Full text of The Northwestern Banker : September 1933, 38th Year, Number 554

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ESTERN
ANKER
DES MOINES
S E PTEM BER , 1933

¡s i p

E. R. H E A T O N
President
South D akota Bankers A ssocia tion
V ic e President
F irst D akota N ational Bank
& T rust Co. o f Yankton

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Federal Reserve Bank of St. Louis

A . B . A . Convention Meets in Chicago
Page 7

Three Essentials
O f the New Bank Salesmanship
Page 8

Acm e Interest Tables
Pages 9, 11, 13, 15

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Federal Reserve Bank of St. Louis

C/y Cedar Hap ids Dank
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S e rv ic in g

ll a iso
a ii

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OUR GOAL
R goal is to render our correspondents a service so
O Usatisfactory
that once tried, it will be permanently
required.
Unquestionably that is the reason our relationship with
so many country banks has extended over a long period of
years. We solicit the accounts of those who seek such a
service.

MERCHANTS
N A T IO N A L B A N K
OFFICER S
President, James E. Hamilton; Vice Presidents, H. N. Boyson, S. E.
Coquillette, Van Vechten Shaffer, Roy C. Folsom, Marvin R. Selden; Vice
President and Cashier, Mark J. Myers; Vice President and Trust Officer,
George F. Miller; Assistant Cashiers, Fred W . Smith, R. W . Manatt, L. W .
Broulik, Peter Bailey, R. D. Brown, and O. A. Kearney.

C edar R apids

Iow a

N o rth w e ste rn Banker
Des Moines

The Oldest Financial Journal West of the Mississippi
SEPTEMBER, 1933

Number 554

TH IS

38th Year

ISSUE
P age

Across the Desk from the Publisher...........................................
Frontispiece,“ His Inspiration” ................. Fletcher G. Ransom
A. B. A. Convention In Chicago.................................................
The ThreeEssentials of the New Bank Salesmanship............
.....................................................................Granville B. Jacobs
Acme Interest Tables................. Marion D. Woods 9, 11, 13,
Three Reasons Why Banks Should Advertise N ow ...................
............................................................................. H. B. Craddick
Results of Recent State Branch Banking Legislation...............
“ We Have Just Begun To F IG H T !” ........................F. E. Boyd
News and V iew s................................................. Clifford De Buy
Banks— And the Public............................................. H. A. Lyon
Present-Day Changes in the Banker’s Investment Program. .
.....................................................................Winfield C. Jackley
A New Service That Bankers Appreciate..................................
A “ One-Man” A. B. A ...................................... Harry Wilkinson
South Dakota N ew s................................................................
Nebraska Bank N ew s............................................................
Minnesota Bank N ew s................... ........................................
North Dakota Bank N ew s................................ ...................
Iowa Bank N ew s....................................................................

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

R. W . M O O R H E A D
A ssocia te P ublisher

F. S. L E W I S
S pecial R epresentative
218 E ssex B uildin g
M inn eapolis, Minn.
T elephone, B rid gep ort 2523

F R A N K P. S Y M S
V ic e President
19 W e st 44th Street
Suite 1608
N ew Y ork

Member, Audit Bureau of Circulations

H. H A Y N E S
E d itor

J. A. S A R A Z E N
C irculation M anager

Member,
Financial Advertisers Association

Northwestern Banker, published monthly by the DePuy Publishing Company, Inc., at 555 7th Street, Des Moines, Iowa.
Subscription, 50c per copy, $3.00 per year. Entered as second-class matter at the Des Moines post office. Copyright, 1933.

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Northwestern Banker

September 1933

General Hugh S. John
son, Administrator for In
dustrial Control, says that
commercial banking is not
”
functioning in this coun
try and that bankers are suffering from “ hold-over
tim idity” of a year or two ago.

A r e Bankers
Suffering from
“Hold-over
Timidity

In stating his position on this subject
Johnson says:

General

‘ ‘ I do not believe that the figures on the advance
of commercial credits indicate a loosening up on
the part of the banks.
Ordinarily bankers take care of seasonal needs
of industry. We have had a steady downward eco
nomic index and most of the bankers who have
taken the risks of future commitments have gotten
pretty badly stung. I do not believe that anybody
can force credits since they are fostered by faith
and confidence in the future. You simply cannot
get extensions of credit by fiat.
The trouble is a lack of confidence creating a
downward spiral. The whole subject of this cam
paign is to create an upward spiral and carry bank
ing up with it. I have been getting reports to see
if there is an expansion of credit behind trade, and
I should say there is not.”
When you consider that the only real test of
financial institutions in the last year or so has been
their liquidity, it is not surprising that bankers
are not loaning out their money as rapidly as they
once did, or perhaps as rapidly as conditions now
warrant.
I know of many banks which are 75%, 80% and
even 85% or 90% liquid today simply because of
the experiences of the last year or so, and the heavy
demands which were made upon them by their
depositors.
I believe that as fast as business regains confi
dence, it will likewise be reflected in the banking
business with an expansion of credit for all sound
business ventures.
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September 1933

That business is actually improving is indicated
by many reports which are coming in from various
lines of industry. One very hopeful indication is
the fact that Dunn and Bradstreets reports that
there were fewer failures last mouth than at any
time for seven years.
Also increased business volume and higher prices
both tend to increase the demand for commercial
bank loans so 1 believe while General Johnson’s
criticism may be correct at the moment, I am con
fident that the banking institutions of the country
will do their part in helping business climb back
to the plateau of prosperity where it once was.

In these times when we
are talking about managing
our currency, regulating our
prices, and getting industry
to sign the NRA codes, I was very much interested
in reading an article in the September Forum, by
Charles D. ITallinan, which describes Sweden’s ex
periment in managing her currency, and the very
successful results which she has had.
At the London Economic Conference, the Swed
ish delegates wTere much in demand to explain how
their system actually worked.
The real credit for the idea is given to Ivar
Rooth, Governor of the Swedish Riksbank, and this
is how he does i t :
“ By using the ordinary technique of his job
but using it with an eye to the price level. He had
one new gadget, evolved for him by the bank’s
statistician— a sensitive weekly index of ‘ Swedish
buying power. ’ It covered all classes, and the data
were drawn from all parts of the country. This
index showed the Governor of the Riksbank the
first sign of weakness, the first sign of shrinking
buying power, and like a man in the switch tower,
he pulled this lever or that, and watched the effect.
All in the day’s work. Once he intervened and
asked the commercial banks to go slow in advanc-

How Sweden
Manages Her
Currency

ing money to customers for the import of luxuries
— it was balling things up. Another time he de
cided that the competition between the commercial
banks and the savings banks, for savings deposits,
was disturbing the monetary machine and he asked
them to get together. He watched the foreign
exchange market closely and intervened from time
to time, not to ‘ defend’ the international ‘ prestige’
of the krona, but to keep the fluctuations of that
symbol from disturbing Swedish prices.”
To prove whether this managed currency system
has worked satisfactorily in Sweden, if we take the
physical output of goods in 1928 as equal to 100,
the production of goods in 1932 declined only 4 per
cent in Sweden, 11 per cent in Great Britain, and
43 per cent in the United States for that same year.
Whether or not the Federal Reserve Banks could
operate and manage currency in this country, is a
debatable question, but at least here is one small
country that through all of the chaos of the last
few years has presented a bright and shining ex
ample to the rest of the nations on this important
question— and don’t forget that Ivar Kreuger gave
Sweden a smashing blow last year— which stunned
but did not upset them.

I have read several ar
Should. Banks ticles
recently by promi
Be Examined
nent bankers and public
hy Independent accountants w h o argue
Accountants? that many of our banking
difficulties have come from poor supervision on the
part of the national and state banking departments,
and that improved supervision is one of the main
requisites for the future success of our banking
system.
I was talking with the vice president of a cor
poration which owns a large number of banks, and
he said that the examination which their own audi
tors made, of their various institutions, was much
more rigid and careful than that made by the na
tional examiners, and the reason was that their
holding company had its own money invested in
these banks, and they wanted to know the actual
condition, and were not trying to cover up any
thing.
It is true, of course, that proper bank supervision
by state and national authorities should do away
with poor banking and eliminate losses, but such
has not always been the case in the past.
Large industrial corporations which have their
own accounting department still employ outside

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auditors and public accountants to go over their
books and check against the corporation’s own book
keeping department.
There are some banking authorities who are now
recommending this practice in the banking business.
The captain of a ship uses his compass to guide
him in his course, but if his compass should give
him inaccurate information he would be lost or
shipwrecked. Likewise, the proper audit of a bank’s
books is the compass by which the officers and direc
tors must guide the business affairs of their insti
tution, but that compass must be accurate and must
give to them the proper information if they are to
keep the bank in the channel of success. Conse
quently, I am convinced that more careful audits
and more thorough examinations must come from
both the state and national banking departments,
and these also in my opinion should be supple
mented by regular audits by public accountants at
definite intervals throughout the year.

The
__ _ _ „ j c

In spite of all the rules
and regulations and all the

-f V °
a
1 laws of the lawmakers, I am
Of
O U T B a n k . convjncec[ that the time will
never come when banking is simply a mechanical,
automatic, drop-your-money-in-the-slot-machine af
fair.
Back of every transaction is a personal element,
a personal contact with tellers, and officers, and the
personality of every bank is reflected by the atti
tude of these individuals with the depositors and
prospective customers.
As one banker said recently, ‘ ‘ All banks are
organized for the same purpose and most of them
operate under the same laws, but the personality
of the bank is to its advantage or disadvantage. The
average man trades with a bank because he thinks
that is the ideal place for his account. It is quite
a compliment to a bank when some one comes in
and opens an account, and if we mishandle the cus
tomer in any way we have missed a chance to make
a real friend.”
And as the banking business progresses and im
proves under the “ New Deal,” it will still be
dependent upon the personal element as to whether
or not the business of any particular institution
moves forward or backward. Therefore, the “ per
sonality of your bank” is of vital concern to you,
and should always be kept in mind as one of your
most valuable assets.

Northwestern Banker

September Í933

“ H IS IN S P IR A T IO N ”
Reproduced in full color from the original oil p ain tin g by Fletcher C. Ransom . The artist here tells a> story
to show that poverty and hardship is no bar to success in life. The boy is immersed in his studies. From
the Gettysburg Address he gets an inspiration which will lead him upward and onward.

Northwestern Banker

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C opyright, by the Gerlach-Barklow Co., Joliet, Illinois.

September 1933

A . B. A . Convention
Chicago, September 4-7
M em bers o f the A m e ric a n Bankers A sso cia tio n, W ith
H e a d q u a rte rs a t the Stevens H o te l, to Listen to
W a s h in g to n O ffic ia ls

F R A N C IS H. S IS S O N
President
A m erican Bankers A ssocia tion

EADING figures among the National
Administration’s financial and re
construction officials will be drawn
together with the nation’s bankers in
discussions o f the country’s outstanding
problems o f recovery and the part o f
banking in it at the annual convention
o f the American Bankers Association, to
be held in Chicago, September 4th to 7th,
it is disclosed in the program made public
by Francis Ii. Sisson, president of the
association.
A t the opening general session, Tues
day, September 5th, following Mr. Sis
son’s presidential address, which will pre
sent the case for the banks in the politi
cal and financial controversies surround
ing them the last four years, Eugene R.
Black, Governor o f the Federal Reserve
Board, Washington, will deliver an ad
dress under the title “ Forward.”
Two other Washington officials will
occupy the program at the closing regu
lar general session, Thursday, September
7th, when Comptroller o f the Currency
F. T. O’Connor, who has supervision o f
all the national banks in the nation, will
deliver the opening address. He will be
followed by A. A. Berle, Jr., Special A d
visor of the Reconstruction Finance Cor
poration, who will speak on “ Some Essen
tials o f a Sound Banking System.”

Second Session
A t the second general session, Wednes
day, September 6th, an address on “ W hy
the American Banking System” will be
delivered by Harold Stonier, Educational
Director o f the Association, and George
V. McLaughlin, President o f the Brook
lyn Trust Company and President o f the
New York State Bankers Association will
speak on “ The Need for Revision o f the
Glass-Steagall A ct and a Sane Legisla
tive Program for Banking.”

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Another public official will present the
viewpoint o f state banking in the bank
ing problem before the meeting o f the
State Bank Division o f the association,
the afternoon o f Wednesday, September
6th, which will be addressed by Governor
A lf M. Landon, Governor o f Kansas, on
“ The Necessity o f a Sound State Bank
ing System Outside o f the Guaranty
A ct.” Also before the meeting o f the
Trust Division the morning o f Monday,
September 4th, Joseph Y. McKee, Presi
dent o f the Title Guarantee and Trust
Company, New York, former acting may
or o f NeAV York City, will deliver an ad
dress on “ The Real Estate Mortgage
Problem.”
Program
The detailed program o f the general
convention sessions, which will be held
at the Stevens Hotel, was announced by
Mr. Sisson as follow s:
General Convention: Tuesday, Septem
ber 5th, 10 :15 a. m. Call to order, Presi
dent Francis LI. Sisson, Vice President
Guaranty Trust Company, New York
City. Invocation, His Excellency Most
Reverend Bernard J. Sheil, D.D. A d
dress o f the president. Report, Official
Acts and Proceedings o f Executive Coun
cil. “ Forward,” Eugene R. Black, Gov
ernor Federal Reserve Board, Washing
ton, D. C. Appointment o f Resolutions
Committee. Wednesday, September 6th,
10:15 a, m. Call to order, President
Francis H. Sisson. Invocation. “ W hy
the American Banking System,” Harold
Stonier, Educational Director American
Bankers Association. “ The Need for Re
vision o f the Glass-Steagall A ct and a
Sane Legislative Program fo r Banking,”
George V. McLaughlin, President Brook
lyn Trust Company. Report o f Nomina
tions Committee and election o f officers.

Report o f Resolutions Committee. Thurs
day, September 7th, 10 :15 a. m. Call to
order, President Francis H. Sisson. In
vocation, Dr. John Thompson, Pastor
First Methodist Episcopal Church. A d
dress, James F. T. O’Connor, Comptroller
o f the Currency. “ Some Essentials of
a Sound Banking System,” A. A. Berle,
Jr., Special Advisor Reconstruction Fin
ance Corporation. Installation o f officers.
Divisions
The programs o f the various divisional
meetings are as fo llo w s :
National Bank Division, Grand Ball
Room, Stevens Hotel, Monday, Septem
ber 4th, 9 :30 a. m. Call to order, Presi
dent J. R. Cain, Jr., Vice President Oma
ha National Bank, Omaha, Nebraska.
Address o f the president. Appointment
o f committees. “ Interest Rates on Time
Deposits,” 0. Howard W olfe, Cashier
Philadelphia National Bank, Philadel
phia. Symposium, “ Adjusting Loaning
and Investment Policies Under the Bank
ing A ct o f 1933” : for city banks, Marvin
E. Holderness, Vice President First Na
tional Bank, St. Louis; for country
banks, Charles F. Zimmerman, President
First National Bank, Huntingdon, Penn
sylvania. Reports o f committees. Elec
tion and installation o f officers.
Savings Division, Grand Ball Room,
Stevens Hotel, Tuesday, September 5th,
2 :00 p. m. Call to order, President Gil
bert L. Daane, President Grand Rapids
Savings Bank, Grand Rapids, Michigan.
Appointment of committees. Address of
the president. “ The Significance o f the
Savings Banks Trust Company in the
Savings Business in New York State,”
Oliver W. Roosevelt, First Vice President
Dry Dock Savings Bank, New York City.
“ Do Savings Hamper Prosperity?” Si(Turn to page 22, please)

Northwestern Banker

September 1933

Q uality

- Q uantity

- M ethod of Expression

The Three Essentials
of the New Bank Salesmanship
are two great books o f life.
One is the Book o f Nature, the other
is the Book o f Human Nature. Most
bankers will agree that during thè next
five years, it is going to be more important
than ever before to study the Book o f
Human Nature. One o f the chapters o f
this book has to do with salesmanship.
Undoubtedly the word “ Salesmanship”
brings different thoughts to your respec
tive minds. There have been many differ
ent types o f new business activities carried
on under the guise o f salesmanship. You
are familiar with the premium campaign
o f the past, in which the prospective cus
tomer was offered a choice o f an alarm
clock, percolator, set o f dominos, or an
umbrella, fo r opening an account. In such
campaigns, it was frequently common to
emphasize the fact that at the end o f six
months the customer could close the ac
count and keep the premium. Another
form o f new business activity was the
employe, officer and director contest or
campaign, in which everyone in the bank,
under the pressure o f team competition
and special prizes, went out and asked
everybody and his brother to open an
account to “ help me out because we are
having a contest and I get credit fo r it.”
Seldom was the prospective customer told
how he might benefit from the transaction.
The records will show that such practices
did not build fo r permanency, either in
business or good will.

here

All Salesmen
The idea that everybody in the bank
should be a salesman for the bank is fun
damentally sound. The people o f the new
business department come in contact with
only a small percentage of the total num
ber o f customers and prospective cus
tomers. I regard every contact made with
the public by any officer or any employe
as a sales contact. Every time the mem
bers o f a bank staff come in contact with
the public they either make a favorable
impression or they make an unfavorable
impression. They either build up in the
mind of the person with whom they are
talking the respect he has fo r the bank or
they tear it down. They either make a
positive impression or a negative impres
sion. They either sell the bank or they
unsell it.

Northwestern Banker

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Federal Reserve Bank of St. Louis

September 1933

By GRANVILLE B. JACOBS,
Director of Sales Education for Banks,
South Orange, New Jersey

This A d d re ss on Bank Sales
manship W a s G iven by M r.
Ja co bs

Before

the

1933

C o n ve n tio n o f the A m e ri
can Institute o f Banking

“ No, I am dumb, I don’t understand you.”
None o f us like to admit that we do not
understand. The quality way for that
officer to have asked the question would
have been to have said, “ Have I made
myself clear?” By this question the cus
tomer would have been made to feel at
ease because the officer would have been
assuming the responsibility fo r any lack
o f understanding. This may seem like
a trifle to some but it is well to remember
that the human mind is very fragile and
in many cases a pinch o f sugar tips the
scale. It was Michael Angelo who said,
“ Trifles make perfection, but perfection
is no trifle.”
Two Words

So I say to you my friends, that in the
New Bank Salesmanship we must recog
nize every one in the bank as a salesman
fo r the bank. Remember of course, that
as salesmen, some will have different
duties than others. All cannot develop
trust business or the larger commercial
accounts, but every person connected with
the institution can contribute in rendering
service in such a way as to inspire confi
dence, create good will, and build for
additional business. Each has a definite
sphere o f influence that can be capitalized
for the bank.
Three Essentials
In considering this New Salesmanship
there are three essentials with which we
must deal. Everything has its essentials.
In the case o f food wTe usually think of
bread as being an essential. In an auto
mobile it is the gasoline, you cannot go
fa r without it. In a suit o f clothes it’s
the pants and so it is with the new bank
salesmanship, there are certain essentials.
I like to think o f these essentials as being
represented by an equilateral triangle, on
one side o f which is the quality of what
we say and write and do. On the otherside is the quantity and at the base is the
method o f expression.
First let us analyze the quality side.
Last November I overheard an officer in a
bank explaining the handling o f a mort
gage to a lady customer. A fter he finished
he asked, “ Do you understand me ?” This
question placed the lady in an embarrass
ing position. She did not like to say,

A few years ago Irving Berlin wrote a
song entitled “ My W ife Has Gone to the
Country.” Most o f you remember that
song. Undoubtedly some o f you sang it
at the time it was so popular. I am told
that when Berlin first wrote it he could
not get a dime for it. The publishers did
not want it. They turned him down flat
so he went back home and thought. He
thought!
And he added two words,
H oora y ! Hooray ! He then sold the song
fo r one hundred thousand dollars. One
hundred thousand dollars for two words
but they were words o f life and joy. They
were quality words so far as that song
was concerned.
I have a friend who was raised on a
farm. He still has a love for the farm and
frequently visits the farmer’s markets just
to study their natural manners and homely
philosophy. He likes to tell o f an inci
dent he witnessed some time ago at one
of these markets. A woman walked up
to the rig o f a farmer and asked, “ How
much are potatoes today?” With an in
different attitude the farmer said, “ Lady,
potatoes are a dollar and a half a bushel
today.” The woman replied, “ That seems
a little high fo r potatoes this time o f the
year.” “ Yes,” growled the farmer, “ ’taters
are kinder high today.”
Just a plain
blanket answer that wre so frequently get
from people who are supposed to be serv
ing the public intelligently. I am sorry to
say that we too frequently get such
answers from people in banks— the take
it or leave it attitude.
(Turn to page 23, please)

A cm e Interest Tables
Compiled By M ARIO N D. WOODS

HE interest tallies published here were compiled and arranged by Marion D.
W oods, cashier o f the Valley Savings Bank, Des Moines. Mr. Woods prepared
these tables originally fo r his own use, but so many o f his friends and associates

have asked him for copies, that he has decided to have them published.
The Acme Interest Tables, as Mr. W oods calls them, are figured on percentage rates
o f 5 per cent, 5^/2 per cent, 6 per cent, 6 Y2 per cent, 7 per cent and 8 per cent. In this
issue of T h e N o r t h -w e s t e r n B a n k e r are published the 5 per cent and 6 per cent tables.

Wide Margin
for Binding
if Desired

The 5 1/2 per cent and 6 y 2 per cent tables will appear in the October issue, and in
the November issue o f T h e N o r t h w e s t e r n B a n k e r the 7 per cent and 8 per cent tables
will be reproduced.

Answers to percentages falling above or below those named may

be obtained by either multiplying or dividing by 2, as the case may be. Mr. W oods
will be glad to answer any questions or communications directed to him regarding
the tables.
Explanation
The 360 day basis is used in these tables.
The bold face figures at the top o f the column represent the principal, the light figures
below represent the interest.
The principal figures at the top may be made to represent different amounts by chang
ing the decimal point.

Point off two places in the 40000 column it will read $400; by

pointing off three places it reads $40, and by pointing off four places it reads $4.
The interest to be computed will be in the column o f figures extending downwardly,
directly under the principal amount, and opposite the number o f days.

Point off the

same number from the right hand side as pointed off in the principal amount, then
point off two places fo r cents, fo r the correct amount o f interest.
Illustration : To find the interest on $486.00 fo r 120 days at 6 per cent.
Interest on $400.00 for 120 days amounts to $8.00
Interest on $ 80.00 for 120 days amounts to
Interest on $ 6.00 fo r 120 days amounts to

1.60
.12

Interest on $486.00 for 120 days amounts to $9.72
F o r 2 1/2 % r a t e divide a n s w e r b y 2.
F o r l o % ra te m u l t i p l y a n s w e r by 2.

Days
l
•¿

(Continued on page 11)

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10000
000139
000278
000417
000556
000694
000833
000972
001111
001250
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001667
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005278

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000278
000556
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004167
004583
005000
005417
005833
006250
006667
007083
007500
007917
008333
008750
009167
009583
010000
010417
010833
011250
011667
012083
012500
012917
013333
013750
014167
014583
015000
015417
015833

000556
001111
001667
002222
002778
003333
003889
004444
005000
005556
006111
006667
007222
007778
008333
008889
009444
010000
010556
011111
011667
012222
012778
013333
013889
014444
015000
015556
016111
016667
017222
017778
018333
018889
019444
020000
020556
021111

000694
001389
002083
002778
003472
004167
004861
005556
006250
006944
007639
008333
009028
009722
010417
011111
011806
012500
013194
013889
014583
015278
015972
016667
017361
018056
018750
019444
020139
020833
021528
022222
022917
023611
024306
025000
025694
026389

000972
001944
002917
003889
004861
005833
006806
007778
008750
009722
010694
011667
012639
013611
014583
015556
016528
017500
018472
019444
020417
021389
022361
023333
024306
025278
026250
027222
028194
029167
030139
031111
032083
033056
034028
035000
035972
036944

001111
002222
003333
004444
005556
006667
007778
008889
010000
011111
012222
013333
014444
015556
016667
017778
018889
020000
021111
022222
023333
024444
025556
026667
027778
028889
030000
031111
032222
033333
034444
035556
036667
037778
038889
040000
041111
042222

001250
002500
003750
005000
006250
007500
008750
010000
011250
012500
013750
015000
016250
017500
018750
020000
021250
022500
023750
025000
026250
027500
028750
030000
031250
032500
033750
035000
036250
037500
038750
040000
041250
042500
043750
045000
046250
047500

N orthw estern Ranker

S eptem ber 1933

3 REASONS
Banks Should
PART I
—Published here is
Part One o f a series o f two articles by
Mr. Craddick. Part Two will appear in
the October issue of T h e N o r t h w e s t e r n
( E ditor’ s

A dvertise

ote

B a n k e r .)

