Full text of The Northwestern Banker : October 1930, 35th Year, Number 519

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Federal Reserve Bank of St. Louis

H e n r y T. Fer r i s s to H«
I nv e s t ment B a n k e r s
(Page 24)

H EN R Y T. FERRISS
Presidential Nominee,
Investment Bankers Association

;

■ S M

S !

A
Correspondent
Service
developed
from 68 yea rs’
experience

Foreman -State N ational Bank
F o r e m a n -S t a t e T r u s t A n d S a v i n g s B a n k
C H IC A G O

RESOURCES

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Federal Reserve Bank of St. Louis

EXCEED

200 M I L L I O N

DOLLARS

N orthw estern Banker
Des Moines
The Oldest Financial Journal West of the Mississippi
Number

OCTOBER, 1930

519

35th Year

In This Issue
Just Between Us

Our Vacation Feature

Business C ycles

R. W . M O O R H E A D
Editor
L. D. V A N
Associate

D O R AN
Editor

Member, Audit Bureau of Circulations

By Irvin J. Green

H om es o f P rom inent B ankers
F ou r L egal Brain T easers
Farm s and F arm ing

17
18
19

By C. A. Craig

V a ca tion Snapshots
W h a t T h ey Said at Louisville

21
22

By Wm. S . Maas

B uilding C onfidence T h rou gh a H ouse O rgan
N ew s and V iew s

26
28

By Clifford DePuy

A u tom atic D iscount Rates

By H. N. Beints

Bonds and Investm ents
Industry and the B ond M arket
Investm ent Bankers C onvention
V alu e o f D iversified Investm ents

Insurance
Bankers W ants
South D ak ota N ew s
N ebraska N ew s
M innesota N ew s
N orth D ak ota N ew s
Iow a N ew s
In the D irectors R oom
Index to A dvertisers

• ONE
G ER ALD A. SN ID E R
Associate Publisher

By Alice Moshier

Autumn Suggestions

C L IF F O R D D E P U Y
Publisher

10
12
13

By Walter E. Devlin

Dress Up Y ou r W in d ow s fo r A utum n

Proof that all fishermen are not
liars, is given in this issue on page
21, where several dignified bankers
are shown in vacation pose and rai
ment, exhibiting their catches. Most
of us have heard about the big fish
that financial magnates catch, but
we are not always given definite
proof— and here it is!
This page,
now an annual feature of the
NORTH W ESTERN
BANKER,
will tell you how a number of your
banker friends spend their vaca
tions. Be sure and read it!

W ith the haze of Indian summer
casting its lovely mantle over the
middle west, we are reminded that
another Autumn is here. W e think,
then, of shocks of corn, pumpkins,
brilliant colored leaves and that sort
of thing.
Transfer the Autumn idea to your
bank, by using it in window dis
plays!
Make those windows pay
their rent!
T o help our readers
dress up their windows in autumn
style, we have asked Miss Alice
Moshier, W indow Display Special
ist, to outline some practical dis
plays for this issue.
Y o u ’ll find
them on pages 14 and 15, with illus
trations.

A cross from the P ublisher
F ron tispiece “ Just fo r a M inute”
Sell Y ou r Bank b y M odern M ethods

TH E

39-61
39
42
49
63
68
69
71
75
79
82
95
96

•

DeBuyJBanking P ublications

W M . H. M AAS
1st National Bk. Bldg.
Vice President
Chicago
F R A N K P. SYM S
25 W est 45th Street
Vice President
New York
F. S. L E W IS
840 Lbr. Ex. Bldg.
Minneapolis, Minn.
Special Representative

OMAHA
Member,
M IN N EA P O LI S
Financial Advertisers Association
Northwestern Banker, published monthly by the DePuy Publishing Company, Inc., at 555 7th street, Des Moines, Town.
Subscription, 50c per copy, $3.00 per year. Entered as second-class matter at the Des Moines post office. Copyright, 1930.

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Northwestern Banker

October 1930

Ti,

e same friendly and

efficient correspondent
service to wlncli
tanking

friends

our
lrave

keen accustomed for so
many years.

C entral H anover
B A N K A N D TRUST C O M P A N Y
NEW YORK
15 O f i ices m 15 AUankattan Centers
R ep resen tatives in L o n d o n , P a n s , B e r i in an d B uenos dLires

NO SECURITIES FOR SALE
C A P IT A L , SU R P L U S

Northwestern Banker

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Federal Reserve Bank of St. Louis

October 1930

AND

U N D IV ID E D

P R O F IT S

OVER

105 M I L L I O N

DOLLARS

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Federal Reserve Bank of St. Louis

o 4 Cedar Rapids Dank
iì¡mii

( tí *SII
í FtSS6S
»¡«Sí iE1l S S!!®«»»»
iti li (S ' J) <ln'<
,
i si HU s a mi until! «
i
n
imi
h
.....
H It

Servicing cAll I ou) a
^ ^ E D A R RAPIDS continues to
become an increasingly im
portant grain center, and the
M erch a n ts N ational serving an in
creasing number of banks and
their customers, who save time and
money by sending items direct to us.

MERCHANTS
NATIONAL BANK
Cedar Rapids

Iowa

Northwestern Banker

October 1930

Northwestern Banker

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Federal Reserve Bank of St. Louis

October 1930

Distinctive
Service for
Banks and
Bankers
since 1863
The First N ational
Bank
o f Chicago
F irst Union T ru st
and Savings Bank

Resources exceed
$ 6 0 0 , 0 0 0 , 0 0 0 .0 0

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Dearborn, Monroe
and Clark Streets
Northwestern Banker

October 1930

W here you can drink o f

Nature’s Greatest Health Waters
Am id Surroundings o f Unsurpassed
Comfort and Elegance!

Northwestern Banker

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Federal Reserve Bank of St. Louis

Visitors to this finely appointed, luxurious hotel acclaim it
one o f the very finest resort hotels in Am erica. Refurnished,
redecorated and equipped with unsurpassed elegance, The
Elms will appeal to the most fastidious or most critical guest.
Here you can tone up your system, regain your health with
our world famous mineral waters and baths and if you wish,
enjoy all the pleasures o f resort life, golfing, swimming,
horse-back riding, boating, tennis, etc. For reservations or
beautifully done book, fully illustrating the beauties o f The
Elms and Excelsior Springs, write, wire or phone F. F. Hagel,
Managing Director.

The Elms is only 2 8 miles from
Kansas City, nestling amid sur
roundings of natural beauty,
with paved highways leading
in all directions.

October 1930

bancnorthwest company
Investment Securities
M INNEAPOLIS

Your Investment Banker . . . The Keystone

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o f Your Investment Account

The selection of your Investment Banker
is of utmost importance. The investor is
dependent upon his Investment Banker for
information and advice with reference to the
selection of his securities.
Each investment must be carefully analyzed
and appraised — this analysis and evaluation
made by men who make this a life work —
whose judgment is based upon years of
experience.
The BancNorthwest Company, serving as your Investment
Banker, offers you only securities subjected to this analysis and
judgment. Listed below are investment offerings illustrative of
the type securities which we recommend to our clients for
investment.
Approximate Yield

New York, Chicago & St. Louis R y., 4}/2 Ref. & Gen., Due 1978 -

Portland General Electric Co. 4\% , 1st M tge. & Ref. Due 1960 -

St. Joseph Stockyards Co., 5% 1st Mortgage Due 1940 - - - - -

4.60%
4.90%
5.00%

The BancNorthwest Company is affiliated with 126 other institutions in the
Northwest Bancorporation group. Securities offered by the BancNorthwest
Company may also be purchased through any of its
affiliated companies.

Northwestern Banker

October 1930

Opposing
In a recent
Comptroller Bank News

survey made by

among coimtlY

-r\ i ”
bankers in Kansas, Missouri,
u ^
Oklahoma, and surrounding
territory, they were asked the question: ‘ ‘ Do you
favor the proposal of Comptroller Pole for legisla
tion to permit a bank to extend branches within
specified trade areas?”
Seventy-five per cent of the bankers answering
this question said “ N o,” 18 per cent said “ Y es,”
3 per cent that they did not understand it, and an
other 3 per cent that they did not care and 1 per
cent left the answer blank.
It will be interesting to see if this percentage
truly represents the opposition throughout the
country on Comptroller Pole ’s branch banking ideas
and whether this opposition can really be translated
into enough votes in Congress to defeat the plan
when it comes up at this session of Congress, or if
not this year, next year. It is my opinion that if
any areas are figured out at all it will not be Trade
or Federal Reserve districts, but by states.
It will be interesting to see whether the 75 per
cent that vote “ N o” now will have their wishes
overruled in the halls of Congress.

A. E. Bryson, past president
of the Financial Advertisers
Association, believes that ad
vertising is being accepted today as a necessary part
of any promotional program fostered by financial
institutions.
It is also his opinion that advertising will be re
lied upon to a greater and greater degree by banks
and investment houses in the next decade. It is also
his belief that sales organizations as a part of the
promotional work in banks will also be installed in
the leading banking houses.
And why shouldn’t this be ? If you will talk with

Advertising
a ATecessity

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Federal Reserve Bank of St. Louis

October 1930

any advertiser who sells a product he will tell you
that advertising is the greatest intangible asset back
of all products which are sold nationally.
Even a firm such as the American Telegraph &
Telephone, which is practically a monopoly, adver
tises continually in magazines and newspapers to
keep its customers and prospective customers sold
on the kind of service which that gigantic organiza
tion is constantly rendering.
Therefore, it is my opinion that advertising can
well be used by financial institutions to increase
their business. I also believe that it will be used
more intelligently and more effectively than it has
been in the past.

Fewer FCirmers

^ listened with keen in-

nnd T arapr

terest recently t0 a ver7
able address by Dr. David
Friday, the Economist,
and among other things he discussed the ever
present farm problem. He pointed out that within
the next ten years another 5,000,000 people will
leave the farms, but that in 1940 our production
will be greater and therefore the farm problem will
be solved by having fewer farmers and greater
profits.
It was his opinion that the average income would
be at least $3,000 per farm— and that it should be
this much if a farm is to be operated successfully.
p

In France, for example, out of every one hundred
people 50 are on the farm and 50 in the city, and in
the United States at the present time there are 23
people on the farm and 77 in the city out of every
100.
During the last 10 years, Dr. Friday said, 10,000,000 people had left the farms, but in spite of this
we are worrying about an agricultural surplus.
Of course the reason that we have been able to

farm more efficiently with fewer farmers is because
of improved agricultural machinery.
In referring to commodity prices it was his opin
ion that, they would not rise during the next 10
years, but would drop 25 per cent. The index price
of the commodity list in 1920 was 164 and in 1930
was 83, but in spite of this we have gone through a
period of increasing prosperity up to the beginning
of 1930.
There is one thing sure: Agricultural legislation
has so far not solved the problem that is confront
ing us, and as pointed out by Dr. Friday, the an
swer may be fewer farmers w7ho will make greater
profits.
S tC L tC

1 have talked to several Iowa bank-

jP o l i c e

erS *n ^ie
mon^1 an(f they have
recommended to me the desirability
of having a state police which would give protec
tion to our highways and assist in pursuing bank
robbers.
This same idea has been advocated by the Iowa
Association of Police Chiefs and I believe that such
a plan should be carried out.
With the improvement in our highways and with
the automobile being used by every group of bank
robbers, it is absolutely necessary that some method
be used to pursue them after they have left the
town where the robbery has been committed.
The Vigilantes which have been so well organ
ized by the Iowa Bankers Association, are function
ing satisfactorily in the local communities but if
they could transmit robbery information to the
State Highway Police immediately after a robbery,
it is my belief that the results would be most
satisfactory.
W /lO

Our

A r e

age of constant

T p r u l e r change perhaps some of us

have come to think that our
senators and congressmen were our real leaders of
public thought.
Maybe they are for what little thinking is being
done, but if so, much of it is of the wrong type.
In this mechanical age we have produced mass
thinking, which is lacking in leadership. At the
present time we have neither the friendship nor the
respect of the world at large, and our most recent
act of unfriendliness was to place a tariff so high
that other countries can neither pay in money or
goods for the products which we would like to sell
them.
Lucius D. Mahon, vice president of Newell-Emmett Company of New York City, said recently that

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the press and the pulpit and the school leadership
has broken down. He characterized the United
States Senate as ‘ ‘ The most useless and disgraceful
legislative body in the w orld.”
In his opinion the new leadership in the United
States is big business backed by big finance, and
that banks should be looked to for an intelligent
leadership and with a feeling of sympathy and un
derstanding of the problems which are brought to
them.
People usually go to a bank, he said, unwillingly
and at times when they are in some financial diffi
culty, or may need a loan. If, therefore, the lead
ership of the United States is in the hands of finance
and business that leadership must be of an intelli
gent and constructive type if it is to accomplish
what has apparently been lacking in the leadership
of our legislators.
T h e

F in an cial

f listened with keen in
terest not long ago to an
Advertising
address by B. C. Forbes on
o f Tomorrow financial advertising, and
some of the thoughts which he expressed at that
time were these :
Financial advertisements at present are too long
and too archaic, and 50 per cent of the financial
advertisements of today miss their mark.
Financial advertising should be simple, clear, and
keyed to the tempo of the times.
There is a great change coming in financial adver
tising, according to Mr. Forbes, and he believes that
investors will be more influenced by the men and
management back of the banks and the companies
handling the funds, than they will be by the par
ticular showing of dividends at any particular mo
ment.
Institutional advertising, he believes, is only in
its infancy and that in the future great importance
in selling securities to the public will be placed on
the management of corporations. It was his belief
that investment companies must not only sell the
public their securities, but also sell them the spon
sors of their securities. He also pointed out that the
more big consolidations there were the more busi
ness there would be for the smaller institutions.
The thing that, is giving most concern to the big
banks now is that they may lose their close intimate
touch with the public.
In his opinion conditions have changed but finan
cial advertising has not, and therefore does not
measure up as it should.
He also expressed the opinion that the country is
now thoroughly deflated and that better business
conditions are on the way.

Northwestern Banker

October 1930

“ JUST FOR A M INUTE”
Arthur J. Elsley began his artistic career at the South Kensington School of Art when he was only
fourteen years old. He probably holds the record as being the youngest exhibitor of a picture admitted
to the Royal Academy.

Northwestern Banker

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Federal Reserve Bank of St. Louis

October 1930

'‘Know the value of your services. Know your costs. Establish a sell
ing price that includes a fair profit. Then go out and sell the whole
idea verbally and through the printed word to each and every depositor.

S E L L Y O U R B A N K BY
M O DERN M ETHO DS

o f either coming
N A booklet
up to the re
entitled
quirements
or
“ Survey o f
p a y i n g
the
Bank Operating
charge.
The
Ratios” i s s u e d
shorter and more arbitrary sounding this
by the Clearing House Section o f the
By WALTER E. DEVLIN
notice is, the greater will be the number
American Bankers Association, it says
President, Devlin & Bennett, Inc., Chicago
o f small depositors Avho are stirred up to
“ It is significant that while many banks
the point o f withdrawing their accounts.
answered that a service charge plan was
Or, do you wish to secure from the serv
in effect, a large number failed to show sider, before making the installation.
revenue from this source. From expe Whether or not educational work is ice charge real maximum benefits at every
rience gained in surveys, it has been necessary or desirable depends entirely possible point in your checking account
department ?
upon first— what your primary objective
found that in many cases service charge
I f this is your objective, there can be
really is, and second— what the present
plans are in effect but are not actively
attitude and understanding o f your de no question about the value o f proper edu
used. In one case less than 5 per cent of
cational work that convinces the depositor
the small accounts that should have been positors is.
that it is to his OAvn interest to maintain
Time and time again we have heard
charged, were paying a service charge.”
a profitable balance or to pay the service
bankers say— “ W ell, the service charge
What is the cause o f this condition?
charge.
drove away a lot o f small accounts Ave
W hy do so many bankers in the United
The fact that the bank makes no profit
States feel they have a service charge in Avere glad to get rid o f anyway.” There
seems to be a general feeling among
from the transaction is o f no interest to
effect and yet investigation will show only
the depositor at all. In fact, he is some
bankers everywhere, that if they can get
a small percentage o f them are collecting
what irritated about the bald statement
from the accounts that should be charged these small accounts off their books they
that he ought to pay because the bank
under the ruling. W hy will one bank will be better off. This is perfectly true
does not make money. In the first place,
collect triple the amount o f that o f another as far as it goes, but Avhen you find that
most people under their present knowl
bank? Both banks having approximately a large proportion o f those very same ac
edge o f banking business, will not believe
the same number o f accounts and the counts can be turned into profit makers,
same amount o f service charge. Are they the shortsightedness o f turning them aAvay the bank is not making money on their
account.
In the second place, they are
with the possibility o f stirring up their
making a large number o f exceptions?
busily enough engaged Avith
I f so, Avhy?
their own problems o f
W hy does a bank make
profit and loss to take a
( This is the fourth of a series of a half dozen articles on
any exceptions at all? Is
great deal o f interest to
bank salesmanship and merchandising written especially for
it because the depositor has
those o f the bank. Asking
the N O R T H W E ST E R N B A N K E R by Mr. Devlin, whose firm
not been convinced? I f so,
a man to pay the service
is Advertising and Sales Counsel for the Wisconsin Bankers
then the proper solving o f
charge before he has be
Association.)
this problem is to convince
come convinced it is to his
(sell) the depositor that
OAvn interest to do so, is ex
the bank is justified in the
ill will at the same time becomes obvious.
actly like a salesman coming in and asking
action. It is a selling job. W ith the inYou have spent a good deal o f money
for an order before he has given any
come from earning assets declining and
to secure these accounts. N oav do you
reason for the prospective purchaser to
expenses mounting, the banker must look
do so.
fo r new income. The commercial depart want to about face without any possibility
There are definite tangible reasons why
ment is the logical spot. Many banks o f ever getting back the investment you
have made to secure this business?
it is much to the best interests o f every
have adopted the small balance charge.
Do you simply wish to use the service
depositor to maintain a balance which is
True, it is a real income producer. But
charge as a lever to free yourself o f these
large enough to pay a reasonable compen
the majority o f the balance o f accounts—
present encumbrances and to collect a sation to the bank fo r providing checking
those about $100— are not carrying suffi
little extra revenue here and there?
account service.
The difficult thing for
cient balances to make them profitable.
most bankers to understand is that these
A bank should know its costs. Then apply
two points are entirely separate and dis
V ery Effective
them. And sell the depositor on the value
F T H IS is your aim, then the installa tinct. It so happens that a balance Avhich
o f the service rendered. It can be done.
tion o f the service charge without edu enables a depositor to gain the most bene
It is being done.
cational Avork is by all means the best
fits from his checking account is also the
Like a great many other questions, this
one exists largely because those in author method to employ, for everywhere this kind o f a balance which is profitable to
the bank. But it is only incidental, that
ity are much too close to their own end has been tried out a large percentage o f
o f the problem. Let us assume for a these small accounts leave the bank almost is, in the mind o f the depositor. The big
job that is necessary to be done is to
moment that you as a banker are con overnight. The only thing necessary will
shoAV the depositor Iioav he profits from
be a short, curt notice to the effect that
vinced that the service charge is just and
checking account service and then the
equitable. And you are considering the the service charge is going into effect and
the I oav balance depositor has the choice
(Turn to page 61, please)
various elements, which you ought to con-

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Northwestern Banker

October 1930

Above, Illustration No. 1— A display used at the request of lire insurance men during National Fire Prevention Week, showing
how to turn in a fire alarm. A very effective and simple display.

Dress Up Your Windows for
Autumn Time
INDOW shopping” is a common
and popular pastime o f the Amer
ican public today. It may be o f
“ Scotch” origin, judging by its cost, but
truly weighty decisions are often arrived
at through this pleasant, leisurely mode
o f “ shopping.” Until late years, “ window
shopping” meant merely visiting the win
dows showing “ ready-to-wear” garments.
Today, the plumber exhibits his'wares in
pastel shades, the electrician lias every
thing from a light bulb to a refrigerator
to show; the auto salesman makes his
whole showroom into an immense window
display-, and the wise banker gets his
message over to this important group
through his windows.
There are many hankers today who
scoff at window displays. Would one o f
these men observe “ window shoppers” for
half an hour, they would be convinced of
the need o f placing their advertisingbefore this group at the psychological
moment— at the end o f the day, when re
laxation begins. Rarely do husband and
wife ever “ shop” together except by this
easy and approved method. Could our
banker watch an engaged couple approach
the window of a furniture store, he would
often see them mentally furnishing their
own home— a delightful pastime. I f the
message of the merchant is caught, the
banker’s may be too, through window dis
plays of a truly attractive type.
Bank window displays featuring Fall
“ drives” for this or that agency will

Northwestern Banker

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Federal Reserve Bank of St. Louis

October Î930

A t very little expense and
with a small amount of work
your bank’s windows can be
made a real center of attraction
for “ window shoppers.”
B y ALICE M OSH IER
Fargo, North Dakota
he in order now, and worthy as this
service may be, it should not be necessary
to allow the set-up to be ordinary in
appearance in any way. When any group
asks for the privilege of using the bank
window space to boost their special in
terest, make sure just what is to be used
and add sufficient “ attention getting” ma
terial that the display may be up to the
usual high standard o f your bank’s dis
plays. In Illustration No. 1 is a display
used at the request o f the insurance men
in boosting “ Fire Prevention” week. A
silhouetted city in black and white was
made by pasting white paspartout on
black cardboard to give the appearance
o f windows. A miniature fire department
(which may be borrowed from any toy
department) was placed in the fore
ground. With this were tiny dolls dressed
in black “ slickers” and helmets made o f
black oilcloth. Genuine fire alarm boxes
were used, with the poster, “ Let everyone
learn to turn in a fire alarm.” This got
over a very practical message fo r the Fire
Prevention Committee, and it was dis
covered that hundreds of citizens were

entirely ignorant as to the method o f
turning in a fire alarm. However, if
your window is worth loaning to any
group, in behalf o f any community in
terest, it is worth giving time and thought
to insure an attractive display. View
every display from the standpoint o f the
ordinary citizen who wants to know “ what
it is all about” and give as much infor
mation as possible.
For instance, suppose you loan your
window to the Community Chest drive.
Procure, if possible, photographs o f the
agencies to be benefited by the funds
raised and use typed cards to give rather
detailed information. One needs to get
close to the window to read typed mes
sages, but those truly interested will take
that trouble and the indifferent read the
larger key poster, realize the bank is
taking its place in community affairs and
thus good will is created with all.
“ Wake up, Young C hap! Quit blowing
bubbles and start laying bricks o f pros
perity in the form o f dollars to your
credit in our institution” was the poster
used in the balloon display in Illustration
No. 2. The best and strongest balloons
obtainable should be secured for this, as
the lettering should be done after the
balloons are blown up and a cheap type,
bursting, will mean the loss o f part o f
your message. On a small table sets a dish
filled with what is marked as “ Dream
Suds.” This is cotton batten sifted with
artificial snow to give it sparkle. I f de-

sired, however, shaving' soap may be
lathered until it is quite dry and used in
the dish. The moisture in the soap evap
orates, but it continues to bear the same
appearance fo r more than a week. The
balloons, also, have been used for weeks,
if securely tied with cord after blowing
them up. The balloons are marked Avith
such expressions as “ Get Rich Quick
Scheme,”
“ My Next Raise,”
“ Easy
Money,” “ Dad’s Money,” “ Big Piece o f
Luck,” etc. The figure o f the man is a
cut out and one suitable fo r this may be
secured from a clothing store or druggist,
no doubt. Place in the hands o f the figure
an old-fashioned clay pipe or, if that is
impossible to find, a pipe may be traced
easily on white cardboard. I f the card
board pipe is used, it will be necessary
to stiffen it with wire on the back. Fasten
the wire in place Avith gummed tape. The
balloon used as the one the figure is in

the act o f blowing up, should be only
partially filled and then fastened to the
bowl by tying it to the wire on the back
o f the cardboard pipe or i f a clay pipe
is used, place a Avire in the inside o f the
bowl to tie to. The ferns are here used
to give color but may be dispensed with
or flowers o f any kind in vases or bowls
substituted.
On “ Easy Street”
HE expression “ When I am on Easy
Street” is so often used, that a dis
play visualizing “ Easy Street” causes a
smile and makes the message remembered.
“ Easy Street” in Illustration No. 3 is
made o f a group o f miniature houses,
green laAvns, etc., which may be secured
from any toy department ; the grass being
either dyed moss, green burlap or green
crepe paper. The outstanding feature to
this miniature scene is in the trees, Avhich

should be gilded. To make any sort o f
trees fo r miniature scenes, the trunk and
base o f the tree may be made by using a
spindle. To save expense, one can make
the trunk, however, by standing a long
nail on end and making a base of plaster
paris. The base and trunk may then be
painted green. The main part o f trees
may be made by dyed sponge cut in any
shape desired; by using dyed fern leaves
fo r branches and wrapping the “ trunk”
Avith green moss or dark green crepe. The
gold trees fo r use on “ Easy Street” may
be made o f branches bearing berries and
the Avhole tree gilded, giving the appear
ance o f “ golden apples” or any plant ‘
having small firm leaves may be fastened
on the “ trunk” and gilded. A road is
made entirely across the front of the
window by using the bank’s own bank
books and on this “ road” autos o f suitable
(Turn to page 93, please)

Above, Illustration No. 3— This depicts the comfort and ease that awaits the individual Avho will put himself on “ Easy
Street” through regular savings. Such a display is good for any time of the year.

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Northwestern Banker

October 1930

By IRVIN J. GREEN

(From address before Rotary and
Lions Clubs, at Muscatine, Iowa)

President, First National Bank,
Davenport, Iowa

IR V IN J. GREEN

Business Cycles and
W H E R E D O W E G O from HERE
HE old saying, “ The wish is father
the last thirty years, since the year 1900,
“ U.” He states that there is no doubt in
to the thought,” still holds true.
we have had eight business cycles. The his mind but what the present depression
During the year 1929, when so many longest period o f depression lasted for
is world wide and that we have been fo r
were interested in the stock market, the
about eighteen months and the shortest the last few months at the bottom o f the
hope that prosperity would continue and
period, four months. The average length
depression.
that prices for stocks held would continue
o f the depressions during this century has
A few months ago it was my privilege
to advance, lead those interested to believe
been from ten to twelve months. The to be in the New England states and there
that a correction was not necessary and
present period o f depression has been was a general sentiment that we are going
would never occur.
running for more than a year, so by the through a readjustment o f values which is
Another tendency o f the human being is law o f averages, we have reason to believe
far-reaching in its effect. It was felt that
to be easily influenced by rumors or an that a turn fo r the better should be evident commodity prices, interest rates, and
apparent trend in the minds o f the gen in the immediate future.
labor values, must all be readjusted be
eral public. We are like a
fore
business
generally
flock o f sheep in that we
could expect much im
fall in line with any gen
“ W e believe the time has come when every firm and indi
provement.
It was also
eral movement. The year
vidual must face the issue, recognize earning capacities, and
felt that this correction
1930, characterized as one
adjust future operations and expenditures accordingly. W hen
must take place through
o f depression which has
such a policy is adopted, business will find itself on its feet
out the world and that
and prosperity will be more stable.”
been accentuated by the se
some time would be re
vere drought, has created a
quired in bringing about a
spirit o f pessimism. There
proper readjustment.
is no question but what the psychology of
Colonel Ayers, o f the Cleveland Trust
Business cycles are the natural result o f
the situation is having something to do
Company, in a recent article, stated that
modern business tactics and should be ac
with the lack o f faith that conditions must
we have two types o f depressions, domes
cepted as normal, rather than as unusual.
change and that business must become
tic and world wide. The domestic depres For several years ending in June, 1929,
better.
sion comes on rather suddenly and turns
this country had been passing through a.
A review o f the events o f the past con upward just as rapidly, and can be illus period o f unprecedented prosperity.
vinces us o f the certainty o f business cy trated by the letter “ V .” The world de
Production had been speeded up, prices
cles. During the last fifty years we have
pression comes on more gradually, lasts
were satisfactory and profits o f sufficient
had sixteen periods o f prosperity and
for a longer time, and then turns grad
degree to encourage even greater produceighteen periods o f depression. During
ually better, characterized by the letter
(Turn to page 91, please)

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Federal Reserve Bank of St. Louis

October 1930

Homes of Prominent Bankers

4. The residence of M. Weil,
president, National Rank
of
Commerce,
Lincoln,
Nebraska.

1. The residence of George J.
Schaller, president of the
Citizens
First
National
Rank, at Storm Lake,
Iowa.

5. The home of Robert L.
Leach,
president,
Adel
State Rank, Adel, Iowa.
2. The home of Rolfe W ag
ner, president of the Capi
tal City State Rank, Des
Moines. It is located at
Ankeny, just outside Des
Moines.

6. The residence of E. R.
Moore, president, Ameri
can Trust and Savings
Rank, Cedar Rapids, Iowa.

7. The home of W . Z. Sharp,
president, Security Na
tional Rank and Trust
Company,
Sioux
Falls,
South Dakota.

3. The Home of Leo J. Wegman, cashier, American
Savings
Rank,
Carroll,
Iowa.

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Editor’s Note: This is the
second of a series of pages
containing photographs of
homes of prominent bankers
of the middle west that are
appearing in the Northwest
ern Ranker. The first of the
series appeared in our Sep
tember issue.

Northwestern Banker

October 1930

18
IN THIS A R T IC L E
1.
2.
3.
4.

A North Dakota Mortgage
A Minnesota Accommodation
The Forged Indorsement
Forgery and Ratification

4—LEG A L BRAIN TEASERS—4
SOLD B a North Dakota farm for
fails to discover that a check has been
$9,000, B paid $1,000 in cash, as
paid on a forged indorsement. In fact,
it may be said as a general proposition
sumed a $3,000 mortgage then on
the farm, and gave A his notes fo r the
that the law does not impose upon the
depositor any duty which requires him to
balance o f $5,000, secured by a mortgage
on the same farm.
examine his cancelled checks for the pur
pose o f ascertaining whether any of them
Now, B was the cashier of a North
Dakota bank, and he transferred the same
have been paid on forged indorsements.
By THE LEGAL EDITOR
land to the bank by a deed which stated
And where a drawee bank has paid a
check bearing a forged indorsement, the
that the bank assumed the $3,000 and the
fact that the depositor did not examine
$5,000 mortgages against the property.
contract is not supported by the neces
The mortgages were not paid, and A at sary consideration. I f there was no in
the bank’s statement and look over his
cancelled checks cannot be used as a de
tempted to hold the bank on his $5,000
tention or purpose to revive the old debt,
fense to the depositor’s claim,” says a
mortgage.
there was no consideration. The evidence
“ The property was deeded to you under
to show the absence o f such intention or leading textbook, and the majority o f the
American courts have upheld this rule.
a deed stating that you assumed the mort purpose was admissible to show lack o f
gage, and you’re bound by it,” A con consideration, a course always permissible
It should be pointed out, however, that
tended.
between the original parties to a note,”
the Indiana courts have arrived at a con
“ The North Dakota laws forbid a bank
the court said.
trary conclusion.
to purchase real estate under these cir
“ I f the drawee pays a check to a holder
The Forged Indorsement
cumstances, we are under no liability,”
by indorsement and it develops that the
the bank contended, and the North Dakota
F A B A N K pays a check purporting
purported indorsement o f the payee is
Supreme Court so ruled in a case reported
to be drawn against a depositor’s ac
in truth a forgery, the bank ordinarily
in 204 N. W . 843.
count on a forged signature, it is elemen may not have credit therefor against the
tary banking law that the bank cannot
account o f its depositor; but in that case
“ The alleged agreement on the part o f
charge the check against the depositor’s the depositor must have exercised due
the bank to assume and pay to A the
diligence in the matter o f
amount o f the indebtedness
examining his cancelled
secured by A ’s mortgage
“ The American courts are not uniform on this point,
checks, and in giving the
was, and is, an unlawful
bank timely notice o f the
contract. Such agreement
hut the courts of Indiana, Kentucky, Ohio and Pennsyl
forgery, or he cannot re
is violative of the expressed
vania have ruled that a forgery cannot be ratified, on the
cover from the bank,” says
policy o f the laws of this
ground that it is against public policy and that there is
the Supreme Court o f that
state which were enacted
no consideration for the ratification
state in a case reported in
to promote the general wel
141 N. E. 249.
fare,” said the court.

and Their

ANSWERS

A Minnesota Accommodation
F A GIVES B a note payable in three
months, but verbally agrees that it
need not be paid for four months, and
B sues A on the note, A cannot give evi
dence of the oral agreement, as it is an
elementary rule that verbal evidence is
generally inadmissible to contradict, add
to, subtract from or vary a written docu
ment.
Suppose, however, that B sues A on the
note, and A sets up the defense that he
received no value for the note. Can he
give verbal evidence on this point? This
problem came before the Minnesota Su
preme Court in the case o f 203 N. W* 604,
where the court ruled in A Is favor.
“ I f A ’s claim is true, he. is not trying
to use parol evidence to vary the terms o f
the note but to show that there is, in truth,
no note at all— no contract— because the
agreement which purports to be a note and

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October 1930

account, and it is equally elementary that
it is the duty o f the depositor to examine
his cancelled checks and promptly report
the forgery to the bank.
Suppose, however, that the check is paid
on a forged endorsement o f the payee’s
signature.
Is the depositor under the
same obligation to examine bis checks and
report the forged endorsement to the
bank ?
“ An examination o f his cancelled checks
and a comparison o f them with his own
records by a depositor should lead to a
prompt discovery o f any checks which
bear a forgery o f his signature or which
have been materially altered since leaving
his hands. But a depositor is not ordi
narily familiar with the handwriting o f
the payees o f his checks or o f the other
persons through whose hands the checks,
may pass. Consequently, a depositor is
not chargeable with negligence because he

Forgery and Ratification
N THE old “ carpet bagger” days in
the South, when the voters of a certain
state were voting on the ratification o f a
certain political problem, a large number
o f ballots came out with a picture o f a
rat printed thereon— ballots which had
been given to the more ignorant with the
assurance that they were thereby voting
fo r ratification. This story true or other
wise, has been used by a prominent south
ern novelist, but the question of ratifica
tion frequently arises in ordinary busi
ness and banking affairs. For instance,
A, without any authority whatever from
B, makes a contract in B ’s name, and B,
when he learns o f the contract, adopts
and agrees to be bound by it, thereby
ratifying the contract, and rendering
himself liable to the same extent as if he
had authorized it originally.
(Turn to page 74, please)

Stoiage of feed is an important item in corn belt farming for the current season. Many farms are cutting
more than the usual quota of corn fodder and those that have silos are putting up every bit of silage possible.

F A R M S A N D F A R M IN G
IN STE AD OF LAM EN TIN G the re
duction in crop production due to the
drought and excessive heat o f July and
early August, farmers o f the middle west
have turned their attention to the con
servation and intelligent use of available
feed supplies.
Not all farmers have enough feed for
normal livestock production but through
out most o f Iowa Minnesota, Wisconsin,
northern Illinois and Nebraska as well as
parts o f the Dakotas and Kansas and
northern Missouri there is a fair amount
o f coarse grains available as well as hay
and forage crops.
In cases where the corn crop is shortest
there are in many instances liberal sup
plies o f wheat and oats and these grains
now are selling at bargain prices.
The feed situation resolves itself into
two distinct and definite problems— those
pertaining to roughage fo r cattle and
sheep and those o f grains fo r hogs and in
some cases fo r feeding beef and dairy
cattle.
Silage and fodder are helping to solve
the roughage problem and the use o f
wheat, oats and barley is being considered
seriously by farmers as the logical solu
tion o f the corn shortage problem.
Incentive to make the best o f the situa
tion and keep meat production on a basis
that is normal or nearly so is offered to
corn belt farmers by the findings o f the
bureau o f agricultural economics o f the
United States Department o f Agriculture.

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By C. A. CRAIG
Farm Editor
It is pointed out that while receipts o f
livestock at the principal markets indi
cate little departure from normal condi
tions in regard to total numbers, it is ap
parent that there is a deterioration in
quality o f livestock and it is noticeable
that few cattle and sheep are going to
the country fo r feeding.
Indications are, too, that hog produc
tion will be cut to an extent that should
make pork production profitable fo r those
who will have hogs to market next sum
mer and fall.
Indications are that the lack of interest
just now in feeders and stockers should
mean better prices next season fo r fat
cattle.
These predictions are based on the fact
that the situation as it exists now indi
cates that many parts o f the country
could not if they wished contribute to the
nation’s meat supply so that the corn belt
farmers are in a rather advantageous p o
sition if they can adjust their feed re
quirements and the available supply to
meet a demand that looks now as if it
would return to the feeder a fair return
on his investment in feed, original pur
chase o f livestock and labor.
P E R H A P S NO P H A SE o f agriculture
has regained fo r the time being at least
a greater measure o f balance after a,

period o f depression than has dairying.
Short pastures and hot weather cut dairy
production to an extent that has meant an
almost complete wiping out o f a butter
surplus that was depressing the industry.
Prices have rallied and the dairymen are
smiling now whereas a year ago they were
quite blue.
The dairy sections o f Iowa, Minnesota
and Wisconsin have better than average
crops this year and farmers in those areas
are extremely favorably situated as re
gards the feed and general economic out
look.
OUR FAR M E R S need a lesson like the
one this year to wake them up to the op
portunities fo r feed conservation that con
front them each year but that are wasted,,
in the opinion o f a veteran farmer and
cattle feeder who unburdened himself to
the farm editor at a middle western district
fair a couple o f weeks ago. This man is
a successful farmer who owns large acre
age o f Iowa land and has fed cattle and
hogs all o f his life.
“ This fodder has a lot o f feed value in
it,” he said.
“ When we have a short corn crop you
may be sure that the stalk and leaves o f
the corn plant have a larger amount of
feed value than usual.
“ It surely will pay the farmers o f the
corn belt to cut all the fodder possible
and to put up as much silage as they can.
Temporary silos will serve the purpose-

Northwestern Banker

October 19301

20
very nicely and a corn crib o f wire or
picket fencing' lined with building paper
will prove useful in cases where farmers
do not have permanent silos.
“ Wheat, oats and barley are a bargain
right now for feeding.
“ This should be a lesson to the farmers
that we should waste not but should utilize
a greater percentage o f the available feed
not only this year but every y e a r/’ he
concluded.
IN SOME OF THE wheat belt there
will be reduction of the winter wheat
acreage not entirely due to a desire to
conform to the policy of the federal farm
board in cutting down on acreage but
because the farmers find the ground so
hard to plow that they are making no
effort to prepare a seedbed.
A LE X A N D E R LEGGE, chairman o f
the federal farm board, has been address
ing many farmer audiences throughout the
middle west on the matter o f crop regula
tion and he makes out a rather plausible
case.
“ We are just warning you that i f you
over produce there is no alternative but
that you take lower prices and so does
everyone else that raises that commodity,”
he warns.

