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L A S A L L E S T R E E T , C H IC A G O
B . A . C o n v e n tio n in C h ica g o S ep tem b er 28 to O c to b e r 2
B. A . Convention
Iowa Bankers Convention
2 6 to 38
Pages 77 to 124
https://fraser.stlouisfed.org Pag es
Federal Reserve Bank of St. Louis
Greetings to the Iowa Association
The Merchants National Bank o f Cedar Rapids extends
sincere greetings to the Iowa Bankers Association. We also
offer hearty congratulations to our own Association Secretary,
Frank Warner, who has just com pleted 25 years o f friendly
service as Secretary o f the Iowa Association.
“ Friendly Service” plus com plete correspondent facilities
have likewise won thousands o f friends for the Merchants
National Bank over a sixty year period. We, too, are proud
o f this record “ down through the years.”
OFFICERS
J ames E. H amilton, Chairman
S. E. Coquillette, President
H. N. B oyson, Vice President
Roy C. F olsom, Vice President
Mark J. Myers, Vice Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, Vice President
F red W. S mith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt , A ssistant Cashier
L. W. B roulik, A ssistant Cashier
P eter B ailey, A ssistant Cashier
R. D. B rown, A ssistant Cashier
0 . A. Kearney, Assistant Cashier
S tanley J. Mohrbacher, A sst. Cashier
E. B. Zbanek , Building Manager
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 r th w e ste r n B an k er, p u b lis h e d m o n th ly b y th e 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 y ea r . E n tere d as s e c o n d -c la s s m a tter a t th e D e s M o in e s p o st office. C o p y r ig h t, 1941.
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Federal Reserve Bank of St. Louis
NATIONAL BANK
Cedar
Rapids,
Iowa
Northwestern Banker Septem ber 19^1
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Federal Reserve Bank of St. Louis
i
*
PARA AYUDARLE
El SUS I
I f A K IN G these five words m ean som ething helpful to
American business is a job this hank has been doing
for 27 years.
In Spanish th ey say, "T o help you transact business" —
and th a t’s the object o f N ational C ity’s widespread LatinAmerican organization.
N ational C ity was the first American national hank to
enter this field. Since 1914 w e’ve built up a know ledge of
Latin-Am erican relationships th at is proving to be of in
creasing value to business here.
Differences in custom s, in banking and exchange regu
lations are only a few of the problems business faces. To
help you, we put at your disposal the experience of more
than a quarter of a century, and an organization com
prising 41 branches throughout South and Central America
and the Caribbean.
This knowledge and experience is at the disposal of
American banks through our H ead Office in N ew A ork,
or through Correspondent Banks from coast to coast. In
addition, a group of officials at our H ead Office is ex
clusively engaged in Latin-Am erican relationships and is
in daily contact w ith our branches there.
Through these m en, these branches and this accum u
lated experience, we try to put extra m eaning into those
five words that say:
The first overseas u n it o f a n y A m erican
national bank— N ation al C ity's Buenos
A ires branch (fou nded 1914)
* "TO HELP YOU TRANSACT BUSINESS”
THE
umiiui. city bank of newhick
HE A R
OF F I CE :
55
WALL
B7 BRANCHES
STREET
LATIN
A r g e n t in a
B u e n o s A ires
( S u b-bra neh es)
F lo re s
P la z a O n c e
R o s a rio
B
C
anal
Zone
B a lb o a
C r is to b a l
C
h il e
S a n tia g o
V a lp a ra is o
razil
R io d e J a n e ir o
F ern am b u c o
S a n to s (A g y .)
Sao P au l o
C
olom bia
B o g o ta
M e d e llin
B a r r a n q u i ll a
C
AMERICAN
IN C H E A T E R N E W YORK
BRANCHES
D
R
uba
H avana
(S u b -b ranches)
C u a tro
C a m in o s
G a lia n o
L a L o n ja
C a ib a r ie n
C á rd e n as
M a n z a n illo
M a ta n z a s
S a n tia g o
M
o m inica n
C iu d a d T r u jillo
B a ra h o n a
L a V ega
P u e r to P l a ta
S an P e d ro de
M a c o r is
S a n tia g o d e los
C a b a lle r o s
E S T A B L I S H E D
e x ic o
M e x ic o C ity
epu blic
P
eru
P
uerto
R epublic
P anama
of
Panam a
L im a
R
ico
San Ju an
A re c ib o
B ayam on
C aguas
M ayaguez
Ponce
U
ruguay
M o n te v id e o
V enezuela
C a ra ca s
1 8 1 2
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
BRANCHES,
AFFILIATES
AND
CORRESPONDENT
IMPORTANT
Northwestern Banker September 1941
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Federal Reserve Bank of St. Louis
CITY
OF
BANKS
THE
IN
WORLD
EVERY
COMMERCIALLY
... , .
P h o to g ra p h e d a t N aval Air S ta tio n , N ew York C ity, b y C o u rte sy oi th e U. S. N avy.
Experience has made it imperative
Every man who flies for Uncle Sam wears a
parachute as required equipment.The gov
ernment insists that this sensible depend
able safety device be taken on every flight.
Similarly, far-sighted business executives
insist on La Monte Safety Papers for effec
tive protection of their checks against the
ever-present hazard of alteration and
counterfeiting. Leading banks everywhere,
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Federal Reserve Bank of St. Louis
and the nation's great corporations, use
these protective papers. The sense of se
curity a g a in st check fraud afforded b y
La Monte Safety Papers is beyond evalua
tion. » » Your Lithographer or Printer will
gladly submit samples of La Monte Safety
Papers and explain how you can have your
own Trade Mark or individual design in
corporated in the check-paper itself.
6
The
W allace - Hom estead
Com pany
Printing
Plant, 19th & G rand
Ave., w here visitors
a re a lw a y s welcome
c
ongratuiations
and B est W ishes to th e...
¡KIRS
m
Ifl
55Mmm emulili
SE PT E M B E R 8, 9 and 10
D e s M oines
•
tow aBankers Association Standard form s
For the convenience of Iowa Bankers, w e carry in stock
for immediate delivery Iowa Bankers Association Stand
ard Forms—Real Estate Mortgages Nos. 6 and 28; Chattel
Mortgage No. 29; Conditional Sales Contract No. 26; Con
ditional Sales Contract Note only No. 26A; Extension of
Time for Payment Agreement No. 41 (Supplemental to Form
No. 26); Personal Loan Notes Nos. 42,43 and 44 and Chattel
Mortgage No. 45 (for use with Personal Loan Note No. 44).
LJj
1
liliF
L
Printing
of
the
FACES
Northwestern Banker Septem ber 19kl
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Federal Reserve Bank of St. Louis
USED
FOR
T H IS
ï
Engraving
DES MOINES, IOWA
Northwestern
TYPE
0
J
•
Binding
•
1912 GRAND AVENUE
Printers
1
Banker
A D VER TISEM EN T
ARE
for
FLASH,
SPIRE
More
AND
STY M IE
Than
25
Years
7
D o n ’t SAY "UNPREPARED"! For there
is no hazard so great to the American
people as the specter of being unprepared
to meet any threat to its freedom. The
government's swift swing into action to
unify our defense energies is a form of in
surance for 130 million individuals, guaran
teeing their will to live by choice.
W hen you buy a U. S. Defense Bond,
you volunteer a premium for the most
urgent insurance policy in America. As an
insured you are also an investor, and as an
investor you are also insured.
For nearly ninety years, The Home
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Federal Reserve Bank of St. Louis
has kept a trained eye on hazard, because
it has had to assume risks and pay losses.
It is therefore in a position to recommend
U. S. DEFENSE BONDS as the best insur
ance to dispel an ominous national hazard
. . . the cloud of unpreparedness.
a
THE H O M E *
NEW
YORK
Q[ T h e Jdom e, through its agents and brokers, is A m erica’s
leading insurance protector o f Am erican H om es and the
H om es o f Am erican In d u str y .
FIRE
•
AU TO MO BIL E
*
MARINE
I NSURANC E
“Always Ready”
“ ...The Navy is always ready”
Secretary of the Navy F rank K nox
May 7, 1941
w u r First Line of D efen se— T he N avy— in
heralds the growth of an invincible two-
ever increasing strength stands watch over
ocean navy, as destroyers and other ships
the A m erican nation. And each day the
of war glide dow n the w ays m onths ahead
tem po of our shipyards, the basic factor in
of schedule.
our cou n try’s naval pow er, is accelerated.
In financing the building of shipyards, as
Bank cred it— like the U. S. N avy— also is
in other rearm am ent activities, the Chase is
always ready. C om m ercial banks are actively
cooperating in vigorou s m easure with cor
participating in financing the construction
respondent banks throughout the country,
of the new shipyards which are beginning
thus helping to place in the hands of our
to dot the nation’s coastline. T he staccato
arm ed fo r c e s th e m ean s o f
tattoo of thousands of riveting m achines
A m erica’s safety and integrity.
d e fe n d in g
THE CHASE NATIONAL BANK
O F T HE C I T Y O F N E W Y O R K
Member Federal Deposit Insurance Corporation
Northwestern Banker Septem ber 19M
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Federal Reserve Bank of St. Louis
NO RD W ESTERN
SEPTEMBER
19 4 1
DES
M O IN ES
NUMBER 650
FO RTY-SIXTH Y E A R
Oldest Financial Journal West of the Mississippi River
CLIFFO RD DE PUY
IN THIS ISSUE
Publisher
Editorials
R A L P H W. M O O R H E A D
A cross th e D esk fro m th e P u b lis h e r.............................. ......................................................
Associate Publisher
Feature Articles
H EN R Y H . H A Y N E S
F ro n tisp ie c e .............................. ................................................... .....................................-.........
A B an k D ire c to r T a lk s A b o u t H is Jo b ..................................... John H. Goeppinger
L eg al D e p a rtm e n t— A N ote an d M o rtg a g e D e fa u lts — .............................................
N e v e r S ay “ N o” to a P ro sp e c tiv e B o rro w e r................................. C. F. Dabelstein
N ew s an d V iew s of th e B a n k in g W o rld ..........................................Clifford De P uy
P ro s p e rity “ R a in s” in th e D a k o ta s......................................................................................
H ow th e A rm y P a y s Its B ills.............................. .................................................................
S tre a m lin in g th e B a n k ................................... .............. ...... ................ Laurence A rm o u r
Editor
J. STUART D A V IS
Associate Editor
527 Seventh Street,
Des Moines, Iowa
12
13
14
15
16
17
18
20
The A . B. A . Convention
Telephone 4-8163
T he P ro g ra m in C h icag o ................................................................ ........................................ 26
C hicago C om m ittee C h airm en — P ic tu re s ...................... ....... ........ -...........------- -------- 29
F o r Y o u r E n te rta in m e n t in C hicago............. ............. ....... .................... ...... ............. ..... 31
C hicago C om m ittee C h airm e n — P i c t u r e s
--------------------------------- ------ ------- — 34
NEW Y O R K O FFICE
Insurance
Frank P. Syms
H o w to F in d a n d Sell N ew B u sin e ss............ ........ ................................... H. O. A r th u r
F iv e C a rd in a l R ules of S e llin g ........................................................ ....... Carroll C. D ay
Vice President
505 Fifth A ve.
10
39
43
Suite 1 202
Telephone MUrray Hill 2-0326
Bonds and Investments
T he M o n th ’s M a rk e t M a n e u v e rs......... ...... ...................................... Jam es H. Clarke
B a n k in g a n d C low ning ----- ----------- ------------------ -------------- ----------- -------- --------
M IN N E A P O L IS O FFICE
Jos. A . Sarazen
53
57
State Banking News
Associate Editor
N e b ra sk a N ew s .............. ........................... ......................................... .....................-....... ........
O m aha C le a rin g s ........................................ ................................. ...... ...................-.......
L incoln L ocals ........................... .................................... -.............................-............. -.....
S o u th D a k o ta N ew s......................................... ...... .............— ................ —........ ...................
M in n eso ta N ew s ----- ------------ ----------------------------------------------------- ---------- -------T w in C ity N ew s............................................... ......................................................-..........
N o rth D a k o ta N ew s............... ..... .............. ................. ................ ............. ............... .............
Telephone Hyland 0575
63
65
67
69
71
73
75
CONVENTION CALENDAR
A m eric a n B a n k ers A s s o c ia tio n — H o te l
S te v e n s , C h ica g o , S ep tem b er 28-O cto b er 2.
F in a n c ia l A d v e r tis e r s A s s o c ia tio n —
H o te l S ta tle r , C lev e la n d , S ep tem b er
8 - 11 .
N a tio n a l A s s o c ia tio n o f B an k A u d i
to r s and C o m p tr o lle rs 17th A n n u al
N a tio n a l M e e t — C h ica g o , I llin o is ,
O c to b e r 8-11.
STATE CONVENTIONS
I o w a — H o te l F o r t
tem b er 8-9-10.
D es
M o in e s,
S ep
N eb ra sk a — P a x to n H o te l, O m ah a, O c
to b er 9-10.
Iowa Bankers Convention
T he C onvention P ro g r a m ....................... .............— ............................................................. 77
C onvention E x ecu tiv e C om m ittee— P ic tu re s ................................................ ................. 81
F u n an d F ro lic a t th e C o n v en tio n................................... ...... ........................................... .
83
C onvention C om m ittee C h a irm e n — P i c t u r e s ................................................................- 85
A n n u a l M eetin g of Iow a A u d ito rs a n d C o m p tro lle rs---------------------------------- —
87
On th e Jo b fo r T w enty-five Y e a rs— F ra n k W a rn e r P ic tu re ......... ......................... 89
See T hem a t th e Iow a C o n v e n tio n P ic tu re s ......... .................................................93, 95, 98, 103, 106, 113, 117, 120, 121
Iow a P re s id e n tia l C andidates---.--- -------------- -------------- ------ ----------------.................. H I
The Directors’ Room
A F ew S h o rt S to rie s to M ake Y ou L a u g h ............. ................. ........ ........ .................... 126
MEMBER
Audit Bureau of Circulations
Financial Advertisers Association
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Federal Reserve Bank of St. Louis
Across the Desk
From the Publisher
Banks Earn 64 Cents
F igures which have
Per $100 of Deposits recently been filed by
r
the B ank M anage
m ent Commission, show th a t profits before divi
dends of all insured com m ercial banks th ro u g h
out the nation averaged 64 cents per $100 of de
posits d u ring 1940.
It also shows th a t profits by states indicate
th a t Oklahom a was high w ith $1.34 per $100 of
deposits and th a t Maine was a t the bottom of the
list w ith 31 cents per $100 of deposits.
The figures are as follow s:
PROFITS BEFORE DIVIDENDS
64 cents per$100 of deposits............. .1940
72 cents per $100 of deposits............... .1939
60 cents per$100 of deposits................1938
PROFITS BY STATES 1940
$1.34 per $100 of deposits for Oklahoma
.31 per $100 of deposits for Maine
AVliile earnings per $100 of deposits w ent down
a little in 1940 com pared w ith 1939, they are up
4 cents per $100 in com parison w ith 1938.
As fa r as 1941 is concerned, it is quite likely
th a t the earnings will increase because of the tre
m endous am ount of defense financing.
Closes Bank During
P robably one of
"Roosevelt Concocted the most coloriulr
ii
as well as one of
Emergency
the most successful
bankers, th roughout the country has been J. M.
Nichols, president of the F irst N ational B ank of
Englew ood in Chicago.
Now, a fte r 52 years of successful banking, he
has closed his bank, paid off his depositors, and
may, in the n ear fu tu re, pay his stockholders $500
a share and be out of the banking business d u r
Northwestern Banker Septem ber 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ing w hat he calls the “ Roosevelt Concocted E m er
gency. ’ ’
In a statem ent to his depositors, Mr. Nichols
said, “ C onfronted, as we are today, w ith the
spectacle of a nation b etrayed by its own public
officials, a people divided as never before, not
even in Civil W ar days, and on all sides a re so rt
ing to N a tu re ’s first law of self-preservation, I do
not care to continue as the custodian of other
people’s money. U nder these conditions, this
country could be split wide open. It aw aits only
a face-saving ‘in cid en t.’
“ W e have, therefore, re tu rn ed all but $39,000
of a one-time-high deposit of over 7 million, and
we urge the im m ediate w ith d raw al of this small
balance to enable us to close our books on 52
years of successful banking, a t least for the d u ra
tion of the Roosevelt concocted emergency.
“ W hether or not we step out of the picture
com pletely, w reck the building, and m ake a cash
distribution to our stockholders of b e tte r th an
$500 a share, will, of course, depend on coming
events. C ertainly, w ith a capital stru ctu re of
over a m illion dollars and a building entirely w rit
ten off, we sit in an enviable position to re-enter
the banking business when, as, and if financial
and political conditions w a rra n t i t . ”
W hile we have agreed w ith Mr. Nichols on
m any occasions, we do not feel th a t the w orld is
coming to an end, even as black as things may
appear a t times, but we do believe th a t the b an k
ing institutions of the country today are on a
sounder basis th an they have been for m any years.
We are quite sure th a t Mr. Nichols eventually
will have the “ u rg e ” to get back in the banking
business and I know he will probably do so unless
F ran k lin “ D eficit” Roosevelt accepts a fo u rth
term .
11
Lessons From
The continued expansion
Munition Making of our defense program and
the changing over of peace
tim e m an u factu rin g organizations into the p ro
duction of w ar m aterials has caused m any and
vexatious problems.
However, it is the belief of m any in d u strial
experts th a t we will learn valuable lessons from
our m unition m an u factu rin g and th a t when the
em ergency is over we will be in a b e tte r position
th an m any m ight have believed.
The reason for this is th a t we will have devel
oped new m aterials to tak e the place of those
w hich we could not im port and other practical
m an u factu rin g benefits will have resulted.
As one economist puts it, “ In the long ru n these
forced changes in our industries will probably
prove to be helpful ra th e r th a n harm ful. They
will impel us to develop new m aterials, m ake us
im prove our productive m ethods, force us to de
velop new kinds of mass production procedures,
and increase our fa ith in our national capacities
to cope w ith difficult in d u strial problems. W e
profited in those ways as a re su lt of our W orld
W ar experiences, and it seems reasonable to ex
pect th a t outcomes of sim ilar sorts will be expe
rienced this tim e .”
W e gained valuable experience from W orld
W ar N um ber 1, and th ere is no reason w hy we
sh o u ld n ’t from W orld W ar N um ber 2.
Installment Selling
W e believe th a t time
Is Sound
paym ents and installm ent
selling is sound if the
period of tim e allowed for the purchase of the
m erchandise is not too long and if the down
paym ent is of a sufficient am ount to m ake the
purch aser have a real desire to complete the
paym ents.
W hile the G overnm ent has now issued an order
to reduce installm ent selling, it has not been
elim inated entirely and when this em ergency is
over the plan will be continued by banks and
financial institutions because there is a need for
such financing on the p a rt of the public.
The figures on installm ent selling, as given by
one author, are th e s e : “ In 1929 the volume of all
in stallm ent sales in the U nited States totaled 6^/2
billion dollars. Like other businesses, this one
suffered from the depression, dropping to 4 bil
lion dollars in 1936. I t had grow n to 5 billion
the nex t y ear— 12.2 per cent of the to tal re ta il
sales. Today it is ru n n in g well over 5 billion.
Such a volume would have been inconceivable
had not time sales m et a basic hum an need and
established itself as a legitim ate w ay of doing
business. ’ ’
If, as this w riter points out, tim e paym ents do
m eet a definite hum an need, then they will be
continued a fte r the em ergency is over un d er
proper safeguards and restrictions.
Americans Still
with o u r in creased miliHave Fun
ta r y activ ities, p e rh a p s it is
sacrileg io u s to sp eak of fu n ,
b u t, a f te r all, A m ericans m u st have some let-up
fro m th e trem en d o u s pace an d speed a t w hich th ey
are now going.
As a m atter of fact, A m ericans rig h t now are
spending over 4 billion dollars annually in p u r
suit of th eir favorite sports because the figures
show th a t 12,000,000 men and women go fishing
and over 3,000,000 hunt, while another 3,500,000
sw ing a t the golf balls and 5,000,000 like to bowl
and 750,000 go boating.
C ertainly this is one of the by-products of de
m ocracy w hich we have know n up to now and it is
one of the reasons why A m ericans have been the
happiest people in the world.
Are W e to
L e t’s not H itlerize Amer-
Defeat Hitler by ica in order t0 defeat Hit'
imitating Him?
Capitalism by giving it up.
Also, w hatever powers we m ay now su rren d er
to the G overnm ent during the national em ergency
should be reclaim ed by business when the em er
gency is ended.
This is expressed very well by E m m ett F. Connely, president of the Investm ent B ankers Asso
ciation of Am erica, who says, “ There are those
in this country who insist th a t if the w ar against
to talitarian ism is to be won, we m ust become to
talita rian . They seem to feel th a t the best w ay
to preserve C apitalism is to give it up. They
would wage a w ar against Llitler by adopting
ideas and m ethods sim ilar to those which H itler
has imposed upon an enslaved people. A national
em ergency dem ands th a t we su rren d er the nec
essary powers for the defense of our nation, but
these should be su rrendered jealously and they
should be su rrendered in such a w ay th a t they
can be reclaim ed from the central governm ent
when the em ergency is en ded.”
If C apitalism does not survive this w ar, we
m ust re tu rn to a feudal economy.
Northwestern Banker Septem ber 1941
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Federal Reserve Bank of St. Louis
Northwestern Banker Septem ber 19hl
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Federal Reserve Bank of St. Louis
13
¿1
When The
Board M e e ts
A Bank Director Talks About His Job
R O PER consideration of th e duties
of p re se n t day b an k d irecto rs m ay
m ake it necessary to re fe r to th e
h isto ry of m ethods of local banks.
To begin w ith, we m u st adm it th a t
we are living in a changing w orld and
m u st th erefo re a d ju st b an k activities
to conform to new conditions, except
ing th a t th e re should be no com prom
ise in m a tte rs relativ e to principles
w hich p a st experiences have proven
safe, sound and profitable. Tw entyfive y ears ago, and even m ore recen tly
in some cases, th e office of b an k d irec
to rs w as largely an h o n o rary one; th e
boards q uite often h ad am ong th e ir
m em bers several successful m erch an ts
or professional m en w hose rep u tatio n ,
th e active officers th o u g h t, w ould add
prestige to th e ir in stitu tio n . D iscount
com m ittees w ere appointed b u t sel
dom w ere th e y called for d u ty unless
certain lines of cred it becam e too large
or w ere n earin g a d anger point. The
board w ould m eet reg u larly , h eard the
loans read, usu ally approving them
and quite often w ith o u t th e d irecto rs’
definite know ledge of th e b o rro w e r’s
financial position, depending largely
upon p ast paying records; revised fi
nancial statem en ts w ere a ra rity in
those days. T he active officers w ere
usually progressive, fairly co nserva
tive and a tte n tiv e to th e ir duties. The
com m unity w as in stage of h ealth y
developm ent, good bo rro w ers w ere
p len tifu l and ban k in g profits w ere
good. The directo rs w ere th erefo re
com pletely satisfied to e a rn for th e ir
stockholders tw o dividends p er y ear
at 6 to 10 p er cent each and in ad d i
tion p u ttin g aside su b stan tial reserve
funds. W ith such accom plishm ents,
the directo rs a p p a re n tly th o u g h t it u n
necessary to devote m uch active super-
P
By John H . G o epp ing er
Chairman of the Board
Citizens National Bank
Boone, Iowa
vision to th e b a n k ’s affairs and sat
back com placently expecting th a t busi
ness profits w ould continue good for
all tim e to come.
T hen cam e th e depression of 1932-33
w ith its problem s, w orries and disap
pointm ents; large reserve funds w ent
dow n th e river, good assets w ere sac
rificed in order to m ake a quick pay
out to depositors, stock assessm ents
w ere paid and finally liquidation was
com pleted. D epositors, in m any cases,
w ere reim bursed in full, or nearly so,
b u t th e stockholders cam e out looking
m uch like Jo b ’s tu rkey. It can be
safely said th a t if all of Iow a bank
depositors had placed th e ir funds in
an y o th er investm ents, o th er th a n
U nited States g o vernm ent or Iowa
m unicipal bonds, th e y w ould have suf
fered m uch g re a te r losses th a n th a t
su stained th ro u g h deposits in m ost of
th e Iow a banks w hich w ere liquidated.
N ext came th e so-called “b ank holi
d ay ” and in au g u ratio n of a new era
w ith its “flock” of new practices and
restrictio n s, all no doubt intended for
th e im provem ent of b an king m ethods
and m ore protection of th e depositors.
M any of these innovations, if th ey m ay
be so called, w ere not conducive to
b an k profits and, to m ake the b a n k e r’s
problem s m ore difficult, th e govern
m en t and its affiliated agencies came
to th e rescue of the debtor class by
m aking m illions of dollars available at
g reatly reduced rates and m ore lib
eral term s and m argins of security
th an th e banks w ere perm itted to
grant. These liberal term s and low
rates w ere certain ly necessary at the
tim e in order to resto re confidence and
to give th e debtor o p p o rtu n ity to re
cover. Now th a t such aim s have been
accom plished, it is high tim e th a t
m oney lending should be tu rn e d back
to th e banks and o th er well supervised
lending agencies.
As though low rates and extrem ely
liberal term s by governm ent agencies
w ere not enough to harass th e banker,
alm ost countless burdens w ere added,
such as deposit insurance, social se
cu rity tax, unem ploym ent tax, su r
charges on postal rates and th en th e
im position of the W ages and H our Act.
The latter, w hen applied to banking,
is in effect a prem ium to the employe
w ho has th e m isfortune to be off in
balancing his w ork or w ho m ay have
been careless in his duties.
A fter having considered th e condi
tions u n d er w hich b ank directors
served in recent years, coupled w ith
regulations and restrictio n s now in
force, we w ill consider w h at qualifica
tions should be looked for in presen t
day bank directors.
F irs t of all, he should be successful
in his own business or profession; he
should know his com m unity and its
problem s; he should be able to select
capable and tru stw o rth y executive
officers; he should give aid to th e ac
tive officers in the selection of capable
and courteous personnel, chosen from
fam ilies of influence and in teg rity and
p articu larly such as give prom ise of
talen t w hich w ould m ake them desir
able and capable of filling resonsible
positions w hen op p o rtu n ity arises.
(T u rn to page 38, please)
Northwestern Banker Septem ber 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Does a Note Become
W h e n a Mortgage Defaults?
Jo rd an executed in fav o r of a b ank
in N ebraska a $5,000 prom issory note
and a m ortgage on certain real estate
to secure it. The tw o in stru m e n ts
w ere executed at th e sam e tim e. The
m ortgage contained a provision th a t
the en tire am o u n t of th e note m ig h t
be declared due on defau lt of any in
te re st paym ent b u t th e note contained
no such acceleration provision. A
default occurred and th e b an k sought
to declare th e en tire am o u n t of th e
note due. Could it do this?
Yes. A note, and a m ortgage se
cu ring it, m ade contem poraneously,
are to be con stru ed together. A n ac
celeration provision in a m ortgage se
curing a note en ters into and becom es
a part of the note so that the m aturity
of the note is advanced in lik e m anner
w ith the m aturity of the m ortgage for
all p urposes in cid en t thereto.
A M innesota b an k sued th e county
au d ito r of th e county in w hich it w as
located and th e su re ty on h is bond
for a loss su stain ed from th e p u rchase
of tw o county w a rra n ts w rongfully
issued and negotiated by th e auditor.
The b an k did not p articip ate in th e
a u d ito r’s w rongful act and w as not
negligent in accepting th e w a rra n ts.
Could it recover from th e surety?
Yes. W here a bank is en titled to
recover again st a cou n ty auditor for
a loss resu ltin g from a purchase by
the bank of cou n ty w arrants w ron g
fu lly issued and n egotiated by th e au
ditor, the su rety on the cou n ty audi
tor’s official bond is also liable to the
bank for such loss, u n less the su rety
estab lish es that it has been released
from its obligation by the bank’s par
ticipation in the auditor’s w ron gfu l
act, or that the bank’s n egligen ce in
accep ting the w arrants w as the proxi
m ate cause of its loss.
Schenley w as appointed tru ste e of
an estate in Iow a u n d e r a w ill w hich
directed him to consult w ith h is sis
ters reg ard in g th e sale of certain p ro p
erty. He refu sed to com ply w ith th e
direction and h ired a real estate agent
to sell th e p ro p e rty to w hom he w as
req u ired to pay a fee. H is sisters
ultim ately bought th e p ro p e rty and,
had he consulted w ith them , th e emNorthwestern Banker Septem ber 19ht
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
These and Other Timely Legal
Questions A re Answered
By the
LEGAL DEPARTMENT
ploym ent of th e agent w ould not have
been necessary. In settling his ac
counts, th e court refused to m ake an
allow ance to him for his expenditure
to th e real estate agent. W as th is
correct?
Yes. Ordinarily a tru stee m ay em
ploy real estate brokers if it is n ec
essary and proper for him to do so in
the m anagem ent of a tru st. H ow ever,
w here a tru stee ign ores a direction in
the trust agreem en t to con su lt w ith
others before sellin g property and
em p olys such brokers in circum
stances w here th eir em p loym ent is
not n ecessary, no reim bu rsem en t to
him for h is exp en d itu res to them w ill
be allow ed.
The tre a su re r of an Iow a school
d istrict w rongfully w ith d rew from its
account w ith a b ank certain funds by
th e issuance of checks th a t w ere ap
p a re n tly valid. T he b an k did not
p articip ate in th e w rongful acts and
h ad no know ledge or notice of them .
W as it liable to th e school d istrict
for th e funds so w ithdraw n?
No. A depository bank is n ot liable
to a school d istrict for funds w hich
its treasurer w ro n g fu lly w ithd raw s
from the bank and m isappropriates
in the absence of any participation
by the bank in the w ron gfu l acts or
any k now ledge or notice on the part of
the bank of th eir occurrence.
The office m anager of a com pany op
e ratin g in South Dakota, p u rsu a n t to
custom , signed a block of checks to
be used for th e day’s business, leaving
th e am ount, date and payee b lank to
be filled in by th e bookkeepers. A fter
th e office closed, an em ployee stole one
of th e checks, in serted th e date, an
am ount, and a payee and negotiated it
to an innocent p u rch aser for value.
In such circum stances, w as th e com
p an y so negligent as to be estopped
from denying liability to th e holder for
th e am ount of th e check?
No. A ccording to a recent South
Dakota Suprem e Court decision. In
that d ecision it w as held that, in a s
m uch as the check had not been com
pleted in a valid fashion and duly de
livered, the com pany nam ed as m aker
of the check w as not liable to the
holder for the am ount sh ow n on its
face.
D uncan p u rchased ce rtain cattle in
Iow a from a b ank th ere and agreed
to pay for th em in installm ents.
Schwall, a t th e sam e tim e, en tered
into an agreem ent w ith th e b ank th at,
if D uncan did not pay as agreed, he,
Schw ab, w ould com plete th e pay
m ents.
C ertain disputes arose be
tw een D uncan and th e ban k and a
com prom ise ag reem ent w as entered
into and consum m ated by them . Did
such action release Schwab?
Yes. A creditor, com prom ising or
settlin g h is claim again st a debtor, re
lea ses the debtor’s su rety from lia
b ility on h is agreem en t of su retysh ip .
A South D akota b an k er ow ned a
p o u ltry farm in th a t state. He bought
from P ollard one dozen roosters. The
sale w as negotiated by Hodges as
agent for Pollard, and as such agent
he h ad been duly em pow ered to m ake
th e sale. As one of th e incidents of
th e sale, H odges w a rra n te d to th e
b an k er th a t th e roosters w ere h ealth y
and free from disease. I t developed
afte r th e ro o sters w ere delivered,
how ever, th a t th ey w ere not h ealth y
and th a t th ey had d ip h th eritic roop.
T he b ank sought to recover un d er the
w a rran ty .
P ollard contended th a t
H odges had no a u th o rity to m ake such
w a rra n ty and th a t he, Pollard, should
n ot be bound thereby. Should such
contention be sustained?
No. W here an agen t is em ployed
to sell roosters b elon gin g to the prin
cipal, the a g en t’s au th ority to sell in
cludes the au th ority to w arrant the
roosters as b ein g h ea lth y and free
from disease.
K ing w as em ployed by a South Da
kota b an k to find a p u rch aser for cer(T u rn to page 99, please)
15
C. F. D abelstein a t his desk in The O lm stead County
B ank & T ru st Company
Never Say "N o* to a Prospective Borrower
W
E N E V E R say ‘N o’ to a p ro s
pective b o rro w e r” m ig h t w ell
be th e m otto of th e O lm stead
C ounty B ank & T ru s t Com pany, R och
ester, M innesota, of w hich C. F. D abel
stein is president. A sh o rt tim e ago
we visited w ith Mr. D abelstein in his
office in th e bank, and he told us m any
thing s about th e o peration and m an
agem ent of his in stitu tio n . R ochester,
you know , is th e hom e of th e Mayo
Clinic, and th e Clinic Building, re
sem bling an office stru c tu re so fa r as
general ap p earance is concerned, b u t
one of th e m ost b eau tifu l buildings we
have ever seen, tow ers above all o th
ers, su rro u n d ed as it is by large hotels.
W ith an in stitu tio n as large as th e
Mayo Clinic, it is n a tu ra l th a t th e b u si
ness activities of R ochester resolve
m ore or less aro u n d th is m edical cen
ter, and, of course, The Clinic, as it is
called there, has its econom ic influence
on th e citizens of th e tow n.
“W hen people come in to inquire
about a loan,” said Mr. D abelstein,
“too m an y b a n k ers ju s t say ‘no’ and
m ake no investig atio n of an y k in d to
determ in e w h e th e r th e prospect is en
titled to consideration. T h a t is not
th e w ay we o perate in th is bank. W e
accept all applications for loans th a t
are m ade to us, because a fte r in v esti
gatin g and doing a little research
m any tim es we find th e prospective
b o rro w er h as collateral of th e type
th a t w ill p erm it th e loan. E v en on
farm applications, w h ere we are sure
A n I n te r v ie w w i th
C . F. Dabelstein
President
Olmstead County Bank & Trust Co.
Rochester, Minn.
we know all about th e individual and
his financial picture, we alw ays look
into th e m a tte r again, and quite often
find security w here we th o u g h t th ere
w as none.”
The O lm stead County B ank & T ru st
Com pany does n o t have a separate de
p a rtm e n t for sm all loans as m any
b anks do, b u t it still m akes h u n dreds
of loans of th is n atu re. L ast year,
Mr. D abelstein said his b ank averaged
nealy 400 new loans per m onth, for a
to tal of $1,600,000, and du rin g th e y ear
had $1,400,000 in loans paid up. All
c h aracter or salary loans, and city
real estate loans, are on a m onthly
p ay m ent plan. Loans of th is k ind are
k ep t separate from o th er types of
loans th e b an k is m aking, and w hile
th e b ank has given consideration to
settin g up a special sm all loan d ep art
m ent, Mr. D abelstein as y et does not
feel th a t the volum e in a b ank of his
size is g reat enough to w a rra n t such a
step. The b ank does some financing
of new cars, b u t m akes no loans on
used ones.
AVhen a new borrow er comes to th e
O lm stead C ounty B ank & T ru st Com
pany for a personal loan, he is given a
loan application card to fill out in de
tail, an sw ering num erous questions.
R ochester is fo rtu n ate in having a
v ery good local credit bureau, and in
m ost instances th e b ank can get a com
plete re p o rt on th e applicant from th is
source. The applicant is also asked if
he has any objection to som eone from
th e b ank consulting w ith his em polyer,
and in m ost cases this req u est is
g ran ted although th e b ank w ill n ot do
so if the applicant objects. W hen em
ployer consultation is refused th e b an k
has plenty of o ther sources from
w hich to obtain th e desired inform a
tion, b u t such a refusal tends to m ake
the b ank investigation even m ore
thorough, if th a t w ere possible. Of
course m any req u ests come from ap
plicants w ho have been form er bor
row ers and in these cases th e b an k is
in a position to p re tty w ell know
w h eth er th e credit is good.
W ith an in stitu tio n of th e size and
n a tu re of th e Mayo Clinic located
there, it follows th a t R ochester, espe
cially d uring th e w arm er m onths of
the year, w ould have a large floating
population. In practically every in
stance of a person com ing to The
Clinic for m edical atten tio n , he or she
is accom panied by a t least one re la
tive and in m any cases w hole fam ilies
w ill m ake th e trip from th e hom e
(T u rn to page 70, please)
Northwestern Banker Septem ber 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
16
N
ew s
OF
a n d
THE
B A N K IN G
V
ie w s
W O RLD
By Clifford DePuy
J. .JOHNSON, senior vice presi. d ent of th e A m erican N ational
B ank of St. Paul, is a reg u lar read er
of th e N orthwestern B anker, and in a
recen t le tte r to us, said:
“I alw ays read every issue of th e
N orthwestern B anker. Y ou p u t out
one of th e m ost a ttra c tiv e ban k in g
m agazines th a t comes to m y desk.”
G
S tu a rt Chase, in a recen t article on
“The T w ilight of C om m unism ”, ex
plains his view by saying:
“If you have an oil-burning furnace,
you can easily see w hy com m unism is
not com ing to th is country. By com
m unism , I m ean th e sta n d a rd concept,
developed by Karl Marx, of a society
w here th e w o rk ers depose th e cap ital
ists and set up a dictato rsh ip of th e
pro letariat.
“T his p rogram has scared th e ta r
out of solid citizens all over th e w orld
for m any years. B ut th e pro g ram is
dying, and th e th e rm o sta t on y o u r
w all tells w hy. B efore you had an oil
b u rn e r you shoveled coal, or m aybe
you w restled wood. You also w restled
ashes. You—or som ebody in y o u r
house—used y o u r m uscles, grew th o r
oughly hot, d irty and profane. You
w ere, w hile you w restled and swore,
not a bad illu stra tio n of th e M arxian
p ro le ta ria t.”
Be on th e lookout for th e fake chain
letter schem e w hich is now o perating
u n d er th e guise of p atrio tism and is a
racket.
The le tte r reads as follows, “B uy a
tw enty-five cen t d efen se savin gs stam p
now from any b ank or post office and
m ail it to th e person w hose nam e a p
pears at th e top of th is list. Make
five copies of th is le tte r leaving off th e
nam e a t th e top and add y o u r nam e to
th e bottom . T hen send a copy to five
friends w ho you know w ill keep th e
chain active. In th is w ay you w ill
help y o u r co u n try and yourself. A p
p roxim ately $781.25 in d efen se stam ps
w ill be returned to yon. T his is a p rac
tical m ethod of obtaining y o u r de
fense stam ps and p atrio tically aids our
U nited States. H ow ever, if you can
not, or do n o t w ish to obtain y o u r
stam ps in th is m anner, please give th e
lette r to one w ho is in terested in order
to keep th e chain active and th e sale
of th e stam ps going.”
Northwestern Banker Septem ber 19bl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
H enry M orgenthau, Jr., Secretary
of th e T reasury, is now prom oting
Trving B erlin ’s new song, “A ny B onds
Today?”
In a recent postcard sen t out by the
T re a su ry D epartm ent, he says, “This
sp ark lin g new m elody, ‘A ny Bonds
Today?’ com posed by Irv in g B erlin
and copyrighted by H en ry M orgen
th au , Jr., S ecretary of th e T reasury, is
now available for general use in con
nection w ith th e sale of Defense Sav
ings Bonds and Stam ps.
“A ny reasonable n um ber of song
sheets w ill be gladly sent w ith o u t
charge, on request. Sim ply te a r off
and m ail back th e attach ed card.”
W ell, th ere have been stran g er
th in g s happen in th e T reasu ry De
p a rtm e n t th a n selling m usic.
In addition to a possible shortage of
gas th is w inter, anti-freeze as w ell w ill
be on a sm aller scale as production of
sm okeless pow der w ill take 75 m illion
gallons of alcohol.
If you th in k th a t the life insurance
com panies h a v e n ’t done a good job in
A m erica, you w ill be in terested to
know th a t benefits and credits paid to
U nited States policyholders and bene
ficiaries since 1843 have exceeded total
prem ium s paid by one and one-half
billion dollars. C ertainly th a t is a
good record.
Our p resen t ra te of m erch an t con
stru ctio n is one ship every four days
and by th e m iddle of 1942 it w ill be
tw o sh ips a day. T his w ill p u t us in
fro n t ra n k afte r th e w ar is over be
cause th ere w ill be a world-wide sh o rt
age of ships after th e fighting stops.
It is estim ated now th a t w h olesale
prices w ill go up 6 per cent, farm
prices 10 per cent, and th e cost of liv
ing 3 pet* cent in th e n ex t th ree
m onths. These tendencies cause th e
public to increase th e ir p u rchasing
pow er now and th u s stim ulate th e in
flationary m ovem ent.
Speaking of d ru n k en drivers, have
you h eard th e statem en t ab out the
brain less oldtim er w ho “d idn’t know
it w as loaded”, and w ho has been re
placed by th e d rin king d river w ho
didn’t k n o w he had been.
If you are in terested in quiz pro
gram s, perh ap s you w ould like to an
sw er these questions w hich w ere given
before th e A dvertising Club of New
York recently:
“W hich of the following cities is not
th e site of one of the tw elve Federal
R eserve Banks: M inneapolis, R ich
mond, Denver, Cleveland, Boston, Dal
las, St. Louis?
“On w h at bills do th e follow ing pic
tu re s appear: W ashington, Jefferson,
Chase, H am ilton, Lincoln, F ranklin?
“If you have six coins am ounting
to $1.15 b ut you can’t m ake change
for any coin w ith them , w h at are the
six coins (no tw o w ill equal any of
the others)?
“E xplain th ree out of four of the
following: BUCKET SHOP, ROUND
T R IP, CATS & DOGS, W ASH SA LE.”
F ran k T. K ennedy, p a rtn e r of C. J.
D evine and Company, specialists in U.
S. G overnm ent securities, believes
that, “E ventually, we m ight expect de
fense ex penditures to be provided for
p rim arily outside th e com m ercial
b anking system . If at th e sam e tim e,
w e approach our tax problem m ore
courageously and p u rsu e a vigorous
price control and p rio rity program , I
see no reason for th e im m ediate u tili
zation of credit restrictiv e pow ers by
th e R eserve au thorities, even if these
pow ers are granted. B ut th e very
th re a t of these new pow ers could p ro
duce a som ew hat low er m ark et level
in th e U nited States G overnm ent bond
m ark et.”
One firm w hich specializes in Gov
ern m en t securities m akes an in te re st
ing point about any fu tu re plans for
fu rth e r devaluation by saying, “In th e
final analysis, any reso rt to fu rth e r
devaluation of curren cy w ith respect
to th e go v ern m en t’s holdings of gold
and silver, should be regarded as a
postw ar subject. Obtaining th eoretical
profits from such m oney m easures for
the purpose of paying public debts
w ith devalued national curren cy is an
ancient trick and ev il device w hich
b rings n eed less public suffering in its
w ake.”
A. J. M ulroney, w ho resigned re
cently as deputy C om ptroller of th e
C urrency to becom e vice p resident of
th e Chicago F ed eral R eserve Bank, is
a n ative of Iow a and d uring the 1933
banking holiday w as in charge of re
organizing all national banks in eight
cen tral and n o rth w estern states.
W estbrook P egler, w ho is one of the
few colum nists in A m erica w ho really
says w h at he th in k s about th e politi(T u rn to page 38, please)
17
PROSPERITY
"Rains"
IN THE
DAKOTAS
Increased num bers of livestock on th e farm are co n trib u tin g to
p ro sp erity in the D akotas. Sheep like these are found on many
farm s in the two states.
North Dakota and South Dakota Tenants Rapidly Becoming Landlords
E R H A PS m ore th a n an y o th er two
states in th e U nion, N o rth D akota
an d South D akota depend upon th e
products ta k e n from th e soil for th e ir
w ealth. A gricu ltu re is big business in
the D akotas, and upon th e p ro sp erity
of th e D akota farm er depends th e suc
cess of all business in th a t area, in
cluding banking. A nd a y ear or tw o
ago p ro sp e rity began reach in g into th e
Dakotas, u n til this year, w ith m uch
of th e golden h a rv e st in th e bin, and
m ore flowing into it every day, N orth
D akota and South D akota are piling
up th e black figures in th e ledger.
T h ere is an organization in each of
th e D akota states th a t has done m uch
to p u t th em into th e p rosperous col
um n. T hese tw o organizations have
done, and are doing, a g ran d job in
prom o tin g th e b est in te re sts of a g ri
cultu re. T h eir pow er for ren d erin g
service extends to ev ery th in g b u t the
w ea th e r—as y et th ey h a v e n ’t found a
w ay to control th a t—b u t th is y e a r the
w ea th e r cooperated w ith b ountiful
rain s w ith th e re su lt th a t th e D akotas
are th e gard en spot of th e N ation. W e
refer to th e G reater N orth D akota
A ssociation and the G reater South Da
kota A ssociation.
A ssociations such as these need an
active head—a so rt of sp ark p lu g to
keep the zip in every pro ject and keep
the w hole m oving fo rw ard to th e
m an y goals set for accom plishm ent.
B. E. Groom, se cretary and chairm an
of th e a g ric u ltu ra l com m ittee of th e
G reater N orth D akota A ssociation, and
P
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Federal Reserve Bank of St. Louis
George A. Starring, executive vice
p resident and tre a su re r of th e G reater
South D akota A ssociation, are th e two
m en w ho supply th e spark, and are
building up m ore voltage all th e tim e.
Space will not perm it description of
all th e p ast and p resen t activities of
Mr. Groom and Mr. S tarring, b u t we
briefly refer to a few.
N o rth D akota farm ers have bought
n early 4,000 farm s du rin g th e first six
m o n ths of 1941, a statew ide su rv ey of
th e G reater N o rth D akota A ssociation
discloses.
“P roof th a t farm ers everyw here in
N o rth D akota have faith in farm lands
an d a desire to own th e ir own farm
hom es is contained in th e re tu rn s re
ceived from each county,” says B. E.
Groom, w ho assum ed th e leadership
in th e cam paign last year, w ith the
aid of state new spapers, w hich adm it
tedly changed th e m orale of th e state.
A to tal of 7,000 farm s w ere sold last
year, a record likely to be beaten d u r
ing 1941.
More th a n half a m illion acres of
farm land w as sold in N orth D akota
last spring.
“No rep o rt of sales has been re
ceived from th e state school land de
p a rtm e n t,” Mr. Groom says, “and then,
of course, independent real estate deal
ers all over th e state have m ade m any
sales of w hich we have no record. W e
feel it is conservative to estim ate th a t
a t least 4,000 farm s have been sold d u r
ing th e first half of 1941.”
C u rrent crop prospects, com bined
w ith good re tu rn s from livestock, and
low prices, low in te re st rates and long
term contracts offered by land holding
com panies, are prom pting actual oper
ators to acquire land th ey have w anted
and th ey can use to advantage,” Mr.
Groom declares.
“In years past m ost land purchases
w ere m ade follow ing th e crop season,”
Mr. Groom says. “Now w ith the as
sured incom e from livestock and splen
did crop prospects, the buyers are not
w aiting u n til fall to m ake th e ir farm
selections. T hey close purchase con
tracts as fast as th e ir financial ability
p erm its.”
N orth D akota has gone a long w ay
from one-crop farm ing in 1941, Mr.
Groom holds, calling atten tio n to th e
fact th a t sales of livestock, dairy and
po u ltry products last y ear am ounted
to $88,125,665.
“The p resen t livestock income, w ith
good prices for cattle, d airy products,
sheep, wool, hogs and po u ltry elim i
nate m uch of th e risk of one-crop
w heat farm ing, and th e basic in d u stry
of th e state has been stabilized,” Mr.
Groom says.
In a recen t b u lletin to m em bers,
George S tarring, executive vice p resi
dent of th e G reater South D akota Asso
ciation, com m ents on several item s as
follows:
“D uring th e p ast tw o fiscal y ears
farm ers in 54 com m unities in South
D akota borrow ed from th e ir local
ban k ers $4,005,213 for the purchase of
(T u rn to page 75, please)
Northwestern Banker Septem ber 19bi
18
How the
Attny
Pays Its Bills
Disbursements of the Financial Department of the United States Army
Now Amount to $500,000,000 Per Month
AYING th e bills and keeping tabs
on all m o n etary tra n sa c tio n s re
q uired to m ain tain th e extensive
U nited States m ilita ry estab lish m en t is
th e im p o rta n t non-com bat function of
th e U nited S tates A rm y ’s F in an ce De
p artm en t.
Since its creation, th e F in an ce De
p a rtm e n t has absorbed all th e ad m in
istrativ e supervision involved in th e
disbursem ent, exam ination, and ac
counting of funds re la tin g to th e m ili
ta ry and Civilian C onservation Corps
activities of th e W ar D epartm ent.
The d ep artm en t does n o t select th e
articles to be pu rch ased by th e arm y,
nor does it choose th e p ersonnel to
w hom th e salaries w ill be paid.
H ow ever, th e F in an ce D ep artm en t
expends th e m oney to pay th e obliga
tions legally created by th e service on
w hose b ehalf Congress m akes funds
available. It follows th e n th a t th e fi
nance office w ould pay for ev ery th in g
from p ru n es and sh oestrings to 28-ton
ta n k s and flying fortresses.
T he F inance D ep artm en t perform s
various services for th e officers and
en listed m en of th e arm y. F o r exam
ple, it conducts a savings agency for
en listed m en com parable w ith th e larg
er savings b anks of th e country. E n
listed m en m ay deposit such am ounts
as th ey desire to save w ith th e F i
nance D epartm ent. In re tu rn th ey re
ceive in te re st a t th e ra te of 4 p er cen t
annually. Savings w ith accum ulated
in te re st is paid to a m an on exp iratio n
of his te rm of en listm en t or upon dis
charge from th e m ilita ry service.
A no th er service of th e d ep artm en t is
disbu rsin g p o rtions of pay of officers
and en listed p ersonnel for th e care
and m ain ten an ce of th e ir fam ilies and
dependents or for th e purpose of pay
ing in su ran ce p rem ium s due to com
m ercial in su ran ce com panies. These
designated allotm ents are p ro m p tly re
m itted on th e first day of th e m o n th
P
Northwestern Banker Septem ber 19^1
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Federal Reserve Bank of St. Louis
no m a tte r in w h a t p a rt of th e w orld
the m an m aking th e allotm ent m ay be
on duty.
The F inance D ep artm ent likew ise
collects and rem its prem ium s due on
g o v ernm ent or national service life
insurance. Collections are m ade eith er
by th e allotm ent system or on th e pay
rolls and th en tu rn e d over to th e V et
eran s A dm inistration. T he finance
office checks all prem ium s due, th u s
p rev en tin g th e lapsing of policies
w hich m ay have been overlooked.
Consolidation and control of all dis
b u rsin g functions w ith in one d e p a rt
m en t has m ade it possible to liquidate
th e financial obligations of th e W ar
D ep artm ent prom ptly, as accounts be
come due and payable. T here are b u t
few instances w here com m ercial bills
rem ain unpaid for a period longer
th a n 30 days. Troops and personnel
of the m ilitary service are paid on the
last day of each m onth by reg u lar dis
b u rsin g officers and th e ir ag en t offi
cers.
P rovisions of th e B udgeting and Ac
counting Act of 1921 req u ire a budget
officer for each governm ent d ep art
m ent. In th e W ar D epartm ent the
function has been assigned to th e
Chief of Finance.
E ach m onth th e disbursing officers
of th e m ilitary establishm ent subm it
to th e Chief of F in an ce'a statem en t on
th e condition of th e ir disbursing ac
counts. These statem ents, described
as “accounts c u rre n t,” to g eth er w ith
all supporting vouchers and docum en
ta ry in stru m en ts are given a thorough
exam ination in th e F inance D epart
m ent. If e rro rs are detected th ey are
rep o rted to th e disbursing officer for
correction. T he accounts are th e n for
w arded to th e g o v ern m en t’s general
accounting office for settlem en t and
clearance to th e disbursing officer.
F ollow ing th e exam ination of these
accounts by th e accounting office all
disbursem ents th erein are analyzed by
th e office of th e Chief of Finance and
posted to th e ledgers according to ap
prop riatio n titles and to th e classifica
tion of accounts w hich record th e p u r
poses for w hich th e funds w ere ex
pended. These ledger accounts supply
the inform ation w hich constitutes the
basis of ad ju stm en ts in ap p ropriation
accounts w ith th e T reasu ry D epart
m en t and provides the necessary data
for estim ates w hen th e W ar D epart
m en t budget is being prepared.
D isbursem ents for m ilitary purposes
in th e fiscal y ear 1940 m ade by officers
of th e F inance D ep artm ent am ounted
to $675,136,940. N on-m ilitary expendi
tu res in th e sam e y e a r w ere $1,588,202.
M ilitary d isbursem ents for th e fiscal
year of 1941 have increased over the
previous year to th e ex ten t th a t dis
bursem en ts now am o u n t to approxi
m ately $500,000,000 m onthly. W hen it
is considered th a t each disbursing offi
cer is held personally accountable for
every cent en tru ste d it can be seen
readily th a t extrem e care is tak en in
safeguarding funds an d in m aking
only paym ents w hich are correct and
authorized.
A ccounts for all item s of pro p erty
purchased for th e arm y are audited by
the F inance D epartm ent. These in
clude such item s as arm y tran sp o rts,
real estate, buildings, docks, piers, and
m achinery, as w ell as supplies and
m aterials bought and issued to clothe,
feed, and equip th e troops for service.
In case of shortages or dam age to
property, th e Chief of Finance m akes
recom m endations to th e Secretary of
W ar as to w h at person, if anyone, is
responsible for th e loss. Sim ilarly, he
m akes recom m endations as to the lia
bility of th e governm ent in connection
w ith claim s for dam age to p rivate
property.
The F inance D ep artm ent acts as fis(T u rn to page 99, please)
I
19
Northwestern Banker Septem ber Í9M
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Federal Reserve Bank of St. Louis
20
Streamlining the Bank
How Efficiency and Beauiy can be made the Basis for Broader Service
-A.
IG H T E E N m onths ago a sm all
group of Chicago business m en
and b a n k ers felt th e need for a
h an k in th e financial cen ter w hich
w ould provide for the th o u san d s em
ployed in th e “Loop” th e com plete
banking, loan and tr u s t facilities w hich
as a ru le only those in th e higher-in
come brack ets enjoy. T hey knew th a t
th e financial d istrict com prised b anks
of th e first m agnitude, old established,,
highly regarded, providing all usual
services. So it w as obvious th a t th ey
could not a tte m p t to build th e b an k
th ey contem plated on stric tly com peti
tive lines b u t w ould have to sense new
ban k in g needs, in trig u e th e in te re st of
those w ho feel th a t th e benefits of
dow ntow n ban k in g are n o t w ith in
th e ir reach, and use creative im agina
tion to secure th e b u siness of th e
thou san d s of w o rk ers and sm all con
cerns using th e Loop b anks in a lim ited
w ay or not a t all. L arge accounts
would of course be welcome, big b u si
ness w ould be served w ith m odern
efficiency, b u t for its p a rtic u la r con
trib u tio n to ban k in g progress th is
bank w ould m eet th e needs of th e
m an y w ith expanding pocketbooks
ra th e r th a n th e w ealth y few w ith
dim inishing incomes. H ow th is com
p arativ ely sm all bank, su rro u n d ed by
th e “big g u n s” of th e in d u stry is
achieving its objective and w in n in g
the cooperation of its large competi-
E
By Laurance A rm our
Chairman of the Board
LaSalle National Bank
Chicago
tors, seem s a story w o rth th e telling.
And th is is fu rth e r indicated by th e
visits of b an k ers from points east as
fa r as M aine and w est as far as Texas,
w ho have come to see th is new th in g
in th e b anking w orld and to adopt its
ideas.
The new b ank w as inau g u rated
th ro u g h th e purchase of control of a
w ell-established b an k located ju st be
yond th e financial district. It th en
becam e th e La Salle N ational Bank. A
location in th e financial cen ter of Chi
cago w as secured b u t it took a y ear of
h u m an itarian , financial, efficiency, a r
ch itectu ral and decorative planning
and m onths of construction, before th e
doors of the new q u arters could be
opened. These doors typify th e spirit,
m odernity and stream lined efficiency
of th e new bank. W ith all th e m y stery
of a m agic carpet, each plate glass
door opens autom atically as th e cus
tom er is about to en ter and closes
g ently behind him. A bow ing and
scraping doorm an of th e old school
could not perform th is rite m ore hos
pitably. The invisible doorm an is an
“electric eye” and afte r m onths of op
eratio n it never fails to in terest th e
visitor and to convey th e im pression
th a t th e b ank is as m odern in its
view point, facilities and services as
its en tran ce is unique.
The v isito r’s su rp rise is heightened
by his im pressions of th e interior.
H ere are no cold m arbles, tiles and
forbidding m etal b u t th e com fort and
styling of th e stream lined train , th e
salon of an ocean liner or th e lobby of
th e ultra-m odern hotel or club. A nd
w hat is the m eaning of this th e v isito r
m ay ask before he exam ines th e de
tails w hich increase the appeal of th e
whole.
In answ ering, it m ay be said th a t
every new th in g m an ever created
began w ith a th o u g h t and th e La Salle
N ational is no exception. In this case
the th o u g h t w as two-fold—first, th a t
th e b ank m u st serve not only g reat
corporations and o ther custom ers w ith
large resources b u t business m en and
w om en earn in g salaries or ow ning
sm all businesses w ho need banking
facilities geared to th e ir relatively
sm all needs. A nd so the first th o u g h t
of th e creators of th is bank w as th a t
it w ould be w h at its slogan describes—
“A C om m unity B ank in th e H eart of
Chicago’s F inancial D istrict.” And
this led to the second p a rt of th e idea,
th a t the ban k should appeal to th ese
people by actually h arb o rin g a com-
H ere in the pictu re a t the le ft is th e ju n io r officers and new business section in the L a Salle N atio n al B ank. A tten tio n
is called to the m irrored effect. On the rig h t is the p erso n al cred it dep artm en t, w ith open trough type of fluorescent
lig h tin g — in use in th is section exclusively.
Northwestern Banker Septem ber 19M
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Federal Reserve Bank of St. Louis
j
?
21
Above, left, is the loaning officers section in the L a Salle N atio n al B ank as seen from the m ain lobby; tiling cabinets
are concealed, and both incandescent and fluorescent lig h tin g are used. The lobby picture a t the rig h t shows the de
p o sito rs’ counters; note th e absence of w ick ets or w ire enclosures and u n obstructed view.
m u n ity sp irit to be felt by every p e r
son en te rin g its doors, and by giving
them a settin g for th e ir b an k in g in
w hich th e y w ould find th e satisfac
tions of beauty, com fort and efficient
service.
H ow could these effects of n eighbor
liness be obtained an d by w h a t could
th e b an k be guided to provide th is
atm osphere?
Some tw e n ty y ears ago th e first of
th e palatial m oving p ictu re houses
w ere b u ilt and so g re a t w as th e r e
sponse to th e ir lu x u ry th a t th e ir cre
ato rs w ere rew ard ed w ith w ealth and
som e have becom e m agnates of H olly
wood. E ach new m ovie house grew
rich e r th a n th e last—th ic k e r carpets,
m ore deeply u p h o lstered seats, elab
orate fu rn ish in g s, oil paintings, air
conditioning. A nd w hile one m ay see
his favorite screen s ta r for tw entyfive cents, Jo h n P ublic is quite w illing
to pay th re e tim es as m uch to tak e his
girl to see h e r in th e gilded, m irro red
and flatterin g en v iro n m en t of th e pic
tu re palace. H ere w as overw helm ing
evidence th a t th e people love b eau ty
and com fort and m ig h t respond to it
in a bank.
More recen tly th e stream lin e tra in
m et w ith in stan tan eo u s response and
created for th e railro ad s m uch p assen
g er travel. C atering to th e desire for
speed and lux u ry , so po p u lar w as its
appeal th a t th e roads soon broadened
th e m a rk e t by p u ttin g on all-coach
stre a m lin e rs quite as handsom e as th e
P u llm an s and in som e w ays as lu x u r
ious. The response enabled th em to
reg ain m uch of th e traffic th e y w ere
losing to o th er m ethods of travel.
T hese dem o n stratio n s of public
taste indicated to th e p lan n ers of th e
La Salle N ational th a t th e public w ould
ap p reciate such su rro u n d in g s in b an k
ing and helped them to draw a m ental
p ictu re of a b ank in terio r w hich w ould
have th e w arm th and com fort of a
living-room in one’s club and th e effi
ciency of a stream line train.
W ith these objectives in m ind, the
read er is ready for his “little jo u rn e y ”
th ro u g h th e bank, and m ay judge for
him self w h eth er th is bank, th e first of
its kind, is likely to be th e only one so
designed, or w ill inspire and serve as
a m odel for the banks of th e future.
M arble and steel are conspicuous by
th e ir absence. The walls, pillars, p an
els, counters, executive offices, and
cu sto m ers’ conference room s are of
n a tu ra l finish b u tte rn u t wood, soft in
tone, and rich ly grained. The a u ste r
ity and forbidding form ality of te lle rs’
cages have been elim inated by “let
tin g dow n th e b a rs”-—in fact th ere are
no bars. The tellers serve from twolevel wood counters w hich conceal
th e h andling of cash and checks b u t
im pose no obstacle to friendliness. As
no living room is com plete w ith o u t
flowers, m etal containers holding
p lan ts are placed on each te lle r’s coun
ter, and each of these bears a standard
w ith th e te lle r’s nam e.
T he charm of th e w oodw ork is en
hanced by in direct lighting from
dom es flooded by lam ps w ith m etal
shades, and by fluorescent lighting of
th e in set type w hich p rev en ts glare
and shadows. The lobby is handsom e
ly carpeted, and this, w ith sound ab
sorbing ceilings, creates an atm os
ph ere of quiet and repose d u ring the
busiest hours. In h arm ony w ith the
w oodw ork, m odern lighting and car
peting, are th e specially designed
hand-m ade F ren ch period fu rn itu re of
b u tte rn u t m atching the w oodw ork, the
drapes and th e Venetian blinds; book
cases ap p aren tly containing the clas
sics b u t in reality cabinets for th e
b a n k ’s files; m etal b rack et lam ps on
w alls and pillars; and o ther featu res
p ertain in g to an ultra-m odern interior.
E v ery dep artm en t has its own confer
ence room s for custom ers, containing
a desk, leath er chairs, a cabinet and
a phone. It seems unnecessary to add
th a t such q u a rte rs are com fortably
air-conditioned.
All equipm ent is m obile—u n attach ed
to floors and counters, m uch of it on
w heels, th u s adding to th e efficiency
of th is m odern bank. Due to th e ab
sence of w ickets, th e tellers behind th e
counters can be so placed th a t no v a
cant stations are a p p aren t in m ini
m um load periods. On th e o th er hand,
additional volum e can be tak en care
of in stan tly by adding m ovable tell
e rs’ u n its and tellers. S ignature card
cases and statem en t files are portable.
