Full text of The Northwestern Banker : September 1944, Forty-Ninth Year, Number 686

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ALONG

LA

SALLE

S T R E E T , IN

C H IC A G O

A . B . A . Convention in Chicago Septem ber 24-27

A . B. A . W a r Service Meeting

lowa W a r - W o r k Conférence

Pages 23 to 32

Pages 87 to 118


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PLANNING TODAY -fo r TOMORROW
As loyal Americans, all hankers are contributing their
utmost to the Victory effort.

As far-siglited business leaders

we must also Think, Plan and Act so our hanks may meet
the vast requirements of the Postwar Era of Tomorrow.
Problems of this nature will receive most earnest at­
tention at both our Iowa Bankers Association Convention
September 3-4 and at the American Bankers Association
Convention September 24-27.

W e urge our many corres­

pondents throughout the middle west to attend and profit
from these meetings.

O F F IC E R S
James E . Hamilton, C h airm an
S. E . Coquillette, P resident
H . N . Boyson, V ice P resident
Roy C. F olsom, V ice P resident
Mark J. Myers, V ice P res. & C ash ier
George F. Miller, V . P res. & T r. Officer
Marvin R. Selden, V ice P resident
F red W . Smith , V ice P resident
John T. Hamilton II, Vice President
R. W . Manatt , A s s is ta n t C ash ier
L. W . Broulik, A s s is ta n t Cashier
Petek Bailey , A s s is ta n t Cashier
R. D Brown, A s s is ta n t Cashier
0 . A . Kearney, A s s is ta n t Cashier
Stanley J. Mohrbacher, A s s t. C ash ier
E . B. Zbanek , B u ild in g M an ag er


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THE

MERCHANTS
NATIONAL BANK
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

*

Northwestern Banker, published monthly by the De Puy Publishing Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c
per copy, $3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879.


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Northwestern Banker September

4
-4 .

T he Public N a t io n a l B ank
AND TR U ST COMPANY OF NEW YO R K
P»
l

3 7 B roa d S treet

y
%
>~

CONDENSED
OF

STATEMENT

CONDITION

at the close of business, June 3 0, 1944
R E S O U R C E S

Cash and Due from Banks__________________________________
U. S. Government Obligations------------------State, Municipal and Corporate Bonds______________________
Loans and Discounts_______________________________________
Customer’s Liability under Acceptances____________________
Banking Houses__________________________________________
Other Real Estate Owned--------------------------------------------------Federal Reserve Bank Stock________________________________
Accrued Interest Receivable________________________________
Other Assets_____________________________________________

$ 69,939,163.48
208,057,120.41
7,541,099.73
93,696,074.45
1,304,566.51
1,992,587.86
55,143.66
480,000.00
674,174.94
127,025.93

Total______ ___________________________________ $383,866,956.97

V

LIABILITIE

Capital______________________________________ $7,000,000.00
Surplus _____________________________________ 9,000,000.00
Undivided Profits____________________________ 3,881,305.74
Dividend Payable July 1, 1944_________________
Unearned Discount__________________________
Reserved for Interest, Taxes, Contingencies____
Acceptances Outstanding_____________________
Less: Own in Portfolio____ ¡._______________

____________
____________
____________
$2,256,560.50
786,631.00

$ 19,881,305.74
150,000.00
303,800.66
3,018,234.79

V-

1,469,929.50

Other Liabilities_____________________________
Deposits_____________________________________

106,094.62
358,937,591.66

Total------------------------------------------------

$383,866,956.97

>

S ecu rities w ith a h o o k va lu e o f $52,256,715.17 in th e a b o v e sta tem en t are p led g ed
to secu re p u b lic and trust d ep osits ( in clu d in g U. S. W ar L oan d ep o sits o f
$50,235,055.54) and fo r o th e r p u rp o ses r e q u ired or p e r m itte d b y law.
M EM BER : N. Y. CLEARING HOUSE ASSOCIATION
• FED ER AL RESER VE SYSTEM
FEDER AL D EPO SIT INSURANCE CORPORATION

*

\

Northwestern Banker September 1944


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FOR VICTORY
on WAR and HOME FRONTS
Banks Lead the Way
C In War Bond sales.
C In encouraging farmers to grow more
At the A .B .A . Convention the Midland will be represented by
Vice Presidents W . E. Brockman and Larry O. Olson, who will
be glad to see their old friends and make new ones.

food for the war effort.
* In the financing of war industries and
private enterprise.
* In

carrying

on

not

only

their

own

business but devoting time to important
war activities, despite heavy losses of
employes

and

officers

to

the

Armed

Forces.
I W e point with pride, therefore, to the
big war job Bankers are doing, and are
happy

to

have

as

our

associates

so

large a group of correspondents engaged
in this great and patriotic effort.

MIDLAND NATIONAL BANK


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AND TRUST COMPANY OF MINNEAPOLIS
Deposits Over Fifty Million Dollars
★

Member Federal Deposit Insurance Corporation

★

F I G H T I N G D O L L A R S ^ LAUNCHED THIS SHIP
and below is the historic
check presented to Secretary
of the Navy, Frank Knox, in
celebration of that fact > . . .

. . ,

— i

L e t's a it
BACK THE ATTACK

When the people of Atlanta learned that their proud
namesake cruiser, the U.S.S. Atlanta, had been sunk
in the Solorpons, they not only saw red — they saw
Red. White and Blue. {( <{ That very day, they set
out to raise the m oney for a bigger and better
"Atlanta." They organized a War Bond Drive which
will go down in history. In less than 60 days they raised
over $63,000,000 — going way beyond their quota, with
enough left over to build two destroyer escorts to ac­
company the new Atlanta. ({ {{ The climax of this
spectacularly successful War Bond Drive —initi­
ated by the people of Atlanta and participated
in by other loyal Georgians—was the presenta­


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tion to Secretary of the Navy Knox of a token check for
$63,397,897.50 by John L,. Conner, Chairman of the
"New Atlanta Ciuisei Committee." ({ {{ And it's not
surprising that this historic check was on La Monte
Safety Paper for a great majority of the Banks in the
State of Georgia use this product to safeguard against
alteration and counterfeiting the checks they them­
selves issue and those they supply to their depositors.
For samples of La Monte Safety Paper see your
Lithographer or Printer — or write us direct.

U M m jyU & n m
GEORGE LA MONTE <S SON

( J

/N U TL EY. NEW JERSEY

Ï

7

T h e fo llo w in g letters ivere re c e iv e d
fr o m N orth w estern B a n k er readers,
y o u r v ie n s and o p in io n s on an y su b ­
je c t ivili b e glad ly p u b lish ed in this
colu m n .

"You Say What You Think"
“ I enjoyed those editorials in the August
N orth w estern B a n k er.
“ You have the 'g u t s ’ to say what you
think.
"S om eh o w I think the Democratic party
has a cancer in its system in the form of
the CIO and I would not be surprised if
these high handed boys drove a lot of good
Democrats out of the party.
'" H a d an inkling that Hanford MacNider
was in this country and it is a fact for he
is down east having some brass splinters
removed from his eyes. ’ ’
C h a r l e s B . M il l s , Former

President Iowa Bankers A s­
sociation, Box 357, Moline,
Illinois.

"No Dramatic Scenes"
Editor’s N o te: A

few months ago the
N o r t h w e s t e r n B a n k e r published a letter
from W a r r e n J o h n s o n , son of Alvin F.
Johnson, president of the Live Stock Na­
tional Bank of Omaha, telling of his ex­
periences overseas where he has now been
for over 18 months.
The following letter is from H o w a r d
J o h n s o n which was written while he was
enroute to his destination somewhere in the
Pacific.
Howard was a freshman at the
University of Nebraska and entered the
service in April, 1943.
The letter is ad­
dressed to his mother and we are sure our
N o r t h w e s t e r n B a n k e r readers will enjoy
this expression of a soldier’s feelings as he
leaves the States for the first time.
H igh Seas, July 31, 1944

‘ ‘ Dearest M other:
‘ ‘ H ad someone told me sixteen months
ago, when I entered the army, that today I
would be in this status, going overseas as a
private in the Infantry, I would have dis­
missed the idea as fantastic.
Y e t here I
am and I don’t begrudge it, nor am I the
least bit ashamed of my rank of private.
" I was quite surprised at the P .O .E . I
had anticipated it to be quite a gloomy time
with everyone moping around thinking what
it would mean to leave the States. On the
contrary, our spirits were high. The night
before I left, Paul and Irwin were down to
see me and we joked, chatted, and even
came forth with a few college songs. When
we parted that night with a salutation of
" s e e you over there” , it seemed no differ­
ent than of former moves from camp to
camp.
"S tr a n g e as it may seem, boarding the

(Turn to page 30, please)

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F O R T Y - N IN T H Y E A R

N U M B ER 686

Oldest Financial Journal West of the Mississippi River

IN THIS SEPTEMBER, 1944, ISSUE
Editorials
8

A cro ss the D esk fro m the P u b lish e r............................................................ _...........................

Feature Articles
D e a r E d ito r ....................................... ............................. .....................................................................
F ro n tisp iece .................................. ....................... ................................... ........ ......................... .........
W h e n the B oys Come H om e A g a i n ..................................................................... 11, 12, 13,
W h e n an H e ir Ow es an E sta te — L e g a l D e p a r tm e n t.................................... .................
Go A f t e r S av in gs A cco u n ts N o w ..... ........ ............................................... Leslie K . Curry
N ew s and V iew s o f the B a n k in g W o r ld ............................................ ..Clifford D e P u y
L et Y o u r B a n k S tatem en t Be Y o u r S ilen t S a le sm a n ________ ___ _________ ________
W h a t Do Y o u T h in k ? ......................... ............................................................................................. .

7
101
14
15
16
18
24
38

The A. B. A. Convention
T he P ro g ra m in C h icago.............. ,......................................................................... ...................... 23
Chicago B a n k ers W elco m e A B A D e le g a te s......................................................................... 28
C hicago C om m ittee C hairm en— P ictu re s...................................................................... 30, 32

Insurance
L e t P ersonal P ro p e rty F loater Be Y o u r A ce in the H o le ............................................
M y F ir s t Case W a s a W a lk -I n ................................................................ Glenn F . Waugh
A L ab or S a v in g Insurance P olicy....................................... H en ry Scarborough, Jr.
L ife Insurance and F ree E n te rp rise .............................................. Robert L. Barbour
P ostw ar Traffic Is P roblem N o . O n e .......... ..............................................................................

45
48
51
54

57

Investments
B ank C red it fo r E v e r y Good B o rro w er.................................................................................. 61
H ow Som e Cities D odge T a x e s ........... ............................. ......................................................... 65

State Banking News
M innesota N ew s ..... ............................................................. ............................................................. 71
73
T w in C ity N e w s .......... ....................................................................
South D akota N e w s....................................... .................................. .............. .................................. 77
Com m ittee A p p o in tm e n ts ................................................................................................... 77
77
Sioux F a lls N e w s ........ ...................................... ............. ............................ ........................
N o rth D a k o ta N e w s .................... ................... .............................................. ..........................
79
F a r g o N e w s .............................. .............................. ........ ................... ............ .......................
79
N e b ra sk a N e w s .......................... .............. ........ ............. ........ ...................... ........
81
O m aha C learin gs ..... ....................... ....................... ......................... ..................
83

The Iowa Bankers Convention
W a r -W o r k Conference P r o g r a m _____ ____________ _____ _______ _____ ____ ..................... 87
See T hem at the Iow a C onvention........................................................................................... 94
Iow a Convention C om m ittee C h a irm en ................................................................................. 98
C andid ates fo r P re sid en t______ _____ ____ ___ _____ ’...........................
105
D es M oines N e w s .......................................... ....................... ........................ ..................................... 106
A . I. B. E x te n d s T ra in in g P ro g ra m ................................ ............................... ...........
113

The Director's Room
A F e w S h ort Stories to M ake Y o u L a u g h ........................................................................... 118

N O R T H W E S T E R N B A N K E R , 527 Seventh St., Des Moines 9, Iowa, Telephone 4 -8 1 6 3
C L IF F O R D DE PU Y , Publisher
R A LP H W. M O O R H E A D
Associate Publisher
H EN R Y H. H A Y N E S
Editor

RUTH K IL L E N
Associate Editor

E L IZ A B E T H C O L E
Advertising Assistant

M A R G U E R IT E B R O W N
Office Supervisor

BETTY M IL L E R
Circulation Department

N EW Y O R K O F F IC E
Frank P. Syms, V ice President, 505 Fifth A v e ., Suite 1 806

Telephone MUrray H ill 2-0326

Northwestern Banker September 1944-

8

Across the Desk

IheG/L Jleland Staiae:
Your recent book, “ They Shall Not Sleep,’
contains some very powerful paragraphs concern­
ing what we are not doing in helping to educate
our present armed forces about current economic
and political events.
The boys in the service, among other things,
are fighting for a system of government where
they can have freedom of thought and freedom of
speech yet they are deprived of this liberty in
the armed services and the ‘ ‘ Stars and Stripes
bans all controversial subjects and writers and
speakers are urged to avoid anything remotely
political. As one marine officer puts it in your
book, Mr. Stowe, “ I have never heard anyone
discuss what we are fighting for or what kind of
peace we ought to have. You never hear any­
thing like that. The only thing they teach us is
how to kill. That’s all, and that’s all you’re sup­
posed to think about.”
In another part of your book, you refer to
Russian prisoners who had been in prison camps
in North Africa for 4 years, and when interviewed
after they were released, one of them said, ‘ ‘ Amer­
icans generally do not show any political interest
at all. When we came here we met American
soldiers and were astounded by their ignorance.
We have been shut up from the outside world for
4 years. But we knew more of what is going on
in Europe than they did. Even the poorest peas­
ant knows more of what this war is about than
the American soldiers we have met. The British
soldiers we have met are not so far advanced in
their thinking as the people on the Continent but

Northwestern Banker September


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they have a much greater understanding of the
issues at stake than your soldiers.”
And yet we fight for Freedom of Speech and
increased education among our citizens.
We both agree, Mr. Stowe, that the average
American service man is basically as smart, or
smarter, than the fighting men of any other coun­
try, but certainly while a war is in progress, his
education on what we are fighting for and what
is going on in the United States should not be
banned from his thinking.
In this issue of the N orthwestern B anker , Mr.
Stowe, are some letters from boys in the service,
who were previously in the banking business, and
the N orthwestern B an ker , among other things,
asked them, “ What kind of a United States do
you want to come back to after the war?”
These letters are most interesting and show,
that in spite of what you say about not furnish­
ing our boys in the service with up-to-date reports
on current events, they are still doing their own
thinking and let’s hope will come back to us with
a more intelligent viewpoint on political and eco­
nomic problems of the day than some of the indi­
viduals with whom you talked on the various
battle fronts.
We think that the whole problem is pretty well
summed up by T. N. Richards, formerly con­
nected with the Northwest Security National
Bank of Sioux Falls, South Dakota, who is on
duty overseas with Uncle Sam’s Navy, when he
says, in a letter to the N orthwestern B anker ,
“ Another of my desires is that each individual
citizen take a more active interest in government
by closer attention to elections. Why not an elec­
tion, for a change, in which all eligible voters go
to the polls? That is the true idea of Democracy.
“ The solution to these problems all lie in one
field—Education.
“ Raise our level of free education for the mass­
es. Raise the compulsory education age. Make
our educational system a living up-to-the-time
organization. Shake the mustiness from its folds
and give new joy to people through liberal knowl­
edge. ’ ’
There, Mr. Stowe, we believe is the very thing
you are talking about and with which we sincerely
agree.
Whatever lack of information or discussion of
current events our boys in the service have been
deprived of while they are away, will have to be
made up through increased discussions and arti­
cles when they return.

9

From the Publisher
L et’s not lose our freedom of thought at home
while fighting for it around the world.

2>ea^i £leaaosi:
You almost caused us to have heart failure re­
cently, because you said a good word for business
and that, “ it is desperately important to us now.”
Have you forgotten that all business men, bank­
ers and industrialists are anathema to your New
Deal political polliwogs?
You said, “ Business is desperately important
to us NOW. It should be given every legitimate
help because we want the business enterprises of
the country to continue to function at top produc­
tion.
‘ ‘ Small businesses have always provided a great
many jobs, and it seems to me that both big busi­
ness and the public should be interested in seeing
small businesses get a break.”
You say, “ Business is desperately important to
us NOW.”
Why do you say NOW?
Business has always been important to us. It
is the lifeblood of our nation.
Business creates jobs, it creates payrolls, it pays
taxes—taxes, a part of which has been used to
hire 3,000,000 federal employes and build up the
greatest bureaucratic vote-getting machine in all
of our national history.
But, when war came and the United States des­
perately needed ships, planes, tanks, munitions
and jeeps, to whom did F.D.R. go for help?
Did he go to Harry Hopkins?
Did he go to Frank Hague?
Did he go to Ed Kelly?
Did he go to Earl Browder?
Did he go to Sam Rosenman?
Did he go to Ed Flynn?
Did he go to Robert E. Hannagan?
Did he go to Sidney Hillman?
No, he did n o t!
He went to the leaders of American business.
He went to Alfred Sloan.
He went to Henry Ford.
He went to the du Ponts.
He went to the Chrysler Corporation, and to
all the hundreds of other business leaders and
business organizations who had the ability, the
brains, and the genius to produce the sinews of
war, and dear Eleanor, during the last three years
these business executives and these American cor­
porations have done the greatest job in all the


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history of American manufacturing to help win
che war.
So, thanks, indeed, for giving business a pat
on the back, as it has been kicked around for
12 years by your perpetual candidate for the
Presidency.
‘ ‘ Business is desperately important to us NOW ”
— oh, yes, this is election year, isn’t it, dear
Eleanor?

If we remember correctly, you were supposed
to have been deported 6 years ago because of
your alien, communistic tendencies but you have
continued as the CIO leader of the west coast, and
therefore we were greatly surprised when you at­
tacked Attorney General Francis Biddle, who is
as friendly to the CIO racketeers as anyone could
possibly be.
In a recent article you said, “ As a liberal at­
torney general, as a defender of civil liberties,
as a protector of the nation’s security and the
war effort, Biddle is a big flop and a danger to
the common American people. He is a disrupter
of unity and a drag on the Roosevelt-Truman
ticket. ’ ’
As far as we are concerned, Mr. Bridges, you
should be out of the United States and Attorney
General Biddle should be out of office.
As far as Attorney General Biddle is concerned,
any laws, rules or regulations are okey as long
as they have the blessing of your fourth-term
candidate.
Have yon forgotten that in March 1942, in a
speech made at a dinner before New-Dealers the
toastmaster, before introducing the Attorney Gen­
eral, said, “ The New Deal is more dynamic than
fascism and more revolutionary than commun­
ism.” The Attorney General then responded by
saying, “ The success of the New Deal was due
to the fact that it was not just a group of theorists
or liberals, but it was a political party tied up
with the labor movement under an able political
leader and a vigorous labor movement gave it
strength. ’ ’
Shame on you, Mr. Bridges, for picking on At­
torney General Biddle when you are so nearly
“ two of a kind.”

Northwestern Banker September 1944

Northwestern Banker


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Federal Reserve Bank of St. Louis

September Í944

11

W hen the Boys Come

Home Again!
W hat Kind of a United States
Do They W ant to Find
When They Return?

W hat Do They Think of the
Future of Banking?

Will They Re-enter the Bank- '
ing Business When They
Com e Back?

Men in the Service W ho W ere Officers and Employes of Banks
in the Middlewest in Letters to the Northwestern Banker
Answer and Discuss These Questions

M

EN in the service who as civil­
ians were associated with mid­
dle-western banks have some
very definite ideas as to their future
and the future of the banking business
when this war is over, and they return
to their homes and jobs. This is dis­
closed in letters received from a num­
ber of bankers now in the service, in
this country and overseas, in response
to a request from The Northwestern
Banker for their answers to three
questions—What kind of a United

try where the pressure of small special
interest groups will not result in ac­
tions that are unfavorable to the coun­
try as a whole; a country to which

States do they want to find when they
return? — What do they think of the
future of hanking? — and AVill they
re-enter the banking business when
they come back?

While the views and opinions ex­
pressed in the letters published here
are from service men formerly asso­
ciated with banking, and their com­
ments relate to that business, we be­
lieve the letters reflect the thoughts of
most men in the service with regard
to their homeland and their future.
We suggest the letters be read with
the same thoughtful consideration the
writers of them gave when they were
penned in tent or foxhole.

"Banks Will Show Progressiveness"
Ut. Clifford C. Sommer, Amphibious

Training Base, Little Creek, Virginia,
with the Midland National Bank and
Trust Company, Minneapolis, Minne­
sota, before entering the navy: “ I be­
lieve that I am one of many who will
be quite satisfied if we can return to
a United States after the war that will
be as great as the United States prior
to December 7, 1941; a country where
there is freedom of speech and that is
governed by a majority who can ex­
press their will; a United States that
will regain its pre-war standard of liv­
ing with its possibilities of an even
higher standard in the future; a coun­

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LT. C LIFFO R D C. SO M M E R and his father,
CARL H. SO M M ER ,
President State Bank, Rush City, Minnesota

the service men can return and again
take their places in industry, office
and on the farm. In other words,
whereas, the United States may have
been far from perfect, yet it was and
is a great country in which to live
and I, for one, hope and trust it will
return to its normal ways.
“During nineteen months in the
service there has been little time for
me to keep in very close touch with
the banking business and its possible
future. However, I know it to be a
great business of long standing and I
see no reason why it should not re­
tain and even improve its important
position in this country.

“There should be considerable need
for financing of conversion of industry
to civilian production and financing
for many businesses that will be re­
opened after the war and many whose
production has been curtailed because
of an inability to get materials. It
seems to me that banking as a whole
will show the necessary progressive­
ness to seek after and satisfactorily
handle this financing which is right­
fully theirs, despite possible govern­
ment agency competition. Also, un­
doubtedly banks will continue to con­
tribute greatly to government financ­
ing by its purchase and holdings of
rather sizable amounts of government
bonds for many years to come. An
important field in postwar banking
will likely be that of installment loans,
and it seems to me that now is the
time to make plans for an immediate
and sizable expansion in this type of
quite profitable loan which is sure to
come immediately after the war. My
personal feeling is that all in all the
banks of the United States, during
this most trying war period have done
a good job of the financing of business
needs and a most remarkable job of
war bond sales and their own invest­
ment portfolio backing of this coun­
try’s financial needs.
“Many happy years of my life have
been spent in the banking business
and it is my intention to return to
banking when released from the serv­
ice.”

