Full text of The Northwestern Banker : October 1947, 52nd Year, No. 723

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OCTOBER
1947

Survey Section
Pages 17 to 24

lO W i

Convention

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Federal Reserve Bank of St. Louis

JOSEPH M. DODGE— NEW PRESIDENT A. B. A.

GREETINGS TG THE KIWI ASSOCIATION!

■

The Merchants National of Cedar Rapids extends sincere greetings to the
Iowa Bankers Association holding its 61st annual convention October 6-8. As
a member of this efficient organization, we rejoice in its record of service over a
period of three score years.
Friendly service, plus complete correspondent facilities, have likewise won
thousands of friends for The Merchants National during its 66 years of opera
tion. We, too, are proud of this record.

A CEDAR R A P ID S B A N K

R A PID S

SERVICING A LL IOWA.>

OFFICERS
JAMES E. HAMILTON, Chairm an Executive
Committee
S. E. COQUILLETTE, Chairm an of the Board
JOHN T. HAMILTON II, President
H. N. BOYSON, V ice President
MARK J. MYERS, V ice President a n d C ashier
GEORGE F. MILLER, V ice President and
Trust Officer
MARVIN R. SELDEN. V ice President
FRED W . SMITH, V ice President

R. W . MANATT, Assistant C ashier
L. W . BROULIK, Assistant C ashier
PETER BAILEY, A ssistant C ashier
R. D. BROWN, Assistant C ashier
O. A . KEARNEY, A ssistant C ashier
STANLEY J. MOHRBACHER, Asst. C ashier
EVERETT C. PRATT, A ssistant C ashier
C. F, PEREMSKY, Assistant C ashier
VICTOR W . BRYANT, Assistant C ashier
WALLACE S. HAMILTON, Building M anager

THE

MERCHANTS
NATIONAL BANK

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Federal Reserve Bank of St. Louis

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

edar

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Federal Reserve Bank of St. Louis

R a p i d s , Iowa

6 MEN SPEN T A TOTAL OF
28 H O U RS GATH ER IN G THE
FA C TS IN THIS LETTER

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WHY BANKERS TRUST CREDIT INFORMATION IS DEPENDABLE
HEN credit information is needed, a prompt
report that is accurate, complete, and specifically
directed to the problem is essential.

That is why a Bankers Trust Credit Information Letter
is based on interviews with suppliers, customers, com
petitors, banks, trade associations, and established
credit agencies. That is why each credit inquiry re
ceives the personal attention o f an experienced credit
officer.
W e know that an inquiry calling for detailed, hardto-get facts cannot be answered as the result of a rou
tine investigation.

Another plus factor is the organization o f our Credit
and Security Research Department along industry
lines, where trained analysts w ork together in sections
specializing in important industries. Here, the infor
mation obtained by our investigators is appraised in
the light o f current trade conditions, assuring the
proper evaluation o f the significant facts.
This is what it takes to prepare a Bankers Trust
Credit Information L etter— a letter
w h ich re flects the season ed
judgm ent o f experienced
credit men.

Bankers T rust Company
NEW YORK
Member Federal Deposit Insurance Corporation

Northwestern Banker, O cto be r, 1947

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Federal Reserve Bank of St. Louis

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SAFETY PAPER FOR CHECKS

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Federal Reserve Bank of St. Louis

GEORGE LAMCNTE & SON. NUTLEY. NEW JERSEY

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N ftltO N tU

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Check Paper All Year Own
Why not follow the lead of America's out
standing banks and corporations? Let us
reproduce your trade-mark in the paper
itself. Such INDIVIDUALIZED check paper pro
vides maximum protection against altera
tion and counterfeiting — sa ves banks
sorting time — helps prevent errors.

TW
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AVYUNESARC« LAM
ONTETRADE-M
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Northwestern Banker, O c to b e r, 1947

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CALIFORNIA'S^
O L D E ST
N ATIO N AL )
BANK

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‘W b e si B ele c tir u i
A 'W e r te te t

11-8
1210

GoAAeApjcm&ent. . .

...consider the advantages of using the services of
this pioneer, independent institution— California’s
Oldest National Bank.
1. Strategically located in the San Francisco Bay Area, the geo
graphical center of the Pacific Coast States and financial center
of the West.
2 . Experienced personnel. Ninety-fi ve of our 447 employees ha ve
been associated with this bank for 2 5 years or more.
3 . Strength, stability and quality of banking services for over
76 years.
4 . A network of correspondent hanks to help serve you in the
West and throughout the Pacific Basin.
5 . Resources in excess of $ 3 2 5 ,0 0 0 ,0 0 0 with full facilities to serve
all your correspondent banking needs.
We Invite Your Inquiries.

CROCKER FIRST NATIONAL RANK
OF S A N F R A N C IS C O
O N E M O N T G O M E R Y S T R E E T • SA N F R A N C IS C O 20, C A L I F O R N I A

Northwest ern Banker, O c to b e r, 1947

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Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation

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I(IHIS FAVORITE
filli RESPONDENT II INk

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Federal Reserve Bank of St. Louis

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WM. J. GOODWIN
Chairman, Board of Directors

EMMETT E. JOHNS
Vice President

C. M. LARSON
Assistant Cashier
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Federal Reserve Bank of St. Louis

E, F. BUCKLE/
President

J. R, CAPPS
Vice President

IRWIN ABRAM
Vice President

W. G. KANE
Vice President

GEORGE NELSON
Assistant Cashier

E. fi. BOWLIN
Assistant Cashier

DALE C. SMITH
Assistant Cashier

I f there is anything any of our officers

Annual Convention of the Iowa Bankers’

can do to add to your comfort, conven-

Association, Des Moines, October 6, 7 &

ience or pleasure while attending the 61st

8th — please feel free to call upon them

C E N T R A L NA T I ONA L BANK
and TRUST COMPANY • DES MOINES, Iowa
Member Federal Deposit Insurance Corporation

FRANK R. WARDEN
Vice President

A, T, DONHOWE
Vice President

LEHMAN PLUMMER
Vice President

FRED H. QUINER
Vice President

H , C. WINDER

Cashier

NOEL T. ROBINSON
Vice President and Trust Officer
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Federal Reserve Bank of St. Louis

, BARTMESS» JR,
Assistant Cashier

J. E. QUINER
Assistant Cashier

D. R. WITHINGTON
Assistant Cashier

I. L. WRIGHT
Trust Officer

ALBERT C. ROBERTS
Trust Officer

RAYMOND W. JONES
Trust Officer

https://fraser.stlouisfed.org
A bove: This photograph of the Main Banking Room was
June 10, ¡941— during the Formal Opening of
Federal Reserve Banktaken
of St. on
Louis

Below: This picture illustrates just part of
th e n ew an d e n la r g e d B u d g e t L o a n
Department.

At left, and below: These two views depict the Chair
man of the Board’s O ffice and the Directors' Room
. . . both combined into one large room.

Below: A typical private office in oar
new and enlarged banking quarters.

ïp œ # u m â ® 4 m e u a

The Presidential portraits here are only excelled by those in the Capitol at Washington

M anor Hall

properties out of town over
A legend relates that during the brilliant
which a Royal Charter gave
wedding festivities a tall blanketed Indian
him full manorial rights. On
appeared in the doorway and is supposed
one of his estates, in 1682, he
to have intoned, “ Your possessions shall
erected the original Philipse
pass from you when the Eagle shall despoil
M a n o r Hal l
the Lion of his mane.”
which is incorpo
For years Mary pondered
rated in the pres
this strange prophecy, but its
ent structure.
meaning was not revealed un
A man of cul
til the Revolution when, like
ture and educa
many other loyalists, the
tion, the second
Philipse family and their con
Frederick, who succeeded to
nections were virtually ban
the title upon the death of his
ished. The American Eagle
grandfather, played a promi
had despoiled the British Lion
nent part in the affairs of the
of its Colonial possessions.
community. It was he who in
Thereafter the Manor Hall
A la ry Philipse
1745 enlarged the manor
belonged to a succession of
house to three times its original size. His
private owners until it was sold to the city
two daughters, Mary and Susannah, made
of Yonkers in 1868. LIsed as the City Hall
the house a mecca for many of the gallants
for some years, it is now under the joint
of the day.
custody of the New York State Department
It was during the regime of the third and
of Education and the American Scenic and
last Frederick that his sister, the beautiful
Historic Preservation Society.
Mary Philipse, met Washington. Whether
7he Home, through its agents and brok
he was actually a suitor is not certain, hut
ers, is America’s leading insurance protector
a century later her grand-nephew declared
of American Homes and the Homes of
that if the dominant Mary had become
American Industry.
W ash in gton ’ s wife she
would have prevented his
leadership of the American
cause. Whatever Washing
ton’s aspirations may have
been, it was Roger Morris
whom M ary chose from
N E W
Y O R K
among her many admirers.
A U T O M O B I L E

A PROPHECY
FULFILLED

F George Washington had won the hand
of the lovely Mary Philipse, it might, in
the words of one historian, “ have changed
the destiny of the Philipse family for the
better or that of the Colonies for the worse.”
Until the Revolution, however, the Philipse
family fared very well indeed. As early as
1678 Frederick Philipse, the first Lord of the
Manor, was said to be the richest man in New
Amsterdam and had also acquired extensive

* THE H O M E *

The scene o f M a r y 's elaborate w edding to Roger M o r r is

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Federal Reserve Bank of St. Louis

ITU
GCKSOUTERRORS!

The design and construction of the National 2000
Proof Machine automatically makes detailed accuracy
a certainty.
Through its “Lock Proof” feature, any error in the
entry of items is automatically localized to a single
deposit, and must be corrected before the machine will
handle the next item.
Accuracy in sorting items is facilitated by the auto
matic opening of a shutter located on the compartment
in which the item should be placed. This shutter is
actuated by the depression of the classification key
used in identifying the item on its individual listing tape
and/or the master tape.
This National Proof Machine takes care of all mail,
counter, and clearing house items. It not only provides
centralized control of all departments, but also positive
Northwestern Banker, O c to b e r , 1947

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Federal Reserve Bank of St. Louis

proof of every credit total recorded. W h y not take up
your problems with your National representative?
H e’ll gladly demonstrate the advantages of the National
Proof Machine, or of any of the other time-and-moneysaving Nationals that can help any bank, large or small.
Or write to The National Cash Register Company,
Dayton 9, Ohio. Offices in principal cities.

------------ > e / fr a &

o n a l

CASH REGISTERS • ADDING MACHINES
ACCOUNTING MACHINES

TH E NATIONAL CASH REGISTER COMPANY

D e a r KtUtar

DES M O IN ES'
Oldest Financial journal West of the Mississippi

The following letters were received
from Northwestern Banker readers,
liour views and opinions on any sub
ject will be gladly published in this
column.

"Great Interest to Our Officers"
“ The survey that you published in the
N orth w ester n B a n k e r , 'Why I Chose My

Bank/ was o f such great interest to the
officers of our bank that some of them
made inquiry about your procedure in secur
ing this data with the possibility in mind
that we might attempt to conduct a similar
study in California.
“ We hope that you continue through the
N orth w ester n B a n k e r to make other
studies on this subject for never was it
more important for all banks throughout
the country to turn the mirror of public
opinion upon themselves for the purpose of
improving the relations of private banking.”

Glenn E. Carter, Asst. Vice
Pres., Public Relations, Bank
o f America, Los Angeles
Headquarters, Los Angeles
54, California.

"A Nice Job"
“ You certainly did a nice job in giving
a boost to the Greater South Dakota Asso
ciation on your editorial page in the August
issue of the N orth w ester n B a n k e r , and
for all of which you have our thanks.”
George A. Starring, Treasur
er, Greater South Dakota
Association, Huron, South
Dakota.

"To Compliment You"
“ I want to

compliment you upon the

N orth w ester n B an k e r of which you are

the publisher and I want to tell you how
much I appreciated the editorial which you
carried on page 11 of your splendid maga
zine, the August number, in connection with
Mr. Muir’ s testimony before the House
Banking Committee.”
A. B. Furnish, Vice Presi
dent, Louisville Trust Com
pany, Louisville, Kentucky.

So Often , l o o
Boss: You want Wednesday off?
Why?
Worker: It’s our silver wedding
anniversary and my wife and I would
like to celebrate.
Boss: Are we going to have to put
up with this every 25 years?

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Federal Reserve Bank of St. Louis

52nd Year

•

No. 723

IN THIS OCTOBER, 1947, ISSUE
EDITORIALS
A cross the Desk from the P ublisher........................................................... 14

FEATURE ARTICLES
Dear E d i t o r ...........................................................................................................
F rontispage ............................................ ............................. ........... ......... ..........
Savings Deposits A re Still In creasin g.............. .........................................
News and V iew s.............. ................................ .................... .............................
Complete 50 Y ears o f B anking.................................... .................. ................
H ow Our Customers Feel A bout Service C harges..................... .............
Features o f the F. A. A . Convention................................... ...... ..................
A bout Bankers Y ou K now — David T. Beals.............................................
Consumer Credit Is In creasin g........................................................................
W ill N ot Relax Control o f Installm ent Credit.......... ................................
Can C orporation Property Be Conveyed?— Legal Questions............
M id-Continent T ru st Conference in Chicago.............................................

13
16
17
18
18
19
20
21
22
24
26
34

BONDS AND INVESTMENTS
W hat You Have L eft A fte r T axes................................ W arren F . Sarle
Interest Rates Inching H igher.................................. Raym ond T rig g er
A t the Nebraska Annual Field D ay— P ictu res....................... .................
Iow a Investment Bankers Field D ay— P ictu res.....................................
New Home Construction 50% Ahead o f P rew ar....................... .............

37
41
44
47
49

INSURANCE
Headlines Y ou N ever See................................. ..............M artin L. S eltzer
Protection fo r P roperties in Y our M ortgage P ortfolio .........................
The Public Speeds to Its D eath............................................. J. H. H a rv ey
Five Guides to M ore Sales...................... .................................. ......................

51
55
57
59

STATE BANKING NEWS
M innesota News ...............................................
Twin City N ew s.........................................................................................
South Dakota N ew s............. ...... .................................................................. .
Sioux Falls N ew s..................................................
North Dakota N ew s...........................................................................................
Nebraska News ..................................................................................................
Lincoln Locals ............................................................................................
Omaha News ......................... ........ .............. .............................................

63
65
71
71

73
75
75

IOWA CONVENTION
The Convention P rogram ___ ________
83
Iow a Convention Com m ittees........................................................... 92 and 93
You W ill See Them at the Iow a C onvention............................................. 94
Bankers P lay Baseball.......... .......................
....100
Conventions ....................................................................................
114

IN THE DIRECTORS' ROOM
A Few Short Stories...........................................................

114

NORTHWESTERN BANKER
527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
CLIFFORD DE PUy
RALPH W . MOORHEAD
Publisher
Associate Publisher
HENRy H. HAYNES
BEN J. HALLER, JR,
MALCOLM K. FREELAND
Editor
Associate Editor
Associate Editor
ELIZABETH COLE
HAZEL C HADLEy
SADIE E. WAY
Advertising Assistant
Auditor
Circulation Department
PAUL W. SHOOLL
JOSEPH W. FRANKS
Field Representative
Field Representative
NEW yO RK OFFICE
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806
MUrray Hill 2-0326

DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review,
lowa-Nebraska Bank Directory.
Northwestern Banker, O cto be r, 1947

We quite agree with your concluding paragraph
in which you say, “ The American business sys
tem is being questioned in many places in the
world today. There is a responsibility that each
businessman act so as to strengthen the free en
terprise system. It is a responsibility he owes to
the system in which he believes.”

Obean W illia m Jl. K leity:
President, G uaranty T ru st Com pany o f N ew Y ork

Across the Desk
From I lio I'liblislier
„b e a n . c M e n n y R . ¡ ja h * i ± i o + t :
E xecu tiv e D irector, C om m ittee fo r E conom ic D evelop
m ent

You have made a real contribution to the prob
lems confronting the smaller business firms of
America in your “ Statement on National Policy7’
regarding the smaller stores, factories and indus
tries which make up 98 per cent of the firms op
erating in this country today.
Thus, of all the business units in the United
States, 98 per cent are small business and 2 per
cent are big business.
While there are many big business enterprises
in the nation, the real foundation of American
initiative and prosperity has originated with the
owners of small factories and manufacturing con
cerns.
This is true of the late Henry Ford, Thomas
Edison, Harvey Firestone, Walter Chrysler and
all the other men who have helped to make Amer
ica great. They first started from small begin
nings.
Therefore, today, Mr. Johnston, everything we
can do to help small business prosper is most
worthwhile.
In the banking field of a total of 14,845 banks,
the vast majority of them are in the smaller com
munities of the United States.

Northwestern Banker, O cto be r, 1947
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Federal Reserve Bank of St. Louis

We want to congratulate you on the recent
article, “ The Assault on Profits,” which appeared
in the Guaranty Survey, published by your very
hue institution.
The article is one of the best that we have
read in proving that profits do not firing on a
depression, because profits are spent and not
“ hoarded” .
The article in your Survey put it this w ay:
“ The greatest enemies of free enterprise in
America are not its avowed opponents but its
supposed friends who fail to understand its
essential conditions.
“ One of the most striking and significant fea
tures of the wage-price controversy that has
been under way since the end of the war is
the strangely fearful and distrustful attitude
toward business profits that seems to underlie and
pervade much of the discussion. This attitude
appears in statements by labor organizations, by
Government officials and agencies, by private
economists, and even occasionally by business
men themselves.
“ The fear of profits rests on the belief that
income in the form of profits and other returns
to capital, unlike income in the form of wage
and salary payments, is not fully and promptly
spent for goods and services. Too much of it
is saved. This portion, it is held, does not con
tribute its full share to the demand that is
necessary to maintain production and employ
ment at high levels. The higher profits are, the
greater is this supposed deficiency of demand.
And since production and employment cannot
be maintained unless the goods produced are in
demand, high profits are regarded as constituting
a positive force making for depression.
“ Now, apparently, the attack on profits, in
spired by the over-saving theory, having signally
failed to achieve its purpose before the war, is
being resumed in an effort to head off a hypo
thetical postwar depression before it begins.
“ It is an economic truism that money saved
is ordinarily spent as truly as is money laid out
for the purchase of goods for consumption. AVhen
savings are invested in corporate securities, for
example, they are in effect spent for the purchase

of industrial plant, equipment, inventories and
other assets. When they are invested in Govern
ment bonds, they are spent for national defense,
public works, the services of Government offi
cials and the other purposes for which the Gov
ernment spends money. When they are deposited
in banks or invested in life insurance, the same
sort of investment takes place at one move;
the investment is made by the bank or the in
surance company instead of by the individual
saver. When a corporation saves a part, of its
earnings instead of distributing it as dividends, it
does so for the purpose of expanding its operations
— that is, of buying new plant, equipment and
other forms of property for use in its business.”
No money, Mr. Kleitz, except that which is
actually taken in cash and put in a deposit box
or in some other place and horded is doing any
“ damage” to our economy, and as you know, the
amount of hording is almost negligible. There
fore, every encouragement should be given to
business, banking and every other enterprise to
make a profit, because those profits mean in
creased purchasing power, higher wages and a
better economy clear around the business circle.

(la h a k l:
V ice Presiden t, F irst Bank & T rust Co., Utica, N. Y .

The plan which you have worked out for a
simplified formula for use in making service
charges for New York banks deserves some atten
tion by banks throughout the country to see if
your formula is an improvement over the ones
now being used in various institutions.
As Chairman of the Committee making these
suggestions to the New York Bankers Associa
tion, your report points out that, “ It follows
that all monthly ‘flat charges’ and most so-called
‘ measured charges’ violate the fundamental prin
ciples which underlie the determination of fair
service charges.
“ Again, it would seem that to attain the maxi
mum degree of fairness and salability in service
charges, their computation should be made either
by means of a complete analysis formula, or by
means of a simplified formula the use of which
will produce approximately the same results as
complete analysis.
“ Although costs and earning rates vary among
banks, the committee does not believe that such
differences are wide enough to justify the extreme
variations in service charge rates disclosed by the
survey of the New York State Banking Depart
ment.”
In the proposed formula, your committee recom
mended the following plan :

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Federal Reserve Bank of St. Louis

“ 1. A maintenance rate to be determined by
each bank itself which will reimburse the bank
itself for account maintenance, monthly state
ment, supplies, etc.,
Plus
“ 2. a single ‘ average item rate’ to be deter
mined by each bank itself for each ledger entry
(debit and credit) except service charge debits,
and for each entry on each deposit slip, except
‘ on us’ cheeks deposited,
“ 3. An earnings
each bank itself of
each $100 or $50 of
deposit throughout
mum balance,

Less
credit, to be determined by
a certain number of cents for
the balance which remains on
the month; that is, the mini
Equals

“ 4. The service charge.
“ The committee believes that the formula when
applied to practically all accounts in banks in
small communities and to a substantial percentage
of accounts in other banks, will yield approxi
mately the same results as would a complete de
tailed analysis. It believes that by means of a
chart (revised to reflect each bank’s own earn
ing allowance, maintenance factor, and average
item rate) the formula can be applied with a
minimum of effort and expense.
“ Moreover, it feels that with or without the
aid of charts, the practical application of the
formula can be easily explained to and readily
understood by depositors, especially if bank offi
cers and employes have a clear conception of the
fundamental nature of the charges for checking
account services.”
The N o r t h w e s t e r n B a n k e r has always be
lieved that banks have a right to make a charge
of services rendered, but the mistake which some
banks have made is to charge a higher rate than
they should for services performed, and, second,
when the rates have been fair and legitimate they
have not always been properly “ merchandised
and sold” to the customers of the banks.
Most depositors are fair-minded and do not
want something for nothing, but service charges
must be intelligently and carefully explained at
all times if a bank wishes to continue the good
will of its customers as well as receiving income
for the duties which it performs for those cus
tomers.

Northwestern Banker, O c to b e r, 1947

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Federal Reserve Bank of St. Louis

THE HABIT OF THRIFT is still practiced by a consider
able portion o f the American public, as evidenced by the
crowded lobby of the Iowa State Bank and Trust Company of
Iowa City, pictured above. Ben S. Summerwill, president, says

savings and time certificates in the bank have increased 5 per
cent since March 1, and are up 6 V2 per cent since the first of
the year. Loans of all kinds in the Iowa State have increased
$200,000 since the start of 1947, an increase o f 20 per cent.

Sarinijs D eposits
A r e Still Inew asinif
S te a d y Uptrend Is Due to
Continued High LeveS of Business A c tiv ity
A NORTHWESTERN BANKER
SURVEY
Arc your savings deposits increas
ing, or decreasing, and in your
opinion what is the immediate
future for this department of
bank operation?
H. C. Hanson, cashier, State Bank of

Conger, Minnesota: “We have ex
perienced a steady growth in our sav
ings deposits ever since cessation of
hostilities.
The greatest increase,
however, is noted from JanuaiT, 1947,
up to the present.
“ It is our belief that savings de
posits will continue on the increase
until such a time when the public
feels that a fair price level has been
attained on all merchandise and dura
ble goods. Supply and demand is the
one factor which perhaps will be con
sidered more than anything else.”
Bruce Townsend, president, City Na
tional Bank, Clinton, Iowa: “ During

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Federal Reserve Bank of St. Louis

the war years our savings deposits
more than doubled, but the increase
has been slight during the past twelve
months.
We anticipate that this
‘leveling-off trend’ will soon lead into
a mild decline in this class of deposits.
“ It is likely that the savings ac
counts of our farmer customers may
continue to grow for a considerable
period.”
E. J. Chittenden, cashier, Farmers
Bank of Clatonia, Nebraska: “ Our
savings account has been quite station
ary for the past several years due to
the fact that we are reluctant to accept
large accounts in this department
while the present conditions exist in
the loaning field. We are now taking
only good sound loans and are unable
to procure many of these and the rate
on government bonds does not justify
paying interest on deposits and in

vesting in short term government
bonds. We are suggesting that our
customers purchase governments in
stead of using the savings account.”
W. N. Campbell, cashier, The First
National Bank, Cloquet, Minnesota:
“ The savings department in this bank
has shown a steady increase in deposit
total. As of January 1, 1946, our sav
ings total was $2,960,000; January 1,
1947, $3,370,000; and as of August 31,
1947, $3,430,000. We reached our peak
of saving deposit total March, 1947,
$3,465,000. From this peak our sav
ings balances gradually fell off with
some slight fluctuations to a low in
July, 1947, of $3,368,000. During the
past six weeks they have risen to the
total as shown above. The increase
has not been entirely in account bal
ances we had already held, as during
(Turn to page 44, please)
Northwestern Banker, O c to b e r, 1947

News a ari Views
OF THE BANKING WORLD

ESLIE N. PERRIN, executive vice

president and director of General
Mills, Inc., has been elected a di
rector of First National Bank of
Minneapolis. Mr. Perrin will fill the
vacancy on the board created by the
death of Franklin M. Crosby, General
Mills executive who had served fortyone years as director of the bank.
In 1934 Mr. Perrin was elected a
director of General Mills, Inc., and in
1936 moved to Minneapolis where he
has served as the milling firm’s execu
tive vice president since 1942. He is
currently a member of the executive
committee of General Mills, Inc., and
has been associated with the grain
trade since 1904.
I. A. Long, vice president of the
Mercantile-Commerce Bank and Trust
Company of St. Louis, recently pre
sented some of the rare mechanical
banks of his collection over Television
Station KSD-TV. In the course of the
interview Mr. Long demonstrated the
mechanical action of many famous
banks.
The value of such banks, he said,
depends upon their scarcity and not

particularly upon their age, and many
banks well known to collectors were
exhibited. The first cast iron me
chanical banks were made in 1869,
some of which reflect various phases
of American life until the early part
of this century. There are collections
of these banks in several museums,
and outstanding private collectors
have included the late Henry Ford
and Walter P. Chrysler.
Chester I). Seftenberg, vice presi
dent and trust officer of the First and
American National Bank of Duluth,
said that Federal and State “ Death”
taxes may be increased and are seldom
reduced or avoided by joint tenancy
or co-partnership, speaking before a
group of Minnesota accountants. He
suggested that accountants advise
clients to re-examine joint property
holdings to determine whether the ar
rangements accomplish what is de
sired. He said he was referring not
only to “joint tenants with right of
survivorship but also to other types
of co-ownership such as joint bank ac
counts, joint building and loan asso
ciation accounts, and Federal savings
bonds.”

True I). Morse, president of the
Doane Agricultural Service, Inc., be
lieves country banks should have real
dirt farmers on their boards. Speak
ing before a group of Indiana bankers
recently he said:
“ The term ‘dirt farmers’ is used in
an effort to distinguish between farm
ers and merely land owners. Farm
ers know the difference. You want
men who are out on the farm and
working among farmers day after day.
“Have as many farmer directors as
the proportion of your total farm busi
ness represents.
“Both younger and older farmers
should be on the board.
“ Make selections so that each major
type of farming will be represented.
“ See that each major farming area
is represented by a farmer director.”

Farmers have more purchasing
power today than a year ago, but city
dwellers’ “real income” is decreasing,
the monthly Investors Syndicate sur
vey reveals. “ Real income” is the
relationship of revenue to living costs.
(Turn to page 46, please)

Com pletes .TO Years ai llanltinf/

WHEN A BANKER completes fifty years in the banking
business he deserves the congratulations o f one and all. And
when those fifty years have all been with the same bank in
the same town, and just for good measure on the same corner,
that calls for a little celebration.
T h a t’ s just what the many friends o f C. H. Haesemeyer did
recently when he observed his fiftieth year in banking with
the Union Trust and Savings Bank of Stanwood, Iowa. Mr.
Haesemeyer is now president and one son, Carl H., is cashier.
Another son, W. L. Haesemeyer, is president of the Central
State Bank in State Center. In honor of the occasion, bankers
from many points in Iowa and from Chicago and other areas
attended an anniversary dinner in Clarence, Iowa. More than
80 guests were in attendance.
In the pictures above, a few of those attending the dinner
are shown. Reading from left to right in each picture, they
Northwestern Banker, O cto be r, 1947

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are: Les Siems, assistant bond manager, Northern Trust Com
pany, Chicago; Bill Whitman, assistant vice president, American
National Bank, Chicago; C. H. Haesemeyer; Bill Kurtz, assistant
cashier, American National Bank, Chicago; Leo Wegman, presi
dent, Citizens Savings Bank, Anamosa; E. S. Pitman, cashier
Central State Bank, State Center, Iowa, and F. C. Brown, vice
president Central State Bank.
Mr. and Mrs. C. H. Haesemeyer.
Earl Elijah, president Clarence Savings Bank, Clarence;
Edgar H. Jorgensen, cashier City National Bank, Clinton;
J. B. Vaughan, vice president Bennett State Bank, Bennett;
L. D. Murfield, cashier Citizens Savings Bank, Anamosa; John
Carville, cashier Mechaniesville Trust and Savings Bank; N. P.
Black, Iowa superintendent of banking; Les Siems and Bill
Whitman.

BANKS USE VARIOUS MEANS of
explaining and ju stifying their service
charges to customers.
At the right,
Emmett E. Johns, vice president Cen
tral National Bank and Trust Company
o f Des Moines, is giving a personal
explanation to a customer o f this im
portant feature o f bank operation.

H ow Our
iJ
F ret
A bout Sorrier
W hen Bank Patrons H a v e Th ese C harg es
Explained Th ey A cce p t Them W ith Little Com plaint
A NORTHWESTERN BANKER
SURVEY
Are your customers agreeable to
your service charge schedule, and
how did you "sell" them on such
charges?
Millard M. Martin, cashier, Security
State Bank, Allen, Nebraska: “The
bulk of our customers seem agreeable
to our service charge. There is of
course the occasional flellow who
feels any charge made by a bank is
'robbery.’ There are some banks in
the territory who apparently make no
service charge, and this causes some
dissatisfaction among our customers,
but we seldom experience any ques
tion of our charges or objection to
them.
“Not having a local newspaper for a
number of years, we began the issue of
a monthly bulletin ‘Security Notes’
which we mail to every family doing
any business of any kind with our
bank. This mailing list is kept up to
date monthly. In this bulletin we
have endeavored to show how a bank
operates; why it costs money to fur
nish supplies, bookkeeping service,
checking account service, etc., to
patrons; reasons for pro rating cost
of service to the person using that
particular service, etc. We dwell, not

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on the ‘excuse’ for charges, but rather
upon the vast amount of service and
help the customer receives for the few
cents per item he must pay.
“ I believe this bulletin has done
much to achieve what small measure
of success we have attained in making
the service charge an agreeable cost
for customers.”
Here are two excerpts from a re
cent “ Security Notes” bulletin sent out
by the Security State Bank:
“Meat prices go up; drug prices
are higher; ice cream, clothing, gro
ceries, fuel, taxes, stationery, hard
ware, lumber, and labor all can raise
in price and business goes on as usual.
People expect it. But if a bank charge
is increased 2c per item you would
think an atomic bomb had landed.
Don’t people know that a bank has
expenses and that those expenses are
higher the same as those for the farm
er or other business house?”
“ Here is how the service charge is
figured each month:
“ The cost of handling your account
is figured at a fiat charge of 25c plus
4c per item debited to your account
and the foreign checks deposited.
From this expense cost is deducted the

earnings credit of 10c per $100 of the
amount of your lowest balance during
the month. The remainder if any is
the amount of your service charge.
(The 10c credit per $100 is equivalent
to 1.2 per cent interest on your de
posit.)
“On foreign checks cashed by de
positors a flat charge of 5c per check
is made to defray the expense of col
lecting the check and the cost of pro
tection for the money carried on hand
for this purpose.”
Edwin Briekson, president, Adrian
State Bank, Adrian, Minnesota: “To
start with, we ran an ad in the paper.
This was followed by a circular letter
and we explained the charge to custom
ers who asked about it. There is very
little complaint, in fact while occasion
ally we hear of one who may have
taken his business to some adjoining
town that does not charge, or one who
carries the cash, on account of the
service charge, we could not think of
going back to making no charge. Com
plaints are very, very infrequent.
With such increasing costs, it would
seem our charges are not now high
enough.”
(Turn to page 48, please)
Northwestern Banker, O c to b e r, 1947

*YfO to School99 Sessions to
F eatu re

F . A m A,
0

M any Top-Notch Sp ea k ers on Fin an cia l A d v e rtise rs
Annual M eeting Program
industry execu
tives, public opinion analysts
and merchandising leaders will
share the platform with bankers at
the coming 32nd annual convention of
the Financial Advertisers Association,
Sunday through Thursday, October
5th to 9th, at the Hotel WaldorfAstoria, New York City, according to
the program prepared under the lead
ership of Swayne P. Goodenough, pres
ident of the Association and vice presi
dent o f the $237,000,000 L in c o ln
Rochester Trust Co., Rochester, N. Y.
Action on the proposal to change the
name of the F. A. A. to the Financial
Public Relations Association, is high
on the agenda for the meeting, the 30odd business sessions of which will be
devoted to study of phases of public
opinion relating to banking and of
techniques of dealing with the forces
of public relations, customer relations,
employe relations, advertising and
’publicity, Which shape public opinion,
favorably or unfavorably, for banks at
all times, Mr. Goodenough points out.
The convention is slated to see the
elevation of Robert Lindquist from
first vice president of the Association
to- , president, to succeed Mr. Goodenough. Mr. Lindquist is vice presi
dent of the $57,000,000 La Salle Na
tional Bank of Chicago, and chairman
of the General Arrangements Commit
tee for the convention.
Also to be advanced in the annual
election one step closer to the national
presidency are the second vice presi
dent, Allen Crawford, vice president,
Bankers Trust Co., Detroit, and the
third vice president, John deLaittre,
vice president and treasurer of the
Farmers & Mechanics Savings Bank of
Minneapolis, while a new third vice
president is to be elected to the presi
dential line. Chester L. Price, adver
tising and publicity manager of the
City National Bank & Trust Co., Chi
cago, is treasurer of the Association,
while Preston E. Reed, of the Asso
ciation’s Chicago headquarters office
is the appointive executive vice presi
dent.
The convention attendance may
range over 600 and constitute an Asso
ciation record, due to the attractions
of a New York City meeting along with
the fact that the American Bankers

d v e r t is in g

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Association’s annual convention im
mediately precedes the F. A. A. meet
ing at the Waldorf-Astoria, and op
erating executives will be able to stay
over for the F. A. A. discussions.
The program committee under Mr.
Lindquist consists of seven F. A. A.
members.
• General program chairman is John
L. Chapman, trust officer, City Na-

R O B E R T L IN D Q U IS T
General Arrangem ents Chairman and W ill
Be N ew F .A .A . President

tional Bank and Trust Co., Chicago.
Clinic session chairman, responsible
for 12 round-tables at which bank pub
lic relations problems will be dissected,
is John N. Garver, vice president,
Manufacturers & Traders Trust Co.,
Buffalo, New York.
Departmental public relations ses
sion chairmen are: Commercial bank
ing—L. E. Townsend, vice president,
Bank of America, N. T. & S. A., Cali
fornia, himself a former F. A. A.
president. Trust development—May
nard C. Conklin, trust officer, Fifth
Third Union Trust Co., Cincinnati.
Savings Bank promotion—Robert L.
Knight, assistant public relations offi
cer, Howard Savings Institution, New
ark, New Jersey. Consumer credit—
Adolph F. Klein, executive vice presi
dent, Wayne Oakland Bank, Royal
Oak, Michigan. Bank personnel rela

tions—S. H. Chelsted, vice president,
Peoples First National Bank, Pitts
burgh.
Hotel and hospitality requirements
at the New York end are in the charge
of the New York Association of Finan
cial Advertisers of which P. Raymond
Haulenbeek, executive vice president
of the North River Savings Bank, is
chairman, and a local arrangements
committee headed by Robert W.
Sparks, former F. A. A. president who
is vice president and treasurer of the
Bowery Savings Bank, as general
chairman, and Harold Marshall, assist
ant vice president, Bankers Trust Co.,
New York City, as executive commit
tee chairman.
The convention will open with an
“early birds” party on Sunday eve
ning, October 5th, and close with the
banquet and installation of officers
October 9th.
Dr. Claude Robinson, of Opinion
Research Corporation, Princeton, New
Jersey, and James M. Wallace, vice
president of the N. W. Ayer & Sons,
Inc., advertising agency, will present
results of a survey of American post
-war public opinion regarding banks
and banking, and an interpretation of
these facts at the opening key-note ses
sion of the convention.
The survey on which Dr. Robinson
and Mr. Wallace will speak is based on
national opinion research just com
pleted for the Association of Reserve
City Bankers.
Dr. Robinson will
present the facts, and Mr. Wallace will
discuss what should' be done about
them in national and local public re
lations.
In the eight business sessions and
26 departmental and clinic sessions
which will pack the convention Mon
day through Thursday, discussions
will be related to the problems pre
sented by Messrs. Robinson and Wal
lace as they apply to the practical
work of bank public relations for in
dividual banks, trust companies and
financial houses.
Other session speakers include:
James W. Allison, immediate past
president of the trust division of the
American Bankers Association, and
vice president in charge of trusts of
the Equitable Trust Co., Wilmington,
Delaware, on “ The Trust Department’s

Contribution to Bank and Commu
nity.”
Chester Gilbert, manager, retail
finance division, Westinghouse Elec
tric Corporation, Pittsburgh, on “Effect
of Installment Sales on Public Rela
tions.”
Ody H. Lamborn, president, Lamborn & Company, who is also president
of the New York Coffee and Sugar Ex
change, executive director of the
Sugar Research Foundation and a di
rector of the Continental Bank &
Trust Co., New York City, on “A Bank
Director Looks at Banks.”
Dr. James F. Bender, of the National
Institute of Human Relations, on “Hu
man Relations in Public Relations.”
Four top-flight advertising execu
tives will discuss advertising prepara
tion from initial steps to finished prod
uct in the 9:30 to 10:30 a. m. daily eyeopener “F. A. A. School” sessions.
These men, all recognized experts in
their line among New York advertis
ing industry men, are in the order of
their appearance:
Frederick B. Ryan, Jr., president,
Ruthrauff & Ryan, advertising agency
(whose many accounts include Rinso,
Chrysler-Dodge, Wrigley, Spry, Life
buoy, Goodall-Sanford, American Air
lines, Old Forester, “blue coal” and the
Savings Banks Association of New
York), who will discuss “Planning
Your Advertising.”
Walter Weir, president of Walter
Weir Agency (whose accounts include
New Haven R. R., Federation of Rail
way Progress, Wyler Watches, Parf u m s Adrian and Metropolitan Group
Gravure), and who is rated as one of
the three top ad copy writers in the
country, who is slated to talk on “Ad
vertising Text and Copy.”
Sanford Gerard, art director with
Lennen & Mitchell (whose accounts
include C a lv e rt R eserv e, w h ose
“ switched to” campaign has been
rated the highest reader-attention-perdollar ad series in history; Old Gold,
Veedol-Tydol, Lehn & Fink’s Lysol,
Pebeco, Dorothy Gray, and the Scripps
Howard Newspapers), who will have
“ Advertising Design, Layout and Art”
as his F. A. A. school session topic.
Ben Dalgin, director of art and re
production, New York Times, and
author of “Advertising Production”
published in 1946 by McGray-Hill and
now in its second edition, who will
cover “Advertising Production and
Media” at the final school session
Thursday morning, October 9th.
In addition to this backbone of gen
eral and school sessions, the F. A. A.
will have top-rank speakers at their
annual luncheon Tuesday noon and
their annual closing banquet Thursday
evening at which new officers will be
installed.—The End.

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A b o u t Itan h ors You K n o w

D AVID T. BEALS
President, Inter-State National Bank, Kansas City, Missouri
“ Also president o f a 250,000 acre ranching industry, one o f the w orld’ s largest”

ACK in 1912, David T. Beals completed his final year of college studies at
Y ale L niversity, paused at graduation exercises long enough to be pre
sented with his Bachelor of Science degree, then headed west to his native
Kansas City, Missouri. In the 35 years since he left Yale, David Beals has
risen from messenger to president of the Inter-State National Bank of Kansas
City. I his fine bank holds a prominent position in the great livestock center
at Kansas City and now has deposits of about $60,000,000.

In addition to being chief executive at the Inter-State National Bank, Mr.
Beals is president of the Callaghan Land and Pastoral Company, Laredo,
Texas, a 250,000 acre ranch which is one of the largest in the country. It
started in the middle 1800’s as an 80 acre ranch. Part of the story of the
Callaghan is the steady and determined financial and management policies
which Mr. Beals instituted when, as a young man fresh out of college, he took
charge of affairs in connection with the ranch, which was badly involved
financially. Mr. Beals’ father had died in 1910, two years after acquiring the
property and the elder Beals partner had died in 1912. Mr. Beals followed
the policy of leaving supervision of the ranch to a manager born and raised
in that type of work and this policy has paid dividends, for today it is free
of debt and operating on a profitable basis. It is devoted exclusively to the
production of cattle.
Mr. Beals was born in Kansas City on September 5, 1889. He attended
Central High there and was at Cornell University one year before enrolling
at Yale. In 1913 his first job with the Inter-State National Bank was as a
messenger. He then advanced to bookkeeper, teller, assistant cashier in 1916,
vice president in 1920 and was elected president in 1943.
I his month Mr. and Mrs. Beals are celebrating their 34th wedding anni
versary, having been married October 4, 1913. They have one son, David
T. Beals, III.
(Turn to page 30, please)
Northwestern Banker, O cto be r,

1947

THE DEMAND for consumer credit is increasing, according to
statements from bankers. Above left are deep-freeze units,
mechanical refrigerators, sink units, and mechanical ironers,

all on the “ w anted” list-—the automatic water heaters pictured
on the left w ill find places in homes not heretofore equipped
with this service.

Consum er Credit is Increasing
H igher Production Bringing H igher Purchasing Volume
A NORTHWESTERN BANKER
SURVEY
Has the demand for consumer credit
increased, or decreased, in your
community? Why?
Paul H. Huston, vice president, Peo

ples Savings Bank, Cedar Rapids,
Iowa: “The demand for consumer
credit has increased as evidenced both
in the volume of loans made and ap
plications received. Most of the appli
cations are for the purpose of con
solidating existing debts and obliga
tions which would indicate that in
come is not keeping pace with rising
living costs. Next in importance is
for the purpose of purchasing second
hand cars or repairing old cars which,
of course, is the result of inability to
obtain new cars or to finance them
under the terms of Regulation W.”
Eber V. Flint, cashier, Andrew Sav
ings Bank, Andrew, Iowa: “ There
has not been any decided change.
There has been a trend toward greater
buying and spending but the average
farmer or small town business man
has a few war bonds or something to
sell.
“ I rather shudder to think what
might happen, should the supply sud
denly catch up. How much cash or
proceeds of credit will the people be
willing to spend for goods or invest
ments?
“ I also wonder what kind of a pro
gram we can work out that will stem
and insure stability, should the de
mand for credit suddenly skyrocket?”
Paul W. Bergien, cashier, Alex
andria State Bank, Alexandria, Minne

Northwestern Banker, Octo ber, 1947
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Federal Reserve Bank of St. Louis

sota:
“The demand for consumer
credit has increased here at our bank
and in this community. We feel the
reason for this is that the type of
customer demanding this credit has
consumed the savings they had and
are now buying articles which are
available now that were not available
some time ago.”

eventually enjoy some additional vol
ume.”

E. S. Kiernan, cashier, The Alton
Savings Bank, Alton, Iowa: “ Demand
for consumer credit has increased
steadily since the end of the war. Our
volume does not as yet approach the
pre-war volume, but appears to be in
creasing, as goods become available.
“The reasons for the increase are
several—exhaustion of war-time sav
ings, universal demand for new stoves,
refrigerators, cars and other appli
ances, strong demand for remodeling
and improving old homes.
“Our people want better living con
ditions and more conveniences in the
home, and are willing to go in debt for
them.”

John W. McWhirter, cashier, State
Bank of Allison: “ In this rural terri
tory the demand for consumer credit
was practically non-existent during
the war years and we have been un
able to see any return to this form of
financing. This town and its trade
depend on agriculture and by-andlarge they have been self financing up
to this time.”

Leo J. Wegman, president, Citizens
Savings Bank, Anamosa, Iowa: “Way
back when—we tied into consumer
credit field and acquired substantial
totals; which proved satisfactory and
profitable with the result that this
line of financing has proven rather
stable, with only slight shrinkage in
total volume during the war. So that
now we do not encounter any increase
or decrease in volume; the total re
maining rather stable. However, as
auto production increases we should

Clay W. Stafford, president, Ames
Trust and Savings Bank, Ames, Iowa:
“ Consumer credit demand has in
creased moderately in this commu
nity. This increase, in our opinion, is
due to the increased availability of
merchandise.”