Adding m achines, posting equipm ent,
desks—all m ay be m oved a t a m o
m en t’s notice to th e spot m ost effec
tive for efficiency. N ot only th is—the
mobile system w ill perm it a larg er ex
pansion in th e b a n k ’s business w ith
out any change in its stru c tu ra l a r
rangem ents. Key type telephones w ith
both tru n k and intercom m unicating
lines, telautographs, dum b w aiters,
cabinets concealed in th e paneling,
custom ers’ w ritin g desks, in terch an g e
able electric signs, concealed wastepaper containers, spacious w orkroom s
—all these give the custom er efficient
service and provide an a ttractiv e en
v ironm ent for th e employes.
W hen the La Salle N ational B ank
opened its new home, to th e officers
and directors it w as like th e first n ight
of a play. W h at w ould be th e reaction
to th e advanced a rch itectu ral and deco
rativ e treatm en t? W ould th ey be re(T u rn to page 24, please)
Northwestern Banker Septem ber 19M
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Federal Reserve Bank of St. Louis
A FRIENDLY W ELCOM E
fro m
I O W A ’S F R I E N D L Y
BANK
Bankers attending the 55th Annual
Convention of the Iowa Bankers
Association—Des Moines, September
7 -1 0 th — are cordially invited to
make our bank their headquarters.
CENTRAL NATIONAL
BANK and TRUST COMPANY
D E S
W
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Federal Reserve Bank of St. Louis
M O I N E S
. J . er ^ C e d e r a i C ò e p o ó it E n d u r a n c e
(C o r p o r a tio n
S H a Jz e
W
Ì r t l%
WM. J . G O O D W IN
E. F. BUCKLED
C hairm an of Hoard and P resid e n t
V ice-P resid e n t
V ice-P resid e n t
I ic e-P resid en t
j . r . CAPPS
L L. W R IG H T
C ashier
T r u s t Officer
E M M E T T E. JO H N S
I ssista n t V ice-P resid e n t
LEHM AN
PLU M M ER
V ice-P resid e n t
1 R E D H . ( J U lN E K
JO H N
W. HAW K
T. DONHOW K
IR W IN
ABRAM
I säis tant V ice-P resid en t
A ssista n t C ashier
J. E. Q U IN ER
H. C. W INDER
D. R. VVTTHINGTON
A ssista n t C ashier
A ssistant C ashier
A s s is ta n t
I ic e-P resid en t
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Federal Reserve Bank of St. Louis
A s s is ta n t C ashier
FRANK
R. W ARDEN
G. VV. BA RTM ESS, JR .
A s s is ta n t C ashier
G EO . L. N ISSL i
I ssista n t T ru s t Officer
24
STREAMLINING THE BANK
(C ontinued from page 21)
A
RECENT SURVEY i n d i cates that among commercial
banks, this institution handles
the largest daily volume of
transit items in the country.
This fact has more than a sta
tistical interest.
Business seeks and flows nat
urally
toward
that
agency
which can provide the most effi
cient service. The greater the
volume, the lower the costs.
You will save time and money
by sending your items to us.
. . . THE . . .
P H IL A D E L P H IA
NATIONAL
RANK
O R G A N IZ E D 1803
PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$45,000,000
M em ber of Federal Deposit Insurance Corporation
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Federal Reserve Bank of St. Louis
ceived by th e public as exem plars of
an era of closer relationships betw een
bank and custom er and of a broader
banking service to th e average m an
and wom an? T he answ er w as a dem
o n stratio n of friendliness, in te re st and
enthusiasm exceeding anticipations.
In the m onths th a t have passed th e
experim ent has m et th e te st and ju s
tified itself.
B ut public approbation w ould m ean
little if it did not include th e sp irit and
services of th e in stitu tio n . B earing in
m ind th a t its p rim ary purpose w as to
serve a g reat group of su b stan tial peo
ple w ho could not find in th e Loop in
any one ban k th e com plete financial
service th e average individual m ay re
quire, th e new b an k endeavored to
m ake its functions as m odern as its
q u arters. It adopted th e “no m in i
m um balance” for its checking ac
counts, so th a t an y w o rk er w ith only
a salary check to deposit m ay enjoy
the advantages of a check book. P e r
sonal credit is extended th ro u g h v a ri
ous types of loans to provide m oney
for em ergencies; for such constructive
purposes as th e acquisition of an au to
mobile, hom e furnishing, consolidation
of indebtedness and vacations — for
an y th in g th a t m ay help in a crisis,
solve a problem , b etter a condition or
m ake life m ore abundant.
The financing of insurance p re
miums, excepting life, is a unique serv
ice th a t dovetails w ith th e in te n t of the
La Salle N ational. T he assured is en
abled to take advantage of th e low er
cost long-term rates th ro u g h w hich
su b stan tial savings are effected, and
pays th e prem ium s on th e m onthly
budget plan. T his service is ren dered
through th e insurance agent b u t aids
the corporation or individual by free
ing w orking capital for o ther uses. It
helps th e in surance m an to sell m ore
insurance and to his client he says,
“T his is th e insurance plan th a t fi
nances itself!”
Com pleting th e services of th is m od
ern b ank is th e tru s t departm ent,
w here th e sam e sp irit prevails. H ere
one finds the desire to help not only
the m an w ith a large fo rtu n e b u t
equally so th e m an of m odest incom e
who w ishes to assure th e continued
w elfare of his fam ily. Likew ise, the
tru s t d ep artm en t serves th e sm all as
well as th e large corporation as tra n s
fer agent, reg istrar, tru ste e in financ
ing operations and in o ther tru s t ca
pacities. In brief, th is b an k w ill ac
cept tru sts in th e low er brackets, is
in terested n o t only in large b u t in rela
tively sm all estates, gives personal at(T u rn to page 101, please)
25
AN EXTRA CLERK F
r
EE DURING SEPTEMBER
KOLECT-A-MATIC Mortgage Record
Im a g in e !
D u rin g
m onth
the
in
M o rtg a g e
S e p te m b e r
y e a r,
R e co rd
a
an d
K o le c t - A - M a t ic
e v e ry
in c re a s e s
p osting
w hen
c o u p le d
a cu te
and
w ith
a
lim ite d
s c a r c ity
w o rkin g
of
tra in e d
hours,
have
a c c o u n t.
cut
N ow —
tim e ,
slash
e c o n o m ic a l
co st s a vin g s
of
o p e ra tin g
co lle c tio n
e a ch
co sts,
and
e s ta b lis h
c o n tro l.
an
FREE C A T A L O G
p ro b le m — is th e tim e to in v e s tig a te the e ffic ie n c y
o p e ra tin g
In
K o le c t - A - M a t ic w ill help you end w in d o w -lin e s,
w a itin g
e ffe c tiv e ,
p erso n n e l,
c re a te d
re c o rd .
tio n , h isto ry an d s t a tis t ic a l d a ta re g a rd in g e a ch in d iv id u a l
and
re fe re n c e sp e e d b y as m uch as 5 0 /D! E ach
cle rk e a s ily d oes th e w ork o f tw o !
is a C E N T R A L I Z E D
v is ib le p o ck e t are g a th e re d co m p le te a c c o u n tin g , c o lle c
K o le c t - A - M a t ic
K o le c t - A - M a t ic .
W r it e to d a y fo r our fre e , new K o le c t- A -
K o le c t - A - M a t ic
is
fo r pen or m ach in e
its u n iq u e
The
M a t ic
sp e e d
th e
n e w e st,
fa s te s t
p o stin g — no o th e r even
m akes
v isib le
m arg in
c o lle c tio n
w ith
fo llo w -u p
an d a ro b o t " fo r e m a n " to g re e n
th e
■B m T %
o v e rlo o k in g
its
a u to m a tic .
P#*’’****
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m ost
It
gage
AS
su p e rvisio n is m in im ize d and e xe c u tiv e tim e s a v e d .
fe a tu re s o f a
im p o rta n t
re c o rd
50%
Branches
banks
IN
h ave
o p e ra tio n s A T
T IM E
AND
K o le c t - A - M a t ic
M o rtg a g e
a d o p te d
th is
re v o lu tio n a ry
A
S A V IN G
M O N EY!
OF
W r it e
AS
M UCH
to d a y .
m e.
YORK
Everyw here
6 . F o re c lo s u re
7, A d v a n c e s P a id b y Bank
10 . T y p e o f B u ild in g
I I . Type of O ccu p a n cy
2 . R e co rd " o u t o f f ile "
ALL THESE FACTS,
a t a Glance
12. D a te w hen P aym en ts a re Due
13. P a y m e n t A r r e a rs
4 . D e p o s it A c c o u n t
5 . R e n t A s s ig n m e n t
and
L e t us p ro ve how you, re g a rd le s s o f the size
rapid
BUFFALO, NEW
3 . T y p e o f M o rtg a g e
illu s tra te s
DEPARTMENT
Rgm inGTon
1. M o rtg a g e n u m b er
th a t fu lly
o f yo u r b an k, can sp e e d , s im p lify , and co n tro l yo u r m o rt
p re
C le r ic a l
BANK
c a ta lo g
In the p a st fe w m onths o v e r ten o f th e c o u n try 's
new le d g e r.
p erson n el
"m u s ts ."
M a tic
d e s c rib e s the c le r ic a l s a vin g s an d co n tro l
G ra p h - A -
cle rk s— e ffe c t iv e ly
o f im p o rta n t
\
a p p ro a c h e s
se rv e s as an in fle x ib le re m in d e r to e x p e rie n c e d
v e n tin g
le d g e r
or o ffe rs so m an y unusual a d v a n ta g e s .
K o le c t - A - M a t ic
sig n a l
n a tio n 's
8 . R a te o f In te re s t
9 . G e o g r a p h ic a l Z o n e
14. T a x A r r e a r s
Northwestern Banker Septem ber Í 9 M
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Federal Reserve Bank of St. Louis
26
Am erican
Bankers Association
Annual Convention
CHICAGO
September
29 - O ctober
2
^
V
The Program
P. D . H O U S T O N
P r e s id e n t, A m eric a n B a n k ers A s s o c ia tio n
H
ENRY W. MORGENTHAU, Sec
re ta ry of th e T reasury, Senator
Tom C onnally of Texas, ch a ir
m an of th e U nited States Senate Com
m ittee on F oreign R elations, an d B rig
adier G eneral L eonard P. A yres, Di
recto r and C oordinator of W ar D ep art
m ent S tatistics, are am ong th e speak
ers w ho w ill address th e a n n u al con
vention of th e A m erican B ankers A s
sociation to be held in Chicago Sep
tem ber 29th to October 2nd, according
to P. D. H ouston, p resid en t of th e
A. B. A., w ho has announced th e con
v en tio n ’s program .
The four-day convention is expected
to a ttra c t some 5,000 b an k ers from all
p a rts of th e co u n try to p articip ate in
its discussions. I t w ill be c h a ra c ter
ized by tw o principal them es: “H em
ispheric S olidarity,” and “N ational De
fense F in an cin g .” The program w ill
consist of tw o general sessions, th e
an n u al m eeting of th e four Divisions
of th e Association, and a series of
round table conferences.
State Bank Division
A featu re w ill be th e celebration of
th e .twenty-fifth a n n iv e rsa ry of th e
form ation of th e A ssociation’s State
B ank D ivision a t th e D ivision’s an n u al
m eeting on M onday m orning, S eptem
b er 29th. A special program has been
arran g e d in th e n a tu re of a review of
the progress of c h a rte red ban k in g
m ade d u rin g th e tw enty-five y ears of
th e D ivision’s-life. A ddresses w ill beNorthwestern Banker Septem ber 19bl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
delivered by H a rry A. B ryant, p resi
dent of th e State B ank Division, w ho is
p resid en t of th e P arsons Commercial
Bank, Parsons, K ansas; D eane W. Malott, Chancellor of th e U niversity of
K ansas; A. L. M. W iggins, p resident
of th e B ank of H artsville, South Caro
lina, w ho is ch airm an of th e A. B. A.
C om m ittee on F ed eral Legislation; and
W illiam S. E lliott, p ast p resident of
th e State B ank D ivision and p resid en t
of th e B ank of Canton a t Canton,
Georgia. Mr. W iggins w ill presen t
th e p ast p residents of the D ivision and
Mr. E llio tt w ill speak on “A Q uarter
C entury of P rogress.”
National Bank Division
The N ational B ank D ivision’s a n
nu al m eeting on M onday afternoon,
Septem ber 29th, w ill be addressed by
the D ivision’s president, A ndrew Price,
p resid en t of th e N ational B ank of
Commerce, Seattle, W ashington; Dr.
Lionel D. Edie, econom ist, w ho w ill
speak on “B ank In v estm en ts U nder
W ar C onditions”; and F red L. O’H air,
p resid en t of th e C entral N ational
B ank, G reencastle, Indiana.
Savings Division
The Savings D ivision w ill have its
an n u al m eeting on M onday m orning,
Septem ber 29th. A ddresses w ill be
delivered by Roy R. M arquardt, p resi
den t of th e Division, w ho is vice p resi
den t of th e F irs t N ational B ank in
Chicago; and Dr. M arcus N adler, pro
fessor of finance a t N ew Y ork U niver
sity, w ho is also research director of
th e In stitu te of In tern atio n al Finance
in New York.
Trust Division
The T ru st D ivision m eeting, u n d er
th e chairm anship of its president, Carl
W. F en ninger, vice presid en t of the
P ro v id en t T ru st Company, Philadel
phia, w ill be held M onday afternoon,
Septem ber 29th, and w ill be addressed
by W. W. H inshaw , Jr., p resident of
th e C orporate F iduciaries A ssociation
of Chicago. T he m eeting w ill feature
a panel discussion on b ank m anage
m en t and th e tru s t business w hich w ill
be particip ated in by Gwilym A. Price,
p resid en t of th e Peoples-Pittsburg
T ru st Company, P ittsb u rg h , P en n sy l
vania; F red erick A. Carroll, vice p resi
dent of th e N ational S haw m ut Bank,
Boston; Louis S. H eadley, vice p resi
dent of th e F irs t T ru st Company, St.
Paul, M innesota; Jo h n W. R em ington,
vice p resident and tru s t officer of th e
Lincoln-Alliance B ank and T ru st Com
pany, R ochester, N. Y.; and A rth u r F.
Young, vice presid en t and tru s t of
ficer, N ational City Bank, Cleveland,
Ohio.
In each of these division m etings
th ere w ill be rep o rts of com m ittees
and o ther business and th e election
an d installation of new officers for the
y ear 1941-42.
State Secretaries Section
S ecretaries of S tate B ankers Asso
ciation w ill hold th e ir ann u al m eeting
27
a t th e convention on M onday a fte r
noon, S eptem ber 29th, and w ill h e a r
addresses by Jam es C. Scarboro, sec
re ta ry of th e Colorado B an k ers A sso
ciation; H aynes M cFadden, secretary
of th e G eorgia B an k ers Association;
L aud er Hodges, executive m an ag er
of th e C alifornia B an k ers A ssocia
tion; W illiam D uncan, Jr., secretary
of th e M innesota B ankers Association;
E d w ard A. W ayne, secretary of th e
N o rth C arolina B an k ers Association;
C harles F. Z im m erm an, secretary of
th e P en n sy lv an ia B an k ers A ssociation;
and A. L. M. W iggins, w ho w ill speak
on F ed eral legislation.
Round Tables
On M onday evening, Septem ber
29th, a ro u n d table conference on P u b
lic R elations w ill be held u n d e r th e
chairm an sh ip of F ra n k M. T otton,
second vice p resid en t of th e Chase N a
tional Bank, New Y ork City. Ad
dresses w ill be given by R obert W.
Sparks, vice p resid en t of th e B ow ery
Savings B ank, N ew Y ork City and a s
sociate field d irecto r of th e U. S. T reas
u ry ’s D efense Savings Staff, w hose
topic w ill be “M obilizing M oney,” and
Sam uel N. P ickard, p resid en t of th e
N ational M an u factu rers B ank, Neenah, W isconsin, ch airm an of th e A. B.
A.’s P ublic R elations Council, w hose
topic is “M obilizing Public O pinion.”
George R. Boyles, president, M er
ch an ts N ational Bank, Chicago; E rn e st
L. P earce, executive vice president,
U nion N ational B ank, M arquette,
M ichigan; and W illiam Pow ers, D irect
or of C ustom er R elations, A m erican
B an k ers A ssociation, w ill p articip ate
in a panel discussion on “M obilizing
In fo rm atio n .”
T his ro u n d table conference w ill a l
so featu re public relatio n s technique
d em o n stratio n s by m em bers of th e
Chicago C hapter of th e A m erican In
stitu te of B anking, educational section
of th e A. B. A. Cash prizes of $50,
$30 and $20 w ill be aw arded to th e w in
ning p a rtic ip a n ts in th is phase of th e
ro u n d table.
A B ank M anagem ent ro u n d table
conference w ill be held on T uesday
m orning, Septem ber 30th, a t w hich
th e public relatio n s aspects of con
sum er cred it w ill be discussed by Jo h n
B urgess, vice p resid en t of th e N o rth
w este rn N ational B ank an d T ru st
Com pany, M inneapolis, M innesota.
“Real E sta te H oldings in th e E m e r
gency” w ill be discussed by Dr. E rn e st
M. F ish er, A. B. A. D irector of R e
search in Real E sta te and M ortgage
Finance. A panel discussion on sim pli
fication of b an k operatin g procedure
w ill follow th ese addresses. P a rtic i
p an ts in th e panel w ill be D arrel G.
E nsign, a ssista n t cashier, Com m on
w ealth B ank, D etroit; W illiam J. Kin
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Federal Reserve Bank of St. Louis
nam on, cashier of th e H u n terd o n
C ounty N ational Bank, F lem ington,
N ew Jersey; and J. M. Sorensen, exec
u tive vice president, S tephens N ation
al B ank, F rem ont, N ebraska.
On W ednesday afternoon, October
1st, th ere w ill be a ro u n d table con
ference on Defense F inancing, u n d er
th e ch airm anship of J. H arvie W ilkin
son, Jr., ch airm an of th e A ssociation’s
N ational Defense Loans Com m ittee
and vice presid en t of th e S tate-P lant
ers B ank and T ru st Company, R ich
m ond, V irginia.
Speakers on th is
ro u n d table program include B enjam in
E. Young, vice p resid en t of th e N a
tional B ank of D etroit, M ichigan; M ark
A. B row n, vice president, H arris T ru st
and Savings Bank, Chicago; and P hilip
A. Benson, presid en t of th e Dime Sav
ings B ank of B rooklyn, New York.
Mr. Young w ill speak on “The Social
Effects of D efense F in an cin g ”; Mr.
B row n w ill discuss “Defense L oans”;
and Mr. Benson w ill ta lk on “Defense
Savings Bonds.”
The fo u rth ro u n d table conference
w ill be held on T hu rsd ay afternoon,
October 2nd, on C u rren t Econom ic
Problem s. Dr. P aul F. Cadman, econ
om ist of th e A m erican B ankers As
sociation, w ill preside. A lbert Wil-
28
liam Atwood of W ashington, D. C.,
w rite r on business and financial topics;
E a rl B. Schw ulst, first vice p resid en t
of th e B ow ery Savings B ank, New
York City; and Dr. Lionel D. Edie, of
New Y ork City, w ill tak e p a rt in th e
rou n d table discussion.
H ead q u arters for th e convention
w ill be th e Stevens Hotel.
Bank Women to Meet
The N in eteen th A nnual Convention
of th e A ssociation of B ank W om en
w ill be held in Chicago, Illinois, Sep
tem b er 26th to 29th, w ith h e a d q u a rte rs
a t th e Congress Hotel, according to
Miss E m m a E. Claus, presid en t of the
A ssociation and secretary -treasu rer of
th e B ankers T ru st Com pany of Gary,
Indiana.
“In a w orld changing drastically,”
Miss Claus stated, “at th e ra te of speed
th a t is b reath tak in g , problem s each
day seem to reach th e heights of com
plexity, only to assum e a new and dif
fe re n t aspect tom orrow . F orcibly th e
realization is b ro u g h t hom e to us th a t
it is of param o u n t im portance to give
serious consideration and study to
tren d s in banking developm ent in th is
THE DROVERS NATIONAL BANK OF CHICAGO
w ill b e r e p r e s e n t e d at th e f o r th c o m in g
IOWA B A NK ERS CONVENTION
country; to keep ourselves inform ed
of such developm ents in th e co u n try
as a w hole and in the com m unities w e
serve.
“Surely th ro u g h an intelligent appli
cation of th e know ledge and inform a
tion so acquired,” she continued, “w e
m ay effectively assist in answ ering th e
needs of our banks, our custom ers and
our com m unities. More th a n ever w e
need th e stim ulation and atte n d a n t en
couragem ent gained from personal
contact w ith o thers w ho have a com
m on in te re st in the solution of such
problem s as face us today.”
The officers of th e organization are:
Miss E lizabeth S. Grover, Chase N a
tional Bank, New York City, vice p res
ident; Miss G ertrude G reenw ald, B ank
ers T ru st Company, Gary, Indiana, re
cording secretary; Miss G ertrude M_
Jacobs, M arshall & Illsley Bank, Mil
w aukee, W isconsin, corresponding sec
retary , and eight regional vice presi
dents, one from each division.
by George A. Malcolm
Railroad Service to A . B. A .
Frank M. Covert
A Special B ankers Section of th e
T w entieth C entury L im ited is a n
nounced by the N ew Y ork C entral
R ailroad for delegates to the sixtyseventh an n u al convention of th e
A m erican B ankers A ssociation a t Chi-
Fred D. Cummings
w h o w i ll a p p r e c ia t e th e o p p o r t u n i t y of m e e tin g y o u th ere
t h e d r o v e r s n a t io n a l ba n k of c h ic a bo
will be represented at the forthcoming
ANNUAL CONVENTION
F R E D E R I C K N.
of the
MERCER
V ice-Presid en t
AMERICAN BANKERS ASSOCIATION
G E O R G E A.
MALCOLM
V ice-Presid en t
By Its Entire Official Stall
and Cashier
DALE E.
C HA M BE RL IN
V ice-President
F R A N K M.
CO VE R T
A ssistant
■■■
DltOVEIlS NATIONAL HANK
li 110V FltS TitIIST & SAVINGS IIANI4
MEMBERS,
FEDERAL
DEPOSIT
Northwestern Banker September 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
INSURANCE
CORPORATION
Cashier
29
cago, Septem ber 29th to October 2nd.
T he Special B ankers Section w ill op
erate tw o days: S aturday, Septem ber
27th, leaving New Y ork City a t 5:00
p. m., E a ste rn S tan d ard Time, a rriv
ing at Chicago a t 8:00 a. m. C entral
S tan d ard Tim e th e follow ing m orning;
and on Sunday, Septem ber 28th, leav
ing N ew Y ork at 6:00 p. m., E a ste rn
S tan d ard Tim e, a rriv in g at Chicago a t
9:00 a. m., C entral S tan d ard Time,
M onday m orning.
B oth th e New Y ork C entral and
th e P en n sy lv an ia R ailroads offer fre
q u en t service on th e ir stan d ard train s.
T he New Je rse y B ankers Associa
tion is em phasizing “The G eneral” on
th e P en n sylvania R ailroad leaving
New York at 3:40 p. m., E a ste rn Stand
ard Time, S aturday, Septem ber 27th;
N ew ark at 3:55 p. m.; and Philadelphia
a t 5:07 p, m., a rriv in g in Chicago a t
7:40 a. m., C entral S tandard Time.
T his is a daily tra in and m ay be taken
on Sunday also and get th e delegate
to Chicago in am ple tim e for th e open
ing of th e convention M onday m o rn
ing.
The P en n sy lv an ia’s equivalent of
th e T w en tieth C entury is th e Broad
w ay L im ited leaving N ew Y ork a t
5:00 p. m., E a ste rn S tandard Time;
N ew ark a t 5:14 p. m.; and Philadelphia
at 6:19 p. m., a rriv in g in Chicago at
8:00 a. m., C entral S tandard Time.
Special air conditioned cars are a n
nounced for New E ngland ban k ers
leaving Boston on Saturday, Septem
ber 27th at 2:15 p. m., E a ste rn S tand
ard Time; W orcester at 3:21 p. m.;
Springfield at 4:32 p. m.; and Pittsfield
a t 5:56 p. m., a rriv in g in Chicago a t
8:30 a. m., C entral S tandard Time,
Sunday, Septem ber 28th.
T here w ill be a Kansas-Oklahom a
Special Santa Fe S tream liner leav
ing O klahom a City on Saturday, Sep
tem ber 27th at 6:45 a. m.; T ulsa at
Chicago Commitee Chairman
for the
A . B. A . Convention
P H I L I P R. C L A R K E
P r e s id e n t, C ity N a tio n a l B an k & T ru st C om pan y
G eneral C hairm an
V ic e
F R E D A. C U S C A D E N
P r e s id e n t, N o rth ern T r u s t C om pan y
E x e c u tiv e C hairm an
V ic e
J O H N J. A N T O N
P r e s id e n t, F ir s t N a tio n a l
F in a n c e C hairm an
B ank
K E N T C. C H I L D S
V ic e P r esid en t
C o n tin e n ta l I llin o is N a tio n a l B an k
C hairm an, In fo r m a tio n and P u b lic it y
Northwestern Banker September 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
30
8:40 a. m.; Dodge City a t 6:30 a. m.;
W ichita at 9:50 a. m.; Topeka a t 12:33
p. m.; K ansas City a t 2:00 p. m.; stop
ping at a n u m b er of o th er points en
ro u te and a rriv in g in Chicago a t 9:30
p. m. th a t night.
w ho is vice presid en t of th e F irs t N a
tional Bank, Chicago, Illinois.
L etters w ill be sen t to banks in the
conference area about th e th ird w eek
in Septem ber, in v itin g them to send
rep resen tativ es of th e ir real estate
m ortgage d ep artm en ts to th e m eet
ing. In all, th ere are 1,395 banks in
th e area.
The sessions w ill be held u n d er the
direction of Dr. E rn e st M. F isher, di
recto r of th e A. B. A.’s D epartm ent of
R esearch in M ortgage and Real E state
Finance. T hey w ill be conducted on
an open forum basis, an d ban k ers in
atten dance w ill be free to interpose
questions and express th e ir opinions
Union Stock Yards. The latchstring is out.
du rin g th e discussions.
This tech
nique follows a conference p a tte rn
established last D ecem ber a t th e first
A. B. A. Real E state M ortgage Clinic,
held by th e A ssociation in Cleveland,
Ohio, w hich m et w ith outstanding suc
cess.
The B ellevue-Stratford H otel in P h il
adelphia w ill be conference head
q u arters. A com m ittee in charge of
arran g em en ts for th e conference has
been nam ed, w hich consists of th e
follow ing bankers:
F ra n k G. Sayre, vice president, The
P en n sylvania Com pany for Insurances
on Lives and G ranting A nnuities, P h il
adelphia, chairm an.
B. B rooke B arrett, secretary, Norristow n-P enn T ru st Company, N orris
tow n, Pennsylvania.
E. M. Green, Jr., assistan t tru s t offi
cer, D auphin D eposit T ru st Company,
H arrisb u rg , P ennsylvania.
Sam uel F. Rackafellow , real estate
officer, E aston T ru st Company, E aston,
P ennsylvania.
M atthew F. Judge, vice president,
E quitable T ru st Company, W ilm ing
ton, D elaware.
S. Page Nelson, vice president, Sav
ings B ank of B altim ore, Baltim ore,
M aryland.
F ra n k E. H em elright, a ssistan t vice
president, F irst N ational B ank of
Scranton, Pennsylvania.
R obert L. Ellison, a ssistan t secre
tary, W est B ranch B ank & T ru st Com
pany, W illiam sport, Pennsylvania.
E rn e st A. Lord, real estate officer,
G uarantee B ank & T ru st Company,
A tlantic City, New Jersey.
Isaac W. R oberts, vice president,
P hiladelphia Saving F u n d Society,
P hiladelphia, P ennsylvania.
C. F. E llery, vice president, F idelity
U nion T ru st Company, N ew ark, New
Jersey.
W illiam L. Beale, vice president,
A m erican Security & T ru st Company,
W ashington, D. C.
H erb ert O. F rey, vice president, The
P ennsylvania Com pany for Insurances
on Lives and G ranting A nnuities, P h il
adelphia, P ennsylvania.
Jo h n J. Roe, vice presid en t and
treasu rer, H udson City Savings Bank,
Jersey City, New Jersey.
LIVE STOCK
N A T . O N A L BANK OF C H I C A G O
Rub: “S h arp ’s baby is only 18
m onths old and can ta lk .”
Dub: “Well, th a t is to be expected.
The bab y ’s fa th e r is an insurance
agent and its m o th er is a club
w om an.”
Mortgage Clinic
A Real E sta te M ortgage Clinic spon
sored by th e Savings D ivision of th e
A m erican B an k ers A ssociation for
banks in D elaw are, th e D istrict of
Columbia, M aryland, N ew Jersey, and
easte rn P en n sy lv an ia w ill be held in
P hiladelphia, P ennsylvania, October
30th-31st, it is announced by Roy R.
M arquardt, p resid en t of th e division,
W « icome
to ( ft ¡caao
Seven years after this bank was
founded in 1868, the American
Bankers Association was organ
ized. Since then, the Association
has met six times in Chicago.
We hope that every reader of
this advertisement can attend this ye a r’s
convention in Chicago, September 28 to
October 2. To all who come we extend
a hearty invitation to call at our bank
ing quarters at the entrance to the
Established 1868
UNI ON STOCK YARDS
M e m b e r F e d e r a l D e p o s it In su ra n c e C o rp o ra tio n
Northwestern Banker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M echanic: “T h ere’s a fellow going
dow n in a p arach u te.”
A viator: “I ’ll see if I can h it him.
It isn ’t often we get a chance a t a
ped estrian .”
31
For Your Entertainment
(ft flvCügO
Chicago Banks and Bankers Providing a Glorious Good Time for the
Nation's Bankers and Their W ives Attending the A . B. A . Convention
HICAGO b an k s and b an k ers cor
dially inv ite th e ir co rrespond
en ts an d o th er b an k er friends
to a tte n d th e an n u al convention of th e
A m erican B an k ers A ssociation w hich
w ill be held in th e ir city Septem ber 28
to October 2. E n te rta in m e n t a rra n g e
m ents, p lans for w hich are now com
plete, prom ise convention v isito rs a
m ost enjoyable tim e.
The festivities s ta rt at four o’clock
Sunday afternoon, th e 28th, w h en from
th e n u n til six o’clock a reception w ill
be held in th e G rand Ball Room of the
Stevens H otel for all b an k ers and th e ir
guests. A n o th er reception h o u r has
been arran g ed by Chicago b anks on
W ednesday, October 1, w h en all dele
gates and th e ir ladies w ill again visit
th e G rand Ball Room of th e Stevens
from 5:30 p. m. to 6:30 p. m.
T he ladies w ill be royally e n te r
tained, of course. On M onday, S eptem
b er 29, for a lim ited n u m b er of ladies
atte n d in g th e C onvention a to u r
th ro u g h th e p la n t of th e K raft Cheese
Com pany has been arranged, and th is
sam e trip w ill be rep eated on W ednes
day. The to u r for both days w ill s ta rt
a t 1:30 p. m. Since th e n u m b er th a t
can be accom m odated on th is to u r is
lim ited to how m an y th e K raft Com
p any can conveniently conduct, it w ill
be a case of first come first served.
On T uesday, S eptem ber 30, th e ladies
w ill a tte n d a luncheon a t th e South
Shore C ountry Club, w hich includes a
nine-m ile to u r along th e south shore
of Lake M ichigan.
On T hursday, O ctober 2, a tea has
been arran g ed for th e ladies a t th e
E d g ew ater Beach H otel d u rin g th e
afternoon, an d here th e v isito rs w ill
have an o p p o rtu n ity to tak e an eightm ile drive along th e n o rth shore of
th e lake.
E n te rta in m e n t to be enjoyed by both
m en and w om en is really outstanding.
On T uesday evening, Septem ber 30, an
all-star stage show has been arran g ed
and w ill be held in O rchestra Hall, one
of Chicago’s fine air-conditioned th e a
tre s hav in g p erfect acoustics. T h u rs
day evening, October 2, th e an n u al in
au g u ra l cerem ony w ill be held in Or
ch estra Hall. I t w ill s ta rt w ith an
organ recital, to be follow ed by th e
n atio n ally know n Sw edish C horus of
Chicago, and th e n th e po p u lar and
C
celebrated M etropolitan Opera tenor,
G iovanni M artinelli, w ill en tertain .
T he G rand Ball, th e closing function
of th e C onvention, w ill be held in th e
G rand Ball Room of th e Stevens H otel
a fte r th e in au g u ral cerem ony and Or
ch estra H all en tertain m en t.
Ample o p p o rtu n ity for golf w ill be
provided for b an k ers atten d in g th e
C onvention of th e A m erican B ankers
A ssociation in Chicago, according to
th e Chicago Convention Golf Com m it
tee of w hich R ichard A. A ishton, vice
p resid en t of th e C ontinental Illinois
B ank and T ru st Company, is chairm an.
Mr. A ishton announces th a t the p riv
ileges of th e Olympia Fields C ountry
Club w ill be extended to the delegates
th ro u g h o u t the C onvention. The club
is said to have the m ost extensive
golfing facilities in th e Chicago area.
It contains 12,000 lockers, five dining
room s and a cafeteria. Its N um ber
One Course has been reserved for the
b an kers and its N um ber Two Course
has been assigned to th e ir ladies.
T he ann u al A.B.A. to u rn am en t w ill
be continued th ro u g h th e four days of
th e C onvention, concluding T hursday
afternoon, October 2, perm ittin g p a r
ticipants to play at the tim e m ost con
v en ien t for them . Cards of in tro d u c
tion w ill be issued by th e Golf Com
m ittee at its booth in the Stevens
Hotel. A pam phlet giving detailed in
stru ctio n s w ill be issued to all dele
gates upon registration.
W hen registering, th e delegates w ill
receive th e usual kit w hich w ill con
tain a coupon booklet and the coupons
can be exchanged for tickets to the v a
rious functions at desks w hich w ill be
provided for th a t purpose.
In addition to the above, coupons
will be included w hich can be ex
changed for tickets w hich w ill adm it
th e delegates to places of in te re st in
Chicago, such as th e F ield M useum,
A rt In stitu te, P lanetarium , Board of
Trade, and th e B oard of T rade Tow er
for a view of the city.
The com m ittee has m ade every ef
fort to arran g e th e program so th a t
all atten d in g th e C onvention w ill be
kept busy, b u t on the o ther h and th ey
w ill have sufficient tim e for visiting
th e stores, places w hich m ight be of
in te re st to them , relatives and friends
residing here in Chicago.
The Chicago banks welcome the op-
M ichigan A venue, Chicago, looking north, w ith the H otel Stevens, A. B. A.
C onvention headquarters, in the le ft foreground.
Northwestern Banker Septem ber 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
32
p o rtu n ity to be hosts to th is Conven
tion and are doing e v ery th in g to m ake
th e stay of th e delegates as p leasan t as
possible, reg ard less of th e resp o n si
bilities confronting th e b an k ers in
these try in g tim es.
The follow ing is a com plete list
of Chicago b an k ers and th e ir w ives
w hich m ake up th e p ersonnel of th e
several com m ittees:
G EN ER A L
C hairm an, P h ilip R. Clarke, City
N ational B ank & T ru s t Co.; E d w ard
E. Brow n, F irs t N ational Bank; W alter
J. Cum m ings, C ontinental 111. N ational
Bank; W illiam C. Cum m ings, D rovers
N ational Bank; C harles G. Dawes, City
N ational B ank & T ru st Co.; H ow ard
W. F enton, H a rris T ru st & Savings
Bank; A lbert W. H arris, H a rris T ru st
& Savings Bank; Jam es R. Leavell,
C ontinental 111. N ational Bank; B ent
ley G. McCloud, F irs t N ational Bank;
D avid H. Reim ers, Live Stock N ational
Bank; Solomon A. Sm ith, N o rth ern •
T ru st Company; L aw rence F. Stern,
A m erican N ational Bank; George J.
Schaller, F ederal R eserve Bank.
EX EC U TIV E
C hairm an, F red A. Cuscaden, N o rth
ern T ru st Company; Jo h n S. Broeksm it, H a rris T rust & Savings Bank;
R euben G. D anielson, C ontinental 111.
N ational Bank; Jo h n F. Hagey, F irst
N ational Bank; W illiam H. Miller, City
N ational B ank & T ru st Co.; E dw in D.
V an H orne, A m erican N ational B ank
& T ru st Company.
A WEALTH OF EXPERIENCE
FOR CORRESPONDENTS TO DRAW ON
D uring its more than half a century
Thus, in addition to the mechanics of
o f continued existence, The N orthern
normal, routine transactions, the corre
Trust Company has acquired facts, fig
spondent who forms a connection here
ures, and experience. It has long been
may broaden his usefulness to his cus
the policy of this institution to make
tomers and to his community. Your
this essential information readily and
inquiry concerning the advantages of
easily available to its correspondents.
a connection with this bank is invited.
THE NORTHERN
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 19F1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
*
FIN A N CE
C hairm an, Jo h n J. Anton, F irs t N a
tional Bank; Carl A. B irdsall, Conti
nen tal 111. N ational Bank; H ow ard M.
Sims, Chicago Clearing House; H a rry
E. W eese, H arris T ru st & Savings
Bank.
INFORM ATION AND PU BLICITY
C hairm an, K ent C. Childs, C ontinen
tal 111. N ational Bank; Guy W. Cooke,
F irs t N ational Bank; J. Mills E aston,
N o rth ern T ru st Company; H a rry C.
H ausm an, Illinois B ankers Associa
tion; C hester L. Price, City N ational
Bank; J. R ussell W ard, H a rris T ru st
& Savings Bank; A. S. Bagnall, Live
Stock N ational Bank.
REC EPTIO N
C hairm an, W alter B. Allen, Conti
n ental Illinois N ational Bank; George
R. Boyles, M erchants N ational Bank;
K. K. Du Vail, City N ational Bank; R.
K enneth N ew hall, F irs t N ational
Bank; R andolph G. Owsley, H arris
T ru st & Savings Bank; H ow ard P.
P reston, F ederal R eserve Bank; F ra n k
C. R athje, Chicago City Bank; C harles
B. W eaver, N o rth ern T ru st Company;
Jo h n C. W right, A m erican N ational
Bank.
TRANSPORTATION
C hairm an, Thom as J. N ugent, F irst
N ational Bank; W illiam W. F arrell,
M ercantile N ational Bank; L. W.
Fischer, A m erican N ational Bank; Jo
seph F. Go van, City N ational Bank;
P aul C. M artin, H arris T ru st & Sav
ings Bank; H a rry M. McLeod, N o rth
e rn T ru st Company; F re d M. N aber,
C ontinental Illinois N ational Bank.
HOTELS
C hairm an, E dw in N. V an H orne,
A m erican N ational Bank; Jo h n J. A n
ton, F irs t N ational Bank; H arold B.
Bray, H a rris T ru st & Savings Bank;
F ra n k R. Curda, City N ational Bank;
Jo h n W. Nichols, C ontinental Illinois
N ational Bank; Royden K. P retty ,
N o rth ern T ru st Company.
HALLS, M EETIN G PLACES AND
EDUCATIONAL DISPLAYS
C hairm an, C harles M. Nelson, N o rth
ern T ru st Company; E d w ard A.
B erndt, A m erican N ational Bank; E l
ton W. F ollett, H arris T ru st & Sav
ings Bank; Spencer L. H art, Conti
n en tal Illinois N ational Bank; B entley
G. McCloud, Jr., F irs t N ational Bank;
George A. Malcolm, D rovers N ational
Bank; Leslie McMahon, City N ational
Bank & T ru st Co.
R EG ISTRA TIO N
C hairm an, H a rry A. B rinkm an, H ar
ris T ru st & Savings Bank; L. K enneth
Billings, City N ational Bank; O. Paul
Decker, A m erican N ational Bank; H ar
old E ck h art, H a rris T ru st & Savings
Bank; Clarence B. Jen n ett, F irs t Na-
33
tional Bank; R onald M. K im ball, Con
tin e n ta l Illinois N ational Bank; A lan
R. Kidd, N o rth e rn T ru st Company;
Lew is L. M cA rthur, N o rth e rn T ru st
Com pany; N orm an B. Shaffer, Conti
nen tal Illinois N ational Bank; E m il A.
Stake, F irs t N ational Bank; Clifford S.
Young, F ed eral R eserve Bank.
ARRA N G EM EN TS
C hairm an, C. E d g ar Johnson, F irs t
N ational Bank; N orm an L. Feltes, H a r
ris T ru s t & Savings Bank; M. A.
Georgen, City N ational B ank & T ru st
Co.; Jo h n J. Klug, A m erican N ational
Bank; Jos. T. L eim ert, C ontinental Il
linois N ational Bank; A rlen J. W ilson,
N o rth e rn T ru s t Company.
E N T E R T A IN M E N T
C hairm an, W illiam H. M iller, City
N ational B ank & T ru s t Co.; L aurance
A rm our, LaSalle N ational Bank; L es
te r T. Boe, C ontinental Illinois N a
tio n al Bank; C harles A. Carey, H a rris
T ru s t & Savings Bank; Jo h n H. G rier,
F irs t N ational B ank; L aw rence A.
Kem pf, N o rth e rn T ru s t Company;
C harles C. K uning, A m erican N ational
Bank.
GOLF
C hairm an, R ichard A. A ishton, Con
tin e n ta l Illinois N ational B ank; Adolph
R. F loreen, City N ational Bank; A.
M acpherson, B ank of M ontreal; R ich
a rd E. P ritc h a rd , H a rris T ru st & Sav
ings Bank; E d w ard B. Sm ith, N o rth
e rn T ru s t Company; R obert E. Straus,
A m erican N ational Bank; M elvin H.
T hies, F irs t N ational Bank.
LA D IES
C hairm an, Mrs. Jam es R. Leavell;
Mrs. E d w ard E. B row n; Mrs. W alter
J. Cum m ings; Mrs. A lb ert W. H arris;
Mrs. C harles G. Dawes; Mrs. Solomon
A. Sm ith; Mrs. H ow ard W. F enton;
Mrs. P hilip R. Clarke; Mrs. B entley
G. McCloud; Mrs. D avid H. R eim ers;
Mrs. L aw rence F. Stern; Mrs. George
J. Schaller; Mrs. H arold V. Am berg;
Mrs. F re d A. Cuscaden; Mrs. H a rry A.
B rinkm an; Mrs. R euben G. Danielson;
Mrs. Jo h n F. Hagey; Mrs. Jo h n S.
B roeksm it; Mrs. E dw in D. V an H orne;
Mrs. W illiam H. M iller; Mrs. C. E d g ar
Johnson; Mrs. Jo h n J. A nton; Mrs.
C harles M. Nelson; Mrs. R ichard A.
A ishton; Mrs. W alter B. Allen; Mrs.
Thom as J. N ugent.
W here the Farmer Stands
F re d S. Sexauer, p resid en t of th e
D airy m en ’s League C ooperative A sso
ciation of N ew York, recen tly m ade
th is sam e observation on th e a g ri
c u ltu ra l price problem : “P rices m u st
now be fixed to give p ro p er and re a l
istic recognition to costs. In view
of in creased com m odity prices, in
creased cost of producing m ilk and
h ig h e r consum er p u rch asin g pow er,
it is now necessary to establish sound
price relationships in th e in te re st of
th e preserv atio n of a g ricu ltu ral assets
and to su p p o rt th e n ational credit
stru c tu re .”
T he farm er isn ’t m aking u n reaso n
able dem ands. A ccording to official
governm ent reports, th e purchasing
pow er of factory w o rkers is now a t
record levels, and th e incom es of these
w o rkers have increased m uch m ore
th a n th e cost of living. T he farm er,
on th e o th er hand, is g etting little
m ore for w h a t he sells—y et m u st pay
g reatly increased w ages to his help,
and m u st pay soaring prices for every
th in g he buys.
T his situ atio n cannot go on for long
COMMERCIAL
•
CHECKING
if m illions of farm fam ilies are to be
saved from disaster. The farm er m u st
have and is entitled to a re tu rn th a t
w ill m eet his abnorm al costs of pro
duction.
Bond Purchase Plan
The City N ational B ank and T ru st
Com pany of Chicago has announced
th e adoption of a plan to fu rth e r co
operate w ith th e governm ent in th e
sale of D efense savings bonds.
T he b an k has a rran g ed a program
w hereby its officers and em ployes m ay
purchase th e Defense savings bonds
on a p a rtia l p aym ent basis th ro u g h
m onthly salary deductions.
f
S A V I N G S
•
T R U S T S
(Q u alified in every way
to serve as your
Chicago correspondent
1Visitors are alw ays welcome and a
special invitation is'extended to bankers
attending the A .B .A . Convention.
A M E R IC A N N A T IO N A L BANK
A N D TRUST C O M P A N Y
o
LA SALLE S T RE E T AT W A S H I N G T O N
M em b e r F e d e ra l D e p o s it I n s u ra n c e C o rp o ra tio n
Northwestern Banker Septem ber 19kP
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Chicago
Committee Chairman
for the
A . B . A . Convention
W A L T E R B. A L L E N
V ic e P r e s id e n t
C o n tin e n ta l I llin o is N a tio n a l
R e c e p tio n C hairm an
V ic e
T H O M A S B. N U G E N T
V ic e P r e sid e n t
F ir s t N a tio n a l B ank
T ra n sp o r ta tio n C hairm an
B an k
H A R R Y A . B R IN K M A N
P r e s id e n t, H a r ris T ru st & S a v in g s
R e g is tr a tio n C hairm an
E D W IN N. V A N H O R N E
E x e c u t iv e V ic e P r e s id e n t
A m eric a n N a tio n a l B ank
H o te ls C hairm an
B an k
W I L L IA M H . M I L L E R
V ic e P r e s id e n t, C ity N a tio n a l B an k & T r u st Co.
C hairm an , E n te r ta in m e n t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C H A RLES M. N ELSO N
V ic e P r e s id e n t, N o rth ern T r u st C om pan y
C hairm an , M e e tin g P la c e s and D is p la y s
C. E D G A R J O H N S O N
A s s is ta n t V ic e P r e s id e n t
F ir s t N a tio n a l B ank
C hairm an A rra n g em en ts
R IC H A R D A. A I S H T O N
V ic e P r e s id e n t, C o n tin e n ta l I llin o is N a tio n a l
G o lf C hairm an
35
State Supervisors
To Meet in St. Paul
Jo h n D. H ospelhorn, p resid en t of
th e N ational A ssociation of S uper
visors of S tate B anks, has announced
th a t G overnor H arold E. Stassen of
M innesota, Leo T. Crowley, ch airm an
of th e F ed eral D eposit In su ran ce Cor
poration, an d R onald Ransom , vice
ch airm an of th e board of governers
of th e F ed eral R eserve System , w ill
addess th e fo rtie th an n u al convention
of th e A ssociation w hich w ill be held
at th e H otel St. P au l in St. Paul,
Septem ber 24th-27th.
B ank com m issioners from n early all
states in th e U nion w ill attend, as
w ill m any of th e executive officers of
th e office of th e C om ptroller of th e
C urrency, th e F ed eral R eserve B anks,
th e B oard of G overnors of th e F ed eral
R eserve System , th e F ed eral D eposit
In su ran ce C orporation, th e Recon
stru c tio n F in an ce C orporation, th e
A m erican B an k ers A ssociation, and
o th er organizations. F. A. A m undson,
b an k com m issioner of M innesota, is in
charge of local arran g em en ts.
Am ong th e o th er sp eakers already
scheduled to ap p ear on th e p rogram
are W illiam R. W hite, New Y ork
State S u p erin ten d en t of Banks; Jo
seph E a rl P erry , B ank C om m issioner
of M assachusetts; G urney P. Hood,
B ank C om m issioner of N o rth Carolina;
E d w ard A. W ayne, secretary of th e
N o rth C arolina B ankers Association;
L eonard C. Sm ith, D eputy D irector of
B anking, K entucky; R ulon F. Starley,
B ank Com m issioner of U tah; Louis A.
Reilly, Com m issioner of B anking and
Insu ran ce, N ew Jersey; and Jo h n C.
Bell, S ecretary of B anking, P en n sy l
vania.
The convention w ill open on W ed
nesday, S eptem ber 24th, w ith th e
m o rn in g being devoted to reg istratio n .
B usiness session w ill be held W ednes
day afternoon, T hursday, F rid ay , and
S atu rd ay m ornings. The a n n u al b an
quet w ill be held S atu rd ay evening.
G overnor S tassen w ill be th e pricinpal
speaker. Mr. H ospelhorn, as p resi
dent, w ill preside d u rin g th e conven
tion. An extensive program of en
te rta in m e n t has been a rra n g e d by
a local com m ittee headed by Commis
sioner A m undson.
Am ong th e subjects listed for dis
cussion d u rin g th e m eeting are In
flation, D efense F inancing; C onsum er
Credit; B ank E xam inations; Real E s
ta te P roblem s of B anks; M unicipal
Securities; C ooperation B etw een B ank
Officers and E x am iners; T he Coordi
n atio n of S tate S upervisory R esponsi
bilities w ith Those of th e F ederal
B ureaus; T axation and Its R elation
ship to th e F u tu re of Our B anking
S tru ctu re; and Capital F u n d s of Bank-
ing Institu tio n s. I t is expected th a t
th e com pleted program w ill be a n
nounced in about ten days.
The N ational A ssociation of S uper
v i s o r s of S tate B anks includes in its
m em bership th e b ank com m issioners
of th e 48 states and of th e T e rrito ry
of H awaii.
The A ssociation w as
founded in D etroit, Ju ly 28-29, 1902.
S. T. Johnson, public exam iner of
M innesota, w as elected th e first p resi
dent. T he p resen t officers are:
P resident, Jo h n D. H ospelhorn,
D eputy B ank C om m issioner of M ary
land; first vice president, Rulon F.
S tarley, B ank Com m issioner of U tah;
second vice president, Rodney P. Lien,
S u p erin ten d en t of B anks, Ohio; th ird
vice president, Joseph E a rl P erry,
Com m issioner of Banks, M assachu
setts; secretary -treasu rer em eritus, R.
N. Sims, of Louisiana; secretary.
Irv in g A. J. Law res, confidential as
sistan t to th e New Y ork S u p erintend
en t of Banks; treasu rer, Clyde M.
Davis, B ank Com m issioner, New
H am pshire; ch airm an of th e executive
com m ittee, W illiam R. W hite, Super
in ten d en t of Banks, New York; vice
chairm an, Jo h n C. Bell, Secretary of
B anking, P ennsylvania; secretary of
th e executive com m ittee, J. D. Bloom,
Special D eputy S ecretary of B anking,
Pennsylvania.
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Investm ent Service
T h e e x p e rie n c e o f sev en ty -sev en years
a n d im m e d ia te c o n ta c t w ith p rin c ip a l
cities m a k e th e services o f o u r B o n d
D e p a r tm e n t o f p a r tic u la r v a lu e to
c o rre s p o n d e n t banks*
In q u irie s b y te le p h o n e , w ire, o r m ail
are in v ite d , a n d q u o ta tio n sheets w ill
be m a ile d o n request*
T e le p h o n e F r a n k lin 6 8 0 0 —L D 9 2 -9 3
T e le ty p e C G O 9 8 7
B O N D DEPARTM ENT
The First N a t io n a l B a n k
o f C h ic a g o
Northwestern Banker Septem ber 19M
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Federal Reserve Bank of St. Louis
36
Reaches New Top
Mr. and Mrs. A m erican Public d u r
ing June, 1941, h ad th e h ig h est “real
incom e” in th e ir lives. As a re su lt
of th e ir expanding “real incom e,”
w hich d u rin g Ju n e, 1941, w as $1.33
ag ain st $1 in June, 1940, th e P ublics
w ere able to b u y m ore goods and serv
ices, despite risin g living costs, th a n
th ey w ere a y e a r ago, according to
a m o n th ly stu d y of w h a t people get
and spend, m ade public by In v esto rs
Syndicate, M inneapolis.
“E xpen d in g ‘real incom e,’ or th e
buy in g pow er of th e average A m eri
can fam ily,” explained In v esto rs S yn
d icate’s m o n th ly stu d y of th e n a tio n ’s
p u rch asing pow er, “is probably th e
stro n g est single force influencing th e
price situation today.
“T his p ressu re upon th e supply of
goods, coupled w ith th e lim itations
im posed upon supply sources by de
fense needs, n atu ra lly fosters th e
price increases being fought by bu si
ness associations and th e Office of
P rice A d m inistration and Civilian
Supply.
“Inform al g overnm ent action and
v o lu n tary cooperation have been ef
fective in checking price advances.
T h at is evidenced by com paring c u r
re n t prices of consum er goods w ith
those prevailing a y ear ago. T here
have been increases, b u t so far th ey
have not been drastic. W here a fam
ily sp en t a dollar for food last y e a r
th ey spent only $1.05 d uring June,
1941. The cost of housing (rents) is
now tw o cents h igher on th e dollar
th a n a y ear ago. Clothing, how ever,
is only a cent m ore on th e dollar
th a n in June, 1940. M iscellaneous
item s, how ever, are eight cents on
the dollar above Ju n e a y ear ago.
“Cash income, from all sources, d u r
ing Ju n e w as flowing to consum ers
at th e ra te of $1.38 to m atch ev ery
dollar going to th em in th e preceding:
June. C ontrast th is w ith the price
increase th a t so far only m ake it nec
essary for th e consum er to spend $1.04
to get w h at th e June, 1940, d o llar
w ould buy, and it is easy to see th e
reflection of th e defense program in
consum er trad e channels.”
Private Credit
H ow well are th e banks serving'
this country? A recen tly com pleted
study of th e experience of 6,100 com
m ercial banks last y ea r—43 per cent
of th e 14,000 banks of th a t type in
business in th is co u n try —provides the
answ er.
These banks m ade 27,000,000 credit
transactions, involving th e staggering
sum of $42,200,000,000. New loans ac
counted for $25,000,000,000 of th e total,
and renew als accounted for $16,000,000,000 m ore. M ortgage loans re p re
sented close to $1,000,000,000.
T h irteen h u n d red of these banks
also rep o rted th a t th ey w ere m ain tain
ing open lines of credit for established
borrow ers, totaling m ore th a n $6,000,000,000. On Decem ber 31, only $2,200,000,000 of this w as being used—a fact
w hich indicates th a t th e banks are
prep ared to give far g re a te r credit
service th a n is now needed.
The banks, then, are really doing
an A-l credit job for A m erican busi
nesses an d individuals. A v ery large
p ro p o rtio n of th e loans m ade go to
sm all businesses, and th e typical bank
is v ery m uch in terested in im proving
its service in th a t field. The m an w ith
a legitim ate need for m oney doesn’t
have to search far today—th e nearest,
ban k w ill give him a cordial welcome.
Reserve Vice President
F ra n k J. Lewis, ch airm an of theF ederal R eserve B ank of Chicago, has
announced th e election of A. J. Mulroney as vice presid en t of the F ed
eral R serve B ank of Chicago to tak e
effect on or about Septem ber 1st.
Mr. M ulroney w as appointed Sec
ond D eputy C om ptroller of the Cur
rency on Ju ly 6th of th is year. H e
has been in th e C om ptroller’s office
since th e b an k holiday w hen he w as
called to W ashington to serve in theNorthwestern Banker Septem ber 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
37
new ly form ed R eorganization D ivision
of th a t office. He w as in charge of re
organizing all natio n al b an k s in th e
S eventh and N in th F ed eral R eserve
D istricts. L ater, in th e capacity of
a ssista n t chief natio n al b an k exam i
ner, he w as placed in charge of th e
p re fe rred stock division, and w as re
sponsible for th e details incident to
have forced husbands and w ives w ith
sep arate incom es to lum p th e ir e a rn
ings in a single re tu rn , and so pay a
h ig h er to tal ta x th a n w ould otherw ise
have been levied. T his provision w as
m anifestly u n ju st and, in effect,
am ounted to placing a definite eco
nom ic p en alty upon th e in stitu tio n of
m arriage.
P rim e w eakness of th e H ouse Bill,
in th e view of m ost econom ists, lies
in th e failure to place an equitable
ta x upon those in th e low er incom e
b rackets w ho w ill receive th e b ulk of
th e w ages resu ltin g from defense
spending.
P resid en t R osevelt re
quested th a t exem ptions be reduced,
cm
b u t his advice w as rejected. • So it
is up to th e Senate to correct th is de
fect. T he gigantic cost of defense
can only be m et if all incom e stra ta
co n trib u te th e ir fair share F u rth e r
m ore, if we are to p rev en t ru n aw ay
price inflation, a curb m u st be placed
on consum er p u rchasing pow er, and
th e only w ay to do th a t is to directly
tax those groups w hich are reaping
th e rich est h arv est from th e “w ar
boom.”
As th e P resid en t also pointed out,
th e sections of th e bill dealing w ith
excess profits and corporation taxes,
need revision. A t present, certain
classes of business are heavily penal-
m —
a / ie
to visit Chicago’s newest and most modernly styled bank
during the convention
of the American Bankers Association
September 28-O ctober 2
A. J. MULRONEY
O ur officers and directors will consider it a privilege to
th e issuance by natio n al b an k s of m ore
th a n one-half billion dollars of p re
ferred stock.
He began his b an k in g career as a
b an k exam iner for th e state of Iowa.
In 1928 he received his com m ission
as a natio n al b an k exam in er and w as
assigned to a d istrict w hich included
p a rts of M ichigan an d Indiana. He
la te r accepted a position as tr u s t offi
cer of a Chicago b an k and rem ained
th e re u n til he w as m ade an officer
in th e cred it d ep artm en t of one of Chi
cago’s large banks.
Mr. M ulroney w as b o rn in M allard,
Iowa, A ugust 14, 1897. He w as em
ployed in a co u n try b an k tw o y ears
before en te rin g college. He enrolled
in th e U n iv ersity of Iow a in J a n u
ary, 1919.
A fter com pleting tw o
y ears in liberal a rts college, he re
tu rn e d to b an k in g for a y e a r before
he en tered th e law college of th e
U n iv ersity of Iow a, from w hich he
received his LL.B. in 1924. The sam e
y e a r he w as ad m itted to th e Iow a bar.
The New Tax Bill
The new ta x bill, w hich w as passed
by th e H ouse an d is now in th e Sen
ate, has m any m erits. B ut it likew ise
has defects w hich should be rem edied
before final enactm ent.
The H ouse is to be com plim ented
on rem oving the clause w hich w ould
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Federal Reserve Bank of St. Louis
welcome you and to show you our facilities
for m odern banking
DIRECTORS
LAURANCE ARMOUR
Chairman of the Board
D ir e c t o r , A rm o u r
JOHN V. FARWELL, III
President,
Sanitary Scale Co.
WADE FETZER
President,
&Co.
JOHN R. NICHOLSON
Nicholson, Snyder,
Chadwell &Fagerburg
GEORGE W. OVERTON
President
W. A. Alexander &Co.
GEORGE W. GRIFFITHS
Reuben H. Donnelley
Corp.
Vice President
C. RAY PHILLIPS
President
GEORGE E. ROSE
Vice President
International Harvester
Co.
CARL J. WEITZEL
Estate of Marshall Field
John Griffiths &Son
Construction Co.
ILA SAMLILIE NAÏIIONAIL B A N IK,
135 South L a Salle Street
C hicago, I llinois
(CLARK“W ^
LOCATED IN THE HEART OF \|™!!IPL
^ s„y lÍfb CHICAGO'S FINANCIAL DISTRICT
MEMBER OF THE FEDERAL D EPO SIT
IN S U R A N C E CO R PO R A T IO N
Northwestern Banker Septem ber 19hl
38
ized, w hile o th er classes, by com pari
son, are u n d u ly favored. M any fear
th a t the bill places alm ost ru in o u s
tax b urdens on some in d u stries w hose
survival and progress is v ital to th e
national w elfare.
The Senate has a big job on its
hands. T he fu tu re secu rity an d pro s
p erity of th is co u n try w ill depend to
a large ex ten t on how w ell th a t job
is accom plished.
A BANK D IR EC TO R TA LKS
A B O U T HIS JO B
(C ontinued from page 13)
T he directo r should assist in d e te r
m ining th e financial policies of his
bank as w ell as advising w h e th e r or
not to engage m arried w om en w hose
husbands are gainfully employed. The
question of h irin g w om en in b ank posi
tions, w h ere th e y come into direct
contact w ith the public, is also a m a t
ter to be carefully considered. Some
directors th in k th a t such m a tte rs are
social problem s, and such th e y are, b u t
we as d irectors should feel th a t our
obligations to th e public are financial,
econom ic and social and as such
should have serious consideration.
In conclusion it m u st be read ily rec
ognized th a t b an k d irectors have m uch
m ore responsibility th a n sim ply a t
tending m onthly m eetings, approving
or rejecting of loans, investing su r
plus funds, m aking periodic audits,
etc., etc. If a few m ore duties, reg u
lations nad restrictio n s are im posed
upon the director, he m ight w ell be
come a full tim e em ploye or officer
and get some com pensation for his
service, tim e and anguish.
An ideal b ank director is one w ho is
successful in his own affairs, one w ho
can and w ill give freely of his tim e to
study changing conditions, suggesting
m ethods w hereby econom ies m ay be
effected and earnings increased, also
one w ho is young in am bitions, and,
if possible, possess th e pow ers of
prophecy. In o ther w ords, he should
have a little hindsight, m ore insight
and still m ore foresight.
Farmer in Wartime
In norm al tim es, the farm er m u st
grapple w ith difficult problem s. In
abnorm al tim es, such as th e present,
those problem s are doubled.
T h at is w here such in stitu tio n s as
th e farm er-ow ned cooperatives en ter
th e picture. T hey can deal w ith th e
problem s of dw indling m arkets, of
h ig h er production costs, of changing
dom estic m arkets, of im proved pro
duction m ethods.
T hese cooperatives are grow ing in
size and in influence. The intelligent
farm er know s th a t he needs th e ir
services m ore th a n he ever did.
N EW S A N D VIEW S
(C ontinued from page 16)
cians and th e unions, in re ferrin g to
L eon H enderson, th e price ad m in istra
tor, says th a t Mr. H en derson’s a ttitu d e
illu strates th e arrogance of th e opin
ionated appointee u n d er th e Roosevelt
presidency.
“A fter all,” says Mr. Pegler, “w ho is
H enderson and w hat? He is ju st a
statistician or glorified bookkeeper
w ho w as h ired in th e early days of
th e New Deal to do trick s w ith figures
and, being a good personal press
agent w ith contacts am ong the New
Deal clique of rep o rte rs and profes
sional pipe-line gossips and a fair share
of v an ity and a love of power, has
crow ded him self into a position of
prom inence.”
Door Is Too Small
T houghtful Friend: “My good m an,
w hy don’t you take th e street car
hom e?”
Illum inated One: “Sh’ no ushe.
W ife w ouldn’t let me keep it in the
houshe.”
E m plo yers M utual C a su a lty
C o.
DES MOINES
Financial S ta te m e n t as o f Ju n e 3 0 , 1 9 4 1
A SSETS
RESERVES
M a rk e t V a lu e o f B o n d s _____ $1,837,231.86
R e serv e f o r C la im s_________________ $1,921,134.40
R e se rv e fo r U n e a rn e d P r e m iu m s - _ 1,369,588.73
O th e r R e s e r v e s ____________________
393,930.23
N o b on d s ev er o w n e d b y th e com p an y
h ave b een in d e fa u lt as to in te r e s t or
p rin cip a l.
