Full text of The Northwestern Banker : September 1924, Twenty-Ninth Year, Number 445

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DES

MOINES

Chicago to Welcome A. B. A.
Convention
How Bankers View Increase in Price
of Farm Products

THE PH O TO BELOW
Chicago’s famed Michigan Boulevard, with
which A . B. A . delegates will b ecom e fa
miliar at the 1924 convention. This view
shows the avenue south from Randolph
street, with Art Institute left cen ter and pu b
lic library extrem e left.— P h oto by U nder
w ood and Underwood.

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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

Northwestern National
Life Insurance Company
MINNEAPOLIS, MINNESOTA
JOHN T. BAXTER, President

PURELY

MUTUAL,

OLD-LINE, WESTERN

OFFICERS
F R E D E R IC K

H . D A V I S , P re sid e n t

C. T . K O U N T Z E , V ic e P re s id e n t and
C h a irm a n

COMPANY

BANKER

September, 1924

D IR E C T O R S
F.

A . C H A M B E R L A I N , P re s id e n t
tio n a l B a n k

F ir s t

N a

E . W . D E C K E R , P re s id e n t N o r th w e s te r n N a
tio n a l R a n k
C. T . J A F F R A Y , P re s id e n t “ Soo” R a ilw a y
J. A . L A T T A , V ic e -P r e s id e n t N o r th w e s te r n
N a tio n a l B a n k
E . L . C A R P E N T E R , P re s id e n t S h e v lin -C a r p e n tc r -C la r k e Co.
B. F . N E L S O N , P re s id e n t H e n n e p in P a p e r Co.
A . F . P I L L S B U R Y , T r e a s u r e r P ills b u r y F lo u r
M ills Co.
T . F . W A L L A C E , T reasu rer F arm ers & M e
c h a n ic s S a v in g s B a n k
JO H N T . B A X T E R , P re s id e n t N o r th w e s te r n
N a tio n a l L ife In su ra n c e Co.

Ask the Man Who
Knows

T . L . D A V I S , V ic e P re sid e n t
F . W . T H O M A S , V ic e P re sid e n t
E . L . D R O S T E , V ic e P re sid e n t
J. H . B E X T E N , C a sh ier
G . T . Z IM M E R M A N , A s s t . C a sh ier
A . H . C H IS H O L M , A s s t . C a sh ie r
E . F . J E P S E N , A s s t . C a sh ie r

Does advertising pay?
W hen you ask the man who
K N O W S , the one who has used
advertising intelligently, you will
get the real facts.

J. F . M c D E R M O T T , A s s t . C a sh ier

Resources $25,000,000.00

T h i r s t Nalional
IBank of Omaha
has e fficien tly served W e s t e r n B a n k s
fo r 06 y e a r s. Y o u r b u sin e ss is in v ite d .

He will tell you that advertising
placed in the right medium is a
wonderful business builder.
When you want to reach bankers
use the publication that is really
dominant in this territory.

The

Northwestern Banker

Your Representative
In Davenport and eastern Iowa should be a bank
capable of handling any sort of financial trans
actions.
We have at your service an experienced Bond
Department, a thoroughly equipped Trust Depart
ment. These departments and many others together
with our splendid new Banking Home, rapidly
nearing completion, reflect not only the desire for
progressiveness, but our desire to serve Iowa
Bankers better than ever before.

First National Bank
Davenport, Iowa
A.

F. D A W S O N , President

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Federal Reserve Bank of St. Louis

IRVIN J. G R EEN , Cashier

All Essential Facilities
This bank maintains all of the facilities
which you may require of your Sioux City
District correspondent and assures you of
the friendly personal interest of its officers
in the statisfactory handling of your account.

The First National Bank
of Sioux City, Iowa
The Bank of Stability and Service

September, 1924

THE

NORTHWESTERN

BANKER

Jhe
most sensational
Deposit'Builder
in Y e a rs /
P a te n ts
P e n d in g

Makes Saving
Fascinating
The appeal that the dollar
sign makes is not possessed
by any other savings device.
The bank is filled surprisingly
fast and the habit of saving
even small amounts grows.
Steadily growing active ac
counts are what you want—
and the Doliar-Sign does the
work.

The “ Dollar-Sign” Wallet Bank

SUCCESSFUL campaign for new accounts, for more business,
needs something with a “ punch” .

The Dollar-Sign Wallet Bank— unique, sensible, appealing, result
ful is just the item that will put “ life” into YOUR campaign.
Your solicitors will find it an overwhelming inducement— a sure
closer . Window and lobby displays and direct mail will bring
immediate results when you use this new business-builder.
The original appeal to the depositor does not wear cff. The bank
is used, shown around, talked about— A D V E R TISE D — by the
users. And the reminder to save, seen many times daily, brings
in many more dollars to you while the savings habit grows stronger.
Accounts secured by this method cost you little or nothing. We
will be glad to tell you of a number of proven methods of distri
bution which will not only produce quick results for you— but will
more than pay for the cost of the banks.
We Want Men

WRITE OR WIRE FOR SAMPLE

in several territories to
help present this propo
sition to interested bank
ers. The right men will
find this a most remu
nerative connection. Can
you recommend anyone?

Without obligation, we shall be pleased to send to
executives of banks a sample of the Dollar-Sign Wallet
Bank and explain our proposition in detail.

NATIONAL BANK SUPPLY COMPANY
Manufacturers of Business Building Savings Banks

226 Lafayette Street

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Federal Reserve Bank of St. Louis

NEW YO R K

W o m e n are Savers
and must not be overlooked in any real plan
for building deposits.
T o appeal to the
ladies we have designed this special wallet
of a fancy finish genuine leather.
Each
wallet has a vanity

THE

NORTHWESTERN

BANKER

A NEW CONVENIENCE FOR
YOUR FALL TRAVELS
T ' H E S eab o ard C h e c k book-Letter of Credit, an
ingenious combination of an
ordinary checkbook with a
letter of credit and identifica
tion card. Makes the secur
ing of cash when away from
home much easier and more
pleasant.

T he Seaboard N a t io n a l B ank
of the City of New York
M A IN OFFICE: Broad and Beaver Streets
M E R C A N T IL E B R A N C H

115 Broadway
at Cedar Street

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Federal Reserve Bank of St. Louis

UPTOW N BRANCH

20 East 45th Street
near Madison Ave.

September, 1924

¡September, 1924

THE

NORTHWESTERN

BANKER

THE FIRST NATIONAL
BAN K OF CHICAGO
and the FIRST TRUST
AND SAVINGS BANK
offer to B a n k s and BANKERS a
c o m p le t e a n d c o m p r e h e n s iv e
service w h ic h is the resu lt o f
m ore than sixty years’ experience
C om bined resources exceed $ 3 5 0 ,0 0 0 ,0 0 0
JAMES B . F O R G A N , Chairman
Board o f Directors o f Both Banks

l i l i

FRANK O . WETM ORE
President
First National Bank o f Chicago

M E L V IN A . T R A Y L O R
President
First Trust and Savings Bank

RUINS OF THE
p®
BUILDING------1871 I

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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

BANKER

September, 1924

To the Members of the American
Bankers Association
E L C O M E to Chicago»—the heart
of America.

M ay every delegate

enjoy this, the Golden

Anniversary

Convention of the American

Bankers

Association.
W e cordially invite you, your families
and friends to visit us and make use of
our offices while here.

A n y opportu

nity afforded us to contribute to your
pleasure and comfort during your visit,
w ill be considered a great privilege.

Tlie Foreman National Bank
T h e Forem an T ru st and Savin gs B a n k
( Succeeding Foreman Bros. Banking Co.)

LA SALLE and WASHINGTON STREETS

Combined Capital, Surplus and Undivided Profits Exceed $6,000,000

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Federal Reserve Bank of St. Louis

September, 1924

THE

NORTHWESTERN

BANKER

Commercial Banking, Personal Checking Accounts,
Foreign Banking, Bonds, Trusts, Savings,
Safe Deposit Boxes

H P O TH O SE banks who feel there is a
measurable advantage in a Chicago
connection where a personal interest w ill
be felt in them and in their transactions,
w e offer a service the efficiency and com
pleteness o f w hich attests our appreciation
of their business.

THE NORTHERN
TRUST COMPANY
Capital and Surplus, $ 5 ,0 0 0 ,0 0 0
DIRECTORS
A. W A T S O N A R M O U R
Vice President, Armour & Company

E D W A R D L . R Y E R S O N , JR.
Vice President, Joseph T. Ryerson & Son

SEW ELL L. A V E R Y
President, U. S. Gypsum Company

M A R T IN A . R Y E R S O N
W A L T E R B Y R O N S M IT H

DE F O R E S T H U L B U R D
President, Elgin National Watch Co.

JO H N S T U A R T
President, The Quaker Oats Company

JO H N T. P IR IE
Carson Pirie Scott & Company

E R A J. W A R N E R
President, Sprague, Warner & Company

K E R S E Y C O A TE S R EED
Secretary, Marshall Field & Company

SOLOM ON A . S M IT H
President, The Northern Trust Company

N. W. C O R N E R L A S A L L E and M O N R O E S T R E E T S , C H IC A G O

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Federal Reserve Bank of St. Louis

THE

TH E

NORTHWESTERN

S T O C K

September, 1924

BANKER

Y A R D S

B A N K S

The new home of The Stock Yards National and The Stock Yards Trust
& Savings Banks, now in course of construction, will be a replica of one
of the nation’s best-loved structures, Old Independence Hall in Philadelphia. This building when completed will give to The Stock Yards
Banks one of the most unique, well-appointed bank buildings in the
United States.

•

A generous welcome awaits visiting members of the American Bankers Association
during the convention in Chicago at these old established yet exceeding friendly in
stitutions.

COMBINED RESOURCES, TW E N TY-SE V EN MILLION DOLLARS

T h e Stock Y a rd s N a tio n a l B an k
and

The Stock Yards Trust and Savings Bank
o f C H IC A G O

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Federal Reserve Bank of St. Louis

September, 1924

THE

NORTHWESTERN

BANKER

O FFICERS
C h a rle s

M cN id e r,

P re sid e n t

W illis G. C. B agley
V ic e P resid ent

R o b e rt P . Smith
Cashier

Carl A . P arker
V ic e P resid ent

H arold V . Bull
A ssistant Cashier

F red E. K eeler
V ice P resid ent

H a rry C. F isher
A ssista n t Cashier

H a n ford M acN ider
V ice P resid ent

W illiam W . B oyd
A ssistant Cashier

Mason City and
The First National Bank!
Mason City, one of the largest and most progressive cities in
Iowa, plays an important part in Iowa Business and Iowa Industry.
The First National Bank, 55 years old, one of the largest
banks in Iowa, performs a very definite service to Mason City and
the Iowa Banking Fraternity.
Progressiveness—yet common sense conservation coupled
with a bank of unlimited assets, backed by a competent direc
torate— is forever at your service in the Mason City territory.

DEPOSITS OVER $6,000,000

T h e F irst N a tion a l B ank
MASON CITY, IOWA

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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

September, 1924

BANKER
lilllMMIIIIlllimniHHim

iiiiiiiiiiiniiiiii

Iowa National Bank, Des Moines

The

ISi or thw ester n
Published at 555 Seventh Street, Des M oines, Iowa

Tw enty-ninth Year

CONTENTS FOR SEPTEMBER, 1924

Page
Across from the Publisher............By Clifford DePuy 12
Frontispage.......................................Blanding Fisher 14
The Little Things in Banking. . .By D. R. Wessling 15
How Bankers View Increase in Farm Prices.......... 16
The Adchequer.............................................................. 18
Omaha Stock Yards................... By J. Kessler Jones 19
Making W ills ................................................................ 20
Where Premiums Are at a “ Discount” ...................
.........................................By Edwin Bird Wilson 21
Personal Paragraphs.........................................
Iowa Bond Dealers Section.............................
Insurance Section...........................................
Farm Mortgage Section...................................
For Bankers and Their Wants.........................

44
49
55
69
72

Number 445

The Passing Show........................................................
Legal Department........................................................
Facts About New Air Mail Service.........................
F. A. A. Meeting at Richmond...................................
Ten Years A go..............................................................
Chicago to Welcome A. B. A......................................
A. B. A. Convention Committees...............................
The Battle with Political Demagogues.....................
.......................................... By Melvin A. Traylor
South Dakota News.............................................
Nebraska News....................................................
Minnesota News...................................................
North Dakota News.............................................
Iowa News............................................................

Page
22
23
24
25
26
29
30
38

73
77
81
85
87

The contents o f this m agazine are fu lly protected by copyright

THE NORTHWESTERN BANKER,

P u b l is h e d

DePuy

P u b l is h in g

C o .,

I n c .,

C a p it a l

Stock,

$100,000.00

Cl if f o r d D e P u y , P ub lish er; G. A. S n id e r , Associate P u b lish er; R . W . M o or h e a d , E ditor.
J. J. W e n Ge r t , Associate M anager; R e x V . L e n t z , Associate M anager.
M in n e a p o l is O f f i c e : Prank S. Lewis, 840 Lum ber E xchange B ld g ., P hone M ain 3865.
Ch ic a g o O f f i c e : W m . H . Maas, 1148 First
Natl. B an k B ldg., P hone D earborn 6063. N e w Y o r k O f f i c e : Philip J. Syms, 150 N assau St., P hone 483 6 Beekman.
S t . L o u is O f f i c e :
D onald H . Clark, 408 Olive Street, Phone Main 1342.
K a n s a s Ci t y O f f i c e : Glen D. Mathews, 405 R idge B ldg., P hone H arrison 5857.
E u r o p e a n R e p r e s e n t a t i v e s : The D orland A gency, Ltd., 16 Regent St., London, England, 24 B oulevard des Capucines, Paris, P rance.
Entered as second class matter at the Des Moines postoffice

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Subscription

Rates, $ 3 .0 0

per year; 5 0 cents per copy

THE

September, 1924

NORTHWESTERN

BANKER

Your Friend in All Kinds of Weather

Careful Personal Service
(T w o V ice Presidents specialising in correspondent
bank accounts)

Every Financial Facility
(Nine active departments)

Strength and Resourcefulness
(Fifty'tw o years old — Resources ten million dollars)

Io w a
$

1|® L o a n

T r u s t iM

C o m p a n y

----------- B A B T I C -----------M e m b e r F ed er a l R ese r v e S y s te m

DES MOINES

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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

BANKER

September, 1921

ACROSS THE DESK FROM THE PUBLISHER

D A N K accounts are secured
in many ways. They are
secured by advertising. They
are secured by writing letters,
and they are secured by per
sonal solicitation. But above
all they are secured and held
by the manner in which the
officers of an institution take
care of an account after it is
in the bank.
I have known banks which
have used the best advertising
copy available and have done
everything possible to secure
new customers and new ac
counts, and then after they have obtained the busi
ness I have seen them lose it because the officers
or the clerks or some other employe did not treat
a customer with just the common, every-day cour
tesy to which he was entitled.
To show you how much a few words of greeting
will do in securing business, let me tell you the
story of a personal friend of mine. He was doing
business with two banks in a good sized city. In
one of these banks he carried the business of one
firm with which he is connected, and his personal
account. In the other bank he carried the account
of another firm with which he is connected. He
carried no account in the third bank, but he knew
the president of this third bank, saw him fre
quently, liked him, but knew of no real reason

why he should be doing busi
ness with him, inasmuch as he
was being properly taken care
of in the other institutions.
One day in talking with the
president of this third bank
the president said, “ John, I
wish you would open an ac
count with us. I am not inter
ested in the amount of your
balance primarily, but I would
just like to have you doing
business with us. I would like
to have you coming in and go
ing out of our bank, and I
want to let you know that I
would appreciate very much having you as one of
our valued customers.”
As a result of this little interview John trans
ferred his personal account to this bank. The
account wasn’t very large at the time he trans
ferred it, but it grew with the months and the
years, and John is today not only a very valuable
customer of the bank, but a strong booster for
the institution.
So I say to you as a banker, don’t fail to adver
tise your institution by every legitimate method,
and also don’t fail to back up that advertising
with the personal touch and the personal word of
greeting, not only to the customers you already
have but also to those whom you would like to
have.

Express Your Opinion with Your Vote
' | 'HERE is a concerted effort being put forth to
get out the vote at the fall election. It should
have the hearty approval and endorsement of
every banker in America.
We have allowed our government to be ruled
by minorities, and all because the intelligent and
qualified voters of the nation have not exercised
their right of franchise.
As an example of the small percentage of people
who are actually voting, at the recent primary in
Illinois only 60 per cent of those eligible to vote
did so.
Regardless of party or political affiliations, every

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Federal Reserve Bank of St. Louis

citizen of the United States who has a right to
vote should do so without fail at the coming elec
tion in November.
Judge Landis, in a recent speech on this subject,
said: “ I am in favor of discontinuing the practice
of sending out automobiles to bring voters to the
polls. I know this is a revolutionary doctrine, but
I expect to live to see the day when the non-voter
will serve a jail sentence just as any other law
breaker.”
Some organizations have favored a tax of $24
a year to be assessed against each voter and paid
by him with the understanding that $12 of this

September, 1924

THE

NORTHWESTERN

will be refunded if he casts his vote at the primary, and another $12 will be refunded if he
votes at the general election.
Some such law should be put into effect so that
we can at least have the hope that 80 or 90 per
cent of the eligible voters will express their preference by the ballot, instead of 50 or 60 per cent,
as in the case in many states at the present time,
When the constitution of the United States was
written it established the right of franchise for all
male citizens over twenty-one years of age. This
same right has since been extended to the women
of the country over twenty-one years of age. Just

BANKER

imagine the cries of injustice and unfairness and
anarchy that would be made if the right of franchise were taken away from these citizens who
are not now exercising it.
Let every banker cast his vote at the coming
election and see that every one of his employes
does likewise, as well as use his influence with his
customers for the same purpose.
If more of the eligible voters in this country
express themselves concerning the vital issues of
the day there will be fewer demagogues in congress and better laws upon the statute books,
Express your opinion with your vote.

Our Agricultural Statement
TN COMPARING the financial statement of agriculture for 1923 with that of 1924 some very
interesting and encouraging factors are at once
discernible.
In any analysis of agricultural conditions it is
well to bear in mind that small grains and hay
crops make up more than 40 per cent of the value
of all crops, and these crops were well along
toward maturity by the middle of August.
One of the large middle western banks gave out
an estimate of the agricultural situation recently,
which contained some very valuable statistics on
the farmer’s financial situation at this time.
The winter wheat crop, according to the government harvest estimate,,is 589,000,000 bushels. The
states of Kansas, Nebraska and Oklahoma produced 261,000,000 bushels of hard winter wheat
this year compared with only 148,000,000 bushels
last year. The value of last year’s crop in these
three states was $119,000,000, compared with
$244,000,000 for this year’s crop.
Spring wheat is showing a remarkable yield,
In North Dakota, a state which produced 59,000,000 bushels of wheat last year, it is estimated that
the yield this year will be 92,000,000 bushels. The
price for wheat on the farms in North Dakota a
year ago was 84 cents, as compared with $1.15 or
more at this time.
It is estimated that the entire spring wheat crop

" A C A S H IE R ’S C H E C K ” for $3.00 is all that is required to secure the
A
monthly visits of the Northwestern Banker for an entire year.
Each issue
/\
contains from 108 to 200 pages of mighty interesting matter pertaining to
/
\
banks and banking interests in the territory covered by the magazine.
“ O U R C O R R E S P O N D E N T S .”
Every bank in the Northwest is invited to a place on this list. Send us items of local interest, tell us
about your bank and its growth, prospects, etc., also any other
financial news of interest to bankers in your section.
We are
always glad to hear from our friends.
" S IG H T D R A F T S ." We always carry a large “ Reserve” of good 1
will and additional service, and will promptly honor drafts made
upon same by any bank.
This department is for your special
benefit. It may be made of very great benefit to your bank. Do
not fail to avail yourself of its privileges.
/
“ A C L E A R I N G H O U S E .”
Our columns are a clearing house
for all our readers. Express your views on any topic of interest to

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Federal Reserve Bank of St. Louis

will be at least 235,000,000 bushels, as compared
with 213,000,000 bushels last year,
The value of this year’s wheat crop in the United
States, according to the best estimates, will be
$853,000,000, or an increase of $146,000,000 over
last year’s wheat crop.
The corn this year will be a short crop, due to
adverse weather conditions, but a shortness of
the crop will probably be made up by an increase
in the price. It is estimated that the crop this
year will be about 2,256,000,000 bushels,
The oats crop this year, according to the last
government forecast, was 1,439,000,000 bushels,
which is 139,000,000 bushels more than the aver
age for the previous year.
The total price of farm crops for 1923 was
$7,077,000,000 and for 1924 is estimated to be
$7,737,000,000, or an increase this year over last
year of $657,000,000. These figures include the
comparative yield and prices of wheat, corn, oats,
barley, rye, flax, potatoes, sweet potatoes, hay and
cotton.
In analyzing the financial statement of agriculture this year it is easy to see that it will be on
the favorable side of the ledger,
The betterment in the price of agricultural
products foreshadows, what we believe, will be
an increase in better business and a return to a
period of increasing prosperity.

the banking fraternity and submit same for publication. You do not hav*
to agree with us, or with anyone else. We learn things by an interchange
of ideas, and people with whom we disagree often prove valuable teachers,
be 8lad to hear from you.
“ NO P R O T E S T ” has ever been offered to the statement that the
field covered by the Northwestern Banker is the money-producing
section of the American continent, rich in hogs, cattle, com , etc.,
and dotted with thousands of prosperous banks, all doing a good
business, and the majority of them are readers of “ The North,
western.”
“ S U R P L U S A N D U N D IV ID E D P R O F IT S ” increase very rapidly with those banks, whose advertisements appear regularly in
the columns of this magazine.
Full information as to rates
and our special service will be promptly furnished on appli---- *
cation. Your business solicited and appreciated. The “ Banker” has been twenty-eight years in its present field.

.13

BLANDING FISHER
President North Dakota Bankers Association
Devils Lake. North Dakota

Blanding Fisher, the newly elected president of the North Dakota Bankers
Association, is president of the Ramsey County National Bank of Devils Lake.
He was born in Wahpeton, N. D., in 1882. Just twenty-one years later he became
cashier of the Ramsey County National, holding that position from that date,
1903, until December, 1918, when he was elected its president.
Mr. Fisher has always been an active member of the State Association.
Last year he was vice president of the association and for several years
previous he served on the executive council of that organization.

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The Little “Extra” Things That Count
in Banking Service
WORD is like a pumpkin pie;
there is nothing that delights my
palate more than pumpkin p ie;
but if I had to face pumpkin pie as a
daily diet, for breakfast, dinner, and
supper, the friendly relations between
myself and this delectable pastry might
terminate without warning. So it is with
a word; we like it, and we use it, and
hear everybody use it all the time, and
then our affection toward it cools.
Take that word “ Service.” It is on
the lips and in the mind of every busi
ness man. How hard it works! Gaso
line “ service stations” as thick as sa
loons in days gone by; better “ service
stations; ’ ’ automobile 11service stations ’ ’
in every hamlet. One groceryman ad
vertises “ Courteous Service,” his com
petitor across the street offers “ Service
that Satisfies,” and the new man on the
corner gives “ Service with a capital S .’
The shoe repair man has discovered that
he renders “ Service,” and so has the
tailor, and druggist, and laundryman.
You seldom hear of a “ Street Railway
Company” any more, or an “ Electric
Light Company” — they are “ Service
Companies ’ ’ now.
I wish we could find another noun
which would be packed full of the same
meaning as this good word 11Service. ’ ’ I
have searched through dictionaries of
synonyms in vain. Therefore, openly and
unblushingly, I want to write a few para
graphs on “ Service,” as applied to banking.
A few months ago I chanced to visit
a certain country bank in a certain Middlewestern state. As I walked up to the
wicket, the cashier lowered his spectacles,
knitted his brows, and peered at me
through the bars like a bored visitor at
a zoo. The temperature seemed to drop
thirty degrees in as many seconds.
Finally he said, “ Good morning.”
A
customer came in to make a deposit and
was greeted with similar enthusiasm. I
was not surprised when I learned later in
the day that this bank had not increased
its deposits in twenty years, although
it was the oldest bank in town.

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B y D. R . W es sling
President Lytton Savings Bank
Lytton, Iowa

“ Every bank has customers and pros
pective customers waiting just outside
the door for the invitation to take ad
vantage of some branch of its service.
It is not enough to acquaint folks with
what we have to offer. We must in
vite them to use it. The friendly banker
who sincerely feels his obligation to
render service and who invites the op
portunity to do the little extra things
which may not seem at the moment
worth while is the banker who will win !”

This, of course, is rather an extreme
example of the way a good many bank
ers used to act not so many years ago.
They must have thought of their banks
as court rooms, where they sat as judges
and where people had to come whetherthey wanted to or not.
In the last decade the attitude of the
banker toward his customers has changed
noticeably. The banker, like the grocer,
the druggist, the tailor, the doctor, has
found that he, too, is in business to ren
der service. Not only has he discovered
the truth in the Rotary motto, “ He
profits most who serves best,” but also
he has come to feel that he owes a serv
ice to his patrons and his community
whether it profits him or not.
Of course, there is no question about
the extra profit. People are generally
willing to pay for value received. The
banker who takes a personal interest in
his customers, who is willing to help them
in many little ways where no immediate
reward may be involved, will gain most
in the long run.
What a fruitful field for service the
banker has! Not just keeping a patron’s
savings and papers where they are safe;
not just making judicious loans. But,
also, guiding him with tactful sugges
tions about investments; offering him
various kinds of insurance; inspiring his
boys and girls to get a college education

and make the most of their opportunities;
showing him the necessity of making a
will.
The last point offers a good example of
the modern spirit in banking. I have
said this before, and can’t resist the
temptation to say it again. A man with
property needs to make a will; the banker,
as his business adviser, is really under
obligation to tell him so.
Without
usurping the lawyer’s place, the banker
can help him in preparation of the will.
The reward? First, the satisfaction of
having rendered a service. Second, a
favorable chance that an officer of the
bank will be named executor of the will
or that the bank will profit by increased
deposits. One banker in Iowa, with the
aid of attorneys, drew some twenty wills
in the course of a few months and was
named executor in three-fourths of the
eases.
Most bankers today feel that they
owe a service, I am sure, but many lose
heart because their customers do not en
thusiastically take advantage of the serv
ice.
To these friends of mine, I would re
peat what a banker in Minnesota related
a few weeks ago: A well-to-do towns
man would come into •this bank quite
frequently and cash a check on the bank
across the street. He was very friendly,
but never offered to open an account.
This went on for several years. Almost
every time the man would linger and chat.
Finally, one day the cashier gathered
courage and asked, with some hesitation,
“ John, why don’t you start an account
with us? We would appreciate it.” The
man looked up with a slow smile. *‘ This
is the first time you ever asked me.” He
has been one of the bank’s good cus
tomers ever since.
Every bank has customers and prospec
tive customers waiting just outside the
door for the invitation to take advantage
of some branch of its service. It is not
enough to acquaint folks with what we
have to offer. We must invite them to
use it.

THE

NORTHWESTERN

BANKER

September, 1924

H ow Bankers V iew Increase in Price
of Farm Products
Better morale already visible among farm customers and partial
liquidation of indebtedness is beginning
ITH the entire nation eagerly
watching the increase in the
price of Mr. Farmer’s products,
business men and bankers throughout the
country are asking: “ What does it
mean? Is prosperity here to stay? Just
what does the increase in prices mean
to the American farm er?”
During the past week the N orthwest
ern B anker has personally interviewed
a great number of bankers on this sub
ject. Likewise, hundreds of letters have
been sent out to banker readers, asking
for their opinion on the following ques
tions of paramount importance:

B y R . W . M o o rh ea d , E d itor

Editor’s Note— The article on this
page is the result of a survey made the
past few days among bankers of Iowa,
Minnesota, Nebraska, North and South
Dakota. It pertains to the recent in
crease in the price of various farm prod
ucts in which the whole country is so
vitally interested.

at prices in some cases twice as high as
of last year, is no small factor in putting
(1)
How much grain is left in your com a rosier complexion on the face of ag
munity from last year?
riculture.
(2)
Have any of your customers mar In answer to question No. 2, “ Have
keted any grain or live stock at the in
any of your customers marketed any
creased prices during the past thirty days?
(3)
Has the increase in prices enabled grain or live stock at the increased prices
any of your farmer customers to reduce
during the past thirty days?” the re
their indebtedness to your bank? I f so,
plies are comfortably in the affirmative.
what percentage o f their indebtedness has
The volume of sales is, of course, not
been reduced?
(4)
W hat effect has the increase in large, but at least it is something.
prices had in your community?
Question No. 3, “ Has the increase in
The replies given by bankers to the prices enabled any of your farm cus
tomers to reduce their indebtedness to
questions of this survey are surprisingly
you? I f so, what percentage of their
uniform, throughout the states of Iowa,
Minnesota, Nebraska, South and North indebtedness?” is, of course, the one of
Dakota. To the first question, “ How most interest to business in general. The
much grain is left in your community replies show a majority in the affirmative,
from last year?” came replies ranging about 75 per cent answering “ Yes.” The
all the way from “ none” to 35 per cent. percentage of indebtedness ranges from
The average is about 10 per cent, showing 1 to 15 per cent, one banker even stat
that 90 per cent of last year’s grain ing that his frozen assets had been
crop went to market long before pres trimmed down by a 35 per cent margin.
ent prices offered relief to the farmer’s However, the average seems to be slightly
troubles. However, the fact that the less than 10 per cent.
Most interesting of all, as a criterion
remaining 10 per cent is being marketed

of better times for agriculture, are the
answers to question No. 4, “ What ef
fect has the increase in farm prices had
in your community?”
Some of these
replies are as follows: “ People in bet
ter spirits and more money in the
banks;” “ Better feeling among our
farmers ; ” “ Farmers feel things are
coming their way, if only we have a
good corn cro p ;” “ More optimisom lo
ca lly;”
“ Newly created confidence
among farmers, and business seems to
feel that prosperity is here;” “ Will help
a great d eal;” “ Changing despair into
hope,” and “ Has stimulated the farm
er’s morale,” are some of the typical
answers of the bankers.
Conditions seem to be about the same
in the various states mentioned above.
However, to give the reader a clear-cut
view of how the bankers of the north
west view the increase in farm prices, in
dividual comment of various bankers is
given below, state by state :
IOWA
Fred F. Thompson, Brooklyn:
1. There is very little grain left in our
community from last year. Our imme
diate vicinity suffered from a hailstorm
last August and most of the corn that is
left over is that of those who are hold
ing it for higher prices.
2. Some grain has been marketed with
in the last thirty days, but comparatively
little.
3. Our customers have not reduced
their indebtedness to us to any consid
erable extent.

The Iowa “ Golden Ears of Corn” were never more golden than at the present price. Every Iowa farmer
wishes he had a similar pile of corn to market right now, but with good weather the next month, Iowa’s corn
crop will once again become a sure thing.

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September, 1924

THE

NORTHWESTERN

BANKER

A bumper wheat crop for 1924 is the gift of the gods to states of the northwest, including Minnesota,
the Dakotas and Nebraska. With prices as they are at present, it will be worth something, too!

4.
The farmers in our community have
had very little of their farm products
to sell since the increase in prices. About
the only effect of such increase seems to
be a better feeling, brought about by the
more favorable prospects for future
prices for farm products.
J. J. Guyer, Buffalo Center:
In reply to your first question as to
how much grain is left in our community
from last year, will say there is very
little.
As to the second question, there are
very few, if any, of our customers who
have marketed any grain at the increased
prices, but there has been some live stock
sold at the increased price during the
last thirty days. Within the last week
there has been some new oats marketed
at the increased price.
We have had no reduction of indebted
ness by our customers within the last
thirty days.
As to the fourth question, the increase
in prices in our community has created
a better feeling all along the line and
a better morale prevails. People are
looking forward to a continuation of the
better prices to enable them to get along
better than they have in the last four
years.
E. E. Sapp, Buffalo Center:
In reply to question Number 1, you
are advised that we do not believe there
was over 8,000 bushels of grain in this
community from last year when the
prices began to reach their present levels.
In reply to question Number 2, you
are advised that this small amount of
grain has been marketed at the increased
prices as well as about two or three carloads of live stock per week from this
point. Practically all of the grain which
was being held was owned by a few
speculators and not by the actual farmers.
The increase in prices has not enabled
any of our farmer customers to reduce
their indebtedness. Perhaps the only

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Federal Reserve Bank of St. Louis

effect which it has had is to place them
in a little better frame of mind; how
ever, most of them feel that it is only a
political move and that prices have been
raised after all of the grain has been
marketed.

has had in this territory so far is to bring
up the morale of the farmer. However,
if prices stay up we will have quite a
liquidation this year.
5.
What would be a great thing for
the farmer would be the reduction in
prices for commodities and implements
he has to buy, bringing them back to
near pre-war prices.

M. E. Toothacre, Burlington:
There is very little grain left in our
community from last year’s crops.
2.
Only a comparatively few have been For instance, a binder here r-ests the
farmer $275; gang plow, $130; wagon
benefited from the advanced prices of
grain and live stock for the reasons prev with box and seat, $175; drill, $200. Even
iously given in item one. In my opinion at present prices of grain these prices are
there has been but very little done as way too high. I just merely quoted a
yet to relieve the situation of the farmer, few pieces of machinery here.
and it will be necessary for these prices
Live stock marketing will be light, as
to continue on an upward trend for at in the last few years the ranchers in
least six months in order that we may this territory were forced to put on the
see any great beneficial results.
market immature stock so as to liquidate
Item 3. Absolutely no appreciable dif their loans, a great many of which were
ference for the reasons before given.
carried by Eastern banks. They are
There was no grain or live stock to be now trying to keep their young stock and
marketed. If the continued rise extends only ship stock that is really ready for
for a period of six months we will have market.
results. 4. None to amount to anything.
This country has a wonderful crop and
Should the purchasing power of the
should
be in very good shape after this
farmer’s dollar be increased along with
fall.
the increase in price, the farmer will
W. A. Anderson, Letcher:
come to his own, otherwise there is still
trouble for the future.
Various publications are very anxious
to carry good news to the public and
SOUTH DAKOTA
many are waxing over enthusiastic over
C. W. Hose, Lemmon:
the recent advance in prices and claiming
1. There is not any grain left in this benefit which has not yet accrued. The
advance in price came after the products
territory from last year. On account of
not getting credit in the East, our cus were out of the hands of the original pro
tomers are forced to sell the year they ducer, so up to this time practically no
harvest their grain in order to liquidate benefit has accrued from the rise in prices.
There was an unwarranted and rapid rise
their indebtedness.
in hog prices, most of which was lost
2. Our crops are just being harvested
now, no threshing done yet so no sales before the farmer could get his hogs on
made. Not any live stock marketed the market. Even the peak of price did
not warrant feeding 95 cent corn to hogs.
either in the past thirty days.
3. Increase in farm prices has not en You know a July price on hogs pays no
abled farmers to liquidate, as above December bills. If the present prices of
stated. Generally by the time grain is wheat, oats and corn stay where they
ready for marketing in this territory the now are until the new crop can be put on
the market, some real benefit will be
prices have dropped considerably.
realized. I f corn prices stay up, the
4. The only effect the increase in prices

THE

price of hogs must go up to make feed
ing profitable.
The banker of the Northwest has
learned his lesson and is not going to be
come over-enthused at an out-of-season

NORTHWESTERN

BANKER

raise in prices. I f prices Avili stay up,
of course liquidation will be helped and
land prices will be stablized.
George M. Townsend, Huron:
Little of last year’s crop is in the hands

September, I9::4

of the farmer, although some old corn is
being marketed at the present time.
This year’s small grain crop in our
county is one of the best ever harvested
(Continued on page 71)

AD CH EQ U ER^,
B e in g som e O b se rv a tio n s a n d
Suggestions by CRADDICk, H im se /f
Helping to “ Keep Them in School’ ’
The bank can perform a very great
service to its community at this season
of the year by taking an active part in
a campaign to encourage eighth-grade
graduates and high school students to
continue in school and acquire an edu
cation which will fit them to become good
citizens later on. With many young
people who are doubtful, it is a question
of finances. Either they want to make
their own living, or their help is needed
in contributing to their fam ily’s support.
With others, it is because they have be
come wearied of lessons and want a
change.
Reproduced herewith is copy for three
letters, one to high school students, one
to eighth-grade graduates, and one to
teachers, for the purpose of keeping the
boys and girls in school.
It should be easy to secure the co
operation of both the superintendent of
schools and of the newspaper. State
ments may be secured from leading citi
zens of the community to be published
by the newspaper. In some cases, which
come to the attention of the bank’s offi
cers, the letter may be followed by a
personal interview.
This is legitimate work for the bank
to do which will create considerable good
will and will call attention in no uncer
tain fashion to the desire of the bank to
contribute in a large way to the prog
ress of the community.
L etter

E ighth -Grade Graduates

Don’t Neglect Your Opportunity!
School will soon be starting again, and
since you have been graduated from the
eighth grade, you will be ready to go into
high school.
Of course you are going into high school!
You can’t afford not to. Even though you
have a job that pays you quite a bit every
week, it isn’t as important as the job of
getting an education that will bring you
greater success later on in life.
Four years in high school will prepare
you to earn more and to enjoy life more.
They will not be wasted. Far from it!
They will be invested. Men who have
studied the question say that a high school
education is worth thousands of dollars.
In fact, it is the best paying job you can
tackle. It will pay you back in money
and with success later on.

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Federal Reserve Bank of St. Louis

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiminiiiiiiuiiiiiiiiniiiiiiriiiiiiiiiiiiimiiiiiiiiiiiiitiiiiiiiiiimiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiii *

TELL US, PLEASE.
What particular advertising have you
done in the past three months which
proved successful and profitable in re
sults, or quite the contrary?
Tell it in three hundred words. Stress
the objective, medium used, feature or
inducement, results, cost.
Add your
own comment, opinions and advice to
your brother bankers. Communications
will be held confidential unless permis
sion is granted to use the bank’s name.
Speak freely. You may help a brother
banker to either make money— or to
save money.
Address
all communications to
“ADCHEQUER” in care of The North
western Banker.

will have to decide which you will be.
If you keep on and finish your high school
work, your chances of success will be tre
mendously greater.
Just as an example: In a large city two
groups of boys were compared to learn
what effect education had on their earn
ing capacity. One group left school at 14
years, and in the eleven years that fo l
lowed, they earned an average of $5,122.50.
The other group went through high school.
It took them four years longers, but in
the seven years that followed, they earned
$7,337.50. In other words, they earned an
average of $2,225 more per boy in seven
years than the boys without a high school
education earned in eleven years.
Does an education pay? W e’ll say it
does! Keep at it and don’ t let anything
interfere. We are for you and we want
to see you come through with flying colors.
Cordially yours,

MiiiiiiiiiuiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiimiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiimiiiiiiiiiiiiiiiiiiiii.

Uncle Sam spends a lot of money every
year to give the boys and girls a chance
to get a good education. It is more than
a billion dollars, but it is money well spent.
Abraham Lincoln didn’t have educa
tional advantages. He had to get his edu
cation under difficulties, but he got it. It
is easy for you to get a good education if
you want it.
All you have to do now is to enter high
school and make the most of your oppor
tunities. We will be interested in watching your progress and we hope you will
win out.
Cordially yours,
President.
L etter

H igh S chool Students

We Want You to Be Ready!
Some day, the business of our own city
and other cities, and of the whole nation
will be in the hands of the boys who are
now going to high school.
We old-timers will be stepping out to
make place for you. We want you to do
your work well for your own sake and for
the sake of the community and country,
so we are interested in seeing that you
get the training now that will make you
successful.
That is why we are hoping that you will
keep on until you finish high school, and
then go to college if possible.
The matter of getting an education is
becoming more important all the time.
Competition in business is keener and
higher standards are being set. The man
who has little or no education is going to
be left behind. The one who is prepared
will win out.
You would much rather be among the
leaders than among the followers, wouldn’t
you? Eight now is the time when you

President.
L etter

B e Sent

T eachers

Dear Miss Clark:
Within a short time another school year
will be under way and we are writing you
at this time to let you know that the Citi
zens State Bank is heart and soul with
you in your work.
The future progress of the community
depends largely upon the efficiency of the
schools, and we believe that Centerville is
singularly fortunate in having an excellent
corps of teachers. We realize, however,
that to make your efforts of the greatest
possible good to the community, the school
attendance must be raised as high as pos
sible.
This is a problem for all of us, and be
lieve that a concerted effort will go far
in bringing back to school this fall many
boys and girls Avho would not otherwise re
turn. We wish to offer our cooperation in
this work believing that for the good of
the community, as well as for the good of
the boys and girls themselves, they should
continue until they have completed high
school at least.
You are in a position to know of cases
where pupils are not returning. If you
will advise us, we shall be glad to do what
we can to change their decision, or per
suade their parents to send them back.
W on’t you come into the bank and talk
this over with us? Your suggestions as to
how we can help will be sincerely appre
ciated.
With all good wishes for a successful
year, and trusting that we may have the
pleasure of seeing you soon, we remain
Bespectfully yours,
Citizens State B ank ,

B y................ ............................
President.

September, 1924

THE

NORTHWESTERN

BANKER

Omaha Stock Yards Handle Eight Million
Head of Livestock Yearly
o

Great future assured for Omaha as a livestock center
O THOSE who have never visited
a large live stock market, or gone
through a modern meat packing
plant, let me suggest that a visit to the
South Omaha market will prove most
interesting, and will repay well for the
time spent, because it will result in a
keener appreciation of what this section
of our country is doing in the way of
providing meat products for the world.
For here at South Omaha, in the heart
of the great middle west, is situated one
of the greatest live stock markets of the
world. In fact, it is the second largest.
Here is where the “ western supply
‘ meats’ the eastern demand.”
Five large packing concerns have ex
tensive plants here, namely: Armour,
Cudahy, Dold, Morris and Swift, the
Morris plant being operated by Armour
& Company. Besides these, there are
about a dozen smaller local packing com
panies, who operate continuously. In
addition, the independent packing com
panies scattered throughout the entire
country have permanent buyers on this
market securing their daily needs. The
buyers representing these various com
panies provide a cash market for the
thousands of head of cattle, hogs and
sheep that are daily pouring in from
the range and farms of this entire coun
try. The term “ entire country” is used
advisedly, for live stock is consigned to
Omaha from as far east as New York,
as far west as Oregon and California,
and as far southwest as Texas. The ac
tivities at the Omaha Stock Yards are
more than local— they are of national
importance.
When you think of handling in one
year 8,500,000 head of stock (which was
the volume at Omaha for 1923), you can
readily appreciate that the task of keep
ing the market moving along smoothly,
without jams or mix ups, calls for the
best in organization and training of the

By J. Kessler Jones
Assistant Cashier The P ackers N atonal Bank
Omaha, N ebraska
great army of employes. The market
may be divided broadly into three parts:
The shippers represented, as they usu
ally are, by the commission firms to
whom the stock is consigned for sale.
The buyers, made up of the local pack
ing houses, the buyers for outside pack
ers, the speculators and feeder buyers,
and
The Union Stock Yards Company.
To this we might add a fourth, the
government agency, which looks after
brand inspection, disease, quarantine, etc.
Every morning bright and early sales
men for the sixty odd commission firms
are out looking over their pens to see
what has come during the night, and to
be ready for trading at 8 o ’clock, when
the market opens, and when the buyers
usually start in to fill their daily quotas.
The trading is most unique and inter
esting in the way it is carried on be
tween salesmen and prospective pur
chasers. The most remarkable part of it
is that after the usual dickering the
consummation of the deal in many cases
is made without even verbal assent, and
in no cases is there a scratch of the pen
to constitute a contract. Deals are made
oftentimes by a significant crack of the
whip, or a certain gesture or wave of
the hand understood by all traders at
the yards. It is remarkable that in the
sale of millions of dollars worth of stock
in this manner that there is scarcely
ever a dispute over the contract of sale.
This certainly speaks very highly for
the honor found in the men and firms op
erating at the yards.
The commission men are the indepen
dent selling agencies at the market, and
their chief concern is the proper han

Panoramic view o f the South Omaha stock yards.

