r r m a n n , w a s g iv e n , c o n s i s t i n g
o f s o m e fin e v i o l i n a n d p i a n o s e l e c t i o n s
b y M rs . B ru m lic k a n d S o p h ia H a n s o n , a
s o lo b y R a y m o n d J i p s o n a n d a r e a d i n g
b y M a x in e K in g .
A f t e r th e p ro g r a m th e m e e tin g g o t
d o w n to b u s i n e s s .
I t b e in g th e a n n u a l
e l e c t i o n o f o ff ic e rs , t h e f o l l o w i n g w e r e
re -e le c te d f o r th e n e x t y e a r : P re s id e n t,
J o e M e n g e r s , A r l i n g t o n ; v ic e p r e s i d e n t ,
J . A . E ric k s o n , C le rm o n t; tr e a s u r e r , A .
B . B lu n t, M a y n a r d ; s e c r e ta r y , G. A . K id d ,
O e lw e in .
T h e d is c u s s i o n s w e r e l a r g e l y o n t h e
s u b je c t o f th e v ig ila n te s re c e n tly o rg a n ­
iz e d f o r th e b a n k s ’ p r o te c tio n in th e
c o u n ty , a n d it w a s v o te d to b u y th e n e c ­
e s s a r y a rm s a n d a m m u n itio n to e q u ip
th e m . T h e a s s o c ia tio n a ls o v o te d th a n k s
t o t h e O e lw e in b a n k e r s a n d t h e O e lw e in
C o u n t r y C lu b f o r t h e e n t e r t a i n m e n t p r o ­
v id e d .

In New Location

N e w hom e o f th e W alker D . H a n n a C orporation a t B u rlin g to n
W . D . H a n n a a n d C o m p a n y , in v e s tm e n t
b a n k e rs

o f B u rlin g to n , Io w a ,

have

an­

n o u n c e d t h e r e m o v a l o f i t s h o m e o ffices
to l a r g e r q u a r te r s .

T h e y w ill o c c u p y th e

e n t i r e s e c o n d flo o r o f t h e B o c k B u i l d i n g ,
lo c a te d a t 308 N o r th T h ir d S tr e e t, a c e n ­
t r a l l o c a t i o n in B u r l i n g t o n ’s b u s i n e s s s e c ­
tio n .


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

T h e n e w o ffices w ill c o v e r 1 ,0 0 0 s q u a r e
f e e t o f flo o r s p a c e , a n d w ill b e e q u i p p e d
in th e m o s t u p -to -d a te m a n n e r. A c o rd ­
le s s t e l e p h o n e e x c h a n g e w i l l b e i n s t a l l e d ,
a n d t h e y w ill a ls o m a i n t a i n a s t a t i s t i c a l
b u re a u c o n c e rn in g a ll k in d s o f b o n d s.
W . D. H a n n a a n d C om pany a re m em ­
b e rs o f th e I n v e s tm e n t B a n k e rs A s s o c ia ­
tio n o f A m e ric a , th e Io w a B a n k e rs A s s o ­

c ia tio n , a n d th e D e s M o in e s C o u n ty B a n k ­
e rs A s s o c ia tio n .
T h ey m a in ta in b ra n c h
offices a t M u s c a t i n e , S . E . P h i l l i p s , m a n ­
a g e r ; W a t e r l o o , L e o L . M a k a n d L e s li e
H . S c h r u b b e , m a n a g e r s ; a n d a t L in c o l n ,
N e b ra s k a , u n d e r th e d ir e c tio n o f L . J .
S h e a re r.
M o st o f th e p e rs o n n e l o f th e o rg a n iz a ­
t i o n a r e a ls o s t o c k h o l d e r s .

84

T H E

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

B A N K E R

October, 1926
Change Corporate N am e

T h e C o n t i n e n t a l a n d C o m m e r c ia l C o m ­
p a n y , C h ic a g o , a n a d j u n c t o f t h e C o n t i ­
n e n t a l a n d C o m m e r c ia l N a t i o n a l B a n k , o f
w h ic h tw o f o r m e r I o w a b a n k e r s , G e o r g e
M . a n d A r t h u r R e y n o ld s , a r e c h a ir m a n
o f th e b o a rd a n d p r e s id e n t re s p e c tiv e ly ,
r e c e n t l y f ile d a r t i c l e s o f i n c o r p o r a t i o n
w ith th e Io w a s e c r e ta r y o f s ta te .
T h e b o n d d e p a r tm e n t o f th e b a n k h a s
o p e r a t e d i n D e s M o in e s f o r tw o y e a r s
u n d e r th e title , C o n tin e n ta l a n d C o m m e r­
c ia l T r u s t a n d S a v in g s B a n k . T h e c h a n g e
in n a m e w a s s a id to b e re s p o n s ib le f o r
t h e f i li n g o f n e w a r t i c l e s .

Sioux City A. B. A.
T h e w in te r s c h o o l f o r b a n k e m p lo y e e s,
c o n d u c te d b y th e A m e ric a n I n s t i t u t e o f
B a n k in g , o p e n e d a t a d in n e r a n d r a lly
h e l d o n t h e e v e n i n g o f S e p t e m b e r 2 5 th ,
b y th e S io u x C ity , Io w a , c h a p te r a t th e
W e s t H o te l.
J a m e s F . H a r t , a s s is t a n t c a s h ie r o f th e
Io w a N a tio n a l B a n k , D es M o in e s , Io w a ,
w as th e g u e s t o f h o n o r a t a re c e n t m e e t­
in g . M r . H a r t w a s p r e s e n t t o a s s i s t in
o u tlin in g th e c o u rs e s o f s tu d y to b e u s e d
in th e sc h o o l th is w in te r.
T h e r e w e r e 65 s t u d e n t s e n r o l l e d l a s t
y e a r f o r th e c o u rs e , a n d a m u c h la r g e r
e n r o l l m e n t is e x p e c t e d t h i s y e a r , i t w a s
announced.
T h e p la c e o f th e o p e n in g
m e e t i n g w ill b e a n n o u n c e d l a t e r , o ffic ia ls
sa id .

Clinton B anker W eds
A m a r r i a g e c e r e m o n y u n i t i n g M is s
H e le n W illih n g a n z , d a u g h te r o f M r. a n d
M rs. F r a n k W illih n g a n z o f 928 S o u th
S ix th s tr e e t, a n d J a m e s E r n e s t B ab co ck ,
so n o f M r. a n d M rs. E rn e s t B a b co ck o f
530 T h ir d a v e n u e , C lin to n , Io w a , w a s
p e r f o r m e d r e c e n t l y b y R e v . F r e d e r i c G.
W illia m s a t G ra c e E p is c o p a l C h u rc h .
T h e b r i d e is a g r a d u a t e o f t h e L y o n s
H i g h s c h o o l, c la s s o f 1 9 2 4 . S h e h a s b e e n
a c tiv e ly c o n n e c te d w ith th e e n te r p r is e s
o f G ra c e E p is c o p a l C h u rc h , a m e m b e r o f
t h e G i r l s ’ F r i e n d l y S o c i e t y , w h ic h a t ­
t e n d e d t h e w e d d i n g i n a g r o u p , a n d a ls o
a fa v o re d S u n d a y sch o o l w o rk e r.
M r.
B a b c o c k w a s g r a d u a te d f r o m th e C lin to n
H i g h s c h o o l, c l a s s o f 1 9 2 2 . H e is n o w
e m p lo y e d a t th e C ity N a tio n a l B a n k ,
C li n to n .

‘f o u n d e d by
G E O R G E H. R A G S D A L E
E D W I N G. R A G S D A L E
SE C R E T A R v


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

H old A nnual Outing
O ffic e rs , e m p l o y e e s a n d d i r e c t o r s o f
th e U n io n S a v in g s B a n k a n d T r u s t C om p a n y , D a v e n p o rt, Io w a , h e ld t h e i r a n n u a l
o u t i n g a t t h e S p r i n g b r o o k C o u n t r y C lu b
re c e n tly , a n a tte n d a n c e o f 60 b e in g r e ­
c o r d e d . W m . W i e c k , R a y C a m b l in a n d
W m . F . S ie g l e t i e d f o r f i r s t p l a c e i n t h e
h a n d ic a p g o lf to u r n a m e n t a f t e r a s p ir ite d
b a tt le f o r th e tr o p h y c u p w h ic h P r e s i ­
d e n t W m . H e u e r h a d o ffe re d f o r th e w in ­
n e r.
W i l l i a m G o o d e ll w o n t h e h o r s e s h o e
p itc h in g c o n te s t, E d it h A th e r to n th e la ­
d ie s ’ g o lf d r iv in g c o n te s t, M rs . L u c ile

October, 1926

THE

D ittm e r
th e
la d ie s ’ p u ttin g
c o n te s t,
F r a n c e s O ’C o n n o r t h e n a i l d r i v i n g c o n ­
te s t a n d H a z e l V o ss th e b a llo o n b u r s tin g
c o n te s t.
A tto r n e y C h a rle s G r ilk a n n o u n c e d th e
w in n e rs
in
th e
v a rio u s
e v e n ts
and
a w a r d e d t h e p r i z e s . M a u r i c e L e a h y le d
th e c o m m u n ity s in g in g .
F o llo w in g d in ­
n e r t h o s e p r e s e n t e n t e r t a i n e d th e m s e l v e s
w ith c a r d s a n d d a n c in g .

Presidential Candidate
for 1927
O f p a r t ic u l a r in te r e s t to Io w a b a n k ­
e r s , is t h e a n n o u n c e m e n t b y f r i e n d s o f
G e o rg e J . S c h a lle r, p r e s id e n t o f th e C iti­
z e n s F i r s t N a tio n a l B a n k o f S to r m L a k e ,
Io w a , t h a t h e h a s c o n s e n te d to b eco m e
a c a n d id a te f o r th e p re s id e n c y o f th e
Io w a B a n k e r s A s s o c ia tio n n e x t y e a r , in
1927.
M r . S c h a l l e r is a v e t e r a n i n A s s o c i a ­
t i o n c i r c l e s , a n d is w i d e l y k n o w n t h r o u g h ­
o u t th e s ta te . H e firs t e n te r e d th e b a n k ­
i n g b u s i n e s s i n S t o r m L a k e in 1 8 9 2 , a n d ,
w ith th e e x c e p tio n o f th r e e o r f o u r y e a rs ,
h a s b e e n c o n t i n u o u s l y in t h a t b u s i n e s s
s in c e th e n .