C ash in B a n k s _______________ 1,490,844.85
M a rk e t V a lu e o f S to c k s_____
35,620.00
R e a l E s ta te (H o m e Office B u ild in g )
125,239.86
R e a l E s ta te M o rtg ag e s
(F H A I n s u r e d ) ________
363,773.50
I n te r e s t A c c r u e d ___________
10,940.39
P re m iu m s R e c e iv a b le
( N o t P a s t D u e ) _________
882,839.84
( T a x e s , C o m m issio n s,
su r a n c e, e tc .)
i n v i t a t i o n
R e in
T o ta l L i a b i l i t i e s _______________$3,684,653.36
V o lu n ta ry R e se rv e fo r
C o n tin g e n c ie s _________________
100,000.00
S u r p l u s ___________________________
961,836.94
T o t a l _________________________ $4,746,490.30
T o ta l A d m itte d A sse ts________ $4,746,490.30
A n
D iv id e n d s ,
to
M o ir a
H
a n k e r s
W h en y o u c o m e to D es M oines to a tte n d y o u r state association c o n v e n tio n , visit
o u r h o m e office lo c a te d at 2 1 0 S ev e n th S tre e t. Y o u w ill find a co rd ia l w e lc o m e .
Northwestern Banker September 19'il
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Federal Reserve Bank of St. Louis
How to F ind , and S e l l
New Business
H IS is a su b ject th a t req u ires very
careful th o u g h t and consideration
by all in su ran ce agents. T h ere is
no set ru le th a t can be definitely fol
low ed 100 p er cent th a t w ould give any
of us m agic pow er for th e sale of new
policies, b u t th e re are some fu n d am en
tal p rinciples w hich w h en applied by
each and every one of us, w ill prove
v ery beneficial an d profitable.
To m ake a com parison of th e r u n
ning of an autom obile sim ilar to th e
operation of a fire an d casu alty in
su ran ce agency w ould p erh ap s give us
a clearer idea of w h a t is necessary to
continue in business. You all know
th a t you pu rch ase a supply of gasoline
and oil for y o u r car to keep it in con
sta n t ru n n in g condition, so it is also
necessary for every in su ran ce agent
to keep a supply of new risk s and new
applications com ing into our offices to
keep our volum e of business up to th e
some am o u n t th a t we h ad th e previous
y e a r and th e g re a te r th e supply of new
policies th a t we w rite, so our p resen t
volum e w ill increase accordingly.
It has been stated th a t th e a r t of
m aking friends, th e application of th e
golden ru le and th e developm ent of
our p erso n ality go to m ake up ap p ro x
im ately 65 p er cent of our sales ability
and success in accepting th a t sta te
m ent, we are tak in g th e w ords and
advice of in su ran ce salesm en w ho have
pro v en those statem ents.
Suppose th a t we tak e th e tim e to
analyze th ese vario u s helps and to
find ju s t how w e can apply th em to
our ow n individual business. Surely
ideas th a t have been of g re a t help to
o th er in su ran ce m en, m u st be of some
benefit to us, at least in a sm all degree,
an d once we tak e th e rig h t attitu d e,
all of our affairs begin to m ove in th e
rig h t direction. No m a tte r how good
or satisfying one’s en v iro n m en t m ay
be, it can alw ays be im proved.
The a rt of “M aking F rie n d s” is one
of th e m ost needed ad ju n cts to in su r
ance salesm anship. Dale Carnegie in
his book “H ow to W in F rien d s and
Influence People” gives us a list of
th in g s th a t th is book w ill do for us.
T hey are as follows:
T
By H . O . A rthur
Arthur Insurance Com pany
Waterloo, Iowa
H . O. A R T H U R
1. Get you out of a m ental ru t, give
you new thoughts, new visions,
new am bitions.
2. E nable you to m ake friends quick
ly and easily.
3. Increase your popularity.
4. H elp you to w in people to your
w ay of thinking.
5. Increase y o u r influence, your p res
tige, yo u r ability to get things
done.
6. E nable you to w in new clients,
new custom ers.
7. Increase your earning power.
8. M ake you a b e tte r salesm an, a
b e tte r executive.
9. H elp you to handle com plaints,
avoid argum ents, keep your hum an
contacts sm ooth and pleasant.
10. M ake you a b etter speaker, a m ore
e n tertain in g conversationalist.
11. M ake th e principles of psychology
easy for you to apply in your daily
contacts.
12. H elp you to arouse enthusiasm
am ong y o u r associates.
T he principle of th e golden ru le is
probably th e oldest know n sound and
safe sales m ethod in the w orld today.
G reat dividends can be derived by
even applying th e principles of the
golden ru le in a sm all degree, and the
m ore we try to practice accordingly,
the m ore benefits we shall reap for
ourselves. A gents, isn ’t it a genuine
fact th a t it gives each and every one
of you a g reat pleasure and thrill, and
it lifts you up w henever you are able
to give insurance service according to
th e golden rule? It is an inexorable
law and one w hich you do not need
to prove to yourself, because it has
already been tested m illions of tim es
over a g reat period of years. Please
apply it and prove to yourself w h at
good it w ill do for you and y o u r busi
ness.
In m entioning th e subject, th e de
velopm ent of our personality, you can
alm ost say th a t by the application of
the principles of the golden rule, th a t
you w ill unconsciously develop your
personality. P erso n ality is a silent
p a rtn e r w orking h an d in h and w ith
the m aking of friends, and by applying
the principles of the golden rule. W e
h ear som eone state in talk in g about
some friends th a t he or she has a lot
of personality. R eally in m ost cases
th a t individual developed th a t p e r
sonality, and you, too, can do th e sam e
if you w ill only m ake up your m ind
to definitely go about it in a co nstruc
tive m anner. The developm ent of p e r
sonality m eans th a t you m u st be so
ciable. T his m ight be som ew hat diffi
cult at first. H ow ever, it is necessary
to m ake a start. You could begin by
m aking friends w ith th e children on
the streets, if th ere is no h an d ier way.
You w ill feel b etter by doing so.
W hat we need is contact w ith n u m er
ous individuals of m any tren d s of
thought, all the w hile sticking to our
purposes. T hrow aside false pride,
if it in terferes w ith y o u r purpose. Do
not hold resen tm en t or th o u g h ts of
revenge, because these take y o u r en
ergy and w aste y o u r tim e.
'Northwestern Banker September 19M
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Federal Reserve Bank of St. Louis
40
E v e ry ag en t has h a d his ow n ex
perience and I am only atte m p tin g to
advise you of some of th e m ethods
used in our office for th e soliciting and
sale of new business. W e are very
m uch in terested in w atch in g th e list of
new com ers m oving into our city. We
have some individual form s th a t we
have planned and are u sing v ery suc
cessfully, one of w hich is our reg u lar
business card an d on th e rev erse side
we are u sing a form of introduction
to be signed by som eone of our friends
or custom ers, th e n w h en th e prospect
calls a t our office, he does not feel
th a t he is an a b s o l u t e s t r a n g e r .
W e also go to th e tro u b le and ex
pense of having our own type of iden
tification card p rin ted to use am ong
prospects, and to give to our assureds,
and by so doing w e find th a t our
nam e is k ep t constantly before m any
people because th is identification card
can be used by any autom obile ow ner
irresp ective as to w h e th e r or n o t we
have th e ir autom obile insurance. We
should be co n stan tly on th e a le rt for
new ideas or for th e exchange w ith
o th er agents of w orkable plans th a t
have proven satisfactory.
SA M E DAY S E R V IC E
for the ALLIED MUTUAL POLICYHOLDER
Policyholders particularly appreciate the quick, conscien
tious, fair-minded manner in which Allied Mutual's claim
department functions when a claim develops.
Agents like this service, too. because it builds friends and
friends build business.
ALLIED M UTUAL
CASUALTY
COM PANY
Harold S. Evans, President
Hubbell Bldg.
Des Moines, Iowa
Continued Record Gains
E m ployers M utual C asualty Com
p any of Des Moines has continued to
m ake record gains d uring th e first six
m onths of 1941, th e statem en t of the
com pany as of Ju n e 30th reveals.
D uring th is period, E m ployers Mu
tu al w rote in prem ium s $2,062,177.84,
a gain of approxim ately $325,000 over
th e sam e period in 1940. P ractically
all of th is increase w as in autom obile
and public liability lines. The w o rk
m en ’s com pensation business show ed
a m odest gain also, and is expected to
show a g re a te r gain du rin g th e last
half of th e year due to increased pay
rolls and h ig h er wages.
T e rrito rially th e gain is spread
over all th e states in w hich th e com
pany operates. Am ong states in w hich
the com pany has su b stan tial volum e,
K ansas w as th e leader in th e increase.
N ew te rrito rie s producing su b stan
tial increases are M ichigan, P ennsyl
vania and W ashington.
A com parison of th e Ju n e 30th E m
ployers M utual statem en t w ith th a t
of D ecem ber 31, 1940, show s increase
in assets of $525,253. R eserves w ere
increased $434,760, an d su rplus in
creased $90,593.
Am ple reserves w ere set aside for
all claims, u n earn ed prem ium s and all
o th er obligations, including a sufficient
am ount to pay all dividends to policy
holders in states w here rates are reg u
lated. T he reserve for contingencies
rem ains a t $100,000, w hich, to g eth er
w ith su rp lu s of $961,836.94, gives the
com pany a su rp lu s over all liabilities
of m ore th a n $1,000,000.
Infantile Paralysis
R U R A L B A N K E R S PROFITING
Results Obtained
on a
Successful Plan of Cooperation
In 1941 brings this Company the largest business volume in
its history.
Our Best References Are the Bankers
Now Making Money on This Plan
Policyholder’s National Life Insurance Company
Old Line Legal Reserve
Northwestern Banker Septem ber 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Sioux Falls, S. D.
D on’t have y o u r y o u n g ster’s tonsils
tak en out w hen th ere is infantile p a r
alysis around—h e’s tw o to four tim es
as likely to catch it afte r a recen t to n
sillectom y, according to a w arn in g is
sued by th e M edical D epartm ent of
N o rth w estern N ational Life In surance
Company.
Records of m an y hu n d red s of cases
of “polio” tre a te d in hospitals in such
centers as T oronto and Boston, show
a m uch h ig h er frequency of th e “bul
b ar,” or deadlier form of polio, and a
m uch h igher fatality rate, am ong pa
tien ts w ho had h ad th e ir tonsils re
moved, th e re p o rt points out.
The open season for infantile p araly
sis outbreaks extends from Ju n e to
Novem ber, w ith th e peak num ber of
cases usually reached in A ugust.
Therefore, th e ra th e r com m on p aren tal
policy of “having th e ch ild ren ’s tonsils
out in A ugust, so as to be ready for
school,” is risk y if th ere are any cases
of polio in th e vicinity, th e rep o rt sug
gests, and in such circum stances the
41
o p eratio n should be postponed, unless
th e tonsils are so diseased or otherw ise
abnorm al th a t th e need for im m ediate
rem oval is urgent.
In general, such com parative rec
o rd s as are available indicate a h ig h er
su sc e p tib ility to in fan tile p aralysis
■among child ren w ith o u t th e ir tonsils,
th a n am ong those w ith tonsils intact,
th e re p o rt states, w hich suggests th a t
th e tonsils have a definite protective
fu n ctio n , and should not be rem oved
ju s t on th e principle th a t th e child
"“w ill be b e tte r off w ith o u t th e m ”—b u t
sh o u ld only be rem oved if actu ally dis
eased or o therw ise abn o rm al and
th e re fo re a handicap to health.
C hildren tw o y e a rs old are th e age
g ro u p m ost freq u en tly strick en by in
fan tile paralysis, th e re p o rt states.
S uscep tib ility to “polio” infection
d ro p s off sh arp ly above four y e a rs of
age. H ow ever, som e ad u lts are stric k
en in every epidemic.
C o n trary to po p u lar belief, in fan tile
paraly sis is not essentially a disease
of congested city areas. In th e 1937
epidem ic in O ntaria, Canada, cases
w ere w idely d istrib u ted in ru ra l areas
as w ell as in T oronto. In th e 1910-12
epidem ic in Sweden, th e re w ere m ore
cases of “polio” p er th o u san d of popu
latio n in th e ru ra l d istricts th a n in th e
cities. So ta k in g th e ch ild ren to the
c o u n try for th e sum m er is fa r from a
su re safeg u ard ag ain st in fan tile p a r
alysis.
D ifferent epidem ics v a ry tre m e n
dously in th e p ro p o rtio n of severe
cases. T he b u lb ar type of “polio” is
th e m ost dangerous, because paralysis
of th e b re a th in g ap p a ra tu s often re
sults. I t is th e b u lb ar type to w hich
g re a te r susceptibility is show n by re
c e n t tonsillectom y cases.
Of 418 cases of in fan tile p aralysis
reco rd ed in in fa n ts’ and ch ild ren ’s hos
p ita ls in Boston, 217 w ere spinal cases
a n d 131 w ere b u lb ar cases. Only tw o
an d th ree-q u arters p e r cent of th e
sp in al polio cases h ad h ad tonsillec
tom ies w ith in th irty days preceding
th e ir attack , b u t 13 p er cent of th e
b u lb a r cases h ad h ad tonsillectom ies
w ith in tw e n ty days p rio r to th e onset
of th e ir polio sym ptom s. F ro m seven
to eighteen days is th e com m only ac
cepted in cubation period for infantile
paralysis.
R ecords of several h u n d re d cases in
th e T oronto epidem ic of 1937 show
th a t th e b u lb ar ty p e of polio w as ap
pro x im ately tw o and one-half tim es as
fre q u e n t am ong p a tie n ts w hose tonsils
had been rem oved, as am ong those
w ho still had th e ir tonsils. T he death
ra te w as four tim es as high am ong the
group w hose tonsils h ad been rem oved
som e tim e in th e past.
A lthough m uch is still to be learn ed
ab o u t in fan tile paralysis, it is definite
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
★
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★
FIELD S E R V IC E MEN
trained to Serve Y O U
★
In y o u r W e s t e r n M u tu a l
a g e n c y c o n t r a c t i s th e
u n w r i t t e n s e r v i c e of
tr a in e d W e s te r n M u tu a l
fie ld m e n , a n x io u s , w illin g
a n d a b le to s e r v e y o u
w e ll. I n v e s t ig a t e w h a t
th is E X T R A S E R V I C E
c a n m e a n to y o u o n in
crea sed a g en cy produc
tio n .
★
Legal R e s e r v e —N o n -A s s e ss a b le
F ir e a n d A u to P o lic ie s
S ta n d a r d P o lic y F o r m s
★
Western Mutual
F ir e I n s u r a n c e C o.
9th and Grand
"Over
★
★
★
Des Moines, Iowa
a T h ird o f a C e n tu ry o f S a f e t y a n d S e r v i c e W ith S a v in g s "
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Northwestern Banker Septem ber 1941
42
THE SIGN OF SEC U R IT Y
A re p r o d u ctio n o f th e 84-foot n eon to w er s ig n s er ected
on h ig h w a y s a p p r o a ch in g D e s M o in e s
" BANKING AND LIFE INSURANCE”
Are Character Builders
“T h e m an w h o c an n ot a n d does n ot save m on ey, can n o t an d
w i ll n ot d o a n y th in g w o r th w h i l e .” — A n d re w C ai’n eg ie.
IO W A G E N ER A L A G EN TS
C e d a r R a p id s
W . D. M O O R E
M a rs h a llto w n
H. W. M A RSH A LL
C la rin d a
G E O . L. M A C E
M a so n C ity
JA K E D O U G L A S
D a v e n p o rt
L. T. S T O N E
M t. P le a s a n t
O. T . W IL S O N
D e s M o in e s
FR ED H. BROW N
S io u x C ity
W . H. W R IG H T
D A L E L. Z A P P
D ubuque
E. L. G IF F O R D
S to rm L a k e
GLEN W. HARVEY
F t. D o d g e
H U G H Z IE G L E R
W a te rlo o
M A C K F IS H
Northwestern Banker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ly know n to be a v iru s form of infec
tion. Polio infection m ost frequently
occurs, m edical s c i e n c e believes,
th ro u g h th e resp irato ry tract, al
though th ere is now considerable evi
dence th a t it can also be tra n sm itte d
by food or drink.
Sym ptom s of an attack of “polio”
com m only include headache, vom iting,
pains in lim bs, an d rising tem p eratu re.
H ow ever, these sym ptom s are not al
w ays present, and fu rth erm o re these
p articu lar sym ptom s do not necessa
rily m ean polio; therefore, th e only
safe ru le is to call a physician pro m p t
ly if th e child becomes ill. If th e p h y
sician suspects polio, he is likely to
recom m end th a t th e spinal fluid be
exam ined to m ake sure. This is a
sim ple procedure in com petent hands
and is a highly desirable safety m eas
ure; pro m p t cooperation of p aren ts
w ith th e physician can m ake a great
difference in th e child’s chances for
com plete recovery, the re p o rt suggests.
M odern m ethods of treatm en t, in
cluding h y d ro th erap y and m assage,
are g etting com plete cures in n u m er
ous cases, and a steady advance in
u n d erstan d in g of th is disease suggests
th a t it m ay soon be bro u g h t u nder
control.
The v ast m ajo rity of polio cases are
treated at home, although severe cases
are best tre a te d at a hospital. S trict
isolation of th e p a tien t is recom
m ended, because factors controlling
th e tran sm issio n of th e infection to
others are still so little know n.
79 Years Young
The firm of R uhl and R uhl, D aven
port, Iowa, is one of th e oldest gen
eral insurance and real estate agencies
in the state of Iowa, being established
in th e year 1862. The agency has
operated u n d er its p resen t nam e since
1920 w hen th e tw o p resen t m em bers
of th e firm, E d w ard L. R uhl and C.
A rth u r R uhl, purchased th e in terest
of F re d W ern en tin and joined th e ir
father, the late Jo h n H. Ruhl, in th e
agency, changing th e nam e to R uhl
and Ruhl.
T he agency handles all types of in
surance except life, fidelity and su rety
bonds and has a com plete real estate
departm ent, specializing in pro p erty
m anagem ent and business leases.
T hey also rep resen t th ree w ell know n
life insurance com panies for m ortgage
loans.
The oldest A m erican F ire In surance
Company, nam ely, th e Insu ran ce Com
pany of N orth A m erica, entered th e
agency w hen it w as established in
1862 and has been rep resen ted con
tin u o u sly since then. Two o ther com
panies have also had continuous re p
resen tatio n for over seventy years.
43
5 Cardinal
Ru/CS of
Selling Life Insurance
E CONTEND th e trad itio n al
By C arro ll C . Day
w ay of p resen tin g life in s u r
General Agent
ance is erroneous. It is tr a
Pacific Mutual Life Insurance Co.
ditional to arg u e w ith m en about th e ir
Oklahoma C ity
a ttitu d e to w ard life insurance. I t is
tra d itio n a l to build a code of objections
and a code of tric k an sw ers to them .
W e believe th e re are five sim ple sell clination w hen we are buying w h at
ing ru les th a t w ill m ake it easier th e o th er m an sells.) T he conglom
erate m ess of life in surance th a t m ost
for m en an d w om en to u n d e rsta n d
m en own is based upon the fact th a t
life insurance.
H ere th e y are, th e five cardinal ru les th e y w rote th e rules in purchase. Ul
tim ately all p ro p erty m u st be m eas
of selling:
u red against th e job th a t it m u st p e r
1. N ever argue.
form. Men are not inclined to try to
2. N ever discuss life insurance.
3.
A lw ays discuss life—its problem s w rite th e rules w hen w e tu rn th e
discussion im m ediately to th e things
are nev er debatable.
4.
Get ag reem en t on th e m ajo r is th a t p ro p erty m u st do, ra th e r th a n
ju s t to a discussion of th e p ro p erty
sues.
5.
D on’t let th e b u y er w rite th e itself.
L et me illustrate: An a tto rn ey for
rules.
1.
N ever argue. L e t’s see w h a t I a loan com pany is b ro u g h t into th e
m ean: T here is a n a tu ra l tendency to office by one of th e m en to discuss life
argue. You n ev er w in an arg u m en t. in surance w ith me. A t least, th a t w as
In m y school days, I w as on th e de w h at I thought. As soon as th e m an
batin g team . In m y w hole experience, w as seated, and th e salesm an had
I n ev er lost a debate. Oh, th e judges stated his case, th e m an came back
said I did. In reality, it m akes no dif th is way: “I have m erely come over
ference w h at m en th in k about life in h e r to h um or th e salesm an to w hom I
surance. I w ill d em o n strate th a t in a w as obligated. I am not in terested in
any life insurance. I don’t w a n t any
m om ent.
2.
N ever ta lk life insurance. Life m ore; I have all I need; I n ever ex
in su ran ce is a m echanical device about pect to buy an y more. I am not in
w hich m en indulge m an y opinions. clined to come into an insurance of
N ever discuss it u n til th e re is a m eet fice and have th em p u t th e ‘th ird
degree’ to me.
ing of m inds on th e econom ic problem
of life.
W ell, th a t is plain E nglish—easily
3.
A lw ays ta lk life. A discussion of understood. I can m atch an a rg u
th e problem s of living, as set dow n by m en t v ery easily, b u t th e cardinal
controlling pow ers is a subject w hich
ru le says, “N ever argue,” and the card
in tellig en t people n ev er debate and
inal ru le says, “Get agreem ent on
upon w hich in tellig en t people alw ays m ajors,” and so I say:
agree.
“W ell, le t’s forget about it. I don’t
4.
Get agreem en t on m ajors. T h at w an t to talk life insurance to m en w ho
m eans, in stead of arg u in g about life don’t w an t to talk about it. B ut you
did m ake one rem ark th a t fascinated
insurance, get ag reem en t on th e th in g s
th a t m en m u st agree w ith you on— me, because it lends itself to m isu n
all m en m u st agree on m ajors. No d erstan d in g —th a t is, th e rem ark m ay
body can deny th a t earn in g pow er not m ean to me w h at it m eans to you
term in ates. Nobody can deny th a t, —I w ould like to find out. You used
w hen earn in g pow er term in ates, a th e phrase, ‘th ird degree.’ I w onder if
new source of incom e is necessary. W e th is is y o u r u n d erstan d in g of it . . .
do you have a fam ily, Mr. S?
w ill only discuss m ethods, (p ro p erty )
“Well, yes, I have a wife and a sev
afte r th e problem of living h as been
fixed, and we w ill m easu re th e p ro p en-year-old boy.”
“Oh, I see. These boys are great
e rty ag ain st th e m ajors an d not
in stitutions, a re n ’t they? I w onder if
ag ain st opinions or prejudices.
5.
D on’t let th e b u y er w rite th e th is is a practical picture. You see, I
rules. And, th a t’s th e inclination of know som ething about th e problem s of
buyers. (T h at is y o u r and m y in- farm loan com panies today. They
W
are w orking you hard, a re n ’t they?
You are aw fully tired —long h o u rs—
try in g situations. Is th is about the
w ay it runs? You left hom e yesterday
m orning, and because of the press of
duty, you ru sh ed dow n and ate a h u r
ried breakfast. You got aw ay before
‘Sonny’ w as up.
You m issed the
m orning paper. You had a try in g
day. In th e evening, you tu rn e d your
face hom ew ard w here th ere w as re st
and peace—th a t’s home. You had y o u r
favorite meal, and a fter dinner, you
w en t in fro n t of th e fireplace. You
slipped on yo u r house slippers and
yo u r jacket. You filled th e pipe. A nd
you reached over and picked up th e
m orning paper and said to yourself,
‘I ’m going to relax, and have an h o u r
of m y ow n.’ A nd about th a t tim e, up
betw een y o u r knees came this sevenyear-old boy. He knocks th e paper
out of y o u r hand; he clim bs up on
yo u r lap; he sta rts telling you about
some honest-to-God problem s — his
problem s. A nd th ere he sits u n til
m o th er comes and tells him it is tim e
to go to bed. ‘Tell your daddy “good
n ig h t,” and I w ill take you up and
tuck you aw ay’—and th en th is boy
reaches up and lays his h and on your
cheek and says tw o w ords th a t m ean
m ore th a n all the w ords in th e dic
tio n ary —ju st tw o w ords—“m y daddy”
—and he is gone. T h a t’s about th e
w ay it runs, isn ’t it?”
A nd w ith a te a r in his eye, he said it
was. A nd th en I said to him:
“I w an t to draw you an o th er pic
ture. W hen you are sixty-two, th is
boy w ill be tw enty-six. A nd for tw entysix years, ju st exactly th e sam e as for
th e first seven years, you have tried
to build prestige w ith th a t boy. I
don’t know w hen farm loan com
panies let atto rn ey s go, b u t th ey do
let them go and w hen th a t day comes,
you go hom e and say to m other, ‘Well,
it’s all over—m y paycheck has stopped
—we m u st have a new source of in
come, and th ere is a depression on—
p ro p erty isn ’t paying off.’ A nd so th e
tw o of you cross over to the house of
th is tw enty-six-year-old boy, and you
knock on th e door, and say to him ,
‘Son, I w an t to step dow n off th e
pedestal of prestige. I w an t you to
take care of us.’ ”
“T h a t’s w h at I call th e ‘th ird degree’
—w h at do you call it?”
Northwestern Banker Septem ber Î9M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
44
A nd then, I said to him , “I w onder
if we can get ag reem en t on these
m ajors? You w o rk for money. Yes,
you trad e it for th e rig h t to live to
day.”
“Yes.”
“Some tim e, fifty, sixty, seventy-five
■
—I don’t care w h en —earn in g pow er
w ill stop.”
“Yes.”
“W hen it stops, you w ill need a new
source of incom e.”
“Yes.”
“Then, I w a n t to co n g ratu late you
for hav in g th e k ind of p ro p e rty in
Your p ro p e rty box (and I know you
have, because you don’t need in su r
ance) th a t w ill pay income-—-no m a t
te r w h en earn in g pow er stops—and
pay it in spite of depression—has
proved it w ill pay it, because it is
paying it today. I w a n t to co n g ratu
late you because I ow n th a t k in d of
property, too. Mine g u aran tees to pay
incom e w ith o u t supervision from me
w h en I w ill be tired .” D on’t w o rry —
we talked insurance to him , and w ith
out argum ent.
Agency Picnic
The Des M oines Agency of th e Mu
tu al Life of N ew York, Thos. Read,
m anager, held its annual picnic last
m onth at Ledges S tate P ark, n ear
Boone. More th a n a h u n d red w ere in
attendance, including agents and th e ir
fam ilies.
Farms Selling Fast
F a rm s are selling faster th a n a t any
tim e since the depression—selling to
te n a n t farm ers w ho can’t find satisfac
to ry land available for rent; selling to
factory w o rkers w ho w an t to raise
p a rt of th eir food; selling to inflationm inded business m en and h arried in
vestors; and to city fam ilies w ho w an t
No Increase in Our Prices
IN SPITE OF GREATER NEED OF PROTECTION
AGAINST LOST EARNINGS BY SICKNESS
OR ACCIDENT
D uring these try in g days the B a n k er’s tim e is m ore valuable th an ever and
loss on account of sickness or a ccidental in ju ry sho u ld be in su red .
W e have the m ost lib e ra l p olicies fo r select risks available anyw here at
so sm all a cost.
$5000.00 of accident insurance paying $25.00 a w eek for two years costs
only $1.00 a m onth. O ther p olicies paying up to $50.00 a w eek, w ith sickness
and h o sp ital and surgical benefits available if desired.
R ecom m endations on file from b an k ers in every state and C anada.
No m edical e xam ination and no com m issions to pay.
a cushiony retirem en t spot in case of
personal or national economic troubles.
But, according to a survey of farm
realty agencies by N orth w estern N a
tional Life In su ran ce Company, few
p resen t farm -ow ners are adding to
th e ir acreage now because the combi
nation of th e d raft and in d u strial labor
dem and is m aking it difficult for th em
to get enough help to operate th e acres
th ey already own. T herefore u n im
proved farm land generally has not
show n th e run-up in sales enjoyed by
farm s com plete w ith buildings, th e
stu d y finds.
T he im provem ent in sales of farm s
is nation-wide; over th ree-fourths of
th e farm realty agencies rep o rtin g in
th e survey, w ith sales offices in 32
a g ricu ltu ral states, re p o rt sales defi
n itely increased com pared w ith p re
ceding years, w ith m ore all-cash deals,
w ith adequate dow n paym ents easier
to get, and w ith dealings active in th e
b e tte r class farm s, instead of being
largely confined to distress properties
as in p ast years. A notable increase
is rep o rted in th e nu m b er of city peo
ple seeking farm s.
Says th e vice p resid en t of a New
Y ork farm realty com pany w ith sales
agencies from coast to coast:
“A pril, May, Ju n e and Ju ly of th is
y ear gave us th e larg est n um ber of
sales we have had du rin g any like
period in th e p ast nine years. A pproxi
m ately 30 p er cent of th e sales we a re
m aking are cash on delivery of deed.
“A g reat m an y people w an t to p u r
chase fairly good pro p erties th a t m ay
be operated by a te n a n t or m anager,
Write for application and particulars to
Minnesota Com m ercial Men’s
Association
PA U L CLEM EN T, S ecretary
2550 P illsb u ry Ave. So.
M IN N EA PO LIS', M IN N .
l 0
%
- 4
0
%
W e have a p la n th at m ay increase the effectiveness of y o u r p re sen t
L ife In su ran ce front 10 to 40 p e r cent w ith o u t a d d itio n al cost to you.
O ur new copy rig h ted E state C ontrol P la n has show n thousands how
to get the m ost out of th e ir Life In su ran ce. W rite today—no obliga
tion.
E. H. SNOW, General Agent
AETNA LIFE INSURANCE COMPANY
3rd F lo o r H u b b ell Bldg.
DES M O IN ES, IO W A
Northwestern Banker Septem ber 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
MID-WESTERN
C A SU A LTY
COM PAN Y
A Legal Reserve Mutual Company
9 Automobile Insurance
# Accident and Health
O Burglary and Robbery
Special Service Station
Messenger and Office
Mercantile Safe
Storekeepers
Residence
Open Stock
# General Liability
Special Service Station
Garage
Owners, Landlords,
Tenants
Sports
Oil Products
Mistakes in Delivery
An Agency Company
HOME OFFICE
EMPIRE BUILDING
DES MOINES, IOWA
45
w ith th e idea th a t la te r on th e y m ay
use th is farm p ro p e rty as a so-called
‘secu rity hom e’.”
A Florida farm re a lty concern states,
“W e note th a t m an y city people w ho
nev er th o u g h t of ow ning a farm are
becom ing in te reste d .”
F rom a B altim ore real estate firm:
“W e are literally flooded w ith inquiries
for sm all farm s and sm all co u n try
properties, and we find th e supply to
be scarce.”
A F o rt W orth, Texas, re a lto r ob
serves: “More th a n half of th e farm
p ro p erties sold aro u n d h ere are being
p u rch ased by people w ho are fearfnl
of inflation.”
F ro m a F resno, Calif., realtor:
“M any city people are buy in g nearb y
sm all ra n c h hom es, often im proving
th em w ith new residences.”
F ro m a cen tral Illinois re a lty com
pany: “Considerable dem and from city
people for farm land to diversify th e ir
in v estm en ts and hedge ag ain st infla
tion; also from w ork in g people for subsistence tra c ts of 10 to 40 acres.”
F ro m a so u th e rn M innesota farm
re a lty agency: “The tre n d of farm sales
is definitely unw ard; th is fall w ill see
a considerable increase in sales to
fo rm er te n a n ts on account of a scarcity
of re n ta l farm s in so u th e rn Minnesota.”
Com m ent from a D etroit. Mich., real
estate in v estm en t firm: “T here is an
ever-increasing tend en cy in th is com
m u n ity for city people to seek a plot
of land of th e ir own, outside th e city
lim its. H igh tax es are p a rtia lly re
sponsible; a n o th e r c o n trib u tin g factor
E x p e r ie n c e
s p le n d id
in
b a n k in g
b ack g ro u n d
I n s u ra n c e w o rk .
fo r
is
is th e steady decentralization of busi
ness districts, w ith shopping centers
fa rth e r and fa rth e r out. A th ird factor
is th e desire of in d u strial w o rkers for
a subsistence plot as a safeguard
ag ainst fu tu re unem ploym ent.”
Convention Fun
A m erica’s life insurance m en w ill
roll up th e ir sleeves and take dow n
th e ir h a ir on T h u rsd ay evening, Sep
tem ber 18, in one of th e g reatest in
form al fun jam borees in convention
annals, according to plans m ade by th e
C incinnati A ssociation of Life U nder
w riters. As hosts to the 52nd annual
convention of th e N ational Associa
tion, th ey w ill tu rn th e Roof G arden
of th e H otel Gibson into an “u n d e r
w rite rs ’ club” for th e evening.
T he piece de resistance of th e affair
L. E. Ellis, Pres.
H. G. Zimmerman, Vice Pres.
H. A. Petersen , Sec.
L. E. E L L IS & CO.
G e n e r a l
4 6 Years In T he Iowa Field
® We W rite No Counter Business
© Represented In Over 1500 Iowa Agencies
4 1 5 Securities Bldg.
w ith a m b itio n , good c h a r a c te r ,
. . . and a hearty welcom e
to the m em bers o f the
a n d a d e s ire to e a r n a s u b s ta n
BANKERS
Connecticut Mutual
Life Insurance
Company
IOWA
tia l in c o m e .
ASSOCIATION
W r i te
R. H. PSCKFORD,
lies Moines, Iowa
The
G R E E T I N G S !
W e h av e an
u n u s u a l o p p o r tu n ity f o r a m a n
I n s u r a n c e
•
a
L ife
will be a series of basketball gam es
played by some of th e c o u n try ’s m ost
noted fieldmen, astride donkeys. T here
w ill be four games: N ational Associa
tion officers vs. trustees; Chicago vs.
New York; Texas vs. New E ngland,
and a com posite q u in tet of M illion
D ollar R ound Table m em bers and m an
agers against an “insurance salesm an”
com bination.
The personnel of th e team s, as an
nounced by Joseph M. Gantz, Pacific
M utual, Cincinnati, ch airm an of the
affair, w ill be as follows:
N ational A ssociation Officers: P resi
d en t H a rry T. W right, Chicago; P ast
President Charles J, Z im m erm an, Chi
cago (captain); M anaging D irector
Roger B. Hull, New York; E xecutive
S ecretary M axwell L. Hoffman, New
York, and Vice P resid en t Jo h n A.
W itherspoon, N ashville; vs. T rustees
#
(S in c e 1846)
■W
General Agent
THE
NORTHWESTERN MUTUAL
LIFE INSURANCE COMPANY
510 Security Building
Cedar Rapids, Iowa
HOMESTEADERS
LIFE
Eastern Iowa A gen cy
ASSOCIATION
A. A. B all, P re sid e n t
PAUL C. OTTO
G eneral Agent
601 Securities Bldg. Des M oines
1112 D a v e n p o rt B a n k B u ild in g
D a v e n p o rt, I o w a
Northwestern Banker Septem ber I9bl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
46
O. D. Douglas, San A ntonio (captain);
R ay Hodges, C incinnati; H e rb e rt A.
Hedges, K ansas City; Isadore Sam uels,
Denver, and Jam es E. R utherford,
Seattle.
Chicago: P hillip B. Hobbs (captain),
W illiam E. Houze, A lvin McKeough,
E dw ard W. H ughes and E dw in B.
T hurm an; vs. New York: Lloyd P a t
terson, Clancy D. Connell, R alph G.
E ngelsm an, H. A rth u r Schm idt and
Theodore M. R iehle (captain).
Texas: W illiam H. H arriso n , H ous
ton; Jo h n A. Monroe, Dallas; H arlan
W inn, San A ntonio; H. R ussell Sm ith,
San Antonio, and Ju l B. B aum ann,
H ouston (captain); vs. New England:
R obert P. B urroughs, M anchester (cap
tain ); C larence W. W yatt, Boston;
W ilbur W. H artsh o rn , H artford; Wil-
GREETINGS!
M R. B A N K E R
▼▼T
Our New Mortgage Policy
will interest you
TTY
W rite
PRESTON H. LUIN
G eneral A gent
A m erican M u tu al L ife
In su ra n c e C om pany
218 L ib erty Bldg.
Des M oines
liam W. B anton, P ortland; and Paul
F. Conway, Syracuse.
M illion D ollar R ound Table and
M anagers: P au l C. Sanborn, Boston
(captain); George E. Lackey, Detroit;
F o ster V ineyard, L ittle Rock; Adam
R osenthal, St. Louis; and P. B. Rice,
H arrisburg; vs. “In su ran ce Salesm en”:
S. D. W eissm an, Boston; B. C. T h u r
m an, New York; J H aw ley W ilson,
O klahom a City; Roy Ray R oberts, Los
Angeles, and Lee W andling, W ichita.
th e ir choice of atten d in g a C incinnati
Reds baseball game, going on a spe
cially conducted tw o-hour sightseeing
to u r of C incinnati and vicinity, or a t
tending a special d inner and floor show
at th e B everly H ills C ountry Club,
across th e Ohio riv e r in N ew port, Ky.
At th e la tte r place, delegates w ill have
th e op p o rtu n ity of dancing and listen
ing to the m usic of Ja n G arber and
his orchestra.
E ach gam e w ill last ten m inutes,
and th e rules, such as th ey are, are
p ractically negligible.
O ther featu res of th e jam boree w ill
include music, dancing, refresh m en ts
and several specialties designed to pro
m ote general conviviality, according
to th e hosts.
A second en terta in m e n t featu re th a t
C incinnatians expect to m eet w ith
th o ro u gh approval on th e p a rt of the
delegates is th e N ational A ssociation
golf to u rn am en t, to be held at the
fam ous Kenwood C ountry Club. In
charge of this activity is M. J. H am il
ton, M utual Benefit, sub-chairm an of
en tertain m en t.
T he Kenwood C ountry Club has tw o
eighteen-hole courses, am ple to accom
m odate th e m ore th a n 400 golfers ex
pected to take p a rt in th e to urnam ent.
It is a cham pionship layout in every
sense of th e word, having played host
to th e N ational A m ateur C ham pion
ship in 1933 and th e Goodall RoundR obin in 1938.
SINCE 1899
FARM AND CITY
MUTUAL INSURANCE ASSN.
OF IOW
A
Has been strictly an Iowa Mu
tual Fire and Tornado Associa
tion, insuring city dwellings and
farm property.
Your good will solicited.
Agencies open in unoccupied
territories.
F o rest H u tten lo c h er, P re sid e n t
S. D. Ju rg en sen , Secretary
DES MOINES
On th e basis of 18-hole m edal play
com petition, th e following prizes w ill
be given: first th ree low gross and
first th ree low n et scores; th ree blind
bogey prizes; and five additional prizes
based on u n u su al perform ances.
B e st ivishes to th e m e m b e r s
o f th e
Also a t Kenwood, delegates w ill have
th e o p p o rtu n ity of using th e club
sw im m ing pool. N on-athletes w ill have
Io w a B a n k e r s A s sociation
May you have a most
successful annual meeting
this month in Des Moines
FISHER AND FISHER, GENERAL AGENTS
C O N N E C T IC U T M U T U A L LIFE IN S. C O .
921 Fleming Bldg., Des Moines, Iowa
“Professional Life Insurance S e r v i c e ”
C O N N E C T IC U T
G E N E R A L LIFE
IN SU R A N C E
COM PANY
C H A R LE S M. M A XW ELL
Iow a State M anager
640
C lau de F ish e r
Northwestern Banker Septem ber 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
S h erry F ish e r
D es
M o in e s
B u ild in g — D e s
M o in e s
47
New General Agent
D avenport, Iowa, has a new g eneral
agen t direct from M anila in th e P h il
ippines, in th e person of E. W. Schedler, th e new Occidental Life general
agen t in th e Tri-City area.
Mr. Schedler, w ho has five counties
in Iow a and Illinois as his te rrito ry ,
is a nativ e of O klahom a and grad u ated
from th e O klahom a A & M college.
He w en t to th e P hilippines in 1924
w ith th e B ureau of In su la r Affairs,
and en tered th e in su ran ce business in
T H E
D A R L IN G
AGENCT
BANKERS LIFE C O M P A N Y
818 Merchants Nat. Bk. Bldg.
CEDAR RAPIDS. IOWA
Credit life insurance w as introduced for the benefit of the
borrower.
He protects his family's interest in the security
he offers the bank for a loan. Help your borrower by offering
him an opportunity to protect himself.
W ebster Life Insurance Company
E. w . S C H E D L E R
1926 w ith th e In su la r Life A ssurance
Com pany of M anila.
He rem ain ed w ith th is com pany
u n til 1937 w hen he w en t w ith th e
O ccidental Life as its life d ep artm en t
m anager. In fact, he opened th e ir of
fice for th em in Manila.
T he M anila office of th e Occidental,
according to Mr. Schedler, issued pol
icies up to $25,000 and is p ractically a
com pany u n to itself.
Mr. Schedler, w ho speaks Spanish,
still ow ns his hom e in M anila and says
th a t he g reatly enjoyed his 15 years
sp en t in th e Philippines.
Agency 57 Years Old
The D avenport g eneral agency of
th e N o rth w estern M utual Life In s u r
ance C om pany is 57 y ears old. Jam es
H. Copeland is gen eral agent and is
only th e th ird m an to hold th a t office
in 57 years. Mr. Copeland has been
w ith th e N o rth w estern M utual for 28
years. The N o rth w estern M utual has
over 145 m illions of life in su ran ce in
force in Iowa, w hich is m ore th a n any
o th er com pany. T here are 16 good
b an k ers in sm all tow ns in eastern
Iow a w ho hold con tracts w ith th e
Copeland Agency, and Mr. Copeland
is looking for additional b an k er agents.
T he tu rn o v e r in th e Copeland Agency
is re m a rk a b ly small.
Des Moines, Iowa
GREETINGS
to t h e
FIRSTPOLICYISSUED
FEBRUARYIJ843
THOMAS B. READ, Mgr
F I R S T IN
AMERICA
IO W A B A N K E R S
A S S O C IA T IO N
and now in our
99th Y E A R
of Protection
a n d Security
IN T E R -S T A T E B U SIN ESS
M E N ’S A C C ID EN T
C O M PA N Y
Write tor information
regarding our Special
Agency Contract tor
Bankers
IN C O M E P R O T E C T IO N
O NLY
The Mutual Life Ins. Co. of N. Y.
R o b e rt A. B ro w n , P r e s id e n t
1122 Des Moines Bldg.
Des Moines, Iowa
D es M o in es, Io w a
Northwestern Banker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
48
Civil Service Positions
F o r filling existing vacancies in th e
F ed eral D eposit In su ran ce C orpora
tion, th e U nited States Civil Service
Com m ission announces an open com
petitiv e ex am ination for positions as
ju n io r b ank exam iner w ith th e corp o r
ation. The Civil Service Com m ission
w ill receive applications from S eptem
ber 2 to October 2, 1941. Positions pay
$2,000 a year. A t least one y ear of
ban k in g or o th er financial experience
is req u ired of applicants, plus th re e ad
ditional y ears of eith e r ban k in g and
financial experience or college, ac
countancy or law school education.
Age lim its are 23 to 35. F u rth e r de
tails as to req u ired qualifications and
subjects upon w hich ap plicants w ill be
rated are described in th e com m is
sion’s form al announcem ent, available
at any first or second class post office.
S ecretary Ickes w as form ally ad
vised of th e action of th e insurance
com panies th is m orning w hen H ow ard
M. Starling, m anager of th e W ashing
ton Office of th e N ational B ureau of
C asualty and S urety U nderw riters,
p ersonally delivered th e following let
ter, signed by W illiam Leslie, general
m an ager of th e N ational B ureau of
C asualty and S u rety U nderw riters; A.
V. G ruhn, general m anager of the
A m erican M utual Alliance, and F. A.
F lem ing, general m anager of th e Mu
tu a l C asualty I n s u r a n c e R ating
B ureau:
“In th e ir desire to cooperate to the
fullest possible ex ten t in the effort, in
th e in terests of national defense, to
b rin g about a v o lu n tary reduction in
the use of petroleum products, the
stock and m u tu al casualty insurance
IN C R E A S E Y O U R IN CO M E
Let me tell you about my plan which will
help You increase Your Incom e
com panies nam ed in th e attached lists
have th ro u g h th e ir respective organ
izations decided to am end th e ir u n d er
w ritin g rules and th ereb y rem ove a
possible d e te rre n t to th e use of one
p riv ate passenger autom obile by sev
eral persons trav elin g to or from a
com m on destination as, for exam ple,
fellow-employees.
Accordingly, the
following changes have been adopted:
“1. The m anual exclusion w hich now
appears in the policy as:
“ ‘This policy does not apply: . . .
w hile th e autom obile is used as a pub
lic or livery conveyance, or for c a rry
ing of persons for a charge, unless
such use is specifically declared and
described in th is policy and prem ium
charged th e re fo r’
is am ended by th e deletion of th e
w ords ‘or for carry in g persons for a
charge.’
“2. The m anual rules req u irin g an
additional prem ium of 10 p er cent
w here a p riv ate passenger autom obile
is used for th e carry in g of persons for
a charge are suspended.
“The p rin tin g of revised policy form s
and necessary filings w ith state au
th o rities w ill be carried out as ex
peditiously as possible.
W r ite m e to d a y
Martin L. Seltzer, General Agent for Iowa
Kansas City Life Insurance Co.
1 024 Des M oines B uilding
Des M oines, Iowa
S in ce re
to
G re e tin g s
the
IO W A B A N K E R S
Why Not Represent
L ife A s su ra n c e
“T h e D ivid en d P aying
C om pany o f A m erica''
In Y o u r T errito ry?
S o c ie ty
of United States
CRUM and FORSTER
Special Agent
W. E. NORDELL
Special Agent
505 insurance Exchange Bldg.
DES MOINES
Northwestern Ranker September 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
- We have 16 Banker Agents in
Southeastern Iowa.
Write: James H. Copeland
M. C. NELSON, State Manager
State Agent
HOMER TEMPLETON
An increase in 1941 accident and
h ealth prem ium s of approxim ately
$35,000,000 w as estim ated by H arold
R. Gordon, executive secretary, H ealth
and A ccident U nd erw riters Confer-
T h e E q u it a b le
A S S O C E A T IO N !
W. H. FAULKNER
Accident and Health
Increase
301-2 F irst N at. B ank Bldg.,
D avenport, Iow a
for contract
Equitable Floor
Old Colony Bldg.
10th and Grand Ave.
Phone 3-3231
Des Moines, Iowa
The 09101188
", "
'
Mutual Life
Insurance Co. of Milwaukee
Ins. in force------- $3,984,613,178
A s s e ts __________ 1,396,631,083
More Life Insurance in force in
Iowa than any other Company.
49
ence, based upon business rep o rted for
th e first six m onths of th is year.
A to tal of $310,000,000 of accident
and h ealth prem ium s th is y ear is re
flected by an 11 per cent increase for
th e first six m o n th s of 1941, com pared
to sim ilar period last year. T his esti
m ate is m ade as a re su lt of data com
piled on 80 p er cent of th e to tal acci
den t and h ealth prem ium incom e of
m em bers of th e H ealth and A ccident
U n d e rw rite rs Conference.
Should th e tre n d indicated by the
first six m o n th s’ experience of th is
y e a r continue, th e n u m b er of accident
and h ealth policyholders w ill to tal be
tw een n in eteen and tw e n ty m illion in
nu m b er by th e end of th e year.
Loss ratio s for th e first six m onths
of th e p re se n t y e a r show an increase
of 1 p er cent over th e first six m onths
of 1940.
L eading personal producers in Ju ly
included A lbert Rose an d C. R. F.
W ickenden of N ew Y ork City; G. F.
Fiske, Boston; J. C. F itzpatrick, H a r
risb urg, and A. N. Caines, W aterloo
rep resen tativ e of th e Des Moines agen
cy. H oey & E llison Life Agency, Inc.,
N ew York City, led all general agen
cies in paid business in July. O ther
agency leaders included H arrisburg,
P. B. Rice, general agent; Boston, H.
P. Cooley, general agent; Des Moines,
G. V. F ort, general agent, and K ansas
City, H. A. Hedges, general agent.
American Business
After Two Years of W ar
The end of tw o years of w ar in E u
rope finds th e economic situ atio n and
outlook in th e U nited States profound
ly altered, states th e G u aranty T ru st
Com pany of New York in discussing
A m erican business after tw o years of
w ar in th e c u rre n t issue of T h e G u a r
a n ty S u r v e y , its m onthly review of
business and financial conditions in
this co u n try and abroad.
“The changes are due p a rtly as a
MONARCH MUTUAL INSURANCE ASS'N
4Insurance With Savings'’
Paid Business Up
The larg est Ju ly volum e of paid
business since 1935 w as recorded last
m o n th by th e E q u itab le Life In s u r
ance Com pany of Iow a according to an
anno u n cem en t m ade by R ay E. F u ller,
su p e rin te n d e n t of agencies. T he field
force produced $4,622,310 of life in
su ran ce and an n u ities d u rin g th a t pe
riod, re p re se n tin g a gain over July,
1940, of $812,661, or 21.3 p er cent, and
increasin g th e gain in new paid busi
ness for th e y e a r to date to $3,142,047
or 10.7 p er cent. In su ran ce in force
now to tals m ore th a n $606,775,000, re p
resen tin g a gain of $8,894,000 for th e
first seven m o n th s of 1941, of w hich
$1,455,000 w as accounted for in July.
P A C IFIC M UTUAL’ S
5-Way Plan
Offers not only life and re
tirement protection, but also
Monarch . ..
Experience Rating
A Low Lapse Ratio
Continuous Policies
No Collection Expense
Nation-Wide Claim Service
Satisfied Customers
A U T O M O B IL E —
QUALIFIED AGEN CY
B rokerage
B u s in e s s
S o lic it e d
■■■
It c o m p le t e s the selling kit.
■ ■ ■
W e h ave a f e w a ttr a c tiv e
o p e n in g s fo r ban kers.
W rite
B Y R O N L. H A R T
G eneral A gent
Pacific Mutual Life Insurance Company
812 In s. E x ch a n g e B ld g .
D es M oines
F IR E
INQUIRIES INVITED
W . T. ELLIS, Secretory
im m e d i a t e d i s a b i lity p r o te c t io n
against sickness, accident, and
loss of sight or limbs.
Gives Agents
C ED A R RAPIDS, IO W A
S un L ife
OF
CANADA
Facilities, n o t restriction s
P riv ile ges, n ot p r o h ib iti o n s
E. W. SCHEDLER
General Agent
Occidental Life Insurance Co.
We have a few desirable
agency openings in Eastern
Iowa
Kahl Bldg.
Davenport, Iowa
■ ■ ■
C. F. B ow ker
W m. Voss
Jo h n M achover
E arl M inear
W R IT E
WM. R. WITHERS
Branch Manager
731 Insurance Exchange Bldg.
DES MOINES, IOWA
Northwestern Banker September Î9'fl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
50
resu lt of th e inevitable ind u strial, com
m ercial and financial dislocations of
w ar-tim e b u t even m ore largely to th e
v ast rea rm a m en t program upon w hich
th e n atio n suddenly em barked w hen it
becam e a p p a re n t th a t developm ents
abroad contained a g reater m enace to
A m erican secu rity and in te re sts th a n
had been recognized at th e beginning,”
T h e S u r v e y continues. “Inasm uch as
th e A m erican defense pro g ram did not
get u n d er w ay u n til after alm ost a y ear
of w ar, th e m ost radical changes in
this co u n try have occurred d u rin g the
last tw elve m onths. So sw eeping have
these changes been th a t th e U nited
States now finds itself in an economic
position not unlike th a t of a n atio n
actually at war.
“It is doubtful, how ever, w h e th e r
the co u n try is yet fully aw ake to th e
im plications of an unlim ited natio n al
em ergency. T here is still a disposition
in some q u a rte rs to reg ard th e defense
program not as a common task th a t
m ust be accom plished by unanim ous
effort and sacrifice but as an oppor
tu n ity to prom ote th e in terests of cer
tain groups at public expense. As
long as th is a ttitu d e persists, not only
w ill an equitable sh arin g of costs be
ren d ered im possible, b u t rearm am en t
itself w ill be im peded and its broad
economic consequences im m easurably
aggravated, to th e lasting h u rt of the
self-seeking groups, along w ith th e
re st of th e com m unity.
“A t p resen t th e country is n o t far
beyond th e com m encem ent of the im
m ense task th a t it has u ndertaken. The
stim ulating effects of em ergency de
m ands on productive facilities have
been felt, b u t m ost of th e m ajor strain s
are yet to appear. Priorities, price
ceilings and export curbs have been
im posed in num erous cases; b u t these
re stra in ts are of sm all significance in
com parison w ith th e sacrifices th a t
BUSY BANKERS BANK
ON THE
IOWA SERVICE OFFICE
NATIONAL FIRE GROUP
FOR THEIR
INSURANCE REQUIREMENTS
606 Old Colony Bldg., Des Moines
WILL H. HARRISON
A. A. INGRAM
W. K. HANKINSON
RALPH E. RINARD
WM. P. WINKLER
will have to be m ade in th e future.
“J u s t how great these sacrifices w ill
be and w here th ey w ill fall cannot yet
be foreseen. It is obvious, how ever,
th a t a co untry cannot ab ru p tly divert
a large share of its productive capacity
from peace-time to w ar-tim e channels
w ithout serious dam age to some p arts
of its in d u strial stru ctu re. And it is
equally clear th a t the energies of th e
people cannot be tu rn e d from th e pro
duction of the necessities and com forts
of life to th e production of im plem ents
of w ar w ithout a corresponding decline
in the stan d ard of living.
“The o u tstanding feature of the busi
ness situ atio n in the U nited States at
th e m om ent is an overw helm ing de
m and for goods of alm ost all kinds. In
the effort to supply these goods, in
du strial activity has risen to th e h ig h
est level on record. The seasonally ad
justed F ederal R eserve index of in
d u strial production for Ju ly stands at
a prelim in ary figure of 162 per cent of
the 1935-39 average, as against 121 a
year ago, 104 two years ago, and a 1929
peak of 114. C u rrent estim ates indi
cate th a t em ploym ent also has risen
to a new high record and th a t u nem
ploym ent has reached th e low est level
in eleven years.
“The dem and is by no m eans con
fined to w ar m aterials or to th e prod
ucts of th e heavy in d ustries b u t ex
tends to pro d u cers’ and consum ers’
goods in general, both durable and
non-durable. The figures seem to in
dicate not only th a t dem and is at a
record le v e l'b u t also th a t th ere is a
large am ount of buying in excess of
INSURANCE
O f A ll K in d s
TTY
SURETY
BONDS
State F arm M em bership P la n gives
you m ore in su ran ce fo r y o u r m oney.
P r o m p tly S ig n ed
A p e rp e tu a l policy has saved policy
h o ld ers over $40,000,000 since 1922.
▼
REAL
▼
T
ESTATE
R e lia b le S erv ice
O ver 1,000,000 cars have b e en in su red .
For five straight years the
C h a m p io n A g e n c y of the
B ank e rs L ife C o m p a n y in
▼T T
b o th C ash a n d V o lu me
O ver 7,000 agents in 40 states and
C anada.
O ver 200,000 claim s settled y early—
one every 2.6 m inutes.
State F arm M utual policies are non
assessable.
W rite for F R E E B ooklet for details.
RUHL & RUHL
Est. 1862
217 M ain St.
D A V E N PO R T , IO W A
Northwestern Banker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
W . K . N IE M A N N
State Farm Insurance Co’s.
A g en c y M a n a g e r
Iow a State Agency
805 V alley B ank Bldg.
Des M oines, Iowa
D es M o in es, Io w a
51
c u rre n t req u irem en ts. All groups from
th e m a n u fa c tu rer to th e u ltim ate con
sum er, influenced by expectations of
hig h er prices, priorities, sh ortages or
o th er factors, have been accum ulating
supplies of goods for fu tu re use. This
practice has u ndoubtedly co n trib u ted
to th e ap p earance of sh ortages of some
com m odities and has been one of th e
factors u n d erly in g recen t legislative
proposals w ith respect to p riorities,
price control and p ro p e rty seizure.
Outlook for Earnings
“W hile th e business situ atio n p re
sents som e of th e aspects of a ty pical
in d u stria l boom, in o th er im p o rta n t
resp ects boom conditions are conspicu
ously absent.
C orporate earnings,
w hile som ew hat larg er th is y e a r th a n
last, have by no m eans kep t pace w ith
the rise in in d u stria l output, as far as
can be judged by th e available data.
A nd th e g eneral level of stock prices,
w hich reflects th e com posite ju d g m en t
of in v esto rs reg ard in g th e outlook for
such earnings, is only slig h tly h ig h er
th a n a y ear ago and low er th a n tw o
years ago. In p art, of course, th is al
m ost to tal absence of response by in
vestors to h ig h er business activ ity is
due to broad u n certain ties arisin g from
doubts concerning th e d u ratio n and
outcom e of th e w a r and th e position
of A m erican business in th e post-w ar
world. B ut in part, also, it reflects con
ditions and prospects b earin g on th e
im m ediate outlook for business e a rn
ings.
“A n u m b er of factors com bine to
create th is u n c e rta in ty as to w h eth er
G reetings
to
M em bers o f the
IO W A B A N K E R S
A S S O C IA T IO N
b
m a
WILLIS
and
MOORE
G eneral In su ran ce
201 L ib erty Bldg., Des M oines
GENERAL AGENTS FOR
CONTINENTAL
CASUALTY COMPANY
th e high ra te of in d u strial activity will
find any clear reflection in th e level
of business profits. In th e first place,
it seem s clear th a t m any branches of
business, far from profiting by the
em ergency, w ill face increasingly dif
ficult conditions ow ing to shortages of
m aterials and labor and to forced c u r
tailm en t of dem and. In th e second
place, business as a whole, in defense
as w ell as non-defense lines, has ex
perienced, and w ill probably exper
ience in increasing degree as tim e goes
on, risin g costs due to hig h er w ages
and h ig h er prices of farm products,
im ported com m odities and raw m ate
rials in general. In th e th ird place,
excess profits taxes and o ther direct
levies on business en terp rises w ill go
far to w ard w iping out any additional
earnings th a t m ight norm ally resu lt
from th e em ergency dem and for th e ir
products. It is an avow ed govern
m ental aim th a t th e national em er
gency shall not becom e a source of
priv ate enrichm ent. As far as business
is concerned, th is aim is being p u r
sued w ith a thoroughness th a t leaves
little room for doubt as to its broad
realization.
Financial Changes
“In the field of finance as w ell as of
industry, th e w ar period has b ro u g h t
im p o rtan t changes, although here like
wise th e effects experienced th u s far
appear sm all in com parison w ith those
th a t are likely to appear in th e future.
D uring th e g reater p a rt of th e w ar
period to date, th e large-scale move-
HOME MUTUALINSURANCE COMPANY OF IOWA, « £ ,
F I N A N C I A L
S T A T E M E N T
A s of J a n u a ry 1, 1941
ASS ET' S
U . S. T r e a su r y B o n d s ........................................................................................... $451,972.23
I o w a R oad & I m p r o v em en t B o n d s ................................................................ 455,031.70
$
R ea l E s t a t e .........................................................................................................................................
C ash in B a n k s ....................................................................................................................................
C ash in A g e n ts H a n d s ..................................................................................................................
N o n -le d g e r A s s e t s ........................................................................................................................
F u rn itu re , F ix tu r e s and
A u t o m o b ile s ..............................................................................
907,003.93
1,008.95
121,366.61
138,080.12
42,200.20
12,833.44
$1,222,493.25
LIA B IL IT IE S
L o s s e s in P r o c e s s o f A d ju s tin g — S c h e d u le “ O ” ...................................$102,117.70
E s tim a te d E x p e n se o f A d j u s t in g .........................................................
18,845.80
A s s e t s N o t A d m it t e d ............................................................................................. 42,085.11
R e se r v e fo r T a x e s and E x p e n s e s .....................................................................
9,802.83
$
172,851.44
U n e a rn ed P r em iu m R e s e r v e ................................................................................$454,928.75
S u rp lu s to P o l i c y h o l d e r s . ................................................................................... 594,713.06 $1,049,641.81
$1,222,493.25
H . J. R O W E , P re s id e n t
Special Agents
C. D. Wherry
A C E R O W E , S e c re ta ry
Greetings
to
I o w a Bankers
R. S. Ingham
K. L. Lilja
FRO M TH E
T. R. McDonald
S E N T IN E L
H. A. Karr
Insurance Company
•
Hartford Fire Insurance Co.
Citizens Insurance Co.
a
u
■
Accident, Accident and Health,
and Hospitalization Policies
■ ■ ■
401 Old Colony Bldg.
504% Grand Ave.
DES MOINES
Des Moines
Northwestern Banker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
52
m en t of gold to th is co u n try continued
at an u ndim inished rate, adding fu rth
er to th e huge deposits and sw ollen
Policyholders Mutual
Casualty Company
Legal R eserve— Maximum Se r v ic e
Home Office: W est L iberty, Io w a
B u sin ess Office: Des M oines, Io w a
•
Full Coverage Automobile
Accident and Health
A g e n c y I n q u irie s In v i t e d
Jio w
&
it G a i t
Our policy provides a maximum
assessment of 2*/2% in Zones
One and Two—and 3*/2 % in
Zone Three (Western Iowa).
Hawkeye Mutual Hail
Insurance Association
Carver Bldg.
Fort Dodge, Iowa
excess reserves of A m erican banks.
Since th e beginning of th is year, how
ever, th e gold flow, w hile continuing
in th e sam e direction, has been on a
com paratively sm all scale. E ven before
th e d im inution of th e gold m ovem ent,
th e banks began to feel th e effects of
sw iftly expanding dem and for b u si
ness credit, due to th e req u irem en ts of
th e defense program and of increasing
in d u strial o u tp u t and com m ercial
tran sactio n s in general. T his rise in
business loans has been accom panied
by fu rth e r expansion in th e b an k s’
holdings of G overnm ent securities, a
n a tu ra l re su lt of th e G overnm ent’s
em ergency financial needs. These
changes have caused an irreg u lar de
cline in excess reserves since last
October and have reduced th ese re
serves to th e lowest level since Decem
ber, 1939.
“An o u tstan d in g factor in th e o ut
look for th e banks is th e prospect of a
fu rth e r large rise in holdings of Gov
ern m en t securities. An effort is being
m ade to encourage th e buying of
T re a su ry obligations by individual in
vestors; but, w hile th is effort has m et
w ith some success, th e resu lts th u s far
indicate th a t th e bulk of th e G overn
m e n t’s deficit m ust be financed
th ro u g h credit expansion. This o u t
look im plies a fu rth e r rise in b ank
deposits.
“An effort is also being m ade to
m eet as large a proporation as possible
of th e G overnm ent’s needs by m eans
of taxation. Taxes w ere increased
p ro m ptly a t th e s ta rt of th e re a rm a
m en t program ; a fu rth e r large rise is
pending, and G overnm ent officials are
now recom m ending additional in
creases in th e form of low er individual
incom e-tax exem ptions and h igher so
cial secu rity taxes. The readiness w ith
w hich th e people are accepting th e
prospects of unprecedented ta x levels
is an encouraging indication of th e
general recognition th a t burdensom e
tax atio n offers th e only altern ativ e to
th e grave financial disorders th a t m ili
ta ry em ergencies com m only entail.”
