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SEPTEM BER

1940

A T L A N T I C C IT Y S K Y L I N E
T h e A m eric a n B a n k ers A s s o c ia tio n h o ld s it s 1940 C o n v en tio n
in A tla n tic C ity S ep tem b er 22-26

m

.. B. A . Convention

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Federal Reserve Bank of St. Louis

Page 13

Iowa Bankers Convention
Pases 57 to 102

?

We Salute the Iowa Association
T h e M erchants ¡National B ank o f Cedar R apids exten d s
g reetin g s to the 1 9 4 0 C onvention o f the Iowa B an k ers
A ssociation .
W e have b oth adm ired and taken part in
A ssociation w ork sin ce the Iowa A ssociation was organized
fifty-th ree years ago.
In th is fifty-n in e year old b an k , co o p era tio n with oth er
------------------- banks is a c o rn ersto n e o f ou r service. T hat is why so m any
lea d in g Iowa banks are n u m b ered in ou r large list o f cor
resp o n d en ts, m an y o f w h om have en jo y ed M erchants Na
tion al c o o p era tio n over a lo n g p eriod o f years.

OFFICERS
J ames E . H am ilton , C h a irm a n
S. E. CO'QUILLETTE, P re s id e n t
H. N. B oyson , Vice P re s id e n t
R oy C. F olsom , V ice P re s id e n t
Mark J. Myers , V ice P re s. & C a sh ie r
George F. M iller , V. P re s. & T r. Officer
M arvin R. S eldein, V ice P re s id e n t
F red W. S m it h , V ice P re s id e n t
J ohn T. H amilton II, Vice P re s id e n t
R. W. Manatt , A s s is ta n t C a sh ie r
L. W . B roulik , A s s is ta n t C ash ier
P eter B ailey , A s s is ta n t C ash ier
R. D. B rown , A s s is ta n t C a sh ie r
O. A. K earney , A s s is ta n t C ash ier
S tanley J . M ohrbacher , A sst. C ash ier
E . B. Zbanek , B u ild in g M a n a g e r

MERCHANTS
M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N

N o rth w e ster n B an k er, p u b lish e d m o n th ly by the D e P u y P u b lis h in g C om pan y, In c ., a t 527 7th S tr e e t, D e s M o in e s Io w a
S u b sc r ip tio n , 35c per cop y, $3.00 per year. E n tered as s e c o n d -c la s s m a tter a t the D e s M o in e s p o st office. C o p y rig h t, 1940.


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Federal Reserve Bank of St. Louis

NATIONAL BANK
*

Cedar

Rapids,

Iowa
Northwestern Banker Septem ber 19W


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Federal Reserve Bank of St. Louis

4

REASONS W HY

UNIFORM

BANKS PREFER

LA M O NTE SAFETY

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W h e n a lin e of W e s t P o in te r s g o e s s w in g in g by» Your a d m ir a 
tio n is n ot for th e in d iv id u a l but for th is s p le n d id b o d y of m e n a s
a w h o le » » » A n d in th e p a r a d e of c h e c k s th a t p a s s th ro u g h
y o u r in stitu tio n , y o u c a n n o t fa il to b e im p r e s s e d b y th e p r e 
p o n d e r a n c e of im p o rta n t b a n k s a n d b u s in e s s h o u s e s th at u s e
"La M o n te " — a s w e l l a s b y th e u n ifo r m ly fin e a p p e a r a n c e a n d
o b v io u s q u a lity of " th e s a f e t y p a p e r w ith th e w a v y lin e s " .

G E O R G E LA M O N T E & S O N , NUTLEY, N. J.
Northwestern Banker September 194-0

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Federal Reserve Bank of St. Louis

■
Broaden

|

customer

service

tv i t b

Chase

.......
correspondent

facilities

j

TRADE OPPORTUNITIES
in LATIN AMERICA

T he attention of
manufacturers

and

merchants

throughout the United States
today is focused on the possi
bilities for increasing trade with
Latin-American countries.
The Chase National Bank maintains branches in several lead
ing cities in the Caribbean area, and has long established relation
ships with financial institutions in every trade center in Latin
America. The Foreign Department of the Chase at the head office
in New York thus has a timely and well-rounded knowledge
of business and financial conditions in these countries.
I he benefits of these facilities and first hand connections are
available to Chase Correspondent Banks.

THE CHASE NATIONAL BANK
OF THE CITY OF NEW YORK
Member Federal Deposit Insurance Corporation

Northwestern Banker September 19'if)

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Federal Reserve Bank of St. Louis

6

The
Wallace - Homestead
Com pany Printing
Plant,19th and Grand
A ve., where visitors
are always welcome

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louufl BnnKeRS Rssocmnon
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S€PT€mB€R
D€s

9 , 10

and 11

m o m € s

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Iowa Bankers Associ ation Standard Forms
For the convenience of Iowa Bankers, we carry in stock for im
mediate delivery Iowa Bankers Association Standard Forms—

Real Estate Mortgages Nos. 6 and 28/ Chattel Mortgage No. 29;
Conditional Sales Contract N o. 26/ Conditional Sales Contract
Note only N o. 2 6 A ; Extension of Time for Payment A g re e 
ment N o. 41 (Supplemental to Form No. 25)/ Personal Loan
Notes Nos. 42, 43 and 44 and Chattel Mortgage No. 45 (for
use with Personal Loan Note No. 44).

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N orthwestern Banker Septem ber 1940

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Federal Reserve Bank of St. Louis

U SED

FO R T H IS

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C n tytäiU n fj,

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

Banker

A D V E R T IS E M E N T A R E

f or
K A U FFM A N

Mor e
AND

S A N S S E R IF

Than

25

Years

7

Fi« NATURAL CITY
to LATII AMERICA
r I ''HIS year, more than ever, business men are giving new
thought to those Americas that lie beyond our border.
The wealth of opportunity in South and Central America
brings new inquiries to this bank every day.
For more than 26 years National City has been the liaison
unit between the business and banking of the Americas.
First American national bank to establish an overseas
branch — in Buenos Aires in 19 1 4 — National City has ex
perienced every conceivable contingency which trade with
Latin American countries has encountered.
Our facilities have been developed until today there are
41 National City branches in South America and the
Caribbean countries.
National City outposts help to bridge the differences of race
and language, and to interpret the banking laws, exchange
and customs regulations. They have acquired an unrivaled
knowledge of local conditions.

A t o u r H e a d O ffice a g r o u p
of

N a t i o n a l C i t y o ffic ia ls

is e x c l u s iv e l y e n g a g e d
h a n d l i n g L a ti n

These international "trade embassies” are at the disposal
of Am erican banks through Head Office in New York or
through Correspondent Banks the country over.

in

A m e r ic a n

r e l a ti o n s h ip s

THE

IATI0IAL CITY ItAM OF MW YORK
H EA 1I

O F F IC E :

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{ S u h -branches)
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B a rr a n q u illa

C a rd e n a s
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M a ta n z a s
S a n tia g o

E S T A B L I S H E D

R R A N CH ES

D

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C H EA TER

M

o m in ic a n

L im a

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P anam a
Panam a
C o lo n

R ic o
S an Ju an

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e x ic o

M e x ic o C i tv
C iu d a d T ru jillo
L a V ega
P u e rto P la ta
S an P e d ro de
M a c o ris
S a n t i a g o d e lo s
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1812

M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n

BRANCH ES,

A F F IL IA T E S

AND

CO R RESPO ND EN T

IM P O R T A N T

C IT Y

OF

BANKS

THE

IN

EVERY

C O M M E R C IA L L Y

W ORLD

Northwestern Banker Septem ber 19W

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

8
P R O T E C T I N G

I N V I S I B L E

VA L U E S — N O .

16

FIRE E X P E L S TENANTS— W ho p ays for lapserl rentals?

R en t In su r n ee is n eed ed to reim b u rse for th is u n e x 
p ected loss. H o m .; gen ts a d b rok ers read ily p ro v id e it.

BA N K ERS AND CREDIT MEN AGREE

II pays to protect
INVISIBLE

PROTECTION PLUS — ’r¥ e p reserved ren tal in co m e in
sp ite o f th e fire,” says th is b an k er to h is board ol
d irectors, "by carrying R en t In su ran ce w ith T h e H o m e .”

tallies
W

HEN fire or another peril wrecks
p ro p e rty , it also d estroys values

th a t th riv e in sid e a p h ysical s tru c tu re .
These invisible values

can he insured

u n d e r vario u s coverages provided by

EARNINGS STOPPED— U se & O ccu p an cy In su ra n ce is a
safegu ard again st lo ss o f earn in gs in terru p ted by fire or
o th e r m ish ap s. A good coverage for you r borrow ers.

THE HOME through its agents and brokers.
•
If you manage property or make loans, you
will find Rent Insurance and Use & Occupancy
In su ra n c e v a lu a b le co v erag es n e e d ed to
protect invisible values. A sk T h e H ome agent
or your own broker for further particulars.

BORROWERS are b etter p rotected w h en th eir ea rn in gs are
in su red . U se & O ccu p an cy In su ra n ce stren g th en s you r
loan by co n tin u in g th e b orrow er’s in co m e after m ishap.

INSURANCE
COMPANY

THE HOME
NEW YORK
FIRE — AUTOMOBILE — MARINE

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Federal Reserve Bank of St. Louis

and

ALLIED

LINES

OF

INSURANCE

SEPTEMBER
19 4 0
FORTY-FIFTH Y E A R

NUMBER 638

Oldest Financial Journal West of the Mississippi River

IN THIS ISSUE
Editorials
A cross th e D esk fro m th e P u b lish e r
C LIFFO RD DE PUY
Publisher

R A L P H W. M O O R H E A D
Associate Publisher

H EN R Y H . H A Y N E S
Editor

10

Feature A rticles
F ro n tisp ie c e ........ ................................................. ........................................................................
A. B. A. C onvention P ro g r a m ................................................ ...............................................
W h a t th e C o u n try B a n k e r S ay s— S u rv e y .......................................................................
T he C ity B a n k e r A n sw ers— S u rv e y .......................... _.................................. ......................
In s ta llm e n t L en d in g Is P ro fita b le ...................................................Verne T. B onnett
N ew s a n d V iew s............................................ ...............................................Clifford De B uy
H ow O ur D ire c to rs D ire c t O ur B a n k .................................................... ..............................
H ow R a te s an d C osts A ffect S afe D eposit P ro fits ............ John J. Driscoll, Jr.
N o rth w e ste rn B a n k e r D ig e s t .................... ...........................................................................
W ro n g fu l D ish o n o r of a Check— L egal D e p a rtm e n t

12
13
14
15
17
18
20
21
24
26

Bonds and Investments
J. STUART D A V IS
Associate Editor

527 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

NEW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth A ve.

Suite 1 202

Telephone MUrray Hill 2-0326

M IN N E A P O L IS O FFICE
J. A . Sarazen

T he M o n th ’s M a rk e t M a n e u v e rs............................. ................. ..... . Jam es H. Clarke
Io w a In v e s tm e n t B a n k in g N ew s....................................... ....... ...........................................
N e b ra sk a In v e s tm e n t B a n k in g N ew s.............................. ................................................

29
33
39

State Banking News
N e b ra sk a N ew s ..........................................................................................................................
O m aha C le a r in g s .................................................................................. ............................
L incoln L o c a ls ............................................................... ........ ...... .....................................
S o u th D ak o ta N ew s.................................................................. .................................................
M in n eso ta N ew s................................................... .................................................. ....................
T w in C ity N ew s............................ ......................................... .James M. Sutherland
N o rth D a k o ta N ew s............................................................................... ................................. .
M o n ta n a N ew s................... ............................... ............................................................ .............

41
43
45
47
49
52
54
55

Iowa Convention Section
T he C onvention P ro g ra m ............................................ ...... ......................................................
C onvention C om m ittee C h airm en — P i c t u r e s ............................... .................. ...............
T h o se A tte n d in g th e C onvention—
P ic tu re s ............................................................63, 66, 70, 75, 81, 87, 90, 93, 95,
F o r Y o u r E n te r ta in m e n t...................................................................................................... .
A d d in g M achine C o n te st__________ _____ _______ ___ _______ ___________ ___ __

57
60
99
64
74

Associate Editor
Telephone Hyland 0575

Savings and Loan
R ecen t D evelopm ents in C om m ercial B an k P o licy ............ W alter L ich ten stein 103

The Directors’ Room
A F e w S h o rt S to rie s to M ake You L a u g h .... .......................................................... .

106

M EM BER

Audit Bureau of Circulations
Financial Advertisers Association

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Federal Reserve Bank of St. Louis

Across the Desk
From the Publisher

Correspondent
Bank Survey

this issu e

o f th e N o r t h -

B a n k e r w ill be
f o u n d a v e r y c o m p le te a n d
v e r y a u th e n tic c o r r e s p o n d e n t b a n k s u r v e y c o v e r
ing' b o th v ie w p o in ts of th is v e r y i m p o r ta n t q u e s 
t io n ; firs t, fro m th e c o u n tr y b a n k e r ’s v ie w p o in t,
a n d se co n d , f ro m th e c ity b a n k e r ’s s ta n d p o in t.
w estern

W e are sure that- you will find much valuable
inform ation in this survey in this issue of the
N o r t h w e st e r n B a n k e r , and recom m end your
read in g it carefully.
N a tu rally there were some city bankers who
disagreed w ith various suggestions of the country
bankers, and there were some country bankers
who did not alw ays pin roses on th eir city corre
spondents ; but, by and large, we believe th a t the
relationship of city bankers and country bankers
has been a very satisfactory one.
One country banker who always speaks his
m ind was likew ise outspoken in answ ering the
N o r t h w e st e r n B a n k e r questionnaire, and to a
few of the questions he gave the following replies :
1. “ Do you want assistance from your city cor
respondent on your investment program? If so,
in what way would you wish assistance on your
investment program?— ‘Have not found a city
bank or its personnel that has the faculty or power
to look a damn bit further into the future than the
average peewee banker. ’
2. “ Would you be interested in having your city
correspondent help you install a cost analysis sys
tem in your bank to help comply with the Wages
and Hours law?— ‘Hell, NO. Our experience has
been that it would bust the bank trying to main
tain the goddam system. ’ ’ ’
The answ er to question No. 1: “ Do you w ant
assistance from your city correspondent on your
investm ent p ro g ra m ? ” were 43 per cent “ Y es,”


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Federal Reserve Bank of St. Louis

39 per cent “ N o,” 16 per cent said they are now
gettin g such service.
In answ ering question No. 2: “ W ould you be
interested in having your city correspondent help
you install a cost analysis system in y o u r b an k to
help comply w ith the W ages and H ours la w ? ” ,
64 per cent replied “ N o ,” 30 per cent said “ Y es,”
and 6 p er cent said th a t they have such a system.
P erh ap s city bankers do not have the ability
to look into the crystal ball and get all the answers,
b u t those w ith whom we are acquainted sincerely
tr y to give the best possible service they can to
th eir correspondent banks.
As fa r as the W ages and H ours law is concerned,
we fra n k ly agree w ith w h at our country ban k er
frien d had to say in answ ering question No. 2.
C ertainly we have had more laws, rules and
regulations for banking passed d uring the New
D eal adm inistration th a n a t any tim e in the p rev i
ous history of Am erica, and m any of them are
unnecessary and only entail a g re at deal of ex tra
work.
The relationship between city and country b an k 
er is a very vital one in the A m erican system of
banking, and it should be studied carefully and
seriously. W e hope this N o r t h w e s t e r n B a n k e r
survey will be of some help to you.

Taking the Mystery
lf d em o cracy is to surOut of Banking
vive an<J if the presen!;

independent system of
banking is to continue to exist in this country the
public m ust be b etter inform ed on the functions of
banking.
T aking the m ystery out of banking is a real
job for every A m erican b anker to help accomplish.
W ork along this line has been done very effec
tively by the P ublic R elations and E ducatio n Com-

11

m ittee of the N ebraska B ankers Association nnder
the able chairm anship of W illiam N. M itten, presi
dent of the Stephens N ational B ank of Frem ont,
N ebraska.
In a recent le tte r to us Mr. M itten explained
w h at th ey have done by sa y in g :
“ Know ing, of course, th a t you are interested
in w h at the m any com m ittees of each state associa
tion is doing, I th o u g h t perhaps you w ould be in 
terested in looking over the pam phlet recently
p rep ared by the P ublic R elations and E ducation
Com mittee of the N ebraska B ankers Association.
These pam phlets are now in the hands of the
bankers of the state and our com m ittee is trem en 
dously pleased w ith the favorable comments they
are receiving.
“ You m ay also be interested to know th a t our
com m ittee sent out letters to all the service clubs,
civic organizations and w om an’s clubs in the state
req u esting them to call on th eir local banker, ask 
ing him to arran g e for a program so th a t the story
of ban k ing m ay reach the ears of every business
m an and wom an of each com m unity. Likewise,
le tte rs are being sent to the principals of every
high school asking for the o p p ortunity to appear
before the stu d en t body so th a t the b anker m ay
have the o p p o rtu n ity to present a few facts about
banking. In o th er w ords, we are attem pting to
take the m ystery out of banking, so to speak, by
tellin g people som ething about the problem s, and
ju st w h at a bank m eans to a com m unity.
“ This program has been accepted by the various
civic organizations to such an extent that it is
going to be rather difficult to supply speakers to
fill all the requests. We are, however, making a
noble effort to have every banker in the state
become so interested in our program that every
one w ill be glad for the privilege to tell something
about their business.”
If the bankers of N ebraska and every other
state can tak e the m ystery out of banking by such
a pro g ram as has been outlined here th ere will
be few er attac k s on our banking system.
The m ere fa c t th a t Mr. M itte n ’s com m ittee is
having trouble to supply speakers to fill all the
requests shows th a t there is a dem and on the p a rt
of the public to know more about banking.
“ How to Sell Y our B ank to Y our Custom ers
and to the P u b lic ” is the booklet prep ared by
the N ebraska B ankers Association Committee on
P ublic R elations and gives complete details as
to the whole schedule of w hat they are doing.
Get one of these booklets now and do y o u r p a rt
in your com m unity to help tak e the m ystery out
of banking.

No one objects to gov
ernm ent safeguards for
the funds of p riv ate de
positors.
No one objects to rules and regulations which
banks and bankers should follow.
W h at bankers do object to and w hat the public
should object to is to see th a t the banking system
of A m erica does not get into the hands of p o liti
cians who can control it fo r th eir own designs.
The present dual system of banking as it now
exists is the best plan yet devised by any country
in the world.
As W. A. McConnell, executive vice p resident of
the Commercial N ational B ank of L ittle Rock,
A rkansas, said recen tly : “ It is impossible to con
v ert the entire w ealth of A m erica into cash. T hat
is exactly w hat the people of this country tried to
do in 1933.”
A m erica has grow n g reat under a b anking sys
tem which has been priv ately owned and as Mr.
McConnell fu rth e r s a id :
“ The most im p o rtan t aspect of our banking sys
tem is its priv ate ownership, for w ith o u t private
ow nership of banks we cannot have a credit system
free from political control and w ithout an inde
pendent credit system we cannot have free en ter
prise, and w ithout free enterprise we cannot have
w hat has made the U nited States a g reat nation.
“ The g reatest safeguard to this priv ate ow ner
ship of banks is the dual n atu re of the system.
D estroy the dual credit system and you destroy
independent banking. F or, if we had b u t one sys
tem of banking, composed of only national banks,
it would be but an easy step to complete F ederal,
political control of all credit and th a t would mean
the end of dem ocracy.

Let's Keep Banks
Free from PolticaI
Control

“ Ivarl M arx, the a u th o r of the fam ous com
m unistic m anifesto, fully realized this. The first
of his 10 points was th is: ‘Centralization of credit
in the hands of the State by means of a national
bank with state capital and an exclusive monop
oly. ’ And Lenin, who is regarded as the father of
modern communism, had this to say: ‘Through
the nationalization of banking they (the small
business men) may be tied hand and fo o t.’ ”
I f the tim e ever comes when the banking busi
ness of A m erica is nationalized we will go the way
th a t Italy , G erm any and Russia and all the coun
tries w hich they now control have alread y gone.
T h at is not the w ay th a t A m erica should go, or
we believe w ants to go. T herefore bankers should
fight to continue to keep banks free from political
control and to continue the priv ate ow nership of
banks and our dual system of banking.

Northwestern Banker Septem ber 19k0

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Federal Reserve Bank of St. Louis

12

Northwestern Banker Septem ber 1940

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

Program
A . B. A . Convention

A T L A N T IC

C IT Y

September 2 2 - 2 6

R O B E R T M. H A N E S

ROGRAMS for th e g en eral b u si
ness sessions and th e an n u a l m eet
ings of th e principal divisions of
th e A m erican B an k ers A ssociation, to
be held d u rin g th e A.B.A. convention
a t A tlantic City, Septem ber 22-26, w ill
provide a m axim um am o u n t of con
sideratio n and discussion of c u rre n t
b an k in g problem s as w ell as of th e
A ssociation’s re g u la r business, it is
anno u n ced by R obert M. H anes, A. B.
A. p resident. Mr. H anes is p resid en t
of th e W achovia B ank and T ru st Com
pany, W inston-Salem , N o rth Carolina.
T he pro g ram for th e v ario u s m eet
ings include addresses by o u tstan d in g
a u th o ritie s on ban k in g and econom ics
an d th ey also provide am ple oppor
tu n ity for “ro u n d ta b le ” discussion of
c u rre n t b an k in g subjects.
P ro g ram s for th e general business
sessions, th e division m eetings, and
th e ro u n d table conferences follow:

P

General Convention
F irst Session
W ednesday, Septem ber 25, 1940

9:45 A. M.—Music.
10:00 A. M.
Call to O rder—P resid en t R obert M.
H anes.
Invocation.
R ep o rt—Official Acts and Proceedings
of E xecutive Council.
A ddress of th e P resident.
A ppointm ent of R esolutions Com m it
tee.

F o rtie th A n n iv ersary of th e A m erican
In stitu te of B anking Section.
In tro d u ctio n of F o rm er P residents
A m erican In stitu te of B anking
Section—H a rry R. Sm ith, A ssist
a n t Vice P resid en t B ank of A m er
ica, NT & SA, San Francisco, Cal.
P resen tatio n of N ational E d u cation
al D irector A m erican In stitu te of
B anking Section—J. L. D art, Vice
P resident, F lorida N ational Bank,
Jacksonville, Florida.
A w arding of A g ricu ltu ral Commission
Plaque.
A ddress—The H onorable Clyde R.
Hoey, G overnor, S tate of N orth
Carolina, Raleigh, N orth Carolina.
C om m unications.
A nnouncem ents.
Second Session
Thursday, Septem ber 26, 1940

9:45 A. M.—Music.
10:00 A. M.
Call to O rder — P resid en t R obert M.
H anes.
Invocation.
K now Y our B ank—E lb ert S. W oosley,
Vice P resident, Louisville T ru st Co.,
Louisville, K entucky.
The H onorable C arter Glass — P resi
dent R obert M. H anes.
U nfinished Business.
C om m unications.
New Business.
R eport of R esolutions Committee.
A nnouncem ents.

R eport of N om inating Com m ittee and
E lection of Officers.
In stallatio n of Officers.

National Bank Division
Monday, Septem ber 23, 1940-— 2:00 P. M.

Call to O rder—P resid en t M elvin Rouff.
A ddress of the P resident.
A ppointm ent of Committees.
F in an cin g the Defense P rogram —W.
R andolph Burgess, Vice C hairm an
of the Board, The N ational City
Bank, New York, N. Y.
A ddress—Dr. M arcus N adler, P rofes
sor of Finance, New Y ork U niver
sity, New York, N. Y.
U nfinished Business.
New Business.
R eports of Com m ittees.
E lection and In stallatio n of Officers.

State Bank Division
Monday, Septem ber 23, 194(1— 2:00 P. M.

Call to O rder—P resid en t W illiam S.
E lliott.
A ddress of the P resident.
A ppointm ent of Com m ittees.
Our P a rt in a New W orld—W illiam A.
McDonnell, E xecutive Vice P resi
dent, Com m ercial N ational Bank,
L ittle Rock, A rkansas.
The System of F ree E n te rp rise —An
A nsw er to its Critics—Dr. W illiam
A. Irw in, N ational E ducational Di
rector, A m erican In stitu te of B ank
ing Section.
(T u rn to page 84, please)
Northwestern Banker Septem ber 19 W


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Federal Reserve Bank of St. Louis

14

C orresponden t Ba n k S ervice
What the

What the

COUttttyBanker

City Banker

The Country Banker Speaks: —
ROM tim e to tim e th e N o r thw est 
ern B anker has conducted su rveys
on co rrespondent b an k relationship.
T h e previous su rv ey w as m ade ten
y ears ago. M any th in g s vitally affect
ing ban k in g and financial in te re sts of
all kinds have h appened d u rin g these
ten years. By now, how ever, b u si
ness and ban k in g conditions have
again assum ed m ore or less steady
progress—are again “in th e groove”,
as w e m ig h t say, so th e N orthw estern
B anker now p resen ts its C orrespond
ent B ank R elationship S urvey of 1940.
Q uestionnaires ask in g th e questions
appearing on th e accom panying ch arts

F

CHART NO. 1
W hat is the m ost v a lu a b le service
your city co rresp o n d en t n o w ren d ers
you ?

w ere sent to 1,000 co u n try banks in
Iowa, M innesota, N ebraska, N orth Da
kota and South Dakota. The p er
centages and o ther inform ation ap 
p earin g in th e ch arts w ere tak en from
replies received to the questionnaires.
To obtain unbiased opinions, b ankers
w ere asked not to sign th eir nam es
or nam es of th e ir banks.
Since th ere are tw o sides to corre
spondent bank relationship, a n u m 
b er of questionnaires w ere also sent
to city banks, asking them to tell us
w h a t th e co untry b an k er could do to
m ake his correspondent service of
even m ore value th a n it is a t th e
p re se n t tim e. Views of both the
co u n try and city b an k ers are p re
sented in this survey.
C om m enting first on th e survey
m ade am ong co u n try bankers, we
shall m ake little reference to th e
c h a rts since th ey are self-explanatory.

A n u m ber of bankers, how ever, ex
pressed them selves a t m ore length
and in a m an n er w hich did n ot alw ays
p erm it of m ention being m ade in th e
charts. W e are quoting a num ber
of th e ir com m ents w ith reference to
th e questions asked on each chart.

Chart No. 1
“Our city correspondents are serv 
ing us in th e sam e fine w ay w hich we
tru s t we are serving th e people in th is
com m unity w ho deal w ith us.”
“Our correspondents ren d er us any
service we call on th em for, th a t is
w ith in reason.”
“C ashing checks w ith o u t charge.”

Clearing- C hecks
43%

CHART NO. 2
D ep o sito ry for
M on ey an d S ecu rities
20 %

In v e stm e n t A d vice
15%

W hat p rin cip a l factors p rom p ted
you to select you r p resen t city corre
sp on d en t ?
P e r so n a l A cq u a in ta n ce
and F rien d sh ip w ith
Officers
32%

S erv ice
28%

■
I

S u p p ly in g
C urren cy and S ilver

L o ca tio n

6%

22 %

C redit In fo r m a tio n

A g e and S ize
18%

5%

Northwestern B anker Septem ber 1940

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Federal Reserve Bank of St. Louis

CHART NO. 3-A
If so, in w hat w ay do y o u w ish as
sistan ce in yo u r in v estm en t program ?

15

CHART NO. 4

CHART NO. 5

CHART NO. 6

W o u ld y o u b e in te rested in h avin g
your city corresp on d en t h elp y o u in 
stall a cost a n alysis system to h elp you
co m p ly w ith th e W ages and H ou rs
law ?

N am e on e or m ore w ays y ou th in k
your city corresp on d en t can serve y ou
better.

W hat is the m ost freq u en t co m 
p lain t, if any, y ou can m ake ab ou t the
service of you r city co rresp o n d en t?

P r e s e n t S erv ice
S a tis fa c to r y
67%

N one
82%

In te r e st on D a ily
B a la n ce s

M iscella n eo u s
10 %

H a v e F ield M en
C all O ften er
8%

S o lic it L o a n s in Our
T errito ry

B e M ore E x p lic it in
In v e stm e n t A d v ice

S erv ice Is S low

10%

4%

4%

8%

“A read y m a rk e t for excess lines of
cred it (if we ever have any) w ith a
m in im u m of red tap e.”
“F u rn ish e s us w ith a good place to
loaf w hen we v isit th e city in w hich
o u r co rresp o n d en t is located.”
“S atisfaction of know ing if I need
th e ir advice on som e problem , I can
call on th em .”

Chart No. 2
B efore giving b a n k e r com m ents on
th is question, m ay we call y o u r a t
te n tio n to L e tte r No. 6 ap p earin g in
th e City B an k er Survey. T h a t letter,
a n d th e w ay co u n try b an k ers a n 
sw ered th is question, are p re tty m uch
dow n th e sam e road. A no th er in te r
estin g fact—w h en we asked th is sam e
q uestion te n y ears ago, Service headed
th e list, and P erso n n el stood th ird .
Now P erso n n el stan d s first, and S erv
ice second.
H ere are th e com m ents:
“H ave been w ith th e sam e b ank
fo r fifty y ears.”
“T h eir p ast record, both as to safety
an d frien d ly service.”
“T h irty y ears of good service and
accom m odations.”
“H av en ’t changed for m an y years.
O riginally selected because of conser
v ativ e o peration and m anag em en t.”
“The perso n al in te re st th e y tak e in
y o u r in stitu tio n .”
“T h eir readiness to g ra n t help d u r
ing depression tim es.”
“The good record of th e fair and
honorable dealing of th e in stitu tio n .”
“Stock of co rresp o n d en t selling a t
h ig h est figure in th e city.”
“T h eir sincere ap preciation of our
account, an d th e good fellow ship th a t
alw ays atten d s our m eetings.”

Chart No. 3
T en y ears ago, 62 p e r cen t answ ered
Yes to th is question, and 38 p er cent
an sw ered No. Now 45 p e r cent a n 
sw er Yes, and 39 p er cen t an sw er No.
H ow ever, in th e p re se n t su rv ey th e 16
p er cent th a t say th e y are G etting

Give A d v ice on
B u sin ess T rends
7%

It Now v ery likely should be classi
fied w ith those w ho say Yes, although
we had no w ay of know ing from the
m an n er in w hich th ey answ ered the
q uestionnaire. If th is is tru e, the
percentages given now w ould be al
m ost identical w ith those of ten years
ago.
Comments:
“Our city correspondent gives ad
vice on in v estm en ts th a t is too p ro 
tectively conservative to be practical
in operation.”

I

In v e stm e n t In fo r m a tio n
N o t D efin ite

2%

“Could ren d er a real service by ad
vising w h at to buy, and w h at not to
buy.”
“T his service has been exceedingly
valuable to u s.”
“M any co u n try banks w ere closed
because of depreciated bond accounts
on bonds purchased th ro u g h th e good
advice of city correspondents and
th e ir tru s t com panies.”
“W e do n ot ask for any advice as
we feel it w ould be an im position on
(T u rn to page 35, please)

W h a t can th e C o u n tr y B a n k e r d o to i m p r o v e a n d m a k e
m o r e v a lu a b le th e s e r v ic e r e n d e r e d to h i m b y his
C ity C o r r e s p o n d e n t?

The

City

Banker Answers:—

OU have read w h a t th e C ountry
B anker has to say about th e serv 
Y
ice he is receiving from his City Cor
respondent. As noted in C hart No. 6,
th e g reat m ajo rity of co u n try banks
have no com plaint to m ake about the
service th ey are receiving, and ap p ar
ently are satisfied, indicating th a t the
city b an k er is doing a p re tty good job.
H ow ever, correspondent b an k serv 
ice, as we see it, is a two-sided propo
sition. Because of th e n a tu re of such
relationship, th e co u n try b an k er is
largely on the “receiving” end, and the
city b an k er on the “giving” end, b u t
we w ondered if perh ap s th e re w ere
certain th in g s th e “receiv er” could do
th a t w ould m ake still m ore valuable to
him th e service he is already g etting

from the “g iv er”—in o ther w ords, p e r
haps a little m ore cooperation on the
p a rt of th e co u n try b ank w ould m ake
it possible for the city b an k er to do
even a b e tte r job th a n he is already
doing.
So we asked a n um ber of city b an k 
ers this question, “W hat can the
Country B an ker ilo to im prove and
m ake m ore valuable th e service now
rendered to him by h is City Corre
spondent?” In th e replies w hich fol

low we w ere g reatly impressed* as we
know every co u n try b an k er w ill be,
by th e sincere desire on th e p a rt of
th e city b an k er to be of th e g reatest
possible service to his correspondent
accounts.
N orthwestern Banker Septem ber 1940


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Federal Reserve Bank of St. Louis

16
A m ong th e le tte rs received w ere th e
following:

Letter No. 1
"Geared up and ready to serve"
“The services afforded a co u n try
b an k er by his city corresp o n d en t are
m any and v aried and are alw ays avail
able to co rrespondent banks, few of
w hom m ake full use of such facilities.
“F o r exam ple, all prin cip al b anks in
reserv e cities have in v estm en t d e p a rt
m ents th a t are m anned by technicians
and specialists in th e in v estm en t field.
If co u n try b an k ers w ould check w ith
such d ep artm en ts before pu rch asin g
securities, it w ould be advantageous
for them and w ould occasionally save
them from m aking in v estm en ts th a t
are not th e type to fit into th e ir p o rt
folios.
“P re se n t day business is tren d in g
tow ard large organizations th a t are n a 
tional in th e ir scope of operation. It
is w orthw hile for a co u n try b an k to
contact the executive officials of such
organizations and th e y can freq u en tly
obtain business from th em th ro u g h
th e ir city correspondent.
“The m a tte r of cooperating w ith a
city co rrespondent can b est be ob
tained by using the facilities w hich
are alw ays available to a co u n try
bank. In o th er w ords, th e y are geared
up and ready to serve and an y co u n try
b an k er w ho does not m ake full use of
such facilities is m issing an oppor
tu n ity to keep ab re a st of tre n d s in
business.”

Letter No. 2
"Friends get what they ask for"
“R egarding suggestions as to things
a co u n try b an k er could do to im prove
and m ake m ore valuable th e service
ren d ered by his city correspondent,
here is one, in a few words:
“Pick out th e m an in his correspond
e n t b ank w ho is th e m ost fam iliar
w ith co u n try conditions, th e n cu lti
vate him and becom e in tim ately ac
quain ted w ith him . Keep him full of
inform atio n reg ard in g good th in g s as
well as bad things. If he is a real
executive h an d lin g co u n try b an k ac
counts he w ill like it and become a
close friend. The re su lt is friends
generally get w h a t th ey ask for from
friends (plus a lot of e x tras).
“Maybe th is sounds a little a m a te u r
ish, b u t a fte r m ore th a n th irty years
of experience I know it w orks.”

Letter No. 3
"Fight Government control"
“You b rin g up a subject w hich, of
course, is n e a r an d dear to us, and
m ention th e possibility th a t th e re are
tw o sides to th e question. T his is
som etim es em phasized by th e ban k er
in th e sm all tow n, w ho th in k s th a t
Northwestern Banker Septem ber 19'W

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Federal Reserve Bank of St. Louis

conditions as w ell as the problem s of tion, new form s and in stru m en ts used
th e larg er city b an k ers are leagued in various d ep artm en ts from w hich he
ag ain st him , w hen, as a m a tte r of fact, m ight gain one or tw o ideas th a t could
we are all in th e sam e boat, so to be used in his own bank to m ake it
speak, or a t least facing th e sam e con m ore profitable or m ore efficient in its
ditions. O ftentim es, th e sm aller tow n operations. Follow ing this suggestion
b an k er feels th e city b an k er is m aking I do n o t th in k he should visit th e
considerable profit a t his expense, sam e city correspondent every y ear
w hile, in reality, th ere nev er w as a b u t ra th e r m ake th e necessary trip s
tim e w hen th e correspondent banks so as to ev entually cover m ost of his
w ere req u ired to keep so m any ac correspondent connections and in this
counting and o th er records of all kinds w ay keep ab reast of the tim es, getting
and n a tu re s to assist them in the slants from sm all, m edium and large
hand ling of th e ir own business and be size city bankers.
available as an aid to the sm all bank
“A sm all co u ntry b an k er should
as well. Take service charges, as we nev er h estitate for a m om ent to call on
know them , as an example: T here is his city correspondent for any type
no question as to th e ir soundness as of service or inform ation he m ay de
to principle, w hich m eans th ey should sire. A telephone call, letter or, if
be assessed fairly against the individ necessary, a personal v isit m ay oftual account or th e person requesting tim es prove to be inexpensive in p ro 
th e service and not generalized, as portion to the u ltim ate resu lt of the
th ey often are, w ith a set charge m a tte r involved.”
ag ain st every account, irrespective of
Letter No. 5
its value to and for the bank. We
"Welcome
opportunity to help"
don’t w an t any w eakness to develop
in our service charges w hich w ill pos
“A co u n try b an k er could im prove
sibly take aw ay this source of revenue and m ake m ore valuable the services
and, w hile it m ay m ean additional ren dered by his city correspondent if
accounting records, th ey are very use he w ould m ake full use of all of the
ful and should produce sufficient re  services th a t are available to him. A
tu rn s to pay for them selves.
p artial en u m eratio n would cover cred
“T h en too, we notice th e disposition it inform ation, foreign exchange de
of th e b an k er to w eaken his independ p artm e n t services, checking of com
en t position as a u n it going to m ake up m ercial paper, assistance in securing
th e system and, som etim es, he is the accounts locally from corporations
first to clam or for g overnm ent aid or com ing into th eir cities, governm ent
help, or to m ake use of governm ental and m unicipal bond trading, review
functions w hich can and should be of bond portfolio, and carry in g of ex
handled in the banking system , if we cess lines of credit to responsible bor
are to continue th is relationship. Of row ers. U nder a heading of special
course, if the p resen t tre n d continues services a g reat v ariety of th in g s could
and all banks become a p a rt of a be included and, for th e lack of a b et
govern m ental system , th en th e person te r nam e, could all be classified as
al aid and a tten tio n to m atters w ill be “odd jobs”. M any of these “odd jobs”
lost and, a t the sam e tim e, th ere will rep resen t a definite problem to th e
be lost one of the m ost valuable aids co u ntry b an k er but in m ost cases are
to th e sm all tow n b a n k e r’s com m u m erely ro u tin e m a tte rs to the city
nity. He w ill not be able to assist his correspondent and are usually person
good client and custom er on his own al services for officers, directors, or
m erit, b u t m u st com ply w ith some custom ers, and the city correspond
reg u lations w hich, in them selves, en t welcom es an op p o rtu n ity to be
m ight be well m eaning, b u t not appli helpful.”
cable to some circum stances, about
Letter No. 6
w hich every b an k er know s, in his own
"Pleasant, efficient service"
te rrito ry .
In o th er w ords, let us
“C ountry banks located in good
stre n g th en our own com bined posi
feeding
ag ricu ltu ral sections can co
tion, ra th e r th a n elim inate th is v alu 
able relationship by com pletely com operate very nicely w ith th e ir city
m ittin g ourselves to governm entalized correspondents today on excess lines
activities, w h atev er th ey m ight be.” of credit w here lines are too heavy
for them to handle by them selves, to
Letter No. 4
the m u tu al benefit of both the city
and co untry bank.
"Visit your city correspondent"
“Com petition is keen for in v est
“It w ould seem to me th a t a sm all
co u n try b an k er should visit one of his m ents at this tim e and often it is pos
city co rrespondents at least once a sible, th ro u g h th e city correspondent,
y e a r in th e city corresp o n d en t’s place to m ake a foothold w ith some local
of business, for th e reason th a t it custom er w ho m ay be dealing w ith a
w ould th e n be possible for him to in  com petitive bank. The co u ntry bank
v estigate clerical m ethods of opera
(T u rn to page 37, please)

17

Installment Lending by Commercial
Banks Is
H E en tran ce of com m ercial b anks
into th e field of in stallm en t len d 
ing is a co m paratively recen t de
velopm ent and one w hich is a ttra c tin g
increasin g atten tio n . B anks have tr a 
ditionally looked upon com m ercial
loans for productive purposes as th e
p a rtic u la r province of th e ir operations.
D uring th e p ast few y ears decreasing
incom e from com m ercial loans and
o th e r in v estm en ts and m o u n tin g idle
reserv es have m ade profitable opera
tions increasingly difficult. The desire
for badly needed profits has caused
m an y b an k ers eith e r to em bark on a
p ro g ram of in stallm en t lending or a t
least give th e m a tte r careful consider
ation. T he b an k s w hich have en tered
th e field have found not only th e p ro f
its th ey sought b u t o th er benefits in 
cluding th e creation of considerable
good will in th e ir respective com m uni
ties.

T

C onsum er cred it is com m only re 
garded as a recen t developm ent, a l
th o u g h it has actu ally existed since
th e first individual pu rch ased some
com m odity for his ow n use and de
ferred u n til a la te r date pa 3u n en t for
th e goods received. H ow ever, p ro v i
sion for th e sy stem atic liquidation of
consum er cred it by m eans of reg u lar
m o n th ly pay m en ts is a com paratively
new idea and has placed such credit
o perations on a sounder basis. F o r
som e tim e h an k s have extended liberal
lines of cred it to the stro n g er finance
.om panies. In o th er cases th ey have
rrie d c o lla te r^ ^ ^ g tffc |j^ * n s offered
r note
ns seice comancing
m th is
m ting
ers

PtOfítüb/6 Busi ness
By Verne T. Bonnett
Assistant C ash ie r
lowa-Des Moines National Bank
6 Trust Company
Des Moines

It has been necessary for us to file
claim s aggregating only a sm all p e r
centage of th e original face am ount of
these loans. The n um ber of claim s
filed in connection w ith loans m ade
u n d er subsequent periods for w hich
th e act has been extended is n atu rally

V E R N E T. B O N N E T T

less because these loans have not so
n early reached th e ir final m atu rity .
You can readily appreciate our sat
isfaction w ith Federal H ousing T itle I
loans w hen you consider the su b stan 
tial co ntribution th ey have m ade to
our earnings d uring the p ast five
years.
Since the F ederal H ousing A dm in
istra to r is em pow ered to issue a con
tra c t of insurance to any financial in 
stitu tio n he m ay find to be qualified
Joy experience or facilities to handle
his type of business, it is a sim ple
latter for banks to m eet th e requirenents. Title I of th e N ational Hous3 ig Act, as am ended Ju n e 3, 1939, w ill
atinue u n til Ju n e 30, 1941. T his

m eans th ere rem ains som ew hat less
th a n a year in w hich banks m ay tak e
advantage of th e op p o rtu n ity to m ake
consum er credit loans w ith th e protec
tion from loss afforded by th e 10 per
cent insurance. E v ery b an k er in te r
ested in increasing his profits and
serving his com m unity by enabling
hom e ow ners to im prove an d rep air
th e ir p ro p erty should not overlook
th is opportunity. L oans m ade on an
in stallm en t basis to finance th e im 
provem ent of hom es undoubtedly re p 
resen t consum er credit in its soundest
form. R egardless of how we m ay feel
tow ard th e practice of spending fu tu re
incom e before it is earned, w e m ust
concede th a t in loaning a m an funds,
w ith in his ability to repay, for th e p u r
pose of m aking his hom e a b e tte r place
in w hich to live, w e are not encourag
ing careless spending or im providence.
You w ill recall th a t the first era of
T itle I expired on A pril 1, 1936, and
th ere followed a period d uring w hich
F ed eral H ousing insurance on m od
ernization and equipm ent loans w as
not available. Most of the banks w hich
had gained experience in consum er
credit th ro u g h Title I form ulated th e ir
own plans for handling paper re p re 
se n tin g th e sale of stokers, oil bu rn ers,
refrig erato rs and o th er equipm ent.
T hey protected them selves from u n 
reasonable exposure to loss by replac
ing th e F ederal H ousing insurance
w ith dealer guaran ties or dealer re 
serves. N atu rally th e g u a ra n ty of a
responsible dealer or a cash reserv e
accum ulated by w ithholding a portion
of th e proceeds of each loan reduced
to a m inim um th e likelihood of loss.
Since the dealers now had an in terest
in th e perfect perform ance of th e con
tra c ts th ey proved m ore helpful in
assisting w ith delinquent accounts
th a n th ey had u n d er T itle I w hen th e
losses w ere absorbed by th e F ederal
H ousing insurance. W hen Title I
loans w ere again authorized th e y no
longer provided for th e in surance of
paper involving th e sale of equipm ent.
The m achinery w hich m any banks had
already set up for handling equipm ent
loans now proved valuable in enabling
them to continue th e ir operations in
th is field.
(T u rn to page 86, please)
Northwestern Banker Septem ber 19W


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

18

Ne w s

and

OF

BANKING

THE

V ie w s
WORLD

By Clifford De Puy
J. M cN AM EE, a ssista n t vice p re si
d e n t of th e N ational City B ank of
New York, in his recen t ad v ertisin g
copy for his in stitu tio n is em phasiz
ing th e service w hich th e N ational
City can re n d e r to cu stom ers in te r
ested in L atin A m erican trade.
In th e b a n k ’s c u rre n t ad v ertisem en t
it says:
“F o r m ore th a n 26 y ears N ational
City has been th e liason u n it betw een
th e business and b an k in g of th e Am 
ericas. F irs t A m erican n atio n al b ank
to establish an overseas b ran ch —in
Buenos A ires in 1914—N ational City
has experienced ev ery conceivable
contingency w hich tra d e w ith L atin
A m erican co u n tries has encountered.
“Our facilities have been developed
u n til today th e re are 41 N ational City
branch es in South A m erica and th e
C aribbean coun tries.”

J

gram looking to im proved and m od
ernized banking, for only as th e p ro 
fessional know ledge of th e people who
w ork in and m anage banks is enlarged,
can th e m anagem ent of banks be im 
proved.”
The b u sin ess outlook for 1941 as an 
alyzed by one advisory service w ill be
10 p er cent b e tte r n ex t year th a n in
1940. Over $5,000,000,000 is to be spent
in 1941 alone ju st for the A rm y and
Navy.
E. E. P lacek, presid en t of th e F irs t
N ational B ank of W ahoo, N ebraska,
spoke on G overnm ent com petition be
fore th e Colorado B ankers A ssociation
recen tly and said, “W ith all these gov
ern m e n tal agencies, it is necessary
th a t th e b an k er keep him self accurate
ly inform ed on all of th e ir activities
and take advantage of every oppor
tu n ity to increase his profit.”

C harles Carey, a ssista n t cashier of
th e H a rris T ru st and Savings B ank of
Chicago, in a recen t le tte r to us said:
“W hile read in g y o u r v ery in terestin g
and tim ely editorial, ‘Is F o reig n T rade
E v e ry th in g ’, I w as stru c k by th e fact
th a t even th e g re a t m ay m ake m ath e
m atical erro rs. $3,177,344,000 is m ore
th a n 2.1 p e r cent of $69,000,000,000. I
w ould have to get our credit d e p a rt
m ent to get th e correct figure b u t I
ju s t w a n t you to know th a t y o u r p u b 
lic is follow ing you and checking up
on yo u r w ritin g s.”
In rep ly to Mr. C arey we said:
“T han k s v ery m uch for y o u r letter,
and you are rig h t th a t I am off about
2.5 p er cent, because th e percentage
should be 4.6 p er cent ra th e r th a n 2.1
p er cent.
“H ow I m ade th is e rro r I do not
know , b u t th e p o in t of m y editorial
still holds good because even if you
take 70 billion dollars as our to tal n a 
tional incom e and tak e 5 p er cent of
th is you w ould get $3,500,000,000 as
rep resen tin g o u r foreign exports. The
exact figure w as $3,177,344,000 for 1939.
“W ith a t least 95 p er cent of our
business tra n sa c te d w ith ourselves and
5 p er cent w ith foreign countries, I
still say th a t we should develop our
ow n hom e econom y”.