NOR T H W B S T B R N

85

BANKER

Changes at Union
C e r ta in c h a n g e s in th e m a n a g e m e n t o f
t h e U n i o n S a v i n g s B a n k o f U n io n , I o w a ,
w h ic h h a v e b e e n u n d e r c o n s i d e r a t i o n f o r
so m e tim e c a m e to a h e a d r e c e n tly , w h e n
t h e r e s i g n a t i o n o f D . D . R e y n o l d s a s v ic e
p r e s i d e n t , w h ic h h a d b e e n o n t h e t a b l e
f o r so m e tim e w a s a c c e p te d a n d h e a n d
h i s f a t h e r , W . H . R e y n o l d s , o f S h e ff ie ld ,
w ill a ls o r e t i r e f r o m , t h e b o a r d o f d i r e c ­
to r s fo llo w in g th e s a le o f t h e i r s to c k to
o th e r m e m b e rs o f th e b o a rd .
M aso n , a s s is ta n t c a sh ie r, w a s

W . S.
e le c te d

c a s h i e r a n d A . J . T i s d a l e , o f C o lo , w a s
c h o s e n a s s i s t a n t c a s h i e r . C. V . H a u s e r , o f

W h i t t e n a n d L . J . G le n n e y , o f U n io n ,
w e r e a l s o e l e c t e d to ' m e m b e r s h i p o n t h e
b o a r d o f d ir e c to r s a n d o n e p la c e y e t r e ­
m a i n s t o b e fille d , a ls o t h e p o s i t i o n o f
v ic e p r e s i d e n t w a s l e f t v a c a n t f o r t h e
ti m e b e in g . A l l o f t h e a b o v e c h a n g e s a r e
e f f e c ti v e O c t o b e r 1 s t .
D . D . R e y n o l d s e x p e c t s t o m o v e to
A m e s a n d w ill t a k e o v e r a d i s t r i c t a g e n c y
f o r th e E q u ita b le L ife I n s u ra n c e C o m ­
p a n y o f Io w a , h is te r r i t o r y b e in g S to r y
C o u n ty a n d p o r tio n s o f H a r d in a n d M a r ­
s h a ll C o u n tie s . H e h a s b e e n g iv in g c o n ­
s id e r a b le tim e to th e in s u r a n c e b u s in e s s
a n d h a s c o n te m p la te d m a k in g th e c h a n g e
f o r a y e a r o r m o re.

T O W A bankers

J- who have worked
through us will tell
you that a connection
with the Bankers
Trust in Des Moines
can be a real advan^
tage to your bank.

GEO. J . S C H A L L E R
T h e C itiz e n s F i r s t N a tio n a l B a n k o f
S t o r m L a k e , o f w h i c h M r . S c h a l l e r is
p r e s id e n t, w a s o rg a n iz e d in 1902 b y M r.
S c h a lle r a n d h is f a t h e r , a n d is k n o w n a s
o n e o f th e b e s t m a n a g e d b a n k s in th e
s ta te .
M r . S c h a l l e r is n o s t r a n g e r i n S t a t e
A s s o c i a t i o n w o r k . F o r t h e p a s t fiv e o r
s ix y e a r s h e h a s b e e n a m e m b e r o f th e
A s s o c ia tio n L e g is la tiv e C o m m itte e , a n d
c h a ir m a n o f t h a t c o m m itte e th e p a s t th r e e
y e a rs . I n a d d itio n , h e h a s b e e n p ro m i­
n e n t in th e a c tiv itie s o f h is G ro u p .


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

BANKERS TRUST CO.
B A N

K

Cor. 6th and L ocu st Sts., D es M oines
Capital $ 1 ,0 0 0 ,0 0 0 .0 0

Surplus $ 2 0 0 ,0 0 0 .0 0

VlEMBEFT
^FEDERAL RESERVE^
J 5YSTEN

THE

86

N 0 R T II W E 8 T E R N

BANKER

October, 1926
E lect N ew Cashier

M ERCHANTS
N A T IO N A L B A N K
C E D A R

RA P ID S ,

IOWA

“ Have done more
than they agreed”
Doing what is promised is one thing,
and doing more is another.
Read this cashier’s letter about the re­
lations he has had as a correspondent
bank of the Merchants National:
“This bank has carried an account with
the Merchants National Bank of Cedar
Rapids for the past ten years, and we have
always found the officers ready and willing
to give us more than the ordinary amount
of service that we could expect. In fact,
I believe I can say they have in every in­
stance done more for us than they have
agreed to do.”

R esources $15,000,000
Jam es E. H a m ilto n , P resid en t

P. C. F ric k
Vice P re sid e n t

M ark J . M yers
Vice P res. & Cash.

E. E. P in n e y
Vice P re sid e n t

S. E. C oquillette
V ice P re sid e n t

E d w in H . F u rro w
Vice P re sid e n t

E. B. Zbanek
Vice P re sid e n t

H . N . Boyson
Vice P re sid e n t

L. W . B roulik
A ssista n t C ashier

Roy C. Folsom
Vice P resid e n t

F red W . S m ith
A ssista n t C ashier

è

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

The
C itiz e n s
S a v in g s B a n k , W e s t
B r a n c h , I o w a , h a s e l e c t e d R . W . M i ll e n
c a s h ie r to su c c e e d P . V . N . M y e rs, w h o
h a s re s ig n e d a f t e r tw e n ty - e ig h t y e a rs o f
e ff ic ie n t s e r v i c e , a n d is l e a v i n g t h e b a n k ­
i n g b u s i n e s s to e n t e r t h e i n s u r a n c e fie ld .
M r. M ille n n e e d s n o in tr o d u c tio n , h a v ­
in g b e e n e m p lo y e d a s a s s is t a n t c a s h ie r
d u r in g th e p a s t six y e a rs , a n d h is p r o ­
m o t i o n is w e ll d e s e r v e d .
E u g en e G ra y h a s b een ch o sen as a s ­
s is ta n t c a s h ie r.

E nters D rake
M illa r d R ile y , w h o h a s b e e n e m p lo y e d
as a s s is ta n t c a s h ie r a t th e F i r s t N a tio n a l
B a n k o f W illia m s , Io w a , f o r th e p a s t
tw o y e a r s , r e s i g n e d f r o m h i s p o s i t i o n .
M r . R i l e y w ill e n t e r D r a k e U n i v e r s i t y ,
w h e r e h e w ill s t u d y f o r t h e m i n i s t r y . H e
h a s m a d e m a n y f r ie n d s in W illia m s w h o
r e g r e t v e r y m u c h t o s e e h im le a v e , a n d
h o p e f o r h im s u c c e s s i n h is c h o s e n w o r k .
T h e v a c a n c y a t t h e b a n k h a s b e e n fille d
b y G eo rg e J o h n s o n , w h o h a s b e e n c le r k ­
i n g in J o h n s o n B ro js. s t o r e .

E lect County Officers
A t th e a n n u a l m e e tin g o f th e P ly m o u th
C o u n ty B a n k e r s A s s o c ia tio n in L e M a rs ,
I o w a , r e c e n t l y , o ff ic e rs w e r e e l e c t e d a s
f o l lo w s : P r e s id e n t, H . S h o u lb e rg , A k ­
r o n ; v ic e p r e s i d e n t , G e o r g e E l l i s o n , H i n ­
to n ; s e c r e ta r y , E . H . Y o u n g s tr o m , A k ­
r o n ; tr e a s u r e r , W . G . S ie v e rs , R e m s e n .

Brenton Banks P icnic
A b o u t f if ty p e o p le c o m p r is in g th e e m ­
p lo y e e s a n d t h e i r f a m i l i e s o f t h e B r e n t o n
b a n k s g a th e r e d a t th e P e r r y , Io w a , C o u n ­
t r y C lu b r e c e n t l y a n d e n j o y e d t h e a f t e r ­
n o o n a n d e v e n i n g i n a s o c i a l g o o d ti m e .
T h e m a in f e a t u r e o f th e a f te r n o o n w a s
th e K i t t y B a ll g a m e b e tw e e n th e e m ­
p lo y e e s o f t h e b a n k s o f D a l l a s C e n t e r ,
W a u k e e , V a n M e te r a n d G r a n g e r in th e
s o u th h a l f a g a in s t th e e m p lo y e e s o f th e
b a n k s o f Je ffe rso n , D an a, W o o d w a rd a n d
P e r r y in th e n o r th h a lf .
W h ile th e b a ll g a m e w a s in p ro g r e s s ,
th e la d ie s w h o w e re n o t e n g a g e d in p la y ­
in g , s p e n t t h e t i m e i n s o c i a l c o n v e r s a t i o n
a n d g a m e s m o r e t o t h e i r lik in g .
A t 6 :3 0 o ’c lo c k , t h e s e c o n d f e a t u r e o f
t h e p ic n i c to o k p la c e .
A p ic n i c s u p p e r .
A n d , a c c o r d i n g t o t h e lo c a l p e o p le w h o
h a d t h e p r i v i l e g e o f a t t e n d i n g t h e p ic n i c ,
i t Avas a r e a l s u p p e r .
F o llo w in g th e b ig m e a l, th e b a la n c e o f
th e e v e n in g w a s s p e n t b y th o s e w h o w e re
a b le to d o so , i n d a n c i n g , m u s ic f o r t h e
o c c a sio n b e in g f u r n is h e d b y M rs. F r a n k
C hapm an
and
M r. C h a rle s
C r a w le y .
T h o se w ho h a d o v e re a te n s p e n t th e ir
t i m e in c o n v e r s a t i o n a n d p l a y i n g b r i d g e .

I f t h e m o u n t a i n w ill n o t c o m e to M o ­
h a m m e d , M o h a m m e d w ill g o t o t h e m o u n ­
t a i n .— M o h a m m e d .

October, 1926

THE

NORTHWESTERN

BANKER

E lected A ssista n t Cashier
A t a r e c e n t m e e tin g o f th e b o a r d o f d i­
re c to rs o f th e F i r s t N a tio n a l B a n k , E lk a d e r, Io w a , E r n e s t F . S e if e r t w a s e le c te d
to t h e p o s i t i o n o f a s s i s t a n t c a s h i e r t o fill
th e v a c a n c y c a u s e d b y th e r e s ig n a tio n o f
L u c y L e n t h , w h o lia s b e e n e m p l o y e d in
th is i n s ti tu t io n f o r th e p a s t e ig h t y e a r s .

Office in Storm Lake
E x -s e n a to r B e n C. A b b e n o f L ittle
R o c k , Io w a , m o v e d to S to r m L a k e r e ­
c e n t l y to t a k e u p o ffices i n t h e W . F . P a r k
b u ild in g f o r c a r r y in g o n f a r m lo a n , in ­
v e s tm e n t, in s u r a n c e a n d c o lle c tio n b u s i­
n ess.

G randfather A gain
H a r r y T . B l a c k b u r n , v ic e p r e s i d e n t o f
t h e I o w a N a t i o n a l B a n k , D e s M o i n e s , is
a g a in a g r a n d f a th e r . H e re c e iv e d a te le ­
g ra m re c e n tly o f th e b ir th o f a d a u g h te r
to M r . a n d M r s . M o r t i m e r B l a c k b u r n i n
P a l o A lto , C a l i f o r n i a . T h is is t h e s e c o n d
d a u g h te r o f M r. a n d M rs. B la c k b u rn .

1926

1872

Back from V acation
R . M . M o e h n , c a s h ie r o f th e C o m m e r­
c i a l S a v i n g s B a n k , C a r r o l l , I o w a , is b a c k
a t w o rk a f t e r a th r e e w e e k s ’ v a c a tio n .
W ith M rs. M o e h n a n d c h ild re n h e m o ­
to r e d th r o u g h n o r th e r n Io w a to M in n e ­
a p o lis , th e n c e to D u lu th , a n d r e t u r n e d to
C a rro ll th r o u g h th e B la c k H ills o f th e
D a k o ta s .