W age Profiteering
T he various railw ay labor unions
are now m aking dem ands on th e car
rie rs Which, if g ran ted in entirety,
w ould increase th e railro ad s’ o p erat
ing expense by th e incredible sum of
$900,000,000 a year.
A sim ple set of figures illu strates
ju s t w h at th is w ould m ean to the
tra v elers and shippers of th e U nited
States.
L ast year, to tal passenger fares col
lected by all th e A m erican railroads
aggregated $417,000,000—less th a n half
as m uch as th e unions are now de
m anding in h ig h er wages!
Northwestern Banker Septem ber 194-1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The railro ad s’ average revenue per
car of freig h t last y e ar w as $129.89.
So it w ould take nearly 7,000,000 car
loads of freig h t to pay for only th e
increased cost of the railw ay u n io n s’
dem ands. T h at is as m uch freig h t as
w as loaded in th e first tw o and onehalf m onths of th is y e a r—m onths
w hen, due to th e defense program ,
traffic w as a t u n u su ally high levels.
A nd here, finally, is th e m ost s ta rt
ling com parison of all: N ine-hundredm illion dollars is m ore th a n th e ra il
roads ever earned in any year after
paying expenses, taxes and o th er costs.
L ast year th e railro ad s earned a net
of b u t $200,000,000 — less th an oneq u a rte r of w h at th e unions are de
manding!
The m oral is clear. G ranting of
these astounding wage dem ands w ould
m ake it necessary to im m ensely in
crease railro ad charges for passenger
and freig h t service.
I t w ould d isru p t th e en tire economy
of th is country. It w ould be a long
step tow ard inflation. T he cold figures
tell th e story.
Bare Facts
A fra te rn ity had sent its cu rtain s to
be laundered. It w as th e second day
th a t th e house had stood unveiled.
One m orning th e follow ing note a r
rived from th e sorority across the
street: “D ear Sirs: May we suggest
th a t you procure cu rtain s for w in
dows. W e do not care for a course in
anatom y.” T he girls received th e fol
low ing reply: “D ear Girls: The course
is optional.”
A C o m p le te
K it o f 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.
□
Attractive o p e n i n g s f o r b a n k
ers
in s m a l l e r c o m m u n i t i e s
□
Equitable Life Insurance
Company of Iowa
GRADY V. FORT
General Agent
Des Moines, Iowa
53
The Month’s Market Maneuvers
A u g u s t , 1941 —
R o o s e v e lt
and
C hurchill m eet in
m id-A tlantic — the
R ussians continue
to delay G e r m a n
a d v a n c e s — Con
gress, hy one vote,
exten d s the draft
term an additional
JA M E S H. CLARKE
year and a half.
The “dog d ays” of A u gu st w ere not
lackin g for n ew s, but the head lin es
had little effect on the m arkets. E arn
in gs reports issued during the m onth
w ere good, hut sh ortages of m aterials
for sm all m anufacturers w ere b egin
n in g to develop. Tax n ew s Avas discouraging, hut d efen se production w as
encouraging. A s the G erm ans slow ly
approached L eningrad, a Russo-British in vasion of Iran w as launched.
T his balancing of good n ew s w ith bad
served to keep m arkets in active and
little changed during the m onth. L et’s
look at the figures.
As th e m o n t h o p e n e d , th e D o w -J o n e s
a v e r a g e o f in d u s t r ia l s to c k p r ic e s s to o d
a t 128.79. A t th e tim e o f th is w r itin g ,
n o o n o f A u g u s t 26, t h e y a re a p p r o x i
m a te l y 126.46. T h is r e p r e s e n ts a d e
c lin e o f r o u g h ly 2.33 p o in ts o n th e a v
era g es. T h e in c r e a s e d v o l u m e e n jo y e d
b y b r o k e r s d u r in g J u l y d r ie d u p , a n d
o n o n ly fiv e d a y s — a n d th o s e w e r e d u r
in g th e e a r ly p a r t o f th is m o n t h — w a s
th e v o l u m e in e x c e s s o f o n e -h a lf m i l
lio n s h a r e s . O n o n ly tw o d a y s d u r in g
th e m o n t h w a s th e n e t c h a n g e in th e
a v e r a g e s in e x c e s s o f a f u l l p o in t a n d
th o s e w e r e d e c lin e s o f 1.08 a n d 1.04.
I n e a c h case, th e v o l u m e o f tr a d in g o n
th e s e d a y s w a s u n d e r f o u r h u n d r e d
th o u s a n d s h a r e s . N o t in c lu d in g to d a y ,
th e r e h a v e b e e n tw e n ty - o n e d a y s o f
tr a d in g — g a in s w e r e s lio iv n in fiv e
d a y s a n d lo ss e s o n s i x t e e n d a y s . E l e v
e n o f th e d e c lin e s w e r e m a d e th e fir s t
e le v e n d a y s o f th e m o n th . D u r in g th e
r e m a in in g te n d a y s , th e m a r k e t g a in e d
a n d d e c lin e d a n e q u a l n u m b e r o f tim e s
a n d th e a v e r a g e s s h o w e d a n e t g a in
o f 0.05. A p p a r e n t l y , th e s to c k m a r k e t
r e q u ir e s a jo lt m o r e s e r io u s th a n th e
n e w s w h i c h A u g u s t h a s p r o v id e d to
m o v e i t o u t o f th e s e d o ld r u m s .
As we m entioned last m onth, ta lk of
inflation is becom ing m ore p rev alen t
and T re a su ry deficits m ore sizeable.
It is due to th ese tw o factors or to a
g eneral a p a th y am ong bond b uyers
th a t a w eakness in th e g o v ern m en t
Prepared for
The
N orthwestern
Banker
By Jam es H . C larke
Assistant Vice President
American National Bank & Trust Co.
C hic ago
& Ohio E q uipm en ts 1 % per cen t due
serially from 1942 through 1951 at
prices ran gin g from .25 basis to 1.90
basis; $20,000,000 A tchison, Topeka &
Santa F e E q uipm en ts 1% per cen t due
serially from 1942 through 1951 nriced
from .25 to 1.875; and $25,000,000 Stand
ard Oil of C alifornia 2% per cent of
1900 at 102 Vz to yield 2.01 w ith
$15,000,000 Serial N otes due from 1940
through 1955 at 99% w ith coupons
from 1.05 to 2.20. Tom orrow an offer
ing of $30,000,000 W isconsin P ow er &
L ight 3!4 per cent due A ugust, 1971,
w ill be m ade at a price of 100% to yield
2.91. A ssu m in g a b uyin g in terest on
the part of the insurance com panies,
th is issu e should m ove. N ot m uch ap
pears on the S.E.C. calendar for re
lease in th e near future excep t for a
sm all offering of $2,125,000 F irst Mort
gage 414 per cent of 1900 of the N ew
York & R ichm ond Gas Com pany w hich
is expected som e tim e th is w eek.
bond m ark et can be attrib u ted . As in
th e stock m arket, the volum e of tra d
ing in g overnm ent bonds w as light
d u rin g A ugust. P rices w ere lower.
The T reasu ry 2 3A s o f 1965/60 w ere
111 21/32 bid at th e close of business
Ju ly 30, and as of last night, A ugust
25, th ey stood at 111 1/32, a decline of
20/32. The 2%s of 1963/58 declined
26/32 d u ring the sam e period. This
w ould indicate a decline of ap proxi
m ately three-fourths of a point on all
of th e in term ediate and long-term is
sues. The T re a su ry ’s new T ax Notes
m ade th e ir initial appearance in banks
and post offices du rin g th e m onth, and
it is hoped the volum e of sales of these
N otes and the th ree series of Defense
Savings Bonds w ill tend to hold dow n
th e size of new governm ent open m a r
k e t borrow ings. D uring th e m onth,
th e sale of approxim ately tw enty-six
and a half m illion F ederal In term ed i
ate Credit B ank D ebentures w as the
only offering m ade by th e governm ent.
It is g enerally expected th a t the m onth
of Septem ber w ill b rin g a new issue
to refu n d the $204,000,000 m atu rin g
D ecem ber 114 p er cent T reasu ry Notes
—w ith some possibility of a cash bor
row ing at th e sam e tim e.
S e c u r it y m a r k e ts w e r e n o t a lo n e in
th e ir r e fu s a l to be a r o u s e d b y d e v e lo p
m e n t s in th e n e w s . Y e s te r d a y , P r e s i
d e n t R o o s e v e lt v e to e d th e C o n g r e s s io n
al p r o p o s a l to fr e e z e p r e s e n t q u a n titie s
o f w h e a t a n d c o tto n n o w h e ld b y th e
g o v e r n m e n t. T h e p r ic e s o f th e s e c o m
m o d itie s s h o w e d n o w illin g n e s s to
w e a k e n , a n d th o s e m a r k e ts
h e ld
s te a d y . B y r e fu s in g to p e r m i t th e s e
s to r e s o f w h e a t a n d c o tto n to be w i t h
h e ld fr o m th e m a r k e t a n d th e r e b y
ra is e th e p r ic e o f e x is t in g s u p p lie s , th e
P r e s id e n t h a s s h o w n a d e s ir e to h o ld
d o w n th e s h a r p r is e in a g r ic u ltu r a l
p r ic e s . P e r h a p s th is is a fo r e -r u n n e r
o f o th e r m o v e s to c h e c k a n y in fla tio n
a r y r is e s in th e g e n e r a l p r ic e le v e l.
E q u i t y b u y e r s w ill do w e ll to w a tc h
g o v e r n m e n t a c tio n a lo n g th e s e lin e s.
The m unicipal m arket follow ed the
lead of its sister m arkets w ith prices
holding firm but volum e of trading
dw ind lin g. C om paratively few n ew
offerings w ere m ade during the m onth,
and at th is w ritin g, there are no large
blocks of u nsold bonds over-hanging
the m arket.
H igh-grade corporate
bonds w ere unchanged, but a slig h t
w eak n ess w as reflected in the secondgrade corporate list — p a r t i c u l a r l y
am ong the railroads. Offerings of n ew
corporate issu es im proved som ew h at
over July, but n ew issu es w ere still
few and far b etw een . D uring the
m onth the fo llo w in g issu es m ade th eir
appearance and in m ost cases w ere
w ell received. $4,300,000 C hesapeake
As we rep orted here last m onth, the
trem endous out-pouring of defense or
ders continues at flood levels. New
p rio rities appear daily, and th e pinch
of m aterials steadily grow s m ore seri
ous. W holesale and retail prices are
continuing th e ir upw ard m arch, and
no early change in the tre n d is an tici
pated. B uyers of stocks m u st be care
ful in th e ir selections. The boom is
not all encom passing. T he changeovers th a t m u st be m ade in any n o n
defense p lan ts m ay take tim e. Taxes
w ill h it hard. B ut w ith it all, if stock
prices in London can advance in the
face of taxes, controls and w ar risks
th a t exist over there, a sim ilar action
m ay develop here.
Northwestern Banker September 1911
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
54
All Set for Iowa
Investment Bankers
Field Day
P lans and arra n g e m en ts are now
com plete for th e A nnual F ield Day of
the Iow a In v e stm e n t B ankers Asso
ciation to be held a t th e W akonda
C ountry Club in Des Moines th e a fte r
noon and evening of W ednesday, Sep
tem ber 10th, according to co-chairm en
on th e com m ittee, W infield Jackley
and George Peterson.
As has been custom ary, th e affair
w ill s ta rt off w ith a luncheon served at
the club, followed by v arious outdoor
sports, chiefly golf, alth o u g h ten n is
and horeshoes and o th er diversions
are available for those w ho wish.
W h at goes on indoors w hile th e out
door sports are in progress w ill be a
m a tte r of individual preference, since
in v estm en t ban k ers have a w ay of
providing th e ir own e n tertain m en t
along w ell established financial lines.
Of course, th ere w ill be a banquet
in th e evening, w ith aw arding of golf
prizes, attendance prizes, and some di
v ersion in th e w ay of additional e n te r
tainm ent. T his la tte r appears to have
some secrecy attach ed to it, since your
re p o rte r w as unable to get F ra n k
W arden, chairm an of th e e n te rta in
m en t com m ittee, to divulge any of the
p articu lars. B ut it w ill be good, you
can depend on th at, and, of course,
you w ill be glad to know th a t A rth u r
B rayton w ill be m aster of cerem onies.
E verybody rem em bers th e g rand job
he did last y ear—listening to A rt alone
is w o rth th e price of yo u r adm ission.
The evening of fun w ill close w ith the
big sw eepstakes event — th a t elusive
pastim e w hich brings joy to some b u t
a lot of headaches to others. May
yours be all th e joy.
As previously announced, th is Field
Day w ill be held on the closing day of
the an n u al m eeting of th e Iow a B ank
ers A ssociation — in v estm en t ban k ers
go directly from th e last b an k ers ses
sion to th e W akonda Club w here lunch
w ill be w aiting for them .
Outlook for Interest Rates
On Government Bonds
GENERAL
V
MOTORS
ACCEPTANCE
CORPORATION
T
is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
M otors Corporation and its world-wide affiliates:
CADILLAC,
BUICK,
OLDSMOBILE,
PONTIAC,
CHEVROLET
automobiles; fr ig id a ir e appliances for refrigeration and
air conditioning; DELCO lighting, power and heating
equipment; GMC trucks; BEDFORD, v a u x h a l l and other
foreign made automotive vehicles.
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
are available, in limited amounts,
upon request.
EXECUTIVE OFFICE
NEW YORK
Northwestern Banker Septem ber 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
BRANCHES
IN PRINCIPAL CITIES
Speaking recently before W est V ir
ginia bankers, F. T. K ennedy, C. J.
D evine & Company, New York, said in
part:
“The fu tu re course of in te re st rates
and th e U nited States G overnm ent
bond m a rk e t is a com plex problem , b u t
for sim plicity’s sake allow me, if you
will, to analyze the problem by broad
ly dividing it into th ree prospects:
“F i r s t P r o s p e c t. The course of in te r
est rates, should th e funds to m eet our
trem endously increasing defense ex
pen d itu res be raised in th e usual, socalled orthodox m anner, by w hich
com m ercial banks absorb the m ajor
portion of new issues. In th is case I
shall a ttem p t to show th a t th e dem and
for funds, even w hen the sm allest n a
tional defense expenditure estim ates
are used, w ill be so g reat th a t the
p resen t existing excess reserves w ould
be alm ost en tirely elim inated.
“S e c o n d P r o s p e c t. T he course of in
te re st rates, should th is “orthodox”
m an n er of financing be modified and
supplem ented by fiscal pow ers held
by th e G overnm ent. In th is case I
shall atte m p t to show th a t in terest
rates could theoretically decline to the
v anishing point.
“T h ir d P r o s p e c t. T he course of in
te re st rates, should these new expendi
tu res be raised th e h ard w ay—shall I
say the politically un p o p u lar w ay—the
w ay so adm irably suggested by M essrs.
Eccles and H enderson. In th is case
I shall try to show th a t certain disloca
tions will, undoubtedly, occur in our
U nited States G overnm ent bond m ar
k et w hich m ight conceivably resu lt
in a p erm an en t level of slightly higher
in terest ra te s and, of course, necessa
rily low er G overnm ent bond prices.
“W e m u st continue to appraise and
reap p raise th e outlook. It seem s to
me a sho rtsig h ted policy on th e p a rt
of banks to try to h it th e ‘jack p o t’.
The incom e loss caused by th e lapse of
tim e du rin g w hich ban k ers m aintain
55
an u n n ecessarily large cash position,
is expensive in su ran ce ag ain st a m od
erate change in in te re st rates. In
m any cases I have seen b an k s sell
bonds at w h a t w ould ap p ear to be an
advantageous tim e, have seen th e m a r
k et sell off b u t n o t quite enough to
satisfy th e seller, an d th e n grad u ally
w ork back to his original sales level.
T he less nim ble b a n k e r w ho had not
sold bonds at th a t tim e found him self
b e tte r off th a n his shrew d friend. The
an sw er is, of course, if you do sell
bonds, don’t go aw ay from th e office
and forget about it. Stay as close to
th e m a rk e t as possible and don’t feel
relieved u n til you have bou g h t them
back again.”
key portable adding m achine w ith di
rect subtraction.
T he new 10-key m odel w ill be iden
tical in size, featu res and price w ith
the fam ous full keyboard su b tracto r
w hich w as introduced by th e com
p any last fall. It em bodies rep eat sub
traction, autom atic p u n ctu atio n of
item s, autom atic double spacing a fter
to tals are taken, and a convenient
au to graphic w ritin g table for pencil
notations on th e adding tape. It can
be used for com puting elapsed tim e
for payroll w ork as req u ired u n d er
p re se n t law s and num erous o th er
present-day figuring requirem ents.
T he 10-key w ill come in tw o models.
One has a listing capacity of six col
um ns w ith a to taling capacity of
seven up th ro u g h 99,999.99 and sells
at $79.50. A nother m odel lists eight
colum ns and totals nine up th ro u g h
9,999,999.99 and sells at $99.50.
W orking p a rts are reduced by al
m ost 50 p er cent in num ber and trav el
distance of these p a rts has likew ise
been reduced to m inim ize w ear in op
eration. W ith only ten keys to m a
nipulate, th e operator is enabled to
keep eyes on th e w ork, th u s increas
ing speed and accuracy.
B eautifully designed, com pact and
easy to c a rry to th e w o rk w here
needed, th e 10-key su b tracto r is ideally
suited to the figuring req u irem en ts of
the sm all as w ell as large business.
New Enlarged Booklet
On Field Warehousing
A new edition of “F in an cin g th e
M odern W ay ”, is read y for d istrib u
tion. T he fo rm er edition h ad ex ten
sive circulation am ong banks, m a n u
fac tu re rs and d istrib u to rs. It served
as a textbook on field w arehousing,
not only in m any b anks b u t in colleges,
w ith com m ercial courses delving into
th e practical as w ell as th eo retical
aspects of finance. The new issue of
“ F in an cin g th e M odern W ay ” is
larg e r and m ore com plete, w ith over
35 illu stratio n s, m ostly of field warehouseable in v e n to ry of v ario u s kinds.
Am ong th e subjects covered in th e
48-page pocket size book are: L ist of
com m odities suitable for field w a re
housing; w h a t field w areh o u sin g is
and how it operates; typical illu stra
tions of field w arehousing; w h at
ban k ers and in d u stria lists say of th is
m odern aid to financing; ty pical ex
am ple of field w areh o u sin g cited in
th e experience of a p ack er of canned
goods; subsid iary w arehousing; a p ra c
tical exam ple of a field w arehousing
receipt; co u rt decisions on th e validity
of field w arehousing; U niform W are
house R eceipts Act; legal lim its on
w arehouse loans by states. Copy of
“F in an cin g th e M odern W ay ” w ill
gladly be m ailed to an y read er w ritin g
and m en tio n in g th is publication. If
m ore th a n one copy is desired to be
used for reference purposes by m ore
th a n one m em ber of a b an k or execu
tive staff of a com pany, re q u e st w ill
be gran ted , if m en tio n is m ade for
w hom th e copies are w anted. A ddress
D ouglas-G uardian W arehouse Corpo
ratio n , 100 W est M onroe Street, Chi
cago, Illinois.
Portable Machine
E. H. Rollins & Sons
Incorporated
Complete Investment Services
for Banks and Individuals
Bonds
PUBLIC U TILITY
RAILROAD
INDUSTRIAL
M UNICIPAL
H.
G
erald
N
E
ordberg
Resident Manager
1114 Northwestern Bank Bldg.
M inneapolis
NEW YORK
SAN FRANCISCO
dw ard
H.
K
ane
Iowa Representative
1010 American Trust Bldg.
Cedar Rapids
CHICAGO
PHILADELPHIA
BOSTON
LOS ANGELES
A nsw ering to d ay ’s dem and for g re a t
er speed an d efficiency in business and
in d u stry , V ictor A dding M achine Com
pany, Chicago, announces a new 10Northwestern Banker Septem ber t 9 k l
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
56
dust-proof, plastic case of sounddeadening co nstruction m akes for
quiet operation.
A
COMMERCIAL
INVESTMENT
TRUST
IN C O R P O R A T E D
Co m m er c ial I n v e st m e n t
T r u s t Incorporated, with
capital and surplus in excess
of $66,000,000, provides a
nation-wide sales finance
service through subsidiary
companies with a network
of branch offices throughout
the United States. This
service, in the main, consists
of p u rc h a s in g self-liqui
dating accounts, and ex
tends to automobile dealers,
household appliance dealers,
and to manufacturers and
dealers in many lines of in
dustrial, commercial and
professional equipment, in
cluding the heavy goods in
dustries.
C. I. T. offers its stand
ard notes for short term
accommodation in varying
a m o u n ts from $1,000 to
$100,000, in m aturities from
60 to 270 days and at cu r
ren t discount rates. T hese
notes are payable at any of
our 315 depositary banks
located in principal cities
throughout the country.
L a te st published, f i n a n c i a l
statement and list o f depositary
banks w ill be mailed upon request.
Opens New Bank
Chemical B ank & T ru st Company
announces th e election of Claudius D.
D uncan as vice p resident to be in
charge of its new b ran ch at 11 W est
51st Street. Mr. D uncan has p revious
ly been a ssistan t vice presid en t of the
b an k and m anager of its W aldorfA storia branch. H is associates a t the
new b ran ch w ill be W illiam J. D ris
coll as m anager, w ho is a t p resen t
m an ager of th e b a n k ’s b ran ch at 54th
S treet and F ifth A venue w hich w ill
be tra n sfe rre d to th e new location;
W illiam J. W ittm an, form erly m an a
ger of th e Colum bus Circle b ran ch and
now a ssistan t secretary of th e bank,
and Miss Caroline Olney as a ssistan t
m anager, w ho form erly held th e sam e
title at th e W aldorf-A storia branch.
F ra n k K. H ouston, p resident of
Chemical B ank & T ru st Company,
stated th a t th e new b ran ch at 11 W est
51st S treet w ould be form ally opened
for business on Tuesday, A ugust 12th.
T his w ill be one of th e m ost com plete
and a ttractiv e branches of any of the
b an k s in th e city.
Chemical B ank & T ru st Com pany
also announces th a t Clifford D. W oost
er, form erly a ssistan t m anager of the
Colum bus Circle B ranch, has been p ro
m oted to th e position of m anager of
th a t branch, and th a t Cyril M. W il
son has been given th e title of assist
a n t m anager of th e W aldorf-A storia
branch.
A . B. À . Speaker
Douglas Miller, au th o r of “You
C an’t Do B usiness W ith H itler,” and
form er Com m ercial A ttache of th e
U nited States E m bassy in B erlin, will
speak at th e ann u al convention of the
A m erican B ankers A ssociation to be
held in Chicago, Septem ber 29 to Octo
ber 2, it is announced by P. D. H ous
ton, A. B. A. president.
Mr. Miller, w hose book on th e com
m ercial aspects of th e H itler regim e
has rap id ly become one of the c u rre n t
best-sellers, w ill address th e m eeting
of th e A ssociation’s Public R elations
Council to be held on M onday night,
Septem ber 29. The subject of his ad
dress w ill be “P ropaganda M ethods
U nder a T o talitarian R egim e.”
Mr. Miller, w ho is now a m em ber of
th e faculty of the U niversity of Den
ver, w as in th e com m ercial foreign
service of th e governm ent for 18 years,
and w as Com m ercial A ttache at B er
lin from 1925 to 1939. Since his resig
nation in 1939 he has become one of
th e forem ost anti-Nazi w riters and lec
tu rers.
Mr. M iller’s Chicago address w ill
play a p a rt in carry in g out th e A. B.
A.’s dual convention them e of “N ation
al D efense” and “H em ispheric Solidar
ity ,” Mr. H ouston declared.
Sagacious
The teacher explained to th e class:
“W ords ending in ‘ous’ m ean Tull’, as
‘joyous’ m eans full of joy; ‘vigorous’
m eans full of vigor. Now, w ill som e
one give a n o th er exam ple of such
w ords?” One little boy raised his
hand. “P ious,” he answ ered.
Greetings to the
Iowa Bankers Association
C O M PL ET E
IN V E ST M E N T
SE R V IC E
VIETH, DUNCAN & WOOD
MUNICIPAL BONDS
A D D RESS
Treasurer,
Commercial Investment
Trust Incorporated
1 P a r k A v e . , N e w York, N . Y.
Northwestern Banker September 19hl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Walter E. Vieth
F. C. Duncan
L. A. Wood
A. M. MacLaughlin
A. N. Ellstrom
W Third Floor Davenport Bank Bldg.
^^ ^ P h one 2-5379 Teletype Dvpt. 31
Davenport, Iowa
57
Banking and Clowning
'(V
☆
SPECI ALI STS IN —
United States
Government
Securities
☆
C LOW NING and b an k in g are sel
dom associated (although som e
tim es b a n k ers are said to be fu n n y fel
low s), b u t th e re is one b a n k e r in
A m erica w ho tak es his clow ning se ri
ously, and th a t is G. W ylie Overly,
cashier of the M ount P leasan t State
B ank of M ount P leasant, P e n n sy l
vania, and p resid en t of th e W estm ore
land C ounty B an k ers A ssociation.
L ike m ost boys, Mr. O verly alw ays
w an ted to be a clow n in a circus, and
has achieved his am bition. Fall, w in
te r and sp rin g he is a b anker, b u t
he spends his vacation trav elin g as a
clow n w ith R ingling B ro th ers Circus,
and for a few w eeks each y e a r be
comes a kid again. Mr. O verly is pic
tu re d above as he recently greeted a
nu m ber of his b an k er friends in Chi
cago w ho saw him go th ro u g h his
antics in th e show.
O thers in th e picture, reading from
left to right, fro n t row, are C. J. A lger,
p resid en t Argo S tate Bank, Argo, Illi
nois; E. N. V an H orne, executive vice
president, A m erican N ational Bank,
Chicago; P au l T hom pson, treasu rer,
Guaranteed Issues
Federal Land Bank
Other Agency Issues
T e r r i t o r i a l Bonds
Municipal
Bonds
☆
B O N D S
Public U tility
In dustrial
R a ilro a d
C. J. DEVINE &CO.
M unicipal
48 W all Street, New York
The Field Building, C hicag o
A.C.A LLY N andc o
Boston • P hilad elp h ia • C incinnati
m pa n y
St. Louis • San Francisco
Incorporated
D ire ct W i r e s to all O f f ic e s
100 W est Monroe Street, Chicago
N ew York
R ep resen tatives:
M ilw aukee
W aterloo
Omaha
Des Moines
Boston
Cedar Rapids
☆
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
☆
58
Cudahy P acking Com pany, Chicago;
M aiworm , a ssistan t cashier, C ontinen
Jam es R. Leave!!, president, C ontinen
tal Illinois N ational Bank, Chicago;
Cannon F oster, M anufacturers T rust
Com pany, New York; and Mark A.
Brow n, vice president, H arris T ru st
& Savings Bank, Chicago.
tal Illinois N ational Bank, Chicago;
and W illiam P. D unn, Jr., vice p resi
dent, M anu factu rers T ru st Company,
New York, and directo r and tre a su re r
of R ingling Bros. B arn u m & Bailey
Circus.
Second row —C. R ay P h illip s, p resi Largest Volume
dent, La Salle N ational Bank, Chicago; • B altim ore, M aryland, Ju ly 31, 1941.
John Sexton, presid en t, Jo h n Sexton
Com m ercial C redit Com pany rep o rts
Company; P aul S. R ussell, vice p resi consolidated gross volum e for the six
dent, H a rris T ru s t & Savings B ank, m onths ended Ju n e 30, 1941, of $557,Chicago; K ent C. Childs, vice p resi 493,638.99, com pared w ith $416,712,dent, C ontinental Illinois N ational 085.69 for th e sam e period of 1940, and
Bank, Chicago; and John C. W right, w ith $986,040,355.87 for th e tw elve
vice p resid en t and cashier, A m erican m onths ended Ju n e 30, 1941. The
N ational B ank, Chicago.
gross volum e for the six and for the
T h ird row —L. E. M ickle, vice p resi tw elve m o n th s’ period ended Ju n e 30,
1941, w as the largest of any sim ilar
den t and tre a su re r, D om estic F inance
Corporation; A rthur Greene, president, periods in th e h isto ry of th e company.
Dom estic F in an ce C orporation; B. J.
N et incom e from operations avail
V. W. B
C
r e w e r
o
.
M u n ic ip a l B o n d s
The Des Moines Independent School District and the City of
Philadelphia are in the midst of debt reorganization
plans in the pattern of the successful South
Dakota level debt service plan.
F I R S T N A T - S O O LI NE B L D G
MINNEAPOLIS
W rite f o r o u r M o n th ly
M a rk e t L e tte r C o v e rin g
investment Management
TAXES
f or
T h e ir I m p a c t o n 1 9 4 1
E a rn in g s o f 1 2 2 C o m p a n i e s
In d iv id u a l, E sta te
Goodbody & Co.
and
M a in O ffice
M em bers
N e w Y ork S to ck E x c h a n g e
N e w Y ork Curb E x c h a n g e
C hicago 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 r in c ip a l
S tock an d C om m odity E x ch a n g es
R E C rummer &C ompany
IST NAT BANK BLDG
C H IC A G O ILLINOIS
Established 1897
In s titu tio n a l
MUNICIPAL
BONDS
A cco u n ts
□
E sta b lish ed 1891
1 1 5 B ro a d w a y , New Y o rk
able for consolidated in terest and dis
count charges for th e six m onths
ended Ju n e 30, 1941, after charging
off all losses and providing am ple re
serves for doubtful item s, w as $8,375,345.08, com pared w ith $6,025,341.09 for
the sam e period of 1940, and $15,550,039.47 for th e tw elve m onths ended
Ju n e 30, 1941.
A fter paym ent of $259,118.26 divi
dends for th e six m onths ended Ju n e
30, 1941, on th e 414 p er cent cum ula
tive convertible p referred stock out
standing, th ere rem ained n et incom e
of $4,108,397.50, or $2.23 per share
($2.50 p er sh are based upon ra te s of
F ed eral and C anadian incom e taxes
in 1940), applicable to the common
stock, including scrip, com pared w ith
$3,686,495.92, or $2.00 per share, for
th e sam e period of 1940, and $8,214,572.89, or $4.45 p er share, for th e
tw elve m onths ended Ju n e 30, 1941.
N et incom e for th e six m onths ended
Ju n e 30, 1941, is afte r deducting m i
n o rity in te re sts’ portion and provid
ing reserve for F ed eral incom e taxes
up to 30 p er cent u n d er th e proposed
new law instead of th e p resen t 24 per
cent rate; capital stock taxes at $1.25
instead of th e p resen t ra te of $1.10
p er thousand dollars of declared cap
ital valuation; provision for all other
taxes; and afte r additions to reserves
for contingencies. No provision has
been m ade for F ederal excess profits
tax as th e com pany is not liable for
such tax u n d er the presen t exem p
tions or any know n provisions of pro
posed am endm ents.
R eserves for deferred incom e and
OMAHA O FFICE
508 Insurance Building
M. T. C r u m m e r , Mgr.
D e s M o in e s O ffice
□
L A V E R N E M. B A R L O W
R esident M anager
204
F L E M IN G B U IL D IN G
T e l. 4 -5 1 2 1
*1. C. liny art
form erly
Insurance Exchange Building
Babcock, Rushton & Co.
Des Moines, Iowa
Northwestern Banker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
DES MOINES OFFICE
314 Equitable Bldg.
W a l t e r P. D a v i s , Mgr.
59
u n earn ed charges; losses and co n tin
gencies; u n earn ed prem ium s of in s u r
ance subsidiaries; and C anadian E x
change fluctuations, increased to $27,734,187.12 on Ju n e 30, 1941, from $21,039,877.68 on D ecem ber 31, 1940, and
$16,709,343.07 on Ju n e 30, 1940.
Takes Over Corporation
Mr. Ju stice B row er of th e Suprem e
Court of New York, w hich has ju ris
diction in th e m atter, has approved
an ag reem en t m ade by S u p erin ten d en t
of In su ran ce L ouis H. P ink, w hereby
M an u factu rers T ru s t Com pany w ill
tak e over by m erg er th e m ortgage
servicing co n tracts and tru ste e sh ip s
now held by the M ortgage C orporation
of N ew York, th e en tire capital stock
of w hich is held by th e su p e rin te n d
ent.. C onsum m ation of th e m erger
now req u ires th e approval of th e re
spective boards of directors, consent
of th e stockholders of each co rpora
tion, and th e approval of th e S up erin
te n d e n t of In su ran ce and th e S uper
in te n d e n t of B anks.
As of Ju n e 30, 1941, th e M ortgage
C orporation w as acting as servicing
agent or tru ste e u n d e r co u rt ap p o in t
m en t covering m ortgages aggregating
m ore th a n $150,000,000. M anufacturers
T ru st Com pany is already h andling
a considerable volum e of m ortgage
servicing co n tracts and tru ste e sh ip s
and is th erefo re w ell equipped, not
only to tak e over th e additional vol
um e resu ltin g from th e proposed
m erger, b u t to increase the business.
F o r a n u m b er of y ears th e b u siness
of th e M ortgage C orporation has in
cluded th e servicing of m ortgages for
savings banks, in su ran ce com panies,
and o th er investors. Its field of oper
ations has extended th ro u g h o u t th e
states of N ew York, N ew Jersey, an d
th e New E n g lan d states. The com
bined servicing business and tru s te e
ships w hich w ould re su lt in th e m erg
ing of th e tw o com panies w ill place
th e M an u factu rers T ru st Com pany in
th e fro n t ra n k s of those organizations
hand lin g th is ty p e of business.
P e te r E. B ennett, p resid en t of th e
M ortgage C orporation of New York,
w ill becom e affiliated w ith th e M anu
fa c tu re rs T ru s t Com pany as vice p re si
den t w h en th e m erg er goes into effect.
Loan B ank d istrict of th e co untry en
joyed substan tial rates of decline in
foreclosures, th e m ost favorable percentages are accounted for by th e New
E ngland d istrict w ith a drop of 32.5
•per cent; th e Indianapolis B ank region
(Indiana and M ichigan) dow n 27.4 per
cent; and th e L ittle Rock district, em
bracing A rkansas, Louisiana, M issis
sippi, New Mexico and Texas, w ith a
decline of 30.7 per cent. Only ten
scattered states show ed increased fore
closure activity.
F u rth e r indication of im provem ent
in the foreclosure situ atio n generally
is pointed out in th e percentage of
decline by various sizes of communi-
—18 per cent less th a n those d uring
th e Jan u ary -Ju n e period of 1940, and
75 p er cent un d er those of th e average
m onth of 1933.
The m ost recent sh arp decline in
th e num ber of foreclosures, according
to the b o ard ’s Division of R esearch
and Statistics, has resulted largely
from conditions in defense areas—
acute housing shortages an d increased
incomes. The 21,044 foreclosure cases
in these com m unities re p re se n t a 20
per cent drop from th e corresponding
period of 1940, for instance, w hereas
non-defense area cases declined on an
average of b u t 12 p er cent.
W hile alm ost every F ed eral Home
FHA TITLE II LOANS
a
m
a
Iowa Banks W elcom ed
A s Originating Brokers
B
B
■
Insured Loans Purchased
At Prevailing Premium
fl
■
B
Mortgage Investm ent Corporation
An Approved FHA Mortgagee
1021 Fleming Bldg., Des Moines, Iowa
S h a w ,T 1McDermott
& Sparks
■
.... - U I
—
Investment- Securities
Suitable for Investm ent of Banks,
Institutions and T ru st Funds
Foreclosures Decline
U rb an real estate foreclosures con
tin u ed a steady dow nw ard tre n d w ith
th e first six-m onth period of 1941 es
tab lish in g a new low reco rd for th e
p ast 15 years, econom ists of th e F ed
eral H om e L oan B ank board rep o rted
today.
Such foreclosures for th is period by
all types of m ortgage lenders on n o n
farm p ro p e rty are estim ated a t 31,941
914 Liberty Bldg.
DES
Phone 3-6119
MOINES,
IOWA
Northwestern Banker September 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
60
ties w hich th e B ank b o ard ’s R esearch
and S tatistical D ivision has classified
by groups ran g in g from ru ra l counties
having “u n d er 5,000 non-farm dw ell
ings” w here foreclosures for th e first
six m o n th s of 1941 dropped 11 p er
cent, to m etro p o litan areas w ith “60,000 or m ore non-farm dw ellings”
w here th e decline w as 21 p er cent.
N on-urban Ju n e foreclosures n u m
bered 5,047, or a redu ctio n of 6 p er
cent from May; and 24 p er cent less
th a n those of June, 1940.
Heads Credit Department
W. L. H em ingw ay, p resid en t of the
M ercantile-Com m erce B ank and T ru st
Company, has announced th e resig n a
tion of E. Douglass Cam pbell as m an
ager of th e b a n k ’s credit departm ent,
and th e appo in tm en t of W illiam J.
C hapm an as m anager to succeed
Campbell. Cam pbell resigned his po-
O ver-C ounter Facilities
in A ll M arkets
P rim ary M arkets in Iowa
Securities
McGUIRE, WELCH & CO.
231 So. LaSalle
CHICAGO
Bankers Trust Bide.
DES MOINES
MUNICIPAL
BONDS
We Sp ecialize in
G e n e ra l M arket
M u n icip a l
S ecu ritie s
sition, w hich he had held since May,
1937, to take up his com m ission as a
captain on active du ty w ith th e Royal
C anadian A rtillery. He w ill rep o rt
M onday at Camp N iagara, O ntario.
C hapm an has been connected w ith
th e credit d ep artm en t of th e bank
since M arch, 1939. P rio r to th a t date
he w as associated w ith th e New York
office of Price, W aterhouse & Com
pany, public accountants. He is a
g rad u ate of D artm outh College, class
of 1935, and of the Amos T uck School,
D artm outh grad u ate school of business
ad m in istratio n in 1936.
Savings Program
Advertising
W hen m other reaches for th e m o rn
ing m ilk she w ill be rem inded of the
D efense Savings Program !
W hen fath er opens a package of
cigarettes he w ill be urged to buy
a D efense Savings Bond!
W hen th e children b rin g hom e a
loaf of bread from th e store th ey
w ill be rem inded of Defense Savings
Stam ps.
T his is how big business concerns
of th e co u n try have sta rte d to aid
th e G overnm ent in ad v ertisin g th e De
fense Savings Program .
W ard B aking Com pany of New
York, w ith d istrib u tin g p o i n t s
th ro u g h o u t the U nited States, has or
dered w rap p ers for one hun d red m il
lion loaves of bread on w hich th ere
is p rin ted an appeal to purchase De
fense Bonds and Stam ps.
Milk com panies d istrib u tin g m ilk in
J. J. K ELLY
COMPANY
IN C .
paper cartons are p rin tin g Defense
Savings m essages on the containers.
D airy Sealed, Inc., New York City,
one of th e com panies of the B orden
group, has a legend on eight m illion
cartons:
“F o r D efense buy U nited States De
fense Bonds and Stam ps.” Below ap
pears th e seal of the U. S. T reasury.
The m essage continues:
“Because yo u r m oney w ill be p u t to
w ork at once in th e N ational Defense
P rogram to p rotect th e freedom and
safety of th e U nited States. Your
m oney w ill be safe. The full faith
and credit of th e U nited States Gov
ern m en t is pledged for paym ent of
both principal and in terest on these
U nited States Savings Bonds.”
Domino C igarettes, m ade by L arus
& Bro. Co., Inc., of Richm ond, V irginia,
c arry a Defense Savings m essage on
fo rty m illion packages ju st placed on
the m arket. It reads:
“B uy U. S. D efense Bonds! $18.75
invested now brings you $25 in ten
years. H e re ’s y o u r chance to do your
p a rt for th e U. S. A. T rain your
children to save w ith Defense Sav
ings Stam ps. On sale at all U. S.
Post Offices—and at banks.”
Resources increased
Over th e fiscal y ear ending last
Ju n e 30, in su red savings and loan
associations increased th e ir resources
by $450,000,000, the F ederal Loan In
surance C orporation reported.
T his is a strik in g exam ple of th e
c u rre n t expansion of funds available
for financing sm all hom es in the
IO W A B A N K S
BUY
Iow a F H A T itle II
In su re d Loans
W e B u y a n d Sell
Io wa P o w e r & L ig h t Co.
BONDS
■ ■ ■
6 % a n d 7 % P r e f e r r e d S toc k
For O u r O w n A c c o u n t
•
WHEELOCK & CUMMINS
M U N ICIP A LS:
Public Utilities
■ ■ ■
Railroad
W rite fo r our C urrent L ist
■
E pperson & Co.
Equitable Building
Des Moines
Fleming Building
Phone 4-7159
DES MOINES
Northwestern Banker Septem ber 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FH A L oan D ealer
Industrial
Incorporated
200 Equitable Bldg.
Iow a's O ldest an d Largest
Des Moines
Iowa
61
e
U nited States, according to Oscar R.
K reutz, g eneral m an ag er of th e In
su ran ce Corporation.
“A lthough a portion of th is gain
comes from th e associations in su red
d u rin g th e year, about $386,000,000 re p
resen ts new savings flowing into th e
in stitu tio n s p reviously insured, in
creased public confidence in sp ired by
th is pro tectio n of savers being an im
p o rta n t factor.”
Mr. K reu tz said,
“P riv a te capital in these associations
rose by $407,779,000 d u rin g th e year,
to a to tal of $2,458,000,000.”
R esources of th e 2,310 in su red th rift
in stitu tio n s now total $3,160,000,000,
he reported. Illu stra tin g th e w ide
spread coverage of in su ran ce of ac
counts in savings and loan associa
tions he pointed out th a t associations
so safeguarding th e ir investors, up
to $5,000 each, are now o perating in
every state and in A laska, H aw aii and
th e D istrict of Columbia.
“Logically, as th e leading savings,
building and loan state of th e country,
Ohio leads b oth in n u m b er and com
bined assets of in su red units, w ith 241
such associations holding resources of
$526,000,000,” he said. “The 130 in
sured associations in C alifornia stan d
second w ith $276,000,000. Illinois is
th ird , h aving 197 in su red in stitu tio n s
w ith com bined assets of $245,000,000.
New Y ork ra n k s closely behind. In
each of sixteen o th er states, th e re
sources of in su red associations agg re
gate betw een $50,000,000 and $200,000,000.
D uring th e first half of 1941 th e
in su red associations m ade hom e loans
to talin g $420,623,000, an increase of 21
p er cent over th e figure for the com
parab le period in 1940. A recen t re
p o rt indicates th a t th e sh are capital
of these hom e lending associations is
grow ing at th e ra te of 1.8 p er cent a
m onth, an extrem ely high m a rk for
financial in stitu tio n s. As a fu rth e r
trib u te to th e confidence-building
pow er of th e in su ran ce p rotection for
savings, Mr. K reutz pointed out th a t
639 of th e in su red in stitu tio n s, oper
atin g u n d er F ed eral c h a rte r and w hich
w ere new ly organized since th e p as
sage of a C ongressional act of 1933,
have grow n to th e point w h ere th ey
now hold about $630,000,000 of assets.
Forty-one applican t associations re
ceived certificates of in su ran ce d u rin g
th e first half of 1941.
A t th e end of th e fiscal year, th e
F ed eral Savings and L oan In su ran ce
C orporation itself, created in 1934,
w ith an in itial capital of $100,000,000,
h ad to tal assets of $130,920,000. D ur
ing th e y e a r $6,320,280 w as tra n sfe rre d
from earn in g s to su rp lu s an d reserves,
b rin g in g these item s to $29,388,882.
N et losses over th e period am o u n t to
$546,468.
For a Fresh Start
STOP at a HOTEL
More than 5000 hotels on the continent and
in nearby territories, representing the seventh
largest industry, allied for service and progress.
AMERICAN
HOTEL
ASSOCIATION
Northwestern Banker September 1941
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Federal Reserve Bank of St. Louis
62
L IV E S T O C K
is
The Only Economical Market for Roughage
We are especially equipped and located to serve banks,
producers and feeders in financing livestock.
S to c k Y a r d s N a tio n a l B a n k o f S o u th O m a h a
OM AHA, N E B R A SK A
MEMBER
Northwestern Banker Septem ber 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION
63
NEBRASKA
NEWS
C A R L D . GANZ
P r e sid e n t
A lvo
Propose Junior Group
P roposed creation of a ju n io r o rgani
zation affiliated w ith th e N ebraska
B an k ers A ssociation w as discussed at
a m eeting of 20 cen tral N ebraska b a n k
ers and em ployes at th e H otel Yancey,
in G rand Islan d last m onth.
The m eeting, one of several p relim
in a ry contact affairs being held a t key
points about th e state, w as called by
W illiam H ughes, Omaha, secretary of
the association.
M em bership of th e proposed a u x
iliary u n it w ould consist of ju n io r offi
cers, tellers and o th er subordinate
bank em ployes. It has n o t been in d i
cated w h en an a tte m p t w ill be m ade to
actually create such a n organization.
New Cashier
H om er M ullen, new ly elected cash
ier of th e F irs t N ational B ank of
Scribner, arriv e d in S cribner from
Om aha last m o n th and began his offi
cial duties w ith th e in stitu tio n . Mr.
M ullen, w ho hails from O’Neill, has re
cently been w o rk in g for th e F ederal
Refinance C orporation, a position he
resigned to accept his new b an k job.
A ccepts New Position
Miss H elen M arr of F re m o n t e n te r
tain ed a few guests a t a d in n er re c e n t
ly a t h e r hom e for h e r niece, Miss
B etty M arr, of Omaha. Miss B etty
M arr left last m o n th to accept a posi
tion in San Francisco, Calfornia. She
has been em ployed a t th e F irs t N a
tion al B ank in O m aha for some tim e.
Moves Into New Quarters
The F irs t N ational B an k of F alls
City, of w hich George F roelich is th e
executive vice p resid en t and m anaging
head, m oved into th e ir ow n building
recently, w hich has been especially
equipped for th e ir needs.
A “house w a rm in g ” took place, w hich
w as atten d ed by b an k ers from Omaha,
Lincoln, St. Joseph, K ansas City, and
m any people from th e su rro u n d in g
tow ns.
V irtu ally e v ery th in g in th e b an k is
new except records and some of th e
WM. B. H U G H E S
S ecreta ry
Om aha
safety deposit boxes. In th e large,
com m odious m ain room are all new
fixtures. The m ain room has an as
p h a lt tile floor, and it is divided into
a lobby and office quarters.
"Open House" Held
The B runing S tate B ank held “open
h o u se” for its patro n s and friends last
m onth. T he occasion m ark ed fifty
y ears of continuous b anking service
to th a t section of N ebraska.
T he in terio r of th e b ank had re
cently undergone a com plete ren o v a
tion—a new p ain t job, Venetian blinds,
new linoleum , etc., and w as all ready
to receive visitors. Coincidentally, on
its 50th b irthday, th e B runing State
B ank increased its capital and su rp lu s
to $50,000.
New Bank Employe
Miss H azel Freeouf, w ho has been
atte n d in g a business school in Omaha,
has a position w ith th e Citizens State
B ank of D orchester.
know, Conley related, w h eth er the lo
cal banks w ere safe. Conley insisted
th ey w ere w hen a “second” m an came
into th e picture.
S tran g er No. 2 didn’t believe Con
ley’s talk and offered to bet Conley
$500 he couldn’t prove the banks w ere
safe.
The scene th en shifted to a tav ern
w here th e subject of safety and th e
bet w as considered. The w ager made,
S tran g er No. 2 w alked to th e ban k so
Conley could give him proof. Conley
w ith d rew $1,500 in one h u n d red dollar
bills and he and the “stra n g e r” re
tu rn e d to m eet the No. 1 m an, accord
ing to th e sto ry to police.
A fter a sh o rt report, No. 2 adm itted
he had lost after Conley laid the $1,500
on th e table.
F lash in g a roll w hich he said w as
$500, No. 2 p u t th e m oney together
w ith Conley’s $1,500 in a handkerchief,
tied it securely. He th en p u t it inside
Conley’s sh irt, saying “I t ’ll be safe
th ere and you w ill n ot lose it.”
A fter a few m ore w ords No. 2 de
parted, leaving No. 1 w ith Conley. The
“T exan” th e n said he w ould m eet Con
ley at th e b ank entrance. Conley
w aited for some tim e b u t his “friend
from T exas” didn’t appear. He de
cided to go hom e and it w as discovered
th a t th e h an dkerchief contained a roll
of paper napkins.
Plan to Simplify
Bank Forms
To sim plify for b ank custom ers the
m u ltitu d e of form s and procedure nec
essary in th e banking business has
been a sideline hobby for J. M. Soren
sen, executive vice presid en t of the
Enjoys Vacation Trip
S tephens N ational B ank of F rem ont.
C.
H. Dahl, a ssistan t cashier of the F o r a y ear and a half, he and other
F irs t N ational B ank of H ooper, has m em bers of a special A m erican B ank
recently been enjoying a tw o w eeks’ ers A ssociation c o m m i t t e e corre
vacation from his duties at th e bank. sponded on th e in tricate subject. T hey
Mr. Dahl and fam ily m ade a m otor held four m eetings, tw o of them in
trip to points in th e east, and w hile on the ABA office in N ew Y ork City.
th e ir trip m ade a visit to D etroit, Two m onths ago a detailed, all-em
w here Mrs. D ahl’s b ro th e r and fam bracing m anual containing th e ir sug
ily reside.
gestions and findings w as published.
Now th e job of selling A m erica’s
b an k ers on the plan to standardize
Omaha Man Defrauded
Jo h n E. Conley, 74, 2208 Douglas various banking form s and procedure
S treet, Omaha, is m inus $1,500 because rem ains ahead, and the opportunity
he tried to prove to tw o “stra n g e rs” w ill come Septem ber 30th w hen Sor
ensen and tw o other com m ittee m em
th a t m oney is safe in Omaha banks.
Conley, re tire d railro ad employe, r e bers com prise a round table confer
cently revealed his loss to D etective ence panel on th e subject at th e ABA’s
C aptain Tom R yan after holding it an n u al convention in Chicago.
A ppearing w ith Sorensen on th e
a secret a week.
He inform ed R yan th a t after draw panel w ill be D arrel G. E nsign, as
ing $115 from his b ank account for a sistan t cashier of the Com m onw eath
B ank of D etroit, and W illiam J. KinC alifornia trip he paused a t T w entieth
nam on, cashier of th e H un terd o n
and Douglas S treets to w ait for th e
traffic lights to change.
County N ational Bank, Flem ington,
A “T exan,” here “to settle an estate,” New Jersey. C hairm an of th e special
sta rted a conversation. He w anted to com m ittee, Louis Bishop, a ssistan t
Northwestern Banker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
64
• N E B R A S K A
vice p resid en t and cashier of th e StateP la n te rs B ank and T ru st Company,
Richm ond, V irginia, w ill be chief in
terlo cu to r for th e panel discussion.
O ther m em bers of th e com m ittee
w ho w orked out the m an u al are A. R.
Coleman, associate professor of ac
counting and statistics, W ashington
an d Lee U niversity, L exington, V ir
ginia, and L auder Hodges, executive
m anager, C alifornia B an k ers Associa
tion, San Francisco.
T he sim plified b an k in g form s and
procedure, if adopted, n atio n ally will
be of inestim able benefit to b ank cus
N E WS
tom ers, Sorensen explained. If a cus
to m e r’s check, cashed in a larg er city
w here check-canceling m achines are
used, is of standardized size and form,
it w ill be cleared sooner th a n if it
w ere of a different size and form, re
su ltin g in speedier service to th e cus
tom er.
T hat, Sorensen said, is only one ex
am ple of b e tte r service th a t stan d ard
ized m ethods w ould bring, declaring
th a t th e sim plified form s could be used
in all phases of banking.
R ecom m endations of th e com m ittee
are contained in th e m anual w hich
Charter No. 2 0 9
•
details size and form at of various b an k
ing papers, procedure of paper stock
and o ther data.
S orensen’s appearance at th e ABA
convention w ill not be his first. He
has tak en active p arts in th ree p re
vious national conventions.
Columbus Deposits Lower
Colum bus postal receipts w ere a
little h igher b u t b ank deposits and
clearings in Ju ly w ere low er th a n the
preceding m onth, th e m onthly barom
eter of th e Colum bus C ham ber of Com
m erce indicated.
P ostal receipts w ere larg er by $30.50
or a to tal of $4,345.88 in July. B ank
deposits dropped from $4,045,000 to
$3,966,720.23 in July, and b ank clear
ings w ent from $2,932,743.31 to $2,766,050.58.
State Convention
First National Bank
o f Omaha
The
Oldest National Bank
From Omaha West
Nationalized 1 863
O F F IC E R S
A. H.
T . L . D a v is ............................................. P r esid en t
O. en
Ht.
F . W . T h o m a s .................................................... V ic e P r esid
J . F . M cD e r m o t t ............................................ V ic e P r e sC.
id e H
n t.
C. D . S a u n d e r s ................................................. V ic e P r e sEid. eN
n t.
E. F.
J . T . S t e w a r t , I I I .V ic e P r e s , an d C ashier
J . F . D a v is ......................................................... V ic e P r e sHid. e nAt.
Ch i s h o l m ....................A ss is ta n t C ashier
E l l i o t t ........................ A ss is ta n t C ashier
V e b e r ............................ A ss is ta n t C ashier
S o l o m o n .......................A ssista n t C ashier
J e p s e n ...........................A ssista n t C ash ier
A r n s b e r g e r ............. A ssista n t C ashier
W . E . S p e a r ...................................T ru s t Officer
E . G. S o l o m o n ...........A ssista n t T ru st Officer
M em ber
F e d e ral R eserve System
Northwestern Banker September 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M em ber
F e d e ral D eposit In su ra n ce C orp o ratio n
A rrangem ents for th e program of
the N ebraska B ankers A ssociation con
vention on October 9th and 10th a t the
P axton H otel in Om aha are tak in g
shape.
H ow ard J. G ram lich, a N ebraska
m an w ho has progressed to Chicago
as secretary of th e A m erican S hort
h o rn B reeders A ssociation, w ill be a
guest. He has spoken before and is
th e type of speaker w ho is w elcom ed
back.
Leslie K. K u rry m akes a good talk
on th e w age-hour law and has con
sented to address N ebraska bankers.
He is vice p resident of th e M ercantile
Commerce B ank & T ru st Com pany of
St. Louis.
S trickland G illilan of W ashington is
a top flight hum orist, w ell posted on
W ashington affairs.
L. F. L ivingston, m anager of the
A g ricultural E xtension Division E. I.
D uPont de N em ours & Company, W il
m ington, D elaw are, w ill speak on the
value of research, and the in d u strial
use of a g ricu ltu ral raw m aterials, il
lu stra te d by exhibits.
W. G. P ow er of th e G eneral M otors
Sales C orporation, C hevrolet Division,
D etroit, w ill be an o th er guest, and
m em bers w ill enjoy his rem ark s and
gain some ideas about prom oting th e ir
institutions.
Bank President Dies
Adolph Shim onek, president of the
W ilber State Bank, W ilber, N ebraska,
died recently. Mr. Shim onek w as one
of the oldest h ard w are m erchants in
th e state of N ebraska and he has been
connected w ith th is b ank ever since
th e b an k w as organized twenty-five
y ears ago.
65
ca te d b ecau se M agee th is y e a r is a
n o n -co o p erato r.
M agee’s e le v a to r m a n fin ally ag re e d
to ta k e th e w h e a t, h o ld in g u p s e ttle
m e n t p e n d in g a n a g re e m e n t w ith th e
AAA.
D avid D avis, t r u s t officer of th e
O m ah a N a tio n a l B an k , w ith h is w ife,
th e ir c h ild re n , N a n c y a n d D avid, a n d
M rs. D a v is’ fa th e r, D r. W . H. W inn in g h a m of T re n to n , M isso u ri, r e c e n t
ly r e tu r n e d fro m tw o w e e k s of fish in g
a n d te n n is a t O sakis, M in n eso ta. T h e
w e a th e r w a s c h illy a n d th e fish h u n g ry
th e first w eek , so th e c a tc h of w a ll
ey ed p ik e w a s a big one. T h e second
w eek , h o w e v e r, th e fish w e re w a ry .
M r. D avis, h is so n a n d d a u g h te r, a re
le a d in g O m ah a T e n n is C lub p la y e rs.
F IR S T ste p to w a rd s u rm o u n tin g a n
O m aha c ity d e b t p e a k m a tu r ity in
1942-43 w as ta k e n re c e n tly b y th e city
council w h e n it c o n tra c te d to sell to
th re e O m aha b a n k s u p to $800,000 of
c ity w a r r a n ts b e a rin g 2 p e r c e n t in
te re s t.
P u rc h a s in g b a n k s a re th e F irst N a
tional, Omaha N ational a n d U nited
States N ational, w ith th e la tte r as jo in t
tru s te e .
H eld as in v e s tm e n ts in th e special
a sse ssm e n t sin k in g fu n d , th e w a r r a n ts
c a n n o t o th e rw ise be liq u id a te d a t th is
tim e, since fu n d s fo r re d e m p tio n a re
to com e fro m ta x lev ies of fu tu r e y e a rs.
B y sale to b a n k s, th e y w ill m ak e
a v a ila b le e n o u g h cash, to g e th e r w ith
a n .8 of a m ill in c re a se in d e b t serv ice
lev ies in 1942-43, to m e e t p e a k b o n d
m a tu ritie s a n d in te r e s t in th e special
a ss e s s m e n t sin k in g fu n d of $1,254,312
in 1942 a n d $418,104 in 1943.
T h e c ritic a l s itu a tio n in th e special
a s se ssm e n t s in k in g fu n d a rise s p rin c i
p a lly fro m a $1,055,000 deficit w h ich
m u s t be p a id o u t of g e n e ra l ta x incom e
in th e n e x t six y e a rs.
T h e c o n tra c t w ith th e b a n k s p ro
v id e s th a t n o n e of th e w a r r a n ts sh a ll
be tu r n e d o v e r to th e b a n k s p rio r to
1942, a n d th a t a n y incom e on w a r r a n ts
in excess of 2 p e r c e n t be c re d ite d b a c k
to th e city. T h e c ity m a y re p u rc h a s e
w a r r a n ts a t a n y tim e in blo ck s of $30,000 o r m u ltip le s th e re o f.
W ay land M agee, B e n n in g to n , N e
b ra sk a , fa rm e r w h o liv es w e s t of
O m aha, a n d one-tim e m e m b e r of th e
F e d e ra l R e se rv e B o a rd in W a sh in g to n ,
re c e n tly called th e A A A office to pro-
YO UR STATE BANKERS ASSO CIATIO N
O FFICIA L SA FE, V A U L T A N D
TIM ELOCK EXPERTS
F.
e.
D A VEN PO RT & CO.
te s t w h e n h e w a s to ld h e w o u ld h a v e
to h a v e a n A AA c a rd to sell th e r e
m a in d e r of h is la st y e a r ’s w h e a t to a n
Irv in g to n e le v a to r.
T h e re a so n he
d id n ’t th r e s h all h is w h e a t la st y e a r is
b ecau se h e d id n ’t h a v e e n o u g h sto ra g e
space.
B a n k e rs fro m Omaha, L in co ln , St.
J o se p h a n d K a n sa s C ity w e re am o n g
g u e sts w h e n th e F ir s t N a tio n a l B a n k
of F a lls C ity, N e b ra sk a , h e ld a h o u se
w a rm in g re c e n tly in n e w q u a rte rs
fo rm e rly o ccu p ied b y th e F a lls C ity
S ta te B an k .
H e p ro te s te d th a t th e w h e a t w a s
ra ise d la s t y e a r, b e fo re cro p c o n tro l
w a s vo ted . To re q u ire a c a rd fo r it,
h e believ ed , w o u ld be to m a k e th e law
re tro a c tiv e , w h ic h h e th o u g h t w as
illegal. T h e w h o le th in g w a s c o m p li
G u ests a t th e ho m e of Mr. and Mrs.
L eslie E. M artin a n d th e ir d a u g h te r,
M iss J e a n M a rtin , w e re M r. M a rtin ’s
m o th e r, M rs. M a rg a re t M. M a rtin of
C raw fo rd sv ille, In d ia n a , a n d h e r sis-
W E PU R C H A SE
W HEAT LO A N S
also
Offer our facilities in connection
with Livestock, Agricultural and
Commercial Financing.
Live Stock National Bank
Omaha
(Member Federal Deposit Insurance Corporation)
OMAHA
N o r th w e s te r n B a n k e r S e p te m b e r 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
66
•
te r, M rs. C. E. J o h n s to n of G reen v ille,
T exas, a n d M r. a n d M rs. H ira m J o h n
sto n a n d fa m ily of B lue R apids, K a n
sas. M r. M a rtin is p re s id e n t of th e
N e b ra sk a S av in g s a n d L o a n A ssocia
tio n of O m aha.
D rille rs h a v e co m p le te d sin k in g a
w ell in fro n t of th e L ivestock N ational
Bank a t th e c o rn e r of T w e n ty -fo u rth
a n d N stre e ts , a fte r re a c h in g 117 feet.
W a te r fro m th e w ell is b e in g u se d to
air-co n d itio n th e g ro u n d floor of th e
b a n k b u ild in g . W a te r a b o u t 56 d e
g re e s in te m p e r a tu r e com es fro m sa n d
d ep o sits s tru c k a t 95 feet.
NEBRASKA
NEWS
M e e k e r’s lodge in E ste s P a r k w as
th e d e s tin a tio n of a g ro u p of O m aha
g irls, in c lu d in g M iss D ella K o p p eru d ,
w h o m o to re d th e r e fo r a 10 d ay v a c a
tion. M iss K o p p e ru d is th e d a u g h te r
of A ndrew Kopperud, vice p re s id e n t
of th e F e d e ra l L a n d B a n k of O m aha.
W h ile on a fish in g tr ip in M o n tan a,
E llsw orth M oser, e x e c u tiv e v ice p re s i
d e n t of th e U n ite d S ta te s N a tio n a l
B a n k of O m aha, M rs. M oser a n d D r.
H e rm a n Jo h n s o n m ad e th e ir h e a d q u a r
te rs a t th e A lan r a n c h n e a r A u g u sta .
T h e r a n c h w a s re a c h e d o n ly a fte r a n
a u to trip , m o to r b o a t trip , a n d fin ally
Specialized Services
fo r
Correspondent Banks
•
a rid e b y w ag o n . M ail is d eliv ered
o n ly once e v e ry th r e e o r fo u r days.
M e tro p o lita n U tilitie s d is tric t of
O m aha, b y re c e n t b o a rd actio n , r e
d u ced its 1942 ta x lev y fo r fire h y d r a n t
se rv ic e fro m .6 to .5 of a m ill to h e lp
offset a n im p e n d in g in c re a se in th e
c ity of O m a h a ’s 1942 lev y fo r b o n d
re d e m p tio n .
L e a v in g re c e n tly fo r th e ir cab in a t
A le x a n d ria , M in n eso ta, w e re W allace
Spear, tr u s t officer of th e F ir s t N a tio n
al B a n k of O m aha, M rs. S p e a r a n d
th e ir d a u g h te rs, M iss B a rb a ra S p eer
a n d M iss S a ra S pear. M r. S p e a r’s fa m
ily p la n n e d to s ta y a t th e lak e u n til
school s ta rts .