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dling of their client’s stock and the se
curing of the most satisfactory prices
available.
Their returns for services
rendered is in the form of a commis
sion for the selling or the purchasing.
While these commission firms sell prac
tically all of the live stock, it should be
remembered that the Omaha market is
“ open” and that anyone can ship stock
here and sell it himself, if he wishes to
do so.
The Union Stock Yards Company is
concerned entirely with providing the
physical equipment of the market; that
is, the yards, feed, water, the exchange
building where the commission firms,
telegraph companies, etc., maintain of
fices, and the railroad switching facili
ties. In fact, this company operates as
a great live stock hotel.
The South Omaha market was estab
lished in 1884, and, since that time, has
been making a consistent and steady
growth from year to year. Since its
establishment, 248,000,000 head of live
stock have been handled here, and it is
significant to note that 8,500,000 head
were received in 1923 alone. The first
six months ofl 1924 indicates a still
further increase for this year. At this
date, the Omaha market is 1,000,000 head
in advance of its nearest competitor for
second place among the live stock mar
kets of the country.
Live stock received in South Omaha
in 1923 sold for $250,000,000, or an av
erage of about $800,000 per day. With
the last named amount being paid out
every business day of the year, you can
readily appreciate the importance of our
market to the general trade condition of
this territory.
The bulk of this live stock is slaugh
tered here at Omaha, and shipped east,
west, north and south. In fact, Ameri
can packed meats are found in prac
tically all parts of the world. Of the

Through this great livestock center millions o f head o f livestock pass yearly

THE

entire output of Omaha industries, the
meat products comprise fully one-half.
The banks of South Omaha also have
an important role in the market in act
ing as agents for the outstate banks in
the collection of live stock proceeds, look
ing after delayed shipments, etc. The
careful and intelligent handling of this
business is a highly specialized work, and
requires much experience and training.
The banks also, because of their close
association with the live stock industry
and realization of its importance, have
a considerable part in financing the
growers and feeders of this section.
The above briefly shows how large a
factor the live stock industry is in the
general well being of the middle west.
Through the Omaha market there flowed
eight and one-half million head of live
stock during the past year with a pros
pect of an increase over that number in
1924. To the extent that this live stock

NORTHWESTERN

BANKER

was marketed by the growers and feed
ers at a profit or loss, is our prosperity
or lack of prosperity measured to a very
large extent. The stock yards company
realizing a still further growth of Omaha
as a live stock center is now in the midst
of a very extensive improvement pro
gram entailing a great expenditure of
money. This includes new Exchange
building, viaduct 70 feet wide, extending
over the entire yards and additional
yardage facilities. The program also
calls for a new and complete truck un
loading division where stock can be un
loaded directly from the viaduct. This
improvement is, without doubt, the most
complete of any in the United States in
its convenience and capacity for han
dling the tremendous volume coming to
the market in trucks. The next ten years
will, no doubt, see as great an advance
in the improvement of this market as
we have seen in the past decade.

The Importance o f Making a
W ill
HE First National Bank of Lincoln,
Neb., has been doing some very
practical local advertising under the
direction of C. F. Snyder, advertising
manager. The cut on this page, headed
“ Friends for Over Fifty Years” is an
illustration of simplicity and directness
in the bank’s appeal to the public.
Under Mr. Snyder’s direction, the
First Trust Company, which is affiliated
with the First National, recently put out
an attractive booklet entitled “ Descent
and Distribution of Property in Ne
braska,” showing how property is dis
tributed in that state where no will is
made. Under the heading “ Your Wishes
or the State’s ? ” the booklet says:
“ One of the most important rights
given by the state to a person owning
property, real or personal, is the priv
ilege of making a will, and yet so many
fail to take advantage of it.
“ In many cases this neglect is due to
procrastination. Others are due to un
familiarity with the Intestate Laws.
Superstition or the unpleasantness of
the task cause some to delay.
‘ ‘ Others hesitate because they feel that
it is a document which exists for all
time. This is a wrong idea. A person
may make a number of wills, each of
which in succession should, by its terms,
revoke and cancel all prior wills.
“ The enclosed chart will enable you
to familiarize yourself with the distribu
tion of your estate on not leaving a
will. Study it carefully. Bear in mind
that the only way to keep these laws
from applying to your estate is to have
a will prepared.
“ I f you find that the provisions of
these laws are not in accordance with

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Federal Reserve Bank of St. Louis

your wishes, consult your attorney and
have him draw up your will— then con
sult the officers of our Trust Depart
ment in regard to its services as Execu
tor or Trustee of W ills.”

Friends for Over Fifty Years

To have such staunch friends is a
fact of which we are justly proud.
It is a recommendation that speaks
JOHN P THOMPSON
This lasting friendship we cherish
and the thought that our services,
all this time, have been so satis
factory, so pleasant as to retain
their patronage, is sufficient re
ward for our efforts
Surely 50 years is long enough for
merit to be discovered or ineffi
ciency to be uncovered
It is our greatest wish that 50 years
hence many of our present custom
ers may have the same friendly
feeling toward this institution as
these three old friends now have.

THE FIRST
NATIONAL BANK
HENRY VE1TH

OF LINCOLN NEBRASKA
ORGANIZED 1871
Capital and Surplus $1.050,000 00

Below a chart showing the distribu
tion of property under various condi
tions, the following comment is made :
1. This chart indicates the way your
estate would be distributed under the
law as it is now, January 1, 1924—
what the law will be when you die,
no one can tell.
2. The law provides for distribution
of estates as it provides for personal
conduct, and it is as expedient not to

September, 1924

come into contact with the one as with
the other.
3. By Will you can distribute your
property as you wish, whatever the
law may be when you die.
4. I f you die without a Will, some
one else will select the manager of
your estate.
5. By a Will you can select the man
ager of your own estate.
6. By a Will you can preserve your
estate in trust for your heirs for any
length of time that you may wish.
7. The law will distribute your prop
erty immediately after you die.
8. The law will distribute your prop
erty according to the ideas of the leg
islators.
9. By a Will you can distribute your
property according to your wishes and
your own ideas.
10. When you make a Will, be as
prudent as if you were building a
house, and get some one to make it who
knows how to do it. Employ the serv
ices of a reliable attorney.
11. Make a Will. Distribute your
property yourself.
12. Appoint the manager of your
own estate. Your wishes will prevail.
Your property will be safe. Your
loved ones will be protected.

Southwestern Bankers Journal
Becomes DePuy Publication
Effective in August, the Southwestern
Bankers Journal, of Houston, Texas, be
came a member of the DePuy Publica
tions, headed by Clifford DePuy, presi
dent, Des Moines, Iowa. Through this
addition to the DePuy magazine fam
ily, the group now numbers four banking
and two insurance journals, including
the Northwestern Banker, Des Moines;
the Mid-Continent Banker, St. Louis; the
Trans-Mississippi Banker, Kansas City;
the Underwriters Review, Des Moines;
the Insurance Magazine, Kansas City,
and the Southwestern Bankers Journal,
Houston.
H. Lawson Hetherwick, editor and
publisher of the Southwestern Bankers
Journal, retains these positions and a
substantial interest in the magazine. He
will devote his entire time and energy to
broadening the scope of service rendered
Texas bankers by the journal.
The Southwestern Bankers Journal is
the oldest financial journal in the South.
It was established twenty-four years ago
and is devoted primarily to the interests
of Texas bankers.
Publication offices of the journal will
be moved to Fort Worth in the near fu
ture so that the magazine will be more
centrally located and thus better serve
its many readers and advertisers.
Happiness is that single and glorious
thing which is the very light and sun of
the whole animated universe; and where
she is not it were better than nothing
should be.— Colton.
A man used to vicissitudes is not
easily dejected.— Johnson.

September, 1924

THE

NORTHWESTERN

BANKER

W here “Premiums" May Be at a Discount
CHROMO with each order, was
the “ clincher” used by salesmen
for a former generation to get
business. A set of books with a subscrip
tion to a magazine was the accepted
method of building up circulation. Cloth
ing stores would “ give aAvay” a watch
and chain with each suit of clothes
bought.
Nowadays the enterprising merchant
or publisher knows that people want—
most of all, full value for their money
in the goods they are purchasing, not a
' ' chromo ’ ’ thrown in to make up for pos
sible deficient quality of the goods.
Bankers often try to boost business by
giving some premium, which is likely to
be “ discounted” by the customer.
There are exceptions and I want to
be entirely fair, while plain spoken, and
entirely truthful. It sometimes happens
that a banking institution is so dis
criminating in the selection and distribu
tion of premiums or souvenirs as to de
rive considerable benefit in good will and
to obtain some new business.
Viewed purely as a good-will builder,
an appropriate gift at an appropriate
time to the right customer may be val
uable to a bank. It is a delicate matter,

By Edwin Bird Wilson
New York
however, to discriminate as between cus
tomers, and any discrimination is liable
to cause bad will instead of good will.
On the other hand, it costs a lot of money
to give every customer and “ prospect”
a souvenir good enough to be appreciated.
As a general rule, the same amount of
money would obtain bigger results in
good will, prestige, confidence and new
business if spent through the established
mediums of advertising with copy that
“ sells” the bank to the public.
When you come right down to funda
mentals, what gets a new customer for
a bank? The belief on the part of the
man or the woman that the bank has
something he or she needs in the way of
financial service and protection.
What holds old customers? The be
lief that the bank is giving them as good
financial service and protection, on as
good terms, as they can get elsewhere.
Will the gift of a celluloid hobby-horse,
or a leather thing-um-bob, or a gilded
calf, confirm that belief? My judgment
is that it will not.

I f you have to give a premium to get
business, let it be ‘ ' an extra measure of
service.” No one will throw that into
the waste basket or the ash can.
I must confess that I am now carrying
in my pocket two very nice leather let
ter cases, one received from a bank, the
other from a publication, and that I find
them very useful and am grateful to the
donors. But I don’t do business at that
bank, am not in a position to do so, and
I don’t subscribe to nor advertise in that
periodical.
The average bank has so small an ap
propriation for advertising, compared
with commercial advertising appropria
tions, that every dollar should be spent
as efficiently as possible.
The most efficient way to invest a bank
advertising appropriation is to tell con
stantly the news of the bank’s useful
ness through the well tested, established
mediums, such as newspapers, pamphlets,
letters and car cards. That kind of ad
vertising, intelligently done, will do more
to get new customers and hold old ones
than any irrelevant premiums that can
be offered.

“Restitution— a Breeder o f Bank Crooks"
HE Chicago and Cook County Bank
ers Association, in a recent bulletin
to their members, touches upon a
point of special interest to bankers—the
problem of “ Restitution.” Under the
heading “ Restitution— a Breeder of Bank
Crooks,” the bulletin comments as fol
lows :
“ During the month of July several ap
peals were addressed to this office asking
that the Association lend its assistance to
efforts being made to effect settlements in
a number of cases in which member banks
had been defrauded. Without exception
these requests were refused. To justify
our apparent lack of sympathy for the
man who errs and to convince those in
teresting themselves in behalf of the
wrongdoer that we do realize that it is
quite human to take a false step, we at
tempted in each case to explain our re
fusal. Firmly believing that the practice
of accepting restitution is the greatest
single factor in the rapidly increasing
number of successful attempts made to
defraud banks, we repeat our explanation
in detail.
“ Early in the spring Chief of Police
Collins, Chief of Detectives Hughes and
State’s Attorney Crowe were interviewed
in the hope of securing their greater co
operation in the apprehension and proper

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Federal Reserve Bank of St. Louis

punishment of bank crooks. Each of
these officials promised increased efforts
but in doing so they suggested that a rigid
policy of 'N o Restitution’ upon the part
of the banking fraternity would reduce
bank crimes materially. Knowing some
thing of the exasperating continuances
and other aggravating incidents usually
encountered by every banker when at
tempting to prosecute a bank defrauder,
we were inclined to doubt the restitution
theory of correcting the situation. Chief
Hughes maintained that the accepting of
cash settlements had become so general
upon the part of bankers and merchants
that the Detective Bureau could easily be
renamed ' Chicago Collection Agency. ’
Individual cases were mentioned where
weeks had been spent in running down
clues and in apprehending the criminal,
sometimes necessitating the sending of a
man half way across the country to bring
the crook back to stand trial, only to see
the same crook go scot free because the
person or firm defrauded had accepted
restitution.
“ Since these interviews a study has
been made of a number of bank cases,
several of the crooks have been talked to
and in other ways information has been
gathered, all for the purpose of reaching
a decision on the restitution problem. It

is a well known fact among those who
prey upon financial institutions that Chi
cago bankers are especially susceptible to
pleas of restitution. As a result their
mental process, when contemplating a
Chicago job, is: 'I f I can cash this bogus
check (if a check artist) and get away
with it— fine; if luck breaks against me
and I am caught afterwards, all I ’ll have
to do is to return the jack.’ Is it any
wonder that literally hundreds of suc
cessful attempts are made each year to
defraud Chicago banks ? And we can rest
assured that there will be no worth while
decrease in the number of these attacks
upon us until everyone emphatically de
clines all tenders of restitution.
“ It is true that there are many cases
where extenuating circumstances would
prompt leniency and make more difficult
the refusing of offers of settlement. How
ever, the situation has become so acute
that we must put from our minds, for
some time at least, any thoughts except
a firm decision that proper punishment
must follow each attempt to defraud,
whether successful or not. Two motives
are apparently back of every restitution
acceptance—the first an erroneous belief
that it is good business to recover one’s
losses whenever possible; the second a
(Continued on page 65)

THE

NORTHWESTERN

BANKER

September, 1924

........................................................................................................................................................................................................................... .
§

s s in g

o w

................. ..................................................limn........i...... i................................................................ ........................................... iiiiiim......... ...................................... ....................................... .......................................................... iminiunmi.........

AN ALERT YOUNGSTER
IN THE ARMS OF THE LAW
W H AT THE A IR MAIL
SERVICE MEANS
A GOOD PRAYER

has been going to Whitefish lake for fif
teen years, and it was his custom to pay
for his fishing license at the time he paid
his bill at the end of his stay. How
ever, this year an officious game warden
made the Des Moines man row ashore,
confiscated his tackle and rod and haled
him before a justice who taxed him $10
and costs.
Reports are that the banker’s com
panions have kidded him unmercifully
ever since the incident happened.

A BANKING CODE
A BANK’S WINDOWS

Harry Herman, young newsboy at
Burlington, Iowa, has won the reputa
tion of being the most alert young busi
ness man in his community. The Prin
cess Theater of that city had arranged
through Vice President Clarence T.
Simmons of the First Iowa Trust and
Savings Bank that each patron of the
theater during a certain week might be
entitled to one dollar on a savings ac
count at that bank if he or she was one
of the first fifteen to greet Mr. Simmons
at the bank on a certain morning.
Most of the two hundred who brought
their tickets to the bank on the specified
day were satisfied to wait outside until
the regular opening hour, some of them
arriving as early as 7 o ’clock. Not so
with young Harry. He waylaid Mr.
Simmons when the latter started to work
at about 7:30 and accompanied him to
the bank. It is Mr. Simmons custom to
enter at the side door and when he and
Harry arrived there they found half a
dozen others who were waiting there.
This group received their deposit books
and went on their way.
The remainder, who formed a goodsized crowd by the time the bank
opened, were forced to scramble for the
remaining eight accounts. Almost 200,
nearly all under 14, called at the bank
looking for Mr. Simmons.
The value of cooperation is shown by
the fact that there were four pairs of
brothers and sisters in the 15 new de
positors.
Friends of George Richter, vice presi
dent of the Capital City State Bank of
Des Moines, are having a good laugh
over the predicament which the banker
got into while on a fishing trip at Whitefish lake, Minnesota.
According to the story, Mr. Richter

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Federal Reserve Bank of St. Louis

The new night flying schedule of the
air mail service between Omaha and
New York, is saving Sioux City banks a
total of $155,600 each month, according
to figures furnished by Mrs. Ethel Brostrom, manager of the Sioux City Clear
ing House Association.
Of the thirteen banks in Sioux City,
six send an average of $830,000 monthly,
and seven send an average of $400,000
monthly to New York, making a grand
total of $7,780,000 being carried from
Sioux City to New York each month.
The saving is due to reduction in in
terest charged Sioux City banks. The
air mail schedule makes possible saving
of one day’s interest on items clearing
through the Chicago clearing house and
two day’s interest on clearances in New
York. The total saving is estimated at
2 per cent which will amount to $155,600
a month, or $1,867,000 annually.
“ C. F. Butler, a prominent banker of
Springville, ’ ’ notes the Cedar Rapids Re
publican, “ has some unique ideas which
he puts into practice as frankly as does
Everett True. Mr. Butler is a friendly
soul and an interesting one as well.
“ He is a philosopher whose ideals
about praying would give some of the
most novel ‘ isms’ or creeds a new slant
on rules and principles of prayer. Fol
lowing is his prayer for today:
‘ ‘ ‘ Oh, Lord, help me keep
My damn nose out of
Other people’s business. ’ ’ ’
It is not often that one comes upon a
prayer in the hurly-burly of life, on the
street corner, so to speak, which moves
one to pause and give endorsement with
a resounding “ Am en!” But Mr. But
ler’s prayer is such a one, and it is to
be hoped that it will have a large cir
culation and be on the lips of thousands,
morning, noon and night.
A banking code for Iowa bankers may
soon be adopted and given wide publicity,
if favorably acted on by the Executive

¡
5

Council, as the result of the report of
the committee on banking ethics at the
Mason City convention in June. In
corporated in the committee report were
some of the following interesting sug
gestions on ethics:
“ A bank should give efficient, skilled
service to depositors and borrowers.
“ Honesty and truth should be the
banker’s code at all times and his char
acter, general conduct and dealings such
that he is not open to attack.
“ Dignity without arrogance should be
one of the banker’s characteristics.
“ The solicitation of business by banks
should not be too eager. I f too much
pressure or persuasion is used in obtain
ing business it puts the banker at a dis
advantage when the customer applies for
accommodations.
“ Advertising by banks should be dig
nified, conservative and moderate in
volume.
“ The banker ought to be a student of
finance and of general business condi
tions. The more he knows about bank
ing and business history and practices
and current conditions, the better he
will be prepared to manage his own in
stitution and be of service to his patrons.
“ The Golden Rule and the Ten Com
mandments should serve as a good code
of banking ethics.”
Members of the committee that sub
mitted the proposal were: J. M. Dinwiddie, Cedar Rapids; E. J. Engledinger,
Amps; H. C. Taylor, Bloomfield; A. M.
Price, Dewitt; and F. A. Schuetz.
Lawler.
Some banks use their windows for
lighting purposes only, while others use
them for profitable advertising. The
windows of the First National at Ham
burg, Iowa, are usually a good example
of the latter. For example, during the
month of June, the bank had a novel
miniature June wedding transpiring in
its windows, with a blushing bride, long
veil, nervous groom, the minister, piano
and everything portrayed therein.
Ralph Miller, assistant cashier of the
Leavitt and Johnson National Bank of
Waterloo, Iowa, was one of the fortu
nate bankers of the Middle West who so
timed his European visit to enable him
to witness the sight of a century— the
Olympic games in Paris. In view of the
brilliant American triumph in the Olym
pics, Mr. Miller must have had a most
enjoyable tour.

September, 1924

THE

NORTHWESTERN

BANKER

Facts A bou t the State Taxation o f
National Banks
HIS question has been brought be
B y the Legal Department
fore the courts many, many times
in the various states. A brief re .luiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiuiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiimiti
view of the subject will be covered in this
Questions of interest to bankers are
article.
discussed in this department and any
One of the earliest cases was decided by
subscriber has the privilege of writing
the United States Supreme Court in 1918.
for information and advice on legal sub
The noted jurist, Chief Justice Marshall,
jects. He will receive a direct reply
from our attorney withont fee or ex
wrote the opinion. It declared that state
pense. A brief of any subject involv
governments have no right to tax any of
ing research in a complete Law Library,
the constitutional means employed by the
will be furnished for $10.00. In writing
government of the United States to exe
for information, kindly enclose a 2-cent
stamp for reply and address “ Legal De
cute its constitutional powers. That a
partment,” care Northwestern Banker,
state, within which a branch of a bank
Des Moines, Iowa.
of the United States may be established,
can not tax that branch. This principle, •iiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiuiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiKiiiiiiiii
it was held, would not extend to a tax
individual citizens of such state. The
paid by the real property of the bank of
the United States, in common with the Act also provided that the real estate
other real property in the particular state, of the banks was not exempt from state
nor to a tax imposed on the proprietary taxation to the same extent, according
interests which the citizens of that state to value, as other real estate is taxed.
The fact that there are no state banks
may hold in that institution, in common
with other property of the same descrip in the particular state does not deprive
tion throughout the state. The fact, that the state of the right to tax shares of
the Act of Congress establishing the Bank the national banks in the hands o f in
of the United States did not expressly dividual citizens, but where there are
declare that it was to be exempt from state banks and they are exempt from
state taxation, did not prevent the court taxation or taxed in some other manner
from implying such exemption, if neces than on their shares, a tax on national
banks shares is invalid.
sary to the operation of the bank.
The object of the restrictions in the
To tax its facilities, its trade and oc
cupation, is to tax the bank itself. To National Bank Act being solely to pre
destroy or preserve the one, is to destroy vent discrimination, it follows that the
or preserve the other. But, as held in the states are not restricted to a particalr
case decided in 1918, the real property mode of assessing taxes on national bank
of the bank might be taxed in common shares. Former decisions had held that
with other real property—without dis state taxation of national bank shares
crimination, and interests in the bank was in the nature of a royalty on their
owned by individuals were taxable, al nominal value, and that they could not
though taxing them might result in driv be valued for the purpose of taxation at
ing stock out of the state. It has been an amount above their par value. The
decided that the state’s authority has the power of the state to tax such shares at
right to draw on the sources of the wealth their actual value is now well settled.
of its citizens to support and defray the This may be taken to mean current value
expenses of government. The question in the market where the bank is located.
brought before the court was whether
Shares in a national bank are species
the imposition in question was in good of intangible and incorporeal personal
faith a tax, or whether, under the guise property, but the law creating them had
of tax, a penalty was intended to be in power to separate them from the person
flicted with a view to suppress the bank. of their owner for the purpose of taxa
The foregoing decisions were made by tion and to give him a situs of their own.
the court prior to the authorization of
Such shares may be taxed by the state,
national banks, as they are now created at the place where the banks are located,
and organized. In the National Bank without regard to the domicile or resi
Act of 1863, Congress did not make any dence of the shareholder. They cannot
provision about taxation, but in the be taxed by any state except that within
Amendment of 1864 it was provided that which the bank is located. Thus, shares
the Act should be construed to prevent of a national bank located in Chicago,
all the shares from being taxed under and owned by a resident of Omaha, can
the state authority at the place where not be assessed to the owner in Nebraska.
such bank is located and not elsewhere,
In ascertaining the value of the shares,
but not at a greater rate than is assessed taxing officers may include in their es
on other moneyed capital in the hands of timate all reserve funds, profits, earnings,

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Federal Reserve Bank of St. Louis

and other values.
The surplus fund
which a national bank is required to re
serve from its net profits is not to be ex
cluded in the valuation of its shares for
taxation, if, by the laws of the state,
the tax upon the shares in state banks
is fixed at a certain amount for shares
of a certain value. The tax on shares
in a national bank cannot be higher than
that, because the shares are more valu
able on account of undivided profits.
But the fact that state banks may di
vide up their surplus while national
banks are required to retain a proportion
of theirs which may increase the value
of the shares, does not make a tax on the
full value of the shares illegal.
In one case it is decided that dividends
from national bank stock are not sub
ject to state income tax, tax having been
paid on the stock.
As we have seen, the taxation of real
estate of national banks by the states is
expressly permitted by the National Bank
Act. Such property is subject to taxa
tion in the township where located.
Such real estate should be assessed as
realty, and not as a part of the capital
stock of the bank.
It has been held that where shares of
national bank stock are subject to taxa
tion in the hands of the owners, an ad
ditional tax assessed upon the banking
offices and on land held by the bank, law
fully owned and occupied as its place of
business, by a national bank, constitutes
double taxation, and that the latter as
sessment is void.
This is on the argument that ‘ ‘ the
aggregate capital stock of any corpora
tion is but the representative of its en
tire property, including the corporate
franchise, and the actual cash value of
the former depends wholly upon the pro
ductive character and real cash value
of the latter. Intrinsically, it possesses
no value, and can have none, as separate
and distinct from the corporation prop
erty it represents; nor is the property,
character, or value of such stock in
creased, or in any way affected by its
division into a given number of shares,
unless the proposition be conceded that
all the parts are greater or less than the
whole. Each share but represents pro
portional interest in the corporate prop
erty, determined by the exact ratio ex
isting between it and the entire stock,
and it possesses a like corresponding
value. Sever the connection between the
stock and the shares comprising it on
the one hand, and the corporation and
its property on the other, and nothing
remains of the former but a mere shadow,

THE

to which no real property or commercial
value can be imparted by any legislative
device whatever.”
The mere fact that part of the banking
building is rented by the bank to others
who use it for other than banking pur
poses, does not render the foregoing rea
soning inapplicable nor subject such
rented portion to separate taxation.
The taxation of national banks, with
all other banks, upon their real and per
sonal property and also upon their fran
chises to be assessed by subtracting the
value of the tangible property from the

NORTHWESTERN

BANKER

value of the capital stock, has been held
to be valid.
Personal property of a national bank
cannot be assessed to it by the state for
purposes of taxation. This includes the
furniture, safe, cash, bills discounted,
notes, bills, bonds and mortgages.
There is one case which holds that na
tional bank notes are obligations of the
United States Government, and exempt
from taxation. However, in another case
it is stated by way of argument that
the state, until forbidden by Congress,
has power to tax national bank bills.

September, 1924

The court held that until Congress for
bids, the state has the right to tax the
circulation of national banks without re
gard to whether these bills or notes are
obligations of the government, the right
of a state to tax them is extremely doubt
ful.
Congress having permitted the
states to collect a certain character and
amount of taxes on the shares and real
estate of national banks would seem by
strong inference to have intended to re
serve to itself exclusive power over the
(Continued on page 66)

Facts A bout the New A ir Mail Service

One of the many 500,000,000 candle power beacon lights that
are located at regular intervals between New York and San Fran
cisco to guide the air mail pilots at night. These faithful beacon
lights are the backbone of the air mail service.

AVINGS in time of from 6 to 72
hours has been effected in the trans
portation of a considerable portion
of the nation’s mail by the day and night
airplane service between New York and
San Francisco. At present, the fastest
possible mail train service westbound be
tween oceans is 86 hours; the air service
requires 34 hours and 45 minutes elapsed
time. Eastward, between oceans, the train
service is even slower, requiring, with
connections, 120 hours. But eastward,
due to prevailing favorable winds, the
elapsed time required for a mail-laden
plane to traverse the continent is but 32
hours and 5 minutes. In each case, lib
eral stopovers at division points and all
principal rail junctions, ranging in dura
tion from 15 to 20 minutes, have been
included in the schedule.
Second Assistant Postmaster General
Paul Henderson has made the following
statement:

service which will be available, not only
to people in New York, Cleveland, Chi
cago, Omaha, Cheyenne, Salt Lake City,
Reno and San Francisco— the actual line
of flight—but to users of the mails in a
broad belt extending 250 miles or more
north and south of the air line.
“ Some idea of the extent to which
acceleration by airplane should be felt
may be had from knowing that, by co
ordinating air schedules with the rail
way mail service, and supplying local
postmasters with this information, busi
ness men in Boston, Hartford, Phila
delphia, Baltimore, Washington, Pitts
burgh, Buffalo, Detroit, Milwaukee, In
dianapolis, Cincinnati, Minneapolis, St.
Paul, St. Louis, Kansas City, Denver,
Los Angeles, Portland, Ore., and Seattle,
may intelligently avail themselves of all
the speed that it is possible for modern
transportation to provide, including rail,
water and air.

“ Congress appropriated $2,750,000 for
the day and night transcontinental air
mail. It is the intention of the post
office department to provide a practicable

“ In the territory above indicated will
be found more than 50 per cent of the
total population of the United States
and easily the greater bulk of its agri

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Federal Reserve Bank of St. Louis

cultural, commercial, industrial and fi
nancial activities. The Atlantic Coast
can save at least half a business day in
the flight to Chicago. In some instances,
if the mail catches the plane leaving New
York at 10 a. m., an entire business day
may be saved to points along a line
drawn north and south through Chicago.
“ By coordination with early night
trains north, northwest, south and south
west, out of Chicago to Minneapolis, St.
Paul, St. Louis, Kansas City, etc., from
one day to a day and a half will be
saved. The further the distance, the
greater the acceleration which the air
will provide. There are important min
ing points in the northwest and agricul
ture and live stock centers in the south
west that can actually be brought 48
hours closer to the centers of trade and
finance in Chicago and New York. On
the Pacific Coast, runs from 66 to 72
hours will actually be cut from the exist
ing time. Coming eastward from San
Francisco the proportionate savings in
time will range from 12 hours to as high
as 98 or 100 hours.”
The postage required is eight cents an
ounce, or fraction thereof, for each zone
or paid; o f zone, in which mail is carried
by plane. There are three zones— Chi
cago - New Y ork; Chicago - Cheyenne;
Cheyenne-San Francisco. Although spe
cial air mail stamps, now being sold in
denominations of 8, 16 and 24 cents, are
preferable, they are not required. Ordi
nary stamps to the necessary amount
may be substituted. Air mail letters may
also bear the special delivery privilege,
providing fee in stamps is affixed.
Offices not located on the air mail
route may dispatch by rail to connect
therewith. For example: Philadelphia
may dispatch to Los Angeles: by rail
to New York or Cleveland, thence by air
to San Francisco; thence by rail to Los
Angeles. Denver may dispatch to Los
Angeles or Philadelphia: by rail from
Denver to Cheyenne; by air to San Fran
cisco or New York; by train San Fran
cisco to Los Angeles, or New York to
Philadelphia.

September, 1924

THE

NORTHWESTERN

BANKER

Financial Advertisers Plan Great
Convention at Richmond
Historic buildings and spots in Richmond vicinity offer attractive features to delegates
attending Financial Advertisers Association Convention, October 14-16

HILE members of the Finan
cial Advertisers’ Association,
who attend the annual conven
tion to be held at Richmond, Virginia,
during October realize that American ad
vertising and to a large extent American
business and banking originated close
to the convention city, it is probable
that these enterprises will hold much
less interest for delegates than will a
number of other factors which have con
tributed largely to Richmond’s popular
ity as a convention city.
Virginia’s climate will add to the en
joyment of the delegates, for October is
one of the most delightful months of
the year at Richmond. Jack Frost’s
army of painters, working in the eve
nings with deft, light touches, will have
begun their work of transformation, add
ing yellow, orange and crimson hues to
the still deep-green foliage. The days
will be mild and pleasant with just suffi
cient snap in the air of an evening to
make sleep a delight. Those delegates
who come by motor, as many do, will
find their trip an unusually delightful
one at this time, and roads over which
they may spin in comfort at the maxi
mum speed.
But all delegates will revel in the
numerous beauties of the ancient Vir
ginia capital and the age-old places there
that have been so closely associated with
historical events, with the lives of
America’s most notable men and women
and in which buildings have developed
courses of action that have played mam
moth parts in southern and national de
velopment. It is in these places that
a majority of Richmond’s thousands of
annual visitors show a pronounced in
terest.
Delegates cannot obtain from their
Richmond visit either the fullest benefit
or the greatest pleasure unless they visit
them and, in doing so, come to know the
modern Richmond, striking in its many
beautiful and magnificent buildings, its
broad shady streets and boulevards, spa
cious parks and delightful drives. Only
then will they appreciate the appeal that
the Virginia capital exerts as a resi
dential and convention city, why it has
been known almost entirely as such until
recent years and, receiving, come to un
derstand the hospitality which guests of
a single visit remember long after time
has dimmed the memory of Capitol
Square beauties or the curious war relics
of the Confederate Museum.

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Possibly not the largest but un
doubtedly one of the most interesting
conventions of the year, is the annual
meeting of the Financial Advertisers
Association, which will be held this year
at Richmond, Va., October 14, 15 and
16. in addition to a splendid program
already arranged, delegates will find at
and near Richmond a wealth of features
of great historical interest. These are
described in detail in the article on
this page.— E ditor’s N ote.

The headquarters of the Financial Ad
vertisers’ Association convention will be
at the Jefferson hotel, a hostelry famed
throughout the nation for its beauty,
service and home life atmosphere and
which never failed on holidays, in the
time of a no-distant past, to send to each
guest, with the compliments of the man
agement, the incomparable Virginia ju
lep.
Times and manners may have
changed through necessity, but the spirit
which prompted that hospitality lives on.
No better place could be found from
which to start upon a tour of the city’s
interesting and beautiful places. The
tour, which usually is arranged for all
convention delegates, will take them for
a sixty mile drive through the city and
its suburbs for visits to the more im
portant places, some of which are men
tioned below.
Capitol Square
Capitol Building : Designed by Thomas
Jefferson, the original model on display
there; Aaron Burr trial held here; most
important legislation of Reconstruction
Days enacted here; Colonial furniture,
used in old House of Burgesses and by
famous Virginians on display; many fa
mous paintings and statues, including the
Houdon statue of Washington— “ The most
valuable piece of marble in America” —
exhibited; exhibit of Virginia’s timber,
mineral and agricultural resources.
State Library: Contains what is con
sidered the most valuable collection of
Virginia and southern historic documents
in existence; these with the valuable and
large library make it an important place
of research for students and writers of
historical books; valuable paintings.
Governor’s Mansion : Beautiful grounds
surrounding the Mansion which is an ex
cellent type of the best architecture in
1811; occupied by. Virginia governors
since that time.

State Office Building: New, housing
all state departments.
Old Bell Tower: In former days, meet
ing place in times of emergency; guard
house and place for storing munitions.
Monuments: Crawford’s equestrian
statue of Washington, dedicated in 1850
in presence of three American executives;
Henry Clay statue; Stonewall Jackson
statue; Dr. Runter McGuire statue; Gov
ernor William Smith statue; General An
drew Lewis, George Mason, Thomas Nel
son, Patrick Henry, Thomas Jefferson and
John Marshall statues.
Museums
Confederate Memorial Institute or Bat
tle Abbey: Magnificent memorial to the
entire South and the southern cause, con
taining famous Hofbauer murals, John
Barton Payne collection of valuable paint
ings, portraits of Confederate officers,
table china used by Washington; beautiful
grounds.
Confederate Museum: Former White
House of the Confederacy; each southern
state allotted a room for the preservation
of records, relics, etc.; contains the larg
est and most valuable collection of such
things associated with the war between
the states; architecturally valuable.
Valentine Museum: Another famous
old building renowned for its solid ma
hogany trimmings, Florentine mantles,,
spiral stairway, etc.; collection o f casts,
paintings, prints and books dating from
1474; original cast of Recumbent Lee;
ensemble of Virginia and North Carolina
Indian archaeology; war implements and
pottery of Solomon Island Indians; in
teresting sculpture.
Edgar Allen Poe Shrine: Old Stone
House, the oldest in Richmond; Washing
ton and LaFayette entertained here; now
a Poe memorial and containing original
manuscripts and relics associated with
the poet-writer; beautiful garden.
General Robert E. Lee Residence, now
Virginia Historical Society Home; price
less collection of rare books, manuscripts
and portraits.
John Marshall Home, now home of the
Association for the Preservation of Vir
ginia Antiquities; contains many valuable
personal property articles and relics asso
ciated with the chief justice and other
famous men.
Lee Camp Soldiers’ Home: Museum
contains Stonewall Jackson’s horse and
other curios and relics; beautiful grounds
surround the home, which adjoins the
Battle Abbey.

THE

Interesting Buildings and Sites
Home of Commodore Matthew Fontaine
Maury: Where he made initial subma
rine defense experiments, developed the
submarine torpedo and pursued investiga
tions that resulted in the first ocean windcurrent and tide charts, the projection of
trans-Atlantic steamship lines, the sub
marine telegraphic cable and the Federal
Weather Bureau.
Oldest Masonic Hall in the United
States: Dating from 1785, this old build
ing has been in continuous use since;
the signatures of LaFayette and his son
still can be read on the register; used
as a hospital during War of 1812.
Pratt’s Castle: English castle archi
tecture with dungeons, secret passages, etc.
Old Medical College of Virginia: Built
in 1845 and considered the best type of
Egyptian architecture in America; only
southern medical college to continue
classes during the war between the states.
Early Home of Edgar Allen Poe, as
well as site of office from which he edited
“ The Southern Literary Messenger.”
Sites o f: Miss Van Lew home, from
which she directed the Federal Secret
Service operations in Richmond and as
sisted in the escape of prisoners and
former slaves; where General J. E. B.
Stuart died; Bell, Bird-in-Hand, Eagle
and Swan taverns, all famous for their
associations with famous men and events;
first Art Academy in the United States;
Libby Prison, which was removed to and
re-erected in Chicago; home of George
Wythe; Edmund Randolph’s home; Old
Capitol, in which the Virginia legislature
of 1785 ceded the Northwest Territory to
the United States; Confederate navy yard
site, where Maury first successfully ex
ploded his submarine torpedo.
Historic Churches
St. John’s Episcopal: Here, on March
20, 1775, Patrick Henry delivered his fa
mous “ Give me liberty or give me death”
speech in the presence of Washington,

N ORTH W ESTERN

BANKER

J efterson, Marshall Andrew Lewis and
others; pulpit, cushions and baptismal
font given by George II in 1749 are on
exhibition; original building still in use;
graveyard contains graves of prominent
Virginians, the oldest tombstone bearing
the date of 1751.
St. Paul’s Episcopal: Here Jefferson
Davis received General Lee’s message stat
ing that Richmond must be evacuated;
practically everything in the church is a
memorial, the memorial windows to Gen
eral Lee being considered among the
handsomest in America.
First African: Erected in 1780 and re
built in 1870; housed the Virginia conven
tion of 1829-30 and the meeting of 1865
after the failure of the peace confer
ence at Fortress Monroe.
First Baptist: One of Richmond’s old
est churches; its basement was used as
a hospital for those wounded during the
Seven Days Battle Around Richmond.
Monumental Episcopal: On the site of
Richmond’s first theater in which met the
convention of 1788 which ratified the Con
stitution of the United States; destroyed
in 1802 by fire, it was rebuilt only to be
destroyed again in 1811, when seventytwo people, including Governor William
Smith, lost their lives; the present church
built by public subscription and municipal
appropriation, remains of the victims be
ing interred beneath the portico.
Historic Cemeteries
Hollywood: Dedicated in 1849 and
considered one of the most beautiful cem
eteries in the United States; only cemetery
in which two United States Presidents,
Tyler and Monroe, are buried; here also
are buried Jefferson Davis and his family,
Matthew Fontaine Maury, General J. E.
B. Stua,rt, General Fitzhugh Lee, General
Pickett, General Pegram, John Randolph
and other notables; a huge granite pyra
mid marks the burial ground of 18,000
Confederate soldiers.
(Continued on page 66)

giiiiniimiiiiiiiiiiiiiiiimiiiiiiHiinnimitimuimiiiiiiiiiiHiiiHiiiiiiiiiiiiiiiimmiiiiiiiiiiiiiiiitiMnmiiiiimiiiiiiimiiuttiiimiimiMunHmimnuiiiiiiiiiiiiwtHiiiiiimra

Ten Years A g o Today
B rief bits o f new s from The N orthw estern Banker, S eptem ber, 1924

Homer A. Miller, president of the
Iowa National Bank, Des Moines, does
not see anything to fear from the gen
eral war in Europe. “ History records
that war always increases prices and
the European trouble can’t help but in
crease the prices of our products and im
prove business conditions in general.
With the European countries at war,
there will be more consumers than pro
ducers and they will have to look to

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Federal Reserve Bank of St. Louis

this country to a greater extent than ever
for their supplies. Iowa should benefit
from the situation abroad. The state
has prospects of one of the biggest crops
in its history and there will be plenty
of surplus products. The New York ex
change closed because the financiers did
not want to let Europe flood us with se
curities. The only way in which the
money situation will become acute is in
the movement of crops and that is an

September, 1924

annual occurrence. This country is in
splendid financial condition. The banks
in the big cities never had so big reserve
funds as they have now.”
— 1914 —
L. D. Kepple, Cashier, Brandon Sav
ings Bank, Brandon, S. D .: “ I read
The Northwestern Banker, because I
get my money’s worth out of it. It is
an investment where legal rates are
forthcoming. ’ ’
— 1914 —
Geo. H. Richards, Secretary, Minne
sota Bankers Association, issued very
beautifully bounded volumes this year
containing a report of the proceedings
of the twenty-fifth annual convention of
the Minnesota Bankers Association,
which met at Minneapolis. The book is
profusely illustrated with half-tone por
traits of state officers and group chair
men.
— 1914 —
E. L. Johnson of Waterloo, Iowa, and
M. B. Hutchison, Ottumwa, Iowa, have
both been elected on the directorate of
the federal reserve bank of the Chicago
district. The other members are: Class
A, Group 1— Geo. M. Reynolds, Chicago;
Group 2, J. B. Forgan, Chicago; Group
3, E. L. Johnson, Waterloo. Class B,
Group 1— Harry B. Joy, Detroit; Group
2, M. B. Hutchison, Ottumwa; Group 3,
A. H. Vogel, Milwaukee.
— 1914 —
Wm. B. Hughes, secretary of the Ne
braska Bankers Association, has an
nounced the dates of September 16
and 17, 1914, for the next annual con
vention of the association at Omaha. He
says it will “ be different.”
Don’t
miss it.
— 1914 —
War in the year 1914 between the civ
ilized countries of Europe— yesterday
high government officials, foreign minis
ters and peace advocates said that such
a thing was impossible, but today the
horrors of the bloody conflict form the
largest part of our every-day news. It
is to be hoped that out of the turmoil and
strife will arise a new and better country
across the water.
— 1914 —
Everything is in readiness at Rich
mond, Virginia, for the fortieth annual
convention o f the American Bankers As
sociation which convenes in that city
during the week of October 12, 1914.
The rate from Chicago to Richmond and
return is only $29.40. Arrangements
have been made with the Pennsylvania
lines for one or more special trains, Chi
cago to Richmond. Equipment will be
all-steel, drawing room cars, compart
ment cars, diners and observation cars
(no sleepers on special trains) and will
leave the Union Station, Chicago, Fri
day, October 9th at 5 p. m., arriving at
Richmond about 7 p. m., Saturday, Oc
tober 10th.

THE

¡September, 1924

BANKER

A M E S and trade marks are what they are made. It was
natural that this institution, as one of Chicago’s three
oldest banks, turning its activities to banking in 1869, should
call itself the “U nion” Trust Company.

Union then was the great and worthy name for which the
nation had fought.

A nd with the name logically went the eagle— a mark sug
gesting the vigilance, the unswerving loyalty, the strength,
decision and courage which we believe should distinguish
a bank in the service of its community.

I
II
I

In our 55 years as one of Chicago’s best known commercial
banks, this well known trade mark has come to symbolize
high traditions of integrity and service throughout the
country. O ur aim is that it shall continue to be more than
a trade mark—the sign of a banking service in keeping with
the future of Chicago and the Nation.

t
■

UNION TRUST

I
I
I

NORTHWESTERN

CO M PAN Y
CHICAGO

Offering the Seven Essentials o f a Banking H o m e
SAFETY

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Federal Reserve Bank of St. Louis

SPIRIT

EXPERIENCE

CALIBER

CONVENIENCE

COMPLETENESS

PRESTIGE

j
I
I
I
I
I

THE

NORTHWESTERN

September, 1924

BANKER

" A faithful fmtiir ia a alrnng
iu'frun': luhnan fynfoth aiuln'
mu' fyuiU'th a notable treaaurr”
Likewise, a satisfactory bank correspondent is a valuable ally, which,
once found, is indeed a prize.

I lH E

correspondent service o f

TheOmaha
J\[ationalBan\ and The
Omaha Trust Company is a friend's

endeavor to do the entrusted task
with even greater care than for
one’s self. T o this duty this bank
brings facilities sufficient for every
service, resources adequate for the
need, and judgment ripened by
sixty-eight years o f experience.

m a h a

a t io n a l
rust

WALTER W. HEAD, President

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Federal Reserve Bank of St. Louis

Ban

o m pan y

September, 1924

THE

NORTHWESTERN

BANKER

Chicago's Many Banks A re Open to
A . B. A . Delegates
Opportunity for comparison of methods and systems afforded at the Fiftieth
Annual Convention, September 29-30 and October 1-2
N THE matter of ‘ ‘ Taking the Bank to
the People” Chicago has something
to show the delegates to the fiftieth
annual convention of the American Bank
ers Association when they meet in that
city September 29th. The neighborhood
bank has become an institution of great
importance in Chicago’s financial struc
ture and the manner in which it has de
veloped its field in the last few years
affords an interesting subject of study for
the country’s financiers.
Chicago is distinctly a city of individ
ual banks. Branch banking is not per
mitted under Illinois law, and while there
are a few groups of affiliated institutions,
all the banks are separate corporate units.
Of a total of approximately 250 banks
in the city only twenty-six are located in
the downtown district, or “ in the loop,”
as it is known locally. The remainder are
in the “ outlying” class, located in com
munity centers throughout the metropoli
tan district. The latter range from small
institutions with a few hundred thousand
dollars in deposits to banks with total
resources of $25,000,000. Their officers
are prepared to take an active part in
the entertainment of the city’s banking
guests next fall. They have a creditable
record in the role of hosts on their own
account and will contribute materially to

the success of the big national meeting
in September.
The development of these “ outlying”
banks has made great strides since the
last meeting of the A. B. A. in Chicago
in 1918. It is interesting to note that
their growth has not been at the expense
of the great commercial institutions of
the downtown district, but rather has
promoted materially the general banking
prosperity of the city. They are con
stantly training an army of hundreds of
thousands of bank customers. They con
stitute a great reservoir of savings, add
ing much to the financial power of the
community. They conduct on a large
scale work in thrift, investment and bank
ing methods which is of far-reaching
public benefit.
All the banks of Chicago have, accord
ing to the latest available statistics, com
bined capital, surplus and undivided
profits of $295,960,200. Of this sum $68,816,000 or 23.24 per cent was accounted
for by the “ outlying” banks. Of a
total of $2,377,063,000 deposits these
same banks carried $621,289,000, or 26.13
per cent. It is in the matter of savings
deposits, however, that the “ outlying”
banks assume greatest importance. The
total of these accounts for all the banks
of the city, as shown in the last call,

was $628,636,000, of which $331,287,000
was on deposit with the neighborhood
banks. In other words, they held 52.69
per cent of the accumulations of per
sons of small means. The potentialities
of this clientele can hardly be overes
timated.
The neighborhood banking business re
ceived its greatest impetus in the days
of high-rate commercial paper immedi
ately following the war. Earnings of 20
per cent a year on capital stock were
common and in some cases they ran as
high as 50 or 60 per cent. They are
not so high now, with the paper rate hov
ering around 3 per cent, but they are
still large enough to provide an attrac
tive field for investors in the stocks of
these banks. In the time of greatest
prosperity the outlying institutions
nearly all erected handsome new build
ings of their own, built up their sur
pluses and generally fortified themselves
for the period of easy money through
which they are now passing.
The success of these outlying banks
gives striking proof that the seeds of
thrift sown during the war and the lib
erty loan campaigns struck root more
deeply than was generally supposed.
While the greatest accumulations of sav
ings have been in industrial centers,

„■titrl
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■

Scenes in Chicago with which A. B. A. Convention visitors will become familiar. On the left, Michigan Avenue south from
Randolph Street, Art Institute left center, public library extreme left. Center photo, Michigan Avenue north from Randolph
where the grade to two-level link bridge begins. On the right, south end of Michigan Avenue with the London Guarantee Building
in the foreground.