Wheat prices can not improve until
there is a cessation in the piling up o f a
surplus, according to Mr. Legge.
Perhaps the most telling argument that
he makes is the one in which he refers to
his own experience as executive o f a large
implement company.
“ It was my job to figure out about how
many harvesting machines would be re
quired in a given season,” he tells his farm
audiences.
“ W e found the most satisfactory situa
tion when we had just exactly enough
to supply the demands o f the farmers.
“ I f we had a lot left on hand at the
end o f the season we didn’t make a profit
on them because o f the carryover or if we
failed to have enough to meet the demand
we saw the business go to our competitors.
“ W e found that a normal supply to
meet a normal demand was most satisfac
tory just as you farmers have found that
you made the most money on a normal
crop at a normal price.”

chief o f the dairy division at the Univer
sity o f Minnesota.
Wheat should be ground and mixed
with other grains in the dairy ration so
that it does not constitute more than a
fourth or a third o f the total amount o f
grain fed. It is said to be the equal pound
fo r pound o f corn.

N E A R L Y 1,300 4-H club boys and girls
took part in the state fair in Minnesota.
Each member present represented his or
her county in project in which outstand
ing work had been done.

IN SOUTH D A K O T A the 1930 crop o f
small grain is said to have been sufficient
to supply plenty o f seed wheat, oats and
barley. There is however, a possibility o f
a shortage o f desirable corn for seed un
less special effort is made to save new
seed this year and make available 1929
seed corn from the crib.

W H E A T IS EQUAL to corn fo r dairy
feeding, according to P rof. C. H. Eckles,

AN E X H IB IT o f wheat-fed pigs is said
to have attracted a great deal of interest
at the Nebraska State Fair at Lincoln
recently. Wheat was found to be just a
little better than corn for feeding pigs,
it is said, and the advantage is quite no
ticeable with corn prices slightly above
wheat prices.
Further details will be
given Nebraska farmers at the annual
swine feeders day on October 17.
E A ST E R N N E B R A SK A farmers are
reported to have reduced their wheat acre
age considerably while there has been an
increase in the western part o f the state.

W hen Bankers Take Their Vacations
(See photos on opposite page)

No. 1. R. W . PUTNAM, president o f
the Red W ing National Bank and Trust
Company, Red Wing, Minnesota, last
year president o f the Minnesota Bankers
Association, Mrs. Putnam and two chil
dren, M arjorie and Bob, Jr., snapped in
front o f the Spanish house which is to
be the fam ily home o f the Putnams at
San Diego, California this year. Bob
and Marjorie will attend the State Col
lege at San Diego.
Mr. Putnam says:
“ I don’t want you to think I am de
serting the good educational institu
tions o f the middle west fo r a coast col
lege, since the year the fam ily is spend
ing in California, is primarily fo r the
benefit o f my w ife’s mother’s health. I
will be holding down the old job at Red
W ing so the better part o f the family
can bathe in California’s sunshine.”
No. 2. E. W . ARBEGUST, cashier,
Farmers State Bank, Lamont, Iowa, is
shown here with a string o f fish caught
in Clear Lake, near Waseca, Minnesota.
He say s: “ It is a fine resort, but the big
fish weren’t biting on the day this snap
shot was taken.”
No. 3. P. A. DIETZ, cashier of the
Donahue Savings Bank, Donahue, Iowa,
enjoyed a fine vacation this summer in
and around Denver, where he attended

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October 1930

the annual convention o f the American
Institute o f Banking. Moreover, he won
a check fo r $200 as third place in the na
tional Institute speaking contest. No
wonder he’s smiling so heartily in this
snapshot taken on the top o f Pikes
Peak, in which are shown, from left to
right: A jolly couple from California,
Mrs. Dietz and Mr. Dietz, Mrs. Ed Hunt
ington and Mrs. and Mr. Ben Houvenagle o f the First National, Davenport.
No. 4. W . D. KOONS, cashier, the
First State Bank o f Britt, Iowa, with his
children, Verner, Jim and Virginia,
taken on the back porch o f a cabin at
the foot o f Mt. Rushmore, South Dakota.
No. 5. A front view o f the Putnam
house in San Diego, and Mr. Putnam
says: “ The man in front is not the hired
man.” O f course it is Mr. Putnam.
No. 6. F. G. GROSZ, cashier, the First
State Bank o f Bowdle, South Dakota,
had a cottage this summer on Lake
Minnewaske, near Glenwood, Minnesota,
where he enjoyed the fishing, swimming
and golfing. From left to right, A. C.
Merkel, assistant cashier, the Security
State Bank o f Bowdle, Mr. Grosz and his
son Lester. Mr. and Mrs. Merkel were

guests this year at the Grosz cottage.
No. 7. J. E. W ILSON, cashier, State
Savings Bank, Lanesboro, Iowa, enjoyed
his 1930 vacation in the Rockies. He is
snapped here with a group o f friends in
the Pikes Peak region.
No. 8. H. N. REINTS, president, the
Kesley State Bank, Kesley, Iowa,
snapped while on vacation with his fam
ily on the north shore o f Lake Superior.
No. 9. G. E. CAMPBELL, cashier,
the Security Savings Bank, Ireton, Iowa,
says his vacation this year was taken
more or less in pieces, but he is evidently
enjoying life immensely in this snapshot
showing himself and one o f his favorite
nieces.
No. 10. J. J. SM ITH, president o f the
Farmers Trust and Savings Bank,
Marion, South Dakota, with a morning’s
catch at Long Lake, near Fergus Falls,
Minnesota. He says : “ The bass weigh,
3Y2 to 4% pounds and jump out o f the
water three feet high. That’s where I
get a real kick out o f fishing.”
No. 11. IV A N O. HASBROUCK,
cashier o f the Iowa State Bank at J e f
ferson, Iowa, took the fam ily on vaca
tion in the Black Hills. He is pictured
here with his two sons, Jay and Dick, at
Sylvan Lake.

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Vacation Snapshots of Bankers
(See

opposite page for story)

* •?

' ’V

Northwestern Banker

October 1930

W hat They Said and Did at
Louisville

LOU ISVILLE opened wide its doors
to the five hundred and more delegates to
the fifteenth annual convention o f the
Financial Advertisers Association last
month. For four days and nights the
members of the advertising staffs o f the
country’s most progressive financial insti
tutions were participants o f true southern
hospitality.

Just as a surprise package thrown in
for good measure, GOVERNOR FLEM
D. SAMPSON of Kentucky at the annual
banquet bestowed on A. E. BRYSON, vice
president o f Halsey-Stuart & Company,
Chicago, retiring president of the F. A. A.,
a commission as a Colonel in the Kentucky
National Guard.
Colonel Bryson was
also presented with a wrist watch by the
association in appreciation o f his work
during the past year. Both gestures most
fitting. There is no finer type o f executive
in any branch o f the advertising profes
sion in America than the Colonel.
F. R. K E RM AN , of the Trans-America
Corporation, San Francisco, last year’s
first vice president, was elected president
o f the association for the coming year.
Mr. Kerman, like Colonel Bryson, is an
outstanding and nationally known figure
in financial advertising. He was unable
to be present at the convention and the
news was conveyed to him by wire.
One o f the most interesting phases of
the convention was three informal meet
ings on the second day of the publishers
and editors of ten o f the leading banking
magazines, the final meeting including at
tendance by the Board o f Directors of the
F. A. A. Closer cooperation was prom
ised by the publishers. The magazines reppresented w ere: N or th w ester n B a n k e r ,
Des Moines; Mid-Western Banker, M il
waukee; Central Western Banker, Omaha;
Bankers Monthly, Chicago; Southern
Banker, Atlanta; Bankers Magazine, New
York; Burroughs Clearing House, De
troit; Mid-Continent Banker, St. Louis;
Southwestern Banker, Fort Worth, and
Bank News, Kansas City.
With the convention theme “ The Chal
lenge o f the Next Decade,” some sixty-six
•speakers (they actually prepared their own
speeches) addressed the various depart
mental and general sessions. Speaking of
the object in selecting the above theme,
President Bryson said: “ It was a natural
selection, standing as we do at the portals
of a new decade. More important, it has
been our thought that as bank advertising
men we must develop an ever-widening
viewpoint adequately to discharge our
growing responsibilities.

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By Wm. H. MAAS
Vice President, De Puy Publications

“ The advertising man of today must, of
course, know advertising. But, more than
that, he must have an intimate knowledge
o f the business with which he is identified,
and must also be a close student o f busi
ness trends. Thus our convention will
emphasize the forward look.”
Financial institutions can become the
conservitors o f prosperity through intelli
gent use o f advertising, EARNEST
ELMO CALK IN S, president o f Calkins
& Holden, told the research departmental
o f the association. “ They need only use
what they know and spread it by adver
tising to avoid such financial catastrophes
as we had last fall and escape the conse
quences o f them when they occur. I sug
gest that financial institutions maintain
two advertising appropriations— one for
their own advertising to explain and sell
the services of their own concerns; the
other, a much larger appropriation, to be
used as an emergency fund to be devoted
to telling business, their own customers,
their own community, their own country,
those things which, if understood and
acted upon, will keep the fabric o f busi
ness on an even keel, and especially pre
vent such colossal exhibitions o f nervous
ness, cowardice and temporizing as we
have experienced so far this year.”
Speaking before the Small City depart
mental, M ISS R U TH PE A R S E , adver
tising manager, First Wisconsin National
Bank, Milwaukee, took as her subject,
“ Solving the Copy and Media Problems.”
She said, “ It seems to me that a bank in
a city o f less than 50,000 is in a ,position to
do unusually effective advertising. W hat
ever is lacking in mechanical facilities for
production is more than compensated for
by the opportunities afforded fo r an inti
mate and sympathetic knowledge o f the
customers’ needs and problems.
Even
though from a personal standpoint he
might prefer not to know so much about
his neighbors as is inevitable in a small
city, the banker can turn this knowledge
to untold business advantage if he is alert
to the possibilities which surround him
every day.
“ The biggest problems in planning (and
I wish you would remember that word
‘planning’ ) effective advertising are to
understand what people want, how they
think, and what moves them to action.

Who has half the opportunity to study his
public that the banker in a small city has ?
He knows all about his customers from the
time they appear on earth until their wills,
if any, are filed fo r probate. He sees
them when they have money and when
they need money. He serves and advises
them during business hours, he goes to
church with them on Sundays. His chil
dren play with their children and his wife
works with theirs on civic and social p ro
jects. Whether he likes it or they like it,
he can’t help knowing pretty much all
about them.
“ I f he is a real person, it is amazing to
what extent they will confide in him. They
talk over things with him that they
wouldn’t tell their relatives in a million
years. He knows about their apparent
and hidden resources, he knows their am
bition and the obstacles they strive against,
and from years o f this intimate contact
with human souls he has learned to judge
pretty accurately their chances of achieve
ment.”
“ Coordinating Bank Management with
Bank Advertising,” was the subject o f an
address by H E R B E R T Y. PROCHNOW
o f the First National Bank o f Chicago.
He said: “ In the columns o f bank publi
cations, in the conventions o f this associa
tion, and on various occasions, financial
advertisers have emphasized primarily one
phase of this matter o f coordination— the
importance o f having a bank’s employes
trained properly to meet customers and
prospective customers.
It is usually
argued— and rightly so— that it is useless
to spend time and money in advertising
and new business effort, unless the service
provided and the contacts made by em
ployes result in satisfied customers, who
will commend the institution to an everincreasing circle o f prospects. In other
words, employes’ performances must
match advertising promises.” Mr. Proclinow then launched into the subject of
sound bank management. “ When 25 per
cent o f the banks in a certain state fail to
make any profit, 50 per cent break even,
and only 25 per cent show a profit, under
what handicaps must financial advertising
and business development work in 75 per
cent o f the banks o f that state,” he in
quired. “ What sort of a professional
opening is there in those banks for the
work in which we specialize ? W hy should
any bank attempt to attract new business
when it has not yet learned how to make a
profit on it? Moreover, is financial adver
tising to be judged by the profit figures
when through one or another phase of
poor management all the benefits o f the
best possible advertising and new business
effort are dissipated?

“ When the bank commissioner o f an
other state remarks that 90 per cent o f the
bank failures there are due to mismanage
ment, is it not imperative that the financial
advertiser take a broader and more serious
interest in banking? Is he not interested
in seeing that his bank applies those scien
tific management principles which will
convert into adequate profits the prestige
he has helped to create and the deposits he
has helped to build? Shall he stand by
and say that he is not concerned when the
outcome of the banking operations upon
the business he has attracted are in some
instances running into losses that threaten
the continuance o f his advertising activi
ties? I am certain that it is not necessary
to present further evidence to indicate
that advertising and new business efforts
are inextricably geared into the manage
ment of the bank.”

E ARLE L. H A R R A H , assistant secre
tary o f the Foreman-State Trust and Sav
ings Bank, Chicago, discussed the question
o f “ Organizing and Operating a New
Business Department.” He confined his
remarks to the discussion o f an outline
which was designed and followed in the
actual organization and operation of a
Trust New Business Department.
The
outline was divided into six main subjects,
namely, Lessons from Past History; Mer
chandising; Advertising and Publicity;
Follow Up System ; Research and Conclu
sion.
“ Revising Commercial Banking Service
to Meet Future Needs,” was the subject
discussed by H. A. LYON, advertisingmanager, Bankers Trust Company, New
York City. “ W hy do we have commercial
banking?” he asked. “ The old answer

was, H o make money fo r ourselves. ’ The
new answer is, ‘The community couldn’t
get along without banks.’ Both answers
are still true. A bank has two main ob
jects— properly to serve the community,
its customers; and to earn a fair return on
the investment o f its stockholders. I f a
bank is fulfilling these two functions, it
is undoubtedly a success. The matter of
a fair return to stockholders is pretty
much a matter o f public record, although
the earnings o f the banking department
alone are not. The question o f service
to customers is relative. A t best, then, we
are left with two variables, one o f which is
the concern o f the production or operating
department ; the other lies in the province
o f the sales department. These variables
are interdependent. Without profits there
will be no financial support and the enter
prise will die; without service to custom-

Snapped at the Financial Advertisers’ Association convention held last month in Louisville: No. 1, Miss Ethel Scully, vice president,
Morris F. Fox & Co., Mlwaukee; (2) Lawson Hetherwick, publisher, Southwestern Banker, Ft. Worth; Wm. H. Maas, Chicago, vice presi
dent, DePuy Publications ; and J. J. Wengert, associate publisher, Micl-Continent Banker, St. Louis.
(3) H. Fred Wilson, Continental
Illinois National Bank and Trust Co., Chicago; (4) Edward A. Hintze, cashier, Peoples Trust and Savings Bank, Chicago, and Bert F.
Gunderloek, assistant cashier, Second Security Bank of Chicago. (5) Milton H. Schwartz, advertising manager, Foreman State N a
tional Bank, Chicago; (6) Joseph Levin, advertising manager, A. G. Becker & Co.; (7) Charles M. Redmond, vice president, Boulevard
Bridge State Bank, Chicago, and Julian M. Case, Peoples Wayne County Bank, Detroit. (8) Earnest Elmo Calkins and W . C. Calkins, Jr.

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Northwestern Banker

October 1930

Henry T. Ferriss to Head
Investment Bankers
(See Cover Photo)

E N R Y T. FERRISS, executive vice president of the First
National Company of St. Louis, is scheduled to become

president of the Investment Bankers Association of America, at
the convention of that organization which is slated for October
at New Orleans.

. f e r r i s s was born in St. Louis, Missouri, on February
25, 1882. He was graduated from Cornell University in

1902 with the degree of Bachelor of Arts and from Washington

University Law School in 1905 with the degree of Bachelor of
Laws. His father, Hon. Franklin Ferriss, was for many years judge
of the Circuit Court of the City of St. Louis and also of the Supreme
Court of Missouri.

R. FERRISS practiced law from 1905 until 1915 when he

became vice president and counsel of the Mortgage Trust
Company, St. Louis. In 1920 this company was purchased by the

First National Bank in St. Louis and shortly thereafter its name
was changed to the First National Company. He then became
executive vice president of the First National Company, in direct
charge of its operations, which position he still holds. He has
been active in the work of the Investment Bankers Association
of America, having served for four years on its real estate securi
ties committee, one year on its industrial securities committee, two
years as chairman of its membership committee and two years as
chairman of its municipal securities committee.

N 1926 he was elected a governor of the association, for a threeyear term, and in 1929 a vice president. In August, 1930, he

was nominated by the board of governors for the office of president
of the association, for the year 1930-31, subject to election at the
annual convention in October, 1930.

N 1908 Mr. Ferriss married Miss Edith Platt of Lake Forest,
Illinois. They have four children. Mr. Ferriss is a member

of the St. Louis Country, Noonday, Commercial and Industrial
Clubs of St. Louis and the Missouri Athletic Association.

He is

a member of the Episcopal Church.

ers, there will be no customers, and capital
will starve to death.”
GUY W . COOKE, assistant cashier,
First National Bank o f Chicago, went
back to the Scriptural days to start his
address on “ This Decade o f Savings A d
vertising.” He said : “ Advertising always
looks forward, yet there is probably no
form of human activity more affected by
the background o f the past. The basic
principle o f saving has not changed since
Joseph, interpreting the dream of
Pharoah, induced the Egyptians to save

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Federal Reserve Bank of St. Louis

October 1930

during the fat years that they might not
starve in the famine o f the lean years.
You may recollect that under Joseph’s
direction a fifth part o f all the land p ro
duced was laid up against the day o f need.
His project was an unqualified success,
but few savings advertisers o f this day
have the courage or temerity to recom
mend banking 20 per cent o f income. It
is a far cry from the Egyptian tale in
Genesis to the prerevolutionary days of
the American colonies, when the patron
saint o f both thrift and advertising, Ben
jamin Franklin, wrote savings copy so

good that it is still quoted. In all the
years between the two, and all the years
since, there has been no change in the
theory o f saving and none in the practice.
Saving remains changeless. Its formula
is as unalterable as it is simple. The d if
ference between income and outgo, when
it is plus, is the answer. That is all. And
yet, it is the line o f demarcation between
success and failure, between happiness
and misery.
“ Savings advertising o f the future will
not differ materially from that o f the
present or the past. Indeed, it will re
quire a good deal o f vision to see how it
well could. Everything possible has been
covered and recovered, until a subject less
vital would have been worn threadbare.
Savings copy o f this decade will be crea
tive, constructive, competitive, and per
haps cooperative.”
Acknowledgments o f thanks for adver
tising space donated by the N o r th w e st
ern B a n k e r , M id-Western Banker, Cen
tral Western Banker, and other banking
journals, were recorded by the association.
Every section o f the United States was
represented at the convention. Unlike
some state bank conventions, the large
number o f delegates not only registered
but actually attended the sessions.
Dividends o f American corporations
may fall a little short in 1930 from those
o f Í929, but the decline will not be more
than 5 per cent, according to DR. D A V ID
F R ID A Y , economist o f A. G. Becker &
Company.
The total profits o f industry in this
country will be larger than the dividends
paid, added Dr. Friday. During the de
pression o f 1921, the profits o f all corpo
rations in the United States amounted
practically to zero. Yet their dividends
were reduced by less than 15 per cent.
In every year since these dividends have
exceeded the preceding year.
“ There are those who believe that the
next decade will be radically different
from the last,” Dr. Friday said. “ It is
my belief that in most respects the two
periods will be similar, although by no
means identical. Commodity prices will
continue a downward trend. This does
not mean that they will be cut in half.
That is probably impossible, but they may
fall to 25 per cent, as they have since 1923.
I f they do, they will be back to the pre
war level.
“ For the immediate future, we will en
jo y a stable price level. But in every pe
riod o f depression, commodity prices will
recede. A policy o f cooperation on the
part o f central banks o f England, France,
Germany and the United States, can do
much to mitigate this decline.”
Dr. Friday stated that dividends paid to
stockholders more than doubled in the last
ten years, due to the efficiency of industry.

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Federal Reserve Bank of St. Louis

The Largest and
Oldest
avm
in Iowa
♦

The high ideals, soundness of management and
splendid facilities that have accomplished the pre
eminent position for the American Commercial and
Savings Bank among the great banks of Iowa, urge
its selection by you as your correspondent bank in
this territory. Write us today.

AMERICAN
BANK
COMMERCIAL AND SAVINGS

DAVENPORT, IOWA

Northwestern Banker

October 1930

Above, some issues of the Lake City Bank Beview, from which the reader can gain some
idea of their editorial content.

Building Confidence Through a
House Organ
NE o f the most interesting and ef
fective pieces o f bank advertising
that has come to our attention in
recent months is a four-page house or
gan, published by the Lake City Bank &
Trust Company at Lake City, Minnesota.
The Lake City Bank Review, as the
house organ is called, appears once a
month and is mailed to bank customers
and prospective customers.
The review is decidedly newsy in its edi
torial makeup and little or no attempt is
made to directly sell the services o f the
bank.
W e are reproducing below several o f
the recent issues.
M. L. Erickson, vice president and cash
ier of the bank, in commenting on this
advertising, makes the following com
ments :
“ Up to five years ago the bank’s adver
tising appropriation was pretty much
wasted. Some o f it still is, but the per
centage is as small as we can make it, hav
ing in mind that we are human and unable
to entirely resist the persuasive smiles of
the pretty (they always are) solicitors for
church programs, cook books, home talent
plays and the like. The waste that form
erly went to 16 cylinder salesmen with

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Federal Reserve Bank of St. Louis

October 1930

schemes and novelties and ‘services’ has
stopped.
“ The bank has always been a liberal ad
vertiser, but formerly without direction or
purpose. Nobody had the time or incli-

M. L. EBICKSON

nation to give it attention, although keenly
aware o f the need for it. The desirability
o f a home edited and printed house organ
had appealed to us for many years, in
fact, some fifteen years ago we got out a
few irregular issues o f such a publication,
but did not continue.
“ When Mr. Kenneth B. Law went to
work in the bank in the fall o f 1925, the
matter o f a bank publication was put up
to him. He had edited a paper in college
and was familiar with the work required,
was enthusiastic about the idea, and went
ahead with it on the condition that he
would get contributions from the rest o f
us. The Review has been issued monthly
since then without a break. It is the back
bone o f our advertising program. We are
getting something fo r our advertising
money.
“ To the trained advertising man, I have
no doubt it appears crude and full o f ad
vertising crimes. Yet, for our purpose,
compared to technically perfect advertis
ing, written by an expert for a large num
ber o f banks, it is better even if it isn’t as
good. The reason for this paradoxical
statement is that in our own paper we can
and do give intimate details o f our own
(Turn to page 69, please)

%¿?gU5HfcPj§i

A Steady Demand
for High Grade Bonds
Institutional buying and sales to conservative investors have had
a marked effect on the bond market for several months. Coupled
with this factor of steady and increasing demand is the decrease
in amount of new issues reaching the low point of the year in
August.

New bond offerings in August registered a 5 3 % de

crease from those of the previous month.
We enter the fall with many important factors indicating a
strong bond market during this winter and beyond.

Money

rates are low ; there is no tendency toward widespread stock
speculation; there is considerable surplus money available for
safe investment— is it any wonder that financial observers are
enthusiastic about the bond market outlook?
Iowa banks that buy bonds find our offerings of a character
suited to their requirements and our service of practical value.
Write, without obligation, to our Burlington office for our broad
list of selected bond offerings.

W. D. Hanna and Company
BONDS

FOR

INVESTMENT

Burlington, Iowa
Pioneer Bank Building, W a terloo

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Federal Reserve Bank of St. Louis

The H igley Building, Cedar Rapids

The Laurel Building, Muscatine

Northwestern Banker

October

LAST MONTH I W A S IN LOU IS
V ILL E attending the Financial Adver
tisers Convention and I hadn’t been there
since my days at Camp Zachary Taylor,
when I was learning how to be an officer
in the Field Artillery.
There was a time in my young life
when I thought that the Field Artillery
had mostly to do with horses, but before
I got my commission I realized that there
was more geometry, trigonometry and
higher mathematics in figuring the range
o f your guns than in most any other
branch o f the service.
Anyway, as I look back I think what
a grand thing it was to have fought a war
to end wars. Because since the W orld
W ar there have been no disturbances, no
outbreaks; everything has gone peace
fully along with all the nations o f the
world.
What a travesty upon our so-called in
telligence— what an insult to our master
minds— that we still have to talk about
killing people in order to settle our d if
ferences.
* * *
THE F IR S T SIGN which greeted me
when I entered my room at the Brown
Hotel at Louisville, was under the glass
on the top o f the dresser and read as fo l
lows : “ Bottle Opener will be found at
tached to bathroom woodwork.”
It has always seemed strange to me in
these days of Prohibition how easy they
make it for you to break the law— or per
haps they don’t expect you to mix any
thing with your gingerale.
# * *
I H A V E A L W A Y S HAD a very high
respect for the men o f the south and es
pecially the so-called Colonels o f Ken
tucky, but the new generation must be a
sawed-off midget variety, as least as far
as the hotel managers are concerned, be
cause the mirrors in the bathroom were
placed so low on the wall that I couldn’t
even shave without bending half over.
Maybe I am wrong, but I should think
they would expect a few full-grown corn
huskers to use their hotels once in awhile
and provide accordingly.
* * *
A. E. BRYSON, retiring president o f
the F. A. A., opened his remarks by stat
ing that the association represented the
largest amount o f capital o f any adver
tising association in the world.
This may be true, but what the mem
bers o f the association will have to do is
to appropriate more o f it fo r advertising
purposes.

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October 1930

Financial advertising hasn’t even begun
to get its stride or do what it should do
as an instrumentality to build financial
institutions or sell securities.
* * ifc
R A L P H ST A R R BUTLER, vice presi
dent of General Foods, Inc., o f New York,
in speaking before the convention, said
that the average size o f business units in
the future would be much larger but that
the small business will continue as long as
individual initiative exists.
I f Mr. Butler or anyone else thinks
that American initiative is going to be
stifled, then he better wake up and hear
the birds sings. The time will never come
in this country when either the Socialist
or the Bolshevist will control the govern
ment and attempt to put over the falla
cious idea that we should all work fo r the
same wages and all have an equal amount
o f property under their so-called economic
system.

* * *

DR. D A V ID F R ID A Y , economist for
A. G. Becker & Company, made the state
ment that 1932 will see new profits ex
ceeding anything so far.
America is going forward, according to
Dr. Friday, and “ will still lead the world
in technological advance in the next ten
years.”
And why shouldn’t we? W e have the
money and the brains for world leader
ship and will continue to maintain that
position.
* * *
L. P. SW O V ER LAN D , JR., cashier o f
the Peoples State Bank o f Gary, Indiana,
has been writing some articles fo r Prather
Knapp, editor o f the Bankers Monthly,
and these articles have had to do on “'How
to Advance as a Banker.”
An article in the September issue
caused a lot o f interesting comment among
the boys at the F. A. A. Convention and
our good friend Prather was kidded con
siderably over several paragraphs o f Mr.
Swoverland’s.
One or two o f these paragraphs con
tained such interesting information as
this:
“ Everything that is offensive and irri
tating to a refined person such as picking
your nose with your fingers, trying to
remove particles o f food from between
your teeth, yawning, sneezing or cough
ing without making an attempt to use
your handkerchief or without excusing
yourself, butting in on a conversation,
unless you beg pardon for the interrup
tion, smoking in the presence o f a lady

without asking her permission, using
rough or profane language in the pres
ence o f ladies or gentlemen— all these are
to be avoided.
“ Don’t make the mistake o f filling your
mouth too full, fo r this is vulgar in the
extreme. I f someone asked you a ques
tion while your mouth was full, you would
have to take Time out’ before being able
to answer. Conversation and slow eating
are big aids to proper digestion.”
Maybe there are some bankers who need
this sort o f information but I didn’t think
so.
Maybe the next series o f articles will
be on “ How to Raise Better Banking
Babies,” by A Banker’s W ife.
% * *
J. G. BOPP is president o f the First
National Bank of Hawkeye, Iowa, and
also mayor o f the town. Albert Begalske,
assistant cashier o f the bank, is mayor o f
Donnan, so here we have a bank with two
mayors which certainly is some distinc
tion.
Mr. Begalske makes his home in Don
nan and goes over there every night to
see how the city hall is operating, oil up
the political machinery, and keep every
thing in good shape. I assume that when
ever the directors o f the First National
meet that it is always in the form o f a
council meeting and I presume one mayor
presides one day and one the next.
* * *
W A L K E R D. HANN A, president o f
the W . D. Hanna & Company, Investment
Securities, Burlington, Iowa, who is al
ways active in investment banking asso
ciation affairs both in his own state and
in the national association, has had the
honor o f being elected a second time to
the Executive Committee o f the Central
States Group o f the Investment Bankers
Association o f America.
This is not only a fine compliment to
Mr. Hanna but is also an honor to the
state.
The complete list o f officers for the
Central States Group o f the Investment
Bankers Association is as follows:
Officers: T. J. Bryce, Chairman, Vice
President Continental Illinois Co., Chi
cago; E. C. Wampler, Yice Chairman,
Vice President Lawrence Stern & Co.,
Chicago; P. S. Russell, Secretary-Treas
urer, Vice President N. W . Harris Co.,
Chicago.
Executive Committee: Wayne Chatfield-Taylor, Field Glore & Company,
Chicago; Walker D. Hanna, W . D. Hanna
& Co., Burlington; J. Parish Lewis, First
Wisconsin Company, Milwaukee; P. A.
Walters, Stone Webster & Blodget, Chi
cago ; Samuel W . White, National Repub
lic Company, Chicago; Harold E. Wood,
Foreman National Company, Chicago.
# * *
J. P. YOD ER, Director o f Publicity o f
the Chatham Phenix National Bank &
Trust Company o f New York, attended his

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Fo r e m a n -S tate
C orporation

Investment Affiliate o f
Foreman-State National Bank

CHICAGO
33 N . La Salle St.

NEW YORK
52 Wall St.

Northwestern Banker

October 1930

30
first Financial Advertising Convention
at Louisville, having recently taken charge
o f the publicity o f his institution.
Mr. Yoder has had a very excellent
background o f newspaper and advertis
ing experience and brings to the bank
modern, up-to-date ideas Avhich will be
put into use in working out the future
publicity plans for his institution.
* % *
OMAR H. W R IG H T , president o f the
Security National Bank of Belvidere, Illi
nois, thinks that there is no business in
the world where so much advice is given
on how it should be done, as the hanking
business, and he expresses his opinion o f
all these articles, ideas, and speeches, by
saying :
“ Bank management, service charges,

credit bureaus, education, float expense,
secondary reserves, duties o f directors,
howT to buy bonds— how not to buy them,
charge for this, charge for that, hut any
how, charge. Who to hire— who to fire,
how much interest to pay and to whom
and how to figure it. Who we should loan
money to and how much— how we should
make them pay and when— or what have
you, until some o f us begin to repeat in
our sleep that old school classic, ‘The
Charge o f the Light Brigade’ and Ave
ponder if there will be any o f us left,
Avhen all these cannons get through taking
a shot at us.”
I wonder if bank customers ever have
the same idea o f the banker— when he
tells them how to run their business and
how to bring up the children.

T. J. CALDW ELL, vice president o f
the Union National Bank o f Houston, in
discussing the branch bank proposition,
makes the comparison that the chain store
has a commodity to sell and the bank a
service, and, therefore, the two cannot be
compared on the same basis.
“ The chain store,” says Mr. Caldwell,
“ brings into a locality commodities for
sale and distribution at prices involving
a lower merchandising toll than is the case
Avith the local store, and without doubt, as
far as the local consumer is concerned, a
service is rendered. The branch bank,
however, does not distribute commodities
at a lower cost, it secures control o f the
credit funds o f the locality— the very life
blood o f a community, and uses such
credit power as it may think best and ex
peditious, without regard to local needs,
except insofar as may be necessary in
pow7er. Therefore, I say that the reasons
which are bringing about the great con
solidations in production and distribution,
and Avhicli have changed largely the
philosophy o f our people with reference
to great combinations, are not applicable
to the banking business.”

The Human
E quation—
is never lost sight of at this bank.
W h en you keep your account with
us, your problems becom e our
problems; the solution of them as
much our business as yours.
W e shall be glad to give you par
ticulars o f the really helpful service
we render our correspondents.

The National Bank o f the
R . JED F U B L I C
• •

O P

C H IC A G O

• *

Office o f N ew York Representative, No. 5 Nassau Si.
Office o f Pacific Coast Representative, Citizens National Bank Bldg., Los Angeles
Office o f London Representative, 8 K ing William St., London, E. C. 4

Resources in Excess of $200,000,000

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October 1930

C H AR LES C. KUNING, vice presi
dent and cashier o f the Cedar Rapids Na
tional Bank, believes in putting a touch
o f philosophy and also psychology on his
bank statements and the last one con
tained this interesting paragraph en
titled “ Enterprise” :
“ When all your neighbors are mourn
fully expecting the future to deal them
out disaster, then is the time to face it
with a smile and tackle it with confidence.
Don’t join the man with the slogan ‘At
lifting I ’m a failure, but I ’m splendid on
the grunt.’ ”
# * *
H E RB ER T N. CASSON, editor o f the
Efficiency Magazine o f London, England,
tells what he thinks o f the American busi
ness man who allows himself to be de
pressed even in periods when business is
not so g o o d :
“ And Avhen an American business man
is depressed, the slump is in his head.
There is nothing serious to prevent him
from making money if lie thinks he will.
When fear rules the will, nothing can be
done, but when a man casts fear out of
his mind, the world becomes his oyster.
“ To lose a bit o f money is nothing, but
to lose hope— to lose nerve and ambition
— that is what makes men cripples.”

No Accident
An army surgeon was examining a
cowpuncher recru it:
“ Ever had any accidents?”
“ No.”
“ W hat’s that bandage on your hand?”
“ Rattlesnake bite.”
“ Don’t you call that an accident?”
“ Naw; the cussed thing did it on pur
pose.”

Automatic Discount Rates and the
Federal Reserve System
NOTED economist said that 65
per cent o f our successes and fa il
ures are due to causes beyond our
control. I dispute that because I be
lieve it is possible fo r us to obtain
control.
Owen D. Young, as a member o f the
first Dawes Commission, sa id :
“ Never before had I realized how the
stability o f money goes to the very basis
o f life and that when any sudden change
affects the purchasing power o f money it
touches every moral question and every
kind o f obligation.”
Sir Josiah Stamp, director o f the Bank
o f England, sa id :
“ The problem o f the price level is the
most important single problem o f our
age; it is the most bitterly practical o f
all questions.”
Our weal or woe is measured by our
understanding and application o f this
truth so long as gold is the measure o f
values as the world’s standard. Money
is the medium o f exchange that has re
lieved business from the clumsy and d if
ficult methods o f barter, and gold is the
standard o f trade values, national and
international.
Holding about half o f
the world’s gold, we have a tremendous
responsibility. Business cannot be di
vorced from ethics. In an address be
fore the Park Avenue Baptist church in
New York City, Mr. Young said:
“ The fixing o f the rediscount rate is a
financial matter but I know o f no matter
involving more moral problems than the
fixing o f the bank rate.”
The bank rate affects credit, increas
ing or diminishing the value o f the pur
chasing power o f money, giving every
dependent on his savings more or less of
the things to eat, affects wage values and
incomes, affects every engagement be
tween the debtor and creditor and the
value o f everything measured in terms
o f money. An eminent Swedish econo
mist say s:
“ The credit policy o f the Federal R e
serve Bank determines not merely the
purchasing power o f the dollar but it
also determines that o f gold and this
regulates all monetary values o f the
world.”
President Hoover says:
“ What we all want from this economic
system is greater stability that men may
be secure in their employment and their
business.”
We must realize that the price
level is fundamental to a solution o f
almost all trade depressions, strikes,

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Federal Reserve Bank of St. Louis

By H. N. REINTS
Cashier, Kesley State Bank, Kesley, J.owa

class hatreds and insolvencies. Crime
waves and fire hazards are largely eco
nomic problems and therefore are our
responsibility. What a different world
it would be if we generally realized this.
The transition from one price level to
another is what does the mischief, as it

works such intolerable injustices. The
bank rate always fixes the price level in
the end, but the return to a just rate does
not correct the injustices it has wrought
because debts were made on a different
price level and the dollar value has varied
more than 50 per cent in a decade and
must necessarily be repaid with different
quantities o f production.
Supply and
demand properly and naturally regulate

Keeping telephone service
abreast of the times
T H E R E A D I N E S S o f the
Bell System to meet changing
needs reflects alert manage
ment and flexible personnel.
This has a significance to
investors beyond the actual
revenue from new fields of
activity. It indicates a spirit
of dynamic growth.
T h e telephone typewriter
is a useful tool of business at
the modern tempo, putting
distant cities at the typist’ s
finger tips. It makes possible

written messages to as m any
points as desired, sent simul
taneously by wire.
Shore to ship telephony il
lustrates the Bell System aim
to help people, wherever they
may be, keep within tele
phone reach.
H ook -u p s over long dis
tance telephone wires give ra
dio broadcasts national scope.

