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SEPTEMBER
1943

Official W AC P h o to
S E L L IN G W A R B O N D S
T h e S e c r e ta r y o f th e T re a su ry , a g o v er n o r o f a s ta te , th e g o v er n o r’s w if e , a s ta te
ch a irm a n o f th e W a r B o n d C o m m ittee, and a p r e s id e n t o f a F e d e r a l R e se r v e B a n k .
Y o u w ill find th eir n a m es on p a g e 9

A . B. A . W a r Service Meeting

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

Iowa W a r W o rk Conference
Pages 81 to 118

A “BANKERS” BANK!
Through 62 years the Merchants National Bank
has operated under the same name— and the same,
continuous management. Through friendly service
and safety it has won the loyal patronage of many
hundreds of correspondent banks in the middle
west.
On this sound record we invite you to enjoy a
helpful connection at this bank.

OFFICERS
J ames E. H amilton, C hairm an
S. E. Coquillette, P resident
H. N. B oyson, Vice P resident
Roy C. F olsom, Vice P resident
Mark J. Myers, Vice Pres. & C ashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, Vice P resident
F red W. S mith , Vice P resident
J ohn T. Hamilton II, Vice P resident
R. W. Manatt , A ssistan t C ashier
L. W. B roulik, A ssistan t Cashier
P eter B ailey, A ssistan t Cashier
R. D B rown, A ssistan t C ashier
0 . A. Kearney, A ssistan t C ashier
S tanley J. Mohrbacher, A sst. Cashier
E. B. Zbanek , B uilding M anager

MERCHANTS
NATIONAL BANK
member federal deposit insurance corporation
N o rth w e ster n B an k er, p u b lish ed m o n th ly b y th e D e P u y P u b lish in g C om pan y, a t 527 S ev en th S treet, D es M oines, Io w a . S u b scrip tio n , 35c
per cop y, $3.00 p er year. E n tered as S econ d C lass M a tter J a n u a r y 1, 1895, a t th e P o s t Office a t D es M oines, Io w a , u nd er A c t o f M arch 3, 1879.


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Federal Reserve Bank of St. Louis

edar

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Federal Reserve Bank of St. Louis

Rapids,

Iowa

As o u r arm ed fo r c e s sm ash against th e

As to its ow n p a rticip a tio n , T h e H om e

F ortress o f E u ro p e, th e least we can d o is

In su ran ce C om pany is glad to say that —

to giv e th e m o u r fu llest m ea su re o f su p p ort
by p ro v id in g fu n d s to pay fo r th e p lan es,
g u n s, tanks th ey need.
R em em b er, this is the In vasion you and
all o th er A m erican s h ave b e e n h o p in g fo r
and ask in g for.

B ut In vasion req u ires a

“AU new gross prem ium s collected
b y The H om e for the balance of 194.‘i
are being in vested in W ar B onds—
O V ER and A B O V E its norm al gov­
ernm ent bond purchasesW

Iqt o f m on ey. And now in th is m o n th o f
S ep tem b er o u r G overn m en t is fa ced w ith
the c o lo ssa l task o f b orrow in g 1 5 b illion

a THE

HOME *

d ollars in th e 3rd W ar Loan. A s in d ivid u als
all o f u s m u st in vest to th e lim it — all we
can sp are w ill n o t b e e n o u g h .


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Federal Reserve Bank of St. Louis

NEW
FIRE

★

AUTOMOBILE

YORK/
★

MARINE

INSURANCE

• If you are in need of A dding Machine Equipment
you are privileged to enter with the war produc­
tion board an application on Form PD-1688.
Call our nearest office for further information.
As a part of our efforts to manufacture vital war
supplies w e are also building a limited number
of Adding Machines.

ALLEN W WALES
ADDING MACHINE CORPORATION

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Federal Reserve Bank of St. Louis

4 4 4 Madison A venue, New York, N. Y.

6

Branches, strategically located
throughout the Americas, are
embassies o f trade, serving
National City’s correspondent
banks, businesses a n d in ­
d iv id u a ls id e n tifie d w ith
Inter-American finance and
commerce.

This new home of National
City’s twenty - eight year old
Rio de Jan eiro B ranch is
the latest re -a ffilia tio n of
this Bank’s belief that the
fu tu r e of In te r-A m e ric a n
trade relationship is firm ly
established.

IN C E T h e N a tio n a l C ity B ank o f N e w Y o rk estab lish ed its
first overseas b ra n c h — in Buenos A ires in 1914— th is w o rld ­
w id e b a n k in g o rg a n iz a tio n h as been concerned w ith financing th e
p ro d u c tio n , m an u factu re and m a rk e tin g o f S outh A m erica’s m any
ra w m ateria ls. I t has p layed a co n tin u in g p a rt in th e p ro g ram o f
su pplying and a d a p tin g m odern m ach in ery for efficient developm ent.
N a tio n a l C ity officers and staff h av e been im pressed w ith th e
seriousness o f th e ir re sp o n sib ilities for sh arin g th e ir know ledge
o f in te rn a tio n a l financial problem s w ith th e B a n k ’s custom ers and
friends. T hese m en h av e h a d lo n g personal experience in In terA m erican b a n k in g and are assistin g d aily in fu rth e rin g th e sound
estab lish m en t o f com m ercial re la tio n s betw een th e A m ericas. T hey
w ill be glad to consult w ith you.

S

I N T E R - A M E R I C A N
ARGENTIN A

CUBA

CHILE

BRAZIL

B R A N C H E S

Rio de Janeiro
Santiago
Pernambuco
Valparaiso
Santos
(Buenos Aires') Sao Paulo
COLOMBIA
Plaza Once
CANAL ZONE
Bogota
(Buenos Aires) Balboa
Barranquilla
Medellin
Rosario
Cristobal

Buenos Aires
Flores

Havana
Cuatro Caminos
(Havana)

Galiano

Caibarien
Cardenas
Manzanillo
Matanzas
Santiago

(Havana)

La Lonja
(Havana)

MEXICO

Mexico City

PERU

Lima
PUERTO RICO

San Juan
Arecibo
Bayamon
Caguas
Mayaguez

Ponce
REPUBLIC OF
PANAMA

Panama
URUGUAY

Montevideo
VENEZUELA

Caracas

THE N A T I O N A L C I T Y B A N K OF N E W Y O R K
66 Branches in G reater N e w York
M E M B E R

N orthw estern Banker Septem ber 19^3


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

H ead Office: 5 5 W all Street

F E D E R A L

D E P O S I T

I N S U R A N C E

Correspondents Everywhere

C O R P O R A T I O N

7
"Always Giving Friendly Service"
" W e m oved our little b a n k fro m S life r
to F a rn h a m v ille on J u n e 1, 1943, w ith
only $10,000 c a p ita l a n d $3,000 su rp lu s a n d
out o f e a rn in g s, w e h a v e in c re a s e d our c a p ­
i ta l s tru c tu re to $69,000, a n d w e h a v e p a id
cash d iv id e n d s to our sto c k h o ld e rs o f $13,500. W e h a v e c h a rg e d off our S life r b a n k
b u ild in g in a m o u n t of $1,500. W e h a v e r e ­
duced our $32,500 F a rn h a m v ille b a n k b u ild ­
in g w h ich w e b o u g h t fro m th e re c e iv e r
f o r $3,000 dow n to $1,800.
We have
c h a rg e d off a ll f u r n itu r e a n d fix tu res.
" W e h a v e k e p t our se rv ice c h arg e s dow n
to th e v e ry low est a m o u n t c h a rg e d b y a n y
b a n k , b u t h a v e m ade our m oney b y lib ­
e ra l lo an in g , th e in su ra n c e field a n d a l­
w a y s g iv in g f rie n d ly s e rv ic e .’ ’
O. W. M a d s o N, Cashier,
S e cu rity S a v i n g s B a n k,
F arnham ville, Iow a.

Out More ©f the Sam e"
T h e fo llo w in g letters w ere received fro m N o rth w estern B a n ker
readers. Y o u r view s and o p in io n s on a ny su b ject w ill be gladly
p u b lis h e d on th is page.

’"¡Banking in Wartime"
J. R. Capps, vice p re s id e n t a n d c ash ie r
of th e C e n tra l N a tio n a l B a n k & T ru st
C om pany, D es M oines, g a v e a v e ry i n te r ­
e stin g t a l k b e fo re th e D es M oines R o ta ry
Club re c e n tly on som e of th e p roblem s
fa c in g h is b a n k d u rin g th ese w a rtim e s.
The N o r t h w e s t e r n B a n k e r asked M r.
C apps to p u t in w r itin g w h a t he h a d sa id
a n d th e fo llo w in g le tte r , w e are sure, w ill
be o f as m uch in te r e s t to you as i t w as
to u s:
“ B or som e re aso n s, m ost of w h ic h I
b e lie v e a re p o litic a l p e c u lia ritie s , th e
'p o w e rs t h a t b e ’ in W a sh in g to n , h a v e n o t
seen fit to e s ta b lis h b a n k in g as a n es­
s e n tia l in d u s try .
A s a re su lt, a p p ro x i­
m a te ly 40 p e r c e n t o f our re g u la r em ­
p lo y es w ere ta k e n in to th e a rm e d fo rce s.
F ro m 10 to 20 p e r c e n t e n te re d th e v a r i ­
ous w a r a c tiv itie s o f a n e sse n tia l n a tu re
a n d m an y o th e rs le f t b a n k in g to ta k e up
o th e r a c tiv itie s . O ut of a fo rc e o f a p p ro x i­
m a te ly 125, 86 le f t our em ploy in th e y e a r
1942. A t th e p re s e n t tim e w e h a v e 76
w om en in our em ploy. D u rin g th e p a s t tw o
y e a rs ou r d e p o sits h a v e in c re a s e d 100 p e r
c e n t, a d v a n c in g fro m 30 m illio n to 60
m illio n ; lo an s or th e e a rn in g a sse ts d ro p p ed
fro m 12 to 9 m illio n ; cash a n d e x ch an g e
h a s a d v a n c e d fro m 10 to 20 m illio n . O ur
in v e s tm e n ts in g o v e rn m e n t b o n d s h a v e a d ­
v a n c e d fro m a p p ro x im a te ly six to tw e n ty sev en m illion. W e find, also, t h a t th e r a te
of e a rn in g on our in v e s tm e n ts h a s dro p p ed
m a te ria lly .
' ' D u rin g th e p a s t six m o n th p e rio d we
h a v e a c te d as a d e p o sita ry fo r th e I n ­
te r n a l R e v en u e D e p a rtm e n t. D u rin g th is
six m o n th p e rio d th e y h a v e d e p o site d w ith
us over 700,000 ch eck s to ta lin g n e a rly 100
m illio n do llars. T he m a n n e r in w h ich th ese
fe d e ra l a c c o u n ts a re h a n d le d , m ade it n e c ­
e ssa ry fo r us to use se v e ra l m illio n d o lla rs
of our ow n m oney to a d v a n c e fu n d s so
t h a t p ro c ee d s o f th e se checks could be
p la c e d to th e c re d it of th e g o v e rn m e n t in
a cc o rd an c e w ith th e ir tim e schedule. D u r­
in g th is p a s t six m o n th s p e rio d our in ­

s titu tio n h a s sold a p p ro x im a te ly tw o a n d
o n e-h alf m illio n d o lla rs in th e E , F an d Gr
bonds, m ost of th em on th e sa la ry d e d u c ­
tio n b a sis. W e h a v e also sold a p p ro x i­
m a te ly e ig h t m illio n o th e r bonds. I n h a n ­
d lin g th is fo r th e g o v e rn m e n t, th e cost
to us h a s b e en ra n g in g fro m fo u r to five
h u n d re d d o lla rs p e r m o n th , a n a c tu a l o u t­
la y fro m w h ich th e re is no re im b u rse m e n t.
" D u r i n g th is p e rio d w e fe e l t h a t we
h a v e b e e n o f re a l se rv ice to th e g o v e rn ­
m e n t a n d to o u r cu sto m e rs in h a n d lin g
th e r a tio n b a n k in g a cco u n ts.
W e have
opened se v e ra l h u n d re d of th e s e acc o u n ts,
u sin g th e f u ll tim e o f tw o em ployes a n d
p a r t tim e of o th ers, to h a n d le th e d e ­
ta ils. T h is is p e c u lia r b a n k in g , in t h a t
w e a c c e p t fo r b a n k in g envelo p es p u r p o r t­
in g to c o n ta in coupons or c e rtific a te s r e p ­
re s e n tin g c e rta in n u m b e r o f p o in ts, g a l­
lons or pou n d s. N a tu r a lly th e re is m uch
u n c e r ta in ty a b o u t th e c o rre c tn e ss of th ese
d e p o sits.
T he o nly c e r ta in ty as f a r as
w e a re c oncerned, h o w ev er, is a t th e end
o f each 15 d a y p e rio d , w e b u rn a ll of th e
e v id en ce of th e se d e p o sits, c e rtify in g to
th e g o v e rn m e n t t h a t th is h a s b e en accom ­
plish ed .
" I n lo o k in g up our re co rd s as of th is
tim e, I find t h a t w e h a v e on d e p o sit m ea t
a n d f a t p o in ts b e tw e e n one a n d tw o h u n ­
d re d m illio n ; p ro cessed food p o in ts b e ­
tw e e n tw e n ty -fiv e a n d fifty m illio n ; a p ­
p ro x im a te ly six m illio n g allo n s of g a so ­
lin e ; five h u n d re d th o u sa n d g a llo n s of fu e l
oil; b e tw e e n five a n d te n th o u sa n d p a irs
of shoes; a p p ro x im a te ly one m illion p o unds
o f su g a r a n d even th o u g h r a tio n in g of
coffee h a s b e en e lim in a te d , w e still h a v e
on d e p o sit to th is r a tio n a cc o u n t n e a rly
f o r t y th o u sa n d pounds. T h is is one d e ­
po sit I am a fra id it will be necessary , fo r
us to w rite o ff our books. ’ ’
J . R. C a p p s , Vice P resid en t
and Cashier, C entral N a tio n ­
al B a n k and T r u st Com pany,
D es M oines, Iow a.

' ' I have ju s t finished p e ru sin g th e A u ­
g u st issue of th e N o r t h w e s t e r n B a n k e r
a n d I w a s so m uch in te re s te d in th e e d i­
to r ia l p a g e a n d so closely in a g re e m e n t
w ith y o u r conclusions t h a t I am p ro m p te d
to w rite you. T h is 'o p e n l e t t e r ’ id e a a l­
w a y s d id in trig u e me a n d I hope you dish
o u t a lit t le m ore o f th e sam e o fferin g
la te r o n .”
C. B . S h a p a r d , A ssista n t
Vice P resid en t, M ercantileCommerce B a n k and T ru st
C om pany, S a in t Louis, M is­
souri.

Thank ^ou— Guy W. Cooke
' ' L ooking over a n old card file to d ay
showed t h a t th e F ir s t N a tio n a l ¡Bank of
Chicago h ad a c o n tra c t fo r a d v ertisin g in
th e N o r t h w e s t e r n B a n k e r in 1908— 35
y e a rs ago— a n d p e rh a p s h a d a d v e rtis e d in
y o u r m ag a zin e b e fo re t h a t y e a r. I t h a s
re g u la rly since. T h is b a n k ’s c a p ita l a n d
su rp lu s w ere th e n $15,000,000 w ith d e p o sits
of less th a n $100,000,000, co m p ared w ith
$80,000,000 C. a n d P . a n d d e p o sits of $1,703,000,000 in 1943. T h ere is p ro b a b ly no
a d v e rtis in g fro m w h ich i t is m ore diffi­
c u lt to tra c e d ire c t r e tu rn s th a n t h a t in th e
fin an c ia l field; b u t i t is c e rta in th a t th e
m a n a g e m e n t of th is a n d m an y o th e r sound
b a n k s w ould n o t h a v e c o n tin u e d to a u th o r­
ize a d v e rtis in g o v er a p e rio d of m an y
y e a rs h a d th e p ro c e d u re b e en econom ically
unso u n d .
" C o n ta c ts w ith ‘ the oldest financial jo u r­
nal w est o f the M ississ ip p i’ have been as
p le a s a n t as th e y h a v e b e en e n d u rin g , an d
I hope th e y m ay long c o n tin u e . ’ ’
G u y W . C o o k e , A ssista n t
Cashier, The F ir s t N a tio n a l
B a n k o f Chicago.

"Many Things to Be Thankful For"
" W e s till h a v e m an y th in g s to be t h a n k ­
fu l fo r an d th e im p o rta n t th in g fo r e v e ry ­
one to d a y is to w in th e w a r a n d th e n to
g e t i t p a id fo r so t h a t our c h ild re n an d
th e ir c h ild re n w ill n o t h a v e to p a y fin a n ­
c ia lly fo r o ur m is ta k e s .’ ’
A l b e r t H a lv o r so n , Cashier,
S a in t A n sg a r C itizens S ta te
B a n k , S a in t A n sg a r, Iow a.

(T u rn to page 32, please)
N orthw estern Banker Septem ber 1913


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Federal Reserve Bank of St. Louis

8
*

The Invisible Force that Helps Build Ships
B eh in d the American shipyards now
astounding the world with their pro­
duction records lies the story of
materials.
Take manganese. Insufficiently pro­
duced in the United States, this "starch
of steel” is vital in making plates for
ships. Back before Pearl Harbor, a cer­
tain group of importers in the South
saw the need coming. They decided to
fill warehouses with it, but needed a
bank loan to do the job on the scale

they had in mind. Their local bank,
after loaning them its legal maximum,
called in the Chase National Bank. A
further loan was arranged, and tons
of manganese were brought safely
within American borders.
Today high-grade steel for ships and
many other war needs flows, in part at
least, because of the far-sightedness of
this group of importers, aided by
banking—the invisible force that helps
make munitions.

THE CHASE NATIONAL BANK
O F THE C I T Y O F N E W Y O R K
N orthw estern B anker Septem ber 19'i3

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Federal Reserve Bank of St. Louis

*

SEPTEM BER

1 94 3

F O R T Y - E IG H T H Y E A R

N U M B ER 674

O ldest Financial Journal West of the Mississippi River

C L IF F O R D D E PU Y
Publisher

IN T H IS IS S U E

R A LP H W. M O O R H E A D
Associate Publisher

Editorials

H EN RY H. H A Y N ES
Editor

Across the Desk from the Publisher.

527 Seventh Street,
Des M oines, Iowa
Telephone 4-8163

Feature A rticles

N E W Y O R K O F F IC E
Frank P. Syms
V ic e President
505 Fifth A v e .
Suite 1806
Telephone MUrray H ill 2-0326

★

★

7
12

13
14
16
18
22

24
27
30

Insurance

This month the United S tate s
T rea su ry is conducting another
W a r Bond Drive, and the Am eri­
can public w ill co o p erate, as it
a lw a y s does, to put the cam paign
o ve r the top.
The five persons
on the co v er page of this issue of
the N orthw estern Banker are vi­
ta lly interested in the success of
the drive.
They are, from left
to right, S e c re ta ry of the T re a s ­
ury Henry M orgenthau, J r .; the
G o v e rn o r of Iow a, B. B. Hickenloop er; Mrs. H ickenlooper; the
Women's Chairm an of the Iow a
W a r Bond Com m ittee, Mrs. Louise
J. N ew com b; and the president
of the C h icag o Federal Reserve
Bank, C . S. Young.

★

D ear E d ito r— L etters from O ur R eaders......................................................................
F ro n tisp ag e ..........................................................................................................................
Investing Excess F u n d s......................................A Northwestern Banker Survey
To Feed— O r N ot to F eed................................ A Northwestern Banker Survey
Increased Bank E a rn in g s................................. A Northwestern Banker Survey
A. B. A. W ar Service M eeting.........................................................................................
Women Fill Bank V acancies............................. A Northwestern Banker Survey
News and Views of the Banking W orld........................................ C liffo r d D e B u y
W hat 47 Y ears T au g h t Me.................................................................. C h a r le s B . M ills
Legal D ep artm en t— Receipt and Release?............................ .......................................

★

ON THE COVER

★

10

★

CONVENTIONS
A M ER IC A N BANKERS
A S S O C IA T IO N

Bonds and Investments
Septem ber W ar Bond Drive Im p o rta n t........................................Jam es H. Clarke
Ode to Ration B anking............................................................................ N orm an Sage
Mr. F arm er— 1943 Model........................................................... Howard J. Grämlich

55
57
59

State Banking News
M innesota News ...................................................................................................................
M innesota News N otes.......................................................................... J. E. T yler
Twin C ity News ..................................................................Jam es M. Sutherland
D uluth News .............. ..................................................................................................
South D akota N ew s............................................................................................................
Sioux F alls New s.... ...................................................................................................
N orth D akota New s...................................................................
N ebraska News .........................................................................................................
Ju n io r News ................................................................ ..................John L au ritzen
Omaha C learings ............................................................... .......... ..............................
Lincoln Locals ............. ................................................................... ...........................

63
63
65
66

69
69
71
75
75
76
79

A noth er W ar-W ork Conference— The P rogram
C andidates fo r P re sid en t............................................
See Them a t the Iowa Convention...........................
Iowa A uditors and Ju n io r B ankers Program ....
Twenty-five Y ears Ago..............................................
Asks P. C. A. In v estig atio n ........................................

81
82
86

94
104
113

The Directors’ Room

ST A TE A S S O C IA T IO N S


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

39
43
46
50

Iowa Bankers Convention

A m eric a n B a n k ers A s s o c ia tio n , W a l­
d o r f-A sto r ia H o te l, N e w Y ork C ity —
W ee k o f S ep tem b er 13.
A B A M id -C o n tin e n t W a r tim e T ru st
C o n feren ce, D rak e H o te l, C h ica g o —
O c to b e r 14-15.
F in a n c ia l
A d v e r tis e r s
A s s o c ia tio n ,
E d g e w a te r B ea c h H o te l, C h ica g o —
O c to b e r 19-20-21.

I o w a , F o r t D e s M o in e s H o te l,
M o in e s — S ep tem b er 5-6.

See the People ......................... ............ ......... ........................................... _,T. F. Green
F arm Employes Now Covered.........................................................................................
Give P ublicity to F ire P revention...................................................................................
Get Cash W ith the A pp......................................................................E. Dewey W hite

D es

A Few Short Stories to Make You L au g h .............

118

10

Across

the Desk

From the Publisher

Ibeaü all&n'uf, 'W allace:

jb e a i (lo a u e W aSiitUf,:

P ro b ab ly nothing th a t you have ever said has
surprised us more th an th a t large corporations
believe in “ scarcity econom ics” and are in favor
of holding down production for profit.
W hen mass production has helped to m ake cor­
porations more money, and a t the same tim e re ­
duced the cost of th eir products to the ultim ate
consumer, it is h a rd for us to figure out how your
reasoning brought you to such a conclusion.
In a recent speech you said, “ The corporations
never believed in all-out production. They al­
ways believed in holding down production for
profit. There’s only one program under which
agriculture, labor, and, in my opinion, business
as well, can prosper after the war, and th a t’s allout production.”
C orporations have been for all-out production
from the very beginning.
Do you th in k th a t if H enry F o rd only made
10,000 cars a year instead of more th an a million,
th a t the price per car would be less?
E very effort of every m an u factu rer in Am erica
in the last q u arte r of a century has been tow ards
increasing the num ber of units produced and thus
b rin g in g the cost per u n it down as fa r as the
buying public is concerned.
We will not m ake any m ention of the scarcity
plan of killing the little pigs which you in au g ­
u rated, and, by the same token, we sh o u ld n ’t th in k
you would w ant to bring up this subject as fa r
as corporations are concerned.
No, indeed, the corporations of Am erica are
fo r all-out production, always have been before
the w ar, they have done it during the w ar in m ak­
ing w ar goods, and they will do it afte r the w ar.
You stepped on the w rong political pedal th a t
time, H enry.

E ver since W orld W a r I we have been a mem­
ber of the A m erican Legion, b u t we w ere never
as proud of any national com m ander as we are of
you and the straight-forw ard, h ard -h ittin g way
in which you analyze c u rren t conditions and say
w hat you really think.

N orthw estern B anker Septem ber 1943

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

If you m anage and operate the Memphis, Ten­
nessee, S treet R ailw ay Com pany as well as you
are heading the A m erican Legion— and we are
sure you do—we know your com pany is a real
success.
AVe were especially interested in w hat you
said the other day about p riv ate in itiativ e and
H enry A. W allace’s social revolution, when you
told a Legion Convention th a t “ This nation has
been built with private capital, personal initiative
and individual endeavor. That is what made
America great. Yet there are men high up in
Washington who say we should adopt some form
of communistic or socialistic system.
“ Just the other day a man said, ‘The social rev­
olution is on its way and the devil and all his
angels can ’t stop it.’ That from the Vice Presi­
dent of the United States.
“ Well, Mr. Wallace, perhaps the devil and all
his angels may not be able to stop it, but, by the
eternal God, the American Legion w ill.”
We salute you again as head of the Am erican
Legion, because u n d er your capable leadership
and men like you, l e t ’s hope th a t m any of the
crazy, wild-eyed, ill-considered, demogogic votebaiting, so-called legislative panaceas will eventu­
ally sink into the political pool of oblivion, and
th a t not a bubble will show w here they w ent down.
A gain, we salute you.

11

jbea^i cMetVuf, ¡j. <7'cufia*:
W e have been reading your very m arvelous book
“ Men in M otion” and recommend it most highly.
Y our m any years in Europe, your recent trip s
to the fighting fronts, give you inside know ledge
which is m ost helpful and desirable a t this time.
Y our statem ent th a t our citizens cannot give
to the w orld the F our Freedom s was very thought
provoking and especially when you say, “ The
whole conception of giving or infusing the Four
Freedoms universally is preposterous. It is not
idealism. It is sheer political buncombe, and is
so recognized abroad.”
Y our p en e tratin g analysis of how m uch our
governm ent is p aying our union w orkers abroad,
m any of whom are being paid more th an General
Eisenhow er is sim ply astounding.
“ The governm ent’s policies abroad,” you said,
‘ ‘are undermining the morale of our troops. This
is not the time to pay an American workman
$1,000 a month to fix electric wires on the airfield
at Accra while privates in the United States Army,
working on the same field, are paid $50 a month.
This is not the time to build immense bases such
as we are building in Eritrea with an understand­
ing that only union labor be sent abroad. This
is not the time to play into the hands of labor
racketeers who require that any skilled American
civilian electrician working overtime in Algeria
be paid more per month than General Eisenhower
is paid. This is not the time for anything but
victory. ’’
Keep up your good w ork, Mr. Taylor, because
as you say, we cannot m ake a W PA p ro jec t out
of the whole w orld and expect to survive our­
selves.

declined 17 per cent and dividends paid to stock­
holders were 20 per cent low er” .
W ith a 96 per cent increase in wages and a
decline of 20 per cent in dividends paid to stockhoi clers, would John L. Lewis still think th a t labor
should dem and more pay?
He probably would.
B ut w hat about the stockholders— or d o n ’t they
count.

jbea/i Cddce rU. RicJveni&cJze'i:
W e are sure th a t the initial “ V ” in your name
stands for V ictory and we know it also stands for
vitality, a fte r the terrib le ordeal you w ent th ro u g h
in the Pacific.
W e are very much interested in the statem ents
you made a fte r your recent re tu rn from a 55,000
mile trip to the fighting fronts, when you said,
“ Russia may come out of this war the greatest
democracy in the world, while if we continue to
move toward the left as we are doing we may
easily be bolshevik at the end of the war. ’’
This country has certainly been going to the left
fo r ten years and l e t ’s hope th a t it will tu rn to
the rig h t before this w ar is over.
W hen you came back from one of your previous
trips, you told us w hat the boys on the fighting
fro n t thought about Labor strikes, and all of the
Labor Union leaders gave you hell, b u t it d id n ’t
seem to bother you much.
The only trouble, Mr. R ickenbacker, was th a t
you spoke the tru th , and th a t was w hat h u rt, and
we th in k you are speaking it now. So, keep on
telling us the tru th and it will help us to get
properly orientated, both before and a fte r the
w ar is over.

5beaSi cM-e+ituf j). M antfentltau,, fll.:
'jbeaA

lAJ. Jlam an t:

W hen you had your very in terestin g discussion
of w ar profits w ith your friend, W illiam Rose
Benet, in the Saturday Review of Literature, we
hope you sent a copy of it to your esteem ed friend,
Jo h n L. Lewis, who thinks th a t all the corpora­
tions in the U nited S tates are m aking so much
money th a t every laborer should have his wages
doubled.
The. statem en t w hich interested us most was the
com pilation of your figures from 40 big companies
engaged largely in the production of w ar m aterials
w hich show, “ Sales between 1940 and 1942 were
up 81 per cent; wages were up 96 per cent, and
taxes increased 193 per cent while net profits

Everyone of us is ready to do our p a rt in your
3rd W ar Loan drive sta rtin g in Septem ber to
raise billions more from individuals fo r the war.
B ankers have already dem onstrated th eir p a­
trio tic d u ty by either buying for th eir banks or
helping to sell to individuals over 85 per cent of
all the w ar bonds th a t have been sold so far.
The bankers will continue to help you, Mr.
M orgenthau but on your p a rt w hy d o n ’t you use
your influence to cut out needless w aste and ex­
pense in governm ent affairs so th a t more of our
m oney will go for really w inning the w ar and less
of it for governm ent extravagance.

N orthw estern Banker Septem ber 19^3

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

12


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

13

Investing BXCCSS Funds
A

Northwestern Banker Survey

W ith Emphasis on G overnm ent Bonds, H ere Is How a
Num ber of Bankers A re Finding O utlets
fo r Their Extra C ash
ru n n in g on about a 30 p er cent cash

— H ow are you in ­
reserve.
O ther percentages are as
vesting you r excess funds?
follows:
Please list percentages of your
T otal G overnm ent O bligations of
various types of investm ents, such $11,000,000 is 53.26 p er cent of total
as local loans, govern m ent bonds, deposits of $20,652,000; State, County
etc., as such percentage relates to and M unicipal Bonds of $769,000 is
3.72 p er cent of total deposits; O ther
you r total investm ent.
u e s t io n

Q

Fighting a Land Boom in
This Section"
G. O. VAN DERVEER
C ash ie r
State Bank of Wav erly
Wav erly, Iowa

H ow are we in v estin g excess funds?
W ell, we are scouring th e c o u n try for
choice farm loans, m ak in g tow n p ro p ­
e rty loans, looking for feeder loans,
m ilch cow loans; in fact every k in d of
good loans.
T hen we buy U. S. Bonds—and we
are m ostly b u ying U. S. Bonds—di­
viding th em half and half betw een
% p er cen t certificates and 2 per cent
or IV2 p e r cen t longer te rm bonds.
W e are still hoping th a t legitim ate
business w ill pick up, so th a t we can
get good loans. But, Lord, how we
are fighting a land boom, in th is
section.

Bonds of $341,000 is 1.65 p er cent of
to tal deposits; Total In v estm en t Ac­
count of $12,124,000 is 58.7 per cent of
total deposits.
Of our In v estm en t and G overnm ent
Bonds, $6,730,000 m atu re w ith in five
y ears and rep resen t 61.1 per cent of
our G overnm ent Bond Account. The
balance of $4,270,000 in G overnm ents
all m atu re w ith in 10 years. Our total
In v e stm en t A ccount, including Gov­
ern m en ts and O ther Investm ents,
equals 58.7 p er cent of our deposits.
Due to an increase in deposits from
J a n u a ry 1, 1942, w hen th ey w ere
$13,700,000 to deposits as of the presen t
date of $23,000,000, coupled w ith good
crops and good prices, we have had a
co n stan tly increasing su rplus of funds

for investm ent. We have k ep t a high
percentage of our in v estm en ts in shorttim e G overnm ents, including Bills and
T reasu ry Certificates of Indebtedness.

"H a v e No Set Rule for
Making Investm ents"
R. O. MESSERSCHMIDT
President
First National Bank
West Des Moines, Iowa

In these days, we, like practically all
o th er b anking in stitu tio n s, experience
g reat difficulty in th e profitable em ­
ploym ent of our funds. In fact, it ju st
is not done. W e have no set rule as
to percentages in various types in vest­
m ents. We endeavor to keep a sh arp
lookout for any good loan we can
m ake and at th e sam e tim e, increase
our holdings in th e securities of our
governm ent, hoping th a t some tim e,
in th e not too d ista n t fu ture, m oney
will again occupy a pro m in en t place
in our m arkets, as th a t is th e real
com m odity we banks have to sell.
(T u rn to page 101, please)

"Bulk of G overnm ents
M ature W ithin Five
Y e a rs"
RALPH M. WATSON
President
N orth w e st Se c urity National Bank
Sioux Falls, South Dakota

A t th e tim e of a re c e n t exam ination
w hen our bonds w ere segregated and
appraised, the re su lts w ere as follows:
Total D ep o sits........................$20,600,000
G overnm ent
O bligations. $11,013,000
State, C ounty &
Mun. Bonds .
769,000
O ther Bonds .
341,000
T otal Bond A c c o u n t ............ 12,124,000
Total Loans
3,537,000
Cash and Due from B anks
5,800,000
F ro m th is you will see we have been

A bove, C. E. M oehling, le ft, a s s is ta n t c ash ie r, a n d G. O. V an D erveer, cash ier,
S ta te B a n k o f W a v e rly , Io w a, a re e n d e a v o rin g to find new o u tle ts fo r th e in v e s t­
m e n t o f excess fu n d s o f th e ir b a n k .

N orthw estern B anker Septem ber 1943

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

14

To Feed —or

Not to

Feed

A Northwestern Banker Survey
U ncertainty Regarding C o rn and Livestock Prices A p ­
parently H as Farmers Bewildered. In This Survey Bankers
G iv e Their Opinions as to How Farm ers in Their C o m ­
munities A re A ffe cte d by the Lack of Stabilized Feeding
Conditions
— w h a t has been
the effect on the farm ers of
your com m unity of the uncertain­
ty of corn and livestock prices? If
the price of corn goes m uch high­
er, can farm ers afford to feed it
to hogs and cattle at the present
m arket?
u e s t io n

Q

"Farm ers Losing M oney on
Controlled M arket"
L. W . RO SS
Vice President
Citizens S ta te Bank
Oakland, Iowa

O akland is th e cen ter of one of th e
larg est cattle feeding te rrito rie s in th e
corn belt. The m ajo rity of our farm ers
feed som e cattle every year, and th e
in d u stry in itself is th e “bread and
b u tte r” for th e O akland te rrito ry . Our
farm s are equipped w ith w a te r su p ­
plies, bunks, silos, g rin d ers and lots,
and each is a beef producing factory
in itself. It is th e hub of th e w heel
aro u n d w hich th is com m unity re ­
volves.
In m ost cases feeders paid too m uch
for th e ir cattle last fall and w in ter,
and on th e p resen t controlled m arket,
are losing money. The feeder him self
is p a rtly to blam e for th is b u t not al­
together.
E veryone k new feeding
cattle w ere too h igh on th e p revailing
fat cattle m ark et, b u t p a rtly from a
sense of p atrio tic duty, and p a rtly be­
cause it w as th e ir custom to feed
cattle, th ey w en t ahead and paid th e
price. All th ro u g h th e y e a r th e feel­
ing has p revailed th a t som ething
w ould hap p en to raise th e ceiling on
cornfed beef so these cattle could be
m ark eted w ith o u t loss. T his has never
happened.
T his d idn’t happen, and it probably
w ill not happen, so long as th e Gov­
ern m e n t does not differentiate be­
tw een grass-fat beef and corn-fat beef.
A t p resen t th e re is little spread be­
N orthw estern B anker Septem ber 1943

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Federal Reserve Bank of St. Louis

tw een the two. W ith th e G overn­
m ent purchasing, I believe, 37 per cent
of all th e beef, it n atu ra lly creates a
se lle r’s m arket. A nd since grass-fat
cattle seem to look as good to the
G overnm ent as corn-fat, it p u ts the
G overnm ent in direct com petition
w ith th e feeder buyer.
W e are led to believe th a t a pow er­
ful bloc of congressm en from the
ran g e countries are, in a way, re ­
sponsible for th is condition. It is
our u n d erstan d in g th a t 12 of th e m ore
im p o rtan t com m ittees in the House
are headed by Texans. T h at th ey
argue, if grass fed beef is good enough
for kings and soldiers it is good
enough for the A m erican public. P e r­
haps, in tim e of w ar, on this basis, we
have no answ er.
A nyw ay, it seem s to be the con­
census of opinion around here th a t
th e G overnm ent does not w an t us to
feed m ore th a n a sm all per cent of our
corn to cattle and hogs. ’Tis said we
should not m ake our hogs too fat, and
grass-fed steers are good enough. Ju st
a sh o rt tim e ago it w as our patriotic
d u ty to m ake our hogs fat to provide
th a t m uch needed grease. Now fat
hogs are a drug on th e m arket.
M any of our feed lots are already
em pty. F o r several y ears now alm ost
as m any cattle w ere purchased in the
sp rin g and fed out on grass, as w ere
pu rch ased in th e fall.
T his year
p ractically no cattle w ere purchased
in th e spring. If p resen t prices on fat
cattle prevail, and th e price of corn
stays about th e same, feeders should
be p u rchased at $12.00 and u n d er for
th e o perator to come out. A t p resen t
th ey vow th ey w ill not buy unless they
can buy feeders in th is bracket.
W h at th ey W IL L do is u n p re ­
dictable.
W ith th e abundance of
feed and th e prospects of an o th er
bu m p er corn crop in th is territo ry ,
m any are sorely tem pted. If th ey stick
to th e ir pledge it w ould seem the
m ark etin g of corn th ro u g h livestock
m ight becom e ju s t an o th er w ar casu­

alty. This w ill lessen th e dem and for
corn and th e E a st w ill get corn to feed
th e ir increased supply of po u ltry and
d airy herds a t a reduced price. And
so, again, th e farm ers of th e Middlew est will be paying p a rt of the board
bill for the u rb an population.

"Lo ts of Pigs fo r Sale by
Septem ber First"
R. A . JO H N S O N
C ash ie r
Bank of Kimball
Kimball, South Dakota

Our corn crop is so poor rig h t
th ro u g h here th ere w ill be very little
cattle feeding. Those feeders w ho still
have th e ir cattle and are forced to buy
corn to finish th e cattle out, are v ery
m uch up against a tough proposition.
The cattle can be sold off grass th is
fall, b u t we look for a poor m ark et
for feeder cattle except dry cows and
two-year-old steers. I t w ill m ean a big
holdover, w hich I th in k is w rong if
th is co u n try is really sh o rt of beef.
Our pig crop is exceptionally large
so th e increase in corn prices w ill h u rt
us m ore on th e hog deal th a n on the
cattle. W e w ill be looking for buyers
for a great m any pigs 30 days or so
from now.

"H o g s A rc Being Fed O ut
Too Light"
A . H . STILLWELL
C ash ie r
First National Bank
Pipestone, Minnesota

Our ban k lies in a p u rely ag ri­
c u ltu ral district, and th e u n c ertain ty
of corn and livestock prices has affect­
ed th e buying of th e farm ers in our
com m unity to a considerable am ount.
In M arch and A pril of th is year th ere
seem ed to be a large supply of corn
as a surplus, b u t du rin g th e m onths
of A pril, May and June, th is surplus
disappeared v ery rapidly and in the
early p a rt of Ju n e our farm ers w ere

buying corn in o th er com m unities
sou th of h ere w h ere th e y had a little
m ore in storage.
W hen th e price of corn w en t up to
aro u n d th e $1.00 m a rk and th e price
of hogs and cattle w en t dow n at the
sam e tim e, th e profit on th e ir feeding
operations w as cut b oth w ays. R ight
now th e re is v ery little livestock b u y ­
ing, especially cattle, and th e farm ers
are feeding out th e ir hogs about 100
pounds lig h te r th a n th e y o rd in arily
have been feeding them . If th e farm ­
er has raised his ow n calves and w as
able to buy corn for 60 cents or less
up to Ju ly of th is year, he w as
able to realize a little profit w hen he
sold them or w ill be able to w h en he
sells th em th is fall. B ut rig h t now
if he has to pay 14% to 16 cents a
pound for feeder stock and th e n pay
$1.00 or m ore a bushel for corn, to ­
g eth e r w ith o th er high priced feeds
for finishing feeding feeder cattle, he
w ill come out a t a loss w h en he sells
these cattle w ith o u t figuring any of
his labor. Our oats and b arley are
n ot tu rn in g out as good as expected
in th e h a rv e st w hich is ju s t beginning
here. W e have a good prospect for
corn if we do not have an early frost.

The cattle situ atio n is different. The
p resen t ceiling on dressed beef is such
th a t our cattle feeders cannot pay th e
price asked for feeders and tak e the
risk of feeding.
If th e ceiling on dressed beef was
raised or a ceiling p u t on feeders our
farm ers w ould p u t cattle in the feed
lot and go ahead. We w ould th en have
a b e tter quality of beef as well as a
larg er am ount of beef in the future.
W e have a large n u m ber of feeders
in th is country, b u t I do not know of
a single m an w ho has th e nerve to
buy feeders this fall.

"U ncertain Prices Discourage
Maximum Production"
E. E. NOVAK
President
State Bank of New Prague
New Prague, Minnesota

The u n certain prices of hogs and
corn is a discouraging featu re in the
m axim um production of pork. L ike­
wise, hig h er prices of corn and con­

breeding and feeding $14.00 hogs or
$15.00 beef cattle. Our best farm w o rk ­
ers have left the farm by th e draft,
and into in d u stry , and th e livestock
in d u stry as a consequence is g reatly
handicapped.

"N o C a ttle Being Bought
fo r Replacem ent"
L. W. TITUS
President
First National Bank
Holdredge, Nebraska

I do not know of a single instance
w here any cattle are being bought for
replacem ent purposes in th e feed lots.
It is very evident th a t farm ers cannot
continue to feed corn at the presen t
prices, to cattle at the m ark et today.
We feel th a t th ere w ill have to be
some ad ju stm en t m ade in th e spread
betw een feeder cattle and fat cattle if
th ere is going to be any great am ount
of finished beef on th e m arket. J u st
how th is should be accom plished we
do not claim to know, b u t we do know

"Present Prices Produce
a G o o d Profit"
f . d.

Mc Ca r t n e y

Vice President
First National Bank
Oakes, North Dakota

I have y o u r in q u iry as to th e effect
th a t corn and livestock prices have
upon th e farm er. It is not v ery appli­
cable to th is section, as our cattle feed­
ing consists largely of w arm in g up
w ith field feeding. Our hogs, of w hich
we raise q u ite a large num ber, are
field fed to about N ovem ber 1, and
th e n finished on corn, b arley and
m illet. P re se n t prices produce our
hog raisers a good profit.
B arn y a rd grass fat, feeders and
Stockers are m oving to m a rk e t in
about a norm al am ount. T he p re se n t
prices produce a good profit to our
grow ers. H ow ever, a re ta il ceiling
w ith o u t a w holesale ceiling is an im ­
possibility. It is a m ess w hen people
cannot buy beef, n o tw ith stan d in g th e
larg est n u m b er of cattle in th e co u n try
we have ever had.

T he p re s e n t ra tio o f corn a n d liv e sto c k p ric e s poses a serio u s p ro b lem fo r f a rm ­
ers, a n d h e re M. B. Guthrie, le ft, c ash ie r, a n d Ben S. Sum m erwill, p re s id e n t o f th e
Io w a S ta te B a n k a n d T ru s t C om pany, Io w a C ity, a re d isc u ssin g th e s itu a tio n
a s i t affe c ts th e m a n y fe e d e rs in th e ir lo ca lity .

"C e ilin g Should Be Put
on Feeders"
W. N. ENYART
Vice President
J a s p e r C ou n ty Savings Bank
Newton, Iowa

Our farm ers can feed hogs on th e
p re se n t price of hogs and could pay
$1.10 to $1.20' for corn.

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Federal Reserve Bank of St. Louis

cen trates w ill influence unfavorably
th e production of pork. The breeder of
hogs m ust tak e m any risks, such as
sm all litters, farrow ing losses, sh o rt­
age of ex p ert help, cholera and o th er
diseases. So, m ark etin g $1.50 corn
w ould be easier and less risk y th a n the

th a t p resen t prices are keeping the
cattle out of th e feed lot, as th e farm ­
ers cannot take th e risk of feeding
th is price g rain to cattle w hich he
raised or purchases.
(T u rn to page 52, please)
N orthw estern Banker Septem ber 19'rS

16

Increasing Bank

EätttittgS

A Northwestern Banker Survey
Reports H ere Tell How Banks A re Increasing Their Earn­
ings by Reducing Interest on Time Deposits, Placing Their
Service C h arg es on a M ore Equitable and More Re­
munerative Basis, and Making More A c tiv e Solicitation
fo r Local Loans
U E ST IO N — W hat are you do ­
ing to increase the earnings
of your hank? W hat m ethods are
you using to obtain local loans?
A re you increasing or m aking any
changes in your service charges?
H ave you reduced you r interest
rates on tim e deposits?

Q

"Reducing Expenses Helps
to Increase Earnings"
RAY C. LANGFORD
Executive Vice President
First National Bank
North Platte, Nebraska

In m y opinion it is alm ost im pos­
sible for any b an k to increase th e ir
earn in g s a t th is p a rtic u la r tim e, for
th e increased w o rk caused by the
selling of bonds, tak in g care of ratio n
banking, and o th er activities of like
n atu re, causes us to pay overtim e to
our em ployes of w hich we are sh o rt
handed; supplies are h a rd to get and
m uch higher, all ten d in g to m ore ex­
pense. A bout all we can do is to w atch
every item and hold the expense dow n
as low as possible, for o u r ra te s have
decreased m aterially in th e p ast y e a r
or so, although our loans are as high
as th ey w ere a y e a r ago as reflected
by our sta te m e n t as of Ju n e 30th.
It is h a rd to secure new loans. W e
have a v e r y a c t i v e G overnm ent
A gency located here, w ho m ake a
b e tte r ra te th a n we can afford to. B ut
we do perso n ally contact o u r custo­
m ers, an d especially o u r borrow ers,
endeavoring to give th e best of service,
w hich has alw ays seem ed to us to be
th e best m ethod of advertising. A
good w ord spoken by o th ers seem s to
get us loans and business.
W e have m ade no change in our
service charges for som e tim e, b u t
are co ntem plating doing so in the v ery
n ear fu tu re, justified, we th in k , by
changing conditions and additional
expense.
At th is tim e we are p aying 1 per
N orthw estern Banker Septem ber 19^3


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Federal Reserve Bank of St. Louis

cent on deposits th a t have been w ith
us for m any years and renew ed, b u t
for some tim e p ast have not tak en
any new ones.

"L a rg e r Earnings From
Investments and Service
C h a rg e s"
A. T. ALTICK
President
Osage Farmers National Bank
Osage, Iowa

I believe our b ank is typical of o ther
Iowa banks, in th a t our deposits have
m aterially increased and our loans
d rastically declined, due to the im ­
proved financial condition of our
custom ers. My observation is th a t
these unu su al conditions offset each
o th er and place our b ank a t least in
a relatively b e tte r earn in g position
th a n p rio r to th e w ar. T his conclu­
sion is based, how ever, upon closely
in v esting th e increased funds avail­
able to offset the loss of incom e
th ro u g h the reduction of local loans.
Since Ju n e 30th, 1942, our deposits
have increased in round num bers,
$600,000; our loans have decreased
$130,000; giving us a total of $730,000
for in vestm ent. D uring this period
o u r U nited States Bond account has
increased $600,500; and our M unicipal
Bond account $135,000, a figure alm ost
identical to th e foregoing one. Our
loss in incom e on our loans am ounts
to approxim ately $7,150 at a 5V2 p er
cent average rate. If our G overnm ent
Bonds purchased w ill yield us 1%
p er cent average in terest, this item
alone w ill m ean $9,000 an n u al income.
T axes have not been taken into con­
sideration — incom e from loans and
recen t g overnm ent purchases both
being taxable. Our increase in income
on our M unicipal Bonds a t 1V2 p er cent
average, is approxim ately $2,025. F rom
these figures it can be seen th a t our
total gross incom e w ill be g reater and
m ore th an offset th e loss on income
from loans. I believe th e in v estm en t

of new funds can be safely invested
in spaced m atu rities up to 10 years in
both g overnm ent and m unicipal obli­
gations. It is also recognized th a t if
a reasonable am o u n t of th e new
m oney flooding into the banks is kept
in sh o rt term governm ents, it is u n ­
necessary in m ost instances to keep
m ore th a n a 20 per cent cash reserve,
u n d er p resen t conditions.
A nother m ethod used to increase
earnings w as th e recen t revision of
our service charges. U nder th is new
schedule five cents per item is charged
for each check, deposit ticket, and
out-of-town item; w ith no credits for
earn in g pow er of balances on any
accounts or any m inim um balances of
$1,000, or less. On m inim um balances
over $1,000, ten cents per h u n d red is
allowed on th a t portion of th e balances
in excess of $1,000. T his m eans th a t
approxim ately 95 p er cent of our
accounts w ill pay us for our services
on a per-item basis, w ith th e sam e
charge m ade to all, regardless of
balances.
W e have m ade no u n u su al atte m p t
to obtain local loans. In fact, we have
been discouraging loans d uring c u r­
re n t tim es, as th e bulk of our loans are
m ade principally to feeders. We do,
how ever, expect some dem and for
livestock loans th is fall, as our farm ers
m ust have some cattle to utilize
roughage and farm efficiently. It h as
been th e w rite r’s observation th a t
w henever loans are reached for, losses
can be expected and w ill occur.
Our p resen t ra te of in terest paid on
tim e deposits is 1 p er cent, com pound­
ed sem i-annually, w ith balances lim it­
ed to $5,000. T his ra te has been in
effect for some tim e and our experi­
ence has been th a t only an extrem ely
sm all reduction occurs w hen rates
are lowered.
Added to th e above picture is th e
fact th a t our total payroll has been
reduced because of th e fact th a t tw o
of our officers are in th e arm ed forces,
and th ey being replaced by girls at

17
low er salaries. W e are not striv in g
for m axim um profits d u rin g these
tim es. Our loan and in v estm en t policy
is p e rh ap s m ore conservative th a n
otherw ise. Because of th is we feel
th a t th is policy w ill pay us g re a t divi­
dends d u rin g an y contingencies w hich
w ill come at som e tim e d u rin g th e
p o stw ar period.

"S e rvice C h arg es Am ount
to Q uite a Sum "
M. J. TWISS

decrease som ew hat. Also we have
g reatly increased our bond account
and th is for th e tim e being som ew hat
fills th e gap of liquidated loans.
B eginning Ju ly 1st of th is y ear the
Lyon County B ankers A ssociation in ­
stalled a new service charge system .
As to th e increase of th e service
charge over th e p rio r system we had,
we cannot say as y et w h at increase
th e revenue w ill be. W e have had
v ery little com plaint and it seem s th a t
the custom ers are well satisfied.

w ith a balance u n d er a certain
am ount. W e now have a schedule
w hich is w orking out nicely and is
bringing in a reasonable re tu rn . This
is necessary as our loans have dropped
approxim ately one-sixth. The m ajority
of our custom ers are farm ers, and as
farm ers have been m aking good
m oney, th ey have reduced th e ir loans
w ith us.
W e have no special m ethod of ob­
tain in g local loans o ther th a n ad ver­
tising. It is well know n in th is vicinity

C ash ie r
Se curity S t a te Bank
Poland, South Dakota

Our local loans have g otten dow n to
w h ere th e incom e is ju s t a sm all side­
line. S ta rtin g th e first of last F e b ru ­
ary, we p u t in a service charge of 25
cents for each account, regardless of
th e size, and a charge of 4 cents per
check a fte r allow ing five free ones.
These fees have am ounted to q uite a
sum , and no kick from th e custom er.
W e are ta k in g over FSA custom ers,
w hen th e y get th e ir loans dow n to a
safe m arg in on th e ir security. Our
in te re st ra te s on tim e m oney rem ain
th e sam e—2 p er cent. W e have tu rn e d
dow n tim e m oney d u rin g th e past
six m o n th s offered to us by custom ers
from o th er localities.

"R ed u ced Interest and
Increased Service
C h a rg e s"
W. S. SHORT
President
Northwest ern S t a te Bank
O range C ity , Iowa

W e have decreased th e ra te of
in te re st w hich we pay on tim e deposits
from 2 p e r cent to 1 p er cent. I t has
also been n ecessary to increase se rv ­
ice charges. Local loans have dropped
about 33% p er cent d u rin g th e last
year. D eposits have increased about
50 p er cent in th e sam e length of tim e.
Our G overnm ent Bond account has
increased from $100,000 to $1,100,000.

"D ire c t Solicitation of
C h a tte l and Real Estate
M ortgages"
RAY A. NOLD
Vice President
Rock Rapids S ta te Bank
Rock Rapids, Iowa

Our m ethod to increase earn in g s
revolves m ore around th e subject of
how to cu rtail decreased earnings. W e
are doing considerable direct soliciting
of farm c h a t t e l a n d r e a l estate
m ortgages. N a tu ra lly th is does not
increase th e loans, b u t it lessens the

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Federal Reserve Bank of St. Louis

L ik e m ost b a n k e rs th ese days, L. B. W ilson, le ft, p re s id e n t o f th e S ta te B a n k of
B ock Is la n d , B ock Isla n d , Illin o is, a n d V ice P re s id e n t B. D. C onnelly o f th e
sam e in s titu tio n , a re tr y in g to find w a y s a n d m eans o f in c re a s in g th e e a rn in g s
of th e ir b a n k .

W e have not decreased our in terest
on tim e deposits for the reasons th a t
we do n ot have a large per cent of
tim e m oney and th a t we only pay 1%
p er cent above th e first thousand
dollars. W e have no tim e certificate
deposits. Our savings account is
m ostly tru ly a savings account, and
we have not encouraged large am ounts
as in v estm en t funds.

"R evised Service C h arg es
Bring in M ore Incom e"
E. S. COOK
Vice President
Pella National Bank
Pella, Iowa

In o rder to increase our
we have revised or changed
ice charges. F o rm erly we
25 cents per m onth on all

th a t th e b ank has funds to loan and
w an ts loans, b u t th e dem and is light.
We pay 1 p er cent in te re st on
savings and tim e deposits. T his has
been reduced from 2 to 1V2 per cent
and th en to 1 p er cent. We are now
considering changing to 1 per cent on
accounts up to $500 or $1,000. We
did consider stopping th e paym ent of
in terest entirely, b ut th a t is quite a
drastic step.

"H a v e Large Investment
In Short-Term Loans"
M. A. LUKKEN

earnings
our serv ­
charged
accounts

President
Alexandria S ta te Bank
Alexandria, Minnesota

Our gain in deposits from Ju n e 30,
1942 to Ju n e 30, 1943 is $612,000. The
(T u rn to page 48, please)
N orthw estern B anker Septem ber 19^3

18

A . B. A .

War Service
Meeting
New York City
September

13 14-15
-

Convention Headquarters
W . L. H E M I N G W A Y
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
P r e s id e n t, M e r c a n tile -C o m m e r c e B an k & T r u st Co., S t. L o u is

IN A L arra n g e m en ts for th e W ar
Service M eeting to be held by th e
A m erican B an k ers A ssociation in
New Y ork City Septem ber 13-15 are
nearin g com pletion, it is announced
at A. B. A. h ead q u arters.
T h ro u g h o u t the tw o and a half days
d urin g w hich th e m eeting w ill be held,
th e p rogram s arran g ed for th e general
sessions and an n u al m eetings of th e
A ssociation’s divisions w ill em phasize
the econom ic aspects of th e w a r and
the w ar functions and services of
banks.
O utstanding am ong th e topics to be
discussed by sp eakers of n atio n al and
in tern atio n al prom inence are those
w hich deal w ith th e post-w ar period
and th e role th a t th e b an k s m ay play
in th e future.
The trip le th em e of th e m eeting—
w ar finance and th e dom estic econo­
my, inter-A m erican fiscal policy, and
in tern a tio n a l fiscal policy—has d raw n
into th e pro g ram a score of speakers
from N o rth A m erica, C entral A m erica
and E ngland.
A nnual m eetings of the A ssociation’s

F

N orthw estern B anker Septem ber 1943


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Federal Reserve Bank of St. Louis

com m ittees and com m issions w ill be
held on Sunday, Septem ber 12, p rio r
to th e opening of the form al sessions.
The program for th e en tire m eeting,
w hich is now su b stan tially complete,
is as follows:

Monday Morning, September 13th
National Bank Division
Call to O rder—P resid en t S. A. P h il­
lips, Vice P resident, F irs t N ational
Bank, Louisville, K entucky.
A ddress of the P resid en t—Mr. P h il­
lips.
A ppointm ent of Com m ittees.
A ddress — “Local E m ploym ent of
F u n d s”, Clyde D. H arris, President,
F irs t N ational Bank, Cape G irardeau,
M issouri.
A ddress — “The N ational B anking
S ystem ”, The H onorable C. B. U pham ,
D eputy C om ptroller of th e C urrency,
W ashington, D. C.
A ddress—Dr. M arcus N adler, A ssist­
a n t D irector, In stitu te of In tern atio n al
Finance, New Y ork U niversity, New
Y ork City.
U nfinished B usiness, New Business,

W ald o rf-A storia Hotel
R eports of Com m ittees, E lection and
In stallatio n of Officers.

Trust Division
Call to O rder—P resid en t Louis S.
Headley, Vice P resident, F irst T ru st
Com pany of St. P aul S tate Bank, St.
Paul, M innesota.
O pening A ddress—F. W. Doty, P resi­
dent, C orporate F iduciaries Associa­
tion of New York City, Vice P resident
and T ru st Officer, Com m ercial N a­
tional B ank and T ru st Company, New
Y ork City.
A ddress—“W ho W ill Be th e T ru s­
tee?”, P resid en t Louis S. H eadley.
A ddress—“T ru st In v estm en t Poli­
cies for the P ostw ar P eriod”, O. M. W.
Sprague, P rofessor of B anking and
Finance, H arv ard U niversity.
U nfinished Business, New Business,
E lection and In stallatio n of Officers.

Monday Afternoon, September 13th
State Bank Division
Call to O rder—P resid en t F ra n k P.
Pow ers, P residest, K anabec State
Bank, Mora, M innesota.
(T u rn to page 107, please)

19

Back the
Attack!
The crucial moment of the w ar is at hand.
Your local committee needs your help to assure
the success of the 3rd W ar Loan.
Bankers with their intim ate know ledge of local
financial conditions can give v alu ab le aid. This
effort cannot fail. BACK THE ATTACK by giving
your local committee all possible assistance.

The Omaha
National Bank

M em ber
FD IC

N orthw estern Banker Septem ber 19'i3

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

Bankers attending the 57th A nnual Convention
of the Iowa Bankers Association — Des Moines,
September 5-Bth — are cordially invited to make
our bank their headquarters.