P a y fo r P rin tin g
T h e b a n k s o f G rin n e ll, Io w a , a n n o u n c e
th e i r in te n tio n o f d is c o n tin u in g th e c u s ­
to m o f h a v i n g c h e c k s p r i n t e d w i t h t h e
c a r d s o f c u s to m e rs . T h e b a n k s w ill c o n ­
tin u e to s u p p ly c h e c k s a s b e f o r e b u t th e y
b e li e v e t h a t t h e c u s t o m e r s s h o u l d p a y f o r
th e ir ow n p rin tin g .
T h i s a c t i o n o f t h e b a n k s o f G r i n n e l l is
i n l i n e w i t h t h e a c t i o n t a k e n b y b a n k s in
n e i g h b o r i n g to w n s a n d i n m a n y o t h e r
p l a c e s in t h e i n t e r e s t o f e c o n o m y a n d b e t ­
t e r m a n a g e m e n t. T h e b a n k s e x n la in t h a t
t h e c o s t t o t h e i n d i v i d u a l w ill b e s l i g h t
b u t t h a t to th e b a n k it re a c h e s a n a m o u n t
o f te n s ta g g e rin g .
T h e o ff ic e rs o f b o th
b a n k s s t a te t h a t th e v a re a n x io u s to h a v e
th e i r m o tiv e s u n d e r s to o d a n d to h a v e th e
p u b lic a p p r e c ia te th e g r e a tn e s s o f th e
b u r d e n w h i c h t h e b a n k s h a v e b e e n c a ll e d
u p o n t o b e a r u n d e r t h e o ld s y s t e m .

A ppointed Cashier
A p p o i n t m e n t o f R o b e r t P . G ill o g ly a s
c a s h ie r o f th e F i r s t T r u s t & S a v in g s
B a n k o f R o c k I s la n d , Illin o is , w a s a n ­
n o u n c e d re c e n tly .
H e s u c c e e d s to th e
p o s t h e ld b y 0 . 0 . L if t, w h o d ie d s e v e r a l
m o n t h s a g o . E . A . B e e r s is t h e p r e s i d e n t .
M r . G ill o g ly h a s b e e n a s s o c i a t e d w i t h
th e R o c k I s la n d b a n k f o r s ix y e a r s a n d
f o r th e p a s t th r e e y e a rs h a s b e e n a s s is t­
a n t c a s h ie r. P r i o r to t h a t h e w a s a s s o ­
c ia te d w ith th e C itiz e n s T r u s t & S a v in g s
B a n k o f D a v e n p o rt, Io w a .


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

Over 1,000 Iowa Banks
Find It Convenient
to Have a
Des Moines Checking
Account

M a n y o f T h ese Like
Our
F rien d ly S ervice
I

o w
$

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a
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M

i
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o

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--------B A N K - ’------

Member Federal Reserve S v s ierrt

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

y

THE

88

NO R T H W E S T E R N B A N K E R

October, 1926
Close at N oontim e

CAPITAL AND SURPLUS OVER 61,000,000.00
Established 1874

“Reputation
Is the
W orld’s
Measure
of an
Institution”

B e g in n in g w ith S e p te m b e r 1 5 th , th e
C i t i z e n s S t a t e B a n k o f P a n o r a , I o w a , w ill
b e c lo s e d o n e h o u r a t n o o n e a c h d a y , f r o m
t w e l v e u n t i l o n e o ’c lo c k .
T h is s t e p is t a k e n l a r g e l y a s a s a f e t y
m e a s u re in o r d e r t h a t o n e p e rs o n m a y
n o t b e l e f t a l o n e i n t h e b a n k a t a n y ti m e
d u rin g th e d a y .
E a c h m e m b e r o f th e
f o r c e a ls o h a s a c h i l d i n s c h o o l a n d t h e
h o u r o ft a t n o o n m a k e s it m u c h m o re c o n ­
v e n ie n t f o r a ll as f a r a s fa m ily d in n e rs
a re c o n c e rn e d .

A dopt S ervice Charge
T o m e e t t h e c o n i t n u a l lo s s , t h r o u g h t h e
h a n d lin g o f s m a ll c h e e k in g a c c o u n ts , th e
F a rm e rs
S a v in g s a n d
S ta te
S a v in g s
B a n k s o f U te , Io w a , h a v e c o m e to th e
c o n c lu s io n t h a t a s m a ll s e rv ic e c h a rg e
m u s t be a s k e d fr o m c u s to m e rs c a rr y in g
a c h e c k i n g a c c o u n t b e lo w $ 5 0 , a t a n y
o n e tim e d u r in g a c u r r e n t m o n th .
T h is s y s t e m o f s e r v i c e c h a r g e h a s b e e n
i n e f f e c t i n t h e c i t i e s f o r t h e p a s t tw o
y e a r s , a n d is b e i n g a d o p t e d b y a l a r g e
n u m b e r o f t h e s m a l l to w n b a n k s in t h e
c o u n ty a n d s ta te .
R e c e n tly th e M a p le to n b a n k s m a d e th e a n n o u n c e m e n t o f th e
a d o p tio n o f th e s y s te m .

O F F IC E R S

CHARLES E. PERK INS.
Chairman of Board
E. W EBBLES. President
J. G. WALDSCHMIDT, Vice Pres.
W. C. KURRLE, Vice President
C. T. SIMMONS, Vice President
R. L. BUNCE, Vice President
L. M. WILSON, Cashier
ELMER RAUENBUEHLER,
Assistant Cashier
L. T. PANTHER, Assistant Cashier
F. J. NORTON, Assistant Cashier
RAY HUMPHREY,
Manager Bond Department
T. H. WILSON, Auditor

D IR E C T O R S

JOHN BLAUL, President John Blaui’s Sons Co.
WILLIAM BONGERT, Treasurer Dehner Cigar Co.
VILLI AM CARSON. President Boise Payette Lumber Co.
H. W. CHITTENDEN. President Chittenden & Eastman Co.
W. N I'll E l!<'|| ILL. President Churchill Drug Co.
J. R. COPELAND, President Clinton Copeland Company
WALTER B. EATON, Nice Pres. Chittenden & Eastman Cot
W E OILMAN Secretary Burlington Lumber Co.
HAROLD W. GRUPE, Vice Pres. Lagomarcino-Grupe Co.
G. G. Illl.B E E . President Murray Iron Works
C. S. LEOPOLD President Leopold Desk Co.
C. II MOIILAND, Attorney
ROBERT MOIR, Capitalist
C. E. PERKINS. Trustee
E. S. PH ELPS, Insurance
H. S. RAND President Rand I.umber Co.
RAY RED FERN , Farmer
HENRY RITTER. Retired
J. J, SEERLEY. Attorney
RALPH E. SCHRAMM. J. S. Schramm Co.
E. WEBBLES. President

E lected Cashier
R . W . M ille n h a s b e e n e le c te d c a s h ie r
o f th e C itiz e n s S a v in g s B a n k o f W e s t
B r a n c h , I o w a , to s u c c e e d P . V . N . M y e r s ,
w h o se r e s ig n a tio n to o k e ffe c t S e p te m b e r
1 6 th . M r . M y e r s h a s b e e n c a s h i e r o f t h i s
b a n k tw e n ty - e ig h t y e a r s , e v e r s in c e it s
o rg a n iz a tio n .
E u g en e G ra y h as been
e le c te d a s s is t a n t c a s h ie r.

Chosen P resid ent
G e o i’g e T h o m p s o n , a s s i s t a n t c a s h i e r o f
th e D e s M o in e s N a tio n a l B a n k , w a s
e le c te d p r e s id e n t o f th e n e w ly o rg a n iz e d
B a n k A u d ito r s C o n fe re n c e a t th e se c o n d
m e e tin g , h e ld r e c e n tly a t Y o u n k e rs T e a
R oom .
R a y m o n d M ille r o f th e C a p ita l C ity
S t a t e B a n k w a s n a m e d v ic e p r e s i d e n t ,
a n d J . E . B r a d b u r y o f th e B a n k e r s T r u s t
C o m p a n y w a s c h o se n d e le g a te to th e
A m e ric a n B a n k e rs A s s o c ia tio n c o n v e n ­
tio n .
T h e c o n f e r e n c e w i l l b e a f f ili a te d w ith
th e c le a rin g h o u se s e c tio n o f th e A . B . A .
a n d w ill b e p a t t e r n e d a f t e r s i m i l a r c o n ­
f e r e n c e s a l r e a d y e x i s t i n g in t h e l a r g e
c itie s .

F rank M. F o ley Dead

KI D C T io w x s t a t e d a w

I

1K O

MEMBER

1 TRUST & SAVINGS D A I N i A

FEDERAL RESERVE S Y S T E M B U R L IN G T O N IA.


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

F r a n k M . F o l e y , o n e o f t h e m o s t w id e ly
k n o w n m e n o f D e la w a re c o u n ty , a n d
p r e s id e n t o f th e S e c u r ity T r u s t a n d S a v ­
in g s B a n k o f R y a n , Io w a , d ie d a t M e rc y
H o s p ita l a t C e d a r R a p id s , d e a th b e in g
d u e to p n e u m o n i a .
M r . F o l e y w a s b o r n in M u s c a t i n e
c o u n ty , Io w a , A u g u s t 19, 1873.
H is
f a t h e r ’s f a m i l y c a m e t o D u b u q u e c o u n t y
w h en h e w as a m ere boy.
H e g r e w to

THE

October, 1926

y o u n g m a n h o o d in D u b u q u e c o u n ty , a n d
th ir ty - f iv e y e a r s a g o th e f a m ily c a m e to
D e la w a re c o u n ty a n d lo c a te d a t R y a n .
F o r m o re th a n tw e n ty y e a rs M r. F o le y
w a s e n g a g e d in th e m e r c a n tile b u s in e s s
in R y a n , a n d la t e r e n g a g e d in b a n k in g .
F o r s o m e t i m e h e w a s t h e v ic e p r e s i d e n t
o f th e R y a n S ta t e B a n k , a n d a t th e tim e
o f th e d e a th o f th e la te W . H . N o rris , o f
th is c ity , M r. F o le y w a s e le c te d p r e s id e n t
o f th e S e c u r ity T r u s t a n d S a v in g s B a n k
o f R y a n , w h i c h p o s i t i o n h e fille d e x c e p ­
t i o n a l l y w e ll.

