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RO BERT M. H A N E S President, American Bankers A ssociation President, W achovia Bank and Trust Company W inston-Salem , North Carolina https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S E E N A N D S A ID A T S E A T T L E Pages 11 to 15 r ^ ^ T l ^ r -^- ^ ^ ~4 ^ é- é -4r ^ ^ :^ - Our Own " N e tw o r k / / « < T h e p o lic y o f this b a n k is to give fu ll, p erso n a l and attentive service in all c o rresp o n d en t rela tio n sh ip s. < T hat p o licy has ex isted h ere fo r the fu ll fifty-eight years o f ^ ou r h istory. It is the reason fo r the large “ n etw ork ” o f Iowa hanks w h ich use M erchants N ational Bank service. W e co rd ia lly in vite the accou n ts o f b an k ers w ho wish a cor ^ ^ ^ resp o n d en t c o n n e c tio n in Cedar R apids. «g A CEDAR R A P ID S BA N K CEDAR %> RAP 10 S À i SERVICING A LL IOWA. fir/ •Yu ~ W l it MERCHANTS fli u £*• NATIONAL BANK 1i?f O FFIC ER S J ames E . H amilton, C hairm an S. E . Coquillette, P re s id e n t H . N. B oyson, V ice P re sid e n t Roy C. F olsom, Vice P re sid e n t Mark J. Myers, V. P res. & C ashier George F . Miller, V. P res. & T ru st Officer Marvin R. S elden, Vice P re sid e n t F red W. S mith , V ice P re sid e n t J ohn T. H amilton I I , V ice P re sid e n t er ir ni < <r < ^ <- ffi'n 4 Itrnr.1 R. W. M anatt , A sst. Cashier L. W. B roulik , Asst. Cashier P eter B ailey, A sst. Cashier R. D. B rown , Asst. Cashier O. A. K earney, A sst. C ashier E. B. Zbanek, B u ild in g M anager lL t « fo a l Cedar R apids Iow a Member Federal Deposit Insurance Corporation N o rth w e ste rn B an k er, p u b lish e d m o n th ly by th e D e P u y P u b lish in g C om pany, In c ., a t SSS 7th S tre e t, D es M oines, Iow a. S u b sc rip tio n , 35c p e r copy, $3.00 p e r year. E n te re d as seco n d -class m a tte r a t th e D es M oines po st office. C opy rig h t, 1939. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 W h ere Efficiency and Friendliness are Team-mates in the handling o f all Corre spondent and Transit Items. "Iowa's Friendly Bank" Central N ational B ank AND TRUST COMPANY V ES MOINES, IOWA * MEMBER » » https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis » » » FEDERAL » DEPOSIT > & INSURANCE « < CORPORATION « « « « « 4 The sales-m inded m en who head the n a tio n 's In d u stria l C o rp o ratio n s are quick to appreciate any improvement that has a bearing on Public Relations. » » » They like the air of im portance and quality La Monte Safety Papers impart to checks. They know from experience th at th e p a p e r w ith the id en tify in g "wavy lines" is the widely accepted "standard of protection" for this type of instrument. » » » Bankers who specify "La Monte" w hen ordering checks from their Lithographer or Printer are also assured a uniformly pleasing writing and printing surface. There is a La Monte Safety Paper in every price field. First introduced in 1871—La Monte Safety Papers are today the choice of more than 75% of the nation's largest banks. GEORGE LA M O N T E & S ON Nutley . . . . New Jersey https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 PROTECTING I NV I S I B L E V A L U E S — NO. 8 PROFIT SAVED FROM RLAZE THAT DESTROYS PRODUCT ■■■I HE standard fire policy is relied upon to indemnify for the cost of replacing the destroyed finished product. But also — thanks to the insured’s foresight in carry ing Profits and Commissions coverage — he realizes the profit expected from sale of these goods. This shows how diversified and far reach ing are the forms of insurance provided by T he H ome to protect against practically everyphase of loss. Its coverages embrace not only physical damage but also invisible values —profits, earnings, rents, leasehold interests — which are often laid waste by hazard. T * ™ Profits and Commissions is a specialized, well defined form of insurance written to preserve values not ordinarily covered in the regular fire, windstorm, or aircraft dam age policy. Included as a supplementary form, it protects profits expected from the sale of finished goods that are destroyed, while stored, by the hazard specified. Banks having an interest in manufactur ing plants may ask the local H ome agent further questions about this broad coverage. He will be glad to give detailed informa tion on Profits and Commissions and other forms offered to protect invisible values. HAMF nUlVlIL insurance COMPANY NEW YORK FI RE — A U T O M O B I L E — MARI NE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and ALLI ED LINES OF INSURANCE (i Broaden your service to customers with Chase correspondent facilities THE CHASE NATIONAL BANK OF THE CITY OF NEW YORK Member Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • • noi^ hwe/ tern O CTO BER 19 3 9 NUM BER 627 FO RTY-FO URTH Y E A R Oldest Financial Journal West of the Mississippi River IN THIS ISSUE Editorials A c ro s s th e D e sk f r o m th e P u b l i s h e r ............. ............... ............................ .......................... ..... 8 C LIFFO RD DE PUY Publisher R A L P H W. M O O R H E A D Associate Publisher H EN R Y H. H A Y N E S Editor 555 Seventh Street, Des Moines, Iowa Telephone 4-8163 • • • Feature A rticles F r o n tis p ie c e — “ H o o k e d ” ................................. ......... T h e A. B. A . C o n v e n tio n in S e a tt l e .................. S een a n d H e a r d a t S e a tt l e ..... ................................. F r o m th e S p e a k e r ’s P l a tf o r m a t th e A . B. A, A . B. A. C o n v e n tio n P i c t u r e s ..... .......................... N e w s a n d V ie w s ............ ............................................. N e b r a s k a B a n k e r s C o n v e n tio n P r o g r a m ....... H ig h lig h ts o f th e F . A . A . C o n v e n tio n ........... F . A . A. C o n v e n tio n P i c t u r e s ................................ W e s te r n M u tu a l F i r e in N e w H o m e ............... B a n k in g L e g is la tio n in W a s h in g to n ................... L e g a l D e p a r t m e n t ___________________________ ....... ..................................... 10 .Ralph W. Moorhead 11 ................ ................ 12 ............................................. ................................. 11 to ......... Clifford De P u y ............................................. _____ F ra n k P. S y m s 14 15 16 17 18 ..................................... 19 ..................................... 20 .........P aul F. Lavezzo 23 ......................... ............ 26 Bonds and Investments R a p id B u s in e s s E x p a n s io n _______ ___ T h e M o n th ’s M a r k e t M a n e u v e r s ........... Io w a I n v e s tm e n t B a n k e r s .......................... Io w a F ie ld D a y P i c t u r e s ........................... N e b r a s k a In v e s tm e n t B a n k in g N e w s ..................... 29 .James H. Clarke 30 ...................................... 32 ...................................... 33 ............... 41 State Banking News NEW Y O R K O FFICE Frank P. Syms Vice President 330 West 42nd Street Telephone Bryant 9-5490 N e b r a s k a N e w s ___ _____ O m a h a C l e a r i n g s ...... L in c o ln L o c a ls .............. S o u th D a k o ta N e w s .............. 1939 G ro u p M e e tin g s M in n e s o ta N e w s ........... ......... T w in C ity N e w s .......... N o r th D a k o ta N e w s ........... M o n ta n a N e w s ........ .............. Io w a N e w s ............................... 43 45 47 51 51 53 54 57 58 59 M IN N E A P O L IS O FFIC E J. A . Sarazen Associate Editor Telephone Hyland 0575 Savings and Loan A P l a n to P ro m o te B e tt e r H o m e s .................. ................................. ............... ............. .............. 71 Io w a B u ild in g a n d L o a n L e a g u e C o n v e n tio n ......................... ..................................... ... 71 The Directors’ Room A F e w S h o r t S to rie s to M a k e Y ou L a u g h .................................. ............................................. 78 M EM BER Audit Bureau of Circulations Financial Advertisers Association https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A cross the Desk From the Publisher I t is quite likely th a t in tere st rates will increase because of the war. It will be due to an ac celerated advance of in d u stry w hich in tu rn will be borrow ing more money to ca rry on its ac tivities. W hile we all hate and abhor w ar, it is never theless a fact th a t w ar supplies will be m anu factu red in the U nited S tates and furnished to the w arrin g nations. This being so, we will have an expanding economy in this country and th a t in tu rn will m ean the em ploym ent of idle capital. The law of supply and dem and will become effective and interest rates are quite likely to increase. This point was em phasized by H arold M. S her m an before the Toronto Convention of the F in a n cial A dvertising men when he said: “ Today, this w ar situation in Europe m ay very readily b rin g about a rise in the in terest rates which are determ ined by the supply and dem and of and for investm ents. It is an unhappy fact th a t E u ro p e ’s m isery m ay prove to be A m erica’s profit. Need for w ar m aterials and supplies, w ith or w ithout a change in the n e u tra lity law, will b ring expansion of certain industries calling for funds and a highly accelerated activity in the stock, hond and loan m arkets. P u ttin g people back to w ork m ay have im m ediate effect upon the banking system as a whole. “ M eanwhile, the decreased interest ra te is a worrisom e item. M any banks, having subscribed to G overnm ent issues at I oav rates, are loaded. If p riv ate in d u stry should revive, un d er the stim u lation of existing w ar conditions, bankers would be quick to invest large am ounts elsewhere. Such a developm ent m ight eventually force higher rates for F ed eral issues, since there would be more Interest Rates May Increase Because of W ar https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a ttra c tiv e in v estm en ts possible in p riv a te e n te r prise. ’ ’ The Avar in E u ro p e m ay h av e b ro u g h t to an end th e long 'd o w n w ard cu rv e of I oav in te re s t ra te s Avhicli h av e been in effect fo r th e last seAreral y ears. Can W e Prevent No intelligent b anker Political Control a r ^ ues a ^ ainst the proper of Bankinq? r e g u l a t i o n o f banking. B ut the political control of banking by politicians is neither desirable nor necessary in the U nited States. W hether the increased pressure of dictato rial desires and dem ands by the powers at W ashington because of the AAra r abroad aauII cause fu rth e r political control of banking rem ains to be seen. In o u r opinion, the p o litic a l c o n tro l of b a n k in g can be p re v e n te d fro m m a k in g an y f u r th e r strid e s if a stro n g a n d activ e op p o sitio n to such ideas is developed by m em bers of th e b a n k in g f r a te r n ity them selves. Stephen II. Fifield, assistant vice president of the B arn e tt N ational B ank of Jacksonville, F lo r ida, and new ly elected president of the F inancial A dvertisers Association, expressed his opinion re cently on this subject, Avhen he said: “ P o litic a l co n tro l n ev er did, is n o t noAv doing an d neA^er w ill m ake fo r sound b a n k in g , th e k in d of b a n k in g th a t Avill develop so u n d a n d la stin g com m u n ity p ro sp e rity . Y ou w ill notice I said ‘c o n tro l’, n o t re g u la tio n . B a n k e rs to m y knoAvledge have n e v e r o b jected to p ro p e r G overnm ent re g u la tio n , a n d have o b jected only to p o litical c o n tro l because it je o p a rd iz e s those rig h ts an d p riv ileg es w hich belong to a fre e people. T his job of public re la tio n s is a big job, b u t is o u r job — n o t th e p o litic ia n s .” W e thoroughly agree w ith Mr. Fifield Avhen he 9 said th a t this job is a job of public relation and a job fo r the banks to do and not for thé politi cians, if we are to prevent political control of b an king in the U nited S tates— and it m ust be prevented. On a “ cash and c a r r y ” basis, the question asked ju st how much money would B ritain, F rance, and C anada have for the purchase of Am erican goods. B elligerents who have defaulted on U nited S tates loans cannot borrow in the U nited States in o rd in ary ways. B ut if allow ed to purchase our goods and pay for them when they get them and tak e them aw ay in th eir own ships or on a “ cash and c a r r y ” basis, there is approxim ately $9,000,000,000 available in the case it is a long w ar, according to the best estim ates made of B ritish, C anadian and F ren ch funds in this country. The foreign investm ents of these countries am ount to some $8,300,000,000 which includes $2,600,000.000 in bank deposits and short term credit, plus $4,000,000,000 in m arketable securities and $1,700,000,000 in direct investm ents. Tn addition to this, these governm ents could tak e over the holdings of th e ir nationals, thus m aking a to tal of $9,000,000,000 available in case of a long struggle. Such purchases would, of course m ake a great increase in the dem and fo r A m erican goods. Nine Billion Could Be Spent on U. S. Goods American and A m ericans have invested Canadian Dollars in Canada 000,000,000. C anadians have invested in the U nited S tates $1,000,000,000. Upon the average, A m ericans are receiving 6 per cent on the m oney they have invested in C anada while the C anadians are receiving only 3 per cent on the m oney they have invested in the U nited States. This w ould look like C anadian investm ents on the whole have been v ery satisfactory, and as a m a tte r of fact they have been. This very in terestin g analysis of C anadian and Am erican investm ents was pointed out by F’ioyd S. Chalmers, editor of the Financial Post of Toronto when he spoke before the F inancial A d v ertisers A ssociation a t the Royal Y ork Hotel. In his rem arks he said, “ A generous p a rt of the new w ealth created in the U nited S tates during the last w ar and a fte r was invested in Canada. “ Before the w ar Am erican investors had be tw een $500 and $750 millions invested in Canada. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Today U nited States dollars to the num ber of 4 billions are invested here. Onr biggest m o rt gagee is no longer John Bull b u t Uncle Sam. “ U nited States interests control 2,000 separate companies in Canada. These include 1,000 in d u strial com panies; over 100 mines, over 100 u tility companies and an infinite variety of finan cial, m erchandising and other enterprises. “ The U nited S tates can have but few com plaints as to the results its investors have achieved w ith the m oney th a t has so freely poured into this country. The U nited S tates has lost hundreds of millions in its foreign investm ents. B ut not much has ever been lost here. “ A t the end of 1935 the U nited States had some $6,000,000,000 invested in foreign dollar loans. And here is how these investm ents sto o d : “ Of the money invested in G erm any 99.6 per cent was in default. “ Of the m oney invested in other L atinA inerican countries 76 per cent was in defa nit,. “ Of the m oney invested in China 100 per cent was in default. “ A nd w h at about C anada? Of the money invested in C anada and N ew foundland, 4.3 per cent was in default. “ Not only has A m erican C apital been well protected here, it has also earned a very h an d some re tu rn . “ Canada pays the U nited S tates each year in in terest and dividends $200 millions more th an we earn on our own investm ents in the U nited States. “ The average A m erican has invested in C anada $30. On it he receives $1.75 in cash each y ear or n early 6 per cent. “ W e have about $1,000,000,000 invested in the U nited States. The average investm ent of each C anadian across the border is $100, in w hich he receives $2.75 a year or un d er 3 per cent. “ The average A m erican dollar invested in C anada earns a re tu rn tw ice as great as the average C anadian dollar earns in the U nited States. ’’ I t is quite likely th a t w ith im proved business conditions the re tu rn on A m erican investm ents will very g reatly improve. The im p o rtan t th in g is th a t C anada and the U nited S tates are two friendly nations who in tu rn are investing friendly dollars in each others country all of which has its good will as well as its financial value. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R e a d in g fro m le f t to r ig h t— R ichard R. R ollins, v ice p re s id e n t B a n k e rs T ru s t C om pany, D es M oin es; J. A. Bandi, vice p re s i d e n t N a tio n a l B a n k o f C om m erce, N ew O rle an s; C. F. H arris, v ice p re s id e n t S ta te B a n k , O lad b ro o k , Io w a ; R. W. W aite, vice p re s id e n t W a te rlo o S a v in g s B a n k , W a te rlo o , Io w a ; Mrs. R. W W aite; Mr. and Mrs. W. J. Tesch, L in c o ln C o u n ty B a n k , M e r rill. W isco n sin ; W alter R. Bim son, p re s id e n t V a lle y N a tio n a l B a n k , P h o e n ix , A riz o n a ; a n d Charles Carey, a s s is ta n t c a sh ie r H a rris T ru s t a n d S a v in g s B a n k , C hicago. The A . B. A . Convention In Seattle OW to cushion “air p o ckets” of A m erican business d u rin g th e By Ralph W . Moorhead p re se n t second W orld W ar now un d er w ay in E urope, w h e th e r we Associate Publisher are in or out of th e w ar, n e u tra l or un-neutral, w as th e principle topic of discussion a t th e 1939 a n n u al conven Canton, Georgia, heads th e State B ank tion of th e A m erican B an k ers Associa Division; R oland E. Clark, P ortland, M aine, w as nam ed p resid en t of the tion held recen tly in Seattle. T his topic overshadow ed every oth er T ru st Division; M elvin Rouff, H ous convention th o u g h t from th e m om ent ton, Texas, w as nam ed presid en t of re tirin g P re sid e n t P hilip A. Benson, th e N ational B ank Division; and A. George Gilman, M alden, Mass., w as declared “Labor, M anagem ent and G overnm ent should act as a u n it to elected p resident of the Savings Divi sion. rebuild our econom y to m eet the P rincipal convention th o u g h ts w ere stra in s and stresses th a t w ar w ill in flict upon u s ” u n til th e last notes of these: Increased p ro sp erity for A m er Singer L aw rence T ib b e tt’s golden ica is directly ahead—in fact h ere— due to w ar influences. Caution, how voice ran g dow n th e c u rta in on the ever, m ust be exerted for, as speaker 65th A. B. A. convention. T he election of new officers b ro u g h t a fte r speaker said, after-effects of any th e elevation of R obert M. H anes, w ar are bad, n ot good. Increased presid en t of th e W achovia B ank and g o v ernm ental control of b anking can T ru st C om pany of W inston-Salem . N o rth C arolina, to th e presidency, suc ceeding Mr. Benson. P. D. H ouston, N EW O F F IC E R S C hairm an of th e A m erican N ational B ank of N ashville, T ennessee, w as P resident raised from th e position of second vice RO BERT M. H A N E S p resid en t to first vice president. H. P re s id e n t W a c h o v ia B a n k & T ru st W. K oeneke, p re sid e n t of th e S ecurity C om pany W in sto n -S alem , N o rth C a ro lin a ' B ank of Ponca City, Oklahom a, w as elected to th e im p o rta n t position of F irst V ice P resid en t second vice p resid en t and B. M urray P. D. H OU STO N Peyton, p resid en t M innesota N ational C h a irm a n of th e B o ard A m e ric a n N a tio n a l B a n k Bank, D uluth, w as nam ed tre a su re r. N a sh v ille , T ennessee A ndrew Price, p resid en t of th e N a tional B ank of Seattle, w hose nam e Second V ice P resid en t had been m entioned for th e second H. W. K O E N E K E vice presidency, w ith d rew his candi P re s id e n t S e c u rity B a n k of P o n c a C ity, O klahom a dacy and w as nam ed vice p resid en t of th e N ational B ank Division, instead. Treasurer C. C. W attam , N o rth D akota secretary, B. M U R R A Y P E Y T O N w as nam ed p resid en t of th e S tate P re s id e n t M in n e so ta N a tio n a l B a n k S ecretaries Section; W m. S. E lliott, of D u lu th , M in n e so ta H https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis only be offset by good banking, the k ind th a t really m eans com m unity services. B ut no m a tte r w h at h istory m ay record in th e ensuing few years, banks w ere nev er in a b e tte r position to serve Am erica. The Seattle convention w as com p arativ ely sm all, a little over two th o u san d in attendance, m ost of w hom m ade vacation trip s in connection, San F rancisco W orld’s fair, etc. One full day w as devoted to a boat cruise to Victoria, B. C., w hich w as grand. It looks like A tlantic City for the 1940 convention. Divisional Officers N ational banks — M elvin Rouff, H ouston, Texas, president; A ndrew P rice, Seattle, vice president. Savings —A. George Gilman, M alden, Mass., president; R oy R. Marquardt, Chicago, vice president. State banks —W illiam S. E lliott, Can ton, Georgia, president; H arry A. Bryant, Parsons, K ansas, vice p re si dent. T ru st — R oland E. Clark, P ortland. Maine, president; Carl W . G enninger, P hiladelphia, vice president. S tate S ecretaries — C. C. W attam , Fargo, president; E. S. Scarboro, Den ver, first vice president; and A rm itt H. Coate, M oorestown, N. J., second vice president. W illiam D uncan, Jr., M inneapolis, and L auder H odges, San Francisco, w ere nam ed to th e board of control. E xecutive com m ittee —R ichard G. Stockton, W inston-Salem , N. C., L ouis S. H eadley, St. Paul; P reston B. D oty, B eaum ont, Texas; A. V. Godsave, Seattle; Jam es C. Shelor, A tlanta, Ga.; H en ry A. T lieis, New York; Joseph W. W hite, St. Louis, M issouri. B a n k e rs le a v in g th e S. C a p ita l N a tio n a l B a n k , C om pany, C h icago; H. to n ic ” sp ecial t a k in g a S. P rin c e s s M a rg u e rite , a t th e V ic to ria D ock; Trank D. W illiam s, vice p re s id e n t a n d c a sh ie r F i r s t Io w a C ity, Io w a ; Spencer L. H art, second vice p re s id e n t C o n tin e n ta l Illin o is N a tio n a l B a n k & T ru s t M. Turner, a s s is ta n t s e c re ta ry C hem ical B a n k & T ru s t C om pany, N ew Y o rk ; B a n k e rs on th e “F a llla s t look a t G lacier P a r k H o te l, G la c ie r N a tio n a l P a rk , w h ere a tw o -h o u r sto p o v e r w a s m ade en ro u te to S e a ttle . Seen and Said at Seattle! Chicago bankers overw helm ed Falltonic passengers w ith th e ir fine hos pitality on th e T h u rsd ay n ig h t of th e ir d ep artu re, w ith cocktail h o u r and a ban q u et at th e P alm er House. It w as tu rk e y and everything, followed by dancing and e n te rta in m e n t from the ho tel’s E m p ire room, a fte r w hich the well fed crow d boarded th e ir special for Seattle. T he Chicago Clearing H ouse A ssociation p u t on the p arty. Mr. and Mrs. M. W. E llis, Charles City, boarded th e Special a t M inne apolis. A horsem an ex trao rd in ary , M elvin looked enviously a t every gal loping cowboy he spied as th e tra in rolled over th e g re a t w estern plains. Outside of F irs t Sec. B ank and T ru st Com pany hours, M elvin devotes con siderable tim e to the joys of riding. R. R. R ollins, vice president, th e B ankers T ru st Com pany, Des Moines, is a cam era e n th u sia st and began his quest for th e p ictorial u n u su al a t the very first o p p p o rtu n ity , th e tw o h o u r stop a t G lacier N ational P ark . Like m any o th er of th e p arty , he took p a rt in th e special bus to u r back in th e m ou n tain s w hich w as provided by th e G uaran ty T ru st C om pany of New York a t th e G lacier P a rk stop. John T. H am ilton, 2nd, debonair vice p resid en t of th e M erchants N a tion al of Cedar R apids, likew ise cap tu re d scenic beau ties in a p erm an en t m anner, th ro u g h a m otion picture cam era, how ever. M erchants N ational was also rep resen ted by P re sid e n t S. E. C oquillette an d Mrs. C oquillette w ho p lanned to tak e in th e San F ra n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cisco w orld’s fair before re tu rn in g to Iowa. State A ssociation ex-presidents w ere as plentiful as olives on a G reat N o rth ern m enu. Am ong said ex presidents, w as W . N. Johnson, vice president, N o rth w estern N ational B ank and T ru st Company, M inne apolis, w ho sh ared a com partm ent w ith H erm an C. Matzke, City N ational, D uluth. presid en t the F irs t Federal S tate Bank, Des Moines, and Mrs. M cPherrin, seldom m iss a n atio n al convention and w ere friendly m em bers of th e Seattle expedition. T hey d idn’t m iss a thing, sta rtin g w ith the d in n er and dancing in Chi cago. Grant M cPherrin, A m erican N ational B ank and T ru st C om pany of Chicago, had a strong delegation a t Seattle, w ith E. N. VanH orne, executive vice president, and Mrs. V an H orne and O. P aul Decker, vice presid en t an d Mrs. D ecker on th e F alltonic specials. P assing a large lum ber cam p in e a ste rn W ashington, w e saw th is big sign; “The only w ay to beat th e T ow n send P lan is to th in k up a b e tte r one.” W hile both F alltonic Specials out of Chicago w ere crowded, H a rry W ilkin son, v eteran editor of th e “Chicago B a n k er” and orig in ato r of th e Falland-Springtonics, said th e re w ere m ore th a n a h u n d red last m in u te cancella tions. W ar incidents and shak y bond m a rk e ts evidently k ep t m any ban k ers a t home. Col. W m. G. E dens, T erm inal N a tional Bank, Chicago, headed th e Com m ittee on T rain T ran sp o rtatio n in h is usual efficient style and officiated as MC at th e Blackfeet Ind ian cerem onial at th e G lacier P a rk stopover. H is son “B ill,” w ho w as at one tim e a national b ank exam iner in Iowa, is now w ith th e C ontinental Illinois N ational B ank and T ru st Company, Chicago, person nel departm ent. E. L. Johnson, v eteran W aterloo b an k er w ho w ould doubtless pop up in H aw aii—if th ere w as a banking con vention there-—solved th e problem of m eeting and visiting w ith all h is friends on both th e special tra in s w hich ra n about ten m inutes ap art. At one stop w hen both sections w ere a t th e sam e station, he left Section Two, boarded Section One, and hitch hiked th ereo n for a couple of h o u rs u n til one tra in caught up w ith th e other. E. E. w as deeply in terested in M innesota and N orth D akota areas w here he loaned m illions of farm m ortgage m oney du rin g his early m ortgage b anking days. F alltonic T rue Story (overhead and no nam es m entioned) “All n ig h t I dream ed th a t ra in w as com ing th rough th e roof of th e car and I squirm ed and tossed try in g to keep it from dripping dow n on me. Came th e daw n, and so help me, rig h t above in th e baggage rack w as an open bottle of Scotch, dripping dow n on m y face!” C. F . H arris, vice president, S tate B ank of Gladbrook, w as a Seattle atten-dee, and m isses v ery few state or n ational conventions. He th in k s “Bud” Allen, v ice p re s id e n t C o n tin e n ta l Illin o is N a tio n a l, C h ica g o ; W. W. Campbell, p re s id e n t N a tio n a l B a n k of E a s te rn A rk a n sa s, F o rre s t, A rk a n s a s ; John T. Hamilton II, vice p re s id e n t M e rc h a n ts N a tio n a l B a n k , C e d ar R a p id s ; Mrs. S. E. Co quillette; a n d Mr. Coquillette, vice p re s id e n t M e rc h a n ts N a tio n a l B a n k , C ed ar R a p id s ; th e V ic to ria G irls D rill T eam w h ich e n te rta in e d tw o th o u sa n d v is itin g b a n k e rs d u rin g th e ir t r ip to V ic to ria . th a t every b a n k e r owes it to his bank to go to conventions and get new ideas on b an k operation. Mr. H a rris also m akes one trip p e r y e a r to N ew York city to keep a b re a st of th e tim es. D iscussing th e recen t convictions in Louisiana, w h ere th e sta te “U” p re si d e n t an d o th er H uey Long follow ers w ere recen tly given jail sentences, F alltonic passen g er V al H. M urrell, S h rev ep o rt b a n k e r says th e situ atio n is now well in hand. “Our p re se n t governor, Mr. E a rl L ong,” he says, “is actu ally p lan n in g to p re se n t a bill to th e sta te legislatu re m aking it a crim e for public officials to steal p u b lic m oney” . . .You can ’t b eat th a t so u th e rn h u m o r—or th e so u th ern p o k e r player, either. The Fargo Forum , live-w ire F argo daily paper, pulled a good publicity stu n t, by flooding th e Special tra in s w ith th e ir F rid a y evening p ap er con ta in in g a tw o colum n special editorial ad d ressed to th e b a n k ers and extolling th e v irtu e s of N o rth Dakota. The edito rial began “How dy, L adies and G entlem en, welcom e to th e G atew ay City of th e G reat W est. You are in Fargo, N o rth D akota, or w ere, w hen you received th is p ap er.” The edi to ria l w en t ahead to give in te re stin g N o rth D akota facts and figures and also on th e fro n t page w ere pictures of M essrs. Irish, Scott and W attam , w ith th is postscript: “W e’re p u ttin g on som e of our best friends to join up w ith you, F red A. Irish, president of the F irs t N ational; Frank R. Scott, president, th e M erchants N ational and C. C. W attam , secretary of the N orth D akota B ankers Association. You’ll find ’em likeable folks—and we have lots and lots m ore ju st like th em .” Carl L. Fredrickson, president, the Live Stock N ational B ank of Sioux City, and Mrs. F redricksen, w ere on h an d to greet th e ir m any friends, h av ing driv en out by m otor. T hey took in th e scenic spots of Canada en route. A no ther Iow a b an k er w ho m otored w as B. A. G ronstal, p resident of the Council Bluffs Savings Bank, who, w ith Mrs. G ronstal, took in the Black H ills, Lake Louise and G lacier N a tional P a rk en route. Some of the Seattle e n tertain m en t com m ittee m em bers w ere rep o rted to have w orried a b it as to w h eth er v isit ing b an k ers w ould be frig h ten ed out of th e boat trip to V ancouver on account of subm arine w ar activities, p artic u larly afte r th e announcem ent by P resi d en t Roosevelt th a t subm arines had been sighted n e a r th e A m erican coasts. H ow ever, no one seem ed concerned as proved by the big crow d th a t took th e boat trip. E v id en tly all agreed w ith Mr. R oosevelt’s jovial guess th at th ey m ight have been Swiss or Boli vian subs. Clarence D iehl, vice president, the Iowa-Des M oines N ational B ank and T ru st Company, m ade a vacation trip of the Seattle convention, visiting his son P h il w ho lives at Yakima, W ash ington, near Seattle. Clarence then retu rn ed by w ay of San Francisco, Los Angeles and H ouston, visiting friends and relatives. O rville A dam s, ex-president of the A. B. A., w as m uch in evidence at the convention and A. B. A. m em bers still talk of th e v itality he instilled in A ssociation affairs du rin g his in cum bency. Mr. A dam s w ished to be rem em bered p a rticu larly to P ublisher Clifford DePuy, of th e N o rth w estern B anker w ho w as unable to atten d the Seattle m eeting. T his is th e first ABA convention in y ears th a t Clifford has missed. T he reason for his ab sence w as th e fact th a t he had ju st atten d ed th e F inancial A dvertisers A ssociation convention in T oronto and th en proceeded to New York on business. Clifford served th is y ear as a director of th e F. A. A. and this y ear headed th e press com m ittee at Toronto, in addition to leading a round table discusión at th e convention. (T u rn to page 22, please) J. H. Sharpe, p re s id e n t L a S alle (Illin o is ) N a tio n a l B a n k ; Ralph W. Place, c a sh ie r M e tals B a n k & T ru st C om pany, B u tte , M o n ta n a ; O. Howard Wolfe, c a sh ie r P h ila d e lp h ia N a tio n a l B a n k ; Mrs. Wolfe, an d tw o d a u g h te rs (on S. 8. M a rg u e rite ); Carl Fredricksen, p re s id e n t L iv e S to ck N a tio n a l B a n k , S ioux C ity ; William C. Rempfer, c a s h ie r F ir s t N a tio n a l B a n k , P a rk ston, S o u th D a k o ta. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V ic to ria D ock ta k e n fro m th e ste p s of th e H ouse of P a rlia m e n t, V ic to ria , B. C.; J. F. W anberg, p re s id e n t F i r s t N a tio n a l B a n k , E v a n s to n , Illin o is ; W illiam H. M iller, v ice p re s id e n t C ity N a tio n a l B a n k & T ru s t C om pany, C hicag o ; Fred Nabor, second v ice p re s id e n t C o n tin e n ta l Illin o is N a tio n a l, C hicag o ; A rthur W. K incade, e x e c u tiv e v ice p re s id e n t F o u rth N a tio n a l B a n k , W ic h ita ; D w ig h t Ferguson, p re s id e n t B a n k of W o o d w ard , O k la h o m a ; Norm an Shaffer, second vice p re s id e n t C o n ti n e n ta l Illin o is N a tio n a l, C hicago; Charles R. G ossett, p re s id e n t S e c u rity N a tio n a l B a n k , S ioux C ity, a n d p re s id e n t Io w a B a n k e rs A s so c ia tio n ; a n d F rank W arner, s e c re ta ry Io w a B a n k e rs A s so c ia tio n (on b o a rd S. S. M a rg u e rite ). From the Speaker’s Platform H enry W. K oeneke, president, th e Security B ank of Ponca City, Okla homa, said at Seattle: “The A m erican people are individ ualists, full of in itiative, w illing to ad venture. Is our in itiativ e killed? H ave we lost our confidence to see a th in g th ro u g h successfully? Are we lacking in courage and th e sp irit of ad v en tu re as applied to business? W e believe not b u t m u st adm it th a t for some reason we have been g reatly subdued. “T here are tw o sure signs th a t b u si ness is picking up, th a t recovery is on th e way. T hese are w hen in te re st rates begin to increase and loans to pick up. One m ay th e n know th a t business m en are regain in g confidence in them selves and in th e country. W hen th is occurs we shall be catch ing up w ith th a t co rn er w hich we have been try in g to tu rn since th e d epres sion h it.” M aintaining th e n a tio n ’s dual sys tem of in d ep en d en t state and national banks is th e “g re a te st single factor in assu rin g th e lib erty of a dem ocratic people”, R. E. Gorm ley, su p e rin te n d e n t of b an k s in Georgia, told m em bers of th e State B ank D ivision of th e A m erican B an k ers A ssociation at th e ir m eeting in Seattle. Mr. G orm ley u rg ed th e b an k ers to continue th e ir efforts in p reserv in g th e system from fu rth e r cen tralizatio n of b an k in g pow ers in g o vernm ent agencies or by m ultip le b ran ch b a n k ing. “I do n o t believe th e A m erican people, accustom ed to social and eco nom ic liberty, w ill accept a system of bank in g c o n tra ry to th e v ery plan on https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ( A t Seattle) w hich this governm ent w as founded,” Mr. G orm ley said. He voiced opposi tion to any system p erm ittin g “ab sentee control and th e m onopolization of a factor so v ital to our financial w elfare.” Labor, m anagem ent, and govern m en t w ere called upon to u n ite in building the national econom y to m eet th e strain s and stresses th a t w ar in E uro p e w ill inflict on Am erica, by P h ilip A . B e n s o n , presid en t of the A m erican B ankers A ssociation, in his address opening th e first general ses sion of th e A. B. A. He said: “It is to be hpoed th a t in tim e of developing crisis th e re m ay be an ab atem en t of th e conflict betw een th e philosophies of business and gov ernm ent; he said, “The least th a t we should accom plish is th e end of dis union w ith in our borders. AVe have h ad our full m easure of drastic changes im posed by legislation. I t is necessary to have an o p p o rtu n ity to digest them . W h at w e need now m ore th a n a n y th in g else is stability. Labor, m angem ent, and g o vernm ent should act as a u n it to rebuild our econom y to m eet th e stra in s and stresses th a t th e w a r w ill inflict on us.” “N ational banks w ere nev er collec tively so stro n g to play th e ir p a rt in th e g reat decisions w hich lie ahead,” executives of n ational ban k s w ere told by P reston D elano, C om ptroller of th e C urrency. R eferrin g to w h at he called “the resum ption of hostilities betw een the m ajor E u ro p ean Pow ers,” he rem ark ed th a t “it w ould seem th a t we are w it nessing the beginning of a funda m ental struggle betw een economic and social reg im en tatio n on one h and and the forces of an individualistic society and a free econom y on th e other. “W h atev er role m ay be reserv ed for this young republic in th e grim dram a now unfolding both to th e east and the w est, th e re w ill be heavy responsi bilities placed on all leaders of m en,” he said. “B anks are th e nerve centers in the in tricate and involved system by w hich we live, and th e re w ill be need for steady hands. A m erica is equipped for th e job. W h eth er w e consider w ealth in term s of th e necessities and conveniences of life or in term s of gold and banking assets, we have it. The o u tbreak of w ar in E urope has given stim ulus to A m erican business activity w hich, com bined w ith fu rth e r increased efforts by banks to find borrow ers, w ill produce an expansion in b ank loans to trad e and industry, H. E. Cook, p resid en t of th e Second N ational Bank, B ucyrus, Ohio, said. W hile sufficient tim e has not elapsed since th e beginning of th e w ar to fore tell accurately th e ultim ate effect upon th e n atio n ’s business, “banks w ill in all likelihood experience an increased dem and for loans and firm er m oney ra te s,” Mr. Cook said. “As conditions now exist, th ere are am ple b an k funds available for loans, and th ere is no doubt th a t banks not only are w illing b u t eager to lend,” he added. A t V ic to ria a S c o tch K iltie s B a g p ip e U n it an d a G irls D rill T eam w elcom ed v is itin g b a n k e rs fro m th e S ta te s — in th e d is ta n c e a p p e a rs th e b e a u tifu l H ouse o f P a rlia m e n t, V ic to ria , B. C.; O. P aul Decker, vice p re s id e n t A m e ric an N a tio n a l B a n k a n d T ru s t C om pany, C hicago; Leonard A. U sin a, p re s id e n t F lo rid a N a tio n a l B a n k , M ia m i; E. L. Johnson, p re s id e n t F ir s t N a tio n a l B a n k , W a v e rly , Io w a ; R. S. Leonard, F ire s to n e P a r k T ru s t a n d S a v in g s B a n k , A k ro n ; a c h a rm in g m em ber of th e V ic to ria G irls D rill T ea m ; Charles Gambrell, a s s is ta n t vice p re sid e n t, Irv in g T ru s t C om pany, N ew Y ork. The A m erican system of independ en t locally-owned b anks m u st be p re served as a safeguard ag ain st fu rth e r cen tralizatio n of g o v ern m en t pow ers and th e d estru ctio n of individual and sta te s’ rig h ts, W ood N etherland, vice p resid en t of th e M ercantile-Com m erce B ank and T ru s t Com pany, St. Louis, M issouri, told th e an n u al m eeting of the S tate B ank D ivision of th e A. B. A. Mr. N eth erlan d described th e tre n d tow ard cen tralizatio n of govern m en t a d m in istrativ e pow ers over business, labor, banking, and in d u stry as con tra ry to th e system of checks and balances am ong th e bran ch es of the g o v ern m en t established by th e Con stitu tio n . In addition, he term ed it a step tow ard elim in atin g individual in itiativ e and su b stitu tin g govern m en t control com parable to th a t of to ta lita ria n nations. “The recent tre n d of busines activ ity has been encouraging. I believe it w ill not only continue to im prove of its ow n m om entum , b u t will also re ceive a v ery decided im petus from the new conditions prev ailin g abroad since the early p a rt of th is m o n th ,” b an k ers atte n d in g th e a n n u al con vention of th e A m erican B ankers As sociation here w ere told today by H. Donald Cam pbell, p resid en t of th e Chase N ational B ank of New York. “I also have in m ind,” Mr. Campbell said, “th e broader m ark ets available to us in L atin A m erica and other p a rts of th e w orld because of the in ab ility of th e large in d u strial countries of E urope to devote as m uch atten tio n to them as in th e past. “T hus we m ay expect an increased use of our super-abundant bank de posits,” he added, “a quickening of productive activity, a rise in capital values, and finally, g reater em ploy m ent and a fuller utilization of exist ing p lan t and equipm ent. To set this sequence in m otion com plete recov ery is not required. The im provem ent we are now experiencing should be sufficient. C ontinuation of the n atio n ’s system of individual, locally-owned banks as th e best m eans of serving the credit and banking needs of the public w as predicted by Dr. H ow ard H. P reston, D ean of the School of Econom ics and B usiness of th e U niversity of W ash ington. Citing th e beliefs of some govern m ent econom ists th a t th e en tire b an k ing stru c tu re should be tak en over by F ederal asrencies in W ashington, Dr. P resto n said: “I do not see any stro n g possibility th a t th is w ill take place. B usinessm en are generally opposed to governm ent ow nership of banks. The histo ry of governm ent credit-granting show s the dangers of political influence and stands as a stro n g d e te rre n t to a com plete tra n sfe r of the control of credit from priv ate in stitu tio n s to public han d s.” The n a tio n ’s banks are the “first line of defense in com bating th e coun te rfe ite r,” Ju lian T. B aber, of the U. S. T reasu ry D ep artm en t’s Secret Service Division, told m em bers of th e Savings D ivision of th e A m erican B ankers Association. “W ith a com paratively sm all field force scattered at strategic points, the responsibility for keeping our m oney clean rests squarely upon the Secret Service. B ankers share w ith us a com m on in te re st in th is responsibility and we rely upon them in coping w ith a problem w hich has developed into an organized rack et w ith underw orld connections extending th ro u g h o u t the co untry and oven into fc reign coun tries,” Mr. B aker said. The supply of idle m oney in the n atio n ’s banks is due in p a rt to the “cheap m oney” policy of the F ederal (T u rn to page 31, please) R ay R idge, vice p re s id e n t O m aha N a tio n a l B a n k ; Mrs. R ay R idge; M rs. Oscar F. M eredith; Mr. M eredith vice p re s id e n t F i r s t N a tio n a l B a n k , C hicago; Fred E. Sm ith, p re s id e n t F i r s t S e c u rity T ru s t C om pany, S a lt L a k e C ity ; W illia m F eick , vice p re s id e n t I r v in g T ru s t C om pany, N ew Y o rk ; R. S. Leonard, F ire s to n e P a r k T ru s t & S a v in g s B a n k , A k ro n ; John T. Rohr, p re s id e n t T oledo T ru s t C om p an y ; Charles Sm ith, p re s id e n t F i r s t N a tio n a l B a n k , S a lt L a k e C ity ; Charles G. Gambrell, a s s is t a n t v ice p re s id e n t I r v in g T ru s t C om pany, N ew Y ork. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16 News and OF B A N K IN G THE V iews W O RLD By Clifford De Puy W e w ere in Toronto, Canada, w hen th e D om inion officially declared w ar on G erm any. It w as th e last day of th e Canadian N ational E xh ib ition w hich is held an n u a lly in T oronto and afte r th e final firew orks at th e night perform ance, th e 48th H igh lan ders and th e Toronto S cottish m arched by w ith th e young C anadians w ho had ju st enlisted for th e w ar. T hey did not have unifo rm s y e t and w ere in th e ir civilian clothes b u t th e ovation th ey received from th e th o u san d s in the g ran d stan d w as aw e inspiring. T here is no question in o u r m inds b u t th a t th e recen t v isit of th e K ing and Queen to Canada h ad a tre m e n dous am o u n t to do w ith th e increased determ in atio n w hich th e Canadians have to assist th e ir m o th er co u n try in w inn in g th is w ar and as Sir P h illip Gihhs, fam ous w a r co rresp o n d en t in London, said in one of his dispatches, “T his w a r business is all v ery grim b u t th e re have been o th er grim tim es in a th o u san d y ears of history. E n g land does not fa lte r.” A nd n eith er does Canada w hen h e r help is needed. ing. T heoretically, afte r a toast had been given to th e K ing or the Queen th e m eeting w as th en adjourned and sm oking could be resum ed. But, today th e to ast to th e K ing is given soon a fte r the m eal is in P rogress so th a t sm oking m ay be resum ed alm ost im m ediately. Because of the large n um ber of F ren ch C anadians in th e Dom inion all radio an nou ncem en ts are given in both E n glish and French. “Tea rev iv es you —-Come in for four o’clock tea,” is th e sign seen on m any cafes in Toronto. If you w a n t a Sunday paper w hen you are in Canada, you can’t get it. T here is a law w hich prev en ts the p ublishing of any Sunday new spaper in th e Dominion. W e presum e th is is so th a t th e citizens can have m ore tim e to go to ch u rch —or p erhaps to play golf. A ll liquor in Canada is sold th ro u g h G overnm ent stores and th ere are no In Toronto th e violators of th e speed law s arc fined one dollar per m ile for bars—no cocktail lou nges—and no set ups allow ed. Only beer is sold by the every m ile th e y go beyond is, if you are going 60 m iles w hich is 10 m iles over th e speed lim it, it w ill cost you p er m ile or $10. D uring the w eek th at w ar w as de clared, for every A m erican dollar 50. T h at and hour, allow able one dollar D uring th e F in an cial A dvertisers C onvention in Toronto, th e delegates and guests w ere e n te rta in e d a t th e R oyal Canadian Yacht Club w hich w as established in 1853, an d th is w as th e first tim e th a t an y outside group had ever been allow ed th e use of th e de lightful Club facilities. W e noticed th a t even in such an exclusive club as th is th a t som etim es th e m em bers do not pay th e ir dues p ro m p tly b u t we w ere su rp rised to notice th a t th e nam e of one m an posted as “In a rre a rs for dues” w as F. L. Shipp. A t every luncheon or banquet in Canada, a toast is first given to th e K ing before anyone is allow ed to smoke. T his custom , like m an y oth ers in Canada an d E ngland, has m any y ears of tra d itio n behind it and this one goes back to th e davs of Queen E lizabeth w ho w as opposed to sm ok https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis drink, and th at, in hotels only. you exchanged in Toronto currency, you received $1.12 or an increase of 12 p er cent. Over $175,000,000 is the incom e re ceived in Canada from th e to u rist trad e w hich is p rim arily from the U nited States. In th e H art H ou se of th e U n iv ersity of Toronto we saw th e orginal signa tu re s of th e K ing and Queen. The Queen signs here nam e “E lizab eth R.” The U n iversity of T oronto is the larg est in the B ritish Em pire. The H art H ou se of th e U niversity of T oronto is so called in m em ory of th e late H art M assey of Toronto. To the H onorable V in cen t M assey is due th e idea of th e house, th e erection of w hich w as carried out u n d er his nersooal supervision. V incent M assey ;s th e b ro th e r of R aym ond M assey w ho has tak en th e p a rt of Abraham L in coln so effectively on th e A m erican stage. In talk in g w ith one of the new s paper rep resen tativ es in T oronto w ho accom panied th e K ing and Queen on th e ir to u r th ro u g h th e Dom inion, we asked him w h at w as the one th in g that im pressed the K ing and Queen the m ost during th eir trip. H e said w ith o u t any question of a doubt it w as an event w hich took place at about 10:30 P. M. one n ig h t in a sm all n o rth e rn C anadian tow n. The tra in w as only scheduled to stop th e re for a few m in u tes to take on w ater. The tow n only had a population of 3,000, b ut th a t n ig h t th ere w ere betw een 20,000 and 25,000 people w ho had come to see th e K ing and Queen. M any had d riven 400 m iles from th e H udson B ay region. T hey had been com ing for days and nig h ts from all sections of th e co u n try su rro u n d in g th is sm all town. H e said th e K ing and Queen w ere v ery m uch im pressed by this show ing of cordiality and loyalty. * You perh ap s have forgotten th a t Sm ith w as born in Toronto, and w hile th ere m ay be a m illion M ary Sm iths, th e stage an d screen nam e of th is one is Mary Pickford. Mary The Toronto Stock E xch an ge is housed in a beautiful, new m odern up-to-date, air-conditioned building w hich w as erected a few y ears ago. Since th e w ar w as declared, no local v isitors are allow ed in th e exchange, but, an exception w as m ade and m em bers of th e F in an cial A d vertisers As sociation did have th e privilege of going th ro u g h this v ery beautiful building. Seats on th e E xchange are now sell ing for $25,000 and th e high price for such seats w as $200,000. Over tOO m in in g stocks, m ostly gold, are sold on th e Exchange. Stocks w hich sold a t 25c a sh are tw en ty y ears ago are now selling for over $40 a share. * P erh ap s some of th e v isitors to the W orld’s F air have forgotten th a t it celebrates th e 150th a n n iversary of th e in au g u ratio n of George W ash ing ton as th e first P resid en t of the U nited S tates in N ew York City. The fairg ro u n d s cover 1,216 acres and 62 foreign nations are rep resented in addition to th e U nited States build ing. The “W orld of T om orrow ” is exem plified by th e T rylon and th e Peri- * >- sphere. Since th e W orld’s F a ir in New York opened, 3 countries have been ab sorbed, o b literated or w iped off the map, ju st as you prefer, and th ey in(T u rn to page 32, please) * 17 Forty-second A n nuâl Convention of the Nebraska Bankers Association O M AH A October 23 and 24 S. HOLCOMB, p resid en t of th e N ebraska B ankers Association, ♦ announces th ro u g h th e office of S ecretary W illiam B. H ughes th a t the program for th e 1939 convention of th e association is now com plete, and offi cers and m em bers of th e organization are looking fo rw ard to an o th er good m eeting in Om aha on M onday and Tuesday, October 23rd and 24th. H ead q u a rte rs th is y e a r will be at th e Hotel F ontenelle. R egular business sessions w ill begin on M onday noon, and c a rry th ro u g h to the close of th e convention late T ues day afternoon. P re-convention activ i ties w ill include a special pro g ram for ju n io r officers and clerks on Sunday evening, October 22nd, a m eeting of th e executive com m ittee th a t sam e af ternoon, and th e d in n e r of th e Asso ciation of F o rm er P resid en ts held S un day evening. R eg istratio n w ill also begin late Sunday afternoon, and th e desk w ill be m ain tain ed th ro u g h o u t th e convention. E Registration Sunday evening, October 22nd, at about five o’clock, th e se c re ta ry ’s desk https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E. S. H O LC O M B President, N ebraska Bankers A ssociation will be opened on the m ezzanine of the H otel F ontenelle for reg istratio n of delegates, and w ill be m aintained th ro u g h o u t the convention. general convention, an organization m eeting of the new executive council. On th e rostrum . Business Sessions D inner at 6:15 Sunday evening, Oc tober 22nd, in P arlo r A, th e m ezzanine, Hotel Fontenelle. T here w ill not be any session of the general convention on M onday m orn ing. J u s t reg istratio n , visiting and com m ittee m eetings. The first business session of th e gen eral convention at 1:45 o’clock, Monday afternoon, will be held in th e ballroom of the H otel Fontenelle. The tw o sessions on T uesday will also be in th e ballroom of th e Hotel F ontenelle. Junior Conference On Sunday evening, October 22nd, at H otel F ontenelle a special program for ju n io r officers and clerks will be p re sented. Executive Council Meetings Sunday afternoon, th e 22nd, at 4:00 o’clock at H otel Fontenelle, a business m eeting of th e executive council, w ith d in n er tendered by th e association at 6:15. P arlo rs B and C. T uesday afternoon, th e 24th, im m e diately following ad jo u rn m en t of th e Association of Former Presidents Committee Meetings R esolutions 10:30 o’clock. m ezzanine. N om inating 11:30 o’clock. m ezzanine. Com m ittee—M onday at In secretary ’s office on Com m ittee—M onday at In se c re ta ry ’s office on Program M onday A fternoon, October 2Crd B allroom , H otel F o n ten elle 1:45 Call to order by P resid en t E. S. Holcomb. 1:45 Invocation by Rev. Stephen E. McGinley, Dean T rin ity C athe dral. 1:55 Welcome, by F. W. Thom as, vice president, F irs t N ational B ank of Omaha. 2:00 A nnual address of th e p resi dent, E. S. Holcomb, president, (T u rn to page 44, please) 18 H IG H L IG H T S of the Financial Advertisers Convention in Toronto By Frank P. Syms V ic e P r e s id e n t The N o r t h w e s t e r n B a n k e r S T E P H E N H. F IF IE L D N ew President, F. A. A. V ER four h u n d red m em bers, wives, and guests atten d ed th e tw en ty -fo u rth a n n u al conven tion of th e F in an cial A dv ertisers A s sociation, held in th e resp len d en t room s of C anada’s leading hotel—The Royal Y ork—in th e Queen City of Canada — T oronto — from Septem ber 10th to 14th inclusive. There, G. L. Spry, C anadian d irector of th e Canada T ru st Company, L on don, Ontario; and o th er m em bers of his executive com m ittee, despite th e rum blings of w ar and th e all too ap p are n t evidence th a t th e m eeting w as being held w ith in th e borders of a bellig eren t country, “carried o n ” in the tru e B ritish m an n er and p re sented for th e m em bers in atten d an ce a convention program th a t w ill long be rem em bered for its educational ses sions, its sp ark lin g and original en tertain m en t, and its real C anadian hospitality. Jam es A. Cowan, of th e Com pany of Public R elations, Toronto, e n te r tained th e early a rriv in g m em bers of O AT th e executive com m ittees at th e final show ing of the C anadian N ational E x hibition. It w as a stran g e coincidence th a t the Peace P ag ean t presen ted on th e huge outdoor stage du rin g th e course of th e evening, w as exactly sim ilar to th e one p resen ted ju st tw enty-five y ears ago; a t th e s ta rt of the W orld W ar in 1914. A nd w hile th is one had been planned and created New Officers P resid en t — S tephen H. Fifiehl, vice president, B arn ett N ational Bank, Jacksonville, Florida. F irs t vice presid en t — R obert J. Izant, C entral N ational Bank, Cleveland. Second vice presid en t —V ictor Gui lin, M ississippi V alley T ru st Company, St. Louis. T h ird vice p resid en t —L. E. T ow n send, B ank of A m erica N. T. & S. A., San Francisco. E xecutive vice presid en t —P reston E. Reed, Chicago. T re a su rer—Fred W. M athison, N a tional S ecurity Bank, Chicago. TH E F IN A N C IA L A D V E R T IS E R S P ic tu re d on th e opp o site p a g e a re a n u m b er o f those a tte n d in g th e re c e n t F . A. A. C o n v e n tio n in T o ro n to . R e a d in g fro m le f t to rig h t, th e y a re, 1— M iss L ucy V. D avid, s e c re ta ry to M r. R e ed ; an d P reston E. Reed, e x e c u tiv e v ice p re s id e n t o f th e F . A. A. 2— G. L. Spry, C a n ad a T ru s t C om pany, L ondon, O n ta rio ; a n d M iss M argaret Brown, c h a irm a n la d ie s’ c o m m itte e, T o ro n to c o n v en tio n . 3— F rank G. Burrows, I r v in g T ru s t C om pany, N ew Y o rk ; an d Fred W. M athison, F . A. A. s e c re ta ry a n d tre a s u re r, C hicago. 4— Stephen H. F ifield, B a r n e tt N a tio n a l B a n k , J a c k son v ille, F lo rid a ; P. M. Robins, S h e rb ro k e T ru s t C om pany, S herb ro k e , Q uebec; Guy W. Cooke, F i r s t N a tio n a l B a n k , C hicago; a n d T. J. K iphart, F if th - T h ir d U n io n T ru s t C om pany, C in cin n a ti. 5— George O. E verett, F ir s t C itiz en s B a n k a n d T ru s t Com p a n y , U tic a , N ew Y o rk ; Mrs. George O. E verett; a n d Frank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in an ho u r of peace, and had been in tended to tak e in all countries of the w orld, intense feeling had forced the w ith d raw al of all reference to Ger m any, and seriously th reaten ed the scenes devoted to Italy. Before th e w eek w as out, m em bers from th e “S tates” w ere b ro u g h t face to face w ith th e realities of th e con flict w hen a ten-cent-a-pound tax w as placed on coffee and tea, public build ings w ere guarded by ex-service m en w ith fixed bayonets, an em bargo w as placed on m oney going out of the country, and th e price of liquor was raised th irty p er cent. D uring th e course of the “early birds” p arty , L ew is F. Gordon, vice p resident of th e Citizens and Southern N ational B ank of A tlanta, Georgia; acted as tem p o rary to astm aster and gave a touching eulogy in honor of th e p ast p residents of th e F inancial A dvertisers A ssociation. T hen as a fitting clim ax and trib u te to th e ir u n tirin g efforts on behalf of financial (T u rn to page 36, please) C O N V E N T IO N H ilton, R e c o rd a k C o rp o ra tio n , N ew Y o rk . 6— J. L. Lafferty, F o rt W o rth N a tio n a l B a n k ; Richard H . W ells, S ta te P la n te rs Bank, a n d T ru s t C om pany, R ichm ond. 7— John Garver, M a n u f a c tu r e r s a n d T ra d e rs B a n k , B uffalo ; F red W hitney, L in c o ln A llia n c e B a n k a n d T ru s t C om pany, R o c h este r, N ew Y o rk ; S. P. Goodenough, of th e sam e b a n k ; a n d L ew is F. Gordon, C itizen s a n d S o u th e rn N a tio n a l B a n k , A tla n ta . 8— C. M. Short, C a n ad ian B a n k o f C om m erce, T o ro n to ; W. M. L angston, C a n a d ia n B a n k of C om m erce; a n d L. E. Townsend, B a n k o f A m erica, S an F ra n c isc o . 9— J . T. S. L yle, P a c ific F i r s t F e d e ra l S a v in g s, T a com a; John P. G illispie, F i r s t F e d e ra l S a v in g s a n d L o an , Y o u n g s to w n , O hio; R ichard H irsch, F in a n c ia l D isp la y s, C hicag o ; V e m G. Soash, M in n e so ta F e d e ra l S a v in g s a n d L o an , S t. P a u l; an d John Bodfish, F i r s t F e d e ra l S a v in g s a n d L o an , C hicago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 The Western Mutual Fire Insurance Company O ccupies New Home Thirty - second Anniversary of the Company Celebrated This Year H E W estern M utual F ire In s u r ance Com pany, a fte r 32 successful years, sta rts its th irty -th ird y e a r in a fine new b uilding b u ilt especially for th e ir use on one of Des M oines’ busiest corners. The new building at the co rn er of N inth an d G rand is oc cupied exclusively by W estern M u tu a l’s grow ing o rganization and is de signed in such a w ay as to allow for fu tu re expansion. W estern M utual F ire In su ran ce Com pany em ploys from 40 to 50 people w ho are v ery com fo rtab ly housed in th is m odern stru c tu re. T he building is of brick and glass brick co n stru ctio n w ith th e fro n t trim of black glazed b rick and alum inum bars. C onstruction h as been arran g ed so th a t a second sto ry m ay be added and an additional 44 feet of space at th e back of th e b uilding u tilized in fu tu re expansion program s. T he new building should adequately tak e care of th e grow ing needs of th is com pany for several y ears to come. W e feel su re th a t o u r re a d e rs will be in te re ste d in th e success story tak en from th e p ast h isto ry of th is progressive com pany and to review briefly som e of those th in g s p e rtin e n t to its continued success. W estern M utual F ire In su ran ce Com pany, organized in 1907, sta rte d out b y w ritin g a v e ry lim ited line of fire and w in d sto rm insurance. F o r several y ears th is policy w as u n changed, T h ro u g h th e period of th e last w o rld w ar and th e hectic y ears th a t followed, th e com pany’s financial stru c tu re rem ain ed sound an d business w as carried on in a v e ry conservative m anner. In 1926, a young m an, D. O. M illigan, w ho w as to becom e a guiding h an d in th e com pany’s fu tu re develop m ent, sta rte d his in su ran ce career in th e W estern M utual offices. Two y ears later, in 1928, th is young fellow w as elected to th e presidency of th e com pany, a t w hich tim e he w as perh ap s th e y o u n g est m an in th e U nited States to hold such a position. P roof th a t Dave M illigan w as th o ro u g h ly quali fied for th is position is re a d from th e continued success and co n stan t grow th of th e com pany since th a t year. The field of activ ity in w hich W est T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ern M utual operated w as expanded, a b roader acceptable list w as introduced, and new lines of in surance w ere added in th e y ears th a t followed. The fact th a t W estern M utual’s fu tu re has al w ays been w ell planned is evident from the p ast experience and financial D. O. M IL L IG A N President statem en ts of the com pany. In 1928, w h en th e responsibilities of m anage m en t and adm in istratio n w ere passed to Mr. M illigan, th e com pany had as sets of $129,000 and a su rp lu s of $50,000. Only tw o y ears later, in 1930, th e com p any show ed assets of $180,000 and a su rp lu s of $82,000. All of th is w as accom plished in the sh o rt space of tw o years. F o u r y ears later, in 1934, the com pany held assets of $213,000 and a su rp lu s of $96,000. These y ears saw th e w orst p a rt of th e depression, w ith m any financial in stitu tio n s fall ing by th e wayside. In th e four years th a t followed, th e com pany had a steady g ro w th each y ear and a t the close of 1938, enjoyed assets of $417,000 w ith a su rp lu s of $152,000. Since 1929, it has been extrem ely difficult to find in v estm ents th a t paid a fair re tu rn and at th e sam e tim e qualified for con serv ative investm ent. T he m anage m en t of W estern M utual has continu ally upheld v ery high stan d ard s in th eir in v estm en t portfolio. No specu lative securities have ever been held. The security of th e policyholders has alw ays been a first consideration. Forty-four p er cent of th e e n tire assets of W estern M utual a t th e close of 1938 w ere in cash, w hich is conclusive proof of the continuance of th e con servative policy th e com pany has fol lowed th ro u g h o u t its 32 y ears of suc cess. W ith business continually increas ing, a breakdow n of th e com pany’s loss and expense ratio show s th a t w ith th e trem endous increase in volum e, th e expense item s have been th o r oughly u n d er control and have stead ily decreased in p rop ortion to th e volume. In th e last fo ur years, w ith volum e steadily increasing, expenses have been decreased 12 per cent. The broadening of th e acceptable list of th e com pany w as accom panied by a very fine job of und erw ritin g . The loss ratio increased only slightly. The ad ju stm e n t expense rem ain s practically constant. A v ery liberal schedule of agents com m issions has been co n tin u ally m aintained, w ith savings to pol icyholders increasing each year. In 1933, having had a favorable ex perience in th e ir b ro ader field of oper ation w ith fire lines, th e com pany sta rte d w ritin g autom obile insurance and la te r added public liability and p ro p erty dam age. In a scant six years, the volum e of autom obile business w ritten by th e com pany has increased from n o th in g in 1933, to a figure w hich should exceed a q u a rte r of a m illion dollars in 1939. Today finds th e com pany w ritin g a full line of fire and autom obile in su r ance as w ell as plate glass, w ind storm and extended coverage. T h eir accept able list includes dw ellings, m ercan tile property, public buildings, and insurance also is w ritte n on th e hig h er type of farm p ro p erty in su rplus grain areas. Strange as it m ay seem, th e n u m er als 33 seem to have played an im por ta n t p a rt in th e launching of W estern M utual’s th irty -th ird y ear in business. J u s t to point out a few: in sta rtin g th e ir th irty -th ird y e a r in business, the (T u rn to page 31, please) 21 MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION N ational Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22 SEEN AND SAID AT SEATTLE (C ontinued from page 13) J. M. Sorenson, F re m o n t b an k er and ex-president of th e N ebraska Associa tion, is head of a F re m o n t com m ittee to w ork out plans for an irrig atio n project in th a t com m unity. N ebraska b ank ers do not like th e d ry w eath er th a t has prevailed th e re th e p ast few years, and are stu d y in g th e possibili ties of irrig atio n w h ere it m ay be p rac tical. Mr. Sorenson, ihcidentally, in additio n to a tten d in g th e Seattle m eet ing, also took in th e San F rancisco fa ir w ith his fam ily in Ju ly and a t tended th e A. B. A. sp rin g m eeting in New York. The last tim e th e A. B. A. m et in Seattle w as in 1915. The W orld W ar had been in progress ju s t a year. T his year finds us w ith an o th e r prospective w orld w ar, ju s t a few w eeks old. A nother a n n iv e rsa ry w as pointed out by H. E. Cook, p resid en t of th e N a tional B ank D ivision w ho rem inded his audience th a t th e D ivision w as organized in 1915 at th e previous Seattle m eeting. W illiam C. R em pfer, cashier the F irst N ational B ank, P ark sto n , South Dakota, and th is y e a r p resid en t of th e South D akota A ssociation, w as m uch in evidence a t th e Seattle m eeting. He chuckled a t a slig h t typographical erro r in th e first p rin te d list of dele gates at th e convention, w hich m ade th e South D akota list look un u su ally large. A dozen T ennessee delegates w ere listed by m istak e u n d e r South Dakota, b u t as Mr. R em pfer said, “I m ust adm it we have no N ashville or M em phis in South D akota.” B ank “B irth C ontrol” w as recom m ended by Dr. H ow ard P reston, of the U n iv ersity of W ashington, in his address to th e N ational B ank Division. The D octor review ed th e h isto ry of bank in g since 1931 and said too few banks is p referable to too m any b anks as in th e tw enties. In com pany w ith S ecretary H arry H ausm an, of th e Illinois B an k ers As sociation, E . L. Johnson of W aterloo and F loyd H arris of Gladbrook, th e w rite r enjoyed a m ost in terestin g m otor to u r of Seattle w ith Ward W alker, a ssista n t vice p resid en t of the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Peoples N ational B ank of W ashington. Mr. W ard w as a delightful host and know s his Seattle. He is a g raduate of W est Point, and served seven years in th e reg u lar arm y resigning w ith the ra n k of Captain. He is a strong advocate of peace and staying out of any E u ro p ean conflict at all costs. Seattle n ew spap ers and new s re p o rt ers did a fine job w ith th e Seattle m eeting. As a p relim in ary convention good w ill gesture, th e Seattle new s haw ks held a get-together p a rty and b an q u et for all visiting new spaper and m agazine rep resen tativ es on th e S un day evening preceding th e convention opening. The p a rty w as a t the W ash ington P ress Club head q u arters, w hich are splendidly equipped. The banquet w as presided over by an able new s m an, E. W . K night, presid en t of the A laska W eekly C orporation, of Seattle. S eattle n ew spap ers know how to sell th e ir tow n to visitors. U nder th e heading, “Memo to the A. B. A.,” one n ew spaper gave these facts about S eattle’s economic life: “W orld’s g re a te st pontoon bridge, cost $14,000,000. Boeing airplane factory at peak production on governm ent and p rivate orders. Five ships to be b u ilt in Seattle and Tacoma, cost $10,000,000. P uget Sound navy y ard w orking an augm ented force upon governm ent orders . . . The $200,000,000 Coulee Dam, biggest th in g in th e world, n e a r ing com pletion.” Best-dressed m en a t th e convention (m iddle w est E. N. Van H orne, exec utive vice president, A m erican N a tional B ank and T ru st Company, Chi cago; F ra n k W elch, presid en t Peoples Savings Bank, Cedar Rapids; R. R. Rollins, vice president, B ankers T ru st Com pany, Des Moines; E. A. Ebersole, cashier, State C enter Savings Bank, K eokuk, Iowa; and (you nam e the oth ers). The b reak fast given by N o rth ern T ru st of Chicago, on T uesday A. M., w as m ost enjoyable. Vice P resident C harles M. N elson, Vice P resident Fred Cuscaden and o th er officers as hosts. O riginally scheduled for 8 A. M. it w as advanced to 7:30 A. M. so all could conveniently catch the boats to Victoria. The Tuesday B oat trip to V ictoria, B ritish Columbia, w as a h ighlight of the convention. Cam eras clicked and A m erican m oney jingled into C anadian hands as b an k ers and th e ir w ives en joyed V ictoria scenery and bought C anadian knick-knacks. The day w as perfect for th e cruise, although a bit hazy and Seattle b an k ers did th em selves proud in selecting such e n te r tainm ent. H ighlight of the Seatle convention, how ever, in th e m em ories of those who attended, w ill probably be the “w om an overboard” on th e re tu rn from th e V ictoria cruise. Two boats, the P rincess M arguerite and P rincess K athleen, both C anadian Pacific R ail road steam ers, w ere used for th e trip. On th e re tu rn voyage of th e M arguer ite, about 9:30 P. M., eight m iles from Seattle, a w om an fell overboard, from th e top deck. The alarm w as sounded, searchlights w ere tu rn e d on, the steam er tu rn e d ro u n d and a life boat w as lowered. W hile th e eleven h u n dred passengers eagerly looked on, th e life boat crew located th e w om an in the w ater, hauled h er in and p e r form ed a neat rescue. All th is re quired only about fifteen m inutes and w as v ery th rilling. The w om an in question w as not registered a t the convention, and im m ediately these rum ors ra n th e rounds of th e conven tion: (1) She accidentally fell from the boat (2) She w as pushed from the boat by a com panion (m ale) (m arried) (unm arried) (3) It w as all a n eat p u b licity th rill an d she w as an expert sw im m er and diver . . . Take your choice. C onvention city n ex t y ear looks like A t least, A tlantic City lite ra tu re an d souvenirs w ere d istrib uted at Seattle. A tlantic City. The salm on fishing derby early W ed nesday m orning w as a com plete suc cess w ith about tw o h u n d red partici pating. Some th o u g h t th ere w ere m ore fisherm en th a n salm on, b u t some good catches w ere reported. H o y t R. Young, cashier, A m erican N ational Bank, A rlington, Iowa, w as one of the fisherm en w ho participated, b u t in his official com m unique said “The big gest ones got aw ay.” n this Special Session W atch for Banking Legislation In Washington A G ER to leave W ash in g to n last A ugust, Congress w as ap p aren tly pleased to be back on th e job for th e special session on Septem ber 21, th re e w eeks a fte r w ar had b ro k en out in E urope. The legislators w a n t to w atch closely w h at is going on and be in a position to have som ething to say about it. R oosevelt probably realized th is w h en he said he hoped action would be confined chiefly to revision of th e n e u tra lity law, p ushed aside in the ru sh for a d jo u rn m e n t tw o m onths ago. H e knew , too, th a t th e em bargo on arm s exports to w a rrin g n atio n s w ould not be repealed w ith o u t a th o ro u g h debate an d probably a long struggle. To lift th e em bargo w ould probably m ean expansion of our m u n itio n s in d u stry , p u ttin g it in an advantageous position should we be d raw n into th e conflict. It w ould also give m aterial aid to B ritain and F rance. In his m essage to Congress, Roose v elt declared th e lifting of th e em b ar go, coupled w ith cash and c a rry p ro visions, w ould help th is n atio n rem ain a t peace. “It has been erro n eo u sly said th a t re tu rn to th a t policy (in tern atio n al law) m ig h t b rin g us n e a re r to w a r,” the P re sid e n t declared. “I give you m y deep and u n a lte ra b le conviction, based on y ears of experience as a w o rk er in th e field of in te rn a tio n a l peace, th a t by th e rep eal of th e em bargo th e U nited States w ill m ore probably rem ain a t peace th a n if th e law rem ain s as it stan d s today. I say th is because w ith th e repeal of th e em bargo th is G overnm ent clearly and definitely w ill in sist th a t A m erican citizens and A m erican ships keep aw ay from th e im m ediate p erils of th e actual zones of conflict. “R epeal of th e em bargo and a re tu rn to in te rn a tio n a l law are th e cru x of th is issue.” E Opposition O ppositionists still hold to th e belief, m ore w idespread w hen th e em bargo law w as passed, th a t we should not supply in stru m e n ts of d estru ctio n to any n atio n a t w ar. It is claim ed th a t https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By Paul F. Lavezzo W a sh in g to n C o r r e s p o n d e n t Th e N o r t h w e s t e r n B a n k e r to supply arm s to th e allies now w ould be actual particip atio n in the w ar and m ight lead to particip atio n on th e m ili ta ry as w ell as th e economic front. B efore the session opened Senator Borah, leader of th e opposition, stated his case fran k ly in a nation-w ide broadcast. “Both as a m a tte r of m orals and as a m a tte r of in tern atio n al law, as a sovereign right, we had the undoubted rig h t to establish th is policy of declin ing the sale of arm s, m unitions and im plem ents of w ar to any nation en gaged in w ar,” B orah declared. “It is now proposed to repeal it to enable this G overnm ent to fu rn ish arm s to one side and to w ithhold them from th e other. U ndoubtedly, as I say, we have th e rig h t to repeal the law. B ut w hen we coupled th e repeal w ith th e announced and declared p ro gram of fu rn ish in g arm s and m u n i tions to one side and w ithholding them from th e other, such a program w ill u nquestionably co n stitute in terv en tio n in th e p resen t conflict in E u rope.” B arrin g a general p ro test from th e people them selves, it seem s certain th e em bargo w ill be lifted, b u t em bar go or no em bargo, a su b stan tial boom seem s to be in store for A m erican Business. Indexes are rising; inves tors, seeing an o p p o rtu n ity for profits, are going into action; foreign m arkets, p articu larly South A m erica, ab an doned by the belligerents, are ready for our salesm en. B ut will it be a long w ar? Instead of w ar scares in v esto rs m ight suffer for aw hile now from peace scares. W hile London is planning on a threeyear w ar, prospects for th e allies do not look too prom ising at th is w riting. P lans m ay change sw iftly and no one can predict w h at w ill happen a m onth or m ore ahead. Rising Prices R ising prices already prom ise a b et te r incom e for farm ers b u t a general price rise is likely to m eet w ith stiff consum er resistance if n o thing m ore drastic. S ecretary W allace, referrin g recently to “ru n s on grocery sto res” com pared G overnm ent reserves of com m odities to m o n etary reserves of th e F ed eral D eposit In su ran ce Cor poration. “H ousew ives don’t know it yet,” he said, “b u t th ey w ill soon find out th a t we have in ag ricu ltu re a m echanism w hich in a m easure does for agricul tu re w h at th e G overnm ent insurance of b an k deposits does for banks. To day, no one w ould ru sh to a b an k to get his m oney out because he know s th a t th e F ed eral G overnm ent has set up b ank reserv es to pro tect him . In (T u rn to page 39, please) Y EA R A FTER Y EA R FOR O V ER 30 YEARS /^ N V E R thirty years of steady conservative progress without a backw ard step. O v e r thirty years of continually better service have made and held for W estern Mutual an everincreasing number of loyal Banker friends and agents. O ur solid growth has always been encouraged by con servative principle and management. y-- & W e have grown, prospered and expanded through the years, to our present well-earned position as Iowa's oldest legal reserve, non-assessable, general writing mutual insurance com pany protecting policyholders from loss on their public buildings, m ercan tile property, town dwellings, farm property, plate glass, and writing full coverage on all automobile lines. W E STE R N MUTUAL FIRE INSURANCE D E S M O IN E S ,IO W A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WE START THE 33rd IN OUR NEW HOME O M t have a look at our new home. Picture I is a view of the building at Ninth and G ra n d . Num ber 2 is a shot of the main office room looking toward the front while Num ber 3 shows the reception room. 4 is an angle shot of the President's O ffice which shows a part of the Loss Departm ent. C 5 is another part of the main office with a view of some of the private offices in the background. 