B y H. B. CRADDICK,
Minneapolis, Minnesota

E T ’S not waste time in arriving at
the correct answer:
1. Patrons
2. Public
3. Profits.
And if you wish to add a fourth rea
son, you might set down . . . the gov
ernment. The reasons are so obvious to
the banker that it seems unnecessary to
dwell on each o f them separately. Suffice
to say that stockholders want profits and
dividends, patrons want protection and
service, the public at large wants ade
quate and sound banking service to serve
its daily needs. And the government is
becoming an increasingly dominant part
ner in the business o f banking.
In all that has happened during the
past several years it will be well to re
member that A D V E R TISIN G has at all
times been a “ blue eagle,” available and
ready to do its part. More than a few
bankers, who have made intelligent, con
sistent and continuous use o f publicity
during the most trying times bankers
have ever known, will attest to that state
ment.
A Useful Tool
Advertising is a tool. I f it isn’t used
nothing happens. Results depend en
tirely upon how and when it is used.
Nor can the user expect the impossible.
Advertising never made a safe bank out
o f an insolvent one. Advertising never
has been, never will be, a substitute for
sound bank management.
But many banks that today enjoy the
full confidence o f their patrons and com
munities undoubtedly owe that com fort
able position to the fact that they used
advertising o f kind and character to
truthfully reflect facts and conditions
and so maintained customer confidence
and community good will in the face of
great odds o f negative public opinion.
Customer confidence and good will—
are they not the most priceless o f all
banking assets? Losses on sagged paper
and securities can be covered by surplus
and assessments. But there is nothing
in the bank’s vaults that will restore
losses o f confidence and good will.
Strange, isn’t it, that the two greatest

Northwestern Banker

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

September 1933

factors in a bank’s success should he
— not capital structure, building, equip
ment— all o f which can be set down in
figures— but two invisible intangibles and
both unpurchasable, for they must be
earned and deserved and incessantly
vigilantly protested.

gion Posts, Rotary, Iviwanis, Lions or the
local Commercial Club (if it has sur
vived) and yet under tactful direction,
all o f these organizations are in a posi
tion to play an important part in the up
building o f banking confidence, good will
and understanding.

A “Forgotten Asset”

Broader View

Advertising, however, is apt to be con
strued by some as merely an “ ad” in the
local paper, a “ circular letter” sent out
now and then, perhaps some folders or
blotters. In some banks, these consti
tute the entire gist o f the bank’s so-called

Looking to the future, it seems almost
certain that bankers will think less of
the term o f “ advertising” and more of
the broader, constructive term, “ public
relations.” Many bankers associations
already have committees which work un
der a title o f “ public relations.” Some
constructive work has been done by such
committees. They function at their best
in fair weather. It is doubtful if any
o f them have had time or inclination to
give constructive suggestions to associa
tion members during the past eight
months.
Some o f the larger banking institu
tions in metropolitan areas have well or
ganized public relations departments.
Where such activities are discussed be
fore banking groups and conventions, the
speaker usually comes from some large
institution where the bank deals only
with city conditions. Their experience
is, o f course, valuable but the banker in
smaller cities and towns finds but lim
ited assistance or information coming
from such highly organized departments.
Those bankers who still have the old
fighting spirit and expect to remain in
the banking profession, all henceforth
give renewed thought and attention to
the development o f a public relations
plan and program as a very definite part
o f their bank’s service to the community
and public.

T O M A N Y bankers, ad ver
tising has become a "fo r
gotten asset." Advertising
is a tool. If it isn't used,
nothing happens.
Results
depend upon H O W and
W H E N it is used.

advertising program. To many bankers
“ Advertising” lias become a “ forgotten
asset.”
Old time bankers will recall the days
when the bank took the initiative in al
most every local project involving the
raising o f funds. Poor old Mr. Jones’
one and only cow died.
The banker
headed up a subscription list with $5.00
and business men up and down the street
kicked in fo r a new cow fo r Jones. The
same plan was followed when the town
band needed new uniform s; when the
local ball club was putting on a two-day
tournament and needed a guarantee fund.
Bankers headed the lists for flag poles,
drinking fountains, Fourth o f July cele
brations, and a long list of equally im
portant events.
Most o f those duties and functions
have long since been taken over by Le

A Definite Plan
The bank in the small city or village
has just as much need o f a well devel
oped public relations program as his
brother banker in the large city— and he
can have a definite working plan o f his
own and simplified to meet his own local
conditions and needs.
(Turn to page 25, please)

Acme Interest Tables

Days

10000

20000

30000

40000

50000

60000

70000

80000

90000

:»>

005417
005556
005694
005833
005972
006111
006250
006389
006528
006667
006806
006944
007083
007222
007361
007500
007639
007778
007917
008056
008194
008333
008472
008611
008750
008889
009028
009167
009306
009444
009583
009722
009861
010000
010139
010278
010417
010556
010694
010833
010972
011111
011250
011389
011528
011667
011806
011944
012083
012222
012361
012500
012639
012778
012917
013056
013194
013333
013472
013611
013750
013889
014028
014167
014306
014444
014583
014722
014861
015000
015139
015278
015417
015556
015694
015833
015972
016111
016250
016389
016528
016667
016806
016944
017083
017222
017361
017500
017639
017778
017917
018056
018194
018333
018472
018611
018750
018889
019028
019167
019306
019444
019583
019722
019861
020000
020139
020278
020417
020556
020694
020833
020972
021111
021250

010833
011111
011389
011667
011944
012222
012500
012778
013056
013333
013611
013889
014167
014444
014722
015000
015278
015556
015833
016111
016389
016667
016944
017222
017500
017778
018056
018333
018611
018889
019167
019444
019722
020000
020278
020556
020833
021111
021389
021667
021944
022222
022500
022778
023056
023333
023611
023889
024167
024444
024722
025000
025278
025556
025833
026111
026389
026667
026944
027222
027500
027778
028056
028333
028611
028889
029167
029444
029722
030000
030278
030556
030833
031111
031389
031667
031944
032222
032500
032778
033056
033333
033611
033889
034167
034444
034722
035000
035278
035556
035833
036111
036389
036667
036944
037222
037500
037778
038056
038333
038611
038889
039167
039444
039722
040000
040278
040556
040833
041111
041389
041667
041944
042222
042500

016250
016667
017083
017500
017917
018333
018750
019167
019583
020000
020417
020833
021250
021667
022083
022500
022917
023333
023750
024167
024583
025000
025417
025833
026250
026667
027083
027500
027917
028333
028750
029167
029583
030000
030417
030833
031250
031667
032083
032500
032917
033333
033750
034167
034583
035000
035417
035833
036250
036667
037083
037500
037917
038333
038750
039167
039583
040000
040417
040833
041250
041667
042083
042500
042917
043333
043750
044167
044583
045000
045417
045833
046250
046667
047083
047500
047917
048333
048750
049167
049583
050000
05 0417
050833
051250
051667
052083
052500
052917
053333
053750
054167
054583
055000
055417
055833
056250
056667
057083
057500
057917
058333
058750
059167
059583
060000
060417
060833
061250
061667
062083
062500
062917
063333
063750

021667
022222
022778
023333
023889
024444
025000
025556
026111
026667
027222
027778
028333
028889
029444
030000
030556
031111
031667
032222
032778
033333
033889
034444
035000
035556
036111
036667
037222
037778
038333
038889
039444
040000
040556
041111
041667
042222
042778
043333
043889
044444
045000
045556
046111
046667
047222
047778
048333
048889
049444
050000
050556
051111
051667
052222
052778
053333
053889
054444
055000
055556
056111
056667
057222
057778
058333
058889
059444
060000
060556
061111
061667
062222
062778
063333
063889
064444
065000
065556
066111
066667
067222
067778
068333
068889
069444
070000
070556
071111
071667
072:222
072778
073333
073889
074444
075000
075556
076111
076667
077222
077778
078333
078889
079444
080000
080556
081111
081667
082222
082778
083333
083889
084444
085000

027083
027778
028472
029167
029861
030556
031250
031944
032639
033333
034028
034722
035417
036111
036806
037500
038194
038889
039583
040278
040972
041667
042361
043056
043750
044444
045139
045833
046528
047222
047917
048611
049306
050000
050694
051389
052083
052778
053472
054167
054861
055556
056250
056944
057639
058333
059028
059722
060417
061111
061806
062500
063194
063889
064583
065278
065972
066667
067361
068056
068750
069444
070139
070833
071528
072222
072917
073611
074306
075000
075694
076389
077083
077778
078472
079167
079861
080556
081250
081944
082639
083333
084028
084722
085417
086111
086806
087500
088194
088889
089583
090278
090972
091667
092361
093056
093750
094444
095139
095833
096528
097222
097917
098611
099306
100000
100694
101389
102083
102778
103472
104167
104861
105556
106250

032500
033333
034167
035000
035833
036667
037500
038333
039167
040000
040833
041667
042500
043333
044167
045000
045833
046667
047500
048333
049167
050000
050833
051667
052500
053333
054167
055000
055833
056667
057500
058333
059167
060000
060833
061667
062500
063333
064167
065000
065833
066667
067500
068333
069167
070000
070833
071667
072500
073333
074167
075000
075833
076667
077500
078333
079167
080000
080833
081667
082500
083333
084167
085000
085833
086667
087500
088333
089167
090000
090833
091667
092500
093333
094167
095000
095833
096667
097500
098333
099167
100000
100833
101667
102500
103333
104167
105000
105833
106667
107500
108333
109167
110000
110833
111667
112500
113333
114167
115000
115833
116667
117500
118333
119167
120000
120833
121667
122500
123333
124167
125000
125833
126667
127500

037917
038889
039861
040833
041806
042778
043750
044722
045694
046667
047639
048611
049583
050556
051528
052500
053472
054444
055417
056389
057361
058333
059306
060278
061250
062222
063194
064167
065139
066111
067083
068056
069028
070000
070972
071944
072917
073889
074861
075833
076806
077778
078750
079722
080694
081667
082639
083611
084583
085556
086528
087500
088472
089444
090417
091389
092361
093333
094306
095278
096250
097222
098194
099167
100139
101111
102083
103056
104028
105000
105972
106944
107917
108889
109861
110833
111806
112778
113750
114722
115694
116667
117639
118611
119583
120556
121528
122500
123472
124444
125417
126389
127361
128333
129306
130278
131250
132222
133194
134167
135139
136111
137083
138056
139028
140000
140972
141944
142917
143889
144861
145833
146806
147778
148750

043333
044444
045556
046667
047778
048889
050000
051111
052222
053333
054444
055556
056667
057778
058889
060000
061111
062222
063333
064444
065556
066667
067778
068889
070000
071111
072222
073333
074444
075556
076667
077778
078889
080000
081111
082222
083333
084444
085556
086667
087778
088889
090000
091111
092222
093333
094444
095556
096667
097778
098889
100000
101111
102222
103333
104444
105556
106667
107778
108889
110000

048750
050000
051250
052500
053750
055000
056250
057500
058750
060000
061250
062500
063750
065000
066250
067500
068750
070000
071250
072500
073750
075000
076250
077500
078750
080000
081250
082500
083750
085000
086250
087500
088750
090000
091250
092500
093750
095000
096250
097500
098750
100000
101250
102500
103750
105000
106250
107500
108750
110000
111250
112500
113750
115000
116250
117500
118750
120000
121250
122500
123750
125000
126250
127500
128750
130000
131250
132500
133750
135000
136250
137500
138750
140000
141250
142500
143750
145000
146250
147500
148750
150000
151250
152500
153750
155000
156250
157500
158750
160000
161250
162500
163750
165000
166250
167500
168750
170000
171250
172500
173750
175000
176250
177500
178750
180000
181250
182500
183750
185000
186250
187500
188750
180000
191250

40
41
42
43
44
45
4«
47
4S
4!)
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
07
(¡8
69
70
71
73
74
76

('(Continued on page 13)

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

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S4
85
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S7
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95
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loo
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152
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Northwestern Banker

nun

112222
113333
114444
115556
116667
117778
118889
120000
121111
122222
123333
124444
126556
126667
127778
128889
130000
131111
132222
133333
134444
135556
136667
137778
138889
140000
141111
14222:2
143333
144444
145556
146667
147778
148889
150000
151111
152222
153333
154444
155556
156667
157778
158889
160000
161111
162222
163333
164444
165556
166667
167778
168889
170000

September 1933

Results o f Recent

State Branch Banking Legislation
M innesota Legislature V o te d N O
W isconsin Legislature V o te d N O
Illinois C o n ve n tio n O p p o s e d
N o rth Dakota Bankers O p p o s e d
South Dakota Legislature V o te d YES
N ORDER that the readers of T he
N orth w estern B a n k e r may keep in
formed as to state legislation as it
affects branch banking, Ave are giving a
brief summary herewith of the results of
legislation on this question this year.

Minnesota Legislature Voted No
The Minnesota legislature which ad
journed in April, 1933, defeated a state
Avide branch banking bill Avhich Avas pre
sented at that time. The bill came up in
the Senate and was defeated by a vote o f
41-26. It was not called for a vote in
the House.
Wisconsin Legislature Voted No
The Wisconsin Legislature adjourned
on July 25, 1933, and passed a bill “ Re
lating to Receiving Stations” and which
is analyzed by the Legislative Committee
o f the Wisconsin Bankers Association as
folloAvs:
“ (Chapter 8) Relating to Receiving- Sta
tions. This act
(a) Suspends present Iuav to July 1,
1935.
(b) With approval of Board o f RevieAV, a bank may establish a receiving sta
tion to replace an existing bank or a closed
bank which has ceased to do business since
July 1, 1929, and in place o f Avhich no new
bank or receiving station has been opened,
providing
(1) It is for best interests o f the com
munity.
(2) Not to exceed four stations per
mitted to any bank.
(3) Stations must be located in county
in Avhich the bank operates, and
(4) Under rules and regulations pre
scribed by Banking Department
(5) No bank, a majority o f whose stock
is OAvned, held or controlled by a foreign
corporation, association or any form of
trust permitted to establish such station.”
This bill as enacted includes the decla
ration that “ nothing in this act shall be
construed as committing the State in any
manner to a policy o f allowing branch
banking within its borders
Illinois Convention Opposed
In the last session of the Illinois Legis
lature, the only branch banking bill sub-

Northwestern Banker

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

September 1933

mitted wyas one Avhich would have per
mitted branch banking in Chicago. The
bill Avas discussed by the House Commit
tee on Banks, Banking and Building and
Loan Associations, but the committee re
fused to give it further consideration and
as a result o f this the bill never came to
a vote.
In the “ Declaration of Policy” adopted
by the 43rd annual convention of the Illi
nois Bankers Association, they said:
“ We believe in the dual system. We
protest against any invasion o f states’
rights by taking from each commonwealth
the power to create its own banking sys
tem. The state banking systems have not
failed any more than the National and
Federal Reserve Systems have failed.
States should be permitted to retain the
right to charter banks in accordance with
localized sentiments and conditions. A
closer adjustment to local problems can
be had under state laws than under a
national act. There should be the alternatiATe opportunities that itoav exist from
which banking institutions and local busi
ness interests may choose, so that they can
function or conduct their business relation
ships under that banking code Avhich best
meets the conditions o f the times and of
the place as they see them.”
North Dakota Bankers Opposed
While no bill on branch banking was
introduced at the last session o f the North
Dakota Legislature, some consideration
was given to the advisability o f so doing
but it was believed that it would not be
possible to obtain the passage o f such a
measure so none Avas introduced.
South Dakota Legislature Voted Yes
At the special session o f the South Da
kota Legislature which adjourned last
month, House Bill No. 28 introduced by
the Joint Committee on Banks and Bank
ing was passed, it being, “ A bill fo r an
Act entitled, An act providing for the
establishment, operation and control of
Branch Banks and authorizing the consol
idation and purchase o f banks for the pur
pose of establishing branches and repeal
ing all acts in conflict herewith.”
The bill as passed reads as follow s:

“ Section 1.
Definition.
The term
branch bank as used in this act shall
be held to include any branch bank, branch
office, branch agency, additional office or
any branch place o f business at which de
posits are received or checks paid, or
money lent.
“ Section 2. Branch Banks Authorized.
A bank may establish and operate branch
banks Avithin the state with the permission
o f the State Banking Commission, under
such rules and regulations as they shall
prescribe, not inconsistent witli the laws
o f this state and permission to establish
and operate branch banks within the state
shall rest solely in the discretion of the
State Banking Commission. Such bank
must have a paid-in and unimpaired capi
tal stock o f not less than the aggregate
minimum capital required by law for the
establishment o f an equal number o f banks
situated in the various places where such
bank and its branches are situated and not
less than one hundred thousand dollars.
Branch banks may be established by a
bank consolidating Avith or purchasing the
assets o f another bank situated in the state
and banks within the state are hereby
authorized to consolidate for such purpose.
No branch bank shall be established in any
city or town o f less than 3,000 population
where there is an existing national or state
bank regularly transacting a customary
banking business, except by purchase of
or consolidating Avith all existing banks
located in such city or town, and no branch
bank shall be established in any city or
town o f more than 3,000 population and
less than 15,000 population where there
are two or more existing banks, either
state or national, legally transacting cus
tomary banking business, except by pur
chase o f or consolidating with an existing
bank or banks located in such city or toAvn.
Any national banking association whose
principal place of business is situated in
this state hereby is authorized to do all
things and perform all acts which state
banks o f this state are permitted to do
or perform under any provisions o f this
section, provided that the particular con
ditions and restrictions prescribed for
state banks o f this state with the exercise
o f like privileges are imposed upon and
complied Avith by said national banking
association. Provided, further, that no
such bank or branch bank, or any officer,
employe or agent o f such bank or branch
bank, shall engage in the life insurance
business or act as the agent or stockholder
of any life insurance company or asso
ciation.

Acm e Interest Tables

Days
154
155
156
157
15S
159
16«
1«1
162
163
164
165
166
167
168
169
17«
171
172
173
174
175
176
177
178
179
18«
7 m os.
8 mos.
9 mos.
1« mos.
11 m os.
12 mos.

10000

20000

30000

40000

50000

60000

70000

80000

90000

021389
021528
021667
021S06
021944
022083
022222
022361
022500
022639
022778
022917
023056
023194
023333
023472
023611
023750
023889
024028
024167
024306
024444
024583
024722
024861
025000
029167
033333
037500
041667
045833
050000

042778
043056
043333
043611
043889
044167
044444
044722
045000
045278
045556
045833
046111
046389
046667
046944
047222
047500
047778
048056
048333
048611
048889
049167
049444
049722
050000
058333
066667
075000
083333
091667
100000

064167
064583
065000
065417
065833
066250
066667
067083
067500
067917
068333
068750
069167
069583
070000
070417
070833
071250
071667
072083
072500
072917
073333
073750
074167
074583
075000
087500
100000
112500
125000
137500
150000

085556
086111
086667
087222
087778
088333
088889
089444
090000
090556
091111
091667
092222
092778
093333
093889
094444
095000
095556
096111
096667
097222
097778
098333
098889
099444
100000
116667
133333
150000
166667
183333
200000

106944
107639
108333
109028
109722
110417
111806
112500
113194
113889
114583
115278
115972
116667
117361
118056
118750
119444
120139
120833
121528
122222
122917
123611
124306
125000
145833
166667
187500
208333
229167
250000

128333
129167
130000
130833
131667
132500
133333
134167
135000
135833
136667
137500
138333
139167
140000
140833
141667
142500
143333
144167
145000
145833
146667
147500
148333
149167
150000
175000
200000
225000
250000
275000
300000

149722
150694
151667
152639
153611
154583
155556
156528
157500
158472
159444
160417
161389
162361
163333
164306
165278
166250
167222
168194
169167
170139
171111
172083
173056
174028
175000
204167
233333
262500
291667
320833
350000

171111
172222
173333
174444
175556
176667
177778
178889
180000
181111
182222
183333
184444
185556
186667
187778
188889
190000
191111
192222
193333
194444
195556
196667
197778
198889
200000
233333
266667
300000
333333
366667
400000

192500
193750
195000
196250
197500
198750
200000
201250
202500
203750
205000
206250
207500
208750
210000
211250
212500
213750
215000
216250
217500
218750
220000
221250
222500
223750
225000
262500
300000
337500
375000
412500
450000

F o r 3 % ra te divide ; a n s w e r b y 2.

10000

20000

30000

40000

50000

60000

70000

80000

9COOO

000167
000333
000500
000667
000833
001000
001167
001333
001500
001667
001833
002000
002167
002333
002500
002667
002833
003000
003167
003333
003500
003667
003833
004000
004167
004333
004500
004667
004833
005000
005167
005333
005500
005667
005833
006000
006167
006333
006500
006667
006833
007000
007167
007333
007500
007667
007833
008000
008167
008333
008500
008667
008833
009000
009167
009333
009500
0^9667
009833
010000
010167
010333
0 1 0SO0
010667
010833
011000
011167
011333
011*00
011667
0 i 1833
013000
012167

000333
000667
001000
001333
001667
002000
002333
002667
003000
003333
003667
004000
004333
004667
005000
005333
005667
006000
006333
006667
007000
007333
007667
008000
008333
008667
009000
009333
009667
010000
010333
010667
011000
011333
011667
012000
012333
012667
013000
013333
013667
014000
014333
014667
015000
015333
015667
016000
016333
016667
017000
017333
017667
018000
018333
018667
019000
019333
019667
020000
020333
020667
021000
021333
021667
02201*0
032333
022667
023000
023333
023667
024O00
024333

000500
001000
001500
002000
002500
003000
003500
004000
004500
005000
005500
006000
006500
007000
007500
008000
008500
009000
009500
010000
010500
011000
011500
012000
012500
013000
013500
014000
014500
015000
015500
016000
016500
017000
017500
018000
018500
019000
019500
020000
020500
021000
021500
022000
022500
023000
023500
024000
024500
025000
025500
026000
026500
027000
027500
028000
028500
029000
029500
030000
030500
031000
031500
032000
032500
033000
033500
014000
034500
035000
035500
036000
036500

000667
001333
002000
002667
003333
004000
004667
005333
006000
006667
007333
008000
008667
009333
010000
010667
011333
012000
012667
013333
014000
014667
015333
016000
016667
017333
018000
018667
019333
020000
020667
021333
022000
022667
023333
024000
024667
025333
026000
026667
027333
02S000
028667
029333
030000
030667
031333
032000
032667
033333
034000
034667
035333
036000
036667
037333
038000
038667
039333
040000
040667
041333
042000
042667
043333
044000
044667
045333
046000
046667
047333
048000
048667

000833
001667
002500
003333
004167
005000
005833
006667
007500
008333
009167
010000
010833
011667
012500
013333
014167
015000
015833
016667
017500
018333
019167
020000
020833
021667
022500
023333
024167
025000
025833
026667
027500
028333
029167
030000
030833
031667
032500
033333
034167
035000
035833
036667
037500
038333
039167
040000
040833
041667
042500
043333
044167
045000
045833
046667
047500
048333
049167
050000
050S33
051667
052500
053333
054167
055000
055833
056667
057500
058333
059167
060000
060833

001000
002000
003000
004000
005000
006000
007000
008000
009000
010000
0110O0
012000
013000
014000
015000
016000
017000
018000
019000
020000
021000
022000
023000
024000
025000
026000
027000
028000
029000
030000
031000
032000
033000
034000
035000
036000
037000
038000
039000
040000
041000
042000
043000
044000
045000
046000
047000
048000
049000
050000
051000
052000
053000
054000
055000
056000
057000
058000
059000
060000
061000
062000
063000
064000
065000
066000
067000
068000
069000
070000
071000
072000
073000

001167
002333
003500
004667
005833
007000
008167
009333
010500
011667
012833
014000
015167
016333
017500
018667
019833
021000
022167
023333
024500
025667
026833
028000
029167
030333
031500
032667
033833
035000
036167
037333
038500
039667
040833
042000
043167
044333
045500
046667
047833
049000
050167
051333
052500
053667
054833
056000
057167
058333
059500
060667
061833
063000
064167
065333
066500
067667
068833
070000
071167
072333
073500
074667
075833
077000
078167
079333
080500
081667
082833
084000
085167

001333
002667
004000
005333
006667
008000
009333
010667
012000
013333
014667
016000
017333
018667
020000
021333
022667
024000
025333
026667
028000
029333
030667
032000
033333
034667
036000
037333
038667
040000
041333
042667
044000
045333
046667
048000
049333
050667
052000
053333
054667
056000
057333
058667
060000
061333
062667
064000
065333
066667
068000
069333
070667
072000
073333
074667
076000
077333
078667
080000
081333
082667
084000
085333
086667
088000
089333
090667
092000
093333
094667
096000
097333

001500
003000
004500
006000
007500
009000
010500
012000
013500
015000
016500
018000
019500
021000
022500
024000
025500
027000
028500
030000
031500
033000
034500
036000
037500
039000
040500
042000
043500
045000
046500
048000
049500
051000
052500
054000
055500
057000
058500
060000
061500
063000
064500
066000
067500
069000
070500
072000
073500
075000
076500
078000
079500
081000
082500
084000
085500
087000
088500
090000
091500
093000
094500
096000
097500
099000
100500
102000
103500
105000
106500
108000
109500

9
1«
11
12
13
14
15
16
17
18
19

21
22
23
24
25
26
27
28
29
3«

31
32
33
34
35
36
37
38
39
4«
41
42
43
44
45
46
47
48
49
5«
51
52
5.3
54
55
56
57
58
59
C«
61
«2
«3

«4
65

6«
67
CS

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

Days
2
3
4
5

(Continued on page 15)

in n i

7«
71
72
73

Northwestern Ranker

September 1933

" W e Have Just Begun to
F IG H T !"
OME one made the remark at the
Illinois State Bankers Association
that addressing a, banker’s meeting
today is like addressing the G. A. R.’s.
There are so few o f them left. But as
our ranks have thinned the demand on
each individual has greatly increased.

These are times when men must be
men. A fter all these years o f putting
your last dollar into your institutions,
you still have a greater responsibility,
the rehabilitating of your banks and
your community.
You are the individuals who have
helped very materially in making this
great state o f Iowa what it is today.
Let your memories revert back to the
young men in your various communities
whom you have assisted in procuring
credit in agriculture or business and in
later years they made it plain to you in
their expression o f gratitude that if it
had not been for your help and encour
agement they never would have been
able to get a start.