NORTHWESTERN

D IR E C T O R S A N D
O F F IC E R S

Statement of Condition
JUNE 30, 1926

Ask S ervice Charge
A n n o u n c e m e n t w a s m a d e re c e n tly by
M a p l e t o n ’s t h r e e b a n k i n g h o u s e s , M a p l e to n , I o w a , t h a t b e g i n n i n g O c t o b e r 1 s t a
s e r v ic e c h a rg e o f 50 c e n ts w ill b e m a d e
o n a ll c h e c k in g a c c o u n ts w h e re th e b a l­
a n c e f a l l s b e lo w $ 5 0 a t a n y t i m e d u r i n g
th e m o n th .
T h is p o li c y , w h ic h h a s b e e n i n e ffe c t in
h u n d re d s o f b a n k s in M in n e s o ta , W is c o n ­
s in a n d N e b r a s k a a n d o th e r m id d le w e s t­
e r n s t a t e s f o r t h e l a s t tw o y e a r s , h a s b e e n
s u g g e s te d b y th e “ B e tt e r B a n k in g C o m ­
m itte e ” o f th e Io w a B a n k e r s A s s o c ia tio n .
T h e c o m m itte e o n b a n k c o s ts o f th e
M in n e s o ta B a n k e rs A s s o c ia tio n s a y s t h a t
it c o sts a b a n k f o u r c e n ts f o r e a c h c h e c k
h a n d le d . E x a m in a tio n s h a v e b e e n sh o w n
th a t in n e a rly e v e ry b a n k m o re th a n h a lf
o f th e c h e c k in g a c c o u n ts h a v e b a la n c e s
o f le s s th a n $50 a n d t h a t th e t o t a l o f
t h e s e b a l a n c e s a m o u n t t o le s s t h a n 5 p e r
c e n t o f th e to t a l d e p o s its o f th e b a n k ;
a ls o t h a t t h e a v e r a g e b a l a n c e o f t h e s e a c ­
c o u n t s is le s s t h a n $ 1 5 .
C o n s i d e r i n g t h e e x p e n s e t h e b a n k is
u n d e rg o in g in th e w a y o f f u r n is h in g
c h e c k s, th e le d g e r le a v e s f o r th e b o o k ­
k e e p in g , c le r ic a l h e lp , p o s ta g e o n th e
m a ilin g o f s ta te m e n ts a n d p a s s b o o k s, it
is n o m o r e t h a n f a i r t h a t a s u f f ic i e n t b a l ­
a n c e s h o u ld b e m a i n ta i n e d to p a y th e e x ­
p e n s e s o f c a r r y i n g t h e a c c o u n t , i t is
p o in te d o u t b y b a n k e rs .

89

BANKER

RESOURCES
Time and Demand Loans . .$5,271,255.22
343,519.70
U. S. B o n d s ..............................
19,500.00
Stock in Federal Reserve Bank
86,201.95
Real Estate and Fixtures . .
Cash and Due from Banks and
U. S........................................... 1,236,286.07
$6,956,762.94
LIABILITIES
C a p ita l........................................ .$ 300,000.00
350,000.00
Surplus ...................................
113,103.31
Undivided P r o fits....................
Reserve for Taxes and Interest
90,000.00
C ir c u la tio n ......................... . 300,000.00
D e p o s i t s .............................. . 5,803,659.63

ALFRED G. SMITH,
Chairman
ALFRED C. SMITH.
President
G. L. CURTIS.
Vice President
President. Curtis
Companies, Inc.
G. W. DULANY, JR..
President, Eclipse
Lumber Co.
President, Climax
Engineering Co.
H. W. SEAMAN,
Inland Waterways Advisory
Committee
M. J. GABRIEL,
President Gabriel
Lumber & Fuel Co.
J. PETERSON,
J. O. SHAFF,
Farmer and Live Stock
Dealer
B. M. JACOBSEN,
E. J. CURTIS,
Vice President Curtis
Bros. & Co.
C. A. ARMSTRONG,
Pres. C. F. Curtis
Company, Inc.
W. R. SMITH,
General Manager
Clinton Corn Syrup
Refining Co.
A. P. BRYANT,
Manager of Operations
Clinton Corn Syrup
Refining Co.
F. H. VAN ALLEN,
V. P. and Sec’y.
J. D. Van Allen & Son
Inc.
H. S. TOWLE,
V. P. and Treas.
Towle & Hypes Co.
0. P. PETTY, Cashier

$6,956,762.94

J. H. NISSEN,
Assistant Cashier
H. G. KRAMER,
Assistant Cashier

E stablished

1870

Illustrations
AND

Cover Designs
fo r
H O U SE O R G A N S
SALES BULLETINS
CATALO G S

Herbert MacDonald
P roducing P ictures E xclu sively
for Sixteen Years

STUDIO AT THE CORNER OF
THIRD ST. AND SENECA AVE.
IN DES MOINES, IOWA


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

City National Bank
CLINTON IOWA

90

T HE

NOR T II W E S T E R N

WE HAVE IT
and it’s essential to us all

73he C edar R apids
N ational B ank
CEDAR RAPIDS, IOWA

OLD - TIME HOSPITALITY
The S pirit of Our Service

O FFICERS
R A LPH VAN V ECH TEN
Chairman of the Board

VAN V E CH TEN SH A FFE R
V ice President

GEO. W. SW AB
A ssista n t Cashier

GLENN M. A V ER IL L
P resident

CHAS. C. K U N IN G
V ice P resid en t and Cashier

M A RVIN R. SE LD EN
A ssista n t Cashier

GEO. F. M ILLER
V ice P resid en t

PE T E R B A IL E Y
A ssista n t Cashier

BER T H A M. WOLF
A ssista n t Cashier

B A N K E R

October, .1926

S e c u re T e m p o ra ry Q u a rte rs
A n o t h e r s t e p t o w a r d tt ie e r e c t i o n o f
t h e n e w $ 2 ,0 0 0 ,0 0 0 s k y s c r a p e r a n d b a n k
b u il d in g o f t h e A m e r i c 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, Io w a , w a s
ta k e n re c e n tly w h en P r e s id e n t E d . K a u f ­
m a n a n n o u n c e d th e le a s in g o f th e f o r m e r
P e o p le s L ig h t C o m p a n y b u ild in g a t 125127 W e s t T h ir d s t r e e t to s e r v e a s a te m ­
p o r a r y b a n k in g h o m e d u r in g th e c o n ­
s t r u c ti o n o f th e n e w b u ild in g .
T h e T h ir d s t r e e t b u ild in g , a m p ly la r g e
f o r th e p u rp o s e o f te m p o ra r y h o m e, w as
le a s e d o f t h e o w n e r , D r . C h a r l e s E . S m i t h
o f O m a h a , N e b r a s k a , o n a n o p e n le a s e ,
t h e b a n k to o c c u p y i t u n t i l t h e n e w h o m e
is c o m p l e te d .
I t is p r o b a b l e t h a t th e
b a n k w ill m o v e in to th e s e te m p o r a r y
q u a r te r s a b o u t th e f ir s t o f th e y e a r.
T h r o u g h t h i s le a s e t h e A m e r i c a n C o m ­
m e r c ia l w ill e x p e d i t e t h e c o n s t r u c t i o n o f
its n e w h o m e, e re c tin g i t in o n e u n it in ­
s t e a d o f tw o , p r o v i d i n g t h e c u s t o m a r y
e a sy a ccess o f c u sto m e rs , e lim in a tin g in ­
te r f e r e n c e w ith th e o p e r a tio n o f th e b a n k ­
i n g b u s i n e s s a n d a ls o a l l o w i n g t h e c o n ­
t r a c t o r s to p r o c e e d u n im p e d e d in th e b ig
w o rk o f e re c tin g th e g r e a t n e w s tr u c tu r e .
B o t h t i m e a n d m o n e y w ill b e s a v e d
th r o u g h th e le a s in g o f th e te m p o ra r y
h o m e a n d c o n v e n ie n c e o f c u s t o m e r s w ill
a ls o b e b e t t e r p r o v i d e d f o r , b a n k o ffic ia ls
s ta te d .
T h e f o r m e r L i g h t c o m p a n y o ffice is
e q u i p p e d w i t h tw o e x c e l l e n t v a u l t s , o n e
r u n n i n g t h r e e s t o r i e s in h e i g h t , f r o m
b a s e m e n t to s e c o n d flo o r, a n d t h e o t h e r
b e in g a la r g e m o d e r n v a u lt in th e b a s e ­
m e n t . I t is p r o b a b l e , h o w e v e r , t h a t t h e
b a n k w ill f in d i t n e c e s s a r y t o p r o v i d e
a d d itio n a l v a u lt sp a c e .
T h is a n d o th e r a lt e r a t io n s w ill b e c o m ­
p le te d b e fo r e th e firs t o f th e y e a r. T h e
b u i l d i n g o n W e s t T h i r d is v a c a n t a t t h e
p r e s e n t tim e , a llo w in g a lt e r a t io n s to b e ­
g in a t o n ce.
A r c h ite c ts a r e w o r k in g d a ily o n th e
p l a n s a n d s p e c i f i c a t i o n s o f t h e n e w $ 2 ,0 0 0 ,0 0 0 b u i l d i n g to b e e r e c t e d o n t h e s i t e
o f th e p r e s e n t b a n k , th e s o u th w e s t c o r­
n e r o f T h ir d a n d M a in s tr e e ts , a n d th e
fin a l p la n s w ill b e r e a d y f o r b id s b e fo r e
t h e e n d o f t h e y e a r , i t is e x p e c t e d .
A B e n e d ic t
L . Y . T a w n e y , o n e o f th e p o p u la r r e ­
c e iv in g te lle r s o f th e Io w a L o a n & T r u s t
C o m p a n y B a n k , D e s M o in e s , w a s r e c e n tly
m a r r ie d to N in a L . K e e r a n . M rs . T a w n e y
is a f o r m e r D r a k e g i r l a n d a m e m b e r o f
t h e n a t i o n a l m u s i c a l s o r o r i t y , S ig m a
A lp h a I o ta . T h e ir h q n e y m o o n w a s s p e n t
i n C h ic a g o .
P a r k e r Is P re s id e n t
S . L . P a r k e r is t h e n e w l y e l e c t e d p r e s i ­
d e n t o f t h e Y a le S a v i n g s B a n k a t Y a le ,
Io w a , s u c c e e d in g th e la te S. J a s k in s k y ,
d eceased.
N a tu r e n e v e r g iv e s e v e r y th in g a t o n ce.
•— J o h n s o n .


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Federal Reserve Bank of St. Louis

O c to b e r,

1926

T IL E

N O E T II W E 8 T E E N

E A N K E U

H a v e a Son
M r. a n d M rs. H o w a rd E . J a c k s o n a re
re jo ic in g o v e r th e a r r iv a l o f a so n , R o b e rt
H ig h J a c k s o n , S u n d a y , S e p te m b e r 12,
1 9 2 6 . M r . J a c k s o n is v ic e p r e s i d e n t o f
th e F a r m e r s S ta te B a n k , P a to n , Io w a .