May w e send you a copy o f
our booklet, “ Bell Telephone
Securities'1’?

BELL T E L E P HONE
SECURITIES CO. Inc.
195 Broadway, N ew York City

Northwestern Banker

October 1930

32
all prices. The supply o f gold regulates
commodity values. It is eternally true
that when supply and demand are not
artificially influenced that the price level
must follow the harmony of economic law.
W e can never violate economic law with
impunity. The price o f gold (the bank
rate) must follow the supply. W e meas
ure the supply by the per cent o f gold
reserve in the Federal Reserve Bank.
Not to follow the supply by a corrective
rate is a transgression o f economic law.
Let us here note that laws are eternal
truths— that laws are never made— that
we but discover law. Our statutes are but
our interpretations of the eternal and un
changing law. When we, or organized
labor, or the Federal Reserve Board trans
gress that law our prosperity is disturbed
in just the measure o f our defection.
W e can control the price level by a just
rate. We have not always done this. W e
have fixed the price o f credit— not on the
per cent of gold reserve, but we have fixed
it arbitrarily and ignorantly, even crim
inally, under misconceptions that were
terribly devastating in their results. I
said criminally because we have trans
gressed the eternal laws o f justice. W e
aided and abetted the violation o f “ Thou
shalt not steal” by taking twice as much
in production to repay the debt engaged
as it was intended should be paid when

like a

this debt was made as would be simple
justice.
Price Fixing Dangerous
RICE fixing is highly disastrous in
the end as our experience with the
bank rate on commodity prices has proved.
W e have recent examples in coffee, rubber
and the miner’s labor in Illinois coal fie’ ds.
Maintaining the bank rate too low in 1919
and 1920 acted as a powerful and irre
sistible engine o f inflation when our rate
was 4 % per cent when our gold reserve
had dwindled to 42 per cent. Then in one
jump we went to 6 per cent. That rate
increase marked down Iowa land fully
$50 an acre and it ought to interest Iowa
bankers as it left many scarred and
crippled. Then in 1922 w7e kept the bank
rate too high and in July, 1923, our rate
was just 50 per cent higher than the
English and Swiss rate, with our gold
reserve at 80 per cent. That certainly did
the deflation business. The tragedy o f it
all, maintaining a higher discount rate
with a 75 per cent reserve than was in
effect with 45 per cent in gold reserve.
Hosea bemoaned “ My people are de
stroyed fo r lack o f knowledge,” and it is
still true.
The Chicago Journal o f Commerce re
cently charged editorially “ The Federal
Reserve Bank has been dominated by p o
litical considerations since its inception,”

and “ Discount and market operations
have been determined by poJtical expe
diency and reputations.”
Federal Reserve Governor Harding,
Gates W . McGarrah, federal reserve
governor, now head of the Bank for In
ternational Settlements, Mr. McFadden,
Professor Sprague o f Harvard, David
Friday, Reginald McKenna, Adolph Mil
ler of the Federal Reserve Board and
many others have publicly criticized the
credit policy of the Federal Reserve Bank.
W e can ill afford to have such incrim
ination o f our Federal Reserve System.
I believe the Federal Reserve Act ought
to provide a graduated scale made up o f
the best economic minds, determining the
rate o f discount based on the gold reserve.
Ear marking o f gold and shipments o f
gold certificates into the country to cir
cumvent the reserve percentage should be
restricted, allowing the fullest possible use
o f all o f the gold at the lowest rate consist
ent with safe reserves. We cannot afford
to hold idle gold in our competition with
the world. The rate o f discount would be
officially quoted every morning and the
rate should be based unequivocally on the
per cent o f gold reserve. I think that
scale should be made with one-tenth o f
one per cent graduations.
This would
operate to prevent epochal and damaging
changes in business disturbance. Every
one would then have equal opportunity to

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Northwestern Banker

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Federal Reserve Bank of St. Louis

October 1930

33
judge the possibilities o f the future and
we may be absolutely certain that the com
posite judgment o f the business world
would be the best possible basis fo r cor
rect future price values and infinitely bet
ter than any politically dominated and
coerced Federal Reserve Board.
Then
all the world will again live happier and
better and we will not need so many o f
the present legislative palliatives and
nostrums.
By a stricter adherence to economic law
bolshevism and communism will have lost
most of their glamour. Maeterlinck says,
“ W e are all prisoners o f an infinity with
out outlet, wherein nothing perishes and
nothing is lost.” Our undoing is simply
the result o f our transgression o f the
eternal law.
Our Federal Reserve System is the
greatest human agency. To it is entrusted
the greatest power fo r weal or woe.
Rightly directed it blesses mankind with,
constructive power, and inversely, unwise
ly dominated, it can become and has some
times proven to be a terribly destructive
and distributing force. The discount or
bank rate is the governor on our business
machine and the very essence o f its use
fulness is timely correction o f our human
emotions. Its corrections delayed, it a c
tually becomes destructive and its useful
ness is lost.

T h e Chase National Bank
o f the City o f N ew York
P ine Street corner o f N a s s a u

Capital

$ 148,000,000.00

Surplus and Profits

211,318,480.95

Deposits (June 30, 1930)

2,065,434,799.80

A Woman Member
Miss Mary J. Ray, editor, The Union
Trust Teller, Cleveland, Ohio, is the only
woman appointed to the National Pub
licity Committee o f the American Insti
tute o f Banking.
Aubrey 0 . Dooley o f the FederalAmerican National Bank o f Washington,
D. C., is chairman o f this committee and
the associate members are:
Ivan D. Carson, Greenebaum Sons In
vestment Co., Chicago, Illinois
Charles H. Dixon, Commercial Bank,
Spanish Fork, Utah
J. William Elliott, United States N a
tional Bank, Johnstown, Pa.
W . S. Guilford, California National
Bank, Sacramento, Calif.
Mortimore F. Hill, The Chase National
Bank, 45 Street Branch, New York, N. Y.
George D. Jorgensen, Iowa Trust & Sav
ings Bank, Des Moines, Iowa
C. F. Knox, Union National Bank,
Springfield, Missouri
Charles J. Law, New Britain Trust Co.,
New Britain, Connecticut
James McIntosh, The South Carolina
National Bank, Columbia, South Carolina
Harvey T. Parker, The Schmelz National
Bank, Newport News, Virginia
Alfred E. Roberts, Calcasieu National
Bank, Lake Charles, Louisiana
Rudolph J. Rudder, The Southern Bank
er, Atlanta, Georgia
J. L. Seudder, Citizens National Bank,
Waco, Texas
Harry C. Stine, First National Bank,
Kenosha, Wisconsin
Rives Waller, Peoples State Bank, Walla
Walla, Washington
Richard W . Hill, Secretary, 110 East 42
St., New York, N. Y.

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Federal Reserve Bank of St. Louis

DIRECTORS
Albert H. Wiggin
John McHugh
Charles S. McCain
Robert L. Clarkson
Wintlirop W . Aldrich
Harry M. Addinsell
Frank Altschul
Vincent Astor
Gordon Auchincloss
Earl D. Babst
Howard Bayne
Amos L. Beaty
Hugh Blair-Smith
Henry S. Bowers
E. N. Brown
Francis II. Brownell
Kenneth P. Budd
II. Donald Campbell
Henry W . Cannon
Newcomb Carlton
Walter S. Carpenter, Jr.
Malcolm G. Chace
Harold Benjamin Clark
J. S. Coffin
Howard E. Cole
Edward J. Cornish
Harvey C. Couch
Frederic R. Coudert
Clarkson Cowl

Paul D. Cravath
Bertram Cutler
Gerhard M. Dahl
Thomas M. Debevoise
Clarence Dillon
Franklin D ’ Olier
Frederick H. Ecker
Halstead G. Freeman
I . M. Girdler
David M. Goodrich
E. Carleton Granbery
Edward H. R. Green
A . II. Griswold
William E. S. Griswold
Henry O. Havemeyer
Charles Hayden
James N. Hill
Arthur G. Hoffman
Ralph C. Holmes
George H. Howard
Daniel C. Jackling
Otto H. Kahn
Lewis Cass Ledyard, Jr.
James T. Lee
L. F. Loree
H. Edmund Maehold
John R. Macomber
John C. Martin
Thomas N. McCarter

Chas. G. Meyer
Albert G. Milbank
Jeremiah Milbank
George M. Moffett
George Welwood Murray
Joseph D. Oliver
Henry Ollesheimer
Eugenius H. Outerbridge
Thomas I. Parkinson
Frank L. Polk
Robert C. Pruyn
Samuel F. Pryor
Lyman Rhoades
Andrew W . Robertson
Ferdin’d W . Roebling, Jr.
Reeve Schley
Carl J. Schinidlapp
Charles M. Schwab
Alfred P. Sloan, Jr.
Lloyd W . Smith
Robert C. Stanley
John C. Traphagen
Cornelius Vanderbilt
Thomas F. Vietor
George P. Whaley
F. Edson White
Henry Rogers Winthrop

F o r e ig n a n d T r u st D e p a r t m e n t F a c ilitie s

Northwestern Banker

October Í930

Succumbs to Heart Attack
Frank 0 . Wetmore, chairman o f the
board o f directors o f the First National
Bank o f Chicago and the First Union
Trust and Savings Bank, died at his
home in Wheaton, Illinois, o f an acute
heart attack. He was stricken suddenly,
having been at the bank the preceding
day apparently in the best o f health.
Mr. Wetmore was born at Kalamazoo,
Michigan, November 12, 1867. Shortly
thereafter his parents moved to Adrian,
in the same state, where he attended
school. He began his business career by
working after school hours in his father’s
hardware store.
In 1886, he came to Chicago, and since
that time was continuously connected
with the First National Bank o f Chicago.

A fter serving as messenger and book
keeper he was appointed general man
and mastered the detail o f banking by
working in every department. In 1897,
he was appointed auditor, reporting di
rectly to the board o f directors, and from
that time forward his rise was rapid.
In 1904, Mr. Wetmore was elected
assistant cashier and the next year,
cashier o f the First National Bank. In
1907, he became vice president and a
year later was given supervision o f all
the credits o f the bank. Since 1910, Mr.
Wetmore has been a director o f both the
First National and the First Trust and
Savings Bank (now First Union Trust
and Savings Bank). On January 11,
1916, he was elected president o f the
First National Bank, becoming chair
man o f both banks in January, 1925.

National City brings you
complete financial service—
world-wide in scope,
F. O. WETMORE

Your customers want cold
facts . . . on investments
you can get them promptly
from National City.

The National City Com pany
National City Bank Budding, New 1 ork
BONDS

SHORT

Northwestern Banker

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Federal Reserve Bank of St. Louis

TERM

October 1930

NOTES

ACCEPTANCES

The soundness o f Mr. Wetmore’s judg
ment o f men and conditions made him
outstanding as a financier, and he had
that rare executive ability which en
ables a man to direct others in an unob
trusive fashion and almost without giv
ing orders or instructions.
Mr. Wetmore was not only long the
chief executive officer o f one o f the
largest banks o f the country, hut also
took a prominent part in public affairs.
He was active in the work o f the Ameri
can Red Cross fo r many years, and was
chairman o f the Chicago committee to
handle the Red Cross Japanese relief
fund, which he carried to a successful
conclusion. During the W orld W ar, he
was chairman o f the finance committee,
and his plan o f organizing the drive for
funds in the city by wards was the solu
tion o f a most difficult problem and was
adopted fo r the Liberty Loan campaigns.
In recognition o f these labors, he was
elected trustee o f the endowment fund
o f the national organization o f the
American Red Cross. He was vice chair
man o f the Chicago Clearing House
committee, and upon him fell many o f
the burdensome duties o f that organiza
tion.
Mr. Wetmore was president o f the
Federal Advisory Council of the Federal
Reserve Board. He was a member o f the
Chicago Club, the Commercial Club and
Industrial Club of Chicago, the MidDay, Bankers, Chicago Golf, and other
clubs. He was a director o f the Chicago
City Railway Company and its asso
ciated
companies;
Chicago
Surface
Lines; Allis-Chalmers Manufacturing
Company, the Equitable Life Assurance
Society o f the United States, and a life
member o f the Art Institute o f Chicago

35
and the Field Museum o f Natural H is
tory.
In April of 1890, Mr. Wetmore mar
ried Miss Marie Louise Barlow o f Chi
cago, who is his widow. Two sons,
Orville, who died as an ensign in the
navy in 1918, and Horace, were born to
them.
Mr. W etmore’s death marks the pass
ing o f another o f the distinguished line
o f Chicago bankers and financiers o f in
ternational reputation.

Addresses Indiana Bankers
Since the beginning o f history, civili
zation’s advance— social, economic, spir
itual— has been retarded, has even suf
fered setbacks, but always, in due time,
adversity has proved a spur to further
effort and to new achievement, W alter
W . Head, president o f the Foreman-State
National Bank and Foreman-State Trust
and Savings Bank, told members o f the
Indiana Bankers Association at their
convention in Fort Wayne, Ind.
Just as the great war resulted in a
determination on the part o f all peoples
o f all nations to prevent war and to
eliminate the causes o f war, so have the
fires o f adversity resulted in the acqui
sition o f new qualities o f courage, de
termination and energy, with which to
carry on to neAV and greater achieve
ment, Mr. Head declared.
“ Adversity suffered by individuals has
been the means through which the peo
ples o f many nations have triumphed,”
he pointed out. “ Adversity suffered by
nations which stood in the way o f prog
ress has simply signalized the advance
ment o f those whose success spelled a
greater opportunity fo r all mankind.
Even today— in the year o f our Lord
1930— a great drought, the most severe
experienced in many decades, has caused
widespread individual suffering, but, ultimately, means a reduction o f certain
agricultural surpluses which have stifled
agricultural advancement and hamstrung
the prosperity o f a great industry. Not
always,— but so frequently that it be
comes almost an axiom o f history— ad
versity has represented simply the last
stand o f forces which stood in the way
o f progress, which had to be swept aside
or circumvented in order that the hosts
o f the world might march by.”
The change in present-day methods o f
production and distribution has mater
ially altered the position o f the individual
in the economic structure, Mr. Head told
the bankers, adding that, to a large ex
tent, the “ masses” are now becoming the
“ classes.”
It is this intermingling o f
worker and capitalist in one and the same
individual, he maintained, which consti
tutes the salvation o f the present-day
economic order.

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Federal Reserve Bank of St. Louis

CONTACTS QUICKLY TURNED TO PROFIT
In the white areas of the map
above, where the "Magic Car
pet" appears, live the pros
perous, influential families of Los Angeles. Here live the people
with large incomes. They have substantial accounts, large estates
and are the backbone of the securities market. These are the
people who travel. • If you can bring them into the bank to
buy A. B. A. Cheques you have an excellent opportunity to sell
your other services. They must come to the bank personally
to get their cheques, and are in the mood to consider such
services as silver storage, the custody of securities and safe
deposit. They will be quick to appreciate that the pleasures
of their trip will be increased if their affairs at home are
being properly attended to in their absence. • And while
they are away, your contact with them is con
tinued, for they will see the bank’s name on
their A. B. A. Cheques at least once a day—
an important and exclusive A. B. A. Feature.

A B A CHEQ UES
CERTI FI ED
OFFICIAL

TRAVEL

CHEQUE

AMERICAN

BANKERS

ASSOCIATION

Northwestern Banker

October 1930

How Life Companies Should Invest
h e common stock is not a particu
larly suitable investment for life in
surance company funds, said Elbert
S. Brigham, chairman o f the finance com
mittee o f the National Life Insurance
Company and member o f the House of
Representatives from the First Congres
sional District o f Vermont, before the
Mortgage Bankers Association Convention
at Detroit, Wednesday, September 17th.
“ Life insurance companies make a definite
commitment to their policyholders to pay

PAPER

a certain number o f dollars Avhen the pol
icy is due. This means that funds should
be invested in securities having a definite
maturity date when the principal sum is
payable in a definite number o f dollars.
This is not true o f common stocks. P re
ferred stocks, however, do provide fo r re
turn o f principal, and their fixed income
prevents wide fluctuation in price. In the
next decade, therefore, we may expect to
see investments o f larger amounts o f life
insurance funds in preferred stocks, and

P R O F IT S

Assets Doubled

P R O F IT S from the paper and paper products industry in Wisconsin are a
significant element in the balanced industrial and agricultural prosperity
of this state.

In the manufacture of paper, Wisconsin ranks third among all

states with an annual production of more than $87,00 0,0 00 .*

In pulpwood

consumption and the production of wood-pulp, Wisconsin ranks second.
The First Wisconsin National Bank, directly and through its correspondents,
has cooperated in the development of this important industry.
Your inquiries concerning Wisconsin industry and Wisconsin agriculture
will receive the personal attention of our officers.
*87,495,395 in 1927— latestfigure available

FIRST W IS C O N S IN
N A T IO N A L B A N K
M IL W A U K E E
Unit of Wisconsin Bankshares Group

Northwestern Banker

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Federal Reserve Bank of St. Louis

October 1930

it may be possible to devise a plan whereby
a limited portion o f a company’s assets
can be safely invested in common stocks,
but I do not expect to see much change in
this respect.
“ Indications point to more liberal in
vestment laws and practices. Life insur
ance companies in the next decade will
certainly show an increasing per cent o f
their assets in public utility and industrial
bonds and in preferred stocks. Perhaps
there will be inclusion o f common stocks
up to a limited percentage o f a company’s
assets. I do not believe this will decrease
the volume o f real estate mortgages in the
total investment list, but it may decrease
the percentage.

F ROM 1921 to 1928, the assets of
life insurance companies practically
doubled. I f this rate o f growth continues,
we may expect in the next decade a de
mand from these companies for all the
high grade, well secured mortgages upon
farm and city real estate which can be o f
fered. The companies will require that
these loans be adequately margined and
that they net a fair return after all allow
ances for taxes, expenses o f doing busi
ness and risks are taken into account.
Life insurance companies have recently
encountered many difficulties with farm
mortgage investments, but these difficulties
can be overcome by cooperative research
work among life insurance companies and
mortgage bankers to effect safer and bet
ter loans. The only safe course to follow
in making appraisals fo r farm loans is to
determine that the productiton o f the
farm is o f crops suited to its soil, that it
is farmed by a man o f average ability, and
that its produce is sufficient to pay all ex
penses and interest by a fair margin over
a period o f years, provided the produce is
sold at prices which we may reasonably
expect to prevail.
“ Life insurance officials are facing the
problem o f giving policyholders the best
grade o f protection at the lowest price
commensurate with safety.
Practically
all insurance companies charge a level
premium, but the net cost is adjusted by
dividends. This high dividend can be ob
tained only by careful selection o f the in
surance risk, keeping expenses o f doing
business at a minimum, and increasing in
come from investments. The savings of
the people o f the United States exceed the
gigantic sum o f $10,000,000,000 annually.
In 1929, one-fifth o f this annual saving,
or two billion dollars, was entrusted to the
legal reserve life insurance companies of
the United States. No other class o f in
vestment or saving is made by the people
with so little thought o f any chance o f loss

37
as is life insurance. The investment prob
lem o f life insurance companies consists
in sorting out from the available oppor
tunities for investment those which afford
ample security o f principal and fair in
come. Constant appraisal must be made
o f changes in the demands o f people for
goods and services and investment must
be made only in the securities o f those
institutions and industries which give
promise o f supplying the things which will
meet the demand o f the consuming public
in the future. Diversity o f investment is
a wise measure o f eliminating risks. The
mortgage loan still remains the leading
type o f investment for the funds o f life
insurance companies.”

On Eastern Trip
George H. Dunscomb, vice president o f
the First National Bank o f Chicago, left
Chicago on September 27th fo r the Far
East where he will gather first hand facts
to be used in the compilation o f survey
and analysis o f business and economic
conditions as related to American trade
and banking. Mr. Dunscomb will visit
Honolulu, Japan, China, Indo-China,
Siam, Singapore, Java, Australia, New
Zealand and South Africa. He will re
turn home by way o f England.
“ The disturbed political conditions in
China and the decline of silver has
wrought havoc in that country,” said Mr.
Dunscomb. “ One o f the most serious sit
uations there is the fact that Chinese in
dustry is on a. silver production basis
while all importations have to be paid for
on a gold standard basis. The inequality
there is obvious.
“ This is true o f other countries where
the standard coin o f the realm is silver.
Australia’s troubles are the decline in the
prices o f wool and agricultural products
plus the consequent depression o f A u
stralian exchange which goes against
Australia. The bank and its customers do
business in all the countries I will visit
and an up-to-date survey o f present con
ditions and o f the possibilities for trade
expansion may be helpful in the develop
ment o f commercial relations between the
United States and the Far East,”
Mr. Dunscomb, who came to Chicago
as a boy from Coburg, Ontario, where he
was bom, was hired as a messenger for
the First National Bank by the late Frank
0 . Wetmore forty years ago. He ad
vanced through the various posts in the
bank until ten years ago when lie was
elected a vice president, and lias long
been one o f the executives o f the division
handling the accounts o f banks and
bankers.

SO W E CH AN G ED
T O LA M O N T E . . .

W e used to supply only our
largest depositors with checks
made on La Monte National
Safety Paper.

But we found

that a variety of check forms
. . . different sizes, shapes and
colors . . . were confusing . . .
And we lost the advertising and
good-will value that a single,
attractive check form can create.
So we changed to La Monte
for all of our checks. And our
total order was large enough
to warrant incorporating our
emblem into the paper, so that
we now have a distinctly in
dividual check — one that is
pleasing to us . . . and, more
important, to our customers.
If y o u ’re facing this same confusion
of multiple forms, w e ’ll g lad ly help
you to eliminate it.

Let us prepare

for you, free of cost, a sketch show
ing how w ell your emblem would

“ Wlia’s dat new job you ban got on de
railroad, Jake?” she asked.
“ Well, honey, you-all knows de guy
dat goes alongside de train an’ taps de
axles to test ’em?” explained Jake. “ Well,
ah helps him listen!”

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

look in La M onte N atio nal Safety
Paper. A letter— and a sample of
F R E E — An

your emblem — is all that w e need.
G e o rg e La M onte & Son, 6 i
B ro a d w a y , N e w York.

u n u su al

sam p le b o o k o f c h e c k s , L -i4 , m a d e
on

La M onte

N atio nal Safety Paper.

Northwestern Banker

October 1930

P r o fit s fo r Y o u r B a n k
T h r o u g h a N e w S e r v ic e
C o s t in g Y o u N o t h in g
ERE is an opportunity to
produce new and profitable
business for your bank at no added
expense. Matthews & Lewis Co. has
developed a plan which will enable
your present organization, with
out additional space, to furnish:

1. Prompt service on orders to
buy or sell listed or unlisted
stocks or bonds.
2. Comprehensive and reliable
statistical reports on any se
curity.
3. Quotations on any security.

A substantial profit may be realized
from the investment business of
your customers who take advan
tage of the convenience of this
complete service.
About 300 banks in the middle west
are now using the Matthews &
Lewis Plan successfully. The de
tails of this Plan are simple to
describe and we shall be glad to
explain it to you promptly upon
your request.

M a t t h e w s &> L e w i s C o .
Investment Securities
M A T T H E W S & LEWIS CO.
231 South La Salle Street, Chicago.
Gentlemen:
Please send us immediately full information concerning the Matthews & Lewis Plan,
without obligation on our part.

_________________________________________________________________________ _ _ _ ___ _______Bank
City______________________________________________________________ State____________ _________
Attention oj________________________________________________ ________________________________

Northwestern Banker

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

October 1930

Bonds and Investments

The Relation Between Industry
and the
me

HERE is a close con
chases which are not offset
by our imports from them,
nection between in
or by their “ invisible ex
dustrial
conditions
ports” to us, including ex
and the bond market.
Moreover, during recent
penditures o f American
“ Municipalities, as well as corporations,
tourists abroad, remittances from immi
months there has been an increasing in
terest on the part o f the public in conser are now able to issue bonds to good ad grants to their relatives in the old country
vative bonds, according to a recent issue vantage. Since such securities afford the and charges o f foreign shipping com
panies fo r carrying American goods and
o f “ Bond Briefs,” published by the North only medium for long term financing
available to state, county and municipal passengers.
ern Trust Company o f Chicago, in which
governments, the lethargy which until re
appears an interesting article entitled,
“ The sale o f foreign bonds in this mar
cently prevailed in the bond market made ket also has an indirect favorable effect
“ Bonds and Business.”
The article proceeds to analyze the re it exceedingly difficult fo r such units to
upon American business by enabling other
obtain funds for much needed public
vived bond market as follows :
countries to improve their internal eco
works at interest rates which they could
“ The probable effect o f the revived bond
nomic conditions. Due to the interde
afford to pay.
market upon industrial activity is also
pendence o f all nations through trade re
“ This condition has now changed so that
worthy o f consideration.
Corporations
lationships and problems o f currencies
municipalities are able to dispose o f their
and exchange, whatever makes for good
whose financial position justifies are now
bonds on satisfactory terms and employ
business in one country ultimately works
able to finance new requirements or re
for the benefit o f all.
funding o f old securities through the is the proceeds in construction of roads and
streets, schools and other public buildings,
suance o f bonds rather than stocks. This
“ A striking example o f this process is
airports, sewers, etc.
The very large
means a lower cost fo r credit to these cor
the recent $35,000,000 Coffee Realization
volume o f such construction work now in
porations, many o f whom can make funds
Loan o f the State o f San Paulo (United
process or contemplated is another ele
borrowed through bond issues earn a re
States o f Brazil), which is the American
ment o f strength in the general situation.
turn considerably larger than the interest
portion o f an international loan amount
In passing, it may be remarked that the ing to $97,330,000. Its purpose is to
rate on the bonds. This extra return, o f
ease o f issuing bonds in times o f business finance the liquidation o f unsold coffee
course, strengthens the financial position
depression is an important factor in favor
o f such corporations and accrues to the
accumulated under the previous system o f
o f the acceleration o f public building pro government regulation. This attempt at
benefit o f their stockholders through in
creasing the earnings avail
price regulation, now aban
doned, not only failed to
able for dividends. Thus,
“/ n periods of falling prices, such as the present, the pur
protect
coffee
growers
confidence in these com
chasing power of the dollar is increased and bond coupons are
panies and, indirectly, in
from heavy losses but had
worth more in terms of the things which we all use in our
the business situation as a
a depressing effect upon
daily lives. Those who now own bonds purchased some years
whole, is increased.
general business conditions
ago are in a position to benefit particularly from this con
“ The ability o f public
in Brazil.
The
Coffee
dition.”
utility and railroad com
Realization Loan, by mak
panies, in particular, to is
ing possible the gradual
grams in such periods as a means o f com
sue bonds at satisfactory prices is a great
liquidation o f the coffee surplus, is ex
bating unemployment.
factor o f strength in the industrial situa
pected to result in a sounder economic
tion. Many o f these companies are now
position fo r the entire country. I f this
Foreign T rade Stimulated
going ahead with construction programs,
expectation materializes, the purchasing
financed through bond issues, in order to
NOTHER
effect o f the revived bond power o f Brazil will improve and she will
A
market upon business should be felt
be prepared to meet the growing demands
be able to buy more goods in the markets
as the ability o f foreign governments,
for service which the future will bring.
o f the world, including the United States.
This construction work provides, o f
municipalities and corporations to float
Investors Turn to Bonds
course, a great demand for labor and for
loans in this market increases. In this
materials, the importance o f which should way credits will be created in this country
M A N Y investors who have overlooked
the importance of bonds as the
which our foreign customers may utilize
not be underestimated in appraising
foundation o f a well balanced investment
in purchasing our goods, thereby helping
general conditions.
account are now giving attention to the
“ On the other hand, it should be kept
to maintain our industries. W e are sell
in mind that the revival o f the bond mar ing much more to other countries than we
selection o f securities suitable for this pur
ket has not extended, in any significant
pose. Since bonds represent an absolute
are buying from them, at the same time
way, to real estate bonds. Consequently,
obligation o f a borrower to repay prin
raising higher our tariff wall against
building projects o f the type ordinarily
cipal at maturity and a fixed income at
foreign goods. It is, therefore, essential
financed through the issuance o f such se
specified intervals they are, if carefully
that we loan our customers abroad the
curities are still severely handicapped.
funds with which to finance those pur
selected, one o f the most conservative

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

BOND M ARKET

Northwestern Banker

October 1930

40
types o f security. Whatever other med
iums o f investment may logically be em
ployed in particular cases, no investor
who fails to include a substantial propor
tion o f bonds among his holdings is plac
ing himself in the strongest possible posi
tion. The appreciation o f this fact is now
leading many investors to round out their

Frequently the investor takes
counsel from a dealer who is more
anxious to sell
the issues in which he is interested
than in giving impartial advice.
Our only interest is to
consider the client’s requirements
in making a
recommendation.

The W hite-Phillips Co., I nc.
Investm ent Bankers

DAVENPORT, IOWA

accounts by purchasing conservative
bonds.
“ Such investors are adopting a policy
which, if consistently followed fo r a
period o f years, will enable them to ob
tain the most satisfactory results from
their investment programs. In demanding
a high rate o f return, purchasers o f se
curities sometimes overlook the fact that
actual income received, rather than that
which is promised, is the significant factor
in determining the profitableness o f an in
vestment. There are many so-called in
vestment opportunities which promise a
higher rate o f return than that available
on sound bonds, and which may make good
on that promise for a time, only later to
disappoint by reducing income severely
or ceasing entirely to pay. Good bonds,
on the other hand, while offering a less
spectacular yield, pay an assured income
which, if re-invested in the same type o f
security, rapidly increases the capital.
“ Another agreeable effect upon inves
tors who are participating in the renewed
activity in the bond market is the fact
that they will find that the fixed income
which they receive from bonds will pur
chase a larger quantity o f goods and serv
ices than formerly. In periods of falling
prices, such as the present, the purchas
ing power o f the dollar is increased and
bond coupons are worth more in terms o f
the things which we all use in our daily
lives. Those who now own bonds pur
chased some years ago are in a position to
benefit particularly from this condition.”

Higher Returns
Although the average dividend yield
offered by representative high grade com
mon stocks in the month o f August was
but 4.42 per cent compared with 8.15 per

V ------------------------------------------------------------------------------------------ ^

$25,000.00
TULSA, OKLAHOMA
P A V IN G T A X B IL L S A G A I N S T P U B L IC
PROPERTY
Maturities— One-tenth each year.

Denominations— Various

F R EE F R O M F E D E R A L IN C O M E T A X
Secured by assessments against property owned by the
City of Tulsa and the Tulsa School District.

P R IC E — 1 0 2 .H A N D IN T E R E S T ,
T O Y IE L D 6 3 ^ %

Northwestern Banker

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

October 1930

cent in August, 1921, in view o f greatly
changed conditions in the money market,
the current return is as attractive as
that offered nine years ago, it is con
tended in an investment survey released
by Frazier Jelke & Company. The sur
vey points out that the August return
was 53 per cent higher than in Septem
ber, 1929, when the stock yield went as
low as 2.88 per cent.
“ Statistically stated,” says the survey,
“ the yield on common stocks in August,
1930, was 47 per cent higher than the
commercial paper rate, 78 per cent higher
than the time money rate, 103 per cent
higher than the average call money re
newal rate, 32 per cent higher than the
interest return offered on United States
Government obligations, 77 per cent
higher than the New York Federal Re
serve Bank rediscount rate. Preferred
stocks offered a return 25 per cent higher
than the better grade common stocks, and
the corporation bond yield was practi
cally the same as the common stock yield.
“ In August, 1921, a date frequently se
lected by statisticians as the great bar
gain time in common shares, the dividend
yield on stocks was 36 per cent higher
than the commercial paper rate, 36 per
cent higher than the time money rate, 46
per cent higher than the call money re
newal rate, 48 per cent higher than the
New York Federal Reserve Bank rate,
17 per cent higher than the yield on pre
ferred stocks, and 39 per cent higher
than the yield on representative corpora
tion bonds.”
In explaining the reasons fo r the de
cline in interest rates during the past
nine years the survey says in p a rt: “ In
times o f war, when large numbers o f men
in armed forces are engaged in destruc
tion after having been withdrawn from
productive pursuits, and when most noncombatants are engaged in supporting
them, not much new capital is created
and needed improvements are postponed.
Moreover, wars usually are financed by
inflation; and inflation increases the
money cost o f all improvements, causing
each executed project to use up a larger1
number o f dollars o f savings. A world
wide shortage o f capital at the end o f
the Great W ar resulted in interest rates
rising to abnormally high levels, and
staying at high levels until new incre
ments o f capital* accumulated.
“ Since 1918, capital has been created
with unusual rapidity. The entire west
ern hemisphere and almost all o f Europe
have been at peace; the tremendous econ
omies o f large scale production have been
discovered; machinery has replaced hand
labor in countless places; and in most
countries labor has found unusually full
employment. In the meantime there has
been a gradual deflation o f money cost
o f improvements until a million dollars
will go a good deal further in building
machinery, roads, etc., than it would ten
years ago.”

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

Protected by 20 Times
Their Value
in Taxable Iowa Property
No form of investment known today offers greater security
than good Iowa School Bonds.
There is a minimum of at least $20,000 of assessable property
back of every $1,000 bond issued.

And this represents an un

limited levy against all property in the entire school district—
a factor of strength and safety which places School Bonds on
the preferred list among banks and similar institutions.
Through years of specializing in only the highest type of
municipal and county issues, the Carleton D. Beh Company
is especially equipped to serve Iowa banks interested in ultra
conservative securities of this nature.

W rite or phone and

we will gladly send our latest list of attractive recommenda
tions, without obligation.

a r l e t o n

1).

e h

CO.

Investment Securities
Suite 518 Liberty Building

D E S M O IN E S , I O W A
Dial 4-8161

Northwestern Banker

October 1930

Investment Bankers Convention W ill Meet in
A
New Orleans
October 1 2 - 1 5

NEW procedure in its convention
program is announced by the In
vestment Bankers Association of
America in the call for its 19th annual
convention at New Orleans October 12
to 15, which was sent to the 1,967 main
and branch offices o f the Association’s
membership in the United States and
Canada. The program reduces the tra
ditional six-day convention to four days,
opens the pre-convention committee
meetings to all delegates and departs

from the Association’s open-house cus
tom by providing fo r one closed session
o f the convention at which all delegates
will be urged to express their opinion
in a discussion o f the more urgent prob-

A M E R IC A N

lems o f the investment banking business.
Heretofore all sessions o f the Associa
tion’s convention have been open and
complete, verbatim transcripts o f the
proceedings have been distributed to the
press and to all members each day. No
record o f the closed session will be dis
tributed, either to the press or to mem
bers. The purpose is to encourage a wide
participation in the discussions o f the
closed session.
Five special trains will carry the con
vention party to New Orleans. It is
expected that 1,000 will attend.
The
Roosevelt and St. Charles hotels will
house the delegates, with convention and
press headquarters at the Roosevelt hotel.
Opens October 13

S E C U R IT IE S C O R P O R A T IO N
vyinnounces
THE

OPENING
A

OF OF F I C E S

GENERAL

FOR T H E

INVESTMENT

TRANSACTION

BUSINESS

O N E LA SALLE STR EET
Suite

lelephone

3 315

R andolph 9 3 0 2

‘D irecto rs
C e c i l E . V e s e y , Chairman o f the

Boara

F r e d E . A d a m s , President

G u y C. K

iddoo,

Vice President

R a y m o n d A . B a u r , Vice President

M unicipal Bonds
Safety of Principal
A ll Denominations
All Maturities
Tax Exemption
4%

Write for Offerings

SheXuuJiettJSoadßt.
Incorporated 1910

MUNICIPAL BONDS

39 South La Salle Street, Chicago
NEW YORK

Northwestern Banker

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Federal Reserve Bank of St. Louis

DETROIT

October 1930

PHILADELPHIA

HE convention will convene the
morning o f October 13. The address
o f welcome will be by George W. Robert
son o f New Orleans, a member o f the
Association’s board o f governors, and
will be followed by the annual address
o f the president, Trowbridge Callaway of
New York. The closed session will be
on the afternoon o f the same day. E. R.
Black, governor o f the Federal Reserve
Bank o f Atlanta, will address the Oc
tober 14 session on “ The South— an In
vestment Field.” The final session, Oc
tober 15, will give special attention to
municipal finance and at this time Silas
H. Strawn o f Chicago, chairman o f that
city’s Citizens Committee in the recent
crisis in its municipal finances, will
address the convention on, “ Problems o f
Municipal Credit in the Future.” Three
New Orleans golf clubs will be open to
those attending the convention, but all
g olf courses will be closed to delegates
during the four sessions o f the con
vention.

ST. LOUIS

Another innovation in the procedure
o f the Association’s 1930 convention will
be that the thirty-nine members o f its
board o f governors will convene in New
Orleans two days before the opening of
the convention, to consider the reports
to be made to the convention by some
twenty-odd committees. The 200 mem
bers o f committees will arrive with the
delegates October 12 and will convene
immediately. The Association maintains
especially-selected groups, or committees,
o f experts fo r every important division
and problem o f investment banking and
it is to give the entire membership closer
contact with the research work o f these
groups that committee meetings this year
will be open to all delegates. Most of
the committee reports will be summarized
on the floor o f the convention, by the
respective chairman, instead o f reading
an entire report as at previous conven
tions. Complete copies o f the reports

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Federal Reserve Bank of St. Louis

rT"'HE development of a community requires the frequent
concentration and productive use of large sums of invest
ment capital.
Metcalf, Cowgill & Co., Inc., is interested in cooperating
with you in the development of you r community. Your local
business enterprises in all lines of commerce and industry will
find this a progressive and constructive organization with which
to counsel.