C EN TR A L N A T IO N A L
BA N K and TR U ST C O M PA N Y
DES M O I N E S

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Federal Reserve Bank of St. Louis

i1 e r

^J~et L

r J

2

. epos 11

Ji n, s u

ra n c e

Co r p o r a t i o n
C

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

22

Women

Fill Bank Vacancies

A Northwestern Banker Survey
V acancies in Banks, C aused by the W a r, Being
C a p a b ly Filled by W om en, A cco rdin g to Reports
M ade to the Northwestern Banker

Q

u e s t io n — H ow are you

m eeting the lack of m an­
pow er in your bank? If one or
m ore of your men are gone, are
you filling the positions, and if
so, hoiv?

" If Governm ent Subsidies
Continue, W e 'll Join the
A rm y O urselves"
J. W. EDGE
President
Tipton State Bank
Tipton, Iowa

E a rly in 1942 th re e of our assistan t
cashiers joined th e N avy and Arm y,
b u t ow ing to decreasing activity in the
bank only one of these w as replaced,
and th a t w ith a lady teller w ho had
years of experience in a form er bank
of this city.
D uring 1943 we have lost one lady
teller to th e M arines, and one book­
keeper to a N u rses’ T rain in g School.
Both of these vacancies have been
filled w ith local girls w ith some p re ­
vious experience, so w hile we have
contrib u ted quite heavily to th e A rm ed
Forces, th u s far we have experienced
no p a rtic u la r inconvenience.
As a m a tte r of fact, if th e govern­
m ent continues w ith its subsidized and
socialized credits th ro u g h th e m any
agencies, th e p resid en t and cashier of
this bank m ay call upon th e ir Demo­
cratic friends to assist them in o btain­
ing a com m ission in th e Arm y, or
b ette r still, get one of these jobs like
given th e H onorable Clyde H errin g
and Nels D. K raschel, and o th er de­
feated politicians.
Unless th e b an k in g business is re ­
tu rn e d to th e banks, th e re should be
no difficulty in obtaining th e req u ired
personnel. It w ill be m erely a business
of accepting deposits and cashing
checks, or th e function of a clearing
house.
W e are all hopeful, how ever, th a t
w hen the w ar is ended our a ssistan t
cashiers, tellers, and bookkeepers will
be re tu rn e d to us, th a t th e g overnm ent
w ill get out of business, and, above all,
N orthw estern B anker Septem ber 19^3

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Federal Reserve Bank of St. Louis

th a t these lam e ducks w ill be th ro w n
out of office and th e A m erican people
p erm itted to enjoy th e freedom for
w hich we are giving so m any lives and
so m uch money.

"G o o d Success W ith High
School G ra d u a te s"
B. F. BAMBENEK
President
First National Bank
Dickinson, North Dakota

W e have had un u su al success in
g ettin g replacem ents for the ban k staff
from our local high school grad u atin g
classes.
W e have also em ployed a m an who
has been out of the banking business
for several years, b u t w as w illing to
re tu rn to the' business in spite of the
fact th a t his salary from o ther tem po­
ra ry w ork w as very m uch higher.

"W a g e s Must Be Increased
in O rd e r to Hold H e lp "
A. J. JORGENSON
President
American National Bank
Sidney, Nebraska

The subject to w hich you refer is
indeed a hot one at th is tim e. In the
case of our b ank w here th e volum e of
business has m ore th a n trebled in the
p ast tw o years, necessitating an in ­
crease in em ployes from eight to 13,
our problem has been a little difficult.
W e lost our assistan t cashier to the
Arm y; also a part-tim e teller who
joined th e W AVES. At this tim e th ere
are only th ree m em bers of our entire
staff w ho have been w ith the b ank as
long as tw o years, tw o of those officers,
and one assistant.
The Sioux O rdnance Depot is located
in th is im m ediate vicinity and is con­
sta n tly try in g to add to its personnel.
Its wage scale is considerably higher
th a n we are perm itted to pay our em ­
ployes.
I can only answ er your question as
to how we are m eeting th e lack of
m anpow er and how we are filling posi­
tions by saying th a t we are em ploying
young sters ju st out of high school and

giving them som ew hat strenuous tra in ­
ing. So far we have lost only tw o of
these apprentices after th ey had a
couple of m onths of training. W e try
to im press upon them the advantage
of perm anency of a b ank job as com­
pared w ith th e constantly changing
em ploym ent in o th er better-paying
jobs th a t are co n stantly being offered.
T hen too, we hold out th e hope th a t
th e W ar Labor Board will, in the nottoo-distant fu tu re, give favorable con­
sideration to our petition for wage in ­
creases for our employes. Should th e
W ar Labor Board decide to refuse our
request for wage increases, th e n I
shudder to th in k w h at w ill happen;
we have used up all our persuasive
argum ents — our em ployes no longer
w ill listen to prom ises; th ey have
gotten to the point w here th ey w an t
“cash on the b arrel h ead ”.
I do not believe b ank em ployes
should be “frozen” in th e ir jobs, b u t I
do th in k banks should be allowed to
pay w ages th a t w ill p rev en t too m any
changes from necessary civilian em ­
ploym ent, such as I consider bank
w ork to be, to w ar jobs. B ank em ­
ployes have never been overpaid and
now th ey seem to be frozen at wage
scales th a t look pitifully inadequate,
after “deductions”, as com pared w ith
em ploym ent constantly offered by the
G overnm ent.

"Present Help Must Educate
New Em ployes"
l. A. HOLLAND
Vice President
Washington State Bank
Washington, Iowa

W e have m ade several changes since
tw o boys left us because of th e w ar,
and are now faced w ith th e possibility
of having tw o m ore called who are in
key positions. T hey are both m arried
w ith dependents b ut no doubt are
quite subject to call w ith in th e new
regulations as to fathers.
W e have not m ade un u su al changes
w hich I feel should have special m en­
tion. We w ere able to h ire a girl to take
the place of one of our tellers, and a
young fellow came back from the A rm y

w ho w as tu rn e d dow n a fte r several
m o n th s of service w ho m akes us v ery
good help. W e have im pressed on all
of our help th e absolute need to edu­
cate our new em ployes and to m ake
th em able to hold up th e ir end of the
w ork as soon as possible. A fter all, we
m u st b rin g th e new help along faster
th a n before.
It seem s to me th a t th e best w ay is
to m eet each problem as it comes up,
m aking th e best of th e situ atio n and
im pressing th e experienced help w ith
th e im portance of carry in g th e load.
A fter all, we can do lots yet if we have
to, and som e of us w ho have so rt of
b roken aw ay from m any jobs will have
to get back in th e h arness. You can ’t
loan th is m oney anyw ay, and we w ill
all feel b e tte r w o rk in g a t th e job at
h and and co n trib u tin g m ore to th e
w ar effort.

"Shortage of Help Keeps
Us Hustling"

h a rd e r th an we ever did, and longer
hours.
In our case, our bank is not large,
and th ere w ere four of us w orking
re g u lar about a year ago. Since th en
our deposits have doubled, and our
reg u lar girl teller joined th e WACs
in October, 1942. We replaced h er w ith
an inexperienced girl. T hen m y son,
an o th er teller, joined th e N aval V5
Cadet Service, and we had to replace
him w ith an inexperienced girl. The
re su lt is th a t we have to w ork, instead
of 10 hours, about 15 hours, and w ith
all th e ex tra w ork of Bond drives,
R ation accounts, etc., it is ju st hard
w ork. B ut we are going to w ork like
hell until we have H itler and Tojo
hung, and w hen it is over we can get
b e tter help again and take it easier.
W hen a person talks to one of those
boys th a t comes back from the fox­
holes, we should not com plain, as th ey
are th e ones th a t get the h ard jolts. W e
m anage to play a little golf once in
a w hile and play a little w ith th e boys,

I recently re tu rn e d from two days’ ad­
ju stin g at Napoleon, L inton, Strassbu rg and Zeeland, and th e en tire
co u n try has a good crop.
The m ain th in g is how to invest
your money. E arn in g s of banks no
doubt w ill be less this year, although I
th in k th a t ours w ill be all right.

"H a v e Not Encountered
Much D ifficulty"
R. A. SWEET
C ash ie r
Story County National Bank
Story C ity, Iowa

We have lost tw o m en to the arm ed
forces. One of these m en we replaced
by a young lady w ho had ju st g rad u ­
ated from high school. The o th er m an
we replaced by h irin g a young m an
who had been em ployed by th e local
post office for several years. We m ay
lose one m ore m an providing pre-Pearl
H arbor fath ers are drafted.
We have not encountered a great

S. O. ILSTRUP
Vice President
Farmers S t a te Bank
D arw in, Minnesota

W e have had a ra th e r tough tim e
keeping and g ettin g help in th is bank.
On Ju n e 4th our a ssista n t cashier w as
d rafted into th e A rm y. W e replaced
him w ith a young girl, and she w as
h ired aw ay from us by a b an k in
W ashington State. My son, w ho re ­
placed her, later enlisted in th e N avy
A ir Corps. Our cashier had already
joined th e A rm y in May of th is year.
W e had one m an in th is b ank for
tw o m onths, b u t he w as too old to
handle th e w ork, so we replaced him
w ith a young m arried man. B ut now
th is m an has been classified A-l, so we
are looking for an o th er man. W e need
a capable m an in th is bank, since th e re
is so m uch w ork here. Our reg u lar
w ork has about doubled, and w ith
looking a fte r Bond sales and R ation
Books, it su re keeps us hustling.
So far we have been ra th e r fo rtu n ate
at th e Dassel S tate B ank, w ith tw o of
our m en th e re classified 4-F, and one
p ast A rm y age. W e did lose a book­
keeper, b u t replaced him w ith a
wom an.

"Less Help and M ore to Do
Means Longer H ours"
F. G. GROSZ
Vice President
Bowdle S ta te Bank
Bowdle, South Dakota

W ith reference to th e m anpow er
question, about th e only w ay we can
an sw er th is is th a t we older m en th a t
are on th e job w ill ju st have to w ork

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

W om en are c a p a b ly ta k in g over m an y o f th e d u tie s fo rm e rly p e rfo rm e d b y m en
in th e P eoples S a v in g s B a n k of C ed ar R ap id s, Io w a, a c c o rd in g to Paul H. Huston,
le ft, vice p re sid e n t, a n d Frank C. Welch, p re sid e n t, w ho a re p ic tu re d ab o v e d is­
cu ssin g th e m an p o w er problem .

including the n in th hole, w hich is
alw ays very im portant.
W hile in May it looked like we
w ould not have m uch of a crop, it now
ap pears th a t we have about tw o-thirds
crop of last year, and it is v ery good.
The people w ill m ake money, and the
m ain th in g is to have a farm or som e­
th in g to sell to them .
We have tw o girls, cashier and
m yself w orking in the bank. We have
a good insurance business, also a good
real estate re n ta l business, w hich all
tak e tim e.
Our condition is not different th a n
m ost all co u n try banks, and I get to
see m any of them , as I go out and do
considerable adju stin g on hail losses.

deal of difficulty in w orking out our
m anpow er problem s.

"G irls Doing a G o o d Jo b
in O ur Bank"
L. L. LILLBBRIDGE
President
Burke S ta te Bank
Burke, South Dakota

W ith respect to the m anpow er prob­
lem in our bank, we have been up
against m uch th e sam e problem other
banks have. The principal m an n er of
m eeting th is situation has been to em ­
ploy girls w here form erly for m any
years th is bank em ployed only men.
(T u rn to page 109, please)
N orthw estern Banker Septem ber 1943

24

New s
OF

THE

V

and
B A N K IN G

ie w s

W O RLD

By Clifford DePuy

It is estim ated th a t th e A m erican
public w ill w a n t betw een 20 m illion
and 25 m illion autom obiles in the first
five y ears afte r th e w ar. T his w ill
m ean th a t autom obile production will
have to approxim ate th e 4,480,000 cars
tu rn e d out in 1929 w hich w as the in ­
d u stries g reatest year.
In a recen t survey m ade by the

T T H E req u est of H arold V. A m ­
b ers, vice p resid en t and general
counsel of th e F irs t N ational B ank of
Chicago, th e Illinois B an k ers A ssocia­
tion has w ith d ra w n his nam e as th e
nom inee for th e vice presidency of th e
A m erican B an k ers A ssociation.
In his le tte r to George R. B oyles,
presid en t of th e Illinois B an k ers Asso­
ciation, Mr. A m berg stated: “V iew ing
all factors, th e re is no likelihood th a t
th e N om inating Com m ittee, w h en it
m eets, w ill discard such a prospect as
R andolph B urgess. ‘R an d y ’ is em i­
n en tly w ell qualified and his long and
w orth w h ile service to th e A ssociation
en titles him to m ost favorable consid­
eration. M oreover, it w ill have been
a long tim e since a New Y orker w ill
have been at th e helm of th e A.B.A.
Incidentally, b u t n o t en tirely beside
th e issue, he is a good frien d of m ine.
I cannot see th a t it serves any useful
purpose to fu rth e r a ‘co n test’ involving
m y nam e, w h en it is now ap p a re n t
th a t at convention tim e circum stances
w ill not fit the condition u n d er w hich
I have been or shall be w illing th a t
m y nam e be sub m itted .”

A

E. C hester G ersten, p resid en t of th e
Public N ational B ank and T ru st Com­
pany of New York, has announced th e
ap p o in tm en t of John T. Barry as
a ssista n t vice p resid en t of th a t in s titu ­
tion. Mr. B arry, w ho has been con­
nected w ith th e St. Louis office of th e
G eneral M otors A cceptance C orpora­
tion for th e p ast 11 years, w ill be
identified w ith th e C orrespondent
B ank D ivision and w ill devote th e
m ajo r p a rt of his tim e to th e middlew est, in w hich te rrito ry he is w ell
know n.
He is a n ative of Illinois an d a
g rad u ate of th e U n iv ersity of Chicago.
He sta rte d his business career in 1924
w ith A. G. B ecker & Com pany, and
becam e associated w ith th e G eneral
M otors A cceptance C orporation in
1927 and served as m an ag er of the
St. Louis office since 1932.
W i l l i a m M. S h e r r i l l , adv ertisin g

m anager, F irs t N ational B ank in St.
Louis, has been appointed ch airm an of
the Public R elations Com m ittee of the
M issouri B ankers A ssociation for the
th ird consecutive year.
N orthw estern B anker Septem ber 1943


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Federal Reserve Bank of St. Louis

C olonel AV. G. E den s, “the traveling
re p re se n ta tiv e ” of th e T erm inal N a­
tional B ank of Chicago, w ill be 80
y ears of age N ovem ber 27, 1943, b u t
you w ould never know it judging from
all of the places he goes, people he
sees, and things he does.
In a recen t le tte r to th e N o r t h w e s t ­
e r n B a n k e r , he said:
“W hile in W ashington I had the
h onor of being received by both of
y o u r Iowa Senators and I also m et all
of th e m em bers of th e Iow a D elegation
including your own C ongressm an P aul
C unningham of Des Moines. I dis­
covered th a t Karl M iles LeC om pte of
Corydon and m yself had m et w hen
atten d in g th e w edding of th e late
Jam es G. A lexan d er and W in nie Jones
at Tuscola, Illinois, m any y ears ago.
Jim , you m ay rem em ber, w as vice
p resid en t of the C entral T ru st and he
lived w ith his fa th e r for a tim e at
Corydon and has an a u n t residing at
Des Moines.

N ational A s s o c i a t i o n of S ecu rities
D ealers, th is group gave its opinion

th a t the m ost favorably situ ated in ­
d ustries w hen th e w ar ends w ill be
1. A utom obiles. 2. C h e m i c a ls , and
3. A irline com panies.

The vote on th e th ree industries
w hich m ay be th e least favorably situ ­
ated after th e w ar w ere 1. M achine
tools. 2. R ailroads.
facturing.

3. A ircraft m anu­

Over 86 p er cent saw postw ar busi­
ness conditions such as to encourage
in v estm en t and 14 p er cent voted no.
A nsw ering th e question “W ill price
control be rem oved soon afte r V day,
37 per cent voted “y es” and 63 per cent
voted “no”.
W. D. M yers, presid en t of th e Cen­
tra l N ational B ank of Alva, Oklahoma,
w ith deposits over tw o m illion dollars,
began his banking business by sw eep­
ing out in a b ank located at E lk City,
K ansas. He m ade m oney in K ansas,

F a rm e rs a re “ re a lly in th e m o n e y ” th is y e a r, as b a n k e rs in a g ric u ltu ra l com ­
m u n itie s c an te s tify . T he above p ic tu re w as ta k e n in n o rth e rn Io w a la s t m o n th
d u rin g th e th re s h in g season. S m all g ra in w a s a b u m p er crop in p ra c tic a lly a ll
se c tio n s of th e m id d le w est.

“Of course
ence stirre d
K inley days
knew Major

th is W ashington experi­
up m em ories of old Mc­
in W ashington, w hen I
H u ll of Des Moines, and
Mrs. De P u y ’s father, th e late Judge
S. F. P routy, and m any others, m em ­
b ers of the Old G uard w ho have long
since crossed over th e G reat Divide.
“W hile in B altim ore for a banquet
I called on b an k friends and in W ash­
ington attended th e an n u al b an q u et of
th e D istrict Association, a guest of
Bob F lem in g of th e Riggs and in
Cleveland looked in on all m y banking
frien d s.”

m oved to Oklahoma, and owns the
bank at Alva, as w ell as o th er banks
in th a t territo ry , b u t w ith so m any
em ployes leaving for th e arm ed serv­
ices as w ell as gettin g jobs in m u n i­
tions factories, Mr. M yers is now back
w here he started from and is again
sw eeping out his own bank.
P reston E. R eed, e x e c u t i v e vice
p resid en t of the F in ancial A dvertisers
A ssociation, in announcing th e ir an ­
nual convention th is year w hich will
be held October 19, 20 and 21 at Edge(T u rn to page 36, please)

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pons are banked like money and Radon Checks are drawn

this nation’-s Banks for assistance in expediting the han­

against deposits —just as Commercial Checks are drawn

dling of America’s far-reaching Plan for the rationing

against dollar deposits. » » And because these Ration

of essential commodities. » » The result is ration banking

Checks require the same degree of protection against

—a procedure which is of inestimable value to Retailers

alteration as dollar checks, they are, in most instances,

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Federal Reserve Bank of St. Louis

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26

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N orthw estern B anker Septem ber 19b3


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Federal Reserve Bank of St. Louis

DEPOSIT

CORPORATION

27

W h a t 47 Years Taught M e
W ith Forty-seven Y ears A ssociation W ith the Banking Business
Th is Author Speaks W ith the Voice of Experience
N E of th e first th in g s I learned
w as COURTESY b u t not in
th e ban kin g business, for I fell
h e ir to it th ro u g h four y ears of ra il­
roading in w hich I served as a tele­
g ra p h operator, a tick et agent, station
ag en t and last of all, as an a ssista n t
in th e tra in d isp a tc h e r’s office.
My su p erio rs in th a t business w ere
gentlem en of th e h ig h est q u ality and
consisted of such m en as H orace G.
B u rt w ho was, afterw ard s, m ade p re si­
d en t of th e U nion Pacific Road.
B eginning as a b an k clerk in Sioux
R apids in 1885, I soon learned th a t
th is m a tte r of courtesy and th e ability
to keep one’s tem p er w hile u n d er
strain , w as a g re a t asset. It enables
one to not only help him self b u t to
help th e o th er m an, and I have alw ays
believed, as a g re a t ad v ertisin g agency
said m an y y ears ago, th a t “we are
ad v ertised by our loving frie n d s”.
H ere let m e relate w h at Clifford
De P u y told m e of advice given him by
fo rm er S enator L afay ette Young. Mr.
Young said th a t in th e m an y tim es he
had been tu rn e d dow n w hen soliciting
business, he had nev er forgotten to
close th e door lig h tly w hen going out,
even th o u g h he w as not only dis­
appointed, b u t mad.
I am now of th e opinion th a t a
b a n k e r should keep m ost of his w ealth,
afte r providing a good hom e, in his
ow n b ank and to keep etern ally w atch ­
ing th a t bank. In o th er w ords, follow
th e old adage “Keep y o u r eggs in one
bask et b u t w atch th e b a sk e t”.
I have learned, to m y sorrow , th a t
it is not best to have too scatterin g a
list of b an k stocks for th ey are in
in stitu tio n s w h ere one has no voice in
th e m anagem ent. I have learned th a t
it is dangerous to ow n too m uch land,
or to have too m uch faith in th e stock
m ark et. In olden days our exam iners
stressed th e advisability of a sec­
ond ary reserv e b u t I learned, w hile
o p eratin g th e Peoples T ru st of Clinton,
th a t these in v estm en ts w ere alm ost
below buying price w hen we w ished to
liquidate.
In N o rth w e ste rn Iow a I w as in a
com m unity w h ere cattle feeding w as
up p erm o st in th e m inds of th e farm ­
ers, and learn ed th e re th a t w hen fol­
low ed carefully it w as a safe business
w h ere the fa rm e r had th e feed and
shelter, and th e hogs to follow the

O


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Federal Reserve Bank of St. Louis

By Charles B. Mills
Moline, Illinois

m ortgages did not fluctuate in price
and as one old friend of m ine so aptly
stated, “I do not have to look in the
Chicago T ribune each m orning to
ascertain w h at m y securities are
w o rth ”.
I learned at an early age to avoid
the “Get Rich Q uick” m en w ho preyed
on the country. Bourke Cochran, the
fam ous D em ocratic politician, once
said th a t w hen a m an offered you
som ething for nothing, it w as best to
call the n earest policem an — and he
w as right.
I learned th a t association w ith such
m en as w ere m y friends in olden days
w as a v ery profitable idea, for th e ir
view s w ere usually v ery sound. I
also learned th a t trav el w as a great
educator.
L astly I have learned th a t I could,
and did, take the cold fist of adversity
on th e chin and come up smiling.

Savings Division Program
CHARLES B. MILLS
Mr. M ills was presid en t of the
Iow a B ankers A ssociation in 1901
and 1902, w hen he was in the ba n k­
ing business at S io u x R apids, Ioiva.
Later he was pre sid e n t of the P eo­
ples Savings B ank, C linton, Iowa,
and su b seq u e n tly becam e president
of the M idland N ational B a n k &
T rust C om pany, M inneapolis.

cattle being fed. I learned th en th a t
too m uch faith should not be paid to
th e value of hogs for th ey w ere, at
th a t tim e subject to cholora.
In those days cattle w ere selling at
not over 40 per cent of today’s prices
and w h eth er we could have operated
successfully on these p resen t m ark ets
I leave to the ju dgm ent of the reader.
I do know th a t cattle p aper w as m uch
sought, in those days, and th a t it w as
an easy m a tte r to carry m uch m ore
pap er of the class th a n one’s pouch
w ould hold. E a ste rn ban k ers w ere
heavy buyers of this paper, and the
business w as seasonable.
I learned th a t the loaning of m oney
on good farm s w as a profitable busi­
ness b u t th a t w as before the G overn­
m ent had m oved in on th e b an k er and
tak en m any of his profits. Good farm

The program has been com pleted for
the annual m eeting of th e savings divi­
sion of the A m erican B ankers Associa­
tion, w hich w ill be held as p a rt of th e
association’s W ar Service M eeting in
New York City, Septem ber 13th-15th,
it is announced by W. W. Slocum, p res­
ident of th e division, w ho is president
of th e U nited Savings Bank, D etroit,
Michigan.
The division’s m eeting w ill be held
M onday afternoon, Septem ber 13th.
The program is as follows:
“Savings and Econom ic S ecurity”—Dr.
H arold G. M oulton, president, The
B rookings Institu tio n , W ashington,
D. C.
“The W artim e Savings P rogram of a
C ountry B ank”—R. N. Downie, pres­
ident, The F idelity State Bank, G ar­
den City, K ansas.
“M aking Savers of Prospective Home
O w ners”—C harles W. Green, F ra n k ­
lin Square N ational Bank, F ra n k lin
Square, New York.
Q uestion and D iscussion H our.
B usiness Session—
R eport of th e P resident.
E lection and installation of officers.
N orthw estern Banker Septem ber

28

A m erican system is a trium ph o f individual in itiative and p riv ate enterprise.
I t has provided economic freedom and a dem ocratic form of G overnm ent. These two
have gone h and in hand and will rise or perish together. ★ ★ Freedom of enterprise is the
keystone o f all freedoms.
he

T

Free enterprise provides o p p o rtu n ity for the fullest expression of the hum an spirit and
individuality. W ith o u t it, the A tlantic C h arter F our Freedom s and all oth er freedoms would
disappear virtu ally overnight. For the inescapable alternative to individual enterprise is
collectivism , the very n a tu re of which destroys all freedoms in its dem and th a t the people
subm it to control by an all-powerful S tate. ★ ★ T h e g reatest m enace to a progressive civili­
zation is the extension of the p aternalistic spirit of governm ent, which has been greatly
intensified during the p a st decade. ★ ★ W hen a governm ent plays the p a rt o f S an ta Claus to
its people, the im pression is given th a t the m oney comes from some m ysterious source, like
m anna from heaven. B u t the h ard facts are th a t governm ent creates no w ealth or income. I t
distributes m oney th a t it has collected from the taxpayers or from the sale of its securities,
which, in tu rn , co n stitu te a m ortgage on future income.
Paradoxical as it m ay seem, the m ore a governm ent borrows
from the people, the greater control it has over their destiny. ★ *
E v ery special favor asked of the governm ent for protection
against the vicissitudes of life — w hether it be by labor, farm ers,
business m en, bankers, or professional groups— im perils the liberty
of all the people. W ith governm ent aid goes governm ent control.
Unless this is checked there grows up a F rankenstein bureaucracy
th a t saps th e v ita lity of the country and leads the people into
bondage. ★ ★ Collectivism or sta te "socialism follows in general a
prescribed p a tte rn . T h e S tate becomes suprem e, w ith the indi­
vidual com pletely subm erged. I f such a system were to be forced
upon our country, the C onstitution and the Bill of R ights, which
guarantee individuals protection against G overnm ent abuses,
would be scrapped. T o m aintain its a u th o rity , the S ta te would
control all avenues of thought and expression. * * T eachers would be forced under o ath to
cham pion the new order “ ideology,” all books on freedom would be burned, and the prescribed
propaganda would su p p lan t the search for tru th . ★ ★ T he church would be under a tta ck ,
religion ridiculed, and freedom of worship forbidden. ★ ★ T he hom e could be invaded under
the slightest pretext. C hildren would become w ards of the State. ★ ★ T h e press would be
m uzzled and the news would largely contain a m onotonous recital of the activities of the S tate
and its high officials. ★ ★ Freedom of speech and assem bly would not be tolerated, and all
policies would be form ulated by the leader and his clique, subject to no public criticism . ★ *
L abor questions would be decided w ith neither the employee nor the em ployer having any
voice in the settlem ent.
In retu rn for the surrender of individual freedom, the S ta te would provide em ploym ent
and subsistence of a sort. B u t all would be com pelled to accept the tasks assigned, and there
would n o t be the o p p o rtu n ity for advancem ent th a t has prevailed in this co u n try for each
succeeding generation. T here would be no tom orrow , for the chains would have been forged

N orthw estern B anker Septem ber 19^3


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Federal Reserve Bank of St. Louis

r

k-

29

DOM

★

★

★

★

★

★

and the power of resistance crushed. ★ ★ T his, then, is the price freemen m ust p ay when they
b a rte r their independence for G overnm ent bread. * ★ T he danger is no t th a t the Am erican
people would deliberately subm it to being shackled for the sake o f G overnm ent bread, bu t
ra th e r th a t a large p a rt of our population m ay be deluded into believing th a t the G overn­
m en t can g u aran tee them security and an a b u n d a n t life w ith o u t w orking for it.
W hen a co u n try has swung to the extrem e of sta te socialism, there is only one direction
in which it can tu rn in order to survive, and th a t is back tow ard the principles underlying pri­
v a te enterprise. R ussia found this to be true, and, after having gone the whole distance of com­
m unism in a period of two decades, again headed tow ard the principles of priv ate capitalism .
T h e lam p of lib erty is burning low today. * * T he eyes of the world are tu rn e d to the U nited
S tates for leadership. In dedicating our lives and treasure to m ankind for the F our Freedom s
of the A tlantic C h arter we should be determ ined to preserve our liberties a t hom e, for it
would be a futile gesture to carry the torch unless our liberties are secure w ithin our own
borders. * ★ As we enter upon the crucial phase of this global w ar, let us be m indful th a t our
generation will “ nobly save, or m eanly lose, the last best hope of e a rth .”
★

★

★

Condensed from an article in our “N ew E ngland L etter .” R eprints of the
full text of the article are available upon request.

NEW

ENGLAND


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Federal Reserve Bank of St. Louis

S

OLDEST

AND

LARGEST

BANKING

INSTITUTION

N orthw estern Banker Septem ber 1943

Do You Know the Difference
Between R6C6/pt and R b/BQSC?
NOW, a M innesota ban k er, carried
certain liability insu ran ce in con­
nection w ith his autom obile. A
question arose betw een him and his
insu ran ce c a rrie r as to w h e th e r his
insurance w as rescinded by m u tu al
agreem en t before its expiration date.
Snow, at the tim e th e question arose,
had possession of th e policy. Did th e
fact th a t Snow had th e policy preclude
the possibility of a rescission?

S

No. R escission of an insurance con­
tract may be accom plished by m utual
agreem ent w ith ou t an actual surrender
of the policy. W hether a rescission
has been accom plished depends upon
the in ten t of the parties as evidenced
by th eir acts.

Scherrer, an Iow a b anker, bought
c erta in p ro p erty in th a t state. He had
a search of th e title records m ade and
it w as show ed th a t th e title he ac­
quired was good. L ater, M axwell as­
serted th a t he ow ned th e p ro p erty by
v irtu e of a previous conveyance th a t
had been recorded before S ch errer ac­
quired the property. On investigation
it developed th a t th e previous recorded
conveyance existed b u t th a t it had not
been indexed in th e county reco rd er’s
index book and, as a consequence, it
had not been b ro u g h t to S c h e rre r’s a t­
tention. Did S cherrer, nevertheless,
acquire good title?
Yes. One sought to be charged w ith
con stru ctive notice of a recorded in ­
stru m ent in Iow a is not bound to look
beyond the county recorder’s index,
and u nless the in stru m en t is indexed,
there is no such notice. If there is no
in dex of an in stru m en t in the county
recorder’s in dex book, a searcher after
titles has the right to assu m e that no
such in stru m en t is on file or of record.

Two N e b r a s k a resid en ts w ere
charged w ith conspiring to defraud
th a t state of certain funds. T hey w ere
tried separately. The first trie d w as
found guilty and th e second tried w as
found not guilty. As a re su lt of th e
acqu ittal of th e second, should th e con­
viction of th e first be reversed?
No. In N ebraska, w h ere tw o persons
N o r th w e ste r n B a n ke r S e p te m b e r 1943


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

These and O th er Tim ely Legal
Questions A re Answ ered

By the
LEGAL DEPARTMENT

'

are charged w ith a conspiracy and one
is convicted, the acquittal of the other
upon a separate trial does not affect
the p revious con viction. In so holding
in a recent decision, the N ebraska Su­
prem e Court said that the su bsequent
acquittal of the other indicates only a
failure of proof as to him . In cid en tal­
ly, in that d ecision the court overruled
an earlier d ecision in w h ich it had held
that the acquittal of an alleged cocon­
spirator entitled the one convicted to
be discharged.

Fobes, a N ebraska farm er, owned a
sm all farm outside of an incorporated
city in th a t state. M axwell ow ned an
adjoining farm and fed cattle, sheep
and hogs thereon. The stream also
ra n th ro u g h M axw ell’s tra c t and stock
feeding w as generally engaged in in
th e neighborhood. Fobes sought to
enjoin M axwell from his stock feeding
activities b u t w as unable to show that,
as a re su lt thereof, a nuisance w as cre­
ated. Should Fobes prevail in his in ­
ju n ctio n suit?
No. The feed in g of cattle, sheep and
bogs along a sm all stream outside of
any incorporated city, and w here stock
feed in g is gen erally engaged in, may
not be enjoined at the instance of a
n eigh borin g landow ner in the absence
of evidence sh o w in g th at a nuisance
w as thereby created. The N ebraska
Suprem e Court so held in a recent deci­
sion, citin g N ebraska and W isconsin
cases in support of its ruling.

F arrell, a South D akota banker, em ­
ployed a housem aid to w ork in his
home. W hen she left his em ploy she
executed in his favor, w ith o u t consid­
eration, an in stru m e n t th a t provided
it w as a “receip t” in full for all sum s
due from him to her. A ctually a dis­

pute existed betw een them as to w h eth ­
er th e b an k er owed h er money. The
housem aid later sued for the am ount
she claim ed w as due. W ould the in ­
stru m e n t she signed p rev en t h er from
recovering?
No. In a recent case in v o lv in g sub­
stan tially sim ilar facts the South Da­
kota Suprem e Court so held, p ointin g
out that “receip ts” are to be d istin ­
gu ished from “relea ses” and th a t the
form er are on ly evid en ces of the ex­
tin g u ish m en t of debts w h ereas the lat­
ter operate to d istin gu ish indebtedness.

D ickersback, a South D akota banker,
w as appointed executor of an estate.
The statu tes of th a t state req u ire the
exhibition of claim s against an estate
to the executor or a d m in istrato r at his
place of residence or business. Dick­
ersback gave notice th a t claim s should
be presented to him a t th e office of a
nam ed a tto rn ey at a certain place.
W as such notice sufficient to com ply
w ith th e statutes?
Yes. The South D akota Suprem e
Court, citin g certain C alifornia deci­
sion s as precedents, recen tly held a
notice of the type m entioned in the
question to be sufficient to com ply
w ith the requ irem en ts of the statu tes.
Tn doing so, it stated that the place
designated should be understood to be
the execu tor’s “place of b u sin ess” for
the purpose of tran sactin g the b u si­
n ess of the estate.

H arrin g to n executed in favor of
L ight in N orth D akota certain prom ­
issory notes. The notes w ere not paid
w hen th ey fell due. By reason of v a ri­
ous tran sactio n s L ight sued H a rrin g ­
ton in equity to have established on
certain real estate a lien in su p p o rt of
the notes. A» decree w as entered in
favor of H arrin g to n in th a t suit. Sub­
sequently L ight sued H a rrin g to n at
law for a m oney ju d g m en t on the
notes. W ould th e fact th a t L ight w as
unsuccessful in the first suit preclude
a recovery in th e second suit?
No. A judgm ent in a form er suit be­
tw een the sam e p arties is not res adjudicata in a su bsequent action w here it

31

^rrTTTTnÏÏililll

SEED
CORN
Is Prime Collateral
For Bank Loans

•
W A R E H O U S E OF
ST. PAUL TERMINAL WAREHOUSE CO.
P U B LIC W A R EH O U SIN G
ST PAUL - M ILW A U K E E-D ET R O IT
DE5 MOINES- C H IC A G O .

Picking, processin g an d m arketing seed
corn w ill b e BIG BUSINESS in Iow a in
the m onths a h e a d . . . callin g a g a in for
ex ten siv e financing b y the Banks.
To obtain ad d ed sa fety and protection in
m aking se e d com lo a n s . . . to permit
granting of larger lin es of credit to worthy
borrowers . . . su g g est to producers that
they m ake u se of St. Paul Field W are­
h ou sin g Service.
For St. Paul Field W areh ou se Receipts,
issu ed ag a in st se e d corn inventories, no
matter w here stored, are prime collateral
for Bank loan s.
W ithout cost or obligation, GET TH E
FACTS from our nearest office about
Field W arehousing Service covering seed
corn and other inventories such as so y
b ean s; field seed s; frozen, pow dered or
sh ell eg g s; w h o le sa le groceries; co a l and
lumber; and m anufactured good s. Your
inquiry w ill receiv e im m ediate and cour­
teous attention.

W e ll Be Seeins You at the
Iowa Bankers* Convention. . .
T. S ta n le y J a ck so n , m a n a g e r of our F ield W a r e h o u s e d iv i­
sio n , a n d T. C. C a n n o n , I o w a d istrict m a n a g e r , w ill b e r e g ­
ister ed at H otel Fort D es M o in es for the I o w a B a n k ers
C o n v e n tio n , S ep tem b er 5th a n d 6th. Drop in to s e e them .
T h ey 'll w e lc o m e a n o p p o r tu n ity to ta lk w ith y o u a b o u t s a f e ­
g u a r d in g lo a n s . . . in c r e a s in g profits in y o u r B a n k in g
o p e r a tio n s.

— Iow a Office —
510 Iow a-D es M oines National Bank Building
DES MOINES
T. C. CANNON, DISTRICT MANAGER
TELEPHONE 4-2353

— Other Offices —
NEW YORK

CHICAGO
MILWAUKEE
DETROIT
ATLANTA
PHILADELPHIA
PITTSBURGH
MEMPHIS
SYRACUSE
ALBANY, GA.
CHARLOTTE

S t . P a u l T e r m in a l W a r e h o u s e C o.
ST. PAUL, MINN.

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Federal Reserve Bank of St. Louis

N orthw estern B anker Septem ber 19b3

32
does not appear that the identical q ues­
tion sou gh t to be concluded w as n eces­
sarily tried and d eterm ined in such
prior litigation . H ere there w ere tw o
different q u e s t i o n s in volved and
L ig h t’s failu re to recover in the first
suit w ill not bar h is recovery in the
second.

obligation to m ake any furth er con tri­
bution to th e support and m aintenance
of his w ife is illegal and void as
against public policy.

Carleton, a Chicago, Illinois, business
m an, m arried. A fter living w ith his
wife for a w hile, tro u b le developed b e­
tw een th em and he and she decided
th ey should no longer live together.
As an incident to th e ir p artin g , Carleton and his w ife en tered into an agree­
m en t p u rp o rtin g to relieve him from
any obligation to su p p o rt her. W as
such agreem en t valid?

The directors of an In d ian a savings
and loan association falsely re p re ­
sented to the banking d ep artm en t of
th a t state th a t th ey had paid into and
co n tributed to th e association ten th o u ­
sand dollars to m ake good an im pair­
m en t of capital. In reliance on such
re p resen tatio n s th e banking d e p a rt­
m en t perm itted th e association to con­
tin u e in business and receive deposits.
S ubsequently, w hen the falsity of the
re p resen tatio n s came to light, th e as­
sociation sued the directors for th e
am ount nam ed. Could it recover?

No. An agreem en t b etw een a h u s­
band and his w ife w hereby th e h u s­
band is released from all liab ility and

Yes. The directors of a sa v in g s and
loan association are liable in an action
by the association for the am ount

w hich th ey fa lsely represented to the
banking departm ent th ey had contrib­
uted and paid into the association in
order to m ake good an im pairm ent of
capital, in relian ce upon w hich repre­
sentation the d epartm ent perm itted
the association to continue in b usin ess
and receive deposits.

Schom m er, a W isconsin banker, w as
one of th e directors of a hospital in the
com m unity in w hich he lived. The
hospital sought to have itself treated
as exem pt from tax atio n on the ground
th a t it w as a benevolent institution.
It so happened th a t it w as incorpo­
rated as such an in stitution. Did such
fact, standing alone, re su lt in th e hos­
p ital being placed in th e ta x statu s in
w hich it w an ted to be placed?
No. The fact that the articles of in ­
corporation of a h ospital say that the
in stitu tio n is a b en ev o len t and chari­
table one is n ot con trolling as to its
character in th a t resp ect w ith in tax
exem ption provisions. The b en ev o ­
len t character of a h ospital w ith in tax
exem ption p rovision s of a statu te is
indicated by the fact th at it receives
and depends on donations; that it takes
all p atients w h o apply regardless of
th eir ab ility to pay, or at lea st a fair
num ber of ch arity patients; or that the
m em bers of the corporation render
serv ices w ith ou t com pensation. N eith er
of th ese tests is con clu sive, how ever,
and the facts of each case m ust be
regarded as a w hole, and the substance
of the schem e of operation m ust he
duly exam ined.

"Cedar County Makes Good
Record"
“ A c co rd in g to th e sales re p o rt on th e
Second W a r L o a n D riv e in A p ril, as p r e ­
p a re d b y th e U n ite d S ta te s T re a s u ry W ar
F in a n c e C om m ittee, fo r th e S e v e n th F e d ­
e ra l R e se rv e D is tric t, C ed ar c o u n ty m ade
m ore in d iv id u a l sales th a n a n y o th e r coun­
t y in th e s ta te , e x c e p tin g P o lk , L in n an d
S c o tt.
" C e d a r county h a s a p o p u latio n o f only
16,500, less th a n h a lf o f m an y counties,
b u t h a d th e ir sales o rg a n iz a tio n w o rk
th ro u g h th e le a d e rs h ip of th e b a n k s. A
p e rso n a l b o n d re c o rd c a rd is k e p t on e v ery


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Federal Reserve Bank of St. Louis

33

C o n t in e n t a l I llin o is
N a tio n al B a n k
of

and

T r u st C om pany

C h ica g o

C O M M E R C IA L B A N K IN G
CO RPO RA TE A N D PERSONAL
T R U S T S E R V IC E S
F O R E I G N B A N K I N G F A C I L IT IE S
U N I T E D STA T E S G O V E R N M E N T
A N D M U N IC IP A L S E C U R IT IE S
Member Federal Deposit Insurance Corporation


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

Northwestern Banker Septem ber 19't3

34
p e rso n s to w in g th e q u o ta a n d p u rc h a se fo r
each d riv e .”
J . W . E d g e , P resid en t, T ipton State B a n k, T ip to n ,

Iowa.

"Combatting Rising Prices
Very important"
“ I

in fo rm ed th a t th e
is am ong those
w h ic h p a tr io tic a lly a re c o n trib u tin g one
fu ll p a g e o f a d v e rtis in g m o n th ly fo r th e
n e x t tw e lv e m o nths, to c a rry th e econom ic
s ta b iliz a tio n m essage to th e A m e ric a n p e o ­
ple.
“ A s y o u know , th e re is p ro b a b ly no m ore
im p o rta n t p ro b lem to d a y t h a n t h a t of
c o m b a ttin g risin g p rice s. I t is im p o rta n t,
N

have ju s t been

o rth w estern

B

anker,

n o t o nly in r e la tio n to th e w a r effort, b u t
also because it is essential to hold down
prices if we are to have th e k ind of sound
stable postw ar A m erica w hich we desire fo r
ourselves, our fam ilies a n d our fig h tin g m en
wdien th e y re tu rn . T he g en ero u s c o n tri­
b u tio n o f a d v e rtis in g space to c a rry th e
econom ic s ta b iliz a tio n m essage w h ic h you
a n d y o u r fe llo w p u b lis h e rs h a v e m ade,
th e re fo re , is o f g r e a te s t im p o rta n c e to th e
w a r effo rt. ’ ’
P at.m e r H o y t , D irector, D o­
m estic O perations, Office o f
W ar In fo rm a tio n , W a sh in g ­
ton, D. C.

"Favors Country Banker for Federal
Reserve Board"
‘ ‘ O ur re c e n t re q u e st to th e P re s id e n t to

a p p o in t a n in d e p e n d e n t c o u n try b a n k e r as
a m em b er o f th e b o a rd of g o v e rn o rs o f th e
F e d e ra l R e se rv e S y ste m h a s logic a t le a s t
to su p p o rt it.
“ A t th e p re s e n t tim e th e re is a v a c a n c y
a n d su re ly th e c o u n try b a n k elem en t should
be re p re se n te d . T he b o a rd of gov ern o rs,
to be e ffectu al, sho u ld be a w ell ro u n d e d
o rg a n iz a tio n a n d c o u n try b a n k in g should
h a v e a voice in its d e lib e ra tio n s .
‘ ‘ T he F e d e ra l R eserv e S ystem , th ro u g h
v a rio u s in d u c e m e n ts, h a s tr ie d to e xpend
its m em b ersh ip . I f th e sm a lle r b a n k s of
th e c o u n try f e lt t h a t th e y h a d a re p re s e n t­
a tiv e a t c o u rt th e y m ig h t be m ore f a v o r ­
a b le to m em b ersh ip .
“ M a rrin e r E ccles, an a d v o c a te o f tra d e a re a b ra n c h b a n k in g , should be m e t in th e
b o a rd m e e tin g s b y a n a p o stle o f in d e p e n d ­
e n t b a n k in g . I f in d e p e n d e n t b a n k in g is
to c o n tin u e i t m u st be v o c al in its com ­
m an d fo r f a i r r e p re s e n ta tio n on th e b o a rd s
o f p o lic y m a k in g b a n k e r s ’ o rg a n iz a tio n s .”
B e n D u B o is , Secretary, The
In d e p e n d e n t B a n ke rs A sso ­
ciation, S a u k Centre, M in n e ­
sota.

What Do You Think?
“ W e are w ondering how m any banks are
m ak in g a flat charge fo r d ra w in g c h attel
m o rtg ag es a n d filing fees in fav o r of th e ir
bank. A considerable tim e is ta k e n in p re ­
p a rin g a p ro p e rty sta te m e n t an d chattel.
Our b a n k m akes a flat service charge of one
dollar to cover draw in g th e c h a tte l m ortgage,
filin g a n d re le a s in g c h arg e s. W ith a little
ex planation, our custom ers consider th is a
nom inal charge an d a leg itim a te one. ’ ’
E . N . C h r is t ia n s o n , Cash­
ier, F arm ers S a v in g s B a n k,
Gar win, Iow a.

"Jesse Jones Drew No
Political Lines"
Production Lines are Battle Lines

WAR-TIME B A N K IN G SERVICE
— adapted to the requirements
o f Correspondent Banks
in serving a Nation at war

Ba n k er s T

ru st

N EW

Com pany

YO RK

M em b er o f th e F ederal D e p o s it In su ran ce C o rp o ra tio n

Northwestern Banker Septem ber 19^3


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

‘ ‘ I re ad w ith a g re a t deal of in te re s t in
the A u g u st N o r t h w e s t e r n B a n k e r your
a rtic le ‘A cross th e D esk fro m th e P u b ­
lish er. ’
“ I re g re t t h a t th e s e s e n tim e n ts could
n o t h a v e b e en p la c e d w ith in th e re a c h of
th e g e n e ra l re a d in g p u b lic in s te a d of b e ­
in g lim ite d la rg e ly to y o u r c o n stitu e n ts .
I n m y op in io n th e s u b je c t m a tte r e m a n a t­
in g ‘ A cross Y o u r D e s k ’ d ese rv e s m ore p u b ­
lic ity .
‘ ‘ I w a s p a r tic u la r ly in te re s te d in y o u r
m essage to Je ss e Jo n e s b eca u se o f h a v in g
b e en a sso c ia te d w ith him in som e o f h is
w o rk in W a s h in g to n a n d I fe e l t h a t he d e ­
se rv es th e confidence o f th e A m e ric an p eo ­
ple.
‘ ‘ I feel inclined to w rite him an d send
him a c lip p in g of th e ite m t h a t re la te s to
him self. I t is possible th a t a copy of the
N o r t h w e s t e r n B a n k e r , w as sent him b u t I
am a ssu m in g t h a t you w ill m ak e no ob­
je c tio n to m y se n d in g him th e a rtic le .
‘ ‘ M y p o litic s a re w ell k n o w n as I w as
a b o u t th e only one in th e la rg e R F C liq u i­
d a tin g office w ho cam e fro m n o rth o f th e
‘ M ason-D ixon ’ line, b u t w h e n i t cam e to
th e r e te n tio n o f em ployes, J e ss e Jo n e s
d rew no p o litic a l lines.
‘ ‘ I m ig h t m en tio n in p a ssin g t h a t Leo
S tev en s h a s b e en in a h o s p ita l fo r r a th e r
a serious o p e ra tio n . I do n o t kn o w th e

35

Service to the Nation . . .
-fa O U R N E W , CO M M O DIO U S Q U A R T E R S to a cco m m o d a te th e m a n y th o u sa n d s o f
in d iv id u a ls and co rp o ra tio n s b u y in g W AR B O N D S . . . C on ven ien tly lo ca te d o n the
m ain b a n k in g flo o r and p e r so n n e lle d by train ed b an k tellers.
T h e B an k p rovid es th is fr e e service to p u rch asers o f W AR B O N D S an d w ith ou t c o m ­
p e n sa tio n fro m the G overnm ent . . . O ne o f th e m an y parts B a n k s tak e in th e war
effort and to aid in r ed u c in g th e risk s and d isaster o f in fla tio n .

U N IT E D
S T A T E S
fh itlo n a f D .A Ä T K of(P m aA a
m e m b e r


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Federal Reserve Bank of St. Louis

f d i c

Northwestern Banker Septem ber 19b3

90 CROWDED YEARS
From the days of the horse car

N E W S A N D V IE W S O F TH E
B A N K IN G W O R L D
(C ontinued from page 24)

• ■■hack in 1 8 5 3 ...to these critical days of glohegirdling

n a tu re o f it a n d only kn o w of his c o n d i­
tio n b y phone.
“ W ith k in d re g a rd s to y o u rse lf a n d
H e n ry , I re m a in . ’ ’
W. O. R e.e ,d , 122 N o rth
Orange Grove A ve., P asa­
dena, C alifornia.

First

Wisconsin National B a iii has served Milwaukee
and Wisconsin for 90 crowded years!
T oday this 90-year-old bank is the largest in the
state and 26th in size am ong the 15,000 banks
h roughout the country . . . long outstanding
as M ilw aukee depository fo r m ore than 85 per
cent o f all the hundreds o f banks in W isconsin
A nd today all the services and facilities o f this
bank are pledged to one e n d : T o h elp speed
the victory o f Freedom ’s forces'

banks and bankers

DI VI SI ON

w ater Beach H otel in Chicago said,
“The m en and w om en of th e F. A. A.,
rep resen tin g th e prom otion side of
banking, are essentially ‘idea’ people.
No one person has a m onopoly on
ideas. In th e cooperative sp irit in
w hich our A ssociation has functioned
for 28 years, our A nnual M eeting has
alw ays been th e g reat m edium for the
interchange of ideas in a personal
w ay.”
We believe th is also holds tru e for
o th er b a n k e rs’ conventions w hich are
so im p o rtan t at th is tim e.
To th in k th a t congressm en after 10
y ears of boon doggling and govern­
m ent com petition should be again
th in k in g of prom oting private en ter­
prise is indeed in terestin g and h e a rt­
ening.
In a recent poll of congress m ade
by the New Y ork H erald-T ribune the
c o u n try ’s postw ar p r o b l e m s w ere
listed in th e follow ing order of im por­
tance. 1. Safeguarding private enter­
prise; 2. em ploym ent; 3. decentraliza­
tion of g o v e r n m e n t ; 4. agriculture;
5. education; 6. taxation; 7. social se­
curity; 8. in du strial relations.

GEORGE T. CAMPBELL
Vice-President
RICHARD J. LAWLESS
Assistant Vice-President
DONALD A. HARPER
Assistant Vice-President

FIRST WISCONSIN
NATIONAL BANK
Established 1853

oi MILWAUKEE

MEMBER OF THE F E D E R A L

D EP O S IT

Northwestern Banker Septem ber 1943


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Federal Reserve Bank of St. Louis

IN SU R A N C E

COR POR AT ION

E dgar M cBride, p r e s i d e n t of the
Com m ercial B ank of Blue Hill, Ne­
b r a s k a , w rites th e N o r t h w e s t e r n
B a n k e r th a t his in stitu tio n had an
increase of a little over 99 p er cent
in deposits du rin g th e last year, and
th erefo re he feels th a t he is ahead of
th e F a irb u ry S tate Bank, w hose
record is an increase of 96 per cent
and w as referred to in th e A ugust
issue of the N o r t h w e s t e r n B a n k e r .
In his le tte r to us, Mr. M cBride said,
“I note in y o u r A ugust issue of th e
N o r t h w e s t e r n B a n k e r th a t you state
th a t W . A. R ose, p resident of th e
F a irb u ry S tate B ank of F airb u ry , Ne­
braska, holds the record in N ebraska
for increase in deposits from Ju n e
30, 1942, to Ju n e 30, 1943, w ith an in ­
crease of approxm iately 96 p er cent.
“I do not agree w ith th is as I be­
lieve th a t th ere are o thers in th e state
w ith b e tte r records. Take our own
b ank for instance. As you w ill note
on th e enclosed statem en t blo tter on
Ju n e 30, 1942, we had deposits of $502,262.90 and on Ju n e 30, 1943, we had
deposits of $1,000,589.86, an increase
of a little over 90 p er cent.”

Jggf

■; •'

WARTIME BANKING SERVICES
Pointing to the Bank Role of Tomorrow

P a rtic ip a tio n in w in n in g of th e W ar is th e p rim a ry o b jective of th e N a tio n ’s h a n k s ----fo r
th e d u ratio n !
W itness th ese 10 W a rtim e activities —
1.

6.

W AR B O N D SA LES—

2.

U . S. G O V ERNM ENT SE C U R IT IE S
P U R C H A SE S—
7.

A ssets o f b a n k s h a v e la r g e ly b e e n c o n ­
v e r te d in to U . S. G o v e rn m e n t s e c u ritie s .

3.

R A T IO N B A N K IN G ACCO UNTS—
8.

T R U ST SE R V IC E S—
M a n y e s ta te s of m e n w h o h a v e e n te re d
th e A rm e d F o rc e s a re b e in g h a n d le d hy
T ru s t D e p a r tm e n ts o f b a n k s . L ik e w ise
e s ta te s a n d investm ents? o f m e n b u s y in
W a r in d u s tr ie s a re b e in g m a n a g e d hy
b a n k t r u s t m en .

CH ECK ING ACCO UNT SER V IC E—
B a n k a d v e r tis in g h a s s p re a d th e u se of
b a n k c h e c k s fo r p a y m e n t o f h ills — sav in g
la rg e to ta ls o f tim e , tire s a n d g aso lin e .
E n c o u ra g e m e n t o f b a n k in g h y m a il h as
r e n d e r e d a s im ila r p u b lic se rv ice.

5.

P ER SO N A L LO ANS—
E m p lo y e e m o r a le h a s b e e n h e lp e d m a n y
tim e s b y p e r s o n a l lo a n s n e e d e d to tid e
o v e r e m e rg e n c y situ a tio n s .

W e ll-o ile d b a n k in g m a c h in e r y of A m e r­
ic a ’s 15,000 c o m m e rc ia l h a n k s h a s b e e n
u tiliz e d to h e lp m a k e th e R a tio n B a n k ­
in g sy stem o p e ra te .

4.

T H R IF T STIM U LA TIO N —
B o th W a r B o n d a n d sa v in g s a c c o u n t
t h r if t h a s b e e n a c c e le ra te d h y h a n k e f­
fo rts . B u ild in g o f th e s e re se rv e s h e lp s
a v e rt d a n g e ro u s in fla tio n a n d m a k e fu n d s
a v a ila b le f o r fa m ily e m e rg e n c ie s .

B a n k s h a v e h a n d le d 85% o f W a r B o n d s
p u r c h a s e d h y th e p u b lic .

9.

COM MERCIAL LO ANS—
W o rk in g c a p ita l n e e d e d h y b u sin e sse s
a sso c ia te d w ith th e W a r p r o g ra m is b e ­
in g s u p p lie d g e n e ro u s ly b y th e b a n k in g
system .

1 0 . SAFE D E P O S IT —

CASH ING PAYR O LL CH ECK S—

T o give p e a c e
b u s ily e n g a g e d
c a p a c itie s , sa fe
a re le n d in g a n

L a rg e a n d n u m e r o u s W a r tim e p a y ro ll
c h e c k s h a v e b e e n c a s h e d b y h a n k s in a ll
W a r p r o d u c tio n lo c a litie s .

o f m in d to in d iv id u a ls
in th e W a r e ffo rt in m a n y
d e p o s it fa c ilitie s o f h a n k s
im p o r ta n t p ro te c tio n .

A s th e n e t r e s u lt o f th e s e s tro n g c o n tr ib u tio n s th a t A m e r ic a ’s h a n k s a re m a k in g to th e p u b lic w e lfa re to d a y ,
th e im p o r ta n t f u tu re of th e r o le of b a n k in g in o u r w a y o f liv in g is c le a r.
Is y o u r h a n k ta k in g its p la c e , in th e n e w im p o rta n c e o f th e b a n k in y o u r c o m m u n ity ?
L o o k a h e a d w ith th e F in a n c ia l A d v e r tis e r s A sso c ia tio n . J o in n o w a n d get a ll th e a d v a n ta g e s o f th e b e s t th in k in g
a n d id e a s o f m e n f o re m o s t in th e field of fin a n c ia l a d v e r tis in g .

T in a n c ia l A d v e r t is e r s A s s o c i a t io n
P resto n E . R eed , E x e c u tiv e V ic e P r e s id e n t, 2 3 1 S. La S a lle S t., C h icago, Illin o is

•
A n o n -p r o fit o rg a n iza tio n

fo r th e b e tterm en t o f ad v ertisin g . . .
m eth od s . . . p u b lic rela tio n s.

p u b licity

. . .

n ew b u sin ess

Northwestern Banker Septem ber 19't3

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

W rite us about y o u r b an k —we w an t
to publish all th e increase records
about b ank deposits you send us.
Ed F. B uckley, p resid en t of th e Cen­
tra l N ational B ank and T ru st Com­
pany of Des Moines, and his fellow
officers at th e b an k are sending M uriel
L aw son, 19-year-old independent S han­
gri-La queen co n testan t to th e lau n ch ­
ing of th e a irc ra ft carrier. The date
and th e place of launching are still a
m ilitary secret.
Miss L aw son en tered th e Des Moines
contest, u sing $300 of h e r own m oney
to pu rchase stam ps as w ork in g capi­
tal and she sold $130,000 in stam ps
before th e contest ended, and although

she ran ked fo u rth place and w as th e re ­
fore not eligible to atten d th e lau n ch ­
ing, Mr. B uckley said, “It is our
sincere belief th a t the very o u tstan d ­
ing show ing m ade by Miss Lawson,
en tirely th ro u g h h e r own energy, am ­
bition, and aggressiveness should be
rew ard ed ”.
The best definition we have read of
inflation is by a co untry b an k er who
says “Inflation co n sists of h a v in g to
pay more for less”.
In these days of new secretaries
and changing help, one of our b an k er
friends sent th is to th e N o r t h w e s t e r n
B anker:

A .G ood Company with

“You heard of the secretary w ho
could not distinguish betw een ‘depot,’
‘deposit’, and ‘despot’.
“W h at of m y (?) su b stitu te who
asked how to spell ‘sense’? I asked
w h at kind: ‘D ollars and cen ts’ or ‘horse
sense’? She replied, ‘No, the one used
w hen I say “I h av en ’t seen him sense
y esterd ay .’ ”
L ieu ten an t (j.g.) L. D ale C unning­
ham, w ho for 16 y ears w as associated
w ith B allard-H assett Com pany of Des
Moines, w as in active d uty in N orth
A frica d u ring th a t invasion period and
is now assigned to d uty on a N or­
w egian freighter. Lt. C unningham re ­
ceived his com m ission on N ovem ber
22nd, 1942.
Ed M. W arner, presid en t of the City
N ational B ank of Clinton, sent us some
very i n t e r e s t i n g verses, “T unisian
Sands” w ritte n by Corporal E rn est G.
N issen w hose father, J. H. N issen, is
cashier of th e City N ational B ank of
Clinton.