S ix w e e k s on C ape Cod w e re Mr. and
Mrs. A. C. P otter’s v a c a tio n . M r. P o t
te r a n d son, T o n y , le ft b y au to m o b ile
a n d M rs. P o tte r a n d d a u g h te r, D iane,
w e n t b y tra in . M r. P o tte r is h e a d of
B u rn s, P o tte r & C om pany, in v e s tm e n t
b a n k e rs.
Officers a n d d ire c to rs of th e N e
b ra s k a S av in g s a n d L o a n A sso ciatio n
w e re re-elected a t th e a n n u a l sto c k
h o ld e rs ’ m e e tin g . L eslie E. M a rtin is
p re sid e n t; M elv in B ek in s, v ice p re s i
d en t; A n to n J. S te jsk a l, se c re ta ry ;
C h a rle s F . B rin k m a n , tr e a s u r e r a n d
c h a irm a n of th e b o ard .
I n th e v a u lts of a n O m ah a b a n k a re
tw o U n ite d S ta te s T r e a s u r y bills, one
fo r $1,000,000 a n d th e o th e r fo r $500,000, p ro p e rty of th e M e tro p o lita n U til
itie s D is tric t of O m aha.
T h e b ills a re b e lie v e d to be th e la rg
e st e v e r issu e d to O m ah a p u rc h a se rs.
T h e y a re in c lu d e d in a re c e n t p u r
ch ase b y th e u tilitie s d is tric t of tr e a s
u r y c e rtific ate s to ta lin g $1,902,000. T h e
a m o u n t re p re s e n ts a re in v e s tm e n t of
u tilitie s d is tric t fu n d s in a liq u id a tio n
m o v e to h e lp m e e t a w a te r b o n d issu e
to ta lin g $2,668,000, w h ic h m a tu re s a n d
is to be p a id D ecem b er 15th. T h e
tr e a s u r y b ills, p u rc h a s e d a t $99.99 p e r
$100, m a tu re O ctober 15th.
MANUFACTURERS
TRU ST COMPANY
Principal Office: 55 B R O A D S T R E E T , N E W Y O R K
67 C O M P L E T E B A N K I N G
O F F IC E S IN G R E A T E R N E W Y O R K
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
Fred W. Thom as, v ice p re s id e n t of
th e F ir s t N a tio n a l B a n k of O m aha, a c
co m p an ied b y h is m o th e r, M rs. W ag
n e r T h o m as, a n d h is niece, M iss M ar
ia n M agee, le ft re c e n tly b y au to m o b ile
fo r a v a c a tio n tr ip in th e w est. T h e y
v isite d frie n d s in O gden, U tah , b efo re
g o in g on to L a k e T ah o e, S an F r a n
cisco, a n d C arm el-by-the-Sea.
YOUR STATE BANKERS ASSOCIATIO N
O FFICIA L SAFE, V A U L T AN D
TIMELOCK EXPERTS
F. E. DA VEN PO RT & CO.
OM AHA
N o r th w e s te r n B a n k e r S e p te m b e r Í 9 H
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
67
N A T IO N A L
b a n k s w h ic h m a k e
lo an s a t a r a te of in te r e s t g r e a t
e r th a n 9 p e r c e n t m u s t o b ta in a sm all
lo an licen se u n d e r th e s ta te ’s n ew
sm all lo a n act, N e b ra sk a A s s is ta n t
A tto rn e y G e n e ra l E d w in V ail ru le d
re c e n tly .
T h e o p in io n w a s a d d re sse d to W ade
M artin, s ta te d ire c to r of b a n k in g , w h o
e x p la in e d se v e ra l n a tio n a l b a n k s, in
c lu d in g th e F ir s t N a tio n a l a n d C o n ti
n e n ta l of L in co ln , h a d ta k e n th e te n
ta tiv e p o sitio n th e y w o u ld n o t be su b
je c t to th e n e w law .
To b a c k th e ir p o sitio n , M a rtin said,
th e n a tio n a l b a n k s d isp la y e d a le tte r
w r itte n J u n e 21st b y th e U. S. C om p
tr o lle r of C u rre n c y in w h ic h th e o p in
ion w a s e x p re sse d th a t “co m p lian ce
w ith th e p ro v isio n s of L B 282 w o u ld
re s u lt in a n u n w a r r a n ta b le a n d u n d u e
in te rfe re n c e w ith th e ex e rc ise of th e
fu n c tio n of th e n a tio n a l b a n k s in th e ir
c a p a c ity as in s tr u m e n ta litie s of th e
fe d e ra l g o v e rn m e n t.”
D iscu ssio n of th e n e w s ta te sm all
lo an law a n d o th e r m a tte r s of g e n e ra l
b a n k in g in te r e s t w as h e ld re c e n tly a t
L in c o ln b y a c o m m itte e of th e N e
b ra s k a B a n k e rs A ssociation. No deci
sio n w a s re a c h e d or fu tu r e p la n s d e
cided u p o n , Carl Ganz of A lvo, p re s i
d en t, re p o rte d .
T h e loan la w w a s p a sse d d u rin g
th e la s t u n ic a m e ra l session.
O th e r officers of th e A sso c ia tio n a re
W illiam M itten of F re m o n t, c h a irm a n
of th e e x e c u tiv e council, a n d W illiam
H u ghes, O m aha, se c re ta ry .
B an k in g S up erinten dent M artin a n
n o u n c e d th a t liq u id a tio n of th e Se
Bank Help W anted
M an y a ttra c tiv e p o s itio n s now open from
C hicago to Pacific C o ast fo r p o s tin g m a c h in e
o p e ra to rs, sten o g ra p h e rs, te lle rs and a s s is ta n t
c ash ie rs. C o u n try b an k e x p erien ce p re fe rred .
W rite fo r a p p lic a tio n b lan k .
c u rity S ta te B a n k of L a w re n c e, w h ic h
w as ta k e n o v e r as in so lv e n t on O cto
b e r 13, 1939, h a s b e e n com p leted . T h e
N u ck o lls c o u n ty d is tric t e n te re d a n
o rd e r a p p ro v in g th e re c e iv e r’s re p o rts
a n d d isso lv in g th e c o rp o ra tio n . W h e n
closed it h a d $80,136 o n dep o sit. A ll
c re d ito rs h a v e b e e n p a id in full. T h e
b a n k h a d o u ts ta n d in g $20,000 of p re
fe rre d a n d $5,000 of co m m o n stock.
T h e re c e iv e r h a s r e tu r n e d to th e p r e
fe rre d h o ld e rs $16,000, or 80 p e r cent.
I n a c o m p a ra tiv e s ta te m e n t of th e ir
re so u rc e s a n d lia b ilitie s of th e 285
s ta te b a n k s o p e ra tin g u n d e r th e s u
p e rv isio n of D ire c to r W ade Martin, a
sh o w in g is m ad e th a t sin ce D ecem b er
30th a n d u p to J u n e 30th, lo a n s in
c re a se d $2,924,893 fro m $39,448,300 to
$42,373,193. G o v e rn m e n t b o n d h o ld in g s
in c re a se d $407,000 d u rin g th e six
m o n th s a n d n o w s ta n d a t $13,145,000.
O th e r b o n d h o ld in g s sh o w little
c h a n g e in to ta ls, n o w b e in g $4,288,000.
T o tal re so u rc e s a re $89,360,630.
D em an d d e p o sits d e c re a sed $534,767
to $47,711,102, w h ile tim e d ep o sits in
c re a se d $123,946 to $20,107,922. P o sta l
sa v in g s a c c o u n ts m o re th a n doubled,
fro m $62,152 to $142,971 or $80,818 in
crease. B a n k e rs ’ b a la n c e s a n d c e rti
fied ch eck s d e c re a sed sh a rp ly . T o tal
d e p o sits w e re $76,502,306 on J u n e 30th,
o r $590,338 less th a n a t th e close of
la s t y e a r.
B ills p a y a b le in c re a se d
$129,607 to $146,107 w h ile o th e r lia
b ilitie s d e c re a sed $24,000.
C om m on
sto ck
o u ts ta n d in g
in
c re a se d $192,930 to $7,126,030, w ith
p re fe rre d sto ck of $308,470 b e in g b u t
slig h tly in c re a se d .
D e b e n tu re s d e
c re a se d fro m $420,900 to $334,500, le a v
in g to ta l c a p ita l em p lo y ed a t $7,769,000,
a n in c re a se of $110,000. S u rp lu s fu n d s
in c re a se d $82,100 to $2,882,975; u n d i
v id ed p ro fits fro m $1,503,477 to $1,617,682, a n d re se rv e s fro m $376,490 to
$390,585.
One n e w b a n k w a s a d d ed d u rin g
th e six m o n th s perio d .
Bank Clearings High
H a stin g s b a n k c le a rin g s fo r th e first
se v e n m o n th s of th is y e a r to ta l $4,654,347.61, h ig h fo r th e p e rio d sin ce th e
b a n k h o lid a y in 1933, ta b u la tio n s r e
v e a le d re c e n tly .
T o ta l fo r th e sam e se v e n m o n th s
a y e a r ago w a s $3,923,219.33.
C learin g s fo r J u ly a t th e tw o local
in s titu tio n s to ta le d $676,381.73, com
p a re d to $554,536.90 fo r th e c o rre sp o n d
in g m o n th s a y e a r ago, b u t c o n sid e r
ab ly less th a n th e J u ly h ig h of $87,336.52, e sta b lish e d in 1936. T h e J u ly
fig u re is also sm a lle r th a n th e $805,-
"double-duty"
In Lincoln, N eb rask a's capital city, w e offer
sound correspondent service plus contacts you
m ay wish here with State governm ent head s.
Try our "double-duty" service.
(O N T IN E N T A L R A T IO N A L
B
a jík
LINCOLN
Member Federal Deposit Insurance Corporation
T H E C H A R L E S E . W A L T E R S CO.
P. O. B o x 1313, O m alia, N e b r a sk a
N o r th w e s te r n B a n k e r S e p te m b e r 19bl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
68
• NEBRASKA
662 a n d $705,119 c le a re d in M ay a n d
Ju n e , re sp e c tiv e ly , th is y e a r. T h e M ay
a n d J u n e c le a rin g s c o n trib u te d m a te
ria lly to th e g a in m ad e so fa r th is y ear.
Shut Out Small Loans
T h e in s ta llm e n t lo an law , L. B. 282,
th r e a te n s to s h u t o u t fro m N e b ra sk a
s ta te b a n k s th e m a n y b o rro w e rs of
sm all sum s, re p a y a b le u s u a lly on p a y
day, b ecau se th e n e w law is h e ld to
p re c lu d e th e a p p lic a tio n of a m in im u m
c h a rg e th a t is n e c e ssa ry to p a y th e
co st of p u ttin g su c h lo an s on th e books,
N E WS
Defense Bonds
c h a rg e a n d feels r a th e r k e e n ly th e fact
th a t N e b ra sk a b a n k s h a v e th e p o o re st
sco re of a n y s ta te in th is F e d e ra l R e
se rv e D is tric t in th e m a tte r of q u a lify
in g to sell bon d s. R e c e n tly h e a d
d re sse d a sp ecial le tte r to th e b a n k s
th a t h a v e n o t re sp o n d e d a t all, also to
th o se th a t p la n n e d to q u a lify b u t h av e
n o t do n e so, also to th o se th a t a re n o t
c o n sid e rin g it. H e feels th a t q u alifi
ca tio n is a to k e n of c o o p e ra tio n in th e
n a tio n a l d e fe n se p ro g ra m .
C h a irm a n W m . N. M itte n of th e
e x e c u tiv e co u n cil of th e N e b ra sk a
B a n k e rs A sso c ia tio n h a s th is m a tte r in
Formal Opening Held
sin ce it fig u res m o re th a n 9 p e r c e n t
a n d th e n e w p e n a lty is sev ere. T h e
R eg io n al C le a rin g h o u se s a re b ein g
a sk e d to sc h e d u le a d isc u ssio n of th is
p u zzlin g su b ject. T h e a sso c ia tio n h as
a special c o m m itte e of s ta te b a n k e rs
do in g e v e ry th in g p o ssib le to find a
so lu tio n th a t w ill allo w c o n tin u a n c e
of se rv ic e to th is class of b o rro w e r.
O u r S ta te C o n v e n tio n
The Live Stock N ational Bank extends greetings to
the 1941 convention of the Iow a Bankers A ssociation
in Des Moines. Since our first birthday in the '90's,
we h av e alw a y s taken an active part in association
affairs.
C ooperation with other association m em bers h a s also
b een fundam ental in this bank. This spirit of cooper
ation is the reaso n that so m an y ban k s use us as
their correspondent b an k in Sioux City.
O F F IC E R S
C. L. F re d ric k se n , P re s id e n t
M . A. W ilso n , V ice P re s id e n t
W . G. N elson, A s s is ta n t V ice P re s id e n t
W . C. Schenk, C ash ier
H . C. L in d u sk i, A s s is ta n t C ash ier
C. L. A d am s, A s s is ta n t C ash ier
J. S. H a v er, A s s is ta n t C ash ier
D IR E C T O R S
C. R. M cK enna, P res., Jo h n so n B isc u it Co.
B. L. Sifford, A tto rn e y , Sifford & W ad d en
G. F . S ilk n itte r, P re s id e n t, S ioux C ity
Stock Y ard s C om pany
C. L. F re d ric k se n , P re s id e n t
M . A. W ilso n , V ice P re s id e n t
H . C. B osw ell, S e c re ta ry -T re a s u re r,
W e s te rn C o n tra c tin g C orp o ratio n
“The Bank at the Y a r d s ’
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
LIV ESTO CK
NATIONAL
BANK
S I O U X C I T Y , IO W A
N o r th w e s te r n B a n k e r S e p te m b e r 19'll
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
T h e F ir s t N a tio n a l B a n k of O gallala,
w h ic h h a s re c e n tly b e e n co m p letely
m o d ern ized , h e ld a fo rm a l o p en in g
a n d g u e st d ay fo r its p a tro n s a n d
frie n d s in o rd e r th a t th e y m ig h t look
o v er th e n e w f u r n itu r e a n d fix tu res.
G u ests w e re ta k e n on a c o n d u c te d to u r
of th e b a n k , a n d each one re c e iv e d
a s o u v e n ir b e fo re le a v in g th e b a n k
In th e b a n k ’s J u n e 30th s ta te m e n t
a n all-tim e c o u n ty h ig h re c o rd in d e
p o sits w a s se t fo rth . A t th a t tim e
th e b a n k ’s to ta l d e p o sits w e re a n
n o u n c e d as $1,055,854. T o ta l a sse ts
w e re liste d a t $1,170,786. L o an s a n d
d isc o u n ts to ta le d $498,787, d e m a n d d e
p o sits $788,870, tim e d e p o sits $160,059.
Emery Peterson Honored
I t w a s ju s t b ro u g h t to o u r a tte n tio n
th a t E m e ry O. P e te rso n , p re s id e n t of
th e U n ite d S ta te s C heck B ook Com
p an y , O m aha, w a s re c e n tly th e re c ip
ie n t of tw o r a th e r sig n ific a n t h o n o rs.
One of th e s e w a s h is e lectio n to th e
p re sid e n c y of th e O m ah a M a n u fa c
tu r e r s A sso ciatio n , a n d th e o th e r w as
h is a p p o in tm e n t to th e b o a rd of d ire c
to rs of th e O m ah a R o ta ry Club. Mr.
P e te rs o n is also c h a irm a n of th e R o
ta r y C lu b ’s c o m m itte e fo r th e c a re of
c rip p le d ch ild re n .
F ro m all w e h e a r, M r. P e te r s o n ’s
tim e does n o t lie on idle h a n d s. As
p re s id e n t of one of th e c o u n tr y ’s m o st
a c tiv e m a n u fa c tu re rs of ch eck s a n d
o th e r b a n k su p p lies, h e is fre q u e n tly
th e first m e m b e r of th e firm to s ta r t
w o rk in th e m o rn in g a n d o fte n th e la s t
one to q u it a t n ig h t.
W e c o n g ra tu la te M r. P e te rs o n fo r
th e d istin c tio n h e h a s re c e iv e d a n d fo r
h is a g g re ssiv e n e ss as h e a d of th e ch eck
bo o k firm .
New Bank Teller
M iss P h y llis J a e g e r h a s a c cep ted a
p o sitio n as te lle r a t th e F a ir b u r y S tate
B ank. She w a s fo rm e rly em p lo y ed b y
th e Io w a S ta te B a n k of W e st B end,
Io w a, a n d com es to F a ir b u r y h ig h ly
reco m m en d ed .
69
of $3,706,083 in lo an s a n d d isc o u n ts to
a to ta l of $23,223,748.
T h e d e p o sits in clu d e a b o u t $20,100,000 in d e m a n d d ep o sits, $13,300,000 in
tim e d e p o sits a n d $9,700,000 in d ep o sits
of sta te s a n d p o litic a l su b d iv isio n s.
T h e re so u rc e s in c lu d e $5,400,000 in
g o v e rn m e n t o b lig atio n s, $5,200,000 in
o b lig a tio n s of o th e r p o litic a l u n its a n d
$14,900,000 in c a sh a n d due fro m b a n k s.
SOUTH
DAKOTA
L. T. M O R R IS
P re s id e n t
W aterto w n
NEWS
Returns to Gettysburg
H e n ry F ric k , w h o fo r th e p a s t y e a r
h a s b een c o n n e c te d w ith a b a n k a t
W h e a to n , M inn., w ill r e tu r n to G e tty s
b u rg S e p te m b e r 1 to re su m e h is old
d u tie s a t P o tte r C o u n ty B ank.
M r. F ric k w a s c o n n e c te d w ith th e
P o tte r C o u n ty B a n k fo r m a n y y e a rs
b e fo re b e in g tr a n s f e r r e d to th e W h e a t
on b ra n c h .
Largest Debit Percentage
B ro o k in g s ex ceed ed all o th e r S o u th
D ak o ta citie s in its p e rc e n ta g e of in
c re a se of d e b its to in d iv id u a l a c c o u n ts
in b a n k s in J u ly as c o m p a re d to Ju ly ,
1940, it w a s a n n o u n c e d re c e n tly b y th e
N in th F e d e ra l R e se rv e B a n k a t M in n e
apolis.
T h e se d eb its, a c c o rd in g to th e b a n k ,
a re “fo r th e m o st p a r t c h eck s a g a in s t
d e p o s ito rs ’ a c c o u n ts, a n d th u s r e p r e
s e n t p a y m e n ts fo r goods.” T h e y h a v e
b e e n re g a rd e d in m a n y q u a r te r s as th e
s u r e s t in d e x to b u sin e ss a c tiv ity of a
c o m m u n ity .
T o ta l d e b its in J u ly w e re $2,318,000,
as c o m p a re d to $1,558,000 in J u ly , 1940.
B y w a y of c o m p a riso n , d e b its of M ad
ison, o n ly c ity of c o m p a ra b le size in
th e sta te , w e re $1,199,000.
Prominent Banker Dies
M. P lin B eebee, 59, p r o m in e n t I p s
w ic h b a n k e r a n d fo rm e r p ra c tic in g a t
to rn e y th e re , d ied la s t m o n th a t a
H u ro n h o s p ita l a f te r a s h o r t illn ess, of
e n c e p h a litis.
M r. B eebee w a s a g ra d u a te of th e
U n iv e rs ity of S o u th D ak o ta L a w
School, a n d w a s p ro m in e n tly k n o w n
in legal circ le s th r o u g h o u t th e s ta te
b e fo re h e su cceed ed h is fa th e r, th e la te
M arcu s P. B eebee, as p re s id e n t of th e
B a n k of Ip sw ic h . M r. B eebee w a s
la te r e le c te d p re s id e n t of th e S o u th
D a k o ta B a n k e rs A sso ciatio n , a n d also
h e ld a n a p p o in tm e n t fro m th e A m e r
ican B a n k e rs A ssociation.
To Meet at Sioux Falls
T h e 1942 c o n v e n tio n of th e S o u th
D ak o ta B a n k e rs A sso ciatio n w ill be
h e ld a t S ioux F a lls on W ed n esd ay ,
G EO R G E M. S T A R R IN G
S ec re ta ry -T rea su re r
H u ro n
T h u rs d a y a n d F rid a y , J u n e 3, 4 a n d
5, w ith h e a d q u a rte rs a t th e C a ta ra c t
H otel, it w a s a n n o u n c e d re c e n tly b y
Geo. M. S ta rrin g , se c re ta ry .
A t a re c e n t m e e tin g of th e G ro u p
officers of th is A sso c ia tio n th e fo llo w
in g sc h e d u le of d a te s fo r th e 1941 m e e t
in g s w a s a rra n g e d :
M onday, O cto b er 20— G ro u p V II
L ead.
T u esd ay , O cto b er 21—G ro u p V I
M obridge.
W ed n esd ay , O cto b er 22—G ro u p
a t W a te rto w n .
T h u rsd a y , O cto b er 23—G ro u p V
H u ro n .
F rid a y , O cto b er 24— G ro u p I I I
M itchell.
S a tu rd a y , O cto b er 25— G ro u p I I
S iou x F alls.
M onday, O cto b er 27—G ro u p I
Y an k to n .
at
at
IV
at
at
at
at
Attend Group Meetings
H. E . E d m u n d s a n d M a rtin J. Slernp,
of Y a n k to n , p re s id e n t a n d se c re ta ry
tr e a s u r e r , re sp e c tiv e ly , of G ro u p No.
1, S o u th D ak o ta B a n k e rs A sso ciatio n ,
a tte n d e d a m e e tin g in H u ro n re c e n tly
of th e officers of th e se v e n G ro u p s of
th e s ta te fo r th e p u rp o se of a rra n g in g
fo r th e a n n u a l G ro u p m e e tin g s to be
h e ld d u rin g th e la tte r p a r t of O cto
b er. T h e m e e tin g w a s w ell a tte n d e d ,
it is re p o rte d b y th e Y a n k to n A sso cia
tio n officials.
R u sse ll B. K n u d se n , asso c ia te c o u n
c ilm a n of th e A m e ric a n I n s titu te of
B a n k in g , acco m p a n ied E d m u n d s a n d
S lem p to H u ro n w h e re h e c o n su lte d
w ith b a n k e rs a t th e m e e tin g re g a rd in g
th e e s ta b lis h m e n t of s tu d y g ro u p s lo
c a te d in th e e a s te rn h a lf of th e sta te .
Resources High
S o u th D ak o ta b a n k s h a v e re so u rc e s
$6,366,000 g re a te r th a n a y e a r ago a n d
d e p o sits n e a rly $6,000,000 g re a te r, th e
S ta te B a n k in g D e p a rtm e n t re p o rte d
a fte r th e J u n e 30 call of th e 124 b an k s.
R e so u rc e s a re liste d a t $50,860,524
a n d d e p o sits a t $44,209,627. T h e b a n k s
re p o rte d a n in c re a se of $184,572 in
s u rp lu s to $1,282,775 a n d a n in c re a se
New Bank Employe
R o b e rt V oyles, w h o h a s b e e n a sso
c ia te d fo r th e p a s t tw o a n d one-half
y e a rs w ith th e F ir s t N a tio n a l B a n k of
th e B lack H ills a t B elle F o u rc h e , h a s
re c e n tly ac c e p ted a p o sitio n w ith th e
D elm o n t S ta te B an k .
L eo H o u lto n , c a sh ie r of th e D elm o n t
b a n k , w ill r e tir e N o v e m b e r 1st. Mr.
H o u lto n h a s b e e n w ith th e b a n k fo r
som e tim e.
Former Banker Dead
F r e d D. H e n d e rso n , 65, fo rm e r
b a n k e r a n d M oody c o u n ty official, died
a t h is h o m e in F a rg o , N o rth D akota,
re c e n tly .
M r. H e n d e rso n e sta b lish e d th e C iti
zen s S ta te B a n k of C olm an a n u m b e r
of y e a rs ago.
Bank President Dies
A.
M. C h riste n se n , p re s id e n t of th e
M in n e h a h a C o u n ty B an k , of V alley
S p rin g s, d ied a t h is h o m e th e re r e c e n t
ly a f te r a n illn e ss of tw o y e a rs. H e
w o u ld h a v e b e e n 37 y e a rs old on A u g
u s t 22d.
A ccepts New Position
E lm e r H e n d ric k s, w h o h a s b e e n co n
n e c te d w ith th e C o n su m e rs’ C o o p era
tiv e of C an to n , h a s a c cep ted a p o sitio n
w ith th e F a rm e rs S ta te B a n k of th a t
city.
M r. H e n d ric k s ta k e s th e p lace of
G eorge H an so n , w h o re c e n tly re sig n e d
to go to C alifo rn ia.
Sioux Falls A . I. B.
W e n d e ll S c u rr of th e N a tio n a l B a n k
of S o u th D ak o ta of S io u x F a lls, a n d
p re s id e n t of th e S io u x F a lls c h a p te r
of th e A m e ric a n In s titu te of B a n k in g ,
alo n g w ith o th e r c h a p te r officers a n d
c o m m itte e c h a irm e n , is b u sy o rg a n iz
in g classes fo r th e co m in g y e a r a n d
a n n o u n c e s th a t M oney a n d B a n k in g
a n d T r u s t B u sin ess, T r u s t II, w ill be
th e tw o co u rse s offered s tu d e n ts e n
ro llin g fo r th e seaso n 1941-42.
P. H. M cD ow ell, v ice p re s id e n t a n d
tr u s t officer of th e N o rth w e s t S e c u rity
N a tio n a l B a n k of S io u x F a lls, w ill
a g a in tu to r th e tr u s t b u sin e ss g ro u p
a n d O liv er A. B ray , a s s is ta n t c ash ier,
N o rth w e s t S e c u rity N a tio n a l B a n k of
N o r th w e ste r n B a n k e r S e p te m b e r 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
70
•
SOUTH
S io ux F a lls, w ill in s tr u c t th e M oney
an d B a n k in g class.
It h a s b een th e cu sto m of th e S ioux
F a lls c h a p te r to hold its co m m en ce
m e n t e x e rc ise s in e a rly S e p te m b e r
each y e a r, a n d p la n s a re u n d e r w a y
fo r th is y e a r ’s c o m m e n c e m en t a n d
b a n q u e t on S e p te m b e r 6th, a t w h ic h
tim e d ip lo m as w ill be p re s e n te d to
s tu d e n ts w ho h a v e su c c e ssfu lly com
p le te d th e re q u ire d n u m b e r of courses.
T h e class ro o m s of th e S ioux F a lls
c h a p te r a re in th e N o rth w e s t S e c u rity
N a tio n a l B a n k b u ild in g a n d classes
THE
P ublic
National
B ank
DAKOTA
N E WS
w ill a g a in be co n d u c te d W e d n e sd a y
a n d T h u rs d a y e v e n in g s of each w eek,
b e g in n in g S e p te m b e r 17th a n d 18th
fo r 28 w eeks.
C h ristin a M u eller re p re s e n te d th e
S ioux F a lls c h a p te r as its official d ele
g a te a t th e N a tio n a l C o n v e n tio n h e ld
in S an F ra n c isc o in J u n e . T h e N a
tio n a l o rg a n iz a tio n h a s selected N ew
O rlean s as its m e e tin g p lace fo r its
n e x t y e a r ’s c o n v e n tio n .
NEVER SA Y " N O " TO A
PRO SPECTIVE B O R R O W ER
(C o n tin u e d fro m p ag e 15)
to w n a n d s ta y in R o c h e ste r w h ile th e
one in ju re d or ill is “g o in g th r o u g h ”
th e v a rio u s ste p s of p h y sic a l e x a m in a
tion, o fte n tim e s a m a tte r of w eek s. It
is n a tu r a l th a t th e s e th o u s a n d s of
p e rso n s w ill h a v e o ccasion to u se
b a n k in g fa c ilitie s d u rin g th e ir s ta y in
R o c h e ste r, a n d M r. D a b le ste in say s
th a t float a n d se rv ic e c h a rg e s in h is
b a n k a m o u n t to a b o u t $1400 p e r
m o n th .
T h e O lm stead C o u n ty B a n k & T ru s t
AND
TRUST COMPANY
OF NEW YORK
•
C o m p an y w a s o rg a n iz e d in 1919, an d
in th a t y e a r h a d $100,000 in d eposits.
Committee Members
Appointed
F iv e St. P a u lite s h a v e b e e n a p
p o in te d to c o m m itte e s of th e U n ite d
S ta te s S av in g s a n d L o an L e a g u e by
P a u l E n d ic o tt, P o m o n a, C alifo rn ia.
Jo h n F. S cott, p re s id e n t of th e M in
n e so ta F e d e ra l S av in g s a n d L o a n A sso
ciatio n , w a s a p p o in te d c h a irm a n of
th e m e m b e rsh ip co m m ittee, a m e m b e r
of th e sp ecial c o m m itte e on fin an cin g
low co st h o u sin g . O th e rs n a m e d w e re
V e ra C. S oash, M in n e so ta F e d e ra l S av
in g s an d L oan, v ice c h a irm a n cu p co n
te st; A x el A. O lson, St. P a u l F e d e ra l
S a v in g s a n d L o an , h o u sin g co m m ittee;
H a r r y M iller, F ir s t F e d e ra l S av in g s
a n d L oan, h o m e ta x a tio n , a n d W . R.
M ahood, N o r th e r n F e d e ra l S av in g s
a n d L o an , v ice c h a irm a n on re a l es
ta te m a n a g e m e n t.
T h e co m m itte e s
w ill m e e t D ecem b er 1st a t M iam i a n d
re p o r t to th e n a tio n a l c o n v e n tio n th e r e
la te r th a t w eek.
- C o n s id e r th e
O p p o rtu n itie s
for
S o r v i c e — M a in tain in g an
intimate, personalized corre
spondent bank service.
profitable
R esources over
$ 1 7 5 ,0 0 0 ,0 0 0
your
loan s
volum e
through
of
w are
h ou se receipts again st inventory.
— over your loan
possibilities
E x p e r i e n c e —Officials with
years of service in this field,
assuring a knowledge of re
quirements and valuable as
sistance.
P o l i c y — To cooperate with
out-of-town banks rather than
compete for business which is
rightfully theirs.
increasing
ote how m an y com panies
h a v e inventories that could
ea sily b ecom e loan actualities
through Field W arehousing by
D ouglas-G uardian.
Field Warehousing
bi/Douglas-Gu
W R IT E f o r F R E E B o o k le t o r f u r t h e r i n f o r m a tio n . W e o ffer:
o v e r 18 y e a r s o f e x p e rie n c e . . . s t r o n g f in a n c ia l p o s itio n . . .
efficient o p e r a tio n . . h ig h e s t r e fe r e n c e s . . n a tio n -w id e se rv ic e .
DOUGLAS-GUARDIAN WAREHOUSE CORP.
ESTABLISHED 1908
N a t io n - w id e F ie ld W a r e h o u s i n g S e r v ic e
MEMBER
NEW YORK CLEARING HOUSE ASSOCIATION
FEDERAL DEPOSIT INSURANCE CORPORATION
Suite 1 1 0 4 -A , 1 0 0 W. Monroe St.
Chicago, III.
1 1 8 No. Front St.
New Orleans, La.
Atlanta, Ga., Easton, Md., Philadelphia, Pa., Rochester, N. Y., Cleveland, O.,
Los Angeles, Cal., Portland, Ore., San Francisco, Cal., Dallas, Tex., Memphis, Tenn.,
Tampa, Fla., Springfield, Mo., Springfield, Mass., New York, N. Y.
N o r th w e s te r n B a n k e r S e p te m b e r 19hl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
71
ch ase of a u to m o b ile accesso ries, su c h
as rad io s, h e a te rs, etc., a n d fin an cin g
r e p a ir bills. U n d e r th is p la n it is
p o ssib le fo r a n a u to m o b ile o w n e r to
o rd e r su ch accesso ries o r re p a irs as
h e n eed s, b rin g th e in v o ice to th e
b a n k a n d w a lk o u t in a few m in u te s
w ith a ch eck fo r th e a m o u n t needed.
MINNESOTA
NEWS
0 . G. JO N E S
P re s id e n t
R ed W in g
Assets O ver
$14,700,000 Mark
A r e p o r t by th e T w in C ity F e d e ra l
S a v in g s a n d L o a n A sso ciatio n of St.
P a u l s ta te s th a t a sse ts of th e o rg a n i
z a tio n a re n o w in ex cess of $14,700,000
a n d th a t m e m b e rs ’ a c c o u n ts h a v e in
c re a se d a lm o st $3,500,000 in th e la st
y ear.
In a d d itio n to m a in ta in in g a th r e e
p e r c e n t d iv id e n d ra te , th e c o n c e rn
h a s m ad e a d d itio n s to re s e rv e fu n d s
a n d u n d iv id e d p ro fits a c c o u n ts in th e
a m o u n t of a p p ro x im a te ly $100,000 in
th e p a s t y ear.
N o tw ith s ta n d in g low in te r e s t ra te s ,
e a rn in g s a re th e re fo re e n tire ly a d e
q u a te fo r th e p a y m e n t of a th r e e p e r
c e n t d iv id e n d a n d also fo r th e m a k in g
of s u b s ta n tia l a d d itio n s to re s e rv e s
a n d u n d iv id e d profits.
T h e a sso c ia tio n also r e p o rts a co n
tin u in g h e a v y d e m a n d fo r lo an s on
hom es.
A. M. B laisd ell is p re s id e n t of th e
T w in C ity F e d e ra l. R oy W . L a rs e n
a n d H e n ry R in e s a re vice p re sid e n ts,
B. N. B ell is s e c re ta ry -tre a s u re r, R. H.
R in e s is a s s is ta n t s e c re ta ry , a n d F. H.
S tin ch field is counsel.
R u sse ll M.
J o h n s o n is m a n a g e r of th e St. P a u l
office.
Bank Debits Soar
W IL L IA M DUNCAN, J r .
S ecretary
M inneapolis
officials of th e b a n k a n d th e y w o rk e d
o u t th e tim e c re d it p la n of m a k in g
lo an s on a m o n th ly re p a y m e n t b asis.
T h ro u g h th is d e p a rtm e n t, th e b a n k
finan ces p u rc h a se s of n e w a n d u sed
au to m o b iles, lo a n in g fo r p e rio d s u p
to e ig h te e n m o n th s on n ew c a rs a n d
fifteen m o n th s on u se d cars. T h e s e rv
ice also in c lu d e s p e rso n a l lo an s of
fro m $50 to $1,000 to re sp o n sib le p e r
sons fo r u se in m e e tin g ta x e s, p a y in g
m o rtg a g e in te re s t, m ed ical o r d e n ta l
bills, o r in s u ra n c e a n d o th e r o b lig a
tio n s of a sim ila r n a tu re . M o d ern i
z a tio n lo an s u n d e r T itle 1 of th e N a
tio n a l H o u sin g A ct also com es u n d e r
tim e c re d it serv ice.
A n e w se rv ic e is n o w b ein g offered
by th e b a n k ’s tim e c re d it d e p a rtm e n t
th a t p ro v id e s fo r fin an cin g th e p u r
S u p e rio r b a n k d e b its fo r th e first
se v e n m o n th s of 1941 w e re $4,643,000
ab o v e th e fig u res fo r th e sim ila r p e rio d
la s t y e a r, ac c o rd in g to M in n eap o lis
F e d e ra l R e se rv e B a n k sta tistic s.
L ocal d e p o sito rs d re w ch eck s to ta l
in g $41,343,000 so fa r th is y e a r as com
p a re d w ith $36,700,000 la st y e a r. J u ly
figures, th e b e st in se v e ra l y e a rs, w e re
17 p e r c e n t ab o v e la s t y e a r. B a n k e rs
said th e m a rk e d in c re a se w a s in d ic a
tiv e of im p ro v e d b u sin e ss c o n d itio n s.
T h e g e n e ra l tr e n d fo r th e n o r th e r n
p a r t of th e s ta te sh o w ed a n u p sw in g
of 22 p e r c e n t o v er J u ly , 1940, w h ile
se v e n -m o n th sta tis tic s w e re 17 p e r c e n t
ab o v e a n id e n tic a l p e rio d fo r 1940.
U p sta te b a n k d e b its fo r J u ly w e re 2
p e r c e n t ab o v e th e a v e ra g e in c re a se
fo r th e e n tire fe d e ra l re se rv e d istric t.
A 27 p e r c e n t rise w a s re g is te re d
a t A sh lan d , w h e re d eb its fo r J u ly w e re
$2,746,000 as co m p a re d w ith $2,160,000
la st y ear. B a rro n J u ly d e b its sw u n g
Timecredit Plan Popular
A ste a d y in c re a se in its local loan
b u sin e ss is n o te d b y th e M idw ay N a
tio n a l B a n k of St. P au l, a c o n d itio n
w h ic h reflects a n in c re a sin g p u b lic
a c c e p tan c e of th e in s titu tio n ’s tim ec re d it lo an service.
T h e b a n k e n te re d th e c o n su m e r
c re d it field in 1937, a n d its tim e c re d it
p la n h a s m ad e it a c o n sp ic u o u s fa c to r
in th e a u to m o b ile a n d p e rso n a l finance
b u sin e ss in th e T w in C ities sin ce th a t
tim e.
E s ta b lis h e d in 1910 to se rv e th e
ra p id ly d e v e lo p in g M idw ay d istric t,
th e M idw ay N a tio n a l h a s c o n d u c te d
a ' g e n e ra l b a n k in g b u sin e ss fo r 29
y e a rs, p ro g re ssiv e ly e x p a n d in g its
fa c ilitie s fro m tim e to tim e to m e e t
n e w needs. E a r ly in 1937, a n e e d fo r
c o n su m e r c re d it becam e a p p a r e n t to
O ut o f a class of 181, th e th re e m en p ic tu re d a b o v e a re th e only ones fro m the
N in th F e d e ra l R e se rv e D is tric t to g ra d u a te th is y e a r fro m th e G ra d u a te School
of B a n k in g c o n d u cted b y th e A m e ric an B a n k e rs A sso c ia tio n a t R u tg e rs U n i
v e rs ity . R e a d in g fro m le f t to rig h t th e y a re — H arold C. Soderman, a u d ito r,
F i r s t T ru s t C om pany, St. P a u l, who m a jo re d in T ru sts a n d m in o re d in I n v e s t
m e n ts; D. C. Stockm an, a s s is ta n t cash ie r, N a tio n a l B a n k of Comm^gce, M a n k a to ,
M in n e so ta, m a jo rin g in In v e s tm e n ts a n d m in o rin g in C om m ercial B a n k in g ; an d
S. J. K ryzsko, a s s is ta n t c ash ie r a n d a s s is ta n t t r u s t officer, W in o n a N a tio n a l and
S a v in g s B a n k , W in o n a , M in n e so ta, w ho m a jo re d in C om m ercial B a n k in g an d
m in o re d in T ru sts. M r. K ry z sk o is a sso c ia te c o u n cilm an fo r A m e ric an I n s t i tu t e
of B a n k in g in so u th e rn M in n e so ta.
N o r th w e s te r n B a n k e r S e p t e m b e r 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
72
•MINN ESOTA
NEWS*
u p w a rd s 24 'p e r cen t, R ice L a k e 26
p e r cent. S ev en -m o n th g a in s in th e se
th r e e c ities ra n g e d fro m 12 to 21 p e r
cent.
b a n k , N o rth D ak o ta, fo r six y e a rs a n d
a t F e rg u s F a lls sin ce 1938.
Bank Figures Up
H a ro ld J. D u n n h a s jo in e d th e staff
of th e F ir s t F e d e ra l S a v in g s & L o an
a sso c ia tio n of M in n eap o lis as p u b lic
re la tio n s co u n sel, W . R. Y o u n g q u ist,
s e c re ta ry a n d m a n a g e r of th e a sso c ia
tio n , said re c e n tly . M r. D u n n w as, fo r
18 y e a rs p re v io u sly , a sso c ia te d w ith
T h e T ow le Co., 10 y e a rs as s e c re ta ry
a n d m a n a g e r of its re s id e n tia l m o r t
gage a n d in s u ra n c e d e p a rtm e n t. H e
is also tr e a s u r e r of th e M in n eap o lis
M o rtg ag e B a n k e rs ’ asso ciatio n .
T h e d o lla r v o lu m e of J u ly b u sin e ss
in F e rg u s F a lls as m e a su re d b y b a n k
d e b its fig u res re p o rte d fro m local
b a n k s to th e F e d e ra l R e se rv e B a n k of
M in n eap o lis w a s $2,517,000 six p e r
c e n t above th a t re p o rte d fo r th e sam e
m o n th a y e a r ago.
C hecks d ra w n by d e p o sito rs a g a in st
th e ir a c c o u n ts in local b a n k s d u rin g
th e p a s t se v e n m o n th s to ta le d $16,050,000 as a g a in s t $15,812,000, fo r th e
first sev en m o n th s of 1940.
Succumbs to Encephalitis
H a rd in H e lla n d of F e rg u s F a lls
p a sse d a w a y la s t m o n th a f te r a fo u r
d a y s ’ illn e ss w ith e n c e p h a litis.
He
w a s b o rn in N o rm a n C ounty, M in n e
so ta, N o v e m b e r 19, 1883, a n d sp e n t h is
b o y h ood d ay s a t F o ssto n ,, M in n esto ta,
a n d liv ed a n u m b e r of y e a rs a t A rgyle,
M in n eso ta. H e w as c a sh ie r a n d p re s i
d e n t of th e F a rm e rs a n d M echanics
B a n k of A rgyle, a n d field m a n of th e
M in n eap o lis B ra n c h , w h ic h p o sitio n he
h eld u n til h is d e a th . H e liv ed in Mill-
Joins First Federal
Heads Rock County Bank
H e n ry W u e rtz , w h o h a s b e e n c a sh ie r
of th e F a r m e r s a n d M e rc h a n ts S ta te
B a n k of T racy , le ft th e r e la s t m o n th
to becom e p re s id e n t a n d d ire c to r of
th e R ock C o u n ty S ta te B a n k of Luv e rn e .
Attend Bankers Meeting
E. O. P e te rso n , p re s id e n t of th e
U n io n S ta te b a n k of T h ie f R iv e r F alls;
A rch ie H e n sru d , c a sh ie r; a n d H. A.
B ru m u n d a n d A n d re w A n d erso n , d i
re c to rs, re c e n tly s p e n t a w e e k e n d a t
B re e z y P o in t L odge, P eq u o t, M in
n eso ta, in a tte n d a n c e a t a m e e tin g of
officers of b a n k s affiliated w ith th e
N o rth w e s t B a n c o rp o ra tio n .
A ccepts Bookkeeping
Position
D an F ia la , Jr., w h o h a s b e e n em
p lo y ed as te lle r a t th e F a r m e r s N a
tio n a l B a n k of A le x a n d ria fo r th e p a s t
fo u r a n d a h a lf y e a rs, a n n o u n c e d h is
re s ig n a tio n la s t m o n th to ta k e o v e r a
p o sitio n in th e b o o k k e e p in g d e p a rt
m e n t a t th e B a n k of W illm ar.
Promotions Announced
P ro m o tio n of tw o m e m b e rs of th e
staff of th e B a n k of C om m erce a n d
S av in g s, of D u lu th , w a s a n n o u n c e d r e
c e n tly b y J a y E . M ark le, p re sid e n t.
C arl W . B e rg lu n d , fo rm e rly c a sh ie r
h a s b e e n a d v a n c e d to vice p re s id e n t
a n d c a sh ie r. W illia m C. L o n tz, fo r
m e rly te lle r, h a s b e e n p ro m o te d to a s
s is ta n t c a sh ie r. M r. B e rg lu n d h a s b een
in th e H e a d of th e L a k e s b a n k in g field
fo r 28 y e a rs a n d jo in e d th e B a n k of
C o m m erce a n d S a v in g s la s t S e p te m
b er. M r. L o n tz h a s b een a m e m b e r of
th e staff fo r th r e e y e a rs. H e is a g ra d
u a te of th e U n iv e rs ity of N o rth D a
kota.
Use the “Short Route” to
THE MIDLAND
Iowa bankers can profit greatly by using the ultra stream
lined transportation and mail services which link the state
of Iowa with Minneapolis.
Famous throughout the nation for their speed and modern
design are the Rock Island's "Rocket." "Zephyr-Rocket", and
Mid-Continent Airlines "Great Plains Route." These three
super-fast transportation facilities link the whole state of
Iowa to Minneapolis.
Non par items mailed at the close of the day's business in
Iowa are received by the Midland in Minneapolis the fol
lowing morning and sent direct the same day.
Par items mailed at the close of the day's business are re
ceived by the Midland the following morning and go to the
Federal the same day.
In many cases Iowa bankers can save from one to t w o days
by taking advantage of Midland's efficient correspondent
service and the excellent transportation facilities available.
• Jj 1
1 National Bank &
Trust Company
IfllQ la llQ
o f M in n e a p o lis
Second
A venue
Member Federal Deposit Insurance Corporation
N o r th w e ste r n B a n k e r S e p t e m b e r 19?il
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
South
at
4th
St., M inneapolis
73
Twin C ity News
| T w as a s o rt of a “h o m e c o m in g ” fo r
se v e ra l se c tio n s of F irst N ational
Bank & T rust C om pany’s tr u s t d e
p a r tm e n t w h e n th e y m o ved in to n e w
ly m o d e rn iz e d q u a r te r s a t 115 S. F if th
stre e t.
F o r n o t so m a n y y e a rs ago a ll d e
p a r tm e n ts of th e M in n eap o lis T r u s t
C om pany, n o w a p a r t of th e b a n k ,
w e re lo cated a t th a t a d d re ss.
M oved fro m th e ir p re v io u s lo catio n
on th e first floor of N ew Y ork L ife
b u ild in g w e re th e tr u s t d e p a r tm e n t’s
a d m in is tra tiv e , in v e s tm e n t a n d s ta tis
tic a l officers a n d th e a g e n c y a n d in
v e s tm e n t d iv isio n s. T h e b a n k a d v is
o ry d iv isio n of F ir s t N a tio n a l is also
lo cated in th e n e w q u a rte rs .
Space in th e N ew Y ork L ife b u ild
in g v a c a te d b y th e m ove w ill be r e
m o deled to acco m m o d ate th e tr u s t d e
p a r tm e n t’s a c c o u n tin g a n d c o rp o ra te
d iv isio n s.
By James M. Sutherland
Special Correspondent
rison, c o m p tro lle r of F ir s t N a tio n a l
B a n k & T r u s t C om pany, M in n eap o lis;
A. B. Lathrop, v ice p re sid e n t, F ir s t
N a tio n a l B an k , St. P a u l; L. P. Gisvold,
a s s is ta n t c a sh ie r, N o rth w e s te rn N a
tio n a l B a n k & T r u s t C om pany, M in
n eap o lis; a n d C. M. Jorgensen, p re s i
d e n t, F o u r th N o rth w e s te rn N a tio n a l
B an k .
L. H . Sedlacek, ch ief n a tio n a l b a n k
e x a m in e r fo r th e N in th F e d e ra l R e
se rv e D istric t, h a s b een a p p o in te d
d e p u ty c o m p tro lle r of th e c u rre n c y .
M elvin D. Burt, fo rm e rly re g io n a l
o p e ra tio n s
m anager
of U n iv e rsa l
C re d it C om pany, h a s b e e n a p p o in te d
m a n a g e r of th e in s ta llm e n t lo an d e
p a r tm e n t of M id lan d N a tio n a l B a n k &
T r u s t C om pany, a c c o rd in g to a n
n o u n c e m e n t b y A rn ulf U eland, vice
p re sid e n t. T h e b a n k p la n s to e x p a n d
its lo an b u sin e ss d e p a rtm e n t.
JAMIESON
&
CO MP AN Y
Slocks
Bonds
Grain
Q
Cotton
Butter
Eggs
Com m odity Brokers
•
L ym an E. W akefield, p re sid e n t,
F ir s t N a tio n a l B a n k & T r u s t C om
p a n y , h a s b e e n re a p p o in te d to th e
finance c o m m itte e of th e U. S. C h am
b e r of C om m erce.
D u lu th b a n k e rs w e re h o sts to a
g ro u p of M in n eap o lis a n d St. P a u l
b a n k officials re c e n tly d u rin g th e six
te e n th a n n u a l N o rth la n d C o u n try
C lub in v ita tio n a l golf to u rn a m e n t.
A tte n d in g fro m th e T w in C ities
w ere M. O. Grangaard a n d C. B. Brombach, v ice p re s id e n ts , a n d K. M. Mor-
n e c te d w ith th e e x a m in e r’s office in
th is d is tric t fo r 10 y e a rs o u t of th e
p a s t 17.
A n a tiv e of S p en cer, N eb ask a, h e
w o rk e d in s ta te a n d n a tio n a l b a n k s
in M o n tan a, Io w a a n d S o u th D ak o ta
b e fo re jo in in g th e c o m p tro lle r of c u r
re n c y ’s office in 1924 as a n a s s is ta n t
n a tio n a l b a n k e x a m in e r a t M in n e a p
olis.
In 1927 he w a s m ad e e x a m in e r a n d
in 1932 w as d e ta ile d to W a sh in g to n
to w o rk on th e re o rg a n iz a tio n of
closed b a n k s in re c e iv e rsh ip . W ith
th e b a n k h o lid a y of 1933 h e w as n a m e d
ch ie f of th e re o rg a n iz a tio n d iv isio n
in c h a rg e of all b a n k re o rg a n iz a tio n s.
W h e n th is w o rk w a s co m p leted in
J u n e , 1934, h e w a s tr a n s f e r r e d to S an
F ra n c isc o in c h a rg e of c ity b a n k e x
a m in a tio n s. J a n u a r y 1, 1939, h e b e
cam e ch ie f n a tio n a l b a n k e x a m in e r
Members
N ew York Stock E xchange
and Other Principal Exchanges
•
ST. PAUL — MINNEAPOLIS
•
L. H.
SED LA CEK
H e to o k o v e r h is n e w d u tie s in W a s h
in g to n S e p te m b e r 1st.
W id ely k n o w n in n o rth w e s t b a n k
in g circles, S ed lacek h a s b e e n co n
G overnm ent — M unicipal
Corporation Bonds
•
CHARLES C. RIEGER
Manager
Bond Department
Minneapolis — Atlantic 8235
N o r th w e ste r n B a n k e r S e p te m b e r 19'iî
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
74
• MINNESOTA
fo r th is d is tric t w ith h e a d q u a rte rs in
M inneapolis. Mr. S ed lacek succeeds
A. J. M u lro n ey , w h o re sig n e d to b e
com e a vice p re s id e n t of th e C hicago
F e d e ra l R e se rv e B ank.
Joseph H. Column, m e m b e r of th e
M in n eap o lis law firm of F le tc h e r,
D orsey, B a rk e r, C olrnan a n d B a rb e r,
w a s n a m e d a d ire c to r of F ir s t B a n k
S to ck C o rp o ra tio n a t a m e e tin g of
th e board.
T h e d ire c to rs also d e c la re d th e
th irty -se c o n d co n se c u tiv e d iv id en d ,
a m o u n tin g to 30 c e n ts a sh a re . I t is
NEWS
p a y a b le O ctober 1st to sto c k h o ld e rs
of re c o rd S e p te m b e r 15th. T h e r a te
is th e sam e as th a t p a id in A p ril th is
y e a r a n d in O cto b er a n d A p ril, 1940.
M. O. Grangaard, vice p re s id e n t of
F ir s t N a tio n a l B a n k & T r u s t Com
p a n y , w a s c h a irm a n of th e M in n e a p
olis Civic & C om m erce A sso ciatio n
c o m m itte e in c h a rg e of th e a n n u a l
4-H clu b b a n q u e t A u g u st 27th. Som e
1,400 4-H clu b b o y s a n d g irls, a ll c h a m
pions, w e re g u e sts. M in n eap o lis b u s i
n e ss m e n w e re h o sts, p re sid in g a t
each tab le.
R. E. M acgregor, v ice
•
p re s id e n t of N o rth w e s te rn N a tio n a l
B a n k & T r u s t C om pany, w a s a m e m
b e r of th e b a n q u e t co m m ittee.
A rchibald A. Crane, 75, o ld est liv in g
p a s t p re s id e n t of th e M in n e so ta B a n k
e rs A sso ciatio n , d ied re c e n tly w h ile
on a tr ip to L os A ngeles.
M r. C ran e w a s v ice p re s id e n t of
th e F ir s t N a tio n a l B a n k of M in n e
a p o lis fro m 1910 to 1921, re sig n in g
th e n to becom e v ice p re s id e n t of th e
B a n k e rs I n v e s tm e n t C o m p an y of
M in n eap o lis.
P re s id e n t of th e S ta te B a n k e rs A s
so c ia tio n in 1899-1900, h e also w a s a
tr e a s u r e r of th e A m e ric a n B a n k e rs
A sso ciatio n . H e w a s b o rn in A u stin ,
M in n eso ta. A t th e tim e of h is d e a th
h e w a s p re s id e n t of th e P io n e e rs club
of th e M. B. A. T h e w id o w a n d a son
su rv iv e .
Bank Resources High
B a n k s of F a r ib a u lt C o u n ty sh o w ed
a g a in of o v e r $100,000 to re a c h a n ew
h ig h in to ta l re so u rc e s of $8,210,738.65
a t th e J u ly 1 re p o rt. E ig h t of th e
th ir te e n b a n k s sh o w e d s u b s ta n tia l
g a in s in re s o u rc e s a n d fo r th e first
tim e th r e e of th e c o u n ty ’s b a n k s r e
p o rt re so u rc e s of c o u n ty b a n k s a re as
follow s a c c o rd in g in g to th e K ie ste r
Courier.
Let Us Assist You
Due to current high prices of the livestock going
into feed lots, banks will experience exceptionally
heavy dem ands from the feeders for financing.
We specialize in feeder financing and our service
to banks located in feeder territo ry will be especially
valuable this year.
Our com plete banking facilities assure prom pt and
efficient handling of all South St. P aul transactions.
Stock Yards National Bank
S o u t h S t. P a u l , M i n n e s o t a
M EM BER F E D E R A L D E P O S IT IN S U R A N C E C O RPO R A TIO N
N o r th w e ste r n B a n k e r S e p te m b e r Í 9 M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
B lu e E a r th S ta te
$1,113,258.51
F ir s t N a tio n a l K ie ste r
1,045,924.79
F ir s t F a rm e rs , B lu e E a r th 1,030,403.28
F ir s t N a tio n a l, W in n e b a g o
781,248.77
F a r m e r s N a tio n a l, M in n e
so ta L a k e
711,519.04
S e c u rity S tate, W ells . .
625,694.35
F ir s t N a tio n a l, E lm o re .
610,974.65
P eo p les S tate, W ells
599,292.51
S ta te B an k , B ric e ly n
563,408.64
F a r m e r s S tate, D e la v a n
337,426.34
F r o s t S ta te B a n k ...............
320,339.67
F a rm e rs , H u n tle y ............
274,888.21
E a s to n S ta te .......................
198,359.90
T o ta l ................................
$8,210,738.65
B an k in g O p p o rtu n itie s
A few e x c e p tio n a lly a ttra c tiv e oppor
tu n itie s to p u rc h a se s u b s ta n tia l m in o rity
and c o n tro llin g in te re s ts in b anks w ith
re so u rc es from $600,000 to $3,000,000.
L o c a tio n s in Io w a , M in n eso ta , n e ig h b o r
in g s ta te s . In v e s tm e n t re q u ire d w ill v a ry
from $25,000 to over $100,000. C orrespond
ence is in v ite d from qualified ban k ers.
B an k H elp
Q ualified m en and w om en for p o sitio n s
as a s s is ta n t cash ie rs, te lle rs , bookkeepers,
and a ll ban k p o sitio n s. L e t us know your
re q u ire m e n ts. W . R. O lson Com pany.
“ A C onfidential P la c e m e n t Service for
B a n k e rs .”
F E R G U S F A L L S , M IN N E S O T A
75
NORTH
DAKOTA
J . I. H E G G E
P re s id e n t
H illsboro
NEWS
G oes to Minot
Ja c k R e itsc h , c a sh ie r of th e M in ers
a n d M e rc h a n ts B a n k of R o u n d u p , M on
ta n a , h a s a c c e p ted a p o sitio n as a s s is t
a n t c a sh ie r of a M inot b a n k , a n d w ill
soon ta k e u p h is d u tie s th e re .
Mohr Elected President
F re d M ohr of F e sse n d e n w as e le c t
ed p re s id e n t of th e F ir s t N o rth D ak o ta
C le a rin g H o u se A ssociation, in c lu d in g
b a n k s in th e c o u n tie s of F o s te r, W ells,
E d d y a n d B enson, w h e n m e m b e rs m e t
la s t m o n th a t th e R a in b o w G a rd e n s in
C a rrin g to n fo r a first a n n iv e rs a ry d in
n e r m e e tin g a n d a n e v e n in g of social
e n te rta in m e n t.
O th e r officials ele c te d w e re E. B.
N o rin of H a rv e y , vice p re sid e n t, a n d
A. L. G a rn a a s of S h ey en n e, se c re ta ry tr e a s u r e r .
E x e c u tiv e c o m m itte e is
com posed of H. C. D u n tle y of C a rrin g
to n, M a rtin A as of N ew R o ckford, M.
J. H e ib e rg of M in n e w a u k a n , a n d H o w
a rd T u r n e r of H eato n .
R e tirin g officers of th e g ro u p a re
C. J. E r s ta d of M addock, p re sid e n t;
F re d M ohr, vice p re sid e n t, a n d L y n n
S chw oebel of N ew R o ck fo rd , se c re
ta ry -tre a s u re r.
A ccepts Montana Position
G eorge S k o g lu n d , fo r th e p a s t five
y e a rs b o o k k e e p e r a n d te lle r a t th e C iti
zens N a tio n a l B a n k of W a h p e to n , h a s
g o n e to R o u n d u p , M o n tan a, w h e re he
h a s ac c e p ted a p o sitio n as a s s is ta n t
c a sh ie r in th e M in ers a n d M e rc h a n ts
S ta te B an k . S k o g lu n d is a fo rm e r R u t
land, N o rth D akota, re sid e n t.
C. C. W A TT AM
S ecretary
F argo
m e n t w e re am o n g th e p rin c ip a l r e a
sons. M em b ers of th e c le a rin g h o u se
a re th e F ir s t N a tio n a l B an k , L ib e rty
N a tio n a l B a n k a n d F a r m e r s S ta te
B ank.
D ick in so n b a n k s a g a in h a v e b e e n
fo rced to re d u c e in te r e s t ra te s.
E ffectiv e A u g u st 1, o n ly one p e r c e n t
p e r a n n u m w ill be p a id on six -m o n th s’
tim e c e rtific ate s of d e p o sit a n d one a n d
one-half p e r c e n t on 12-m onths’ tim e
c e rtific ate s of deposit.
T h e D ick in so n C learin g H o u se a n
n o u n c e d th a t a decid ed in c re a se in e x
cess re s e rv e s a n d lo a n a b le fu n d s p lu s
a u n iv e rs a l re d u c tio n of in te r e s t r a te s
o n s e c u ritie s elig ib le fo r b a n k in v e s t
PROSPERITY "R A IN S" IN
TH E D A K O T A S
(C o n tin u e d fro m p ag e 17)
Elected Cashier
J. R. T h o m as, a s s is ta n t c a sh ie r of
th e D ak o ta N a tio n a l B a n k of B ism a rc k
w h e re h e h a s b e e n em p lo y ed fo r th e
p a s t fo u r y e a rs, h a s b e e n elected c a sh
ie r of th e S tock G ro w ers B a n k of N a
poleon, it w as a n n o u n c e d re c e n tly .
T h o m a s to o k o v e r h is d u tie s a t N a
p o leo n A u g u st 1st. H e su cceed ed W .
D. H e u p e l th e re , H e u p e l b ein g a d
v a n c e d a t th e sam e tim e to th e p o si
tio n of vice p re sid e n t.
Brief News
T h e F ir s t S ta te B a n k of G ilby w a s
g ra n te d p e rm issio n to e s ta b lish a n d
o p e ra te a p a y in g a n d re c e iv in g sta tio n
a t In k s te r, N o rth D ak o ta, a n d th e c e r
tificate of a u th o r ity fo r su c h s ta tio n
w a s issu e d b y th e S ta te B a n k in g
B oard.
T h e F ir s t S ta te B a n k of S h a ro n w a s
g ra n te d p e rm issio n to e s ta b lish a n d
o p e ra te a p a y in g a n d re c e iv in g sta tio n
a t A n eta, a n d th e c e rtific ate of a u th o r
ity fo r su c h s ta tio n w a s issu e d b y th e
S ta te B a n k in g B oard.
T h e B a n k of H a z e lto n w a s g ra n te d
p e rm issio n to e s ta b lish a n d o p e ra te a
p a y in g a n d re c e iv in g s ta tio n a t S trasb u rg , a n d th e c e rtific ate of a u th o r ity
fo r su c h s ta tio n w a s issu e d b y th e
S ta te B a n k in g B oard.
Commodity Credit Lending
Reduce Interest Rates
d o c u m e n ts, a n d f u rth e r, it m u s t see to
it th a t a n y n e w le n d in g ag en cy th a t
com es in to p o ssessio n of su c h n o te
sh a ll m a k e th e sam e re q u ire m e n t of
a n y s u b se q u e n t le n d e r to w h o m it
m ig h t tr a n s f e r th e loan.
To fa c ilita te th e m a k in g av a ila b le of
su c h in fo rm a tio n , it is re c o m m e n d e d
th a t lo an tr a n s f e r s be lim ite d to n o t
m o re th a n tw o in n u m b e r.
I t is h o p e d th a t th e c o m m ercial
b a n k s m a y a p p re c ia te th e o p p o rtu n ity
of re n d e rin g th is im p o rta n t se rv ic e to
th e C o m m o d ity C red it C o rp o ra tio n a n d
a s s is t it in m in im iz in g th e difficulties
in lo catin g lo an p a p e rs th a t h a v e b een
e x p e rie n c e d in p re v io u s y e a rs.
U n d e r a re c e n t re g u la tio n issu e d b y
th e C o m m o d ity C red it C o rp o ra tio n th e
o rig in a l le n d in g ag e n c y —a n d th is r e
fe rs to th e co m m e rc ia l b a n k th a t
m a k e s a n o rig in a l w h e a t lo an to a
fa rm e r—w ill be e x p e c te d to k eep itse lf
in fo rm e d a n d be ab le to a d v ise th e
C om m o d ity C re d it C o rp o ra tio n a t all
tim e s as to th e lo catio n of all lo a n doc
u m e n ts o rig in a tin g in th a t b a n k . E v e n
th o u g h th e lo an is sold b y th e o rig in a t
in g b a n k , its re c o rd s m u s t sh o w th e
lo catio n of th e n o te a n d su p p o rtin g
p u re b re d sire s a n d h ig h class h e r d
an im als. In 1940, 41 b a n k s re p o rte d
th a t th e y h a d lo an ed fa rm e rs $1,485,283 fo r th e sam e p u rp o se . T h is is a
g re a t a d v a n c e a n d sh o w s th a t b o th
fa rm e rs a n d b a n k e rs in a ll p a rts of th e
s ta te h a v e confidence in th e fu tu r e a n d
a re g o in g in fo r q u a lity . C o n g ra tu la
tio n s to th e a g ric u ltu ra l c o m m itte e of
th e S o u th D ak o ta B a n k e rs A sso ciatio n
w h ic h h a s fo r th e p a s t se v e ra l y e a rs
b e e n s tre s s in g b e tte r sire s fo r h e rd im
p ro v e m e n t. T h e fo llo w in g ta b le g iv es
a c o m p a riso n of re p o rts fo r 1940 a n d
1941:
F u n d s B orrow ed fro m B anks
2-year period 2-year-period
en d in g 6-30-40 e n d in g 6-30-41
54
41
No. of banks re p o rtin g . .