Metcalf, Cowgill è? Co., Inc.
207

EQUITABLE

BUILDING

D E S M O IN E S

C hicag o
S io u x F a lls

Sioux C ity
C f.dar R apids

Northwestern Banker

October 1930

will be distributed at the beginning of
the sessions.
The 1930 convention will vote on the
election o f a president, six vice presi
dents, a treasurer, a secretary and twelve
members o f the board o f governors. The
ticket to be presented by the board of
governors is as fo llo w s:
New Officers
RESIDENT, Henry T. Ferriss, First
National Company, St. Louis; ex
ecutive vice president, Alden H. Little,
Chicago; vice presidents, Charles D.
Dickey, Brown Brothers & Co., Phila
delphia; William H. Eddy, Chase Se
curities Corporation, New Y ork ; Bernard

W . Ford, Tucker Hunter Dulin & Co.,
San Francisco; Sidney R. Small, Harris,
Small & Co., Detroit ; William J. W ardall, Bonbright & Company, Chicago;
treasurer, William T. Bacon, Bacon,
Whipple & Co., Chicago; secretary, C.
Longford Felske, Chicago; governors,
Canton O’Donnell, O’Donnell-Owen and
Company, Denver; Ralph Fordon, Guar
dian Detroit Company, Inc., D etroit;
George W . Bovenizer, Kuhn, Loeb & Co.,
New Y ork; Robert E. Christie, Jr.,
Dillon, Read & Co., New Y ork ; Robert
A. Gardner, Mitchell, Hutchins & Co.,
Chicago; Samuel W. White, National Re
public Company, Chicago; Donald O’Melveny, E. H. Rollins & Sons, Los Angeles;

$ 2 8 ,2 0 0

Clarendon Hills, Illinois
6%

Paving Bonds
CLAR END ON HILLS is in Du Page County, Illinois, about 16 miles
southwest of Chicago, directly west of and adjoining Hinsdale.
Transportation is furnished by the “ Burlington,” which operates
40-minute express service to and from Chicago.
Maturities, September 1st— $3,200 annually, 1932 to 1940 inclusive.
Legality approved by Chapman & Cutler, Attorneys, Chicago.

Priced at 100 and interest
Descriptive circular on request

L a n sf o r d § & Co m p a n y
Securities
33 North La Salle Street, Chicago
Specializing in Illinois Local Improvement Bonds
Exempt from all Federal Income Taxes

Northwestern Banker

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

October 1930

Philip T. W hite, Cleveland Trust Com
pany, Cleveland; John R. Chapin, K id
der, Peabody & Co., Boston; Albert E.
Schwabacher, Schwabacher & Co., San
Francisco; Kenelm W inslow, Jr., Seattle
Company, Seattle; Almon A. Greenmail,
First Securities Corporation o f Minne
sota, St. Paul.

Bank Bond Holdings
T THE end o f July, 1930, at a total
figure o f $6,290,000,000, bank
bond holdings were at their peak
fo r all time, $75,000,000 over the form er
peak o f the early summer o f 1928.
This was revealed by Harold E. W ood,
vice president and director o f the Fore
man-State
Corporation,
investment
affiliate o f the Foreman-State National
Bank, who addressed Group One o f the
Michigan Bankers Association at Escanaba, Mich., at a recent luncheon. His
subject was “ Is Present Day Bank Buy
ing o f Bonds Sound?”
The question, Mr. W ood said, is par
ticularly pertinent now when, as in
1924, and again in 1927, the banker,
faced with the problem o f surplus funds,
and low money rates as contrasted with
four per cent on time deposits, turns to
the securities markets fo r relief.
“ M indful o f the losses he took in his
bond account in 1928 and 1929,” Mr.
W ood declared, “ the banker bought tim
idly at first, but the necessity for income
has made him go into the bond market
more and more, until the extent o f pres
ent day bank buying is revealed in the
current report o f the Federal Reserve
Bank. F or the week ended August 20,
1930, there was an increase o f $43,000,000 in the combined corporate holdings
of the twelve Federal Reserve Banks,
and $62,000,000 in governments. F or the
year the increase was $855,000,000, o f
which less than $200,000,000 was in gov
ernment obligations.”
Mr. W ood called attention to the ten
dency to buy far more long time bonds
than seems justified. “ Probably many
are bought through total lack o f policy,”
he said, “ but often from a belief that by
having the greater proportion o f the
portfolio in longer maturities, a sub
stantial profit can be realized. This
amounts to taking ‘a risk position’ and
is the reason why, through the purchase
o f too many long time bonds in 1928,
banks sustained such a loss in the fo l
lowing 18 months. As Henry Swan, vice
president o f the United States Bank of
Denver, has said, “ It has been all too
common in the past, during periods o f
cheap money, fo r bankers who find
themselves with a surplus o f idle funds,
to go into the bond market at the then
relatively high prices and buy long time
bonds in order to get these funds at
work, only to find later, when money is
high and bond prices suffer correspond
ingly, that their institutions either have

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

MILLION
8

CORPORATE
TRUST S H A R E S

CO RPO RATE

O n Jan u a ry i , 1 9 3 0 , there w e r e outstanding

884,000 CORPORATE TRUST SHARES.
On

S e p te m b er

19 3 0 , there w e r e

TRUST SH A R ES
represent an ownership in
terest in these28 companies.
TheChase National Bank of
the City of New York, Trustee

o utstanding

m ore than

8,000,000 CORPORATE TRUST SHARES.

RAILROADS
Atchison, Top. & Santa Fe
Illinois Central
Louisville & Nashville
New York Central
Pennsylvania Railroad
Southern Pacific
Union Pacific

T h e sale o f m o re than

★ 7,000,000 SHARES IN EIGHT MONTHS
is all the m o re r e m a r k a b le in v i e w o f the fact that
s ellin g in the eastern states was a ctiv e ly under w a y

OILS

for less than six m o n th s o f this period.

Standard Oil of California
Standard Oil of Indiana
Standard Oil (New Jersey)
Standard Oil of New York
Texas Corporation

» «
O n J u n e 30, 1 9 3 0 , there was distributed against the

UTILITIES
and QUASI-UTILITIES

79,437 CERTIFICATES

American Tel. & Tel.
Consolidated Gas of N. Y .
General Electric
Westinghouse Electric
Western Union Telegraph

o utstan ding on that date, the sum o f

$7,537,945.78.

INDUSTRIALS

N o t w i t h s t a n d i n g the distribution o f this sum, the
T ru s t e e n o w holds in the C a sh Reserve F u n d for

American Tobacco
Amer. Rad. & Stand. San.
du Pont
Eastman Kodak
Ingersoll Rand
International Harvester
National Biscuit
Otis Elevator
United Fruit
United States Steel
Wool worth

s t ab iliz in g future distributions
MORE

THAN $4,000,000.
H o ld e r s o f C o r p o r a t e T r u s t Shares re ceive all o f
the interest earnings a llo w ed on this h u g e sum.

★

MOODY’S COMPOSITE
PORTFOLIO RATING 'A"

This figure does not include duplication resulting fro m repurchases
and resales but refers only to shares actually outstanding.

O C O
O DD

ASK

INVESTMENT HOUSES AND BANKS OFFER
AND RECOMMEND CORPORATE TRUST SHARES

INVESTMENT

YOUR

HOUSE

OR BANK

about Corporate T rust Shares
»«

S M IT H , BURRIS

& CO.

Central Syndicate Managers

D etr oit

120 S outh L a Salle St r e e t , C hicago

This is one o f a group o f investment trusts sponsored by A d m i n i s t r a t i v e

and

O maha

R e s e a r c h C o r p o r a t io n

Northwestern Banker

October 1930

46
to stay out o f the market or sell bonds
in a period o f hard money at a consider
able loss/
“ Short time purchases avoid this. To
take a mathematical case. I f the cur
rent going- rate is seven per cent, a oneyear six per cent bond only has to de
cline one per cent to be in line with the
going rate, whereas a ten-year six per
cent bond must decline eight and a half
points to reach the current level. It is

fo r this reason that most of us lean over
backwards in suggesting a thirty per
cent limit on bonds running over five
years.
“ Consider the present situation. W e
are in a period o f very easy money, with
the Federal Reserve apparently commit
ted to a policy o f keeping it easy. W e
are also in a period o f industrial de
pression. Are you as a banker prepared
to say that over a period o f time there

will be a very substantial appreciation in
long term, high grade bonds, when fall
seasonal demands and business recovery
result in firmer money? Are you smart
enough to be able to guess the turn to
industrial prosperity and liquidate be
fore firmer money brings a price reces
sion ?
“ There is one Avay to counteract the
danger o f having long term bonds bought
during easy money, when interest rates
advance with business activity. That is
through the purchase o f convertible
bonds which reflect stock market values,
sure to increase at such a time. It is
true the purchase o f high grade con
vertible bonds have proved a life-saver
fo r many bank bond accounts, by a
hedging operation. I refer to such issues
as American Telephone and Telegraph;
Chicago, Northwestern or Southern Pa
cific convertibles purchased at the time
they are initially offered, when they re
flect in their coupon the going rate, and
with a conversion not too far away to
get the full advantage of any extended
advance in the stock market. I f bonds
go off it is usually as the result o f a
condition which makes the conversion
valuable, and if it has no value, it is
because bond prices are steady. It is a
sort o f ‘golden mean’ which provides
against loss through long time invest
ment.”

Bollard Joins Central Trust

W e a r e p l e a s e d to a n n o u n c e th a t

M R. R A Y H U M P H R EY
h a s b e c o m e a s s o c ia t e d w i t h u s in o u r S a le s D e p a r t
m e n t a n d w i l l r e p r e s e n t u s in E a s t e r n I o w a
an d W e s te r n Illin o is, w ith h ea d q u a r
te r s in B u r l i n g t o n , I o w a

A. C. ALLYN AND COMPANY
Incorporated

Investment Securities

100 West Monroe Street, Chicago
N E W YORK
MINNEAPOLIS

Northwestern Banker

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

BOSTON
DETROIT

October 1930

PH ILADELPH IA
SAN FRANCISCO

«
8
1

M ILW AU K EE
ST. LOUIS

W . Irving Bullard, form erly vice presi
dent o f the Merchants National Bank o f
Boston, Massachusetts, has been elected
vice president o f Central Trust Company
o f Illinois. Besides his activities in the
banking field, Mr. Bullard is treasurer
o f the National Association o f Cotton
M anufacturers; Chairman o f the Com
mittee on Aeronautics o f the United
States Chamber o f Commerce; member
o f the Committee on Transportation and
Communication o f the U. S. Chamber o f
Commerce, and chairman o f which is
Fred W . Sargent, president o f the C. &
N. W . R. R .; and member o f the Ameri
can Committee o f the International
Chamber o f Commerce, o f which Silas
H. Strawn is the American vice presi
dent. Mr. Bullard is a director o f a
number o f industrial concerns and is
widely known in banking and business
circles, his range o f experience being o f
national scope.
While with the Merchants National
Bank o f Boston, Mr. Bullard was for
several years closely associated with
Eugene V. Thayer, then president o f the
institution and now chairman o f the E x
ecutive Committee o f Central Trust Com
pany o f Illinois.
Mr. Bullard is a member o f the Union
Club o f Boston, Union League Club of
New York, and Inter-Allied Club o f
Paris. He was a member o f the class
o f 1905 o f Boston University.

Since January 1, W e Have Bought Over

$ ,
8

, 0

Iowa County Primary Road Bonds
The total amount of primary road bonds sold to date by vari
ous Iowa counties to pay for the 1,000 miles of new paving
under construction this year is $ 2 5 ,6 7 5 ,0 0 0 .
Of this amount, Geo. M. Bechtel & Company alone took over
$ 8 ,0 0 0 ,0 0 0 — more than 3 1 % of the total.

Purchase of the

remainder was divided among 22 other firms.

The second

highest amount purchased by a single firm was $ 4 ,2 7 9 ,0 0 0 —
about 1 6 .7 5 % ; the third was $ 2 ,8 3 2 ,0 0 0 — about 1 1 % .
Thus Iowa’ s oldest and largest bond house, specializing in
high-grade Iowa municipals since 1891, registers in a very
practical way not only its interest in Iowa’s progress, but also
its abiding faith in the credit strength of the counties whose
issues it has bought.
Bankers of this and other states are invited to consult us at
any time regarding Iowa municipals. Our close familiarity
with conditions in every part of the state and our long experi
ence with the technical aspects of municipal issues qualify us
to render helpful counsel.
W r i t e to o u r D a v e n p o r t o ffic e f o r o u r c u r r e n t lis t
o f h ig h -g r a d e is s u e s in v a r io u s

m a t u r it ie s .

G eo.M .B echtel &T Co.
Established 1891
Bechtel Building Davenport,Iowa.

First Iowa Trust Bldg.
Burlington

I O W A ’ S

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Federal Reserve Bank of St. Louis

O L D E S T

Equitable Building
Des Moines

A N D

Grand Opera House Bldg.
Dubuque

L A R G E S T

B O N D

H O U S E

Northwestern Banker

October 1930

Time is money— and all headlights no longer are on automobiles. Thanks
to tractor power, night shifts are just as feasible on farms during the busy
season as in factories. This scene shows the McCormick-Deering Farmall
tractor and 2-bottom plow,

We Must Look to

Better Local Business Advice
for Solution to the Agricultural Problem77
— sa ys
— and Mr. Traylor continues:
“ Small rural banks are the back
bone of this country’s economic
soundness, when their responsible
officers are sound on the business
of farming and experienced in the
business necessities for farmers
they serve.
“ Such a banker looks into the
operating profits that Bill Smith
is making, or should be making,
out of his farm even more closely
than he looks into that farm’s
ultimate (and perhaps frozen)
value as a security. He increases
Bill Smith’s annual crop of dollars
— the only real index of Bill
Smith’s prosperity, the prosperity
of the retailers from whom Bill
Smith buys goods and the pros
perity o f the distributors and
manufacturers all over the country
who supply those retailers.”

Melvin A. Traylor

""Y HE three C’s that govern loan-granting— Character,
fl ^ Capacity and Capital — now have an important
_J/ cousin in country credit circles. It is the method o f
Crop production.
Farming is changing. M otors are relieving muscles.
Business analysts are finding a new and surprisingly
accurate barometer for gauging the prosperity o f farming
communities in the acreage farmed with tractors.
For instance, it is being demonstrated in thousands o f
instances that the farmer with as little as 50 acres o f land
needs tractor pow er for maximum profit. The M cCor
mick-Deering Farmall, the all-purpose tractor, has revolu
tionized row -crop farming, replacing 6 to 10 horses and 2
to 3 men on every farm pow er job. It handles planting and
cultivating operations as well as all routine tractor work.
Ask us to send you Tractor Farming, the International
Harvester monthly magazine o f current farming facts, so
that you can keep informed on the progress o f pow er
farming. Accept it with our compliments. Just give us
your home address.
I n t e r n a t io n a l H
606 So. Michigan Ave.

arvester

A M E R IC A
( Incorporated)

om pan y

Chicago, Illinios

McCORMICK-DEERING
Equipment for Every Farming Operation
Northwestern Banker

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

October 1930

Value of Diversified Investments
INCE nothing is more certain than
that a life insurance company will
be called upon some day to fulfill its
contracts, and since the time when it will
be so called upon is reasonably sure, based
upon the probabilities o f death and the
happening o f other contingencies against
which contracts are written, investments
o f companies should generally consist o f
securities having a fixed rate o f interest
and a definite maturity date, it was de
clared by Gladden W . Baker, assistant
treasurer of the Travelers Insurance
Company, in an address before the finan
cial section o f the twenty-fifth annual
meeting o f the American Life Convention
in Chicago, on October 1.
Having as his subject “ The Value o f
Diversified
Investments,”
Mr.
Baker
pointed out that protection to one’s de
pendents and assured provision against
adversity are still probably the most im
pelling motives in the purchase o f life
insurance. He added that “ a policyholder
does not expect to secure this vital pro
tection through allowing his funds to be
handled by a company organized to trade
in securities; nor, on the other hand, if
he desires participation in the ups and
downs o f security speculation, will he be
apt to seek out the services o f a life insur
ance agent.”
The policyholder expects
a life insurance company, Mr. Baker said,
to pay him or his beneficiaries a given
number o f dollars, and he therefore wants
to have his contract in a strong company.
The funds accumulated to meet pay
ments under policy contracts come from
premiums collected in the meantime, plus
interest income compounded at not less
than the assumed rate, and when claims
arise, the principal to meet them must be
intact, it was pointed out, 100 cents on
the dollar.
Mr. Baker regarded it as
essential, therefore, that the bulk o f com
pany investments should consist o f securi
ties having a fixed rate o f interest and
a definite maturity date.
It was stated emphatically that in order
to obtain safety o f principal and a satis
factory income upon accumulated funds,
company investments should be widely
diversified. The spreading of risks and
losses inherent in any one type o f invest
ment was cited as the most obvious result
to be obtained through diversification o f
investments, and in this connection the
speaker stated that the investment risks o f
life insurance companies should not be de
pendent upon the prosperity o f any one
industry or section o f the country.

changes in the general trend o f interest
rates. “ The investment manager must o f
necessity undertake to arrive at some idea,
as to the general trend o f the interest
rates. I f it seems likely that during the
years immediately ahead interest rates
will decline, then he will make invest
ments fo r a long-term, and so avoid the
necessity o f reinvestment after a few years
at lower rates. Conversely, if interest
rates are rising, he will invest fo r a short
term and so have his funds back in hand
at a time when he can invest them to
better advantage.”

A third important result of having a
diversified list of investments enumerated
by Mr. Baker was that o f marketability.
This characteristic o f an investment was
termed important because o f the changes
which have taken place in the character
o f the life insurance business. “ Provision
fo r paying monthly income in case o f
total and permanent disability and for
paying double indemnity in case o f acci
dental death have so expanded the scope
o f the business o f life insurance compa
nies,” he said, “ that it is desirable to have
the reserves held against such risks in-

complete unit

in the production, transportation
and distribution o f natural gas

MISSOURI-K ANSAS
PIPE LINE
COMPANY

What Diversification Means

B Y D IV E R S IF Y IN G investments, it
was explained that companies are
able to spread the maturities o f funds in
vested and to take advantage o f the

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Federal Reserve Bank of St. Louis

Northwestern Banker

October 1930

50
vested in the liquid manner required fo r
a casualty company.”
The experience o f many life insurance
companies during- the past twelve months,
it was explained by Mr. Baker, shows
clearly the advantage o f having a sub
stantial part o f reserves invested in salable
bonds. To the investment problems which
confront the life insurance companies by
reason o f changes in policy contracts and
their liberalization, there have been added
also some o f the problems confronting
banking institutions, and because o f the
two-fold nature o f such problems Mr.
Baker said that there are occasions which
prove the desirability o f having a diver
sified list of marketable securities.
In touching on the subject o f common
stocks as a part o f life insurance invest

ments, Mr. Baker stated that a careful
consideration o f the various factors in
volved seems to indicate that a moderate
amount o f common stocks is permissible
for life insurance companies. It was his
view, however, that the very large advan
tage claimed fo r common stocks over
bonds held during a long period o f years
would not in practice have been fully real
ized by most well informed and skillful
investors.
Any common stocks held
should be carefully chosen and constantly
watched, it was advised, since the point o f
view o f the investor has changed from
that o f a creditor looking principally for
safety and regular income to that o f a
part owner considering future possible
increases in income as well as past per
formances.

Lee, Higginson & Co.
Established 1848

Industries in which investment in com
mon stocks is most suitable were given as
those making an essential product or
rendering an essential service, and prefer
ably those whose products and services
are purchased daily by the consumer and
his family. Like every other portion o f
their investments, it was explained that
life insurance companies will undertake
to buy common stocks at a time when the
current income rate is satisfactory from
the dividend which can reasonably be ex
pected to continue.
As economic conditions over the past
half century have changed from time to
time, the investments o f life insurance
companies have been directed into the par
ticular channels where demands fo r funds
were the most insistent at the time, Mr.
Baker related. Growth of the railroad
network, so important in opening up
farming sections o f the west and south,
resulted in a preponderance o f investment
in railroad securities from 1870 to 1905,
he added. Farm mortgages absorbed an
increasing proportion o f funds from 1906
to 1924, with larger investments having
been made since 1921 fo r the relief o f the
housing shortage and the development o f
public utilities. By recognizing the chang
ing economic forces and by diversifying
their investments, life insurance compa
nies, he said, have not only aided materi
ally in developing the country’s resources
but have also been able to obtain fo r them
selves the financial result necessary for
the maintenance o f the business o f life in
surance on a sound basis.

With Central Hanover

137 W e st Jackson Boulevard
at Ea Salle Street

CHICAGO

BO STO N

NEW YO R K

Higginson & Co.

•

LONDON

Lee, Higginson et Cî*

PARIS

Northwestern Banker

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Federal Reserve Bank of St. Louis

Central Hanover Bank and Trust Com
pany announces that Mark Byron III
has entered the Business Development
Department. Mr. Byron, fo r the past
two years, has been assistant advertis
ing manager o f the Bankers Trust Com
pany and prior to that, he was in news
paper work.
He started his training in his under
graduate days at Ohio Wesleyan Uni
versity as a reporter fo r the Delaware
Republican and the Cincinnati Times
Star and as a circulation representative
o f the Columbus Citizen. Upon leaving
the university, he became a reporter on
the staff o f the Cincinnati Commercial
Tribune. For a short period he was sales
and service manager o f the Mason Towle
Company, automotive distributors o f
Cincinnati. He returned to newspaper
work when he came to New York to join
the advertising staff o f the New York
Times, working subsequently in the ad
vertising departments o f the New York
American, the New York Journal, and the
New York Telegram.
“ Honey, I ’m knee-deep in love with
you.”
“ All right, I ’ll put you on my wading
list.”

October 1930

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Do Not Minimize Risk
—Eliminate It!
Risk can be minimized by judgment combined with
a little luck, or it can be completely eliminated
through the medium of Guaranteed Bonds.
W e recommend 6 % Insured Provident Bonds as af
fording the maximum of safety, and not on the theory
of a minimum of risk.
Provident Insured Bonds bear the endorsement of
two old-line surety companies, insuring to the in
vestor the prompt payment of interest and principal
when due.
In buying Guaranteed Bonds, the investor has the
satisfaction of knowing that risk of principal, delin
quency of interest payments, personal care and finan
cial worry all have been completely eliminated from
his investment program.

Provident State Securities Company
134 North LaSalle Street
CHICAGO,

ILLINOIS

“ BONDS SO GOOD T H E Y CAN BE INSURED”

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Federal Reserve Bank of St. Louis

Dite

DitC.

DOC.

Dite

Northwestern Banker

October 1930

52
“ A fter all, what is $50,000 ?” he asked.
“ Left in the hands o f one it might be a
half million dollars— in the hands of
another it’s $100,000— in the hands o f a
third it means a few short years o f dissi
pation and finally ruin— in the hands o f
still another it puts the children o f some
unscrupulous stock salesman in whom
you are not a bit interested through col
lege. Money in itself is any one o f a
variety of things depending upon who
owns it. Dollars themselves, wdien they
venture out from one generation to
another, are faced with many strange
wanderings. Until the course is defi
nitely charted and a pilot, a Trust, is
employed the past life of those dollars
has availed nothing. 'The future fo r
them is a dismal one. This is the point
the prospect must be made to see.”

With Smith, Burris & Co.
Frederick Doyle, until recently in
charge o f advertising fo r H. O. Stone
& Company, investment bankers o f Chi
cago, has become associated with the
Chicago organization o f Smith, Burris
& Company, central syndicate managers
fo r Corporate Trust Shares.
Born in Louisville, Kentucky, Mr.
Doyle has been engaged in advertising
work in New York and Chicago since
1910. For some years he was assistant
Chicago manager o f the colonization de
partment o f the Canadian Pacific Rail
way, where he had charge o f the pub
licity o f that organization, operating
throughout the United States for the pur
pose o f settling Western Canada. In
1916 Mr. Doyle became circulation man
ager for Women’s World magazine.

Prior to his connection with H. O.
Stone & Company, Mr. Doyle established
the western advertising department of
S. W . Straus and Company. In the Chi
cago office o f that company he handled the
general advertising and publicity fo r all
o f the offices in the middle western and
western cities, giving particular attention
to assisting the dealers in the creation o f
neAv business.
In his new association with Smith,
Burris & Company, Mr. Doyle expects to
devote much o f his time and energy to the
service o f dealers in Corporate Trust

B ond Trading
We specialize in short term securi
ties, packers, and other high grade
industrial bonds, both listed and un
listed.
We maintain markets in
utility bonds and certain utility com
mon and preferred stocks.
Orders executed on any exchange and
quotations cheerfully given.
Our
private wire system extends to New
York, Baltimore, Boston, Philadel
phia, Cleveland and Detroit.
We solicit the opportunity to serve
you in the purchase and sale of either
listed or unlisted bonds and stocks.
Ioiva Representative
M A U R IC E F. LEA H Y
M a n a g e r o f T r a d in g S e r v i c e D e p a r t m e n t

T H O M A S F. FORD

B R O K AW
AND COMPANY

105 South La Salle Street
CHICAGO

Northwestern Banker

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

October 1930

FREDERICK DOYLE

Shares. He states that in his advertising
experience he has found few investment
dealers adequately prepared to originate
business except by means of personal
salesmanship. The possibilities in the
creation o f new business through the use
of the mail in particular, he believes, have
been neglected almost entirely or handled
in a haphazard, hit-or-miss fashion. In
quiry-getting letters, follow-up letters,
circulars, cards and similar material, win
dow displays, dealer signs and other helps
will be provided by Mr. Doyle’s depart
ment. His object will be to give the dealer
in Corporate Trust Shares the same meas
ure o f generous cooperation as that en
joyed by dealers in every line o f mer
chandise. He will, in brief, endeavor to
provide the financial dealer with every
so-called “ dealer help,” these to be har
monized and coordinated with the national
and dealer advertising o f Corporate Trust
Shares.

Just Like a Man
Mrs. Small— My husband is a perfect
brute.
Mrs. Short—You don’t say.
Mrs. Small— Yes, since the baby began
teething nothing would quiet the little
darling but pulling his father’s mus
tache. W ell, yesterday he went and had
his mustache shaved off.

H.M. Byllesby and Co.
INCORPORATED

•

U N D E R WR I T E R S , W H O L E S A L E R S A N D
RETAILERS OF I NVE S T ME NT S E C U R I T I E S
. ». S P E C I A L I S T S IN PUBL I C UTI L I T I E S

DES

MOINES

BOSTON

Chicago

N ew York

2 3 1 S O . L A S A L L E ST.

Ill

• MINNEAPOLIS

• PHILADELPHIA

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

DI RE CT

• ST.

PAUL

BROADWAY

• MILWAUKEE

• PITTSBURGH

• ST.

• PROVIDENCE

LOUIS

• KANSAS

• DETROIT

CITY

• CLEVELAND

PRI VATE WI R E S

CHICAGO

•

NE W Y ORK

•

BOSTON

•

PHI L ADE L PHI A

Northwestern Banker

October 1930

Should Banks Sell Stocks?
O W E V E R market wise the public
becomes, the banker still remains
the investment adviser to the great
majority. The individual with anywhere
from one to many thousand dollars to in
vest likes to talk his affairs over with his
local banker whether in a large city or a
small one. This tendency has brought in
numerable thousands o f inquiries to bank
ers throughout the country, bankers who
have been exceedingly busy with their reg
ular affairs and without much time to de
vote personally to the analysis o f popular
stocks which interest their customers.
Still, bankers have learned, it is neces
sary fo r them to keep apace with the in
terests o f their clients or they suffer
through loss o f business. It was about
ten years ago that the public became bond

N o rth

B y FRED C. M A T T H E W S
Vice President, Matthews & Lewis Company,
Chicago

conscious on a broad scale. Bankers re
acted splendidly to the situation and bond
departments became popular everywhere
with the result that the banks increased
business through this service.
I am confident that the day has arrived
when bankers must enter the business o f
selling stocks. This has not been their
own aim, but it has become necessary be
cause o f the interest o f the public in
stocks. Of course it is a fact that bankers
have purchased stocks fo r their clients
over a period of many years. But the
banker has never before been forced to

A m e r ic a n

T r u st

Sh a r es

The Largest Fixed Trust in the United States

STEADINESS OF RETURN
The large investor, while satisfied with the average return from
common stock investments over a period of years, often requires
the assurance of a definite minimum return semi-annually to cover
specific obligations in his investment program. To illustrate, a num
ber of investors have made arrangements with their banks to pay
their life insurance premiums from the coupon return on North
American Trust Shares ($1,200 annually per unit) and mail the
check for any surplus.
In North American Trust Shares a reserve fund is provided to
equalize this return during depression periods, and thus provide a
minimum return of $1,200 per unit (about 6 per cent on the present
price) despite fluctuating income. The Financial Editor of the New
York Evening Post, William Russell White, has written:
“ Probably the most important feature of a rigid trust, after careful
selection of its portfolio, is establishment of a reserve fund to stabilize
dividends. This was a point stressed by Attorney General Ottinger
in his recent report.”
A tabulation
1930. In only
been necessary
analysis will be
Dividends.”

has recently been prepared covering period 1912 to
one year of this eighteen-year period would it have
to draw upon the reserve fund. A copy of this
sent on request. Ask for “ A Record of Earnings and

We offer an attractive arrangement for bankers desirous of handling
these shares. Write.

Price about $8.25 per share

HARRY H. POLK & COMPANY
Investment Securities
Insurance Exchange Building
DES M OINES
Our current list of high grade bonds can be had on request.

Northwestern Banker

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Federal Reserve Bank of St. Louis

October 1930

make it his business to handle these trans
actions on a large scale.
The wide-awake banker sees this devel
opment. It has been coming fo r a couple
o f years, but within recent months the
demand for information and guidance has
grown tremendously. It signals another
opportunity fo r increased income for
bankers who are ready to render their cus
tomers the service they demand.
Saw It Coming
E SENSED this trend o f affairs in
our office some time ago through
contact with customers in various sections
o f the central west. These customers, in
terested in the stocks we were offering,
wanted to consult their local banker before
purchasing.
Naturally we were called
upon by these bankers fo r information.

In the course o f time we found that it
was necessary not only to educate the cus
tomer concerning the companies whose se
curities we were offering, but also give
complete information to the local banker.
As a result we developed a service to
bankers intended to place before them all
the facts concerning numerous companies
in a loose-leaf form which enabled them to
give their clients a report without delay.
W e found a ready acceptance o f this serv
ice with the result that today 18 banks
in Chicago are using it. In the state o f
Illinois 161 banks take it. In the state o f
Indiana, 14; in Iowa, 44; in Minnesota,
28; in Kentucky, Pennsylvania, Vermont,
Texas, South Dakota and Nebraska, in all
totalling 287.
In numerous cases this service saved
banks the expense o f maintaining special
men to operate stock departments, and
since the service is without cost, it has re
sulted in a great saving to banks and at
the same time has assisted in adding to
profits through the sale of stocks.
Further to assist the bankers we devel
oped a plan which has eliminated detail
fo r him in the handling o f certificates.
Through the use o f special forms, we have
enabled the banker to place orders for
stock one day, receive a confirmation im
mediately and have the certificates deliv
ered to him shortly afterward, already
transferred and ready fo r delivery to the;
customer.
There has been another surprising de
velopment within recent months. Numer
ous banks fo r the first time in their exis
tence, have sent out circulars to their cus
tomers advising the purchase o f sound
stocks fo r investment. This system o f
getting business is not new to investment
banking houses, but is a radical change in
usual bank practice.
The thousands of inquiries we are re
ceiving from banks indicates definitely
that they are enthusiastically going into

55
the business o f selling stocks. It is a
healthy move, fo r it will not only increase
profits during a year when every dollar
counts, but also it will serve as a protec
tion to their stock-minded clients who
might without sufficient counsel lean too
far toward speculation.

Farm Mortgage Loans
Two important but unrelated factors
that should be considered in making a
farm mortgage loan are the personality
and background o f the applicant, and the
character o f the soil on his farm, accord
ing to speeches presented by Geo. F. Heindel, vice president the Phoenix Company
o f Ottumwa, Iowa, and Dr. Horace J.
Harper, Oklahoma Agricultural and Me
chanical College, before the farm mort
gage group o f the Mortgage Bankers
Association Convention at Detroit, Sep
tember 16th.

“ We will always consider the man who
wants to borrow money, but we have no
assurance that that man will continue on
the farm,” said Mr. Heindel in his talk on
“ Making Farm Loans in the New Decade.”
“ Therefore, in addition to considering his
honesty, integrity, and ability as a farmer,
we must consider whether or not lie will
stay on the farm. While this involves the
questiton as to whether farming will con
tinue a desirable occupation, it involves
more strictly the training and experience
o f the man and his outlook upon life.
“ We will always have farms and farm
ers,” Mr. Heindel continued. “ And farm
ing will always be carried on in compara
tively small units by individual farmers.
Therefore, the system o f mortgage finan
cing o f farms must be adapted to the finan
cing o f individual farmers on farms oper
ated by the owner and his family. A good
many o f the difficulties we now have in
the farm mortgage business have grown

out o f the application to this kind o f farm
financing o f principles not properly appli
cable to it, but really pertaining to large
industrial financing.”
In discussing “ Soil Fertility and Its
Relation to Mortgage Banking,” Dr.
Harper named post-war deflation, low
crop producing power o f the soil, several
poor crop years, and most important of
all, acidity o f soil as factors which caused
so many farms to revert to loan companies
during the last few years.
Although the total mortgage debt on
farm land has continued to increase and
was 108 million dollars greater in 1928
than in 1925, and taxes increased and land
values declined during this period, it is
quieting to know that a marked decrease
in the farm debt has occurred in regions
where fertile soils prevail.”
“ That’s a chip off the old block,” said
the man when a bullet grazed his head.

% m\*

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

Originators, Dealers,
Distributors of

HIGH

GRADE

AND

BONDS

STOCKS

A ll Issues Bought — Sold — Quoted

IN C O R P O R A T E D

Investm ent Securities
214 Sixth Avenue

DES MOINES

N orth w estern B anker

O ctober 1930

Financial Suretyship
By

A . M . W IN N

Vice President
Provident State Securities Company

A N Y o f us, who at times have had
occasion to give a bond fo r the
faithful performance o f some
duty, do not fully appreciate the value
o f corporate suretyship fo r the reason
that on the surface it appears easy to
obtain a fidelity bond. However, we as
the insured do not always know of the
care exercised by the surety company in
investigating our standing and o f the in
vestigation made by them before they
obligate themselves to make good any
loss sustained by us under such a bond.
Corporate suretyship was originated to
take the place o f personal suretyship and

OUR
WILL

MAILED

has to a very large extent superseded the
old personal guaranties as to the faithful
performance o f duties, and is now so
broad in its scope as to include every phase
o f human endeavor.
The surety companies write every form
o f casualty insurance, including insurance
against personal accidents, automobiles,
loss by theft, burglary, embezzlement,
breakage o f plate glass, workmen’s com
pensation and many other forms o f strictly
casualty business by which the insured is
protected against loss from a multitude of
causes.
This class o f business is, strictly speak
ing, risk insurance, and the companies ex
pect a definite percentage of losses based
upon experience tables that can be worked
out Avith a fair degree o f accuracy and
which cover many years o f research and
experience.

OFFERING
REGULARLY

LIST
UPON

REQUEST

G M A C obligations
enjoy the protective background of highly
liquid assets, with credit factors widely diver
sifiedinregionandenterprise. Longregardedas
anational standardfor short terminvestment,
theyhavebeenpurchasedbyindividuals,institu
tionsandthousands of banksthecountryover.
available in c o n v e n ie n t m a tu rities and
d en o m in a tio n s at c u r r e n t d isco u n t rates

G eneral M otors
A cceptance C orporation
O F F I C E S

E x e c u tiv e O ffice - B r o a d w

CAPITAL,

P R I N C I P A L
ay

SURPLUS

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

OVER

CI TI ES

a t 5 7 t h S t r e e t - N [ew Y or\ C i t y

AND

UNDIVIDED

$80,000,000

October 1930

PROFITS

There is a higher form o f suretyship
known as financial suretyship or a finan
cial guaranty, under the terms o f Avhich
the surety companies sell a financial serv
ice to those A\Tho require it, and for their
OAvn protection require definite collateral.
This collateral can consist o f either
mortgaged property or the deposit with
the companies o f acceptable collateral
that, in the event o f their having to pay a
loss, would be but a temporary one so far
as they are concerned for the reason that
the sale o f the mortgaged property or the
deposited collateral would reimburse them
for any permanent loss, their financial
guardianship being to afford the insurer
prompt compensation without the neces
sity of awaiting the liquidation o f a mort
gage or other collateral.
Those o f you, Avho as public officials,
have given bonds for the faithful per
formance o f your duties and fidelity to
your trust are not required to deposit col
lateral with the surety companies, but if
you were to become involved in litigation
and desired to appeal against a judgment
which you considered unjust, you would
necessarily have to file an appeal bond,
and in this case the corporate surety bond
would be the one that you undoubtedly
would use inasmuch as individual bonds
in many cases are not acceptable to courts
o f record.
In the event that an unfavorable deci
sion is handed down by the court to whom
the litigant has appealed, the judgment
would be immediately collectible, and the
surety companies would have to make good
on the judgment bond.
They might for many reasons desire to
hold the collateral securing the appeal
bond until they could liquidate it more
advantageously, but in the long run they
would be fully protected against all loss.
Other forms o f suretyship are applied
to first mortgage bonds, and on this type
o f financial guaranty the surety companies
are protected by the mortgaged property
itself, which, in the event o f loss, they can
either liquidate immediately or exercise
their judgment as to the proper time for
liquidation, but in any event they are fully
protected against loss.