6 is the bookkeeping departm ent. 7 pictures the C ity O ffice and part of the main room, while 8 is the Lib rary. W e are very proud of all this and would enjoy showing it to you along with the numerous advantages of a W estern Mutual C o n tra c t. M ay we expect a call? W E ST E R N MUTUAL FIRE INSURANCE D E S M O IN E S ,IO W A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m ; i§ 4 -j Does Robbery Insurance Cover In Case of Part-time Employee? The o p erato r of a w indow cleaning com pany contracted w ith a b an k to fu rn ish ja n ito r service to its b ank building prem ises. H is w o rk m an w as in stru c te d to do any g eneral w ork reasonably related to ja n ito r w ork w hich the b ank m ight req u est of him b u t th e b an k h ad no rig h t to direct and control him. A n in su ran ce com pany in su red th e b ank ag ain st robbery and th e policy req u ired th e presence of a custodian and a t least one oth er em ploye at th e tim e of an y rob b ery for the insurance to be payable. A ro b bery occurred w hen only th e cashier and th e ja n ito r w ere in th e bank. W as th e ja n ito r an em ploye w ith in th e m eaning of th e in su ran ce policy so th a t th e in su ran ce could be collected? Yes. In a recent case before one of the F ederal Circuit Courts of Appeal in v o lv in g som ew h at sim ilar facts it w as held that the in sured could recov er on its in surance policy. The hold in g there ran to the effect th at the janitor w as an em ploye w ith in the m eaning of the insurance p olicy and that the in ten t w ith w h ich the parties used the term , em ploye, w ill govern w ithou t any n iceties of legal reasoning. D ickerson, a M innesota ban k er, was defrauded of certain p ro p e rty by a corporation in th a t state. The cor poratio n p ro m p tly conveyed th e p ro p e rty for a valuable consideration to an o th e r corporation th a t h ad an in te r locking and com m on ag reem en t w ith it. Did th e second corporation receive the p ro p e rty free and clear of any claim by th e b a n k e r on som e th eo ry to th e effect th a t it w as an innocent p u rch aser for value w ith o u t notice of any defects in its g ra n to r’s title? No. W here tw o corporations have an in terlock in g and com m on m anage m ent, and one of them procures the property of a third party by fraud, the other corporation is charged w ith n o tice of the fraud, and, if it takes the property, it is chargeable w ith the value th ereof in an action by the third party. A N ebraska b a n k e r carried a $100 bill in his pocket. H e w as approached by tw o alleged friends, induced to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis These and Other Timely Legal Questions Are Answered problem s before them and have de cided them the sam e w ay. By the Joh nston owed a M ilwaukee, W is consin, b an k $5000. As security he pledged w ith it stock w o rth $7000. Jo h n sto n en tered into an agreem ent w ith K inkaide th a t he, Johnston, w ould pay him $2000 w ith in a certain tim e and th at, if th is w as not done, the ban k should sell th e collateral, sat isfy its indebtedness, and rem it the re m aining $2000 to K inkaide. Jo hnston did n ot pay K inkaide w ith in the tim e set and th e loan from th e bank fell due and w as not paid. Jo h n sto n died. T he b an k sold th e collateral for $7000, satisfied th e $5000 indebtedness to it, and rem itted th e rem ain in g $2000 to K inkaide. W as th is proper? LEGAL DEPARTMENT play a gam e of billiards, and th e next th in g he knew the bill w as gone. The bill w as la te r found in an autom obile occupied by th e two. One of them ad m itted he w as w ith the o ther b ut claim ed he had no th in g to do w ith the m a tte r of tak in g th e money. He was, n evertheless, charged w ith being an accessory to th e crim e of larceny. W ho should decide his guilt? The o ther alleged frien d adm itted th a t he w as th e one th a t actually took th e money. W here a person, b y h is ow n te sti m ony, con n ects h im self w ith another w ho actu ally com m itted a larceny, the question of w h eth er he w as present as an h o n est dupe, or as a crim inal accessory, is one for a jury under all the circum stances. M axw ell purchased an autom obile from C hrysler, a banker, executing a conditional sale contract, w hich w as recorded, for a balance of th e purchase price th a t w as to be paid in in stall m ents. The con tract contained an after-acquired p ro p erty clause provid ing th a t C hrysler’s lien should cover an y eq u ipm ent or replacem ents th e re a fte r placed on th e car. L a te r M ax well pu rchased tires from a tire dealer, giving him a ch attel m ortgage on th e tire s to secure the purchase price. T his was also recorded. M axwell defaulted. C hrysler repossessed th e car and the tire dealer sought to repossess the tires. Could he do so? Yes. C hrysler’s rights to the tires w ere secondary to th ose of the tire dealer because the tires w ere m ort gaged to the tire dealer at the tim e they w ere placed on the car and C hrys ler’s lien w as therefore su bsequ en t to or after the tire dealer’s lien. T his question and a n sw er is based p rin ci p ally on a recent N orth Carolina Su prem e Court decision. The F ederal and Indiana courts h ave had sim ilar Yes. In m ost jurisd iction s there w ould be no question but w hat the bank acted properly but W isconsin, along w ith M issouri and a few other jurisd iction s, holds to the v ie w that a creditor cannot m ake partial a ssig n m en ts of a claim he m ay have against a debtor w ith o u t the debtor’s consent and it w as contended in the case upon w h ich th is question and an sw er is based th at such w ould be violated by rem ittin g to K inkaide. The court held, how ever, that in rem ittin g the bank had on ly one p aym ent to m ake and that, therefore, no violation of the rule again st partial a ssig n m en ts occurred. Champ a ssign ed to a W isconsin bank his expectancy in his m o th e r’s estate to secure a $1000 loan. L ater his m o th er died. One of C ham p’s other creditors sought to garnishee th e prop e rty com ing to Cham p w hile it w as in th e hands of th e ad m in istrato r of th e estate. T he b ank in terv en ed in the g arn ish m en t proceedings and claim ed a p rio r rig h t to th e p ro perty by reason of th e assignm ent. Should its claim be allowed? Yes. A n a ssig n m en t by an h eir ap parent of his exp ectan cy in a liv in g an cestor’s estate is enforceable in W is consin and several other jurisdictions, in clu d in g Illin ois. T h ey are closely scrutinized, how ever, and w ill not be approved if the su rroun din g circum stan ces sh ow any im position on the heir. 27 Jordan e n te re d into a co n tract w ith a N o rth C arolina tow n for th e con stru c tio n of a w a te r system . He as signed to th e su re ty on his p erfo rm ance bond all p ay m en ts due and to becom e due from th e tow n to secure th e su re ty from loss on perform ance bonds given by him for th is and o th er co n stru ctio n projects. L a te r Jo rd an assigned th e sam e m onies to th e local b an k to secure a loan. B efore m aking th e loan and accepting th e assig n m en t th e b an k in q u ired of th e tow n and w as told th a t th e re w ere no previous as signm ents. The b an k gave notice to th e tow n of its assig n m en t before any notice w as given by th e surety. J o r dan becam e involved financially and both th e su re ty and the b an k m ade claim to th e m oneys com ing from th e tow n. W ho should have th e first claim? The bank is en titled to the first claim . The assign m en t to th e su rety w as not com pleted before the a ssign m ent to the bank because the su rety had not notified th e tow n of its in ter est. A sim ilar holding m ight be e x pected in T en n essee but in Indiana and K entucky the su rety w ould prob ably be giv en first claim sim p ly b e cause its a ssign m en t w as obtained be fore the bank obtained its assignm en t. 1HE AV ERAG E DEPOSITOR does not object to paying for the service he gets, provided he gets the quality of service for which he is asked to pay. Thus service charges and com pensating balances are definitely concerned with prompt and efficient collection of checks and other items. The treasurer of an Iow a county failed to account to th e county for ce rta in m oney received by him as tre a su re r. T he board of supervisors, com posed of th e co u n ty ’s leading b a n k er an d o th e r leading citizens, ordered his salary w ithheld. T he tre a s u re r w as insolvent and w as n o t th e head of a fam ily. Could he requ ire, by m andam us, th a t his salary be released? An account with this Bank is assurance that you are making available to your customers the best that modern banking facili ties afford. No. W here a cou n ty treasurer is in so lv en t and not th e head of a fam ily, a cou n ty can set off a claim by him for salary again st an in debted ness by him to the cou n ty th at arises by reason of h is failu re to account for certain m oney w hich cam e in to h is hands as cou n ty treasurer. ... T H E ... A South D akota b a n k e r sought to adopt his g ran d so n by fo rm er legal proceedings. T he child’s m other, w ho w as th e b a n k e r’s d au g h ter, w as dead. I t w as th e b a n k e r’s co ntention th a t th e child h ad been abandoned by his fath er. A t th e adoption hearin g , how ever, th e fa th e r appeared, objected to th e proposed adoption, and proved th a t he had not abandoned th e child and th a t he h a d am ply provided for him . In such circum stances should an adoption o rd er in fav o r of th e b a n k er be entered? P H IL A D E L P H IA NATIONAL BANK ORGANIZED 1803 PHILADELPHIA, PA. Capital, Surplus and Undivided Profits $41,000,000 M em ber of Federal D eposit Insurance C orporation No. In an adoption proceeding the burden of proof is upon the petitioner, w h o in th is case w as th e banker, to Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28 estab lish facts ju stify in g adoption. Courts stron gly favor the reten tion by a p arent of his natural right to the con trol and cu stody of h is children. Since the fath er objected to the adop tion in th is case, it w as up to the grandfather to prove an abandonm ent, w hich he w as unable to do. B y rea son of this, th e grandfather failed in th e adoption proceedings. Portable Adding Machine B usiness, large and sm all, long d e sirin g th e convenience of a standard, fully portable adding m achine com b ining stu rd in ess and low price, is now h aving th a t desire gratified w ith the in tro d uction of th e new V ictor 600 m an u factu red by th e V ictor A dding M achine Com pany of Chicago. The N orth D akota W o rk m en ’s Com pensation Act provides th a t com pen sable in ju rie s shall include an y dis ease approxim ately caused by any p erso n ’s em ploym ent. B lackw ell con tracte d pneum onia and died as a re su lt of exposure su stain ed w hile he w as at w ork for a large co n tractin g firm. Should w o rk m en ’s com pensation benefits be paid to his dependents? A b an k e r in th a t state w as in te re ste d by reason of certain fam ily relationships. T he new V ic to r 600 Yes. The law in volved provides that com pensable in ju ries sh all include d is ease caused hy the d ecedent’s em p loy m ent. B y reason of th is, pneum onia contracted by th e d ecedent due to e x posure to w hich he w as subjected as a resu lt of h is em p loym en t is an in jury com pensable under the krw and h is dependents are en titled to com pen sation benefits upon h is death from that cause. The V ictor 600 is a new type P o rt able S tandard adding m achine w hich b rin g s to th e u ser a new convenience in adding m achine service. It w eighs less th a n nine pounds and, unlike th e large adding m achines in general use, it can easily be carried to th e w ork in stead of having th e w ork b ro u g h t to th e m achine. Its com pact size re quires no m ore desk space th a n a tele phone. Its stream lin ed ex terio r is also new in office equipm ent. T he construction of th is new adding m achine rep resen ts a basically new engineering accom plishm ent in de sign and operation. A ctual num bers of p a rts are only about half those necessary in o th er m achines, and th e trav el distances of m oving p a rts have been reduced by 50 p er cent; m inim iz ing w ear, and in su rin g longer life and hig h er operating efficiency. Back of th e V ictor 600 is a m an ufacturing experience of 21 y ears—specializing in adding m achine construction. Possibly th e m ost in terestin g featu re of th e V ictor 600 is its new low price, w hich gives th e u ser a com plete stan d ard adding m achine—in a size w hich adds six colum ns of figures. T he m a chine is also m ade in a seven colum n size and a nine colum n size. It is in terestin g to note th a t m anu factu rers of office m achinery are fol low ing th e general tre n d of o th er m a ch in ery in th e in troduction of sm aller size, low er priced models. The auto mobile, th e farm tracto r, the tru ck and o th er m achines are being pro duced in sm aller size units. P o rt ability and convenience for individual service seem s to be the new tre n d in office equipm ent as well. The V ictor 600 portable adding m achine is open ing a new m ark et in th is field. ---- “and F ish er Co. W ill H a n d le the E n t ire J o h " From the word "go" The Fisher Company assumes all responsibility, relieves your directorate of the heavy burden of building construction detail and consequently makes it possible for your institution to continue its daily business without unnecessary interruption. The Fisher Company organization, with over 70 years actual experience in Bank Fixture construc tion work, knows to the 'nth degree what it will cost and how long it will require to make the installation. Our services have pleased hundreds of Banks here in the Northwest—and we believe service rendered satisfactorily to all concerned is the last word in recommendations. Our experi enced organization, facilities, and long list of Bank fixture installations are at your command. May we not consult with you concerning your new Banking Home? Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ChartesCiti), Ta O utlook for N ext Few Months Points to Rapid Business Expansion S SHOWN by th e ch art, business activ ity expanded in A ugust "for th e th ird consecutive m onth. T he p re lim in a ry A ugust index is 92.6, as com pared w ith 91.2 (revised) for Ju ly . T he A ugust index w as still slig h tly below last N ovem ber’s peak of 93.9; b u t it is estim ated th a t by th e end of A ugust all of th e g round lost in th e recession th a t began in D ecem ber h ad been regained. T his w as th e condition of business on th e eve of th e o u tb reak of th e sec ond w orld w ar an d accounts in p a rt of th e u n expectedly p ro m p t an d vigorous expansion in business th a t h as oc cu rre d since th e first of S eptem ber, in sh a rp c o n tra st w ith th e b u siness de pression th a t set in im m ediately fol low ing th e o u tb reak of th e first w orld w ar. I t is im possible to m easure sta tistically th e e x te n t of th e Septem ber expansion, b u t it seem s to be lim ited only by th e ab ility of m a n u fa c tu rers pro d u cers to in crease th e ir output. It w ould be su rp risin g if o u r business in dex for S eptem ber did n o t show an ad vance of a t least five points. T he ru s h of b u siness began w ith u r g e n t dem and for ra w m aterials w hich consum ers believed w ould be req u ired for w a r purposes. T he im m ediate re su lt of th e o u tb reak of w a r w as con seq u en tly an u n p reced en ted rise in ra w m a te ria l prices, p a rtic u la rly those over w hich prod u cers exercise little o r no control, such as hides, rub b er, cotton cloth and wool. T h ere w ere fairly sh a rp increases in n o n ferro u s m etal prices, b u t in m ost cases p ro ducers rep eated ly w ith d re w from th e m a rk e t in a n effort to p re v e n t too rap id p rice increases. P ro d u cers feared political repercussions. F a rm p ro d u cts advanced sw iftly w ith o u t an y fear of political repercussions. M an u factu rers of p ro d u cts of v ir tu a lly ev ery d escription w ere sw am ped w ith orders. I t appeared to m ake no difference w h e th e r or n o t producers told th e ir custom ers prices w ere going up or w h e th e r th e y gave custom ers a considerable p eriod in w hich to order a t u n ch an g ed prices. M an u factu rers of c e rta in p rep a re d foods pro d u cts gave th e ir custom ers a w eek ’s notice of an advance in p rices an d received enough orders to keep th e ir factories A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Prepared for THE NORTHWESTERN BANKER b y an o r g a n iz a t io n o f leading economists ru n n in g for m onths. T he steel m anu factu rers, on th e o th er hand, “re affirm ed” th ird q u a rte r prices for fo u rth q u a rte r delivery and received enough orders to keep th e m ills ru n n in g for m onths. T he im m ediate effect is to b rin g about a sudden and pow erful stim ulus to business activ ity generally. I t is n o t m erely a case of a few in d u stries being favorably affected by w ar orders an d th e prospect of receiving still m ore now th a t th e w a r is on. T he general price com m odity price situ atio n is such th a t efforts to an ticip ate w h a t are re g arded as inevitable price increases have com pletely changed th e general b u siness outlook from one w hich w as m oderately favorable to one of v irtu a l c e rta in ty th a t th e business activity in d ex w ill go m uch higher. I t is im possible to have a definitely favorable outlook for a few m an u factu rin g in d u stries w ith o u t th e optim ism th u s g en erated spreading to practically all b ranches of in d u stry an d trade, th e only exceptions in th e p re se n t instance being a few in d u stries such as m otion p ictu res w hich have been h u rt by loss of foreign m arkets. How w idespread th e p re se n t im provem ent is likely to becom e is illu strated by th e situation in ag riculture, w hich u n til th e end of A ugust w as lim ping along w ith the help of huge F ed eral subsidies. The rise in g rain an d o th er farm prices in th e first half of Septem ber, despite th e fact th a t som e of th e crops w ere al read y harvested, has added trem en dously to th e farm ers’ cash farm in comes and has reduced th e ir depend ence on th e governm ent. T he o ut b reak of w ar has also intensified th e efforts of th is co u n try tow ard m ilitary preparedness, an d th e re su lt has been to speed up go v ern m en t orders for ships, th u s piling up th e orders for steel and o th er m aterials. T he only question th a t rem ain s is how long th e boom w ill last. T h at depends in tu rn on how long th e w ar w ill last. W all S treet appears to have been none too h appy over th e com pleteness of G erm an m ilitary success in Poland, followed by R ussian m ili ta ry activ ity and R ussia’s tru ce w ith Japan. N obody w an ts a long w ar; b u t a sh o rt w ar w ith E ng lan d and F ran ce defeated w ould n ot only be disastrous from a m ilitary and political stan d p o in t b u t w ould deprive th e in d u strial boom in th e U nited S tates of m ost of its p re se n t foundation. A nd th e out look for E n gland and F ran ce is none (T u rn to page 31, please) 30 The Month’s Market Maneuvers Prepared for THE NORTHWESTERN BANKER by JAMES H . CLARKE, Assistant V ic e President, American National Bank & Trust Company, Chicago S AUGUST ended, th e w ar sta rte d and w orld m ark ets cracked w ide open. T hus we en tered th e L abor Day w eekend w ith b oth bond and stock prices in rap id re tre a t. B ut stocks w ere soon to rev erse th a t tre n d — m ore of th a t later. The follow ing w eek’s m ark ets w ere w ilder th a n an y w e have w itnessed ja m e s h . clar ke since 1929— th e stock m a rk e t got back on th e fro n t page—th e b ro k e rs’ board room s w ere packed—“w ar babies” soared and took m ost of th e stocks w ith th em —but high grade bonds sold off sharply. A The enthusiasm engendered in the stock m arket spread to b u sin ess in gen eral and large orders for m aterials w ere the result. H and to m outh b uying w as q uickly abandoned—orders w ere placed even at risin g prices—and steel production, w hich w as 63 per cent of capacity for the last w eek in A ugust, is 84 per cent as w e w rite th is article on the tw entyninth of Septem ber. A ll of the other u sual b u sin ess indicators have also im proved—carloadings are now w ith in gu n sh ot of the best 1937 figures, probably w ill exceed them soon—electric p ow er production has reached a n ew h igh —it has been estim ated that the F ederal R eserve Board In dex w ill reach 115 before the year is over—it w as 102 for A ugust. A ll of th is recession took place despite support b u yin g from the F ed. T his b u yin g w a s done, of course, to cu sh ion the decline and not in an at tem pt to actu ally stop it—the result: the F ederal R eserve B an ks b ought about four hundred m illion bonds in the first tw o w ee k s of the m onth, then tapered off th eir activ ities sharply. A nd now w e h ave tw o schools of th ou gh t—the first w hich backs the action of the F ed—the second w h ich feels Gov ernm ents should have been g iv en a free m arket to seek th eir ow n lev el. N eith er school can be sure w hich is correct—n ev er w ill k n o w —but in the past few days sm all b u yin g has appeared—the m arkets have m oved up slig h tly , and the lon g 2% s are quoted around 101 as w e w rite this. Som e short p ositions have probably b een covered th is w eek —but there is also the rem ote p ossib ility, a t least, of som e se t tlem en t abroad as G erm any and R ussia d iscu ss it. Practically every bank in the country is a holder of substantial am ounts of G overnm ents. I n tim es of such u n certa in ty a policy of shortening m aturities is doubtless in order, even giving recognition to peace possibilities. A n d a sudden peace com ing on top of record excess reserves could send this Gov ern m en t m a rket up in a hurry. B u t banks have to play it safe— th ey have practically no choice at this tim e except to believe the w ar w ill be long and m ake plans accordingly. A ll of this has happened w ith o u t m a n y actual orders fro m abroad. I n oth er w ords there has been a sharp change in the ow nership of goods in this cou n try as in ven to ries have been built up— but orders m u st now develop to ju s tify this activity. I f the w ar is a long one, these orders w ill develop— if a truce is declared th e y w ill n o t— and the latter is an e v en tu a lity th a t cannot be overlooked w ith Poland already p a rtitioned and a stalem ate on the W e ste rn F ront. The action to be ta ken by Congress on the repeal of the arm s embargo is another factor in the business picture, and there are others w hich w ill be g iven ynore consideration now th at the first w ild en th u sia sm has died clown. H igh grade corporates shared th e w ild fluctua tions w hich followed L abor Day. Com m onw ealth Edison 3%s w hich had previously sold as high as 111 dropped to aro u n d p ar—have since recovered th ree or four points; Pacific G & E 4s, afte r an earlier high of about 113, broke to around 101 to 102—and have since regained some of th e loss. These are a couple of typical exam ples in th e high grade corporate field—b u t are rep resen tativ e. On th e o ther h and th e m edium grade bonds—p a r ticu larly the rails—followed th e course of th e stock m arket. Nickel P late 4%s clim bed about 18 points in Septem ber, w hile S outhern Pacific 3%s w ere up eight or nine points from A ugust prices—again these are typical exam ples. To get a real p ictu re of w h at lvw p°ned to the high grade bond m a rk e t—le t’s lc^k at. a f~w tric e s of G overnm ents and corporates. On A ugust fvU pnth th e long T re a su ry 2%s of 65/60 w ere selling a t about 107.15 w ith a yield of 2.37 to m a tu rity — (the high for 1939 w as 108.12). On th e day a fte r L abor Day the bid w as 101.30, a drop of 5.17 points—b u t th a t w as n o t th e w orst. By S eptem ber tw enty-fifth this issue h ad gone dow n a couple of points m ore to 99:12 —and on th e sam e day six T re a su ry bonds, th re e note issues and a n u m b er of g u aran teed is sues w ere all below par. W h en w e w rote last m onth ’s article on A ugust tw enty-fifth, the D ow -Jones A verage for industrial stock s w as 131.33—today at the close it w as 150.19 —in short, an im provem en t of 18.86 points. S trangely enough, the bulk of the advance took place in one day— Septem ber six th —w h en a gain of over 10 points w as recorded. A lm ost six m illion sh ares w ere traded that day and for sev era l days th ereafter— averages reached th eir high in the trading of Sep tem ber tw elfth , w h en 155.92 w as reached— sin ce that https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (T u rn to n ex t page, please) 31 M ARKET M AN EU VERS N EW H O M E (C ontinued from page 30) (C ontinued from page 20) W estern M utual F ire In su ran ce Com p an y began w ith a new building, a new sales m anual and several new coverages. A ccum ulative increase w hich aggregates 33 p er cent and the average age of th e m en w o rk in g for th e com pany, 33 years, m akes these facts sound like “Believe I t or N ot.” T he W estern M utual F ire Insu ran ce Com pany m ain tain s a peculiar position in Iow a insu ran ce circles due to the fact th a t it is Iow a’s oldest legal re tim e there has been a period of slo w ly d eclin in g prices coupled w ith d eclin in g volum e. C ertainly m ore has been crow ded in to the S eptem ber m arkets than into the preceding eigh t m onths. It is too early to g et a calm v ie w of m arket trends even n ow —and that m ay be true for m onths—or at least as lon g as in tan gib les abroad shape our m arkets. If th is Avar lasts lon g en ou gh —and w e keep out of it—bankers m ay \ rery A\rell find th at th ey are back in the b ank ing b u sin ess again—m aking loans. serve, nonassessable, general w riting, m u tu al insu ran ce com pany p ro tecting policyholders from loss: on th e ir pub lic buildings, m ercantile property, tow n dw ellings, farm p ro perty, plate glass and w ritin g full coverage on all autom obile lines. Officers of the W estern M utual F ire In su ran ce Com pany are D. O. M illigan, p resid en t and general m anager; F. D. M illigan, vice president; G. S. Blount, secretary; and J. D. K ent, treasu rer. T e rrito ry covered includes th e states of Iowa, N ebraska, and South Dakota. BUSINESS EXPA N SIO N M (C ontinued from page 29) too brig h t. M uch w ill depend also on th e outcom e of th e special session of C ongress called to am end th e N eu tra lity Act. J u s t as th e p re se n t N eu tra lity A ct did n o t w o rk out as ex pected, it is q uite possible th a t w h a t ever new legislation is passed w ill have un fo reseen consequences. H ence th e re is every reaso n for caution w ith respect to th e longer-range business outlook, alth o u g h so fa r as th e n e x t few m o n th s are concerned a m ark ed expansion is a foregone conclusion. SPEAKER'S PLATFORM (C ontinued from page 15) g o vernm ent, O. P aul D ecker, vice p resid en t of th e A m erican N ational B ank and T ru s t Com pany, Chicago, Illinois, told a ro u n d table conference on B ank In v e stm e n ts and M ortgages a t th e A. B. A. m eeting. “The ‘cheap m oney’ policy of th e F ed eral g o v ern m en t h as aided in forc ing in te re st ra te s to th e low levels reached in Ju ly th is y e a r and has produced in p a rt th e trem en d o u s su p ply of excess reserv es u n d e r w hich all b anks labor.” An appeal for th e g o v ern m en t to cease excessive spending and reg u la tion of b u siness and to correct and clarify law s re stric tin g p riv ate e n te r prise w as sounded by Dr. F re d I. K ent, a d irecto r of th e B an k ers T ru st Company, N ew York. “T he condition th a t p rev ails in th e U nited States today, u n d e r w hich n e a r ly ten m illions of persons are u n em ployed and th e F ed eral b udget is ru n n in g huge deficits from y e a r to year, m u st be corrected im m ediately or we w ill have to face a v ery real d isaster,” Dr. K ent said. *T*HE kids h av e a n easy w ay of solving all ^ problem s—w hen they can't m ake a decision a n y other w ay they resort to the ''Eeny-meeny-miney-mo'' method. But b an k executives cannot afford to choose their blanket bonds a n d other forms of protection by such a simple sys tem. They must investigate every possi bility a n d be SURE they get the maximum of safety a n d service at the minimum cost. It is that kind of careful analysis which has brought a n ever increasing num ber of b anker friends to THE HOUSE OF SCARBOROUGH For tw enty y ears we hav e been giving greater protection for less money —really satisfying custom ers from coast to coast. Scarborough &? Company I n s u r a n c e C o u n s e lo r s to B a n k s And Money He: “Do you believe in love a t first sig h t?” “She: “W ell, I th in k it saves a lot of tim e.” F irst N ation al B an k B ld g ., C h icago R. H . K U B E , Iow a R ep resen ta tiv e V alley B a n k B ld g ., D es M oin es, Iow a Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 The R ussian building is attra c tin g a g reat deal m ore in te re st th a n form erly since R ussia’s political alignm ent w ith Germ any. W e w ere in terested in reading some of th e quotations in th e R ussian Build ing, am ong w hich w ere these. “For IO W A Investment Bankers Association the U. S. S. R. Socialism is already ach ieved and w o n ,” signed Stalin. A nother quotation by S talin said, “Socialism and D em ocracy are In v in cible.” T his statem en t we w ere not JO H N J. QUAIL President Davenport Organized 1935 N O TH ER Iow a In v e stm e n t B an k ers F ield Day passed in to h isto ry last m onth, w ith som e 200 p articip an ts from all sections of th e m iddlew est and some from th e so u th joining in a good fellow ship picnic th a t w ill long be rem em bered. T h ere w as p len ty of h eat and sunshine, b u t a p p a re n tly the bond boys can tak e it, because the golfers w ho b rav ed th e fry in g fa ir w ays w ere ju s t ab o u t as num ero u s as in fo rm er years, w h en it has been cooler. Som eone rem ark ed th a t as fa r back as th e y could rem em ber, Iow a In v e stm e n t B an k ers h ad n ev er had ra in on th e ir a n n u al field day. P rob ab ly because th e y live rig h t. E v en m ore h a rd y w ere th e ten n is enth u siasts, fo r te n n is is som ew hat different from th a t good old gam e of chess, especially on a h o t day. The m ajo rity w ere co n ten t to rem ain in doors w h ere th e y trie d to keep cool, or p e rh ap s re la x in th e shade of Wak o nd a’s oak trees. A m ong those w ho sh ared in th e golfing h onors w ere Tom Crabbe of Cedar R apids, Bob M cC rary and Jim A ROY W. LERI CHE Secretary Des Moines C um m ins of Des Moines, and Jo h n V avra of Cedar Rapids, and th ey all received app ro p riate aw ards for th e ir efforts and skill. B ut speaking of prizes, w hen it came to those of the “door” variety, th e com m ittee really “w en t to tow n.” A t an n u al affairs h eretofore, th e golfers received the b ulk of th e prizes—th is y ear it w as reversed, and everyone p re se n t had a chance to w in one of m ore th a n fifty aw ards for holding a lucky num ber. P ic tu red on an o th e r page are a n u m b er of those atten d in g th e Iow a In v est m en t B ankers field day. N EW S A N D VIEW S (C ontinued from page 16) elude C ze ch o slo v a k ia and A lbania an d m ore recen tly Poland. A m am m oth N ational Cash R egister tells th e total atten d an ce each day a t th e fair and on one of th e days w e w ere th e re it reg istered 273,856, w hich w as a m uch larg er day th a n m any th e y have had. S h a w , McDermott & Sparks f c l — ■ ■ ■ 1 —1 1 iM r»r»pp< "»PAT-rn_._ Investment- Securities □ Suitable for Investment of Banks, Institutions and Trust Funds quite able to tra n sla te because we as sum ed th a t Socialism w as endeavoring to stam p out Democracy, b u t if Democ racy is invincible th a t is th e highest com plim ent th a t it can be paid. A nother quotation in th e R ussian building and signed by L enin says, “The R ussian revolu tion m ust in it’s final resu lts lead to the victor of S ocialism .” T he in d u strial exhibit w hich still a ttra c ts th e g reatest crow ds a t the fair is th e one bu ilt by G eneral M otors a t th e cost of $8,000,000 and w hile it only takes 15 m in u tes to see it, you som etim es have to w ait in line for over an hour. A bout 26,000 see th e exhibit daily. In th e am usem ent area, B ill R ose’s A quacade still draw s th e big crowds. Seats are only 99c for th e b est ones b u t th e crow d lines up an h o u r be fore th e 8:30 P. M. perform ance and th e 10:45 P. M. perform ance in order to get tickets. T he a m p h ith eater seats about 12,000 people. T he singers, actors and announcers all have th re e m icrophones in fro n t of th em and w h y th e y do n o t reduce the am plification is m ore th a n I can tell because th e y ro a r like volcanos. This is due to th e fact th a t th e big sw im m ing pool in fro n t of th e stage acts as a sounding board. Billy Rose, by th e w ay, before he m ade his m illions in th e show busi ness, w as one tim e short-hand cham p ion of N ew York City. The Queen M ary and th e Norm andie m ay be seen any day a t th e ir docks in th e H udson river. T hey w ill prob ably rem ain th e re for some tim e and in th e in terv al th ey are being re pain ted and decorated. e 307 Equitable Bldg. DES MO I N E S . Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Phone 3-6119 IOWA W . J. P ickerin g, p resid en t of the A llen W ales A dding M achine Corpora tion of New Y ork City, to g eth er w ith Mrs. P ick erin g an d h e r sister Mrs. V erda W h itn ey of Des Moines, re tu rn e d recen tly from a tw o m o n th trip to E urope. (T u rn to page 34, please) A T T H E IO W A BO N D PICNIC B e a d in g fro m le f t to r ig h t, th o se in th e ab o v e p ic tu re s a re : 1— Sherm an Fow ler, Iow a-D es M oines N a tio n a l B a n k & T ru s t C om p an y ; a n d H om er A. Cook, W h ee lo c k & C um m ins, Des M oines. 2— S e a te d a ro u n d th e ta b le a re W alter Y aeger, J . L. B u p p e rt & C om pany, S t. L o u is; V ictor Becker, C a rlto n D. Beh C om pany, D es M oines; R. R. R ollins, vice p re s id e n t B a n k e rs T ru s t C om pany, D es M oin es; M ik e Ruhl, Q uail & C om pany, D a v e n p o rt; M. D. D earth, M urdoch, D e a rth & W h ite , D es M oin es; Rae L au der, M oseley & C om pany, D es M o in es; A. R. H ughes, H u g h e s & C om pany, C hicag o ; a n d J u lia n W hite, M u rdoch, D e a rth & W h ite . 3— W alter Lang, H e rrim a n , R ip p le y , C hicago; M ayfield M ar shall, S h aw M c D e rm o tt & S p a rk s, D es M oines; Fred D. B lake, Farw -ell, C h ap m an & C om pany, C h icag o ; Jack Sparks, Shaw , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M c D e rm o tt & S p a rk s, D es M oines; M arshall Barlow, C a rle to n D. B eh C om pany, D es M o in es; H. C. P lagm an, D es M oin es; an d Ira A llen, J a c k le y & C om pany, D es M oines. 4— John P yper an d W alter P yper, P y p e r & C om pany, C ouncil B luffs; John Quail, Q uail & C om pany, D a v e n p o rt; H arry G reenway, G reen w ay & C om pany, O m ah a; John Brady, C ouncil B lu ffs; W infield Jackley, J a c k le y & C om pany, D es M oin es; a n d F ran klin Schurick, S tra u s S e c u ritie s , C hicago. 5— M iss Jan ice O’Brien, one o f th e e n te r ta in e rs . 6— E d W elch, o f M cG uire, W elch & C om pany, t a k in g a little b e fo re -d in n e r n ap . 7— A. M. M cLaughlin, V ie th , D uncan, D a v e n p o rt; E. D. W alker, W h ite , P h illip s C o rp o ra tio n , B u rlin g to n ; John Brady, C ouncil B luffs; Owen P. M cD erm ott, S haw , M c D e rm o tt & S p a rk s ; a n d Tom Bowen, J a c k le y & C om pany. 34 State and National Figures The following figures were com piled by R. N. Sims, secretary-treasurer of the N ational Association of Supervisors of State Banks, and relate to the States of Iowa, M innesota, Mon tana, Nebraska, N orth Dakota and South Dakota. I hey show aggregate resources in these states from figures supplied from heads of state banking departm ents, and are as of June 30, 1939. Figures for all N ational banks of th? country are also shown. No. of Institutions STA TES Iow a ..................................... M inneso ta ........................ M o n tan a ............................. N e b ra sk a .......................... N o rth D ak o ta .................. South D ak o ta .................... 538 491 70 290 122 124 $ C A P IT A L SU RPLU S 23,556,500.00 $ 13,383,600.00 4,252,400.00 7,784,500.00 3,380,000.00 3,831,400.00 T otal of A L L S ta te B ank s in N a tio n .........10,086 $1,514,225,854.60 C om ptro ller’s R ep o rt o f A ll N a tio n a l B a n k s . . . 