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Federal Reserve Bank of St. Louis

THE

where the population is largely of foreign
birth or descent, the progress made in
this direction by the native element is
so pronounced that it does not suffer in
comparison. The desire to safeguard
the future seems to be common to all
and to be increasing as the savers be
come more independent, and begin to
realize practical benefits from their
economy.
Bankers generally agree that prohibi
tion has been an important factor in the
promotion of saving. High wages and
full employment may have provided the
nest-egg, but the passing of the saloon
undoubtedly has done much to make pos
sible the filling of the nest.
All the banks of Chicago, from the
largest in the loop to the smallest of
those in the outlying districts, will hold
“ open house” during the convention.
The wide diversity in these banks makes
it possible for any banker to visit, if he
wishes, a city institution of approxi
mately the size of his home bank. Ar

NORTHWESTERN

BANKER

September, 1924

On the left, Chicago’ s Municipal Pier, 3,000 feet long and 292 feet wide, with three
levels— freight, passenger traffic and recreation—-built at a cost of four million dollars.
On the right, Jackson Park from the air, old Fine Arts building of the W orld’s Fair
at left center. A bond issue was recently voted to restore the building for permanent use.

rangements have been made to provide
machines for those who would like to
compare with their own the systems and
methods employed in city banks.
The official convention program covers
four days, the general and divisional ses
sions being interspersed with entertain
ment features for both men and women.

October 3d has been designated as golf
day, the committee on that pastime, so
distinctively the bankers’, has secured
the Olympia Fields Club for the day.
This club is one of the largest in the
country, having four 18-hole courses,
any one of which is a test for the best
the golfer has in strokes and vocabularv.

Committees for A . B. A . Convention
nois; F. R. Elliott, Harris Trust and Sav
ings Bank; C. E. Estes, Illinois-Merchants
Trust Company; O. G. Foreman, Foreman
National Bank; F. J. Greenebaum, Greene
baum Sons Bank and Trust Company; J.
F. Hagey, First National Bank of Chicago;
C. B. Hazlewood, Union Trust Company;
J. W. O ’Leary, Chicago Trust Company;
J. R. Washburn, Continental and Commer
cial National Bank; George Woodruff, Na
tional Bank of the Republic; Lawrence
Whiting, Boulevard Bridge Bank.

Executive Committee

Chairman, George M. R eynolds,
Chairman Continental & Commercial
National Bank
Charles S. Castle, President Standard
Trust and Savings Bank; W. . Cummings,
President Drovers National Bank; C. G.
Dawes, Chairman Central Trust Company;
P. L. Evans, President Home Bank and
Trust Company; H. W. Fenton, President
Harris Trust and Savings Bank; H. E.
Foreman, President Foreman National
Bank; 0. G. Foreman, Chairman Foreman
National Bank; D. R. Forgan, Chairman
National City Bank; J. B. Forgan, Chair
man First National Bank; L. A. Goddard,
Chairman State Bank of Chicago; M. E.
Greenebaum, President Greenebaum Sons
Bank & Trust Company; E. A. Hammill,
President Corn Exchange National Bank;
D. V. Harkin, President Union Bank of
Chicago; A. W. Harris, Chairman Harris
Trust and Savings Bank; H. A. Haugan,
President State Bank of Chicago; Wm. A.
Heath, Chairman Federal Reserve Bank;
S. T. Kiddoo, President Stock Yards Na
tional Bank; H. C. Laycock, President Peo
ple’s Stock Yards State Bank; J. A. Lynch,
Chairman National Bank of the Republic;
J. J. Mitchell, President Illinois-Merchants
Trust Company; J. B. McDougal, Gover
nor Federal Reserve Bank; J. R. Noel,
President Noel State Bank; J. E. Otis,
President Central Trust Company; H. E.
Otte, President National City Bank; I. N.
Powell, President Washington Park Na
tional Bank; W. J. Rathje, President MidCity Trust and Savings Bank; F. H. Rawson, Chairman Union Trust Company; A r
thur Reynolds, President Continental and
Commercial National Bank; E. H. Rey
nolds, President Peoples Trust and Savings
Bank; R. J. Schlesinger, Chairman Peoples
Stock Yards State Bank; C. E. Schlytern,
Chairman Union Bank o f Chicago; S. A.
Smith, President Northern Trust Company;
J. F. Smulski, President Northwestern
Trust and Savings Bank; Lucius Teter,
President Chicago Trust Company; M. A.
Taylor, President First Trust and Savings
Bank; William Turner, Manager Bank of

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Federal Reserve Bank of St. Louis

Reception

Committee

Chairman, W illiam R. D aw es ,

Vice President Central Trust Company of
of Illinois and President Chicago Asso
ciation of Commerce.
Budget Committee

Chairman, J ohn R. W ashburn ,
Vice President Continental and Commer
cial National Bank
Registration Committee

Chairman, C. E. E stes,
Vice President Illinois-Merchants Trust
Company
J. H. Grier, First Trust and Savings
Bank; J. E. Sullivan, Foreman National
Bank; A. S. Bagwall, Stock Yards Na
tional Bank; B. W. French, Northern
Trust Company; E. A. Hintz, Peoples Trust
and Savings Bank.
WALTER H. HEAD
President American Bankers Association
Montreal (Chicago) ; E. L. Wagner, Presi
dent National Bank of Commerce; F. O.
Wetmore, President First National Bank
of Chicago;
H. A. Wheeler, President
Union Trust Company; R. C. Wieboldt,
Chairman Reliance State Bank; George
Woodruff, President National Bank of the
Republic.

Entertainment Committee

Chairman, J ohn W. O ’L eary,
Vice President Chicago Trust Company
F. A. Crandall, National City Bank; F.
A. Cuscaden, Northern Trust Company;
F. R. Elliott, Harris Trust and Savings
Bank; O. G. Foreman, Foreman National
Bank; F. J. Greenebaum, Greenebaum Sons
Bank and Trust Company; J. F. Hagey,
First National Bank of Chicago.

Arrangements Committee

Smoker Committee

Chairman, M elvin A. T raylor,
President First Trust and Savings Bank
C. E. Carlson, State Bank of Chicago;
F. A. Crandall, National City Bank; F. A.
Cuscaden, Northern Trust Company; W.
R. Dawes, Central Trust Company of Illi

Chairman, O scar G. F oreman,
Chairman of the Board, Foreman National
Bank
T. F. Ford, Northern Trust Company;
F. D. Letz, Illinois-Merchants Trust Com-

(Continued on page 34)

September, 1924

THE

NORTHWESTERN

BANKER

Davenport
is the business heart of E astern Iow a.
Y o u w ant the best in banking service
here.
M ake sure o f it, by availin g yo u rself
of the broad facilities and interested
cooperation o f this strong bank.
Collections handled to your liking,
C redit inform ation g la d ly supplied,

PO O ^O O O M ^

Su r p l u s

AMERICAN
tfmäS^SSSSf

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

THE

NORTHWESTERN

BANKER

September, 1924

Bankers of Northwest Prominent in
A . B. A . Circles

EMIL WEBBLES
Burlington, Iowa

J. L. MITCHELL
Sioux City, Iowa

I. J. GEEEN
Davenport, Iowa

T. E. WATTS
Grand Junction, Iowa

A. C. SMITH
Clinton, Iowa

EAY NYEMASTEE
Davenport, Iowa

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

THE

September, 1924

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

BANKER

J. L

M IT C H E L L
P resid en t
L. H . H E N R Y
V ice P res, and Chairman o f the B oard
H . A . GOOCH
V ice P resid en t
O. D. P E T T IT
Cashier

F R IT Z F R IT Z S O N
A ssistan t Cashier
F R A N K R. K I R K
A ssistant Cashier
JO H N P. H A IN E R
A ssista n t Cashier
L. M. A S H L E Y
A ssistant Cashier

•:riv

The Great 3 In 1

»,;i; :t

CO
•. *
r*

Located at the joining lines o f these three g reat
states:

Iowa
Nebraska
South Dakota

‘V.

A nd being in one of the greatest agricu ltu ral dis
tricts is Sioux City. The agricu ltu ral interests of
this g rea t district look chiefly to Sioux C ity as a
trad e center.

.7 :

» / -»

A nd in Sioux City is the F I R S T N A T IO N A L B A N K
which is in close allian ce with these interests, serv
ing them helpfully. Its com plete banking service
is a big fa cto r in this district’s progress,
•*. '*

How may we serve Y O U ?

Capital One Million Dollars

FIR ST NATIONAL BAN K !
"

TPï E

H A N K

OF S T A B I L I T Y "

w T lO U X C I T Y , I A .

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

THE

N ORTH W ESTERN

BANKER

September, 1924
COMMITTEES TOR A. B. A.
CONVENTION
(Continued from Page 30)

pany; D. Chamberlain, Drovers National
Bank; W. W. Gates, Central Trust Com
pany of Illinois; A. K. 0. Cochrane, Union
Trust Company; L. L. Hobbs, National
Bank of the Bepublic; A. K. Foreman,
Foreman National Bank; J. H. Grier, First
Trust and Savings Bank; C. A. Birdsall,
Continental and Commercial National
Bank.

W h ile Y ou A r e H e re

—

drop in any time so
that one of our officers
can accompany you on
a tour o f inspection of
our rooms that are urn
like anything you have
yet seen in bank archb
tecture.

FEED W EAY
Waterloo, Iowa
Transportation Committee

h ic a g o

r u st

Southeast Corner of Monroe and Clark Streets

Chairman, C. E dward Carlson,
Vice President State Bank of Chicago
Gaylord S. Morse, State Bank of Chi
cago; Eichard M. Hanson, Northern Trust
Company; Cliston P. Walker, Harris Trust
Company; George F. Brown, Central Trust
Company.

In the Center of Things
The Live Stock National offers every service to
bankers in this territory.
The Sioux City Stock Yards are fast approach
ing the head of the list. An account with the
only bank located at the stock yards will enable
you to receive prompt service.
Correspondence invited.

The Live Stock lSiational Bank
Located at The Stock Yards
S IO U X C IT Y , IO W A
DEAN H. LIGHTNEE
Aberdeen, South Dakota

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Federal Reserve Bank of St. Louis

September, 1924

THE

NORTHWESTERN

BANKER

UILDING
COMMITTEE MEETS
ENTLEMEN, our bank building construction plans are rapidly
approaching the point now where we can proceed with the
actual work. The fa ct that our interior plans, fixtures, etc.,
will soon be definitely decided upon assures us o f quick action.
M y trip to Charles City the other day was a very interesting one. In
conferring with the Fisher Company and inspecting their plant, I find
they have without a doubt the most com pletely equipped bank fixture
plant in the West.
Then, too, their experience in years backed with a thorough knowledge o f bank fixture construction and interior arrangement is of the
highest standard.
W hen I left fo r Charles City, as you know, the interior fixture end of
our new building was plainly a problem.
A ll that has been easily explained to me by the Fisher Company
engineers.
My recom m endation to this committee is to ask Mr. Fisher o f the
Fisher Company to com e to our next meeting and present to you per
sonally the facts and figures we discussed.
It was just the other day when Snider, president of a bank in Iowa, dropped
into our office after having corresponded with us for a short time. He had
a problem that was a bit perplexing to him. Snider was immediately taken
into conference with our bank fixture specialists who have had many years
of experience in bank building and bank fixture business. His' ideas were
embodied in the plans we worked out for him, which enabled him to present
the matter clearly, concisely and without controversy at the next meeting
o f their building committee.

(P '/ta ries CPiti),

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Federal Reserve Bank of St. Louis

THE

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

BANKER

September, 1924
Music Committee
Chairman, J. F. H agey,

Vice President First National Bank of
Chicago
Hotel Committee
Chairman, Craig B. H azlewood,
Vice President Union Trust Company
W. G. Edens, Central Trust Company of
Illinois; C. E. Estes, Illinois-Merchants
Trust Company; J. F. Hagey, First Na
tional Bank of Chicago; J. B. Washburn,
Continental and Commercial National
Bank.
Information Committee
Chairman, George W oodruff,
President National Bank of the Bepublic
John E. Broeksmit, Vice President Har
ris Trust and Savings Bank; William C.
Cummings, President Drovers National
Bank; A. K. Foreman, Vice President
Foreman National Bank; C. H. Fox, Vice
President Chicago Trust Company; Martin
A. Graettinger, Secretary Illinois Bankers
Association; Henry A. Haugan, President
State Bank of Chicago; Wilson W. Lampert, Vice President Continental and Com
mercial National Bank; Murray McLeod,
President Irving Park National Bank;
Joseph B. Noel, President Noel State
Bank; Eugene M. Stevens, Vice President
Illinois-Merchants Trust Company.
Golf Committee
Chairman, F. A. Crandall,
F ir s t
N a tio n a l
Bank
B u ild in g
C h icago

Vice President National City Bank
C. A. Barr, Continental and Commercial
National Bank; C. V. Essroger, First Na
tional Bank of Chicago; C. Meyer, Clear
ing House Association; W. E. Walker,
Corn Exchange National Bank.
Theater Committee
Chairman, F. B. E lliott,
Vice President Harris Trust and Savings
Bank

W hile
in
Chicago
Bankers are invited to make use of the facilities of the NORTH
WESTERN BANKER Chicago office. Information concerning the
financial district and places of interest thronght the Middle
Western metropolis will be gladly furnished by AVilliam H. Maas,
Manager, Chicago Office
THE NORTHW ESTERN BANKER
Clifford DePuy, Publisher
Suite 1148 First National Bank Building
Telephone Dearborn 6063
38 South Dearborn Street

Advertise in the Northwestern Banker

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Federal Reserve Bank of St. Louis

J. B. Leavell, Continental and Commer
cial National Bank; F. A. Cuscaden, North
ern Trust Company; S. W. White, National
Bank of the Bepublic; John W. Thomas,
Central Trust and Savings Bank; George
A. Fandrop, Harris Trust and Savings
Bank; Alfred K. Foreman, Foreman Na
tional Bank; B. F. Newhall, First National
Bank; Walter J. Cox, State Bank of Chi
cago; Guy W. Beed, Harris Trust and Sav
ings Bank; J. G. Wakefield, Corn Exchange
National Bank.
Women’ s Committee
Chairman, F. A. Cuscaden,
Vice President Northern Trust Company
B. O. Lord, Harris Trust and Savings
Bank; G. H. Dunscomb, First National
Bank of Chicago; J. B. Leavell, Conti
nental and Commercial National Bank.
Publicity Committee
Chairman, G. W. Cooke,
Assisttant Cashier, First National Bank
of Chicago
Arthur D. Welton, Continnetal and Com
mercial National Bank; Carl A. Gode,
Illinois-Merchants Trust Company; Gay
lord Morse, State Bank of Chicago; P. L.
Hardesty, Union Trust Company; William
J. Kelley, Chicago Trust Company.

There is no tracing the connection of
ancient nations but by language; and,
therefore, I am always sorry when any
language is lost, because languages are
the pedigree of nations.—Johnson.

THE

September, 1924

NORTHWESTERN

BANKER

IEstablishedt
183 G
= 332/

N A N Y true estimate of a bank,
as in any true estimate of a man,
the largest single factor is
0 $ .

ITS RECORD
Behind this bank lie sixty-eight years of
conservative banking and o f unques'
tioned security for deposits.
3

Interest paid on
daily bank balances.

I R A R O D A M A R , P r e s id e n t
C. E. P I C K E T T , V ic e P r e s id e n t
J. O. T R U M B A U E R , V ic e P r e s id e n t
F R E D H. W R A Y , C a sh ier

LeavittandJohnson
National Bank
W a te r lo o

The Oldest BankinBlackHawk County

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

j#H

im
m M

THE

N ORTH W ESTERN

BANKER

September, 1924

Drawing the Line o f Battle with the
Political Demagogues
Bankers must lay cards on table and demand vote of confidence
from fifteen million taxpayers
I N LOOKING toward the future, it
seems to me that there has seldom,
if ever, been a time when so large a
responsibility rested upon the bankers
of the country as at the present moment.
So far as my knowledge of bankers and
banking goes, the business of those en
gaged in it has been almost continu
ously on the defensive, particularly so
far as matters of politics and govern
ment are concerned. Is it not high time
now that the bankers themselves take
the offensive with respect to their profes
sion, meet their accusers and before the
public demand the preservation and prac
tice of those sound fundamental prin
ciples which are so absolutely essential
to the welfare of the nation? Is it not
time that we lay our cards on the table,
submit our case to the approximately
fifteen millions of depositors who are
entrusting their savings and financial all
to our care, and demand that they give
us a vote of confidence or drive us for
ever from the positions we occupy? Be
cause, either we are honest, entitled to
the confidence that is reposed in us,
and stand for those policies of govern
ment and business that will make for the
prosperity of the country, or we are
guilty of all that the politician and dema
gogue accuse us of and unworthy of the
places we hold. It is inconceivable to
me that the great masses of our people
can continually be led to support those
whose chief claim to political prefer
ment is their denunciation of the busi
ness men and the bankers of the country,
except on the theory that those engaged
in banking and in business persistently
decline, or refuse, actively, continually,
and publicly to challenge and refute the
slanders of their accusers. For my part,
I believe that the bankers and business
men of the country have little right to
complain of the prevalence of unsound
economic theories, of radical political
tendencies and paralyzingly foolish legis
lation, so long as they maintain the silent
or defensive attitude which has charac
terized them in the past. Why should
the employes of large, financial, commer
cial or industrial institutions continually
vote for the things which the owners
and managers of such institutions be
lieve and know to be inimical to their
welfare and prosperity? Is it not be
cause such owners and managers have
never called their employes together,
laid their cards on the table, discussed
their problems and the perils of pro
posed legislation with them? I cannot

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

By Melvin A . Traylor
President First Trust and Savings Bank
Chicago

From an address before Illinois Bankers
Association

MELVIN A. TRAYLOR

believe that employes would deliberately
support proposals which would render
bankrupt enterprises with which they
are connected and from which they get
their daily sustenance, if in simple, plain
English they were advised of just what
the inevitable, commonsense result of
such proposals would be. It will do
little good for us to make high-brow,
denunciatory speeches to gatherings and
conventions of those engaged in similar
lines of business with us. We do not
represent the voting majority, but the
voting majority is a part of our organ
izations, it works for us and with us.
Without its confidence and cooperation
we cannot succeed, without our pros
perity it fails. In turn, it is entitled
to a larger measure of our confidence
and knowledge of our problems, and we
forfeit and lose its political support, I
think, because we do not interest it in
our problems and fight back when we
are attacked and accused.

Just now in this state, as in the na
tion, we are complaining and declaiming
bitterly and vehemently against the bur
dens of taxation, and yet I believe we
have little right to complain. It is freely
charged, and perhaps with some justi
fication, that the farmer, the home owner
and the banker, is paying his unjust pro
portion of taxes. Under present cir
cumstances this is inevitable and is
likely to continue if we pursue the policy
that has characterized us in the past.
No one denies that the real and fixed
property, and the assets of the banker,
are the easy prey of the tax assessor.
Neither does anyone deny that the in
tangible wealth of the state, which con
stitutes by far the greater amount of
the property of our people, in a very
large measure, escapes taxation. And
yet a few years ago we defeated a new
constitution, under which it would have
been possible to have levied an income
tax and to have reached vast intangible
property, which now pays no tax. The
result has been exactly what the propo
nents of the new scheme said it would
be, and tangible property is paying the
increased burden which it was certain
it would pay. In our federal government
it is certain that the majority of the
members of House and Senate believe
that the people of the country want tax
measures that ostensibly propose to
make the wealth of the country bear
the burden of taxation, while at the
same time they perpetuate the shelter of
tax-exempt securities, which permits this
same wealth, as reflected in large in
comes, wholly to escape taxation; to
say nothing of the plain fact that high
surtaxes prevent wealth from seeking
productive enterprises, thereby curtailing
the commercial and industrial activity
of the country, which again makes fewer
jobs, produces fewer dollars, furnishes
fewer markets for the products of labor
and enterprise already existing. It may
be that the majority of the voters of the
country will approve such a program.
They perhaps cannot be blamed for do
ing so, because they have heard only one
side of the story, and that from the poli
tical office seeker, who finds it easier to
win political favor by denouncing as
crooks and malefactors of wealth those
who own or manage the business or
financial institutions of the country than
to preach sound economic doctrine, and
no one before the same audiences chal
lenges or denies what he has to say.
I recognize we are, or think we are,

September, 1924

THE

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

BANKER

A Responsible Bank
for Responsible
People !
U nderstanding the needs of the soil and
supplying the elem ents it lacks m akes fo r
fe rtility and profit.
K n ow in g and fillin g the needs of any
business helps that business to thrive and
develop.
Our institution understands and meets
the requirem ents of its m any patrons.
It is a vital and grow ing force in the pro
gressive activities of the community.
Our facilities are designed to m eet your
banking needs.
U SE TH EM !

OFFICERS

Ralph Van Vechten
Chairman of the Board
Glenn M. Averill
President
Geo. P. Miller
Vice-President
Martin Newcomer
Vice-President
Karl H. Rehnherg
Vice-President
Chas. C. Kuning
Cashier
Peter Bailey
Assistant Cashier
Anna R. Smouse
Assistant Cashier
Marvin R. Selden
Assistant Cashier
Geo. W. Swab
Assistant Cashier
Van Vechten Shaffer
Assistant Cashier
Bertha M. Wolf
Assistant Cashier

“ This Bank W as Not Built in a Day?’

C edar R apids National Bank

Cedar Rapids, Iowa

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

THE

NORTHWESTERN

BANKER

S tu rd y
Leadership
Fo r more than 40 ye a rs the banks of
Iow a, N ebraska and South Dakota,
have recognized the S e c u r i t y
N ational as a dependable, service
able banking connection.
This long experience, with a m an age
ment known fo r integrity and service,
has built an institution w id ely known
fo r its sturdy leadership.
Isn’t this the kind of
a bank you would
like to deal with?

CECURITV

%Nfr N A T IO N A L B A N K

S IO U X C IT Y , IO W A

^
'p

Capital and Surplus $600,000
A . B. D A R L IN G , P r e s id e n t
V . C. B O N B S T E E L , V ic e P r e s id e n t
L. R . M A N L E Y , C a sh ier
GEO. C. C A L L , V ic e P r e s id e n t
R . E. B R O W N , A s s is t a n t C a sh ier

Inspect These
T ourself

Write us now

There are Capitol Hill monu
ments in virtually every cem e
tery in Iowa. W e have prepared
a list o f these, by towns, so you
may inspect the quality o f these
superior memorials fo r yourself.
Before choosing, let us send you
this list, together with free sam
ples and prices.

C A P IT O L H ILL M O N U M E N T
100 E. LOCUST ST.

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

Established ¡SSS

CO M PAN Y
D E S M O IN E S. IOW A

September, 1924

too busy to devote any time to politics,
politicians or their economic fallacies.
We might not be believed and our efforts
might mean greater failure if we tried,
but I doubt if we could make a better
investment of our time than to devote
part of it to “ fighting the devil with
fire,” and at least telling the people
the truth, whether they accepted it or
not. There was a time when we could
look to the press of the country to con
vey sound business and political doc
trines. Unfortunately, that doesn’t seem
to be generally true now. The publish
ing of a newspaper is a commercial en
terprise, the selling of their issues is
the basis of their prosperity. The public
mind has so long been poisoned by un
sound economic doctrines and by at
tacks upon business, commerce and fi
nance, that there are more people who
buy papers that do not challenge these
doctrines or deny these accusations than
there are of the other class, hence per
haps it is too much to expect our news
paper friends to fight our battles for us,
however just our cause may be, when to
do so would damage their own enterprise
and when, above all else, we do not fight
ourselves. Being commercial enterprises,
however, and therefore dependent upon
the patronage of the financial, commer
cial and industrial business of the coun
try for their success, it is difficult to un
derstand why the business community
continues to support many of the news
papers of the time. I recognize that
the power of the press is tremendous,
and I am a disciple of advertising in
every legitimate channel, but I cannot
conceive it to be my duty to support with
my adveritsing patronage a newspaper
which through its news and editorial
columns daily seeks to slander and
crucify my business. Nor do I believe
that the business men of the country
have much right to be continually com
plaining of the perversity of a large part
of the press so long as they persist in
underwriting its existence with, their
material support.
A few days ago I heard a gentleman,
supposedly well versed in polities, say
that if the charter of the Federal Re
serve System were up for renewal or ex
tension at the present time, he doubted
very much if Congress would prolong
the life of the system, and certainly if
it did would only do so after such
amendments and modifications as would
destroy the basic principles underlying
the present structure. Probably most
of us have some conception of what a
real menace is involved in this sugges
tion, but I wonder how much we have
done or will do to acquaint the voting
public, many of them our own customers,
who will eventually elect the Congress
who will pass upon this proposition, with
the actual facts of the case. We know
that the Federal Reserve System is un-

September, 1924

THE

NORTHWESTERN

BANKER

The Personal Equation
ROBABLY in no line of business
activity does the personal equa
tion count for so much as in
banking.
The Merchants National has endeavored
at all times to make the personal equa
tion between itself and its customers the
most pleasing and satisfactory possible.
A smile, a thoughtful act, a pleasant
greeting expressed through personal con
tact or in the every-day business cor
respondence— all helps to make the per
sonal equation an ever-increasing asset.
The officers of The Merchants for many
years have enjoyed the personal acquaint
ance of thousands of bankers throughout
the territory which they serve. They
have cherished these friendships and have
been happy that they have so many
banker friends who have found the per
sonal equation a valuable part of the bank
service rendered by The Merchants
National Bank.

ED A R

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Federal Reserve Bank of St. Louis

R A P I D S ,

I O W A

THE

popular in many parts of the country,
and, notwithstanding- mistakes have been
made in the administration of the sys
tem, we know full well that most of the
opposition to it is based, not upon facts
but upon twisted stories and the absolute
falsehoods of the office sekeer, who has
found it easy and popular to attack
and blame the system for all the ills, al
leged and imagined, which may affect
any particular group. We know that the
science of banking is not an accident,
that it rests upon principles as funda
mental as the laws of the universe, that
long, technical and practical experience
is absolutely essential to the safe man
agement of any financial institution, and

NORTHWESTERN

BANKER

yet what is the result of the political
assaults that have been made upon this,
the greatest piece of financial machinery
in this country? With a genuine high
regard for the present membership of
the Federal Reserve Board, with the ut
most confidence in their integrity and
sincerity of purpose, it is no reflection
to say that not an appointive member of
the present board is a thorough, technical
or practical banker, with a long back
ground of practical experience in the
everyday management of large financial
institutions. And still the politicians
are not satisfied, and the people from
time to time are electing to office men
whose chief claim to their support is

Convenient to
Convention Headquarters
A pleasant walk up Michigan Boulevard during the
Convention of the American Bankers Association
will bring you to the doors o f The Peoples Trust &.
Savings Bank. W e hope you will take the oppor
tunity to learn from personal contact how the for
ward looking policies of our officers and directors
are serving the interests of our customers.
DIRECTORS
CHARLES G. D A W E S, C h a i r m a n of

B o a r d , C e n t r a l T r u s t C o m p a n y o f Illinois
P. D . A R M O U R , Vice-President
Armour & Company
GEORGE M . R E Y N O L D S , C h a i r m a n
of B o a r d , C o ntinental & C o m m e r c i a l
National B a n k
S. M . F E L T O N , P r e s i d e n t
C h i c a g o Q r eat W e s t e r n Railroad Co.
F R E D E R IC K W .C R O L L , Vice-President

Armour & Company

H E R M A N A VA LD E C K , V i c e - P r e s i d e n t

Continental & C o m m e r c i a l
National B a n k

JOSEPH T . R Y E R S O N , P r e s i d e n t a n d
T r e a s u r e r J o s e p h T . R y e r s o n & Son
P H IL IP K . W R IG L E Y , V i c e P r e s i d e n t

W i l l i a m W r i g l e y Jr. C o .

C H A S . W A R D S E A B U R Y , M arsh &
M cLennan, I n s u r a n c e
R O B E R T B. U P H A M , V i ce - P r es i d e nt
E AR LE H . R E Y N O L D S , P r e s i d e n t

OFFICERS
E A R LE H . R E Y N O L D S , P r e s i d e n t
R . B. U P H A M , V i c e - P r e s i d e n t
GEORGE D. K A N E , Vice- P r es i d e nt
A . M . SPEER, C a s h i e r
F. B . W E A K L Y , S e c r e t a r y
E. A . H IN T Z , A s s i s t a n t C a s h i e r
R . R . O L S O N , Assistant C a s h i e r , M a n
ager S a v i n g s D e p a r t m e n t
C . L. PE N N E LL, Assistant C a s h i e r

J. H . M O O N , A s s i s t a n t C a s h i e r
E. C. FISHER, A s s i s t a n t C a s h i e r
A . H . KE LLE R, M a n a g e r B o n d D e p t .
W . F. F L U R Y , A s s i s t a n t M a n a g e r B o n d
Department
H. B. B R A Y , M a n a g e r C r e d i t D e p t .
D . J. D E V E R E A U X , A u d i t o r
JAM ES P. H A N K E Y , M a n a g e r S a f e D e
posit V a u l t s

TAc P E O P L E S

&>SavingsB A N K.

Trust

Total Resources— Over $ 1 9 ,0 0 0 ,0 0 0

Michigan Boulevard at Washington Street, Chicago

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Federal Reserve Bank of St. Louis

September, 1924

that they will see to it that every banker
is driven from the Federal Reserve Board
and that the board shall be constituted,
in a majority or whole, of those coming
from the particular bloc the politician
alleges he represents. Personally, I be
lieve that there should be a diversity
of interest represented upon the board,
but that the majority of the board
should ever be constituted of other than
men thoroughly trained by practical ex
perience in financial management, is to
me utterly unthinkable and if practiced
will, in the end, I have no doubt, lead
to a complete disintegration of the
strength of the system, if not to a worse
conclusion. We do not select bankers
for our plowboys or bricklayers for
our artists. We demand specialists for
every character of specific activity, and
the welfare of our whole population de
mands that the credit power of the na
tion, without which no business can live,
must be committed likewise to the hands
of experts in its use and distribution.
It is a pretty and catching phrase to
declaim that if you destroy the agricul
ture of the country grass will grow in
the streets of your cities, but it is no
more true than to say that if you destroy
the credit structure of your country the
products of your labor will rot in the
fields and the machinery of your in
dustry and commerce rust into inac
tivity and decay. Therefore, let us, who
are in no small measure responsible for
the banking and financial welfare of the
nation, give unstintingly of our time to
the propagation of sound economic poli
cies, which need to be and can be sold
to the public if we but do our part.
I hope I am not an alarmist or a
foolish optimist. I realize that my cross
section of public opinion does not reveal
that tranquility of thought and activity
which is at once convincing and en
couraging. I am not, however, either
disturbed or dismayed. I think we have
gone through similar periods before. Suc
ceeding generations will undoubtedly en
counter such experiences again. Human
nature has ever been of about the same
perversity that it is now, and will like
wise always continue so.
Evolution
works its slow and tedious progress up
wards through seasons of turmoil and
tranquility. My faith is strong in the
common sense and sound judgment of
the American people, and my confidence
is unshaken that, despite whatever ills,
may temporarily beset us, we will in
the end go forward with a firm grip on
the ideals and traditions which have
made possible the progress of the past.
I had rather have a fool to make me
merry than experience to make me sad.
•—Shakespeare.
This is faith: it is nothing more than
obedience.— Y oltaire.

September, 1924

THE

N O R T H W E ST E R N

BANKER

TH E

The

N o rth w e ste rn
B an k er

HANOVER
N A T IO N A L
BANK
OF THE CITY OF NEW YORK
Established 1851

“ The Necessary Financial Journal“

is at your

Service—Always
CLIFFORD DePUY
PUBLISHER

Capital . . . $5,000,000
Surplus and Profits 22,000,000

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D ES M O IN ES, IO W A

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Federal Reserve Bank of St. Louis

THE

N ORTH W ESTERN

BANKER

September, 1924

PersonaÌ Paragraphs

— here is
g rea ter financial retu rn

for you— with o n e of
America’s S tr o n g e st
In su ra n ce C o m p a n ie s —

Far-seeinsr bankers are associating
with life insurance— in this com
pany, one of the strongest, most
progressive old line companies in the
West.
They have built up a greater finan
cial return and a more interesting
and substantial business than in
their past endeavor. This is the
actual, outstanding experience rep
resented by the figures of their
achievement.
To you—we offer the same oppor
tunity!
Become our representa
tive ! Sell insurance in your own
community or elsewhere! W e will
help you find business, close busi
ness and develop your agency
You will build up an unlimited in
come!
W e want men who can
earn $15,000 to $20,000 per year.
W e are one of the dominant old
line life insurance companies in the
West. Our policies in force total
more than $125,000,000. Our ratio
of assets to liabilities is one of the
highest, and our percentage of re
jections is one of the lowest, found
anywhere! W e have policies with
new selling features and settle
ment provisions, not yet issued by
any other company.
W e will maintain a deposit in your
bank.
Write to us immediately, now! We
will hold your correspondence in
the strictest confidence.
Address A. L.. care of this paper.

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Federal Reserve Bank of St. Louis

Charles E. Mitchell, president of the Barlow and children will remain at the
National City Bank, sailed recently for lake for the remainder of the summer.
— $—
Europe to join the large group of Ameri
William P. Cleator, lumberman, bank
can bankers who are already there. A l
director and pioneer resident of Minne
though George F. Baker, chairman of
the board of the First National Bank, apolis, died August 8th at Ausbury Hos
and Otto H. Kahn of Kuhn, Loeb & Co. pital in Minneapolis. Mr. Cleator, who
have recently returned, the United States was born in Minneapolis, had been a
is still represented in Europe by a long resident of north Minneapolis all his
list of bankers, including J. P. Morgan, life. He was prominently identified with
Thomas W. Lamont and George Whitney, many civic and business enterprises. At
all of J. P. Morgan & Co., and E. B. the time of death he was senior member
Sweezy, vice president of the First Na of the firm of Sawyer-Cleator Lumber
Company, was on the board of directors
tional Bank.
Mr. Mitchell will visit the branches of of the old German American Bank,
the National City Bank in France, Bel which later became the North American
gium and Switzerland. Later he will Bank. When this bank was taken over
go to London. Mrs. Mitchell will ac and opened as an office by the North
company him on the trip, which prob western National Bank, Mr. Cleator was
ably will last until the second week in elected a director of the Northwestern
National Bank.
October.
— $—
— $—
Those who remember Samuel G. Bayne,
David R. Crissinger, governor of the
Federal Reserve Board and former for many years president, and after
Comptroller of the Currency, visited Chi wards chairman of the Seaboard Na
cago recently with the view of ascer tional Bank of New York City, will be
taining the opinion of bankers’ busi pleased to know that, just before he died,
ness conditions. He also learned from he had completed his autobiography. The
them that they are entirely opposed to book will be published by Brentano in
the recent reductions in the New York October. Besides the insight it will give
Federal Reserve Bank’s rediscount rate into the record of a very rugged life, it
to 3 per cent. Mr. Crissinger upholds will be of great interest because of the
the action of the New York bankers, account it gives, not only of his experi
stating that the downward revision in ences in organizing and carrying on fi
the rate from 3^2 Per cent to 3 per cent nancial institutions in a great many
was entirely justified by existing con parts of the country, but also something
about the early oil developments in this
ditions.
country, in which Mr. Bayne was a very
-—$—
Eugene M. Stevens, vice president of active figure.
— $—
the Illinois Merchants Trust Company,
Ralph Van Vechten, vice president of
has returned from a vacation spent in
the Continental & Commercial National
northern Wisconsin.
Bank of Chicago, has returned from an
Agriculture has turned the corner and extended European tour extremely optiis on the road to permanent recovery, timistic concerning Germany when the
reparations questions are settled and
Eugene Meyer, Jr., managing director of
the war finance corporation, reported to credits are extended to German indus
President Coolidge after a trip of in tries which will enable them to proceed
spection through the west. Accompanied with business. “ Germany’s splendid
by C. T. Jaffrey, president of the Ag workshop is in order,” he said upon his
ricultural Credit Corporation, Mr. Meyer advent into Chicago. “ The physical
conferred for more than an hour with equipment is there, the plants, machin
the president, August 13th. ‘ ‘ Conditions ery and real estate being in excellent
everywhere in the W est,” Mr. Meyer condition. The old creditor class has
said, “ are improving rapidly. It is the been wiped out. The depreciation of the
most radical improvement in agriculture mark, while it ruined the old bondholders,
in years. The most hopeful sign is the left the industries virtually free of debt.
trend toward purchasing of farm lands. While they lack working capital, they
The farmers are finally getting out of will be on their feet again as soon as
the necessary credits are supplied. These
the hole.”
will be available in ample volume fol
— $—
L. M. Barlow, cashier of the Iowa lowing the placing of the $200,000,000
Trust & Savings Bank, of Des Moines, German loan in the United States, Paris
is home from an outing at his lodge on and London. This will result in an in
the shores of Lake Jefferson, Minn. Mrs. creased demand from Germany for our

¡September, 1924

THE

NORTHWESTERN

BANKER

Do the Facts Interest You?
The value of advertising is measured by
results.
You must admit that.
The
figures herewith, measure the effec
tiveness of “ R e p u b l i c” advertising.
And— the same men who produced
these results stand ready and willing to
supply you with the same sort of adver
tising— free of charge.
May we not explain in detail?

D ep osits M ay 5, 1922

$ 25,884,950.30
D ep osits Sept. 15, 1922

$ 27,425,995.48
D ep osits A p ril 3, 1923

$ 33,216,379.76
D ep osits Sept. 14, 1923

$ 35 , 166,412.73
D ep osits M ar. 31, 1924

T he N atio n a l B a n k o f the

E
• •

O R

P U B
C M

L I G

I C A O

$ 37, 241,406.49
D ep osits June 30, 1924

• *

$ 41,851,709.60

“ T H E B A N K E R S ' S E R V IC E S T A T IO N ”

OFFICERS
JOHN A. LY N C H ............
GEORGE WOODRUFF .
ROBERT M. McKINNEY.
SAMUEL W. W HITE____
OSCAR H. SW A N ............
WM. C. FR EE M A N ..........
CHAS. S. M A CFERRAN .

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Federal Reserve Bank of St. Louis

. . .Chairman of the Board
............................... President
...................... Vice President
......................Vice President
Vice President and Cashier
................. . .Vice President
. . Assistant Vice President

LELAND L. H O B B S.............................................. Assistant Vice President
ORTON W. B A R T L E T T ........................................Assistant Vice President
PLATT M. CON RAD............................................Assistant Vice President
THOS. D. ALLIN.................................................................Assistant Cashier
W ALTER L. JOHNSON...................................................Assistant Cashier
THOMAS H. O’CONNOR.................................................Assistant Cashier
FRAN K H. GAY................................................................. ..
Trust Officer

THE

NORTHWESTERN

T he Great Central M arket
N 1879— when this bank was established— the
population of Chicago was less than 500,000.
It has now passed the 3,000,000 mark, and
business activity has increased in proportion. As one
of Chicago’s oldest banks, this institution has played
an important part in the city’s development.
Chicago’s location and unsurpassed transportation have
made it the world’s greatest market. As a center of
production it takes the lead in many important basic
industries. The Chicago of the future will be a still
greater city and a more important commercial center.
For 45 years this bank has been closely identified with
Chicago’s progress. Our officers have a background of
experience and an intimate knowledge of local condi
tions. We invite the accounts of correspondent banks
which are seeking a satisfactory connection in this great
central market.

STATE BANK OF CH ICAGO
LASALLE A ND WASHINGTON STREETS

THE IO W A BA N K DIRECTO RY
Published Twice a Year

September, 1924

BANKER

raw materials and food products, but it
will also mean stiffer competition for
our manufacturers of finished goods.”
■—$—
Homer L. Jones has been made an as
sistant cashier of the Minnehaha Na
tional Bank, Sioux Falls, S. D. Mr.
Jones has been associated with the bank
for the past 15 years.
— $—
Fred A. Parker, for the past five years
sales manager of P. W. Chapman & Co.,
is now associated with the bond depart
ment of the Illinois Merchants Trust
Co., Chicago. Mr. Parker heads the new
department of inheritance tax analysis.
This department analyzes the holdings of
individuals with respect to taxes and
makes investment recommendations. This
service is free to all investors.
— $—
Carl F. Schlesselman has resigned as
secretary and treasurer of the Rochester
Loan and Trust Company, Rochester,
Minn., to become associated with the
Rochester Laboratories, Inc. Mr. Schles
selman has been in charge of the Roch
ester Loan & Trust Company for the
past three years and through his efforts
has created a very flourishing institu
tion. Mr. Schlesselman will continue to
act as a member of the board of direc
tors of the Rochester Loan & Trust Com
pany.
— $—
Louis Wilson of Topeka, Ivas., assist
ant state bank commissioner of Kansas,
has resigned, being succeeded by J. S.
McMahon of Kansas City, assistant com
missioner in charge of the Central State
Bank receivership at Kansas City. Mr.
Wilson came to the department when
Carl J. Peterson was appointed by Gov
ernor Davis as state bank commissioner.
He formerly was vice president of the
American National Bank at Hutchinson.
— $—
James B. McDougal, governor of the
Chicago Federal Reserve Bank, is motor
ing through Wisconsin, Minnesota and
the Dakotas. He will not return to Chi
cago prior to September 1st.
Fred N. Shepherd, executive manager
A. B. A., was in Chicago recently on
his way back to the job in New York
after a month’s vacation in the moun
tains of Montana.

ReedMasterPlan
E M P H A T IC A L L Y

BETTER
ADVERTISING

TH E N O RTH W ESTERN BA N K ER

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Federal Reserve Bank of St. Louis

R E E D

& i..B a n k e r

A ssociates

111 West Washington

SIATE24Al

Street

CHICAGO

September, 1924

T il E

NORTHWESTERN

James B. Forgan, chairman of the
First National Bank, Chicago, will re
main at his summer home at Harbor
Point, Mich., until September 1st.
— $—
J. P. Morgan sailed recently aboard
the steamship Minnewaska for England
for his annual vacation abroad. Mr.
Morgan said that he would not confer
with European bankers and statesmen
on the possibilities of the German loan.
He emphasized that he usually goes
abroad about this time of the year. Nev
ertheless Wall Street believes Mr. Mor
gan may investigate that and other in
ternational banking questions from a
purely unofficial standpoint. His part
ners, Thomas W. Lamont and George
Whitney, at present are abroad.
—$—
Robert Lee McMinn, for the last sev
eral years associated with William W.
Eastman Co., Minneapolis, has become
connected with the stock department of
Paine, Webber & Co., members of the
New York Stock Exchange. Previous
to his connection with the Eastman com
pany, Mr. McMinn served 10 years in the
St. Paul office of Shearson, Hammill &
Co., also a member of the New York
Stock Exchange.

BANKER

SEEKING N E W BUSINESS O N O U R RECORD

1824—An Acorn
1924—An Oak
I F T H E C H E M I C A L dwells insist
ently upon the date that it was
founded,

it is because in the one

hundred years of its history, it has
had countless opportunities to learn
that the greatest ability of all, is the
ability to survive.
Every oak was on@e an acorn.
But not every acorn becomes an oak.