Congress has finally passed a law
giving th e S ecu rities C om m issiou au 
th o rity to regulate in v estm en t tru st
com panies. A t th e tim e th e bill w as
signed, P resid en t R oosevelt said, “We
are cleaning house, p u ttin g our finan
cial m achinery in good order. This
pro g ram is essential, not only because
it re su lts in necessary reform , b u t for
th e m uch m ore im p o rtan t reason th a t
it w ill enable us to absorb th e shock
of an y crisis.”

R obert M. H an es, p resid en t of the
A m erican B an k ers A ssociation, be
lieves th at, “E d u catio n in th e b anking
process is fu n d am en tal to any pro-

for th e first six m onths of 1940 w as
$347,162,000 or n early $29,000,000 g re a t
er th a n last year.

Northwestern Banker Septem ber 1940

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

W en d ell L. W illkie claim s th a t 90,000 persons w ere added to th e W PA
ro ste r in one m onth recently, and
th is in spite of th e fact th at, “T here
has been a steady increase in in d u s
tria l activ ity and reem ploym ent in th is
country.
“T here is no justification for an in 
crease in W PA relief rolls as a
consequence of th is increase in ac
tiv ity and reem ploym ent. In fact, the
tre n d w as for reduction of relief rolls
u n til recently.”
Mr. W illkie believes th a t th e relief
rolls are being packed for th e purpose
of securing m ore votes in politically
doubtful states.

Iow a’s incom e from farm products

A 1940 cash incom e for th e n atio n ’s
farm ers of $8,900,000,000, including
governm ent paym ents and com m odity
loans, w as forecast by th e B ureau of
A g ricu ltu ral Econom ics at W ashing
ton.
Our con stant talk about a closer re
lation ship w ith Canada and some

ag reem en t as to how w e can p rotect
th e w estern hem isphere w as outlined
by one a u th o rity on in tern atio n al af
fairs, w ho said:
“Biggest factor b eh in d th e CanadianU. S. m ilitary talk s is th a t B ritain
w ould carry on from Canada if the
w o rst happened. T hat, of course,
w ould m ean a v irtu a l cessation of
fighting for some tim e, b u t w ould
b rin g th e B ritish fleet to th is side
of th e A tlantic, w here w ith th e U.
S. N avy, it could control this hem i
sphere, and, perhaps, p rep are to block
ade the E u ro p ean co n tin en t some day.
W ith the B ritish fleet a t h an d and tied
m ilitarily w ith th e U. S.. C anada’s
w eak defenses ag ain st a G erm an in 
vasion via Iceland and G reenland
w ould be im proved m any tim es.”
“T he safety record of life insurance
du rin g th e p ast ten y ears is w ith o u t
parallel, n o tw ith stan d in g th e w orst de
pression in m odern history. T he pol
icyholders w an t safety, and experience
dem onstrates th a t th e in stitu tio n of
life in surance has n o t failed them ,
eith er in good tim es or bad.” T his is
th e opening sentence in a book ju st
issued en titled “S tatem en t on L ife In
su ran ce”, p rep ared for filing w ith the
T em porary N ational Econom ic Com
m ittee and presen ted by 151 com pa
nies, w hich rep resen t 60.9 p er cent of
th e total assets of all life insurance
com panies in th e U nited States and
63.7 p er cent of th e total life in su r
ance enforced in such com panies.
T his statem en t is an a n sw er to the
governm ent investigation of life in 
surance a n i ^ i ^ s t h e fine reco
w hich
had in t1
co u ntry
M ildi
A ssocic

w ill
tion
21 «

e

19

M EM B E R
FEDERAL
DEPOSIT
INSURANCE
CORPORATION

National Bank
Northwestern Banker Septem ber 1940

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

20

How O u r Directors

VitQCt O u r Bank
Four Bank Officials Tell W hat Their Directors Do In the Administration of
Their Institutions, and How Their Activities Result In Profit
VERY b an k officer know s th a t th e
tim e is gone w hen being a d irec
to r of a b an k w as a m ore or less
h o n o rary position—th e tim e w hen th e
d irec to r’s nam e appeared on th e b ank
letter head, and on th e q u a rte rly s ta te 
m ents, and he atten d ed a board m eet
ing once a m onth, if he happened to
have n o th in g else to do, and gave the
cashier a frien d ly slap on th e back and
told him he w as doing a sw ell job, and
proceeded to forget th e w hole thing.
Those days, we hope, are gone forever.
A nd th ey are gone, because now direc
to rs tak e an active in te re st in b ank
operation and m anagem ent—th e y have
found it is good business and often
profitable for th em to do so.
W e have asked several b an k ers to
tell us about th e cooperation th e ir
b an k receives from its directors—w h at
th e ir d irectors are doing to help th e
bank, aside from th e u su al routine.
The follow ing is w h a t four b an k ers
w rite.

E

R. J. M cCleary, vice p resid en t and
cashier of th e Security S tate Bank,
K eokuk, Iowa, says:
“The d irectors have w orked very
closely w ith th e officers in th e past
few y ears in connection w ith th e af
fairs of th is bank. T hey have not been
so m uch in terested in gaining new ac
counts as w orking out th e problem s of
our local citizens, or being in terested
in th e progress of our local business
concerns. I know of various occasions
w here th e b an k directo rs have m ade
contact w ith reference to needs of th is
kin d and re fe rred th e p a rty to the
cashier, and in some in stances credit
w as extended w here th e p a rty w as
w o rth y of consideration, and th is p ro 
m otes new business.
“Several of our directo rs have been
influential in securing real estate loans
on local p ro p e rty up to 50 per cent of
its value on an am ortized basis over
a period of th re e to five y ears at a 5
p er cent ra te and so fa r th ese loans
have proved to be v e ry satisfacto ry .”
A. P. H echtm an, cashier of th e
F a rm e rs State B ank, of Osseo, M in
nesota, says:

Northwestern Banker Septem ber 1940

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

“In th e p ast we did not solicit loans
direct as m any banks do today. We
usu ally let th e directors do th at, so
th a t we w ere not directly u n d er obli
gations. We also did the sam e w ith
accounts. I believe th a t system is and
w as OK. Nowadays, how ever, every
th in g is on p artial paym ents and b an k 
ing has changed.
“W e try to keep up custom er rela
tions through our active officers. F o r
m erly our directors w ere chosen from
points adjacent to our tow n, so th a t he
could take care of his te rrito ry , and we
often called on him to give us credit
info rm ation on the people w hom we
did n o t know about and it w orked
v ery well.
“I believe directors should be in 
v ited m ore to group m eetings, so th a t
th e y w ill get a broader view point.”
C. W . A nderson, vice p resid en t and
cashier of th e City State Bank, M adrid,
Iowa, says:
“Our board of directors is re p re se n t
ative of different com m unity in terests
and as such co n trib u te considerably to
th e w elfare of our bank. W e have a
m a n u factu rer w ho trav els consider
ably, an a tto rn ey of note, several lead
ing m erchants, a banker, and a farm 
er. T hey all study th e ir bank, know
th e facts about it, and spread goodwill
alm ost daily in th e ir various spheres
of activity. Our farm er director is also
a stock b uyer and calls upon our
farm trad e frequently. By this token
he has an excellent op p o rtu n ity to ob
serve a fa rm e r’s prograss, check on his
needs, etc., and re p o rt these to the
board. Also the farm ers often ask him
about th e loaning policies of th e bank
and banking facilities. In m any cases
w h ere we have m ade cattle loans this
directo r has been em ployed by the
b o rro w er to buy the cattle for him.
T his a rran g em en t w orks to our m u
tu al satisfaction. In 1939 70 p er cent
of our loans w ere m ade to farm ers and
a good m any of these cam e th ro u g h
th e activity of our directors. Our di
recto rs alw ays have th e ir ears and
eyes open for possible b an k business
and are constantly recom m ending the

b ank to likely prospects; th ey are
equally zealous in th e ir attendance at
board m eetings and at th e ir reg u lar
duties as directors. The officers of
th e b ank m ake an earn est attem p t to
keep the directors w ell posted on the
affairs of th e bank th ro u g h th e m e
dium of charts, graphs, com parative
figures, etc. We h eartily believe th a t
a well inform ed d irector is one of the
indispensable v irtu es of good m anage
m en t.”
B yron Tu. M cKee, vice presid en t and
cashier of th e M uscatine B ank & T ru st
Company, M uscatine, Iowa, says:
“A com m ittee of th ree of the m em 
bers of th e board is appointed by the
presid en t to act as th e executive and
loan com m ittee, w hich m eets tw ice
w eekly except the w eek in w hich the
reg u lar board m eeting is held. A t the
executive com m ittee m eetings all ap
plications for loans of $500 and over
are presented, an d all loans m atu rin g
ten days in advance are review ed and
th e active officers are in stru cted
w h eth er or not sam e should be paid,
reduced, or renew ed. In addition to
review ing th e m atu rin g notes and ap
plications for new loans, the com 
m ittee acts upon the recom m endations
of the active officers in reg ard to in 
v estm en ts and th e in tern al operation
of th e bank.
“A t th e board m eeting each m onth
the m inutes of th e executive com m it
tee m eetings are read, and in p racti
cally every case approved. The m eet
ings of th e executive or loan com m it
tee are held reg u larly and prom ptly
a t a stated hour, w hich gives the
m em bers an op p o rtu n ity to arran g e
th e ir own personal affairs. T he p resi
dent and ch airm an of the board are
ex-officio m em bers of th e com m ittee.
“I have found th a t such a com m it
tee, w hich has functioned here for the
p ast six years, is v ery helpful to the
active m anagem ent and I am also of
the opinion th a t it p erm its the m em 
bers of th e board to become m ore
fam iliar w ith th e general operation of
th e ban k th a n th e y could otherw ise
th ro u g h ju st a board m eeting.”

21

How

Rot6S and CùStS
Affect

Safe Deposit Profits
By John J . Driscoll, J r .
Driscoll, Millet & Company
Philadelphia

VERY one fully realizes th a t if
ra te s charged for Safe D eposit
Service do n o t cover th e cost of
re n d erin g th is service, th e n d e p a rt
m ents w ill be operated a t a loss. W h at
is th e p re se n t condition in th is re 
spect in Safe D eposit D epartm en ts as
show n by our analyses of 800 banks?
V ery, v ery few d ep artm en ts operate
a t a profit, m any o perate a t a n o t v ery
serious loss and a n u m b er reflect
really serious operatin g losses. F o r
th is reason, we have freq u en tly said
th a t a Safe D eposit D ep artm en t th a t
b reak s even or b e tte r is doing an ex
ceptional job.
The factors co n trib u tin g to th is con
dition, to our m inds, are (1) The over
b uilding of d ep artm en ts m ak in g avail
able considerably m ore equipm ent and
service th a n are being utilized, and
(2) T he estab lish m en t of ra te s th a t
w ill n o t cover th e cost of th e service
rendered.
F req u en tly , w e have a b an k say to
us th a t its d e p a rtm e n t is profitable
because th e re n ta ls collected exceed
th e salaries paid in th e departm ent.
If th is is th e only elem ent of cost we
are going to consider, th e n th e g re a t
m ajo rity of d ep artm en ts w ould be
profitable. H ow ever, th e re are costs
in Safe D eposit O perations th a t m a
terially exceed th e salary cost. T hey
are th e cost of space occupied by the
d ep artm en t, th e a n n u al obsolescence
of th e v a u lt and equipm ent. I t is
tru e th a t depreciation of eq u ip m en t
and v a u lt is v ery slow b u t it is g en 
erally agreed th a t it w ill be obsolete
or n e a rly so a t th e end of ab o u t 25
years. T his m eans th e absorption of
4 p er cent of th e to tal capital ex p en 
d itu re annually. In addition, y o u r
stockholders have advanced th e capi
tal invested in th e v a u lt and equip

E

J O H N J. D R I S C O L L , JR .

m ent and, hence, it w as no longer
available for in v estm en t or o th er use
a fter being so invested. So, an addi
tional elem ent of cost is the re tu rn to
capital or a rate based on its in v est
m ent in this fixed asset. T his today
w ould be about 3 p er cent per annum .
In addition, we have all th e norm al
operating expenses for telephone, in 
surance, stationery, etc. W hen all of
these costs have been accum ulated, it
is ra re to find a d ep artm en t collecting
sufficient re n ts to absorb th is cost and
leave a profit.
It has alw ays been our position th a t
a Safe Deposit D epartm ent constitutes
a necessary p a rt of a w ell-rounded
banking service and if it can be m ade
to pay its w ay, w ith o u t earn in g any
su bstan tial profit, it has justified itself.
Now, to refer to some specific
studies of Safe Deposit operation.
F o r th e y ear of 1937, we prep ared
a surv ey of 90 com m ercial banks in
an eastern state, spread all over th e
state, and including some of th e banks
in a large city. Eighty-one of these
b anks outside th is large city reflected
the follow ing resu lts of Safe Deposit
operations for 1937:
R entals Received
$294,940.64
E xpenses ...................... 380,389.16
N et Loss

...................... $ 85,448.52

It w ould have been necessary to
increase ren tals approxim ately % to
b reak even for th is group as a whole.
F u rth e r analysis of these figures
show s the following:
23 dep artm en ts had a
profit of
$ 19,861.49
58 dep artm en ts had a
loss o f ........................
105,310.01
L eaving a LOSS of

.

$ 85,448.52

Of th e dep artm en ts reflecting a
profit, 6 show ed a profit of less th an
$100, 13 show ed a profit of m ore th a n
$100, b u t less th a n $1,000, and only
one d ep artm en t show ed w h at could
be term ed a w orth w hile profit.
A bout 85 p er cent of th e dep artm en ts
show ing a profit w ere sm all d ep art
m ents.
Of the 58 dep artm en ts operating a t
a loss, 26 of these show ed a loss in
excess of $1,000 and 16 a loss of m ore
th a n $3,000.
In an o th er instance, our figures
show th e five dep artm en ts in large
banks in a big city reflected a loss
of over $200,000 for one year.
In a survey of 12 com m ercial banks
in an o th er state for th e year 1938, th e
follow ing resu lts w ere show n for Safe
Deposit operations:
R entals Received
$11,710.68
E x p e n s e s ........................ 17,522.45
N et L o s s ....................

$ 5,811.77

In th is instance it w ould be neces
sary to increase ren tals approxim ately
50 per cent to b reak even. Six of
these banks h ad a m inim um ren tal
of $2.50 and six of $3. A fu rth e r
refinem ent of these figures show s th a t
4 dep artm en ts had a
profit of
8 dep artm en ts had a
loss of .......................
- L eaving a n et loss of

$ 835.32
6,647.09
$5,811.77

These tw elve dep artm en ts had p ro 
vided a total of 5,780 boxes for th e
use of th e ir custom ers, of w hich 3,242
or 56 p er cent, w ere rented. This is
a reasonable average indication of the
(T urn to page 92, please)
Northwestern Banker Septem ber Î9W


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

22

WM.

J.

GOODW IN

C h airm an of the Bo ard and P resid en t

E.

F.

BUCKLEY

V ice-P resid en t

FRANK

R.

WARDEN

V ice-P resid en t

O E IT IitL H T IÖ IA L
FIFTH A V EN U E B E T W E E N
EMMETT

E.

JOHNS

A s s i. V ice-P resid en t

FRED
A s s t.

H.

Q U I N ER

V ice-P resid en t

JOHN

Northwestern Banker Septem ber 1940

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

W.

HAWK

A s s t. V ice-P resid en t

IRWIN

ABRAM

A ssista n t C a sh ie r

G.

W.

BARTMESS,

A s sista n t C a sh ie r

JR.

23

Friendly H ank. . .
m abe out* banbina Lome i^oue
54tL^yLh'n n u a i

tLe

N-on uen LEHMAN
PLUMMER
Vice-President

^y4 ó i od a tio n .

J.

MEMBER

FEDERAL

BANK

DEPOSIT

0

l

INSURANCE

CORPORATION

R. C A P P S
C os hier

TRUST I’ll.

W A L N U T A N D LOCUST

•

» E S M O IN E S
I. L.. WRIGHT
Trust O f fic e r

J.
E. Q U l N t R
A s sista n t C a sh ie r

H.

C.

WINDER

A s sista n t C a sh ie r

D.

R.

W ITHINGTO N

A s sista n t C a sh ie r

GEO.

L.

NISSLY

A sst. T ru st O f f ic e r

Northwestern Banker September 19^0

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

24

Bank M a n a g e m en t —
Customer Relations —
Loans — New Business

digest
BUSINESS C Y C L E S
S peaking before th e G raduate School
of B anking, Col. L eonard P. Ayres,
vice p resid en t of th e Cleveland T ru st
Company, said in p art:
“W e have been alte rn a te ly speeding
up and slow ing dow n our production
of durable goods for m an y decades,
and so have all th e o th er in d u stria l n a 
tions, and it is th a t un ev en production
w hich has caused th e w avelike expan
sions and co n tractions of business ac
tiv ity w hich we know as business
cycles. T hese a lte rn a te periods of ex
pansion and contraction in th e produc
tion of durable goods re su lt from de
cisive changes in th e am ounts of
m oney being sp en t for such goods, and
those changes in th e volum es of p u r
chasing have in norm al tim es largely
resu lted from decisions m ade by b u si
ness enterp rises. In recen t years, and
a t presen t, th e changes largely re su lt
from v ariatio n s in gov ern m en t ex
penditures.
“B usiness cycles re su lt from w ave
like expansions and co n tractions in
the production of durable goods.
Changes in th e am ounts of m oney
sp en t by b u siness en te rp rise s for th e
purch ase of d urable goods have re 
sulted from changes in th e volum e of
sales of new secu rities w hich have
decreased d u rin g bear m ark ets for
bonds and stocks, and increased d u r
ing bull m arkets. W ith alm ost com 
plete re g u la rity d u rin g th e p ast 80
y ears th e d o w n tu rn s of th e secu rity
prices at th e tops of bull m arkets, and
th e ir u p tu rn s from th e bottom s of bear
m arkets, have closely followed u p tu rn s
and d o w n tu rn s in th e levels of sh o rt
term in te re st rates.
“In bull m ark ets for securities th e
advances in short-term in te re st rates
have b ro u g h t about d o w n tu rn s in
bond prices w hich have norm ally been
sh o rtly followed by d o w n tu rn s in stock
prices. T hese declines in secu rity
prices have created u n favorable m a r
k et conditions for floating new securi
ties, and so have resu lted in dow n
tu rn s in th e volum es of new issues.
Northwestern Banker Septem ber 1940

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Federal Reserve Bank of St. Louis

W hen th e volum e of new issues has
tu rn e d dow nw ard th e inflow of new
funds into productive en terp rise has
decreased, and a business decline has
started. The process at th e bottom of
th e business cycle has been a sim ilar
one, b u t w ith all th e tu rn in g m ove
m ents reversed.
“The long w avelike up w ard fluctua
tions and dow nw ard fluctuations in the
levels of short-term in te re st rates have
been m ainly caused by th e operation of
our banking law s and regulations
w hich have controlled th e expansions
a n d contractions of b a n k credit
th ro u g h causing a ltern ate increases
and decreases in b an k reserves. T his
m eans th a t in th e p ast our business
cycles have been caused by the opera
tions of our b anking laws and reg u la
tions, our business procedures, and the
processes of our secu rity m ark ets.”

W IN D O W DISPLAYS
B anks w hich are not m aking use
of th e ir w indow s for display purposes
are not tak in g advantage of th e pos
sibilities th is type of publicity offers.
W alter D istelhorst, ad v ertisin g m an 
ager of th e F irs t N ational B ank of
Louisville, K entucky, in a recen t is
sue of B ankers M o nthly offers several
suggestions. W hile w h at he had done
applies to Louisville only, even th e
sm aller tow ns can arran g e attractiv e
displays based on com m unity events
or in dustries.
T aking advantage of th e fact th a t
m ost people have a hobby of some
kind or other, Mr. D istelhorst sug
gests th e following:
1. P hotographs from the am ateu r
pho to graphers club.
2. C ourier and Ives p rin ts re p re se n t
ing th e life of a fireman.
3. S ouvenir spoons from all p a rts of
th e world.
4. W ar relics picked up in th e b a t
tlefields of France.
5. Filipino n ative w eapons.
6. Dolls from all p a rts of th e world.
7. Tools and m aterials for m aking
w ooden shoes.
8. D ressed dolls illu stra tin g th e de
velopm ent of th e n u rse s’ uniform .
O ther types of displays fit in ju st as
well, and here are fu rth e r suggestions:
1. H eat resistin g linings for glass
furnaces.
2. Cups and trophies for a local k en 
nel show.

3. M ounted birds in connection w ith
a bird lovers’ convention.
4. New products m ade from milk.
5. Loving cups w on by the b an k ’s
own team s.
6. A collection of h ats from m any
parts of the w orld to advertise trav el
service.
7. A letterp ress exhibit com m em 
o ratin g 300 years of printing.
8. Crime detecting equipm ent from
the police departm ent.

BANK M O N EY O RD ERS
I. I. Sperling, w ritin g in B anking,
says th ere is profit in issuing b ank
m oney orders. H ere is w h at he says:
“Is th ere m oney to be m ade in bank
m oney orders? How do th ey differ
from official checks and w hy do com
m ercial banks w ith checking account
services offer them in addition? W ill
the use of m oney orders ten d to reduce
the fees from o rd in ary and special
checking accounts?
“These are some of th e questions the
careful b an k er w ill w an t to answ er to
his en tire satisfaction as he studies the
m any new ly-devised or im proved serv 
ices th a t are offered th e public in an
effort to provide additional facilities
and income.
“One b ank introduced th e b an k
m oney order at about one-third of its
branch banks as a test cam paign. A t
the end of tw o m onths, it found th a t
th ere w as no appreciable drop-off in
th e n um ber of m oney o rders issued in
the second m onth of th e test, although
m anagers had said th a t th e y did n o t
expect rep eat business because of the
increased cost as com pared w ith cost
of official checks.
“A second significant fact of the te s t
w as th a t th e b ran ch offices averaged
considerably m ore incom e from the
m oney orders in co n trast to a previous
‘loss op eratio n ’ on official checks.
“As a resu lt of th e test, b ank m oney
orders w ill now be offered in all of th e
com pany’s branches and additional an 
nu al incom e of m ore th a n $20,000 is
anticipated at th e branches alone.
“A t first in th e te st offices, the tellers
w ere fearful th a t th e m oney o rd e r
w ould be in com petition w ith th e
b an k ’s o ther checking account services
and w ith th e facilities of th e post office
and com peting financial in stitu tio n s.
At th e end of th e test, how ever, no loss
of business w as reported.

25

Director Cooperation —
Special Services —
Personnel Problems
“T here are th re e g eneral classes of
users of checking services.
“The first group (by far in th e m a
jo rity ), req u ires a re g u la r checking ac
co u n t for th e p ay m en t of business and
personal bills and is w illing to m ain 
tain an adequate balance or pay th e
necessary service charges. T he second
group has only a relativ ely few p e r
sonal bills to pay and these people
seem to find th e q u a rte rly statem en t, 5
cents-per-check plan satisfactory.
“The th ird group includes those who
have in fre q u e n t need for paying bills
by some form of check. T his is th e
group th a t finds th e b an k m oney order
w ell suited to its needs.
“The te st offices found th a t custom 
ers w ere in terested in such featu res as
th e receip t stub and th e fact th a t the
nam e of th e re m itte r ap p ears on the
face of th e m oney order. One office
rep o rted it w as less tro u b le to sell
m oney orders a t th e p re se n t scale th a n
it had been to sell official checks at a
stra ig h t 10 cent charge. The ad v an 
tages of th e receipt stub and nam e of
th e re m itte r are definite benefits in
com parison w ith official checks. In
som e in stan ces it also leads to th e es
tab lish m en t of a 5 cent checking ac
count.
“The schedule of b an k m oney order
fees is roug h ly com parable to those es
tablished a fte r m any years of ex p eri
ence in th e p ostal system .
T he schedule in th is in stance is as
follows:
“T en dollars or less, 10 cents; $10.01
to $50, 15 cents; $50.01 to $100, 20 cents;
$100.01 to $250, 25 cents; $250.01 to $500,
30 cents.”

H U M A N N ATURE
Speaking before a county b an k ers
association m eeting in New Y ork State,
M ilton W right, of th e custom er re la 
tions d ep artm en t of th e A. B. A., said
in p a rt as follows:
“B ankers certain ly have an oppor
tu n ity to learn about h u m an n atu re,
and some of th em use th is know ledge
to good advantage in g ettin g prospects
in terested in ta k in g on additional b ank
services.
“Up in New E n g lan d th e re is a b an k
w hich has been v ery successful for
some tim e p ast in g ettin g itself nam ed
as executor of wills. Most of th is b u si
ness is obtained by th e cashier, and
th is is one of his stu n ts.

“L ying on his desk is a v ery a ttra c 
tive little booklet, bound in leather,
bearing th e title, F acts A bout Your
Will. Also on th e cover, stam ped in
gold, is th e cash ier’s nam e. T his book
let is left in a spot w here any visitor
sittin g beside th e desk cannot fail to
see it. The cashier, in th e course of
th e conversation w ith some one who
he th in k s m ight be a prospect, alw ays
m akes it a point to have to atten d to
som ething or other, leaving th e v isitor
alone for a m om ent. Inevitably, the
visitor picks up th e attractive-looking
booklet.
“W hen th e cashier retu rn s, the book
let is in th e v isito r’s hands. T hen the
cashier says:
“T h a t’s a m ighty useful little book
there. It tells a m an every th in g he
ought to know about wills, and, be
lieve me, th ere is plen ty of inform a
tio n th a t is necessary. T here are a
lot of im p o rtan t little th in g s th a t m ost
of us don’t know about.”
“V ery in terestin g ,” says th e visitor.
“I’d like to read it.”
“I w ish I could give it to you,” says
th e cashier, “b u t I need it myself. I
use it every day.”
“W ell, I don’t w an t to take it if you
need it,” says th e custom er.
“I have some influence w ith th e
people w ho issue th is booklet. I have
done them some favors and th ey ought
to be w illing to do some for me. I ’m
going to ask them if th ey h av en ’t an
ex tra copy th ey can spare for you.”
In a few days th e cashier receives a
duplicate of th is “private, perso n al”
booklet on wills, stam ped w ith th e
v isito r’s nam e in gold on the leath er
cover. He presen ts it to th e visitor.
The booklet is th e re a fter cherished as
som ething ex tra special, and it has
been a big factor in building up the
tru s t business in th a t p articu lar bank.
“In th e course of our A. B. A. study
of business-getting m ethods for banks,
we ra n into nearly all th e angles of
salesm anship. It is not surprising,
therefore, th a t we came across the
episode of th e trav elin g b an k er and
th e fa rm e r’s daughter. This traveling
b an k er is the assistan t cashier in the
cen ter of th e farm ing co u n try in
n o rth e rn New Y ork state. He is a
key banker, and has m ade a rep u tatio n
as a business getter.
“This young m an is out of th e b ank

digest
su b stan tially all of th e tim e, digging
up business. He is becom ing m ore
w idely know n all th e tim e, and, ac
cording to w h at th ey tell me, th is is
how he accom plishes it. He w ill be
d riving along a co untry road on b u si
ness for th e bank, and w ill notice
some h en houses. He w ill tu rn in,
drive up to the farm house, and speak
to the fa rm e r’s daughter. His excuse
is th a t he w an ts to buy a dozen eggs.
“Now it takes a little tim e to g ath er
up a dozen eggs, find som ething to
p u t th em in, and m ake change. All
of th is tim e provides th e trav elin g
b an k er w ith an opportunity. He has
a w in n in g m anner, and th e fa rm e r’s
d au g h ter proceeds to tell him all she
knows. P resently, th e farm er, him 
self, appears to find out w h at th is
good-looking young m an is doing
there. A nd so th e trav elin g banker
engages him in conversation. He finds
out how m any cows, pigs, and chickens
he has, how m uch m oney he owes on
his farm equipm ent, w h at th e size
of th e m ortgage on his p ro p erty is,
w h at his incom e th e last year was,
and w h at he has p lanted for the next
season.
“He doesn’t have to say good-bye
to th e fa rm e r’s daughter, because it
has daw ned upon h e r th a t th e h an d 
some b an k er w asn ’t in terested in her,
b u t in business.
“This young b anker has told me th a t
often he has arriv ed hom e at th e close
of a day w ith a dozen dozen eggs,
bought at a dozen different farm s for
purposes of g etting th e farm ers in 
terested in using his bank.
“T his fellow gets business because
he is alw ays looking for business. No
m a tte r w here he is or w h at th e cir
cum stances are, he m akes it a point to
sales-slant his conversation. He will
be driving along a road, and see a
m an com ing in the o ther direction
w ith a load of hay. He w ill stop and
ask directions, follow them up by ask 
ing the price of hay, th e n ask the profit
on it, and as likely as not, he w ill have
found an o th er custom er for his b an k .”
Northwestern Banker Septem ber 19'W


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

Wrongful

DìshOftOt of a

Check No Cause for Damages
As pay m en t for a fu r coat, H are gave
S terling his check for $500. The check
was d raw n on a M ississippi b an k and
the en tire tran sactio n occurred in th a t
state. W hen S terling p resen ted th e
check to th e b an k for paym ent, th e
bank w rongfully refu sed to honor th e
in stru m en t, although H are h ad suffi
cient funds on deposit to cover it. The
refu sal to pay th e check w as sim ply
an oversight, and no m alice on the
p a rt of th e b a n k ’s rep resen tativ es ex
isted w ith reference thereto. H are
sued the bank for dam ages, claim ing
he w as em barrassed and hum iliated
by its action. He did not a tte m p t to
prove any o th er dam ages. Could he
recover?
No. The w ron gfu l dishonor of a
check by a bank w ill not ju stify the
recovery of dam ages by an injured
depositor for h is em barrassm ent and
h um iliation u n less the dishonor w as
m alicious, in w hich even t p un itive
dam ages are w arranted. It has been
so held in M ississippi, and in K entucky
and Texas. N ew York, how ever, has
held to the contrary.

Able, a N ebraska b anker, w as ap
pointed a d m in istra to r of th e N ebraska
assets of th e estate of W hifler, w ho
died in and a resid en t of G erm any.
One of th e assets of th e estate con
sisted of a prom issory note, secured
by a m ortgage w hich w as in default.
Able sued as a d m in istra to r to foreclose
th e m ortgage. At th e tria l he w as
unable to produce th e p rom issory note
in court. Should he th erefo re lose
the foreclosure suit?
No. In an action for the foreclosure
of a real estate m ortgage giv en to se
cure the p aym ent of a prom issory note,
the p ossession and production of the
note for can cellation is not in all cases
an absolute requ irem en t as a b asis for
a decree. It is, h ow ever, n ecessary
th at the plaintiff prove ow nersh ip of
the debt represen ted by the note and
that it has not been sold, assigned, or
o th erw ise disposed of. B y su ch proof,
A ble m ight succeed in the foreclosure
case.

A N o rth D akota b a n k e r m ade a se
ries of purch ases and of sales of “w h eat
Northwestern Banker Septem ber 1940

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

These and Other Timely Legal
Questions Are Answered

By the
LEGAL DEPARTMENT

fu tu re s” there. H is dealings w ere w ith
a g rain elevator and he ended owing
th em several tho u san d dollars. The
g rain concern sued to recover. As a
defense he claim ed th e tran sactio n s
w ere w agering contracts w hich w ere
void because he never intended to take
delivery of th e g rain bought by him.
The g rain elevator rep resen tativ es
proved to th e satisfaction of th e ju ry ,
how ever, th a t th e ir inten tio n s in th is
reg ard did n ot coincide w ith th a t of
th e defendant. Should th e defense
prevail?
No. The test of w h eth er contracts
for the sale of com m odities for future
d elivery are illegal as w agerin g con
tracts is not the in ten tio n of one party,
but that of both. Since the parties
here did not both intend th at there
should be no d elivery, the d efen se in 
terposed in the case w ill not he per
m itted to prevail.

Blackwell owed a South D akota
b an k certain m onies. He ow ned a
farm in th a t state w hich w as his hom e
stead. T he farm w as conveyed by
him , w ith o u t consideration, to Jo h n 
ston. The bank sought to have the
conveyance set aside as a frau d on
th e creditors, of w hich th ere w ere sev
eral, of Blackwell. Could it prevail?
No. A h om estead is exem p t from
cred itors’ claim s. B ecau se of this, a
con veyan ce of it does n ot con stitu te a
fraud on creditors w ho h ave no rights
in such property and w ho, by reason
thereof, are not affected by its tran s
fer w ith or w ith o u t consideration, and
w ith or w ith o u t a frau du len t in tent.

U nder Iow a law actions to recover
on w ritte n contracts m u st be begun in
10 years. B uchley executed in favor
of W allace a prom issory note payable
on dem and in th a t state in 1925. W al

lace m ade no dem and on B uchley for
th e p aym ent of th e note u n til 1937.
B uchley refused to pay and W allace
sued. Can he recover?
No. A n action on a dem and note is
barred by lim ita tio n s in Iow a if it is
not brought w ith in ten years from the
date thereof. A dem and note is due
on the date it w as sign ed for the pur
p oses of lim itation.

A M innesota b an k er ow ned a tra c t
of land on a lake in th a t state. To
d rain th e land, he established a ditch
which, in addition to effecting the
drainage, caused th e w ater level of the
lake to be low ered substantially. F o r
several y ears afte r th e establishm ent
of th e ditch, n o thing w as done about
th e reduced w ater level. The state
au thorities, how ever, afte r long delay,
b ro u g h t proceedings to req u ire the
b an k er to do th e construction w ork re 
quired to resto re it. W as such delay
fatal to th e s ta te ’s case?
No. A long delay occurring b etw een
th e estab lish m en t of a ditch and the
in stitu tio n of p roceedings to restore a
lake le v el affected thereby does not
lim it the righ t of a state to require the
restoration of a lake le v el w here there
is no statu tory p rovision creatin g a
tim e lim itation, as is the case in M inne
sota.

Carroll, a benevolent banker, con
tracted to pay for the m aintenance of
seven children in an orphanage for five
years, and m ade th e paym ents as
agreed. D uring th e years such pay
m ents w ere m ade he sought to secure,
in his incom e ta x re tu rn s, the deduc
tions p erm itted by th e F ederal incom e
tax law for “each person dependent
upon and receiving his chief su p p o rt
from th e tax p ay er.” Is he entitled to
such deductions?
No. One w h o has contracted to pay
for the m ainten an ce of a stated n um 
ber of children at an orphanage cannot
base thereon a claim to the deduction
perm itted by the F ederal incom e tax
law for dependents. To con stitu te one
a d ependent w ith in the p rovisions of
su ch law there m u st be som e bond be-

(T u rn to page 94, please)

27

^ The A m erican M utual Life Insurance Com pany believes in the
great M iddle West, and we are concentrating our m ajor o p era
tions in this—your section of our country.
^ We are contributing to its developm ent by our investm ent p ro 
gram, by our safeguarding of the future of your citizens and
th eir families, and by the wide distribution of our policy pay
m ents to your people.
^ B uilt on a foundation of m ore than
$ 3 0 ,0 0 0 ,0 0 0 of excellent assets
$ 9 0 ,0 0 0 ,0 0 0 o f life insurance in force
$ 8 0 ,0 0 0 ,0 0 0 paid to policyh olders and
beneficiaries since organization, the Com pany is proud to be so
vital a factor in the financial and social developm ent of your
territory.

insuRsnce compsny
E stablished in 1897

Des moines, town
W ard F. Sena, P resident

Northwestern Banker Septem ber 1940

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

28

*

No. V I of a Series

vUe Come Jlesie A/oi to- Pnaide

...but to Appraise the Investment Banker
The purpose of this advertisem ent is to

He must be an individual of keen percep

discuss dispassionately the qualities neces

tion.

sary to succeed as an Investm ent B anker—

ing, and re-viewing, all considerations—

to appraise—ra th e r than praise.

retaining them in th eir true perspective.

He m ust possess the faculty of view

And finally, he m ust be able to pass sea
We would, indeed, be remiss if we did not
soned judgm ent.

To these acquired quali

adm it th at there have been all kinds of
ties are added scrupulous honesty and in
Investm ent Bankers.

However, conditions
nate integrity.

existing during the past several years have
definitely weeded out the less efficient and
incapable.

No small p art of A m erica’s present-day effi
ciency of industry — of A m erica’s high

Recognizing this tru th , we have only to

standard of living—can be attrib u ted to the

concern ourselves w ith the attributes of the

intelligence, capacity and foresight of the

successful, respected Investm ent Banker.

Investm ent Banker.

Iowa Investment B a n k e r s Association
Northwestern Banker Septem ber 19^0

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

29

The M onths Market Maneuvers
On the m orning
of T hursday, A u 
g u st 29th, as w e
w rite this, the m ar
k ets are quiet—but
firm. R eports of air
raids over London
and B e r l i n con
tinue, and w ar is
still the m ost po
JA M E S H. C LAR K E
ten t sin gle force affe c tin g se c u r ity prices — b ut u n til
eith er G erm any or E n glan d is able to
report definite su ccess n ot m uch should
happen m ark etw ise. D om estic con sid 
erations—b etter earnings, larger or
ders and the lik e—are pretty w ell d is
regarded in the prices of secu rities so
lon g as the u n certain ties of w ar pre
vail.
T h e lo n g e r B r ita in h o ld s o u t, th e
m ore o p tim ism a p p ea rs in th e sto c k
m a rk et. T h e r e p o r ts a s to w h e n bad
Aveather w ill co m e to aid E n g la n d ’s d e
fe n s e , liOAvever, are to o c o n flic tin g to
he r e lie d u p o n — b u t it m a y e a sily b e
O ctob er b efo re G erm a n y is fo rced to
ab an d o n m a ss a ir a tta c k s. U n d e r th e s e
c o n d itio n s it m a y v e r y a a c II be th a t
p rice tr e n d s w ill be in c o n c lu s iv e — b u t
a fte r a y e a r o f it Ave sh o u ld be fa ir ly
Avell a ccu sto m ed to it n o w .

R eading the daily reports on the
stock m a rk e t in A u g u st was a v e ry
dull business. Volum e of trading was
low, n et price changes over the m o n th
w ere sm all and item s of in terest al
m o st too fe w to m ention. On the nega
tive side— the N ew Y o rk S tock E x 
change on M onday the 19th, traded
only 129,650 shares— the sm allest tu rn 
over fo r any fu ll session of trading
since A u g u st 7,1916. This, by the w ay,
is m u ch w orse than the 195,300 shares
traded one day in J u ly and m entioned
in our last m o n th ’s article. W h e n you
recognize th a t the brokers of the coun
try need days in w h ich at least one
m illion shares are traded in order to
break even, it is easy to see w h y sales
of N ew Y o rk Stock E xchange seats are
at successively low er levels.
As is to be expected in periods of
m odest volum e, price changes d uring
th e m o n th w ere u n im p o rtan t. As of
th e close of business Ju ly 31st, th e
Dow-Jones in d u stria l average figure
w as 126.14—y esterd ay afternoon (A u
g u st 28th) at th e close it w as 126.87—
a little b e tte r th a n a half point im 
pro v em en t in about a m o n th of tra d 
ing. To date th e re have been tw entyfo u r days of m a rk e t activ ity in A ugust

Prepared for

The Northwestern Banker

By Jam es H . C larke
Assistant Vice President
American National Bank & Trust Co. .
Chic ago

—gains w ere rep orted fifteen tim es
and th ere w ere nine days of losses.
W hile these figures indicate a som e
w h at b e tte r m arket, it is of in te re st—
alth ough of no special significance—to
observe th a t on A ugust 13th th ere w as
a b reak of 4.28 points. T his w as the
larg est m ark et sw ing of any day and
w as accom panied by th e g reatest vol
um e—640,000 shares. As you probably
have already figured out—th is w as the
first day ' on w hich London w as
bombed.
D e sp ite firm p r ic e s in th e h ig h gra d e
b o n d m a r k e t d u r in g th e m o n th , th e
neAAT is s u e s w h ic h w e r e offered m e t
w ith b u t m o d era te su c c e s s. E v e n in a
m a r k e t h u n g r y fo r b o n d s, a p p a r e n tly
b u y e r s are s t ill in s is t in g th a t b o n d s be
p riced r ig h t. T h ere Avere th r e e is s u e s
o f im p o r ta n c e in A u g u st — e x c lu d in g
ra ilro a d e q u ip m e n t tr u s t c e r tific a te s.
T h e y Avere — $22,150,000 C arolina,
C lin clifield a n d O hio 1st 4’s o f 1905 at
10214; $6,000,000 o f N o r th w e s te r n P u b 
lic S e r v ic e C o m p a n y 1st 4’s o f 1970 at
10214 and $25,000,000 o f C e la n ese Cor
p o ra tio n o f A m e r ic a n deb. 3’s o f 1955
Avhich ca m e o u t at 98. A s Ave w r ite th is,
th e r e are s till b o n d s a ro u n d at th e o f
fe r in g p r ic e s an d in o n e or tw o c a se s
th e r e p ro b a b ly Avill b e so m e c o n c e s
sio n s. in sh o r t, A u g u st d id n o t prov id e an e n th u s ia s tic m a r k e t fo r I o a v
co u p o n , lo n g term b o n d s.

There are a n u m b er of prospective
issues on the fire. San A ntonio Public
Service plans $16,300,000 of first 3’s of
1970, W estern A uto S u pply C om pany
has registered $6,000,000 of debentures
due in 1955, w hile Colum bus and S o u th 
ern Ohio E lectric w ill offer $29,000,000
of first 3 VPs of 1970. The $32,000,000
deal of the International Paper Com
pany is still held up. A s is to be ex
pected, a n u m b er of other companies
are planning to take advantage of
these good m a rkets to do som e financ
ing. S outhern California E dison is
said to be planning to refu n d the $108,000,000 of 314’s of 1960 w hich are out
standing— and Dow Chemical is consid

ering a $25,000,000 bit of financing in 
cluding $15,000,000 of ten year deben
tures and the balance in stock. Ioiva
E lectric L ig h t and Poiver proposes to
offer $12,600,000 in a 3V2 per cent m o rt
gage bond plus $1,980,000 of general
m ortgage serial notes.
Under p resent conditions, Septem ber
should see considerable a ctivity in
n ew issues of bonds— and perhaps the
com ing offerings w ill be m ore favor
ably priced. I n passing it m ay be
m entioned that u n d erw riters believe
th a t the recent am en d m en t to the Se
curities A ct of 1933 w hich p erm its the
S. E. C. to ease up in the tw e n ty day
registration period w ill be helpful in
n ew financing.
T here w ere b u t m inor changes in
quotations on U nited States G overn
m ent bonds du rin g th e m onth. The
long 2% ’s of 1965/60 w ere quoted
around 106.15 on th e bid side on A u
gust 1st-—yesterd ay th e bid w as 106.10.
The new 2!4’s of 1956/54 w ere 102.20
bid early in the m onth and are about
102.18 today. The G overnm ent did no
new financing in A ugust except in the
w ay of T reasu ry Bills. It is expected
th a t th ere w ill be some financing in
Septem ber, how ever, probably by both
the T reasu ry and th e RFC. It is sim 
ple to see th a t appropriations w hich
we have m ade and are m aking for n a
tional defense w ill req u ire m uch new
financing—b u t it is also quite likely
th a t the bulk of th a t w ill come in 1941
and thereafter.
G en era l b u sin e ss w a s good in A u 
g u st, an d , b a r r in g a c o lla p se o f E n g 
la n d , sh o u ld c o n tin u e at sa tisfa c to r y
leAre ls OArer th e im m e d ia te fu tu r e . F o r
in s ta n c e , s t e e l a ctiA ity is a ro u n d 91
p er c e n t of c a p a c ity com p ared w ith
87.7 in th e b e st m o n th o f th e 1937 boom
— a n d m a n u fa c tu r e r s o f ste e l e x p e c t
e v e n g r e a te r a c tiv ity a s th e d e la y s in
o u r d e fe n s e sc h e d u le are elim in a te d .
E x p o r t d em a n d — d ir ect an d in d ir e c t—
a c c o u n ts noAAr fo r ab ou t tAventy p o in ts
o f o u r p r o d u c tio n — a n y c h a n g e fo r th e
w o r se ab road w o u ld h a v e sh a rp an d
sevrere r e p e r c u ss io n s h ere.

The autom obile in du stry is m aking
good progress in introducing the 1941
m odels, electric pow er production con
tin u es at record levels. Standard Sta
tistics has estim ated that fixed charges
of Class I railroads as a w hole w ill be
earned 1.35 tim es as again st 1.19 tim es
last year. Increased a ctiv ity in num er
ous other in du stries has resu lted in
im provem en ts in the u nem p loym en t
situation.

Northwestern Banker Septem ber 19J0

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

Bank Women Convene
The 18th A nnual C onvention of the
A ssociation of B ank W om en will be
held in A tlantic City, N. J., Septem ber
19th to 21st inclusive, announced Miss
M ildred R oberts, p resid en t of th e As
sociation and assistan t cashier, Citi
zens N ational T ru st & Savings Bank,
Los Angeles, California. H eadquarters
w ill be at th e H otel Dennis.
In discussing th e convention, Miss
R oberts stated: “N ever in the h istory
of our organization has g reater sig
nificance been attach ed to our m em 
b ers’ attendance. Chaotice conditions
in E urope are reflected in the econom 
ic reactions of th e w hole w orld. W om 
en in our profession are faced w ith
the necessity of being b etter equipped
to offer intellig en t counsel and tim ely
advice to our b a n k s’ custom ers, to help
them m eet u n u su al situations.
“This y ear th e A ssociation is serv
ing, in th e tru e st sense of the w ord, its
basic purpose. It w as organized in
1921 by a sm all group of bank w om en
in New York. Its p rim ary object is to
b ring to g eth er w om en in executive po
sitions in banking in stitu tio n s th ro u g h 
out the co untry for m utual exchange
of ideas and experience in order th a t
practical benefits be derived th e re 
from. It fu rth erm o re prom otes the in 
terests of all w om en in this profes
sion and upholds th e ir dignity and in 
tegrity.
“Those m em bers w ho have atte n d 
ed our conventions in th e p ast,” she
continued, “have found them both
stim u latin g and inspiring. W e are con
fident th a t all of us w ho m eet in Sep
tem ber w ith our associates from fortytw o states of th e Union, for a fran k
discussion of com m on problem s and
in terests, w ill derive benefits g reater
th a n ever before to aid us in con
trib u tin g constructive service to our
banks, to our custom ers and to our
respective com m unities.”
Miss R oberts announced fu rth e r
th a t th e follow ing chairm en of com
m ittees for the convention had been
approved by th e board of directors of
th e Association: G eneral Convention
C hairm an—Miss K ath erin e Moore, N a
tional N ew ark & E ssex B anking Co.,
N ew ark, N. J.; H ead q u arters and Res
erv atio n s—Miss Rebecca R. H aines,
P ro v id en t T ru st Co., Philadelphia, Pa.;
P rin tin g and Badges—Miss M arjorie
Allison, L ehigh V alley T ru st Co., Al
lentow n, Pa.; P ro g ram —Miss A nne
H oustoun Sadler, B ank of the M an
h a tta n Co., New Y ork City; P ublicity—
Co-Chairmen — Mrs. M ary B erkeley
F inke, M orris P lan B ank of New York
and Miss H ilda M. Hoffman, Bow ery
Savings Bank, New Y ork City; Reg
istratio n s—Mrs. E lizabeth Van Sciver,

Sound
Investment
Service
T o Iow a banks, and Iow a In d u s
try , the nam e P O L K -P E T E R S O N
stan d s for the m ost constructive and
tim e-tested type of m odern in v est
m ent service.
T o our clients interested in the
buying and selling of bonds, we
offer a nationw ide service, an an a
lytical and research departm ent, and
a netw ork of Iow a branch offices
th a t are of obvious advantage to all
our custom ers, both large and small.
And, as underw riters, this house has
played an im p o rtan t p art in the p e r
m anent financing of m any leading
industries, both in Iow a and the
nation.
In v estig ate the m odern invest
m ent facilities of P olk-P eterson
C orporation.
W r i t e fo r o u r C u r ren t L is t of
F H A In s u r e d M o rtg a g es

¡a1

M D aw .