5,209 $1,566,003,000.00 Undivided P R O F IT S Deo. Incl. Cer’fid and Cash. Chks. 11,263,276.00 $ 10,202,068.01 $ 9,401,550.00 4,753,774.00 1,624,972.89 1,178,931.32 2,524,771.70 1,519,021.63 932,407.19 328,640.11 1,029,671.65 782,844.49 Loans and Discounts 401,323 567 84 $ 220,151,260.45 273 624 572*00 110,902,447.00 49 088*013 18 17,120,851.16 66270*795*73 36,285,876.57 >1 757*532 02 9,526,223.53 33*854*858*31 16,007,674.04 Bonds, Stocks and Securities, etc. $ 117,251,860.00 129,692,870.00 23,608,108.16 17,788,892.11 7,297,375.10 11,332,603.73 Total Resources $ 446,682,294.84 305,207,318.00 66,289,235.66 78,555,507.49 27,082.499.31 39,795,769.60 $2,419,887,292.41 $540,039,850.01 $35,006,997,410.86 $13,047,729,907.21 $15,769,154,321.16 $40,454,162,170.76 $1,170,822,000.00 $449,352,000.00 $29,469,469,000.00 $ 8,573,703,000.00 $12,552,886,000.00 $33,180,578,000.00 N EW S A N D V IE W S (C ontinued from page 32) T hey w ere in London th e day th at E ngland declared W ar and w ere able to re tu rn to th e U nited States a few days th e re a fte r on th e S. S. M anhat tan. is engaged primarily in facilitating wholesale distribution and retail sales of the following products of General Motors Corporation and its world' wide affiliates: Ca d i l l a c , l a s a l l e , BUICK , O L D S M O B IL E , PO N TIA C , automobiles; FRIGIDAIRE appliances for refrigeration and air conditioning; d e l c o lighting, power and heating equipment; g m c trucks; CHEVROLET BEDFORD, VA UXHALL, OPEL, BLITZ — foreign made automotive vehicles. The business consists of investments in selfdiquidating credits, widely diverse Red as to region and enterprise, capital employed beingin excessof $80,000,000. GENERAL MOTORS INSTALMENT P L A N These notes In obtaining short term accommodation, issues one standard form of note. This obligation it offers to banks and in' stitutions, in convenient maturities and denominations at current discount rates. GMAC are available, in limited amounts, upon request. Mr. P ickering does not believe th at E ngland w ill m ake Peace u n til “H it lerism has been destroyed. It w ill be a long w ar and a w ar th a t w ill destroy E urope. The U nited States should repeal th e em bargo so th a t E ngland and P ran ce m ay purchase m unitions from us on a cash and carry basis,” is his view of the situation. R ichard P ickerin g, division coast sales m anager for th e A llen W ales Company, had charge of th e ir exhibit at th e A m erican B ankers Convention in Seattle. The M anufacturers Trust Company of New York, w hich is the only ban k at the W orld’s F air, is equipped exclu sively w ith A llen W ales A dding Ma chines. P aul S tew art of th e New York Sun w as our host a t th e Stork Club and seated a t tables n e a r us w ere Bobby R iggs, th e new ten n is cham pion, D eem s Taylor, th e com poser and m usic critic, Gloria V anderbilt and o ther well know persons. W e often w onder w h at m akes these clubs popular because basically they are ju s t a n o th er place to eat, d rink and dance. B ut each one seem s to have its ow n p a rtic u la r clientele and supposedly “differen t atm osphere.” Stopping one n ig h t to listen to the EXECUTIVE OFFICE N E W YORK ' BRANCHES IN PRINCIPAL CITIES soap box orators in C olum bus Circle, I bought a booklet from one of them w ho w as speaking, “against H itler ism .” Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 The P am p h let w as entitled, “B rains B ehind Barbed W ire.” It w as an a u th e n tic re p o rt of w h at had happened to th e various w riters, a rtis ts and au th o rs in G erm any w ith w hom H itle r has disagreed an d th e fate of all of th em w as th e sam e be cause th e y h ad e ith e r been killed or p u t in co n cen tratio n camps. A sign on an eatin g place ju s t off of B roadw ay says: “P ick a Rib.” Assistant Vice President S tu a rt H. Sm ith, fo rm erly a ssista n t tr u s t officer of th e T ow er Grove B ank & T ru st Com pany, of St. Louis, w as elected an a ssista n t vice p resid en t of th e F irs t N ational B ank in St. Louis on Septem ber 19th. In m ak in g th e announcem ent, F. O. W atts, ch airm an of th e board, stated Mr. Sm ith w ould tak e over th e d uties of L ona B. J e n nings, a ssista n t vice president, w ho has resigned to accept a vice p re si dency of th e F ir s t N ational B ank of S hreveport, L ouisiana. S tu a rt Sm ith is a son of W alter W. Sm ith, p re sid e n t of th e F irs t N ational B ank in St. Louis. H e is a g rad u ate of th e U n iv ersity of P en n sy lv an ia and th e W h arto n School of F inance. P rio r to his association w ith th e T ow er Grove B ank & T ru s t Com pany, he w as in th e in v estm en t division of th e G en eral A m erican Life In su ran ce Com pany of St. Louis. Mr. Jen n in g s w ill leave for S hreve p o rt on O ctober 1st, and Mr. Sm ith w ill ta k e up his new d uties on Oc tober 16th. Named Director T he Iow a S tate T raveling M en’s A s sociation announces th a t D utton S tahl h as been nam ed to th e board of di recto rs of th e A ssociation. Mr. S tahl w as fo rm erly associated w ith th e tr u s t d e p a rtm e n t of th e Iowa-Des M oines N ational B ank & T ru s t Com pany, in Des Moines. and has b ran ch offices in Iowa, Il linois, W isconsin and M innesota. The com pany w as organized in 1921 and has grow n steadily th ro u g h o u t th e y ears u n til it now ran k s as one of th e leading individual finance com panies in th e m iddlew est. Officers of th e F ed eral D iscount Cor p oration include: Jo h n H. Jansen, president; R. L. Stotesbery, vice p resi dent; George F. Jansen, secretary; W illiam F. Saw yer, treasu rer; A. G. F ischer, a ssistan t secretary; F re d B. H allberg, a ssistan t treasu rer; M. E. P atrick, credit m anager and George Allbee, special rep resentative. Bandit Protection A new b an d it and hold-up protection device, know n as th e R ohrig A rm or G uard Hold-up P ro tectio n is now be ing m an u factu red and m ark eted by the E lectric G uard Com pany of Mil w aukee, W isconsin. The R ohrig A rm or E lectric G uard consists of a series of arm or-steel sh u tters, suspended from a rocker arm , w hich is operated by an electro m agnet, controlled from p u sh b u tto n s located at various strateg ical points in th e b anking room or priv ate offices. M echanical control is also provided th ro u g h h and trip p in g levers, one such THREE SERVICE FACTORS For 22 years the W hite-Phillips C orporation has been a constructive part of the Iowa banking field. The effectiveness of our co operation with Iowa banks is based on three solid fa cto rs: I . S E R V IC E — The W hite-Phillips Corporation maintains an intimate personalized service to all clients. 2. E X P E R IE N C E — O ur officers have had many years of practical experience in the investment banking field. 3. P O L IC Y — For years we have specialized in municipal bonds which are especially suit able fo r bank investm ent. M ay we serve you, too? Federal Discount T otal assets of $4,471,918 are show n in th e Ju n e 30, 1939, sta te m e n t of con dition of th e F ed eral D iscount Corpo ra tio n of D ubuque, Iowa. T his is an all tim e high and re p re se n ts an in crease of ap p ro x im ately $1,400,000 in th e last y ear and a half. In th e assets colum n th e com pany’s figures show $596,980 cash on h an d an d due from banks; loans an d dis counts $2,868,255 and sm all loans re ceivable $709,562. BLAIR A . PHILLIPS, President ROBERT ALEXANDER, V ice President C A RL N. STUTZ, Secretary VERNE EHLERS, Treasurer W H IT E - P H IL L IP S C O R P O R A T I O N Investment Bankers C H IC A G O DAVENPORT T he F ed eral D iscount C orporation specializes in autom obile finance p ap er Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36 lever being located above or n ear each cash ier’s w icket, or, connected w ith a foot trip p in g lever, if desired. T his provides both electrical and m anual control of th e trip p in g m echanism . T he arm o r s h u tte rs are concealed be h ind o rn am en tal or bullet-proof screen, w hich encloses th e ban k in g Municipal T his is a v iew in to th e lo b b y fro m th e op p o site side o f th e w ic k e t s tru c tu re . T he a rm o r-ste e l s h u t te rs a re p u sh e d up o u t o f sig h t a n d out o f th e w ay . and General Bonds ★ F. A . A . H I G H L I G H T S S p ecia lists in N ebraska M u n icip als (C ontinued from page 18) ★ GREENWAY & CO. F arn am B ld g. OM AHA, N EBR A SK A H e re is th e sam e in te rio r v iew o n e -fo u rth o f a second a f te r th e b u tto n w as pressed. T he b a n k p e rso n n el a n d m oney is p ro te c te d b e h in d b u lle t-p ro o f steel. room to a point tw o feet above m an height. The sh u tte rs ru n in slides— like w indow sash—and are raised out of sight w hile business is being tra n s acted w ith legitim ate b ank patrons. Municipal Public Utility BONDS | A.GALLYN O Industrial Incorporated 1 0 0 W est M on roe S treet, C hicago— T el. F ra n k lin 8 4 0 0 N ew Y o rk R ep resen ta tiv es: M ilw aukee W aterloo Northivestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis As show n by th e illustrations, th ere is nothing to in terfere w ith th a t—“so de sirab le”—close personal co n tract be tw een b an k ers and patron, w hile the sh u tte rs are up, yet, w ith lightninglike speed, all of th e sh u tte rs can be dropped sim ultaneously, in case of danger. The sh u tte rs for the te lle rs’ w ickets are ingeniously safeguarded so th a t closing—even should it close upon the hands of a baby—cannot do the slight est harm . T his is accom plished by p atented buffers and sponge rubber inserts. These ru b b er in serts do not affect th e bullet-resisting qualities of the sh u tte rs in any way. The R ohrig A rm or E lectric G uard is built in stan d ard and special sec tions th a t can be adapted and fitted to any te lle rs’ counter. T h at m eans, th a t it can be installed on existing fixtures, regardless of w h eth er th e counter or fixture top is wood, m arble or metal. And, it can be supplied in an unlim ited v ariety of designs and finishes best suited to the style and finish of the banking room or existing fixtures. O m aha D es M oines B oston Cedar R apids advertising, he presented each past p resid en t w ith a sym bolic gold em blem. Those receiving them w ere Guy Cooke, of th e F irs t N ational B ank of Chicago, C harles H. W ettereau of th e A m erican N ational B ank of N ash ville, E. H. K ittredge, H ornblow er & W eeks of Boston, R obert W . Sparks, B ow ery Savings Bank. New Y ork— H. W . L yon, of Lyon & Sturges. New York; T. T. Sperling, Cleveland T rust Company, T. .T. K iphart, F ifth T hird Union T ru st Com pany, C incinnati, and W . H. N eal, of the W achovia Bank & T ru st Company, W inston-Salem , N orth Carolina. “Doc” Lyon and Bob Sparks m issed th e presen tatio n cere mony, b u t w ere on h a rd earlv Mon day m orning for th e official sessions. George O. E v e re tt, vice p resident of th e F irst Citizens B ank & T ru st Com pany of Utica, and re tirin g president of th e F in an cial A dvertisers Associa tion, presided a t th e first official ses sion on M onday m orning, Septem ber 11th. In his address he urged th a t every m em ber p resen t take definite steps to enlist th e aid of his b an k ’s officers in ev ery cam paign and pro gram th a t he initiated. F o r these officers w ere in a definite position to co n trib u te to th e success of the cam paigns and in view of th e ir constant contact w ith th e public, th e ir know l edge of w h a t th e public relatio n s de p a rtm e n t w as doing, w as essential. R alph C. Hay, m ayor of Toronto, w as delayed in his w elcom ing of the m em bers to Canada by official busi- 37 ness—O. H. M. S.—On H is M ajesty’s Service. T he b u siness being th a t of tu rn in g over th e T oronto E x h ib itio n G rounds and B uildings to th e Cana dian G overnm ent for th e b illetin g and tra in in g of new arm y recru its. Guy W. Cooke, of th e F irs t N ational B ank of Chicago, rep lied to th e M ayor’s w elcom e by recollecting th a t th e F in an cial A d v ertisers A ssociation had been conceived in T oronto ju s t tw enty-five y ears ago; w hen he and several of th e o th er foun d ers atten d ed w h a t w as his first convention a—m eet ing of th e A ssociated A dvertising Clubs of th e W orld. C. R. A m ott, of th e Sales A nalysis In stitu te of Chicago, placed selling on a p u re ly m ath em atical basis w h en he expounded th e plus and m inus values of sales a rg u m en ts before th e w ide aw ake m em bers of th e convention, w ho eagerly arose to h e a r his w ords of w isdom a t nine a. m. each m orning. A nd carry in g out th e w ar atm osphere th e y provided a rat-a-tat-tat of th e ir own, w h en th e y placed th e p rin te d pages of in fo rm atio n in th e loose leaf folders th a t h ad been so th o u g h tfu lly provided for th em by th e convention com m ittee. Jam es A. R ascovar of A lb ert-F ran k G u en th er Law, Inc., N ew York, and new ly elected d ep artm en tal head of th e in v estm en ts division, suc ceeding John J. H arris, of F e n n e r & Beane, N ew York, k e p t th e m em bers on th e ir toes and som etim es even trie d th e resources of th e “P ro fesso r” w ith his in te re stin g and tim ely ques tions. The in te rim b etw een these selling classes an d th e general sessions w as occupied w ith a stra ig h te n in g of ties, tiein g of shoe laces, quick shaves, and real C anadian b reak fasts served in th e Coffee Shop of th e Royal York. T he General S ession s w ere devoted to in te re stin g talk s on p roven m ethods of im proving public relatio n s and de veloping new b u siness for banks. L. E. T ow nsend of th e B ank of A m erica, San F rancisco, C alifornia, h a stily re c ru ite d to fill a spot on th e pro g ram th a t had unavoidably been left v acan t by a p reviously invited speaker, rep eated th e educational talk th a t he gave on “P ro g ram s th a t M er chandise B ank A d v ertisin g ” before th e Texas B an k ers E d u catio n al C onfer ence a t th e U n iv ersity of Texas. H is talk w as a real in sp iratio n , and his su b seq u en t election to th e th ird vice presidency of th e A ssociation is a fit tin g re w a rd and trib u te to his activ i ties as a m em ber of th e A ssociation since it first started . F o r he w as p re s e n t on th e platform , along w ith Guy Cooke of Chicago, w h en th e Associa tion held its first m eeting, tw entyth re e y ears ago. A new d e p a rtu re in convention p ro this way, m any w o rthw hile ideas w ere presen ted in short, snappy m ono logues, and th e relatio n sh ip of each to th e w hole idea w as dram atically illustrated. D. L. R eburn, general ch airm an of th e e n te rta in m e n t com m ittee and th e o th er m em bers of th a t com m ittee de serve u n stin te d praise for th e p ro gram th ey p u t on. F o r w hile L ew is B row n could n ot p rev en t th e g o lf to u rn a m e n t from being practically “rained-out”, th e m any novel and in terestin g featu res th a t w ere p resented sent everyone hom e in th e early h o urs well contented w ith th e tim e spent. T he m em bers enjoyed a d in n er and dance at th e R oyal C anadian Y acht cedure w as adopted th is y ear w hich has u n u su al m erit. In stead of asking v arious m em bers to talk about th em selves in an off-hand m anner, a series of skits w ere d raw n up dealing w ith th e public relatio n s d ep artm en t of a bank, its activities, an d its dealings w ith th e public an d press. The ch ar acters in th ese sk its w ere filled by people w ho had perform ed sim ilar services in th e ir ow n banks. T hen as th e sk it proceeded and becam e eith er a com edy or a dram a, depending u p on th e accom plishm ents of th e actors selected, th e audience w as told ju st how each individual had conducted him self u n d er a sim ilar set of cir cum stances, in his ow n bank. In Automobile Finance Tim e Paym ent Plans for A utom obile P urchasers • • • S h ort T erm C ollateral T ru st N otes • • • Branches in Iowa — Illinois — Wisconsin — Minnesota • F E 1 1 K K A I , • • D l g C C M J M T C o r p o r a t io n Capital and Surplus Over $1,250,000 D u B T Q U E i, I o w a Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 38 Club—th e first tim e th a t th e club has been opened to a non-m em ber group. A nother n ig h t w as sp en t a t H a rt House, w here th e D olphinettes p e r form ed in tru e W orld’s F a ir fashion; H ow land Sm ith of th e Canada T ru st Com pany exhibited a m ore th a n ru d i m en ta ry know ledge of th e gam e of badm inton, and th e g uests enjoyed pleasan t re fre sh m e n t in th e sam e room in w hich th e K ing and Queen ate th e ir lunch on th e ir royal v isit to Canada. A propos of th e golf to u rn am en t, R oy H. B ooth of th e N ational Shawm u t B ank of Boston, received m any felicitations of sym pathy, w h en he be- m oaned the fact th a t he only needed a fo u r for a 72, and took a six on the eig h teen th hole for a 76 instead— u n til th e o th er players learned th a t he w as referrin g only to his score on th e last nine holes. In th e golf to u rn am en t, J. A hern of th e M anufacturers and T raders T ru st Com pany of Buffalo took the low gross w ith a 74. H. F . K roeger of E dw in, Bird, W ilson of New York, w on second w ith a 75. A nd Don Cam eron of th e C ontinental Illinois B ank & T ru st Com pany w as again in the scoring colum n w ith th e low gross prize for th e first nine holes. Buys Des Moines Building Entirely lew Plan of Renewal Compensation An ★ ★ ★ Nowin Effect for NWNL Agents E ffe c tiv e S ep te m b er 1, 1939, N o r t h w estern N a t io n a l L ife , b y a n n o u n c in g a n ew p la n o f ren ew a l c o m p e n sa tio n , to o k a g rea t fo rw a rd strid e in t h e d ir e c tio n o f rew a rd in g it s fu ll-tim e p ro d u cin g a g e n ts in tr u e p ro p o r tio n t o t h e c o n tr ib u tio n m a d e b y th e m t o th e C o m p a n y ’s w elfare in p ro p erly se le c tin g , se llin g , an d se r v ic in g th e ir b u sin e ss. T h is n ew p la n o f ren ew al c o m p e n sa tio n is d esign ed : (1) T o e n c o u r a g e b u s in e s s t h a t s ta y s o n t h e b o o k s t o fu lfill i t s p u r p o se i n p r o t e c t io n , w it h c o n s e q u e n t s u b s t a n t ia l s a v in g s t o t h e p u b lic ; (2) T o p a y w e ll t h e a g e n t w h o s ta y s w it h t h e C o m p a n y a n d se rv es h is p o lic y h o ld e r s . In ste a d o f p a y in g a p ercen ta g e o f th e ren ew a l p rem iu m s, this new p la n p a y s a P u rc h a se o f th e b u ild in g p ic tu re d above, on th e so u th w e st co rn er of T e n th S tre e t a n d G ra n d A venue, D es M oines, w a s a n no u n ced re c e n tly b y E . 0 . F e n to n , d ire c to r of th e A m e ric a n I n s t i tu t e of B usiness. T he b u ild in g , re n am ed a fe w y e a rs ago as th e A. I. B. b u ild in g , w as e re c te d fo r use b y th e P o ly c lin ic h o sp ita l. I t is a fo u r-s to ry s tru c tu re , in w h ich th e A. I. B. school h a s b e en housed fo u r y e a rs. A fifth floor is to be a d d e d n e x t y e a r to be used as re c re a tio n space b y stu d e n ts , M r. F e n to n said . T he A. I. B. also o p e ra te s th e A m e ric a n I n s t i tu t e of Com m erce a t D a v e n p o rt, Io w a , a n d ow ns th e b u ild in g in w h ich i t is lo ca ted . T he A. I. B. e n ro llm e n t th is fa ll is e x p e c te d to be a b o u t 700 a n d th e A. I. C., 300. fla t am ount p e r thousand of business re newing over and above certain required m ínim um s, th u s a ssu rin g th e m a n w ith a h ig h p e r s iste n c y record a rate o f ren ew al c o m p e n sa tio n m a te r ia lly greater th a n th e m a n w ith a v era g e or lo w p e r s iste n c y . T h e a m o u n t o f co m m issio n p a id per th o u sa n d is th e sa m e reg a rd less o f t y p e o f p o lic y or a m o u n t o f p rem iu m , b u t is grad ed accord in g t o th e y ea r in w h ich th e b u sin ess w as p ro d u ced . U n d er th e p la n , ren ew a l c o m m issio n s are p a id throughout the y ea r in equal m onthly instalm ents an d q u ic k ly b e co m e th e d o m in a n t sou rce o f an a g e n t’s ea rn in g s, e v e n ex cee d in g th e first-year co m m issio n s from su b s ta n tia l v o lu m e s o f n ew b u sin ess. Our Collateral Trust Notes afford the very T h e n ew p la n is n o t co m p u lso ry for a n y a g e n t, b u t un d er it fo u r out o f five of TWENTY-TW O YEARS OF EX PER IEN C E BACK OF EVERY NOTE LIQUIDITY maximum of investment liquidity. Let us help you invest your surplus funds. N wN L 's fu ll-tim e active agents benefit im m ediately by substantial increases in re newal earnings. I n n o e v e n t w ill an a g en t g et less in ren ew a l co m m issio n s th a n h e is e n title d u n d er h is p resen t a g en cy c o n tr a c t, an d th ere is n o red u c tio n in th e sch ed u le o f first-y ea r co m m issio n s p a id . Northwestern National LIFE INSURANCE COMPANY O.J. ARNOLD. President S T R O N G ^ Minneapolis,Mmn. - 'L I B E R A L Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • • Iow a G uarantee, Inc* Shops Building Des Moines, Iowa 39 The official b u siness of th e Associa tion was conducted a t th e luncheon held on W ednesday, S eptem ber 12th. R eports w ere read by various com m ittee chairm en. Golf prizes w ere aw arded. Stephan H. Fifield, new ly elected presid en t of th e A ssociation, presided a t th e a n n u a l b an q u et at w hich J. E. H am m ell, E sq u ire, pioneer m in er and financier, w as th e g u est speaker. Mr. H am m ell’s ta lk on th e m ining develop m en t of Canada at tim es becam e so realistic and convincing th a t m an y of th e m em bers expected to be p resen ted w ith a m ining p rospectus on th e w ay o u t of th e room. On F rid a y m orning, S eptem ber 15th, th e R oyal Y ork resum ed its cloak of placid endurance, know ing full w ell th a t a real convention h ad been in progress, b u t co n ten t in th e fact th a t m an y a try in g g u est h ad re tu rn e d to his hom e a b e tte r m an for his contact w ith Canada and its people; and th e in sp iratio n al m aterial th a t has been p resen ted to him free of charge—his only adm ission being a m em bership in th e F. A. A. M orgenthau said continued increases in com m odity prices to p a rity levels w ould save th e tre a su ry $220,000,000. L ifting th e su g ar quotas m ight save a n o th er $50,000,000, it w as pointed out. “H ow ever,” he cautioned, “you m ust rem em ber th e re w ill be o th er e x tra o rd in ary ex p en d itu res.” M orgenthau said th e tre a su ry has no legislation in m ind at p resen t for th e special session. The question of new taxes w as left open. A d m inistration spenders, th o ro u g h ly defeated at th e close of th e last ses sion of Congress, are likely to have th e ir w ay yet. Spending m ay not be 1 0 , 0 0 0 < j4 c /i^ % for relief or even p reten d to be selfliquidating b u t natio n al defense and w ar spending m ig h t satisfy th e group. Banking Legislation C ontroversial banking legislation in cluding th e F ed eral H om e L oan B ank bill, believed dead u n til Ja n u a ry m ight be pushed quietly th ro u g h th e special session w hile n e u tra lity takes th e spot light. The FH L B bill succeeded in arousing stiff opposition from the banking w orld last session since it would in effect set up a th ird banking system paying a high rate of in terest (T u rn to page 52, please) e i9 < r fe d 8 o c < > liiA iv € ly IN W A S H IN G T O N (C ontinued from page 23) th e sam e w ay, in ag ricu ltu re, th e Gov ern m e n t has provided ce rta in re serv es.” A tto rn ey G eneral M urphy, discuss ing anti-profiteering legislation, said th a t it w as being p rep ared to “enco u r age th e norm al recovery of things, n o t to re ta rd th em .” He revealed th a t new legislation w ill be designed to cor re c t w eaknesses in th e L ever Act of tw e n ty y ears ago and be “as free from being vague as possible.” M urphy said th e policy of th e d e p a rtm e n t w ith resp ect to p ro fiteering w ould be de cided by th e P re sid e n t w ho has em phasized th e re is an oversupply of foodstuffs in th is country. M urphy pointed out th e profiteering stu d y w as u n d e rta k e n “so legislation w ill be read y if needed—th a t’s all.” R ising prices m ean not only b e tte r incom es for th e fa rm e r b u t savings for th e G overnm ent as well. S ecretary WANTED "W e h a v e a n im m ed iate o p en in g for a m an 35 to 50 w ith m oral in teg rity , go o d s a le s p e rso n a lity , w ith b a n k in g or in v estm en t b a c k g ro u n d , w h o is c a p a b le of e a rn in g $3,000 to $5,000 u p w a rd s p e r y e a r . P e rm a n e n t position w ith old n a tio n ally -k n o w n c o m p a n y . G ive full e x p e rie n c e , e a rn in g s a n d sn a p sh o t in re p ly in g . O u r o w n staff k n o w s of this a d v e rtise m e n t. W rite Q. R. c a r e of NORTHWESTERN BANKER. Two rows of one strain (w ith ta sse ls) p ollinate six rows of another strain (d etasseled ). Photo, courtesy of Funk Bros. Seed Co., B loom ington, Illin ois. TH E MAGIC OF H YBRID CORN Product of the breeder's skill in applying the principles of Genetics and Rigid Selection The g o ld en g ra in crop of the m id w est h a s y ie ld e d to the d ic ta te s of scien ce. G en eticists no w sp e cialize in p ro d u cin g in b re d (self-pollinated) stra in s of corn u n d e r c a re fu lly controlled conditions. In turn, th e s e in b re d s tra in s a r e cro ssed a n d p re-tested for a b ility to p ro d u ce in c re a s e d y ie ld s; for b e tte r d ro u g h t a n d d is e a s e re sis ta n t c h a ra c te ristic s . A lert farm ers p la n t the re su lta n t se ed , a s s u re d of a m a z in g ly h ig h e r y ield s. Sixty p e rc e n t of th e corn g ro w n in the m id w est this y e a r w a s h y b rid corn. A nd four-fifths of this crop w ill b e m a rk e te d v ia live stock. T hus, th o u sa n d s of item s b a s e d on hybrid-corn-fed stock w ill join th e flow of d a ily tra n sa c tio n s o v er th e co u n ters of the D rovers B anks. The D rovers N ational Bank is a logical choice for the Chicago C orrespondent of M idw est Banks. Y our In quiry is In vited. M embers, F ederal D eposit Insu ran ce C orporation DROVERS NATIONAL BANK DROVERS TRUST 0 SAVINGS BANK UNI ON STOCK YARDS, CHI CAGO Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40 Noted Economists O n Investment Bankers Program R .E .C r u m m e r & C o m p a n y CHICAGO ILLINOIS 1ST NAT BANK BLDG Established 1897 H E effects of th e w ar on economic conditions in th e U nited States w ill be discussed before th e an n u al convention of th e In v estm en t B ankers A ssociation of A m erica by B enjam in M. A nderson, Jr., one of th e forem ost au th o rities on financial and m o n etary phases of economics. T his w as dis closed today by Jean C. W itte r of Dean W itte r and Company, San Francisco, p resid en t of th e association, along w ith a n u m b er of o th er additions to th e p ro gram for th e m eeting to be held a t Del Monte, California, October 9 to 13. Dr. A nderson, professor of econom ics a t th e U n iv ersity of C alifornia at Los Angeles, w as fo rm erly econom ist of th e Chase N ational B ank of New York and a u th o r of th e long series of Chase Econom ic B ulletins w hich have dealt w ith practically every im p o rtan t T M UNICIPAL BONDS O M A H A O F F IC E 508 Insu ran ce B uilding M. T. C r u m m e r , Mgr. D ES M O IN E S O F F IC E 314 Equitable Bldg. W alter P. D a v is , Mgr. M ORTGAGE IN V E ST M E N T CORPORATION SHORT TERM COLLATERAL TRUST NOTES Secured by FH A Insured Mortgages held under Trust Indenture by Central N ational Bank & Trust Company, Des Moines, Iowa, Trustee M o rtg a g e In v e stm e n t C orporation 825 Fleming Bldg. Des Moines, Iowa Offices: Dallas, Texas—Des Moines, Iowa—Houston, Texas—Tulsa, Oklahoma Over-Counter Facilities in All Markets Primary Markets in Iowa Securities McGUIRE, WELCH & CO. 231 So. LaSalle C H IC A G O Bankers Trust Bldg. D E S M O IN E S F .H .A . Insu red M ortgages Available for Bank Investment Originated and Serviced by THE NATIONAL COMPANY OF OMAHA 500 First National Bank Building OMAHA, NEBRASKA Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis economic developm ent of the last fif teen years. H e w ill address a general session of th e convention on T h u rs day, October 12. A fo u rth forum has been added to the program for W ednesday, October 11, Mr. W itte r also stated. I t w ill be on th e subject of relations betw een the over-the-counter secu rities m arkets and th e stock exchanges and presided over by F. Dewey E v e re tt of Hornblow er and W eeks, New York, ch air m an of th e association’s Stock E x change R elations Com m ittee. P aul H. Davis of P aul H. Davis and Company, Chicago, a governor of th e New Y ork Stock E xchange and one of those nom i nated for election as a vice presid en t of th e I. B. A. a t th e close of th e con vention, w ill p articip ate in the discus sion w hich is expected to deal ex tensively w ith th e re p o rt recently made to th e exchange by th e Public E xam ining B oard on C ustom ers P ro tection. T his is th e body th a t consid ered suggestions for a special b ro k er age bank. O ther forum s, previously announced, deal w ith “P riv ate E n te r prise in A m erica,” “M unicipal R evenue Bonds,” and “In d u stria l R elations.” A nother em in en t econom ist, Lionel D. Edie, economic co n su ltan t of New York, w ill also address th e convention, discussing p riv ate as co n trasted w ith socialistic financing of in d u stry , a sub ject th a t has been m ade p articu larly tim ely, spokesm en for th e association point out, by th e fact th a t conditions of em ergency such as those produced by w ar inevitably lead to suggestions th a t th e g overnm ent tak e over m ore and m ore of p riv ate functions. E v e re tt Dean M artin, professor of social phil osophy a t C larem ont College, C lare m ont, California, and for m any y ears d irector and head of th e dep artm en t of social philosophy of Cooper Union F o ru m in New York, w ill speak a t th e sam e session as Dr. Edie, discussing “Conflicting Philosophies of G overn m en t T oday.” O ther g uest speakers already an nounced include A lm on E. R oth, presi den t of th e San F rancisco E m ployers’ Council, w ho w ill address a forum on in d u strial relations, and Jam es L ynn Beebe of th e Los A ngeles law firm of O’M elveny, T u ller an d M yers, w ho will address th e forum on revenue bonds on th e subject, “The In tellig en t Con tro l of th e Issuance of R evenue B onds.” 41 pany, Inc., and C, W . Mead, president, N ebraska Bond and M ortgage Corpo ratio n and a m em ber of th e board of directors of the national association. NEBRASKA Mr. and Mrs. H arold T. L anderyou have re tu rn e d afte r a ten-day m otor trip to G reat Falls, Mont., Yellowstone P a rk and E stes P ark, w here th ey vis ited Miss L orraine Landeryou, w ho spent th e sum m er at the Cheley camps. Investment Bankers Association Organized 1920 Chemical Bank A B E M A R T IN P re s id e n t L in co ln Om aha’s M etropolitan U tilities Dis tric t an d city officials, on th e basis of recen t m unicipal bond levels, w ere co u n tin g tid y profits re su ltin g from re c e n t large-scale sales of sin k in g fund secu rities a t peak quotations. T he portfolio a d ju stm en ts, th e y ex plained, w ere larg ely a coincidence. One u tilities d irecto r said: “We, began sw itch in g long-term for short-term sin k in g fu n d secu rities six m o n th s ago to obtain m a tu ritie s in line w ith due dates of o u r ow n bonds.” C ity C om ptroller Stenicka sold $368,000 of city special assessm en t sin k in g fu n d in v estm en ts to help p ay off th e $466,000 police pension an d $72,000 co u n ty jail feeding judgm ents. The city actu ally realized a $57,000 profit on its tran sactio n . S ho rtly afterw ard , th e sam e bonds w ould have yielded less th a n $20,000 profit, th e com ptroller said. Mr. and Mrs. John M. D ouglas r e tu rn e d recen tly from T h ree Lakes, Wis., w h ere Mrs. Douglas h ad so en t a m o n th w ith h e r m other, Mrs. George W. Sum ner. She w as th e n joined by Mr. Douglas for a tw o w eek s’ trip into Canada. F o rm al opening of th e new stre a m lined offices of th e O ccidental B uilding an d L oan A ssociation of Om aha w as held recently, w ith P re sid e n t Ford E. H ovey an d o th er officers as hosts. T he firm is observing its 50th a n n i v ersary . T he new q u a rte rs w ere open fo r public inspection u n til 9 o’clock a t night. U nusual is th e in te rio r a rra n g e m en t of th e m ain lobby, w ith desks and de p a rtm e n ts arran g ed in circu lar effect. M ayor D an B u tler of O m aha said recen tly he w ould oppose an y con trib u tio n by th e city of O m aha to help in a n atio n al fight ag ain st federal law s im posing federal incom e tax es upon s ta te an d m u nicipal bonds. T he declaratio n w as in response to a le tte r from th e C onference of State R O B E R T P. E L L IC K S e c re ta ry O m aha Defense. The M etropolitan U tilities D istrict of Om aha co ntributed to th e fu n d last year. “If th e tre a su ry d ep artm en t succeeds in g ettin g local bonds taxed by th e g o v ernm ent,” B u tler said, “th e sam e rig h ts w ill exist for us against federal securities. I don’t believe th is is a m a tte r in w hich th e city should get involved.” A fter stockholders of th e S tandard Oil Com pany of N ebraska voted re cen tly to accept th e offer of th e S tand a rd Oil Com pany of In d ian a to p u r chase th e N ebraska com pany’s stock a t $17.50 a share, reorganization of the N ebraska concern im m ediately got u n d er way. H. W . P ierpont, p resid en t of th e N e b ra sk a com pany, said th e vote on th e basis of shares of stock w as 81 p er cent in favor of th e sale and only 2 per cent opposed. Seventy-nine stockhold ers atten d ed a m eeting of th e b oard of directors, rep resen tin g 75 p er cent of all holders. N ew articles of incorporation for th e N ebraska com pany w ere filed w ith th e N ebraska secretary of state a t L incoln as a first step in com pletion of th e deal. Inco rp o rato rs listed for th e new com p an y w ere Thom as C. W oods, E dw in H. H am m ond and R ichard W . Sm ith, all of Lincoln. T he com pany is cap italized at $2,500,000. A ppraisal of causes of th e last de pression and forecast of th e business and ban k in g fu tu re, chiefly as it applies to co n struction financing, w ere am ong subjects for discussion a t the a n n u al convention of th e M ortgage B a n k ers’ A ssociation of A m erica in De tro it October 4 to 6. O m ahans w ho atten d ed included T. R. R ichardson, vice president, W estern Securities Company; C. J. Claassen, president, F a rm e rs N ational Company; W. M. H argleroad of th e Service Life In su ran ce Com pany of Omaha; L inn P. Campbell, president, B yron Reed Com The board of directors of the Chemi cal B ank & T ru st Com pany declared th e reg u lar q u arterly dividend of 45 cents per share on th e capital stock of th e bank payable October 2, 1939, to stockholders of record Septem ber 19th. At th e sam e m eeting, F ra n k I. Cur ry, form erly m anager of th e b an k ’s office at T enth A venue and 23rd Street, w as appointed as a ssistan t secretary and tra n sfe rre d to th e W aldorf As to ria office. Jo h n L. B renner, form erly a ssistan t m anager at T enth A venue and 23rd Street, w as appointed m an ager of th a t office to succeed Mr. C urry. Jo h n H. Pfeiffer, assistan t m anager, w as tra n sfe rre d from the W aldorf A storia office to th e T en th A venue and 23rd S treet office. L a m s o n B r o s . 