CHEMICAL
100 Y E A R S

Part Timers
A man who works on a set of books
three hours a day and tries to sell life
insurance during the remainder of his
time is a part timer.
If you waste three hours a day, sitting
in your office, standing on the street,
talking with other insurance men, or in
any one of the hundred other ways, aren ’t
you a part timer ? If you don’t like part
timers don't be one.— Great Southern
Life Bulletin.

BANK
CENTENNIAL
OLD — 1 0 0 %
MODERN

THE

U H E M IC A L
N A T I O N A L

B A N K
OF N E W Y O R K

Reading maketh a full man, confer
ence a ready man, and writing an exact
man.—Bacon.

BRO AD W AY AT CHAMBERS, FACING CITY HALL
FIFTH AVENUE OFFICE A T 29th STREET
€ MADISON AVENUE OFFICE A T 46th STREET

KEEP Y O U R

O F F IC E R S

in c lo s e r t o u c h w it h y o u r s a v in g s a n d c h e c k in g a c c o u n ts b y th e u se o f o u r
e x p e r t m a ilin g se r v ic e .
O ur s p e c ia lt y : D u p lic a t in g L e tte r s , A d d r e s s in g , M a tch in g , F o ld in g an d M a ilin g .
D E S M O IN E S D U P L IC A T IN G CO.
9 1 7 -9 1 9 W E S T G R A N D A V E .

D E S M O IN E S , I O W A

THE STATE CENTRAL SAVINGS BANK
KEOKUK, IOWA
C a p ita l .........................................................................................................$ 200,000.00
S u rp lu s and U n d iv id e d P rofits ..............................................................
329,574.16
D eposits ....................................................................................... ................ 2,803,196.77
W I L L I A M L O G A N , P re sid e n t
L . J . M O N T G O M E R Y , V ic e P re sid e n t
A S A P H B U C K , V ic e P re sid e n t
C, J. B O D E , C a sh ie r
H . T . G R A H A M , A s s is t a n t C a sh ie r
H . B O Y D E N B L O O D , A s s is t a n t C a sh ie r

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Federal Reserve Bank of St. Louis

ACCOUNTS

BANKS

AND

BANKERS

INVITED

THE

NORTHWESTERN

September, 1924

BANKER

LIQUIDITY
Successful banking depends very greatly on keeping your bank loans liquid.
No bank need w orry about frozen assets if it keeps its m oney invested in
high-grade, short-time securities.
Our 6V2 per cent COLLATERAL GOLD BONDS which bear our UNQUALIFIED
ENDORSEMENT, can be purchased in any amount with any maturity desired.
Make your selections from the maturities listed below and thus keep your funds
liquid.
Orders may be placed with the IO W A N A TIO N A L BAN K or DES MOINES
SAVINGS BAN K AND TRUST CO M PAN Y, or sent direct.
PURCHASERS M A Y O BTAIN ALL OR A N Y PA R T OF EACH ISSUE.

6K % Collateral Gold Bonds 6

In Denominations of $500.00, $1,000.00, $2,500.00, $5,000.00

Am ount
Maturity
Amount
Maturity
17,1925
$10,000_______________ Dec.
5,1924 $ 5,000_______________ Jan.
24,1925
5.000 _____________ Dec.
10,1924 3.000 _____________ Jan.
7.500 _____________ Jan.
31,1925
7.500 _____________ Dec.
15,1924
5,1925
3.500 _____________ Dec.
20,1924 13,500_______________ Feb.
7,1925
5.000 _____________ Dec.
30,1924 5.000 _____________ Feb.
15,1925
5.000 _____________ Jan.
3,1925 10.000 ______________ Feb.
20,1925
2.500 _____________ Jan.
5,1925 5.000 _____________ Feb.
25,1925
5.000 _____________ Jan.
9,1925 3.500 _____________ Feb.
28,1925
5.000 _____________ Jan.
10,1925 10.000 ______________ Feb.
10,000_______________ Jan.
14,1925
Telephone W alnut 351— Long Distance 22

IO W A G U A R A N TE E
M ortgage Corporation
JULIUS D. A D EL M AN , President
BEN STERN, Secretary

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Federal Reserve Bank of St. Louis

OWNERS* A IS o V o P E R A T O R P
S H O P S' BU ILDING

SHOPS BUILDING
DES MOINES, IO W A

September, 1924

THE

NORTHWESTERN

BANKER

IOWA BOND DEALERS SECTION
T h e N o r th w e s te r n B a n k e r Is th e O fficial P u b lic a tio n o f
th e Io w a B o n d D e a le r s A sso c ia tio n

O F F IC E R S

P r e s i d e n t .......................................................... W a lk e r H a n n a , Burlington
V ic e P r e s i d e n t .......................................... W a r r e n F e r g u s o n , O ttu m w a
S e c r e t a r y -t r e a s u r e r ........................................ J o h n C o r le y , D es M oin es
BOAR D OF GOVERNORS

W ALKER HANNA
President

W a lk e r H a n n a ................................................................................. B u r lin g t o n
W a r r e n F e r g u s o n ............................................................................... O ttu m w a
J o h n C o r l e y ............................... ._....................................................D e s M o in e s
S. E . C o q u ille t t e ..........................................................................C ed a r R a p id s
G e o r g e M. B e c h t e l...................................................
D aven port

JOHN CORLEY
Secretary-Treasurer

W h at the Banker Should Know A bout
Various Types o f Bonds
PROPERLY conducted bond de
partment is an extremely valu
able adjunct to a commercial
bank Not only can it be operated at a
profit which should form some consider
able part of the bank’s dividends, but
it may be used as a means of obtaining
new business for the bank and of holding
the business of its clients. There are,
however, greater responsibilities at
tached to the operation of a bond de
partment for a bank than to the opera
tion of an independent bond house.
Banks very properly, through the tradi
tion of years, have come to enjoy a cer
tain prestige and reputation for sound
financial judgment, in the minds of the
community, and a considerable portion
of the people who invest their money
through the bond department of a bank
do so because of their belief in the
bank’s integrity and judgment, and rely
on this rather than on their own analy
sis of the securities in question. There
fore, if anything should go wrong with
the securities so purchased, they would
hold the bank much more accountable
than where they had purchased secur
ities through a bond house.
For this reason, a bank must of neces
sity confine its dealings in securities to
the more conservative types and cannot
afford, from motives of immediate profit,
to go into speculative issues. It has
the further responsibility of protecting
its clients— in protecting them so far as
it is possible in the event that something
goes wrong with the securities which it
has sold them. This is, of course, a
moral and not a legal responsibility, but

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Federal Reserve Bank of St. Louis

By Willis K . Clark

"Bonds and stocks are enormously di
versified in kind and character. The
two fundamental distinctions are invest
ment bonds and stock as against specu
lative bonds and stocks. The dividing
line is frequently hard to determine but
in the main, the distinction is one of a
record of past performances as opposed
to no performance at all.”

it is one which a bank of character and
standing will clearly recognize.
The degree of responsibility will vary
with the circumstances. For instance,
a bank which has sold French govern
ment external bonds, acting in good
faith and having sold the securities on
its own belief in their real worth and
without misrepresentation to its cus
tomers, could hardly be held accountable
if through some international catastro
phe, the French government was unable
to meet its obligations. On the other
hand, a bank which had originated, set
up and sold an industrial or public util
ity issue of a more or less local charac
ter, where its clients had purchased the
security to a large extent on their con
fidence in the bank’s judgment and its
ability to safeguard such an issue properly, would be under the moral necessity
of working out for the benefit of the
bondholders any situation in which the
particular borrowing company became
involved. In other words, a bank should
not purchase a loan of this character

unless there is sufficient equity to per
mit its being worked out without loss
to the bondholders on a foreclosure or
receivership basis. A bank which will
recognize this moral responsibility and
use its efforts and resources where nec
essary in protecting its customers will,
of course, build up a public confidence
and a far-reaching clientele.
The successful operation of a bond
department as well as successful com
mercial banking, depends primarily on
sound judgment. There are, however,
certain more or less well-defined lines
along which an institution can proceed
with relative safety. These lines nat
urally vary with changing conditions,
and safe guide posts at the moment
might be decidedly unsafe a few years
hence.
I will confine this discussion almost
entirely to investment bonds. This sub
ject in itself is too broad to cover ade
quately in a short time and I will at
tempt only to touch some of the high
points, with particular reference to the
types of investment bonds which are
at present most commonly dealt in in
this territory. In the first place, the
bond business is much more closely re
lated to banking than the stock busi
ness because of the fundamental differ
ence in the two classes of securities. A
bond is an evidence of indebtedness.
A stock is an evidence of ownership.
Banks are interested in making loans
and not in buying property; therefore,
the bond rather than the stock busi
ness is a properly related function for
a bank.

THE

NORTHWESTERN

BANKER

Your bank will be interested in the cur
rent offerings of short-time paper which
we now have available. These are bonds
and notes which are especially strong as
to security, readily marketable, and pro
vide a very satisfactory yield. If you can
use some good paper just now write or
call us. No obligation.

Advertise in

The Northwestern Banker
v ív u t e

•\A
D U B U Q U E , IOW A
B. & I. Building

-P

h ih

IN V E ST M E N T
-• B A N K E R S
DES M O IN ES , IOW A
219 Securities Bldg.
D A V E N P O R T , IOW A
Putnam Bldg.

GEO. W H IT E , President

OMAHA. N EB R A S K A
720 Bankers Reserve Life Bldg.
B. A. P H IL L IP S , Vice President

t& o c r

Q ä ^
(7 ? z < 2 £ s .

------

CRADDICK SERVICE
716 F O U R T H A V E N U E S O U T H

MINNEAPOLIS

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Federal Reserve Bank of St. Louis

September, 1924

The bond business, if analyzed, will
be seen to consist of two primary func
tions; first, the extension of credit in
the form of secured loans, and, second,
the distribution of these loans to the
investing public. The procedure is not
so very different from commercial bank
ing except that a commercial bank must
first have, through its deposits and other
resources, the credit to extend before
it can make loans, whereas in investment
banking, the making of a loan is predi
cated upon confidence that the loan so
made can be sold to investors.
This feature of investment banking
makes it more of a merchandising busi
ness than commercial banking, and in
addition to the usual requirements of
a safe loan, namely, those of ample se
curity and sufficient earning power on
the part of the borrower to liquidate the
obligation, must be added in a satisfac
tory bond issue the third essential of sta
bility to investors.
Bonds and stocks are enormously di
versified in kind and character. The
two fundamental distinctions are invest
ment bonds and stocks as against spec
ulative bonds and stocks. The dividing
line is frequently hard to determine, but
in the main, the distinction is one of a
record of past performances as opposed
to no performance at all. Of the classes
of bonds, the broad general divisions
are: Government, political subdivisions
of governments, railroads, public utili
ties, industrials, real estate and timber
bonds. Both good and worthless securi
ties can be found in every class with
out exception, so that an institution,
which endeavored to safeguard its policy
by confining its dealings to one class
only, would not necessarily be safe with
in any particular class.
The value of government securities is
a problem in the political stability of
governments and the faith and credit
of nations. External obligations are
better secured than internal obligations
because they involve the question of
good faith and maintenance of credit
with the rest of the world; whereas an
internal obligation is a responsibility of
its own people which might be evaded
by depreciation of currency, extension
or even repudiation without necessarily
breaking faith with other nations.
In political subdivisions of govern
ments, there are the general classes of
bonds secured by taxes, by revenues,
and by assessment liens. Obviously two
principal factors determine the worth
or worthlessness of such securities; first,
the ability to meet the taxes or revenues,
and second, the moral responsibility and
desire to do it.
The intelligent analysis of a tax or
revenue-secured bond requires a knowl
edge of the laws under which such in
strumentalities are issued. One of the
principal safeguards in this class of se
curity is the debt limit imposed by the

September, 1924

THE

constitutions of most states on their
political subdivisions.
Railroad bonds, prior to the war, were
more actively traded in throughout the
eastern United States than any other
type of bond security. The savings bank
laws and the laws regulating the invest
ment of trust funds and insurance com
pany funds in eastern states, in most
instances, give preference to underlying
railroad bonds, so that there is in a
sense a preferred class of rails which,
because of legislative restrictions, have
found a market in New York and Massa
chusetts savings banks with which other
securities of probably equal intrinsic
value cannot compete because they are
not legal for such purpose.
Public utility securities are comm
daily, into greater prominence and favor
with investors. The greatest present de
velopment in the country is in public
utilities and the demands of these com
panies for capital loans to finance this
expansion is tremendous. The situation
seems to be mainly wholesome and
economically sound. In the great ma
jority of cases, expansion of these com
panies is merely keeping pace with the
demand for the product which they have
to sell.
There are two principal factors which
throughout the country at large have
put public utility securities in a favor
able position; first, the creation by every
state, I believe without exception, of
public service commissions whose pow
ers, while regulatory and in some in
stances perhaps too drastic in their regu
lation, nevertheless have served to set
up uniform systems of accounting, man
agement and operation, and one most
important principle which they have
recognized is the necessity of permitting
the utility companies to charge rates
which will permit not only the payment
of interest on their funded debts, but
also the payment of dividends on their
junior securities where the property
value of the company is properly repre
sented by bonds, preferred and common
stocks without inflation.
This principle has been repeatedly
recognized and confirmed by state and
federal courts. The recent decision by
the Supreme Court of the United States
in the case of the Southwestern Bell

NORTHWESTERN

Telephone Company versus the Public
Service Commission of the state of Mis
souri not only gives practical applica
tion to the principle that rates must be
fixed to pay a fair return on the value of
the property, but goes on to emphasize
the principle that in establishing value,
consideration and actual weight must be
given to present costs of labor and mate
rial. Prom the viewpoint of the investor
in public utility securities, this decision
is most reassuring, it being a guarantee
that where outstanding securities prop
erly represent capital invested for pub
lic service, rates will be permitted to
allow the company to meet its interest
and dividend charges on a fair basis.

The public utility securities which
commonly find their way into the hands
of the investor are either bonds or pre
ferred stock and these are usually issued
only for the purpose of capital expendi
tures in improvements and betterments.
In other words, they directly represent
property value. The conventional form
of public utility mortgage securing bonds
is an “ open-end” mortgage which pro
vides for the issuance under the same
mortgage of additional bonds for addi
tions and betterments to the property,
under restrictions.
The percentage of the cost of such
improvements for which bonds may be
issued varies in different mortgages. A

J -J A N D L IN G Certificates
of Deposit is profit
able.

Exchanging Certifi

cates of Deposit at face
value for high grade 7 Per
Cent Gold Bonds (at deal
er’ s discount)

makes the

transaction doubly profit

as our representatives to
handle our bonds.
A
banker-dealer then may
render a double invest
ment service, for be can
both recommend and sup
ply a high grade, safe bond
and profit by the transac
tion.

able.

Full support is given our

The Robert S. Strauss &
Company plan for bankers

banker-dealers. Complete
advertising assistance in

to recommend and handle

cluding newspaper adver

these profitable bonds is

tising,

thus augmented
by this new con
venient and de
sirable service.
W e are estab

W r i t e f o r c o m p l e te d e
tails, o r b e tte r still, th e
n e x t tim e y o u are in
C h ica g o o r D a v e n p o r t
call at o u r office and
we
can
d iscu ss
th e
m a n y a d vantages th e
se r v ic e has fo r y o u .

booklets,

folders,

circulars

and

mailings.
And now we
are

accepting

Certificates

Deposit.

Railroad
Corporation

B O N D S
FO R G A N , G R A Y & C O M P A N Y
Incorporated

R o b e r t S .S t b a u s s & C o .
iP O R A T E D f

First Mortgage Investments
108 So. LaSalle Street
CHICAGO

Investment Bankers
105 S. LaSalle Street
Chicago
Telephone Dearborn 7363

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Federal Reserve Bank of St. Louis

You Can Now Exchange
Certificates of Deposit
for Bonds—
and Double Your Profits

lishing bankers
Government
Municipal

BANKER

Kahl Building
DAVENPORT

THE

usual provision is to permit issuance for
75 per cent of the cost of improvements,
with the additional restrictions con
tained in most indentures that earnings
available for interest charges on the
total bonded debt, must, for at least a
year previous to the issuance of the
bonds, have been one and three-quarters
or two times the total interest require
ments. The 25 per cent quity is financed
by the sale of preferred or common
stock, or made up out of earnings.
In considering public utility bonds, it
is not essential that there should be the
same stock equity or equity represented
by other junior securities which safety
would demand of an industrial or real

NORTH W ESTERN

estate issue, but nevertheless there
should be a proper balance maintained
in the financial structure of a utility
company. The most satisfactory public
utility bonds are those of companies
which have been able to build up a rela
tively large equity in junior securities,
thus making it unnecessary for them to
exhaust their maximum bond issuing ca
pacity under their bond mortgages.
The second important factor which I
referred to lies in the policy followed
by most of the leading utility companies,
of selling stock to their consumers and
to the general public in the territories
which they serve. This policy, in addi
tion to building up a margin of security

Make a Profit
from your
Bond Department
Your B o n d D e p a r t m e n t c a n b e m a d e
to earn a b ig p ro fit for y o u r b a n k i f :
— Y o u h a n d le th e righ t k in d
o f bonds
— Y o u tie u p w ith

th e righ t

k in d o f a h o u s e
— You

g e t th e rig h t k in d o f

c o o p e ra tio n fr o m th is h o u se .
W e h ave s h o w n a g r e a t m a n y b a n k s
H O W

to m a k e th eir bon d d e p a r t

m e n ts p ro fita b le a n d w o u ld be g la d
to s h o w y o u .

Hyxvey; Emerson & Co.
B A N K SER V IC E D E P A R T M E N T

39 South La Salle Street, Chicago
1st W isconsin N at’ l Bank Bldg.

1 1 8 -1 2 0 Burdick Arcade

M IL W A U K E E

KALAM AZOO

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Federal Reserve Bank of St. Louis

BANKER

September, 1924

over and above the mortgage debt, is an
excellent safeguard against political per
secution and creates a good will toward
the company and a community interest
in it which is of great value.
Industrial bonds as a class are diffi
cult to cover in any general statement
because each issue depends more upon
individual analysis than any other type.
The greatest difficulty lies in the fact
that in an industrial security, probably
to a greater extent than in any other
class, the factor of management of the
issuing corporation predominates. How
ever, in the general class of industrial
bonds are found some of the highest
grade securities in the world.
The bonds of the United States Steel
Corporation and the General Electric
Company are regarded as the peer of any
bond investment.
Past performance,
present showing and future prospects are
essential factors to consider in any in
vestment. More than ordinary attention
should be paid to these factors in con
sidering an investment in industrial
bonds. Not only should a company show
a good and consistent earning record for
a period of years, but attention should
be given to the question as to whether
or not the same conditions which have
made the industry successful are apt to
continue, whether the industry is well
located geographically, and, in the ques
tion of management, what assurance
there may be that the successful man
agement of the past will be perpetuated
in the future.
Real estate bonds are good security
only to the extent that there is a com
bination of ample security and sufficient
earnings from the mortgaged property
to take care of the principal and inter
est of the bonds. Bonds of this type
should almost without exception be
either serial in form, or provide for a
sinking fund out of the earnings of the
property to retire the principal. The
serial maturities or sinking fund should
be in excess of a fair estimate of de
preciation of the property, and the best
types of such bonds would provide suffi
cient sinking fund or serial payments
to liquidate the entire loan at maturity.
This, however, is not always possible
and many safe loans are made on a
basis which necessitates a certain
amount of refunding of the last maturi
ties—the smaller the amount which is
left to be refunded the better. Real
estate bonds are gaining in favor and
properly so when they are issued in con
servative amounts and against income
bearing property.
In a paper of this kind, these brief
paragraphs regarding the different
classes of bonds are necessarily very
general in character. They are intended
mainly as some high line guide posts to
give a suggestion to the banker as to
what he should look for.

September, 1924

THE

Investment banking in America, while
it has already assumed enormous propor
tions, is only in its infancy. The public
at large is being educated in invest
ments. This is particularly noticeable
in the Northwest.
Prior to the war, there was only a
small handful of bond investors, the
principal form of investment in this ter
ritory having been in real estate, timber
and real estate mortgages. It would
seem, therefore, obvious that the wellinformed banker of today should be con
versant with the various types of in
vestment and in a position to give some
sound advice to his clients who seek
counsel on this subject.

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

BANKER

Section 5. The term of office shall be
one year.
ARTICLE III
Section 1. The Board of Governors shall
consiste of five (5) members: the Presi
dent, the Vice President, the SecretaryTreasurer and two (2) other members who
shall be elected each year as hereinafter
provided.
Section 2. The Board of Governors shall
have general charge of the affairs of the
Club and shall have full power to con
strue and carry out the several provisions
of the constitution and by-laws. A ma
jority of its members shall constitute a
quorum.

Section 3. The Board of Governors shall
appoint a committee of three at least thirty
days before the annual meeting to submit
at the annual convention nominations of
one candidate for each office.
Section 4. The Board of Governors shall
audit the accounts of the Secretary-Treas
urer any time it may deem fit, they shall
make general recommendations with re
gard to the financing of the Club.
Section 5. The Board of Governors shall
act as Membership Committee.
Section 6. The Board of Governors shall
receive and consider written complaints
made by any member against the ethics
or business practice of any member, and
may request the member against whom

Bond Men Will Protect
Investors
HE July issue of the N orth w est
B a n k er carried a story regard
ing the formation of a new invest
ment fraternity known as the Iowa Bond
Dealers Association. That the purpose
of the new organization is very much
worthwhile to all Iowa investors, and of
interest to bankers in general, is evidenced
by the constitution and by-laws of the as
sociation, which follow in full:

ern

Constitution and By-Laws of the Iowa
Bond Dealers Association
P reamble

The object of this association is to en
courage a spirit of cooperation among
Iowa dealers in Investment Bonds, to fos
ter and maintain standards and ethics,
to otherwise promote the welfare of the
profession, for the protection of Iowa in
vestors.
ARTICLE II
Section 1. The officers of the Club shall
be a President, a Vice President, and a
Secretary-Treasurer.
Section 2. The President shall preside
at the meetings of the Club and of the
Board of Governors. The President, and
in his absence the Vice President, shall,
with the Secretary-Treasurer, sign all con
tracts and obligations of the Club, and
shall perform such other duties as the
Board of Governors of the Club shall as
sign to him. The President shall be an
ex-officio member of all committees. The
President shall not succeed himself.
Section 3. The Secretary-Treasurer shall
give notice of all meetings and all elec
tions of the Club and of the Board of
Governors. He shall also keep such min
utes and records as are necessary.
Section 4. The Secretary-Treasurer shall
collect all dues and assessments, shall keep
the accounts of the Club and shall report
whenever requested to do so by the Board
of Governors. He shall also submit an
Annual Report at the end of the fiscal
year.

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Federal Reserve Bank of St. Louis

Investment Bonds
Suitable for Your Clients
W

H EN

y o u r c lie n ts a s k y o u

a b o u t in v e s tin g th eir fu n d s,
y o u w a n t to be p re p a re d to offer
th e m

secu rities th a t w ill b e st fit

th eir in d ivid u al r e q u ir e m e n ts.
O u r list o f c u r r e n t offerin gs in
c lu d e s ju s t s u c h secu rities.
L ib e r a l c o n c e s s i o n s

banks

w ith b o n d d e p a r tm e n ts e n a b le y o u
to resell th e s e secu rities a t a go o d
profit.

Mail coupon for our
current list

P.W. CHAPMAN © CO.,INC.
116 S. La Salle St.
CHICAGO

P .W . CH APM AN & CO., INC.,
116 S. L a Salle St.,
C hicago, 111.

City

42 C edar Street
NEW YORK

Please send us current
list o f bonds suitable
for our clients.

S tatf.------

THE

the complaint is directed to appear in his
own defense. The Board of Governors
shall take such action as is justified by
its findings. Either party may request a
review of this decision by the Iowa Bond
Dealers Association sitting as a committee
of the whole.
Section 7. The term of office shall be
one year.
ARTICLE IV
Section 1. The annual meeting shall
coincide in time and place with the an
nual meeting of the Iowa Bankers Asso
ciation.
Section 2. Special general meetings
shall be held at the call of the President,

NORTH W ESTERN

the majority of the Board of Governors,
or the written request to the Secretary
of five (5) members. At least one week’s
notice of special meetings shall be given
to members.
Section 3. The order of business shall
be substantially as follows:
Reading the minutes of the last meeting.
Secretary-Treasurer’s Report.
Report of Special Committees.
Report of Board of Governors.
General Business.
Election of Officers and Governors.
New Business.
ARTICLE V
Section 1. Memberships in this associa

Bonds for Banks
A A F A L L the qualities we demand in each bond we
recommend, safety of principal
comes first. This policy largely
accounts for our constantly in
creasing number of bank cus
tomers.
We

in v ite in q u ir y c o n c e r n '

in g

o ffe r in g s

and

shall he

p le a s e d to s e n d d a ily q u o ta '
tio n s to h a n k s in te r e s te d in
a c tiv e s e cu r itie s.

BROKAW
AND

COMPANY

1 05 South La Salle S t r e e t , C h i c a g o
Iowa Representatives:
EDWARD J. KELLY
MAURICE F. LEAHY

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Federal Reserve Bank of St. Louis

BANKER

September, 1924

tion shall consist of two (2) classes, as
follows: Active and Associate. Appli
cations for membership shall be mailed
to the Secretary for acceptance or rejec
tion.
Section 2. Active members shall be Iowa
institutions actively engaged in the sale of
Investment Bonds. They shall have been
engaged in the bond business at least six
(6) months prior to election.
Section 3. Active membership in this
Club shall be by unanimous election by
a secret ballot.
Section 4. Associate membership in this
Club shall be by application to and ap
proval by the Board of Governors. As
sociate members are entitled to all the
privileges of the Club, except the right
to vote and the right to hold office.
ARTICLE V I
Section 1. The entrance fee for Active
members shall be Ten Dollars ($10.00) and
the annual dues of Ten Dollars ($10.00)
plus Two Oollars ($2.00) for each em
ployee of the organization having the
privilege of the Iowa Bond Dealers As
sociation, payable at beginning of the
fiscal year.
Section 2. The dues for Associate mem
bers shall be Ten Dollars ($10.00), pay
able at the beginning of the fiscal year,
and Two Dollars ($2.00) for each em
ployee of the member institution having
the privileges of the association.
Section 3. There may be special assess
ments levied upon the members of the
Club at the discretion o f the Board.
Section 4. Should the dues and assess
ments of any member remain unpaid for
sixty (60) days, the membership involved
shall automatically be suspended. Any
member thus suspended may be reinstated
at the discretion of the Board of Governors
upon the payment of all his dues and as
sessments in arrears.
ARTICLE V II
Section' 1. Any three (3) members of
the Club may make nominations for of
ficers and must announce the same to the
Secretary-Treasurer not less than one (1)
week prior to the annual election. It shall
be the duty of the Secretary of the Club
to mail to each member such nominations
as may be made either by the Board o f
Governors or by petition as mentioned
above.
ARTICLE V III
Section 1. The Constitution and ByLaws may be amended at any meeting o f
the Club by a vote of not less than twothirds of the Active members present,
provided that notice of the proposed
amendment has been served on the Secre
tary by at least five (5) members not less
than ten (10) days before the meeting,
and that a copy of the amendment has
been sent to the members by the Secretary
at least five (5) days previous to the
meeting. An amendment to the amend
ment may be put without notice.

September, 1924

THE

NORTHWESTERN

BANKER

IN SU R A N C E SECTIO N

H ow Our Insurance Department Has
Helped Our Bank
URING the lean years we have
turned to the insurance field as
an opportunity for increasing the
bank’s business and earnings. It is a
well established fact that whatever bene
fits the customer benefits the bank and
we feel no regrets for the time and en
ergy expended in this line of work, for
it has certainly been a good thing for
both.
In the first place, the closer a man
sails to the wind, the more he feels the
need of protection, and most thinking
men these days have been glad to listen
to the suggestion of insurance. More
over they prefer to deal with their
banker, a man whom they know and
whose judgment and word they respect,
rather than an agent who is a stranger,
and so the insurance department has
been a real convenience for our old cus
tomers, but more than that, it has
brought not a few men into the bank
and insurance has been the entering
wedge for other business.
An agency must represent strong re
liable companies, not mutuals, those that
can and do pay legitimate losses promptly
and fairly and without quibbling. The
best advertising an agency can get is
the kind that comes from a well satis
fied customer who is inclined to talk.
A few days ago, we accompanied an ad
juster who awarded a generous adjust
ment on a small hail loss. We have no
doubt that this farmer will reinvest all
that he received, in insurance next year
and none of his neighbors will escape
hearing of his good luck in not losing
a cent during the severe storm, and the
bank will receive its share of the credit.
Prospects are everywhere. There is
scarcely a household where some one
would not be benefited by some line of
insurance if disaster came. The first
man in the bank to the last one before
the door closes offers a chance if effort
is made to find it. It is good plan to
keep a list of prospects and insurance
makes a good excuse for the bank repre
sentative to call at the homes of his
customers, getting that personal contact
that is all important in country banking.
Commissions, coming in, show a re
markable ability to pile up. We have
by no means reached our limit in this
territory— for there is no limit—but we
have succeeded in more than doubling
our business of last year. If the present

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Federal Reserve Bank of St. Louis

By Paul C. Heat'd
Cashier First State Bank, Champlin, Minn.
rate of increase can be kept up, it will
not be long before the insurance com
missions will be the earning that pays
the dividend on the bank stock.
Our experience has taught us the value
of persistence in building up insurance
business. Spasmodic and intensive but
periodic efforts cannot be compared to
keeping everlastingly and eternally after
a line—not necessarily making much
noise, but getting the risk, holding it
and grabbing for new business.
It is very essential to carry all lines
of insurance. The most successful fisher
man is the one that carries a varied line
of baits and flies. Specialization is al
right if you specialize in all lines. It
is very poor business to have to turn a
prospect away because you do not have
what he needs and it is very foolish to
sell him what he does not need.
Another essential is a thorough knowl
edge of each line carried. The agent

who presents the need clearly, the im
portant features of the contract, and the
cost, quickly and accurately, is a better
business getter than the one who has to
look it up and keep a customer waiting.
After getting the business it is impor
tant to keep an accessible and accurate
record of it. We use the card method—
one set for expirations and descriptions
of the policies and the other a ledger ac
count for the holder of the policy, giving
the charge and the credit when he pays
the premium. The first set we file ac
cording to the expiration date, the other
alphabetically. Policies must not be al
lowed to lapse for the renewal is easier
to keep than obtaining a new line to take
its place. Then, too, it is poor advertis
ing to let a policy lapse without the as
sured’s knowledge.
An insurance department lends its help
in another way, also. It gives the banker
an easy chance to protect many of his
loans with profit to the bank. The banker
holds the Avhip hand and can say if neces
sary, “ No Insurance-—No Loan,” and

What a man without enough Insurance is apt to think about

(Apologies to BnggS>

Cashier Heard doesn’t hide his insurance light under a bushel at Champlin. The
above cut is part of a four-page folder advertising the insurance business of the First
State. The folder is headed: “ Don’t Worry— Take the Advice Y ou ’ll Find Inside.”

THE

the insurance is usually forthcoming. The
result is a better loan for the bank and
strengthened credit for the customer.
Altogether we feel that our insurance
has proved a most profitable department,
both directly and indirectly. We have
nearly four hundred policies issued and
this is only a beginning. These policies
.cover around $500,000 worth of property.
Inspects Des Moines Office
F. E. White, field supervisor for the
Standard Life and the International Life
of St. Louis, spent several days in Des
Moines recently in conference with
Charles Whitfield, Iowa state manager for
these companies.
Buys Insurance Agency
Albert McFadden has purchased the in
surance agency at Prairie City, Iowa, for
merly owned and operated by Vander
Linden and McFadden. Mr. Vander Lin
den has purchased an agency in Marshall
town and will make his residence in that
city.
“ There’s one thing that is extremely
reprehensible in the city, yet it is highly
commendable in the country.”
“ W hat’s that?”
“ Watering the stock.” — Boston Tran
script.

N ORTH W ESTERN

September, 1924

BANKER

Explains M edical Examination
Ruling
The Iowa reinsurance department has
recently issued a ruling relative to the is
suance of life insurance policies based on
medical
examinations
made
several
months prior to the issuance of the policy.
A letter on this subject, from Commis
sioner W. R. C. Kendrick, reads as fol
lows :
Ruling No. 41.
The attention of this department has
been called to the practice of certain life
insurance companies issuing life insurance
policies in this state based upon a med
ical examination made several months
prior thereto and in connection with a
life insurance policy therefor issued to
the applicant.
Section 1783-b, supplement to the code
of 1913, provides:
“ Said officials shall decline to approve
any such form of policy or contract of in
surance unless the same shall, in all re
spects, conform to the laws of this state
applicable thereto and unless the issuance
of the same is based upon a satisfactory
medical examination of the applicant by
a physician duly authorized to practice
medicine or by an osteopathic physician
duly authorized to practice osteopathy in
the state of Iowa, or the state where ex
amined and no policy or contract of in

surance shall be issued by any insurance
company to any individual in this state
until such examination shall have been
passed and duly approved by the medical
examiner or medical board of such com
pany. Provided, however, that no med
ical examination of any person to be in
sured under an industrial policy shall be
required or be necessary when the amount
of the policy of insurance is five hundred
dollars ($500) or less.”
It will be observed that the statute
makes a medical examination of the ap
plicant a prerequisite to the issuance of a
policy. The reason for such medical ex
amination is obvious. It is important that
the physical condition of the insured be
known at the time the policy is issued,
and it is evident that an examination
made several months previous does not
disclose that condition. It is clear that
the intent of the legislature was that a
medical examination shall be made within
such a period preceding the issuance of
the policy as to preclude any reasonable
possibility of a change in the applicant’s
physical condition between the date of the
examination and the issuance of the pol
icy. Any other interpretation of the stat
ute would be unreasonable.
Section 1783-c, supplement to the code
of 1913, further provides:
“ Should any company decline to file a
copy of its form of policies or contracts

\iV .V V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .V .y;V .V .V .V .V .V .V V .V .V .V V V .V V ,V .V .V .V .V .V .V .V .V .V ,V .V ,V .V .V .V .V .V .V .V V .V ,V

Ohio and the Royal Union
The Buckeye State
O h io is r ic h n o t o n ly in d u s t r ia lly a n d a g r ic u lt u r a lly ,
b u t h is t o r ic a lly a lso .
T h e t e r r it o r y o f w h ic h the p r e s e n t sta te o f O h io w a s a
p a rt, w a s c e d e d to G r e a t B r ita in b y th e t r e a ty o f P a r is
in 1763. In la te r d a y s it w a s th e sc e n e o f m a n y h i s
t o r ic a l In d ia n b a ttle s .
O h io b e c a m e a sta te in 1803. H e r c itiz e n s n o t o n ly c o n
t r ib u t e d g r e a t ly to th e u p -b u ild in g o f th e W e s t, b u t
h a v e g iv e n to th e ir c o u n t r y s e v e n o f its p re s id e n ts ,
n a m e ly — U. S. G ran t, R u t h e r fo r d B. H a y e s , J a m es A.
G arfield , B e n ja m in H a r r is o n , W illia m M c K in le y , W i l
lia m T a ft , W a r r e n G. H a rd in g .
T o d a y o v e r 90% o f th e 25,073,600 a c r e s o f la n d w ith in
th e s t a t e ’s b o u n d a r y , is g iv e n o v e r to fa r m in g . In 1923
th e v a lu e o f h e r c o r n c r o p w a s $118,296,000; w h e a t,
$42,335,000; h a y , $61,000,000.
O h io is an in d u s tr ia l le a d e r, ir o n a n d ste e l b e in g
m o s t im p o r ta n t p r o d u c ts . B itu m in o u s c o a l m in in g
g r e a t s o u r c e o f e m p lo y m e n t an d in c o m e ; a n d th e r e
g r e a t q u a n t it ie s o f p e tr o le u m , v a lu a b le c la y
n a tu r a l g a s.

the
is a
a re
and

Royal Union Life
Insurance Co.
OHIO BRANCH OFFICE
925-936 Renkert Bldg.
Canton, Ohio
J. W . A . S ta u d t
C. L. Staudt
State A gen t
Asst. State Agent
A . C. W ill, Cashier

A m o n g th e p r in c ip a l c itie s a re C le v e la n d , C in cin n a ti.
Y o u n g s t o w n , T o le d o , C o lu m b u s, D a y to n , A k r o n an d
C a n to n , w it h m a n y o t h e r c itie s o f im p o r ta n c e .

Paid to Policyholders Over $17,000,000.00

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

Insurance in Force Over $115,000,000.00

September, 1924

THE

NORTHWESTERN

BANKER

as provided in this act, the commissioner
of insurance shall suspend its authority
to transact business within the state until
such form of policies or contracts have
been so filed and approved.”
Therefore, it is the ruling of this de
partment that no life insurance policy, ex
cept industrial policies in amounts not ex
ceeding five hundred dollars ($500) and
group insurance, shall be issued in the
state of Iowa unless based upon a medical
examination of the applicant within such
time as to give the company a reasonable
opportunity to pass upon the same. A
violation of this ruling will subject the
company, association or society guilty
thereof to a suspension of its certificate
of authority to transact business in this
state.
In witness whereof, I have hereunto set
my hand and caused my official seal to be
affixed at the city of Des Moines, Iowa,
this 18th day of July, A. D. 1924.
W. R. C. K endrick ,
Commissioner of Insurance.

On the first day of the meeting the
field representatives registered and in
the evening they were guests, with their
wives and families, of Ak-Sar-Ben.
President J. F. Buffington made the

Dedicate New Building
The new home office building of the
Guarantee Fund Life Association of
Omaha was opened recently with appro
priate ceremonies and seventy-two agents
of the company participated in a threeday convention held under supervision
of the officers of the company.

speech of welcome the second day, say
ing the new building had been made pos
sible only through the well-directed ef
forts of the company’s many loyal field
men. The response was made by Kan
sas State Manager George H. Meockel.
I. M. Taylor acted as chairman for the
day.

Walter W. Head, of Omaha, president
of the American Bankers Association,
was the headline speaker of the second
day’s session. Other-addresses were de
livered by C. 0. Coughlan and Rev. J. R.
Edwards.
Vice President Highes headed the
third day’s program, with an explana
tion of the company’s new monthly pre
mium payment plan. One of the impor
tant actions taken by the convention was
the decision of the board of directors
to accept an individual risk of $10,000
with one medical examination.
Guarantee Fund agents produced in
July over two and one-half million of
business, and the company is showing a
substantial gain over its 1923 underwrit
ing to date.
Fred Bloom Dead

New home office building of the Guarantee
Fund Life Association, Omaha, Neb.

Fred Bloom, representing the Security
Fire at Long Grove, Iowa, died recently
after several months’ illness. He had
been in the insurance business in that city
for thirty years.
Guaranty Life Convention
The annual sales conference of the
Guaranty Life Insurance Company of
Davenport, Iowa, will be held at the home
offices in the Kahl building on Friday and
Saturday, September 5th and 6th, accord
ing to an announcement made by L. J.

Life Endorse Each Other
Ohio is a true cross-section o f Am erican life. In this state you find the
highest type o f industry and agriculture. In both activities the “ BUCK
EYE STA TE ” is a leader. Her citizens from whose ranks have come
seven o f our presidents, are representative o f intelligent Am erica.
From this rich state which offers a fertile field for progressive life
underwriters, has come a substantial endorsement o f the Royal Union
Life, as indicated by the $15,000,000 o f life insurance this Company
has in force upon the lives o f this progressive people.
EACH MONTH THE T O TA L G ROW S LARGER.

ROYAL UNION LIFE
IN S U R A N C E

C O M P A N Y

Des Moines, Iowa
A. C. Tucker, President
W m. Koch, Vice President
D. C. Costello, Secretary

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Federal Reserve Bank of St. Louis

THE

Dougherty, secretary and general man
ager. There will be approximately 125
agents from nine states in attendance.
During the month of August the annual
“ Home Sweet Home” contest will be
held and the agents Avho make the best
records will qualify for the trip to the
home office. A speaker of national repu
tation in the insurance world is always
secured for the meetings. As usual, Mr.
Dougherty will entertain the visitors to
the congress at a picnic on Saturday
afternoon.
Open Indianapolis Agency
The Central Life of Des Moines, Iowa,
has opened an agency at 631 K. of P.

NORTHWESTERN

BANKER

building in Indianapolis. Lynn S. Broaddus is appointed general agent. He for
merly was general agent for the company
at Peoria, 111. At one time he was con
nected with the Northwestern Mutual Life.
Associated with Mr. Broaddus in the lo
cal agency will be Patrick P. Harrity and
William R. Gavin.
Lincoln National Life Appointment
J. Warren Stevens has been appointed
district manager for the Lincoln National
Life of Indiana at Lincoln, Neb. Mr. Ste
vens has been in the insurance business at
Marshalltown, Iowa. He will now have
charge of the territory in about half of

The DesMoines

Life“ »Annuiti?
Comban?
'T he Company of Co - operatio n ’

September, 1924

Nebraska and will open offices in the First
National Bank building in Lincoln.
Fire Losses
The fire waste of the country, which
has been running abnormally heavy for
some time past, has now taken a very en
couraging turn for the better. The July
losses in the United States and Canada as
compiled from the daily records of the
Journal of Commerce reached $23,968,800, which, although somewhat larger than
the June figures, is a material reduction
from the loss record of July, 1923, and
almost 40 per cent below the figures of
July, 1922. July, as well as June, was
far below the monthly average of the past
three years in the matter of property de
stroyed by fire.
The fire losses for the first seven months
of the current year aggregated $205,065,050 as compared with $249,540,950 for
the same period in 1923, a reduction of
something over 20 per cent. The follow
ing table gives a comparison of the losses
month by month for the first seven months
of this year and the two preceding years:
1922

1923

1924

Jan. . .$ 38,663,000 $ 36,614,850 $ 41,243,600
F e b ...

Mar. . .
April .
May..

What to Look for in a
Life Insurance Agency
There is one paramount requisite in the selection of a life
insurance agency.
It is “ the making’ ’ of a successful agency.
The one thing is—persistent, never-ceasing cooperation from
the home office.
Ever since the founding of this company we have maintained
a definite, solidly-hacked policy of service to our agents.
It is the warm personal kind of cooperation that makes for
easier work and greater production.
This is hut one o f the outstanding features of the Des Moines
Life and Annuity Company.

J. J. SH A M B A U G H , President

June .
J u ly ..

29,304,300
39,910,750
31,009,750
29.869,950
24,102,850
36,667,750

42,774,800
41,159,650
32,638,150
34,015,850
34,851,900
27,490,750

31,447 900
28,406,150
31,815,900
27,832,300
20,350,400
23,968,300

T o ta l $229,527,350 $249,540,950 $205,065,050

The Journal of Commerce says:
“ With the welcome drop in the burning
ratio of the country there comes evidences
that general business conditions are on a
more satisfactory basis, at least in so far
as the moral hazard is concerned. The
liquidation of unsound trade conditions
by bankruptcies or fires appears to have
been fairly well completed. Managing
fire underwriters are in a much more
cheerful frame of mind over the situation,
and despite the heavy losses of the first
few months of the year are hopeful that
the completed record for 1924 may even
show an underwriting profit. As the
cheaper money has produced material ad
vances in high grade bond values, which
are largely held by fire companis, it is
not improbable that in general the com
panies will have an opportunity to add to
their surplus accounts.”
Takes Over New Line

OINESLIFE
AND ■
AnnuityCgmpany
BES MOINES

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Federal Reserve Bank of St. Louis

The Continental Casualty Company of
Chicago has signed a general agency con
tract with the McKinney-Lantz Company,
Des Moines, Iowa.
WiU Enter New States
The Federal Surety Company of Dav
enport, Iowa, will soon operate in three
more states.
General Manager W. L. Taylor has been
instructed by the board of directors to ap
ply for licenses in the states of Florida,
Georgia and Wyoming. It is expected

September, 1924

THE

NORTHWESTERN

BANKER

that the company will be ready to open
offices in these states within a month.
Wyoming will be handled from the Den
ver office.
Addition of these states to the Federal
Surety territory will find the company op
erating in twenty-four states and the Dis
trict of Columbia.
Is Appointed Manager
James C. McKinley is appointed man
ager at Omaha for the Des Moines Life
& Annuity. The company has just en
tered Missouri.

Past Accomplishments

Is New Sales Manager
George R. Whitney, at one time execu
tive head of the Central National Life of
Lincoln, Nebraska, has been appointed
general sales manager for the Midwest
Life of Lincoln. Mr. Whitney was a suc
cessful salesman of insurance when he
organized the Central National in 1907.
In less than eight years he had nearly
$10,000,000 of insurance in force, and
made a neat profit, when in 1915 he sold
the company to the Central States of St.
Louis.

Tell Much of the Future
Two outstanding records of progressiveness, grow
ing leadership and agency development in the life
insurance field are those made by
THE STANDARD LIFE INSURANCE CO.

and
THE INTERNATIONAL LIFE INSURANCE CO.

Today these two leaders are linked together for
greater service to you and your policyholders.