Going Up
Highlighted by an unprecedented in
crease in member banks and “National
Auditgrams” circulated, the end of the
twenty-third year of The National As
sociation of Bank Auditors and Comp
trollers saw the membership spiral to
the highest peak in its history.
The total member banks, 2,713, are
the results of a campaign that began
at the Association’s National Conven
tion in Oklahoma City last October
and gained impetus throughout the
year largely through the efforts of the
district directors and state vice presi
dents, under the capable leadership of
the chairman of the Organization Com
mittee, Mills B. Lane, Jr., who is the
first vice president of NABAC.

AIRM AIL- Coast to Coast
RAIL MAIL-WIthin 500 Milss

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Federal Reserve Bank of St. Louis

★
Our central location and mail facilities enable us
to provide quick service on your collection and
transit items.
★ Evening departures of air and rail mail give over
night delivery to east and west coasts, and to points
on both borders.
The Omaha National Bank by virtue of these advan
tages has developed unusual speed and efficiency
in handling items for correspondents.
Inquiries are invited.

Member, Federal Deposit Insurance Corporation
Northwestern Banker, O cto be r,

1947

INSTALLMENT LENDING has become an important part of bank operation, and the picture above portrays
the arrangement of the Installment Loan Department of the First Trust and Savings Bank o f Davenport, Iowa, under
the management of T. L. Vinyard, assistant vice president. Mr. Yinyard says this department of his bank is doing
a volume of $1,500,000 per year. At present the department, has $650,000 installment loans outstanding. In July the
department obtained 219 new loans, had 138 loans paid up, with a total outstanding of 1,196.

Raa tiers 117## N ot R ela x
1'o a t r o t o f
tn s ta lh a e a t
Good Judgm ent WÌ3I Continue to Be Guiding Facto r
A NORTHWESTERN BANKER
SURVEY
, the widely cussed
and discussed Congressional curb
placed on installment buying dur
ing war years, is finally being checked
off the books November 1st. Pro
ponents of Regulation W hurled “in
flationary” charges against the move
to have this control canceled. C. W.
Bailey, retiring president of the
American Bankers Association, in the
February, 1947, N o r t h w e s t e r n B a n k e r
(page 16), called for the abandonment
of this restriction and summed up the
bankers’ postwar outlook on install
ment credit and buying when he said:
“A free yet sound flow of consumer
credit can be maintained only if bank
ers and business men are free to use
their own best judgment, based on
their intimate knowledge of the bor
rower and local conditions.
“While the stand we are taking on
Regulation W might indicate a more
aggressive lending attitude, its main

e g u l a t io n w

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object is to do a better and more equi
table job. As a matter of fact, loose
lending, dangerous at all times, is now
particularly dangerous. We can never,
as bankers, permit ourselves to be ac
cused of overextending the consumer
or keeping him in a state of perpetual
debt. Consumer borrowing, guided
properly, is a constructive operation
and one of immense benefit to the con
sumer. This type of borrower in many
cases needs counsel as much or more
than he needs credit. It is our re
sponsibility to see that he gets the
right kind of advice always.”
To find out how bankers throughout
the midwest feel about the abolition of
Regulation W and its consequences on
installment credit demands, the N o rth
w e s t e r n B a n k e r has completed a sur
vey on this subject and found that
bankers will continue to exercise the
same care in making credit loans as
before, and that no appreciable de

mand for excess credit is to be ex
pected just because controls have been
removed. The question asked was:
What do you think will be the
effect on business Avhen all federal
controls on installment credit buy
ing are removed in November?

The bankers’ answers were as fol
lows:
H. E. Iverson, cashier, Farmers
State Bank, Canton, South Dakota:
“Now that price controls have been
generally discarded, it is only natural
that federal control of installment buy
ing should also be discontinued.
These controls have served their pur
pose, and should serve as a reminder
to all loaning agencies that they keep
their loans within a safe percentage
of the real value of the article sold.
As a general rule, we feel that the
purchaser should always have an
(Turn to page 45, please)

ONE OF 18 TEST
THAT SAFEGUARD
UNIFORM QUALITY

Hammermill Sa

¿fé*-

SAFETY
IS THE O N E
C H EC K

P A P ER

is the labora
tory instrument which measures
and tests precisely the fold in g e n d u r
a n c e o f Hammermill Safety Paper—
making sure that in toughness and
strength every run o f paper meets
Hammermill’s exacting standards.
N othing is left to chance when
Hammermill Safety is being made.
There are 18 laboratory tests that
safeguard the uniformity o f this fine

MADE CO M PLETE
IN

O N E M ILL . . .

EV ER Y

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UNDER

IC T U R E D A B O V E

check paper. That is why Ham mer
mill Safety is so uniform, always
easy to write on, why it gives un
varying customer satisfaction, lends
prestige and dignity to your custom
er’s checks.
For samples o f Hammermill Safe
ty, just write on your bank letter
head to Hammermill Paper C om
pany, 1513 East Lake R oad, Erie,
Pennsylvania.

O N E U N IFIED C O N T R O L

0 1 ‘D

ìa h A w

« '

¡Jo/W1

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

Northwestern Banker, O c to b e r, 1947

LEGAL

Can an O fficer C onvey Corporation
P ro p erty io Satisfy Siis tSebts?
Does Such Conveyance Bind the Corporation?
This and Other Timely Legal
Questions Are Answered
by the
LEGAL DEPARTMENT

The president of a Nebraska
corporation which had a number of
stockholders was indebted personally
to his bank in the amount of $5,000.
Without the approval of the hoard of
directors or the stockholders he con
veyed to the hank certain property of
the corporation worth that amount to
satisfy his indebtedness.
Was the
conveyance binding on the corpora
tion?

No. The property of a corporation
constitutes a “trust” fund in the hands
of its officers and directors, and a trans
action by one of them whereby the
corporation’s property is diverted
from the corporation to his own use
and benefit will not be upheld. An
agent cannot use the property of his
principal for private gain and this
rule is also applicable to managing
officers of a corporation.

Q . A North Dakota bank made a
$5,000 loan to Black and Smith, two
individuals, and took their joint and
several promissory notes for that
amount. The note became outlawed
by the statute of limitations. Smith
thereafter acknowledged the indebted
ness, made a partial payment thereon,
and agreed to pay the balance due on
it. Since the note was a joint and sev
eral one, did Smith’s revival of the
instrument also operate to revive it as
to Black?
No. A payment on a promissory
note by a joint maker does not affect a
defense of limitations available to the
other joint maker. The fact that Black
and Smith were co-makers of the note
did not create an agency relationship
that would permit Smith, as Black’s
agent, to bind Black to pay the note
that had been outlawed insofar as he,
Black, was concerned.

Q. Suppose that Black, instead of
remaining silent after the note be
came barred, had written the bank to
the effect that he was sorry lie could
not pay hut would be willing to renew

Northwestern Banker, O c to b e r, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

the note the best he could. Would
such have been sufficient acknowledg
ment of his indebtedness to remove
the bar of the statute of limitations?

No. A promise inferred from a
written acknowledgment of a debt
must clearly and fairly imply that
the debtor promises to pay it and if
the debtor merely intimates that he
will pay the debt if certain condi
tions which he mentions are fulfilled
and retains the power to determine
whether he will pay under such cir
cumstances, the promise is not a suffi
cient acknowledgment to remove the
bar of the statute of limitations. The
North Dakota Supreme Court so held
in a recent decision.

. Norcross, an Iowa banker, was
appointed guardian of an aged friend
of his who had become incompetent to
manage his affairs. The guardian duly
carried out his obligations and his
ward subsequently died. Shortly be
fore his death, the banker had under
serious consideration a deal that would
have been very advantageous to his
ward, but did nothing specific with
reference to it. Could the banker, as
guardian, enter into and complete the
deal on behalf of his ward after the
ward’s death?

No. Upon his ward’s death the
powers and duties of a guardian cease,
except that the guardian has the duty
to report and account to his ward’s
heirs for assets which have come into
his hands.
The guardianship con
tinues only for the purpose of such
accounting and to enable the guardian
to turn over the assets in his hands to
the proper person.

Q . Brock well leased for five years a
tract of land on Lake Michigan in
Michigan to Lamberton, an Illinois
banker, for a summer house. The
lease was signed by Broekwell but not
Lamberton. Under Michigan law, a
lease of land for a longer period than
one year is void unless in writing and
signed by the lessor or lessors. Did
the fact that Lamberton did not sign
the lease make it Aoid?

No. The law in Michigan does not
impose a requirement that written
leases of land for more than one year
must be signed by the lessee or lessees
in order that they will be valid and
binding. The signature or signatures
of the lessor or lessors as the case may
be are sufficient to satisfy statutory
requirements. The Michigan Supreme
Court so held in a recent decision.

A Nebraska banker wrote a mo
tion picture photoplay which was
copyrighted by him. It was produced
and made into a successful movie.
Another movie concern infringed on
the copyright, and the banker sued it
for damages and other relief. As an
incident to the suit it was suggested
that he deliberately delay his prose
cution because he might, by such ac
tion, build up his damages based on
the profits received by the infringer.
Was this suggestion a good one?

No. A copyright owner may not de
liberately delay his prosecution for
infringement and thereby speculate
without risk with another’s money to
determine the success of the exploita
tion of his copyright. Such owner
must not be guilty of laches in moving
to protect his copyright.
<

Mortinson, a Wisconsin resident,
was seriously ill and knew the serious
ness of his condition. The day before
he was to go to a hospital he went into
the office of Borden, his home-town
banker and friend of many years
standing, and left on Borden’s desk a
package containing some cash, a
check, and certain postal saAings and

Speeá..-Withless Effort
•wtowrowfifolTellers'

LAFAYETTE NATIONAL BANK, LAFAYETTE,
INDIANA, one of hundreds of progressive
banks throughout the country that have
mechanized their window service with Bur
roughs Commercial Teller’s Machines, has
this to say: "Definitely speeds window serv
ice . . . customers like neatness and speed
with which transactions are handled . . .
handle more depositors per teller than ever
before . . . recommend plan to any bank
wishing to improve its service.”

Into the wastebasket g o commercial passbooks,
pens and ink, stamps, pads and blotters. Into the
cage comes the Burroughs Commercial Teller’s
Machine. The results: Customers praise the
faster, better service; banks gain increased g o o d
will and favorable publicity; lines and lobby
congestion are decreased as much as 30 %;
internal accounting is speedier, more accurate,
better controlled!

»
The Burroughs Commercial Teller’s Machine
handles all types of transactions at the touch of a
few keys. It issues printed, registered deposit
receipts in place o f passbooks, keeps a record of
all cage transactions, and speeds the flow of

WHEREVER

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

THERE’ S B US IN ESS

THERE’S

items to the proof department by automatically
accumulating cash-in and cash-out totals.
Hundreds of banks throughout the country —
and the number is increasing daily— are already
enjoying the benefits of this revolutionary
improvement in customer service. W hy take a
chance on being the last in your community to
offer this modern, mechanized service? Call your
local Burroughs office today for full details. See
how the machine operates . . . how easily other
banks have made the change-over . . . how
enthusiastic tellers are about this mechanized
service . . . how you can capitalize on the publicity
opportunities it affords.

Burroughs á á
J r jf

JJf

THE MARK OF SUPERIORITY
IN MODERN BUSINESS MACHINES

Northwestern Banker, O c to b e r , 1947

corporate stock certificates. Mortinson
told Borden that he should keep the
package and that, if he, Mortinson, did
not come hack, it was his. Mortinson
died two days later in the hospital.
Was Borden entitled to the contents
of the package?

FOCAL POINT
!
:

Yes, according to a recent Wisconsin
Supreme Court decision. The holding
in that case was that a valid gift causa
mortis is made where a deceased,
while seriously ill with a disease
which results in his death and with
knowledge of the seriousness of his
condition, hands property to a donee
and states that the donee is to keep
the property and that, if the deceased
does not come back from the hospital,
the donee is to have it.

Q . Bradley died in Minnesota leav

[
:

Wisconsin’s Bank for Banks
Tbis outstanding bank — established
in 1853 — serves as M ilw aukee de
pository for over 85 per cent o f all
the hanks in W isconsin!

i
ï
:

W ith unparalleled correspondent “ coverage’ of
Wisconsin, the First Wisconsin National Bank
of Milwaukee is not only “ the point of prompt
collection” for Wisconsin checks and drafts, but
also the focal point for unique Co-ordinated
Regional Service keyed to the needs of national
corporations operating branches, sales divisions,
distributorships, retail outlets or other units in
this area.
Bankers as well as business executives are invited
to write for further information.

FIRST WISCONSIN
NATIONAL BANK
o f M ilw a u kee
MEMBER

THE

FEDERAL

Northwestern Banker, O c to b e r, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

D EP O SIT

I N SU R A N C E

CO R PO R AT IO N

ing his estate, which was a substantial
one and which produced regular in
come, in trust for his children for a
certain period of time. A trust com
pany was named trustee and it was to
pay the income to the children during
the period designated.
There was
nothing in the will indicating that the
children should not receive the income
from the date of Bradley’s death and
he had no debts. Should the income
he paid to the beneficiaries from that
date?

Yes. In the absence of an expres
sion indicating a contrary intention,
the beneficiary of the income from a
fund or property bequeathed or de
vised in trust is entitled to it from the
date of the testator’s death. This is
a basic rule of trust law which the
Minnesota Supreme Court had occa
sion to reiterate in a recent decision.

Hopewell was insolvent and in
financial difficulties. His aunt con
veyed certain South Dakota property
to him in trust for his two minor
daughters for a nominal considera
tion. His creditors sought to impress
a lien on the property to pay their
claims on the theory that it was a
fraud as to them. At the trial they
contended that the burden of proof
was on Hopewell to show that he was
not the true owner and that the conveyance was a bona fide one. Should
they prevail?

No. In some instances transfers
between relatives must be shown to
be bona fide by the parties thereto
when questioned by creditors. Such
is not the case in this instance, how
ever, as the aunt had the right to make
a gift of land to her grandnieces or to
sell the land to them at less than its
actual value as she saw fit. She was

-A

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

Warehouse Receipts
L oans Against Inventories
Inventories are valuable assets and they constitute the repaying
power of many manufacturers, processors, producers and dealers.
Where inventories are present, banks have splendid opportu
nities to employ profitably their resources through new and
larger loans based on them . . . .
And when secured by our Warehouse Receipts inventory loans
are sound.

Long experience, integrity and responsibility stand

behind our operations . . . .
For inventory collateral there is no substitute for a W arehouse
Receipt issued by an experienced bona fide Public W arehouse
Company . . . .

W ith o u t o b lig a tio n , our r e p r e s e n ta t iv e w ill call on
r e q u e s t and exp la in h ow our F ie ld W a re h o u sin g s e r v
ice p r o v id e s c o lla te ra l on in v e n to rie s on the o w n e r's
lo cation . . . .

$ a u l term inal 3SSarei)ouöe Co.
ST. PAUL, M IN N .
— Other Offices —

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515 low a-D es Moines National Bank Building
DES MOINES
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Northwestern Banker, O c to b e r , 1947

under no obligation to pay her
nephew’s debts and she neither de
frauded nor assisted in defrauding her
nephew’s creditors by the conveyance.
The South Dakota Supreme Court so
held in a recent decision in which a
deed was declared valid in circum
stances similar to those above out
lined.

any standards for determining eligi
bility for pensions.
Neither did it
give its employes any vested interest
in the trust estate as individuals or
members of a class. In computing net
income for federal income and excess
profits tax purposes should the bank
be permitted to deduct a percentage
of the amounts transferred by it to
such trust?

entitled to the deductions outlined.
One claiming a deduction for tax pur
poses must bring himself within the
precise terms of the statutory provi
sion permitting the deduction. This
was not done in this case because the
plan was not reasonable but was de
pendent almost entirely on dealings
solely within the discretion of the
bank.—The End.

No, according to a recent federal
Circuit Court of Appeals decision.
In so holding the court found that the
pension plan was not a reasonable one
and that the bank was, therefore, not

B A N K ER S YO U K N O W

. A bank established a trust with
itself as trustee for the payment of
pensions to its officers and employes.
In doing so it retained complete and
unqualified control over what pensions
should he paid and did not establish

FARM INCOME
affects the PROFITS
of your BANK
Study the economic forces affecting farm income. . . . Advise
your farm clients wisely on which enterprises are the safest and
most profitable. . . . Make sound farm loans by keeping in touch
with prices, markets, shortages and surpluses ahead, guided by
the

DOANE
A G R IC U LT U R A L DIGEST
Edited by the oldest and largest farm management and ap
praisal organization, it was prepared originally for our own
farm managers—to give concise advice on markets, changes,
trends and new developments in agriculture. Demands from
business executives and farm owners caused us to accept our first
public subscriptions eight years ago.
The Digest service consists of a 400-page cumulative refer
ence volume, in strong loose-leaf binder, kept up to date by
twice-monthly releases interpreting current trends. . . . The cost
of the service is only $15 the first six months (or $20 the first
year), and $10 per year thereafter.

W r ite f o r Fre e Sa m p le R e l e a s e s
More than
1 ,0 0 0

BANKS

are now subscribers.
In the farming state
of Iowa, for example,
over 26% of the banks
use the Digest regu
larly.

DOANE
Agricultural Service, Inc.

Northwestern Banker, October, 1947

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

Box 603, 206 Plymouth Building
DES MOINES 9, IOWA
I Home Office: St. Louis, Mo.l

(Continued from page 21)
Besides his banking and ranch con
nections, Mr. Beals is president of the
Inter-State Cattle Loan Company; is
a trustee of the Mutual Life Insurance
Company of New Y ork ; and a di
rector of the Crowe Coal Company
in Kansas City. Civic and church
duties hold his attention too, as he is
a director of the Drumni Institute
(hoys’ home) in Kansas City; trustee
of the Kansas City Philharmonic Or
chestra; treasurer and trustee of St.
Luke’s (Episcopal) Hospital, and
treasurer and vestryman of Grace and
H>dv Trinity Cathedral.
Two hobbies claim his leisure mo
ments. One is photography, the other
is the study of Americana, through
which he has acquired an excellent
knowledge of American historical
facts and documents. Mr. Beals is a
registered Republican. He is a mem
ber of the Kansas City Club, Athletic
Club, University Club, Kansas City
Country Club, Chicago Club and Yale
Club.

A dd to C ap ita l
Directors of the Midland National
Bank of Minneapolis have authorized
the transfer of $500,000 to the bank’s
surplus account from undistributed
earnings and reserves, according to an
nouncement made by Arnulf Ueland,
president. With this addition the en
tire capital structure of the bank will
consist of $1,000,000 common stock,
$1,500,000 surplus, and $670,829 undi
vided profits and reserves, a total of
$3,170,829.
In commenting upon the change,
Mr. Ueland pointed out that it repre
sents a 25 per cent increase in the
bank’s fixed capital and that the addi
tion was made to keep pace with in
creased deposits and demand for loans.
Deposits of the bank at the time of
change amounted to $62,575,997, an in
crease of $5,257,588 since the first of
the year, and during the same period
loans have increased $2,533,037 to a
present total of $18,261,181.
“What would you suggest they do
when the present divorce wave sub
sides?”
“Publish a ‘Who’s Whose’.”

-A-

★

inChicago
AS YOUR BANK
You are cordially invited to use The First National
Bank of Chicago as your correspondent. To serve you,
and to insure prompt attention in all correspondent
bank relationships, there is an experienced group of
officers which devotes its entire time to this work.
E dward E. B rown , Chairman
James B. F organ

B entley G. M c Cloud

Vice-Chairman
BANK

President

AND

BANKERS

DIVISION

John J. A nton
T homas J. N ugent
H arold W . L ewis
M elvin H. T hies
V erne L. Bartling
Charles F. N ewhall
Edward D ecker
C. Guy W

illard

OFFI CERS

Vice-President
Vice-President
Asst. Vice-President
Asst. Vice-President
Asst. Vice-President
Assistant Cashier
Assistant Cashier
Assistant Cashier

The First National Bank of Chicago
Building with C h icag o and the Nation Since 1863
MEMBER

★

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

FEDERAL

D EPO SIT

IN SU RA N C E

CORPORATION

★
Northwestern Banker, O c to b e r, 1947

32
mittee on Laws and Legislation of the
American Warehousemen’s Associa
tion, and has also served on various
committees of the Minnesota North
west Warehousemen’s Association.
Prior to his connection with the St.
H.
G. McNeely, president of the Paul Terminal Warehouse Company,
St. Paul Terminal Warehouse Com he was vice president of the G. M.
pany, has announced the appointment Gustafson Company, and in the pri
of Richard C. Schall as manager of its vate practice of law.
Field Warehouse Division.
Commencing its field warehouse
Mr. Schall has been associated with operations in 1926, St. Paul Terminal
the St. Paul Terminal Warehouse Warehouse Company pioneered the
Company since 1941 as legal counsel development of the business in the
and comptroller and is well known in midwestern states. It now maintains
both local and national warehouse offices in Detroit, Milwaukee, Des
circles. He is a member of the En Moines, St. Paul, and Minneapolis.
cyclopedia Committee and the Com Through the acquisition in 1939 of its

Richard C. Schall H ead s
Field W arehousing Division
O f St. Paul Term inal W areHousing Com pany

M odern M ethods
with

wholly owned subsidiary, New York
Terminal Warehouse Company, which
maintains its home office in New York
City and also fifteen additional offices
in principal cities, its operations ex
tend into all of the eastern and south
ern states. It stands today second in
number of operations among the field
warehouse organizations of the coun
try.
Mr. Schall states that the St. Paul
Terminal Warehouse Company will
continue its long established policy of
furnishing banks in the area the best
service and protection that can be
afforded holders of warehouse re
ceipts. He says that the company is

T fta ie

Modern M achines

V t V

M O DER N M A C H IN E R Y ]

R IC H A R D C. S C H A L L
H eads F ield W arehousing

pursuing aggressively its long term
plans for development and expansion.
Based on widespread accceptance of
St. Paul Terminal Warehouse receipts,
backed as they are by a bona fide ware
house organization with experienced
management, financial stability, and
proven, adequate insurance coverage,
the company looks forward to con
tinued healthy increase in volume and
demand.

Prom otions

Minneapolis -M oline P ower I mplement C ompany
M I N N E A P O L I S 1, M I N N E S O T A , U. S. A.

Northwest ern Banker, O cto be r, 1947

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

Important Bank of America promo
tions, as announced by A. J. Gock,
chairman of the board of directors, in
clude:
Arno C. Yaeckel, formerly manager
of the El Centro branch, to vice presi
dent and manager; Harry S. Emrich,
Jr., formerly assistant cashier, instal
ment credit loan department, Los An
geles Main Office, to assistant vice
president; Leon E. Howard, Jr., for
merly assistant cashier, loan super
vision department, Los Angeles Head
quarters, to assistant vice president.

V-

Senior Credit Analysts

Credit Information
for Chase Correspondents
As a part of our service to correspondent banks we endeavor
at all times to furnish complete and accurate credit infor
mation both for their own use and to assist them in answer
ing their customers’ inquiries.
Our extensive facilities, both foreign and domestic,
enable us to give prompt attention to the credit inquiries

Credit Department Management

of our banking friends.
Among other services to cones-pondent banks are:

Issuance of Setters of credit

Safekeeping of securities

Collection of checks, drafts and other bank documents
Transm ission of funds abroad and shipment of currency
Information and advice regarding banks’ investments
Participation in local loans when desired by correspondents

Central Index ¡ contains 2,000,000 cardsj-

Performing a w ide range of incidental services

THE CH ASE

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

N A T IO N A L

BANK

OF THE CITY OF NEW YORK
M e m b e r F e d e r a l D e p o s i t In su ra n c e C o r p o r a tio n

Credit Investigators
Northwestern Banker, O c to b e r, 1947

$iìtl-1'on1iurnl Truffi 1
Tu Itr Huid hi fiiirtit/u
|NVITATIONS to attend the MidI Continent Trust Conference to be
held in Chicago on November 6th and
7th have been extended by Evans
Woollen, Jr., president of the Trust Di
vision of the American Bankers Asso
ciation, to all trust institutions in the
nineteen-state mid-continent area. Mr.
Woollen is president of the Fletcher
Trust Company, Indianapolis, Indiana.
The states in the conference area
are: Arkansas, Colorado, Illinois, In

diana, Iowa, Kentucky, Kansas, Louisi
ana, Michigan, Minnesota, Missouri,
Nebraska, North Dakota, Ohio, Okla
homa, South Dakota, Tennessee,
Texas, and Wisconsin. The confer
ence will be held at The Drake Hotel.
The Corporate Fiduciaries Associa
tion of Chicago will act as host to the
conference, and this week its presi
dent, Charles J. Roubik, vice president
of the Harris Trust and Savings Bank
of Chicago, sent out hotel reservation

ENEROUS Americans will send many millions of dollars
abroad during November and December as Christmas
gifts to assist needy relatives and friends.

You will no doubt wish to publicize your foreign remittance
facilities.We have mapped out inexpensive direct and indirect
advertising campaigns to suit banks with a limited remit
tance business as well as banks with a considerable volume.
Payments transmitted through us are effected by the leading
foreign banks. Our service is efficient and simple. N o books
to read, no complicated instructions. One form for mail, air
mail and cable payments, and a schedule o f service charges, is
all you need. Any o f your clerks can learn in a few minutes
how to handle our foreign remittance service. Y o u will incur
no obligation in asking for details.

AMERICAN NATIONAL BANK
AND T R U S T C O M P A N Y
O F C H IC A G O
LA SA LLE STREET J J toAT WASHINGTON
M e m b er Federal D eposit

Insurance Corporation

W
O U R

B U S I N E S S

Northwestern Banker, O cto be r, 1947

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

I S

T O

H E L P

B U S I N E S S

forms together with a cordial invita
tion on behalf of the membership of
his organization to attend the con
ference.
The program, which is now nearing
completion, will include talks on trust
investments, common trust funds,
taxes, real estate values, and other
timely trust topics. The guest speaker
for the banquet to be held on Thurs
day evening, November 6th, is John
L. McCaffrey, president of the Inter
national Harvester Company.
The Committees for the conference
are:
Advisory Committee: Edward E.
Brown, chairman of the board, The
First National Bank of Chicago; Philip
R. Clarke, president, City National
Bank and Trust Company of Chicago;
Walter J. Cummings, chairman of the
board, Continental Illinois National
Bank and Trust Company of Chicago;
Holman D. Pettibone, president, Chi
cago Title and Trust Company; Paul S.
Russell, president, Harris Trust and
Savings Bank; Solomon A. Smith,
president, The Northern Trust Com
pany; Lawrence F. Stern, president,
American National Bank and Trust
Company of Chicago.
Committee of Corporate Fiduciaries
Association of Chicago: Edmund L.
Andrews, assistant vice president,
American National Bank and Trust
Company of Chicago; Thomas H. Beacom, vice president, The First National
Bank of Chicago; Chester R. Davis, vice
president, Chicago Title and Trust
Company; Louis W. Fischer, vice presi
dent, American National Bank and
Trust Company of Chicago; W. W. Hinshaw, Jr., secretary and trust officer,
City National Bank and Trust Com
pany of Chicago; Clarence B. Jennett,
vice president, The First National
Bank of Chicago; Howell W. Kitchell,
vice president, Continental Illinois Na
tional Bank and Trust Company of
Chicago; Arthur T. Leonard, vice presi
dent, City National Bank and Trust
Company of Chicago; Mark W. Lowell,
vice president, Continental Illinois
National Bank and Trust Company of
Chicago; Merwin Q. Lytle, vice presi
dent, Harris Trust and Savings Bank;
L. L. McArthur, Jr., vice president,
The Northern Trust Company; Charles
J. Roubik, vice president, Harris Trust
and Savings Bank; William S. Turner,
vice president, The Northern Trust
Company; William P. Wiseman, vice
president, Chicago Title and Trust
Company.
Committee on Arrangements: Chair
man, William O. Heath, Harris Trust
and Savings Bank; meeting places,
Edward A. Berndt, Jr., American Na
tional Bank and Trust Company of
Chicago; publicity, J. Mills Easton,

The Northern Trust Company; audit
ing, Michael A. Georgen, City National
Bank and Trust Company of Chicago;
program, Joseph T. Keckeisen, The
First National Bank of Chicago; regis
tration, Peter J. Laninga, Continental
Illinois National Bank and Trust Com
pany of Chicago; entertainment, Ken
neth W. Moore, Chicago Title and
Trust Company; hotels, Walter E.
Toon, City National Bank and Trust
Company of Chicago.

T. S ta n le y Jackso n with
A m erican Exp ress Field
W arehousing Corporation

tive,” Urban T. Thompson, vice presi
dent of Field Warehousing in New
York City, stated, “T. Stanley Jackson,
one of the top field warehousing men
in the country, was immediately our
preference. We are proud and happy
that Mr. Jackson has consented to join
our association.”
Born in Canada, Mr. Jackson, or
“ Stan” as he is known to his multi
tude of friends, is thoroughly familiar
with the Northwestern territory and
for twenty years prior to entering field
warehousing was traveling representa
tive in the United States for the Cana-

dian Bank of Commerce. Working out
of Winnipeg, he built up hundreds of
contacts which he has maintained
through the years.
Moving into field warehousing, Mr.
Jackson became manager of that di
vision with the St. Paul Terminal
Warehouse Company and gained a tre
mendous friendship in this line. For
American Express, Mr. Jackson will
operate from Minneapolis where the
Field Warehousing department will be
located in the parent firm’s remodeled
offices in the Baker building there.
The Field Warehousing section will

Climaxing virtually two score years
of strongly based business experience,
T. Stanley Jackson has been appointed
vice president of American Express
Field Warehousing, the New York
headquarters announced.
Since its 1944 inception, American
Express Field Warehousing has ex
panded rapidly and this year alone
opened the doors of new offices in At
lanta, . Detroit and Minneapolis, plus
a sales office inaugurated in Orlando,
Florida, and a wholly owned subsidi
ary with quarters in Boston. The ex-

MANY MIDWESTERN BANKERS,
WHOSE CUSTOMERS
L IV E S T O C K TO

SHIP

CH IC AG O,

R E C O G N I Z E THE G EN U IN E
UTILITY OF DROVERS FRIENDLY
SERVICE HERE IN THE ‘YARDS’
AT THE CENTER OF THINGS.

T. S T A N L E Y J A C K S O N
M anager for the N orthw est

pansion program, moving for the first
time into the Northwest with the Min
neapolis development, necessitated the
selection of a high calibre executive
to oversee and continue operational ac
tivities, particularly in the new North
western territory which comprises
Minnesota, Wisconsin, Upper Michigal, North and South Dakota and
Iowa as well.
“To insure that the growing busi
ness of this new region was in the
hands of a well-experienced execu
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Federal Reserve Bank of St. Louis

M em bers, Federal Deposit Insurance Corporation

Northwestern Banker, O c to b e r,

1947

36
be fully equipped and staffed with ex
perienced personnel to guarantee com
plete service to banking institutions
and other organizations.
The announcement of Mr. Jackson’s
appointment has been hailed by bank
ers, businessmen and industrialists
not only throughout the Northwest

STOCKS

but across the nation, and American
Express’ Field Warehousing division
plans an extensive campaign to re
introduce Stan in his new status to
financial circles.
Although underway with various
business projects already, Mr. Jackson
will officially open the Minneapolis

C O R P O R A T E BONDS

General Market
Iowa Corporations

Utility, Industrial and
Railroad

M U N IC IP A L BO N D S
Iowa and General Market

S T A N D A R D & P O O R ’S S E R V I C E
Statistical, Analytical, Advisory, Covering Listed
and Unlisted Stocks and Bonds

office under his guidance on October
1st. The office is located at 131 South
Seventh Street, Minneapolis 2.

N ew M em bers
Fourteen banks in six states became
members of the American Bankers As
sociation recently according to a re
port of the A.B.A. Organization Com
mittee, of which Max Stieg, cashier of
the Dairyman’s State Bank, Clintonville, Wisconsin, is chairman. The
new members include:
Alabama—Covington County Bank,
Andalusia; Bank of Leighton, Leigh
ton.
Connecticut—Hartford N a t i o n a l
Bank and Trust Company, West Hart
ford Center Branch, West Hartford;
First National Bank of Windsor Locks,
Windsor Locks.
Maryland—Detour Bank, Detour.
Missouri—Kingston Bank, Kingston.

INCORPORATED

Underwriters & Distributors
Des Moines, Iowa

A.T.T. DM 184

Tennessee—Farmers Bank, Athens;
Bank of Enville, Enville; Dukedom
Bank, Dukedom; Liberty S a v i n g s
Bank, Liberty; Citizens State Bank,
Morrison; Merchants & Planters Bank,
Toone.

Fifty-Seven Years
°f
INVESTMENT BANKING
1 8 9 0 -1 9 4 7

Stifel, Nicolaus
I N C O U P

ST. LOUIS

Northwestern Banker, O cto be r, 1947
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Federal Reserve Bank of St. Louis

Company

O R A T E D

•

Pennsylvania—Colonial Trust Com
pany, Bloomfield Office, Pittsburgh;
Farmers Bank, McSherrystown.

WHEELOCK & CUMMINS
200 Equitable Bldg., Ph. 4-7159

CHICAGO

INVESTMENTS

W h a t You Hurt* t.efi
A fte r You 0Buij Your Tuxes
Th is 9tem C alled Net Earnings Is of Vital Importance

to Depositors as W ell as Stockholders
By

WARREN F. SARLE
Vice

Northern

President
Trust

Company

Chicago

ARNINGS after taxes are of vital
importance to the depositors as
well as to the stockholders of a
bank. Surplus, undivided profits and
reserves can be normally increased
only from this source.
Since the termination of hostilities
in the last war operating expenses of
banks throughout the country have
increased materially. To offset this
increase rising deposits, improvement
in local loans and greater efficiency
in operations have been of some value,
but alert management has not been
satisfied solely by results obtained
along these lines. There are many
obvious changes including further re
duction in the rate of interest on sav
ings, increase in service charges,
higher rates on loans, etc., which
would improve earnings, but many of
these would be considered currently
unwise in most communities.
According to the Iowa State Bank
ing department report as of June 30,
1947, approximately 60 per cent of the
total assets of the 557 chartered banks
in the state consisted of bonds and
securities. This is a large percentage
of one type of asset and constitutes an
investment banker’s as well as a com
mercial banker’s management prob
lem. Here lie several opportunities
for astute management to serve the
stockholders to advantage.
Under the Federal Income Tax law,
banks occupy a rather unique position
among corporations. The bond account
affords an opportunity to choose the
type of dollar as to tax status which
the bank earns from this source. This
is accomplished by selecting fully tax
able, partially tax exempt and fully
tax exempt bonds according to the re
quirements of the bank. Most cor
porations other than banks are in a
position to earn only fully taxable
dollars.

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Federal Reserve Bank of St. Louis

Obviously for paying expenses fully
taxable securities should be held be
cause they yield the largest income per
dollar invested. Beyond this point,
however, partially tax exempt Govern
ments and fully tax exempt high grade

W A R R E N E. S A R L E

State and Municipals should be con
sidered.
The price which a bank can afford
to pay for either partially or fully tax
exempt securities of a given maturity
depends entirely upon anticipated tax
status for the taxable year. Tax rates
applied to corporation taxable income
up to $25,000 range from 21 per cent
to 25 per cent. On taxable incomes
under $50,000 and above $25,000 the
combined normal and surtax rate
amounts to 53 per cent, and on taxable
incomes of $50,000 or more the com
bined rate is 38 per cent. There are

several other combinations of normal
and surtax rates which are determined
by normal and surtax net income
brackets, and these tax rates are the
deciding factors as to the price a bank
can afford to pay for tax exempt secu
rities in preference to fully taxable
Government securities of comparable
maturities.
Every banker should be thoroughly
familiar with the Federal Income Tax
law as applied to banks. Too many
bankers give no thought to taxes until
the end of the year at which time they
turn over their books to a tax ac
countant for the computation of their
tax bill. The accountant fills in the
tax schedule, gives it to the banker
who too often merely signs it and pays
the tax without reviewing the sched
ule in detail. The accountant is only
interested in the accuracy of the tax
bill, and rightly so. To the banker
the amount of the tax bill should be
relatively u n im p orta n t, but the
amount of profit remaining after taxes
for increasing the capital account and
for dividends is extremely important.
He should study and thoroughly
understand the completed tax return
and determine to what extent earn
ings after taxes could have been in
creased by the use of tax exempt se
curities in his bond account. Then by
budget procedure an estimate of earn
ings for the ensuing year should be
made and any changes in the bond ac
count which would enhance net in
come after taxes should be scheduled
and put into effect as satisfactory buy
ing opportunities appear. Very likely
such a schedule would not only re
quire tax exempt securities for the in
vestment of excess cash becoming
available from time to time, but also,
and even more important, the partial
shifting of funds from fully taxable
securities into tax exempts. If MuniciNorthwestem Banker, October, 1947

Investments
creased without lengthening maturity
and thus reducing the liquidity of the
bond account.
Under the Federal Income Tax law
for corporations an alternative tax
rate of 25 per cent is provided on long
term capital gains. This rate is al
ternative to the combined normal and
surtax rates, and its use is optional to
the taxpayer. Profit taken on an asset
held longer than six months is classi
fied as a long term gain under the law.
Obviously if the long term gain falls
into combined normal and surtax
brackets demanding a combined rate
exceeding 25 per cent, the alternative

pals are required, a little time may be
necessary to complete the program
because of quality, maturity and price
requirements. If partially tax exempt
Governments are needed, the shifting
can be accomplished promptly.
Under prevailing relative price lev
els for taxable and tax exempt securi
ties, very few banks having total as
sets of less than $2,000,000 enjoy earn
ings sufficiently large to justify the
use of tax exempt securities. For
larger banks, however, the tax ap
proach may be very advantageous. It
is particularly interesting because net
to stockholders may be materially in

Municipal

Public Utility
Industrial

Railroad

IS[INVESTMENTj§ 1
HI SECURITIESIfe /
\U\\ SINCE I*31

1902 //t/J

Stocks

Bonds

H. M. Byllesby and Company
Incorporated

135 South LaSalle Street, Chicago 3

Teletype
CG 273

Telephone
State 8711

New York

Philadelphia

Pittsburgh

JAMES C. SHAW

Minneapolis

OWEN P. McDERMOTT

Säaw, McDermott t, f o .
INVESTMENT SECURITIES
M UNICIPAL
INDUSTRIAL
R AILR O AD
PUBLIC

UTILITY

914 Liberty Bldg.
DES

Phone 3-6119
MOINES

Northwestern Banker, O cto ber, 1947
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Federal Reserve Bank of St. Louis

IOWA

rate of 25 per cent is of advantage to
the taxpayer. If the normal and sur
tax brackets produce a combined rate
of 53 per cent, or even 38 per cent, the
advantage afforded by the alternative
rate is substantial. On the other hand,
banks with combined rates of less than
25 per cent derive no advantage from
the alternative rate and consequently
are seldom interested in long term
gains.
Only fully taxable bonds should be
considered for the taking of profits.
Bond profit is nothing more than fu
ture income taken in advance of ma
turity so of course long term gains on
partially and fully tax exempt bonds
operate to the disadvantage of the
bank and should be taken in the form
of income over the years to maturity.
Among commercial bankers, espe
cially outside of our large cities, there
are many who have a prejudice against
premiums when purchasing bonds for
bank investment. This prejudice, al
though not so widespread now as in
the past, is reflected in the current
market. In the State and Municipal
bond market it is generally true that
a better yield can be obtained from a
high premium bond than from one
at par or a discount with credit and
maturity identical. Some banks ob
ject to as little as one to five points, to
say nothing of 20 to 50 points pre
mium. This attitude often prevents
the purchase of anything other than
Treasury Bills, Certificates of Indebt
edness and Treasury Notes in anything
like justifiable amounts. At a mate
rial sacrifice of net earnings after
taxes, partially tax exempt Govern
ments and Municipals have been
avoided by some bankers solely be
cause of premiums.
In the minds of some bankers, at
least, prejudice against premiums may
be accounted for by the mistaken opin
ion that high premium bonds are less
liquid than bonds acquired at par or
at a discount. Liquidity implies abil
ity to dispose of an asset without loss
as compared with the book value of
that asset. It is a relative term and
the degree of liquidity depends upon
three principal factors: quality, mar
ketability, and maturity. Whether
the book value is below par, at par or
above par is of no practical conse
quence. Book values of par and below
par are usually cost prices and remain
constant throughout the lives of the
bonds, whereas book values above par
change downward over the term of the
bonds through amortization.
The
proof of liquidity, however, is always
recognized by the approximation of
market value and book value at a given
time.
An additional advantage of high pre
mium bonds is the serial maturity of

Investments
the premium through amortization.
For example, $10,000 par value bonds
due in ten years purchased at 50 points
premium represent a total investment
of $15,000 of which $5,000, or one-third,
is returned by amortization serially
each year, or in most cases each six
months, over the ten year period.
Budget estimates of expenses and
earnings made at the beginning of the
year should be compared with actual
results at least quarterly throughout
the year.
If variations from the
budget occur, changes in investment
policy can be made accordingly in or
der to obtain most favorable net earn
ings after taxes for the year.—The
End.

fH A LOANS
Guaranteed by U. S. Government
In 10 years we have never met a banker who w as dissatisfied
with an F.H.A. loan he bought or made.
Security— F.H.A.'s are guaranteed 100% by the U. S. Gov
ernment.
Yield— F.H.A. yield is about double that of the average
government portfolio.

YOU CAN'T LOSE

*Hte National Com pany o / Jawa
Masonic Temple Building, Des Moines 9, Iowa
DON McMURRAY
CHARLES YODER

N ew Senior O fficers
Four officers of the Chase National
Bank have been appointed to the
newly-created rank of senior vice
president by the Chase board of direc
tors, according to an announcement
by Winthrop W. Aldrich, chairman.
Joining Mr. Aldrich and Arthur W.
McCain, president, in the top-level
executive group to deal in matters
having to do with the bank’s manage
ment and policy are Carl J. Schmidlapp, Percy J. Ebbott, Edward L. Love
and Hugo E. Scheuermann, vice presi
dents of long standing. All will con
tinue there present assignments in
addition to their new responsibilities.
Mr. Schmidlapp is a director of the
Chase and chairman of the commercial
banking department. He was born in
Cincinnati, Ohio, and is a graduate of
Cornell (’08). He has been a vice

THOMAS L. CRABBE
& COMPANY
Investment: Securities

BONDS
Public Utility-Railroad
Industrial— Muni cipal

Bankers are cordially invited to avail
themselves of the complete invest
ment facilities of our organization.

Merchants Bank Bldg.
CEDAR RAPID S, IO W A

★

SECURITIES OF

E. H. Rollins & Sons
Incorporated

IOWA CORPORATIONS
BOUGHT
SOLD

135 S O U T H L A S A L L E S T R E E T , C H IC A G O 3
N ew Y ork

Boston

Philadelphia

San Francisco

QUOTED
Prompt Reply to Inquiries

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Federal Reserve Bank of St. Louis

Northwestern Banker, O c to b e r, 1947

Investments

president of the bank since 1915, and is
a director of Allied Chemical & Dye
Corporation, Chicago Pneumatic Tool
Company, Continental Insurance Com
pany, General Foods Corporation, and
many other corporations.
Mr. Ebbott, vice chairman of the
commercial banking department and
in charge of the bank’s business in
thirteen midwestern states, is a native
of Wisconsin and a graduate of Oberlin
(Ohio) College, of which he is now a
trustee. He has been associatèd with
the bank for almost 35 years and has
been a vice president since 1921. He
is a director of the Allied Stores Corp.,

Nash-Kelvinator Corp., Moore-McCormack Lines, The Chase Bank and
other corporations.
Mr. Love, a vice president since 1930,
is in charge of the bank’s public utili
ties department, which he organized
fifteen years ago. The division, rel
atively unique among banks, extends
loans to utilities groups which serve
virtually every section of the country.
He is a director of the New York &
Richmond Gas Company, Willys-Overland Motors, Inc., Arnold Constable
Corporation and other corporations.
He resides in Staten Island, where he
was born.

Greetings to the
Iowa Bankers Association
MUNICIPAL
BONDS
EXCLUSIVELY

VIETH, DUNCAN & WOOD
MUNICIPAL BONDS
Walter E. Vieth

A . M. MacLaughlin

Davenport Bank Bldg.
Phone 2-5379 Teletype Dvpt. 93
Davenport, Iow a

P E R C Y J. E B B O T T
Senior V ic e

President

Mr. Schuermann, who has been asso
ciated with the bank since 1912, has
had extensive experience in the han
dling of credits and loans to customers
in all parts of the country. He has
been a vice president for twenty-five
years.