A few of the stanzas are as follows:

which to Insure

“T here’s blood on th e sand of T unisia,
It’s the blood of the brave and the
true,
W here three nation s battled together
U nder banners of red, w h ite and blue.

A G ood Company
to Represent

T otal In su ra n c e in F o rc e _____________________$675,055,826

“A s th ey m arched o’er the sands of the
desert
To the h ills w here the en em y lay
T hey rem em bered the gen eral’s or­
ders:
‘The pass m ust be taken today.’
“Forw ard th ey w en t into battle
W ith faces u n sm ilin g and stern,
T hey k n ew as th ey charged up the
h illside
That som e w ould n ev er return.”

T o tal D ividends an d Savings Since O rg a n izatio n ______ $18,004,696

Transferred to Seattle

M IL L

O W N ERS

M UTUAL

FIRE IN SU RA N CE C O M P A N Y o f IO W A
O F F IC E R S
H. B. Carson.......................P resident
C. M. Reed................ Vice P resident
L. K. S harp ...................... Secretary
J ohn W ise ......................... Treasurer

Des M oines, Iow a

Northwestern Banker September 19'i3


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

J. E. Robb........A ssista n t Secretary
L. McK ibban ....A ssista n t S ecretary
Clarence Letz___ A sst. T reasurer
I. E. S ams ....Mgr. Canadian Dept.

H a m ilto n , O n tario

D avid E. Simms, im m ediate past
p resid en t of th e A m erican In stitu te of
B anking, w ho form erly w as assistan t
m anager of th e Salt Lake City branch
of th e F ederal R eserve B ank of San
Francisco, has been tra n sfe rre d from
th a t b ranch to th e Seattle, W ashing­
ton, b ran ch of th e bank. He w ill serve
in th e Seattle b ran ch as a ssistan t m an­
ager.
Mr. Simms has a long record of serv­
ice to the A.I.B. He has served as a
m em bers of its executive council and
w as elected p resid en t in 1942. He is
now ex-officio a m em ber of the execu­
tive council, and is chairm an of its
budget com m ittee.

See the People

T. F . G reen a t his desk in h is agency.

Nebraska Loca! A gent Says This Is the First Principle of
Selling Insurance
USTOM ERS m ay come and go,
prospects m ay be scarce or p len­
tiful, types of coverage can and
do change, b u t th e re is one fu n d am en ­
tal of in su ran ce th a t is alw ays th e sam e
—th e only w ay to sell it is to see th e
people. T his is th e conclusion of T.
F. Green, successful local ag en t in
Valley, N ebraska.
Mr. G reen, an officer in th e local
bank, has been a local agent in V alley
and su rro u n d in g com m unity for a long
tim e. He opened his agency in 1905,
w hen th e re w e re n ’t any paved streets,
or an y Lincoln H ighw ay, n o r any g ra v ­
el roads over w hich he could tra v e l to
call on his prospects. He has tw o
25-year certificates show ing continuous
rep re se n ta tio n of th e sam e com pany
for th a t period — one from H anover
F ire issue in 1935, and one m ore re ­
cently from th e St. P au l F ire & Ma­
rine. Both these com panies are still
in th e agency.
In cluding hail coverage, Mr. G reen
says th a t about half of his prem ium
incom e is derived from farm u n d e r­
w riting, and farm business th is y ear
is good. H ail coverage, th ro u g h Ne­
braska, at least, w as sold th is sp rin g in
m uch la rg e r volum e th a n usual, and
coverage on all typ es of farm in su r­
ance w as easier to place. T here is, of
course, a reason. F arm e rs last year
had b e tte r th a n average crops, w hich
sold at a good price, brin g in g m ore

C


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

A n In te rv ie w w ith

T. F. Green
Cashier, Bank of Valley
Valley, Nebraska

m oney into farm ers’ pockets. P ros­
pects for crops early th is y ear w ere
n ever b etter, although th e season w as
late in m any localities. So farm ers
b o ught hail coverage because th ey had
p len ty of m oney and good crop pros­
pects—a com bination th a t m akes good
business for the insurance agent. And
th e tre n d n atu ra lly leads into farm
business of all kinds.
H is fire insurance business is w rit­
ten on a th ree or five y ear basis, Mr.
G reen says, and as these policies come
up for renew al he is tak in g increased
values and difficulty of replacem ent in ­
to consideration, and w ritin g th e busi­
ness w ith hig h er lim its. Of course,
w hen values go up th ey can also come
down, and it is a w ise agent w ho
w eighs carefully all the angles. Mr.
G reen feels, how ever, th a t th e dem and
for all farm products w ill continue
u n u su ally strong for th e n ex t several
years, so th a t h igher values are ju s ti­
fied and p erhaps necessary at the p res­
en t tim e.
W hile agents in th e larg er tow ns and
cities w ere w atching th e ir autom obile

prem ium s do a nose dive, ru ra l com­
m unities, at least for the past several
m onths, have not been subject to so
m uch change. Mr. Green rep o rts his
auto prem ium s as holding up very
well, his only w orry being th a t th ere
seem s to be a grow ing tendency for car
ow ners to place th e ir coverage in sub­
stan d ard com panies. H ere again the
ru ra l agent is favored, because farm ers
have had little or no restrictio n applied
to th e use of th e ir cars and, as noted
above, have plenty of m oney to pay
the prem ium .
H is duties as a bank officer do not
alw ays m ake it possible for Mr. Green
to see his insurance custom ers and
prospects ju st w hen he w ould like to,
b u t he has m ade it a ru le to try to
contact his custom ers before renew ing
th e ir policies, and in th e v ery few cases
w here it is im possible to see them be­
fore expiration, he puts th e policy
th ro u g h and has it on hand to deliver
th e n ex t tim e the custom er comes into
th e bank. It is obvious to every local
agent, especially in changing tim es like
these, th a t unless you consult w ith
y o u r custom er about changes w hich
m ay be necessary in his renew al pol­
icy, you are not giving him the serwice
to w hich he is entitled, to say nothing
of m ore com m issions from an increase
in th e coverage or the addition of new
lines.
Of course, to obtain new business,
Northwestern Banker Septem ber 1949

40
Mr. G reen says, th e ag en t m u st solicit
it. W hile he know s alm ost everyone
in his com m unity, rig h t now th e re are
new fam ilies m oving into Valley, p ro ­
viding th e y can find a place to live.
If his tim e perm its, Mr. G reen calls on
them a t th e ir hom e or place of busi­
ness. O therw ise th ese new com ers visit
the b ank sooner or later, and ev en tu al­
ly are contacted for insurance.
In operatin g th e local agency in the
bank, th e b an k sh ares a p re a rra n g ed
portion of th e profits from th e in s u r­
ance business, th e balance of th e profit
going to Mr. G reen and his associates
w ho do th e actual w ork. T here is agi­
tatio n from tim e to tim e in some states

to th ro w a certain am ount of re stric ­
tio n around so-called b ank agencies,
b u t in th e case of a com paratively
sm all com m unity, such as Valley, N e­
braska, a serious situ atio n w ould exist
if these hu n d red s of persons had no
source of insurance supply. Mr. G reen
tak es care of them insurance-w ise, and
in a m ost efficient m anner.

Fire G u ard s
Civilian defense officials have re ­
peatedly w arned th a t as th e prospect
of m ilitary defeat becomes increasing­
ly a p p aren t to G erm an and Japanese
leaders, th e danger of air attack s on

CASH FOR SICKNESS,
HOSPITALIZATION
OR ACCIDENT
Full Cover Policies for Bankers at about half
the cost of ordinary insurance.
Reliable protection in a Com pany with thirtyseven years successful experience.
"A-plus" rating in D unne's Insurance Reports
for financial standing a n d "Excellent" for claim ­
pay in g record.
Small m em bership fee pays for Accident an d
H ealth Policies in full to the m iddle of next
December. W rite for applications an d inform a­
tion.

M IN N E S O T A

C O M M E R C IA L

M E N 'S A S S O C I A T I O N

th is co u n try grow greater. F ire bombs
w ill play a m ajor p a rt if such attacks
occur.
As the Office of Civilian Defense
points out: “W ar has aggravated the
fire hazards in every A m erican com­
m unity.
O rdinary day-to-day fires
th re a te n our lives and w ar production.
Beyond th at, the new enem y high ex­
plosive fire bom bs carry w ith them the
th re a t of disastrous conflagrations u n ­
less tra in e d v o lu nteers are ready to
stop sm all fires before th ey can en­
danger large areas. In p resen t day
bom bings of cities and v ital w ar cen­
ters, fire bom bs com prise m ore th a n
half the ‘pay load’. A city m ay have
to face m ore th a n a thousand fires set
sim ultaneously—a task far beyond th e
capacity of reg u lar fire-fighting forces.”
The OCD is m obilizing a fire guard
of selected civilians not only to com­
b at fire caused by enem y action, b u t
to com bat fire losses bro u g h t about by
our own carelessness. The re su lt of
OCD efforts should be to m ake th e
nation increasingly aw are of th e fire
m enace. If it succeeds, it m ay well
ren d er a service of far g reater value
th an the potential dam age th re a te n in g
th e co u n try from enem y bom bers.

A head in ! 943
Jam es H. Copeland, general agent in
D avenport, Iowa, for th e N o rth w est­
ern M utual Life In su ran ce Company,
announces th a t his agency for th e first
seven m onths of th is y ear is 15 p er
cent ahead of th e like period in 1942.
Prospects now are for business to con­
tin u e good for th is fall and w inter,
w ith perh ap s an increase in w ritings
over th e first half of th e year, Mr.
Copeland says. A t th e p resen t tim e
th e best prospects seem to lie am ong
farm ers and stu d en ts of from 10 to 18
y ears of age.
The N o rth w estern M utual Life has
had b u t tw o general agents in D aven­
p ort du rin g th e p ast fifty years, of
w hich Mr. Copeland is one. He has
been w ith th e Com pany in D avenport
for th e p ast 13 years, and recently re ­
ceived his 30-year button, show ing
continuous rep resen tatio n of N o rth ­
w estern M utual for th a t tim e.
L ast y e a r the N o rth w estern Mu­
tual Life w rote $8,036,965 of new busi­
ness in Iowa, closing th e y ear w ith
$151,529,000 in force in th e H aw keye
State. At th e close of 1942 th e Com­
p any had total in force of $4,128,442,987.

PAUL CLEMENT, Secretary
2550 Pillsbury A v en u e
MINNEAPOLIS 4, MINNESOTA

Northwestern Banker Septem ber 19k3

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

Patriotic Menu
J u st cut yourself sh o rt on sugar,
A nd be saving of fats and grease;
T hen w e’ll sw eeten our coffee w ith
freedom ,
A nd b u tte r our bread w ith peace.

41

At Home
In Any Banking Circle
For thirty-six y e a r s the W estern M utual F ire Insurance
C om pany h a s ch osen to stand by the sam e sound prin­
cip les that influenced one hundred and fifty bankers in
Iowa alone to ch oose to rep resen t u s in their com m u­
n ities th is year.
E sta b lish ed for the purpose of m utual protection in
the in terest of the public w elfare, we are prepared to
offer com plete in su ran ce protection to your clien ts. W e
w ill be happy to se r v e you.

W ESTERN MUTUAL
F I RE I N S U R A N C E CO.
Des Moines, Iow a

ii

Over a T hird of a Century of Safety and Service with Savings
Northwestern Banker Septem ber 1943


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

42

Little Chores
Cause Big Claim s

W hen asked about Life
\
m
I n s u r a n c e c o m p a n ie s ,
T*
Jm y
Bankers u s u a l ly recomm end C entral Life without
reservation as a strong, reliable Com pany pro­
viding low-cost protection for policyholders.
We hav e learn ed of num erous instances w here
Bankers have seen fit to m ake such recom m enda­
tion. W e w ant you to know we appreciate your
confidence a n d your friendly cooperation.
AMONG IN SU RA N CE C O M P A N IES, C EN TR A L L IF E
IS REC O G N IZED EV ER Y W H ER E AS

TOTAL ADMITTED ASSETS..................................$ 58.314.820
SURPLUS IN EXCESS OF......................................$ 5.700.000
INSURANCE IN FORCE.......................................... $178,871,001
FOR EVERY DOLLAR OF LIABILITY WE HAVE ASSETS OF $1.11

NOW

IN O U R 4 8 t h Y E A R

C e n t r a l

L ife

ASSURANCE SOCIETY
(MUTUAL)
E. H. M ulock, President

D es M oines, Iow a

H ouseholders w ho are doing the
w ork of B ridget, w ho’s gone into w ar
w ork, and of Joe, w ho used to do odd
jobs around the place, are discovering
this sum m er th a t th ere is quite a bit
of skill req u ired in dom estic chores.
R esults of the am ateu rish labor are
show ing up in accident claim files,
according to The T ravelers Insu ran ce
Com pany of H artford, Connecticut.
F o r exam ple, one policyholder, u n ­
able to find an electrician to do the
job, w as up in his attic installing a
v en tilatin g fan. He had cut a hole
th ro u g h th e side of th e house for the
fan to fit in and w as w restlin g w ith
th e device in an effort to get it in place
w hen, som ehow or other, he slipped—
and he, not th e fan, w en t th ro u g h the
hole. The com pany paid him alm ost
a thousand dollars for in ju ries he
sustained in his fall.
A nother policyholder, w ho happens
to be a law yer, w as w ashing w indow s
w ith a garden hose (housew ives m ain ­
tain th a t’s a lazy m a n ’s w ay of doing
th e job). He slipped and fell. A fter
some days in a hospital, his shoulder
w as back in shape again.
A m aid in th e household of an o th er
policyholder left to take a w ar job.
The lady of th e house w as h u rry in g
to answ er th e doorbell one day w hen
she fell over a cocktail table and
stru ck h e r head on th e piano bench.
More th an five h u n d red dollars w ere
paid her.
A business executive lost his balance
and fell w hile rep airin g the roof on his
garage. Two ribs and his left arm
w ere the w orse for his tum ble.
The old saw, “The bigger th ey come,
th e h a rd e r th ey fall,” m ight be applied
to th e plight of an o th er business
executive ( p r e s i d e n t a n d general
m anager of a corporation), w ho w as
standing on a stepladder sw eeping
cobwebs from th e ceiling. The stepladder slipped. He fell and sustained
fractu red bones in both feet. He cost
his insurance com pany nearly tw o
th o u san d dollars.

Height of Something
GENERAL AGENTS IN IOW A
Cedar Rapids
W. D. MOORE
Clarinda
GEORGE L. MACE
Davenport
LELAND T. SLOANE
Des M oines
FRED H. BROWN
Dubuque
E. L. GIFFORD
Ft. D odge
HUGH ZIEGLER

Northwestern Banker Septem ber 1943

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

M arshalltown
H. W . MARSHALL
M ason City
y JAK£ DOUGLAS
Sioux CitY
WRIGHT
DALE L- ZAPP
Spencer
DON B. LOHNER
W aterloo
MACK FISH

Jim : “Lem m e tak e your pen.”
Stim: “Sure.”
Jim : “Got some pap er?”
Stim: “H ere.”
Jim : “Going p ast th e m ail box?”
Stim: “Sure.”
Jim : “W ait till I finish th is letter,
w ill you?”
Stim : “Sure.”
Jim : “Got a stam p?”
Stim: “H ere.”
Jim : “T hanks. W h a t’s your g irl’s
address?”

43

Farm Employes Now Covered
N E W pro g ram for th e w ritin g
of em ployers’ liability insurance,
including m edical paym ents, to
cover the em ployes of farm s and ap ­
plying on a nationw ide basis is a n ­
nounced by th e N ational B u reau of
C asualty and S u rety U nd erw riters.
The N ational B ureau also announces
im p o rtan t changes b roadening and
clarifying o w n ers’, lan d lo rd s’ and te n ­
a n ts ’ and pro d u ct liability insu ran ce
for farm s; th e in tro d u ctio n of prem ises
m edical p ay m en ts for farm s, and
broad en in g of th e basic coverage for
o w n ers’, lan d lo rd s’ and te n a n ts ’ and
m a n u fa c tu re rs’ and c o n tra c to rs’ liabil­
ity in su ran ce to include coverage for
any prem ises alienated by th e insured,
including elevators and escalators lo­
cated thereon, in connection w ith
prem ises classifications.

A

Employers' Liability Insurance—
Farms
The ra tin g m ethod and u n d e rw rit­
ing p rocedure for em ployers’ liability
insurance, including m edical p ay ­
m ents, for farm em ployes applies on
th e sam e general basis as for w o rk ­
m e n ’s com pensation insurance, b u t at
reduced ra te s and m inim um p re ­
m ium s. It is available for all farm s,
b u t only in com bination w ith o w n ers’,
lan d lo rd s’ and te n a n ts ’ liability in s u r­
ance.
The rates for th is insu ran ce provide
for th e u sual in d em n ity lim its of $5,000
p e r em ploye and, subject to th a t lim it,
$10,000 p er accident, and in addition
eith e r $250 or $500 m edical p aym ents
insurance. Two classifications are p ro ­
vided, one for all farm em ployes o th er
th a n in serv an ts, clerical office em ­
ployes and salesm en, ra te d on a payroll
basis, and th e o th er for inserv an ts,
ra te d on a p er capita basis. The rates
and m inim um prem iu m s v a ry by state
and m edical lim it afforded. The m in i­
m um prem ium s apply for one y e a r or
less and are n o t subject to sh o rt rate
ad ju stm en t. Policies m ay be w ritte n
for a period of th re e years, b u t at no
discount in rates.
T he in su ran ce applies to in ju ries
su stain ed in th e course of farm w ork,
including tra n sp o rta tio n incident to
such em ploym ent. Coverage is in ­
cluded for stru c tu ra l alteratio n s, new
co n stru ctio n and dem olition operations
perform ed by farm em ployes, a t th e
m anual ra te s and m inim um prem ium s.
The exclusions are sim ple and re ­
duced to a m inim um . Coverage is ex­
cluded for CD liability assum ed by th e
in su red u n d e r any co n tract or agree-

Employers' liability insur­
ance to cover employes of
farms on nationwide basis
is announced. Other pol­
icy changes affect medical
payments with respect to
farms.

m ent, (2) liability u n d er any w o rk ­
m e n ’s com pensation law, and (3) in ­
ju ry to any em ploye w hile engaged in
the operation or m aintenance of a ir­
craft.

Owners', Landlords' and Tenants'
Coverage— Farms
T he coverage u n d er th e farm s classi­
fication relates to th e m aintenance,
ow nership or use of farm prem ises and
all operations necessary or incidental
thereto. T his definition is in terp reted
as including coverage for farm or other
anim als w hile aw ay from th e prem ises
except as otherw ise excluded, and for
th e exhibition at fairs and show s of
farm products and anim als o th er th a n
saddle anim als.
The scope of th e “farm s” classifica­
tion has been broadened to include
coverage for all saddle anim als w hile
aw ay from the insured prem ises ex­
cept w hile ren ted to o thers or used in
practicing or particip atin g in any ex­
hibition or contest. The exception
applies, for exam ple, to the exhibition
at show s of saddle anim als w hich an
in su red m ay raise on his farm , to the
use of such anim als in th e gam e of polo
and to th e use of saddle anim als in any
race. The personal liability classifica­
tion for farm s has been am ended sim ­

ilarly, except th a t in th e exclusion re ­
lating to saddle anim als in th e w ord
“race” has been su b stitu ted for the
w ord “contest.” F o r th e la tte r classi­
fication, coverage is included for a lia­
bility arising out of th e practicing or
playing of polo w hich is not considered
an exhibition.
The exclusion relatin g to anim als lo­
cated aw ay from th e insured prem ises
for feeding purposes has been elim i­
nated. Coverage for such anim als is
contem plated u n d er th e farm s classifi­
cations. An addittional charge applies
for the hazard of grazing of anim als
u n d er grazing agreem ents or perm its
involving land n ot ow ned or leased by
th e insured. T he te rm “acreage” is
defined as land ow ned or leased by the
in su red in connection w ith each farm
and th e rates for acreage contem plate
coverage for grazing on such land.

Product Liability Insurance
A new product liability classification
has been established to cover farm
products. It includes d airy products,
livestock, po u ltry and p o u ltry prod­
ucts, o ther livestock products, field
crops, vegetables, fruits, n u ts and for­
est products. It does not apply to
cream eries, d airy products, if any dairy
products are sold by th e in su red on a
ro ute delivery basis, or to processed
foods w here th e sales of such foods
exceed 10 p er cent of th e to tal sales of
all farm products. T he classification
w as erected in order to m ake product
liability insurance readily available to
th e sm all general purpose farm er a t a
reasonable prem ium .
The rates and m inim um prem ium s
for th is classification are $.10 p er
$1,000 of sales subject to a m inim um
prem ium of $5 for bodily in ju ry in­
surance, and $.03 per $1,000 of sales,
subject to a m inim um prem ium of
$2.50 for p ro p erty dam age insurance.
A reduction has been m ade in the
bodily in ju ry m inim um prem ium for
the classification applying to packers
of fresh fru its and vegetables.

Premises Medical Payments
Coverage

W e ll, w h a t th e “ S am H i l l ” do y o u e x p e c t
for fifty d o lla r a m on th?

Prem ises m edical paym ents covers
th e in su red ’s m oral obligation to pro­
vide medical, n u rsin g or hospital care
or reasonable funeral expenses w hen
death resu lts for a person w ho sus­
tain s bodily in ju ry , sickness or disease,
caused by accident, w hile on his p rem ­
ises. It also provides such care or
fu n eral expenses for a person w ho is
not on th e in su red ’s prem ises b u t is
Northwestern Banker Septem ber Í9b3


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

44
in ju re d by an occurrence on th e in ­
su re d ’s pro p erty , e. g., a lim b of a tree
falling upon a p ed estrian in th e stre e t
or elsew here.
The coverage has been available p re ­
viously on a g eneral basis for p riv ate
ap artm en ts, p riv ate residences and tw o
fam ily dw ellings in com bination w ith
o w n ers’, lan d lo rd s’ and te n a n ts ’ bodily
in ju ry liability insurance for such
prem ises. It has now been extended
to farm risks. The ra te s for farm s are
the sam e as those for residence risk s
and apply regardless of th e size of th e
farm . The coverage for farm s is sim ­
ilar to th a t for residence risk s except

th a t coverage is excluded for any p er­
son w hile engaged in w ork incidental
to th e m aintenance or use of farm
prem ises.
The rules, classifications and rates
for prem ises m edical paym ents cover­
age for residence risk s and farm s have
been incorporated in th e o w ners’, land­
lo rd s’ and te n a n ts’ liability m anual.

Method of Writing Coverage for
Farms
The stan d ard schedule personal lia­
bility policy is w ell suited for th e w rit­
ing of ow ners’, landlords’ and te n a n ts’,
em ployers’ liability, including m edical
paym ents, and prem ises m edical pay­
m en ts insurance for farm s. A ccord­
ingly, an advisory endorsem ent for
use w ith this policy settin g fo rth the
essentials of coverage for farm risks
has been prepared.

Grantors" Protective Liability
Insurance

T h e A rn o ld S y s te m o f c o m p e n s a tio n ,
w h ic h re w a r d s t h e a g e n t p r im a r ily n o t
f o r t h e a m o u n t o f n e w in s u r a n c e h e
se lls, h u t f o r t h e q u a l i t y o f se rv ic e h e
r e n d e r s , h a s sin c e i t s in a u g u r a t i o n in
1939 s u b s t a n t i a l l y b e t t e r e d t h e fin a n ­
c ial o u tlo o k o f e s ta b lis h e d N W N L
a g e n ts a n d t h e i r s t a n d in g in t h e i r r e ­
s p e c tiv e c o m m u n itie s .
I n e x te n d in g t h e p r in c ip le s o f t h e
A rn o ld S y s te m t o new a g e n ts , N W N L
h a s p u t in to a c tio n a w e ll-ro u n d e d
p r o g ra m d e s ig n e d t o r e d u c e t o a m i n i ­
m u m t h e n o r m a l ris k s o f t h e e a rly
“ le a r n in g p e r io d ” o n a n e w j o b . U n d e r
th is p r o g ra m n e w m e n o f a b ility m a y
q u a lif y q u ic k ly f o r H o m e O ffice t r a i n ­
in g a t C o m p a n y e x p e n s e u n d e r e x p e r i­
e n c e d in s t r u c t o r s a n d g o b a c k t o t h e
field w ith a s s u r a n c e o f a d e f in ite m in i­
m u m in c o m e p a id f o r s e rv ic in g b u s i­
n ess a lr e a d y o n t h e b o o k s. T h e r e is
a m p le e v id e n c e t h a t t h i s p r o g r a m —
c o u p le d w ith a C o n tin u o u s T r a in in g
P r o g r a m f o r o ld e r fie ld m e n — is w o rk in g
h a n d - in - h a n d w ith N W L ’s so u n d ly
c o n c e iv e d c o m p e n s a tio n s y s te m to
m a k e a h a p p ie r , m o re p r o s p e r o u s
a g e n c y o r g a n iz a tio n . S c o re s o f e n t h u s i ­
a s tic c o m m e n ts h a v e a lr e a d y b e e n r e ­
c e iv e d f ro m N W N L fie ld m e n te llin g
how th e y h a v e tra n sla te d th e ir H om e
O ffice s t u d y a n d c o n tin u o u s field t r a i n ­
in g i n to s o u n d e r, m o r e e ffe c tiv e w o r k ­
in g h a b i t s le a d in g th e m t o g r e a te r
p ro fits a n d s a tis f a c tio n in t h e i r c a re e r.

The basic coverage for m a n u factu r­
e rs ’ and co n tracto rs’ and o w n ers’, land­
lords’ and te n a n ts’ liability insurance
covering prem ises has been broadened
to include coverage w ith o u t additional
charge for any prem ises alienated by
th e in sured eith er p rio r to th e incep­
tion of the policy or du rin g th e policy
period, including elevators and esca­
lato rs thereon. T his coverage is com­
m only referred to as g ra n to rs’ protec­
tive liability insurance.
Coverage is excluded for alienated
prem ises over w hich th e in su red has
any rig h t of control or w hich w ere con­
stru cted by th e in su red for sale, and
for in ju ry to or d estruction of p rem ­
ises alienated by th e insurance out of
w hich th e accident arises.
The coverage has been available p re ­
viously u n d er th e residence and farm s
classifications w i t h o u t additional
charge. It is now available in connec­
tion w ith all classifications covering
prem ises.

Treatment of Existing Policies
In accordance w ith the custom ary
procedure, all of th e changes involving
broadening of coverage m ay be en­
dorsed on o u tstanding policies as of
A ugust 16, 1943.

To Sell W a r Bonds
E ig h t life insurance m en have been
assigned w ar bond sales responsibili­
ties w ith th e M innesota W ar F inance
Com m ittee by O. J. Arnold, president
of N o rth w estern N ational Life, state
chairm an.
F ra n k T. McNally, general agent at
M inneapolis for th e M assachusetts
M utual, is designated liaison officer for
life in surance w ith th e responsibility
of stim u latin g th e M innesota agency
forces to vo lu n teer th e ir services to
th e ir local county and tow nship w ar
bond com m ittees in th e forthcom ing
T hird W ar Loan drive. O ther life m en
nam ed as m em bers of th e state com­
m ittee are T. A. Phillips, president,
M innesota M utual, St. Paul; H. P.
Skoglund, president, N orth A m erican
Life and Casualty, M inneapolis; Jo h n
J. Steger, St. P au l m anager for the
M assachusetts M utual and president
M innesota S tate Life U nd erw riters
Association; Alvin I. Johnson, Lincoln
N ational, presid en t of the D uluth Life
U nd erw riters Association; R obert E.
Shay, m anager for th e B ankers Life
of Des Moines and presid en t of the
M inneapolis Life U nd erw riters Asso­
ciation; J. J. W illinger, d istrict m ana­
ger for N o rth w estern N ational and
p resid en t of th e St. P aul G eneral
A gents and M anagers Association; and
A. H erb ert Nelson, a ssistan t m anager
of the T ravelers in M inneapolis and
ch airm an of th e M innesota M ayors
Com m ittee of th e M inneapolis Aquatennial.

HOME MUTUAL INSURANCE COMPANY OF IOWA.
A FU L L LEGAL R ESER V E COM PANY
F I N A N C I A L
H . J . R O W E , P r e sid e n t

S T A T E M E N T

A s of January

1, 1 9 4 3

A SSE T S
U . S. T re a su ry B o n d s ...................................................................
I o w a R oad and I m p r o v em en t B o n d s .................................

A CE R O W E , S ecr eta ry

..................... 434,975.70

L IA 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 ” ......... ..................... $101,851.95
E s tim a te E x p e n se o f A d j u s t in g ............................................ .....................
11,396.84
A s s e t s N o t A d m itte d ......................................................................
R e s e r v e for T a x e s and E x p e n s e s ............................................ .....................
46,285.69

IN S U R A N C E

U n e a rn ed P r em iu m R e s e r v e ........................................................ .....................$553,659.49
S u r p lu s to P o lic y h o ld e r s ............................................................... ..................... 642,661.13

P r e s id e n t

CO M PANY
fiat-

M in n e a p o lis ,

S EC U R IT Y M in n eso ta

Northwestern Banker Septem ber 19^3

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

162,946.06
124,637.16
30,862.80
15,540.57
$1,399,521.70

N o r th w ester n
N a tio n a l L if e
O . J . A rn o ld ,

$1,065,535.11

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

$

203,201.08
1,196,320.62

$1,399,521.70
Increase
Increase
Increase
Increase

in
in
in
in

U. S. Treasury Bonds........................ ..................... $ 7 8 ,8 2 3 .7 6
Unearned Premium Reserve............. .....................
1 6 ,2 1 7 .6 0
Gross A ssets.......................................... .......................
8 9 ,1 2 7 .2 2
Premium Income................................ .....................
1 1 8 ,0 6 4 .2 1

45
and for th e K ansas City Life, is p resi­
dent. L. J. M yklebust is vice p resi­
dent; R. W. Johnson, secretary, and
D an W. Figgins is treasu rer.
LeRoy Secor of th e W ashington N a­
tional is general chairm an of th e con­
v ention com m ittee, and th e various
com m ittee chairm en are as follows: A t­
tendance, J. W. Eagleson; e n te rta in ­
m ent, finance, Dan Figgins; program ,
Clifford De Puy; publicity, H. C hit­
wood; reg istratio n , R alph DeMaris;
reservation, R. W. Johnson; Sergeantat-Arms, A. A lexander; host, L. J.
M yklebust; advertising, Ted Snow, and
reception, H arold Eckey.

Pick Des Moines
For Convention
Des M oines w ill be h o st on Ja n u a ry
11 an d 12, 1944, to a v ery im p o rtan t
in su ran ce convention, th e w in te r m eet­
ing of th e N ational A ssociation of Acci­
den t and H ealth U n d erw riters. Execu-

lessness w ith a recital of needless de­
stru ctio n th a t m akes a joke of our
touted w ar conservation efforts. The
tru th is th a t th ere can be no real con­
servation u n til d estruction of p ro p erty
by fire is effectively curbed.
M any agencies are striv in g to m ake
A m ericans fire conscious. F ire d ep art­
m ents, city, state and F ederal officials,
to g eth er w ith priv ate organizations,
are constantly pounding hom e th e les­
sons of fire prevention. If these les­
sons w ere b u t received in the sp irit
th a t th ey are given—a sp irit of ap p re­
ciation of the value of life and pro p erty
—fire losses w ould curve dow nw ard in
an am azingly sh o rt tim e.

Sickening Record
Local new spapers in tw o im p o rtan t
defense centers carried accounts a
sh o rt tim e ago of tw o disastrous fires.
T hey w ere n o thing unusual. Sim ilar
occurrences are tak in g place all over
th e country. In one of these fires
flames sw ept th ro u g h a planing m ill
and lum ber yard, doing an estim ated
$150,000 damage. In th e o th er fire, an
en tire block in a congested d istrict
w as w iped out, leaving 200 persons
hom eless. Dam age w as estim ated at
$100,000. At th e end of th is y ear the
to tal fire bill for the nation w ill am ount
to th ree or four h u n d red m illion dol­
la rs—a trem endous sum even in these
days of billions.
W ho is to blam e for th is tragic and
disastrous fire loss? No probing in the
ashes of ru ined buildings is necessary
to find th e answ er, because everyone is
to blame. W e are a careless nation.
A ny fire prev en tio n a u th o rity is fam il­
iar w ith th e sickening record, and can
establish proof of our national care­

M A R T I N L. S E L T Z E R
H e a d s H e a lth and A c c id e n t Group

tive offices of th e association are in
Chicago, and E. C. Budlong, form er
Des M oines accident and h ealth v e t­
eran, is secretary -treasu rer. N aturally,
th e real host of th is m eeting w ill be
th e Des M oines A ssociation of A ccident
and H ealth U n d erw riters, an active o r­
ganization of w hich M artin L. Seltzer,
g eneral ag en t for th e G eneral A ccident

G R EETIN G S TO OUR M ANY

S0WA

HEADQUARTERS

for

FIDELITY
& SURETY
BONDS
Iowa Bankers recom­
mend Employers Mutual
because—
1. I t is I o w a ’s l a r g e s t ,
s tro n g e s t b o n d in g co m ­
p a n y — a s s e t s m ore th a n
$6,000,000.00.

h a v e en jo y ed for y e a r s am on g m em bers of the Iow a Bankers

2. Y o u keep Io w a m o n ey in
Iow a.
3. R a te s su b s ta n tia lly low er
on A d m in is tra to rs , E x ­
ecutors
and R e f e r e e
B onds.

A ssociation . Best w ish e s to y o u for your 1943 A nnual Convention.

4. S tric tly n o n -assessab le.

IOWA BANKER FRIENDS!
W e sin cerely appreciate the m a n y fine b u sin ess contacts w e

We specialize in Credit Life Insurance
and are the only loiva company offering
this type of protection to Iowa banks.

W r i t e to d a y for free in fo r m a ­
ti o n on th e a d v a n t a g e s E m ­
p l o y e r s can offer Y O U R b a n k
on a l l t y p e s o f b o n d s fo r y o u r
cu sto m ers.

•

W e b s te r L ife I n s u r a n c e C o m p a n y
1733 Grand A ven u e, D es M oines, Iow a
Northwestern Banker Septem ber 1943

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

46

G iv e Publicity to Fire Prevention
And Remem ber Fire Prevention W e e k— O cto b e r 3-9
P U B LICITY is a m ajor factor in th e
success of a F ire P rev en tio n W eek
cam paign. It is essential th a t the
publicity chairm an be an advertisin g
or publicity m an w ho has a practical
know ledge of th e m ethods and re q u ire ­
m ents of n ew spapers and th e radio.
P ublicity for any cam paign is a fu ll­
tim e job and a paid publicity m an is a
m ost desirable featu re of a cam paign.
A com petent publicity m an w ill act
as th e link betw een th e com m ittee and
new spapers, radio stations, m otion pic­
tu re houses and o th er agencies w hich
are valuable in spreading fire p rev en ­
tion publicity. It should be his func­
tion to collect significant facts w hich
will supply d ram atic m aterial for his
work. T hese w ill include local and n a ­
tional fire loss statistics, and o th er p e r­
tin e n t data. The total fire loss of a
com m unity, for exam ple, can be com ­
pared to specific im provem ents w hich
could be effected w ith the same
am ou n t of money. E v ery o p p o rtu n ity
should be tak en to tra n sla te th e com ­
m u n ity ’s intangible loss figures—in
both lives and dollars—into fam iliar
and m eaningful term s.

Newspapers
N ew spaper publicity w ill fu rn ish
the backbone of th e cam paign. Stories
should be released w ell in advance of
F ire P rev en tio n W eek. D uring th e
w eek stories on v arious activities
should appear daily. The publicity
m an should keep new spapers advised
of th e various events in advance and
give them m aterial for advance copy.
P ap ers should be encouraged to ru n a
sm all box on th e fro n t page, daily,
du rin g th e w eek to record a com pari­
son of fire losses for th e w eek w ith
the sam e period in previous years.
E d ito rial w rite rs should be given
statistics on th e com m unity fire loss;
Sunday editors should be inform ed of
“special fe a tu re ” possibilities and car­
toonists should be fu rn ish ed w ith sig­
nificant ideas for cartoons.

Radio
A rrangem ents should be m ade to
have one or m ore p rom inent speakers
ap p ear on local radio stations daily
d u rin g the week, w ith p erhaps an ad­
dress by th e general ch airm an th e
w eek previous to th e opening of the
cam paign outlining its general p ro ­
gram and purposes. Station program
d irectors will cooperate if th ey are
given sufficient advance notice and
are assured th a t th e speaker w ill p re ­
sen t in terestin g and valuable inform a­
tion. In addition to form al radio ad­
dresses, supply stations w ith sh o rt
fire p revention com m ents w hich he
can in se rt as o p p o rtu n ity p resents
th ro u g h o u t the day’s program . W hen
th e re are no local stations, sim ilar a r­
ran g em en ts should be m ade w ith the
n e a re st large station, w hich cover the
area concerned.

Motion Pictures
E v ery com m unity includes a n u m ­
ber of en thusiastic and capable “hom e
m ovie” m akers. T his tale n t can be
organized for th e p rep aratio n of fire
p rev en tio n films of local interest. In ­
te re st and in g en u ity can be stim ulated
by a contest for the best home-made
fire p rev en tio n film, and th e m akers
rew ard ed by seeing th e ir p ictures dis­
played as p a rt of the reg u lar program
in th e com m unity’s th eatres. The th e ­
a tre m anagers, film exchanges or lo­
cal re p resen tativ es of the news-reel
com panies can arran g e for p rin ts on
th e stan d ard professional size film.
The films should show phases of th e
clean-up w ork, such as groups clean­
ing up basem ents, attics, v acant lots,
etc., as w ell as some of the sim pler
fire hazards w hich lend them selves to
a m ateu r photography.

Posters
P o sters should be used as w idely as
possible. These m ay inlcude sm all
w indow posters, stre e t car advertising
cards, posters for th e fro n t and re a r
of stre e t cars, posters for city vehicles

and th e tru ck s and w agons of local
tra n sp o rta tio n com panies and m er­
chants. W indshield stickers for auto­
m obiles are practical if th ey are rela­
tively sm all and be placed so as not to
o b struct vision, and are not prohibited
by m otor vehicle laws. Special posters
can be attached to fire h y d ran ts and
to fire alarm boxes.

Miscellaneous
Local m erch an ts should be encour­
aged to m ake reference to F ire P re ­
vention W eek in th e ir advertisem ents.
In some cities th e new spapers have
profitably prep ared special F ire P re ­
vention W eek supplem ents, issued at
the s ta rt of th e week, incorporating
special ad v ertising for articles in ­
volved in fire prev en tio n and fire pro­
tection. B usiness houses can be urged
to include a pam phlet on some phase
of F ire P rev en tio n W eek in th e ir local
correspondence. The p rin tin g of a
fire p revention slogan on all bills re n ­
dered and pay envelopes d istributed
d uring th e w eek is an excellent m eth ­
od of publicity and one of the best
item s of m iscellaneous publicity is the
use of F ire P rev en tio n W eek stickers
on correspondence, bills, packages, etc.

G u a ra n ty Trust
Appointm ents
E ugene W. Stetson, p resid en t of the
G uaranty T ru st Com pany of New
York, has announced th e appointm ents
of R obert W. M orey and F ran cis P.
F ord as second vice p residents of the
com pany. Both Mr. M orey and Mr.
F ord w ere form erly a ssistan t tre a su r­
ers, having been associated w ith the
G uaranty for m any years, and w ith
th e ir new ap p ointm ents continue to
be identified w ith th e com pany’s b an k ­
ing relationships in th e New E ngland
states.

S carborough ¿.C ompany
First N ational Bank Building, C hicago

Northwestern Banker Septem ber 1943


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

Horace A. Smith, Iow a R epresentative
D es M oines, Iow a

47

To A d d ress A .B .A .
The H onorable R obert H en ry B rand
of London, E ngland, w ill be am ong th e
featu red speak ers a t th e W ar Service
M eeting, to be held by th e A m erican
B an k ers A ssociation in New Y ork City,
Septem ber 13th-15th.
Mr. B ran d w ill address th e th ird gen­
eral session of th e m eeting, w hich w ill
be held W ednesday m orning, S eptem ­
b er 15th. T his session w ill be given
over to discussions of in te rn a tio n a l fis­
cal policy, w ith p a rtic u la r em phasis
upon in te rn a tio n a l financial relatio n s
in th e p o stw ar w orld.
A d irecto r of L loyd’s Bank, m anag­
ing directo r of L azard B ro th ers &
Com pany, and ch airm an of th e board
of th e N o rth B ritish and M ercantile
In su ran ce Com pany, Ltd., Mr. B rand
is au th o r of n u m ero u s publications on
w ar, in te rn a tio n a l finance, and various
phases of th e political and economic
aspects of th e B ritish E m pire. He is
also a d irecto r of th e L ondon Tim es
P u b lish in g Company.

To Present A w ard
The A ssociation of B ank W om en, a t
its tw enty-first a n n u al m eeting to be
held S eptem ber 11, 1943, in New Y ork
City, w ill again p re se n t th e Je a n A rnot
Reid A w ard of one h u n d re d dollars to
th e m ost o u tstan d in g w om an g rad u ate
of th e S tan d ard Course of th e A m eri­
can In stitu te of B anking.
The w in n e r is chosen from th e ten
young w om en g rad u ates w ith th e h ig h ­
est average and th is y e a r th e candi­
dates are: M argaret M cKinley, U nion

CRUM and
FORSTER
M an agers

N ational B ank of C larksburg, W est
V irginia; K ath erin e K aufm an, Com­
m ercial N ational Bank, K ansas City,
K ansas; Nellie Craw ford, New F irst
N ational Bank, M arietta, Ohio; M ar­
g a rita P. Folks, N ational B ank of
Commerce, San A ntonio, Texas; Virgine M. M artel, San Francisco Bank,
San Francisco, California; Alm a K.
Sprouse, F irst N ational Bank, A lex­
andria, V irginia; D orothy H ennessey,
F irs t N ational Bank, N orth T arrytow n,
N ew York; H elen Kolczynski, F ra n k ­
lin Square N ational Bank, F ra n k lin
Square, New York; Stefania Dobrochow ski, Lincoln-Alliance B ank &
T ru st Company, R ochester, New York,
and E lizabeth Leitch, M anufacturers
N ational Bank, D etroit, Michigan.
T his aw ard w as established in 1936
in honor of Jean A rnot Reid who, in
1921, helped to found th e A ssociation
of B ank W om en, and w ho becam e its
th ird president.
The purpose of this aw ard is to as­
sist and encourage w om en in banking
to forge ahead in th e ir profession and
th e association is eager for them to
tak e advantage of the splendid edu­
cational program offered by th e A m er­
ican In stitu te of Banking.

G r e e t i n g s to

IOWA BANKERS
and

best w ish es for a most

profitable W ar Time Conference
this month in D es M oines.
W e w ill be on hand to extend
best w ish es from a sturdy C asu­
alty com p an y w h o se a ssets dur­
ing the past ten y ea rs h a v e
grown like this:
1932....$634,003
1937............ $880,746
1940.....................$1,283,885

1943................$1,799,011

Writing
Full coverage Autom obile
W orkm en's C om pensation
G eneral Liability

Pension Trust Booklets

Plate G lass

M anufacturers T ru st Company, New
York, is d istrib u tin g a booklet w ith the
heading “Pension and Profit S haring
P lan s,” w hich contains a description
of various retirem en t income and
profit sh arin g plans, and com prises an
analysis of the law s affecting pension
tru sts.

Burglary

HA WK E Y E
CASUALTY COMPANY

Low-Brow

DES

Wife: “A ren ’t those chim es beau ti­
ful? Such harm ony! So en chanting.”
H ubby: “You’ll have to talk louder.
Those dam n bells are m aking such a
racket, I can ’t h ear you.”

MOINES
I OWA

“ One of the Best in the Middle West”

United States Fire Insurance Co.

SEVEN STRAIGHT YEARS

The North River Insurance Co.
W estchester Fire Insurance Co.

CHAMPIONS

British-America A ssu ran ce Co.
W estern A ssu ran ce Co.

OF THE UNITED STATES

CASH . . . a n d . . . VOLUME

W . H. FAULKNER
S tate A g e n t
HOMER TEMPLETON

“n

WALTER NORDELL

S p e c ia l A g e n ts
505 In su r a n c e E x c h a n g e B u ild in g
O fiice T e le p h o n e N o. 4-5932
DES MOINES, IOW A

w.

K. N I E M A N N

T h e W. K. N I E M A N N A g e n c y
Bankers Life C om pan y of Iow a
Nine-O-Nine Flem ing Building

D es M oines

Northwestern Banker Septem ber 19^3

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

48

Increasing Bank Earnings
(C ontinued from page 17)
deposits seem to be on an increase in
spite of th e h eavy bond drives we have
had. In th e A pril bond drive we lose
about $87,000 in deposits, b u t recov­
ered it again in a sh o rt tim e. W e
have $1,050,000 invested in sh o rt­
term loans, as th e re is a possibility we
m ay get th e dem and for m oney w hen
this te rrib le w ar is over. W e have
about an equal am o u n t invested in
real estate loans and ch attel loans and
we are hopeful th a t some day th e gov­
ern m e n t w ill elim inate th e subsidized,
so-called farm ers organizations, th a t
m ake loans both secured and u n ­
secured to farm ers. B usiness as a
w hole is satisfactory, b u t th e help

proposition is som ething we all have
to reckon w ith. Our crops in this p a rt
of th e state are not as good as last
year, b u t it is a fair average crop if it
can be tak en care of.

"W e Like G overnm ent
Bonds"
HENRY E. LEY
C ash ier
S t a t e N a tio n a l Bank
W ayne, N ebraska

W e are investing our excess funds in
governm ent bonds, and none too fast.
W e have at th e p resen t tim e invested
50.7 p er cent of our assets, allocated as

BUSY BANKERS
Like the friendly, accommodating Service
of the
National Fire Group (Iowa Service Office)
606 O ld C olony Building, D es M oines, Iow a
(Two Blocks North of Fort D es M oines Hotel)

WILL H. HARRISON, State Agent
W. K. HANKINSON

RALPH E. RINARD

Our BANKER’S CONTRACT
Gives you . . . .
1. A co m p an y w ith years of
b a n k agency ex perience.
2. A co m p reh en siv e lin e of
policies in c lu d in g :
L IF E
H E A L T H & A C C ID E N T
H O S P IT A L IN S U R ­
A N CE
A N N U IT IE S
3. C om plete B ro k erag e Serv­
ice.
R A L P H E . D e M A R IS
G en eral A gent

The COLUMBIAN NATIONAL

A. A. INGRAM

Special Agents
C. D. W h erry
R. S. In g h am

T. R. M cD onald

to t h e

IOWA BANKERS
ASSOCIATION

H . A. K a rr
L aw rence R adcliffe

★

Hartford Fire Insurance Co.
Citizens Insurance Co.
401 O ld Colony Bldg.

1200 P a r a m o u n t B ld g .
D E S M O IN E S

DES M O IN ES

Northwestern Banker Septem ber 19'+3

GREETINGS

K. L. L ilja

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


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

follows: Local loans, 31 per cent; m u­
nicipal bonds, 11 p er cent; governm ent
bonds, 58 p er cent. Our m unicipal
bond account m atu res 31 per cent from
one to five years, 40 p er cent from five
to ten years, and 29 p er cent over ten
years. The n et rate over all is 3.33
per cent. T he g overnm ent bond ac­
count m atu res 59 p er cent from one to
five years, 36 p er cent from five to ten
y ears and 5 per cent over ten years.
The n et over all rate is 2.05 p er cent.
The reason for th e percentages is a
different m atter. The an sw er is clear
b u t dictated by outside influence. Our
in vestm ent policy today consists of
supplying local dem and and depositing
our su rp lu s funds in reserve city
banks. T hen we have our choice of
investing these su rp lu s funds in gov­
ern m en t bonds ourselves or allow ing
our correspondents to invest our funds
for w hich sm all service th ey receive
th e interest.
W e are a com m ercial ban k in a
farm ing te rrito ry —we first tak e care
of our custom ers. T hey have pros­
pered for th e p ast four y ears—our
loans are dow n and we are pleased.
We have left four m ain avenues of in ­
v estm en t—com m ercial bonds, m unici­
pal and governm ent bonds. AVe are
too far from th e source to be in te r­
ested in com m ercial bonds. W e do not
care for m unicipal bonds because of
th e ir extrem e u n m ark etab ility — but

IN T E R -S T A T E B U SIN ESS
M E N ’S A C C ID EN T
CO M PA N Y
IN C O M E P R O T E C T IO N
ONLY
R o b e rt A. B row n, P resid en t
Des M oines, Iow a

49
we like th e tric k s th ey can do on th e
incom e ta x blank. W e have com pro­
m ised on a reasonable am o u n t of these
secu rities—u sing only N ebraska m u ­
nicipals in all b u t six cases to talin g
$30,000. W e like g o v ern m en t bonds
for we know th e y are th e soundest in ­
v estm en t we can m ake and w e are
satisfied w ith p re se n t rates.
On J a n u a ry 1, 1943, w e noted th a t
ban k s excess reserv es w ere reduced to
$2,132,000,000 from $7,500,000,000 on
Ja n u a ry 1, 1941. A su rv ey of deposits,
loans and in v estm en ts of all m em ber
ban k s convinced us th a t our idealistic
assum ption th a t we w ere rid in g th e
w aves of liquidity to th e tu n e of a 40
p er cent cash reserv e w as erroneous.
Since J a n u a ry 1st of th is y e a r we have
pu rch ased our lim it of bonds on every
g o v ern m en t offering in addition to sev­
eral sizable blocks on th e open m arket.
W e have succeeded in increasin g our
go v ern m en t bond holdings by 220 per
cent and, d o n ’t look now, b u t our cash
reserv e has not been reduced from 40
per cent—it is 50 p er cent. In th e face
of a 220 p er cent increase in gov ern ­
m en t bond holdings, our in v estm en t
account has reduced from a ratio of
60 to 50.7 p er cent.
So you w ould like to know th e in ­
v estm en t p ercentages of th is co u n try
b an k and w h y —th e y are listed above
as th e y actu ally stand. As to w h y a t
th e p re se n t tim e and how to proceed
for th e fu tu re —th e L ord w ill give us
rain, we hope; th e C entral R eserve
B anks w ill dictate our excess in v est­
m en t policy, we th in k , and besides, I
ought to be g ettin g out of h ere and

going fishing. Do you know w here a
fellow could pick up a half dozen A
coupons?

G reetings

We Specialize in

to

BANKERS BLANKET
and
FORGERY BONDS

Iow a Bankers
FR O M

The Northwestern Mutual Life
Insurance Co. of Milwaukee

New Board M ember
M e rc a n tile -C o m m e rc e B ank and
T ru st Company, St. Louis, has an ­
nounced th e election of Dam on DeB.
W ack to th e board of directors. Mr.
W ack is executive vice p resid en t of
th e N ational B earing M etals C orpora­
tion. He joined N ational B earing M et­
als as a ssistan t to th e presid en t in
1941, com ing from th e Pacific Division

of th e A m erican B rake Shoe Company.
He has served as chairm an of th e W ar
P roduction F u n d to Conserve M an­
pow er in th e St. Louis district, served
on the In d u strial Com m ittee of th e St.
Louis C ham ber of Commerce and the
M issouri Com m ittee of Social Hygiene.

Battle of the Sexes
“W ah at did you get dat knob on
yo’ haid, Sam ?”
“In de w ar.”
“W hat w ar?”
“De boudoir.”

For Your R esp o n sib le R isks
W ho N eed B roader P rotection
A llied M utual’s C om preh en sive
P e r s o n a l L ia b ility
P o lic y , o n ly . . .

$14-7°

D efends client's liability and every m em ber of his household
under 21 yea rs of a g e on and off your prem ises
Investigate, write . . . .

ALLIED

MUTUAL

CASUALTY COMPANY
Harold S. Evans,
Hubbell Building

Des Moines, Iow a

Banking and investm ent
exp erience provide an
excellent background for
a life insurance career.
This a g en cy , operating
throughout Iow a, h a s se v ­
eral
attractive
a g en cy
connections for bankers.

J. I. HUGHES
GENERAL AGENT

P resid en t

Write

Your Inquiries Invited

635 Insurance Exchange Building

E. H. SNOW

D es M oines

General Agent
WiTMER-KAUFFMAN
EVANS CO.

"More Ordinary Life Insurance in Force

( E s t a b l i s h e d 1892)

A

E T N

A

LIFE INSURANCE COMPANY

in Jowa than A n y Other Life

410 E q u i t a b l e Bldg.

T h ir d F lo o r, H u b b e ll B ld g .

Insurance C om pany!"

Des Moine s

D es M o in e s

Northwestern Banker Septem ber 19b3

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

50

G et

Cash W ith

H E o th er m orning I w alked into
th e place of business of a client
of m ine for w hom I h ad w ritte n
up an application for life in su ran ce to
deliver th e policy. My client w as v ery
busy, since it w as th e early m orning
ru sh tim e, b u t I felt it m y d u ty as a
life u n d e rw rite r to edge in to get a
few m in u tes of B ill’s tim e regardless
of how busy he was.
“Bill, I am v ery h appy to tell you
th a t you w ere able to m eet th e re q u ire ­
m ents of th e m edical d ep artm en t of
m y com pany and I have y o u r policy
for you, issued ju s t as you applied for.”
“I am so rry b u t I am v ery busy,
can ’t you come back tom orrow m o rn ­

T

G

the A p p

ing? I ’ll have m ore tim e th e n .”
“Bill, it w ill ju st take me a few
seconds to briefly go over this policy
w ith you and th en I ’ll come back to­
m orrow and explain the provisions of
th e policy to you. F irst of all I w ish
you w ould sign this certificate of
h ealth w hich is req u ired w hen a settle­
m en t is not tak en w ith th e application.
H ave you been in good health since
th e day you m ade out your applica­
tion? Are you now in good health?
You know m any things can happen
betw een now and tom orrow m orning
such as an accident, sudden illness
such as influenza, stom ach ailm ent or
even an attack of th e appendix.”

A m e r ic a n L if e
IN S U R A N C E C O M P A N Y

White Insurance Agency
Leon, I o w a

An experience of one of
the customers of this life
salesman well illustrates the
importance of obtaining
the cash with the applica­
tion. Mr. White uses this
story to good advantage
in his solicitation

eneral

W a lter W . H ead, P r esid en t

L ife — J u v en ile (w ith o u t war c la u se )
H ealth and A ccid en t— A n n u ities
G roup In su ran ce
A ccep ted u n d er b rok erage contract.

BARNEY T. MATTESON, C. L. U., Iowa Manager
312 In su ra n ce E x ch a n g e B u ild in g
D es M oines, 9, Iow a

G reetings !
.

By E. Dewey White

. . and a h earty w elcom e

to the m em b ers o f the
IOW A
BA N K E R S ASSOCIATION

W e h a v e p laced a number oi
very satisfactory a g e n c y con­
tracts am ong Iow a bankers w ho
w ere not representing a n y life
insurance com pany.
Under our
in sellin g is
through our
no matter
located.
★

•

HOMESTEADERS LIFE
ASSOCIATION
A . A. B a ll, P r e s id e n t
601 S e c u ritie s B ld g ., D es M o in e s

Northwestern Banker Septem ber 19^3

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

system , direct help
a lw a y s a v a ila b le
District M anagers,
w here you are
★

★

The Equitable Life
Assurance Society
of the United States
★

★

★

M. C. NELSON
State M anager
D es M oines Bldg.

D es M oines

As Bill signed th e certificate of
h ealth and arran g ed for the settlem ent
he started talking. “Yes, I had a v ery
costly experience one tim e w hen I w as
w orking in m y hom e tow n. I w as
w orking for a lau n d ry com pany and
th ey had w h at is called group accident
and h ealth insurance, and w hen I w ent
hom e on T hu rsd ay evening the m ana­
ger handed me an application blank
and briefly explained to me th e pro­
tection, telling me com plete the appli­
cation and brin g it back th e next
m orning. I took it hom e and glanced
over it b u t th o u g h t th ere w as no h u rry
so I ju st p u t it aside and decided I
w ould read it over on Sunday and th e n
take it back on M onday m orning. T hat
n ig h t I took ill w ith th e flu. I didn’t
go back to w ork th e n ex t m orning. On
M onday I th o u g h t I w as w ell enough
to go back and at least ride w ith a
d riv er and show him m y route; how ­
ever, about an h o u r after we w ere on
th e city ro u te I becam e so ill I had to
ask him to take me home. I developed
pneum onia and w as off w ork for four
m onths. I d idn’t have th e insurance
and I w ished a h u n d red tim es I had
com pleted th e application w hen it w as
handed to me.”
I did n ’t tell Bill th a t he w ould not
have received any benefits from his
policy had he com pleted th e applica­
tion im m ediately, since sickness bene­
fits do not become active u n til from 15
to 30 days afte r th e policy is issued
and for disease th a t had its beginnings
p rio r to th a t w ritin g period, because
he had already know n the resu lts of
delay and had learned his lesson. Had
it been an accident or had his illness
resu lted in death he w ould have been

51
th e loser u n d e r his accident policy or
life in su ran ce contract.
Bill w as v ery w illing to tak e th e
tim e to sign th e p ap ers and pay th e
prem ium , and it w as n o t n ecessary for
m e to sell him on th e im portance of
it. H e had learn ed th e lesson long
before. H ad I k now n w h a t w as be­
h in d his p ast experience I w ould have
insisted on a little m ore tim e w hen I
took th e application and collected th e
prem ium , issuing th e binding receipt.
H ow ever, I w as ju s t a little too easy
w hen g ettin g th e application. I have
learn ed th a t from now on I ’ll tell B ill’s
sto ry and get th e cash w ith th e app.

Ruinous M onopoly
The leaders of th e n a tio n ’s largest
labor union, th e U nited A utom obile
and A ircraft W orkers, CIO, have asked
th e g o v ern m en t to tak e over and ru n
basic p riv ate in d u stries a fte r th e w ar,
on th e g rounds th a t such in d u stries
are “m onopolistic” and strateg ically
necessary to th e n atio n al safety.
It is a stran g e th in g for leaders in
any b ran ch of public or p riv ate life to
advocate fu rth e r gov ern m en t dom ina­
tion over th e individual in a nation
th a t is spending th re e or four h u n d red
billion dollars to cru sh gov ern m en t
control over individuals in o th er n a ­
tions. T hey e ith e r do not know w h at
th e y are asking, or th e y are d elib erate­
ly advocating state socialism —precise­
ly th e sam e k in d of liberty-destroying
socialism A m ericans despise.
It is also stran g e to see those leaders
dem anding socialization of in d u stry

T h e E state
P la n n er
p ro cesses the raw m aterial of
life insurance and other a ssets
into a program assuring m axi­
m um safe incom e for client and
client's fam ily.
Banking background helpful
in m astering this sp ecialized
work. For information on op en ­
in gs, full time a gen t or broker­
a g e b a sis, ad d ress
CHARLES M. MAXWELL

on th e plea of strategic necessity.
T his w ar is being w on because priv ate
in dustry, th e plane and ta n k factories,
th e shipyards, the coal and m etal
m ines, th e oil, electric pow er and other
n a tu ra l resource in d u stries tu rn e d to
th e task of building a w ar m achine
from scratch w ith a do-or-die determ i­
nation. Success has been achieved to an
undream ed of degree—success th a t has
been m arred by b u t one serious inci­
dent over w hich m anagem ent had no
control: The coal strike. A fter in d u s­
try has proved its ability to m eet a
w ar em ergency efficiently and quickly,
it is p ure h y procrisy to dem and th a t
it be tak en over by governm ent in the
in terests of national safety.