F r a c tio n s o f S to ck

“ Every investor knows that a share o f
stock represents a definite fraction o f
ownership in a corporation, but fe\v OAvners o f common stocks would be able to say
extemporaneously just what fraction their
investment represents,” remarks Frazier
Jelke & Company in an Investment Sur
vey released recently.
“ How" much the ownership represented
by one share varies, may be illustrated by
the folloAving fractions: Barnet Leather,
1/40,000 ; Transue & Williams, 1/100,000 ;
Diamond Match, 1/170,000; A. O. Smith,
1/500,000; Lehman Corporation, 1/1,000,000; Burroughs Adding Machine,

57
1/5 ,000,000 ; Union Carbide & Carbon,
1/9,000,743; Consolidated Gas o f New
York, 1/11,457,001; Packard Motor Car,
1/15,000,000; Transamerica Corporation,
1/2 4 ,140,500 ; Commonwealth & South
ern, 1/34,011,010; and General Motors,
1/43,500,000.
“ During the past ten years, and par
ticularly during 1927, 1928 and 1929, the
public has seemed to prefer smaller share
units. In a large number o f cases it has
been shown that the subdivision o f high
priced shares into smaller units through
split-ups has resulted in a considerable
increase in the market appraisal o f a cor
poration.
“ The outstandingly successful company
which has not split up its shares one way
or another is the exception. Twenty-one
leading companies now have approximate
ly 268,104,114 common shares outstanding
compared with 39,145,427 at the end o f
1919, or about 685 shares in 1930 for each
100 shares a little over ten years ago. The
split-up process has made companies sell
for more in the stock market, but smaller
fractions o f ownership obviously have a
smaller share in aggregate earnings and
dividends; and to the extent that earning
power has not kept pace with share in
creases there has been dilution of capital
structure.
“ O f the 833 common stock issues listed
on the New York Stock Exchange, there
are 41 which consist o f 5,000,000 shares
or more. Although constituting less than
5 per cent o f all listed common issues, this
large share capital group includes 49.8
per cent o f all the listed common shares
and on July 1, 1930, contributed 48.8 per
cent o f the market value o f all the now
listed common share issues. Twenty have
more than 10,000,000 shares outstanding
and six have more than 20,000,000 shares.
Is is important to note that these 41
stocks are the ones the public knows most
about. Not only do they represent big
companies, but they are popular; hence
they probably sell at an unpopularity dis
count.
“ Neither size nor capitalization o f a
company determines the merits of its
stock, but the relation between size and
capitalization is important, as is the re
lation between capitalization and possiblities. I f a new process adds $10,000,000
a year to the earning power o f a 500,000
share corporation, the stock (assuming a
ten-to-one ratio) should appreciate $200
a share in the market, but the same devel
opment would mean but $10 a share to a
10,000,000 share corporation. Earning
power and possibilities, after everything
else is said, determine the worth o f a
property regardless o f its capitalization.
Shares are merely divisors.”
The owner of a New York hotel which
burned is in jail. It is believed the fire
was caused by a short circuit in the hotel’s
banking connections.

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

Providing the
Banker with
Dependable
Investment
Service
»

S p e cia lizin g
S e c u r it ie s

in the
of

the

Arkansas V alley N at
ural G a s

C o m p an y

and the lllinois-Kansas
Natural G as Company.

American Bank Bldg.

DAVENPORT, IOWA

Northwestern Banker

October 1930

Program Reduced to Four Days

U R ability to be o f service
to you is n ot con fin ed to
the counsel available
w hen one o f our m an y
ex p erien ced representatives calls
at you r bank.
O ur ban k er clients, the num ber
o f w hich is con stan tly increasing,
find us in close con ta ct w ith them
b y w ire and m ail, so that our fa
cilities fo r in form ation and re
search are at their instant co m
m and.
Y o u w ill find such a service
p leasin g and p rofita b le and you r
ow n custom ers w h o com e to you
fo r a d v ice w ill ap p recia te the a c
curate and d ep en d a b le service—
a con n ection w hich this org a n iza
tion w ill m ake con stan tly avail
able.

^ ■ ° Z ícmüy- ^
INVESTMENT SECURITIES

American Bank Building

Northwestern Banker

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

October 1930

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

A new procedure in its convention pro
gram was announced by the Invest
ment Bankers Association of America in
the call for its nineteenth annual conven
tion at New Orleans, October 12th to 15th,
which was sent to the 1,967 main and
branch offices o f the association’s member
ship in the United States and Canada.
The program reduces the traditional sixday convention to four days, opens the
pre-convention committee meetings to all
delegates and departs from the associa
tion’s open-house custom by providing foxone closed session of the convention at
which all delegates will be urged to ex
press their opinion in a discussion o f the
more urgent problems o f the investment
banking business. Heretofore all sessions
o f the association’s convention have been
open and complete, verbatim transcripts
o f the px-oceedings have been distributed
to the press and to all members each day.
No record of the closed session will be dis
tributed, either to the press or to members.
The purpose is to encourage a wide par
ticipation in the discussions o f the closed
session.
Five special trains will carry the con
vention party to New Orleans. It is ex
pected that 1,000 will attend. The Roose
velt and St. Chax-les hotels will house the
delegates, with convention and press head
quarters at the Roosevelt hotel.
The convention will convene the morn
ing o f October 13th. The address o f wel
come will be by George W . Robertson o f
New Orleans, a member o f the associa
tion’s board o f governors, and will be fo l
lowed by the annual address o f the presi
dent, Ti-owbx-idge Callaway o f New York.
The closed session will be on the afternoon
o f the same day. E. R. Black, governor o f
the Federal Reserve Bank o f Atlanta, will
address the October 14th session on “ The
South— An Investment Field.” The final
session, October 15th, will give special at
tention to municipal finance and at this
time Silas H. Strawn o f Chicago, chair
man o f that city’s citizens committee in
the recent crisis in its municipal finances,
will address the convention on, “ Problems
o f Municipal Credit in the Future.”
Thi-ee New Orleans golf clubs will be
open to those attending the convention,
but all golf courses will be closed to dele
gates during the four sessions o f the con
vention.
Another innovation in the procedure o f
the association’s 1930 convention will be
that the thirty-nine members o f its board
o f govexmors will convene in New Orleans
two days before the opening o f the con
vention, to consider the reports to be made
to the convention by some twenty odd com
mittees. The two hundred members o f
committees will arrive with the delegates
October 12th and will convene imme
diately. The association maintains espe
cially-selected groups, or committees, o f

59
experts for every important division and
problem o f investment banking and it is
to give the entire membership closer con
tact with the research work o f these groups
that committee meetings this year will be
open to all delegates. Most o f the com
mittee reports will be summarized on the
floor o f the convention, by the respective
chairman, instead o f reading an entire
report as at previous conventions. Com
plete copies o f the reports will be dis
tributed at the beginning o f the sessions.
The 1930 convention will vote on the
election o f a president, six vice presidents,
a treasurer, a secretary and twelve mem
bers o f the board o f governors. The ticket
to be presented by the board o f governors
is as follow s:
President, Henry T. Ferriss, First Na
tional Company, St. Louis; executive vice
president, Alden II. Little, Chicago; vice
presidents, Charles D. Dickey, Brown
Brothers & Company, Philadelhpia; W il
liam IT. Eddy, Chase Securities Corpora
tion, New Y ork; Bernard W . Ford,
Tucker Hunter Dulin & Company, San
Francisco; Sidney R. Small, Small & Com
pany, Detroit; William J. Warded, Bonbright & Company, Chicago; treasurer,
William T. Bacon, Bacon, W hipple &
Company, Chicago; secretary, C. Long
ford Felske, Chicago; governors, Canton
O’Donnell, O’Donnell and Company, Den
ver; Ralph Fordon, Guardian Detroit
Company, Inc., Detroit; George W . Bovenizer, Kuhn, Loeb & Company, New
Y ork; Robert E. Christie, Jr., Dillon,
Read & Company, New Y ork; Robert A.
Gardner, Mitchell, Hutchins & Company,
Chicago; Samuel W . White, National R e
public Company, Chicago; Donald O’Melveny, E. IT. Rollins & Sons, Los Angeles;
Philip T. White, Cleveland Trust Com
pany, Cleveland; John R. Chapin, K id
der, Peabody & Company, Boston; Albert
E. Schwabacher, Schwabacher & Com
pany, San Francisco; Kenelm Winslow,
Jr., Seattle Company, Seattle; Almon A.
Greenmail, First Securities Corporation of
Minnesota, St. Paul.

M o o d y 's

&
I

C o m p o site

R a tin g

“A

SELECTED
IN C O M E S H A R E S
.

an o u tsta n d in g

in v estm en t

k
%

i
î

fo r

a n d t h e ir c l i e n t s

ba n kers

. . . .

Selected Income Shares, is a fixed trust composed of 25
of the leading stocks listed on the New York Stock Ex
change, with the unique income building feature of Auto
matic Profit taking showing a computed annual average
return record during the past nine years of more than
21 per cent.
Purchase of Selected Income Shares is an advantageous
method of investing in the country’s leading utility, indus
trial, oil and railroad stocks through one security that auto
matically realizes profits on those stocks and pays you the
proceeds in the form of semi-annual dividends.
In addition to larger returns, Selected Income Shares
offers ready marketability, wide diversification, convenience
and freedom from worry.
Now is the strategic time to buy into 25 of the nation’s
greatest industries through this outstanding fixed trust.
Send for circular giving full
statistical details and records.

New Duluth Office
Another office has been added to the
nation-wide investment-securities organ
ization o f Central-Illinois Company, a
unit o f the Central Group, a branch hav
ing been opened in Duluth, Minnesota,
in September. Mr. O. J. Jorgenson, fo r
several years associated with the Bond
Department o f Central Trust Company
o f Illinois, has been appointed manager.
This branch is under the supervision o f
Sidney C. Nelson, who is in charge o f
the Minnesota territory o f Central-Illinois Company.
First Thug: “ How was that gun I sold
you ?”
Second Thug : “ 0 . K. ; it’s held up in
great shape.”

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

r
III
II

V I C "T O K
5

LT.

'I L L I M A M

C O M P A N Y , INC.
203-205 Fleming Building, Des Moines, Iowa

Northwestern Banker

October 1930

No Cause for Worry

Iowa Municipal
BONDS
and

General Market Bonds
For Bank Investment
and Resale to Customers
2 *

Write for Descriptive Circulars
and Prices.

J A C K L E Y -W lE D M A N & COM PANY
Suite 701-702 Register and Tribune Building
Des Moines, Iowa

Phone 3-5181

BABCOCK, R U S H T O N
& COM PANY
E s ta b lis h e d in 1 8 9 5

C H IC A G O

NEW Y O R K
DES M O IN E S

STOCKS
BONDS
G RAIN & PROVISIONS
M em bers

New York Stock Exchange
Chicago Stock Exchange
Chicago Board of Trade
DES M O IN E S O F F IC E , Second Floor, Flem ing Bldg.
Phone: Dial 4-5121

Laverne M. Barlow, Resident Manager

Northwestern Banker

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

DIRECT PRIVATE WIRES
O r d e r s E x e c u t e d I n A l l M a rk e ts

October 1930

Although to those not familiar with
Latin American evolution and political
institutions the ferment observable at
present in a few o f the republics may be
cause fo r apprehension, interests Avith
important investment and commercial
commitments are not disturbed and antici
pate a bright future for the southern con
tinent as a whole, according- to a statement
issued recently by the Central Hanover
Bank and Trust Company.
“ In general the constitutions o f the
various Latin American republics are
modeled after that o f the United States,”
according to the statement. “ They there
fore do not possess the elasticity o f the
political systems o f European and certain
other countries, where a change o f govern
ment may be brought about by a vote o f
lack o f confidence with resultant decreeing
o f new elections.
“ It has also been characteristic o f some
Latin American republics that the social
structure has permitted retention o f
power by an individual or minority fo r a
number o f years with no practical oppor
tunity fo r change. In certain cases this
has resulted in the overthrow o f the par
ticular government by a military group
and the establishment o f a de facto regime,
which has frequently been recognized
finally as the de jure institution.
“ Events o f this character have created
a belief in the United States that revolu
tion is a part o f the organic structure o f
Latin American republics and that polit
ical changes must invariably be realized
by such a method.
“ Whereas this view is partly justified,”
the statement continues, “ to accept it as
generally true today is to ignore the fun
damental changes that have taken place
in Latin America during the past two
decades and the rapid adjustment to
world advance that is observable.
“ As a result o f the increasing intimacy
o f relations between Latin countries,
Europe and the United States, a middleclass is being created.
Industrial and
business enterprises are developing a large
body o f skilled workers and the rapid ex
tension o f communications by telephone,
highways, airplane, ships and cable, is
dissipating the theories o f colonial times.
Most o f the countries have adopted mod
ern financial practice and Avell considered
budgetary systems, frequently assisted by
American experts, and the very general
development of industrial life is produc
ing a social stratum which is conscious o f
the misfortune that always attends polit
ical turmoil.
“ There is excellent reason to believe,”
the statement concludes, “ that the pres
ent Latin American situation is largely
the result o f economic conditions, and
that it presages the beginning o f a new
era. The notable distinction between pres
ent political changes and those of the past
is that formerly the effort in general was

61
merely to place in power a new group.
Today the demand for change is the result
o f insistence on the part o f the people,
that a solution be found for their economic
problems.
“ This fundamental difference in motives
is the basis fo r the belief entertained by
interests with large commitments in Latin
America, that the republics will emerge
from their present trials much stronger
and with a new set o f ideas regarding their
future development.”

Underwriters and Distributors
of Investment Securities
Complete Brokerage Service
Orders Executed on All Exchanges

Sell Your Bank By Modern
Methods

W B. M£MiMani i f Cd.

(Continued from page 13)
price he pays for it takes care o f itself,
whether this be in the form o f a larger
balance or a service charge.
Until the banker has put the right kind
o f information in the hands and the minds
o f his depositors, he has not done every
thing possible to make every checking ac
count profitable. And here is where ad
vertising comes in.
I f you could personally interview every
checking account depositor and go through
the entire story with him. Show him the
advantages which will come to him if he
is able to maintain a profitable balance.
And at the same time show him the de
velopments which have taken place over
a period o f years. You would then have
little difficulty in securing the agreement
o f that depositor to maintain a larger bal
ance or pay a fee to offset the service.

M em bers Chicago Stock Exchange

The Same Problem
H IS is exactly the same problem
with which every manufacturer is
faced. I f he could personally interview
all o f the individual prospects in all parts
o f the world he would have no trouble sell
ing on that basis. But that is a physical
impossibility so he employs salesmen and
advertising.
The more intelligently he
couples them the greater his returns will
be. So it is with this problem.
The
correct use of advertising and selling prin
ciples enables you to multiply your own
selling power 1,000 or 100,000 fold and
carry your message to these depositors in
a convincing, pleasing way that carries
your own personality with it.
The right kind o f an advertising cam
paign for this problem approaches it
from the viewpoint o f the depositor. It
picks out the outstanding selling points
o f your service and pours these buying
reasons into the ears o f your depositors
in a steady stream— small concentrated
doses o f sound reasoning which appeals
to the depositors self-interest.
Be convinced of the value o f your serv
ices. Know your costs. Establish a sell
ing price that includes a profit. Then go
out and sell the whole idea verbally and
through the printed word to each and
every depositor. Banking is a very profit
able business provided you sell your serv
ices for what they are worth.

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

M em bers New York Curb, Associate

120 South LaSalle St, Chicago
Telephone 'Randolph 3031
£niiimiiiiiiiiiiiiiiiiiiiimiM
iiimiiiiiiiM
iiiiiiiiiiiitimmmiiiiiiiiiiiiiiiiiiiiiiii!iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiimiiimiiiiiiiiiiiiiiiiiiiiiMiimmiiiiiiiiimiiiiiiiiiiiiiimiiiii£

Sound Public Utility Bonds
Yielding from 5.03% to 6.22%
1
|

1
1
|
i
|

N ew Y ork W ater Service C o ., 1st Mtge. 5 s . . . .
Due Nov. 1, 1951
Scranton Spring'B rook W ater Ser ., 1st Mtge. 5s
Due Aug. 1, 1967
I llinois W ater Service C o ., 1st Mtge. 5s............
Due Jan. 1, 1952
Peoples L ight & Power C orp., 1st Lien 5 As . . . .
Due July 1, 1941
O klahoma N atural G as C o ., 1st Mtge. 5s........
Due Feb. 1, 1948

Price

Yield

99^2

5.03%

5.12%

5.45%

96A

5.95%

6.22%
|

Above quotations subject to prior sale and change in price

G.L. O

h r s t r o m

Co.

IN C O R PO R A TE D

|
|

Insurance Exchange Bldg.
DES M O IN E S

Board of Trade Building
CH ICAG O

f
|

l111111>111111111111M
1111111111111111111II11111II1111■111II11[i111111111111111111■111111■11111111111111111II11111■1111111■■11111111■111111II111111111111111111111111111[11]=
rj1111II1111■1111111<11II11111II111111M

American Tobacco Co.
Our statistical department has prepared an analysis of this com
pany’s common stock.
A copy of this analysis may be obtained by asking for C-38.

La m so x

B r o s .
E sta blish ed 1874

&G o .

STOCKS
G R A IN

Members of Leading Exchanges

COTTON

166 W . Jackson Blvd.
C H IC A G O

BONDS

Leased W ires
Tel. W AB ash 2400

N orthw estern Banker

O ctober 1930

As another school year be
gins, it seems fitting that we
once more call attention to
Royal Union’s modern and
complete line of Juvenile
Policies guaranteeing funds
for higher education.
Our Juvenile P o l i c i e s ,
equipped with a special
Waiver of Premium benefit,
provide the necessary col
lege money, whether the
premium payor lives, dies,
or becomes permanently and
totally disabled.
Written from date of birth
up, and on the non-medical
plan.
Full benefit at age
five.
Our salesmen are finding
these Children’s Policies fast
sellers.
Royal Union Life Building
Comer Seventh and Grand Avenue
Des Moines, Iowa

Northwestern Banker

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

October 1930

Insurance

How

'A N Y overlook the
business affairs and con
fact that the selling
serves his estate against de
o f life insurance, as
pletion or shrinkage through
all other selling, is conducted
waste or mismanagement.
primarily for a profit and
His counsel enables h i s
that this profit is largely dependent upon
clients to achieve their life’s objectives.
the building up for the future o f an as
Conservation
sured income, based upon today’s results
— in other words, renewals.
HE third prerequisite is, in the terms
Of all the business in the world, life in
o f the chemist, the re-agent which
B y S. M. AU ER
surance alone is essentially one o f conser
vitalizes the two previous qualifications.
New York City
vation, in that the insurance salesman re
In it lies the real secret o f conservation—ceives only half o f his commission im
without it all the knowledge, all the tech
mediately, the balance being deferred over practice medicine successfully with cal nique, foresight, and good intentions avail
a period o f years in equal annual pay omel and a stethoscope. That time has little. A full day’s work intelligently in
ments.
dulged in is the most important element to
passed. Today intelligent men want facts
It is constantly occurring to me that and reasons fo r any procedure with the achieve success.
“ As ye sow, so shall ye reap” is the rule o f
The farmer Avho harvests the bumper
result that the practice o f medicine has
thumb in this matter o f conservation,
become most highly specialized. Like crop is he who carefully selects his field,
whose prerequisites are; First, profound
the seed and tills his soil. He does not
wise in the life insurance field— men are
understanding o f the purpose and mission
content himself with a superficial plough
today intelligently buying life insurance
o f life insurance; Second, ability to in and it is essential that the insurance agent ing— a sort o f once over. He harrows and
telligently interpret needs o f clients; be able to diagnose his client’ s case in cross harrows and then he plants. He
Third, a willingness to serve beyond the telligently, even projecting into the future
sprays, prunes, cultivates, and then finally
delivery o f the policy and the collection
harvests the crop so richly deserved and
events liable to occur at an uncertain
o f the first year’s premium.
earned.
time.
With reference to the first, to under
To avoid a high lapse rate will always
Premium rates, net costs, dividends the
stand life insurance is not the most im working tools o f the insurance man, in the require constructive business ability; a
portant or most difficult obstacle. Any
age o f the family doctor with his calomel true understanding o f the policyholders
average man willing to make the effort and stethoscope, have given way to the needs; and a real interest in his welfare.
can master the technical requirements o f
The overcoming o f a high lapse rate can
underwriter who now talks about—•
this or any other science. Just as no
(a) Food, shelter, and clothing for only emanate from the realization on part
lawyer, doctor, or engineer would attempt
o f every insurance man that he serves him
Tom, Dick, and Mary.
to practice his profession
self best who serves his
or hope to achieve any de
clients longest. — From
gree o f success without first
“ Conmutopics.”
"O f all the business in the world, life insurance alone is
equipping himself with the
essentially one of conservation, in that the insurance salesman
knowledge o f the funda
receives only half of his commission immediately, the balance
Visits M oth er’ s H om e
mentals o f his elected voca
being deferred over a period of years in equàl annual pay
The thrill of visiting in
tion, so would it be just as
ments
the house, in far off
foolhardy for a life insur
Utrecht, Holland, where
ance salesman to hope to
(b) A fixed life income for Mary’s his mother was born and spent her early
achieve permanent success with a funda
mother.
childhood, came to President General S.
mental knowledge o f life insurance.
(c) A permanent home fo r Tom, Dick, Nollen o f the Bankers L ife of Iowa while
and Mary, assured by putting a visiting abroad this summer.
K now Your Client’s Needs
cancellation clause in the mort
With Mrs. Nollen and two daughters,
HE second prerequisite, the ability
gage.
the Bankers Life president spent several
to interpret the needs o f his clients,
(d) A pension fo r the “ old man” him days in Holland, most o f that time at
differentiates the good salesman from the
self.
Utrecht. He found the house in which
mediocre one. I f he can successfully in
(e)
Money
fo r future delivery.
his mother was born, and which she left
terpret the needs o f his clients, it follows
(f ) An immediate estate by contract in 1847 at five years o f age to come to the
that he can also exercise the same powers
to be paid fo r on the installment United States, to be exceptionally well
o f analysis in the selection o f those whom
plan.
preserved. It is a stone house of some
he would serve. The choosing o f proper
(g)
Economic security fo r all time.
twelve rooms fronting directly on the
prospects is o f equal importance to ad
(h) A stock liquidation plan fo r the street with the back yard devoted to a
ministering properly to the needs o f those
stockholder in a closed corporation.
typical Holland garden, ending at a canal.
clients. The basis o f the conservation o f
(i) A certificate o f moral integrity,
The house is now a home for aged people.
business is grounded in this particular
financial stability, and physical fit
faculty to interpret these needs and to
Returning to Des Moines from his two
ness.
properly administer to them from the
months abroad, President Nollen related
standpoint o f life insurance.
In other words, the agent o f today ad his visit to his mother’s home as one o f
Before a doctor can prescribe treat vises and arranges the economic security many interesting incidents o f his visit
ment, he must first diagnose his patient’s o f those dependent upon the breadwinner abroad.
particular affliction. There was a time
A fter landing at Boulogne, the Nollen
o f the family. He safeguards his clients’
when the old family doctor was able to
personal obligations. He winds up his family spent a week in Paris, then went

t o

v o id

L a psa tio n

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Federal Reserve Bank of St. Louis

N orthw estern B anker

O ctober 1930

T urning
D efeat
into

V ictory

on to Holland and flew from Amsterdam
to London. The greater part o f their visit
was spent in England, touring through
that country.

Des Moines L. and A. Convention
The Des Moines Life and Annuity In
surance Company, one o f Iowa’s strong
and progressive institutions which in re
cent years under the able direction o f J. J.
Shambaugh, president, has been making
such splendid progress, recently held a
very interesting company convention at
Lake Okoboji, which was attended by ap
proximately 200 o f the company’s agents,
officers and directors.
This meeting followed the president’s
trip which is taken every year by a se
lected group o f the company’s leading
producers who are complimented with the
trip after having produced a certain quota

\ A /e l c o m e
TO

NEW YORK

AND

THE
E\o t e l

©VERNOR

G inton
51 - ST cm, 7-AVE.
OPPOSITE
PENNA. R.R. STATION

No agent can sell all
forms of policies all of the
time.

But

what

agent

hasn’t written cases where
an out-of-the-ordinary pol
icy— and only that policy
— fills the bill?
The NWNL rate book
contains every type of life
insurance policy for which
there is a human need.
You may talk ordinary life
five days out of the week,
hut the sixth day you will
run into a case which de
mands something else.
With
celled

NwNL’ s
policy

unex

kit,

a re

sourceful agent will turn
an apparent defeat into
victory.

Northwestern National
U F E INSURANCE COMPANY
O .J . ARNOLD, President

S T R O N G '*' Minneapolis.Mlnn. -L I B E R A L

N orthw estern Banker

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Federal Reserve Bank of St. Louis

O ctob er 1930

J. J. SH AM B AU G H

and volume o f business. The president’s
trip covered a large part o f the most in
teresting territory in and around Denver,
including Estes Park, Colorado Springs,
Grand Lake, Denver and Troutdale. This
trip is a part o f the company’s educational
program which was participated in by
nineteen of the Des Moines Life and A n
nuity’s agents.
The Okoboji convention was a threeday affair, and the feature speaker o f the
meetings, as well as the leading banquet
orator, was Mansur B. Oakes, known in
insurance circles as being one o f the best
posted sales and educational directors in
the business.
In addition to Mr. Oakes there were
talks made by the company’s officers in
cluding an address by President Sham
baugh.
The Des Moines Life and Annuity has

Apre-eminentHotel
of 1200Roomseach
having Bath, Cir
culating Ice Water
andmany other in
novations featuring
a sincere spirit of
hospitality.
ROOM AND BATH $3 UP

65
enjoyed splendid business during all o f
1930, and not only in Iowa but in the other
states where this company operates. Its
Missouri agency is at the present time the
leading producing unit o f the company.
President Shambaugh is thoroughly
optimistic regarding the outlook for fall
business.
He has traveled extensively
through the agricultural district, is in in
timate contact with conditions, and be
lieves that all business, and especially the
life insurance business, will prosper in all
the agricultural sections o f the country.
O m aha

G en eral A gen cy

Announcement o f the election o f George
R. Whitlock, o f Lincoln, Nebraska, as
president o f the H. O. Wilhelm & Com
pany, general agency at Omaha, fo r Ne
braska and southwestern Iowa for North
western National Life o f Minneapolis, has
been made by O. J. Arnold, president of
the company.
The election o f Mr. Whitlock, at pres
ent superintendent o f agents for the Lin
coln Liberty Life, fills a vacancy created
by the death o f Homer 0 . Wilhelm, presi
dent o f the agency which he founded 14
years ago. Mr. Whitlock, who is 39 years
old and a native o f Texas, started in the
life insurance business in April, 1919, as
local agent at Superior, Nebraska, for the
Equitable Life o f New York, after four
years’ service abroad as a volunteer in the
Canadian army. His ability as a personal
producer and organizer won for him
steady advancement and he joins North
western National L ife’s Agency Organi
zation with 11 years’ experience in Ne
braska as personal producer, supervisor
and manager.
T h e a t r e T a k e s U n i q u e In s u r a n c e

Warner Bros., Hollywood, Calif., thea
tre has a $300,000 policy covering any
member o f the audience chancing to laugh
fatally. The policy was written by the
Behrendt-Levey-Rosen Company and is
said to he the second such policy which has
been written in the Los Angeles area.

Casualty
Insurance^

Yes!
Surety Bonds ?

Certainly!
Service^

Absolutely!

A C o u r t D e c is io n

Where an insurance policy expressly
provided for the payment o f indemnity
for total and permanent disability “ after
receipt o f p roof and on each anniversary
thereafter,” the insured is not entitled to
disability benefits for the entire period of
disability, including the period prior to
the presentment o f proof, but only for
the period subsequent to proof, according
to a decision o f the Washington Supreme
Court in Jones vs. NeAV York Life.
L ap ses

A systematic, thorough canvass o f
lapsed business from a revival standpoint
will reveal a wealth o f opportunity. It
will create more prospects. It will lead
to new business.

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Federal Reserve Bank of St. Louis

W rite to

Federal Surety Company
W. L. TAYLOR
President

Home Office, Davenport, Iowa
Northwestern Banker

October 1930

W. L. Taylor with Day Fleet
OL. W . L. TAYLOR, widely known
as “ Uncle Bill,” president o f the
Federal Surety Company o f Dav
enport, Iowa, has resigned from that posi
tion to become executive vice president of
the Chicago Fidelity and Casualty Com
pany, o f which Darby A. Day is president.
He will move to Chicago in the near future
to make his home there.
“ Uncle Bill,” as he is known to the en
tire agency force o f the Federal Surety,
has been general manager o f that com
pany since 1920. Control o f the Federal
Surety recently passed into the hands of
eastern interests allied with the Lloyds
Casualty and Percy Biglin o f New York
came to Davenport as comptroller and vice
president. Col. G. W . French o f Daven

port, has been made a director to succeed
Mr. Taylor and Ray Nyemaster, Daven
port banker, has been elected chairman of
the executive committee, succeeding Mr.
Taylor. The Federal Surety lease in the
Kahl Building was also renewed for five
years.
In announcing that Mr. Taylor Avill
have general supervision o f the operations
o f the Chicago Fidelity and Casualty Com
pany, President Day said:
“ Colonel Taylor needs no introduction
to the insurance fraternity. He started
his insurance career in the middle west
25 years ago as special agent and has step
by step gone through every branch of the
casualty and surety business. Prior to
accepting the general managership o f the

W . L. TAYLOR

There’s Something in —
Experience

— and C e n t r a l
Life, now in its 35th year, has shown steady,
substantial growth every year since the
founding of the company. Insurance in
Force is nearly $200,000,000.00; Assets
more than $32,000,000.00.

Traditions

—
and every officer,
director and employee of the company is
pledged to uphold the standard of service to
policyholders which has won priceless good
will, and a widespread reputation among
banker friends as “ A Good Company.”

Central
Life
A s s u r a n c e S o c ie ty
(MUTUAL)

T. C. DENNY, President
DES MOINES

Northwestern Banker

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Federal Reserve Bank of St. Louis

October 1930

IOWA

Federal Surety in 1920, he was for several
years a member o f the executive staff of
the Massachusetts Bonding and its home
office. Colonel Taylor has been a staunch
supporter o f the American agency system.
He is a strong believer in bureaus and rat
ing associations. He never participated in
rate Avars and is held in high esteem by
the officers o f competing companies.”
Mr. Day recently resigned as Chicago
manager for the Union Central Life to
devote his entire time to the Chicago Fidel
ity and Casualty and the other companies
o f Avhich he is executive head. These in
clude the Fire Insurance Company o f Chi
cago, Continental Indemnity, the Darby
A. Day Investment Company and the
Automobile UnderAvriters Insurance Com
pany o f Dallas.
N e w V i c e P r e sid e n ts

H. B. W oodcock has been appointed
vice president and superintendent o f agen
cies fo r the National Surety Company,
and Sherman G. Drake has been made vice
president and production manager o f the
same company. Both men have been con
nected with the National Surety for some
time, Mr. W oodcock as assistant superin
tendent o f agents, and Mr. Drake in charge
o f burglary production until last year
when he became connected with the agency
department.
Mr. Drake is well knoAvn in Iowa insur
ance circles, since he joined the National
Surety in 1921 as an adjuster in the bur
glary department for Iowa, prior to Avhich
time he Avas connected with the insurance

67
department o f the Iowa Bankers Associa
tion, with headquarters in Des Moines.
T o S ta y in D a v e n p o r t

Officers o f the Federal Surety Com
pany, o f Davenport, following the accept
ance o f the resignation of President W. L.
Taylor, who becomes executive vice presi
dent o f the Chicago Fidelity and Casualty
Company, have announced that the home
office o f the Federal Surety Company will
remain in Davenport where the company
has just secured a five year renewal of
their present quarters in the Kahl Build
ing. Ray Nyemaster, Davenport banker,
becomes chairman o f the company’s execu
tive committee and Col. G. W . French be
comes a director. In a special statement
Colonel French said:
“ The meeting was harmonious and the
results entirely satisfactory to the Daven
port directors. The New York directors
opened the proceedings with statement
that no motion or resolution would prevail
without the majority vote o f the Daven
port group. The company is now in bet
ter position to make money for the stock
holders than at any time since its organi
zation. The home office will continue in
Davenport with a branch in New York
City. Very few, if any, changes will be
made in the force.”

for second place with the great amateur,
George Von Elm, in the National Open at
Minneapolis in July, and last month tied
fo r seventh place with Tommy Armour in
the ten thousand dollar open tournament
in St. Paul, where he was the ranking
amateur.

H o ld A n n u a l P ic n ic

Members o f the Trust department o f
the Foreman-State Trust and Savings
Bank and their families participated in
the department’s annual picnic held Sun
day recently at the Lush estate, Lemont,
111. The 300 present took part in the
golf, baseball, horse-shoe pitching and

other athletic contests.
Theodore T.
Weldon, second vice president o f the
Foreman-State Trust and Savings Bank,
captured low net honors in the g olf tour
nament and tied fo r low gross with Don
ald Bissell.
In the women’s g olf competition Ade
laide Leibold took first honors, Joyce
Hughes, second, and M. Ruth Wickham,
third.
Judges in the many contests included
M. E. Feiwell, vice president o f the Fore
man-State Trust and Savings Bank;
Anan Raymond, vice president o f the
trust department; George E. Fink; C. L.
H all; J. T. Keckeisen and Lewis C.
Coyner.

B e c o m e s S ta te A g e n t

Appointment o f Wade K. Wissler as
state agent for the Automobile o f Hart
ford and the Standard Fire in the Ne
braska-South Dakota field, has been an
nounced by G. W . Funk, western manager.
He succeeds R. H. Baldwin and will have
headquarters in Omaha. Mr. Wissler has
had both underwriting and special agency
experience and is at present connected
with the home office o f the National
American Fire o f Omaha.
N ow

a L i f e U n d e r w r ite r

A recent entrant in the life insurance
business is Johnny Goodman, o f Omaha,
the lad whose name was carried into the
homes o f millions o f people last year
when he eliminated the great Bobby Jones
in the National Amateur Golf Tournament
at Pebble Beach, California, in the first
round.
Johnny is representing the Omaha
agency o f the United Benefit Life Insur
ance Company and its running mate the
Mutual Benefit Health and Accident Asso
ciation o f Omaha, and is making good at
the job.
Since the days o f the rapid rise o f
Bobby Jones in golf circles, no youngster
has more quickly pushed his way into the
select rank o f topnotch golfers than
Johnny Goodman.
Ranked tenth last
year by the U. S. Golf Association, his
competitive record this year will probably
place him much higher than that. He tied

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Federal Reserve Bank of St. Louis

/ /

Business Is Good

/ /

Cooperators W ill Tell You
W i t h a p o lic y f o r e v e r y n e e d — w ith h o m e office s u p e r
v is io n

a n d h e lp

th a t b u ild s a g en t e a r n in g p o w e r — w ith

tested sales p la n s th a t m a k e f o r ea sie r se llin g — a n d w ith
a c o n sta n t h o m e office fo llo w -u p

am ong

p o lic y

h o ld e r s

a fte r th e b u sin e ss is p la c e d — D e s M o in e s L i f e a gen ts are
fin d in g th e ir c o n tr a cts h ig h ly p r o fita b le .
T h e D e s M o in e s L i f e a gen t in y o u r c o m m u n it y is a n x io u s
to serve y o u a n d y o u r d e p o sito r s.

H e ’ll b e g la d to te ll

y o u m o r e a b o u t th is c o m p a n y a n d th e p o lic ie s it o ffers.

DES

M O IN E S

L IF E

& A N N U IT Y

J. J. S H A M B A U G H , President
DE S M O I N E S , I O W A

Northwestern Banker

October 1930

ts
This department of TH E N O R TH W ESTE R N B A N K E R is to
assist subscribers in obtaining goods or service hard to find.
It is free to subscribers. To non-subscribers the charge is
five cents per word. Use it. A S K 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 o f charge. In answering classified
advertisements which have key numbers please enclose a
two-cent stamp. This is used to forward your letter.
Wanted— Position as Assistant Cashier
or Teller in country or city bank. Ten
years banking and receivership experi
ence. Married, age 30. Available on
thirty days’ notice. Best reference. A d
dress No. 3148, care Northwestern
Banker.— 10-TF.

g . e il e r s
had a 20 acre field
that was earning him
only $ 10 0 .0 0 per year
because it was too wet
for anything but poor
pasture. H e tiled it at
a total cost of $475.00.

For Sale— A Mosler screw door, triple
lock safe, in good condition. For sale on
account of consolidation of two banks.
Address No. 3147, care Northwestern
Banker.— 10-TF.

r ed

The next year that field
produced 70 bushels of
corn to the acre which sold
at 70 cents for a total of
$980.00.
Thus the first
year’s crop repaid the total
cost of tiling and left in his
bank account five times as
many dollars as the field
had ever earned him before
in one year.
Since then Mr. Eilers’ in
come from that field has
varied some what with the
crop planted and the mar
ket prices, but always it has
been several times as much
as before the field was tiled.
Tile drainage will in
crease the income of your
customers who have wet
fields or spots on their
farms. Thus it will increase
the funds handled through
your bank, and so the
profits you earn.
Thorough tile drainage
will go far in solving the
farm problem of your trade
territory.

M A S O N C IT Y BR ICK
and TILE C O M P A N Y
Denison Building
M A S O N C IT Y ,

Northwestern Banker

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Federal Reserve Bank of St. Louis

IO W A

October 1930

Enjoy Omaha Hospitality
at

The Fontenelle
Omaha’s Finest Hotel
HE Fontenelle is the Social
and Civic Rendezvous, the
Hub of Business and Pleasure
Travel and the Center of Things
Going On in Omaha.