Some Things th a t Bankers
C an

Do During the

N ext

Y ear to P rom ote a Return
to

N o rm a lly

Successful

Business C o n d itio n s and the
G e n e ral H appiness o f Their
C o m m u n ity

By F. E. BOYD,
President, The First National Bank,
Colfax, Iowa

United States. Don’t be pessimistic about
everything around you. Don’t talk it.
Every one tires hearing a pessimist rant.
Service Charges

Times A re Different
Business must be transacted differently
these days. Formerly in Iowa (50 or 60
years ago) land was worth five to thirtyfive dollars per acre and a banker could
take security on the land for a loan, feel
ing reasonably certain that in the next
year it would have advanced three to five
dollars per acre and your security was
better. That state o f affairs continued
until 1920 when we were partly stirred
out o f our lethargy by the fact that land
was worth no more than the profits above
the taxes and interest which we found
to our dismay was nil.
I recall very vividly in 1915 we had a
bank in Jasper County which advertised
that they held $450,000 worth o f Jasper
County first mortgages and were proud
o f it. When the war came on in 1917
these same real estate securities were
sold in Des Moines to insurance com
panies at their face value and accrued
interest. In the last ten years banks
that held real estate securities were not
proud to have it appear in their call
statement, and it is so today. Fortu
nately the products o f the farm are look
ing better to all o f us and the President
has taken things in his own hands. An
agricultural bill has been passed and we
have some great minds attempting to
put it into action.
Be an optimist. Be a bull on the

'Northwestern Banker

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

September 1933

Now about service charges. Bankers
must stop playing Santa Claus. Your
customers hesitate about doing business
with a bank that isn’t making money.
They want the bank to prosper and in
return they can be taken care o f in a
business-like manner by the bank. I f
the bank is prosperous in your commun
ity, people will remark in and out o f town
that you need not worry or be apprenensive about the stability o f your banking
institution. These statements will trickle
farther than you imagine. Have no un
easiness about your customer making a
run on your institution after it is once
opened. For the last ten years people
had lost confidence progressively in their
bank, or in fact in all the banks in the
country, regardless o f size or who was
running them until they were breaking
all the institutions by pulling out the
currency or preferably gold and hoarding
it. They wanted nothing but money. The
crisis arrived from a federal standpoint
by the President closing all the banks by
proclamation, until the nation could stop
and think and get their bearings. F ol
lowing the closing he later, when part
o f the banks opened, ordered the hoarded
gold to be returned to the Federal R e
serve Banks. I am happy to say we had
a President that had the courage, which
he put into action, that averted one o f
the greatest financial panics the world
would ever know.

Restricted Banks
Now about you bankers that are under
a conservator or under senate file 111.
W e thought we were running a fairly
good bank, but when we went down to
visit the chief bank examiner’s office we
found our bank was one o f those 75 per
cent institutions. W e came back home,
asked the depositors fo r a 25 per cent
waiver, produced 75 per cent within a
week without ever going out o f our in
stitution and before the final papers re
turned from Washington we had 96 per
cent. W e received our license, opened up
with plenty o f cash thinking everyone
would want their money. Only one de
positor called fo r the currency and the
amount was $1,800. No one else both
ered. The first three days our deposits
increased $30,000 and since then we have
had the greatest load lifted from our
mind about the people wanting their
money. W e hadn’t smiled for three years
when every morning we would pick up
a paper and note where several banks
had closed.
I f there are any bankers that are not
opened in full, the National bankers go
down to Chicago immediately and find
out what is required o f you and come
back home and work it out. You can
do it, but you must not get discouraged
when you run up against obstacles. The
State bankers that are under senate file
111, go down to Des Moines and get into
consultation with Superintendent Bates.
There will be nothing that he will not do
for you so fa r as time and advice goes.
The Federal and State departments want
to do what is equitable to all concerned,
the depositors, stockholders and com
munity. Neither the Federal or State de
partments want to put any undue hard
ships upon any bank but the banks must
come up to the requirements.
When you go home, kiss your wife and
if you haven’t one, kiss some other man’s
w ife’s daughter. Stand firm and instill
hope into your community.
W e are Iowans, born within its bor
ders, between the two greatest rivers of
this western country which flow so peace
fully southward. Iowa, with its black
loam which is not surpassed on earth
for its fertility to raise the golden corn
that fattens the finest cattle and hogs
on earth.
It has gone out that IoAva is licked.
W e have just begun to fight.

Acme Interest Tables

Days
74
75
7«
77
78
70
SO
SI
82
83
84
85
80
87
88
89
90
91
92
93
94
95
90
97
98
99

100
101
102
103
104
105

100

107
108
109

110
111
112

113
114
115

110

117
Ï1S
119

120
121
122
123
124
125

120

127
128
129
130
131
132
133
134
135
130
137
138
139
140
141
142
143
144
145
140
147
148
149
150
151
152
153
154
145
150
157
158
159

100
101
102
103
104
105

100

5y2 per cent and 6% per cent tables
will appear in the October issue of
The Northwestern Banker.

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

107
108
109
170
171
172
173
174
175
170
177
178
179
180
7 mos.
8 in os.
9 m os.
10 m os.
11 m os.
12 m os.

10000

20000

30000

40000

50000

60000

70000

80000

90000

012333
012500
012667
012833
013000
013167
013333
013500
013667
013833
014000
014167
014333
014500
014667
014833
015000
015167
015333
015500
015667
015833
016000
016167
016333
016500
016667
016833
017000
017167
017333
017500
017667
017833
018000
018167
018333
018500
018667
018833
019000
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Northwestern Banker

September 1933

16
new Glass-Steagall Bill and make this
decision on or before one year from the
date the law went into effect.
It is also rumored that in this new
setup one or two o f the larger New York
banks will be combined into what will be
known as the Morgan Bank, even as the
Chase is known as the Rockefeller bank.
D W IN BIRD W ILSON, president o f
the well known financial advertising
agency which bears his name, believes
that :
“ The elimination o f interest on com
mercial deposits tends to make possible
reasonable profits on fair-interest com
mercial loans and to provide funds for
efforts to increase the bank’s line o f
desirable deposits and loans. It points
to more and fairer advertising by banks
o f deposit.
“ Generally speaking, the Banking Act
o f 1933 gives added power and influence
to bank advertising.”
Every banker who expects to regain
the confidence and prestige which he
once had in his community must use ad
vertising in a more consistent and more
intelligent way than he ever has before.

past president o f the Advertising Club,
and has been active in many civic organ
izations in that city.
The object o f the Bureau is to see that
truth in advertising is the keynote o f
copy used by merchants in that city.
R. GOSSETT, vice president o f
, the Security National Bank
Sioux City, tells me that the Board of
Trustees o f the trust fund of the Security
National Bank, have paid out a 5 per
cent dividend which amounts to $31,000.
This dividend is going to certificate
holders o f record, o f whom there are
about 1,200.

NE o f the cleverest questionnaires
which I have seen in some time is
being sent out to stockholders o f the
GENERAL MOTORS CORPORATION,
G. SAM, president o f the Live
asking them what kind o f car they would
. Stock National Bank o f Sioux like to have in 1934. This includes ques
City, sends me a copy o f their local news
tions on the style o f the car, the radiator,
paper carrying the views o f the mam
the number o f cylinders, the upholster
moth N.R.A. parade which was held in
ing, inside gadgets, and accessories, and
that city, and underneath a picture of a
should prove most interesting material
team and buggy, on which was the name
fo r the company in the preparation of
o f the bank, is the statement: “ With
their models fo r next year.
teamwork we expect to drive back to
As this questionnaire indicates “ There
prosperity.”
Three beautiful young
is only one person qualified to say just
ladies, together with the driver, were in
what the motorists prefer, and that per
the buggy, and I certainly agree with
son is the motorist himself.”
the statement concerning them which
I wonder what kind o f answers bank
says, “ With such promise and three wisps
ers would get to a questionnaire sent out
o f maids dressed in the dainty styles o f
to the customers asking them what kind
happier days— well, who isn’t willing to
o f bank service they would like to have
go fo r a ride with the N.R.A.— lucky
— at that, it wouldn’t be a bad idea to ask
coachman.”
them once in awhile.

A R R Y H. PETERSON, attorney
general o f Minnesota, has given his
opinion to ELMER A. BENSON, state
commissioner o f banks, that banks in
Minnesota desirous o f joining the Fed
eral Reserve System, under the recent
act o f congress, but lacking the required
$30,000 capital can do so by issuing pre
ferred stock and cashing it through the
Reconstruction Finance Corporation.
Mr. Peterson said that there is no
Minnesota law that prevents banks from
issuing preferred stock. This ruling en
ables State banks to obtain adequate
capital funds without appealing to local
stockholders.

AGES TO EM PLOYES UNDER
THE N.R.A. banking code are as
fo llo w s :
$15.00 per week— Cities of 500,000 or
over.
14.50 per week— Cities of 250,000 to
500,000.
2,500
to
14.00 per week— Cities
of
250,000.
12.00 per week— Towns o f less than
2,500.
This schedule, o f course, is the mini
mum wage that any employe shall be
paid, and certainly is not out o f line
with an industry as basic and fundamen
tal as banking.

B. CRADDICK, president o f the
HE latest gossip from W all Street
. Craddick Service, Inc., is the new
is that J. P. MORGAN & COMPANY
president o f the Better Business Bureau
will go out o f the securities business and
o f Minneapolis.
into the banking business. They have
Bert, as he is known to his friends, is
to decide one way or the other under the

Northwestern Banker

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

September 1933

ENATOR JAM ES COUZENS did
quite a bit o f “ cussin” during the
Michigan banking hearing at Detroit last
month.
He read primarily from National Bank
Examiners and Federal Reserve Exam
iners Reports, and it is apparent from
the reports o f these examiners that they
of
had the condition o f the First National
properly analyzed, but evidently their
suggestions were not carried out because
o f what was called “ political expediency”
at the time.
As I analyze it, the officers and direc
tors o f this bank and its affiliated insti
tutions sowed the wind and reaped the
whirlwind.
A few o f the more pertinent para
graphs in these examiners’ reports I am
giving herewith, and you can make your
own deductions as to the situation which
existed before the Michigan bank holi
day.
“ The first examination o f the First Na
tional Bank after its consolidation was
May 6 to June 3, 1932.
“ It shows 256,370 shares o f Detroit
Bankers Co. (the controlling group)
stock pledged as collateral for loans in
the First National, when it is illegal for
a bank to lend on its own bank stock.”
“ The liquidity o f the bank was 28 per
cent, that loans to officers and employes
totaled $3,083,000 on which a loss o f
$2,000,000 was estimated.”
“ Reading from the reports a statement
concerning $4,000,000 in loans to em
ployes of the bank, o f which it was
stated ‘$2,000,000 already is a loss and
more will be later,’ the senator, quoted
the examiner’s November, 1932, report as
fo llo w s:
“ ‘Most o f these loans were for the pur
chase o f Detroit Bankers Co. stock (the
holding company). The fall in this stock
has broken the morale o f the employes
and created defalcation dangers. The di
rectors should relieve the employes o f
this stock. The stock has fallen from
more than $300 a share to $9 and is the
root o f much o f the trouble. The bank
has about 256,000 shares as- collateral for
loans.
It was a dangerous act to allow
such a condition to exist.’ ”
“ W ith two or three exceptions, the ex
ecutives are weak and unqualified; fair
weather bankers who do not know how
(Turn to page 26, please)

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

1863

1933

.N a sm all, alm ost frontier city,
The First National Bank of Chicago
was organized in 1863. Its growth has
reflected the growth of the territory
of which Chicago is the commercial
center.
From little more than a local bank the
First National has developed world
wide connections with facilities for
the prompt and efficient handling of
financial business.
T h rou gh the Banks and Bankers
D ivisio n correspondents have an
intim ate personal contact with
business developments, national and
international.
N ew business is invited.

The First National
Bank o f Chicago
CHARTER N UM BER EIGHT

Northwestern Banker

September 1933

BANKSA N D THE PUBLIC
This A u th o r Feels That Banks and Bankers A re

By H. A. LYON
Advertising Manager
Bankers Trust Company, New York
President
Financial Advertisers Association

N o t Popular.

W hy?

Because, H e Says, "E ith e r Banking Is N o t Y e t G o o d Enough to W a r
ra n t C o n fid e n c e , O r It IS G o o d But People Do N o t Know A b o u t It.
Perhaps a C o m b in a tio n o f the Two Reasons C om es C lose to the T ru th "

A N K S and bankers are not popular,
and the blame is surely in part upon
banks themselves. I believe that by
and large bankers have been honest: I
doubt if, on the whole, bankers can be
accused o f bad judgment. There have
been plenty o f errors in judgment, to be
sure, but no more than were made by other
men relative to the information they pos
sessed. It seems to me that the record o f
banking, so far as operations in individ
ual banks are concerned, is not too bad.
And yet bankers are unpopular, and the
public lacks faith in banks. W hy?
I think there can be only two reasons :
either banking is not yet good enough to
warrant confidence, or it is good but peo
ple do not know it. Perhaps a combina
tion of the two reasons comes close to the
truth. I am not qualified to speak as a
bank operating man, but merely as an
observer more or less acquainted with the
general situation. That there is some
thing radically wrong with a banking
structure that has fallen down under
every major strain put upon it seems an
inevitable conclusion. Abler brains than
mine have failed to agree up to now as to
the remedy. It is true, o f course, that
each crisis has produced changes in prac
tice, legislative or otherwise, that seem to
correct certain weaknesses, yet the next
crisis reveals neAv difficulties and witnesses
the collapse o f additional units in the
system. My only excuse fo r offering a
suggestion looking toward an improve
ment in the structure itself is that I am
anxious to see a system evolved that will
o f itself merit public confidence. Other
wise all o f our attempts to create such
confidence by the usual public relations
methods will be money wasted. I think it
is safe to say that up to now a great deal
o f the public relations effort on the part
o f banks has done more harm than good,
because the product has been oversold.
This may or may not have been deliberate,
but it is true none the less. So you see
my interest in the quality o f banking is
not only legitimate— it is vital.
Welfare of Depositors
One obvious suggestion fo r bettering
the banking structure is a simple one—
adopt the point of view and operating
N orthw estern B anker

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

S eptem ber 1933

policies looking toward the lasting welfare
o f the depositors. It has seemed to me
that a great deal o f the discussion on the
banking system has been concerned with
the short-sighted self interest of the bank
ers, rather than with the protection of
depositors. I hope I am wrong, but I
believe that my view is shared by a large
group o f laymen. Viewed from the de
positors’ point o f view, fo r instance, the
question o f branch banking takes a differ
ent complexion. Without taking a stand
either way, I see the depositors’ interests
served better by a branch o f a strong bank
in a nearby metropolis than by a weak
local institution. On the other hand, if
we may take commercial experience as a
standard o f judgment on human actions,
the good local institution will be able to
prosper and progress in the face of
branch bank competition. This reduces
the situation to the simple necessity fo r
strength, whether the organization be local
or branch. So long as both were strong,
the public would be in a position to sup
port whichever afforded the best service.
Strength and Soundness
W e come back inevitably to strength
and soundness as fundamental necessities,
whatever form banking may t a k e .
Strength and soundness would seem to
imply rigid requirements for procuring
and retaining a bank charter. I cannot
help but feel that any bank or group
which opposes the rational stiffening o f
these requirements forgets that its own
interests are in the end identical with the
interests o f the public. It would also
seem to me that guaranty o f deposits and
similar suggestions lose importance as
permanent measures provided the system
is so strengthened as to make them un
necessary.
The other side of the picture is this :
The system may not be perfect, and yet
not as bad as is painted. In other words,
the public is not even aware of the pres
ent good that exists in the banking field—
and there is much that is good. There is
no question o f the “ economic illliteracy”
o f our people. I f p roof is needed, con
sider the legislative panaceas offered ;
consider the reception recently accorded
President Roosevelt’s radio address— par

ticularly the commendation of his explan
ation that banks did not put the deposi
tors’ money in vaults, but invested the
bulk o f it; listen to the loose discussions
on financial matters among people other
wise well informed. I hold that the banks
are in part to blame fo r this condition.
They have failed not only to do their share
in educating the community in fundamen
tals o f finance, but also in the much more
pertinent job o f showing the necessity for
and the excellent services afforded by
banking generally. They have neglected
to give to the public even the information
to which it is entitled, and which would
have done much toward fostering the
faith and confidence in our good banks.
I am quite aware that with weaknesses in
the system, and the possibility o f further
undermining public confidence, it has been
difficult fo r good banks to tell their story
and have it believed. Yet I submit that
the public is entitled fo r its own protec
tion to information which would permit
discrimination in the selection o f good
banks. Certain standards o f practice are
universally considered sound; certain
banking functions are fundamental, and
will continue so long as there is a banking
structure o f any nature. These things, I
think, may be explained, to the benefit of
banking.
Coincident with the definite
betterment o f the banking goes an im
provement in the public concept of bank
ing, and the responsibilities, functions and
privileges o f banks. It is a task not for
the government, but fo r banks themselves.
Changing Times
It is time that bankers recalled that the
backbone of their success— o f their very
existence— is people,— plain, everyday
people. I f the people lack confidence in
the banks, the banks suffer; if the people
do not comprehend banking service they
cannot use it to the advantage o f them
selves or of the banks.
With the changes which have character
ized economic America we banks have
changed mightily. With the larger units
o f production have come larger financial
units.
With national distribution has
come a demand fo r national financing.
Expansion has been rapid in commerce
and finance, and with mass production

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Federal Reserve Bank of St. Louis

m ore than fifty years the

corresp on d en t

se rv ice s

Central Hanover have been preferred
by leading bankers.

entral

an o ver

B A N K A N D TRUST C O M P A N Y
N E W YORK

Representative Offices in

LONDON,

PARIS,

BERLIN

AND

BUENOS

AIRES

Northwestern Banker

September 1933

20
has come mass banking, with one inevitable
result— an impersonal attitude. Will this
continue, or shall we revert to smaller and
more personal units in all fields? I do
not know how my own chiefs feel about
this, hut fo r myself, I feel everywhere a
revolt against impersonalism. The family
physician is said to be coming back; mass
educational methods are severely criti
cized. There is a struggle to reassert in
dividualism. This holds a distinct sugges
tion fo r bankers, I think, in their public
relations attitude.

Bankers Can
Testify to This

The advertising world has a name for
this— the “ you attitude” . It is in effect
merely the adoption of the customer point
o f view. Instead o f telling people about
yourself, you talk about things which in
terest them. Instead o f discoursing on
size or age, o f capital, surplus and undi
vided profits, you interpret these things
into what they mean to the reader or
listener.
Understand Each Other

YOUR

bank

reserves, note

the

performance of Iowa County and
Municipal Bonds these last few years,
compared with other types of securities.
Among your bond customers, check
the same comparison.
Is there any better guide to why Iowa
Municipal and County issues are the
best buy today, on any investment list?

W e specialize in Iowa County
and Municipal Bonds for banks.
Ask for our list.

C arleton D. B eh C o .
IN V E ST M E N T S E C U R IT IE S
Twelfth Floor, Des Moines Building
Des Moines
Phone 4-8156

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Northwestern Banker

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Federal Reserve Bank of St. Louis

September 1933

You think that I ’m talking about adver
tising— paid space in the newspapers. I
am, but only as it fits into a much larger
picture. I ’m talking about policy— a true
policy o f “ public relations.”
To effect
that it is essential that you decide con
sciously, after due deliberation, just what
position you want your bank to occupy
in your community— what sort of person
ality you want it to have— what kind o f
customers you are going to cater to. A fter
you have so decided you must agree on a
program toward that end— and stick to it.
Such a program will have several re
lated efforts.
First, every officer and
every employe who meets the public
ought to be told just what you are driving
at— he can do much to help, and if he is
not informed he can do much to harm.
One piece of discourtesy or bad judgment
at the teller’s window may do more dam
age than can be repaired in months. Re
member that to the vast majority o f your
depositors the teller or the clerk may be
the bank. Next, it is often possible to
stop misunderstanding before they start.
If, on opening an account a customer is
thoroughly informed as to what he may
expect o f the bank, and if the bank gets
a pretty good idea o f what the customer
is going to need, there will probably be
little friction in that account.
Value of Advertising
A good many o f you probably consider
advertising of doubtful value.
It is,
under some circumstances. Advertising is
worse than useless unless it gives a proper
picture o f the institution— the “ friendly
bank” theme suffers when it encounters
a surly teller; the statement “ we welcome
small accounts” doesn’t go well unless the
bank is really interested in such accounts.
Nor does advertising do much good when
it is purely selfish, and published solely
(Turn to page 29, please)

Bonds and Investments
"In the S election o f a P o rtfo lio fo r
1933 and 1934, Y ield Is in a M easure
F o rg o tte n , But M a rk e ta b ility
to a C lose S crutiny.

Is S ubjected

Securities S elected T oday

M u st Be o f the Type W h ic h C an be Sold W ith o u t
Too G re a t a G a p Between Purchase and Selling P rice."

Present-Day Changes
In the Banker’s Investment Program
OW has the American banker
changed his investment program
to conform to present-day finan
cial requirements? Has there recently
been an about-face in his bond purchases
fo r secondary reserve and permanent in
vestments? To what extent should his
assets be liquid?
The answers to these questions disclose
the fact that the banker o f today is an
entirely different individual, mentally,
than he was a year or two ago. The
events of the past twelve months have
developed an attitude o f conservatism
which governs all o f his transactions. It
is an attitude engendered alike by the
specter o f “ frozen assets” and a keen
regard fo r the safety o f the funds in
his keeping.
American bankers have only recently
adopted this policy o f conservatism
which has dominated the affairs o f B rit
ish and European financiers fo r a great
many years. It is a policy which should
have been inaugurated in the United
States long before frozen assets forced
us into an attitude o f retrenchment.

By WINFIELD C. JACKLEY,
President,

Jackley-Wiedman
Des Moines

Company,

need arises, can be sold without too great
a gap between purchase and selling price.
A loss o f ten or fifteen points would con
stitute a serious menace.

Not on the List
Securities which in 1930 and 1931 were
considered desirable and which were
readily accepted by the average banker
are today on the taboo list and must
find their market among private in
vestors.
This is not necessarily a reflection
upon the basic value o f the securities
themselves, nor a doubt as to the spon
sors’ ultimate ability to pay. It is a con
dition brought about by the demand that
a bank’s assets be kept sufficiently liquid
to meet any financial emergency.
In the selection of a portfolio fo r 1933
and 1934, yield is, in a measure, fo r
gotten, but marketability is subjected to
a close scrutiny. Securities selected to
day must be o f the type which, if the

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Federal Reserve Bank of St. Louis

Long term bonds, other than govern
ments, do not constitute a satisfactory
secondary reserve in view of present-day
requirements. For a bank’s assets must
be composed o f highly liquid securities
which will have a minimum o f fluctuation.
Secondary Reserve
The percentage o f liquidity o f a sec
ondary reserve depends upon the indi
vidual requirements o f a particular in
stitution. Some bankers may find it ex
pedient to keep their assets between 90
per cent and 100 per cent convertible,
while this figure may drop to 70 per cent
in another locality.
It is exactly similar to the position of
a private investor who has $100,000 at
hand fo r the purchase o f securities. The
wise investor will proportion his selec
tion in direct ratio to his probable future
requirements. I f he feels that there may
be a time during the life o f his invest
ment when he may need all o f his capital
upon an hour’s notice, then 100 per cent
o f his purchases will be o f securities
which can be marketed instantly at or
near the price he paid for them.
Should his analysis reveal that no
emergency will require more than 70
per cent o f his investment at any one
time, then he may place the remaining
30 per cent o f his capital in securities
of less marketability but a higher yield.
Conservatism

W I N F I E L D C. J A C K L E Y

Head the List
Governments, naturally, head the list
in the matter o f safety and liquidity.
Then come municipal, road and school
bonds, public utilities and high grade
industrials, with general industrials and
railroads bringing up a undesirable rear.
Real estate bonds are definitely out of
the picture, for the time being at least.

In other words, the present-day atti
tude on the part o f a banker is to reduce
to an absolute minimum the speculative
nature o f his investments. The safety
factor looms with paramount importance.
He cannot afford to take even the slight
est chance on the liquidity o f a security
even though the higher yield might be
needed to swell the profit side of his
ledger.
The attitude o f conservatism is not

Northwestern Banker

September 1933

22
confined solely to the selection o f securi
ties. It extends also to the loans made
to firms and individuals. It is a definite
policy which compels the banker to often
say “ no” to a, customer who a few years
ago would have been considered a desir
able and profitable risk. F or if there is
the slightest hint of speculation in the
uses to which a loan is to be put, in
variably the banker will decline the loan.
There must not be the smallest doubt
in his mind but that the principal will be
paid or reduced at maturity.

YOUR L G G S IN
ONE B A S K E T
d. _ .
ment for safety in any investment program!

Trite but still true!

The obligation of a small community would be satisfactory for a
portion of the total bond portfolio, but no banker would invest the
entire reserve of his bank in one such issue. Why restrict your invest
ments in municipals to one state ?
There are prime credits to be had in the East and West, in addition
to your local issues.

Financial reports are readily available. The

discerning banker can still purchase excellent municipal obligations of
many parts of the country, possessing the utmost in liquidity and to
yield 4.20 to 4.50 per cent.
Polk-Peterson are in touch with all the leading municipal markets in
the United States and are in a position to make offerings of and bids
for all the leading municipal credits.

POL K - P E TE RS ON CORP.