It is even stran g er for leaders of
organized labor to advocate g overn­
m ent ow nership of in d u stry on the
ground of monopoly. A ny in d u stry
th a t is a m onopoly can be regulated or*
otherw ise controlled by law. On the
o th er hand, unions have dem onstrated
th e ir ability to w reck priv ate industry,
ju st as they have dem onstrated th e ir
pow er to say w hen, w here and how
m illions of priv ate citizens m ay m ake
a living. T hey exercise unregulated,
m onopolistic pow er over th e m ost val­
uable asset th e nation possesses—the
skills of A m erican w orkm en.
If th is kind of m onopoly prevails,
our days of individual liberty are n u m ­
bered.

OUR PRUDENTIAL AGENCY OFFERS
1. A C om pany w ell and favorably known.
2. P olicies at favorable initial rates.
3. Your Contract a sin gle c a se brokerage agreem ent guaranteeing all first and ren ew al com m issions.
4. A ssistan ce in presenting and closing c a se s from a n yon e of
"We Three” and No Split C om m issions.
SIDNEY A. KENT, M anager
Fred Van Rheenen, Les Brooks, A ssistant M anagers
716 Equitable Building, D es M oines
Home Office, N ew ark, N. J.

The
Connecticut Mutual
Life Insurance
Company

S un L ife

(Since 1846)

We have a few desirable
agency openings in Eastern
Iowa

OF CANADA
Facilities, not restrictions
Privileges, n o t pro h ib itio n s

Eastern Iow a A g e n c y
WRITE

640 D es M oines Building
Des M oines
T elephone 3-7644

PAUL C. OTTO

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

1112 D avenport Bank Building
Davenport, Iow a

G e n e ra l A g en t

WM. R. W ITH ER S
B ran ch M anager

731 Insurance Exchange Bldg.
DES MOINES, IOWA
Northwestern Banker Septem ber 19^3


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

52

To Feed--or Not to Feed
(C ontinued from page 15)

C a ttle Feeding O perations
W ill Be R educed "
WARREN GARST
C ash ie r
Home S ta te Bank
Jefferson. Iowa

The farm ers in our com m unity are
p re tty w ell d istu rb ed about th e g en­
eral livestock and feed situation. A
n um b er are selling piggy sows th a t
th e y had planned to keep for fall
farrow . In p a rt th is is due to th e help
situation, b u t to a larg er degree it is
due to th e feed situation.
A few are s e l l i n g stock cattle,
although from w h at ap pears to be

ahead for them , our guess is th a t not
enough cattle are being culled out now.
Those w ho m ight norm ally be th in k ­
ing now about plans for gettin g in
some feeders are postponing any de­
cision u n til th e price of feeders comes
dow n some more. T hey can see
no advantage in buying feeders at
p resen t prices of feed and feeders, and
p resen t prices of fat cattle. Those who
have been big feeders in the p ast will,
from th e w ay things look now, cut
th e ir operations dow n a good deal and
w ill not p u t in any m ore cattle th a n
th e y have feed on h and or surely in
sight. In general, we w ill be surp rised
if cattle feeding operations are not
m aterially reduced.
Some of the farm ers w ill tell you

THE D A R L I N G
AGENCY
BANKERS LIFE COMPANY
818 M erchants Nat. Bk. Bldg.
CEDAR RAPIDS, IOW A

Attractive contracts for
bankers— part-time basis
F IR S T POLICY ISSUED
FEBRUARY 1.1843

The Mutual Life Ins. Co. of N. Y.
P

P

P

1843-Our 100th Anniversary Year-1943
O ne Hundred Y ears
of
Protection and Security
P

P

P

A n Attractive Contract for
Career Underwriters
and
Thorough Training and
Field Supervision

THOMAS B. READ, Mgr.
1122 D es M oin es B ld g.
D es M o in e s, I o w a

Northwestern Banker Septem ber 1943

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

4»

th a t th ey cannot afford to feed hogs
if corn w ent higher. Our guess is th a t
corn could go some h ig h er w ith o u t
bo th erin g a feeder w ho w as doing a
decent job. In fact, we suspect th a t
th e feeding ratio is too high and th a t
th e pressu re to hold feed for feed
instead of selling it comes from this
w ide spread. Hence, even if corn w ent
up some, th ere w ould still be lots of
hogs raised in G reene County.
The tragedy is th a t th e boys in
W ashington did not open up and re ­
lease all restrictio n s on corn in the
sp rin g of 1942. I happen to know th a t
th ey had a lot of arg u m en t and reason
advanced to th a t end—b u t w ere not
able or w illing to see th e p ictu re as
o thers saw it and as it has since de­
veloped.
T aking things as th ey are now, we
w ill have to reduce our livestock pic­
tu re nationally as th ere w ill be less
feed th a n the needs call for. W e can
store corn w hen we have a su rp lu s of
that, b ut we cannot p u t a hog or a
steer into a crib and hold him for six
m onths or a year. W e w ill still feed
all th e feed we have, b u t th a t w ill also
m ean a reduction in th e num ber and
th e w eight of livestock. The situation
in our co u n try w ill not be as bad as it
w ill in counties th a t norm ally buy a
considerable p a rt of th e ir needs, how ­
ever.

Why Not Represent
“The D ividend Paying
Com pany of Am erica”
In Your Territory?

W e feature a sp ec ia l 20-pay or Ordi­
nary Life Policy insuring ALL m embers
of the fam ily in ONE p olicy. Inquiries
invited.

We have 16 B anker Agents in
Southeastern Iowa.

®

W rite: Jam es H. Copeland

T. D. CARNAHAN
G eneral A gent

The Minnesota Mutual
Life Insurance Co.
606 W alnut Building
D es Moines

301-2 F ir s t N a t. B a n k B ld g .,
D a v e n p o r t, Io w a

fo r contract

The Northwestern Mutual Life
Insurance Co. of Milwaukee
Ins. in force-------- $4,126,442,987
Assets -------------- 1,525,724,943
M o re O r d in a ry L ife I n s u r a n c e in fo rc e
in Io w a th a n a n y o th e r C o m p an y .

53

"Farm ers W ill Not Raise A s
M any Pigs"
k. j

. Mc Do n a l d

President
Iowa Trust & Savings Bank
Estherviile, Iowa

Indications are th a t farm ers will not
raise as m any sm all pigs as originally
planned. Some piggy sows are now
being m arketed. T he reasons for this:
A lack of confidence in th e a d m in istra ­
tion policies and program , and a feel­
ing of u n c e rta in ty as to ju s t w h at the
ad m in istratio n w an ts done, or w ill
itself do. The second reason is th e
shortage of help and equipm ent. A
th ird factor is th e u n c e rta in ty as to
feed and feed costs. M any feel th a t
w ith th e sh o rtag e of grain, g rain prices
m ay advance to th e point w h ere hog
feeding m ight becom e unprofitable.
I believe th e m ark etin g records in
Chicago show th a t th e average price
for corn and hogs over a period of
years show s th e relatio n of 11.6 b u sh ­
els of corn to 100 pounds of hogs.
U nder n o rm al conditions I believe
farm ers w ould continue to raise hogs
and m ark et th e ir corn in th a t m an n er
to th e ex te n t of th e ir capacity insofar
as labor and eq uipm ent is concerned,
if th e ratio did not drop below 12 to 1.
L abor and equipm ent are becom ing
in creasin g ly deciding factors, and
even w ith th e continuance of th e p re s­
en t ratio th e re w ill be m aterial re ­
duction over original inten tio n s, and
th e p roduction w ould probably be less
th a n th a t of last fall. W ere th e ratio
to be fu rth e r reduced, th e reduction
w ould becom e m ore m arked, and if
th e ratio w ere to be reduced below a
12 to 1 ratio our p roduction w ould fall
m aterially below norm al. As a m a tte r
of fact u n d er p resen t conditions I am
inclined to believe th a t th e dividing
po in t w ould be closer to 13 to 1 ratio.

"N ew Purchase of Livestock
Being C u rta ile d "
CHARLES W. LOGAN
President
First Trust & Savings Bank
Moville, Iowa

Our stock feeders ap p ear to be c u r­
tailin g th e ir new purch ases of live­
stock. C attle bought and fed w ith in
th e last six m onths have show n v ery
little if any profit. If th e prices of
feeder cattle should decline som ew hat
now, it m ight change th e feeders a tti­
tude. F ro m th e cattle feeders sta n d ­
point, it w ould not seem good business
for th e m to en te r th e cattle feeding
v e n tu re except in lim ited num bers.

L e ft, SH ER R Y

F IS H E R

R ig h t, C L A U D E F IS H E R

CONNECTICUT M UTUAL LIFE INSURANCE CO.
FISHER & FISHER, General Agents
921 Flem ing Building, Des M oines
In q u irie s invited for B rokerage or P a rt T im e C o n tra cts

LOWER INTEREST

1 1

GHER TAXES

Many bankers are profitably solving these problems for both
the bank and the client through the personalized financial
planning service of
IOWA'S OLDEST LIFE INSURANCE CO M PAN Y
May we give you the details?

Equitable Life Insurance Company of Iowa
Frank L. M cCorm ick, G en e ra l Agent
419 Equitable Building

DES M OIN ES, IO W A

S tate F a r m M e m b e rs h ip P la n gives
y o u m o re in s u r a n c e fo r y o u r m o n e y .
A p e r p e tu a l p o lic y h a s sa v ed p o lic y ­
h o ld e r s o v e r $40,000,000 sin c e 1922.
O v e r 1,000,000 c ars h a v e b e e n in s u r e d .
O v e r 7,000
C anada.

a g e n ts

in

40 sta te s

and

O v e r 200,000 c laim s s e ttle d y e a rly —
o n e e v e ry 2.6 m in u te s .
S ta te F a r m M u tu a l p o lic ie s a re n o n ­
a ssessab le.
W r ite f o r F R E E B o o k le t f o r d e ta ils.

State Farm Insurance Co.'s
Io w a S tate A g en cy
805 V a lle y B a n k B id g .
D es M o in e s, Io w a

L O Y D B. G E T T Y S

The Mutual Life
Insurance Company
of New York
1 OO Y e a r s O l d
Loyd B. G ettys, M anager
First N ational Bank Building
DAVENPORT, IOW A
Northwestern Banker September 19^3


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

54

" C a ttle Situation M ore
Serious Than H ogs"
OSCAR C. BURKE
President
Exchange Bank
Lennox, South Dakota

I believe th e u n c e rta in ty of corn and
livestock prices will have a tendency
to put hogs on th e m ark et a g reat deal
ligh ter th a n in th e p ast year. The price
of corn will not, of course, affect the
num b er of hogs going to m arket, as
they are already on th e farm s, hut,
as stated before, no doubt th ey will not

be as well finished.
It looks to me th a t th e cattle situ a­
tio n w ill be m ore serious. The feeders
of cattle are not m aking plans for
p u rch asing feeders. N orm ally at this
tim e of th e year the m ajority of feeders
m ake th e ir plans and s ta rt purchasing
the cattle w hich th ey expect to place
on full feed a little later in th e fall.
So far we have not had any applica­
tions for cattle loans of any conse­
quence. If corn goes m uch higher,
and cattle rem ain at th e sam e price, I
am afraid th ere w ill be a lot of cattle
going to th e m ark et directly off grass.

NEWELL C. DAY sa y in g . . .
that b u sin ess
of 1942 and
com plete tool
to A nnuities
lem s.

is fine— 40 per cent ah ead
that Bankers are using our
kit from Juvenile Insurance
to solve their clients' prob­

W hy don't yo u investigate?

NEWELL C. DAY, GenT A gen t
Equitable Life Ins. Co. of Iow a
730 Davenport Bank Bldg.

1867

Davenport, Iow a

. . S eve n ty-six th A n n iversa ry Y ear . .

1943

"Farm ers A re Undecided A s
to W h a t to Do"
C. W. ANDERSON
Vice President and Cash ier
C it y State Bank
Madrid, Iowa

A good m any farm ers in our com m u­
n ity are som ew hat undecided as to
w h at to do reg ard in g th e production
of m ore livestock because of th e confu­
sion th a t exists in th e price set-up.
If th e price of corn goes up th ere w ill
be considerable cu rtailm en t in hog
production n ex t year; if prices rem ain
at th e ir p resen t level our farm ers w ill
go along about as th ey have this past
season. As to th e cattle situ atio n here,
we find th a t our farm ers are n ot re ­
filling th e ir feed lots at th e p resen t
and will probably not do so unless th ey
can be purchased at m ore favorable
prices. We have prospects for an
am ple feed supply, except for a hail
d istrict a few miles n o rth of us, and
m ost of our sealed corn w as redeem ed
and is still on the farm .

"Farm ers A re Bewildered
W ith W ashington
Statem ents"
N. P. BLACK

MARTIN L. SELTZER

MERCHANTS
MUTUAL

BONDING
COMPANY
I n c o rp o r a te d 1933

H om e Office
V A L L E Y B A N K B U IL D IN G

Des M o in e s, Io w a

G eneral A gent for Iow a

Kansas City Life Insurance Co.
1024 Des M oines Bldg.
DES MOINES, IOWA

A WHOLE-LIFE POLICY WITH
y2-RATE PREMIUMS FOR
THE FIRST 20 YEARS
. . . to d a y 's a n s w e r to th e n e e d for p e r m a ­
n en t p ro tectio n a t lo w cost. T h is is NOT a
"term " p o lic y . It h a s c a s h , lo a n a n d e x ­
te n d e d in s u r a n c e v a lu e s .
AT AGE 30 M a le or F e m a le

$25,000
•

•

R eq u ires D ep o sits ot O n ly

$31.50
T h is is Io w a ’s o ld e s t s u re ty c o m p a n y .
A p ro g re s s iv e c o m p a n y w ith e x p e r i­
e n c e d , c o n s e rv a tiv e m a n a g e m e n t. W e
a re p r o u d o f o u r h u n d r e d a n d fifty
b a n k a g e n ts in Io w a.
T o b e th e e x c lu s iv e r e p re s e n ta tiv e of
th is c o m p a n y is an asset to y o u r b a n k .

•

•

W rite to

p er m onth
AGE 40, S10,000— $18.80 p er m onth
AGE 50, $10,000— $31.00 p er m onth
(R ates a re p ro p o rtio n a te for o th er a g e s .
L im its $2,000 to $50,000)
W a r C o n d itio n s D em a n d A d e q u a te Pro­
tectio n for D e p e n d e n ts a t L ow C ost

KANSAS CITY LIFE
INSURANCE COMPANY
K ANSAS CITY, MO.

ORGANIZED 1895

N et A d m itted A s s e ts $138,522,397.22
INSURANCE IN FORCE $515,000,000.00

E. H . W A R N E R
S ecr eta ry and M an ager

Northwestern Banker Septem ber 1943

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

A ttra c tiv e p a r t tim e c o n tra c ts fo r
b a n k e r s a n y w h e re in Io w a.

C ash ie r
Perry State Bank
Perry, Iowa

You ask w hat has th e effect been on
th e farm ers of th is com m unity of th e
u n c ertain ty of corn and livestock
prices. T hey are bew ildered, loosing
confidence in statem en ts issued from
W ashington.
Can farm ers afford to feed corn at
p resen t prices? P ersonally I believe
a good hog m an can feed corn to hogs
at th e p resen t m ark et and m ake the
corn net him about $1.25 per bushel.
On this basis a good experienced hog
farm er can afford to feed corn to hogs
at th e p resen t price of corn up to the
tim e his hogs reach 200 pounds.
In our com m unity, we have m ore
hogs th an one year ago. Our corn crop
com pares favorably w ith th e 1942 crop.

O ffice in N avy Y ard
The T reasu ry D epartm ent has desig­
nated M anufacturers T ru st Company,
New York, as a depositary and finan­
cial agent of the U nited States G overn­
m ent, to perform th e follow ing func­
tions a t the B rooklyn N avy Yard for
the du ratio n of th e em ergency:
1. Provide paying and receiving fa­
cilities for N avy personnel.
2. F u rn ish cash to disbursing offi­
cers of th e Navy.

55

September W a r Bond Drive Important
Must Make Every Effort to Sell Individuals During the Cam paig n, Be­
cause Upon the Results of This Jo b Depends the Size of the Bond
O ffering fo r Bank Funds in O cto b e r
IN T H E p ast few
w e e k s we h a v e
been w i t n e s s i n g
“dog d ay s” in th e
m ark ets. T he vol­
um e of tra d in g in
th e stock m a r k e t
has been sm all and
price changes have
j a m e s

h

.

c l a r k e

}3e e n

u n im p o rta n t.

T he sam e is tru e in
th e g o v ern m en t bond m ark et, although
th e re have been signs of some in ­
creased activ ity in m unicipal and cor­
po rate bonds.
The m a rk e t is h aving g re a t difficulty
in in te rp re tin g th e w a r new s. The
successes in Ita ly have been especially
puzzling from an in v estm en t sta n d ­
point. B uyers of com m on stocks—w ho
alw ays have th e ir w o rries—have been
afraid for some tim e th a t peace m ig h t
come quickly. At least, before th ey
w ere able to dispose of holdings of
stocks in co rporations w hich are de­
p en d en t on w ar for th e ir earnings.
P e a c e fr o m a lo n g r a n g e s ta n d p o in t
is a lw a y s m o s t c o n s tr u c t iv e fo r s to c k
p r ic e s , b u t th e im m e d ia t e e ffe c t is u s u ­
a lly bad. I n v e s t o r s in s u c h s e c u r itie s
r e c o g n iz e th a t fo llo w in g th e w a r th e r e
w ill be a p e r io d o f r e c o n v e r s io n o f w a r
p la n ts in to p e a c e -tim e a c tiv itie s , w h i c h
m e a n s u n e m p lo y m e n t, lo w e r e a r n in g s ,
a n d la rg e n e w d e v e l o p m e n t c o sts.
S tr a n g e ly e n o u g h , m a n y o f th e soc a lle d “w a r s to c k s ” so ld a t th e i r b e s t
p r ic e s j u s t a fte r th e w a r s ta r te d in
1939. F o r in s ta n c e , D o u g la s A ir c r a ft
s o ld a t 74V2 o n S e p t e m b e r 5, 1939, as
c o m p a r e d to a p r ic e o f a r o u n d 60 as w e
w r ite th is .
S te e l c o m p a n ie s , w h i c h
a lw a y s r e a c h a v e r y h ig h r a te o f p r o ­
d u c tio n d u r in g a w a r , o ffe r e x a m p le s
o f th e fa c t th a t th e m a r k e t b e g in s to
d is c o u n t th e e n d o f th e w a r a lm o s t as
s o o n as i t s ta r ts . B e t h l e h e m S te e l so ld
a t 85V% o n S e p t e m b e r 5, 1939, a n d is
n o w a b o u t 60, w h ile U. S. S te e l so ld a t
66 Vs f o u r y e a r s ago o n th e s a m e d a te
a n d is n o w a r o u n d 54.

The exp erts in W ash ington predict
that the w ar w ill last in E urope an ­
other year and th at it w ill take at least
a second year follow in g that to defeat
Japan. There are som e m ilitary strate­
g ists w ho are even m ore p essim istic

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

T h e M o n th 's M a rk e t M a n e u v e rs
P rep a red fo r
The N orth w estern

Banker

By Jam es H . C larke
Assistant Vice President
American National Bank & Trust C o .
Ch ic ago

than this, and rela tiv ely few w ho are
op tim istic. The stock m arket itself,
on the other hand, is apparently at­
tem ptin g to forecast the end of the
w ar before that tim e and as lon g as
th ese u n c e r t a i n t i e s continue, the
m ovem en ts of stock prices w ill be rela­
tiv ely lim ited.

The bond m ark et has been strong
w ith th e exception of second grade cor­
p orate issues, w hich have followed th e
g eneral tre n d of the stock m arket.
The m edium grade railroad bonds have
been m ore sh arp ly affected by talk of
peace th an any of th e o th er issues.
This is a logical developm ent, as it is
recognized everyw here th a t th e bulk
of the extrem ely large earnings w hich
th e roads are rep o rtin g is a resu lt of
th e high activ ity in p lants producing
w a r m aterials. The fu tu re of railroad
bond prices, in fact, seem s to be tied
up ra th e r closely w ith the fortunes of
th e Allies in th is w ar. If th e R ussian
arm ies are p re tty w ell slowed dow n
on th e E a ste rn F ro n t, and if the B rit­
ish and our own forces find th a t th ey
are faced w ith m uch h ard er fighting
th a n has been experienced to date, th e
people likely w ill again begin to look
to th e rail bonds. F rom a stu d y of
railroad operating figures, it is ap p a r­
en t in a nu m b er of system s th a t a
cessation of the w ar w ill quite quickly
affect th e ir financial positions.
A t th e p r e s e n t tim e , m o s t b a n k e r s
a re c o n fin in g th e ir la rg e p u r c h a s e s , o f
c o u r se , to g o v e r n m e n t b o n d s. T h e p a t­
te r n o f g o v e r n m e n t b o n d fin a n c in g as
a n n o u n c e d fo r th e T h ir d W a r L o a n
D r iv e in S e p t e m b e r a n d fo r th e b a n k
fin a n c in g in O c to b e r fo llo w s th e s a m e
o u tlin e as w e s a w in th e D e c e m b e r
(1942) d r iv e a n d th e A p r il d r iv e o f

th is y e a r. S in c e 8,500 b a n k s in th e
c o u n t r y a re n o w q u a lifie d fo r W a r
L o a n D e p o s it, m o s t o f th e m are a w a it­
in g th e n e w is s u e s b e fo r e m a k in g i n ­
v e s tm e n ts . T h e a c t iv i ty in is s u e s a l­
r e a d y o u ts ta n d in g h a s b e e n d e c r e a s e d
b y th is a n d it is l ik e l y th a t th is s itu a ­
tio n w ill c o n tin u e fo r a lo n g tim e .

The 7/s p er cen t one year C ertificates
of in d eb ted n ess are being purchased
in larger am ounts by banks in the
cou n try w ho have found that in v est­
ing fu lly is the b est policy for them .
W here banks are still h olding large
am ounts of cash, and w h ere the old
fear of a m arket break after the w ar
still ex ists, it is readily apparent that
th ese Certificates of In debted ness are
an ex cellen t su bstitute for cash. The
2 per cent bonds due in about eigh t to
ten years w hich the T reasury has been
offering in each of its recent bits of
financing have lik ew ise been very pop­
ular w ith country banks. In the A pril
financing th is issu e w as purchased in
su bstan tial am ounts by a large num ­
ber of banks w ho p reviously had paid
very little attention to governm ent
bonds. In the past, w e have su ggested
to banks that th ey confine th em selv es
to bonds w ith in the ten year m aturity
range, and n o th in g has developed re­
cen tly to change our opinion on this.

The in te re st of ban k ers in th e Sep­
tem ber W ar Loan D rive is two-fold.
F irst, it w ill be necessary to lend every
effort to sell th e various issues to de­
positors and also non-depositors, if we
are able to reach them ; and second, the
total sales m ade du rin g th is drive will
be im p o rtan t to us as an indication of
how large th e offering for b ank funds
w ill be in October. The T reasu ry De­
p a rtm e n t is asking for $15,000,000,000
in th e Septem ber drive, and if th ere
is a good over-subscription it is prob­
able th a t th e October offering w ill be
sm aller. The T reasu ry announced
some tim e ago th a t it w ould need
about $33,000,000,000 in th e final six
m onths of this year. This includes the
$15,000,000,000 to be raised in th e T h ird
W ar Loan Drive, as w ell as th e u n ­
know n am ount to be secured from
banks in October. The T reasu ry is
able to secure a relatively sm all
am ount each w eek th ro u g h th e sales
Northwestern Banker Septem ber 1943

56
of bills, and on A ugust 1st raised
$900,000,000 by selling a larg er am ount
of C ertificates of In debtedness th a n
m atu red on th a t date. The T reasu ry
likew ise secures m oney daily th ro u g h
th e sales of Series E, F and G Bonds,
and in some m o n th s th a t is quite a
substan tial figure. W h eth er or not
th ere w ill be a F o u rth W ar L oan D rive
in D ecem ber th is y ear depends upon
th e am ount of m oney raised betw een
now and th e end of the October drive.
T here are some reasons to believe th a t

th e D ecem ber drive — w hich at one
tim e w as considered to be certain —
m ay not be necessary afte r all.
T h e r e w a s s o m e in d ic a tio n o f a
s lo w -d o iv n in s p e n d in g b y th e g o v e r n ­
m e n t i n th e m o n t h o f J u ly . I t m a y be
th a t th is is o n ly te m p o r a r y , b u t i t w ill
be in te r e s tin g to fo llo w th e fig u r e s as
t h e y a re r e le a s e d fo r th e b a la n c e o f th e
y e a r. A t th e p r e s e n t tim e o u r g ro ss
n a tio n a l d e b t is s o m e w h a t le ss th a n
$150,000,000,000, a n d i t is e x p e c te d to

BONDS
P ublic U tility

St. Joseph M arket Shows
Big increase for 1942

Industrial

St. Joseph, M issouri, as one of the
ten larg est livestock centers in the
U nited States, again in 1942 played a
m ajor role in th e m ark etin g of th e
n atio n ’s livestock. D uring 1942 St.
Joseph ran k ed te n th in cattle receipts
(excluding calves), eighth in hogs and
n in th in sheep am ong th e sixty-eight
public livestock m ark ets subm itting
rep o rts to th e U nited States D epart­
m ent of A griculture.
C attle receipts du rin g 1942 showed
an increase of 15 p er cent over 1941;
hog receipts show ed a gain of 19 per
cent, and sheep and lam b receipts in ­
creased 11 per cent. Shipm ents w ere
received from tw enty-one states and
shipm ents w ere also m ade to tw entyone states although, as usual, th e m a­
jo r portion of receipts w as slaugh­
tered locally. T he dem ands of our
arm ed forces, lend-lease reciuirem ents
and th e increased p u rchasing pow er
of civilian consum ers contributed to
th e increased activ ity in livestock pro­
duction d uring 1942.
The valuation of livestock handled at
th e St. Joseph m ark et in 1942 showed
an increase of some 33 per cent as
com pared w ith 1941. T his increase in
v aluation w as significant in view of
th e fact th a t livestock provides a m a­
jo r portion of farm incom e and also
because it em phasizes th e im portance
of th e p a rt played by th e term in al m ar­
kets in p rotecting the livestock pro­
du cer’s in v estm en t in, and his income
from , this basic industry. The public
m ark ets serve th e nation by serving
the producer. It m ay also be said th a t
du rin g th is critical period w hen de­
m and is intensified, th e public m arkets
ren d er a valuable service by helping
to provide for th e w idest and m ost
efficient d istrib u tio n of livestock to the
processors and th u s expedite the m ove­

R ailroad
M unicipal

A.C.ALLYNandc o m p a n y
In corp orated
100 W e s t M onroe S tr e e t, C h ica g o
N ew Y ork
R e p r e s e n t a t iv e s :

M ilw a u k e e
W a te r lo o

O m aha

B o sto n

D e s M oin es

C edar R a p id s

I1 ___________________________________________

Specializing in

Investm ent Management

BOND
REQUIREMENTS

In d iv id u a l, E s ta te

fo r

and

In v estm en t B ankers

In s titu tio n a l

■ ■ ■

A c c o u n ts

for

W IL LIS
and

s ___ x

M OORE
G eneral In su ran ce
201 L ib erty Bldg., Des M oines

GENERAL AGENTS FOR
CONTINENTAL
CASUALTY COMPANY

Northwestern Banker Septem ber 1943


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

go a s h ig h as $210,000,000,000 o r m ore
b y th e e n d o f J u n e , 1944. P r o b a b ly
a fte r th e T h ir d W a r L o a n D r iv e is o u t
o f th e w a y a n d fig u r e s h a v e b e e n r e ­
le a se d in d ic a tin g th e s iz e o f th e p u b lic
p a r tic ip a tio n , i t w i ll be p o s s ib le to
e s tim a te h o w m a n y b o n d s th e b a n k s
o f th e c o u n t r y w ill be c a lle d u p o n to
b u y i n th e b a la n c e o f th is fisca l y e a r.
O ne fa c to r o f u n c e r t a i n t y in th e p ic ­
tu r e is th e n e w t a x la w w h i c h p r o b ­
a b ly w i ll n o t be r e a d y fo r th e P r e s i­
d e n t’s s ig n a tu r e u n t i l s o m e w h e r e
a r o u n d th e fir s t o f th e y e a r. I t is a
c e r ta in ty , h o w e v e r , th a t r e g a r d le s s o f
th e tr e n d o f s p e n d in g — e v e n i f w e h a v e
p a s s e d th e p e a k , w h i c h is d o u b tfu l —
th e b a n k s m u s t lo o k fo m v a r d to th e
pu rch a se of m a n y m ore g o ve rn m en t
b o n d s.

« I. C .
In s u r a n c e

E

n y a r t

Exchange

Building

Des Moine s, Io w a

57
m en t of th e finished pro d u ct into con­
sum ing channels.
F u rth e rm o re , livestock received at
th e open m a rk e ts m oves into legiti­
m ate ch annels and th ese m a rk e ts
th erefo re co n stitu te one of th e best
safeguards ag ain st black m a rk e t oper­
ations.
In accordance w ith its w artim e re ­
sponsibility, th e St. Joseph m a rk e t is
again in 1943 bending every effort to
supply th e pro d u cer w ith the m ost
efficient m a rk e tin g service possible in
o rd er to provide for a steady flow of
livestock into processing and consum ­
ing channels.

C, D and E are overdue,
Or are they, now—le t’s see:
H, I and J are good today
(See m em o 3-0-3)

So, sing a song of rationing
A nd sin g it, b ro ther, sing!
The help you give w ill help m en live
W here F reed o m ’s echoes ring!

You struggle hom e a t nightfall
W ith b listers on y o u r rear,
B ut listen, bub: out on some sub
A sailor’s glad you’re here.

Named Assistant Secretary

Some soldier’s glad y o u r’re w orking,
He know s y o u ’re in a jam;
He sends you th a n k s for food and
tanks,
A nd so does Uncle Sam!

The board of directors of th e Live
Stock N ational B ank of Chicago re ­
cently elected T hom as J. F ra h e r assist­
a n t secretary of the tru s t departm ent.
Mr. F ra h e r has been connected w ith
th e b ank for th e p ast eight years, spe­
cializing in real estate financing.

Ode to R ation Banking
OR

Little Banker, W h a t Now?
B y N orm an Sage, Iow a City

O, sing a song of rationing,
Of points for gas and m eat.
O, sing it long and loud and stro n g
A nd sh o u t it in th e street.
O, count th e little coupons
Of red and green and blue,
Count A and B and C and D
A nd 17 ( th a t’s shoe).
Y our custom ers are w aiting:
T hey w a n t to pay off loans.
T hey w a n t th e facts on th a t new tax.
(Those noises are y o u r groans.)
Now count ’em rig h t th e first tim e
( I t’s enough to drive you daft),
A nd post ’em n e a t upon th e sh eet—
W h a t’s this? An overdraft!
Y our cu stom ers are w aiting:
T hey w a n t to d ra w th e ir w ills,
A nd if you said you w ished ’em dead,
T h ey ’d chase you to th e hills.
Now th ese go in th a t envelope,
A nd these go h e re —and th e re —
A nd now you pause and sigh because
You’ve coupons in y o u r hair.

Federal Intermediate Credit Bank
Consolidated Debentures Offer. . .

L iq u id ity
T h e y always have a ready market. W hen their
m aturity is six m onths or less they may be purchased
by Federal Reserve Banks and are acceptable as
collateral for fifteen-day loans to member banks.
T he debentures are legal investm ent for trust funds,
insurance companies and savings banks in N ew York
and other states. They are eligible to secure fiduciary,
trust and public funds, including war loan deposit
accounts, under authority or control of officers of
the U nited States. These joint and several obligations
of the twelve Federal Interm ediate Credit Banks

Y our cu stom ers are w aiting:
T hey w a n t to cash th e ir checks.
Is it a crim e to tak e th e tim e
To w rin g th e ir scraw n y necks?
Now so rt ’em out and prove ’em,
A nd check ’em back again.
(N ew ru les today from O. P. A.
To try th e m inds of men!)
Your custom ers are w aiting:
To buy some bonds and stam ps.
A series E or F or G?
M ake up y o u r m inds, you tram ps!

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

are issued in m aturities of three to twelve months.

THE FED ER A L I N T E R M E D I A T E CREDIT BANKS
Information regarding the Consolidated Debentures,
issued by these Banks, may be obtained from

C H A R L E S R. D U N N , F i s c a l A g e n t
31 N a s s a u S t r e e t , N e w Y o r k 5, N . Y.

Northwestern Banker Septem ber 19k3

58

O ffice r Dies

STATE

MUNICIPAL
and

REVENUE BONDS

F u n eral services for W illiam J.
B arkell, Des Plaines, w ere held last
m onth. He w as 51 y ears old and died
of a h e a rt attack in his home. Mr.
B arkell w as em ployed by the F irs t
N ational B ank of Chicago for 35 years,
the p ast eight as an officer in th e dis­
count departm ent. He is survived by
his wife, H attie; a son, W illiam , and a
b rother, C harles F. B arkell.

BALLARD-HASSETT COMPANY

Home Financing

312 V a lley Bank Building

Savings and loan associations con­
tin u ed th e ir recen t recovery in hom e
financing activ ity du rin g June, w hen
th e ir volum e of m ortgage lending
reached nearly $109,000,000, an increase
of 8 p er cent from May and 16 per cent
over June, 1942, Jam es Tw ohy, gover­
nor of th e F ederal Home Loan B ank
System , reported.
In th e first six m onths of th is year,
th e ir lending totaled $516,466,000, only
3 p er cent less th a n in th e like period
of 1942, b u t 21 p er cent below th e ag­
gregate of such in stitu tio n s for the
first half of 1941, before w ar conditions
had restricted th e ir outlets for m o rt­
gage funds.
The steady gain in lending by sav­
ings and loan associations in th e last
five m onths w as largely due to an
increase in loans to finance the p u r­
chase of homes.
G eographically, th e com parison w ith
th e 1942 loan volum e varied w idely
th ro u g h o u t th e country. The Los
Angeles F ederal Home Loan B ank dis­
trict, com prising California, A rizona
and N evada, rep o rted totals for th e
Jan u ary -Ju n e period 48 per cent ahead
of th e first half of 1942. N ext highest
gain—nearly 17 p er cent—w as in the
P ortland, Oregon, district, consisting
of n o rth w est and m ountain states.
At the o ther extrem e, lending by sav­
ings and loan associations in th e New
Y ork d istrict fell off 37 p er cent, w hile
th e Boston d istrict rep o rted a decline
of 19 per cent.

D es M oines, Iow a

MUNICIPAL BONDS
S p ecializin g in Iowa
County, City, S ch ool I s s u e s
and
M unicipal Utility R even u e I s s u e s
Ca

r l e t o x

13. B

e h

C

o

D es M oines Building
D es M oines, Iow a

Shaw, McDermott & Sparks
Investment- Securities

.

investment Bankers Field Day

Suitable for Investm ent of Banks,
Institutions a n d Trust Funds

914 Liberty Bldg.
DES

Phone 3-6119
MOINES,

n orthw estern Banker Septem ber 19^3


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

IOWA

The Towa In v estm en t B an kers A sso­
ciation w ill hold its annual Field Day
on W ednesday, Septem ber 8, 1943, at
the W akonda Country Club.
Golf m atches w ill start at 1:00 p. m.
and th ese w ill be follow ed by much
a ctiv ity on the “19th H ole,” after
w hich dinner w ill be served at 7:00
p. m.
The com m ittee in charge of the pro­
gram in clu d es V ic B eck er of Carleton
D. Bell Com pany, chairman; A rthur
K eyes and Sherm an F o w ler of the
Iow a-D es M oines N ational Bank and
T rust Company.

59

Mr. Farmer-1943 Model
The American farmer of
today produces two and
one-half times as much as
his grandfather of two gen­
erations ago. Today 23
per cent of our population
lives on farms and is sup­
plying food for the other
77 per cent, as well as our
allies. The American farm­
er is a power-house. And
to the banker goes much
of the credit for keeping
the farm wheels turning.
By Howard J . Gramich
Gen eral Agricultural Agent
Ch ic ago & North Western Railroad
Chic ago

days, it req u ires one h u n d red days of
sum m er conditions to produce a crop
of grain.
The b an k er know s th a t th e farm er,
in m any instances, w ill feed his crops
to livestock and, not infrequently, w ait
six to tw elve m onths before receiving

a cash re tu rn from th e products of his
fields.
The b an k er m u st be open-m inded in
helping th e farm er m eet changing con­
ditions. It is not his function to be
u ltra conservative although his advice
is usually given along sane and sound

THOMAS L. CRABBE
& COMPANY
Investment Securities

GREETINGS
to m em bers of the

Iow a Bankers A ssociation

M erchants B ank Bldg.

from

CEDAR RAPIDS, IOWA

M. Wittenstein & Co.

★

★

★

D ealers in

SE C U R IT IE S O F

Securities of

IO W A C O R PO R A T IO N S

Iow a Corporations an d

BOUGHT
E L IV E in a hectic time!
Change is about us on all sides.
U sually change im plies prog­
ress; u n fo rtu n ately , th is is not alw ays
tru e. W e can a d ju st ourselves to m eet
th a t type of change w hich tru ly re p re ­
sen ts advancem ent. C onfusion and
co n stern atio n beset us if changing con­
ditions are too radical.
Change certain ly co nfronts th e b a n k ­
er of today. It has p resen ted an ev er­
grow ing, serious problem to him d u r­
ing th e p ast decade. The ru ra l b an k er
is an in teg ral service u n it in th e com ­
m unity. He know s local conditions
and he know s people. He can sym pa­
thize and he can advise. His counsel
is sought and his advice is w ell re ­
ceived.
The b a n k e r th ro u g h o u t th e m id­
dle w est m ust, of necessity, have his
feet on th e g round and have a broad
u n d e rsta n d in g of agricu ltu re. F o r in ­
stance, he realizes th a t th e farm er in
dealing w ith M other N atu re has m any
factors w hich are beyond his control.
He know s th a t excess m o isture m ay
cause ru s t in g rain crops and th a t a
sh o rtag e of rain fall is bound to p ro ­
duce light yields of potatoes and o th er
crops. He also is aw are th a t w hile a
m a ste r sh ip b u ild er like K aiser m ay
produce an ocean-going vessel in ten

W


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

G en era l Investm ents.

SOLD
Q U O TED

Southern Surety Bldg.

Prom pt R eply to Inquiries

FHA

D es M oines, Iow a

T IT L E II L O A N S
■ B ■

Iow a Banks W elco m ed
A s O riginating Brokers
D ■ ■

Insured Loans P u rchased
At P revailin g Premium

G e n e ra l M o rtg a g e C o rp o ra tio n
An A pproved FHA M ortgagee

1021 Fleming Bldg., Des Moines, Iowa

Northwestern Banker September 1943

60
lines. W hen we th in k of th e changes
w hich have tak en place in th e agricul­
tu ra l field, we m arvel th a t a m an today

Municipal
Bonds
We specialize in
Iowa
and General Market
Municipal Securities
CORPORATION
PUBLIC UTILITY
BONDS
■ ■ ■

WHEELOCK & CUMMINS
In c o r p o r a te d
2 0 0 E q u itab le B ld g.
P h o n e 4 -7 1 5 9
D ES M O INES

has th e courage to offer bits of w is­
dom, even though he m ay be a banker.
In 1920 farm ers in th e Red R iver
Valley p u r c h a s e d tracto rs w hich
w eighed 22,000 pounds and possessed a
th irty horse-draw -bar power. In 1943
these farm ers purchase a tra c to r of th e
sam e draw -bar pow er b u t possessing
th e w eight of only 5,400 pounds, or
one-quarter of th a t of th e clum sy old
octopus w hich w as available in 1920.
T h in k of w h at science has done in this
instance.
Follow ing th e first w ar ban k ers w ere
som etim es accused of having encour­
aged in v estm en ts to too great a de­
gree. The sto ry of th e rap id advance
in land values, of th e boom w hich oc­
cu rred in all ag ricu ltu ral products and
of th e trem endous am ounts of m oney
w hich w ent w ith th e w ind, w ould be
b u t bringing back headaches. The
fever stru ck like magic. No one could
resist.
W hat are some of th e th ings w hich
m ight be criterions in helping us to
m eet the u n certain future? W e adm it
th a t our know ledge is b u t a torch
w hich lights th e w ay th ro u g h a sm oky
day only one step ahead. L e t’s analyze
th e p resen t and see if w e possess a
sufficient am ount of courage to m eet
th e confusion w hich we find all about
us. If so, we m u st avoid hysteria. We
m u st w alk and not run.
W e g ra n t th a t v irtu ally all th e
w ealth th ro u g h o u t th is area comes

Otnaáa à jk ô u d . ,,
of this

outstanding

hotel,

noted as the civic, social
and

travel

city.

center of the

There's far more to

enjoy but it is far from be­
ing expensive.

HOTEL

y

y

V/
V/
V/
V/

V/
V/
V/

V/
V/
V/
V/

V/

Northwestern Banker September 1943


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

Official A .A .A . hotel. Home
of the National Aeronautic
Assn. Headquarters of civic
clubs including: Rotary, Kiwanis,

Blue Goose, Lions,

Optimists, Ad-Sell, O m aha
Executives.

V/
V/
V/
V/
V/
V/

V

from th e soil. W ith this in m ind the
position of th e farm er is doubly im por­
tant. The cycle of a fa rm e r’s life is
p re tty w ell p o rtray ed in th e following
table of eight steps:
F irst: T he young m an in terested in
ag ricu ltu re sta rts as a hired hand.
Second: By saving, he eventually
re n ts a sm all farm and has sufficient
funds to m ake a dow n p aym ent on
necessary m achinery and equipm ent.
T hird: He eventually is able to p u r­
chase m ore m achinery and livestock.
He eventually re n ts a larger farm .
F o u rth : In a n um ber of years he
buys a sm all farm and carries a m o rt­
gage against it.
F ifth : T he m ortgage is paid off.
Sixth: A larg er farm w ith a m o rt­
gage is acquired.
Seventh: The m ortgage is paid off.
E ighth: As a land ow ner out of debt
he re tire s to th e city and th e process
sta rts over again.
F a rm e rs are, to a large extent, di­
vided into tw o classes, depending on
w hen th ey bought th e ir land. If th ey
bought on a risin g m arket, w hen farm
com m odities w ere selling well, th ey
prospered and w ere looked upon as
successful citizens. If th ey bought at
th e peak and soon th e re a fter entered
into a period of declining crop, live­
stock and land values, th ey not in fre­
qu en tly ended up w ithout p ro p erty
and th e com m unity classed them as
failures. In th e period of 1920 to 1922
m any m en had th is experience.
It w ould seem as though land values
at th is tim e w ere conservative. The
o p p o rtu n ity for a m an to procure a
farm and establish a hom e thereon
looks to be m ost encouraging. L and
values are conservative today com­
pared w ith com m odity prices. H ow ­
ever, should inflation set in th e p icture
m ight be changed.
The A m erican farm er of today is a
m an of w hom we can be ju stly proud.
He produces tw o and one-half tim es as
m uch as his g ran d fath er of tw o gener­
ations ago. At th e tim e of th e Civil
W ar ag ricu ltu ral production w as v ery
low. T here w ere no surpluses. More

MARSHALL CORNS
AND COMPANY
MANAGEMENT ENGINEERS
and
CONSULTANTS
to
BANKS AND BANKERS

V/

39 So. La Salle Street, C hicago

V/

C ost S y ste m s - A cco u n t A n a ly s is P ro ced u res
D irectors E x a m in a tio n s
M an agem en t Surveys

y

y
y

4

61

th a n one-half of th e population of th e
U nited States th e n lived on farm s. If
we go back to th e tim e of George W ash ­
ington we find th a t 97 p er cent of th e
citizens of th e U nited States lived on
farm s, and it took all of th e ir efforts
to produce food for th e o th er 3 per
cent. T oday 23 p er cent of our popu­
lation lives on farm s and is supplying
food for th e o th er 77 p e r cent, as w ell
as for o u r allies. Indeed, th e 1943
fa rm e r is a pow erhouse.
A g ricu ltu re is full of rom ance. The
accom plishm ents of a farm er are in ­
deed m ost enticing. He p lan ts seed in
th e soil and w ith in a few m o n th s h a r­
vests a crop. Not in fre q u e n tly a sm all
u n it of seed produces m any fold. Corn
is p erh ap s th e m ost o u tstan d in g ex­
am ple. An ear of corn possesses 800
k ern els w hich, w hen planted u n d er
satisfacto ry conditions, becom e 800
ears; an 80,000 per cent increase. The
original ear of corn could have been
ground and provided enough corn m eal
m u sh for one m a n ’s break fast. The
800 ears fed to hogs should produce
one h u n d re d pounds of pork, ap p ro x i­
m ately one y e a r’s supply for one p e r­
son u n d e r th e p re se n t ra tio n system .
W ho know s w h a t m ay be ahead?
W hy sh o u ld n ’t th e co u n try b an k er
re n d e r en couragem ent to his custom ­
ers? N inety-five y ears ago, w hen th e
Chicago and N orth W estern R ailw ay
w as established, th e re w ere no ra il­
roads in or out of Chicago. The east­
ern lines h ad term in als at New Buffalo,
M ichigan. The ow ners of these ra il­
roads h ad no confidence in Chicago;
yet, today, we find it has developed
into th e w o rld ’s leading railro ad te r ­
m inus. W h at w ould those m en w ho
failed to see tUo fu tu re of Chicago as
a railro ad cen ter th in k if th e y w ere to
come back and view th e situ atio n as
it now exists?
In keeping open-m inded and offering
w ise counsel th e b an k is u sin g com m on
sense. T here probably w as nev er a
b e tte r tim e for th e use of th a t c h a r­
acteristic th a n th e presen t. Common
sense and “horse sen se” are one and
th e sam e thing. If w e could b u t keep
th is before us and act accordingly, we
w ould probably find o u r custom ers
com ing to us w ith fullest confidence
and rely in g upon th e aid and advice
w hich w e are equipped to give them .
W e cannot get along w ith o u t th e
b an k and th e banker. W hen th in g s
have sq u ared aw ay le t’s hope the b ank
and its o p erato r w ill continue to fulfill
th e useful functio n w hich th e y have
ren d ered th ro u g h o u t th e y ears th a t
A m erica has grow n from a sw addling
in fa n t to th e leading n atio n in th e
world.

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

Rating C h a rt
M arshall Corns & Company, Chi­
cago, m anagem ent engineers and con­
su ltan ts to banks and bankers, have
in p rep aratio n a c h a rt w hich is de­
scribed as a “M anagem ent R ating
C hart for B anks.” It is m ost com pre­
hensive and w hen com pleted should
be of u n u su al service in helping banks
to establish fu n dam ental policies rela­
tive to th e m any phases of b ank opera­
tion. In its final form the ch art w ill
be m ade available to banks th ro u g h o u t
th e country.

W e C a n 't W in W alking
Increase in th e traffic load, both pas­
senger and freight, for the first half of
1943, has exceeded all th e advance
estim ates on w hich g overnm ent au ­
th o rities based allotm ents of m aterial
for new railroad equipm ent and for
m aintenance. H alf again m ore freig h t
service th a n in th e pre-w ar y ears has
been perform ed by A m erican railroads

d uring th e p ast 12 m onths, and passen­
ger volum e has been th ree tim es as
g reat as in any of th e 11 y ears preced­
ing 1941, according to Z. G. H opkins,
rep resen tin g w estern railw ays.
In spite of staggering rises in w a r­
tim e tran sp o rtatio n r e q u i r e m e n t s ,
th ere has been no m aterial increase in
th e supply of railroad equipm ent.
W ith the aid of th e co u n try ’s shippers,
a record has been m ade in getting
m axim um possible service out of all
available tra n sp o rta tio n facilities.
B ut th ere are lim its beyond w hich
shippers and th e railroads cannot go
w ith p resen t tools, how ever active and
unified th ey m ay be in cooperative and
patriotic effort. It m ust now be real­
ized th a t too little and too late can
stym ie A m erican shippers and rail­
road m en no less th a n arm ies. Ade­
quate additional equipm ent m u st be
m ade available if th e railroads are to
m aintain th e ir rem arkable w ar tra n s ­
po rtatio n service. We should rem em ­
b er th a t th is w ar is being fought on
w heels—we can ’t w in it w alking.

B ONDS
M u n i c i p a l
P u b l i c
l n d u s
R a i l

Ut i l i t y
l

r i a l

r oa

d

M u r d c >ch, D e a r t h & W h ite
In co rp o rated
1000 D es M oines Building
T elephone 4-2291

D es M oines, Iow a

T elety p e DM

91

P R I E S T E R & CO.
Eighth Floor Davenport Bank Building
DAVENPORT, IOW A

Listed and U nlisted Securities
WM. A. HUTTON. H. E. JACOBS, H. C. PRIESTER, H. M. SWEET

Northwestern Banker Septem ber 19b3

62

H E L P F U L S E R V I C E TO C O R R E S P O N D E N T S

Northwestern Banker Septem ber 19^3


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

63

W a se ca Bank O fficial Named
E. O. H erter, vice presid en t of th e
F irst N ational B ank of W aseca, M inne­
sota, w as elected to the presidency of
th a t in stitu tio n at a special m eeting
of th e board of directors.

M IN N E S O T A
NEW S
H. R. K U R TH
P r e s id e n t
H u tc h in s o n

Leaves for Alaska
A1 Roehlke, w ho has been assista n t
cash ier a t th e F irs t N ational Bank,
E lk R iver, M innesota, for several
years, left last m o n th for Skagw ay,
A laska, w h ere he will be em ployed in
th e B ank of Alaska.

G o es to St. Paul Bank
E ugene Sim m et, te lle r a t th e F a rm ­
ers & M erchants S tate B ank, New
Ulm, M innesota, has accepted a posi­
tion w ith th e St. A n th o n y P a rk State
Bank, St. Paul, and h as tak en up
his duties in his new position. Mr.
Sim m et had been em ployed a t th e
New Ulm B ank for th e p ast four years.
Miss L o rrain e H einen has been add­
ed to th e force at th e F. & M. State
Bank.

W IL L IA M D U N C A N , J r .
S e c r e ta r y
M in n e a p o lis

boxes, w hich th ey re n t to custom ers.
D uring th e p ast several m onths, it is
revealed, the dem and has been heavy
and several classes of boxes are now
unobtainable, all having been rented.
H ow ever, th ere are some sizes still not
rented, ban k officials say, b ut w ith the
p re sen t dem and these are expected to
go soon and th en safety deposit boxes
in th e several local banks w ill be “o u t”
for th e duration, unless a re n te r
m oves aw ay or finds he has no use for
his p resen t box.

Aitkin Banker Dies
R obert N. H asling, 46 y ears old,
cashier of th e F irs t N ational B ank at
A itkin, dropped dead early last m onth
as he en tered th e bank to s ta rt w ork.
H asling had been an em ploye of the
b an k m ore th an 23 years.

H e rte r succeeds C. P. Som m erstad
w ho is now aw aiting a rraig n m en t in
U nited States d istrict court on an
em bezzlem ent charge in connection
w ith discrepancies am ounting to m ore
th a n $70,000 in the b a n k ’s fund. Som­
m erstad, w ith a federal g rand ju ry
indictm ent against him , is cu rren tly
free un d er $10,000 bond.
F ra n k B. Sankovitz, M ankato, for­
m er national bank exam iner whose
audit show ed the big shortage in the
bank, w as elected by th e directors to
succeed H e rte r as vice president.
P urch ase of a large block of stock
in the bank form erly owned by Som­
m erstad by Otto B rem er, St. P aul
b an k er and businessm an, w as also an ­
nounced a t the m eeting.

New C ash ier at M arshall
A. M. L ystad of H endricks has re ­
cently accepted a position at th e
W estern State Bank, M arshall, M inne­
sota, as cashier, succeeding W. E. Eckh a rd t w ho has been em ployed in th a t
capacity for the past eight years. Mr.
E ek h ard t has accepted a sim ilar posi­
tion at W ood Lake.

Lewis A . Lien
Lew is A. Lien, 45 S. L exington
P ark w ay , St. Paul, M innesota, died re ­
cently w hile v isitin g his b ro th er, A. O.
Lien, in th e la tte r’s hom e in W illm ar.
D eath w as due to a h e a rt ailm ent.
Since 1928 he had been connected
w ith th e F ed eral L and B ank in St.
Paul.
He w as born in G reen Bay, W iscon­
sin, S eptem ber 12th, 1874, and as a
child m oved w ith his p a re n ts to Willm ar. He w as a flour salesm an in
Graceville, M innesota, and a fte r sev­
eral y ears he operated a g en eral store
and b an k at B arry, M innesota.
In 1906 he re tu rn e d to G raceville
and w as affiliated w ith th e Big Stone
County B ank and th e O’B rien L and
Company. L ater, w hen th e G race­
ville S tate B ank w as organized, he
w as an officer and la te r p resid en t of
th a t institution.

Safe Deposit Boxes S carce
A n e a r sell-out of safety deposit
boxes in b anks th ro u g h o u t th e U nited
States adds a new w artim e shortage
to th e list of “un-gettables.”
B anks in New Ulm, M innesota, are
g ettin g low on available safety deposit

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

Minnesota News Notes
By J. E. TYLER, Special R epresentative
E. C. ROSS, believed to be the
. oldest b an k er in M innesota, and
last y ear (1942) p resid en t of th e Pio­
n eer B ankers of M innesota, has been
confined to his bed for th e last several
w eeks. Mr. Ross, w ho w as 90 years
of age last December, has been tak in g
care of real estate loans for th e Blue
E a rth State Bank, Blue E a rth , M inne­
sota.

W

The Blue E a rth C learing H ouse
A ssociation held its an n u al m eeting at
M ankato, M i n n e s o t a , last m onth.
Am ong those atten d in g w ere H. R.
K urth, p resident M innesota B ankers
A ssociation, W m. D uncan, Jr., secre­
ta ry M innesota B ankers Association;
L ief Gilsaid, Ex. Mgr. 3rd W ar Loan
Drive, and a rep resen tativ e of th e In ­
te rn a l R evenue D epartm ent, w ho dis­
cussed th e new incom e tax laws and
estim ate reports.
Robert E. P ye, form er cashier of

th e F irs t State B ank of M edford, M in­
nesota, is now an ensign in the Navy,
stationed at H arv ard U niversity. E n ­
sign Pye w ill g radu ate from th is
special course on October 1.
Sgt. Dave Du B ois and Corp. G eorge
E. M iller, both stationed at Camp
Crowder, M issouri, have been v isitin g
the fo rm er’s father, B en Du B ois, sec­
re ta ry of th e Independent B ankers
A ssociation at Sauk Centre, M innesota.
Sgt. Du Bois is on leave of absence
from th e F irs t State B ank of Sauk
Centre, his title being th a t of a ssistan t
cashier.
N orm an Schroeder, bookkeeper of
th e Peoples N ational Bank, Long
Prairie, M innesota, and son of H. W .
Schroeder, cashier of th e bank, has
been inducted into the A rm y Medical
Corps, stationed at Camp B arkley,
Texas.

Northwestern Banker Septem ber 1943

64

•
J. B. Steffenson has been appointed
cashier of th e Citizens S tate B ank of
B arrett, M innesota, filling th e vacancy
caused by th e d eath of M. R. F u glie,
w ho passed aw ay in M arch of this
year.

The officers of th e F a rm e rs N ational
B ank of A lexandria, M innesota, are
doing th e ir b it in th e w ar effort.
R. AV. P utnam , p resid en t of th e bank,
is ch airm an of th e D ouglas C ounty
V ictory Bond D rive besides being on
th e com m ittee for th e $200,000 D ry

MINNESOTA

NEWS

Milk P la n t being b u ilt in A lexandria.
The building site w as fu rn ish ed by the
tow n and th e m oney w as fu rn ish ed by
th e R. F. C. The p lan t w ill be op­
erated by L and Of L akes Company.
Mr. P u tn am is also ch airm an of the
com m ittee for the new airp o rt being
co n structed by th e W ar D epartm ent,
w ho w ill operate it u n til the end of
th e w ar, at w hich tim e it is to be
tu rn e d over to the city of A lexandria.
T he cost of the airp o rt w ill be betw een
$600,000 and $700,000, com prising 535
acres w ith ru n w ay s capable of land­
ing any bom ber in operation today.

M ID L A N D N A T IO N A L B A N K
A N D TRU ST CO M PANY
of Minneapolis
S ta te m e n t o f C o n d itio n J u n e 3 0 , 1 9 4 3
D IR E C T O R S

RESOURCES
Cash and d u e fr o m b a n k s ---------$ 1 0 ,2 9 7 ,0 5 0 .6 4
U. S. g o v e r n ­
m en t s e c u r i ­
ties ________ $ 2 2 ,3 0 3 ,7 1 7 .3 6
O ther b on d s and
s e c u r itie s
2 ,2 6 5 ,8 5 0 .1 3
2 4 ,5 6 9 ,5 6 7 .4 9
8 ,2 7 1 ,4 3 1 .0 0
L oans and d is c o u n t s --------------8 8 .3 4 3 .5 2
In co m e ea rn ed b u t n o t co llected
6 1 ,0 9 1 .8 8
F u rn itu re an d fix tu r e s ------------$ 4 3 ,2 8 7 ,4 8 4 .5 3
LIABILITIES
D em an d and
time
d e ­
p o sits ______$ 3 6 ,5 2 7 ,3 2 7 .9 2
W ar L o a n de­
p osit a ccou n t 4 ,4 3 6 ,0 9 1 .1 8
,9 6 3 ,4 1 9 .1 0
R eserves fo r accru ed in terest,
1 0 3 ,6 5 2 .2 4
e x p e n se s and ta x e s ------------5 5 ,2 0 9 .8 4
In co m e c o lle cte d b u t n o t earn ed
C apital s t o c k - _ 1,000,000.00
7 5 0 .0 0 0 .0 0
S u rp lu s ______
U n d i v i d e d
7 3 ,9 8 4 .1 7
p rofits ____
R eserve
fo r
3 4 1 ,2 1 9 .1 8
c o n tin g e n c ie s
-----------------------2 ,1 6 5 ,2 0 3 .3 5
$ 4 3 ,2 8 7 ,4 8 4 .5 3
U. S. G o v e r n m e n t an d o th er se c u r itie s ca rried at
$ 1 2 ,0 8 5 ,6 0 8 .1 0 a r e p l e d g e d t o s e c u r e p u b l i c d e p o s i t s
an d tru st fu n d s and fo r o th er p u rp o ses, as req u ired
b y law .