Noted Dance Bands Play
Noon and Nightly in
the Main Restaurant.

350 Rooms $ 3 to $ 5 350 Baths

"Omaha’s
Welcome to the
World”

Cashier o f country bank would like to
make connection with city bank as assist
ant cashier. Can furnish A -l. references.
Moderate salary expected. Married and
steady. Address No. 3149, care Northwestern Banker.— 10-TF.________________
Position wanted — In good bank or cor
poration where there is good opportunity.
Fifteen years experience, ten as cashier.
Can make small investment if necessary.
References will be furnished. A ge 39,
married, Protestant. Address No. 3150,
care Northwestern Banker.— 10-TF._____
W anted — Broker or small Investment
Banker in Iowa to underwrite or assist in
underwriting a $500,000.00 First Mort
gage Gold Note Hydro-Electric security.
Address No. 3151, care Northwestern
Banker.____________
College Graduate with two years’ expe
rience as Assistant Cashier, desires posi
tion in a bank. Has just received Master’s
degree at Ames, with Economics minor,
having taken courses in Money and Bank
ing Investments, and Corporation F i
nance. Can furnish references. Address
No. 3142, care Northwestern Banker.—
9-10._____________________________________
For Sale— Brandt cashier late model,
automatic return carriage poster (Bur
roughs) vault doors, fixtures, safes, filing
equipment, anything you might want. A
few sections excellent safety deposit
boxes.
This equipment out of closed
banks over the State. Address No. 3143,
care Northwestern Banker.— 9-10._______
Position wanted as cashier in a good
bank of 1000 population. Thirteen years’
executive experience in country bank.
Highest references from bankers. Age
32. Law trained. Now cashier. Can in
vest if necessary. Address No. 3139, care
Northwestern Banker.— 7-TF____________
Position wanted as assistant cashier
in country bank in North Dakota, South
Dakota, Minnesota or Iowa. Three years
banking experience. A ge 24. American.
Can speak Norwegian and understand
German. Thoroughly familiar with gen
eral banking routine, including insurance.
Register o f Deeds in South Dakota one
term. Highest references from bankers
and South Dakota Banking Department.
Address
No. 3138, care Northwestern
Banker.— 7-TF.__________________________
Position wanted in a good Iowa bank.
Twelve years experience, ten as cashier
of a $50,000 bank. Can handle all angles
of banking, including insurance and real
estate.
A ge 36. Married. Protestant.
Address
No. 3140, care Northwestern
Banker.— 7-TF.__________________________
Young Lady desires position in bank,
preferably in Iowa. A ge 18, Protestant.
Has finished commercial school, and has
taken typewriting, shorthand, and Post
ing Machine. Working in bank at present.
Address
No. 3141, care Northwestern
Banker.— 8-TF.

South Dakota
Bank New s
Officers South Dakota Bankers
Association

A s s is ta n t V i c e P r e sid e n t

“ The Review contains little direct solici
tation o f business. It mentions a number
o f people by name in each issue. There
is considerable o f a light nature in it.
“ Advertising is ivhat wTe say about our
selves. Of much more importance is what

Secretary................... George A, Starring
Huron
Treasurer.............................Don W. DeVey GEORGE H. STARRING
Westport
Secretary

The Security Bank & Trust Company
and
Farmers & Merchants National
Bank o f Webster, South Dakota, the two
largest banks in Day county, have de
cided to use the new system in discour
aging bank robberies, which are so com
mon in the northwest.
They will carry only a limited amount
o f cash on hand, keeping surplus funds
in reserve city banks where funds are
guarded day and night. Customers Mush
ing1an unusual amount o f cash will make
it known a few days ahead.
D is p o s e s o f In te r e st

A change has just been made in the
personnel o f the Home National Bank,
o f Dell Rapids, South Dakota, Frank
Enright, who has been president fo r the
last ten years, disposing o f his interest
to other members o f the present board
o f directors and resigning his position as
president and director. Frank Ginsbach,
who has been vice president, was elected
president, and Fred Bowles as vice pres
ident. P. R. Keneflck remains as cash
ier and P. J. Enright as assistant cashier.
The present board o f directors is com
posed o f Frank Ginsbach, M. C. Eulberg, G. A. Grant, H. O. Oien, F. C.
Bowles, G. R. Krause, W . W . Briley,
T. E. Johnston and P. R. Keneflck.
In c o r p o r a te

Two Huron men, F. D. Green and
C. W . Boteler, are among incorporators
o f the Security National Corporation, a
$500,000 banking and investment com
pany which will have offices at Huron,
South Dakota. Articles o f incorporation
filed with the secretary o f state listed
P. J. Leeman, L. W . Scholes and L. B.
Hogue, all o f Minneapolis, as the other
incorporators.
The corporation may
have business offices at Minneapolis.

R e d u c e s S u p p ly o f C ash

Lake Andes’ only bank, the Farmers
and Merchants Bank, has joined with
300 banks o f South Dakota in adopting
the suggestion o f the State Bankers Asso

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Federal Reserve Bank of St. Louis

(Continued from page 26)

A lfred Brittain, Jr., has been elected
assistant vice president o f Central Trust
Company o f Illinois. Mr. Brittain came
to the bank from the Steel & Tube Com
pany o f America in March, 1923. He
was appointed manager o f the credit de

Vice President....................J. W. Bryant
Mitchell

D is c o u r a g e B a n d its

B u d d in g P u b lic C o n fid e n c e

bank, its personnel, methods and manage
ment, while such professional advertising
service as the ordinary country bank can
afford to buy must be written for a con
siderable number o f banks and be general
in character.
“ The central idea in everything written
for the Review is that of inspiring confi
dence. We tell o f the character o f our
local loans, the kind o f security required,
and their small average size. We talk
about our bond account and its value as a
secondary reserve; about our capital, sur
plus and undivided profits; but always em
phasizing that the chief strength of the
Lank lies in its investment policy.
“ Always with the central idea in mind
o f creating confidence, but with the added
purpose o f making relations easier with
borrowers, we explain to borrowers in the
Review our policy o f requiring financial
statements, security, short time renewals,
periodic reductions. I f we are bringing
our credit files up to date and send out
requests for new financial statements, the
Review will have carried an article on the
necessity for accurate and fresh credit in
formation, which makes it easier for our
officer to extract the desired information.
I f a loan applicant is asked for security,
he knows that it is the bank’s policy and
not pure orneriness on the part o f the offi
cer, nor a reflection on the honesty o f the
applicant. I f a proposed capital loan is
turned down, the applicant has probably
read o f the undesirability o f such loans in
the bank’s note case and does not lay the
refusal to the fact that he does not belong
to the same lodge as the loaning officer.
“ The Review affords a mighty good way
to talk impersonally to the bank’s cus
tomers. Through the information given,
there appears to be a general appreciation
o f the fact that we are trying to run a safe
bank, and a growing spirit o f cooperation
to that end. We would not like to keep
house without it. That it is read in whole
or in part by a good many o f the 1,800
people who receive it, we have plenty of
evidence. That it brings us business we
know. That it helps our relations with
the public is its greatest value.
“ An important feature o f it is that we
in the bank have to live up to it. The
public is told how the bank is managed.
We have to manage it in that way or
somebody will check us up. We can’t
become lazy or negligent.

President.............................A. B. Cahalan
Miller

A. B. CAHALAN
President

partment in June, 1929. Lloyd Smith
becomes manager o f the credit depart
ment.

ciation in carrying on7y a minimum
amount o f currency on hand— just enough
fo r day-by-day needs. So if bank bandits
think robbing this institution will be p ro f
itable they will learn, to their disgust, that
they were mistaken.
Most country banks in South Dakota
now require their customers to give ad
vance notice if they need more than the
usual amount o f currency. It is the be
lief o f the state association that when
bank robbery becomes unprofitable, from
the standpoint o f big hauls, the incen
tive for this type o f banditry will be re
moved. Officers o f the association are
pleased with reports which are coming
in from various parts o f the state that
the customers o f banks are quickly real
izing the value o f this protective idea
and are lending their cooperation.
E le c te d D ir e c t o r

A t a meeting o f the directors o f the
First National Bank o f Leola, South Da
kota, S. L. Allen, vice president o f the
Aberdeen National Bank & Trust Com
pany, was elected a director to fill the
existing vacancy.
Mr. Allen is a banker o f wide experi
ence and is at present serving on the di
rectorate o f the Aberdeen National
Bank & Trust Company; the First Na
tional Bank o f Lemmon and the First
National o f Bison, all affiliates o f the
First Bank Stock Corporation of Minne
apolis.
The board o f directors o f the First
National Bank o f Leola now consists o f
E. D. Berridge, chairman; Lawrence
Heibel, secretary; Fred Kusler, J. P.
Guthmiller and S. L. Allen.
The officers a re : Fred Kusler, presi
dent; E. D. Berridge, vice president;
E. S. Wicklander, vice president and
cashier, and A. E. Heupel, assistant
cashier.

N orthw estern Banker

O ctober 1930

70
people say about us to each other. The
thing o f first importance is to so run our
bank that we will deserve to have people
speak well o f us. Then let people know
how the bank is run and give them some
thing to talk about.
Good news also
travels.”

Only six states thus far reporting
showed increases indicating new farm set
tlers were coming in, and farmer fathers
were subdividing with their sons.
Those states, with their percentage o f
increase in number o f farms were: South
Dakota, 11.4; Nevada, 8.7; Minnesota,
3.9; North Dakota, 0.5; and Kansas, 0.5.

C h e a p M o n e y , L o w P rices

S h o w F a r m In c r e a se

The landscape o f 23 states and the
District o f Columbia, approximately half
o f the United States, now lacks 216,967
farmsteads that were there in 1920.
The combined 1930 total, as compiled
from census bureau announcements, was
2,413,901 farms fo r this area as against
2,630,868 ten years ago.

to dealers in the United States totaled
76,140 cars, compared with 70,716 in July
and 147,351 in August, 1929. Total sales
to dealers, including Canadian sales and
overseas sipments, amounted to 85,610
cars, against 79,976 in July and 168,185 in
August last year.

G e n e r a l M o to r s

S a le s In c r e a se

Deliveries o f automobiles by General
Motors dealers in the United States to
consumers showed an increase in August
over the previous month. Deliveries to:
consumers totaled 86,426, compared with
80,147 in July and 151,722 in August last
year. Sales by manufacturing divisions

Psychology rather than economics ex
plains the present paradox o f cheap
money and low stock prices, suggested
Lord Melchett, British industrialist, in an
address to the Bond Club o f New York.
“ The only explanation is purely a psy
chological one— a want o f confidence, a
feeling o f uncertainty that makes people
leave their money in the banks,” he said.
As soon as that psychology begins to
change— and it is bound to change— you
will see a very great change in values
throughout the world.”
Lord Melchett, formerly Sir Alfred
Mond, added that cheap money and busi
ness depression could not long continue
because commodities could not indefinitely
be produced below cost and because “ the
world cannot afford to have its funds un
used.”
N e w B o o k s o n B a n k in g

T IM E S A V E D
on the collection of all grain, hay and
livestock drafts on Sioux City, if you
send them through the strong Live
Stock National Bank— the only bank at
the stock yards.
For 35 years we have been satisfying
customers of correspondent banks by
our speedy, efficient banking and col
lection service at the stock yards and
Sioux City business district.
Use this dependable short cut for all
your Sioux City transactions.

Live Sto ck .

National Bank
SIO U X CITY, I O W A

Affiliated with
N O R T H W E S T B A N C O R P O R A T IO N

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

C o m b i n e d R e so u r c e s
O v e r $ 4 8 3 ,0 0 0 ,0 0 0

October 1930

A booklet covering cost accounting and
banking has recently been issued by the
savings bank division o f the American
Bankers Association. One o f the articles
in the booklet is entitled “ Cost Account
ing and Audit Control fo r Savings De
partments in Banks,” another defines two
types o f banking as to their theoretical
structure and their practical operation.
T o S c a n C h ic a g o R a ilw a y M e r g e r

A tentative $268,758,000 financial plan
fo r consolidation o f all the elevated and
surface lines o f the Chicago street railAvay systems into one transportation com
pany has been submitted to a group o f
bankers, including Melvin A. Traylor,
A. W. Harris and Arthur Reynolds.
It is proposed that the new consolidated
transit corporation— Chicago Local Trans
portation Company— shall issue new se
curities totaling the agreed valuation o f
the surface and “ L ” lines, minus the
bonded indebtedness o f the latter. The
$8,516,700 bonded debt o f the “ L,” be
cause o f its average low interest rate, will
be assumed by the new company.
S. W . S tra u s D e a d

Simon W . Straus, chairman o f the
board o f S. W . Straus & Co., who through
real estate bond issues, in which he was
a pioneer, financed the construction o f
some o f the country’s most famous and
tallest buildings, died last month at his
home in the Hotel Ambassador, New York
City. He was in his sixty-fourth year.
Mr. Straus had been ill for more than a
year.

71
This is the first time fo r 18 years, that
a W . L. Wilson has been in the bank.
Nearly two decades ago W . L. Wilson I,
grandfather o f the present W . L. Wilson,
was in the bank directing its affairs.

Nebraska
Bank News

Named Assistant

Officers Nebraska Bankers
Association
President................... A. N. Mathers
Gering
Chairman of the Executive Council
......................................A. O. Kiley
Hastings
Treasurer............... Denman Kountze
Secretary..................Wm. B. Hughes
Omaha

Sells Deposits
Sale of the assets o f the Lincoln Na
tional Bank to the Continental National
Bank o f Lincoln was announced Septem
ber 24th. All checking accounts, savings
accounts, certificates o f deposits and coun
try bank accounts were transferred to tlie
Continental National.
Edwin VanHorn, president o f the Con
tinental, was first to announce the trans
fer. Later W . A. Selleck, president o f the
Lincoln National Bank and Trust Com
pany, in a statement attributed the deci
sion to liquidate to the fact that the rob
bery of the bank, September 17th, o f a
large amount o f cash and securities, had
created public uneasiness as to the safety
o f deposits in the institution.
Mr. Selleck said:
“ The result o f this robbery has been
such that it raised questions as to the
safety o f the depositors’ money deposited
in the Lincoln National Bank.
“ The officers and directors felt that an
arrangement should be made whereby not
only all the depositors’ money should be
secure, but the depositors themselves
should be saved from annoyance.
“ Through the cooperation o f the Conti
nental National Bank we have been able
to do this. Any deposit made in the Lin
coln National Bank is now on deposit in
the Continental National Bank.”
Approximately $2,500,000 in deposits
were transferred. The lease and equip
ment o f the Lincoln National Bank were
not transferred.

Brooks Added to Speakers
W . L. Brooks, president o f the North
ern National Bank, o f Bemidji, Minn.,
has been added to the list o f speakers fo r
the annual convention o f the Nebraska
Bankers Association, which will be held
in Omaha early in November. Mr. Brooks
will speak on “ Float Charges.”
The suggestion that a special section
o f the program be devoted to the general
subject o f bank management, or better
banking has been made by J. M. Soren
sen of the Stephens National Bank, Fre
mont, Neb., who is chairman o f the asso
ciation’s bank management and service

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Federal Reserve Bank of St. Louis

The Lincoln National Bank, Lincoln,
Nebraska, announced the appointment o f
J. T. Shields, recently cashier o f the First
National Bank o f Chadron, as assistant
cashier o f that institution.
Mr. Shields is a native o f North Platte.
WM. B. HUGHES
Secretary

charge committee. It is probable that liisi
suggestion will be adopted.
Besides Mr. Brooks, the other speakers
definitely scheduled for the program are
Walter W. Head, chairman o f the board
and former president o f the Omaha Na
tional Bank, now o f Chicago where he
is president o f the Foreman State Na
tional Bank; M. A. Kendall, vice presi
dent o f the Farmers Deposit National
Bank o f Pittsburgh, Penn.; J. V. W eb
ster, cashier of the First National Bank
o f Chadron, N eb.; Oliver P. Cordill, as
sistant cashier o f the Federal Reserve
Bank o f Omaha. A number o f invita
tions have been sent to other speakers, to
discuss banking topics, by W. B. Hughes,
secretary o f the association.
Omaha committees are hard at work on
convention plans, hoping to make the
convention memorable, not only fo r the
practical value o f the talks and discus
sions, but also fo r the pleasant social
gatherings. A theater party and an in
formal dance are planned fo r the first
evening o f the convention, and the bankers
will be the guests, the second evening, at
the annual livestock show and horse show
under the auspices o f the Ak-Sar-Ben.
This will be the third o f such exhibitions
by Ak-Sar-Ben, and is expected to sur
pass previous shows.

Joins Bancorporation
The Security State Bank o f Norfolk,
Nebraska, has announced its affiliation
with the Northwest Bancorporation.
The bank will be operated by its local
officers as an independent financial insti
tution affiliated with the Northwest group.
The bank was organized in 1921 and has
a capital stock o f $50,000; surplus o f
$16,000 ; deposits o f $601,722 ; and re
sources o f $679,372.
C. J. Hulac is president o f the banking
institution.

Assistant Cashier
At a meeting o f the directors o f the
Nebraska City National Bank William L.
Wilson was elected assistant cashier. Mr.
Wilson, the son of the late Harry Wilson,
has been in the bank since his father’s
death.

Resigns After 24 Years
G. W . Phillips, after twenty-four years
o f service, has resigned the presidency
o f the Central National Bank at Colum
bus, Nebraska. Mr. Phillips has been
president o f this institution since its or
ganization in 1906.
A t a recent meeting o f the directors
R. M. Campbell, fo r many years a vice
president o f the bank, was elected to
succeed Mr. Phillips. M. M. Taylor suc
ceeds Mr. Campbell as vice president.
These are the only changes in the per
sonnel, Theodore Friedhof continuing
as the other vice president, A. F. Clagemann as cashier, and Bert Phillips and
E. W . North as assistant cashiers.
Mr. Phillips will continue as a member
o f the board o f directors.

Elected Assistant Cashier
T. J. Shields has been elected an as
sistant cashier o f the Lincoln National
Bank & Trust Company at Lincoln,
Nebraska, taking effect on September
10th. Mr. Shields has been identified
with the banking business in northwest
ern Nebraska fo r a number o f years,
having served as cashier o f the First
National Bank o f Chadron, and cashier
o f the First State Bank o f Alliance.
Officers o f the Lincoln National Bank
& Trust Company now a re: W . A. Sellick, president; E. H. Luikart, executive
vice president; Don L. Love, vice presi
dent; Phill J. Hall, cashier; H. E. Leinberger and T. J. Shields, assistant cash
iers.

Purchase Bank Interest
G. E. Martin, assistant cashier o f the
State Bank at Edgar, Nebraska, and
W . S. Avery, financier, have purchased
one-half interest in the State Bank of
Edgar.
A. H. Warren remains as president,
and E. W . Clark as cashier, the only
change in present officers being W . S.
Avery elected as vice president.
SE C R E T A R Y HUGHES reports that
in the work fo r a state-wide credit bureau
arrangement between the Nebraska banks,
24 counties surrounding Adams, Burt,
Seward and Richardson counties, with 247
banks, have been invited to submit credit

Northwestern Banker

October 1930

72
lists, and 50 have already done so. Fortynine others, by mid-September, had re
sponded favorably to the request. Only
25 definitely refused.
* * *

Nothing succeeds like
efficient service
No service excels that
of a successful bank

It is not always easy to distinguish
between cause and effect in account
ing for the fact that the largest and
strongest banks usually offer the best
collection facilities.
This institution enjoys the confidence
and patronage of a steadily increas
ing list of clients as the result of the
complete and efficient collection serv
ices we provide.

. . . T H E . . .

P H IL A D E L P H IA
NATIONAL BANK
ORGANIZED 1803

PH ILAD ELPH IA, PA.
Capital and Surplus . . $ 5 0 ,0 0 0 ,0 0 0
P H IL A D E L P H IA ’S LAR G EST B A N K

N orthw estern B anker

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Federal Reserve Bank of St. Louis

O ctob er 1930

THE BURT COUNTY B AN K ER S A s
sociation has elected Ben Evans, vice
president of the First National Bank o f
Decatur, as president; R. Iv. Hancock,
cashier o f the Burt County State Bank
of Tekamah, vice president; and Edgar
M. Hoar, cashier o f the State Bank o f
Decatur, secretary for the coming year.
* * *
THE ARNOLD STATE B AN K and
the Security State Bank at Arnold, Neb.,
in Custer county, which were closed last
June, have been reopened as a consoli
dated institution under the name o f the
Arnold State Bank, under arrangements
completed by State Bank Commissioner
Woods.
Depositors o f the Security Bank ac
cepted a 90 per cent reduction o f deposits,
and o f the Arnold State Bank, a reduction
o f 85 per cent. Original stockholders re
capitalized each bank before the consoli
dation was effected.
The president of the new bank is John
Ginch; L. P. Rose, vice president; B. C.
Wehrman, cashier ; Ross Price, assistant
cashier; and on the board o f directors are
also T. E. Ricketts, T. E. Chambers, A. L.
Auble, and J. F. Dennis.
Forty state banks have now been simi
larly reorganized.
* * #
ORGAN IZATION o f an effective re
sistance to bank robbers, who have been
unusually active in Nebraska in the late
summer, is one o f the principal objectives
o f the bankers o f the state, at the present
time. Even while a committee was in
session in Omaha, discussing this problem,
one o f the boldest o f robberies was com
mitted in Lincoln, where the Lincoln State
National Bank and Trust Company was
robbed o f cash and securities for a prob
able loss of $75,000, and W . E. Barkley,
a director, and Phil Hall, Jr., cashier,
were slugged, although only slightly hurt.
The protective committee o f the state
association is composed o f Howard A.
Wilson, cashier of the Live Stock Na
tional Bank, as chairman; R. H. Barber,
vice president o f the Fort Kearney State
bank o f Kearney; and C. E. Wood, cash
ier o f the Bank o f Talmage, Talmage,
Neb.
Among measures under discussion are
a reward o f $3,000 to be offered by the
state association fo r dead bank bandits;
creation o f a state police or constabulary
equipped with modern weapons; passage
by the next legislature of a measure, simi
lar to the “ Baumes law” of NewT York,
which provides for life imprisonment after
three felony convictions; the use o f tear
gas as a weapon against robbers; im
provement of present alarm systems; in
stallation o f new alarm devices.

73
C H AR LES M cCUM SEY has been ad
vanced to manager o f the Federal Inter
mediate Credit Bank o f Omaha, from the
post o f assistant manager, to succeed
Andrew Kopperud, who resigned. Mr.
Kopperud had served fo r almost four
years as vice president and general man
ager o f the credit bank, and treasurer of
both the credit bank and the Federal Land
Bank of Omaha since January, 1929. He
will continue in his other positions.
Mr. McCumsey is 36 years old; a na
tive o f SouthDakota, and fo r ten years
was associated with a bank
at Belle
Fourche. He became field inspector fo r
the intermediate credit bank in Omaha
in 1924.
* * *

INSURANCE COMMITTEE
F. R. Haggrat, chairman. Vice president St.
Paul National Bank.
F. R. Kingsley, Jr., cashier Minden Exchange
National Banlt.
H. S. Ringland, cashier First National Bank,
Wayne.
AGRICULTURAL COMMITTEE
C. N. Wright, chairman. Vice president Platte
Valley State Bank, Scottsbluff.
H. D. Miller, president First National Bank,
Staton.
C. S. Brown, vice president Fidelity State
Bank, Aurora.
TAXATION COMMITTEE
Elmer Williams, chairman.
President Com
mercial State Bank, Grand Island.
C. E. Burham, president Norfolk National
Bank.
C. K. Hart, president Prosser State Bank.
George W. Holmes, vice president First Trust
Company, Lincoln.
J. R. Cain, Jr., vice president Omaha National
Bank.

PRE SID E N T A. N. M A TH ER S and
the executive council of the Nebraska
Bankers Association have announced the
appointment o f the following standing
committees:
TIME LOCK COMMITTEE
Dennman Kountze, chairman. Vice president
First National Bank, Omaha.
Ray S. Wilfley, cashier First National Bank,
Fairbury.
PROTECTIVE COMMITTEE
H. O. Wilson, chairman. Cashier Live Stock
National Bank, Omaha.
R. H. Barber, vice president Bank of Paxton.
C. E. Wood, cashier Bank of Talmage.
MEMBERSHIP COMMITTEE
W. H. McDonald, chairman.
Chairman of
Board McDonald State Bank, North Platte.
D. V. Blatter, president Albion National Bank.
Percy Baird, cashier Farmers State Bank, Su
perior.

GUY C. K ID D O , who was vice presi
dent o f the Omaha National Bank, has
removed to Chicago to become the execu
tive manager o f several companies organ
ized by Walter W . Head.
* * *
FORD H O V E Y , president o f the Stock
Yards National Bank o f Omaha, has ac
cepted the task o f being chairman for
the annual drive for funds o f the Omaha
Community Chest. The campaign, which
will be conducted in early November, will
have fo r its goal the pledging o f almost
$450,000 for Omaha’s charities in 1931.
* # *
G W Y E R Y A T E S , vice president o f the
United States National Bank o f Omaha,
returned early in September from France,
where he had traveled briefly with Mrs.
Yates.
On their return they were
passengers on the French line vessel, the
Paris, which encountered unusually rough
weather and heavy seas. No mishaps were
suffered by Mr. and Mrs. Yates.
* * *
THE FLUENCY in the French tongue
o f Raymond Baur, vice president o f the
Omaha National Bank, proved useful
when Coste and Bellonte, the French
trans-Atlantic fliers, visited Omaha on
their good will tour. He was one o f the
reception group.
ROSS L. HAMMOND, president o f the
Union National Bank o f Fremont, Ne
braska, died suddenly at his home in Fre
mont Sunday morning, September 21st,
following a stroke o f paralysis. Mr. Ham
mond had been close to complete recovery
from a stroke o f last April. He had been
prominent in Nebraska life fo r forty
years, as editor o f the Fremont Tribune,
but in 1918 went to California, settling
at Riverside, wdiich was his home fo r nine
years. Returning to Frement in 1928, he
became president o f the Union National
and president o f the Fremont Chamber of
Commerce, resuming an active part in
community affairs. He is survived by two
sons and a daughter o f his first wife, and
by his second wife. A fter funeral serv
ices in Fremont, the body was taken to
Riverside, Califronia, for burial.

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Federal Reserve Bank of St. Louis

EXPEDITING
SERVICE

(

The transfer of funds from
one point to another with the
least loss of time between
operations is one of the most
important functions of the
banking world for the busi
ness world today.
Because of its relationship to
the Stock Yards of Chicago
and the many thousands
of financial operations and
transfers of money originat
ing therein, this bank has
developed a most efficient
routine for the handling of
funds for banker customers.
To expedite returns entrust
your business to this bank.

THE STOCKYARDS NATIONAL BANK
A N D

THE STOCK YARDS TRUST & SAVINGS BANK
o / - CH ICAGO

N orth w estern B anker

O ctober 1930

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A L E N D A R advertising is popular because it is the most econom
ical way of placing a sign in homes and offices where people
live and work, keeping it there for at least a year. Based on the
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“ thank you.” Because of its attractiveness and utility the art calen
dar wins space everywhere that could be obtained in no other way.

HE art calendar combines usefulness, attractiveness, perma
nence, persistence, exclusiveness, easy distribution, preferred
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RED OAK, IOWA
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I
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AK-SAR-BEN STOCK SHOW
October 31st to November 7th

Y ou are invited to make this Bank your headquarters while visit
ing Show and the Nebraska Bankers Convention.

L IV E S T O C K N A T IO N A L B A N K

N orth w estern B anker

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Federal Reserve Bank of St. Louis

OF SOUTH O M A H A
OMAHA
Union Stock Y ards
O ctob er 1930

EDUCATION, PUBLIC RELATIONS AND
TH R IFT COMMITTEE
W. A. Selleck, chairman. President Lincoln
National Bank and Trust Company.
C. A. Phillips, cashier Cambridge State Bank.
J. E. Conklin, president Hubbell Bank.
W. H. Dressier, cashier Stockyards National
Bank, Omaha.
P U B LIC ITY COMMITTEE
Jas. T. Shewell, chairman.
President Mer
chants National Bank, Nebraska City.
Fred D. Stone, c /o First National Bank, L in
coln.
T. L. Green, vice president Platte Valley State
Bank, Scottsbluff.
FINANCE COMMITTEE
A. N. Mathers, chairman. President Gerig Na
tional Bank.
O. A. Riley, cashier State Bank of Hastings.
Dennman Kountze, vice president First Na
tional Bank, Omaha.
CREDIT BUREAU COMMITTEE
J. F. Gallagher, chairman.
President First
National Bank, O ’ Neill.
J. G. Sawyer, cashier Saline County Bank,
Western.
W. E. Minier, cashier Oakland State Bank.
Ralph Bloom, cashier Bank of Axtell.
D. 0. West, vice president Nehawka Bank.
Otto Kotouc, president Home State Bank,
Humboldt.
COUNTY ORGANIZATION COMMITTEE
Rollie W. Ley, chairman. President State Na
tional Bank of Wayne.
J. W. Ouderkirk, vice president First National
Bank, Hastings.
F. T. Carsten, vice president Hallam Bank.
REGIONAL CLEARING HOUSE COMMITTEE
J. F. Gallagher, chairman. President First Na
tional Bank, O ’ Neill.
R. I. Stout, president First National Bank,
Tekamah.
P. L. Hall, Jr., president Greenwood State
Bank.

F o u r L e g a l B r a in T ea se r s

(Continued from page 18)

■

BANK MANAGEMENT AND SERVICE
CHARGE COMMITTEE
J. M. Sorenson, chairman.
Vice president
Stephene National Bank, Fremont.
I. R. Alter, vice president National Bank,
Grand Island.
S. D. Thornton, Jr., vice president Security
State Bank, Neligh.

Suppose, again, that A forges B ’s name
to a note, or other negotiable instrument,
the note is transferred to a bank, and B,
instead o f prosecuting A for forgery,
agrees to be bound by the note.
Is this agreement binding on B ? In
other words can a forgery be ratified?
The American courts are not uniform
on this point, but the courts o f Indiana
(in 16 N. E. 606), Kentucky (in 83 Ky.
384), Ohio (in 95 N. E. 881), and Penn
sylvania (in 115 Pa. 142) have ruled that
a forgery cannot be ratified, on the ground
Chat it is against public policy and that
there is no consideration for the rati
fication.
A n I m p o r t a n t R u lin g

A recent ruling o f the California attor
ney general requires thrift companies and
similar savings organizations to submit to
the same legal supervision as that gov
erning building and loan associations in
that state.
D e s p e r a te C h a n c e s

“ Is your husband a good provider,
Dinah ?”
“ Yessum, he’s a good providah all
right, but I ’se alius skeered dat niggah’s
gwine er git caught at it.”

75
Avith close affiliation to the neAV institu
tion.
Ralph W . Lambert, executive vice
president o f the new company, was pres
ident o f the Ralph W . Lambert & Com
pany, which Avas organized the first of
the year, to take over the business in
Minneapolis o f Merrill, Lynch & Co.

M in n esota
Bank News
Officers Minnesota Bankers
Association
President................. C. B. Brombach
Minneapolis
Vice President............J. R. Chappell
Winona
Treasurer....................W. L. Brooks
C. B. BROMBACH
President

Bemidji

Secretary.................... George Susens
Minneapolis

To Hold Bank Conference
George Susens, secretary o f the Minne
sota Bankers Association, has announced
that arrangements are being completed
for another Better Bank Management
Conference, which is to be held in Minne
apolis at the Nicollet hotel on November
7th.
Regarding this meeting Mr. Susens com
ments as follow s:
“ There a\411 be three sessions— morning,
afternoon and evening. One session will
be devoted to Bank Crimes. Judge Hallam, chairman o f the newly appointed
crime commission, will speak. The gover
nors o f the three states will be on the pro
gram. There will be on display numerous
protective devices designed to prevent
holdups. Harold E. W ood o f the Fore
man State Corporation and an outstand
ing authority on bonds, will tell us what
bonds not to buy and perhaps show us
how to take up the “ slack” now in our
bond account. A number o f local bankers
will relate how they made their banks earn
more money and conserve their resources.
“ You and your family will be granted
fare and a half rates. Plan your usual
fall business trip to the cities so as to com
bine it with this conference on November
7, 1930. Minnesota and South Dakota
will play football on the day after. A
complete and detailed program will be
mailed later. Set aside November 7tli and
meet your banker friends. The hanking
problems o f these three states are alike.
Here is a chance to get your neighbor’s
viewpoint and an opportunity to profit
from his experiences. The two Dakotas
promise twice the crowd that attended last
year.”

Wins Golf Title
C. T. Jaffray, chairman o f the board o f
the First Bank Stock Corporation, Minne
apolis, veteran golfer, added another cup
to his collection o f g olf laurels last month
when he Avon the State Senior Golf Cham
pionship o f Minnesota. He shot a bril
liant 77 in his first round over the difficult
Minikahda course. Mr. Jaffray lias been

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Federal Reserve Bank of St. Louis

Adds Two to Directorate

GEORGE SUSENS
Secretary

a top-notch golfer fo r years, and at one
time Avas Minnesota champion.

New Investment Firm
A neAV investment firm known as Lambert-Price & Co., has been organized in
Minneapolis. They are successors to
Ralph W . Lambert & Co. Offices o f the
new firm are in the Baker building.
Officers and directors o f the new or
ganization are : E. R. Price, president;
Ralph W . Lambert, executive vice presi
dent ; Donald M. Davis, vice president
and secretary; Charles W . Woehler,
treasurer; R. R. Rand, Jr., president
o f the Rand Company; W . P. Chris
tian, president, Northern Bag Com
pany; F. G. JeAvett, Investments; S. H.
Bowman, president, S. H. Bowman Lum
ber Company; E. H. Norblom, president,
Landers, Morrison, Christenson Com
pany; and H. C. Mackall o f Stinchfield,
Mackall, Crounse and McNally.
E. R. Price, president o f the new or
ganization, is vice president and treas
urer o f the Guaranteed Mortgage Com
pany, which Avill continue its business

Jay E. Decker, Mason City, Iowa,
president o f Jacob E. Decker & Sons,
and W illiam Chamberlain o f Chicago,
president o f the United Power & Light
Co., Avhich has interests in Mason City,
were elected as directors o f the NorthAvest Bancorporation at the quarterly
meeting o f the board, held in the North
west National Bank o f Minneapolis.
The directors declared the regular
quarterly dividend o f 45 cents a share
on Bancorporation stock, payable Octo
ber 1 to stockholders o f record Septem
ber 20. This maintains the fixed annual
rate o f $1.80 per share. The quarterly
financial report showed that the 1930
dividend requirements had been earned
in full during the first half o f this year,
while earnings fo r the first nine months,
Avith September estimated, will exceed
$3 a share on the 1,164,967 shares out
standing.

Suggested for Board
Talk o f a new ninth district member
o f the federal reserve board to succeed
Roy A. Young, who recently resigned to
become governor o f the Federal Reserve
Bank o f Boston, may result in a sug
gestion to President Hoover to appoint
a Twin Cities financial leader to the p o
sition. NorthAvest bankers are noAv con
sidering the advisability o f suggesting
an appointee fo r the office.

A d e q u a t e banking and trust
service as Minneapolis corres*
pondent for Northwest Banks*

M ID L A N D
NATIONAL BANK
AND TRUST COMPANY
W here Second Avenue South Crosses Fourth Street

M IN N E A P O L IS
A ffilia te d W i t h
N o r t h w e s t
B a n c o r p o r a t io n

C o m b i n e d R esou rces
O v e r $ 4 8 3 ,0 0 0 ,0 0 0 .0 0

N orth w estern B anker

O ctober 1930

76
streets, an arcade connecting through
the rear half block to F ifth street.
Savings department, retail securities
office, travel bureau and consolidated air1
ticket office on the main floor with direct
entrance from the street.
Entire second floor given to the main
banking lobby with mezzanine occupying
the third floor area.
The fourth floor and that of the Mer
chants Bank building adjoining to be
combined into a bookkeeping transit and
mail department with provisions fo r
employes’ locker rooms and rest rooms.
The Merchants Trust Company to oc
cupy the fifth floor, to be served by pri
vate elevators from the ground and
main banking floors.
Sixth and seventh floors to be used for
executive offices, directors room and
headquarters offices o f First Securities
Corporation and First Bancredit Cor
poration.
The upper 21 floors to be devoted to
rentable space.
Six high-speed eleva
tors o f the automatic control type will
be installed on the Minnesota street side
o f the new building providing service fo r
the building as a unit. Five service ele
vators fo r officers and employes will in
terconnect the banking quarters from
the first to the seventh floors.