"Demand for Bank Financing"
Hammer
Field, Fresno, California, formerly an
employe of the Valley Savings Bank,
Des Moines, Iowa: “My association
with army men from all parts of the
United States has bolstered my faith
in the American citizen. After read­
ing the scare lines in the press of the
Cpl. Arthur O. Rystad,

Northwestern Banker

September 19Ü

12

W HEN THE BOYS COM E HOM E A G A I N . . . .
country it is easy to form the opinion
that we are headed for an era of such
conflicting emotions that conditions
are apt to get out of hand and beyond
control. But after having as my com­
panions honest, solid men of high
character and realizing that their peo­
ple at home must be of the same stock;
it is apparent that there is nothing
wrong with the United States that
given good leadership cannot be
solved.
“My experience in the army has led
me to believe that our enemies were
partially right when they based their
strategy on the premise that we as a
people were getting soft. I want to
return to a United States of tougher
fiber, a citizenry awake to the neces­
sity of individual effort and respon­
sibility. I believe that our strength as
a nation has to a large extent been
due to our being able to draw on men
for economic life who are bold, ag­
gressive and inventive. If we as a
people permit our lives to be regulated
and controlled by the state or by big
business we will gradually lose the
spirit that has made us great.
“ I want to return to a United States
that is not of the opinion that what
we get from the government is with­
out personal cost.
“ I want to return to a United States
where I can make a living without
looking either to government or a
large corporation as the source.
“ I want to return to a United States
that realizes that as long as we are
the richest of all nations we must ever
be prepared and on the alert to protect
ourselves.
“The war has built a tremendous in­
crease in bank footings and at the
same time a dwindling market for its
funds. A vast market and demand
has accumulated for goods of all kinds,
unobtainable because of the war, and
for replacement of goods and equip­
ment depleted during the war. Then
too, the war has spurred invention to
such an extent a large pool of new
and improved products are awaiting
processing for civilian consumption.
I look for a period of greatly increased
demand for bank financing to facilitate
the manufacture and flow of these
goods to the consumer. Banking busi­
ness should prosper.
“The banking business prospering
and my prospering in the banking busi­
ness are two very different angles.
With the war debt facing us we must
have an era of high prices to pay the
necessary taxes. This condition in the
past has worked to the disadvantage
and hardship of the white collar class.
“My return to banking depends
largely on ‘what’s cooking’ at the Val­
Northwestern Banker September

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Federal Reserve Bank of St. Louis

“ I want to return to a United States that is not of the opinion that
what we get from the Government is without personal cost— I want
to return to a United States where I can make a living without looking
either to Government or a large corporation as the source— / ivant to
return to a country which realizes that as long as we are the richest of
all Nations we must ever he prepared and on the alert to protect ourselves’
ley Savings Bank. If I do not return
to the Valley it is doubtful that I will
seek employment elsewhere in the
commercial banking field.”

"Young Ideas About Future
Progress"
Capt. Frank M. Silkebaken, with the
air corps overseas, formerly associated
with the Iowa Des Moines National
Bank and Trust Company, Des Moines,
Iowa: “ I want to come back to a
United States where the economic sys­
tem is founded on the principle of

CAPT. F R A N K M. S IL K E B A K E N

CPL. A R T H U R 0 . R Y S T A D

private enterprise and not that of a
bureaucratic socialized form of gov­
ernment. I want to come back to a
United States that really understands
what it means to be engaged in a
global war and will in the future take
the necessary steps to preserve peace
throughout the world. I want to come
back to a United States that has
thrown aside the shell of isolationism
and will assert itself in all world af­
fairs toward the goal of economic wel­
fare and peace for all nations. Lastly,
I want to come home to a United
States that has young optomistic ideas
about future progress. I want to come
home to a United States where every
young man will have the greatest pos­
sible chance to forge ahead.
“Many different factors enter into
the postwar banking picture such as
what attitude will the government
take in financing many projects. What
wage rates will remain in effect and
what sort of tax scale both income
and business will be used. Will there
be a period of depression or a period
of prosperity. I would like to see
private capital finance all of the new
industries that are expected to open
up after the war. I would like to see
government financing remain at the
lowest possible minimum.
“For myself it will depend to a great
degree on the kind of a future I could
make for myself whether I continue
in banking. By that I mean what
rates of pay will be forthcoming, what
chances for advancement are avail­
able and how rapidly they normally
arise. It will also depend on what
new industries are started and how
much other industries expand in the
postwar era. I say this because some
of the new industries that will arise
might appeal to some of us more than
continuing in banking. At any rate it
is a question that will be thought
about a great deal by all such fellows
as myself. I dare say aside from
thinking most about your wife or best
girl friend a fellow in the service
thinks next about what he is going to
do after the war. It is a question that
one could decide a dozen times while
away and yet never be sure of just
what he is going to do. I think it is
obvious to assume that the great ma-

13

W HEN THE BOYS COM E HOM E A G A I N . , . .
jority of us young fellows who entered
the service at the outbreak of the war
will be coming back much more grown
up than we were before we left. In
view of this they will want jobs giving
them the best chances for a future,
advancement in their jobs and rates in
pay.”

47 do not want m y tune in the service to hinder me or make anyone
feel obligated toward me.

If I manage to do a good job where I am

now, I’d just as soon make it up on the credit side of my personal
accomplishments and carry it as a memory, not a club.

I ask no more,

when I return, than to be given as much of a chance to get ahead as

/ had when I left.

Nothing more than that”

"A Chance to Get Ahead"

SGT. JO H N W . S. G A L L A G H E R

Sgt. John W. S. Gallagher, AAF

Base, Midland, Texas, who was a tell­
er with the First National Bank,
Minot, North Dakota: “ The United
States that I wish to return to is one
in which any returning soldier has a
chance to start a successful business
if he so desires. It goes without say­
ing that my desire includes the ability
to operate that business without gov­
ernment control. As for returning to
the ‘old job’ I should of course, like to
do so, but only if my employer wants
me. I do not want my time in the
service to hinder me nor make any­
one feel obligated toward me. If I
manage to do a good job where I am
now, I’d just as soon make it up on
the credit side of my personal ac­
complishments and carry it as a mem­
ory, not a club. I ask no more than
to be given as much of a chance to
get ahead as I had when I left. Noth­
ing more. Of course, I haven’t left
the United States yet, although after
two years in Texas I could almost
claim that I had!
“ I believe that the post war banking
picture will be focused more and more
on management and the smaller loans.
The rate of interest on investments
and commercial paper has stagnated
to such an extent that from a profit
making point of view return will more
and more depend upon amortized
loans and modern procedure and serv­
ice. I am speaking now of the socalled country banks. With the G. I.
Bill of Rights and other benefits of­
fered returning veterans, it seems to
me that quite a field should open up
in housing and small enterprise with
the government covering that part of
the loan that would most likely carry
the most risk. These loans would
in great part not be a ‘one time ven­
ture’ but would lead to more seasoned
loans as these businesses progressed.
“ Conversion loans are of course
something that must be worked out
individually and seem to me to be
quite a problem; but they in them­
selves are not of a recurring nature.
“Management, itself must not allow
the old methods to remain as the best
simply because they are the oldest.
Many new technical advances both in
operation and machines will result
from this war. Accounting systems
have been changed by many banks to

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Federal Reserve Bank of St. Louis

meet new needs in personnel and ma­
terial shortages. These new proced­
ures have shown the way to many
short cuts that adapt themselves to
particular size banks. These should
be studied with an eye toward saving
in the ‘little things’ that make an or­
ganization profitable.
“ Many new customers have been
brought into the banks during these
war years. If active selling is done
now banks will be able to serve a
wider range of people and through
wise charges turn the small accounts
into profitable ones.
“ I expect to continue in banking
upon my return.”

"Be Able to Enjoy Life"
CpI. Howard C. Cerney, somewhere

in the South Pacific, formerly with
the Merchants National Bank, Cedar
Rapids, Iowa: “We want the United

things of life. I doubt if we will want
to roam very far from home for a
while. Everyone’s home town is the
capital of the United States. All we
ask is a chance to earn a comfortable
living and be able to enjoy the fruits
of life. I think we would all appreci­
ate a short vacation when we get back
to make up a little for all the pleasures
we have missed. These things I don’t
believe will be denied us.
“Banking after the war will be good.
All the men coming back will want
to build their own homes or set them­
selves up in a business. The banks
would be smart in taking advantage
of these loans and cooperating with
the government in seeing that the
men receive them. I don’t believe the
small loan business will be very good
for awhile except in aiding the people
to buy a lot of the things they have
been needing. Car loans should be a
thriving business. The banks should
take advantage of these and keep all
that money from going back East.
“As far as I know I’m going to con­
tinue in banking when I return, which
right now seems a long time off.”

"Improvement In Good Living"

CPL. H O W A R D

C. C E R N E Y

States to be the same when we come
back—the best country in the world.
I believe it will be a better world.
There are going to be many improve­
ments in our ways of living. I be­
lieve we are going to come back better
men, more appreciative of the simpler

Capt. I . I j . Wright, A. A. F., Harv­
ard, Nebraska, trust officer of the
Central National Bank and Trust Com­
pany, Des Moines, Iowa: (Since writ­
ing this letter Mr. Wright has re­
turned to civilian life and once more
taken his place with the bank.) “From
the experiences we of the United
States have had, is there not reason to
hope and believe that in the postwar
nation we shall see a continuation of
effort in the common cause we have
made in pushing the war? We have
seen a prodigous task performed when
American business, labor and industry
converted to war production. My two
and a quarter years of army service
having been all on this side has af­
forded some opportunities to see some
of the effort and sacrifice that has been
made by the civilian population in
their support of the armed forces and
to see also something of the results in
the form of the vast stream of sup­
plies and equipment moving to the
supply depots. To see a formation of
the last new heavy bombers is an im-

Northwestern Banker September 1944

14

WHEN THE BOYS COM E HOME A G A I N . . . .
pressive object lesson. A nation that
can and has done these things in such
a volume is a nation that can in good
time reconvert and direct its great
facilities again to peaceful pursuits
with improvement in good living in
material ways and improvement of po­
litical institutions to the benefit of the
entire world community. We shall
need wisdom to direct such forces,
wisdom and interest in their direction
rather than their restraint.
“ It is my expectation to have a part
in the postwar banking field. Surely

" There should be a government set up and operated on an economi­
cal basis.
debt.

This calls for a definite plan for liquidation of the national

It also calls for thrift in Government operation.

The soldier is

risking his life for ivhat he believes to be right, and he expects his
representatives in Government to fight for ivhat they think right and
honest.

H e dislikes filibustering for personal gains”
M AJOR

“My particular interest is in the
trusts and estates department of bank­
ing. Here is a good modern public
facility to those bank patrons who
need and want it. The use of it has
been seen to be increasing each year.
It stands upon the same basis of man­
agement and fidelity in the care and
supervision of money, property and
credit as obtained in the field of com­
mercial banking and its value to the
community and to the bank stems
from the same simple but stern prin­
ciples.
“ It is my hope that prosperity and
good days ahead in the postwar bank­
ing field will continue to stand on
these and similar principles upon
which our successful banking institu­
tions have built themselves.”

A . E M SLEY

C H IT T E N D E N

Iowa: “ It’s naturally understood that
we servicemen want to come back to a
free country, and one that offers op­
portunities to us for a normal life as
a civilian again. We want work, and
a chance to progress. If we obtain
these privileges, then no serviceman
expects government compensation for
his services to our country.
“ I’m sure the postwar banking pic­
ture is a bright one. Many of us want
to buy or build a home, buy an auto­
mobile, and other items that complete
a married couple’s ambition. To do
this, they will look toward the banks
for loans, and government sponsored
benefits which will enable them to ful­
fill their ambitions. I’ll look for the

■><

-v

'“A Clean and Honest Country"

CAPT. IR A L. W R IG H T

it is as true as it ever was to say that
the banking institutions that ought to
thrive and grow are those that do so
on the basis of their value in their
communities, the value placed on them
by their patrons in return for sound
careful management, management
that keeps itself alert and enlightened
and while responsive to local demand
and need knows the principles of cau­
tion and self restraint that make for
soundness on the long pull.
“The successful supervised bank
loan makes a fast friend for the bank
and a profit which the borrower glad­
ly pays. The banks profit is not large
and it is known and agreed upon in
advance. It must have many of these
in order to prosper. The unsuccessful
loan is ruinous both to the bank and
to the borrower, only training and
management will avoid this latter re­
sult.
Northwestern Banker September


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Federal Reserve Bank of St. Louis

T/5 John I). Brockman, somewhere
in France, formerly a teller with the
Union Bank and Trust Company, Ot­
tumwa, Iowa: “As I write this I would
like to return to a United States very
similar to the one we left quite some
time ago, namely our baseball and
football games, movies, etc. There is
a change, however, which many serv­
icemen and myself would like to see.
that is the reduction of graft and
politics. I do not say that the political
conditions which exist today are en­
tirely a parent of contemporary par­
ties, but there are a few we want to
weed out—those few who resort to un­
democratic means to line their own
pockets. I am hoping that following
this war we can return, still united,
to help make a more clean and a more
honest country.
“ I believe that banking and banks
will follow closely the same rises that
will occur in our building and trans­
portation progress, a sharp upswing
immediatey following the war, tend­
ing to decrease slowly in the following
years to a high but stabilized plane.
“ I am hoping that I will be able to
return to my former position in the
bank.”

"A Chance to Progress"
Staff Sgt. L. A. DeMarco, Laredo
Army Air Field, Texas, who was with
the Valley Savings Bank, Des Moines,

V

A

S /S G T . L. A. DE M ARCO

banks assistance and I know many
others will. I believe the banks should
look forward to this coming boom, be­
cause service will be the main tool to
obtain this business.
“ I’ve always been very interested in
banking, and I do hope to return to it
when the war is over. After instruct­
ing and dealing very closely with
every type of man the services pro­
duce, I fully realize the importance
of a man being well qualified for the
(Turn to page 66, please)

■A

r

W hen A n Heir O wes A n Estate,
Can This Be Deducted from His Share?
OBART, an Iowa banker, died
leaving his estate, which con­
sisted of real and personal prop­
erty, to his three children. One of the
children owed his father money.
Should the distributive share of that
child in the decedent’s personal prop­
erty be diminished by the amount of
such indebtedness as an incident to
the winding up of the estate?

H

Yes. The person charged with wind­
ing up a decedent’s affairs, that is, the
executor or administrator, has a right
to retain enough of the personal prop­
erty from the debtor’s share of the es­
tate to satisfy the claim of the estate
against the debtor. The courts and
authorities uniformly agree that, the
right of retainer should and does apply
to the personal estate coming to a dis­
tributee or legatee who is indebted to
an estate. This is true in practically
all jurisdictions throughout the coun­
try.

Suppose that, in the preceding ques­
tion, Hobart’s property was all real
estate and there was no personal prop­
erty against which the right of retain­
er might be exercised. Would it be
possible to exercise such right against
the real estate?
Yes, in Iowa and a majority of other
jurisdictions. A minority of the courts
hold that the right of retainer does not
apply to real estate which descends or
is devised to one indebted to an estate.
Decisions following the majority rule
may be found in both of the Dakotas.
Nebraska holds with the minority.

As an incident to the two preceding
questions regarding retainer rights to
personal property and real estate go­
ing to debtor-heirs, it is interesting to
note that there are decisions by the
Iowa Supreme Court to the effect that
the right of retainer may not be exer­
cised against real estate unless the
debtor-heir is insolvent. Are such de­
cisions binding precedents at this
time?
No. In a very recent decision the
Iowa Supreme Court overruled its ear­
lier holdings to the effect that the right
of retainer could be exercised against
real estate only if the debtor-heir was
insolvent and held that such right

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Federal Reserve Bank of St. Louis

These and Other Timely Legal
Questions Are Answered
By the

LEGAL DEPARTMENT

could be enforced against real estate
even though the debtor-heir was solv­
ent.

The directors of a Minnesota savings
and loan association formed an insur­
ance agency. A substantial amount of
the agency’s business was the procure­
ment of fire insurance on property
upon which the association made
loans. The commissions on the insur­
ance were retained by the agency and
ultimately went to the directors.
Could the directors be compelled to
pay them over to the association?
No. The Minnesota Supreme Court
so held in a recent decision involving
facts similar to those outlined in the
question. One of the important rea­
sons given for the holding was that
savings and loan associations do not,
in that state, engage in the insurance
agency business and as a consequence,
it Avas no breach of faith toward the
association for the directors to set up
their OAAn company to do so.

Swanson, a South Dakota banker,
had two minor children. All three of
them were wealthy. The father acted
as guardian for the children. Could
he, in his guardianship accounts, se­
cure an allowance out of their estates
for his expenditures for their support?
No. A father, being under a legal
duty to support his minor children,
even if they liaA^e independent means,
cannot, as their guardian, be alloAVTed
anything out of their estate for their
support, unless he is financially unable
to support them. Since SAvanson aauis
able to support his children an allow­
ance would not be in order.

At the instigation of an Iowa bank
a mercantile establishment in that
state was placed in receivership in

the state courts there. The subject of
the receivership proceedings was in­
debted to numerous people and one of
its creditors sought to garnishee the
funds of the establishment that were
in the hands of the receiver. Could it
do so?
No. After a receiA'er takes charge of
the property and affairs of a concern
pursuant to appropriate and proper
court orders the funds in his posses­
sion are in custodia legis and cannot
be reached by garnishment or by exe­
cution.

Hill, a Minnesota banker, owned a
hotel in that state. One of his hotel
employes was a chambermaid who
worked certain fixed hours and re­
ceived, as part of her compensation,
room and board at the hotel. One eve­
ning, when she was not on duty or
call, she lost her balance while stand­
ing on a chair to close the window in
her room and fell to the floor, injuring
herself. Was she entitled to compen­
sation under the Workmen’s Compen­
sation Law of Minnesota?
No. In a recent decision the Minne­
sota Supreme Court held that injuries
sustained by a hotel chambermaid,
AArith fixed hours of work and board
and 1*00111 received as part of her com­
pensation, Avhen she lost her balance
while standing on a chair to close the
Avindow in her room at a time when
she Avas not on duty or subject to call,
did not arise out of her employment
Avithin the meaning of the Workmen’s
Compensation DaAV of Minnesota. A
someAAliat similar ruling has been
made in IoAAra regarding the AArorkmen’s compensation law there.

A Nebraska banker was accused of
embezzling certain funds that had
come into his possession. He did not,,
as an incident to the accusation, have
the assistance of counsel and did not
demand that counsel be assigned to
him. A prison sentence was imposed
upon him after a plea of guilty. Sub­
sequently he brought habeas corpus
proceedings claiming his imprison­
ment was illegal because he did not
have the assistance of counsel. Should
he prevail?
(Turn to page 50, please)
Northwestern Banker September 19'i4

16

The Time to G o A fter
Savings Accounts Is NOW
"Savings Accounts Must Be Sought Aggressively Through a Properly
Designed Advertising Program, Conducted on a Regular and
Systematic Basis"

S

AVINGS banking, like commercial
banking, has its roots in antiquity,
although its development did not
actually begin until long after commer­
cial banking was estabilshed. Just a
little over four hundred years ago a
Frenchman, Hugues Delestre, first sug­
gested the idea of a savings bank in
some of his writings. It was not until
1765, however, that such an institution
was started in Brunswick, Germany.
Its primary purpose looked toward the
relief of pauperism. Basically, this in­
stitution was no different from the sav­
ings bank of today, in that it was de­
signed to encourage wage earners to
pool their savings for the purpose of
accumulating a fund to become avail­
able in less prosperous days.
While to France goes the honor of
conceiving the idea, Germany must
have the credit for putting it into oper­
ation. It was England, however, that
instituted the first statutory control of
thrift banks, and because of this fact
we must conclude that the first modern
savings bank was an English institu­
tion. Because of the nature of the
early operation of these banks, the
clergy and philanthropists in other
parts of Europe became tremendously
interested in the movement.
A Scotch clergyman who established
the Parish Bank in Ruthwell, Scotland,
in 1810, advanced certain reasons to
defend his project, and these reasons
are just as applicable today as they
were then. He said: “ Planned ex­
penditures will result in saving. A
savings institution, after it is once
started, should be self-sufficing. The
bank must have a definite organization.
Thriftlessness should be penalized, and
industry encouraged.” He believed
that even the poorest family made
needless and useless expenditures, and
that such expenditures actually consti­
tuted a potential savings fund. He
was, as it were, the father of budgeting.
The success of the Ruthwell Bank soon
led to the organization of the Edin­
burgh Savings Bank—the first to adopt
the passbook idea, which has remained
essentially the same to this day.
Northwestern Banker


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Federal Reserve Bank of St. Louis

September 19Ü

By Leslie K. Curry
Vice President
M ercanti le -C om m erce Bank
and Trust Company
St. Louis

L E S L IE K. CURRY
“ W e Must Encourage Thrift Now”

Savings in the United States
Savings banking in the United States
had its early development in New
York, Philadelphia, Boston and Balti­
more, largely through the formation of
benevolent and charitable societies,
which, as in Europe, soon led to the
organization of savings institutions in
which wage earners could pool their
savings. On December 2, 1816, the first
savings bank deposit in the United
States was made in Philadelphia, in the
Philadelphia Savings Fund Society. A
short time later the first chartered
savings bank was organized in Boston
as the Provident Institution for Sav­
ings, which is still in existence and
now has $123,000,000 in deposits.
In the intervening years, savings
banking has grown through the devel­
opment of stock and mutual savings

banks and the establishment of savings
departments in m o s t commercial
banks. Total savings deposits in all
of the banks in the United States on
June 30, 1943, had grown and multi­
plied to over 32 billion dollars.
It is but a short step from the ac­
cumulation of savings to a desire to
invest the accumulated funds in some
sort of income-producing property. Be­
cause of the limited opportunities of
the average citizen to know how to
invest money properly, the savings
bank has provided a useful and valu­
able intermediary service. A savings
deposit has come to be looked upon
and, in fact is, the simplest, most read­
ily available type of investment yet
devised.
There is no way of determining the
millions of dollars, or even billions,
that have been saved to the small in­
vestor through savings banks. First
of all, it must be recognized that a
bank has better knowledge of invest­
ment principles, which has played a
large part in reducing individual loss
ratios. Beyond that, savings too small
for direct investment by the individual
saver may, when deposited in a savings
bank, be pooled with the savings of
others, to the end that greater invest­
ment diversifications as to risk and
type may be obtained, which in itself
connotes greater marketability. Then,
too, it should be kept in mind that sav­
ings deposits may be withdrawn piece­
meal, whereas investments must be
sold outright. Moreover, small indi­
vidual investments lose a part of their
earning power as the result of neces­
sary commission charges on purchases
and sales, as well as from the cost of
safeguarding the securities.