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

OTTUMWA

CEDAR RAPIDS

31
F irs t N ational B ank of P rinceton,
P rinceton, N. J.; E n te rta in m e n t and
H osp itality —Mrs. M ary G. Roebling,
T ren to n T ru st Co., T renton, N. J.;
N om inating—Miss G race S. Stoerm er,
B ank of A m erica, N.T. & S.A., Los
Angeles, C alifornia.

James F. Twohy
Entertained
A luncheon w as held at th e Des
M oines Club in Des Moines last m onth,
h onoring Jam es F. Twohy, governor
of th e F ederal Home Loan Bank,
W ashington, D. C., w ho paid a sh o rt

Wins Decision
The L aw rence W arehouse Company,
w ith th e B ank of A m erica N.T. & S.A.,
recen tly w on an exceedingly im por
ta n t decision in th e U nited S tates Cir
cuit C ourt of A ppeals for th e N inth
C ircuit. The decision should in te re st
all loan officers because it clarifies
several points reg ard in g b ailm en t of
com m odities as loan collateral. Also,
it confirm s th e am o u n t of legal p ro 
tection w hich b an k s have on th e ir
w arehouse-receipt loans.
In brief, the ru lin g s are as follows:
1. The U niform W arehouse Receipts
Act expressly repeals all acts w hich
conflict w ith it.
T his m eans th a t notice of tran sfer,
req u ired u n d e r c ertain circum stances
by B ulk Sales Law s, is n o t necessary
w h ere title is tra n sfe rre d to a b ank
u n d e r field w arehousing.
2. M erchandise held ag ain st bonafide w arehouse receipts is not subject
to a tta c h m e n t by creditors.

R epresentatives of tw en ty savings
and loan associations from in and out
of Des Moines, totaling about forty
people, attended th e luncheon. Dis
cussion a t the m eeting centered around
the relationship of G overnm ent and
p riv ate financial in stitu tio n s, and th e
relatio n sh ip of th e F ederal Home L oan
B ank and savings and loan associa
tions.

Department Enlarged

M r. T w o h y an d M r. R ich a rd so n

visit to Iow a’s capital city. P ictu red
here are Mr. Tw ohy, and R. J. R ich
ardson, presid en t of th e F ederal Home
Loan B ank of Des Moines.

Indicating th a t the supervision of
public relations activity is gradually
becom ing of m ajor im portance in th e
larg er banks of th e co untry is the re 
cent action of The N ational City B ank
of N ew Y ork in adding an o th er official
to its public relations d ep artm en t in
the ap p ointm ent of G ranville S. Car
rel, assistan t cashier, as head of th e
departm ent. N ational C ity’s public
relations w ork w ill continue u n d er
th e supervision of J. J. McNamee, as
sistan t vice president, and J. J. L aw lor
w ill be Mr. C arrel’s assistant.
W h at is probably th e best equipped
d ep artm en t of its kind in the co untry
m eets in m ost respects the req u ire
m ents of an average advertising agen
cy w ith its own m otion picture p ro 
jection room, staff photographer and
developing room, staff com m ercial art-

A Hearty Welcome to Members of. . .

The Iowa Bankers Association
and

Iowa Investment Bankers Association
We sincerely hope that your visit in Des Moines
will be as pleasant as our business relations.

Jackley

C om pany

INVESTMENT SECURITIES
EQUITABLE BUILDING

PHONE 3-5181

DES MOINES

Northwestern Banker Septem ber 19^0

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

,32

V. W. B

rew er

Co.

M u n ic ip a l B o n d s
N orth D akota and S ou th D akota are N u m b er O ne and
N u m b er I w o in p ercen ta g e o f debt red u ctio n in the
en tire U n ited States.

f ir st n a t

-

so o lin e b l d g

.

MINNEAPOLIS

Federa1 Discount
^Corporation
Dubuque, Iowa

Automobile Finance
T im e P a y m e n t P lan s for P u rch asers of
A u to m o b i le s an d H o u s e h o ld A p p l ia n c e s

u m m

SMALL LOANS

ist and addressograph unit. N ational
C ity’s advertising and publicity con
tact for its branches in 24 foreign
countries as well as its 71 branches
in New York City is directed from
this dep artm en t a t head office.
Mr. Carrel has alw ays been in te re st
ed in public relations activities and
his diversified experience since e n te r
ing the bank has enabled him to form
a wide acquaintance am ong ban k ers
th ro u g h o u t th e country. D uring his
“p re p ” school days in Greeley, Colo
rado, he w as associated w ith the G ree
ley N ational Bank. Follow ing g rad 
uation from the W h arto n School of
F inance of th e U niversity of P en n 
sylvania, Mr. C arrel joined N ational
City on Ju ly 15, 1929. He rotated
th ro u g h various divisions of the bank
u n til July, 1930, w hen he w as tra n s 
ferred to th e personnel d ep artm en t as
educational director in charge of the
ju n io r program . In May, 1937, Mr. Car
rel joined th e credit d ep artm en t and
later th a t y ear w en t to th e w estern
d istrict as a service m an w here he
w as appointed a ssistan t cashier on
May 23, 1940.

Defense Loans
T he F irs t N ational B ank in St.
Louis is in v itin g applications for “de
fense loans” from business and in 
d u strial concerns of th a t area th ro u g h
new spaper ad v ertisin g and other
media. The b ank says it fully realizes
the im portance of th e n ational de
fense program and stands read y to
m ake loans to business and in d u stry
for th a t purpose.

Coming Conventions
Iowa, H otel F o rt Des
Moines, Des Moines.
Sept. 18-20: N ational A ssociation of
S upervisors of S tate Banks,
Richm ond, Va.
Sept. 22-26: A m erican B ankers Asso
ciation, A tlantic City, New J e r
sey.
Sept. 30, Oct. 1, 2: M orris P lan B ank
ers A ssociation, Del M onte H o
tel, Del Monte, Cal.
Oet. 2-4: M ortgage B ankers Associa
tion, Chicago, 111.
Oct. 9-11: K entucky, B row n Hotel,
Louisville.
Oct. 16-19: N ational A ssociation of
B ank A uditors and C om ptrol
lers, St. Louis.
Oct. 24-25: N ebraska, H otel Lincoln,
Lincoln.
Oct. 28-30: F inancial A dvertisers Asso
ciation, The H om estead, H ot
Springs, Va.
N ov. 7-8: M id-Continent A.B.A. T ru st
Conference, Chicago.
N ov. 13-15: U. S. Savings and Loan
League, Chicago.
Sept. 9-11:

■ ii

Iowa

■

BRANCHES IN
Minnesota W isconsin

Capital, Surplus and Undivided Profits
Exceed One Million Dollars
■

■

*

Short Term

Collateral Trust Notes
■ ■ ■

Information on Request

Northwestern Banker Septem ber 19^0

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

33
served at th e W akonda Club from 12:30
to 2 p. m.
A nyone seeking fu rth e r inform a
tion reg ard in g th e F ield Day is re 
quested to com m unicate w ith Roy
Leriche, association secretary, a t 200
E quitable Building, in Des Moines.

IOWA
Investm ent Bankers
Association

Denied Overtime Pay
W A L T E R E. V IE T H
P r e s id e n t
D a v en p o r t

Organized 1935

LANS and a rran g em en ts for the
A nnual F ield Day of th e Iow a In 
P
vestm en t B ankers A ssociation, to be
held at th e W akonda Club in Des
M oines th e aftern o o n and evening of
W ednesday, Septem ber 11th, are now
com pleted, according to an an n o u n ce
m en t by A rth u r H. Keyes, general
ch airm an for th e occasion.
O utdoor sp orts w ill consist of golf
and tennis, and p erh ap s a horseshoe

R O Y W . L E R IC H E
S ecreta ry
D es M oines

B U N K ER has been in the hands of
th e p rin te r for several days, and the
1940 edition of th e w o rld ’s m ost d irty
rag should be com ing off the press
about the tim e you are reading this.
R em em ber—it’s all in fun.
Com m ittees for the F ield Day are as
follows:
G eneral ch airm an—A rth u r H .Keyes;
golf and tennis-—Jack Sparks and
T. C. H enderson; tran sp o rtatio n and
reserv atio n s — H arry W estphal and
Jam es C. Shaw; prizes, H a rry Graefe,
Don M urdoch and K enneth H enkle;
sw eepstakes tickets—Sherm Fow ler,
H om er K aupp and F red Gaehner; en 
te rta in m e n t—Jam es A. Cum m ins, W in
field Jackley and Mike D earth; reg
istratio n —H om er A. Cook.
As previously announced, the Iowa
In v estm en t B ankers F ield Day is be
ing held on th e closing day of the
Iowa B ankers A ssociation convention.
The b a n k e rs’ sessions conclude at
noon of Septem ber 11th, and th e Field
Day festivities s ta rt im m ediately
th ereafter. A buffet luncheon w ill be

The F a ir L abor S tandards Act does
not req u ire th a t em ployes be paid
overtim e wages w hen th e ir stipulated
salary exceeds the am ount to w hich
they w ould be en titled if th ey w ere
receiving the m inim um wage required
by the law, plus tim e and a half for
ex tra hours w orked, based upon th e
h ourly m inim um .
This, in substance, w as the stand
tak en recently by Judge T. W hitfield
D avidson of the U. S. C ourt for the
N o rth ern D istrict of Texas, in decid
ing a wage suit b ro u g h t un d er th e
labor law by five refining com pany
w orkers, w ho claim ed am ounts due
u n d er the statute.
Judge Davidson dism issed th e suit
of an em ploye w ho had contracted
to w ork for a flat m onthly w age of
$150. A lthough this em ploye w orked
in excess of the 42 hours p er w eek
lim it provided by the law, th e court
held he w as not en titled to overtim e,
stating: “Considering the n um ber of
h o urs actually w orked, th is pay ($150
per m onth) exceeds th e m inim um
tim e and overtim e provided by the
act, and th erefo re com plied w ith the
act . . .
he having entered into
a co ntract for a stipulated considera
tion w hich is in excess of th e m ini
m um wage fixed by law.

BONDS
P u b lic U tility
ARTHUR KEYES

gam e or tw o if anyone cares to in 
dulge. The com m ittee has m ade no
special a rra n g e m en t for indoor sports,
since activ ity of th is k in d usually
needs no com m ittee su pervision—the
m em bers an d g uests are perfectly
capable of supplying th e ir ow n indoor
am usem ents.
E n te rta in m e n t for th e b an q u et in
th e evening w ill be of its u su al high
quality. W e u n d e rsta n d th e re are so
m an y golf and atten d an ce prizes th a t
practically everyone a t th e p a rty will
w in som ething. E d ito rial and a d v er
tisin g copy for th e N o rth w estern

In d u stria l
R a ilro a d
M u n ic ip a l

A.C.ALLYNandc o m p a n y
In c o r p o r a t e d
100 W e s t M o n r o e S t r e e t , C h ic a g o
N ew Y ork
R e p r e se n ta tiv e s:

M i lw a u k e e
W a te r lo o

O m aha
D e s M o in e s

B o sto n
C e d a r R a p id s

N orthw estern Banker Septem ber Í9W

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

34
“U nder th e Act of C ongress now be
fore us, 25 cents p er h o u r is m ade th e
m inim um wage. P a rtie s m ay co n tract
as before, b u t em ployers of labor m u st
not pay less th a n 25 cents p er h o u r
. . . In th is case each of th e p lain 
tiffs en tered into a co n tract w ith this
em ployer. In so far as th ese contracts
did not violate the W age and H our
Law, th ey are valid and binding upon
both p a rtie s.”
The above should be of special in 
te re s t to bankers, w ith resp ect to th e
operation of th e W ages and H ours
L aw in th e ir institu tio n s.

Assistant Cashiers
M ilton J. H ayes and P aul C. R ay
m ond w ere elected assistan t cashiers
of th e A m erican N ational B ank and
T ru st Com pany of Chicago a t a m eet
ing of th e b a n k ’s board of directors,
held last m onth.
Mr. R aym ond came to Chicago in
1926, following his grad u atio n from
Yale U niversity, and has been asso
ciated w ith th e A m erican N ational
B ank in its credit division since 1933.
He is a m em ber of th e faculty of
N o rth w estern
U niversity
evening
school of com m erce and form erly

served as secretary -treasu rer of Chi
cago C hapter, R obert M orris Asso
ciates.
Mr. H ayes atten d ed th e U niversity
of Chicago, and has tak en graduate
w ork a t N o rth w estern U niversity.
He entered th e b a n k ’s em ploy in 1935
and has served continuously on the
in v estm en t staff. He is a m em ber of
th e faculty of Chicago C hapter, A m er
ican In stitu te of B anking.

New Vice President
The directors of The Live Stock N a
tional B ank have prom oted H arold P.
Jo h n sto n to vice president, it w as an-

Ill

The IN TER STA TE FIN AN CE
CORPORATION,f Dubuque, Iowa
. . . th e "15 Y e a r R eco rd " of this
ra p id ly g ro w in g c o rp o ra tio n h a s just
re c e n tly com e off th e p re ss, a n d is
a v a ila b le to a n y b a n k or in stitu tio n
u p o n re q u e st. This c o m p le te h isto ry
sh o w s th e re a s o n s a n d p ro o f of In te r
s ta te 's rise in A u to m o b ile F in a n c in g .
T he "E conom y P la n " of a u to m o b ile
fin a n c in g , w h ic h offers ra te s a s low
a s $3.00 p e r $100 p e r y e a r, is fe a tu re d
b y e s ta b lis h e d a u to m o b ile d e a le rs
in Iow a, W isco n sin , M in n eso ta , a n d
Illinois.
O n e s ta n d a r d form of n o te is issu e d
for a ll sh o rt te rm a c c o m m o d a tio n s.
This o b lig a tio n is h e ld b y le a d in g
b a n k s a n d in stitu tio n s a n d is o ffered
in c o n v e n ie n t m a tu ritie s a n d d e n o m 
in a tio n s a t c u rre n t d isc o u n t ra te s.
P ro m p t re p ly a n d c o m p le te in fo rm a 
tion to a ll in q u ire rs. A d d re ss y o u r
re q u e s t to . . .

IN T E R S T A T E
HOME OFFICE

N orthw estern B anker Septem ber 1940

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

F IN A N C E C O R P O R A T IO N
.

.

.

DUBUQUE, IOWA

H A R O L D P. J O H N S T O N

nounced recently by David H. Reimers, president. Mr. Jo h n sto n form erly
served as a ssistan t vice president.

With Central Hanover
C entral H anover B ank and T ru st
Com pany announces th e appointm ent
of F o ster M. H am pton to its out-oftow n division. Mr. H am pton w ill rep 
resen t the b ank in M issouri, Kansas,
Iowa and N ebraska.
F rom 1931 u n til he joined the Cen
tra l H anover staff, Mr. H am pton w as
a m em ber of the New Y ork Stock E x 
change brokerage firm of McClave &
Company. P rio r to en terin g th e brok
erage business, he w as associated w ith
the B ankers T ru st Com pany of New
York for about eight years, first as
m anager of its St. Louis office and
later as supervisor of out-of-town of
fices.
Mr. H am pton is a native of A rk an 
sas. He w as grad u ated from Yale
U niversity in 1916 and served as an
officer in the U nited States N avy d u r
ing th e W orld W ar.

35

TH E C O U N T R Y BANKER
SPEAKS
(C ontinued from page 15)
th e m to tell us w h a t k in d an d w hen
to buy, since th e y do n o t w ish to
com m it them selves.”
“W e v ery seldom in v est in an y se
cu rities w ith o u t first consulting th e
officers of our co rresp o n d en t b an k .”
“Our larg est loss w as on in v e st
m en ts m ade on th e advice of a form er
co rresp o n d en t.”
“T hey have been v ery helpful to us.”

Chart No. 3-A
C om paring th e percen tag es on th is
c h a rt w ith those of ten y ears ago, the
sam e tw o item s of In v e stm e n t Advice
an d A nalysis of Securities w ere listed,
b u t w ith an increase th is y e a r in th e
percen tag e of those seeking A nalysis
of S ecurities, and not so m an y looking
for In v e stm e n t Advice as th e re w ere
in th e p revious survey.
Comments:
“S etting up a bond account and fu r
n ish in g cred it in fo rm atio n on v arious
issues in w hich we m ig h t be in te r
ested.”
“T h eir re search facilities and w ill
ingness to advise has been a g re a t aid
in th e selection of our in v estm en ts.”
“Go over our in v estm en ts once or
tw ice a y e a r and give us the sam e
help we w ould give to one of our
valued custom ers.”
“God help co u n try b an k s th a t de
pend on city co rrespondents for in 
v estm en t advice.”
“Counsel and advice as to specific
secu rities.”
“A fter sad experience, we w ill nev er
play in a n o th e r m a n ’s back y a rd and
slide dow n his cellar door, because
sooner or la te r you are going to get
slivers w h ere it w ill h u r t th e m ost.”
“W e contact our city corresp o n d en t
on m ost of o u r in v estm en ts.”
“E v e ry b a n k er m u st th in k for him 
self and use his b est ju d g m en t.”
“W an t a d irect opinion w hen m ak 
ing in q u iries abo u t c ertain in v e st
m en ts.”
“J u s t general counsel—we can ’t ex
pect th em to tell us w hen to b u y and
w h a t to sell.”

Chart No. 4
As a p p a re n t from th e replies to th e
question in C h art No. 4, m ost co u n try
banks are n o t in terested in h aving
th e ir city co rrespondent help them
in stall a cost analysis system to help
th em com ply w ith th e W ages and
H o u rs law. You w ill note th a t 64
per cent of th e replies said th e y w ere
not in terested , and 6 p er cent said
th e y alread y had a system of some
kind. In analyzing th e replies to th e

q uestionnaires, it w as som etim es dif
Chart No. 5
ficult to sep arate these tw o item s,
The city b an k er should feel th a t he
since a n u m b er of banks said “No, we is doing a p re tty good job of servic
have a system now .” I t can be as ing his correspondent accounts, w hen
sum ed, th erefo r, th a t 70 p e r cent of 67 p e r cent of th e co u n try banks say
th e banks are n o t in terested or al th e ir P re se n t Service Is Satisfactory,
read y have a system of th e ir own.
as th ey do in th e an sw ers to th e ques
A few com m ents on th is question tion w hich th is c h a rt illustrates. Ten
are as follows:
y ears ago only 33 per cent answ ered
“N ot v ery practical for a sm all “satisfacto ry ” to this question—in
b an k .”
1940 th e favorable response has m ore
“Such a service w ould be welcome th a n doubled. I t w ould seem that,
to us.”
as a whole, th e co u n try b an k er is
“W e th in k th e law w ill be am ended
g ettin g w ell-rounded service, since
to exem pt banks.”
th e com paratively few suggestions
“W e already obtain analysis and for im provem ent are along w h at
suggestions.”
m ight be term ed specialized lines.

E. H. Rollins & Sons
In c o r p o r a te d

Complete Investment Services
for Banks and Individuals

Bonds
P U B L IC U T IL IT Y
R A ILR O A D
IN D U S T R IA L
M U N IC IP A L

H.

G

erald

N

E

o r d ber g

1114 N o r t h w e s t e r n B a n k B ld g .
M in n e a p o lis

NEW YO RK
S A N F R A N C IS C O

dw ard

H.

K

ane

Iowa R epresentative

R esiden t M anager

1010 A m e r ic a n T r u s t B ld g .
C e d a r R a p id s

C H IC A G O
P H I L A D E L P H IA

BO STO N
LOS ANGELES

N orthw estern Banker Septem ber 19W

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

36

COMMERCIAL
INVESTM ENT
TRUST
IN C O R P O R A T E D

A pparently 10 per cent of those re 
plying to this question h av en ’t heard
about the B anking Act of 1933, since
th ey still w an t in te re st on daily
balances.
Some of th e com m ents on this
question are:
“Come rig h t out and recom m end
p u rchase of certain in v estm en ts.”
“G ather up m ore cash item s on
w hich we get exchange.”
“By keeping ab reast of th e tim es,
and w hen a national tendency or
tre n d seem s to be developing w hich

w ould m aterially affect th e b an k
served, give us tim ely notice th ereo f.”
“A ssist in placing farm loans on a
ten year p lan .”
“F u rn ish us w ith tickets on the
fifty-yard line.”
“Stay out of co u n try b ank loaning
te rrito ry u n til asked to p articip ate.”
“I som etim es w onder if our account
actually pays for th e service we re 
ceive.”
“Advice on new law s affecting
ban k s.”
“T hey are g reat glad-handers in fair
w eath er—b u t icebergs in tim es of
stress.”

Chart No. 6
C o m m e r c ia l I n v e s t m e n t
T r u st Incorporated, with

capital and surplus in excess
of $56,000,000, provides a
nation-w ide sales finance
service thro u g h subsidiary
companies w ith a netw ork
of branch offices throughout
the U nited States.
T his
service, in the main, consists
of p u r c h a s i n g self-liqui
dating accounts, and ex
tends to autom obile dealers,
household appliance dealers,
and to m anu factu rers and
dealers in m any lines of in 
dustrial, commercial and
professional equipm ent, in 
cluding the heavy goods in
dustries.

MUNICIPAL
BONDS
W e S p ecia lize in
G e n e r a l M ark et
M unicipal
S ecu rities
W e B u y a n d Sell
Iow a P o w er & L ig h t Co.
6% and 7% P re fe rr e d S tock
For O ur Own A ccount

•

WHEELOCK & CUMMINS
C. I .T . offers its stand
ard notes for short term
accommodation in varying
am ou n ts from $1,000 to
$100,000, in maturities from
60 to 270 days and at cur
rent discount rates. These
notes are payable at any of
our 2 8 5 depositary banks
located in principal cities
throughout the country.
L a te s t p ublished f i n a n c i a l
statement and list o f depositary
banks w ill be mailed upon request.
ADDRESS

,

Treasurer
Commercial Investment
Trust Incorporated
1 Park Ave., New York, N. Y.
N orthw estern B anker Septem ber 19h0

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

In corporated
2 0 0 E q u it a b le B ld g .
P h o n e 4 -7 1 5 9
D E S M O IN E S

T h at th ey had no com plaint of any
kind to m ake about th e correspondent
service th ey are now getting w as the
reply of 82 per cent of the country
banks in response to the question il
lu strated by th is chart. The p ercen t
age w as exactly th e sam e as th a t ob
tained from an analysis of the replies
to this sam e question ten y ears ago
—city ban k ers take a bow!
As noted on th e chart, com plaints
reg istered w ere few. T en per cent of
them w ere of m iscellaneous n atu re,
too scattered to classify. One p er
centage noted on th e ch art should be
m entioned—4 p er cent of the co untry
ban k ers said th e ir com plaint w as th a t
th e city b ank solicited loans in the
co untry b ank te rrito ry . T his condi
tion seem ed to apply largely to one
state in w hich th e survey w as made,
and w hen th e replies from th is state
are analyzed separately, 7 per cent of
the co u n try ban k ers m ake this com
plaint.
The following are a nu m b er of the
com plaints m entioned:
“Lack of know ledge of co untry
b an k er problem s.”
“We w ould like to have the execu
tive officers of th e b ank call on us
occasionally.”

Since 1922
M U N IC IP A L and
G O VERN M EN T

BONDS

For Banks and Trust Companies

B A L L A R D - H A S S E T T COMPANY
INVESTM ENT SECURITIES
3 1 2 - 3 1 4 V a lle y Bank Bldg.

Des Moines

37
“Soliciting loans in our te rrito ry at
ra te s low er th a n ou rs.”
“Some city b an k s actively solicit
loans in th e te rrito ry of b an k s w hich
are not th e ir correspondents, b u t agree
to w ith d ra w from loaning if said
co u n try b an k w ill open an account
w ith th em .”
“Charge back exchange charges
w h en account should c a rry sam e u n 
d e r an aly sis.”
“Too lifeless and hard-boiled.”
“C harging our account 10 cents to
15 cents on every little check th e y are
unable to clear a t par, w hile we are
cary in g a balance w ith th em of $40,000 to $50,000 a t all tim es, and receiv
ing no services only w h at we pay for.”
“W hen th e y call on us or see us at
conventions, th e y prom ise a lot, but
th ey do not seem to rem em ber th is
a fte r th e y get back to 'th e ir city b an k .”

THE C IT Y BANKER
A N SW ER S
(C ontinued from page 16)
also can re n d e r its own custom ers a
service by h aving th em get in con
tact, w hen it is n ecessary to come to
th e city, w ith th e ir city corresp o n d en t
w ho m ay be of considerable help in
d irectin g th em w h en th e y come in to
do th e ir buying.
“As I said before, com petition is ex
ceedingly keen betw een city banks for
th e co u n try co rresp o n d en t b an k ac
co u n t and is largely a m a tte r of p er
sonal relatio n sh ip as th e re is v ery lit
tle th a t one b an k has to offer th a t a
com petitor cannot duplicate.
“P leasan t service, given in an effi
cient m anner, is th e best ad v ertisin g
th a t a co u n try or a city b ank can have
am ong its cu stom ers.”

Letter No. 7
"A few general ideas"
“F irs t of all, we feel th a t it is m ost
im p o rta n t for th e b an k er to fam iliar
ize him self w ith th e v aried facilities
offered by his correspondent, to m ake
in tellig en t and full use of all services
available. N atu rally , officers and re p 
resen tativ es of city b an k s w ill en
deavor to contact th e out-of-town
b an k er at conventions, group m eet
ings, or in his ow n office, to acq u ain t

him w ith such services in a general
way. W hen possible, how ever, we be
lieve th a t it w ould also be m u tu ally
helpful for th e la tte r to call in person
upon his correspondent to become b et
te r acquainted w ith its personnel,
special facilities, connections, or any
phase of its operations in w hich he
m ay be especially interested.
“We have set out in th e follow ing
p a rag rap h s a few general ideas w hich
occur to us in connection w ith the
cooperation as desirable on th e p a rt of
th e out-of-town banker, in order to im 
prove and secure th e m ost service
from his city correspondent. Our own
experience w ith banks convinces us

th a t th e m ajo rity are w illing and anx
ious to cooperate w ith th e ir corre
spondents, and these suggestions are
not offered in any sp irit of criticism ,
b u t ra th e r for m u tu al protection and
service.
“Confirm in stru ctio n s over official
authorized signature, use coded tele
gram s and te st w ords, and exercise
care in all im p o rtan t financial tra n s 
actions involving the p aym ent or
tra n sfe r of funds and the purchase,
sale, or delivery of securities.
“A dopt uniform in stru ctio n s p e r
tain in g to p ro test and w iring nonpay
m en t of item s, recom m ended by thej
A m erican B ankers Association.

n
i i
V J IIT I

GENERAL

MOT OR S

ACCEPTANCE

c

C O R PORAT I ON

is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
M otors C orporation and its world-wide affiliates:
CADILLAC, LA SALLE, BUICK , OLDSMOBILE, PONTIAC,

automobiles; fr ig id a ir e appliances for refrig'
eration and air conditioning; d e l c o lighting, power and
heating equipment; g m c trucks; Be d f o r d , v a u x h a l l
and other foreign made automotive vehicles.

Ch e v r o l e t

The business consists of investments in self-liquidating
credits, widely diversified as to region and enterprise,
capital employed being in excess of $80,000,000.
In obtaining short term accommodation, g m a c issues
one standard form of note. This obligation it offers to
banks and institutions, in convenient maturities
and denominations at current discount rates.

GENERAL
MOTORS
INSTALMENT

P L A N
These

notes

EXECUTIVE OFFICE
NEW YORK

are available, in limited amounts,
upon request.
BRANCHES
IN PRINCIPAL CITIES

N orthw estern Banker Septem ber 1940

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

38
“F ile p ro p er a u th o rity w ith city cor
resp o n d en t covering sig n atu res and
e x te n t of signing au th o rity .
“N otify p ro m p tly of changes in a u 
thorized signatu res, title of account,
or previous stan d in g in stru ctio n s.
“E nd o rse p ro p erly all item s, stock
certificates, or o th er docum ents sen t
to correspondents.
“H andle p ro m p tly collections or
cash item s received from city co rre
spondent and give careful a tte n tio n to
special in stru ctio n s, reasons for non
pay m en t of re tu rn e d item s and w ire

W r ite f o r o u r M o n th ly
M a r k e t L e tte r c o v e r in g

National D efense

advices w hen required.
“F u rn ish published figures and suf
ficient data to place city correspondent
in b e tte r position to direct business to
him and ren d er m ore th a n ro u tin e
service w henever special occasions
present.
“M aintain adequate or com pensat
ing balances in re tu rn for services
rendered.
“W e look upon it as our job to h a n 
dle in a prom pt and satisfactory m an 
n er any business received from cor
resp o ndent banks, regardless of th e
form in w hich it m ay be subm itted,
b u t we have searched for w ays in
w hich m u tu al cooperation m ight ten d
to im prove such service betw een cor
resp o ndent banks generally and, in
tu rn , redound to th e benefit of banks
and th e ir consum ers as a w hole.”

and

War Taxes

Net Profits

Goodbody & Co.
E sta b lish ed 1891

M a in O ffice
1 1 5 B r o a d w a y , N ew Y o rk
M em bers
N e w Y ork S tock E x c h a n g e
N e w Y ork Curb E x c h a n g e
C h icago B oard o f T rad e
N e w Y ork C otton E x c h a n g e
an d o th er p rin cip a l
S tock an d C om m odity E x ch a n g es

D e s M o in e s O ffice

L A V E R N E M. B A R L O W
Resident Manager
2 0 4 F L E M IN G B U I L D I N G
T e l. 4 - 5 1 2 1

formerly
B a b co ck , R u slito n & Co.

N et profits a fter dividends of all in 
sured com m ercial banks rose last year
to 30 cents p er $100 of deposits com 
p ared w ith 15 cents p er $100 of de
posits in th e previous year, according
to a survey of b ank earnings and ex
penses prep ared by th e B ank M an
agem ent Commission of th e A m eri
can B ankers Association.
O perating earnings from all sources
before deduction of expenses by
13,544 in su red banks th ro u g h o u t the
co u n try w ere only $2.87 per $100 of
deposits in 1939 com pared w ith $3.19
in th e previous year.
C u rren t operating expenses of th e
b anks declined d uring th e y ear to
$2.00 p er $100 of deposits from an
average of $2.25 in th e preceding year.
D eduction of these expenses from op

e ratin g earnings left a n et operating
earnings average of 87 cents for th e
y ear as ag ain st 94 cents in th e p re
vious year.
Recoveries on previous losses and
profits on securities sold increased
slightly in 1939. T hey rose to 68 cents
p er $100 of deposits from 66 cents a
y ear earlier. Losses and charge-offs
last year, on th e o th er hand, declined
to 83 cents p er $100 of deposits com
pared w ith $1.00 a y e a r earlier.
A ddition of recoveries and profits
on securities, afte r deduction of losses
and charge-offs, left n et profits before
dividends of 72 cents p er $100 of de
posits for th e y e a r com pared w ith net
profits of 60 cents for th e previous
year. D ividends paid on both p re 
ferred and com m on stock am ounted
to 42 cents p er $100 of deposits in 1939,
w hile a y ear ea-rlier th e y totaled 45
cents. D eduction of these dividends
paid from n et earnings left a n et profit
figure for last y ear of 30 cents per
$100 of deposits com pared w ith 15
cents for th e y ear 1938.

Ten Consecutive Years
Dana E. M cCutchan, associated w ith
th e W hite & Odell agency of N o rth 
w estern N ational Life of M inneapolis,
recently becam e th e 16th of the com
p a n y ’s agents to com plete ten con
secutive years of m em bership on the
App-A-Week Club. Mr. M cCutchan
joined N o rth w estern N ational in 1929
and began his 520-week record of con
sisten t production sh o rtly th ereafter.
In recognition of his achievem ent Mr.
M cCutchan has been aw arded $100
cash—$10 for each y ear of m em ber
ship—and a p air of sterlin g silver
candlesticks as a special 10-year aw ard.

JAM IESON

THANK YO U -

&
W e are glad to take this opportunity in this convention issue to
express our appreciation to Bankers of Iowa for their cooperation
in supplying data for our recent confidential Survey on the Evalua
tion of Bank Shares.

VERNON GRANT, Jr.
--

Stocks
Bonds
Grain

q

Cotton
Butter
Eggs

C om m odity Brokers
•

The continuous accumulation of data of this type makes possible the
various valuabl e services rendered by competent Investment Counsel.

=

CO M PA N Y

INVESTMENT COUNSEL
2 0 2 K P B ld g .

P h o n e 3 -6 9 0 5

DES MOINES

Members

N ew York Stock Exchange
and Other Principal Exchanges
•
ST. PAUL — MINNEAPOLIS
•

G overnm ent — M unicipal
Corporation Bonds
•
CHARLES C. RIEGER
Manager

Bond Department
Minneapolis — Atlantic 8235
________ _____________________________

Northwestern Banker Septem ber 1940

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

39

N EBRA SKA
IN V E S T M E N T

BAN KERS

A S S O C IA T IO N

HOW ARD BUFFET
P r e s id e n t

CECIL W. SLOCUM

Omaha

S e c re ta ry

May M artin, a fte r n early 37 y ears
w ith th e Occidental B uilding and
L oan A ssociation of Omaha, 25 of
w hich she h ad been head of th e as
sociation’s in su ran ce d ep artm en t, re 
tire d recently.
E m ployes of th e association te n 
dered a testim o n ial d in n e r in h er h o n 
or at O m aha’s H otel Fontenelle.
H er successor w as Mrs. E. N. R ow 
ell, w ho h ad been head of th e in s titu 
tio n ’s ta x and re n ta l departm en t.
Miss M artin becam e se cretary to th e
late E. N. Bovell, th e n se cretary of th e
O ccidental, on N ovem ber 7, 1903, w hen
she w as a young N ebraska school
teach er w ho h ad ju s t come to Om aha
and tak en a business course. I t w as
h e r first job in th e business world.
As head of th e firm ’s in su ran ce de
p artm e n t, it w as Miss M artin ’s job to
see th a t all th e p ro p e rty in w hich th e
association had an in te re st w as cov
ered by insurance. In th e 25 y ears she
held th a t p a rtic u la r job, she recalled
th e re w ere no losses w hich w ere not
covered.
She plans to tra v e l and “to do a few
th in g s I n ev er had tim e to do b efore”.
She w ill live in K ansas City.

M ayor F. E. Ziegenbein of N ebraska
City signed $868,000 of bonds at Chi
cago th e day before. B ridge tolls w ill
rem ain unchanged.
Previously, M ayor Ziegenbein reg is
tered w ith S tate A uditor R ay Johnson
th e $868,000 issue of bridge bonds
(bearing 3 V2 p er cent in te re st), recen t
ly purchased by the city.
The m unicipality hopes to m ake the
bridge free by re tirin g th e bonds from
toll receipts.
D ouglas county officers at Omaha
recently held a 22-year-old Negro w ho
confessed, th ey said, th e killing of
W allace Richie, 27, Negro chauffeur
em ployed by Ford E. H ovey, p resi
d ent of th e Occidental B uilding and
L oan A ssociation and king of Ak-SarBen.
T he confessed slayer w as first held
on a charge of robbing a service sta-

T he W aubonsie bridge across the
M issouri riv e r a t N ebraska City offi
cially becam e th e p ro p e rty of th e city
of N ebraska City A ugust 17, w hen
$800,000 w as paid to th e p riv ate com 
pany, re p re se n tin g a re tu rn to stock
holders of about $85 on $200 p referred
shares.

H arold Johnson, N ebraska securities
director, said at Lincoln recently th a t
the b ro k e r’s p erm it of an Omaha se
curities concern and th e salesm en’s
p erm it of its president, w ere sus
pended on th e basis of an injunction
obtained by th e securities and ex
change com m ission in federal court at
Omaha.
The in junction prohibits the com
pany and its p resident from “violating
the fraud provision of th e securities
act of 1933 and th e over-the-counter
section of the securities exchange act
of 1934, in effecting frau d u len t tran sac
tions as broker-dealer.”

Most Lamblike
Doris w as in love, and w as anxious
to h ear th e news.
“So y o u ’ve seen daddy, darling? Did
he behave like a lam b?” She asked
Billy.
“Absolutely! E v ery tim e I spoke he
said ‘Bah!’ ” declared h e r sw eetheart
grim ly.

L

a

m

B

r

s o
o

s

n

.

& G o.
E

s t a b l is h e d

1874

141 W. Jackson Blvd., Chicago
50 Broadway, New York

R.E.Crum mer & C o m pan y
1ST NAT BANK BLDG

F ed eral collections of b oth co rpora
tio n and in dividual tax es in N ebraska
and Iow a rose d u rin g th e fiscal year
ju s t ended, com pared w ith collections
th e preceding year, according to the
in te rn a l rev en u e bureau.
N eb rask a re tu rn e d $4,652,589 in cor
po ratio n and $2,852,515 in individual
incom e taxes for 1940, com pared w ith
$4,217,853 and $2,841,635. Iow a’s $7,732,684 corporation and $4,817,189 in 
dividual ta x collections for 1940 com 
pared to $7,011,762 and $4,699,286.

tion at G retna, Neb., and came to
Omaha from so u th ern M issouri last
fall.
R ichie’s body w as found at a spot a
little m ore th a n a mile w est of Eightyfo u rth stre e t road.

CHICAGO ILLINOIS

Established 1897

M UNICIPAL
BONDS
□
O M A H A O F F IC E
508 In su ra n ce B u ild in g
M . T . C r u m m e r , M gr.

D E S M O IN E S O F F I C E
314 Equitable B ld g.
W a lter P . D a v is , M gr.

Our b ra n ch o ffic e s are
equipped to render com 
p le te b ro k era g e serv ice
in the handling of grain
(ca sh an d f u t u r e s) ,
stocks, bonds, cotton and
provisions. Private wires
direct to all m arkets.
BRANCH OFFICES
N e w York, N. Y.
Buffalo, N. Y.
Cedar R apid s, I ow a
D av en port , I ow a
D e s M oine s, I ow a
Dubuque, I ow a
F ort D odge , I ow a
Iowa Falls, I ow a
M ars hallto w n, Iowa
M ason City, I ow a
Sioux C it y , Iowa
S to r m La ke , I ow a
W ate rlo o, I ow a
Frankfort, Ind.
La F aye tt e , Ind.

Minneap olis, Minn.
St. Paul, Minn.
K ansas C it y, Mo.
Si. Louis, Mo.
Omaha, Ne b.
Lincoln, Neb .
B lo om ington, 111.
D e K alb , 111.
Gilman, III.
Galesburg, 111.
La S alle, III.
Peor ia, 111.
Quincy , 111.
Musk og ee, Okla.

M EM BERS OF LEADING SECURITY
an d C OM M O DITY EXCH ANGES

Northwestern Banker Septem ber i9k0

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

40

An Essential of Preparedness
IS

an alert, progressive, and prosperous agriculture
of which

livestock is a basic necessity.
★

★

★

★

★

★

W E ARE ESPECIALLY EQUIPPED A N D LOCATED
TO SERVE BANKS, PRODUCERS, A N D FEEDERS IN
FIN A N CIN G LIVESTOCK.

Stock Yards National Bank
OF SOUTH OMAHA

Omaha, Nebraska
M EM BER

Northwestern Banker Septem ber 19'i0

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

FEDERAL

D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

41
w anted to get th e ir g rain binned.
Some rigs sh u t dow n early and a t
tended.
The bank received m any letters and
telegram s of congratulations and the
lobby w as filled w ith flowers sent by
th e ir city friends.
F ifty y ears of service speaks well
not only for the b ank m anagem ent b u t
also for the com m unity aro u n d Belden.

NEBRASKA
NEW S
C. 0 . N E U M A N N
P r e s id e n t
O akland

WM. B. H U G H E S
S ecreta ry
Om aha

With Chadron Bank

Former Banker Killed

F ra n k lin Coffee recen tly assum ed
duties in th e F irs t N ational Bank,
Chadron, and in doing so is th e th ird
m em ber as w ell as gen eratio n in th e
fam ily to tak e up active w o rk in th is
long-established b an k in g in stitu tio n in
Chadron. He is a son of Mr. and Mrs.
C. F. Coffee, ahd a gran d so n of the
w ell-know n Col. C. F. Coffee, w ho u n til
his death, w as connected w ith the
bank.

N athan W ilson, 65, form er b an k er
a t Strom sburg, w as in stan tly killed
w h en his car crashed into the re a r end
of a tru ck on a county highw ay th ree
m iles south of Polk.
W ilson resided in S trom sburg m any
years, b u t disposed of his in terests
th e re about 17 y ears ago. He rem oved
to C alifornia b u t recently re tu rn e d to
S trom sburg to reside.

Dies in Oakland

Celebration

A. L. Cull, long-tim e resid en t of Oak
land and w ell know n th ro u g h o u t B u rt
county, died a t his hom e recently.
Mr. Cull, a resid en t of O akland for
nearly half a century, w as in th e b a n k 
ing business a t one tim e and later en
tered th e real estate and in su ran ce
business. He w as an extensive landow ner and p ro m in en t in affairs in his
com m unity and county.

The F irst N ational B ank of Belden
celebrated its 50th an n iv ersary last
m onth. R egistration began at R abdau
P a rk at 4 p . m. and a V irginia ham
su p p er w as served at 5:30, followed by
a talk by Don C unningham , secretary
of th e Sioux City Live Stock Exchange.
Six h u n d red and sixteen registered,
w hich w ould probably have been dou
bled if rain s had not held up th re sh 
ing. Small g rain w as beginning to
sp ro u t in th e shocks and the farm ers

Anniversary
Twenty-five y ears ago last m o n th
th e F a rm e rs S tate B ank, G rant, opened
for business in th e back room of a drug
store in a fram e building a t th e p re s
e n t location. M. D. K eller and E. E.
Ja ck m an w ere th e officers. The b an k
steadily grew u n d e r th e m anagem ent
of those officers u n til 1930 w h en it w as
conv erted into a n atio n al b an k in g in 
stitu tio n u n d e r th e nam e of T he F a rm 
ers N ational B ank of G rant.
F ro m th e $11,000 original capital the
b an k has b u ilt up its capital stock ac
count to n early $90,000. The old w ood
en stru c tu re has been displaced by a
good brick building, and th e b an k now
has deposits of over half a m illion dol
lars.

Capital Increased
A t a special m eeting of stockholders
of th e C om m ercial S tate B ank of
W ausa, a change w as m ade on th e
book value, and some obligations re 
tired.
The listed p re fe rred capital
stock w as for $36,000, and u n d e r th e
new am en d m en t p re fe rred capital
stock w ill be listed a t $50,000.

Change in Hours
Com m encing A ugust 15th, banking
hours w ere changed at N eligh from 9
to 3 instead of 9 to 4 as at present. The
change was m ade necessary to com ply
w ith the provisions of the wage and
hour law regulating hours of labor.

For New Bank
The Tilden N ational B ank has filed
articles of incorporation at Lincoln for
a state c h a rte r w ith a capital of $25,000.
The incorporators are J. R. K inder,
Lincoln; J. J. R yan and B. E. G raham ,
Tilden; C. H. Kelsey, Norfolk; C. E.
M arquardt, Madison, and C. A. Sm ith,
Lincoln. Mr. R yan states th a t it w ill
probably be th e la tte r p a rt of Septem 
ber before the reorganization is finally
completed. The change will not affect
th e business of the b ank as far as the
public is concerned and w ill continue
as a m em ber of the F ederal Deposit
Insu ran ce C orporation.

Rotary Speaker
Jo h n S. Van A uken w as the guest
speaker of th e L exington R otary Club
at a recent w eekly m eeting. Mr. Van

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1309-15 HOWARD STREET

OMAHA, NEBRASKA
Northwestern Ranker Septem ber 1940


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Federal Reserve Bank of St. Louis

42
Auken, w ho is vice p resid en t of the
L exington S tate B ank, talk ed on the
subject, “Econom ic T ren d s.”

Retires Preferred Stock
T he F irs t N ational B ank of H ooper
has re tire d all of th e rem ain in g of the
p referred capital stock of th e b ank
held by th e R econstruction F inanace
C orporation.
T he capital stock of th e b an k now
consists of all com m on stock in th e
am o u n t of $50,000, and has su rp lu s and
undivided profits of $20,800, a to tal cap
ital stru c tu re of $70,800.
T he stock of th e b an k is all ow ned
by local people, and its inv estm en ts
are n early all of local origin.

Change in Officers
A m eeting of th e D alton State B ank
w as held recently, a t w hich tim e R. L.
S cherer resigned as vice presid en t and
Guy E. E llsw orth, a new stockholder,
w as nam ed to th e position. Mr. E lls
w o rth w ill serve as executive head of
th e in stitution. Lyle Rabe, an em 
ploye of th e b ank th e p ast ten y ears
and th e last few y ears a ssistan t cash
ier, w as given an advance to th e cashiership.

Quick th in k in g of Lloyd Blain, an
em ploye of th e S tephens N ational
B ank, th w a rte d th e atte m p t of two

oj Omaha

OCTOBER 24th and 25th

LINCOLN

Services w ere held recently for E. F.
W iley, 77 years, w ho passed aw ay at
his hom e in W auneta. Mr. W iley, a
director of th e W auneta F alls Bank,
w as a pioneer, com ing to W auneta in
1885. He re tire d from th e real estate
and in surance business a t th e age of
70 years.

Oldest National Bank
From Omaha West

Resigns

Nationalized 1 8 6 3
O FFICER S
O. H .
T . L . D a v i s ............................................. P r esid en t
C. H .
F . W . T h o m a s .................................V ic e P r esid en t
J . F . M c D e r m o t t ...............................................V ic e P r e sEid. e F
n t.
E . e nNt .
C.
D . S a u n d e r s ............................................. V ice P r e sid
J. F.
J . T . S t e w a r t , I I I , V ic e P r e s , an d C ashier
H . A.
A.
H . Ch i s h o l m .................................. A ssista n t C ashier

tra n sie n t T exans to pass bad checks
in F rem o n t recently.
L. C. D iyer and his w ife of Dallas,
Texas, opened a $3.00 checking account
a t th e local bank. T hey im m ediately
w rote a check for th e full am ount of
the deposit in th e bank. The couple
th en m ade tw o cash purchases in other
stores in tow n and visited w ith the
clerks so th a t th e y w ould be recog
nized w hen th e y re tu rn e d to cash a
check, officers believed.
J u s t before th e b an k closed, Lloyd
B lair received a telephone call from
a cafe asking him if a check by D iyer
w as good. B lair told th e w aitress to
hold th e m an th ere u n til he arrived.
He w en t to th e re sta u ra n t afte r calling
the sheriff’s office and detained D iyer
and his w ife u n til a deputy arriv ed to
m ake th e arrest.
D iyer pleaded guilty to a charge of
issuing a check w ith o u t sufficient
funds and his w ife also pleaded guilty
to a charge of vagrancy.