Big Reward
“Does this lodge have any death
benefits?”
“ Sure. When you die you don’t
have to pay any more dues.”

Investm ent

M anagem ent
for

a m

sox

r o s

. <V C

207 Equitable Bldg., Des M oines, Iow a

In d ivid u al. Estate

Phone 4-3266

and

S to ck and C o m m o d ity

B rokers

Established 1874

W . H. Sievert, Mgr.

W . E. Copeland, Assoc. Mgr.

Institutional
Accounts

C. E. Deuben, Asst. Mgr.
Home Office— 141 W . lackson Blvd., Chicago, 111.

O T H E R
Bloomington, III.
Cedar Rapids, la,
Davenport, la.
Dubuque, la.
Fort Dodge, la.

B R A N C H E S

Marshalltown, la.
Iowa Falls, la.
Mason City, la.
Kansas City, Mo.
New York City
Lafayette, Ind.
Omaha, Nebr.
LaSalle. III.
Peoria, III.
Lincoln, Nebr.
Waterloo, la.

Northwestern Banker, O c to b e r , 1947
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Federal Reserve Bank of St. Louis

Quincy, III.
St. Louis, Mo.
St. Paul, Minn.
Sioux City, la.
Storm Lake, la.

*1 . C . E n y a r t
In su ra n c e

E x ch a n g e

Building

D es M o ines, Io w a

In terest H a les In eh in if
M eans More W ork for investm ent Fund M anagers;
They Must Keep Up and T ry to Lead the P arad e
By

RAYMOND TRIGGER
Investm ent
New

HE money managers in Washing
ton gave no sign of dismay at the
reaction to the terms on which the
September maturities were refunded.
Fundamental policy of gradually de
monetizing the debt apparently is as
fundamental as ever, even though the
September operation brought, at least
in part, the exact reverse. Unsatisfied
with the interest offered on the new
issue, many commercial banks pro
ceeded to do their own refunding, as
they have so often in the past. Net
result, of course, was to lengthen aver
age maturities of governments held by
these banks.
Likewise, the astonishingly tenta
tive first step toward shifting govern
ments from commercial banks to insti
tutional and private investors, is
hardly likely to make any marked
change in the general situation. How
ever, it was another step and the
Treasury has too many responsibili
ties to go striding along when it can
get there by creeping.
The answer of the authorities to the
commercial bankers who want a
higher short-term rate was for bank
ers to think less of income from short
term governments and to concentrate
on lending money to commercial bor
rowers. The advice is all right, but it
won’t mean much till the borrowers ap
pear in greater numbers and seek
larger loans. Likewise, the authorities
urge heavier committments in high
grade corporates and lighter holdings
of governments. That advice, like
wise, would be more welcome, if yields
from high-grade corporates were a
little closer to living wage level.

Adjusting Rate Structure
Nonetheless, the whole situation is
gradually working itself out. The in
terest rate structure is being adjusted
at a number of points. Rates on bank
ers acceptances have been lifted a
trifle and the Federal Reserve has per
mitted the bill rate to go above % per
cent.
On the other side of the picture
there is evidence of a constructive
sort, also. Some few savings banks
have found that they can use more
money and have raised the rate paid
on deposits. Exceptional, of course,

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Federal Reserve Bank of St. Louis

This is a discussion of factors
affecting your investment port
folio. If you have any questions,
or if you find yourself in dis
agreement with comments here
in, your letters, addressed to the
NORTHWESTERN BANKER, will
be welcome and will be answered
here if the subject matter is of
general interest. Under no cir
cumstances will the editor of this
column discuss specific securities.

but a straw in the wind, perhaps.
Also, mortgage money is in not quite
so large and free supply in certain
areas.
From top to bottom, then, interest
rates are gradually inching higher. It
is a good sign, but it also means more
work for the managers of investment
funds. Their job is to keep in step
with the parade, if possible a little in
advance. Routine portfolios must be
up-graded; average maturity of gov
ernments steadily shortened; and
somewhat higher earnings realized at
a minimum of risk. Some of the op
portunities and problems are touched
upon in succeeding paragraphs.
During the war, of course, many
contemplated civic improvements were
deferred. Now that the transition is
well along, the picture is changing.
One result has been an unprecedented
flow of municipal obligations to mar
ket. A normal 30-days “visible sup
ply” (the total of sealed bid offerings
scheduled over the next 30 days) is
around 100 millions. Currently, “nor
mal” is quite twice that figure and a
grand total of 2.5 billions this year of
new municipal offerings would sur
prise no one.
The ability of the municipal market
to absorb large amounts of new bonds
has caused some comment, but most
observers tend to forget that there
has been a steady shrinkage in the
total of outstanding obligations for
many years and that even the creation
and sale of 2.5 billion of new bonds in
1947 will not lift the total outstanding
to the levels of a few years back.

York

Analyst
City

The quality of municipals varies, of
course, with a variety of factors, but
barring catastrophes, the community
which has the will to meet its obliga
tions can do' so. Consequently the
long-term, over-all record of municipal
obligations is a fine one. There have
been notable shifts in the ownership
of municipals in the past decade or so,
because of the tax-exempt feature. Not
every investor has the same need, and
consequently will not pay the same
price, for tax shelter. Commercial
banks, notoriously, have been some
what apathetic about paying for tax
protection they do not need.
Nevertheless, the country’s banking
system, viewed through the annual
report of the FDIC-insured institu
tions, is a large factor. Thus, obliga
tions of states and political subdivi
sions held by insured banks at the
close of ’46 amounted to 4.3 billions, up
a little since the end of ’41. This fact,
plus the drop from 15 to 13 billions in
the total of such obligations outstand
ing has lifted the holdings of banks to
30 per cent from 24 per cent five years
earlier. The need for tax protection,
and to some extent, for short maturi
ties is most unevenly spread. More
than 20 per cent of the banks held no
exempts, while 61 per cent held bonds
valued at less than capital funds. The
bulk of the 4.3 billions, then, was con
centrated in 18 per cent of the insured
banks.
Because of the possibility that taxes
will be lightened rather than increased
in the medium term future and be
cause the whole interest structure is
gradually being permitted to rise,
many observers conclude that slightly
larger yields are likely to be seen on
municipal bonds. A slight, or even a
modest rise in the return from ex
empts, however, will not attract the
average commercial bank. There are,
however, exempts, outstanding and in
prospect, that afford relatively gen
erous yields.

Revenue Projects Risky
Revenue obligations, whether they
be the bond of a state, or a political
subdivision thereof, or of an “author
ity,” ordinarily do not carry the pledge
Northwestern Banker, October, 1947

Investments

of the “full faith and credit” and un
limited taxing power of a municipality.
Frequently, they are specifically pay
able only from certain, anticipated,
revenues. They are, though, tax ex
empt. This is by no means a sufficient
offset for the element of risk that is
sometimes found in revenue projects.
Indeed, the exemption from taxation
may be an invitation to undertaking
an economically unsound operation.
On the other hand, when the heavy
hand of the tax collector is stayed, the
facility may be relieved of a burden
which would bankrupt a similar,
privately-owned venture.

Because of the nature of revenue
obligations, yields to the investor are
often definitely appealing. A not in
significant part of the success of an
offering of $105,000,000 Chicago Tran
sit Authority bonds has been attrib
uted to investment purchases by large
commercial banks, doubtless far more
interested in yield than tax shelter.
As earlier noted, many municipal
dreams were not realized during the
war years, but have since been revived
and may be made actualities in the
course of the next few months. Many
of these will be revenue projects.
They will appear in bewildering

M U N ICIPAL BONDS
Specializing in Iowa
County, City, School and
Municipal Utility Revenue Issues

C A R iÆ T o y D . B

e h

IN V ES TM EN T S E C U R IT IE S
D E S

M O I N E S

S U I L D I N S

D i : s M o in e s , I o w a
TELEPHONES: 4-8156, 4-8157

variety. There will be new tunnels,
bridges, airports, toll highways, hos
pitals and college dormitories, among
other schemes. Existing facilities will
be taken over by municipalities for
one of many, or for several reasons.
Unfortunately, these prospective
new obligations, to be supported by
revenues, do not lend themselves to
easy analysis. Nevertheless, they will
present yields too attractive to be ig
nored by the investment departments
of commercial banks. Each will have
its own set of problems and imponder
ables. Only intensive study will avail
anything. There will be wealth of
data, to be sure, from the underwriters
and their engineers but a great part
(necessarily in the case of facilities
yet to be constructed) can be no more
than intelligent estimates of what the
future holds in store.
The rating agencies will endeavor to
appraise the more important situa
tions and will assign to the bonds one
of their arbitrary symbols. These are
frequently useful guides, but no man
ager of the investment portfolio of a
bank worthy of the name will blindly
rely upon the judgment of an outsider.
The challenge is there, though, and
can hardly be declined out of hand.
The best general advice, probably, is
that the old principles of moderation
in total purchases and diversification
(both geographic and as to the func
tion of the facility)' should be stead
fastly adhered to.
If further evidence were needed of
the high regard in which railroad
equipment obligations are held by the
country’s leading commercial banks,
the eager (and frequently successful)
bidding for certificates would supply
it.

Banks Buy Railroads

G R E E T IN G S

W I L L I A M BLAIR & C O M P A N Y
MEMBERS OF

New York Stock Exchange

Chicago Stock Exchange

135 South La Salle Street
Chicago 3, Illinois

Iow a R e p r e s e n t a t i v e :
Union Bank & Trust C om pany Bldg.

Northwestern Banker, October, 1947
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Federal Reserve Bank of St. Louis

L. H. R Y A N
Ottum wa, Iow a

Of six issues sold in August and
early in September, four went to
groups of commercial banks and only
two were awarded to investment bank
ers, the traditional buyers of these
prime investments. Equally interest
ing is the fact that the eagerness of
commercial banks to sharpen pencils
and enter the competitive arena is not
limited to a small group or confined to
one area. Thus, winning commercial
bank groups have been headed by Chi
cago’s First National Bank, Pitts
burgh’s Mellon National Bank & Trust
and New York’s First National Bank.
The significance to the smaller com
mercial banks is plain. Hardly any
would ask to be in better company
than of these leading, and most con
servatively administered institutions.
The difficulty, of course, is to become
a member of one of these groups and
then fortunate enough to be a member
of the winning syndicate. Accordingly,
it is not unnatural that many of the

Investments
smaller city commercial banks feel
that the entry of financially powerful
groups of commercial banks into a
field that has long been dominated by
investment bankers is not without its
drawbacks.
There are several reasons why
many medium-sized banks would like
to see a return to former methods.
First, of course, is price, a factor in
which the smaller members of the
winning group have limited say, but
proportionate liability. When an in
vestment banker makes a mistake and
pays too much, he will re-offer the
certificates, but no commercial bank
is bound to buy them. Secondly, it is
to the interest of the investment
banker to retain the good-will of the
commercial banks he numbers among
his customers. One method is to give
the commercial banker reasonable
time to make a decision, meanwhile
reserving at least a few certificates.
The winning group, though, if it is
made up of a few large banks, fre
quently takes down the entire offering
for their own investment portfolios,
never even naming a re-offer scale,
much less reserving any for regular
customers.
However, the vast majority of the
country’s banks outside the small
groups led by big-city banks can do
little to prevent the big banks from
trying to by-pass the investment bank
ers, except, for what it may be worth,
to make their attitude a matter of
record. Nonetheless, the whole move
ment does add lustre to railroad equip
ment obligations and from time to

time, investmnet bankers will be in a
position to supply them. They are al
ways worth the most careful and
sympathetic scrutiny.—The End.

N ew D irector
N. Baxter Jackson, chairman of the
Chemical Bank & Trust Company, an
nounces the election of Robert J. Mc-

---------------------------

Kim to the board of directors of the
bank.
Mr. McKim is president and director
of Associated Dry Goods Corporation
and a director of Hahne & Company,
Newark and Montclair, New Jersey,
Stewart Dry Goods Company, Louis
ville, Kentucky, and National Retail
Dry Goods Association. He is also a
trustee of the North River Savings
Bank, New York, N. Y.

We Buy and Sell

—

All Stocks and Bonds Including
LaPlant-Choate Mfg. C o................................................. ............. Capital Comm on Stock at 7%
Iow a Electric Light and P ow er C o..................................... ............. 6% , 6Vi■%, 7% Pfd. Stock
Central States Electric C om p a n y.................................................................... 6% , 7 % Pfd. Stock
Io w a Electric C om p a n y...................................................................................61/ 2 % , 7 % Pfd. Stock

Information and quotations cheerfully furnished on all stocks
and bonds. Kindly call us.

Cmmir
F lo y d G illa m
C e d a r R a p id s, Io w a

T e le ty p e CR-21

M U N ICIPAL BONDS
(Iowa and Illinois)
COUNTY
CITY
SCHOOL
REVENUE

BONDS

THE WHITE-PHILLIPS CO., INC

and

STO C K S
Full Information and
Markets to all Banks and
their Customers on Listed
or Unlisted Bonds and
Stocks.
Municipal, Public Utility,
Industrial, Railroad

McCrary, Dearth & Co.
IN C O R P O R A T E D
Telephone 4-2291
600

Des Moines

First National Bank Bldg.
Chicago, Illinois

First National Bldg.

Teletype DM 91
Building

Davenport, Iowa

MUNICIPAL

STATE

and

REVENUE BONDS
BALLARD-HASSETT COMPANY
Central National Bank Building

Des Moines, Iowa

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Federal Reserve Bank of St. Louis

Northwestern Banker, O cto be r, 1947

N e b r a s k a A a a a Field H
J

EXCHANGE

ONE OF THE OUTSTANDING EVENTS o f the year for
Nebraska bond and investment dealers is their annual field day
which was held this year at the Omaha Country Club. Last
month more than 90 investment men from the Cornhusker state
and several large cities left their portfolios at the office, went
out and tried to knock the hide off a golf ball or else watched
the other members walk up and down hill over the Country
Club’ s beautiful 18-hole course.
A few of those enjoying the annual outing are shown in the
pictures above. In the top row, reading from left to right in
each photograph are: Paul Soule, A. E. Hughes Company, Chi
cago; Jack Sparks, Sparks and Company, Des Moines; Walter
Cole, Beechcraft-Cole Company, Topeka, Kansas, and L. M.
(Shorty) McCague, The National Company, Omaha.
Frank
Bender, president, Wachob-Bender Corporation, displaying his
powerful tee shot, one reason why he led the tournament with
a low gross of 75. His handicap was four on the tough par 72

S A V IN G S D E P O S IT S A R E
S T IL L IN C R E A S IN G
(Continued from page 17)
the year 1946 we had net increase in
the number of accounts in the amount
of 136. So far during 1947 we have
had a net increase of about 30 ac
counts. We in this bank have been
pleasantly surprised that our savings
balances have not only stood up as
well as they have but have shown the
healthy increase as indicated above.
“Cloquet is an industrial town and
although we do have some agriculture
in the surrounding area, the greater
Northwestern Banker, October, 1947

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Federal Reserve Bank of St. Louis

course. Taking it easy at No. 1 tee— Stanley Kuncl, Buffet and
Company, Omaha; Harry Greenway, sales manager, Greenway
and Company, Omaha, and general chairman of the field day;
Harry Nelson, Blyth and Company, and Jack Frazier, A. C.
Allyn, Omaha.
Bottom row— J. Cliff Rahel, first vice president and treasurer,
Wachob-Bender Corporation; A1 Berquist, First National Bank,
Chicago; Russ Gustafson, Northern Trust Company, Chicago,
and Charles O. Main, Ballman and Main, Chicago. The last pic
ture shows the only sorrowful note of the d a y ’ s fun— tearing up
tickets that have been cancelled in the “ Omaha Squawk Ex
change ’ ’ drawing.
Other winners in the golf tourney were: W. W. Payne, First
Texas Corporation, low net for guests and Eugene O ’Donnell,
Byllesby and Company, Omaha, who turned in low net for
local guests.

majority of our customers, and by far
the large proportion of our savings
balances, are employes of our various
industries. We in this bank have al
ways felt that savings accounts are
still the backbone of banking and
although our interest rate is not large,
as we are only paying 1 per cent and
three-quarters of 1 per cent of bal
ances in excess of $5,000, still we have
never felt that we should entirely
eliminate some interest payment, and
even go so far as to frequently ad
vertise in our local paper for savings
accounts.
“The outlook for the immediate
future depends to the greater extent

on our industrial situation. At the
present time the outlook for most of
our industries seems to be good al
though one of our local industries, a
match manufacturing plant, was com
pelled to lay off about 250 employes
recently. This sort of thing could
very easily have some bearing on our
savings department balances. Another
thing—up to date our local merchants
have not been able to procure very
high inventories in various types of
consumer goods. If the time could
arrive when an unlimited amount of
consumer goods would arrive on the
local market, this no doubt would also
have some bearing on our savings de-

Investm ents

partment balances.
On the whole
though, it is our opinion, following
our experience of these past two years,
that our savings department will hold
its own and possibly show some in
crease.”
M. A. Arneson, president, Clear Lake
Bank and Trust Company, Clear Lake,
Iowa: “Our savings deposits have
shown a continual increase over the
past few years. We believe this trend
will continue for a time or that these
deposits will hold at the present level
until such things as automobiles,
household appliances, etc., are more
plentiful for purchase; also until real
estate values re-adjust themselves to
a lower level or building costs do
likewise. We believe the thrifty per
son who has been saving the past few
years is rather reluctant to spend it at
present day prices.”
Fred E. Stein, cashier, First National
Bank, Cold Spring, Minnesota: “ Our
savings deposits have gone up almost
15 per cent during the last year while
the checking deposits have remained
about the same. There has been very
little increase in the last two months
or so, however.”

lutely nothing to warrant this in
crease. We are paying 1 per cent up
to $2,000 and nothing over this
amount, which does not seem to me to
be very attractive, and in addition we
are doing everything we can to get our
customers to invest their surplus
funds in government savings bonds.
By continued stressing of these bonds
we do not expect our savings deposits
to increase to any great extent in the
immediate future.”

John M.

C O N T R O L O F IN S T A L LM E N T
C R ED IT
(Continued from page 24)
equity equivalent to one-third of the
cost of the article. We do not expect
to deviate far from this rule, even
after controls are removed in Novem
ber.
“We do not think that retailers are
going to expect any material change.

Cal L. Rueffel

Beyer

Iowa and Illinois
MUNICIPAL BONDS
BEYER-RUEFFEL & CO.
investment Securities
Kahl Building

Davenport, Iowa

Dwain Lloyd, cashier, Climbing Hill
Savings Bank, Climbing Hill, Iowa:
“ During the past year our savings
deposits have increased approximately
one-third. This is not particularly to
our liking, and we have done abso
Prospectus on request from Principal Underwriter

Greetings

INVESTORS SYNDICATE
E. E. CRABB, President
Minneapolis, Minnesota

to
REPRESENTATIVES IN THE PRINCIPAL CITIES OF THE UNITED STATES

IOWA
BANKERS
SPECIALIZING

...

& & p

in High-Grade

HAROLD L ALLEN
INVESTMENT CO.

Municipal

412 Equitable Bldg.
Des Moines
Harold L. Allen, Pres.
K. M. Ressler, Secy.-Treas.

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Federal Reserve Bank of St. Louis

SPARKS & CO.
528 Liberty Building

Telephone 3-5154
DES MOINES. IO W A
Northwestern Banker, O cto be r, 1947

Investments

Articles are becoming easier to get,
but there should be plenty of money
among the public to require downpayments which will avoid re-posses
sions as much as possible. The public
needs guidance when it comes to
credit matters, and retailers and loan
ing agencies must co-operate on estab
lishing policies which are sound. Gov
ernment controls were only temporary
measures, and will gradually be elim
inated.”
Charles Kriz, cashier, United State
Bank, Cedar Rapids, Iowa: “ Basing
our experience on the past we feel that
after November 1st there will be some
easing of credit terms, especially in
the automobile field, but not enough
to jeopardize the lender’s position.”

F. A. Timm, president, Farmers and
Merchants State Bank, Balaton, Min
nesota: “Elimination of all federal
controls on installment buying will
not affect the good banker or the good
merchant. They will continue to use
good judgment on all installment
financing.”

out here in the rural community we
believe not.
“ Our demands for installment are
mostly for six or twelve months, and
they will be paid from either crops
or livestock. Monthly payments are
far and few between. The farmers
on the whole are pretty well fixed, and
with the prices that they are getting
F.
<). Palmer, cashier, Security State for their crops, do not need much
Bank, Canova, South Dakota: “We are financing.”
primarily an agricultural and stock
Earl A. Hoffman, president, First
raising community. Most installment
buying here is in large amounts, that Trust and Savings Bank, Anthon,
is farm machinery, tractors and autos, Iowa: It appears to me that when all
when they can get them. With what federal controls on installment credit
experience we have had in the past buying are removed in November,
in these lines, we do not think that it there will be a spurt in buying. The
will have any effect at all. No doubt in desire for ‘the more abundant life’
the cities it will make a difference but strongly prevails, and people will gen
erally buy to the fullest extent if they
can get the credit.”

Greetings . . . IOWA BANKERS

RAVENSCROFT & CO.
Specializing in Municipal Bonds for Institutional investment
We Trade All Securities
We would appreciate an opportunity to be of service

MERCHANTS NATIONAL BANK BUILDING— CEDAR RAPIDS, IOWA

MUNICIPAL BONDS
CORPORATION BONDS and STOCKS
We shall be glad to furnish statistical
reports on request

N EW S AN D V IEW S
(Continued from page 18)
This shift is reflected in the fact
that food costs today are $1.29 for
every dollar a year ago, while wages
are up to only $1.19 on every dollar.
Farmers’ income is up to about $1.24
from a year ago.
Bank earnings, at least for a group
of eight New York city banks, showed
an improved trend for the second
quarter of 1947. This is shown in an
analysis made by Frank Elliott of the
New York Research Department of
Paine, Webber, Jackson and Curtis
which reveals that interest on loans
increased while interest and dividends

“ The market place for
loica Securities

KALMAN & COMPANY
Endicott Building
ST. PAUL
Garfield 3305

McKnight Building
MINNEAPOLIS
Atlantic 5313

Best wishes
to members of the
Iowa Bankers Association
P

FRANK FILIP & C O M PAN Y

T .C . HENDERSON & CO., Inc.

GENERAL MARKET

E stablished

T. C. Henderson
Pres.

STOCKS AND BONDS

Helen Walker
Secretary-T reasurer

228-229 Higley Building
CEDAR RAPIDS. IO W A

Dial 2-3548

Northwestern Banker, O cto be r, 1947
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Federal Reserve Bank of St. Louis

1930

E. A. Petersen
Vice Pres.

Teletype CR 12

206 Empire Bldg.

Des Moines

in vestm en t Hunkers Field tin y

MEMBERS of the Iowa Investment Bankers Association
staged their annual Field Day in Des Moines last month, with
150 members and guests in attendance.
The affair started
with a breakfast at the Hotel Fort Des Moines, with the bal
ance o f the day and evening spent at the Wakonda Golf Club,
where sports o f all kinds were enjoyed.
Golf winners were Ira Allen, low gross; Ludmil Prastka, high
score; and blind bogey winners, Nathan Sharpe, Eldridge Clow,
Mike Dearth, Phil Carroll, and Jack Brady. Some of those
attending are pictured above, left to right.
Upper left— five prominent traders, all o f Chicago— E. H.
Welch, Sincere & Company; Harry Nelson, Blyth & Company;
Eddie K. Hayes, Central Republic Company; Earling J. Hansen,
Comstock & Company; and Patrick J. Cummings, Bear, Stearns
& Company.

Upper right— Don G. Miehls, William Blair, Chicago; Lynn
Swaney, Cedar Rapids; Harry Westphal, Iowa-Des Moines Na
tional Bank; Lyman Mitchell, Chapman-Cutler, Chicago; J. H.
Becker, Carleton D. Beh Company, Des Moines; Owen B. Mc
Dermott, Shaw, McDermott & Company, Des Moines; and John
Beyer, Beyer, Rueffel & Company, Davenport.
Center— L. M. Rieckhoff, Northern Trust Company, Chicago.
Lower left— Winfield W. Scott, senior vice president Valley
Bank & Trust Company, Des Moines; Hugh R. Jackson, Iowa
deputy superintendent o f banking; and E. P. Kautzky, vice
president Valley Bank, Des Moines.
Lower Right— Ira Allen, Wheelock & Cummins, Des Moines;
Sherman Fowler, assistant vice president, Iowa-Des Moines
National Bank, the man who did all the work at the Field Day;
and T. C. Henderson, Henderson & Company, Inc., Des Moines.

on securities declined only very slight
ly after the severe declines of the pre
ceding two quarters. On the expense
side, salaries and wages decreased in
the second quarter of 1947 and other
operating expenses were down slight
ly. The banks surveyed include the
Chase, Bankers Trust, Chemical, Guar
anty, Manufacturers, National City,
City Bank Farmers and the New York
Trust Co.

chairman of the Commercial Credit
Company of Baltimore. He points out
that in 1941, our national disposable
personal income (total income after
taxes) was $92 billion and of this, only
10.75 per cent was in outstanding con
sumer credit.
This year, Americans have national
disposable personal income of $169
billion with $10,664 million in con
sumer credit outstanding.

Thomas W. Lainont and Russell Leffingwell, of J. P. Morgan and Co. In
1930, when James W. Gerard, former

Expanding consumer credit pur
chases such as automobiles, refrigera
tors, radios, and all the items served
by personal loans, cannot possibly
play a very large part in producing in
flation, according to A. E. Duncan,

Is Wall Street slipping? The answer
is “Yes” according to the noted writer
John Gunther, who names only three
bankers on his list of “64 men who
run America.” The three are Winthrop W. Aldrich, Chase National;

From the desk of Rufus R. Jeffris,
assistant vice president, the Harris
Trust and Savings Bank, Chicago,
comes a new eight-page booklet en
titled, “Your Correspondent Bank.” It
outlines the various streamlined serv-

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Federal Reserve Bank of St. Louis

American Ambassador to Germany,
handed out a list of “40 men w"ho rule
America,” nine bankers were named,
including Andrew W. Mellon, J. P.
Morgan, George F. Baker, John I>.
Rockefeller, Thomas W. Ramont, Al
bert H. Wiggin, Charles E. Mitchell,
Walter E. Frew and A. P. Giannini.

Northwestern Banker, October. 1947

Investments

ices offered by the Harris Trust and
Savings to its many correspondent
banks, under such headings as “Gov
ernment Securities,” “ Corporate In
vestments,” “ Safekeeping of Bank
Securities,” “ Tax Problems of Banks,”
“ Credit Information and Counsel,”
“ Cost and Operation Surveys,” “For

eign Services” and a score of other
correspondent aids.
Commenting on a recent rumor from
London that the U. S. Treasury may
increase the price it pays for gold
from $35 to $50 an ounce, President
Thomas J. Parkinson, of the Equitable
Life of New York, says this would give

the Treasury a windfall of $10 billion.
He points out, however, that, “The in
crease in the price paid by the Treas
ury for gold would promptly increase
the flow of gold to this country and
that would again provide the commer
cial banks with additional reserves
which would be available for further
expansion of bank credit and of the
money supply. That would be infla
tionary with a wallop.”
. Mr. Parkinson adds:
“This is a typical example of the
New Deal type treatment of serious
ills in the body politic by ice packs
and stimulants instead of permanent
cures. The short period of rosy pros
p e r ^ that might be engendered by
increasing the price of gold would
never be worth the price that the
American people would inevitably
have to pay.”

H O W C U S T O M E R S FEE L
A B O U T S ER V IC E
CH A RGES
(Continued from page 19)
Clyde Rockholz, cashier, The Ex

We take pleasure in announcing the formation of

A. G. Becker & Co.
A PARTNERSHIP

M em bers o f
T

N
C

ork

hicago

oc k

toc k

E
E

xchange

T h e members o f this partnership are also stockholders o f
A . G. B e c k e r & co. i n c o r p o r a t e d , which will continue the
underwriting and distribution o f investment securities and
the purchase and sale of commercial paper.
The partnership and corporation will share offices and, in
the main, operate with identical personnel.
You are cordially invited to make use o f these combined
facilities for any investment service.
C H IC A G O 3

120 So. La Salle Street

NEW YORK 5

S A N F R A N C IS C O 4

54 Pine Street

564 Market Street

AND OTHER CITIES

Northwestern Banker, O c to b e r, 1947
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Federal Reserve Bank of St. Louis

change Bank of Adair, Iowa: “Our
service charge schedule seems to be
agreeable to our customers for the
reason that it takes into consideration
the actual expense involved in serv
icing the account, also allows the cus
tomer credit for the earning power of
his account.
“We were able to sell our customers
on the plan by taking time to explain
it to them when the charge was first
instituted. We also outlined the plan
in detail in the form of a letter and
inserted a copy with each statement
until every customer had an opportu
nity to become familiar with it.
“An account with three or less
checks charged, or out-of-town items
collected, is considered as inactive and
no fee is charged.
“ Our schedule provides a mainte
nance fee for each active account, plus
a fee for each check charged or out-oftown item collected during the calen
dar month, less a credit for each $100
of minimum balance. The credit for
minimum balance in the account is
easily administered and is absolutely
fair to the bank and to the customer.
A balance that does not remain in the
account for at least a full month does
not have any earning value to the
bank. Our charge is based strictly on
activity, which is in reality the meas
uring stick of expense involved in
handling the account. A customer
likes to feel that his account is of some
value to his bank, therefore the credit
allowance, although small, meets with
his approval.”

Investments

V p ir

Mio

f'o ust

Becker&Cownie,Inc.

50% Alienti of P ro- 11 ar

823-24 Insurance Exchange

of new homes in ron, Toledo, Cincinnati and Dayton,
115 key metropolitan areas of the Ohio; Cook County (Chicago), Illinois;
Milwaukee; Minneapolis, St. Paul; At
United States last year was more than
50 per cent greater than in 1939, the lanta; Nashville and Memphis, Tennes
annual Investors Syndicate survey of see; Camden, New Jersey; Birming
housing construction revealed re ham; Palm Beach and Miami, Florida;
Ft. Wayne, Gary, Indianapolis, South
cently.
The increase over 1945, when civil Bend, and Mishawaka, Indiana; St.
ian home building got under way late Louis; Richmond, Virginia; Greens
in the year, was 410 per cent. Total boro-High Point, North Carolina; Kan
new housing units built in these key sas City; and Los Angeles.
Cities which built approximately as
communities in 1946 was approxi
mately 412,455 against 101,511 in 1945. many housing units in 1946 as in 1939
include Boston, Providence, Detroit,
At the same time, average cost per and Seattle.
unit has increased by 45 per cent, from
Investors Syndicate also found that
about $4,725 in 1939 to $6,870 in 1946.
there had been a sharp shift away
There has been a sharp swing away from public housing. Although 13 per
from apartments to one and two-family cent of all housing constructed in
homes, the Investors Syndicate sur these key areas in 1939 was publicly
vey shows. While in 1946 there were built, only 5 per cent was public con
more than twice as many homes built struction in 1946.
as in 1939, there were 30 per cent fewer
apartments.

DES MOINES 9, IOWA

o n s t r u c t io n

“These figures,” declared E. E.
Crabb, chairman and president of In
vestors Syndicate, “indicate how seri
ously rental restrictions have affected
the construction of rental housing.
Although the demand for apartments
is very great, builders cannot find it
profitable to erect multiple-unit apart
ments and have concentrated on
single-occupancy homes for sale. The
small volume of apartments built dur
ing the war and under rent ceilings
will undoubtedly affect the housing
situation for many years to come.”
Housing construction in 1946 was
exceedingly spotty, the survey showed.
Despite the fact that demand was
great in virtually all of the centers
studied, a number of them showed
little increase in home building over
1939, while several showed marked
decrease.
San Francisco showed a decrease of
about 20 per cent under 1941 in the
number of units built, from more than
7,800 to about 6,150. Peoria, Illinois,
built only about 15 per cent as many
homes in 1946 as in 1939, slightly more
than 200 compared with nearly 1,500.
Other places showing decreases from
1939 were Bronx, New York, Kings
and Queens counties in the New York
City area; Chattanooga and Knoxville,
Tennessee; Jersey City; Philadelphia;
Tulsa, Oklahoma; El Paso, Texas; and
New Orleans.
Areas in which increased home
building was most marked included
Baltimore; Cleveland, Columbus, Ak
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Federal Reserve Bank of St. Louis

Phone 3-5189

Specializing in

MUNICIPAL
BONDS

QUAIL & CO.
Municipal and Corporate Securities
Davenport Bank Building
D avenport, Iow a
W a te rlo o O ffice, C o m m e r c ia l Bldg.

M em b er Chicago Stock E xch a n ge

MUNICIPAL BONDS
Since 1885

H. C. SPEER & SONS COMPANY
Established

Field Building

1885

135 South LaSalle St.
CH ICAGO 3

Telephone —

Randolph

0820

N orthw estern

B anker,

O ctober,

1947

Investments

Housing Squeeze
Both the lender and the buyer are
being badly squeezed in the present
era of extravagant house pricing and
low interest rates, L. Douglas Mere
dith said in effect in addressing the
Savings Bank Association of Massa
chusetts. Mr. Meredith who is execu
tive vice president of the National
Life Insurance Company of Mont
pelier, Vermont, and author of a cur
rently new book “How to Buy a
House” reiterated the demand for low
cost housing units, of which he has
long been a champion.
Mr. Meredith spoke on the topic,
“ Financing the House that Jack Built.”

After reviewing some of the matters
that have led to the present dilemma
in both buying and lending, he said it
was both politically impractical and
socially undesirable for bankers to re
tire to the sidelines because the game
was too rough. “The only possible
course for us is to remain in the ring
seeking continually to improve our
techniques of mortgage lending. The
net effects of a highly competitive
lending situation include,” he said,
“liberal appraisal of collateral, longertime borrowing, less rapid retirement
of debt, less exacting loan contracts,
acceptance of a high price level as
more or less permanent and a tend

ency toward general relaxation on
the part of lenders.” “Thus,” he con
tinued, “the risks become greater
while the returns for risk-taking de
cline. Unless the skill of the economic
managers is greater than some of us
believe, or unless our luck sees us
through, some day we shall say to our
selves ‘Why didn’t we realize that
prices would fall and prepare our
selves for the occasion?’ ”
He pointed to developments in the
method of construction, precut stud
ding, rafters and other component
parts, all leading toward the ultimate
all-out préfabrication of low-cost
houses. Likewise, there were improve
ments in mortgage lending, and by
way of a few illustrations he cited
the privilege of making payments on
principal in excess of regular amorti
zation; the deferment of principal
installments in case the loan has been
in good standing for a considerable
period of time, the privilege of in
creasing the loan without complete re
financing, and the further promotion
of the packaged mortgage loan idea.

Those Price Tag s

You have a standing invitation to visit the HAWKEYESECURITY Companies at any time, of course, but while
you're here for the Iowa Bankers Convention we would like
to extend a special invitation to see us.

The HAWKEYE-

SECURITY Companies are just across the street from your
convention headquarters.

Congratulations on your fine con

vention and enjoy the hospitality of Des Moines.
Remember, too, that teamwork is making your convention
a success . . . just as teamwork makes a success of your
business.
the

Teamwork is the basis of the relationship between

HAWKEYE-SECURITY

Companies

and

their

The Companies work closely with Agents . . .

Agents.

do all in

their power to help Agents build sales while performing
insurance service in their communities.

D E 5 MD I N E 5 7,

DAVENPORT,

Northwest ern Banker, Ocfober, 1947

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

I OWA

I O WA

Don’t look to your retailer to put
into effect the major price reductions
that people are always talking about
and which never occur.
Retailers, large and small, chain and
independent, dealing in every kind of
commodity, have fought one of the
most aggressive battles against price
inflation. They are on the firing line
—they get every consumer complaint
and have an intimate understanding
of consumer economic problems. They
have used every weapon in t h e i r
arsenal to hold price increases to the
minimum.
But that arsenal is limited. Retailers
must pay the going price for goods at
wholesale. Like all other business,
they must carry heavily increased
overhead, in the form of higher wages,
rents, taxes, supplies and everything
else. They must earn some kind of
profit or go to the wall. What they
have done is to cut their unit profits
to a low figure, and kept down ex
penses to the limit of their ability.
That has saved American consumers
untold millions of dollars, and will
save them millions more in the fu
ture.
Retailers will reduce prices if—and
when—wholesale prices and the un
avoidable costs of running a store come
down. Competition, which g r o w s
stiffer every day as more and more
goods are produced and the “easy
money” dwindles, will take care of
that. The price tags on the goods you
buy are an honest reflection of today’s
conditions.

IN S U R A N C E

H ea d lin es

YaaSee

The Story of W h at Life Insurance Does
is N ever Told in the Public Press
By MARTIN L. SELTZER
M a r t i n L . Seltzer I n s u r a n c e
Agency,

IRST, let’s comment on the head
lines you see and hear every day.
Tragedy— terror— calamity — hairraising, bloodthirsty, pessimistic, slan
derous, warrish propaganda dished out
by the newspapers and radio.
They put you to bed with it at night
until your prayers are—“ Please God,
keep the world right side up until
morning.” They wake you up with it
in the morning and send you out in the
world for the day thinking—“ Can 1
possibly survive the day?” Then they
give you “shots” of it at intervals all
day long. They seldom have a good
word for anything or anybody.
They remind me of a story my father
told me when I was a boy—about the
“ town character” with the “handlebar”
mustache who went to sleep in the sa
loon and the “boys” put some melted
limburger cheese in his “ mus-tach-io”
and when he awoke, he sniffed a few
times and went outside for air; soon he
returned, and the “boys” asked, “ Sam,
what’s the matter, you look rather
down at the lip?” Sam said, “Hell,
who wouldn’t, the whole world
stinks.” That’s the impression and
atmosphere the headlines of today
create.
To make the headlines, all you need
to do is become a public enemy “Bugs”
Moran, a “Scarface” Al, shoot your
wife or murder the “other” guy—rob a
bank or embezzle some funds, get
“crocked” and tell some fantastic tale
of “flying saucers” or cross wires with
the president.
You could go on doing good for a life
time and never make the headlines or
come to the notice of the public eye.
Oh, you may if you can give a “Carne
gie million” or have a fantastic reputa
tion of a “ Rockefeller dime,” but for

the average law-abiding citizen going
about doing good for his fellow man
and trying his best against the odds
created by the everyday “Headlines”
to make this world a better place in
which to live, his “ Headlines” will

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

BUILDING

M oines

Boy and Girl Graduate From College

Thirteen years after a foresighted
individual with an idea created a $10,000 College Fund.
Widow Receives Income for Life

A man who knew her husband de
livers check of $100 and will send a
like amount to her every month the
rest of her life. There is a possibility
of her receiving $35,000. Her husband
had only saved $1,400 of this sum.
Packing Plant Survives Depression

Hard hit by the depression along
with many other concerns, but is put
back on its feet by a man who put
$150,000 into the treasury.
Woman Hires Man to Run Farm

A salesman arranged with husband
to furnish $100 per month in wages
for 10 years. The farmer only put up
$640 of the wages.
Civil Engineer Miscalculated Speed of
Truck

“ N ot

As the
whom he
$100 per
engineer
$86.70.

M A R T IN L. S E L T Z E R
headlines, but good deeds”

never be seen. Nor, have you ever
seen the following headlines:
Widow’s Home to Be Foreclosed

A man who was a stranger up to
four years ago gave her $500 to pay the
mortgage and will send her a check
of $25 per month for the next eight
years.
Mother Remembered by Son

Man about town was requested by
son to deliver a $5,000 check to his
mother.

D id y o u kno w that adoption of our Cash Letter
insurance enables you to dispense with detailed
Cash Letter transcripts and keep only a duplicate
adding machine tape? Ask us for details.
F IR ST NATIONAL, B A N K

Des

CHICAGO

result of this error, a man
knew sends his wife and son
month for ten years. The
had only given the man

Box Manufacturing Company Builds
New Plant

This building program was made
possible by a friend of the president
who delivered a check for $100,000.
Girl Kept in School and College by
Her Father’s Friend

This friend arranged with father to
pay $100 per month while daughter
was in school and college and then
pay her $95 per month for life. The
father only put up $1,250 of the fund.

Scarborough & Company
Insurance Counselors
ILLINOIS

to B anks

4325

Northwestern Banker, O cto be r, 1947

Insurance

Two Sisters Return to University in
September

When they do return to their re
spective universities, they will receive
$100 each month while they complete
their education, which has been made
possible by a friend of their father’s,
who arranged a $10,000 “Educational
Fund” toward which the father had
only deposited $2,500.
The foregoing “Headlines you never
see” have been made possible through
the institution of life insurance. And
the “ man about town,” “the salesman,”
“the man with an idea” or the “friend

of the father” has been the writer giv
ing a few of his many experiences
over a period of almost forty years,
during which time his contributions
to society have never made the “Head
lines.” I know of other fellow under
writers who can match experiences
with mine and I have never seen them
make the “ Headlines” nor will the life
insurance services to the public of any
other underwriter make the headlines,
but he will build monuments of love,
respect, and good will in the minds and
hearts of those for whom he has done
good deeds, by providing “cash for
future delivery,”—The End.

JVe Pause to Pay Tribute to Our Friends of the Banking Fraternity
ivho are responsible in a large measure for our . . .

ACHIEVEMENT
. . . since 1927 under the Company’s present management and

Fare Prevention W eek
Calling on the nation to join in a
concerted effort to prevent fires, Presi
dent Truman has proclaimed the week
beginning October 5th as Fire Preven
tion Week.
In his proclamation, the President
said: “ I earnestly request every citi
zen to eliminate all possible causes for
destructive fire in his home and place
of business.” That plea goes to the
heart of fire prevention. The many
organizations whose business it is to
fight fire are doing a magnificent job,
and their efforts have been brought to
a peak of intensity this year. But they
cannot do much without public sup
port. The nation cannot provide an
army of fire prevention experts to in
spect every home and business build
ing, correct dangers, and see that they
stay corrected. All the authorities can
do is to tell us how to prevent fire—
and after that it is up to the individual.
If anyone doubts that fire preven
tion has assumed the stature of an
emergency condition, he need only
look at the statistics. During the first
six months of 1947 alone, fire losses
in the United States reached the stag
gering total of $369,276,000—and that
does not include the major portion of
the Texas City disaster. Loss of life
has shown a similar increase.

active program

GR O W TH IN ASSETS

JANUARY

INSURANCE IN FORCE

$229,391.00

1927

$4,549,000.00

$855.181.00

1932

$9,886,688.00

$1,032.830.00

1937

$12,085,169.00

$ 2 ,3 9 4 ,4 1 0 .0 0

1942

$ 2 2 ,1 5 1 ,5 3 7 .0 0

$ 6 ,2 0 2 ,4 8 8 .0 0

1947

$ 4 4 ,4 4 2 ,6 7 3 .0 0

FORTY YEARS
»1 Progress
W e are proud of our record
in the Insurance field and of

Now in Force Over

$ 4 7 ,5 0 0 ,0 0 0

Life Insurance

our Banker Representatives.
W e write a complete line of

Fire - Windstorm - Automo

POLICYHOLDER’S NATIONAL LIFE
INSURANCE

bile & Plate Glass insurance

COMPANY

HOME OFFICES
Fourteenth Street and Main Avenue
SIOUX FALLS

Northwestern Banker, October, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

SOUTH DAKOTA

FIRE INSURANCE COMPANY
NINTH & GRAND

DES MOINES 8, IOWA

“ Mutual Insurance Is Am erican
Insurance”

Insurance

Insurance in Force
For the first time in five years the
net gain of insurance in force in the
United States for the first six months
of 1947 is less than that of the corre
sponding period for the preceding year,
it is reported by the Agency Manage
ment Association. This survey is based
on the figures of 110 life insurance
companies representing 89 per cent of
the total Ordinary insurance in force
in the United States.
The Canadian Insurance in force
Survey to which 24 life companies
contribute their Canadian experience
shows that the net gain in Canada for
the first half of 1947 is slightly higher
than in the United States. This gain
represents a decrease from the gain
of the preceding year.
Figures for the United States Sur
vey, projected on an annual basis, put
the net gain for the first six months
of 1947 at 8.35 per cent insurance in
force at the beginning of the year.
For the same period in 1946 the figure
was 11.16 per cent. The difference in
net gain reflects a drop in production
from 14.89 per cent for six months in
1946 to 12.77 per cent in 1947, and an
increase in terminations from 3.73 per
cent for the first half of 1946 to 4.42
per cent in 1947. The absolute gain,
however, is still higher than it has
been for any preceding six months
period of any year except 1946.
A comparison of Canadian business
for the first part of 1947 lists new busi
ness at 14.13 per cent and terminations
at 4.64 per cent, reflecting a net gain
of 9.49 per cent. For the same six
months in 1946 new business was 15.27
per cent, terminations 4.20 per cent
and net gain 11.07 per cent.

and brought to a vote during the next
session. It is thus a live issue, whose
significance should be thoroughly
understood by the American people be
fore Congress convenes again.
Raymond Moley a c c u r a te ly de
scribed the measure when he said: “ It
proposes a vast range of services for

The Wagner-Murray-Dingell com
pulsory health insurance bill was by
passed by the last session of Congress.
In all probability it will be debated

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

practically everyone who wishes free
service. . . . It covers all sorts of med
ical, dental, nursing and hospital serv
ices. In part, it would be paid for by
a tax on wages and on payrolls and,
in part, by general taxation. Its rami
fications go into state and local public
health, into hospitals, private volun-

BONDS
at worth-while
savings
H e r e is why increasing num
bers of Iowa banks are recom
mending Employers Mutual for
all types of fidelity and surety
bonds—
RATES — Substantially

lower on most types

of bonds.