A . B. A . C o n ve n tio n

INVESTMENT SECURITIES
Des Moines Building, Des Moines

Telephone 3-3245

Branch offices at Ottumwa, Waterloo, Sioux City and Cedar Rapids
PRIVATE WIRES TO A L L O F THE L E A D IN G F IN A N C IA L MARKETS

N orthw estern B anker

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Federal Reserve Bank of St. Louis

S eptem ber 1933

Little Too Careful
It is possible that the careful banker
leans a little too far backward in ana
lyzing the purposes and security behind
a loan, but if he does he is only following
the trend toward absolute assurance that
he will be able to meet every depositor’s
requirements if and when the emergency
arises.
Although accentuated in the early
months o f this year, this attitude o f con
servatism is not a sudden decision on
the part o f American bankers. I f placed
on a, chart, it would be found that the
line started to ascend over a year ago
and climbed steadily until February,
March and April o f 1933 when it took a
sharper angle upward. In the last few
months, however, it has leveled off and
will hold its present position for an in
definite period. It will not start to de
cline, in fact, until the industrial con
ditions o f the country are so stabilized
that a slackening o f this rigid policy is
justified.
Whether this period be six months, or
a year, or two years, is problematical.
But this much is certain: The banker of
today or the future will not revert to
that state o f promiscuous lending or buy
ing which characterized much o f his busi
ness a few years or a decade ago.
Increased employment, stabilized busi
ness and increased deposits may and
probably will bring about a modification
o f the severe, present-day policy, but in
the future no loans will be made which
do not fulfill the utmost demands of
sound business practice, nor securities
purchased which do not answer satisfac
torily the requirements of true safety
and reasonable liquidity.
The banker’s investment program has
definitely entered upon a new era— an
era which will fu lly ju stify the renewed
confidence and faith on the part o f the
public in a banking structure which will
prove a solid foundation for industrial
prosperity.

(Continued from page 7)
mon Newcomb Whitney, The Chase Na
tional Bank, New York City. “ Maintain
ing Confidence in the Savings Dollar,”
Orrin C. Lester, Vice President The Bow
ery Savings Bank, New York City. For-

23
um discussion. Reports o f committees.
Election and installation o f officers.
State Bank Division, Grand Ball Room,
Stevens Hotel, Wednesday, September
6th, 2 :00 p. m. Call to order, President
L. A. Andrew, Vice President First Bank
& Trust Company, Ottumwa, Iowa. A d
dress o f the president. Appointment o f
committees. “ The Necessity o f a Sound
State Banking System Outside o f the
Guaranty A ct,” A lf M. Landon, Governor
o f Kansas, Topeka, Kansas. “ Maintain
ing Earning Power W ith Liquidity,”
John J. Driscoll, Jr., President Driscoll,
Millet & Company, Analysts in Bank
Management, Philadelphia. Forum dis
cussion. Reports o f committees. Elec
tion and installation of officers.
Trust Division, Grand Ball Room, Stev
ens Hotel, Monday, September 4th, 2 :00
p. m. Call to order, President R. M. Sims,
Vice President American Trust Company,
San Francisco, California. Address of
the president. “ Trust Departments and
the Bank Holiday,” a statement by the
Comptroller o f the Currency o f the
United States. “ The Real Estate M ort
gage Problem,” John Y. McKee, Presi
dent Title Guarantee and Trust Com
pany, New York City. Reports o f com
mittees. Election and installation o f offi
cers.
State Secretaries Section.
Private
Dining Room No. 2, Stevens Hotel, Tues
day, September 5th, 2 :00 p. m. Board
o f Control and general meeting. Call to
order, President W all G. Coapman, Sec
retary W isconsin Bankers Association,
Milwaukee. Annual report of the presi
dent. Appointment o f committees. B rief
committee chairmen reports : Bank Man
agement, Theo. P. Cramer, Jr.; Banking
Education, Andrew M iller; Insurance
and Protection, George A. Starring; Leg
islation, Paul P. Brown; Public Educa
tion, C. W . Beerbower. Forum discus
sion, led by J. W . Brislawn, Secretary
Washington Bankers Association, Seat
tle, Washington. Election and installa
tion o f officers.

Three Essentials o f
Bank Salesmanship

NO. 2 OF A S E R I E S I N T R O D U C I N G
T H E M E M B E R S OF O U R O R G A N I Z A T I O N

T H O M A S M . B O W E N , Treasurer

R A D U A T E of Wharton School of Finance,
University of Pennsylvania, is “ Tom” Bowen,
Treasurer of Jackley-Wiedman & Company, Des
Moines bond house specializing in Iowa Municipals.
A whiz at figures, accurate, methodical—his o. k. on
your statement is one thousand to one odds that it is
right. Treasurer of the company since it was estab
lished, “ Tom” has a record of accuracy well above
99.99 per cent.

(Continued from page 8)
How M any?
The woman walked doAvn the aisle to
the rig o f another farmer and asked the
same question. The second farmer said,
“ Madam, potatoes are two dollars a
bushel.” She immediately told him that
the farmer down the aisle was selling them
for a dollar and a half. Farmer number
two said, “ That may be, madam, but my
potatoes are two dollars a bushel and I
shall tell you the reason why. In the first
place ’taters I raise have very small eyes
in them so that when you peel them thar
ain’t much waste. Second, all my ’taters
are sorted in two sizes, one fo r boilin’, the

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Federal Reserve Bank of St. Louis

J a c k l e y -W ied m an
£<? C om pany
DES M O IN ES
Register and Tribune Bldg.
C E D A R R A P ID S

Phone 3-5181

C H A R IT O N

M A S O N C IT Y

Northwestern Banker

OMAHA

September 1933

24
other for bakin’ so when you cook ’em you
save fuel. The third reason, Lady, why
my ’taters are two dollars is because they
are all washed clean. You can take a bag
o f ’em into your parlor, shake ’em up
and down and there won’t be a bit o f dirt
come out on your floor. Madam, them’s
the reasons why my ’taters are two dollars
a bushel. How many bushel do you
want ?”
And do you know that the woman bought
two bushels o f potatoes at two dollars a
bushel instead o f buying any from the
other farmer at a dollar and a half. W hy ?
In the first place this farmer knew his
potatoes. In the second place this man

had the courage to sell up to a standard
instead o f down to a price!
Gentlemen, one of the things we need
in banking today is more men Avith the
courage of the farmer to sell up to a
standard and not down to a price. W e
need men who have the courage to stand
up and tell the public why it is better for
them to accept 2% per cent or 3 per cent
on interest and savings accounts instead
o f trying to meet competition at a rate
that is too high fo r conservative banking.
W e need bankers who have the courage to
tell their customers the reasons why a
service charge is justified on commercial
accounts that do not pay their own way.

qualified . . . .
with every facility for handling the
business o f o u t-o f town banks or
bankers. Your account is invited.

C i t y N a t io n a l B ank
AND

TRUST

C O M P A N Y

C hicago

208 S o u t h L a S a l l e S t r e e t

We need bankers who will train their
organizations to sell up to a standard and
not down to a price.

Quantity
Equally as important as the quality o f
what we write and say and do is the
quantity. Some people think that selling
is the ability to out talk others. This is
a sad error. Selling is the art o f pleasing
people and the thoughts which please the
most are those expressed in condensed
form.
In the first chapter o f Genesis the story
o f the creation o f the universe is told in
six hundred words. Six hundred words to
tell the story o f the creation of the uni
verse, yet you and I have heard salesmen
use nearer to sixty thousand words to tell
the story o f the creation o f a new” bond
issue or a new life insurance policy. I ask
you which is the more important ?
At the dedication of the battlefield of
Gettysburg there was a gentleman who
talked fo r two and one-half hours. What
he said was a masterpiece o f rhetoric, but
there isn’t one person in ten thousand who
can tell you a word that he said, and there
is not one in one thousand who can tell
you who he was. Following that speaker
was Abraham Lincoln. His talk consisted
o f approximately two hundred and fifty
words. What he said became a mental
endowment fo r the entire American nation.
One o f the reasons why Lincoln’s thoughts
have been remembered is because he ex
pressed them in condensed form. He had
them boiled down. Of course, another
reason is that they stood for an ideal and
that ideal was backed with the spirit of
sincerity.
Our Services

G M A C SHORT TE R M HOTES

available in limited amounts
upon request

G
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eneral

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Executive Office - Broadway at 57th Street - Hew Yor\, H- Y.

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Federal Reserve Bank of St. Louis

OFFICES

P R I N C I P A L

S eptem ber 1933

CITIES

Parenthetically it may be said that one
of the greatest satisfactions you and I
should get from being associated with the
banking business is that each o f our serv
ices stand fo r an ideal. I f we back those
ideals with the spirit o f sincerity in telling
the people in our community what those
services stand fo r we can make a record
in banking which will be remembered.
W oodrow Wilson was once asked how
long it would take him to prepare a ten
minute address and he said, “ Two weeks.”
He was then asked how long it would take
him to prepare one for thirty minutes and
he said, “ One week.” “ Well,” said the
interviewer, scratching his head in amaze
ment, “ Two weeks fo r ten minutes, one
week fo r thirty minutes, how long would
it take you to prepare a talk fo r two
hours?” Wilson smiled and replied, “ I
am ready right now.” “ Ready right now”
to talk fo r two hours but he wanted two
weeks to prepare fo r ten minutes. W e all
know that it is a big job to boil our
thoughts down.
It is one thing to say that the people in
a bank should be able to explain in clear
and concise language the services they

25
have to offer. It is another thing- to teach
them to do it. The solution to the prob
lem is systematic training- in the funda
mentals o f salesmanship as applied to bank
services.
Method of Expression
Now let us go to the base o f the
triangle which deals with the Method of
Expression. I am a firm believer in the
fact that there is only one-fourth in what
you say and three-fourths in the way it is
said. For example, take the words “ good
morning,” which are said thousands of
times every morning, but what a vast d if
ference in their meaning. You can go into
some banks and you will be greeted by a
“ good morning” which will actually make
you feel like putting more punch into life.
You can go into others and they either
grunt at you or say “ good morning” in
such a way as to make you feel like put
ting more punch into them. The same
words— the only difference being in the
way in which they are said.
Back in New Jersey a neighbor o f mine
has three boys. Two of them have finished
their college courses and the third one is
still in college. The first two were always
able to get along on their regular monthly
allowance but this third fellow is always
writing home for more money, more
money, more money. About a month ago
he sent one o f these letters asking fo r more
money. It so happened that his father
was at home when the letter arrived. He
opened it and read with loud and angry
emphasis, “ Dear Parents: W hy don’t you
send me some money f M y board bill is
due, my laundry bill is due, everything is
due! How do you expect your son to
make good at college without m oney?
W on’ t you please send me some money f
The father threw the letter on the table
and shouted, “ Mary, i f that is the way he
is going to ask fo r it, I won’t send it to
him.” Mary happened to be the boy’s
mother. That is where the old man fre
quently gets in Dutch. She calmly walked
over to the table, adjusted her glasses,
picked up the letter and read in a sweet
and gentle voice, “ Dear Parents: Why
don’ t you send me some money f M y
board bill is due, my laundry bill is due,
everything is due. How do you expect
your son to make good at college without
money f W on’ t you please send me some
money f”
By this time the tears were trickling
down the old man’s cheeks and he said,
“ Mary, if that is the way he asked for it,
send it to him.” My friends, there is only
one-fourth in what we say and threefourth^ in the way we say it.
The new era in banking demands that
we use a higher and finer type o f bank
salesmanship.
The importance o f the
building o f confidence and the development
o f new business is more clearly emphasized
today than it has been at any time during

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Federal Reserve Bank of St. Louis

the last thirty years. This is a job not fo r
one man in the bank nor fo r one depart
ment in the bank but a responsibility that
should be shared by every one connected
with the institution. One of the ways for
bankers to shorten that long road back to
increased profits, substantial surpluses,
and increased salaries is to train every
body in the bank in the fundamentals o f
the new bank salesmanship.
In summary may we remind ourselves
that the symbol o f this new salesmanship
is the equilateral triangle. One side rep
resents the quality o f what we write and
say and do. The other side represents
the quantity and the base represents the
Method o f Expression. There is only onefourth in what you say and three-fourths
in the w7ay you say it. “ He profits most
who serves the best.”

3 Reasons W h y
Banks Should A d v e rtis e
(Continued from page 10)
Some one officer within the bank’s or
ganization will be commissioned to take
charge o f the work. He will be chosen
for his ability and qualifications to carry
through a broad contacting undertaking.
It calls more fo r leadership, tact, ability
to secure cooperation and to engender
interest and enthusiasm than fo r ability
to write clever advertising copy. I f he
is a good mixer— makes friends easily—
is more-or-less o f a “ joiner” and takes
an active interest in local organizations
and associations— all the better. But
above all, he must possess ability to prop
erly appraise both individual and group
opinion.

S E R V IN G TH E
MAJOR. INDUSTRIES
O F THE M ID D L E
W E S T ...........
With s p e c i a l i z e d
a bility to intelligent
ly assist s h i p p e r s ,
packers and out-oft o w n banks serving
these interests.
(y k e

LIVE STOCK
NATIONAL BANK
OF CHICAGO
UNION STOCKTCARDS
N orthw estern Banker

S eptem ber 1933

26
Bank directors, once they understand
the purpose and objectives, will approve
and cooperate. All officers should be
subject to call for active service. Every
employe o f the bank can be drawn into
the general scheme o f making the bank
a hub o f community interest development
so that the bank will gain credit fo r its
activities and leadership without seem
ing to “ hog” the spot-light.
Community leadership!
That is a
worthy goal for which your bank must
strive in the years ahead. A public re
lations program is one route which everv
bank may map out and follow.
And if you are still interested in know
ing something o f the set-up, I will out

line the duties o f the bank’s public rela
tions contact man in an article to follow
— and point out the three divisions and
methods o f activities to be followed.

News and Views
(Continued from page 16)
to cope with present conditions. About
20 key men should be fired and replaced
with 12 new men.”
, cashier of
the First National Bank in Bur
lington, tells me that their total deposits
as o f August 20th, were $716,363.30, a
gain since August 1st o f $114,159.93,

o r t im e r

g o o d w in

Financial Statement
of the

National Surety Corporation
VINCENT CULLEN, President

June 30th, 1933
ASSETS
C a s h --------------- ---------------------------------------------Bonds* ------------------------------$4,666,321.46
S to c k s * --------------------------- _ 1,099,212.00

$ 1,027,246.74
5,765,533.46

Premium accounts taken
Over
From
National
Surety Com pany------------$2,327,079.11
Less:
Reserve originally
esta b lish ed ----------------727,633.62

1,599,445.49

Premiums in course of collection
National Surety Corporation____________
First Mortgages and Real Estate__________
Accounts R eceivable_______________________
Home Office B uilding---------------------------------

1,171,367.15
656,662.51
349,821.12
1,000,000.00

LIABILITIES
Reserve for Unearned Premiums__________
Reserve for Claims--------------------------------------Reserve for Commissions andExpenses____
Reserve for Additional Overdue Premium
A c c o u n ts -----------------Reserve Paid-In for Claims and other con
tingencies ------------------------------------------------C a p ita l---------------------------------------------------------Surplus----------------------------------------------------------

Id e n tifie d

$ 1,587,408.21
385,279.50
680,645.93

A certain famous motor car manufac
turer advertised that he had put a car to
gether in seven minutes. The next eve
ning he was called on the phone at dinner
time and asked if it were so.
“ Yes,” was the reply. “ W h y?”
“ Oh, nothing. But I believe I ’ve got
the car.”

500,000.00
4,416,742.83
1,000,000.00
3,000,000.00
$11,570,076.47

Northwestern Banker

September 1933

R. W ESSLING, president o f Wess, ling Services, Des Moines, was in
Minnesota recently and stopped to call at
the First National Bank o f Starbuck and
parked his car in front o f the bank, but
before he could get out of the car he
noticed a woman who came running out
o f the bank and down the street and was
followed a moment later by a bandit with
a mask over his face, an automatic in his
hand and a package under his arm. The
bandit ran directly toward Mr. Wessling’s
car and he thought that he would be re
quired at the point o f a gun to do a little
chauffering fo r him, but the bandit ran on
past and turned the corner. About a sec
ond later another bandit came out o f the
bank and just as he came in front o f Mr.
Wessling’s car, dropped dead from bullets
fired by the officers o f the bank who had
pursued the bandit into the street.
I f you were sitting in the car under
similar circumstances what would you have
done ?
Obviously the crowd seeing a car with
a license from another state would think
that the driver was an accomplice and
would let the bullets fly in that direction.
Mr. Wessling with his usual quick and
active mind averted disaster by opening
the door o f his car, stepping outside and
raising his arms above his head. With the
angry mob upon him and four or five guns
pointed at his head he was marched back
into the bank where he said “ good morn
ing” to E. S. Olson, cashier o f the bank,
who immediately recognized him. This
was once when the entire banking force
“ welcomed” him into the bank with “ open
guns.”

$11,570,076.47

*These amounts represent the actual market quotations as o f June 30, 1933.

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

with total resources amounting to $843,260.77.
This is a fine showing fo r this new
institution at Burlington, and reflects the
capable management o f its officers and
directors who are : F. Albert Klein, chair
man o f board; A. J. Benner, president;
Charles Irving Danforth, vice president;
Mortimer Goodwin, cashier ; H. D. Banta,
Norval Prugh, G. D. Parker, Sam Strause,
John H. W itte, Jr.

Precocious
“ D'id you give our daughter that copy
o f ‘What Every Girl Should K now ?’ ”
asked Dad.
“ Yes,” replied Mother, despondently,
“ and she’s written a letter to the author
suggesting a couple o f dozen corrections
and the addition o f two new chapters.”

Insurance

A N ew Service
That Bankers A ppreciate
HE Des Moines Branch o f the
United States Fidelity and Guar
anty Company has instituted a new,
free service to banks and bankers in the
state o f Iowa. Many bankers have made
no study o f insurance coverage in con
junction with their actual needs, with
the result that coverage is often dupli
cated while other needed protection is
entirely overlooked. Believing that a
careful survey o f a bank’s insurance cov
erage as compared to its present-day
needs will be beneficial to the bank, the
Des Moines branch is now prepared to
make such a survey, without obligation
on the part o f the bank, but as a matter
o f service and with the primary object
o f satisfying the bank that needed pro
tection is actually carried, or if not,
pointing out the lack of coverage and
how it can be supplied.

It can readily be seen that a survey
o f this nature may be o f great value—
certainly it can do no harm. Forms o f
coverage are constantly changing, rates
are advancing, so that what formerly
might have been ample protection may
now be inadequate, or may even be avail
able in some other form o f greater ad
vantage, at no increase in cost. Dupli
cation o f coverage is not unusual, where
careful attention has not been given, nor
is it uncommon to find that certain cov
erage which a bank has relied upon, is
lacking.
W ith all this in mind, and with the
thought that bankers would welcome a
■check-up or survey by someone qualified
to make it, J. Dillard Hall, manager o f
the Des Moines office, U. S. F. & G. Co.,
has prepared a very comprehensive an
alysis chart of available coverage for
banks, which has already met with much
favorable comment. C. H. Stephenson,
cashier, Bankers Trust Co., Des Moines,
gives his opinion o f the chart in the fo l
lowing w ord s:
“ I have just had an opportunity to
■examine the Bank Insurance Analysis
Chart which you have prepared, and I
am taking this opportunity o f telling
you that I think your idea is an excellent
one, and that this chart will fill a long
felt want on the part o f banks and bank
ers o f this state.
“ Any bank which will use this chart
In making an analysis o f the various

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

J. D illard H all, M a n a g e r o f
the Des M oines O ffic e o f
the U nited States F id e lity &
G u a ra n ty C o m p a n y, O ffe rs
a C om prehensive Insurance
A nalysis C h a rt o f A v a ila b le
C o v e ra g e fo r Banks

types o f coverage now carried by the
bank with those which are available to
it will undoubtedly see that in some in
stances they are overinsured and in other
instances underinsured in certain lines.
I think that this service will prove to be
o f outstanding value to the banks o f this
state.
“ I commend both yourself and your
company in rendering this valuable serv
ice to the banks o f Iowa.”
H. G. W ilson, cashier, Iowa-Des
Moines National Bank & Trust Company,
Des Moines, says:
“ I have looked over and checked very
carefully the analysis chart o f bank in
surance which you left with me several
days ago. I am sure this chart will be
a great help to bankers in handling their
various kinds o f robbery and burglary
insurance and other insurance that the
majority o f the banks carry. This serv
ice which you are giving is the only serv
ice o f this kind that has come to our at
tention and I think the U. S. F. & G. is
to be complimented on developing this
splendid idea.”
Mr. Hall has notified the banks in Iowa
that this service is available to them, and
they will, undoubtedly, take advantage
o f it. W ithout endeavoring to further
the business o f insurance, but looking
at it solely from a standpoint o f prac
ticability, it is evident that the idea of
Mr. Hall as presented by this chart is
well worth any banker’s earnest consid
eration. A service o f this nature is not
only practical— it evidences a spirit of
progressive thought and effort which is
indeed commendable and which merits
the support o f the banks in Iowa in equal
degree.

A t Y o u r Service
A t the Fair
I f you “ do” A Century o f Progress in
its entirety, you will have walked past
some 82 miles of exhibits, even a portion
o f which is a tiresome daily stunt.
The Continental Casualty-Assurance
Companies decided that here was an opportunity to perform a real service in the
interests o f Fair visitors’ comfort. Forth
with, this multiple line insurance organiza
tion established what has been termed one
o f the most unusual W orld’s Fair service
and information bureaus to be found in
Chicago.
These quarters are located on the ground
floor level o f the Standard Oil Building at
910 South Michigan Avenue, where the
Continental occupies Home Office space o f
four floors.
A gracious hostess is in charge o f the
Bureau, and she has two assistants, one a
trained nurse and the other a young man
from the Philippine Islands. Should you
acquire a blister at the Fair or pick up
a stray bit o f debris in your eye, the
nurse will skillfully render first aid—gratis. The Filipino makes it his duty to
see that you get something to read, or some
writing material or a light for your smoke.
I f the visitor wishes, he can shift a lot o f
tedious tasks off onto the personnel o f the
Continental Bureau. They will make res
ervations on all forms of transportation
fo r you— air, rail, water, Pullman, or bus.
Or perhaps you’ll like a new route planned
fo r you on your trip home, in case you are
driving. Say the word and in a few min
utes you will be provided a map marked
with proposed new routes.
This service is available through iden
tification cards. I f readers of T h e N o r t h
w e s t e r n B a n k e r will address the office
o f that publication, in Des Moines, a card
entitling the holder and his family to the
services o f the Continental Burean will be
issued to him immediately.

N a tio n a l Surety
S ta tem e n t
The June 30, 1933, financial statement
o f National Surety Corporation, made
public by Vincent Cullen, president, is
receiving much favorable comment in
insurance and financial circles.

Northwestern Banker

September 1933

28
National Surety Corporation started
business on April 29, 1933, following
the appointment o f George S. Van
Schaick, Superintendent o f Insurance o f
the State o f New York, as rehabilitator
o f National Surety Company, and the
June statement reflects the progress
made by the corporation in its first two
months. On June 30th the corporation
had cash o f $1,027,246.74, an increase
in two months o f $373,242.60. Bonds
and stocks appreciated over $600,000.00
in the tAvo months, and are shown in the
statement at market value of $5,765,533.46. The corporation took over from
the National Surety Company outstand
ing premiums o f $4,035,059.20. Some of
the premiums have been collected and
those uncollectible have been charged

off, reducing this item as o f June 30th to
$1,599,445.49 with a reserve of $500,000.00 carried in the liabilities against
possible further shrinkage.
In commenting upon the affairs o f the
corporation, President Cullen pointed out
that its assets were highly liquid and that
80 per cent o f its portfolio consisted of
bonds. H e stated that during M ay and
June the corporation had written more
than $1,500,000 in net premiums and that
the volume o f neAV and renewal business
Avas most satisfactory. H e stated that
the loyal agents and brokers, nationwide,
Avere chiefly responsible fo r this excellent
showing, and that the corporation had
been approved by the largest banks, rail
roads and financial institutions in the
country.

Largest
C o n ve n tio n Party
What undoubtedly will be the largest
convention party Northwestern National
L ife o f Minneapolis has ever had will
assemble in Chicago from August 22d to
25th at the Stevens Hotel and A Cen
tury o f Progress fo r four days o f instruc
tion, inspiration, and entertainment.
Final figures released last week showed
more than 200 fieldmen, wives, general
agents, and managers qualified to attend.
Considering the unusually difficult busi
ness conditions which existed through
out the 18 months o f the convention con
test, it is a remarkable showing to have
so many qualify fo r the convention, al
though the qualification standards Avere
just as high as in normal times.
The W hite & Odell agency o f Minne
apolis with 33 representatives has a larg
er number o f fieldmen qualified than any
other unit in the agency organization.
Tied fo r second honors in this respect
are the Texas State Agency, Houston,
and A. W . Crary Agency, Fargo, with
10 each. H. 0. Wilhelm & Co., Omaha,
has eight, and the Truman H. Cummings
agency, Detroit, seven.
Plans fo r the convention are rapidly
rounding into shape and indicate that a
bang-up program is in store for those
who attend, with a Century o f Progress
adding something that no previous con
vention has been able to offer.