Director Dies

The

E l l i o t t ....................... A ssista n t
V e b e r ........................... A ss is ta n t
J e p s o n ......................... A s s is ta n t
S o l o m o n ..................... A ssista n t
D a v i s ............................ A ss is ta n t
A r n s b e r g e r .............. A ss is ta n t

C ash ier
C ashier
C ashier
C ash ier
C ashier
C ashier

W . E . S p e a r ...................................T ru st Officer
E . G. S o l o m o n . . . . A ssista n t T ru st Officer


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

Thursday and Friday

HOTEL

First National Bank

N orthw estern B anker Septem ber 1940

LINCOLN

Bad Checks

Charter No. 2 0 9

M em ber
F ed eral R eserv e System

STATE CONVENTION

M em ber
F ed eral D e p o sit In su ran ce C orp oration

W alter Good, a ssistan t cashier at the
F irs t N ational Bank, Chadron, for the
p ast several years, com pleted his serv
ice th ere recently.
Mr. Good cam e to th e b ank 10 y ears
ago last A pril. D uring this tim e he
has ren d ered faith fu l and efficient
service.

On Bank Board
R ay Moon of F a irb u ry , w ell know n
in B eatrice, has been m ade a director
of th e F irs t N ational B ank a t F a ir
bury. He is a son of Mrs. Mabel Moon
of th a t city and th e late F ra n k R.
Moon, po stm aster th e re w ho died early
th is spring.

43
a t a buffet supper a t th e Clark hom e
for eight couples preceding dancing
a t th e Omaha C ountry Club. The p arty
honored Jo h n Schirding of P etersburg,
Illinois, a g uest of th e Clarks. Mr.
C lark is presid en t of th e Omaha N a
tional Bank.
The Om aha club’s building a t T w en
tie th and Douglas streets in Omaha
w as sold recently to th e club for $30,000 by th e Omaha N ational B ank as
tru ste e for th e estate of C. N. and
N ettie Dietz of Omaha.

Jacob J. Grest, 49-year-old vice p resi
d en t of th e F ed eral F a rm M ortgage
corporation in charge of th e Omaha
b ranch, w as in ju re d fatally recen tly
in an elevator accident a t th e F a rm
Credit b uilding in Omaha.
He w as cru sh ed b etw een th e sill of
th e elevator cage and th e floor sill
and w all a t th e second floor level.
Mrs. G rest an d th e ir d au g h ter, P eg
gy, w ere a t L ake Okoboji, Iowa, w hen
th e accident occurred. A son, R ichard,
w as in Chicago.
Mr. G rest w as born a t L ittle Falls,
Minn., and w as a b a n k e r a t V alley
City, N. D., u n til 1921. F ro m 1921 to
1927, he w as associated w ith th e W ar
F in an ce corporation, a federal agency,
a t its M inneapolis office. He th e n w as
connected w ith th e Chicago Jo in t
Stock L an d B ank u n til com ing to
O m aha in 1936.
R obert C hangstrom , 14, son of Mr.
an d Mrs. Jo h n A. C hangstrom , suf
fered a fra c tu re d w rist and o th er in 
ju rie s w h en he fell from th e roof of a
building a t B attle Lake, Minn., w hile
lau n ch in g a m odel airplane.
H is fath er, vice p resid en t of th e
Om aha N ational Bank, said th e y o u th
sp en t tw o days in a h o sp ital th e re
a fte r th e accident.

w ho have been sum m ering there. Mr.
Davis is presid en t of th e F irs t N a
tio nal B ank of Omaha.
Also v isitin g th e Davises w ere Mr.
and Mrs. W. H. W heeler of Omaha.
T he Davises expected to re tu rn to
Omaha afte r L abor Day. R etu rn in g
a t th e sam e tim e w ere Mr. and Mrs.
W allace E. Spear and Mr. and Mrs.
L aw rence B rinker.

Miss Jessie Clark, d au g h ter of Mr.
and Mrs. W . D ale Clark, en tertain ed

A ccused of national b an k act viola
tion, an Iow a w om an, 22 y ears old,
w as b ro u g h t to Om aha recently and
tak en to th e county jail. She and h er
h u sband w ere accused of soliciting
fake m agazine subscriptions am ong
ru ra l teachers. The w om an w as ac
cused of cashing checks, obtained from
such subscriptions, at national banks
at H artin g to n and Belden, N ebraska.
H er husb an d w as being sought.
F red W . Thom as, vice presid en t of
th e F irs t N ational B ank of Omaha,
w as appointed to th e Om aha public
lib rary board recen tly by M ayor B ut
ler, to succeed W. B. M illard, Jr., w ho
is vice presid en t of th e Omaha N ation
al Bank.

FEED ER LOANS
F o r m o re th a n

th irty y e a r s C o rre s p o n d e n t B anks

h a v e fo u n d o u r co -o p e ratio n , in th e h a n d lin g of th e ir
e x c e ss F e e d e r L o an s, v e ry s a tisfa c to ry .

W. B. M illard, jr., vice p resid en t of

th e O m aha N ational Bank, w as called
to B utte, M ontana, by th e serious ill
ness of his b ro th er, Josep h M illard,
follow ing an appendectom y.

W rite u s

Mr. and Mrs. W alter R oberts re 
tu rn e d to Om aha recen tly a fte r a stay
a t L ake M iltona, n e a r A lexandria,

L ive Stock N ational Bank
Omaha

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

S e n d u s y o u r s u rp lu s W HEAT LOANS

F. E. D A V E N P O R T & C O .

(Member Federal Deposit Insurance Corporation)

OM AHA

N orthwestern Banker Septem ber 19^0

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

44

Harness the Loan Power in Inventory
D o n ’t m ake the m is
t a k e of t h i n k i n g
th a t all business
e x e c u t i v e s , b ig
enough to be w o rth 
w hile loan p ro s
pects, k n o w
all
about in v en to ry fi
nancing and D ouglas-G uardian serv 
ice. O ur field m en
r e p o r t th a t h u n 
dreds of th em don’t,
and th a t desirable
loan opportunities
exist alm ost ev ery 
w here.

Mr. and Mrs. R ay R. R idge left re 
cently for a vacation a t D evil’s Gap
lodge on th e C anadian border in the
Lake of th e W oods country. Before re 
tu rn in g to Omaha, th ey expected to go
to N o rth ern P ine lodge near P a rk
Rapids, Minn., w here th ey have spent
th ree seasons. Mr. Ridge is vice p resi
d en t of th e Om aha N ational Bank.

through

Field Warehousing bi/ Douglas-Guardian
C a ll in y o u r D o u g la s-G u a r d ia n m a n . N o o b lig a tio n . H e'll b e g la d
to a n s w e r a n y q u e stio n s a n d s u g g e s t h o w to lo c a te n e w a n d
d e s ir a b le lo a n s . O ur b o o k let FREE on r e q u est.

D O UG LAS - G U A R D IA N W A R E H O U SE

CO RP.

N ation-w ide F ield W areh o u sin g Service
S u ite 1104A, 100 W . M on roe St., C hicago, 111.
118 N o . F ron t St., N ew O rleans, La.
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77

N e w Y ork , N . Y .
D a lla s, T ex a s
S p rin g field , M ass.
C in cin n a ti, Ohio
M em phis, T en n .
S an F r a n c isco , C al.
E a sto n , M d.
Los A n g e le s, C al.
A tla n ta , Ga.
T am p a, F la .
R och ester, N . Y .
C levelan d, Ohio
S p rin gfield , M o.
P o r tla n d , Ore.

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Mr. Thom as sm iled w hen he w as
asked if he had read Jo h n Steinbeck’s
“G rapes of W ra th ”, tw o copies of
w hich are ow ned (but not circulated)
by th e Omaha library.
M ayor B u tler expressed reg ret th a t
Mr. M illard found it im possible to
continue on th e lib rary board, and
th an k ed him for “the fine w ork he has
done.”

x

c

UP

WORLD FAMOUS
WATERS OF

tision
SPtUMOS
u i r r A i in l
MISSOURI

Curative m ineral w aters . . .
Opportunities for all sports
and recreations . . . Air
conditioned sleep in g rooms

-t
Invitatio n s w ere received in Omaha
for th e m arriag e of Miss Shirley G er
tru d e Ford, d au g h ter of Mr. and Mrs.
S. Ford of M inneapolis, form erly of
Omaha, to R obert F aegre of M inneap
olis, at St. M ark’s E piscopal ch u rch in
M inneapolis. A reception followed at
the M inikahda club.
Mr. F o rd w as an officer of the
U nited States N ational B ank of Oma
ha before going to M inneapolis. His
dau g h ter atten d ed B row nell H all in
Omaha.
A lv in E. Johnson, presid en t of the
Live Stock N ational B ank of South
Omaha, w as host recen tly a t th e b a n k ’s
an n u al picnic a t th e T w enty club on
th e P latte riv e r south of Omaha. A
chicken d in n er w as served to em 
ployes and th e ir fam ilies. Games and
dancing followed.
Mrs. W . D ale Clark and daughter,
Miss Jessie, re tu rn e d recently from
California, w here th ey spent th ree
weeks. T hey w ere in Los Angeles
m ost of th e tim e and visited th e San
F rancisco fair.

T he F irs t N ational B ank of Omaha
has doubled th e size of its personal
loan departm ent. John F. D avis, vice
president, and son of P resid en t T. L.
Davis, said all new fixtures and the
latest type of indirect lights have been
installed.

. . . Write for information
or reservations.

ELM S
N orthwestern Banker Septem ber 19k0

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

H O TEL

SE L L

Y O U R

B A N K

The "Walters” W ay
Without Publicity
Qualified, carefully investigated bank
employees furnished free
T H E CHARLES E. W A LT ER S CO.
Omaha, Nebraska

A

>

45

H E job of salvaging w h a t w as left
follow ing th e eru p tio n of N ebras
T
k a ’s ban k in g system back in th e early
th irtie s cam e to a v irtu a l conclusion
A ugust 22 w h en th e a d m in istrativ e
receiv ersh ip division of th e state
b an k in g d ep artm en t p u t th e assets of
B ank of S ta p le h u rst on sale.
T he S ta p le h u rst b an k is th e last of
ninety-four th e ad m in istrativ e receiv 
ership, u n d e r th e direction of Ben
N. Saunders, state su p e rin te n d e n t of
banking, has liquidated since June,
1933.
D uring th a t period, th e depositors
of those in stitu tio n s have received a
to tal of $7,666,617, or an average of
70 p er cent of th e ir deposits. F o u r
teen of th e b an k s paid th e ir deposi
to rs in full, dollar for dollar. T he cost
of ad m in isterin g th e receiverships

Hotel
Wellington

d u rin g th e five-year period has av 
eraged 7.05 per cent.
In th e opinion of S u p erintendent
Saunders, th e b itte r b anking lesson
h anded to N ebraska du rin g th e past
decade has one shining virtue: it
w on’t hap p en again.
“W e w on’t have b an k failures like
those again,” he said, “for several re a 
sons. In th e first place, the experi
ence b an k ers received d uring th e days
of depression and d ro u th have made
th em far m ore cautious an d conserva
tive.
“In th e second place, N ebraska
b a n k ers are cooperating fully w ith
th e d ep artm en t of banking and th e de
p a rtm e n t is carefully supervising the
banks.
“The creation of the FD IC has done
m uch to stre n g th e n banks and th a t
agency is cooperating to m ake banks
stronger.

“W ith ev erything considered,” he
added, “I th in k N ebraska banks are
stro n g er today th a n th e y ’ve ever been
despite th e dro u th and the general
ag ricu ltu ral outlook.”
T h at N ebraska banks are stable is
indicated fu rth e r by the fact th ere
h a sn ’t been a failure since th e Se
cu rity State B ank of L aw rence closed
its doors October 3, 1939. Covered by
the FDIC, th e depositors w ere paid
in full, and th e banking d ep artm en t
as ad m in istrativ e receiver had paid
all claims, including th e FDIC, by last
Ju ly 3rd.
“The life of a receivership,” S aun
ders com m ented, “should ru n betw een
tw o and five years. If it ru n s longer
th a n th at, I w ould say it’s no longer
in the in te re st of the depositors.”
N ebraska has tw o divisions acting
as receivers. One is the ad m in istra
tive division u n d er Saunders, th e other
is th e judicial u n d er E. H. L uikart,
judicial receiver.
The U nited States N ational B ank of
Omaha and th e C harles B. K eller es
tate appealed recen tly to th e N ebras
ka suprem e court from a Douglas
county d istrict co urt ju d g m en t of
$584 in th e ir $2,500 suit ag ain st the
Loup R iver Public Pow er d istrict for
dam ages to land caused by tra n sm is
sion line construction.
R obert B. Vance, m anager of the
Omaha N ational B ank b u i l d i n g ,
th o u g h t he had a rig h t to “beef” re 
cently w hen he got a le tte r from a dog
ra ise r in C onnecticut about w h a t to
feed his E n glish setter, Maxine, w hich
Vance obtained from th e C onnecticut
m an.

"Experienced*
Experience is the keystone of Continental

W e a re h a p p y to list am ong
o u r re g u la r guests, a larg e n u m 
b e r of th e b a n k in g fra te rn ity .
Y ou too w ill th o ro u g h ly en jo y

N ational service.

O ur officers h a v e h a d

y e a rs of correspondent experience an d this
b an k h a s served N ebraska for 31 years.

o u r C ourtesy an d H o sp ita lity .
S u r p r is in g ly R e a so n a b le R a tes
R o o m s W ith B a th

$ 2 .0 0 — $ 2 .5 0

F a rn a m a t 18tli S treet
O M AHA

( O N T ! N E N T A L R A T IO N A L

So) Ban<
L IN C O L N

Member Federal Deposit Insurance Corporation

Northwestern Banker Septem ber 19A0

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

46

•
The e a ste rn e r w rote: “If fresh and
frozen m eats are not available in
Omaha, feed h er . . .
etc., etc.
Omaha, in case you and th e e a ste rn 
er have n o t heard, ra n k s as one of
th e biggest m eat packing cen ters in
th e nation and claim s to have passed
K ansas City as th e n a tio n ’s second
larg est livestock m arket.

Annual Meeting
The d irectors of th e P lattsm o u th
State B ank m et recen tly for th e p u r
pose of electing officers, th is bringing

N E B R A S K A

NEWS

into the m em bership of the executive
staff of the bank, E. W. Burdic, who
has closed out his banking in terests in
St. E dw ard, N ebraska.
The officers selected were:
P resident, H. A. Schneider; vice p res
idents, Carl J. Schneider and E. W.
Burdic; cashier, F ra n k A. Cloidt.
D irectors—H. A. Schneider, C. J.
Schneider, E. W. Burdic, F ra n k A.
Cloidt and H en ry Horn.
Mr. Burdic, w ho is now a m em ber
of th e executive officers of the local
bank, has closed five v ery successful
y ears in th e B ank of St. E dw ard, one

“T h e B a n k at th e Y a rd s”
O F F IC E R S
C. L . F r e d r ic k se n , P r e s id e n t
M . A . W ils o n , V ic e P r e s id e n t and C ash ier
W . G. N e ls o n , A s s is ta n t C ash ier
W . C. S ch en k , A s s is ta n t C ash ier
L. W . R o ss, A s s is ta n t C ash ier

D IR E C T O R S
C. R. M c K en n a , P r e s id e n t, J o h n so n B is c u it Co.
B. L. S iffo rd , A tto r n e y , S iffo rd & W a d d e n
G. F . S ilk n itte r , P r e s id e n t, S io u x C ity
S to ck Y a rd s C om pan y
C. L . F r ed rick sen , P r e s id e n t
M . A . W ils o n , V ic e P r e s id e n t and C a sh ier
H . C. B o s w e ll, S ec r e ta r y -T r e a su r e r ,
W e s te r n C o n tr a c tin g C o rp oration

CONVENTION TIME
Down through the y ears, the Live Stock
N ational Bank of Sioux City h a s w orked h an d
in h a n d with fellow m em bers of the Iow a
B ankers Association. W e enjoy A ssociation
activities an d county, group a n d state m eetings.
O ur officers look forw ard to our 1940 State
C onvention this m onth for the ren ew al of old
friendships an d to participate in A ssociation
work.

LIV ESTO C K

•
of th e m ost successful banks in th a t
p a rt of N ebraska.

A t Ashland
C. N. T u rn e r is now located at A sh
land. Mr. T u rn er, w ho w as form erly
engaged in banking business at M ar
quette, N ebraska, later going to Sew
ard, has been nam ed as cashier of the
Citizens N ational B ank of A shland.

Stock Dividend
T he board of directors of The F irs t
N ational B ank of Chicago, a t a recent
m eeting, declared a special dividend
of one share of T he Middle W est Cor
poration stock in kind, on each share
of F irs t N ational B ank stock. The div
idend is payable S eptem ber 3, 1940, to
stockholders of record at the close of
business on A ugust 23, 1940.
E d w ard E. B row n, th e president of
th e bank, follow ing th e m eeting, stated
th a t th e 300,000 sh ares so declared as
a dividend are p a rt of a total holding
of 506,978 shares of Middle W est stock
now ow ned by th e bank, alm ost all of
w hich w as acquired in settlem en t of
claim s ag ain st th e old Middle W est
U tilities Com pany at th e tim e of its
reorganization, and th e balance in
satisfaction of o th er debts due the
bank. Mr. B row n said th a t u n d er the
Public U tility H olding Com pany Act of
1935 th e holder of m ore th a n ten per
cent of th e stock of an u tility com pany
is defined as a holding com pany sub
ject to th e jurisd ictio n of th e Securi
ties E xchange Commission. A lthough
th e com m ission by reg u latio n has
heretofore g ran ted exem ptions from
the holding com pany provisions in
th e case of banks w hich, like The F irs t
N ational Bank, had acquired th eir
stock in settlem en t of debts, th e di
rectors of th e b ank th o u g h t it desir
able th a t its holdings of Middle W est
stock be reduced. In view of th e con
dition of th e secu rity m arkets, w hich
m akes it im possible a t th is tim e, in
th e opinion of th e bank, to sell such
a large block of stock a t its in 
trin sic value, th e directors decided to
declare th is special dividend.
Mr. B row n stated th a t the b a n k ’s
su rp lu s and undivided profits w ould
not be affected by th is dividend inas
m uch as an am ount, equivalent to th e
cost of th e 300,000 shares has been
tra n sfe rre d from reserves to u n d i
vided profits.

Slow
S io u x City, Iowa
M em ber F e d e ra l D ep o sit In s u r a n c e C orporation

N orthw estern B anker Septem ber 1940

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

N ight W atchm an: “Young m an, are
you going to kiss th a t girl?”
Young Man: “No.”
N.W.: “H ere then, hold th is lan 
te rn .”

47

SOUTH
D A K O T A
NEW S
G E O R G E M. S T A R R IN G
S ecreta ry -T rea su rer
H u ro n

F. F. P H IL L IP P I
P r e s id e n t
M ilb ank

Clearing House Meets
T he L ake Region C learing H ouse
A ssociation m et in th e F irs t N ational
B ank building in B ritto n to ta lk over
problem s w hich come before th e
v ario u s m em bers. Sixteen w ere p re s
e n t from P ierp o n t, L angford, W eb
ster, Roslyn, F o rm an , C larem ont,
Veblen, E d en and A berdeen. C lare
m o n t an d H ecla, n o t m em bers p re 
viously, w ere ta k e n into th e organiza
tion.
A m ong th e various topics up for dis
cussion w as th a t of h an d lin g gov ern 
m en t g rain loans and it w as decided
th a t th e m em ber b an k s w ould tak e
th em a t IV2 p er cent, plus a fee of
$1.00.
T he follow ing officers w ere elected:
P resid en t, O. R. Skola, Eden; vice
presid en t, J. J. W ark en tin , B ritton;
secretary -treasu rer, R oger W illiam s,
Langford.

Final Dividend
N otices have been m ailed to deposi
to rs of th e Volin State B ank th a t the
final dividend checks are read y for
d istrib u tio n upon p re se n ta tio n of th e
claim certificates issued w h en the
b an k closed.
T he final dividend re p re se n ts 3.9
p e r cen t of th e $185,000 on deposit
w h en th e b an k closed in Septem ber,
1931. T he am o u n t of dividends to
be d istrib u te d to depositors is ap p ro x i
m ately $5,600. P rev io u s to th is final
dividend, o th er dividends to talin g 20
p er cent, w ere declared.

Heads Bank Group

d en t of th e Sioux F alls C hapter of
th e A m erican In stitu te of B anking,
along w ith o th er ch ap ter officers and
com m ittee chairm en, are busy organ
izing classes for th e com ing y ear and
announce th a t Econom ics II and T ru st
B usiness, T ru sts I, w ill be th e tw o
courses offered stu d en ts enrolling for
th e season 1940-41.
In stru c to rs for last y e a r’s classes
w ill again conduct w ork in th e ir re 
spective fields: Clarence R. Beck,
of W ashington high school, in stru c t
ing th e economics class and P. H. Mc
Dowell, vice p resid en t and tru s t of
ficer of th e N o rth w est S ecurity N a
tional B ank of Sioux Falls, tu to rin g
th e tru s t business group.
I t has been the custom of th e local
c h ap ter to hold its com m encem ent ex
ercises in early Septem ber each year
and plans are u n d er w ay for th is
y e a r’s com m encem ent a t w hich tim e
diplom as w ill be presen ted to stu d en ts
w ho have successfully com pleted the
req u ired n u m ber of courses.
T he m eeting room s of th e local
c h ap ter are in th e N o rth w est Se
c u rity N ational B ank building and
th e classes w ill again be conducted on
W ednesday and T h u rsd ay evening of
each w eek for tw enty-eight weeks.
Miss C hristina M ueller rep resen ted
th e Sioux F alls ch ap ter as its official
delegate a t th e n ational convention
held a t B oston last June. The n a
tional organization has selected San
F rancisco for its m eeting place for its
n ex t y e a r’s convention.

Bank Closed

E.
A. E ystad, of th e S ecurity State T he B adger S tate B ank w as closed
Bank, W akonda, w as nam ed p resid en t recently by th e state banking d e p a rt
of th e B an k ers A ssociation of th e m ent. T he late A ndrew N elsen w as
so u th e a ste rn d istric t in a m eeting of p resident; P e te r Pedersen, vice p resi
d irecto rs in V erm illion. P lan s w ere dent; Louie H orstad, cashier; and Mrs.
m ade to hold a m eeting of th e asso F ra n k C arpenter, a ssistan t cashier.
ciation in th e C enterville p a rk last
Sixtieth Anniversary
m onth.
Mr. and Mrs. W. D. M orris, Sr., con
tin u o u s resid en ts of W aterto w n since
Organizing Classes
O rville B onacker, of th e F irs t N a th ey m oved th e re in 1885, quietly ob
tio n al B ank an d T ru s t Com pany, served th e ir six tieth w edding an n i
Sioux Falls, South D akota, and p resi v ersary recently.

W hen th ey first resided in W atertow n it w as b u t a sm all city of about
3,000 population. Mr. M orris, 84, and
Mrs. M orris, 86, have m aintained a
keen and a lert outlook on life as th ey
particip ated in th e city’s steady
grow th to a th riv in g com m unity.
Mr. M orris, w ho has been a long
tim e m em ber of th e E lk s Lodge, or
ganized the C itizen’s N ational B ank
in W atertow n in 1885. The first p resi
dent of th e organization w as A. D.
Leet, an uncle of Mr. M orris. In the
late nineties Mr. L eet died and w as
replaced as presid en t by Mr. M orris.
Mr. M orris retain ed th e position as
head of th e in stitu tio n u n til about
1929 w hen his son, Lorenzo T. M orris,
took over th e presidency.
S hortly
afte r th e consolidation of the Citizens
N ational and th e F irs t N ational banks,
Mr. M orris replaced H. D. W alrath,
w ho died soon afte r tak in g office, as
ch airm an of th e board of directors.

Kimball Meeting
The reg u lar A ugust m eeting of the
directors of th e B ank of K im ball w as
held at Kim ball. T he directors in a t
tendance at th e m eeting w ere M. P lin
Beebe and Lloyd Cronholm of Ips
wich, L. M. L arsen of W essington
Springs, Mrs. J. H. D rips of G ann V al
ley, and R. A. Johnson of Kim ball.
E rn e st Beebe of Florida, w ho is
visiting his p arents, Mr. and Mrs. M.
P lin Beebe at Ipsw ich, also attended
th e m eeting.

Making Progress
The F a rm e rs and M erchants B ank
of W aterto w n last m onth celebrated
th e ir fifth y ear as a W aterto w n b an k 
ing house.
F ro m deposits of $242,918.42 on
Decem ber 31, 1935, five m onths after
opening th e ir institu tio n , has grow n
u n til th e deposits on Ju n e 30, 1940,
totaled $981,930.30, or n early a m illion
dollars.
Officers, Jo h n H. H anten, chairm an;
L. H. Loken, vice president; S tew art
B. C rothers, cashier; and C. O. Roggem an, a ssistan t cashier, are W atertow n
m en and H. K opperud, president,
m akes his hom e at Lake P resto n
w here he operates an o th er bank.

Moved to Armour
D. H. Ew ing, w ho is em ployed by
th e N ational F ederal L and B ank and
has been stationed at Geddes, m oved
to A rm our recen tly to m ake his head
q u arters.

Deadwood in 1941
T he executive council of th e South
D akota B ankers A ssociation has set
Ju n e 26th and 27th as dates for th e
Northwestern Banker Septem ber 19k0


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

48
1941 convention, it w as announced
by Geo. M. Starring, th e association
secretary. T he 1941 convention w ill
be held at Deadwood.

Sioux Falls Clearings

G haracter and reputation, tra
dition and precedent, strength
and experience, — these are
intangible but forceful reasons
for the maintenance of bank
relationships.
Yet even these will lose their
appeal to hard business judg
ment unless supported by a
record of e ffic ie n t service
consistently maintained.
We have been providing com
plete facilities for every cor
respondent bank need for more
than 136 years.

... THE ...

P H IL A D E L P H IA
NATIONAL BANK
O R G A N IZ E D 1803

PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$43,000,000
M e m b e r o f F e d e ra l D e p o s it In su ran ce C o r p o ra tio n

Northwestern Banker Septem ber ÍO'iO

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

B ank clearings for July, 1940,
show ed a gain of $385,123.73 over the
previous year, it w as revealed at th e
Sioux F alls clearing house in th e
N orthw est Security N ational Bank.
The b an k clearings for th e m onth ju st
concluded w ere $6,467,581.17 as against
$6,082,457.44 for the sim ilar m onth of
th e previous year.

M IN N E S O T A
N EW S
New Cashier
Carl O. Iekel has assum ed his duties
as cashier of th e F irs t S tate B ank of
Swanville.
Mr. Iekel, w ho replaces the la te r
W alter A. L in d q u ist as cashier, w as
tra n sfe rre d from th e P erh am State
B ank at P erham , M innesota. P revious
to his connection w ith th e P erh am
b an k he w as engaged in th e life in su r
ance business in St. Paul.

Large Attendance
W ith an unexpectedly large a tte n d 
ance of 85 b an k officials and th e ir
w ives rep resen tin g 15 n o rth e rn M in
nesota banks, th e N o rth C entral M in
nesota Regional C learing H ouse Asso
ciation’s an n u al m eeting w as held a t
R u ttg e r’s B irchm ont B each H otel in
Bemidji.
In charge of th e m eeting w hich fea
tu re d election of offices for th e com ing
y ears w as R etiring P resid en t C. J. Elsen peter of W alker. A ssociation offi
cials elected for th e com ing y ear w ere
president, R. W. S m ith of P a rk R ap
ids, vice p resid en t and cashier of th e
State B ank of P a rk Rapids; vice p resi
dent, W. J. Brow ne of W adena, p resi
den t of th e W adena County State
Bank; secretary -treasu rer, R. H. W ells
of Bem idji, cashier of th e F irs t N a
tional B ank of Bemidji.

Becomes Director
A lbert H eidelberger of D um ont w as
unanim ously elected as a d irector of
th e F irs t S tate B ank of W heaton at a
special m eeting of th e board of direc
tors.
H eidelberger fills th e vacancy cre
ated by th e death of Jo h n Zim brick,
w ho has been connected w ith th e ban k
m any years.

49

M IN N E S O T A
NEW S
W IL L IA M D U N C A N , J r.
S ecreta ry
M in n ea p o lis

K . O. S A T T R E
P r e s id e n t
B lu e E a rth

BRIEF

M IN N ESO TA

N EW S

B y J. S. H oaglund
R u ssell Lake, of Devils Lake, N o rth

D akota, has joined th e staff of th e
S tate B ank of Lake P ark , M innesota.
The F irst N ational B ank of Brecken rid g e is th e p ro u d possessor of a
n ew lighted electric clock, displayed
on th e fro n t of th e b an k building.
The F arm ers and M erchants B ank

of N ew Y ork Mills has recen tly u n 
dergone a com plete rem odeling in th e
in te rio r of th e in stitu tio n .
Floors
are of tiletex, new low-type counters
hav e been installed, and th e d irecto rs’
room h as been redeco rated in colors.
E. H. B u erkle, cashier of th e F a rm 

e rs and M erchants, also advises th a t
h is b an k helped to sponsor a m odern
sales pavilion in New Y ork Mills.
T he stru c tu re has a seating capacity
of 500, and is h eated for w in te r use.
Cost w as about $2,000.
M iss M eryle B arney, bookkeeper at

th e S tate B ank of Anoka, w as m a r
rie d recen tly to L eland Sorterberg.
T h e couple is residing in A noka a fte r
a brief honeym oon. P aul C. Heard,
cash ier of th e S tate B ank, has re 
tu rn e d from a vacation trip dow n
E ast, w h ere he atten d ed th e New
Y ord fair, and sp en t som e tim e to u r
ing th e N ew E n g lan d states.
The State B ank of Long L ake last
m o n th celebrated its 35th an n iv ersary .
The occasion w as com m em orated by
th e b an k in a gift to its custom ers and
friends. K. W . B olhum , cashier of th e
bank, has been w ith th e in stitu tio n for
th e p ast 26 years.

w hich has recen tly com pleted rem od
eling and re a rra n g em e n t of its in te
rior. T he floor plan w as changed in
th a t executive desks are now at the
re a r of th e b an king room. New low
counters w ere installed.
A n u m ber of changes in officers are
rep o rted at th e F irs t N ational B ank of
Deerwood. F. W . S chw anke, p resi
dent, and A. N ew strom , cashier, re 
m ain th e same. G. A. Oldberg is a new
vice p resid en t of th e bank, and E. N.
Skone, also a vice president, has been
m ade a director and is active in the
bank. Mr. Schw anke is devoting a
large p a rt of his tim e tow ard his reelection as rep resen tativ e a t large.

Elected Cashier
G. P. B aum an of H oskins, N ebraska,
w as elected cashier of th e E llsw o rth
State Bank, E llsw orth, and assum ed
his duties A ugust 15. He tak es the
place of H. G. R ostom ily, w ho has
o th er plans. Mr. B aum an w as cashier
of th is b an k several y ears ago, b u t
re tu rn e d to N ebraska in th e spring of
1939 to take care of th e in terests of
his father-in-law , w ho w as v ery ill
and w ho now has fully recovered. Mr.
B aum an is m arried and has one son,
K eith Gary, 5 y ears old.

Final Dividend
The sixth and final dividend has
been paid to depositors and creditors
of th e old State B ank of F ran k lin . A
to tal of 41.26 per cent w as paid to the
depositors.

Meet at Rushford

The annual m eeting of the S outh
eastern M innesota C learing H ouse As
sociation w as held a t th e F ern d ale
C ountry Club, R ushford, and w as a t
J. H. G rinnell, cashier of th e State
tended by about seventy bankers,
B an k of L oretto, took his v acation in th e ir w ives and friends, from th is sec
h is own state th is year, doing some tion of th e state. B anks in Fillm ore,
long-delayed fishing. He re p o rts he H ouston and W inona counties are
w as lucky and th e fish w ere biting.
m em bers of th is association, w hich in
•tu rn is a u n it of th e state association.
Preceding th e business session, v is
The F ir st N ational B ank of In te rn a 
tional F alls is an o th e r in stitu tio n iting m en played golf on th e beautiful

F erndale course, w hile th e ladies en 
joyed bridge. Follow ing the business
m eeting, a three-course d in n er w as
served to 68 people.
A t the business session, officers w ere
elected to act for th e com ing year. As
a re su lt of th is election, Jo h n Ambrosen, cashier of the W inona N ational &
Savings Bank, w as nam ed as th e new
president, succeeding R. E. Sprague
of Caledonia. Jo h n F risvold of R u sh 
ford, cashier of th e R ushford State
Bank, w as elected vice president, to
succeed Mr. A m brosen, and L. H.
B riggs of H ouston, w as nam ed secre
tary -treasu rer to succeed Mr. Frisvold.
D irectors for th e ensuing year are
E lvin H um ble of R ushford, re p re se n t
ing F illm ore county; E. A. H ighum of
Lew iston, rep resen tin g W inona coun
ty, and 0. E. B u rtn ess of Caledonia,
rep resen tin g H ouston county.
The nex t q u a rte rly m eeting of the
association w ill be held a t Spring Val
ley in Novem ber.

Domeier Resigns
H. C. D om eier has severed his con
nections as p resident of th e F irs t N a
tional Bank, New Ulm, according to
officials of th e bank. At a directors
m eeting, L. H. Ickler of th e A m erican
N ational B ank of St. P aul w as elected
president, to fill Mr. D om eler’s posi
tion. A lthough Mr. D om eier has been
p resid en t about a year, he has been
em ployed at the b an k for nearly th irty
years, and du rin g m uch of th a t tim e
w as th e cashier.

Clearing House Meets
L ast m onth about 150 bankers, th e ir
wives, em ployes and directors g a th 
ered a t D uke’s Place on Long Lake,
W atonw an county, for th e an n u al
m eeting of the Corn B elt C learing
house A ssociation, com prising coun
ties of M artin, Jackson, Cottonwood
and W atonw an.
A b an q u et a t 6:30 followed by danc
ing, card playing and a general social
get-together featu red th e e n te rta in 
m ent.
At th e business session th e following
officers and directors w ere elected for
th e ensuing year:
President, A rth u r J. P eterson, T ri
um ph S tate Bank, T rium ph; vice presi
dent; M. T. Laingen, Odin State Bank,
Odin; secretary -treasu rer, E. C. Joslyn,
F arm ers S tate Bank, Ormsby.
D irectors—M artin county, W. H.
N orm an, F a irm o n t N ational Bank,
F airm ont; Jackson county, W. T.
Payne, F a rm e rs State Bank, Lakefield;
Cottonw ood county, T. V. P eterson,
Citizens State Bank, W estbrook; W at
onw an county, J. Brogger, S tate B ank
of Butterfield.
N orthwestern Banker Septem ber 1940


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

50

• M I N N E S O T A
New Bank
The articles of incorp o ratio n for the
State B ank of H en d rick s w ere p u b 
lished recently.
T he b an k w ill be capitalized a t $25,000, w ith su rp lu s of $5,000 and u n d i
vided profits of $2,500, for a to tal of
$32,500.
T he board of directors w ill be J. W.
Siverson, J. M. R einen, Carl N. Trooien, K. e : H olian and M artin P. Digre.

Pioneer Dies
F u n e ra l services for J. H. E rickson,
74, Big Stone county pioneer m erch an t

NEWS*

and b a n k er w ho p u rchased and p latted
th e tow n site of Clinton in 1886, w ere
held recently.
F o r m any y ears E rickson w as vice
p resid en t of th e Clinton F irs t N ational
B ank, resigning in 1926. D uring his
long residence in Clinton, he h ad held
m an y public offices.

At Green Lake
T he Tri-County B ankers A ssociation,
com prising ban k ers of K andiyohi, R en
ville and M eeker counties, held th e ir
an n u al sum m er m eeting a t Green
Lake, followed by a banquet. Seventy-

five b an k ers and th e ir w ives w ere in
attendance.
Officers elected a t th e m eeting are
A. E. Pfiffner of Litchfield, president;
W. E. B erglund of Pennock, vice p resi
dent; A. G. Siew ert of Sacred H eart,
secretary and treasu rer.
A t the banquet, w hich w as presided
over by T. G. O’Connor of Renville,
Don H utson of th e M inneapolis F ed 
eral R eserve B ank spoke, as did F. A.
A m undson of St. Paul, com m issioner
of banks of M innesota, an d W illiam
D uncan of M inneapolis, secretary of
th e M innesota B ankers A ssociation.

Remodeled

Your customer wants liis money quickly

And We Can Help You Get it for Him

One o f th e ways in w hich the F irst
of M inneapolis can help you help y our custom ers is th rough its
collection service. M aintaining deposit connections w ith banks
in 40 cities located on m ajor air lines th ro u g h o u t the c o u n try ,

R em odeling operations carried on
p resen ts an a ttractiv e in terio r to th e
custom ers a t th e A lexandria State
Bank.
All of th e p artitio n s and iron grill
w ork w hich sep arated th e v au lts and
office section of th e b an k from th e
lobby section w ere to rn out and re 
placed w ith sh o rt w hite oak wood p an 
els. In stead of b an k em ployes being
able to service p atro n s th ro u g h m etal
grilled w indow s, th e new arran g em en t
provides open sections w hich add to
th e convenience and efficiency of busi
ness operations.
Besides replacing th e counters in
th e bank, new linoleum w ill be in 
stalled th ro u g h o u t th e b an k offices.
Also included in th e rem odeling plans
w ill be th e addition of new lighting
fixtures th ro u g h o u t th e bank.

we use a ir m ail w ith m ore th an average frequency and faster
th an average retu rn s. On item s collectible e ith e r here in the
city o r anyw here else, o u r aim is to make the money available
to the customer in the shortest possible time. Y our custom ers
w ill like th e collection service you can give them th ro u g h the
F irst of M inneapolis.

F i r s t N a t io n a l

z s s x ,T r r M in n e a p o l is

Member Federal Deposit Insurance Corporation

attment
M. O. Crangaard
Vice P resid ent

and ^yanketi-

C. B. Brombach

W. A. Volkmann

A ssista n t Vice P resid en t

J. J. Maloney

A ssista n t Cashier

A ssista n t C ashier

B a n k A d v is o r y D iv is io n ,

Affiliated

with

f

i r

s

t

b a n k

Northwestern Banker Septem ber 19^0

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

K. T. Martin • J. M. Downes

s

t

o

c

k

c

o

r

p

o

r

a

t

i

o

n

At Blooming Prairie
T he reg u lar an n u al three-county
b an k ers m eeting w as held in Bloom
ing P ra irie recently. T he afternoon
p rogram w as held at th e C ountry Club,
and m em bers had d in n er a t th e Com
m u n ity Club B uilding.
P aul E v an s presided. N ew officers
elected were: W. P. Jones, M eriden,
president; C harles Spaulding, W aseca,
vice president, and J. E. H egstrom , St.
Jam es, secretary-treasurer.

Improvements
Im provem ents to th e in te rio r of the
F irs t N ational Bank, B audette, have
been made. The vestibule has been
to rn out so th a t m ore room for coun
te rs and w indow s could be obtained,
and th e re are now five w indow desks
for th e use of th e public. T he office at
th e fro n t has been m oved to th e rear,
and re a rra n g em e n t gives m uch m ore
space for th e business of th e bank, and
m akes it m ore convenient for th e pub
lic.

51
5

MEASURED
PROFIT
in
FEEDING
Lm p r o v e d fe e d in g m eth o d s are
m a k in g it p o ssib le to m ea su re m o re
a ccu rately th e p r o sp ectiv e p ro fits
fo r N orth w est cattle feed ers.
C onstant e x p e r im e n ts by a gri
cu ltu ra l c o lle g e s o f th e N orth w est
states and e x p e r ie n c e d fe ed ers in
th e search fo r b etter fe e d s, su p erio r
fe e d in g c o n d itio n s and im p ro v ed

stock h elp th e cattle fee d e r b etter
h is p r a c tic e s a n d in c r e a s e h is
p rofits.
T h e “ N orth w estern ” is a n x io u s
and w illin g to co o p erate w ith co r
resp o n d en t b an k s in ren d erin g a
co m p lete service fo r cattle feed er
loan s. W e are as n ear as you r te le 
p h o n e, telegrap h or typew riter.

N O RTH W ESTERN
BANK
B U IL D IN G -------3 0 ,0 0 0 p e o p le —
e n te r a n d le a v e th e N o rth w est»
e r n B a n k B u i ld in g e v e r y w o r k 
in g d a y . M a n y m o d e r a te s iz e d
M in n e s o ta to w n s c o n ta in fe w e r
p e o p le a n d le ss im p r o v e d r ea l
e s ta te th a n is r e p r e s e n te d b y
th is o n e “ C o m m u n ity

USE "N ORTH W ESTERN " SERVICES

Departm ent of Banks and Bankers
\Y m . N . J o h n s o n
V ice P re s id e n t

F . \Y . C o n ra d
A sst. Vice P res.

D . E . C r o u le y
Asst. C a sh ier

L . P . G isv o ld
A ssistant C a sh ier

N O R T H W E S T E R N N A T IO N A L B A N K
AND TRUST COM PANY
M ARQUETTE

AVENUE:

6T H

TO

7TH

STREET

•

M EM BER

FEDERAL

D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

Northwestern Banker Septem ber 1940*

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

T w i n C ity N e w s

ROMOTIONS involving four m en
P
w ere announced by F irs t N ational
B ank & T ru s t Com pany and its affil
iate, H ennepin State Bank, follow ing
m eetings of th e d irectors of th e two
institutions.
E lm er Lindborg, chief clerk at
F ir s t’s St.' A n thony F alls office since
1931, w as nam ed a ssista n t m anager
there. H is association th e re dates
back to 1917. W illiam E. N eudeck and
E d w in R. W istran d w ere re-elected
m anag er and a ssista n t m anager, re 
spectively.
W alter H. F afro, cashier a t H en n e
pin State B ank since N ovem ber, 1939,
w as m ade a ssista n t m an ag er of F irs t
N atio n al’s W est B roadw ay office, w ith
C. G. H aberland re-elected m an ag er
and F. R. Sleavin a ssista n t m anager.
Mr. F afro w as a ssista n t m an ag er a t
th e N o rth Side office of F irs t N ational
prio r to going to H en n ep in State.

By Jam es M. Sutherland
Special Correspon dent

To succeed Mr. Fafro, directors of
H ennepin State advanced R. V. H agen
from a ssistan t cashier to cashier and
m ade D onald W . M cGregor a ssistan t
cashier. H agan has been associated
w ith th e b ank since 1929, w hile Mc
G regor has served in various banks of
th e F irs t N ational group for a sim ilar
period.
F o u r m em bers of th e M inneapolis
Chapter, A m erican In stitu te of B ank
ing, have been assigned to national
com m ittee of th e A.I.B. T hey are:
G enevieve M. N evin , N orthw est Bancorporation, to th e national d ep art
m e n t conference com m ittee; M ildred

Bankers Deserve the Best
and w hen it com es to A ccident and H e a lth In su ran ce they are entitled
to the low est of cost.
Y ou can get b o th in the policies of the “ M in n eso ta” w hich has served
b ank officers and clerks fo r thirty-five years of successful operation.
$2.00 pays for eith er H e a lth or A ccident In su ran ce in full to the m iddle
of n ex t M arch. D o n ’t be w ith o u t pro tectio n . Send for application
and literatu re to

PA U L CLEM ENT, Secretary

M I N N E S O T A C O M M E R C I A L M E N ’S
A S S O C IA T IO N
2550 Pillsbury Ave.

Northwestern Banker Septem ber 1940

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

Minneapolis, Minnesota

V. Olson, F irs t N ational B ank & T ru st
Company, w om en’s com m ittee; E v e 
lyn G. Sw anson, M arquette N ational
Bank, publicity com m ittee, and F.
M ariner Clark, F ed eral R eserve Bank,
debate com m ittee.
F o rm erly a South D akota corpora
tion, B ank Shares C orporation has in 
corporated u n d er M innesota law s and
changed its nam e to Bank Shares, Inc.
The com pany operates M arquette
N ational, Chicago Lake and U niversity
State B anks, all in M inneapolis. Of
ficers and operation continue as be
fore, according to Ralph W. M anuel,
presid en t of B ank Shares and of M ar
q uette N ational.
It w as “ju s t a n o th er d ay” for C. T.
Jaffray recen tly w hen he passed his
seventy-fifth b irth d ay . So th e p resi
dent of F irs t B ank Stock C orporation,
ch airm an of th e Soo L ine and form er
presid en t of F irs t N ational B ank &
T ru st Company, sp en t th e day at his
desk—w orking.
Two new directors have been elected
by F idelity S tate Bank, M inneapolis,
according to V. E. M ikkelson, p resi
dent. T hey are George H art, m er
chant, and H erbert C. J. Olson, asso
ciated w ith th e b an k for 20 years and
its p resen t cashier.
The M innesota B ankers A ssociation
w ill hold its fifty-second an n u al con
vention Ju n e 11 to 13, 1941, in St.
Paul, according to W illiam D uncan,
Jr., secretary.
Five m em bers of th e M inneapolis
sales organization of Inv esto rs Syn
dicate, Inc., have been prom oted.
J. R. R idgw ay, Jr., agency m anager,
now is a ssistan t to K ing M erritt, vice
p resid en t and general sales m anager.
Mr. R idgw ay also is an a ssistan t vice
presid en t and director of th e firm.

53

• M I N N
P aul J. K oughan, associate division
al m an ag er w ith th e late George C.
Young, is now divisional m an ag er for
M innesota, N o rth D akota, South Da
k ota and n o rth e rn M ichigan.
Mark G. S kin ner has been m ade as
sista n t divisional m an ag er u n d e r Mr.
K oughan, w hile Jam es S. L ane and
Clifford L. Oman have been nam ed
agency m anagers for th e T w in Cities.

T w in City Bond T rad ers Club staged
a m ost successful a n n u a l g uest and
field day at th e M inneapolis Golf Club.
Joyce S. F inrud, F irs t N ational B ank
& T ru s t Com pany, M inneapolis, w as
ch airm an of th e com m ittee in charge,
assisted by A rthur Rand of W oodardE lw ood & Com pany, M inneapolis, and
W illiam H ow ard, J. M. D ain & Com
pany, M inneapolis. A. N. P lu m ley of
F irs t N ational is club president.
W illiam A. D urst, 69, ch airm an of

th e executive com m ittee of N o rth w est
e rn N ational B ank & T ru st Com pany

E S O T A

N E W S -

and chairm an of th e governing com
m ittee of N o rth w est B ancorporation,
died A ugust 19 at Tw in Falls, Idaho,
w hile on a vacation trip.
One of th e n a tio n ’s o u tstanding
b ankers, he had exercised outstanding
influence in shaping th e financial pol
icies of th e b ank for 30 y ears and of
th e b an k holding com pany since its
founding.
B orn in M onroe, W isconsin, he came
to M inneapolis w hen 17 y ears old and
secured a position as bookkeeper w ith
th e M innesota Loan and T ru st Com
pany. W inning various prom otions,
he finally w as m ade presid en t in 1918.
F rom th e n u n til its consolidation w ith
N o rth w estern N ational B ank in 1934
he retain ed th e presidency.
W ith th e m erger, he becam e ch air
m an of th e executive com m ittee.
Mr. D u rst w as active in num erous
civic m atters. D uring th e W orld w ar
he w as a m em ber of th e capital issue
com m ittee for th e N inth F ed eral Re
serve district.