Trained to Save
The American banking system has
played a large part in training lowerand middle-income groups to establish
regular and systematic savings plans
for specific purposes. As a result, sav­
ing has now become an inherent part
of the education of practically every
(Turn to page 74, please)

17

Prom pt Transit Service


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Federal Reserve Bank of St. Louis

THE
OM AHA
N A T IO N A L
BANK
M «nb< r

F* d * r « 1

Ix u ir t n c i

Corporati*»

Northwestern Banker September 194b

18

N ew s

a n d

V ie w s

O F THE B A N K I N G W O R L D
By Clifford DePuy
r ic a .

Jo h n s o n , president of the

E United States Chamber of Com­
merce, in referring to our winning the
war and preparing for peace, says,
“We must steel our nerves and fortify
our determination to work and work
together, with no slacking or fumbling
while we have the ball on the 10-yard
line in this war.
“Today, we face a double challenge,
to speed victory and to be prepared for
peace. We are strong enough and wise
enough to meet that challenge.”
Dorcas Campbell, assistant secretary

of the East River Savings Bank, 26
Cortlandt Street, New York City, and
one of the most beautiful and charm­
ing young ladies to ever be a member
of the Financial Advertisers Associa­
tion, has just written a book, “Careers
for Women in Banking and Finance,”

which is published by E. C. Dutton and
Company, Inc., and it is a book which
every young lady, to say nothing of
every young man, in banking should
read.
The increased number of women in
banking since Pearl Harbor makes this
book especially interesting at this time.
At the time we entered the war there
were about 65,000 women in the banks
of the United States and now it is
estimated that there are between
125,000 and 135,000 women helping to
run the financial institutions of the
country.
Today about 27 per cent of the ap­
proximate 49 million women over 14
years of age are wage earners.
Congratulations, Dorcas, on your
very interesting book.
The Northwestern Banker has re­

ceived in poster form the following
material which we believe should help
to encourage a greater appreciation of
the American way among all of us.
The power to choose the work we do,
To grow and have the larger view,
To know and feel that we are free,
To stand erect, not borv the knee.
To be no chattel of the state,
To be the master of our fate,
To dare, to risk, to rise, to win,
To make our own career begin.
To serve the world in our own way,
To gain in wisdom, day by day.
With hope and zest to climb, to rise;
That is PRIVATE ENTERPRISE.

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Dr. Edwin G. Nourse, vice president
of the Brookings Institution, Washing­
ton, D. C., believes that, “We are bound
to have some rough going in the con­
version period—let-downs and inter­
ruptions—but basic conditions are so
favorable that this period will be short.
“ I am much more concerned about
the possibility that we may not follow
a very wise or farsighted course in
the period after the conversion, when
it looks as though things are easy.
“There is danger of riding along on
a boom of high prices, whereas, with
our great production capacity, we
should have a period of moderate or
lower prices as a means of stabiliza­
tion.”
Leonard P. Ayres, vice president of

the Cleveland Trust Company, tells us
that the total labor force, including
both civilian and military workers and
fighters, now numbers 66.6 million
persons, which is almost half of our
entire population. The number direct­
ly engaged in war work has increased
18.3 million.
“Postwar Monetary Standards” is a
symposium which discusses the Amer­
ican policy towards monetary recon­
struction. The inquiry, it is hoped, will
be helpful to the government to mem­
bers of Congress and to the public at
large.
Eleven different banking and mone­
tary authorities have contributed to
this interesting volume.
In the chapter, “American Banking
and Currency Stabilization” , by E. E.
Agger, commissioner of banking and
insurance of New Jersey, he says,
“Our underlying assumption is that
we wish to maintain the system of free
enterprise, and, correlatively, our dual
system of banking, i. e., state chartered
as well as the national banks. Con­
trasted with a system of free enter­
prise is totalitarianism in both its
communistic and fascistic forms. Bank­
ing as an economic technique is indis­
pensable to both forms, but, under free
enterprise, coordination of banking
with the rest of the economy is effected
by the discipline of a free market.
Under totalitarianism, banking, as well
as all other economic activities, is
brought under rigid control, and is
forced to conform to some preconceived plan.”

Representative Clare Luce, who has
been renominated by the Fourth Dis­
trict Republican convention of Con­
necticut for another term in Congress,
calls the present administration offi­
cials, “ramsqaddled do-gooding New
Deal bureaucrats—and there is not a
single thoughtful man in Washington
today who does not tremble for the
economic welfare of the country if the
present administration stays in pow­
er.”
Joseph P. Kennedy, former United
State ambassador to Great Britain, in
a recent speech, said, “ I know all the
spurious generalities and the loose talk
that is indulged in about debt. ‘The
size of the national debt,’ one of these
planners recently said, ‘is of no con­
sequence. After all, we just owe it to
ourselves.’ I gave up trying to under­
stand that one, except that I know per­
fectly well that when Government
Bonds are outstanding in anyone’s
hands, American citizens or foreigners,
a debt and an interest charge has been
created which must be met. You, as a

taxpayer, must furnish the means with
which your government meets its ob­
ligations. The transfer of funds creates
less friction when distributed at home
instead of abroad but in no other way
does the fact that the national debt is
owed by American citizens reduce the
burden.”
Charles B. Henderson, chairman of
the board of the Reconstruction Fi­
nance Corporation, has just issued a
new booklet on “Bank Participation
Plan” , which has to do with “war
production, contract termination, re­
conversion and other business loans”.

Mr. Henderson says, “This Corpora­
tion is not in competition with private
banks or other lending institutions.
“We have from the beginning pre­
served the right of our state «and
national banks to make these loans
in the first instance. We have par­
ticipated with them and together have
made thousands of loans which other­
wise would not have been consum­
mated. The transition period will re­
quire continued co-operation if we are
to accept the responsibilities imposed
on us.”
Charles B. E ii Ioav, president of the
National City Bank of Evansville, In­
diana, has been endorsed by the In­
diana Bankers Association for the vice
presidency of the American Bankers
Association when they meet in Chi­
cago, September 24-27.
Mr. Enlow graduated from the Ohio
State University with the degree of
Bachelor of Science in Chemistry and
for a time was a chemist with the Car(Turn to page 40, please)

Northwestern Banker

September

otral national

BANK
MIST COMPANY
tSI»8UiHE0 1895

I O W A 'S Favorite
Correspondent


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Federal Reserve Bank of St. Louis

Bank

'Weic&me

If there is anything any of our officers can
do to add to your comfort and convenience
while attending the 58th Annual Convention
of the Iowa Bankers Association-Des Moines
Sept. 3 -4th - please feel free to call upon them.

CENTRAL NATIONAL
BANK and TRUST COMPANY
DES MOINES
M em ber Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

W. G. KANE

C. M. LARSEN

Assistant Cashier

Assistant Cashier


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Federal Reserve Bank of St. Louis

•

•

•

• •

•

•

•

•

•

Composite STATEM ENT OF CONDITION
as of June 30, 1944
Of the Iowa Banks— served by the Central National Bank and Trust Company, Des Moines


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Federal Reserve Bank of St. Louis

23

A. B. A.
War Service
Meeting
Chicago
September 25-26-27

The Program
A. L. M . W IG G IN S
President, American Bankers Association

EVELOPMENT of the home econ­
omy in the postwar era is the
theme whose thread runs through
the program being prepared for the
second War Service Meeting of the
American Bankers Association, sched­
uled for Chicago, September 25th-27th,
it is indicated by details of the pro­
gram. The meeting, reduced from the
normal four-day convention, is to be a
streamlined affair crowded with busi­
ness sessions for two and a half days.

D

It will open on Monday morning and
close at noon on Wednesday. Instead
of the customary three general ses­
sions there will be only two, one on
Tuesday morning and one on Wednes­
day morning, the remainder of the
time being occupied by meetings of
various divisions, sections, etc.
The opening day, Monday, Septem­
ber 25th, will be given over to the
meetings of the five divisions of the
association. The savings division and
the state bank division, and the state
association section will meet Monday
morning, and the national bank divi­
sion and trust division will meet Mon­
day afternoon.

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Federal Reserve Bank of St. Louis

As stated, the general sessions will
occupy Tuesday morning and Wednes­
day morning. Tuesday afternoon will
be given over to a meeting of country
bankers, consisting of two round tables
and an address by Chester C. Davis,
president, Federal Reserve Bank of St.
Louis. General sessions speakers will
be A. L. M. Wiggins, president of the
association; William M. Jeffers, presi­
dent of the Union Pacific Railroad and
former Wartime Rubber Administra­
tor; Senator William C. Freeman, sec­
retary of banking of Pennsylvania, and
Dr. Bruce R. Baxter, resident bishop of
the Methodist Church, Portland, Ore­
gon.
The War Service Meeting will be pre­
ceded by a social gathering on Sunday
afternoon, September 24th, in the form
of a tea tendered by the Chicago Clear­
inghouse Association. Most of Sunday
will be given over to meetings of com­
missions, committees, and councils.
The retiring executive council will
meet Sunday night, and the new coun­
cil will have its organization meeting
at lunch on Wednesday. The program
subject to additions is as follows:

Monday Morning
September 25th
State Bank Division
Address of the president of division,
Claude F. Pack, president, Home State
Bank, Kansas City, Kansas.
“Postwar Views of a County Seat
Banker”—E. D. Reese, president, The
Park National Bank, Newark, Ohio.
Maple T. Harl, State Bank Commis­
sioner, Denver, Colorado.

Savings Division
Address by president of division,
Fred F. Lawrence, treasurer, Maine
Savings Bank, Portland, Maine.
“ Spending or Saving Our Way to
Postwar Prosperity” — Russell Weisman, financial editor, Cleveland Plain
Dealer, Cleveland, Ohio.
“ Som e Observations on Savings
Banking in England”—W. L. Heming­
way, immediate past president of the
A.B.A., president, Mercantile Com­
merce Bank and Trust Company, St.
Louis.

State Association Section
Meeting of secretaries and other offi­
cers of state bankers associations.
(Turn to page 34, please)
Northwestern Banker September i9bb

24

Let Your Bank Statement
Be Your

Silent Salesman

-------- A Northwestern Banker Survey
statement pattern. A few stated they
hadn’t changed their form of statement
for 30 or 40 years. On the other hand,
it was interesting to note that some
remarked that they had begun chang­
ing the pattern of their statement with­
in the past year and even several said
within the past month or so. A num­
ber replied that they followed the form
as laid out by their respective super­
vising departments and suggested that
we take it up with them. Those who
gave that answer seemingly hadn’t
stopped to think that in our question­
naire we were referring to their con­
(1 )
H o w r e cen t has it b een since densed published statement for the
y o u ch a n g ed th e p a ttern o f y o u r p u b ­ reading public and not to the detailed
official published statement required to
lish ed sta tem en t?
The answers to this first question as be filed with the supervising depart­
outlined in Chart No. One, confirms ments. The Iowa supervising depart­
that by far the majority of banks have ment has already begun to revamp its
given little or no attention to chang­ published call statement.
ing the pattern of their published bank
(2 ) D oes y o u r board o f d irectors
statements. For example, to this ques­ e v er discuss th e style or p a ttern fo r
tion we have such replies as:
y o u r p u b lish ed sta tem en t o f co n d i­
Thirteen per cent frankly admitted tio n ? ( A ) If so, h ow o fte n ?
that they had never changed their
About 90 per cent of the replies indi­
cated (Chart Two) that at no time had
the matter of preparing a condensed
H oiv r e cen t has it b een sin ce y o u ch a n ged th e p a ttern
published statement pattern ever been
o f y o u r p u b lish ed B an k S ta tem en t?
discussed by the board of directors.

OLLOWING an editorial on bank
statements appearing in the June,
1944, issue of the N o r t h w e s t e r n
B a n k e r , a series of twelve questions
relating to published bank statements
was sent to banks in the states of Min­
nesota, Nebraska, North and South
Dakota and Iowa. As this September
issue goes to press we have had sev­
eral hundred replies, and many of our
readers have said they are looking for­
ward to a summary of these answers.
Please note that all reference to
bank statements in this survey means
the one going to the reading public
and not to the detailed forms required
by the national and state banking au­
thorities.
An analysis of the replies indicates
that the questionnaire has awakened
considerable interest in showing the
importance of setting up published
bank statements with more thought as
to how they could create the best pos­
sible impression on customers and
non-customers of the bank. The re­
plies coming to us were unsigned and

F

C H A R T NO. ON E

—

otherwise unidentified, so that the
comments given were frank and sin­
cere-som e said they thought the pub­
lished statement to customers could
just as well be eliminated — many
others felt that the bank statement
could be an excellent “silent salesman”
for the bank, but its possibilities as
such has been too long ignored, and
apparently these commentators are
going to pep up their bank statement
accordingly.
An analysis of the twelve questions
follows, together w i t h comments
quoted from the replies:

Recently

29%

(3 ) D o es y o u r boa rd o f d irectors
just lea v e it to som e on e officer or
staff m em b er o f th e bank to rou tin ely
su p p ly th e n ew figures to th e same
fo r m e r p a ttern or set-up as each call
is m ade b y th e bank su p ervisin g au­
th o r itie s ?

According to Chart Three it would
appear that 96 per cent of the banks
have left the preparation of the con­
densed published statement to some
one officer or staff member of the bank.
It was apparent that such officer or
staff member treated the preparation
of the statement merely as a routine
matter following the same form or pat­
tern throughout the many years, the
only change being to insert the new
figures at the time of the call. How­
ever, it was exceedingly interesting to
note how some of these individual
officers or staff members put in new
ideas to revitalize their statements.
Northwestern Banker September L944


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Federal Reserve Bank of St. Louis

25

BANK STATEMENT S U R V E Y ..............
We comment on this more in the an­
swers to Question No. 12 below.

first because they wanted to make their
readers “bank conscious” so that when­
(4 )
In y o u r p u b lish ed sta tem en t, ever they wanted a loan the first place
they would think of obtaining it would
w hat d o y o u list first, reso u rces or
be from their local bank.
lia b ilities? ( A ) W h y ? ( B ) H o w lon g

h ave you d o n e s o ?

The answers to this question again
bore out how little or no original at­
tention has been paid by the vast ma­
jority of the replying banks to the
preparation of their condensed pub­
lished statement outside of handling it
in a routine fashion. Answers as to
“why” resources or liabilities were
listed first or vice versa brought such
comments as the following:
“ It just seemed to be the customary
thing to do.”
“We just listed ‘Liabilities’ first out
of force of habit.”
“ It just became a habit to list ‘Re­
sources’ first.”
“ It just became established with our
bank to list ‘Liabilities’ first.”
C H A R T N O . T W O — D o es y o u r
boa rd o f d irecto rs e v e r discuss th e
style or p a ttern o f y o u r p u b lish ed
S ta tem en t o f C o n d itio n ?
No. 90%

(6 ) In listing th e item s that go to
m a ke up “ lia b ilities” , w hat item do
y o u list first? ( A ) W h y ? ( B ) H ow
lon g have y o u d o n e s o ?

Again we would say that by far the
majority of the banks answered this
question along the same line as the
answers to No. 4. Although a number
stated they well remembered that dur­
ing the stress of some years back they
did visualize that it was important in
order to show “paying ability” and
“strength” and therefore they listed
“capital structure” first under “liabili­
ties” and “cash and due from banks”
and “bonds” as first under “resources”
or “ assets.”
(7 ) In y o u r p u b lish ed statem en t,
d o you in clu d e an item rela tin g to
“ D ivid en d s P a y a b le” ? ( A ) I f so, w h y
do y o u ?

given to that term, they were now con­
vinced that it was bad psychology to
use such a term. The following are
some of the answers which speak for
themselves both pro and con on the
use of the term:
“ Using such a term as ‘reserve for
contingencies’ gives the impression
that we are expecting contingencies.”
“We call this reserve ‘unallocated
reserves’ and we have learned that the
public believes this reserve to have
been paid in by the stockholders. We
C H A R T NO. TH REE

—

D oes y ou r

boa rd o f d irecto rs ju st lea ve it to
som e o n e officer or staff m em b er o f
th e batik to su p p ly th e n ew figures
to th e sam e fo r m e r p a ttern or set-up
as each su cceed in g bank call is issu ed ?
Yes, 96%

By far the majority of the banks
gave “no” to this question for no spe­
cial reason other than perhaps it had
been customary not to do so.
(8 ) D o y o u ca rry y o u r “ B u ild in g ”
at $1.00 or less? ( A ) I f so, w h y ?

A goodly number of the replying
banks did not respond to this question
but of those that did we should say
the majority expressed themselves that
to carry their building at $1.00 in the
statement is not indicating the “true
value” of the property or the true
“distribution of the capital structure.”
(9 ) Do y o u ca rry y o u r “ F u rn itu re
and F ix tu res” at $1.00 or less?
(A )
If so, w h y ?

The trend of the answers to Ques­
tion No. 8 was seemingly approximate­
ly the same as the answers to this
Question No. 9.
(1 0 ) In y o u r sta tem en t d o you say
“ R eserv e fo r C o n tin g en cies” ? ( A ) I f
so, w hat is y o u r im pression that th e
(5 )
In listing th e item s that g o to w ord “ C on tin g en cies ” m eans to th e
m ake u p ""resources” , w h at item do
read in g p u b lic w h en th e y read y o u r
y o u list first? ( A ) W h y ? ( B ) H o w
p u b lish ed sta tem en t?
lon g have you d on e s o ?
This question seemed to be a “hot

“We follow out the form of the
Banking Department.”

The answers to this question were
along the same line as the answers to
No. 4 above. The majority of the
banks reported that they listed, or did
not list, “resources” first purely for the
reason that it had become a habit, or
that it had been customary to list this
or that item first. There were some
that made it clear they listed first in
their “resources” the item that they
wanted to sell most to their reading
public; for example, they listed “ loans”

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Federal Reserve Bank of St. Louis

potato” ; the majority of the replying
banks preferred to leave it alone and
say nothing. It was apparent, how­
ever, that they had given the phrase
a great deal of thought. While it
seemed from reading the replies that
there has been a growing usage among
many banks of the country of the term
“reserve for contingencies,” the banks
in their answers were quick to state
that upon a second thought as to the
different interpretations that could be

set up this account to transfer some
of the funds from ‘undivided profits’
so that this a/c would not appear so
large.”
“To me it looks as if the bank has
some asset that has to be counter-bal­
anced. Some years ago many of the
larger banks, and perhaps smaller ones,
too, confused the public by transferr­
ing capital funds to contingencies, and
immediately made charge-offs to this
account, so to me it has a bad smell.”
“ No good—might just as well all be
in surplus account.”
“ ‘Contingencies’ might mislead the
public to think something pending
might have to be paid out of this fund.”
“ ‘Reserve for contingencies’ would
appear that the bank is preparing for
future losses.”
Another bank replies to the inquiry
as to what the term “reserve for con­
tingencies” means to the reading pub­
lic: “ Not a damn thing—blanks made
up by the banking department.”
Northwestern Banker September 1944

26

BANK STATEMENT SURVEY . .
“The average person if they read the
statement would consider it to mean
some unforeseen loss that might occur
in the future; I asked three customers
this question this morning and they
were all of the same accord or their
answers all meant the same. However,
I feel a lot of people only look at the
total when reading a bank statement.”
“We use the term ‘reserve for con­
tingencies’ because an examiner told
us that ‘reserve for contingencies’ was
the proper form for any reserve, unless

it was for a specific purpose; for ex­
ample, taxes, etc.”

S om e A m erica n business e x e c u ­

(1 1 )
In y o u r p u b lish ed sta tem en t
d o y o u sa y: ( A ) C apital (p a id i n ) :
( B ) C apital (e a r n e d ): (C ) Surplus
(e a r n e d ): (D ) U. P. (e a r n e d ): (E )
If so, w h y ?

tives, aw are that m illions o f p e o p le

The replies indicated that more than
99 per cent of the replying banks do
not use such terms in their condensed
published statement as “capital, paid
in,” “capital, earned,” “s u r p 1u s,
earned,” etc.

a m p le, m ost p e o p le w h o lo o k at a
c o r p o r a te sta tem en t o f con d ition

d o n ’ t knoiv h ow capitalism w orks,
are m aking p ra ctica l im p rovem en ts
in th eir p u b lic relation s.

F or e x ­

th in k th e “ surplu s” is m erely un­
d istrib u ted p ro fit w hich soon er or
later w ill reach th e p o c k e ts o f sto ck ­
h old ers.

E x e c u tiv e s

of

G en era l

M ills, In c., d ecid ed to elim in a te th e
a m bigu ou s label.

A s a result, th e

ivord “ su rp lu s” d oes n ot a p p ea r on
th e latest G en era l M ills statem en t.
In its p la ce is this designation : “ F or
ex p a n sion , w o rk ers’ ben efits, new
tools and n ew stocks o f g ood s.”

While in Chicago,
Visit The First
A hearty welcome is assured A B A
members at The First*
W e look forward with pleasure to the
time of the convention, when we shall
renew those personal contacts that
we have enjoyed for so many years*
Edward E. Brown, P re sid en t
Bentley G . M cC lou d , V ice-P resid en t

James B. Forgan, V ice-P resid en t

Harold V . A m berg, V ice-P re sid en t

Irvin L . Porter, V ice-P resident

R oy C . O sgood , V ice-P resid en t

Banks

and

Bankers D

ivisio n

John J. Anton,

Vice-President

T hom as J. Nugent,

Vice-President

Harold W . Lewis,

Assistant Vice-President

Melvin H . T hies,

Assistant Vice-President

Verne L . Bartling,

Assistant Vice-President

Leland L . Hobbs,

Assistant Cashier

Edward D ecker,

Assistant Cashier

The First National Bank—J
o f Chicago
Building W ith Chicago and the Nation Since 1863

Northwestern Banker
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Federal Reserve Bank of St. Louis

September 19bb

(1 2 ) In y o u r o p in io n , w hat are
so m e o f th e fu n da m enta ls to folloiv
in p rep a rin g a bank sta tem en t o f c o n ­
d ition fo r p u b lica tion so as to crea te
th e best p o ssib le im p ression w ith the
rea d er p u b lic ?