N . C. BE IM
C hairm an o f th e B oard,
W . H . B arb er C om pan y
F R E D E R IC B. C A R R
P r esid en t and T rea su rer,
H a llet & C arey C om pany
G. L. H E E G A A R D
P r esid en t, M andan M e rca n tile Co.
W . C. H E L M
V ic e P r esid en t,
R u ssell-M iller Milling- C om pany
C H A R L E S B . JO R D A N
P r e sid e n t and M an ager,
Jord an S tev en s C om pany
E D G A R L. M A T T S O N
C hairm an o f th e B oard
B E N C. M cC A B E
P resid en t, M cCabe B ro th ers C om pany
P r esid en t, In te r n a tio n a l E lev a to r Co.
h . c l a y M cC a r t n e y
P r e sid e n t, T oro M a n u fa ctu rin g Co.

J. R. R A N D A L L
P r esid en t, R eserve S u p p ly C om pan y
ED W . A. SCH LAM PP
P r esid en t and T reasu rer,
P . S ch lam p p & S on, In c.
M A U R IC E S C H U M A C H E R
B u ild in g C ontractor
SAM U EL SEW A LL
T rea su rer, M in n ea p o lis Iron S tore
ARNULF UELAND
P r esid en t
P A U L E. V ON K U STER
P r esid en t,
D avid C. B ell I n v e stm e n t C om pany
J A M E S C. W Y M A N
V ic e P r esid en t,
S t. A n th o n y & D a k o ta E le v a to r Co.

O FFIC ER S
E D G A R L. M A T T S O N , C hairm an o f th e Board
A R N U L F U E L A N D , P r esid en t
V IC T O R W . M A S E R , A ss is ta n t C ash ier and
W . E V E R E T T B R O C K M A N , V ice P r esid en t
A s s is ta n t T ru st Officer
L A W R E N C E O. O L S O N , V ic e P r esid en t
^CLIFFO
R D C. SO M M ER, A ss is ta n t C ashier
R O B E R T S. S T E B B IN S , C ashier
E V E R E T T L. T H O M P S O N , A sst. T ru st Officer
W IL L IA M R . C H A P M A N , A ss is ta n t C ashier
H A R R Y M. W IL L M E R T , A s s is ta n t C ashier
E . W A L T E R E N G ST R O M , A ss is ta n t C ashier
F R A N K W . P E T E R S O N , C om ptroller
JA M E S A . G A L B R A IT H , A ss is ta n t C ashier
*On le a v e o f ab sence w ith U n ite d S ta te s A rm ed F o rces.

MEM BER

FEDERAL

Banker
Digitized Northwestern
for FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

D EPO SIT

Septem ber 19^3

INSURANCE

CORPORATION

•
A. C. Scheniderhan, vice president
and cashier of th e F arm ers N ational
Bank, is head air w arden of Douglas
County.

The boys from F ergus F a lls N ational
Bank, F erg u s Falls, M innesota, having
been helping in th e w ar effort by
going out evenings and helping local
farm ers shock th e ir grain.
Otter Tail County B ankers held a
d in n er and m eeting a t B attle Lake,
M innesota, early in A ugust to or­
ganize and plan for th e A ugust Bond
D rive now in progress.

W estern M innesota Clearing H ouse
A ssociation ( Bi g S t o n e , Douglas,
G rant, Page, Stevens, T rav erse Coun­
ties) held th e ir an n u al m eeting at the
new golf club house a t O rtonville,
M innesota, last m onth. Golf, bridge,
boating, sw im m ing, etc. w ere p a rt of
th e activities. Officers of th e Associa­
tion are O. T. H arrison, cashier, Clin­
ton S tate Bank, president; A. M. N el­
son, cashier, F irs t N ational Bank, E l­
bow Lake, vice president; and Stanford
R onning, cashier, U nion State Bank,
B row ns Valley, secretary and tre a s­
u rer.
E m er J. H anson, w ho has been both
state and national bank exam iner in
M innesota, is the new cashier a t th e
F arm ers & M erchants State B ank of
A ppleton, M innesota. Mr. H anson is
from M inneapolis.
A. E. A rntzen, form er cashier of
the bank, becam e p resid en t of the
in stitu tio n a t th e death of E. J. F letch ­
er. Mr. A rntzen has been associated
w ith T he F a rm e rs & M erchants State
B ank since July, 1933. D uring his
cashiership, b ank footings increased
from $115,000 in 1933 to $981,502.
Mrs. L ou ise P ederson, w ho w as con­
nected w ith th e b an k p rio r to h e r
m arriage, and despite th e fact th a t she
is th e m o th er of a year old daughter,
is now acting as a ssistan t cashier,
pinch-hitting for h e r husband, R obert
H. P ederson, w ho joined th e SeeBees
in Ja n u a ry of th is year.

Several form er K alm an and Com­
pany (M inneapolis) rep resen tativ es
now serving w ith th e A rm ed Forces
have been hom e on furlough recently.
Am ong these w ere Stan A by and K en
Scully, both in th e A rm y, and D uncan
B ow en, now in th e Navy.
Jam es K lingel, associated w ith K al­
m an and Com pany for th e p ast five
years, left last m o n th to serve w ith
th e M ilitary D ivision of the A m erican
Red Cross.

65

Tw in C ity N e w s

E V E R A L staff changes have been
effected by th e F ed eral R eserve
S
B ank of M inneapolis.

H. C. Timberlake, a fte r serv in g som e tim e w ith the

N o rth w est W ar F in an ce Com m ittee,
has re tu rn e d to his fo rm er post as
head of research and statistics. R. D.
Baker, w ho headed research an d sta ­
tistics in Mr. T im b erlak e’s absence,
has been m ade head of th e accounting
d ep artm en t, w hile Mark S ath er is
m oved from accounting to head of
tra n sit. A. W. Joh nson w as tra n s ­
ferred from tra n s it to head of th e
RFC d ep artm en t, w ith H. A. Bergland
going from RFC to head of fiscal
agency.
J. R aym ond Sm ith, co m ptroller of
N o rth w e ste rn N ational B ank, M inne­
apolis, has been elected a d irecto r of
th e T w in Cities Control of th e Con­
tro lle rs In stitu te of A m erica.
F. B. Durand, m an ag er of th e credit
d ep artm en t, F irs t Service C orporation,
M inneapolis, has been appointed asso­
ciate councilm an of th e A m erican I n ­
stitu te of B anking for so u th e rn M inne­
sota. A p pointm ent w as m ade by D avid
L. Colby, St. Louis, AIB president.

D irectors of F irst Bank Stock Cor­
poration, m eeting in M inneapolis, A ug­
u st 16th, declared a dividend of 30
cents a sh are on th e stock, payable
O ctober 1st to stockholders of record
at th e close of business Septem ber
15th. T his is th e second 30-cent divi­
dend paid th is y ear and th e th irty sev en th consecutive dividend paid by
th e b an k holding com pany.
C hester E ggen has been elected as­
sista n t cashier of M arquette N ational
B ank. He has been a ssista n t cashier
a t Chicago-Lake S tate B ank since June,
1940, and p rio r to th a t w as associated

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

By Jam es M. Sutherland
Sp ecia l C orre s p on d e n t

w ith U niversity N ational B ank and
o th er banks in th e state.
Two te st suits to determ ine th e v al­
idity of th e “abandoned b ank deposits
a c t” passed by th e last M innesota leg­
islatu re have been sta rte d in R am sey
county d istrict court, St. Paul, by A t­
to rn ey G eneral J. A. A. B urnquist.
The a tto rn ey general said he w anted
to determ ine validity of th e law before
sta rtin g actions to recover deposits in ­
volved. E stim ates place such deposits
a t an yw here from $250,000 to $5,000,000. Several thousand deposit accounts
are involved.
D efendant in th e te st suits is N orth­
w estern N ational Bank of M inneapolis.
In order to avoid necessity of bringing
te st cases against all n ational banks,
B u rn q u ist said, th e banks agreed to
choose one by lot to act as defendant
in th e friendly suits.
T he “abandoned bank deposits ac t”
provides th a t all deposits in state and
national banks and o ther financial in ­
stitu tio n s w hich have been abandoned
by depositors, shall become th e prop­
e rty of th e state. D eposits w hich have
been inactive 20 y ears are presum ed to
be abandoned. C laim ants have an ­
o th er 10 y ears in w hich to seek th e
funds from th e state, eith er by suit

B A N K FOR SALE!
Controlling interest in a Minnesota
state bank located in a good section
near Twin Cities. Capital funds about
$65,000.00.
Total resources around
$500,000.00. Control available at less
than book value. File No. B.614.

or by petition to th e state executive
council.
The banks, B u rn q u ist explained,
asked th a t th e c u rre n t action be
bro u g h t to p rotect th e legal rig h ts of
th e ir depositors w hose w hereabouts
are unknow n, and to p rotect the banks
them selves from possible claim s by
depositors w ho m ight appear later and
charge th e law w as invalid.
A rthur R. U pgren, vice president
and econom ist of th e F ederal R eserve
B ank of M inneapolis, w as one of the

Municipal Bonds
Corporation
Bonds and Stocks
•
W e shall be glad to fu rn ish
statistical rep orts on request

•

KALMAN &
COMPANY
E n d ieott B u ild in g
St. P aul
M cK n igh t B u ild in g
M in n eap olis

W. R. Olson Company, Fergus Falls, Minn.

Northwestern Banker September 1943

66
•

M I N N E S O T A

N E W S

tro p h y for th e o u tstanding basket, re ­
ceiving it directly from th e tro p h y 's
donor, Theodore W old, ch airm an of
th e board of N o rth w estern N ational.

speakers at th e conference of d irectors
and officers of five m idw estern F ed eral
R eserve B anks in Chicago. P urpose
w as to discuss v aried w orld m on etary
stabilization proposals.

Seventy-first A nniversary
It w as 71 y ears ago Ju ly 25, 1943,
th a t th e F irst N ational B ank of F erg u s
F alls w as organized. It w as th e first
national ban k to be organized betw een
th e T w in Cities and th e Pacific Coast.
It w as started as the F irs t N ational
B ank and d u ring th is long period it
has not changed its form in any way.

N orthw estern N ational Bank lobby

last m o n th w as again th e scene of th e
an n u al show of th e M innesota Gladio­
lus A ssociation—and p ro p erly enough
th e sw eepstakes w in n er w as a b anker,
Carl H. Som m er, p resid en t and cashier
of th e State B ank of R ush City, M inne­
sota. He also took th e T heodore W old

H arris Trust and Savings Bank
O rg a n iz e d as

N. W.

H a rris

&

C o. 1882 - I n c o r p o r a t e d 1907

H A R R IS T R U S T B U IL D IN G , C H IC A G O

S ta te m e n t o f C o n d itio n
J u n e 30, 1943

Cash on H and and D ue F rom B a n k s ........................
U. S. T reasu ry Bills and C ertificates - - - - U. S. G overnm ent B onds and N otes
- - - S tate and M unicipal Securities - - - - - - O th er B onds and Securities - - - - L oans and D iscounts - - - - .............................
F ederal R eserve B ank S to c k .........................................
C ustom ers’ L iability on A cceptances and
L etters of C r e d i t .............................................. .....
A ccrued In te re st and O th er R esources - - - -

$103,680,055.34
82,801,079.95
87,939,865.91
39,469,904.46
45,307,956.86
84,365,366.42
450,000.00

T o t a l ...................................

$445,597,445.05

65,224.81
1,517,991.30

L ia b ilitie s

T o tal

- - - - - - -

$ 19,806,484.20
7,429,714.39
65,224.81
418,296,021.65
$445,597,445.05

$42,114,800 o f U . S. G o v e rn m e n t o b li g a ti o n s a n d $301,000 o f S ta t e a n d M u n ic i­
p a l S e c u r i tie s a re p le d g e d to s e c u re $27,577,459.49 o f U n ite d S ta t e s G o v e r n m e n t
D e p o s its a n d $11,172,170.40 of T r u s t D e p o s its , a n d to q u a l if y f o r fid u c ia r y p o w e rs .
M e m b e r of 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 i o n

--------------------- ------ S H Y

WAR

Northwestern Banker September 1943


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

r

own«;

P resen t officers are:
E lm er E. Adams, president.
Sam uel P. Adams, vice president.
H.
E. Swenson, vice president and
a ssistan t cashier.
R. E. Lincoln, cashier.
Jo h n J. Svenneby, a ssistan t cashier.
E lm er Froelich, teller.
P hyllis A. Nelson, ladies teller.
D uring th e 71 y ears th e b ank has
had b u t th ree presidents, H en ry G.
Page, Charles D. W rig h t and E lm er E.
Adams. It has had b u t th ree cashiers,
Jam es Compton, from 1872 to 1883,
E. A. Jew ett from 1883 to 1931, and
Robb E. Lincoln since th a t tim e.

Takes Bank Position
In Minneapolis
F.
E. Rolloff, form er N ew Ulm m an
w ho has been m anager of th e H arris,
Iowa, b ran ch office of th e Sibley State
B ank of Sibley, Iowa, for th e past
th ree years, has accepted a position as
teller of th e Cam den P a rk State B ank
in M inneapolis.

C iv ic Leader Dies

R esources

C apital
6,000,000.00
S u r p l u s ............................. _ _ _
9,000,000.00
U ndivided P rofits
- - - - 4,806,484.20
R eserves for T axes, In terest, C ontingencies, E tc. A cceptances and L e tte rs of C redit - - - - - D em and D eposits
- - - - $393,489,166.54
T im e D eposits - - - - - - 24,806,855.11

•

Lyle A. H am lin, 61 y ears old, Spring
Valley (M innesota) attorney, b anker
and civic leader, died in R ochester
early in A ugust after a long illness.
A grad u ate of the U n iversity of M inne­
sota, he w as p resid en t of th e F irs t
N ational B ank 30 y ears and had served
on th e school and lib ra ry boards.

Assistant C ash ier Resigns
J. T. H eaney, w ho has been serving
as a ssistan t cashier of th e K anabec
S tate Bank, Mora, M innesota, has re ­
signed his position and m oved w ith his
fam ily to M ankato.

A rrow head Assn. M eets
More th a n 75 bankers, m em bers of
th e A rrow head Clearing House, em ­
bracing th e R ange and D uluth area,
attended th e b anking conference at
th e A ndroy H otel in H ibbing, M inne­
sota, recently.
D iscussion of recen tly enacted b an k ­
ing law s in th e state, th e w ithholding
tax th a t banks are han dling for the
federal governm ent, and plans for th e
forthcom ing bond sale cam paign in
Septem ber held th e atten tio n of the
m em bers.
E lected presid en t w as F red P o tter
of V irginia, H. Olson of Cloquet was
nam ed vice presid en t and M. Gray of
D uluth, secretary -treasu rer. The m em ­
bers played golf, enjoyed a cocktail
h o u r and a d in n er in th e evening, fol­
lowed by e n te rta in m e n t at the A ndroy
Hotel.

67

•
P re se n t from E v eleth w ere J. R.
S chuknecht, G. A. W h itm an, Grove
Gable, R. M. Cornw ell and A rt Naslund. S chuk n ech t w as w in n e r of th e
low n et prize in th e golf tourney.

MINN ESOT A N E W S *
statem en t of condition of th e five m em ­
ber banks of th e D uluth Clearing
H ouse Association.

th e office of the state tax com m issioner
a t St. Paul, w ill become cashier of the
in stitution. The new ow ners plan to
convert from a national to a state hank
and w ill apply for a ch arter in the
n e a r future.

The city ’s “dow ntow n” banks re ­
ported th e ir deposits at th e end of th e
six-m onth period am ounted to $95,104,637, a jum p to an o th er all-tim e high
in the h isto ry of D uluth banking. The
figure last D ecem ber 31st w as $93,456,618.

Resigns as C ash ier
Ben W hitney, w ho has been em ­
ployed a t th e P rin ceto n (M innesota)
S tate B ank for 15 years, has resigned
to accept a position as head bookkeep­
er in th e O. J. O degard office in P rin c e ­
ton.
Mr. W h itn ey h as been a ssista n t
cashier a t th e b an k for 14 y ears and
for th e p ast year, cashier.

Duluth News
A RTIM E influences on banking
W
business a t th e H ead of the Lakes
continued to be reflected in tra n sa c ­

C ontinuing a sh rin k in g trend, u n d er
w ay since P earl H arbor, com m ercial
loans of the five banks on Ju n e 30th
am ounted to $14,452,255, w hich com-

tions covering th e first six m onths of
1943, it w as disclosed in th e Ju n e 30th

New C ash ier at Rice
H en ry J. K oester of Sw anville,
M innesota, has accepted th e cashiership of th e S tate B ank of Rice, and en ­
tered upon his d uties last m onth.

New Assistant at Fulda
W illiam K an k erlik h as resigned his
position a t th e N ational Citizens Bank,
Canby, M innesota, and is now assist­
a n t cash ier of th e C itizens State
B ank of Fulda.

Com plete Deal for
Purchase of Bank
W alter Johnson, cashier, and Jo h n
T. Asiala, vice p resid en t of Red L ake
C ounty State B ank, Red Lake, M inne­
sota, com pleted a deal for th e p u r­
chase of four-fifths of th e stock of th e
F irs t N ational B ank of T w in Valley,
M innesota. Jacob L. P ete of E ly and
A. W. H avela of D u lu th w ill be asso­
ciated w ith th em in th e enterp rise.
Jo h n E. D raeger, w ho h as been in

Livestock Loans
A n y type of loan that h a s a direct bearing on the war

J

effort receiv es prompt, careful attention at the Stock Yards

a m ie s o n

N ational Bank,

w inning the w ar and banks located in territory w here

&

C

Members
S:

livestock is a factor can m ake v a lu a b le u se of our facilities

o m p a n y

N ew York Stock E xchange
and Other Principal Exchanges

★

STOCKS
BONDS
COMMODITIES
★
MINNEAPOLIS
FARGO
ST. PAUL
GRAND FORKS
DULUTH
SIOUX FALLS
PRIVATE WIRES

Livestock w ill p la y an important part in

in taking care of their customers' reguirem ents.
,

There are m an y w a y s in w hich an account with us will
im prove the service to your custom ers in handling their
livestock transactions.

Stock Yards National Bank
of

S o u th S t. P a u l, M in n e s o ta
Member Federal D eposit Insurance Corporation

—

Northwestern Banker September 19^3

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

68

•MINN ESOTA
pared w ith $17,023,404 last D ecem ber
31st.
Loans and discounts on th e books of
th e individual b an k s as of Ju n e 30th
w ere th ese (w ith D ecem ber 31st fig­
ures in p aren th eses):
F irst and A m erican N ational, $7,852,295 ($9,286,341); N orthern N ational,
$2,954,421 ($3,426,232); City N ational,
$1,925,906 ($2,277,604); M innesota N a­
tional, $929,843 ($1,077,922); D uluth
N ational, $789,788 ($955,303).
The con cen tratio n of business on th e
w ar effort and th e circum stance of
priorities, ratio n in g and o th er neces­

NEWS*

sary restrictio n s on peacetim e opera­
tions is chiefly th e reason for the
sh rin k age in com m ercial loans carried
by D uluth banks, spokesm en for the
ban k in g houses said.
T hey noted th a t D uluth loans stood
a t $12,400,000 at the end of 1938, rose
to $13,900,000 by th e end of 1939,
am ounted to $17,300,000 at th e close of
1940, to taled $21,400,000 at th e end of
1941, th en dropped off to $17,023,404 at
th e end of 1942.
Clarence A. E rickson , general su p er­
in te n d e n t of In terlak e Iro n C orpora­

IN LINE OF DUTY
There is no Arm y or N a v y "E" for the
livestock producer.
C. L . F R E D R I C K S E N
P re s id e n t

The G overnm ent h as

ca lled for an in crease of three billion
pou n d s of m eat this year— the greatest

M . A. W IL S O N
V ic e P r e s i d e n t

total in a ll history— and livestock m en s a y

W . G. N E L S O N
A s s i s t a n t V ic e P r e s i d e n t

they'll produce their quota just in line of
duty!

W . C. S C H E N K
C a s h ie r

Thanks to hundreds of cap ab le bankers

H . C. L I N D U S K I
A s s i s t a n t C a s h ie r

in the northw est — m an y

C. L . A D A M S
A s s i s t a n t C a s h ie r

of them

correspondents— there is no shortage of
F inancial A ssista n ce for livestock produc­

J . S. H A V E R
A s s i s t a n t C a s h ie r

tion and p rocessin g. W e are proud of our

JA M E S L. S M IT H
A u d ito r

ow n part in this task— and w e point with
pride to the correspondent service
render these banks.

★

:

★

★

LIVE STOCK

.

N

a t i o n a l

--■'j , W' T

O F

5 / O L / X

B

C i T Y ,

a

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

Northwestern Banker September 19^3

n

we

A.
R einhold M elander, D uluth arch i­
tect and a director of B ank of Com­
m erce & Savings of D uluth, w as ap­
pointed d istrict m anager of the n o rth ­
eastern M innesota office of Sm aller
W ar P lan ts C orporation. T he d istrict
covers 13 counties in n o rth eastern
M innesota, including th e Iron Range,
Bem idji, B rainerd and In tern atio n al
Falls. He took over th e new post
sho rtly after his re tu rn from M ontana,
w here he perform ed a rch itectu ral en­
gineering service for th e federal gov­
ern m en t on a large airfield project.
L ew is G. Castle, executive vice p resi­
dent of N o rth ern N ational B ank of
D uluth, has accepted th e vice ch air­
m anship of th e D uluth Commitee for
Econom ic Developm ent. The body is
headed by Seth M arshall, p resident of
M arshall-W ells Company, N orthw est
w holesale h ard w are firm, w ith head­
q u arters in D uluth. W illis D. W yard,
p resident of F irs t and A m erican N a­
tional Bank, is a m em ber of th e com­
m itte e ’s advisory group.

C a n ce ls

1943 Convention

R ichard H. Stout, p resid en t of the
M orris P lan B ankers Association, an ­
nounced th a t th e an n u al M orris P lan
convention, w hich had been scheduled
for th is fall, has been postponed. The
postponem ent w as m ade by the execu­
tive com m ittee in deference to the
Office of D efense T ran sportation, w hich
has requested th a t w h enever possible
business conventions be canceled this
y ear to ease th e load on tran sp o rtatio n
and hotel facilities. If a m eeting is
not held by nex t M arch, th e executive
com m ittee w ill m eet in th e spring to
discuss th e 1944 convention situation,
Mr. Stout said.

To A dd ress A .B .A . Meeting

k

M OW Æ

^A e BanJc aé the Zjct


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

our

tion at D uluth, w as elected a director
of W estern N ational B ank in W est
D uluth, to succeed th e late H arold G.
Glenn, w ho died last March. Em ployed
by In terlak e Iro n for 23 years, Mr.
E rickson succeeded Mr. Glenn as su­
p erin ten d en t of th e D uluth plant. He
saw service in th e Argonne-M euse area
w ith th e arm y engineering corps in
W orld W ar I.

Sydney G. Dobson, vice president
and general m anager of the Royal
B ank of Canada, w ill address th e W ar
Service M eeting to be held by the
A m erican B ankers A ssociation in New
York City, Septem ber 13th-15th, it is
announced a t A.B.A. h ead q u arters
here.

69
“Mr. E b erle’s life-long experience
w ith ag ricu ltu ral problem s and in ti­
m ate know ledge of ag ricu ltu ral condi­
tions in South D akota w ill be a m ajor
asset to th e board,” W atson said. “We
feel th a t our postw ar planning w ill
have to be in teg rated w ith ag ricu ltu ral
developm ent, and no one is b e tte r
qualified th a n Mr. E berle to do th a t
job.”
N orthw est Security b ran ch banks

SOUTH
D A K O T A
NEW S
T. N. H A Y T E R
P r e s id e n t
S io u x F a lls

A c tin g S e c r e ta r y
M IL D R E D S T A R R IN G

G E O R G E M . S T A R R IN G
S e c r e ta r y - T r e a s u r e r
H u ro n
( I n th e S e r v i c e )

Form er Banker in Alaska

Banks to Liquidate

R. M. (Dick) D ePuy, form erly m an a­
ger of th e N o rth w est S ecurity N ational
B ank in B rookings, South Dakota,
w rites from H aines, Alaska, to re p o rt
th a t th e A laskan days alread y are p e r­
ceptibly sh o rter.
“W e can notice th e sh o rten in g of
th e days, and w hile th is sum m er we
have n ev er had a com plete lack of
light d u rin g th e night, it w on’t be long
u n til we get dow n to tw o or th re e
h o u rs of light a day. T h a t w ill be an
experience th a t w o n ’t be fo rg o tten .”
Mr. D ePuy, now w ith a co nstruction
com pany, re p o rts th a t he has been
ex trem ely busy, and th a t his son, W il­
liam, w ho w as g rad u ated from State
College in 1941, now has becom e a cap­
ta in in th e arm y.

T ru stees of Ja v a ’s (South D akota)
two closed banks have tak en steps to
dispose of th e holdings of the two
in stitu tio n s recently and hope to com­
plete th e liquidation of the assets of
the corporations by the end of this
year.
The board of tru stees of th e F irst
S tate B ank started action some tim e
ago to com plete the liquidation of th a t
ban king corporation. A h earin g w as
held at Selby w hen the judge g ran ted
an order au thorizing th e board to sell
th e real estate belonging to the
corporation.
The board of tru stees of th e A m eri­
can State B ank held a m eeting, at
w hich tim e it w as decided to take
steps to dispose of the holdings of th a t
closed corporation and com plete the
liquidation some tim e th is fall.

H . B. Dowdell
H a rry B. Dowdell, fo rm er M itchell,
South D akota, resident, died last
m o n th in a M itchell hospital.
B orn in S anborn C ounty in 1885,
Mr. Dowdell w as in th e new sp ap er
and b an k in g b u siness th e re u n til 1926,
w hen he cam e to M itchell. He w as at
one tim e county tre a s u re r of Sanborn
C ounty and la te r cashier of th e Cuthb e rt State B ank. He w as fo rm erly in
th e F irs t T ru st and Savings B ank in
M itchell as an ex am in er for th e state
b an k in g d e p a rtm e n t and w en t to
P ie rre in 1934, as dep u ty su p e rin te n d ­
en t of banks. Since M arch of 1937
he has been liq u id ato r for th e F ed eral
D eposit In su ran ce C orporation a t
A berdeen, Ipsw ich and W hitew ood.

Directors M eet
T he directors of th e B ank of K im ­
ball, South D akota, held th e ir sem i­
an n u al m eeting last m onth. Lloyd
C ronholm and Mrs. Alice Beebe of
Ipsw ich, L. M. L arsen of W essington
Springs, Mrs. J. H. D rips of G ann Val­
ley, and R. A. Jo h n so n w ere in a tte n d ­
ance at the m eeting.
G eneral business w as discussed and
th e exchange b an k w as also checked
a t P u k w an a by L. M. L arsen and
Lloyd Cronholm,

Madison Bank
Changes Hands
A. D. P ark er, presid en t of Security
B ank & T ru st Company, Madison,
South Dakota, and Jo h n E ngebretson,
p resid en t of K enneth State Bank,
K enneth, M innesota, have sold th e ir
stock in th e M adison b ank to W alter
M. W illy and associates. Mr. W illy has
been elected presid en t to succeed Mr.
P ark er, b u t Mr. P a rk e r continues as a
director.
Mr. P a rk e r w as one of th e organizers
of the bank and its largest stockholder.
The Security B ank & T ru st Com­
p any of M adison has $50,000 capital,
$50,000 surplus, and deposits of $1,800,000. The sale w as negotiated by
C harles E. W alters Company, Omaha.

A. M . E B E R L E
O n B o a r d o f D ir e c to r s

are located a t Brookings, Chamberlain, Dell Rapids, Gregory, H u ro n
and Madison.
Supervision of 4-H Club A chieve­
m en t Days in M innehaha County, held
this y ear in place of th e ann u al Sioux
E m pire Fair, fell largely on the shoul­
ders of F rank J. Cinkle, cashier of the
N ational B ank of South Dakota.
Cinkle is tre a su re r, a m em ber of the
board of directors and a m em ber of
th e executive com m ittee of th e Sioux
E m pire F a ir A ssociation. P lans for
th e usual elaborate fair w ere cancelled
th is year because of w ar conditions,
b u t achievem ent days for farm young­
sters w ere held on A ugust 30 and 31.

P relim in ary arran g em en ts for the
T hird W ar Loan Cam paign in Septem ­
b er found A. F. Larson, p resident of
th e L arson H ardw are Com pany and a
d irector of th e N orthw est Security
N ational Bank, nam ed as co-chairm an
of the Sioux Falls drive. W orking w ith
L arson is Jay B. A llen, vice president
M. E B E R L E , dean of th e college
and tre a su re r of M cK inney and Allen,
. of ag ricu ltu re at South D akota Inc.
State College, Brookings, has been
C oordinator of Region I, including
elected to th e board of directors of th e
N o rthw est Security N ational Bank, it eight counties in so u th eastern South
w as announced by R. M. W ATSON, Dakota, is P. H. McDoAvell, vice p resi­
dent and tru s t officer of N orthw est Sepresident.

Sioux Falls News

A

Northwestern Banker September 19'i3

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

70

•

SOUTH

DAKOTA

NEWS

curity. C. A. C hristopherson, p resid en t
of th e U nion Savings B ank, is execu­
tive m anager of th e S tate W ar F inance
Comm ittee.
McDowell pledged th e full su p p o rt
and cooperation of all Sioux F alls
ban k ers in th e drive, and th e local
ban k ers com m ittee has been m eeting
alm ost daily as p rep aratio n s for th e
cam paign are com pleted.

Tom S. H arkison, vice presid en t of
th e N ational B ank of South Dakota,
w as nam ed by the Sioux Falls K iw anis
Club as a delegate to a tten d a re ­
gional K iw anis convention at A lexan­
dria, M innesota, held A ugust 21st.

The state w ar finance com m ittee in
South D akota is headed by W alter H.
Burke, Pierre, cashier of th e P ierre
N ational Bank, w ith th e vice ch air­

McDowell, in his capacity of ch air­
m an of th e civilian advisory com m it­
tee for naval officer pro cu rem en t in
South Dakota, w as p rim arily re ­

m a n ’s position held by A. W . P ow ell,
Sisseton, vice p resid en t and cashier
of th e R oberts County N ational Bank.

ST A T E M E N T O F C O N D IT IO N

N O R TH W EST SECURITY
N A TIO N A L BANK
of Sioux Falls, South Dakota
“South Dakota s Leading B an k”
June 30, 1943
RESO U RCES
C a s h on H a n d , in F e d e r a l R e s e rv e B a n k , a n d
D u e fro m B a n k s a n d B a n k e r s ................................................................... $ 6,684,545.53
U . S. G o v e rn m e n t O b l i g a t i o n s ........................................................................ 12,474,145.53
S ta te a n d M u n ic ip a l B o n d s ...............................................................................
732,542.23
O th e r B o n d s a n d S e c u r i t i e s ..................
409,201.92

S to c k in F e d e r a l R e s e rv e B a n k in M i n n e a p o l i s ...............................................................
O v e r d r a f ts .........................................................................
L o a n s a n d D i s c o u n t s ...........................................................................................................................
B a n k in g H o u s e s , F u r n itu r e a n d F i x t u r e s ...............................................................................
Includes Ranking Houses a t Sioux F alls, Brookings, Cham berlain
Dell Rapids. Gregory. H uron and Madison, all clear of encumbrance.
I n t e r e s t E a r n e d b u t n o t C o ll e c t e d .............................................................................................
T O T A L .........................................................................................................................................

$20,300,435.21
30,000.00
4,456.84
3,247,506.83
331,675.67
76,326.56
$23,990,401.11

*

sponsible for excellent resu lts obtained
d u ring a week-long drive in August.
More th a n 300 candidates w ere in ­
terview ed at h ead q u arters in Sioux
F alls by navy officers, w ith 30 accepted
for com m issions, b ringin g to 107 the
num ber of naval officers recruited
th ro u g h M cDowell’s com m ittee.
W. E. Perrenoud, cashier of the F irst
N ational B ank and T ru st Company,
was one of th e “old-tim ers” of the
Sioux F alls Izaak W alton League chap­
te r honored at a special m eeting A ug­
u st 16th. Men honored have been ac­
tive in th e ch ap ter since it w as organ­
ized in Jan u ary , 1925.

One of th e m ost pleasant vacations
rep o rted w as enjoyed by B. C. Grangaard, assistan t cashier of the N ational
B ank of South Dakota. G rangaard
spent a w eek on a ran ch owned by
C ornelius Clark, vice p resid en t of the
F arm ers State B ank at W inner, w hich
is located n o rth of K ennebec on a bend
of th e M issouri River.
One of the sponsors of a clothing for
R ussia cam paign, scheduled for midSeptem ber in South Dakota, is Ralph
M. W atson, p resid en t of th e N orthw est
Security N ational Bank. The cam paign
is headed by W illiam C. Rem pfer,
Parkston, cashier of the F irs t N ational
B ank there, and form er president of
the South D akota B ankers Association.
T re a su re r of th e cam paign is H. R.
Kibbie, Jr., M itchell, vice president of
the Com m ercial T ru st & Savings Bank.
To John O. Barton, vice president of
the N orthw est Security N ational Bank,
w ent second place honors in a golf
to u rn am en t held in connection w ith
th e an n u al E l Riacl Shrine picnic in
Sioux Falls.

L IA B IL IT IE S
C a p i ta l S to c k — C o m m o n .................................................................................... $
S u r p lu s
........................................................................................................................
U n d iv id e d P ro fits a n d R e s e r v e s ......................................................................

500,000.00
500,000.00
242,057.29

R e s e rv e fo r I n t e r e s t , T a x e s , a n d O th e r E x p e n s e s ..........................................................
I n t e r e s t C o lle c te d b u t N o t E a r n e d ..........................................................................................
D e p o s its .....................................................................................

$ 1,242,057.29
78,484.54
8,012.93
22,661,846.35

T O T A L ........................................................................................................................................

$23,990,401.11

BRANCHES AT

BROOKINGS, CHAM BERLAIN, D ELL R A PID S,
GREGORY, HURON, MADISON
T E C H N IC A L

O F F IC E A T
S C H O O L , A R M Y A IR F O R C E S
S io u x F a ll s , S. D .

F R E D H . H O L L IS T E R
C h a ir m a n

T R A IN IN G

R A L PH M. W ATSON
P re s id e n t

U nited S ta te s D epositary
M e m b e r F ed e ra l D e p o s it Insurance Corporation

Northwestern Banker September 1943

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

COMM AND

Ju ly bank debits in Sioux Falls, as
rep orted by th e F ederal R eserve B ank
in M inneapolis, show ed a gain of $2,556,000 over th e sam e m onth a year
ago, to a total of $40,684,000.
B ank clearings declined, how ever,
for th e first tim e th is year. Clearings
of $14,780,813.25 for Ju ly com pared
w ith $15,119,641.28 for July, 1942, a
drop of 2.2 per cent.
P rim ary reason for the decline given
by ban k ers w as th e fact th a t last
y e a r’s m ark w as abnorm ally high, due
to huge expenditures for construction
of an arm y technical school here.
“T he exchange of m oney rep resen ted
in th e clearings th is y ear is of a m uch
sounder n a tu re ,” one b an k er said. “It
is a reflection of a high level of ag ri­
cultu ral prosperity, ra th e r th an of ab­
norm al w ar co n struction.”

71
H. C. Bow ers of Regent, cashier of the
F arm ers S tate Bank, for a three-year
term .

NORTH

M ade Depository

D A K O T A
NEW S
H . A. F IS C H E R
P r e s id e n t
W a sh b u rn

Enters U. S. N avy
H arlan M. E rickson, cashier of th e
F irs t N ational B ank, V alley City,
N o rth Dakota, and affiliated w ith th a t
in stitu tio n for th e p ast tw o years, has
been com m issioned an ensign in th e
U. S. Navy, leaving recen tly for an
assig n m en t in the naval p ay m aster
departm en t.
Mr. E ric k so n ’s successor is H a rry
L undholm of M inneapolis. He joined
th e F irs t N ational organization in
M inneapolis in 1930 and in 1933 w as
sen t to G rand F o rk s w h ere he spent
n early a y e a r before being assigned
to th e F irs t N ational a t G ettysburg,
South Dakota. He w as nam ed cashier
of th e Lidgerw ood, N o rth D akota,
B ank in 1935 and in 1939 w as tra n s ­
ferred to Jam estow n. Since leaving
Jam esto w n in th e fall of 1940, he has
been in th e auditin g and cred it de­
p artm e n ts of th e F irs t B ankstock Cor­
poration in M inneapolis.

Bank Service Exchange
O. H. Svare, a pioneer resid en t of
G renora, N o rth D akota, announces
th a t he has obtained a license from th e
state ban k in g d ep artm en t, B ism arck,
for th e operation of a licensed and
bonded exchange in the city of G re­
nora.
A ccording to Mr. Svare th e ex­
change w ill be conduced on g eneral
b an k in g principles; such as, cashing
of checks, th e receiving of deposits
for tra n sm itta l to b an k s and th e
issuance of d rafts. In connection w ith
th e exchange Mr. Svare w ill also ru n
a general in su ran ce agency.

Form er Bank
Examiner Dies
F u n e ra l services w ere held recen tly
for M att M cCarthy, fo rm er state b ank
exam iner, w ho passed aw ay a t th e
county h ospital in L arim ore, N o rth
Dakota, w here he had been an inm ate
since 1939.
Mr. M cC arthy w as born n e a r Chatfield, M innesota, in 1866, and at the
tim e of his d eath w as 77 y ears of age.

0 . C. W A T T A M
S e c r e ta r y
F a rg o

He w as cashier of the b ank a t York,
N orth Dakota, and D unseith, N orth
Dakota. He served w ith th e B ank
of N orth D akota at B ism arck as state
b an k exam iner u n d er G overnor W il­
liam Langer.

Kindred Bank Election
At th e ir ^semi-annual m eeting, the
directors of th e K indred (N orth Da­
kota) State B ank held th e ir election
to fill vacancies. Elected w ere Jo h n
Ottis, president; M. G. K ruse, vice
president, and R. L. Trom , cashier.
The office of p resid en t w as m ade
vacant by th e death of Max H. Strehlow, who held the position for m ore
th a n 40 years. Mr. Otis, w ho w as
elevated to th e presidency, had been
cashier the sam e length of time.

Esmond Bank Liquidated
A nnouncem ent is m ade th a t the
F irs t In tern atio n al B ank of Esm ond,
N orth Dakota, for m ore th a n 40 y ears
one of th e leading financial in stitu ­
tions of Benson County, liquidated
and w ill close as soon as depositors
can be paid off.
Because of banking restrictions, th e
inab ility to secure com petent help in
th e bank, th e stockholders have de­
cided on v o lu n tary liquidation and
w ill w ind up th e affairs of th e b ank
as rapidly as possible.
The b ank had deposits of $288,258.98
at th e last statem en t m ade in April.
Loans and discounts w ere $189,700.93.
E. O. Craig is presid en t of th e ban k
and M innie D. Craig, form er speaker
of th e N orth D akota H ouse of R epre­
sentatives, and M. H. E ngel are di­
rectors.

Named to North Dakota
Board
G overnor Jo h n Moses has announced
ap p o intm ent of tw o m em bers of the
new state b anking board, created by
th e 1943 legislature.
G overnor Moses nam ed J. C. H offert
of C arrington, presid en t of the F o ster
C ounty Bank, for a five-year te rm and

The F irs t N ational B ank of D ickin­
son, N orth Dakota, has qualified as a
depository for w ithheld taxes, its
officers have been notified by th e F ed­
eral R eserve B ank in M inneapolis.
U nder this arran g em en t, em ployers
m ay deposit payroll deduction taxes
as th ey are m ade and w ill receive
tre a su ry form receipts to be forw arded
to th e collector of in ternal revenue
w ith q u arterly rep o rts req uired on
th is tax.
E m ployers w hose tax deductions are
sm all m ay rem it direct to th e collector
of in tern al revenue, b u t those w hose
deductions are m ore th a n $100 a m onth
m ust deposit them in an authorized
depository w ith in 10 days.
Serving in the capacity of depository,
th e F irs t N ational will accept deposits
not only from D ickinson em ployers
b u t also from those in neighboring
tow ns w ho do not have such service
available.

Change in Personnel
Several changes in personnel in
th e W alsh County State B ank of
G rafton, N orth Dakota, w ere an ­
nounced recently by W. J. Johnston,
president.
W endell W alker has been nam ed
a ssistan t cashier of th e bank, succeed­
ing R aym ond Carlson w ho has re ­
signed afte r tw o y ears service w ith
th e institution.
E d ith Jefferies, w ho has been an
em ploye of th e bank for seven years,
also has been appointed assistan t
cashier. K athleen O’Connell has been
added to th e clerical staff of th e bank.

W artim e Trust C o n feren ce
A M id-Continent W artim e T ru st
Conference sponsored by th e T ru st
Division of th e A m erican B ankers
A ssociation w ill be held in Chicago
at the D rake H otel, October 14 and
15, it w as announced by Louis S.
Headley, p resident of the T ru st Divi­
sion, A.B.A. Mr. H eadley is vice p resi­
dent of th e F irs t T ru st Com pany of
St. P aul State Bank, St. Paul, M inne­
sota.
Speakers from 11 states are being
invited to p articip ate in th e program ,
w hich w ill include discussions on
these w artim e tru s t problem s: Taxes,
m anpow er, operations, fees, special
problem s of sm aller tru s t departm ents,
pow ers of appointm ent, em ployes’
tru sts, investm ents, W ashington de­
velopm ents, and postw ar influences
affecting ow nership of property.

Northwestern Ranker September 1943

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

72

•

NORTH

T he C orporate F idu ciaries Associa­
tion of Chicago w ill act as h o st to th e
conference. The follow ing com m ittees
have been appointed by C hester R.
Davis, p resid en t of th e Chicago asso­
ciation, and vice p resid en t and tru s t
officer, Chicago T itle and T ru st Com­
pany:
A dvisory Com m ittee: L aw rence F.
Stern, president, A m erican N ational
B ank and T ru st Company; P hilip R.
Clark, president, City N ational B ank
and T ru st Company; H olm an D. Pettibone, p resident, Chicago T itle and

DAKOTA

T ru st Company; W alter J. Cum m ings,
president, C ontinental Illinois N ational
B ank and T ru st Company; Solomon A.
S m i t h , president, N o rth ern T ru st
Company; F ra n k R. E lliott, president,
H a rris T ru st and Savings Bank; E d ­
w ard E. Brow n, president, The F irst
N ational B ank of Chicago.
C om m ittee of th e C orporate F i­
duciaries A s s o c i a t i o n of Chicago:
C hester R. Davis, vice presid en t and
tru s t officer, Chicago T itle and T ru st
Company, chairm an; M ark W. Lowell,
vice president, C ontinental Illinois

T h e W a r S e r v ic e

M e e t in g

An Opportunity for Banking
T

NEWS

H E W arService M eeting of th e A .B .A . this
y e a r— the first general m eeting since Pearl

H a r b o r — m ay well be the m ost im portant in the
history of the Association.
M uch has been said in the last two years of the
contributions m ade by the A rm ed Forces — by In ­
dustry and A g ricu ltu re— by Labor and M anage­
m en t— to the war. C om paratively little has been
heard, however, of the unobtrusive p a rt of B ank­
ing in the struggle. Y et the services banks have
perform ed— and will continue to perform — are in­
dispensable to success.
T h e W arService M eeting provides to A m eri­

•

N ational B ank and T ru st Company;
Clarence B. Je n n e tt, vice president,
The F irs t N ational B ank of Chicago;
L ynn Lloyd, vice president, H arris
T ru st and Savings Bank; R onald M.
Kim ball, vice president, C ontinental
Illinois N ational B ank and T ru st
Company; R ichard Phelan, Chicago
T itle and T ru st Company; T hom as H.
Beacom, Jr., vice president, The F irst
N ational B ank of Chicago; Louis W.
F ischer, vice president, A m erican N a­
tional B ank and T ru st Company;
B enjam in K ilpatrick, a ssistan t vice
president, A m erican N ational B ank
and T ru st Company; A rth u r T. L eon­
ard, vice president, City N ational
B ank and T ru st Company; W. W. Hinshaw , Jr., secretary and tru s t officer,
City N ational B ank and T ru st Com­
pany; L. L. M cA rthur, Jr., vice p resi­
dent, N o rth ern T ru st Company; W il­
liam T u rn er, 2nd vice president,
N o rth ern T ru st Company; H arold Eckh art, vice president, H arris T ru st and
Savings Bank.
Com m ittee on A rrangem ents: K en­
n eth W. Moore, office m anager, Chi­
cago T itle and T ru st Company, ch air­
m an: Joseph T. Keckeisen, assistan t
vice president, The F irs t N ational
B ank of Chicago; W alter E. Toon,
a ssistan t tru s t officer, City N ational
B ank and T ru st Company; H ow ard
Johnson, A m erican N ational B ank and
T ru st Company; F red W. H aw ley, Jr.,
tru s t officer, C ontinental Illinois N a­
tional B ank and T ru st Company; J.
Mills E aston, m anager advertising and
publicity, N o rth ern T ru st Company;
M erw in Q. Lytle, a ssistan t vice p resi­
dent, H arris T ru st and Savings Bank;
M ichael A. Georgen, a ssistan t vice
president, City N ational B ank and
T ru st Company.

can bankers an o pportunity to show the vitally
im portant role which banks are playing in the fight
for national existence— an opportunity to dem on­
strate th a t banks, from coast to coast, are working
in every way in th eir power to help the nation win
th rough to V ictory.

Ir
T

r u s t

v in g
C

o m p a n y

N ew Y o rk
M e m b e r F e d e ra l D e p o s it In su ra n c e C o rp o ra tio n

Northwestern Banker September 1943


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

Pioneer North Dakota
Banker Dies
Tore A. Belgum, 63, R oberts C ounty
b an k er for 40 years, first a t Sisseton,
th en a t Corona and Sum m it, died at
his hom e a t Sum m it, N orth Dakota,
last m onth follow ing an illness of
several m onths du ratio n of enlarge­
m ent of th e heart.
Deceased came to R oberts County
at an early age and grew up in th a t
com m unity, the son of Mr. and Mrs.
A rne Belgum, pioneer settlers of Lee
Tow nship. He entered th e banking
business w hen a young m an and
followed th a t business u n til his death,
being associated w ith various banks
b u t alw ays in R oberts County.

73

O U /L

Bond Selling Responsibilities Double!

Starting September 9th, your Government will conduct the
greatest drive for dollars from individuals in the history of the
world—the 3rd War Loan.

increased Pay Roll percentages are the best warranty of suffi­
cient post war purchasing power to keep the nation’s plants
(and yours) busy.

This money, to finance the invasion phase of the war, must
come in large part from individuals on payrolls.

2 . In the 3rd War Loan, every individual on the Pay Roll
Plan will be asked to put an extra two weeks salary into War
Bonds—over and above his regular allotment. Appoint your­
self as one of the salesmen—and see that this sales force has
every opportunity to do a real selling job. The sale of these
extra bonds cuts the inflationary gap and builds added post­
war purchasing power.

Right here's where Y O U R bond selling responsibilities
DOUBLE!
For this extra money must be raised in addition to keeping the
already established Pay Roll Allotment Plan steadily climbing.
At the same time, every individual on Pay Roll Allotment
must be urged to dig deep into his pocket to buy extra bonds,
in order to play his full part in the 3rd War Loan.

Financing this war is a tremendous task—but 130,000,000
Americans are going to see it through 100%! This is their own
best individual opportunity to share in winning the war. The
more frequently and more intelligently this sales story is told,
the better the average citizen can be made to understand the
wisdom of turning every available loose dollar into the finest
and safest investment in the world—United States War Bonds.

Your now doubled duties call for these two steps:
1. If you are in charge of your Pay Roll Plan, check up on
it at once—or see that whoever is in charge, does so. See
that it is hitting on all cylinders—and keep it climbing! Sharply

★
★

★

BACK THE ATTACK | With War Bonds!
This space is a contribution to victory today and sound business tomorrow by N O R TH W ESTER N B A N K ER

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

Northwestern Banker September 1943

74

An essential and indispensable part
in the War Program is being played
by Banks.
We are especially equipped and lo­
cated to serve Banks, Producers and
Feeders in this great effort.

Stock Yards National Bank of South Omaha
OMAHA, NEBRASKA
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 rp o ra tio n

Northwestern Banker September 19^3

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

C o co nut From Honolulu
A coconut in the original shell w as
received recently by th e F irs t N ational
B ank of F airb u ry , N ebraska, from E d
Scheips, w ho is stationed in H onolulu.
On one side w as a draw n native scene
w ith palm trees, and on w h at looks
like a sign board is th e nam e and
address.
It came u nw rapped w ith
th e stam p stuck on the shell and w ith
even th e censor’s stam p on it.

NEBRASKA
NEWS
WM. B. H U G H ES
S e c r e ta r y
O m aha

R. F . CLA RK E
P a p ilH o n
(O n le a v e of ab se n c e
w ith R e d C ro s s)

O hiowa Bank
Transfers Assets
R ecently a tra n sa c tio n w as com ­
pleted w hereb y th e H om e B ank of
Ohiowa, N ebraska, tra n sfe rre d all its
loans and discounts, as w ell as its
deposits to th e G eneva State B ank
of Geneva, N ebraska. The H om e B ank
ceased as a business in stitu tio n on
th a t date except for clearing up de­
tails th a t are involved in such a tra n s ­
action.
The G eneva S tate B ank has a record
of n early 45 y ears of successful opera­
tio n in F illm ore County. Its capital
stock w as o riginally $25,000. As the
business expanded, th e capital w as in ­
creased to $100,000, and a su rp lu s of
$30,000 w as b u ilt up, m aking a com ­
bined capital and su rp lu s of $130,000.
A t p re se n t E a rl H. W ilkins, p resi­
dent; Carl E. Schneider, cashier; and
M elvin L. R alston, a ssista n t cashier,
are active in th e m an ag em en t of th e
business. G rady C orbitt, C harles H.
Sloan and F ra n k O. Edgecom be com ­
plete th e list of officers and directors.

Installs M ore Safe
Deposit Boxes
The F irs t N ational B ank of H opper,
N ebraska, has been occupied w ith the
in stallatio n of an additional section of
safety deposit boxes in th e b an k v a u lt
to fill th e ir expanding business along
th is line and th e grow ing dem ands of
p atro n s for th is form of safeguarding
docum ents and o th er valuables.

Resumes Bank W ork
Miss D oris Lem ke, w ho recen tly
su b m itted to an appendix operation
at a B eatrice hospital, has resum ed
w o rk in th e W ym ore N ational Bank,
W y m o r e , N e b r a s k a . Mrs. Donald
H a rp ste r filled th e position d u rin g h e r
absence.

Lightning Strikes Bank
The chim ney on th e F a rm e rs State
B ank building in A urora, N ebraska,
w as stru c k by lig h tn in g last m o n th

w hen .62 inch of rain fell in A urora.
A severe electrical storm accom panied
th e rain. The chim ney on th e south
end of th e building w as stripped of
th e outside layer of bricks on all four
sides.

Bank Employes H ave Picnic
L ady em ployes of th e McDonald
S tate Bank, N orth P latte, N ebraska,
enjoyed a picnic recently at the Res­
ervoir. A picnic supper w as served
and th e rem ainder of th e evening w as
sp ent in boating, sw im m ing and in
social d i v e r s i o n . A t t e n d i n g w ere
Misses Lucille Sluder, E linor M cKin­
ley, B etty Johnson, M ary A nn Raue
and Mrs. Dan Buck.

Fremont Banker
Speaker in O m aha
J. M. Sorenson of th e Stephens
N ational B ank of F rem ont, N ebraska,
w as a guest and a speaker a t a d in n er
m eeting of th e Douglas-Sarpy-W ashington-B urt Counties B an k ers’ Asso­
ciation, held at th e P axton H otel in
Omaha.
Them e of S orenson’s talk w as th a t
public funds should not be used for
priv ate loans except in an em ergency.
The ban k ers stressed th e increasing
th re a t of governm ent subsidized cred­
it.
O ther guests included Congressm an
K arl Stefan of Norfolk; C ongressm an
H ow ard Buffet of Omaha; W illiam N.
M itten and Lloyd B lair and J. Dale
M illiken of the F rem o n t N ational
Bank. A p p r o x i m a t e l y 100 persons
attended.

Resumes W o rk
F. T. Shaughnessy has resum ed his
duties at the C itizen’s N ational B ank
of St. Paul, N ebraska, after over a
w eek’s absence, du rin g w hich tim e
he received m edical tre a tm e n t at the
St. F ran cis H ospital in G rand Island.

St. Paul National
Names Director
B ryan Jen sen is one of the directors
at th e St. P au l N ational Bank, having
been chosen for th a t d uty recently.
Mr. Jen sen purchased th e stock from
several stockholders and becam e in­
terested in th e institution.

New C re d it Association
In Eddyville
D uring th e last few m onths a half
dozen or m ore new state banks have
been organized in N ebraska, in nearly
every case replacing a cooperative
credit association. Out of E ddyville
the o th er day th e situ atio n w as re ­
versed. The Eddyville State B ank
closed business recently, liquidating at
100 per cent on th e dollar. The n ex t
day L. E. M ohler organized a co­
operative credit association and has
been given au th o rity to proceed w ith
his establishm ent.

Redecorating
The in terio r of th e Seven Valleys
State Bank, Callaway, N ebraska, is
being redecorated at th is tim e.

Increase in C a p ita l
A t a d irecto rs’ m eeting of Security
S tate B ank of E dgar, N ebraska, a
resolution w as passed raising th e capi­
ta l stock to $25,000.00 by tra n sfe rrin g
$10,000.00 from th e su rp lu s fund.
T his w ill leave th e capital stru c tu re
to tal th e same, b u t as follows: Capital
$25,000.00; su rplus $5,000.00; plus u n ­
divided profits w hich w ere $4,866.96
on Ju n e 30th, 1943.

Juni or News
From the Nebraska
Junior Bankers Association
John L auritzen, Fjditor
i N B E H A L F of th e N ebraska Ju n io r
I B ankers Association, I w ish to
th a n k The N orth w estern B anker for
giving us th is splendid o p p o rtunity
of keeping our organization active
th ro u g h o u t the duration; th ey have

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Federal Reserve Bank of St. Louis

76
been m ore th a n cooperative in aiding
the Ju n io r B an k ers of N ebraska at
every opportunity.
Lt. Leonard H ancock w as recen tly
m ade an in stru c to r of th e 7th F e rry
Group at G reat Falls, M ontana. L eon­
ard w as associated w ith his father,
R. K. H ancock, a t th e B u rt C ounty
State B ank in T ekam ah from 1935 u n ­
til 1939. He left to tak e up flying
and a fte r th re e m o n th s as a pilot for
the O klahom a A irw ays, he w en t to
Canada to act as in stru c to r for th e
Royal C anadian A ir Force. He en ­
listed in th e U. S. A rm y A ir Corps in
May, 1942, and w as assigned to th e
F e rry Com m and as a F irs t L ieutenant.
He has been ferry in g “F ly in g F o rt­
resses” u n til his recen t ap p o in tm en t
as an in stru cto r.
A lyce C ollett, a fo rm er em ploye of
th e C rete S tate Bank, is w ith h e r
husband, P. K. Collett, also a form er
employe, in H ouston, Texas, w here
Mr. Collett is tak in g flight officers’
train in g . M iss Joan Jelinek, d au g h ter
of H enry Jelinek of th e W ilber State
Bank, has been recru ited in th e
W AVES. All crops in th e Saline
C ounty and vicinity seem to be
excellent; th e re w as som e w in te r kill­
ing of w heat.
Max H osier (F irs t N ational B ank of

F airb u ry ) enlisted in th e N aval Re­
serve. He is now tra in in g in P eru,
N ebraska. E dgar Scheips of th e sam e
ban k is w ith th e Sea Bees as Chief
Yeoman. He has been at P earl H arbor
for five m onths. W. C. Sutherland, also
of th e F irs t N ational of F airb u ry , is
now em ployed in defense w ork at
Long Beach w h ere he has found a
lack of m eat and housing. T here w as
a good sm all g rain crop in th e F a ir­
b u ry te rrito ry , b u t th e re is need of a
good ra in at th is tim e.

H E U nited States tre a su ry d ep art­
T
m ent recently announced appoint­
m en t of
presid en t of the
D ale Clark,

Om aha N ational Bank, as chairm an
of th e N ebraska w ar finance com m it­
tee, w hich w ill be th e sole selling
agency for all tre a su ry securities ex­
cept those sold to com m ercial banks.
The new group w ill have four m ajor
divisions: A griculture, headed by F o r­
m er G overnor Sam R. M cK elvie of
Lincoln; in dustrial; banking, headed
by B en n ett S. M artin, Lincoln; and
com m unity.
A rthur 1 . Coad, presid en t of th e
P ack ers N ational B ank of Omaha, has
been convalescing follow ing an op­
eratio n perform ed recently a t St.
Jo se p h ’s hospital in Omaha, follow ing
recu rren ce of an illness.
Judge l e o n W . P ow ers, w ho in 1936
resigned from th e Iow a suprem e court
to accept appointm ent as general
counsel for th e F a rm C redit A dm inis­
tra tio n a t Omaha, announced recently
th a t he w as leaving th e FCA to re tu rn
to p riv ate law practice at Denison,
Iowa.

Maj. E m m ett Solom on, form er assist­
a n t tru s t officer of the F irs t N ational
B ank of Om aha and w ho for several
m onths has been in th e m anpow er
division of national selective service
h ead q u arters at W ashington, came
back hom e recen tly to spend a leave
w ith his family.
If Italy should fall w ith o u t a p ro ­
longed cam paign, it m ight have a
direct effect on th e n um ber of m en
called into th e arm ed forces in the
U nited States, he said in an interview .

W ord th a t 2nd Lt. Billy B echter, 19,
form er O m ahan and son of Mr. and
Mrs. A llen 1 . B echter, Burlingam e,
California, w as rep o rted m issing in
action after th e F lying F o rtre ss on
w hich he w as a n avigator w as shot
dow n over occupied F ran ce Ju ly 14.
H is fa th e r is a form er N ebraska bank
exam iner. F o rm erly of Pierce, Ne­
braska, th e fam ily lived at Lincoln
before com ing to Om aha and m oved to
C alifornia five y ears ago.
G w yer H. Yates, form er bank p resi­
dent at Omaha, has re tu rn e d to his

P u s h th e Saie o f W a r B o n d s
★

★

★

FIRST NATIONAL BANK OF OMAHA

Northwestern Banker September 1943

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Federal Reserve Bank of St. Louis

77
hom e in S anta B arbara, C alifornia,
a fte r a w eek ’s stay in Om aha a t th e
Fonten elle Hotel.
C. W. Mead, p resid en t of th e Ne­
brask a Bond and M ortgage C orpora­
tion, w as n o m inated as th e candidate
for vice p resid en t of th e Rocky M oun­
tain area of th e M ortgage B a n k e rs’
A ssociation of A m erica, it w as a n ­
nounced in Chicago. N om ination w as
considered ta n ta m o u n t to election.
T he vote w as to be tak en a t th e a n n u al
m eeting in Chicago, S eptem ber 23-25.
P. H. S tew art resigned as a ssista n t
vice p resid en t of th e F ed eral L and
B ank of Omaha, to accept a position as
agronom ist w ith th e R obinson H ybrid
Seed Corn C om pany of W aterloo, N e­
braska.
A fter 20 y ears w ith th e U n iv ersity
of N ebraska college of ag ric u ltu re as
extension agronom ist, S tew art joined
th e land b an k in 1937. Before being
nam ed a ssista n t vice p resid en t in
charge of th e b a n k ’s loan an d real
estate d ep artm en ts, he served a y ear
as m an ag er of th e field service di­
vision.
H e w ill continue to live in Omaha.