The Cash Value
o f S a fe ty

■

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C E N T R A L LIFE
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Northwestern Banker

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

September 1933

m
I
_

>jf
m

While the most important phase o f the
accident problem is obviously the unnec
essary toll o f deaths and injuries, there
is another phase that should not be over
looked— the economic one.
Every accident costs money. Every
accident places a burden upon the aver
age pocketbook. And the total o f costs
fo r a year runs into many millions. A c
cident prevention, as a result, pays cash
dividends.
In industry it has been the inevitable
experience that a low accident rate is
accompanied by higher efficiency. When
a great many accidents occur in an in
dustry, the morale o f workers is seriously
impaired. There is a distinct slowing
down in their operations. There is dis
content— that most potent o f all disturb
ers. And there is very likely a red-ink
showing at the end o f the month or the
quarter.
During the past decade industry has
made fine strides in safety. The roster
o f major business which operate for a
year at a stretch with hardly an acci
dent o f importance, is constantly grow
ing. And those are the businesses which
we know best— which are most stable,
most efficient and most profitable.
In the future, safety can earn its

29
greatest dividends on the highways. W e
complain because casualty insurance
rates go up— and we overlook the fact
that they went up because accidents in
creased in number and severity and the
financial drain on insurance companies
grew accordingly.
Automobile rates,
like home and industrial accident rates,
are in the hands o f the public, which in
creases or decreases the hazard on which
the rate is based.
Every American should resolve to help
alleviate tragedy and at the same time
fatten his pocketbook by being a safer
citizen.

B a n k s -------A n d the Public
(Continued from page 20)
fo r the gratification o f the officers and
directors. It really can be effective only
when it is properly focused, is a true
mirror of the bank and its services, and
is coordinated with every other selling
effort o f the bank. Public relations must
be aimed and controlled; it must be a con
tinuing jo b ; it must be considered as in
cluding every point at Avhich the bank
touches the public, whether it be face-toface, letters, literature, paid advertising,
or participation in some civic or trade
effort. All may be turned to good account
if they are considered in the light o f a
comprehensive policy.
“ Public Relations” is just as much a
business as loaning or trust administra
tion, and requires as distinct a type o f
mind and as adequate training. It deals
not with figures and facts, but with human
beings. It is not exact— it is constantly
changing. The public relations man often
senses things that cannot be proven. His
work is germane to every department, and
yet cannot be under any department, for
his is an interpretive task. His inspira
tion within lies in constant contact with
the chief executives o f the bank. The
proper conception of his job is to inter
pret the bank’s personality, its policies,
and its services to the pu blic; to interpret
the attitude o f the public to the officers
o f the bank; and to see that employes are
taught how to handle the public in such
a way as to maintain thhe impressions the
bank wishes to make. This job requires
an understanding o f people, rather than
technical banking training. The man who
does it should be carefully selected, and
then given as much authority in his line
as the head o f any other major bank
activity, fo r it is a major consideration
and a senior effort.

" O

a n

A. B. A.

By H ARRY WILKINSON,
Publisher, The Chicago Banker

N ORDER that the General Counsel o f
the Association may in the future bear
the same subsidiary relationship to the
Executive Manager as the Deputy Man
agers and other officers and employes of
the Association:
“ T h e words, ‘a General Counsel’ are
stricken from the first sentence o f Article
V II, Section 8, of the Constitution, bear
ing the caption, ‘ Officers and Employes’
so that it will then read:
“ T h e Executive Council at the meeting
fo r organization provided fo r in Section 7
o f this Article shall elect an Executive
Manager and a Treasurer, who shall be a
coordinate officer.”
T h e quoted paragraphs above are
“ lifted” from the columns o f the A B A
Journal, the italics being supplied to
render the meaning of the constitutional
amendment a little more obvious.
T op paragraph explains the desire o f
the author o f the amendment to place the
“ General Counsel” “ in the same subsidiary
relationship to the executive manager as
the Deputy Managers and other officers
and employes” o f the A BA . “ Subsidiary
relationship” is given in Standard dic-

i l l

tionary as “ assisting in an inferior cap acity.”
T h e late Judge Paton was able to de
feat all former attempts to reduce his
department and his legal opinions to the
rank o f an inferior advisor. No dictation
nor revision o f his legal opinions was
possible, fo r he was recognized in the con
stitution as a “ coordinate” and not as
an inferior advisor.
A fter the Chicago convention the treas
urer will be the only coordinate along with
the executive manager, but his powers are
very limited whereas the powers and func
tions o f the executive manager require the
mention of his title in the constitution and
by-laws just forty-six times.
T h e em “ shall have the authority to
employ or remove” everybody from deputy
managers down to “ such officers and em
ployes as he shall deem necessary.” All, '
o f course, to be approved by the admin
istrative committee, mostly taken fo r
granted.
H e shall have “ charge of the property
o f the association,” and “ shall audit and
approve all bills and items of expense,”
including expenses o f “ officers thereof.”

i t

Dec.
31,
1932

(
{

Cash and U. S. Gov't Bonds

(

10 .9% of Assets

June
30,
1933

Cash and U. S. Gov't Bonds

!
I

$6,507,004

$5,131,177

13 .6% of Assets

r th w e ste r n

t io n a l

L IF E IN S U R A N C E C O M P A N Y

For G ra n te d

S T R O N

G—

M îïm e a p o lis .M in n . — L I B E R A L

Geology P r o f.: “ What kind o f rock is
this*?”
Student: “ Oh I just take it fo r
granite.”

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

N orthw estern Banker

S eptem ber 1933

30
He is the “ chief budget officer o f the asso
ciation,” and “ in his discretion” may “ ap
prove, disapprove or alter any item de
sired” by any subordinate.
T h e above amendment cutting out the
“ General Counsel” as among the coordi
nates kills all the powers and independ
ence retained with difficulty by the late
Thomas B. Patón. He was “ under the
direction of, and shall report to, the execu
tive council” and “ make an annual report
to the convention.”
T h e constitution gave the Judge “ cus
tody and responsibility for the documents
records and property pertaining to his
office,” and he was guaranteed to have

“ authority to employ and to remove legal
and clerical assistants and to incur ex
penses to the limit o f the appropriation.”
T h e Judge evidently wrote this section
o f the constitution himself and he acknowledged no over-authority by any except
the administrative committee and the ex
ecutive council itself. In the conduct o f
his office and in the legal opinions deliv
ered his department rated 100 per cent.
But that day is over. No real “ General
Council” will consent to serve as advisor
“ in an inferior capacity.”
T he word “ subsidiary” has no other use
in the proposed amendment except as
defined in the dictionary. “ Same relation

Your Representative at the
Stockyards
The Live Stock National Bank is your logical representa
tive at the Sioux City stockyards because this institution
is in the same building as the offices of the Commission
firms, and is also adjacent to the Sioux City business
district.
Because of this strategic location this institution gives
prompt care and attention to the disposal of your livestock
and other transactions.
Our 38 years of specialized service assures prompt and
efficient handling of your livestock items.

Live Stock National Bank
S IO U X C IT Y , IOWA

ship” otherwise would have meant just
the same as “ same subsidiary relation
ship.” Now a word about the sole re
maining coordinate except the executive
manager.
“ T he treasurer shall pay out moneys
only upon voucher checks signed by the
Executive Manager.” “ Before any vouch
er check shall be signed” it “ shall be in
vestigated and audited by the Executive
Manager.”
I f Francis Marion Law can find out
who wrote this preposterous document, the
A B A constitution, he will have an answer
to his oft-repeated inquiry as to “ Who
runs the American Bankers Association?”
T h e public relations commission was
removed in practically the same way the
general counsel is being obliterated. The
Public Relations body was beheaded at
White Sulphur without a word o f warn
ing by the administrative committee, the
council concurring. That it had been pre
arranged it was noted that the spring
meeting program contained no mention of
public relations commission.
M aybe there were other reasons, but
note the chief function o f the commission
as theretofore set forth in the constitution :
“ It shall also have supervision o f the
official publication.” (A B A Journal), but
in one o f the forty-six delegations o f power
the executive manager was given “ direc
tion” o f the A B A Journal, “ under the
supervision o f the Public Relations com
mission.”
A ll o f the above is indicative of the
“ trend o f the times,” but is meant to ex
plain peculiar happenings and not to slam
at any individual. I f the membership of
the American Bankers Association want
a one-man organization one more click of
the constitutional amendment device and
it is done.
T h e present proposed amendment, as
above, will be up before the convention
at Chicago, the “ yes” boys having done
their part at Augusta last spring. It’s
not so easy to tell the fellow who fixes
the budget, audits and O K ’s the expense
accounts and signs the checks just where
he gets off. Read all o f the above para
graphs over again lest you didn’t see what
is between the lines.

Affiliated with Northwest Bancorpor ation
“ TH E B A N K AT TH E Y A R D S ’’

O FFICERS
A . G. Sam, President
C. L. Fredrickson, V ice President
W . G. Nelson, A sst. Cashier

Northwestern Banker

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

September 1933

M. A . W ilson, Cashier
W . C. Schenk, A sst. Cashier

A tourist was enjoying the wonders of
California as pointed out by a native.
“ What a beautiful grapefruit!” he said,
as they passed through a grove o f citrus
trees.
“ Oh, those lemons are a bit small, owing
to a comparatively bad season,” explained
the Californian.
“ And what are those enormous blos
soms?” asked the tourist.
“ Just a patch of dandelions,” said the
Californian. Presently they reached the
Sacramento river.
“ Ah,” said the tourist, grasping the
idea, “ somebody’s radiator must be leak
ing.”

31
tion with $25,000 capital. H. Loonan,
Eden, and Thomas Loonan and J. Holmes
o f W aterloo, are the incorporators. It
will be called the Sioux Valley Bank.

South Dakota
Bank News

N ew C heck Law

Officers South Dakota Bankers
Association
P resid en t........................E. R . H eaton
Yankton
V ice P resid en t............. L. M. Larsen
W essington Springs
E . R. H E A TO N
President

Executive M a n a ger. Geo. A. Starring
Huron

Reduce Cash
More than 80 per cent o f South Dakota
banks which are not covered by blanket
robbery insurance or Avhich do not have
protective devices approved by the under
writers, have signed an agreement with
the South Dakota Bankers Association
that they will reduce their exposure o f
cash on the counters 85 per cent. These
banks have been supplied with a warn
ing card which requests customers o f the
banks not to expect too quick service
for a request for any unusual amount of
cash.
These banks are keeping most o f their
casli and securities with their city cor
respondents or with the Federal Reserve
Bank and a large part of the balance is
kept under time lock all day during bank
ing hours,
This agreement is in line with new re
strictions imposed by the insurance com
panies which provide that they will not
pay losses incurred in a holdup beyond
a 15 per cent exposure of cash unless
the banks are equipped with tear gas
or bandit barrier or unless the cash is
kept under time lock and when time
locks are not operating the banks must
have two armed guards at open doors
or keep the doors locked.
This will be a great inconvenience to
the public at times but the banks are
obliged to comply with the regulations.
The losses from holdups this year should
decrease anywhere from 50 to 75 per
cent in South Dakota.

N ew Bank
Banking service was again made avail
able to the people o f Sisseton with the
moving to this city o f the First National
Bank o f W hite Rock. The new bank is
located in the Citizens Security Building
and is operating under the name o f the
Roberts County National Bank o f Sisse
ton.
Officers o f the bank are John L. Cald
well, president ; J. W . Powell, cashier,
and F. H. Kouba, assistant cashier. Mr.
Kouba is in active charge o f the insti
tution for the present, with the assist
ance o f Miss LaVanche Polifka. Mr.
Powell, the cashier, is in Washington,

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

G E O R G E A. S T A R R IN G
Executive Manager

D. C., handling some special assignments
fo r the national banking department but
he will complete his work there within a
couple o f weeks, when he will move to
Sisseton and take over active manage
ment o f the bank.

Burglar E quipm ent
Holdup men will have no chance should
they be foolish enough to attempt to
rob the First National Bank of Parkston.
It has installed holdup and burglar proof
fixtures that are said to be the last word
in that line.
A solid steel partition
across the banking room completely shuts
off the bank officers from the public.
The glass panels above the fixtures
are o f bullet-proof glass, and sharp
spikes at the top prevent the scaling of
the partition from the outside or from
the customer’s room. Six protected loop
holes allow bank officials the opportunity
of shooting from the inside without in
jury from return shots.

Reorganized
A deal has been completed recently for
reorganization o f the Farmers and Mer
chants State Bank, o f Scotland. Paul S.
Cobel, o f Sioux Falls, has a controlling
interest and announces plans, when reor
ganization is completed, to obtain a na
tional bank charter and to operate the
bank under the Federal Reserve System.
Martin Schafer, who has been asso
ciated with the Security State Bank at
Delmont, is in charge o f the Scotland
bank now. C. Van Cura, former assist
ant cashier and Miss Luetta Dravis, book
keeper o f the Scotland bank, before it
was closed, will continue with the new
organization.
Former officers o f the bank, who are
retiring from the organization under the
new regime, include: C. Weidenbacli,
president; G. C. Weidenbacli, cashier;
G. Hertz, director; E. J. Magstadt, di
rector.

N ew Bank
Hudson is to have a new bank. A r
ticles o f incorporation have been filed
by three men to start a financial institu

Thirty days in jail and a fine of $100
may be the punishment for writing bad
checks in South Dakota, after 90 days.
A t that time the new state law, passed
at the Pierre special session will go into
effect, having been signed by the gover
nor.
The law provides: “ Any person, who
with intent to defraud, shall, for a pres
ent consideration, make or draw or utter
or deliver any check, draft or order fo r
the payment of money upon any bank
or other depository, knowing at the time
of such making, drawing, uttering or de
livery that the maker or drawer has not
sufficient funds in or credit with such
bank or other depository for the pay
ment o f such check, draft or order in full
upon its presentation, shall be guilty of
a misdemeanor, and upon conviction
thereof, shall be fined not more than
$100, or imprisoned not more than 30
days or both.
“ The making, drawing, uttering or de
livery o f such check, draft or order as
aforesaid, shall be prima facie evidence
o f intent to defraud and as against the
maker or drawer o f knowledge of in
sufficient funds in or credit with such
bank or other depository.”

Prevent H old u p s
Bank holdups are to be discouraged by
the Peoples State Bank of De Smet,
through installation o f an apparatus in
vented by a South Dakota banker, T. J.
McGinity, o f Lebanon.
The installation was completed recent
ly and in use, consisting in a steel barred
vestibule to the bank entrance which acts
as a trap through which visitors to the
bank must pass, being admitted on recog
nition by the clerk on duty at the window.
Strangers must use a telephone pro
vided for that purpose and identify them
selves before they are admitted. Suspi
cious characters can be confined in the
vestibule at will o f the force.

H om e Loan Branch
The Rapid City branch office of the
Home Owners’ Loan Corporation is now
in full swing, opening in an office on the
third floor o f the court house.
George Crilly is manager of the branch
office, which has charge of all counties
west of the river except Gregory. Tem
porarily, his office also has charge of sev
eral counties east o f the river, Hand,
Potter, W alworth, Sully and Hughes.
Designed primarily to aid home owners
in financial distress, about 120 applica
tions were made at the office during the

Northwestern Banker

September 1933

32
first two days that it was open, and in
addition many more application blanks
have been mailed to inquiring persons.

G o o d C o n d itio n

The report along with those o f other
states, will be used by the federal reserve
board in analyzing general banking con
ditions throughout the country.

As part o f a nationwide banking con
dition survey being conducted by the
federal government, the state banking
C ashier Resigns
department has prepared a statement
W . M. Roberts, who has been cashier
showing the financial status of all South
N o O ff-S e t
o f the Bank o f Lemmon fo r the past two
Dakota state banks which are not mem
years, has resigned his position and is
O
n Checks
bers o f the federal reserve system.
accepting a position with one o f the fed
F.
R. Strain, assistant superintendent Wheat producers who qualify fo r bene
eral government agencies.
of banks, said the report, which was re
fit payments under the wheat acreage ad
E.
J. Morris, o f Aberdeen, a former quested by the ninth federal reserve bank
justment program will receive their checks
resident o f Lemmon, has taken a posi
o f Minneapolis, showed South Dakota
without any off-set fo r governmental in
tion with the Bank o f Lemmon. Mr. Mor
banking institutions to be generally in
debtedness, Secretary Wallace says.
ris has had considerable banking expe
excellent condition. H. D. Sharratt, fed
The legal department of the Agricul
rience, having been an examiner fo r the
eral reserve bank examiner told state
tural Adjustment Administration has ad
South Dakota Banking Department for
officials the report was one of the best
vised the Secretary that governmental
the past fourteen years.
in the ninth federal reserve district.
liens on the wheat crop do not require
benefit payment checks to wheat farmers
to be made jointly payable to any other
governmental agency.
Hence wheat
checks will be issued directly to wheat
farmers.
The difference in methods of handling
wheat and cotton checks arises because of
a legal distinction concerning govern
mental indebtedness in reference to bene
fit payments in the two cases.
In the case o f cotton, part of the secur
ity o f seed, feed and other loans from
the Farm Credit Administration is de
stroyed when farmers who sign up in the
cotton campaign plow under a portion of
their crop. Hence checks to cotton farm
ers having such loans will be made jointly
payable to them and the Farm Credit
Administration as announced Tuesday by
Governor Henry Morgenthau, Jr.
In the case o f wheat, however, the con
tract with the Agricultural Adjustment
Administration does not require farmers
to destroy any portion o f their crop.
Hence the security o f government loans
in the case o f the wheat farmers is not
in any way disturbed by their contract.
Therefore, Secretary Wallace said, the
checks to wheat farmers who qualify for
benefits will be made out to them, and be
sent directly to them, and not be made
jointly payable to the farmers and the
Farm Credit Administration.
Essentially there will be little differ
ence in the method o f payments since in
both cases, so far as strictly governmental
indebtedness of farmers is concerned,
farmers may use the proceeds as they see
fit. The Farm Credit Administration is
asking that both wheat and cotton farmers
apply as much o f the proceeds to their
debts to the government as they can. But
there is no compulsion about it in either
case, except that as to cotton where private
interests are involved in the governmental
claim, the division of the proceeds will be
the subject o f negotiation. The difference
IN S I O U X C I T Y
will be that in the case o f cotton liens, the
checks will be made jointly payable to
A . S. Hanford, President
Frederick R. Jones, V ice Pres.
farmers and the Farm Credit Administra
Fritz Fritzson, Cashier
tion whereas wheat payments will not.

HE M E A S U R E

OF V A L U E

of a CITY CORRESPONDENT
¡s its ability and desire to serve.

The facilities of this bank are com
plete for the prompt handling of

any business.

W e would like to prove both

our a b ility and desire to serve
you in Sioux City.

IRST NATIONAL BANI/

N orthw estern B anker

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He that cannot obey, cannot command.
•
— Benjamin Franklin.
S eptem ber 1933

Stephens A c c e p ts

Nebraska
Bank News
Officers Nebraska Bankers
Association

R. H . B A R B E R
President

P resid en t........................ R . H . B arber
Paxton
Chairman Executive C ou n cil..........
.................................. H . A . Schneider
Plattsmouth
T rea su rer................. C. F. Brinkm an
Omaha
S ecreta ry.................. W m, B . Hughes

Omaha

W M . B. H U G H E S
Secretary

Group Two Meets in Fremont

EM BERS o f Group 2 o f the Ne
braska Bankers’ Association, meet
ing in Fremont, adopted resolutions urg
ing that the postal savings system be abol
ished, opposing legislation permitting the
growth o f branch and chain bank systems,
and urging repeal o f the check tax. The
annual meeting was held at Hotel Path
finder.
Officers who served during the past year
were re-elected. They are P. J. Ternus,
cashier of the Farmers’ State Bank of
Humphrey, president; P. W . Shonka, Jr.,
assistant cashier o f the Schuyler State
Bank, secretary, and M. M. Taylor, Co
lumbus; L. R. Coufal, Howells, and R. I.
Stout, Tekamah, members o f the resolu
tions committee.
In the absence o f Ternus, J. M. Soren
sen, vice president o f the Stephens Na
tional Bank o f Fremont, presided. He in
troduced William Edward Johnson, o f
Chicago, president of the firm o f Johnson,
Reed and Wohlwend consulting bankers,
following the address o f welcome by J. D.
Milliken, vice president o f the Fremont
National Bank.
Mr. Johnson expressed his opinion that
the guaranty system enacted this year is
uneconomical in that it sets no tax to col
lect the money, but makes provision for
assessments when banks fail. When banks
fail is the time others are the least able
to pay, he stated. He thought a tax
should be paid and that this should come
from depositors, who really obtain the
benefits from a guaranty system.
Wm. B. Hughes, secretary o f the Ne
braska Bankers’ Association, was intro
duced and devoted some time to a discus
sion of the new banking legislation— both
state and national— and explained the new
corporation tax. He cautioned the bank
ers present regarding the ruling o f insur
ance companies on burglary and robbery
insurance.
Dan V. Stephens, president o f the
Stephens National Bank was introduced
and stated that the bankers of the various
communities could be o f great service to
their communities in cooperating with any
movement concerning public works. He

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said that the public works board for Ne
braska would listen to any and all propo
sitions submitted and would lend every
cooperation where they thought the p ro j
ect was proper and beneficial.

40 H o u r W e e k
Lincoln banks, through the Lincoln
Clearing House Association, have adopted
a 40-hour week in compliance with the
national recovery act. The new program
became effective August 1st.
Both banks and trust companies will be
open to the public shorter hours. The
banks will be open from 10 to 2 o’clock on
week days, instead o f from 10 to 3.

Enlarge Space
Changes are to be made in the Hastings
National Bank Building that will provide
more office space and more privacy fo r
officers, more working room for employes
and at the same time enlarge the lobby and
provide more door openings fo r patrons
entering and leaving the institution.
Plumbers began work in the basement
recently, but a large part of the interior
work will be done during the Labor Day
holiday and all will be completed by the
time the bank opens on Tuesday, Septem
ber 5th, the day following Labor Day.

Date Extended
A four months’ extension o f the time
limit hitherto set fo r state banks operat
ing under restrictions in Nebraska to get
back into 100 per cent operating condition,
placing the date ahead from September
1st to January 1st, is announced by State
Banking Director Luikart.
In order to receive the additional grace
period, however, banks must show some
improvement in their affairs within the
period originally fixed. A half dozen or
more, Luikart said, will probably be un
able to do this, and these will be closed
about September 1st. There will be some
additional suspensions at the end o f the
year, but how many cannot be foretold
at this time.

Dan V. Stephens, has had a message
from President Franklin D. Roosevelt
notifying him o f his appointment as a
member o f the Nebraska advisory board
o f the federal public works administration
and at once wired his message of accept
ance.
Following is the message he sent to the
President:
“ Replying to your wire o f July 26th, I
greatly appreciate the honor and oppor
tunity o f service to you, the state and
nation in accepting appointment on board
o f public works,”

Loan Bank O pens
The Federal Home Owners Loan Bank,
Lincoln, did a “ land office” business the
first day o f its operation. Before the
office had been open more than three hours
there had been 125 applications for loans
o f which, however, only 60 per cent were
actual “ distress” loans.
Don Wächter, head o f the bank, said
the distress loans, that is, loans to those
who were in immediate danger of fore
closure, would be handled first and that
others should wait until later before filing
applications.

H eads C o m m itte e
D. P. Hogan, president of the Federal
Land Bank o f Omaha, has accepted the
chairmanship o f the Chamber of Com
merce agricultural committee, made vacant
by the resignation o f Carl R, Gray, presi
dent o f the Union Pacific.

V isit " F e d " Banks
J. J. Thomas, Nebraska member of the
federal reserve board, and George R.
James, another member o f the board, left
Washington, D. C., fo r a “ swing around
the circle” visit to reserve banks in four
cities.
The two members will inquire into the
work o f the banks in Chicago, Kansas
City, St. Louis and Dallas, confer with
heads o f the banks on the financial situa
tion and generally investigate the present
status o f the system.

O n C . o f C . C o m m itte e
Alvin E. Johnson, vice president o f the
Livestock National Bank, has been ap
pointed chairman o f the revenue commit
tee of the Omaha Chamber of Commerce
fo r the ensuing year, it was announced
recently by Walter F. Cozad, chairman of
the chamber’ s executive board.

From C o lo ra d o
W . F. Nicholson, resident partner in
Colorado Springs, Colo., o f Boettcher,
Newton & Co., investment banking house
with headquarters in Denver, and M. R.
Glaser o f Rosenbaum Bros., Chicago grain

Northwestern Banker

September 1933

34
concern, were in Omaha recently for the
formal opening o f the new enlarged Omaha
offices of Boettcher-Newton on the second
floor of the Omaha National Bank Build
ing.

damus suit if necessary to gain access to
the records.
Governor Bryan backed Luikart with
the statement it would be an insult to the
courts winch appointed the banking direc
tor as receiver to let Price look over the
receivership division books.
About two years ago, attorneys for
Clarence Bliss tried by a replevin action
to get control o f bank receivership books
when he left the banking department office.
He was receiver fo r a number of banks.

C o rre s p o n d e n t
Or. Leo R. Beattie has been asked by
Bert Waddell, Land Bank Commissioner,
to serve as his correspondent for Keya
Paha county, and has accepted.
Dr.
Beattie will close all approved loans made
in this county. The commissioner loans
will be appraised by Federal Land Bank
appraisers. It is expected that several
new land bank appraisers will soon be
appointed in north Nebraska, and the
work will then rapidly go forward.

U n re stricte d
T wo more Nebraska banks opened for
business recently without restrictions mak
ing a total of 255 unrestricted.
They are the Elyria State Bank and the
Stromsburg Bank. Both were reorgan
ized by stockholders.
At the same time the exchange Bank of
Bladen, which had been operating on a
restricted basis and in process o f liquida
tion since March 3, 1933, was taken over
by the state department o f banking for
financial liquidation.