Begins 44th Year of Service

Above, the new 30-story bank and office building now being built by the
First National Bank of St. Paul

New Home of the First National, St. Paul
BOVE is a picture o f the new 30story banking and office building
now under construction for the
First National Bank o f St. Paul. The
site o f the new building, on the corner
o f Fourth and Minnesota streets, ad
joins the present Merchants Bank build
ing, and the two structures will be con
solidated in the lower floors. The main
banking lobby will be 310 feet long, ex
tending the full length o f the block and
consolidating the second and third floors
o f both buildings. Broad stairways at
each end will connect with the ground
floor.
The First National, Merchants Trust
Company, First Securities Corporation
and First Bancredit Corporation will
occupy the first seven floors o f the new
First National building, which will
reach 375 feet above the street level

N orthw estern B anker

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Federal Reserve Bank of St. Louis

O ctober 1930

making it the tallest regulation type
office building in the Northwest.
Construction o f the building is now
under way. The plans provide for fa c
ing the new structure on all fou r sides
with Indiana limestone, a departure from
the usual practice o f thus finishing ex
teriors on only the street sides. A n
other innovation will be the use o f
aluminum as facing material o f the
•spandrels, or the wall space between the
tops and bottoms o f the windows.
Some features o f the building f oIIoav :
Safety deposit vaults below the street
levels fo r 25,000 boxes and compart
ments, with 65 coupon rooms and 12 con
ference rooms.
A pistol target range and headquar
ters fo r the bank police, also below the
street level.
Entrances to the main floor from four

Forty-three years ago a youth o f 18
arrived in Minneapolis preparatory to
entering the University o f Minnesota.
Desiring to earn a little money before
classes got under way, he took a job as
messenger with the Northwestern Na
tional Bank and liked it so well he re
mained.
That youth was Edward W . Decker,
now president o f the Northwestern Na
tional Bank and the Northwest Bancorporation, who recently has begun his
forty-fourth year with the institution.
In actual years o f service with the
bank and its affiliated institutions he
stands second. Ivor W . Chambers, secre
tary o f the Minnesota Loan & Trust Co.,
is the oldest, having joined the trust
company in 1885.
Born in Austin, Minn., Mr. Decker
came o f pioneer parents who made their
way to southern Minnesota in 1856 by
ox team. Following his graduation from
the Austin high school in 1857, Mr.
Decker went to Minneapolis intending to
enter the university. The lure of his new
found position, however, proved too
great, and he remained with the bank.
He recently celebrated his sixty-first
birthday.

Six Hundred A. I. B. Students
Approximately 600 registrations have
been received fo r courses given under the
auspices o f Minneapolis Chapter, Ameri
can Institute o f Banking. Classes began

77
September 15th and will be held in the
Chapter Headquarters rooms in the Baker
Building. The courses are divided into
three classifications, pre-standard, stand
ard and special courses.
Pre-standard courses are intended p ri
marily to supply preliminary training for
those who wish to qualify for admission to
the standard course as well as for those
who desire the instruction which these
courses give.
Standard four-year courses are de
signed for those who wish to obtain a
broad professional training in banking or
finance.
Advanced courses are offered to gradu
ates o f the standard courses and others o f
sufficient experience who seek training in
special fields o f banking.
Pre-standard courses include : Banking
Fundamentals, Commercial Law and Ne
gotiable Instruments. Standard courses
include: Economics, Credits, Standard
Banking and Analyzing Financial State
ments. Advanced courses a re : Public
Speaking, Debating, Trust Functions,
Business Forecasting, Investments.
Among the instructors for these classes
are Clarence E. Drake, Arnulf Ueland,
Oliver Powell, Cal Aurand, A. C. Regan,
David Shearer, J. J. Cameron, David
Bronson, Earl Carlson, Leonard Gisvold,
L. Ashton Carhart and Howard Gilkinson.
The American Institute o f Banking is
the educational branch o f the American
Bankers Association.
There are more
than 200 chapters in the United States
with a membership exceeding 69,000 mem
bers. Minneapolis Chapter, the oldest in
the United States, has a membership o f
1,300 members.
C. H. Rose, assistant
cashier o f the Northwestern National
Bank, is president o f the local organiza
tion.
A l e y A t t e n d s M in n e a p o lis M e e tin g

Ben Aley, national president American
Institute o f Banking, was the principal
speaker at the annual fall dinner of Min
neapolis Chapter, American Institute of
Banking which was held in Dayton’s Tea
Rooms at six o’clock, Wednesday, Septem
ber 24th. Mr. Aley, who is vice president
o f the United States National Bank, Den
ver, is also a member o f the Denver and
American Bar Associations. In addition
to liis institute responsibilities, he is a
member o f the Public Education Commis
sion o f the American Bankers Association.
Richard K . Clark, Farmers & Mechanics
Savings Bank, was general chairman of
arrangements for the dinner.

S to c k H e ld N o n -T a x a b le

prise the entire assets o f the corporations
already pay direct taxes on their proper
ties.
This is the gist o f an opinion submitted
to the Minnesota tax commission by W . K.
Montague, assistant attorney general.
While he qualifies his opinion by ruling
that the corporation stockowners at least
should not be taxed on such proportions
o f their holdings as represent properties
on which the separate banks already pay
taxes in Minnesota, it was pointed out that
the tax laws are similar in the various
northwest states in which the Northwest
Bancorporation and First Bank Stock cor
poration own and operate banks. Be

THE
1

tween them, they control about 220 insti
tutions.
Mr. Montague holds that the two corpo
rations, pioneers in the group banking
field and operated in Minneapolis, are
neither banks nor mortgage loan com
panies, for both of which classes o f insti
tutions special methods o f taxation are
provided by Minnesota statutes.
His findings do not exempt the corpo
rations from payment o f the usual per
sonal property taxes on their cash hold
ings, office equipment and other assets,
however.
While this is the situation so far as
Minnesota and Minnesota banks in the

close relationship be-

tween correspondent banks

of the Middle W est and the
Drovers

the logical

result

of Drovers’ qualifications— long
experience, advantageous loca
tion and specialization in this
field.

Your

bank,

too,

will

appreciate this close relation
ship

and

efficient

service.

rovers

N A TIO N A L B A N K
TRU5T6J§AVIN£5 BANK

Union Stock Yards - Chicago, 111.

The 30,000 or more stockholders o f the
First Bank Stock Corporation and North
west Bancorporation cannot be taxed on
their shares in the two big holding com
panies, since the banks whose stocks com

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Federal Reserve Bank of St. Louis

N orth w estern Banker

O ctober 1930

78
groups are concerned, the essential differ
ences in the laws o f Wisconsin, the Da
kotas, Montana, Nebraska and Iowa are
relatively slight, officials o f the two cor
porations explained.
The opinion o f the attorney general’s
office was submitted at the request o f the
state tax commission. The latter had re
ceived a number o f inquiries from local
assessors, as to what to do about assessing
stocks o f the two companies in the per
sonal property lists o f citizens o f their
communities.

S ta ff C h a n g e s

Several changes in the personnel o f
banks in the First National group in
Minneapolis were announced effective
September 1. F. L. Durand, assistant
cashier o f the First Minneapolis Trust
Company, joined the staff o f the First
Bank Stock Corporation installing and

managing the credit department and files
o f the group.
Mr. Durand has been
with the First National organization
since 1915. Prior to his election a year
ago as assistant cashier o f the trust com
pany, he had spent several years in the
credit department o f the First National
Bank.
T. A. Heck, cashier o f the Produce
State Bank, succeeds Mr. Durand as as
sistant cashier o f the First Minneapolis
Trust Company and in turn will be suc
ceeded by A. H. Timmerman, at present
cashier o f the Hennepin State Bank.
G. 0 . Lee, vice president o f the Henne
pin State Bank, assumes the cashiership
in addition to his present office.
D e c la r e s D iv id e n d

The executive committee o f the board
o f directors o f the First Bank Stock Cor
poration, holding a company headed by

the First National Banks in Minneapolis
and St. Paul, voted recently to declare
the regular quarterly dividend o f 25 cents
a share on approximately 3,000,000 shares
o f outstanding $25 par value stock. This
action maintains the corporation’s usual
dividend rate o f 4 per cent, or $1 a share
annually. The new dividend, amounting
to over $750,00, is payable October 1 to
stockholders o f record September 15.
T w o P r o m o te d

T. A. Phillips, president o f the Minne
sota Mutual L ife Insurance Co., an
nounces two changes in the executive
personnel o f the company.
O. J. Lacey, vice president, who for
several years has been in charge o f
agencies, has been transferred to the in
vestment department, and Harold J.
Cummings, also a vice president, has been
made superintendent o f agencies.
**
C o u n t y B a n k e r s E le c t O fficers

W M E T H E R your require'
ments are broad or limited,
you will find that we attach
an im p orta n ce to the business
o f an out'ofitown customer, to
which we know it is entitled.
This is accomplished by giving
to your problems the careful,
experienced attention of an
officer.

THE NORTHERN
TRUST COMPANY
N o r th w e s t C o r n e r L a S a lle a n d M o n r o e Sts.
C H IC A G O

N orthw estern B anker

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Federal Reserve Bank of St. Louis

O ctob er 1930

C. S. Gjertson o f Sandstone, Minne
sota, was elected president o f the Pine
County Bankers Association at the an
nual meeting held in the Madison hotel
at Sandstone. H. E. Shafer o f Finlayson was elected vice president and Art
Eddy o f Hinckley was elected secretarytreasurer. A combined statement o f all
the banks o f the county shows the total
assets as $3,075,739.36 and deposits o f
$2,650,648.82.
A banquet was held at 6 :30 which was
followed by a business meeting at which
the principal speakers were John Rausch
o f Lastrop and John Meyer, secretary o f
the Minneapolis Council o f Agriculture.
The association passed the follow ing
resolution:
“ Whereas, our County Agent, Mr. W .
F. Hammargren, through the 4-H Clubs
o f the county made such an excellent
showing at the recent county fa ir by
having more than 100 boys and girls
present from the various parts o f the
county, with cattle, hogs, sheep and
poultry
“ Resolved that this association extend
to Mr. Hammargren and through him to
the 4-H Clubs o f the county, its appre
ciation and congratulations fo r this the
best display o f junior live stock ever
had at our fair.
“ Be it further resolved that a copy o f
these resolutions be spread upon the
minutes o f our meeting, a copy sent to
Mr. Hammargren and a copy to each o f
the county newspapers fo r publication.”
Pine County Bankers Association.
K i l l e d in A u t o M is h a p

Suffering a broken neck when his auto
mobile overturned, Herman A. Quast,
president o f the State Bank o f Wheaton,
Minnesota, and a resident there 32 years,
died September 9th.
Quast’ s machine overturned Tuesday

79
afternoon when a tire blew out. Biding
with him were S. C. Odenborg, Traverse
county attorney, and Thomas Banney,
who sustained minor injuries. The car1
rolled over three times.
Surviving Quast are his wife, a son, a
daughter and two grandchildren.
A n n o u n c e M erger

Announcement has been made that the
First National Bank o f Grand Bapids,
Minnesota, has taken over all business o f
the Itasca County State Bank, the mer
ger to become effective immediately.
F. E. King, president o f the First Na
tional, is president o f the merged bank.
G i v e n S ta te C h a r te r

The State Commerce Commission has
issued a charter to the Security State
Bank o f Sebeka, according to an an
nouncement by A. J. Yeigel, state bank
ing commissioner.
The Sebeka bank has capital o f
$20,000, surplus o f $4,000 and undivided
profits o f $1,000. E. D. Lyman is presi
dent and L. D. Croswell, cashier, o f the
new bank.
B u y M c G ra th B a n k

The Shafers, wTho are bankers o f many
years standing in the Finlayson com
munity, have purchased the entire cap

ital stock o f the State Bank of McGrath,
Minnesota. H. E. Shafer becomes pres
ident o f the McGrath bank, and Y . E.
Shafer, his son, will be the man in charge
o f the newly acquired institution.
H ead s C o u n ty B an k ers

Henry Dahl o f Fergus Falls, Minne
sota, was elected president o f the Otter
Tail County Bankers Association at its
annual meeting.
Other officers named are A. C. Meland,
Pelican Bapids, vice president, and
Thomas Morken o f Clitherall, secretarytreasurer.
Earle Brown o f Minneapolis, head o f
the state highway patrol, was principal
speaker. Edward J. Stoll o f Dent, pres
ident o f the association, presided.
Mr. Brown said his highway patrol
force o f 35 men traveled 162,640 miles
during July, gave aid to 18,758 motorists
and made 196 arrests.
Speaking o f Governor Christianson’s
proposal to combine the highway patrol
with police forces o f the state, Mr.
Brown said he did not favor that, as his
men were intended primarily fo r traffic
work and to carry out this work they
must remain on the highways.
Elmer E. Adams, publisher o f the F er
gus Falls Journal, spoke to the bankers
about his recent visit to Washington, at
which time he appeared before the con

gressional committee as a representative
o f independent bankers o f Minnesota.

C a sh ie r R e sig n s

O. J. Clark, cashier and vice president
o f the Blue Earth, Minnesota, State Bank,
has resigned as cashier, owing to ill health.
He has been connected with the bank more
than 25 years, being one o f the organizers
o f the firm o f Willmert, Brown, Clark and
Company.
J. H. Gunderson, Frost, is now cashier
o f the bank. He began his hanking career
as bookkeeper in Frost in 1915 which
position he held until the W orld W ar
when he saw service in France. Upon his
return he was made second assistant cash
ier o f the State Bank of Frost and seven
years ago, he became cashier o f that insti
tution.
He has now been elected president o f
the Frost bank which position he will
hold in addition to that o f cashier o f the
Blue Earth bank.
T h e F a s tid io u s C o w

Foreigner. “ I want to buy some strong
rope; my cow he changes his hide every
night.”
Dealer. “ H ow ’s that?”
Foreigner. “ One night he hide in the
creek, other night he hide in the thicket.
W ant to tie him oop.”

CHICAGO’S

M orrison H otel
Corner Madison and Clark Streets

Closest in the City to Stores , O ffices ,
Theatres and Railroad Stations

1,950 Rooms Now
SOO B e in g A d d e d

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Federal Reserve Bank of St. Louis

GÎÏ
The New Morrison,
when completed, will
be the world’s largest
and tallest hotel, with
3400 rooms.

Every guest room is outside, with bath,
running ice water, bed-head lamp and
Servidor. Each floor has its own house
keeper and the hotel’s garage has exten
sive facilities for car storage. Rates are
extremely moderate— $2.50 up— because
valuable subleases at this location pay all
the ground rent and the saving is passed
on to the guests.

O il

The Tallest Hotel in the W orld

. . .

46 Stories High

W r i t e o r W i r e f o r R e se r v a tio n s

N orth w estern B anker

O ctober 1930

80
State Bank o f Niagara, succeeding P. A.
Paulson, who has resigned.

North Dakota
Bank News

THE TIOGA STATE B A N K has re
ceived its certificate from the secretary
o f state renewing the term of its cor
porate existence fo r a period o f twentyfive years.

Officers North Dakota Bankers
Association

GUSTAV W IE LA N D has accepted a
position as bookkeeper and teller o f the
First State Bank, Turtle Lake.

President.................................................. ...............J. E. Davis
Bismarck
Vice President....................................... Paul T. Kretschmar
V enturia

Secretary........................................................ W. O. Macfadden
Fargo

B anks M erge

Consolidation of the First State and the
First National bank at Ashley, North Da
kota, has been announced. The new bank
will continue business under the name of
First State Bank in the First National
Bank building.
Officers o f the First National Bank are
L. Rubin, president; V. S. Collins, vice
presdent; and A. W . Wentz, cashier.
Officers o f the First State Bank are John
Bischof, president ; I. E. Giedt and J. H.
Jenner, vice presidents; and M. J. Ruemmele, cashier.
The First State Bank o f Fryburg dis
continued business September 13 and its
deposit liabilities were assumed by the
Citizens State Bank o f Belfield.

W. C. MACFADDEN
Secretary

tive management o f the bank, and has
stated that in due time minor changes
would likely take place. J. W. Overstreet o f Minneapolis is vice president.
Mr. Robertson has been in financing
business fo r the past 22 years, receiving
his early training o f finances and credits
through the International Harvester Co.
Mr. Robertson has served fo r three years
on the Executive Committee o f the Minne
sota Bankers’ Association.
N o r t h D a k o ta N e w s

THE SECRETARY OF STATE has
issued a certificate renewing the term o f
corporate existence o f the First State
Bank o f Arthur fo r a period o f twentyfive years.

THE B A N K OF BERTHOLD has re
newed the term of its corporate existence
fo r a period o f twenty-five years.
F R A N K LEUZ has accepted a p o
sition as assistant cashier of the Union
Bank o f Antler, succeeding Esther S.
Dyar, who has resigned.
THE L ITCH V ILLE STATE B AN K
has received its charter and opened for
business with the following officers in
charge: President, T. I. Strinden; vice
president, A. P. Hanson; cashier, C. J.
Haarsager. The directors a re : T. I.
Strinden, Ole 0 . Dahl, S. O. Carlson,
A. P. Hanson and C. J Haarsager.
THE GLADSTONE STATE B A N K
has renewed the term o f its corporate
existence fo r a period o f twenty years.

B an k T ak en O ver
B u y W a lh a l la B a n k

The First National Bank at Walhalla,
North Dakota, was recently purchased by
the A. W . Robertson Co., o f Minneapolis.
A. W . Robertson o f Minneapolis, as
president o f the company, has taken ac

THE PETTIBONE STATE B AN K
has reduced the number o f its board o f
directors from five to three.
S. L. FRYDENLUND has been elected
cashier and a director o f the Security

The Farmers State Bank o f W olford,
North Dakota, was taken over by the
Citizens State Bank o f Rugby, Gilbert
Semingson, state bank examiner, an
nounced. The consolidation was made as
o f September 6. Both banks are in
Pierce County.
In M erg er

MIDLAND BANK

The State Bank o f Gackle, N. D., was
taken over by the First National Bank
o f Gackle, Gilbert Semingson, state ex
aminer, announced. The consolidation
was made as o f August 28.

A C om plete Banking S e rvice

N o r t h D a k o t a ’ s In d u s tr ia l F u tu r e

LIMITED

The Midland Bank offers exceptional facilities
for the transaction of banking business of every
description. It has offices in the Atlantic Liners

“ A q u itan ia”

“ B eren ga ria”

“ M auretania”

and with affiliated banks operates over 2500
branches in Great Britain and Northern Ireland.
The offices in Poultry and at 19 6 Piccadilly are
specially equipped for the use and convenience of
American visitors in London.

Head Office : P O U L T R Y , LO N D O N , E.C. 2
OrZfseas Branch : 122 O LD BROAD S T R E E T , LO ND O N , E.C.

N orthw estern Banker

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

O ctober 1930

(Editorial, in Minneapolis Tribune)
A great m ajority o f North Dakotans
have never been able to see much o f an
industrial future fo r their state. Its
production o f wealth through the pur
suits o f agriculture has overshadowed its
industrial possibilities.
So the fact has been quite generally
forgotten that it has lignite coal deposits
estimated at 535,000,000,000 tons, cover
ing 22,000 square miles, fairly well dis
tributed over the state; that it grows
more than half the flax produced in the
nation; that it has some o f the world’s
most valuable deposits o f potter’s clay,
cement-making deposits o f great value;
live cattle and hogs sufficient to support

81
a. big packing industry, already begin
ning to develop. These are only a few
o f its comparatively unexploited natural
resources having industrial development
possibilities.
Current agricultural trends seem to be
turning the attention o f the state’s lead
ers to its industrial possibilities. They
are tremendous.
The Greater North Dakota association,
which has done a lot to sell North Da
kota, not only to North Dakotans, but to
all the world, is sponsoring a plan fo r
an industrial survey. Its objective is to
assist established industries and to en
courage new industries to come to the
state.
North Dakota has been shipping raw
material to other states and buying it
back in the form o f the finished product.
W ith a great, cheap fuel supply it is evi
dent that in many lines this condition
can be overcome, while with the perfec
tion o f processes making lignite more
available than now fo r power-producing
fuel, the state may ship coal consider
able distances at a profit.
North Dakota lignite coal now is used
as fuel to produce the power generating
electricity fo r service to 26 Minnesota
cities. That was a development un
thought o f a decade ago. In its coal,
clay and cement deposits it has a vast
resource, little considered, with poten
tialities for an industrial development
producing millions in additional wealth.
This week’s meeting at Grand Forks may
well become, through the plans laid, the
beginning o f an industrial era in the
agricultural state o f North Dakota which
will add to its tremendous wealth and
assure its future as one o f the richest
states o f the nation.

W i l l D o B r o k e r a g e B u s in e s s

Otte and Company, specialists in bank
stocks o f principal cities for the past
seven years, is now a partnership and has
acquired a membership on the Chicago
Stock Exchange in addition to their mem
bership on the Chicago Curb Exchange.
They will conduct a general brokerage
business to deal in listed securities on
various principal exchanges in connection
with their established bank stock and in
vestment service.
The partners o f the firm a re : Howard
A. Otte, M. H. Otte and J. B. Ghristerson.
Mr. Christerson recently became asso
ciated with the company after 20 years
o f investment experience. He was fo r
merly vice president o f the National Re
public Company and prior to that served
as manager o f the bond department o f the
National City Bank o f Chicago, before the
merger with the National Bank o f the Re
public.

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

Work!ngas
y ur Partner
0

H E N the Fisher C om p an y
— k n ow n to hundreds o f
ban k ers as “ B ank F ix
ture H ead qu a rters” —
m akes an installation fo r you r in
stitution you w ill find it w ork in g
as Y O U R P A R T N E R .
Q uestions o f arran gem en t, effi
cien cy, and e co n o m y are con sid
ered and fu lly discussed fro m
you r standpoint.
It is such coop era tion com bin ed
w ith qu ality p rod u cts that has
given the Fisher C om p an y its en
viab le position as “ B ank Fixture
H ead qu a rters.”

tFlsherCo.

{a B A N K F I X T U R E

GÆ¿cries

HEADQUARTERS^

Iowa,

N orthw estern Banker

O ctober 1930

82
Iowa, which bank he has been connected
with fo r the last six years. He is also
secretary o f the Ida Grove Commercial
Club. Harry D. Walter o f Lenox, Iowa,
takes Mr. Sykes’ place as second assist
ant cashier.

I OWA
SEGTION
Officers Iowa Bankers
Association

A s k s In c o r p o r a tio n

President.................. -C. C. Jacobsen
Sioux City
Vice Pres.........W alter T. Robinson
Hampton

C. C. JACOBSEN
President

Treasurer................... Jos. W. Meyer
Dubuque
Secretary............ .........Frank Warner
Des Moines

S tart In stitu te A c t iv itie s

Embryonic bank officials are on the in
crease if preliminary reports from the
Des Moines Chapter of the American In
stitute of Banking" enrollment campaign
are to be considered as indicative. Presi
dent Noel Robinson reports that the IowaDes Moines National Bank & Trust Com
pany has almost completed its drive and
has a total thus far o f one hundred and
fourteen members, both active and inac
tive. This is by far the greatest enroll
ment attained by that organization. I f
the remaining banks report as great an in
crease over last year, the Des Moines
Chapter should have from two hundred to
two hundred and fifty members fo r the
coming year, a substantial increase over
last year’s enrollment o f one hundred and
forty-one.
It is quite noticeable, and very com
mendable, that more out-of-town bankers
are taking an active interest in the Insti
tute work and participating in the bene
fits to be derived from organized study
and discussion o f the subjects pertinent to
the banking profession. Chapter officials
are making an effort to visit or to com
municate with as many banks in the sur
rounding territory as possible with a view
to stimulating this interest. That their
efforts are not without avail is to be recog
nized, since indications are that class
members will be drawn from points as far
distant as Ogden, some fifty miles away.
Institute work this year will consist o f
the following courses: Commercial Law,
Instructor, John Inghram, Attorney; Ne
gotiable Instruments, Instructor, Gordon
I. Elliott, Court Reporter; Accounting
and Analysis o f Financial Statements, In
structor, Fred J. Peterson, C. P. A., of
W olf & Company.
The Des Moines Chapter o f the Insti
tute began its year’s activities with a chap
ter dinner at the Grant Club on Septem
ber 25th, and will settle into its scholastic
role during the week o f October 6th. Any
one interested in the work may secure
additional details from Mr. Robinson at
the Iowa-Des Moines National Bank and
Trust Company.
N orthw estern B anker

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

O ctober 1930

FRANK WARNER
Secretary

W a r o n B a n d its

Since the $30,000 robbery o f the Ottum
wa Savings Bank September 9, Wapello
county bankers have declared war on bank
bandits and have just appropriated $1,000
to buy guns, ammunition and other equip
ment for county vigilance organizations.
The Wapello County Bankers Associa
tion also has posted $1,000 reward fo r the
capture and conviction o f future bank
robbers, making the offer retroactive to
include any of the five men who robbed the
Ottumwa Savings Bank.
The Iowa Bankers Association has sent
a consignment of red reward placards to
the Wapello association and they will be
placed in conspicuous places.
Members o f the vigilance committee will
be located in every town in the county
and each will be supplied with artillery
and bells.
P rep a re fo r R o b b ers

Boone’s four banks and the city are
co-operating in taking precautions against
invasion o f bank robbers. Special police
have been put on duty and a machine gun
has been purchased by the city. It will
be used fo r patrol duty and also will be
placed where it will command all four o f
the financial institutions, which are closely
located.
Sawed off shotguns have been placed in
reach o f police in case o f a bank bandit
alarm. The county is expected to follow
the action o f the city and purchase a ma
chine gun.
E le c te d D ir e c t o r

S. E. Coquillette, a vice president of
the Merchants National Bank, Cedar
Rapids, Iowa, has been elected director o f
the Swisher Trust and Savings Bank o f
Swisher, Iowa.
The election o f Mr.
Coquillette fills the vacancy on the board
o f directors caused by the death o f J. W .
Janko.

Articles
o f incorporation for the
Pleasantville, Iowa, state bank were filed
recently with the secretary o f state. The
institution is capitalized at $25,000.
Edward W . Freel is president; B. J.
Howland, vice president and manager,
and W. R. Crane, cashier. All are o f
Pleasantville.
T a k e s P o st at C lin to n

W . A. Anderson, who has been vice
president o f the Washington National
Bank, will go to Clinton, Iowa, to become
associated with the City National Bank
there.
He has been with the Washington
bank fo r the past five years. W ithin the
next few weeks the Anderson fam ily will
move to Clinton.
W alter Graves, now cashier o f the
Peoples Savings Bank at Crawfordsville,
has been elected cashier o f the W ashing
ton National Bank and will assist H. B.
Knight in the active management o f that
institution.
C lin t o n B a n k E n la r g e s

Gustiv Gradert, cashier o f the Iowa
State Savings Bank at Clinton, Iowa,
has announced that plans were now
ready for enlarging the present banking
building at the corner o f Main Avenue
and North Second Street and that work
on the new addition will be completed in
December.
A steady increase in the business o f
the institution since its organization has
brought about the requirement fo r more
room, which will be a 30x34 addition ad
joining the structure on the north side.
Business in the present banking rooms
will be uninterrupted during the im
provement period.
The plans and specifications call for
additions to the vaults which will double
their capacity and with their present
equipment and burglar alarm will be the
best that can be had.
A mezzanine floor will be a part o f the
new addition and will house the book
keeping department.
Arranged con
veniently will be a directors’ room, a cus
tomers’ room, coupon booths, two phone
booths and additional customers’ desks
in the main banking room.
Io w a B a n k in g C o n d itio n s G o o d

A s s is ta n t C a sh ie r

William H. Sykes has been promoted
to first assistant cashier o f the First
Trust and Savings Bank o f Ida Grove,

The condition o f the Iowa banking
system at present is better than it has
been since 1920 and is better than that
o f any other midwest state, according to

I f You Also
A re Interested
In I O W A ’S
P R O S P E R IT Y

H E N E V E R Iow a ban kers are in D es M oin es w e
like to have them d rop in to com p a re n otes on the
best w a ys o f k eep in g Iow a prosperous.
W

W e are “ bullish ” on Iow a. T h ere is no State like it.
W e w an t Io w a ’ s n ation a lly re co g n ize d p rosp erity to
continue. F or 35 years this ban k has g row n and p ros
p ered b y con cen tra tin g on h elp in g Iow a to exp an d her
industries and agriculture.

G R A N T M cPH ER R IN

LELAN D W IN D SO R

P r e s id e n t

V ic e P r e s id e n t

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

L Y N N G. FULLER
V ice

P r e s id e n t

an d

C a sh ier

e n t r a l n a t io n a l b a n k
AN D
TRATST C O M P A N Y

N orth w estern B anker

O ctober 1930

Io w a L it lio g r a p t iin g

C o n ip a n ii

515 T W E N T Y E IG H TH S T R E E T

D e s

o i n e »

EDWIN G. R A G S D A L E
S EC R E T A R V

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CECURITY corre^ spondents receive
the kind of service
that is constantly
p r o f i t a b l e and
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we are anxious to
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O F F IC E R S

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Leonard R. Manley............................. President
X
C. C. Jacobsen........................Vice President
X
R. Earl B row n....................................... Cashier
Delko Bloem ................................flss’t Cashier
X
Albert C. Eckert............................................ Ass’t Cashier
X
Daniel B. Severson........................ Ass’t Cashier
Elmer O . Sm eby............................................ Ass’t CashierX
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N orthw estern Banker

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

O ctober 1930

►
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L. A. Andrew, state superintendent o f
banking.
Moreover, he thinks, Iowa banks are
at their low ebb fo r the coming year.
He believes that the banks o f the state
will at the end o f the year look back on
one o f the best periods o f operations in
the last decade.
“ The steadily improving condition o f
Iowa banking is due to the inauguration
o f better banking practices due to the
work of the state department of banking
and legislative measures,” Mr. Andrew
opines.
“ The law passed by the last legislature
raising the required capital o f new
hanks from $10,000 to $25,000, and the
law passed at the same time requiring
all borrowers o f $500 or more without se
curity to present satisfactory financial
statements, have aided Iowa banks.
“ Illinois is in the same period o f de
pression that Iowa was five years ago.
Wisconsin is suffering banking difficul
ties fo r the first time in years. In Mis
souri the drought is blamed fo r poor
banking, and in Nebraska it is the reac
tion from the failure o f the bank guar
antee law.
“ Iowa ought to be the first state to
come back to normal. The ratio between
the loss o f grain and the increase in its
price is exceptionally favorable to Iowa,
and should result in better liquidation o f
loans and deposits.
“ In Des Moines the condition o f the
banking system is laudable,” Mr. A n
drew avers. “ W hile deposits are not at
a peak fo r all time, they are encourag
ingly large indicating that the territory
around the city has not been hit hard by
either the stock market crash or the
drought.”

C a sh ie r R e sig n s

E. J. Hines o f Livermore, Iowa, who
has fo r eleven years served as cashier o f
the state bank there, has resigned his
position. Mr. Hines has accepted a po
sition with the II. S. Buell Land Company
at Bozeman, Montana.
B a n k E le c ts O fficers

At a stockholders meeting o f the newly
organized National Bank o f Seymour,
held recently, the following officers were
elected:
Board o f directors: H. T. Long, A. E.
Davis, T. W . Miles, William W yatt,
W . S. Merritt. H. T. Long was elected
president; A. E. Davis, vice president;
Nora Gingerich, cashier, and Laura Lyon,
bookkeeper.
H. T. Long will soon assume active
management o f the bank.
A revised list o f the stockholders is as
fo llo w s: Mary Ruby, Harley Condra,
Velma K . Handlin, T. W . Miles, H. T.
Long, E. Desper, V ictoria Morrison,
W . O. Jamison, Mrs. D. H. Kerby, A. J.

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O R G A N IZ E D

M EM BER
FEDERAL RESERVE

18 7 7
^Ve c t v

T h e p rogressive exp erien ced
m an agem en t o f this bank,
su pported b y a stron g b o a rd
o f directors, represen tin g a
w id e ran ge o f business k n o w l
edge, presents a service p rofit
able to corresp on d en ts and at
all tim es available to you.

Glenn M. Averill, Pres.
E. M. Scott, Vice Pres.
C. C. Kuning, V. P.
and Cashier
Van Vechten Sliaiier,
Vice Pres.
Geo. F. Miller, V. P.
and Trust Officer
Marvin It. Selden,
Vice Pres.
Assistant Cashiers
Peter Bailey
Bertha M. Wolf
Geo. W. Swab
Maud W. Carpenter
It. I). Brown
O. A. Kearney

Cedar T^apidsNational Dank

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

C e d a r T^ajoids, IovOa

N orth w estern B anker

O ctober 1930

86
Shoultz, Eliza Jamison, William W yatt,
W . H. McCabe, W ill Long, A. E. Davis,
W . S. Merritt, Alice P. Clark, Florence
Stevenson, Rosina Burkhiser, Charles
Burkhiser, Mrs. Ethel Phillips, Law
rence Ruby and Nora. Gingerich.
H o ld A n n u a l S h o o t

About seventy-five vigilantes a n d
bankers attended the annual vigilante
shoot held at the Odebolt Rifle Range. A
complete program o f rifle shooting at
200 yards and 350 yards and pistol
shooting at 20 yards was undertaken by
the vigilantes with some rifle and pistol
shooting by the bankers.
First place in the team rifle shooting
was won by the Odebolt team with an
average o f 97 points per man. The
Schaller team averaged 75, Early 73,
Auburn 62, and Sac City 56. In indi
vidual shooting Earl E. Rex o f Odebolt

was high with 110, Dr. C. R. Brewer o f
Early second with 105, and B. W . Einspahr o f Odebolt third with 103. In in
dividual pistol shooting Dr. Brewer was
high with a 40, H. Trickel o f Sac City
second with 38 and Prank H. Coy of Ode
bolt third with 24.
Among the bankers the Early delega
tion was high with an average o f 17,
Schaller second with 14Y2 and Auburn
third with 14.
Among the high shooters from their
respective teams were Dr. C. R. Brewer
o f Early, H. C. Bruns o f Auburn, Lee
Zimmerman and Carl Olson o f Sac City,
Earle E. Rex and B. W . Einspahr o f
Odebolt, and Potter W hite o f Schaller.
The program was arranged so that
practice was obtained in all forms o f
shooting at different distances and posi
tions. The scores shot were above the
average. Deputy Sheriff G. M. Aber

1930

1876
Consolidated service represents every
phase of modern banking and in
cludes our sincere interest in
every individual correspondent.

C o n so lid a te d N ational B ank
DUBUQUE, IOWA
J. K. Deming, President
Geo. W . Myers, Vice President

PEOPLES
T RUST &

Jos. W . Meyer, Cashier

your service

SAVINGS

in Eastern Iowa

BANK

and

W e ste r n Illinois

Peoples T rust & Savings Bank
C L I N T O N , IOWA!
REMEMBER

IT THIS WAY — ‘ ‘ PEOPLES

TRUST”

O F F IC E R S
W . W . C O O K , President
J . Q. J E F F E R I E S , Vice Pres.
J . C. L A N G A N , Vice Pres.
W ill, M. W IL S O N , Vice Pres.
J. L. B O H N S O N , Cashier
C. S. H A R R IS , Assistant Cashier
F . W . S P A L D IN G , Asst. Cashier
E M IL J O H A N N S E N , Asst. Cashier

N orthw estern Banker

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

O ctober 1930

nathy gave a demonstration o f sawedoff shot gun shooting.
Lunch and cigars were provided for by
the First National Bank o f Odebolt late
in the afternoon.
W ife

o f B a n k e r D ie s

Mrs. Millie Heinz Vawter, wife o f H.
M. Vawter, president o f the Security Sav
ings Bank, o f Marshalltown, Iowa, and a
well-known club woman, died recently at
the Deaconess hospital, where she had
been a patient for nearly a month. Death
was due to shock following an operation
for abdominal tumors. She was taken to
the hospital on August 14th, suffering
from a ruptured appendix.
She sub
mitted to an operation at that time and
it was known then that another opera
tion would be necessary.
Mrs. Vawter was very active in club
work in Marshalltown. She was presi
dent o f the Marshalltown Woman’s Club
in 1926-27, and president o f the Marshall
town Federation o f Women’s Clubs in
1928-29. She had been serving as chair
man o f the finance committee o f the feder
ation for the new club house, which is to
be ready for occupancy in October. She
was a member o f the state board o f the
Iowa Federation o f Women’s Clubs, as
Fifth district chairman for junior feder
ation work, and was vice chairman o f the
general committee fo r the biennial con
vention o f the Iowa federation. She had
been very active in the Marshalltown
Garden Club and was president this year.
She Avas also active in the Avork o f the
Congregational church.
Mrs. Vawter Avas born Millie Heinz,
November 13, 1882. She lived in Mar
shalltown all her life except for tAvelve
years, from 1906 to 1918, when she re
sided in various places on the Pacific
coast. In 1907 she married Ivan Brandt,
who died in 1916. On August 2, 1919, she
married H. M. VaAvter.
In addition to her husband, Mrs. Vawter
is survived by her father, Edward Heinz;
two sisters, Mrs. Fred Wilts o f Mason
City, and Miss Gussie Heinz, and a
brother, Edward Heinz, o f Chicago.
W i t h E d w in B ir d W il s o n

R. Edward Hotze, Jr., has joined the
Edwin Bird W ilson organization and 'will
be connected with the Chicago branch o f
that Advertising Agency Avliose head
office is at 120 W all Street, NeAv York,
with branches also at Atlanta and Los
Angeles.
Because o f his long connection with
banking activities, Mr. Hotze is well
knoAvn throughout the country.
In 1910 he entered the employ of the
First National Bank o f Richmond, V ir
ginia, resigned in 1920 to become New
Business and Advertising Director of the
Seaboard National Bank o f Norfolk.
Later he became Assistant Cashier in

87
charge o f Business Extension o f the
Planters National Bank o f Richmond.
F or many years he has been a familiar
figure at A. B. A. and State Bankers con
ventions, and never missed a convention
o f the Financial Advertisers Association
o f which he was 3rd vice president when
he discontinued his banking connections
in 1925.

COMMERCIAL

Mr. Hotze was also active in the affairs
o f the American Institute o f Banking,
having graduated in major study courses
in 1920.
In 1925 he joined Robert Grieg in form
ing the National Service Bureau o f New
York and retained that connection until
the present year.
In his home city o f Richmond, Mr.
Hotze was form erly president o f the A d
vertising Club, a member o f the Trade
Bureau o f Richmond, Chamber o f Com
merce and Kiwanis, and has delivered
many talks on business subjects to or
ganizations in that trade territory.

NATIONALBANK

No good vacation is complete without
plenty o f golf, in the estimation o f Homer
W . Van Horn, well knovm cashier o f the
Dunlap Savings Bank, at Dunlap, Iowa.

be a pleasure to

It w i

A n n o u n c es R ew ard

show
to

you

your

strong,

that

interest

much

to have a

progressive

co rre

spondent contact in W aterloo.
Bank with the Commercial
National and assure your insti
tution of such a connection.