A fo rm er O m ahan, Second Officer
P h y llis Propp, n ativ e of M arshalltow n,

A

Iowa, and before en terin g service the
only w om an m em ber of th e legal de­
p a rtm e n t of th e F ed eral L and B ank of
Omaha, now is w ith th e W om en’s
A rm y Corps (WAC) stationed at Day­
tona Beach, Florida.
She holds a doctorate in law from
th e U niversity of Iowa and practiced
law at M ason City, Iowa, before join­
ing the F a rm C redit A dm inistration
a t O m aha and later th e land bank.
D eposits in state banks in N ebraska
increased $28,625,044 d uring th e six
m onths from D ecem ber 31, 1942, to
Ju n e 30, 1943, according to S tate B ank­
ing D irector W ade M artin. Loans de­
creased $15,877,953.
D eposits on Ju n e 30 w ere $163,239,397 and loans $39,935,022.
B onded indebtedness of th e city of
Omaha, Omaha school d istrict and
Douglas county has been reduced
about 50 p er cent since 1932, according
to W. L. P ierpolnt, presid en t of th e
A ssociation of Om aha Taxpayers.
He declared th ere is no know n com­
parable record of debt reduction in
an y com m unity of sim ilar size, in the
last decade.
Gross bonded debt now (as of Ju ly
1, 1943) is $14,466,560, com pared to
$28,729,662 on Ja n u a ry 1, 1932.

R ELIA B LE

In te re st paym ents have dropped
from $1,318,159 in 1932 to $660,345 in
1943.
W earing a different uniform now
th a n th a t of Ak-Sar-Ben king is W. B.
“Bob” M illard, jr., 47th king of the
m ythical realm of Q uivera, on leave
from his duties as vice presid en t of
th e Omaha N ational Bank, and now a
lieutenant-colonel in th e signal corps,
on d uty in W ashington. K ing “Bob”
and his queen, Alice Jean ette Meyer,
are holding over for th e duration,
having already served tw o term s and
it looks like th e y ’ll carry on for a third.
The only previous Ak-Sar-Ben ru lers
to serve m ore th a n one term w ere
W. D. H osford and E lizabeth Reed
C arpenter, w ho reigned d uring W orld
W ar I.
An Ak-Sar-Ben councillor, Lt. (sg)
R ichard H. M allory, on leave from his
duties as vice p resid en t of the U nited
States N ational B ank of Omaha, is
now at Cincinnati, Ohio, on active duty
w ith the naval reserve. M allory is a
v eteran of W orld W ar I, having served
th en in the air corps. In Ak-Sar-Ben,
he served as councillor to Ak-Governor
H. M. B u sh n ell, p resident of th e U ni­
ted States N ational.
In th e absence of M illard and Mal­
lory, th e Ak-Sar-Ben m em bership team

O U TLET

EQUIPPED W ITH THE EXPERI­
EN CE AND FACILITIES N EC ES­
SARY

TO

SERVE

TH E

EX ­

PANDED W ARTIM E NEEDS O F
TH E

L IV E S T O C K

INDUSTRY.

For M o r e T h a n 5 0 Y e a rs
A Dependable Term inal M a r k e t
ST. J O S E P H

STO CK

YARDS

CO.

South St. Joseph, Mo.


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Federal Reserve Bank of St. Louis

Northwestern Banker September 1943

78
w hich th ey headed w as consolidated
w ith a n o th er team in th e a n n u al drive.
Maj. E m m ett G. Solom on, w hile in
Omaha on leave from his duties w ith
the m anpow er division, selective serv ­
ice h ead q u arters, W ashington, D. C.,

addressed th e Omaha K iw anis Club,
of w hich he is a p ast president. Be­
fore en terin g active service, he w as
a ssista n t tru s t officer of th e F irst
N ational B ank of Omaha.
Mr. and M rs. H. M. B u sh n ell left

36-1
M e a n s s a tis fa c to r y s e r v ic e
in t h e p a s t , m e n t a lly a l e r t
a n d a b le to s e r v e it s c o r r e ­
s p o n d e n t b a n k s in th e fu tu r e .

early in A ugust for a vacation at th eir
Clam Lake, W isconsin, sum m er home.
Mr. B ushnell is presid en t of the U ni­
ted States N ational B ank of Omaha.
C om m enting on statem en ts recently
th a t th e m idw est is beginning to feel
a farm land price boom again, E. N.
V an H orne, presid en t of the F ederal
L and B ank of Omaha, said farm prices
in both N ebraska and South D akota
are still below the 1910-14 level, w hich
is generally accepted as “n o rm al”.
In Iowa, how ever, prices are prob­
ably closer to th e norm al level, he
added, and th ere have been reports
from some areas th a t the 1910-14 level
has been passed.
The Omaha land b an k today has
only about six h u n d red farm s for sale,
com pared w ith 9,300 farm s at th e
high point in 1939.
L and values in N ebraska began
th e ir com eback in 1941. The m ark et
has been strong d uring th e p ast year
and it is estim ated th a t prices are 15
to 20 p er cent h igher th an a year ago
at th is time.

Conditions Excellent

NATIONAL

BANK

S t .

hpesoJ , M

o .

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

B usiness and farm ing conditions in
and around F rem ont, N ebraska, are
excellent, according to J. M. Sorensen,
executive vice p resident of th e Steph­
ens N ational Bank, in th a t city. At the
tim e of his report, about th e middle of
July, Mr. Sorensen stated th a t w heat,
ju st sta rtin g to be combined, w as in
some cases ru n n in g as high as forty
bushels to th e acre, an exceptional
yield. D eposits in th e Stephens Na­
tional, as in all banks, are high, w ith
loans ra th e r quiet.

Receives Commission
in N aval Reserve

W HY "T H E SC O U T "
IS " C IT Y N A T IO N A L 'S "
TRA D E M A RK
A "Scout" is chosen for his resourcefulness, wisdom and dependability. He
must be able to handle unforeseen circumstances, observe accurately, and have
practical judgment.
An Indian Scout, reproduced from a famous statue, "The Scout", in a Kansas
City park, is the trade mark of "City National".
It is fitting that "The Scout" should symbolize this bank which has gone ahead,
utilizing its skill and judgment for the benefit of others.

*7IteCudtcymeA.

ß u iU ßcutk.

CITYo NATIONAL
B A M f> TRUSTn-. CO.
p
j Member Federal Deposit Insurance Corp. n
u
M

& brand

Resources Over $75,000,000.00

Kansas lltlj, Mo.

B ernard DeLay, assistan t cashier of
DeLay N ational of Norfolk, N ebraska,
has been com m issioned a lieu ten an t
(jg) in th e naval reserve. He is an
assistan t pay m aster in th e supply
corps and is now on d u ty at San
Diego, California. He is th e fo u rth son
of J. J. DeLay, presid en t of this bank,
to become a com m issioned officer in
the arm ed forces.
Plum ber: “H ow did you m anage,
m a’am, w ith all this w ater in your
basem ent?”
H ousew ife: “Quite well. I tau g h t
both m y sons to sw im .”

BANKS

Bought and Sold

Confidentially and with becoming dignity

BANK E M P L O Y E E S P LACE D .
38 Y e a r s S a tis fa c to r y Service

THE CHARLES E. WALTERS CO.
OM AHA, N EB R A S K A

Northwestern Banker September i9fiS

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Federal Reserve Bank of St. Louis

79
to order an accounting betw een him
and a group w ho w ere engaged w ith
him in th e banking business at W ood
River.
L yhane says th a t v/ith the o th er di­
rectors of the F arm ers State b an k it
w as agreed in w ritin g each w ould
purchase certain am ounts of notes th e
banking d ep artm en t had questioned,
and if any losses w ere suffered th ey
w ould be shared equally.

60 Y ears of Service

H E 274 b an k s operatin g in Ne­
b rask a show ed a $29,164,952 in ­
T
crease in resources th e first six
m onths, State B anking D irector W ade
R. M artin said, w hich b rin g s th e ir
assets up to $177,060,177.
A t th e close of 1942 th e b an k s had
a collective to tal resource of $147,895,224.
T otal deposits jum ped from $134,614,352 to $163,279,053, it w as show n,
or a $28,625,044 increase.
B ank loans have been g reatly re ­
duced in th e p ast six m o n th s also,
M artin pointed out, w ith $15,877,953
being repaid to reduce th e to tal figure
to $39,935,022.
A no th er significant figure in the
sta te m e n t pointed out by M artin is
th e real estate in v estm en ts of banks,
w hich in th e p ast six m onths have
been reduced from $43,565 to $10,949.
“D uring th e depression and d ro u th
y ears m any of th e b an k s in th e state
w ere forced to tak e over real estate
in foreclosure proceedings,” he ex­
plained. “W ith th e re tu rn of b e tte r
financial conditions along w ith sev­
eral good crop years, people have
been able to redeem th e ir p ro p e rty .”
H eavy W ar Bond buying w as show n
also, w ith b anks in N ebraska ow ning
$1,939,838 U. S. g o v ern m en t bonds six
m o n th s ago and increasing th e ir bond
purch ases to $6,505,931.
The cash reserv e of th e b anks in th is
state cam e up from 43 to 46.9 p er cent,
w ith to tal capital accounts to talin g
appro x im ately 13 m illion dollars.
A rticles of co rporation for a general
loan com pany to be dom esticated in
N ebraska and nam in g T hom as C.

Woods, P hilip M. A itken, and W illiam
I. A itken as resid en t agents, w ere
filed w ith S ecretary of State F ra n k
M arsh.
The corporation w ill be know n as
th e C heckm aster P lan of N ebraska,
w ith a capital of $10,000. In corpora­
to rs are K endall W illiam s, G. M athers
C lark and W illiam A. H am lin, all of
N ew Y ork City.
Ben Saunders, one tim e secretary of
th e state banking board, now has a
th e state banking board, now has the
F t. K earney State B ank at K earney,
N ebraska. D eposits of betw een th ree
and four m illion dollars m ake the
b an k th e second largest state financial
in stitution.

H. G. W ellenseik, as atto rn ey for
M. D. L yhane, asked th e N ebraska
Suprem e Court, in a brief filed, to
direct the d istrict court of H all C ounty

Sixty years of service in F a irb u ry
and Jefferson county is the record a t­
tained by th e F irs t N ational B ank of
F airb u ry , N ebraska, w hich last w eek
observed the sixtieth an n iv ersary of
its establishm ent.
T h at th e stockholders of th e bank,
and, in tu rn , th e patro n s of th a t in ­
stitution, have had faith in th e m en
w ho have guided its destiny is reflected
in th e fact th a t only five m en have
served as p reisd en t of th e F irs t N a­
tional B ank du rin g its 60 y ears’ h is­
tory. J. A. B uckstaff of L incoln w as
th e first president, and these m en have
succeeded him in th is order: D. B.
Cropsey, I. Bonham , L u th e r Bonham ,
and Ivan C. Riley.
The F irst N ational B ank started
w ith capital stock of $50,000, and has
been increased th ro u g h th e years u n til
today the capital stock is listed at
$150,000, w ith su rp lu s and undivided
profits totalling $109,243.79, and w ith
deposits am ounting to $5,100,278.71.

New A ssistant
D orothy Rudd is th e new assistan t
cashier of th e B ank of Paxton, N e­
braska.

3 rd W a r L o a n
$ 15 , 0 0 0 , 0 0 0 ,0 0 0
O p e n s S e p te m b e r 9 th

Back the A ttack w ith W ar B o n d s

C o n t in e n t a l R

a t io n a l

[y^K
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.

°t
L IN C O L N

Member Federal Deposit Insurance Corporation

OM AHA

Northwestern Banker September 1943

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Federal Reserve Bank of St. Louis

80

N ow A s N e v e r B efo re
It Is I m p o r ta n t T h at
We D o O u r P a r t

B U Y

-

-

-

W

A R

B O N D S
B a ck O u r F ig h tin g F ron t
T h ey B e a r th e B ru n t

O F F IC E R S A N D D IR E C T O R S

A L V IN E. JO H N S O N
P r e s id e n t
H . C. K A R P F
V ic e P r e s id e n t

R. H . K R O E G E R
V ic e P r e s id e n t

PAU L HANSEN
C a s h ie r
L. V . P U L L IA M
A s s t. C a s h ie r

C. G. P E A R S O N
A s s t. C a s h ie r

W . DEAN VOGEL
A s s t. C a s h ie r

H. H. E C H T E R M E Y E R
A s s t. C a s h ie r
E A R L R. C H E R R Y
A s s t. C a s h ie r

T . J. P R IC E , JR .
A s s t. C a s h ie r
W . P . A D K IN S
C h a irm a n

H . B. B E R G Q U IS T
C o al a n d G r a in

L . S. B U R K
C h ic a g o

JA S . J. F IT Z G E R A L D
P r e s . C o m m e r c ia l S a v . & L o a n A ss n .

T. E. G L E D H IL L
F arm e r

L E O T. M U R P H Y
M g r . A llie d M ill s , I n c .

H E R M A N K. S C H A F E R
P r e s . M a n e y M ill in g Co.

C A R L A. S W A N S O N
P r e s . J e r p e C om . & C o ld S to r a g e C o.
J. J. W E L S H
B u tl e r - W e l s h G r a in Co.

LIVE ST O C K N A T IO N A L B A N K

OMAHA
R esou rces O ver $ 5 0 ,0 0 0 ,0 0 0 .0 0
M e m b e r F ed e ra l R e s e r v e S y s t e m and F ed e ra l D e p o s it Insurance C orporation

Northwestern Banker September 1943

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Federal Reserve Bank of St. Louis

81

57th Annual Convention

Iowa Bankers Association
Another W a r - W o r k

C o n fe re n c e

Des M oines— September 5-6
Headquarters—Hotel Fort Des Moines
A. GRONSTAL, p resid en t of th e
Council Bluffs Savings B ank, and
♦ p resid en t of th e Iow a B ankers
A ssociation, has an nounced th e p ro ­
gram for th e 57th an n u a l convention
of th e organization, to be held in Des
M oines on Sunday and M onday, Sep­
tem b er 5th and 6th. H e ad q u arters w ill
be a t th e F o rt Des M oines H otel, w ith
all sessions, a luncheon and a dinner,
held there.
The Iow a convention th is y e a r is
again designated as a “W ar W ork Con­
ference,” w hich it w ill be in every
sense of th e w ord. As Mr. G ronstal
says, “A serious, full of facts, up-to-them in u te review of w artim e w ork, w a r­
tim e conditions and w artim e business
affecting and of in te re st to Iow a banks.
T h ere w ill be no e n te rta in m e n t, nor
social hour, n o r p riv ate p arties by in ­
dividual b an k s th is y e a r.”
R eg istratio n w ill s ta rt at 9 o’clock
Sunday m orning, S eptem ber 5th, on
th e m ezzanine floor of th e H otel F o rt
Des Moines. T h ere w ill be no general
reg istra tio n charge except th e custom ­
a ry fee for those w ho are n o t Iow a
bankers. Y our badge w ill adm it you to
all sessions but, of course, you m u st
have a tick et for th e a n n u al d in n er on
S unday evening. P ro m p tn ess in a t­
tendance is u rg ed a t all sessions and
o th er g atherings.
The Iow a B anking D ep artm en t will
hav e a room on th e m ezzanine floor of
th e hotel, P a rlo r D, provided for con­
venience of convention delegates to
hold such business conferences as th ey
m ay w ish w ith officials of th e d e p a rt­
m ent, State B anking Board, or w ith
exam iners.
A t th e close of th e pro g ram follow ­
ing th e d in n er on Sunday evening,
Iow a m em bers of th e A m erican B ank­

B


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Federal Reserve Bank of St. Louis

ers A ssociation w ill hold th e ir custom ­
a ry caucus to nom inate candidates for
th e several Iow a ABA offices. These
nom inations w ill th e n be p resen ted at
th e an n u al m eeting of Iow a ABA m em ­
bers to be held M onday forenoon, Sep­
tem ber 6th.
The sixth ann u al m eeting of the
Iow a A ssociation of B ank A uditors
and C om ptrollers and th e Iow a Ju n io r
B ankers A ssociation w ill be held S un­
day afternoon, Septem ber 5th, sta rtin g
a t 1:15. This session, an especially im ­
p o rta n t one, is open to all and, since
th e re are no o th er convention sessions
th a t afternoon, should have a large
attendance. The program for th e Iow a
A ssociation of B ank A uditors and
C om ptrollers and th e Iow a Ju n io r
B an kers A ssociation appears on an ­
o th er page of th is issue.
T he convention program , including
th e d in n er on Sunday evening and th e
sessions on M onday, is as follows:

Sunday Evening, September 5th
S upper (In fo rm al)—M ezzanine floor,
F o rt Des Moines Hotel. A dm ission
by ticket only. P urch ase tickets early
as possible from hotel tick et seller
stationed near C onvention R eg istra­
tion Desk. U nder th e auspices of
“O rganization of P ast P resid en ts and
Ex-Councilm en of I. B. A.”. P a st P resi­
dents, Ex-Councilm en and all ban k ers
(th is includes w ives also) w ho have
been in active banking in Iow a for 50
y ears or m ore w ill sit at tables of p re ­
siding officer.
S peakers —F rank C. W elch, Cedar
R apids, as presid en t of th e “O rganiza­
tion of P ast P resid en ts and Ex-Council­
m en of I. B. A.” w ill preside. The
sp eaker of th e evening is Gardner
C ow les, Jr., presid en t of th e Des

B. A. G R O N S T A L
P r e s id e n t , I o w a B a n k e r s A s s o c ia tio n

Moines R egister & T ribune, w ho u n til
recently has been serving as D irector
of Domestic O perations of th e Office
of W ar Inform ation, W ashington, D.
C.; in tern atio n ally know n for w orld
trip w ith W endell W illkie of this past
y ear from th e experience of w hich
W endell W illkie w rote th e now w orld
fam ous book “One W orld”. Mr. Cowles
is a talen ted speaker and has had
exceptional opportun ities to g a in
w orldw ide inform ation on w orld w ar
conditions. He w ill speak on “The
D angers and O pportunities of the
P eace”.
B usiness m eeting of P a st P resid en ts
and Ex-Councilm en in Palm Room,
M ezzanine floor, follow ing close of
sup p er program .

Monday Morning, September 6th
B. A. Gronstal, P re sid en t I. B. A.,
Council Bluffs; Invocation by Most
Rev. G. T. B ergan, Des Moines; E. F.
B u ck ley, Des Moines, A ddress of W el­
come; C. H. M egorden, W aukon, R e­
sponse; A. T. D onhow e, Des Moines,
presen ts ivory gavel to P resident.
S peakers —Dr. H. G. H arm on, p resi­
dent, D rake U niversity, Des Moines;
V ernon L. Clark, E xecutive M anager,
Iow a W ar Finance Com m ittee, “The
T h ird W ar Bond Cam paign”; in tro ­
duces John J. A nton, Vice P resident,
F irs t N ational Bank, Chicago, “The
B an k ers’ R esponsibility in M eeting
th e F in an cin g Needs of th e T reasury,
Both for T h eir Own A ccount and in
th e Sale of Bonds to O thers”; A dis­
cussion on “T H E IOWA BANKS’
PLACE IN AGRICULTURAL CRED­
IT ”. Speakers on th is them e subject,
from four states, w ill include (a) B. A.
Gronstal, Council Bluffs, P resid en t I.
B. A., “L et Us H ave One P ro g ram ”;

Northwestern Banker September 19b3

82

Candidates for President
of the Iowa Bankers Association

In 1943

“Some O bservations—W hat Shall Be
the A nsw er?”
Election of new I. B. A. officers and
A. B. A. officers.

Monday Noon, September 6th
Both m en and w om en registered at
the Convention w ill be luncheon
guests of th e Des Moines Clearing
H ouse A ssociation in four dining
room s on th e M ezzanine floor of the
F o rt Des Moines Hotel. Your luncheon
tick et w ill be given you w ith your
program w hen you register.

In 1944

Monday Afternoon, September 6th
“Shop T alks” on im p o rtan t and v a ri­
ous bank operating economies during
th is w ar.
T his session u n d er the
auspices of “O rganization of Officers
of County B ankers A ssociations”.
J. F. K ennedy, New H am pton, P resi­
dent; W. W. B lasier, Jesup, Vice P resi­
dent; John D. W illard, Persia, Secre­
tary. G reetings from P resid en t B. A.
Gronstal. Them e of th is session is
“A BANK OPERATIONS CLIN IC”.

V IV IA N W . JO H N S O N
P r e s id e n t
F i r s t N a tio n a l B a n k , C e d a r F a ll s

R. R . B R U B A C H E R
P r e s id e n t
T o y N a ti o n a l B a n k , S io u x C ity

Two h ats are in th e rin g for the office of presid en t of th e Iowa B ankers
A ssociation—th a t of V ivian W. Johnson, p resid ent of the F irst N ational Bank,
Cédai Falls, w ho is a candidate for th e office a t th e an n u al m eeting in Des
Moines th is m onth, for th e 1943-1944 term , and th e fedora of R alph R. B rubacher,
pi esident of th e Toy N ational B ank, Sioux City, w ho seeks th e office startin g
nex t year, for th e 1944-1945 regim e.
Both Mr. Jo h n so n and Mr. B rub ach er have served m any tim es on com m ittees
of the Iow a B ankers A ssociation and its several subdivisions, and both have the
unqualified endorsem ent of th e G roups to w hich th ey belong.
(b) S. R. DeCou, W oodbine, C hairm an
I. B. A., “C om m ittee on G overnm ent
C om peting A gencies,” “R eport of I. B.
A. C om m ittee”; (c) Oluf Gandrud, B en­
son, M innesota, C hairm an, “I n te r­
state Com m ittee on G overnm ental
C om petition” of C entral States Con­
ference (com posed of 14 N o rth C entral
S tate B ankers A ssociations), “The
B ank ’s Place in A g ricu ltu ral C redit”;

(d) W. L. Sm ith, Lake Geneva, W is­
consin, C hairm an of “Com m ittee on
Socialized C redit” of W isconsin B ank­
ers A ssociation, “The PCA System,
B ank C om petitor”; (e) E. W . R ossiter,
H artin gton, N ebraska, form er ch air­
m an “Com m ittee on Socialized Com­
p etitio n ” of N ebraska B ankers Asso­
ciation, “The C hallenge—L et’s Meet
I t ”; (f) Ben S. Sum m erw ill, Iowa City,

Speakers — K. J. M cDonald, E stherville, “U sing an A g ricu ltu ral A djusted
N et W orth S tatem en t”; W. G. Jackson,
E arlh am (Pop. 865), “A P ay As You
Go Check System As It O perates in
a B ank of Our Size”; S. C. K iinni, Den­
ver (Pop. 500), “W hat Is the Actual
Cost P er Day to O perate a B ank of
Say $700,000 D eposits?”; John H.
Crocker, D ecatur, Illinois, “The De­
catu r (111.) Service Charge P la n ”;
M. W. E llis, Iowa S u p erin ten d en t of
B anking, Des Moines, “R iskless Addi­
tions to the N et Profits of Your B ank
in W artim e”; W . C. R em pfer, Parkston, South D akota, “A D ifferent Ap­
proach to D eterm ine the O perating
Costs of Our R ural B anks”.
Convention ad jo u rn m en t—4:45 p. m.

New O ffice r A t
Iowa Falls Bank
W alter A. R oberts, form erly of Ce­
dar Rapids, N ebraska, has become
affiliated w ith th e Iow a F alls (Iow a)
State B ank in th e capacity of vice
presid en t and cashier. He replaces
B. L. Johnson.

S carborough ^ C ompany
First National Bank Building, Chicago

Northwestern Banker September 1943


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Federal Reserve Bank of St. Louis

Horace A. Smith, Iowa Representative
Des Moines, Iowa


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Federal Reserve Bank of St. Louis

84

—•

IOWA

NEWS

•-

Thornbury Named
To D irectorate

Swale Enters School of
M ilitary G overnm ent

R obert E. T h o rn b u ry , for m ore th a n
26 y ears w ith th e M arshalltow n T row el
W orks and now se c re ta ry -tre a su re r of
th a t com pany, w as elected a directo r
of th e F id elity Savings B ank of M ar­
shalltow n, Iowa, to succeed A. A.
Moore, w ho died on Ju ly 11th, accord­
ing to an anno u n cem en t by b ank offi­
cials.
Mr. T h o rn b u ry is a stockholder in
th e b ank and has been long active in
M arshalltow n business circles.

Douglas G. Swale, vice p resid en t of
th e F irs t N ational B ank of M ason City,
Iowa, has gone to Camp Custer, M ichi­
gan, to a tten d the indoctrination school
th e re as a captain in th e provost m a r­
sh al’s division of th e U. S. Army.
A fter th e indoctrination course he is
to be assigned to a school of m ilitary
gov ernm ent a t e ith er the U niversity of
Chicago or P ittsb u rg h U niversity for
a 90 day course of in struction, he w as
inform ed.

Follow ing his schooling he w ill go
into foreign service w ith th e Allied
m ilitary governm ents of occupied te r­
ritories.

Hits Million Mark
K ern d t B rothers Savings Bank, L an ­
sing, Iowa, has joined th e $1,000,000
list of Iowa bankers. Total resources
have recen tly passed th e m illion m ark.
Ow ners of the b ank continue to oper­
ate a m ercantile business and elevators
in Lansing, know n as G. K ern d t &
Bros., and established 87 y ears ago.
The b ank w as operated as a priv ate
in stitu tio n in re a r of store u n til 1908,
w hen it w as organized as a state bank,
all th e stock being held by th e family.

Pocahontas Bank Rc-elects

W henever You

Sioux City
The Toy National Bank
A r e in

M ake

Your Headquarters
W e are p ro u d of o u r n u m ero u s
N orthw est Iow a, South D akota,
and N e b r a s k a correspondents.
W e enjoy being a B a n k e r’s B ank.
O F F IC E R S
R . R. B r u b a c h e r
P r e s id e n t
J. W . V an D yke
V ic e P r e s id e n t

E . E . E r ic k s o n
V ic e P r e s i d e n t a n d C a s h ie r

E . A. H o ffm a n
V ic e P r e s id e n t

C. A . J o h n s o n
A s s is ta n t C a s h ie r

E . H . S p ie c k e r
V ic e P r e s id e n t

J . D . S h in k le , J r .
A s s i s t a n t C a s h ie r

^ C a p t. J . W m . V a n D y k e
A s s i s t a n t C a s h ie r

C a r le to n C. V a n D y k e
A s s is ta n t C a s h ie r

* O n le a v e o f a b s e n c e w h ile s e r v in g w ith th e a r m e d fo rc e s .

‘This year, more than ever be­
fore, we pledge our support to
the war effort and America’
M e m b e r F ed e ra l D e p o s it Insu rance C orporation

Northwestern Banker September 1943

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Federal Reserve Bank of St. Louis

W illis Rich of F o rt Dodge, Iowa, w as
re-elected presid en t of th e Pocahontas
S tate B ank at th e an n u al stockhold­
ers m eeting. O ther officers w ere also
re-elected. T hey are: L. E. Eckerson,
vice presid en t and cashier; E dm und
Carmody, a ssistan t cashier; M argaret
Lorge and K eith Oleson, tellers; W illis
Rich, L. E. E ckerson, E dm und Car­
mody, L. S. H om an, N. B. N orm an and
B ernard Bohlke, th e la tte r th ree of
Rem sen, w ere renam ed directors.

Stockholders Hold
Annual Meeting
Stockholders of the F irs t T ru st &
Savings Bank, A nthon, Iowa, held th e ir
an n u al m eeting recen tly a t th e bank.
E arl A. Hoffman, presid en t of the
bank; R. R. B rubacher, p resid en t of
th e Toy N ational Bank; E. H. Speicker,
vice presid en t of th e F a rm ers Loan &
T ru st Company, and Carleton Van
Dyke, a ssistan t cashier of th e Toy N a­
tional Bank, m ade up th e Sioux City
delegation from th e p aren t bank, the
Toy N ational, p resen t at th e m eeting.
The y e a r’s w ork w as review ed, after
w hich th e stockholders nam ed Mr.
Van Dyke to th e board of directors,
w ith th e o ther directors being re ­
elected.
A fter ad jo u rn m en t of the stockhold­
e rs’ session, D irectors A rnold P e te r­
sen, F ra n k Gothier, P eter B. Jan sen
and H om er M. Boyd of A nthon and
Mr. H offm an and Mr. Van Dyke, w ho
m ake up th e board, th en m et and
elected th e follow ing officers: E arl A.
Hoffman, president; A rnold W. P e te r­
sen, vice president, and H om er M.
Boyd, cashier.
E x p e r ie n c ed bank m an in city and coun­
try banks desires connection in small
country bank in good farming commu­
nity. Can invest $5,000. Age 51, mar­
ried, Protestant. Available after Decem­
ber 1. Good, clean record. Write R. W.
M., care Northwestern Banker.

85

Since

1902

the

W aterloo

Savin gs

Bank h a s provided sound and continu­
ous service to firms and individuals w ho

Our

h a v e united to m ake the W aterloo trade
territory outstanding.
scientious

and

In the sa m e con­

friendly

m anner, w e

h a v e served a s W aterloo correspondent
for m an y Iow a banks.

ff st

Today w e are p la y in g a constructive
part in the w ar effort and w e w elcom e

1

the opportunity to cooperate with banks
w hich m a y n eed help in m eeting unusu­
al d em an d s from their ow n custom ers.

Year

W e truly appreciate the opportunity
to serve you in W aterloo.

O ffic e r s
H. G. N orthey , P resident
R. W. W aite , Vice P resident
C arleton S ias , Vice President
J. J . M iller , Cashier
F. R. L a B arre , Asst. Cashier
V. S palding M iller , Asst. Cashier
O liver J. S c h u tte , Asst. Cashier

W A T E R L O O SAVINGS B A N K
Waterloo, Iowa
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
M e m b e r F e d e r a l R e s e r v e S y s te m

Northwestern Banker September 19k3

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Federal Reserve Bank of St. Louis

86

C ity Bankers W ho A re Planning to A ttend
the Meeting in Des Moines
E Iow a C onvention, to be held
T HSeptem
th is y e a r on Sunday and M onday,
ber 5 and 6, is alw ays well
atten d ed by b an k ers rep resen tin g in ­
stitu tio n s in th e larg er cities both
w ith in and outside of Iowa, and m ore
th a n sixty b an k ers have signified th e ir
in ten tio n of com ing to th e Iow a m eet­
ing. Of course w ith th e m eeting held
in Des Moines, b a n k ers from th e Capi­
tal City w ill tu rn out 100 p er cent to
welcome th e ir m any friends from n e a r
and far. B ankers from th e larg er
tow ns p lanning to atten d , including
Iow a tow ns, are as follows:

Cedar Rapids
M erchants N ational Bank: S. E. Co­

quillette, president; H. N. Boyson and
M arvin R. Selden, vice presidents.
P eop les Savings Bank: F ra n k C.
W elch, president.

Chicago
A m erican N ational Bank & Trust
Company: Charles C. K ining, vice

president; Jam es H. Clarke, a ssistan t
vice president.
City N ational Bank & Trust Com­
pany: W illiam H. Miller, vice p resi­

dent; L. K. Billings, a ssista n t vice
president.
C ontinental Illin o is N ational Bank
& T rust Company: N orm an B. Shaffer,

vice president; L ester T. Boe, vice
president; B. J. M aiworm , a ssista n t
cashier; and A rth u r J. F rey, assistan t
cashier.
D rovers N ational Bank: George A.
Malcolm, vice p resid en t and cashier;
Dale E. C ham berlin, vice president;
and F ra n k M. Covert, a ssista n t cash­
ier.
F irst N ational Bank: Jo h n J. A nton,
vice p resident; Jo h n H. G rier and
V erne L. B artling, assista n t vice p resi­
dents; and L eroy F. W in terh alter,
a ssista n t cashier.

H a r r i s T r u s t & S a v i n g s Bank:

C harles A. Carey, a ssistan t cashier.
L ive Stock N ational Bank: A. S. Bagnail, vice president; P aul T. Betz, vice
president; and Rex Van A lstine, assist­
a n t cashier.
N orthern T rust Company:
L aw ­
rence A. Kempf, second vice president;
and Jo h n V. Haas, a ssistan t cashier.
D eL uxe Check Printers: Jo h n C. L a r­
sen, Iow a sales rep resentative.
Scarborough & Company: H en ry A.
Scarborough, president; H a rry F. 01lendorf, Chicago; and H orace A. Sm ith,
Des Moines.

Clinton
City N ational Bank: B ruce Tow n­
send, executive vice president; E. H.
Jo rg en sen and B ruce Bickle, a ssistan t
cashiers; and F ra n k C. H aun, teller.

Iowa City
Iow a State B ank & T rust Company:

Ben S. Sum m erw ill, president; M. B.
G uthrie, cashier; and W. F. Schm idt,
a ssistan t cashier.

Kansas City
City N ational Bank & T rust Com­
pany: Jam es F. M cPherson, cashier.
Comm erce T rust Company: F re d B.

Brady, vice president; and R ichard L.
D unlap, assistan t vice president.

Milwaukee
F irst W isconsin N ational Bank: Don­

ald A. H arper, assistan t vice president.

Minneapolis
F irst N ational Bank: J. J. Maloney,
N orthw estern N ational Bank: D. E.

Northwestern Banker September 19^3

Public N ational B ank & T rust Com­
pany: D aniel F. O’M eara, vice p resi­

dent; and Jo h n T. B arry, assistan t
vice president.

Omaha
F irst N ational Bank: C. D. Saunders,

vice president; and E. F. Jepsen, assist­
a n t cashier.
L ive Stock N ational Bank: Alvin E.
Johnson, president; H. C. K arpf and
R. H. K roeger, vice presidents; Paul
H ansen, cashier; H. H. E chterm eyer,
W. Dean Vogel, and E a rl R. Cherry,
a ssistan t cashiers.
Omaha N ational Bank: R. R. Ridge,
Jo h n A. C hangstrom and J. H. Moore,
vice presidents; and A. J. Rhodes,
a ssistan t cashier.
Stock Yards N ational Bank: W. A.
Sawtell, president; and Jo h n McCumber, cashier.
LTnited S tates N ational Bank: A ustin
L. Vickery, cashier; and Nels L. Sholin,
a ssistan t cashier.
U nion Bank & Trust Company: H. L.

Pollard, vice president; and Max von
Schrader, cashier.

Crouley, a ssistan t cashier.

New York
C entral H an over B ank & Trust Com­
pany: F. M. H am pton, a ssistan t secre­

St. Louis
F irst N ational Bank:

F ra n k Fuchs,

assistan t cashier.

tary.
Chase N ational Bank: E a rl R. Gafford, second vice president; and Louis
Jacoby, Chicago correspondent.

M ercantile-Com m erce B ank & Trust
Company: Leo D. Kelly, vice president.

(T u rn to page 90, please)

t L Company

First National Bank Building. Chicago


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Federal Reserve Bank of St. Louis

C ontinental Bank & Trust Company:

E ugene L. Voss, a ssistan t vice p resi­
dent.
G uaranty T rust Company: H. L iv­
ingston Schw artz, Jr., assistan t tre a s­
urer.
M anufacturers Trust Company: R ay­
m ond A. Lockwood, vice president;
and W illiam B. W hitm an, assistan t
secretary.

Ottumwa

a ssistan t cashier.

S carborough

C hem ical B ank & T rust Company:

H. M. T u rn er, vice president.

Horace A. Smith, Iowa Representative
Des Moines, Iowa

A i ert

Service
...a n d complete facilities
to help Iowa Bankers
in m eeting t o d a y ’s dem a n d s for e x t e n s iv e
and u n u su al services.

ALLEY
AVING
BANK

Frederick M. Morrison, President
Winfield W . Scott, Vice President
J.
R. Astley, Cashier
Edward P. Kautzky, Asst. Vice Pres.
Roy Huber, Assistant Vice President
Frank M. Thompson, Cashier
Ray Thompson, Assistant Cashier

D es M oines
M em ber


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Federal Reserve Bank of St. Louis

F e d e ra l

D e p o sit

In s u ra n c e

C o r p o r a t io n

Northwestern Banker September 19b3

A d v e rtise m e n t

"Roll of Honor" Banks
...

i o

w

...

a

It is an honor to be listed among the H O N O R R O L L B A N K S. It indicates that the
bank has SURPLUS and U N D IV ID ED PROFITS equal to or greater than its capital

The banks listed on this page are some of Ioiva’s outstanding "Honor Roll Banks. By
careful management and sound banking they have achieved this enviable position. These
banks will be especially glad to handle any collections, special credit reports or other
business in their communities which you may entrust to them. Correspondence is invited.
TOWN

Ackley............................. Ackley State Bank.....
Alburnett........................ Alburnett State Bank
Andrew......... .................. Andrew Savings Bank
Atlantic...........................Atlantic State Bank...
Atlantic...........................Whitney Loan & Trust Co.
Audubon......................... First State Bank.................
Aurelia............................First Trust & Savings Bank
Bloomfield.......................Davis County SavingsBank
Boyden............................ Farmers Savings Bank
Burlington......................Burlington Savings Bank......................
Carlisle............................Hartford-Carlisle Savings Bank............
Carroll............................. Carroll County State Bank...................
Carroll.............................Commercial Savings Bank.....................
Cedar Rapids................. United State Bank...................................
Charles City.................. First Security Bank & Trust Company
Clarence..........................Clarence Savings Bank............................
Colfax..............................First National Bank...............................
Coon Rapids............... Iowa Savings Bank..................................
Council Bluffs................ Council Bluffs Savings Bank.............
Denver......... ................... Denver Savings Bank.............................
Des Moines.................... Bankers Trust Company........................
Des Moines....................Valley Savings Bank...............................
Donahue......................... Donahue Savings Bank.................
Eldora.............................Hardin County Savings Bank..............
Exira...............................Exchange State Bank.....................
Farley..............................Farley State Bank..................................
Farnhamville.................Security Savings Bank.............................
Gladbrook........................State Bank....... .......................................
Grand Mound................ Union Savings Bank...............................
Grinnell.......................... Poweshiek County National
Bank....
Hills..................................Hills Bank and Trust Company..............
Humboldt....................... First National Bank................................
Independence................. Farmers State Savings Bank..............
Lansing............................Kerndt Brothers Savings Bank...........
McGregor.......................First State Savings Bank...............

Northwestern Banker September 19^3


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

C A P IT A L

O F F IC E R

BANK

SU RPLU S
P R O F IT S
$

54,000

S. L e k w a ................................ ___ $
J . J . D o la n ..... ................................. .......
.E b e r V. F l i n t ............................... .......

50,000
25,000

27,000

C. D. E m m e r t ................................ .......
R. L. S h a n n o n .............................. . .......

50.000

153,000

50.000

86,000

,C. E . N e ls o n .................................. ........
H . H . D e y lo ff............................... .......

50.000

77,000

25,000

54,000

40,000

50,000

.H .

E d . W . S h a w ......................... — .......
N . R o u w e n h o r s t................. .................
.W e s le y H . S w ile r......................

25,000

35,344

25,000

36,000

100.000

270,000

25,000

60,300

75,000

118,000

F r a n c is T. M a h e r ..............................

50.000

81,000

F r a n k G. K a n a k ............. .......... ........

50,000

65,000

100,000

112,000

.A rn o ld R u t h e r ............................ ........

25,000

57,000

11. E . B e ll.................. ................... ____
.W a lte r B u e n n e k e .................. . ........

25,000

82,000

.G . D. S c h o o le r........................... ........
C. J . H e s s .......................................

W . A. H e r b r e c h ts m e y e r .......

,E . H . S p e tm a n .............................

25,000

26,700

150,000

365,288

25,000

40,000

J . N e v in L e e ................................. ........ 1,000,000
200,000
F . M. T h o m p s o n ..................... ........

1,261,333

S. C. K im m ........... .......... ............. ........

349,000
30,000

.W a lt e r E . P a u s t i a n ................ .........

20,000

H o w a rd C a lfe e ............................ .........
.0 . K . C u llin g s ............................ .........

50,000

75,000

25,000

28,000

F . S. F e r r i n g ........ ..................... .........
0 . W . M a d s o n ............................ .........
.L a v e r a M. B o ll......................... ........
,L . J . S to te s b e r y .......................... .........

25,000

40,904

25,000

44,000

50.000

67,000

25,000

35,000

65,000

93,000

R. S. K in s e y ................................ ........
A . F . D ro ll................... ............... .........

25,000

31,000

B. B. W a ts o n ..............................

50,000

165,800

100,000

118,872

30,000

53,000

20,000

64,233

,E . F . S o r g .....................................
G.

M.

......

K e r n d t ............................

,J . J . G o h e e n .................. .............. .........

89
A d v e rtise m e n t

"Roll of Honor" Banks
. . .

i

o

w

a

...

It is an honor to be listed among the H O N O R R O L L B A N K S. It indicates that the
bank has SURPLUS and U N D IV ID ED PROFITS eqaul to or greater than its capital

The banks listed on this page are some of Iowa’s outstanding “Honor Roll” Banks. By
careful management and sound banking they have achieved this enviable position. These
banks will be especially glad to handle any collections, special credit reports or other
business in their communities which you may entrust to them. Correspondence is invited.
SURPLUS
TOWN

BANK

Madrid.............................City State Bank......................................
Manchester.....................Farmers & Merchants Savings Bank
Manly.............................. Manly State Bank..................................
Mason City.....................United Home Bank & Trust Company
Miles................................Miles Savings Bank................................
Mt. Ayr...........................Security State Bank..............................
Muscatine....................... Central State Bank................................
Nevada............................ Nevada National Bank.........................
New Sharon....................Taintor Savings Bank............................
Newton............................Jasper County Savings Bank..............
Oakland...........................Citizens State Bank................................
Osage...............................Osage Farmers National Bank...........
Ottumwa......................... Union Bank & Trust Company...........
Palmer............................. Palmer State Bank..................................
Pella.................................Pella National Bank..............................
Pomeroy.......................... Pomeroy State Bank..............................
Primghar........................ First National Bank..............................
Princeton.........................Farmers Savings Bank..........................
Sac City.......................... Citizens Savings Bank..........................
Sac City.......................... Sac City State Bank.
Sheffield...........................Sheffield Savings Bank
Shelby..............................Farmers Savings Bank.................
Sioux City.......................Woodbury County Savings Bank
Soldier............................. Soldier Valley Savings Bank
Spragueville................... Farmers Savings Bank..........
Stanwood........................ Union Trust & Savings Bank
Storm Lake.................... Citizens First National Bank....
Swisher........................... Swisher Trust & Savings Bank
Tipton..............................Tipton State Bank
Union...............................Union-Whitten State Savings Bank.
Walnut............................ Walnut State Bank..............
Waterloo......................... National Bank of Waterloo.
Watkins...........................Watkins Savings Bank
Webster City.................. First State Bank...........
Wellsburg........................Peoples Savings Bank
Woodbine....................... First National Bank.....

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

C A P IT A L

O F F IC E R

P R O F IT S

J . H . W h ite ............................ ...............

25,000

32,000

,W . W . M a tth e w s ................. ...............

75,000

96,900

A . M. B a r th .......................... ...............

50,000

50,327

R. A . P o t t e r ..........................................

100,000

103,789

J . R. W itz ig m a n

30,000

39,000

C a rs o n

W illia m s ................................

30,000

62,816

.G len D o w n in g ........................ ...............

125,000

144,000

.L. R. B a s s e t ..........................

50,000

84,000

.0 . H . P a t h o v e n ...................

25,000

51,500

100,000

409,000

R a y 0 . B a ile y ...................... ..............
,D . F . B u s s e ........................... ...............

40,000

52,000

.A . T. A ltic k ........................... ...............

100,000

129,000

.11. L. P o l l a r d ........................ ..............

300,000

370,000

.V. H . R e id .............................
E . S. C ook............................... ...............
J o h n F . G u tz ........................

15,000

18,000

50,000

99,032

25,000

29,000

.F . C. B o rd e w ic k .................... ...............

50,000

70,000

Z. G. S u i t e r ........... ............... ...............

25,000

27,000

J . P. J o n e s ............................

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

40,000

53,000

A . 0 . A n d e r s o n ................... ...............

50,000

75,000

H. 0 . W e b b ........................... ...............

25,000

35,000

,L. 0 . S to k e r ........................... ...............

25,000

54,000

,C. T. M c C lin to c k ................. ..............

100,000

185,358

.E m il C. J u n g e r ................... ...............

20,000

52,000

,W . L. W h ite .......................... ...............

20,000

25,000

,C. H . H a e s e m e y e r ............... ...............

30,000

30,000

G eo. J . S c h a lle r ............ ....... ...............

75,000

280,000

C h a s. J . K o s s ........................ ..............

30,000

30,609

J . W . E d g e .............................

52,500

100,090

C. F . L o n g ............................. ..............

25,000

39,000

.J. W . B o w m a n ...................... ...............

25,000

25,478

R. L. P e n n e ........... ............... ...............

250,000

444,000

.A. J . S c h m u e c k e r...............

20,000

23,000

.B. P . S t. J o h n ........................ ...............

50,000

112,000

G. H . B a lla r d .................. .

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

25,000

30,000

S. R. D e C o u ........................... ...............

50,000

136,119

Northwestern Banker September 19^3

90

-•
SEE TH EM A T T H E IO W A
C O N V E N T IO N
(C ontinued from page 86)

St. Paul
St. P aul Term inal W arehouse Com­
pany: T. S tanley Jackson, m anager

field w a r e h o u s i n g d i v i s i o n ; and
Thom as C. Cannon, d istric t m anager,
Des Moines.
A m erican N ational Bank: G. J. J o h n ­
son, senior vice president.

IOWA

NEWS

—

Sm ith, president; and J. C. Moore, vice
president.
L ive Stock N ational Bank: C. L.
F redricksen, president; and M. A. W il­
son, vice president.
S ecu rity N ational Bank: C. R. Gos­
sett, p resident; and B. M. W heelock,
vice president.
Toy N ational Bank: R. R. B rubacher,
president; E. E. E rickson, vice p resi­
dent and cashier; and C. A. Johnson,
a ssista n t cashier.

Sioux Falls
N orth w est S ecu rity N ational Bank:

South St. Paul
Stock Yards N ational Bank:

R. L.

R alph M. W atson, president.

Waterloo
N ational Bank of W aterloo: Charles

S. M cK instry, vice president; R. L.
Penne, cashier; A. J. B urk, R. L. Kil­
gore and H. F. Hoffer, assistan t cash­
iers.
W aterloo Savings Bank: R. W. W aite,
vice president; and J. J. M iller, cashier.

Q ualifies fo r Minute
Man Flag
The F irs t N ational B ank of P erry,
Iowa, is th e fo u rth P e rry concern to
qualify for th e T re a su ry ’s M inute Man
“T ” flag by v irtu e of em ployes in vest­
ing a t least 10 p er cent of th e ir pay in
W ar Stam ps and Bonds.
A recen t le tte r to th e ban k from the
ch airm an of th e T re a su ry ’s payroll al­
lotm ent division congratulated the
bank and said th e goal reached by the
local concern w as “very g ratifying.”

Better Y a rd s, Landscapes

For Prom ptness
FOR EIGHTY YEARS prom pt*
n ess h as m a rk ed th e serv ice
to c o r r e s p o n d e n t b a n k s o f
T h e First o f C h ic a g o .

Today

o u r B a n k a n d B a n k e r s D iv i­
sio n is h a n d lin g a n a tio n -w id e
b u sin ess, a n d in v ite s a c co u n ts
u p o n a basis th a t so lo n g has
p r o v e d m u tu a lly satisfactory.

The First National Bank
of Chicago
Building with Chicago Since 1863

MEMBER

FEDERAL

D E P O S IT IN S U R A N C E

Northwestern Banker September 19b3


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

C O R PO R ATIO N

To encourage m ore atten tio n being
given to landscaping of yard s of ru ra l
and tow n properties, th e Miles Savings
Bank, Miles, Iowa, has arran g ed to
give prizes to hom e ow ners w ho have
produced b est resu lts in beautifying
th e ir yards, according to an announce­
m ent m ade by Jo h n W itzigm an, cash­
ier of th e bank, at th e 20th annual
4-H Club Baby Beef Show.
Mr. W itzigm an said th a t th e direc­
tors of th e b ank had decided to give
a S h o rth o rn heifer calf to th e farm er
in th e co u n try w ho has th e “best land­
scaped y ard around his hom e,” and a
$25 W ar Bond to th e one in tow n w ith
th e best landscaped yard.
To encourage th e raisin g of dualpurpose stock on farm s in th a t vicinity,
th e Miles b an k is offering a purebred
A berdeen A ngus bull calf to th e farm er
w ho is m aking th e g reatest effort and
progress in increasing th e quality of
his cow herd.

Resigns Position A s
A ssistant C ash ier
At th e reg u lar m eeting of th e board
of directors of th e F a rm e rs Savings
B ank of D anbury, Iowa, th e w ritten
resignation of F ra n k J. W essling as
a ssistan t b ank cashier w as accepted.
F ra n k says his plans for th e fu tu re
are indefinite b u t for th e p resen t w ill
look afte r his extensive insurance
business, being a special rep resen ta­
tive of th e New Y ork Life Insurance
Company.

91

------------------------------- •

IOWA

NEWS

•

New Bank O pens In W aterloo
LANS are now com plete for th e
P
form al opening of W aterlo o ’s new
bank, th e Peoples Savings B ank, W at­
erloo, Iowa, Septem ber 15th. The new
b an k is located on th e g ro u n d floor of

w ith capital stock of $100,000, and w ith
$25,000 su rp lu s and $10,000 undivided
profits. It is strictly a local project,
backed by W aterloo business and pro­
fessional m en, w ith the exception of
its president, George E. Allbee, w ho
m oves to W aterloo from M ason City,
Iowa, w here he has been supervisor
of branch offices and public relations
council for the F ed eral D iscount Cor­
p oration of Dubuque. The only two

non resid en t directors and stockhold­
ers of th e ban k are Jo h n H. Jan sen
and R. L. Stotesbery, presid en t and
vice p resid en t of th e F ed eral D iscount
C orporation at Dubuque.
T he official lineup of th e Peoples
Savings B ank includes: P resident,
George E. Allbee; vice president, J.
P eter Olesen, W aterloo co ntractor and
real estate m an, and cashier, W illiam
A. Dewees, secretary and m anager of
th e W aterloo M orris P lan Company.
The directors of th e new ban k in ­
clude M essrs. Allbee, Olesen and De-

Produce Shipments
M any of your Sioux City items consist of prod­
uce shipm ents. These items should be h an d led
quickly a n d intelligently. Our experience an d
G EO R G E E. A L L B E E
P r e s id e n t

th e Black H aw k B uilding at W est 4th
and Com m ercial S treet. The B lack
H aw k B uilding is ow ned by th e Black
H aw k C orporation, headed by J. P eter

know ledge qualify us to do this.
You will find a satisfactory correspondent
relationship here at this b ank in Sioux City.

A . G. S am , P r e s id e n t
J. P. H a in e r , V ice P r e s id e n t
J . R . G ra n in g , A s sista n t C a sh ie r
F r itz F ritz s o n , \ d c e P re s , a n d C a s h ie r
E . A. J o h n s o n , A s sista n t C a sh ie r
J . T . G ra n t, A s sista n t C a s h ie r
W . F . C o o k , A u d ito r

Member F ed eral D eposit Insurance C orporation

NATIONAL BANK
J.

PETER OLESEN
V ic e P r e s id e n t

Olesen, w ho is vice president and a
d irecto r of th e new bank, and has been
leased to th e Peoples Savings Bank.
The new bank is s ta rtin g business

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

v c

Northwestern Banker September 19b3

92

•
wees, M essrs. Ja n se n and Stotesbery,
and th e follow ing W aterloo men: W h it­
ney Gilliland, attorney; Dr. A. A. Hoff­
m an, physician and surgeon; R oger C.
M iller, se cretary -treasu rer and m an ­
ager of th e C rystal Ice and F u el Com­
pany, W aterloo.
Mr. Allbee has been a resid en t of
M ason City for th e p ast 16 years. He
attend ed G rinnell College and is a
veteran of th e N avy in W orld W ar I.
A fter th e w ar he w as cashier a t St.
A nthony, Iowa, for th e St. A nthony
Savings B ank for seven years. He w as
the general m an ag er of th e C. L. Pine

IOWA

NEWS

•

Loan and In v estm en t Com pany of
M ason City for 12 years, and has been
w ith th e F ederal D iscount Corporation
th e p ast four years. T he F ed eral Dis­
count C orporation, w ith hom e office in
D ubuque, has autom obile loan and
sm all loan branches in Iowa, Illinois,
W isconsin and M innesota.
Mr. Allbee served five y ears as presi­
den t of the Iowa A ssociation of P e r­
sonal F inance Com panies and tw o
term s as secretary. F o r five years he
served on th e N ational Council of the
A m erican A ssociation of P ersonal F i­
nance Companies.

Mr. Dewees, th e new cashier, w as
a ssistan t cashier of th e old Iowa State
B ank of W aterloo for six y ears and,
afte r serving as second lieu ten an t in
W orld W ar I, he w as w ith the W ater­
loo E lectrical Supply Company, and
w as for six y ears a ssistan t cashier of

W IL L IA M H. D E W E E S
C a s h ie r

Photo by U. S. Army Signal Corps

Under the graceful Arm y and N a v y "E" Pennant floating proudly
over the FISHER COMPANY, C harles City, is a group of lo yal
em p lo y es w h o se skill and patriotism m ad e the "E" A w ard possible.
A nd back of this A w ard, too, are 72 y ea rs of service in the Bank
Fixture field. W hile w e are n ow fully e n g a g e d in W ar Production,
the Fisher C om pany extends greetings to its m an y banker friends
and w e hop e to b e back help in g yo u so lv e your building problem s
w h en p e a c e com es on ce more.

TH E

FISHER COMPANY
Established 1870

C H A R L E S CITY, I O W A
Bank Fixture Specialists

the Pioneer N ational Bank. He has
been M orris P lan m anager a t W aterloo
since 1930. Mr. Olesen, vice president,
is well know n in n o rth e a ste rn Iow a as
a building and construction m an, b ut
w ill not be an active officer of the
bank.
W ork on rem odeling the Black H aw k
B uilding is n earin g com pletion as this
issue goes to press. The b ank has the
ground floor location w ith 1,600 square
feet of floor space, exclusive of the two
v au lts on th a t floor. W oodw ork on the
in terio r is of w aln u t w ith low type fix­
tures. The b ank has a balcony of 320
square feet.

Meeting in O m aha
A jo in t m eeting, arran g ed earlier
b u t postponed, w as held on A ugust
20th by rep resen tativ es of th e Iowa
B ankers A ssociation w ith N. G. Kraschel, general agent, F arm C redit Ad­
m inistration, Omaha, N ebraska. Rep­
resen tativ es of the N ebraska B ankers
A ssociation w ere likew ise invited by
Mr. K raschel and officers of the Iowa
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

Northwestern Banker September 1943


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

93
B an k ers A ssociation to m eet w ith
them . All w ere luncheon guests of
Mr. K raschel and o th er officers of the
F a rm Credit A d m in istratio n at noon at
th e Om aha A thletic Club. The m eet­
ing w as an e n tirely inform al one to
discuss v arious phases of gov ern m en t
com petition w ith b an k s in th e field of
a g ric u ltu ra l credits. Those w ho a t­
tended th e jo in t conference w ere as
follows:
S. R. DeCou, chairm an, W oodbine;
N. P. Black, P erry; F ra n k C. W elch,
Cedar Rapids; C. C. F ritc h e r, Storm
Lake; E. E. M anuel, George; B. A. Gronstal, president, Council Bluffs; A T.
D o n h o w e, re tirin g p resident, Des
Moines; F ra n k W arn er, secretary, Des
Moines; M. W. Ellis, su p e rin te n d e n t of
banks, Des Moines.
F ro m th e N ebraska B an k ers Asso­
ciation:
Jam es D. M illiken, acting president,
F rem ont; W. B. H ughes, secretary,
Omaha; E. W. R ossiter, m em ber, exec­
u tiv e council, H artin g to n ; R obert Manley, Omaha.
The N ebraska and Iow a com m ittees
held a jo in t m eeting in th e h ead q u ar­
te rs of th e N ebraska B an k ers Associa­
tion before atten d in g th e m eeting w ith
Mr. K raschel. F ollow ing th e m eeting
w ith th e FCA officials, th e Iow a com ­
m ittee held a m eeting of its ow n at
P re sid e n t B. A. G ro n stal’s B ank, th e
Council Bluffs Savings B ank in Coun­
cil Bluffs. In th e evening all of th e
Iow a re p re se n ta tiv es w ere th e d in n er
guests of P re sid e n t G ronstal at Coun­
cil Bluffs.

Union Bonn
nnn T r u s t
Comrnnv
OTTURI UJfl
Over 65 Vears
of Service

OFFICERS
PR A N K VON SCH R A D ER
C h a ir m a n of B o a r d a n d P r e s id e n t
H . L. PO LLA RD
V ic e P r e s id e n t
R. W . FU N K
V ic e P r e s id e n t
M AX VON SC H R A D ER
C a s h ie r
C. P . G L E N N
A s s is ta n t C a s h ie r
W . C. M I L L E R
A s s is ta n t C a s h ie r
F R E D D IM M IT T
A s s is ta n t C a s h ie r
FR A N K M. P O L L A R D
A s s is ta n t C a s h ie r
C. G. M E R R I L L
T r u s t O fficer

By keeping constantly in touch with all the impor­
tant developm ents in this a re a we are able to
provide banks a n d bankers with a very helpful
correspondent service in southern Iowa w here we
respectfully solicit your business.

Bock Returns to Des Moines
Lloyd R. Bock, vice p resid en t of th e
B enton C ounty B ank & T ru st Com­
pany, V inton, Iowa, has re tu rn e d to
Des Moines to becom e a p a rtn e r in th e
firm of A llen & Company, certified p u b ­
lic accountants, 815 H ubbell Building.
Mr. Bock w as engaged in public ac­
counting p ractice in Des M oines for
several y ears p rio r to his association
w ith th e B ren to n State B ank at Dallas
C enter, Iowa, and th e B enton C ounty
B ank & T ru st Company.
A nnouncem ent w as also m ade th a t
Louis L. N ussbaum , w ho has been
associated w ith Allen & Com pany for
th e last year, has also been ad m itted to
p a rtn e rsh ip in th e firm.