Since then Mr. Whitney has been en
gaged in the manufacturing business in
Lincoln, but the work was not congenial.
For some time he has been debating the
foimation of a new company or making
an executive connection with an existing
one.
Is Insurance at Saturation Point?
The following question is asked by
Merle Thorpe, editor and publisher of
The Aation s Business: “ If a man owns
a motor car, does it indicate that his in
come makes it necessary for him to file
an income tax?”
hich, to the insurance man, suggests
another question: Is the income of the
average life insurance policyholder large
enough to require an income tax to be
filed? In other Avords, to what extent is
life insurance considered an actual neces
sity?
In ansAvering his question about motor
cars and income tax returns, Mr. Thorpe
says:
For the whole United States, there Avas
in 1922 one motor car to every 8.6 per
sons, or tAvisting it about, 11.57 in every
hundred persons owned a motor vehicle.
Li 1921, the last year for Avhich figures
are available, 6.28 persons in every hun
dred, or one in sixteen, made an income
tax return. More automotive vehicles,
both trucks and passenger cars, than in
come tax returns, by nearly tAvo to one.”
And after quoting further figures on
the various states, he says in conclusion,
“ These figures go to back up what the
auto folks say—that the ‘horseless car
riage’ of only tAventy years ago is out of
the luxury class.”

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Federal Reserve Bank of St. Louis

Drawn together on a basis of mutual interest, two
great organizations are working harmoniously for
Bigger and Better Production.
Here are real opportunities for General Agents—
and Agents.
Think of the profit you can derive from a connec
tion with these forward-moving life insurance forces.
|
=
=

A connection Avitli either, or both of these companies, is open to clean, progressive life insurance
men.

J.R. P A I S L E Y
PRESIDENT

W.K.WHITFIELD
V/CE PRESIDENT

IN S U R A N C E C O M P A N Y
ST. L O U I S , M I S S O U R I .

THE

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

........ ................. .

379 %
Greater Reserve
The N A T IO N A L LIFE Has on Deposit
with the Iowa Insurance Department a
379 per cent greater Reserve than required
by law, A FA C T indicating the progressive
and substantial character o f this Des
Moines Company— and o f interest to every
thinking banker.

DIRECTORS
James P. Hewitt
E. T. Meredith
Clyde E. Brenton
Harry F. Gross
M. L. McCoy

James P. Hewitt, Pres.
E. S. Kinney, Secy.

September, 1924

BANKER

To state these figures another way,
about 12 per cent of the people in the
United States own automobiles and about
6 per cent make income tax returns. Now,
how do figures on life insurance compare ?
On the assumption that the average life
insurance policyholder carries two poli
cies, it is estimated that 48 per cent of
the people in this country carry life in
surance. This would seem to indicate that
life insurance is not only firmly estab
lished as an absolute necessity, but is con
sidered as such by eight times as many
people as have incomes sufficient to re
quire an income tax return and four times
as many as own automobiles.

National Life Association
Home office
■ |
Business in Force $82,000,000.00
DES MOINES i l -----------------------------------------------------------------------------------------------------IOWA

Save 30%
On Your Automobile Insurance

You \
|Should Know j

Y ou can save 30 per cent on your A u tom obile Insurance by
placing it with these companies.

For sixteen and one-

We write—
Autom obile Liability and Property Damage.
Autom obile Fire and Theft.
Autom obile Plate Glass.

— also General Plate Glass Insurance.
Thousands of policyholders can tell you of the savings we
have made possible for them— and of the unqualifiedly square
treatment they have received.
As a banker you should take advantage of the 30% savings.

half years it has symbol-

ized a superlative pro-

t e c t i o n rendered the

business and profession-

al man who realizes the

value of protecting his

income against loss as

the result of accident or

sickness.

As a bank you can safely recommend this insurance— and this
company.
— And then— why not “ cash in” on the popularity of these
companies through your Insurance Department.
W rite us about our rates and
our banks agency proposition.

Iowa Mutual Liability Insurance Go.

You can heartily rec-

ommend INTER -STATE

protection to your depos-

itors— and to yourself.

j Inter-State |
Business Mens Acc. Ass’n

Iowa Automobile Mutual Insurance Go.
J. \V. LOVELLETTE

Brown Hotel Bldg.
DES MOINES, IOWA
1

E R N E S T W . B R O W N , S e c y .-T r e a s .

Secretary— General Manager

CEDAR

RAPIDS,

IOWA
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Federal Reserve Bank of St. Louis

¡September, 1924

THE

A statistician has said that the average
man spends 40 per cent of his income on
his own personal expenses and invest
ments and the remaining 60 per cent goes
to support his family. His family will
need this 60 per cent after his death.
Upon this assumption, when it is realized
that only 7 per cent of the total income
of the United States is protected by life
insurance, it may be seen that the aver
age man is only about one-eighth insured.
Further evidence of this may be ob
tained from the fact that in England, 16
per cent of a man’s income is exempted
from income tax if invested in life insur
ance. In the United States, about 2 per
cent of the total annual income is paid
for life insurance. Hence, under the
English estimate we in the United States
are only one-eiglith insured. — The
Equiowa.
Moves to Sioux City
M. Ehlrich, of Cedar Rapids, Iowa, has
moved to Sioux City and has opened a
general agency of the Guaranty Life of
Davenport. The new company will be
located in the Davidson building.
Getting the Signature
Are you using the “ Mechanics of the
Close?” Even since the stone age men
have been protecting themselves with a
proverbial “ N o” to any proposition o f
fered them. Therefore, if you wait until
your prospect says “ Yes,” you wait in
vain. Take his implied consent by ask
ing:
“ Where were you born, Mr. Smith?”
or,
“ What is your w ife’s first name, Mr.
Smith ? ’ ’ or,
‘ ‘ Let me advise that you make your in
surance payable in installments, Mr.
Smith.
These and many other questions on a
minor point are entirely practical. Get
his decision on a minor point, and then
write out the application. If he doesn’t
want it he will stop you. The salesman
who wavers is lost.— New Jersey Agency
Bulletin, Equitable Life of Iowa.
Listening
Modern salesmanship is not talking, it
is listening. Give me the salesman that
can show an expression of pleasure and
interest while the buyer is talking, and
let him talk. Give me the salesman that
can give the buyer just enough talk to
guide him along so that he eventually
sells himself. The salesman of today is
the salesman who can listen as well as
talk.—Williamsport Agency Bulletin,
Equitable Life of Iowa.
“ Don’t try to step on the other fel
low’s toes.” America is not a “ one-man
tow n;” all have equal rights.— J. E.
Newburn.

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Federal Reserve Bank of St. Louis

N O R TH W E ST E R N

BANKER

The Crime Wave
The papers are full of successful attempts to rob apparently
well protected messengers who are carrying money, and to
enter and plunder the strongest safes and vaults.
No mechanical device nor personal supervsion assures the
safety of money and valuables entrusted to your care.
Definite assurance of protection can be given only by
insurance.

Federal Surety Company
Davenport, Iowa
The Federal Agent in Your Community Is Waiting
to Serve You.

Salary Continuance Policy
O F F IC E R S

E. M. S E A R L E , Jr.

President

H. E . W O R R E L L
S e c .-T r e a s .

Pays fifty dollars, one hundred dollars,
one hundred fifty dollars, or two hundred
dollars a month (first payment im
mediately upon receipt of proofs of the
death of the insured) and continues the
payment of like amount for stated periods
of from six months up to twenty years.
Ask us more about it.

Omaha Life Insurance
Company
OMAHA, NEBRASKA

Of Interest to Bankers

The John Hancock Budget and
Account Sheet
is a simple and effective scheme for keeping track of
home expenditures.
We shall be glad to furnish banks or their representa
tives with copies on request.
Write for your copy to:
H A R R Y S.

HAS KI NS , S t a t e
701-703 H I P P E E B U IL D IN G
DES MOINES .

IOWA

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

Agent

THE

N UR T H W ESTERN

BANKER

September, 1924

The Modified Reserve Fund
Plan of Life Insurance
B y E. S. K IN N E Y
Secretary National Life A s s ’n, Des Moines

ID you ever stop to consider what a
difference there might be in the finan
cial circumstances of many families
in your community if the institution of Life
Insurance had never been developed?
Are you exerting your influence to increase
the benefits of this institution by recommending
Life Insurance to your customers?
Western Life, of Iowa, represents the high
est development of Life Insurance service to
Policyholder and Beneficiary.
Through years of contact with Western Life
the readers of The Northwestern Banker have
become familiar with the consistent, fair and
liberal methods employed in executing its
service.
We have open territory for local Agencies in
Iowa, Minnesota, South Dakota and Nebraska.

nsurancoCompan/
‘OUT OF THE W EST COMES THE BEST’

Get Closer to Your Customers
To recom m end and sell the Iowa National Fire policy
to your customers will create a closer and more intimate
relationship that will be well worth while in future
transactions.
Hundreds o f Iowa bankers know the Iowa National Fire,
its officers and the popularity it enjoys among not only
business men but the entire state.
FRANK L. MINER
President

O. M. SPENCER
Vice President and Secretary

C. S. VANCE
Vice. Pres. & Underwriting Mgr.

Iowa National Fire Insurance Company
DES M O IN E S, IO W A

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Federal Reserve Bank of St. Louis

To present all sides of debatable
questions is a fundamental requisite of
honest journalism. In accordance with
this policy of fairness to all, the North
western Banker is publishing the fol
lowing article comparing the plan of op
eration of business life associations with
that of legal reserve companies. The
author is Mr. E. S. Kinney, secretary
of the National Life Association, Des
Moines, one of the strongest of the
former type of company.— E d i t o r ’ s N o t e .

Out of the assessment idea in life
insurance, a plan has been evolved which
provides for continuous level premiums
sufficiently large to cover the mortality
requirements based upon up-to-date mor
tality tables, and a modified reserve as
an added safeguard against fluctuation.
The leading life insurance associations
have been following this plan for several
years and their financial statements fully
demonstrate that prevailing rates are
adequate to carry out policy contracts.
The National Life Association of Des
Moines, Iowa, has been a leader in the
movement and from its own experience
has been able to demonstrate that insur
ance can be written under policy con
tracts which contain no cash surrender
or extended insurance values at very
much lower rates than required under
the legal reserve system. The associa
tion has been in operation for twentyfive years, has insured nearly 100,000
lives, has paid over $5,300,000 in benefits
and yet has accumulated from the sav
ings in mortality, salvage from lapsation and from interest earnings assets
totaling over $2,500,000, a large part of
which is held for the express purpose
of guaranteeing level premiums. Under
the present modified reserve plan, which
has been in use for a few years only,
the association has shown larger in
creases in its emergency reserve funds,
in proportion to the volume of business
carried, than ever before. At no time
in its history has it been necessary to
draw from these funds to assist in the
payment of losses and no policyholder
has ever been asked to pay more than
the stipulated rate at which his policy
was written.
A lower expense loading is another im
portant factor in reducing the insurance
cost, the average loading being about
one-half that charged by most other
companies.
It is a well-known fact that the actual
mortality experienced by life insurance
companies is 30 per cent less than the
expected under the American experience
table, while interest earnings are consid
erably in excess of that required to main
tain the legal reserves. The National
Life may be expected to have about the

September, 1924

THE

same mortality experience of other com
panies but its reserve funds are further
increased by the full interest earnings
on invested securities.
There is nothing mysterious about the
mortality cost for insurance, statistical
information bearing on the subject is
very complete and comprehensive; the
average paid by legal reserve compa
nies for 1923 was slightly less than $10
per $1,000 of insurance in force, while
the average premium collected was
nearly $35 per $1,000. It is true that
large amounts were returned to policy
holders in the form of cash surrender
and loan values, but if we eliminate
those appendages and provide in the
policy contract for the payment of death
losses as they occur, it is apparent that
life insurance can be safely written at
the lower rates charged by the associa
tions. They are benefactors to the in
surance-buying public, in that they fur
nish what has come to be one of the most
important commodities in the economical
life of the nation, at a cost that puts in
surance within the reach of almost every
insurable citizen.
First Policies of New Fire Company
Judge J. W. Bollinger, of Davenport,
is the first client of the new Central Fed
eral Fire Insurance Co. of Davenport,
according to a report of the first policies
issued by the company.
Fire insurance policy No. 1 as issued
by the company, goes to Judge Bollinger,
who is president of the Security Fire In
surance Co. The policy is for loss of
rental value on a house, similar to the
ordinary “ use and occupancy” insurance.
The first automobile policy issued by
the company was secured by Rolland W.
Crook, covering fire and theft on a new
Marmon sedan.
The Central Federal Fire Insurance
Company starts business in Iowa and will
soon apply for a state license to operate
in Illinois and other states.
New Agency Supervisor
President J. J. Shambaugh has an
nounced the appointment of H. B. Brossert as agency supervisor of the Des
Moines Life and Annuity Insurance Com
pany.
Mr. Brossert was formerly agency
manager of the Dakota Life, having been
connected with that company for the
past seven years. For five years previous
he was tvith the Equitable of New York.
Mr. Brossert is a former Iowa citizen
and says he is “ glad to be back in the
Hawkeye state.”
In order to become acquainted with
the agency force of the Des Moines Life
and Annuity he is holding a series of
agency meetings throughout the com
pany’s territory.
He who is firm in will moulds the
world to himself.— Goethe.

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

100 Per Cent

Efficiency
L ife m en find o u r m e th o d s b r in g th e ir e ffic ie n c y up to 100 p e r cen t.
W e c o n s id e r e v e r y m an in s u r a b le a n d r a te e a ch ca se on its o w n im p a ir m e n t an d a m ou n t
o f r is k in v o lv e d .
W e ta k e th e “ B lu e S u n d a y ” o u t o f th e life in s u r a n c e b u s in e s s b y h e lp in g y o u s a lv a g e
y o u r w a s te d e n e r g y ex p en d ed ' o n S u b -S ta n d a r d b u sin e ss .
W e h a v e e v e r y t h in g in th e life g a m e to o ffe r. L e t us t e ll y o u h o w .

e d ic a l l i f e

INSURANCE

COMPANY

W ATERLOO
I. G . L O N D E R G A N , V ice P re s id e n t & G e n ’l

M gT.

OF A M E R I C A
IOW A
E . E . B R O W N , A g e n c y S u p e rv isor

N O R T H
LIFE

D O U G L A S

W E S T E R N

I N S U R A N C E

AND

S E V E N T E E N T H

COMPANY

O M A H A , N E B R A S K A

Opportunity for Bankers
Here is a company that has made wonder
ful progress within the past year, due, the
officers and directors think, to the close
relationship with their bank and banker
agents.
There are several very wonderful agency
openings for wideawake banks and bank
ers. If you are interested write today—
you will receive prompt attention.

Policyholders A re Not Born
T h e y A r e M ad e— O nce M a d e , T h e y A r e W o r t h K e e p in g

One o f th e L in c o ln N a tio n a l L ife p o lic y h o ld e r s a t S a n ta A n a
C a lifo r n ia , d e cid e d to d ro p h is p o lic y b e c a u s e he la c k e d th e r e a d y
m o n e y fo r th e th ir d a n n u a l p rem iu m .
B u t o u r field m a n th e re , G. J. G ilb e rt, a d v is e d h im to c h a n g e h is
fo r m o f p a y m e n t to th e M o n th ly P re m iu m P la n . H e n o t o n ly sa v e d
th e b u sin e ss , b u t w r o t e th e p o lic y h o ld e r $4,000 a d d itio n a l u n d e r th e
M o n t h ly P re m iu m P la n .
L in c o ln N a tio n a l L ife field m en a re su re th a t th e ir M o n t h ly P r e
m iu m P la n is a n o th e r g o o d r e a s o n w h y it p a y s to

The Lincoln J\[dtiondl Life Insurance"; Company
“ Its Name Indicates Its Character”
Lincoln Life Building
Fort Wayne, Indiana
Now More Than $325,000,000 in Force.

THE

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

BANKER

September, 1924

President’s Club Holds Annual
Outing
HE 1924 annual outing of the Presi
dents ’ Club of the Western Life,
Des Moines, held July 27th to 29th
at Spirit Lake, Iowa, was the most suc
cessful and enjoyable meeting ever held
by this organization which is made up
of the 1923 one hundred thousand dol
lar club members and those agents who
had written $100,000 between July, 1923,
and July, 1924. There are fourteen mem
bers of the $100,000 club and nine others
qualified during the past twelve months.
This group represented $2,750,000 of
business.

President J. H. Jamison, Assistant Sec
retary Harry D. St. John, Medical Di
rector M. L. Turner and Auditor W. P.
Phillips were home office executives in
attendance at the outing. Dr. W. L.
Bywater, of Iowa City, was a guest and
speaker at the meeting.
Sunday, the first day of the outing,
was a day of social recreation, with
launch riding in the afternoon and com
munity singing in the evening. On Mon
day morning, the club held a fishing con
test, Sam Y. Baldwin winning the prize
for the boat having the largest number
of fish, and Dr. Turner winning laurels
for catching the largest fish— a four and
one-quarter pound beauty. In all, 157
game fish were hauled in by the Western
Life Isaak Waltons. B. B. Brown and
Albert Anselme were presented with
“ Ananias” certificates for the best fish
stories told during the meeting.
Monday afternoon the club members
and their ladies were treated to a steamer
ride to Lake Okoboji by the Spirit Lake
Commercial Club. The evening was de
voted to a chicken dinner at the Knight
Templar Hotel, at which the diamond and
gold pins were presented. Diamond pins
were awarded to three men for their
production records of $250,000 each. In
dividuals so honored were: J. A. Best,
Chariton; F. O. Gregg, Waterloo; and
Sam Y. Baldwin, Fonda. Dancing was
then indulged in through the courtesy
of the hotel management.

The Iowa Bank Directory
Second 1924 Edition
Ready for distribution September 30th

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Federal Reserve Bank of St. Louis

Tuesday afternoon the annual meeting
was held and Rev. James E. W olf of
Des Moines spoke on ‘ ‘ The Profession
of Life Insurance.” Talks were made
by Senator Jamison, the club president,
and by club members. In the evening
was held the annual banquet, with Mr.
St. John as toastmaster. Toasts were
given as follows: “ Our President,” B.
B. Brown; “ The Outing,” Rev. W olf;
“ Observations,” Dr. By water; “ The Re
jection,” by Dr. Turner, and “ The
Ladies,” by Col. Robert St. John.
Agencies from Minnesota, Iowa, Ne
braska and South Dakota, participated
in the meeting.

September, 1924

THE

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

BA N K E R

“ R E S T IT U T IO N — A B R E E D E R OF
B A N K CROOKS

(Continued from page 21)
fear that one may be charged with failure
to follow the old command: ‘ You are your
brother’s keeper.’ The former will not
stand up under the smallest amount of
reasoning, for what do we profit by ac
cepting an offer to reimburse us for one
particular loss when in doing so we invite
and practically guarantee subsequent
losses? While figures are not of course
available, there are many facts to sub
stantiate a statement that every dollar of
restitution results in five dollars of future
losses. The second motive— a desire to
lend a helping hand to those who have
slipped or to comfort the family of the
wrongdoer, especially a heartbroken
mother— is more commendable and al
ways more difficult to resist. But resist
it Ave must, for records and figures will
amply prove that we best perform our
duty to society when we insist that crime
of all nature be speedily followed Avith
adequate punishment.
“ These paragraphs are intended prin
cipally as a plea for ‘ No Restitution’ in
cases originating from attacks from with
out. As further proof that the situation
is serious, the Tribune and Evening Post
have commented editorially during the
past week on the statement issued by the
president of the country’s largest surety
company. He calls attention to the star
tling fact that during 1924 defalcations
will not be less than $125,000,000. These
are attacks from Avithin, ahvays more
difficult to prosecute because of a per
sonal acquaintanceship with the defaulter
and other mitigating circumstances, but
his remedy is the same— apply the laAv
vigorously. The stand taken by this com
pany in adopting a policy of refusing to
intercede for bonded defendants, even in
extreme cases, Avas endorsed by the tAvo
editorials referred to. The surety com
pany’s statement concludes: ‘ If the laAv
has any value in stiffening and revitaliz
ing moral concepts, it must be applied
vigorously and Avithout exception.’
“ It is Avithin the poAver of you and
your felloAv bankers to decrease mate
rially the number of attempts made to de
fraud you. Protective bulletins will help,
other measures will also aid, but by far
the most satisfactory result can be ac
complished by an umvavering policy of
‘ Eternal Vigilance, No Restitution and
Vigorous Prosecution.’ ”
Any attempt to lower a man’s reputa
tion in that one point where he is am
bitious to be distinguished is never for
gotten or forgiven.— Haydon.

Established for Your
Custom ers’ Needs
The Universal Life is an Iowa Company of honest,
competent, progressive, yet conservative business men.
Just the kind you, as a banker, loan money to or select
for your institution.
Hundreds of banks and bankers have made very profit
able connections with this company. You can serve
your customers and at the same time hook up with
the right company.
Write Us Today.

U N IV E R S A L
Iv i F E

IN S U R A N C E

CO .

D U B U Q U E , IO W
‘ t i m v e x 'v 'a U i /

T !h .e

B e*^ i

Mutual Trust
Life Insurance Company
WRITES—
Children— $ 500 age one.
$1000 age two.
Self-supporting Women— granting all
privileges of men.
Business and Professional Men— on
“ Special” Ordinary Life Plan. Com
pare the rates.
All regular forms of Life Insurance.
SU RPLU S_________________ $ 1,082,654.86
T h e Ci.

„ V em p ie

Admitted Assets___________

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Federal Reserve Bank of St. Louis

10,941,045.07

B u ild in g

W e in v ite y o u r in v estig a tio n o f ou r
B a n k A g e n c y P la n

Eriend: I suppose thee ’re kept purty
busy diggin ’ graves ?
Sexton: Sometimes I am, and some
times I ain’t. The trouble is people
won’t die regular.— Sydney Bulletin.

CHICAGO, ILLINO IS

THE

NORTHWESTERN

September, 1924

BANKER

LEGAL DEPARTMENT
(Continued from page 24)

^ Health

“I Get Service—I’ve
a Friend in the
Home Office”
T>O LICYH O LD ERS and
A representatives of the
Great Western Insurance
Company all DO HAVE
“ A Friend in the Home
Office " and they DO GET
just that kind of attention.
Your patrons will appreci
ate this special personal
service.

Y o u r b a n k ’s in su ran ce d e
p a r tm e n t sh o u ld g e t in
to u c h w ith us fo r life , and
h ea lth an d a ccid en t se r v ice
fo r y o u r p a tron s.

GREATWESTERN
INSURANCE CO.
DES MOINES IOWA
“ T h e C o m p a n y T h a t Is D iffe r e n t ”

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Federal Reserve Bank of St. Louis

P resid en t
H . B. H aw ley
V ic e P resid ent
W . Gr. Tallm an
S ecretary
R . D. E m ery

taxation of banks and bank’s property
of other description.
National banks are instruments de
signed to be used to aid the government
in the administration of an important
branch of the public service. Congress
having brought them into existence is
the sole judge of the necessity for their
creation. The states can exercise no con
trol over them, nor in any wise affect
their operation, except so far as it may
seem proper to permit. The state has
no power to authorize any taxation of
national banks except such as is per
mitted by the National Bank Act.
The capital of national banks is not
taxable by the state. It seems clear that
surplus of such banks cannot be taxed
by the state and it has so been held in
court decisions.
When national bank
shares are taxed at their actual value,
such value beyond their normal or par
value is imparted to them by the sur
plus or undivided profits of the bank,
and in that way, indirectly, the surplus
is taxable. But direct taxation of sur
plus does not seem to be authorized.
The question was whether or not Con
gress had authorized the states to tax
the surplus of national banks. How
ever, it may be mentioned that the obje: t of the restrictions of the National
Bank Act is to prevent discriminations.
FINANCIAL ADVERTISERS
CONVENTION
(Continued from page 26)
Laid off in 1861, and the
burial ground of 16,000 Confederate sold'ers killed in the fighting near here.
S h o ck o e H i l l : One of the oldest in the
city; buried here are John Marshall; the
Allan family with whom Poe lived; Miss
Van Lew, the famous Federal spy; and
Peter Francisco, Revolutionary War hero,
whose sword was five feet long, who
could lift an 1100-pound cannon and who
defeated nine of Tarleton’s cavalrymen
in hand-to-hand combat.
A n c ie n t J ew ish C e m e te r y : The oldest
in the United States.
N a tion a l C e m e te r ie s : Two are main
tained by the government in memory of
Federal troops who fell in the fighting
around Richmond and who are buried
here.
O akw ood:

Interesting Places
New, but incorpor
ating a part of the Treasury Building of
the Confederate States, where offices of
the President and other officials were lo
cated; in this building Jefferson Davis
seven times demanded trial of the United
States Government but was never brought
to trial, although indicted for high trea
son; the case finally was dismissed here.
T red eg a r Ir o n W o r k s : Established in
(Continued on page 86)
F e d e ra l B u ild in g :

THE

September, 1924

G l o b e

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

BA N K E R

R u t g e r s

Fire Insurance C o m p a n y
111 William Street, New York City

JANUARY

1, 1924
LIABILITIES

ASSETS
Bonds and Mortgages....... $

493,500.00

Capital

U. S. Liberty Bonds........... .

745,400.00

Surplus ........

Government, City, Railroad
and other Bonds and
Stocks .... ............................. 40,140,839.47

....................... ........ $ 3,500,000.00
.............. ........ 15,692,715.02

Reinsurance Reserve....... ... 19,763,165.41

Cash in Banks and Office.....

2,546,217.38

Losses in course of Adjustment ....... ............................

Premiums in course of Col
lection ................. ....... ........

8,482,604.96

Commissions
Items .......

Interest Accrued............... .

365,938.44

Reinsurance Recoverable on
Paid Losses.........................

118,775.18

5,232,395.00

and
other
.......... .............

6,200,000.00

Reserve for Taxes and Depreciation ...........................

2,505,000.00

Total.................... ....... $52,893,275.43

Total ........................$52,893,275.43

Surplus to Policyholders

- $19,192,715.02

E. C. J ameson, President

L yman Candee, Vice President
J. H . M ulvehill, Vice Pres, and Sec’y
W . L. L indsay, Secretary
G. C. Owens , Assistant Secretary

Morrison & Company

W . H . P aulison, Vice President
J. D. L ester, Vice President
A . H . W itthohn , Secretary
M. J. V olkmann , Local Secretary

Building

Omaha, Nebraska

State Agents for NEBRASKA, IOWA, COLORADO,
KANSAS, SOUTH DAKOTA AND WYOMING.

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

September, 1924

W IN D O W D I S P L A Y A R R A N G E D B Y O N E O F O U R C H I C A G O

Thousands
o f Dollars
from these metal
banks are depos
ite d h ere every
day.
O pen

an account
NOW

W ITH

$122 O R

LE T OUR M ETA L BANK
HELP Y O U

SAVE

Ask f or booklet

CUSTO M ERS

Over
TH IS C H IC A G O B A N K

3 0 ,0 0 0

Finds our H om e Safes to be a highly efficient
means o f securing and developing savings
accounts.

o f th ese m eta l
banks being used
by our depositors.
There is one here
fo r Y O U .

116 other Chicago Banks will likewise attest
the value o f our H om e Safes as a deposit
building medium .
3 5 Styles

—

Samples Upon Request

TheAUTOMATIC
Recording safe Co.
159 -NORTH* STATE •STREET

C H IC A G O
E S T A B L IS H E D

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Federal Reserve Bank of St. Louis

YEARS

Start your account
N O W with $122 or more.

Ask f o r booklet

September, 1924

THE

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

BA N K E R

IO W A FARM M O R T G A G E S E C T IO N
T h e N o r th w e s te r n B a n k e r Is th e O fficial P u b lic a tio n o f th e
Io w a F a r m M o r tg a g e A sso c ia tio n

O F F IC E R S

P re sid e n t..................................................................E. H. Loug-ee, C ouncil Bluffs
V ice P r e sid e n t....................................................... F ran k B. M iller, Cedar F alls
T r e a s u re r......................................................................F ran k Sage, W a sh in gton
S e cre ta ry ....................................................................F. C. Fisher, Cedar R apids
E X E C U T IV E

C O M M IT T E E

V arick C. C rosley, e x -o ffic io ........................................
Geo. W . W illia m s .............................................................
D aniel R h o d e s ......................................................................
V a rick C. C ro s le y .......................................................
E. H. L o u g e e ..................... .. . . ..........................................
I. C. S ta n le y ..........................................................................
F. C. W a p le s ........................................................................

.W e b s te r City
. . .D es M oines
. . .F o r t D odge
.W eb ster City
C ouncil Bluffs
.C edar R apids
.C edar R apids

Facts and Figures A bout the
Great Corn Belt
ERHAPS the greatest single factor
in the economic structure of our
country is the success or failure of
the American farmer and especially the
farmer in the Corn Belt. A view of the
economic conditions of the Middle West
can perhaps be best learned by a view
of three situations each bearing on the
other— farming, banking and the farm
mortgage situation.

The farmer has suffered, primarily
from two causes: first, over-production
resulting from the war, and second, the
difference between the prices he re
ceives for his products and the prices
he has to pay for the articles he pur
chases'.
The farmer is gradually adjusting his
acreage so that he will not have the over
production of crops which has resulted
in a decreased price for what he pro
duces.
For example, the acreage in
wheat in 1914 was 53,500,000 acres. In
1919 it had increased to 75,500,000 acres.
Last year, or in 1923, was the first year
that the average was reduced to some
where near the pre-war level.
The study of wholesale commodity
prices shows that the index number for
these commodities declined from about
the middle of March, 1924, to the first
of May, and since then has increased
slightly, which means that the farmer
can buy more per dollar than he could
a few months ago. In June, 1920, which
was the peak of inflation period, the in
dex of prices was 241 and represented
the prices paid to farmers for farm
products. The decline in five months,
from August to December inclusive, in
1920, was from 239 to 147. In a year
prices declined from 241 to 108. It is

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Federal Reserve Bank of St. Louis

By Clifford DePuy
Publisher N orthw estern Banker

not hard to see therefore why the
farmer was so depressed.
The situation, now, however, is rap
idly improving, as indicated by the in
crease in the total farm income, which
has advanced from $7,000,000,000, dur
ing the deflation period, to $9,000,000,000
for the. present crop year. This may be
compared with the total farm income
at the peak of prosperity of $14,000,000,000. Again it must be remembered that
only 7.2 per cent of the farmers of the
northwest have either gone into bank
ruptcy or been in danger of bankruptcy,
and in many of these cases bankruptcy
was due to inexperience or incompet
ency. Failures among competent farm
ers have been less than 1 per cent and
not proportionately greater than among
merchants and manufacturers.
With our population increasing at the
rate of 1,500,000 per year the Depart
ment of Commerce has estimated that in
a relatively short number of years we
will have no more wheat for export but
will begin to import for our own needs.
If this is true in connection with wheat
it is likely to be true with other prod
ucts, and if such is the case the farmer
will reap a reward for his efforts greater
than anything that he can conceive of
at this time.
In a recent trip through the middle
west the writer talked with hundreds of
bankers and they were practically unani
mous in the statement that conditions
in their own communities were improv
ing and that the farmer was in a much
better condition than he had been.

One banker told of a farmer who had
refused $250 an acre for a farm near
Fort Dodge, Iowa. The president of a
large bank in Omaha said they had not
borrowed money themselves, that their
deposits were increasing and they were
having practically no demands from their
correspondent banks in Nebraska for ad
ditional funds. In a letter received just
recently by T h e N o r t h w e s t e r n B a n k e r
from a North Dakota banker, he gave the
statement of his own bank and of the
other banks in his city, and showed that
none of them had any rediscounts or
borrowed money and that the community
was in a very prosperous condition.
A 160 acre farm located near Ida
Grove, Iowa, was sold recently for $33,980 and was paid for entirely in cash,
the average price per acre being $211.12.
The owner purchased the farm for $21,000 in cash in 1911 and farmed it until
the winter of 1920, when he moved into
the city. He thus made better than 50
per cent on his investment, and in addi
tion farmed the place profitably for
nearly 10 years.
Many other examples might be cited
to show the improved condition in the
farming communities in the middle west.

Banking Situation
The banking situation, together with
the farming situation, has been steadily
improving. In any period of depres
sion the facts about general conditions
are usually greatly exaggerated. A few
weeks ago a New York City banker made
the statement to the writer that con
ditions must be very bad in Iowa in
view of the 300 banks which had re
cently failed. The facts were that only
31 banks had closed in the state since

THE

NORTHWESTERN

5 %Farm Loans 5 fo
Life insurance com panies have in
vested millions of dollars in Iowa farm
m ortgages. T h ey have m ore funds for
this class of security. U rge yourcustom ers to refinance while the rate is low.
S en d us y o u r a p p lic a tio n s

Stanley-Henderson Company
Farm Mortgage Bankers
207-214 Higlev Bldg.

F arm L o a n s

WE ALSO M AKE 20 AND 34 YEAR AMORTIZED LOANS

M id l a n d M o r t g a g e C o m p a n y
IO W A

220 T H I R D A V E .

O F F IC E

809 F R A N C IS B U IL D IN G
S IO U X C I T Y . IO W A

January 1, 1924, and yet this man, who
was supposed to be an authority had
given the figures as 300.
It is safe to say that every bank in
the middle west which has needed finan
cial support and has been worthy of it,
has had no trouble in financing itself
or its customers. The banker, like the
farmer, has had to learn that diversifica
tion of loans is just as desirable as di
versification of crops.
There is one thing sure, that the bank
ing situation in the agricultural states
will be in a better, firmer and sounder
condition from now on than it has ever
been before, because the weak banks
will have been eliminated and only the
financially strong and ably maintained
institutions will remain.

Farm Mortgage Situation

Cedar Rapids, Iowa

R E F IN A N C E Y O U R 1925 LO A N S
N O W W H IL E R A T E S A R E C H E A P

W ESTERN

September, 1924

BANKER

CENTRAL

CEDAR RAPIDS, IOWA

IO W A O F F IC E

CARROLL
IO W A

F . C . W A P L E S . P r e s id e n t
R . J . S O E N E R S ecretary-T reasurer
C L I F F O R D D E P U Y , V ic e P r e s i d e n t
C L A I R H . P O S T , A s s is t a n t S e c re ta r y
R . S . S I N C L A I R , . V ic e P r e s i d e n t
P . T , W A P L E S , M g r . W e s t e r n O f f ic e
I N G R A M B I X L E R , V ic e P r e s i d e n t

There has been much talk about farm
ers failing to pay the interset on their
mortgages and that many foreclosures
were resulting because of non-payment
of loans which were coming due on their
farms.
In a recent report by the president
of the Iowa Farm Mortgage Bankers
Association, he said: ‘ ‘ There has been
much comment about delinquency in con
nection with Iowa farm loans, and that
there have been an unusual number of
farms foreclosed. If you will turn to
the Iowa Insurance Report for Decem
ber 31, 1923, you will find that twenty
Iowa companies reported assets in
vested in mortgage loans of $129,807,536.95; that they had only $909,526.83
interest past due on that date. Or, in
other words, only .701 per cent of past
due interest to total mortgage loans.
These same Iowa companies had invested
in Iowa $96,220,109.85, or in other words,
74.13 per cent of the total loans were
invested in the state of Iowa. When
you take into consideration that much
of this interest was less than 30 days

Farm Loans
F iv e R ea so n s W h y Y o u W ill
A p p r e c ia te O u r S e r v ic e ]

ED W IN H U L T
P r e s id e n t

1.
2.
3.
4.
5.

We offer liberal rates.
Our Inspection Service is prompt.
We loan up to $100 an acre on Iowa land.
We use our own funds— closing promptly.
Service to applicants is our first thought.

Send us y o u r ap p lic ati on s If you w an t genuine service.

FARM ERS

BOND

M ORTGAGE

F ifth Floor Hippee Bldg.

Twenty-five Years in the Mortgage Business

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Federal Reserve Bank of St. Louis

CO.

DES M O IN ES

H O TEL FO N T EN E LLE
H O TEL RO M E

Omaha

H O TEL LINCOLN

Omaha
Lincoln

H O TEL M O N TR O SE

Cedar Rapids

H O TEL M ARTIN

Sioux City

H O TEL CATARACT

Sioux Falls
Sioux Falls

H O TEL CAR PEN TER

OPERATED BY

The E P P L E Y
H O T E L S CO.
E. C. E P P L E Y , P res.
Executive Offices: Hotel Fontenelle, Omaha
711 Sieger IUdß., Chicago, 111.

September, 1924

THE

past due and that much of it was paid
in thirty days it is a remarkable show
ing.”
What better answer could be
given to prove that delinquency in the
payment of farm loans has been small in
deed and that the number of farm fore
closures has been much less than many
supposed.
General Summary
The farmers are realizing that diver
sification means increased profits. They
are realizing that they must increase the
by-products of their farms, which means
raising more poultry, more sheep, and
more dairy cows. They are realizing that
the panacea for their economic ills does
not emerge from Congress nor from the
wild-eyed promises of misinformed Sen
ators.
Their real success must come
from judicious economy; proper adjust
ment of commodity prices with farm
prices, and from reducing land inventory
prices to a pre-war basis.
The value of farm lands was increased,
during the inflation period, by about
$13,000,000,000. It was to this apparent
“ loss” that the farm bloc senators
pointed when they spoke of the reduced
valuation of farm property, during the
period of deflation. It was a loss of
wealth which the farmers who did not
sell their land, never had. It was a
bookkeeping loss, not an actual loss.
Both the farmers and the bankers
have learned some new lessons in the
school of experience as a result of the
recent period of depression. The foun
dation has been laid for a period of
prosperity which every manufacturer and
business man can well consider in pre
paring his future selling campaigns. In
another month or so the fall crops will
be harvested and the American farmer
will have his first returns on his $9,000,000,000 to $10,000,000,000 cash income.
What finer customer, or what better pros
pect could any manufacturer seek than
the American farmer ?
HOW BANKERS VIE W INCREASE IN
PRICE OF FARM PRODUCTS
(Continued from page 18)
and with the present price there will
be considerable liquidation.
Some of
them have already threshed and the ten
dency seems to be to get it to market, and
reduce their indebtedness, as speedily as
possible.
Corn is backward, but with a favorbale
fall, there will be lots of corn in this
section. The feeling is 100 per cent bet
ter than two months ago and I believe
the “ growing pains in the Northwest”
are over.
R. G. Eilers, Hudson:
1. I believe there is less grain and
corn left in our vicinity than there has
been for many years. In fact, there is
little corn left.
2. There has been some marketing of
new oats and hogs at the increased prices.

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

3. The marketing of the oats and hogs
has enabled the farmers to care for their
labor and other expenses, giving them a
clean slate in this regard, and to make
slight reductions in their claims.
4. Has stimulated the morale of the
farmers and the business men.
If the predominating prices can be
maintained for the crops and stock, it
should enable the farmers of our com
munity to reduce their obligations, which
is the best means of offering encourage
ment to them.
NORTH DAKOTA
Henry S. Grinde, Sheyenne:
1. Grain in our community is pretty
well sold, possibly about 10 per cent left
at this time.
2. Yes. A good many of our customers

/Paper adhered by our
\ e n n n c fA T

(Continued on next page)

International Banking
Service
T N the financing, protection, and disposition of
goods, in the transfer and collection of funds,
in all the varied steps of foreign trade, our corres
pondent banks can be assured of prompt and
efficient cooperation in the use o f the facilities
offered by this Company.
Our booklet, “ Specialized Service
to Banks," will be sent on request.

Guaranty Trust Company
of New York
NEW Y O R K
L IV E R P O O L

LON DON

P A R IS
HAVRE

BRUSSELS
ANTW ERP

THE

NORTHWESTERN

BANKER

September, 1924

For B an kers and T h e ir W ants
This department of THE N O R TH W ESTE R N B A N K E R is to
assist SUBSCRIBERS in obtaining goods or service hard to
find. It is free. Use it. A S K US, as we can tell you where
to buy anything you need in your bank or for your bank.
TELL US, as your “ w ant” will be published under the above
heading free of charge. In answering classified advertise
ments which have key numbers please enclose a two-cent
stamp. This is used to forward your letter.

Wanted: Banking position, preferably
with some Iowa bank, by graduate of
College of Commerce, University of Iowa.
One year experience as teacher. Best
references.
Write 2744, care of the
Northwestern Banker.— 8-9.
Stenographer Wants Position for bank
ing, farm loan, bookkeeping and gen
eral office experience. Write Box 172,
Hampton, Iowa.
At a Sacrifice: Herring Hall Marvin
Bank Safe, slightly stock worn. Two and
one-half cubic feet, triple times with
silver chest. McNamara Office Supply
Co., Des Moines, Icrna.
Position Wanted: Assistant cashier.
Young man 23.
Graduate College of
Commerce, Notre Dame University. Fine
education, clean, ambitious, best of ref
erences. Some banking experience. Ad
dress 2745, The Northwestern Banker— 9.

For Sale: Mosler Patent Maganese
Steel Bank Safe, modern and in good
condition. Also set bank fixtures. Ad
dress 2746, The Northwestern Banker— 9.
Position Desired by young single man
24 with some banking experience in bank
work with either country or city bank.
Can operate Burroughs posting machine.
Pleasing personality and best of refer
ences. Address 2748, The Northwestern
Banker— 9.
Position Wanted by young man as
bookkeeper in country bank.
Several
months’ bank experience. Best of ref
erences. Address 2749, The Northwest
ern Banker— 9.
Position Wanted in country bank by
graduate of College of Commerce, Uni
versity of Iowa. One year’s teaching ex
perience. Best of references. Address
No. 2750, The Northwestern Banker— 9.

Wanted Position in bank by lady 26
years old. Several years*’ experience in
banking, including two years as bank
clerk and four years as assistant cashier
in Selma Savings Bank.
Can operate
Burroughs posting machine, also use
typewriter. Address Selma Savings Bank,
Selma, Iowa.

have sold live stock and grain since the
raise in price.

Wanted Position as assistant cashier
or cashier in country bank. Six years
banking experience. Thirty years of age
and unmarried. College graduate and exservice man. Can furnish best of ref
erences and can qualify for either as
sistant cashiership or cashiership. Ad
dress 2747, The Northwestern Banker— 9.

3. The amount sold has been small so
the reduction would not amount to much,
but we have received some payments as
a result of the sales.
4. It has created a feeling that it is
worth while to stick, as there is now a
chance for nearly everyone to make good.

HOW BANKERS V IE W INCREASE IN
FARM PRICES
(Continued from page 71)

Everyone is feeling better and planning
ahead for better conditions. Credit con
ditions here this fall will be vastly im
proved, at least, if prices stay up. Should
it be possible to get another fair crop
with a fair price, this community will be
right on top.
John Tracy, Valley City:
Answering your questions Nos. 1, 2 and
3, beg to advise that there is approxi
mately little grain left in this territory
from last year’s crops, consequently our
farmer customers have marketed but
very little grain or live stock at the in
creased prices obtainable during the last
three days. However, some very small
grain left over, and the usual and ordi
nary stock shipments of hogs.
These increased prices with respect to
grain or stock on hand has had little or
no effect in the reduction of bank or
mercantile indebtedness. Would not con
sider 1 per cent reduction in indebted
ness in connection.
Referring to question No. 4, believe
that the increase in prices, had we grain
or stock for delivery, would have had
considerable favorable effect; however,
the fact of the increased prices men
tioned has had its moral effect to a great
degree upon the community, and that,
(Continued on page 76)

Steel and Copper Engraved
S T A T I O N E R Y , B U S IN E S S
ANNOUNCEM ENTS AN D CARDS

F or q u a lity w ork address
The

H o m e s te a d

C o m p a n y , D e s M oines,

HIGH CLASS
W ork m an sh ip and Q uality Assured
W hen Y ou O rder From
LE M A R S

P R IN T IN G

COMPANY

M ASON C IT Y , IO W A

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Federal Reserve Bank of St. Louis

HESE institutions are
prepared to sell quality
merchandise and furnish
prom pt shipments.

S old In Io w a by
J. H . W E L C H P R I N T I N G CO.
131 3 -15 L o c u s t St., D e s Moines.
P rin te rs, B in d e rs, M nfg-. Stationers.

FLOWERS AND SERVICE
ALPH A F LO R AL COM PANY
P h o n e W a ln u t 362
J. S. W I L S O N F L O R A L
D r a k e 584
D'ES M O IN E S

CO.