AMERICAN

The
F a d ì id es

P ro u d F a th e r
R . M . M e s s e rs c h m id t, c a s h ie r o f th e
U n iv e r s ity S ta t e B a n k , D es M o in e s, Io w a ,
a n d M rs . M e s s e rs c h m id t, a r e th e p ro u d
p a r e n ts o f a so n b o rn r e c e n tly a t th e Io w a
C o n g re g a tio n a l H o s p ita l.
H e has been
n a m e d R o y W e n d a l l , a n d w h ile h i s d a d
s a y s t h e y o u n g s t e r ’s la s t, n a m e w i l l u n ­
d o u b t e d l y p r o v e a h a n d i c a p t o h im , t h e r e
is a g o o d c h a n c e , o n a c c o u n t o f h i s y o u t h ,
to c o m p l e t e l y o u t g r o w i t .

and

d ep artm en ts

COMMERCIAL &
SAVINGS B A N K
g/*

d ev elo p ed ,

D A V E N P O R T , IO W A

the ex p erien ce and the b a n k ­
in g p restig e a cq u ired b y the
“ A m erican
C om m ercial
and
S avin gs” in over 57 years of
service to Iow a in terests, b e n e ­
fit n ot o n ly th is in stitu tio n , but
also th ose hanks and b an k ers
w h o carry th eir D aven p ort ac­
cou n ts w ith it.

I o w a B u s i n e s s G a in s
A g r e a t im p ro v e m e n t in th e c o n d itio n
o f b a n k in g a n d a ll o th e r b u s in e s s h a s
b e e n e x p e rie n c e d in Io w a d u r in g th e la s t
y e a r , a n d e s p e c ia lly in th e la s t f o u r o r
fiv e m o n t h s , d e c l a r e d L . A . A n d r e w , s t a t e
s u p e r in te n d e n t o f b a n k in g f o r Io w a , in
a n a d d r e s s b e fo r e th e O ttu m w a C re d it
M e n ’s A s s o c i a t i o n a t H o t e l O t t u m w a r e ­
c e n tly .
M r. A n d re w s tre s s e d th e f a c t
t h a t I o w a is n o w m u c h b e t t e r o ff t h a n a
n u m b e r o f e rro n e o u s p u b lis h e d r e p o r ts
w o u ld i n d i c a t e , a n d t h a t w i t h t h e h a r ­
v e s tin g th is f a ll o f a n o rm a l c o rn c ro p
t h e s t a t e w ill e n j o y a p r o s p e r i t y t h a t is
r ig h tly h e rs.
H e e x p re s s e d a f a i t h in th e lo y a lty o f
I o w a p e o p l e i n t h e i r w i l l i n g n e s s to r e ­
s p o n d to c o rr e c tiv e b u s in e s s p ro c e d u re ,
c r e d itin g to th is f a c t th e r e m a r k a b le s t a ­
b i l i t y o f a ll I o w a b u s i n e s s .
W h ile M r. A n d re w w a s s p e a k in g d i­
r e c tly to a g ro u p o f b a n k e r s a n d m e n w h o
h a n d le a ll lin e s o f m e r c h a n d is e c re d its ,
h is a n a y l s i s o f b u s i n e s s m e t h o d s i n v o g u e
t o d a y is o f v i t a l i n t e r e s t t o t h e i n d i v i d ­
u a l. I n s t a l l m e n t b u y i n g a n d u n w i s e l u x ­
u r y b u y in g w e re c h a ra c te riz e d as a g r e a t
m e n a c e to b u s i n e s s s u c c e s s .
H e ex­
p la in e d
th a t
in s ta llm e n t b u y in g h a s
re a c h e d su c h p r o p o r tio n s t h a t th e a v e r ­
a g e m a n h a s , th r o u g h h is in s ta llm e n t c o n ­
t r a c t s , m o r t g a g e d h i s f u t u r e in c o m e f o r a
p e r i o d o f f r o m fiv e to f i f t e e n y e a r s . M r .
A n d re w s a id t h a t th e g r a n tin g o f a n u n ­
w is e e x t e n s i o n o f c r e d i t t o a n i n d i v i d u a l
o r a b u s i n e s s f irm is n o t a k i n d n e s s t o
th e o n e w h o re c e iv e s th e c re d it. H e to o k
in to c a r e f u l a c c o u n t th e h ig h ly c h a n g e d
s t a n d a r d o f l i v i n g s e e n in r e c e n t y e a r s ,
th o u g h , w ith a ll th is , h e a p p e a le d f o r a
c o n c e rte d e ffo rt to w a r d th e m o s t c a r e f u l
in b u s in e s s m a n a g e m e n t.
W . S . M u n g e r, p r e s id e n t o f th e O t­
t u m w a C r e d i t M e n ’s A s s o c i a t i o n , p r e ­
s id e d a t th e d in n e r m e e tin g , p r e s e n te d
M r. A n d re w a n d le d a g e n e r a l d is c u s s io n
o n c r e d it m e th o d s.
T h e C itiz e n s N a tio n a l b a n k o f S tr e e te r
h a s ta k e n o v e r th e F i r s t N a tio n a l b a n k
o f t h a t c ity .
C h a r l e s W . S p a u l d i n g is
p r e s id e n t o f th e C itiz e n s N a tio n a l.


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Federal Reserve Bank of St. Louis

vs

The spirit of friendliness
which prevails through­
out the First National or­
ganization is the same
now as it was sixty-three
years ago, when the bank
was established. Today we
are better equipped than
ever before to give Iowa
banks our friendly—an ef­
ficient—cooperation.
W e W ill C o n sid e r It
G en u in e P le a su re to
S erv e Yon

O FFIC ER S
A .F .0 A W 5 0 N ,
JOE R . L A N E ,
IRVIN J.C R E E N ,
C .F .S C H M ID T ,
P.A.TORNQUIST,

P re s id e n t
V.PrP/-idcnl
C a ^ h io tAsst Cashier
A » f Cashier

a

FIRST
ONALBANK.
D A V E N PO R T , IO W A .

92

THE

NORTHWESTERN

BANKER

October, 1926
Convention D elegates

S e c r e ta r y F r a n k W a r n e r o f th e Io w a
B a n k e r s A s s o c i a t i o n , a s t h i s g o e s to
p re s s , a n n o u n c e s t h a t Io w a h a s a w o rth y
d e le g a tio n s c h e d u le d to m a k e th e a n n u a l
c o n v e n t i o n p i l g r i m a g e o f t h e A . B . A .,
to b e h e l d t h i s y e a r i n L o s A n g e le s . T w o
s p e c i a l c a r s w e r e t o l e a v e D e s M o in e s
th e m o r n in g o f W e d n e s d a y , S e p te m b e r
2 9 th , m a k i n g c o n n e c t i o n s w i t h t h e C h i ­
c a g o t r a i n a t A m e s . T h e C h ic a g o t r a i n
w a s to r u n in s ix s e c tio n s .
E n te rta in ­
m e n t w a s to b e p r o v id e d f o r th e d e le ­
g a te s
at
O m aha,
D e n v e r,
C o lo r a d o
S p r i n g s , G le n w o o d S p r i n g s , a n d S a l t
L a k e C it y , t h e e n t i r e t r i p t o t a k e fiv e
days.

P ea rso n H otel
c
1

On the near North Side
t

W

ITH an environment and equipment not ex­
celled by any other Chicago hotel. The P ear­
son may be your first and only consideration as a
Chicago stopping-place. The opera, the Chicago
Symphony Concerts at Orchestra Hall, the theatres,
the stores and sm art shops, the business and financial
districts are all within pleasant walking distance,
yet restfully distant when quiet is wanted.

o

{(
- i i

The Pearson offers rooms and two-room suites, all
with private bath, th at are larger and more com­
pletely and modernly furnished than may be found
in any Loop hotel at moderate prices. Food
The P ea rson is a block
east of the intersection of
of notably fine quality, a la carte or in club
Pea rson S treet and N orth
M ichigan Bouleva rd. R ates
breakfasts, special luncheons and table d ’hote
for one person are from
dinners, is served at reasonable cost. A fire­
$3.50 to $5.00 a day; fo r
two from $5.00 to $7.00;
proof, 300-car garage is close by if you prefer
two-room suites $10.00 to
to bring your own motor.
$14.00.
Send

today

for

i l l u s t r a t e d

folder

B e lo w a r e l i s t e d t h e I o w a d e l e g a t e s :
A lto n — M r. J. N . K u h l, P r e s id e n t, A lto n
S a v in g s B a n k .
A n ita — M r. an d M rs. H a rry C. F a u lk n e r ,
C ashier, T he A n ita B a n k .
B u r lin g to n — M r. an d M rs. G eorge S w iler,
P r e sid e n t, B u r lin g to n S a v in g s B a n k .
C edar R a p id s— M r. a n d M rs. C h a rles C.
K u n in g , C ashier, C edar R a p id s N a t io n a l
B a n k ; M r. an d M rs. J. M. D in w id d ie, P r e s i­
d en t, C edar R a p id s S a v in g s B a n k & T ru st
Co.; M r. an d M rs. F . C. W elch , C ash ier,
P e o p le s S a v in g s B a n k .
C h arles C ity — M r. an d M rs. M . W . E llis ,
P r e sid e n t, S e c u r ity T ru st & S a v in g s B a n k .
C larion— M rs. C lifford Crowe ( N e e N oren e W o h le n b e r g ).
C lin to n — M r. a n d M rs. A . C. S m ith , P r e s i­
d en t, I o w a B a n k e r s A s s o c ia tio n , P r e sid e n t,
C ity N a t io n a l B a n k .
C ou n cil B lu ffs— M r. an d M rs. C. F.
S p oon er, C ash ier, F ir s t N a t io n a l B a n k .
D a v e n p o r t— M r. an d M rs. R a y N y e m a ster, V ic e P r e sid e n t, A m e r ic a n C om m ercial
& S a v in g s B a n k , m em b er o f S ta t e B a n k in g
B o a r d ); M r. an d M rs. F . B . Y e tte r , V ic e
P resid en t, Iow a N a tio n a l B an k .
D es M oin es— Mr. and M rs. L . A . A n ­
drew,
S ta te
S u p erin ten d en t
of
B a n k s,
S ta te H o u se;
Mr. and M rs. J oh n H.
H ogan , P resid en t, D es M oin es N a tio n a l
B a n k (m em b er S ta t e B a n k in g B o a r d ) ; M r.
J . H . S h arp e, M a n a g er, D e s M o in es C lea r­
in g H o u se; Mr. F ra n k S h arp e; Mr. and
M rs. H e r b e r t C. M e tc a lf, M a n a g er, Y ounk ers D r y G oods S to r e ; M r. a n d M rs. G rant
M cP h errin , P r e sid e n t, C en tra l S ta t e B a n k
(P r e s id e n t, S ta t e B a n k D iv is io n , A m erica n
B a n k e r s A s s o c i a t i o n ) ; M r. a n d M rs. Carl
M esm er, A s s is t a n t C ash ier, P e o p le s S a v in g s
B a n k ; M r. an d M rs. C. B . H e x t e ll, V ic e
P r e sid e n t, I o w a T ru st & S a v in g s B a n k ;
M r. C lifford D e P u y , P u b lis h e r , N o rth -

FIRST N A T IO N A L BANK,
D IR E C T O R S

B. F SWISHER
Pickett, Swisher & Farwell
R. J. HOXIE
Secretary Waterloo Fruit A
Commission Co.
A. M. PLACE
Vice President
E. E. PEEK
Vice President Waterloo Bldg.
& Loan Association.
H. W. GROUT
Real Estate
C. A. MARSH
President
fy ? aT'¿f>7’cj<3 / â S S


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

T H E First National Bank of Waterloo i«
equipptd to give you the highest degree of
SERVICE, and do it promptly and efficiently
at all times. Fifty-eight years of steady con­
servative growth enables this bank to extend
such service.
O F F IC E R S

C. A. MARSH, President
A. M. PLACE, Vice President
W ILL A. LANE. Cashier
P. W. EIGHMEV, Assistant Cashier
O. L. MORRIS. Assistant Cashier
Total

Resources Over $ 2 .9 0 0 .0 0 0 .0 0 .