H om e Loan A tto rn e y
F. M. Deutseh, prominent Norfolk law
yer, has been named by Charles Smrha,
state manager, as attorney fo r the Nor
folk branch of the Home Owners’ Loan
Corporation in Madison county. These
appointments were announced Wednesday
by L. P. Pasewalk, manager for the Nor
folk branch.
P. E. McKillip o f Albion is district
counsel under the Norfolk branch.

Director Luikart o f the state banking
department denies that he has ordered
building and loan associations not to
accept bonds o f the new federal home loan
bank.
“ That is not true,” he said. “ Building
and loan associations have asked if they
might accept home loan bank bonds in
payment o f loans made by them. I have
told them they may do so but that the
bonds must be taken at their market value
and not face value. These bonds are likely
to vary greatly in price from time to time
and I don’t see how I can arrive at any

A court contest over the right o f State
Auditor Price to make an examination o f
the Nebraska banking department seems
imminent.
E. II. Luikart director o f the banking
department said its receivership division
is under court orders and a state official
cannot order an investigation of it.
Price asserted he would bring a man
:xx______ j>ac

duc

ix k:

duc

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“

FEED LOT LOANS
Given Special Attention
« •

LIVE STOCK NATIONAL BANK
O M A H A
T HI S

BANK
DUC

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HAS

AFFILIATED
DUC

September 1933

C ondem n Postal Savings
Resolutions urging the abandonment of
the postal savings system as a harmful
deterrent to private banking are expected
to be passed at the convention o f the Ne
braska Bankers Association in Omaha
November 15th and 16th.
Similar resolutions have been passed by
the seven district groups composing the
association.
Nebraska bankers, according to the ex
pressions from the seven districts, contend
that the postal savings system is detri
mental to the welfare o f the banking struc
ture o f the nation, and that it is impossible
fo r private bankers to act in the interests
of their community so long as the postal
savings system, is in direct competition.

O pens in L ib e rty
H om e Loan Bonds

investigation?

:> : jc

other decision than to have them accepted
at market price.”
The home loan bonds, he said, are se
cured by mortgage and guaranteed as to
interest for fifteen years but are not guar
anteed as to principal.

COMPANIES
Di X

XXI

The Liberty State Bank opened recently
after having been closed since December
6, 1932.
The bank opening was brought about by
faithful work of the directors. The bank
commission complimented the bank upon
its good standing.
Mr. Poague o f Fostoria, Kansas, will
be cashier and his wife assistant cashier.
Mr. Poague states that it will be impos
sible fo r them to move their household
goods now, as Mrs. Poague is employed in
the bank at that place and is unable to
move for a few weeks.

O. F.

Peters Dies

O. F. Peters, fo r many years a banker
o f Yutan, died recently at a Lincoln hospi
tal where he had been a patient since
June. Mr. Peters was born and raised in
Yutan community and took an active part
in activities of that vicinity. He moved
to Greenwood a few years ago where he
engaged in the grain business until poor
health forced him to retire.
Surviving are his wife, five sons and
three daughters.

Returns From Europe
Fred Thomas, vice president of the First
National Bank o f Omaha, was back at his
desk last month following a vacation of
travel in which he and Mrs. Thomas spent
a month in Europe. They visited Eng
land, France, Germany and Switzerland,
spending some time in both London and
Paris.
Mr. Thomas reports a most interesting
trip and was particularly impressed with
the gradual but steady recovery o f both
Germany and England. The German sit
uation in particular being o f great interest.

Minnesota
Bank News
Officers Minnesota Bankers
Association

W IL L IA M DUNCAN, Jr.
President

P resid en t................. W illiam D uncan, Jr.
Mankato
V ice P resid en t.................D. J. Fouquette
St. Cloud
T r e a s u r e r ............................Oluf Gandrud
Benson
S ecreta ry.............................. George Susens
Minneapolis

G E O R G I! SUS EES
Secretary

Independent Bankers Convene
S T H IS issue of T h e N orth w estern
B an k e r goes to press, the Inde
pendent Bankers Association of Minne
sota is holding its convention in St.
Paul. Ben Dubois, secretary o f the as
sociation, last month sent out the fo l
lowing letter to mem bers:
“ It is surely a time when the Inde
pendent Bankers o f the Northwest should
get together for a. free discussion o f their
affairs. New legislation confronts us.
It is a changing o f the ways. W e must
alter our course to conform with the
spirit o f the times. Rugged individual
ism has gone by the board and we are
entering upon a new era. It is a time
to rechart our course.

“ W e will hold our annual convention
on Wednesday, August 30th, at St. Paul.
W e will maintain headquarters at the
Ryan Hotel and will use their Egyptian
Room fo r our meetings and place o f ban
quet. A very good program has been
arranged.
St. Paul’ s eloquent Mayor
Mahoney will welcome us. That very
human banker, A. B. Larson, o f Fari
bault, Minnesota, will respond. Presi
dent Aune will appoint the committees
and we will then have a round table dis
cussion, and in this discussion, which
should be very responsive, we hope to
bring out clearly the viewpoint prevail
ing among the country bankers.
“ In the afternoon session President
Aune will deliver his address. Charles
Sterling, a St. Paul attorney, who has
been very helpful to our association, will
follow with a talk on our association’s
objectives. Otto Bremer, chairman of
the board o f the American National Bank
o f St. Paul, will speak on the Home Loan
Bank. Mr. Bremer is chairman o f this
government organization and the country
bankers will have an opportunity to get
first-hand inform ation concerning this
important institution.
The Honorable
Elmer A. Benson, Commissioner o f Banks
for Minnesota, will deliver an address.
W e are fortunate in having a commis
sioner with the country banker’s view
point and his remarks will be very inter
esting. The report o f the committees

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will be next and that will be followed
by election o f officers.
“ In the evening, we are having our
banquet, this to start promptly at 7 :30
and at 8 :30 Governor Floyd B. Olson will
address us. W e feel that his address
will be o f so much importance, not only
to the members o f our association, but
to the whole Northwest, that through the
courtesy of WCCO his remarks will be
broadcast.”

sota can increase its capital to the neces
sary total by borrowing money on new
issues o f preferred stock, just as national
banks have been allowed to do under leg
islation passed by congress follow ing the
bank holiday o f March.
The ruling followed a conference be
tween Mr. Peterson, Mr. Benson and
John N. Peyton, chairman of the board
o f the Federal Reserve Bank o f Minne
apolis. It permits state banks with in
sufficient capital to meet the capital re
quirements fo r entering the reserve sys
tem without calling on local stockholders
fo r funds, Mr. Peyton explained.

Pine C o u n ty M e e tin g
The Pine County Bankers Association
held their annual meeting at Sandstone
recently with a good attendance. George
Susens, secretary o f the State Bankers
Association, was the principal speaker
and gave a fine talk. Officers fo r the
ensuing year were elected as follows :
James Hogan o f Kerrick, president; R.
W . Barstow o f Sandstone, vice presi
dent; W . M. Englund o f Bruno, secre
tary.

S tate R ep o rt
State to N a tio n a l
The stockholders o f the Farmers and
Merchants State Bank o f St. James,
have voted to surrender the state char
ter o f the bank and to change to a na
tional bank under the provisions o f the
new national banking act.

C o u n ty M e e tin g
P. D. Beaulieu o f Austin, was elected
president o f the Mower County Bankers
Association at a meeting last month.
Howard Hill, o f Brownsdale, was named
vice president and B. W . Kough, o f Aus
tin, was chosen secretary-treasurer.
George Susans, secretary o f the Min
nesota Bankers Association, discussed the
new insurance regulations covering pro
tection in bank robberies. He also ex
plained various phases o f the GlassSteagall bill.

N ew Bank Ruling
An important step in strengthening
the banking structure o f Minnesota, was
taken when a ruling by Attorney General
Harry H. Peterson opened the way for
state banks with small capital to join
the federal reserve system. The banking
act passed by the last congress permits
state banks to become reserve members
by complying with the restrictions as to
minimum capital and periodical examina
tions that are in effect as to national
banks, which must belong to the reserve
system.
The attorney general, in an opinion to
Elmer A. Benson, state commissioner o f
banks, held that a state bank in Minne

Deposits in 498 state banks, savings
banks and trust companies in Minnesota
totaled $189,964,996 as o f July 1st, in
cluding deposits o f 34 banks in the
process o f reorganization, Elmer A. Ben
son, state commissioner o f banks, an
nounced.
A compilation o f the bank call reports
show a decrease in deposits o f $59,936,000 since December 31st last. Commis
sioner Benson pointed out that a number
o f causes are responsible fo r the drop,
including the consolidation o f the First
Minneapolis Trust Company, with de
posits o f approximately $18,000,000,
with the First National Bank o f Minne
apolis, causing a decrease o f this amount
in total deposits o f state trust companies.
“ Another reason is that 251 banks have
gone through the process of reorganiza
tion and in nearly every case scaled their
deposits down and only the deposits re
maining show in the report,” Benson said.
“ The report shows the total deposits
o f $5,294,000 in 34 banks still in the
process o f reorganization.”
One bright feature o f the first bank
call since the national bank holiday is
that banks had reserve on hand o f $27,784,449, or $17,452,145 more than re
quired by law, Commissioner Benson
pointed out.

A . I. B. Elects
Lorenz Ness is the new president o f
the Olmstead county chapter o f the
American Institute o f Banking. He was
elected at the meeting held in Rochester.
Miss Edna Ivoebke was elected vice
president, Carl Frank, secretary; and

Northwestern Banker

September 1933

36
Donald Grue, treasurer. Two governors
were elected for a term o f three years.
They were G. Skogsmark and K. W .
Hagaman.

Banks O p e n
The Farmers and Merchants State
Bank o f New Ulm, was opened by the
state banking department, according to
announcement o f Commissioner Elmer A.
Benson.
Reopening o f the Goodhue State Bank,
Goodhue, Minn., was announced by Elmer
Benson, state banking commissioner.
Reopening o f the Ellsworth State Bank
was announced by Elmer A. Benson, state
commissioner o f banks, follow ing com
pletion o f the bank’s reorganization.
Reopening o f the Altura State Bank
o f Altura and the Farmers’ State Bank
o f Lake Benton, was announced. A p
pointment o f Henry Larson o f Appleton,
as assistant examiner to replace H. S.
Struble o f Minneapolis, also was an
nounced by Mr. Benson.

H o w to Join
Thousands of telegrams from employers
requesting specific information as to just
what steps must be taken in order to re
ceive the Blue Eagle, are still pouring into
National Recovery Administration head
quarters.

In order that these queries may be
answered clearly and concisely, Gen.
Thomas S. Hammond, Executive Director
o f the President’s Re-employment P ro
gram, has laid down the exact procedure.
The statement follows:
To all employers who are not working
under codes approved by the President
and who ask: “ How do I obtain the Blue
Eagle ?” the answer is, there are three
methods which may be pursued.
1. Sign the President’s Re-employment
Agreement as is— without change or modi
fication. Mail it to the District Office o f
the Department o f Commerce. Put its
provisions into operation. Sign the Cer
tificate o f Compliance. Hand it to your
local postmaster, who will post your name
on the Honor Roll and hand you your
Blue Eagle.
2. I f your line o f business has sub
mitted a code and the NRA has tempo
rarily approved hours and wages to be in
effect until the code itself is approved by
the President, do this:
Sign the President’s Re-employment
Agreement. Mail it to the District Office
o f the Department o f Commerce. Com
ply with its provisions as far as possible.
Now, if a specific code has been submitted
by your industry and its wage and hour
provisions accepted by a NRA Deputy
Administrator, sign the Certificate o f
Compliance with this endorsement: “ To

the extent of N RA consent as announced,
we have complied with the President’s
Agreement by conforming with the sub
stituted provisions o f the code submitted
fo r the (blank) trade or industry.” Hand
this to your local postmaster, who will
post your name on the Honor Roll and
hand yon the N RA Blue Eagle.
3.
I f neither 1 nor 2 applies and you
feel you have to file a petition fo r relief,
do this:
Sign the President’s Re-employment
Agreement, mail it to the District Office
of the Department o f Commerce. If you
find you cannot comply with most of its
provisions, then prepare a petition to the
N RA asking fo r a stay or postponement
o f those provisions which would produce
an “ unavoidable hardship” . Submit this
petition to a trade association o f your
industry, or, if none, to your local Cham
ber o f Commerce, or such other organiza
tion as can properly vouch for the facts.
I f officially accepted by one o f the above,
add the following to the face o f your
certificate:
“ Except fo r those interim provisions
regarding wages and hours which have
been approved by the (blank) association
or organization.”
Then the postmaster will authorize you
to use the N RA Blue Eagle. This last
procedure may take some time and is,
o f course, subject to reversal.

Continental Illinois N ational

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Bank

and

T rust Company

of CHICAGO

Commercial Banking

September 1933

North Dakota Bank News
Officers North Dakota Bankers Association
............... D. R . Green

P resid en t .................
Grand Forks

. . . .F . D. McCartney

V ice P resident. . . . .
Oakes
T rea su rer...................
Fargo
S ecreta ry...................

D. R. GREEN

O p e n In G ra n d Forks
Establishment o f the First National
Bank in Grand Porks, to replace the
present institution o f similar name, like
ly will be accomplished soon.
This was indicated when subscriptions
to the $150,000 common stock and sur
plus in the bank went “ over the top,” and
it was announced the bank will open as
soon as legal and technical phases can be
disposed of.
The exact opening date cannot be fixed
until all the necessary preparatory de
tails are settled.
The Reconstruction Finance Corpora
tion has given its form al approval to
the purchase o f $150,000 preferred stock
in the new bank, which will give the bank
a capital o f $250,000 and $50,000 surplus.

H om e Loan Banks
Heads o f three branch offices o f the
United States home loan banks for North
Dakota were announced recently by F.
W . McLean.
R. L. Taft will head the Grand Forks
office with G. E. W ooledge in charge at
Minot, and P. E. Byrne at Bismarck.
Headquarters will be at Fargo.
Offices o f the Grand Forks branch will
he in the Holt building on South Fourth
Street in the rooms form erly occupied by
the North Dakota-Montana Avheat grow
ers.
The United States immigration offices
will occupy the rest o f the second story
o f the building as soon as construction
o f the addition to the federal building is
started, and the bank will be located in
the front of the second floor o f the build
ing on South Fourth Street.
Applications for loans are now beingreceived at the headquarters in Fargo
and at the branches in Grand Forks,
Minot and Bismarck.

Fargo

succeeds the First National Bank at
Munich.
The other charter went to the Bank
o f Marmarth in Bowman county, suc
cessor to the First National Bank o f Mar
marth.

Pioneer Dies
Emil Theodore Swanson, o f Chaseley,
passed away in a hospital in Rochester
last month. Death was caused by double
pneumonia, although Mr. Swanson had
not been in the best health fo r nearly a
year.
Mr. Swanson was horn in Minneapolis
forty-nine years ago, and in 1902 took up
a claim near Chaseley where he resided
until 1918, when he moved to Gwinner
and Lisbon, North Dakota. He returned
to Chaseley in 1928 and from that time
until his death he shouldered the re
sponsibility o f managing his several
farms in that community.
During his residence at Chaseley, he
Avas cashier o f the Chaseley Bank, and
also served as cashier o f the Farmers
State Bank in Lisbon and cashier o f the
Farmers Bank in Gwinner, during his
residence in those cities.
G. H. GORDER has been elected cash
ier o f the Berwick State Bank to suc
ceed E. N. Kittelson who recently re
signed to accept the position o f cashier
o f the Citizens State Bank, Enderlin.
JOSEPH M. SHOCKM AN has ac
cepted a position as teller and book
keeper o f the Farmers and Merchants
State Bank, Berlin, succeeding Dorothy
Reader Avho has resigned.
B A R B A R A SHOCKM AN has been
elected a director o f the Farmers and
Merchants State Bank, Berlin, succeed
ing Mabel W aldie who has resigned.

Two N ew Banks
The North Dakota State Banking
Board has issued charters to two new
banks, each to have capital stock o f $15,000 and surplus o f $3,000.
A charter was granted to the Cavalier
County State Bank at Munich, which

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r
Federal
Reserve Bank of St. Louis

B. E. PETERSON has accepted a po
sition as assistant cashier o f the Benson
County State Bank, Minnewaukan, suc
ceeding R. B. Foley who recently re
signed to accept a, position with the First
National Bank, Lemmon, S. D.

LEONARD C. M ACHEEL has ac
cepted a position as bookkeeper o f the
Peoples State Bank, Parshall.
H A R R Y R. SCHULSTAD has been
elected a director o f the State Bank of
Reynolds succeeding Julia Moen who has
resigned.
THE SECRETARY OP STATE has
issued a certificate renewing the term of
corporate existence o f the Lincoln State
Bank of Glenhurn, for a period of twen
ty-five years.
H. W . GEORGE has been elected a
director o f the Bank o f Steele succeeding
H. H. Gravseth. Martin Peterson has
been elected as a vice president succeed
ing H. H. Gravseth.
THE SECRETARY OF STATE has
issued a certificate renewing the term
o f corporate existence of the Deering
Stale Bank fo r a period of twenty years.
THE NORTHERN & Dakota Trust
Company, Fargo, has amended its ar
ticles o f association and increased the
number o f its directors to eleven.

P re d ict Success
o f W h e a t Plan
Wheat farmers generally will accept the
wheat production control program o f the
Agricultural Adjustment Administration,
it was forecast in reports last month to
Washington from 32 state agricultural
extension directors.
County agricultural agents in each
Avheat producing state, under state exten
sion directors, are helping farmers organ
ize county Avheat production control asso
ciations. State reports Avere made to Dr.
C. W . Warburton, director o f extension
Avork.

Indications are that Avhen Secretary
Wallace announces on August 24th, the
amount o f acreage reduction which will be
asked for 1934, most states will be ready
fo r a systematic distribution of applica
tions fo r contracts among farmers. Some
states even plan starting their sign-up
before Secretary Wallace makes his an
nouncement.
Significant excerpts from several state
reports, Avith the name o f the state, and
the state extension director, folloAV :

Colorado : F. A. Anderson, director.
“ Preliminary organization to be complete
for sign-up Aveek beginning August 21st.
Sentiment generally favorable to plan.”
Illinois : R. R. Hudelson, assistant to
director. “ All counties have planned a
series o f meetings fo r every community
in the State. Community meetings noAV
being held. All indications are fo r good
cooperation o f farmers.”
Indiana: J. H. Skinner, director. “ All
counties have emergency wheat commit-

Northwestern Banker

September 1933

The m ost

convincing
a d vertisem en t
we can produce is not so
effective as the good will of
a satisfied customer.
The facilities this b a n k
places at the disposition of
its correspondents, and the
services we are prepared at
all times to render, are
based upon this fundamental
truth.
We have been caring for the
needs of out-of-town banks
for one hundred and thirty
years.

■
...T H E ...

PH ILAD ELPH IA
N A T IO N A L B A N K
ORGANIZED 1803

PHILADELPHIA, PA.
CAPITAL and SURPLUS_____________ * 3 0 ,0 0 0 ,0 0 0

Northwestern Banker

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Federal Reserve Bank of St. Louis

tees. Farmers generally sympathetic to
plan and in light o f present information
inclined to give it their full support.”
Iowa : R. K . Bliss, director. “ Prac
tically all wheat growers have been con
tacted. Expect to push signing fast. A t
titude toward plan most encouraging.”
Minnesota : W . C. Coffey, director.
“ Educational meetings being held in all
wheat counties.
Twenty-one counties
ready for presentations of applications.”
Missouri : R. R. Thomasson, director.
“ Plan to start signing applications in
most counties not later than week of
August 20th. Wheat growers showing re
ceptive and friendly attitude.”
Nebraska: W. H. Brokaw, director.
“ Seventy-five per cent o f precinct meet
ings over. Plan favorably received by
those eligible to sign.”
North Dakota: C. F. Monroe, director.
“ All educational committees selected in
county agent counties. Wheat plan in
general meeting very favorable reception.”
South Dakota : A. M. Eberle, director.
“ Last series of meetings expected to be
completed August 20th.”

Renewed S trength
The first report on the condition o f the
national banking system since the holiday
o f March discloses it has emerged from
the troublous period with renewed strength
and had total resources o f $20,860,491,000
as o f June 30.
This figure, announced by J. F. T.
O’Connor, comptroller o f the currency, on
the basis o f the first bank call since last
December, compared with total resources
at the end o f last year of $23,310,974,000.
The December total was reported by
6,016 banks, however, while the June fig
ure represented the assets o f 4,902 insti
tutions.
At the end of June, 985 national banks
were unlicensed and operating under re
strictions or not at all. They had aggre
gate resources o f $1,441,436,000, making
a grand total fo r licensed and unlicensed
institutions o f $22,301,927,000 or a shrink
age o f $999,947,000 in value and 129 in
number.
The June 30 resources compared with
$22,367,711,000 fo r 6,150 national banks
on June 30, 1932.
At the end o f June, the licensed national
banks had total deposits o f $16,774,115,000, a decrease o f $1,743,992,000 since
December and a drop of $686,798,000 in
the year. But the unlicensed banks had
deposits o f $1,028,347,000.
Deposits in the licensed institutions in
cluded demand deposits o f $7,894,127,000
and time deposits o f $6,216,917,000. The
latter figure included savings deposits o f
$4,821,521,000 and represented 12,023,986 accounts.
The strength one can eke from little,
who knows till he has been subjected to
the trial?— Lew Wallace.

September 1933

Iowa
Bank News
Officers Iowa Bankers
Association
President................... B. F. Kauffman
Des Moines
Vice President...............C. R. Gossett
Sioux City
Treasurer................................C. S. Rye
Manly
B. F. KAUFFM AN
President

Secretary......................Frank Warner
Des Moines

FRANK W ARNER
Secretary

I. B. A. Committee Appointments
superintendent, Des Moines, advisory
F. K A U F F M A N o f Des Moines,
. president o f the Iowa Bankers Asso member.
ciation, last month announced personnel
Taxation Committee
o f 13 committees which will assist him in
Bank
Taxation— George J. Schaller,
carrying on the association program fo r
president,
Citizens First National Bank,
the coming year.
Storm Lake, chairman; E. D. Huxford,
The agricultural committee is headed by
president, Cherokee State Bank, Chero
C. S. Rye, cashier, Manly State Bank,
kee; H. C. Bruns, vice president, Auburn
Manly. Members a re:
Savings Bank, A uburn; J. F. Kennedy,
W . M. Rosen, president, City State
cashier, New First National Bank, New
Bank, Ogden; 0. -J. Obrecht, cashier, H ol
H am pton; Grant McPherrin, president,
stein State Bank, Holstein; H. J. Rich
Central National Bank and Trust Co., Des
ards, cashier, Security State Bank, AllerMoines; R. B. Figge, assistant cashier,
ton ; A. J. Roberts, president, First Iowa
Iowa State Bank, Calmar; H. N. Boyson,
State Bank, Albia; F. L. Pearson, cashier,
vice president, Merchants National Bank,
West Branch State Bank, West Branch;
Cedar Rapids; J. P. Thomson, cashier,
J. J. Matthews, vice president, Union
Cresco Union Savings Bank, Cresco; R. D.
Bank and Trust Co., Strawberry P oin t;
Swartzlander, cashier, Tipton State Bank,
J. H. Pullman, cashier, Fremont County
Tipton.
Savings Bank, Sidney; J. L. Deland, cash
Educational— M. E. Tate, vice presi
ier, Commercial Trust and Savings Bank,
dent, Security State Bank, Keokuk, chair
Storm Lake; Thomas L. Evans, president,
man; C. 0 . Wilkinson, president, North
Farmers Savings Bank, Beaman; W . L.
west Savings Bank, Mason City; B. B.
Graves, cashier, Washington National
Vorse, vice president, Bankers Trust Co.,
Bank, Washington.
Des Moines; H. C. Steele, president,
Other committees a re:
Steele’s State Bank, Cherokee; C. E.
Watts, cashier, Commercial State Bank,
Auditing
Pocahontas; E. E. Bloom, cashier, Central
Auditing— W . L. Crumley, cashier, Dal
State Bank, Muscatine; L. J. Derflinger,
las County Savings Bank, Minburn, chair
executive vice president, Clinton National
man; Ivan O. Hasbrouck, cashier, Iowa
Bank, Clinton; F. J. Miller, vice presi
State Bank, Jefferson; H. C. Lovett, cash
dent, Manning Trust and Savings Bank,
ier, Decatur County State Bank, Leon.
Manning; W . R. Goodman, cashier, Adair
County Bank, Greenfield; Clarence J.
Banking Analysis— D. V. Farris, cash
Adams, cashier, Dyersville National Bank,
ier, First National Bank, Diagonal; J. P.
Dyersville; C. E. Baylor, president, First
Jones, cashier, Citizens Savings Bank, Sac
Trust and Union Savings Bank, Sigour
City; Fred S. Barlow, vice president,
ney.
First National Bank, Spirit Lake; F. P.
Walker, cashier, First National Bank,
Federal Reserve
Clear Lake; H. T. Orr, vice president,
Union State Bank, M onona; J. W . Miller,
Federal Reserve— E. C. Fislibaugh,
Jr., president, Commercial State Bank,
president, Security Trust and Savings
Denison; C. H. Stephenson, cashier, Bank
Bank, Shenandoah, chairman; A. M.
ers Trust Co., Des Moines; Keith Vawter,
Lowry, cashier, Fort Madison Savings
president, Center Point-Walker Bank and
Bank, Fort Madison; Frank Ricksher,
Trust Co., Center Point; H. G. Kramer,
president, Iowa State Savings Bank, Fairvice president, City National Bank, Clin
field ; Harry Schaller, vice president, Citi
ton; Max Yon Schrader, cashier, Union
zens First National Bank, Storm Lake;
Bank and Trust Co., Ottumwa; John Dun
H. M. Carpenter, Jr., cashier, Monticello
lap, president, Keokuk National Bank,
State Bank, Monticello; J. E. Ashton,
Keokuk; D. W. Bates, state banking
cashier, Farmers and Merchants State