E. W . M IL L E R

S. C. KIMM

President

Assistant Cashier

JAM ES M. GRAHAM

R. L. PENNE

Vice President

Assistant Cashier

H. W. W E N T E

CHAS S. M cK IN S T R Y

Cashier

Assistant Cashier

HOMER W . V A N HORN

He is shown here about to take to the
links while on vacation recently at Lake
Okoboji.
Incidentally Mr. Van Horn advises that
his bank is offering a reward o f $500 to
any person or persons fo r the capture,
dead or alive, o f anyone robbing or at
tempting to rob that institution.

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

The Commercial National Bank
W a t e r l o o .Io w a

N orth w estern B anker

O ctober 1930

88
A ged B an ker D ead

J o in s A . C . A l l y n S ta ff

Kenton Warne, vice president o f First
National Bank, Philadelphia, passed
away Monday, September 8th, 1930, at
the age o f eighty-four.

Ray Humphrey who organized the bond
department o f the First Iowa State Trust
and Savings Bank o f Burlington, Iowa,
in 1923, and has been its manager fo r the
past eight years, has resigned from that
position to join the sales staff; o f A. C.
Allyn and Company. He will have head
quarters in Burlington and will represent
the company in eastern Iowa and west
ern Illinois.
Mr. Humphrey is succeeded as bond
department manager in the bank by the
assistant manager, George S. Beuekinan,
who has been with the department for
eight years and is well known both in
Burlington and among the bank’s corre
spondent bank accounts.

Mr. Warne became identified with the
First National Bank in 1864, and there
fore served practically 66 years. He was
elected assistant cashier in 1886, cashier
in 1902 and vice president in 1910. He
has been secretary o f the board o f direc
tors for 45 years, and missed only 7
board meetings in that time.
He probably holds the record for the
longest continuous service with one bank,
except possibly Andrew J. Frame, o f
Waukesha, Wis.

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O ctober 1930

Mr. Humphrey prior to his entry into
the investment business in 1923, was for
seventeen years with the Robert Donahue
company, hardware concern and was sec
retary and general manager.

FIG HTIN G THE FOE
Address by W. W . Bowman, Secretary
Kansas Bankers Association, Topeka, be
fore State Secretaries Section meeting,
American Bankers Association Conven
tion, Cleveland, Ohio, September 30,
1930.

HE Protective Committee o f the
Secretaries Section, appointed by
President Graettinger, convened on
call o f the chairman in Colorado Springs,
Colorado, Monday and Tuesday, July 21
and 22, 1930, devoting the full time of the
sessions to the earnest consideration of
matters pertaining to the protection o f
hanks against the wiles and devices and
overt attacks o f criminals to which all
banking institutions o f all the states are
daily subjected. Present at this meeting
were Secretaries Philpott, o f Texas, Gum,
o f Oklahoma, Scarboro, o f Colorado, and
Bowman, o f Kansas, members o f the com
mittee ; and Secretaries Graettinger, o f
Illinois, and Wait, of Arkansas, president
and secretary respectively, o f the Secre
taries Section and members ex-officio o f
the committee.
The committee considered :
First, the extent and character o f p ro
tection and prevention possible and prac
tical fo r each and every individual bank
itself to provide.
Second, the obligation of the sovereign
state to safeguard the life and liberty and
property o f its citizens.
Third, some observations which in
the judgment o f the committee would
strengthen and tend to increase the effi
ciency o f the protective department o f
the American Bankers Association.
By way of distinction the foregoing
matters are presented under divisions A,
B, C, and D.
A — SELF P R O TE C TIO N :
Nothing
is truer than that self-preservation is the
first law o f nature. This applies pecu
liarly to the profession o f banking and all
that that implies.
It therefore is incumbent on the banker
to surround his business and equipment
with every possible safeguard.
It is,
therefore, recommended that the follow
ing safety methods be adopted wherever
possible.
First, every bank at all times should
carry in vault and till only the minimum
of its actual cash requirements. Undue
and unnecessary exposure o f cash and
securities is dangerous and invites attack.
Second, it is unsafe fo r the property o f
the bank and unjust to the officers and
employes that a single officer or em
ploye be left alone in the bank during
business hours.

This should especially apply to the noon
or luncheon hour, it being far safer to close
and lock the bank rather than fo r it to
remain open to this danger.
Third, before opening and after closing
hours no one other than employes should
be admitted, except by special arrange
ment. And it is further considered ad
visable that outside window shades and
blinds be not lowered while bank is closed
to the pubic.
Fourth, fiixtures surrounding working
space should be locked and no admittance
be granted to other than employes and
officers.
Fifth, every protective device, electrical
and otherwise, within the reasonable means
and requirements o f the bank should be
installed— preferably “ silent” alarms con
necting with the peace officers.
Sixth, every bank should provide ade
quate burglary and hold-up insurance re
gardless of its equipment, but banks are
admonished not to place sole reliance on
insurance as a protection. Obviously a
lack o f preventives tends to increase such
crimes with consequent increase in insur
ance rates.
Seventh, each banker should ever keep
in mind that no bank is immune from
criminal attack, and should be constantly
on guard fo r the protection o f the life
and property within his keeping.
Eighth, it should be the uniform and in
variable rule o f all banks to refuse to
cash checks for unidentified strangers.
Laxness in this regard visits loss on the
banks and encourages bad check artistry.
Banks should also administer like caution
to merchant and other customers against
accepting checks from strangers in ex
change fo r merchandise or cash.
Ninth, banks are admonished to with
hold from publicity, after a burglary or
robbery attack, any mention o f overlooked
cash or securities which the burglar or
robber may have failed to reach. The
distributing and secreting of cash and se
curities fo r the purpose o f better protec
tion may be commendable, but the broad
casting o f such information is obviously
ill advised.

G. L. CURTIS,
President
MILO J. GABRIEL,
Vice President
W. A. ANDERSON
Vice President
O. P. PETTY,
Vice President and Cashier
J. H. NISSEN,
Assistant Cashier
H. G. KRAMER,
Assistant Cashier
H. M. OLNEY,
Assistant Cashier

The
City National
Bank
Clinton, Iowa

Sixty Years of
Continuous, Conservative,
Safe Banking Service
(TVYvTò

Your Account Invited

D IR E C T O R S

C. A. ARMSTRONG,
President C. F. Curtis
Company, Inc.
A. P. BRYANT,
Manager of Operations
Clinton Corn Syrup
Refining Co.
O. D. COLLI S
President The Collis Co.
E. J. CURTIS,
Vice President Curtis Bros.
& Co.
G. L. CURTIS,
President
President Curtis Companies,
Inc.
G. W. DULANY. JR.,
President Eclipse Lumber
Co.
Chairman Climax Engineer
ing Co.
MILO J. GABRIEL,
Vice President
President Gabriel Lumber
& Fuel Co.
B. M. JACOBSEN,
President Clinton Thrift Co.
J. PETERSON
O. P. PETTY,
Vice President and Cashier
H. W. SEAMAN
J. O. SHAFF,
Farmer and Live Stock
Dealer
W. R. SMITH,
General Manager
Clinton Com Syrup
Refining Co.
F. H. VAN ALLEN,
President J. D. Van Allen
& Son, Inc.

C lin to n
C o u n ty’s
L a rgest
Bank

Audits
B— A U D IT S :
The grave legal and
moral responsibility o f bank officers and
directors should prompt them to insist
that at least two independent audits o f the
affairs o f the bank be made each year by
responsible auditors, in addition to regu
lar governmental examinations.
C— OBLIGATION S AND DU TIES
OF THE S T A T E : A fter all, the chief
duty o f protecting the lives and property
o f its citizens, as represented individually
or in corporate capacity, devolves upon
the state. Citizens should aid in every
way possible but in the last analysis the
state must be depended upon to fulfill this
paramount obligation.
Therefore, it is urged upon each State
Bankers Association to continually ad
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C ity National Bank
CLINTON IOWA
N orth w estern B anker

O ctober 1930

90
vocate the establishment o f some form
o f state-wide protection, either bureaus
or criminal identification and investiga
tion or state constabularies, etc., such as
now exist in a number o f states.
Eat M ore

Recently the jewelers were told that
what the country needed was more ex
travagant spending. Now the bakers in
convention assembled are listening to
pleas for increased eating. Substitute joy
in eating fo r pride in fasting and the
problem o f farm surpluses will be solved.
The sugar producers feel much the same
way about the advantages to be derived

from unrestrained consumption o f confec
tionery products. Textile manufacturers
are also sure that business would improve
if only people would buy many and volum
inous garments.
And any number o f
economists when addressing business or
ganizations voice their conviction that the
world is suffering from lack o f all those
articles which their audiences are pre
pared to supply.
W e might be spared some o f this advice
to expand our appetities in all directions
if speakers would take a few minutes to
consider the implications of what they
urge. In fact the consumer is being asked
to buy more o f everything at a time when
he is often unable to pay fo r pressing

L i f e ’ s L ittle Ir o n ie s

strong, progressive
bank, where your Des
Moines business has the
personal a tte n tio n o f
officers whose interests,
like your own, are cen
tered on Iowa.

BANKERS TRUST CO.
BAN K

Cor. 6th and Locust Sts., Des Moines
Capital $1,000,000.00

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immediate necessities. Even when times
are good, wholesale changes in consump
tion habits, whether they affect eating,
clothing or adornment, entail correspond
ing readjustments in outlays injurious to
some lines o f business.
In other words, the average man spends
what he makes. When he spends more
fo r this thing, it is a foregone conclusion
that he will have less money to use in
buying something else. The blind habit
o f concentrating attention on any single
industry or group of industries when in
search o f ways and means to bring about
prosperity may be excusable in the igno
rant, but it is the business o f trained
advisers to see the economic and business
structure as a whole. I f they do, they
must realize that slogans and formulas
cannot bring about revival. That is a
slow process and only sure in proportion
as it is based upon acceptance o f the buy
ing habits of the people, and accurate
gauging o f their ability to pay fo r what
they consume.— Prom New York Journal
o f Commerce.

Surplus $200,000.00

Men are forced into strange adaptations
during their journeys through this vale o f
tears. Nicholas Roosevelt spent years in
studying the orient, and particularly the
Philippine Islands. He wrote books that
showed an acute and original comprehen
sion o f our problems in the Philippines
and the necessary methods o f solution.
Consequently President Hoover nominated
him to be vice-governor o f the Philip
pines, in which capacity he would super
vise all educational work by the govern
ment. As the senate did not act on the
nomination before adjournment, the presi
dent gave Mr. Roosevelt a recess appoint
ment. But the Philippine legislature had
already protested, because Mr. Roosevelt
believes in educating the various peoples
o f the Philippines according to their ac
tual mental quality, instead of piously
assuming that they feel and reason like
westerners. And the radicals in the United
States senate were prepared to resist the
nomination during the approaching ses
sion o f congress. Naturally this squabble
was repugnant to Mr. Hoover. So Mr.
Roosevelt lias written what is on its face
a voluntary resignation o f his vice-gov
ernorship o f the Philippines, and Mr.
Hoover has covered his own and Mr.
Roosevelt’s embarrassment by making him
minister to Hungary. Having spent years
in qualifying as an expert on the Philip
pines, Mr. Roosevelt goes to Hungary.-—
From Chicago Journal o f Commerce.

R e tu r n s to C a m b r id g e

O f interest to his many friends in the
investment business is the fact that Robert
S. Talbott, who is associated with MeO ctob er 1930

91
Murray Hill and Company, investment
bankers o f Des Moines, has returned to
Cambridge where he will complete the
course o f the Harvard Graduate School of
Business Administration.
This particular division o f Harvard
University has an international reputa
tion. Not only do a great many younger
business men take post-graduate work at
this institution but many executives with
years o f experience go there that they
may keep in touch with the most modern
trends of finance and industry.
McMurray Hill and Company report a
very satisfactory business in this terri
tory, and anticipate a steady demand fo r
high class securities.

Retires After 24 Years
A fter assisting in the organization and
serving as its president from the date
o f its organization, W . J. Guinn tendered
his resignation at the regular monthly
meeting o f the board o f directors o f the
Corn Belt Savings and Trust Bank at
Belle Plaine, Iowa. Mr. Guinn explained
that the weight o f advancing years was
making itself felt more and more and
that he considered it imperative he be
relieved from further activities with the
bank. Election o f a successor was de
ferred to a later meeting o f the direc
tors.
While Mr. Guinn resigns as president
and as a director, he retains his stock in
the institution.
It was twenty-four years ago that the
Corn Belt Bank was organized with
W. J. Guinn, Dr. C. J. Snitkay, Dr. J. A.
Williams and I. W Van Nice at the head
o f the organization committee.
Mr.
Guinn was named as the first president
and has continued in that position ever
since. The first cashier was I. W . Van
Nice o f Jackson township, now deceased,
and he held the position four years when
he resigned and W . A. Irwin was named
as his successor.

T h e Personnel of
O ur D irectors
tells this interesting s to r y :
HE Directors of the FIRST NATIONAL
BANK of Davenport all are men of wide and
varied experience.

Each offers an enviable record of achievement in
his own business. And their activities are not in one
field, hut in all the essential industries;— manufac
turing, retailing, mining, lumbering, publishing and
law.
This means that their interests cover a wide range
and the ability of this Bank to serve its customers is
equally wide.
The breadth of experience of our Directors and
the splendid banking facilities we offer you, make
the FIRST NATIONAL BANK of Davenport a val
uable Banking connection in this territory.
IRVIN J. GREEN
President

F. W . MUELLER
Building Materials

E. J. BETTENDORF
Manufacturing

HENRY W . NEUMAN
Retail Automobiles

Business Cycles

GEO. W. CABLE
Lumber

M. N. RICHARDSON
Timber Lands

(Continued from page 16)

WM . M. BRANDON
Cashier

CARL RICHTER
Clothing

CHAS. GILCHRIST
Coal Mines

AUG. E. STEFFEN
Capitalist

JOE R. LANE
Attorney

FRANK D. THROOP
Publisher

tion. Through the means o f installment
purchasing, consumption had apparently
kept pace with production. It was in
evitable, however, that the installment pur
chaser who had mortgaged his future,
must come to a realization that he must
curtail his purchases until he could catch
up with present commitments.
These and other factors naturally lead
to a period o f overproduction and the
confidence that business prosperity must
continue forever, gradually gave way to
some doubt. Retail sales began to fall
off, the retailer realized that his heavy in
ventories and reduced sales necessitated a
reduction in his purchases; this, in turn,
affected the wholesaler and the manufae
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First jNationalBank
A t Second street and Main
Davenport, Iowa

bounded w ith v is io n

ok-

B u ilt bar S e rv ic e

N orth w estern B anker

O ctober 1930

92
turer and a general slacking o f business
occurred all along the line. Doubt gave
way to fear and during the last few
months it seems that the element o f fear
has dominated business in general. The
manufacturer, wholesaler, retailer and
consumer have all been afraid to make
commitments, not knowing what the future
had in store. This has brought about a
period o f stagnation, resulting in non
employment and a minimum o f purchases
on the part o f the consumer. During this
period o f depression, however, we have
been producing shortages.
Economists
claim that the consumption o f commodi
ties is off about 10 per cent from normal
and that production is off at least 25 per

cent.
This being true, inventories all
along the line have gradually been re
duced and have now reached a low point
which will make increased production
necessary.

May Show Upward Trend
N A N T IC IP A T IN G a revival o f busi
ness a variety o f estimates have been
made as to just when this revival, or im
provement, should be noticeable. While
there are many indications that business
has improved, we do not believe that the
October 1st earning reports will reflect
much improvement due to the fact that
any turn fo r the better has been during
the last few weeks o f the present quarter.

HE reputation of this
bank is founded upon
seventy-four years of
constant service— a most cer
tain guide for those who wish
banking satisfaction — repre
sented by profitable service
and substantial st abi l i t y.

NationalBank
Established, by John H.Leavitt in 1656
Waterloalowa
IRA RODAMAR
President
J. O. TRUMBAUER, Vice President
FRED H. W R A Y, Vice President and Cashier

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O ctob er 1930

Basing an opinion upon all the facts, how
ever, it seems that the last quarter o f 1930
should result in more satisfactory earn
ings and that the January 1, 1931, earn
ing reports should reflect an upward trend
in business generally.
A representative o f the Department o f
Commerce recently stated that many o f
the orders o f goods for fall delivery have
been placed on a tentative basis. He
stated, however, that should these orders
ripen into confirmed orders, it would
mean exceptional activity on the part of
the American manufacturer in order to
make deliveries.
W e therefore believe that the business
cycle has passed through a period o f over
production and stagnation and has now
reached the point where improvement
may reasonably be expected.
It is often believed that the stock mar
ket crash o f the fall o f 1929 is entirely
responsible fo r the present business de
pression. It should be remembered, how
ever, that production and earnings had ac
tually begun to show a decrease with the
period commencing July 1, 1929, while
the stock market crash did not occur until
late in October. Many people feel that
the stock market crash was due to a short
age o f money and credit in the United
States. This belief is also false as there
was at no time any lack o f money or credit
for legitimate needs. The banking system
o f the country is often blamed for per
mitting too much money to flow into
speculative channels but the records show
that the greater part o f the money which
flowed into New York came from indi
viduals, corporations and foreign interests
and not from the banks themselves. When
the stock market crash came, the greater
part o f the money that was withdrawn
from the call money market was called by
these same individuals and corporations
and not by banks.
In spite o f criticism which may have
been directed against the Federal Reserve
System we believe they have chosen a
wise and safe course and that the wisdom
o f their policy is now evident. They were
faced with the perplexing problem o f try
ing to fix a price fo r money high enough
to prevent money and credit from flowing
into speculative channels, and at the same
time, keeping the price low enough that
the legitimate users o f credit could obtain
it without paying a penalty. The Fed
eral Reserve System is now being criti
cized fo r trying to maintain a cheap
money policy. W e believe, however, that
just as soon as the business interests of
the country are able to absorb the sur
plus o f the funds now available, the
money rates will adjust themselves. W e
believe that it is just as difficult for the
price o f money to be regulated by legisla
tion as it is for the price of farm or other
commodities to be regulated. The inevi
table law o f supply and demand takes care

93
o f these matters and no amount o f legis
lation can change economic laws.

Brazil’s Plight
H IS is illustrated by the plight in
which Brazil now finds itself. For
years they controlled the coffee market of
the world. As the coffee tree grew in size,
production increased and it was believed
that the price o f coffee could be controlled
by storing the surplus. As a result, the
surplus crops have accumulated to such
an extent that coffee is now a drug on the
market and instead o f being able to
realize a higher price on the coffee which
has been stored, it is now impossible to
dispose o f this surplus at any price. W e
believe the same result may be expected
from an effort to control the price o f corn,
wheat, cotton, or any other o f our agri
cultural products.
The surplus must
eventually be released and it seems that
more could be accomplished by curtailingproduction than by trying to control the
surplus.
In the industrial field we find that co
operative efforts have enabled the manu
facturer to control production so that the
supply can keep pace with the demand.
Just as soon as the agricultural interests
o f America can learn this lesson o f co
operation, the farm problem will he
solved.
Reference has been made above to in
stallment purchases. It must be admitted
that this practice raises the standard of
living in many of the American homes and
has enabled families to enjoy conveniences
and comforts which they would not have
otherwise had. W e believe, however, that
the privilege and ability to purchase be
yond our immediate means has gone too
far. The tendency to keep up with our
neighbors has brought about the financial
embarrassment o f banks, manufacturers,
merchants, and individuals.

I his bank is prepared

render to banks, commercial
and industrial interests-a com
prehensive

friendly

service.

J. L. MITCHELL
President
H. B. SCOTT, Vice President
H. A. GOOCH, Vice President
J. P. HAINER, Cashier

F. R. KIRK, Assistant Cashier
L. M. ASHLEY, Assistant Cashier
GEO. J. N. SMITH, Assistant Cashier

Dress Up Your Windows for
Autumn Time
(Continued from page 15)
size, loaded with coins o f small denom
inations, are headed toward “ Easy Street.”
A t the other end of the window, a road
should be made o f mud and branching off
from the road leading to “ Easy Street.”
A t the end o f the road is a rock pile. On
this mud road is a battered looking auto
bearing a small card with the wording
“ Spend as you go.” Since tourists write
various messages on their cars, it would
be as well to paint the words on the car
as to use a card. The background is a
design o f wall paper in scenic design. The
poster in this case has the appearance o f
being a road sign, worded “ The road to
Easy Street is paved with systematic Sav
ing. Is your road paved or are you stuck
in the mud o f ‘ Spend as you go’.”
In the fall, when house cleaning is on,
is a splendid time to feature a window

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Federal Reserve Bank of St. Louis

Speed— Accuracy— Satisfa ction
T 7T D C H P
r

lr V k 3

IO W A STATE
D
T R U ST & SA Y IN G S

\ T I 7

D / V u N IV

Capital $600,000.00

BURLINGTON, IO W A
N orth w estern B anker

O ctober 1930

Established

Resources

1872

$8,900,000

The increased resources and
f a c i l i t i e s of the V a l l e y
National Bank enable it to
offer a correspondent service
complete to the last detail.
Friendliness, promptness and
an understanding knowledge
of modern banking require
ments guarantee to you per
fect satisfaction in the hand
ling of your account.

Valley National
DES

M O I N E S
OFFICERS

R. A. C R A W F O R D , President
___
CHARLES W . E N Y A R T , V ice President
D. S. CH A M B E RLA IN , V ice President
C. T. COLE, JR., V ice President
W . E. B A R R E T T , Cashier
C. O. CRAIG. V ice President
C. M. C O R N W E L L , Assistant Cashier

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O ctober 1930

o f antiques, borrowed from bank cus
tomers, and others. Such a display is o f
unusual local interest. While the main
poster may carry some bank message; it
is not necessary, as the interest in an
tiques is sufficient to make this display
o f great benefit to the bank without any
tie-up being used. Typed slips should
hear the name o f the person loaning each
article and in some cases it may be wise
to tell a little o f the history connected
with it, also. Perhaps no display wins
more friends than an antique display in
which so many feel they have a part.
There is some work connected with this
but it is well worth the effort put into
getting the articles together. And, along
this line, Armistice Day displays may be
made very simply by borrowing war
relics, o f which nearly every home
boasts a few.
Another fall display may feature a
“ horn o f plenty,” out o f which may be
pouring fruits, vegetables or, possibly
grains. I f room is available, typed slips
may mention the persons growing each
one but this is not necessary. However,
if anything unusual, such as especially
large or odd shaped vegetables, etc., can
be shown, the names o f the persons
growing them should be mentioned. To
make a “ horn o f plenty” you need fairly
heavy wrapping paper and gummed tape.
It would probably be wise to make a
“ horn” measuring about thirty-six inches
in length. In order to get the proper
curve to the horn, it should be made up
in sections from six to eight inches long
and then each section fastened together
with gummed tape. When the frame o f
the horn is completed, it should be
wrapped with gay colored crepe paper
and wound with rope tinsel. Pin the tin
sel at the point and wind it, leaving
about four inches between each line of
tinsel. Black crepe, pasted around the
large opening and allowed to go back
into the horn gives it a neat appearance
on the inside. Make a large ring o f cot
ton batten to fit around the large open
ing. This should be covered, also, with
gay crepe and also wrapped with tinsel.
This may be pinned in place as a trim
ming at the large end o f the horn. The
poster may say, “ The horn o f plenty
holds a rich harvest fo r you, if you save
systematically.” Or, a reference may be
made to the fact that you “ Gather your
harvest four times a year, if your funds
are placed in our Savings Department.”
To support figures or posters in win
dows, perhaps no better method could be
used than to get fairly heavy wire and
cut it in lengths o f about 18 inches.
Bend one end o f this wire back and
forth, leaving about three or four inches
to the completed loop. Place the looped
part o f the wire on the back o f whatever
you wish to support, and hold in place
with gummed tape, then by pulling the
straight part o f the wire out from the
poster, you have an excellent support.

G e ttin g P e r s o n a l

P le a s in g S o lo m o n

O h , So S w eet

A company had opened a new swim
ming bath in the place, and as a compli
ment sent a free ticket to the Senior
Counselor o f the local U. C. T.
That worthy man was very pleased.
But he began to wonder when another
ticket arrived.
Sitting down, he wrote to the bath
proprietors as fo llo w s :
“ Gentlemen: Your first ticket I re
ceived as a compliment. Your second
strikes me as being rather suggestive. I f
you send me a third I shall take it as a
personal insult.”

K ing Solomon had occupied the royal
box on the opening night of the musical
comedy, and naturally the producer was
anxious fo r his approbation.

“ When I was a little child,” the top
sergeant sweetly addressed his men at
the end o f an exhaustive hour o f drill,
“ I had a set o f wooden soldiers. There
was a poor boy in the neighborhood, and
one day after I had been to Sunday
School and listened to a stirring talk on
the beauties o f charity, I softened
enough to give them to him. Then I
wanted them back. Mother heard me
crying and sa id :
“ ‘Don’t cry, Bertie, some day you’ll
get your wooden soldiers back.’

B ir d C o n s e r v a tio n

“ You naughty, cruel b o y !” said the
fashionably dressed young woman to the
boy she had found despoiling a, bird’s
nest. “ How can you be so heartless as
to take those eggs? Think o f the poor
mother bird when she conies back and— ”
“ That’s all right, miss,” interrupted
the boy; “ the mother bird is dead.”
The young woman’s expression re
flected disbelief. “ How do you know ?”
she asked, sharply.
“ She’s on your hat,” was the reply.
J u st L ik e T h a t

Mandy— “ You-all reminds me o f one
o f them flying machines.”
Rastus— “ How cum, woman, how cum?
Cause I is such a high flyer?”
Mandy— “ No, sah, cullid man; it’s jest
’cause you ain’ t no use on earth.”

“ What did you think o f that chorus
your M ajesty?” he asked nervously.
“ G reat!” ejaculated the potentate.
“ I ’d like to date up the first three rows
some evening.”
T h e W i s e C a ll B o y

For four consecutive nights the hotel
proprietor watched his fair, timid guest
fill her pitcher at the water tap.
“ Madam,” he said on the fifth night,
“ if you would ring this would be done
fo r you.”
“ But where is my bell ?” she asked.
“ Beside your bed,” replied the proprie
tor.
“ That the b ell!” she exclaimed. “ Why,
the boy told me that was the fire alarm,
and that I wasn’t to touch it on any ac
count.”
T h e R e a l T r o u b le

The vicar was administering consola
tion to a parishioner who had recently
lost her husband. “ Ah, Mrs. Foggett,”
he said unctuously, “ we never realize the
full value o f anything until we lose it !”
“ No, sor,” said Mrs. Foggett, “ but ah
sha’n’t realize nothin’— poor Bill didn’t
carry no accident insurance.”
F ig u r in g N e t P r o fit

“ Which do you like better, balloon
tires or high pressure tires?”
“ I like balloon tires better.”
“ What kind o f a car do you drive?”
“ I don’t. I ’m a pedestrian.”
In 1880 she was a belle. By 1900 she
was an old maid. Then 1910 found her a
spinster.
She discovered in 1920 that
she was a bachelor girl. Now in 1930
she had her face lifted, bobbed her hair,
got a permanent, bought a three-joint
cigarette holder and has started all over
again.
Dentist: “ I ’m sorry but I ’m out of
gas.”
Sweet Patient: “ Ye gods, do dentists
pull that old one, t o o !”

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

Neighbor (looking over garden fence) :
“ Have your bees done well this year,
Brown ?”
Brown: “ Well, they haven’t given
much honey, but they’ve twice stung
peddlers rapping at the door.”

“ And believe me, you lopsided, mut
ton-headed, goofus-brained set o f certi
fied rolling-pins, that day has come.” —
New York Central Lines Magazine.

A l l A l ik e

Big Boss (angry at having been kept
waiting at the station) : “ So you had
difficulty in finding me, eh ? Didn’t your
sales manager describe m e?”
Chauffeur. “ Yes, sir; but there are so
many bald-headed gentlemen with red
noses.”
S tro n g M o tiv e

The district attorney was determined
to shake the evidence o f the defendant.
“ Now my man,” he thundered, “ you
have stated that you made a 200-mile
journey to New York to look for a job.
I say that another and stronger motive
brought you.”
“ Quite right,” admitted the defendant.
“ Ah, now we are getting on,” ex
claimed the pleased district attorney,
“ and what was that motive ?”
“ A locomotive.”

P r o m o te d to P la n k -W a lk e r
The Age of W om en

A young lady, finding herself stranded
in a small town, asked an old man at the
station where she might spend the night.
“ There ain’t no hotel here,” he replied,
“ but you can sleep with the station
agent.”
“ S ir!” she exclaimed, “ I ’ll have you
know I ’m a lady.”
“ That’s all right,” drawled the old man.
“ So is the station agent.” — Clips and Cuts.

“ Come, come, my man, you’ve been
looking around here a long time without
buying. W hat do you want?”
“ Guess I want another floorwalker,”
replied the old gentleman. “ I ’m the new
owner.”
First Classman (inspecting plebe) :
What are you doing with your socks on
wrong side out?
P lebe: My feet got hot and I turned
the hose on them.
N orth w estern B anker

O ctober 1930

t f r iò

t f d

r t i s z

r s

F ir s t N a tio n a l B a n k of D a v e n p o r t .. . 91 M u eh le, R e a m & M c C la in .................
68
A . B. A . C h e q u e s ...............................................3 5 F ir s t N a tio n a l B a n k , S io u x C ity ..........93
M u rp h y Co., T h o s. D ........................................ 74
A. C. A lly n & C o ................................................46 F ir s t W is c o n s in N a tio n a l B a n k ............. 36
A m e r ic a n C o m ’l & Sav. B a n k .....................25 F is h e r C o m p a n y ................................................81
N
A m e r ic a n S e c u ritie s C o ............................... 4 2 F o r e m a n -S ta te N a tio n a l B a n k ................. 2
F o r e m a n -S ta te C o rp o ra tio n .....................29 N a tio n a l B a n k o f th e R e p u b lic ................30
N a tio n a l C ity C o ................................................34
N o r th e rn T r u s t C o ............................................. 78
N o r th w e s te r n N a tio n a l L ife In s. C o . . 64
B a b c o c k , R u sh to n & C o ............................. 60 ~
.
. G .
B a lla r d -H a s s e t t C o ......................................... 40 G e n e ra l M o to r s A c c e p ta n c e C o r p . . . . 5 6
B a n c N o r th w e s t C o ............................................ 9
B a n k e r s T ru st Co., D e s M o in e s ..............90
B a n k e r s T r u s t Co., N e w Y o r k C i t y . . .35
B e c h te l & Co., Geo. M .................................... 4 7
B eh Co., C a rle to n D ........................................ 4 1
B e ll T e le p h o n e S e c u ritie s C o . . . ........... 31
B r o k a w & C o m p a n y ........................................ 52
B y lle s b y & Co., H . M ........................................ 5 3

C edar R a p id s N a tio n a l B a n k ..................... 85
C e n tra l H a n o v e r B a n k & T r u s t C o . . . 4
C e n tra l L ife A s s u r a n c e S o c ie t y ............ 6 6
C e n tra l N a tio n a l B a n k & T r u s t C o . . .8 3
C e n tr a l T r u s t Co. o f I llin o is . ..................... 9 7
C h ase N a tio n a l B a n k ...................................... 3 3
C ity N a tio n a l B a n k ...........................................89
C o m m e rc e N a tio n a l B a n k ............................ 87
C o n so lid a te d N a tio n a l B a n k ....................... 8 6
C o n tin e n ta l 111. B a n k & T r u s t C o . . . . 6

D
D e s M oin e s L ife & A n n u ity C o ..............67
D r o v e r s N a tio n a l B a n k .....................
77
D u tr o & C o ............................................................ 5 7

O
II

H a n c h e tt B o n d C o ............................................. 42
......................................27
H a n n a^ C o ., W . D
H o te l G o v ern o r C lin t o n ................................. 64

In te r n a tio n a l H a r v e s te r C o ....................... 48
I o w a B o n d C o r p o r a tio n .................................46
I o w a -D e s M o in e s N a tio n a l B a n k ..........98
Io w a L ith o g ra p h in g - C o ................................. 84

. 68
F

F e d e r a l S u r e ty C o ...........................................6 5
F ir s t Io w a S tate T r. & S a v in g s B a n k .93
F ir s t N a tio n a l B a n k , C h ic a g o ............... 7

THE

eP u y

R
R o y a l U n io n L ife In s. C o ...............................62

L a M o n te & Sons, G e o r g e .................................37
L a m s o n B r o s ...........................................................61
L a n s fo r d & C o ....................................................... 44
L e e, H i g g in s o n & C o ...................................... 50
L iv e S to c k N a tio n a l B a n k , O m a h a . . . .74
L iv e S to c k N a tio n a l B a n k , S io u x C i t y .70

BANKER

AND

S
S e c u r ity N a tio n a l B a n k ................................. 84
S illim a n & C o ., V ic to r J .................................59
S m ith , B u rris & C o ...........................................45
S to c k Y a r d s N a tio n a l B a n k ....................... 73
T

M c M illa n & Co., W . B ................................... 61
M cM u r ra y H ill & C o ........................................ 55
M a so n C ity B r ic k & T i l e ............................ 6 8
M a tth e w s & L e w is C o ................................... 38
M e rc h a n ts N a tio n a l B a n k ........................... 5
M e tc a lf, C o w g ill & C o ................................... 43
M id la n d B a n k L t d ............................................. 80
M id la n d N a tio n a l B a n k & T r u s t C o . . 75
M o rr iso n H o te l ..................................................79

NORTHW ESTERN

P u b l is h e d

P
P a r is h & Co., F r a n k P ....................................49
P e o p le s T r u s t & S a v in g s B a n k ................ 86
P h ila d e lp h ia N a tio n a l B a n k ....................... 72
P io n e e r N a tio n a l B a n k ................................. 92
P o lk & C o ., H a r r y H ........................................ 54
P o r te r, P o x & C o ................................................44
P rie s te r, Q u a il & C u n d y ...............................58
P ro v id e n t S ta te S e c u ritie s C o .................. 51

.60

J a c k le y -W ie d m a n & C o .

M
E lm s H o te l . . .
E p p le y H o te ls

O h rstro m & Co., G. L ......................................61
O m ah a N a tio n a l B a n k ................................... 68

THE

T od d

C o m p a n y .....................................................32
V

V a lle y N a tio n a l B a n k . . . ............................ 94
W
W a lla c e -H o m e s t e a d C o ................................. 68
W h it e , P h illip s & Co., I n c ............................ 40

T E R R IT O R Y

COVERS

P u b l is h in g C o m p a n y

555 Seventh Street, Des Moines
C L IF F O R D D E P U Y
Publisher

R. W . M O O R H E A D
Editor

G ER ALD A. SNIDER
Associate Publisher

L. D. V A N D ORAN
Associate Editor

F R A N K P. SYM S
Vice President

W M . H. M AAS
Vice President

Chicago Office: W m . H. Maas, 1221 First National Bank Bldg., Phone Central 3591
New York Office: Frank P. Syms, 25 W est 45th Street, Phone Bryant 4867
Milwaukee Office: 68 E. Wisconsin Ave., Phone Broadway 4916
Minneapolis Office: Frank S. Lewis, 840 Lumber Exchange, Phone Main 3865

NORTH DAKOTA

a ffi

s ciJ T M tm R o -^

IO W A
Official Publication of
T H E S O U T H D A K O T A BAN K E R S A S S O C IA T IO N
T H E I O W A FARM M O R T G A G E A S S O C IA T IO N
T H E IO W A IN V E S T M E N T BA N K E R S A S S O C IA T IO N

N orthw estern B anker

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

O ctob er 1930

N EB R ASKA

Strategically
to Act
H AR IN G the strategic

advantages in location

which have made Chicago
the world’s fourth largest
city, Central Trust Company
of Illinois adds those of its
own position at the center
of Chicago’s financial district
—2 0 8 South La Salle Street.
As the Chicago office for
your Bank, Central Trust
Company o f Illinois

strategically placed to act
for you

at the financial

center o f the m iddle west.

'THE BANK AT THE NATION’S CROSSROADS
You and your friends are cordially invited to make th's bank your headquarters on
you r ivay to and from the American Bankers’ Association Convention at Cleveland.

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

C en tr a l T ru st
COMPANY OF ILLINOIS
208 South La Salle Street
CH ICAG O

mmmmm

CONCRETE
* ROADS

PER CAPITA
t WEALTH
EMPLOYMENT

INDUSTRY

POWER

P R O SP E R IT Y PEAKS
O n the Iow a H o r i z o n
not strange that the business
explorer is attracted to Iowa. Here,
the facts stand out visibly, in
mountainous records.
The yearly value of Iowa crops is
estimated at $727,000,000. Industrial
output exceeds that figure. The largest
power company reports an increase
in power consumption. Per capita
wealth is given at $4,274 — greater
than the national average by $1,400
per person.
The current census estimated that
Iowa labor was 99 1/10% employed.
30,000 men are now driving to com
1 IS

pletion Iowa’s 1,000 mile program of
new concrete roads.
For more than 30 years, Iowa’s
largest Bank has taken a part in this
growth and achievement. Its own
strength has come through intelligent
service to the agricultural and business
development of the State.
Correspondent banks and business
houses may feel sure o f the same
loyalty applied to their interests. The
Bank’s wide sources of information, its
influential contacts, and its facilities
for handling all matters of routine
promptly,are ready to be of service to you.

IOWA- DES MOINES NATIONAL BANK
& Trust company

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

^Affiliated with

NORTHWEST

BANCORPORATION

Resources Over $483,000,000

Full text of The Northwestern Banker : October 1930, 35th Year, Number 519

FRASER