The answers to this question evoked
a long list of interesting comments
and we regret we do not have space
here to quote all of them. But here are
a few of the replies:
“ Adopt a form for your condensed
published statement and then hold to
it. However, we like to vary the state­
ment and use a different colored paper
at times and change the style of type.”
“As long as conditions are normal
the public pays little or no attention to
a published bank statement.”
“Reserves, in a published bank state­
ment reflects good banking and more
of it should be set up in the statement.”
“ I, too, think that most of our bank
statements are about as near a puzzle
as anything can be.”
“ Show deposits in one item; do not
break them down.”
“ Fifty per cent of the people never
read the bank statement anyway, so
why change it?”
“We do not believe that people read
bank statements anyway, and there­
fore some real thought should be given
to its preparation to get more of them
to read them and understand them.”
“ The bank statement should be con­
densed and use the fewest figures as
possible so the people will remember
the statement and not become confused
with too much detail.”
“ Some banks make a great mistake
by not using large enough type, to
(Turn to page 55, please)

U

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MERCANTILE


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Federal Reserve Bank of St. Louis

B ank, a n d
ST. L O U IS 1

1801

COMMERCE
Trust Company
M IS S O U R I

Me Diber Federai De posi! I u su ranee Corporal ioti

Northwestern Banker September Í944

28

Chicago Bankers W elcom e A B A Delegates
They Are Looking Forward to Meeting Their Many Friends at the W ar
Service Meeting of the American Bankers Association
HICAGO banks and bankers cor­
dially invite their correspond­
ents and other banker friends to
attend the War Service Meeting of the
American Bankers Association, which
will be held there September 24th to
the 27th.
The last time Chicago was host to
the American Bankers Association con-

C

do everything possible, in keeping
with the times, to make the stay of
the delegates pleasant. The following
is a complete list of Chicago bankers
and their wives making up the per­
sonnel of the several committees:

Halls and Meeting Places
Charles M. Nelson, chairman; Leslie
McMahon, vice chairman; Richard A.
Aishton, Elton W. Follett, George A.
Malcolm, Leigh H. Gignilliat, Jr., and
Leroy F. Winterhalter.

General Committee

Hotels Committee

Howard W. Fenton, chairman; Ed­
ward E. Brown, Philip R. Clarke, Wal­
ter J. Cummings, William C. Cum­
mings, Charles G. Dawes, Frank R.
Elliott, James R. Leavell, Bentley G.
McCloud, David H. Reimers, Solomon
A. Smith, Lawrence F. Stern and Clif­
ford S. Young.

Frank R. Curda, chairman; Harold
B. Bray, vice chairman; James H.

Executive Committee
James R. Leavell, chairman; John J.
Anton, vice chairman; John S. Broeksmit, Fred A. Cuscaden, William H.
Miller and John C. Wright.

Arrangements Committee
C. Edgar Johnson, chairman; M. A.
Georgen, vice chairman; Charles C.
Looney, John H. Klug, Carsten E. Ronning and Arlen J. Wilson.

Entertainment Committee

H O W A R D w. F E N T O N
Chairman of Board, Harris Trust & Savings
Bank, General Chairman

vention was in 1941. At that time war
clouds were covering Europe, but the
United States was not directly affected.
This year this country is in the war,
and as this is written is blasting its
way toward Berlin.
In 1941 it was possible for the Chi­
cago Clearing House Association to
provide entertainment for their bank­
er guests in keeping with peace times.
Conditions this year have changed—
we are at war—and convention enter­
tainment is practically eliminated so
that all time can be devoted to discus­
sion of the many problems confront­
ing the banking business in wartime.
Many bankers have sons and daugh­
ters in the service, and their one
thought is to give all possible aid to
the war effort so that the sons and
daughters of everyone can return to
their homes soon.
Chicago bankers welcome the oppor­
tunity to be hosts at this 1944 War
Service Meeting of the American Bank­
ers Association, and are planning to
Northwestern Banker

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

September

William H. Miller, chairman; John
H. Grier, vice chairman: Charles A.
Carey, Lawrence A. Kempf, Charles
C. Kuning and John W. Nichols.

Finance Committee
Walter B. Allen, chairman; Howard
M. Sims, vice chairman; Laurence B.
Robbins, Richard E. Pritchard, Emil
A. Stake and Adolph R. Floreen.

JAM ES R. L E A V E L L
President, Continental Illinois National Bank
Chairman, Executive Committee

Clarke, Bernard J. Maiworm, Melvin
H. Thies and Charles B. Weaver.

Information and Publicity
Kent C. Childs, chairman; Harry C.
Hausman, vice chairman; A. S. Bagnail, J. Mills Easton, Robert Lindquist,
Louis H. Northrop, Chester L. Price
and Lynn Lloyd.

Ladies Committee

Hotel Stevens— headquarters for the
Am erican Bankers Association w ar­
time conference in Chicago.

Mrs. Edward E. Brown, chairman;
Mrs. Walter B. Allen, Mrs. Harold V.
Amberg, Mrs. John Anton, Mrs. Harry
A. Brinkman, Mrs. John S. Broeksmit,
Mrs. Philip R. Clarke, Mrs. Walter J.
Cummings, Mrs. Frank R. Curda, Mrs.
Fred A. Cuscaden, Mrs. Charles G.
Dawes, Mrs. Frank R. Elliott, Mrs.
Howard W. Fenton, Mrs. C. Edgar
Johnson, Mrs. James R. Leavell, Mrs.
Bentley G. McCloud, Mrs. William H.
Miller, Mrs. Charles M. Nelson, Mrs.
Thomas J. Nugent, Mrs. David H.
Reimers, Mrs. Solomon A. Smith, Mrs.
Lawrence F. Stern, Mrs. John C.
Wright and Mrs. Clifford S. Young.
(Turn to page 30, please)

29

A no th er lea d in g b a n k using H am m erm ill S a fe ty
S YM B O LIC OF TH E P O S ITIO N The Cleve­

Checks of this influential institution are printed

land Trust Company occupies in the city’s life,

on Hammermill Safety paper. The check shown

its main office group of buildings stands in the

below is on Straightline Hammermill Safety, with

heart of Cleveland. Its 45 branch banks are con­

the seal of The Cleveland Trust Company an
integral part of the surface design.

veniently dotted throughout the city.

MANUFACTURED

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

BY H A M M E R M I L L

PAPER

COMPANY,

ERIE

FOUNDED

1898

Northwestern Banker September

30
Reception Committee

Transportation Committee

John C. Wright, chairman; Frank C.
Rathje, vice chairman; Thomas H. Beacom, Jr.; Lester T. Boe, George R.
Boyles, Reuben G. Danielson, Chester
R. Davis, K. K. DuVall, Norman N.
Feltes, Mark W. Lowell, Spencer L.
Hart, Arthur T. Leonard, Harold W.
Lewis, J. H. Ottmann, C. Ray Phillips,
Howard P. Preston, Guy E. Reed, Solo­
mon B. Smith and Roy R. Marquardt.

Thomas J. Nugent, chairman; Jos.
F. Govan, vice chairman; William W.
Farrell, L. W. Fischer, Charles G.
Fisher, Harry M. McLeod and Fred M.
Naber.

Registration Committee
Harry A. Brinkman, chairman; Geo.
Slight, vice chairman; Verne L. Bartling, L. Kenneth Billings, James H.
Dillard, Clarence B. Jennett, Ronald
M. Kimball, Alan R. Kidd, Lewis L.
McArthur, Norman B. Shaffer and Wil­
liam G. F. Price.

DEAR EDITOR
(Continued from page 7)
ship was not at all like it is pictured in the
movies.
There was no march down the
streets amidst the waving and cheering of
an emotionally aroused crowd, nor a band
blasting out George M . Cohan’s famous
"O v e r There” .
There were no dramatic
last-minute scenes on the docks by men and
wives, or sweethearts. W e even lacked the
comedian who, in every movie, almost misses
the boat. A s yet no beautiful stowaway has
been found and, contrary to theatrical ideas,
no W A C ’ s are aboard ship. Instead it was

a quiet march to the ship and as we boarded,
a G. I . jazz band was playing ‘ ‘ In The
M ood ” , and other hot tunes. W e received
a welcome cookie and a cup of coffee from
Eed Cross workers before we left. I might
also mention, as an added plug for the Bed
Cross, we each have received a handy kit
from them enclosing this writing paper, a
small book of fiction, razor blades, cigar­
ettes, etc.
" I will refer you to W arren ’s letter when
he went over plus numerous letters pub­
lished in the Herald instead. of describing
the crowded and musty conditions aboard.
However, there is a small hole which has
been spared of bunks and supplies, and is
used for recreational purposes by means of
many shifts. I have had my turn at church
services and one movie in this small space.
" I have read several books including
‘ ‘ Scaramouchi ’ ’ by Sabatini, and ‘ ‘ The

(Turn to page 32, please)

Chicago
Committee Chairmen
for the
A . B . A . Convention
C. ED G AR JO H N SO N
Vice President, First National Bank
Chairman Arrangements

W IL L IA M H. M IL L E R
Vice President, City National Bank
Chairman Entertainment

Northwestern Banker


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

September t9'ib

CH AR LES M . N EL SO N
Vice Pres., Northern Trust Co.
Chairman Halls and Meeting Places

W A L T E R B. A L L E N
Vice Pres., Continental Illinois Nat’l.
Chairman Finance

F R A N K R. CURDA
Cashier, City National Bank
Chairman Hotels

31

ield W a re h o u se L oan s a re
on e of the_ sa fe st m ean s
b y w h ich y o u c a n in c re a se
y o u r lo a n volu m e. In a d d i­
tion to the u se of s a la b le
c o m m o d it ie s a s c o l l a t e r a l ,
y o u h a v e three s e p a ra te an d
in d ep en d en t g u a r a n te e s of
protection.

F

o other lo a n in g proced u re

N

that w e k n o w of g iv e s

such

p o sitive

protection

to

the b an k er. H ere is a tested
an d

p roven

m ethod

of in­

cre a sin g yo u r lo a n volu m e.

Every field warehouse operation is insured by the Hart­
ford Accident and Indemnity Company of Hartford, Con­
necticut, under our warehousemen's liability policy.
St. Louis Terminal Warehouse Company receipts have been
used as collateral for many millions of dollars in field warehouse
loans, yet not one lending agent, our bonding and insurance
companies, nor ourselves has ever lost a cent.

W e 'll

be

p le a s e d

to send

y o u com plete d e ta ils on the
m an y other a d v a n ta g e s to
both the b a n k e r an d the b or­
row er.

W rite

us

to d a y — a

p e n n y p o sta l w ill do.

Protection of the Bonding Agent. In addition to the care­
ful selection and training of employees at St. Louis
Terminal Warehouse Company, every employee is un­
der a minimum $100,000 bond written by the Fidelity and
Deposit Company of Baltimore, Maryland.

The credit of the borrower. As in all normal lending
procedures, the reputation and credit record of the bor­
rower is thoroughly investigated and passed on before
a loan is made. His reputation as a good citizen and his ability
to repay the loan is your first guarantee.

51Mû ÏÏBHIIM I HHII5CCl.

MEMPHIS

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Federal Reserve Bank of St. Louis

G E N E R A L O F F IC E S - S T . LOUIS MO*

Northwestern Banker September 1944-

32
(Continued from page 30)
Great Impersonator” . ‘ ‘ Searamouchi” is
a historical novel about the French Revo­
lution and “ The Great Impersonator” per­
tains to espionage work prior to W orld
W ar I.

‘ ‘ Over the sh ip ’s loudspeaker system, we
hear a little popular music, classical music,
and news, besides various instructions and
orders,
‘ ‘ One day, to our surprise and pleasure,
we had mail call.
I guess the mail had
come in ju st before we left the U. S. A .
Anyway, I had a letter from Bill W eingarten and a copy of D a d ’ s letter to W a r­
ren.
“ I have to admire the spunk of most of
the rookies who were thrown into the outfit
in February, H ad I been sent across dur­
ing my first six months, even though I was
in the A ir Corps at the tim e, I am afraid

I would have been a pretty scared and pretty
homesick young soldier.
‘ ‘ Since writing the last paragraph, I have
eaten chow, showered in salt water, and
finished another book called “ W anton M ally” by Booth Tarkington. When I get
started reading, there is no stopping me. I
am about to begin “ W ork of A r t ” by
Sinclair Lewis.
Next Day— Just finished
the book— very good. Tomorrow I pull K .
P. Guess I ’ll close this letter with its ob­
scure ramblings.
Your loving son,
H ow ard.

"Thanks for the Pictures"
‘ ‘ M y children, Gene and Shirley, have
asked me to thank you very kindly for the
nice pictures you sent them. These are being
pasted very carefully in their scrapbooks,
and are very much appreciated.
“ W e e n jo y v ery m uch r ea d in g th e N o r t h -

w estern B an k er.
I enjoyed my visit with
you at the convention in St. P a u l.”
G eorge A . B e it o , President,

The Northern State Bank,
G o n v ic k , Minnesota, and
Vice President, Minnesota
Bankers Association.

"Knows His Stuff"
“ The August issue of the N o r t h w e s t ­
ern B a n k e r had an article by Andrew
Jamison on ‘ How Good Checks and Sta­
tionery Help Sell Your B a n k .’ Mr. Jami­
son knows his ‘ stu ff.’
A fter watching
Iowa banks grow for 23 years I know
he is 100 per cent right.
“ I ’ve read your N o r t h w e s t e r n B a n k e r
for over 20 years and have gotten many
good selling ideas from it. ’ ’

J. W . K ing, Bankers Sup­
ply Division, The Todd Sales
Company, Inc., 250 Colum­
bia Circle, Waterloo, Iowa.

Chicago
Committee Chairmen
for the
A . B . A . Convention

Vice
K E N T C. CH ILD S
Vice Pres., Continental Illinois Nat’l.
Chairman Information and Publicity .

M RS. E D W A R D E. B R O W N
Chairman Ladies Committee

Northwestern Ranker September 19hi


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

Vice

JOHN C. W R IG H T
Pres, and Cashier, American
Chairman Reception

Nat’l Bk.

H A R R Y A .'B R I N K M A N
Pres., Harris Tr. & Sav.
Chairman Registration

Bk.

T H O M A S J. N U G E N T
Vice President, First National Bank
Chairman Transportation

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

33

N orthw estern B anker

S ep tem ber

34
A

"Would Like 500 Reprints"
“ Please include our name on your mail­
ing list to receive the N o r t h w e s t e r n B a n k ­
er , beginning with the July, 1944, issue.
“ Iu the meantime we should like to
have 500 reprints of the article appearing

on page 33 entitled ‘ How Southern Banks
Meet P C A Competition. ’ ’ ’

A. G. B rown , Deputy Man' ager, American Bankers A s­
sociation, 22 Bast Fortieth
Street, Neiv York City 16.

A . B. A . W A R SER V IC E
M EETIN G
(Continued from page 23)

Monday Afternoon
September 25th
Matiosiai Bank Division

Y

o u r s

f o

r

t h

e

a

s k i n

g . . .

A COLOR S O U N D FILM

Address by president of division, F.
Raymond Peterson, president, First
National Bank, Paterson, New Jersey.
“Bank Credit, the Beginning or the
End of An Era”—W. G. F. Price, vice
president, American National Bank
and Trust Company, Chicago, Illinois.
“ Bank Investments” — Dr. Marcus
Nadler, professor of finance, New York
University, New York City.

A

Trust Division
Address by president of division,
Henry A. Theis, vice president, Guar­
anty Trust Company of New York,
New York.
“ How Trust Institutions Can Serve
Veterans of the Present War”-—Ed­
ward D. Odum, solicitor, U. S. Veterans
Administration, Washington, D. C.

"W A R O N WASTE”

Tuesday Morning
September 26th
First General Session
T ) ankers

-r

Address of president of American
Bankers Association, A. L. M. Wiggins,
president, Bank of Hartsville, Hartsville, South Carolina.
William M. Jeffers, president, Union
Pacific Railroad.

interested in profiting by employe

suggestions are invited to borrow our
color sound film picturing the economies in
time, machines, and materials resulting from
our own Suggestion Box Plan. The film takes

Tuesday Afternoon
September 26th

thirty minutes to show. Seen by your officers
and employes, it may suggest new ways for

Meeting for Country Bankers
2:00 to 4:00

effecting economies in your bank operations.

Round Table: The Farmer and His
Security. Involving a discussion of
land prices, financial reserves, and
means of providing farmers with help­
ful information.
Round Table: Effective Correspond­
ent Bank Relationships Between City
and Country Banks. Subjects covered
include the investment portfolio, oper­
ation and promotion methods, and
credit extension.
Address by Chester C. Davis, presi­
dent, Federal Reserve Bank of St.
Louis, Missouri. Theme: American

THE NORTHERN
TRUST COMPANY
CHICAGO

90

r \

S

c a r b o r o u g h

^ C

’•

o m pan y
¿ S Í lJ iíA íh & ftC

First National Bank Building, Chicago

Northwestern Banker September 19't't

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

Horace A. Smith, Iow a Representative
Des Moines, Iowa

T

-f
r

35

or the third time in a little more than a year, this com pany has been
aw arded the Army and Navy "E" for high efficiency in the production of
war materials.
W e are grateful for this added honor and are proud to thus help speed
the day of Victory when this 74-year old firm may resume its specialized
service in designing and building Banks, Court Houses and Public Buildings.


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

E S T A B LIS M E D

18 7 0

Charles City, Iowa
Ordnance for the Duration — Better Banking Homes for Peace

Northwestern Banker September 1944-

36

Agriculture in the Future and the
Country Banker’s Responsibility to It.

Dr. Bruce R. Baxter, resident bishop
of the Methodist Church, Portland,
Oregon.

Fisher G ets Third "E" Award

For the third time, the Army and
Navy “ E” has been awarded the Fisher
The War Service Meeting will be Company of Charles City, Iowa, pio­
preceded
by a social gathering on Sun­ neer manufacturers of bank fixtures.
Final General Session
Address by Senator William C. Free­ day afternoon, September 24th, in the These awards are for high efficiency in
man, secretary of banking of the Com­ form of a tea tendered by the Chicago the production of war materials.
The company has manufactured field
monwealth of Pennsylvania.
Clearinghouse Association members.
kitchen units, cooks’ tables and racks,
pre-flight student desks and tables, pre­
fabricated refrigerators, cots and beds,
and base hospital units for both the
Army and Navy. It was the first wood­
work manufacturing company to re­
ceive an “E” award and is the only one
of that nature to receive either a sec­
ond or a third award. Its first “E”
was received in April, 1943, its second
Out-of-town banks and bankers will find here
in December, 1943, and its third and
most recent award was last month.
complete banking facilities for prompt and
President B. F. Fisher says that al­
though his company is engaged full
economical handling of accounts in Chicago. We
time in war production, many inquiries
would appreciate the opportunity of serving you.
are received from banks as to future
building plans when peace comes. He
l
reports that from its war work, the
company has gained much invaluable
experience which they can put into
effect after the war.
The Fisher Company will next year
A N D T It 1 S T C O M P A N Y o f C h i c a g o
celebrate its 75th anniversary. In
peace time it specializes in designing,
2 0 8
S O U T H
L A S A L L E
S T R E E T
building and equipping banks, court
{Member Federal Deposit Insurance Corporation)
houses and public buildings.

W ednesday Morning
September 27th

O u t-o f-T o w n

«

T

C i t y N a t io n a l B a n k

Federally Insured
Certificates to yield
PLACE

r

$25,000 (or any part thereof) to yield at the rate of................

.3.40%

In five Associations, with the entire sum Federally Insured.

PLACE

$50,000 (or any part thereof) to yield at the rate of......................................... 3.35%
In ten Associations, with the entire sum Federally Insured.

PLACE $100,000 (or any part thereof) to yield at the rate of......................................... 3.02%
In twenty Associations, the entire sum Federally Insured.
EACH ASSOCIATION OFFERED IS A MEMBER OF FEDERAL SAVINGS & LOAN INSURANCE COR­
PORATION, AN INSTRUMENTALITY OF THE UNITED STATES, AND ALL ACCOUNTS, UP TO $5,000 IN
EACH ASSOCIATION, ARE INSURED FOR SAFETY OF PRINCIPAL.
Each Association Offered Is Federally Supervised, Federally
Regulated and Regularly Examined fay Federal Authorities.
WE WILL PROVIDE AN OFFERING— WITHOUT FEE (AND THERE IS NO BROKERAGE)

ALLISON WAUGH

Financial Development Company
(N O T I N C O R P O R A T E D )

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

Northwestern Banker September 19'tb

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

-r

C h ica g o

3, I l l i n o i s

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

37

In War, As In Peace
Neither war nor peace changes the
b a s ic r e a s o n s w h y h u n d r e d s o f
A m erica n banks co n tin u e to use
Central Hanover as their N ew York
correspondent — constructive advice
on investment p ortfolios, personal
attention to special needs, routine busi­
ness handled with care and dispatch.