Probate Bonds
The P o litical Doctor

Public Official Bonds
C ity , School
C o u n ty, State

SECURITY —Largest,

strongest company in
Iowa.
Assets over $12,000,000.
On U. S.
Treasury Dept. Approved List.

License Bonds

SERVICE—An

Beep,

every locality.
bond needs.

C igare tte ,
etc.

Individual and
Schedule Fidelity
Bonds
Contract Bonds

Iowa company. Agents in
Prompt service on all your

W rite fo r inform ation on this B E T T E R bond
ing service fo r your customers.

Co L WILLIAMS, Manager, Bond Dept.

Northwestern Banker, O c to b e r, 1947

Insurance
financial cost of this proposal. The
best estimates place it at between $4,000,000,000 and $6,000,000,000 a year. It
would be a very long step toward
complete socialization of medicine. It
would make doctors employes of the
state, and embroil them deep in poli
tics. It would discourage experiment
and research, and destroy initiative.
And, finally, it would undercut the
finest system of medical care existing
in the world.

tary health associations and the
like. . . .
“Nothing was ever conceived or de
vised which would more effectively
reduce the medical profession to de
pendence on the government and tie
state and local agencies to the wheels
of Federal government. . . . It is a
threat which deserves far more public
attention than it has yet been receiv
ing.”
No one can accurately determine the

1 — 2 — 3 — 4 — 5 — 6 — 7 — 8 — 9 — 1 0 — 11

ELEVEN STRAIGHT YEARS

CHAMPIONS
OF THE UNITED STATES

CASH . . . and

. . . VOLUME

W e Invite Other Banks to Investigate
Our "Bankers” Set-up
W . K. NIEMANN, Mgr.

The

NIEMANN

Agency

Bankers Life Company of Iowa
Nine-O-Nine Fleming Building

Des Moines

We of the NATIONAL FIRE GROUP
Extend Greetings to the

Stretching the Dollar
The trend in retailing has been to
ward lower distribution costs and
smaller margins of profit. As an ex
ample, it was recently reported that
over-all markup in one city for gro
cery, meat and produce dealers was as
low as 10Vz per cent, while operating
costs consumed 8 per cent.
All kinds of retailers have been
studying ways and means of cutting
expenses and putting economies into
effect. The chains have been leaders
in the undertaking, and the independ
ents have followed the trend. This is
retailing’s way of meeting the tough
cost-of-living problem. It has no con
trol over wholesale prices. What it
can and is doing is to reduce the spread
between the price paid the manufac
turer and the price charged the con
sumer.
As a result, price increases have
been less than would otherwise have
been the case. That may not seem
much of a service to consumers who
have been struggling to make shrink
ing dollars buy more. But it has un
doubtedly resulted in saving a great
many billions of dollars for the Ameri
can people. Retailing alone can’t stop
inflation—but it does help restrain it.
It is any man’s guess when—and if
—prices will come down. Recent de
velopments indicate that there is little
immediate hope for reversing the
wage-price spiral. But regardless of
what may happen, retailing will give
the consumer the best possible return
for his money.

IOWA BANKERS ASSOCIATION
William K. Hankinson
Will H. Harrison

Carl M. Hall
Robert L. Aschim
Don O.Jones

Andrew A. Ingram
Cy Carpenter

507 10th Street, Des M oines 9, Iow a

Greetings to
IOWA BANKERS!
L. E. ELLIS & CO„ Gen’l Agcy.
H. A. Petersen

H. G. Zimmerman
415 Securities Building

Northwestern Banker, O c to b e r, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

You will be surprised how
our EXTRA M A N in your trust
department can increase your
Trust Business.
Connecticut General men are
trained in Complete Estate
Analysis and are in a position
to sell to the client the services
of your Trust Department and
your Trust Officers.
W h en a Connecticut General
specialist from the Charles M.
Maxwell A gency works with
bankers, they find out quickly
that he is cooperative and
knows bankers' problems.
For full information on this
valuable service address
CHARLES M . MAXWELL
640 Des Moines Building
Des Moines

Alice L. Voris

DES MOINES

Y O U R "EXTRA '* TR U ST
O F F IC E R

IO W A

Telephone 3-7644

Iow a State M anager
Connecticut General
Life Insurance Com pany
Hartford, Connecticut

Insurance

l ' r « / í ' í ' í i » n for Properties
In Your
I F ANY of the properties carried in
I your mortgage portfolio have been
damaged or destroyed by fire recently,
you no doubt have discovered all too
graphically that the statisticians are
right when they say that today’s
building dollar is worth only 56 cents
compared with the 1941 dollar, and
that the insurance people aren’t fool
ing when they declare that a large
percentage of properties are under-in
sured on the basis of present replace
ment costs.
This is why the mortgage banker
should be concerned over the nation’s
soaring fire loss and the steps that
are being taken to lower the annual
toll.
For the first six months of this year,
total fire damage amounted to $369,276,000, according to the National
Board of Fire Underwriters. This is
a 23.6 per cent increase over the cor
responding period of 1946, and if losses
continue at the present rate, 1947 will
go down as the worst fire year in his
tory. The six-months’ total is greater
than the whole year’s losses in any
year from 1933 to 1942, inclusive.
In an effort to halt and reduce this
enormous drain on the nation’s econ
omy, every possible avenue is being
explored. Insurance companies, fire
protection groups, mortgage lenders
and municipal and federal government

officials, insurance company repre
sentatives and other interested per
sons.
One of the first things the Confer
ence discovered was that at least onethird of the communities in America
have no building code of any kind and
hence there is nothing except the
builder’s conscience to prevent flimsy,
dangerous construction in those locali
ties. Furthermore, the majority of
codes which do exist are more than 20
years old “and most of these need
serious revision,” in the words of Fed
eral Works Administrator Philip B.

)lorti/nprPortfolio
officials have intensified the continuing
campaign to prevent fires and to hold
damage to a minimum once a fire
breaks out.
So serious is the situation that the
President’s Conference on Fire Pre
vention was set up by the White House
several weeks ago. This is a nonbureaucratic group, and is composed
of fire prevention experts, municipal

T o von a n d

TOM a n d voti

each and everyone of you, our greet

ings and best wishes.

May you enjoy your

convention and profit from your meeting.
As it has been our pleasure to serve you in
the past, so may it be in the future. The
Saint Paul-Mercury Indemnity Company is
always ready to help you.
For full information on our B A N K E R S
B L A N K E T B O ND S , consult our nearest

COMPLETE
SERVICE
fo r

BANK AGENCIES
H O SP ITA L

IN SU R A N C E

agent or Company Office.
MINNESOTA

HOME OFFICE
111 West Fifth Street
ST. PAUL 2, MINNESOTA

N E BR A S KA

D.
W. LYLE, Manager
C. D. HOHAUS, State Agent
E. W. SKOOG, Special Agent
622 Insurance Building
OMAHA 2, NEBRASKA

IO W A

H. P. MARTIN, Manager
M.
TOUSSAINT, State Agent
R. A. ALEXANDER, Special Agent
Iowa Building
DES MOINES 9, IO W A

LIFE - A C C ID EN T - H EA LT H
SOUTH D A K O TA
JU V EN ILE

IN SU RA N CE
and

A N N U ITIES

W rite

Phone

us for Details

RALPH E. DeMARTS
General Agent

NORTH D A K O TA

N.
P. WENGE, Manager
H. W. ENGER, State Agent
W. W. LOUDON, Special Agent
Telephone Building
ABERDEEN, SO. DAKOTA

A. C. BRUNSVOLD, State Agent
O. A. SCHOLLANDER, State Agent
W. C. OAKES, Special Agent
418 Black Building
FARGO, NORTH DAKOTA

W. H. MASHEK, State Agent
A. M. TIMM, Special Agent
401 South Phillips Avenue
SIOUX FALLS, S. DAKOTA

G. H. KALBFLEISCH, State Agent
302 1st Avenue Building
MINOT, NORTH DAKOTA

The COLUMBIAN NATIONAL

K T C U rU

LIFE INSURANCE COMPANY
Telephone 4-4343
1200 Paramount Bldg.
DES MOINES

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

In d e m n i t y C o m p a n y
SPECIALISTS

BANK

INSURANCE

Northwestern Banker, O c to b e r, 1947

Insurance

Fleming, general chairman of the Con
ference.
As a result of these findings, one of
the top objectives of the group is to
establish a standard basic building
code for use throughout the country
and to modernize all existing laws to
require the greatest possible use of

fire-safe building materials and con
struction techniques. Unless codes
have been kept up to date they ignore
the countless new and improved mate
rials that have been developed through
the past two decades and the knowl
edge gained by builders and archi
tects on fire-safe building practices.

Your Allied Mutual Automobile Policy
Qualifies Under the Safety Responsibility Law
Every owner of Bodily Injury and Property Damage Protection
can rest assured his policy qualifies under the new Iowa Safety
Responsibility law which is in effect next October 1.
Your Allied Mutual Farm Liability Policy
Qualifies Tractor Owners Under the Law
Investigate Allied Mutual policies for all casualty lines.

You'll

find them modern, liberal and backed by quick, able claim service.
"ALLIED MUTUAL P A Y S ."
IN V E S T IG A T E T O D A Y

A L L IE D

M U TU AL

CASUALTY COMPANY
Harold S. Evans,

H ub bell Building

Northwestern Banker, O cto be r, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

President
Des M oines 7, Io w a

Elimination of as much combustible
material as possible is being urged
through the use of steel structural
members, steel window and door
frames, fire-resistant roofs, walls and
plaster, and the blocking off of areas
to prevent rapid spread of flames
should a fire occur.
Most home fires start in the base
ment. Hence, it is recommended that
this area be blocked off from the rest
of the house with a fire-retardant ceil
ing of gypsum plaster on metal lath
or any one of the many fire-resistant
building boards, and the installation of
a heavy, flush-type door at the head of
the basement stairs with an automatic
closing device so it will remain closed
when not in use.
Of course the amount of the mort
gage is covered by a fire policy—if it
isn’t, something is seriously wrong
with the bank’s mortgage department
—but a mortgage lender owes it to the
mortgagor to look further ahead than
that.
The mortgagor should be impressed
with the fact that he should have
enough insurance to cover his equity.
Unfortunately, this is not always the
case, especially today with replace
ment costs 40 to 50 per cent above the
1939 level.
This is one of the reasons that a
great many underwriters are stressing
the co-insurance clause which is now
being widely written into policies.
Under it, the assured agrees to main
tain insurance equal to at least 80 per
cent of value at all times and the com
pany agrees to pay in full on any loss.
If this is called to your mortgagor’s
attention you will be performing a
distinct service for them because few
persons understand the idea and the
average mortgagor does not realize he
is under insured.—The End.

O ld ste rs Honored
DeLuxe Check Printers, Inc., manu
facturers of bank checks, recently an
nounced the formation of a 25-Year
Club to honor veteran members of its
organization.
Six employes, five men and one wom
an, became charter members of the
club at a recent ceremony at the com
pany’s St. Paul plant.
Gold watches were presented to the
men and a set of silver service to
the lone woman by W. R. Hotchkiss,
founder of the company and present
chairman of the board of directors.
The company, founded in 1915, has
grown from a small print shop employ
ing two people, to a nationwide insti
tution employing over 600 people, in
the short space of 32 years.

♦

Insurance

TSto
P ublic Speeds to
Mts MMenth

JULIEN H. HARVEY

M ana g in g Director
N ational

HILE thousands of persons an
nually lose their lives on the
nation’s streets and highways,
a curiously apathetic public continues
to go its way, probably wondering
what is the real cause for our high toll
of traffic deaths, but never getting
much further than the wondering
stage.
If the truth were known, every
driver and pedestrian would realize
that he or she holds the secret to the
cause or prevention of traffic accidents.
The secret is the individual attitude
of the driver or pedestrian toward ac
cidents and toward general courtesy
on the road. If the attitude is bad,
then accidental deaths and injuries in
crease. If the attitude improves and
the individual becomes more careful
and courteous on the road, then thou
sands of lives can be saved.
Unfortunately, the problem of poor
public attitude toward accidents—
which may also be termed careless
ness—is a problem that has to be
solved by each single individual. It
cannot be completely solved by mass
hypnotism, regulation, or any other
general device. All the efforts of
today’s safety and traffic experts in the

Connecticut Mutual
Life Insurance Co.
p p v

Part-Tim e

For example, all the education, en
forcement and engineering we can
muster will be of little avail if the
individual driver persists in the atti
tude that the specter of accidents will
not touch him and he can indulge in
excessive speed and reckless driving.
All safety specialists agree, and the

G ood Company with
which to Insure

G ood Company
to Represent

Oldest National Mutual Fire Insurance Company West of
the Mississippi.
Assets --------------------------------------------------------------- $ 3,796,136
Savings to Policyholders Since Organization___ $19,460,241

MILL OWNERS MUTUAL

Inquiries In vited for B ro k e ra g e
or

three E’s of traffic safety—Education,
Enforcement, Engineering—are sim
ply means by which poor attitude and
carelessness on the part of the indi
vidual are minimized. In the final
analysis, each individual must do his
or her part if our national traffic death
toll is to be wiped out.

Conservation Bureau

FIRE INSURANCE COM PAN Y

Contracts

O F F IC E R S

9 V P

Sherry R. Fisher
General Agent

H. B. Carson .....................P residen t
F. D on M eurer . .. ..A sst. S ecreta ry
L. K. S h a r p _____ V ice P r e s .; S ecy.
D on T. KiRKMAN....Assh S ecreta ry
L. M c K ib b a n .............V ice P residen t
H. E. H udelson ......Supt. o f A g en ts
J oh n W ise . ....................... T reasu rer
I. E. S a m s ......M gr. Canadian D ept.
C. W . L e t z ............. A sst. T reasu rer
J o h n W aters ..........A sst. Mmicrger,
Canadian D ept.
J. E. R obb...................................... A sst. S ecreta ry

912 Fleming Building
DES MOINES

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

IOWA

Des Moines, Iowa

Hamilton, Ontario

Northwestern Banker, O c to b e r, 1947

Insurance

National Conservation Bureau figures
bear out their contention, that the
greatest single cause for traffic fatali
ties is speed. We maintain that most
speed limits are now too high for
safety, but agree that the question of
what is sane in speed limits depends
somewhat upon street and road condi
tions. Since these conditions vary
with terrain, denseness of traffic and
especially with weather, it is up to
the man behind the wheel to deter
mine whether or not the existing speed
limit prescribed by law is a safe driv
ing speed.
Last year approximately 20 per cent
of the drivers in this country involved
in fatal automobile accidents were ex
ceeding the speed limit. Another 6 to
8 per cent were exceeding safe speeds
although they were traveling under
the statutory limit, and still another 4

per cent were driving too fast for ex
isting conditions where no speed limit
was indicated. Fatal accidents where
speeding was a cause were almost
twice as numerous in cities as they
were in rural areas.
Next to speed, 1946 nationwide
figures show that driving on the wrong
side of the road, including passing, is
the most frequent traffic violation.
Driving under the influence of alco
hol is rated as the next greatest cause
for traffic fatalities. Following these
come a long list of minor, but obvi
ously careless, violations such as fail
ure to give right-of-way, disregarding
traffic officer’s signal or stop signs, im
proper turning. All are reckless driv
ing. They can be avoided if each in
dividual cooperates.
Frequent and prolonged suspension
of driving privileges for traffic viola-

NEWELL C. DAY saying . . .
BANKERS using our Broker's kit understand
why our Davenport organization's fiftyfifth year is its best. Sales proposals made
up on all cases on request.
Write or call

NEWELL C. DAY, Gen'l Agent
Equitable Life Ins. Co. of Iowa
730 Davenport Bank Bldg., Davenport, Iowa
1867 ■• .

E i g h t y - fi r s t A n n iv e r s a r y

Y ear . .

. 1947

Greetings

Crum and
F orster

to
Iowa Bankers

M anagers

FROM
United States Fire Insurance Co
The North River Insurance Co.
W estchester Fire Insurance Co.
British-America A ssurance Co.

The Northwestern Mutual Life
Insurance Co. of Milwaukee

fions would, it is agreed, prove a great
aid in creating a wholesome respect
for safety rules and law enforcement.
But self-discipline on the part of the
driver is the most important factor to
be considered.—The End.

Training Course
The 1947 trust development course
for training trust new business men
of Chicago banks, given by North
western University School of Com
merce with the cooperation of the
trust departments of Chicago banks,
opened September 15th, and continued
through Friday, October 3rd.
Last fall, Northwestern University
conducted a similar course which was
a great success. From the experience
gained with this first course the School
this year will run for a three-week
period and greater emphasis will be
placed on estate analysis and planning.
The course is intended to meet a
growing need and demand from the
public for the services of trust com
panies and is designed to train addi
tional trust representatives of Chicago
banks to give competent assistance to
the public in formulating their estate
arrangements.
John L. Chapman, trust officer of the
City National Bank & Trust Company,
Chicago, is chairman of the committee
of trust men cooperating with North
western University. The outline of
the course and the selection of the
faculty was carried out by a sub-com
mittee, headed by Harve H. Page,
second vice president of The North
ern Trust Company, Chicago.

G R E E T I N G S

to the

IOWA BANKERS
ASSOCIATION

KIMBALL J. M. CORMACK

W estern Assurance Co.

GENERAL AGENT
635 Insurance Exchange Building
Des Moines

INTER-STATE BUSINESS
MEN’S ACCIDENT
COMPANY

W . H. FAULKNER
ACCIDENT
SICKNESS
HOSPITAL PROTECTION

State A gent
HOMER TEMPLETON
M AX D. MILLER
C. R. RAUMA
R. B. BRECKENRIDGE
S pecial A gents
505 Insurance E xchange Building
Office T elephone No. 4-5932
DES MOINES, IOW A

Northwestern Banker, O c to b e r, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

"The

Dividend Paying Company of
America"

Robert A. Brown, President
Des Moines, Iowa

Insurance

F ive 0riiities lo Ai ore Saies
ITH the volume of insurance
premiums going forward in
leaps and bounds, it is time for
every ambitious insurance salesman to
ask himself if he is getting his share
or just drifting with the tide, Francis
W. Potter, field supervisor of the
Aetna Casualty and Surety Company,
declared recently.
“ There are many reasons why some
agents are more successful than oth
ers,” Mr. Potter stated, “but after
going about the country talking with
agents and discussing their problems,
T have come to the conclusion that
most successful agents follow certain
definite sales fundamentals.”
Mr. Potter then outlines these funda
mentals as follows:
“Principle number one: Make sell
ing easy,” he asserted. “ I like to think
that selling is simply having a pleas
ant conversation while being paid for
it. For instance, many agents are
very successful with the ‘by the way’
approach, especially with the simpler
type policies. While walking down
the street, they will hail an acquaint
ance and say, ‘By the way, Bill, have
you heard about the new Compre
hensive Personal Liability Policy
which protects you and all your fam
ily in case you injure someone or
cause damage to someone else’s prop
erty?’ I know of one agent who sold
over 100 of the new Comprehensive
Personal Liability Policies in a little

over a month by using the ‘by the way’
approach. He not only made over
$400 in commissions, but as he told me:
‘had a grand time doing it.’
“Principle number two: Use the
phone and save time. The same poli
cies which can be sold in a snappy
conversation on the street can also

be sold over the phone. In this con
nection, it has been demonstrated that
the use of the personalized circular
followed up by phone is one of the
most effective ways of saving time and
getting a large number of new custom
ers on the books.
“Principle number three: Get down
----------------------------------- --

$250 PER MONTH
FOR LIFE!
— commencing Age 65!
•¥• *
If you

do not r e a c h

Age

65, y o u r

fa m ily w ill r e c e iv e $250 p e r month
until you w ou ld h av e been A g e 65.

Also, cash values and total
disability Income!

★

Auto Financial
Responsibility in

INSURANCE
PROTECTION
According to Law you DON’T
need Auto Insurance, BUT, be
fore you have an ACCIDENT
see us about the New Auto
Financial Responsibility Bill.
Write or Phone

★

T. D. CARN AH AN
General Agent

The Minnesota Mutual
Lite Insurance Co.
913 Savings & Loan Building
Des Moines

You Should Represent
“ The Dividend Paying

H O P K IN S

IN SU R A N C E

Agency
Insurance Counsellors
206

S e c u r it ie s
Phone

Building

4-5253

DES MOINES 9, IOWA

S p eck / Agents

Company of America"
In Your Territory!
State Farm Membership Plan gives
you more insurance for your money.
A perpetual policy has saved policy
holders over $44,000,000 since 1922.
One million three hundred and fifty
thousand automobile policies in
force.
Over 7,000 agents in 43 states and
Canada.
State Farm Mutual policies are non
assessable.

W e Have 19 Banker Agents in
Southeastern Iowa.
W rite:

James H. Copeland

301-2 First Nat. Bank Bldg.,
Davenport, Iowa
for contract

The Northwestern Mutual Life
Insurance Co. of Milwaukee

Iowa State Agency
Royal Union Building
Des Moines, Iowa

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

R. S. Ingham
A. B. MehafFey
T. R. McDonald
R. J. Mugge

★

Hartford Fire Insurance Co.
Citizens Insurance Co.

Write for FREE Booklet for details.

State Farm Insurance Co's.

C. D. Wherry

Ins. in force_____ $5,045,769,692
Assets ___________

2,019,054,746

Room 700, 507 W . 10th Street
DES M OINES

90 Years of Service to Policyowners
Northwestern Banker, O c to b e r, 1947

Insurance

to business. Most agents who are
building a business and are ambitious
to get ahead figure it is necessary to
make at least 15 sales interviews a day.
This is what one agent calls an ‘honest
day’s work.’ But if you are to secure
these 15 sales interviews, you must
avoid arguments with your prospects
and keep them in a positive frame of
mind. One of the surest ways to do
this is to get down to business—
quickly.
“Principle number four: Make a
proper diagnosis for the larger risks.
Too many agents, when they go out
to solicit a fair-sized commercial risk,
‘step in where angels fear to tread.’
As a result, they get involved in diffi
culties which easily could have been
avoided if they had taken the time to
study the risk in advance. Then, once

the risk has been studied, a special
proposal should be prepared. Armed
with this proposal, the agent is now
ready for the last, and most important
step of all.
“Principle number five: Give each
prospect the right to vote. With a
complete proposal in front of your pros
pect, it is an easy matter to go up and
down the various coverages listed and
discuss them. On every form, the
prospect is asked to vote—to indicate
whether or not he wants the coverage.
It is surprising how few buyers of in
surance want to be recorded as having
said ‘no’ to some essential form of pro
tection.
“ The methods outlined are all so
simple,” Mr. Potter said in review,
“they usually make selling seem easy
instead of difficult. For the smaller

DISTRICT M ANAGERS
B. T. Agard, Sioux City
D. A . Epperly, Atlantic
H. G. Griffith, M ason City

Robert Smyth, Ft. Dodge
R. L. Swarzman, Des Moines
J. E. W alm sley, Burlington
K. L. W arboy, Cedar Rapids

A gency Manager
Life A ssu ran ce S o c .

of U.

1220 Des Moines Building
Des Moines, Iowa

The

★

THE EQUITABLE LIFE

CURTIS W. POOLE
E q uita ble

★

HOME FLEET

EXTENDS GREETINGS

ASSURANCE SOCIETY
OF THE UNITED STATES

Specializing

Mamed D irector
Clarence J. Ruethling, assistant
cashier of the First National Bank of
Chicago, has been appointed a director
of the Export Managers Club of Chi
cago, Inc. This is the first time in
the history of the organization that a
banker or service member has been
elected to this position, which was
made possible by a change in the by
laws of the Club. He has been a mem
ber of the Export Managers Club of
Chicago since 1931.

D irector of R esearch

C. E. Miller, Waterloo
R. A. Roth, Dubuque

★

policies, get into the habit of saying
‘by the way’ to everyone you meet. Use
the many excellent circulars provided
by most insurance companies. Write
a short personal message on them and
follow them up by phone or personal
interview. Save time by getting down
to business, and last, but not least, be
sure to give your prospect the right to
‘vote.’ You’ll be surprised how many
times he’ll say ‘yes’ to a coverage in
which you never thought he would be
interested.”—The End.

BOND
REQUIREMENTS

Eugene M. Mortlock, formerly vice
president and mortgage loan officer of
the Gramatan National Bank and Trust
Company, Bronxville, New York, has
been appointed as director of research
in mortgage and real estate finance of
the Savings Division of the American
Bankers Association, it was announced
by Harold Stonier, executive manager
of the association Mr. Mortlock will
also serve as the assistant secretary of

Bankers:
W e specialize in
writing

to m em b e rs o f the

Automobile -

for

Iowa Bankers Association

Investment Bankers
■

•

WILLIS
THE HOME FLEET
E. H. Davis

M artin E. A egerter

A rt E. Holm

W m . D. Gehringer

L. J. W herry

Coy C. Cochran

L. W . Roland

C. S. Cathcart

and
MOORE
General Insurance

W . F. Roberson

201 Liberty Bldg., Des Moines

1201 Des Moines Bldg.

GENERAL AGENTS FOR
CONTINENTAL
CASUALTY COMPANY

DES MOINES

Northwest ern Banker, O c to b e r, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

and

Fire Insurance
★

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
M t. P le a s a n t, Io w a
E. A. HAYES, President
O. T. WILSON. Secretary
Established 1929

Insurance
the Savings division. He assumed his
duties with the association last month.
Mr. Mortlock brings to his new posi
tion twenty years of broad experience
in the commercial banking field as
well as a savings and home financing
background. Besides his experience

Mr. Mortlock will be in charge of the
Department of Research in Mortgage
and Real Estate Finance, which has
been merged as one of the working
groups of the Savings division. The
division is headed by J. R. Dunkerley,
deputy manager of the association.

Dividend
The board of directors of The First
National Bank of Chicago at their reg
ular meeting declared a dividend of
$2.00 per share on the capital stock of
the bank, payable October 1, 1947 to

G R E E T IN G S

stockholders of record September 25,
1947.

Opens Office
A travel and financial office has been
opened in Interlaken, Switzerland, by
the American Express Company, Inc.,
with Robert E. Bucher in charge.
In addition to handling travel and
allied baggage service, the office will
provide facilities for sale and encash
ment of financial paper and purchase
and sale of foreign exchange.

OUR

MANY

IO W A BAN KER FRIENDS!
W e sincerely appreciate the m any fine business contacts we
have enjoyed for years among members of the Iowa Bankers
Association.

W e specialize in Credit Life Insurance
E. M . M O R T L O C K
N ow with the A. B. A.

and are the only Iowa company offering
this type of protection to Iowa banks.

with the Gramatan National Bank and
Trust Company, he has been more re
cently assistant to the president of the
First Federal Savings and Loan Asso
ciation of New York as well as man
aging vice president of the Bronx Fed
eral Savings and Loan Association.
In his new position at the A.B.A.,

The
Connecticut Mutual
Life Insurance
Company
Over one hundred years of

Webster Life Insurance Company
1733 Grand Avenue, Des Moines, Iowa

We Specialize in

BANKERS BLANKET

C om plete lines o f
LIFE POLICIES
ACCID ENT

and

INSURANCE

G R O U P INSURANCE

F0R3ERY BONDS
—

—
Everything to fit the needs o f

Dependable Service

Your Inquiries Invited

the insurance buyer.
E. H. SNOW
General Agent

Eastern Iowa A gency
PAUL C. OTTO

WITMER-KAUFFMAN
EVANS CO.

f l E T N ft
LIFE INSURANCE COMPANY

General Agent

(E s t a b lis h e d 1892)

1112 Davenport Bank Building
Davenport, Iowa

410 E q u ita b le Bldg.

Third Floor, Hubbell Bldg.

D es M oines

Des Moines

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

N orth w e ste rn B a n k e r , O c t o b e r ,

1947

W h ere the corn grow s tall.

•*

JLh a t ’s Iowa, all right, but corn is only part

of the state's farm picture . . . The Hawkeye State’s
nearly 2 6 million acres of “Grade 1” land are
one-fourth of the total for the entire country. On them

last year 661 million bushels of Iowa corn were raised

Th,

rightfully p P i e ° f IO
growth as rOUd of
greztest f ° ° e of

—an average of 60 bushels p er acre—a good share of
which went to fatten some 14 million hogs for market.

^ e; : e; 7

Iowa’s high rank among grain and meat producing

^■onai
b^ b e e n b

areas is reflected by the last nation-wide agricultural
census which gave the state 24 firsts, 10 seconds and

°f

C
b 0 t ^ P o n den7 h^
broader m
bank:

6 thirds . . . The pay-off: $1,700,000,000 farm income
for Iowa in 1946.

• • • t

NATIONAL BANK OF MINNEAPOLIS
h en r y e

----- D E P A R T M E N T
m

. o.

j. j.

, Vice President
Assistant Vice President

gra n g a a rd

m a lo n ey

Northwestern Banker, O cto be r, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

atw ood

BANKS

m a r t in

d o w n es

,
,

President
AND

B A N K E R S ----------------------------------------------

Assistant Vice President
Assistant Cashier

Member Federal Deposit Insurance Corporation

Assistant Cashier
, Assistant Cashier

G. s .

h en r y

co rch ra n

63
former Northern National Bank in
Duluth.

i n n e s o t a

N EW S
JOHN CARLANDER
President
Faribault

ROBERT E. PYE
Secretary
Minneapolis

Elected C ash ier
Arthur S. Birkemeyer was elevated
to the position of cashier of the State
Bank of Springfield, Minnesota, at a
meeting of the board of directors. He
takes the place of E. L. Nippolt, who
died suddenly. Mr. Birkemeyer has
worked at the bank for 25 years and
has been assistant cashier for many
years.

Mr. and Mrs. Johnson have no defi
The Farmers and Merchants State nite plans but mean to do some trav Nam ed P resid ent
Ben I. Vetter, vice president of the
Bank at Alpha, Minnesota, observed its eling.
Farmers and Merchants State Bank,
thirty-sixth birthday last month under
New Ulm, Minnesota, for some years,
its original management and with new
Clearinghouse M eeting
records for growth.
The tenth annual meeting of the was elected president at a meeting of
F.
W. Striemer, president, said, “To Northwest Clearinghouse Association the board of directors. He succeeds
day we have the largest deposit of all was held near Baudette, Minnesota, re the late Dr. Vogel. Mr. Vetter has
been a director of the bank for many
time with totals of more than $600,000, cently. Representatives of t w e l v e
years.
and we are still going strong.”
banks were present and held a busi
The vice president was not elected
ness meeting at five in the afternoon,
at
the directors’ meeting, and this va
at which the following officers of the
C ash ier Resigns
cancy will likely not be filled until
association
were
elected
for
the
ensu
William Nagel, who has been cashier
the annual meeting.
of the Home State Bank of Kandiyohi, ing year:
The vacancy in the board of direc
W.
R.
Siems,
president,
First
State
Minnesota, for the last 21 years, has
tors,
caused by the death of Dr. Vogel,
resigned his position and will leave Bank, Williams, president and director
also was not filled. This, however,
for
Lake
of
the
Woods
county.
with his family for Grand Rapids,
will be given attention in the near
A. E. Laufenburger, cashier, First
Michigan, to reside.
future.
Succeeding Mr. Nagel as cashier of National Bank, Roseau, vice president
the bank is Otto G. Olson, who had and director for Roseau county.
Officer Resigns
been in a bank at Zumbrota for the last
A. L. Wikholm, cashier, Northwest
Jake Hanenburg, who has served as
22 years. Mr. and Mrs. Olson and their ern State Bank, Hallock, secretarythree children have arrived in Kandi treasurer and director for Kittson director and vice president of the Ogilvie, Minnesota, State Bank since its
yohi and Mr. Olson has taken over his county.
organization in 1945, recently resigned.
new duties.
A. W. Hensrud, cashier. Union State
At
a meeting of the board of directors,
Mr. Nagel has also sold his stock in Bank, director for Pennington county.
G. G. (Gay) Klatt was elected a direc
the bank to Mr. Olson.
R.
J. Schriber, vice president, State tor to fill the vacancy.
Bank of Warren, director for Marshall
Mr. Klatt has served as cashier of
C ash ier at C arlo s
county.
the bank since it opened for business.
Otto P. Rakness has been offered and
After the business meeting a ban Previous to his service in the U. S.
accepted a position as cashier of the quet was served to 88 guests. These Army Air Corps he was employed for
First State Bank of Carlos, Minnesota, included bank officers, directors and several years in the Kanabec State
near Alexandria. He has taken over employes, their wives and lady friends, Bank.
his new duties.
visiting bankers and representatives
For the past year and a half he has of corresponding banks in Minneapo Com plete Rem odeling
operated a successful insurance, real lis, St. Paul, Chicago and Duluth. Local
G. E. Maier, vice president and cash
estate and service office.
visitors included S. D. Sheldon, G. N. ier of the Cherokee State Bank, St.
Millard and Mr. and Mrs. Harold L. Paul, advises that work has started on
Hanson of International Falls, Mr. and a complete remodeling program for his
M arks A n n iv e rsa ry
Miss Irene Wilson, vice president of Mrs. C. M. Berg of McIntosh, Carl institution.
Moen of Baudette, Mr. and Mrs. H. W.
The bookkeeping department will be
the St. Cloud State Bank, St. Cloud,
Minnesota, recently observed her 25th Smith and Mr. and Mrs. W. W. Smith moved from the balcony to a new loca
anniversary as one of the few women of Sleepy Eye and Mrs. T. P. Lang- tion in the basement of the building.
A new department for safe deposit
bank executives in the northwest. She mack of New Ulm.
boxes will be installed in addition to
started in the same bank as a clerk in
many new and m o d e r n features
1922.
A ssista n t C ash ier
throughout
the bank. The work is
Promotion of Clyde V. Stube to as
sistant cashier at the Western National expected to be completed by the end
Sells Interest
of this year.
Emanuel (E. E.) Johnson, Sherburn, Bank in West Duluth, Minnesota, was
announced
by
Alfred
Hoel,
bank
presi
Minnesota, banker for all but one of
Phyllis Sandahl
his 37 years in business, has sold to the dent.
Funeral services for Miss Phyllis
A World War II veteran, Mr. Stube
other stockholders his interest in the
Farmers State Bank, and has retired. has been with the bank for a year and Sandahl, 48 years old, were held re
He started with the bank at Dunnell in one-half as manager of the personal cently at Stillwater, Minnesota.
Miss Sandahl died in her home in
1910, and a year later located in Sher loan department. Prior to the war,
Stillwater
following a short illness.
he
had
banking
experience
with
the
burn.

36th A n n iv e rsa ry

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

Northwestern Banker, O c to b e r, 1947

Minnesota News

Born February 15, 1889, at Stillwater,
she had lived there the greater portion
of her life. For the past 20 years she
was employed as a teller in the Empire
National Bank in St. Paul.

N ew A ssista n t C ash ier
Ralph Sather, assistant cashier of the
First State Bank of Litchfield, Minne
sota, tendered his resignation, effective
last month. At a board of directors’
meeting Donald G. Nordlie was named
as assistant cashier.
The banking rooms are now in the
process of being remodeled and redec
orated.

Region M eeting
The Dairy Region Clearing Associa
tion which is comprised of banks in
Waseca, Steele and Freeborn counties
met at Waseca, Minnesota, for the an
nual meeting.
Officers elected were: A. M. Ellingson of the Farmers State Bank at Hope,
president; R. W. Delaney of the First
National Bank of Albert Lea, vice pres
ident; C. Arveson, Otisco State Bank
at Otisco, secretary and treasurer.
The group heard K. 0. Satire of the
Blue Earth State Bank as one speaker
and the president of the Minnesota
Bankers Association, John Carl of Fari

bault, and Secretary Robert Pye of
Minneapolis.

35 Y ears
President Helmuth R. Kurth and
Vice President Joseph J. Drahos re
cently completed 35 years of service to
the Citizens Bank and to the Hutchin
son, Minnesota, community.
It was in August, 1912, that Helmuth
Kurth, fresh out of Hutchinson High
School, accepted a position with the
Citizens Bank. Several years later he
was promoted to assistant cashier.
In 1917 he left the bank to serve
his country in World War I. On his
return two years later, he resumed his
former position in the bank and in
1922 was elected cashier. Four years
later he was made vice president.
On the death of W. E. Harrington,
the founder of the bank, in 1930, he
was elected president.

County Chairman

EXTENDING YOUR
CUSTO M ER LOAN SERVICE
II K \ you are considering commercial

D. J. Fouquette, president, St. Cloud
State Bank, St. Cloud, Minnesota, has
been appointed chairman of the U. S.
Savings Bond division of the Treas
ury Department for Benton county, it
was announced by Von E. Luscher,
state chairman.
In accepting the appointment as
c o u n t y chairman, Mr. Fouquette
pointed out that E Bond sales in Ben
ton county for the first seven months
of this year amounted to $162,562.
This compares with $118,557 for the
same period in 1946. Sales of Series
F and G savings' bonds this year were
$66,926, as against $62,770 last year.
Redemptions of savings bonds, Series
A through E, were $113,185. Last year
they were $134,936.

loans in amounts that exceed your
limits we would appreciate an opportunity
to discuss the possibility of participating in
them with you.

THE N O R TH ERN
TRU ST C O M P A N Y
50 S O U T H LA S A L L E S T R E E T

CHICAGO
M em ber Federal Deposit Insurance Corporation

Northwestern Banker, O cto be r, 1947

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

President Resigns
A. E. DeSutter, president of the
Farmers and Merchants State Bank,
Minneota, Minnesota, announces that
due to health considerations, he has
advised the board of directors of his
desire to withdraw from active par
ticipation in the bank’s affairs at the
end of this year.
Mr. DeSutter was elected president
of the institution in January, succeed
ing H. J. Tillemans. He has been as
sociated with the bank since 1927.
In view of Mr. DeSutter’s request,
several changes in the bank’s official
staff were voted at a recent meeting
of the board of directors.
Harry N. Dirks of Vermillion, South
Dakota, was elected executive vice
president of the bank.
H.
W. Tillemans, who has served as
cashier of the bank since 1942, was
promoted to vice president and E. M.
Amundson, assistant cashier since
1936, was advanced to cashier.

IGHT applications were approved
by the Minnesota Commerce Com
E
mission during the last two weeks of
August. Approval was given to:
Alden Wonderall Company, to regis
ter 35,000 shares of common stock, at
par, $1 per share.
General Controls Company, to regis
ter $30,000 common stock at market
not to exceed $30 per share; behalf
Riter & Company.
Universal Zonolite Insulation Com
pany, to register $25,000 aggregate
amount common stock, par value $1,
at proposed sales price of not to ex
ceed $3.50 per share.
Tennessee Gas Transmission Com
pany, to register $40,000,000 first mort
gage Pipe Line Bonds, due 1967, at not
to exceed 105 per cent; and 100,000
shares cumulative preferred stock, par
$100, at not to exceed 108 per cent;
behalf Blyth & Company.
Union Loan & Thrift Corporation,
to register $500,000 investment certifi
cates (used for loans) and $100,000
thrift investment certificates.
Affiliated Fund, Inc., to register
$750,000 aggregate market value shares
common stock, $1.25 par, at day-to-day
net asset value plus 8.5 per cent.
Mastersonic, Inc., Minneapolis com
pany manufacturing an electric organ,
to register 1,500 shares of common
stock at $1 per share and 750 shares
of preferred at $100 per share, to be
sold in units of 1 share preferred and
2 shares common at $102 per unit.
Whitehall Fund, Inc., to register
$250,000 capital stock, $1 par value, at
day-to-day net asset value plus 7 per
cent of offering price.
A charter has been granted by the
Minnesota state banking commission
to a group of Eastside business men in
Minneapolis to operate the Thirteenth
Avenue State Bank, Raymond .1. Julkowski, president, has announced.
The bank will be located at Second
Street and Thirteenth Avenue NE and
will be opened around November 1st.
Capital will be $100,000.

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Federal Reserve Bank of St. Louis

Other officers besides Mr. Julkowski
are: Walter A. Kostick, vice president;
Ray Mikolajczyk, vice president and
cashier, and Walter S. Larson and Dr.
Walter S. Warpeha, directors with the
officers.
William Kunze, vice president, Mar
quette National, Minneapolis, took his
first vacation in 40 years this summer.
Mr. Kunze and his family visited the
upper peninsula of Michigan, northern
Wisconsin, and the north shore of
Minnesota.
John de Laittre, vice president,
Farmers & Mechanics Savings Bank,
Minneapolis, has been spending sev
eral weeks at Beaver Bay recuperat
ing from a recent illness.
Mr. de Laittre, who is chairman of
the newly organized public relations
committee of the Minnesota Bankers
Association, was taken ill shortly
before the committee was to hold its
first meeting in August.

Mineapolis chapter of A.l.B. held its
golf stag recently at Meadowbrook
golf course in Minneapolis followed by
dinner at Jenning’s Tavern on Excel
sior Boulevard.
Appointment of Emmet J. Erickson,
Farmers & Mechanics Savings Bank,
Minneapolis and James G. Goblisch,
First Grand Avenue State Bank, St.
Paul, as associate councilman of the
A.l.B. has been announced by Garnett
A. Carter, Atlanta, Georgia, new na
tional president.
Arvid Bunaes of the Christinia Bank
of Kreditkasse in Oslo, Norway, is
spending a year at the Northwestern
National Bank in Minneapolis study
ing American methods of banking.
Oscar A. Schultz, former assistant
vice president, Marquette National
Bank, Minneapolis, has been made
executive vice president and manager
of the Bank of Commerce & Savings,
Duluth, Minnesota.

Modernistic remodeling of both the
interior and exterior has recently
been completed at the Minnesota State
Bank, St. Paul. New safe deposit
boxes, safes and office machines as
well as a new marble counter have
also been installed.
Leslie N. Perrin, executive vice
president and director of General
Mills, Inc., has been named a director
of the First National Bank of Minne
apolis. Announcement of the appoint
ment was made by Henry E. Atwood,
president of the bank.
Mr. Perrin will fill the vacancy on
the board created by the death of
Franklin M. Crosby, General Mills
executive who had served 41 years as
a director of the bank.

Investors Syndicate played host to a
regional group for the third time in a
month recently when nearly 250 di
visional managers, representatives and
their families from the Syndicate’s
“ Rebel Region” met at the Nicollet
Hotel in Minneapolis.
The southerners heard talks from
President E. E. Crabb and Vice Presi
dent and Sales Manager Grady Clark.
At the three regional meetings In
vestors Syndicate officials met with
more than 700 members of the sales
force.
R. L. Stotesbery, president, Mar
quette National Bank and president,
Minneapolis Clearing House Associa
tion, has appointed a committee of four
to entertain Group One, Wisconsin
Bankers Association, which has been
invited by the Minneapolis Clearing
House group to hold its Washington’s
birthday convention in Minneapolis.
Committee members are:
K. T. Martin, assistant vice presi
dent, First National Bank, chairman.
C. C. Rieger, vice president, Mar
quette National Bank.
E. W. Engstrom, assistant cashier,
Midland National Bank.
Carl F. Wieseke, assistant cashier,
Northwestern National Bank.
Northwest ern Banker, O c to b e r, 1947

M innesota

News

John F. Scott, president of the Min
nesota Federal Savings and Loan
Association, St. Paul, who was taken
suddenly ill last month, is reported by
his physicians to be somewhat im
proved.
Paul W. Loudon, partner in the
Minneapolis stock and bond brokerage
house of Piper, Jaffray & Hopwood, is
recovering from illness that had con
fined him to a hospital.