No. o f an im als financed
3,443
508
R egistered bulls ...........
1,080
331
R egistered c o w s ...........
3,811
190
R egistered calves . . . .
159,681
24,926
G rade c a ttle ...............
R egistered boars and
1.354
419
S O W S ...............................
31,389
2,265
G rade hogs ....................
R egistered ra m s a nd
6,937
1,037
167,053
74,770
G rade sheep .................
$4,005,213
A m ount lo a n e d ................. .$1,485,283
“A re c e n t s u rv e y co n d u c te d b y th e
G re a te r S o u th D a k o ta A sso ciatio n in
d ic a te s th a t d u rin g th e c u r r e n t y e a r
3,100 fa rm s, c o m p risin g a b o u t 800,000
acres, h a v e b e e n p u rc h a s e d in th is
sta te ; 814 of th e b u y e rs w e re te n a n ts .
O nly 88 w e re fro m o u tsid e th e sta te .
E ig h ty -se v e n p e r c e n t of th e b u y e rs
w ill o p e ra te th e lan d , w h ic h co m p rises
96 p e r c e n t of th e to ta l a c re a g e in
volved.
T h ese p u rc h a se s, a d d ed to
th o se disclo sed b y o u r 1940 su rv e y ,
m ak e a to ta l of a b o u t 6,000 fa rm s
b o u g h t d u rin g th e tw o seaso n s, w ith
a to ta l of a b o u t 1,500,000 acres. T h is
re c o rd s u re ly is a te stim o n ia l to th e
confidence w h ic h fa rm e rs h a v e in
S o u th D a k o ta la n d a n d to th e fa c t th a t
th e r e a re c o n sis te n t p ro fits fo r th o se
fa rm e rs w h o can u se a lead p e n c il in
a d d itio n to o th e r fa rm tools. (W e b e
liev e th e fig u res ab o v e a re a b o u t 75
(T u rn to p ag e 102, p lease)
N o r th w e s te r n B a n k e r S e p te m b e r 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
76
F
OR MORE than half a century the
the
past
Iow a
Bankers
A ssociation
served Iow a and Iow a banks.
Greetings
25
A ssociation
consecutive
affairs
have
years,
b een
has
During
our
ab ly
supervised b y one lo yal, efficient secre
tary, our ow n Frank Warner!
to the Iow a
Convention!
We
heartily
congratulate
Secretary
W arner on his quarter-century anniver
sary, and w e extend best w ish es for a
great Iow a Convention in D es M oines,
Septem ber 8-10.
W e are also h ap p y to point out this
bank's
service record — nearly
forty
y ears of constructive service to the
W aterloo trade territory.
Your account
with us w ill be m ost w elcom e!
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
P. 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 T E R L O O SAVINGS B A N K
W aterloo, Iow a
M em b er F e d e ra l D e p o sit In s u ra n c e C orp o ratio n
N o r th w e ste r n B a n k e r S e p t e m b e r Î 9 M
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Federal Reserve Bank of St. Louis
77
55th Annual Convention
Iowa Bankers Association
Des Moines
Headquarters
Sept. 8-9-10
Hotel Ft. Des Moines
H. R. Y O U N G
P re s id e n t, Iow a B an k e rs A sso c ia tio n
THE PROGRAM
Tuesday Forenoon
September 9
C o n v e n tio n called to o rd e r—H. R.
Y oung, c a sh ie r, A m e ric a n N a tio n a l
B an k , A rlin g to n ; p re sid e n t, Io w a
B a n k e rs A ssociation.
M usical p ro g ra m (15 m in u te s ).
S inging, “G od B less A m e ric a ”—By
au d ien ce.
In v o c a tio n —R ev. P e rc y H. N ickless,
p a sto r, C e n tra l P r e s b y te ria n C h u rch ,
D es M oines.
A d d re ss of w elco m e— R olfe O. W a g n e r,
p re sid e n t, D es M oines C learin g
H o u se A ssociation; p re sid e n t, C api
ta l C ity S ta te B an k , D es M oines.
R esp o n se to a d d re ss of w elcom e—H. J.
S tu h lm ille r, vice p re s id e n t a n d tr e a s
u re r, Io w a B a n k e rs A ssociation;
p re sid e n t, S ta te S av in g s B an k , F o n
ta n e lle .
(N ote: M r. S tu h lm ille r, as vice p re s i
d e n t of th e Io w a B a n k e rs A sso ciatio n
a t th is tim e a ssu m e s th e c h a ir a n d p r e
sid es o v e r th e c o n v e n tio n u n til a f te r
th e p r e s e n ta tio n of th e iv o ry g a v e l to
th e p re sid e n t.)
A n n u a l a d d re ss of th e p re s id e n t—
H. R. Y oung, c a sh ie r, A m e ric a n N a
tio n a l B an k , A rlin g to n .
P re s e n ta tio n to th e p re s id e n t of th e
iv o ry g av el— J. J. M a tth e w s, vice
p re sid e n t, U n io n B a n k & T r u s t Com
p a n y , S tra w b e rry P o in t.
R esp o n se—P re s id e n t H . R. Y oung,
(T h e p re s id e n t re su m e s p re sid in g .)
P re s id e n t a p p o in ts c o n v e n tio n com
m ittees: on re so lu tio n s; a n y sp ecial
c o m m ittees.
A d o p tin g a sso c ia tio n a l re p o rts as p r e
se n te d u p o n b e h a lf of co m m ittee
ch a irm e n :
A g ric u ltu ra l, H. N. B oyson, C edar
R apid s; a u d itin g , F . A. Jo n es, T am a;
b a n k in g a n a ly sis, W . A. K n eelan d ,
P o stv ille; b a n k ta x a tio n , J. J. M at
th e w s, S tra w b e rry P o in t; c o m m itte e on
c o n su m e r c re d it, H. H. S iv rig h t, Des
M oines; e d u c a tio n a l, W . H. S w iler,
B u rlin g to n ; fe d e ra l leg islativ e, M. W .
E llis, Des M oines; fe d e ra l re se rv e , C. L.
F re d ric k s e n , S io u x City; in su ra n c e ,
J. C. C ollins, K n o x v ille; le g isla tiv e
(s ta te ), C. A. K n u d so n , A m es; o rg a n i
za tio n of officers of C o u n ty B a n k e rs
A sso ciatio n s, J. W . D avis, A voca; sec
r e ta r y ’s re p o rt, F r a n k W a rn e r, D es
M oines; tim e lock, P a u l L. Ja m e s,
T h o rn to n ; tr e a s u r e r ’s re p o rt, H. J.
S tu h lm ille r, F o n ta n e lle ; tr u s t b u s i
n ess, V an V e c h te n S haffer, C ed ar R a p
ids.
SPEA K ERS
P re s e n tin g —H on. M. W . E llis, n e w
s ta te s u p e rin te n d e n t of b a n k s, w h o
in t u r n w ill p re s e n t h is b a n k in g
b o a rd a n d d e p u ty s u p e rin te n d e n t of
b a n k s:
B.
F . K au ffm an , p re sid e n t, B a n k e rs
T r u s t C om pany, D es M oines; R a lp h
E a s tb u rn , e x e c u tiv e vice p re sid e n t;
Io w a S ta te B a n k a n d T r u s t C om pany,
F a irfield ; B. A. G ro n stal, p re sid e n t,
C ouncil B luffs S av in g s B an k , C ouncil
Bluffs; B. P. St. Jo h n , c a sh ie r, F ir s t
S ta te B an k , W e b ste r City; R. L. B unce,
d e p u ty s u p e rin te n d e n t of b a n k s, D es
M oines.
A d d ress, “T h e F a r m e r s ’ P a r t in th e
W a r ”— Clifford V. G reg o ry , asso ci
a te p u b lish e r, W a lla c e s’ F a r m e r a n d
Io w a H o m estead , D es M oines; d ire c
to r a n d d e p u ty c h a irm a n , F e d e ra l
R e se rv e B a n k of C hicago.
A d d ress, “W h a t th e U n ite d S ta te s
F a c e s T o d a y ”— H on. A lb en W . B a rk
ley, m e m b e r of th e U n ite d S ta te s
S en ate, W a sh in g to n , D. C.
M eetin g of th e Io w a A. B. A. m e m
b ers.
(T u rn to p ag e 80, p lease)
N o r th w e ste r n B a n k e r S e p te m b e r 1941
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Federal Reserve Bank of St. Louis
D e l u x e service stations areTo much a part of today’s land"
scape that it is hard to realize they were rarities only twenty
years ago. In 1920 Iowa had about 70 bonafide service stations.
Today, 7,000 service stations stand ready to supply the needs
of Iowa drivers.
In Iowa, as elsewhere, gasoline filling stations grew in number
because they adequately met the demand for modern motoring
service. Likewise, by adequately meeting the demand for mod"
ern banking service, the Bankers Trust of Des Moines has grown
steadily during those same years—w ith more than a fiveTold
gain in resources.
This growth in resources represents a parallel growth in cus"
tomers. Especially pleasing to us is the increase in the number
of Iowa banks who carry Des Moines accounts at this bank.
We are glad that Des Moines is host to Iowa bankers this
month. Speaking as officers and directors of the Bankers
Trust Company, we hope to see you at the convention, and
we hope you will find time to drop in for a visit at the bank.
M ember Federal D eposit Insurance Corporation
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
WHAT’S BEEN HAPPENING I N ^ ^
:
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Federal Reserve Bank of St. Louis
6th and Locust
Des Moines
80
THE IO W A P R O G R A M
(C o n tin u e d fro m p ag e 77)
Union Bonn
nno T rust
Compnnv
OFFICERS
FRANK YON SCHRADER
Chairman of Board and President
H. L. POLLARD
Vice President
R. W. FUNK
Vice President
MAX VON SCHRADER
Cashier
C. P. GLENN
Assistant Cashier
o T T u m u jn
W. C. MILLER
Assistant Cashier
FR ED DIMMITT
Assistant Cashier
Over 62 Vears
C. G. M ERRILL
Trust Officer
of Service
T h e I. B. A. C o n v e n tio n w ill a t th is
tim e be te m p o ra rily su sp e n d e d a n d
re so lv e d in to a c o n v e n tio n of th e Io w a
m e m b e rs of th e A. B. A. A ll w h o a re
n o t m e m b e rs of th e A. B. A. a re also
c o rd ia lly in v ite d to re m a in .
P re s e n ta tio n b y P re s id e n t H. R. Y oung
of M r. B. L. M cK ee, v ice p re s id e n t
of th e A. B. A. fo r Io w a, a n d v ice
p re s id e n t of th e M u sc a tin e B a n k a n d
T r u s t C om pany, M u scatin e.
R e m a rk s a n d re p o r t of th e y e a r ’s A.
B. A. w o rk in Io w a — B. L. M cKee.
E le c tio n s of Io w a A. B. A. officers.
M eetin g of th e Io w a m e m b e rs of th e
A. B. A. a d jo u rn e d .
P re s id e n t H. R. Y o u n g re su m e s p r e
sid in g .
S essio n a d jo u rn e d , 12:00 o’clock noon.
Tuesday Afternoon
September 9
By keeping constantly in touch with all the impor
tant developm ents in this a re a we a re ab le to
provide banks a n d bankers with a very helpful
correspondent service in southern Iowa w here we
respectfully solicit your business.
TOTAL
RESOURCES
OVER
$7,000,000
M e m b e r F e d e ra l R e s e r v e S y s te 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
N o r th w e ste r n B a n k e r S e p t e m b e r 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T w e n ty -first A n n u a l S ta te C o n feren ce
of th e officers of th e C o u n ty B a n k e rs
A sso c ia tio n s on “S till M ore P ro fit
ab le B a n k O p e ra tio n ” in Iow a.
PR O G R A M
1:30 P. M.— C o n feren ce called to o rd e r
a n d re m a rk s — J. W . D avis, p re sid e n t,
O rg a n iz a tio n of Officers of C o u n ty
B a n k e rs A sso ciatio n s; tr e a s u r e r , P o t
ta w a tta m ie C o u n ty B a n k e rs A sso cia
tio n ; p re s id e n t, C itizen s S av in g s
B an k , A voca.
R e p o rt of th e v ice p re sid e n t, H . B.
H a m m e r, v ice p re sid e n t, O rg an iza
tio n of Officers of C o u n ty B a n k e rs
A sso ciatio n s; f o r m e r p r e s i d e n t ,
L o u isa -W a sh in g to n C o u n ty B a n k e rs
A sso ciatio n ; e x e c u tiv e vice p re s i
d e n t, S ta te B a n k of W apello, W a p e l
lo.
R e p o rt of th e s e c re ta ry — J. F . K e n
n ed y , s e c re ta ry , O rg a n iz a tio n of Offi
c ers of C o u n ty B a n k e rs A sso cia
tio n s; p re s id e n t, C h ick asaw C o u n ty
B a n k e rs A sso ciatio n ; c a sh ie r, F ir s t
N a tio n a l B an k , N ew H a m p to n .
A p p o in tm e n t of n o m in a tin g c o m m it
tee.
G re e tin g s fro m p re s id e n t of I. B. A.—
H. R. Y oung, c a sh ie r, A m e ric a n N a
tio n a l B an k , A rlin g to n ; p re sid e n t,
Io w a B a n k e rs A sso ciatio n .
N ew 1941 A. B. A. m a n u a l on “S im p li
fied B a n k in g F o rm s a n d P ro c e d u re ”
(M ario n C o u n ty )— M o rtim e r G ood
w in , m e m b e r of a d v iso ry co m m itte e
c o o p e ra tin g w ith B a n k M a n a g e m e n t
C o m m issio n of th e A. B. A.; ex e c u
tiv e vice p re sid e n t, P e lla N a tio n a l
B an k , P ella.
F e a s ib ility of e m p lo y in g “O utside
F a rm
R e p re s e n ta tiv e ” b y
Io w a
b a n k s:
(T u rn to p ag e 82, p lease)
lowa Convention
Executive Committee
G. B. J E N S E N
P re s id e n t
D es M o in es B ank & T r u s t Co.
G. A. F R A M P T O N
P re s id e n t
Iow a S ta te B ank
R. O. W A G N E R
P re s id e n t
C ap ita l C ity S ta te B ank, D es M o in es
C h airm an E x e c u tiv e C o m m ittee
FRA N K K A U FFM A N
P re s id e n t
B an k e rs T r u s t Co., D es M o in es
W IL L IA M J. G O O D W IN
P re s id e n t
C e n tra l N a tio n a l B ank
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
G R A N T M cP H E R R IN
C h airm an of B oard
F ir s t F e d e ra l S ta te B ank
H E R B E R T L. H O R T O N
P re s id e n t
Io w a -D e s M o in es N a tio n a l B ank
D es M oines
F R E D M. M O R R IS O N
P re s id e n t
V a lle y S a v in g s B ank
S ta te
M. W . E L L IS
S u p e rin te n d e n t of
B an k in g
82
TH E IO W A P R O G R A M
(C o n tin u e d fro m pag e 80)
a. W ill th e e m p lo y in g of a n “O utside
F a rm R e p re s e n ta tiv e ” re n d e r u n fa ir
c o m p e titio n to th o se b a n k s n o t ab le
o r n o t d e sirin g to en g ag e su c h a p e r
son?
b. S h o u ld su c h “O utside F a rm R ep
r e s e n ta tiv e s ” r e p r e s e n t a c o m p o site of
one o r a ll of, o r m o re th a n th e fo llo w
ing: 1. S h o u ld h e h a v e b een a c o u n ty
ag e n t? 2. S h o u ld h e h a v e p re v io u sly
b een a n a c tiv e b a n k e r so th a t h e m ig h t
be called in to a c tu a lly do b a n k w o rk
a t c e rta in tim e s of th e m o n th o r th e
y e a r w h e n b a n k w o rk in c re a se s? 3.
S h o u ld h e h a v e b e e n a fo rm e r re a l es
ta te m a n a n d w ell v e rse d in b u y in g
a n d se llin g fa rm s a n d h a v e a w id e ac
q u a in ta n c e am o n g fa rm e rs? 4. S h o u ld
h e h av e b e e n a fo rm e r liv e sto c k b u y e r
o r fo rm e r co m m issio n m an ? 5. S h o u ld
he be a m a n w h o p e rh a p s fo rm e rly
m a n a g e d fa rm s fo r n o n re s id e n ts or
local re tir e d people? 6. S h o u ld h e be
w ell v e rse d in k n o w in g h o w to fo s te r
b o y s’ a n d g ir ls ’ 4-H C lub w o rk , su c h
as b a b y b eef calf clubs, p o u ltry clubs,
hog clubs, lo o k in g to w a rd b u ild in g fo r
f u tu r e b a n k c u sto m e rs a m o n g th e
p re s e n t y o u n g fa rm people? 7. S h o u ld
Convention Time
W e aw ait with g en u in e p leasu re the privilege
of attending the an n u al Iow a and N ebraska
State C onventions this month and next.
Not
on ly the ex ch a n g e of id ea s but the joy of
visiting with friends m a k es convention time a
delightful occasion .
Nothing short of an earthguake could ever k eep
us a w a y from th ese m eetin gs.
W e'll be seein g
y o u — in D es M oines and O m aha!
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
I N S IO U X C IT Y
N o r th w e s te r n B a n k e r S e p t e m b e r 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
h e be a m a n e x p e rie n c e d in h a n d lin g
a g ric u ltu ra l c re d its; k n o w h o w to a s
sem b le c re d it d a ta as w ell as to a n a
lyze a f a rm e r b o r r o w e r ’s fin an cial
sta te m e n t? 8. S h o u ld h e be a d e p t in
so lic itin g a g ric u ltu ra l lo a n s in co m p e
titio n w ith “O u tsid e F a r m R e p re s e n ta
tiv e s ” of th e P ro d u c tio n C red it A sso
c ia tio n s a n d th e F e d e ra l L a n d B an k ,
am o n g o th e r le n d e rs c o m p e tin g w ith
local b a n k s?
9. W h ile h e m a y be
d e sig n a te d as a n “O u tsid e F a r m R e p re
s e n ta tiv e ”, sh o u ld h is e n tire tim e be
d ev o ted to su c h fa rm c re d it w o rk or
sh o u ld h e be a m a n ab le to so licit
co m m e rc ia l lo a n s am o n g m e rc h a n ts
a n d b u sin e ss m e n as w ell as to so licit
lo an s on c ity re a l e sta te ? 10. S h o u ld
he be a m a n a d e p t n o t o n ly in so lic it
in g a g ric u ltu ra l lo an s a n d fa rm re a l
e sta te loans, b u t also one w h o k n o w s
h o w to m a k e a n d m a in ta in a co m p lete
in fo rm a tio n a l in v e n to ry on th e f a rm
e rs in th e b a n k ’s ow n tra d e te r r ito r y
a n d k n o w h o w to find o u t th e ir fin a n
cial n eed s a n d w h e n lo an s w ill be
w a n te d by su c h fa rm e rs, k n o w h o w to
ch eck c h a tte ls a n d o th e r co lla te ra l,
a n d be d ip lo m a tic b u t e v e rla s tin g ly
a fte r th e b u sin e ss of th o se fa rm e rs
lo cated in th e e m p lo y in g b a n k ’s tra d e
te rrito ry ?
c.
C an tw o o r m o re s m a lle r b a n k s
jo in in em p lo y in g th e sa m e “O utside
F a rm R e p re s e n ta tiv e ” p ro v id in g th e
lo catio n of th e b a n k in g to w n s a re suffi
c ie n tly s e p a ra te d so th a t h e m a y n o t
find h im se lf faced w ith th e p ro b le m of
try in g to d ecide to w h ic h b a n k e m
p lo y in g h im h e sh o u ld sw in g th is o r
th a t f a r m e r ’s b a n k in g b u sin ess?
H a rris o n c o u n ty — S. R. D eCou, p r e s i
d en t, H a rris o n C o u n ty B a n k e rs A s
so ciatio n ; c a sh ie r, F ir s t N a tio n a l
B an k , W o odbine.
C lin to n C o u n ty — E. M. W a rn e r, p re s i
d e n t, C ity N a tio n a l B an k , C linton.
G u e s t s p e a k e r , “D e d u c tib ility of
C harge-offs a n d T a x a b ility of R e
c o v e rie s”— L. C all D ick in so n , ta x
a tto rn e y , D es M oines.
G u est sp e a k e r, “E a rn in g s a n d R e
se rv e s— A S tu d y ”—W illia m C. R em pfer, c a sh ie r, F ir s t N a tio n a l B ank,
P a rk s to n , S o u th D ak o ta; fo rm e r
p re s id e n t of th e S o u th D ak o ta B a n k
e rs A sso ciatio n .
T h e fu tu r e n a tio n a l p o licy w ith r e
sp e c t to c o n su m e r c re d it loans, or
h o w fa r sh o u ld in s ta llm e n t len d in g
be c u rta ile d ?
P re s e n tin g sp e a k e rs — H a r r y H. Sivrig h t,
v ice
p re s id e n t,
Iow a-D es
M oines N a tio n a l B a n k a n d T r u s t
C om pany, D es M oines, a n d c h a irm a n
of th e C o n su m e r C re d it C o m m ittee
of th e Io w a B a n k e rs A sso ciatio n .
T alk , “F u tu r e P o lic y of C o n su m er
C re d it L e n d in g fro m a n Io w a View(T u rn to p ag e 84, p lease)
>
83
Fun and Frolic
at
The Iowa Convention
Golf, Luncheons, Theatre Parties, and
T H E FO U R B L EN D E R S
T h is in te rn a tio n a lly -k n o w n q u a r te t w ill a p p e a r a t th e
Io w a B a n k e rs C o n v en tio n . T h ey h a v e ju s t finished
sin g in g a n d sound b a c k g ro u n d w o rk in W a lt D is n e y ’s
“ R e lu c ta n t D r a g o n ” , soon to be re le a s e d in Io w a
th e a tre s , a n d h a v e su n g n u m b ers in o th e r D isn e y fu llle n g th fe a tu re s .
B A N K E R S a n d th e ir lad ies com ing
to th e a n n u a l c o n v e n tio n of th e
Io w a B a n k e rs A sso c ia tio n in Des
M oines, S e p te m b e r 7, 8, 9, a n d 10 h a v e
a w o n d e rfu l e n te r ta in m e n t tr e a t in
sto re fo r th e m . T h e g e n e ra l e n te r
ta in m e n t a n d golf to u r n a m e n t com
m itte e , m ad e u p of D es M oines b a n k
ers, is h e a d e d b y W in field W . Scott,
v ice p re s id e n t of th e V alley S a v in g s
B an k , o th e rs on th e c o m m itte e b e in g
H a r r y H. S iv rig h t, v ice p re s id e n t
Iow a-D es M oines N a tio n a l B a n k &
T r u s t C om pany; R a y m o n d G. M iller,
v ice p re s id e n t C ap ital C ity S ta te B ank;
E. F . B u ck ley , vice p re s id e n t C e n tra l
N a tio n a l B ank; a n d R ic h a rd R. R ollins,
v ice p re s id e n t B a n k e rs T r u s t C om
pany.
On M o n d ay a fte rn o o n , S e p te m b e r
8 th, th e Io w a A sso c ia tio n a n n u a l golf
to u r n a m e n t w ill be h e ld a t th e W akond a C o u n try Club. T h is w ill be follow ed
b y a social h o u r fo r th e m e n in th e
W a k o n d a C lub h o u se, a n d th e n th e
d in n e r a n d sh o w w ill ta k e place in a
la rg e te n t s e t u p on th e C lub g ro u n d s
ju s t s o u th of th e m a in p a rk in g are a .
T u e sd a y e v e n in g , S e p te m b e r 9th,
w ill be th e occasio n fo r th e A sso ciatio n
a n n u a l d in n e r, fo r lad ies a n d m e n
r e g is tr a n ts , im m e d ia te ly follow ed b y a
sta g e show .
F o r sp ecial e n te r ta in m e n t of lad ies
a tte n d in g th e co n v e n tio n , th e w o m e n ’s
c o m m itte e h a s a rra n g e d fo r a d in n e r
a n d sty le sh o w a t Y o u n k e rs T ea R oom
th e e v e n in g of M onday, S e p te m b e r 9th,
Two Big Stage Shows in Store for Bankers
Attending the Annual Meeting in Des Moines
w h ile th e m e n a re a t th e sta g p a r ty
a t th e W a k o n d a Club. F o llo w in g th e
d in n e r a n d sty le sh o w th e lad ies w ill
be a t lib e rty to a tte n d a n y one of th re e
o r fo u r m o v ies as g u e sts of th e D es
M oines C learin g H o u se A sso ciatio n .
T ic k e ts fo r th e m o v ies, h o w e v e r, w ill
be h o n o re d d u rin g a n y of th e th r e e
d a y s th e c o n v e n tio n is in session. On
T u e sd a y noo n , S e p te m b e r 9th, a r
ra n g e m e n ts h a v e b e e n m ad e fo r a
la d ie s’ lu n c h e o n a t th e W a k o n d a Club,
follow ed b y e n te rta in m e n t.
T h e c o n v e n tio n b u sin e ss se ssio n s
w ill also o p en w ith e n te r ta in m e n t of
fe rin g o u ts ta n d in g ta le n t. A t th e ses
sio n T u e sd a y m o rn in g , S e p te m b e r 9th,
J u g B ro w n a n d h is F o u r C o rk s w ill
p r e s e n t a p ro g ra m title d “M usical
M a d n e ss”, w ith p ian o , b a ss viol, saxa p h o n e , e le c tric g u ita r, a n d d ru m s.
T h e fo llo w in g m o rn in g , on W e d n e s
day, th e. F o u r B len d ers, in te rn a tio n a lly -k n o w n q u a rte t, w ill sin g a t 9:15
s h a rp fo r a s h o r t p ro g ra m .
A n d n o w fo r th e h ig h sp o ts of th e
big sh o w s sc h e d u le d fo r M o n d ay a n d
T u e sd a y n ig h ts, sta g e d b y C. W .
“D u tc h ” S ch m id t, w ith m u sic a l d ire c
tio n b y R o y W illiam s. T o m “P in k y ”
T ra c y w ill be m a s te r of c e re m o n ie s fo r
th e s ta g p a r ty e x tra v a g a n z a a t th e
W a k o n d a C lub M o n d ay e v e n in g , in
tro d u c in g first Y von N ova, ex o tic
d a n c e r— a n d th e w o rd “e x o tic ” m e a n s
w h a t y o u a re p ro b a b ly th in k in g it
does.
T h e n y o u w ill see B a lla rd a n d R ae,
w ith th e ir a c t title d “T w o B a n k e rs on
S k a te s ”. T h a t e v e n in g th e re w ill w ith
o u t d o u b t be m o re th a n tw o b a n k e rs
o n sk a te s, b u t B a lla rd & R ae w ill be
on th e sta g e — n o t m in g lin g w ith th e
crow d. G uy L a u re n a n d G in g er, a n d
th a t la s t n a m e h a s a s n a p p y so u n d
to it, w ill se rv e y o u m u sic a la m ode.
D o n ’t co n fu se th is w ith ice c re a m on
a p p le pie, sin ce w h a t th e se tw o d ish
o u t w ill be m u c h too h o t fo r th a t.
THE
M A L O N Y S IS T E R S
M a rily n and J a n is
N o r th w e s te r n B a n k e r S e p t e m b e r 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
84
T h e R ic h a rd so n T w in s a re ta p d a n c
e rs —tw o fa s t (d a n c in g b lo n d e m ite s of
d y n a m ite .
W h a t w e m e a n th e y
D A N C E —com e a n d see ’em . L illia n
B arnes-—le t’s p a u se h e re a m o m e n t,
g e n tle m e n , to te ll y o u a b o u t L illian .
L illia n sin g s—sh e sin g s so n g s—som e
of th e so n g s L illia n sin g s y o u m a y
h a v e h e a rd , b u t w e d o n ’t b eliev e so.
A t least, if y o u k n o w th e so n g s L il
lia n B a rn e s sings, w e a re q u ite su re
y o u r m o th e r n e v e r ta u g h t th e m to
you.
T h e re w ill be a c h a n g e of M. C.’s for
th e b a n q u e t sh o w to be sta g e d th e
e v e n in g of T u esd ay , S e p te m b e r 9. H e re
Del B reece w ill do th e h o n o rs, a s siste d
b y M iss B o sto n of 1938. Del is n o t
o n ly a to p -n o tch M. C., b u t h e is also
a p re s tid ig ita to r, a n d th e re , folks, is
a $5.98 w o rd if th e r e e v e r w a s one,
se rv ic e c h a rg e s included.
A w h ile b a c k w e m e n tio n e d th e
F o u r B len d ers, a n d th e y w ill be on
th is b a n q u e t show , in p e rso n , a q u a r
te t w e k n o w y o u w ill w a n t to h e a r.
T h e Six S e n sa tio n a l B ru c e tts, all-girl
a c ro b a tic tro u p w h ic h w ill p u t on
s tu n ts eye-filling a n d m u sc le -tw istin g
k n o w ju s t w h a t th a t m ean s, b u t ta k e
th e w o rd of D u tc h S c h m id t it is OK.
A n d on th is n ig h t y o u w ill h a v e th e
M alone S iste rs—th e ir p ic tu re sh o u ld
be so m e w h e re on a n o th e r page. T h e y
sin g a n d th e y p la y sw e e t m u sic on
in s tr u m e n ts of v a rio u s k in d s.
So th e r e y o u h a v e it—-tw o n ig h ts of
B ro a d w a y in D es M oines. T h e D es
M oines C le a rin g H o u se A sso ciatio n
h o p es y o u w ill e n jo y e v e ry m in u te .
THE IOWA PROGRAM
L I L L IA N
BARNES
-—th in g s y o u h a v e a lw a y s w a n te d to
do, b u t n e v e r lo st e n o u g h w e ig h t to
d a re to try .
S p e a k in g of d a re , a n o th e r fe a tu re is
D are a n d Y ates— th e y call th e ir a t
tra c tio n “S h o w in g Off”. W e d o n ’t
(C o n tin u e d fro m p ag e 82)
p o in t”— L e h m a n H. P lu m m e r, v ice
p re sid e n t, C e n tra l N a tio n a l B an k
a n d T r u s t C om pany, D es M oines;
fo rm e r c h a irm a n of C o n su m er C red
it C o m m ittee of I. B. A.
C u e st sp e a k e r, “F u tu r e P o licy of C on
su m e r C red it L e n d in g fro m a N a
tio n a l
V i e w p o i n t ” — W a lte r
B.
F re n c h , m a n a g e r, c o n su m e r c re d it
d e p a rtm e n t, A m e ric a n B a n k e rs A s
so ciatio n , N ew Y o rk City.
G u est sp e a k e r—H o n . L eo T. C row ley,
c h a irm a n , F e d e ra l D ep o sit I n s u r
an ce C o rp o ra tio n , W a sh in g to n , D. C.
4:15 P. M.— S essio n a d jo u rn e d .
O F F IC E R S O F O U R “ BA N K S D IV IS IO N ” : A bove, left to rig h t, C. A. C harlson and W. R. T ate.
Below , R. L. D unlap, E arl B auer, J. C. W illiam s, F. R. B rady and K a rl Sagl.
(ommercefrust (ompany
Capital, Surplus and Undivided Profits 12 Uulliou (Dollars
KANSAS CITY'S LARGEST BANK
Established 1865
N o r th w e ste r n R a n k e r S e p te m b e r 1 9 H
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
INSI^ANC^COR^^
85
Tuesday Evening
September 9
7:00 P. M.— B a n q u e t, in fo rm a l—O pen
to a ll m e n a n d w o m e n re g is te re d fo r
th e c o n v e n tio n . T ic k e t fo r th e b a n
q u e t a n d e n te r ta in m e n t w ill be
g iv e n to y o u a t th e tim e y o u re g is
te r; a d m issio n b y tic k e t only. A fine
p ro g ra m of e n te r ta in m e n t h a s b e e n
a rra n g e d fo r y o u b y th e D es M oines
C learin g H o u se A sso ciatio n .
W ednesday Forenoon
September 10
9:15 A. M.— M eetin g called to o rd e r—
P re s id e n t H . R. Y oung.
M usical p ro g ra m .
E le c tio n of officers: p re s id e n t, v ice
p re s id e n t a n d tr e a s u r e r .
A d d ress, “A m e ric a a t th e C ro ssro a d s”
— D r G eorge S. B en so n , p re sid e n t,
H a rd in g College, S earcy , A rk a n sa s.
A d d ress, “T h e L ig h ts a n d th e Illu sio n s
in th e A m e ric a n O u tlo o k ”— D r. R a y
m o n d M oley, fo rm e rly A s s is ta n t
S e c re ta ry of S tate, W a sh in g to n , D.
C.; n o w of N ew Y o rk City.
R e p o rt of co m m ittees.
Iowa Convention Committee Chairmen
J. R O Y C A P P S
C ash ier
C en tra l N a tio n a l B ank
C h airm an A u to m o b ile C o m m ittee
C L A R E N C E A. D IE H L
V ice P re s id e n t
Io w a -D e s M o in es N a tio n a l B ank
C h airm an B adge C om m ittee
R. L. C H A S E , JR .
A s s is ta n t V ice P re s id e n t
Io w a -D e s M o in es N a tio n a l B ank
C h airm an H o te l C om m ittee
F R A N K R. W A R D E N
V ice P re s id e n t
C en tra l N a tio n a l B ank
C hairm an P u b lic ity C om m ittee
W IN F IE L D W. SC O TT
V ice P re s id e n t
V a lle y S avings B ank
C hairm an E n te rta in m e n t and
Golf
C. W . M E S S M E R
V ice P re s id e n t
B ankers T r u s t C om pany
C hairm an R e g istra tio n C om m ittee
N o r th w e s te r n B a n k e r S e p te m b e r 19bt
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
86
• IOWA
U n fin ish e d o r n e w b u sin e ss.
R e c e iv in g in v ita tio n s fo r th e 1942 co n
v e n tio n .
A d jo u rn m e n t of th e F ifty -fifth A n n u a l
C o n v en tio n , 12:30 P . M.
F O R T H E L A D IE S
M onday, S e p te m b e r 8, 1941
E v e n in g , 6:30 P. M.—D in n e r a t Y ounke rs T ea R oom (E ig h th a n d W a ln u t
S tre e ts ), local lad ies a c tin g as h o s t
esses. M usic a n d sty le show , c o u r
te s y of Y o u n k e rs D e p a rtm e n t S tore.
T h e a te r p a rty .
NEWS
•
T u e sd a y , S e p te m b e r 9, 1941
A fte rn o o n , 1:00 P. M.— L u n c h e o n , W ak o n d a C o u n try Club, local lad ies a c t
in g as h o ste sse s.
T ra n s p o rta tio n
w ill be p ro v id e d a n d c a rs w ill leav e
th e H o te l F o r t D es M oines b e tw e e n
12:15 a n d 12:30 P. M. L ad ies m a y
d riv e th e ir o w n c a rs if th e y p re fe r.
E n te r ta in m e n t of m u sic a n d d a n c in g
fe a tu re s.
E v e n in g , 7:00 P. M.—B a n q u e t, in fo rm
al— M ezzan in e floor, H o te l F o r t D es
M oines. A fine floor sh o w fo r b o th
m e n a n d w o m en .
FO R T H E M EN
M onday, S e p te m b e r 8, 1941
A fte rn o o n , 1:00 P. M.— G olf to u r n a
m e n t—W a k o n d a C o u n try Club.
E v e n in g , 5:00 P. M.-7:00 P. M.— Social
h o u r, W a k o n d a C o u n try Club.
7:00 P. M.— B u ffet s u p p e r, W a k o n d a
C o u n try Club.
8:30 P. M.— S u p e rb te n t floor show ,
W a k o n d a C o u n try Club.
T u e sd a y , S e p te m b e r 9, 1941
E v e n in g , 7:00 P. M.— B a n q u e t, in fo rm
al— M ezzan in e floor, H o te l F o r t D es
M oines. A fine floor sh o w fo r b o th
m e n a n d w o m en .
Miss Lynch to Marry
V irg in ia C. L y n c h , em p lo y ed a s a
te lle r a t th e F a r m e r s S a v in g s B a n k in
B e a m a n fo r th e p a s t tw o a n d one-half
y e a rs, is le a v in g th e b a n k o n O ctober
1st a n d p la n s to be m a rrie d la te in th e
fall. V irg in ia ’s siste r, M ary K a th ry n ,
w h o h a s b e e n a tte n d in g th e C e n tra l
Io w a B u sin e ss C ollege in M a rsh a ll
to w n , h a s b e e n se c u re d to fill th e v a
can cy , b eco m in g effectiv e a t once.
New Federal
Reserve Member
L a s t m o n th th e M o n d am in S av in g s
B a n k w a s a d m itte d to m e m b e rsh ip in
th e F e d e ra l R e se rv e S y stem . T h e offi
c ers of th e M o n d a m in b a n k are: M. T.
M cE voy, p re sid e n t; E. E. M cC lannah a n , v ice p re sid e n t; a n d R a lp h P. M ills,
c ash ier.
Becomes Bank Examiner
J. R. A y res, H a m b u rg b a n k e r, la s t
m o n th b e g a n h is n e w d u tie s as b a n k
e x a m in e r fo r th e s ta te of K an sas.
Bank Pays Dividend
N A T IO N A L B A N K
O F W A TERLO O
THE
Member— Federal Reserve System
Member— Federal Deposit Insurance Corporation
N o r th w e s te r n B a n k e r S e p t e m b e r 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T h e d e p o s ito rs ’ tr u s te e s of th e C rom
w ell S ta te S av in g s B a n k p a id th e s ix th
10 p e r c e n t d iv id e n d to 175 h o ld e rs of
t r u s t c e rtific ate s on A u g u st 20th, C ash
ie r A. O. C a n n o n a n n o u n c e d re c e n tly .
W ith p a y m e n t of th is d iv id e n d th e
d e p o sito rs w ill h a v e re c e iv e d 80 p e r
c e n t of th e ir a c c o u n t to ta ls a t th e tim e
th e b a n k w a s re o rg a n iz e d in 1933.
A fte r a b la n k e t 50 p e r c e n t d iv id en d
th e r e h a v e b e e n six p a y m e n ts of 10
p e r c e n t of th e a m o u n ts re m a in in g
due.
S h o w in g a h e a lth y g ro w th sin ce its
re o rg a n iz a tio n , th e b a n k ’s re so u rc e s
h a v e re a c h e d a q u a rte r-m illio n d o llars,
C an n o n said.
87
Fourth Annual Meeting of Iowa
Association of Bank Auditors and Comptrollers
T H IS a sso c ia tio n co m p o sed of Io w a
b a n k a u d ito rs a n d Io w a b a n k e rs in
te r e s te d in b a n k a u d itin g a n d b a n k
c o m p tro llin g w a s fo rm e d in 1938 a n d
h e ld its first m e e tin g a t th e tim e of
th e 1938 s ta te c o n v e n tio n of th e I. B.
A. I t is affiliated w ith th e I. B. A.
T h is se ssio n is o p en to all a tte n d in g
th e I. B. A. c o n v e n tio n .
A d d ress, “I r r e g u la r itie s ”—K. J. B ride n stin e , sp ecial a g e n t, F e d e ra l B u
r e a u of In v e stig a tio n , W a sh in g to n ,
D. C.
A d d ress, “P ro b le m s of a C o u n try
B a n k ”— L. B. Cox, a s s is ta n t c a sh ie r,
F ir s t S ta te B an k , B elm o n d ; presi-
r
d en t, Io w a J u n io r B a n k e rs A sso cia
tio n .
R e m a rk s— H. C. W in d e r, a s s is ta n t
c a sh ie r, C e n tra l N a tio n a l B a n k a n d
T r u s t C om pany, D es M oines; p a s t
p re sid e n t, Io w a A sso ciatio n of B a n k
A u d ito rs a n d C o m p tro llers.
' “"i
PR O G R A M
4:00 to 6:15 P. M.— R e g is tra tio n a n d
v is itin g O ak R oom , m a in floor, H o te l
F o r t D es M oines.
6:15 P. M.— “D u tc h T r e a t” s u p p e r ($1.25
p e r p la te ), O ak R oom , m a in floor,
H o te l F o r t D es M oines.
7:15 P. M.— M eetin g c alled to o rd e r,
R. L. C arson, a u d ito r, Iow a-D es
M oines N a tio n a l B a n k a n d T r u s t
C om pany; p re s id e n t, Io w a A sso cia
tio n of B a n k A u d ito rs a n d C om p
tro lle rs.
R e m a rk s.
P r e s e n ta tio n of m e m b e rs of th e
B o a rd of G o v e rn o rs of th e A sso cia
tio n: E . H. K e te lse n , vice p re sid e n t;
a u d ito r, D a v e n p o rt B a n k a n d T r u s t
C om pany, D a v e n p o rt; C. R. C olton,
s e c re ta ry -tre a s u re r; a u d ito r, F id e lity
S av in g s B an k , O ttu m w a; J. L. S m ith ,
a u d ito r, L iv e S to ck N a tio n a l B an k ,
S io u x C ity; E . B. W ilk in so n , a u d i
to r, U n ite d H o m e B a n k a n d T r u s t
C o m pany, M ason City; M. R. S elden,
v ice p re s id e n t, M e rc h a n ts N a tio n a l
B an k , C ed ar R apids; G. R. H eflen,
c a sh ie r, F ir s t N a tio n a l B an k , Cresto n; B. P. O lsen, p a s t p re sid e n t; a u d i
to r, M u sc a tin e B a n k a n d T r u s t C om
p a n y , M u scatin e; H. C. W in d e r, p a s t
p re sid e n t; a s s is ta n t c a sh ie r, C e n tra l
N a tio n a l B a n k a n d T r u s t C om pany,
D es M oines.
A p p o in tm e n t of n o m in a tin g com
m itte e .
SPEA K ERS
W elcom e to D es M oines— F . C. A tk in s,
c a sh ie r, B a n k e rs T r u s t C om pany,
D es M oines; se c re ta ry , D es M oines
C le a rin g H o u se A sso ciatio n .
R e sp o n se —B. P. O lsen, a u d ito r, M usca
tin e B a n k a n d T r u s t C om pany, M us
c a tin e ; p a s t p re s id e n t, Io w a A sso cia
tio n of B a n k A u d ito rs a n d C o m p tro l
le rs.
G re e tin g s—H . R. Y oung, p re sid e n t,
Io w a B a n k e rs A sso ciatio n ; c a sh ie r,
A m e ric a n N a tio n a l B an k , A rlin g to n .
Special Service Division—for certain kinds
of security transactions and a variety of unusual services
Co n t in e n ta l I llinois
N ational B a n k
a n d T ru st Co m pa n y
of C h ica g o
☆
M e m b e r F e d e r a l D e p o s it In su ra n c e C o rp o ra tio n
N o r th w e s te r n B a n k e r S e p te m b e r 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
IOWA
A n n u a l re p o r t of s e c re ta ry -tre a s u re r—
C. R. C olton, a u d ito r, F id e lity S av
in g s B an k , O ttu m w a; s e c re ta ry -tre a s
u re r, Io w a A sso c ia tio n of B a n k A u d i
to rs a n d C o m p tro llers.
R e p o rt of N o m in a tin g C o m m ittee.
In tro d u c tio n of n e w officers a n d b o a rd
m e m b e rs.
U n fin ish ed b u sin e ss a n d n e w b u sin ess.
F e lic ita tio n s a n d a d jo u rn m e n t—E . H.
K etelsen , a u d ito r, D a v e n p o rt B a n k
a n d T r u s t C om pany, D a v e n p o rt; v ice
p re sid e n t, Io w a A sso c ia tio n of B a n k
A u d ito rs a n d C o m p tro llers.
NEWS
Attends Washington
Meeting
M elv in W . E llis, s ta te s u p e rin te n d
e n t of b a n k in g , w a s in W a sh in g to n .
D. C., la s t m o n th to a tte n d a m e e tin g
of th e e x e c u tiv e c o m m itte e of th e N a
tio n a l A sso c ia tio n of S u p e rv iso rs of
S ate B an k s.
T h e m e e tin g w a s called b y L eo T .
C row ley, c h a irm a n of th e F e d e ra l D e
p o sit In s u ra n c e C o rp o ra tio n , a n d w a s
a tte n d e d b y su p e rv is o rs of s ta te b a n k s
in 29 sta te s. T h e se ssio n w a s p re lim
in a r y to th e a n n u a l c o n v e n tio n of th e
A Sincere Welcome to the . . .
Iowa B a n k er s
A s s o c ia t io n
55th Annual Convention
Septem ber 8-9-10
Des Moines
W e hope th a t you w ill d rop in an d see us
an d we assure you of a h e a rty welcome.
A sso ciatio n , h a v in g a m e m b e rsh ip
fro m a ll 48 s ta te s, w h ic h is to b e h e ld
in St. P a u l on S e p te m b e r 2 4th to 27th.
In c o m p a riso n w ith th e w ar-m in d ed n e ss of th e e a s te rn s ta te s, M r. E llis
said h e w a s fo rced to a d m it a g e n e ra l
a p a th y in h is o w n s ta te of Io w a r e
g a rd in g th e sale of d e fe n se b o n d s, u p o n
w h ic h th e tr e a s u r y d e p a rtm e n t is d e
p e n d in g p rim a rily on th e b a n k s. M an y
b a n k s a n d o th e r in s titu tio n s a re in
a u g u r a tin g p a y ro ll d e d u c tio n p la n s to
a s s is t m e m b e rs of th e ir staff in ac
q u irin g th e s e b o n d s, th e Io w a s u p e rin
te n d e n t of b a n k in g p o in te d out.
R e p re s e n ta tiv e s fro m M r. M orgenth a u ’s office in a tte n d a n c e a t th e W a s h
in g to n c o n fe re n ce h a d as th e ir th e m e
th a t p u rc h a s e of th e s e b o n d s is e sse n
tia l d e fe n se a c tio n fo r e v e ry in d iv id
u al, n o t o n ly fro m in v a sio n b y a n
e n e m y b u t also th e d a n g e r of inflatio n .
D efen se b o n d s a re o n sa le a t p o st
offices a n d b a n k s, th e b a n k s h a v in g
sold to d a te s u b s ta n tia lly 75 p e r c e n t
of th e sales th a t h a v e b e e n m ade.
New Panhandling Plea
A n O ttu m w a b a n k e r som e tim e ago
w a s acco sted w ith a n e w p a n h a n d lin g
plea. T h e g e n ia l a n d p o rtly co lo red
w a y fa re r w h o e n te re d th e b a n k to a sk
fo r fin an cial a ssista n c e s ta r te d b y a p
p ro a c h in g h im as “M r. P re s id e n t,”
a n d w h e n to ld th a t w as w ro n g , d e
sc e n d e d th r o u g h a se rie s of r a n k s to
“b o ss,” a n d th e n e x p la in e d t h a t h e
fo rm e rly liv e d in St. L o u is b u t th a t
tim e s w e re g e ttin g to u g h , a n d th e go
in g w a s p r e tty h a rd , so, h e said, “I
ju s t to ld m y w ife, y o u ta k e c a re of th e
k id s a n d I ’ll go o u t a n d s h ift fo r m y
se lf.” T h e b a n k e r d ecid ed th e p lea
w as w o r th a n e w dim e.
New Building Program
Ca p it a l Cit y St a t e
Bank
R olfe O. W agner, P re sid e n t
R aym ond G. M iller, V ice P re sid e n t
Geo. W. R ich ter, V ice P re sid e n t
J. N. Coffey, C ashier
Geo. R adcliffe, Asst. C ashier
F re d C. Sutton, Asst. C ashier
C. A llen Evans, Asst. C ashier
S i x t y - t h r e e Y e a rs o f C o n s e r v a tiv e B a n k i n g
M em b e r F e d e ra l D e p o sit In s u ra n c e C orp o ratio n
N o r th w e s te r n B a n k e r S e p t e m b e r 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
B. A. G ro n sta l, p re s id e n t of th e
C ouncil B luffs S ta te B an k , C ouncil
B luffs, a n d M rs. G ro n sta l a re sp e n d in g
som e tim e a t th e ir c o tta g e a t L ak e
O koboji. M r. G ro n sta l r e p o rts th a t th e
c o n s tru c tio n of th e ir n e w b a n k in g
h o m e is p ro g re s s in g n ic e ly a n d th e y
a n tic ip a te th a t it w ill be c o m p leted b y
N o v e m b e r 1st. T h e lo c a tio n of th e
n e w b a n k is on th e sam e site as th e
old b a n k , w h ic h w a s to r n dow n. T h e
C ouncil B luffs S av in g s B a n k is th e old
e st b a n k in Iow a, h a v in g b e e n e sta b
lish e d in 1856.
A ccepts Bank Position
W illia m J. T ie rn a n , w h o h a s b e e n
em p lo y ed b y th e N ew H a m p to n liq u o r
sto re fo r se v e n y e a rs, re c e n tly r e
sig n e d h is p o sitio n to a c c e p t one in th e
S e c u rity S ta te B a n k of th a t city.
F R A N K W A R N E R , SE C R E TA R Y O F T H E IO W A B A N K E R S A SSO C IA TIO N
O n the Job for Twenty-five Years
W E N T Y -F IV E y e a rs ago o n S e p te m b e r 1, 1916, F r a n k
W a r n e r w a s ele c te d S e c re ta ry of th e Io w a B a n k e rs
A sso ciatio n .
I n th e S e p te m b e r 1916 issu e of th e N orthw estern
B anker it said:
T
“F ran k W arner, w h o has b een con n ected w ith the
L eavitt & Joh nson N ational B ank and Farm ers Loan
& T rust Com pany, W aterloo, Iow a, for the past three
years, has b een elected S ecretary of the Iow a B an kers
A ssociation to succeed P ercy W. H all, resigned. Mr.
W arner graduated from th e U n iv ersity of Iow a in
1912, and after teach in g school for a year and a half,
he becam e associated w ith the banks m entioned
above. H e started in at the bottom and finally be
cam e gen eral m anager of th e L ea v itt & Joh nson N a
tion al Bank and assista n t to the p resident. Mr. W ar
n er has fam iliarized h im self w ith n ew legislation ,
and has g iv en several lectu res before schools on the
F ed eral R eserve A ct. Mr. W arner has a w id e acquain
tance w ith th e bankers of Iow a, w hich , coupled w ith
h is en ergy and capabilities, w ill m ake him a m ost
efficient. Secretary of one of the largest B ankers A s
sociations in th e U nited S tates.”
A n d n o w a f te r th e s e 25 y e a rs h a v e slip p e d b y —an d ,
so q u ic k ly it seem s—w e k n o w th a t h e h a s m ad e a g re a t
re c o rd as S e c re ta ry of th e Io w a B a n k e rs A sso ciatio n —a
re c o rd re f e r r e d to b y e v e ry s ta te b a n k e r s ’ a sso c ia tio n in
th e c o u n try .
H e h a s m ad e th e Io w a B a n k e rs A sso ciatio n a stro n g ,
w ell-o rg an ized , co h esiv e g ro u p of b a n k e rs , w o rk in g fo r
th e b e s t in te r e s ts of th e ir d e p o sito rs, sto c k h o ld e rs a n d
officers.
H e h a s p la c e d th e in flu en ce of th e Io w a B a n k e rs A sso
c ia tio n on th e sid e of h o n e s t a n d h e lp fu l le g isla tio n in
s ta te a n d n a tio n a l affairs.
H e h a s a lw a y s b e e n m o d e st—-too m o d e st— a b o u t ta k in g
c re d it fo r w h a t h e h a s d o n e in a ss is tin g a n d s e rv in g th e
b a n k e rs of Io w a w ith th e ir e v e r o c c u rrin g p ro b lem s.
T h a t h e m a y c o n tin u e fo r m a n y m o re y e a rs to lead,
g u id e a n d c o u n se l th e Io w a B a n k e rs A sso ciatio n as its
S e c re ta ry is th e sin c e re w is h of h is m a n y m a n y frie n d s
th ro u g h o u t Io w a a n d th e e n tire n a tio n .
N o r th w e s te r n B a n k e r S e p t e m b e r 19hl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
90
—• I O W A
Bankers Attend Celebration
Q uite a la rg e n u m b e r of Io w a b a n k
e rs g a th e re d a t W a te rlo o la s t m o n th
as g u e sts of th e R a th P a c k in g Com
p a n y in c e le b ra tin g th e ir 50th a n n i
v e rs a ry . W h ile th e c e le b ra tio n c o n
tin u e d fo r fo u r days, th o se g ro u p s w h o
w e re g u e sts on one d ay c o n siste d
of fa rm e rs, b u sin e ss a n d p ro fe ssio n a l
m en . A m o n g th e b a n k e rs o u tsid e of
W a te rlo o a tte n d in g w ere: W . W . Blasie r, p re sid e n t, F a r m e r s S ta te B ank,
Je su p ; V. W . Jo h n so n , p re sid e n t, F ir s t
N a tio n a l B an k , C edar F a lls; R o g er
NEWS
L e a v itt, d ire c to r, C ed ar F a lls T r u s t &
S a v in g s B an k , C ed ar F a lls; F . B. M il
ler, p re sid e n t, C ed ar F a lls T r u s t &
S a v in g s B an k , C ed ar F a lls; S. E . Coq u ille tte , p re sid e n t, M e rc h a n ts N a tio n
al B an k , C ed ar R ap id s; S. C. P id g eo n ,
vice p re sid e n t, B a n k e rs T r u s t C om
p a n y , D es M oines; p re s id e n t, D es
M oines C h am b er of C om m erce; J. R.
C apps, c a sh ie r, C e n tra l N a tio n a l B a n k
& T r u s t Co., D es M oines; N o rm a n B.
S haffer, v ice p re s id e n t, C o n tin en talIllin o is N a tio n a l B a n k & T r u s t Co.,
C hicago; W a lte r B. A llen, v ice p re s i
d e n t, C o n tin e n ta l - Illin o is N a tio n a l
A Valuable Correspondent Connection
...with Sioux City’s Largest Bank
Your item s w ill b e h an d led efficiently b y a well-trained personnel
that is exp erien ced in m eeting the requirem ents of banks d em an d
ing prompt service.
STATEMENT OF CONDITION
at the close of business August 11, 1941
Resources
Cash and Due from Banks...................................................... $ 4,408,517.45
U. S. Government Securities..................................................... 3,430,093.75
Municipal and Other Marketable Bonds...............................
289,171.65
Stock in Federal Reserve Bank................................................
18,000.00
Loans and Discounts.................................................................. 2,745,595.02
Banking House..............................................................................
115,006.26
Interest Earned not Collected...................................................
33,207.62
Total Resources................................................................$11,039,591.75
Liabilities
Capital ........................................................................................... $
300,000.00
Surplus ...........................................................................................
300,000.00
Undivided Profits..........................................................................
76,464.58
Reserves .........................................................................................
19,837.51
Interest Collected not Earned.....................................................
4,501.45
Demand and Time Deposits....................................................... 10,338,788.21
Total
Liabilities............................................................... $11,039,591.75
The outgrowth of a b u sin ess founded over 68 y ears a g o — continu
ing its service, without interruption, through depression and
prosperity.
OFFICERS
R. R.
J. W.
E. A.
E. H.
Brubacher, President
Van Dyke, Vice Pres.
Hoffman, Vice Pres.
Spiecker, Vice Pres.
E. E. Erickson, Vice Pres. & Cashier
C. A. Johnson, Ass't Cashier
J. Wm. Van Dyke, Ass't Cashier
J. D. Shinkle, Ass't Cashier
The Toy National Bank
Sioux City, Iow a
M em b er 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
N o r th w e s te r n B a n k e r S e p te m b e r 194-1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
B a n k & T r u s t Co., Chicago; a n d F r a n k
W a rn e r, s e c re ta ry , Io w a B a n k e rs A s
so ciatio n , D es M oines.
Building Nears Completion
T h e fin ish in g to u c h e s b y th e co n
tr a c to r a re n o w b e in g m ad e a n d if a ll
goes a c c o rd in g to sc h e d u le th e H a rtw ic k S a v in g s B a n k sh o u ld be in its
n e w q u a r te r s w ith in th e n e x t t h ir ty
d ay s o r so.
I t w ill be re m e m b e re d th a t a fire
la s t w in te r d e stro y e d th e b u ild in g
n e x t d o o r to th e H a rtw ic k b a n k a n d
b a d ly d a m a g e d th e e a s t w a ll of th e
b a n k . F ir s t p la n s w e re to te a r o u t th is
w a ll a n d re m o d e l th e b u ild in g . B u t
w h e n c o n tra c to rs g o t b u sy w ith e s ti
m a te s, it w a s fo u n d th a t b y a d d in g
v e ry little m o re m o n e y to th e p ro je c t,
a n e w b u ild in g co u ld be erected , a n d
th is w a s d ecid ed upo n .
A ccepts Bank Position
Ja m e s B re ie r b e g a n w o rk la s t m o n th
a t th e F a r m e r s N a tio n a l B a n k of W in
field, su c c e e d in g M ay n e C o u rte r, w h o
re sig n e d h is p o sitio n to fa rm . M r.
B re ie r is a 1939 g ra d u a te of th e W in
field h ig h sch o o l a n d h a s b e e n e m
p lo y ed a t th e W in field B en teco s to re
fo r m o re th a n a y e a r.
Former Banker Dead
Sam D esp res, fo rm e r E lm a , Iow a,
b a n k e r w h o once o p e ra te d one of th e
la rg e s t p riv a te b a n k s in th e sta te , d ied
la s t m o n th in L os A n g eles, C alifo rn ia.
injured in Crash
W . G. W a lra th , 76, O elw ein b a n k e r,
w a s ta k e n to a B ra in e rd , M in n eso ta,
h o sp ita l re c e n tly a fte r su ffe rin g s e ri
ous in ju rie s in a n a u to co llisio n w h ic h
to o k p lace te n m iles n o r th of A itk in ,
M in n eso ta. M r. W a lr a th w a s p in n e d
b e n e a th th e car.
Defense Lobby Display
P ic tu re d b elo w is a lo b b y d isp la y to
p ro m o te th e sale of U n ite d S ta te s S av
in g s B o n d s to a id in n a tio n a l defense,
as it a p p e a rs in th e lo b b y of th e F ir s t
N a tio n a l B an k , C ed ar F a lls. V. W .
Jo h n so n , p re s id e n t of th e b a n k , say s
th e d isp la y h a s c re a te d c o n sid e ra b le
fa v o ra b le c o m m e n t am o n g c u sto m e rs
of th e in s titu tio n , a n d “h a s no d o u b t
c o n trib u te d s tro n g ly to th e fa c t th a t
w e h a v e sold a b o u t on e-h alf th e to ta l
of su c h b o n d s p la c e d th r o u g h th e local
p o st office a n d C ed ar F a lls b a n k s .”
T h e so ld ie r in th e p ic tu re is T e c h n i
cal S e rg e a n t H o lg a r H . B ru h n , w h o
h a s b een a m e m b e r of th e local N a
tio n a l G u a rd u n it, 133rd I n f a n tr y
91
-•
IOWA
NEWS
•fro m n e ig h b o rin g cities. T h e e n te r
ta in m e n t in c lu d e d golf a t 4 o’clock fo l
lo w ed b y d in n e r a t th e c o u n try clu b
h o u se a t h a lf p a s t six. C overs w e re
laid fo r th irty -six .
T h e g u e sts in clu d ed : H. N. B oyson,
v ice p re s id e n t of th e M e rc h a n ts N a
tio n a l B an k , C ed ar R ap id s; A. T. Donhow e, vice p re s id e n t of th e C e n tra l
N a tio n a l B a n k a n d T r u s t C om pany;
E. W . Jo n e s, v ice p re sid e n t, a n d E v
e r e tt M. G riffith, a s s is ta n t v ice p re s i
d e n t of th e Iow a-D es M oines N a tio n a l
B a n k a n d T r u s t C om pany, all of Des
M oines; R u d y S c h ro e d e r a n d W a rd
L io n s clu b of S io u x C ity a t its lu n c h
eo n in th e W e st H o te l in S io u x C ity
la s t m o n th on A m e ric a n p u rc h a s e s of
gold. A t th e m e e tin g th e clu b r e
ceiv ed a p la q u e fro m th e in te rn a tio n a l
fo r its p a r t in a re c e n t m e m b e rsh ip
cam p aig n .
Entertain Bankers
Association
B elle P la in e w a s h o s t to th e b i
m o n th ly m e e tin g of th e B e n to n C oun
ty B a n k e rs A sso c ia tio n re c e n tly w h e n
th e g ro u p e n te r ta in e d se v e ra l g u e sts
R o u t e y o u r W is c o n s in ite m s
DIRECT TO THE PDIli
of Prompt Collection!
D isp la y in th e lo b b y o f th e F ir s t
N a tio n a l B a n k , C ed ar F a lls
H e a d q u a rte rs C om pany, fo r th e p a s t
n in e y e a rs, h a v in g se rv e d in all o th e r
n o n -co m m issio n ed r a n k s u p to th e one
h e n o w holds. S e rg e a n t B ru h n a n d
h is f a th e r h a v e b e e n c lie n ts of th e
F ir s t N a tio n a l in C edar F a lls fo r a
n u m b e r of y e a rs. T h e s e rg e a n t w a s
se le c te d to h a v e h is p ic tu re above th e
p o s te r b e c a u se of h is so ld ie rly a p p e a r
an ce a n d b e a rin g .
Ü«
"Direct to the p o in t Mbecause
— the First Wisconsin serves
as Milwaukee correspondent
fo r over SS per cent o f nil
Wisconsin banks! UNIQUE
statewide "coverage" !
To Open New Bank
P la n s a re b e in g m ad e fo r th e d isc o n
tin u in g of o p e ra tio n of th e L a k e C ity
F in a n c e C om pany, also th e B adenW h e e la n d -G u in ey In s u ra n c e A g en cy
in L a k e City.
T h e Io w a S ta te B a n k in g D e p a rtm e n t
h a s g r a n te d J. F . B ad en of L a k e C ity
a c h a r te r fo r a n e w b a n k a t In d e p e n
dence, Iow a, w h ic h , a c c o rd in g to Mr.
B ad en , w ill be o p en ed a b o u t S e p te m
b e r 15th. T h e n e w in s titu tio n w ill be
k n o w n as th e S e c u rity S ta te B ank,
w ith J. F. B ad en , p re sid e n t; R o g er
W h e e la n d , v ice p re s id e n t, a n d J o h n
C orcon of In d e p e n d e n c e , c a sh ie r.
A ll in s u ra n c e policies w ill be d e liv
e re d b y th e firm to th e c u sto m e rs, a n d
th e p o licy e x p ira tio n d a te s w ill be
tu r n e d o v e r to a n d se rv ic e d b y th e firm
p u rc h a s in g th e agency.