D irectors of F ir st B ank Stock Cor
poration, m eeting in M inneapolis, have
voted to pay a dividend of 30 cents a
sh are October 1 to stockholders of rec
ord Septem ber 16. A dividend of 30
cents w as paid A pril 1, 1940, and one
of 25 cents w as paid October 1, 1939.
S. H. F in g er has been tra n sfe rre d
from th e credit d ep artm en t of F irs t
Service C orporation, M inneapolis, to
the M erchants N ational B ank & T ru st
Company, Fargo.

FACING THE FORTIES
T w o Q u estio n s T h o u g h tfu l
L ife A gents A re A sk in g :
1. W i ll th e 1940's o ffe r m e o p p o rtu n i
t ie s fo r a s u c c e s s f u l c a r e e r in lif e
in s u r a n c e s e llin g ?
2.

W i ll m y c o m p e n s a t io n a c c u r a t e ly
r e fle c t th e v a lu e of m y s e r v ic e s to
m y p o lic y h o ld e r s a n d m y c o m 
pany?

•

Eleventh Annual Gladiolus Show

P ic tu re d above are p a rt of th e thousands of en th u siastic am ateu r and professional g lad 
iolus grow ers who view ed th e E lev en th A nnual Show of the M innesota Gladiolus Society,
held A ugust 19 an d 20 in the m ain lobby of the F irs t N atio n al B ank of S ain t P aul.
A djudged G rand Champion of th e show from am ong more th a n 10,000 in d iv id u al bloom
ing sta lk s w as “ Queen M a ry ” , a m agnificent lavender and cream bloom grow n b y E. J.
F ly n n of W innipeg. The F irs t N atio n al B an k tro p h y fo r th e most o u tstan d in g ex h ib it
w as aw arded to A rth u r C. K oerner of G rey Cloud Island, M innesota, fo r his strik in g
display of m in iatu re “ g la d s ” .

T he d e c a d e of th e 1940's w ill s u r e ly b e a
fa tefu l o n e , im p o sin g n e w a n d h e a v ie r re
s p o n s ib ilitie s on b u s in e s s m a n a g e m e n t, n e w
te s ts of a b ility to surm oun t a d v e r s ity .
Life in s u r a n c e h a s w e a t h e r e d m a n y d e p r e s 
s io n s , w a r s , a n d e p id e m ic s . A lw a y s it h a s
e m e r g e d sa fe ly ; g r o w n stro n g er a n d b etter
a b le to s e r v e . T he s o u n d n e s s of its fu n d a 
m en ta l p r in c ip le s, th e sk ill a n d in te g r ity of
its m a n a g e m e n t a r e , of c o u r s e , p rim a rily re
s p o n s ib le .
But of im p o rta n ce , to o , is th e
fa ct th at o u t b u s in e s s , lik e a tru e D e m o c 
r a c y , e n jo y s free e x c h a n g e of id e a s a n d o p e n
d is c u s s io n of its p ro b lem s w ith in th e ran k s of
th e m a n y fin e o r g a n iz a tio n s w h ic h s e r v e th e
in d u stry , e a c h c o n c e r n e d w ith its o w n p a rtic
u la r p h a s e of th e b u s in e s s .
O r g a n iza tio n s
s u c h a s th e N a tio n a l A ss o c ia tio n of Life U n
d erw rite rs (w h ic h w ill h o ld its y e a r ly c o n 
c la v e in P h ila d e lp h ia th is m on th) s e r v e a s
g r e a t n a tio n a l forum s in w h ic h n e w id e a s a r e
e s p o u s e d a n d o ld o n e s s u b je c te d to th e te s ts
of c o n tin u o u s d e b a te .
A nd th e y afford a
w o r th -w h ile ch e c k on p r o g r e s s iv e id e a s in 
tr o d u c e d b y co m p a n y m a n a g e m e n ts .
N e v er h a s d is c u s s io n in life in s u r a n c e
c ir c le s b e e n franker a n d m o re r e a lis tic th a n
it is to d a y . N e v er h a v e p r o g r e ss iv e id e a s
b e e n m ore fa v o r a b ly r e c e iv e d th a n b y to 
d a y 's le a d e r s in fie ld a n d h o m e o ffice. The
q u e stio n s p o s e d a b o v e w ill b e a n sw e r e d w ith
a v ig o r o u s affirm ative b y a ll fie ld m en w h o
k n o w th e life in su r a n c e trad ition of fa c in g
p ro b lem s c o u r a g e o u s ly , a n d s o lv in g th em
w is e ly .
N w N L w ill d o its part; it p le d g e s s te a d fa s t
a d h e r e n c e to its p rim ary ru le— " n o co m p ro 
m is e w ith s e c u r ity , for p o lic y h o ld e r or for
a g e n t " — a n d c o n tin u e d e m p h a sis o n c o m p e n 
sa tio n m eth o d s th a t in c r e a s e th e a g e n t 's rate
of co m p e n sa tio n a s h e im p ro v e s th e q u a lity
of th e s e r v ic e h e re n d er s— m eth o d s th at m e e t
th e a g e n t 's p r e s s in g n e e d a n d k e e p p a c e
w ith th e b u y e r 's d e m a n d s for m o re efficien t
life in s u r a n c e se r v ic e .

No r t h w e s t e r n
N a t i o n a l LIFE
INSURANCE
COMPANY
O . J . A r n o ld , P r e s id e n t

M in n e a p o lis , M in n e s o ta

Northwestern Banker Septem ber 1940

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Federal Reserve Bank of St. Louis

54

NORTH
M A R T IN A A S
P r e sid e n t
N e w R ock ford

D A K O T A
NEW S

The State Treasury
N o rth D akota’s tre a su ry show ed a
to tal cash balance on h and of $8,148,991 on Ju n e 30, 1940, or $532,870 m ore
th a n th e $7,616,121 on h an d a y ear
ago, S tate T re a su re r Jo h n Om land
rep o rted recently.
The cash balance in th e g eneral
fu n d w as $878,438 as com pared w ith
$342,849 a y ear ago, b u t p a rt of th is
$535,589 increase w as due to th e fact
th a t sales ta x receipts w en t into th e
g eneral fund in stead of a special fund
because of an act of th e 1939 legis
latu re. T hey go back into a special
fund now, how ever, follow ing passage
of an in itial m easu re a t th e Ju n e 25th
prim ary.
P a rt of th e increase in th e g eneral
fund, how ever, is due to th e increased

C. C. W A T T A M
S ecreta ry
F argo

ta x collections, C. H. Lincoln, deputy
state treasu rer, declared. T otal col
lections for the general fund during
th e p ast y ear totaled $8,108,922 w hile
paym ents out of th is fund totaled
$7,573,332. T hus th e difference, plus
th e balance on han d Ju n e 30, 1939,
leaves the balance on h and Ju n e 30,
1940, of $878,438.
Sales of certificates of indebted
ness, proceeds of w hich w en t into the
gen eral fund, totaled $433,000 during
th is period. These are issued against
uncollected taxes. The previous year,
how ever, $1,525,000 of certificates of
indebtedness had to be issued to keep
enough cash on J ia n d to m eet the
s ta te ’s obligations .
Real p ro p erty taxes w hich w ent
into th e general fund du rin g th e past

year totaled $920,411 com pared w ith
$767,248 collected du rin g th e previous
year.
O ther m ajor item s in th e general
fund collections were: beer com m is
sioner $555,948 com pared w ith $552,724 in the previous year; cigarette
stam p tax revenue $510,345 com pared
w ith $498,813; incom e tax $588,636
com pared w ith $419,146; and $2,690,000 from th e retail sales tax. T he re 
tail sales tax th e previous year w as
not tra n sfe rre d to th e general fund.
H ow ever, th e rep o rt shows total
sales tax collections for th e year end
ing Ju n e 30, 1940, of $3,098,851 com
pared w ith sales tax collections the
previous year of $2,750,572. Of th e
$3,098,851 collections, $2,690,000 w ere
tra n sfe rre d to th e general fund.

New Cashier
G.
A. R uana, form erly of Heil, is
new cashier of th e F irs t State B ank
of New Leipzig. He succeeds E. P.
D anelenko, w ho resigned recently.
Mr. R uana has m ade his hom e in Cal
ifornia for th e p ast six years, b u t
p rio r to th a t w as cashier of th e F a rm 
ers State B ank a t Heil.
Mr. D anelenko has gone to Billings,
M ontana, w here he has accepted a po
sition w ith a credit com pany.

Killed in Accident

THE

TRAVEL TREND

A

In ju re d fatally w hen the car in
w hich he w as trav elin g w ith a friend,
collided w ith a tra in a t Bellingham ,
M innesota, H en ry Leum , p rom inent
citizen of th e M ayville com m unity,
died in a hospital at M adison, M inne
sota. Mr. L eum suffered from a skull
fractu re and died w ith in tw o hours
of th e accident.
He w as financially in terested in the
Goose R iver Bank, serving as its p resi
den t for th e p ast several years. He
w as a large landholder in this com m u
nity. A m em ber of the M ayville L u
th e ra n church, he had held offices
in th a t congregation for years.

Loan Payments

V

Northwestern Banker Septem ber 1940

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Federal Reserve Bank of St. Louis

AVord has been received by H a rry
Lord, secretary -treasu rer of th e Cando N ational F a rm L oan Association,
th a t th e organization has been a u th o r
ized to receive paym ents for all loans
m ade th ro u g h th a t association. Bor
row ers in th e association are being
notified to get in touch w ith Mr. Lord
and tra n sa c t such business as m ay
arise in connection w ith th e ir loans.
T his servicing agreem ent w ill con
tin u e u n til such a tim e as o th er notice
is given by e ith er th e F ed eral L and
B ank or th e local association.

55

M O N TAN A

NEW S

E T H EL W. W ALKER
S ecreta ry -T rea su rer
H e len a

R . D . M O U N T A IN
P r e s id e n t
C onrad

Remodeling
Com plete m odernization of th e R ich
lan d N ational Bank, Sidney, is now
u n d e r w ay. Old-style cages w ill be
cu t down, th e side door w ill be bricked
up p a rt w ay and converted into a w in 
dow to conform to others, a new fro n t
w ill be built, including new entrance,
d ire c to rs’ and adjoining room s in th e
re a r w ill be opened up into one large
bookkeeping room . The b asem en t is
being im proved for in stallatio n of a
v a u lt and th e m ain floor v a u lt is being
enlarged an d additional safe deposit
boxes installed. T he office of P re si
d en t Axel N elson w ill be m oved to th e
sam e space on th e opposite side of th e
building to conform w ith th e o th er
changes.

home. B oth attem p ted to sw im to
shore, th e n trie d to re tu rn to th e boat.
The second m an succeeded and later
w as rescued, b u t young W oodard sank
in 100 feet of w ater, in view of several
p ersons on the shore, pow erless to
help. A n excellent sw im m er and a r 
d ent sportsm an, Mr. W oodard is su r
vived by his parents, a sister and a
brother.

F. A . A . Convention
In te rp re tin g financial facilities to
th e public w ill absorb the atten tio n
of m ore th a n 500 m em bers of th e F i
nancial A dvertisers A ssociation for a
three-and-a-half day convention at Hot
Springs, V irginia, October 28th, 29th
and 30th, w hen th a t organization

m eets for its tw enty-fifth an n u al con
ference, according to Stephen H. Fifield, president. Mr. Fifield is vice
p resident of the B arn ett N ational
Bank, Jacksonville, Florida.
In announcing th e conclave, w hich
m arks a q u a rte r ce n tu ry of th e Asso
ciation’s activity, Mr. Fifield listed
four qualities w hich he says charac
terizes all F in ancial A dvertisers As
sociation conventions.
The annual
conferences are short, n ever m ore
th a n four days; th e first hour of each
day, beginning at 9:00 a. m., is de
voted to a school session attended
by all delegates and led by a national
a u th o rity touching upon advertising,
sales, or public relations; a com pre
hensive exhibit of c u rre n t financial
ad v ertising prep ared and displayed
by m em bers receives not only p ro 
gram attention, b u t is studied by the
m any financial ad v ertisin g m en and
w om en w ho attend; “ro u n t tab le” ses
sions on specific m erchandising and
public relations problem s are sched
uled each afternoon.
The 1940 convention com m ittee ap 
p ointm ents are com pleted, w ith Rob
e rt J. Izant, vice president, C entral
N ational B ank of Cleveland, serving
as general chairm an.

Clearings Increase
S ub stan tial increases in b an k clear
ings in n o rth w e st cities an d tow ns d u r
ing th e first seven m o n th s th is year
over th e corresponding period in 1939
indicate gen eral im provem ent in b u si
ness conditions.
In H elena, Ju ly clearings w ere $15,619,999, up from $14,298,484 in July,
1939. T h a t b ro u g h t th e seven-m onth
to tal to $95,972,657, a ju m p over th e
1939 figure for th a t p eriod of $84,219,643.

Experienced
L. A. C hristensen, new ly elected
p re sid e n t of th e F irs t State B ank of
Shelby, w as a W yom ing b an k exam 
in e r for tw o years; vice p re sid e n t of
th e th e S tate B an k of W heatland, W y
oming, five y ears w ith th e F a rm C redit
A dm in istration , th re e of th em as p re s
id en t of th e P ro d u ctio n C redit Corpo
ra tio n of Omaha.

Bankers Son Drowns
Jam es W. W oodard, 19, son of Jam es
D. W oodard, president, M etals B ank &
T ru s t Com pany, B utte, an d a com pan
ion w ere drow ned w h en a sm all sail
boat capsized a t th e W oodard sum m er

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EXPERIENCE
-QVALITYSERVICE

IO W A L IT H O G R A P H IN G C O
Edwin G . Ragsdale, Secy

DES MOINES

Northwestern Banker Septem ber 19W

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

56

I

S

E

R

V

I C

. ..

E

F R IE N D L Y
AND

N ALL its many years of active
service the Iowa Bankers Associa
tion has constantly sought to serve
both the state of Iowa and its member
banks on an equal basis. This is why
if has grown and prospered and we
extend kindest greetings to the Asso
ciation as we prepare for our annual
Convention this month in Des Moines.
In the same spirit of friendly fairness
the Waterloo Savings Bank serves its
many customers and correspondent
banks. We believe every transaction
should be constructive for both the
bank that is served and for the bank
that serves.
We cordially invite your Waterloo
account. Thirty-eight years of corre
spondent bank experience is available
at this institution.

F A IR !

Officers
H. G. N o r t h e y , President
R. W. W a it e , Vice President
C a r leto n S ia s , Vice President
J. J. M il l e r , Cashier
F. R. L a B arre , Asst. Cashier
V. S pa l d in g M il l e r , Asst. Cashier
O liv er J. S c h u t t e , Asst. Cashier

W A TER LO O SAVINGS B A N K
Waterloo, Iowa
M e m b er F e d e r a l D e p o s it In su r a n c e C o rp o ra tio n

Northwestern Banker Septem ber 1940

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Federal Reserve Bank of St. Louis

57

1940 Convention

Iow a Bankers
A ssociation
C . R. Gossett, President of the iowa Bankers
Association, Announces Program for
Annual Meeting in Des Moines
SEPTEMBER 8, 9, 10, I I

The Program
C. R. G O S S E T T

First Day
SU N D AY EV EN IN G , SEPTEM BER 8, 1940
Third Annual Meeting

Iowa Association of Bank Auditors
and Comptrollers
PROGRAM

P. M.
4:00 to 6:00 R eg istratio n and visiting,
Oak Room, M ain Floor, F o rt Des
M oines Hotel.
6:00 “D utch T re a t” S upper ($1.00 P er
plate) Oak Room, M ain Floor,
F o rt Des M oines Hotel.
7:00 M eeting called to order, B. P.
Olsen, auditor, M uscatine B ank
& T ru st Com pany, M uscatine;
presid en t, Iow a A ssociation of
B ank A uditors an d Com ptrollers.
(a) B rief com m ents.
(b) P re se n ta tio n of M em bers of
B oard of G overnors of th e
Association:
1. R. L. Carson, vice p resi
dent, A uditor, Iowa-Des
M oines N a t’l B ank &
T ru s t
Company,
Des
Moines.
2. C. R. Colton, secretarytre a su re r,
auditor,
F i
delity Savings Bank, Ot
tum w a.
3. E. H. K etelsen, auditor,
D avenport B ank & T ru st
Co., D avenport.
4. Ira L. H ays, cashier, City
N ational B ank, Council
Bluffs.

5. V. Spalding Miller, as
sista n t cashier, W aterloo
Savings Bank.
6. A rnold Boehm, cashier,
City State Bank, Ogden.
(c) A ppointm ent of N om inating
Committee.
Introductions, H. C. W inder, au 
ditor and a ssistan t cashier, Cen
tra l N ational B ank & T ru st Com
pany, Des Moines; p ast p resi
dent, Iow a A ssociation of B ank
A uditors & Com ptrollers.
SPEA K ER S

G reetings from P resid en t I. B.
A., C. R. Gossett, president, Iowa
B ankers Association; president,
S ecurity N ational Bank, Sioux
City.
“B ank M erchandising”, G. W.
M cSweeney, sales m anager, De
L uxe Check P rin te rs, Inc., Chi
cago.
“N ew W age and H our R egula
tions—th e ‘C onstant W age’ or
‘Tim e Of’ and ‘P rep ay m en t’
P la n s”, P h il R. C larkson, official
rep resen tativ e of th e W age &
H our D ivision of th e U. S. De
p a rtm e n t of Labor, Des Moines.
“A uditing of a P erso n al Loan
D ep artm en t”, A. G. Nelson, as
sistan t cashier, Security N ation
al Bank, Sioux City.
R eport of S ecretary-treasurer, C.
R. Colton, auditor, F idelity Sav-

ings Bank, O ttum w a; secretarytreasu rer, Iow a A ssociation of
B ank A uditors & Com ptrollers.
R eport of nom inating com m it
tee and election of officers and
governors of the association, B.
P. Olsen.
(a) U nfinished business.
(b) In tro d u ctio n of new officers
and governors.
F elicitations and adjournm ent,
R. L. Carson, auditor, Iowa-Des
Moines N at’l B ank & T ru st Com
pany, Des Moines; vice p resi
dent, Iow a A ssociation of B ank
A uditors & Com ptrollers.

Second Day
9:30 a. m.
M ON DAY, SEPTEM BER 9. 1940

Third Annual Meeting of the Iowa
"Junior Bankers"
South Ballroom, M azzanine Floor
Hotel Fort Des Moines
PROGRAM

A. M.
9:30 M eeting called to order, Dale
C. Sm ith, m anager, T ran sit De
p artm en t, C entral N ational B ank
& T ru st Company, Des Moines;
A ssociate Councilm an or H ead of
th e A. I. B. for Iow a to w hich
he w as appointed by the n a
tional officers of th e A. I. B.
M usical program , J e rry the
Sw edish Yodeling Cowboy, Zelda
Scott, Glen B urkland.
(T u rn to page 63, please)
N orthwestern Banker Septem ber 19^0


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

MOVING GOODS AND

■ .

U p p er L e ft— S p e ed y tra n sp o rt p la n es offei
b o a s t to c o a s t e a s t-w e s t se r v ic e ,, and soon
[w ill p ro v id e ra p id n o rth -so u th s e r v ic e for
b o t h m a il and p a ss e n g e r s, U p p er R ig h t—
[T rucks h a v e r a p id ly b eco m e on e o f th e
b ig g e s t fa c to r s in th e m o v e m e n t o f fr e ig h t
[w ithin th e s ta te , and b e tw e e n s ta te s . C en
t e r L e ft— P r iv a t e ly ow n ed ca r s are to d a y


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Federal Reserve Bank of St. Louis

PEOPLEWhen hundreds of Iowa bankers travel to Des Moines for
the state convention, they will patronize one of Iowa’s largest
industries — transportation — an industry which contributes
largely to Iowa employment as well as government.
Thirteen steam and 9 electric railroads— operating almost
10,000 miles of line in Iowa—alone show earnings within the
state of more than $90,000,000, with expenses, also within the
state, better than $75,000,000. Iowa operations are estimated
to employ 27,500 persons, earning about $50,000,000 a year.
Trucks, exclusive of farm owned, total more than 50,000,
providing employment for an estimated 60,000 persons, and
wages approaching the $100,000,000 mark. Delivery trucks,
drivers and the like, of course, appear in other industry classifi
cations, yet, they likewise belong to transportation.
Bus lines, with annual operating revenue in Iowa of more
than $2,000,000, employ approximately 400 people in the state.
Also directly connected with transportation are almost 4,000
car dealers and service garages and more than 6,000 gasoline
stations employing approximately 20,000 in sales, service and
mechanical work. It is estimated that Iowa will use 600,000,000 gallons of gasoline in 1940, better than four-fifths of
it in highway transportation.
A ir transport is a small employment factor in the industry,
yet Iowa is well served by an east-west mainline air operation
and soon is to have a major north-south line. The east-west
route is the oldest air mail route in the country, this month
celebrating its 20th Anniversary.
Transportation in Iowa, including rail, all forms of motor
transport, highway maintenance, motor car and truck sales
and service, and gasoline and oil distribution account for a
total employment of well above 100,000 persons, with wages
in the neighborhood of $180,000,000.
As well as providing big employment, transportation also
bears its part of state taxes. Iowa, in 1938, derived $25,567,000
from auto registration fees and gas taxes, 20.2 percent of the
total state income. Railways, terminal companies, and the
like pay Iowa taxes approximating $4,500,000.
Transportation is a foundation stone of Iowa and the nation.
It has made possible distribution of this state’s vast agricultural
wealth, and importation of the vast amount of manufactured
products Iowa needs. Only a progressive outlook could have
developed such a vast industry to so ably serve so many people.
Just as progressive transportation has become one foundation
stone of both state and nation, so has progressive banking serv
ice, such as that rendered by Bankers Trust Company, been a
big factor in this development. Bankers Trust is proud to
serve so many Iowa banks as Des Moines correspondent.

B A N K I'.R S T R U S T

6th and Locust Streets
f AIV 1.3 A Ak
Des Moines, Iowa V_MV_^ V J_ A 1%. X \| A
Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

Member Federal Deserve System

Convention
Committee
Chairman
FRED

M . M O R R ISO N
P r e sid e n t
V a lle y S a v in g s B ank
G eneral C hairm an

R IC H A R D R. R O L L I N S
V ic e P r e sid e n t
B a n k ers T r u st C om pan y
C hairm an E n te r ta in m e n t and G o lf C o m m ittee

J.

RO Y CAPPS
C a sh ier
C en tral N a tio n a l B an k
C hairm an A u to m o b ile C o m m ittee

F R A N K R. W A R D E N
V ic e P r e sid e n t
C en tral N a tio n a l B ank
C hairm an P u b lic ity C o m m ittee

G E O R G E W . R IC H T E R
V ic e P r e s id e n t
C a p ita l C ity S ta te B an k
C hairm an B a d g e C o m m ittee


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Federal Reserve Bank of St. Louis

R. L . C H A S E , JR .
A s s is ta n t V ic e P r e sid e n t
lo w a - D e s M o in e s N a tio n a l B a n k
C hairm an H o te l C o m m ittee

C. W . M E S S M E R
V ic e P r e s id e n t
B a n k ers T ru st C om pan y
C hairm an R e g is tr a tio n C o m m ittee

61

T H €

O f f l C É R S

Y
invite you

l o w f ì BfìnneRS fìssn.
converm on
S€PT€mB€R 9-11
Frederick M. Morrison, President
Winfield W. Scott, Vice President
J. R. Astley, Cashier
Edward P. Kautzky, Assistant Vice President
Marvin L. Payne, Assistant Cashier
Frank M. Thompson, Assistant Cashier

M EM BER

FED ER A L

D E P O S IT

IN S U R A N C E C O R P .

Northwestern Banker Septem ber 1940

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

62

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M em ber— F e d e ra l D eposit In su ra n c e C orporation

Northwestern Banker Septem ber 19W

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

M em ber— F e d e ra l R e serv e System

63

P R O G R A M IO W A
C O N V E N T IO N
(C ontinued from page 57)
A W ord of W elcome, C. R. Gos
sett, president, Security N ation
al B ank, Sioux City; president,
Iow a B an k ers A ssociation.
“O bservations of a P erso n al Loan
T eller,” M ary Louise Moffitt,
p ersonal loan teller, Ja sp e r
C ounty Savings B ank, N ew ton.
“P rep ared n ess,” G. R. Alley, as

sistan t cashier, Ames T ru st &
Savings Bank, Ames.
“Our Group Study Class,” Doris
M ayer, F o rt Dodge N ational
Bank, F o rt Dodge.
“Movies in th e B anking F ield,”
Jo h n Camp, teller, F irs t N ation
al Bank, W est Union.
“W hat Is T his E ducational Sec
tion of th e A m erican B ankers
A ssociation?”, D avid L. Colby,
assistan t vice presid en t B oat
m en ’s N ational Bank, St. Louis;

m e m b e r , E xecutive Council,
A m erican In stitu te of Banking.
“Stick-To-It-Iveness,’ C. H. Ste
phenson, vice president, B ank
ers T ru st Company, Des Moines.
Mr. S tephenson w as one of the
four national cham pion adding
m achine operators cited by the
B urroughs Adding M achine
Com pany in a n ational con
te st held u n d er th e auspices
of th a t com pany F e b ru a ry 21,
(T u rn to page 64, please)

They W ill Be in Des Moines

L iv e

A . S. B A G N A L L
V ic e P r e s id e n t
S to ck N a tio n a l B an k ,

C h icago

H. M. T U R N E R
A ss is ta n t V ic e P r e s id e n t
C h e m ica l B an k & T r u st Co.
N e w Y ork


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Federal Reserve Bank of St. Louis

F R E D B. B R A D Y
V ic e P r e s id e n t
C om m erce T ru st Co., K a n sa s C ity

O. P A U L D E C K E R
V ic e P r e s id e n t
A m eric a n N a tio n a l B a n k , C h ica g o

j . p . M cD e r m o t t
V ic e P r e s id e n t F ir s t N a tio n a l B an k
O m aha

W IL L IA M B. W H IT M A N
A s s is t a n t S ecr eta ry
M a n u fa ctu rers T ru st C o., N ew Y ork

Northwestern Banker Septem ber 19k0

64

For

YOUt Entertainment

Iowa Convention Visitors to Have Royal G ood Time
at Des Moines Meeting
OLLOWING th e p en ch an t of our
national leader for alphabetical
analogies, th e I. B. A. B. B. B. of
1940 (Iow a B an k ers A ssociation Big
B acchanalian B revities), in o t h e r
w ords, th e Stag Show to be held u n d er
canvas a t th e W akonda C ountry Club
on M onday evening, Septem ber 9, cer
tain ly com prises a v aried enough list
of acts to please everyone. To nam e
ju st a few w ho w ill be on h an d to
m ake y o u r evening one to be rem em 
bered, we s ta rt w ith Jack H erbert,
m aster of cerem onies from Chicago,
w ho w ill p re se n t th e o th er e n te rta in 
ers in his inim itable m anner, and m y s
tify you w ith some of his clever “outof-pocket” magic.
The Gale S isters —th re e v ery p e r
sonable young ladies w hose harm o n y
singing w ill rem in d you of th e days
of th e b arb er shop q u artet, only these
girls really harm onize and are good
to look a t (n o th in g personal).
Mardo and K ay —a vaudeville team
packing a terrific w allop from a com e
dy ch atter, dance, and m usical sta n d 
point. Also, be su re to w atch for
an o th er p a rty in th e ir act, not m en 
tioned in th e ir billing.
B ill T alent —w ho is kn o w n as the
“M aster of D ifficulties”, in som e feats
of juggling th a t w ill b eat any you
have ever seen done, even w ith fig
ures. Bill is a g re a t n ig h t club fav o r
ite, and you m ig h t have “c a u g h t” his
act at th e E m p ire Room at th e tim e
Bonnie B aker took th e spotlight and
sta rte d on h e r m eteoric career.
Chief Ho-To-Pi—a real honest-togoodness N o rth C heyenne In d ian chief
w ill be seen in th e new W endell
AVilkie W iggle, a AVar Dance we will
all be doing if th in g s tu rn out the
w ay we hope th ey w ill in N ovem ber.
The L on ette S isters —absolutely the
tops in acrobatic dancing. T hese w ere
th e sisters w ritte n up in R ipley’s col
um n as the only two girls ever to exe
cute a song and dance n u m b er w hile
standin g on th e ir heads.
M adeline Gardiner —th e piece-de-re
sistance of th e ev en in g ’s e n te rta in 
m en t m enu. She is called th e “Garbo
of th e D ance” in th re e of th e n u m 
bers th a t a ttra c te d so m uch a tte n tio n
at th e AA^orld’s F a ir F re n c h Village.
Two of h e r dances are titled, An
O riental Mood and th e Dances of th e

F

Northwestern Banker Septem ber 1940

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

Veils and th e Tresses. F o r them as
likes blondes, M adeline is a real one,
w ith Godiva tresses. U n fo rtunately
horses are not p erm itted on AVakond a’s fairw ays, b u t M adeline w on’t care.
T his show, o u tstanding in its e n te r
ta in m e n t caliber, w ill be u n d er the
direction of C. W . ’’D utch ” Schm idt,
and from the pictures th e w rite r has
seen of th e acts m entioned above, it’s
going to be a dandy, be sure of that.
Speak now for y o u r place in the line-

up w hen th e band sta rts playing and
th e flaps of th e big te n t are th ro w n
open.
T hen at th e an n u al banquet, held
at the H otel F o rt Des Moines on the
evening of Tuesday, Septem ber 10, you
are going to have th e privilege of
hearin g N orm a Ballard w ith h e r Elec
tric Organ in w h at she term s “Music
T h at T alk s”. A n in terestin g side
light on N orm a’s capabilities is a book
let she includes w ith h er advance ad
vertising. T his booklet nam es in al
phabetical order, 1,001 m elodies from
w hich any selection m ay be made, and
w hich she in tu rn w eaves into a m u 
sical story. D utch says he bets th ere
w ill be some b an k er w ho w ill w an t
N um ber 1,002.
Im m ediately follow ing th e banquet
th ere has been provided an un u su al
tre a t—an e n te rta in m e n t featu re th a t
w ill keep th e audience spellbound by
its m y stery and su p e rn a tu ra l quality.
N othing of its kind has ever before
been p resen ted at an Iow a B ankers
convention. AVhen it’s all over, y o u ’ll
say it can ’t be done, b u t it w ill be.
AVhile the ladies, of course, w ill a t
ten d the an n u al banquet, special e n te r
tain m en t has been arran g ed for them ,
also. M onday evening, th e 9th, th ere
w ill be a d in n er a t Y ounkers Tearoom ,
followed by th e a tre attendance for
those who wish. At noon on T ues
day th ere w ill be a luncheon at the
AA7akonda C ountry Club, w ith bridge
du rin g th e afternoon.
The annual
ban q u et w ill be held Tuesday evening
at H otel F o rt Des Moines, and the
ladies are, of course, expected to a t
tend.

P R O G R A M IO W A
C O N V E N T IO N
(C ontinued from page 63)

M A D E L IN E G A R D IN E R

1906.
He listed and added
500 checks of vary in g am ounts
on a hand-operated B urroughs
m achine in 9 m inutes 48% sec
onds. So far as is know n, Mr.
S tephenson is th e only Iowa
b an k er ever to hold such a
national cham pionship.
At
th e tim e of th a t contest Mr.
S tephenson w as a “Ju n io r
B an k er” in a form er Des
Moines b an king in stitu tio n

65

and also a th e n m em ber of th e
Des M oines C hapter of th e A.
I. B.
R eports of com m ittees, if any.
11:30 2nd A nnual Statew ide Adding
M achine C ontest of Iow a “J u n 
ior B an k ers.” T he finals in the
adding m achine contest w ill be
conducted on th e C onvention
p latfo rm in full view of th e a u 
dience. The 10 co n testan ts se
lected a t th e p relim in aries w ill
com pete for 10 cash prizes, m ade
larg er th is y e a r and also offered
by th e Iow a B an k ers Associa
tion.
A nnouncing th e w in n ers of the
adding m achine contest.
12:00 N oon—A djournm ent.

Third Day— Forenoon
9:15 a. m.
TUESDAY, SEPTEMBER 10, 1940
Hotel Fort Des Moines
PROGRAM

C onvention called to order by
C. R. G ossett, president, Security
N ational Bank, Sioux City; p re s
ident, Iow a B ankers Association.
M usical program , Bud W ebster
and his B uckaroos and soloist.
Singing, “God Bless A m erica”
by audience.
Invocation, Rev. P a tric k N. Mc
D erm ott, p astor, S aint P e te r and
P au l church, A tlantic, Iowa;
n atio n al chaplain, A m erican Leg
ion.
A ddress of welcome, F. M. M orri
son, p resident, Des Moines C lear
ing H ouse Association; p re s i
dent, V alley Savings Bank, Des
Moines.
Response to address of welcome,
Clay W. Stafford, vice p resid en t
and tre a su re r, Iow a B ankers As
sociation; cashier, Ames T ru st &
Savings B ank, Ames.
(Note: Mr. Stafford, as vice
p resid en t of th e Iow a B ankers
A ssociation a t th is tim e as
sum es th e ch air and presides
over th e C onvention u n til a ft
er th e p re se n ta tio n of th e
Iv o ry Gavel to th e president.)
A nn u al address of th e president,
C. R. G ossett, president, Security
N ational B ank, Sioux City.
P re se n ta tio n to th e presid en t of
th e Iv o ry Gavel, H a rry W. Schaller, president, Citizens F irs t N a
tio n al B ank, Storm Lake.
Response, P resid en t C. R. Gosset. (The p resid en t resum es p re 
siding.)
P re sid e n t appoints convention
com m ittees.
(a) On resolutions.
(b) A ny special com m ittees.
P re se n tin g Hon. D. W. Bates,
sta te su p e rin te n d e n t of banks,
Des Moines.
(T u rn to page 68, please)

OFFICERS

Union

BnnK

F R A N K VON SCHRADER
Chairman of Board and President
H. L. POLLARD
Vice President

nno T r u s t
Compnnv

R. W. F U N K
Vice President
MAX VON SCHRADER
Cashier
C. P. GLENN
Assistant Cashier

OTTUmUJR

W. C. MILLER
Assistant Cashier
F R E D DIMMITT
Assistant Cashier

Over 61 Vears
of Service

C. G. MERRILL

By keeping constantly in touch with all the impor
tant developments in this area we are able to
provide banks and bankers with a very helpful
correspondent service in southern Iowa where we
respectfully solicit your business.

TOTRL
RESOURCES
OVER
$6,500,000

M em ber Federal R eserve S y ste m
M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t io n

Northwestern Banker Septem ber 19^0

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

See Them
at the
Iowa Convention
G E O R G E A. M A L C O L M
V i c e P r e s i d e n t and Cash ier
D r o v e r s N a t i o n a l Ba n k , C hi ca g o

H. N. B O Y S O N
V i c e P r e s id e n t M e r c h a n t s N a t i o n a l Ba n k
Cedar R a p i d s

H. C. K A R P F
V ice President
L i v e S t o ck N a t i o n a l Ba nk , O m a h a

V E R N E L. B A R T L I N G
A s s i s t a n t C ash ie r
F i r s t N a t i o n a l Ba n k , C hi ca g o

C H A R L E S S. M c K I N S T R Y
V ic e President The N ational Bank
of W a t e r l o o , W a t e r l o o


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

FR ITZ FR IT SO N
V i c e P r e s id e n t and C ash ie r
F i r s t N a t i o n a l Ba nk , S io u x Cit y

JO H N V. HA A S
A s s i s t a n t C ash ie r
N o rt h er n T r u s t Co., C h i ca g o

1

67
( Advertisement)

"Ro l l o f H o n o r " Ba n k s
It is an honor to be listed among the HONOR ROLL BANKS. It indicates that the
bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital

T h e hanks lis te d on th is p a g e are so m e of I o w a ’s o u tsta n d in g “H o n o r R oll
Banks. B y ca refu l m a n a g e m e n t a n d sou n d b a n k in g th e y h ave a c h ie v e d this
e n v ia b le p o sitio n . T h e se ban ks ivill be e s p e c ia lly g la d to h a n d le an y collections,
sp e c ia l c r e d it re p o r ts or o th e r business in th e ir c o m m u n itie s w h ic h y o u m a y
en tru st to th em . C o r re sp o n d e n c e is in v ite d .
TO W N

Arlington........
Baldwin...........
Beaman............
Blencoe.............
B ritt.................
Buffalo Center
B urlington.... .
Burnside..........
Carlisle.............
Council Bluffs.
Decorah_____
Des Moines__
Des Moines__
D eW itt______
Donahue____
Donnellson___
E ariham ____
Em metsburg...
Humboldt.......
Humboldt___
Iowa City____
Iowa Falls...... .
Jefferson.........
Kanawha........
Laurens...........
Marshalltown..
Miles................
Milford______
Muscatine.......
Newton............
Oelwein............
Onslow.............
Osage...............
Pocahontas__
Reinbeck.........
Shelby.............
Spencer_____
Spencer_____
Union..............
Vincent_____
W aterloo____
W est Bend__
Whittemore....
W right............

BANK

A m erican N a tio n a l B a n k ............. ......
B ald w in S a v in g s B a n k ...........................
F a rm ers S a v in g s B a n k ...........................
B lencoe S ta te B a n k ...........................—
F ir st S ta te B a n k .................................—
F a rm ers T ru st & S a v in g s Bank
B u rlin g to n S a v in g s B a n k ......................
B u rn sid e S a v in g s B a n k ........................
H artford -C arlisle S a v in g s B a n k ___
C ouncil B lu ffs S a v in g s B ank ............
D ecorah S ta te B a n k ..............................
C entral N a tio n a l B ank & T ru st Co. ..
V a lley S a v in g s B ank ................ .............
D eW itt B an k & T ru st C o ...................
D on ah u e S a v in g s B a n k ..........................
C itizen s S ta te B a n k ..................................
E arih am S a v in g s B a n k ....... .............—
C entral S a v in g s B ank & T ru st Co.
F ir s t N a tio n a l B a n k ________ ______H um boldt T ru st & S a v in g s B ank ...
Iow a S ta te B ank & T ru st Co— .......
Iow a F a lls S ta te B a n k ...... ....................
J efferson S ta te B a n k .............................
F a rm ers S ta te B a n k ............. ................
L au ren s S ta te B a n k ....... ................
S e c u r ity S a v in g s B a n k ..........................
M iles S a v in g s B a n k ..................................
D ick in son C ounty S a v in g s B a n k ----M u scatin e B an k & T ru st Co-----------J a sp er C ou n ty S a v in g s B ank
F ir s t N a tio n a l B a n k _______________
O nslow S a v in g s B a n k ............................
H om e T ru st & S a v in g s B a n k ..............
C om m ercial S ta te B a n k .......................
L incoln S a v in g s B a n k ............................
F a rm ers S a v in g s B a n k .........................
C lay C ou n ty N a tio n a l B a n k ...............
F a rm ers T ru st & S a v in g s B a n k ----U n io n -W h itten S ta te S a v in g s B ank
F a rm ers S a v in g s B a n k ........................
T he N a tio n a l B an k o f W a terlo o ......
Iow a S ta te B a n k ....................................
F a r m e r s S ta te B a n k ............................,
F a rm ers S a v in g s B a n k .......................

CAPITAL
OFFICER
.....$
25,000
_H. R. Young_________
_C. A. H arding_______ .... 20,000
W. E. W horrall______ ..... 25,000
B. E. McElwain______ .... 25,000
_V. D. Koons_________ ..... 50,000
E. E. Sapp__________ .... 25,000
100,000
W. H. Swiler________
10,000
0. B. Lundgren______
,.G. D. Schooler......... . ..... 25,000
150,000
E. H. Spetm an_______
J. N. Lee
____ ...... 50,000
_F. R. W arden_______ ....1,000,000
J. R. Astley_________ ...... 150,000
-T. Yvo Floerchinger........... 25,000
..Walter E. P austian___ ...... 20,000
_.R. L. Schm itt________ ...... 25,000
-W. G. Jackson_______ .... 25,000
60,000
__J. W. Edge___ __ ____
B. B. W atson________ ... 50,000
. J. L. Campbell_______ ...... 50.000
-.W. F. Schmidt_______ ... 100,000
-_B. L. Johnson________ ...... 25,000
V. W. Miller_________ — . 50,000
E. B. Sheldahl_______ ..... 25,000
..E. B. Pannkuk______ ..... 25,000
..Will A. Lane________ .... 50,000
__J. R. W itzigm an____ ...... 30,000
. S. I. Russell_________ .... 25,000
— 125,000
B. L. McKee
..Ray 0. Bailey........... . ...... 100,000
M. C. Hanson _____ ...... 50,000
..George H. Paulsen__ ...... 20,000
-W. E. Sheldon_______ ...... 50,000
..Charles E. W atts___ ...... 25,000
..J. W. Hepperle_____ ...... 25,000
-L . 0. Stoker_________ ...... 25,000
-A . E. Anderson_____ ...... 85,000
75,000
-K . R. T uttle_________ —
-C. F. Long__________ ...... 25,000
15,000
A. 0. Swasand_______ —
R. L. Penne_________ ..... 250,000
..J. J. Jaeger_________ ...... 20,000
..J. P. Uhlenhake_____ ..... 25,000
..Oliver Anderson ____ ...... 15,000

SURPLUS
PROFITS
$ 35,000
24,000
33,000
27,000
67,000
40,507
198,000
17,000
38,967
209,000
121,000
1,184,875
306,000
48,000
22,000
25,998
44,000
105,000
115,000
135,000
110,305
58,000
96,000
50,000
37,000
75,000
33,000
41,406
192,000
195,000
100,000
39,371
65,000
30,000
45,000
30,000
104,676
94,531
26,500
24,000
285,800
24,000
31,500
44,000

Northwestern Banker Septem ber 1940

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

68

P R O G R A M IO W A
C O N V EN T IO N
(C ontinued from page 65)
SPEAKERS

A ddress, E. L. Pearce, executive
vice president, The U nion N a
tional B ank, M arquette, M ichi
gan, “W h at Does th e F u tu re Hold
for the C ountry B ank—Its Defi
nition, P osition and T rad itio n s.”

A ddress, Hon. H am ilton Fish,
m em ber of th e U. S. H ouse of
R epresentatives, W ashington, D.
C., “Peace and N ational Defense.”
M eeting of th e Iowa A. B. A.
m em bers. The I. B. A. conven
tion w ill at this tim e be tem po
ra rily suspended and resolved in 
to a convention of the Iowa m em 
b ers of the A. B. A. All w ho are
not m em bers of th e A. B. A. are
also cordially invited to rem ain.

P resen tatio n by P resid en t C. R.
Gossett, J. J. Miller, vice p resi
dent of the A. B. A. of Iowa, and
cashier of the W aterloo Savings
Bank, W aterloo.
R em arks and rep o rt of the y e a r’s
A. B. A. w ork in Iowa, J. J.
Miller.
E lection of Iow a A. B. A. officers.
M eeting of th e Iow a m em bers of
th e A. B. A. adjourned.
P resid en t C. R. G ossett resum es
presiding.
Session adjourned, 12:00 o’clock
noon.

Third Day— Afternoon

DROVERS

12:15 p. m.
TUESDAY, SEPTEMBER 10. 1940
West Ballroom, Mezzanine Floor
Hotel Fort Des Moines
20th Annual Conference of the Officers
of the County Bankers Association on

• C /u c a ¿/&

"Still More Profitable Bank
Operation" in Iowa
PROGRAM

IOWA HAM.Fits CONVENTION
September 9 th to 11th
DES MOINES

GEORGE A.
MALCOLM
V ice - P resid en t
a n d C ashier

à

We look forw ard w ith real pleasu re—
e a c h a n d every one o f us — to th e
o p p o rtu n ity w hich th e Iow a C on
v en tio n presents of m eeting fellowhankers. T he constructive exchange of
th o u g h ts, th e en joym ent in know ing
" th e o th er fellow” ju s t a little b e tte r
—m ake convention days delightfully
w orthw hile. A nd explain w hy we look
forw ard to m eeting you in D es M oines.

A s s ista n t
C ashier

JgJ I

FRED D.
CUMMINGS
R epresen ta tive

OHOVEHS NATI ONAL HAN ft
D R O V E R S T R U S T & SAVI NGS HANK
MEMBERS, FEDERAL

DEPO SIT

INSU RAN CE

C O RPO RA TIO N

BANKING 3n»ictSUzM2
Northwestern Banker Septem ber 19b0

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

1

P. M.
12:20 “D utch tre a t” luncheon (T ick
ets 75c per plate). M aster of
cerem onies, C. W. (“D utch” )
Schm idt, Des Moines. Accom
panist, Mrs. Mabel Moss Madden.
Singing, (P am p h let of selected
songs w ill be at each plate).
1:45 Conference called to order and
rem arks, A. T. Donhowe, p resi
dent, “O rganization of Officers of
County B ankers A ssociations”;
secretary, Polk County B ankers
Association; vice president, Cen
tra l N ational B ank & T ru st Com
pany, Des Moines.
R eport of the vice president, J.
W. Davis, vice president, “O rgan
ization of Officers of County
B ankers A ssociations”; treasu rer,
P o ttaw attam ie County B ankers
Association; president, Citizens
Savings Bank, Avoca.
R eport of the secretary, H. B.
H am m er, secretary, “O rganiza
tion of Officers of County B ank
ers A ssociations”; form er p res
ident, L ouisa-W ashington Coun
ty B ankers Association; execu
tive vice president, State B ank
of W apello.
A ppointm ent of com m ittee.
(a) R esolutions and nom inating
com m ittee.
2:00 G reetings from presid en t of I.
B. A., C. R. Gossett, president,
Security N ational Bank, Sioux
City; president, Iow a B ankers
A ssociation.
G uest speaker, M arshall R.
Diggs, executive vice president,
T ravelers C redit C orporation,
W ashington, D. C., “Travel-oncredit, or B an k ers’ O pportunity

69
of C ooperating w ith a M ajor In 
d u stry .”
“F a rm A ppraisal Schools for
B an k ers,” (E m m et C ounty), K.
J. M cDonald, president, Iow a
T ru st & Savings Bank, E stherville;
chairm an,
A gricultural
C om m ittee of Iow a B an k ers As
sociation.
“Should W e H ave an Iow a B ank
e rs ’ re tire m e n t Pension Plan?
W h y ?” (P ly m o u th C ounty), R.
E. Tool, cashier, F irs t N ational
B ank, LeM ars.
“Our K ind of A nnual R eport to
Our Stockholders,” (Boone Coun
ty ), C. W. A nderson, vice p resi
dent, Boone C ounty B an k ers As
sociation; vice p resid en t and
cashier, City State B ank, M adrid.
“R eport by Iow a’s R ep resen ta
tives to the W age and H o u r H ear
ing in W ashington, Ju ly 9, 1940,
E n d eav o rin g To Get R edefinition
of B ank ‘E x ecu tiv e’, ‘A dm inis
tra tiv e ’ and ‘P rofessio n al’ E m 
ployees,”
(a) (Story C ounty), Clay W.
Stafford, cashier, Ames T ru st &
Savings Bank, Ames; vice p resi
den t and tre a su re r, Iow a B an k 
ers Association.
(b) (Louisa C ounty), H. Lee
H uston, cashier, Colum bus Ju n c 
tio n State Bank, C olum bus Ju n c 
tion.
“N ational D efense L oans—How
Can Iow a B anks H elp?” (M arsh
all C ounty), W. A. Lane, p resi
dent, S ecurity Savings Bank,
M arshalltow n.
G uest speaker, C. C. Jacobsen,
“A g ricu ltu ral C hattel L oans.”
“P a n e l” discussion on in sta ll
m en t lending,
(a) L eh m an P lum m er, director;
vice p resid en t and in charge
of p ersonal loan d ep artm en t
of th e C entral N ational B ank
& T ru s t Co., Des Moines;
ch airm an, C onsum er Credit
C om m ittee of th e Iow a B an k 
ers Association.
(b) W. G. Nelson, assista n t cash
ier and in charge of personal
loan d e p a rtm e n t of The Live
stock N ational B ank, Sioux
City.
(c) K. A. Coates, cashier, Peoples
Savings Bank, C raw fordsville; m em ber, C onsum er
C redit C om m ittee of th e
Iow a B an k ers Association.
(d) H. L. O llenburg, vice p resi
d en t and cashier, H ancock
C ounty N ational Bank, G ar
ner.
(e) Jo h n T. H am ilton II, vice
p resid en t and in charge of
persona] loan d ep artm en t of

th e Des Moines Clearing H ouse
Association.

th e
M erchants
N ational
Bank, Cedar Rapids.
4:45 Session ad jo u rn ed u n til 9:15 A.
M.