Permission has been given by the
Minnesota Commerce Commission, to
the Assurance Company of America,

New York, to do business in Minne
sota.
Jerome Schreiner, 56, examiner for
Northwestern Fire & Marine Insur
ance Co., Minneapolis, drowned in the
St. Croix River at Taylor’s Falls, Min
nesota, recently, while trying to res
cue his son. Mr. Schreiner had been
with the company for 26 years. He is
survived by his widow, a daughter and
son.
Robert Arthur Erickson of the Chicago-Lake State Bank, Minneapolis,
was married recently to Miss Joan
Pohlad of the staff of the University

National Bank. The groom is the son
of Arthur Erickson, director of the
University National and manager of
its insurance department.
The wedding reception was held at
the home of R. L. Stotesbery, presi
dent of the Marquette National and
University National Banks. The bride
is a sister of Mrs. Stotesbery.
Don Buckman, First of St. Paul, was
married to Agnetta Bergsgaard of
Portland, Oregon. The couple met
while both were working at the First
National Bank, Valley City, North
Dakota.
After a honeymoon on the North
Shore they will be at home in St.
Paul.—The End.

M oorhead Meeting
With 26 bankers from 10 of the II
member banks attending, Clay-Wilkin
Bankers Association elected officers at
their annual meeting in Moorhead,
Minnesota.
New officers are George Felde, First
National Bank, Barnesville, president;
Carroll Fridlund, First National Bank,
Moorhead, vice president; A. J. Ander
sen, Jr., Northwestern State Bank,
Ulen, treasurer, and Victor Paulson,
Farmers and Merchants State Bank,
Breckenridge, secretary. Retiring pres
ident is C. R. Euren, Moorhead.

D eposits Increase

Sickness, Accident and Hospital Insurance
at Cost for Bankers

O V ER 42 Y E A R S

SU CCESSFU L

SER V IC E

W e have No A g e n ts— Simply write for
Application and Literature to

M IN N E S O T A
M

E N ’S

C O M

E R C I A L

A S S O C I A T IO N

PAUL CLEMENT, Secretary

2550 Pillsbury Avenue, Minneapolis 4, Minnesota

Banker, O cto be r, 1947
Digitized forNorthwestern
FRASER
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Federal Reserve Bank of St. Louis

Deposits of country banks of the
Ninth Federal Reserve District in
creased $41,000,000 in July as compared
with a $3,000,000 decline for city mem
ber banks.
The jump in deposits of Federal
Reserve Banks followed a seasonal de
cline of $144,000,000 during the first six
months of the year.
In its monthly review of business
conditions the Federal Reserve Bank
of Minneapolis attributes the higher
country deposits to “initial influences’"
of a good crop year in the territory it
serves.
The lower city bank deposits, the
report stated, are accounted for by
“nominal declines in balances due
other banks and in deposits of states
and other political subdivisions.”
A sharply rising trend in bank loans,
is noted in the report.

V isit Farm s
For the first time in the history of
the Minneapolis Federal Reserve Bank,
a group of its directors and officials
paid a visit to Minnesota farmers.
Part of a new plan inaugurated by
John Peyton, president, the bankers
made a tour of three southeastern Min
nesota farms recently to permit them
to keep abreast of agricultural devel-

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Federal Reserve Bank of St. Louis

p r o fit a b le h a n d lin g
T w in City b u s i n e s s

The F IR S T N A TIO N A L B A N K
of Saint Paul
K ic h a r d C . L illy , C h a ir m a n , R o a n i o f D ir e c t o r s
1‘ h i li p L. H a y , C h a ir m a n , E x e c u t i v e C o m m i t t e e
J u lia n II. B a ir d , P r e s id e n t
D EPARTM EN T o f BANKS and BANKERS
W a lla c e L . B o s s . V ic e P r e s id e n t

L lo y d L. L e id e r , A s s is ta ti t C a s h ie r

E lm e r M . V o l k e n a n t , A s s i s ta n t V ic e P r e s id e n t
L e e A . S a u e r , A s s i s t a n t C a s h ie r

D o n a i«! Vi . B u c k m a n , R e p r e s e n t a t i v e
D o n a ld L . S m i t h , R e p r e s e n t a t i v e

■
Northwestern Banker, O c to b e r,

1947

M innesota

News

opments in this rich farming area.
They saw how application of im
proved methods under guidance of the
Southeastern Minnesota Farm Manage
ment Association and the University
of Minnesota agricultural extension di
vision helped build outstanding farms.
Directors and officials making the
trip were Clarence E. Hill, chairman
of the board of Northwestern National
Bank; Paul E. Miller, director of agri
cultural extension division, University
farm; Roger B. Shepard, chairman of
the board; Harry I. Ziemer, vice presi
dent and secretary.
Others were Sigurd Ueland, vice

president and counsel; H. G. McCon
nell, vice president; William E. Peter
son, assistant cashier; O. W. Ohnstad,
auditor; F. L. Parsons, agricultural
economist; M. E. Lysen, operating re
search officer; Oscar F. Litterer, indus
trial economist; A. M. Schoenhoff, ad
ministrative assistant; C. E. Tillander,
Zeldon Pelland and Clem Van Nice,
bank relations department.

Buys Goodhue Bank
John E. Blomquist, St. Paul realtor,
head of several corporations engaged
in the real estate, insurance and fi
nancing business, recently purchased

50 YEARS
of Experience and Service
When the Stock Yards National Bank opened for business in
1897 (fifty years ago) cattle were selling for about $5.00 per hun
dred and hogs for about $4.00 per hundred. This year both cattle
and hogs have sold for over $30.00 per hundred.
Fluctuations in livestock prices have presented many financing
problems to banks located in feeder territory, and the Stock Yards
National Bank has always co-operated with its correspondents
in taking care of their customers' needs. We invite you to submit
your overlines to us.
Our complete banking facilities assure prompt and efficient
handling of all South St. Paul transactions.

The S t o c k Y a r d s N a t io n a l B a n k
South Saint Paul, Minn.
M E M B E R F E D E R A L D E P O S IT IN SU R A N C E C O R P O R A T IO N

Northwestern Banker, O c to b e r, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

the Goodhue State Bank, Goodhue,
Minnesota, from W. R. Sawyer, presi
dent, and associates.
This rounds out to five the banks in
Minnesota and northwestern Wiscon
sin Mr. Blomquist now owns. It is the
largest of the group with footings as
of June 30th of $1,350,867. Deposits
August 13th were $1,390,000. Loans
and discounts June 30th were $160,085.
Mr. Sawyer, - says Mr. Blomquist,
will remain as president and in charge
of operation of the bank for six months
at which time Mr. Blomquist will be
come president.
A Northwestern National Bank,
Minneapolis, official who raises dah
lias as a hobby was in his height of
glory recently as his home bank
played host to the Minnesota Dahlia
Society’s Nineteenth annual show.
Carroll H. Rose, assistant cashier
of the Northwestern National Bank,
serving at present in the Lake Street
branch, is also secretary-treasurer of
the Minnesota Dahlia Society. Rose
has been raising dahlias as a hobby
since the day 14 years ago when he
let his landlady’s favorite dahlia roots
freeze in the ground. She was so dis
appointed to find that he neglected to
dig them that he promised to plant
some others for her—he did, and has
been raising prize winning dahlias
ever since.
Although the hot dry weather ham
pered both the size and quality of the
blooms this year, Rose walked off with
several ribbons including a first place
in the Cactus Court of Honor with his
“Ella May,” a large violet bloom.
Several thousand Minnesotans vis
ited the dahlia exhibit during the two
day showing in the bank lobby.

Dividend
The board of directors of the Guar
anty Trust Company of New York,
have declared a quarterly dividend of
$3 per share on the capital stock of the
company for the quarter ending Sep
tember 30, 1947, payable on October 1,
1947, to stockholders of record at the
close of business September 10, 1947.

A sso c ia te s O fficer
Walter L. Rehfeld, vice president of
the Mercantile-Commerce Bank and
Trust Company, St. Louis, Missouri,
has been elected first vice president
of the Robert Morris Associates, a na
tional organization of bank loan offi
cials.
Speaking for Myself
P ort: “ I am thinking of getting mar
ried. What do you think of the idea?”
F lo : “ I think it is all right, if you
ask me.”

E x ten d E n m ity W elfa re i*royra tn
HE Institute of Life Insurance is
extending for another year its
long-range family welfare pro
gram, predicated on the thesis that
what becomes of the nation depends
on what happens to its homes, with
the services of life insurance agents
to American families featured as an
integral part of the new campaign,
Holgar J. Johnson, Institute president,
announced.
First advertisement of the 1947-48
program appeared the week of Sep
tember 8th, with 1,000-line ads sched
uled to run in alternate weeks until
the first week of June, 1948.
These advertisements will be carried
in 378 daily newspapers in 232 cities
throughout the country. They will
appear in cities of 50,000 and over and
in those cities of 35,000 and over where
there is a local life underwriters asso
ciation.
The farm audience will be specifi
cally reached by the use of five farm
magazines with a combined circula
tion of 6,800,000.
Total circulation of the newspapers
and farm papers to be used is about
42,000,000.
The new campaign continues the
public service aspects which have
evoked wide interest and enthusiastic
comment by leaders in many fields.
Editors, business men, leaders in
women’s activities, social service
workers, educators, preachers, public
officials and persons in all walks of
life have volunteered hearty endorse
ment of the spirit and the specific mes
sages of the “ Family Happiness” cam
paign during the past year. Those
consulted in planning the new cam
paign have been even more enthusi
astic concerning it.
Each advertisement in the series,
signed by the “Life Insurance Com
panies and Their Agents,” will carry a
special message on the theme “ How
to Plan for Family Happiness,” with
the agent presented as the best one to
turn to for advice and aid in this
planning. “ The person best equipped
to help you with this is the welltrained life insurance agent. Get in
touch with your agent, or write your
life insurance company,” is the con
cluding statement in each advertise
ment.
Several advertisements will be de
voted entirely to the agent’s service in
family financial planning.

“This series of ads is a logical ad
vancement of the program which the
business has been conducting for the
past several years,” Mr. Johnson said.

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Federal Reserve Bank of St. Louis

“For three years we carried on a co
operative advertising program against
inflation which contributed materially
to sound family thinking in meeting

E ffr e tir e

inflationary trends. Then, last year,
the business undertook a program
more directly pointed to family prob
lems, following the general theme,

e a -a r d in a t in n

of all departments assures rapid, efficient han
dling of every type of banking transaction. You
are invited to use any or all of our facilities.

C i t y N a t i o n a l Ha n k
AN D TRU ST C O M P A X Y o fC A ie ^ o
2 08

SOUTH

LA S A L L E

STREET

( 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 .)

W HO DUNIT?
W h o signed that check? Is it the
signature o f our old friend George
Gianakapopolous? Has Mr. Phfftch
himself opened his account at our
bank? Maybe it’s one o f the ten little
Gustafsons, who, with all his brothers
and sisters, has returned home from
his war job. Or, worse still, maybe it’s
John P. Scrawler, that guy who likes
to keep people guessing.
Certainly not a case for Hercule
Poirot, but sufficiently annoying to
slow things down in the bookkeeping
department and, when multiplied by
the many thousands o f times it occurs,
important enough to devote some
time to its solution. Fortunately the
solution is simple. Get the man to use
imprinted checks; then you’ll know
who he is.
It requires some extra labor to handle
a lot o f imprinted check orders in a
bank but the net saving is worth a
lot. The extra labor is expended at a

point where time can normally be
consumed; it is saved in the depart
ment where time is vital. There is a
dollar saving too, because when you
sell Personalized Checks you save the
cost o f pass books, covers and stock
checks. In a bank with as many as ten
thousand accounts, one person could
handle all the check orders and the
chances are that he could save his sal
ary by selling checks instead o f giving
them away.
W h y not set up a "check department”
in your bank? Pick out someone with
a nice smile and put him in charge
o f it. Or get a pleasant young lady
who likes to meet the public. You
may be surprised how such an experi
ment would pay out. Faster sorting,
money saved, customers pleased . . .
these and many more advantages can
be gained with a check department
in charge o f the right person. It’s an
idea. Let’s talk about it.

Manufacturing Plants at\
NEW YORK, CLEVELAND, CHICAGO, KANSAS CITY, ST. PAUL

Northwestern Banker, O c to b e r, 1947

M innesota

News

'Family Happiness Has to be Planned.’
This campaign emphasized the need
for family money management and
highlighted the results of sound plan
ning towards family happiness.
“ The new program goes one step
further, presenting a series of mes
sages concerning the means and
methods for accomplishing this family
financial planning. Key authorities
of the nation in various fields of family
and home management will be quoted
concerning details in planning. Each
advertisement will include a simple
over-all plan for taking care of the
main family disbursements today and
planning for tomorrow.

CARL

CONVENTION TIME

L. F R E D R IC K S E N
President

M A R K A. W I L S O N
V ice President
W I L L I A M G. N E L S O N
V ice President
W I L L I A M C. S C H E N K
Asst. V . Pres, and Cashier
C L IF F O R D L. A D A M S
Asst. V ic e President
JO H N S. H A V E R
Asst. Cashier
J A M E S L. S M IT H
A sst. Cashier and A uditor
K I N L E Y W . S M IT H
Asst. Cashier
W I L L I A M L. T E M P L E
R epresentative

“There was never a time when care
ful family planning was more neces
sary than today. In this turbulent
world the stability of our national
economy is definitely related to the
family units which make up the na
tion. If we keep them sound, we keep
the nation sound. Thus, it is more
than a family service, it is a national
service to exert every possible effort
to maintain family and hence national
stability in the days ahead.
“What this country amounts to de
pends on what happens to its homes.
That is why the life insurance com
panies and their agents are under
taking this program in behalf of

The Live Stock National Bank of
Sioux City extends warmest greetings
to the 1947 convention of the Iowa
Bankers Association in Des Moines.
We have always actively supported
state association affairs dating way
back to our first birthday in the gay 90's.
Also, cooperation with fellow mem
bers of the Iowa Association has al
ways been a "must" in this bank. This
kind of cooperation is one reason that
so many banks use this institution for
their correspondent items in Sioux City.

T H E

'y Æ

ïé

t s t À

M em ber

Federal

Northwestern Banker, O cto be r, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

D e p o sit

In su ra n ce

C o r p o r a tio n

sounder family money management.”
Life insurance agents throughout
the country will have available
through their companies reprints of
each of the advertisements in the
series. These reprints have been used
in the past, up to a million or more in
the case of some of the advertisements,
to carry the messages to many who
missed them when published and to
reiterate the message with others.

Propose N ew Program
A proposal for adoption of a new
“over-all parity income” program to
supplant the present parity price form
ula covering farm products was an
nounced by the Committee on Redefi
nition of Parity at the annual meet
ing of The American Farm Economic
Association. “The p r o g r a m is de
signed,” said H. R. Wellman, commit
tee chairman and Director of the Giannini Foundation of Agricultural Eco
nomics, University of California, “to
aid farmers during periods of depres
sion, rewarding them for maintaining
full production, and also to help speed
general business recovery.”
The committee’s proposal is that
parity be applied to income rather
than prices. Parity, as applied to in
come, according to their definition,
would establish a per capita income
for farmers which would bear the same
relationship to per capita non-agricultural income as that which existed in
the most recent normal peacetime pe
riod of high level production and em
ployment. This would leave the prices
of individual agricultural products to
be determined by the free play of mar
ket forces.
The committee recommended that
when payments are made they be dis
tributed to individual farmers on the
basis of total cash receipts for farm
marketings. For e x a m p l e , if the
amount to be distributed in any year,
on the basis of the new parity income
formula, equalled 10 per cent of the
total cash receipts from marketings,
each individual farmer would receive
a w vment equal to 10 per cent of his
individual sales after certain deduc
tions.
The committee also proposed that
payments be confined to farmers who
have made adequate progress in put
ting into effect and carrying out pro
grams of good land use and conserva
tion.
The committee was critical of the
Government’s present parity price pro
gram of artificial Government support
of the price of individual agricultural
products as being contrary not only to
the long-run interest of the farmer,
but to the welfare of the nation as a
whole.

71
Harry Dirks who resigned to accept

S o u t li

D a k o ta

NEW S .

If,

■HH
A. E. DAHL

President
Rapid City

To Verm illion
Ole H. Bondhus of Sioux Falls has
been named assistant manager of the
National Bank of South Dakota at Ver
million, replacing Harry Dirks, who
resigned to accept a position in Minne
sota. The appointment was announced
by John T. Sanger, vice president of
the National Bank of South Dakota
and manager of the Vermillion bank.
Mr. Dirks left for Minneota, Minne
sota, where he will serve as executive
vice president of the Farmers & Mer
chants State Bank, which is affiliated
with the First Bank Stock Corporation.
Mr. Bondhus comes to Vermillion
from Sioux Falls, where he was cashier
in the National Bank of South Dakota
for eight years, four of which were
spent in the Navy. Prior to that he
was connected with the Pipestone Na
tional Bank at Pipestone, Minnesota,
and the First National Bank at Heron
Lake, Minnesota.

C arl O den
Funeral services for Carl Oden were
held at Alcester, South Dakota, recent
ly.
Honorary pallbearers were officials
of the State Bank of Alcester.
In 1907 Mr. Oden moved to Nora
where he operated the Nora store for
forty years. During these years at
Nora Mr. Oden was a school board
member for about 26 years, he served
several terms as a township officer,
was a member of the Nora Creamery
board and a director of the State Bank
at Alcester.

N e w ly w e d s
Betty Curnow became the bride of
Donald Williams of Lead recently.
The couple will live in Lead, South
Dakota, where both hold positions in
the Miners and Merchants Bank. He
is assistant cashier.

D eposits High
South Dakota’s 135 state banks have
reported a total of $231,343,971 in de
posits as of June 30th, the highest in
the state’s 58 year history, the State
Department of Banking and Finance
reported.
The bulk of record-breaking deposits

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

GEORGE M. STARRING
Secretary
Huron H KH HM p ...fe

was furnished by individual checking
accounts and time deposits, which to
taled $203,902,317, the report said, a
gain of $8,031,092 over individual depos
its six months ago and an increase of
thirty-eight and a half million dollars
over the amount reported a year ago.
The report also showed that deposits
this year were 312 per cent greater
than 1942 totals, and nearly 600 per
cent larger than deposits for the same
period in 1937.
In contrast to the spiraling deposits
the banks reported $35,230,447 in loans
and discounts, an increase of $3,239,747 over the report for December 31.
1946, and $8,741,089 over loans on
June 30, 1946.

Bank Debits
The volume of bank debits in Aber
deen, South Dakota, during the month
of July, 1947, was 34 per cent above
the level attained in July, 1946, while
tabulations for the first seven months
of this year indicated a 31 per cent
increase over last year, the Federal
Reserve Bank of Minneapolis reported.
In the state as a whole the July
volume of debits increased 23 per cent
over last July. January through July
totals show a gain of 30 per cent over
the corresponding period in 1946.

S io u x

F a lls N e w s

reported that cashing
of terminal leave bonds by vet
L
erans had slowed down to a steady
OCAL banks

pace of only a few a day after the
initial rush September 2 when a few
more than 600 were cashed.
Dr. S. A. Donahoe, a director of the

National Bank of South Dakota, had
grand champion entry in the Scotch
Shorthorn bull class at the state fair
at Huron. His animal, Don Hill Royal
Leader, will be entered in the inter
national livestock exposition in Chi
cago in December.
Ole H. Bondhus, former cashier in

the National Bank of South Dakota
here, has assumed his new position
as assistant manager of that institu
tion’s Vermillion branch. He replaces

a position as executive vice president
of the Farmers & Merchants State
Bank at Minneota, Minnesota. Bond
hus was once engaged in banking at
Pipestone and Heron Lake, Minnesota.
He is a navy veteran of World War II.
Ralph M. Watson, president of the
Northwest Security National Bank, is
general chairman of the 1947 Commu
nity Chest campaign which has as its
goal $58,440.

Employes of the Northwest Security
National Bank and their families, 165
in number, from Sioux Falls, Dell
Rapids, Madison and Brookings, at
tended the organization’s annual pic
nic at the Izaak Walton League club
house.
Tony Westra, livestock and agri
cultural representative for that bank,
assisted in judging 4-H calf exhibits at
the state fair. He purchased eight en
tries for the bank.
James Gusebroeck, for about 10
years auditor with the Northwest
Security National Bank, has become
an assistant manager at the Huron
branch.
Louis Myers, for many years asso
ciated with the Huron branch of the
Northwest Security National Bank,
and for the last two years manager of
the B. F. Goodrich store in Huron, has
reentered the bank’s employ as assist
ant manager.
Dale Scheinost has relinquished his
position as assistant manager of the
Gregory branch of the Northwest Se
curity National Bank to engage in the
real estate business in Los Angeles.
C. A. Christopherson, chairman of
the board of directors of the Union
Savings Bank, accepted an invitation
to address the Thomas Paine society,
local discussion group, during United
Nations Week.

Dividend
The board of directors of Manufac
turers Trust Company, New York, has
declared the regular quarterly divi
dend on the bank’s capital stock in
the amount of sixty cents per share,
payable on October 1, 1947 to stock
holders of record on September 9th.

For Florida S ales
American Express Field Warehous
ing Corporation has appointed Fidel
ity Storage and Warehouse Co., of
Orlando, Florida, as sales representa
tive for Florida, according to Ralph T.
Reed, president of the corporation.
Northwestern Banker, O c to b e r, 1947

South

Dakota

News

E n jo y in y E eo n o m ie P r o s p e r ity
O ONE knows how long it will
last, but it is evident that this
country is still enjoying a hellfor-leather period of economic pros
perity. For more than a year, leading
economists have been forecasting re
cessions and depressions, none of
which have materialized. Last June,
according to Department of Commerce
figures, personal incomes in the United
States hit the record annual rate of
$193,000,000,000. In that same month
the number of productively employed
people passed the 60,000,000 mark for

the first time, and the July figure was governmental fiscal policy, foreign
still higher.
buying in a tight market, ever-expand
It is true, of course, that the pur ing business overhead, etc. To choose
chasing power of the dollar is much the most obvious reason, higher prices
lower than in previous times. Even are inevitable when 60,000,000 people,
so, wage increases have, for the most earning the highest pay in history, are
part, kept pace with price increases, panting for goods and services of all
and in some industries have materially kinds. There are still many people to
exceeded them. The major exceptions whom price is of little consequence—
to the rule have been the white-collar as the so-called “used automobile” mar
and professional classes, whose earn ket abundantly proves. Throughout
ings, measured by the yardstick of the country, 1947 automobiles bring
purchasing power, are less than dur bonuses of from $400 to $1,500 on the
ing and before the war. People living used-car lots—and dealers report that
on fixed incomes have taken a tre there is no dearth of purchasers.
The loosening of the regulations on
mendous financial beating. It is the
laboring groups which have benefited time-payment purchases has been a
factor in keeping sales of expensive
most.
Herbert Hoover recently said that articles at the peak level. When fam
he could not forsee any important drop ilies run out of cash, they can keep on
in business in the near future. That buying on liberal installment terms.
point of view is widely shared at the In some fields, such as radios, evidence
present time, even by some of the of over-production is apparent, espe
commentators who anticipated eco cially of unknown brands. But staple,
nomic upheavals this summer. This advertised goods of all kinds are sell
ing well.
optimism as to the immediate outlook
Manned by officials with years
Very few people believe that this is
is producing increased pessimism as to
of experience, our Correspon
a
healthy economy. Economists for
the long-term outlook, on the theory
dent Bank Division renders a
that the longer the boom lasts the industry shake their heads when they
complete service, conducted in
more severe will be the break when it start talking about the long-time fu
an intimate and personalized
comes. It is a situation where the old ture. So do economists for the labor
prize-ring dictum that “the bigger they unions. All of them are concerned
manner.
are the harder they fall” applies. But with what might happen if we had a
The guiding policy is one of
this is in the realm of speculation. depression accompanied by high
cooperation in. all matters of
The business indices are still going up, prices. It has never happened in this
country. It has happened in many
mutual interest.
and the goal of “full employment”
seems to have been reached. In many other countries. And it is definitely
an unpleasant prospect.—The End.
<777*?,
important lines, output would be a
great deal larger than at present if
Conclude Check-up
more supplies were available.
'U D I U
Under leadership of O. J. Arnold,
Every consumer knows what all
B A N K .
A N D
T R U S T
this has done to prices. Here, again, president of Northwestern National
C O M P AN Y OF N E W Y O R K
those who forecast last fall that sub Life Insurance Company, Minneapolis,
E S T A B L I S H E D 1908
stantial price breaks would come by has concluded a 16-week community
mid-1947 were badly fooled. The Bu wide free chest X-ray survey with 306,Member: New York Clearing House
reau of Labor Statistics price index 020 persons, 74 per cent of the adult
Association, Federal Deposit Insurance
recently touched another new high, population, having had free chest
Corporation!
and it is expected to go higher still. X-rays. Counting X-rays taken by doc
That is the result of many factors— tors, hospitals, and other agencies, 95
per cent of the adult population are
estimated to have had a chest X-ray
checkup within the past year, which
public health authorities say sets a
Reporting S e rv ice To M eet Your N eeds . . .
landmark in public health history.
Standard Consumer R eports— A utom obile Purchase R eports— Farm er R eports—
Final results will not be known for
Business R eports— Employee R eports— Dealer Car Check Reports
. . . AND
some time, but findings to date show
P roperty Reports— M odernization Loan Reports— G. I. Loan Reports— covering re
5,972 men and women with X-ray evi
quirements fo r all types o f loans approved by Federal H ousing A dm inistration, Veterans
A dm inistration, Banks and Finance Companies.
dence of tuberculosis, and 4,418 with
other
chest impairments including en
CONTACT YOUR LOCAL CREDIT BUREAU FOR
larged heart, chest cancer, and many
THIS SERVICE
others. It is expected that one in 11
of the tuberculosis cases will be found
C R ED IT BU REAU R E P O R T S , INC.
to have the active, infectious form of
(F orm erly N ational Consumer Credit R eportin g C orporation)
the disease and will need hospitaliza
G E N E R A L OFFICE— 381 FOU RTH A V E .. N EW Y O R K 16, N. Y.
tion or other medical care. The rest
Owned and Operated by Ten Hundred F ifty-one R eportin g Bureaus Throughout
of the 5,972 will have arrested or healed
the United States
tuberculosis.

Experience
Service
Cooperation

Northwestern Banker, O c to b e r, 1947

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Federal Reserve Bank of St. Louis

,\orl li D akota

N EW S
F. A. FOLEY
President
Rolla

Bank Sold
Sale of the Stock Growers Bank of
Mapleton, North Dakota, by the North
west Bancorporation was announced
last month.
The purchasers are G. A. Klefstad
of Forman and Ben Meier of Napoleon
and Gackle. Mr. Klefstad is president
of the Sargent County Bank at Forman
and also is interested in the Bank of
Hazelton in Emmons county.
Mr. Meier will be in active charge
of the bank.
F. B. Heath of Bismarck is retiring
president of the institution, serving
since 1910. The bank was organized
in 1900.
Harry C. Fields is vice president.
Mr. Klefstad is state representative
from Sargent county and has been
identified with North Dakota banking
since 1930.

C. C. WATTAM
Secretary
Fargo

million to 380 million, while Moor
head’s debits increased from 32 million
to 44 million.
These figures are from the Minne
apolis Federal Reserve Bank. Debits
represent checks cleared through re
serve banks.
All North Dakota debits increased
from 138 millions to 155 millions for
July, and from 868 millions to 1,059
millions in the first six months.

Birthday
R. S. Lewis, pioneer Fargo banker,
civic leader and one time lieutenant
governor of North Dakota, marked his
91st birthday recently. In honor of the
occasion Mrs. Lewis entertained at
dinner in the Fargo Country Club,
following a cocktail party at which
Mr. Lewis’ grandson. Robert C. Lewis,
Jr., and his wife were hosts in their
home.

pal speeches. There will also be
“ shop” talks, forums, reports and
entertainment.
Earle F. Farnsworth, vice president,
San Diego Trust and Savings Bank,
will be general chairman, and Robert
J. Sevitz, vice president, SecurityFirst National Bank, vice chairman.
Committee chairmen are: Entertain
ment—George Schmidt,
president,
First National Trust and Savings
Bank of San Diego; finance—Joseph
C. Lipman, vice president, Union Bank
and Trust Co., Los Angeles; golf—
Anderson Borthwick, vice president,
First National Trust and Savings
Bank of San Diego; publicity—David
N. Millan, vice president, San Diego
Trust and Savings Bank; reception—
H. A. Dutcher, assistant vice presi
dent, Bank of America; registration—
Gordon E. McNary, assistant vice
president, San Diego Trust and Sav
ings Bank; transportation—Walter B.
Whitcomb, vice president, First Na
tional Trust and Savings Bank of San
Diego.

Independent M erchandising

The National Association of Retail
Grocers has made a survey of the re
cent operating experience of independ
ent grocery s t o r e s throughout the
country, in towns ranking from little
villages up to and including New York
City.
C. P. Kjelstrup
It found that an overwhelming ma
V
isits
Fargo
C.
P. Kjelstrup, 62, executive vice
Lynn U. Stambaugh, Fargoan who jority of the independents enjoyed bet
president of the American State Bank
in Minot, North Dakota, died recently went to Washington as one of the ter business during the first half of
1947 than in the same period of 1946.
directors of the Export-Import Bank,
of coronary thrombosis.
With the American State Bank since has had two of the busiest years of Asked as to their opinion of future
1936 he had been supervisor of the his life as one of the men at the helm prospects, 87 per cent of the operators
National Farm Loan Associations for of the institution which now has more felt that business would be good, and
the Federal Land Bank, St. Paul, be than two and one-half billion dollars only seven per cent feared a serious
fore coming to Minot and previously in loans parceled out around the world. decline.
Mr. Stambaugh, who with Mrs. Stam
had lived many years at Parshall,
What makes this survey particularly
North Dakota. He was president of baugh had been in Fargo and the lakes interesting is that not so many years
the Farmers Exchange Bank at Par region for several weeks, had been ago the virtual demise of the inde
shall from 1916 to 1927 when the bank scheduled to speak to the Fargo Rotary pendent merchant was widely forecast
Club recently.
was sold.
—due to the competition of the chain
He was a past president of the north
systems. A number of states passed
west group of the North Dakota Bank Fall Conference
restrictive chain store tax laws of one
ers Association.
Approximately 300 bank commer kind or another, and a national meas
cial loan officers and executives are ure was aggressively pushed in Con
expected to attend the fall conference gress, but never passed. Many a pessi
To In crease Stock
of the Robert Morris Associates on mist was firmly convinced that inde
The Citizens State Bank, Petersburg,
North Dakota, has been authorized to
October 12 to 15 at picturesque Hotel pendent merchandising, in all basic
increase its common stock from $20,- del Coronado at Coronado, California. lines, was a fast-dying enterprise.
000 to $30,000, according to J. A. Gra Every state in the United States will
The experience of t h e following
ham, state examiner.
be represented, as well as Canada. years has shown how wrong the har
The Southern California chapter of bingers of disaster were. Independent
merchandising accepted chain compe
the Associates will be hosts.
Debits Up
T. W. Johnson, vice president of tition on its own grounds, and met it.
Fargo had bank debits of more than
the Security-First National Bank of Competition, instead of destroying one
56 million dollars in July this year, up
22 per cent over July last year. Moor Los Angeles, president of the South kind of retailing, simply forced all re
head’s debits exceeded 6 million dol ern California chapter and chairman tailing to better its service, to improve
of the program committee, announces its stock, and to watch its prices—to
lars, up about 1.2 million.
In the first six months of this year that outstanding men in industry, the enormous benefit of the consuming
debits in Fargo increased from 294 business and finance will give princi population.

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Northwestern Banker, October, 1947

SOUND BANKING SERVICE

Complete

Correspondent Facilities

U N ITE D STATES
jVatioual B A N K »/Omaha
J

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MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

* I* I* I* j* /* I* H * I* j * j * J * J * )* H * I* |* J * H * i * i* j * / * j * | * j * j* i* J * i» | * | * I* | * j * j *

For 91 Years

|*J * J* J* J* J* J* |* |*

>«“l» rs« sk a

XE W S
GLEN T. GIBSON
President
Gibbon

Now C ash ier
John H. Stohs, formerly associated
with the Citizens State Bank of Polk,
Nebraska, is now cashier of the Graf
ton State Bank.
Following the recent death of Thom
as N. Burke, former cashier of the
Grafton State Bank, it was announced
that Mr. Stohs had become a share
holder and was to be active in the
management of the bank. Present offi
cers are: Thomas Fitzgerald, presi
dent; John H. Stohs, cashier, and John
N. Keenan, vice president.

Bank Building Sold
In one of the largest real estate deals
involving a single property in Fre
mont, Nebraska, history, the Stephens
National Bank Building has been sold.
Buyer of the building is the Stephens
Building Corporation. While the pur
chase price was not disclosed, revenue
stamps on the deeds indicated the
property was sold for $100,000.
Deeds from C. J. Malmsten and wife,
former Fremonters now residing in
Lincoln; Eugene D. Diers and wife, and
Walter C. Diers and wife, all of Fre
mont; S. S. Sidner, Jr., and wife of
Kearney, and Arthur C. Sidner and
wife of Fremont to the new corpora
tion were filed at the Dodge county
register of deeds office.
Articles of incorporation of the buy
er company were filed with the secre
tary of state at Lincoln. Incorporators
were M. E. Seifert, George Svoboda
and K. J. Smutz, all employes of the
law firm of Sidner, Lee and Gunderson.
Members of the law firm said the cor
poration was formed for out-of-city
clients, and that employes of the law
firm were incorporators as routine
business procedure.
Authorized capital of the corpora
tion, the articles disclosed, is $150,000,
of which $10,00 must have been paid
in before the corporation could com
mence business.
The property involved is the fivestory bank building at Fifth and Main
Streets. It houses the Stephens Na
tional Bank, Brodkey’s Jewelry Store,
the Fremont State Company, with busi
ness and professional offices occupying
the four floors above the street level.

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Federal Reserve Bank of St. Louis

CARL G. SWANSON
Secretary
Omaha

Cooling Unit

The Bank of Elgin, Nebraska, re
cently installed the first commercial
type air conditioning unit to be placed
in Elgin. This new machine is a
Chrysler Air-Temp five-ton unit. The
five-ton rating means that this ma
chine would be capable of freezing five
tons of ice in 24 hours, if used in that
manner. The air is pulled in at the
floor level, filtered and drawn over a
Freon coil and forced out at the top
by two squirrel type fans.
The machine is located in the north
east corner of the bank lobby and will
have ducts leading to front offices and
to the directors’ room.

est for this year, topping the July fig
ure $1,904,194.33 by more than $20,000.
Clearings for August of last year
were $1,385,663.27.

Paym ent D eclines
During the fiscal year ended June
30, 1947, the 12 Federal Land Banks
of the Farm Credit Administration
showed an increase in new long-term
farm mortgage business and a decline
in the rate of pay-offs of old loans, the
U. S. Department of Agriculture an
nounced. Applications closed during
the year numbered 32,193 for a total of
$150,056,051, reflecting increases of 3.4
per cent in number and 1.13 per cent
in amount from 1946.
During the last fiscal year the bor
rowers from the Federal land banks
paid in regular and advance install
ments on their loans $31,607,265, and
$136,185,917 was paid in full prior to
maturity. Repayments averaged $1.62
for each dollar loaned during the past
fiscal year compared with $1.81 during
1946, and $3.11 in 1945. At the end of
the fiscal year the banks had 331,743
loans on their books totaling $910,092,995.

Field Man
The First National Bank, Beatrice,
Nebraska, announces the employment
of Reinhold P. Rinne of Beatrice, as
agricultural consultant or field service
representative for the bank. He will
be available for consultation by farmer
clients of the bank and to assist them
in every way possible.
Mr. Rinne graduated from the Col
lege of Agriculture of the University
of Nebraska. He taught vocational ag
riculture at Holmesville and was with
the Federal Security Administration in
Lincoln and Aurora before going to
Beatrice where he held a similar posi
tion for five years. He was reared on
a farm and is acquainted by both ex
perience and education with farm prob
lems.

Rem odeled
A change in the interior of the First
National Bank of Fairbury, Nebraska,
greeted customers recently. The grill
work which had been in front of the
various cashiers’ and savings depart
ment booths has been removed.
In its place a walnut finish paneling
has been placed, blending in with the
remainder of the woodwork in the in
terior of the bank.

C learing Record
Fremont, Nebraska, bank clearings
in August totaled $1,924,739.64, highest
clearing figure for a single month since
July, 1927.
The August clearings were the high

INCOLN, Nebraska bankers are
agreed that World War II vets
are looking after No. 1 just as carefully
as any financier could hope for. Vets
in Lincoln and the immediate trade
territory have not come forward as
was expected when their terminal
leave bonds became payable on Sep
tember 1.
There was a heavy run on the first
day, but a check revealed that only
1,396 ex-G. I.’s had demanded cash dur
ing the first two days. Since then
there has been only an insignificant
trickle of vets seeking money.
One of Lincoln’s downtown banks
cashed 418 bonds aggregating $101,347
on the first day. The aggregate for
the three downtown institutions was
$212,249 for 1,396 bonds.
Inquiry among the veterans as they

Northwestern Banker, O c to b e r , 1947

N e b ra s ka

News

got their money developed that a large
amount of it was going into local circu
lation through payment of debts, re
modeling homes, down payments on
homes to be bought, and many other
things to add to the cheer and com
fort of the vet and his family. Auto
mobiles had a small spot in this pic
ture.
Howard Hadley, vice president and
trust officer of the Continental Na
tional Bank, has returned from an
extended vacation spent with his
brother in Billings, Montana. Condi
tions in that part of the country are
bristling, Mr. Hadley said. Farmers
and stock growers generally are out
of debt—especially the larger oper
ators. Therefore, Mr. Hadley said,
stock growers in particular are not
greatly worried about whether prices
for their products take a sudden drop.
“Of course,” Mr. Hadley said, “they are
hoping the present high levels will
hold.
Montana has an abundance of feed,
according to Mr. Hadley, and prospects
are bright for good crops this year,
wheat, oats and alfalfa being the major
crops. Farmers there are irrigationminded. They have plenty of water
available from the Yellowstone River,
“and are certainly using it,” he de
clared.
T. B. Strain, president of the Conti
nental, also has returned from his va
cation. He spent almost a month at
Charlevoix, Michigan.
Lincoln’s six national and state
banks have entered into a co-operative

local advertising campaign in the daily
newspapers. On a recent Sunday they
joined in a full page display empha
sizing that in the past the facilities of
each have been devoted to the ad
vancement of the state’s agricultural
activities, and that that policy will be
continued.
Also stressed is the fact that while
the population of Lincoln has gained
about 20 per cent during the last six
years, the increase in banking facili

Northwestern Banker, O cto be r, 1947

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ties, equipment and growth of the
banks has been almost 150 per cent.
On June 30, 1941, total assets were
shown as $53,485,000, and $131,479,000
on June 30, 1947.
Officials of Lincoln’s three down
town national banks are looking ahead
with considerable expectancy to the
annual meeting of the American Bank
ers Association at Atlantic City, Sep
tember 28th to October 3rd. Each
bank will be represented at the con
vention.
The business trend of Lincoln banks
during the eight months of 1947 end
ing August 30th, has been a steady up
trend, according to the last report of
the Lincoln Clearing House Associa
tion. For the eight months the gain
amounted to $43,579,805, compared to
the same period in 1946. The aggre
gate for the 1947 span was $216,881,201.
August clearings were $27,446,399, as
against $27,315,323 for July, and $23,040,730 for August, 1946.

ers are making. There is a pent up
demand for cars, farm equipment and
what have you. The banker in rural
areas is closer to his customer than
the city banker and can exert a great
influence with his customers against
wasteful spending.
“We have had good crops and prices.
Fortunately, in this territory, we have
had little farm land speculation. Our
farmers are in excellent financial posi
tion. Now is the time to encourage
savings and it is our responsibility to
assist in the investment of these
funds.”

C. H. Schacht
C. H. (Chris) Schacht, 69, accountant
for a Nebraska City wholesale firm,
H. O. Rice Company, passed away sud
denly at his home. His death was at
tributed to a heart attack.
The deceased will be remembered by
many as a former employe of the old
Nemaha County Bank, where he was
employed for approximately 23 years.

T. B. Strain, president of the Conti
Short Wait
nental National Bank, has taken the
Mechanic: The trouble with your
position that both the city and country car, Miss, is that you have a short cir
banker, under current economic con cuit in your wiring.
ditions, must answer affirmatively the
Sweet Young Thing: Can you length
age-old question, “Am I my brother’s en it just a little while I wait?
keeper?”
Attending a meeting made up large
Easy to Turn
ly of invited city and country bankers,
“ He’s got a head like a door-knob.”
and a scattering of commerce and in
“ How come?”
dustry representatives, Mr. Strain was
“Any girl can turn it!”
asked for his views on present day
economics. Here is his answer as told
Big Surprise
by Mr. Strain to this reporter:
Diplo: “ If you have $10 in one
“Many years ago a very smart bank
er told me that it was a part of a pocket and $15 in the other, what
banker’s responsibility to conserve the have you?”
Matt: “ I have on somebody else’s
assets of his community. If that was
sound advice, then I am wondering if pants.”
it is not even more important today
with the high prices and abundant
Pretty Doggy
money supply.
Teacher: Quite a few plants have
“ In my conversations with country “dog” for an antecedent. For example,
bankers, I have been asking them how dogwood, dog rose and dog violet.
much their deposits are likely to Johnny, can you think of any other?
shrink from purchases their custom- Johnny: Yes, ma’am. Collie-flower.

//«»TOOTLE-LACY
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as well as routine assignments with thorough understanding and friendly
co-operation. We invite your inquiry!
*

N e b ra s ka

N ew s

turned to Duke University, Durham,
N. C., for her second year. Mr. Stew
art is vice president-cashier of the
First National Bank of Omaha. The
Stewarts’ son, Jimmy, was to re-enter
the Fountain Valley School at Colo
rado Springs, Colorado. The Stewarts
recently returned from their summer
cottage at Lake Okoboji.

Mr. and Mrs. J. B. Frazier, Jr., and
ha National Bank, was among the son, Duncan, have returned after a
business and railroad leaders whovacation of three weeks at Lake
gathered recently at Sun Valley, Okoboji, Iowa. Mr. Frazier is an
Idaho, to celebrate the sixty-second Omaha investment banker.
birthday of George F. Ashby, presi
dent of the Union Pacific Railroad.
Mr. and Mrs. T. L. Davis have re
M. Clark is a director of the Union turned home from their cottage at the
Minnesouri Angling Club on Lake
Pacific.
Mr. and Mrs. Clark returned in Miltona, near Alexandria, Minnesota.
August from a vacation at Elkhorn They left for the lakes in June. Mr.
Davis is president of the First Na
Lodge, Estes Park, Colorado.
tional Bank of Omaha.
Mr. and Mrs. Lawrence Brinker,
World War II veterans’ terminal
leave bond cash-ins at the nine Omaha who also vacationed at Lake Miltona,
banks mounted to near the million- preceded the Davis family home.
Others who returned earlier were
dollar mark in the first two days that
the bonds could be cashed. The exact Mr. and Mrs. Walter B. Roberts and
total for the two-day period was $832,- Mr. and Mrs. Wallace E. Spear.
247 to 3,264 vets.
Fred W. Thomas^ vice president of
The Omaha National, First National,
United States National and Livestock the First National Bank of Omaha,
National led, with respective totals of gave a luncheon early in September
at Omaha’s Paxton Hotel for Russell
$52,930, $50,000, $44,236, and $34,354.
Firestone, assistant treasurer of the
The Wachob-Bender Corporation, Firestone Tire and Rubber Company,
Omaha investment banking firm, has and Msgr. E. J. (Father) Flanagan of
purchased the $600,000 Atlantic, Iowa, Boys Town.
Mr. Firestone was in Omaha to pre
municipal utilities plant extension
bond issue on a bid of $12,050 premium sent Father Flanagan a Shorthorn
for the 2 per cent bonds. The bonds steer, Royal Jupiter, who won grand
were dated September 2, 1947, and will championship honors last December
mature each September 1, beginning in at the Chicago International Livestock
Exposition. The Firestone Company
1950 through 1967.
Runner up in the bidding was the has had Royal Jupiter on a 23,000-mile
Carlton 1). Beh Company of Des tour of farm states to promote interest
Moines, on a combination bid with in the raising of blooded livestock.
Payne, Webber & Jackson of Chicago.
Miss Gertrude Stewart, daughter of
Their bid was for a $12,000 premium
Mr. and Mrs. J. T. Stewart,III, has re
on the 2 per cent issue.
ALE CLARK, president of the Oma

NATIONAL BANK
MILTON TOOTLE

FRED T. BURRI

P R E S ID E N T

C A S H IE R

GRAHAM G. LACY

E. H. SCHOPP

CH.