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Federal Reserve Bank of St. Louis

Bank, Lone Tree; C. A. Diehl, vice presi
dent, Iowa-Des Moines National Bank and
Trust Co., Des Moines.
Insurance— Howard F. Sones, cashier,
Nevada State Bank, Nevada, chairman;
G. M. Butts, cashier, Exchange State
Bank, W esley; Irvin B. Bleeker, cashier,
Rath State Exchange Bank, Ackley; John
F. Gutz, president, Pomeroy State Bank,
Pomery; L. A. Witter, vice president,
Farmers Trust and Savings Bank, Spen
cer.
Legislative Group
Legislative, state and national—A . W .
Jones, president, Sac City State Bank,
Sac City, chairman; Oscar Otto, vice pres
ident, Whitney Loan and Trust Co., A t
lantic; C. L. Rigby, president, Union
Trust and Savings Bank, Stanwood;
Wayne C. Currell, president, Emmet
County State Bank; Estherville, (repre
senting committee on trust business); Y.
0 . Figge, executive vice president, Daven
port Bank and Trust Co., Davenport;
V. D. Koons, president, First State Bank,
Britt; H. R. Young, cashier, American
National Bank, Arlington; F. C. Welch,
president, Peoples Savings Bank, Cedar
Rapids; H. L. Tinley, cashier, State Sav
ings Bank, Council Bluffs; Frank W il
liams, cashier, Capital National Bank,
Iowa City.
Banking Act
Special committee on Glass-Steagall
banking act o f 1933— L. A. Andrew, pres
ident, state bank section, American Bank
ers Association, Des Moines, chairman;
Fred J. Figge, president, Ossian State
Bank, Ossian; F. E. Boyd, president, First
National Bank, C olfax; D. W . Bates,
state superintendent o f banking, Des
Moines.
Rivers development and warehousing—
William Lawther, Jr., president, First
National Bank, Dubuque, chairman; B. L.
McKee, cashier, Muscatine Bank and
Trust Co., Muscatine; 0. P. Petty, vice
president, City National Bank, Clinton;
C. I. Danforth, vice president, First Na
tional Bank, Burlington; 0. S. Stanbro,
cashier, Keokuk Savings Bank and Trust
Co., Keokuk; F. R. Jones, vice president,
First National Bank, Sioux City; B. A.
Gronstal, vice president, Council Bluffs
Savings Bank, Council Bluffs; Rolfe 0.
Wagner, president, Capital City State
Bank, Des Moines; E. R. Haines, cashier,
Decorah State Bank, Decorah.
Time Lock
Time Lock— J. B. Gray, cashier, E x
change State Bank, Lime Springs, chair
man ; Clay W . Stafford, cashier, Ames
Trust and Savings Bank, Ames; A. J.
Miller, cashier, Citizens State Bank, Hopkinton; A. L. Kout, vice president, First
Nashua State Bank, Nashua; W . W . Mat
thews, cashier, Farmers and Merchants
Savings Bank, Manchester; F. C. Moeller,
cashier, Fort D'odge National Bank, Fort

Northwestern Banker

September 1933

Dodge; 0. G. Uhr, cashier, Security Sav
ings Bank, Eagle Grove.
Trust Business— J. J. Miller, cashier«
Waterloo Savings Bank, Waterloo, chair
man; Clyde Doolittle, trust officer, IowaDes Moines National Bank and Trust Co.,
Des Moines; Carl Fredericksen, vice presi
dent, Live Stock National Bank, Sionx
City; C. F. Harris, cashier, State Bank.
Gladbrook; G. 0. Van Derveer, cashier.
State Bank o f Waverly, W averly; Wayne
C. Currell, president, Emmet County State
Bank, Estherville; R. S. Howard, vice
president, Mahaska County State Bank,
Oskaloosa; L. B. Bartholomew, vice pres
ident and trust officer, Bankers Trust Co.,
Des Moines; Charles Burdick, president,
State Savings Bank, Baxter.

Credit Facilities
Banking and Agricultural Credit Facil
ities— W. T. Robinson, vice president,
Citizens National Bank, Hampton, chair
man; H. L. Horton, vice president, IowaDes Moines National Bank and Trust Co.,
Des Moines, vice chairman; William J.
Lewis, president, Harlan National Bank,
Harlan; W . N. Grant, vice president,
Peoples Trust and Savings Bank, Indianola; E. S. Van Gorder, president, First
State Bank, Audubon; F. F. Everest,
president, First National Bank, Council
Bluffs; R. B. Dalton, cashier, First Na
tional Bank, Le Mars; H. C. Stieglitz,
cashier, Home Savings Bank, Des Moines ;
S. E. Coquillette, vice president, Mer
chants National Bank, Cedar Rapids.

A C o rre c tio n
In the August issue o f T he N orth
B a n k e r was published a list o f
Iowa State and National banks which
were operating on an unrestricted basis.
Through an error, the name o f The First
National Bank o f Crestón was omitted.
W e regret exceedingly this omission, and
hasten to advise our readers that the First
National Bank o f Crestón has been oper
ating without restriction of any nature
since May 12, this year.
w e s te r n

N am ed D ire c to r
J. B. Elliott, o f Independence, has re
cently been appointed a director in the
Farmers State Savings Bank to fill the
vacancy caused by the death o f Albert
Israel who has been a valuable director
o f this bank since organization in 1921.

A nnual M e e tin g
The annual meeting o f the stockholders
o f the First Trust & Savings Bank of
Anthon was held recently with a full at
tendance o f stockholders, including James
F. Toy and James T. Van Dyke o f the
Toy National Bank, Sioux City.
Business transacted by the institution
during the year closed June 30, 1933, was
reviewed, and was considered very satis
factory considering economic conditions.
An increase o f approximately $40,000 in
deposits since the national banking holi
day in March elicited much satisfaction
among stockholders. The local bank has
a large amount o f cash and cash securities
available fo r investment in amply secured,
responsive loans, which will be made at
reduced rates o f interest.
Officers were re-elected as follows:
James F. Toy, president; Frank Hladik,
vice president; Homer M. Boyd, cashier;
James T. Van Dyke, Arnold Petersen,
J. M. Paulsen, James F. Toy, Frank
Hladik and Homer M. Boyd, directors.
A general feeling of optimism was
noticeable among the directors', who con
sider the outlook for the future much
brighter.

Dies in C a lifo rn ia

The Omaha
National Bank

W . J. Davis, fo r many years president
o f the First National Bank of Hartley,
died at Long Beach, Calif., August 6th.
Mr. Davis was 60 years old and died
after a several months sickness o f cancer.
F or 25 years Mr. Davis was a spectacu
lar figure in northwest Iowa, removing to
California six years ago. He is sur
vived by his widow and one daughter,
Mrs. Genevieve Searle o f Denver.

O n C o d e C o m m itte e
L. A. Andrew, Des Moines, president
o f the state bank division o f the Amer
ican Bankers Association, has been
named on the national bankers N RA code
committee.

Northwestern Banker

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

September 1933

The appointment was made by Francis
Sisson, president o f the American Bank
ers Association.
Notification was forwarded by F. N.
Shepherd, executive manager o f the as
sociation.

W h itte m o re C ashier
J. P. Uhlenhake and fam ily have
moved their household effects to W hitte
more where they will take up a per
manent residence. Mr. Uhlenhake has
accepted the position o f cashier o f the
Whittemore State Bank. This work is
not new, as he held a like position with
the Stockholm, Wisconsin, State Bank
for a number o f years.

First National Bank Solid as the Rock
o f Ages,” and that name has remained
since that time. Now under the direc
tion o f Brenton Brothers, who have been
operating banks in Dallas county for
61 years it is considered one of the
strongest banks in this section o f the
state.

N ew H ours
New banking hours, effective Saturday,
August 19th, went into effect in Spencer,
and now local banks, operating on the
NR A code will open at nine o’clock in
the morning and will close their doors
at three o’clock every afternoon includ
ing Saturday.

Both the Clay County National and
Farmers Trust and Savings banks are
operating on the new hour schedule.

Dies in St. B enedict
Joseph Rahm, St. Benedict, long one
o f southeast Kossuth’s best known citi
zens, died recently at his home, follow
ing a long sickness with diabetes. He
had been bedfast four weeks.
Mr. Rahm was born in Bavaria, Ger
many, March 2, 1853, and came to the
United States in the early 60’s with his
parents. In 1875 he settled in Prairie
township, on wild prairie land, building
a barn and small shanty, later developing

Reorganized
Reorganization o f the Benton County
State Bank o f Blairstown, was under way
after the form ation o f a new board of
directors.
Members o f the new board include
Fred Terman, Henry Frantzman, Rob
ert Sayers, J. D. Moeller, Henry Schultz,
Charles Bruch and Henry J. Grünewald.

W ith Financial Division
Luther L. Hill, on leave o f absence
from M cMurray-Hill & Co., investment
bank in Des Moines, has been loaned by
the Reconstruction Finance Corp. to the
federal emergency administration of
public works.
Mr. Hill will be connected with the
financial division o f the administration
in Washington, D. C.
In January he was named to the staff
o f the Reconstruction Corp. in the self
liquidation department.
His work with the public works ad
ministration will be to help with the
organization and enlargement o f the finan
cial division.

r |^HE Bankers Trust Company, a com
mercial bank with ample resources and
long experience in meeting the require
ments of modern business and of cor
respondent banks, places at the disposal
of its customers an organization ably
equipped to render every variety of
banking and trust service.

C ashier Resigns
W . J. Sandberg, cashier of the Kiron
State Bank, has resigned the position,
and is retiring from active connection
with the bank due to the condition of
his health. He has served as cashier o f
the institution fo r more than thirty-three
years. C. E. Dahl, one o f the board of
directors, was elected to the position.

F ifty Years
Congratulations were being extended
recently to the First National Bank of
Perry, “ The Old Reliable” on the event
o f the fiftieth anniversary o f the grant
ing o f the national charter. This charter
was granted on August 14, 1883. The
bank has operated as a national bank
continuously since that time.
The First National Bank was given
that title o f “ The Old Reliable” back in
the days o f the panic o f 1893 when an
editorial spoke o f it as “ Old Reliable

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Federal Reserve Bank of St. Louis

Bankers T rustC o .Ba n k
^

ember^ I L

^ EDS ystenS |

CORNER 6th A N D LOCUST STS., DES M O IN ES
C A P IT A L $1,000,000

SURPLUS $200,000

DIRECTORS
L. B. BARTHOLOMEW
V ic e P r e s . - T r u s t O ffic e r
PAUL BEER
P r e s id e n t, T h e
F ly n n D a i r y C o.
DR. O. J. FAY
S u rg e o n
HENRY FRANKEL
T r e a s ., Y o u n k e r B r o s .
J. G. GAMBLE
A tto rn e y

J. W. HOWELL
V ic e P r e s id e n t, W a r ß e ld - P r a t t - H o w e ll Co.
F. W . HUBBELL
V ic e P re s . - T re a s .,
E q u it a b le L i f e I n s .
C o m pa ny o f Io w a
J. W . HUBBELL
V ic e P r e s id e n t, F . M .
H u b b e ll S o n & C o.

B. F. KAUFFMAN
P r e s id e n t
L. B, MAYTAG
C a p it a lis t
S. L. SHEUERMAN
P r e s id e n t, S h e u e rm a n
B ro th e rs , In c .
B. B. VORSE
V ic e P r e s id e n t

Northwestern Banker

September 1933

42
the place into one o f the best improved
farms in Kossuth.
Mr. Rahm continued to farm till 1901,
when he retired to St. Benedict, where
he has since lived. He was one o f the
first directors o f the People’s Savings
Bank, and for many years was vice presi
dent.

U n re stricte d
Elina’s bank is now operating without
restrictions. Since March 4th, when all
the banks o f the country were closed by
presidential proclamation, the Peoples
Savings Bank has been operating under
Senate Pile No. 111.
On Tuesday, August 15th, officials of

the bank received word from D. W . Bates
that the Peoples Savings Bank had been
released from the management o f the
superintendent o f banking, effective at
the close o f business August 15, 1933.

D ebits Increase
An encouraging sign o f business re
covery in Sioux City is given by the bank
debits fo r July, 1933, as compared with
the debits fo r July, 1932.
Figures released by R. W . Tackaberry,
secretary o f the chamber o f commerce,
showed that the debits fo r July this year
amounted to $28,945,438, whereas the
debits fo r July, 1932, were $22,811,474.
Thus it may be seen that there was

★

a total o f $6,134,000 more in circulation
in July than the corresponding month
o f last year. The gain was slightly more
than 22 per cent, an excellent indica
tion o f improving business conditions not
only in Sioux City but in the surround
ing territory.

Released
The First National Bank o f Valley
Junction was released from operating
under terms o f the national banking holi
day, on August 22d, it was announced
by W . A. Kinnaird, president.
Clarence M. Cornwell, vice president,
who has been acting as federal conserva
tor o f the bank, said the new license
will permit the bank to pay out imme
diately $180,000, or 50 per cent o f the
deposits on hand March 4th.
The remaining 50 per cent o f deposits,
covered by depositors’ waivers, will be
released later as frozen assets are liquid
ated, Mr. Cornwell said.

To O rganize
Possibility o f organizing a new bank
at Lenox is being discussed. A plan has
been worked out and submitted fo r ap
proval o f the banking department at
Washington.
A meeting o f depositors in the Lenox
First National Bank is to be called, and
a speaker will acquaint them with the
banking situation as it exists there.

iH R O U G H O U T

NORTHERN

TRUST

the years THE
COMPANY

Released

has

The Emerson State Bank was released
from restrictions o f Senate File No. I l l
and is again doing business as usual.
The institution closed February 4th and
opened later as a restricted bank under
Senate File No. 111. Depositors signed
waivers on a 50-50 basis.
F ifty per cent o f their deposits are
available and the balance is held in a trust
fund fo r the next three years and will be
paid to depositors as funds are available
after collecting bank loans.

held to the simple, time-test concepts
upon which the bank was founded.

The

circle of its friends has widened.

The

scope of its service has become broader.
More people than in the past now bring
their problems here.

If we can serve you in
Chicago your inquiries
are respectfully invited.

N am ed C ashier
A lfred Hansen, who fo r some time was
connected with the First National and
Farmers Savings Banks o f Sibley, recent
ly accepted the position as cashier o f the
Security State o f that city.

THE NORTHERN
TRUST COMPANY

N ext June

Northwest Corner
La Salle and Monroe Streets
CH ICAGO

★
Northwestern Banker

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Federal Reserve Bank of St. Louis

*
September 1933

B. Frank Kauffman, president o f the
Iowa Bankers Association, says Friday
the association’s council o f administration
has set next June 18, 19 and 20 as dates
fo r the forty-eighth annual convention of
the association.
President Kauffman said the place o f
the convention will not be determined until
the midwinter meeting o f the council in
December.

To Depositors
Payments to depositors in the course o f
liquidation o f Iowa receivership banks
amounted to more than one million dollars
during July, State Banking Superintend
ent D. W . Bates announced.
The exact total was reported as $1,092,399.93, with 20 banks involved. Final
payments were reported in five cases.

Dies in Fort Dodge
Charles Stayman, 63, vice president o f
the Fort Dodge National Bank and long
prominent in Fort Dodge business circles,
died recently after a short illness with
heart disease.
He is survived by his
widow.
Funeral services were held with burial
in Urbana, 111.

operating fo r several months, under the
restrictions o f Senate File 111, adopted
by the Forty-fifth General Assembly, de
clares the requirements o f the state bank
ing department and the state laws, neces
sary to the reopening o f the institution
fo r a general banking business, are near
ing completion, and that the bank will
receive its authority at an early date.
F or several weeks the bank has been
canvassing its depositors fo r signatures
to a waiver plan, by which 45 per cent o f
the deposits o f the institution is set aside
as a trust fund, for future liquidation,
and 55 per cent o f the deposits waivered
fo r a term not exceeding three years. In

complying with these requirements of the
department the bank must secure waivers
totaling in number more than 50 per cent
of all its depositors, and in amount not less
than 75 per cent o f all deposits.

New C ash ier
Frank Woods, formerly o f Everly, but
who recently has been employed at Worth
ington, Minn., has been retained as the
cashier o f the Gillett Grove Savings Bank
to succeed George W . Hargrave of Spen
cer. Mr. Hargrave recently resigned.
Mr. W oods is now in charge o f his new
duties and is rapidly becoming known

Named C ash ier
A t the last meeting o f the Wayland
State Bank Melvin G. Roth was elected
cashier to succeed C. L. Gräber who re
signed, effective September 1st, to return
to Goshen, Indiana, to become financial
director o f Goshen college.
Mr. Gräber came from Goshen in April,
1932, to organize the Wayland State Bank
which opened its doors May 12, 1932.
Mr. Gräber will retain a connection with
the bank and has been elected second
vice president.

R .

WE DO OUR PART

Financing the Forward
March of Business

Released in Ottumwa
Ottumwa bankers gathered last month
fo r a banquet marking the release o f three
banks which had been operating under
Senate File No. I l l since the close o f the
banking holiday.
D. W . Bates, state superintendent of
banking, congratulated the banks in an
address which was broadcast over radio
station W IA S .
The three banks released from the pro
visions o f Senate File No. I l l are the
First Bank and Trust Co., the South
Ottumwa Savings Bank and the Farmers
and Merchants Bank.
The Farmers and Merchants Bank
opened without restrictions on any de
posits.
The First Bank and Trust Co., and the
South Ottumwa Savings Bank operate
with restriction on old deposits, but new
deposits made under Senate File No. I l l
are unrestricted.
It is expected that these two banks will
release parts o f their old deposits within
three months.
The Union Bank and Trust Co., a mem
ber o f the federal reserve, has been open
on an unrestricted basis since March 8th,
four days after all the banks in the coun
try were closed.

Now, as in the past, we are making loans
for sound commercial purposes, helping to
finance the forward march of business. We
consider this an important part of our co
operation in the National Recovery Program.
In meeting the increasing banking needs of
business firms, and individuals as well, we
offer every service consistent with tested
banking principles.
We protect the funds of our depositors and
correspondents by maintaining ample liquid
resources and by adhering to sound, conserva
tive policies at all times.
Large and small accounts alike are assured
uniformly dependable and interested service.

M c P h b r r in
P re sid e n t

rant

Lygn Fu l l &r
Vice Pres, and Cashier

mwßm

W ill Soon O pen
President Crawford, o f the Valley Sav
ings Bank, Des Moines, which has been

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Federal Reserve Bank of St. Louis

N orthw estern Banker

S eptem ber 1931;

44
and popular throughout the community.
He is to make his residence in Gillett
Grove.

To Reorganize
J. M. Boots, conservator for the Citizens
National Bank o f Hampton, has an
nounced that the reorganization plan o f
the bank has been approved in Washing
ton, D. C., and that definite plans are
under way fo r its reorganization. The
bank has been operating under the waiver
plan since March 4th.
The plan provides that 55 per cent o f
all old deposits, $300,000, will be taken
into the new bank and released on an un
restricted basis.

Code of Fair Competition of the Bankers
of the United States

and stock banks, trust companies and in
H E declared purpose o f this Code is
vestment bankers.
to effectuate the policy o f Title 1 o f
the National Industrial Recovery A ct dur
1.
Labor Provisions
ing the period o f emergency.
A s required by Section 7 (a) o f Title 1
D’E FIN IT IO N
o f the National Industrial Recovery Act,
the following provisions are conditions o f
The American Bankers Association af
this Code :
firms that it imposes no inequitable re
1. Employes shall have the right
strictions on its membership, and partici
to organize and bargain collectively
pation in its activities, and it is truly rep
through representatives o f their own
resentative as a National Association con
choosing, and shall be free from the
sisting o f National, State, savings, mutual
interference, restraint, or coercion of
employers o f labor, or their agents, in
the designation o f such representatives
or in self-organization or in other con
certed activities for the purpose o f col
lective bargaining or other mutual aid
or protection ;
2. No employe and no one seeking
employment shall be required as a con
dition o f employment to join any com
pany union or to refrain from joining,
organizing, or assisting a labor organ
ization o f his own choosing ; and
3. Employers shall comply with the
maximum hours of labor, minimum rates
o f pay, and other conditions o f employ
ment, approved or prescribed by the
President.
2. Child Labor

IN C H IC A G O . .
Drovers service is reaching an ever
increasing number of conservative
individuals and firms.
More new
accounts were started in the first
six months of 1933 than any simi
lar period in Drovers history.
This is not news to our Corre
spondent Banks for they, too, like
Drovers genuine personal service.
5

rovers

N A TIO N A L B A N K
TUI!516'SAVINQ5 BANK

Union Stock Yards - Chicago, 111.

1933-Century of Progress Exposition in Chicago

Northwestern Banker

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Federal Reserve Bank of St. Louis

September 1933

A fter August 31, 1933, no person under
16 years o f age shall be employed, except
that persons between 14 and 16 years o f
age may be employed, fo r not to exceed
3 hours per day and those hours between
7 a. m. and 7 p. m. in such work as will
not interfere with hours o f day school.
3.

Hours o f Employment

(A ) No banking employe shall work
in any bank fo r more than 40 hours in
any one week on an average o f a 5-week
period (such average being necessary ow
ing to the periodic settlements, payments
or emergencies in serving the public, over
all of which the bank has no control). The
hours o f any banking operations shall not
be reduced below the hours now obtaining
in each individual bank.
(B ) This provision fo r working hours
shall not apply to guards and watchmen
employed to safeguard the assets o f the
bank who cannot be shifted or changed
during the night period.
(C ) The maximum hours fixed in the
foregoing paragraphs shall not apply to
employes in banking establishments em
ploying less than two persons in towns
o f less than 2,500 population, which towns
are not part o f a larger trade area; nor
to employes in a managerial or executive
capacity or in any other capacity o f dis
tinction or sole responsibility who now
receive more than $35 per week. Popula
tion fo r the purposes o f this agreement

45
shall be determined by reference to the
1930 federal census.
4. TFages
No employe shall be p a id :
(A ) Less than $15.00 per week in any
city o f over 500,000 population, or in the
immediate trade area o f such city ;
(B ) Less than $14.50 per week in any
city between 250,000 and 500,000 popula
tion, or in the immediate trade area o f such
city;
(C ) Less than $14.00 per week in any
city between 2,500 and 250,000 population
or in the immediate trade area o f such
city, and
(D ) In towns o f less than 2,500 popu
lation all wages shall be increased by not
less than 20 per cent, provided that this
shall not require wages in excess o f $12.00.
5. Administration
Such o f the provisions o f this Code as
are not required to be included therein
by the National Industrial Recovery Act
may, with the approval o f the President,
be modified or eliminated as changes in
circumstances or experience may indicate.
This Code shall become effective when
approved.

OFFICER S

J. H. NISSEN
Cashier & Assistant
Trust Officer
M. E. McCRABB
Assistant Cashier

W. A. ANDERSON
President
MILO J. GABRIEL
Vice President

E. JOHANNSEN
Assistant Cashier
H. M. OLNEY
Assistant Cashier

O. P. PETTY
Vice President and
Trust Officer

F. E. CONOVER
Assistant Cashier
F. H. HAMANN
Assistant Cashier
R. A. W. LATIMER
Auditor

H. G. KRAMER
Vice President
A. R. THURN
Vice President

Clinton County’s Largest Bank

Qualified to Serve

Rawson Retires
Frederick H. Rawson, chairman o f the
board o f directors o f the First National
Bank o f Chicago, announced his retire
ment from that position at a, recent board
meeting. Mr. Rawson’s retirement as an
executive officer o f the bank is due to
his desire to conserve his health after
an absence o f a year on that account.
This, though much improved, prevents
him from taking an active part in the
bank’s affairs, but he will continue as a
director.
Mr. Rawson has been a leading figure
in Chicago business and finance for
nearly forty years. He is a director of
the Baltimore & Ohio and the C. B. & Q.
railways and a number o f business or
ganizations, but his principal activities
have always been in banking. Graduated
from Yale in 1895, he entered the Union
Trust Company as a clerk and advanced
rapidly through various positions until
1905 when he became president. In 1923
he became chairman o f the board, which
position he held when the Union Trust
Company was consolidated with the First
National Bank o f Chicago in 1929. He
was elected co-chairman with the late
Frank O. Wetmore and since 1930 has
been chairman o f the board. Mr. Rawson has served as president o f the Chi
cago Clearing House Association and also
as a member o f the Clearing House
Committee.
Mr. Rawson has contributed largely of
his time and means to charitable and cul
tural organizations. He is particularly
active in those devoted to medical re
search and the care o f the afflicted; per
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Back

this

m anagem ent,

in s titu tio n

whose

a ctive

policies are

solidly

based on p ru d e n t banking.
to o ,

s ta ff

o ffice rs

Back o f it,
th o ro u g h ly

fa m ilia r w ith yo u r own p a rtic u la r problem s.
These are the q u a lific a tio n s which the
C ity N a tio n a l Bank o f C lin to n o ffers to
banks

and

th e ir

custom ers

th ro u g h

its

co rre s p o n d e n t service.