8 c C o. E S T A B L IS H E D 1874 141 W. Jackson Blvd., Chicago 50 Broadway, New York Our b ra n ch o ffic e s are equipped to render com p le te b ro k era g e serv ice in th e handling of grain (cash and futures), stocks, bonds, cotton and provisions. Private wires direct to all m arkets. B R A N C H O F F IC E S N e w Y ork, N . Y . B uffalo, N . Y . Cedar R a p id s, Iow a D a ven p o rt, Io w a D e s M oin es, Io w a D ubuque, Iow a F o rt D o d g e, Iow a Iow a F alls, Iow a M arsh alltow n , Iow a M ason C ity , Io w a S iou x C ity , Io w a S to rm L a k e, Io w a W a terlo o , Iow a F ran kfort, Ind. L a F a y e tte , Ind. M in n eapolis, M inn. S t. P au l, M inn. K an sas C ity , M o. S t. L o u is, M o. O m aha, N eb. L incoln, N eb. B loom in gton , 111. D e K a lb , III. G ilm an, III. G alesbu rg, 111. L a S a lle, 111. P eo ria , 111. Q uin cy, 111. M uskogee, O kla. M E M B E R S O F L E A D IN G S E C U R IT Y a n d C O M M O D IT Y E X C H A N G E S Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 M e m b e r F e d e r a l D e p o s it In s u r a n c e C o rp o ra tio n Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 National Bank of Comm erce NEBRASKA NEW S WM. B. H U G H E S Secretary Omaha E. S. HOLCOMB President Broken Bow Loan Figures P erh ap s suggested by a recen t s u r vey on loans conducted by th e N o r t h w ester n B a n k e r , and published last m onth, th e C ontinental N ational B ank of L incoln m ade its loaning facilities th e basis for an ad v ertisem en t recen tly ap p earin g in a Lincoln new spaper. The copy called a tte n tio n of th e read er th a t co n tra ry to public opinion, th a t b anks w ere not loaning m oney, th e C ontinental N ational w as loaning m oney to w o rth y in dividuals and firms in L incoln and vicinity. The ad v ertisem en t listed 1,464 com m ercial loans to tallin g $2,412,173; 415 autom obile loans of $122,351; and p e r sonal loans of 1,034 am o u n tin g to $202,557. A dding th ese and several of sm aller am ounts, th e to tal w as 3,036 new loans from J a n u a ry 1st to Ju ly 31st, th is year, in th e am o u n t of $2,892,006. T otal loans m ade and re new ed d u rin g th is period cam e to $6,667,258. Former Banker Dies Jo h n S. Stevens, th e first cashier of th e Peoples S tate B ank of Ram ona, died recently, victim of a h e a rt attack. Mr. Stevens w as w ith th e b an k for ab o u t five y ears a fte r its organization in 1907, th e n m oving to th e province of Nova Scotia, w here he lived since. H is death occurred sh o rtly a fte r his re tu rn from th e N ew Y ork W o rld ’s Fair. Regional Meeting M em bers of th e South C entral Ne b rask a R egional C learing H ouse A s sociation m et in H astings on th e eve n ing of S eptem ber 28th, as announced by O. A. Riley, president. It w as th e re g u la r fall m eeting of the b a n k e rs’ organization. Officers and executive com m ittee for th e en suing y ear w ere elected. The d in n er m eeting w as a t the C larke Hotel, beginning a t 6:45. F rom 70 to 80 officers and em ployes of the m em ber banks attended. Am ong subjects discussed w as ag ri culture, th e wage and ho u r law and social security. A . I. B. In Columbus A nnouncem ent has been m ade by C ashier H ow ard B urdick of th e Cen tra l N ational Bank, Columbus, of the com m encem ent of th e second annual stu d y course u n d er th e direction and sponsorship of th e A m erican In stitu te of B anking. In stru c to r in th e course w ill again be M arvin Schmid, w ho conducted the first class a y ear ago. L ast year, the course, w hich ra n th ro u g h 28 lessons, w as exclusively for em ployees of financial in stitu tio n s, w ith 15 students, 14 from Colum bus and one from David City, finishing the course. The course w as com m ercial law. Mr. B urdick announced a change in th e plan th is year, w hich w ill enable anyone in terested to enroll in the course at a considerably reduced fee. Bookkeeper Dies F re d J. M artis, 62, general book k eeper of F irs t N ational Bank, Omaha, w ho sta rte d th ere as a m ail boy 47 y ears ago, died recently a t a hospital of com plications w hich followed an ear infection several w eeks ago. Mr. M artis had lived in Om aha all his life. The only job he ever held w as w ith the bank. He w as a m em ber of U nion Pacific Council, No. 1069 of Royal A rcanum . O rganized back in 1902, th e N ational B ank of Commerce in Lincoln has grow n to be one of N eb rask a’s o ut standing banking in stitutions. F rom deposits of only a few thousands in its first few years, according to its Ju n e last statem en t the b ank had de posits of $10,374,451, and resources of $11,527,740. Capitalized at $300,000, the N ational B ank of Commerce has su r plus, undivided profits and reserves of close to a m illion dollars. Loans and discounts and bonds and in v est m ents are both w ell above th e $3,000,000 m ark, w hile th e b ank has cash and sight exchange of $4,568,886. Heads Merged Banks George F roehlich is th e new ly elected vice p resid en t of th e F irst N a tional B ank at Falls City. T he F irst N ational and th e Falls City State B ank w ere m erged, negotiations for th e consolidation having been u nder w ay for several m onths. Mr. F roehlich, only son of R. V. F roehlich, of Leigh, has been a resi dent of Falls City for tw o y ears d u r ing w hich tim e he w as associated w ith th e F irs t N ational Bank. He is the operating head of th e bank. Besides Froehlich, o ther officers of the F irs t N ational B ank are: E. H. Towle, president; Jo h n W. Towle, Omaha, vice president; F. W. Buchholz, cashier; A. D. Cam eron, a ssistan t cash ier; and E dw in S. Towle, H arold Bedwell and Mrs. M ary Bedwell, directors. Falls City now has tw o banks, th e F irst N ational and th e R ichardson County. The F irs t N ational w as es tablished 57 y ears ago. Prizes Offered 4-H m em bers show ing at th e county fair w ill have additional prizes in some divisions of the show as a resu lt of some prize m oney being offered by th e F a rm e rs and M erchants State B ank of Bloomfield to th e w in n ers of th e several divisions. The b an k is offering $60 in cash aw ards for the 4-H contest. Returns From Vacation Oscar Z im m erer, bookkeeper at the Avoca Bank, re tu rn e d to w ork recently after a vacation spent in th e w est. He enjoyed his stay a t E stes Park, b u t re tu rn e d hom e a few days before he w as due back on th e job. UNITED STATES C H EC K B O O K C O M P A N Y OMAHA, • B A NK E R S NEBRASKA S U P P L I E S • Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 • Resigns Mrs. Ada H eadley, w ho has been em ployed a t th e Citizens N ational Bank, A shland, since it sta rte d in b u si ness, has ten d ered h e r resignation, effective last m onth. Banker Married Mrs. H arley Bovee before h e r re cent m arriag e w as Miss H e n rie tta Faudel, d au g h ter of Mr. and Mrs. Charles F audel, Pierce. The young N E B R A S K A NEWS couple w ill m ake th e ir hom e in Pierce w h ere Mr. Bovee is a ssistan t cashier of th e Cones S tate Bank. Genoa Merger The F irs t N ational B ank and the Genoa N ational B ank of Genoa m erged recen tly and opened for business as th e Genoa N ational Bank. The m erger w as effected as an econom y m easure. Officers for th e new ban k are as follows: Jo h n Elm , president; C. R. • W right, W. Y. K enner and B. D. Gor m an, vice presidents; O. J. Irw in, cash ier; W. N. W innell and E. L. Burke, Jr., a ssistan t cashiers and Dr. H om er Davis and P eter Larson, directors. N EB R A SKA C O N V E N T IO N (C ontinued from page 17) 2:20 2:35 2:35 YOnU ^ NEW BUSINE' 3:05 h o m e o f the b u il d in g ANDJ f ASSOCIATION , , Q(Vl Bt O m aha, 322 South 18th 3:50 4:00 6:30 N ebraska S tate Bank, Broken Bow. In tro d u ctio n of b ankers of fifty y e a rs’ experience. A nnouncem ent of com m ittees. A ddress—“Public R esponsibili ties of th e B anking Profession,” by W. A. McDonnell, president, A rkansas B ankers Association, L ittle Rock. A ddress by Dr. W illiam J. Hale, research consultant, Dow Chem ical Company, M idland, Michi gan. R ound table discussion of the W age-H our Law, C hairm an M. M. T aylor presiding. Opening statem en t by P. A. Ude, cash ier, N ebraska Security Bank, Deshler. A djournm ent. D inner, en terta in m e n t a n d dance at th e H otel Fontenelle. Tuesday M orning, October 24tli Ballroom , H otel F o n ten elle 10:00 10:10 In O b s e r v a n c e o f 50 Years of Service Home o w n e rs a n d in v esto rs h a v e u se d the facilities of the O ccid en tal for a half-cen tury. O ur n e w q u a rte rs a re testim ony to the su c c e ss of this fine old institution. 10:15 10:55 Statement October 1, 1939 R ESO U RCES Real Estate Lo a n s......................................................................................... $ 3 ,6 8 7 ,1 1 3 .5 0 Real Estate Sold on C ontract................................................................. 7 1 2 ,2 9 1 .5 4 Stock Loans ................................................................................................... 9 ,2 2 7 .4 2 Office B u il d in g .............................. ............................................................................................... Real Estate .................................................................................................................................... Foreclosure A c c o u n t ................................................................................................................... Furniture and F ix tu re s............................................................................................................. Oash and B o nd s.............................................................................................................................. Taxes and Insurance Advanced. . . . Interest Accrued (Mortgage Loans) Other A s s e t s ............................................ $ 4 ,4 0 8 ,6 3 2 .4 6 2 7 0 ,0 0 0 .0 0 1 7 7 ,5 1 8 .2 7 2 7 ,7 2 3 .1 4 11:00 1.00 8 2 2 ,4 3 3 .9 0 1 3 ,0 3 9 .7 4 7 ,40 8.31 3 7 2 .0 0 $ 5 ,7 2 7 ,1 2 8 .8 2 L IA B IL IT IE S Capital Stock .................................................................................. Incomplete Loans .......................................................................... Advance Payments on Taxes and Insurance......................... Reserves and Undivided P ro fits................................... ............. $ 5 ,1 4 1 ,0 4 1 .0 4 1 4 .1 8 1 .7 1 20 5 1 8 .9 3 5 5 1 ,3 8 7 .1 4 11:45 $ 5 ,7 2 7 .1 2 8 .8 2 OCCIDENTAL Building 8c Loan Association 322 So. 18th Street Omaha, Nebraska F ord E. H ovey, P re sid en t Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12:00 12:15 Call to order by th e president, E. S. Holcomb. A ddress—“By T h eir Faces Ye Shall K now T hem ,” by Ju lian T. Baber, U nited States Secret Service, W ashington. A ddress—“Profitable B anking,” by E. S. W oolley, director of b an king installations, George S. May & Company, New York City. In tro d u ctio n of the w in n er of th e association’s essay contest on th e subject “The Value of Y our Local B ank to Your Com m u n ity ,” Miss M ary Claire Jo r dan of W inside. R ound table discussion of Gen eral L e n d i n g Com petition, C hairm an M. M. T aylor presid ing. O pening statem en t by J. Y. Castle, cashier, McDonald S tate Bank, N orth Platte. R ound table discussion of the Social S ecurity Act, C hairm an M. M. Taylor, presiding. Open ing statem en t by R. I. Stout, president, F irs t N ational Bank, Tekam ah. A djournm ent. C onvention luncheon, H o t e l Fontenelle. (T u rn to page 48, please) 45 P resid en t A lvin E. Joh nson of the Livestock N ational B ank of Omaha and Mrs. Johnson w ere hosts recently at d in n er honoring G overnor R. L. Cochran of N ebraska, Mrs. Cochran, and th e ir daughter, M ary Eileen. Miss C ochran and Miss M yrtle Louise Jo h n son w ere cam pm ates th is sum m er at Camp Lake H ubert. Miss Cochran is en terin g W ard-B elm ont this fall. The B ank of F loren ce building, in su b u rb an Omaha, w hich has been occu pied by a b an k in g house continuously since 1856, w ill be vacated D ecem ber 1 w hen th e p re se n t B ank of F lorence m oves to a new hom e a t T h irtie th S treet and Ames A venue, n e a re r the cen ter of the city. The nam e of th e b an k w ill be changed, according to R obert Hall, executive officer, to th e N o rth Side Bank. In th e old building, one of O m aha’s landm arks, is th e original v a u lt con Leon P ow ers, general agent for the F arm C redit A d m inistration at Oma ha, entered a hospital in Scottsbluff, Neb., recen tly for tre a tm e n t after he w as tak en ill w hile in th a t city. He re tu rn e d to Om aha soon afterw ard. Mr. and Mrs. R ay R. R idge have re tu rn e d from a 10-day m otor trip th ro u g h Colorado and W yom ing. T hey w ere guests a t th e Tom W olff ran ch at M edicine Bow, Wyo., and atten d ed the an n u al ro u ndup there. Previously, th ey sp ent a sh o rt tim e at N o rth ern Pine Lodge, P otato Lake, Minn., and a t W innipeg, Canada. Mr. Ridge is vice presid en t of th e Om aha N ational Bank. stru c ted about 1857. A t one tim e, the original b ank issued its ow n money, including $1, $2, $3, and $5 bills. It w as one of only a few banks ever to issue a $3 bill. The p resen t b an k w as organized in 1930 afte r a previous b an k of th e same nam e had closed. The p resen t b ank is ow ned principally by officers and stockholders of the F irs t N ational B ank of Omaha. T he new building w ill be one story, 24 by 80 feet, and w ill give th e bank m ore room to care for an increase in business. C harley D ickerson, longtim e em ploye of th e Omaha N ational Bank, once w as know n as “O m aha’s official b u tler.” A n um ber of y ears ago, he prepared banquets for m any notables w ho w ere Y o u Can S e r v e F arm Owning Clients by reco m m en d in g our FARM MANAGEMENT SERVICE We W ill Welcome a Visit from you F o r Io w a and N e b ra sk a F a rm s Skillful business manage ment applied to tenant farms is the secret of success. Names of owners for reference will be sent on request. Write for our FREE book let “Successful Farming For Absentee Owners.” d u r in g ... N EBRA SKA BA N KERS C O N V E N T IO N O c t o b e r 23 a n d 2 4 and A K -S A R -B E N L IV E STO CK AND H ORSE SH O W Farmers National Company 388-396 B ra n d eis T h e a te r B u ild in g Omaha, Nebr. O c t o b e r 2 2 to 2 8 , In c. LIVE STOCK NATIONAL BANK O M A H A Member Federal Deposit Insurance Corporation Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 46 • e n te rta in in g in Omaha. He officiated at so m any of these public and p riv ate g ath erin g s th a t v isito rs to th e city used to say: “T h e re ’s th a t b u tle r again.” C harley k n ew th e w ines, th e rig h t te m p e ra tu re of d rin k s and th e food preferences of p ro m in en t Omahans. H e w as in co n stan t dem and. A w om an from B oston once said: “T hey give w on d erfu l p arties in Omaha, b u t th e y ’ve all got th e sam e b u tle r.” E th el M ellor, teller a t th e Om aha N a tional B ank, spoke a t th e sev en teen th an n u a l convention of th e A ssociation N E B R A S K A N E WS of B ank W om en Septem ber 21 to 24 in Seattle, W ash. H er topic w as “Serv ing th e W om an C ustom er.” O ther Omaha m em bers of th e asso ciation are A nna T. Olsson of th e Live Stock N ational Bank, M innie P halen of th e U nited States N ational B ank and F ran ces E. Stem of th e F irs t N a tional Bank. Mr. and Mrs. G w yer H. Yates re tu rn e d recently afte r an eastern trip w hich took them to O gunquit, Maine, th e W hite M ountains and New York City. Charter No. 2 0 9 First National Bank of Omaha • Mr. and Mrs. Otis T. A lvison spent a m onth w ith th e ir daughter, Mrs. John W. H ow ard, and h e r fam ily in Beloit, Wis. Mr. A lvison is vice p resident of the Om aha N ational Bank. You h e a r lots of people say they envy ban k ers th e ir hours. B ut th e tr u th is, th ey don’t know w h at th e y ’re talk in g about. B anks m ay close a t 2:00 p. m., b u t for m ost b ank em ployes th e w ork th en really begins. To prove this, T he Omaha WorldHerald, in its ro to g rav u re section, re cently featu red a series of pictures tak en in Omaha banks to show how, w hen th e b anking doors close behind the last of th e d ay’s custom ers, the day ’s business has to be recorded and th e figures proved. T h a t’s w hy “b an k e rs’ h o u rs” don’t live up to th e ir name. The Live Stock N ational B ank of Omaha has received approval from the com ptroller of curren cy to increase the b a n k ’s capital stock from $450,000 to $500,000, according to P resid en t A lvin E. Johnson. T he increase is being m ade by pay m en t of a stock dividend of $50,000 in w hich all shareholders are p articip atin g in p roportion to th e ir holdings. The b an k board also voted to in crease su rp lu s from $450,000 to $500, 000, th u s m aking to tal capital and su r plus $1,000,000, w ith total resources exceeding $15,000,000. W hen th e b an k opened D ecem ber 9, 1907, its capital stock w as $100,000. W. B. T. B elt, form er presid en t and ch airm an of th e board of th e N o rth w estern Bell T elephone com pany, has been elected p resid en t of the N ational Security F ire In su ran ce com pany of Omaha, succeeding D enm an K ountze, form er banker, w ho resigned to form a new general in su ran ce agency at Omaha. The O ldest N ational Bank From Omaha West E. H. P orter of P hiladelphia, secre tary -treasu rer of th e In su ran ce Com pany of N o rth A m erica, becam e secre ta ry -tre a su rer of th e N ational Secur ity F ire In su ran ce Company, b u t will continue to live in th e east. Nationalized 1 863 O F F IC E R S T. L. D a v is .......................................... P re s id e n t F. W. T h o m a s ...................V ice P re sid e n t J . F . M c D e r m o t t .................. V ice P re s id e n t C. D. S a u n d e r s .........................V ice P re sid e n t J . T. S t e w a r t , I I I ................................ C ashier A. H . Ch i s h o l m .........A ssista n t C ashier O. H . E l l i o t t ......................A ssista n t C. H . V e b e r ...........................A ssista n t E . F . J e p s e n ........................ A ssista n t E . N. S o l o m o n ...................... A ssistant J. F. D a v is ............................. A ssista n t H . A. A r n s b e r g e r ............ A ssista n t W . E . S p e a r ...................................T ru s t Officer E . G. S o l o m o n . . . .A ssista n t T r u s t Officer M em b er F ed eral R eserve System C ashier C ashier C ashier C ashier C ashier C ashier M em ber F ed eral D ep o sit Insurance C orporation Fred J. M artis, 62, general book keeper for th e F irs t N ational B ank of Omaha, w ho began a t th e b ank as a m ail boy 47 years ago, died recently at an Omaha hospital. He w as a lifelong resid en t of Omaha. Y O U R STA TE B A N K ER S A S S O C IA T IO N O F F IC IA L S A F E , V A U L T A N D T IM E LO C K EXPERTS F. E. D A VEN PO RT & CO . OM AHA Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47 suprem e co u rt recently asking th a t the ju d g m en t of $5,838 en tered against it in d istrict court in favor of the tru ste e of th e b a n k ru p t GoodmanB uckley T ru st Com pany be set aside. W. H. M unger, ban k officer and guardian for F ra n k A. Mooney, in com petent now deceased, loaned $6,000 to th e tru s t com pany. D istrict Judge Broady, in Lincoln, recen tly en tered ju d g m en t in th e case of E. H. L u ik art, receiver of th e F irs t S tate B ank of B ethany, ag ain st a n u m b er of stockholders for double liability. T he ju d g m en ts en tered w ere ag ain st H en ry H eiliger for $12,200, H. P. Heiliger for $5,189, ag ain st E rn e st Niemeier for $3,000, J. Loyd M cM aster $1,000, C harles P hillips, Jr., $1,500, C. E. Sanden $4,000, Mrs. C. R oscherk $392.87, A dam H eiliger $5,000 and F ra n k Pool, as executor of th e estate of C harles W. Pool, $400. The B eth an y B ank w as tak en over by th e b an k in g division of th e d e p a rt m en t of tra d e and com m erce on No vem b er 26, 1929. A t th a t tim e th e re w as $164,468.01 due creditors. The in debtedness w as reduced to $39,294 in 1936 and th e ju d g m en t ag ain st stock holders w as en tered to obtain funds u n d er the liability act to take up m ost of th e rem aining indebtedness. N ebraska state banks a t th e end of Ju n e th is y ear found them selves w ith alm ost tw o m illion dollars m ore bu si ness on th e ir books th a n th ey had Ju ly 1, 1938. B ut m ore th an th at, Ben N. Saund ers, state b an king d ep artm en t direc tor, has a feeling th e 290 state banks are on an even m ore sound base th an th ey have been for several years. D ur ing th e last tw elve m onths only one b ank has been closed and th e d e p a rt m ent, as its liquidating agent, has already reim bursed th e FDIC for eighty p er cent of the deposits it paid in full. A ttorneys for th e F ir st N ational Bank of North P latte filed a brief in Buckley, as m anaging officer of the tru s t com pany, tra n sfe rre d $4,200 of the m oney received to a corporation ow ned by him self, and used th is sum to pay off an overdraft. T he district court held th a t th is was, in law, con version by th e bank of th a t sum, and directed th a t it repay th e tru stee, be cause M unger knew th a t B uckley w as occupying a place of tru s t w ith the com pany and could not th u s use its moneys. The b ank says th a t it w as entitled to a ju ry tria l to determ ine w h eth er it acted w ith any frau d u len t intent, and denies th a t the tru s t com pany w as at th e tim e or is now insolvent. Its atto rn ey s claim ed th e co urt ignored the fact th a t th e estate of th e incom p eten t lost no th in g because th e m o rt gages tak en for th e loan w ere fore closed, and th a t B uckley repaid th e money. The N ebraska b anking dep artm en t announced recen tly th a t an additional 15 p er cent dividend of $1,172 had been paid on deposits of th e closed Cowles S tate B ank at Cowles, W eb ste r county. The paym ents bro u g h t th e total d istrib u ted to $3,908, w hich w as 50 p er cent of th e deposits. PYPER COMPANY I N C O R P O R A T E D MUNICIPAL BONDS Efficient Correspondent Service with a *'PersonaÍ Touch " O ver-C ounter F acilities In All M ark ets (j)N T IN E H T A L R A T IO N A L © Ba“k 305 City National Bank Bldg. COUNCIL BLUFFS, IOWA LINCOLN Member Federal Deposit Insurance Corporation Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 48 • Air-Conditions Its Safety Deposit Vaults Deep in th e u n d erg ro u n d stro n g holds th a t p ro tect th e safety deposit vaults of The U nited States N ational B ank of Omaha, cu stom ers m ay now go over th e ir valuables in air-condi tioned com fort. The U nited States N a tion al B an k is th e first in stitu tio n of its k in d in dow ntow n Om aha to install air-conditioning in th is d ep artm en t. Now, tem p ered a ir com fort prevails in both th e low er vault, w hich holds the safety deposit boxes of th e b ank N E B R A S K A NEWS and m ajor business concerns, and th e upper v au lt im m ediately below the b an k ’s m ain floor, devoted principally to th e use of individuals and business firms w ho do not req u ire th e larger vault capacity. E v ery custom er room, corridor, and even th e v au lt th em selves receive co n stan tly circulated, w ashed air, at a com fortable year ’ro u n d tem p eratu re. The in stallatio n req u ired several stru c tu ra l changes. The steel grill and barred door en tran ce to th e large v au lt have been faced w ith heavy, three-ply, bullet-resisting glass. Two one-quarter . inch lam inations of glass face both sides of a solid panel three-q u arters of an inch thick. In d em onstration tests, a b ullet fired from th e Springfield arm y rifle a t 60 feet, p en etrated a % inch thickness of boiler plate, w hile u n d er th e sam e con ditions, th e b ullet dug a hole V2 inch deep in th e th ree ply glass, b u t did not p e n etrate fu rth e r or cause any glass to leave th e rev erse surface. A speaking tube has been installed for com m unication w ith th e guards in co n stan t atten d an ce behind th is w all of glass. Not only does th is in stalla tion give th e last w ord in protection but it also confines th e conditioned air w ithin th e vault. T his air-conditioning p roject m arks an o th er progressive step by The United States N ational B ank of Omaha in th e in terests and consideration of its custom ers. N EB R A SKA C O N V E N T IO N (C ontinued from page 44) T uesday A fternoon, October 24th B allroom , H otel F o n ten elle 1:45 1:45 1:55 2:05 \\ O u r Kind of Bank 2:25 'HE thing that makes the Am is equipped to render to correspond erican National so useful to us ent banks everything they need in as a Chicago correspondent is that the way of speedy, accurate service. T they really understand our problems. In addition it offers the personal at It’s our kind of bank and its officers tention of men whose actual expe seem able to give us just the sort of rience has made them conversant information and help we need." ★ ★ ★ 2:45 3:30 with the problems of banks in ★ smaller communities. Come in pçv The American National Bank and see us the next time you 4:00 are in Chicago. and Trust Company of Chicago AMERICAN NATIONAL BANK AND TRUST COMPANY 4:45 ojf- C A tca ^xr LA SALLE S T R E E T AT W A S H I N G T O N M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a ti o n C O M M E R C I A L • C H E C K I N G Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • S A V I N G S . TRUSTS 4:50 5:00 Call to o rder by th e president, E. S. Holcomb. R eport of th e secretary, Wm. B. H ughes. R eport of th e treasu rer, F. W. Thom as. E lection of N ebraska officers for th e A m erican B ankers As sociation—by m em bers of th a t organization, M. M. T aylor of Columbus, state vice president for th e A. B. A., presiding. R eport of th e R esolutions Com m ittee by W. F. W enke, cash ier, P en d er State Bank. R eport of th e A uditing Com m ittee by M. M. Taylor, p resi dent, C entral N ational Bank, Columbus, chairm an. A ddress—“R ecu rren t D rouths; N ebraska’s Problem ,” by Em il E. Placek, president, F irst Na tional Bank, W ahoo; chairm an, C om m ittee on A griculture, N. B. A. R ound table discussion of Safety D eposit Box Methods, C hairm an M. M. T aylor presid ing. O pening statem en t by N orm an E. Shaffer, cashier, F irs t N ational Bank, Hooper. R eport of th e N om inating Com m ittee, by C hairm an W. S. Col lett, president, C rete State Bank. In stallatio n of new officers. A djournm ent. 49 • Entertainment M onday, October 23rd 12:30 6:30 L uncheon hon o rin g 5 0 - y e a r bankers. D inner in ballroom , H otel Fontenelle. F loor show —dance. Golf. (In q u ire a t convention desk.) Tuesday, October 24th 12:15 8:00 C onvention luncheon, H o t e l Fontenelle. Ak-Sar-Ben H orse Show. Golf. (In q u ire a t convention desk.) N E B R A S K A N E WS • plays—H. D. McCowan, W orcester, M assachusetts; golf—-John F. H ollen beck, Springfield, Ohio; ladies e n te r ta in m en t—Mrs. Grace B ryan, W il m ington, D elaw are; new s and pub licity—Syd J. H ughes, New York, New York; nom inations—R alph W. P itm an, P hiladelphia, P ennsylvania; program —R. W. W atson, New York, New York; re g istratio n s—Joseph E. B irnie, A t lanta, Georgia; resolutions—H. B. W eaver, D avenport, Iowa; and sec tional associations—C harles H. B ry ant, Des Moines, Iowa. Appointment C harles J. Z im m erer, vice presid en t of th e Com m ercial C redit Com pany of B altim ore, announces th a t effective th is m o n th H arv ey W. Salm on as sum es th e responsibilities of resid en t m anager of th e b an k relatio n s de p a rtm e n t of th e com pany in Chicago. Mr. Salm on tak es th e position held u n til recen tly by George W. Provost, Jr., w ho has resigned to accept a posi tion w ith th e C entral H anover B ank & T ru st Company, of N ew York. Endorse Johnson A One th o u san d m em bers of Chicago C hapter, A m erican In s titu te of B an k ing, a t a g en eral m eeting, h e a rtily en dorsed th e action ta k e n by th e board of d irecto rs placing th e nam e of C. E d g ar Johnson, a ssista n t cashier of The F irs t N ational B ank of Chicago, in n om ination for th e executive coun cil of th e A m erican In stitu te of B ank ing, a t th e n e x t natio n al m eeting of th e organization to be held a t Boston in Ju n e 1940. F o r th e p a st tw enty-eight y e a rs Mr. Johnson, a life m em ber and an In stitu te g rad u ate, has show n his loy alty to th e In s titu te by o u tstan d in g service to Chicago C hapter. He has held n u m ero u s com m ittee ap p o in t m en ts an d all of th e elective offices locally, has been a m em ber of several natio n al com m ittees, h as actively p a r ticipated in conference w o rk a t con ven tio n s and has served efficiently four y ears as associate councilm an. H is o u tstan d in g success as ch airm an of th e 1933 convention com m ittee w as such a d em o n stratio n of organizing ab ility th a t th e re have been few b a n k e rs ’ m eetings of an y size in th is city since th a t tim e w hich have n o t de pended upon him for som e degree of m anagem ent. Morris Plan Convention A pp o in tm en t of W allace D. M cLean as g en eral ch airm an for th e T w en tieth A nnual C onvention of th e M orris P lan B an k ers A ssociation, w hich w ill be held October 9th, 10th and 11th, a t Rye, N ew York, has been announced by H a rry E. Small, of Cleveland, p resi dent of th e A ssociation. Mr. M cLean is ch airm an of th e board of th e M or ris P lan In d u stria l B ank, N ew Y ork City. A nnou n cem en t h as also been m ade of th e various convention com m ittee chairm en, w hich are: A uditing — E lw ood G. Childers, W ashington, D. C.; red en tials—R. A. E lm endorf, E vansville, Indiana; en te rta in m e n t—M. P. B radley, N ew H a ven, C onnecticut; exhib its and disNorthwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S in c e 1 8 8 1 F. E. DAVENPORT & CO. Has served the Bankers in Timelock, Safe and Vault Inspection • We are proud of this record and of our relations as the official experts of The Nebraska Bankers Association • Our 24-Hour C ontinuous Service Guarantees You Im m ediate A tten tio n • Distributors of YALE & TOWNE MFG. CO. Bank Locks and Day Protection Equipment F. E. D A V E N P O R T & C O . O M A H A CONDENSED STATEMENT, JUNE 30th, 1939 National Bank of Commerce O F L IN C O L N , N E B R A S K A R ESO U R C ES L oans a n d D isc o u n ts......................$ 3,659,409.48 O v e rd ra fts ....................................... 844.29 B an k in g H ouse, F u r n itu re and F ix tu re s ....................................... 253,000.00 R eal E s ta te ..................................... 21,000.00 U. S. B o n d s....................................... 3,000,000.00 O th e r B o n d s ..................................... 2,500.00 W a rra n ts ......................................... 4,100.34 Stock F e d e ra l R eserve B an k . . . . 18,000.00 Cash a nd S ig h t E x c h a n g e ............. 4,568,886.44 L IA B IL IT IE S C ap ital ......................... $300,000.00 S urplus ........................ 300,000.00 C o n tin g e n t R ese rv e s. 300,000.00 O th e r R ese rv e s........... 200,000.00 U ndivided P r o fits ___ 41,288.81 $$ 1,141,288.81 R eserve fo r D ividends.................... __ 12,000.00 D eposits ............................................ 10,374,451.74 $11,527,740.55 $11,527,740.55 M em ber of th e F e d e ra l D e p o sit In s u ra n c e C orp o ratio n O F F IC E R S M. W E IL , P re s id e n t BY RO N D U N N , E xecutive V ice P re s id e n t and T r u s t Officer E R N E S T C. FO LSO M , Vice P re sid e n t A L B E R T A. H E L D , V ice P re s id e n t J U L IU S W E IL . V ice P re sid e n t B. G. CLA R K , C ashier an d A ss is ta n t T r u s t Officer D. S. COZAD, A ss is ta n t C ashier 50 New Omaha General Agency A N E W general in su ran ce agency, com prised of tw o w ell-know n in suran ce m en, Jo h n K. M orrison and D enm an K ountze, has been organized in Omaha, and is s ta rtin g business u n der th e firm nam e of M orrison and K ountze. Jo h n K. M orrison has been in th e in su ran ce business for m an y years, w ith h ead q u a rte rs in Omaha, o perating th ro u g h th e w estern te rrito ry u n d er the nam e of M orrison & Com pany, and is w ell know n in in su ran ce circles. D enm an K ountze is form er presi dent, secretary, tre a su re r an d director of th e N ational S ecurity Insu ran ce Com pany, th e la tte r title w hich he still retain s, and is w ell know n in national and local insurance circles. A ssociated w ith th e firm of M orri son and K ountze are N orm an N. K em m ler, M ark W. Besack and E. H. D ahlgard, w ho w ill be assisted by E. F. A nderson and E a rl Woods, as field re p resen tatives. The official set-up of th e M orrison Rates Reduced O F F IC E R S C. L. F re d ric k se n , P re s id e n t M . A. W ilso n , V ice P re s id e n t and C ashier W . G. N elson, A s s is ta n t C ashier W . C. Schenk, A ss is ta n t C ashier L. W . R oss, A ss is ta n t C ashier O ur Pair of A ces Two policies— the "Aces" of our corre spondent service— are rigidly maintained at the Live Stock National Bank of Sioux City. 1. There must be complete provision for every banking need. 2. There must be efficiency in our methods and equipment. So, no matter whether you send us live stock, hay and grain items or general corre spondent business, we can serve you well in Sioux City. LIVE and K ountz G eneral Agency is Jo h n K. M orrison, presid en t and treasu rer; D enm an K ountze, vice presid en t and secretary, and M ark W. Besack, N or m an N. K em m ler and E. H. D ahlgard, a ssistan t secretaries. T he offices of th e com pany w ill be m aintained in th e B randeis T heatre Building, Omaha, and w ill operate as general agents and u n d erw ritin g m an agers in th e states of N ebraska, Iowa, K ansas and South D akota for the fol low ing com panies: Alliance, A nchor, Columbia, F ederal Union, Globe & R utgers, Im perial As surance, N o rth River, P hoenix A ssur ance and Providence W ashington. STO CK M anufacturers T ru st Company, New York, announces th a t its discount rate for m ost classes of personal loans has been reduced to 3 1/3 per cent per annum , w hich is th e low est rate know n to be available for th is type of credit in New Y ork City. The only additional charge is % p er cent per an n u m for in su rin g th e life of the b o rrow er du rin g th e term of the loan. T his form of insurance, w hich is a featu re of th e b a n k ’s personal loan plan, serves to pro tect co-m akers as w ell as th e estate of th e borrow er. P ersonal loans are extended by M anufacturers T ru st Com pany from $60 to $3,500, and are repayable in equal m onthly in stallm en ts over a period of 12 or 15 m onths at th e option of th e borrow er. P ersonal loan service w as inaugu rated by M anufacturers T ru st Com pany a little over four years ago so as to enable salaried w orkers, wage earners, business m en and others to obtain sm all loans on advantageous term s. D uring th is period the b an k ’s personal loan d ep artm en t has made over 100,000 loans a t an average of about $300. In m aking th is rate re duction, th e bank hopes th a t an even larg er clientele will th ereb y be en abled to enjoy th e benefits of th is helpful service. Not Important N A T I O N A L B A N K S io u x C it y , Iowa “ The Bank at the Yards” F irs t Golfer: “Shall we play another ro u n d n ex t M onday?” Second Golfer: “Well, I w as to be m arried on M onday, b u t I can p u t th a t off till T uesday.” Member Federal Derposit Insurance Corporation SELL YOUR BANK D IR E C T O R S — ----------- C. R. M cK en n a, P re s id e n t, Jo h n so n B isc u it Co. B. L. Sifford, A tto rn e y , S ifford & W ad d en G. F. S ilk n itte r, P re s id e n t, S ioux C ity S to ck Y a rd s C om pany C. L. F re d ric k s e n , P re s id e n t M. A. W ilso n , V ice P re s id e n t and C ash ier H . C. B o sw ell, S e c .-T re a s., W e s te rn C o n tra c tin g Corp. Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ---------------- The “Walters” Way Without Publicity Qualified, carefully investigated bank employees furnished free THE CHARLES E. WALTERS CO. Omaha, Nebraska 51 13th and 14th. The in stru cto rs are P. H. McDowell, vice presid en t and tru s t officer of the N o rthw est Security N ational B ank of Sioux Falls, w ho w ill teach th e course in In v estm en ts II and Clarence R. Beck, in stru c to r from W ashington H igh School of Sioux Falls, w ho w ill teach th e course in Econom ics II. SOUTH DAKOTA NEWS W IL L IA M C. R E M P F E R P re s id e n t P a rk s to n Dividend Checks G EO R G E M. S T A R R IN G S ecre ta ry -T rea su re r H u ro n Dividend Sioux Falls A . I. B. W. E. Stevens, p resid en t of th e N a tional B ank of South D akota, Sioux Falls, announced th a t stockholders of record, Septem ber 12th, w ould receive a re g u la r dividend of 4 p er cen t and an e x tra dividend of 2 p er cent. O perations of th e b an k for th e first six m onths of 1939 are covered by th e dividends, it w as explained. T he in stitu tio n has affiliated b ran ch es at V erm illion and H uron. A dolph Lodmell, ch airm an of the publicity com m ittee of th e Sioux Falls C hapter, rep o rts th a t th e an n u al com m encem ent of th e Sioux F alls A. I. B. w as held Septem ber 7th, preceded by a b an q u et and a com m encem ent ad dress by C. A. C hristopherson, p resi dent of the U nion Savings Bank, Sioux Falls, South Dakota, who talked on p resen t day problem s and banking and finance. C ertificates w ere p resen ted to this y ears g rad u ates w ho w ere P aul E. T aubert, pre-standard certificate and Miss Bessie Dunn, stan d ard certificate, both em ployes of th e N o rthw est Se cu rity N ational B ank of Sioux Falls. The evening ended by the show ing of tw o vacation films by J. V irgil Lowe. It w as announced at th is m eeting th a t classes w ould open Septem ber Dies In Clark R ansom J. M ann, 81, organizer of th e C lark C ounty N ational B ank, died a t his hom e in C lark a fte r a sh o rt ill ness. A resid en t of C lark since 1900, Mr. M ann organized th e b an k in 1902. He served as p resid en t of th e b an k for several years. He w as also connected w ith a b an k at B row ntow n, M innesota, w hich he helped organize in 1892. Before opening th e C lark B ank, Mr. M ann w as in th e real estate business. He also spen t som e tim e as b rak em an and conductor on th e Chicago and N o rth w e ste rn Railroad. Establish Bank Leo Seppala, of Buffalo, and B. W. K eating of Buffalo Gap, have com pleted arra n g e m en ts for establishing a b ank in E dgem ont, w hich, since 1932, has been w ith o u t ban k in g facili ties. A ccording to Mr. Seppala, a r ran g em en ts w ith th e S tate B anking Com m ission, for estab lish in g a new bank, are com pleted. Mr. Seppala’s experience in b an k in g dates from 1920, w hen he first began w o rk a t th e F irs t S tate B ank in Buffalo. He has been cashier th e re from 1922 u n til th e present. D ividend checks for th e State B ank of Iren e are available according to F. R. Strain, liquidator in charge for th e FDIC. The dividend is for 75 p er cent of the total deposits at the tim e of the b a n k ’s closing about a year and a half ago. Mr. S train has been in charge of th e Iren e b an k since last October. Liquidated The liquidation of th e receivership of th e old F irs t N ational B ank of Belle F ourche and th e final closing of its affairs, w as announced by the com ptroller of th e currency. T otal disbursem ents, including off sets allowed, to depositors and other creditors of th e b ank aggregated $485,557. Anniversary M em bers of th e P ierre N ational B ank staff to g eth er w ith th e ir fam ilies w ere guests of the m anagem ent 1939 Group Meetings South D akota group officers have selected th e dates October 14th to October 21st, inclusive, for th e 1939 group m eetings. A schedule of th e seven m eetings is as follows: Saturday, October 14th, Group VII, at Sylvan Lake Hotel. Monday, October 16th, Group I, a t Gregory. Tuesday, October 17th, Group III, at M itchell. W ednesday, October 18th, Group VI, at Mobridge. T hursday, October 19th, Group IV, at W atertow n. F riday, October 20th, Group II, at F landreau. S aturday, October 21st, Group V, a t H uron. Officers of th e seven Group A ssociations m et in H uron recently to outline 1939 G roup M eeting plans. A bout half of th e Group M eetings w ill be afternoon and evening affairs, w hile th e o thers w ill be only evening m eetings. T entative arran g em en ts call for a talk on earnings by P resid en t R em pfer, a discussion of th e W age and H our Act by som eone w ell-versed on th e subject, and a talk by som eone a p a rt from the banking business on w h at he expects from his bank. Some G roups m ay have o th er featu res on th e ir program s aside from those en u m erated above or m ay have som ething en tirely different—th e program s, of course, being en tirely up to th e officers. UNITED STATES C H EC K B O O K C O M P A N Y O M A H A , NEBRASKA • B A NK E R S S U P P L I E S • Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 52 • SO U TH a t a b an q u et held last m onth. The b ank celebrated its 50th an n iv ersary . Places w ere set for 42 a t th e d in ner, a fte r w hich Hon. C harles H. B urke, vice p resid en t, spoke on th e p ast h isto ry of th e organization, b rin g ing it up to th e presen t. D A K O T A Annual Picnic B ankers, rep resen tin g th e South ea ste rn South D akota Regional C lear ing H ouse A ssociation, and th e ir fam ilies, held th e ir an n u al picnic near C enterville recently. T he picnic is held y early for officers and em ployees of th e banks and fam ilies. A bout 60 people w ere in attendance a t th is y e a r’s picnic. George S tarring, secretary of the state association, and W m. C. Remp- T he b an k received guests, friends an d cu stom ers d u rin g th e business hours, and th e lobby w as banked w ith flowers sen t b y friends of the in stitu tio n and P ie rre businessm en. A Recognized Collection Service • C o r r e s p o n d e n t b a n k s in a ll parts o f the country facilitate th e s e r v ic e in c o lle c tio n a n d t r a n s f e r o f f u n d s fo r which th is bank is recognized. • Continental Illinois National Bank and Trust Company OF CHICAGO Member Federal Deposit Insurance Corporation Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NEWS • fer of P ark sto n , presiden t, w ere p res e n t and spoke briefly. T here w as no program , th e tim e being sp en t in v isit ing. IN W A S H IN G T O N (C ontinued from page 39) w ith in su red liquidity b u t n o t subject to reg u lar b anking supervision. T he P atm an bill to pro h ib it estab lish m en t of bran ch es by any “financial in stitu tio n ” c h artered or in su red by a F ed eral agency received w arm support from th e Ind ep en d en t B ankers Asso ciation a t its convention in St. Paul. The bill, w hich m ay come up a t th e special session, w ould apply to savings and loan associations as w ell as banks. T he Lee bill to d raft w ealth w ill be w atched closely. I t already has quite a b it of su p p o rt and m ay be passed, b u t probably in a som ew hat less d ras tic form. T ru st b u stin g is likely to becom e less popular for a w hile a t least. G overn m en t plans for coordination of busi ness w ill likely req u ire cooperation not p erm itted a t present. D oubts about th e ability of th e rail roads to m eet em ergency dem ands are causing some concern. F ed eral Loan A d m in istrato r Jesse Jones m ade know n recen tly th a t th e roads are spending $200,000,000 in th e n ex t six m onths for new equipm ent and re pairs. O rders for $125,000,000 of new equipm ent w ere placed recently. Mr. Jones estim ated th a t reserv e equip m en t could be rep aired for from $50,000,000 to $75,000,000. T he sh arp decline in th e pound ste r ling since th e w ar began has th e Ad m in istratio n w orried. S ecretary Morg en th au announced th e tre a su ry is studying th e situ atio n created by the discrepancy betw een th e official and unofficial quotation “w ith a view to com batting it.” H e did n ot disclose w h a t steps m ig h t be taken. Rem inded of em ergency exchange control pow ers he said th e U nited States is practically th e only co u n try left th a t has a free m ark et and declared th a t “it is of great im portance th a t w e keep our m ark ets open.” I t is n o t expected th a t th e stabiliza tion fund w ill be used independently to su p p o rt th e sterling. It seem s m ore likely efforts w ill be m ade to get the B ritish them selves to close th e gap betw een th e tw o quotations. T he Gov ern m e n t has been in com m unication w ith B ritain over th e situ atio n caused by use of th e “blocked” sterlin g to pay for p urchases from n ations outside the em pire. Sellers are paid as usual; the m oney is deposited in a B ritish bank (T u rn to page 66, please) 53 has been to m ake it one of th e m ost hondsom ely appointed banks in this section of th e state. B ank officials staged th e “open house” day to give th e public an op p o rtu n ity to view th e im provem ents. M IN N E S O T A Fifty Years NEW S W IL L IA M D U NCAN, J r . S e c re ta ry M inneapolis A. B. L A T H R O P P re s id e n t St. P a u l Bank Director Dies E. J. S terns, 83 y ears old, p ro m in en t in civic affairs and a leading business m an in H utchinson, died recen tly fol low ing a h e a rt a tta c k a t his home. Mr. S tern s h ad served as p resid en t of b oth th e school board and th e li b ra ry board, an d w as a fo rm er m ayor of H utchinson. A t th e tim e of his d eath he w as a b an k d irecto r and head of tw elve lum ber y ard s in so u th ern M innesota. D inner w as served th e group, after w hich th e rep resen tativ es re tire d to th e d irecto rs’ room at th e F irs t N a tio nal B ank for a business session. Officers w ere elected for th e en su ing year. A. G. Ibeling of D arfu r w as chosen to lead th e line-up as p resi dent, M. T. L aingen of Odin w ill serve as vice president, and M. E. Coltvet of M adelia w ill be scribe and handle financial affairs of th e organization. Dies at Spring Valley Hold "Open House" T he S tate B ank of F a irb a u lt, for m an y y ears p ro m in en tly identified in F a rib a u lt business, in d u strial, develop m en t and civic activities, announced a public ev en t for S aturday, Septem ber 22rd, w h ich com m em orated th e com pletion of a new p ro ject in th e b an k ’s d istin ctiv e record of progress —th e com plete rem odeling and re d ecorating of th e b an k building located on th e co rn er of C entral A venue and T h ird Street. T he observance of th e extensive new im p ro v em en t p ro g ram consisted of “open h o u se” b o th aftern o o n an d eve n ing to th e m an y friends and cus tom ers of th e local b an k in g in s titu tion. Several p ro m in en t b an k ers from n earb y and d ista n t com m unities a t tended th e “open h o u se” and p erso n ally offered th e ir co n g ratu latio n s to th e officers of th e local bank. Named Cashier C. A. L ofgren h as been nam ed cash ier of th e F a rm e rs S tate B ank of Hoff m an to succeed his b ro th er, th e late G. A. Lofgren, according to an a n nou n cem en t of th e b oard of directors. H. J. M alm of Glenwood w as chosen to fill Mr. L o fg ren ’s fo rm er position as a ssista n t cashier. County Election T he a n n u a l g a th e rin g of th e W ato n w an C ounty B an k ers A ssociation w as held last m o n th in St. Jam es w ith all b u t tw o of th e county b an k s re p re sented. H a rry H. Steffens, Spring V alley re sid en t since 1900 and for m ore th a n 30 y ears connected w ith various banks th ere, died suddenly a t his hom e, from a h e a rt attack. He w as 60 y ears old. He w as born in Sum ner tow nship, M arch 12, 1879, and as a young m an w en t to M ontana w here he w as a b ank em ploye before com ing to Spring V alley in 1900. E ig h t y ears ago he re tire d from the b anking business th e re to becom e an ap p raiser for the federal land bank. New Officer T he resignation of George Daley w as accepted by th e board of directors of th e F irs t N ational Bank, P ine City, at th e b o ard m eeting, and R obert E. A nderson w as appointed assistan t cashier, succeeding Mr. Daley Mr. Daley w as appointed village clerk, follow ing th e resignation of C lark P ennington, and assum ed his new duties a t once. Citizens State B ank of B rainerd celebrated its golden a n n iv ersary last m onth. F ifty y ears ago—on Septem ber 16, 1889, an institu tio n , term in g itself th e N o rth ern Pacific State B ank and T ru st Company, opened its doors. Identified w ith th e new en terp rise w ere nam es th a t since have become pro m in en t in B rain erd h isto ry — am ong th em Leon Lum , C. M. P ark er, H. W. Topping and H. W. Ribbel. Mr. P a rk e r w as th e first presid en t of th e in fa n t in stitu tio n and J. M. N evers served as its cashier. T hrough th e in terv en in g y ears the b ank has grow n from a relativ ely tin y b anking house, w hose first statem en t show ed com bined assets a t approxi m ately $100,000, to an in stitu tio n w ith over a m illion and a half in deposits. It has a p resen t capital of $50,000; su r plus of $30,000. Its loans and discounts are w ell over $500,000 T he b an k changed its nam e to the p resen t one in 1906. In 1927, the B rem er in terests took over control of th e b ank and have been a controlling factor in its success and stability since. In South St. Paul Bank Coming to South St. P au l to fill the vacancy in the post of m anager of th e Stock Y ards M ortgage Company, affi liated w ith th e Stock Y ards N ational Bank, left w hen T. A. Valine, Jr., resigned, E d w ard J. B achm an of St. P aul assum ed his new duties recently. Mr. B achm an, for th e p ast tw o years, has been in charge of th e insurance agency connected w ith th e F irs t State B ank of St. P aul and has also had eight y ears of banking experience in th a t city in addition to special tra in ing in in su ran ce work. Remodeled Modernized The F a rm e rs and M erchants State B ank, A ppleton, has com pleted ex ten sive im provem ents in th e ir b an k build ing and equipm ent and th e officers, directors an d staff extended an in v i ta tio n to th e public to a tten d “open h o use” a t th e ban k on S aturday, Sep tem ber 23rd. Im provem ents m ade include th e in stallation of a new front, th e in terio r has been enlarged and com pletely m odernized, new fu rn itu re and equip m en t has been installed and th e re su lt M oorehead’s F irs t N ational B ank has gone “stream lin ed.” R ecently w orkm en finished a re m odeling and m odernization job w hich com pletely altered th e in terio r of th e bank. All old “cages,” behind w hich tellers and clerks have w orked for years, w ere rem oved and replaced w ith “stream lin ed ” counters, providing m ore inform al dealing w ith p atrons and also allow ing m ore efficient busi ness transactions. L ighting w as im proved considerably. Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 54 Twin Cuy News Edm und S. Jones has been elected presid en t of Chicago L ake State B ank, M inneapolis, to fill the vacancy created by th e d eath of M alvern H. M anuel. Gordon E. Larkin w as nam ed vice presid en t to succeed Mr. Jones. Both m en w ill continue as vice presid en ts of M arquette N ational Bank. F ran k J. Gavin, executive vice p re si den t and operatin g head of th e G reat N o rth e rn Railw ay, has been elected a directo r of F irs t N ational B ank of St. Paul. He fills th e vacancy created by Vitally Important to a bank located in a com munity where livestock is a factor is a BANKING CONNECTION In a Livestock Center We Invite Your Account STOCK YARDS NATIONAL BANK SOUTH ST. PAUL, MINNESOTA M ember Federal D eposit Insurance Corporation Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By J A M E S M . S U T H E R L A N D Special Correspondent th e d eath last Ja n u a ry of W. P. K en ney, G reat N o rth ern president. S tan ley M. Gates, St. Paul, has been elected ch airm an of th e M innesota group of the In v estm en t B ankers As sociation of America. O ther officers nam ed are Jam es M. D ain, M inneapolis, vice chairm an; D on ald H. B row n, M inneapolis, secretarytre a su rer, and Cecil A. B urnham , M in neapolis, R obert L. John, M inneapolis, and A tm an A. G reenm an, St. Paul, m em bers of th e executive com m ittee for tw o-year term s. P aul Loudon, M inneapolis, w ill re p re se n t th e M innesota group on th e n a tional board of the I. B. A. He w as born in M ankato, Minn., A pril 25, 1887, and w as a g raduate of A ndover, H arv ard and th e U niversity of M innesota law school. F rom 1912 to 1929 he w as a m em ber of th e D uluth law firm of W ashburn, Bailey & Mitchell. D uring th e W orld W ar he saw ac tion overseas as a captain in th e 351st in fan try , 88th Division. Mr. W ash b u rn w as a d irector of the b ank and its holding com pany, and held office in several affiliates. S urviving are th e wife, a son, his m other, a b ro th e r and th ree sisters. H o norary p allbearers a t th e funeral a t Lakew ood Chapel Sept. 13 w ere L ym an E. W akefield, S. T. M cK night, S. W . W ells, Orren E. Salford and R. B. R athbun of M inneapolis; P h illip L. Ray, John G. Ordway, E d w in W hite and M ilton W. Griggs, St. Paul, and C. R. M cLean, D uluth. Seventy-five m em bers of th e M inne apolis chapter, A m erican In stitu te of B anking, w ere aw arded g raduation certificates at th e c h a p te r’s an n u al com m encem ent d in n er Sept. 19 a t the N icollet Hotel. C om m encem ent address w as deliv ered by W illiam A. Irw in, N ew York, associate educational d irector of the A. I. B. A rthu r W . Johnson, ch ap ter president, w as to astm aster, and Oliver S. P ow ell, first vice presid en t of the M inneapolis F ederal R eserve Bank, p resen ted th e diplom as. V eteran b an k ers are w atching w ith sen tim en tal w istfulness th e dem oli tion of one of M inneapolis’ older b an k ing buildings—th e form er N o rth w est ern B ank building. H om e of th a t b ank and of N orthw est B ancorporation for years, th e building is now falling before th e M arch of Tim e—to become a park in g lot. The b ank and b ank holding com pany several y ears ago abandoned it to move into th e new 16-story N o rth w estern B ank building a block away. Since th e n it has been used by a gov ern m en t agency and for a tim e by a retail store. Abbott McC. W ashburn, 52, vice p resid en t and general counsel of F irs t N ational B ank & T ru st Co., M inne apolis, and F irs t S tate B ank C orpora tion, died Sept. 10 a t A bbott hospital here. He succum bed to a ra re blood ail m en t from w hich he had been suffer ing for th ree years. F loyd W . L arson, form er president and executive secretary of the M inne apolis chapter, A m erican In stitu te of B anking, and now a ssistan t national secretary, w as principal speaker a t the c h a p te r’s m em bership and enrollm ent dinner. Com m ittee chairm en appointed by new ly-elected P resid en t A rth u r W. MINN ESOT A Jo h n so n are: A. J. B erglund, S um ner G. Sinclair, C harles A. Cells, W illiam R. Chapman, C hristian R ies, Edna D. Johnson, Lubin G. B oehm e, A rthur WT. Johnson, John P. K nutson, H. C. T im berlake, F. L. D urand, Clarence L. Sm ith, G. A lice Catlin, G enevieve M. K evin, M ildred V. Olson, Gordon E. Larkin, E v e ly n G. S w anson, F. Mar in er Clark, R. C. R utherford and Ger trude Jacobson. Named President E d m u n d S. Jones has been selected by directors of Chicago Lake State B ank, M inneapolis, as p resid en t to fill th e vacancy created by d eath of M al v e rn M. M anuel, according to R alph W. M anuel, p resid en t of M arquette N ational Bank. G ordon E. L a rk in succeeds Mr. Jones as vice p resid en t of th e Chicago L ake B ank. Both m en w ill continue as vice p resid en ts of M arquette. New Staff Member Mrs. D. E. C rary Mudd, secretary of th e M innesota League of Building, Savings and L oan A ssociations, re cen tly joined th e staff of th e N o rth w estern F ed eral Savings and L oan A ssociation of M inneapolis, as a ssist a n t to Jo h n E. Koch, m anager. She will have charge of new business and public relations. NEWS cause they deal w ith the fundam ental factor of credit.” He com m ented th a t th ere had been a lag in priv ate investm ent, and he w ondered w h eth er b an k ers as a w hole had given sufficient study to the pos sibility of developing new local e n te r prise in th e com m unities th ey serve. Senator O’M ahoney w as introduced by Senator H en rik Shipstead of M in nesota, who spoke in the afternoon on agriculture. Senator Shipstead said th e v ast program of governm ent lending to farm ers has not benefited them b u t m erely “bailed o u t” banks, m ortgage and insurance com panies and o th er lenders. He m ade no sug gestions for rem edying th e situation. All association officers w ere re elected. T hey are M. L. E rickson, of Lake City, president; W. R. Spensley, of H ibbing, vice president; H a rry Lee of Long P rarie, treasu rer, and Ben Dubois of Sauk Centre, secretary. Hold Election A m eeting of th e South W estern M innesota B ankers A ssociation w as held at L uverne last m onth and in- THE " N O R T H W E S T E R N 'S " BO N D D EP A R T M EN T buys and sells U nited States Government, M unici pal and State bonds, and executes orders for the purchase and sale of other securities. This is another of the “N orthwestern’s” services Officers Reelected organized and operated for the purpose of facilitat It is up to business, and not to gov e rn m e n t m ade-w ork program s, to p ro vide em ploym ent for all th e people, Senator Josep h C. O’M ahoney of W y om ing declared last m o n th in St. Paul. He spoke a t th e closing d in n e r of th e te n th an n u a l convention of th e In d ep en d en t B a n k e rs’ A ssociation at L ow ry Hotel. S enator O’M ahoney, ch airm an of th e te m p o rary n atio n al econom ic com m it tee w hich is stu d y in g m onopolies, de clared balancing local needs w ith n a tio n al b u siness is th e c en tral econom ic problem of th e day. “T he achievem ents of business have been g re a t,” he declared, “b u t I am not convinced th e re is n o t y e t u n lim ited o p p o rtu n ity for expansion of business into new fields.” He suggested h ous ing and m an u factu re of lu x u ries as am ong th e possibilities. S tressin g th e necessity for business to w o rk to w ard increasin g th e p u r chasing pow er of th e individual, he declared: “I know of no g roup of A m ericans w ho can co n trib u te m ore to solution of th e problem th a n can ban k ers, be ing the business of correspondent banks. This service is no farther from you than your telephone, typewriter or telegraph station. • S e rv ic e to B a n k ers S in ce 1872 • D epartm en t o f B anks and B ankers W m . N. J o hnson Vice P re sid e n t F. W. Conrad A ssista n t Cashier D. E. C rouley A ssista n t C ashier L. P. G i s v o l d A ssista n t Cashier N o r t h w e s t e r n N a t io n a l B ank and T rust C o m pa n y M a r q u e tte A v e n u e : S ix th to S even th S treet M IN N E A P O L IS , M IN N E S O T A M em ber F e d e ra l D e p o sit In su ra n c e C orp o ratio n Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 56 MINN E S O T A eluded in th e p a rty from P ipestone atten d in g the g ath erin g w ere Mr. and Mrs. E. J. Feldm an, Mr. and Mrs. A. H. Ja n se n and d au g h ter P hyllis, Mr. and Mrs. A rth u r Stillw ell, Mrs. R. E. V ibral and th e M isses E th e l W a te r m an, M ildred B urnison, E lizabeth R einsm ith, A nn W oelber and V ivian Smallfield. Mr. F eldm an, p resid en t of th e a s sociation, presided a t th e business session an d officers for th e new y e a r w ere elected. A. A. A nderson of th e 1863 NEWS L u v ern e N ational B ank w as selected as p resid en t to succeed Mr. Feldm an. E. A. Tim m of B alaton w as elected vice p resid en t and B. W. Lloyd of F ulda secretary and tre a su re r. H ans P eterso n of R u th to n w as elected as one of th e board of directors from P ipestone county to succeed A. C. W alker w hose te rm had expired. Anniversary T he F irs t N ational B ank of M cIn tosh celebrated its fiftieth a n n iv ersary 1939 A Background to Meet Today’s Problems T he accum ulated experience o f T he First N ation al B ank o f Chicago covers seventysix years. D uring that tim e the bank has seen the nation pass through m any business cycles, each w ith its succession o f com pli cated econom ic factors. Each o f these phases in turn has created its ow n special problem s. T o m eet sp ecifically th e req u irem en ts o f business, the D ivisional Organization o f T he First N ation al B ank was developed in 1905. This distinctive feature brings bankers into im m ediate contact w ith officers w h o are specialists in the requirem ents o f correspon dents. T he long and valuable experience of the bank thus becom es im m ediately appli cable to the problem s o f today. The First N ational Bank of Chicago MEMBER FEDERAL DEPO SIT Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN SU RA N CE CO R PO R A T IO N recently, and to com m em orate the event, th e officers and directors held open house. The b an k officers had extended an in v itatio n to th e com m unity to help observe th e day, and the response w as overw helm ing. Over 1,000 people called a t th e bank and reg istered in th e g uest books, and each received a gift from th e in stitu tion. Seven h u n d red fifty adults w ere presen ted w ith souvenir booklets, pen cils and lunch tickets, and 300 children w ere p resen ted candy bars. A m ong those w ho called a t th e b an k w ere resid en ts of th e Canal Zone, W is consin, Ohio, W ashington and South Dakota. Merger M erger of th e tw o S tew artville banks w as effected last m onth w hen th e S tew artville N ational B ank took over th e assets and liabilities of the F irs t State B ank of Stew artville. M. J. Dixon, p resid en t of th e state institu tio n , re tire d from th e banking business and w ill continue as secre ta ry of th e F arm ers E lev ato r Com pany, Inc., an d also w ill continue as agent for insu ran ce com panies. H. N. L enton, cashier, and E. E. Olson, teller, have ta k e n positions w ith the N ational Bank. T he building form erly occupied by th e state bank rem ains th e p ro p erty of stockholders of th e F irs t S tate Bank. T he m erg er gives th e S tew artville N ational B ank a capital of $55,000 and su rp lu s of $12,000. D eposits are about $700,000. Officers are Dr. C. E. F aw cett, president; E. J. Schatz, vice p resi dent; H om er W ooldridge, cashier, and R ein h ard t F ittin g , a ssistan t cashier. y A Returns to National of Detroit A lvan M acauley, Jr., w ho left th e N ational B ank of D etroit in 1937 to ac cept ap p o in tm en t as com m issioner of b an king for th e State of M ichigan, has com pleted his term in th a t ca pacity and has re tu rn e d to th e b an k as an assista n t vice president. Mr. M acauley w ill devote his tim e to correspondent b anking relations. Dividend T he directors of The N o rth ern T ru st Company, Chicago, have declared the 167th q u a rte rly dividend. T he divi dend w as payable October 1, 1939, at th e ra te of $4.50 p er share; payable to stockholders of record as of Septem b er 19th. V 57 B ank of Jam estow n, and w as vice p resid en t of one of its predecessors, th e F a rm e rs and M erchants N ational Bank. NORTH Paying Station DAKO TA NEWS c. c. F R A N K R. SCOTT P re s id e n t F a rg o w attam S e c re ta ry F a rg o Bank Debits F arg o b an k debits in A ugust w ere ah ead of those for th e sam e m o n th of 1938, a tre n d w h ich h as been evident th ro u g h o u t th e y e a r to date, according to th e m o n th ly re p o rt of th e N in th F ed eral R eserve d istrict. D ebits for v ario u s n o rth w e ste rn poin ts follow: N orth D akota A ug. 1939 B ism arck ........... $10,786 1,347 Devils L ak e D ickinson ......... 1,492 F a rg o .................. 17,430 G ra fto n ............. 1,233 G ra n d F o rk s . . . 5,232 1,599 Jam e sto w n 248 Lisbon .................. 795 M andan ............. M inot .................. 3,870 1,014 V alley C ity W a h p eto n ......... 1,193 W illisto n ........... 1,641 The W alsh County S tate Bank, G rafton, w as g ran ted perm ission to establish and operate a paying and receiving statio n at St. Thom as, and th e certificate of au th o rity for such statio n has been issued by th e State B anking Board. J u ly 1939 $12,216 1,374 1,320 17,941 969 5,084 1,610 276 880 3,898 982 986 1,563 A ug. 1938 $ 9,651 1,328 1,010 17,171 1,369 5,940 1,499 278 828 3,715 1,036 1,021 1,495 J u ly 1938 $12,186 1,229 1,028 16,963 1,031 5,333 1,536 246 800 3,771 901 933 1,434 line, b u t is exam ining various p ro posals. A factor w hich he says has influenced his action is th a t he is sub je ct to h ay fever w hich m akes his sum m ers v ery uncom fortable, b u t w hich does n o t b o th er him in some of th e locations th a t he has in m ind. Mr. C unningham has been pro m in e n t in b anking circles in th e state and is a p ast presid en t of th e N o rth Da kota B an k ers’ A ssociation, hav in g held several offices in th a t organization. Dies In Jamestown Counterfeit Losses B anks in th e U nited States sustained a loss of $5,340 th ro u g h acceptance as genuine of 604 co u nterfeit notes in A ugust, Chief F ra n k J. W ilson, of th e U. S. Secret Service, announced to day. T his figure rep resen ts a red u c tion in b ank loss over previous m onths. Chief W ilson has offered to assign agents to banks th ro u g h o u t th e coun try to exhibit specim ens of cu rren tly appearing counterfeits and coach tel lers in th e detection of co u n terfeit is sues. M any banks have arran g ed n ig h t m eetings to enable th e ir tellers to receive special instructions. T he chief also urges banks, as p a rt of th e ir public relations activity, to w arn th e ir depositors ag ain st accept ance of G overnm ent checks from stran g ers w ith o u t full and pro p er identification. “The sam e care”, said Chief W ilson, “should be exercised in cashing a G overnm ent check as is used in negotiating a personal check, as loss is certain if th e check carries a forged endorsem ent.” Louis B. N iem eyer, 72, long prom in en t in business and banking circles in Jam estow n, an d form er county auditor, died recently in a Jam estow n hospital. He h ad been in poor h ealth for ten years. He w as, at his death, vice p resi d en t and general m anager of Beck Pioneer Dies L. O. L ystad, 82, p re sid e n t of th e Clothing Company, w hich he founded E a s t G rand F o rk s F ed eral Savings in 1902 w ith M orris Beck and th e late an d L oan A ssociation and a pioneer Abe Simmons. He w as form er ch airm an of th e resid en t, died recen tly a fte r an illness board of directors of th e N ational of six m onths. Mr. L y stad h ad served 17 y ears as a m em ber of th e school b oard and w as a m em ber of th e city council from 1920 to 1928. H e w as on th e city school board and w as a m em ber of th e city w a te r and lig h t com m ission from 1928 u n til th e tim e of his death. F o r 12 y ears he w as a m em ber of th e Polk county board of com m issioners. Mr. L y stad cam e to G rand F o rk s in 1880 an d to E a st G rand F o rk s in O u t-o f-to w n banks and bankers w ill find here 1889. F o r a n u m b er of y e a rs he w as in th e g rad ing-contracting business. c o m p le te b a n k in g f a c ilit ie s fo r p r o m p t a n d H e did a g re a t deal of w o rk for th e G reat N o rth e rn railroad. eco n o m ica l h a n d lin g o f accounts in C h icago. W e Out-of-Town Banks w o u ld appreciate the op p ortu n ity o f serv in g you. Leaving Williston C larence E. C unningham , for m any y ears a re sid en t of W illiston an d one of th e o rganizers of th e F irs t and Com m ercial N ational B ank, h as a n nounced th e sale of m ost of his stock in th a t in stitu tio n to R. G. R asm ussen and plan s to leave W illiston. Mr. C unningham says he has n o t decided w h e th e r to continue in th e b an k in g business or e n te r som e o th er C it y N a t io n a l AND TRUST 2 0 8 S O U T H COMPANY B a n k of Chicago L A S A L L E S T R E E T (.Member Federal Deposit Insurance Corporation) Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 MONTANA NEWS E T H E L W. W ALKER S e c re ta ry -T rea su re r H elena O. M. JO R G E N S O N P re s id e n t B illings Bank Sells Assets At m eetings held early last m onth, stockholders and directors of th e B ank of Miles City, M ontana, voted to w ith d raw from business in Miles City and accepted an offer by th e F irs t N ational B ank of Miles City to assum e th e de posit liability and pu rch ase certain assets of th e bank. The decision came as th e re su lt of negotiations w hich had been in progress for several days and reduced th e n u m b er of b anks in Miles City from tw o to one. F o r th e tim e being L. R. Gillett, presid en t of th e B ank of Miles City, w ill m ain tain an office in his p resen t q u a rte rs to w ind up th e affairs of th e in stitu tio n . C om m enting on t h e change, Mr. G illett said, “Our decision to w ith d raw from business is th e re su lt of long and careful deliberation on th e p a rt of officers, directors and stockholders. F o r m any y ears it has been our privilege to serve a large n u m b er of loyal custom ers. W ith the assistance of N o rth w est Bancorporation, our p rincipal stockholder since 1929, we have trie d earn estly to give th em and th e te rrito ry in general an efficient and constructive banking service. “W hile th e b ank w as in the stro n g est condition in its history, we recog nized th e reduction in th e volum e of available banking business, w hich has resu lted from unfavorable clim atic conditions in th e recen t past, and th o u g h t it advisable to m ake a favor- • The chap on the other end of the line had cashed a “No Account” check for a man, who used a check from his employer’s book. Because of perfect control in the distribution of its blank check stock, through Safety Numbering, this banker could tell the check-casher to whom the check had originally been given. It led to quick identifica tion of the check-passer and recovery of the money. Safety Numbering is not costly. Tell us how many stock checks you use a year, and we’ll send you an estimate; also our booklet about Safety Numbering. (DCS CHECK PR IN T E R S INC. Lithographers a n d Printers Plants a t K A N SA S C IT Y Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C H IC A G O NEW YORK CLEVELAND ST. PA U L able sale of th e business. W e w ish to express to th e public our sincere ap preciation for th e business we have enjoyed. It is w ith re g re t th a t we term in ate our business contracts w ith our m any loyal friends and patrons. W e are confident th a t th ey w ill be adequately and efficiently served by th e F irs t N ational B ank.” To facilitate th e handling of in creased business, the staff of th e F irst N ational w ill be augm ented by th e ad dition of M. J. F lin n as vice president, form erly cashier of th e B ank of Miles City. T he F irs t N ational B ank is an affili ate of F irs t B ank Stock Corporation, w hich, like N o rth w est B ancorporation, ow ns a controlling in te re st in a n u m ber of banks in th e N in th F ederal R e serve D istrict, including several in M ontana. T otal resources of th e bank at th e opening of business Septem ber 5th w ere $2,216,052 and deposits $1,997,474. Officers of th e b an k are Claude M. Jones, president; H. F. Lee and M. J. F linn, vice presidents; W. H. W illiam s, cashier; and George A. A n derson, a ssistan t cashier. D irectors include M essrs. Jones, Lee and W il liam s and, in addition, P. S. R ichard son and F red W. Woolsey. With Reserve Bank Mr. and Mrs. E a rl J. Sum m ers have gone to Reserve, M ontana, to m ake th e ir home, Mr. Sum m ers having ac cepted a position as assistan t cashier of th e F irs t N ational B ank of th a t town. Since 1927, Sum m ers w as assistan t cashier of th e F arm ers State B ank in Bainville. He later had charge of the Bainville b ran ch of th e A m erican State Bank of W illiston, N orth D akota, for some tim e, and w as clerk for both the tow n of B ainville and th e local school board for several years. Helena Visitors A. H. K ennedy, vice p resid en t of the F irs t B ank Stock C orporation, and G. Sidney H ouston, m anager of th e in v estm en t research d ep artm en t of the F irs t Service C orporation, affiliate of th e form er group, visited F re d Heinecke, vice presid en t of th e F irs t N a tional Bank, and o ther bank officials in H elena. In re fe rrin g to th e w ar situation, Mr. H ouston, w ho is a nationally know n econom ist, stated th a t he did n o t believe th e econom y of 1918 should be accepted as a p a tte rn for c u rre n t tim es. The tw o b ankers, w ho are from M inneapolis, w ere accom panied from B utte by Jam es E. W oodard, p resident of th e M etals B ank and T ru st Com pany of B utte. 59 IO W A to visit w ith Mrs. E bersole’s parents, Mr. and Mrs. W alter R. Buck, at Oak land. K eokuk’s F all C elebration an d S treet F air, S eptem ber 18th to 23rd w as th e usual gay interlude. Main S treet from 3rd to 9th w as “Coney Islan d ” for a week! N EW S Des Moines A . I. B. FRANK W ARNER S e c re ta ry Des M oines C. R. GOSSETT President Sioux City vice president, W. A. K neeland, cash ier, Postville State Bank, and secre I. G. McQueen, cashier of th e F a rm tary -treasu rer, E a rl W elsh, cashier, ers State B ank, R idgew ay, Iowa, and New Albin Savings Bank. secretary of G roup 4 of th e Iow a B an k ers A ssociation, has recen tly re tu rn e d from th e g o v ern m en t’s an n u al Keokuk A . I. B. Miss M arie L. H ayes, assistan t cash N ational Rifle contest held at Camp P erry , Ohio, an d rep o rts h aving had ier S tate C entral Savings B ank and a splendid tim e. Mr. McQueen has A. I. B.er, vacationed in A ugust in the been one of th e crack pistol shots in Dells in W isconsin. E. A. Ebersole, cashier State Cen Iow a for m any years. He is a reserv e officer. He took his young son w ith tra l Savings Bank, and m em ber A. I. him to Camp P e rry for th e boy’s first B. class, w ith Mrs. E bersole attended tim e and if Mr. McQueen has his w ay th e A m erican B ankers A ssociation th e son w ill follow in th e fa th e r’s convention a t Seattle, m aking the trip footsteps w h en it comes to m a rk s by m otor and stopping in California m an sh ip in h an d lin g firearm s. Attends Contest A. I. B. in Des M oines held its an n u al “kick off” d in n er and dance at the W aveland P a rk Club house on Sep tem ber 13th. One h u n d red and fifty w ere present. P resid en t Leo R egan outlined th e plans for th e com ing y ear and Vice P resid en t K enneth Griffith spoke about the educational program . Classes offered th is y ear are N egotiable In stru m en ts for th e p restan d ard course and C redit A d m inistration as the S tandard course. Public speaking and beginners b an king class w ill also be offered. M onday, Septem ber 18, 1939, started the an n u al A. I. B. m em bership drive. Professor: “W hen w a te r becomes ice, w h at g reat change occurs?” Student: “A change in price.” A n Old-Tim er With Ames Bank H elen M ahoney, fo rm erly of F o rt Dodge, w ho has been w ith th e State B anking D ep artm en t for th e p ast ten y ears as se cretary to G rover S. K routh, has resigned h e r position and is now secretary to H. W. Stafford, p resid en t of th e A m es T ru s t and Savings Bank. County Meeting A m eeting of th e A llam akee B an k e rs ’ A ssociation w as held in W aukon on S eptem ber 13th. T he dinner, fol lowed by a business session a t th e W aukon State B ank building, w as a t tended by 20 re p re se n ta tiv es of th e b anks of th e county. A reso lu tio n w as passed at th e business m eeting w h ere by all of th e b an k s of A llam akee county will, a fte r October 1, 1939, change th e ir closing h o u r from four to th re e p. m. I t w as also decided to hold an o th e r m eeting on October 19th, at w hich tim e th e election of officers for the ensuing y e a r w ill tak e place. T he p re se n t officers are: P resident, C. V. N elson, cashier, F a rm e rs and M erchants Savings B ank, W aterville; T he ab o v e p ic tu re p o rtra y s one of th e v e h ic les w h ich a p p e a re d in a P io n e e r D ays c e le b ra tio n h eld th is f a ll in In d ia n o la , Io w a , a n d w as re c e iv e d too la te to a p p e a r in th e S e p te m b e r issue of T h e N o r t h w e s t e r n B a n k e r . T he old c a rria g e is ow ned b y C larence D iehl, v ice p re s id e n t of th e Iow a-D es M oines N a tio n a l B a n k & T ru st C om pany, a n d w as ta k e n fro m D es M oines to In d ia n o la to h a v e a p lace in th e p a ra d e . UNITED STATES C H EC K B O O K C O M P A N Y OMAHA, • B A NK E R S NEBRASKA S U P P L I E S • Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INSTITUTIONS THAT MAKE Above: — T he C edar R apids p lan t of Quaker Oats, th e largest oats processing plan t in th e world. (Air P hoto— C ourtsey Des M oines Register and T ribune.) • Lower L eft:-— R o b ert S tu art, founder of th e Cedar R apids plan t who played an im portant p a rt in the developm ent of both the in d ustry and the Quaker O ats Company. • Lower Right: — The S tu a rt and Douglas M ill in 1873, forerunner of th e present great plant. BANKERS 6th and L ocust Streets https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DOMINATING A Great Food Industry Iowa occupies an im portant place in the feeding of the nation and th e world. It is entirely fitting, then, th a t it should have played an im p o rtan t p a rt in th e founding of a great branch of the food industry, and th a t it should be the home of the greatest p lan t in the world producing th a t food. T he Q uaker O ats C om pany p lan t in C edar R apids is the largest p lan t processing oats for hum an consum ption in the world. It is th e outw ard symbol of an industry which began in 1854 in Akron, Ohio, where F erd inand Schum acher began hand grinding oats in th e back room of his grocery store. In 1873, Jo h n and R obert S tuart, Scotch father and son who had been milling oats in a tin y mill in Oxford C ounty, C anada, sought wider fields for their endeavors and settled upon C edar R apids as the site. T hey