Fourth Day— Forenoon
WEDNESDAY, SEPTERMBER 11. 1940
9:15 a. m.
Final Convention Session
West Ballroom, Mezzanine Floor
Hotel Fort Des Moines

TUESDAY, SEPTEMBER 10, 1940

P. M.
7:00 Sharp — B anquet — W est ball
room, m ezzanine floor, F o rt Des
Moines Hotel. A fine program
of en te rta in m e n t and a big s u r
prise featu re for you. Open to
ALL m en and ladies registered
for th e convention and having a
ticket. A dm ission by ticket only.
T his banquet arran g ed for by

M eeting called to order by the
president.
M usical program , The Northw estern ers and B etty Jean, solo
ist.
E lection of officers.
(T u rn to page 71, please)

Th,

.his month all roads lead to the 1940 Iowa Bankers
Association Convention. You’ll find the First
National Bank in Sioux City well represented at the
convention, and we hope to see you there.
Like the Iowa annual convention, First National
Bank correspondent service becomes better and more
complete each year. You, too, will enjoy doing
business with this institution.

OFFICERS
A. S. H A N F O R D
President

J. R. G R A N I N G
A s s i s t a n t Cash ier

A. G. S AM
V i c e P r e s id e n t

E. A. J O H N S O N
A s s i s t a n t C ash ie r

J. T. G R A N T
J. P. H A I N E R
A s s i s t a n t Cash ier
V ice President
F R I T Z F R I T Z S O N , V i c e P r e s i d e n t & Cash ier

Northwestern Banker Septem ber 19'itì

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Federal Reserve Bank of St. Louis

Meet Them
InDes Moines
September 9

1 0 - 1 1

JOHN

A. C H A N G S T R O M
V ic e President
Omaha National Bank, Omaha

RAE L A U D E R
A. C. A l l y n C o m pa n y
D es M oines

J O H N J. A N T O N
V i c e P r e s id e n t
F i r s t N a t i o n a l Ba n k , C hi ca go

F R A N K M. C O V E R T
A s s i s t a n t C ash ie r
D r o v e r s N a t i o n a l Ba n k , C h i ca g o

D . R. C R O U L E Y
A s s i s t a n t C ash ie r
N o r t h w e s t e r n N a t i o n a l B an k
M i n n e a p o li s

C H A R L E S M. N E L S O N
V i c e P r e s id e n t
N or th er n T r u s t Co., C hi ca g o

BRUCE TO W N SEND
V i c e P r e s id e n t
C itv N a t i o n a l B a n k . Cl int on


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Federal Reserve Bank of St. Louis

71
• I O W A

P R O G R A M IO W A
C O N V E N T IO N
(C ontinued from page 69)
A ddress, Dr. E ddie A nderson,
M. D. H ead football coach, State
U n iv ersity of Iow a, Iow a City,
“The Y outh and Our L and.”
A ddress, C. B. U pham , senior
dep u ty com ptroller of th e c u r
rency, W ashington, D. C., “The
B ank of th e F u tu re .”
A ddress, Colonel P hilip B. F lem 
ing, ad m in istrato r, W age and
H o u r Division, U. S. D ep artm en t
of L abor, W ashington, D. C., “E f
fect of W age and H our Law on
B anking.”
R eport of com m ittees.
U nfinished or new business.
R eceiving in v itatio n s for the
1941 convention.
A d jo u rn m en t of th e 54th con
vention, 12:30 P. M.

N E W S -

8:30 Superb te n t floor show, W akon
da Club.
TUESDAY. SEPTEMBER 10. 1940

7:00 B anquet, M ezzanine floor, F o rt
Des M oines Hotel. E x trao rd in ary
en tertain m en t.

County Meeting
T he C layton County B ankers As
sociation held th e ir sum m er m eeting
at S traw b erry P o in t w ith forty-five a t
tending. Follow ing a seven o’clock
d in n er th e follow ing program nu m 
bers w ere enjoyed:

Vocal solos by E ldon Stafford and
Miss Alice Ivory w ith accom panim ent
by Mrs. E. L. Gross; cornet solo by
George G undacker, accom panied by
his father, Don G undacker; ta lk on
banking by H. R. Young of A rlington;
illu strated lecture by C ounty A gent
G rover H ahn of E lkader.
E lection of officers resu lted as fol
lows: P resident, F. J. Oehmke of Guttenberg; vice president, Jam es Adam s
of Edgewood; secretary and treasu rer,
C. A drian R iveland of Luana.
The nex t m eeting w ill be held at
L uana in October.

Convention Entertainment
A new k ind an d an o u tstan d in g
k in d of pro g ram has been arran g ed
by th e e n te rta in m e n t com m ittee of
the Des M oines C learing H ouse Asso
ciation and by th e “Ladies of th e Des
M oines B an k ers C lub” for th e m en
and ladies, respectively, atte n d in g th is
convention.

At the Iowa Bankers Convention
the Commerce will be
represented by

For the Ladies
(Tickets required at all features)
MONDAY, SEPTEMBER 9, 1940

P. M.
6:30 D inner at Y o u n k ers’ Tea Room,
E ig h th and W aln u t streets, local
ladies acting as hostesses.
Style show, courtesy of Y ounk
e rs ’ Store.
T h eatre p arty .

F

R

B. B r a d
V ic e President

red

y

L. D u n l a
Assistant V ic e President

i c h a r d

p

TUESDAY, SEPTEMBER 10. 1940

1:00 L uncheon, W akonda C ountry
club, local ladies acting as h o st
esses. T ra n sp o rta tio n w ill be
provided and cars w ill leave the
F o rt Des M oines H otel betw een
12:15 P. M. and 12:30 P. M. Ladies
m ay drive th e ir ow n cars if th ey
prefer.
A fternoon bridge.
7:00 B anquet, M ezzanine floor, F o rt
Des M oines Hotel. E x tra o rd in a ry
en tertain m en t.

For the Men

(ommerceprust(ompany
C a p i t a l , S u r p l u s a n d U n d iv i d e d ( 'Profits / 2 U t i l l i o n ( D o lla r s

KA N SA S C IT Y 'S L A R G E S T BANK
Established 1865

În S UR A SKI E EC

O R >VnC) N

(Tickets required at all features)
MONDAY. SEPTEMBER 9, 1940

AFTERNOON
Golf
to u rn am en t,
W akonda
C ountry Club.
EV E N IN G
5:00 to 7:00 Social hour, W akonda
C ountry Club.
7:00 Buffet supper, W akonda Coun
try Club.
Northwestern Banker Septem ber 1940

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Federal Reserve Bank of St. Louis

72

•
Scholarships
A nnouncem ent has been m ade by
the N ational City F o u n d atio n of the
N ational City B ank of New York, of
th e aw ard of a second scholarship to
a South A m erican stu d e n t for a college
course in an A m erican u n iv ersity . The
selection w as m ade by a board of well
know n figures in South A m erican
finance, education and diplom acy, in
cooperation w ith th e officers of the
N ational City Bank, and T rajan o Pupo
N etto of B razil received th e aw ard.

I O W A

N EW S

.

The scholarship is the second one
given out by th e F oundation in line
w ith its effort to fu rth e r cem ent the
cu ltu ral and com m ercial relations be
tw een L atin A m erica, w here the N a
tional City has 41 branches, and the
U nited States. T he first w en t to Lo
reto M. Dominguez, of Buenos Aires,
A rgentine, in 1939, and the recipient
has ju st com pleted his first year of
stu d y at the H arv ard G raduate School
of B usiness A dm inistration w ith such
success th a t th e N ational City F ou n d a
tion decided on a second aw ard.

A Man of Distinction in Your Community

Elected Director
Election of Jo h n C. Brow n, wellknow n F o rt Dodge grocer, to the
board of directors of th e S tate Bank,
w as announced last m onth.
He succeeds W illiam F. Becker, w ho
died recently.
Mr. B row n is a life-long resid en t
of F o rt Dodge, and has been a leader
in m any civic activities. He has been
p resident of th e Young M en’s C hris
tian A ssociation, and is a p ast com
m ander of the A m erican Legion.
Mr. B row n’s business is th e oldest
in th e city in the point of continuous
years, and occupies the sam e loca
tion it had w hen his fa th e r founded
the firm in 1867.

President Dies
Delos E. W aldron, 73, presid en t of
the F irst N ational B ank of Glidden,
died suddenly a t his home. He had
not been in good health for some tim e
past.
Since 1892, Mr. W aldron had been
connected w ith th e banking in stitu 
tion w hich he served as president.
H ow ever, th is service w ith the bank
dated back to earlier th a n th a t year.
In 1886 he took his first position w ith
the in stitu tio n th en know n as the
Glidden State B ank w hich w as in 
corporated as the F irs t N ational Bank,
in 1892.
A dvancing from bookkeeper to as
sistan t cashier, Mr. W aldron w as pro
m oted from the la tte r position to th a t
of cashier in 1892. He serv er as cash
ier for m any y ears before becom ing
president.

YOUR HAWKEYE CASUALTY AGENT
H e serves best w ho serves others w ell. T h is is the slogan and plan
of operation o f the H aw keye Casualty agent. H e is p ro u d of the
C om pany he represents and the C om pany is p ro u d of h im .

This m an know s his business an d is a c re d it to th e Insu ran ce
P rofession. W ell tra in e d by stu d y an d exp erien ce h e is b e tte r
qu alified to p re sc rib e fo r y o u r in su ra n c e needs. T h e H aw keye
m an is y o u r n e ig h b o r, close a t h a n d , alw ays read y , w illing and
able to discuss a loss settlem en t o r p ro te c tio n p ro b lem . T he
H aw keye C asualty agent is a h ig h ly re g ard ed re p u ta b le m an in
y o u r com m unity. H e w ants to know you— it w ill p a y you to
know him .
H a w k e y e C a s u a lty Is Io w a 's
O w n S to c k C o m p a n y , w ith a s 
se ts o f o v e r o n e m illio n d o lla r s .

H A U IK t y t

CASUALTY COmPAny
dcs

Northwestern Hanker Septem ber 19^0

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

m o n ie s , iouja

The Strong W est
E a ste rn e rs used to look down th e ir
noses at the co u n try w est of th e Alleghanies because banks w ere sm aller
th ere and m ore of them failed. B ut
federal deposit insurance has brought
to light a changed condition. In the
last six y ears or so, New Jersey, New
York, and P en n sy lv an ia have been
th e trouble spots.
The F ederal Deposit Insu ran ce Cor
poration, in th e period from Ja n u a ry
1, 1934, th ro u g h Ju ly 31, 1940, has paid
a gross outlay of 221 m illion dollars
in the form of loans or payoffs to in 
sured banks—71 per cent of it in those
th ree states.
Of course the w eak banks w est of
the A lleghanies had m ostly gone be
fore the FDIC w as established. Still,
it’s nice to know th a t our regional
record is now a good one.

73

Talks in Ames
R. E. Hill, public in te re st d irecto r of
th e F ed eral Hom e L oan B ank of Des
Moines, told th e K iw anis club of Ames
th a t savings, building and loan asso
ciations w ere a dom in an t factor in
financing A m erican homes.
“P roof th a t th e y are operated on
sound business p rinciples and th a t
th e y have responded faith fu lly to a
real public service need is evidenced
by th e fact th a t alm ost 9,000 of them
are actively functioning in th is coun
try today,” he asserted.

GREETINGS
to th e
IO W A B A N K E R S A S S O C I A T I O N
May your 1940 Annual Convention, September 9-11 in Des Moines,
be highly successful and enjoyable as usual. As always, this bank is
happy to take part in Association affairs and to work for the betterment
of Iowa banking.

DIRECTORS:

For Executive Council
As th e convention of th e Iow a B an k 
ers A ssociation d raw s near, and w ith
no fu rth e r an n o u n cem en ts from o th er
prospective candidates, it w ould ap 
pear th a t J. J. Miller, cashier of the
W aterloo Savings B ank, will ru n for

Dr . E. M. M a c E w e n , D e a n of C o ll e g e of M e d i c i n e , S t a t e U n i v e r s i t y of I o w a
R. J. B a s c h n a g e l , D ir e c t o r , F e d e r a l L a n d Ba n k , O m a h a
G eo rg e A. T h o m p s o n , R et ir e d
G eo rg e J. K e ll e r, P r o f e s s o r o f E n g i n e e r i n g , S t a t e U n i v e r s i t y of I o w a
M. B. Guth rie , C as h ie r
Guy A. S t e v e n s , Fa r m er
B e n S. S u m m e r w i l l , P r e s id e n t

OFFICERS:
B e n S. S u m m e r w i l l , P r e s id e n t
Dr. E. M . M a c E w e n , V i c e P r e s i d e n t
M . B. Guthrie, C as h ie r
M . E. T a y lo r , A u d it o r
W . F. S ch m id t , A s s i s t a n t Cash ier
W . W . S u m m e r w i l l , Cr ed it M a n a g e r

I O WA S T A T E B A N K
& T R U S T COMPANY
Iow a City, Iow a
M e m b e r Fe d e r a l D e p o s i t I n s u r a n c e Corpo ratio n

Keeping Abreast of This
Fast-Changing World!
J. J. M I L L E R

th e office of m em ber of th e executive
council of th e A m erican B ankers A s
sociation w ith o u t opposition. It will
be rem em bered th a t Mr. M iller a n 
nounced his candidacy for th e office
last May.
Mr. M iller has been w ith th e W a te r
loo Savings B ank since 1906, p ro g ress
ing from a ssista n t cashier in 1917,
an d a sh o rt tim e la te r w as elected a
d irecto r of th e in stitu tio n . State vice
p resid en t for th e A. B. A. from Iow a
a t th e p re se n t tim e, he has alw ays
tak en an active p a rt in state and n a 
tional ban k in g affairs, and is ad m ir
ably fitted for th e office he now seeks.
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.

These are extraordinary times.
With some
nations at w ar and others bulwarking their
defenses, history is constantly in the making.
A s a consequence, the banking world must
be alert— up on its toes.
Our connections,
fortunately, are such that w e can at all times
give our customers up-to-the-minute informa
tion and efficient service . . . in keeping with
the trend of the times.

SECURITY NATIONAL BANK

siouxcity

OFFICERS
C har les R. G o s s et t , P r e s id e n t
A lb e r t C. E ck e r t , V i c e P r e s i d e n t

D e l k o B lo e m , V i c e P r e s id e n t
R. E a r l B ro w n , C ash ie r

D a n i e l B. S e v e r so n , F r a nk H . A b e l, A l v i n G. N e ls o n ,
R o be rt W . L e w i s , A s s i s t a n t C as h ie rs
M e m b e r F ed era l R e s e r v e and F D I C

OM AHA

N orthwestern Banker Septem ber 19^0

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Federal Reserve Bank of St. Louis

74

Adding Machine Contest
H E follow ing are ru les governing
th e “A dding m achine c o n test” to
be conducted as a p a rt of th e “Ju n io r
B an k ers’ Session” of th e F ifty-fourth
A nnual C onvention of th e Iow a B ank
ers A ssociation w hich is a contest open
to all staff m em bers below cashiers
(including m en and w om en) of any
and all Iow a banks. In o th er w ords
the contest is open only to those w ho
actually c a rry on th e clerical and ro u 
tine and m echanical operations of th e ir
banks and w ho consider them selves as
“Ju n io r B an k ers.”

T

The try-out w ill be open to each and
every Ju n io r B anker, including both
m en and w om en of any and all Iowa
b anks w ho m ay desire to try out in
th e p relim inaries. The prelim inaries
w ill be held in P arlo r A. M ezzanine
Floor, F o rt Des M oines Hotel, Des
Moines, from 9:00 A. M. to 11:00 A. M.,
only, M onday, Septem ber 9, 1940. Con
te sta n ts m u st be on h and prom ptly
and read y to en ter eith er prelim i
naries a n d /o r finals w hen th e ir nam es
are called or forfeit th e ir rig h t to com
pete.

Co ntinental
I llinois
N atio n al Bank
and

T rust Co m pany
of

C h icago

Member Federal Deposit Insurance Corporation

Northwestern Banker Septem ber 1940

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

Both B u rroughs and A llen W ales
adding m achines w ill be provided so
the co n testants can tak e th e ir choice.
The o p p o rtu n ity is also open to any
o th er m an u factu rer of adding m a
chines to fu rn ish its m achine for the
free use of the contestan ts if it is w ill
ing to do so. No co n testan t w ill be
perm itted to b ring an adding m achine
to th is contest. He or she m u st take
th e ir choice and m u st use one of the
m achines th a t w ill be provided. Only
stra ig h t listing m achines electrically
operated w ill be used.
C ontest tak es into consideration accurracy and speed. The contest will

be one tak in g into consideration first
accuracy and th e n speed.
N um ber of ch ecks to be added. E ach
co n testan t in both the p relim inaries
and finals w ill be asked to add 150
checks each of a different am ount.
H ow application is m ade. M ust be
on file w ith I.B.A. to be eligible. A p
plications m ay be m ade in person or
in w riting. B ut all applications to be
eligible m ust be received by the State
H ead q u arters of th e Iowa B ankers
A ssociation by not later th a n 6:00 P.
M., Sunday, Septem ber 8, 1940.
P ersons ch osen for the finals. The
finals w ill include the 10 persons eith er
m en or w om en w ho held th e 10 h igh
est ran k in g s in th e p relim inaries sub
ject to th e lim itations set forth.
F in als. T he finals w ill be held on
th e convention platform itself and m ay
be atten d ed by any and all b ankers
and ladies p resen t for the Convention.
The finals w ill com m ence prom ptly
a t 11:30 A. M., and w ill be finished at
or about 12 o’clock noon, Monday, Sep
tem ber 9, 1940.
Judges. Judges for the prelim inaries
and finals w ill be selected by the
p resid en t of th e Iowa B ankers Asso
ciation. The decision of the judges w ill
be final. N am es and tim e of each w in
n er w ill be p u t on a score board.
P rizes. T en cash prizes w ill be
aw arded to th e 10 persons com peting
for th e finals as follows: F irs t prize,
$30.00; second prize, $20.00; th ird prize,
$12.00; fo u rth prize, $7.00; th ree prizes
of $2.00 each; and th ree prizes of $1.00
each. T otal of $78.00.
L im itations. N ot m ore th an one con
te sta n t from any one b ank can en ter
th e finals. N ot m ore th a n any tw o
can be w on by th e aggregate num ber
of con testan ts of any one city or town.
A ny co n testan t having previously w on
any cash prize cannot again w in an 
o th er cash prize in th is contest ex
cept one of some h igher ran k in g th a n
th a t w hich he previously won. In
order to help m ain tain the continued
in te re st of all w ho have w on first cash
prize it is hoped and anticipated th a t
n ex t year a tro p h y cup can be added
(T u rn to page 76, please)

>

These Men
Will Be At
Iowa Convention
FRANK KAUFFMAN
P r e s id e n t
B a n k e r s T ru s t Co., D e s M o i n e s

S t oc k

JOHN M cCUM BER
C ash ie r
Y a rd s N a t i o n a l Ba n k ,

Omaha

L. K. B I L L I N G S
A s s i s t a n t V i c e P r e s id e n t
C it y N a t i o n a l Ba n k , C hi cag o


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Federal Reserve Bank of St. Louis

N O R M A N B. S H A F F E R
V i c e P r e s id e n t
Con ti n en t a 1-111 ino is N a t i o n a l Ba n k ,

L A W R E N C E A. K E M P F
A s s i s t a n t C ash ie r
N o rt h er n T r u s t Co., C hi ca g o

C hi ca g o

o w e n M cD e r m o t t
S ha w , M c D e r m o t t & S pa r ks
D es Moines

J. J. M A L O N E Y
A s s i s t a n t C as h ie r
F i r s t N a t i o n a l B an k & T r u s t Co.
M in n e a p o li s

76

—•

I O W A

NEWS

•—

(C ontinued from page 74)

now planned. The plan if adopted
n ex t y ear w ill be m ade retroactive to
and inclusive of th e first adding m a
chine contest held last year (1939).

to th e prizes for th e person ineligible
for first cash prize b u t w in n in g th e
highest ra tin g in th e contest, and to
be aw arded to th e c o n te sta n t’s bank
to be held by th a t b an k for one year;
any one or m ore co n testan ts of th a t
ban k w in n in g the tro p h y for th re e con
secutive y ears w ill en title th a t b ank to
keep th e tro p h y p erm an en tly it is

In case of ties eith er in th e p re
lim inaries or in th e finals the w inner
m ay be chosen by any m ethod deem ed
m u tu ally fair by th e judges, eith er by
flipping a coin or having th e tie con
te sta n ts m ake re-runs of th e ir addings
and select th e one having the tw o best
records out of th ree re-addings of the

A D D IN G M A C H IN E
CO N TEST

in Case of Ties

150 checks. The Officers of th e State
A ssociation reserve th e rig h t to can
cel th is contest w ith o u t notice if the
n um ber of cities or tow ns represented
by co n testan ts should be less th an
two, th e reason being obvious. Ju d g 
ing from p resen t indications, how ever,
th ey do not anticipate th a t th a t will
happen. It is th e hope of th e Asso
ciation officers th a t th ere w ill be a
long list of co n testants from m any
banks located in m any different com
m unities of th e state.

Cashier Resigns

Clinton Is Growing!
Since 1935, Clinton annual payrolls have in
creased more than a million dollars, from
new industries locating here. REA
SON: Desirable local situation,
five railroads and the new
Mississippi river docks.
ypU CAN SAFELY RECOMMEND CLINTON!

H a rry W. E n g er has resigned his
position as cashier of th e F irst State
B ank of W h at Cheer to accept a po
sition w ith th e H ardw are Dealers Mu
tu al insurance com pany. His office
w ill be located at Johnson City, T en
nessee, a city of about 30,000.
Mr. E n g er has been cashier of th e
F irst S tate B ank since its organiza
tion.
A rnold C. Petznick, form erly cash
ier of the L aP orte City State Bank,
has been selected to succeed Mr.
E nger.

Change in Capital

The
City National Bank
CLINTON, IO W A
M e m b e r F e d e r a l D e p o s i t I n s u r a n c e Corpo ratio n

C apital C ity State Baiik
-------------------------------------- D E S

M O I N E S

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

Effici ently Meeting
Every Modern
Banking Requirement
S ix ty -tw o Y e a rs of
C onservative Banking
MEMBER

FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker Septem ber 19Ï0

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

The F a rm e rs State Savings B ank
of Independence announces a change
in its capital stru ctu re, the rem aining
outstanding p referred class “A ” stock
being retire d and replaced w ith an
equal am ount of com m on stock.
E ach stockholder of record as of
A ugust 10th, becomes the ow ner of a
pro ra ta share in th e new common
stock. F o r each share of stock held
th e stockholder gets two additional
shares.
New shares to be issued w ill be of
$50 p ar value, th e sam e as the old
stock.
The common stock is increased from
$25,000 to $75,000, and th ere is out
standing $25,000 class “B” preferred
stock. A ccordingly, th e total capital
stock of $100,000 rem ains the sam e as
before.
By th is move th e ban k pays off the
$50,000 class “A” p referred stock is
sued to th e governm ent back in the
b ank holidays, clearing up the in
debtedness, and placing the hank in
th e sam e position it occupied before
th e holiday.

Bush Named President
M eeting in Sioux City recently,
m em bers of th e W oodbury County
B ankers A ssociation elected H enry W.
Bush, a ssistan t cashier at th e F a rm 
ers Savings Bank, Pierson, president

77
fo r th e new year. He w as advanced
from th e office of association secretary
w hich he has held for th e p ast four
years. Mr. B ush succeeds W. H. Mc
D onald of S m ithland.
O ther new officers elected w ere
Jam es B yers of Sloan, vice president;
and H om er Boyd of A nthon, secre
tary -treasu rer. W. G. N elson of Sioux
City w as appointed ch airm an of the
a n n u al picnic in R iverside park, as
sisted by A. C. E c k e rt and C. A. J o h n 
son, both of Sioux City, and A. W.
W eis of S erg ean t Bluff.
A series of panel discussions on in 
te re s t rates, inactive accounts, stop
p ay m en ts of checks, pension plan for
b an k s w ere led by C. R. Gossett, p resi
d en t of th e S ecurity N ational B ank
of Sioux City.

To Arrange Date
M em bers of th e V igilante shoot
com m ittee of th e Scott C ounty B ank
ers A ssociation m et a t th e hom e of
R udolph Schroeder, p resid en t of th e
association, in Buffalo recently, to fix
th e date for th e an n u al shoot to be
held at Camp Lincoln.
The m em bers of th e com m ittee in 
clude P. J. Thede, p resid en t of th e
D ixon Savings Bank; Louis M artin,
a ssista n t cashier of th e F irs t T ru st

M

r.

P ic tu re d above is an a irp la n e v iew o f th e se v e ra l p ro c essin g b u ild in g s a n d g e n 
e ra l office of th e Io w a P a c k in g C om pany, Des M oines. A ra p id ly g ro w in g o rg a n 
iz a tio n , th e fo llo w in g s ta tis tic s , b a se d on 1939 figures, a re in te re s tin g . T he
Io w a P a c k in g C om pany p a y s in w ag es to its em ployes $1,540,000; p a y s fo r liv e 
stock, $18,000,000; b u rn s coal a m o u n tin g to 16,800 to n s ; uses 380,900,000 g allons
of w a te r ; uses 5,315,000 cubic f e e t of g a s; uses 4,033,000 K W H of e le c tric ity ;
a n d uses 20,000,000 p o u n d s of ice. T hese figures, as s ta te d above, a re on an
a n n u a l b a sis, a n d a re fo r th e fiscal y e a r 1939.

& Savings Bank, and F red G rünew ald,
a ssistan t cashier of th e D avenport
B ank & T ru st Company.

liam sburg, to succeed A. H. Evans,
w ho has been m ade m anager of the
W illiam sburg lum ber store.
Mr.
Lew is w as a ssistan t cashier of the
b an k before th e change. He has been
Elected Cashier
in th e b anking business 36 years.
D.
J. Lew is has been elected cashier Mr. Evans, w ho w as p resident of the
of th e Security Savings Bank, W il old W illiam sburg Savings Bank, w hich

B a n k e r .-

W h e n y o u are co n sid erin g n e w F L O O R C O V E R IN G S in y o u r bank,
o r A C O U S T IC A L C E IL IN G S , let us s h o w y o u w h a t w e a re doing for
o th e rs an d th e n , w h a t w e can do fo r you.

Designers and Contractors
Parkay Tile - Rubber Tile - Wood Tile - Cork Tile
Asphalt Tile - Acoustical Tile

H. B. B U C K H A M
INSTALLERS

OF

FIN E

FLOORS

IN

6

? CO.

IOWA FOR OVER

15 YEARS

Offices and Display Room; — Hubbell Building Lobby
D E S M O I N E S , I O WA

Northwestern Banker September 19Ï0

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

IO WA
w as later reorganized and called th e
Security Savings B ank, h ad been in
th e ban k in g business 33 years.

Buys Missouri Bank
Carl J. C halstrom , p resid en t of the
P rim g h a r Savings B ank u n til a few
m onths ago, has p u rchased th e Can
ton S tate B ank at Canton, M issouri,
and has tak en possession. A few
m on th s ago, Mr. C halstrom sold his
b an k in g in te re sts in P rim g h a r and a t
Gaza. Mr. C halstrom ’s hom e w as at
Gaza and his fam ily has left Gaza
for th e ir new home.

NE WS

In New Position
H e rb ert H. Kim ball, form erly of Dav
enport, has been placed in charge of
th e new foreign p ro p erty control de
p a rtm e n t of the F ederal R eserve B ank
of New York. In order to take over
the new d ep artm en t w hich num bers
one h u n d red em ployes, Mr. K im ball
resigned as secretary of th e b an k b u t
w ill continue to hold th e office of as
sista n t vice president.
The foreign p ro p erty control de
p a rtm e n t w ill have charge of handling
th e applications u n d er th e U. S. T reas
u ry ’s regulations freezing th e balances

THE SIGN OF SECURITY

of countries invaded by G erm any and
of handling th e inspection of foreign
m ails to determ ine w h eth er dollar se
curities are being sent in contraven
tion of T reasu ry regulations.
The T reasu ry regulations apply to
th e citizens and governm ent of Den
m ark, The N etherlands, N orw ay, Bel
gium , L uxem burg and France.

Contract Awarded
C. C. L arsen and Sons have been
aw arded th e con tract for th e new
Council Bluffs Savings B ank building,
B. A. G ronstal, president, said re 
cently.
F orm al approval of th e L arsen bid,
low est subm itted, took place at a
m eeting of th e board of directors of
th e bank.
C onstruction w ork on the tw o-story
$150,000 building w ill s ta rt im m edi
ately, w ith th e back half of th e build
ing to be com pleted by D ecem ber 15,
1940.
W hen th e back half of the building
is com pleted, th e b ank w ill move into
th e new u n it and dem olition w ill s ta rt
on th e p resen t six-story building.
W hen com pleted in 1941, the tw o
u n its w ill form a single building w ith
m ore floor space th a n is now avail
able in th e old stru ctu re.
T otal cost of th e building and fu r
nishings w ill be $200,000.

Air Conditioned
An air conditioning u n it has been
installed in th e basem ent of th e N o rth 
w estern S tate Bank, O range City, to
keep custom ers and force cool d u ring
th e hot days of sum m er. Cellar en
tran ce and one w all h ad to be enlarged
and pushed back so th a t th e big piece
of equipm ent could be eased into th e
basem ent.

Land Bank Officer Dies

A r e pr od u ct io n of th e 84- fo ot n eon t o w e r s i g n s er ect ed
on h i g h w a y s a p p r o a c h in g D e s M o i n e s

Central Life
A ssurance S ociety (Mutual)
llllllllll

I.....Illllll.... I................................. ............................................................

DES MOINES, IOW A

Northwestern Banker Septem ber 19W

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

llllllllir

M. J. K uhl, Sioux City, tre a su re r
of th e Iow a Jo in t Stock L and B ank
for th e last seven years, died u nex
pectedly in an In te rn a tio n a l Falls,
M innesota, hospital following an op
eration.
Mr. K uhl had been in failing h ealth
for th e last several w eeks. He and
m em bers of his fam ily w ere on a va
cation trip w hen he w as strick en and
tak en to th e hospital.
Mr. K uhl w as a v eteran employe
WANT TO BUY—Controlling stock or
minority interest in north central or
north eastern Iowa bank. Address C. W.
care of Northwestern Banker, Des
Moines, Iow a.

79
•

of th e Jam es F. Toy b an k in g in te r
ests, hav in g fo rm erly been cash ier of
th e F ir s t N ational B ank a t Osmond,
N ebraska, for ab o u t tw e n ty y ears be
fore com ing to Sioux City in 1933.

I O W A

N E W S

•

th ro u g h th is b an k th e previous a r
ran g em en t w as n o t satisfactory and
th e m ove w as m ade to give m ore
w orking space.

Resigns
Examiner Resigns
E d w in C. M anning, fo rm er m ayor
of O ttum w a, h as resig n ed as ex am in er
in charge of th e closed b anks a t Fairfield for th e sta te b an k in g d ep artm en t,
sta te officials disclosed. He is u n d e r
stood to have en tered p riv a te em ploy
m ent.

Jo h n T. Schultz, teller in th e F a rm 
ers Savings Bank, Rem sen, for th e
p a st m ore th a n sixteen y ears of fa ith 
ful service, resigned his position last
m onth. Mr. Schultz states he has no
definite plans for th e im m ediate fu 
ture.

Select Officers

Remodeled
T he in te rio r of th e M anly S tate
B ank h as underg o n e considerable
change and im provem ent. T he sm all
room s a t th e side of th e v a u lt have
been m ade into one large enough to
accom m odate th e p osting m achines,
th u s g ettin g th em out of th e fro n t
room w h ere th e y cause considerable
congestion and noise.
T he phone
booth h as also been rem oved w hich
helps th e w o rk in g space in th e b an k
as w ell as its appearance.
W ith th e added business from th e
K en sett an d P ly m o u th b ran ch es going

No Longer An
E xperim en t!

Officers of th e F a rm e rs Loan and
T ru st Company, Sioux City, w ith th e

exception of tre a su re r, w ere reelected
by th e new board of directors a t a
m eeting held in th e Toy N ational
B ank building.
R. R. B rubacher, president, received
reelection. H ow ever, th e board chose
a new tre a su re r, J. W illiam V an Dyke,
to replace C. A. Bond, w ho has retire d
afte r approxim ately sixty y ears w ith
th e com pany.
T he o ther reelected officers are Jo h n
W. V an Dyke and E arl A. Hoffman,
vice presidents, and E. H. Spiecker,
secretary. Mr. Hoffman, Mr. Spiecker,
Mr. B rubacher, Jo h n W. V an Dyke
and J. W illiam Van Dyke w ere re 
elected directors by th e stockholders,
w ho w ill benefit th is y ear from a 5

★

ENABLING OUT-OF-TOWN
BANKS TO SERVE
CUSTOMERS BETTER

The system of applying busi
ness principles to farm manage
ment, inaugurated by us more
than 10 years ago, has been
tested in the crucible of time.
Our steadily

growing list

of

clients is the best proof of its
success.

A high degree o f organization and the wide experience o f
fifty years enable The Northern Trust Company to offer
out-of-town banks many helpful services. These include,
among others, the collection o f checks, drafts and other
bills o f exchange, safe-keeping o f securities, investment
advice, and information regarding trust methods and
procedures. A correspondent connection here can be o f
value to you in achieving that completeness o f service which

Farm ers

N a tio n a l
Company
388-396 B ra n d ei s T h eat re Bldg.
Oma ha , N e b r a s k a

Farm Management
"From the Ground Up”

your customers value so highly. Your inquiry is invited.

THE N O RTH ERN
TRUST COMPANY
5 0 S O U T H LA SALLE S T R E E T , C H I C A G O

Member Federal Deposit Insurance Corporation

Northwestern Banker Septem ber 1940

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

80

-•
p er cent dividend w hich w as declared
by th e new board.

Quarterly Meeting
The q u a rte rly m eeting of a regional
clearing house association w as held
at T em plar P a rk recently. A d in n er
w as served in th e dining room. The
association is m ade up of th e b anks
in Clay, D ickinson, Palo Alto and
E m m et counties.
. Those a tten d in g from E sth erv ille
w ere Miss M argaret S taudenbaur, Miss
H azel Ross, Lloyd Jensen, K. J. Mc-

I O W A

N EW S

•

Donald, Miss H elen H artinson, Mrs.
V erm an Sidle, Miss D orothy N ourse,
W ayne Vallie, W. C. C urrell, R obert
K night, D elbert H insch and Jo h n
Raife.

Engagement Announced
A nnouncem ent has been m ade by
Count and Countess Alfonso P. Villa,
N ew port, Rhode Island, of th e en
gagem ent of th e ir second daughter,
Miss Consuelo V. L. Villa, to Jo h n T.
H am ilton II, son of Mr. and Mrs.
Jam es E. H am ilton of Cedar Rapids.

The announcem ent w as m ade by th e
count and countess at a large d inner
p a rty given a t th e ir residence, Fairholme.
Miss Villa, w ho has been a popular
m em ber of the younger set of th e fash
ionable sum m er colony for several
years, atten d ed Miss H e w itt’s finish
ing school in Florence, Italy, and m ade
h er debut at a ball given at F airholm e
by Count and Countess Villa on A u
gust 21, 1936.
Mr. H am ilton prep ared at Pom fret
school at P om fret, Connecticut, and
w as g raduated from P rin ceto n U niver
sity in 1934. He is a m em ber of the
Ivy club and th e R acquet and T ennis
club of New York, th e New York Y acht
club, and the R acquet club of Chi
cago. He is vice p resid en t and di
recto r of the M erchants N ational B ank
in Cedar Rapids.

Business Gains

. . a lw a y s r e a d y to
s h a r e the b e n e fits — ”
If you are interested in agriculture, why not have a Chicago
correspondent that speaks your language and knows your
problems?
Why not be represented in the heart of the great middlewestern market — inside the Union Stock Y ard s? Live
Stock National’s specialized experience offers special cor
respondent advantages.
For 72 years, we have been in close and constant touch
with leading agricultural interests . . . and are ahvays r ea d y
to share the benefits o j this association w ith those we serve.

May we tell y o u about the “ plus” values nearly 500 agri

Check tran sactio n s th ro u g h Des
Moines banks show ed a tw en ty m il
lion dollar increase du rin g th e first
seven m onths of 1940, as com pared
w ith those of th e first seven m onths
of 1939.
The total this year w as $676,211,000,
as com pared w ith $656,117,000 last
year.
O ther figures com piled by the Cham 
b er of Commerce for th e com pared
periods show th a t postal receipts w ent
from $1,718,051 to $1,724,600; new car
and tru c k sales from 4,217 to 4,853,
and electric pow er consum ption, from
50,575,024 to 52,613,305 kilow att hours.

Visiting New York State
H.
L. H orton, p resid en t of th e
Iowa-Des Moines N ational B ank &
T ru st Company, Des Moines, w ith
Mrs. H orton, left last m onth to spend
a m o n th ’s vacation in New Y ork State
w ith Mrs. H o rto n ’s fam ily. I t has
been th e custom for m any y ears for
all the m em bers of Mrs. H o rto n ’s
fam ily to g ath er for one m onth w ith
th e ir p aren ts at th e ir hom e in upper
New York State.

cultural hanks find here?

Excused

live Stock.
National

D c lllk

UNION

ME MB E R

F E D E R A L

STOCK

D E P O S I T

Northwestern Banker September 19W

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

of Chicago

YARDS

I N S U R A N C E

C OR

P O R A T I O N

Jo h n n y played tru a n t from school
one day, and th e following m orning
w as w orried as to how to square h im 
self w ith th e teacher. He decided to
w rite a note of excuse, signing his
m o th er’s nam e, w hich resu lted in the
following: “D ear Teacher: “Please ex
cuse Jo h n n y for being absent yestei’day. I tore m y pants. Y ours truly,
Mrs. Jo nes.”

They Will Attend
the
Convention
NoxHOH t lhhhhhh
P r e s id e n t
I o w a - D e s M o i n e s N a t i o n a l B an k
D es Moines

S.

E.

C O Q U ILLETTE
P r e s id e n t
M e r c h a n t s N a t i o n a l B an k
Cedar R ap in d s

W . H. M I L L E R
V i c e P r e s id e n t
C ity N a t i o n a l Ba nk , C hi cag o
JAM ES SH A W
S haw , M c D e r m o t t & Sparks
D es Moines

First

FRANK FUCHS
A s s i s t a n t C ash ie r
N a t i o n a l Ba nk , St. L o u is


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

W A L T E R B. A L L E N
V i c e P r e s id e n t
C o n t i n e n t a l - I l l i n o i s N a t i o n a l Ba n k ,

C hi ca g o

DELKO BLOEM
V i c e P r e s id e n t
S e c u r i t y N a t i o n a l Ba n k , S io u x Cit y

82

•

Over 1,000 Accounts
T he six b an k s in Sioux City, Iowa,
th a t have in stalled PAYC (pay-as-youcheck) checking accounts system s
w ith in th e p ast y e a r have opened,
together, over 1,000 of th ese new , nom inim um -balance accounts.
I t w as
ju st one y e a r ago w h en th e first PAYC
system w as in stalled in a Sioux City

S in c e

I O W A

N E W S

•

bank. The banks now offering the
plan are as follows: S ecurity N ational,
F irs t N ational, L ivestock N ational,
Toy N ational, W oodbury County N a
tio n al and th e M orningside Savings.
Com bined resources of these banks
is over thirty-one m illion dollars.
T h a t all of these ban k s are genu
inely enth u siastic about the PAYC

1 8 8 1

F. E. DAVENPORT & CO.
Has served the Bankers in rimelock, Safe and Vault Inspection
*
We are p ro u d of this reco rd an d of o u r relatio n s as th e official
experts of T he Iow a B ankers A ssociation
•

Our 24-Hour Continuous Service Guarantees
You Immediate Attention
*
D istrib u to rs of Y A LE & T O W N E M EG. CO.
B ank Locks and D ay P ro te c tio n E q u ip m e n t

F. E. D A V E N P O R T & C O .
O M A H A

THE

CHAMPION
AGENCY
o£ t h e

plan and are w ell pleased a t th e re 
sponse it has received is attested by
th e U nited States Check Book Com
pany, o rig in ato r of th e plan. One
of th e Sioux City banks has opened
over th ree h u n d red PAYC accounts
since N ovem ber, 1939.
D epositors in PAYC accounts come
from every w alk of life, according to
th e Om aha firm. Some people are
d isg ru n tled w ith reg u lar checking sys
tem s and th e service charges in h eren t
in them , w hile oth ers are folks w ho
have nev er had checking accounts be
fore. M any, especially young m en
and wom en, are learning of bank
services for th e first tim e in th e ir
lives.
T he n a tu ra l appeal of the
PAYC account is ap p aren tly bringing
them into th e b ank w here th ey are
being exposed to th e m u ltitude of
services available to everyone. T h at
th is is w ise public relatio n s is cer
tain.
The PAYC plan is the first no-m ini
m um -balance checking account sys
tem to be offered in the m iddlew est.
E ssen tially it operates as follows: The
depositor p urchases a book of checks
for a specific am ount, th is being the
only charge for carry in g th e account.
Thus, he know s exactly w h at each
negotiation is costing him .
A ny
am ount is accepted by th e b ank as an
opening deposit.
T here are now over fifty banks in
Iowa, N ebraska an d South D akota
using th e PAYC plan.

Takes Western Trip
W. H. Tillson, vice presid en t of th e
Cresco U nion Savings Bank, has re 
tu rn e d from a 6,500 m ile trip to th e
Pacific coast. H e and m em bers of
his fam ily visited B ryce Canyon, Zion
P ark , B oulder Dam, th e Redwoods,
Columbia R iver H ighw ay, Yellowstone,
th e Cody exit, Shoshone and th e Black
H ills and th e Bad Lands, b u t he says
“Iow a never looked b e tte r to me th a n
on m y re tu rn . All th a t I saw does not
add up to our corn, hogs, sheep and
cattle, plus a w hole state of fertile
soil.”

Past Presidents

BANKERS LIFE
COMPANY
Des Moines, Iowa
Northwestern Banker Septem ber 19W

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

P a st presid en ts of th e Iow a B ankers
A ssociation plan n in g to a tten d th e
p ast p resid en t and ex-councilm an’s
d inner at th e com ing Iow a convention
are: C. B. Mills, Moline, Illinois,
presid en t 1902-1903; F ra n k E pperson,
F ed eral F a rm M ortgage C orporation,
Omaha, N ebraska, p resid en t 1913-1914;
Iv an O. H asbrouck, Jefferson, p resi
den t 1916-1917; F. B. Y etter, D aven
port, p resid en t 1921-1922; C. C. Jacob-

sen, director. Regional A gricu ltu ral
C redit Division, F a rm C redit A dm in
istratio n , W ashington, D. C., p resid en t
1924-1925; George J. Schaller, presi-.
dent, F ederal R eserve B ank, Chicago,
p resid en t 1928-1929; W. G. C. Bagley,
T re a su re r of State, Des Moines, p resi
d en t 1930-1931; M. W. E llis, president,
F irs t S ecurity B ank & T ru st Company,
C harles City, p resid en t 1936-1937; E.
A. E bersole, cashier, S tate C entral
Savings Bank, K eokuk, p resid en t 19381939.
It is an ticipated, too, th a t J. K.
D em ing of D ubuque, th e oldest living
p ast p resid en t of th e Iow a B ankers
A ssociation, now eighty-tw o y ears of
age, w ill be p re se n t to also tak e his
bow w hen recognized w ith the o th er
p ast p resid en ts by th e p residing of
ficer.

»Joe
H
Something
Here!"

Dear Fred,
This Portsmouth, Iowa, storm has made me
wonder how a like disaster might affect my
bank.

Largest in W est
Iow a now has one of th e largest
floor designing and co n tractin g firms
w est of th e M ississippi river. The
H. B. B uckham & Com pany, Des
Moines, has been specializing in floor
coverings for th e p ast fifteen years,
and last y e a r in stalled m ore th a n a
m illion feet of floor, w all and ceiling
coverings, w hich p u ts th is firm as one
of th e leaders in its field in th e U nited
States.
H. B. B uckham & Com pany are
now en larg in g th e ir w all covering de
p a rtm e n t to handle ex terio r walls, spe
cializing in a fairly new b u t su b sta n 
tial m aterial—porcelain on steel, used
p rin cip ally for store or com m ercial
b uilding fronts.

Insurance Companies paid thousands for
losses in Portsmouth, but at least half of
the total loss was not covered by insur
ance.
How could I loan money to people who
have lost everything and have no chance to
recover?
I was shocked to find I've been missing
a bet.
If all of my clients and policyhold
ers had insurance to value my commissions
would be in four figures.
Then if a storm
struck this community I could safely loan
money to those who would need it and neither
the business of my bank or my town would
suffer.
I'm going after this, Fred.
The Western
Mutual is swell about helping on these
things and their commissions are very
liberal, too.
Yours truly,

Farm W h o ’s W ho
Som ething new in th e w ay of b ank
public relatio n s has recen tly been p re 
pared and d istrib u ted by th e Citizens
N ational B ank, Boone. It is called
th e Boone C ounty F a rm W ho’s Who,
an d in it are listed all th e v arious
farm o rganizations in th e county,
w ith a list of th e officers and d irec
to rs of each. M entioned are the Boone
C ounty A g ricu ltu ral A ssociation, both
boys’ and g irls’ 4-H clubs w ith th e ir
several leaders, C ounty F a rm B ureau,
Sheep M en’s A ssociation, Live Stock
M arketing A ssociation, Beef P ro d u c
e rs ’ A ssociation, C ounty A g ricu ltu ral
C onservation A ssociation, and m any
statistics re la tin g to ag ricu ltu re in
Boone county and th e state of Iowa.
N atu rally , space is reserv ed for p re
sen tin g th e la te st sta te m e n t of condi
tion of th e Citizens N ational, an d a
list of its officers and directors.
You w ould not knock th e jokes we
use
Could you b u t read those we refuse!

Jo e

Legal Reserve
Ron-Assessable
Fire and Auto Policies

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m i t i a

i.