THE

C ity N a t io n a l Ba n k
C L IN T O N , IO W A
D IR EC TO R S

W. A. ANDERSON
President
C. A. ARMSTRONG
President C. F. Curtis
Company. Inc.
A. A. BENTLEY
President
Fidelity Life Association
A. P. BRYANT
Vice President
Clinton Com Syrup
Refining Co.
O. D. COLLI S.
President The Collis Co.
W. H. ITEN
Iten Bros.

E. J. CURTIS.
E. L. MILLER
Vice President Curtis Bros.
Attorney
& Co.
J. PETERSON.
G. L. CURTIS.
O. P. PETTY.
President Curtis Companies.
Vice President
Inc.
H. W. SEAMAN
G. W. DULANY, JR.
J. O. SHAFF.
President Eclipse Lumber
Farmer and Live Stock
Co.
Dealer
Chairman Climax Engineer
F. H. VAN ALLEN,
ing Co.
President
J.
D. Van Allen
MILO J. GABRIEL.
& Son. Inc.
Vice President
F. J. WARD
President Gabriel Lumber
Vice President and General
& Fuel Co.
Manager Eclipse Lumber Co.
B. M. JACOBSEN,
G. E. WILSON
Congressman Second Iowa
Pres. Clinton Bridge Works
District

N orthw estern Banker

S eptem ber 1933

Rem edy This A buse
There is on indefensible form o f tax
ation which affects every citizen, and
which deserves wider attention than it
has received.
That is the special taxation o f tire in
surance companies. During 1932, com
panies with membership in the National
Board o f Fire Underwriters, paid 4.0B
per cent o f their net premiums in taxes.
And these taxes are not all o f the sort
that are borne by all businesses. The
special insurance tax was originally
adopted by the states to pay fo r the ex
pense o f supervising departments. That
was well and good. But in recent years
the amount o f the tax has totaled in
finitely more than the departments re
quire— the merest fraction is used fo r
supervising and the balance goes to the
general fund.

F R E D E R I C K H. R A W S O N

haps the best known o f his philanthropies
being- the gift o f the Rawson Laboratory
to the Rush Post Graduate School of
Medicine o f the University o f Chicago.
He holds a number o f club memberships
and is an enthusiast on baseball and
sailing, and looks forward to having more
time fo r recreation.
No successor to Mr. Rawson as chair
man o f the board o f the First National
was elected.

What this amounts to is to make the
lire insurance policyholder pay a double
tax because o f his thrift— an appreciable
item in every premium. Unless there is
definite public opposition, there is always
the danger that this burden will be in
creased.
Fire insurance is one o f those indus
tries on which America depends. In
maintaining credit, in providing protec
tion to the property or individuals and
industries, it has earned a place as a
genuinely essential business. A ll classes

o f citizens are among its customers. It
certainly deserves equitable tax treat
ment.

P acific C o a s t
Trust C o n fe re n c e
The Eleventh Regional Trust Confer
ence o f the Pacific Coast and Rocky
Mountain states will be held in San Fran
cisco October 26th and 27th, it is an
nounced by R. M. Sims, president o f the
Trust Division o f the American Bankers
Association and vice president o f the
American Trust Campany, San Fran
cisco. The St. Francis Hotel will be con
ference headquarters.
Frank H. Lougher, trust officer Anglo
California National Bank, San Fran
cisco, it is announced, is general chair
man o f the conference committee. The
conference region embraces the states o f
Arizona, California, Colorado, Idaho,
Montana, Nevada, New Mexico, Oregon,
Utah Washington and Wyoming.

H eads
Legion Post
Charles C. Greene account executive
o f Carroll Dean Murphy, Inc., has been
elected Commander o f Advertising Men’s
Post o f the American Legion for the com
ing year. John W. Schaefle, vice presi
dent o f Baird & Warner, has been made
first vice commander.

To A d d ress
C o n fe re n c e

Iow a Uflio(jpapliinfj Clc^aipani]

N orthw estern Banker

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Federal Reserve Bank of St. Louis

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

Des Moines

GEORGE

H. R A G S D A L E

EDWIN G. RAGSDALE
S E C R E T A R Y

S eptem ber 1933

Norval A. Hawkins, vice president of
the Glen Buck Company, Chicago, inter
national authority on selling, former gen
eral sales manager o f the Ford Motor
Company, former director o f sales, ad
vertising and service fo r General Motors
Corporation, one time highest salaried
sales executive in the world, and author
o f the widely distributed “ The Selling
Process,” will speak on selling from the
idealistic point o f view at the trust de
velopment session to be conducted as a
departmental section o f the public rela
tions conference o f the Financial Adver
tisers Association in New York this
month, it is announced by Walter Y.
Tresckow, chairman o f the program com
mittee.
The conference will be held at the W al
dorf-Astoria. Hotel, September 11th to
14th.
Elton Bragg, manager o f the Guardian
Life Insurance Company, New York, and
director o f the L ife Insurance Training
Course o f New York University, nation
ally known lecturer on insurance sub
jects, will speak on methods trust com
panies might adopt to improve selling
technique in the light o f experience
gained by life insurance underwriters.
Harvey Weeks, assistant vice president
o f the Central Hanover Bank and Trust

47
Company, New York, is scheduled to
speak on the merchandising o f trust serv
ices. Mr. Weeks, form erly general agent
o f the Provident Mutual L ife Insurance
Company at Buffalo, is well known
throughout the country fo r his talks on
fundamentals o f salesmanship before
both insurance and trust groups.
Samuel Witting, second vice president
o f the Continental Illinois Bank and
Trust Company, Chicago, is scheduled to
speak on uncertainties overhanging trust
new business activities, his title being,
“ Removing the Cloud o f Uncertainty
from the Value o f New Trust Business.”
He has made an exhaustive study o f his
subject extending over a period o f many
months and is expected to reveal numer
ous illuminating pointers.
John W . Remington, vice president o f
the Lincoln-Alliance Bank and Trust
Company, Rochester, will speak on the
training o f trust solicitors.
Sheldon L. Stirling, assistant treasurer
o f the Union and New Haven Trust Com
pany, New Haven, will discuss the use
o f direct mail in promoting the sale of
trust services.
“ The exceptional calibre o f the speak
ers,” Mr. Tresckow states, “ promises un
usually valuable sessions.
Discussion
periods will follow each address and an
opportunity will be afforded each pres
ent to discuss troublesome selling prob
lems intimately with recognized leaders
o f their fields.”

Over

60 y ears of

Service

I owa

Banks and Bankers
V -<■
ss»

- ■" ■

■
•3.. i

So Far, N o
S ubstitute O ffe re d
All forms o f transportation have their
uses and advantages— but when, in time
o f emergency or otherwise, we need fast
and certain facilities fo r mass move
ment o f men and materials, we invariably
turn to the railroads.
W e have witnessed an example this
year, in the case o f the Civilian Conser
vation Corps. During April, May and
June, the rails carried 400,000 o f these
men without interrupting regular service,
and without a hitch. A t one time, at
Camp Knox, Kentucky, a train left every
two hours, bound for points as far dis
tant as Vancouver, Washington.
During late years, there has been a
good deal o f talk to the effect that the
rails are outliving their usefulness, but
there has been no convincing evidence.
The question, “ What will replace them?”
is unanswered. Not airplanes— they are
expensive and can handle the merest
fraction o f passengers and freight. Not
buses and trucks, which are unable to
meet railroad service in long-haul busi
ness. Not waterways, which are tre
mendously localized in the territories they
can serve and are dependent on climatic
conditions. The railroad has innate ad
vantages which none o f its competitors
can duplicate.

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Federal Reserve Bank of St. Louis

W®

i - i

First National Bank
Mason City, Iowa
A f filiated

with

Northwest

Bancorp oration

N orthw estern Banker

S eptem ber 1933

A ll Business
Should Pay Taxes
Whatever one may think o f public own
ership o f service utilities, there is no good
reason why these utilities should not pay
their fair share o f taxes to the support
o f the state government.
Advocates o f publicly owned utilities
claim certain basic advantages over pri
vately owned utilities; money on the
credit o f a city can (or could) be obtained
at a lower rate and the matter o f private
return is eliminated. That ought to be
a sufficient advantage. And yet cities
maintaining their own service utilities

have always reneged on paying their taxes,
thereby sponging on other cities and coun
ties of the state fo r the support o f their
state government. As a bludgeon to force
cities to go in fo r public ownership, it is
a form of blackmail. Or does the political
management o f publicly owned utilities
demand for their operation not only
cheaper money and elimination o f private
profit, but also a runout on taxes? It
looks as if public ownership advocates are
suffering from an inferiority complex— or
they know the extravagance o f political
management.
It is obvious that when a government
goes into business it is engaging in busi
ness and not in government. The users
o f municipal service should be ashamed
to place themselves in the tax evasion class.
— Stockton, California, Independent.

Spend and Save N ow

Modified Rates
on All Classes
of Rooms
400

ROOMS
WITH
B ATH

$
from

M ore than 150 Rooms Priced at
$2.50 and $3
Omaha’s largest and finest hotel,
the center of business, social
and travel activity.
Excellent
food in the beautiful main din
ing room, and popular Indian
Grill. Music by famous bands.

Operated by EPPLEY HOTELS CO.

N orthw estern B anker

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Federal Reserve Bank of St. Louis

S eptem ber 1933

A recent Dun & Bradstreet report accen
tuated a fact o f the utmost importance:
For a number o f months business re
covery has continued without recession,
and present signs do not indicate that any
recession will occur in the near future.
In other words, we are not having a
“ rise in the depression” now. We are
actually throwing off depression.
The
wise property owner will do well to think
that over. It means that the country is
through with bargain prices fo r commod
ities and services, that the terrific over
supply o f goods and labor isn’t going to
last much longer. It means higher prices.
It means that if we put off fixing our
houses and business property or rebuilding
the tottering garage fo r another few
months, we are going to pay a lot more
fo r what we get.
1 es, it’s time to build, to improve, to
repair. It will put money in your pocket,
save valuable property from going to
pieces— and demonstrate your faith in the
maxim that investment and employment
are cheaper and better than charity.

The Industrial Turnip
Industry is beginning to show operating
profits again, after three long years o f
financial drought.
That will come as good news to inves
tors, workers and the general public. But
the road ahead isn’t entirely strewn with
roses. There is an obstacle in the way o f
dividends, jobs and progress. That ob
stacle is taxation.
Anyone who reads the annual reports of
the larger American corporations cannot
help being impressed by their tax pay
ments. In various instances— such as
utilities— tax increases and new special
taxes have been sufficient to more than
offset any rise in earning power. The
investor— which means the individual who
has saved a few dollars and put them into
productive enterprise where they work for

the benefit o f the entire country— has never
been so heavily penalized fo r his thrift.
Management has never had so poor a
chance to produce results from efficiency
and far-sightedness.
At the moment the country is enthusias
tically endorsing the N RA plan fo r put
ting men back to work. Business has re
sponded gratifyingly. But it must be
realized that the best of intentions are
useless unless one has the means with
which to carry them out. Employers want
to raise wages and lower working hours—
but they can’t pick money from the air.
And the tax collector is making it in
creasingly difficult to operate or make a
profit.
High taxes, unemployment and indus
trial torpor go hand in hand. The old say
ing that you can’t get blood out o f a
turnip was never truer than now.
In conjunction with other relief meas
ures, why not inaugurate an actual reduc
tion in the aggregate tax collected from
citizens and industry ?

S ta rt Tow ard
Silver Solution
Government treasuries have been prin
cipally responsible fo r the depressed price
o f silver during the past few years. Some
o f the major silver countries have either
eliminated new coinage o f the metal alto
gether, or have reduced the silver content
o f each unit o f money. In this way tre
mendous surpluses have been created,
much o f which has been thrown into the
open market.
Mined silver has been
forced to compete with these surpluses,
and the constant oversupply has made
hope o f price recovery all but futile.
The silver agreement signed at London
should do away with this kind o f compe
tition. The silver holding countries, of
which India and Spain are the most im
portant, have agreed to rigidly limit sales.
The silver producing countries— Mexico,
the United States, Peru, Canada and Aus
tralia— have agreed to withdraw 35,000,000 ounces a year from the market for
four years.
So the silver plan is essentially the same
as the U. S. Government’s present cotton
plan— to balance production and consump
tion. Price strengthening is inevitable if
the agreement is kept. How far such
strengthening will go is still a question,
but there has been a good start made
toward solving one o f the most perplexing
and difficult o f international problems.

W e are told that utility rates have not
come down in proportion to the fall o f
commodity prices since 1929. The reply
is that they have not come down because
they never went up.— George B. Cortelyou, President, Edison Electric Insti
tute.

Advertising Exhibit
The Financial Advertisers Association’s
Public Relations Conference in New York
this month will have a unique and up to
the minute advertising exhibit, it is an
nounced by IT. A. Lyon, president o f the
association. The conference will be held
at the W aldorf-Astoria Hotel September
11th to 14th.
This year, the exhibits are to be grouped
by types of advertising campaigns, such
as trust services, safe deposit, investments,
savings, and commercial banking, Mir.
Lyon states. The new arrangement will
enable those interested to see at a glance
how banks throughout the country are
advertising to meet the unprecedented
problems o f the times.
In addition to the group exhibits, in
dividual displays will be shown by most
of the member banks. Explanatory mes
sages, outlining the purpose, reaction and
success o f each display, are to be included.
In addition the exhibits will be repro
duced in book form to enable convention
attendants to retain a permanent record.
Throughout the convention period, cer
tain hours will be designated fo r all to
gather in the exhibit room fo r the purpose
o f obtaining specific information from
exhibitors and o f personally exchanging
experiences and ideas.

Nothing to Worry About
Mr. Roosevelt’s inflationary powers
have aroused bitter dispute— to some they
mean a quick and decisive victory over
depression, to others they foreshadow the
potential collapse o f the country’s mone
tary system, in the manner o f post-war
Germany, when a box o f matches cost a
thousand marks one day, ten thousand the
next. The president has said little, moved
cautiously and sought opinions, facts and
advice.
Recently the inflationary movement got
underway. The president ordered the fed
eral reserve to go into the market to pur
chase federal securities. Under the new
law, it may buy up to $3,000,000,000 at
the option o f the president— in the first
week o f operation, it bought but $25,000,000, and there is every evidence that it
will go slowly. This type o f buying is in
stigated to expand commercial credit.
A financial advisor to the government
has been appointed, with the title o f Exec
utive Assistant to the Secretary of the
Treasury.
This official, Oliver M. W .
Sprague, was formerly economic advisor
to the Bank o f England, and will be a
much consulted member o f a department
which is short on banking authorities.
Finally the president asked Congress to
repeal the gold payment clause in debt
contracts. This will simply make theory
and practice jibe— ever since the banking
moratorium the treasury has refused to
pay in gold coin. A battle at once started
in the Congress between those who viewed

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Federal Reserve Bank of St. Louis

with alarm and those who pointed with
pride to the administration position. E x
amples: Said Representative Sprague,
democrat, Alabama, “ It is a declaration
of economic independence. It will re
store prosperity.”
Said Senator Reed,
republican, Pennsylvania, “ This is terrible
-— a blow to American good faith which
will be felt for over 100 years.” To most
dispassionate observers, and to the general
public, the truth lies somewhere between
those extremes of partisan sentiment. Gold
moratorium is undoubtedly a breach o f
contract-—on the other hand, in times o f
crisis, governments, as well as individuals,
have usually taken the expedient, as dis
tinct from the completely ethical course.

To those who have been frightened by
the specter of inflation, it may be said that
every indication is that the president will
withhold his power to the greatest possible
degree consistent with his program; that
there is no intention o f flooding the coun
try with unsecured, printing-press cur
rency.
Many have genius, but, wanting art,
are forever dumb. The two must go to
gether to form the- great poet, painter, or
sculptor.— Longf elloiv.
Curiosity is one o f the permanent and
certain characteristics o f a vigorous in
tellect.— J ohnson.

A Badge of Honor
N WAR, in the gloom of night
attack, soldiers wear a bright
badge on their shoulders to make
sure that comrades do not fire on
comrades.
On that principle, those who co
operate in this program must know
one another at a glance.

That is why we have provided a
badge of honor for that purpose; a
simple design with a legend, “ We
Do Our Part,” and I ask that all
those who join with me shall display
that badge prominently.
It is essential to our purpose.
— President Roosevelt.

IT IS NOT ENOUGH TO DISPLAY THE N. R. A.
EMBLEM ONLY IN YOUR BANKING ROOM
Show your colors where the entire community
may see and know that you are loyal— that you are
doing your part.
The Roosevelt R. M. A. hanger is an indoor hillboard which will carry your message of loyalty and
patriotism to the wall of every store, office and other
public place in your community.
Ask to See a C op y— N o Obligation

The Gerlach'Barklow Co.
Joliet, Illinois

N orthw estern Banker

S ep tem ber 1933

M easure fo r M easure

N ew to H im

Easy

An Idaho man was fishing in Lake
Crescent recently. He caught a big north
ern pike, the biggest he had ever landed
in his long and busy life. He was crazed
with joy, and he telegraphed his w ife:
“ I ’ve got one, weighs seven pounds and
it is a beauty.”
The following was the answer he got:
“ So have I ; weighs 10 pounds. Not a
beauty— looks like you. Come home.”

The attorney shook his head.
“ My dear man,” he said, “ there are
hundreds o f ways o f making money, but
only one that’s honest.”
The banker looked puzzled.
“ What’s that?” he asked.
“ Ah,” smiled the other, “ I thought you
wouldn’t know.”

A passer-by stopped to watch an old
man in his garden weeding.
“ Which weeds do you consider the
easiest to kill?” he asked.
“ W idow’s weeds,” answered the old
man. “ All you have to say is ‘wilt thou,’
and they wilt.”

Preface to M orals
Lady (to little boy) : “ My dear, does
your mother know you smoke ?”
Small B o y : “ Madam, does your hus
band know you speak to strange men?”

H o w W o u ld You Say It?
Six to th e G a llo n
Rev. (at baptism) : “ His name?”
M other: “ Algernon Phillip Percival
Reginald Mortimer Duckworth.”
Rev. (to assistant) : “ A little more
water, please.”

Design fo r Lunching
He’s gone, and forgot nothing but to
say farewell to his creditors.— Benjamin
Franklin.

Customer: “ Have you any good pork?”
Butcher: “ Good pork? Lady, my pork
will make better chicken salad than any
lamb you could buy.”

Bankers' W a n ts

The man is free who is protected from
injury.— Daniel Webster.

Strong M an: “ I hear that John, the
half-man and half-woman, is sick.”
Long M an: “ Yes, I know she hasn’t
been feeling himself lately.”

Sad S to ry
When he was very young he thought
That every woman could be bought;
And so he started as a joke
To prove his views— and now he’s
broke.

I W onder

This department of The Northwest
ern Banker is free to subscribers.
To non-subscribers, a charge of five
cents per word. In answering key
numbers, please enclose postage for
forwarding purposes. And remem
ber, this service is free to subscribers.
Position Wanted— Bookkeeper, teller
or assistant cashier. Young man, age 21,
single. Two years general banking ex
perience. Will work for small salary.
Best of references. Address the North
western Banker, No. 3212.
9
Position Wanted— Cashier in small
bank or teller in larger bank. Married.
Age 42. Eighteen years o f experience.
Address the Northwestern Banker, No.
3211.
8-9-10.
Position Wanted— Young man desires
place as bank teller or assistant cashier.
Experience and references. Address the
Northwestern Banker, No. 3213.
9

W ill I ever scrubbing floors be
Just because a man adores me?

tfnàcx Oo ¿Advertise, rs
h

B a n k e r s T r u s t C o............................................ 41
B a n k e r s ’ W a n t s ............................................ 50
C a rle to n D . B eh C o....................................... 20

I o w a -D e s M o in e s N a tio n a l B a n k . . . .
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52
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C e n tra l L ife A s s u r . S o c ie t y ....................
C e n tra l N a tio n a l B a n k & T r u s t C o . . .
C ity N a tio n a l B a n k .......................................
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C o n tin e n ta l Illin o is N a tio n a l B a n k ..
T he C u rtis H o t e l ............................................

19
28
43
45
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36
50

L
L iv e S to c k N a tio n a l B a n k , C h i c a g o .. 25
L iv e S tock N a tio n a l B a n k , O m a h a .. 34
L iv e S tock N a t'l B a n k , S io u x C ity . . 30

11
D r o v e r s N a tio n a l B a n k .............................

M
M e rc h a n ts N a tio n a l B a n k ........................

Now —■

A room with private bath

E p p le y H o te ls

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

$2.50

N
N a tio n a l S u rety C o r p o r a tio n .................
N o r th e rn T r u s t C o.........................................
N o r th w e s te r n N a tio n a l L ife In s. C o ..

in the city’s finest hotel.

N orthw estern B anker

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

26
42
29

F
F in a n c ia l A d v e r tis e r s A s s o c ia tio n . . .
F ir s t N a tio n a l B a n k , C h ic a g o ...............
F ir s t N a tio n a l B a n k , M ason C ity . . . .
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51
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O m ah a N a tio n a l B a n k ................................

24
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P o lk -P e te r s o n C o rp ....................................... 22

S eptem ber 1933

G
G e n e ra l M o to r s A c c e p ta n c e C o r p .. . .
G e r la c h -B a r k lo w C o....................................

PUBLIC
la

mate

RELATIONS

.JOB

iluUl C^J-ilvCttL iUL i
i'

Banks everywhere have been faced with a loss of public
confidence. They have found that their fate individually
and collectively is in the hands of their millions of
depositors. Today, the re-building of this faith is a
major problem. Can it be done? How?
To every bank officer this question of public relations
is a vital, individual problem. Perhaps for the first time,
public relations is universally acknowledged to be an
integral part of every bank’s activity.
The first opportunity for a comprehensive discussion of
the question of Public Relations will he the Convention
of the Financial Advertisers Association, to be held in
New York at the Waldorf-Astoria, September 11, 12,13,
14. The speakers are men recognized as leaders, thor
oughly qualified by experience and achievement. The
program gives a complete picture of the task and prac
tical means of accomplishing objectives.
Every active banker is invited to attend. Just now there
can be no more advantageous expenditure of time for
the bank executive. Shape your summer plans so that
you can surely be at the Waldorf in September.

Some of the

BAYARD F. POPE, Chairman Advisory Committee o f
the Marine Midland Trust Company. Subject: "What
the Alert Banker Should Expect of His Public Rela
tions Man.”
HENRY BRUERE, President o f the Bowery Savings
Bank. Subject: "A Business Man Comes Into Banking.”
JAMES L. WALSH, Vice-President, The National Bank
o f Detroit. Subject: "Facing the Facts of Public Distrust."
T. R. PRESTON, President o f the American National
Bank, Chattanooga, form erly President o f the Ameri
can Bankers Association. Subject: "The Public’s Obli
gation to the Banks.”
GEORGE W. DAVISON, Chairman o f the Board o f
the Central Hanover Bank and Trust Company, New
Yoik. Subject: "The Need for Cooperation.”

GUY EMERSON, Vice-President o f Bankers Trust
Company, New York, form erly President Reserve City
Bankers Association.

Governor HERBERT H. LEHMAN of New York,
form erly a partner o f Lehman Brothers, investment bank
ers, will make an earnest effort to he present. His active

interest in politics and successful public record indicate
a firm grasp of the important task of public relations.

Speakers on the General Program
FRANCIS H. SISSON, President o f the American
Bankers Association, Vice-President o f the GuarantyTrust Company o f New York, will preside at the banquet.

It is expected that two or three other speakers, also of
national prominence, will address the group.

Colonel ALLAN M. POPE, form er President o f the
Investment Bankers Association, President o f The First
o f Boston Corporation. Subject: "The Obligation of the

Departmental Discussions — Departmental discussions will get
down to brass tacks on practical details of trust, savings, com
mercial banking, investment and public relations programs.

Investment House to the Public.”

The Exhibits—Outstanding advertisements of the year will be on
display. Opportunity will be afforded for discussion with those
responsible for the creation of this material.

JOHN H. PUELICHER,/firmer President o f the Am er
ican Bankers Association, President o f the Marshall and
Ilsley Bank, Milwaukee. Subject: "Place of the Em

ployee in Public Relations Work.”
18th

ANNUAL

CONVENTION

F I N A N C I A L
PRESTON

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Federal Reserve Bank of St. Louis

REED,

—

The Waldorf-Astoria—The new Waldorf is one of the world’s
fine hotels, an experience in itself. Special rates: single rooms,
$4.50 and $5.25 per day; double rooms $7.00 and $7.50. The
Waldorf is located on Park Avenue at Fiftieth Street.

THE

fVALDORF

A D V E R T I S E R S
SECRETARY

• 231

SOUTH

SEPTEMBER

A S S O C I A T I O N

LASALLE

STREET

•

CHICAGO

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Federal Reserve Bank of St. Louis

A F E -K eeping
of SECURITIES

WENTY-ONE TONS OF STEEL guard the entrance to the
vault system of Iowa’s Largest Bank, protected by a tamper
proof alarm system. Here, in a special vault of the most modern
construction, are kept the securities of our correspondent banks
and their customers.

Our Safe-Keeping Service offers the protection of the latest
type dual-control vaults, insurance against theft or loss from any
cause, plus service of handling securities, clipping coupons, advis
ing of maturity dates and other matters.
W e invite inquiries on this feature of
our complete service to hanks and hankers

Iowa - des Moines national bank
& Trust company
A ffilia te d •with

NORTHWEST

BANCORPORATION

Full text of The Northwestern Banker : September 1933, 38th Year, Number 554

FRASER