^Waterloo, Itowa
D IR E C T O R S

W. W. MARSH
#
President Iowa Dairy Separa­
tor Co., President Associated
Mfg. Co.
J. T. SULLIVAN
Lawyer.
J. O. TRUMBAUER
Vice President Farmers Loan
and Trust Co.
H. A. MAINE
President H. A. Mains A Co.
WILL A. LANE
Cashier

October, 1926

THE

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

w e s te r n B a n k e r ; M r. an d M rs. R. A . C raw ­
fo rd , P r e s id e n t, V a lle y N a t io n a l B a n k .
F o r t D o d g e — M r. A . J . M oe, A s s is t a n t
C ash ier, S e c u r ity T r u st an d S a v in g s B a n k .
G rand J u n c tio n — M r. an d M rs. T. B.
W a tts , P r e s id e n t, C ity B a n k .
H o lste in -—M r. an d M rs. C. J . W oh len b erg , P r e s id e n t, H o ls te in S a v in g s B a n k
(m em b er S ta t e B a n k in g B o a r d ); M rs. E .
G ordon F o x , M r. an d M rs. C. J . W oh len b erg ( N e e Ir m a W o h le n b e r g ).
M a n ly — M r. C. S. B y e , C ash ier, M a n ly .
S ta t e B a n k .
M a so n C ity — M r. an d M rs. W . G. C. B a g ley, V ice P resid en t, F ir s t N a tio n a l B ank.
M o n tezu m a — M r. an d M rs. E . D. B a y burn, P r e s id e n t, F ir s t N a t io n a l B a n k .
S p en cer— M r. an d M rs. J . H . M cC ord,
P r e sid e n t, C itiz e n s N a t io n a l B a n k .
S to rm L a k e — M r. an d M rs. G eorge S ch aller, P r e s id e n t, C itiz e n s F ir s t N a t io n a l
B a n k ; M iss C atherine S ch aller, C itizen s
F ir s t N a t io n a l B a n k .
W a te r lo o — M r. an d M rs. F . W . M iller,
P r e s id e n t,
C om m ercial
N a t io n a l
Bank
(m em b er S ta t e B a n k in g B o a r d ); M r. and
M rs. Ir a R ed am ar, P r e s id e n t, P io n e e r N a ­
t io n a l B a n k ; M r. a n d M rs. W . A . L a n e,
C a sh ier, F ir s t N a t io n a l B a n k ; M r. and
M rs. E . H . W y a n t, S e c r e ta r y , C om m ercial
N a t io n a l C o m p an y; M iss L e n n a P r a th e r ,
C o m m ercia l N a t io n a l C om p any.
W e b ste r C ity — M r. a n d M rs. B . E . J o n e s,
P r e sid e n t, F a rm er s N a t io n a l B a n k .

93

B A N K E R

Safe Investments
Demand
The Special Training
Experience and Judgment
That Our Record
Proves W e Possess
“All Your Money—All The Tim e—On T im e"

N ow in M ontana
Gr. S . P i t t s , f o r m e r l y v ic e p r e s i d e n t o f
th e N o rth w e s te rn B a n k o f Ir e to n , Io w a ,
is n o w i n M o n t a n a , a n d is e x a m i n e r in
c h a r g e a t t h e c lo s e d B r o t h e r h o o d - L a b o r
B a n k o f W h ite fis h . H e w r ite s t h a t th is
is a fin e l i t t l e to w n , n e a r t h e G l a c i e r N a ­
tio n a l P a r k , s u r r o u n d e d b y c o u n tle s s
tr o u t- f ille d s tr e a m s a n d la k e s , a ll k in d s
o f h u n tin g , in th e m id s t o f th e m o u n ta in s .
S u c h th in g s , h e a d m its , h a v e a v e ry s tr o n g
a p p e a l f o r th e m a n w h o lik e s th e g r e a t
o u td o o r s .

I A t y o u r service
in Eastern Iowa

N o Summer Slump
A y e a r a g o a t th is tim e , th e M u tu a l
T r u s t L i f e o f C h ic a g o a n n o u n c e d a 2 7 .4
p e r c e n t g a in in n e w b u s in e s s f o r th e
m o n th o f A u g u s t, 1925. I t w a s th e n t h a t
th e m e m b e rs o f its a g e n c y d e p a r tm e n t
c o n c lu d e d t h a t a s u m m e r s lu m p w a s n o t
o n e o f t h e n e c e s s a r y e v il s w i t h w h i c h w e
m u s t c o n te n d , b u t th a t b y p r o p e r p la n ­
n i n g a n d s a l e s s t i m u l a t i o n , t h i s o ld id e a
m u s t g iv e w a y t o h a r d w o r k a n d c o n c e n ­
t r a t e d e f f o r t.
W it h th i s in m in d c a m e th e d e v e lo p ­
m e n t o f a s u m m e r sa le s s tim u la tio n c a m ­
p a ig n f o r J u l y a n d A u g u s t th is y e a r.
T h e c a m p a ig n s t a r te d o u t w ith a “ b a n g ”
a n d g a in e d m o m e n tu m th r o u g h to th e
f in is h . J u l y b r o u g h t a n a c t u a l i n c r e a s e
o f 2 2 .2 p e r c e n t , a n d , i n A u g u s t , p r o d u c ­
tio n c o n tin u o u s ly in c r e a s e d u n ti l th e
f i n a l r e c o r d s w e r e c o m p l e te .
T h e to ta l
i n c r e a s e d u r i n g t h e m o n t h w a s 3 5 .7 p e r
c e n t.
M u ri F . S w a rt h a s b een a p p o in te d
a s s is ta n t c a s h ie r o f th e F a r m e r s S ta te
b a n k o f P a g e su c c e e d in g L y d ia L . J o h n ­
so n re s ig n e d .


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

ni i li n in g

q iin iiiiiiiu in in iiin in n u m

PEOPLES
TRUST &

and

SAVINGS

W estern Illinois
I

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i

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BANK

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eoples irust 45aviitósDank
C L IN T O N , IO W A..

„ „

R e m e m b e r i t t h i s w a y '- “PEO PLES T R U S T
T H E S T A T E C E N T R A L SAVINGS BANK
KEOKUK, IOWA
Capital .....................................................................................................$ 200,000.00
Surplus and Undivided Profits ........................................................... 329,574.16
Deposits .................................................................................................. 2,803,196.77
W I L L I A M L O G A N , P r e s id e n t
L. J. M O N T G O M E R Y , V ic e P r e s id e n t
A S A P H B U C K . V ic e P r e s id e n t
C. J. B O D E , C a s h ie r
A L V I N K R A F T , A s s is t a n t C a s h ie r
L . J, W O L F , A s s is t a n t C a s h ie r

::

ACCOUNTS OF BANKS AND

BANKERS

INVITED

::

94

T II E

N (3 R T H AV E S T E R N

BANKER

October, 1926
E lected Cashier

W e Were 70 Years Old

C

On the thirteenth Tl
day of July, 1926jj

M eet at Le Mars

In this, our seventy-first year, our
hearts are full of gratitude for the
good will accorded us and for our
host of friends.
Our banking house is adequate—
working capital and surplus are ours
—a loyal organization we have—but
our greatest asset—a priceless pos­
session—is good will.
We gratefully acknowledge the
large part our friends have contrib­
uted to our progress and success dur­
ing the past three score years and
ten.
C a p i t a l ------------------------------ $ 2 0 0 ,0 0 0 .0 0
S u r p l u s ------------------------------ 1 0 0 ,0 0 0 .0 0
P r o f i t s ___________________

“A n


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Federal Reserve Bank of St. Louis

T h e Y o rk to w n S a v in g s B a n k , Y o rk to w n , I o w a , h a s a n e w m a n a g e r i n t h e
p e rs o n o f G eo. E . W o lle n h a u p t, w h o h a s
r e c e n tly b eco m e a s s o c ia te d w ith t h a t in ­
s titu tio n .
M r . A V o lle n h a u p t f o r m e r l y
liv e d a t C u m b e rla n d , Io w a . H e h a s h a d
tw e lv e y e a r s o f e x p e rie n c e in th e b a n k ­
in g b u s in e s s , a n d c o m es v e r y h ig h ly
re c o m m e n d e d .

1 2 6 ,0 0 0 .0 0

H on or Roll B a n k "

T h e a n n u a l m e e tin g o f th e P ly m o u th
C o u n ty B a n k e r s A s s o c ia tio n w a s h e ld in
L e M a r s r e c e n t l y a t C o lu m b ia h a l l . R . B .
D a lto n , o f th e F i r s t N a tio n a l o f L e M a rs,
p re s id e d , a n d th e m e e tin g w a s a tte n d e d
b y 3 5 b a n k e r s f r o m v a r i o u s to w n s o f t h e
c o u n ty .
O ffic e rs w e r e e l e c t e d f o r t h e e n s u i n g
y e a r, w ith H . S h o u lb e rg o f A k ro n , p r e s i­
d e n t.
AV. G . S i e v e r s o f R e m s e n w a s
e le c te d tr e a s u r e r .
T h e a s s o c ia tio n d o n a te d $100 to w a rd
t h e b o y s a n d g i r l s ’ f a r m b u r e a u c lu b s , t o
b e u s e d a s p riz e s in th e e x h ib itio n w o rk
a t th e f a ir .
T h e a s s o c i a t i o n a ls o v o t e d
to m a k e s e rv ic e c h a rg e s in th e f u t u r e ,
t h e c h a r g e s t o b e c o m e e f f e c ti v e t h e f i r s t
o f th e n e w y e a r.

Is A ppointed S p ecial A gen t
R o b e rt L in d s a y , f o r m e rly a d ru g g is t,
h a s b e e n a p p o in te d s p e c ia l a g e n t f o r th e
E q u i t a b l e o f N e w Y o r k a t C o u n c il B lu f f s .
O ffices w ill b e i n t h e B e n n e t t b u i l d i n g .