CENTRAL
HANOVER
A N D

T R U S T

BANK
C O M P A N Y

NEW YORK

MEMBER FEDERAL DE P O S I T IN S U R A N C E C O R P O R A T I O N

Northwestern Banker September 19!rk

38

Q u e stio n : "Do you think a
bank should make a service
charge for each deposit
s lip ?"
Howard A. Mathews, president, Dan­
ville State Savings Bank, Danville,
Iowa:

“ I think a charge
made on each deposit
each item on a deposit
given consideration in

should not be
slip. However,
slip should be
analyzing the

account when computing the charges.”
C. A. Kingsbury, president, Bank of
Dixon County, Ponca, Nebraska.
“No. A bank should make a monthly
charge for each one of its customers.
This monthly charge should cover the
necessary items for the accommodation
of each depositor. This monthly serv­
ice charge would not include any serv­
ice items outside of the deposit ac­
count.”
F. A. Olson, president, Bank of To­
ronto, Toronto, South Dakota:
“We are firm believers in service ac­
tivity and float charges but do not
think we should charge them for bring­
ing in their money.”
H. E. Wildfang, cashier, State Bank
of Burleigh County, Sterling, North
Dakota:
“A bank should not make charges
for deposits made by its customer in
the- usual course of business as that
has a tendency to discourage the pur­
pose for which a small bank is oper­
ated. I have reference to small banks
located in small towns.”
H. E. Qualheim, president, Crawford
County Trust & Savings Bank, Deni­
son, Iowa:
“ I think not. The banks are in­
clined to go a little too far with their
(Turn to page 40, please)

T he
N ew Y ork T rust
C om pany
Capital Funds Over $50,000,000

Nationally known as “ Wisconsin’s bank for banks,” the
First Wisconsin serves as Milwaukee depositary for more
than 85 per cent of all the banks in this state. This very fact often
enables the First Wisconsin to offer unusually broad and helpful
correspondent service that goes far beyond the limits of mere
routine efficiency.
B A N K S and B A N K E R S D I V I S I O N : G eo rge T . C a m p b e ll...
R ic h a rd J. L a w less, D o n a ld A . H a r p e r

.

.

.

Vice-President

IO O BROADWAY
M A D IS O N A V E N U E
AN D 40TH

STREET

TEN
ROCKEFELLER
PLAZA

Assistant Vice-Presidents

Member of the Federal Deposit Insurance Corporation

Northwestern Banker September Ì944

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Federal Reserve Bank of St. Louis

A BUSINESS-BUILDING PROGRAM
FOR YOUR BANK
1. To in vite b u sin ess from n e w custom ers.

^ A tn n u a

2. To in c re a se p a tro n a g e from old custom ers.
3. To co n tin u a lly rem ind custom ers of y o u r v a rie d
se rv ice s.

1

>
■•Y•■

Evifllrur in Uirrlmif

4. To su g g e st fin a n c ia l p re p a re d n e ss for a fter the
w ar.

Tí

'• V. VYí-r M : J î f -f t î n t p I ; . I t
^ „
V ri,
_ æ
*
* * /. 'c**h that
n a æ e r ïn c e *

5. To u rg e p la n n in g w ith y o u r officers.

- l a * ___ iUfi »1

6. To cre a te a n d m ain tain the fe e lin g that a con ­
n ection w ith yo u r b a n k is a w orth w h ile
a s s e t not o n ly n o w but for y e a r s to com e.

«
7. To p resen t y o u r b a n k a s a frien d ly, hum an,
a p p ro a c h a b le institution w ith w h ic h it is a
p le a s u re to do b u sin ess.

____i* •

I K AH

-Âmnmat Compétitif* Lfj ml 3)él Woinês, Sown, vm

■

V- ■

■

&

T.

;

Advertising Club of Des Moines, Incorporated

This m e s sa g e -a -w e e k se rie s is c a re fu lly p la n n ed
a n d w e ll b a la n c e d . The w o rd in g is sim ple, d i­
rect a n d con vin cin g. Y o u 'll find it a n e ffective
b u sin ess an d g o o d w ill builder.

T h e a b o v e "S W E E P S T A K E S A W A R D " w a s p r e s e n t e d to W E S S L IN G S E R V IC E S b y t h e A d ­
v e r t i s i n g C l u b o f D e s M o i n e s f o r o n e o f t h e ir D ir e c t M a i l P r o g r a m s .
W e s s lin g S e r v ic e s
i n c l u d e tru st p r o g r a m s , n e w s p a p e r a d v e r t i s i n g c o p y a n d d i r e c t - m a i l p r o g a m s f o r c o m m e r ­
c i a l d e p a r t m e n t s a n d g e n e r a l b u s i n e s s p r o m o t i o n fit t e d , h o w e v e r , to t h e i n d i v i d u a l b a n k .

B u sin ess Building P ro g ra m s
B ased on
Ideas That W ork
If one thing can be named as responsible for the success of the business-building com ­
mercial and trust programs W essling Services provides for bank and trust institutions,
that one thing might be summed up in —

NATI ON- WI DE

CONTACTS

In the 22 years that we have been serving the
financial field, we have covered every state in
the Union many times — talking with bankers,
keeping "in tune" with conditions, searching for
ideas, weighing them, sifting them, testing them,
incorporating the best of them into our programs.
The "Northwestern Banker" has said of D. R.
Wessling that "probably he has personal contacts
with as many individual bankers throughout the
country as many man in the United States."

Our customers, of course, are nation-wide, and
we know them on a basis which brings timely
suggestions and helpful comments on their ex­
perience. For example, a recent letter from one
of the largest banks on the Pacific Coast says:
"W e are very pleased with the series and with
your promptness, efficiency and courtesy in ac­
cepting our suggestions . . . W e are looking for­
ward to a substantial increase in our business
from this advertising program."

This has enabled us to interpret and evaluate
what will work and what will not in bank pub­
licity, and how to present the successful ideas
effectively in programs which fit in with any ad­
vertising an institution may already have in effect.

Naturally we are interested in MORE customers
who are looking forward to increased business
not only in the immediate future but also in the
years ahead — and in planning toward that goal.
If you'd like further information on Wessling pro­
grams, won't you please write us — today?

CCÁC

o


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

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40

W H A T DO Y O U TH IN K?
(Continued from page 38)
charges, the whole thing might back­
fire some day. If they make a charge
on the checks deposited and on the
deposit slips, there would in some in­
stances be a duplicate charge. The
public is being subjected to too many
charges; these bank charges may stir
up the same antagonism as have the
federal taxes imposed.”

w. H. Frei, president, Commercial
State Bank, Wagner, South Dakota:
“ I think that this is a ‘far cry’ from
the days that banks advertised ‘$1.00
opens an account.’ ”
“ I think that the charge should be
made only on cost analysis basis.
“This is a hard question to answer


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

because there are various types of de­
posits, and in marking our charges, I
do not think we should lose sight of
the fact that our banks are built on
deposits.”
Charles XV. Thomas, president, Iowa
Savings Bank, Coon Rapids, Iowa:
“ I think that a service charge should
not be made on each deposit slip as it
would discourage the banking habits of
many customers who do not have large
amounts to deposit. This is especially
true of the younger generation who
will be the future customers of the
banking institution. It is up to us to
teach them to deposit their money and
spend it wisely. Take the money and
as it accummulates invest it in govern­
ment bonds to offset the service
charge. If the account is active, charge
on the activity of the account.”

N EW S A N D VIEW S
(Continued from page 18)
negie Steel Company, and began his
banking career in 1904 as cashier of the
Bridgeport, Ohio, National Bank.
Charles C. Bauer, executive director
of the Tax Foundation, 30 Rockefeller
Plaza, New York City 20, has recently
sent out a booklet which his organiza­
tion has published, containing “Facts
and Figures on Government Finance,”

and in one portion of the booklet, it
says, “ In terms of the average person,
his share of the debt loan as of 1944
will be, in round figures, $1,600. The
average taxable wage of all workers
covered by the social security act was
$1,389 in 1943. The average total wage
of all employed persons in 1943 was
about $1,900 to $1,950.
“It is time to stop, look and listen.
We cannot support and increase the
value of our insurance policies, savings
deposits, social security benefits and
other sources of future well-being by
piling up more promises payable to
ourselves.”
E. W . Rossiter, president of the
Bank of Hartington, Nebraska, offered
to the committee revising the constitu­
tion of the Nebraska Bankers Asso­
ciation, a plan which would provide
for the nomination and election of offi­
cers and members of the Nebraska
executive council, and, also, the mem­
bers of the ABA executive council by
mail vote. The committee chose to con­
tinue with the old plan by nominating
committee.
Mr. Rossiter and bankers both in and
outside Nebraska have been giving
this vote-by-mail plan considerable
study over a period of some two years.
It is the considered judgment of this
group that the actual participation by
all bankers 1) in the nomination of
candidates for state association offices
and ABA executive council, with time
for judging the merits of the candi­
dates presented and 2) in insuring
every bank a vote in the final choice
of the men chosen to conduct the af­
fairs of state associations and to rep­
resent the banks on the ABA executive
council, would greatly increase the in­
terest and activity of the individual
banker in all association affairs.
“The greatest danger confronting
our American system of independent
unit banking today,” according to Mr.
Rossiter, “is the indifference and lack
of interest on the part of such a large
percentage of our smaller bankers.
Our studies of this situation lead us
to believe the average banker finds
he has so little to say or do in asso­
ciation work; that everything is so
“cut and dried” when it comes to elec(Turn to page 42, please)

^ ¥ e ¿ o a ie d d e a t i &cfrcta%e t a t i e ¿ a e e f
What floes he think of the Red Cross? He could

That particular night, when he was wounded,

tell us plenty of what that organization has

he knew that he looked death square in the

done for him. At best, it wasn’t any fun for

face— you can feel those things. But the blessed

him over there. No days off, no relaxation— just

blood plasma eventually brought him back. And

going on and on— cold, dirty and damp—

during his convalescence Red Cross workers

tired and hungry. Suddenly, out of nowhere,

made his life more cheerful by writing his let­

up would pop a Red Cross clubmobile bringing

ters for him, providing recreation, and by easing

hot coffee and doughnuts, personal sup­
plies and a touch of home to him and other

the worry over his personal problems. The
+

Red Cross? It’s the symbol of life in the

American troops in the mudholes.


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

midst of death.

This is the seventh of a series of advertisements dedicated to the American Red Cross by
THE

HOME
F IR E

IN S U R A N C E
•

COM PANY,

A U T O M O B IL E

•

NEW

YORK

M AR IN E

42

NEWS AND VIEW S
(Continued from page 40)
tion of officers and conducting the
affairs of bank associations, he is so
little a part of it that he has lost
practically all interest. Then, when
he is called upon for some common
effort in association work, he considers
himself so small and ineffective, he
does not respond.”
Country bankers must make it pos­
sible for them to assert the power of
their numbers and introduce greater
numbers of smaller bankers into as­
sociation offices. Too much excellent
talent and ability ‘out in the sticks’ is

being permitted to go to waste. It is
too seldom called upon and never en­
couraged to come forth. The treatment
of those who do advance new thought
on banking subjects is all too often not
very inviting to the rank and file of
progressive bankers to speak their
mind.”
Mr. Rossiter frankly states that the
move to include this vote-by-mail plan
into the revised constitution of the Ne­
braska association is only an initial
step in a program that looks forward
to the idea catching on with other state
bank associations. He believes that in
due time—“and probably not so far in
the future, either”—the American
Bankers Association may see the wis­

dom of adopting the mail-vote plan
which would permit all banks to cast
their votes without the necessity of
being present at an ABA convention.
“As it works today,” concluded Mr.
Rossiter, “only about 10 to 15 per cent
of all the 15,000 banks have representa­
tives at an ABA convention. The most
of these delegates come from the larger
city banks. The great majority of
county banks are practically disenfran­
chised. It is imperative that a mailvote plan must be adopted if these
10,000 smaller banks are to have any
effective voice in ABA affairs.”
Bt. Norman A. Miller, who was for­

merly

with the N o r t h ­
sent us the follow­
ing letter from France under date of
July 28 when the big drive in Nor­
mandy was on.
Here is what Lt. Miller said: “Boy,

w estern

associated
B anker,

we really got those b------s on the
run now. It seems queer to us here
on the line that they even keep going.
We really are whipping them and
every prisoner says they are glad it’s
over. We have advanced quite rap­
idly the last couple of days and they
sure must be on the run. We pass all
kinds of equipment they abandon and
from all dead horses along ditches, I
guess our barrages really take a toll of
their nags. This place really stinks
and Ave see so many dead heinies it’s
really pitiful. Some evidently were
killed instantly. Save one in kneeling
position with grenade in hand, hole in
top of his head bigger than your fist
and he A\as suffering from a bad case
of rigor mortis.

B

U S I N E S S and industry o f th e C h ic a g o area, w h o le ­
h ea rted ly d e v o te d to th e w o r k o f w in n in g th e w a r, are

also b u ild in g fo r the p ea ce to c o m e . It has b e e n o u r p r iv ­
ile g e , as a b u s in e s s -m in d e d ban k, to assist m any o f these
c o m p a n ie s b o th in m e e tin g the c h a n g in g req u irem en ts o f
w a r and in fa r-sig h ted p la n n in g fo r peace.
M a n y c o r r e sp o n d e n t b a n k s have fo u n d o u r b r o a d e x p e ­
rience t o b e h e lp fu l to th e m in c o n n e c tio n w ith sim ilar
service to cu sto m ers in their o w n areas. P o ssib ly w e can
b e eq u a lly h elpful to y o u .

AMERICAN NATIONAL RANK
AND TRUST COMPANY
O F C H IC A G O
LA S A L L E S T R E E T

AT W A S H IN G T O N

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Member Federal Deposit
OUR

B U S I N E S S

Northwestern Banker September

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

IS

Insurance Corporation

TO

HEL P

B U S I N E S S

“We are sleeping when we ha\re
time in holes Ave dig under the bank
of these hedge roAArs and it’s really a
dirty life.
“From looks on faces of these pris­
oners, they are quite happy to be in
our hands and T belie\Te Avith feAV more
of our treks behind their lines they
Avill fold up.”

Going Fast
First Little Girl (on the subject of
their studies after Sunday School
class): How far have you got?
Second Same: I’m past the original
sin.
First: That all—I’m beyond redemp­
tion!
Heavy Betting
A Yank playing poker with several
English chaps picked up his cards and
found four aces. Someone had just bet
a pound, to which the Yank added: “ I
don’t know how you count your
money, but I’ll just raise ya a ton.”

43

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

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T h e Americas have a program for economic development
and trade in the postwar years.
Business and industrial leaders from all the American nations

W lm ÊÈ ÊÊ m

met in New York earlier this year to formulate recommenda­

ÊÊÊÊÊÊË

tions for future trade activities.
For many years the Chase National Bank has cooperated
with leading banks throughout the Americas in promoting
inter-American trade. These banks have had long business
experience with the Chase, and are in a position to expedite
local transactions for our customers.
Chase facilities and services for promoting commerce
among the Americas are at the disposal of our corres­
pondents.

THE C H A S E N A T I O N A L B A N K
OF THE CITY OF NEW YORK
M em b er F e d e ra l D eposit Insurance C orp ora tion

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Northwestern Banker September ID'i 'f

44

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To get acquainted with our complete insurance protection
program.

M a\e it a point to stop in at our offices and

investigate our agency plan which is enabling more than a
hundred bankers to better protect the interests of their clients.
G et acquainted with our General Agency in your territory.
Gaeckle and W iedenm an, Madison, South Dakota
Fritz A . Forseth Company, Aberdeen, SouthjDakota
Maynard V . Mills Agency, Stuart Bldg* Lincoln, Nebraska
J. B. Bridston, Grand Forks, North Dakota

WESTERN

MUTUAL

Fire Insurance Co.
9th & Grand

Northwestern Banker September 1944
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Des Moines, Iowa

Let Personal
Property Floater
Be Your “A c e in the Hole“
This Coverage is Offered In One of the Broadest
Policies Written Today
P ERSONAL

property floater has
been aptly described as a form of
policy which furnishes in one con­
tract, with one premium, “all risk” in­
surance with minor exclusions. Pro­
tection is provided under the policy to
personal property, including furniture,
clothing, rugs, silverware, objects of
art, sport equipment, musical instru­
ments, and practically all other person­
al property, against the risks of fire,
lightning, tornado, water damage, riot,
strikes, explosions, windstorm, earth­
quake, dust storms, hail, smudge and
soot. Also against burglary, theft,
holdup, larceny, mysterious disappear­
ance, malicious damage, vandalism,
collapse of buildings, damage by air­
craft or by motor vehicles; also dam­
age caused by any and all transporta­
tion hazards.

Coverage Is Worldwide
Importantly, coverage under the
P.P.F. policy is worldwide, covering
wherever the property may be located,
and this unlimited scope accounts in
large measure for its popularity. Brief­
ly stated, protection continues whether
the property is in the principal or sec­
ondary residence of the assured; or at
hotels and clubs, or at schools and col­
leges; at place of business, in restau­
rants; also while traveling or any­
where within the territorial limits of
the policy.
Some of your assureds may not
know, for example, that the P.P.F. pol­
icy-covers while their property is in
storage, or while at the cleaners, dyers,
laundries, tailor, etc., or while travel­
ing whether by land, water, or air.
Also insured are packages sent by par­
cel post, express, freight or any other
means.

Policy Limitations
It’s well to fix in your mind at the

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Federal Reserve Bank of St. Louis

outset certain limitations as to cover­
age in case of loss. Note these limita­
tions:
(a) Unlisted personal j e w e l r y ,
watches and furs of an entire house­
hold are covered for an amount up to
$250 in any one loss. Such articles can
be insured in excess of $250 for a
slight extra charge against direct loss
or damage by fire and lightning, sup­
plemental cover, burglary and holdup.
(b) Money, securities, stamps, let­
ters of credit, passports and railroad
and other tickets are covered up to $50
in any one loss. Your client, however,
may increase the limit on money up to
$250 for an extra charge, and the limit
on securities, etc., similarly, may be
increased to $500.

What P.P.F. Policy Does Not Insure
Before launching forth into a sales
talk on P.P.F. and its advantages as
“all risk” coverage, memorize as com­
pletely as possible situations and con­
ditions where the policy does not
cover. These policy exclusions are as
follows:
The P.P.F. policy does not insure:
(1) Property pertaining to the busi­
ness, profession or occupation of the
persons whose property is insured,
with the exception of professional
books, instruments and other profes­
sional equipment while actually with­
in the residences of the assured; (2)
property ordinarily situated in resi­
dences of the assured in states where
this policy is prohibited by law or by
state administrative regulations; (3)
property of any government or sub­
division thereof; (4) property on exhi­
bition at fairgrounds, on the premises
of any national or international expo­
sition unless such premises are spe­
cifically described in the policy.
(5) Personal property such as auto­

mobiles, motorcycles, aircraft, boats,
other conveyances, their equipment,
furnishings or appurtenances except
when removed therefrom and actually
in the premises of residences of as­
sured, are not insured. Neither are
animals. But it’s wise to remember
that the following are covered: Bi­
cycles, tricycles, baby carriages, in­
valid chairs and similar conveniences.
(6) The policy does not insure
against breakage of eye glasses, glass­
ware, statuary, marbles, bric-a-brac,
porcelains and similar fragile articles
(jewelry, watches, bronzes, cameras
and photographic lenses excepted), un­
less occasioned by theft or attempt
thereat; vandalism or malicious mis­
chief, or by fire, lightning, windstorm,
earthquake, flood, explosion, falling
aircraft, rioters, strikes, collapse of
building, accident to conveyance or
other similar casualty, nor unless like­
wise occasioned, against marring or
scratching of any property not specifi­
cally scheduled in the policy.
(7) Furthermore, mechanical break­
down is not covered nor is loss or
damage to electrical apparatus caused
by electrical disturbance other than
lightning “unless fire ensues and then
only for loss or damage by such ensu­
ing fire.”
(8) Other exclusions include wear,
and tear; loss or damage caused by
dampness of atmosphere or extremes
of temperature unless such loss or
damage is directly caused by rain,
snow, sleet, hail, bursting of pipes or
apparatus; deterioration, moth, vermin
and inherent vice; damages to property
(watches and jewelry excepted) occa­
sioned by or actually resulting from
any work thereon in the course of any
repairing process.
(Turn to page 46, please)
Northwestern Banker September 1944

46
(Continued from page 45)
(9) Last, but not least, the usual
war exclusion clause is part of the con­
tract.
Most of the companies have already
emphasized in P.P.F. literature and
letters to producers that the premiums

paid by the assured for present insur­
ance can be applied to reduce the first
cost of P.P.F. In other words, credit
is permitted for existing specific insur­
ance on personal property of a nature
covered under the policy but such ex­
isting insurance must have been in

A G o o d Company with
which to insure

A G ood Company
to Represent

Total Insurance in Force_______________________ $702,671,414
Total Dividends and Savings Since Organization_$18,490,386

force at least sixty days prior to effec­
tive date of the P.P.F. policy.
It’s a smart idea to familiarize your­
self with the $15 and $25 deductible
clauses and here’s the way they are
described by one company:
“On policies issued subject to the
$15 deductible clause applicable to un­
scheduled property, a credit of 20 per
cent of the premium charged for the
blanket portion Item (a) paragraph 3
of the policy (but not less than $10 nor
more than $25 on annual policies, and
not less than $30 nor more than $75
on policies written for a period of
three years) may be allowed. In ar­
riving at the amount of such credit
there shall first be deducted from the
full premium charged for Item (2)
paragraph 3 of the policy, such credits
for existing insurance as may be al­
lowed.
“On policies issued subject to the
$25 deductible clause applicable to un­
scheduled property, a credit of 30 per
cent of the premium charged for the
blanket portion Item (a) paragraph 3
of the policy (but not less than $15
nor more than $40 on annual policies,
and not less than $45 nor more than
$120 on policies written for a period
of three years) may be allowed. In
arriving at the amount of such credit
there shall first be deducted from the
full premium charged for Item (2)
paragraph 3 of the policy, such credits
for existing insurance as may be al­
lowed.”

■V

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A

To Defray Cost

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
OFFICERS
H. B. Carson................... P r e s i d e n t
C. M. Reed............... V i c e P r e s i d e n t
L. K. Sharp...................... S e c r e t a r y
John W ise....................... T r e a s u r e r

J. E. Robb........A s s i s t a n t S e c r e t a r y
L. McK ibban..A s s i s t a n t S e c r e t a r y
Clarence Letz
A s st. T rea su rer
I. E. Sams
M g r . C a n a d ia n D e p t .