Addresses Lions Club
C. R. G ossett, p re s id e n t of th e Se
c u r ity N a tio n a l B an k , a d d re sse d th e
A First Wisconsin account is your master
key to prompt, efficient collection of
Wisconsin checks and drafts. This hank
is the largest in the Wisconsin-IowaDakota-Minnesota are a . . . serving more
than 500 Wisconsin correspondents, as
well as hanks in key cities of neighbor
ing states. Your inquiries are invited.
BA N K S and B A N K E R S D IV ISIO N
G eorge T . C a m p b e ll................................... V i c e P r e s i d e n t
R ic h ard J. L a w le s s ...............A s s i s t a n t V i c e P r e s i d e n t
D o n ald A. H a r p e r ................. A s s i s t a n t V i c e P r e s i d e n t
RESOURCES OVER $285,000,000
Member of the Federal
Deposit Insurance Corporation
liflO M L
N s
n n
s
:
ss%
p|
M I L W â U l l ^ '
%
'
..
N o r th w e ste r n B a n k e r S e p te m b e r 1 9 i l
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
92
• IO WA
H a tte r of M arengo; J. R. V e rm a z e n
a n d G eorge B en d a of C helsea; W . W .
S h a lle n b e rg e r a n d B en R o u d a b u sh of
H a rtw ic k ; H e n ry V on A sw ege, P e te
De M u e le n a e re a n d tw o o th e r d ire c to rs
fro m V ictor; R ay A d a ir a n d H u b e rt
K u b ic e k of T am a.
Receive County Funds
R u th v e n S ta te B a n k w a s m a d e a
d e p o sito ry fo r P a lo A lto c o u n ty fu n d s
a t a re c e n t m e e tin g of th e c o u n ty su
p e rv iso rs. U n d e r th is a rra n g e m e n t,
p a rtie s liv in g in R u th v e n o r th e to w n
NEWS
sh ip of L o st Isla n d , H ig h la n d a n d Sil
v e r L a k e c a n p a y th e ir ta x e s a t th e
R u th v e n b a n k .
Night Depository Installed
In s ta lla tio n of a n “a fte r-h o u r d e p o si
to ry se rv ic e ” fo r c u sto m e rs of th e
U n io n S to ry T r u s t a n d S a v in g s B a n k
of A m es h a s b e e n co m p leted , it w a s
a n n o u n c e d re c e n tly b y F r a n k H.
S c h le ite r, c ash ier.
T h e n e w se rv ic e e q u ip m e n t c o n sists
of a h e a v y b ro n z e -trim m e d re c e iv e r
b u ilt in to th e w a ll of th e b a n k in g
C o rn an d N atio n al
D efen se
A m erica n eed s pork, lard, beef a n d d airy
products. These "body-building”, "vitam in-rich"
foods produced m ost econom ically in Iow a an d
adjoining states, are play in g a lead in g N ational
Defense role by im proving the health of our
nation.
The production of livestock products is very
larg ely d ependent on corn - - the most w idely
used livestock feed. This y e a r about one-half
of the farm ers in Iow a are grow ing Pioneer
corn. They know from experience that Pioneer
gives highest possible yields of excellent feed.
Those extra bushels of Pioneer corn will m ean
extra pounds of livestock products need ed for
a m ore effective N ational Defense.
P io n e e r H i-B r e d C o r n C o.
DES MOINES, IOW A
G arst & T h o m a s
C O O N RAPIDS, IOW A
N o r th w e s te r n B a n k e r S e p t e m b e r 19bl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
h o u se on th e M ain S tre e t side. F ro m
th is re c e iv e r o r d e p o sito ry h ead , th e re
e x te n d s th r o u g h th e b u ild in g w a ll to
th e in sid e of th e b a n k b u ild in g a ste e l
c h u te w h ic h e n te rs th e e le c tric a lly
p ro te c te d safe lo cated w ith in th e w o rk
sp ace of th e b a n k .
Helen Wilcox W eds
T h e m a rria g e of M iss H e le n W ilco x
of D es M oines, d a u g h te r of M r. a n d
M rs. S te p h e n W ilco x of E a g le G rove,
Io w a, to L y le D aw son, so n of M r. a n d
M rs. P a u l S c h u ltz of D es M oines, to o k
p lace la s t m o n th in O m aha.
M rs. D aw so n is em p lo y e d b y th e
Iow a-D es M oines N a tio n a l B a n k a n d
M r. D aw so n is a n em p lo y e in th e
c re d it d e p a rtm e n t a t th e R e g i s te r a n d
T rib u n e.
Clayton County Meeting
A d ra s tic c u t in n o n -d efen se e x p e n
d itu re s a n d th e u se of ta x e s to p a y a
la rg e p o rtio n of d efen se co sts as a n e
c e ssity if th is c o u n try is to escap e
in fla tio n in th e fu tu r e w e re u rg e d b y
H o y t Y o u n g of A rlin g to n , p re s id e n t of
th e Io w a B a n k e rs A sso ciatio n , in a
ta lk b e fo re th e C lay to n C o u n ty B a n k
e rs A sso c ia tio n la s t m o n th in G u tten b erg .
T w o o th e r ta lk s on th e p ro g ra m
w e re g iv e n b y G u tte n b e rg b u sin e ss
m en.
W ilb u r C ern y , g ro c e ry p ro
p rie to r, sp o k e o n th e sm a ll to w n ,
w h ile C h a rle s M illh am , e d ito r of th e
G u tte n b e rg P ress, sp o k e o n th e im
p o rta n c e of p u b lic re la tio n s.
S h o rt
ta lk s also w e re g iv e n b y A. T. Donhow e, v ice p re s id e n t of th e C e n tra l
N a tio n a l B a n k of D es M oines a n d
p ro m in e n tly m e n tio n e d as p o ssib le
p re s id e n t of th e Io w a B a n k e rs A sso
c ia tio n n e x t y e a r, a n d b y H a n s Boyson, M e rc h a n ts N a tio n a l B a n k of Ce
d a r R ap id s, lo n g a fa m ilia r fig u re in
b a n k in g in th is se c tio n of th e sta te .
Ja m e s A d am s, c a sh ie r of th e b a n k
a t E d g ew o o d , w a s n a m e d p re s id e n t of
th e c o u n ty a sso c ia tio n fo r th e co m in g
y e a r, w h ile C. A d ria n R iv e la n d of Lua n a w a s e le v a te d fro m th e p o st of sec
r e ta r y to th a t of v ice p re sid e n t. R. E.
A r th u r of E d g ew o o d w a s ele c te d sec
r e ta r y of th e asso ciatio n . A d am s su c
ceeds F. J. O eh m k e of G u tte n b e rg ,
w h o h a s b een p re s id e n t of th e b a n k
e rs a sso c ia tio n fo r th e p a s t y ear.
M ore th a n a h a lf h u n d re d b a n k e rs
fro m C lay to n a n d F a y e tte c o u n tie s a n d
a n u m b e r of o th e r g u e sts a tte n d e d th e
m e e tin g , w h ic h w a s h e ld in th e G u t
te n b e rg M u n ic ip a l B u ild in g . T h e in v i
ta tio n of E d g ew o o d fo r th e n e x t a sso
c ia tio n m e e tin g w a s a c c e p te d b y the
asso ciatio n .
They W ill
Attend
the
Iowa
J O H N A. C H A N G S T R O M
V ice P re s id e n t
O m ah a N a tio n a l B ank, O m aha
F R A N K C. W E L C H
P re s id e n t
P e o p le s S av in g s B ank, C ed ar R ap id s
F R E D D . C U M M IN G S
D ro v e rs N a tio n a l B ank, C hicago
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Convention
S. E. C O Q U I L L E T T E
P re sid e n t
M erc h a n ts N a tio n a l B ank
C edar R apids
W A L T E R E. V IE T H
V ie th , D u n can & W ood
D a v en p o rt
R. J.
R IC H A R D S O N
P re s id e n t
F e d e ra l H om e L oan B ank, D es M oines
A L B E R T J. R O B E R T S O N
V ice P re s id e n t
Io w a -D e s M ein e s N a tio n a l B ank
D. B. C A S S E T T
P re s id e n t
In te r- S ta te F in a n c e C orp., Dubuque
94
G oes to Galva
W . S. M ason, fo rm e rly of U nion,
Io w a, w h o h a s b e e n em p lo y ed b y th e
R e c o n stru c tio n F in a n c e C o rp o ra tio n
in C hicago sin ce 1933, h a s re sig n e d h is
p o sitio n to beco m e e x e c u tiv e vice
p re s id e n t of th e F ir s t N a tio n a l B a n k of
G alva, Illin o is.
P r io r to h is w o rk in C hicago, Mr.
M ason w a s a sso c ia te d w ith th e Io w a
S ta te B a n k in g D e p a rtm e n t fo r th r e e
y e a rs, a n d h e w a s a fo rm e r c a sh ie r
of th e U n io n S a v in g s B an k .
Drake Appointed Secretary
C laude E. D rak e, fo rm e rly of Radcliffe, h a s b e e n a p p o in te d b y S u p e rin
te n d e n t of B a n k in g M. W . E llis,
C h a rle s C ity, as h is s e c re ta ry . M r.
D rak e, w h o a ssu m e d h is d u tie s r e
c e n tly , h a s b e e n em p lo y e d in th e C ity
N a tio n a l B a n k of W a sh in g to n , D. C.,
fo r th e la s t fo u r y e a rs.
Banker's Will Probated
T h a t A re N o w
M a k in g N e w s
NEWS
A n e w lo w - c o s t d e s k -m o d e l
passbook posting m achine . . . C
FOR ALL BANK
A high-speed ledger posting
machine providing automatic
count of items posted................ Q
DEPARTMENTS
A b ig - c a p a c ity d e s k -m o d e l
adding-subtracting m a c h in e ..
A new m achine for scheduling
installm ent loan paym ents and
due d ate s........................................ [[]
A ny B u rrough s d isp lay reveals m any
n ew m ach in es and m any n ew d e v e lo p
m ents that are real n ew s for bankers
w h o are stu d yin g n ew b a n k in g o p p o r
tun ities or are co n cern ed w ith savin g
tim e, effort and o p era tin g costs.
A low -cost desk-m odel m a
chine for receipting installm ent
p aym en ts.......................................... Q
A high-speed mortgage loan
posting m achin e........................... | |
A fast, portable, low -cost proof
m achin e............................................ £
C o n v in c in g ev id en ce that th ese m a
ch in es squarely m eet to d a y ’s n eed s is
the fact that so far in 19 4 1 banks have
b o u g h t m ore B u rrough s than in a lik e
p erio d o f any year in the past d ecade.
Typewriter accounting m achine
fo r re c o rd s re q u irin g typ ed
descriptions..................................... Q
A low -cost m achine for writing
loan and discount and other
related records.............................. £
For n ew s o f the n ew est B urroughs
bank m ach in es and d evelo p m en ts, call
the lo c a l B u rrough s office, or w rite —
•
•
•
Complete information on these
and other Burroughs m achines
for banks m ay be obtained from
your local Burroughs office or by
writing direct to Detroit.
BURROUGHS ADDING MACHINE CO.
6811 S econd Avenue, D etro it, M ichigan
uéhs
LGL
N o r th w e ste r n B a n k e r S e p t e m b e r 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
IS
T h e w ill of C. F . B u tle r, p re s id e n t
of th e S p rin g v ille S av in g s B an k , one
of th e fe w re m a in in g p riv a te b a n k s in
Io w a, w a s p ro b a te d in C ed ar R ap id s
la s t m o n th , s e ttin g o u t b e q u e sts in e x
cess of $25,000. M r. B u tle r d ied a t h is
h o m e J u ly 27th.
M ajo r a llo tm e n ts w e re th o se of
$5,000 e ach to Coe College a t C ed ar
R ap id s a n d C o rn ell C ollege a t M o u n t
V ern o n . T h re e $1,500 s tip u la tio n s w e re
in clu d ed , fo r th e c h ild re n ’s h o m e a n d
M ercy a n d St. L u k e h o s p ita ls of C edar
R ap id s.
T h e H o m e fo r A g ed W o m en , S u n
sh in e M ission, th e Y. M. C. A. a n d
Y. W . C. A. also cam e in fo r b e q u e sts,
in a d d itio n to t r u s t fu n d s p ro v id e d fo r
h is frie n d , S am u el Jam es., J r , a n d tw o
fo s te r sons, C h a rle s a n d F re d e ric k .
Sponsor 4-H Show
T h e C itizen s S ta te B a n k a t H um esto n sp o n so re d a “4-H a n d V o catio n al
A g ric u ltu ra l B eef C alf S h o w ” a t
H u m e sto n on A u g u st 16, 1941. P riz e s
offered b y th e b a n k w e re $5 fo r first
p riz e on each b reed ; seco n d p riz e $3;
th ir d p riz e $2; a n d a ll o th e rs $1 each.
T h is is a n a n n u a l affair. O fficers of
th e C itizen s S ta te B a n k are: P re s id e n t,
E . S. W illiam s; v ice p re s id e n t, D. S.
M oore; c a sh ie r, G eorge R. G arto n ; a n d
a s s is ta n t c a sh ie r, H. L. M ark s.
New Bank Building
W o rk is u n d e r w a y in th e b u ild in g
of th e n e w h o m e of th e L o n e T re e
S av in g s B an k , w h o se b u ild in g w a s d e
s tro y e d b y fire la s t w in te r.
T h e n e w b u ild in g is b e in g e re c te d a t
th e site of th e old one, b u t w ill co v er
a little m o re te r r ito r y th a n th e one
d e stro y e d b y fire. I t w ill b e a ones to ry b u ild in g .
See Them
at the
Iowa
Convention
C ity
E. M. W A R N E R
P re s id e n t
N a tio n a l B an k , C lin to n
J. C. W IL L IA M S
V ice P re s id e n t
C om m erce T r u s t Co., K a n sa s C ity
W . E . R E S S E G U IE
C o n tin e n ta l-Illin o is N a tio n a l B ank
C hicago
S. C. P I D G E O N
V ic e P re s id e n t
B an k e rs T r u s t Co>, D es M o in es
A. W . H U E Y
A s s is ta n t S e c re ta ry
M iss is sip p i V a lle y T ru s t Co.
St. L o u is
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M . C. H O O K , JR .
M e rc a n tile C om m erce B ank & T r u s t Co.
St. L ouis
L A V E R N E M. BA RLO W
M an a g e r
G oodbody & Co., D es M oines
H EN R Y SCARBOROUGH
S carb o ro u g h & Co., C hicago
96
—• I O W A
NEWS
•-
New Night Depositories
Pioneer Banker Dead
N ig h t d e p o sito rie s soon w ill b e in
sta lle d a t th e U n io n B a n k & T r u s t Co.
a n d th e F id e lity S a v in g s B a n k of O t
tu m w a , officers of th e in s titu tio n s a n
n o u n c e d re c e n tly .
T h e s tro n g boxes, h a v in g o p e n in g s
fo r m a k in g b a n k d e p o sits fro m th e
o u tsid e, a re d e sig n e d to a cco m m o d ate
c u sto m e rs w h o a re u n a b le to re a c h
th e b a n k s b e fo re c lo sin g tim e.
T h e n e w F a r m e r s & M e rc h a n ts S av
in g s B a n k also w ill h a v e su c h a d e
p o sito ry , it w a s a n n o u n c e d re c e n tly .
W ill R e c k n o r, p io n e e r C re sto n m e r
c h a n t, b a n k e r a n d civic lead er, d ied a t
h is h o m e th e r e la s t m o n th .
M r. R e c k n o r h a d o p e ra te d a g ro
c e ry sto re fo r 45 y e a rs a n d w a s a c tiv e
in th e b u sin e ss u p to th e tim e of h is
illn ess.
R e c k n o r se rv e d tw o te rm s o n th e
C re sto n c ity co u n cil, d u rin g w h ic h
tim e h e w a s c re d ite d w ith c re a tin g
se v e ra l n e e d e d re fo rm s in th e c ity ’s
fin an cial s tru c tu re . T h e p io n e e r m e r
c h a n t w a s p re s id e n t of th e F ir s t N a
tio n a l B a n k of C re sto n fo r m a n y y e a rs
a n d w a s c h a irm a n of its b o a rd of d i
re c to rs u n til D ecem b er, 1938.
Defense Contract Office
V. L. C lark , of th e P e n ro d , J u r d e n &
C la rk Co., K a n sa s C ity, M isso u ri, h a s
b e e n a p p o in te d d e p u ty c o o rd in a to r,
a n d G eorge B eese of th e F is h e r G o v er
n o r Co. of M a rsh a llto w n , Io w a, h a s
b e e n a p p o in te d d e p u ty m a n a g e r of th e
D efen se C o n tra c t S erv ice in D es
M oines.
T h is office is lo cated a t 505 C ro ck er
B u ild in g a n d w a s o p e n e d A u g u st 11,
1941.
Bank Clearings High
B a n k c le a rin g s in S io u x C ity fo r
J u ly w e re m o re th a n $4,000,000 m o re
th a n fo r th e c o rre sp o n d in g m o n th a
y e a r ago. C le a rin g s so fa r th is y e a r
w e re a lm o st $16,000,000 m o re th a n th e
a m o u n t of m o n e y c le a re d d u rin g th e
first se v e n m o n th s of 1940.
C le a rin g s fo r Ju ly , 1941, w e re $20,517,341 w h ile in J u ly , 1940, $16,294,037.91 w e re cleared . So fa r th is y e a r,
$127,383,714.39 h a s m o v ed th r o u g h th e
S io u x C ity c le a rin g h o u se c o m p a re d to
c le a rin g s of $111,455,508.08 fo r th e first
se v e n m o n th s of 1940.
5
o many of our
correspondents think of
M ercantile-C om m erce
as their
frien d in St. Louis
. . . because of
M ercantile-C om m erce
Service.
MERCANTILE-COMMERCE
B a n k an d T ru st C o m p a n y
SAINT
LOUIS
New Bank President
H o w a rd A. O’L e a ry of M aso n C ity
a n d C lear L ak e, h a s b e e n e le c te d p re s i
d e n t of th e V e n tu ra S ta te B a n k to su c
ceed Ja c o b S to rk , w h o d ied re c e n tly .
Stockholders' Meeting
A ll d ire c to rs of th e F ir s t T r u s t &
S av in g s B a n k of A n th o n w e re r e
ele c te d a t a s to c k h o ld e rs ’ m e e tin g h e ld
re c e n tly , a t w h ic h th e y e a r ’s b u sin e ss
clo sin g J u n e 30th w a s re v ie w e d a n d
th e y e a r c o n sid e re d v e ry sa tisfa c to ry .
A d iv id e n d w a s d e c la re d a n d p aid.
D ire c to rs re-elected w e re E a r l A.
H o ffm an , A rn o ld W . P e te rs e n , P e te r
B. J a n s e n , F r a n k C. G o th ier, F r a n k
H la d ik a n d H o m e r M. B oyd. T h e d i
re c to rs m e t a f te r th e sto c k h o ld e rs ’ se s
sio n a n d ch o se th e fo llo w in g officers:
E a r l A. H o ffm an , p re sid e n t; A rn o ld
W . P e te rs e n , first v ice p re sid e n t;
F r a n k H la d ik , seco n d v ice p re sid e n t;
H o m e r M. B oyd, c a sh ie r.
J. W illia m V an D yke, E . H. S p ieck er
a n d M r. H o ffm an of th e p a r e n t b a n k
a t S io u x C ity a tte n d e d th e sto c k h o ld
e r s ’ m e e tin g , to g e th e r w ith a ll of th e
local d ire c to rs.
Attend County Meeting
MEMBER
FEDERAL
DEPOSIT
N o r th w e s te r n B a n k e r S e p t e m b e r 19M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
INSURANCE
CORPORATION
M r. a n d M rs. R o y D u ria n , M r. a n d
M rs. R o ss S e v e rt a n d M r. a n d M rs.
97
• IOWA
Clarence Rowe of W ellm an atten d ed
th e d in n e r m eeting of th e W ashington
and L ouisa county b a n k e rs held at th e
W ash in g to n C ountry Club recently.
T he P re sb y te ria n L adies Aid of W ash
ingto n served th e d in n e r to fifty b an k
executives, d irecto rs and th e ir w ives.
T he m ain sp eak er of th e evening
w as M. W. E llis of Des Moines, th e
new ly appointed sta te su p e rin te n d e n t
of banking.
R alph Bunce of Des
Moines, d ep u ty su p e rin te n d e n t, also
gave a b rief talk.
Bank President Dies
H erm an N. R eints, p resid en t of th e
Iow a S tate B ank of C larksville and a
B u tler co u n ty b a n k e r for 41 years,
died, recen tly a t his hom e of a h e a rt
attack.
Lions Club Executive
C. A rth u r Johnson, a ssista n t cashier
of th e Toy N ational B ank of Sioux
City, h as been elected ch airm an of th e
natio n al L ions executive council, it
w as an nounced as th e four-day n a
tion al a n n u a l convention closed re
cen tly in N ew Orleans.
Pioneer Banker Dies
A u stin Jay, 84, p ioneer state legis
lato r an d ban k er, died a t his hom e in
M oravia recen tly a fte r a long illness.
New Bank Service
E.
P. Schneckloth has joined th e
staff of th e C itizens F irs t N ational
B ank of Storm L ake and w ill be in
charge of field w ork, announces P re si
den t H a rry Schaller. T his includes
th e m an ag em en t of farm p ro p e rty for
b oth non-resident cu stom ers an d local
people.
T his is a special service to those w ho
w ish to be relieved of th e effort and
tim e necessary to obtain th e b est re
tu rn from th e ir farm in terests.
G oes to Iowa Falls
G. H. B allard, w ho has been em
ployed by th e A ckley S tate Bank, r e
cently accepted a position as a ssista n t
cash ier of th e Iow a F alls S tate Bank.
A. C. T h o rn b u rg , p resid en t of th e
Iow a F alls B ank, tells us th a t Mr.
B allard has been in th e b an k in g b u si
ness in A ckley since 1920, and th is ex
perience should certain ly aid th e Iow a
F alls S tate B ank to give th e ir custom
ers b e tte r service th a n ever.
Leaves Grinnell Bank
Lloyd B reeden, te lle r a t th e Pow e
shiek C ounty N ational Bank, h as ac
cepted th e position of a ssista n t secre
NEWS
•
ta ry -tre a su rer w ith th e P e rry P roduc
tio n C redit A ssociation, a u n it of th e
N ational P roduction C redit C orpora
tion. Mr. B reeden has been w ith the
P ow eshiek County N ational B ank
since th e first of October, 1934.
No one has been obtained y et to fill
th e vacancy th a t w ill be left by Mr.
B reeden’s resignation, according to
Carl Child, vice p resid en t of th e bank.
M. W. E llis of th e S tate B anking De
p a rtm e n t rep o rted recently.
The figure rep resen ts an increase
of $47,468,241 over a y ear ago.
D eposits are up $44,414,720 from a
y ear ago. E llis said it w as in terestin g
to note th a t 85 p er cent of his increase
in deposits found its w ay into an in
crease in cash resources in th e banks,
to th e e x ten t of $37,800,000.
T his la tte r figure rep resen ts an in
crease of $33,593,665 in credits subject
to sight draft, and an increase of
$4,210,286 in th e am ount of cash in
b ank vaults.
Iowa Bank Resources
R esources in 542 Iow a banks oper
atin g u n d er state ch a rte rs totaled
$534,341,075 Ju n e 30th, S u p erintendent
i oWA
Ô^V BANKERS
WE CORDIALLY INVITE YOU TO
V ISIT OUR D ISPL A Y
OF
MONROE BANK
ACCOUNTING MACHINES
FOR ALL TYPES OF BANK WORK
POSTING — COMMERCIAL & SAVINGS ACCOUNTS —
PERSONAL LOANS — FHA LOANS — WINDOW POSTING
COUNTER ADDING — DEPOSIT PROOF — TRANSIT
ACCOUNT ANALYSIS — INTEREST — ACCRUALS
AT
THE
IOWA BA NK ERS A SSO C IA TIO N
CONVENTION
MEZZANINE FLOOR, HOTEL FORT DES MOINES
SEPTEMBER 8-9-10
M O N R O E C A L C U L A T IN G
M A C H IN E C O M P A N Y , I n c .
DES MOINES
CEDAR RAPIDS
OMAHA
MASON CITY
SIOUX CITY
DAVENPORT
BURLINGTON
N orthw estern B anker Septem ber Í9M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M eet Them
In Des Moines
September
8
-9
- 1 0
E. F. B U C K L E Y
V ice P re s id e n t
C en tral N a tio n a l B an k , D es M o in es
A L V IN E. J O H N S O N
P re s id e n t
L iv e Stock N a tio n a l B ank, O m aha
J. J. M IL L E R
C ash ier
W ate rlo o S a v in g s B an k
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
O. P A U L D E C K E R
V ice P re s id e n t
A m erican N a tio n a l B ank, C hicago
E A R L E R. G A F F O R D
Second V ice P re s id e n t
C hase N a tio n a l B ank, N ew Y ork
C. R. G O S S E T T
P re s id e n t
S e c u rity N a tio n a l B ank, S ioux C ity
H A R O L D S. E V A N S
P re s id e n t
A llied M u tu a l C asu a lty C om pany, D es M oines
99
•
E llis fu rth e r pointed out th a t an
increase of $5,181,000 in loans re p re
sen ts less th a n 12 p er cent of th e in
crease in deposits.
C apital funds increased ap p ro x i
m ately th re e m illion dollars d u rin g
th e year.
T he consolidated sta te m e n t of re
sources and liabilities of th e 297 sav
ings b an k s and 245 state b an k s o p erat
ing u n d e r sta te c h a rte r at th e close of
business Ju n e 30, 1941, follows:
R esources—
L oans a n d d isco u n ts..........................$ 3 0 2 ,0 1 8 ,5 2 7 .1 2
U n ited S tates s e c u ritie s ..................
50,2 5 7 ,0 8 0 .2 0
S e c u ritie s g u a ra n te e d by U . S.
g o v ern m en t .....................................
14,3 4 4 ,5 8 2 .4 6
O v e rd ra fts ............................................
95 ,3 4 7 .5 4
Stock in F e d e ra l R eserve B a n k . .
2 6 1 ,3 0 0 .0 0
B an k in g house an d fix tu re s ..........
5,0 3 8 ,6 4 1 .2 2
1 ,0 5 9 ,384.26
O th er re a l e s ta te ..................................
C redits su b ject to sig h t d r a f t . . . . 142 ,9 1 6 ,3 7 6 .6 9
C ash in v a u lt ....................................
18 ,2 1 3 ,4 2 6 .4 7
O ther assets ........................................
136 ,4 0 9 .7 3
T o tal ....................................................$ 5 3 4 ,3 4 1 ,0 7 5 .6 9
L iab ilities—
C apital stock ...................................... $ 2 3 ,7 5 0 ,5 0 0 .0 0
S u rp lu s fu n d .....................................
14 ,3 7 0 ,3 5 5 .0 0
U ndivided profits .............................
1 2 ,594,791.78
D ue depositors ................................. 4 8 3 ,3 3 7 ,3 5 2 .1 6
Bills payable an d r e d is c o u n t s ....
10;029.98
2 7 8 ,0 4 6 .7 7
O th er liab ilities ..................................
T otal
...................................................$534 ,3 4 1 ,0 7 5 .6 9
L E G A L DEPARTM ENT
(C ontinued from page 14)
ta in real estate ow ned by it there.
King, in tu rn , w ith o u t th e b a n k ’s
know ledge or consent, em ployed H yde
as su b ag en t to find a p u rch aser. H yde
found a p u rch aser and th e sale w as
com pleted. T he bank, w hich h ad no
know ledge of H yde’s w o rk on th e m a t
ter, paid K ing a com m ission for th e
sale. L a te r H yde dem anded p ay m en t
for his w o rk from th e bank. Could
he recover?
No. K in g’s em p loym en t of H yde
did not hind the hank to pay H yde be
cause one em ployed to find a pur
ch aser of real estate is n ot authorized
to em ploy a su bagent at the exp en se
of the ow ner.
S aunders obtained a ju d g m en t
ag ain st F re e g a rd in N o rth Dakota.
F re e g a rd re n te d a safe deposit box
from a b a n k in th a t sta te an d th e Dis
tric t C ourt, w hich ren d ered th e ju d g
m ent, en tered an o rd er directin g th e
b an k to open th e box by force in order
to enable th e sheriff to levy an exe
cution upon its contents. W as such
o rd er proper?
IOWA
NEWS
•
strik e of th e w orkm en a t th e p lan t
occurred
and
operations
th e re in
ceased.
Im m ediately p rio r to the
strik e certain railro ad box cars had
been placed in th e p lan t by th e ra il
road serving it for th e purpose of
hav ing th e ir contents unloaded. The
cars could not be unloaded for some
tim e and d em urrage charges accrued.
Could th ey be collected by th e ra il
road from th e ow ner of th e plant?
Yes. A strik e is n ot an excu se a v a il
able to a co n sign ee for failure to make
cars available to a railroad under
p en alty of p ayin g dem urrage.
In
other w ords, an in terferen ce w ith the
b u sin ess of a concern does not relieve
it from lia b ility for dem urrage.
H O W THE A R M Y PAYS
ITS BILLS
(C ontinued from page 18)
cal agent for th e Civilian C onservation
Corps and for th e Selective Service
System . The Chief of F inance p re
pares and consolidates th e budget for
CCC activities w hich includes opera
tions by th e office of th e CCC director,
W ar, A g ricu ltu re an d In te rio r De-
» 1 1 1 1
■
BUSINESS AS UN-USUAL
Is the O rder of the D ay
In th e lig h t of p re s e n t c o n d itio n s,
b u s in e s s a s u s u a l is a m e a n in g le s s
p h ra s e . N ew p ro b le m s re q u ire n e w
so lu tio n s.
A s a n e s s e n tia l p a rt of o u r c o rre
s p o n d e n t b a n k re la tio n s h ip s, o u r
e x p e rie n c e is a v a ila b le to you.
MISSISSIPPI VALLEY TRUST COMPANY
St. Louis
Yes. A n order of a court directing
a hank w h ich had leased a safe de
p osit box to a jud gm ent debtor to open
the b ox b y force in order to enable
a sheriff to le v y an execu tion upon
the con ten ts th ereof is a proper order
in aid of the execu tion.
A W isconsin b a n k e r ow ned a m a n
u fa c tu rin g p la n t in th a t state. A
N orthw estern B anker Septem ber 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
100
• IOWA
p artm en ts. F u n d s ap p ro p riated for
the Selective Service System are tra n s
ferre d to th e W ar D ep artm en t to be
disbursed and accounted for by th e
finance office. F u n d s are th e n allo tted
to th e Selective Service D irector and
S tate P ro cu rem en t officers.
In addition, th e F in an ce D ep artm en t
disburses funds for non-m ilitary activ i
ties of th e W ar D ep artm en t as cemeteria l expenses and A laska C om m uni
cations system . It is also called upon
from tim e to tim e to disburse funds
allotted or ap p ro p riated for such p u r
NEWS
poses as relief for flood sufferers and
the pilgrim age of Gold S tar m others
to F rance.
T he bulk of F inance D ep artm ent
troops belong to Corps A rea Service
Com m ands and are assigned to statio n
com plem ents. F inance sections are
m ain tain ed in th e field u n its as fol
lows: G eneral H eadquarters: GHQ air
force; field arm y; arm y and arm ored
corps, in fan try ; cavalry, and arm ored
divisions.
Selectees serving w ith th e Finance
D ep artm ent undergo reg u lar th ree
Equipment of interest to every banker
ADJUSTO Tray-Binder
" The L e d g er Tray
That H a s Ev e ry th in g '
Used and Endorsed by
Bankers All Over America
Portable Cabinet Base
Posting and Filing Outfit
Current Ledger and T ransfer File in one
convenient unit. Made fo r sheets o f any
Hi-Lo Reference and Posting Stand
Two Stands
in ONE
H IG H
fo r Reference
LO W
fo r posting
Interm ediate heights
for other operations
Ju st raise if UP, or
push
it
DOWN,
G ET AN Y
DESIRED H E IG H T
IN STA N TLY
V
See our exhibit at A. B. A. N ational Convention at Chicago and at
the Iowa State Bankers Convention at Des M oines, or write for details.
IE P
e
B U R E CORPORATION
O rig in ato rs and M anufacturers
CEDAR RAPIDS, IOWA, U. S. A.
N orthw estern B anker S eptem ber 19 k i
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
m o n th s’ basic tra in in g a t replacem ent
tra in in g centers. T hey are assigned
to d u ty w ith th e d ep artm en t on requi
sition for occupational specialists in
th e categories of accountants, cashiers,
general clerks, and chief clerks.
A n arm y finance school is located a t
th e H olabird Q u arterm aster Depot,
B altim ore, M aryland. Two classes for
enlisted m en of th e F inance D epart
m en t are held each year, each class
ru n n in g for approxim ately f o u r
m onths and including 72 students. In
stru ctio n of re g u la r arm y officers of
th e F inance D ep artm en t is conducted
on an individual basis in a th ree
m o n th s’ course as occasion requires.
F ro m tim e to tim e th re e m o n th s’ resi
den t courses are conducted for in
stru ctio n of groups of R eserve and N a
tional G uard officers. A correspond
ence course is conducted in w hich all
new enlisted m en of th e F inance De
p a rtm e n t are req u ired to enroll. T his
course is occasionally opened to o ther
enlisted personnel an d to civilian em
ployes engaged in F inance D epart
m en t w ork.
T he F inance D ep artm en t as it is con
stitu te d today w as created by th e N a
tional D efense Act of Ju n e 3, 1916, as
am ended by act of Ju n e 4, 1920. I t is
th e n a tu ra l successor to th e old pay
d ep artm ent, w hich w as created by a
resolution of th e C ontinental Congress
Ju n e 16, 1775, and it has in h erited th e
insignia, functions, an d trad itio n s of
th a t early service. T he pay d ep art
m en t functioned as an in stru m e n t of
the W ar D ep artm en t from its incep
tion in th e y e a r 1775 u n til th e year
1912. In th e la tte r y ear th e functions
of th e p ay d e p artm en t w ere consoli
dated w ith those of th e q u a rte rm a ste r
corps.
A fter th e W orld W ar, and u n d er the
provisions of th e O verm an Act, all dis
b u rsin g activities w ere divorced from
the q u a rte rm a ste r corps. B rigadier
G eneral H. M. L ord w as designated as
d irector of a sep arate u n it know n as
th e finance service for th e purpose of
liquidating all th e o u tstan d in g obliga
tions of th e W ar D ep artm en t created
as a re su lt of th e W orld W ar.
T he success of G eneral L ord’s ad
m in istratio n convinced th e S ecretary
of W ar and Congress of th e need of
an in d ependent organization w ith p er
sonnel tra in e d in th e technical duties
of controlling and accounting for the
finances of th e W ar D ep artm en t and
th e expeditious liquidating of all obli
gations of th e m ilitary establishm ent
created by th e various p rocurem ent
services.
By v irtu e of an am endm ent to th e
N ational D efense A ct passed by Con-
101
• IOWA
gress, Ju n e 4, 1920, th e F in an ce De
p a rtm e n t w as created as an independ
e n t b u re a u of th e W ar D epartm ent.
Its d irecto r w as d esignated as th e
Chief of F in an ce w ith th e m ilita ry
ra n k of b rig ad ier general. P u rs u a n t
to an act of F e b ru a ry 24, 1925, th e
Chief of F in an ce w as given th e ran k ,
pay an d allow ances of a m ajo r g en
eral.
NEWS
b ank w hich serves th e few, stro n g and
w ealth y th o u g h th ey m ay be.
In
building up such a v ast friendship
th ro u g h its stream lined and helpful
service th e La Salle N ational expects
to create assets of priceless value.
Hi, Sheriff!
“A ren ’t you afraid of losing control
of th e car?”
“Yeah, I ’m tw o installm en ts behind
already.”
GREETINGS
STR EA M LIN IN G TH E BANK
(C ontinued from page 24)
ten tio n even w h ere th e profit m ay n o t
seem to ju stify it.
W ill th is “h u m a n ita ria n ” b an k in g
pay in th e long ru n ? T he b est a n sw er
to th is is th a t it h as paid in th e sh o rt
ru n of only six m o n th s and th erefo re
should pay in th e com ing m u ltip les of
six m onths. B u t looking fa rth e r
ahead, is it n o t b an k in g ad m irab ly
adap ted to th e tim es?
In th is period of enorm ous in creases
in deposits w ith o u t corresponding out
lets th ro u g h o rd in a ry channels, w h a t
proced u re could be m ore logical th a n
th a t of finding new channels? If th ese
be sm aller individually, th e y are m u l
titu d in o u s in num ber. H ave n o t th e
businesses serv in g th e needs of th e
m an y show n steady g ro w th and satis
facto ry earn in g s d u rin g th e p ast dec
ade and fared b e tte r th a n m ost basic
ind u stries? W h at are som e of these
businesses? T he chain stores, th e low
price clothing stores, th e soft d rin k
concerns, new m agazines, th e m oving
pictures, th e bus lines an d th e con
cern s selling th e 5 an d 10-cent item s to
th e average fam ily an d m illions of
them . T axes hav e m ade h eav y in
roads on large incom es and w ill m ake
m ore. B ut new jobs and b e tte r w ages
are b rin g in g m illions into th e saving,
ow ning an d b o rro w in g classes w ho
w a n t to get ah ead an d w ho need b a n k
ing services of every tpye.
T he sum to tal of m oderate an d sm all
incom es m u st now grow g reater. A nd
is it n o t only a sh o rt sp an of m o n th s
since we h e a rd m uch of th e distressed
p lig h t of so-called “sm all b u sin ess?”
Today th ese e n te rp rise s have en tered
into a period of increased activity. Big
ban k s hav e too often neglected to de
velop th e p o ten tial business in th e
sm all concerns w ith th e re su lt th a t
th e y w ere forced to look to th e sm all
b an k and p a rtic u la rly th e neig h b o r
hood bank. T hey now co n stitu te an
appreciative and lu crativ e field for
“co m m unity b an k in g .” In creased ac
tiv ity and g ro w th w ill b rin g th e need
for b ro ad er and m ore active use of all
ban k in g facilities. T herefo re th e b an k
w hich serves th e m an y m ay find itself
cu ltiv a tin g a m ore fertile field th a n th e
•
to the
IOWA BANKERS ASSOCIATION
M ay your 1941 Annual Convention, Septem ber 8-10 in D es M oines,
b e h igh ly su ccessfu l and en joyab le a s u su al. A s a lw a y s, this bank is
h ap p y to take part in A ssociation affairs and to work for the betterment
of Iow a banking.
DIRECTORS:
D r. E . M . M ac E w e n , D ean of C ollege of M ed ic in e , S ta te U n iv e rs ity of Iow a
R. J. B asc h n ag e l, D ire c to r, F e d e ra l L a n d B ank, O m aha
G eorge A. T hom pson, R e tire d
G eorge J. K eller, P ro fe ss o r of E n g in e e rin g , S ta te U n iv e rs ity of Iow a
M . B. G u th rie, C ash ier
Guy A. S tevens, F a rm e r
B en S. S u m m erw ill, P re s id e n t
OFFICERS:
B en S. S u m m erw ill, P re s id e n t
D r. E. M . M ac E w e n , V ice P re s id e n t M. B. G u th rie, C ashier
M. E . T a y lo r, A u d ito r
W . F. S chm idt, A s s is ta n t C ash ie r
W . W . S u m m erw ill, C re d it M a n a g e r
IOW A S T A T E B A N K
& TRUST COMPANY
Iowa City, Iowa
M em b e r F e d e ra l D e p o sit In s u ra n c e C orp o ratio n
Iowa’s Largest Business School
Many banks, bond houses, insurance companies and
other financial institutions employ A. I. B. graduates.
Write or telephone when you need efficient office employes.
Be sure to visit the A. I. B. when in Des M oines
E. O. FENTO N, Director
A merican Institute of B usiness
DES MOINES
Tenth and Grand
Phone 4-4221
N orthw estern Banker Septem ber i'Jbl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
102
IOWA
PROSPERITY "R A IN S" IN
THE D A K O T A S
(C ontinued from page 75)
p er cent com plete. T hey do not cover
sales of county land n o r sales of six
agencies from w hich re p o rts w ere not
received.)
“M ore th a n 13,000 farm ers in 35
South D akota counties have stabilized
th eir farm in g operations by th e use of
sorghum s, according to early re tu rn s
from a su rv ey being conducted by th is
office. A bout 100 farm s have an av e r
age of 500 or m ore acres of sorghum s;
416 have a n average of 250 or m ore
acres, w hile m ore th a n 1,600 farm s
have an average of 100 or m ore acres
of th is feed crop.
“P robably no th in g b e tte r illu stra te s
N orthw estern Banker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NEWS
th e increased buying pow er of th e peo
ple of South D akota th a n th e steady
increase in th e ow nership of tracto rs,
electric refrig erato rs and radios. Radio
ow nership in 1940 w as 76 p er cent
above 1934 and 20 p er cent above 1937;
electric refrig erato rs w ere 182 p er cent
above 1934 and 55 p er cent above 1937,
and tra c to r ow nership w as 45 p er cent
above 1934 and 17 p er cent above 1937.
T he figures for these and in terv en in g
y ears are as follows, tak en from th e
a n n u al rep o rts of th e S tate D ivision of
Taxation:
Electric ReRadios frigerators Tractors
1940
1939
1938
1937
1936
1935
1934
............................... 104,420
..................................
95,980
.................................
91,466
.................................
86,527
.................................. 73,097
..................................
65,860
............................... 59,192
36,836
32,065
27,480
23,686
19,438
15,174
13,020
41,805
39,073
37,045
35,666
33,646
31,674
28,708
A nd This: T here w ere 7,348 m ore
auto reg istratio n s in 1940 th a n in 1937,
a to tal of one car for each 3.9 persons
or an average of a car for each fam ily
in th e state.
TERM L O A N F IN A N C IN G
R IT IN G in B urroughs Clearing
H ouse on factors in te rm loan
W
financing, Percy J. E bbott, vice p resi
d en t of Chase N ational Bank, explains
th e technique of m aking such loans,
and says in part:
“T here is n o thing p a rticu larly new
about term or in term ed iate loans.
T hey are sim ply loans m ade for longer
th a n one year, occasionally up to ten
years, b u t negotiated by com m ercial
banks w ith in d u strial concerns ra th e r
th a n being sold by in v estm en t ban k ers
to th e public.
“T he changes in b an king an d busi
ness th a t led to th e developm ent of
te rm loans in 1934-35 cam e about over
a period of years, principally since
1929. Com m ercial ninety-day and sixm onths loan in our banks began to
decline. As an offset, banks increased
th e ir holdings of go v ern m en t obliga
tions, and excess reserv es accum u
lated. In te re st rates declined.
“The new s spread rap id ly am ong
borrow ers th a t m oney a t low rates
w as available at th e ir banks for re
funding loans up to five years. Some
of th e ir m ajor reasons for being in
terested in te rm loans w ere:
“1. R efunding high-rate bonds or de
bentures;
“2. P u rch asin g m a c h i n e r y a n d
equipm ent;
“3. R eplacing short-term c r e d i t ,
th ereb y fixing th e in te re st ra te for a
longer period;
“4. Savings by elim inating costs of
reg istratio n of a public issue and of
listing it on th e exchanges, plus sav
ings in legal expense incident to regis
tra tio n and listing;
“5. E lim in atio n of m ortgages (in
m ost instances) and possibly some re
strictio n s of th e in denture;
“6. C onvenience of dealing w ith a
bank, or a few banks, as contrasted
w ith num erous holders of a publicly
d istrib u ted issue;
“7. E xpenses of tru stee.
“T here has been som e criticism of
banks for unw illingness to m ake term
loans of sm all size. A n accurate sta te
m en t w ould be th a t th e com petent
b an k er has no objection to th e sm all
size of a req u ested te rm loan. R ather,
th e fact th a t th e req u ired prim a facie
evidence th a t th e loan probably does
n ot m eet th e stan d ard s of a sound
term loan. T he applicant w ho comes
You W ill See
hem In Des Moines
ELLSW O R TH M OSER
E x e c u tiv e V ice P re s id e n t
U n ite d S ta te s N a tio n a l B ank, O m aha
R A Y M O N D A. L O C K W O O D
V ice P re s id e n t
M a n u fa c tu re rs T r u s t Co., N ew Y ork
W . E. BRO CK M A N
V ice P re s id e n t
M id la n d N a tio n a l B ank, M in n ea p o lis
D. R. C R O U L E Y
A s s is ta n t C ash ier
N o rth w e ste rn N a tio n a l B ank
M in n e a p o lis
M . A. W IL S O N
V ice P re s id e n t and C ash ier
L iv e S tock N a tio n a l B ank, S ioux C ity
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
E M IL A. S T A K E
V ice P re s id e n t
F ir s t N a tio n a l B ank, C hicago
W OOD NETHERLAND
V ice P re s id e n t
M e rc a n tile C om m erce B ank & T r u s t Co.
St. L ouis
104
• IO WA
in for, say, $50,000 spread across five
y ears of rep ay m en ts probably does not
check satisfacto rily ag ain st all th e
questions listed ju s t above. If he did,
he w ould already have th e $50,000, or
could get it at his b an k on a c u rre n t
loan.
“Also, a sm all firm can seldom afford
th e cost of m ore th a n one top-notch
executive. W e have n o t y e t been able
to convince ourselves th a t a business
headed by an ex trem ely capable m an,
b u t w ith o u t an equally capable m an
backing him up, is a safe b o rro w er of
depositors’ funds for a te rm of years.
T he len d er cannot tak e th e chance
NEWS
th a t th e rig h t successor w ill be fo rth
com ing to replace th e p re se n t chief
executive several y ears hence.”
T O O M U C H ROUTIN E
IT has has been said th a t clerical
I w o rk in a ban k has becom e so
m uch a m a tte r of ro u tin e th a t th e in
dividual is now m erely a cog in a large
w heel, and has had his or h er in itia
tive com pletely destroyed. Com m ent
ing on th is m a tte r of routine, J. B ruce
Maclay, and clerk in th e V alley N a
tio n al B ank of C ham bersburg, P en n
sylvania, says in B a n k in g :
T h e r e ’s G ood R e a s o n fo r
O ur G ro w in g S e r v ic e
W e know from actu al experience w hat ban k s
outside of Sioux City expect in the w a y of
service from their correspondents in Sioux City.
It is know ing w hat they expect—an d giving
w hat they expect—that h a s m ad e our corre
spondent relations increasingly bro ad in scope
an d in satisfaction.
W e are re a d y to serve you in the sam e
u n d erstanding w ay.
★
★
S E C U R I T Y N A T IO N A L B A N K
SIOUX CITY, IOWA
MEMBER FDIC
—
•
Out-of-Town ¥>anks
O u t-o f-to w n banks and bankers w ill find here
co 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 o f accounts in Chicago. W e
“B ankers an d b ank em ployes g ener
ally are aw are of th e m ore ap p aren t
evils attach in g to th e ro u tin e elem ents
of th e ir profession, and in recen t years
m uch constructive w ork has been done
tow ard elim inating them . B ookkeep
ing practices have been revolutionized
by th e installatio n of m odern business
m achines w hich elim inate tiresom e
com putation and endless duplication,
leaving th e ir operators free to perform
duties involving th o u g h t and ju d g
m ent. Techniques of ro tatin g respon
sibilities am ong em ployes have largely
rem oved th e boredom resu ltin g from
static em ploym ent a t one task. E m
phasis upon th e em ploye’s im portance
in th e public relations program of th e
bank has acted to relieve occupational
ap ath y and m ake him m ore a le rt to
w ard th e public he m eets daily.
“The elim nation of out m oded prac
tices in accounting has reduced th e
total and co n ten t of form erly rep eti
tious tasks. And, above all, th e grow
ing in te re st in professional education
has provided th e m eans and in sp ira
tion for individual grow th, and has
supplied th e essential challenge w hich
bids each em ploye to equip him self
for th e duties w hich are above routine.
In so far as th e above reform s have
gone, th ey have done m uch to rem ove
th e stigm a of dru d g ery from th e w ork
of th e b ank clerk. H ow ever, th e in
h e re n t evils of ro u tin e still rem ain and
it is only th ro u g h individual analysis
and application th a t th ey w ill be en
tirely rem oved. T he h u m an tendency
to tak e th e easiest road is u n usually
po ten t in th e trad itio n ally conserv
ative business of banking.
“All too often, b ank em ployes spend
th eir lives m oving indifferently dow n
th e track of custom , coasting along
w ith th e ir w heels held to its rails by
the iron flanges of habit. Or, to take a
lesson from n atu re, th ey im itate in
th e ir w ork th e reg u larity and m onot
ony of th e seasons w ith o u t recognizing
the accom panying q uality of unceasing
adaptation.
“In tellectu ally and m orally, th ey
fail to progress, and th e ir professional
and personal lives become w arped and
m eaningless.”
w ould appreciate the opportunity o f serving you.
I
¡§
C i t y N a t io n a l B a n k
AND
T R U S T
2 0 8
S O U T H
C O M P A N Y
of Chicago
L A S A L L E
{Member Federal Deposit Insurance Corporation)
N orthw estern B anker Septem ber
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
S T R E E T
EN O U G H LO A N S?
CLOSE study m ay disclose th a t
there are p len ty of loans avail
A
able in y o u r com m unity, believes W.
O. Osborn, cashier of th e S tate E x
change B ank of Culver, Indiana. He
w rites about it in th e M id-Continent
B a n ker as follows:
“T here are m any b an k ers w ho feel
(T u rn to page 108, please)
105
A
L L E Y
A Y I N
G
B A N
K
• • DES MOINES • •
W here com plete facilities and
service are coupled with the
kind of cooperation
you will like.
Frederick M . M orrison, President
W infield W . Scott, Vice President
J. R. A stley, Cashier
E dw ard P. K au tzk y , Assistant Vice President
M arvin L. P ayne, Assistant Cashier
F ran k M . T hom pson, Assistant Cashier
Member Federal Deposit Insurance Corp.
Northwestern Banker September 19bt
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
These Men
W ill Be A t
The Iowa Convention
M A R V IN R. S E L D E N
V ice P re s id e n t
M erc h a n ts N a tio n a l B ank, C ed ar R ap id s
E. W . J O N E S
V ice P re s id e n t
Io w a -D e s M o in es N a tio n a l B ank
D es M o in es
D O N A L D A. H A R P E R
F ir s t W isc o n sin N a tio n a l B ank
M ilw aukee
L O U IS JA C O B Y
C hase N a tio n a l B ank, N ew Y ork
C H A R LES CAREY
A ss is ta n t C ash ier
H a rris T r u s t & S av in g s B ank
C hicago
R. R. B R U B A C H E R
P re s id e n t
T oy N a tio n a l B ank, S ioux C ity
W . R. T A T E
A s s is ta n t C ashier
C om m erce T r u s t Co., K an sas C ity
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
107
A dvertisem ent
"Ro l l o f H o n o r " Ban ks
It is an honor to be listed among the H ON OR RO LL BANKS. It indicates that the
bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital
T h e b a n ks listed on th is page are som e o f Io w a ’s o u tsta n d in g H onor R o ll” B a n ks. B y
ca refu l m a n a g em en t and sound b a n kin g th e y have achieved th is en viable p o sitio n . T hese
b a n ks w ill be esp ecia lly glad to h a n d le a n y collections, special cred it reports or o th er
business in th e ir c o m m u n itie s w h ich yo u m a y en tru st to th em . C orrespondence is in vited .
TOW N
BANK
A lb u r n e tt.............................. A lb u rn ett S ta te B a n k ...................................
A lta V is ta ............................A lta V ista S ta te B a n k .................................
A m e s ...................................... A m e s T r u st & S a v in g s B ank
A r lin g to n .............................A m e r ic a n N a tio n a l B a n k ............................
A tla n tic ..................................A tla n tic S ta te B a n k ......................................
A u d u b o n ................................F ir s t S ta te B a n k ..............................................
B e a m a n ..................................F a rm e rs S a v in g s B ank
C a r lisle .................................. H a rtfo r d -C a r lisle S a v in g s B ank
C arroll................................... C arroll C ounty S ta te B a n k ..................
C arroll....................................C om m ercial S a v in g s B ank
C edar R a p id s..................... U n ited S ta te B an k
— .............................
C e n te r v ille ...... ....................Io w a T r u st & S a v in g s B a n k .....................
C la ren ce................................ C laren ce S a v in g s B a n k .........................
C o lfa x ....................................F ir s t N a tio n a l B a n k ......................................
C r o m w e ll.............................. C rom w ell S ta te S a v in g s B a n k .v.............
D e s M o in es..........................C entral N a tio n a l B an k & T r u st C o......
D e s M o in es..........................V a lle y S a v in g s B a n k ......................................
D e W itt...........................
D e W itt B an k & T r u st Co...........................
D o n a h u e ................................D on ah u e S a v in g s B a n k .........................
D o n n e llso n ...........................C itize n s S ta te B a n k ...............................
F a r n h a m v ille ..................... S e c u r ity S a v in g s B ank
F o n d a ..................................... F ir s t N a tio n a l B a n k ......................................
H u m b o ld t............................. F ir s t N a tio n a l B a n k ......................................
H u m b o ld t............................. H um bold t T r u st & S a v in g s B ank
Iow a C ity ............................. F ir s t C a p ital N a tio n a l B a n k .....................
Iow a C ity ............................. Iow a S ta te B ank & T r u st Co....................
J e ffe r so n .................. ............ Je ffe r so n S ta te B a n k .............................
K e o ta ..................................... F a rm e rs S a v in g s B a n k ...............................
L ake M ills...........................F a rm e rs & M erch an ts S ta te B ank
L o h r v ille .............................. L o h rv ille S a v in g s B ank
L one T r e e ........................... F a rm e rs & M erch a n ts S a v in g s Bank.
M a n c h e ster ...................... F a rm e rs & M erch a n ts S a v in g s B ank.
M a rsh a llto w n ....... .............S ecu rity S a v in g s B a n k .................................
M ount V ern o n ................. M ount V ern on B an k & T r u st Co...........
M u sc a tin e .............................M u sca tin e B an k & T r u st C o...................
N e v a d a ....... ..........................N e v a d a N a tio n a l B a n k ................................
N e w to n ................................. J a sp er C ou n ty S a v in g s B ank
N o r a S p r in g s..............— F ir s t S ta te B a n k .............................................
O elw e in ................................ F ir s t N a tio n a l B a n k .........
.....
O gd en ..................................... C ity S ta te B a n k ..............................................
O n slo w ................................... O nslow S a v in g s B a n k ...................................
P a r k e r sb u r g ...................... P a rk er sb u r g S ta te B a n k ............................
P e lla .......................................P e lla N a tio n a l B a n k ......................................
P e r r y .......................................P er ry S ta te B a n k ..........................................
Sac C ity ............. ................. Sac C ity S ta te B ank
S h e lb y .................................... F a rm e rs S a v in g s B a n k ..............................
S h en a n d o a h .................. ..... S e c u r ity T r u st and S a y in g s B ank
S io u x C ity ........................... W oodb ury C ou nty S a v in g s B ank
S tu a r t................................... F ir s t N a tio n a l B an k .................................
U n io n ....................................U n io n -W h itte n S ta te S a v in g s B ank...
W a te r lo o .............................. N a tio n a l B ank o f W a te rlo o ..........
W a te r v ille .......................... F a rm e rs & M erch an ts S a v in g s B ank
W e b ste r C ity .....................F ir s t S ta te B a n k .............................................
W e st B e n d ...........................Tow a S ta te B a n k ...................
..........
W e st B r a n c h ..................... F ir s t S ta te B a n k .............................................
W h e a tla n d ............................F ir s t T r u st & S a v in g s B a n k ....................
W y o m in g ..............................C itize n s S ta te B a n k .......................................
O F F IC E R
A. J. S c h u e le r.............
Jo e M enges ..................
C lay W. S ta ffo rd .........
H. R. Y o u n g ..................
,C. D. E m m e rt............
E. S. V an G order, Jr..
W. E . W h o rra ll........ .
G. D. S chooler.............
,G. J. H e ss......................
.R o b e rt M. M oehn......
F . G. K a n a k .................
Jo h n H . Y o u n g .... .
.A rnold R u th e r ..........
.H . E . B ell.....................
.A. O m ar C an n o n ........
,F . R. W a rd e n ..............
,J . R. A stle y .................
.J . Yvo F lo e rc h in g e r..
.W a lte r E . P a u stia n ....
.R. L. S c h m itt...............
.0 . W . M adson............
.A . M. K u h l...................
B. B. W a ts o n .......... .
,J . L. C am p b ell............
,F . D. W illia m s............
.B en S. S u m m erw ill.. .
.R a lp h H. M alo n ey ......
.W a lte r S to u tn e r
.S. R. T o rg e so n ............
.0. E . V an H o rn ..........
J. E . A sh to n ......... .......
.W . W . M a tth e w s........
..W ill A. L a n e ..............
,.D. U . V an M e tre ........
B. L. M cK ee.................
,L. R. B a s s e tt..............
R a y O. B a ile y ...........
..E. C. M oody................
M. C. H a n so n ..............
..A rnold Boehm
..Geo. H . P a u ls e n .........
.0. A. B a ile y ...............
..M o rtim e r Goodwin .
,.N . P. B la c k ..................
..A. O. A n d e rso n .........
,.L. O. S to k e r................
„ E . C. F is h b a u g h ___
..C. T. M cC lintock.......
,.C. L. B eech.......... .......
„H . E. L o n g ------------_.C. S. M c K in stry .........
..C. V. N e lso n ______ _
..B. P . St. J o h n .............
..J. J. J a e g e r ................
,,F . L. P e a rs o n .............
,R. C. P e te r s ................
..L. B. M adson.............
C A P IT A L
.$
25,000
25.000
75.000
25.000
50.000
50.000
25.000
25.000
75.000
50.000
50.000
50.000
25.000
25.000
15.000
1 ,0 0 0 ,0 0 0
150.000
25.000
2 0 .0 0 0
25.000
25.000
25.000
50.000
50.000
1 0 0 .0 0 0
1 0 0 ,0 0 0
50.000
30.000
25.000
2 0 .0 0 0
2 0 ,0 0 0
75.000
50.000
50.000
125.000
50.000
1 0 0 .0 0 0
25.000
50.000
50.000
2 0 .0 0 0
25.000
50.000
50.000
50.000
25.000
60.000
...
1 0 0 ,0 0 0
35.000
25.000
250,000
25.000
50.000
2 0 .0 0 0
25.000
50.000
25.000
SU RPLU S
P R O F IT S
$
26,205
32,410
132,508
37,208
115,000
55.000
33,604
47.000
113,575
54,470
54,614
86.590
50.000
60,107
18,912
1,261,968
305,466
56.590
25,322
28,011
31,231
36,645
135,250
146,304
174,612
132,391
106,450
34,350
63,286
30,400
52,923
80.000
90.000
74,131
212,205
50.000
256,731
32,178
115,000
75,100
39,354
46,352
57,253
82,019
70,004
41.000
66,576
159,498
38,306
33.000
305,115
25.000
81.000
26,973
50,570
63,792
32,544
Northwestern Banker September 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
108
•
EN O U G H LO A N S?
(C ontinued from page 104)
th a t th e y can n o t pro cu re sufficient
loans to consum e th e ir funds for in
vestm ent. W ith th is in m ind th e y p u r
chase bonds and o th er secu rities w hich
yield a ra te th a t is m uch less th a n th e
average cost of th e ir m oney. M any
of th ese b a n k e rs becom e “Coupon
Clippers.”
“I w ould n o t w a n t to tell an y b an k er
th a t th e re are an y m ore loans to be
found in his com m unity, b u t if you
IOWA
NEWS
w ill give th e m a tte r close stu d y you
m ay discover th a t you are not loan
ing m ore th a n 10 p er cent of th e funds
th a t are being loaned in y o u r com
m unity.
“I have no fau lt to find w ith th e
b an k er w ho really needs to adopt a
service charge, b u t I do th in k th at,
in m any instances, our b an k ers have
ta k e n advantage of th e situ atio n and
have caused m any of th e ir custom ers
to re se n t th e service w hich th ey offer
to th e public. Good w ill m u st be
FOUR MONTHS OLD—August 16, 1941
Statement of Condition
IO W A S T A T E B A N K
East Sixth and Locust Streets
One Block W est Capitol Mall
DES MOINES
ASSETS
L IA B IL IT IE S
L o an s and D is c o u n ts ............. . . .$269,147.31
F u rn itu re and F ix t u r e s ......... . . . 10,000.00
C ash and D ue from B an k s. . . 490,759.77
C ap ita l Stock (C o m m o n )........... $100,000.00
S u rp lu s and U n d iv id e d P ro fits. 25,862.83
D e p o sits ............................................ 644,044.25
$769,907.08
$769,907.08
IOWA BANKERS . . . VISIT DES MOINES' YOUNGEST BANK
WHILE ATTENDING YOUR STATE CONVENTION. YOU ARE
VERY WELCOME
M e m b e r F ederal D e p o sit Insurance
C o rp o ra tio n
Since 1881
F. E. D A V EN P O R T & CO .
H as serv ed th e B a n k ers in T im elo c k , S a fe an d V au lt In sp e c tio n
•
We are proud of this record and of our relations as the official
experts of The Nebraska Bankers Association
•
O ur 24-H our C ontinuous Service G uarantees
You Im m ediate A tten tio n
•
Distributors of YALE & TOW NE MFG. CO.
Bank Locks and Day Protection Equipm ent
F. E. D A V E N P O R T & C O .
O M A H A
Northwestern Banker September 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
m ain tain ed a t all tim es if a b ank is
to be o perated successfully, and I am
a firm believer th a t our banks belong
to our com m unities and th a t th e com
m u n ity in w hich th e ban k exists has
a rig h t to expect its b ank to serve
as m ore th a n depositories.
“Our b an k has approxim ately $2800,000 in deposits and we have m ore
th a n $2,000,000 loaned—classified and
divided as follows:
$150,000.00—A utom obile, tru c k and
tra c to r loans;
$75,000.00—T itle I F.H.A. loans;
$175,000.00—In sta llm e n t notes se
cured by personal property;
$25,000.00—T itle II F.H.A. loans;
$500,000.00—O ther real estate m o rt
gages;
$250,000.00—Feeding Cattle;
$100,000.00 — B u tter, eggs, canned
corn and canned peas;
$500,000.00—On all o th er loans.
“One-half of th e to tal of our loans is
m ade on an am ortized basis, giving
us a trem endous turn-over each
m onth.
“W e m ake about six h u n d red loans
a m onth. F o rty p er cent of these are
renew als and 60 p er cent are new
loans. Over 70 p er cent of our m o rt
gage loans are am ortized loans.
“We have, for m ore th a n th ree
years, in su red th e lives of th e m akers
of m ost of our loans and we have
had m ore th a n $20,000.00 of our loans
paid off by th e in su ran ce com pany.
W e feel th a t it is necessary to know
w hen a loan is m ade w h a t w ill h ap
pen if th e m ak er dies. W e do not
w an t to take an y of th e p ro p erty
w hich has been pledged to us for se
curity, an d we have discovered th a t
we build up good w ill in cancelling
our debts w here th e m ak er dies, ra th e r
th a n filing our claim s and forcing th e
w idow or children to liquidate. W e
found th a t w hen ev er you forced a
w idow to pay, you w ere tearin g dow n
good will.