P reven tin g D ayligh t R obberies
I n a re c e n t le tte r , S a m u e l N e w b e rg e r,
m e m b e r o f th e A m e ric a n I n s t i t u t e o f
A c c o u n ta n ts , a n d th e s e n io r m e m b e r o f
S am u el N e w b e rg e r & C o m p an y , o f N ew
Y o rk C ity , s a y s :
“ I n th e s e d a y s o f p a y r o l l h o l d u p s a n d
d a y lig h t ro b b e r ie s a li tt le c a u tio n a n d
c o m m o n se n s e o n th e p a r t o f b u s in e s s
m e n w ill s a v e th e m t h e i r m o n e y , a s w e ll
a s t h e liv e s o f t r u s t e d e m p l o y e e s o t h e r ­
w is e p l a c e d i n j e o p a r d y .
“ 1 . I f y o u r e c e i v e o r c o ll e c t l o t s o f c a s h
y o u s h o u ld m a k e s e v e r a l b a n k d e p o s its
d a ily . H a v e y o u r c o lle c to rs d e p o s it th e ir
m o n e y c o lle c tio n s in y o u r b a n k im m e ­
d ia te ly o n th e ir r e t u r n fr o m th e ir ro u te s .
R o b b e rs a n d h o ld u p m e n a r e n o t te m p te d
b y s m a ll a m o u n ts .
T h is w ill s a v e y o u
f r o m a b ig m o n e y lo s s i n c a s e o f h o ld u p .
A n d i t m a y e v e n s a v e y o u r lif e o r th e
li v e s o f y o u r e m p l o y e e s , s i n c e t h e r e ­
s i s t a n c e o f f e r e d t h e h o l d u p m e n is u s u ­
a l l y i n p r o p o r t i o n t o t h e s iz e o f t h e c a s h
in h a n d .
“2. D o n ’t le a v e m o n e y in y o u r s a f e
o v e r n i g h t . I t is t h e o n ly t h i n g t h a t a t ­
tr a c ts b u rg la rs .
T h is w ill s a v e y o u a
la r g e p a r t o f y o u r b u r g la r y in s u ra n c e
c o s t.
“ 3. P a y y o u r w o r k e r s b y c h e c k .
A
c lie n t o f m in e , a la r g e m a n u f a c tu r e r , w h o
p a y s h is h e lp b y c h e c k , h a s a r r a n g e d w ith
a n e a r - b y b a n k to c a s h h is e m p l o y e e s ’

October, 1926

THE

c h e c k s . T h e e m p lo y e e s ( o n p a y r o l l d a y )
le a v e t h e f a c t o r y o n e - h a l f h o u r b e f o r e
t h e u s u a l q u i t t i n g t i m e t o c a ll a t t h e b a n k
to c a s h th e i r c h e c k s.
“ O n e - h a l f h o u r ’s t i m e o f a t e l l e r a n d
o v e r s e v e r a l h u n d r e d e m p lo y e e s’ c h e c k s
a re cash ed .
O f co u rse a fa c to ry re p r e ­
s e n t a t i v e is t h e r e t o i d e n t i f y t h e e m ­
p lo y e e s .
“ T h e e m p lo y e r n e e d n o t w o rry a b o u t
a rm e d g u a r d s o r h o ld -u p s o r h o ld -u p in ­
s u r a n c e . T h e b a n k is s a v e d t h e t i m e a n d
e x p e n s e o f m e s s e n g e r s , a r m o r e d c a r , e tc .
“ I t is c r i m i n a l n e g l i g e n c e o n t h e e m ­
p l o y e r ’s p a r t t o le a v e l a r g e s u m s o f c a s h
in h is p l a c e o f b u s i n e s s .
“ A ll p a y m e n ts o f o n e d o lla r o r m o re in
a m o u n t s h o u ld b e b y ch e c k .
“ I f th e b u s in e s s m e n o f th e c o m m u n ity
u s e d s o m e c o m m o n s e n s e t h e r e w o u ld b e
f e w e r h o l d - u p s a n d a l o t o f m o n e y w o u ld
b e s a v e d .”

N O ß T H W B S T E li N

95

B AN K E R

The F A S C I N A T I O N
of BU SIN ESS
T h ere is so m eth in g fascin atin g about b u sin ess. W e take a p erso n a l in terest
in the su ccess of each of ou r clien ts. A n d our w id e exp erien ce in b u sin ess
m atters is th e ir’s to draw u p on .
T h at’s w hy clien ts find here a sp irit of h elp fu ln e ss and co o p era tio n w h ich
is as v a lu a b le to them as the co m p lete fa c ilitie s w e have for h a n d lin g their
b an k in g tran saction s.
Y O U R A C C O U N T W IL L B E W ELCO M E

SECU RITY STATE BANK
KEOKUK

IOWA

“ W here B a n k in g Is a P icasure"

Form A. B. A. F oreign Travel
A ssociation
A t a r e c e n t m e e tin g s p o n s o re d b y th e
F o re ig n T ra v e l B u re a u o f th e F i r s t N a ­
t i o n a l B a n k o f C h ic a g o , a n a s s o c i a t i o n
k n o w n a s th e “ A m e ric a n B a n k e rs A sso ­
c ia tio n o f T ra v e l B u r e a u s ,” w a s fo rm e d ,
w i t h t h e f o l l o w i n g o ff ic e rs : P r e s i d e n t , C .
F . S w e e t, v ic e p r e s i d e n t , t h e O ld N a ­
t i o n a l B a n k o f G r a n d R a p i d s ; v ic e p r e s i ­
d e n t, W m . J . F r a n k , m a n a g e r th e fo r e ig n
d e p a rtm e n t o f th e F ir s t N a tio n a l B a n k
o f P itts b u rg h ; s e c re ta ry -tre a s u re r, P . A .
K in n o c h , m a n a g e r f o r e ig n d e p a r tm e n t o f
th e M e r c a n tile T r u s t C o m p a n y o f S a n
F r a n c i s c o ; c h a ir m a n o f th e a d v is o ry
c o u n c il , A . H . P r i c e , m a n a g e r f o r e i g n
tr a v e l b u re a u , F i r s t N a tio n a l B a n k o f
C h ic a g o .
T h e n e w a s s o c ia tio n w ill h a v e f o r its
p u rp o s e th e p ro m o tio n o f th e g e n e ra l
u s e f u ln e s s o f b a n k tr a v e l b u re a u s , to se ­
c u re u n if o r m i ty o f a c tio n , to e s ta b lis h a
b u r e a u o f s e rv ic e f o r th e p u rp o s e o f o b ­
ta in in g a re c o rd o f th e e x p e rie n c e s o f its
m e m b e rs in o p e r a tin g th e ir o w n tr a v e l
b u re a u s, a n d fo r g e n e ra l ex ch an g e of
id e a s a l o n g t h a t li n e . A b o u t f o r t y b a n k s
fr o m a ll s e c tio n s o f th e c o u n tr y w e re
re p r e s e n te d a t th e o rg a n iz a tio n m e e tin g
h e l d i n C h ic a g o . F r o m I o w a , t h e I o w a
L o a n a n d T ru s t C o m p a n y B a n k o f D es
M o in e s , w a s r e p r e s e n t e d b y H . E . T o s o n ,
fo r e ig n d e p a r tm e n t m a n a g e r, th e S e c u ­
r i t y S a v in g s B a n k o f C e d a r R a p id s , b y
L . H . S tr a k a , f o r e ig n d e p a rtm e n t m a n ­
a g e r, a n d F r a n k F ilip , c a sh ie r.
A n y s t a t e o r n a t i o n a l b a n k o r a ff ili­
a te d in s t i t u t i o n in th e U n ite d S ta te s ,
t h a t is a d u l y a p p o i n t e d a g e n t o f t h e
s te a m s h ip lin e s o f th e S te a m s h ip C o n fe r­
e n c e , m a y b e c o m e a m e m b e r o f th e a s s o ­
c ia tio n b y p r e s e n tin g a p p lic a tio n f o r
m e m b e rs h ip a n d h a v in g i t fa v o r a b ly
a c t e d u p o n b y t h e e x e c u t i v e c o u n c il .
W o rd s a r e r a t h e r th e d ro w s y p a r t o f
th e p o e tr y ; im a g in a tio n th e life o f it.—
F e llth a m .


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

1926

1876

IF Y O U H A V E A N Y

BUSINESS IN

DUBUQUE
W h y not entrust
it to

The
N

a

C

o n s o l i d a t e d

t i o

n

a

l

B

a

n

\

whose unbroken record
of fifty years is a guau
anty of safe and satisface
tory service.

Consolidated National Bank
UNITED STATES DEPOSITORY

DUBUQUE, IOWA
J . K. D em ins'. P resid e n t
Geo. W. M yers, Vice P resid e n t
J a s . M„ B urch, Vice P re sid e n t

H erm an Eschen, S ecretary
Jos. W. M eyer, C ashier

96

THE

NORTHWESTERN

BANKER

October, 1926

W H A T T H E Y S A ID AT DETRO IT
(C o n tin u e d

Fortifying the Future
(.L ittle Talks on Tiling, No. 21)
ARM profits are earned cial records show that this
year after year by men who cycle of heavy precipitation is
fortify themselves against prob­ now due. The farm er who has
able future difficulties. One of his clay soils all thoroughly tilethe most im portant contin­ drained in advance will reap
gencies against which they must generous rewards from his fore­
thought of getting abundant
guard is the certainty of the re­ yields in spite of the wet sea­
turn of a series of years having sons—large yields when prices
abnormally heavy rainfall. Offi- are high.

F

Tile Drainage Fortifies the Future
by Insuring Weather Independence

Mason City Brick and Tile Company
312 Denison Bldg.

C H A S. S H U L E R , P r e s id e n t
F R A N K B. Y E T T E R , V ice P re s .
W M . H . G EH R M A N N , V ice P re s .
L O U IS G . B E IN , C ash ier

Mason City, Iowa

“ The Genius
of
Real Service
Is
Sincere
Enthusiasm'

H E R M A N STA AK , A sst. C ash ie r

Iowa National Bank
Davenport, Iowa
KEEP Y O U R O F F IC E R S
in c lo se r to u c h w ith y o u r sav in g s an d c h ec k in g acc o u n ts b y th e use of o u r e x p e rt m a ilin g service.
O u r s p e c ia lty : D u p lic a tin g L e tte rs , A d d re ssin g , M atch in g , F o ld in g an d M ailing.
D E S M O IN E S D U P L IC A T IN G CO.
91 7 -9 1 9 W E S T GRAN D A V E .
D E S M O IN E S , IO W A


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Federal Reserve Bank of St. Louis

fro m

p a g e 31)