D es M o in e s , Io w a

S

c a r b o r o u g h

H a m ilt o n , O n ta rio

^ C

In order to give some tangible recog­
nition to NwNL fieldmen who serve
as leaders of their local life underwrit­
er associations, O. J. Arnold, president
of Northwestern National Life, has an­
nounced the company stands ready to
pay part of the costs of a trip to the
N.A.L.U. Convention for any NwNL
agent who is president of his local or
state association, provided the associa­
tion will also pay a share of the costs.
For such men the company will pay
up to one-half the amount provided by
the association to defray expenses of
the trip, such expenses to include rail­
road fare, hotel room during the con­
vention period, registration fees,
meals, and other necessary expenses.

o m pan y

CounÁeioiá.ficr~Ñzt4tfdL
First National Bank Building, Chicago

Northwestern Banker September 1944


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

Horace A. Smith, Iowa Representative
Des Moines, Iowa

»,

47

25"' Year
.. . A C H I E V E M E N T . . .
GROWTH OF ASSETS:
January 1 9 2 1 , $ 9 ,7 7 7

January 1 92 2, $ 7 4 ,2 7 3

January 1 9 2 3 , $ 1 0 7 ,2 3 1

J a n u a r y 1 9 2 4 , $ 1 5 9 ,9 0 4

January 1 9 2 8 , $ 2 5 6 ,0 3 9

January 1930, $430,677

January 1935, $ 7 7 1,17 0
J a n u a r y 1 9 4 0 , $ 1 ,7 0 4 ,8 0 9

January 1944, $3,495,638
N o w in F o r c e O v e r

$33,000,000

F ife In s u r a n c e

POLICVHOLDCR’ S liRTIOML LlfC
I N S U R A N C E

C O M P A N Y

SIOUX FALLS

SOUTH DAKOTA

On Our 25th Anniversary
W e Pause to Pay Tribute to Our Friends of the Banking: Fraternity


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Federal Reserve Bank of St. Louis

who are responsible in a largje measure for our achievement.

Northwestern Banker September

48

M y First Case W as a

Wülk-It}

W as It Possible the Life Insurance Business Could Be That Easy?
of mine suggested that what I was
seeking might as well be found in the
field of life insurance, and that the
rewards there might be much more
satisfying, as he could so ably demon­
strate, I listened with an attentive
ear as he charted for me the course of
a new profession.
My first case was a walk-in. Before
I had finished taking a short training
course a friend asked that he be al­
lowed to purchase some insurance. It
was a small policy, but I began to feel
the “bug.” Was it possible that the
life insurance business could be that
easy?

By Glenn F. Waugh
Special Agent
Bankers Life Insurance Company
of Nebraska
Fairbury, Nebraska

S ELLING was a new “game” for
me when I sold my first policy.
I had attended law school and had
survived four years of the ordeal of
building up a practice before I decided
that the future of the small town law­
yer wasn’t as promising as the future
of the young lawyer at the turn of the
century. The practice of the law,
though a noble profession, didn’t seem
to offer the promise of material re­
ward commensurate with today’s ex­
pectations, and so, when a good friend

While taking my training I began to
compile the names of all the likely sus­
pects I could think of and even before
I had finished learning even the rudi­
ments of the business I began calling
G L EN N F. W A U G H
“ M y old formula worked”

GREETINGS TO OUR MANY

IO W A BAN KER FRIENDS!
W e sincerely appreciate the many fine business contacts we
have enjoyed for years among members of the Iowa Bankers
Association. Best wishes to you for your 1944 Annual Convention.
W e sp ecia lize in C red it L ife Insurance
and are th e o n ly Iow a c o m p a n y o fferin g
this ty p e o f p r o te c tio n to Iow a hanks.

•

Webster Life Insurance Company
1733 Grand Avenue, Des Moines, Iowa

THE DA R L I NG
A G E N C Y

BANKERS LIFE COMPANY
818 Merchants Nat. Bk. Bldg.
CEDAR RAPIDS, IO W A

Northwestern Banker September 1944


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

on the names I had with about the
same regularity as does a man pro­
gressing down a row of corn and cut­
ting down the stalks with a corn knife.
My skill as yet precluded any query
any more skillful than whether they
had any life insurance, but it yielded
surprisingly good results. Apparently
I had seen prospects where more skill­
ful men had failed, and, calling on the
right people, rather than the skillful
manipulation of a man’s thoughts and
emotions, which talent, if I possessed
in an unrefined state, began to pay div­
idends. However, at no time, even
from the first, did I permit my list of
names to grow too short. There were
always plenty of people to see, and
most of my evenings were dedicated to
that purpose.
Plenty of people to see, lots of eve­
nings devoted to seeing them when
they could be found, a constant alert­
ness for the names and identities of
people who might be prospects, and
the energy to ask them, under honor­
able circumstances, whether they had
any life insurance largely supplanted
any particular skill for the first sev­
eral months. Even after that, when
I gradually became more skillful in
the arts of salesmanship the old for­
mula worked, and I’m banking that it
always will.
I’ve usually found that a prospect
will greet you in the same frame of
mind with which you greet him, and

49

Here Is the Reason VPhy iVlany
Bankers Own and Recommend
The General American Life
Preferred Ris\ Contract . . .
AVERAGE ANNUAL
NET OUTLAY

FOR RETIREMENT—
AGE 65
Monthly Income
( 10 yrs.

Annual
Cash V a lu e

and li fe )

10 yrs.

2 0 yrs.

GENERAL AMERICAN LIFE . .$229.90

$195.30

$182.40

$5,230.00

$34.36

Company A ................................... .. 242.40

197.50

191.00

5,230.00

32.90

Company B ................................... . . 242.80

220.20

207.60

5,540.00

33.36

Company C ................................... .. 261.60

204.10

185.90

5,230.00

34.40

Company D ................................... .. 267.70

211.00

203.70

5,229.20

34.35

P rem iu m

Based on a $10,000 contract at age 35.

☆

G E N E R A L A M E R I C A N LIFE
INSURANCE COMPANY
Walter W. Head, President


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

ST. LOUIS, 3, MISSOURI

Northwestern Banker September

50
that if you approach him in an un­
affected, buoyant, sincere sort of man­
ner he will react in much the same
way. I approach him with an attitude
that the purchase of as much insur­
ance as he can afford to pay for this
year, and next and next, is just darn
good common sense, that I’d like a
few minutes of his time to explain how
it works and that if he decides he
doesn’t want it or can’t pay for it that
we’ll still remain friends. I give him
the impression that if he doesn’t buy,
the next fellow will, and so I’m not too
concerned whether or not he does,
right now. When I take my departure
I attempt to leave the impression that
if he hasn’t bought them, he will the
next time I see him.
If I have any “secret” which I could

pass on it would be but this: Keep on
hand the names of plenty of people to
see, be constantly alert to keep that
list replenished, give the “good” names
precedence when calling, call on asmany of those names as you can every
day, spend a good many of your eve­
nings calling, be sincere and a gentle­
man, and above all, call, Call, CALL.

One at a Time
G.I.: “ I want to buy a present for
my wife.”
Sweet Young Sales Lady: “ Could
I interest you in some net or rayon
hose?”
G.I.: “Yeah, but let’s get the present
for my wife first.”

L E G A L Q U ESTIO N S A N D
A N SW ER S
(Continued from page 15)
No. The constitutional right of an ac­
cused to have the assistance of counsel
may he waived, and a waiver will he
implied where the accused, being with­
out counsel, fails to demand that coun­
sel be assigned to him.

A public official in Michigan ac­
cepted a bribe from an individual for
doing certain things for that individ­
ual. The acceptance of the bribe was
discovered and criminal proceedings
were instituted against the official.
The official sought to justify his action
by asserting that the bribe money was
to be used for a worthy cause. Could
he do this?
No. In a prosecution for accepting
a bribe, the purpose for which the
bribe money is used has no hearing on
the guilt or innocence of the accused.
The gist of the offense is the accept­
ance of a bribe and the use of the bribe
money is immaterial.

L e f t , SH E R R Y F ISH E R

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

(In U. S. Army)

CONNECTICUT MUTUAL LIFE INSURANCE CO.
FISHER & FISHER, General Agents
921 Fleming Building, Des Moines
In q u ir ie s in v ited fo r B rok erage or P a rt T im e C o n tra c ts

F

o r

Y

o u r

F

C

a r m e r

l ie n t s

Low Cost, Non-Assessable

FARM LIABILITY INSURANCE
Allied Mutual pioneered this worry-free protection

FARM

which defends the farm owner in case cattle get

OWNERS

into neighbor’s corn, loose horse injures motorist
on highway, hired man is hurt hy tractor— or any

N o t l i v i n g on
forms need this

Up to $250 medical, surgical, hospital payments

protection. Write

for hired men or girls regardless of responsibility.

for facts today.

one of a hundred other common farm hazards.

Essential protection.

Easy to interest farmer.

vestigate for your agency.

W rite

ALLIED M U T U A L

In­

Bowman, an Iowa banker, and his
wife made a joint will that was purely
mutual in its terms. Each testator
bequeathed his entire estate to the
survivor and neither made any devise
of the nroperty owned by the survi­
vor at his death. Should the instru­
ment be regarded only as the will of
the first to die?
Yes. Where a joint will is purely
mutual in its terms, each testator beoueathimr his entire estate to the sur­
vivor and neither making any devise
of the property owned by the survivor
at his death, such will is to be con­
strued as a single instrument and is
regarded as the will of the first to die
and has no validity as the will of the
survivor.

Northern Trust, Chicago
The Northern Trust Company’s
statement of condition at the close
of business June 30, 1944, revealed a
total footing of $665,758,941.94, an in­
crease of $98,787,000.00 over March 30,
1944. Loans and discounts are up to
$49,250,803.13. U. S. government se­
curities have increased some $78,000,000.00 to a total of $391,677,305.82.
Cash and due from banks aggregated
$126,499,198.19, while deposits showed
a gain of almost $99,000,000.00, to stand
at $636,515,956.84.

CASUALTY COMPANY
Harold S. Evans, P r e s i d e n t
Hubbell Building

Northwestern Banker

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

Des Moines 7, Iowa

September 19'f 'i

“ I can’t diagnose your case. I think
it must be drink.”
“All right, Doctor—I’ll come back
when you’re sober.”

51

A Labor-Saving Insurance Policy
By Henry Scarborough, Jr.
President
Scarborough & Company
Chi cago

COMPARATIVELY new insur­
ance policy covering collection
items sent out of town as “tran­
sit letters” or “cash letters” developed
by Scarborough & Company of Chi­
cago, is attracting favorable attention
among bankers throughout the coun­
try. This policy not only fills a gap
in the chain of protection on transit
or cash letters taut it also offers an
opportunity to reduce operating costs
considerably.

A

The idea for this policy grew out of
the fact that bankers generally were
faced with two serious operating prob­
lems: (1) To reduce or eliminate the
expense of recording items making up
their cash letter; (2) To conserve man­
power through more efficient alloca­
tion of personnel. It was seen that
proper insurance was a medium
through which the expensive and timeconsuming task of keeping detailed
records of collection items could be
eliminated. Under the terms of this
policy, all the bank is required 'to do
is to keep a duplicate adding machine

a customer request information which
would necessitate reference to the
transit letter records and is the banker
willing to pay a big price for being able
to answer these few requests? The
question of exchange can easily be dis­
posed of by making such charges be­
fore the check leaves the bank for col­
lection. A sample table may be set up
which will equitably distribute pos­
sible under-charges in one case and
over-charges in another. Such a pro­
cedure would as a matter of fact effect

tape of all items enclosed with a tran­
sit letter.
Such a radical departure from estab­
lished banking procedure immediately
raises several questions in the. bank­
er’s mind. “ How can I accommodate
my customers who might ask for in­
formation concerning checks they de­
posited” ? “How will I be able to
charge back exchange” ? “What must
I do in case of loss” ? Strange as it
may seem the answer to these ques­
tions is very simple. How often does

BONDS
at worth-while
savings
H [

e

RE

is

why

in c r e a sin g

nu m bers

I o w a b a n k s are r e c o m m e n d in g
ers

M u tu a l

for all ty p e s

of

E m p lo y ­

o f fid e lity and

s u r e ty b o n d s —

Why Not Represent
iLThe Dividend Paying
Company of America ”
In Your Territory?

We Have 15 Banker Agents in
Southeastern Iowa.
Write: James H. Copeland
301-2 First Nat. Bank Bldg.,

RATES — Substantially
Probate Bonds
Public Official Bonds
C ity Schoo l,
C o u n ty , S ta te

on

m ost

types

SECURITY — L argest,
Iow a.

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over

strongest com pany in

$7,000,000.00.

On

U.

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T reasury D ept. Approved L ist.

License Bonds
B eer, C ig a rette,
etc.

SERVICE — A n
every locality.

Individual and
Schedule Fidelity
Bonds

Davenport, Iowa
fo r contract

low er

of bonds.

Contract Bonds

Iow a

com pany.

A ge n ts in

P rom pt service on all your bond

needs.
W r ite fo r in form ation on this B E T T E R bond­
in g service fo r your cu stom ers.

J. R„ OWENS, Manager, Bond Dept.

The "
x Mutual Life
Insurance Go. of Milwaukee

Assets __________ 1,637,443,394
More Ordinary Life Insurance in force
in Iowa than any other Company.


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

Northwestern Banker September t9bb

52
a further operating economy by elim­
inating the necessity of having to go
back over the transit records to allo­
cate these exchange charges.
What to do in case of loss. Admit­
tedly one does not relish the thought
of having to trace as many as several
hundred items with only an adding
machine tape as a record. However,
this insurance is written on the reason­
able assumption, which has been borne
out by experience, that if a loss does
occur most of the items involved can
be traced and identified even with no
record other than a duplicate adding

machine tape and the usual deposit
slip. It is recognized that this would
call for some extra work but due to
the relative infrequency of such losses,
the majority of the banks will seldom,
if ever, be called upon to perform that
task. On the other hand, the saving in
time and expense resulting from the
reduction of transit letter record-keep­
ing to a mere adding machine tape is
in many cases equal to two, three and
even four times the premium charged
for this policy. To put it another way,
with this policy it is safe to get along
with just an adding machine tape,
while without it, it would be folly to
do so.
It is also well for bankers to remem­
ber that even though they keep de­
tailed records, identification may be

easy enough but collection is by no
means guaranteed. This is especially
true with items cashed over the coun­
ter. The Transit Letter Policy reim­
burses the bank for all items which
remain unidentified or uncollected
thirty days after discovery of loss.
Then, too, the human element and
mechanical defects of recording de­
vices must be considered. An actual
case history may well illustrate this
point:
The bank in question uses a recordak and one film will last approxi­
mately three days. After the film was
removed and developed, it turned out
to be blank. Here a defect in the recordak was not discovered until three
days transit items had supposedly
been photographed. Some of those

Greetings to Iowa Bankers
Your postwar planning conference this
month in Des Moines will bring together the
best banking brains of the state. Upon your
shoulders rests much of the econom ic sta­
bility of Iowa's business structure.

How to choose
a life partner
John Anderson here has made him­
self a place in a good midwestern en­
gineering firm. He worked his way
through school, served his apprentice­
ship on some tough construction jobs.
His salary is not big. It m ay become
bigger. But regardless of that, he is a
man of character. W e ’d like to recom­
mend him as a “ life partner” for you
. . . a good man to have as a co-policy­
holder in a life insurance company.
You see, we give our agents an extra
incentive to sell this kind of man. W e
know that much of the strength of this
company lies in the strength of the men
and women who buy its policies . . . in
their thriftiness, in their determination
to carry on without lapsing. For most
lapsed policies mean a loss not only to
the man who lapses, but to the com­
pany, and ultimately to its policy­
holders. T h a t’s why your Northwest­
ern National agent is given a special
incentive to write for you exactly the
kind and amount of insurance you need
and can afford, to keep your insurance
program in good health — and to seek
out good life partners for you in the
óther policyholders he serves . . . men
of character like John Anderson.

Northw

estern

N ational L I F E
IN S U R A N C E

COM PANY

O . J . A r n o ld ,
P r e s id e n t

For a Good Insurance Buy - Buy Hawkeye
1. Automobile, All Coverage

4. Burglary

2. Workmen's Compensation

5. Fidelity and Surety

3. General Liability

6. Plate Glass

HOME MUTUAL INSURANCE COMPANY OF IOWA, J & ,
A

FULL

LEGAL

RESERVE

COM PANY

F I N A N C I A L
S T A T E M E N T
H. J. ROWE, President
A s of January 1, 1944
ACE ROWE, Secretary
ASSETS

U. S. Treasury Bonds.................................................................................... $718,725.95
Iowa Road and Improvement Bonds....................................................... 428,355.86
Cash in Banks............................................
Cash in Agents Hands..............................
Non-ledger Assets ....................................
Furniture, Fixtures and Automobiles
L IA B IL IT IE S
Losses in Process of Adjusting— Schedule “ O " ....................... ....$129,225.74
Estimate Expense of Adjusting.................................................................
23,747.52
Assets Not Admitted......................................................................................
37,795.03
Reserve for Taxes and Expenses.............................................................
29,390.22
Unearned Premium Reserve.............................................. •....................... $556,089.88
Surplus to Policyholders.............................................................................. 740,937.07

M in n e a p o lis ,
||

s

E C Ù ^ÌF Y H

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

M in n e s o ta

September

$1,147,081.81
200,944.83
107,224.46
46,393.79
15,540.57
$1,517,185.46

$ 220,158.51
1,297,026.95
$1,517,185.46

Increase
Increase
Increase
Increase

in
in
in
in

U. S . T rea su ry B o n d s ...........................................................$ 8 8 .1 6 6 .4 9
U nearned Prem iu m R e se rv e ............................................
2 .4 3 0 .3 9
G ross A s s e t s ............................................................................. 1 1 7 ,6 6 3 .7 6
S u rp lu s ......................................................................................
9 8 ,2 7 5 .9 4

53

items were lost while in transit and
the bank had to depend on its other
records for identification. The result
—a loss to the bank in spite of much
effort put forth to trace the items.
In addition to making it possible
for a bank to dispense with its transit
letter records, this policy offers de­
cided advantages through insurance
protection. Most bankers know that
the transit letter is fully protected
against loss under the Bankers Blan­
ket Bond they carry or the Bond car­
ried by the correspondent or payee
bank, provided the loss occurs on a
banking premise or while in transit
in the custody of bank messengers or
an armored car service. However,
there is no protection after the transit
letter enters the custody of such com­
mon carriers as the Railway Express
Agency or the United States mail serv­
ice. The Transit Letter Policy fills this
gap; it picks up where coverage under
the Blanket Bond stops.
Some interesting extensions or re­
strictions of coverage at appropriate
premium adjustments are worth men­
tioning. For an additional premium
this policy may be endorsed to relieve
the bank of the necessity to charge lost
items back to its customers if these
customers after diligent effort are un­
able to obtain duplicate checks and as
a result would suffer a monetary loss.
This endorsement is obviously and
very decidedly a valuable good-will
feature.
At a substantial discount in pre­
mium this policy may also be endorsed
to the effect that the bank agrees to
keep either complete records or rec­
ords of items cashed over the counter,
thus making the insurance protection
available to those banks who for some
specific reason do not want to give up
their transit records.
The Transit Letter Policy is indeed
unique and fills a decided gap in a
well-rounded insurance program. It is
flexible and thus can be “tailored” to
the individual requirements of any
bank. Premium charges based on av­
erage daily sendings are low and with­
in the reach of the smallest country
bank. As a matter of fact this policy
actually earns money for the bank be­
cause the elimination of transit rec­
ords more than offsets the cost of the
policy.

To Provide Jobs
An investment banking postwar
program to provide jobs for returning
fighting men and training for the jobs
was announced by the Investment
Bankers Association of America.
Julien H. Collins of Harris, Hall and
Company, Chicago, chairman of the

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

education committee of the association
which is developing and will be in
charge of conducting the plan, de­
scribed it as a three-purpose program:
(1) to enable investment banking more
effectively to offer careers to young
men coming out of the armed forces,
(2) to help the business recruit prom­
ising young men from the returning
fighting men, and also from college
campuses when graduates no longer
go directly into service, and (3) to
assist in maintaining high standards of
ethics and professionalism in invest­
ment banking by indoctrination of new
men in the business in sound princi­
ples of finance and investment.

The program, which will be nation­
wide, calls for “condensed, profession­
al” courses of training to be provided
in all the major cities. Locally, each
group of the association is to seek the
cooperation of its own universities in
presenting the course, Mr. Collins said.
It is proposed to have the courses
ready for offering next winter in the
event the number of men returning
from the services has attained a vol­
ume to justify a start on the program
by that time. Preliminary steps have
been taken, it was said, and the asso­
ciation expects to engage an education
director to take over the direction of
the program on a full time basis.

OUR PRUDENTIAL AGENCY OFFERS
1.

A Company w e ll a n d fa v o r a b ly k n o w n .

2.

Policies at fa v o r a b le initial rates.

3.

Your Contract a sin g le c a s e b r o k e r a g e a g r e e m e n t guaranteeing all first and renewal commissions.

4.

Assistance in p re se n tin g a n d c lo s in g c a s e s from a n y o n e of
"W e T h ree" and

No Split Commissions.

SIDNEY A. KENT, Manager
Fred Van Rheenen, Les Brooks, Assistant Managers
716 Equitable Building, Des Moines
Home Office, Newark, N. J.

Our BANKER'S CONTRACT
G ives y o u . . . .
1. A c o m p a n y w ith years o f
b a n k agen cy e x p erien c e.

Attractive contracts for
bankers— part-time basis
m

2. A c o m p re h e n siv e lin e o f
p o lic ie s i n c lu d in g :
L IF E
HEALTH

& A C C ID E N T

H O S P IT A L IN S U R ­
ANCE

W e feature a special 20-pay or Ordi­
nary Life Policy insuring ALL members
of the family in ONE policy. Inquiries
invited.

©

A N N U IT IE S
3. C o m p le te B ro k e ra g e

S erv­

T. D. CARNAHAN
General Agent

ice.
R A L P H E. D eM A R IS
General Agent

The COLUMBIAN NATIONAL

The Minnesota Mutual
Life Insurance Co.

LIFE IN S U R A N C E C O M P A N Y
1200 Paramount Bldg.
DES M OINES

606 Walnut Building
Des Moines

Northwestern Banker September 1944

54

Liie Insurance and Free Enterprise
E VERY time we advertise over the

For life insurance is the very em­
bodiment of free enterprise. It was
born of, and has been nurtured by, the
fundamental and God-given right of
personal liberty—freedom to plan and
to strive for a more abundant life;
freedom to provide for one’s family,
to educate one’s children, to save for
one’s later years; freedom to think for
one’s self; freedom to set one’s busi­
ness course and freedom to build one’s
business future unfettered by restric­
tions imposed for the greater glory of
the state.
These are the personal liberties that
constitute free enterprise, and without

radio, in the magazines or in the
newspapers, we in effect give no­
tice to the American public that Amer­
ica’s life insurance companies are
keeping high the threatened flame of
free enterprise.