acquired a building and began instal lation of an oats mill. Shortly after, they were joined by another Scotsm an, George Douglas, already a resident of C edar Rapids. T he S tu a rt and Douglas N o rth S tar Mill was th e s ta rt of w hat is now th e largest single oats processing mill in the world. T h e) years th a t followed were harrow ing ones for the entire oats milling industry. It had th e task of educating the conglomer ate population of a rapidly growing nation to th e eating of oatm eal. And it had the internal troubles which accom pany m ush room industrial grow th—oversupply, uncer tain quality, ruinous price com petition. Q uaker O ats C om pany was the outgrow th of early attem p ts w ithin the industry to stabilize the tu rb u len t infant, led by several of th e larger organizations, prom inent among them the S tu a rt and Douglas com pany. 1891 saw the founding of the Am erican Cereal C om pany by m erger of several of the more im portant companies. Im m edi ately steps were taken to consolidate oper ations, and by 1893, C edar R apids and Akron, Ohio, had become th e centers of operation. T he Quaker O ats C om pany was formed in 1901. R obert S tu a rt was treas urer of both com panies and served Quaker O ats actively, until his death in 1926. T he Q uaker O ats C om pany now has plants scattered over the entire country and in m any foreign countries. T here are few cereal products it does not m anufacture B ut Iowa w ith the great p lan t in C edar R apids and another in F o rt Dodge, has played an im portant p a rt in building this great organization. T he nam es of Iowans—S tu a rt and Douglas — have played a great p a rt in the founding of an industry and in the developm ent of the largest single u n it in it. T oday those nam es are prom i nent in the roster of officers. Jo h n S tu a rt and R. Douglas S tuart, sons of R o b ert S tuart, are president and first vice-presi dent respectively, and D. B. Douglas is vice president in charge of advertising. A lthough its headquarters have been o u t side of the sta te since the first of this century, Quaker O ats Com pany, w ith its roots deep in the agricultural and industrial develop m ent of the sta te is certainly one of the “ Institutions th a t M ake Iowa.” Quaker O ats C om pany is the result of years of hard work and planning in the develop m ent of a new industry. B ankers T ru st Com pany, too, is the result of years of planning to develop a new conception of banking service. How well this end has been accomplished is ap p aren t in the fact th a t in little m ore th a n 20 years, B ankers T ru st has become one of Iow a’s im p o rtan t banks, as evidenced by an ever-growing list of correspondent banks over th e state. B U S T COMPANY Member Federal Deposit Insurance Corporation Member Federal Deserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des M oines 62 • Rotary Speaker R obert E. Lee H ill, public in te re st d irecto r of th e F ed eral H om e Loan B ank at Des M oines and a p ast p resi den t of R o tary In tern atio n al, spoke on “Our F ed eral Hom e L oan B ank S ystem ” a t a luncheon of th e R otary Club in Dubuque. He told of the b an k in g system w hich w as originally set up th ro u g h a fed eral ap p ro p riatio n b u t is now on a self-supporting basis. It has financed thousan d s of hom es th ro u g h o u t th e country. H. R. H anger, se cretary and active I O W A N EW S m an ag er of th e D ubuque B uilding and Loan A ssociation, m ade arran g em en ts for Mr. H ill’s appearance. Fifth Birthday On Septem ber 30th th e H om e State Bank, Jefferson, w as host a t a public b irth d a y an n iv ersary party. The ev en t celebrated the 5th an n iv ersary of th e establishm ent of th e b ank in Jefferson. The e n te rta in m e n t was held a t the arm o ry w here a double-feature m otion p ictu re w as show n an d light re fre sh m en ts served. ★ |f HEADQUARTERS for jj N O R T H E A S T E R N IOW A BAN KERS V ★ The advantages of our quick, efficient service and com plete facilities make this bank your logical channel for your Northeastern Iowa business. ★ The National Bank of Waterloo MEMBER . . Federal Reserve System Federal Deposit Insurance Corporation ★ Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • With W alford Bank R obert S. Nelson, of W aterville, w as recently accepted by th e F arm ers Savings B ank of W alford, to fill the position of a ssistan t cashier. Robert S. is a son of C. V. Nelson, cashier of F arm ers and M erchants Savings Bank, W aterville. Story County A . I. B. The Story county study group of the A m erican In stitu te of B anking m et recently in Ames to elect th e follow ing officers for th is year: G. R. Alley, Ames T ru st and Sav ings Bank, president; G ilbert H enry, N evada N ational Bank, vice president; George Sherwood, College Savings Bank, secretary -treasu rer; F red Klein, Union Story T ru st and Savings Bank, and W. H. Brow n, Story County State Bank, Story City, m em bers of the board of governors. T he m eeting w as preceded by a dinner, w ith Dale Sm ith, assistan t councilm an for th e A. I. B. in Ioka, as guest speaker. N ew by-laws and articles of organ ization to recen t req u irem en ts of the national organiaztion w e r e also adopted. Tow ns included in th e Story county group are N evada, Ames, Story City, Z earing and Roland. Classes w ill begin for th e group October 4th, w hen th ey w ill take up the stu d y of econom ics u n d er th e su pervision of Prof. W illiam H. Schrampfer, Iow a S tate College. These classes will m eet one evening a w eek, for two hours each m eeting th ro u g h o u t the w inter. A different subject p erta in ing to banking is selected each year. S chram pfer has ta u g h t these courses for th e p ast tw o years. Bates Named President D. W. Bates, Iow a su p erin ten d en t of banks, w as chosen presid en t of the N ational A ssociation of B ank Super visors at its recen t an n u al convention in Salt Lake City. J. D. H ospelhorn of M aryland be came first vice presid en t succeeding Bates. O thers elected w ere I. A. J. L aw res of New York, secretary, and E. A. W ayne of South Carolina, tre a s urer. Resigns E d Spengler has resigned as an active officer of th e M elvin Savings B ank and has been elected president of th e O cheyedan Savings Bank. Mr. Spengler has been connected w ith th e M elvin b an k for m ore th an 23 years. H. W. Glade w ill continue as vice presid en t a t O cheyedan and 63 • R. G. R hodes w ill continue as cashier. W. D. S h u ttle w o rth is re tirin g from active business. A dolph K nock w ill continue as p re si den t and T hom as E. Benz as cashier of th e M elvin B ank. B oth b an k s are m em bers of th e F ed eral D eposit In su ran ce Corporation. Dies at Boone C harles Buech, 63, for 20 y ears a cash ier a t th e old M erchants N ational B ank in C linton, died recen tly in his farm hom e n e a r Boone. F u n e ra l se rv ices w ere held in Boone. I O W A N EW S • com prises th e holdings of T. J. Hysham , C. T. Gadd and o thers w ho will re tire as stockholders and directors of th e institution. C oincident w ith th e announcem ent, Mr. H ysham , long th e larg est stock holder in the F irs t N ational, said th a t th e sale w as consum m ated in order th a t he m ight be relieved of business responsibilities owing to th e state of his health. Consolidation of th e H oughton State B ank and th e F irs t N ational B ank is u n d er way, officials said. Combined deposits of the tw o in stitu tio n s w ill propably exceed $2,000,000, afte r final consolidation has been m ade w ith in the next few days. Assistant Cashier C. M. Stenberg of Genoa, N ebraska, has sta rte d w ork at th e Odebolt State B ank as a ssistan t cashier, succeeding W alter R. W adsley, w ho resigned re cently to become clerk of th e d istrict court. Before com ing to Odebolt, Mr. Sten- Hours Changed N ew b an k in g h o u rs have been estab lished by th e A lden office of th e Iow a F alls S tate Bank. H ereto fo re th e b an k has been opening at 10 o’clock and closing a t 3 o’clock, b u t now w ill open a t 9:30 in th e forenoon and close a t 2:30 in th e afternoon. The change is m ade to facilitate com pliance w ith th e federal w ages and ho u rs law w hich w as passed abo u t a y e a r ago, forc ing a red u ctio n in w o rk in g hours. Ralph Bunce Honored R alph Bunce, fo rm erly of W ash ington, and now connected w ith th e Iow a b an k in g d e p a rtm e n t as d eputy su p erin ten d en t, w as recen tly honored n atio n ally by election to th e p resi dency of th e N ational A ssociation of Sm all L oan S upervisors. The national m eeting w as held in New Jersey. Banker Talks M em bers of th e Sidney C om m unity Club w ere in te re stin g ly en te rta in e d recen tly w h en K. G. K alde of th e S tate Savings B ank of Council Bluffs gave a sh o rt ta lk on th e b an k in g ques tion in general. The ev en in g ’s p ro gram w as in th e h an d s of J. H. P u ll m an, local ban k er, w ho b ro u g h t Mr. K alde for th e evening. IN S IO U X C IT Y - ■■ Sioux City enjoys the natural advantages of an excellent location in a great farm and marketing area. In the center of this area, the First National Bank is equipped to serve you quickly and accurately. W e cordially invite the accounts of bankers who wish dependable service in Sioux City. Consolidation T he sale of co n trolling in te re st in th e F irs t N ational B ank, Red Oak, to H. C. H oughton, Jr., and associates in th e H oug h to n S tate B ank, w as a n nounced recently. T he sale involves 520 sh ares of th e I, 000 sh ares of th e capital stock of th e F irs t N ational B ank and largely W ANTED—Substantial interest or control of Iowa bank with $25,000 to $50,000 capital. ABC, c/o North western Banker. O F F IC E R S J . R. G R A N IN G A s s is ta n t C ash ie r E. A. J O H N S O N A ss is ta n t C ash ie r J. P. H A IN E R J. T. G RA N T E x e c u tiv e V ice P re s id e n t A ss is ta n t C ash ier F R IT Z F R IT Z S O N , V ice P re s id e n t & C ashier A. S. H A N F O R D P re s id e n t Member Federal Deposit Insurance Corporation Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 64 • berg w as a ssista n t cashier of th e F irs t N ational B ank a t Genoa. He w as em ployed a t th is b an k for 23 years, w ith th e exception of 18 m o n th s in W orld W ar service, 12 m onths of w hich he spent in F rance. Office Manager Jam es S. H u n t of M anchester has been nam ed m an ag er of th e G reeley office of th e H om e Savings B ank, and assum ed his duties on S eptem ber 8th. Mr. H u n t has been engaged in th e in suran ce b u siness and before com ing to M anchester w as in charge of th e I O W A N E W S b an k a t Dundee. Mr. H u n t has a wide acquaintance over th e county an d is w ell qualified for th e duties w hich he has assum ed in th e G reeley Bank. Mr. H u n t succeeds Jam es H enry, w ho has been in charge of th e b an k for some tim e. Office at Colo T he R. W. B ro u h ard building at Colo, form erly used as a garage, has been rem odeled and w ill be used as an office of th e F irs t S tate B ank of State Center. B anking h o u rs w ill be from 10 a. m. to 12 noon and 12:30 to Pioneer H ybrid S eed C orn P io n e e r H y b r id S e e d C o rn w a s p la n t e d b y m o re th a n 1 4 0 ,0 0 0 b e lt P IO N EER fa rm e rs in H I-B R ED 1939. CORN COM PANY DES MOINES. IOWA G A R S T A N D T H O M A S H Y B R ID C O R N Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis With Pomeroy Bank Miss Carol M itchell of W essington, South D akota, is th e new sten o g rap h er in th e Pom eroy S tate Bank, tak in g th e position left vacan t by th e resignation of Miss Jessie P atterso n , w ho recently w as m arried. New Schedule T he Kellogg Savings B ank is open ing a t 9 a. m. and closing at 3 p. m. u n d er a new schedule of hours w hich becam e effective Septem ber 5th. The new schedule is in accordance w ith th e wage and h o u r law w hich w ill become effective October 1st, officials have explained. P reviously th e b an k opened for b u si ness a t 8 a. m. T he board of directors of th e Iowa S tate B ank and T ru st Company, Fairfield, has announced th e election of R alph E a stb u rn as executive vice p resid en t of th e in stitu tio n . Mr. E a stb u rn is w ell know n to the local com m unity having been on th e staff of th e S tate D epartm ent of B ank ing for several y ears w ith his office and h e ad q u arters in Fairfield. H e is a n ative Iow an, having been born and raised in Sigourney. P rio r to his being called to th e staff of th e S tate D epartm ent, Mr. E a stb u rn w as an officer of banks in D elta and in C harles City in th is state. He w as also for a period an exam iner w ith th e F ed eral D eposit In su ran ce Cor poration. Annual Meeting All officers and directors w ere re elected a t th e an n u al m eeting of stock holders of th e Peoples S tate Bank, M issouri Valley. The officials are Dr. J. L. Tam isiea, president; D. A. Schw ertley, vice president; J. A. K ovar, cashier; D. F. Schw ertley, as sista n t cashier, and Dr. Tam isiea, D. A. Schw ertley, F. E. E gan, Miss K ath erine S chw ertley and J. A. K ovar, di rectors. Elect Officers • • * Coon Rapids, Iowa 2 p. m. and on S aturdays from 10 a. m. to 12 noon. Eastburn Elected f ir s t Commercial Producer of co rn • COM PANY All of th e old officers and directors of th e C lutier S tate B ank w ere re elected a t th e an n u al m eeting of the stockholders. The directors are J. P. Novak, Jo h n H olst, L orenz Lorenzen, Jo h n W. R oubinek and P au l Kouba. Mr. N ovak continues as president; Jo h n H olst, vice president; A. H. 65 • IOWA F isch er, cashier; and H a rry Ziskovsky, a ssista n t cashier. A dividend of 4 p er cent to th e stockholders w as declared by th e di rectors. Convalescing P au l C. A ckley, p resid en t of th e F irs t B ank and T ru st Com pany, Ot tum w a, w ho w as in ju re d in an auto accident recently, is g reatly im proved and left th e St. Joseph H ospital for his home, w h ere he now is convales cing. H e is not y et able to receive friends and it w ill be some little tim e before he w ill be able to re tu rn to his post a t th e bank. NEWS • Onslow Meeting A nnual m eeting of th e Onslow Sav ings B ank w as held in th e b ank rooms. N. C. H olst w as reelected president. O ther officers nam ed are C. M. Holst, vice president; George H. Paulsen, cashier; M. C. Ingw ersen, a ssistan t cashier; L. M. P etersen, bookkeeper. T he directors rem ain th e same. The usu al dividend w as declared. Elected President R aym ond B. McConlogue of Lisbon, w ho has been vice presid en t of the Lisbon B ank and T ru st Com pany since Jan u ary , 1936, w as elected p resident a t th e reg u lar m eeting of th e board of directors held last m onth. H e w ill fill th e office left vacan t by th e death of Jo h n A u racher w ho w as connected w ith th e Lisbon b an k for m ore th a n 53 years. Director Resigns N. W. In g h ram has resigned as a m em ber of th e board of directors of th e F irs t N ational Bank, Denison. In g h ram has served as a m em ber A ccepts Position T he L iverm ore S tate B ank, w hich opened ab o u t tw o y ears ago, has added m ore help to its force. R ichard T hul of St. Joe, son of Mr. and Mrs. Jo h n T hul, has accepted th e position and en tered upon his new duties. FO R 71 Y EA RS The Robert Fishbaugh Married Miss Z oanna Field, elder d au g h ter of Mr. and Mrs. F ra n k Field, and R obert F ish b au g h , you n g est son of Mr. and Mrs. E a rl C. F ish b au g h , Sr., w ere m arried in S henandoah recently. R obert F ish b au g h is a g rad u ate of th e S henandoah H igh School. He a t tended tw o y ears a t th e Ju n io r College a t Red Oak, and sum m er school a t th e U n iv ersity of C alifornia at B erkeley and com pleted his education a t the U n iv ersity of N ebraska. He is associated w ith his fa th e r in th e S ecurity T ru st and Savings B ank w hich w as established by his g ra n d fath er, th e late C. W. F ishbaugh, thirty-one y e a r ago. Bert Pollock Dies W. A. “B e rt” Pollock, 74, long-tim e resid en t of Zearing, died early last m o n th on a U nion Pacific tra in en ro u te to his hom e a t G lendale, Cali fornia, from Zearing, w h ere he h ad sp en t about th re e m onths. B e rt Pollock w as one of th e th re e sons of Mr. an d Mrs. T. J. Pollock w ho cam e to Z earing from Iow a F alls about 50 y ears ago an d engaged in th e m e r cantile and b ank in g business. M a in E n t r a n c e , U n io n S t o c k Y a r d s , C h ica g o » L l V E S T O C K N A T IO N A L is located inside C hicago’s g re at U nion Stock Y ards — next door to the Y ard s p ack ing houses, com m ission m en, shippers, and ra il and m ail d istrib u tio n points. Isn ’t it logical that, d u rin g its 71 years here, Live Stock N atio n al should have acq u ired a unique and specialized know ledge of a g ric u ltu ra l needs? Isn ’t it logical that, throughout this tim e, n ea rly 500 other a g ric u ltu ra l banks have selected Live Stock N a tio n al as th eir Chicago co rre spondent? A nd isn 't it logical th at if you are interested in a g ric u ltu re, you too w ill find profit in Live Stock N a tio n a l’s fast and experienced services? Y our in q u iry is co rd ia lly invited. L iv e S t o c k B a n k of Chicago W A N T E D ------------------------$10,000 a Year Men Nations — who understand banking — to sell B E T T E R H oldup P rotection for L E S S M oney, to Suburban and Rural Banks. W rite to J. B. LINDL, Miller Block, Milwaukee, Wis- Bank at the Yards <,<• UNION S T O C K YA RD S MEMBER F EDERAL DEP OS I T N S U R A N C E C O R P O R A T Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 66 • since F eb ru ary , 1925, b u t ow ing to his age and th e difficulty of g ettin g in to board m eetings, especially in th e w inter, he found it n ecessary to re sign. Floyd E. Page, atto rn ey , has been appointed to th e board for th e balance of In g h ra m ’s term . Back to Iowa F ra n k B. gaged in the enport, and in the sales Y etter, for 25 y ears en ban k in g business in Dav for th e last th re e y ears d e p a rtm e n t of a leading I O W A N E W S • Los A ngeles in v estm en t house, re tu rn e d from th e w est recently w ith Mrs. Y etter to become associated w ith A. J. F aerber, head of th e B ureau of A nalysis in D avenport. “C alifornia is a g reat state, b u t Iowa is a b e tter one,” Mr. Y etter said upon his re tu rn . “I am overjoyed at being back in m y hom e state, am ong m y friends in D avenport.” of th e F irs t F ed eral State Bank. Dr. Carson has been a m em ber of th e board of directors several years. G rant M cPherrin, p resident of the bank, said th e second vice presidency w as a new ly created office. Vice President w here it rem ains u n til au th o rities p e r m it conversion into foreign currency. U nder th e trip a rtite m o n etary agree m en t am ong G reat B ritain, F ran ce and th e U nited States th e ad h eren ts agreed to inform one an o th er of any m onetary changes. Dr. A. Carson, physician, of Des Moines, w as nam ed a vice p resid en t IN W A S H IN G T O N (C ontinued from page 52) Idle Men and Machines T h e character of a bank is reflected in the character of its custom ers. C e n tra l H a n o v e r n u m b e rs a m o n g its c o rre sp o n d e n ts a representative list of the na tio n ’s old est and stro n g est banks and trust companies. C e n t r a l H a n o v e r BANK A N D TR U ST CO M PAN Y NEW YORK M EM BER FED ERA L D EP O S IT Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN S U R A N C E C O R P O R A T IO N A n in q u iry into “th e stru c tu re of the A m erican econom y” by th e N ational R esources Com m ittee revealed th a t idle m en and m achines have cost the N ation $200,000,000,000 du rin g th e de pression. A rem edy suggested by the com m ittee’s rep o rt w as a general rise in th e incom e of all th e N ation’s peo ple. W h at ex p erim ent and spending have failed to do, possibly th e w ar will accom plish. Now th a t Congress is back on the job m any observers believe th a t it will rem ain for quite a w hile. Senator Clark (D em ocrat, M issouri), critic of th e New Deal foreign policies, said he hoped “Congress rem ains in session as long as th e em ergency exists.” “We w ill certain ly have enough w ork to keep us here continuously,” declared Senator Borah, “b ut w h eth er Congress w ill desire to stay here is an o th er question.” W hile differences of opinion over how to keep A m erica out of w ar are loudly stated and old political groups are split, everyone seem s u n ited on th e m ain objective. The board of di rectors of th e U nited States Cham ber of Commerce has urged Congress to em phasize its d eterm in atio n to keep th e U nited States out of w ar unless it is attacked. “At a tim e w hen w ar raises in the m inds of all of our people th e danger of our own involvem ent in its blood shed and destru ctio n th e C ham ber of Com m erce of th e U nited States directs public a tten tio n to its established posi tion in su p p o rt of all efforts for the p reserv atio n of peace,” th e board said. I t added th a t an A m erica a t peace w ill endure as th e g reat stronghold of re p resen tativ e dem ocratic governm ent and as such could play “a p o ten t p a rt in th e solution of w orld problem s th a t w ill follow in the w ake of th e w ar.” 67 Trust Conference Program A sym posium on tr u s t in v estm en ts w ill featu re th e T e n th M id-Continent T ru s t C onference of th e A m erican B an k ers A ssociation, to be held a t th e Stevens H otel in Chicago, on October 26th an d 27th, according to th e p ro gram for th e conference announced by Sam uel C. W augh, p resid en t of the T ru s t D ivision of th e A. B. A. and executive vice p resid en t and tr u s t offi cer of th e F irs t T ru st Com pany, L in coln, N ebraska. The role of g o v ern m en t bonds, m u n i cipal bonds, co rporate first m ortgage bonds, d eb en tu re bonds, real estate m ortgages, p re fe rred stocks, and com m on stocks in tru st-in v e stm e n t p o rt folios w ill be covered by experienced tru st-d e p a rtm e n t in v estm en t officers p articip atin g in th e sym posium w hich w ill be held on F rid a y m orning, Oc to b er 27th. F ollow ing a p ap er on “Some P roblem s in T ru s t L aw s,” given by P ro fesso r George G. B ogert of th e U n iv ersity of Chicago L aw School a t th e concluding session F rid a y a fte r noon, October 27th, th e re w ill be a question-box period. T he p ro g ram has been developed to provide discussions of practical in te r est to th e executives of th e sm aller an d average sized tr u s t in stitu tio n s th ro u g h o u t th e te rrito ry , Mr. W augh stated. A b an q u e t w ill be held on th e eve ning of T h u rsd ay , October 26th, and w ill be addressed by E rn e s t E. N orris, p resid en t of th e S o u th ern R ailw ay System , of W ashington, D. C. The conference te rrito ry includes A rkansas, Illinois, Indiana, Iowa, K ansas, M ichigan, M innesota, Mis souri, N ebraska, N o rth D akota, Ohio, Oklahom a, South D akota, Texas, and W isconsin. The p ro g ram for th e conference is as follows: T hu rsd ay , October 26th M orning P resid in g —Carl W. F en n in g er, vice president, tr u s t division, A m erican B ankers A ssociation, and vice p resi dent, P ro v id e n t T ru s t Com pany, P h il adelphia, P ennsylvania. O pening R em ark s— Lew is L. M cA rthur, Jr., president, C orporate F id u ciaries A ssociation of Chicago, and vice president, The N o rth e rn T ru st Com pany, Chicago, Illinois. G reetings from A m erican B ankers As sociation— YOUR STATE BANKERS ASSO CIATIO N O FFICIA L SA FE, V A U L T AN D TIMELOCK EXPERTS F. E. DAVENPORT & CO. OMAHA — in S t . L o u i s In correspondent bank relationships, the personal element has become an increasingly important fac tor. The maintenance of close personal contacts with the bankers we serve has been our p o lic y , "through the years/' FIRST NATIONAL BANK IN ST. LO U IS Broadway • Locust • Olive MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Close Contact with the Majority of Michigan’s Important Industries ☆ N A T IO N A L B A N K OF D E T R O IT DETROIT, MI C H I G A N Member Federal Deposit Insurance Corporation Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 68 • IOWA R obert M. H anes, president, A m er ican B an k ers A ssociation, and p resi dent, W achovia B ank and T ru s t Com pany, W inston-Salem , N o rth Carolina. G reetings from tr u s t division— Roland E. Clark, president, tr u s t di vision of th e A m erican B an k ers A sso ciation, and vice president, N ational B ank of Commerce, P o rtlan d , M aine. NEWS • Public relatio n s— Gw ilym A. Price, chairm an, com m it tee on tru s t inform ation, tru s t di vision, A m erican B ankers A ssociation, and vice presid en t in charge of tru sts, P eoples-P ittsburgh T ru st Company, P ittsb u rg h , P ennsylvania. A fternoon P residing—H. E. E m erson, presi- For all banks which have business in Clinton that can be aided by cooperative, prompt and efficient service, we offer the facilities of the City National Bank SINCE 1870 F riday, October 27th M orning The City National bank CLINTON, IOWA M em ber Federal D ep o sit Insurance Corporation “ S A F E -T -S T A C K ” L O C K S A LL S T E E L ST O R A G E F IL E S TO G ET H ER S in g le d ra w ers of S A FE -T -ST A C K S te e l S to r a g e F ile s sta c k o n e o n th e o th e r to sa v e s p a c e a n d e lim in a t e s h e l v i n g b u t in a d d i tio n to th is t h e y lo c k s e c u r e ly v e r t ic a lly a n d h o r iz o n ta lly . T h e in g e n io u s SAFE-TST A C K lo c k in g k e y g o e s in to p la c e in sta n tly w ith o u t to o ls , b o lts or r iv e ts . N o d a n g e r of a lo a d e d d ra w er t ip p in g , f a llin g or sh iftin g . F ile s of v a r y in g s iz e s sta c k an d lo c k w ith t h is e x c l u s i v e fea tu re . SA FE -T -ST A C K r e c o r d sto r a g e f ile s w e r e d e s ig n e d b y a b a n k e r . T h e y are m a d e of h e a v y w e ig h t, w e ld e d s t e e l in s i z e s to fit every form . T h e y c o s t l e s s th a n ca rd b o a rd b o x e s a n d s h e lv in g . A s k h o w w e ca n s o lv e your re c o r d sto r a g e p r o b le m . E xclusive D istributors for Io w a KOCH BROTHERS THE STEEL STORAGE FILE CO. M ain Office a n d F acto ry 2216-18 W est 63rd S treet CLEVELAND, OHIO Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis dent, tru s t division, Illinois B ankers A ssociation, and tru s t officer, F irs t B ank and T ru st Company, Cairo, Il linois. T ru st in stru m e n ts — Some im p o rtan t Lessons from th e depression— A rth u r F. Young, vice p resid en t and tru s t officer, T he N ational City B ank of Cleveland, Cleveland, Ohio. C ooperation—N ot com petition— C harles J. Zim m erm an, president, N ational A ssociation of Life U nder w riters, Chicago, Illinois. M easuring tru s t fees in term s of serv ice— W illiam A. Read, vice president, C entral H anover B ank and T ru st Com pany, New Y ork City, New York. A nnual B anquet P residing—Lew is L. M cA rthur, Jr., president, C orporate F iduciaries Asso ciation of Chicago. A ddress—E rn e s t E. N orris, p resi dent, S outhern R ailw ay System , W ash ington, D. C. PRinTERS - B00 HBMDER5 - OFFICE OUTFITTERS STRTIOnERS - BUSInESS mflCHIIlES GRfl fiD HVEf l UE /939- O u /i50ÌÓ/f AT FOURTH Sym posium on T ru st In v estm en ts P residing—Jo h n E. B lunt, form er vice president, C ontinental Illinois N a tional B ank and T ru st Company, Chi cago, Illinois. The role of g overnm ent bonds in the in v estm en t of tru s t funds— M ilton R. Stahl, vice president, Mis sissippi V alley T ru st Company, St. Louis, M issouri. W hy should p referred stocks be con sidered u n d er p resen t conditions? M elvin J. R oberts, a ssistan t tru s t officer, Colorado N ational Bank, Den ver, Colorado. W hy p u rchase m unicipal bonds for tru s t accounts?— Oscar L. B uhr, vice president, De tro it T ru st Company, D etroit, M ichi gan. C orporate first m ortgage bonds versus d eb en tu re bonds— Roy M. Huff, tru s t officer, T he F irst N ational B ank an d T ru st Company, Tulsa, Oklahoma. Common stocks as tru s t in v estm en ts— Leon M. L ittle, vice president, The N ew E n g lan d T ru st Company, Boston, M assachusetts. Real estate m ortgages as we know th em — Clarence E. K arn, vice president, T he C entral W isconsin T ru st Com pany, M adison, W isconsin. A fternoon Open F o ru m P residing—Sam uel C. W augh, past president, tru s t division, A m erican B ankers A ssociation, and executive vice p resid en t and tru s t officer, The 69 • IOWA F irs t T ru s t Com pany, Lincoln, N e braska. S tan d ard izatio n of tr u s t policies— G ilbert T. S tephenson, director, tr u s t research d ep artm en t, T he G raduate School of B anking, A m erican B an k ers A ssociation, N ew Y ork City, N ew York. Some problem s in tr u s t law — George G. Bogert, Jam es P a rk e r H all p rofessor of law, U n iv ersity of Chicago, Chicago, Illinois. Question-box period. L. A . Meyer Dies L. A. M eyer, 86, died a t his hom e in Ossian recently. In 1880, to g eth er w ith M. J. C arter, he established th e Ossian bank, w hich la te r becam e th e Ossian S tate B ank. H e re tire d from the b an k in g b u siness in 1927. NEWS • ing a new incom e th a t should pay for th e rem odeling in a few years. The en tire fro n t of th e Occidental building w as rebuilt, and now uses five new plate glass w indow s on th e E ig h t een th stre e t and six ceiling-high glass brick w indow s on H arn ey street. The e x terio r finish is in concrete stucco. V enetian blinds of spring steel are over all plate windows. T he en tran ce tre a tm e n t is m ost u n usual, being convex, w ith tw o doors set in a t an angle. Above th e doors is a surface-lighted nam e plate w ith raised bronze letters. E n tra n c e is m ade th ro u g h a v esti bule into th e circular lobby. Opposite th e en tran ce are th ree te lle rs’ count ers, a d istinct d ep artu re from old fash ioned grilled or frosted glass cages. Two “islan d s” in th e lobby provide check desks and leath er upholstered seats, in colors to harm onize w ith the general in te rio r decorations. Floor covering is m arbleized linoleum . The ceiling has been low ered th ree feet, and now uses acoustically treated panels to deaden sound. T w enty-three in d irect lighting fixtures provide am ple light for every employe. Also in th e ceiling are eight o rn am ental o u t lets used in th e v en tilatin g system . A round th e lobby are desks of offi cers and em ployes w ho have daily con ta c t w ith th e public. N orth of th e lobby are the p riv ate offices of th e presid en t and vice presid en t and th e directors room. T hey are finished in W oodbury Officers W. M. McDonald, cashier of the Sioux V alley Savings B ank a t Smithland, w as nam ed p resid en t of the W oodbury C ounty B anking associa tio n a t a m eeting in Sioux City. H. N. M cM aster, cashier of th e Corn Belt S tate B ank a t C orrectionville, w as elected vice p resid en t, and H en ry W. Bush, a ssista n t cashier of th e F a rm ers Savings B ank a t P ierson, w as re elected secretary -treasu rer. Clearinqs Up B ank clearings so fa r th is y e a r are alm ost $9,000,000 in excess of th e total a t th e co rresponding tim e last year, according to a re p o rt issued by th e Sioux City C learing H ouse association. C learings for th e first six m o n th s of th e y e a r hav e to taled $89,677,220.01. At th e like tim e a y e a r ago th e to tal w as $80,936,213.42. J u n e ’s clearings to taled $15,230,443.44 as com pared w ith $13,936,949.85 last June. New Business Home T he O ccidental B uilding and L oan A ssociation of Omaha, celeb ratin g its 50th a n n iv e rsa ry th is year, recen tly opened a new ly m odernized business hom e th a t com pares favorably w ith an y b an k in g room in th e country. V isitors to th e N eb rask a B an k ers Con ven tio n are cordially in v ited to inspect th e new q u a rte rs a t E ig h te e n th and H arn ey streets, tw o blocks so u th of H otel F ontenelle. Increased efficiency in th e new offices m ade it possible for th e Occi den tal to reduce its occupied space by 35 p er cent. T h ree large room s w ere m ade available for ren tal, th u s pro v id E X T E N SIV E FACILITIES FOR C O R R E SPO N D E N T S As The Northern Trust Company embarks upon its second half century of service, many more banks are discovering the advantages of a correspondent connection here. At their disposal are broad fact-finding facilities, backed by the knowledge gained in fifty years of banking and trust work, and a correspondent department geared to the dayto-day needs of out-of-town banks. Bankers considering the appointment of a Chicago correspondent are urged to keep this institution in mind. THE NORTHERN TRUST COMPANY 50 S O U T H LA SALLE STREET, C H I C A GO M em ber F ederal D eposit Insurance Corporation Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 70 ' » T R U S T O f f i c e r S a y s “It's the best yield and s a f e s t investment for small trust funds today," said a Chicago trust offi cer, discussing his pur chase of a First Federal investment certificate for an estate. Write today for a prospectus explain ing the 3 per cent current yield, no market fluctua tions, and insured safety of this convenient legal investment. First Federal S avings a n d L o a n A s s n , o f C h ic a g o 130 South La Salle Street Chicago INSURED SAFETY PLUS M A X IM U M R ETU RN Current Rate A v iew th ro u g h th e c irc u la r lo b b y o f th e O c c id e n ta l B u ild in g a n d L o a n A sso c ia tio n , of O m aha. T he O c c id e n ta l re c e n tly co m p leted m o d e rn iz a tio n of its b u sin e ss q u a rte rs a t 18th a n d H a rn e y s tre e ts . crotch m ahogany w ainscoting w ith fu rn itu re to m atch, have pale green w alls, huge in direct lighting fixtures and rich blue spruce carpeting. The so u th w est corner of th e office has been converted into a p riv ate office for the O ccidental attorney. 3% W rite for F a cts STANDARD FEDERAL Savings and Loan Association OF K A N S A S CITy 923 Walnut St. Kansas City, M o. Safety for Investors — Service for Home Ow ners Skillful management, and friendly service are constantly winning new friends for this fast-growing insti tution. Assets $1,215,000.00 PO LK COUNTY FED ER A L S a v in g s & L o a n A s s n . 511 Seventh St. DES MOINES Federal Home Loan Bank of Des Moines DES MOINES, IOWA Statement of Condition August 31, 1939 RESO URC ES A d van ces to M em b ers_$15,120,218.08 U . S. G overn m en t O b li gation s and S ecu rities G uaranteed by U . S .___ 1,367,000.00 A ccrued In terest R e c e iv ab le _________________ 77,673.13 D eferred C h a r g e s ______ 21,653.02 Cash ____________________ 2,640,544.33 $19,227,088.56 L IA B IL IT IE S G overn m en t Stock S u b scrip tion _____________ $ M em b ers’ S tock S ub scrip tio n _____________ D eb en tu res O u tstan d in g P rem iu m s on D eben tures _________________ D ep o sits _______________ A ccrued In terest P ayab le Su rp lus: R eq u ired L egal R e s e r v e __$276,608.33 U n d iv id e d P rofits __ 322,025.38 7,394,900.00 2,290,850.00 7,500,000.00 C u rre n t D iv id e n d s 4,687.50 1,383,000.00 55,017.35 598,633.71 $19,227,088.56 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4% on Savings Paid Semi-annually W r ite f o r In fo rm a tio n M em b er F ed era l H om e Loan B ank S y s te m Northwestern Banker October 1939 The association v au lt is located ju st w est of the executive offices, and a w ide stairw ay leads to th e basem ent w here additional storage v au lts and w orking space has been provided. Follow ing strictly u tilita ria n lines, the telephone sw itchboard and m any of th e storage and filing cabinets are recessed into th e w ainscoting of the general office. The re su lt is a sm ooth, stream lined effect th a t lends beauty as well as efficiency. W ainscoting and o th er fixtures are all in A m erican strip ed or quartersaw ed w alnut, w ith desks in m atching woods. P o stu re chairs are upholstered in blue spruce m ohair. In discussing th e w ork th a t had been done, P resid en t F o rd E. H ovey said th a t every dollar spent on th e project w en t into th e hands of Omaha build ers, Om aha suppliers and Omaha w ork men. INSURANCE PLAN SAVINGS & LOAN ASSOCIATION 522 Grand Ave. Des Moines A Plan to Pr o m o t e Better H o m e s H E F ed eral H om e B uilding S erv ice P lan is being sponsored jo in tly by th e A m erican In stitu te of A r chitects and th e P ro d u c e rs’ Council, n atio n al o rganization of m a n u fa c tu r ers of b uilding m a te ria l and equip m ent, in cooperation w ith th e F ed eral H om e Loan B ank Board, according to M. J. W aldron, field rep resen tativ e. Its objective is to prom ote soundly b u ilt hom es—w ith em phasis on houses costing less th a n $5000. The program , alth o u g h n atio n al in scope, functions p rin cip ally th ro u g h local program s. T he n atio n al o rg an i zation lays dow n only broad principles in th e public in terest, b u t p erm its th e w idest latitu d e to a d ju st o p erations to local conditions. O perative builders, local co n stru ctio n groups, n atio n al and professional tra d e associations—all in te re sts concerned w ith resid en tial build in g —p articip ated in th e program . T he F ed eral H om e B uilding Service Plan, established by th e F ed eral H om e L oan B ank B oard tw o y ears ago, p ro vides a nucleus for th e enlarged p ro gram . T his plan, already in operation in m any com m unities, th ro u g h th e m em ber lending in stitu tio n s of th e F ederal H om e L oan B ank System , is being b roadened and will cooperate w ith n atio n al an d local p rogram s w hich provide sound, econom ically plan n ed sm all hom es. Briefly, th e pro g ram seeks to m ake available technical aid in p lan n in g and su p erv isin g th e co n stru ctio n of sm all hom es—services hereto fo re re stric te d largely to those of am ple m eans. T he service provides for th e sm all hom e buyer: T Sound financing counsel—M ost fav orable financing co n sisten t w ith th e secu rity —C om petent a rc h ite c tu ra l de sign suited to fam ily needs, site and neighborhood—A qualified b u ild er— Specification of p ro p er m aterials—Su pervision of co nstruction, and certifi cate of reg istratio n . The broad objective of the program , Mr. W aldron said, is th e estab lish m en t of reg istered hom es as a sta n d ard of value. T he certificate of reg istratio n , identifying th e hom e as a quality product, w ould add to th e de sirab ility of th e hom e as secu rity for an in v estm en t and to its value for resale or re n ta l purposes. T he re su lt of th e program , he believes, w ill be a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis hom e designs betw een one section of th e co u n try and another, and provides facilities for nation-w ide prom otion w hich otherw ise w ould be lacking. U nder th e Service Plan, some 400 hom e designs already have been con trib u te d by 230 leading residential architects. The plan, now in operation in Min neapolis and St. Paul, is available th ro u g h all of th e F ed eral Savings and Loan A ssociations there. Charles H au sler and H. W. F ridlund, tw o pro m in en t local architects, have estab lished th e C entral B ureau w hich is a clearing house for new construction jobs. T hey review th e plans and specifications giving a cost estim ate and m ake out a v ery com prehensive re p o rt including suggestions and re m arks concerning th e adequacy of the plans. In th e p ast four m onths they have review ed in excess of 150 plans for th e F ed eral Savings and L oan As sociations and m ost of these are now un d er co nstruction and being su p er M. J. W A L D R O N vised by these men. renew ed confidence in hom e ow ner The tw o F ed eral Savings and Loan ship, added stability to m ortgage val ues, and as a corrolary, cause a re A ssociations in D uluth, M innesota, in cooperation w ith building supply vival of the housing industry. The en tire program , Mr. W aldron dealers, p u t on an intensive ad v ertis em phasized, is essentially one of p ri ing program du rin g th e p ast ten w eeks v ate en terprise, utilizing existing or pointing out th e benefits of the plan. T he four B uilding, Savings and ganizations. The national organiza (T u rn to n ex t page, please) tio n m akes possible an exchange of Forty-eighth Annual Convention Iowa Building and Loan League Waterloo, October 23 -2 4 , Hotel President Monday October 23rd 9:30 A. M. Call to o rder—Gold Room. A ddress of w elcom e—E. C. Glasson, presid en t Black H aw k C ounty A b stract Company, W aterloo. R esponse—V ern M. Lynch, first vice president, Ames. A nnouncem ents. Com m ittee appointm ents. P re sid e n t’s address—T. H. Glasener, W aterloo. S ecretary -treasu rer’s re p o rt—E. M. K lapka, F o rt Dodge. A ddress—Hon. F ra n k W. Hancock, Jr., W ashington, D. C., F ederal Home Loan B ank Board. A ddress—“K now Y our Insu ran ce Policies” — H om er Tem pleton, Des Moines. A ddress—“Past, P re se n t and F u tu re of B uilding and L oans”—George E. V irden, B uilding and Loan supervisor, Des Moines. Luncheon. 