THE

¡September, 1924

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

B A N K ER

News of South Dakota Banks and Bankers
Official Publication South Dakota Bankers Association
E X E C U T IV E C O UN CIL
Sou th Dakota Bankers Association
P resid en t. .F red B. Stiles, V ice P resid en t F irst N ational Bank, W a tertow n
V ice President, Dean H. Lig-htner, Cash. Citizens Tr. & Sav. B k „ A berdeen
S ecreta ry.
.............................................L. J. "Welch, M itchell
T re a s u re r.............................................................................. F ran k B oerger, M ilbank

FRED B. STILES
P resident

E in er Johnson, Group 1 ................................Cashier V olin State Bank, V olm
F. M. E n righ t, G roup 2 ...........P resident H om e N ational Bank, D ell R apids
J. W . Bryant, Group 3. .V ice Pres. Com ’l T ru st & Savings Bank, M itchell
E R. Z alesk y, G roup 4 ....................... P resid en t F irst N ational Bank, E lk ton
Thos'. O’ Brien, Group 5 ............................P resident H oven State Bank, H oven
T. E. Gage, G roup 6 ................................Cashier F arm ers State Bank, G roton
C. d ! Smith, Group 7 ....................... P resident F irst N ational Bank, Lem m on
S J. Clarke, G roup 8 ..............................Cashier F arm ers State Bank, N ew ell
J W . Stew art, Group 9 ....................... P resid en t F arm ers State Bank, D allas

The Bank Guaranty Law in
South Dakota
By K. B. CRESSEY
Vice President First State Bank
Sioux Falls, So. Dak.

There is not a more vital question
facing state bankers of South Dakota
at present than that pertaining to the
guaranty deposit law. What is to be
done by our legislature upon this mat
ter? What should be the policy of our
state as to handling the situation in the
future ?
It is obvious that depositors in state
banks must have returned to them the
founds they deposited in those institu
tions, having been convinced by the
trend of public opinion, as well as propa
ganda permitted by the state itself, that
such funds were absolutely guaranteed
by the state of South Dakota.
While a sentiment prevails that the
law is in theory good but in practice
wrong, it would manifestly be an act
of cowardice and a lasting disgrace to
the entire state should any attempt be
made to repudiate the law or alter its
operation in so far as the deposits in the
present closed banks are concerned. Far
rather than this should the state bond it
self for at least 50 per cent of such de
posits, thereby releasing to the avenues
of business so much of such funds, and
relying upon the good assets of the in
stitutions themselves to pay the re
mainder when liquidated. Surely a state
that can vote bonds for such enterprises
as that of manufacturing cement, and
engaging in commercial business, can
and will protect its own citizenship from
the loss of money deposited in its banks
by reason of the state’s own policy,
adopted by her representatives and fos
tered by her officials.
The guaranty law should stand and be
irrevocable pending the date remedial
and adequate measures such as suggested
shall operate, regardless of the policy or
law governing in the future.

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Federal Reserve Bank of St. Louis

The remarkable improvement during
the past few weeks, both in crop condi
tions of South Dakota and the prices for
our products, is exceedingly encouraging
to the entire commonwealth.
The Guaranty Fund Commission is
finding, from its intimate touch with the
banks of the state, that there is going
to be a great deal more salvage from
the closed banks than had been esti
mated when the institutions became in
solvent.
The state is maturing one of its very
best crops, and the remarkable increase
in prices lately will enable the farmer
to pay at least part of his principal,
which is more than he has been able to
do for the last four years. This, in
turn, will react upon all business activi
ties, and in the end will result in the
closed banks themselves paying out a
larger percentage of their deposits,
thereby automatically relieving the sit
uation, and particularly the guaranty
fund as at present constituted, very ma
terially. Much encouragement is to be
had from these facts.
South Dakota Crop Report
The last semi-monthly crop report, for
South Dakota, prepared by H. 0 . Herbrandson, agricultural statistician for the
state, finds corn coming along rapidly
in the state, wheat promising a prolific
yield of high quality, and range cattle
in good flesh.
“ Corn in South Dakota,” the report
says, “ has experienced several most
favorable days, and nights since midJuly, and as a result this crop has shown
great improvement. The state has corn
in all stages of development; in south
ern counties considerable of the crop is
tasselled and the silk is appearing, while
in other counties cultivation is in prog
ress and the crop has not yet been “ laid

by.”
“ Wheat,” the report goes on, “ prom
ises a most prolific yield of excellent qual
ity grain the state over. Barley is a very

good crop of the highest quality. Oats,
more especially in the southern counties,
has suffered from a severe infection of
red rust; this crop was well along, how
ever, before infection and the yield and
quality will show only a minor damage
in most counties and quantity only will
be affected.
“ Very much wheat, oats and barley
have been harvested in southern and
James River valley counties. In the
Sioux valley and elsewhere to the north,
harvesting is just beginning with these
crops. Probably 50 per cent of all cereal
crop acreage was cut August 1.
“ Flax is in good condition everywhere
and early-sown fields are now maturing
rapidly a very good crop, while some
fields will not be in bloom for many days.
“ Range, pastures and hay have been
very good, but growth has been slow
limiting carrying capacity. Early cold
temperatures retarded growth, and later
absence of moisture reduced proper de
velopment. Second cutting of tame hay
has hardly begun. Grass on the range is
quite plentiful except in the southwest
counties and is highly nutritious.
‘ ‘ Cattle on the ranges are in good flesh
and grass-fat stock can be expected to
move to market a few days earlier than
usual if marketing conditions are favor
able. Recent marked improvement in
the hog market has given rather notice
able impetus to the shipments of South
Dakota hogs to market.”
Ample farm labor seems to be avail
able almost everywhere in the state; har
vest wages seem to be from $3 to $3.50
per day the state over.
Kingsbury County Bankers Meet
Lars Madsen of the Citizens State
Bank at Arlington, So. Dak., was elected
president of the Kingsbury County Bank
ers Association at a meeting held at
Lake Preston recently.
The retiring
president is 0 . P. Williams, of the De
Smet National Bank.
The election was held at a gathering

THE

NORTHWESTERN

1924

A Distinctive Service for Your
N ew York Business

THE

M echanics & M etals
National Ba n k

BANKER

attended by about thirty bankers repre
senting almost every bank in the county.
There was no business of importance
taken up beyond the election of officers.
The other officers for the coming year
are: A1 C. Johnson of the Farmers Na
tional Bank, Lake Preston, vice president,
and G. M. Dyste, of the same bank, secre
tary-treasurer.
H. M. Best, of the Bancroft State
Bank, is the retiring vice president, and
Wm. Habel, of the First National, of
Arlington, the retiring secretary and
treasurer.
The bankers enjoyed a fried chicken
supper before going into their business
session. A number of ladies were pres
ent with their husbands.
Rapid City Bank Deposits
Based on the estimated population of
7,000 persons, the average bank deposits
for every man, woman and child in Rapid
City, So. Dak., is a little over $200, ac
cording to recent figures compiled by the
Rapid City banks. Approximately 3,100
individuals own the million and a half
dollars in local savings accounts, an av
erage of $451 for each account.
South Dakota Bank Business

OF THE CITY OF NEW Y O R K

Deposits, June 30, 1924, $288,000,000
G. W. McGARRAH
Chairman of the Board

JOHN McHUGH
President

September, 1924

Although July is considered a poor
month by which to gauge the banking
business, due to the fact that the harvest
draws out large sums of money from
banks for the payment of help and the
purchase of harvesting machinery, banks
in all the principal cities of South Da
kota have shown a remarkable increase in
July, according to statistics compiled by
y . V: v.:" :

;

■

v. vv

Something New
A B a n k f o r B a n kers
In
Our
T e r r ito r y

Security National Bank
SIOUX FALLS, S. D.

Capital, Surplus and Profits, $300,000.00
O F F IC E R S :
V\. Z. SHARI*, President
I >ELM A R C. LOWE, Assistant Cashier
D. A. McCl'LLOUGH, Vice President
J. V LOWE, Assistant Cashier
JOHN BARTON, Cashier
OLIVER A BRAY, Assistant Cashier
F. W. KONEM.AN, Manager Farm Loan Dept.
E S T A B L I S H E D 1890

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Federal Reserve Bank of St. Louis

GO LD EN ROD
SA FET Y PAPER
The most distinctive Safety
Paper on the market. Bank
ers using Golden Rod Color
Checks and Stationery have
.been asking for it. Why not
be one of the first banks to
use it? We will gladly mail
you
samples.
k r',
*- 4*. ’*

US.CHECK BOOKCO.

September, 1924

THE

the Associated Press recently from the
towns on its South Dakota circuit.
While Mitchell and Sioux Palls showed
an increase of about 10 per cent, Huron’s
banks have the next largest increase, 6
per cent for the month. Total deposits
on June 30th were $1,796,000, while at
the close of business July 31st they
showed a total of $1,902,253, an increase
of $107,253.
Bank deposits in Mitchell increased
during the month of July more than 10
per cent from approximately $4,000,000
to $4,425,000, while loans decreased
$30,000.
Deposits in Sioux Palls banks increased
by $440,000 during July, according to
figures prepared by officials of the city’s
financial institutions. The proportion of
increase is slightly less than 10 per cent.
Bank deposits in Watertown showed
an increase of approximately 2 per cent
during July. The deposits in Watertown
June 30th were $4,111,002; at the close
of business July 31st they were $4,189,021. Bankers pointed out that the period
is one just before harvest when the de
posits normally fall. The percentage,
they said, also is influenced by the fact
that Watertown had little disruption of
its banking business during the flurry of
last spring.
Despite the fact that July is the one
month of the year in which savings de
posits show least activity and usually
shrink, the banks of Aberdeen have
shown a splendid reaction to the trend
of the times. Savings deposits in the six
banks of the city have recorded a net in
crease of $14,000.
Iowa Bank Statements
The consolidated statement of 855 sav
ings banks, 393 state banks and 21 trust
companies operating under the Iowa state
banking department shows that their
total deposits on June 30th were $605,937,170.84. Their resources were $729,221,107.15 and their total loans and dis
counts were $483,679,081.80.
Undivided
profits increased slightly more than a mil
lion dollars since the last call date, De
cember 31, 1923.
Borrowers paid into the banks during
the first six months of this year $33,076,650.21, while deposits decreased $19,997,098.06.
Robert Leach, state superintendent of
banking, declared the condition of the
banks as of June 30th very satisfactory
and predicted that the next call will
show greatly increased deposits resulting
from sale of farm products.
To most men, experience is like the
stern lights of a ship, which illumine
only the track it has passed.— Coleridge.

NORTHWESTERN

BANKER

utiomlÆèJwmwœ
. ¡pan

S IO U X

FALLS

O ompanij

SOUTH

D A KO TA .

Join Our Banker Agents List
Regardless of conditions, anywhere, Life In
surance is a necessity. South Dakota bankers
tell us that their Life Department is
O FF IC E R S 3
progressing particularly good now.
GuyC.Barton
PRESIDENT
Link up with a South Dakota Com
S.H Witmer
VICE-PRES.
pany.
M&R.A&ENTS
H.Q Chapman

S EC R ET A RY
TREASURER

“A SOUTH DAKOTA COMPANY*

ABERDEEN

we stand ready to serve the
financial and commercial
interests of this territory.

# jll i f
C it iz e n s T r u s t & S a v in g s
Bank

« S i i l i

ABERDEEN, SOUTH DAKOTA

G. N. HERREID, President

D. H. LIGHTNER, Cashier

IO W A STATE T R A V E L IN G
M EN ’S ASSOCIATION
THOSE ELIGIBLE TO MEMBERSHIP ARE:
white male persons over 18 and not more than 55 years of
age, who trayel for business purposes any portion of the
year in addition to their other duties.
This Association Offers:
Accident Insurance at actual cost
— It has never exceeded $9.00 a
year.
many bankers are members of this association,
have not joined, send for an application now.

If you

H. E. REX, S e c 'y a n d T rea s.
Good humor may be said to be one of
the very best articles of dress one can
wear in society.— Thackeray.

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Federal Reserve Bank of St. Louis

Fleming Building

DES MOINES, IOWA

THE

NORTHWESTERN

BANKER

G e n e r a l M otors
A cceptance C orporation
N EW YORK CITY
June 30 , 1924

D i %€CTO%S
P resid en t

ALBERT L. DEANE,

V i c e P r e s id e n t

IRENEE

PONT,

P r e s i d e n t , E . I . du

P o n t de N em o u rs &

C o .; a n d , D i r e c t o r

G e n e r a l M o t o r s C o r p o r a tio n .

LAM M O T du PONT,

V ic e P r e s id e n t, E .

I . du P o n t d e N e m o u r s

Êf C o .;

an d , D i

r e c t o r G e n e r a l M o t o r s C o r p o r a tio n .

PIERRE S.

PONT,

C h a ir m a n , E . I .

du P o n t d e N e m o u r s &

C o .; a n d , G e n

e r a l M o t o r s C o r p o r a tio n .
O.

H. P. LA FARGE,

G en era l M o to rs

T he obligations o f this institution
are regarded as an appropriate and
sound medium for short term in
vestment by a large banking clien
tele. T h ey may be obtained in
convenient denominations and
suitable maturities.

C o r p o r a tio n .

JOHN J. RASKOB,

C h a ir m a n F i n a n c e

■C om m ittee, G e n e r a l M o t o r s C o r p o r a tio n ;
a n d , D i r e c t o r E . I . du P o n t d e N e m o u r s
&

C o.

Address Financial Sales Depart
ment at any office.

JOHN J. SCHUMANN, JR.,
V i c e P r e s id e n t

DONALD M. SPA 1DAL, V i c f P r e s i d e n t
ALFRED H. SWAYNE,

V i c e P r e s id e n t

a n d D ir e c to r , G e n e r a l M o to r s C orp ora
E

tio n .

224

O ffic e r s
ALFRED H. SWAYNE,
CURTIS C. COOPER,

x e c u t i v e

f f ic e s

W est 5 7 T H Street, N ew Y ork. City

V ic e P resid en t
‘B p A . ' S C C H E S
V ic e P resid en t

NEW YORK

DONALDM.SPAIDAL,

V ic e P resid en t

A TLAN TA

DAYTON

JAMES H. McMAHON,

V ic e P resid en t

BOSTON

DENVER

PHILADELPHIA

BUFFALO

DETROIT

PITTSBURGH

CHICAGO

KANSAS CITY

PORTLAND, ORE.

CINCINNATI

LOS ANGELES

ST. LOUIS

CLEVELAND

MINNEAPOLIS

SAN FRANCISCO

REUNE M ARTIN ,

T reasu rer

GEO. H. BARTHOLOMEW,
S e c r e ta r y

Liv i n g s t o n l . s h o r t , Counsel
F. STANLEY PARSON,

A u d ito r

DALLAS

WASHINGTON, D.C.

LONDON, ENG.

TORONTO, CANADA

JOSEPH L. MYERS
G e n e r a l M a n a g e r , F in a n c ia l
S a le s D e p a r t m e n t .

OMAHAPRINTINGCO
P R IN T E R S -L IT H O G R A P H E R S
O F F IC E
Fu r n i t u r e

O F FIC E
SUPPLIES

DESKS
T A B LES

LOOSE

CHAIRS

LEAF
DEVICES

FILING
DEVICES
■ STEEL J W O O D

FARNAM
AT 1 3 ™

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Federal Reserve Bank of St. Louis

(Continued from page 72)
through this moral effect, local conditions
and confidence have been partially re
stored and apjDarently there is a small
wave of optimism evident.
1. There is no grain left over of any
kind from last year’s crop. Even oats
and barley have been fed out some six
weeks ago. Most of the harvesting was
done by horses Avith hardly any grain
feed.
2. We have marketed some cattle.
However, the prices of cattle have not
advanced commensurate to other com“modities. Our grain will not be ready
to market for at least thirty days; most
of the rye, oats, and barley have been
harvested and Ave are in the height of
Avheat harvest noAv.
3. As our grain will not be marketed
for another thirty days, the increased
prices, of course, have not been realized
on. In fact, our bills receivable have
been advancing, due to the fact that it
is absolutely necessary for us to assist
our farmer customers in the purchase of
twine and paying for transient labor.
4. Farmers are feeling better and more
hopeful and are trusting that the increase
of prices will continue, or hold at the
jAresent basis, until such time as they
can market their grain.

C h a ir m a n
P r e s id e n t

JOHN J. SCHUMANN, JR.,
ALBERT L. DEANE,

HOW BANKERS VIE W INCREASE IN
PRICE OF FARM PRODUCTS

H. E. Wildfang, Sterling:

C a p i ta l ........................................* •$ 9,000,000
Surplus & U n divid ed P r o fits . . . . 4 ,029,455
T ota l R e s o u r c e s ..........................$98, 155,684

CURTIS C. COOPER,

September, 1924

PHONE

O M A. H A.

DOUGLAS 2793

J. T. McClintock, Rugby:
1. There is practically no grain left
in this territory from last year.
2. There has been practically no grain
marketed, and very little live stock at
the increased prices, as there was prac
tically no carry-over from seeding.
3. There have been no reductions in
the amounts owing us by our customers,
due to the increased prices. They have
mostly increased.
4. We can see little effect in our com
munity from the increase in jrrices, ex
cept that it has helped the morale.
It is expected that the increase in
prices, if it holds, will greatly benefit
this community when the crop is mar
keted, but until then there can be no bene
fits.
MINNESOTA
J. A. Allen, Milaca:
In reply to your letter of August 14th,
answering your various questions, will
say as to No. 1 that there is no grain
left in our community from last year.
No. 2, there has been practically no grain
or live stock marketed since the higher
prices here. AnsAvering No. 3, will say
that our farmers have not had any bene
fit from the increased prices to speak of,
as there has been so little marketed that
it has not amounted to anything. This
(Continued on page 78)

September, 1924

THE

NORTHWESTERN

N E B R A S K A

BANKER

B A N K

N EW S

O FFICERS OF T H E N E B R A SK A B A N K E R S ASSOCIATION
P r e s id e n t .. . .C. A. M inick, V ice P resident F ir st N ational Bank, C raw ford
Chairm an E xecu tiv e C o u n c il...C . A. Smith, V ice Pres. Tilden Natl. Bank
T r e a s u re r. . . .H . C. N icholson, V ice Pres. P ackers N ational Bank, Omaha
S e cre ta ry ............................W m . B. H ughes, 908 W ood m en Building,’ Omaha
G eneral C ou nsel. .E d w a rd M. M artin, Brandeis T h ea ter B u ildin g, Omaha
E X E C U T IV E

C O U N C IL

H. G. W e lle n s ie k ................................................... P resid en t H arvard State Bank
Carl W e il..................... V ice P resid en t N ational Bank o f Com m erce, L in coln
H. C. N ich o ls o n .................... V ice P resid en t P a ck ers N ational Bank, Omaha
F red K u en n eth .................... V ice P resident F irst N ational Bank, H astings
S. J. W e e k e s ......................................................... P resid en t O’N eill N ational Bank
M ark S p a n o g le ..................................................................C ashier B rid g ep ort Bank
Dan V. S teph en s................................................... P resident F rem on t State Bank
G eorge W . W o o d s ....................................Cashier L in coln State N ational Bank
J. H. D o n n e lly ......................................................... Cashier State Bank o f Omaha
J. B. G ib s o n .........................................President N ebraska State Bank, N orfolk
W a lter M. R o d m a n ....................... P resident A m erican State Bank, K im ball
P. L. H all, J r......................................Cashier F irst N ational Bank, G reen w ood
C. A. S m ith .................................................V ice P resid en t Tilden N ational Bank
I. R. A lt e r ...................................... Cashier F irst N ational Bank, G rand Island
W . P. R o o n e y ...........................................Cashier Chadron State Bank, Chadron
F. W . T h o m a s ..............................V ice P resid ent F irst N ational Bank, Omaha

Becomes Vice President

In New Building

C.
E. Butler has been promoted from The Farmers Bank of Chester, Neb.,
cashier to vice president of the Nebraska
recently opened up for business in their
new bank home which is in the center of
State Bank of Weeping Water, Nebraska.
the main business block on the west side
Other promotions were : F. J. Domingo
from assistant cashier to cashier, and of Main street.
Miss Lucile Johnson to assistant cashier.
This room is seventy feet deep, divided
This institution is capitalized at $25,into different apartment for their busi
000.00 and $10,000.00 surplus.
ness convenience. The fixtures are of
Italian marble, decorated in mahogany
and divided up into apartments. The
Woman Heads Bank
Mrs. P. J. Kerrigan, of Greeley, Ne president’s corner is in the north front
window, and just back of it is the teller’s,
braska, has been elected president of
cashier’s, assistant cashier’s and the
the Brayton State Bank, Brayton, Ne
bookkeeper’s
windows. In the rear is a
braska, to fill the position left vacant
modernly equipped rest room with private
by the death of her husband. Joe Ker
toilet, private consultation room, and the
rigan, cashier, has been elected to the
big vault.
board of directors.
The vault is in two departments di
vided by a signal swinging gate. It is
Is Elected Cashier
well supplied with safety deposit boxes
William P. Banning, for a number of
and pigeonholes.
In its construction
years a director of the Bank of Union,
there are 125 tons of sand and cement
Nebraska, has been elected cashier of
and it swings a door weighing 6,500
that institution to fill the vacancy caused pounds.
by the death of the late Jack Patterson.
All of their equipment for carrying on
Other officers of the bank include : Pres
the business is thoroughly modern and
ident, L. C. Todd; vice president, W . C.
this with their new quarters makes a very
James. This institution is capitalized
efficient banking institution.
at $15,000.00 and has a surplus of $11,000.00.
Becomes Assistant Cashier
Is Elected Cashier
R. E. Pritsche has been elected as
sistant cashier of the Farmers State
Bank of Indianola, Nebraska, succeeding
Joe Harrison who resigned recently to
go to Oklahoma.
First National, Randolph
The usual dividend was declared by the
First National Bank of Randolph, Ne
braska, at its regular semi-annual meet
ing held recently. President James F.
Toy, of Sioux City, Iowa, was present at
the meeting and treated stockholders and
bank employes to a chicken dinner fol
lowing the meeting. No changes were
made in the bank’s official staff.

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Federal Reserve Bank of St. Louis

Jos. A. Kucera, of Howells, Nebraska,
has taken a position as assistant cashier
of the Clarkson State Bank at Clarkson,
Nebraska. He assumed his new duties
the first of August. Prior to this date
he held a similar position with the
Howells State Bank for two years and
the Bank of Morse Bluff for five years.
He was educated at the University of
Dubuque and came to Nebraska seven
years ago.
Milford Banker Dead
William Eigsti, assistant cashier of the
Farmers and Merchants Bank of Milford,
Neb., was married recently to Miss Flor
ence Jarrett of the same city. The bride
was formerly employed in the Nebraska

State Bank of Milford.
their home in Milford.

They will make

State Bank of Poole
Lyman Cary, W . M. Ross and C. E.
Clark have purchased the controlling in
terest in the State Bank of Poole, Neb.
Mr. Clark is cashier of this institution,
and will henceforth occupy the position
of president. Edna A. Clark will suc
ceed him as cashier. This institution has
capital and surplus of $24,000.
Mr.
Cary is one of the pioneers of the
community, has very extensive farming
interests in Buffalo county and served
eight years as county treasurer. Mr. Ross
was raised in Buffalo county, and has had
several years’ experience in the banking
business.
Miller Banker Dead
F. D. Brown, president of the First
State Bank of Miller, Nebraska, died
August 15, 1924.
He was born in Wisconsin, September
9, 1862, spent his boyhood days in
Pulaski, New York, and at the age of 21
moved to Nebraska. In June, 1887, he
established the First Bank of Miller, of
which institution he was president at
his death, having been active manager
of the bank for the past 37 consecutive
years, which gave him the record of hav
ing been manager of the oldest bank in
this county, and probably in many coun
ties in this state, under the same managment for that length of time. His
death was caused by arteriosclerosis
and after a month’s serious illness.
Buys New Building
The Fordyce State Bank of Fordyce,
Nebraska, has purchased a brick build
ing across the street from the present
banking quarters and will remodel the
building for use as a new banking home.
The second floor of the building will be
devoted to office rooms.

THE

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

BA NK ER

IT IS OUR AIM
to render such prompt and painstaking service in handling
business entrusted to us by our country bank correspondents,
that we will be regarded as their “ Omaha Branch Office.”
W e in v ite n e w b u sin ess o n o u r reco rd .

Packers Natio

Sank

September, 1924

Resigns at Phillips
E. C. Huxtable, cashier of the State
Bank of Phillips, Neb., has resigned from
that position to become vice president of
the State Bank of Grand Island. He has
sold a part of his interest in the bank at
Phillips to Howard Johnson of Trumbull,
who becomes cashier succeeding Mr. Hux
table. Mr. Huxtable will continue as a
director of the Bank of Phillips and was
elected to the vice presidency.
Moves Into New Quarters
The Farmers State Bank of Nickerson,
Neb., has moved into new and enlarged
quarters on the north side of Main street.
The bank was formerly housed in the W .
0 . W . building.

HARTFORD RUILDING

Is Elected Vice President
At the semi-annual meeting of direc
tors of the Plateau State Bank of Her
man, Nebraska, Earl C. Burdie was pro
moted from cashier to vice president and
Geo. W . Stangel was raised from assist
ant cashier to cashier. These elections
took place to fill the vice presidency left
vacant two years ago by the death of
Geo. C. Latta. Eugene W. Burdie is pres
ident of the bank.

1 5 -Y E A R 6</2% F IR S T M O R T G A G E
L E A S E H O L D S IN K IN G F U N D GOLD B O N D S

HOW BANKERS V IE W INCREASE IN
FARM PRICES

UNION ST O C K Y A R D S
O M A H A

$ 1 ,2 5 0 ,0 0 0
(Madison and Dearborn Streets, Chicago)

The H a rtfo rd B u ild in g is loca ted at the best “ 24-h our co r n e r’ ’ in C hicago, righ t in
the heart o f the L oop . It is unusually w ell con stru cted and has been w ell m aintained.
These bon d s are secured b y a closed first m ortgage on the b u ild in g and the leasehold
estates in the land upon w h ich it stands. A s appraised b y independent experts, the
present value o f the secu rity is p ra ctica lly tw ice the am ount o f these bonds.

PRICE:

100 and Accrued Interest, to Net 6 ^ %

W e recom m end these bonds fo r investm ent, and upon request
shall be pleased to send you a circu lar fu lly d e scrib in g the issue.

dc o m p a n y

ESTABLISHED 1912

71 W . Monroe St.
N E W YORK

CH ICAGO

M IL W A U K E E

Phone State 6440

MINNEAPOLIS

BOSTON

Here’s Your Bank, Where Are You?
Selecting a bank takes just as much judgment
as choosing anything else. The thing to do
is to know what to ask for and where to get it.
If you are out for the best, you are out for
the Stock Yards National Bank. Its service
never fails.
You will find it located in the heart of the
Union Stock Yards, Omaha. Once found, you
will soon know that this was your bank long
ago, if you had but known it.

STOCK YARDS NATIONAL BANK of South Omaha
OFFICERS
Ford E. Hovey, President
F. J. Enerson, Vice President H. C. Miller, Assistant Cashier
Jas. B. Owen, Vice President W . L. Pier, Vice President
C. L. Owen, Assistant Cashier
J. S. King, Vice President
W . H. Dressier, Cashier
T. G. Boggs, Auditor

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

is a dairy country and there is not a
great amount of products sold from the
farm, with the exception of potatoes and,
of course, they have not been dug as yet.
William H. Bollenbach, Lamberton:

Ask for Circular 12-2164

A .C .A L L Y N ^

(Continued from page 76)

First, we have very little grain left
from last year and what little there is
must be held to await the outcome of
this year’s corn crop. We had a nice
supply of corn, but most of this was
marketed during May and April.
Secondly, we have benefited to a cer
tain extent by the increase of live stock
prices, but this is the poorest time of
the year, as most everything has been
pastured through the summer until feed
could be secured from this year’s crop.
Most of our hogs are young and will
need a few more months to prepare for
market.
Thirdly, we have not derived any bene
fit in increase of prices up to date as
far as liquidation is concerned. If the
prices hold up for another month we will
be able to collect in a good deal on some
of our slow paper, as the crops here are
very good and at present prices will mean
a nice profit to everybody.
Finally, I might say that the best thing
which has taken place in connection with
the increase in prices is the better feeling
among farmers. It makes them more
willing to dig in and work and also makes
them feel more like paying their debts.
During the past two years farmers as a
whole have degenerated more than any

September, 1924

THE

NORTHWB STEEN

BANKER

Is there a bank at
Bydgoszcz-Gdansk,
Poland?
facts. Bulletined daily
to representatives in all
leading cities.
A t your service

The Chase National Bank

—here is the answer
ONE of your valued clients is
going to B ydgoszcz-G dansk, P o
land, on some business errand.
W hile there he wants to have
extended to him the European
equivalents o f the bank courtesies
he receives in this country. Can
you advise him and be of service
to him ?

of the City of New York
57 Broadway
C A P IT A L

................................................................................... $ 20,000,000
24,605,034
487,418,771

SURPLUS AND P R O F I T S .................................................
D E P O S IT S (J u n e 30, 1 9 2 4 ) ..............................................
O F F IC E R S

A L B E R T H. W IG G IN
P resid ent
V ic e P re sid e n ts

SAM UEL H. M IL L E R
H E N R Y O LLESH EIM ER
C A R L J. SCH M ID LAPP
A L F R E D C. A N D R E W S
R E E V E SCH LEY
R O B E R T I. B A R R
S H E R R IL L SMITH
A s s is t a n t V ic e P r e sid e n ts

E D W IN A. L E E
W IL L IA M E. P U R D Y
G EO RG E H. SA Y LO R
JAM ES L.
C om p troller
THOMAS R IT C H IE

M. H A D D E N H O W E LL
A L F R E D W . HUDSON
GEO RG E H A D D E N
M IL L E R
Cashier
W IL L IA M P. HOLLY

D IR E C T O R S

H E N R Y W . CANNON
EUGENE V. R. T H A Y E R
A L B E R T H. W IG G IN
C A R L J. SCH M ID LAPP
JOHN J. M IT C H E L L
G E R H A R D M. D AH L
GUY E .T R IP P
ANDREW FLETCH ER
JAM ES N. H IL L
R E E V E SCH LEY
D A N IE L C. JACK LIN G
H. W E N D E L L ENDICOTT
C H A R LE S M. SCH W AB
W IL L IA M M. WOOD
SAM UEL H. M IL L E R
JE R E M IA H M IDBANK
E D W A R D R. T IN K E R
H E N R Y O LLESH EIM ER
E D W A R D T. NICHOLS
A R T H U R G. HOFFM AN
NEW COMB CARLTO N
F. EDSON W H IT E
F R E D E R IC K H. E C K E R
A L F R E D P. SLOAN, Jr.
ELISH A W A L K E R
WE INVITE ACCOUNTS OF BANKS, Bankers, Corporations, Firm3
or Individuals on favorable terms, and shall be pleased to meet or cor
respond with those who contemplate making changes or opening new
accounts.
Through its Trust Department, the Bank offers facilities as: Trustee
under Corporate Mortgages and Indentures of Trust: Depositary under
reorganization and other agreements: Custodian of securities and Fiscal
Agent for Corporations and Individuals: Executor under Wills and Trustee
under Testamentary Trusts; Trustee under Life Trusts.

FOREIGN DEPARTMENT

Rand McNally
B an k ers D i
rectory— Blue
Book
The Bankers
Monthly
Key to the N u
m erica l S y s
tem o f th e
A . B. A .
Bankers Equip
ment - Service
Guide
Bankers Equip
ment Bulletin
Banking and
Business
Ethics
Maps for
Bankers

T h is is but one o f the vast
v a rie ty o f qu estion s that the
R A N D M c N a l l y Bankers D irec
tory will answer for you.
W ith the R a n d M c N a l l y
Bank Publications at his disposal
a banker can obtain instantly and
accurately inform ation and fa c t s
on the most perplexing subjects.
O v er fifty-two years of constant
effort devoted to the service of
banking needs has enabled us to
provide the most accurate, care
fully edited and up-to-date bank
publications in the w orld.

R atto MSN m

jl y

a Co m pan y

Dept. J-29, 536 S. Clark Street, Chicago
L a r g e s t P u b l i s h e r s of B a n k i n g P u b l i c a t i o n s in the W o r l d .

E s t a b l i s h e d 1856.

Official Numbering Agent, American Bankers Association

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Federal Reserve Bank of St. Louis

THE

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

BANK ER

September, 1924

other class of people, because everything
seemed to be going against them and
they were pushed from all sides, so much
so that they felt it was perfectly legiti
mate to get out of paying their indebted
ness, by hook or crook. Now that they
see some prospect for money and a re
turn for their efforts, they are more
willing to look their indebtedness
squarely in the face, and probably reduce
in good shape this fall.
NEBRASKA
Geo. Parker, Newcastle:

We offer our facilities to out-oftown banks and bankers desiring a
complete Chicago correspondent
service in domestic and foreign
banking. An opportunity to ex
plain the benefits of both our serv
ice and a strong banking connec
tion is desired.

Central Tru st
COMPANY OF ILLINOIS
C H IC A G O

BANK SUPPLIES
Our supply catalog will be sent to you
upon request. Hundreds of standard
articles are carried in stock for imme^
diate shipment. Try our service.

Hammond Printing Company
Frem o n t, N eb rask a
F. G. PLUM M ER , Iowa Representative
Franklin Hotel
Des M oines, Iowa

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Federal Reserve Bank of St. Louis

The increase in prices of farm prod
ucts has had the effect of putting a cheer
ful look on the farmers’ faces, and we
can see an improvement in conditions
here.
There is practically no old grain left
in this locality; most of our corn is fed
to stock, very little shipped.
There was some stock left in the feed
lots when the raise came, but most of it
had gone to market; however, a number
have materially benefited.
I can only cite one instance where a
farmer-customer cleaned up all his notes
with us.
There are several who have reduced
their line of paper quite a lot.
Our prospects for this year’s crops are
good; we only need about four weeks
to mature the corn crop.
Moritz Aabel, Norman:
There is very little grain left in our
territory from last year. There is some
corn but very little wheat.
There has been quite a movement of
wheat and corn out of here in the last
thirty days. We have more money in our
bank than we have had for several years.
The increase in prices has enabled
some of our customers to reduce their
indebtedness to us. Most of the new
wheat crop has been put in the bin or
stacked. We believe that when this crop
is sold that most of our customers will
be able to pay their debts.
The love of gain never made a painter,
but it has marred many.— Allston.

M idland
National
B a n k
Minneapolis

September, i9 24

THE

NORTHWESTERN

BANKER

* M IN N E S O T A
M BANK NEW S

,
*

O FF IC E R S MINNESOTA B A N K E R S ASSOCIATION

R. W . LINDBKE
P resident

P resid en t. .R . W . Lindeke, V ice P resid en t M erchants Natl. Bank, St. Paul
V ice P r e s id e n t .. . J. J. M aloney, Cashier F arm ers State Bank, H eron Lake
T re a s u re r............................................................................ J. K. M arton, L ittle F alls
S ecreta ry ...................................................................... G. H. R ichards, M inneapolis

Credit Corporation Makes Report
A recent bulletin has been released by
the Agricultural Credit Corporation,
with headquarters in Minneapolis, sum
marizing the work thus accomplished in
aiding the agricultural northwest.
A part of the bulletin reads as follows :
“ Temporary offices were opened Feb
ruary 26th. An officer was selected and
placed in charge of each of the four
states, and applications were received
and considered before the formal papers
necessary to the organization and opera
tion of the corporation could be pre
pared. The first loan was completed and
made on March 20th. The corporation
has therefore, at this time, been in ac
tive operation just under four months.
Up to the middle of July loans and in
vestments totalling over four million dol
lars have been made, affecting more than
two hundred banks, as follows :
Minnesota, 12 banks.............. $
404,000
North Dakota, 98 banks..........
1,242,000
South Dakota, 61 banks..........
1,547,000
Montana, 25 banks...................
886,000
Special outside cases, 9 banks.
178,000
“ The deposits in the banks aided show
as follows :
Minnesota................................. $ 7,262,000
North Dakota........................... 14,610,000
South Dakota........................... 17,404,000
Montana ...................................
5,636,000
“ a total of approximately forty-five mil
lion dollars. The safeguarding of these
deposits has unquestionably been of di
rect benefit to many thousands of indi
viduals, a very large percentage of whom
are engaged in agriculture, live stock
raising, dairying, and businesses depend
ent thereon. In a great many eases the
loans made by this corporation have been
the means of saving the investment in
the financial institutions of the very
people who can be counted upon to do
the most in bringing back values and
promoting the profitable conduct of busi
ness in their respective communities.
‘ 1While there have been some most un
reasonable and unfair requests and de
mands upon the corporation, it is grati
fying to be able to report that in the
main those who have applied to the

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Federal Reserve Bank of St. Louis

G. H. RICHARDS
Secretary

corporation for assistance have done so
on a proper business basis and there
have been numerous instances of the
most generous and loyal support of the
local institution by the stockholders,
which proved that confidence of the de
positors in those responsible for the
bank was well merited.”

Capital stock was given as $5,588,935,
compared with $4,643,340 last year.
“ This is the largest land bank in the
world,” said Mr. Quamme. “ In a year
its resources have grown from $99,982,761 to $121,660,313. The growth of this
bank is unparalleled in the history of
land banks.

Goes to Eveleth
H. C. Doerr, Jr., who has been cashier
of the First National Bank at Aurora,
Minnesota, since its organization in 1919,
has accepted a similar position with the
Peoples State Bank of Eveleth. He re
tains his interests in the Aurora bank.
He was cashier of the First National
Bank of Two Harbors, for several years.

Will Meet in St. Paul
St. Paul has been chosen as the next
meeting place for the annual convention
of the National Association of State
Bank Supervisors. The 1924 convention
Avas held in Buffalo, New York. The
1925 convention will be held in July.
This association is made up of the vari
ous state banking officials and officials of
Federal Reserve banks.

Changes to National Bank
The Hibbing, Minnesota, State Bank
has been converted to a national insti
tution. The new institution, which will
be known as the Hibbing National Bank,
has a capital of $100,000 and deposits
totaling approximately $430,000. John
Butler is president and D. B. Fuller
cashier.
Buys Two Banks
The Marquette Company, of Minne
apolis, has purchased controlling inter
ests in the First National Bank of Thief
River Falls, and the Merchants State
Bank of St. Hilaire, according to an an
nouncement by President J. W . Black.
The Thief River Falls Bank is capital
ized at $50,000, has a $35,000 surplus and
deposits of $780,000. The St. Hilaire
bank has $10,000 capital, surplus and
profits of $9,600 and deposits of $240,000. C. L. Hansen, who has been presi
dent of both banks for years, is retiring
and is succeeded by Mr. Black as pres
ident.
Land Bank Growing
The capital stock of the Federal Land
Bank of St. Paul has increased more than
$1,000,000 in the past fiscal year.
The annual statement of the bank was
made public recently by E. G. Quamme,
president.

Minneapolis Bank Clearings
Clearings of banks of the city, mem
bers of the Minneapolis Clearing House
Association, for the month of July, 1924,
totalled $313,248,312. This sum, repre
senting exchange of checks and drafts
among Minneapolis banks, was an in
crease of $24,475,693, or more than 8 per
cent, as compared with the July, 1923,
total of $288,772,619.
Will Discuss Rate Situation
The reduction of rediscount rates au
thorized for all Federal Intermediate
Credit banks by the Federal Farm Loan
Board at Washington will be taken up
by the board of directors of the Inter
mediate Credit Bank of St. Paul, at a
meeting Avithin the next few weeks, it
was announced recently by Jacob A.
Rickert, manager.
The Federal Board recently approved
new rates of 5 per cent to financial in
stitutions and 4 % per cent to co-opera
tive marketing associations. Rates at
most Intermediate Credit banks of the
country have been 6 and 5y 2 per cent on
the two classes of paper. The rate cut
was explained in an official statement
issued by the board as following the
easier money market ruling throughout
the United States. Interest rates, which
the board recently has had to pay in
debentures of the Intermediate Credit

THE

system, make possible a reduction in
rates charged to the borrowers, it was
pointed out.
In St. Paul, however, Mr. Rickert said,
rates of 5y 2 per cent for banks and 5
for co-operative organizations have been
in effect for some time, the latter having
been established a month ago. Prior to
July 15, rates on both bank and co-opera
tive rediscounts were
per cent.
The St. Paul institution has been sell
ing its debentures at 44/2 per cent, Mr.
Rickert explained. In order to reduce
its rates and extend cheaper credit to
borrowing banks and co-operative as
sociations, the St. Paul bank first must

NORTHWESTERN

find a market for its debentures at rates
below
Per cent, he pointed out.

4^/2

“ We cannot borrow our funds at 44/2
per cent and lend them to groups of
Northwest farmers at the same rate,”
said Mr. Rickert. ‘ ‘ There would be noth
ing to pay operating expenses of the bank.
Even the 5 per cent rate for bank re
discounts would leave this institution an
inadequate margin, while borrowing
funds at 44/2. Action by the board of di
rectors first must take up this phase of
the problem. The meeting undoubtedly
will be called as soon as possible, but no
date has been set. Meanwhile, the rates

Sell and Grow
Progressive Business is a train of departments
pulled by a twentieth century selling engine.
Production, generally, is limited only by the
capacity to sell. T o s e l l i s t o g r o w — in size, in
profits, in power to serve.
Growth is the evidence of the healthy turnover
of working assets. It is accompanied by de
crease in unit costs— selling and production.
Larger profits can be taken, or selling prices
reduced, to increase sales.

September, 1924

BANKER

will have to stand at their present figures
of 54/2 and 5 per cent.”
A reduction of x/2 per cent in the rates
charged by the Intermediate Credit Bank
of St. Paul would mean a saving of $19,000 to the Northwest farmers who dis
count their paper with the institution,
either through their local banks or
through co-operative associations. It was
pointed out, however, that loans are at
their low level of the year during the
weeks just preceding the grain harvests
and borrowings from the bank may be
expected to advance considerably when
the crops really start to market.
Is Elected Cashier
George Graff has been elected cashier
of the First National Bank of Ivanhoe,
Minnesota, to succeed W . W . Panneck,
who was former cashier. Mr. Graff has
had several years banking experience
and was most recently connected with
the First National Bank of Ivanhoe.
Must File Additional Bonds
■Henry Rines, Minnesota state treas
urer, called upon banks of the state re
cently to file additional bonds which
■would permit them to accept additional
deposits aggregating approximately $4,000,000. This action was taken because
the state has more money in the state
treasury than the various state deposi
tories can accept without making addi
tional qualifications.

As fundamental to Growth, modern manage
ment applies scientific Market Analysis and
sound methods of Cost Accounting. One gives
the sales department absolute knowledge in
place of impressions ; points the way to efficient
selling plans and successful selling action. The
other furnishes the management facts and
figures from every department— the timely,
dependable guides to safe and steady progress.

«"GRADE
a

It has been the pleasure of the Ernst & Ernst
organization to cooperate with firms, nation
wide, in establishing the simplest and most
economical methods of M arket Analysis—
eliminating waste fields in selling; and sound
methods o f Cost Accounting— furnishing the
power to control inventories.

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Federal Reserve Bank of St. Louis

LO S A N G ELES
1924

O . B. M C C L I N T O C K

September, 1924

THE

NORTHWESTERN

BANKER

Is N ew Cashier

J. E. Farrell, newly elected cashier of
the First National Bank of Waseca,
Minn., began his banking career with
the present institution on “ Friday,”
February 10, 1910, as stenographer and
assistant bookkeeper and messenger. On
December 18, 1915, he was elected teller
and January 11, 1916, he was elected as
sistant cashier. Recently, at the regu
lar meeting of the board of directors
he was elected cashier to succeed H. C.
Didra, who resigned February 15, 1924.
The Waseca Herald of July 24th
makes the following comment : “ At a
meeting of the board of directors of the
First National Bank, held last Friday,
J. E. Farrell was elected cashier to suc
ceed Henry Didra, who resigned some
time ago. Mr. Farrell is now in his fif
teenth year of employment at the First
National. He began at the foot of the
ladder and his promotion has been due
to ability, courtesy and honesty. He is
popular with all the bank’s patrons.”

The Official Family
Much o f a b a n k ’ s success and rep u tation depends on the ch aracter and
a b ility o f its officers and directors. The officers in ch a rge o f this b a n k ’s affairs
are: A lb ert L. Ordean, P resid en t; D avid W illiam s, J. H. In gw ersen, J. H. D igh t
and W . J. Johnson, V ice P resid en ts; W. W . W ells, Cashier; W. A. Putm an and
H. E. G rieser, A ssistan t Cashiers; Geo. W . Ronald, M anager Bond D epartm ent;
H. U. M oore, S ecreta ry and A ssista n t T rust Officer.

THE FIRST NATIONAL BANK
DULUTH,

CAPITAL $2,000,000.00.

MINN.

SURPLUS AND PROFITS $2,200,000.00

Northw estern Banker Advertising Pays

National Dairy Show
The National Dairy Association will
send to the banks of Minnesota posters
announcing the annual dairy show at
Milwaukee, Wis., September 27th to Oc
tober 4th.
This ought to be of much interest to
dairy farmers and it is assumed that
bankers will be glad to hang the poster
in a conspicuous place in their banks.
The National Dairy Association has
made these annual exhibits of tremen
dous value to the dairy industry, as they
have a great educational value.
Duty is what goes most against the
grain, because in doing that we do only
what we are strictly obliged to, and are
seldom much praised for it.— La Bruyere.

ST. PAUL

MINN.

GIRARD’S FORESIGHT
N Stephen Girard’s day, a man
was beaten in Philadelphia and
called a swindler fo r selling an
thracite coal.