FIRST POLICY ISSUED
FEBRUARY I.JÖ43

By Robert L. Barbour
which there could be none of our great
institutions; without which there could
be no life insurance. These are the
personal liberties that inspire initia­
tive; that provide the incentive to do
one’s best; that have been the main­
spring of accomplishment ever since
Creation. Let no man, no government,
ever be guilty of encroaching one iota
upon our fundamental freedoms lest
he bring down around him all the
progress of the past and all the prom­
ise of the future.

Tiie Mutual Life Ins. Co. of N. Y.
Initiates the

NEWELL C. DAY saying . . .

LIFETIME PLAN
1—

P r o v id e s
fo r

th e

tw o

e f fi c ie n t ,

2—

E n a b le s
s t e a d ily

N ew

career
th a t

in c r e a s in g

sou rces

that b u s in e s s is fin e!

of

U n d e r w r ite r
in c o m e ,

to

w it h

1944 w ill b e the b e st

in c o m e

y e a r in the 51 y e a r s of this a g e n c y .

U n d e r w r ite r —
e n jo y

Bankers

a re u sin g our c o m p le te tool kit from Ju venile

a

le v e l

In su r a n c e to A n n u itie s to s o lv e their clien ts'

v o lu m e —

p r o b le m s.
3—

Pays
m ore

over

4—

th e

a

P r o v id e s
erou s

U n d e r w r ite r

p e r io d
th e

of

s u b s t a n t ia lly

years—

U n d e r w r ite r

W h y d o n 't y o u in v e s tig a te ?
w it h

a

gen­

NEWELL C. DAY, Gen'l Agent

r e t ir e m e n t i n c o m e .

Inquire now of

Equitable Life Ins. Co. of Iowa

THOMAS B. READ, Mgr.

730 Davenport Bank Bldg.

Davenport, Iowa

112 2 D e s M o i n e s B l d g .

1867.

D e s M o in e s , I o w a

G r e e t i n g s !

.

Seventy-seventh Anniversary Year . .

1944

G R E E T I N G S

to the
. . . and a hearty welcome
State Farm Membership Plan gives
you more insurance for your money.

to the members of the

A perpetual policy has saved policy­
holders over $40,000,000 since 1922.
One million
force.
Over 7,000
Canada.

automobile
agents

in

40

policies
states

in

IO W A
BANKERS

IOWA BANKERS
ASSOCIATION

A S S O C IA T IO N

and

9

W e have already paid our two m il­
lionth claim.
State Farm Mutual policies are non­
assessable.

HOMESTEADERS LIFE

W rite for FREE Booklet for details.

ASSOCIATION

INTER-STATE BUSINESS
MEN’S ACCIDENT
COMPANY
A C C ID E N T

State FarmInsurance Cj’s.
Iowa State Agency
805 Valley Bank Bldg.
Des Moines, Iowa

Northwestern Banker September 19Ü


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

S IC K N E S S
H O S P IT A L P R O T E C T IO N

A . A . Ball, President

R obert A .
601 Securities Bldg., Des Moines

B ro w n , P resid e n t

D es M o in e s, Iow a

55
When you ask me, “How are we
meeting our wartime responsibili­
ties?” , I can tell you sincerely that I
know of no better way we could meet
those responsibilities than to keep
ever before the American public a
glorious example of what free enter­
prise means.

your questionnaire for the help and
suggestions it will contain.”
“We believe that 95 per cent of the

BO*»

Y O U R BANK STATEM ENT
A SILENT SA LESM A N

»

(Continued from page 26)
make the statement easily read by the
customers.”
“ Stress quality and not quantity in
our banks.”
“Am sure that not more than 10' per
cent of the people ever read a pub­
lished bank statement.”
“ Stress the cash and U. S. bonds,
thus calling attention to the liquidity
of the bank and emphasizing the
strength of the capital funds of the
bank, though neither of these, of
course, has any such appeal as does
that of courteous and confidential at­
tention to the requirements of the
prospect.”
Another bank would stress “simplifi­
cation—such entries as ‘pledged as­
sets,’ ‘preferred deposits,’ etc., don’t
mean much to the average reader.”
“ Our present style of statement does
not mean much, so we are contemplat­
ing making a change to something
more as a narrative.”
“Frankly, the subject has had very
little thought by anyone in our organi­
zation. There is room for some very
good improvements.”
“ In rural communities we doubt if
the published bank statement in these
times means anything to a customer.”
“ I believe for advertising purposes it
would be well to describe each item
and explain of what it consists in your
local paper.”
“ Make the condensed published state­
ment as condensed as possible.”
“The public seems to have little in­
terest in bank statements in these
times.”
“ Make the statement simple and
short; explanatory information under­
neath each item is sometimes effective
and we have used it in our published
display statement when we have plenty
of space.”
“ How to create the best possible im­
pression with the reading public is
hard to answer, but you certainly have
planted a thought by your question­
naire.”
“Our condensed published statement
of June 30th is enclosed; I am of the
opinion that you have hit on some­
thing that many bankers will be inter­
ested in and will await the report of

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

public is not interested in the pub­
lished bank statement.”
The last comment for which we have

!
A ***

your
As Insurance

f

K.C

Counselors to

b a n k s o u r entire o rg a n iz a tio n from the s a le to the c la im a d ju stm e n t
is g e a r e d to ren d er s e r v ic e

d ep e n d a b le

prom p t

and

H. P. MARTIN
Manager
R. O. ALBRECHT
R. W . WETHERALD
Special Agents
Old Colony Bldg
Des Moines, Iowa

L. R. MOELLER
Executive St. Agt.

, M e rcu ry
In d e m n it y

I l l W Fifth St.

Com pany

*

OF SAINT PAU L

Greetings
to
Iow a B ankers

CRUM and
FORSTER
M an agers

FROM

The Northwestern Mutual Life
Insurance Co. of Milwaukee
j. j. HUGHES
GENERAL AGENT

United S tates F ire In su ran ce Co.
Th e N orth R iv er In su ran ce Co.
W e stch e ste r F ire In su ran ce Co.
B ritish -A m erica A s s u r a n c e Co.
W e ste rn A s s u r a n c e Co.

635 Insurance Exchange Building
Des Moines

W . H. FAULKNER
S ta te A g e n t
H OM ER TEM PLETON

W A L T E R N ORDELL
(In U . S . N a v y )

"More Ordinary Life Insurance in Force
in Iowa than Any Other Life
Insurance Com pany!"

S p e c ia l
505

In su ra n ce
O f f ic e

A g en ts

E x ch an ge

T e le p h o n e

B u ild in g

N o . 4 -5 9 3 2

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

Northwestern Banker September 1944

56

space to include says this: “Published
bank statement must be a farce (as
they now appear) to the thinking pub­
lic. The non-thinking public (which are
the majority) use the size of the bank
building and total footing in statement
as their gauge (the bigger the better,
is the big idea). To some ‘first na­
tional’ spells first claim on all re­
sources from Main street to the alley.”
We thank those who have responded
to this N o r t h w e s t e r n B a n k e r question­
naire on condensed published bank
statements and who have made this
summary of the replies possible. If
any of our readers should wish to com­
ment on the answers to any one or all
of the foregoing 12 questions, we
should be very glad to have such com­
ments and to publish them with or
without identification as you may di­

rect us. We believe that much can be
done to improve the pattern of the
average bank statement and that the
statement is entitled to the best com­
bined thinking talents of boards of
directors and bank staff members be­
cause the condensed published bank
statement is potentially a great “sales­
man” for every bank, but doesn’t that
“ salesman” need all the help our indi­
vidual banks can give him?

Banker Heads a
New Committee
A new committee of St. Louis busi­
nessmen to handle the vital problem of
disposal of government-owned prop­
erties, plant equipment, materials and
supplies after the war has been set up
by the St. Louis Chamber of Commerce

and will be headed by John W. Snyder,
vice president of the First National
Bank, Chairman of the Board Arthur
G. Drefs has announced.
Snyder formerly was executive vice
president of the Defense Plant Corpo­
ration, supervising for the government
the financing and arrangements for the
building and equipping of hundreds of
plants all over the United States, in­
cluding St. Louis. He will serve as
chairman of the Chamber’s postwar
committee on disposal of governmentowned properties, plant equipment,
materials and supplies.
“ Now the time has arrived when
plans must be made for their demobili­
zation,” Mr. Drefs declared in making
the appointments, “and the city of St.
Louis is very fortunate in having such
an outstanding executive to handle this
important job.”
Emphasizing the importance of the
problem of disposing of governmentowned properties and materials after
the war, Drefs declared that estimates
most frequently made of the volume of
surplus materials and supplies which
may be on hand at the termination of
the war range from $60,000,000,000 to
$100,000,000.000.

EIGHT STRAIGHT YEARS

CHAMPIONS
OF THE UNITED STATES

CASH . . . and . . . VOLUME
W e Invite Other Banks to investigate
Our "Bankers' " Set-up
W . K. N IE M A N N

T h e W. K. N I E M A N N A g e n c y

M ERC
HANTS
MUTUAL

Bankers Life Company of Iowa
Nine-O-Nine Fleming Building

B a n k in g

and

e x p e r ie n c e
e x c e lle n t

in v e stm e n t
p r o v id e

an

backgrou n d

agency,

attractive

c o n n e c tio n s

for

Incorporated 1933

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

OF CANADA

Des Moines, Iowa

F acilities, n o t restriction s

o p e r a tin g

th ro u gh o u t I o w a , h a s s e v ­
eral

S un L ife

BONDING
COMPANY

for

a life in s u r a n c e c a re e r.

T h is

Des Moines

•

P riv ileg es, n o t p r o h ib itio n s

•

agency
b a n k e r s.

This is Iowa’s oldest surety company.

We

h ave

a

fe w

d esirab le

agen cy o p e n in g s in E astern

W rite

Iow a

A

progressive company with experi­

enced, conservative management. W e
are proud of our hundred and fifty
bank agents in Iowa.

E. H . SN O W
G en eral A g e n t

A ETN A
LIF E IN S U R A N C E COM PANY
Third Floor, Hubbell Bldg.
Des Moines

Northwestern Banker

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

September 19!tb

To be the exclusive representative of
this company is an asset to your bank.

W R IT E

W M . R. W ITHERS

•

•

Branch Manager
Write to

820

In su ra n c e
DES

E xchange

B ld g .

M O IN E S , I O W A

E. H. W A R N E R
Secretary and Manager

57

Postwar Traffic is Problem No. 1
OSTWAR traffic problem number
6. Improvement and installation of ization of traffic second, and signs, sig­
one. in the majority opinion of new traffic control equipment, such as, nals and markings third.
the nation’s traffic experts, will be signals, signs and marking.
Both city and state police considered
what the prewar motorist considered
7. Solution of left-turn problems.
pedestrians most important. City po­
his major headache—parking.
8. Street and highway lighting.
lice considered parking second, while
That is the consesus of a survey just
9. Transportation of war plant state police considered speed second.
completed by the National Conserva­ workers.
Speed took third place in the opinions
tion Bureau, accident prevention de­
10. Public transit facilities.
of the city police and redesign was
partment of the Association of Cas­
There were considerable differences third with the state police.
ualty and Surety Executives.
of opinion, depending on the type of
Transit company engineers selected
To determine what principal traffic work in which the authorities were public transit facilities, pedestrians,
problems must be solved so as to ex­ engaged. Thus, city engineers found and parking as their three most im­
pedite safe and efficient motor vehicle- the parking problem of greatest im­ portant items, while the national and
and-pedestrian flow after the war, a portance, with pedestrian control and federal officials placed parking first,
questionnaire listing ten traffic prob­ traffic channelization second and third, redesign second, and the pedestrian
lems was sent recently to a represent­ while state engineers listed redesign problem third.
ative list of motor-vehicle and trans­ of streets and highways first, channel­
Safe and smooth traffic will depend
portation experts in all parts of the
nation by the bureau’s traffic and
transportation division. The experts
were requested to check, in order of
preference, the three traffic headaches
they considered most important.
LOWER INTEREST
Returns were received from 77 cities,
Many bankers are profitably solving these problems for both
48 states, 25 insurance companies, 20
the bank and the client through the personalized financial
federal and national organizations, 13
planning service of
transit companies, and 62 other traffic
engineers and officials. Replies re­
IOWA'S OLDEST LIFE INSURANCE COMPANY
vealed that the following problems
May we give you the details?
were considered most urgent:
1. Parking.
2. Pedestrian control and safety.
3.
Redesign of streets and high­
GENERAL AGENT
ways.
Equitable Life Insurance Co. of Iowa
4.
Channelization of motor vehicle
419 Equitable Building
DES MOINES, IOWA
traffic.
5. Control of speed.

P

II 11||| [ |i fAI [S

F R A N K L . M e C O R M IC K

The HOME FLEET

Special Agents

EXTENDS GREETINGS

C. D. Wherry

to m e m b e r s o f th e

R. S. Ingham
K. L. Lilja

Iowa Bankers Association

The
Connecticut Mutual
Life Insurance
Company

T. R. McDonald
H. A. Karr

(Since 1846)

Lawrence Radcliffe
TH E H OM E FLEET
C. S. Cathcart

E. H. Davis
A. N. Beim

Martin E. Aegerter

Art E. Holm

Earl Van Steenberg

L. J. Wherry

W m . D. Gehringer

R. J. Muggee

'W

★

Hartford Fire Insurance Co.
Citizens Insurance Co.

Eastern Iowa Agency

1 2 0 1 Des M oines B ldg.

401 Old Colony Bldg.

D E S M O IN E S

DES MOINES

1112 Davenport Bank Building
Davenport, Iowa

*Rav D. Ashton

* Carroll Thornburg

In U . S . Arm ed Forces


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

PAUL C. OTTO
G e n e ra l A g e n t

Northwestern Banker September

58
largely on the work of the small but
highly skilled group of traffic engi­
neers, a majority of whom are mem
bers of the Institute of Traffic Engi­
neers and who specialize in “ That
phase of traffic engineering which
deals with the planning and geometric
design of streets, highways, and abut-

MIDSTATE UNDERWRITERS, Inc.
Fire Insurance General Agents
DENMAN KOUNTZE

N. N. KEMMLER

CLAIR E. WILSON
CHAS. R. HOLOUBEK
1909 Harney Street
Omaha, Nebraska

AT 7202

Complete Facilities for Handling Fire, Auto
and Marine Insurance for Local Agents in
Iow a and Nebraska
WRITE FOR PARTICULARS

ting lands, and with the traffic opera­
tion thereon; as their use is related to
the safe, convenient, and economic
transportation of persons and goods.”
The questionnaire reveals that these
experts are already planning to do all
in their power to avoid return to the
inadequate traffic facilities and haz­
ardous conditions which were so prev­
alent in many areas in the past.

A Fair Test
Rarely does the public have an op­
portunity to compare the relative mer­
its of government versus private oper­
ation of industry, unclouded by preju­
diced arguments and accidents of cir­
cumstance which make impartial com­
parison difficult. But it has such an
opportunity in the case of the railroad
industry. It is worth repeating that
in the First World War the railroads
were operated by the government.

BU SY BANKERS
Like the friendly, accommodating Service of the
National Fire Group (Iowa Service Office)
W ILL H. H ARR ISO N , S tate A g e n t
W . K. H AN KIN SO N

RALPH E. RINARD

A . A . IN G RAM

C o n v en ien t S u p p lies— In tellig en t S ervice
W rite fo r A g e n c y C on tra ct

During the current world war, they
have continued as a private enterprise.
The periods of respective operation
have been under similar circum­
stances. Therefore, the public can base
its judgment upon performance alone.
During the first war, operation of the
railroads by the government was in­
efficient and wasteful. A news dis­
patch of May 25, 1919, says: “To fi­
nance the railroads for the balance of
the year and to pay the government’s
operating loss for 16 months up to this
month, an appropriation of $1,200,000,000 was asked of Congress recently by
the Director General of the United
States Railroad Administration. The
$1,200^,000,000 is in addition to the $500,000.000 appropriated by the last Con­
gress.
During the present war the railroads
have paid billions in taxes to the gov­
ernment, instead of creating Federal
deficits—nearly $2,000,000.000 in the
year 1943 alone. Aside from their tax
contribution to victory, they have car­
ried the unprecedented transportation
load of mechanized warfare without a
hitch.
An immediate question after the war
will be whether or not socialized indus­
try in the United States shall displace
the enterprise of the private citizen.
In the railroad industry, public owner­
ship and private ownership have had a
fair test. That test should be a deter­
mining factor in the final choice of the
road America follows.

606 Old Colony Building, Des Moines 9, Iowa
(Two Blocks North of Fort Des Moines Hotel)

We Specialize in

BANKERS BLANKET

and
FORGERY BONOS
Your Inquiries Invited

The Estate
Planner
processes the raw material of
life insurance and other assets
into a program assuring maxi­
mum safe income for client and
client's family.

AU in or Out
Gal: “ I’m all worn out trying to get
into this evening gown.”
Guy: “You don’t look all in.”
Gal: “ Omigosh!!! Where?”

SIN C E
19 19

A banking background is help­
ful in mastering this specialized
work. For information on open­
ings, for full time agent or brok­
erage basis, address
CHARLES M. MAXWELL

WITMER-KAUFFMAN
EVANS CO.
(Established 1892)
410 Equitable Bldg.
Des Moines

Northwestern Banker September 19bb

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

640 Des Moines Building
Des Moines
Telephone 3-7644
Iowa State Manager
Connecticut General
Life Insurance Company
Hartford, Connecticut

Hawkeye Mutual Hail
Insurance A sso c ia tio n
Carver Bldg.

Fort Dodge, Iowa

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

59

in bank
accounting machine
developments
BURROUGHS

Burroughs developed the first bonk posing
machine, thereby satisfying an important
bank need. Improved machines and new

F I R S T

features have constantly been developed

INTRODUCED

to meet new requirements, and to speed up
the efficient handling of checking account

Electric Operation

records. Today, as always, Burroughs

Motor-Returned Carriage

bank accounting machines are beyond
comparison . . . are in universal use.

Keyboard Calendar Feature
Year Dates

Burroughs anticipates bank needs— and
develops suitable machine improvements.

Automatic Check Count

Continuous association with the banking
business . . . plus the close cooperation

Front-Feed Carriage
Full-Width Journal

of bankers . . . makes this progressive
policy practicable.

Automatic Balances •
Overdraft Lock

Only the leader can work in this w ay; only
in this way can leadership be maintained.
In the future— just as in the past—
Burroughs will lead.

Burroughs
IN M A C H I N E S
IN C O U N S E L
IN S E R V I C E

•

NATIONWIDE MAINTENANCE SERVICE

•

BUSINESS MACHINE SUPPLIES

Northwestern Banker September 19bb

60

rf-rUettaLt . . .
MODERNIZATION
NEW LOW TYPE BANK COUNTERS BY

I e

H e b u r e

C O R P O R A T I ON

Compact —

Uniform

Faster —

Modern

H e r e are th e m o d e r n lo w -ty p e “ F R I E N D ­
L Y ” C ou n ters w h ic h p r o v id e fo r a d d itio n a l
tellers and en cou rage a fr ie n d lie r re la tio n ­
sh ip b etw een b a n k an d cu sto m er.
n ow is the tim e fo r b a n k s to

R ig h t

investigate

th e n ew lo w -ty p e cou n ters to re p la c e o ld
h ig h

b a rred

cages.

C on su lt

LeF E B U R E

C o rp o ra tio n fo r e x p ert assistance in m a k in g
y o u r r e m o d e lin g p lan s.

AFTER MODERNIZATION

S H O W IN G N E W L O W -T Y P E
F R IE N D L Y C O U N T E R S

★

Never The Appearance
Of A Vacant Cage
L eF E B U R E
p ro v id e

L o w -T y p e F r ie n d ly C ou n ters

co n ven ien t

a cco m m o d a tio n s

fo r

m o r e tellers w ith o u t in creasin g th e floor
space fo r m e r ly o c c u p ie d b y fe w er tellers.
T h e p u rp o se o f th ese n ew lo w -ty p e co u n ­
ters is tw o -fo ld

. . . first, to attain c o m ­

p a ct u n ifo r m ity , and secon d to b rin g th e
b a n k into th e o p e n w h ere cu stom ers m a y
discover

th at

it

is

m ade

up

of

hum an

b ein gs in ten t on ren d erin g fr ie n d ly service.

AFTER MODERNIZATION A

S H O W I N G T E L L E R S U N IT S B A C K O F
L O W -T Y P E F R IE N D L Y C O U N T E R S

The LeFEBURE Corporation will be represented at the Iowa
State Bankers War-work Conference in Des Moines on Septem­
ber 3 and 4 at Hotel Fort Des Moines.