OF TH E

BOARD

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Federal Reserve Bank of St. Louis

ASST.

C A S H IE R

Robert Smith, 80-year-old Clerk of
the District Court at Omaha, visited
three of Omaha’s largest banks Sep
tember 8.
At each, he stopped long enough to
draw out all of the thousands of dol
lars in the Clerk of the District Court’s
fund.
Then he filled out a deposit slip and
put every dollar he withdrew back
into the same banks.
The maneuver was one of the pre
cautions Mr. Smith took to be on the
“safe side” of LB 65, a new law which
became effective September 7 (a Sun
day).
A convention marking the thirtieth
anniversary of organization of the
Federal Land Bank of Omaha was
planned for September 25-26 at Rapid
City, South Dakota, where presidents
and secretary-treasurers of 200 co
operative National Farm Loan Asso
ciations were to gather.
Delegates were expected from Ne
braska, Iowa, South Dakota, and
Wyoming. Governor George T. Mickelson of South Dakota and J. R. Isleib
of Washington, Land Bank Commis
sioner for the Farm Credit Administra
tion, were to be among the speakers.
Bank employes of Omaha and Coun
cil Bluffs are going “back to school”
this fall.
The Omaha Chapter, American In
stitute of Banking, is sponsoring an
educational course which began last
month. AIB President Ray Cordes
and Educational Chairman Lester
Souba said the course was to include
classes in Fundamentals of Banking,

ST. JOSEPH, MO.
M em b er F ed era l D ep o sit
I n s u r a n c e C o r p o r a tio n

R. E. WALES
V IC E

P R E S ID E N T

E. L. CRUME
ASST.

C A S H IE R

Northwestern

Banker,

October,

1947

N ebraska

News

Negotiable Instruments, Economics
and Home Mortgage Lending.
Instructors, introduced at a dinner
held at the Omaha Athletic Club, are
Ray F. Silzewski, Herbert W. Fisher,
A. I). Agee and Albert R. Sterling.

Among four associate chairmen
named for the annual Omaha Com

munity Chest drive in October are
Edwin N. Van Horne, president of the

Federal Land Bank of Omaha, and A.
W. Gordon, president of the Omaha
Loan and Building Association.
Mr. Van Horne has served on the
board of the United War and Com
munity Fund at Omaha. Before he
came to Omaha, he was head of Com-

Lei I s H andle Y ou r
l i v e Stock Credits
For quick and efficient handling of your cus
tomers' live stock proceeds, have them placed with
us for your credit and their use.
W e are the only hank at the Yards and have
direct contact with all of the commission firms
operating on the St. Joseph market.

South St. Joseph, Mo.
O F F IC E R S
J. A . Greenfield, President
T hos. J. M cC u llou g h , V ic e President
M. E. B lanchard, Cashier
Louis J. K om er, A ssistant Cashier
H. H. Broadhead, Jr., A ssistant Cashier

“ ONLY BANK IN THE YARDS99

45 YEARS

NATIONAL BANK o f COMMERCE
LINCOLN, NEBRASKA
F ed era l D e p o s it In su ra n ce

Northwestern Banker, O cto be r, 1947

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Federal Reserve Bank of St. Louis

vice president of the Omaha National
Bank, was announced recently. She
will wed Wendell Coates of Ponca
City, Oklahoma, October 23 at the
Dundee Presbyterian Church in Oma
ha. Mr. Coates is the son of Mr. and
Mrs. Floyd L. Coates of Ada, Okla
homa.
Miss Smith is a graduate of Brownell
Hall in Omaha and of Grinnell Col
lege.

Mr. and Mrs. Ellsworth Moser, en
route home from a vacation in Canada,
stopped for two weeks at Chimney
Corners, the summer cottage of the
Misses Emily Keller and Julie Brown
of Omaha, at Ogunquit, Maine. Mr.
Moser is executive vice president of
the United States National Bank of
Omaha.
The late Agnes K. Schantz, whose
husband, Albert L. Schantz, is former
president of the old State Bank of
Omaha, left real and personal property
valued at $707,874.39, according to an
inheritance decree signed by Douglas
County Judge Robert R. Troyer.
Mrs. Schantz, a one time director of
the Bank, was the first woman bank
director in Nebraska.
Of the total, $495,380.61 was subject
to tax and goes to her husband. The
Federal estate tax on the inheritance
was $161,555.59.
Omaha banks and business firms re
cently pointed to an increase in no
fund or insufficient-fund and forged
checks as an indication that the days
of flush money are on the wane.
Some persons have gone through
their war-period funds and are trying

SERVICE
M em b er

The engagement of Miss Eleanor
Smith, daughter of Mrs. Victor B.
Smith and the late Mr. Smith, who was

Charles Saunders, vice president of
the First National Bank of Omaha, ac
companied by his wife and two daugh
ters, Marion and Sue, returned re
cently from a motor trip to Yellow
stone National Park and Sun Valley.
On their way home, they stopped at
Salt Lake City and at Grand Lake,
Colorado.

F irst St. <Jose|»h
STOCK Y A H IIS ISAAK

OVER

munity Chest campaigns at St. Joseph,
Missouri, and Lincoln, Nebraska.
Mr. Gordon is one of the organizers
of the Omaha Chest and was its initial
gifts chairman in the first campaign
back in 1923.

BANKS

Bought and Sold

Confidentially and with becoming dignity
BA N K E M P L O Y E E S P L A C E D .

C o r p o r a tio n

42 Y e a r s S a t is f a c t o r y S e r v ic e

THE CHARLES E. WALTERS CO.
O MA H A ,

NEBRASKA

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Federal Reserve Bank of St. Louis

Northwestern Banker, O cto be r, J947

N e b ra s ka

N ew s

to continue their high living without
the “wherewithal!,” bankers reported.
The Better Business Bureau at
Omaha also has noted an increase in
rackets.
An Omaha bank had several cases
of forged payroll checks recently. A
bank spokesman said that the forgers
print the checks and usually pass
them, or try to, at smaller stores.
Customarily, they make a small pur
chase to avoid suspicion.
The storekeeper usually doesn’t
realize he’s been taken for a ride until
the bank refuses to honor the check.—
The End.

To Rem odel
The interior of the Nebraska State
Bank, South Sioux City, will be re
arranged and modernized for “more
efficient and orderly service,” Cashier
K. J. Peters announced.
“The remodeling will in no way alter

future plans for permanent construc
tion to provide what we consider ade
quate banking quarters to properly
serve the community,” Mr. Peters said.
The remodeling will include a new
heating plant which also is suitable
for summer cooling. Most of the ma
chines used in the bank recently were
moved into the new addition in the
rear.
“We will modernize and rearrange
our teller and lobby space to further
improve internal operations and pro
vide more efficient and orderly service
for our customers,” he commented.
Meanwhile, bank deposits recently
went over the $3,000,000 mark, an alltime high.

N ational Trends
Up-to-date information about na
tional trends is given in the tenth
annual report of earnings and ex
penses of insured commercial banks

9 * i J li+ ic& U t----- *7h e

JL HE

Continental,

G o*it¿4 ie+ tÍ< 2 ,l------

“ N eb rask a's

friendly

b a n k ,"

cordially invites you to draw upon a n y or all of its
m any

banking

facilities

spondent business.

for

handling

your

corre

Noted for its prompt, courteous

and efficient service and its staff of w ell-qualified
experts, the Continental National Bank stands read y
and eag er to serve you in Lincoln.

r—Y7lG

C o n t in e n t a l N a t io n a l

B a°rn k

LIN C O LN

Member Federal Deposit Insurance Corporation

Northwestern Banker, O cto be r, 1947

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

in 1946, which has been published
by the Bank Management Commission
of the American Bankers Association,
according to E. V. Krick, chairman of
the Commission. Mr. Krick is senior
vice president and cashier of the
American Trust Company, San Fran
cisco, California.
“The report, which is being mailed
to all A.B.A. member banks, provides
bankers with the means of comparing
the operating results of their own
banks with those of other banks of
similar size,” Mr. Krick says. “ The
study brings figures on earnings and
expenses of all insured commercial
banks in ratios expressed as dollars
per $100 of deposits. The figures are
classified into bank charter groups
which include insured commercial
state banks, national banks, and total
insured commercial banks; and in
each of the three charter classifica
tions the banks are grouped into ten
size divisions based on total deposits.
“At the top of each table is a blank
line in which the individual banker
can insert the figures for his own
bank. With these data before him, a
banker may compare the operations
of his own bank with those of banks
of similar size in his own state or in
other states,” Mr. Krick says. “The
Commission urges the use of this
study by every banker in analyzing
his own bank.
“The importance of the information
contained in the study is governed
by the actual use made of it by banks.
These figures may be used as a yard
stick in determining whether your
bank is average, above average, or
below average in earnings and opera
tion.”

In the Sad d le
The American idea of government
being a servant rather than a master
of the people, cannot be fully appre
ciated until one has been forced to
approach a public official or a public

81
agency in an attitude of supplication. preparing bids. At the same time, the It was made possible by constant im
Immediately the position of private bricklayer’s wage has risen to $24 a provement in our ability to produce
citizen and public servant undergoes day. However, if production is taken more goods and services in less time
a chilling reversal, particularly if the into account, the bricklayer’s wage, through better machines, better man
matter involves the economic wel compared with the twenties, works out agement and improved efficiency of
the workers.” It is to be hoped that
to something like $120 per day.
fare of the private citizen.
The building trades may be an ex American labor will listen to its own
Nowadays it is easy to illustrate
how quickly the private citizen can treme example of cost-boosting. But experts.
be reduced to the status of a favor almost every major industry has re
seeking subject. For example, in a ported that man-hour output has gone
Outside Help
Man (to Pullman porter who was
little Oregon community the people down even as wages have risen time
decided to vote into existence a Public and time again. And that is one reason thrown 50 ft. from car when train
Utility District. They had been told why prices for commodities have gone was derailed): Great Scott, man,
that that was the best way of getting up as fast and, in many cases, faster aren’t you killed?
Porter (rubbing his head): No, suh.
the greatest benefit from the govern than wages.
An economist for a major labor I guess that concrete post musta broke
ment’s Bonneville power dam on the
Columbia River. As a result, the local union recently said this: “The whole my fall.
community went into debt to buy out history of America’s industrial growth
Losing Fight
the local power company. A tax-free has demonstrated that we were able
Sandy says he got his black eye
to
obtain
a
higher
standard
of
living
political organization was set up to
fighting for a woman’s honor . . .
dispense electric power with absolute than any other nation by progressively seems she wanted to keep it.
raising
wages
in
relation
to
prices
.
.
.
authority over rates and unhindered
by any form of state regulation. The
PUD threatened heavy penalties for
connection of energy-using appliances
without permission. For example, one
home bought a new electric water
heater which the owner was not
allowed to connect for nearly two
years. There was no recourse to
utility commissions or to any regula
tory agency such as would have been
the case with a private electric com
pany.
It is hard to realize except through
personal experience, even of the mild
est nature, the helplessness of the
individual when he is pitted against
uncontrolled political authority. It is
a kind of monopoly that crushes the
human soul. Ultimately, as the plight
of suffering millions the world over
testifies, it becomes the difference be
tween life and death—and it is a
perilously short step from one to the
T h e N e w F e d e r a l B u ild in g , lo ca ted a t T w e lfth B o u le v a r d a n d
other.
M a r k e t S t r e e t o v e r lo o k in g M e m o r i a l P l a z a , is t h e la r g e s t
F e d e r a l b u i l d i n g in

High wages for labor are obviously
desirable. But the failure of a large
segment of labor to do a day’s work
commensurate with present record
earnings is one of the most dangerous
of today’s problems, and is an impor
tant contributory factor in price in
flation and the deterioration of the dol
lar.
The president of the Portland, Ore
gon, Chamber of Commerce, recently
cited the case of bricklayers who, in
the late twenties, would lay from 1,500
to 2,000 bricks per day. Now output is
considered good if a man lays 500, and
most contractors estimate 300 when
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

S t. L o u is . C o m p le t e d in

O ctob er, 1935, it

n o w h ou ses m o st o f th e g o v e r n m e n t o ffic e s in t h e c ity .

Dangerous Problem

VVe

offer complete facilities for the

prom pt h a n d lin g of collection and
transit item s in one of the country’s
increasingly important industrial areas.

MEMBER

FEDERAL

DEPOSIT

IN SURAN CE

CO RPO RA TIO N

F. E. DAVENPORT & CO.

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Federal Reserve Bank of St. Louis

OM AHA

Northwestern Banker, O c to b e r , 1947

'm
\Wt

SIO CK NMlOHAi.

ftKHK

JOME•30,1947
te w sn s

ero

fO R R E SP O N O lW

banks

W A D E R . M A R T IN , v ic e p re sid e n t
o f L iv e S to c k N a tio n a l B a n k , and
C o rre sp o n d e n t B ankin g A d v is o r .

PARD O N US IF OUR PRIDE IS S HO WI N G . . .
F COURSE we're proud that in 10 years
bank deposits have grown to 36 million
dollars from more than 400 banks in the Great
Plains and Rocky Mountain area. But we're more
thankful for this record as a demonstration of
confidence by our neighbors— a confidence that
brings mutual benefits.
We believe our staff of officer-specialists— work
ing as a team to provide complete correspondent
banking facilities— is the reason for such confi
dence. A member of this team is our bankers'
banker, W ade R. Martin, vice president. He's a
specialist in correspondent problems with 25

years of experience on your "side of the desk."
Also as a former Director of Banking for Nebras
ka, he has a wealth of valuable banking law
experience upon which many
banks draw.

correspondent

Practical, hard-earned experience is the keystone
of the correspondent banking facilities of The
Bank of Friendly 24-Hour Service. Pardon us, if
our pride is showing— but we believe the confi
dence of more than 400 banks warrants our in
vitation to you to make Live Stock National your
correspondent bank.

LIVE STOCK
O
T H E

BANK
Member

Northwestern Banker, O cto be r, 1947

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

O F
Fe de rai

N E B R A S K A

FRI ENDLY
Reserve

and

Fe de rai

2 4 - H O U R
D e p osi t

Insurance

SERVICE

Corporation

The Moira C on ven tion
Top Business Execu tives and Statesm en W ill
Spark the Brilliant Program in Des M oines,
O cto b e r 6 to 8
HEN Iowa
bankers come to 5. Annual Address of the President
W. H. Brenton
Des Moines for their annual
convention on October 6th to
R Presentation to the President of
8th, they will be privileged to hear an
the Ivory Gavel
N. P. Black
array of speakers such as has never
State Superintendent of Banking:
before been presented on any state
cashier, Perry State Bank; presi
convention program. Men of national
dent, Dallas County Savings Bank.
and international prominence will
Minburn.
headline the Iowa program—Allan B.
7. Response
W. H. Brenton
Kline, Paul G. Hoffman, Harvey S.
Firestone, Jr., Nelson A. Rockefeller,
8. President Appoints Convention
Harold E. Stassen, Joseph M. Dodge,
Committees
and Robert A. Taft. Reporters from
(a) On Resolutions
Associated Press, United Press, and
(b) Any Special Committees
radio news services, together with
9.
Adopting Reports of the Associa
newsreel operators, will flock to Iowa’s
tion’s Committee Chairmen
capital city to flash to the United
Allan B. Kline
States and the world the comment that 10. Address
President, Iowa Farm Bureau
these men have to make on business
Federation, Des Moines; vice presi
and economic problems. Fortunate
dent, American Farm Bureau
indeed is the Iowa banker who attends
Federation
his state convention this month.
“Prices, Prosperity and Peace’’
An outline of the program reads as
follows:

Monday, October 6th
(First Day)
10:00 A. M.—
Registration commences on Mez

zanine Floor, Hotel Fort Des Moines.
PROGRAM
1:15 P.M.—
1. Convention Called to Order
W. H. Brenton

President, Iowa Bankers Associa
tion; President, Brenton State
Bank, Dallas Center, among other
Iowa banks.
2. Invocation
3. Address of Welcome E. F. Buckley
President, Des Moines Clearing
House Association; president, Cen
tral National Bank & Trust Com
pany, Des Moines.
4. Response to Address of Welcome
H. C. Houghton, Jr.

Vice president and Treasurer, Iowa
Bankers Association; president,
Houghton State Bank, Red Oak

The balance of this afternoon’s con
vention session is “shop talk” and
“Grass Roots” conference:

For years at the annual State Confer
ence of County Association Officers,
held at the time of the Annual State
Convention of the Iowa Bankers Asso
ciation, many subjects relating to still
better “Bank Administration and Op
eration” have been discussed. While
this annual Conference is conducted
under the direct auspices of the “Offi
cers of the County and Intercounty
Bankers Associations” of the State
Association, its discussions are open to
every Iowa banker and bank director
who may desire to attend.
2:45 P.M,-----11. Greetings to the Conference
W. H. Brenton

President, Iowa Bankers Associa
tion
(Turns meeting over to Thayne L.
Greenleaf, Eldora)

Did you know that your Banker’s Blanket Bond
does not protect your Cash Letter while it is
transit by mail or express? Ask about our
Cash Letter Policy, which fills the gap.
F IR S T

N A T IO N A L

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Federal Reserve Bank of St. Louis

BANK

B U I L D IN G

C H IC A G O

H A R O L D E. B R E N T O N
President
Bankers A ssocia tion

Iow a

12. Remarks

Thayne E. Greenleaf

President, Organization of Officers
of County Bankers Associations;
president, Hardin County Bankers
Association; vice president, Hardin
County Savings Bank, Eldora
13. Report of the Vice President
...................... A. F. Hansen

Vice president, Organization of
Officers of County Bankers Asso
ciations; president, O’Brien County
Bankers Association; vice presi
dent and cashier, Security State
Bank, Hartley.
14. Report of the Secretary
....................... ..............L. F. Kruse

Secretary, Organization of Officers
of County Bankers Associations;
president, Mills County Bankers
Association; president, Mineola
State Bank, Mineola.
15. Appointment of Committees

(a) Nominating Committee

Speakers
2:5« P. M.—

16. Talk
Roger F. Warin
State Director for Iowa, U. S. Sav
ings Bonds Division, Treasury De
partment, Des Moines
“The Importance of Owning U. S.
Savings Bonds”

17. Talk
F. C. Atkins
Chairman, I.B.A. Committee on
“Destruction List” of bank forms;

Scarborough & Company
Insurance Counselors
3, IL L IN O IS

STATE

to Banks

4325

N o r t h w e s t e r n Banker, October, 1947

Iow a

News

vice president and cashier, Bank
ers Trust Company, Des Moines.
“Report of Committee on ‘Destruc
tion List of Bank Forms—
Iowa Schedule’ ’’
18. Talk
B. W. Lodwick

the Iowa State College of Agricul
ture, Ames------ Why We Need Such
a School.”
20. Talk
Walter Brown

Outside Farm R e p re s e n ta tiv e ,
Community National Bank &
Trust Company, Knoxville; mem
ber, Agricultural Committee of
I.B.A.

Iowa State Director, Farmers
Home Administration, Des Moines.
“The ‘Farmers Home Administra
tion Act of 1946’— Its Insured Mort
gage Features.”
3:25 P. M.—
19. Talk

Robert T. Knapp

Cashier, First National Bank, Den
ison; Retiring Secretary, Crawford
County Bankers Association

“The Marion County Bankers Asso
ciation in August Sponsored a
County-Wide Contour Terrace
Plowing Contest—A Soil Conserva
tion Demonstration and a Public
Relations Project.”
21. Talk
O. I). Ellsworth

Executive vice president, Dallas
County State Bank, Adel.

“Our Agricultural Credit School at

of “ Organization of Officers of
County Bankers Associations.”
4:00 P.M.—
23. Session Adjourned

Monday Evening, October 6th
(First Day)
Host, the Des Moines Clearing House.
Entertainment—for both men and
women—admission by Ticket Only!
(1) For the Ladies—
6:00 P. M. Dinner, Yolinkers
Tea Room
7:30 P. M.— Return to
the

Hotel Fort Des Moines
(2) For the Men—
5:00 P. M.—Social Hour, Wakonda Club
6:00 P. M.—B u ft e t S u p p e r,
Wakonda Club.
7:30 P. M.—R eturn
to the

CONVENTION GREETINGS

Hotel Fort Des Moines.
(3) For both Ladies and Gentle
men—Entertainment Extraor
dinaire!
8:15 P.M. (Details will appear

This month all roads lead to the 1947 annual convention of
the Iowa Bankers Association in Des Moines.

“Improved Method of Checking
Signatures in Single Posting.”
22. Report of Nominating Committee

There you will

in printed program.)

find the First National Bank in Sioux City well represented.

10:30 P. M.— Caucus of Iowa
members—Palm Room

Likp the Iowa annual convention, First National Bank corre

The customary annual A.B.A. cau
cus will be held in the Palm Room,
Mezzanine Floor, Hotel Fort Des
Moines. All Iowa A.B.A. members
in attendance at the convention
are urged to bd present at this an
nual caucus. It is at this caucus
that nominations are made for the
different Iowa A.B.A. officers and
which nominations are then pre
sented for election at the annual
meeting of the Iowa A.B.A. mem
bers to come the next morning,

spondent service becomes better each year.
You, too, will enjoy a connection with this institution.

A . G. Sam, President
Fritz Fritzson, Vice Pres, and Cashier

E. A. Johnson, Assistant Cashier

J. T. Grant, Vice President

H. H. Strifert, Assistant Cashier

A.B.A.

K. J. Shannon, Assistant Cashier
J. Ford Wheeler, Auditor

J. R. Graning, Assistant Cashier

MEMBER FEDERAL RESERVE SYSTEM

Tuesday, October 7, 1947.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Tuesday A. M., October 7th
8:00 A .M .—
1. Registration

zanine Floor,
Moines.

continued on Mez
Hotel Fort Des

10:00 A. M.—
2. Convention Called to Order
President W. H. Brenton

3. Meeting of Iowa A.B.A. mem
bers—
(a) Remarks........... H. W. Sehaller
A.B.A. vice president for Iowa;
President, Citizens First National
Bank, Storm Lake.

NATIONAL
BANK
*

/ f t

Northwestern Bànkèt, October, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

/ O

/ f l f

★

(b) Election of Iowa A.B.A. Offi
cers.
(c) Any New or Unfinished Busi
ness.
(d) Iowa A.B.A. M eeting Ad
journed.
(e) Mr. Sehaller Turns Meeting
Back to. President Brenton.

Tbu Get
the Money Quickly
The proceeds of live stock

All you need do is ask your

sales in Chicago are speedily

sh ip p e rs to in s tru c t th e ir

transferred to your bank if

Chicago commission firms to

routed through us. The stock

route through this bank the

yards postoffice is just across

money received from live

the street and the advice is

stock sales. We shall be pleased

mailed on the day of receipt.

to send you instruction cards.

Jj / t e

=nli

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

» A

LIVE STOCK
BANK

a f i e

e ^

/ i e

f je

ESTABLISHED 1868

U N IO N STO C K YARDS

Member Federal Deposit Insurance Corporation

Northwestern Banker, October, 1947

Iow a

11:00 A. M.—
4. Address

News

Charles C. Pineo

Loan Director, International Bank
for Reconstruction and Develop
ment, Washington, D. C.
“The Hole of the International
Bank.”
5. Address
Paul G. Hoffman

12:00 Noon
Luncheon Meeting, Iowa Junior
Bankers Association

Arkansas B ankers Association;
assistant cashier, Worthen Bank &
Trust Company, Little Rock.

South Ballroom Hotel Fort Des
Moines.

“Advantages of a Junior Bankers
Section.”
4. Talk
K. J . McDonald

12:45 P. M.—
1. Remarks

Harold R. Spencer

President, Iowa Junior Bankers
Association; assistant cashier, Oak
land Savings Bank, Oakland.

President, The Studebaker Cor
poration, South Bend, Indiana;
deputy chairman, Federal Reserve
Bank of Chicago.

2. Report
Clarence I). Clausen
Vice president and acting secre
tary, Iowa Junior Bankers Associa
tion; assistant cashier, Citizens Na
tional Bank, Boone

“Management’s Responsibility for
the Maintenance of a Free Econ
omy.”

3. Talk

12:00 Noon—
6. Session Adjourned.

Melvin Lawson

President, Junior Bankers Section,

President, Iowa Trust & Savings
Bank, Estherville.
“Report on Second Annual Meeting
of Federal Reserve Forum of Fed
eral Reserve Bank, Minneapolis.”
5. Election.
1:45 P. M.—
6. Adjournment.
2:00 P. M.—
1. Convention Called to Order
President W. H. Brenton
2. Election of I.B.A. Officers—

(a) President
(b) Vice President-treasurer

★ TODAY, AS EVER
^

HEADQUARTERS

for Northeastern

Iowa

3. Report of Resolutions Committee.
2:45 P. M.—
4. Address
Harvey S. Firestone, Jr.
President, The Firestone Tire &
Rubber Company, Akron, Ohio.
“Agriculture and Industry.”
3:30 P. M.—
5. Address
Nelson A. Rockefeller

New York City
“ International Economic Coopera
tion.”
4:15 P. M.—
6. Session Adjourned.
Please Note: This evening’s session

Bankers.

This bank offers quick, efficient
services and complete facilities.

(Tuesday) and Wednesday forenoon
session will both be held at the KRNT
Radio Theater.

Here is the logical channel for

Dinner— Then to KRNT RADIO
Theater
6:30 P. M. Sharp!—
Doors to Grand Ballroom, Mezza
nine Floor, Hotel Fort Des Moines,
will he open to all those holding
dinner tickets.

your Northeastern Iowa business.

M em ber . . . F e d e ra l D ep o sit In su ra n c e C o r p o r a t io n
F e d e ra l R e se rv e S ystem

This dinner has been arranged for
the convenience of the men and
women attending this Convention
who want a good dinner and be
comfortably seated and who wish
to avoid standing in line some
where and who might otherwise
find eating facilities in the Hotel
Fort Des Moines and other hotels
and eating places in the city ex
tremely crowded. The “Organiza
tion of Past Presidents and ExCouncilmen of I.B.A.” and the “50
Year or More Iowa Bankers,” will
also have dinner in the Grand Ball
room at specially designated tables.

W A TERLO O

7:44 P. M.—A Word from the Presiding
Officer, George J. Schaller.
7:45 P. M.— Ends the Dinner Period.
Important: Your Convention badge

★

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Northwestern Banker, O c to b e r. 1947
Federal Reserve Bank of St. Louis

★

is your theater ticket and will en
title you to that part of the theater
which has been especially reserved
for bankers and their wives, di
rectors, and their friends.

C O O P E R A T IO N - F A M IL Y S T Y L E !
Because of the very nature of farming, the mem
bers of a farm family work together as helpful,
congenial partners. Though each has his responsi
bilities, all share the tasks that call for cooperation.
And whenever there are emergencies . . . or jobs,
like threshing, that require extra help, they count
on their neighbors to pitch in. You’ll find the
same friendly spirit of cooperation at Marquette.

Association meets at Des Moines, October 6 to 8.
It’s sure to be another fruitful get-together. Hope
you’re planning to be there.

Whatever cooperation you ask for—an exchange
of credit information, help in handling loans, or
any of the other services offered by Marquette’s
Department of Banks and Banking —you’re sure
to get “family style” cooperation.
Several of your friends from Marquette will be
on hand to greet you when the Iowa State Bankers

T H E
S T R O N G

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Federal Reserve Bank of St. Louis

F R I E N D

O F

T H E

R ussell L. Stotesbery
President
DEPARTM ENT

Charles C. R ieger
Vice-Pres.

BANKS

L ynn F uller
Executive Vice-Pres.
AND

B A N K IN G

Oscar A. Schultz
Asst. Vice-Pres.

MARQUETTE
BANK
OF M IN N EA P O LIS
MEMBER FEDERATDEPOSIT INSURANCE CORPORATION

I N D E P E N D E N T

B A N K E R

Northwestern Banker, O c to b e r, 1947

Iow a

News

8:00 P. M.—
Musical Program—KRNT
Theater.

Radio

0:30 A. M.—
Musical Program,
Theater.

Cincinnati, Ohio.
KRNT

Radio

8:20 P.M.—
Convention Called to Order
W. H. Brenton

10:00 A. M.—
2. Convention Called to Order
W. H. Brenton

President, Iowa Bankers Associ
ation.

President, Iowa Bankers Associa
tion.
3. Address
Joseph M. Dodge
President, American Bankers Asso
ciation; president, The Detroit
Bank, Detroit, Michigan.

Address
Hon. Harold E. Stassen
“Capitalism in a Post War World.”
0:30 P. M.—
Session Adjourned.

“Constructive Banking.”

Wednesday A. M., October 8th
(Third Day)

10:45 A.M .—
4. Address

8:00 A. M.—
1. Registration.

Hon. Robert A. Taft

United States Senator from Ohio,

YOUR BANK FOR
SOUTHERN IOWA

“Debt and Taxes.”
11:45 A. M.—
5. Receiving Invitations for 1948
Convention.
6. Any New or Unfinished Business.
12:00 Noon—
7. Adjournment of filst Annual Con
vention of the I.B.A.

Hold Bank Dinner
B.
F. Kauffman, chairman of the
board of the Bankers Trust Company,
Des Moines, last month presided at a
banquet celebrating the thirty years
of operation of the institution, and
honoring employes who had been with
the bank for twenty-five years or more.
New members of the 25-Year Club
honored at the dinner were Fred At
kins, vice president; Arthur Erickson,
assistant cashier; Chester Viers, sav
ings department, and Mary Anderson.
Suitably engraved wrist watches were
presented to those honored.
Fred Atkins, who was hospitalized
at the time of the party, was presented
his watch at the hospital by Mr. Kauff
man.

B aseb all Coach
As a hobby, and because he is pro
ficient and likes to do it, H. Lee Hus
ton, vice president and cashier of the
Columbus Junction State Bank, has
been coaching and managing the local
4-H baseball team during the past sea
son. His team won the sIowa 4-H
championship in Iowa, and we under
stand scheduled several games in Illi
nois at the close of the present season.

By keeping constantly in touch with the business
development of Southern Iowa we are able to provide
complete and prompt correspondent service for any
bank in this area.
The service you obtain here is based on the exper
ience gained through 76 years of close personal con
tact with Iowa banks and bankers.

m1 h
V i mi 1 i t ID Ii Ii Ii M„ IIIin TI Ii Il l JtVI
A
U ill I P
OTTUMWA,

To Be M arried

IOWA

OFFI CERS
FRANK VON SCHRADER, Chairm an of Board
MAX VON SCHRADER, President
H. L. POLLARD, V ice President
CLARENCE P. GLENN, V ice President
J. C. BLACKFORD, V ice President
FRANK M. POLLARD, V ice President and Cashier
C. G. MERRILL, V ice President and Tr. Officer
W . C. MILLER, Assistant Cashier
FRED DIMMITT, Assistant Cashier
GEORGE HALLER, Assistant C ashier

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, October, 1947
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Information from L. C. Jorgensen,
cashier of the Citizens State Bank,
Iowa Falls, Iowa, reveals that Miriam
A. Klisart, secretary and teller of the
bank, is engaged to John R. Sullivan,
and will be married some time this
month. Mr. Sullivan is associated with
the Standard Oil Company in Iowa
Falls.

Bankers' Picnic
The third meeting of the Southwest
Iowa Bankers Association was held re
cently at Waubonsie State Park near
Hamburg, Iowa. Bankers from the
counties of Page, Montgomery, Fre
mont and Mills compose the organiza
tion. More than 150 bankers and their
families attended.
The committee in charge of the af
fair was Mark Orr, Sidney; Don Dougan, Hamburg, and Robert H. Henstorf
of Farragut.

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Federal Reserve Bank of St. Louis

We Are Looking
Forward T o
Seeing You
At

the A n n u a l C on v en tion

Iow a

Bankers A ssociation

D es M oines, O cto b er

, /,

W ALNUT AT FOURTH, DES M O INES
•

Frederick M. M orrison, President
W infield W . Scott, Senior V ice President
J. R. A stley, V ice President

Roy E. Huber, V ice President

Edward P. Kautzky, V ice President

F. M. Thom pson, Cashier

Carl W . A ltm an, Asst. Cashier

M e m b e r

F e d e r a l

R ay L. Thom pson, A sst. V ice President
George W . Gill, A sst. Cashier

D e p o s i t

I n s u r a n c e

C o r p o r a t i o n

Northwestern Banker, O c to b e r ! t947

Io w a

N ew s

75th Y e a r
The records show that the Louisa
County National Bank of Columbus
Junction, Iowa, started its seventy-fifth
year on September 15th. The bank
opened in 1872, and many persons in
the community can recall the organ
izers. J. E. Jensen, cashier, says that
one of the original organizers was a
vice president and on the board of
directors when he came with the bank.

Annual Meeting
At the annual meeting of the First
Trust & Savings Bank of Anthon, Iowa,
officers and directors were elected as
follows: E. A. Hoffman, president and

director; Frank C. Gothier, vice presi
dent and director; Homer M. Boyd,
cashier and director, and C. C. Van
Dyke, P. B. Jensen, Fred M. Trecker
and A. W. Petersen, directors.

Elected P resid ent
It W as Tw ins
It was twin girls for Mr. and Mrs.
Stanton H. Jacobson of Randall, Iowa.
Mr. Jacobson is assistant cashier of
the Randall State Bank. The twins
are Martha and Mary. Mrs. Jacobson
was the former Jean Hall, and before
her marriage was employed in the
county auditor’s office at Webster City.
J.
H. Brekken, vice president and
cashier of the Randall State, and Mrs.

M id la n d N a tio n a l B a n k
o f Minneapolis

O f f e r s B e s t W i s h e s to th e
I o w a B a n k e r s A s s o c i a t io n
T T AFFORDS us great pleasure to extend
best wishes to our banking friends across
the line on the occasion of your October Con
vention.
Your help, we feel certain, has contributed
immensely to the agricultural, industrial and
cultural growth of the great state of Iowa.
With all of Iowa, we salute the Iowa Bankers
Association.
During the convention come up and see us
at the Kirkwood Hotel . . .
W. E. Brockman, Vice President
E. W. Engstrom, Assistant Cashier

M idland National Bank
405 Second Avenue South, Minneapolis

M em ber

F ed era l

Northwestern tanker, October, 1947
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Federal Reserve Bank of St. Louis

D e p o sit

Brekken vacationed this year in Wis
consin, where Mr. Brekken says they
“did a little fishing and visiting with
a daughter at Wausau.”

In su ra n ce

C o r p o r a tio n

The Traer, Iowa, First National
Bank directors elected K. P. Moore as
president of the bank to succeed the
late R. J. Morison. Mr. Morison was
head of the institution more than
thirty years, resigning when he moved
to Colorado, but continued in the ca
pacity of honorary president until his
death.

On Bank Board
Scott Ellis, prominent farmer of the
Dallas Center, Iowa, community, has
been elected to the board of directors
of the Dallas County Savings Bank
of Minburn.
Mr. Ellis is a life-long resident of
Dallas county, and is well known over
the entire state for his farm and civic
activities. He owns and operates one
of the largest dairy herds in Iowa, and
has been active in all forward-looking
movements of church and school.
The Minburn bank is owned entirely
by Dallas county residents and has
deposits in excess of $1,600,000. Other
officers are N. P. Black, president; W.
L. Crumley, cashier; M. S. Luellen,
assistant cashier; Cheryl Luellen,
teller; P. H. Goldsberry, director, and
Ernest L. Bever, director.

County M eeting
Banking and all other business in
Appanoose county, or all of Iowa for
that matter, has a close relation to
how well we conserve our soil, was
the thought brought sharply home to
a large gathering of bankers and bank
officials held last month.
The meeting was the regular gather
ing of the South Central Iowa Inter
county Bankers Association. T h e
speaker was Dr. G. M. Browning, head
of the soils research department of the
state of Iowa.
Bankers attended the meeting from
Monroe, Lucas, Wayne and Appanoose
counties. The Centerville banks, in
cluding the Centerville National, First
National and Iowa Trust & Savings,
were hosts to the occasion. A. S. Rob
erts of the First National Bank at
Albia, presided and Sam Mehrhoff,
cashier of the Centerville National,
acted as secretary, and had charge of
the dinner and program.
At the election H. L. Clark, cashier
of the Corydon State Bank, was elected
president of the South Central Group,
and M. T. Grogan, executive vice presi
dent of the National Bank and Trust
Company of Chariton, was elected sec
retary.

Throughout the existence of the Waterloo
Savings Bank we have tried faithfully to
make friendliness the outstanding charac
teristic of this institution. Our customers
tell us that we have succeeded and that
this IS a friendly bank!

Our

This spirit is not the product of a day—
or a year—but the result of 45 years of
broad banking experience where the em
phasis has always been placed on per
sonal attention to the client's problems.

0 5 th

Year

This type of correspondent service is avail
able at all times to bankers who desire a
Waterloo connection. We invite you to
make use of it.

Officers
H. G. N o r t h e y , President
R. W . W a it e , Vice President
C arleton S tas, Vice President
J. J. M iller , Vice Pres, and Cashier
F . R. L a B arre , Asst. Cashier
V. S palding M iller , Asst. Cashier
F orrest L o f to n , Asst. Cashier

W A T E R L O O SAVINGS B A N K

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Federal Reserve Bank of St. Louis

W a te rlo o , Iow a
M em ber F ederal D ep osit Insurance C orporation
M em ber Federal R eserve System

Northwestern Banker, O c to b e r, 1947

T h e E x ecu tiv e t'o m m ittee
fo r th e

toivu
/

Pictured on this and the top

of the oppo site page are the
Des M oines bankers serving
on the Executive Com m ittee

for the 1947 Convention of the
Io w a

Bankers

A sso ciatio n .

Th ese men, appointed by E.
F. Buckley, p resident of the
Des

M oines

A sso ciatio n ,
Des

M oines

C learing

House

rep resen t
C learing

the

House

A sso cia tio n and its affiliates.
y
E. F. B U C K L E Y
Chairman
President, Central N ational Bank

B. F. K A U F F M A N
Chairman o f the Board
Bankers T rust Company

Northwestern Banker, October, 1947

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Federal Reserve Bank of St. Louis

H E R B E R T L. H O R T O N
President
Io w a -D e s M oines N ational Bank

F. M . M O R R IS O N
P resident
V a lle y Bank & T rust Com pany

W I L L I A M A. B R O Q U I S T
President
Iow a State Bank

R O L F E O. W A G N E R
President
Capital C ity State Bank

N. P. B L A C K
Superintendent
Iow a B anking Departm ent

O th er C onvention C om m ittees
T THE left is Frank R. Warden, vice
president of the Central National
bank, who is chairman of the Convention
Entertainment Committee, and at the
right, Edward P. Kautzky, vice president
of the Valley Bank & Trust Company, who
heads the Automobile Committee.
Serving with Mr. Warden on the Enter
tainment Committee is Fred C. Atkins,
vice president and cashier o f the Bankers
Trust Company; Ray G. Miller, vice presirent of the Capital City State Bank;
Harold P. Klein, vice president of the
Iowa-Des Moines National Bank & Trust
Company; and Winfield W. Scott, vice
president o f the Valley Bank & Trust
Company.
Assisting Mr. K autzky on the Automo
bile Committee is Lehman Plummer, vice
president Central National Bank and Trust
Company; and Albert W. Crosson, vice
president Des Moines Bank & Trust Com
pany.

F R A N K R. W A R D E N
Chairman, E ntertainm ent Com m ittee
V ic e President, Central N ational Bank

Farm Credit

Reflecting the increased costs of
producing crops and the availability
of more farm equipment, the volume
of bank credit used by the Iowa farm
ers is currently higher than it was a
year ago, according to C. W. Anderson,
vice president of City State Bank of
Madrid, who represents the Boone
County Bankers Association.
“ However, Iowa farm families are
probably in the strongest financial po

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Federal Reserve Bank of St. Louis

V ic e

sition that they have ever been,” Mr.
Anderson said. “ Less farmers need to
use the bank credit available to them
because continuing high farm incomes
make it possible to finance operations
out of income and when credit is used,
it is retired when crops are sold.”
Reporting on the results of a third
national survey of bank lending made
by the Agricultural Commission of the
American Bankers Association, Mr.
Anderson said that Iowa farmers used

E. P. K A U T Z K Y
Chairman A utom obile Com m ittee
Pres., V a lle y Bank and T rust Company

only a fraction of the bank credit
available to them during 1946. How
ever, the 594 insured commercial banks
which serve agriculture in this state
made 385,421 loans to 141,122 farmers.
These loans aggregated $346,325,000, of
which $144,339,000 remained outstand
ing on January 1, 1947. Banks had at
least $608,675,000, or about twice the
amount in use at any time, available
for additional loans to farmers if the
demand existed.
Northwestern Banker, October, 1947

Y ou W ill S ee Them a !
/tu rn 's H ist A n n u a l C onvention
More Than 100 Bankers from Larg e Banking C enters
A re Planning to A ttend This O utstand ing M eeting in Des Moines
HEN the Iowa Bankers Asso
ciation holds its 61st Annual
Convention in Des Moines on
Monday, Tuesday and Wednesday,
October 6th, 7th, and 8th, officers of

many of the larger banks in Iowa and
other states will be on hand to renew
acquaintances with their many Iowa
banker friends.
The following is a list of those bank

ers who have reported to the N orth
B anker that they plan to be
in Des Moines for the convention:

w ester n

Cedar Rapids
S. E.
Coquillette, chairman of the board;
John T. Hamilton II, president, and
Marvin R. Selden, vice president.
Peoples SaAings Bank:
Paul H.
Huston, vice president, and Ervin F.
Stepanek, cashier.
Merchants National Bank:

Prompt . . . Precise
Correspondent Banking
TIME — with us — is everything.

means exacting promptness in ren
dering a truly helpful service to our

Chicago
American National Bank & Trust
Company: O. P. Decker, vice presi

dent; Charles C. Kuning, vice presi
dent; W. B. Whitman, assistant vice
president, and W. O. Kurtz, Jr., assist
ant cashier.
Central National Bank: A. O. Clave,
A. A. Ellerd, and E. H. Sollenbarger,
vice presidents.
City National Bank & Trust Com
pany: William H. Miller, vice presi

correspondents.

dent.

PRECISION— with us— goes hand in

Continental Illinois National Bank
& Trust Company: Norman B. Shaf

hand with time.
handled

Every item must be

precisely

humanly

possible.
That's why we enjoy so many cordial
correspondent relationships in Iowa,
Nebraska, South Dakota and Minne
sota.

fer, vice president; Arthur J. Frey,
Merle G. Glanville, second vice presi
dents, and Leland C. Parkin.
Drovers National Bank: George A.
Malcolm, president; Dale E. Chamber
lin, vice president; Frank M. Covert,
assistant vice president, and Fred D.
Cummings, assistant cashier..
First National Bank: John J. Anton,
vice president; Verne L. Bartling,
assistant vice president; Leroy F.
Winterhalter, assistant cashier, and
Victor C. Von Meding.
Harris

P H a n ir iiiii

Of Sioux City
C\

Member Federal Deposit Insurance Corporation

Northwestern Banker, October, 1947

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Federal Reserve Bank of St. Louis

Trust

Savings

Bank:

Charles A. Carey, Vincent Yager, vice
presidents, and Roland White.
Live Stock National Bank: David
H. Reimers, president; Alden S. Bagnall, vice president; Rex Van Alstine,
assistant cashier, and J. Merrill Ander
son, representative.
Northern Trust Company: Charles
M. Nelson, vice president; John V.
Haas, Robert E. Hunt, assistant cash
iers, and John B. Rigler.

Clinton
Bruce Town
send, president, and Edgar H. Jorgen
sen, cashier.
City National Bank:

Io w a

Iowa City
Iowa State Bank & Trust Company:

Ben S. Summerwill, president, and
W. W. Summerwill, vice president.

Kansas City
City National Bank & Trust Com
pany: James F. McPherson, vice presi

dent; Tom Collins, publicity director,
and Ewart H. Burch, assistant cashier.
Commerce Trust Company: Rich
ard L. Dunlap, vice president, and B.
M. Lamberson, assistant cashier.
Inter-State National Bank: Charles
H. Griesa, vice president.