“We also c arry ‘e rro r and om ission’
in surance policies on all p ro p erty
pledged to us for secu rity so th a t in
case th e ow ner of th e p ro p erty failed
to m ain tain adequate fire and w ind
storm insurance, or in case his policy
w ould expire, or in case th ere w as no
policy w ritten , we w ould be protected
by our ow n ‘e rro r and om m ission’
policies.
“It w ill be a source of com fort to the
m anager of any co u n try b ank to know
th a t his in stitu tio n is protected w ith
every know n k ind of insurance, not
only to cover th e p ro p erty pledged for
security, b u t also in m ost instances
to cover th e lives of th e m akers of
his notes.
109
-•
“A g en eratio n ago b a n k ers w ere so
liciting deposits an d declining loans.
T oday th e rev erse is tru e. A re you
able to m eet th is change? If you are
not, you are tre a d in g on dangerous
ground. T h ere n ev er w as a g re a te r
need for reso u rcefu l b a n k m an ag e
m en t th a n a t th is v ery tim e. I have
n ot lost fa ith in th e ab ility of our
b an k e rs b u t I do feel th a t th e y m u st
be aroused to th e ir responsibilities.
“I feel th a t th e re n ev er w as a b e tte r
o p p o rtu n ity to m ake m oney in a coun
try bank. Those of you w ho have s u r
vived th e p ast depression are in a
b e tte r position to guide our in s titu
tion s th ro u g h a n y th in g th a t m ig h t
hap p en in th e fu tu re an d those of you
w ho have e n te re d th e b an k in g field
since 1933 have th e h isto ry of w h a t
has h ap p en ed as a guide.”
S T O R IN G R E C O R D S
EORGE D. GRIMM, au d ito r of th e
N ational S h aw m u t B ank, Boston,
in B a n kers M o n th ly says his b an k
studies th e need for re ta in in g old rec
ords an d fixes a definite d estru ctio n
date for all records not k e p t p erm a
nently. H e says in part:
“E v e ry bank, no m a tte r how sm all,
is often appalled a t th e m u ltitu d e and
v a rie ty of records w h ich it seem s
n ecessary to retain . T he larg er th e
bank, th e g re a te r th e volum e of re c
ords w hich m u st be retain ed . F o r
th is reason, a b an k like ours m u st
conscientiously stu d y its storage and
d estru ctio n of records proced u re in
o rd er to utilize storage space an d
th e re b y avoid outside re n ta l expense.
“In o rd er to accom plish this, we
adopted a v ery definite system for
keeping essen tial records w ith p ro p er
approval for destro y in g old an d u se
less ones. T his w e call our ‘A rchive
Schedule’ w h ich is a w o rk in g m an u al
in loose-leaf form for th e archives de
partm en t. I t h as enabled us to find a
place for every th in g , an d still not have
our sto rag e space becom e congested.
“O ur loose-leaf schedule, a rra n g e d
by d ep artm en ts, is approved by th e
vice p re sid e n t in charge of operations,
th e a u d ito r an d th e m an ag er of th e
respective d ep artm en t, w hich affords
th e arch iv es m an ag er w ith definite
au th o rity for w h a t he does. A day of
th e m o n th is designated for each de
p a rtm e n t w h en records of th a t d e p a rt
m e n t a re due in th e archives, th e re b y
p ro v id in g as w ell as possible a dis
trib u tio n of th e storage w ork.
“T he schedule indicates th e storage
life of records, w h en th e y m ay be
destroyed, how th e y are packed, and
w h ere th e y are stored. F o r exam ple,
G
IO WA
NEWS
•
according to our rules, th e com p
tro lle r’s d ep artm en t keeps ledger
cards in th e d ep artm en t for one year.
T h en on F e b ru a ry 9 of each y ear th e
accum ulated cards are delivered to th e
arch ives d ep artm en t to be kep t p e r
m anently. On F e b ru a ry 9 also, all
o th e r records w hich are to be stored
for th e com ptroller’s d ep artm en t are
delivered to th e archives.
“As a n o th er illu stratio n , th e issue
d e p a rtm en t keeps “m em o and check
orders from v arious d e p artm en ts’ for
ap p ro xim ately th re e m onths.
On
J a n u a ry 27, a th re e m o n th s’ accum ula
tion is sen t to th e archives, and every
th ree m onths th e re a fte r th ro u g h th e
year, since these records are due in
th e archives q u a rte rly on th e 27th of
th e m onth. The records are retain ed
by th e archives d ep artm en t for a speci
fied period, afte r w hich th ey are
destroyed. The record indicates th e
period for w hich th e y are to be held
in th e archives. If, as is freq u en tly
th e case, no period is show n u n d er th e
archives colum n of “storage period”
such records are im m editely destroyed
by th e archives departm ent.
“It seem s advisable in some cases,
Scarborough &Co.
invite you to meet
“MR. M-Q”
at the
IBA CONVENTION
DES MOINES
September 8, 9,10.
in the
Scarborough Exhibit
“ WHERE OLD FRIENDS M EET”
Northwestern Banker September 19 i l
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
110
•
such as in th e d estru ctio n of cash
ie rs’ checks, to have a crem ation cer
tificate p rep ared by th e archives de
p artm en t. If such certificate is re
quired, an X ap p ears in th e colum n
headed ‘CC\
“The period selected for th e re te n
tion of records m u st an d w ill v a ry
depending upon law s governing th e in
dividual bank.
“To obtain th e co nsent of y o u r a t
to rn ey s before in stitu tin g a d e stru c
tio n record is likely to destroy all
chance of its installation, for a tto rn ey s
I O W A
N E W S
•
are prone to suggest th a t all records be
re ta in ed indefinitely.
A practical
view point m u st be adopted, therefore,
based upon y o u r p ast experience as to
call for such records and seasoned
w ith a know ledge of ju st w h at ex
pense or loss resu lted by inability
to produce any given record. W e
base our periods of reten tio n on such
experience.”
pleased to receive a telegram recently
from th e F ed eral R eserve Board a t
Chicago, statin g th a t “you have been
elected to m em bership in th e F ederal
R eserve System , effective today.”
P resid en t W. F. S to u tn er states th a t
th e S ecurity S tate B ank is th e only
b ank in K eokuk county th a t is a m em
ber of th e F ed eral Reserve.
Federal Reserve Member
Officers Elected
T he officers and directors of th e Se
c u rity S tate B ank of K eota w ere
Federal Home Loan Bank of Des Moines
Des Moines, Iowa
STATEMENT OF CONDITION AUGUST 1, 1941
R ESO U R C ES
A dvances to M em b ers........................................................................................................................ $14,509,739.33
U . S. G overnm ent O b lig a tio n s.................................................................................................... 1,768,000.00
Accrued. In te re s t R eceiv ab le.........................................................................................................
50,813.79
D eferred C h a r g e s ..............................................................................................................................
20,324.72
A cco u n ts R eceivable ......................................................................................................................
225.50
C ash ...........................................................................................................................................
7,160,881.11
A t th e an n u al stockholders’ m eeting
of th e C entral Savings B ank and T ru st
Com pany of E m m etsb u rg th e follow
ing officers w ere elected:
W. H. B renton, Des Moines, p resi
dent; George Kelly, D allas Centdr, vice
president; Wm. Z unkel, E m m etsburg,
vice p resid en t and cashier; Wm. E a
gan, E m m etsburg, a ssistan t cashier.
D irectors elected w ere W. H. B renton,
Des Moines; George Kelly, Dallas Cen
ter; W. P alm er W ilson, Dallas C enter;
Dr. H. M. H uston, R uthven; Guy
Campbell, W m. E ag an and W m. Zun
kel, all of E m m etsburg. O ther em
ployes of th e local b an k w ere also
retained.
$23,509,984.45
L IA B IL IT IE S
C ap ital Stock S u b s c rip tio n s ....................................................
^D ebentures O u ts ta n d i n g ...........................................................
P rem iu m s on D e b e n tu re s........................................................
D eposits .........................................................................................
A ccrued In te re s t P a y a b le ........................................................
S u rp lu s:
R eserves .....................................................................................
U ndivided P ro fits .................................................................
.........................$10,306,000.00
........................ 11,500,000.00
........................
14,811.68
........................
822,792.78
........................
45,670.10
$624,554.68
196,155.21
To our good friend Frank Warner, who has just completed
25 years as Secretary of the Iowa Bankers Association, we
We are
proud to have worked with Secretary Warner and the Iowa
Association during these m any years during which they have
contributed so much toward sound banking in this state. Happy
d ays to Secretary Warner — and a long life to the Iowa
Association!
The Peoples Savings Bank—
CEDAR RAPIDS, IOWA
O F F IC E R S
F r a n k C. W elch, P r e s id e n t
T. R. W a rrin e r, V ice P r e s id e n t
W m. R in d erk n ech t, J r ., V ice P re s id e n t
P a u l H . H u sto n , V ice P r e s id e n t
E . F . Stepanek, C ash ier
F . O. M ekota, B re tt D ishong, A ssista n t C ashiers
-------.------------------------------------------------
M em ber Federal D eposit In su ra n c e C orporation
Northwestern Banker September 19’f l
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
H en ry O. B u tterw o rth , 77, u n til six
y ears ago a director of th e W all Lake
Savings Bank, passed aw ay recen tly
a t his sum m er hom e in R ochester,
New York.
820,709.89
$23,509,984.45
* P a rtic ip a tio n in S75,500,000 consolidated Fed eral H om e L oan B ank debentures o u tsta n d in g ,
w hich a re th e jo in t and sev eral o b lig atio n s of th e tw elve F e d e ra l Home L oan B anks.
extend heartiest congratulations and all good wishes.
Banker Passes Away
______________________
Economic W ar
P resid en t R oosevelt’s recen t appoint
m ent of an Econom ics Defense Board
is generally reg ard ed as proof of th e
A dm in istratio n ’s in ten tio n to wage
economic w ar ag ain st th e Axis on a
big scale. T he Board is headed by
V ice-President W allace, and its o ther
m em bers are th e S ecretaries of State,
W ar, Navy, T reasury, Commerce, and
A griculture, and th e A tto rn ey G ener
al. The im p o rta n t position of execu
tive secretary has been given to W. W.
Riefler, a professor of economics at
Princeton, and a form er econom ist
for th e F ed eral R eserve Board.
Econom ic w arefare w ill m ean the
use of all th is c o u n try ’s v ast resources
to advance th e cause of dem ocracies,
and to oppose th e purposes of th e dic
tatorships. A s ta rt has been m ade in
the case of Japan. T he A dm inistration
is obviously p rep ared to squeeze the
little island em pire to th e lim it. Our
p resent F a r E a ste rn policy says, in ef
fect, th a t if Jap an w ill call off h e r c u r
re n t program of conquest, w e w ill
B ank fix tu r es and tim e lock s a fe fo r
sa le cheap, Z. G. H ouck, B e lle v u e , Iow a.
Ill
•
continue to buy h e r silk and sell h er
th e raw m aterials she so sorely needs
—w hile if Ja p an in sists on going
ahead in th e E ast, she need expect
n o th in g else from us th a n ru th le ss
econom ic sanctions and possibly a
naval w ar.
W hen it comes to G erm any, our
technique m u st of course be different.
We have had alm ost no trad e w ith th e
Reich since th e w ar began. B attle
ground of th e trad e w a rfare in th is
case w ill be L atin A m erica. Despite
all our p ast efforts, G erm any is still
a big factor in m any countries south
of th e Rio G rande. Job ahead is to
destro y G erm any’s L atin A m erican in
fluence, and d isru p t h e r plans for b a r
terin g h e r m an u factu red goods for
South A m erica’s ra w m aterials.
A t th e m om ent, it looks as if m ost
of South A m erica is read y to play
along w ith th is governm ent. Uncle
Sam isn ’t loved w ith o u t reserv atio n
dow n South, b u t th in k in g South A m er
icans reg ard him as a far b e tte r friend
th a n H e rr H itler. In th e case of South
A m erican coun tries w hich h esitate to
adapt th e ir econom ic and m ilitary pol
icies to ours, polite th re a ts of tra d e
penalties and even m ilitary p ressu re
m ay be used. T his g o v ern m en t is
dead certain th a t South A m erica m u st
IOWA
NEWS
•
Iowa Presidential Candidates
A R T H U R T. D O N H O W E
M AX
VON
SC H R A D ER
A rthur T. D onhow e, vice presid en t of th e C entral N ational B ank & T ru st
Company, Des Moines, and M ax von Schrader, cashier of th e U nion B ank &
T ru st Company, O ttum w a, are th e tw o candidates for th e office of president
of th e Iowa B ankers A ssociation, th e election to take place at the ann u al con
v ention in Des Moines. Ballots w ill be cast a t the opening of the last session
of th e convention on W ednesday m orning, Septem ber 10.
M R . BANKER:
W hen you are considering new FLOOR COVERINGS in your bank,
or ACOUSTICAL CEILINGS, let us show you what we are doing for
others and then, what we can do for 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
6?
C O .
FLOORS IN IOWA FOR OVER 15 YEARS
Offices and Display Room: — Hubbell Building Lobby
DES
MOINES,
I O WA
Northwestern Banker September tO'il
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
112
-•
be saved for th e dem ocratic cause if
th e w ar is to be won, an d it w ill not
hesitate to do a n y th in g possible to
keep South A m erica in line.
IOWA
NEWS
•-
V ichy’s com plete sell-out to H itler
w ill also form the basis for U. S. ac
tion. Few will be surp rised if A m er
ican m arines eventually take over
THE COLLIS COMPANY
1903
at Clinton, Iowa
1941
Manufacturer of products from steel, bright basic wire, zinc, lead,
brass, M alaya pure tin, etc., etc.
From the above products the Collis Company fabricate in
their plant Refrigerator Shelves for all types of Refrigerators
—Machine Tools such as Sockets, Sleeves, Chucks and
Arbors—All steel Poultry Equipment for produce houses—
All steel Bakery Equipment for bakeries such as Dough
Troughs, Bread and Icing Racks—Automatic Screw Machine
Parts are handled for other industries—They maintain a Hot
Galvanizing and Hot Dip Tinning Plant. The Collis Company
supply Machine Tools to the U. S. N avy Yards and many
industries now supplying the defense needs of the Country.
THEY BANK WITH
If you think
G reetings
you’re hard to fit
to
come to
Iow a Bankers
The Hew
UTICA
a
a a
Des M oines B an k
an d T r u s t Co.
M artinque and o ther F ren ch Islands
in th is hem isphere. And if Vichy goes
ahead w ith h er plans for a joint
French-G erm an “defense” of strategic
D akar, m any expect th a t we w ill have
to send our N avy in to do the talking
for us. Control of D akar m eans con
tro l over trad e routes and m ilitary
positions w hich are v ital to this hem is
phere. F rom a naval point of view,
D akar is a fairly tough n u t to crack,
b u t our adm irals th in k it could be
done w ith dispatch.
R ussia’s e n try into th e E uropean
w ar, in th e opinion of most, has m ade
our early particip atio n unlikely. F o r
the tim e being a t least, th ere is n o th
ing for us to do b u t send m aterials
abroad. If th e A m erican flag does go
into battle, it is m uch m ore likely to
be in the Pacific or off A frica th a n in
Europe.
Free Advice
P ro p erty ow ners who w ill rep air
and m odernize th e ir houses to provide
hom es for defense w orkers and th eir
fam ilies are being offered th e advice of
architects and technicians — w ithout
cost.
A new service recently established
th ro u g h the office of the Defense H ous
ing C oordinator and th e Home Own
e rs’ Loan C orporation w as being
placed in operation in key defense
areas w here th e housing shortage is
acute. T hrough its facilities, it w as
hoped to m ake 15,000 “ex tra room s”
and ap artm en ts available in th e near
future.
Home ow ners can apply to either
local Home R egistration Offices or
HOLC offices for th e aid of housing
experts, according to an announce
m ent by Defense H ousing C oordinator
Charles F. P alm er and Jo h n H. Fahey,
C hairm an of th e F ederal Hom e Loan
B ank Board, w hich directs the HOLC.
Homes w ith unused space w hich can
be converted into suitable living q u ar
ters w ill be inspected and estim ates of
the cost of rem odeling w ill be made
w ithout charge.
The expenses of rem odeling will
have to be borne by p ro p erty owners,
it w as explained, w ith reim bursem ent
com ing from rent. The HOLC tech
nicians w ill estim ate th e am ount of
310 Sixth Avenue
When Y o u ’re in Des Moines
a m
®
for the Convention
G. B. Jensen, President
Home of Hart Schaffner & Marx
and Fashion Park Clothes
'Northwestern B anker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Banks Sold or Bought!
quietly, quickly and in a personal manner
A. W. Crossan, Vice President
H. F. Gall, Cashier
JAY A. WELCH
IJaddam, Kansas
“35 years Practical Banking
E xperience.”
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
114
PER M A N EN TLY
SHARP!
STUDENTS!
B U S IN E S S FO LK S!
Here’s Your Daily
SU C C ES S COMPANION!
incom e w hich m ight logically be ex
pected and hom e ow ners w ill be as
sisted both in obtaining financing of
proposed im provem ents and th e serv
ices of technicians w ho w ill c arry out
th e w ork at a reasonable fee.
P resid en t Roosevelt has authorized
th e use of $100,000 from his em ergency
fund to em ploy fee technicians to as
sist th e HOLC’s salaried staff w hich in
the p ast few years has directed th e
reconditioning of m ore th a n 550,000
homes.
“T here are th ree m ajor reasons for
This
where
is the
store
men
from
all over Iowa come
every
39% smaller writing point is always
sharp — that means neater figures,
more readable writing, clear carbons,
distinct shorthand.
SPIRAL GRIP for tireless writing.
D ouble length propelling e raser.
Sturdy, precise mechanism; outlasts
all others. Uses double length, strong
FINELINE leads.
season
for
their
D O B B S
Cross Country
HATS
A lasting, welcome gift for anybody,
any time. Just right for your own use,
tool Make FINELINE yours today.
$5
New Fall Styles
N e w Fall Shades
KOCH BROTHERS
PRINTERS - BOOKBINDERS - OFFICE OUTFITTERS
STATIONERS - BUSINESS MACHINES
F R A N K E L ’S
GRAND AV E NUE AT F OUR T H
D E S M O IN E S
Des M oines
FINANCIAL STATEMENT
June 20, 1941
A SSETS
F ir st M ortgage D irect R ed u ction L o a n s ................................................. $2,735,471.26
L o a n s on M em b ers’ S to c k ............................................................................
14,513.96
R eal E sta te Sale C o n tra c ts.........................................................................
235,892.34
R eal E sta te .........................................................................................................
7,550.60
Furniture and F ix tu r e s ...................................................................................
1,500.00
M em b ership S to ck — F ed eral H o m e L oan B a n k ................................
27,000.00
Cash on H an d and D ep o sited in B a n k s ................................................
132,222.79
p ro p erty ow ners to cooperate in this
effort,” said Mr. P alm er’s announce
m ent. “T hey w ill be co ntributing to
th e defense effort in a practical and
effective way; th ey w ill derive new in
come from th e ir properties, and th ey
w ill im prove th e u n d erlying value of
those properties.
“M any hom e ow ners have been w ill
ing to utilize ex tra room s and floors
b u t th e ir places a re n ’t properly
equipped at th e p resen t tim e and they
h av en ’t know n how to proceed. U nder
th e new program , th ey w ill be fu rn
ished w ith th e p roper advice and di
rection. D uring th e last w ar, 185,000
housing u n its w ere provided th ro u g h
conversion of existing houses and we
are in a position to do a b etter job
now .”
Mr. P alm er pointed out th a t th e
m ore use th a t can be m ade of presen t
housing, th e less danger th ere w ill be
of real estate “headaches” from over
building. He added th a t th ere w ere
m any advantages in utilizing existing
houses because th ey already are ade
quately supplied w ith utilities, paved
streets, schools and provision for recre
ation.
“C onversion and m odernization of
existing p ro p erties w ill also ease the
stra in on th e m aterial m ark et,” said
Mr. Palm er. “Shortages are beginning
to be felt in several m aterials neces
sary for resid en tial construction. F a r
less m aterial in th e critical brackets is
necessary to provide accom m odations
th ro u g h conversion th a n th ro u g h new
construction.
“Com m unities can help conserve
th e ir own resources by helping to pro
vide all th e housing possible th ro u g h
existing stru ctu res.
P riv ate hom e
ow ners and ow ners of ap artm en t
houses w ith v acant units, or vacant
space th a t can be rem odeled into ac
ceptable housing units, should list
th e ir p ro p erties w ith th e Hom es Regis
tra tio n Office in th e ir com m unity.
E ven su b stan d ard dw ellings m ay be
converted into approved housing un its
th ro u g h th e technical assistance th a t
now w ill be available—although, of
course, we w on’t approve any p ro p
erties not fit for use unless w e are
certain th a t th ey can and w ill be
b ro u g h t up to m eet p roper stan d ard s.”
T o ta l A sse ts ............................................................................................... $3,154,150.95
L IA B IL IT IE S
M em b ers’ S a v in g s and In v estm en t A c c o u n ts...................................... $3,033,698.20
L o a n s in P r o c e s s ................................................................................................
42,908.57
R eserve for In te r e s t.........................................................................................
160.96
U n d ivid ed P rofits
................................................................................
77,383.22
T o ta l L iab ilities ....................................................................................... $3,154,150.95
Waterloo Building and Loan Association
E a st F ou rth at W ater S treet
N orthw estern B anker Septem ber 1941
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Savings Stamps
D efense Savings Stam ps soon w ill
be on sale in retail stores th ro u g h o u t
th e country.
YOUR STATE BANKERS ASSOCIATIO N
O FFICIA L SA FE, V A U L T AN D
TIM ELOCK EXPERTS
F. E. D A VEN PO RT & CO.
OMAHA
115
S ecretary M orgenthau announced
th e extension of Defense Savings
Stam p sales to re ta il outlets ev ery
w h ere a fte r a m eeting at th e T reasu ry
D ep artm en t today (Tuesday, A ugust
12), w h en executives of associations
re p re se n tin g m ore th a n a m illion
stores pledged im m ediate p articip a
tion of th e ir m em bers in th e Defense
Savings P rogram . Stam ps w ill go on
sale v ery sh o rtly in d e p a rtm e n t stores,
grocery, drug, variety , fu rn itu re , h a rd
w are, and all o th er types of retail, o u t
lets.
At th e m eeting th e re ta ile rs endorsed
full p articip atio n in “R etailers for De
fen se” W eek, Septem ber 15 to 20, w hen
th e stores of every state w ill concen
tra te th e ir efforts to en list custom ers
to b u y D efense Savings Stam ps. Be
fore th a t tim e, m ost stores from coast
to coast are expected to have D efense
Stam ps on sale.
T he leaders of th e re ta ile rs ’ associa
tions m et w ith S ecretary M orgenthau
an d T re a su ry officials to pro ject the
plan for in itia tin g th e nation-w ide
store effort. The S ecretary expressed
his app reciatio n of th e cooperation ex
ten d ed by th e re ta il organizations, say
ing:
“The D efense Savings P ro g ram is
gaining m om entum ev ery day. The
splendid sp irit show n by th e re ta ile rs
of th e n atio n in p u ttin g th e ir associa
tions b ehind th e sale of Defense Sav
ings Stam ps is su re to have a stim u la t
ing effect in advancing th e w hole P ro
gram . It is an o th e r indication of th e
A m erican d eterm in atio n to proceed
w h o leh earted ly to w ard success in our
N ational D efense effort.
“The th a n k s of th e T re a su ry and of
th e G overnm ent are due th e leaders of
re ta il in d u stry and to th e ir m em ber
stores all over th e n atio n for th e en
th u siasm w ith w hich th e y are e n te r
ing into th e plans for ‘R etailers for
D efense’ W eek, and for th e continuous
activ ity pledged in th e sale of Defense
Savings S tam ps.”
Stam ps w ill be sold in th e retail
stores a t convenient points, th e re p
rese n ta tiv e s of th e re ta il associations
explained. D efense Savings posters
w ill be displayed, and store clerks w ill
help to in te re st custom ers in th e De
fense Savings P rogram .
The re ta il executives said th e y had
decided on th e m erch an d isin g of De
fense Stam ps n atio n ally follow ing th e
success of th e sale of Stam ps in th e
state of M ichigan. On Ju ly 10, th e sale
of Stam ps w as sta rte d in M ichigan re
tail stores to te st th e effectiveness of
th e plan. More th a n 20,000 M ichigan
m erch an ts alread y are selling Defense
Stam ps, and th e retail trad e leaders
rep o rted th e y looked for double th a t
nu m b er of M ichigan stores to be sell
ing Stam ps by th e opening of ‘Retail-
F
R
S
I
E
E
N
R
D
V
L
I
H.
Y
C
H,
E
A
Come to the Bismarck
for luxurious comfort
. . . good food . .. and
th a t e lu s i v e so m e
thing called “friendly
se rvice ” that makes
you feel right at home.
Every modern hotel
convenience is here
at your beck and cal!
. . . and the location
is a t i m e - s a v i n g
convenience.
W rite fo r b o o klet
with map o f
dow ntow n C hicago
OTTO K. EITEL, MN G. DIR.
T H E SHELBY
S A L E S B O O K GO.
Shelby, Ohio
O ffers th e N ew
T e lle r’s Cash Release
EX
E
ESI
We also make forms for every
u se:
Deposit Tickets
Counter Checks
Notice of Return Items
Service Charges
Collection Notices
Ledger Cards— Statements
Letterheads
A ddress inqu iries to the
H om e Office or
L. E. GILBERT
421 Flynn Bldg.
Des M oines, Iowa
or
C. R. BEEBINGER
812 Grand Court
Davenport, Iowa
EXPERIENCE
-OVALITY-
IOW A LITHOGRAPHING C O .
Edwin G . Ragsdale, Secy.— DES MOINES
Northwestern Banker September Ì9M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
116
he ’P A Y C ' plan is a defite step in the rig^
rection and our e x p e l
lee with it has been A-l.
3 have opened approxim
ately 400 new accounts
n a Period of about
onths, with an average
ipening b a i l e e in t
leighborhood of
:..!.M 0 St of our ne. ac3ounts under the
system have been new cus
+ nm p. r S •
’ Name of bank on request
Ask a "U.5." repré se nta tiv e for com
plete Information about the " P A Y C "
plan, or write to —
UNITED STATES CHECK BO O K CO.
OMAHA, NEBRASKA
G reetings!
IOWA BANKERS
■
■
a
EMIL NELSON
COMPTOMETER CO.
420 Hubbell Bldg.
Des Moines, Iow a
N orthw estern B anker Septem ber Í9 b l
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ers for D efense’ W eek on Septem ber
15.
A. A. Im us, d irector of P ostal Field
A ctivities, Defense Bonds and Stam ps,
w ho also attended the m eeting, re
p orted th a t 10,000 additional post
offices th ro u g h o u t the co untry will be
gin selling Defense Stam ps w ith in a
few weeks. T his w ill b rin g to 26,000
th e num ber of post offices offering De
fense Stam ps to th e public.
Follow ing are th e nam es of th e re
tail executives w ho p resented th eir
plan of cooperation to S ecretary Morgenthau: Lewis Cole, N ational Asso
ciation of Food Chains; T yre Taylor,
N ational A ssociation of R etail Grocers;
R obert J. W ilson and A. C. K eller, N a
tional R estau ran t Association; F ra n k
lin Moore and A rth u r H arn ett, A m er
ican H otel Association; Jo h n B. Fitch,
In stitu te of D istribution; Louis Kirstein, A m erican R etail F ederation;
M ajor B. H. Namm, N ational R etail
D ry Goods Association; Thom as K.
Ruff, N ational R etail H ardw are Asso
ciation; J. H udson Hufford, N ational
A ssociation R etail F u rn itu re Dealers;
R oland Jones and A lbert C. Fritz, N a
tio n al A ssociation R etail D ruggists; F.
W. Griffiths, N ational A ssociation of
Chain D rug Stores; and E. C. M auchly,
L im ited Price V ariety Stores Associa
tion. R obert W. Lyons, Special Ad
visor to th e T reasu rer on retail outlets
w as also present.
V arious o ther organizations not re p
resen ted at th e m eeting have also ex
pressed th e ir desire to cooperate in
selling Defense Savings Stam ps.
A t the close of th e m eeting the re
tail rep resen tativ es selected the fol
low ing m en to head th e U. S. T reasu ry
R etailers’ A dvisory Committee: C hair
m an, B enjam in H. Namm, w ho is also
ch airm an of “R etailers for Defense
W eek”; vice chairm an, A lbert C. Fritz;
secretary, R obert W. Lyons. T his com
m ittee w ill serve as a liaison betw een
th e T reasu ry D epartm ent and the re
tail organizations.
Fire Prevention
W idespread support has been ac
corded th e efforts of th e N ational
B oard of F ire U nd erw riters and th e
N ational A ssociation of Insu ran ce
A gents to aw aken cities th ro u g h o u t
th e co u n try to th e realization th a t one
of th e m ost effective defenses against
fire is enactm ent and enforcem ent of
a m odern fire prev en tio n ordinance.
T his fact w as show n by a rep o rt is
sued jointly at th e end of th e first
m onth of th e effort by W. E. Mallalieu,
general m anager of th e N ational Board
of F ire U nd erw riters and by C. W.
Schoelzel, ch airm an of th e fire p re
vention com m ittee of th e N ational As
sociation of In su ran ce Agents.
L aunching of th e nation-w ide pro
gram , w hich seeks to im prove national
defense th ro u g h fire defense, w as an
nounced Ju ly 10. R esponses and re
quests for inform ation and m aterial
have been com ing in constantly ever
since, th e rep o rt said. A condensed
su m m ary of th e scope and ex ten t of
th e in te re st in reducing fires, as evi
denced by correspondence up to A ug
u st 10, show s th e following:
G roups and individuals in forty-two
States and th e D istrict of Columbia
have responded. Am ong them are the
presidents, executive secretaries or
o th er officers of seventeen State asso
ciations of agents—n early 35 per cent
of those in th is category w hose co
operation has been solicited. R equests
for m aterial and additional inform a
tion, accom panied by assurances of
support, have been received from of
ficers of sixty-tw o local associations of
in surance agents — approxim ately 9
p er cent of such u n its w hose support
w as sought.
They A re Corning
to the
Convention
O m ah a
R. R. R ID G E
V ice P re s id e n t
N a tio n a l B ank,
G E O R G E A. M A L C O L M
V ice P re s id e n t and C ashier
D ro v e rs N a tio n a l B ank, C hicago
O m aha
C. L. F R E D R IC K S E N
P re s id e n t
L ive Stock N a tio n a l B ank, S ioux C ity
L. O. O L S O N
C ash ier
M id la n d N a tio n a l B ank, M in n ea p o lis
R A Y M IL L E R
C ash ier
C ap ita l C ity S ta te Bank, D es M o in es
F.
C. H E N E M A N
P re s id e n t
F ir s t N a tio n a l B ank, M aso n C ity
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
V . O. F IG G E
P re s id e n t
D a v en p o rt B ank & T r u s t Co.
B E N S. S U M M E R W IL L
P re s id e n t
Iow a S ta te B ank & T r u s t C om pany, Io w a C ity
118
G REETIN G S!
. . . and a hearty welcome
to visitors to the Iowa
Bankers A sso cia tio n
Convention
GEORGE McCLAREY
NORRIS F. CROSBY
TOM CARRON
PAUL DEAN
A M E R I C A N
L IT H O G R A P H IN G
and Printing Company
BANK
STATIONERS
D ES M O I N E S ,
IOWA
Third and Kcosauqua Way
As a b a n k e r ,
you help to finance the
production of Iowa live
stock. As meat packers,
we help to process that
livestock, a n d find a
market for it. So because
o f our m utual interests,
we are glad to welcom e
you to Des M oines on the
occasion o f your annual
convention. If you’d like
to see a m odern packing
plant in action, com e out
and pay us a visit.
In addition to the cooperation re
ceived from State associations and lo
cal boards, th e rep o rt stated, m ore
th a n 100 individual local agents in
cities and tow ns th ro u g h o u t th e coun
tr y have indicated th e ir desire to help
preserve the n atio n ’s resources against
d estru ctio n by fire by giving active
su p p o rt to this effort.
N um erous indications of su p p o rt al
so have been received from other
sources. State fire m arshals, officers
and m em bers of local fire dep artm en ts
and of firem en’s associations have ex
pressed th e ir w illingness to try to re
duce th e fire losses in th e ir ju risd ic
tions by cooperating in seeking adop
tion of th e m odern Suggested F ire
P rev ention O rdinance of the N ational
Board of F ire U nderw riters. State
ra tin g boards and bureaus, com pany
fieldmen, m ayors of a num ber of cities,
libraries and u niversities and o ther
inform ational and educational in stitu
tions have requested inform ation.
“N early 350 specific req u ests have
been received d u rin g th e first m onth,”
Messrs. M allalieu and Schoelzel re
ported. “B ut even this satisfactory re
sponse does not m easure th e full ex
te n t of the cooperation received. The
w ide-spread in te re st in th e Suggested
F ire P revention O rdinance can b etter
be gauged by th e fact th a t nearly
3,000 copies of th e ordinance have been
d istrib u ted upon req u est d u rin g th e
six w eeks ending A ugust 10.
“T his large d istrib u tio n is evidence
of th e w ish of those acquainted w ith
th e necessity for prev en tin g fires to
create a general aw areness of th a t
J
Des Moines
e ral w a te rs. Air conditioned
s le e p in g room s ... W rite for
inform ation or reservation s.
BANKERS
of confidence
During the convention see the
display of Bookkeeping Ma
chines at 211 Euclid Avenue.
■
■
□
dence in the sto re in w hich
you buy.
S P E C IA L
Josephs diam onds are accu
rately graded, co rrectly priced
Rebuilt motor return
Bookkeeping Machines
and afford a lifetim e of e n jo y
m ent.
Io w an s have chosen
here w ith confidence for 70
$145.00
N. C. Milliron & Co.
Service G uaranteed
J E WE LE RS SINCE 1871
Sixth at Locust— D es M oines
M eat P roducts
'%
A.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
O p p o rtu n itie s for a ll sports
and recreations. Curative min
70 Years
O S E P H S
Old H o m e ste a d
Northwestern Banker September 194Î
FAR MORE TO OFFER BUT
FAR FROM BEING EXPENSIVE
years.
M akers of
•: /;,V,
M IS S O U R I
V
D iam ond p u rch asin g u ltim a te
ly becom es a m a tte r of confi
The Iowa Packing Co.
fact. As an exam ple, the F ire M arshal
of th e State of Indiana requested suf
ficient copies of th e ordinance to en
able him to distrib u te one to each fire
d ep artm en t chief in th e State. Typ
ical also is th e req u est of th e chairm an
211 Euclid Ave
r
Des M oines, Iowa
119
of th e fire p rev en tio n com m ittee of the
A llegheny C ounty (P ennsylvania) Vol
u n te e r F ire m e n ’s A ssociation for
copies to d istrib u te to all of th e fire
chiefs in his association. A nu m b er
of sim ilar req u ests could be cited.”
Such a response at th is tim e of
year is p a rtic u la rly g ratify in g because
m any of those w hose su p p o rt has been
sought are on vacation.
Confidence w as expressed by Messrs.
M allalieu and Schoelzel th a t w hen th e
vacation season is over su p p o rt of th e
effort to have th e ordinance adopted
in cities th ro u g h o u t th e co u n try will
expand rapidly.
Poor Nellie
The p ast te n y ears have w itnessed
an unceasing and ru th le ss attack
ag ain st th e p riv ate electric indu stry .
E v ery w eapon know n to politics has
been used. G igantic tax-free F ederal
p lan ts have been b u ilt to com pete w ith
th e heavily-taxed p riv ate plants. O ut
rig h t gifts of m oney, in addition to
loans, have been m ade to tow ns and
cities for th e purpose of building u n
necessary m unicipal system s. Law s
w hich fairly sh riek injustice, such as
th e notorious H olding Com pany Act,
have been passed. E v ery device of
conscienceless p ropaganda has been
em ployed in an effort to persuade the
A m erican people th a t th e in d u stry
w hich has given th em th e best, th e
cheapest and m ost a b u n d an t pow er
service in th e w orld, is th e enem y of
th e public w elfare, and should be de
stroyed.
D espite th a t, every so often some
utility-baiting official naively inquires
w hy th e in d u stry should be dubious of
th e in ten tio n s of th e politicians. A r
th u r K rock of th e N ew Y ork Tim es,
touched on th a t in a late colum n. The
utilities, he w rites, are in th e position
of Nellie th e B eautiful Cloak Model
in th e fam ous old m elodram a of th a t
nam e. “In th e first act,” says Mr.
Krock, “th e villain tied h e r up before
a buzzsaw , and she w as rescued by
th e hero in th e nick of tim e. In th e
second act he tru ssed up Nellie and
laid h e r on th e tra c k s ju s t before th e
express w as due, and th e hero
snatched h e r up in th e glare of th e
headlights. In th e th ird act, w hen
th e villain approached h e r w ith h o n
eyed w ords, she sh ra n k from him .
W hereupon th e v illain softly asked:
W h y do you fear me, N ellie?’ ”
{ W
e
A i d i n g
• Hundreds
D
W
,E
No in d u stry is m ore eager to shoot
th e w orks on behalf of national de
fense th a n th e utilities. B ut it is p e r
fectly clear th a t th e in ten tio n of the
utility-hatqrs in governm ent is the
sw iftest possible socialization of th a t
in d u stry. U nder a plan m ade by the
F ed eral Pow er Commission, tre m e n
dous am ounts of new gen eratin g ca
pacity w ill be installed d uring th e
n ex t five y ears by th e governm ent
and th e in d u stry alike. To quote Mr.
K rock again, “W hat is to happen to
all th is additional gen eratin g capacity
a fte r th e em ergency is over, is the
question d istu rb in g those w ho oppose
nationalization of in d u stry .” W ill the
governm ent seize the cream of the
pow er business then, and leave the
p riv ate in d u stry w ith a b an k ru p tin g
volum e of debt on its hands, in cu rred
at th e g o v ern m en t’s request, for build
ing capacity w hich is necessary to
defense now?
A definite assurance by governm ent
th a t th e in d u stry w ill be p erm itted to
progress, free of political persecution,
w ould unleash h u n dreds of m illions of
p riv ate capital for pow er developm ent.
A nd g reat new taxpaying assets w ould
be created, instead of gigantic taxexem pt socialized governm ent pro
jects.
of N a t i o n - w i d e
Quality for 76 Years
Diamonds Watches
Jewelry
Silver
C o n ven ie n t
T erm s
W hen
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Pl u m b j e w e l r y s t o r e
W A L N U T A T SIX T H A V E N U E
D ES M O IN ES
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Addressing, Multigraphing,
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IF IT S MORE THAN
Printing.
inches
IT’S TOO HIGH!
L e a r n h o w th e S h a w - W a lk e r N ew L ow
D e s k . . . S h a w -W a lk e r E q u ip m e n t and
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Y our B ank!
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T elephone 4-0106
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Z V I C E A
R . W E S S L IN G , P R E S ID E N T
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Northwestern Banker September 1941
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Federal Reserve Bank of St. Louis
See Them
at the
Iowa Convention
A. G. SAM
V ice P re s id e n t
F ir s t N a tio n s! B ank, Sioux C ity
C H A R L E S S. M c K IN S T R Y
V ice P re s id e n t
T h e N a tio n a l B ank of W a te rlo o , W ate rlo o
H. M. T U R N E R
A ss is ta n t V ice P re s id e n t
C hem ical B ank & T r u s t Co.
N ew Y ork
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Federal Reserve Bank of St. Louis
V E R N E L. B A R T L IN G
A ss is ta n t C ash ie r
F ir s t N a tio n a l B ank, C hicago
JO H N V. HAAS
A ss is ta n t C ash ie r
N o rth e rn T r u s t Co., C hicago
H . N. B O Y S O N
V ice P re s id e n t
M erc h a n ts N a tio n a l B ank, C edar R ap id s
W IL L IA M B. W H IT M A N
A ss is ta n t S e c re ta ry
M a n u fa c tu re rs T r u s t Co., N ew Y ork
These M en W ill Be
In Des Moines
September
8
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C A R L I. J O H N S O N
Second V ice P re s id e n t
C o n tin e n tal Illin o is N a tio n a l B ank
C hicago
F R E D B. B R A D Y
V ice P re s id e n t
C om m erce T r u s t C om pany, K a n sa s C ity
FRA N K M. C O V E R T
A s s is ta n t C ash ier
D ro v ers N a tio n a l B ank, C hicago
L A W R E N C E A. K E M P F
A ss is ta n t C ashier
N o rth ern T r u s t Co., C hicago
H . C. K A R P F
V ice P re s id e n t
L iv e S to ck N a tio n a l B an k , O m aha
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Federal Reserve Bank of St. Louis
F. M . H A M P T O N
A ss is ta n t S e c re ta ry
C en tra l H an o v er B ank & T r u s t C om pany
N ew Y ork
FRA N K FUCHS
A ss is ta n t C ashier
F ir s t N a tio n a l B ank, St. L ouis
122
Iowa News
Jo h n H aack, director, F a rm e rs T ru st
& Savings Bank, W illiam sburg, passed
aw ay A ugust 4th, a t th e age of 80. He
M ERCHANTS
MUTUAL
B O N D IN G
COMPANY
Incorporated 1933
H om e Office
V A L L E Y B A N K B U ILD IN G
Des M oines, Iowa
®
O
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 e c re ta ry a n d M an ag er
—^
HOME
-—J]
FEDERAL SAVINGS
AND LOAN ASSOCIATION
OF DES MOINES
—our
Federally
Insured
up to $5,000 savings ac
counts are the solution to
your investment and trust
problems.
w as a large land ow ner and had served
on th e board since th e b an k w as organ
ized in 1934.
The Gibson Savings B ank recently
com pleted paym ent of th e rem aining
p referred stock. The original am ount
of th e p referred stock w as $15,000.
Bank Loans for Defense
More th a n $1,300,000,000 of com m it
m ents for loans to m an u factu rers for
financing th e production of defense
supplies w as rep o rted to th e A m erican
B ankers A ssociation as o u tstanding on
Ju n e 30, 1941, by 369 banks in 142
cities, according to a high-snotting su r
vey m ade by th e A ssociation and re
leased for publication. The $1,300,000000 of com m itm ents is an increase of
m ore th a n $360,000,000 over the total
on M arch 31st, last.
In order to obtain an indication of
th e tre n d in th e volum e of credit ex
tended for th e financing of defense
orders, th e A. B. A. queried 500 of the
larg er banks th ro u g h o u t th e country.
Of th is num ber, 342 in stitu tio n s in 142
cities replied th a t th ey had o u tstan d
ing on Ju n e 30th, com m itm ents to tal
ing $1,301,066,533 on 7,970 defense
loans.
The survey revealed th a t 75 per cent
of th e com m itm ents w ere m ade w ith
out assignm ents of co n tract and th a t
assignm ents w ere req u ired in only 25
p er cent of th e defense loan tra n sa c
tions.
The 369 banks rep o rted 3,313 loan
com m itm ents for production of sup
plies and equipm ent to taling $505,051,659 and 2,304 for construction w ork
and p lan t facilities totaling $513,236,642.
In addition, th ey rep o rted 2,353
o th er defense loan com m itm ents for
“w orking capital purposes,” totaling
$284,848,232.
BEST PLACE
TO EAT
Bulletin Available
T here is available a sm all supply of
a special issue of th e Safe Deposit Bul
letin containing record of th e proceed
ings of the 1941 N ational Safe Deposit
Convention in Buffalo. The issue in
cludes discussion of several safe de
posit questions of national interest,
com plete tex ts of addresses by individ
uals of recognized ability on various
topics scuh as claims, “freezing” reg u
lations, new business, public relations,
personnel, efficient operation, rates,
etc., to g eth er w ith a record of discus
sions follow ing delivery of the talks.
A ny ban k or o ther organization en
gaged in the safe deposit business any
w here w hich is in terested in obtaining
a copy of th e proceedings m ay send a
req u est th erefo r w ith $1 to Jam es A.
McBain, Secretary, New York State
Safe Deposit A ssociation, 18 Pine
Street, New York, New York.
Bond Representative
The Bond D epartm ent of th e M er
cantile-Com m erce B ank and T ru st
Company, St. Louis, has announced
the ap p ointm ent of R obert B. E w in as
so u th w estern rep resen tativ e. E w in ’s
te rrito ry will include so u th ern Mis
souri, A rkansas, O klahom a and K an
sas.
E w in is a native of Tennessee and a
grad u ate of Baylor M ilitary Academy
and V anderbilt U niversity. F rom 1928
to 1936 he w as associated w ith the
F irs t N ational B ank and T ru st Com
pany, Tulsa, Oklahoma, and from 1936
u n til his p resen t appointm ent w as
connected w ith th e Tulsa office of
F ran cis Bros. & Company, St. Louis
in v estm en t firm. His form er position
w ith F ran cis Bros, w ill be taken over
by M eredith K ilgore of the firm ’s
T ulsa branch.
A professor in one of th e eastern
schools gave his reasons for classify
ing w om en as “angels.” T hey are al
w ays up in th e air; th ey are alw ays
h arp in g on som ething; and th ey never
have an earth ly th in g to w ear.
a t th e
Current divi
dend 3 Y 2 percent.
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G a n u e e itia e i
HOTEL FORT
DES MOINES
S A L E S
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Des Moines, Iowa
Northwestern Banker September 194Î
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INC.
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R O L A N D C. IR V IN E
V ice P re s id e n t
C hase N a tio n a l B ank, New Y ork C ity
D. H . R E IM E R S
P re s id e n t
L iv e Stock N a tio n a l B ank, C hicago
L. K. B IL L IN G S
A ss is ta n t V ice P re s id e n t
C ity N a tio n a l B ank, C hicago
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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 ice P re s id e n t
C o n tin e n ta l-Illin o is N a tio n a l B ank, C hicago
C H A R L E S C. K U N IN G
A s s is ta n t V ice P re s id e n t
A m erican N a tio n a l B ank, C hicago
R. W . W A IT E
V ice P re s id e n t
W ate rlo o S avings B ank, W a te rlo o
CARL T R O U T
A s s is ta n t V ice P re s id e n t
L iv e Stock N a tio n a l B ank, C hicago
124
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B Y S T O P S'tN G A T A N
Ondcx Ç)o Stfdvertiszrs
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 ..........127
A l l i e d M u t u a l C a s u a l t y C o .............................. 40
A. C. A l l y n a n d C o m p a n y ................................... 57
A m e r i c a n H o t e l A s s o c i a t i o n ......................... 61
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 ..................... 101
A m e r i c a n L i t h o g r a p h i n g a n d P t g . Co. . . 1 1 8
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 .. 33
L
G e o r g e L a M o n t e a n d S o n .................................
5
L a S a l l e N a t i o n a l B a n k ...................................... 37
L e F e b u r e C o r p o r a t i o n ......................................... 100
L e s s i n g A d v e r t i s i n g C o ...................................... 122
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 . . . . 30
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 . . . . . 65
L i v e S t o c k N a t i o n a l B a n k , S i o u x C i t y . 68
P r e s t o n L u i n , A m . M u t . L i f e I n s . C o . . . 46
15
B a l l a r d - H a s s e t t C o m p a n y .............................. 61
B a n k e r s T r u s t C o m p a n y ............................. 78-79
B i s m a r c k H o t e l ...........................................................115
V. W . B r e w e r ............................................................ 5 8
H . B. B u c k h a m a n d C o m p a n y , I n c ...........I l l
B u r r o u g h s A d d i n g M a c h i n e C o m p a n y . . 94
C
C a p i t a l C i t y S t a t e B a n k ..................................... 88
C e n tra l L ife A ss u ra n c e
S o c i e t y ............... 42
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 C o . . . 22-2 3
C h a s e N a t i o n a l B a n k ...........................................
8
C i t y N a t i o n a l B a n k — C l i n t o n ........................112
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 ................104
C o m m e r c e T r u s t C o m p a n y .............................. 84
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 ........ 56
C o m p t o m e t e r C o m p a n y .................
116
C on tin en tal-Illin o is N ational B an k and
T r u s t ....................................................................... 27-8 7
C o n t i n e n t a l N a t i o n a l B a n k .............................. 67
J a m e s H. C o p elan d a n d A sso c ia tesN o r t h w e s t e r n M u t u a l L i f e ......................... 48
R . E . C r u m m e r a n d C o m p a n y ......................... 58
11
D a r l i n g A g e n c y - B a n k e r s L i f e C o .......... 47
D a v e n p o r t a n d Co., F . E .....................6 5 - 1 0 8 - 1 1 4
D e s M o i n e s B a n k a n d T r u s t C o .....................112
D es M o in es B u ild in g , L o a n a n d
S a v i n g s A s s o c i a t i o n ......................................... 125
C. J. D e v i n e a n d C o ............................................... 57
D i r e c t A d v e r t i s i n g , I n c .........................................119
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 .......... 70
D r o v e r s N a t i o n a l B a n k ..................................... 28
E
L. E . E l l i s a n d C o .................................................... 45
E l m s H o t e l .................................................................. 118
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 .................... 38
J . C. E n y a r t , I n c ........................
58
E p p l e y H o t e l s C o ................................
125
E p p e r s o n a n d C o ....................................................... 60
F
F a r m a n d C i t y M u t . I n s . A s s n , o f I o w a . 46
W . H . F a u l k n e r - C r u m a n d F o r s t e r . . . . 48
F e d e r a l H o m e L o a n B a n k ................................. 110
F i n a n c i a l A d v e r t i s e r s A s s o c i a t i o n ........... 124
F i r s t N a t i o n a l B a n k , C h i c a g o .................... 35
F i r s t N a t i o n a l B a n k , O m a h a ....................... 64
F i r s t N a t i o n a l B a n k , S t. L o u i s ...................102
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 ............... 82
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
C la u d e F is h e r - C o n n e c tic u t M u tu a l
L i f e I n s . C o .............................................................. 46
G r a d y V. F o r t - E q u i t a b l e L i f e o f l a . . . 52
F r a n k e l C l o t h i n g C o m p a n y .............................114
G
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 ............... 54
G o o d b o d y a n d C o m p a n y ................................... 58
Me
M c G u i r e , W e l c h a n d C o .....................................
N
N a t i o n a l B a n k o f W a t e r l o o ............................ 86
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 ..................... 4
N a t i o n a l F i r e G r o u p ........................................... 50
M. C. N e l s o n , E q u i t . L i f e A s s u r . S o c .......... 48
N e w U t i c a ....................................................................... 112
N i e m a n n , W . K ......................................................... 50
N o r t h e r n T r u s t C o m p a n y ................................. 32
P
P e o p l e s S a v i n g s B a n k ......................................... 110
P h i l a d e l p h i a N a t i o n a l B a n k ......................... 24
R. H. P ic k fo rd , N o r th w e s t e r n M u tu al
L i f e I n s . C o ............................................................
45
P i o n e e r H i - B r e d C o r n C o ................................... 92
P l u m b s J e w e l r y C o m p a n y .................................. 119
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 ............ 52
P o l i c y h o l d e r s N a t ’l L i f e I n s . C o ............... 40
P r i e s t e r a n d C o m p a n y ........................................ 61
P u b l i c N a t i o n a l B a n k o f N e w Y o r k . . . . 70
R
R e a d , T h o m a s B., M u t u a l L i f e I n s . Co.,
o f N e w Y o r k ..........................................................
R e m i n g t o n R a n d I n c .............................................
R o l l i n s , E . H . a n d S o n s ......................................
R u h l a n d R u h l ............................................................
J
J a m i e s o n a n d C o m p a n y ..................................... 73
J o s e p h s J e w e l r y C o m p a n y ................................118
Iv
J. J. K e l l y C o m p a n y ............................................. 60
K o c h B r o t h e r s ........................................................... 114
47
25
55
50
S
S c a r b o r o u g h a n d C o m p a n y .............................109
S c h e d l e r , E . W . , O c c i d e n t a l L i f e I n s . Co. 49
S e c u r i t y N a t i o n a l B a n k .......................................104
S e l t z e r , M a r t i n , K a n s a s C i t y L i f e ............... 48
S e n t i n e l I n s u r a n c e C o m p a n y ......................... 51
S h a w , M c D e r m o t t & S p a r k s ............................ 59
S h e l b y S a l e s b o o k C o m p a n y ............................... 115
S n o w , E d w i n , A e t n a L i f e I n s . C o ............ 44
S t a t e F a r m I n s u r a n c e C o ................................... 50
S t o c k Y a r d s N a t i o n a l B a n k , O m a h a . . . . 62
S t o c k Y a r d s N a t i o n a l B a n k , S t. P a u l . . . . 74
Guest rooms fashioned for 1950-the
smartest dining rooms in America - and
beautiful lobbies - all air-conditioned
for Summer comfort! Dine in the
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DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION
Oldest and Largest
in Des Moines
411 6th Ave.
Dial 4-7119
ELMER E. M ILLER
Pres, and Sec.
HUBERT E. JAMES
A sst. Sec.
M em ber Federal Hom e Loan Bank System
T
T o y N a t i o n a l B a n k ................................................ 90
U
U n i o n B a n k a n d T r u s t C o m p a n y .................. 80
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 . . . .1 1 6
V
V a l l e y S a v i n g s B a n k .......................................... 105
V i e t h , D u n c a n a n d W o o d ................................ 5 6
Special Business Machines
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I n t e r s t a t e B u s i n e s s M e n ’s A c c i d e n t C o .. 47
I o w a D e s M o i n e s N a t ’l B k . & T r u s t Co. .1 28
I o w a L i t h o g r a p h i n g C o ....................................... 115
I o w a P a c k i n g C o m p a n y .......................................118
I o w a S t a t e B a n k ......................................................108
I o w a S t a t e B k . a n d T r . Co., I o w a C i t y . 101
EONTENELIE
O
Office E q u i p m e n t C o m p a n y ...............................125
W . R . O l s o n C o m p a n y ........................................... 74
O m a h a N a t i o n a l B a n k ........................................ 19
P a u l C. O t t o , C o n n e c t i c u t M u t u a l ............. 45
H
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 ...................' 3 6
B y r o n B. H a r t , P a c . M u t . L i f e I n s . C o . . . 49
H a r t f o r d F i r e I n s . C o ........................................ 51
H a w k e y e M u t u a l H a i l I n s . A s s n ............... 52
H o m e F e d e r a l S a v i n g s a n d D o a n ................ 122
H o m e I n s u r a n c e C o ...............................................
7
H o m e M u t u a l I n s u r a n c e Co. o f I o w a . . . . 51
H o m e s t e a d e r s L i f e A s s o c i a t i o n .................. 45
H o n o r R o l l B a n k s ....................................................107
H o t e l F o r t D e s M o i n e s ....................................... 122
60
M
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 .................... 66
C h a s . M. M a x w e l l , C o n . G e n . L i f e I n s . Co. 46
M e r c a n t i l e C o m m e r c e B a n k a n d T r u s t . 96
M e r c h a n t s M u t u a l B o n d i n g C o ....................... 122
M e r c h a n t s N a t i o n a l B a n k ..................................2- 3
M i d l a n d N a t i o n a l B a n k a n d T r u s t ............. 72
M i d - w e s t e r n C a s u a l t y C o ................................... 44
N. C. M i l l i r o n a n d C o ..............................................118
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 .......... 44
M i s s i s s i p p i V a l l e y T r u s t C o .............................. 99
M o n a r c h M u t u a l I n s u r a n c e A s s o c i a t i o n . 49
M o n r o e C a l c u l a t i n g M a c h i n e Co.,
D e s M o i n e s ............................................................ 97
M o r r i s P l a n C o m p a n y ............................................116
M o r t g a g e I n v e s t m e n t C o r p ............................. 59
M u t u a l S u r e t y C o m p a n y o f I o w a ............. 52
W a n t A d ....................................................................... 110
W a l l a c e H o m e s t e a d C o m p a n y .......................
6
W a l t e r . C h a r l e s E., C o m p a n y . . . . ............. 67
W a t e r l o o B u i l d i n g a n d L o a n A s s n ...........114
W a t e r l o o S a v i n g s B a n k ................................... 76
W e b s t e r L i f e I n s u r a n c e C o m p a n y ............. 47
W e l c h , J a y A ............................................................... 112
W e s s l i n g S e r v i c e ......................................................119
W e s t e r n M u t u a l F i r e I n s . C o ............ ..
41
W h e e l o c k F C u m m i n s ........................................ 60
W i l l i s a n d M o o r e ..................................................... 51
W i t h e r s , W m . R .. S u n L i f e A s s u r . C o .. 49
W o r k L e t t e r S e r v i c e ............................................119
z
Z aisers
(C om posing Type-writer)
Lightening
L ette r O peners & Sealers
Electro -Poin ter
(P en cil S h a rp e n e r)
W rite
for
No
F u ll Inform ation
O bligation
HARRY E. RU SSELL
The Office Equipment Co.
418 Tenth Stree t
Des Moines, Iowa
119
Northwestern Banker September i 9 f 1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
126
In t h e
DIRECTORS R o o m
Quick
W ant to Try?
The h u m o r of E n g lish cam paign
speeches, a t its best, is u n surpassed.
W hen th e late Jo h n M orley h ad fin
ished an oration by req u estin g his
h ea re rs to vote for him , one m an
jum ped up and shouted: “I ’d ra th e r
vote for th e devil.”
“Quite so,” re tu rn e d th e unruffled
statesm an, “b u t in case y o u r friend
declines to ru n , m ay I not th e n count
on y o u r su p p o rt?”
He: “I gave h er a kiss th a t lasted
th ree h o u rs.”
She: “How on e a rth could you do it?”
He: “Can you spare th re e h o u rs?”
Need Rain
A Scotchm an in p lan n in g his new
hom e left th e roof off one room.
A frien d asked th e reason for this.
“Oh, th a t’s th e show er,” replied th e
Scotchm an.
Double Talk
Biddy: “I suppose you have been in
th e N avy so long th a t you are accus
tom ed to sea legs.”
Middy: “Lady, I w a sn ’t even look
ing.”
She Decided
Old Maid: “I can ’t decide betw een
th e divan and th e arm ch air.”
Clerk: “Lady, you can ’t m ake a m is
take on a nice com fortable ch air like
th is.”
Old Maid: “O.K., I ’ll tak e th e divan.”
Yankee W it
A m o to rist w as observing a farm er
tillin g a rocky farm in V erm ont, and
rem arked, “H onest, m y friend, I don’t
see how you m ake a living on th is
farm . Look at th e rocks everyw here!”
“I a in ’t as poor as y ’ th in k I be,”
replied th e Yankee: “I don’t ow n th is
farm .”
Day By Day
“Oh, dear,” sighed a p re tty girl in a
resta u ra n t, “I m u st have fo rgotten m y
purse!”
“Allow me to pay,” offered a g allant
male.
She looked a t him w ith care, th e n
sm iled sw eetly.
“No,” she said, “you paid for me
yesterday. L et some one else do it
today.”
Northwestern Banker September 19 M
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A Correction!
Utopia
T oday’s favorite gag: F o r h o urs a
picket w alked up and dow n a busy
stre e t carry in g a sign th a t w as abso
lutely blank. A sked w h at w as the big
idea, he replied, “I ’m looking for a
sponsor.”
The follow ing correction appeared in
a sm all tow n paper: “Our paper carried
th e notice last w eek th a t Mr. John
Doe is a defective in th e police force.
T his w as a typographical error. Mr.
Doe is really a detective in th e police
farce.”
Statistics
Undismayed
R astus w as devouring an apple,
w hich he seem ed to enjoy to his h ig h
est satisfaction. His friend Sambo,
sh ak ing his head said, “Say dare, boy,
y o u ’d b e tte r look out for w orm s in dat
dare apple.” R astus replied, “L isten,
heah, buddy, w hen ah eats apples de
w orm s has to look out fo’ dem selves!”
Jones: “H ow do you spend y o u r in
com e?”
Smith: “A bout 30 per cent for shel
ter, 30 per cent for clothing, 40 per
cent for food and 20 per cent for
am usem ent.”
Jones: “B ut th a t adds up to 120 per
cent.”
Smith: “T h a t’s rig h t.”
External Use Only
Married Name
“W h at’s the ca t’s nam e?”
“Ben H u r.”
“H ow ’d you happen to choose th a t? ”
“W ell, we called him Ben till he had
k itte n s.”
Coroner: “W h at w ere your h u s
b an d ’s last w ords, M adam ?”
W idow: “He said, ‘I don’t know how
th ey m ake m uch profit on this stuff at
$1.25 a quart!’ ”
Memories
Out of Bounds
Small girl at a football m atch scans
the scene w ith eagerness; th en in dis
appointed tones, “M other, I don’t see
an y cripples.”
“Of course n o t yet, m y dear; the
gam e is young. W hat did you expect?”
“W ell, w here are the qu arterb ack s
and halfbacks w ho w ere to play?”
He Knew Them Himself
The passer-by stopped and looked at
th e m an struggling vainly w ith his
broken-dow n car.
“E xcuse m e,” said th e stranger, “b u t
p erh aps I can help you. T here are one
or tw o things I can tell you about your
m ake of car.”
The ow ner straig h ten ed him self up
and looked at th e other.
“Please keep them to yourself, old
chap,” he rem arked, w arm ly, w ith a
glance tow ards th e occupants of the
car. “T here are ladies p resen t.”
A college boy sen t his fath er a bill
to cover his language courses. The
courses w ere item ized like this:
Greek, $50; L atin, $50; G erm an, $50;
Spanish, $50; Scotch, $200.
Modern
G randfather: “Isn ’t it tim e for a
little boy to go to bed?”
F red d y (eight years old): “I do not
know, gran d fath er. A nd it doesn’t
in te re st me, as I have no children.”
Pardon Us
“If
little
w hat
“A
you p u t a m am a duck and five
ducks in a box and shook them
w ould you have?”
box of quackers.”
Silence, Please
F irs t Golfer: “T he tra p s on this
course are annoying.”
Second Golfer (try in g to p u tt): “Yes,
will you please close y o u rs?”
^ ¿ Au
THE ADDING MACHINE YOU CAN TRUST !
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m en to perform faithfully under
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Manufactured since 1903
More than 100 models available
More than 600% increase in the sales of Allen Wales
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Our nearest agency will let you try a machine
without obligation—Telephone them or write us
A L L E N W A LES A D D IN G M A C H IN E C O R P O R A T IO N
4 4 4 Madison Avenue, New York, N. Y.
SALES AND SERVICE IN 4 0 0 AMERICAN CITIES AND IN 4 0 FOREIGN COUNTRIES
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
/ 94 / C on uen tio n
IOWA BANKERS
A S S O C IA T IO N
Des M o i n e s , Iowa
September 8th- 9th- 10th
A
ll roads
lead to D es M oines lor tlie 1941
convention oi the Iow a B ankers A ssociation.
W e look forw ard to w elcom ing custom ers
a n d friends com ing to D es M oines for this
im p o rtan t m eeting.
O n your arrival w e hope you w ill drop in
to see us. if th ere is a n y th in g w e can do to
m ake your C onv en tio n visit m ore p lea sa n t an d
profitable w e shall he h ap p y to serve you.
IOWA-DES MOINES NATIONAL BANK
& T r u s t C o m pa n y
Member Federal Deposit Insurance Corporation
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
@FedFRASER