TOTAL
RESOURCES
OVER
$ 12, 000,000

Banks Sold or Bought!
quietly, quickly and in a personal manner

JAY A. W ELCH

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

BA N K BROKER
Haddam, Kansas
“35 Years Practical B a n kin g E xp erien ce”


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Federal Reserve Bank of St. Louis

Northwestern Banker September 19b3

94

IOWA NEWS
Recovering From Illness

PROGRAM
Iowa Bank Auditors and Comptrollers
Iowa Junior Bankers
H E a n n u al m eeting of th e Iow a
A ssociation of B ank A uditors and
C om ptrollers, and th e an n u al m eeting
of th e Iow a Ju n io r B ankers Associa­
tion, will be held jo in tly on th e a ft­
ernoon of Sunday, Septem ber 5th,
sta rtin g a t 1:15. T here are no o th er
convention sessions on th is afternoon,
and all convention re g istra n ts are in ­
vited to atte n d th is m eeting.
T he p rogram of sp eakers and th e ir
subjects is as follows:
E. F. B uckley, P resident, Des Moines
Clearing H ouse A ssociation; B. A.
Gronstal, P r e s i d e n t , Iow a B ankers
A ssociation, Council Bluffs; Don C.
W itt, S ecretary-T reasurer, Iow a Asso­
ciation of B ank A uditors and Comp­
trollers, Oelwein; S. J. K ryzsko, M em­
ber, E xecutive Council of A. I. B.,

T

W inona, M innesota, “The A. I. B. in
W artim e”; L. Call D ickinson, wellknow n ta x attorney, Des Moines, w ill
talk and answ er questions on th e w ith ­
holding “C u rrent T ax P aym ent Act
of 1943”; an educational “R ation B ank­
ing P an el” discussion by Jam es R.
Brow n, Des Moines, Leader; B lanche
L. S teven s, P erry; M. J. D w igans, Des
Moines; B. P. Olsen, M uscatine; Frank
J. Tam se, Des Moines; J. M. K am erick,
State OPA H ead of R ation B anking,
Des Moines, M oderator. T his w ill be
a v ery in stru ctiv e panel for Iowa
banks of all sizes. An able and im por­
ta n t address by A. M. Carter, a Di­
recto r of th e “Sm aller W ar P lan ts
C orporation”, W ashington, D. C., en­
titled “C ooperation of B ankers in
Small P lan t P roblem .”

F. S. F errin g , cashier of th e F arley
State Bank, F arley, Iowa, has not been
well for th e p ast tw o m onths. How ­
ever, he is able to come to th e bank
again and greet his m any friends. He
has been associated w ith th e F arley
State since its inception in 1906. H is
co-worker, J. L. M ahony, took up his
w ork in 1916 and Leo M. S anner in
1919. Miss M argaret L aw ler is the
v ery efficient bookkeeper since 1942.

M itchell County
Bankers Picnic
The M itchell C ounty B ankers Asso­
ciation held a picnic a t Pioneer State
P a rk at B row nville, Iowa, last m onth.
The bank officials, w orkers, directors
and th e ir fam ilies, num bering 40, w ere
present. A sh o rt program and social
h o u r followed th e supper.

Braniff to Iowa State Bank
G. A. F ram pton, presid en t of th e
Iow a S tate Bank, Des Moines, Iowa,
announced th e ap p ointm ent of R ay F.
B raniff as b ank auditor.
Braniff, a life-time resid en t of Des
M oines and grad u ate of E ast H igh
School, has been em ployed by the
Iowa-Des M oines N ational B ank &
T ru st Com pany th e last ten years.

NEW EDITION READY

T he
N ew York T rust
Company
Capital Funds . $45,000,000

IO O B R O A D W A Y
M A D I S O N A VE NU E
A N D 4 0 T H STREET

TEN
ROCKEFELLER
PLAZA

The American Bank
Reporter

Experience
Service
Cooperation

Published July, November, March

CONTENTS
A complete list of banks, bankers, sa v ­
ings banks and trust companies in the
United States, Canada and principal
cities oi foreign countries, with names
of officers, capital, surplus and undi­
vided profits, loans, deposits, securities,
cash and due from banks, members of
the Federal Deposit Insurance Corpora­
tion, principal correspondents, attorney
list, etc.

Manned by officials with years
of experience, our Correspon­
dent Bank Division renders a
complete service, conducted in
an intimate and personalized
manner.
The guiding policy is one of
cooperation in all matters of
mutual interest.

N ew Com plete Edition . . .

GTfie

D elivered $10.00
★

BUY
W AR
BONDS

ORDER YOUR COPY TODAY

★

American Bank Reporter

M ember of the Federal Deposit Insurance Corporation

Northwestern Banker September 19b3


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Federal Reserve Bank of St. Louis

R ib lic N a tio n a l

SPECIAL STATE EDITIONS or
COMBINATION OF STATES

B A N K

A N D

CO M PANY
M o d e ra tely P riced

420 E. 149th St.. New York 55, N. Y.

OF

TR U ST
NEW

E S T A B LI S H E D

I
\

YORK.
19 0 8

o u se
M
Meem b er:'N e w Y ork Clearing House
a n ce
Association ¡Federal Deposit Insurance
'Corporation!

II
II

95
B raniff is a g rad u ate m em ber of th e
A m erican In stitu te of B anking.

G e ts New Post
W esley Grote, an em ploye of th e
Council Bluffs (Iow a) Savings B ank
since 1929, h as been appointed assist­
a n t cashier,, to fill th e position left
v acan t by th e resig n atio n of D w ift
F. Hesse.
Mr. G rote is a g rad u ate of A braham
Lincoln H igh School and is th e son of
W illiam Grote, p resid en t of th e Younk erm an Seed Company.
H e will be in charge of notes and
d ra fts a t th e bank.

N

60th A nniversary

of m any business men the bank

The F irs t N ational B ank of P erry ,
Iowa, observed its 60th b irth d a y as a
n atio n al in stitu tio n recently. I t w as
ch a rte red as a natio n al b an k A ugust
14, 1883. The b an k w as ten y ears old
a t th a t tim e, hav in g operated for a
decade as a p riv ate b an k in g firm.
T he F irs t N ational has enjoyed a
steady g ro w th over th is period and
now has deposits to talin g $2,447,000,
as large a total as ever at any one tim e,
according to C. S. Johnson, executive
vice president.
W hat is now th e F irs t N ational w as
sta rte d as a p riv ate b an k in g house in
1873 by George B lakeslee, w ho sold out
his in te re sts in 1885, tw o y ears a fte r
th e b an k becam e a natio n al concern,
to D. J. P attee and O. M osher.
In 1926 th e B renton B ro th ers as­
sum ed control of th e b an k and it is
still one of th e several B ren to n in sti­
tutions.
The p re se n t p ersonnel includes:
W. H. B renton, president; E v a A. B ren ­
ton McColl, vice president; Dr. E. M.
Foltz, vice president; G. C. Kelly, vice
president; C. S. Johnson, executive vice
president; W. B. Crist, cashier; P. H.
G raney, a ssista n t cashier; M ary Jan e
S tew art, M ary K a th ry n M organ and
M arg aret Coleman, tellers; M ary Reel
and V irginia Olson, bookkeepers; G uin­
evere B arth , secretary , and C harles
R um phrey, custodian.

Buchanan C ounty
Bankers Elect
T he B uchanan C ounty B ankers As­
sociation held election of officers last
m o n th and th e new officers elected
are as follows:
D. H. Dingsley, cashier, Row ley Sav­
ings B ank, president; F. F. Cowlishaw,
cashier, F a irb a n k S tate B ank, vice
president; Jo h n C orcoran, cashier, Se­
cu rity S tate B ank, Independence, sec­
re ta ry , and J. S. L u th er, m anager,
W in th ro p B ranch, F a rm e rs State Sav­
ings B ank, Independence, tre a su re r.

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Federal Reserve Bank of St. Louis

”

- r

3

T h e w ords “PHILADELPHIA
a t io n a l ”

bring to the m inds

w h ich has played an im por­
tant part in the d evelop m en t
of business and industry over
a period of 1 4 0 y ea r s...a lm o st
th e life tim e o f ou r N a tio n .
But to bankers th rou gh out the
U nited States “3-1” stands for
th e in stitu tion w h ich has acted
as their P h i l a d e l p h i a C o r r e ­
spo n d ent

for m any, m any years.

”3 -1 ” sp ea k s y o u r la n g u a g e ,
offers u n excelled facilities and
cordially in v ites you r account.

...THE-..

PHILADELPHIA
NATIONAL

BANK

O R G A N IZ E D 1803

PHILADELPHIA, PA.
Resources over $750,000,000
MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker September 19'r3

96

Awarded A rm y and Navy ' E'

WHAT
.h e lp s the war effort?
-attracts new depositors?
_ makes money for
your bank?

y fa fte w
i Todd Special
Checking Account Services. They
save workers’ time, gasoline and
tires in paying bills; provide all the
features war-busy people want in a
checking account at a price that is
fair to them and profitable to the
bank.
Todd Special Checking Account
offerings are flexible. You adapt
tested ideas to your own bank’s
individual needs. Then, you employ
the proved, customer-getting pro­
motional material to build a profit­
able volume of accounts. That’s all
there is to it! Mail the coupon for
details.

THE TODD CO., INC., ROCHESTER, N. Y.
I w ould like to have m ore details ab o u t the
Todd Special C hecking A ccount Services and
th e p ro m o tio n al m aterial th a t h elps to get profit­
ab le accounts.

A bove, th e A rm y a n d N a v y “ E ” p e n n a n t fo r h ig h a c h ie v e m e n t in th e p ro ­
d u c tio n o f w a r e q u ip m e n t is b e in g p re s e n te d to B. F. Fisher, p re sid e n t,
in b e h a lf o f th e F is h e r C om pany of C h a rle s C ity , Io w a, b y L ieu ten an t
Colonel H. R. W atson, o f th e U n ite d S ta te s A rm y. T he F is h e r C om pany
fo r 73 y e a rs has m a n u fa c tu re d a n d in s ta lle d b a n k e q u ip m e n t. A t p re se n t,
th e y a re e n g ag e d solely in th e p ro d u c tio n o f w a r e q u ip m e n t.

LTHOUGH th e F ish e r Com pany at
C harles City, Iowa, pioneer m an u ­
factu rers and specialists in th e bank
fixture field, is w orking entirely for
Uncle Sam in th e production of w ar
equipm ent, P resid en t B. F. F ish e r re ­
p o rts th a t he receives m any letters
from b an k ers asking w hen th ey w ill
be able to re-build or rem odel.

A

Mr. F ish er says th a t w hen th e w ar is
over, of course, th e com pany expects
to re tu rn as quickly as possible into
th e bank fixture field, w hich th ey have
served so steadily for 73 years.
The F ish er Com pany some tim e ago
w as th e recipient of th e A rm y and
N avy “E ” P e n n a n t for high achieve­
m ent in th e production of w ar equip-

Out-of-"Town ¥>anks
O u t-o f-to w n banks and bankers w ill find here

N a m e ------------------------------------------------------------

c o m p lete b a n k in g fa c ilitie s fo r p ro m p t and

A d d ress.
C ity ------

econom ical handling o f accounts in Chicago. We

NB-9-43

TM

COMPANY, INC.
ROCHESTER
NEW YORK
OF F I CE S IN A L L y y P R I NCI PAL CITIES

w ould appreciate the opportunity o f serving you.

C

it y

V

a t io w

A N D

T R U S T

2 0 8

S O U T H

l

C O M P A N Y

B

of Ch i c a g o

L A S A L L E

( Member Federal Deposit Insurance Corporation)

' N oFRASER
rthwestern B a n k e r
Digitized for
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Federal Reserve Bank of St. Louis

S e p t e m b e r 19^3

a n k
S T R E E T

97

The
ID allace - H o m estead
C om pany
P rin tin g
P lant, 19th &. Q ra n d
A ue., D e s M oines.

c

onqraiulciiions and Besi Wishes io ihe

lottfd Bankers Association
57th

ANNUAL CONUENTION
SEPTEMBER 5th and 6th
Des rtloines

When IJou N eed

RATION EANK1NQ FORMS
or

l. F>. A. STANDARD FORMS
Send your O rder io

tDallace-Homestead Company
Printing

Binding

DES

1912 Q R A U D ^LUEnUE

Printers

of

the

Northwestern
THE


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Federal Reserve Bank of St. Louis

TYPE

FACE

USED

FOR

Banker
T H IS

Engraving

•

U tO in E S ,

for

A D VERTISEM EN T

IS

Mor e

lOlDA
Than

26

l}ears

PARSONS

Northwestern Banker Septem ber 19^3

- •
m ent. The firm and its em ployes are
v ery p roud of th e h igh h onor given
them , because th is aw ard is n o t lightly
given, and it carries a g re a t p atrio tic
challenge w ith it.
On th e day on w hich th e aw ard w as
m ade to the F ish e r Com pany, th e tow n
of C harles City tu rn e d out en m asse
for the occasion and all th e business
houses and stores closed d u rin g th e
afternoon. The p resen tatio n cerem on­
ies w ere held in th e h igh school au d i­
torium and an excellent pro g ram w as
staged. The p rincipal address w as de­
livered by Iow a’s governor, B. B. Hick-

IOWA

NEWS

enlooper. The aw ard w as officially p re ­
sented by L ieu ten an t Colonel H. R.
W atson of th e U. S. A rm y, and the
p e n n a n t w as accepted for th e F ish er
Com pany by B. F. Fisher.
A rm y and N avy “E ” pins w ere p re ­
sented to th e em ployes by Lt. Com­
m ander E. E. P e tte r of th e U nited
States Navy. The pins w ere accepted
for th e em ployes by Jo h n Novae.
R ep resentatives of the W AVES, the
WACs and th e M arines w ere all rep ­
resen ted on th e program . Several re p ­
resen tativ es from th e W ar D epartm ent
and th e A rm y and N avy atten d ed th e
cerem onies.

BACK THE ATTACK... M M War Bonds

'T IL ADOLPH .nd TOJO
HOLLER “ UNCLE”
Our energy, our experience a n d our resources of
more th an $6,000,000 a re em ployed not only in
the service of our custom ers . . . but also in full
cooperation with the Governm ent in every w ay
possible for all-out prosecution of the W ar.
The 1943 W ar Conference of the Iowa Bankers
Association is to be a stream lined event, covering
only Sunday, Septem ber 5th, a n d the Labor Day
holiday of M onday, Septem ber 6th. Time will be
short, but we look forw ard to welcom ing a n d to
visiting with correspondents a n d other friends
coming to Des Moines for these sessions. W e'll
be seeing you!
- - OFFICERS —
ROLFE O. W AGNER, P r esid en t
RAYMOND G. MILLER, V ice P r esid en t
J. N . COFFEY, C a sh ie r
GEO. RADCLIFFE, FRED C. SUTTON a n d C. ALLEN EV AN S, A ss is ta n t C a sh ie rs

Dallas County Bankers Elect
N.
P. Black of the P e rry (Iowa)
State B ank w as nam ed p resid en t at the
an n u al m eeting of the Dallas County
B ankers A ssociation. The m eeting w as
held at the P e rry Golf and C ountry
Club.
O ther officers elected w ere O. D.
E lsw o rth of Adel, vice president, and
W alter C rist of th e P e rry F irs t Na­
tional Bank, secretary-treasurer.

New Manager at Redfield
The new m anager of th e Dallas
County S tate B ank’s Redfield, Iowa,
office w ill be J. B. Altwegg. Since
W endell Stanley left th a t position a
sh o rt tim e ago to accept a position
closer to his hom e, th e position has
been filled by Russell H orn, assistan t
cashier of the Adel bank.
Mr. A ltw egg comes from R em brandt,
Iowa, w here he w as assistan t cashier
of th e F irs t N ational Bank.

Union Bank Honors Officer
A d in n er w as held in Union, Iowa,
last m onth by officers, th e ir fam ilies
and staff m em bers of the U nionW hitten S tate Savings Bank, for E nsign
H arris E. Long, w ho w as g ran ted a
leave of absence as vice p resid en t of
th e ban k to re p o rt for active du ty in
th e U nited States Navy. E n sign Long
has been p rep arin g for service in the
arm ed forces for some tim e, having
enlisted several m onths ago.
The farew ell d in n er program was
presided over by Charles F. Long,
cashier of th e bank.
Some of th e num bers on th e p ro ­
gram w ere “B anking, 1910 to P resen t
Day,” by C ashier L. L. Bixby of the
Liscom b office; “R ation B anking,” by
Vice P resid en t K. J. Lyon; “In su r­
ance,” by A ssistant C ashier La Mont
Moore; “F u tu re B anking,” by C hair­
m an of th e Board W. B. Bram well.
P resid en t K auffm an p resented E nsign
Long a W ar Savings Bond in behalf
of th e b ank staff and officers.

To Minneapolis

C apital C ity State Bank
E stablished 1878
Locust at East 5th Street

D es M oines

M ember Federal Deposit Insurance Corporation

BACK THE ATTACK... M M War Bonds
Northwestern Banker Septem ber 19b3


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

Phebe Duea, Story City, w ho has
been em ployed at th e Valley Savings
B ank in Des Moines, has accepted a
sim ilar position w ith the F irs t N ation­
al B ank a t M inneapolis.

New Employe at Arlington
The board of directors of the A m eri­
can N ational B ank of A rlington, Iowa,
have secured the services of Clyde A.
Menold of Plainfield, to assist w ith the
b ank w ork d uring th e absence of F.
E. B reckner, w ho is now serving his

99
co u n try in th e U nited S tates N aval
Reserve.

Security National
Doubles Capital
The S ecurity N ational B ank of Sioux
City, Iowa, has increased its capital
stock from $250,000 to $500,000.
“T he increase in capital w as consid­
ered essen tial because of a continuous
increase in th e volum e of b u siness,”
said C. R. Gossett, president. “The
m ajo r p a rt of th e stock is ow ned by

Clinton Led the State in 1942
In Building Permits
In Percentage of Employment
In Population Increase
★

★

★

Ideal Rail, Water and Highway facilities as a
Distributing Point.
★

★

★

Clinton is advantageously situated with nondepres­
sion, diversified industries for its Post-War future.

NATIONAL

FIFTH AVENUE
SOUTH-226-

C

CLINTON, IOWA

c.

R. G O S S E T T
P r e s id e n t

business m en and resid en ts of Sioux
City, and it is h e a rte n in g to know th a t
th e y have sufficient confidence in Sioux
City and its trad e te rrito ry , as w ell as
th e ban k in g business, to in v est an o th er
$250,000 in th e ir ow n bank.
“T he action of th ese people, w hich
w as tak en a fte r careful analysis of th e
fu tu re outlook, should be encouraging
to all w ho live here. It is an exhibi­
tio n of faith in th e fu tu re as w ell as
th e p re se n t.”
D irectors of th e S ecurity N ational
B ank are: P aul B ekins, H u b e rt H.
E v erist, C. R. Gossett, W illiam W. MacF arlan e, E d w ard C. P alm er, George L.
Booth, Otis P. G arrison, H arold A.
Jacobsen, J. E arle M artin and H a rry
P. P ra tt, all of Sioux City.
O ther officers besides Mr. Gossett,
presid en t, are: B. M. W heelock and
A lb ert C. E ck ert, vice presidents; R.
E a rl Brow n, cashier; D. B. Severson,
F ra n k H. Abel, A. G. N elson an d Rob­
e rt W. Lewis, a ssista n t cashiers.

W averly Banker
Guest Speaker
G. O. V an D erveer of W averly, Iowa,
w as th e guest sp eaker a t S um ner Ro­
ta ry Club last m onth. H is rem ark s

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Federal Reserve Bank of St. Louis

BANK

o n to r t, ¿ ¡ o w n

Member Federal Reserve
System and Federal Deposit
Insurance Corporation

GREETINGS

IOWA BANKERS
Let's m ake our 1943 A nnual C onvention our b est m eeting in
history! Let's sh ow the world that no b u sin ess group in
A m erica is contributing more to the W ar Effort than the bankers
of this country!

Let's W ork For Victory— At Our C onvention!
DIRECTORS:
D r. E . M . M a c E w e n , D ea n o f C o lle g e o f M e d ic in e , S ta te U n iv e r s it y o f I o w a
R. J. B a s c h n a g e l, D ir e c to r , F e d e r a l L an d B an k , O m ah a
G eo rg e A . T h o m p so n , R etire d
W . W . S u m m e r w ill, V ic e P r e s id e n t (O n le a v e in U . S. N a v y )
M . B . G u th rie, C a sh ier
G uy A . S te v e n s , F arm er
B en S. S u m m e r w ill, P r e sid e n t

OFFICERS:
B en S. S u m m e r w ill, P r e s id e n t
D r. E . M . M a c E w e n , V ic e P r e s id e n t
M . B . G u th rie, C a sh ier
W . W . S u m m e r w ill, V ic e P r e s id e n t
W . F . S ch m id t, A s s is t a n t C a sh ier
M . E . T a y lo r , A u d ito r

IO W A S T A T E B A N K
& T R U ST CO M PA NY
Iow a City, Iow a
Member F ed eral D eposit Insurance C orporation

Northwestern Banker Septem ber 1943

100

• IOWA
w ere some observations and incidents
w hich he experienced w hile v isitin g in
Seattle, W ashington, recently.
It w as his o p p o rtu n ity and privilege
to talk to some of th e w ounded m en
back from Alaska. It is his conviction
th a t th e Jap anese are tou g h oppo­
nents, absolutely ru th le ss and u n p rin ­
cipled. To defeat th em it w ill be
necessary to ex term in ate them .

Wins Commission
P. T. Grim es, Jr., form er em ploye of
th e Davis C ounty Savings B ank,
Bloomfield, Iowa, now statio n ed w ith
the A rm y in E ngland, w as com m is­
sioned a second lieu ten an t recen tly at
an officer candidate school som ew here
in E ngland. L ieu ten an t G rim es is th e
son of P. T. Grim es, Bloomfield b a n k ­
er, and has been in E n g lan d about nine
m onths. He is in th e A rm y finance
departm ent.

Modernize Fixtures
The Inw ood office of th e Rock R ap­
ids State B ank has undergone radical
im provem ents in the rem odeling and
m odernizing of th e ir b an k fixtures. It
gives th e ban k in g room a m ore com ­
m odious appearance and is a real con­
venience for M anager Cliff P ru itt and
helpers back of th e counter.

A . J. Mulroney
A. J. M ulroney, vice p resid en t of the
F ed eral R eserve B ank of Chicago and
a n ative of M allard, Iowa, died last
m onth of h e a rt failu re caused by an
infection. D eath cam e in an E vanston,

NEWS

•

Illinois, hospital. M ulroney w as born
in M allard, A ugust 14, 1897, and started
his b rillian t banking career on the
staff of a co u n try bank. He is a g rad­
u ate of th e State U niversity of Iowa,
receiving an LL.B. degree in 1924. He
w as a m em ber of th e Iowa bar.

ow ner for seven years, came from
W isconsin and had been connected
w ith banks in Iow a and W isconsin
recently. Mr. H ornsby, w ho came from
Omaha, retired tem p o rarily on account
of his health, rem ains on the board of
directors.

On Furlough

On W ar Fund Committee

W ill I. Deam, p resident of the F a rm ­
ers State B ank at Dows, Iowa, w as a
business caller in H am pton recently.
He w as accom panied by Jam es I.
Deam, w ho has a leave of absence
from his position as cashier in th e
b an k w hile he is serving in th e U nited
States A rm y.
Jim has been stationed in th e air
corps division, w ith h ead q u arters at
P ittsb u rg , K ansas, and this is his first
trip hom e for over a year.

H arold H. Helm , vice presid en t and
director of th e Chem ical B ank & T ru st
Company, has accepted appointm ent
as city wide vice ch airm an of the New
Y ork Com m ittee of th e N ational W ar
F und, it w as announced by Em il
Schram , chairm an.
Mr. H elm w ill be second in com­
m and in th e cityw ide cam paign to
raise $17,000,000, th e five-borough goal
in th e N ational W ar F u n d ’s forthcom ­
ing nationw ide appeal for $125,000,000
for su p p o rt of th e USO, U nited Sea­
m en ’s Service and fifteen o th er m ajor
agencies serving our own arm ed forces
and our fighting Allies. Included in
th e local goal is approxim ately $1,000,000 for w ork of th e New Y ork City
Defense R ecreation Com m ittee now
serving upw ards of 1,000,000 service
m en a m onth.
The ap p o in tm en t of Mr. H elm as
cityw ide vice chairm an w ill b ring the
N ew York com m ittee th e services of a
m an of w ide experience in fund ra is­
ing. He w as ch airm an of th e W ar
Chest Com m ittee of th e R ussian W ar
Relief, ch airm an of th e Red Cross W ar
F u n d Cam paign in M ontclair, New
Jersey, his hom e tow n, and he inaug­
u rated and w as chairm an of the P rin ce­
ton U niversity P rogram of A nnual
G iving am ong th e alum ni.

Schuster Speaks on
Rotary Program
M em bers of the Lyons Club heard
L. J. Schuster, p resident of th e C linton
N ational Bank, speak on th e “New
Incom e T ax P la n ” last m onth a t th e ir
reg u lar m onthly din n er m eeting in
Grace E piscopal C hurch parish house.

Nebraskans Buy
Griswold Bank
R. V. P rokop and E dw ard T. W olfe
of Columbus, N ebraska, purchased
and took over the G risw old (Iow a)
State B ank last m onth. B oth have
been in the banking business in Ne­
braska. C. A. C halstrom and son,
w ho in May purchased th e bank from
C. J. H ornsby, w ho had been the

IO W A ’S O LD EST BANK

SA LU TES

The Bankers of Iowa
at this

Wartime Convention
1856

SELL MORE BONDS

Council Bluffs Savings Bank
B. A .

G R O N S T A L,

Northwestern Banker Septem ber 1943

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

P resid en t

1943

101

•

IOWA

New Investment Firm
A new in v estm en t securities com ­
pany is now progressin g nicely in Ce­
d a r Rapids, Iowa, headed by Thom as
L. Crabbe, w ho w as for a n u m b er of
y ears m an ag er of th e Cedar Rapids
office of th e H anna-K ram er Com pany
of B urlington. He has p u rch ased th e
Cedar R apids office from th e H annaK ram er Company.
T he new com pany is know n as
T hom as L. Crabbe and Com pany, w ith
offices in th e M erchants B ank B uild­
ing.
The new firm is h andling a g eneral
line of investm ents, including m u n ici­
pals, rails and u tilities. The new firm
w ill also deal in securities of Iow a
corporations.
Mr. Crabbe is w ell know n am ong
b an k ers and in v estm en t bank ers. He
has been in th e in v estm en t business
since 1923 and w as w ith th e H annaK ram er Com pany for m ore th a n 12
years.
W ith him is associated H a rry S tro th ­
er, w ho w as a t one tim e w ith th e
Cedar Rapids Savings Bank.

•

Investing Excess Funds

Three Assistant Cashiers
A lvin E. Johnson, p resid en t of th e
Live Stock N ational B ank of Omaha,
announces th e ap p o in tm en t of W.
Dean Vogel, E a rl R. C herry and T. J.
Price, Jr., as a ssista n t cashiers.
Mr. Vogel becam e associated w ith
th e b an k in D ecem ber of 1942. He had
been in th e finance business a t A tlan ­
tic, Iowa, for four y ears and for about
ten y ears p rio r to th a t tim e h ad been
associated w ith th e A tlantic State
Bank. H e is a n ative of Iow a and a
g rad u ate of th e U n iv ersity of Iowa.
Mr. C herry, w hose w o rk is largely
inspection of livestock loans, has been
w ith th e b an k since S eptem ber of
1937. Mr. C herry is a n ativ e of Sioux
county, N ebraska, w h ere he grew up
in th e ran ch in g b u siness w ith his fa th ­
er. H e atten d ed th e Colorado A gricul­
tu ra l College at F t. Collins, Colorado.
Mr. Price, w ho has been w ith th e
b an k about a y e a r as a livestock in ­
spector, is a n ativ e of K ansas an d th e
fo u rth g en eratio n of th e P rice fam ily
w ho have long been p ro m in en t in th e
livestock business in L yon county,
K ansas, and th e T exas P anhandle. He
atten d ed college at K em per M ilitary
School of Boonville, M issouri, and th e
U n iv ersity of K ansas. P rio r to his
association w ith th e Live Stock N a­
tional B ank, he w as w ith th e St.
Joseph Stockyards C o m p a n y , St.
Joseph, M issouri, for th re e and oneh alf years.

NEWS

(C ontinued from page 13)

"Loan Percentage Usually
Much Higher"
N EIL

D. S A V ILLE
C ash ie r
First National Bank
Wisner, Nebraska

Loans .................................... 29
Cash on hand and in banks 50
U. S. Govt. Bonds .............. 20
O ther a s s e ts .......................... 1
100

W e are investing some of our excess
funds in U. S. G overnm ent Bonds.
P ercentages of various assets to
totals:

Our loan percentage is usually m uch
higher, b u t owing to th e un settled
condition of livestock in d u stry , feed-

W hy
Headquarters for
Northeastern Iowa
Bankers?
B eca u se we offer fast, efficient

service on all your N ortheastern
Iowa business.
Your account is invited!

the

NATIONAL BANK
OF W ATERLOO
M e m b er F ederal R eserve S ystem
M em b er F ederal D eposit Insurance C orporation

Northwestern Banker Septem ber 1943

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Federal Reserve Bank of St. Louis

102

-•

IOWA

NEWS

ers are n o t investing, being afraid to
take hold w hen feeders cost so n early
w h a t m ark etab le anim als bring, and
w hen feed costs are so high.

Bonds. As to th e type of our in v est­
m ents, about 95 per cent is going into
local loans, and 5 p er cent into G overn­
m en t Obligations. W e do not w an t
any long-term securities.

"Don't W ant Long-term
Securities"

"Cattle Loans Should
Increase in the Future"

G U Y

M.

BUTTS

President
Exchange S ta te Bank
Wesley, Iowa

Our excess funds, so-called, we are
investin g in % p er cent G overnm ent

*

•-

S.

R. D c C O U
C ash ie r
First National Bank
Woodbine, Iowa

In regard to investm ents of funds,
the follow ing is our approxim ate
schedule:

Bills Receivable
A utom obile a n d
C o n tra c ts............
U. S. B o n d s............
G eneral B o n d ........

................ 57%
M achine
................. 006%
................ 18%
................ 19%

T o ta l.................... ................100%
We have idle funds considerably in
excess of th e totals invested as above
indicated. W e expect our cattle loans
to increase in th e fu ture, w hich w ill
m ore th a n offset liquidation of general
ag ricu ltu re notes th a t w ill be paid
from proceeds of crops realized for the
year 1943.

"Usually Have Large Per­
centage in Local Loans"
L.

T. JA R M U T H

Vice President
First National Bank
Miller, South Dakota

Iowa Bankers Convention
Hotel Ft. Des Moines
September 5th and 6th, 1943
The D rovers N ation al Bank of C h icago w ill
b e rep resen ted at this C onvention by:
G eorge A. M alcom , V ice President and Cashier
D ale E. Cham berlin, V ice President
Frank M. Covert, A ssistant Cashier

. . . w h o look forw ard to m eetin g you there.

DROVERS NATIONAL RANK
DROVERS TRUST & SAVINGS RANK
M E M B E R S, FED ER 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

C H I C A G O
Northwestern Banker Septem ber 1943

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

Our to tal in v estm en ts am ount to $1,755,000. Local loans rep resen t 40 per
cent of th is am ount, U nited States
governm ent securities 69% per cent,
and w a rra n ts and in d u strial bonds %
p er cent.
We are quite fo rtu n ate here to serv­
ice a large te rrito ry in w hich only a
few banks are operating. A large p a rt
of our te rrito ry consists alm ost en­
tirely of ran ch in g and it is in this te r­
rito ry th a t we are able to secure a
good percentage of livestock loans.
A bout half of our te rrito ry is m ore or
less considered a farm ing co untry b u t
w ith a good m ix tu re of livestock in con­
nection w ith every farm . Up and un til
th is p ast year we have been able to
loan practically all of our funds to our
local custom ers b ut now our deposits
have gone up so th a t it is necessary
for us to in vest in governm ent secu­
rities.
W ith th e price of livestock as high
as it is we believe our local loans will
be considerably reduced from th e sale
of such livestock and our investm ents
in governm ents w ill probably be hig h ­
er after th e m ark etin g season is over.
T here is a tendency on the p a rt of our
ran ch ers th a t this fall w ill be a good
tim e to get out of debt and th ey are
going to reduce th eir herds for th a t
reason.

"Planning a New
Checking Activity Charge"
C. J. M O R T E N S E N
President
Nebraska S ta te Bank
Ord, Nebraska

I th o u g h t definite action could be
announced w ith reg ard to checking

103
activ ity charges for the Ord banks, b u t
up to th is w riting, we are not m aking
any progress on g ettin g a definite new
plan, b u t th in k we w ill line som ething
up in Septem ber. The 50 cents m ain te­
nance charge allow ing 10 cents p er
h u n d red on m inim um balances and
3 cents for a check and a deposit seem s
to be th e m ost equitable and juicy as
reg ard s to revenue.
F ro m Ju ly 1st, we have reducêd our
in te re st on Tim e C ertificates and Sav­
ings A ccounts to 1 p er cent. Our loans,
from a peak of $480,000 th is w in ter,
are dow n to $280,000. If, w hen and
how th e OPA gets som e definite plan
for th e cattle feeder, we should in ­
crease our loans v ery m aterially th is
fall th ro u g h cattle feeding operations.
If th is action is not taken, it looks as if
th e re w ill bfe v ery little feeding done.
W e do not ride th e co u n try in reg ard
to loans as it has been found in th e
p ast th a t th is sets a bad precedent.
As of th is date, we have not lost any
cu stom ers to th e PCA and have found
from experience th a t a liberal over­
d ra ft policy does m ore to hold th e
farm in g cu stom ers th a n an y th in g else
th a t a b an k can do. T he farm er likes
to know th a t his check w ill be honored
w ith o u t going to tow n for every little
financial tran sactio n . I th in k th a t is
th e m ain reason th a t our custom ers,
in spite of m ore a ttra c tiv e in te re st
ra te s elsew here, rem ain loyal to th e
bank.

T h e r e is a n u p - to - d a te r e f e r e n c e l i b r a r y
i n e a c h B u r r o u g h s office. I t c o n t a i n s
t h e la te s t d e t a i l e d in f o r m a t i o n o n th e
a p p l i c a t i o n o f m a c h in e s t o to d a y ’s n e w
a c c o u n t i n g p r o b l e m s . T h is i n f o r m a ­
ti o n , a s w e ll a s th e s e rv ic e s o f B u r ­
r o u g h s ’ te c h n i c a l staff, is a v a ila b le t o
e v e ry B u r r o u g h s u s e r.

M A IN TEN A N CE S E R V IC E
R ig h t n o w y o u c a n a rra n g e fo r re g u la r,
p e r i o d i c i n s p e c t io n , l u b r ic a t io n a n d
a d ju s tm e n t o f y o u r B u r r o u g h s m a c h in e s ,
s o t h a t e m e r g e n c ie s a n d th e d e la y s
th e y c a u s e m a y b e p r e v e n te d . A s t a n d ­
a r d B u r r o u g h s S e rv ic e A g r e e m e n t p r o ­
v id e s th is e ffic ie n t p r o t e c t i o n a t a
m o d e r a t e , p r e d e t e r m i n e d c o s t. A ll w o r k
is g u a r a n t e e d by B u r r o u g h s .

Elected to Board
Jo h n E. B ierw irth , p resid en t of The
New Y ork T ru st Com pany, has a n ­
nounced th e election to th e board of
H orace H avem eyer, Jr., a directo r and
executive vice p resid en t of The N a­
tional Sugar Refining Com pany. A
grad u ate of Yale U n iv ersity w ith th e
class of 1936, Mr. H avem eyer is also a
d irecto r of B rooklyn E a ste rn D istrict
T erm inal and S cranton & L ehigh Coal
Company.

SU P P LY S E R V IC E
Y o u c a n a ls o a r r a n g e f o r d e liv e r y o f
B u rro u g h s c a rb o n p a p e r, r o ll p a p e r,
r i b b o n s a n d o t h e r m a c h in e s u p p lie s
m a n u f a c tu r e d t o B u r r o u g h s ’ o w n s p e c i­
fic a tio n s . D is c o u n ts r a n g e f r o m 1 0 %
t o 4 0 % o n q u a n tity p u r c h a s e s u n d e r
d if f e r e n t p l a n s t h a t p e r m i t d e liv e r y o f
a s little o r a s m u c h a s v o u n e e d a t a n y
o n e tim e .

T h e se

B

s e rv ic e s ,

u

valuable at any U^ e’ ^

r r o

u

g

h^

h

mce Gr

s

, PAYROLL AND STATISTICAL MACHINES
a d d in g ,

M rs. V an d erh ok u m , s ir — w a n ts to k now
w h y her son, W illie , h a sn ’t b een p ro m o ted !

CALCULATING, ACCOUNTING, BILLING

M A N U F A C T U R IN G F O R W A R — The manufacture of
aircraft equipment fo r the A rm y A ir Forces, an d the manufacture of Burroughs figuring
an d accounting equipment fo r the Army, Navy, U. S. Government and the nation’s
many w ar activities, are the v ita l tasks assigned to Burroughs in the Victory Program,

Northwestern Banker Septem ber 19^3

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

104

Twenty-five Years Ago
Names in Northwestern Banker News From the
September, 1918, Issue
/ / “T H E T re a su ry D ep artm en t calls
a tte n tio n to th e fact th a t in
order to successfully finance th e w ar,
it is necessary th a t ow ners of L iberty
Bonds hold th e ir bonds, if possible.
W here, for any good reason, it is
necessary for them to tu rn th e ir bonds
into cash, th ey are advised to seek th e
counsel of th e ir b a n k e r.” E d ito rial

N

o rth w estern

B a n k e r .— S.

L. Frazier,

M innesota co u ntry banker, says, “It is
up to us to p u t four m illion m en over
there, m arch stra ig h t th ro u g h to B er­
lin, p lan t Old Glory on th e flag pole in
th e K aiser’s fro n t y ard and m ake such
a hot tim e in th a t old tow n as w ill
m ake H ades seem an ideal place for a
cold plunge. W ar is hell all right, and

In tro d u c in g

Our NEW
Bank
This m onth the new Peoples Savings Bank m akes
its bow in W aterloo. Its organizers a re h ap p y to
present to the W aterloo a re a a financial institution
backed by the following directorate:
George E. Allbee
J. Peter Olesen
William A. D ewees
Whitney Gillilland

Dr. A. A. Hoffmann
John H. Jansen
Roger C. Miller
R. L. Stotesbery

W e are determ ined that this bank shall e arn a
prom inent a n d useful place in W aterloo business
life. W e also welcom e the opportunity to becom e
a p art of the Iowa banking fraternity—under the
efficient leadership of the Iowa Bankers Association.
W hen in W aterloo, w on't you p lease come
in a n d see us?

Peoples Savings Bank
W aterloo, Iow a
Blackhawk Bldg.

West 4th and Commercial St.

Vice President, J. Peter Olesen.
President, George E. Allbee
Cashier, William A. D ewees

Northwestern Banker Septem ber 1943

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

the only w ay to an n ih ilate the hell of
w ar is to ann ih ilate th e devils who
sta rte d it. So I say, to hell w ith the
K aiser and th e w hole ro tten outfit.”—
Otto H . K ahn of K uhn, Loeb and Com­
pany, New York, says, “We m ust all
save, rich and poor. T h at a general
ex h o rtatio n to save is not enough.
The people ought to be in stru cted in
exact detail how and w here and in
w h at w ay to save.”—Charles H. Sabin,
presid en t of th e G u aranty T ru st Com­
pany of New York, says, “The prob­
lem of econom y for the nation is v ery
m uch the sam e as for th e individual.
It is th e problem of choosing the m ore
im p o rtan t to th e exclusion of th e less
im p o rtan t th in g s.” — The A m erican
B ankers C onvention w ill be held in
Chicago, beginning Septem ber 23rd,
and th e program w ill be both in te re st­
ing and in keeping w ith w ar condi­
tions.—D ale E. Cham berlin, assistan t
cashier of the D rovers N ational B ank
of Chicago, is now Lt. Dale E. Cham ­
berlin, P ersonnel Office, Division H ead­
q u arters, Camp Sheridan, M ontgom ­
ery, Alabam a.— C harles F. H erb, form ­
erly vice presid en t of th e M ississippi
Valley T ru st Com pany of St. Louis,
has assum ed his new position as vice
p resident and director of th e H ibernia
B ank and T ru st Com pany of New Or­
leans.— Sew ard P rosser, p resid en t of
th e B ankers T ru st Com pany of New
York, announces th a t George B. M allon
has become a m em ber of th e com­
p a n y ’s staff.—H enry M eyer, assistan t
cashier of the N ational City B ank of
Chicago, says th a t u n d er his m anage­
m ent as a “sidew alk farm er, the p res­
en t price of w heat pays a handsom e
dividend on the in vestm ent and th a t
$2.40 a bushel on $35 land should not
be tolerated .”—F rom less th a n a m il­
lion dollars in deposits in 1890, to
m ore th a n $45,000,000 in 1918; this
briefly reveals th e grow th of the F ort
D earborn N ational Bank of Chicago.—
Leo E. S teven s, vice presid en t of the

Iowa L oan and T ru st Company, said
“The w hole banking business is es­
tablished on confidence, and banks
should first educate th e public to be­
lieve in the safety and security of th e ir
in stitu tio n before soliciting business
on o th er grounds.”— Secretary F rank
W arner of the Iow a B ankers Associa­
tion has prep ared a report, show ing
th a t on Ju ly 1, 1918, 408 Iow a b ankers
w ere serving w ith th e Colors.— John B.
M cDougal, cashier of th e C entral State
B ank of Des Moines, has joined the
M arine Corps and is stationed at P aris
Island, South Carolina.—J. H. Tngew ersen , presid en t of th e Iow a B ankers
A ssociation, has announced the ap­
p o intm ent of his com m ittees for the
year 1918-1919.— The P ackers N ational
B ank of Omaha has issued a handy

pad for th e desk, and on th e fro n t page
is a service flag containing six sta rs.—
The P ioneer Savings B ank of Omaha,
N ebraska, has changed its nam e to th e
P ion eer State Bank.—Joseph C. Brendal becam e cashier of th e F irs t N ation­

W e Planned It That W a y

al B ank of E lbow Lake, M innesota, on
Septem ber 1st.— The F arm ers and
M erchants B ank has opened for b u si­
ness at H uron, South D akota. —The
Germ an State B ank at W ing, N orth
Dakota, has changed its nam e to Bur­

Frequently som e of our correspondent bank­
ers express surprise at our intimate know l­
ed g e of their n eed s and problem s. The fact is

leigh C ounty State Bank. — George
B eisig l has been elected vice p resid en t

that w e p lan n ed it that w a y ! S everal of our
k ey officers learned the banking b u sin ess in

of th e A dam s C ounty S tate B ank of
H ettin g er, N o rth D akota.

rural areas.

That is w h y w e h a v e an under­

standing and appreciation of the problem s of

Officials Study Plan
Official p lan n in g agencies of a n u m ­
b er of cities and states th ro u g h o u t th e
nation are stu d y in g application of th e
proposed neighborhood developm ent
plan to th e ir com m unities, rep o rts
reach in g th e U rban L and In stitu te
indicate.
The plan, w hich provides for th e
redevelopm ent of A m erican cities and
th e h altin g of u rb a n b lig h t and de­
terio ratio n , w as recen tly incorporated
in a bill introduced in th e U nited
S tates Senate by Senator R obert F.
W agner. It calls for rebuilding of
blighted areas by p riv ate en terp rise
and by public im provem ent conform ­
ing to official city plans. A fter b lig h t­
ed areas have been dem olished, th e
land w ould be sold or leased for re ­
developm ent by p riv ate e n te rp rise in
accordance w ith m unicipal regulations.
U nder th e schem e, sponsored by th e
U rban L and I n s t i t u t e , a ttra c tiv e
neighborhoods w ith su p erio r en v iro n ­
m en t w ould be b u ilt in place of the
fo rm er d eterio rated or slum areas.
U rban blight w ould be halted, and
p ro p e rty values restored. Good ho u s­
ing w ould be created in close-in
areas, ta p e rin g off th e necessity of con­
sta n t su b u rb an expansion of cities.
In M em phis, M ayor W alter C hand­
ler declared th a t th e plan, if p u t into
effect, “w ill prove to be of trem endous

our correspondent bankers.
W e know the im portance of prompt clearance
of regular and sp ecia l item s of b u sin ess and
insist that service be tops.

S E C U R IT Y N A T IO N A L BA NK
SIOUX CITY, IOW A
Member F ed eral D eposit Insurance C orporation

Douglas-Guardian Service
K eep s In v e n to ry D ollars Working
While Stocks
Are WAITING
to Be Used

Raw or finished inventory m akes high-grade collateral
while aw aiting th e call to service—on the production line
or the fighting fro n t—when FIE L D W A REH O U SED by
D ouglas-G uardian. E very dollar p u t to w ork under our
service helps bankers to arran g e profitable loans and
supply needed money. Consultation w ithout Obligation.

FieldWarehousing^
I s th e la d y o f th e h o u se in?
I ’m d em ­
o n str a tin g a n ew b r a s sie r e — u n a ffe cted b y
p r io r it ie s !

CHICAGO
NEW ORLEANS
PHILADELPHIA
LOS ANGELES

MEMPHIS

TAMPA

FREE
P a m p h l e t te lli n g “ H o w
to S o lv e a D iffic u lt F i ­
n a n c ia l P r o b le m .” C om ­
p a r e s tw o f in a n c ia l s t a t e ­
m e n ts , b e f o r e a n d a f t e r
u s i n g D o u g la s - G u a r d ia n

sprviVp.

b tj Douglas-Guardian

“ wi'de "

ATLANTA
NEW YORK
DALLAS
SAN FRANCISCO
PORTLAND, ORE.

CLEVELAND
EASTON, MD.

ROCHESTER, N. Y.

SPRINGFIELD, MASS.

SPRINGFIELD, MO.

¡Vn r t h n i p a t p r n f i n n l r p r


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106

• IOWA
benefit to the cities over th e co u n try .”
E n d o rsem en t of th e plan w as ex­
pressed by M ayor F ra n k J. L ausche
of Cleveland, w ho declared th a t it
w ould “co n trib u te im m ensely to w ard
the rebuilding of cities w hich are dis­
in teg ra tin g at th e core.” S im ilar in ­
te re st w as expressed by R. W. T orras,
engineer-secretary of th e A tlan ta City
P lan n in g Commission. U rban red e­
velopm ent, M ayor C. H. Veale of Tulsa,
Oklahom a, told th e U LI, is “n ex t to
the larg est program before us to d ay ”,
th e largest being th e w in n in g of th e
w ar.
In H artford, C onnecticut, th e plan
is u n d e r consideration by th e City

NEWS

•

P lan Commission. In St. P etersburg,
Florida, it is being studied by th e City
P lan Board. O ther cities and the plan ­
ning agencies review ing th e proposal
include Chicago, th e Chicago P lan
Commission; Boston, th e Boston P lan ­
ning Commission; N ew ark, New J e r­
sey, th e new C entral P lan n in g Board;
Philadelphia, th e City P lanning Com­
m ission; P ittsb u rg h , th e P ittsb u rg h
P lan n in g Committee.
S tate agencies studying th e schem e
include the A rizona S tate P lanning
Com m ittee on Housing; th e O klahom a
Post-W ar P lan n in g Com m ission of the
O klahom a P lanning and Resources
Board; th e M assachusetts State H ous­

ing Board; th e M ichigan P lanning
Commission; th e V irginia State P lan ­
ning Board, and th e L ouisiana Eco­
nom ic D evelopm ent Committee.
“T he w idespread in te re st in the
W a g n e r neighborhood developm ent
bill indicates th a t a large n um ber of
our cities are in considerable need of
th is type of redevelopm ent,” Charles
T. S tew art, d irector of th e U rban L and
In stitu te, said. “T he plan offers an op­
p o rtu n ity for public and priv ate e n te r­
prise to join to g eth er to w ork on the
enorm ous problem s of m unicipal de­
terioration. T he linking of public
sponsorship and p riv ate incentive cre­
ates a pow erful com bination for attack ­
ing A m erica’s No. 1 m unicipal prob­
lem .”

Commercial Credit
Company Report
Com m ercial C redit Com pany rep o rts
consolidated gross volum e of th e “re ­
ceivables financing” d ep artm en t for
th e six m onths ended Ju n e 30, 1943, as
$230,507,598, com pared w ith $317,133,274 for the sam e period of 1942, and
$482,871,151 for th e tw elve m onths
ended Ju n e 30, 1943. F o r the six m onths
ended Ju n e 30, 1943, gross prem ium s,
p rio r to reinsurance, of its insurance
subsidiaries w ere $7,303,736, and net
sales of its m an u factu rin g subsidiaries
w ere $49,724,659.
N et incom e prio r to reserves for re­
negotiation of w ar contracts, U. S. and
C anadian income, su rta x and excess
profits taxes for th e six m onths ended
Ju n e 30, 1943, w as $10,981,238, com­
pared w ith $6,934,124 for th e sam e pe­
riod of 1942 and $21,994,754 for the
tw elve m onths ended Ju n e 30, 1943.
A fter providing reserves of $6,695,592 for renegotiation of w ar contracts
and U. S. excess profits, incom e and
surtax, and C anadian taxes and other
reserves of $995,429 for contingencies
and specific purposes, and deducting
m in o rity in terests of $9,168 applicable
to th e six m onths period ended Ju n e
30, 1943, n et income available for divi­
dends w as $3,281,049 com pared w ith
$3,502,358 for th e sam e period of 1942
and $6,847,110 for th e tw elve m onths
ended Ju n e 30, 1943.
A fter p aym ent of $259,118 dividends
on the 4% per cent cum ulative con­
v ertible p referred stock outstanding,
n et incom e applicable to th e common
stock for th e period w as $3,021,931, or
$1.64 p er share, com pared w ith $3,243,240, or $1.76 p er share, for the same
period of 1942, and $6,328,874, or $3.43
p er share, for the tw elve m onths ended
Ju n e 30, 1943.
Northwestern Banker Septem ber 1943

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Federal Reserve Bank of St. Louis

107

A . B. A . W ar Service Meeting
(C ontinued from page 18)
A ddress—“Sm all B anks A fter th e
W a r”, W. W. M cE achern, P resident,
U nion T ru st Com pany, St. P e te rs­
burg, Florida.
A ddress—“C om petition of G overn­
m en t Credit A gencies”, Claude F.
Pack, P resid en t, H om e State Bank,
K ansas City, K ansas.
A ddress — “B ank Sm all L oan E n ­
abling L egislatio n ”, R ichard W. Trefz,
P resid en t, B eatrice S tate B ank, Be­
atrice, N ebraska.
U nfinished B usiness, New Business,
E lection and In stallatio n of Officers.

Tuesday Afternoon, September 14th
Second General Session

A ddress—Joseph C. Rovensky, Vice
P resident, The Chase N ational Bank,
New York City.
U nfinished B usiness, New Business,
R eport of N om inating Committee.

In te r-A m e rica n F isca l P o licy

Call to O rder—P resid en t W. L. H em ­
ingway.
C om m unications a n d A n n o u n c e ­
m ents.
A ddress—L uis G. L egorreta, P resi­
dent, M exican B ankers Association,
G eneral M anager, Banco N acional de
Mexico, S. A., Mexico City, Mexico.

Wednesday Morning, Sept. 15th
Third General Session
In tern a tio n a l F isca l P o licy

Call to O rder—P resid en t W. L. H em ­
ingway.

Savings Division
Call to O rder—P resid en t W. W. Slo­
cum, P resid en t, The U nited Savings
B ank, D etroit, M ichigan.
A ddress — “Savings and Econom ic
S ecu rity ”, Dr. H arold G. M oulton,
P resid en t, The B rookings In stitu tio n ,
W ashington, D. C.
A ddress — “The W artim e Savings
P ro g ram of a C ountry B an k ”, R. N.
Downie, P residen t, The F id elity State
B ank, G arden City, K ansas.
A ddress—“M aking Savers of P ro s­
pective Hom e O w ners”, C harles W.
Green, F r a n k l i n S quare N ational
B ank, F ra n k lin Square, P ennsylvania.
Q uestion and D iscussion H o u r—Levi
P. Sm ith, L eader, P resid en t, B u r­
lington Savings B ank, B urlington, V er­
m ont.
B usiness Session — R eport of th e
P resid en t, E lection and In stallatio n of
Officers.

State Secretaries Section
E xecutive Session, th ro u g h o u t M on­
day, S eptem ber 13th.

and a h alf ago, M olly P itch er gained im m ortality
by ta k in g h e r h u sb an d ’s place in battle. T o d ay , m any w om en
are serving in th e in d u strial fro n t lines, and th e n atio n could never
have achieved its am azing w ar-p ro d u ctio n reco rd w ith o u t th e ir aid.
T h is is b u t one o f m any in d u strial changes th a t are likely to
outlast the w ar. T hese changes w ill create m any new p ro b lem s
o f ad ju stm en t w hen h o stilities cease, n o t only for th e industries
directly affected, b u t also for th e banks th at serve them .
W h en this tim e com es, the A m erican N a tio n a l w ill be p re p a re d
to co o p erate w ith o u t-o f-to w n banks ju st as closely and effectively
in m eetin g the new p ro b lem s o f peace as it does n o w in h e lp in g
th em w ith th e problem s g ro w in g o u t o f th e w ar.

A

Tuesday Morning, September 14th
First General Session
The D om estic E c o n o m y

AMERICAN NATIONAL BANK
A N D TRUST COMPANY
OF CHICAGO
LA S A L L E S T R E E T J J ,

AT W A S H I N G T O N

M em ber Federal D eposit " g a s lllls g : Insurance Corporation

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I S

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Call to O rder—P re sid e n t W. L. H em ­
ingw ay, P resid en t, M ercantile - Com­
m erce B ank and T ru s t Com pany, St.
Louis, M issouri.
Invocation — The R ight R everend
L ogan H. Roots, F o rm e r Bishop of
H ankow , China.
A p pointm ent of R esolutions Com­
m ittee.
A ddress—Topic: A g ricu ltu ral Credit,
C. W. Bailey, P resident, F irs t N ational
B ank, Clarksville, Tennessee.
A ddress—“A R eport and C ritique on
W ar F in a n c in g ”, R obert Strickland,
P resident, T ru st Com pany of Georgia,
A tlanta, Georgia.
C om m unications a n d A n n o u n c e ­
m ents.

CENTURY

Northwestern Banker Septem ber 19b3

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Federal Reserve Bank of St. Louis

.108

—• I O W A
C om m unications a n d A n n o u n c e ­
m ents.
A ddress—Dr. H en ry M erritt W riston, P resident, B row n U niversity.
A ddress — “P o stw ar F in an cial and
Econom ic P ro b lem s”, T he H onorable
R obert H en ry B rand, London, E n g ­
land, M a n a g i n g D i r e c t o r , L azard
B ro th ers & Company; C hairm an of the
Board, N orth B ritish and M ercantile
Insu ran ce Company, Ltd.
R eport of th e R esolutions Com m it­
tee, In au g u ratio n of Officers, A djo u rn ­
m ent.

r

NEWS

•-

“Cash incom es at th e m id-year m ark
averaged $1.33, or 33 cents m ore on the
The “real incom e” of th e A m erican dollar th a n at th e sam e period a year
public at th e s ta rt of July, 1943, w as ago. In May, 1943, cash incomes av er­
$1.27, or 27 cents m ore on the dollar aged $1.35, the first rise after th ree
th a n on Ju ly 1, 1942, according to a m onths of successive declines.
stu d y m ade public by In v esto rs Syndi­
“Real income, w hich is th e buying
cate.
pow er of cash incom es in term s of
“F o r the sixth successive m onth liv­ prices people have to pay for living
ing costs held at a national average of necessities, du rin g June, 1943, w as u n ­
$1.06, or six cents h igher on th e dollar changed from May, 1943, w hen it regis­
th a n a y ear ago,” explained Investors
tered the first advance follow ing th ree
S yndicate’s m onthly consum er study
declines du rin g th e first four m onths
of w h at people get and spend.
of th is year.
“Increasing evidence of general sta­
bilization of prices and, to a degree, of
incomes, is show n in th e rep o rt on
cash receipts and living expenditures
for June, 1943, com pared w ith a year
earlier.
“On th e outgo side consum ers did
p re tty well, assum ing th ey could sup­
ply th e ir needs in th e legal or 'w h ite’
m arkets.
“Clothing of civilians d uring Ju n e
cost only as m uch as in June, 1942,
w hich w as tru e also of May, A pril and
M arch of 1943, com pared w ith the
sam e m onths a year earlier. W earing
• • •
apparel for civilians in M arch was
$1.03, F e b ru a ry $1.05, and in Ja n u a ry
$1.08, com pared w ith those sam e 1942
m onths.
S in c e 1 8 6 8 th is in s t itu t io n
“Shelter, or the cost of housing, d u r­
ing Ju n e w as unchanged from a y ear
has co-operated w ith banks
ago. T his w as tru e of all o th er m onths
th is year to date, except d uring Ja n u ­
th ro u g h o u t th e m iddle
ary w hen th e national average of ren ts
w as $1.01, or a cent h ig h er on th e dol­
w est in extending credit
lar th a n in Jan u ary , 1942.
“Food took th e m ost ex tra m oney in
facilities to sound com ­
Ju n e com pared w ith th e like 1942
mercial borrowers.
m onth. Food, ever the largest single
slice of th e average hom em aker’s bud­
get, du rin g June, 1943, cost $1.16, com­
This experience is at your
pared w ith $1.00 in June, 1942. Price
controls recently have dem onstrated
disposal w ithout obligation.
sufficient effectiveness to give the
housew ife cause for hope. D uring
£ T /ie
May food cost w as $1.17 and in A pril
th e sam e am ount, w hile in M arch, Feb­
ru a ry and Ja n u a ry food w as at $1.15,
all of these com parisons being made
against $1.00 in th e corresponding
1942 m onths.
“M iscellaneous item s, w hich include
ESTABLISH ED 1868
all living expenses except food, cloth­
ing and shelter, du rin g Ju n e averaged
U N IO N S T O C K YARDS
$1.01, or a t th e sam e level as in May
and April. T hey stood at $1.02 in
M arch, F e b ru a ry and Ja n u a ry com­
x //
SJeat
pared w ith $1.00 in those 1942 m onths.”

Up 27c on $1.00

This
fence
may be useful
to you

LIV E S T O C K
^Ycf/fonu/ B A N K r(J/fCff<je

J

Member Federal Deposit Insurance Corporation

Northwestern Banker September 1943

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

A w om an p u rchasing w ar bonds
told the clerk:
“I ’ve been saving th is m oney to di­
vorce m y husband, b u t I can stand
him b e tte r th a n I can H itler.”

109

W O M E N FILL BANK
V A C A N C IE S

"All of Our Help Will Be
Women"

(C ontinued from page 23)

M. G. TOBlhi

W e have th u s far been successful in
obtaining e x c e p t i o n a l l y com petent
help on th a t basis; to th e ex ten t th a t
th e over-all labor problem in o u r b an k
has n o t been too burdensom e to date.