John Lauritzen, assistant cashiers,
and Carl Bloom, and E. T. Tanner.
Live Stock National Bank: Henry
C. Karpf, president; Wade R. Martin,
R. H. Kroeger, Paul Hansen, W. Dean
Vogel, and H. H. Echtermeyer, vice
presidents, and Elmer C. Olson, assist
ant cashier.
Omaha National Bank:
Ray R.

Ridge, senior vice president; John A.
Changstrom, vice president, and A.
J. Rhodes, assistant cashier.
Stock Yards National Bank: W. A.
Sawtell, president; A. J. Hallas, John
McCumber, vice presidents; C. A. Masilko, cashier, and P. J. Krogh, repre
sentative.
United States National Bank: Austin

Bank:

RAW MATERIAL

Donald A. Harper, assistant vice presi
dent.

From the teeming corn belt

Milwaukee
First

Wisconsin

National

News

Minneapolis
First National Bank: John J. Malo
ney, and Kenneth T. Martin, assistant
vice presidents.
Marquette National Bank: Russell
L. Stotesbery, president; Lynn Fuller,
executive vice president; Charles C.
Rieger, vice president.
Midland National Bank:
W. E.
Brockman, vice president, and E. W.
Engstrom, assistant cashier.
Northwestern National Bank: Alton
F. Junge, assistant cashier.

Our raw material comes, for the most part, on the hoot
from the fruitful Corn Belt, thanks to the strategic locations
of our packing plants in the heart of this fertile area. An
important service in transforming that raw material, how
ever, is performed by the corn belt banking institutions in
financing, feeding and manufacturing operations before
those meat products are ready for American dinner tables.
Fresh pork and beef have many potentialities. That,
under the Morrell label, they are widely served and en
joyed in the form of hams, bacon, sausage, canned meats
and other food products of distinctly fine quality, is due
to the factors contributed by growers, feeders and bankers,
plus the skill and high regard for superiority which char

New York City
Bankers Trust Company:
Paul
Bonynge, assistant vice president.
Central Hanover Bank & Trust Com
pany: F. M. Hampton, assistant secre

tary.
Chase National Bank: Francis G.
Ross, vice president; Jacque C. Frost,
assistant cashier; Louis Jacoby, Chi
cago representative, and Hugh Kirk
patrick, representative.

acterize Morrell processing methods.
Morrell Pride Meats are not in volume for volume's sake
alone. It lies in perpetuating the Morrell Philosophy of
Business which was defined by the founder more than a
century ago, in these words: Be satisfied with nothing
less than the finest of quality; deal squarely with all, and
your business will enjoy healthful growth, in volume and

Chemical Bank & Trust Company:

Edward C. Newfang, assistant secre
tary.
Continental Bank & Trust Company:

Robert O. Lockton, assistant treasurer.
Guaranty Trust Company: H. Liv
ingston Schwartz, Jr., second vice
president.
Irving Trust Company: Orvil E.
Miles, assistant secretary.
Manufacturers Trust Company: Ray
A. Lockwood, vice president, and C.
F. MacLellan, representative.

in reputation."

Jo h n M o r r ell &
E s t a b l i s h e d in E n g l a n d in 1 8 2 7

Public National Bank & Trust Com
pany: Earl Gafford, vice president.

Co.

• • In A m e r ic a s in c e 1 8 6 5

P a ck in g P la n ts :

O ttum w a, Iow a

• S io u x F alls, S. D. • T op ek a , ICansas

Omaha
C. D. Saun
ders, vice president; E. F. Jepsen,
First National Bank:

Jid you know that this com pany pioneered in putting
Bank Insurance on a scientific basis and fo rcin g

Scarborough & Company

-ate reductions? Ask us about our counseling service.
5TRST N A T I O N A L

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Federal Reserve Bank of St. Louis

BANK

B U I L D IN G

C H IC A G O

Insurance Counselors
3, IL L IN O IS

STATE

to Banks

4325
M nrthu/pclprn

Snnlrpr

O c to b e r .

1947

Iowa News

L. Vickery, assistant vice president,
and Nets L. Sholin, assistant cashier.

Ottumwa
Union Bank & Trust Company: Max

von Schrader, president; Clarence P.
Glenn, cashier; Frank Pollard, assist
ant cashier, and J. C. Blackford, man
ager personal loan department.

South St. Joseph
First St. Joseph Stock Yards Bank:

Thomas J. McCullough, vice president
and cashier.

St. Louis
First National Bank:

Frank Fuchs,

assistant vice president.
Mercantile-Commerce Bank & Trust

Company: Leo D. Kelly, vice presi
dent, and Edward E. Marshall, assist
ant vice president.
Mississippi Valley Trust Company:

M. C. Hook, Jr., assistant cashier.

Sioux City
First National Bank: A. G. Sam,
president, and J. T. Grant, vice presi
dent.
Live Stock National Bank: Carl L.
Fredricksen, president; M. A. Wilson,
vice president, and William Temple.
Security National Bank: Charles R.
Gossett, president; B. M. Wheelock,
vice president, and Charles H. Walcott,
assistant cashier.
Toy National Bank: R. R. Bru-

W e lc o m e to- 2 ) e d

M & m ed ,

Bankers of Iowa
JL he officers and staff of this Bank ex

tend sincere greetings and best wishes to
the Bankers of Iowa, who gather in Des
Moines, October 6th, 7th and 8th, for the
1947 convention of the Iowa Bankers
Association.
We hope you'll drop in to see us when you
come to Des Moines.
If there is anything we can do to make
your convention visit more pleasant,
please feel free to call upon us.
OFFI CERS
ROLFE O. WAGNER, President
RAYMOND G. MILLER, Executive Vice President
J. N. COFFEY, Vice Pres, and Trust Officer
GEO. RADCLIFFE, Cashier
C. ALLEN EVANS, Asst. Vice President
FRED C. SUTTON, Assistant Cashier
FRANK J. TAMSE, Assistant Cashier

C A P IT A L C IT Y
STATE B A N K

bacher, president, and E. E. Erickson,
vice president.

Waterloo
National Bank of Waterloo: Charles

S. McKinstry, president; R. L. Penne,
vice president, and A. J. Burk, cashier.
Waterloo Savings Bank: J. J. Miller,
vice president and cashier; R. W.
Waite, vice president, and Francis R.
LaBarre and V. Spalding Miller,
assistant cashier.

O fficers R e-elected
Officers and directors of Peoples
State Bank, Missouri Valley, Iowa,
were re-elected at the annual meeting
of the stockholders.
D.
A. Schwertley, who assumed the
presidence oy the bank after the death
of Dr. John L. Tamisiea, was renamed
to that position. John A. Kovar was
re-elected vice president and cashier.
D. F. Schwertley was re-elected cash
ier. These officers were also re-elected
directors. Also re-elected directors
were Fred E. Egan and Dr. F. X.
Tamisiea.
Employes in the bank are the Misses
Rosemary Coffman, Marie Antrim and
Faye Ann Shaw.

C. C. Lo wen berg
Christopher C. Lowenberg, wellknown Ottumwa business man and
civic leader for over 30 years, died
recently at his home.
He had been in ill health since Aug
ust of 1941. For the past year he had
been confined to his home.
Mr. Lowenberg was identified with
many phases of civic life in Ottumwa.
He was a director for 20 years of the
First National Bank, which later be
came the First Bank and Trust Com
pany, and then the Fidelity Savings
Bank. He served as president of the
First Bank and Trust Company for
one year.

C. V. A nderson
C. V. Anderson, 76, president of the
State Bank of Lamoni, Iowa, died re
cently of a heart attack.
Mr. Anderson joined the business
life of Lamoni in 1936 when the State
Bank of Lamoni was organized. He
was a director from the beginning and
was named president following the
death of A. W. Fleet.

A ttend s C o n feren ce
M. G. Addicks, former Newton bank
er and Jasper county treasurer, has

tf- e m n d e d

East Locust at FifIh

Des Moines, Iowa

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, October, 1947

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

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

97
been honored as one of the 270 dele
gates to represent American Method
ism at the world gathering of Method
ists in Springfield, Massachusetts, Sep
tember 24th to October 2nd.
Mr. Addicks is now vice president
of the Citizens State Bank at Donnellson, Iowa.
Known as the Ecumenical Methodist
Conference and embodying all branch
es of Methodism on five continents, the
conferences have been held at 10-year
intervals since 1881. The war made
it impossible to hold the 1941 session
scheduled at Oxford, England, so it
was held this year at Springfield.

Io w a D eposits
The total deposits of Iowa’s 557 state
chartered banks—approximately two
years after the end of World War II
—have hit an all-time high of $1,512,304,013 and their resources have
reached the record figure of $1,596,633,023.
Oddly enough it was about the same
length of time after the end of World
War I when deposits and assets for
the period of state banking history
extending up to that date also had
reached record highs.
After 1920 a decline set in until the
all-time low point arrived in 1934.
This situation was pointed out re-

cently by Newton P. Black, superin
tendent of the Iowa department of
banking, in a letter to the executive
officers of all state banks.
His information was based on re
ports of the condition of banks as of
last June 30th and comparable figures
on years dating back to 1891.
“We are making no prediction what
the trend will be from June 30, 1947,”
he said. “Your guess is as good as
ours.
“With deposits in state chartered
banks over $1,500,000,000, the bankers
of Iowa and the department of bank
ing have a tremendous responsibility
to the people of our state.
“ If we can continue to maintain the
present incomparable solidarity of
Iowa’s banking institutions, we should
have no difficulty in meeting changed
conditions.
“ Safety of depositors’ funds is, of
course, our primary objective.”

C ity T re a su re r
New city treasurer of West Des
Moines, Iowa, is Forrest Galbraith,
vice president and cashier of the West
Des Moines State Bank.
He was named by the city council to
succeed Albert Compton, who resigned.
The unexpired term continues until
March.

W AR EH O U SE

M ERCHANTS
M U T U A L

BONDING
COMPANY
Incorporated 1933

Home Office
S A V IN G S & L O A N B U ILD IN G

Des Moines, Iowa
•
This is Iowa’s oldest surety company.
A progressive company with experi
enced, conservative management.
We are proud of our hundred and
fifty bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.
•
E. H. WARNER
Secretary and M anager

W. W. WARNER
Assistant Secretary

RECEIPTS

Help to Carry the Load of Seasonal Inventories
SHORT SELLING SEASON . . . MANUFACTURE IN ADVANCE OF SELLING SEASON . . .
STORING OF RAW MATERIALS . . . all require "EXTRA” CAPITAL
Field Warehouse Receipts issued by WILLIAM H. BANKS WAREHOUSES, INC., covering
seasonal inventories, provide DESIRABLE and SAFE COLLATERAL to BANK LOANS.
If you are not familiar with this service, write for our descriptive book. It contains a re-print
of the Uniform Warehouse Receipts Act and other very valuable information, and we will be
glad to send it to you without obligation on your part.
Our Mr. Coffman and Mr. Fletcher will attend the Iowa-Nebraska Bankers Meeting in Des
Moines, and will be very happy to discuss our service with you in person. Check with them.

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Federal Reserve Bank of St. Louis

Division Offices:
OGDEN, UTAH . . A N G O L A , INDIANA . . . W E SL A C O , TEXAS . . .
FAYETTEVILLE, AK A N SA S . . .

ST. LOUIS, MISSOURI . . . DES MOINES. IO W A

2 0 9 SO. L A S A L L E S T . C H I C A C O . ILL.

J ic U i llnie/u uSr 'Receipt*

¡ÍÍNPU^l S t .

S n id n i*iq THE GAP S rh rc e n

.. BANKING and INDUSTRY
Northwestern Banker, O c to b e r, 1947

98
Advertisem ent

iow n ‘ •fío## o f Honor** Hanks
It is an honor to be listed among the H O N O R R O L L B A N K S. It indicates that the
bank has SURPLUS and U N D IV ID ED PROFITS equal to or greater than its capital
The banks listed on this page are some of the outstanding "Honor Roll” Banks in Iowa.
By careful management and sound banking they have achieved this enviable position.
These banks will be especially glad to handle any collections, special credit reports or
other business in their communities which you may entrust to them. Correspondence is
invited.

TOWN

BANK

Algona............................... Security State Bank.....
...........
Anamosa..... ...................... Citizens Savings Bank................................
Andrew............. .................Andrew Savings Bank ..............................
Auburn..........................
Auburn Savings Bank....... .......................
Audubon............................ First State Bank
Baldwin............................. Baldwin Savings Bank..... ...........................
Bellevue............................. First National Bank......................................
Bennett.............................. Bennett State Bank.......................................
Britt....................................First State Bank...........................................
Burlington................. ...... Burlington Savings Bank.......
Burlington................... ...NationalBank of Burlington...................
Bussey................................State Bank.......................................................
Cantril................................State Savings Bank........................................
Carlisle............. .................riartford-Carlisle Savings Bank
Carroll............................... Commercial Savings Bank..........................
Cedar Rapids...................First Trust and Savings Bank...................
Cedar Rapids................... Merchants National Bank....
Cedar Rapids....................Peoples Savings Bank.................................
Cedar Rapids................... United State Bank......... .............................
Colfax.................................First National Bank..................................
Corning..............................Okey-Vernon National Bank..................
Council Bluffs..................Council Bluffs Savings Bank...................
Council Bluffs................ First National Bank in Council Bluffs
Cromwell.......................... Cromwell State Savings Bank..................
Cumberland......................Cumberland Savings Bank.............. .........
Dallas Center.................. Brenton State Bank.................... ................
Decorah........... ............. Security Trust & Savings Bank...............
Denison.............................. Crawford County Trust & Savings.......
Des Moines.......................Bankers Trust Company.............................
Des Moines.......................Des Moines Bank and Trust Co...............
Des Moines....................... Valley Bank and Trust Co..........................
Dike..................................... Iowa Savings Bank.......................................
Donahue................
.......Donahue Savings B ank............ ..........
Donnellson........................Citizens State Bank.....................................
Marling.............................. Farmers Trust & Savings Bank..............
Estherville........................ Emmet County State Bank.........................
Exira...................................Exchange State Bank...................................
Fairfield..................... .... First National Bank in Fairfield .........
Farley..... ...... .................. Farley State Bank
Farnhamville....................Security Savings Bank..... .........................
Grand Mound..... ........... Union Savings Bank......................................
Grundy Center................ Farmers Savings Bank.................................
Guthrie Center............ Guthrie County State Bank....................
Hampton......
......... First National Bank
............... ........
Hospers.......................... Hospers Savings Bank.................................
Hudson..................
Hudson State Bank......................................
Humboldt.................. .... The First National Bank in Humboldt
Humeston..........................Citizens State Bank......................................
Independence........... ........ Farmers State Savings Bank....................
Independence....................Security State Bank...................................
Iowa City.......................... Iowa State Bank and Trust Co.................
Iowa Falls........................ Citizens State Bank.......................................
Iowa Falls................... ....Iowa Falls State Bank................................
Irwin...................................Farmers Savings Bank...............................
Jewell________ _________ Farmers State Bank....................................
Joice....................................Farmers Savings Bank................... ...........
Northwestern Banker, O cto be r, 1947

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

O FFIC E R

C A P IT A L

...E, A . Schem el.................. . .......... $ 50,000
60.000
......Leo J. W egm an .....................
25,000
......Eber V. F lint......................... ........
25,000
......H. C. Bruns............................ ..........
50,000
......A. A. K ruse...... .................... . .........
..... C. A. H arding............... ...... ..........
25,000
..... Herman -i. K ueter............... ..........
50,000
..... J. G. E n g e l.......... ..................
30,000
50,000
......V. D. K oons.......................... .........
100.000
.. ...W esley H. Sw iler................
......Thomas L. D yer................... ..........
200,000
.... E. G. Doughm an................... ..........
25.000
___ H. D. K oenecke...... ............... ..........
25,000
......G. D. Schooler........................ ..........
50,000
......R. M. M oehm..... .................. .........
50.000
.... Frank J. D vorak...................
100,000
.... John T. Ham ilton I I .....
.........
500,000
....Frank C. W elch ....................
300,000
.... Charles K riz _____ _____ _ ..........
50.000
......Charles M. Stinson. . . ......... .........
50,000
... ..B. P. St. John....................... ____
80,000
..... B. A. G ronstal....................... ..........
300.000
..... R oy Max field.....................
100,000
.... A. Omar Cannon...................
15,000
...J . 0. Stahl.............. ........
.........
25,000
..... Bindley Finch..... ....... .........
100,000
.... R. W. Raster.......................... .........
35,000
.... H. E. Qualheim.....................
100,000
..... F. C. A tkins...... .....................
1, 000.000
..... G. B. Jensen...... .....................
150,000
...Frank M. Thom pson.......... ..........
200,000
..Lee Chandler......................... .........
25,000
___W alter E. Paustian...... ...... ......
30,000
___M. G. A ddicks........................ ..........
50,000
.... W . B. R yan............ ................
20,000
.... W ayne C. Currell............... .........
50,000
.... C. K. ('u llin gs........................ .........
25,000
___Glenn A. Sherman........ ......
100,000
......F. S. F errin g ...... .................. .
25,000
.0. W. M adson....................... ........
25,000
......L. J. Stotesbery..... .......... . .........
25,000
..... A. V. Dieken.........................
30,000
..... M. C. Barnett........................ ........
50,000
..... J. M. B oots........ .......... ........
100,000
..... < . F. Sheel.............................. ..........
25,000
___R. F. Busching.....................
25,000
..... B. B. W a tson .......................... .........
50,000
..... K. J. Lyon ..............................
25,000
..... E. F. S org ................................
100,000
..... John C orcoran........................ .........
50,000
..... Ben S. Sum m erw ill............. .........
150,000
......L. C. Jorgensen................... ..........
50,000
___James L. Rum m el.............. . .........
50,000
..... E. H. K ettler.......................... .........
25,000
..... G. C. R orem ............................ ..........
50,000
K. S. Paulson....................... ..........
25,000

SU R P L U S
PR O FITS
54,000
135,000
39.000
33,000
152,000
53,000
77,000
50,000
155,000
395,000
408,258
28,100
63,000
82,000
138,000
156,000
3,821,000
330,000
167,000
101,400
118,000
666,646
167,868
40,000
30,000
154,000
50.000
295,000
2,000,000

♦

*■

200.000
359,000
49,000
58,000
59,000
27,000
264,000
76,746
151,000
57,259
75,000
61,000
77,500

120,000
143,000
95,000
44,000
250,000
57,621

200,000
60,000
150,900
130,000
103,000
29,600
85,788
35,646

99
Advertisement

hura

"R
ollof

Raaks

It is an honor to be listed among the H O N O R R O L L B A N K S, It indicates that the
bank has SURPLUS and U N D IV ID ED PROFITS equal to or greater than its capital
The banks listed on this page are some of the outstanding “Honor Roll'’ Banks in Iowa.
By careful management and sound banking they have achieved this enviable position.
These banks will be especially glad to handle any collections, special credit reports or
other business in their communities which you may entrust to them. Correspondence is
invited.

TOWN

BANK

Keokuk ........................... Security State Bank............ ...................
Keota............ .......... .......... Security State Bank ...... ..................
Kingsley............ ......... Oltmann & Phelps Bank........
Lake City................ .... Lake City State Bank................. .........
Lansing........... ................... Kerndt Bros. Savings Bank................
Leighton............................ Farmers Savings Bank..................
Lisbon.................................Lisbon Bank & Trust Co........................
Lowden............ .................. American Trust & Savings Bank.....
Luverne..............................Farmers State Bank................ ...............
McClelland.............. .......McClelland Savings Bank..................
Madrid................................City State Bank......................................
Manchester....................... Farmers & Merchants Savings Bank.
Marshalltown.................. Security Savings Bank......................
Mason City........................United Home Bank & Trust Co..........
Maynard............................ Maynard Savings Bank.......................
Missouri Valley......... ..First National Bank......... ....... ...........
Mitchellville..................... Farmers Savings Bank.......................
Mt. Vernon....................... Mt. Vernon Bank and Trust Co..........
Muscatine.......................... Muscatine Bank and Trust Co..........
Moville................................First Trust and Savings B ank..........
Nevada............................... Nevada National Bank .....................
Newton...............................Jasper County Savings Bank..............
Newton.............................. Newton National Bank.......................
Onslow.............................. Onslow Savings Bank............................
Orange City..................... Northwestern State Bank....................
Oskaloosa..........................Mahaska State Bank................................
Ottumwa............................Union Bank & Trust Co..........................
Pella................................ Marion County State Bank ...............
Postville.............................Postville State Bank...............................
Prairie City.....................First National Bank................................
Prairie City..................... State Bank of Prairie City................
Randal]............ ............... Randall State Bank.................................
Red Oak............................ Houghton State Bank............................
Sac City............................ Citizens
Savings Bank.....................
Shelby................................ Farmers
Savings Bank.....................
Shenandoah.................... Security Trust & Savings Bank_____
Sigourney.......................... Keokuk County State Bank................
Sioux Center................... First National Bank..........................
Sioux City...................... First National Bank...............
Sioux City........................Woodbury County Savings
Bank.
State Center....................Central State Bank.................... ...........
Stratford...........................Farmers Savings Bank ........... .......
Strawberry Point...........Union Bank and Trust Co...................
Teeds Grove.....................feeds Grove Savings Bank...................
Terril................................. State Bank of Terril.....................
Toledo................................ National Bank of Toledo..............
Union................................. Union-Whitten State Savings Bank
Ute..................................... Ute State Bank...............................
Villisca.............................. Nodaway Valley National Bank.........
Waterloo............................ National Bank of Waterloo ................
Webster City................ First State Bank..........................
Wesley...............................Exchange State Bank...........................
West Burlington............West Burlington Savings
Bank
West Branch................... First State Bank...........................
West Union..................... The First National Bank.........
Wever.................................Farmers Savings Bank.......................
Winfield............. .............. Farmers National Bank........... ........
Winterset..........................Union State Bank...........................
Wyoming.......................... Citizens State Bank...................... ........

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

OFFICER
Joe H. G ronstal.... .
Harold A. Stowell...
.H. Floyd Phelps..... .
R. 0 . M oll....................
G. M. K erndt...........
Harold A . DeBruin...
H. W . Sizer...............
.W . H. W itte...............
John A. N elson.......
L. W . Barnes.............
L. M. Lanning...........
W. W . M atthew s....
W ill A. Lane.............
R. A. P otter.............
L. H. Buenneke.........
F. C. Burke...............
R. P. Blake.................
D. U. Van M etre.....
F. W. A llen ...............
Chas. W . L ogan .... .
_L. R. Bassett.............
.A. E. H indorff..... .
.0 . L. K arsten...........
George H. Paulsen...
,H. R ow enhorst.........
.Russell S. H ow ard...
,C. P. Glenn.............. .
K. H. Bean...............
,W . A. K neeland......
J. Van Steenbergen.
John R. B uckley.......
,J. H. Brekken...........
_H. C. H oughton.........
J. P. Jones.................
.L. O. Stoker...............
. E. C. Fishbaugh......
. B. D. H elscher.........
P. B. M ouw ...............
. Fritz Fritzson ........
_A. R. M iller..............
,E. S. Pitm an.............
.R obert D. D ixon ___
,J. J. M atthew s.........
.John Thomsen, Jr...
_M. E. H ess.................
.A sa Thom as___ ____
P. M. W a lter............
E. W. N un.................
J. L. W heeler........ .
.A. J. Burk................
Lorenz A. H orn........
.John Hutchison .....
,L. R oy T rout............
L. C. Rum m ells........
_C. W . G rim es..........
.Loren I. P eel.........
_T. T. W arren ............
.11. L. Pauli................
Ralph L. Orth..........

CAPITAL
200,000
25.000
50.000
25.000
30.000
25.000
50.000
35.000
25.000

20.000
25.000
75.000

100,000

SURPLUS
PROFITS
225.000
35.000
56,677
53,209
82.000
38.000

66.000
57,479
39.000
26.000
70.000
135.000
140.000

200,000

210.000

25.000
50.000
25.000
50.000
125.000
50.000
54.000
200.000
100,000

46.000
70.000
35.000
98.000
523,653
79.000
138.000
382.000
137,376
50.000
75.000
238.000
808,182

20.000
65.000
125.000
300.000
25.000
50.000
25.000
25.000
25.000
100.000
40.000
25.000
60.000
50.000
50.000
400.000
100.000
60.000

20,000
40.000
25.000
25.000
80.000
45.000
25.000
50.000
250.000
100.000
30.000
50.000
25.000
50.000
35.000
50.000
50.000
25.000

68.000
84,115
45.000
28.000
45.000
194.000
85.000
85.000
195.000
92.000
104.000
581.000
407.000
122,578
49,513

100.000
35.000
33.000
137.000
65.000
30.000
90.000
744.000
137.000
35.000
64.000

112.000
101,000
39.000
59.000
106,000
90.000

Northwestern Banker, O c to b e r , 1947

Hankers 1*1ai/ HasebaU

Home Loan M eeting
Directors of the Federal Home Loan
Bank of Des Moines held their quar
terly board meeting recently.
Principal action of the board was to
approve $3,480,800 of advances to mem
ber savings and loan associations in
Iowa and four other midwestern states.
This brings the total to $164,432,000 ad
vanced by the bank since its organi
zation in 1932. Outstanding loans
amount to $23,372,000.
Robert J. Richardson, president of
the bank, reported that the current
volume of home mortgage financing by
all types of Iowa lenders is running
only 5 per cent below the peak level
of a year ago.
He said also that the greatest de
mand now is for loans to finance pur
chase of existing houses, and that this
accounts for 60 per cent of the volume.
Loans for financing new home con
struction represent less than 20 per
cent of the total, he added.

W in Float Prize

WELL-KNOWN in Micldlewestern banking circles are two members of the Drake
University Baseball Team of 1907, pictured above. Second from left in the top row
is Raymond B. Clift, president, Alden State Bank, Alden, Iowa. Fourth from left in
the same row is Norman Shaffer, vice president of the Continental Illinois National
Bank and Trust Company o f Chicago. Clift played third base while Shaffer held down
an outfielder’ s position.
The 1907 team opened the season with a win over Simpson College, trounced Iowa
Wesleyan, split games with Iowa State College, and was nosed out by Iowa State
Teachers.
Team members and present addresses are: Top Row : Frank N. Jacks, insurance
adjustor, Kansas City, M o.; Raymond Clift; Byron Wilder, funeral director, Ft. Dodge,
Iowa; Norman Shaffer; the late Charles Pell, and Dr. Neil Van Meter, physician, M on
rovia, California.
Middle Row : Dr. Earl Bush, physician, Ames; John R. Canine; Ralph E. Maricle,
Everson, Wash.; James Kenyon, attorney, Waterloo, Iowa. Front Row: Dr. Charles
Franklin, deceased; H. J. Morgan, Newton, Iowa, and Robert L. Finch, Columbus, Ohio,
public relations director for National Association of Professional Baseball Leagues.

Bank Stationery Headquarters

In the motor-drawn division of the
parade at the All Veterans’ Celebra
tion at Garner, Iowa, the entry of the
Hancock County National Bank was
awarded second place.
The beauty of the float was en
hanced by the appearance of four girls
on the long, flowered float. Helen
Jean Olson rode at the front of the
float, with Betty Borchers and Dorothy
Young standing about in the middle,
with Winnie Jean Simmons swinging
in the springtime setting toward the
back portion.

New Officer
Cliff Avery started recently at the
First National Bank of Oelwein, Iowa,
as public relations director. This is
a new department in the bank. Avery

Nearly 50 Y e a r s . . .

We specialize in printing municipal and other special bonds.
Ask about CERCLA all-metal binding for customers' checks.
Write, phone or call for samples and prices.

m Customer Checks
• Pocket Checks
• Counter Checks
• Letterheads and Envelopes
• Bank Drafts and Notes
• Statement Sheets
• Ledger Sheets
• Deposit Slips
• Statement Folders
• Pass Books
• Check Covers

Northwestern Banker, October, 1947

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Federal Reserve Bank of St. Louis

A MERICAN Lithographing and Printing Co.

Third and Keosauqua Way

DES MOINES

Phone 4-8146

101

Iowa Bankers
TO THE

Sixty-first Annual Convention
OF

IOWA BANKERS ASSOCIATION
October 6 , 7 , 8 , 1947
Your many orders for I. B. A. Standard Forms are very much
appreciated. We stock the following forms for immediate ship
ment :
Personal Loan Notes

Real Estate Mortgages

FORMS NOS. 42, 43, 44

FORMS NOS. 6 A N D '2 8

Chattel Mortgage

FO R M NO. 45

F O R M NO. 29

(Short form covering automobiles and other collateral
taken to secure personal loans)

Extension of Chattel or Real Estate Mortgage
F O R M NO. 36

Collateral Note
FO R M NO. 12

Satisfaction of Real Estate Mortgage by
Corporation

Collateral Receipt and Agreem ent
FO R M NO. 39

FO R M NO. 49

Conditional Sale Contracts
Agreem ent to Subordinate Landlord’s Lien

FORMS NOS. 26 A N D 60

FO RM NO. 55

Extension of T im e for Payment
FO RM NO. 41

Safe Deposit B ox Lease and Receipt
FO R M NO. 7

(Supplemental to Form No. 26)

Samples and prices sent promptly on request

a l l a c e -H o m e s t e a d
P R IN T IN G

------------------------- —

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•

B IN D IN G

................ 1912 Grand Avenue

■.Printers of the

Com pany
•

E N G R A V IN G
DES MOINES 5, IOWA

o r th w ester n

a n k er

for More than Thirty-eight Years
Northwestern Banker, O cto be r, 1947

102

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came from Dubuque five years ago
and was associated with the Interstate
Power Company as district chief clerk.
Following his work at Interstate he
went with Midland Manufacturing
Company as auditor. Since July 1st
he has been at St. Paul with the Na
tional Products Company as auditor
and office manager.
In his new position Avery will work
in Oelwein and the surrounding com
munity.

S i o u x

C i t y

e w s

Toy National
Vice President and Trust Officer E.
A. Hoffman lost his wife Fay in a fatal
automobile accident recently.
A. G. Kahn, field man of the farm
management department of the bank,
lost his wife, Lillie, by death after a
long illness.

Statement of the

IOWA STATE BANK & TRUST COMPANY
Iowa City, Iowa

June 30, 1947
RESOURCES
Cash and Due from Banks.................................................................. $2,459,916.07
U. S. Bonds ............................................................................................. 5,475,596.88
Other Bonds an d Securities .............................................................
89,692.30
CASH OR ITS EQUIVALENT ..............................................................................................$ 8,025,205.25
Loans and Discounts .................................................................................................... 2,887,727.34
Overdrafts .........................................................................................................................
128.64
Banking House .................................................................................................................
50,000.00
Furniture and Fixtures ................................................................................................
25,000.00

E. E. Erickson has returned from
California where he vacationed for a
month with his wife and daughter.
J. William Van Dyke caught a few
fish at Pine Beach Lodge at Gull Lake,
Minnesota, where he spent a two
weeks’ vacation.

Live Stock National
Miss Dorothy Ann Logan, daughter
of Mr. and Mrs. Charles W. Logan of
Moville, and Robert Paul Schenk, son
of Mr. and Mrs. W. C. Schenk, were
married recently at Moville.
The
bride is a student at the Iowa State
College and a member of Pi Beta Phi
sorority. Mr. Schenk graduated from
the University of South Dakota at
Vermillion where he was a student
in accounting and taxation. He will
attend the Iowa State College at Ames
until his graduation in 1948. He be
longs to the Phi Gamma Delta fra
ternity. He is the three times golf
champion of the Sioux City Boat Club,
1941, 1946 and 1947. The couple are
planning to take a wedding trip to
Minnesota Lakes. They will make
their home in Sioux City after grad
uating from Ames.

$10,988,061.23

Morningside Savings
Kermit Scheibe recently spent a

week in Minnesota, catching fish.

LIABILITIES
Capital Stock .............................................................................................................................
150,000.00
Surplus an d U ndivided Profits...........................................................................................
154,419.35
Deposits .............
10,683,641.88
State Treasurer Fuel Tax Fund.........................................................................................
NONE
$10,988,061.23

O F F IC E R S
B un S. S u m m e r w i l l , President
W. W . S u m m e r w i l l , V ice President
M. B . G u t h r i e , Cashier

W . F. S c h m i d t , Ass’t Cashier
S c h m i d t , Ass’t Cashier
M. E. T a y l o r , A uditor

Ja s. H .

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Backed by years of experience, the First
Trust And Savings Bank has complete and
special collection facilities for the prompt
handling of all items in our vicinity.
Send us your items for special service.

FIRST TRUST And SAVINGS BANK
Davenport, Iowa
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, O cto be r, 1947

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

Security National
The Sioux City Chapter A.I.K. has
extended an invitation to all of' the
banks in Woodbury, Winona, and
Plymouth counties to join the Sioux
City Chapter and participate in the
Forum dinner meetings, of which six
are held each year.
This invitation includes the banks in
South Sioux and numbers in all about
30 banks.
Members of the outlying banks will
be eligible to office in the Sioux City
Chapter and it is intended that they
attend the classes and participate in
the discussions.
The last meeting of the Sioux City
Chapter was held September 8th. Offi
cers are D. W. Jurgemeyer, president;
W. L. Buck, vice president; H. M.
Erickson, secretary-treasurer; Anne
Deuschle, honorary vice president,
women’s chairman.
Speaker at the meeting was S. J.
Kryzsko of Winona, Minnesota, execu
tive vice president of the Winona Na
tional and Savings Bank. The sub
ject of his talk was “ Selling A.I.B.” He
is a past councilman of the A.I.B. ana
now regional area vice president of
A.B.A.
The next meeting of the Sioux City
Chapter A.I.B. will be October 6th.

Iowa News
Three members of the Sioux City
Chapter A.I.B. attended the regional
A.I.B. meeting at Duluth, October 2nd.
Those who attended were Anne
Deuschle, Security Bank, Conrad
Aaronson, Toy Bank, and D. W. Jurgemeyer, Security National Bank.

First National
Kenneth J. Shannon has been elec

ted assistant cashier at the First Na
tional Bank to succeed Robert E.
Gleeson, formerly in charge of the
bank’s installment loan department.
Mr. Shannon was connected with the
national banking department for 10
years with headquarters in Sioux City.
A native of Grand Forks, North Da
kota, he is a graduate of the Univer
sity of North Dakota. He served four
years in the finance department of the
army during the war and held the
rank of captain at his discharge.

came to power, and every cencept of
freedom was perverted and violated.
The rallying cry of Hitler, it should
be remembered, was liberty and de
mocracy. Its practical result was the
concentration camp.
The only safeguard a free people
can have is a government of limited
powers, which is never permitted to
dominate the economic life of the na
tion. Once government decides who
shall work and who shall not, once it
controls all the purse strings, once it
becomes a mass employer, the end of

103

individual freedom is in sight. Most
of Europe is now a miserable example
of that fact.

N ew Booklet
Time-saving ideas and operating pro
cedures of proven value to banks have
been brought together in a new book
let, “Aids and Suggestions for Improv
ing Bank Operations,” which is being
distributed by the Bank Management
Commission of the American Bankers
Association to all A.B.A. members.
E. V. Krick, senior vice president

P rinciples Remain
Clement Attlee, the head of Britain’s
Labor government, recently expressed
concern over the attitude of some selfdescribed liberals who seem willing to
limit and perhaps abrogate individual
liberties if that will help them attain
their economic and ideological ends.
Mr. Attlee intimated that left-wingers
of this stripe can be found in the ranks
of his Labor Party, and warned that
every precaution must be taken to
protect basic freedoms in a time of
great economic and social change.
The Prime Minister is to be con
gratulated on this courageous stand.
But what he did not say is that the
creation of super-government, such as
England is on the verge of adopting,
which dominates every phase of a na
tion’s life, inevitably paves the way
for the destruction of liberty and op
pression of the people. The British
Labor government is itself a case in
point. No one believes that Mr. Attlee
or his immediate staff seek to break
down the freedoms which Britons
earned through bloody centuries They
are sincere believers in the rights of
the individual. But the principles up
on which the Labor government’s
main policies are built are a direct
threat to those rights and freedoms.
The enormous powers which the gov
ernment has taken for itself, if exerted
by officials with a totalitarian mental
ity, could be used to destroy repre
sentative government, freedom of
press and speech—all free enterprise
and result in the creation of dictator
ship.
Men pass, but principles remain.
The Russian revolution was fought in
the name of liberty, and the works of
Lenin, the leader, constantly affirm
the need for freedom. But other men

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Federal Reserve Bank of St. Louis

\I ISER eduction
0

f o r Offices, Schools,
Churches, Restaurants,
and Public Buildings
Wherever people are occupied, the need for
acoustical correction and noise reduction becomes
apparent.
Disturbing noise reduces efficiency, lowers
morale, increases absenteeism and impairs health.
All of which is reflected in production costs.
GOLD BOND ACOUSTIFIBRE installations will
remove these obstacles, completely and perma
nently—at a surprisingly low cost.
Write, wire or telephone for complete information.
Prompt service anywhere in Iowa.
TELEPHONE 3-4241

Over 20 Years of Service to Des Moines
and All Iowa

Northwestern Banker, O c to b e r, 1947

104

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N e w s

and cashier of the American Trust
Company, San Francisco, California,
and chairman of the Bank Manage
ment Commission, says in a foreword:
“This booklet has been prepared with
the one purpose in mind of accumulat
ing in one place many of the operating
procedures now in use by various
banks throughout the country which
have proven themselves of real value.
“ It is recognized,” Mr. Krick says,
“that some or all of these suggestions
have already been adopted by some
banks, but it is believed that the mate
rial presented in this booklet will be

of value to most banks throughout the cleus of this compilation in connection
country.”
with appearances before group meet
Subjects discussed in the new pub ings of the Wisconsin Bankers Asso
lication have been arranged according ciation. The text was considerably
to bank department or function. The enlarged by suggestions from many
“aids and suggestions” are grouped banks throughout the country.
under nine headings: General, tellers,
A. K. Davis, senior vice president of
proof and transit, bookkeeping, anal the Wachovia Bank and Trust Com
ysis, loans, drafts, savings and safe pany, Winstom-Salem, North Carolina,
deposit. A complete index provides and Sidney M. Price, cashier of the
for ready reference.
First National Bank, Malden, Massa
O.
B. Lovell, comptroller of the First chusetts, assisted Mr. Lovell in pre
National Bank, Madison, Wisconsin, is paring the booklet.
chairman of the committee which pre
pared the booklet. He made the nu Robert M orris Election

I OWA STATE BANK
Des Moines, Iowa

Our constant endeavor is to render such
service that our customers are willing to
recommend this bank to their friends.
Out-of-totvn bankers are always welcome.

G R O W IN G BY SER V IN G
Total Deposits June 30, 1947..................................... $6,015,620.00
Six Years Old A p r il 16, 1947
One of Iow a’s Most Progressive Banks

DIRECTORS
W m . A . Broquist
George O’Dea

Geo. H. B org

H ugh N. Gallagher
A . E. Sargent

Member Federal D eposit Insurance Corporation

THE PRINTED MESSAGE
The Printed M essage today is more
powerful than ever before as a means
of creating interest and insuring ac
tion.

Paper is the primary basis of

such messages, and for better print
ing papers, consult this firm.
★

NEW HOUSE PAPER COMPANY
“ Better Printing Papers”
Minneapolis

St. Paul

Banker, O c to b e r, 1947
Digitized for Northwestern
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Federal Reserve Bank of St. Louis

Des Moines

Moline

Dubuque

The Robert Morris Associates, a na
tional organization of bank credit men,
held its annual meeting in the Central
Office, Philadelphia, last month. The
following officers and directors were
elected for the ensuing year:
President, Arthur L. Moler, vice
president, The Fifth Third Union
Trust Company, Cincinnati, Ohio.
First vice president, Walter L. Rehfeld, vice president, Mercantile-Com
merce Bank & Trust Company, St.
Louis, Missouri.
Second vice president, Milton J.
Drake, vice president, The Detroit
Bank, Detroit, Michigan.
Directors for period expiring 1949:
V.
K. Bowman, vice president, Fed
eral Reserve Bank, Atlanta, Georgia;
Robert C. DeRosset, vice president,
Seaboard Citizens National Bank, Nor
folk, Virginia; S. Allen Pippitt, second
vice president, Chase National Bank,
New York, New York; H. T. Riedeman,
vice president, Industrial National
Bank, Chicago, Illinois; Harold E. J.
Smith, assistant vice president, Fed
eral Reserve Bank, Cleveland, Ohio;
and Stanley B. Trott, vice president,
Maryland Trust Company, Baltimore,
Maryland.
The continuing directors are:
Gerald F. Dewhirst, vice president,
National Bank of Detroit, Detroit,
Michigan; Frank J. Hart, manager,
credit department and assistant vice
president, American Trust Company,
San Francisco, California; James H.
Moore, vice president, Omaha National
Bank, Omaha, Nebraska; Charles F.
Nagel, assistant vice president, Provi
dent Trust Company, Philadelphia,
Pennsylvania; Arthur L. Peters, vice
president, First National Bank, St.
Paul, Minnesota; and Harry F. Schieman, credit manager, Chemical Bank
& Trust Company, New York, New
York.

Publishes Guide
With government control of consum
er credit due to end on November 1st
under the provisions of the resolution
adopted by Congress just before it ad
journed, fixing that date for the termi-

Io w a

nation of the Federal Reserve Board
Regulation W, the Consumer Credit
Committee of the American Bankers
Association has prepared and will send
out to all A.B.A. member banks a
schedule of down payments and ma
turities for different classes of instal
ment loans which it is offering to the
banks as a guide to assist them in
setting their own terms. Regulation
W was put into force in September,
1941, by the Federal Reserve Board
under White House Executive Order
No. 8843. The resolution adopted by
the two houses of Congress provided
that the board of governors of the
Federal Reserve System shall not ex
ercise any consumer credit controls
after November 1, 1947, except in the
event of war or other national emer
gency.
The American Bankers Association
Consumer Credit Committee states
that its schedule is offered only as a
guide, on the basis of economic condi
tions now existing, in the interest of
keeping instalment lending sound.

if engineers and pilots craned necks at
scenery—feminine or otherwise—ar
gued with wives, necked with the girl
friend or were under the influence of
alcohol, while on duty.
Yet the motorist constantly commits
these driving sins, while airily pilot
ing his passengers without the guid
ance of steel rails, and through traffic
a hundred times as dense as that of
the railroads and the air lanes.
A probable 24,000 lives could be
saved each year, the insurance com
pany estimates, if all motorists could
be convinced that piloting an automo
bile safely is a job worthy of their
best intelligence on a full-time basis.

N ew s

105

Brenton Sells
The Dearborn Motors Corporation,
Detroit, Michigan, national marketing
organization for the Ford tractor and
Dearborn farm equipment, has pur
chased Wood Brothers, Inc., of Des
Moines.
Announcement of the sale was made
by Frank R. Pierce, president of Dear
born Motors Corporation, and W.
Harold Brenton, president of Wood
Brothers, Inc.
Virtually all of the stock in Wood
Brothers, Inc., was owned by Brenton
and Neil T. Chadderdon, vice presi
dent and general manager of Wood
Brothers, Inc. Mr. Chadderdon will

S a fe r to Fly
It is over four times as dangerous
to ride in your own automobile as to
travel by passenger plane, according
to fatality statistics assembled by
Northwestern National Life Insurance
Company. Passenger fatalities on do
mestic airlines over the past four years
have averaged 1.71 per hundred mil
lion passenger miles, against a rate of
eight per hundred million passenger
miles for occupants of motor vehicles
in the same period, the figures show.
When you mutter “ Moron!” at the
driver who just missed sideswiping
your car, you may be temporarily over
rating him, the insurance company’s
report says. The vast majority of our
ghastly annual toll of automobile acci
dents occur when drivers are devoting
only part of their intelligence to driv
ing. The moron rates at from 50 to
70 per cent of average human intelli
gence, the imbecile level is between
25 and 50 per cent of average, and the
idiot rates below 25 per cent.
Thus, the report points out, when
the driver of average intelligence puts
from a quarter to one-half of his mind
on his driving, and devotes one-half to
three-quarters of his brain to conver
sation, scolding the children, listening
to a quiz program, or admiring scen
ery, the hazards are about the same
as if a moron or submoron were doing
his very best at the wheel. An average
mind fogged by alcohol may have its
driving capabilities actually at the im
becile level.
The splendid safety records of the
railroads and the airlines would take
a terrific nose dive, the report suggests,

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Federal Reserve Bank of St. Louis

DS UP!)
A n d

I PRODUCES
HEAVY
YIELDS
Pioneer hybrid corn comes through
with heavy yields . . . resists crop
ravaging storms and insects . . .
develops long, strong, fibrous roots
. . . exceptionally rigid, lodging-resist
ant stalks. Order your Pioneer now.