72 . S A V I N G S AND LOAN . 1:30 P. M. A ddress—“R eal E sta te T itles” — A rth u r A. Z im m erm an, attorney-atlaw, W aterloo. A ddress — R obert J. R ichardson, p resid en t F ed eral H om e Loan B ank, Des Moines. A ddress—“Our Iow a T ax P ro b lem ” —George E. Pike, attorney-at-law , W aterloo. D IV E R S IF Y Your In vestm en ts Purchase insured investment certifi cates in the Safety Federal, the larg est savings and loan association operating entirely within the State of Missouri. Accounts insured up to $5,000 by the Federal Savings and Loan Insurance Association. □ C u rre n t r a te — 3 % □ Call or w rite. SAFETY FEDERAL Savings & Loan Association 910 Grand Avenue K A N S A S CITY, M ISSOURI IN V E S T S M A LL TR U ST FU N D S th is S a f e , P r o fita b le E a sy W a y ! United Federal Savin gs and Loan Certifi cates are the a n sw er to the sm all trust fund problem . By investing the entire amount of such funds this w a y , you elim inate e x p en siv e bookkeeping, and u se le ss detail. The principal of ea ch account is insured up to S5,000.00 by an a g en cy of the U. S. governm ent. Current a ssets ex ceed $1,000,000.00. Current Surplus over $24,000.00. Current dividends 4 per cent. Write for Free details. Federal Savings AND LOAN ASSOCIATION O F D E S M O IN E S 216 8th Street P h o n e 4-5324 Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ddress—M orton Bodfish, executive vice presid en t U nited States B uilding and Loan League, Chicago. 7:00 P. M. B anquet—Gold room , H otel P resi dent. E n te rta in m e n t to be announced. A ddress—“T he A m erican W ay”— Carl Taylor, executive secretary, W is consin B uilding and L oan League, Mil w aukee. Tuesday, October 24th 7:30 A. M. B reakfast m eeting. R ound table discussions: 1. “How does w ar effect our busi n ess?”—J. E. D em pster, W aterloo, Leader. 2. “Changes in th e S tate B uilding and L oan L aw ”—H. R. H anger, D u buque. 3. “Social S ecurity and U nem ploy m en t T ax As I t effects B uilding and Loans—E. S. Tesdal, Des Moines. 4. “H ow long should it take to pay for a hom e?”—E lm er E. M iller, Des Moines. 5. “G etting New L oan B usiness”— Jo h n Schenk, D avenport. 6. “H ow we handle appraisals and collections”—K eith W. Thom as, Spen cer. C om m ittee reports. U nfinished business. N ew business. E lection of officers. A djournm ent. BETTER H O M ES (C ontinued from page 71) Loan A ssociations of Fargo, N orth Da kota, prom oted an intensive ad ver tisin g program on th e p lan for th e p ast tw elve w eeks. T his developed into such an o u tstan d in g hom e con stru ctio n program th a t it w as decided to extend th e ad v ertisin g for an o th er six w eeks. The volum e of new hom e co n struction in th e Fargo-M oorhead area, for th e first seven m onths of 1939, has been larg er th a n any year for th e p ast ten years. M uch of this success has been a ttrib u te d to the or ganization of th e Fargo-M oorhead B etter H om es A ssociation w hich w as sponsored by th e F ed eral Hom e B uild ing Service Plan. Several of th e new hom es now u n d er construction w ill m e rit th e certificate of reg istratio n . O ther cities in th is d istrict w here Savings, B uilding an d L oan A ssocia tions are operating u n d er th e F ederal H om e B uilding Service P lan are Des Moines, K ansas City, and v ery recently St. Joseph, M issouri, recognized th e p racticability of th e plan and have adopted th e use of it in a new sub division now being developed. Annual Convention G eneral H ugh Johnson, F ederal Loan A dm in istrato r Jesse H. Jones, and R ep resen tativ e A lbert Gore of T ennessee w ere am ong th e nationally know n personalities w ho addressed th e U nited States B uilding and Loan League convention in A tlantic City, Septem ber 27-29. O thers included F ra n k W. H ancock, Jr., m em ber of Where You See This Emblem A Your Savings Are SAFE W hether From Individuals Small Trusts Large Corporations each account receives equal consideration. 3% Current Dividend Assets $1,700.000 G A T E C IT Y Building & Loan Association FARGO 69 B roadw ay NO. DAKOTA Member Federal Home Loan Bank System U. S. Government Supervision LEGAL INVESTMENT For INSURANCE COMPANIES (Current Dividend Rate) Accounts Insured Up to $5,000 NORTHWESTERN FEDERAL Savings &Loan Association 823 Marquette Ave. MINNEAPOLIS, MINN. -< I 73 INSURED - SAFETY Current 3% Rate BEN FRANKLIN FEDERAL SAVINGS AND LOAN ASS'N. 92 E. 4th St. St. Paul, Minn. SAFETY OF INVESTMENT We Invite Your Inquiry METROPOLITAN SAVINGS AND LOAN ASSOCIATION 107 W. 10th St. KANSAS CITY MISSOURI 3 G O O D R E A S O N S WHY YOU WILL LIKE THIS SAVINGS PLAN— 1. Liberal Earnings 2. High Safety Margin 3. Friendly Service STATE BUILDING LOAN AND SAVINGS ASSOCIATION 519 6th Ave. DES MOINES th e F ed eral H om e L oan B ank Board, M u rray Shields, N ew York financial econom ist, and Dr. R ay B. W esterfield of Yale U niversity. T he g ath erin g consisted of some 2,000 rep resen tativ es of th e savings, b uilding and loan associations in the co ntin en tal U nited States, H aw aii and A laska and co ncentrated on factors affecting th e th rift and hom e ow ner ship activities of th e A m erican people from w ith in and w ithout. T here w ere sessions for state supervisors of these in stitu tio n s practically all of w hom a t tended th e convention. A ttendance w as also draw n from th e executives of F ed eral Hom e L oan B anks, and m any directors and ap p raisers for th e asso ciations. The larg est g ath erin g of savings and loaners in th re e or four years, th e con v en tion looked tow ard th e plan n in g of 1940 procedures. The Society of R esi dential A ppraisers holding its conven tio n th e day before th e League, listed am ong its speakers its second vice president, F ra n k D. H all of N ew York City. Savings and loan delegates a t ten ded th ese sessions also. M aking loans for new house con struction, dividend and in te re st rates, th e position of th e F ed eral Savings and L oan In su ran ce C orporation, in v estm en t policies, in stitu tio n al and o th er kinds of advertising, and v a ria ble rates on hom e loans w ere am ong th e subjects discussed a t th e league m eeting. Special sessions for m an agers, advertisers, and b oth federal and in su red state-ch artered in stitu tions w ere arranged. Savings, building and loan associa tio n executives from m ore th a n a score of states gave papers or addresses on th e technical sides of th e business, geographical range of th e speaker list being from California to M assachu setts and from Texas and F lorida to W isconsin. A t th e close of th e convention sev eral h u n d red of th e delegates m ade a IN IN V E S T M E N T - ____H O M E jj h e d e r a l Sa v in g s Accounts insured up to $5000.00 AND LOAN ASSOCIATION OF DES MOINES Statement on request — our Federally Insured up to $5,000 savings accounts are the solution to your invest ment and trust problems. Current dividend 4 per cent. FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION 819 Francis St. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - - 3 % Current Dividend Rate 3 % It W ill P ay You to Get Our Literature Before Investing W R IT E FO R B O O K L E T “ D” Fir st Fe d A eral s s o c ia t io n ' M inneapolis, M innesota •TIM E IS K IN D TO T H E T H R IF T Y ’ IN C O M E W ITH SA FETY □ In s u r e d S h a r e s □ INSURANCE PLAN SAVINGS & LOAN A S S O C I A T I O N Walter J. Virden, Sec’y M O U N T P L E A S A N T , IO W A DES MOINES BUILDING-LOAN & SAVINGS ASSOCIATION O ld e s t a n d in S AFETY ST. JOSEPH INSURED SA FET Y For Your Savings and Investm ent Funds L a rg e s t D e s M o in e s For more than a score of years this Association has aided in the financing of more than 2400 homes in this locality. Here your account is more than a number —it means a friend. 411 6th A ve. ELM ER E. M ILLER Pres, and Sec. D ia l 4-7119 HUBER T E. JAM ES A sst. Sec. Statem ent on request. MISSOURI 904 G rand A ven u e D es M oin es, Iow a M ember Federal Home Loan Bank System 74 ern C alifornia revolves w eekend visit to th e New York W orld’s Fair, including special cere m onies in connection w ith Savings and Loan Day at th e fair, Septem ber 30. H ost to th e savings and loan p arty on its v isit to th e fa ir’s hom e building cen ter w as th e Celotex Company w hich had rep resen tativ es to guide th e p a rty on th e ir first v isit to the grounds, and to give them a detailed to u r th ro u g h th e Celotex house, one of th e 21 m odel houses in this portion of th e fair. C erem onies of Savings and Loan Day included an address of welcom e by G rover C. W halen, presid en t of the fair, and by George W. W est, the L eague’s p resen t first vice president. around the Town House FD IC Report llliM C tid ' All that ¡s best in South R esources of th e 648 insured com m ercial banks in th e S tate of M inne sota totaled $999,377,000 on Ju n e 30, 1939, according to a su rv ey m ade pub lic by th e F ederal D eposit Insu ran ce C orporation. D eposits in the in su red banks w ere listed as $893,348,000. D em and deposits of th e latest call date am ounted to $570,216,000 and tim e deposits totalled $323,132,000. Loans and discounts of th e re p o rt ing b anks am ounted to $302,170,000, an increase of $18,622,000 over th e Ju n e 30, 1938, total. D irect and g u aran teed obligations of th e U nited States G overnm ent listed by th e M innesota banks am ounted to $242,202,000 on Ju n e 30, 1939. O ther securities totalled $112,072,000. L oans and discounts of th e 13,569 in su red com m ercial banks th ro u g h o u t th e co u n try totalled $16,040,373,000, an increase of $314,793,000 or 2 per cent over th e am ount rep o rted Ju n e 30, 1938. D eposits increased from $47,460,741,000 rep o rted th e previous year to $52,326,754,000, th e highest figure since in au g u ratio n of deposit in su r ance. . . . e sta b lish e s it as " A me r i c a ’s Finest Hotel.” Yet tariff is in k e e p in g with t o d a y ’s eco n o m ica l trend . . . Home o f the Fam ous Z e b ra Room. U n d er th e Sa m e M a n a g e m e n t as The Gotham The Hrata NEW YORK CITY CHICAGO The Blachstone CHICAGO The£van$hire CVANSTttN. IL L A. S. Kirkeby, Monaging Director The Tourn Bouse Wilshire Boulevard LOS A N G E L E S W e Specialize in SURETY BONDS Iowa Bank Agencies Solicited mUTUAL SURETY compnnY OF IOWA Des Moines, Iowa BE C A R E F U L W H E R E Y O U PUT Y O U R N EW Dobbs Cross Country Hat They're In Big Demand Among Those Who Love Fine Things * 5 FR A N K E L S P E C IA L C O M B IN A T IO N O F F E R S DES M O IN ES G E N U IN E E N G R A V E D S T A T IO N E R Y C olon ial F in an ce C om pany 1000 LETTERHEADS 500 ENVELOPES 200 BUSINESS CARDS □ Write for samples C. C. B R O O K S , Jr., P resid en t M O O N FOUNDED 1907 BY DANIEL E. MOON 1210 G rand A ve. D es M oin es, Iow a [ I h i , \ i m m r o c» O. L . W Y N K O O P , Sec.-Treas. □ FI NE BUSINESS STATION E' R Y Northwestern Ranker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m i r iG DES MOINES IOWA 923 Grand Avenue 75 R esources of th e 165 in su red com m ercial b an k s in th e S tate of South D akota totalled $101,285,000 on Ju n e 30, 1939. D eposits in th e in su red b an k s w ere listed as $88,688,000. D em and deposits of th e latest call date am ounted to $60,495,000 and tim e deposits totalled $28,193,000. L oans and discounts of th e re p o rt ing b an k s am o u n ted to $37,820,000, an increase of $4,845,000 over th e Ju n e 30, 1938, total. D irect and g u a ran teed obligations of th e U nited S tates G overnm ent listed by th e South D akota b an k s am ounted to $16,709,000 on Ju n e 30, 1939. O ther secu rities totalled $15,438,000. R esources of th e 159 in su red com m ercial b an k s in th e State of N o rth D akota totalled $78,123,000. D eposits in th e in su re d b an k s w ere listed as $67,674,000. D em and deposits of th e la te st call date am o u n ted to $39,209,000 and tim e deposits totalled $28,465,000. L oans and discounts of th e re p o rt ing b an k s am ounted to $23,738,000, an increase of $358,000 over th e Ju n e 30, 1938, total. D irect and g u a ra n te e d obligations of th e U nited S tates G overnm ent listed by th e N o rth D akota b an k s am ounted to $18,770,000 on Ju n e 30, 1939. O ther secu rities totalled $10,014,000. R esources of th e 367 in su red com m ercial b an k s in th e State of N ebraska to talled $341,564,000 on Ju n e 30, 1939. D eposits in th e in su red b an k s w ere listed as $303,076,000. D em and de posits of th e latest call date am ounted to $242,204,000 and tim e deposits to talled $60,872,000. Loans and discounts of th e re p o rt ing b an k s am ounted to $116,082,000, an increase of $12,294,000 over th e Ju n e 30, 1938, total. D irect and g u a ran teed obligations of th e U nited States G overnm ent listed Banking Su pplies of H ighest Q uality — Courteous Service—Sensible Prices. Specialized HARVESTING MACHINERY 1 8 8 6 L. W. HOLLEV & SONS C o m p lete BANK and OFFICE 100 EAST GRAND I J 3 J ’ Threshers Combines Corn Pickers Equipm en t DES M OINES, IOWA Y Dependable products for over 50 years to Harvest and Thresh all grains and seeds. A good investment for farm owners. A profitable business for dealers. Safe and desirable farm paper is profitable for local financing. □ Wood B ros. Thresher Co. Des Moines, Iowa C 'U c / iia n M ET A L DESK C A L E N D A R S • Create custom er good-w ill and estab lish year ’round “desk con ta c t” for your firm name w ith th ese attractive, easel type, m etal desk calendars. M ade in several size s and styles. For prices in various qu antities, w rite: C . E. ERICKSON C O . Incorporated DES MOINES, IOWA = A A COMPLETE KIT OF TOOLS Participating, Non-participating Juvenile. An nual and Single Premium Annuities— Every thing that any good company has, and several contracts that many companies do not have. There Is Nothing Better Equitable Life Insurance Company of Iowa G R A D Y V. F O R T , General A g en t = Des M oin es, I o w a U n d e r th e S a m e M a n a g e m e n t a s Iow a’s L argest B u sin ess T raining School Many banks, bond-houses, insurance companies and other financial in sti tutions employ A. I. B. graduates. Write or telephone when you need efficient office employes. E. O. FENTON, Director The .Orata CHI CA GO The Evan sh ire E V A NST O N. ILL. TheBlactatone CHI CA GO IheToiun fiouse L OS A N G E L E S A. S. Kirkeby, Managing Director American Institute of Business D E S M O IN E S 10th and G rand T e l. 4-4221 Fifth A venue at Fifty-Fifth Street • NEW Y O R K CITY Northwestern Banker October Í939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 76 ANOTHER PROFITABLE SERVICE The right kind of insurance agency in a bank can be both interesting a n d profitable. Farmers Union Life offers modern, salable policies — plus an attractive a g e n c y contract for banks. Write for details. F A R M E R S UNION LIFE Insurance Co. H o n e Office, D es M oin es, Iow a by th e N ebraska banks am ounted to $71,871,000 on Ju n e 30, 1939. O ther securities totalled $36,605,000. R esources of th e 113 in su red com m ercial banks in th e State of M ontana totalled $151,587,000. D eposits in th e in su red banks w ere listed as $135,577,000. D em and de posits of th e latest call date am ounted to $94,102,000 and tim e deposits totalled $41,475,000. In d e x to A d v ertisers A A l l e n W a l e s A d d i n g M a c h i n e C o r p ............ A l l y n a n d C o m p a n y , A . C ................................... A m e r i c a n I n s t i t u t e o f B u s i n e s s .................... A m e r i c a n N a t i o n a l B a n k & T r u s t C o .. . . 79 36 75 48 n B a n k e r s T r u s t C o m p a n y ................................60-6 1 B e l l e v i e w - B i l t m o r e H o t e l ................................. 77 B e n F r a n k l i n F e d . S a v . & L o a n A s s ’n . . . 73 B r e w e r C o m p a n y , W . K ..................................... 77 C P o l ic v h o l d c r s fllu T U fiL Gmifluv Comp«nv Home Office: W est L iberty, Iowa B usiness Office: D es M oines, Iowa ■ F u ll C overage A u to m o b ile C e n t r a l H a n o v e r B a n k & T r u s t C o ............ C e n t r a l N a t i o n a l B a n k & T r u s t C o ............ C h a s e N a t i o n a l B a n k ........................................... C i t y N a t i o n a l B a n k & T r u s t Co., C h i c a g o C i t y N a t i o n a l B a n k , C l i n t o n ............................ C o l o n i a l F i n a n c e C o m p a n y .............................. C o n t i n e n t a l - I l l i n o i s N a t . B k . & T r u s t Co. C o n t i n e n t a l N a t i o n a l B a n k .............................. C r u m m e r C o m p a n y , R . E ................................... 66 3 6 57 68 74 52 47 40 n D a v e n p o r t & C o m p a n y , F . F ............ 46, 49, 67 D e L u x e C h e c k P r i n t e r s , I n c ........................... 58 D e s M o i n e s B l d g . L o a n & S a v . A s s ’n . . . . 73 D r o v e r s N a t i o n a l B a n k ...................................... 39 N o n -C a n cella b le A ccid en t and H ealth C om m ercial A ccid en t and H ealth ■ A g e n c y I n q u irie s I n v ite d W e lle ) 'fi n a n c e E q u i t a b l e L i f e o f I o w a ( G r a d y F o r t ) . . . 75 E r i c k s o n C o m p a n y , C. E ...................................... 75 F F a r m e r s N a t i o n a l C o m p a n y ............................ F a r m e r s U n i o n L i f e I n s u r a n c e C o ............... F e d e r a l D i s c o u n t C o r p o r a t i o n ....................... F e d e r a l H o m e L o a n B a n k o f D es M o in es F i n a n c i a l C r e d i t S y s t e m .................................... F i r s t F e d . S a v . & L o a n A s s ’n, C h i c a g o . . F i r s t F e d . S a v . & L o a n A s s ’n., M i n n e a p o l i s .............................................................................. F i r s t F e d . S a v . & L o a n A s s ’n, S t. J o s e p h . F i r s t N a t i o n a l B a n k , C h i c a g o ....................... F i r s t N a t i o n a l B a n k , O m a h a ......................... F i r s t N a t i o n a l B a n k , S i o u x C i t y .................. F i r s t N a t i o n a l B a n k , S t. L o u i s .................... F i s h e r C o m p a n y , T h e .......................................... F r a n k e l s ....................................................................... 9 1 6 Paramount Bldg. DES MOINES, IOWA Phone 3-5156 G a t e C i t y B l d g . L o a n & S a v . A s s ’n ............. G e n e r a l M o t o r s A c c e p t a n c e C o r p ............... G o t h a m H o t e l .......................................................... G r e e n w a y & C o m p a n y ........................................ S ellin g to B an k ers PRINTING and MESSENGER PRINTING CO. 73 73 56 46 63 67 28 74 W e idvance cash to dealers who sell aut om obile tires and other small units o : merchandise on our budget plan. 72 34 75 36 77 75 73 5 77 I SUPPLIES F ort D o d g e, Iow a H H a w k e y e M u t u a l H a i l I n s u r a n c e A s s ’n . H o l l e y & S o n s , L. W ............................................. H o m e F e d e r a l S a v . & L o a n A s s ’n ............. H o m e I n s u r a n c e C o m p a n y ................................. H o t e l W e l l i n g t o n .................................................. we have been 45 76 37 70 76 70 G C o lb o la tio n FOR OVER FIFTY YEARS in an cial C RED IT < S Y S T E M Home Oi Bee, Flynn Bld?., Des M oines, Iowa I I n s u r a n c e P l a n S a v . & L o a n A s s ’n ............. I n s u r a n c e P l a n S a v . & L o a n A s s ’n o f M t. P l e a s a n t .................................................................. I o w a - D e s M o i n e s N a t . B a n k & T r u s t Co. I o w a G u a r a n t e e , I n c ............................................. 70 73 80 38 K K o c h B r o t h e r s .......................................................... 76 You can be justly proud of the modern lighting system which we install W r ite f o r E stim a te s L o u is e (2 . W e s to n LIGHTING STUDIO 925 Grand Ave. DES M OINES IOWA Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L L a M o n t e a n d S o n ................................................... L a m s o n B r o s ................................................................ L e s s i n g A d v e r t i s i n g C o m p a n y ....................... L i v e S t o c k N a t i o n a l B a n k , C h i c a g o .......... L i v e S t o c k N a t i o n a l B a n k , O m a h a ............. L iv e S to c k N a tio n a l B a n k , S ioux C ity . . . 4 41 77 65 45 50 M M c G u i r e , W e l c h & C o m p a n y ............................ M erch an ts M utual B onding C om pany. . . M e r c h a n t s N a t i o n a l B a n k . . ............................ M e s s e n g e r P r i n t i n g C o m p a n y ....................... M e t r o p o l i t a n S a v i n g s & L o a n A s s ’n . . . . M oon P r in tin g and E n g r a v in g C om pany M o r t g a g e I n v e s t m e n t C o r p o r a t i o n .......... M u t u a l S u r e t y C o m p a n y ................................... 40 77 2 76 73 74 40 74 f W here R ea lly D elicious Food Is S erved L U N C H E O N and DINNER Sunday Service STELLA E. B A R K E R 708 l/ z L ocu st St. D es M o in es, Iow a (S e co n d F lo o r ) X 77 N o r t h w e s t e r n N a t i o n a l L i f e I n s . C o .......... 38 N o r t h w e s t e r n F e d e r a l S a v . & L o a n A s s n 72 N N a t i o n a l B a n k o f C o m m e r c e ......................... N a t i o n a l B a n k o f D e t r o i t ................................. N a t i o n a l B a n k o f W a t e r l o o ............................ N a t i o n a l C o m p a n y , T h e ...................................... N o r t h e r n T r u s t C o m p a n y ................................. N o r t h w e s t e r n N a t. B a n k & T r u s t C o.. . . 49 67 62 40 69 55 Hotel Wellington Surprisingly Reasonable Rates Rooms With Bath $2.00— $2.50 And a Courtesy and Hospitality You Will Thoroughly Enjoy Farnam at 18th Street O O c c i d e n t a l B u i l d i n g - & L o a n A s s ’n ............. 44 O m a h a N a t i o n a l B a n k ........................................ 21 P P h i l a d e l p h i a N a t i o n a l B a n k ............................ P i o n e e r H i - B r e d C o r n C o m p a n y .................. P o l k C o u n t y F e d . S a v . & L o a n A s s ’n . . . P o l i c y h o l d e r s M u t u a l C a s u a l t y C o ............ P y p e r C o m p a n y , I n c ............................................... R a n s o m T e a R o o m ................................................ S S a f e t y F e d e r a l S a v i n g s & L o a n A s s ’n . . . S c a r b o r o u g h a n d C o m p a n y .............................. S h a w , M c D e r m o t t a n d S p a r k s ....................... S t a n d a r d F e d e r a l S a v i n g s & L o a n A s s ’n S t a t e B u i l d i n g S a v i n g s & L o a n A s s ’n . . . S t e e l S t o r a g e F i l e C o m p a n y ............................ S t o c k Y a r d s N a t i o n a l B a n k , St. P a u l . . . 72 31 32 70 73 68 54 mut ual BONDING COMPANY In corp ora ted 1933 H o m e Office VALLEY B A NK BUILDING D es M o in es, Iow a T T o w n H o u s e ............................................................... Omaha 27 64 70 76 47 76 M ERCHANTS • 74 • U U n i t e d F e d e r a l S a v i n g s & L o a n A s s ’n . . 72 U n i t e d S t a t e s N a t i o n a l B a n k ....................... 42 U n i t e d S t a t e s C h e c k B o o k C o ..........43, 51, 59 DO PEOPLE READ BANK ADVERTISING? N0--when it is about big US and little YOU. YES--when it is as interesting as the news and pictures in their newspaper. May we prove it? W W a l t e r s C o m p a n y , C h a s . E .............................. 50 W a n t A d ...................................................................... 39 W a n t A d ...................................................................... 63 W a n t A d ...................................................................... 65 W e s t o n , L o u i s e A .................................................... 76 W e s t e r n M u t u a l F i r e I n s u r a n c e C o .. . 24-2 5 W h i t e - P h i l l i p s C o r p o r a t i o n ............................ 35 W o o d B r o s . T h r e s h e r C o m p a n y .................... 75 W o r l d F i n a n c e C o r p o r a t i o n ............................ 76 Spinster: “So th e w aiter says to me, ‘H ow w ould you like y o u r rice?’ ” Friend: “Yes, dearie, go on.” Spinster: “So I says w istfully, ‘T hrow n a t me, big boy’.” T h is is Iow a’s o ld est surety com pany. A p ro g ressiv e com p any w ith ex p e r i en ced , con servative m anagem en t. W e are p rou d of our h u n d red and fifty ban k agents in Iow a. T o b e th e ex clu siv e rep resen ta tiv e of this com p any is an asset to y o u r bank. « © W r ite to E. H . W A R N E R S ecr eta ry and M an ager LE S S IN G A D V ER T ISIN G CO ., Inc. 910 W alnut Bldg- Des Moines, Iowa S e r v i n g I o w a B u s in e s s S in c e 1 9 0 7 jH & u ie 'it G a k t Our policy provides a maximum assessment of 2 fi % in Zones One and Two—and 3 */2 % in Zone Three (Western Iowa). Hawkeye Mutual Hail Insurance Association Carver Bldg. Fort Dodge, Iowa An Opportunity! If you have a client who wants a going business with excellent possibilities for expansion . . . IF rite V s 'S MOST Under the same Management as FAVORED SPOT Combines everything that Florida can offer — in climate, sports and social diversions— golf on its two famous 18 hole courses, tennis, trap and skeet shooting, saddle horses, salt water pool and sea bathing, dancing, fishing and boating . . . moving picture theatre and smart New York shops . . . excellent cuisine and service . . . distinguished clientele. Accommodations— 400 rooms— and large hotel cottages. Purified and softened water for drinking and bath. TheGotham TheDrake TheJ3lachstone The £uanshire TheToumfiouse AMERICAN PLAN . . . $9.50 per day and up EUROPEAN PLAN . . . $6.00 per day and up A. S. Kirkeby Managing Director NE W Y O R K CITY CHICAGO CHICAGO EVA N S TO N , ILL. LOS A N G E L E S W. K. BREWER CO. Crocker Building DES MOINES IOWA BelleuieuiBiltm ore Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 78 In the D irectors ’ Ro o m That for You! Slight Change Prospective Custom er: “Do you keep fo u n tain pens h ere?” Clerk (brig h tly ): “No, we sell th em .” P rospective Custom er: “Okay, b u t keep th e one you m ight have sold me if you h a d n ’t been so sm a rt.” “Your husb an d has a new suit.” “No, he h a sn ’t.” “W ell, som ething’s different.” “I t ’s a new hu sb an d .” Fashioned by Satan W here's That Chloroform? H ead Clerk: “I am v ery so rry to h ear of y o u r p a rtn e r’s death. W ould you like me to tak e his place?” M anager: “V ery m uch, if you can get th e u n d e rta k e r to arra n g e it.” “Say, Pete, your girl looked quite tem p ting in th a t biblical gow n she w ore last n ig h t.” “W h at do you m ean, biblical gow n?” “Oh, you know , so rt of lo and be hold!” Perfume Beat Him to It Frosh: “I ju s t b ro u g h t hom e a sk u n k .” Room m ate: “W here ya gonna keep him ?” Frosh: “I ’m gonna tie him u n d er th e bed.” Room m ate: “W h at about th e sm ell?” Frosh: “H e’ll have to get used to it like I did.” “W h at did yo u r wife say w hen you cam e hom e soused last n ig h t?” “She d idn’t say a w ord. A nd I w as going to have these tw o teeth taken out anyhow .” Free to Roam Boy: “Say, dad, w h a t does it m ean w hen th e pap er says one m an w en t to a convention as a delegate-at-large?” Dad: “It m eans his wife d id n ’t go w ith him , son.” Half Educated Over in a co rn er n e a r th e fireplace, Uncle E zry had been w orking in d u s trio u sly w ith a stu b pencil and a piece of paper. Suddenly he looked up and smiled. “Doggone!” he exclaim ed. “If I a in ’t learn ed to w rite .” Maw got up and looked over his shoulder at th e lines scraw led across th e paper. “W h at do it say?” she asked. “I don’t know ,” said U ncle E zry, p uz zled. “I a in ’t learn ed to read y e t.” The Other Half Pound “I sen t m y little boy for tw o pounds of plum s and you only sen t a pound and a half. A re y o u r scales co rrect?” “My scales are all rig h t, m adam . H ave you w eighed y o u r little boy?” Mixed with a Spoon “M aking love,” says a handsom e grocery clerk w ho is p opular w ith th e girls, “is like m aking pie. All you need is a lot of c ru st and some apple sauce.” Northwestern Banker October 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Playing Safe The b arb er w as d ark and sw arthy, his eyes black and sparkling. It w as evident th a t he w as descended from L atin stock. “W h at do you th in k of th e Italian situ a tio n ?” he in q uired of th e cus tom er. “W hat is your opinion of M us solini?” “The sam e as y o u rs,” replied the m an in th e chair. “B ut how do you know m y opinion?” in q u ired th e startled barber. “I don’t,” adm itted the m an, “b u t you have th e razo r.” H e ’ll W ait The b eautiful young girl shook h er head decidedly. “No,” she said, “I cannot m a rry you. You are over 70, and I am only 16.” The old m an shrugged his shoulders. “All right, dearie,” he signed, “I ’ll w ait.” Natural Inference The subject before th e class w as “The Cow.” The teach er asked th e class about the uses to w hich th e p arts of th e dead anim al w ere put, w hen it w as b ro u g h t out th a t th e flesh w as eaten, and from th e hide leath er for boots and shoes w as made. “A nd w h at do w e m ake of the h o rn s? ” th e teach er queried. Up shot th e h and of a sm all boy. “W ell, w h at is it, m y boy?” “H ornam ents, sir.” History Up to Date Teacher: “Jane, w ho w as A nne Boleyn?” Jane: “A flatiron, sir.” Teacher: “W h at do you m ean?” Jane: “W ell, our h isto ry book says th a t ‘H en ry having disposed of C ather ine, pressed his su it w ith A nne Boleyn.’ ” Ain't Worth It R astus: “H ere’s d at q u a rte r ah b o r row ed from you last y e a r.” Sambo: “Yuh done k ep ’ it so long d at ah don’t know if it’s wuff w hile for me to change m y ’pinion of y u h jes’ fo’ tw o b its.” Efficiency The d ep artm en t store engaged an efficiency expert, w hose obsession w as to move th e d ep artm en ts to different p a rts of th e store every day. One day a section w ould be on th e top floor, th e nex t it w ould be in th e basem ent, and on th e th ird it w ould be placed w here th e re sta u ra n t had been. A fter th ree w eeks of th is an old lady approached a harassed floorw alker and asked him if he could tell h e r w here th e d rap eries d ep artm en t was. “No, m adam ,” he said w earily; “b ut if y o u ’ll stan d here for a few m inutes I ’m sure y o u ’ll see it go by!” Who'd Be a Teacher? “B-e-d spells bed,” said th e teach er to h er backw ard pupil. “Now do you und erstan d , T om m y?” “Yes,” said Tom m y glibly. “Well, c-a-t spells cat, d-o-g spells dog, and b-e-d spells—w h at did I tell you b-e-d spells?” “I ’ve forgotten, teach er,” w hispered Tom m y contritely. “Well, once m ore, b-e-d spells w h at you sleep in. Now w h a t is it?” “My sh irt!” Correct Small D aughter: “W h at is alim ony, M other?” M other (form er w ife of insurance agent): “A lim ony is a m a n ’s cash su r ren d er value.” ; WE SELL ALLEN WALES-THE WORLD'S FINEST ADDING MACHINES A. B. C raw fo rd 427 C o lleg e S treet S pringfield, M o.—T elep h o n e 1807 A llen W a le s A d d in g M achine S ales Co. 127 S o u th T hird S treet M in n e ap o lis—B rid g ep o rt 7074 W . E. W ilcox 719 L afay ette S treet W a te rlo o —T elep h o n e 3924 C. A. B ishop 420 F elix S treet St. J o s e p h —T e lep h o n e 6-1188 R. E. M u rp h y 321 W e st T hird St. G ra n d Isla n d —T elep h o n e 140 T. I. M cLane 213 F ifth A v e n u e S outh C linton—T ele p h o n e 386 D. Filizola 114 E. W all S treet F ort S cott—T ele p h o n e 164 A llen W a le s A d d in g M achine A g en cy 1535 W aln u t S treet K apsas C ity —V ictor 3228 L. M. G o eller N orfolk—T elep h o n e 1515 A. J. R a d er 406 Sixth S treet Sioux C ity —T e lep h o n e 5-5764 L ee B. H ausam 408-410 N. M ain S treet H u tch in so n —T elep h o n e 127 G uy W. Edm unds 211 N. 7th S treet St. L ouis—C h e stn u t 0220 E. E. M oore 1829 M ain S treet P a rso n s—T e le p h o n e 197 H. A. Lane 718 M ain S treet J o p lin —T e lep h o n e 70-71 W ilb u r E. W alk er 145 N. B ro ad w ay W ich ita—Dial 2-3486 C. W . A n d e rso n 220 S outh 6th S tre et B rain erd —T elep h o n e 300 Don R. S heldon 132 W est 13th S treet D u b u q u e —Tel. 4610 R. D. .Dennis 308 S o u th F ilth St. L e a v e n w o rth —T ele p h o n e 176 M. J. D aboll 828 St. G erm ain St. St. C lo u d —T elep h o n e 630 L. G. S hannon 1005 C entral A ve. F ort D o d g e —P h o n e W alnut 3446 J. W . P axton B loom ington—T elep h o n e 2384 J . G. D ow ns A. L. H am ilton 111 T hird St. Thief R iver F a lls—T e le p h o n e 198 G. H. Bailey 230 E. S econd St. O ttu m w a—T elep h o n e 1539 A llen W a le s A d d in g M achine A g e n c y 209 W est Ja c k so n Blvd. C h icag o —P h o n e W a b a s h 4679-80 A. F. M isch 212 & 214 W est 9th S treet C o fie y v ille —T e le p h o n e 54 E. R. Barr . 24 W e st 6th S treet E m p o ria—T ele p h o n e 344 rtf '’"?i E. C apitol A v e. Digitized for203 FRASER J e ffe rso n C ity —P h o n e 2254 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J. F. K arbush 205 S. 18th S treet O m ah a—A tlantic 2413 E. L. M cDonald 314 S h o p s Building D es M o in es—Tel. 3-7762 A. L. R iley N ew H am p to n —T elep h o n e 110 E. E. F ritzin g er 521 T am a Bldg. B urlingto n —T elep h o n e 428 V• V. D. M erv eau x 2 1 1 Vi T h ird St., S. E. C e d ar R a p id s—T elep h o n e 4546 Strategic central location near the center of Iowa and the Nation places this Bank within a few hours of leading financial centers throughout the country. By direct transcontinental air route, Des Moines is only 5 hours and 50 minutes actual flying time from New York; only 9 hours and 17 minutes from Los Angeles. Nine railways, operating 19 lines in and out of Des Moines, provide additional speedy facilities for the clearance of transit items to all parts of Iowa, and elsewhere. Skilled personnel with modern equipment is trained to give fast service on collections. These are important reasons why an increasing number of Banks and Bankers find it satisfac tory and profitable to use the correspondent services provided by Iowa's Largest Bank. Since 1875 . . . A Dependable Correspondent Connection . . . Through Good Times and Bad Iow a -Des Moines National Bank & Trust Company member https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis federal deposit insurance c orporation
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