"O ur Bank Force Is Still
Intact"
ASA THOMAS
Vice President and C ash ie r
National Bank of Toledo
Toledo, Iowa

To s ta rt w ith, we w ere fo rtu n a te in
hav in g in our force of seven em ployes,
fo u r young ladies of exceptional abili­
ty. A t th is date we have been able to
keep these ladies on th e force.
One of our force, L. W. N ovotny,
a ssista n t cashier, w as inducted in th e
A rm y about a y ear ago. W e w ere
fo rtu n a te in replacing him w ith W alter
Dahl, w ho is a m an of considerable
experience in b an k w ork. T herefore
at th is date, th is b a n k ’s force has not
been d isru p ted to any considerable
extent.

are called into service, all of our help
w ill be wom en, except th e cashier and
one teller.

"Depending Upon
Sweet Girl Graduates"

Vice President
S ta te Bank of Vinton
Vint on, Iowa

K. N. KITTELSON
We have one m an in th e service. His
place w as filled by a re tire d teller 70
years old. E arly in th e w ar, w hen two
of our m en moved elsew here, we re ­
placed them w ith girls, an ticipating
arm y req u irem en ts for men. Our only
m en em ployes are cashier, assistan t
cashier, and th e above m entioned
elderly teller, and assistan t cashier at
our b ranch office in G arrison. If fath ers

President
National Citizens Bank
Canby, Minnesota

The job of replacing b ank help
seem s to have developed into two
classes. E ith e r you take th e best girl
H igh School g raduate you can find and
do th e best you can w ith h er or you
p irate on some o ther b ank and raise
Ned w ith your own salary schedule.

G reetin g s to the

Iowa Bankers Association
W e a re looking forw ard to seeing our m any
friends in the Iowa banking field this m onth at
the a n n u a l convention in Des Moines. May it
be a n outstanding a n d successful war-time con­
ference!

"W e Are Filling the Positions
With Girls"

—The Peoples Savings Bank—

A. C. IDSVOOG

CEDAR RAPIDS, IOW A

President
G ra fto n National Bank
Gra fto n, North Dakota

W e are m eeting th e lack of m anpow ­
er in o u r b an k by filling th e positions
w ith girls. W e have lost th re e m en
to th e A rm y, and our help situ atio n is
quite serious. W e believe som e of th e
positions in th e b an k are being p re tty
w ell ta k e n care of by girls, b u t th e re
is certain ly a lot of w o rk th a t cannot
be done as w ell by girls as by men.

O F F IC E R S
F r a n k C. W e lch , P r e s id e n t
T . R . W a r r i n e r , V ic e P r e s id e n t
W m . R in d e r k n e c h t, J r . , V ic e P r e s id e n t
P a u l H . H u s to n , V ic e P r e s id e n t
E . F . S te p a n e k , C a s h ie r
F . O. M ek o ta , B r e t t D is h o n g , A s s is ta n t C a s h ie rs
--------------------- M em ber F ederal D eposit In su ra n c e C orporation -----------------------

F IR S T N A T IO N A L BA NK
C E D A R F A L L S , IO W A

S tatem en t of C on d itio n as of Ju n e 30, 1943
L IA B IL IT I E S

RESOURCES
Cash and Due from Banks............. $
U. S. Direct and Guaranteed Bonds
State and Municipal Bonds. . . . . .
Stock in Federal Reserve Bank. . .
Loans and Discounts......................
Overdrafts ......................................
Banking House, Furniture and
Fixtures ...................................
Other A s s e ts .................................

871.032.48
920,996.65
472,071.06
3,600.00
227,390.25
69.04

Capital

......................................... $

100,000.00

Surplus, Undivided Profits and
Reserves ...................................
Deposits

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

52,566.84
2,385,287.14

32,324.50
10,370.00

$2,537,853.98

$2,537,853.98

V. W. Johnson, P resid en t
J. B. Newman, Vice P resid en t
Edw in L. Unger, Asst. Cashier
W. E. Brown, C ashier
H. C. Messerer, Asst. Cashier
M ember F ed eral Reserve System
Member F ederal D eposit Insurance Corporation
W -w h a t do w e do— s a lu te or w h is tle ?

Northwestern Banker Septem ber 1943

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Federal Reserve Bank of St. Louis

110

• IOWA
W e have chosen th e Sw eet Girl
G raduate m ethod alm ost to th e point
of suffocation. I don’t know w h a t w ill
happen w hen “A uction Sale” tim e
sta rts so we m ay have to tak e th e
o th er procedure and “To H eck ” w ith
th e o th er bank.

End Mob Tax Rule
M illions of people subject to s trin ­
gen t new incom e ta x law s are begin­
ning to find out th e m eaning of th e
expression “The pow er to ta x is the
pow er to destro y .” T axes m u st be
paid, even if it m eans d estroying living

NEWS

stan d ard s and th e sacrifice of accus­
tom ed luxuries. H ow ever, these things
can be tolerated providing th e b urden
is sh ared equally by all. U n fo rtu n ate­
ly, th e tax law s are far from equitable.
F o r y ears taxes have been proposed
and levied upon no sounder basis th a n
a cry to soak-the-rich. T his kind of
m ob tax rule w ill w reck productive
in d u stry, and eventually individual
freedom , if continued in th e face of
drastically rising taxes w hich w ill soon
be tak in g 25 p er cent of th e total n a ­
tio n al income.

C orn an d the W a r
E ffort
A m erica n eed s pork, lard, beef and dairy
products. T hese ''body-building", ''vitamin-rich''
foods produced m ost econ om ically in Iow a and
adjoining states, are p layin g a lead in g role in
the w ar b y im proving the health of our nation.

The production of livestock products is very
la rg ely d ependent on corn - - the m ost w id ely
u sed livestock feed.

This year, over one-half

of the farmers in Iow a depend on Pioneer for
all or a part of their seed corn requirem ents.
T hey know from exp erience that Pioneer g iv es
highest p ossib le y ie ld s of excellent feed.

Those

extra b u sh els of Pioneer corn w ill m ean extra
pounds of livestock products n eed ed

for a

more effective w ar effort.

P io n e e r H i-B red C o rn Co.
DES MOINES. IOWA

G a rs t & T h o m a s
COON RAPIDS. IOWA

Northwestern Banker September 1943

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

•
Some of th e w o rst inequities in our
tax stru c tu re relate to corporate tax ­
ation. C orporations are th e in stru ­
m ents by w hich our g reat w ar produc­
tion has been achieved, and y et the tax
law s are directed w ith special vengence tow ard them as though they
w ere a m enace. H arold V. Bozell, p res­
ident of the G eneral T elephone Corpo­
ration, clearly describes th e evil of
double taxation of corporations: “. . .
U nder p resen t law s one h u n d red peo­
ple doing business as ow ners of a cor­
poration w ould in th e end, th ro u g h
taxes on the corporation itself and
th ro u g h taxes on th e dividends they
w ould receive from corporations, pay
m uch m ore in taxes th a n those same
one h u n d red people w ould pay doing
th e sam e business as a p a rtn e rsh ip en­
terp rise . . . th e corporate form of busi­
ness is th e only practical solution so
far devised in th is co u ntry for handling
businesses of certain sizes and kinds,
and our p resen t m ethods of taxing the
earnings of th a t business . . . plus
again taxing th e individual on the divi­
dends received, m eans th a t those p a r­
ticu lar people are taxed according to a
. . . p unitive form ula.”
The governm ent is asking m uch and
the people are giving w illingly. B ut
th ey should insist th a t th ey be p er­
m itted to give equally. W here revised
tax law s are req u ired to atta in fairer
distrib u tio n of th e tax burden, they
should be revised w ith o u t delay.

Mass Distribution
After the W ar
Stanley J. Goodman, w ritin g in
H arp ers Magazine, observes that: “Dis­
trib u tio n , a less dram atic subject now
th a n production, will becom e a m ajor
economic problem w hen the w ar is
over. W ith in d u stry deprived of its
biggest m arket, only a sw ift and enor­
m ous increase in civilian consum ption
can take up th e slack and m otivate the
pro m p t reconversion of p lan t to peace­
tim e needs.” He th e n describes the
rise of th e m odern m ass d istribution
system as developed by th e chain
stores, and goes on to show how th a t
system m u st be encouraged and devel­
oped even m ore fully if th e startlin g
new products of in d u stry th a t are now
being diverted to w ar, are to be m ade
quickly available to th e consum ing
public at reasonable prices in peace­
tim e.
C ontrary to th e belief of some, m ass
d istrib u tio n does not m ean d istrib u ­
tion exclusively by large establish­
m ents. As Mr. Goodman points out,
“. . . G reat size is not necessary for low
cost operation, and th e economies of

Ill

-•
trem en d o u s buy in g pow er are not as
su b sta n tia l as those of efficient opera­
tion . . . a really w ell m anaged local
sto re can often outdistance n o t only
th e big city stores, b u t th e low-cost
chains as well.
“D istribution, u n lik e production, is
destined alw ays to be th e g re a t field
for sm all en terp rise. T he capital re ­
quired to set up a store can be so
sm all, and th e m echanics of retailin g
seem so fam iliar to all, th a t th e re is a
co n stan t flow of new sm all en terp rise
into th e field. T rue, th e m o rtality is
high, b u t those w ho survive can look
forw ard to p len tifu l o p p o rtu n ities to
increase th e ir business, eith e r by en­
larging th e ir store or becom ing a chain.
T h a t is precisely how p re se n t chains
originated, and from th is fertile soil
th e m ass d istrib u tio n of th e fu tu re w ill
em erge.”

IOWA

•-

Is New Director
B. J. Craig, director, vice p resident
and tre a su re r of th e F o rd M otor Com­
pany, w as elected a d irector of The
M anufacturers N ational B ank of De­
tro it at a m eeting of stockholders on
th e ten th an n iv ersary of the bank,
held last m onth.
In connection w ith th e m eeting,
H en ry H. Sanger, ch airm an of the
board of the bank, announced th e p ro ­
m otion of th ree officers and th e selec­
tion of nine new officers from th e em ­
ploye staff of th e bank. L. George

Bott, second vice president, w as nam ed
a vice president; C harles A. Stoll, au d i­
tor, w as m ade a second vice president,
and W alter C. L eonhardt w as pro­
m oted from a ssistan t credit m anager
to credit m anager. Officers chosen
from em ployes were:
R ussell A. K ruger, second vice p resi­
dent; T hom as A. K enny, Raym ond W.
Ladendorf, C hester J. M eldrum , H a r­
old H. R app and George R. W ellings,
a ssistan t cashiers in th e com m ercial
b anking departm ent; A lexander N.
G ardner, a ssistan t cashier in th e for­
eign banking departm ent; J. Donald
★

★

AVAILABLE HERE

One Per Cent Cushion
In d u strie s are th e sam e as individ­
uals. T hey m u st have a living w age
if th ey are to o perate and m ain tain
m axim um em ploym ent. T hey are u n ­
like individuals in th a t th ey cannot
strik e for m ore pay. An in d u stry con­
tin u es to serve th e public as long as
possible. If th e tim e comes w hen it
no longer earn s a living wage, it q u iet­
ly ceases to exist. Men are th ro w n
out of w o rk and th e public no longer
receives its services. Today th e e a rn ­
ings of m any in d u stries are perilously
squeezed betw een risin g costs and th e
b attle to hold dow n prices. N otable
am ong these in d u strie s is retail dis­
trib u tio n .
The retail in d u stry as a w hole is
conscientiously fighting ag ain st h ig h er
prices. M erchants realize th a t th e life
of m odern d istrib u tio n re sts on prices
th a t encourage volum e sales. As prices
inch higher, volum e inevitab ly falls
off. C onsum ers are sim ply unable to
b u y w h at th e y desire, and th e sta n d ­
ard of living spirals dow nw ard. Re­
tailers, chain stores in p articu lar, have
absorbed as m uch as possible of th e
risin g costs. P rofit m arg in s for some
groups have dropped to 1 p er cent of
sales or less. T his 1 p er cent cushion
is th e w age upon w hich large seg­
m en ts of th e d istrib u tio n in d u stry
m u st som ehow survive. If a rb itra ry
price ceilings or th e p ressu re of costs
cu t m aterially into th e paper-thin m a r­
gins of retailers, th e in d u stry cannot
live anv m ore th a n could th e w o rk er
w hose pay envelope failed to m eet the
living costs of his fam ily.
In asm u ch as th e co u n try cannot get
along w ith o u t an efficient d istrib u tio n
in d u stry , th e re is no alte rn a tiv e ex­
cept to assu re it a living wage.

NEWS

—COMPLETE IN FO RM A TIO N O N
GOVERNM ENT SECURITIES
b a n k s seeking the current
inform ation on Governm ent securities are
invited to consult this bank. Officers with wide
experience in this specialized field will help you
select Governm ent issues to fulfill your invest­
m ent requirements. If you wish to enter sub­
scriptions for Governm ent offerings, our com ­
plete facilities are available for handling your
transactions quickly and efficiently. Telephone,
telegraph or write us for inform ation or bid
and asked quotations.

O

u t - o f -t o w n

Our Semiweekly Quotation Sheet of U. S. Gov­
ernment issues w ill he mailed at your request.

Bond Department

THE N O R T H E R N
TRUST COMPANY
50 S O U T H LA SALLE S T R E E T , C H IC A G O 9 0 , IL L IN O IS

Member Federal Deposit Insurance Corporation
Telephone Franklin 7070 • Teletype CG 368

★

★
Northwestern Banker September


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

112

• IO WA
Orth, a ssista n t tr u s t officer, and E d ­
w in F. Schulz, auditor.
“E ach of th e tw elve m en prom oted
by th e b an k ,” said Mr. Sanger, “w as
w ith M anu factu rers N ational w hen it
opened for business ten y ears ago,
A ugust 10, 1933. The D etroit b anking
experience of these m en now averages
m ore th a n 25 y ears.”

W ar Bond Drive
W ith F o u n d er A. P. G iannini p erso n ­
ally in com m and, m ore th a n 10,000
em ployes of th e B ank of A m erica
th ro u g h o u t C alifornia have launched

NEWS*

a drive to sell to individual pu rch asers
an additional to tal of $300,000,000 in
W ar Bonds by th e end of Ja n u a ry
next.
T erm ing it th e opening of an offen­
sive on the th ird front, G iannini
sta rte d th e drive w ith a radio appeal
to all em ployes as th ey assem bled for
w ork last m onth. Radio sets had been
installed in each of th e nearly 500
bran ches of th e b ank to receive the
m essage.
“In th is struggle of peoples against
oppression,” he told th e staff, “th ere
are th ree basic fro n ts—th e b attle front,

Fellow B an k ers!
W ishing You Plenty of Steam
On the 3rd W ar Loan Drive
In September!

the production fro n t and the financial
front. H ere in California we of the
B ank of A m erica have th e opportunity
to m ake ourselves th e spearhead of
th e financial, th e th ird fro n t.”
He said th a t w hile in th e 20 m onths
since P earl H arb o r his “boys and g irls”
had retailed over $300,000,000 w o rth of
E, F and G Bonds, he w anted to see
th a t figure doubled w ithin th e next six
m onths. “I have not over-estim ated
your patrio tism ,” he declared. “I
know you can do it.”
The drive is being liberally sup­
ported w ith a broad cam paign of new s­
pap er ad v ertisin g and publicity, sup­
plem ented by outdoor billboards, lobby
displays, folders, badges and other
p rin ted aids, and th e possibility of ef­
fective radio program support is being
studied. E ach b ranch has been as­
signed a quota, and the staff m onthly
new spaper, The B ankam erican, is to
carry a m onthly tab ulation of progress
tow ard th e goal, as well as publish
o th er new s of the drive and sales guid­
ance.
In his address to th e staff, G iannini
said th e cam paign w ould be of imm ence assistance to th e T re a su ry ’s
new W ar F inance Com m ittee organiza­
tion. He quoted th e statem en t of
H en ry M orgenthau, Jr., Secretary of
th e T reasury, th a t 25 p er cent of the
m oney needed to com plete w ar financ­
ing needs for 1943 should come from
th e purchase of bonds by individuals.

C ontract

to

Back the Attack

First National Bank
M ASO N CITY, IOW A
S ince 1869
A G ood Bank to lie to
M em b er F e d e r a l D ep o sit I n su ra n ce C orp oration

Northwestern Banker Septem ber 19^3

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

An en terp risin g im presario who was
anxious to engage Madam P a tti for a
concert tour, called a t h e r hom e one
afternoon to discuss term s.
“How m uch w ill you take for a sea­
son’s tour, M adam P a tti? ” he asked.
“$100,000,” w as th e p rom pt reply.
“$100,000!” exploded the producer,
his eyes alm ost popping out of his
head. “Good H eavens, wom an, th a t’s
m ore th a n we pay th e P resid en t of the
U nited States!”
“In th a t case,” said th e singer, rising
ab ru p tly from h er chair, “w hy don’t
you get the P resid en t to sing for you?”

K n ew H is W orth
A farm er, in g reat need of extra
hands at haying tim e, finally asked Si
W arren, a tow n character, if he could
help him out.
“W h at’ll ye p ay ?” asked Si.
“I ’ll pay w h at y o u ’re w o rth ,” an ­
sw ered th e farm er.
Si scratched his head a m inute, th en
announced decisively, “I ’ll be darned
if I ’ll w ork for th at!”

113

A s k s P. G A . Investigation
E follow ing le tte r of in te re st w as
recen tly from R obert
T Hreceived
M anley, se cretary of th e C om m it­
tee on Subsidized C om petition of th e
N ebraska B an k ers A ssociation, m en­
tioned by Mr. M anley, and by a reso­
lution d raw n up by th e N ebraska com ­
m ittee. The le tte r reads:
“The N ebraska B an k ers A ssociation
has m aintained, for several y ears past,
th a t th e dangerous-to-banks subsidized
lending agency is th e Production
Credit System , w hich is th e one th a t
com petes for bankable loans. O ther
agencies lend m ainly for social and
em ergency purposes to clients lacking
th e credit req u ired by b an k s—obvi­
ously w asteful, b ut not com petitive.
“E ig h t m onths ago our association
sub m itted to th e A m erican B ankers
A ssociation a w ritte n req u est th a t A.
B. A. officially advocate: F irst, th a t
the P roduction C redit System be re ­
quired to re tu rn its capitalization to
th e U nited States T re a su ry or pay in ­
te re st on its fu rth e r use, and Second,
th a t Congress investig ate th e F a rm
Credit A d m in istratio n ( p a r e n t of
PCA).
“A t th e C entral States m eeting of
S ecretaries on Ju ly 16, 1943, Vice P re s­
iden t W iggins, of th e A. B. A., a n ­
nounced a six-point pro g ram w hich he
proposes for A. B. A., th e first and
m ajo r point of w hich reads as fol­
lows:
“ ‘Secure a w idening a u th o rity for
th e com m ittee in v estig atin g th e F a rm
SECURITY (not F a rm C R ED IT Ad­
m in istratio n , nor even u n d er it) Ad­
m in istratio n , so as to include th e PCA
and th e Seed and Feed L oan.’
“The N ebraska B ankers Association,
th ro u g h its C om m ittee on Subsidized
C om petition, w hile applau d in g th e
idea of a com plete investigation,
deprecates linking P roduction Credit
A ssociation w ith F a rm S ecurity Ad­
m in istratio n and th e Feed and Seed
Loan because such inclusive action
scatters th e a tta c k and b rings in con­
fusing issues. T he com m ittee urges,
in th e form of a reso lu tio n to th e fo rth ­
com ing A. B. A. convention, an in ­
vestigation of P roduction C redit As­
sociation independently, so th a t th e
principles and issues involved in these
investig atio n s do not becom e confused
and th ereb y w eakened.”

A. B. A. Proposed Program
1. Secure a w idening a u th o rity for
th e com m ittee in v estig atin g th e
F a rm S ecurity A dm in istratio n so
as to include PCA and th e Seed
and F eed Loan.

2. Secure th e in troduction of a bill
w ith th e pro p er bi-partisan spon­
sorship to re tu rn to th e govern­
m ent th e one hun d red and tw en ty
m illion dollars of capital now fu r­
nished th e Production C redit Sys­
tem.
3. Provide th a t an y m oney ad­
vanced by w ay of loans to PCAs
for capital purposes bear an in ­
te re st ra te of 3 p er cent per
annum .
4. Provide th a t th e expense of the
P roduction C redit C orporation
shall be paid by assessm ent on
P roduction C redit Associations.
5. Provide th a t th ere shall be no
solicitation of loans for PCAs by
any em ploye of the G overnm ent
o th er th a n those paid by th e
PCAs.
6. R equire tru th in ad vertising of
PCAs th a t w ill force th em in
th e ir ad v ertisin g to state all costs
in connection w ith loans in ad­
dition to th e in te re st ra te borne
by th e loan and including th e re ­
q u irem en t of stock purchases. We
are w orking on a bill containing
these provisions, and it is subject
to fu rth e r changes as we go along.

1943, w i t h r e c o m m e n d a t i o n of th e N e ­
b r a s k a B a n k e r s A s s o c i a ti o n t h a t i t be
a d o p te d .

W H ER EA S, governm ent subsidies
are now recognized on all sides as
probably th e g rav est danger co nfront­
ing our N ation, and
W H ER EA S, the use of subsidies
sim ply passes on to a fu tu re genera­
tion costs w hich should be individu­
ally m et out of c u rre n t generous in ­
comes, and in continually broadening
th e use of subsidies, th e governm ent is
deliberately p u rsu in g a policy th a t will
lead to loss of confidence in th e sound­
ness of our governm ent and to n a ­
tional bankruptcy, and
W H ER EA S, subsidies continue to
increase th e pow ers of grow ing
bureaucracy, w hich seeks m ore and
m ore m oney to increase these powers,
th u s enabling governm ent to achieve
u n iversal control and com plete reg i­
m entation of th e activities subsidized,
and

Resolution

W H ER EA S, an all-out effort is being
m ade on th e p a rt of th e governm ent to
tak e over all financing operations in
the ag ricu ltu ral field th ro u g h loans
m ade directly by th e governm ent and
by governm ent subsidized and con­
trolled lending agencies, and

F o r P r e s e n t a t i o n to th e R e s o l u t i o n s
C o m m i t t e e of th e 1943 C o n v e n t i o n of
th e A m e r i c a n B a n k e r s A s s o c i a t i o n to
be h e ld at th e W a l d o r f A s t o r i a H o t e l
in N e w Y o r k C i t y in S e p t e m b e r of

W H ER EA S, th e Production Credit
System is th e spearhead of this drive
and its com petition is cu ttin g at th e
very roots of th e A m erican system of
independent u n it banking, and

T h e P O W E R of the

P R IN T E D M ESSAG E
is today more potent than ever a s a m eans of creating
individual a s well a s group interest a n d insuring action.
P aper is the prim ary basis of such m essages. Your
printer will find the p a p er y o u need in the well-main­
tained NEWHOUSE line.

NEW HOUSE PAPER CO M PA N Y
"Patten. P'usiUtUf PajxenA."
M inneapolis

St. Paul

Des Moines

Molina

Dubuque

Northwestern Banker September 1943

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

114
W H ER EA S, th is serious situation
dem ands im m ediate action and cor­
rection if th e co u n try banks serving
th is nation are to be saved from de­
stru ctio n as th e re su lt of this unfair,
unsound and uneconom ic governm ent
com petition,

GREETINGS!
. . . and a hearty w elco m e
to visitors to the Iow a

NOW, T H E R E F O R E , BE IT R E ­
SOLVED, th a t th e m em bers of the
A m erican B ankers Association, in con­
vention assem bled, do hereby a u th o r­
ize and direct th e officials and m em bers
of th e E xecutive Council and related
com m ittees to fo rth w ith and fo rth ­
rig h tly seek and to vigorously support
a congressional investigation of th e
P roduction Credit System in order th a t
th e tru th as to soundness of m ethods
and cost of operations m ay be ascer­
tain ed and given to the m em bers of
th e Congress and to th e tax p ay ers of
th is N ation, for such ap p ro p riate con­
gressional action as m ay be req u ired
to protect th e fu tu re of th e A m erican
system of independent u n it banking
and to g uard against its destruction
th ro u g h governm ent lending opera­
tions set up u n d er th e guise of w ar
necessity, and

Bankers A s s o c i a t i o n
C onvention
NORRIS F. CROSBY
TOM CARRON
JOE B. HILL
PAUL DEAN

AMERICAN
L IT H O G R A P H IN G
and Printing Company
BANK

STATIONERS

DES MO I N E S . I O WA
Third and Keosauqua W ay

B E I T F U R T H E R R E S O L V E D , th a t
s u c h c o n g r e s s io n a l i n v e s t i g a t i o n be
l i m i t e d s t r i c t l y a n d e x c l u s i v e l y to th e
P r o d u c t i o n C r e d it S y s t e m so th a t th e
p r i n c i p l e s a n d is s u e s i n v o l v e d in th is
p articu lar in vestig a tio n m a y n ot be­
c o m e c o n fu s e d a n d c o m p l i c a t e d w i t h
th o s e of a n y o t h e r a g e n c y .

H u n d red s of b a n k s n o w b u y th eir
ration b a n k in g s u p p lie s from u s.

J --------------------------------- V
7 2

Years

L engthening casualty lists carry th e ir
own tragic story.
In addition to stepping up produc­
tion, th e ream s of red tape entangling
retail d istrib u tio n m u st be rem oved.
R ationing and price regulations m ust
be simplified. A ttem pts to stop infla­
tion by bludgeoning retail prices back
to low er levels, regardless of costs,

Farm Production
Is

Vital
To the War Effort
Our b u sin ess system applied
to tenant-operated farms not
on ly insures m axim um produc­
tion, w h ile restoring and m ain­
taining fertility, but also relieves
ow ners of m an y War-Time
worries.

FARMERS
N ATIO N AL
COMPANY
388-396 B ra n d e is T h e a tr e Bldg.

Om aha, N ebraska

Nonsense Must Cease
One effective w eapon against infla­
tion is g reater production of consum er
goods. Taxes and bonds can n ever be
m ade to absorb all of th e w ar inflated
earn ings of th e people. M oreover, it
is becom ing evident th a t price ceilings
are a lim ited success. Therefore, to
help m ain tain stability th ere m u st be
sufficient production of necessities to
fu rn ish an outlet for consum ers’ dol­
lars. If th ere is no such purchasing
pow er outlet and w ages continue to
spiral upw ard, accom panied by a stro ­
nom ical g overnm ent borrow ing, th e in ­
evitable re su lt w ill be m ore and m ore
inflation.

of co n fid en ce
Diamond purchasing ultimately
becomes a m atter of confidence
in the store in which you buy.
Josephs’ diamonds are accurate­
ly graded, correctly priced and
afford a lifetime of enjoyment.
Iowans have chosen here with
confidence for 72 years.

C ivilian production should not be
curbed any m ore th a n is absolutely
necessary to arm am en t dem ands. The
nonsense of artificial restrictio n s on
production m erely to m ake th e people
realize th ey are at w ar, m u st cease.

O S E PH S
JEWELERS SINCE 1871
Sixth at Locust—Des Moines

a ___________________ r

Field Supe rviso rs
At 14 Io wa and Nebraska Points

FARM MANAGEMENT
“From the Gr ound Up ”

We’ve had our problems in the past, and
we’ve successfully met them. We have
our problems today—and with your help,
we can overcome them again.
Though selections may not be large and
substitute merchandise displayed—rest
assured we are doing our best to serve
your immediate requirements—and at the
same time enthusiastically support our
country in the ’All-Out War Effort."
"Buy U. S. Bonds and Stamps"

2 1 s t y e a r p la n n in g a d v e r t is in g p r o g r a m s
io r b a n k s a n d tr u s t c o m p a n ie s . .
W r i te io r P r o g r a m K e y e d to W a r T im e s .

C o u n s e l

o n

B a n k

D . R . W E S S L IN G , P R E S ID E N T

Northwestern Banker Septem ber 19b3

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

P

u

b l

i c

R e l a t i o n s

<zA/[oLnz±, fJotva

STATIONERS V 1889 V BOOKBINDERS
OFFICEOUTFITTERS\ ^ ” ^^BUSINESS MACHINES
G rand Av e . at Fourth

D e s M o in e s , Ia .

should be abandoned before th e dis­
trib u tio n in d u stry is dem oralized. The
average m erch an t, chain store in p a r­
ticular, o perates on paper-thin m a r­
gins.
If th e “get to u g h ” th e o rists p ersist
in h u n tin g for excuses to cu rtail p ro ­
duction and d istrib u tio n , in stead of
h u n tin g for m eans to achieve g re a te r
production and m ore efficient d istrib u ­
tion, th e co u n try w ill have not only in ­

G reetin g s
to
Io w a B a n k ers
★ ★ ★

Des Moines Bank
and Trust Co.
310 S ix th A v e n u e

★

★

★

G. B . J e n s e n , P re s id e n t
A . W . C ro ssa n , V ice P r e s id e n t
H . F . G a ll, C a sh ie r

N ow going
on o u r
8 3 rd year
of selling
q u a lity
a p p a re l
fo r M en
and Boys

F R A N K E L 'S
D E S M O IN E S

flation, b u t th o usands of crippled in ­
dustries. A nd instead of being able to
sit in W ashington issuing decrees from
sw ivel chairs to cooperative, organ­
ized retailers, th e price fixers w ill be
forced to chase up and dow n th e back
alleys of the nation in a vain atte m p t
to catch black m ark et operators.

Cards on the Table
E vidence piles up to indicate th a t
th e re not only is a determ ined effort
being m ade in th is co u n try to m ake
th e g overnm ent suprem e in th e lives
and affairs of every individual, b u t
th a t th ere has long been a definitely
w orked out program to accom plish
th a t end.
W e have seen th e electric pow er in ­
d u stry dom inated by a deliberate p ro ­
gram to socialize it. W e have seen the
credit and banking m achinery of the
nation slow ly b u t surely dom inated by
centralized au th o rity . W e have seen
th e ow ners of coal m ines jockeyed out
of control and operation of th e ir p ro p ­
erties. W e see definite evidence of an
a tte m p t to have th e g o vernm ent step
into th e field of oil production, in spite
of th e record service ren d ered by the
A m erican oil industry. And now th ere
are w arnings th a t A m erican railroads
m ay be used as a springboard for a
v ast postw ar program of socialized
public w orks.
The foregoing “softening u p ” of p ri­
v ate en terp rise all ties in w ith th e clev­
erly prep ared program of th e N ational
R esources P lan n in g Board. I t has been
rep eatedly pointed out in th e press and
in C ongress th a t m any officials on our
public payrolls are w orking for, or
directing th e boards and bureau s th a t
have been planning a program of state
socialism as an o th er “em ergency” p ro j­
ect w hen th is w ar is over.
It is no exaggeration to say th a t th e
day is rapidly approaching w hen we
m u st decide w h eth er w e w an t to re ­
m ain free citizens or trav el th e road of
governm ent-dom inated serfs.
T h at th e danger to free enterp rise is
recognized is indicated by recen t new s
rep o rts from C incinnati, w here W il­
fred Sykes, p resid en t of th e In lan d
Steel Com pany of Chicago, in a public
address said th a t in d u stry m u st ask
th e tw o m ajo r political p arties to p ro ­
claim w h eth er th e y are for free e n te r­
p rise or ag ain st it. Mr. Sykes m ight
have said, w h eth er th ey are for free
citizens or against them , because th ere
can be no free citizens w ith o u t free
enterprise. You are no longer a free
m an w hen you are dependent on gov­
ern m en t for yo u r daily job, y o u r shel­
te r or yo u r bread and b u tter.

S a v e 3 6 to 67%
in w r i t i n g y o u r
p a y r o l l s ............
with the N E W

Shaw-Walker

K O P I-S P O T

Pay Roll S y stem
In ONE F a st, A ccu ra te O p er a tio n , y o u w rite
ALL R eco rd s e s s e n t ia l to th e E m p lo y er, Em­
p lo y e e , a n d U n c le S am ! R ew ritin g fig u re s
is e lim in a te d — n o c h a n c e for errors— a lw a y s
u p -to -d a te.
SIMPLE— INEXPENSIVE
NO MACHINE— NO SPECIAL TRAINING
W rite T o d a y for Inform ation a b o u t th is M od­
ern P a y R oll S y ste m — or v is it th e S p e c ia l
S h o w in g a t ..................................................................

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J ------------------------------------N

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Service
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A ddressing, M ultigraphing,
Typing, M im eographing,
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Northwestern Banker Septem ber Î9b3


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116

— • IOWA
G e t Data on P C A
Operations
Data on th e operations of th e P ro ­
duction C redit A ssociations w hich th e
A m erican B ankers A ssociation has de­
veloped and used in its fight against
socialized and subsidized cred it has
been broken dow n on a state-by-state
basis and sen t to th e association’s

Welcome
to
I o w

a

Bankers

NEWS • -

m em bers th ro u g h o u t th e co u n try for
th e ir use in th e ir ow n areas to help
th e banks to fight th is com petition on
th e ir hom e grounds.
A separate study has been prepared
for each state. It lists the PCAs in th e
state, to g eth er w ith th e dollar volum e
of loans each one had o u tstanding on
Ju ly 1, 1942. It show s the loan in te r­
est ra te advertised, th e average effec­
tive ra te to the borrow er, th e rate the
PCA w ould have had to charge if it
paid its operation expenses out of earn ­
ings and th e ra te it w ould have had to
charge if it paid in te re st on its govern­
m en t subscribed capital, in addition to
earn in g its expenses, th e ratio of gov­
ern m e n t capital to total capital and
reserves, and the total subsidies re ­
ceived by th e PCAs du rin g th e year.
The data is based on the published re ­
p o rts of th e PCAs.
The analysis for th e en tire nation
show s th a t nearly half of th e PCAs in
th e co untry lost m oney in 1942 and
could not have continued in operation
w ith o u t governm ent subsidy. It fu r­
th e r show s th a t if operating on th e ir
own feet the average PCA w ould have
to charge a h ig h er rate th a n the cu r­
re n t effective rate and a still h igher
ra te if, in addition, th ey w ere to pay a
m oderate in te re st charge for th e use
of th e ir governm ent capital.

To Hold Conference

You Can
A lw ays

BANK
ON
finding G o o d F ood
at the

HOTEL FORT
DES M O IN E S
Coffee Shop
'Northwestern Banker Septem ber 1943

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Federal Reserve Bank of St. Louis

A Conference on School Savings and
Schools a t W ar w ill be held by th e
C om m ittee on School Savings of the
Savings Division, A m erican B ankers
A ssociation, a t th e association’s W ar
Service M eeting in New Y ork City,
Septem ber 13th-15th.
The School Savings and Schools at
W ar C onference w ill be held on
W ednesday afteroon, Septem ber 15th,
follow ing the ad jo u rn m en t of th e W ar
Service M eeting’s th ird general ses­
sion.
The program for th e conference fol­
lows:
Call to O rder — F red F. L aw rence,
C hairm an, Com m ittee on School Sav­
ings Savings Division, A.B.A.; T reas­
u rer, Maine Savings Bank, P ortland,
Maine.
A ddress — “School Savings P rogram
and Schools at W ar—A Review of
th e School Y ear 1942-43,” Mr. L aw ­
rence.
A ddress—“P reserv in g th e E ducational
V alues of the Schools at W ar P ro ­
gram ,” Dr. H om er W. A nderson, As­
sociate Field D irector, E ducation
Section, W a r F i n a n c e Division,
U nited States T reasu ry D epartm ent.
Open F o ru m — Leaders: Jam es A.
Sweeney, Secretary, P aterso n Sav-

ings In stitu tio n , P aterson, New J e r­
sey; Jam es W. Gray, Secretary, Roch­
ester Savings Bank, R ochester, New
York; R alph W. M atteson, T reasurer,
Savings B ank of New London, New
London, Connecticut.
Topics:

Topics:
1. W h at are the best w ays of coor­
d inating school savings w ith the
Schools at W ar Program ?
2. How can banks best cooperate
w ith educators?

T w e n ty -fo u r
Y e a r s of

Hawkeye Mutual Hail
Insurance Association
Carver Bldg.

Fort Dodge, Iowa

LETTERS THAT WORK
M u ltig rap h in g —M im eo g rap h in g
M u ltilith in g
A ddressing— M ailing
■
M any B ank and In v estm en t
H ouses are o u r clients. P ro m p t
service to o u t of tow n custom ers.
■

WORK LETTER SERVICE
723 Securities Bldg., Des Moines

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

Oldest and Largest in Des Moines
411 6th Ave.

Dial 4-7119

E L M E R E . M IL L E R
P r e s , and S ec.

H U B E R T E . JA M E S
A ss t. Sec.

FO R Y O U R E N J O Y M E N T . . .
L iste n to th e
“ W O R L D O F M U S IC ”
K SO , 1460 KC

9 :3 0 -1 0 :0 0 a. m . S un d ays

117
3. H ow far should a b an k extend it­
self in fu rth e rin g th rift education?
4. Is school savings ban k in g an ade­
q uate th r if t education program ?
5. W h at is th e p o stw ar fu tu re of
school savings?
6. W h at plan of action should be
ta k e n to in su re a successful and
contin u in g th rift program in every
com m unity?

Go

t f n è e x

¿ A

E ugene W. Stetson, p resid en t of th e
G u aran ty T ru st C om pany of New
York, has announced th e ap p o in tm en t
of J. B rougham W allace, Jr., and W il­
liam C. L ang as second vice presidents.
Both w ere form erly a ssista n t tre a s u r­
ers and w ith th e ir new ap p o in tm en ts
continue to be identified w ith th e com ­
p a n y ’s b an k in g departm en t.
Mr. W allace has been w ith th e G uar­
an ty since 1928 and th e ban k in g de­
p a rtm e n t d istrict w ith w hich he is
associated handles th e com pany’s re ­
latio n sh ip s in th e states of New York,
New Jersey, M aryland, D elaw are and
th e D istrict of Columbia.
Mr. Lang, w ho is w ith th e ban k in g
d e p a rtm e n t’s p ersonal division, has
been associated w ith th e b an k for
m an y years, h aving served w ith th e
N ational B ank of Com m erce p rio r to
its m erg er w ith th e G u aran ty in 1929.
N ext y e a r w ill see an even bigger
acreage of corn p u t in. T his m eans
som e farm ers w ill be p lan tin g on th e
sam e ground. It w ill tak e fertilizer to
get big yields u n d e r those conditions.

In spite of th e fact th a t b u tte r is 10
points a pound, w hole oleo and re ­
w orked “process b u tte r” are only 4
points each, consum ers continue to
gobble up all th e b u tte r available.
Q uality b u tte r w ill ap p aren tly outsell
an y com petitors w hen people have
cash to spend.

Iow a cash incom e is ru n n in g ju st
th re e tim es w h a t it did before th e w ar,
tw ice w h a t it w as in 1929, eleven tim es
w h a t it w as in 1932. F o r instance, in
May, 1932, Iow a cash farm incom e w as
$21,360,000; in May, 1943, Iow a cash
farm incom e w as $137,267,000.

In spite of th e g re a t im provem ent in
th e corn crop, th e re is still a lot of
poor corn th a t w o n ’t beat th e frost.
Get ready to p u t th is in tre n c h silos.
It w ill still m ake a lot of feed.

v

e

r t i s e

r s

A

L

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 ..........
5
A l l i e d M u t u a l C a s u a l t y C o m p a n y ............. 49
A. C. A l l y n a n d C o m p a n y ................................... 56
A m e r i c a n B a n k R e p o r t e r ................................. 94
A m erican L ith o g ra p h in g a n d P r in tin g
C o m p a n y ...................................................................114
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 .. 107

G e o r g e L a M o n t e a n d S o n ................................. 25
L e s s i n g A d v e r t i s i n g C o m p a n y ........................115
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 . . . .1 08
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 .......... 80
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

B

Promotions

d

B a l l a r d H a s s e t t C o m p a n y .............................. 58
B a n k e r s T r u s t C o m p a n y — D e s M o i n e s . . 83
B a n k e r s T r u s t C o m p a n y — N e w Y o r k . . . 34
C a r l e t o n D . B e h C o m p a n y ................................. 58
B u r r o u g h s A d d i n g M a c h i n e C o .....................103
C

C a p i t a l C i t y S t a t e B a n k — D e s M o i n e s . . . 98
C a r n a h a n , T. D . — M i n n e s o t a M u t u a l L i f e 52
C e n t r a l L i f e A s s u r a n c e S o c i e t y .................. 42
C entral N atio n al B an k and T ru st C om ­
p a n y — D e s M o i n e s .......................................2 0 -2 1
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 ......................... 99
C ity N a tio n a l B a n k a n d T r u s t C o m ­
p a n y — C h i c a g o ..................................................... 96
C ity N a tio n a l B a n k a n d T r u s t C o m ­
p a n y — K a n s a s C i t y ........................................... 78
C o n tin e n ta l Illin o is N a tio n a l B a n k a n d
T r u s t C o m p a n y .................................................. 33
C o n t i n e n t a l N a t i o n a l B a n k — L i n c o l n . . . . 79
C o p elan d , J a m e s H .— N o r t h w e s t e r n
•> M u t u a l L i f e I n s u r a n c e C o m p a n y .......... 52
C o u n c i l B l u f f s S a v i n g s B a n k .......................... 100
C r a h b e , T h o m a s L., a n d C o m p a n y ............. 59

I)
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 ............ 52
F . E . D a v e n p o r t a n d C o m p a n y .................79 -9 2
D a y , N e w e l l C.— E q u i t a b l e L i f e o f I o w a 54
D eM aris, R a l p h E .— C o lu m b ia n N a ­
t i o n a l L i f e I n s u r a n c e C o m p a n y ............... 48
D e s M o i n e s B a n k a n d T r u s t C o ..................... 115
D es M oines 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 ............................................. 116
D i r e c t A d v e r t i s i n g , I n c ......................................... 115
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 orp. ...1 0 5
D r o v e r s N a t i o n a l B a n k ....................................... 102
E

E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 45
E n y a r t , J . C ................................................................. 56
E p p l e y H o t e l s C o m p a n y ................................... 60
F

F a r m e r s N a t i o n a l C o m p a n y — O m a h a . . . 114
F a u l k n e r , W . H . — C r u m a n d F o r s t e r . . . 47
F e d e r a l I n t e r m e d i a t e C r e d i t B a n k s . . . . 57
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 ............. 37
F i r s t N a t i o n a l B a n k — B o s t o n ................... 28-2 9
F i r s t N a t i o n a l B a n k — C e d a r F a l l s ..............109
F i r s t N a t i o n a l B a n k — C h i c a g o .................... 90
F i r s t N a t i o n a l B a n k — M a s o n C i t y ..............112
F i r s t N a t i o n a l B a n k — M i n n e a p o l i s .......... 62
F i r s t N a t i o n a l B a n k — O m a h a ....................... 76
F i r s t N a t i o n a l B a n k — St . J o s e p h ............... 78
F i r s t N a t i o n a l B a n k — S t. L o u i s .................... 32
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 ............... 91
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 .................. 36
F i s h e r C o m p a n y ..................................................... 92
F is h e r an d F is h e r— C o n n ecticu t M u ­
t u a l L i f e .................................................................... 53
F r a n k e l C l o t h i n g C o m p a n y ...........................115
G

G e n e r a l M o r t g a g e C o r p o r a t i o n .................... 59
G e t t y s , L o y d B .— M u t u a l L i f e o f N e w
Y o r k ............................................................................ 53

II
H a r r i s T r u s t a n d S a v i n g s B a n k .................. 66
H a r t f o r d F i r e — C. D. W h e r r y ....................... 48
H a w k e y e C a s u a l t y C o m p a n y ......................... 47
H a w k e y e M u tu al H ail I n s u ra n c e A sso ­
c i a t i o n ........................................................................116
H o m e I n s u r a n c e C o m p a n y ..............................
4
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 . . . . 44
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 .................... 50
H o t e l F o r t D e s M o i n e s ..........................................116
H u g h e s , J. J . — N o r t h w e s t e r n M u t u a l
L i f e I n s u r a n c e C o m p a n y .............................. 49

I
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 . . 48
Io w a D es M o in es N a tio n a l B a n k &
T r u s t C o m p a n y .................................................... 120
Io w a S tate B an k and T ru st C om pany
— I o w a C i t y .......................................................... 99
I r v i n g T r u s t C o m p a n y ...................................... 72
J

J a m i e s o n a n d C o m p a n y ...................................... 67
J o s e p h J e w e l r y C o m p a n y ................................ .114

K
K a l m a n a n d C o m p a n y ........................................ 65
K o c h B r o t h e r s ....................................................... 114

M

M c C o rm ic k , F r a n k L.— E q u i t a b l e
L i f e o f I o w a ...............................................
53
M a r s h a l l C o r n s a n d C o m p a n y ....................... 60
M a t t e s o n , B a r n e y T.— G e n e r a l A m e r i ­
c a n L i f e I n s . C o m p a n y ................................. 50
M a x w e l l , C h a r l e s M .— C o n n e c t i c u t
G e n e r a l L i f e I n s u r a n c e C o m p a n y . . . . 51
M ercan tile C om m erce B a n k a n d T r u s t
C o m p a n y ................................................................. 26
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . 54
M e r c h a n t s N a t i o n a l B a n k ..................................2-3
M id lan d N a tio n a l B a n k a n d T r u s t
Com pany
...................................................................64
M i l l O w n e r s M u t u a l I n s u r a n c e C o ............ 38
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 .......... 40
M i s s i s s i p p i V a l l e y T r u s t C o m p a n y ..............106
M o r r i s P l a n C o m p a n y ............................................ 116
M u r d o c k , D e a r t h & W h i t e ................................. 61
N

N a t i o n a l B a n k o f W a t e r l o o .........................
N a t i o n a l C i t y B a n k o f N e w Y o r k .............
N a tio n a l F ir e G ro u p — W . H. H a r r is o n .
N e l s o n , M. C.— E q u i t a b l e L i f e A s s u r ­
a n c e S o c i e t y .......................................................
N e w h o u s e P a p e r C o m p a n y ............................
N e w Y o r k T r u s t C o m p a n y ..............................
N i e m a n n , W . K . — B a n k e r s L i f e C o ..........
N o r t h e r n T r u s t C o m p a n y ............................
N o rth w e st S ecu rity N ational B ank
— S i o u x F a l l s .....................................................
N o rth w e s te r n N a tio n a l L ife In s u ra n c e
Com pany
............................................................

.101

.

6

. 48

. 50
.1 13
. 94
. 47
.1 1 1
. 70
. 44

O
W . R . O l s o n C o m p a n y ........................................ 65
O m a h a N a t i o n a l B a n k ...................................... 19
O t t o , P a u l C.— C o n n e c t i c u t M u t u a l
L i f e I n s u r a n c e C o m p a n y .............................. 51

P
P e o p l e s S a v i n g s B a n k — C e d a r R a p i d s . . 109
P e o p l e s S a v i n g s B a n k — W a t e r l o o .............104
P h i l a d e l p h i a N a t i o n a l B a n k ............................ 95
P i o n e e r H i - B r e d C o r n C o .................................... 110
P r i e s t e r a n d C o m p a n y ........................................ 61
P ru d en tial Insu ran ce C om pany—
S i d n e y A. K e n t ..................................................... 51
P u b l i c N a t i o n a l B a n k a n d T r u s t C o . . . . 94

R
R e a d , T h o m a s B .— M u t u a l L i f e of
N e w Y o r k ............................................................... 52
S

S t. J o s e p h S t o c k Y a r d s C o m p a n y ............... 77
S t. L o u i s T e r m i n a l W a r e h o u s e C o ................ 119
S t. P a u l T e r m i n a l W a r e h o u s e C o m p a n y . 31
S c a r b o r o u g h a n d C o m p a n y .................4 6 - 8 2 - 8 6
S e c u r i t y N a t i o n a l B a n k — S i o u x C i t y . . . 105
S e ltz e r, M a r t i n L.— K a n s a s C ity L ife
I n s u r a n c e C o m p a n y ........................................ 54
S h a w , M c D e r m o t t & S p a r k s ............................ 58
S n o w , E . H.-— A e t n a L i f e I n s u r a n c e C o . . . 49
S t a t e F a r m I n s u r a n c e C o ................................ 53
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 . . 74
S to ck Y a rd s N a tio n a l B a n k — S o u th
St. P a u l .................................................................... 67
T
T o d d C o m p a n y .......................................................... 96
T o y N a t i o n a l B a n k — S i o u x C i t y .................. 84
U

U n i o n B a n k a n d T r u s t C o.— O t t u m w a . . 93
U n i t e d S t a t e s N a t i o n a l B a n k — O m a h a . . 35
U n i t e d S t a t e s T r e a s u r y D e p a r t m e n t . . . . 73
V

V a l l e y S a v i n g s B a n k — D e s M o i n e s ............. 87
AV

W a n t A d ............................................................
W a l l a c e - H o m e s t e a d C o m p a n y ..........
C h a r l e s E . W a l t e r s C o m p a n y ...............
W a t e r l o o S a v i n g s B a n k ...........................
W e b s te r Life In s u ra n c e C o m p a n y ..
J a y A. W e l c h ....................................................
W e s s l i n g S e r v i c e s ...................................
W e s t e r n M u t u a l F i r e I n s u r a n c e Co
W h e e l o c k a n d C u m m i n s .......................
W i l l i s a n d M o o r e ........................................
W i t h e r s , W i l l i a m R .— S u n L ife
A s s u r a n c e ..................................................
W i t m e r - K a u f f m a n E v a n s C o ..............
W i t t e n s t e i n , M. a n d C o m p a n y ..........
W o r k L e t t e r S e r v i c e .................................

84
97
78
85
45
93
114
41
60
56
51
49
59
116

Z
Z aisers

.........................................................................115

Northwestern Banker Septem ber 19 k3

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

118

IN THE DIRECTORS' ROOM
“F a r from it,” replied th e diner. “As
a m a tte r of fact, I hate ’em—b u t I ’m
n u ts about bicarbonate of soda.”

H ell to H itler
H itle r died and w en t “below ”. Satan
answ ered his knock, told him to w ait
a m inute, w en t aw ay, and re tu rn e d
w ith a box of m atches and a bundle
of firewood.
He gave both to H itle r w ith th e re ­
m ark: “L isten, Adolf, th e re ’s a lim it to
w h at even we can stand. Take these
and s ta rt a hell of y o u r ow n.”

T elling H im Off
The old sailor h ad re tire d from th e
sea. E ach m orning a g ru b b y y o u n g ster
knocked at his door, w en t in and cam e
out again. A fter th is had gone on for
some w eeks th e curiosity of th e vil­
lagers w as aroused.
“Tell m e,” said one to th e youngster,
“w hy do you v isit th a t old sailor every
m orn in g .”
“W ell, sir, he gives m e a q u a rte r if I
say to him , ‘The captain w an ts you
im m ediately.’ ”
“And w h at does he say to th a t? ”
“He says, ‘Tell th e captain to go to
blazes.’ ”

A bsentm inded
“T h e re ’s som ething odd about you
th is m orn in g ,” said H itle r to Goering.
“Yes—I know w h a t it is. F o r th e first
tim e since I ’ve know n you, y o u ’ve left
off y o u r m edals.”
Goering looked dow n at his chest.
“G reat heavens!” he cried. “I forgot
to tak e them off m y pajam as.”

G etting D ow n
A v ery tall m an applied a t th e fire
d ep artm en t for em ploym ent and th e
follow ing conversation took place be­
tw een him and th e su p erin ten d en t:
S uperintendent: “Now, Mr. Brow n,
suppose th is building should catch fire
and you w ere in th e second story;
w h at w ould you do?”
A pplicant: “W ell, boss, th e only
th in g I know of w ould be for me to
step out th e w indow and slide dow n
on m y leg.”

U n eivil
W orking in a m unitio n s factory, a
m an let his coat get cau g h t in a re ­
volving wheel.
He w as w hisked up and w hirled
ro u n d and ro u n d till th e forem an
m anaged to sw itch off th e m achine.
The w ork m an fell to th e g round and
up ru sh ed th e forem an.
“Speak to me, speak to m e,” he said.
“W hy should I?” said th e w orkm an.
“I passed you six tim es ju s t now, and
you d id n ’t speak to m e ! ”
Northwestern Banker Septem ber 19b3

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

A ll B ut
Taking No Chances
Jones w as w aiting for a bus w hen a
stra n g e r approached and asked the
tim e. Jones ignored him. The stran g er
repeated th e request. Jones continued
to ignore him. W hen the stran g er
finally w alked aw ay an o th er passenger
said curiously: “T h at w as a perfectly
reasonable question. W hy d idn’t you
tell him w h at tim e it w as?”
“W hy?” said Jones. “L isten, I ’m
stan d in g here m inding m y ow n busi­
ness and this guy w an ts to know w hat
tim e it is. So m aybe I tell him w h at
tim e it is. T hen w hat? W e get to ta lk ­
ing and th is guy says, ‘How about a
d rin k ? ’ So we have a drink. T hen we
have some m ore drinks. So afte r a
w hile I say, ‘How about com ing up to
m y house for a bit to eat?’ So we go up
to m y house and w e’re eating ham and
cheese in t h e k i t c h e n w h e n m y
d a u g h ter comes in, and m y d a u g h te r’s
a v ery good-looking girl. So she falls
for th is guy and he falls for her. T hen
th e y get m arried, and any guy th a t
can ’t afford a w atch I don’t w an t in m y
fam ily.”

B y A p poin tm en t
T he big business m an had died and
gone to—well, n ot to heaven. B ut
h ard ly had he settled dow n for a nice
long sm oke w hen a h e a rty han d
slapped him on th e back, and into his
ear bloomed th e voice of a p ersisten t
salesm an w ho had pestered him m uch
on earth.
“W ell, Mr. S m ith,” chortled the
salesm an, “I ’m here for th e appoint­
m en t.”
“W h at ap p o in tm en t?”
“W hy, don’t you rem em ber?” the
salesm an w en t on. “E v ery tim e I en­
tered y o u r office on earth you told me
y o u ’d see me here!”

A M atter of Taste
A m an sat dow n at a lunch counter
and ordered four poached eggs and
chips, a dozen oysters, and a grilled
steak.
A fter w ading th ro u g h these he
finished off w ith four doughnuts and
tw o cups of coffee.
W hen the w aiter had finished serv ­
ing, he rem arked: “You m u st enjoy
y o u r m eals.”

>

The w hole regim ent knew th a t the
B ritish colonel w as a bad horsem an.
W hen th e order to m ove off w as given,
the band stru ck up th e regim ental
m arch. The colonel’s horse w as not
fond of m usic, and everybody w as in ­
terested in its antics, so in terested th a t
the fro n t ra n k of th e first com pany
bunched up in the middle.
“E ase off,” shouted an officer.
“No ’e a in ’t,” shouted a recru it, “but
’e soon will be.’*’

M ore Im portant
She planted h erself firm ly in front
of him and g ritte d h er teeth.
“H en ry ,” she snapped, “you th o u g h t
I d idn’t see you, b u t I did. You kissed
th e m aid.”
He paled. “But, darling, you asked
me to try to persuade h e r to stay
an o th er w eek.”
H er a ttitu d e changed a t once.
“Oh, H enry, tell me quick—did she
prom ise to stay ?”

A

Solution
It w as a very dissatisfied te n a n t w ho
approached the landlord of the new
house.
“Look h ere,” he said, “th a t house
I ’ve ju st tak en from you is horrib ly
draughty. I ’ve sp en t a lot of m oney
on h e a t i n g a r r a n g e m e n t s , b u t
w h erev er I sit m y h a ir is blow n all
over m y head. C an’t you do som e­
th in g about it? ”
The landlord shook his head.
“I ’m afraid not,” he replied. “I th in k
it w ould be easier and cheaper for you
to get yo u r h a ir cut.”

Duds
Gasoline r a t i o n i n g w ill p u t the
co untry on its feet.
The easiest job in the w orld is th a t
of th e Italian m in ister of Colonies.
T here are 47 rules for w inning a
w ar. T he first is to fight. N ever m ind
th e o th er 46.
It w as S herm an w ho said, “W ar is
hell.” B ut we have im proved the situ a­
tion, so th a t today w ar is hell on
wheels.
So sw ift w as th e N orth A frican
roundup th a t Nazi generals w ere cap­
tu red before h e a rt attack s could be
ordered from B erlin.

K

Field Warehouse Loans to manu­
facturers help speed production
for the Armed Forces.

LEN D

W A R E H O U S E R E C E IP T S

furnished

by St. Louis T erm in al W areh o u se Co*

F

ield W areh ou sin g is doing a n outstanding job today
in h elp in g m any m anufacturers to in crea se produc­
tion an d step up deliveries to our A rm ed Forces. For
exam p le, on e food processor stepped up his production
2 7 5 % in just a few months a s a result of a St. Louis
Term inal field w areh ou se loan.

Field Warehouse Loans aid
the "Food for Freedom" pro­
gram when applied to wheat
or grain.

M any bankers w ho are fam iliar with Field W arehous­
in g do not realize how g rea t a n opportunity there is in
m aking these loan s. N early every town h a s som e potential
borrowers w ho c a n use field w areh ou sin g profitably—
both to the borrower a n d the banker. C ertainly every
m etropolitan center h a s dozens of com p an ies that could
profit by its m any a d v a n ta g es.
It w ill p a y you to get full details on our m ethod of
h an d lin g field w areh ou se installations. Send the coupon
today. There's no obligation, of course.

)OS'*4 0


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

To ST. LOUIS TERMINAL WAREHOUSE CO.
828 Clark Avenue, St. Louis, Missouri
□ Without obligation please send me complete in­
formation on Field Warehouse Inventory Loans.
□ Have a representative stop in to see me.

IowaDes Moines
National Bank

—
-—----

& Trust Co .
U
1943
O
SEPTEM BER

M em ber F e d e ra l D epo sit
Insu rance C o rp o ra tio n

This money, to finance the invasion phase of the
W ar, must come in large part from patriotic citi­
zens of just ordinary means— men and women on
payrolls, farmers, business men, every individual
who has a spare dollar to invest in Freedom.

W e have this strong 5-point sales story to offer:
1. Uncle Sam's need for more money with which
to fight the W ar is imperative.
2. Citizens are asked to len d their money at a
generous rate of interest; the Government is not
asking anyone to ¿ ive anything.
3. W ar Bonds are today's best investment.
4. Purchase of W ar Bonds helps prevent inflation.
5. Dollars put into W ar Bonds build peacetime
purchasing power.

To insure the success of the Drive, it is the duty and
the responsibility of Iowa Banks and Bankers to pre­
pare for and to carry through an all-out W ar Bond
sales effort among investors, large and small, in
every community in our State.

The more frequently and the more intelligently we
tell this sales story, the better the average Iowan
will understand the wisdom and necessity of invest­
ing every available dollar in W ar Bonds N O W .

Starting September 9th, our Government will con­
duct the greatest drive for dollars in the history of
the world— the 15 billion dollar Third W ar Loan.
Iowa's quota has been set at 196 million dollars, to
be raised from non-banking sources.

BACK THE ATTACK

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

With War Bonds!