FIRE INSURANCE COMPANY
DES MOINES

Over a Third of a Century of Safety and
Service With Savings
Northwestern Banker Septem ber 1940


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

84

•

I O W A

NEWS

•

A ddress—Dr. P au l F. Cadman, E con
om ist, A m erican B ankers Associa
tion.
U nfinished Business,
j N ew B usiness.
) R eports of Com m ittees,
j E lection and In stallatio n of Officers.

PROGRAMMA. B. A,
CONVENTION
L (C ontinued from page 13)
F oru m Discussion.
^ v C,
TJmfinished B usiness.
Ifew Business.
Itepo rts of Com m ittees.
Election and In stallatio n of Officers.

Trust Division

Savings Division

Monday, September 23, 1940— 2:00 P. M.

Monday, September 23, 1940— 2:00 P. M.

Call to O rder—P resid en t R oland E.
Clark.
A ddress of th e P resident.
The Job A head for T ru st Service—a
sym posium conducted by form er

Cjall to O rder — P re sid e n t A. George
Gilman.
F ree Men M ake a N ation.
A ddress—The P resident.

O

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n

R

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State Secretaries Section

s

Monday, September 23, 1940— 10:00 A. M.

O u t-o f-to w n banks and bankers will find here
c o m p le te b a n k in g fa c ilitie s fo r p ro m p t and
econom ical handling of accounts in Chicago. We
would appreciate the opportunity of serving you.

C i t y N a t io n a l I I a n k
AND

TRUST

2 0 8

S O U T H

COMPANY

of C h i c a g o

L A S A L L E

S T R E E T

{Member Federal Deposit Insurance Corporation)

p residents of the T ru st Division d u r
ing th e p ast decade.
M errell P. Callaway, Vice P resi
dent, G u aranty T ru st Co., of
New York, N ew York, N. Y.
R obertson Griswold, Vice P resi
dent, M aryland T ru st Co., B alti
m ore, M aryland.
Leon M. L ittle, Vice P resident,
New E ngland & T ru st Co., Bos
ton, M assachusetts.
G ilbert T. Stephenson, D irector of
T ru st R esearch, The G raduate
School of B anking.
Sam uel C. W augh, E xecutive Vice
P resid en t and T ru st Officer, The
F irs t T ru st Co., Lincoln, Nebr.
U nfinished Business.
New Business.
Election of Officers.
Installatio n of Officers.

j

Board of Control and G eneral M eet
ing.
Call to O rder—P resid en t C. C. W attam .
A nnual R eport of th e P resident.
A ppointm ent of Com m ittees.
R eports of S tanding Committees:
B anking E ducation and Public Re
lations—Jam es C. Scarboro, C hair
man.
In su ran ce—A rm itt H. Coate, C hair
man.
S tandard F orm s — L ander Hodges,
C hairm an.
State B ankers A ssociation M anage
m en t and Regional C learinghouses—
George M. Starring, C hairm an.
State L egislation — E ugene P. Gum,
C hairm an.
U nfinished Business.
New Business.
E lection and In stallatio n of Officers.
A d journm ent u n til evening session.
Monday, September 23, 1940— 8:00 P. M.

Iowa’s Largest Business School

M any b an k s, b o n d houses, in su ran ce com panies and
o th e r financial in stitu tio n s em p lo y A. I. B. graduates.
W rite o r te le p h o n e w hen you need efficient office em ployes.
Be sure to visit the A. I. B. when in Des Moines
E. O. FENTON, D irector

A M E R IC A N

IN S T IT U T E O F B U S IN E S S
DES MOINES

Tenth and Grand

Northwestern Banker Septem ber 19k0

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

Phone 4-4221

Call to O rder—P resid en t C. C. W attam .
R ound table discussion and ques
tion period on topics of in terest
to secretaries of state b an k ers as
sociations.
O perating P roblem s of State Associa
tions—J. Carlisle Rogers, Secretary
and T reasu rer, F lorida B ankers As
sociation, F irst N ational Bank, Lees
burg, Florida.
In te re st R ates on Savings—P aul W.
A lbright, G eneral Secretary, Savings
B anks A ssociation of th e State of
New York, New York, N. Y.
Public R elations—Claude L. Stout, E x
ecutive Vice P resid en t and Cashier,
P oudre Valley N ational Bank, F o rt
Collins, Colorado.
E x p lan atio n of New Y ork S tate B ank
ers R etirem en t System —Sigourney
B. Rom aine, M anager, New York

85

•
S tate B ankers R etirem en t System ,
New York, N. Y.

New Business Development
Tuesday, September 24, 1940— 9:30 A. M.

Call to O rder—D unlap C. Clark, P re si
dent, A m erican N ational Bank, K al
amazoo, Michigan.
Influence and V alue of B ank Staff
C ontacts—W illiam Pow ers, D irector
of C ustom er R elations, A m erican
B ankers A ssociation.
Discussion.
H ow to S urvey Your T rade A rea—
C. W. Bailey, P resident, F irs t N a
tional B ank, C larksville, T ennessee.
Discussion.
L iquidity of Loans Made to F a rm e rs
—C. C. N eum ann, P resid en t, Ne
b rask a B ankers A ssociation, F a rm 
ers and M erchants N ational Bank,
Oakland, N ebraska.
Discussion.
P an el discussion on R esearch as a B a

I O W A

N EW S

•—

P roductive W ork P lan n in g —E rn e st S.
AVoolley, B ank C onsultant and A nal
yst, New York, N. Y.
Discussion.
R esearch, A nalysis, and B udgetary
Control as an Aid to B ank M anage
m en t — M aurice
L.
B reidenthal,
President, Security N ational Bank,
K ansas City, K ansas.
Discussion.
G reater Efficiency and Increased E a rn 
ings th ro u g h Sim plification of B ank
O perating F o rm s—Louis W. Bishop,
Cashier, State - P lan ters B ank &
T ru st Co., Richm ond, V irginia.
Discussion.

Consumer Credit
Thursday, Sept. 26, 1940— 2:00 P. M.

Call to O rder—W alter B. French, Dep
u ty M anager, A.B.A. C onsum er Cred
it D epartm ent.
A utom obile F inancing — K enton R.
Cravens, Vice P resident, Cleveland
T ru st Company, Cleveland, Ohio.
Discussion.
A Q uestion and A nsw er P anel discus
sion on C onsum er Credit conducted
by AValter B. F ren ch along th e line
of In form ation Please, w ith the fol
low ing P anel m em bers:
K enton R. Cravens.
Jo h n H. Lucas, Vice P resident,

sis for N ew B u sin ess D evelopm ent
in C ountry B an ks conducted by A.

G. B row n, D eputy M anager, A.B.A.,
in charge of A g ricu ltu ral C redit De
p artm e n t, w ith M essrs. Pow ers, Bail
ey, N eu m an n and W illiam J. Kinnamon, C ashier, H u n terd o n C ounty N a
tional B ank, F lem ington, New J e r 
sey, as m em bers of th e Panel.

Real Estate
Tuesday, September 24, 1940— 2:00 P. M.

Call to O rder—Joseph M. Dodge, P re si
dent, The D etroit B ank, D etroit,
M ichigan.
Real E sta te Loans in th e In v estm en t
P ortfolio—Dr. E rn e s t M. F ish er, Di
recto r of R esearch in M ortgage and
Real E sta te F inance, A m erican
B an k ers A ssociation.
A Q uestion and A nsw er P anel dis
cussion on R eal E state Loans con
ducted by Dr. E rn e st M. F ish er
along th e line of In fo rm atio n Please,
w ith th e follow ing P anel m em bers:
F red erick M. Babcock, A ssistan t
A dm in istrato r, F ed eral H ousing
A dm inistration, AVashington, D.
C.
W illiam A. M arcus, Vice P re si
dent, A m erican T ru s t Co., San
Francisco, C alifornia.
E a rl B. Schw ulst, F irs t Vice P re si
dent, T he B ow ery Savings
B ank, N ew York, N. Y.
W illiam W. Slocum, P resid en t,
The U nited Savings B ank of De
tro it, D etroit, M ichigan.

CLOSE

TO

BASI C

C H I C A G O ’S

INDUSTRIES

• Chicago is n o t only the railroad capital of the U nited
States; it is also an im portant center for the production
of railway equipm ent and supplies. Both are fields in
which the American N ational Bank and T ru st Company
has dem onstrated its ability to serve capably and well.
Therefore, if the business problems of your depositors
involve transactions with either of these basic Chicago
industries, we invite you to discuss this institution's
com plete correspondent facilities w ith our officers.

A M ER IC A N N A T IO N A L BANK
AND TRUST COMPANY

Operating Problems
Wednesday, Sept. 25, 1940— 2:00 P. M.

Call to O rder—J. L. D art, Vice P re si
dent, F lo rid a N ational B ank, Ja c k 
sonville, F lorida, P resid en t, A m er
ican In s titu te of B anking Section.

LA

S A L L E

S T R E E T

AT

W A S H I N G T O N

M e m b e r F e d e ra l D e p o s it In s u ra n c e C o rp o ra tio n

C OM M ERCIAL

•

C H EC K IN G

•

SAVINGS

•

TRUSTS

Northwestern Banker Septem ber i9^0

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

86

—• I O W A N E W S
Peoples - P ittsb u rg h T ru s t Co.,
P ittsb u rg h , P ennsylvania.
George A. M acLachlan, Vice P re si
dent, N ational B an k of La
Crosse, La Crosse, W isconsin.

INSTALLMENT LENDING
IS PROFITABLE
(C ontinued from page 17)
E q u ip m en t loans w ill be found a
v ery satisfactory form of installm en t
lending if th e y are p ro perly handled.
Obviously th e p u rch aser of equipm ent
should m ake a su b stan tial dow n pay
m e n t and possess from th e s ta rt an
eq u ity w hich he w ill w ish to protect.
T he term s of th e con tract should be
sufficiently sh o rt th a t th e m onthly
paym ents w ill reduce th e loan m ore

Inaugural Ceremony
Thursday, September 26, 1940

U niv ersity of P en n sy lv an ia Glee Club.
In au g u ra tio n of N ew Officers.
P resen tatio n to R etirin g P resident.
Recital—Jo h n C harles Thom as.

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

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rap id ly th a n depreciation w ill reduce
th e value of th e article purchased. It
has been our experience th a t contracts
covering th e p u rchase of equipm ent
essential to th e operation of a house
hold are paid w ith m ore prom ptness
th a n those rep resen tin g articles w hich
are, to a degree a t least, a lu x u ry for
th e purchaser. C onstant a tten tio n m ust
be given to accounts w hich become de
lin q u en t and th e dealers m u st be re 
quired to tak e up p rom ptly all con
tra c ts w hich fail to respond to collec
tion efforts.
T he field of consum er credit w hich
is receiving th e m ost a tten tio n today
is th a t of autom obile financing. F o r a
tim e m any b an k ers h esitated to en ter
this field because th ey felt th ey w ould
profit m ost by p e rm ittin g b an k ’s funds
to reach th e autom obile in d u stry
th ro u g h th e extension of credit to the
w ell operated finance com panies. The
drastic reduction w hich has tak en
place in th e ra te of in te re st received
on such loans is responsible for th e
decision of m any banks to engage in
lending on autom obiles. It has been
estim ated th a t over one thousand
banks first began m aking autom obile
loans d uring th e last half of 1939. In
response to a recen t questionnaire 82
p er cent of th e rep o rtin g banks in d i
cated th a t th ey w ere m aking autom o
bile loans only to th e individual p u r
chasers, w hile th e rem aining 18 per
cent rep orted th a t th ey w ere endeavor
ing to build th e ir volum e th ro u g h th e
purchase of contracts from dealers.
C onditions prevailing in each individ
ual com m unity seem to determ ine th e
m an n er in w hich th e loans are ob
tained. G enerally speaking, the ban k s
in th e larg er cities, because of th e in 
tense com petition th ey enco u n ter and
th e difficulty experienced in b reaking
dow n relatio n sh ip s th a t dealers al
ready have w ith finance com panies,
p refer to direct th e ir efforts tow ard
th e acquisition of business from th e
individual autom obile purchasers. In
th e sm aller cities an d tow ns w here the
com petition is n ot so keen an d th e
banks m ay be m ore selective in th e
q uality of th e p ap er th ey accept, con
tracts are m ore often obtained th ro u g h
dealers. I t m u st be ad m itted th a t vol
um e m ay be acquired m ore rapidly
th ro u g h dealers th a n by m aking direct
loans. In th e opinion of th e m ajo rity
of ban k ers th is advantage is m ore th a n
offset by th e fact th a t in order to com 
pete w ith th e finance com panies for
dealer business th e banks m u st p ro 
vide th e dealers w ith funds to floor
plan th e ir cars and m eet th e ir o th er
c r e d i t req u irem en ts. U nfortunately
(T u rn to page 88, please)

'

You Will See

hemInDes Moines
M A R V I N R. S E L D E N
V i c e P r e s id e n t M e r c h a n t s N a t i o n a l Ba n k
Cedar R ap id s

CARL T R O U T
A s s i s t a n t V i c e P r e s id e n t
L i v e S t oc k N a t i o n a l Ba n k , C hi ca g o

C H A R L E S C. K U N I N G
A s s i s t a n t V i c e P r e s id e n t
A m e r ic a n N a t i o n a l Ban k, C hi ca g o
W . A. S A W T E L L
P r e s id e n t S t o ck Y ar d s N a t i o n a l Ban k
O m ah a

A. G. S A M
V i c e P r e s i d e n t F i r s t N a t i o n a l Ba n k
S i o u x C ity

R A Y M O N D A. L O C K W O O D
V i c e P r e s id e n t
M a n u f a c t u r e r s T r u s t Co., N e w York

E M I L A. S T A K E
V i c e P r e s id e n t
F i r s t N a t i o n a l B an k , C hi ca go

'Northwestern Banker September 19W

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

I O W A

N E W S

I m ight m ention in passing th a t our
b ank decided at the outset to build its
volum e by m aking loans direct to its
custom ers and we have had no occa
sion to change our policy or reg ret our
decision.
Safe, conservative lending against
autom obiles req u ires th a t each loan be
considered to some ex ten t as a p er
sonal loan to the purchaser. W hile the
value of the autom obile as collateral is
of v ital im portance, it should not be
the sole basis of credit. The ch aracter
of th e applicant and his ability to m eet
th e n ecessary m onthly installm ents
should receive careful consideration.
R epossession and resale is a t best a
salvage activity and one w hich m ay re 
su lt not only in a loss of m oney b ut
good w ill as well. It is generally ac
cented as sound th a t th e p u rch aser

INSTALLMENT LENDING
IS PROFITABLE
(C ontinued from page 86)
m any autom obile dealers cannot be
classed as desirable risk s by accepted
banking standards. Because he is
largely dependent upon th e fo rtu n es
and policies of th e m a n u fa c tu rer w hose
product he handles and because in 
tense com petition involving excessive
trade-in values destroys h is expected
profits, th e autom obile dealer- often
presen ts a credit problem b anks can
well avoid.
It is g enerally conceded th a t volum e
obtained by direct loans is m ore p e r
m an en t th a n business acquired from
dealers. By m aking th e loans direct
a bank m ay be m ore selective in choos
ing th e risk s th ey w ish to accept.

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FIRST

NATI

NAL BANK

IN ST.

OUIS

EXCELLENT MAIL SCHEDULES
BOTH

BY RAIL A N D

TO

SERVE

CORRESPONDENTS'

M EM BER

F E D E R A L D E P O S IT

Northwestern Banker Septem ber 1940

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

A IR

OUR

R EQ U IR EM EN TS

IN S U R A N C E

C O R P O R A T IO N

should pay at least one-third dow n if
he w ishes to extend his obligation over
a period of eighteen m onths or less
and th a t he should pay a t least 40 p er
cent dow n if his con tract involves 24
m onths. Loans m ade ag ain st used cars
are often ju s t as sound as those m ade
in connection w ith new ones. Quite
freq u en tly th e m an w ho purchases a
used car for $300 is b etter qualified to
m eet his m o n th ly in stallm en ts th a n
the one w ho buys a new car involving
a paym ent program u n su ited to his in 
come.
I am sure you will be in terested in
know ing th a t by follow ing the above
policy we have succeeded in develop
ing a satisfactory volum e of autom o
bile business w hich m ay be appraised
as to quality by th e fact th a t we have
had only one repossession p er each
425 loans made.
T here rem ains one im p o rtan t divi
sion of in stallm en t lending for us to
consider. I refer to personal loans. Of
th e various form s of installm en t credit
we have considered, personal loans
rep resen t th e least d ep artu re from
long established banking practice.
B anks for years have been compelled
to m ake a considerable num ber of
sm all loans w hich yielded insufficient
income to ju stify th e ir existence. Plac
ing such loans on an installm en t basis
m akes them not only profitable b u t
satisfactory from a liquidation stan d 
point. P ersonal loans offer an u n p a r
alleled o p p o rtu n ity to build good will
and assist g reatly in rem oving from
th e public m ind the idea th a t banks
are indifferent to th e credit needs of
th e average m an.
It is essential th a t th e applicant for
a personal loan possess good c h aracter
and ability to repay. The m ost p rac
tical y ard stick of ch aracter from a
credit stan d p o in t is the rep u tatio n
w hich a m an bears for th e prom pt p ay
m ent of his obligations. Inform ation
of th is n atu re m ay be easily obtained
from th e various agencies organized
to investigate and rep o rt such m atters.
A bility to repay can be determ ined by
discussing w ith the applicant the rela
tionship betw een his incom e and his
expenditures. W e have found th a t
m any people have a tendency to over
estim ate th e ir ability to rep ay from
income. W hen m aking a personal loan
we u n d ertak e to im press upon our
custom er the im portance of m eeting
his obligation prom ptly, pointing out
th a t he is establishing b ank credit
w hich is a valuable personal asset.
The sig n atu re of a co-m aker m akes
it possible for us to m ake a loan we
could not otherw ise consider b u t w e
have found th a t th e b o rro w er w ho ob-

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1

89

• I O W A N E WS
ta in s a loan based solely on his own
cred it qualifications is m ore likely to
display th e p ro p er a ttitu d e to w ard his
obligation th a n one w ho feels th a t we
tru ste d n o t him b u t th e p erson w ho
signed w ith him . Co-maker loans are
characterized by a n o th e r disadvantage
arisin g from th e fact th a t th e co-m aker
m ay be a su b stan tial custom er of th e
b an k and feel, in th e ev en t he is called
upon to pay th e loan, th a t th e b ank
should not have been in stru m e n ta l in
creatin g a situ atio n w hich resu lted in
a loss to him .
Our belief th a t th ro u g h personal
loans we are re n d erin g a valuable
service to m any credit-w orthy individ
uals to w hom we form erly offered no
cred it facilities has been confirm ed by
records we have k ep t relativ e to th e
source of our business. W e have found
th a t 75 p er cent of our custom ers are
re p e a t borrow ers. In o th er w ords, 75
p er cent of th e individuals w ho apply
fo r personal loans are m en and w om en
w ho have p ro m p tly and successfully
discharged one or m ore obligations by
m eans of re g u la r m o n th ly paym ents
and desire again to borrow on th a t
basis to m eet some unexpected em er
gency or to place them selves in th e
position of a cash b u y er in connection
w ith m erchandise th ey contem plate
purchasing.
As early as M arch 1, 1936, we began
in su rin g th e lives of our personal loan
b o rro w ers u n d e r a policy issued by
one of th e oldest an d m ost responsible
life in su ran ce com panies in A m erica.

•

The life of each borrow er is in sured
for the unpaid balance of his loan and
his fam ily or estate is relieved of all
responsibility in connection w ith his
obligation in ev en t of his death. The
cost is so sm all th a t th e privilege of
obtaining so m uch protection a t such
a low rate, is w elcom ed by th e borrow 
ers w ith o u t exception.
In closing I w ould like to m ake a few
observations concerning th e acquisi
tion of in stallm en t paper. In th e case
of T itle I and equipm ent loans the
dealers offer th e b est field for prom o
tion. T hey m ay be encouraged to con
fine th e ir sales efforts to prospects

w ho appear able to pay and th ey
should be supplied w ith applications,
credit statem en ts and conditional sales
contracts sim ple in form and easy to
use. P rom ptness in considering th e
applications th ey deliver to you and
the absence of delay in rep o rtin g your
decisions w ill do m uch to increase
th e ir satisfaction w ith y o u r service.
T his also applies to autom obile con
tra c ts obtained th ro u g h dealers. A p
plicants for personal and autom obile
loans should be given prom pt and cour
teous atten tio n , w hich w ill m ake them
feel th ey are ju s t as im p o rtan t to the
(T urn to page 91, please)

(Brectings
to
Visiting bankers

D es M oin es B an k
and Trust Co.
Sixth Avenue
Between Locust and W alnut

G. B. Jensen, President
A. W. Crossan, Vice President

Northwestern Banker Septem ber 19^0

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

See Them
at the
Iowa Convention
E. F. B U C K L E Y
V i c e P r e s id e n t
Cen tra l N a t i o n a l Ba nk , D e s M o i n e s

)
À

E. N . V A N H O R N E
E x e c u t i v e V i c e P r e s id e n t
A m e r ic a n N a t i o n a l Ba n k , C hi ca g o

M A X von S C H R A D E R
C ash ie r
U n i o n B a n k & T r u s t Co., O t t u m w a

JACK SPARK S
S ha w , M c D e r m o t t & S pa rk s
D es M oines

\

J. C. T H O M S O N
President
N o r t h w e s t e r n «Bancorporation, M i n n e a p o l i s
r


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

W.

E. B R O C K M A N
V i c e P r e s id e n t
M i d l a n d N a t i o n a l Ba nk , M i n n e a p o l i s

E V E R E T T M. G R I F F I T H
A ssistan t V ice President
I o w a - D e s M o i n e s N a t i o n a l B an k
D es M oines

91

•

INSTALLMENT LENDING
IS PROFITABLE

I O W A

NEWS

*

Claus, w ho is a ssistan t secretary-treas

u re r of the B ankers T ru st Com pany of
Gary, Indiana.

(C ontinued from page 89)
b an k as cu stom ers seeking com m er
cial loans.
In sta llm e n t credit has definitely be
come a b an k in g function. Its value to
ourselves and th e com m unities we
serve w ill depend upon th e intelligence
w ith w hich we ex ten d it. N ow here in
th e b an k are h u m a n relatio n sh ip s so
in tim a te as in th is d ep artm en t. No
one can engage in h an d lin g in sta ll
m e n t loans w ith o u t a feeling of ad m ir
atio n fo r th e in te g rity an d c h aracter
of th e average A m erican m an and
w om an.
I t seem s to m e th a t if I w ere oper
a tin g a b an k in an y size com m unity, I
w ould m ake a v e ry careful and th o r
ough check an d su rv ey to d eterm in e
w h e th e r or n o t an y cred it w o rth y citi
zens of m y com m unity w ere b o rro w 
ing funds from a n y source o th er th a n
m y bank. If I found upon m aking th is
in v estig atio n th a t an y im p o rta n t n u m 
b er of good local people w ere o b tain 
ing F ed eral H ousing T itle I loans,
autom obile loans, eq u ip m en t loans, or
p ersonal loans from a n y outside
source, I w ould certain ly w a n t to con
sider m ost seriously settin g u p in m y
b an k m ach in ery for h an d lin g th ese
types of loans.
I say th ese th in g s for th e tw o re a 
sons w hich I have h ereto fo re stated.
F irst, I w ould w a n t th e good people of
m y co m m unity to feel th a t th e ir b an k
w as equipped an d stood read y to tak e
care of th e ir sound cred it needs w h a t
ever th e ir n a tu re m ig h t be. T his is
v ita lly im p o rta n t if w e a re to re-estab
lish ourselves in th e good w ill of th e
public, an d beyond th a t to aro u se all
of th e people to th e realizatio n th a t
th e ir local b an k is an absolute essen
tial, yes, an indispensable p a rt of
A m erican bu sin ess life. Second, an d
again I re p e a t for em phasis, such op
eratio n s as th ese w hich I hav e m en 
tioned, p ro p erly h an d led w ill u n d o u b t
edly help th e undivided profits in a
su b sta n tia l w ay, th e re b y fulfilling an
obligation w h ich all of us as b an k offi
cers owe to o u r stockholders.

NEWS AND VIEWS
(C ontinued from page 18)
th e board w alk w h ere each y e a r ap 
p ro x im ately 15 m illion v isito rs are en 
tertain ed .
Incidently, th e A ssociation of B ank
W om en do n o t fight am ong them selves
politically as th e y n om inate ju s t one
individual for each office. T he p resi
d en t for n e x t y e a r w ill be E m m a

R ay F. Kauffm an, son of B. F. Kauff
m an, p resid en t of th e B ankers T ru st
C om pany of Des Moines, w ill have his
new book “H u rrican e W ake” on sale
S eptem ber 17th. T he book is being
published by M cM illan Com pany and
is th e sto ry of Mr. K auffm an’s trip
aro u n d th e w orld in a 45 foot sail
boat w hich took him and his compan-

ion th ree and one-half years. Ray
K auffm an’s w ife is th e form er D iana
D avis, d au g h ter of Mr. and Mrs. J.
Stuart D avis. Mr. Davis is A ssociate
editor of th e N o r t h w e s t e r n B a n k e r .
George M alcolm , vice p resid en t of
th e D rovers N ational B ank of Chica
go, took a trip into M ichigan n ot long
ago and h ad postal cards to his friends
all ty p e w ritte n in advance and th e n to
show his increased efficiency he had
the greetings “all ru b b er stam ped and

llllllllilll

MCo n t e y o u r W is e o n m n i t e m # I M

§ |s i
' I I I ¡É 111

DIRECT TO T
»I Prompt

POMT

1

^ D ir e c t to th e p o i n t" b e c a m e
th e F irst W isc o n sin se r res
m M ilw a u k e e co r rospo rufen t
f o r o v e r S 3 p e r c e n t o f u ff
W isc o n sin b a n k s ! E M O L E
s ta te w id e " c o v e r a g e " !

A F irst W isconsin acco u n t is y o u r m aster
key to p ro m p t, efficient collection of
W isconsin checks and drafts. T his hank
is th e largest in th e W isconsin-low aD akota-M innesota area . . . serving m ore
th a n 500 W isconsin co rresp o n d en ts, as
w ell as b a n k s in k ey cities of n e ig h b o r
ing states. Y o u r in q u irie s are invited. A d
dress o u r B anks and B an k ers D ivision.

FIRST

w isr «ss i \
\ ITIOSIL

RESOURCES OVER $260,000,000

SK

Member of the Federal
Deposit Insurance Corporation

OF

lllilli

l||S

Northwestern Banker Septem ber 19W

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

92

•
ev ery th in g ” and th e y said “W e are
having a w onderful trip. Mae and
George M alcolm ”.
The postal card we received w as of
th e Book-Cadillac H otel, D etroit, and
we don’t know w h e th e r th ey w ere h av 
ing a w onderful trip going up and
dow n in th e elevators, hav in g lunch
on th e roof g arden or m ak in g w hoop
ee in th e cocktail lounge. A nyw ay
we are glad to know th a t th ey h ad a
g rand tim e.
R ichard R. R ollin s, vice p resid en t of
the B ankers T ru st Com pany, and R ob

IO WA

NE WS

•

ert, Root, Des Moines rep resen tativ e of

Blair, B onner & Company, have organ
ized a new corporation know n as
Shine, Inc.

The com pany w ill h ire shoe sh in 
ing boys w ho w ill come rig h t to the
offices of business m en in th e city and
do th e ir shining for them at th e ir
desks.
Sim ilar projects are operating in
Chicago and New York, b u t th is is the
first tim e such a plan has been in 
troduced into Des Moines.
“Say nothing, see nothing, hear
n o th in g ” w ill be th e creed of th e shoe

shiners, w hen th ey en ter the p rivate
offices of th e big executives.
The cost of a shine in th e office will
be 15 cents, although coupon books of
$1.25 will be sold w hich w ill be good
for 10 shines. The shine boys w ill all
w ear special m aroon uniform s and
caps like those used by bellboys.
T he officers of Shine, Inc., are Mr.
R ollin s, president; Mr. Root, vice p res
ident; and E llen De France, an em 
ploye of the B ankers T ru st Company,
as secretary. These th ree w ill com
prise the board of directors.
It is understood th a t th e ir business
slogan w ill be tak en from the H arv est
Moon song en titled “Shine On, Shine
On”.

Why, Sam!

P

io n e e r
f it s t Commercial Producer of

H y b r id S eed C o r n
AHEAD

O F THE PARADE

In 1 9 2 6 — O ne H u n d red Iowa fa rm ers p lan ted
P io n e e r and ail o f the seed was p rocessed
in o n e p lan t.
In 1 9 4 0 — O ver 8 5 ,0 0 0 Iow a fa rm ers p lan ted
P io n e e r and in Iow a a lo n e n in e plants w ere
req u ired to p ro cess th e seed — P io n eer is the
first c h o ic e o f Iow a fa rm ers b ecau se o f sou n d
corn b reed in g — c a r e fu l p ro cessin g — and re
sp o n sib le sales p o lic ie s.

P IO N E E R HI-BRED CO RN
COMPANY
DES MOINES. IOWA
G A R S T AND T H O M A S HYBRID CO R N C O M P A N Y
Coon Rapids, Iowa

Northwestern Banker Septem ber 1940

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

B lushing B runette: “Do you believe
in th e th eo ry th a t all b ru n ettes are
knock-kneed?”
Sinful Sam: “D on’t know , les’ see.”

SAFE DEPOSIT PROFITS
(C ontinued from page 21)
excess supply of boxes over the actual
and real needs of th e com m unities
served.
If th e cost of operating these de
p artm en ts w as spread evenly over the
3,242 boxes actually rented, it w ould
resu lt in an average cost of $5.40 per
ren ted box for th e year. The average
ren tal collected on these boxes w as
$3.61 for the year.
H ere are some facts reg ard in g re n t
als of 51 dep artm en ts th ro u g h o u t the
east.
. 76,780
Boxes A vailable
. 48,412
Boxes R ented
P er cent of Boxes R ented . 57%
The rates of re n ta l in these departm ents m ay be sum m arized as follows:
Rate

$2.00
2.50
3.00
3.50
4.00
4.50
5.00
Over $5.00

Bo xes
R ent ed

Pe r Cent
o f Bo xe s
Ren ted

982
1,657
6,793
119
2,506
98
28,350
7,907

2.0
3.4
14.0
.2
5.2
.2
58.6
16.4

48,412

100.0%

It is in terestin g to note th a t 58.6
p er cent of these boxes w ere ren ted
at $5.00, as com pared to 25 per cent
ren ted at a rate low er th a n this.
In 26 of these 51 departm ents, we
have available detailed operating and
cost figures th a t I th in k m ay be of
interest.
(T u rn to page 96, please)


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

94

-•
LEGAL DEPARTMENT
(C ontinued from page 26)
tw een th e taxp ayer and th e person
supported other than a m ere desire to
benefit.

Quite often in vario u s tran sactio n s
b ank ers w ill discover th a t persons
claim ing to re p re se n t certain p rin c i
pals as agents do not re p re se n t them
because th e y are n o n ex isten t or ficti
tious. W hen th is occurs a fte r a con
tra c t is executed m ay th e ag en t be
personally held to th e contract?

I OWA

N E WS

•

Yes. Subject to a few excep tion s in 
volvin g certain special circum stances,
it is gen erally held th at an agent w ho
contracts in the nam e of a n onexisten t
or fictitious purported principal ren
ders h im self p ersonally liable on the
contract so made.

A Georgia b an k er died, leaving as
p a rt of his assets an ap a rtm e n t build
ing there. By his will, th e pro p erty
w ent to his son for life, an d th e re a fter
to his grandchildren. The son, as life
ten an t, in su red th e prem ises against
loss by fire. A fire occurred th a t totally

Specialized Services
fo r

Correspondent Banks

destroyed them . T he son sought to
tre a t w ith and use th e insurance pro
ceeds as his ow n p ro p erty absolutely.
Could he do this?
No. The proceeds of in surance on
a building, taken out by an ow ner of
a life in terest in the property, stand in
the place of th e propei'ty destroyed
and should eith er be used in rebuild
ing or should be held b y the ow ner of
the life estate for the benefit of the
rem ainderm en upon the term in ation
of the life estate. In th e ev en t the
funds are not used in rebuilding, the
life ten a n t is en titled to the in terest
thereon during his life.

M axwell, a banker, carried on him 
self certain in surance th a t provided
for disability benefits and th e w aiver
of prem ium s du rin g disability. Max
w ell becam e involved in an autom obile
accident and w as disabled as a resu lt
of in ju ries received th erein . As an in 
cident to pro cu rin g his in su ran ce bene
fits, he w as exam ined by a doctor for
the in su ran ce com pany. Such doctor
insisted th a t if he w ould go th ro u g h
a m ajor operation, w hich w as som e
w h at risky, he w ould com pletely re 
cover from th e effects of th e accident.
M axwell refused to undergo th e opera
tion and th e insu ran ce com pany re 
fused to accord him fu rth e r benefits
u n d er th e in surance policy. T h ereafter
M axwell sued. Could he recover?
Yes. The cases are in su bstan tial
agreem en t th at an insured, in order to
recover benefits or su ccessfu lly to
claim w aiver of p aym ent of prem ium s,
as provided in an in surance contract
in th e ev en t of h is total d isability, need
not, as a condition, su bm it to a m ajor
operation, or to one in w h ich a p rece
dent, m aterial risk is in volved .

Logilc
W h at is double petunia?

MANUFACTURERS
TRUST COMPANY
Principal Office: 55 BROAD STREET, NEW YORK.
68 C O M P L E T E

BANKING

O FFIC ES

IN G R E A T E R

Member Federal Deposit Insurance Corporation

N orthwestern Banker Septem ber ÍQbO

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

NEW

YORK

W ell, a p etu n ia is a flower like a be
gonia;
A begonia is a m eat like a sausage;
A sausage and b a tte ry is a crime;
M onkeys crim e trees;
T rees a crowd;
A ro o ster crow d in th e m o rning and
m ade a noise;
A noise is on yo u r face like your
eyes;
T he eyes is th e opposite of th e nays;
A horse nays and has a colt;
You get a colt and go to bed and
w ake up in th e m orning w ith double
petunia.

These Men Will Be
In Des Moines
September 9-10-11
A L V I N E. J O H N S O N
P r e s id e n t
L i v e S to ck N a t i o n a l Ba n k , O m ah a

A. T. D O N H O W E
V i c e P r e s id e n t
Cen tra l N a t i o n a l Ba nk , D e s M o i n e s

G E O R G E M. P E T E R S O N
P o l k - P e t e r s o n Corp ora tio n
D es M oines


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

R O L A N D C. I R V I N E
V i c e P r e s id e n t
Chas e N a t i o n a l Ba nk , N e w Yor k C ity
F R E D D. C U M M I N G S
D r o v e r s N a t i o n a l Ba nk , C hi ca go

CHARLES CAREY
A s s i s t a n t C ash ie r
H a r r is T r u s t & S a v i n g s B an k
C hi ca g o

RAY M ILLER
C ash ie r
C a pi t a l C it y S t a t e Ba nk , D e s M o i n e s

96

SAFE DEPOSIT PROFITS
$18,000,000 p e r year
fo r Iow a Livestock
$1,540,000 p e r year
to Iow a w orkers

(C ontinued from page 92)

I. B. A.

These dep artm en ts reflected the fol
low ing com bined figures:
R entals Received
$154,727.04
E xpenses
193,952.89

rec o mme n d s the use of our

N et Loss

OldHomestead
C ontributes to

Io w a’s A g ric u ltu ra l
an d In d u s tria l
S ta b ility

......................$ 39,225.85

The average n et incom e p er ren ted
box w as $5.67, the expense w as $7.11
and th e n et loss w as $1.44.
6 d ep artm en ts had a
profit of
$12,468.24
20 d ep artm en ts had a
loss of ..................... 51,694.09
L eaving a n et loss of

R equest O ld H om estead
m eat fo r y o u r ow n table.

While you’re attending the convention
visit our plant, one of Iowa’s finest
packing plants.

T h e Iow a P a c k in g Co.
Des Moines, Iowa

Specializing
in

SURETY
BONDS

Iowa Bank Agencies Solicited

mUTURL SURETV
comPRnv
OF IOWA
Des M oines, Iowa

Northwestern Banker Septem ber 1940

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

M a r b l e b o a r d b i n d in g w i t h c lo th back. T w o
s e m i- c a r b o n s fu rn is h e d w i t h ea ch book.
375 d u p l ic a t e fo rm s to book.
1 bo ok $3.50

6 b oo ks $16.00

S e n t p re pa id w h e n r e m i t t a n c e in f u ll ac 
c o m p a n i e s order.

L. W. Holley & Sons Company
Complete Bank Outfitters
100 E a s t Grand

D es Moi nes, I ow a

$39,225.85

F u rth e r refinem ent of th e cost of
operating these d ep artm en ts into the
cost of m ain tain in g a box and th e cost
of servicing an e n try reflects the fol
lowing:
The cost of m ain tain in g a box w as
arriv ed at by dividing th e total m ain
tenance cost by th e n um ber of boxes
available w h eth er ren ted or vacant.
T his elem ent of cost varied from 91
cents p er box per y ear to $6.27 and
an arith m etical average of $2.23 per
box p er y ear w as shown.
The cost of servicing an e n try v a r
ied from 24 cents to $1.67. Com bining
these costs in the 26 dep artm en ts and
tre a tin g it as one d ep artm en t resu lts
in an e n try cost of $.414. T here w as
an average of 8.4 en tries per ren ted
box p er y ear or a total average e n try
cost of $3.48. H ence, th e follow ing
average cost per box p er y ear results.
Cost of m ain tain in g a box $2.23
Cost of E n try Service
3.48
A verage A nnual Cost

No. 7-I BA
S A F E T Y D E P O S IT BOX
R EC EIPT BOOKS

T h e fu tu re
is seldom
d a rk fo r th e
m an w ho
alw ays m a in 
tain s a good
a p p earan ce!
Q u a l ity Since 1861

FR A N K E L / S
D ES M O IN E S

▼

$5.71

H ow ever, to recover th e en tire cost,
th e m aintenance cost of u n ren ted
boxes -would have to be absorbed by
th e re n ted boxes and th is w ould in 
crease the above average cost by a n 
o th er $1.50 p er year.
T his raises a question freq u en tly
discussed. Should a charge be m ade
for excess en tries over a m inim um
n u m b er allow ed for th e basic rent? Or
should a basic re n t be set an d th e n
a charge be m ade for each entry?
Such a procedure does not app ear to
us to be u n sound or unreasonable and
a t last places th e cost of service upon
those th a t use it.
Y our p resen t plan of statin g a basic
re n ta l and th en p e rm ittin g unlim ited
access at no ad d itio n al charge is com
p arable to th e situ atio n w e found
ourselves in w hen service charges
w ere originally in stitu te d on sm all
checking accounts. A service charge
of $.50 or $1.00 p er m onth w as m ade

QnicJ&iOSt M E T A L
DESK

C A L E N D A R S

• Create c u s t o m e r g o o d - w i l l and
e s t a b l i s h y e a r ’round “d e s k c o n 
t a c t ” for y o u r firm n am e w i t h
t h e s e a t t r a c t i v e , e a s e l ty p e, m et al
d es k ca l e n d a r s. M a d e in s ev er a l
s i z e s an d s t y l e s .
F o r p r ic e s in
various quantities, w rite:

C. E. ERICKSON CO .
I n c o rp o ra t ed

DES MOINES, IOWA

----------------A

—

97

While at the Convention Ask
the Man at Booth No. 14
(S o u th E n d o f M ezza n in e)
TO E X P L A IN H O W T H E

M im eograph D uplicator
can sa v e m on ey fo r you r hank.

The Office Equipment Co.
418 W . 10th S t.

D es M oines, Iow a

See

the

COM PTOM ETER
BANK

U N IT

at the Convention
Mezzanine Floor

Emil Nelson
FELT & TARRANT MFG. CO.
420 Hubbell Bldg.
Des Moines, Iowa

Have

You

Our

Seen

New

TELLER S CASH RELEA SE
W e also m a k e fo rm s for
every use:
D ep o sit T ickets
C o u n ter C hecks
N otice of R e tu rn Item s
Service C harges
C ollection N otices
S tatem en ts— L e tte rh e ad s
L edger C ards
W rite

The Shelby Salesbook Co.
Shelby, Ohio
or

L. E. G ILB ER T
Representative
421 Flynn Bldg.

Des Moines

against accounts w hose balances fell
below a stated figure; b u t once having
paid th is charge, th e custom er w as
free to draw and deposit as m any
tim es as he w ished w ith no additional
charge. T his has been changed and
th e charge now applied bears a di
rect relation to th e n um ber of checks
handled for th e custom er. Isn ’t it
reasonable to th in k of applying the
sam e principles to Safe Deposit op
erations?
E v ery tim e I h ear a discussion of
a charge for E n try Service, it brings
to m ind an instance th a t occurred in
the safe deposit d ep artm en t of a large
cen trally located P hiladelphia b ank
back in 1924. At th a t tim e, I w as
spending considerable tim e in th is
b ank and th ey m ade one of the large
room s in this d ep artm en t available to
m e for w orking q u arters. P ractically
every day w hen going out for lunch,
I w ould see an elderly gentlem an
com ing into th e departm ent, tak in g
out his box and re tirin g to a booth.
A fter th e lapse of a few m inutes, he
w ould replace the box and leave th e
bank. It aroused m y curiosity. So,
one day I discussed th is gentlem an
w ith th e head of th e d ep artm en t and
inquired w h at his business w as th a t
necessitated reg u lar daily visits to the
departm ent. A pparently, his business
did not necessitate his action b u t th e
d ep artm en t head explained th a t every
w eek or so he w ould come in w ith a
package u n d er his arm and afte r ta k 
ing his box out as usual, leave w ith
th e sam e package, th e an sw er being
th a t he w ould b rin g in a bottle of
liquor periodically and stop in for a
p unch before lunch each day. I am
convinced th is m an w ould have glad
ly paid an ex tra charge for e n try
service.
In conclusion, m ay I sum m arize by
statin g —1. T h at a m inim um ann u al Safe De
posit Box ren tal of $5.00 is indi
cated by these surveys.
2. T h at w ith th is m inim um re n ta l
m any dep artm en ts w ill still fail
to operate at a profit, b u t they
w ill cu rtail th e ir loss.
3. T h at a restrictio n on th e num ber
of en tries to a box w ith o u t a
charge ap p ears reasonable and
has precedence in o th er banking
practices.

Let W o rk D o Y o u r
L etter W o rk
M u ltig rap h in g — M im eographing
A ddressing— M ailing
M any B ank and Investm ent
H ouses o u r clients. P ro m p t
service to o ut of tow n custom ers.

WORK LETTER SERVICE
Youngerman Bldg., Des Moines

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you're hard to fit
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The New
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Wh en You' re in Des Moines
for the Convention
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and Fashion Park Clothes

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Our new process reproduces all
printed forms with photographic
accuracy—no cuts—no danger of
errors —- saves time and money.
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Multigraphing — Mimeographing

In th e course of our experience w ith
banks, we have freq u en tly recom 
m ended th a t th e increase in th e ir safe
deposit rates in su b stan tially every
case has resu lted in an increase in
th e ir incom e even though it a t tim es
reduced the n um ber of boxes ren ted
som ew hat.

Addressing — Mailing
Plans — Copy — Campaigns

DIRECT ADVERTISING, Inc.
707 L ocust S treet
Phone 4-0106
D E S M OINES
B. F. SPR Y, Pres.
S. F. W H ITIN G , Sec.

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S ep tem b er 19W

98

I. B. A. Vice Presidents
We Specialize in

BANKERS BLANKET

and
FORGERY BONDS
Your Inquiries Invited

WITMER-KAUFFMAN
EVANS CO.
(Established 1892)
410 Equitable Bldg.
Des Moines

SPECIALIZING
in

F ull T ruck Coverage
FIR E
CA SU A LTY
SU RETY

Brokerage Business Solicited

Witmer Rumsey Agency
304 Liberty Building
DES MOINES

IOWA

Phone 3-7911

Policyholders Mutual
Casualty Company
Legal Reserve— Maximum Service
H om e O ffice: W est L ib erty, I o w a
B u sin e s s Office: D es M o in e s, I o w a
•

F u ll C overage A u to m o b ile
A ccid en t an d H e a lth
A g e n c y In q u irie s I n v ite d

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S e p t e m b e r lO^O

T hree vice presid en ts of th e In v e st
m en t B ankers A ssociation of A m erica
have been nom inated for reelection
and the tw o o th er vice presidential
nom inees have been chosen from
am ong m em bers of th e com m ittee th a t
is conducting th e public inform ation
program recently in au g u rated by the
association. This m ake-up of the “reg 
u la r” ticket, announced th ro u g h the
Chicago office of th e association, is
consistent w ith th e policy set tw o
m onths ago w hen E m m ett F. Connely w as nom inated for reelection as
president. It is th e first instance in
tw enty-four y ears th a t a presid en t of
th e organization is to succeed him self
and th e com m ittee th a t nom inated
Mr. Connely stated th a t he had been
induced to accept the office a second
tim e in order to assure “co n tin u ity of
th e vigorous ad m in istratio n of the
pro g ram of public inform ation s ta rt
ed th is y ear.” M eanwhile, Mr. Con
nely has tak en a leave of absence
from his own in v estm en t house, the
F irs t of M ichigan C orporation of De
tro it, of w hich he w as president, to
serve as full-tim e ch airm an of the
P ublic In fo rm atio n Comm ittee.
Officers of th e association are nom 
inated by th e board of governors and
elected at th e an n u al convention,
w hich th is y ear is to be held a t H ol
lywood, Florida, D ecem ber 9th to 13th.
N om ination is considered tan tam o u n t
to election since the selections of the
board have alw ays previously been
approved by th e convention.
P re se n t vice p residents w ho have
been n om inated for reelection are:
P aul H. Davis of P aul H. Davis &
Company, Chicago: E d w ard H. H illiard
of J. J. B. H illiard & Son, Louisville;
Joseph P. Ripley of H arrim an, R ipley
& Com pany, Incorporated, New York.
Those nom inated to be vice p resi
dents for th e first tim e are:
Jo h n S. F leek of H ayden, M iller and
Com pany, Cleveland; Jo h n O. Stubbs
of W hiting, W eeks & Stubbs Incorpo
rated, Boston.
T hese m en, the nom inating com
m ittee of the board pointed out, have
been serving as Mr. C onnely’s “cabi
n e t” in carry in g out th e aggressive
and m ilitan t policy in itiated by the
association th is year. Mr. H illiard
and Mr. Ripley w ere m em bers of the
special com m ittee th a t planned and
launched th e public inform ation pro
gram . Mr. F leek and Mr. Stubbs are
m em bers of th e com m ittee th a t is re 
sponsible for its operation, and Mr.
Davis w as chairm an of th e national
com m ittee of sponsors th a t raised th e
funds to c arry it out.

J lo w

e d i Q o d i

Our policy provides a maximum
assessment of 2 /z % in Zones
One and Two— and 3 Yz % in
Zone Three (W estern Iow a).

Hawkeye Mutual Hail
Insurance Association
Fort

C arver B ld g .