Thanks to the Banks
The producers of Pioneer thank the many
midwest banks which help finance each
year’s crop of Pioneer hybrid seed corn.

PIONEER HI-BRED CORN CO.
DES MOINES 9, IOWA

GARST & TH O M A S HYBRID CORN CO.
COON RAPIDS, IOWA
Northwestern Banker. October, 1947

106

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remain in active management of the
company.
In February, 1945, Brenton and
Chadderdon purchased a controlling in
terest in the company. Brenton be
came president and Chadderdon, vice
president, secretary and general man
ager. F. J. Wood, one of the founders
of the company, retired at that time.
Mr. Brenton holds controlling inter
est in a number of banks throughout
Iowa, and is president of the Iowa
Bankers Association.

On the C over
(Joseph M. Dodge)

Joseph Morrell Dodge, president of
the Detroit Bank, Detroit, Michigan,
is well qualified to assume the duties
of the American Bankers Association
presidency. He is thoroughly acquain
ted with the many problems that face
not only bankers in their own busi
ness, but the national and world-wide
problems that confront all business
men. All during the war he served in
one capacity after another under
presidential request. His knowledge
of foreign problems is matched by his
understanding of business operations
here at home.
In advancing to the presidency of
the A.B.A., he succeeds C. W. Bailey,

president of the First National Bank
of Clarksville, Tennessee. During the
past year he served the Association as
vice president, in 1939-40 was a mem
ber of the executive council and has
been a member of the Postwar Small
Business Credit Commission.

Finish School
Two Iowa bankers, Frank M. Pol
lard, vice president and cashier of the
Union Bank and Trust Company of
Ottumwa, and Roland H. Tornblom,
assistant cashier of the City National
Bank of Council Bluffs, received their
diplomas from the A.B.A. Mortgage
Officers’ Training School which was
held recently at the University of Illi
nois at Champaign.
They report that it was excellent
training and that they very much en
joyed the school. There were 53 in
their class and they lived in the Beta
House during their two weeks of in
tensive training.

Marcellus, Des Moines investment
banker.
Mr. Marcellus is an experienced in
vestment banker and in addition was
for a number of years in commercial
banking. He was a partner in the
former McGuire-Welch Company and
later was connected with the Kansas
City Branch of the Treasury Depart
ment. More recently he has been con
nected with Wheelock and Cummins,
Des Moines investment firm.
At the same time Mr. Clements an
nounced that he has moved into new
and larger quarters at 601 Insurance
Exchange Building, Des Moines. These
expansion activities are in line with
the policy of the Central Republic
Company to make major offices out of
branches in areas such as Iowa in
order to give banks and other financial
institutions the very best possible
service on bonds and securities.
Furthermore, the Iowa office will
open a special municipal department
in the near future.

investm ent Firm Expanding

O p en s Office

H. R. Clements, resident manager
at Des Moines for the Central Repub
lic Company of Chicago, well-known
securities firm, has announced the ad
dition to the Iowa staff of Charles

The Urbana Savings Bank, Urbana,
Iowa, has been given authority to
open an office at Brandon, Iowa. It
has been reported that they opened
for business early last month.

J ----------------------------------- V
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Tel. 4-0106

DES MOINES 9, IOWA

S _____ _________

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P L ANT

C o r n e r (6th) L o c u s t

►

Iowa News
The articles of incorporation were
amended to increase the common cap
ital stock from $25,000 to $40,000.

D irector Announced
Election of Edgar F. Zelle of Minne
apolis, president of the Jefferson
Transportation Company, as a director
of First Bank Stock Corporation, was
announced by Augustus H. Kennedy,
president, following a meeting of the
corporation’s board of directors.
Born in Illinois, Mr. Zelle spent his
boyhood at New Ulm, Minnesota, and
was graduated from the University of
Minnesota in 1913. Two years later
he established his own business in
Minneapolis, the Motor Truck Service
Company, which firm he still heads in
addition to his other business respon
sibilities.
Since 1937, Mr. Zelle has served as a
director of First National Bank of
Minneapolis, one of First Bank Corpo
ration’s affiliates.
Active in civic and business affairs
of the Twin Cities, Mr. Zelle also is a
director of the Northwestern Fire &
Marine Insurance Company, the Russell-Miller Milling Company, and the
Farmers and Mechanics Savings Bank
of Minneapolis. In addition he is serv
ing as trustee of the Wisconsin Cen
tral Railway Company.

The bulletin gives an analysis of
the gold and foreign exchange held by
16 Latin American countries, showing
peak reserves and present reserves. It
also analyzes credit terms now ex
tended to Latin American countries
and summarizes the latest foreign ex
change regulations of Brazil, Chile,
China, Columbia, Ecuador, Italy, Peru,
Sweden and Uruguay.
In spite of the tightening of foreign
trade conditions, A. M. Strong, vice
president of the bank, points out that
the need for U. S. raw materials, agri
cultural products, machines and manu
factured goods is stiff as acute now as

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Federal Reserve Bank of St. Louis

at the end of the war, and that this
need will continue for years to come.
“The nations of the world are en
deavoring to find the means with
which to finance their enormous pur
chases of goods and services in this
country,” he says. “ Self-preservation
will prompt them to find a practical
solution.”

Dividend
At a recent meeting of the board of
directors of The Northern Trust Com
pany, Chicago, the regular quarterly
dividend of 414 per cent was declared,
payable October 1, 1947, to stockholders

REGARDS and BEST WISHES
to the

BANKERS

IOWA

for a

SUCCESSFUL CONVENTION
C. N. B. Headquarters will be at the
HOTEL FORT DES MOINES
Hope to see you there!
Pioneers in Special Service Banking

C re d it Su rvey
An analysis of credit conditions in
Latin America and a survey of the
latest trade regulations in foreign
countries appears in the September
Foreign Trade Bulletin, published
last month by the American National
Bank and Trust Company of Chicago.
The bulletin indicates that credit
conditions in Latin America are be
coming less favorable and that in a
majority of Latin American countries
prompt collections now represent only
between 32 per cent to 70 per cent of
total items transmitted. Collections
are best in Panama, Paraguay, Cuba.
Guatemala, and the Dominican Repub
lic, where over 75 per cent of the col
lections are prompt; and poorest in
Costa Rica, where 41 per cent of all
items are over 90 days slow.
The buffeting also quotes statistics
published by the Federal . Reserve
Bank of New York showing the ratio
of confirmed letters of credit to drafts.
In Argentina, for example, there were
about $144.6 million in outstanding
confirmed letters of credit at the end
of July, as compared with only $12,600,000 in drafts. In Mexico there were
$28,400,000 in letters of credit as
against $5,400,000 in drafts. In all
Latin American countries outstanding
letters of credit totaled $295.5 million
as against $112.5 million in drafts.

107

Central N
IN

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Northwestern tanker, October, 1947

108

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of record at the close of business re
cently, the transfer books to be closed
at 2 o’clock p. m., September 16, 1947,
and opened at 9 o’clock a. m., Septem
ber 17, 1947.

deposits of $137,029,000,000 at the be
ginning of the year. Most of this de
cline was in United States government
deposits. At the middle of 1947, these
deposits were $1,360,000,000, less than
half the amount at the end of 1946.
Total
deposits of individuals, partner
Now Vice President
N.
Baxter Jackson, chairman of the ships, and corporations amounted to
board of the Chemical Safe Deposit $111,714,000,000 at the end of June, a
Company, announces that Miss Fran decrease of $950,000,000 or 1 per cent,
ces M. Boos, formerly secretary and during the first half of 1947. This re
assistant treasurer, has been appointed duction was accompanied by some
vice president. She will continue her shift from demand to time deposits.
In the first half of the year demand
duties as secretary of the company.
deposits declined $1,669,000,000, while
time deposits rose $719,000,000. Depos
D eposit Report
its of states and political subdivisions
“Total deposits in all insured com rose 10 per cent to $7,268,000,000 on
mercial and mutual savings banks on June 30, 1947, while interbank deposits
June 30, 1947, amounted to $145,597,- declined 9 per cent to $11,243,000,000.
000,000, 2 per cent less than at the “Holdings of United States govern
beginning of the year,” Chairman ment obligations fell off during the
Maple T. Harl of the Federal Deposit six months, but the amount of bank
In s u ra n ce Corporation announced. loans to business and individuals ex
The* major factor in this decline was a panded 8 per cent to $33,258,000,000 at
further sharp reduction in deposits of the end of June, 1947,” Mr. Harl re
the United States government. A ported.
slight decrease also occurred in depos
The billion dollar increase in real
its of individuals, partnerships, and estate loans outstanding was greater in
corporations for the first time since amount than for any other loan classi
before the war.
fication. Total real estate loans of
The 13,391 insured commercial banks $8,204,000,000 outstanding on June 30,
reported total deposits of $133,696,000,- 1947, represented a rise of 15 per cent
000 at mid-year compared with total in six months. Commercial and indus
trial loans expanded at a slower rate
than during 1946. The total of $14,768.000. 000 in mid-1947 was 5 per cent
above the $14,019,000,000 outstanding
at the end of 1946. The rate of growth
1
for consumer loans, which totaled $4,894.000. 000 on June 30, 1947, was 21 per

hkLiiimm

Printing Ik, Inn

J- - - - - - - - - - - - - - - - - - - - - - - - - - V .

JACK WOLFE, President

Printers —

cent in six months, a lower rate of in
crease than in 1946. Loans for the pur
pose of purchasing or carrying securi
ties continued to shrink and amounted
to $2,796,000,000 at the end of June.
Mr. Harl also said, “ Insured com
mercial bank holdings of United States
government obligations were reduced
from $73,575,000,000 on December 31,
1946, to $69,155,000,000 on June 30,
1947. This contraction of $4,420,000,000
was greater than the net reduction in
Federal debt during the period and re
flected a net transfer of bank-held debt
to non-bank investors in addition to
net retirement by the Treasury.” The
decrease was entirely in short term
obligations. Bond holdings increased
slightly to $53,533,000,000. Holdings of
Treasury notes declined 21 per cent to
$5,342,000,000; Treasury bills dropped
34 per cent to $836,000,000; and certifi
cates of1indebtedness fell 23 per cent
to $9,444,000,000 on June 30, 1947.
Total capital accounts of insured
commercial banks grew from $9,288,000,000 on December 31, 1946, to $9,560,000,000 on June 30, 1947. Since to
tal assets declined moderately the ratio
of total capital accounts to total assets
rose to 6.6 per cent at the end of June
from 6.3 per cent at the end of 1946.
Mr. Harl also stated that deposits
and assets of the 191 insured mutual
savings banks continued to rise during
the first six months of 1947. On June
30, 1947, total deposits in these banks
amounted to $11,901,000,000. Total as
sets increased to $13,169,000,000, as
holdings of United States government
obligations rose 3.4 per cent to $8,216,-

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M O IN ES

Iowa News
000,000 and loans and discounts rose
3.7 per cent to $3,370,000,000. At the
mid-year the ratio of total capital ac
counts to total assets for insured mu
tual savings banks was 9.2 per cent,
almost unchanged from the end of
1946.

Demand Is Strong
The economy of the country as a
whole is benefiting from a strong de
mand not only from consumers but
from business as well, and these two
factors interact upon each other ac
cording to an article in the September
edition of the Northern Trust Com
pany’s Business Comment. With real
incomes in the forepart of this year
45 per cent higher than the 1935-1939
average and 30 per cent higher than in
1940, it is possible that the anticipated
expansion of markets for all kinds of
goods, but particularly for those char
acteristically associated with a higher
standard of living, including better
houses, may have been underesti
mated, the article pointed out.
Consumer expenditures on durable
goods are increasing and would be
higher if more automobiles and other
items were available. The high de
mand, the article pointed out, arises
not only from pentup replacement
needs, which would provide only a
temporary stimulus, but also from a
mass of new buyers whose ability to
buy is higher than before the war.
These new buyers are advancing
their material standards of living in
spite of the sharp rise in the cost of
living. Though there are some who
are worse off than before the war,
when an average is struck it appears
to be on the favorable side, the bank
stated.
Another strong element in the do
mestic demand for goods and labor is
the demand from business itself. De
ferred replacement needs are rein
forced by expansion programs to meet
new market potentials. “ In some in
dustries,” the article stated, “ such as
the petroleum, electric power and tel
ephone, these programs are projected
with a considerable degree of certainty
for some years ahead.”
In other industries the outlook is
much less clear. The most recent sur
vey of the Securities and Exchange
Commission indicated that though cap
ital expenditures by the utilities are
still on the way up, factory expansion
may have passed the peak. Commer
cial programs are down slightly but
perhaps only temporarily. These capi
tal expenditures are of key importance
in the maintenance of prosperity, the
bank said. Because they depend on
the outlook for profits from the ex
panded facilities, consumer buying

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Federal Reserve Bank of St. Louis

need only stop expanding to cause a
sharp curtailment in new capital ex
penditures.
While competition in quality or low
er prices may force purchases of im
proved equipment in bad times, the
record shows that such buying is far
below boom levels, according to the
bank. A question of immediate impor
tance in the domestic business situa
tion is whether improvements in ma
chine tools, the purchases of which
are one of the most sensitive barom
eters of business, have been so great
compared with prewar that the com
bination of competition, obsolesence
and high wage costs, together with
expansion needs, will force a continua
tion of plant and equipment expendi
tures at high levels for some years to
come.
The regularization of these capital
expenditures and the minimizing of
sharp peaks and valleys in the pur-

chases of machine tools and other cap
ital goods has a great deal to do with
the enduring stability of our economy,
according to the article. At the mo
ment the strong demand for consumer
durables could probably soak up ma
terials and labor released from these
industries, but that may not be true
later on, the bank concluded.
W e Could Use It
“ Does that scarecrow really do any
good?”
“ Does it!” Why it scared the crows
so bad that they brought back all the
corn they stole last year.”
Take Your Pick
Pappy: You been seein’ Nellie nigh
onto a year. What are your intentions
—honorable or dishonorable?
Hillbilly: You mean I got a choice?

Greetings

BANK DIVISION

Diebold
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W h e n e v e r you r c u sto m e r s n eed facts
about local or foreign business...m arkets
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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 R P O R A T IO N

Northwestern Banker, O c to b e r, 1947

Iowa News

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Lab or Looks at
Free Enterprise
In a recent editorial, the newspaper
Labor said: “ If Tree enterprise’ fails
in the Lhiited States and Canada, it’s
‘gone with the wind.’ This newspaper
would not like to see that. Labor be
lieves in the American system. ‘Free
enterprise’ has been guilty of many
crimes and Labor hasn’t hesitated to
say so, but, after all, it’s better than
any form of totalitarianism.”
This is a very mild statement of the
case. Free labor has never existed
except where free enterprise has ex
isted. In every country where total
government has been established, the
workers have been among the first to
be enslaved. Their unions have been
destroyed. The right to strike, to
make demands for higher wage, and
better conditions, to organize, and to
change jobs, has been brutally abro
gated. Labor does what it is told.
The newspaper Labor states that
free enterprise has been guilty of
many crimes. So, of course, has or
ganized labor. But in a democratic
society these crimes can be corrected
without destroying our economic sys
tem, or infringing on the basic lib
erties of the people. The crimes of
dictatorship can be corrected only
through revolution and war.
The welfare of labor is inseparable
from the welfare of industry under the
free enterprise system. Whatever the
difference between them, they should
present a united front against ruinous
doctrines of statism.

resources of the nation stand behind
its obligations. Also, this would not
correct the tax inequalities which
exist in the TVA and all other social
ized enterprises. TVA pays nothing in
Federal income taxes. It pays only
small, “token” amounts in lieu of taxes
to local government in its region. By
comparison, the private utilities pay
more than 20 per cent of all their reve
nues for taxes of various kinds. Even
so, any step to force TVA to shoulder
part of the obligations which must be
borne by private enterprise providing
a similar service is highly desirable.
It is time all the people understood
that they, and they alone, must foot
the bills for socialism. TVA, despite
all the windy talk about “social gains,”
is engaged in a commercial business
in the course of which it has destroyed
the heavily taxed electric companies
which formerly served the region.
Similar tactics could be used to destroy
any industry by other tax-free
“TVA’s,” eventually socializing the
whole country in the false notion that
it was the economical thing to do.

The Saturation Point

Last year the per capita inome of
Americans reached a new peak of
$1,200—double the prewar figure. Thus,
even though the purchasing power of
the dollar has declined by about a
third, the average citizen has more
money to spend than he ever had—and
his pay has reached a new high.
This isn’t the sole reason for high
prices by any means, but it is one of
the important factors. The payrolls
TV A Finances
of manufacturing industry have gone
Next session of Congress, a measure up tremendously. So has the cost of
will be introduced to require the Ten farm labor. And, finally, the retailer
nessee Valley Authority to pay in from whom you buy your food and
terest on the funds allocated to it at your clothes and everything else has
the same rate as the Treasury must to pay his help more—along with
pay for the money it borrows. “This,” higher rents, higher taxes, higher
acording to one observer, “is by far everything.
the most drastic and important TVA
Under these conditions, we can re
fiscal reform yet to gain major sup duce prices—or prevent further major
port.”
increases—only by improved produc
It is also a reform which is long tion methods, which industry is con
overdue. Ever since its inception, the stantly seeking, and by increased out
TVA has been subsidized at the ex put on the part of labor. Those two
pense of every taxpayer. It has not factors were responsible for the im
paid a single cent in interest on the mense efficiency achieved by mass pro
enormous amounts of money appropri duction in the past. They gave us the
ated for it. Yet the government, which highest standard of living on earth,
provides the money, must pay interest and a dollar whose buying power was
to the bondholders who initially fur relatively stable. And they are in
nished it.
direct opposition to the present day
To charge the TVA interest at the philosophy of more pay for less work.
going rate paid by the Treasury would
Industry wants lower prices, in
not, of course, correct all the unfair order to maintain the mass market by
financial advantages the Authority which it lives. Retail business wants
now enjoys. The government can lower prices for precisely the same
obtain funds at substantially lower reason. It has voluntarily absorbed
interest rates than any other borrower, increased overhead in an effort to
for the simple reason that the entire avoid passing it on to the ultimate

Iowa News
consumer. But the point has been
reached and passed where this can
continue to be done. The goods you
buy, in the vast majority of instances,
are sold at the lowest price possible
under today’s economic conditions.

H ig h w ay S a fe ty
“ Live and Let Live,” a new high
way safety educational motion picture
which pioneers the use of three-dimen
sional animation to demonstrate 10 of
the leading causes of accidents, has
just been released by the Motion Pic
ture Bureau of the Aetna Casualty and
Surety Company of Hartford. Con
necticut.
Through the use of exact replicas
of trucks and automobiles, moving on
realistic, miniature sets, entire traffic
sequences are filmed from above and
presented with panoramic effect. As
a result, audiences can see the cause
and effect of unsafe driving practices
and the reason for each safety sug
gestion more clearly than would be
possible through any other technique.
The film, which has a running time
of ten minutes, was photographed en
tirely in full color. Prints are avail
able to Aetna agents who arrange
showings in their own communities
as a part of their loss prevention ac
tivities.

Prom oted
Rudolph Ostengaard, formerly as
sistant comptroller of California Bank,
Los Angeles, was recently appointed
assistant cashier and assigned to the
banks and bankers department.
Former comptroller of the Live
Stock National Bank, Chicago, Osten
gaard joined the California Bank staff
over two years ago. He is active in
the National Association of Bank
Auditors and Comptrollers, serving as
president of the Chicago conference
in 1942, and is a member of the Los
Angeles Control, Controllers Institute
of America.

Syracuse University in 1934. His af
filiation with The Home Fleet began
in May, 1940, when he was employed
as special agent in Syracuse after hav
ing served three years with the New
York Fire Insurance Rating Organiza
tion.

Trust C onference
The advance program for the twentyfirst Pacific Coast and Rocky Mountain
States Regional Trust Conference to
be held on October 22nd, 23rd, and 24th
at the St. Francis Hotel, San Francisco,
California, by the trust division of the
American Bankers Association was an
nounced by Evans Woollen, Jr., presi
dent of the division. Mr. Woollen is
president of the Fletcher Trust Com
pany, Indianapolis, Indiana.
The Associated Trust Companies of
Central California will be host to the
conference. B. B. Brown, vice presi
dent and trust officer of the American
Trust Company, San Francisco, Cali
fornia, is general chairman of the con
ference.
A well rounded program for the
three days has been arranged by the
program committee, of which H. M.
Bardt, vice president and senior trust
officer of the Bank of America N. T. &
S. A., San Francisco, is chairman.
One of the special features will be a
panel on trust investments under the
leadership of Laurence H. Tharp, vice
president and trust officer of AngloCalifornia National Bank, San Fran
cisco. Panel members will discuss
“The Duty to Consider the Purchasing
Power of the Income Produced and
Distributed to Beneficiaries.”
One Man Error
“ W h a t’s alimony?”
“ A system by which, when two peo
ple make a mistake, one of them con
tinues paying for it.”

BU YERS

FO R

State A gent
The Home Insurance Company an
nounces the appointment of Frederick
G. Martin as state agent of all com
panies of The Home Fleet in Syracuse,
to succeed the late Frank M. Kelley.
Mr. Martin was born in Peace Dale,
Rhode Island, and graduated from

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The Board of Directors of The Com
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declared a quarterly dividend of 50
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1947, to stockholders of record Septem
ber 24, 1947.

111

neighboring

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All correspondence and negotiations

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414 S e v en th iit.

DES M O I N E S 9, I O W A

Northwestern Banker. October, 1947

1 12

Iowa News

C arl Kuehnle Resigns

Business for A ll

Carl F. Kuehnle has resigned as
There is always a good deal of talk
president of the Central National Bank concerning the relative virtues of “big
in Chicago, and because of his health business” and “small business.” One
is retiring from active management important and frequently overlooked
of the institution. He will continue, aspect is that small business is often
however, to hold his stock interest in the training ground for big business
the bank and will serve as a director. executives—and that, conversely, train
J.
Ross Humphreys, former admin ing received in big business often en
istrative vice president and cashier, ables a man to start a small business
has been elected to the presidency to and make a go of it.
succeed Mr. Kuehnle. G. L. Nelson
This is particularly well illustrated
will continue in the position of senior in retail merchandising. The “big busi
vice president, and will also become ness men” in retailing were almost all
cashier.
Adam Cieciwa has been “little business men” in the past. The
elected auditor of the Central National. major chain systems all developed
from small stores. And the largest
department stores, for the most part,
were once little outlets run by one or
two people.
Again, many men and women have
gone to work for large retail stores
in minor capacities, have gained the
desired experience, and then have
opened their own stores and prospered.
Of late, a legion of veterans have been
learning in this fashion and it is to
the credit of the retail industry that
established chains and independents
willingly provided a training ground
for men who will be their competitors
in the future.
America has been a country where
small business, under efficient and in
telligent management, becomes big
business—and where the big business
that is too lethargic to move with the
times gradually becomes small busi
ness and eventually goes out of busi
ness altogether. That kind of oppor
tunity, and the economic system which
makes it possible, must be perpetuated.

P olitical M edicine

B .J . F L Y N N , i r « » .

O.L DUNSAN . S«cy.

#•

De$ M o in es
Banker, October, 1947
Digitized for Northwestern
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It has been said that proposals for
all-inclusive government health insur
ance, to be financed by another payroll
tax, are not intended to socialize the
practice of medicine. It is true that
the word “socialization” is never used
in the text of such bills. But the very
scope of the proposals would make
socialization inevitable.
First of all, the tax would produce
from $4,000,000,000 to $6,000,000,000 a
year—and that would be a juicy plum
indeed. An enormous bureaucracy
would have to be created to administer
it. Control would be vested in Wash
ington office holders, who would write
the rules and establish the procedures.
That kind of concentration of author
ity is always a prelude to socialism.
Secondly, the bureaucrats, most of
them laymen, would by their spending
power alone largely dominate doctors,
hospitals and everyone and everything
connected with the practice of medi
cine. A doctor who didn’t play ball
with the politicians would risk a loss

of revenue. Promotion would largely
depend upon political favor. And the
standards of medical care would suffer
tremendously.
Regimentation is but the forerunner
of socialism or communism. Once the
doctor became enmeshed in the endless
red tape of government, the next logi
cal development would be to place him
on the public payroll. Then we would
have political medicine—at the ex
pense of medical progress and the
public health.

It Can't Be Done
Who’s worried about high prices?
You, the consumer, naturally are.
And you aren’t alone. So are the man
ufacturers who produce the goods you
buy. And so are the retailers who sell
them to you.
Retailing in general has held to a
consistent policy during postwar price
inflation. The policy was developed by
the chain systems, and thousands of
independents of all kinds and sizes
have voluntarily adopted it. It con
sists of increasing operating economy
to the highest possible level, to holding
unit profits to the lowest point con
sistent with sound business practice,
and to raising prices only when higher
wholesale prices make it unavoidable.
Other innovations are also being
used in an attempt to help the hardpressed consumer. Many food retail
ers, for instance, are offering plainlymarked, lower-priced meats and are
featuring alternate foods for buyers
who cannot afford Grade A prices.
Merchandisers in other lines are per
forming similar services.
A retail association reports that few
er consumers are blaming stores for
high prices than in the past. That is
a healthy sign, and shows that the
public is learning an important lesson.
High prices are the result of many
causes, some extremely complex, and
to lay the blame on any group or any
organization is unjust. It is especially
unfair in the case of retailers, who
cannot control wholesale prices, and
must pay the going rate for their stock
of goods. Every intelligent retailer
would like to slash his prices now—
but it just can’t be done.

G et R ead y for W inter
Summer and early fall are the times
for preparing homes for winter—with
especial attention paid to the elimina
tion of fire hazards.
One of the major causes of home
fires is defective heating units, ranging
all the way from oil stoves to central
heating systems. Even the best of
appliances become worn. Flues and
chimneys become filled with soot. Dur
ing the war, it was often impossible

113
to adequately maintain heating plants
due to shortages of parts and labor.
There are still shortages, but not as
severe as in the immediate past. The
money spent will pay tremendous divi
dends in safety and security.
Faulty electric wiring is still a major
destroyer of homes. Important repairs
should be made by a qualified electri
cian. Frayed cords should be replaced.
Then, when your electrical equipment
is subjected to the heaviest use, it will
safely carry the load.
Lastly, during the pleasant weather,
home owners should carry on a rigor
ous campaign to rid their property of
junk. Thousands of fires have origi
nated in attics and cellars and closets
filled with old clothes, furniture, maga
zines, etc. Many fires have resulted
from improper storage of paint, gaso
line and other inflammables. A clean
and orderly house offers fire few oppor
tunities.

To a Vote
Writing in the New York Times,
John P. Callahan states that “indis
putable support for the claims that the
voters of the nation are tending away
from municipal, or public ownership
of power plants appears in a round-up
of franchise election results held in
thirty-four communities in thirteen
states since January 1st, compiled by
the Edison Electric Institute.”
Only two of the thirty-four com
munities—5.9 per cent of the total—
favored public ownership, while thir
ty-two favored the private power sys
tems. On the basis of total vote, the
sentiment against socialized power was
overwhelming—556,999 to 3,368.
Since 1933, Mr. Callahan continued,
the voting trend has been steadily
away from public ownership. The sin
gle exception was 1938, when Federal
grants led to a short-lived increase
in the number of communities voting
themselves into the power business.
Thereafter, “the vote was consistently
in favor of ownership by the businessmanaged power companies.”
Of great significance, the voters have
favored enterprise in areas adjacent to
great Federal power dams. For exam
ple, one of the most important of the
franchise elections took place recently
in the state of Washington. The pri
vate utility was given a substantial
majority. This, to quote Mr. Callahan
once more, “was interpreted by ob
servers on both sides as conclusive evi
dence that the people of that and other
areas preferred private ownership.”
To sum up, when the people are
given a chance to vote, they almost al
ways reject socialism. Congress should
remember that when it considers pro
posals to force socialism down the
public throat.

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

J osep h J e w e lr y C o m p a n y

IN D E X

108

K
K a lm a n and C o m p a n y ..
K lin k n e r , J. E .....................
K o c h B r o th e rs ...................
K o s e k , E r n e s t ...................

A D V E R T IS E R S

112
110
43

L,
OCTOBER,

1!> IT

A
A lle n , H a ro ld L., I n v e s tm e n t C o m p a n y .
A llie d M u tu a l C a s u a lty C o m p a n y ..........
A m e r ic a n L ith o g ra p h in g - and P r in tin g

45
56

L a M o n te , G e o rg e and S o n ................................
5
L a m s o n B r o th e r s ................................................. 40
L e s s in g A d v e r tis in g C o ..................................... H 2
L iv e S to c k N a tio n a l B a n k — C h ic a g o ------ 85
L iv e S tock N a tio n a l B a n k — O m a h a . . . . 82
L iv e S to c k N a tio n a l B a n k — S io u x C ity . 70

Co................. ................................................ 100

A m e r ic a n N a tio n a l B a n k and T r u s t Co. 34
B

B a lla r d -H a s s e t t C o m p a n y ............ .............. 43
B a n k e r s T r u s t C o m p a n y — D es M o i n e s .. 115
4
B an kers T ru st C om pany— N ew Y o r k . ..
B a n k s , W ill ia m H ., W a r e h o u s e , I n c . . . . 97
B eck er, A . G., and C o m p a n y , In c .............. 48
B e c k e r and C o w n ie, In c .................................. 49
B eh, C a rle to n D ., C o m p a n y ........................ 42
B e y e r -R u e ffe l and C o m p a n y ........................ 45
B la ir , W ill ia m and C o m p a n y ...................... 42
B u c k h a m , H . B., and C o m p a n y , In c ......... 103
B u r r o u g h s A d d in g M a c h in e C o m p a n y . . 27
B y lle s b y and C o m p a n y .................................. 38
C
. 96
C a p ita l C ity S ta te B a n k ........................ ..
C a rn ah an , T. D .— M in n e s o ta M u tu a l L ife o9
C e n tra l N a tio n a l B a n k in C h ic a g o . . . . 107
C e n tra l N a t i o n a l. B a n k and T r u s t
C o m p a n y — D es M oin e s .....................7 -8 -9 -1 0
C e n tra l S ta te s M u tu a l In su ra n c e
A s s o c ia tio n .......................................................... 60
C h ase N a tio n a l B a n k ..........................
33
C ity, N a tio n a l B a n k and T r u s t
C o m p a n y — C h ic a g o ........... 69
C o n tin e n ta l B a n k and. T r u s t C o m p a n y . 109
C o n tin e n ta l N a tio n a l B a n k — L i n c o l n ... 80
C op elan d , J am es H .— N o r th w e s te r n
M u tu a l L ife ..........................................
59
C o rm a c k , K im b a ll J. M .— N o r th w e s te r n
M u tu a l L ife .......................................-,.............. 58
C rab b e, T h o m a s L ., and C o m p a n y .......... 39
C re d it B u re a u R e p o rts , In c .......................... 72
C r o c k e r F ir s t N a tio n a l B a n k of
San F ra n c is c o .................................................
6

IJ
D a r lin g A g e n c y ............ ................................. ... ■ 56
D a v e n p o rt, F . E . an d C o m p a n y ..............8 0-96
D a y , N e w e ll C.— E q u ita b le o f Io w a . . . . 58
D e L u x e C h eck P rin te rs , In c ........................ 69
D e M a ris, R a lp h E .— C o lu m b ia n
N a tio n a l L ife ................................................... 5o
D es M oin e s B a n k an d T r u s t C o m p a n y . .109
D es M o in e s B u ild in g , L o a n and S a v in g s
A s s o c ia tio n
......................................................... H I
D ie b o l d ,

M
M a x w e ll, C h a rle s M .— C o n n e c tic u t
G e n e ra l L ife ..................................................... 54
M a rq u e tte N a tio n a l B a n k ................................ 87
M cC o rm ic k , F r a n k L .— E q u ita b le L ife
o f Io w a ................................................................. 56
M cC ra ry , D e a rth and C o m p a n y ................. 43
M e rc h a n ts M u tu a l B o n d in g C o m p a n y .. 97
M e rc h a n ts N a tio n a l B a n k ............................. 2-3
M id la n d N a tio n a l B a n k o f M in n e a p o lis 90
M ill O w n e rs M u tu a l F ir e In su ra n c e C o .. 57
M in n e a p o lis M o lin e P o w e r Im p le m e n t
C o m p a n y ............................................................... 32
M in n e s o ta C o m m e rc ia l M e n ’ s
A s s o c ia tio n
........................................................ 66
M o rr e ll, John, and C o m p a n y ...................... 95
M o rr is P la n C o m p a n y .......................................106
M u rp h y , T h o m a s D ., C o m p a n y ................. 107

N
N a tio n a l B a n k o f C o m m e r c e ...................... 78
N a tio n a l B a n k o f W a t e r l o o . ........................ 86
N a tio n a l C ash R e g is t e r C o m p a n y ........... 12
N a tio n a l C o m p a n y o f I o w a ........................ 39
N a tio n a l F ire G r o u p ......................................... 54
N e w h o u se P ap e r C o m p a n y ...........................104
N ie m an n , W . K .— B a n k e r s L ife C o......... 54
N o rth e rn T r u s t C o m p a n y ............................... 64

O
Office M ach in e S u p p ly C o m p a n y ................ I l l
O ffse t P rin te rs , In c ......................................: . . . 1 1 2
O lson, W . R ................................................................ H I
O m ah a N a tio n a l B a n k ....................................... 23
O sgo od , N is s ly & G a n fie ld ..................... . . . . 1 1 0
O tto, P a u l C.— C o n n e c tic u t M u tu a l L ife 61

P
P io n e e r H i-B r e d Corn C o m p a n y ............ 105
P o lic y h o ld e rs L ife In su ra n c e C o m p a n y 52
P oo le, C u rtis W . — E q u ita b le o f
N e w Y o r k .......................................................... 60
P r ie s te r and C o m p a n y ..................................... 48
P u b lic N a tio n a l B a n k and T r u s t C o . . . . 72

Q
Q u ail and C o m p a n y ..............................................

I n c ....................................................................... 109

D ir e c t A d v e r t i s i n g ............................................... 106
D o a n e A g r ic u ltu r a l S ervice, In c ................. 30
D ro v e rs N a tio n a l B a n k ..................................... 35
E
E llis , L. E ., and C o m p a n y ...........................
E m p lo y e r s M u tu a l C a s u a lty C o m p a n y .
E n y a r t, J. C ............................................................

54
53
40

F
F a u lk n e r , W . H .— S ta te A g e n t — C rum
& F o r s te r ............................................................... 58
F ilip , F r a n k 'a n d C o m p a n y ............................. 46
F ir s t N a tio n a l B a n k — C h ic a g o ................. 31
F ir s t N a tio n a l B a n k o f M i n n e a p o l i s ... 62
F ir s t N a tio n a l B a n k — O m a h a .................... 80
F ir s t N a tio n a l B a n k — St. L o u i s .................... 81
F ir s t N a tio n a l B a n k -^ -S t. P a u l. . . . . . . . . 67
F ir s t N a tio n a l B a n k — S io u x C i t y ............ 84
F ir s t St. Josep h S to c k Y a r d s C o .............. 78
F ir s t T r u s t an d S a v in g s B a n k —
D a v e n p o r t .............................................................. 102
F ir s t W is c o n s in N a tio n a l B a n k ............... 28
F is h e r, S h e rr y R .— C o n n e c tic u t M u tu a l. 57
F r a n k e l's C lo th in g ......................, ...................108

II
H a m m e r m ill P a p e r C o m p a n y . ! . . : .......... 25
H a r tfo r d F ir e In s u ra n c e C o........................ 59
H a .w k e ye C a s u a lty C o m p a n y ...................... 50
H e n d e r so n , T . C. and Co., In c ..................... 46
H o m e F le e t — E . H . D a v i s . . . . .................... 60
H o m e In s u ra n c e C o m p a n y ............................. 11
H o n o r R o ll B a n k s o f I o w a ....................... 9 8-99
H o p k in s In s u ra n c e A g e n c y ............ : ........... 59
H o te l F o r t D e s M o in e s ................................... HO
I

I n t e r -s t a t e B u s in e s s M e n ’ s A c c id e n t Co. 58
I n v e s to r s S y n d ic a te .......................................... 45
Io w a D e s M o in e s N a tio n a l B a n k
and T r u s t C o ....................................................... 116
Io w a L ith o g r a p h in g C o m p a n y ....................... 110
Io w a S ta te B a n k — D es M o in e s .................. 104
Io w a S ta te B a n k and T r u s t C o m p a n y .. 102

R a v e n c r o ft and C o m p a n y .............................. 46
R o llin s , E . H . and S o n s .................................. 39
R o llin s , R ich a rd R ., In c .................................. 48
S
St. P a u l M e rc u ry In d e m n ity C o m p a n y . . 55
St. P a u l T e rm in a l W a r e h o u s e C o ............ 29
S c a rb o r o u g h and C o m p a n y ................ 5 1 -8 3 -9 5
S e c u rity N a tio n a l B a n k — S io u x C i t y .. 94
Shaw , M c D e r m o tt & C o m p a n y .................... 38
S now , E . H .— A e tn a L i f e ................................ 61
S p a rk s and C o m p a n y ......................................... 45
Speers, H . C., and S o n . ..................................... 49
S ta te F a r m In su ra n c e C o m p a n y ............... 59
S tife l, N ic o la u s & Co., In c ............................... 36
S tock Y a r d s N a tio n a l B a n k — O m a h a .. 79
S to c k Y a r d s N a tio n a l B a n k — St. P a u l .. 68
T
T e n sio n E n v e lo p e C o r p o r a tio n .....................106
T o o tle L a c y N a tio n a l B a n k ....................... 7 6-77
U nion B a n k and T r u s t C o m p a n y ............... 88
U n ite d S ta te s N a tio n a l B a n k ...................... 74
V
V a lle y B a n k and T r u s t C o m p a n y ..........
V ie th , D u n c a n and W o o d ................................

89
40

W
W a lla c e -H o m e s t e a d C o m p a n y .....................101
W a lt e r s , C h a rle s E ., C o m p a n y .......................78
W a t e r lo o S a v in g s B a n k .................................. 91
W e b s t e r L ife In su ra n c e C o m p a n y ............ 61
W e lc h - Io w a P r in tin g Co., In c ................... 108
W e s t e r n M u tu a l F ire In su ra n c e C o ......... 52
W h e e lo e k and C u m m in s .................................. 36
W h it e -P h illi p s C o m p a n y , In c ..................... 43
W i ll i s an d M o o r e ................................................. 60
W it m e r -K a u f f m a n -E v a n s C o m p a n y . . . 61
W o r k L e tte r S erv ice ........................................ 112

z
Z a is e r ’s

........................................................................H I

Northwestern Bankéf, O c to b e r, 1947

114

Failure
A beggar clutched at the sleeve of a
benevolent-looking passer-by.
“Five cents, sir, for a cup of coffee?”
he whined.
The other turned to survey him.
“Why should I give you five cents?”
he asked. “ What brought you to this
sad plight?”
“A terrible catastrophe, sir,” the
beggar replied. “ Two years ago, like
you, I enjoyed business prosperity. I
worked industriously. On the wall
above my desk was the motto: ‘Think
Constructively. Act Decisively.’ Wealth
poured my way. And then—and then
“Yes, and then?”
The beggar’s frame shook convul
sively.
Tough
Bill, the burglar, was hard-boiled.
H e had been shot at by hundreds of
policemen and had been pierced by at
least a dozen bullets, but evidently he
was too tough to hurt. A t last, how
ever, he was captured and condemned
to die in the electric chair.
The fateful day came and Bill was
led to the execution room and strapped
in the chair. It took six men to do it
and they had their hands full at that.
Five, ten minutes passed and hardboiled Bill’s air of bravado began to
fade.
H e grew a shade paler and
seemed a trifle nervous.
“ A ll right, come on,” he growled,
“ turn on the juice and have it over
w ith !”
“ T-turn it o n ?” stuttered the prison
electrician, in an awed voice. “ Man,
it’s been on for five m inutes!”

Efficiency
A new police officer was anxious to
make a record, and his chance came
very soon. When he was on his beat
he phoned to the police station and
reported: “ There’s a man that’s been
robbed by some other men and I’ve
got one of them.”
“Which one have you got?” asked
the sergeant.
The reply came back: “ The man
that was robbed.”
Northwestern Banker, October, 1947

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

Respect
Herbert had been taught to rise
when his mother entered the room and
remain standing until she was seated
or until she withdrew.
One day a boy friend came to see
him. Herbert’s mother came into the
room where the boys were and Her
bert arose. His friend made no move,
so Herbert asked him to stand up.
A few minutes later mother again
entered the room and Herbert arose,
while his friend reluctantly arose to
his feet.
When Herbert’s mother entered the
room for the third time and her son
arose, the guest said, disgustedly, “ Say,
what do think your mother is. the
National Anthem?”
There Goes M y Bet
“You call that a race horse? Can
the nag run?”
“ Run? Why that horse can stand
still faster than most horses gallop!”
Short of Breath
Waiter: Mr. Brown left his um
brella again. I believe he’d leave his
head if it were loose.
Manager:
You’re right—I heard
him say yesterday he was going to
Arizona for his lungs.

C O X V E N T iO N S
October 6-8, 61st Annual Convention,
Iowa
State
Association,
Des
Moines, Hotel Fort Des Moines.
October 6-9, Annual Convention, Fi
nancial Advertisers Assn., New
York City, Hotel Waldorf.

October 20-25, South Dakota Bankers
Association Group Meetings.
October 22-25, National Assn. Bank
Auditors and Comptrollers, Balti
more, Md.
November 6-7, A.B.A. Mid-Continent
Trust Conference, Chicago, Drake
Hotel.
November 10-11, Annual Convention,
Nebraska Bankers Association,
Omaha. Hotel Paxton.

Kid Talk
First Kid: You got a new baby at
your house? Whereja git him?
Second same: Doctor Brown brung
him.
First: We take from him, too.
H e’s Nuts Now
Asylum Warden:
So you think
you’re sane now. If I let you go will
you leave liquor and women alone?
Inmate: I sure will.
Warden: You’d better stay—you’re
still crazy!
Call Me Shaky
Boss: You can’t ask for a raise like
that. You must work yourself up.
Salesman: I did—I’m trembling all
over.
A Dog’s Life
A beggar sat in a street of Edin
burgh with an extended tin cup, a
small dog, and large sign reading,
“Pity the Blind.”
A passing Englishman tossed a six
pence into the cup. In a moment the
charitable one decided that he might
as well have some amusement for his
money, so he said to the beggar, “Wait
a bit. I just put a half-sovereign into
your cup.”
“Na, na!” retorted the Scot. “ ’Twas
only saxpence.”
“ So!” cried the Englishman angrily.
“You’re not blind at all. You’re a
fraud!”
“ Not at all,” was the calm reply.
“ It’s the dog that’s blind, not me!”

Question
A girl attended her first ball game.
A fte r watching the entire game she met
one of the players. In her sweet little
way she asked, “ W h y does the fellow
behind the plate wear the muzzle when
it’s the one with the big stick in his
hand that does all the grow ling?”

Too Much Music
“ Y o u don’t want to dance?
It’s
nothing but hugging set to music,
what’s wrong with that?”
“ The music.”

Even the smallest items require
CAREFUL HANDLING

M em ber Fed. R es. System
M em ber Fed. D ep . Ins. Carp.

“Trifles make perfection, and perfection is no trifle.” That adage
emphasizes the importance of precision— whether in factory methods
or financial matters.
Iowa bankers, realizing the value of close attention to detail in bank
correspondence, often comment on the prompt careful manner in
which we handle each item of their Des Moines business.

BANKERS TRUST COMPANY
SIXTH AND LOCUST

WELCOME!

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

DES MOINES

We look forward to seeing you in Des Moines during the State Convention, October 6 to 8

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

'We ll
heloakiita
YOU in DES MOINES
W e look forward with pleasure to welcoming
customers and friends to Des Moines for the
1947 convention of the Iowa Bankers Associ
ation, October 6th, 7th and 8th.
On your arrival we hope you will stop in to
see us.
If there is anything we can do to make your
convention visit more pleasant and profitable
we shall be happy to serve you.
★

STRONG,

DEPENDABLE

CO RRESPO N D EN T

Member Federal Deposit Insurance Corporation

C O N N E C T IO N