Although coal as fuel was not well
known in our country in his time,
still Girard saw a great future for
it and bought a large tract o f land
in the Schuylkill anthracite hills of
Pennsylvania.
T oday coal form s one o f the most
valuable products o f Pennsylvania
and Girard’s mines rank among the
richest.

. Robert ot Seventh
Bank for

The same ability to ju dge and act
with decision governs the policies
o f the Girard National Bank today.

T he G ir a r d N a t io n a l B a n k
PHILADELPHIA

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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

A.B.A. CHICAGO
S e p t. 2 9 —O c t . 2 , 1924

BANKER

September, 1924

First National News Items
The following items of news are sent
in by 0. W . Hillberg, advertising man
ager of the First National Bank, Minne
apolis :
“ A . J. Bjerken, assistant cashier in
the Country Bank Department of the
main office, and A. S. Newcomb, assist
ant cashier in charge of the BloomingtonLake Office of the First National Bank,
returned recently from a three weeks
vacation spent at Ely, Minn.
“ Lyle W . Scholes, assistant cashier of
the First National Bank, who is also in
the Country Bank Department, has been
on a three weeks trip in South Dakota
and northern Minnesota.
“ P. J. Leeman, vice president, in
charge of the Country Bank Department,
and C. T. Jaifray, former president of
the First National Bank and now presi
dent of the Soo Railroad, are on an ex
tended crop inspection tour of the north
west over the Soo Line Railroad.
“ Modesty forbids W. A. Yolkman, as
sistant cashier of the First National
Bank, from telling us where he spent
his vacation. He says vacations are hard
on him but he likes them just the same.”
Becomes Vice President
Paul J. Wedge, who recently resigned
as cashier of the First National Bank
at Miles City, has been elected a direc
tor and vice president of the First Na
tional Bank at Thief River Falls, Min
nesota. Mr. Wedge is a graduate of
Carlton College, and studied one year
at Harvard. While a banker in Mon
tana, at Miles City, he was a Group
president and a member of the state as
sociation executive committee.
New Cashier at Oakland

WELCOME!

‘77>i’CONTIN ENTAL W
COMMERCIAL
B A N K S
CHICAGO

Lester 0 . Westrum has assumed the
duties of his new position as cashier of
the State Bank of Oakland, Minn., suc
ceeding A. A. Sorenson, who was last
month appointed state bank examiner.
Mr. Westrum has been in the banking
business for the past ten years with the
Merchants State Bank of Werner, N. D.
Sails for Europe
Frank K. Houston, vice president of
the Chemical National Bank of New
York, sailed for Europe recently on a
business and pleasure trip. He is ex
pected to return the early part of Sep
tember.
The greatest truths are the simplest;
and so are the greatest men.— Hare.

Mailing Lists

Will help you increase sales

Resources M o re Than $ 5 0 0 ,0 0 0 ,0 0 0
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Federal Reserve Bank of St. Louis

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eac.~l

THE

September, 1924

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

BA N K E R

NORTH DAKOTA
BANK NEWS
O F F I C E R S N O R T H D A K O T A B A N K E R S A S S O C IA T IO N

BLANDING FISHER
P resid ent

'P residen t, Blanding- Fisher, Pres. R am sey County Natl. Bank, D evils Lake
V ice P resid en t and Chairm an E xecu tive C o u n cil........................................
..........................Ed P ierce, P resid en t R ansom C ounty T ru st Co., Sheldon
T re a s u re r..................... J. E. D avis, P resident Citizens State Bank, G oodrich
S e cre ta rv .............................................................................. W . C. M acfadden, F a rg o

Milnor National Reopened
Reopening of the Milnor National
Bank of Milnor, North Dakota, has been
reported by the Agricultural Credits Cor
poration. This institution was closed
a year ago. Officers of the bank are the
same as before, including : President,
A. E. Austin; cashier, Reginald Thorne;
vice presidents, A. H. Botten and Anton
Berger. The reopened bank is capital
ized at $30,000.
Merger at Fargo
The Securities National Bank of Fargo,
North Dakota, has taken over the busi
ness of the Northern National Bank of
that city. The Northern Trust Company
will be affiliated with this bank. Under
the consolidation, officers of the Secur
ities National will be as follows: James
Grady, president; H. C. Aamoth and B.
J. Keating, vice presidents; F. P. Aamoth,
cashier; W . H. Clemens and F. N. Fairchild, assistant cashiers.
Bank Reopens
The Farmers State Bank of Page,
North Dakota, has been reopened for
business with capital stock of $25,000 and
deposits of $88,000. Officers of the bank
are : President, Matt Murphy; vice pres
ident, J. J. Murphy; cashier, G. E. Doyle;
assistant cashier, Miss Lydia L. Johnson.
Gets State Appointment
A. L. Netcher, banker of Fessenden,
North Dakota, has been named by Gov
ernor Nestos as a member of the Guar
anty Fund Commission, succeeding M. A.
Porter. He will serve a three-year term.
North Dakota News Items
J. R. Carley, vice president of the
First National Bank of Grand Forks,
North Dakota, sends in the following
items of news:
E. R. Becwar has been elected as
sistant cashier of the First International
Bank of Minot, succeeding O. M. Thomp
son, resigned.

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Federal Reserve Bank of St. Louis

The secretary of state’s office has also
issued charters to the following banks:
The State Bank of Langdon. Author
ized capital stock is $25,000.00 and the
directors are Thos. Ullyott, Arthur Gam
ble, J. D. Roach, Wm. Marsh and J. C.
With the exception of corn, which Mirehouse.
is more backward than usual, prospects
The First State Bank, Center. Au
for a good crop are splendid all over the thorized capital stock is $15,000.00 and
state of North Dakota.
directors are M. Jennings, J. F. Mc
Nulty, E. F. Mutchler, Herman L. BarS.
K. Breidfjord succeeds A. E. Lordchenger and E. C. Hagerott.
as director and vice president of the
The Union Bank of Dunn Center. Au
Garda State Bank.
thorized capital stock is $15,000.00 and
directors are V. H. Stickney, H. E.
The Clifford State Bank has increased Skauge, H. P. Johnson, Herman Leutz
its capital stock from $20,000.00 to and T. A. Tollefson.
$25,000.00.
First State Bank, Alamo. Authorized
capital stock is $15,000.00 and directors
The Union State Bank at Stanton has are C. S. Eckmann, H. W .Stockman and
N. N. Landro.
increased its capital stock from $12,000.00 to $15,000.00 and has changed its
Gerhard Larson is now bookkeeper
corporate name and headquarters to the
and teller in the First State Bank at
Union State Bank of Hazen.
Edmunds.

The Citizens Bank of Walhalla, which
has been operating under the Special
Deposit arrangement since October 28,
1923, has been reorganized and reopened
for business on July 7, 1924.

The Farmers State Bank at Page has
increased its capital stock from $10,000.00 to $25,000.00.
The First State Bank at Simcoe has
increased its capital stock from $10,000.00 to $15,000.00 and has changed its
corporate name and headquarters to
Peoples State Bank of Yelva.
The State Bank of Edinburg has in
creased its capital stock from $10,000.00
to $15,000.00 and has increased its
board of directors from three to five
members.
The First State Bank at Eckman has
increased its capital stock from $10,000.00 to $15,000.00 and has changed its
corporate name and headquarters to
Citizens State Bank at Lansford.
The secretary of state’s office has is
sued a charter to the Nome State Bank.
It has an authorized capital stock of
$15,000.00 and the directors are Martin
Miller, W . C. Macfadden and A. F. Fir.

H. B. Lysne has been elected assistant
cashier of the Bank of Berthold.
H. C. Helle is new assistant cashier
in the Security State Bank at Wildrose.
V. E. Anderson is assistant cashier
with the Devils Lake State Bank.
W . J. Botz succeeds M. M. Rafferty as
teller in the Citizens State Bank at
Sykeston.
New Bank at Dunn Center
The Union Bank of Dunn Center,
North Dakota, has opened for business
in the quarters formerly occupied by the
closed First State Bank. The new bank
has capital of $15,000. Officers are as
follows: Dr. V. H. Stickney, president;
Herman Lentz, vice president; H. E.
Skange,
cashier.
Stockholders
are
Y. H. Stickney, R. H. Johnson, H. P.
Johnson, Dr. A. P. Nochtivey, T. A.
Tollefson, all of Dickinson First Na
tional Bank.

THE

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

September, 1924

BA NK ER

FINANCIAL ADVERTISERS
CONVENTION
(Continued from page 66.)

W elcom e
A m e r ic a n B a n k e r s A s s o c ia t io n
M em bers

Open house will be in
order in Chicago from
September 29 to Octo
ber 2, and the welcome
awaiting you at the
Drovers Banks will
be warm and sincere.
D r o v e r s S e rv ic e

covers every phase of
modern banking, but
there is one important
service—handling live
stock proceeds—which
has been particularly
developed here and of
which we are justly
proud. It will be a
pleasure to show any
visiting banker how
this work is expedited.
Be sure to visit the
Drovers and the Stock
Yards while in Chicago.

rovers

NATIONAL B A N K =
IRU5T#SAVEVGS BANK

U n ion Stock Yards, Chicago

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Federal Reserve Bank of St. Louis

1836; produced 1160 cannon for the Con
federacy, the plates for the world’s first
iron-clad ship, the Merrimac, and muni
tions for all subsequent wars.
B e lle I s l e :
Site of a large Confederate
prison camp.
H e n r ic o C o u n ty C ou rt H o u s e : The
county seat since 1752; one of the original
shires of the colony and containing many
ancient records of interest and impor
tance in Virginia and colonial history.
P ow h a ta n ’ s G r a v e : Located just east
of Richmond; Powhatan’s bones, sup
posed, are now buried in Hollywood.
W h ere

C a p ta in

J oh n

S m ith

L an d ed :

He, with Captain Newport, explored the
James from Jamestown to Richmond and
stepped ashore at this point in 1607,
designating the place “ None Such.”
S ta te P e n it e n t a r y : Corner stone laid
in 1797.
W estm o rela n d C lu b : Old and hand
some club, owning paintings of value.
C o u n try Club o f V ir g in ia : One of the
most beautiful club estates in the South
and tournament ground for important
tennis and golfing events of state and
sectional prominence.
S ta te F a ir G ro u n d s : Scene of Vir
ginia’s annual fair, lasting from six to
ten days each year and attracting about
100,000.
F a c t o r ie s : Tobacco, paper, fertilizer,
flavoring extracts, iron and steel, wooden
ware, baking powder, stoves, visited an
nually by thousands of convention and
other visitors.
P a r k s : Numerous large and beautiful
parks located in various sections of the
city.
Monuments and Statues
General J. E. B. Stuart; General Robert
E. Lee; President Jefferson Davis; Gen
eral Stonewall Jackson; Redoubt No. 10,
marking the line of Richmond’s inner de
fenses, all on Monument Avenue; Wash
ington and other monuments and statues
in the Capitol Square; Soldiers? and
Sailors; Where Captains Smith and New
port landed in discovering this site;
Thomas Jefferson; Howitzers; site of Con
federate Navy Yard; General A. P. Hill;
Joseph Bryan; Wickham statue.
If youth but knew,
What age would crave,
Many a penny
Youth would save.
— Oliver Wendell Holmes.

September, 1924

THE

I O W A

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

BA N K E R

B A N K

N E W S

C O U N C IL O F A D M IN IS T R A T IO N
Io w a B a n k e r s A s s o c ia tio n
A D M I N I S T R A T I V E C O M M IT T E E

P r e sid e n t....................... C. J. W ohlenberg', P resid ent H olstein Saving's Bank
V ice P resid en t. .M. C. Sweney, Pres. M itchell C ounty Savings Bank, Osage
T rea su rer........................N. C. H offm an, Cashier M urray State Bank, M urray
S e cre ta ry ........................................................................ F ran k W arn er, Des M oines
G R O U P C H A IR M E N

C. C. Jacobsen, Chm. G roup 1 ...........P resident F irst State Bank, M apleton
E F K in g, Chm. Group 2 . . P resid ent F irst N ational Bank, W eb ster City
M C. Sw eney, Chm. G roup 3. .P resid en t M itchell C ounty Savings, Osage
W m R einecke, Chm. Group 4 ...........Cashier S traw berry P oin t State Bank
F red D urbin, Chm. G roup 5 ......................... Cashier M alvern N ational Bank
W . C. B ergm an, Chm. G roup 6. . . .P resid en t F irst N ational Bank, N ew ton
W R F in layson, Chm. Group 7, Pres. F irst N ational Bank, G rundy Center
Joseph K elso, Chm. G roup 8 ................. Cashier Bank o f J. K elso, Bellevue
D V Ferris, Chm. G roup 9 ...........Cashier F irst N ational Bank, D ia gon al
C.’ D.’ Evans, Chm. G roup 1 0 . . . Cashier South O ttum w a Savings, Ottum wa
T. R. R ich ardson , Chm. Group 11,Cash. Com m ercial State Bank, M ediaplois
C. E. Narey, E x -o ffic io ............... P resid en t F irst N ational Bank, Spirit Lake

FRANK WARNER
Secretary

Iowa Association Suggests Contract Form
Between Depositors and Banks
1ST A recent bulletin issued from the
office of Secretary Frank Warner, of
the Iowa Bankers Association, atten
tion is called to the recent Supreme
Court decision, the Federal Reserve
Bank of Richmond vs. Malloy, relating
to the collection of items passing through
banks. The Iowa Bankers bulletin re
views the case briefly and then sets forth
an opinion from Parsons & Mills, associ
ation attorneys, as to the best form of
contract to be printed on a bank’s de
posit ticket and other forms.
The Iowa Bankers Association bulletin
reads as follows :

On February 24, 1924, the Supreme
Court of the United States handed down
a very important decision relating to the
collection of items passing through banks.
This suit was begun by Malloy Brothers
in Florida in 1920 on a check, it is said,
of $9,000, drawn on November 30, 1920.
Your State Association has collected from
the Federal Reserve Board in Washington,
the Federal Reserve Bank of Chicago, and
Attorney Paton of the A. B. A., and clear
ing houses of various large cities of the
country, data on forms that they might
have prepared with reference to collections
subject to that decision. This bulletin
epitomizes this information, and also s u b
m its a fo r m o f c o n tr a c t b e tw e e n th e d e
p o s ito r s and banks, w hich fo r m has b een
e x p r e s s ly p r e p a r e d b y th e a tto r n e y s o f
y o u r A s s o c ia tio n f o r ou r m em b er banks. It

is recommended that this form be printed,
in small type, on the deposit ticket below
the name of your bank. Perhaps member
banks would prefer to have it printed
on the margin of the face of the deposit
ticket or on the back. It is also recom
mended that this form be printed in your
p a ss b ook s, and on sig n a tu re cards. Those
banks in larger centers might prefer to
print the same upon their r em itta n ce sh eets,
ad vice ca rds and p a r lists.

Statement o f Fact

The following is a statement of fact
with reference to the Supreme Court’s decison:

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Federal Reserve Bank of St. Louis

“ I n F e d e r a l R e s e r v e B a n k o f R ic h
m on d vs. M a llo y C ase, the plaintiffs

were the holders of a check which
they had deposited in a bank in Flor
ida. That bank forwarded the check
to another bank in Florida, which
transmitted it to the Atlanta Federal
Reserve Bank; and the latter trans
ferred it to the Richmond Federal Re
serve bank.
The Richmond bank
transmitted the check to the drawee
bank for collection and return. The
drawee bank stamped the check
“ paid” and charged it to the account
of the drawer, and sent to the Rich
mond bank its own draft drawn on
another bank, for the aggregate
amount of the checks received from
the Richmond bank, including the one
involved in this case. Immediately
upon receipt of the draft, the Richmon bank forwarded it to the bank
upon which it Avas drawn for payment.
That bank notified the Richmond bank
by wire that the bank Avhich drew the
draft (which was also the bank upon
which the check was drawn) did not
have sufficient funds to its credit to
pay the draft. The Richmond bank
gave proper notice that the draft was
dishonored, but the bank failed with
out meeting the draft. The amount of
the check was therefore charged by
the Richmond bank to the Atlanta
bank, which in turn charged the
amount to its immediate correspond
ent and so on until it was finally
charged back to the plaintiffs.
“ The tAvo questions for determina
tion presented to the court were as
follows: (1) Could the suit be main
tained against the Richmond bank;
and (2) if so, did the failure of the
Richmond bank to require payment of
the check in m on ey, and its acceptance
of what turned out to be a worthless
draft in lieu thereof, create a liability
against it and in favor of the owners
of the cheek for the amount of the
loss?’ ’
Attorney Parson’ s Opinion.

(No. 502)

Gentlemen: You call my attention to
the recent decision of the Supreme Court
of the United States in the case of Rich

mond Federal Reserve Bank vs. Malloy.
It seems to me that in that case there
Avere two questions for determination pre
sented to the court. First, could a suit
be maintained against the Richmond Bank",
and, second, did the failure of the Rich
mond bank to require payment of the
check in m o n ey , and its acceptance of
AAThat turned out to be a Avorthless draft
in lieu thereof, create a liability against
it and in favor of the owners of the check
for the amount of the loss? The court an
swered both questions in the affirmative,
answering the first question by reason of
the fact that under a statute of Florida
the bank receiving the collection from an
other bank became the agent of the per
son owning the collection and therefore
could be sued direct by that party. In
the second place the Richmond bank was
held liable by reason of the fact that hav
ing the item forwarded to it for collection
it had no authority to accept anything
whatever e x c e p t m on ey and in so doing it
does so at its OAvn risk, that is elementary.
A bank or no one else having an item for
collection has authority from the mere
fact of having it for collection to accept
anything other than money in payment.
I do not knoAv of any respectable court
that has held otherwise, because where
anything other than money is accepted as
payment it must be by reason of some
rule or agreement to the contrary.
Our courts in IoAva have held the rule
to be that where the holder of a bill of
exchange payable at a distant place de
posits it with a local bank for collection
he thereby assents to the course of busi
ness of the local bank to which the bill
is forwarded becomes his (the owner’s)
agent and is liable to him directly for
negligence in failing to present the bill
for payment Avithin the proper time, and
as necessary deduction from this holds
that where the forAvarding bank has exer
cised due diligence in selecting an agent
it is not liable for the act of the agent
in negligently failing to take the proper
steps to collect. This rule was laid down
in the case of Guelido vs. The National
State Bank of Burlington, 56 IoWa, 434,
and it has also been held in the 107 Iowa,
543, in the First National Bank vs. Ger-

THE

NORTHWESTERN

1876

BANKER

1924

N ot Spectacular!
There is nothing spectacular about the
Consolidated National Bank service. It analyzes
the needs of the Iowa banker and gives him
prompt, accurate service in every transaction.
Competent men, experienced in every line
of business, are back of the Consolidated
National—this, coupled with the real desire to
serve—
makes our list of correspondent banks
continue to grow and continue to be
satisfied.
J. K. Deming, President
Geo. W. Myers, Vice President
Jas. M. Burch, Vice President
Herman Eschen, Secretary
Jos. W. Meyer, Cashier

Consolidated National
Bank

September, 1924

man Bank, that the negligence of the
notary public in failing to learn the resi
dence of the endorser of an inland draft
and giving proper notice of its dishonor is
not chargeable to the bank of which he is
assistant cashier, and by placing the draft
which it held only for collection in his hands
for protest although no protest of the draft
was required by law for the law recognized
the giving of notice in cases of protest as
part of the official duty of the notary.
However, such are the rules at common
law covering this.
The last custom of
the banks to do certain things may be so
unreasonable the parties are not bound
by them where they do not assent, so
the matter must be covered by agrement
or something which has the effect of an
agreement.
Very truly yours,
P arsons & Mills,
Attorneys for the Iowa State
Bankers Association.
Form of Contract Suggested by Attorney
Parsons

(Opinion No. 548— July 28, 1924)
"Checks, drafts or other paper received
by this bank on deposit or for collection
are taken at the risk of the depositor, and
this bank is authorized to accept in pay
ment money, checks or drafts.
"Should returns sent by collecting
agents for such items be dishonored, the
amount will be charged to the account of
the one from whom such collection item
was received, and the collection items re
turned to the party from whom received
when and not until received by this bank.
‘ ‘ This bank will not be liable except by
not exercising reasonable care in selecting
collecting agents, and will not be respon
sible for any negligence, and expressly re
serves the right to send any item for col
lection to the bank upon which drawn or
any other bank as it may see fit.
" A l l checks or drafts received by this
bank on deposit or otherwise will be
charged to the account of the party from
whom received if dishonored on presenta
tion. ’ ’

U NI T ED S TA TE S DEPOSITORY

Form Drafted by Thomas B. Paton.
Attorney for the A. B. A.

DUBUQUE, IOWA

As a matter of interest the following
form drafted by the attorney of the A.
B. A., is reprinted:
"B ig h t is reserved and the bank is
authorized to forward items for col
lection or payment direct to the drawee
bank or through any other bank at its
discretion and to receive payment in
drafts drawn by the drawee or other
banks, and, except for negligence, this
bank shall not be liable for dishonor
of the drafts so received in payment
nor for losses thereon.”

W . M . HETHERINGTON, President
J. C. COLLIER, Vice President
H. A. KOESTER, Cashier
H. C. W . SCHOLZ, Asst. Cashier

FIRST NATIONAL BANK
DUBUQUE. IOW A

Capital, Surplus and Profits
Resources
-

$ 500,000.00
4,900,000.00

Accounts of Banks Solicited

Write Us for Terms

NOTARIAL SEALS
D e s
R u b b e r

o i n e s

S t a m p

o r k s

“ SA M E D A Y SE R VIC E”

206 Fifth Ave.

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

DES MOINES

Ask Your Printer to Insert Agreement
of Forms

It is suggested that your deposit tickets
and other forms be reprinted if deemed
advisable by you and when this is done,
that you ask your printer to insert the
agreement form prepared by Parsons &
Mills, above given, so that your bank may
not in the future be held liable because
of lack of a contract or agreement be
tween your bank and your customers for
whom you may be handling collection
items. Extra copies of this bulletin may
be obtained upon request.
Yours very cordially and respctfully,
P rank W arner, Secretary.

The possession of great powers no
doubt carries with it a contempt for
mere external show.— Garfield.

¡September, 1924

T li E

NORTHWESTERN

BANKER

Is Made Salesmanager

Edward J. Kelly, known to hundreds
of Iowa bankers as “ Ed ” Kelly, has
been appointed Salesmanager for Brokaw

Prepared for the Unusual
Our organization has been
built on the ideal of being
always prepared for the
unusual.
This makes us ready at all
times to meet the most
exacting requirements of
bank correspondence with
unfailing promptness and
complete satisfaction.

EDWARD J. KELLY

Ba n k er s Trust Ga

& Company of Chicago. Mr. Kelly has
been representing Brokaw & Company
in the state of Iowa for a number of
years and has built up an extensive ac
quaintance in the state which will mate
rially assist him in his new duties.

a n k

Cor. 6 th a n d Locust Sts-, Des M oines
Capital $1,000,000. Su rp lu s$ 2 oo,ooo.
Memberfèdera! Reserve Bank

Arion State Bank

At the annual meeting of the Arion
State Bank, Arion, Iowa, the following
officers were elected : President, Sam
Pox; vice president, L. C. Butler; cashier,
Glenn Leslie. This institution is capital
ized at $25,000.00 and has deposits of
$40,000.00.
Senator Harmon Dead

Former State Senator Merritt W . Har
man, a number of years vice president of
the First National Bank of Independence,
Iowa, died recently at Mercy Hospital
in Des Moines.
Senator Harmon had practiced law for
more than fifty years in Independence,
Iowa, and was in the active practice of
his profession up to July 1st, when, be
cause of failing health, he went to the
city of Des Moines to be in the home of
his son, Ray W . Harmon, who has been
a resident of that city for a number of
years. His daughter and son are the
only heirs-at-law and were with him dur
ing his last sickness.
No man in northeastern Iowa stood
higher in his profession or as a citizen
than M. W . Harmon.
It is from books that wise men derive
consolation in the troubles of life.—
Hugo.

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

THE

OLD

L.IN E

CEDAR R A P II
LIFE IN S U R A N C E CO.

General Agency Chances Open
in Four Western States
A Good chance for Bankers with
Ability of Management
GJiRalbiaa.

Jtr«s

CJ5. S t xx b o c fe z ,

H O M E O F F I C E .‘ C E D A R

Secy.

R A P I D S . IO W A

THE

NORTHWESTERN

BANKER

September, 1924
Monticello Banker Married

DON’T TAKE CHANCES
.

Frank R. Thompson, assistant cashier
of the Lovell State Bank of Monticello,
Iowa, was recently married to Miss Leah
Mae French of Monticello. They will
make their home in that city.
Succeeds Son

W hen You Loan M oney on Real Estate
Insure the Title

C. Falcon, of Mount Vernon, Iowa,
has purchased a substantial block of
stock in the Central City, Iowa, Savings
Bank, and becomes a director and pres
ident of the institution, succeeding his
son, W . C. Falcon. Mr. Falcon is also
president of the Citizens State Bank of
Mt. Vernon.

TTTI F

IN S U R A N C E

Increase Capital Stock

will protect the title to any piece o f real estate
on which your bank may loan money.
W hy take any chance on titles to real estate.
Secure a Southern Surety Title Insurance Pol
icy which guarantees the title.
There are more law suits over land titles than
from any other source.

The capital stock of the First Na
tional Bank of Tama, Iowa, has been in
creased from $50,000 to $75,000. This
is one of the pioneer banking institutions
of Iowa, having been organized fiftythree years ago. Officers are : President,
T. J. Bracken; vice presidents, C. R.
Johnston and E. G. Penrose; cashier,
Chalmers Winders; assistant cashiers,
Margaret Kearney and Katherine Hartstock. The bank has deposits of $900,000.

Capital

Surplus

Bank Has Fiftieth Anniversary

$ 1 ,0 0 0 ,0 0 0 .0 0

$ 6 0 0 ,0 0 0 .0 0

The American Savings Bank & Trust
Company of Burlington, Iowa, was or
ganized September 1, 1874, and the re
newed Articles of Incorporation were
filed with the Secretary of State.
The original capital stock of the bank
was $60,000 and increased by stock di
vidends from time to time to $300,000.
It now has capital of $300,000; surplus
$300,000, and undivided profits $350,000.
The bank has enjoyed continuous
growth and prosperity and has not missed
paying a dividend from 6 per cent to
20 per cent annually since 1877 and now
has assets over $5,500,000 without merg
ing with any other bank.
Judge Mason was the first president.
Jas. J. Ransom, the present president, is
the only original stockholder and direc
tor living. T. W. Kriechbaum, active vice
president, entered the bank in 1877 as

If the land is
worth your
consideration
as an investment
it is worthy of
a guaranteed
title

Southern Surety
Company
1 itle Insurance D epartm en t

The answer
to all title
problems is

JANSEN

H A IN E S ,

V ic e P r e s id e n t

201 Youngerman Building

Title
■Insurance

Des Moines, Iowa

Advertise in the Northwestern Banker

FIRST NATIONAL BANK,
D IR E C T O R S
B. F SWISHER
Pickett. Swisher & Farweli
R. J. HOXIE
Secretary Waterloo Fruit &
Commission Co.
A M. PLACE
Vice President
E. E. PEEK
Vice President Waterloo Bldg.
& Loan Association.
H. W. GROUT
Real Estate
’ A MARSH
P re sid e n t

/âSS

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

'T'HE First National Bank of Waterloo is
1 equipped to give you the highest degree of
SERVICE, and do it promptly and efficiently
at all times.
Fifty-eight years of steady con
servative growth enables this bank to extend
such service.
O F F IC E R S
C. A. MARSH, President
A. M. PLACE, Vice President
WILL A. LANE, Cashier
P W ETCUTMEY, Assistant Cashier
O. L. MORRIS, Assistant Cashier
Total

Resources Over $2,900.000.00.

VC^aterJoo, /<oiva
D IR E C T O R S

w. w. MARSH

President Iowa Dairy Separa
tor Co., President Associated
Mfg. Co.
J. T. SULLIVAN
Lawyer.
I O. TRUMBAUER
Vice President Farmers Loan
and Trust Co.
H. A. MAINE
President H. A. Maine & Co.
WILL A. LANE
Cashier

September, 1924

THE

messenger boy. Judge John C. Power
has been attorney for the bank since
1875.
The present officers: Jas. J. Ransom,
president; T. W . Kriechbaum, active vice
president; S. P. Gilbert, vice president;
A. F. Andersen, cashier; E W . Wischmeier, assistant cashier.
Directors: Jas. J. Ransom, John C.
Power, S. P. Gilbert, Frank E. Schramm,
E. C. Gould, F. A. Klein, A. C. Ita, Henry
C. Koestner, T. W . Kriechbaum.
New Building Opened

The new building of the Farmers and
Merchants State Bank of Columbus Junc
tion, Iowa, was recently formally opened
to the public with appropriate ceremo
nies. Carnations and pencils were dis
tributed to the many visitors and patrons
on opening day. The new banking home
is modern and convenient in every re
spect, having a downstairs rest room and
consultation room, as well as various
other up-to-date features.
Returns from Motor Trip

J. F. W . Vi’ba, cashier of the First Na
tional Bank of Garner, Iowa, has returned
from a three weeks’ motor trip through
Minnesota, the Black Hills, the Bad
Lands and thence to Yellowstone Park
and return. He was accompanied on the
trip by John Suurballe, county treasurer.

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

BA N K ER

Is Elected Secretary

Andrew J. Huglin, cashier of the Des
Moines National Bank, was recently
elected secretary of Hyperion Field and
Motor Club, Des Moines.
McPherrin Calls Committee Meeting

Grant McPherrin, president of the
Central State Bank of Des Moines and
chairman of the branch banking commit
tee of the American Bankers Association,
recently called a meeting of his commit
tee to discuss the report to be presented
at the annual bankers meeting in Chicago
in September. The meeting was held in
Des Moines.
The bankers who attended the meet
ing held in the Central State Bank were
William J. Raphje, vice chairman of the
branch banking committee and president
of the Mid-city Trust and Savings Bank
of Chicago ; M. P. Beebe, president of
the Bank of Ipswich, Ipswich, South Da
kota; S. T. Hodgson, cashier of the Farm
ers and Merchants Bank of Hannibal,
Missouri; H. A. McCauley, president of
the Sapulpa State Bank, Sapulpa, Okla
homa, and E. M. Baty, secretary of the
Chicago and Cook County Bankers As
sociation.

ings Bank at Sioux City, Iowa, to fill the
position left vacant by the death of the
late W . P. Manley, founder of the bank.
Thomas P. Treynor, cashier, becomes
vice president to succeed Mr. Sinclair
and C. T. McClintock moves up from
assistant cashier to cashier.
Mr. Sinclair has been engaged in bank
ing in Sioux City for 32 years, 28 of
whieh have been with the Woodbury
County Savings Bank.
W ill Become National Bank

The Bank of Hamburg, Iowa, building
was destroyed in a recent fire, the entire
interior and equipment being a total loss.
It was covered by insurance. The bank,
which is now closed, plans to reopen as
a national bank.
Resigns at Storm Lake

Is Elected President

L. W . Mittendorf, for the past six
years auditor and cashier of the Commer
cial Trust and Savings Bank of Storm
Lake, Iowa, has resigned from that posi
tion to become assistant secretary of the
Farmers Loan and Trust Company of
Sioux City, Iowa, entering upon his new
duties September 1st. Mr. Mittendorf
originally came to Storm Lake from
Sioux City and will be welcomed back to
that city by many friends.

George Sinclair, for 32 years engaged
in the banking business, has been elected
president of the Woodbury County Sav

The hero is suffered to be himself.—
Emerson.

H e r M a j e s t y —the

A m eric a n D a iry C ow
From September 28th to October 4th, America will
worship at the shrine of that queen of domestic animals
— the cow.

THE WORLD S CONGRESS OF DAIRYMEN
will convene in Milwaukee between those dates. W iscon
sin, with 2,763,000 dairy cows leads the nation. Called
“ the Cream Pitcher” of the United States, Wisconsin surpasses all states in the combined value
of its butter, cheese and condensed milk products. Its supremacy in the manufacture of cheese
has long been established, 82 per cent of all the cheese produced in the United States being made in
the Badger state.
Help your community to profit by W isconsin’s experience in the development of the dairy
industry. Bankers should attend this congress on Friday, October 3d, the day following the close
of the A. B. A. Convention in Chicago.

First W isconsin National Bank
M IL W A U K E E
Capital and Surplus
Ten Million Dollars

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

THE

NORTHWESTERN

BANKER

September, 1924
Title Department Established

The Same Kind of Attention
You Yourself W ould Give It!
Lots of times you have banking business you wish you could
take care of yourself—but it requires some one right on the
ground in this part of the country.
In cases of this kind we are equipped to serve you efficiently
and promptly. We are taking care of important collections
and other matters for many distant banks every day. Our
facilities enable us to do this with a minimum of expense, and
with utmost speed.
This bank, too, is an ideal place to deposit your surplus
funds.

The Southern Surety Company, of Des
Moines, realizing the growing necessity
for Guaranteed Titles in Iowa, has es
tablished a Title Insurance Department
and has formed a connection with the
Des Moines Title Company, Abstractors,
with adjoining offices.
This department will be in charge of
Jansen Haines, who is a vice president
and director of the Southern Surety Com-

Security State Ban\
KEOKUK

IO W A

B an k
P ostin g M a c h in e s
E Q U IP M E N T , IN D E X SHEETS
JANSEN HAINES

Unquestionably when you are in need
of posting machine equipment, indexes
or sheets, you should ask us for a
Tatum Catalogue and Price List.
They manufacture the best trays on the
market—sturdy, strong and will last a
lifetime. A s k us to show you.

KOCH BROTHERS
Fourth and Grand

Des Moines, Iowa

H O L S T E I N S A V IN G S B A N K
C apital $90,000.00

Surplus and Profits $70,000.00

This hank invites correspondence from banks and bankers. You’ll find a
warm, courteous atmosphere in all of your transactions with this insti
tution.
C H AS. J. W O H L E N B E R G , President

HOLSTEIN, IOWA

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

pany; Frank C. Sabourin, assistant sec
retary of the Southern Surety Company,
and H. C. McDaniels, examining at
torney.
The Southern Surety Company is now
insuring, under the authority of the In
surance Commission of the State of Iowa,
bonds or policies, giving absolute pro
tection to owners or mortgagees of real
estate in Iowa.
The Southern Surety Company orig
inally incorporated in 1907, but in 1918,
with enlarged capital and facilities, re
incorporated under the Iowa laws, with
home offices at Des Moines. Its growth
has been rapid and successful in the
forty-one states in which it has been au
thorized to do business.
Jansen Haines has lived in Des Moines
for more than twenty years and was for
many years president of the Des Moines
Gas Company. He has been a director
and vice president of the Southern Surety
Company since it moved to Des Moines
in 1918. Frank C. Sabourin has been
connected with the Southern Surety Com
pany since 1910 and H. C. McDaniels is
an attorney and has for many years
made a specialty of title examinations.

September, 1924

THE

NORTHWESTERN

BANKER

A C A T IO N S are over
— everybody getting
—— 1d o w n to business
with renewed vigor and
determination.

Take advantage of the
complete facilities offered
by the old Iowa National
in Des Moines.

OFFICERS
H o m e r A . M ille r
C lyd e E . B r e n to n
H . T . B la c k b u r n
G eo. E . P e a r s a ll
A lb e r t J . R o b e r ts o n
J. R . Cap p s
W a lt e r H . M ille r
R . I j. C h ase, Jr.
Jam es F . H a rt
J. B u rson
S h erm an W . F o w le r

P re sid e n t
V ic e P re s.
V ic e P re s.
V ie e P re s.
V ic e P re s.
C a sh ier
A s s t . C ash.
A s s t. C ash.
A s s t . C ash.
A s s t . C ash.
A s s t . C ash.

DIRECTORS
G eo. N . A y r e s
F . H . L u th e
H . T . B la c k b u rn
M . M a n d e lb a u m
C ly d e E . B r e n to n
E . T . M e re d ith
H o w a r d J . C la rk
H o m e r A . M ille r
G a r d n e r C o w le s
G eo. E . P e a r s a ll
J. H . C o w n ie
R a lp h H . P lu m b
E . C. F in k b in e
M. S h lo ss
J. B . G reen
E . R . S to tts
W in . C. H a rb a c h
O. P . T h o m p so n
G. M. Van E vera

Io w

Na t io n a l

bank

D e s M oines Savings Bank and Trust Co m pan y
Iowa's Latest Bank - Des M oines - Sixth and Walnut

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

THE

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

Humming

A t y o u r service
T RUST &

SAVINGS

Western Illinois

B A N K

CLINTON, IOWA.'

Remember it this way - "PEOPLE S TRUST
“TH E

BANKERS’
BANK”

Here is a bank for banks and bankers
— a strong financial organization
backed by a half million dollars in
capital,
surplus
and
undivided
profits. Our service to correspon
dents is prompt and painstaking.

Iowa National Bank
Davenport,

Iowa

C H A S . S H U L E R , Pres ide nt
F R A N K B. Y E T T E R , V i c e Pres.

S T A A K , Asst. C a sh ie r

WM.

H. G E H R M A N N , V i c e Pres.

“ The B a n k o f S t a b i l i t y a n d Progress’ *

O F F IC E R S

“ July 16th, a stranger who gave his
name as L. S. Brown made a cash de
posit of $70 at the State Bank of Mc
Gregor. The next day he went in with
a personal check for $250 drawn on the
Second National Bank of Beloit, Wis.,
and wanted to deposit $180 of it, taking
$70 in cash. F. K. Bartholomew, the
assistant cashier, suggested that he draw
out the $70 already on deposit and leave
the $250 for credit when collection was
made. The man was so reluctant to do
this that Bartholomew suspected fraud,
and after the fellow left with his $70 in
cash, he called up the Second National
Bank of Beloit and told them about the
transaction. They confirmed his suspi
cions, saying they had no account in
Brown’s name and giving a description
of the man who as Mackem had de
frauded them, and who was wanted in
Minnesota and Michigan for similar
tricks.
This description fitted L. S.
Brown.
“ In the meantime Brown had gone to
the river to take the boat to Prairie
du Chien, as he said he was going to the
sanitarium for treatment. Mr. Bartholo
mew got in touch with J. A. Ramage,
the cashier, who went to the boat and
asked Brown to the bank.
‘ ‘ Sheriff Sutherland came Friday from
Beloit and took Brown away with him.
In the mattress of the jail where he
spent the night were found many blank
checks of banks in Wisconsin, Michigan
and Minnesota, evidently for future use.
“ This was a nice piece of detective
work on the part of Mr. Bartholomew,
and the banks in this and neighboring
states can thank him for saving them
losses. We understand Brown, Mackem,
or Reese, was being sought by the bank
ers association of the states where he op
erated, and no doubt Mr. Bartholomew
will get his deserved reward for his
quick action in this matter.”

avingsBank

eopies lrusi

HERMAN

“ F. K . Bartholomew Secures Arrest of
Forger

PEOPLES

and

L O U I S G. B E I N , C as h ie r

Banker Turns Detective

F. K. Bartholomew, assistant cashier
of the State Bank of McGregor, Iowa,
distinguished himself recently as a
“ detective.”
One of his local papers
says the following:
“ Bad Check Artist Caught Here

in Eastern Iowa

la g ]
Ü

September, 1924

BANK E E

If You Choose

R . O. H u tc h iso n
P re sid e n t

J a m e s L oon n n
V ic e P r e s id e n t

C h a rle s W „ K n o o p
C a s h ie r

E . A . S c h a e fe r

the Blackhawk National of W aterloo for your
banking connection, in this territory— you need
not worry about the manner of efficiency in the
handling of your items, nor the matter of service
— because those are the two factors upon which
the Blackhawk National was founded.

A u d ito r

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Federal Reserve Bank of St. Louis

ln fo rm a tio n ~ Q u ota tio n s

•

A s s t . C a s h ie r

L ila Blarcham

P A C K ER S SECU RITIES
SPECIALISTS

Blackhawk National Bank
Waterloo, Iowa

209 SOUTH LASALLE ST.

CHICAGO

September, 1924

THE

NORTHWESTERN

BANKER

Elected Assistant Cashier
James A. Tiernan, of Hecla, So. Dak.,
lias purchased the stock of A. R. Kemman
in the State Bank of New Hampton,
Iowa, and likewise succeeds Mr. Kem
man as assistant cashier of the New
Hampton institution. Mr. Tiernan has
been assistant cashier of the First Na
tional at Hecla for the past four years.
Mr. Kemman plans to take up his resi
dence in California.

Y I ^H E D es M oin es business
of Iowa banks is invited.
T h ese banks are thoroughly
equipped in every department

Valley National Bank

Citizens State, Wyoming
At the annual meeting and election of
the Citizens State Bank of Wyoming,
Iowa, the following officers were elected
for the ensuing year: President, John
Thomsen; vice president, James Inglis;
cashier, C. J. Ingwersen; assistant cash
iers, R. L. Truesdale and S. H. Brainard. This institution, organized eleven
years ago, now has deposits of $489,568.22.

AND

Valley Savings Bank
DES MOINES, IOWA
Established 1872

Combined Capital and Surplus

$ 1, 100, 000.00

R. A. CRAWFORD
President

C. T. COLE, J r.
V ice-President

JOHN H. GINSBERG
Asst. Cashier

D. S. CHAMBERLAIN
V ice-President

W. E. BARRETT
Cashier

C. M. CORNWELL
Asst. Cashier

Becomes Cashier at Grandview
George Dunfrund, who has been con
nected with the Davis County Savings
Bank of Bloomfield, Iowa, for the past
years, has accepted the cashiership of the
Grandview Savings Bank at Grandview,
Iowa. He likewise secures a substantial
stock interest in the institution of which
he is now cashier.
Celebrates Fiftieth Anniversary
The Peoples National Bank, of Inde
pendence, Iowa, recently celebrated its
fiftieth anniversary.
The Peoples National Bank was or
ganized under the act of congress June
3, 1864, entitled an act to provide a na
tional currency secured by pledge of the
United States Bonds and to provide for
the circulation and redemption thereof.
The certificate of authority was issued by
John J. Knox, comptroller of the cur
rency, on September 17, 1874. Capital
stock at that time was paid in to the
amount of $33,830.00 and the bank com
menced business on October 21,1874, with
the following officers and directors: E.
Ross, president; C. W . Lillie, vice presi
dent; J. F. Coy, cashier; J. W . Myers,
teller. The directors were: E. Ross,
C. W . Lillie, H. Burlington, J. W . Myers,
A. H. Trask, E. W . Purdy, August Myers,
J. L. Winnegar and C. R. Millington.
The steady growth of the bank is shown
by official statements. December, 1876, it
had resources of $153,196.83, deposits
$35,401.11 ; October, 1890, resources
$237,509.94; February, 1900, resources
$264,468.31; November, 1909, resources
$580,562.62, deposits $403,426.35; the
last statement gives resources of $1,066,878.03 and deposits $785,956.54.
The pen is the tongue of the hand: a
silent utterer of words for the eye.—
Beecher.

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Federal Reserve Bank of St. Louis

Steady, Substantial Growth
Commenced Business September 20, 1920
DEPOSITS
DECEMBER 31,

1920_______________

$401,240.71

DECEMBER 31,

1921_______________

$1,023,010.71

DECEMBER 31,

1922_______________

DECEMBER 31,

1923____

Capital $250,000.00

$1,237,671.60

$1,666,461.16
Assets Two Million Dollars
THE

U n it e d S t a t e B a n k
DES MOINES, IO W A
Royal Union Life Building— Seventh and Grand

Capiial,
J u r p lu s

O F F IC E R S
A lfred G. Smith,Chairman
A l f r e d C.Smith,Pr&r.
Halleck W Seaman.VPrej’

F roX T + u T

George L . C u r t i d Y E r « 1.

^ 7 5 0 ,0 0 0 , 0 0

O l i v e r P. P e t t y ; Cashier.

A bank where the service is gratifying to all. A bank where hun
dreds of Iowa bankers have maintained an account for years.
If you are contemplating a new correspondent get in touch with
the City National.

R S IX

T R IL L IO N

d o l l a r s

THE

NORTHWESTERN

BANKER

September, 1.924
New A . I. B. Chapter

IO W A
Investment Securities
W e o ffe r th e u n s o ld p o r tio n
o f th r e e I o w a In v e s t m e n t
S e c u r itie s w it h o u r r e c o m
m e n d a tio n .
N ORTH EA STER N IO W A POW ER C O M PAN Y
6 % First Lien Gold Bonds

Due 7-1-1929

Price to Yield 6 %

This Company has recently acquired the properties of The Consumers
Power Company, of Osage; Calmar Electric Company, and The Peoples
Power Company, as well as a controlling interest in The Peoples Public
Service Company, of Elkader. About 75 communities in 9 counties are
supplied electric current. Population of territory served approximately
100,000.
THE H A L L IG A N C O M PAN Y
Davenport, Iowa
61/ 2% Conv. Gold Notes

Due 7-1-27

Price to Yield 6.50%

The Halligan Company and predecessors have been favorable known in the
grocery trade since 1887. The Company is engaged in a fundamentally
sound industry, distributing food products in 7 states, and we consider
these Notes excellent investments. Net Earnings are very satisfactory and
the business is rapidly growing. Total tangible assets are $4,855 for each
$1,000 Note.
TH E COLLIS C O M PAN Y
Clinton, Iowa
7 % 1st M tg. Sinking Fund

Due 1925-1934

Price 100 Yielding 7 %

The Company began business in 1903 with a capital of $900 and now has
total assets of $876,540.86. These $150,000 Bonds are a First Mortgage
on the Real Estate, buildings, machinery and other fixed assets and are
further secured by pledge of 1,171 shares of Common Stock of The Collis
Products Company out of a total of 3,000 shares. This Collateral is very
valuable. According to Balance Sheet prepared by Messrs. Marwick, Mitchell
& Co., there are $5,733 in assets for every $1,000 bond. Net Earnings for
1923 were 10 times interest charges on this issue.