D odge,

Iowa

A C om plete
K it of T o o ls
Participating, Non-participat
ing, Juvenile, Annual and Sin
gle Premium Annuities— Every
thing that any good company
has, and several contracts that
many companies do not have.
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A ttractive
ers

openings

in s m a l l e r

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bank

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Equitable Life Insurance
Company of Iowa
GRADY V. FORT
General Agent
Des Moines, Iowa

l.?icw n H o te l
KEOSAUQUA

at

FOURTH

DES MOINES

244 Rooms
$2.00 to $3.00
«

Coffee Shoppe—-Garage

They W ill Attend
the
Iowa Convention

C. L. F R E D R I C K S E N
P r e s id e n t
L iv e S to ck N a tio n a l B an k , S io u x C ity

F. M . H A M P T O N
C en tral H a n o v er B a n k & T r u s t Co.
N e w Y ork

E L L SW O R T H M O SER
E x e c u tiv e V ic e P r e s id e n t
U n ite d S ta te s N a tio n a l B an k , O m aha

R. L. D U N L A P
A s s is t a n t V ic e P r e s id e n t
C om m erce T ru st C om pan y, K a n sa s C ity

SiSfllli
9
'

a

BEN

S. S U M M E R W I L L
P r e s id e n t
I o w a S ta te B an k & T ru st C om pan y, I o w a C ity


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E U G E N E M cG U IR E
M cG u ire, W e lc h & C om pan y
D e s M o in e s

L O U IS JA C O B Y
C h a se N a tio n a l B a n k , N e w Y ork

100

•

Mid-Year Review
C om m enting on th e m unicipal bond
situation, H alsey, S tu a rt & Company,
Inc., in its M id-Year R e v ie w of the
M unicipal B ond M arket, states th a t
m ost of th e ground lost in th e recen t
price decline has since been regained.
“The recen t drop in th e price level,”

Y o u S u r e ly C an
A ffo r d

À

A c c id e n t I n s u r a n c e

§

at

i

A c tu a l C ost

$ 2 .0 0 to JAN. 1, 1941
$ 5 ,0 0 0 a c c id e n t a l d e a th
$ 2 5 .0 0 p e r w eek

W rite

C. C. Chase— LS.T.M .A .
807 Fleming Bldg.
Des Moines, Iowa

%

X

Best wishes for

a successful
convention

HOTEL FORT

DES MOINES
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S e p t e m b e r 19'tO

I O W A

N E W S

•

th e R eview states, “w as to some ex
te n t m ore a p p aren t th a n real, for
liquidation at th e low point w as com 
p arativ ely m inor and quotations w ere
often nom inal, actual offerings in any
q u a n tity failing to appear w ith bona
fide bids. Reflecting some an ticip a
tion of dem and for cash on th e p a rt
of b anks and large corporate buyers
to finance expansion of in v en to ry or
p la n t grow ing out of the governm ent
defense program , th e re has been
some contraction of buying of sh o rt
m atu rities w ith re su lta n t w ider price
fluctuations in th is classification th a n
am ong longer term issues. In part,
th is m erely reflects th e fact, how ever,
th a t short-term s, because of th e long
continued heavy dem and for such is
sues, achieved disproportionately high
levels and w ere th u s m ore vulnerable
to change.”
R eferrin g to th e effects of the w ar
developm ents, th e R eview continues,
“events abroad have n a tu ra lly been
m irro red in th e price tren d of the
m unicipal bond m arket. In view of
th e unprecedented ch aracter of such
developm ents and th e incalculable
long-term results, it is im perative
th a t th e m ark et stood its ground as
firm ly as it did. T h at th e re w ere no
w ide fluctuations and so little liquida
tion ap pears to reflect an increasing
im m u n ity to shocks on th e p a rt of
A m erican investors, likew ise the
grow ing realization th a t w h atev er the
outcom e abroad, th ere is no safer
m edium for th e em ploym ent of su r
plus funds th a n carefully chosen tax
secured obligations of A m erican m u
nicipalities.
“Beyond th e im m ediate rep ercu s
sions of th e w ar news, certain longer
range developm ents in th e m unicipal
bond m ark et appear inevitable. Al
read y new taxes are in effect and ad
ditional levies in prospect, th e effects
of w hich can h ard ly fail to increase
th e dem and for ta x exem pt securities.
A second developm ent resu ltin g from
th e siphoning of a still larg er p e r
centage of national incom e into gov
ern m en t hands, for defense m easures,
is likely to be, if n ot actual c u rta il
m en t in m unicipal ex penditures at
least no su b stan tial additions, w ith
re su ltin g continuance of th e recently
existing inadequate supply of new
m unicipal offerings.
“To these factors m ust also be
added th e unprecedented to tal of u n 
em ployed reserves w hich because of
th e recen tly p revailing un certain ties
and restrictio n s have been unable or
u nw illing to find em ploym ent. W ith
th e new in tern atio n al com plexities, it
seem s unlikely th a t th is situ atio n will

be relieved—in fact, it m ay be fu r
th e r aggravated. Thus, so far as the
effects of th e over-supply of funds
against an under-supply of acceptable

M E R CMUTUAL
HANTS

B O N D IN G
COMPANY
Incorporated 1933

H o m e Office
V A L L E Y B A N K B U IL D IN G

Des Moines, Iowa

•

•

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

•

•

W rite to

E. H. W ARNER
S ecr eta ry and M a n a g er

KO CH B R O TH ER S

PRIMERS - BOOKBinDERS - OFFICE OUTFITTERS
STRTI0I1ERS - B US I n ESS IDRCHinES

GRflflD DVEfl UE AT FOURTH

101

• I OWA
in v estm en ts is concerned, little relief
ap p ears im m ediately in prospect.
“W h atev er m ay be th e long-range
im plications of th e frig h tfu l d e stru c 
tio n of m en and m aterials abroad—
and it m u st be ad m itted th a t re g a rd 
less of w ho w ins, th e fu rth e r r e 
m oved outlook is d istu rb in g —th e fact
rem ain s th a t th e n e a r te rm re su lts
can h a rd ly be such as to change m a
te ria lly th e price stru c tu re of th e
high-grade m unicipal bond m arket.
W h atev er change th e re m ay be m ay
as easily be for th e b etter, price-wise,
as for th e w orse. W ith some reduction
in new issues probable, little red u c
tio n in th e existing volum e of idle
funds now in sight, and increased
taxes a certain ty , th e re ap p ears good
grounds for th e view point th a t th e
price level should a t least be well
m ain tain ed .”

American National, Chicago
Loans and discounts of th e A m eri
can N ational B ank and T ru st Com
p an y of Chicago increased $2,724,000
d u rin g th e first half of 1940, reach in g
a to tal of $19,681,287 on Ju n e 29th,
as show n on th e sta te m e n t of condi
tion published in response to th e call
of the C om ptroller of C urrency.
D eposits to taled $69,160,944 on th e
Ju n e 29th statem en t, com pared to
$67,633,535 on M arch 26th, and $62,622,135 a y ear ago. Cash on Ju n e 29th
to taled $26,322,636, com pared to $29,144,183 a t th e beginning of th e year,
a decrease approxim ately equal to th e
increase in loans and discounts. In 
v estm en ts in U nited States gavernm en t securities decreased from $14,568,796 to $12,910,565 d u rin g th e first
half of th e year, w hile holdings of
m unicipal and o th er securities in 
creased from $12,896,817 to $14,402,923.
U ndivided profits increased from
$554,030 to $651,588 in th e six m onths,
w hile reserv es show ed an increase
from $871,618 to $921,133. An increase
of $40,000 in th e p re fe rred stock re 
tire m e n t fund w as also indicated, th e
to tal in th is fund being $140,000 on
Ju n e 29th ag ain st a total of $600,000
p referred outstanding.

70 Years of Service
Jo h n F. F laacke, a ssista n t secretary
of Chem ical B ank & T ru st Company,
recen tly began his sev en tieth y e a r of
continuous service w ith th e bank. In
po in t of service, he is th e dean of
N ew Y ork b an k ers and as far as is
know n, for length of continuous serv 
ice w ith one in stitu tio n he holds th e
record for th e en tire country.
Mr. F laack e w as b orn in New York
City on A ugust 22, 1855. He entered

N E WS •

th e b an k ’s em ploy on Ju ly 12, 1871,
d u rin g the presidency of Jo h n Quen
tin Jones, and has served u n d er seven
of th e ten p residents w hich th e bank
has had in its 116 y ears of existence.
Mr. F laacke w as one of th e organ
izers of th e B ank C lerks’ B uilding &
L oan Com pany in 1890 and w as also
active in organizing th e New York
C hapter of th e A m erican In stitu te of
B anking, of w hich he w as th e first
treasu rer.

Northern Trust, Chicago
W ith deposits at an all tim e high
of $378,573,000, T he N o rth ern T ru st
Company, Chicago, issued its half-year
statem en t at th e call for Ju n e 29 fig
ures. Loans have increased to $39,373,000'. Savings deposits exceed $80,413,000 w hile cash and due from banks
stand at $161,524,000. Total resources
are up $39,471,000 from th e M arch
figures to $403,276,000.

m anual continues. “So far as a great
m ajority of banks is concerned th e
regional clearinghouse association is
th e logical agency for prom oting the
observance of sound b anking prac
tices. T hrough an organization of
th is type th e b ank ers in a local trad e
area having problem s and operating
conditions in common m ay sit down

GREETIN GS!
. . . and a hearty welcome
to visitors to the Iowa
Bankers A sso ciatio n
Convention

GEORGE McCLAREY
NORRIS F. CROSBY
TOM CARRON
PAUL DEAN

Clearinghouse Manual
E xtensive developm ent of regional
clearinghouse associations for co untry
b anks as a m eans of prom oting b ank
cooperation and solving local b a n k 
ing problem s is urged in a m anual
of clearing house organization m ade
public by th e B ank M anagem ent Com
m ission of th e A m erican B ankers
Association.
The m anual describes th e origin
and grow th of regional clearinghouse
associations and points out th a t th e
n u m ber of th ese organizations has
increased from one in 1927 to 287 as
of Ju n e 30, 1940.
“A regional clearinghouse associa
tion is a simple, feasible, practical and
profitable organization to prom ote
and stim ulate b an k er cooperation and
to m ake it effective,” th e m anual de
clares. “T hrough it b anking can be
m ade safe, sound and profitable. Its
p otential and active usefulness is u n 
bounded in m eeting b ank problem s
and new conditions.
T hrough it
sound b anking policies and principles
can be tran slated into practice.
“N ational and state ban k ers asso
ciations m ay develop b e tte r b anking
procedures, b u t unless these p rin 
ciples are actually p u t into operation
everyw here we fall sh o rt of th e de
sired goal in b ank m anagem ent,” th e

FIN A N C IA L

A D V ER T ISIN G

D . R . W E S S L IN G . P R E S ID E N T

FOR

A M E R I C A N

LITHOGRAPHING
and

Printing Company

BANK

STATIONERS

DES M O I N E S , I O W A
Third and Keosauqua Way

EMPLOYERS
MUTUAL
CASUALTY COMPANY
DES MOINES
An Agency Company — Assets Over $4,000,000

• Automobile Insurance
• Workmen’s Compensation
General Liability
• Elevator Insurance
• Plate Glass Insurance

BANKS

AND

TRUST

COIVI P A N I E S

2 S £,± Vh l io í)l£ í, ú iOCVCl
Northwestern Banker Septem ber 19W


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

102

. S A V I N G S AND L OAN .
together, w ork out a solution for each
problem and tak e the necessary steps
to p u t th e ir conclusions into practice
in all th e in stitu tio n s in th a t area.”
The m anual p resen ts in detail th e
m an n er in w hich regional clearin g 
house associations are organized and
outlines 21 b an k in g problem s w hich
can be solved th ro u g h local coopera
tion am ong banks. T hese problem s
rang e from m ethods of analyzing
banking costs and au d itin g proce
dures to questions concerning ta x a 
tion and ad v ertisin g m ethods.

First Six Months
D uring th e first six m onths of th e
y ear approxim ately $457,000,000 flowed
from savings, building and loan asso
ciations back to the people w ho have
been p u ttin g th e m oney into these in 
stitu tions, th e U nited States Savings
and L oan League estim ates. W hile
new m oney w as being invested a t th e
ra te of about $2.00 for every $1.00 w ith 
draw n, m illions of shareholders w ere
reap in g th e rew ards of th e ir th rift by
h aving these funds to m eet th e ir em er

Federal Home Loan Bank of Des Moines
DES M O IN ES, IO W A

STATEMENT OF CONDITION IULY 31, 1940
R ESO U R C ES
A d v a n ce s to M e m b e r s ...................................................................................................... $14,507,062.50
' ’• S . G overn m en t O b lig a tio n s and S ecu rities G u aran teed by U . S ................
1,367,000.00
A ccru ed I n te r e s t R e c e iv a b le ...............................................................................................
45,750.25
D eferred C h arges .................................................................
.
17 71611

cash ............................................................ 3,117:294:77

$19,054,823.63
L IA B IL IT IE S
M em b ers’ S tock S u b s c r ip tio n ..........................................................................................$ 2,523,200.00
G overn m en t S tock S u b s c r i p t s ......................................................................................
7,394,900.00
^D ebentures O u tsta n d in g ......................................................
7 cnn non on
’ 1 250*00
P r em iu m s on D eb en tu res .......................................................................... . ! ! ! ! . . !
D ep o sits ■ • ; • • • • • • • • • ....................................................................................................i
O lO U O S^
A ccrued I n te rest P a y a b le ...............................................................................
3 q5 , 8
S u r p lu s :
R eserves ............................................................................................... $471 571.38
U n d ivid ed P r o fits ................................................................... 207,’402.’95
678,974.33
$19,054,823.63
P a r tic ip a tio n in $48,500,000 con solid ated F ed eral H om e L oan B an k d eb en tu res o u t
s ta n d in g , w h ich a re th e jo in t and sev era l o b lig a tio n s o f th e tw e lv e F ed era l H om e L oan
B an k s.

S in c e

1878

LIBERAL EARNINGS
with
SAFETY

PROTECTED
EARNINGS
F irst class p ro p e rtie s safe
g u ard p re se n t a n d fu tu re
earnings for investor-m em 
b ers of th e

P o lk
Statement on request

co un ty

FED ERA L

W a t e r lo o

S A V IN G S &

B u i l d i n g a nd L o a n

LO A N A SSN .

Association

A ssets $ 1 ,5 3 0 ,0 0 0

East Fifth at Lafayette

WATERLOO
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IOWA
S e p t e m b e r 1940

M em b er F e d e ra l
B a n k S y stem

511 Seventh St.
DES MOINES

gencies, or as capital to take advan
tage of business opportunities and to
m ake dow n p ay m en ts on homes.
George W. AVest, A tlanta, president
of th e League, said th a t some $407,000,000 of th e total w hich savings and
investing m em bers received from J a n 
u a ry th ro u g h Ju n e rep resen ted m oney
actually paid in, w hile about $40,000,000 rep resen ted dividends paid th e
first of th e y ear on savings and loan
lum p-sum investm ents. Some $10,000,000 is estim ated to re p re se n t cash
loans obtained on security of share
accounts, w hich device is freq u en tly
used instead of w ith d raw al to p rev en t
in te rru p tio n s of system atic saving pro
gram s.
T he League presid en t pointed out
th at m uch of th e capital w hich people
w ith d rew from th e ir savings and loan
associations rep resen ted only a por
tion of th e m oney th ey had invested
there, d em o n stratin g th e com plete con
fidence of th e sh areholder in th is type
of investm ent. The ratio of tu rn o v er
is about th a t of norm al tim es as it has
been for several years, Mr. W est said.
N early a th ird of all th e cash paid out
w as in Jan u ary , th e custom ary m onth
of changes in investm ents. The am ount
w as cut about in half th e n ex t m onth,
rose slightly for th e n ex t tw o and th en
sta rte d to decline again.
Volume of sh are capital re tire d d u r
ing th e first six m onths of the y ear
w as increased by several m illion dol
lars of funds invested in the associa
tions by th e U nited States T reasu ry
since 1934, and now rapidly being paid
back because of the steady inflow of
new fu n d s from the public and be
cause of the T re a su ry ’s needs.

T

1

Catalog of Theses
A catalog of theses w ritte n by
g rad u ates of The G raduate School of
B anking, educational arm of the A m er
ican B ankers A ssociation for bank of
ficers, has been p repared and is avail
able for distribution, it is announced
by Dr. H arold Stonier, director of The
G raduate School of B anking and ex
ecutive m anager of th e A.B.A.
The catalog is a cum ulative list
ing of selected theses p repared by
G.S.B. grad u ates of th e classes of 193740, inclusive. It lists th e theses b oth
according to title and to subject m at
ter. M any requests have come to The
G raduate School of B anking for in 
form ation concerning th e theses, to
g eth er w ith req u ests for th e ir use,
Dr. S tonier said. The catalog has
been p rep ared in response to these
requests, and th e theses m ay be bor
row ed u n d er conditions specified by
th e L ib rary of th e A m erican B ankers
Association.

}

R e c e n t D e v e lo p m e n t s
In

Commercial B a n k

P o lic y

Excerpts from a Lecture by Walter Lichtenstein, Vice President of the First
National Bank, Chicago, Before the Recent Graduate
School of Savings and Loan

U RIN G th e p ast few y ears it w as
found in p ractice th a t th e re w ere
dem ands for cred it for a longer
period of tim e th a n com m ercial banks
h ad been in th e h ab it of m aking, and
w hich at th e sam e tim e w ere n o t of a
type or kind to ju stify th e issue of
secu rities to m eet th e need. T h a t is,
dem ands arose for cred it w hich could
n o t be m et by in v estm en t b an k ers and
could n o t be filled by com m ercial b a n k 
ers, if th e y w ere to follow th e old o rth 
odox theory, largely evolved in G reat
B ritain in th e 19th cen tu ry , th a t th e
assets of com m ercial b an k s should
consist chiefly of sh o rt term , self-liqui
d atin g loans. Of course, Dr. M oulton
show ed long ago th a t th e idea of short,
self-liquidating loans w as m ore tru e in
th eo ry th a n in practice, for A m erican
banks, even before th e W orld W ar,
w ere in th e h ab it of m aking loans th a t
w ere n om inally of sh o rt term , b u t
w hich v ery freq u en tly w ere not repaid,
and w ere not expected to be repaid,
for a n u m b er of years. Or even in
those cases w h ere th e y w ere rep aid to
one bank, it w as done by a so rt of
revolving system ; th a t is, th e borro w er
did business w ith a n u m b er of banks,
and w h en at th e end of six m onths he
h ad to rep ay B ank A, he did so by b o r
row ing from B ank B, or he sold sh o rt
te rm com m ercial p ap er to a com m er
cial p ap er broker. B anks also had
been in th e h a b it of m aking m ortgage
loans w ith m a tu ritie s up to five years,
b u t th e th e o ry in those in stan ces w as
alw ays th a t these m ight be sold to an
in su ran ce com pany or a tr u s t estate,
ju s t as a bond of long m a tu rity w as
supposed to have a m ark et, so th a t in
case of need th e bonds could be sold
and converted into cash.
The q uestion m ight be asked, on th e
o th er h and, w hy, if th e com m ercial
b an k s could no longer do u n d e rw rit
ing, w as it not perfectly feasible to go
to th e in v estm en t b anker. I t was, and
it is, b u t even in th e days before the
Securities and E xchange Commission,
th e re w ere ce rta in fairly heavy ex

D

penses connected w ith the issuing of
securities, and, w ith o u t going into de
tails, an inv estm en t b an k er could h a rd 
ly afford to handle a relatively sm all
loan. F u rth erm o re, un d er p resen t day
req u irem en ts of reg istratio n , th e ex
penses involved in issuing securities
have been considerably increased, and
for reasons into w hich I need not en ter
here, in v estm en t ban k ers are not like
ly to handle loans unless th ey are of
considerable size and are capable of
ra th e r w ide distribution. It is as a re 
sult of all th is th a t th e com m ercial
b anks had to step into th e picture. In
consequence of am endm ents to th e
F ederal R eserve act, culm inating in
the b an king act of 1935, banks can now
in case of need rediscount long term
loans as w ell as sh o rt term loans at theF ederal R eserve banks, w hich form er
ly w as not th e case. F u rth erm o re,
w here loans are of sufficient size to
ju stify an issue of securities, corporate
officials and inv estm en t ban k ers m ight
at tim es hesitate to subject them selves
to th e liabilities provided in th e secu
rities act of 1933. So at first some
b anks and gradually m ore and m ore
began to m ake serial loans; th a t is,
loans extending for a period of usually
not m ore th a n five years, and w hich
th e b ank w ould carry as a loan in its
ow n portfolio.
The possibility of carry in g a long
te rm loan w as also increased by a
change of b an k exam ination proce
dure. It had been th e practice of F ed 
eral and state b ank exam iners to clas
sify all loans th a t w ere not paid w ith 
in a relativ ely sh o rt tim e, say w ith in a
year, as being “slow ” loans, or even
worse. B ut by an agreem ent, arriv ed
a t com paratively recen tly by the
Com ptroller of th e Currency, th e Sec
re ta ry of th e T reasury, th e B oard of
G overnors of th e F ed eral R eserve Sys
tem , as w ell as certain o th er F ederal
and n ational b ank supervising a u th o ri
ties, th e classification of loans has now
been changed and any loans, reg ard 
less of th e length of m atu rity , th e re 

p aym ent of w hich seem s reasonably
sure, are not h enceforth to be classified
separately in th e exam ination report.
Bands need n ot henceforth set up any
reserve against such loans, no m atter
w hen th ey fall due, nor w ill th ey be
subject to criticism by th e exam ining
auth o rities in connection w ith any
loans so grouped. You can readily see
how th e w hole psychology of th e
banks w ill have changed as a re su lt of
such alteratio n s in exam ination proce
dure. For, a fter all, even th e largest
and best m anaged banks are v ery sus
ceptible to criticism by exam ining au 
thorities, and w h at is tru e of th e larger
banks is even m ore so in th e case of
sm all banks w hich m ay feel th e neces
sity of tak in g every h in t from an ex
am iner as a com m and from above.
L et us now look a little m ore closely
into th e w hole problem of these term
loans. C ertainly th ere is m uch m ore
risk involved in th em th a n th ere was,
or is, in th e ord in ary so-called sh o rt
term loan, for, after all, if th e lender
binds him self not to call for repaym ent
of th e loan except after a given n u m 
ber of years, he m u st face th e fact th a t
w ith in th a t tim e m uch m ay happen to
change th e m anagem ent of th e busi
ness, or th e m ark ets upon w hich such
business depends. A successful corpo
ratio n u n d er sound leadership m ay
rap id ly become an unsound risk u nder
on the public m ark et if a b an k er feels
poor m anagem ent. Bonds can be sold
th ere is to be a change of conditions,
b u t in th e v ery n atu re of things, a
long term loan is not m arketable, for
rem em ber th a t th e com m ercial b ank
u n d er p resen t law s is not allowed to
sell th e loans it has m ade to o thers—
th a t w ould be in v estm en t banking.
T he only seem ing exception is in those
instances w here a te rm loan required
by th e borrow er is too large for one
ban k to handle; th en th e loan m ay be
divided am ong several banks. W here
a loan is so split, th e b an k er m ust not
do an y th in g w hich w ould p u t him in
th e position of having sold a portion of
N o rth w estern Banker


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Federal Reserve Bank of St. Louis

S e p t e m b e r 19^0

104

S A V I N G S AND LOAN
th e loan to an o th er banker, and he
m ust see to it th a t th e loan is not so
issued as to m ake it a m arketable se
curity.
Mr. E d w ard E. Brow n, p resid en t of
The F irs t N ational B ank of Chicago,
the b ank w ith w hich I h appen to be
connected, w rote an article on this sub
ject and in conclusion I m ay quote
from him as to certain o th er factors:
“In te re st rates on serial loans m ay
be uniform for all m atu rities, b u t g en
erally th ey are m ade on a sliding scale,
w ith h ig h er rates for th e later m a tu ri
ties. In all cases th e borro w er should
have th e rig h t to pay off all or any
p a rt of the loan a t any time. A sm all
penalty, m uch less th a n is generally
exacted in th e case of a called bond,

S A F E T Y IN
INVESTMENT
A ccounts In su re d Up T o
$5 ,0 0 0 .00

T_ 2?
iFFm
FeEri a l S a v in cs
ed
and

Loan A ssociation
Or St. P a u l

350 Cedar St.

St. Paul, Minn.

______ H O M E ____
FEDERAL SAVINGS

AND LOAN ASSOCIATION
OF DES MOINES
— o u r F e d e r a lly I n s u r e d u p to
$ 5 , 0 0 0 s a v in g s a c c o u n ts a r e
th e s o lu t io n to y o u r in v e s t 
m ent
and
tr u st
p r o b le m s .
C u rren t d iv id e n d 3 1 4 p e r c e n t.

Sta tem en t on request.

904 Grand Avenue
Des Moines, lovva

ASSETS O VER
$ 1, 2 0 0 , 0 0 0 .0 0

r

,.,if c U N I T » B a f r

ied era l Savings
AND

LOAN

ASSOCIATION

OF DES M O IN ES
216 ülli -treel

l'lionr I.5S2I

Northwestern Banker September

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Federal Reserve Bank of St. Louis

should be required. O therw ise th e bor
row er, if his business goes well, is apt
to find it profitable to borrow on a c u r
re n t b ank loan, to m eet his m atu rities
as th ey get w ith in six m o n th ’s or a
y e a r’s distance.
“A serial loan m atu rin g in equal in 
stallm ents in one to five years has an
average m atu rity of th ree years. If a
b ank made an equal am ount of such
loans for five consecutive years, the
average m a tu rity of its portfolio on
th is class of loans w ould be 18 m onths.
C onsidering th a t the rates of in terest
on such loans average at least tw ice as
high as the rate on prim e six m o n th s’
loans, this is a sh o rt enough average
m a tu rity to protect a bank against
serious loss should th ere be a sharp
rise in the general level of in terest
rates. In this respect such loans are
far su p erior to long term bonds for a
b a n k ’s inv estm en t w here a consider
able rise in the in te re st level w ould re 
su lt in a heavy price decline in the
bonds, no m atter how sound they
m ight be. The in terest rates on a
serial loan of the highest class will
generally average betw een 3 and 4 per
cent over all m aturities, w hich is a
m uch b etter rate th a n can now be ob
tained on m arketable securities of
sh o rt te rm m aturities. W ith the abil
ity to borrow from F ederal R eserve
banks, using such serial notes as se
cu rity if the credits are sound, a bank
does not become unliquid by investing
a m oderate proportion of its total as
sets in them . R egard should n a tu rally
be tak en of a b a n k ’s capital funds, and
th e com position of its assets in d eter
m ining how far a b an k er should go
w ith this type of loan.”

Gross Volume
Com m ercial Credit Com pany a n 
nounced recently th a t its gross vol
um e of all receivables acquired d u r
ing th e six m onths of 1940 w as $416,712,085.69, com pared w ith $342,260,101.80 for the six m onths of 1939, and
w as $700,320,926.61 for the tw elve
m onths ended Ju n e 30, 1940.
N et incom e from operations avail
able for consolidated in terest and dis
count charges for the six m onths of
1940, a fter charging off losses and pro
viding am ple reserves for doubtful
item s, w as $8,025,341.09, com pared w ith
$5,803,696.37 for the six m onths of 1939,
and w as $11,808,147.78 for the tw elve
m onths ended Ju n e 30, 1940. Consoli
dated in terest and discount charges
w ere earned 6.54 tim es for the six
m onths of 1940, com pared w ith 4.11
tim es for the six m onths of 1939, and
6.57 tim es for the tw elve m onths end
ed Ju n e 30, 1940.

•
N et incom e from operations avail
able for dividends for th e six m onths
of 1940 w as $3,945,614.18, com pared
w ith $3,763,614.88 for the six m onths
of 1939, and w as $8,095,652.66 for the
tw elve m onths ended Ju n e 30, 1940.
This n et incom e is a fter providing for
all p resent federal and o ther taxes and
afte r deducting m in o rity in te re sts’
portion of $677.00 for the six m onths
of 1940, $2,619.22 for the six m onths of
1939, and $4,398.46 for th e tw elve
m onths ended Ju n e 30, 1940. The afore
said n et incom e for the tw elve m onths
ended Ju n e 30, 1940, includes a ta x 
able divident of 30 cents p er share, or
$53,306.70, received N ovem ber 15, 1939,
on 177,689 shares of com m on stock of
G leaner H arv ester C orporation held
by the com pany.
A fter paym ent of $259,118.26 divi
dends for th e six m onths of 1940 on
the 414 p er cent cum ulative converti
ble p referred stock outstanding, th ere
rem ained $3,686,495.92, or $2.00 per
share, applicable to 1,842,006 shares,
including scrip, of common stock of
th e com pany o u tstanding on Ju n e 30,
1940. T his com pares w ith $3,504,496.62
or $1.90 per share, for th e six m onths
of 1939, applicable to 1,842,008 shares
of com m on stock, including scrip, out
standing on Ju n e 30, 1939, and w as
$7,577,416.14, or $4.11 p er share, for
the tw elve m onths ended Ju n e 30,
1940, on 1,842,006 shares outstanding
on Ju n e 30, 1940.

105

EM PLO YE LO Y A LT Y
W ritin g in th e B an kers M agazine,
R ay A. Ilg, vice p resid en t of th e N a
tional S haw m ut B ank of Boston, gave
som e valuable p o in ters on how to de
velop in th e em ploye increased loyalty
to his in stitu tio n . He says:
“W hen we realize th a t th e em ployes
are th e ones w ho contact ap p ro x im ate
ly 901p er cent of th e b a n k ’s custom ers,
we can see how im p o rtan t it is th a t
em ployes reflect a sp irit of loyalty, a
sp irit of en th u siasm for th e w elfare of
th e ir in stitu tio n in all of th e ir daily
contacts.
“The m ost im p o rta n t th o u g h t th a t I
can b rin g to you is th e w ay in w hich
th is conception of loyalty can be
b ro u g h t about in our b an k in g in s titu 
tions th ro u g h o u t th e country, for w ith 
out th is loyalty no sincere and w o rth 
w hile effort to sell b an k services can
be accom plished.
“At th e tim e a person comes into th e
em ploy of a b an k it is only n a tu ra l th a t
he should w a n t to gain all th e in fo rm a
tion possible about th e in stitu tio n for
w hich he is to w ork. He comes to th e
b an k w ith an open m ind concerning
th e ciualities and operations of th e in 
stitu tio n , and it is th erefo re a t th is
tim e th a t th e m an agem ent should a t
te m p t to create a good and lasting im 
pressio n about th e bank. T his is the
logical tim e to give th e em ploye defi
n ite and com plete inform ation about
th e bank, and th e use of a descriptive
folder is, perhaps, th e best w ay to im 
p a rt such knowledge.
“A no th er point in th is pro g ram to
educate th e em ployes is to adopt a
policy aim ed at th e en couragem ent of
em ploye group m eetings. In sm all
b anks th is m ight w ell b rin g all of th e
em ployes to g eth er at one tim e, to dis
cuss th e w o rk of each d e p a rtm e n t in
th e bank. In larg er banks, it w ould
n ecessarily m ean b reak in g th is dow n
into sm aller groups, possibly by d e p a rt
m ents, w ith each group discussing not
only th e p a rtic u la r problem w hich ap 
plies to th e ir ow n w ork, b u t to listen to
th e officers or d e p a rtm e n t heads of
o th er sections of th e b ank in ord er th a t
th e y m ay becom e fam iliar w ith every
service w hich th e b an k is offering to
th e public.
“One of th e b est w ays to conduct
re g u la r m eetings for em ployes is the
so-called ‘ro u n d tab le’ m ethod w h e re 
by officers and em ployes alike sit dow n
togeth er to discuss th e ir m u tu al prob
lems. T his lends an air of in fo rm ality
to th e occasion and encourages each
em ploye to tak e an active p a rt in th e
proceedings.
“T h ere are m any plans w hich could
be p u t into effect to c a rry out a p ro 
gram of th is kind. T he size of th e b ank
itself is usu ally th e d eterm in in g factor
in choosing a p a rtic u la r m ethod. A

ra th e r unique plan for a round table
discussion is carried out by a midw estern ban k in this fashion. A ques
tio n n aire is prep ared covering every
phase of th e w ork of some one d ep art
m ent, and em ployes are th en asked to
w rite th e answ ers to th e questions be
fore th e m eeting is called. These ques
tions are th e n looked over by th e offi
cer in charge, and w herev er a differ
ence of opinion appears, those ques
tions are chosen as the ones to be dis
cussed in th e open m eeting. W hen an
em ploye is called upon to defend his
opinion on a certain subject he is
obliged to cite an actual experience
w hich he m ay have encountered.
“T here is an o th er benefit w hich ac

A nd ex

Ob

crues to a b an k from holding these
round table m eetings. Em ployes be
come im bued w ith th e feeling th a t
th ey are actually doing som ething con
stru ctiv e for th e ir own in stitu tio n by
giving th e ir suggestions and ideas. To
day, m ore th a n ever before, a bank
leans v ery heavily on its em ployes to
w in th e good w ill of the public, and if
the em ployes can be encouraged to do
some original thinking, in term s not
only of th e ir own jobs but of the w el
fare of th e ir bank, th ere is no estim at
ing th e am ount of good th a t w ill re 
sult. B anks are not ru n by m achinery
b ut by th e brains, enthusiasm , in itia
tive, and team w ork of all of th e ir
em ployes.”

¿ A d v e r tis e r s

A

A l l e n W a l e s A d d i n g - M a c h i n e C o r p ............. 107
A. C. A l l y n a n d C o m p a n y . .............................. 33
A m e r i c a n I n s t i t u t e o f B u s i n e s s .................... 84
A m e r i c a n L i t h o g r a p h i n g C o ............................ 101
A m e r i c a n M u t u a l L i f e I n s u r a n c e C o . . . . 27
A m e r i c a n N a t i o n a l B a n k a n d T r u s t C o . . 85
A n d r e w s H o t e l ....................................................... 54
It

B a l l a r d - H a s s e t t C o m p a n y .............................. 36
B a n k e r s T r u s t C o m p a n y ............................... 58-5 9
B r e w e r C o m p a n y , V. W ..................................... 32
B r o w n H o t e l ............................................................ 98
B u c k h a m a n d Co., I n c . , H . B ........................... 77
C

C a p i t a l C i t y S t a t e B a n k ..................................... 76
C e n t r a l L i f e A s s u r a n c e S o c i e t y .................. 78
C e n t r a l N a t i o n a l B a n k a n d T r u s t Co. . 2 2 - 2 3
C h a s e N a t i o n a l B a n k ...........................................
5
C i t y N a t i o n a l B a n k — C l i n t o n ......................... 76
C i t y N a t i o n a l B a n k a n d T r u s t C o .............. 84
C o m m e r c e T r u s t C o m p a n y .............................. 71
C o m m e r c i a l I n v e s t m e n t T r u s t , I n c ............ 36
C o n tin e n ta l Illin o is N a tio n a l B a n k a n d
T r u s t C o ..................................................................... 74
C o n t i n e n t a l N a t i o n a l B a n k .............................. 45
C r u m m e r a n d C o m p a n y , R . E ........................ 39

I)

D a v e n p o r t a n d C o m p a n y , F . E ..........4 3 - 7 3 - 8 2
D e s M o i n e s B a n k a n d T r u s t C o m p a n y . . 89
D e s M o i n e s B l d g . L o a n a n d S a v . A s s n . . .1 04
D i r e c t A d v e r t i s i n g , I n c ..................................... 97
D o u g l a s - G u a r d i a n W a r e h o u s e C o r p .......... 44
D r o v e r s N a t i o n a l B a n k ...................................... 68
E

E l m s H o t e l ................................................................. 44
E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 101
E q u i t a b l e L i f e o f I o w a ...................................... 98
E r i c k s o n C o m p a n y , C. E ................................... 96
F

H o n o r R o l l B a n k s ............................. . . . 67
I n v e s t m e n t B a n k e r s A s s ’n .......... . . . 28
L i t h o g r a p h i n g C o m p a n y ............. . . . 55
P a c k i n g C o m p a n y ............................ . . . 96
S ta te B a n k and T ru s t C o m pany
S t a t e T r a v e l i n g M e n ’s A s s ’n . . . ^! !100
J
J a m i e s o n a n d C o m p a n y ..................................... 38
J a c k l e y a n d C o m p a n y ........................................ 31

Iow a
Iow a
Iow a
Iow a
Iow a
Iow a

K
1,

K o c h B r o t h e r s ........................................................... 100
L a M o n t e a n d S o n , G e o r g e ..............................
L a m s o n B r o t h e r s a n d C o m p a n y ..................
L e s s i n g A d v e r t i s i n g C o m p a n y ....................I
L i v e S t o c k N a t i o n a l B a n k , C h i c a g o ..........
L i v e S t o c k N a t i o n a l B a n k , O m a h a .............
L iv e S to c k N a tio n a l B a n k , S io u x C ity . .

4
39
10
80
43
46

>1
M c G u i r e , W e l c h a n d C o m p a n y .................... 3i
M a n u f a c t u r e r s T r u s t C o m p a n y .................... 94
M e r c h a n t s N a t i o n a l B a n k .................................. 2-3
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . .1 00
M i n n e s o t a C o m m e r c i a l M e n ’s A s s ' n .......... 52
M u t u a l S u r e t y C o m p a n y ................................... 96

N

N a t i o n a l B a n k o f W a t e r l o o ...........................
N a t i o n a l C i t y B a n k o f N e w Y o r k .............
N e w U t i c a ....................................................................
N i e m a n n , W . K .........................................................
N o r t h e r n T r u s t C o m p a n y ......................
N o rth w e ste rn N a tio n al B a n k an d T ru st
C o m p a n y ...................................
N o rth w e s te r n N a tio n a l Life in s u ra n c e
C o m p a n y .................................................

62
7
97
82
79
51
53

O
O ffi ce E q u i p m e n t C o m p a n y ..............................
O m a h a N a t i o n a l B a n k ........................................

97
19

P

F a r m e r s N a t i o n a l C o m p a n y ............................ 79
F e d e r a l D i s c o u n t C o r p o r a t i o n . ..................... 32
F e d e r a l H o m e L o a n B k . o f D e s M o i n e s . .102
F e l t a n d T a r r a n t M f g . C o m p a n y ............... 97
F ir s t F e d e ra l S a v in g s a n d L o a n A ssn.
o f S t. P a u l ................................................................ 104
F i r s t N a t i o n a l B a n k , C h i c a g o ....................... 86
F i r s t N a t i o n a l B a n k , O m a h a ......................... 42
F i r s t N a t i o n a l B a n k , S i o u x C i t y .................. 69
F i r s t N a t i o n a l B a n k , St. L o u i s .................... 88
F i r s t N a t i o n a l B a n k a n d T r u s t Co.
M i n n e a p o l i s .......................................................... 50
F i r s t W i s c o n s i n N a t i o n a l B a n k .................. 91
F o r t D e s M o i n e s H o t e l ......................................... 100
F r a n k e l C l o t h i n g C o m p a n y ............................ 96

P h i l a d e l p h i a N a t i o n a l B a n k ......................... 48
P i o n e e r H i - B r e d C o r n C o m p a n y .................. 92
P o l i c y h o l d e r s M u t u a l C a s u a l t y C o ............ 98
P o lk C o u n ty F e d e ra l S av in g s an d Loan
A s s ’n .......................................................................... 102
P o l k P e t e r s o n C o r p o r a t i o n .............................. 30

Gr

U n i o n B a n k a n d T r u s t C o . ............................... 65
U n i t e d F e d e r a l S a v . & L o a n A s s n .............104
U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . . 41

G e n e r a l M o t o r s A c c e p t a n c e C o r p ............... 37
G o o d b o d y a n d C o m p a n y ................................... 38
G r a n t , V e r n o n .................................................. . . . 38
II

H a r r i s T r u s t a n d S a v i n g s B a n k .................. 89
H a w k e y e C a s u a l t y C o m p a n y ......................... 72
H a w k e y e M u t u a l H a i l I n s u r a n c e A s s o . . 98
H o l l e y a n d S o n , L. W .......................................... 96
H o m e B u i l d i n g a n d L o a n A s s n .................... 104
H o m e F e d e r a l S a v . a n d L o a n A s s ’n .......... 104
8
H o m e I n s u r a n c e C o m p a n y ..............................
H o n o r R o l l B a n k s .................................................. 67
45
H o t e l W e l l i n g t o n ..................................................

I

I n t e r - S t a t e F i n a n c e C o r p o r a t i o n ............... 34
l o w a - D e s M o i n e s N a t ’l B a n k a n d T r u s t
C o m p a n y ............................................. ...................

K

R o l l i n s a n d S o n s , E . H .......................................

35

S e c u r i t y N a t i o n a l B a n k .....................................
S h e l b y S a l e s B o o k C o m p a n y .........................
Stock Y a rd s N a tio n a l B an k , O m a h a. . . .

73
97
40

U

V

V alley S a v in g s B a n k

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

W
W a n t a d ............................................................
W a l l a c e - H o m e s t e a d C o m p a n y ..........
W a l t e r s C o m p a n y , C h a r l e s E ..............
W a t e r l o o B l d g , a n d L o a n A s s ’n . . . .
W a t e r l o o S a v i n g s B a n k .........................
W e s s l i n g S e r v i c e s .....................................
W e s t e r n M u t u a l F i r e I n s u r a n c e Co.
W h e e l o c k a n d C u m m i n s , I n c ...............
W i t m e r R u m s e y A g e n c y .........................
W i t m e r - K a u f f m a n a n d E v a n s ............
W o r k L e t t e r S e r v i c e ...................................

61

78
6

44
102
56
101

83
36
98
98
97

Northwestern Banker September 1940

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

106

In

the

Directors' Room

A Low Note

Finesse

“Is n ’t Y vonne’s new gow n a perfect
song?”
“Yes, sw eet an d low.”

Mrs. W.—“N orah, w as the b u tch er
im pudent again w hen you telephoned
y o u r order th is m o rning?”
N orah—“Sure, b u t I fixed him this
tim e. I says, “W ho th e hell do you
th in k y o u ’re talk in g to! This is Mrs.
W. talking!”

She Telis 'Em
“J u s t th in k , m y dear,” said th e ta lk a 
tive wife to h e r husband, “one h alf of
th e w orld doesn’t know how th e oth er
half lives.”
“N ever m ind, m y love,” w as th e re 
ply; “th a t is n ’t y o u r fault!”

R uth: “I w an t a lipstick, please.”
D rug Clerk: “W hat size?”
R uth: “Oh, tw o rides and a week-end
beach p a rty .”

It's Wonderful

Real Courtesy

F ath er: “H ow is it, young m an, th a t
I find you hugging and kissing m y
daughter? How is it, I ask you?”
Youth: “Oh, it’s great, it’s great!”

Tactics
“Com pany atten tio n !” baw led the
drill serg ean t to th e aw k w ard squad.
“Com pany, lift up y o u r left leg and
hold it s tra ig h t in fro n t of you.” By
m istak e one m em ber held up his rig h t
leg, w hich b ro u g h t it side by side w ith
his n eig h b o r’s left leg. “A nd w ho is
th e galoot over th e re holding up both
legs?” shou ted th e hardboiled sergeant.

Something Durable

Anna: “I ’m so glad you like it, dear.
M other says chicken salad and stra w 
b e rry ta rts are th e only th in g s I m ake
correctly.”
Alford: “W hich is this, d arling?”

Foresighted

Poor Dog!

“You say you w ere once cast aw ay
on a d esert island, en tirely w ith o u t
food. How did you live?”
“Oh, I happened to have an in 
su rance policy in m y pocket and I
found enough provisions in it to keep
m e alive till I w as rescued.”

Diner: “W hy does th a t dog sit th ere
and w atch me as I eat?”
W aiter: “You have th e plate he
usually eats from , sir.”

Correct

Critic, to artist: “Your p ictu re of th e
horse is good, b u t w h ere is th e
w agon?”
A rtist: “Oh, th e horse w ill d raw th e
w agon.”

L ittle Oswald: “Poppa, w h at be
comes of baseball players w ho lose
th e ir eyesight?”
Poppa: “T hey m ake um pires out of
th em .”

Poser

Viewpoint

H e—“If you keep looking a t me like
th a t I ’m going to kiss you.”
She—“W ell, I can ’t hold th is ex
pression m uch longer.”

F rie n d — (visiting hospital p atient)
“Do you know, old m an, th a t’s a sw ell
looking nu rse y o u ’ve got!”
P a tie n t—“I h a d n ’t noticed.”
F rie n d —“Good Lord! I had no idea
you w ere th a t sick!”

Judge: “R astus, do you realize th a t
by leaving y o u r w ife you are a de
se rte r? ”
R astus: “Jedge, ef y o ’ know ed dat
w om an like Ah does, y o ’ w ou ld n ’t call
m e no d eserter. A h ’s a refugee.”

Can't Use You
S ym pathetic M otorist: “Can I be of
any assistance, sir? ”
Second M otorist (fixing blow out):
“H ow is y o u r vocab u lary ?”
S ym pathetic M otorist: “I ’m a m in 
ister, sir.”
Second M otorist: “D rive on, R ev er
end!”
N o rth w estern B anker

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

S e p t e m b e r 1940

Boy: “Do you like m en w ho are al
w ays try in g to kiss you, or th e o th er
k ind?”
Girl: “W h at o th er kin d ?”

Conductor: “Did you get hom e all
rig h t last night, sir?”
W hifflebotham : “Of course — w hy
n o t?”
Conductor: “Well, w hen you got up
to give yo u r seat to th a t lady, you
w ere th e only tw o people on th e bus.”

Easy

Sho 'Nuf

No Other Kind

Sound
Jack h ad ju s t been inform ed by his
fa th e r th a t he w as spending tw ice as
m uch m oney at college as he should.
“Son,” rem ark ed fath er, “I know
y o u ’re spending it on w hiskey and
wom en. I don’t m ind y o u r fooling w ith
one of these, b u t you can ’t keep up th e
pace w ith both. You’ve got to cu t one
of th em out absolutely.” “All right,
Dad, I ’m willing. W hich one w ould
you advise me to cut out?” The old
m an th o u g h t in silence for a m om ent
and th e n said, “Son, you can d rin k all
th e w h iskey you w a n t w hen you get
old.”

Hard to Tell

And Care Less
“I alw ays enjoy strip p oker,” said
th e flapper. “I n ev er know ju st w hat
w e’re going to undo next!”

Clean
D um b—“W e’re going to give th e
bride a show er.”
D um ber—“Count me in. I ’ll b ring
th e soap.”

So What?
D orothy: “W h a t’s th e m a tte r w ith
you, E leanor—you look aw fully blue.”
Eleanor:
“I ’m te rrib ly w orried!
Jack seem s to have m isunderstood
m y last le tte r w hich told him to for
get th a t I h ad said I d idn’t m ean to
reconsider m y decision about not
changing m y m ind.”

Willing
She—“Say, it’s p ast m idnight. Do
you th in k you can stay here all n ig h t?”
He—“Gosh, I ’ll have to telephone
m o th er first.”

That's Different
“I don’t like y o u r in v itin g th a t chap
to dinner. H e used to kiss you before
we w ere m arried .”
“Well, so did you.”
“Yes, b u t I ’ve g o tten over it, and
m aybe he h a sn ’t!”

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^

rfaJerll Le IojoJzI kx^jpsi
YO U in DES MOINES
We look forward with pleasure to welcoming
customers and friends to Des Moines for the 1940
convention of the Iowa Bankers Association.
On your arrival we hope you will drop in to see us.
If there is anything we can do to make your con
vention visit more pleasant and profitable we shall be
happy to serve you.

1940 CONVENTION

Iowa Bankers Association
Des Moines, Iowa
Sept. 9th * 10th * 11th

IOW A-DES MOINES NATIONAL BANK
s- T r u s t C o m pa n y
M ember of The Federal Deposit Insurance Corporation


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Federal Reserve Bank of St. Louis
Full text of The Northwestern Banker : September 1940, Forty-Fifth Year, Number 638

FRASER