THE TREND OF TRUST
ADVERTISING
“ I t is n o t i m p o r t a n t t h a t th e a d v e r t i s i n g
c o v e r th e t e c h n i c a l d e t a i l s c o m p l e t e 'y , b u t
t h a t i t fin d t h e p o i n t o f c o n t a c t . ” T h a t is
th e w a y A . F . Y o u n g , v ic e p r e s i d e n t o f
t h e G u a r d i a n T r u s t c o m p a n y o f C le v e ­
l a n d , d e s c r ib e d t h e f o u n d a t i o n o f t r u s t
c o m p a n y a d v e r t i s i n g a t th e F . A . A . c o n ­
v e n ti o n .
H e c o n tin u e d :
“ I f t h i s b e t r u e — I b e lie v e y o u w ill a ll
a d m i t i t — th e m o s t i m p o r t a n t q u a l i t y to
g e t i n t o t r u s t a d v e r t i s i n g is n o t w h a t y o u
w a n t to te l l t h e p r o s p e c t b u t a n u n d e r ­
s t a n d i n g o f w h a t t h e p r o s p e c t w a n t s to
b e t o l d — a n d t h e t r u s t o fficer, o v e rw h e lm e d
w ith h is m a n i f o l d p r o b l e m s , u s u a l l y th e
b u s ie s t m a n in th e b a n k , e v e ry d a y h a n d ­
l i n g m u s t y d o c u m e n ts t h a t m a k e u p e s ­
t a t e s , is t h e m a n f r e q u e n t l y f u r t h e s t
a w a y f r o m th e p r o s p e c t w ho k n o w s n o th ­
i n g o f e s t a te s , t r u s t s , w ills a n d i n v e s t ­
m e n ts .
“ O n th e o th e r h a n d y o u m ig h t th in k —
a n d i n m a n y c o n c e r n s t h e i m p r e s s io n
s e e m s to p r e v a i l — t h a t th e b e s t m a n to
h a n d le a d v e r t i s i n g w o u ld b e a t y p i c a l c o n ­
su m e r.
T h is is n o t t r u e a n y m o r e t h a n
i t is t r u e t h a t th e t e c h n i c a ll y l e t t e r - p e r f e c t
t r u s t o fficer is t h e m a n b e s t e q u i p p e d to
i n t e r p r e t h is o w n d e p a r t m e n t to t h e p u b ­
lic . A s k t h e a v e r a g e p e r s o n to p u t d o w n
in w r i t i n g w h a t h e b e lie v e s to b e th e s t o r y
o f a n in s u ra n c e tr u s t c a m p a ig n o r o f
p r o p e r t y m a n a g e m e n t a n d h e w ill f lo u n ­
d e r.
H e is a s m u c h u n a b l e to p a i n t a
w o r d ja ic tu r e a s is th e a c t u a l p e r s o n w h o m
th e w r i t e r o f g e n iu s e n d o w s w ith p e r ­
p e t u a l f a m e a s th e h e r o o f M a r k T w a i n ’s
H u c k l e b e r r y F i n n o r S h a k e s p e a r e ’s H a m ­
le t. T o liv e t h e p a r t a n d to w r i t e d o w n
t h e p a r t a r e tw o e n t i r e l y d i f f e r e n t th i n g s .
“ I n d e e d o u r t r u s t a d v e r t i s i n g w ill n o t
fin d t h e p o i n t o f c o n t a c t a n d h a v e t h a t
p u l l i n g p o w e r w h ic h t o d a y c h a r a c t e r i z e s
th e o u t s t a n d i n g a d v e r t i s e m e n t s o f m e r ­
c h a n d is e u n le s s t h e c r e a t o r o f t h a t a d v e r ­
t i s i n g h a s t h e n o v e l i s t ’s r a r e g e n iu s o f
u n d e r s t a n d i n g t h e w a n ts , a m b i t i o n s a n d
a c t u a t i n g m o tiv e s o f t h e c o m m o n m a n o r
ty p ic a l c o n su m e r. H e m u s t be f a r e n o u g h
a w a y f r o m t h e r e n d e r i n g o f t h e s e r v ic e
i t s e l f to b e a b le to p i c k o u t t h e n e w s
p o i n t s a n d f a c t o r s o f a p p e a l in t r u s t s e r v ­
ic e ; b y p i c t u r e , b y li n e s o f c o ld t y p e c o m ­
p e t i n g f o r a tte n tio n » in th e c r o w d e d p a g e s
o f th e n e w s p a p e r s , h e m u s t b e a b ’e o n th e
li n e s a n d b e tw e e n t h e m t o te l l a n d im p l y
s o m e th i n g so u n u s u a l a n d so d r a m a t i c a s
t o e n g a g e t h e a t t e n t i o n ; s o m e th i n g so c lo se
t o t h e r e a d e r ’s o w n w is h e s a n d d a y d r e a m s
a s to g r i p t h e i n t e r e s t ; s o m e th i n g so
b r i e f a n d to t h e p o i n t a s t o s u g g e s t a c ti o n
a l o n g t h e li n e s o f t h e l e a s t p s y c h o lo g ic a l
r e s i s t a n c e le a d i n g t o w a r d a s a le .

October, 1926

THE

NORTHWESTERN

BANKER

97

Public confidence
over fifty years
—and still growing
as we serve.
C om bined R esou rces O ve r
$ 2 8 ,0 0 0 , 000.00
%
\
V

OFFICERS
H o m er A. M iller
C lyde E . B re n to n
H . T. B la c k b u rn
Geo. E . P e a rs a ll
A lb e rt J . R o b ertso n
J . R. C apps
R. L. C hase, J r .
Ja m e s F . H a r t
J . B u rso n
S h erm an W . F ow ler

P r e s id e n t
V ice P re s .
V ice P re s .
V ice P re s .
V ice P re s .
C ash ie r
A sst. C ash.
A sst. C ash.
A sst. C ash.
A sst. C ash.

DIRECTORS
Geo. N. A yres
H . T . B la c k b u rn
C lyde E. B re n to n
H o w ard J . C lark
G a rd n e r Cowles
J . H . C ow nie
E. C. F in k b in e
J . B. G reen
W m. C. H a rb a c h

l

F . H . L u th e
M. M andelbaum
H o m er A. M iller
Geo. E . P e a rs a ll
R alp h H . P lum b
M. S hloss
E . R . S to tts
O. H . T hom pson
G. M. V an E ver*

Io w a National bank
D es Moines Savings Bank and Trust Company

t


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

Iowa's L a te st Bank - D e s M o in e s - Sixth and W alnut

98

THE

NORTHWESTERN

BANKER

October, 1926

“ROLL OF HONOR” BANKS
I t is an honor to be listed am ong the H onor Roll B anks. I t indicates th a t the bank has Surplus and Undivided
Profits equal to or greater th an its capital.
Such distinction is accorded to the banks listed on this page. By careful m anagem ent and sound banking they
have achieved this enviable position.
These banks will be especially glad to handle
any collections, special credit reports or other
business in their com m unities which you may
entrust to them .
Correspondence is invited.
IOWA

C apital

B ank

Town

D avenport
F t. M adison
Lake Mills
Little Rock

Union Sav. Bk. &
Tr. Co.
Lee C ounty Sav.
Farm ers S tate
F irst N ational

Surplus
and
Profits

$1,250,000 $1,250,000
56.000
50.000
38.000
25.000
26.000
25.000

300 Rooms—250 with Bath

HOTEL MONTROSE
W

Rates
$2.00 to $4.00

M onticello
Soldier
W allingford
W aterloo

B ank

M onticello S tate
Soldier Val. Sav.
Farm ers Sav.
Pioneer N ational

C apital

Surplus
and
Profits

$ 200,000 $ 225,000
28,991
20,000
35,000
15,000
2 1 0 ,0 0 0
200,000

Bureau o f
Canadian
In form ation

IN CEDAR R A P ID S

Fireproof

Town

■â

The C anadian Pacific R ailw ay through its B ureau of
C anadian In fo rm atio n , w ill fu rn ish you w ith th e latest
reliable info rm atio n on every phase of in d u strial and
a g ricu ltu ral developm ent in C anada. In our R eference
L ib rary a t M ontreal is complete d a ta on n a tu ra l re­
sources, clim ate, labor, tra n sp o rta tio n , business open­
ings, etc. A dditio n al d a ta is co n stan tly being added.

Developm ent Branch

I

D IN IN G RO OM S
and
CO FFEE ¡SHOP

I f you a re in te re s te d in th e m in in g w e a lth a n d in d u s try of
C anada or in th e dev elo p m en t or s u p p ly of in d u s tria l ra w m a ­
te ria ls a v a ila b le fro m re so u rc e s along_ th e C a n a d ia n P acific
R ailw ay , you a re in v ite d to c o n su lt th is B ra n ch . An e x p e rt
s taff is m a in ta in e d to in v e stig a te in fo rm a tio n re la tiv e to th ese
re so u rc e s a nd exam ine d e p o sits in th e field. P r a c tic a l in f o r ­
m a tio n is a v a ila b le a s to sp ec ia l o p p o rtu n itie s fo r developm ent,
use of b y -p ro d u c ts a n d m a rk e ts , in d u s tria l crops, p ro sp e c tin g
a n d m ining.
"A s k the Canadian P a cific about Canada 4 is not a mere
advertising slogan. I t is an intim ation tff service — w ith­
out charge or obligation— that the inform ation is available
and w ill be prom ptly forthcom ing to those who desire it.

Fp p l e y H o t e l s
^ COMPANY ^
i


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Federal Reserve Bank of St. Louis

CANADIAN PACIFIC RAILWAY CO.
Department of Colonization and Development
J. S. DENNIS
Chief Commissioner

Windsor Station
Montreal, Can.

THE

October, 1926

NORTHWESTERN

99

BANKER

For Your Des Moines B usinessF rie n d ly contacts an d th o ro u g h fa m ilia rity w ith local
c o n d itio n s m ak e it possible fo r th e Des M oines N a tio n al
B an k to serve th e needs of Iow a b a n k ers an d bu sin ess m en
in every detail.
T h e Des M oines N a tio n al h as grow n w ith Des M oines
and Iow a, an d th ro u g h th e forty-five years of its h a n k in g
experience h as becom e closely associated w ith th e com ­
m ercial, in d u s tria l, an d fin an cial activ ities of th e C apital
City.
T h is in tim a te co n tact en ab les its officers to efficiently
dispose of difficult com m issions w ith u n u s u a l success.
L et a frie n d ly an d a le rt o rg a n iz atio n h a n d le y o u r Des
M oines account.

DesMoinesNational Bank
C a p i t a l *1,000.000

6 th D V a ln u t S ts
t7 /i e


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Federal Reserve Bank of St. Louis

Tu' h

i l

<*

J i ii i t

A'

LOUIS C. KURTZ
Chairman of the Board
JOHN H. HOGAN
President
H. R. HOWELL
VicePresident
H. E. RUMSEY
VicePresident
ANDREW J. HUGLIN
Vice President
HERBERT L. HORTON
Cashier
CLARENCE A. DIEHL - Asst. Vice Pres
WALTER J. ROBERTS - Asst. Vice Pres.
R. H. COLLINS
Asst.Cashhier
EDWIN F. BUCKLEY
Asst. Cashier
GEORGE D. THOMPSON
Asst. Cashier
CLYDE H. DOOLITTLE
Trust Officer
TAMLIN S. HOLLAND, Manager Bond Dept.

A Comprehensive Underwriting and
Distributing Service
In our Bond Department here in
Chicago, more than a hundred peo­
ple are engaged exclusively in serv­
ing our investm ent customers. In
addition, local offices are maintained
for resident district representatives
in Milwaukee, Minneapolis, Daven­
port, and St. Louis. In all, twelve
out-of-town representatives are con­
Capital and Surplus

•

stantly serving the financial interests
of eight central states. Through our
officers we are in personal touch, at
all times, with investment affairs in
all parts of the country, as well as
abroad. A nd back of all is the bank­
ing institution itself with its great
resources, its complete organization
and long financial experience.

Forty-Five M illion Dollars

Illinois M erchants Trust C ompany
qA consolidation o f Illinois Trust & Savings Bank,
The éMerchants Loan & Trust Company and The Corn Exchange National Bank

C H I C A G O


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Federal Reserve Bank of St. Louis