Q U A IL €
\>\L

C lJ N jjy

Installs Radio Set

IJ V c

BONDS FOR INVESTMENT
K A H L B U ILD IN G
D AVEN PO RT, IO W A

At a meeting held in Spencer, Iowa,
the bankers of Clay county and a few
from adjoining counties organized the
first county chapter in Iowa of the Amer
ican Banking Institute.
James F. Hart, assistant cashier of the
Iowa National Bank of Des Moines, who
is a member of the executive council of
the National Association and is in charge
of the Iowa territory, was present at the
meeting and through his efforts the local
chapter was organized. Mr. Hart is
greatly interested in the success of the
Institute and gave a very thorough ex
planation of the work and its scope and
the Clay county chapter feels greatly in
debted to him for his advice and coop
eration.
It was decided to start the course about
October 1st, holding the sessions once a
week during the winter until each course
is completed, which will be about May 1st
of each year. The sessions will be con
ducted by a competent instructor and on
the first course to be taken up, which will
be commercial law, it is likely that an
attorney will be obtained by the chapter.
Every bank director, officer and em
ploye in Clay county and towns in ad
joining counties is invited to enroll and
it is now expected that bankers from
Hartley, Linn Grove, Sioux Rapids, Ruthven, Terrill, Spirit Lake and Milford,
outside of the county, will join the ranks.
At the meeting forty-eight members
were enrolled and signed up and it is ex
pected that a class of at least seventyfive will be enrolled before the course
starts in the fall.
The name of the local organization is
the Clay County Chapter of the Ameri
can Institute of Banking and the follow
ing officers were elected:
President— Vernon Clark, cashier Citi
zens Savings Bank, Fostoria.
Vice President— Carl W . Moeller, as
sistant cashier Everly Bank, Everly.
Secretary-Treasurer— Clarence Bittinger, assistant cashier Farmers Trust &
Savings Bank, Spencer.
Members of the Executive Committee—
J. H. Stewart, Webb; II. G. Morrison,
Peterson; Miss Mae McElroy, Milford;
C. C. Bender, Spencer; D. Modisett, Ruthven; Miss Anna Peterson, Royal; O. W .
Parsons, Spirit Lake.

29 SO. L A SA LLE STREET
CHICAGO, ILLIN O IS

The Central Savings Bank of What
Cheer, Iowa, has installed a radio receiv
ing set for the use of their farm cus
tomers in receiving market reports. This
is in connection with Station W HO at
Des Moines.

Descriptive circulars on the above issues will gladly be sent you upon request.
Orders may be telegraphed at our expense.
The information contained in this circular has been obtained from sources which we
consider reliable. While not guaranteed, it is accepted by us as accurate.

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Federal Reserve Bank of St. Louis

Is Elected Assistant Cashier

John J. Jones has been elected assist
ant cashier of the Mahaska County State
Bank of Oskaloosa to succeed Irene D.
Roberts, resigned.

September, 1924

THE

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

What a satisPaction it______
others-to convey suggestions
oPencouragement- to t
in their achievements
Hundreds of bankers____
w e sslm g S e r v ic e s to h elp them
to h e lp o th e r s

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Federal Reserve Bank of St. Louis

BA N K E R

THE

NORTHWESTERN

BANKER

September, 1924

New Device to Encourage
Thrift
Operating on the theory that the aver
age American citizen, being the reverse
of thrifty and economical, needs an ef
fective stimulant to prove his saving
ability, the National Bank Supply Com
pany, 226 Lafayette Street, New York
City, has recently presented to the bank
ing fraternity a new and unique thrift
building and deposit producing device.
J. F. Punzak, general sales manager
for the National Bank Supply Company,
explains the purpose and method of the
new device as follows:
‘ ‘ This organization is operating on
the well-known theory that for the aver
age American, man or woman, being the
reverse of thrifty by nature, an effective
stimulant is required to not only induce
the initial deposit, normally a simple
matter, but to permanently instill the
habit of thrift so that the account may
continue to grow and become profitable
to the hank as well as the depositor,”
says Mr. Punzak. “ The thrift move
ment in this country is a very funda
mental one and has been largely handi
capped in the past through the lack of a
practical medium of perpetual contact
between the thrift account and the bank.
With this in mind the dollar sign wal
let bank was finally perfected and
placed on the market.
‘ ‘ This new device differs very radi
cally from the usual run of savings
banks in several essential particulars. A
striking feature is the fact that the bank
is combined with an item of general
utility in the form of an all-leather wal
let providing a real ‘ tie-up’ between
the depositor and the bank, being car
ried constantly on the person.
The
dollar sign takes only dimes, the coins
are visible, conserving the tellers time
as a glance is sufficient, and the neces
sity of counting a miscellaneous assort
ment of coins is automatically elimi
nated. The depositor, knowing the ca
pacity of the bank, has a definite goal,
is never disappointed at the count, and
whenever he may be in the vicinity of
his bank an ever-present reminder is
urging him to make a deposit. And so
the habit of entering the bank often is
formed.
“ The bank itself is made of heavily
plated brass and aluminum, very light,
yet compact and durable. It is shown
in seven different types of wallets in
cluding two very attractive styles for
the ladies in neatly grained leather, with
a change purse, a billfold and mirror.
The monogram and advertisement of the
bank is impressed on the wallet in genu
ine gold leaf.”
In so complex a thing as human na
ture, we must consider it is hard to find
rules without exception.— George.

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Federal Reserve Bank of St. Louis

September, 1924

THE

NORTHWESTERN

BANKER

One of Three Mural Paintings in Banking Room

E H A V E m oved on apace since the days o f the Covered W a gon
— then it was by w ay o f the humble ferry and prairie schooner
that the W estern Empire was reached by the throngs o f explorers,
adventurers and homeseekers. Bridges and railroads? T h ey are quite
modern. For hoop-skirts and beaver hats, the ferry was safe conduct

to their land o f Heart's Desire.
With the undaunted spirit
of the sturdy pioneers, the
Federal Bank, contributing
its great, new building to
the progress of Iowa, has
set new standards of effici
ency and service.

Courage and vision have
made this bank a serv
ice institution of larger
usefulness to banks and
individuals.

-“ A B a n k f o r A l l t h e P e o p l e

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Federal Reserve Bank of St. Louis

THE

100

NORTHWESTERN

BANKER

September, 1924
Will Have Coin Exhibit

E. L. Harris, manager bank relations
department, Federal Reserve Bank of
Chicago, made an announcement that a
display of counterfeit currency and coins
and an exhibit of statistical charts on re
discount operations, currency and coins,
the work of the Federal Reserve, what
it has accomplished and its future, and
check collections will be on display in
the lobby of the Federal Reserve Bank
at Chicago, during the A. B. A. conven
tion.
This exhibit of statistical charts and
counterfeit currency and coins created
quite a bit of comment at the Atlantic
convention in 1923 and it was suggested
by many bankers in this territory that
the same display be arranged for at the
Chicago convention, September 29th to
October 2d.
D. B. Brann, Iowa representative of
the Federal Reserve Bank of Chicago,
says that the vaults of the Federal Re
serve Bank and all other departments
will be open for inspection to all bank
ers during the convention.
The Federal Reserve vaults are re
ported to be the largest bank vaults in
the world. Bankers will be interested
in this.

Northwestern Banker Advertising Pays

The Old Way
Squeezing
Out the
Chautauqua
Guarantee
H ow often have you said, “ N ever a g a in ?”
H ow often have you been told that it was the only pos
sible w a y ; that a Chautauqua could not operate without the
guarantee?
BUT IT CAN.

W E ARE DOING IT.

W e have a proposition for your town for next year.
Write for our plan.

Write for references.

THE TRAVERS CH AU TAU Q UA
5th Floor Liberty Bldg.

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Federal Reserve Bank of St. Louis

DES MOINES, IO W A

Vigilantes Issue Challenge
The Marshall County (Iowa) Vigi
lantes held a target meet on the Mel
bourne Rifle Range Wednesday afternoon
August 13th. Thirty vigilantes were in
attendance besides a number of specta
tors. A great deal of interest was mani
fested when announcement was made
that the five high men of this meet would
be the members of the county team to
compete with other counties. The win
ners were E. R. Dewey of Rhodes, 1st;
Ernest Lollar of Melbourne, 2d; O. A.
Sweet of State Center, 3d; J. A. Diggins of Melbourne, 4th, and L. H. Smeltzer of Melbourne, 5th. This was in the
rifle entry. In the revolver meet Dewey
also won first and Lollar also won second
with F. C. Ward of Laurel third. Mr.
Dewey won second place at the state
shoot last fall held at Fort Des Moines.
At the meeting there were eleven
towns represented and a number of vig
ilantes were present that did not com
pete. They were very much taken up
with the work and it is certain that more
will enter at the next meeting which will
be held the latter part of September to
decide who will be the two high men for
the state meeting which will again be
held in Des Moines.
These men would like to challenge
some of the adjoining counties.

Hold Annual Picnic
One hundred and fifty folks took part
in the annual picnic of directors, officers
and employes of the American Commer
cial Savings Bank of Davenport, Iowa,
held recently at the Springbrook Country

THE

September, 1924

NORTHWESTERN

101

BANKER

T h e D o u b le V alu e
of check-insurance
—

a subject

o f considerable importance to
every progressive banker

HE big subject of building and bettering bank'

ing-business will dominate your convention.

A s a potential business-builder, check-insurance is a
very powerful ally.

ethical part of bank-service which powerfully ap
peals to the public— actually helps to hold present
accounts, to get new ones.
These checks are made of the world’s safest check-

For the truth is that check-insurance has distinct,
double value in the broadening of any bank’s service

paper, and are protected by The W m . J. Burns Inter
national Detective Agency, Inc.— to deter the crook.

— the building o f any bank’s

Then they automatically insure
bank and each depositor — for
$ 1,000 — against loss through
raised checks. This insurance is
issued by the Hartford Accident
and Indemnity Company — one
of America’s strongest, with more

business.
First, there is a definite, proved
need for check-insurance. It is
the only p ositiv e p r o tec tio n — fo r
bank and depositors—against the
check raiser. You, a banker, know
how serious this menace is.

than twenty million dollars in
assets, and a long record for
prompt payment of all just claims.

Mechanical and chemical de
vices are good as far as they go.
But they are not always available
when your depositor needs them. And, sooner or
later, the master-crook may find a way to beat them.
Despite these facts, insurance p r o te c ts ! And it is the
only thing that does.

Each month they are nationally advertised— to
millions of people.
And we furnish a powerful, valuable program of
advertising and sales-helps to the bank using them.
Thousands of banks, all over the coun
try, have found this a tremendously suc
cessful ' way to build business — w ith ou t

A great business
building force

ex tra exp en se or effort!

The bank furnishing Super-Safety IN
SURED Checks has the full, secondary
value of check-insurance. A tangible,

Ask us now for full information. In it
you will find much food for constructive
thinking.

T H E B A N K E R S SU P P LY C O M P A N Y
W o r l d ’ s la r g e st m a n u f a c t u r e r s o f b a n k c h e c k s

New York

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Federal Reserve Bank of St. Louis

Chicago

San Francisco

Atlanta

Dallas

Denver

T li E

102

Club. Gaines, contests and boating were
the afternoon diversions with a picnic
supper and a dance given for the eve
ning’s entertainment.

N O 11 T H W E S T E R N

BA N K E R

Rapids; A. M. Henderson, electee; M.
W . Ellis, Charles City; C. T. Cole, Jr.,
Des Moines; S. A. Knapp, Ames; Gus
tav Steuben, Davenport; H. B. Allfree,
Newton; C. E. Beman, Oskaloosa.

married men won by one score, but for
mal complaint was lodged by the single
men since the umpire was also married.
All reported a day of fun and frolic.

First National Holds Picnic

Owing to the strenuous objections
voiced by Y . D. Button, cashier of the
Citizens Bank at Hospers, Iowa, Edward
Grieser, assistant cashier of the above
mentioned bank has elected to stay with
the Citizens Bank. At present he is away
on a wedding trip, having married Miss
Ethel Heiden, of Sheldon. They will
cover Minneapolis and other northern
points and will be at home in Hospers
September 1st.

Hospers Banker Married

Plan Membership Drive
The Iowa A. B. A. officers recently
held a conference to build up the mem
bership of the A. B. A. in Iowa. These
officers include the following:
Emil
Webbies, Burlington, retiring vice presi
dent; I. O. Hasbrouck, Des Moines, vice
president. Executive eouncilmen, T. R.
Watts, Grand Junction; L. A. Andrew,
Ottumwa; J. H. McCord, Spencer; E. W .
Miller, Waterloo; E. H. Furrow, Cedar

Almost one hundred were on hand at
the annual picnic for the employes, offi
cers and families of the First National
Bank of Sioux City, Iowa, the picnic be
ing held at Gateway Beach, Crystal Lake.
A program of aquatic stunts was ar
ranged and a feature of the afternoon’s
fun was a baseball game between the
married men and the single men. The

Just o f f the Press. Send
f o r it today — F R E E

Conclusive Proof

—

In Actual Figures
T h isb o o k has been published in the beliefthat m ost think
ing investors are guided by actual figures rather than gen
eral statements. It w ill appeal on ly to investors dem and
ing concrete evidence o f a successful record for investment.
In this b o o k are set forth the names o f hundreds o f first
m ortgage b o n d issues, their exact street addresses, total
am ount o f each issue, appraised valuations o f the p rop
erties, am ount o f the bonds already paid off, and the bal
ance o f the issues n o w running to maturity. Y o u can
see for yourself the unusually large percentage o f issues
w h ich have already been paid in full or redeem ed at
substantial prem ium s.
T here is n o obligation on your part in sending for this
b o o k —it w ill be sent to you prom ptly and w ithout cost.
Every dollar o f principal and interest that has be
com e due on First M ortgage Building B onds sold
by this Com pany has been paid to every investor.
W rite, ph on e or call fo r booklet N B 3 3 4

American Bond &M ortgage Co.
IN C O R PO RA TED

C ap ital and Surplus O v er $ 5 ,0 0 0 ,0 0 0

I O W A O F F IC E S :3“ .™” «

A m e r ic a n T r u s t B ld g .
C e d a r R a p id s

New York Boston Detroit Syracuse Cleveland

Chicago Grand Rapids Rockford Philadelphia

A N

L~D

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Federal Reserve Bank of St. Louis

September, 1924

R E S P O N S I B L E

E q u ita b le L ife B ld g .
D e s M o in e s

H O U S E

Guthrie County News Items
By J. C. Chamberlin, Bayard, Iowa
Guy E. Heater, cashier Farmers State
Bank, Yale, is stepping highly and wearihg a broad smile. Inquiry brought out
the information that a little Miss Heater,
weight eight and one-half pounds re
cently arrived to call him papa.
H.
L. Moore, president Guthrie County
Naional Bank, and president Guthrie
County Bankers Association, spent an
August vacation in South Dakota, accom
panied by Mrs. Moore. Mr. and Mrs.
Moore also took in the Republican Na
tional Convention where Mrs. Moore
acted as an alternate delegate.
The Rippey band is gradually recover
ing from the wallop they received when
Walter Roberts affiliated himself with
the Des Moines National Bank. In Rip
pey Walter used to slide a wicked trom
bone. Charles G. Dawes is not the only
musical banker on this continent.
The Guthrie County Bankers Picnic
scheduled for August 6th, ran true to
form and brought a big rain. No visitors
reached Panora where the picnic was
held. A healthy delegation from Casey,
headed by Lincoln Rutt, braved 13 miles
of Iowa famous mud roads, but gave up
the struggle at Guthrie Center, where
the bankers took pity on them and staged
a splendid indoor picnic in a church
basement.

Calhoun County Bankers Meet
The annual Calhoun County Bankers
Association picnic was held at Twin
Lakes, Iowa, on Wednesday, August
20th, an ideal day for the occasion.
About 125 were in attendance and en
joyed a picnic dinner at the noon hour.
Horseshoe pitching games and a base
ball game resulting in a 3 to 2 win for
the north one-half of the county vs.
south one-half followed.
The regular
vigilance committee shoot, in which 15
or 20 participated, was a main feature
of the afternoon program. Devolter, of
Pomeroy, Scroggins, of Lake City, and
Moore, of Rockwell City, were the high
men and received the first, second and
third prizes, respectively, in the shoot.

September, 1924

THE

NOR T HWE STERN

BA N K E R

103

Resigns at Greene
C. W . Soesbe has resigned as president
of the Merchants National Bank of
Greene, Iowa, and has disposed of a block
of his stock in that institution to George
Carney who became president.
Wm.
Meyne, a director, becomes vice president
and A. H. Nolterieke retains the cashiership.

New Building Ready Soon
The Union-Davenport Trust and Sav
ings Bank, of Davenport, Iowa, will move
into its neiv quarters at Third and Brady
streets, October 1st, according to pres
ent arrangements. General office build
ings will be ready a month earlier.
A distinctive feature of the new build
ing will be an ornamental canopy at the
main entrance extending over the side
walk so that patrons may drive up in
rainy weather and enter the bank with
out first dashing through the rain across
the sidewalk.

Cupid Wins at Oskaloosa
Miss Annabelle Paine, for some time
connected with the Farmers National
Bank of Oskaloosa, Iowa, was recently
married to William M. Gordon, of Oska
loosa. Mr. Gordon is connected with the
Green Candy Company. They will make
their home in Oskaloosa.

Clayton County Bankers Meet
.

The Clayton County Bankers held their
annual meeting and picnic recently at
the Elkader fair grounds, with eighteen
banks represented. The Elkader contin
gent furnished music for the day. The
following officers are in charge of the
Clayton County Association: President,
J. E. Maley, Elkader; vice president, H.
T. Orr; secretary, Harold J. Kriebs,
Elkport; treasurer, J. W. Forward.

CAPITAL AND SURPLUS OVER $1,000,000.00
Established 1874

A liv e
A lert
and

A ctive
Service to Iowa
banks and bank
ers, our motto.
OFFICERS

CHARLES E. PERKINS,
Chairman of Board
E. W EBBLES, President
L. C. W ALLBRIDGE, Vice Pres.
J. G. W ALD SCHMIDT, Vice Pres.
W. C. KURRLE, Vice Pres.
C. T. SIMMONS, Vice Pres.
R. L. BUNCE, Cashier
ELMER RAUENBUEHLER,
Assistant Cashier
L. M. WILSON, Ass’t Cashier
L. T. PANTHER, Ass’t Cashier
F. J. NORTON, Ass’t Cashier
R A Y HUMPHREY,
Manager Bond Dept.
T. H. WILSON, Auditor
DIRECTORS

irtj ¡M
II Puts Jo y in Living :|
REG. U.S. PAT. OFF.

assembles under on e banner the
greatest masters o f the day.
It is n o t b u ilt t o im ita te. It is
essentially different! It is unlike
anything that has gone before.

“ Daring !”
is the w ay ou r m ost ardent sup
porters describe it.
For exam ple, it was sixteen m onths
in the building and the highest
paid cop y -w riter in the w orld is
the principal contributor.
In form yourself com pletely about
C H E E R b e fo r e y o u b u y any
Savings P rom otion Plan.

P. M . REED
111 West Washington Street, Chicago

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Federal Reserve Bank of St. Louis

JOHN BLAUL, President John Blaul’s Sons Co.
LOUIS BLAUL, Retired
W ILLIAM BONGERT, Treasurer Dehner Cigar Co.
WILLIAM CARSON, President Boise Payette Lumber Co.
H. W. CHITTENDEN, President Chittenden & Eastman Co.
W. N. CHURCHILL, President Churchill Drug Co.
E. P. EASTMAN, Vice President Chittenden & Eastman Co.
W. F. GILMAN, Secretary Burlington Lumber Co.
G.
G. HIGBEE, President Murray Iron Works
C. S. LEOPOLD, President Leopold Desk Co.
ROBERT O. LORD, Vice Pres. Harris Trust & Savings
Bank, Chicago
C. H. MOHLAND, Attorney
ROBERT MOIR, Capitalist
C. E. PERKINS, Trustee
E. S. PHELPS, Insurance
H. S. RAND, President Rand Lumber Co.
HENRY RITTER, Retired
J. J. SEERLEY, Attorney
E. WEBBLES, President

FIRSTraKr*fmlBANK
MEMBER FEDERAL RESERVE SYSTEM BURLINGTON IA.

THE

104

Is Premier Hog Raiser.
W . F. Moore, banker and lawyer at
Guthrie Center, Iowa, takes much pride
in a herd of pure-bred Yorkshire hogs
which are maintained on his farm under
a stock partnership lease. One of the
finest sows in the herd farrowed and
raised a litter of thirteen. When the
litter was 100 days old they weighed
slightly over 1,400 pounds. This litter
is being groomed for honors at the State
Fair. In the next pen a yearling daugh
ter of the sow mentioned above is suc
cessfully raising a litter of 13 pigs. It
was evident that this particular family
of Yorkshires is not superstitious. A
representative of the Cudahy Packing
Company recently visited the Moore
farm and purchased several males to be
used by the company in Wisconsin in an
effort to interest farmers in bacon-type
hogs. On account of their bacon qual
ities, pure-bred Yorkshires command a

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

BA N K ER

premium of 75 cents per hundredweight
when consigned to the company in car
load lots.

Has Fiftieth Anniversary
The State National Bank, of Iowa
Falls, Iowa, recently celebrated its fif
tieth or golden anniversary. This is one
of the pioneer institutions of northern
Iowa, and was organized in 1874, with an
original Capitalization of $50,000. It
was first organized as a state bank and
was not changed to a national bank until
1915. The bank now has capital and
surplus of $50,000 and has deposits of
$800,000. Officers of the bank are: F. D.
Peet, president; C. H. Cross, vice presi
dent; E. E. Benedict, cashier.
A fault which humbles a man is of
more use to him than a good action
which puffs him up with pride.— Thomas
Wilson.

lili

BANK EQUIPMENT

September, 1924

First National, Davenport
The First National Bank of Daven
port, Iowa, had resources and liabilities
of over five million dollars, according to
a recent statement of condition. De
posits were in excess of four million.
I. J. Green, cashier of the First Na
tional, defies any banker in the United
States to show a lower overdraft record
than that of the First National. Their
last statement shows but 49 cents over
draft, and their statement for December,
1923, showed only $7.10.

Returns from Europe
Ralph E. Miller, assistant cashier of
the Leavitt & Johnson National Bank
of Waterloo, Iowa, returned recently
from several weeks spent in touring
Europe. While in the old countries, Mr.
Miller took in the Olympic games at
Paris and took an active part in cheer
ing Uncle Sam’s scantily clad repre
sentatives on to victory in field and
track.

A Tourist Camp Innovation
The town of Charles City, Iowa, is do
ing a unique thing for the visitors who
share in the comforts of her tourist
camps, as one of the Northwestern
Banker representatives learned on a re
cent visit to that city. He was pre
sented by E. F. Barger, secretary of the
Farmers and Merchants Savings Bank
with an attractive bulletin telling about
the wonders and beauties of Charles
City and was met at the entrance to the
park by Mr. Barger’s fraternal hand
shake. It seems that a committee of
several business men is present every
evening, welcoming the tourists and mak
ing them feel at home. The movement
is sponsored by the Charles City Rotary
Club.

Leon Banker Dead
E. G. Monroe, president of the Ex
change National Bank of Leon, Iowa, died
recently at his home in that city after an
illness of several weeks. He had been in
terested in the Exchange National Bank
since 1910, at which time he purchased an
interest and became cashier of the bank.
Retiring as cashier a few years ago, he
was succeeded by Carl Monroe and be
came president. He was 59 years of age
at his death.
At a meeting of the board of directors
of the bank, O. E. Hull, vice president,
was elected president filling the position
left vacant by Mr. Monroe’s death. John
F. Garber was elected vice president and
Ronald Monroe was elected a director.

A M E R IC A N FIXTURE CO.
KANSAS CITY, MO.

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIM

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Federal Reserve Bank of St. Louis

Recovering from Operation
Dan Eppelsheimer, cashier of the Citi
zens State Bank of Griswold, Iowa, was
recently operated on for appendicitis. He
is making a nice recovery.

September, 1924

THE

NORTHWESTERN

BANKER

Page County State
At a meeting of the board of directors
of the Page County State Bank of Clarinda, Iowa, L. D. Garton, of Villisca,
was elected assistant cashier and a mem
ber of the board of directors. He has
already moved from Villisca.to make his
home in Clarinda. Mr. Garton was with
the First National Bank, Villisca, Iowa,
since March 1, 1917, with the exception
of one year in the finance department,
United States army.

Marshalltown State Bank
C. C. Trine, president of the Marshall
town State Bank of Marshalltown, Iowa,
is a member of the newly created zoning
commission at Marshalltown.
Harry W . Jennings, cashier of the
Marshalltown State Bank of Marshall
town, Iowa, is completing a five weeks’
camping and sight-seeing trip through
the Yellowstone, Rocky Mountain Na
tional and other western parks. A local
party of ten people in three autos com
prise the party.

1895

1924

lowerof Strength
Bach of YourBusiness

Addresses Kiwanis Club
C. Ed Beman, vice president of the
Mahaska County State Bank of Oskaloosa, and an active worker in Iowa
Bankers Association affairs, was the
principal speaker before a recent meet
ing of the Oskaloosa Kiwanis Club.

Dike Banker Dead
Jeppe J. Schultz, a pioneer banker of
Dike, Iowa, died at the Presbyterian
Hospital, Waterloo, on August 12th,
after a brief illness of two days. Mr.
Schultz was cashier of the Farmers Sav
ings Bank, which position he held since
its organization in 1909. Prior to his
connection with the Farmers Savings
Bank he was cashier of the First Na
tional Bank of Dike. Mr. Schultz was
a veteran banker and widely known
among bank circles. At the time of his
death he was 46 years of age.

New Bank at Manning
The Manning Trust and Savings Bank
is the name of the new banking institu
tion recently opened for business at Man
ning, Iowa. F. C. Henningson, of Iowa
Falls, is president and H. E. Meyers,
cashier.
The following named persons have
qualified as the first board of directors :
H. W . Meyer, M. F. Enenbach, F. C. Hen
ningson, Geo. P. Scelldorf, Gus Vinke,
J. J. Sinn and Peter Rix.
Jay-walking is a short cut to the hos
pital.
An elephant lives a hundred years, but
he’s careful all the time.
Better belated than mutilated.
More headwork at crossings— less sur
gical work at hospitals.— New York
safety week slogans.

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

N HANDLING any bank
ing matter that may arise,
the “ Central State’ ’ is pre
I
pared to place back o f its custom
ers the full facilities o f the bank
and the experience and council
of its staff.
W e offer you not only the
working equipment of an institu
tion that does business o f nation
wide dimensions, but also the per
sonal interest and cooperation of
an organization whose constant
effort is to obtain the best results
for its customers.

<C
CENTRAL STATE B A N K
of

D es M o in e s

Btanking.
i
M * mb « p

Trusts
Investine
^
— & In
vestm en ts
Safe Deposit Vaults

Federal

i? e * g

r y

$ V •( 0

THE

106

NORTHWESTERN

BANKER

September, 1924

Changes at Atalissa

CuB®
A

urrency

BANK SERVICE MESSAGE ^

BANK SERVICE MESSAGE

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r ts

C R A D D IC K S E R V IC E

A change in officers and directors of
the Atalissa, Iowa, Savings Bank took
effect recently. F. Nachbaur, former
cashier and president of the Muscatine
County Bankers Association of last year,
resigned and has gone to California to
make his home. This position was filled
by the former assistant cashier, R. A.
Daedlow. B. J. Schafnit was elected
assistant cashier. Chas. H. Lamb, for
mer vice president, resigned and this po
sition was filled by N. Spilger, former
director. Chas. C. Brown was chosen as
director to fill vacancy caused by Mr.
Spilger being elected vice president. The
following is the personnel of this bank:
Geo. W . Black president; N. Spilger,
vice president; L. A. Schmidt, director;
F. C. Stortz, director; Chas. C. Brown,
director; Geo. E. Coriell, director; Sam
T. Evans, director; R. A. Daedlow,
cashier; B. J. Schafnit, assistant cashier.

716 F O U R T H A V E N U E S O U T H

Plan Greater Short Course

M IN N E A P O L IS

Advertise in the Northwestern Banker

Points o f Interest
in T^ew T or\ City

—A t

E. H. Lauer, head of the Extension
Division of the State University of Iowa,
was in Des Moines recently conferring
with the officers of the Iowa Bankers As
sociation on plans to develop the Bank
ers Short Course, which is held each year
under the joint auspices of the Iowa
State University and the Iowa Bankers
Association.

the N e w York E n d
We offer you correspon
dent banking facilities of
wide range, coupled with
strength and flexibility.

TH E
The W oolw orth Building
A monument to the power of
the small coin. This is the tallest
office building in the world and
is of much interest to visitors.

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

N E W Y O R K C IT Y
C a p ita l, Surplus an d U n d iv id ed P rofits o v e r $ 1 1 ,0 0 0 ,0 0 0

THE

September, 1924

OFFICERS
LO UI S C. K U R T Z

Chairman of the Board
JOHN

NORTHWESTERN

and a sincere desire to cooperate
helpfully are most essential factors
in the service a bank is able to
extend to its correspondents.

HO GA N

Vice President

H. R. H O W E L L

Vice President

H. E. R U M S E Y

Vice President

H U G L IN

Cashier

G E O R G E C. W I L L I A M S

Assistant Vice President

H E R B E R T L. HO RTO N

The Des Moines National is ade
quately equipped in all these im
portant details to handle the busi
ness of banks and bankers in this
section of the Middle West.

Assistant Vice President

CLARENCE

Assistant Vice President
Assistant Vice President
R. H. C O L L IN S

Assistant Cashier
F. B U C K L E Y

Assistant Cashier

GEORGE

D. T H O M P S O N

Assistant Cashier

TAMLIN

H. C. A D A M S

Fiscal Loan Agent for Iowa
The Travelers Insurance Co.

S. H O L L A N D

Mar. Bond Department

BOEKENHOFF

President, Boekenhoff Cafe Co.
H. B. H A W L E Y

Pres. Great Western Insurance Co.
J O HN

H. HO GA N

President

H. R. H O W E L L

Willcox. Howell. Hopkins & Mulock
A N D R E W J.

H U G L IN

Cashier

LO UI S C. K U R T Z

Pres. L. H. Kurtz Co.
W. J. M U R R A Y

Vice President

A. D I E H L

W A L T E R J. R O B E R T S

ED W I N

DIRECTORS
H. J.

President

W. J. M U R R A Y

A N D R E W J.

107

BANKER

We invite new business on our rec
ord of nearly half a century of
national banking experience.

C H A S . A.

RA WS ON

Pres. Iowa Pipe and Tile Co.
RALPH

E. R O L L IN S

Vice Pres.-Treas. Rollins Hosiery Mills
H. E. R U M S E Y

Penn Mutual Life Ins. Co.
W. W. S E A R S

Pres. Sears Automobile Co.
FRED

W. W E I T Z

Chas. Weitz Sons

N. M. W IL C H I N S K I

Pres. Younker Brothers, Inc.

Des Moines National Bank
Sixih &CeJa/rt

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Federal Reserve Bank of St. Louis

Sfaeefe

C a p ita / $

108

THE

NORTHWESTERN

BANKER

September, 1924

INDEX T O ADVERTISERS
A

Page
Allyn, A. C........ ........................................
78
American Bond & Mortgage C o.........102
American Commerical & Savings
Bank ......................................................... 31
American Fixture Co................
94
American National Bank, St. P a u l.. 83
Automatic Recording Safe Co............. 68

Page
First National Bank, O m aha............
2
First National Bank, Sioux C i t y ..2, 33
First National Bank, Waterloo . . . . 90
First Wisconsin National B a n k . . . . 91
Fisher Co................................................... 35
Foreman National Bank.................
6
Forgan, Gray Co...................................... 51

B
Bank of America..................................... 106
Bankers Supply Co.................................. 101
Bankers Trust Co..................
89
Berkowitz Envelope Co......................
71
Blackhawk National Bank, W ater
loo ............................................................. 94
Brokaw & Co. . . ......................................... 54
C

Capitol Hill Monument Co................. 40
Cedar Rapids Life Insurance C o . . . . 89
Central State Bank. ........................... .105
Central Trust Co. of Illinois. . . . . . . . 80
Chapman, P. W . .. . ................................... 53
Chase National Bank.............................. 79
Chemical National B ank........ .............. 47
Chicago Trust Co...................................... 34
Citizens Trust & Savings Bank,
Aberdeen ................................................. 75
City National Bank, Clinton............... . 95
Consolidated Nat’l Bank, Dubuque.. 88
Continental & Commercial National
Banks ....................................................... 84
Craddick Service.........36, 50, 100 and 106

B
Des Moines Duplicating Co............... 47
Des Moines Life & Annuity C o......... 58
Des Moines National Bank..................107
Des Moines Rubber Stamp Wo r k s . . . 88
Drovers National B ank....................... 86

E
Eppley Hotels Co . ...............
Erickson & C o .................
Ernst & Ernst. . . .... ..................................

70
43
82

F
Farmers Bond & Mortgage Co. . . . . . 70
Federal Bank & Trust Co................... 99
Federal Surety Co .................................. 61
First Iowa State Trust & Savings
Bank . . . . . . . . .................
103
First
NationalBank, Chicago.......
5
First
NationalBank D a v e n p o r t....
2
First
NationalBank, Dubuque
. . . . 88
First
NationalBank, Duluth......... 83
First National Bank, Mason City. . 9

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Federal Reserve Bank of St. Louis

General Motors Acceptance Corpora
tion ............
76
Girard National B ank............................ 83
Globe & Rutgers...................................... 67
Gordon-Van Tine C o . . . ........................I l l
Great Western Insurance Co............. 66
Guaranty Trust Co.................................. 71
H

Hammond Printing Co..........................
Hancock, John Mut. Life Insurance
Co.................................................................
Hanover National B ank.......................
Holstein Savings Bank.......................
Hyney Emerson Co..................................

80
61
43
92
52

Inter-State Surety Co............................
Iowa Guarantee Mortgage Corpora
tion ............................................................
Iowa Loan & Trust Co........................
Iowa National Bank, Davenport . . .
Iowa National Bank, Des M o in es...
Iowa Lithographing Co.........................
Iowa Mutual Liability Insurance Co.
Iowa National Fire Insurance Co. . . .
Iowa State Traveling Men’s Associa
tion ...........................................................

Page
45
National Park Bank ................
North American National Life In
surance Co............................................... 64
Northern Trust Co....................................
7
Northwestern Life Insurance Co. . . . 63
Northwestern National Life Insur
ance Co......................................................
2

Omaha Life Insurance Co..................... 61
Omaha National Bank .......................... 28
Omaha Printing Co................................... 76
P
Packers National Bank ........................
Peoples Trust Co........................................
Peoples Trust & Savings B ank.........
Policyholders National Life Insur
ance Co. ........................................
Polk, Corley, Wheelock Co...................
Priester, Quail & C u n d y ........................

78
42
94
75

50
96

Rand McNally Co.................................... . 79
Reed, P. M....................................... 46, 86, 103
Ross Gould Co................
84
Royal Union Life Insurance Co. . . 56, 57
S

48
11
94
93
98
60
62
75

K
Koch Bros.................................................... 92

Seaboard National Bank .....................
Security Fire Insurance Co. .............
Security National Bank, Sioux City.
Security State Bank, Keokuk .........
Southern Surety Co..................................
Standard Life Insurance Co.................
Stanley-Henderson Co....................
State Bank, Chicago ............................
State Central Savings Bank .............
Stock Yards National Bank, Chicago
Stock Yards National Bank, Omaha.
Strauss, Robt., Co....................... *...........

4
74
40
92
90
59
70
46
47
8
78
51

Leavitt & Johnson National B an k .. 37
Lincoln National Life Insurance Co.. 63
Live Stock National Bank, Sioux City 34
Lytle Co..........................................................110
McClintock Co. ........................................ 82
Mechanics & Metals National Bank. 74
Medical Life Insurance Co.................... 63
Merchants National Bank, Cedar
Rapids ............
41
Midland Mortgage Co. ......................... 70
Midland National Bank ........................ 80
Mutual Trust Life Insurance Co. . . . 65

Travers Chautauqua ...............................100
True-Webber Co. ..................................... 94

National
National
National
National

Bank of Republic ............... 45
Bank Supply Co....................... 3
City Co........................................ 79
Life Association .................... 60

F
Union Trust Co. ..............................
27
United State Bank, Des Moines . . . . 95
U. S. Check Book Co..................
74
Universal Life Insurance Co.................. 65
V

Valley National Bank .......................... 95
W

W essling Services ..........
Western Advertisers Association . . .
Western Life Insurance Co...................
Where to Buy Page ............................
White Phillips Co. ..................................

97
47
62
72
50

THE

September, 1924

h e

f in a n c ia l

A d v e rtise r s A s s o c ia -

tio n h a s h e ld a ll its

v io u s

pre

c o n v e n tio n s

c o n n e c tio n w i t h th o s e o f
th e A s s o c i a t e d A d v e r t i s in g C l u b s o f th e W o r l d ,
o f w h ic h

it is a d e p a r t

NORTHWEST EKN

BANKER

"On to
Richmond

m en t:. T h i s y e a r th e A s
so c ia te d

C lu b s

m et

L o n d o n , a n d it w a s e s s e n
tia l to h o ld a c o n v e n t io n
in th is c o u n t r y . T h e R i c h
m o n d c o n v e n t io n w il l b e
e x c lu s iv e ly fin a n c ia l,
w ith a p r o g r a m

and ex

h ib it fu l l o f in te r e st a n d
e d u ca tio n a l v a lu e. A real
so u th ern

w e lc o m e

and

th e c o u r te s ie s o f th e c o n
v e n tio n a r e e x te n d e d , n o t
a lo n e

m e m b e r s , b u t to

The Officers and
Directors o f the

F IN A N C IA L
A D V E R TISE R S
A SSO C IA TIO N

a ll b a n k e r s w h o a r e in
te r e ste d

c le a n , c o n

str u ctiv e a n d

p r o fita b le

fin a n c ia l a d v e r tis in g .

i c h m o n d a ffo r d s
- a n id e a l s e ttin g fo r
th is c o n v e n t io n . Its c o n
v e n i e n t l o c a t i o n , its

h is to r ic

b a c k g r o u n d , its

e x t e n d an i n v i t a t i o n
to Bankers—savings, com
mercial, investment, and
trust company officials to
attend the

p r e s e n t-d a y p r o g r e s s ,
its p e r f e c t c lim a t e in th e
e a r ly A u t u m n a n d its f a
c ilitie s f o r h a n d lin g th e
c o n v e n t io n

w ill m a rk a

m ile -s to n e

in f i n a n c i a l

a d v e r ti s in g

h is to r y . T h e

s e s s io n s o f th e c o n v e n t io n
w il l b e h e ld a t th e H o t e l
J e ffe r s o n a n d r e s e r v a tio n s
s h o u ld b e m a d e w i t h th e
h o te l m a n a g e m e n t , s e n d
in g c e n tr a l office a c o p y o f
y o u r lette r .

EIGHTH ANNUAL
CONVENTION AT
R IC H M O N D , VA.
October 14-16, 1924
♦
G O L F (C O L U M B U S D A Y ), O C T . 13

The central office o f the F IN A N C IA L A D V E R T ISE R S A S SO
C IA T IO N is located a t Suite 5 2 2 , 135 W . W a sh in g ton Street,
C h ica go. In qu iries rega rd in g the A sso cia tio n ’ s w ork are invited.

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Federal Reserve Bank of St. Louis

109

110

THE

NORTHWESTERN

BANKER

September, 1924

a t LYTLE Co
7/ie Capital
Bank Building?

Achievement!
“ Hundreds of Iowa
Banks and Bankers
Recommend the
Lytle Company ”

If you are con
templating a
new building or
remodeling we
shall be very
happy to call
and discuss it
with you, with
out obligation.

The Lytle Company’s achieve
ment in the bank building in
dustry has made a continuous
demand for its services from
banks and bankers o f the north
west.
Hundreds of banks in the
northwest have been designed
and built exclusively by the Lytle
Company o f Sioux City.

3 mA # R A V E N , V x cs.
A r c h it e c t » E n£>inop yj^C om p lete Bank » Office Buitd.in.foft *'

i /i o u x City; Iowa

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Federal Reserve Bank of St. Louis

September, 1924

THE

NORTHWESTERN

BANKE R

111

Are Corn Belt Assets
W orth Protecting?
Here is a list of what a bored passenger counted from his Pullman
window while traveling across the Corn Belt last spring, according to
“ Collier’ s W eekly:”
69
61
45
46
49
17

Reapers
M owers
Hay Rakes
Grain Drills
W agons
Farm Engines

7
5
33
7
32
8

Hay Balers
Ditchers
Disk Harrows
Road Making Machines
Tractors
Threshing Outfits

These in a strip a half mile wide and 100 miles long. Assuming an
equal number on the opposite side o f the track, we have 758 pieces of
valuable machinery, whose average cost was $200— a total value of
$151,600 subjected to all the ravages o f winter storms. Figuring depre
ciation at the extremely moderate rate o f 10 per cent, the realization of
the total loss throughout the country due to inadequate housing is stag
gering.
This Loss Can Be Avoided
It is perfectly true that lumber and farm
buildings cost money. But they do not cost
as much as machinery. They do not cost as
much as dead cattle and hogs, perished from
inadequate housing.
They do not cost as
much as grain rotted or sold at a loss be
cause there was no place to store it.
Investment in farm buildings
prices is an investment that pays
not m erely in savings o f stock,
machinery, but in the greater
facility afforded.

at proper
dividends,
grain and
operating

Gordon-Van Tine Buildings— A Guaranteed
Investment
G o r d o n -V a n Ti ne farm buildings are
guaranteed first quality. Their modern, effi

Gordon-VanTine Co.
ESTABLISHED

Bank

Davenport;

Continental

G o r d o n -V a n

C o .,

D a v en p o rt, Io w a .

N a m e __________

Davenport, Iowa
A d d ress

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Federal Reserve Bank of St. Louis

T in e

C a s e S t.

fr e e

books

H om e,

and

Commercial National Bank, Chicago, III.

419 Case Street

Hundreds o f bankers are today making
daily use of our Free Books on Homes, Farm
Buildings and Building Supplies in advising
their clients and studying recent building de
velopments. If you have not already secured
them, we should appreciate sending them to
you. The coupon brings them on request.
Mail it today!

P lea se s e n d m e y o u r
an d B u i l d i n g M a te r ia ls .

Resources Over $1,000,000.00
Any

To your community and your clients they
offer the same opportunity that 48 states and
even far-off Japan are taking advantage of.

419

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cient design has made them the choice of
expert farmers, dairy men and stock men
throughout the country.
Our ready-cut
method, our huge volume, our plan o f selling
direct from the mill to the consumer, and
above all, our never-ending aim to sell at the
lowest price possible, consistent with one
legitimate profit, make Gordon-Van Tine
prices the lowest in the United States.

;________________________

_____________

B arn s

ibh h h h h ih h bh h h h h m h h h h bh bbm m h rí

On and After
September Twenty-Ninth
N Monday, September 29, 1924, the old and honorable
name of The Corn Exchange National Bank will pass
into history and the institution will become an integral part of
the Illinois Merchants Trust Company.
The entire personnel of The Corn Exchange National Bank
will on that date be housed in the newly completed Illinois
Merchants Bank Building, not as a separate organization,
but as members of a greater banking institution, one of the
largest in America.
You and your friends attending the Fiftieth Annual Con
vention of the American Bankers Association in Chicago, on
September 29, 30, October 1 and 2, are cordially invited to
visit us in our new quarters.

C A P I T A L A N D S U R P L U S < F O R T Y -F I V E M I L L I O N D O L L A R S

Illin o is M e r c h a n t s
Tr u s t C o m p a n y
qA

consolidation o f the Illinois TruSl & Savings ‘B ank,
T h e M erchants Loan & TruSt Com pany and
T h e Corn Exchange N ational Bank

SA LLE,

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

J A C K S O N ,

C L A R K

A N D

Q U I N C Y

S T R E E T S

CHICAGO

Full text of The Northwestern Banker : September 1924, Twenty-Ninth Year, Number 445

FRASER