Ie F e b u r e C


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

orporation

Manufacturers
CEDAR RAPIDS, IOWA, U.S.A.
September 7,944

61

Bank Credit for Every Good Borrower
This Is the Goal of the Postwar Small Business
Credit Commission
VERY competent man, firm and
corporation that needs bank cred­
it for some constructive purpose
will get it. And for adequate amounts
and for sufficient length of time to do
the job.
This is the dynamic credit policy
adopted by the Postwar Small Busi­
ness Credit Commission of the Ameri­
can Bankers Association in mobilizing
the nation’s 15,000 banks behind a

E

new and forward-looking program that
will assure adequate bank credit to
meet the needs of small business in
the reconversion and postwar periods,
it was revealed by Robert M. Hanes,
chairman of the commission and for­
mer president of the American Bank­
ers Association.
“Every competent individual, firm
or corporation in the United States
that needs bank credit will get it if

A T T E N D IN G T H E A . B. A . P O S T W A R S M A L L B U S I N E S S
From left to right— F irst R ow :
W . J. Bramman, executive vice president, M ississippi V a l­
ley Trust Company, St. Louis, M issouri; W . S. Aschenbrener,
vice president, Am erican B ank and Trust Company, Racine,
W iscon sin ; M . L. Breidenthal, president, Security N ational
Bank, K ansas City, K a n sa s; H. B. M cDow ell, president, M c ­
Dowell N ational Bank, Sharon, P en n sylvan ia; W a lte r B.
French, deputy manager, Am erican Bankers A ssociation;
Robert M . Hanes, president, W ach ovia Bank and Trust Com­
pany, W inston -Salem , North Carolina; A . Lee M . W iggins,
president, Am erican Bankers A ssociation ; H. Lane Young,
president, The Citizens and Southern N ational Bank, A t ­
lanta, G eorgia; Fred C. Forrest, president, First N ational
Bank, Pullman, W ash in gton ; W illia m J. George, president,
First N ational Bank in Merced, Merced, California.
Second R ow :
Robert W . Kneebone, Am erican Bankers Association, Chi­
cago Office; G. H. N esbit, president, First N ation al Bank and
Trust Company, Fargo, North D akota; Frank W . Sutton, Jr.,
president, First N ational Bank, Toms R iver, N ew Jersey;
R. H. Dickenhorst, president, F irst State Bank, M orrilton,
A rk an sas; Norfleet Turner, president, The F irst N ational
Bank of M em phis, Memphis, Tennessee; H ayes Picklesimer,
executive vice president, K anaw ha V alley Bank, Charleston,
W e st V irg in ia ; D avid C. Barry, senior vice president, L in ­
coln-Alliance Bank and Trust Company, Rochester, N ew
Y o r k ; E. R. M uir, president, Louisville Trust Company,
L ouisville, K e n tu ck y ; Fred F. Florence, president, Republic
N ation al Bank, Dallas, T exas; A . J. Gock, vice chairman


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

C R E D IT

the money is to be used for some con­
structive purpose that will serve the
private enterprise economy of this
country,” declared Mr. Hanes. “ If
the individual banks cannot grant the
credit, we as bankers pledge ourselves
to stay with him and see that he gets
the money from some other bank or
group of banks.
“ It should be clearly understood,
however,” continued Mr. Hanes, “that

C O M M IS S IO N

CONFERENCE

of the board, Bank of Am erica N . T. and S, A ., Los Angeles,
C alifornia; B. P. Allen, president, F irst N ational Bank,
W abash, Indiana; M . H . Glover, vice president, H artford
N ational Bank and Trust Company, H artford , Connecticut;
Leon A . Dodge, president, The First N ational Bank, Damariscotta, M ain e; Eugene Fish, vice president and cashier,
R oyall N ational Bank, Palestine, T exas; R a y R. Ridge, vice
president, Omaha N ational Bank, Omaha, N ebrask a; J. E.
Drew, deput manager, Am erican Bankers Association.
Third Row :
A nthony G. Felix, vice president, The P ennsylvania Com­
pany for Insurance on Lives and Granting Annuities,
Philadelphia, P ennsylvania; W illia m Sheperdson, staff direc­
tor of Am erican Bankers Association P ost-W a r Small B usi­
ness Credit Commission; George E. Lew is, president, The
Lewis State Bank, Tallahassee, F lorida; R. B. Patton,
executive vice president, Am erican Exchange Bank, Henryetta, Oklahom a; H. H . A ugustine, president, State-Planters
Bank and Trust Company, Richmond, V irg in ia ; Frank C.
W elch, president, The Peoples Savings Bank, Cedar Rapids,
Io w a ; Francis H . Beam , vice president, The N ational City
Bank of Cleveland, Cleveland, Ohio; J. N . Thomson, vice
president and cashier, Bank of Centerville, Centerville, South
D a kota; E. D. Reese, president, The Park N ational Bank,
New ark, Ohio; H . P. Burdette, president, First N ational
Bank, M L A iry , M arylan d ; W ad e Cooper, vice president,
Lubbock N ational Bank, Lubbock, T exas; T. L . Evans, presi­
dent, Guaranty Bank and Trust Company, L a fa y ette , L ouisi­
ana; A . W . Kincade, president, Fourth N ational Bank in
W ich ita, W ich ita , Kansas.

Northwestern Banker

September 1944

62
this does not mean that banking is
embarking upon a program of making
reckless loans. Such loans are of no
benefit to the borrower, the bank or
the community. Nor should it be con­
strued that banks have not been mak­
ing loans and providing ample credit
for small businessmen of character
and ability. They have been doing it
for years. In 1940, the last full year
of peacetime business operation, the
banks of the country made more than
24 million loans, the average new loan
being approximately $1,700.”
A Hundred Billion fo r Credit

A survey of postwar credit needs
made recently by members of the

Commission in their own districts,
clearly reveals that the major share
of the credit required will be provided
by the banking system itself. “Never
before have the banks of this country
had such a tremendous storehouse of
credit with which to serve the multi­
ple needs of postwar business, indus­
try and agriculture as they have to­
day,” declared Mr. Hanes. “The de­
posit structure is now far in excess
of one hundred billion dollars, a vol­
ume of funds adequate to finance the
credit needs of postwar America. This
credit will be released just as soon as
the economic condition of the country
permits and government regulations

Greetings to the
Iowa Bankers Association
COM PLETE
IN V E S T M E N T
SERVICE

VIETH, DUNCAN & WOOD
MUNICIPAL BONDS
W a lte r E . Y ie t h

A . M . M a c L a u g lilin

Davenport Bank Bldg.
Phone 2-5379 Teletype Dvpt. 93
Davenport, Iowa

JAM ES C. SHAW

O w e n p. M c D e r m o t t

S h aw, M cDermott & o.
Q

Investment Securities

Suitable for Investment of Banks,
Institutions and Trust Funds

Phone 3-6119

914 Liberty Bldg.
DES

MO INE S

Northwestern Banker September 19'ib


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

9,

I O W A

restricting the extension of credit in
many lines of activity as a precaution
against inflation are lifted.
“The members of the Postwar Small
Business Credit Commission,” said Mr.
Hanes, “are determined to see that
this great credit reservoir is used for
productive purposes to facilitate the
conversion of business and industry
from war to peacetime production, to
revitalize the many segments of small
business adversely affected by war­
time restrictions, and to provide the
financial encouragement and strength
to business, industry, agriculture and
the professions that will create maxi­
mum postwar employment, particu­
larly for returning war veterans.
Correspondent Connection
Desirable
“In doing this,” he added, “the en­
tire machinery of the American bank­
ing system will be utilized to the full­
est extent. Correspondent banks will
play an important part. Where a local
bank cannot extend either part or all
of the credit needed, it will be encour­
aged to use its correspondent banks to
see that the money is made available
or an attempt is made to make the ap­
plication suitable for bank considera­
tion. These correspondent relation­
ships have long enabled the American
banking system to serve efficiently the
commercial life of the nation. The
war demonstrated how effectively they
can operate in assuring the rapid and
smooth flow of credit to those com­
munities where local credit was not
available in sufficient amounts for the
conversion of local industrry to Avar
production.
“This happy relationship betAAeen
banks will enable the smaller banks
to serve adequately the credit needs
of their communities and at the same
time preserve independence of nolicy
and action in their O A v n territories.
Small business Avili be the chief bene­
ficiary of the experience, skill, fa­
cilities and resources that ha\’e been
developed over a long period of years
by this cooperation between banks.”

While most of the postwar demands
will be met by individual banks either
directly or in cooperation with other
banks the Commission recognized that
there may be instances where banks,
because of limited resources, unfamil­
iarity with the type of credit desired,
or barred by legal lending limits or the
terms and conditions requested, may
be unable to provide the credit needed.
It therefore considered various plans
for meeting such situations and de­
termined that the voluntary partici­
pation regional bank credit group
was the most feasible type of organ­
ization that could be utilized to per­
form this function.
Such groups will be strictly volun-

63
tary in character, regional in opera­
tion and management. They will be
started when and where local banks
feel a need for such an auxiliary or
supplementary source of credit. The
Postwar Small Business Credit Com­
mission will have no voice in their or­
ganization or management. It will,
however, act as a clearing house for
information to groups contemplating
such action. Several such groups are
already being considered by bankers
in widely separated parts of the coun­
try, according to reports made at the
commission meeting.

Long-Term Loans
The term loan principle will be
adapted to the needs of small busi­
ness, according to commission’s plans.
This effective lending mechanism was
developed extensively by banking dur­
ing the past ten years. In 1938 com­
mercial banks made term loans
amounting to 217 million dollars. By
the close of 1940, however, the amount
of term loans held by banks reached
the impressive total of two billion
one hundred sixty-two million dollars.
More than 3,000 banks at that time
were engaged in making loans of this
type. The war comes as a dividing
line between this peacetime activity
in the use of term loans and the post­
war application. While in the peace­
time they were used mainly for larger
enterprises, banks are now preparing
to apply this constructive lending prac­
tice to small business so that it, too,
may enjoy every new type of credit
provided by American banks.
Banks throughout the country, ac­
cording to reports made at the com­

mission meeting, are already establish­
ing small business loan departments
or units under similar names. The
creation of such special departments
or committees, it was believed, indi­
cates the growing volume of small
business loans being made by banks
and banking’s desire to see that the
varied needs of this type of enterprise
receive specialized and expert atten­
tion.

should suggest something to industry.
For instance, what has CIO to sell
the people that employing industry
has not? After it is all said and done,
industry provides the jobs for the
workers. Without private industry,
there would be no need for unions
and thousands of well paid union of­
ficials. Totalitarian countries do not
tolerate labor unions. You don’t strike
under a Hitler or a Mussolini unless
you wish to face a firing squad.
If labor is wise, it will do nothing
to undermine the future of private en­
terprise. And if industry is wise, it
will be aggressive in seeing that its

An Opportunity for Industry
The CIO political action committee,
with its instructions to canvassers to
call on every home in a given area,

S

o u

n

d

s

S

e

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s

o

n

e

d

SHORT T*:KM INVESTMENTS
☆

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Consolidated collateral trust debentures of
the Federal intermediate credit banks,
joint and several obligations of these in­
stitutions, are issued under authority of
the Federal Farm Loan Act, as amended.
T he D e b e n tu re s are leg a l in v estm en t fo r trust fu n ds,
insurance companies and savings banks in New York
and other States. They are eligible to secure all fiduciary,
trust and public funds under authority or control of

S p e c ia liz in g in

officers o f the United States. They are approved security

BOND

for deposits o f postal savings funds.

REQUIREMENTS

Maturities to six months may be purchased by the Federal
reserve banks and are acceptable by them as collateral
for fifteen day loans to member banks. Denominations o f

for

$5,000, $10,000, $50,000, $100,000, maturing in three to

Investment Bankers

twelve months, are offered periodically through recog­

■ ■ ■

nized dealers and dealer banks at current market rates.

WILLIS

THE FEDERAL INTERMEDIATE CREDIT BANKS

and

MOORE

SPRINGFIELD, MASS.

General Insurance

LOUISVILLE, KY.

BALTIMORE, MD.

NEW ORLEANS, LA.

COLUMBIA, S. C.

ST. LOUIS, MO.

ST. PAUL, MINN.

HOUSTON, TEX.

OMAHA, NEB.

BERKELEY, CAL.

WICHITA, KAN.

SPOKANE, WASH.

201 Liberty Bldg., Des Moines
F u rth er in form a tion rega rd in g the D eb en tu res m ay b e o b ta in ed fr o m

GENERAL AGENTS

FOR

C H A R L E S R . D U N N , Fiscal Agent

31 Nassau Street, New Y ork 5

C O N T IN E N T A L
CASUALTY


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Federal Reserve Bank of St. Louis

COM PANY

N orth w estern B anker

S ep tem ber Î9 44

64
story is told in every possible way to
every citizen. Free labor and free en­
terprise can only rise or fall together,
an it is foolish for either to do any­
thing that destroys the other.

Iowa Investment Bankers
Field Day
The annual Field Day of the Iowa
Investment Bankers Association will
be held on Thursday, September 28th,
according to an announcement by
James C. Shaw, president of the Asso­
ciation. The event will be staged at
the Wakonda Club, in Des Moines.

Elected a Director
Lawrence F. Stern, president of the
American National Bank and Trust
Company of Chicago, has been elected
a director of the Brunswick-BalkeCollender Company.

Association Vice President Roy Leriche says the usual luncheon will
precede an afternoon of golf or other
sports, with the annual dinner in the

MUNICIPAL BONDS
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and
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evening. Invitations will be mailed
to investment bankers in other cities,
among them Omaha, Chicago, the Twin
Cities, St. Louis, Kansas City, and
New York.
Sherman Fowler, assistant vice pres­
ident of the Iowa-Des Moines National
Bank, is in charge of reservations.

Independence vs. Handouts,
Desired
Stating that “ subsidies are now
firmly fixed upon our economic life
as a national policy,” Fred H. Sexauer,
president of the Dairymen’s League
Cooperative Association, said:
“We as farmers can still oppose
them as a national policy and work
to change the policy. But in formu­
lating plans to obtain adequate re­
turns, subsidies, now being a national
policy, must be considered part of such
return. This does not mean that subidies are a sound national policy. We
know the bad effect of subsidies upon
the milk industry, but until they are
abolished we must use them.”
Most farmers believe that goods and
services, including farm products,
should be paid for at a fair price by
consumers, and agricultural subsidies
avoided in order to maintain a high
national income, amortize the war debt
and reduce taxes.

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Des Moines, Iowa

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Northwestern Banker September 19^^


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Federal Reserve Bank of St. Louis

M in n e a p o lis

2 0 0 E quitable B ld g ., P h. 4 -7 1 5 9

B o s to n
M olin e

Des M o in e s, Iow a

A. T. T. DM 184

65

How Some Cities Dodge Taxes
in Louisville, Kentucky, an
effort will be made to eliminate
DOWN
the private electric company and
substitute municipal ownership, re­
gardless of the fact that the local com­
pany, owned by many private invest­
ors, does not want to quit business.
This is in line with the current politi­
cal program that is being pushed to
socialize the electric power industry of
the United States.
In Louisville, the local government
is so framed that the board of aidermen can consummate the deal involv­
ing some $85,000',000, without a vote of
the people. That is a startling situa­
tion.
One of the arguments for “ liquidat­
ing” the private company is that a mu­
nicipal plant would encourage industry
to locate in Louisville. This is an as­
sumption difficult to prove or disprove.
Another reason given is the perilous
state of city revenues and the urgent
need to find new sources of income to
enable the municipal government to
meet its minimum obligations in pub­
lic education, welfare, health and safe­
ty.
Political management of the city
which brought on this perilous state of
municipal finances, eyes with envy a
private electric company that is mak­
ing money. It “promises” the people
reduced rates, which would probably
eliminate the profit that the city now

but by tax dodging and cutting returns
on hard earned savings, they would
have it appear that the municipal en­
terprise was “making money.”
Altogether it is a sad proceeding to
see an American city using its political
power to force private citizens out of
business, and boast of dodging $3,450,000 taxes to the Federal government,
which are immediately loaded onto the
backs of other taxpayers.
(Turn to page 66, please)

covets. But to offset that the city
would, under present laws, be ex­
empted from paying the $3,450,000 Fed­
eral income taxes which the private
company paid last year. Also, the city
could borrow money cheaper, thereby
greatly reducing the return on private
savings now paid to thousands of in­
vestors. The promoters of the cityowned plant do not say to what extent
local tax budgets would suffer losses,

STOCKS and BONDS
Full Information and Markets
to all Banks and their Custom­
ers on Listed or Unlisted
Stocks and Bonds.
Municipal, Public Utility, Industrial, Railroad

Murdoch, Dearth & White
Incorporated
M . D . D e a r th , P r e s id e n t*

R o b t. H. M c C r a r y , V ic e

T . J. L a n d s t o r f e r , S e c r e t a r y

P r e s id e n t

F red M . L oren z, T rea su rer

1000 Des Moines Building
Telephone 4-2291

Teletype DM 91

Des Moines, Iowa
*Active Duty, U. S. Navy

GREETINGS
I

to members of the

Iowa Bankers Association

FHA TITLE II LOANS
a

from

M. Wittenstein &Co.
Dealers in

Securities of
Iowa Corporations and
General Investments.

a

a

Iowa Banks W elcom ed
As Originating Brokers
a

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Insured Loans Purchased
At Prevailing Premium

General Mortgage Corporation
A n A p p ro v e d F H A M ortgagee

Southern Surety Bldg.
Des Moines 9, Iowa


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Federal Reserve Bank of St. Louis

1021 Fleming Bldg., Des Moines, Iowa
Northwestern Banker

September

66

(Continued from page 65)
It is high time to pass state and Fed­
eral legislation compelling a city, when
it enters into commercial activities, to
pay the same Federal, state and local
taxes that are required of private busi­
ness. Using tax funds to absorb un­
justified rate reductions, is a disgrace.
If such practices are to be continued,
laws should be passed granting private
electric companies the same exemp­
tions, thus preventing discrimination
between their customers and those of
a public plant. Tax exemption of mu­
nicipal business permits rebates to fa­
vored customers, which are illegal for
private business.
Big Doings
“Anything happen since I saw you
last?”
“ Lots—I had all my teeth out and
an electric stove and refrigerator put
in.”

W hen The Boys Come Home Again
(Continued from page 14)
particular job he holds. Naturally I
have many ideas to improve the effi­
ciency of the banker’s problems, in
handling personnel and the person­
nel’s efficient manner of handling the
bank’s business.”

"Banks Musi Keep Up Wteh Times"
S/Sgt. Robert E. Gleeson recently
arrived in England, formerly with the
First National Bank, Sioux City, Iowa:
“While I am naturally anxious to re­
turn to my work at home I feel very
fortunate to be able to serve in this
theater of operations. These are a few
of the things I hope to find when that
real DAY arrives.
“After the war I hope to be return­
ing to a United States already suffi­
ciently converted from war to peace
so that the millions of men in uniform

Federal Home Loan Bank of Des Moines
DES MOINES, IOWA
STATEM EN T

O F C O N D IT IO N , A U G U S T

1, 194 4

RESOURCES
CTa s h ■■.................. ....................................................................................................................................................§ 1 ,4 9 8 ,6 5 8 .8 1
U . S . G o v e r n m e n t O b l i g a t i o n s a n d S e c u r i t ie s f u l l y g u a r a n t e e d b y U . S ...............
8 ,0 3 7 ,5 7 1 .5 6
A d v a n c e s t o M e m b e r s ...................................................................................................................................
9 ,2 4 5 ,0 6 2 .2 5
A c c r u e d I n t e r e s t R e c e i v a b l e .............................................................................................................................. ’ 6 9 ,9 8 0 .1 6
D e f e r r e d C h a r g e s a n d O t h e r A s s e t s ................................................................ ....................................
1 6 ,8 3 2 .0 8
F u r n i t u r e a n d E q u i p m e n t ( C o s t $ 1 0 ,3 6 1 .0 6 ) ..................................................................................
’
l.o o
$ 1 8 ,8 6 8 ,1 0 5 .8 6
L IA B IL IT IE S A N D

C A P IT A L

D e p o s it s — M e m b e r s ........................................................................................................................................§ 1 ,2 8 7 ,4 1 4 .7 4
A c c r u e d I n t e r e s t P a y a b l e . ............................................................................................
”
’
6,039194
A c c o u n t s P a y a b l e ...................................................................................................................................
5 4 3 !2 1
* D e b e n t u r e s O u t s t a n d i n g ..............................................................................................................................
5 ,0 0 0 ,0 0 0 .0 0
C a p it a l S t o c k S u b s c r i p t i o n s ...................................................................................................................... 1 1 ,4 3 6 ,8 0 0 .0 0
S u r p lu s :
R e s e r v e s ............................................................................................................................... $ 7 6 8 ,7 7 0 .0 2
U n d i v id e d P r o f i t s ......................................................................................................... 3 6 8 ,5 3 7 .9 5
1 ,1 3 7 ,3 0 7 .9 7
$ 1 8 ,8 6 8 ,1 0 5 .8 6
^ P a r t i c i p a t i o n i n $ 5 8 ,0 0 0 ,0 0 0 C o n s o li d a t e d F e d e r a l H o m e : L o a n B a n k D e b e n t u r e s o u t s t a n d i n g ,
w h ic h a r e th e jo in t a n d s e v e r a l o b lig a t io n s o f th e t w e lv e F e d e ra l H o m e L o a n B a n k s .

will find good jobs awaiting them
rather than unemployment checks or
another W.P.A. This is unquestion­
ably the most important single prob­
lem facing America and I trust that
you people at home will lick it the
same way you have licked all the pro­
duction and supply problems during
the war. I hope the business men
will take a more active part in local
and national government so that we
may return to a sounder fiscal policy
than has prevailed for so long and
really begin to retire the huge debt
the war has forced upon us. I hope
this struggle will have taught the peo­
ple that today’s world is too small for
us to live apart and that we must pre­
pare to do business with the other na­
tions and at the same time retain a
compulsory military training program
for the young men of the country.
“ I believe banking in the years
ahead will be a healthy, profitable
business if the bankers are willing to
devote the required time and money
toward keeping their institutions
apace with the ever changing condi­
tions. By this I mean that bankers
must continue to alter their policies
whenever necessary so that they may
take full advantage of the installment
financing field; they must be increas­
ingly aggressive in meeting the com­
petition of any governmentally fi­
nanced agencies and they must realize
the profit to be obtained in the financ(Turn to page 68, please)

Investment Management
for

Individual. Estate
and

STATE

MUNICIPAL

Institutional
Accounts

and

REVENUE BONDS
B A L L A R D - H A S S E T T C O MP A N Y
312 V alley Bank Building

Des Moines, Iowa

«I. C. Eiiyari
Insurance Exchange Building
Des Moines, Iowa

Northwestern Banker

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

September

67

W

h a t e v e r

c

o u

A

n

y

N

w

e e d

h

e

i n

r

B

a n k i n g

e

hundred and thirty-two years o f experience in domestic

/ A N E
V > /

Y

banking — through 6 major w ars- along with experience

in operating branches abroad for 3 0 years, equip National City
to help American banking and industry in planning post-war
reconversion and expansion here and abroad.
National City was the first to enter the overseas field; a
leader in offering small loans to individuals and little businesses;
and in adapting banking to changing conditions.
W ith its long background of practical banking knowledge,
plus the advantages of close association with correspondent
banks throughout the world, National City today is serving
many o f the country’s largest industries as well as hundreds o f
thousands o f individuals and small businesses.
i

In addition, all National City branches offer the

i
S

services o f the City Bank Farmers Trust Com pany —
chartered in 1 8 2 2 . It conducts only a trust business—
the care and management of the property o f its clients.

»i

THE NATIONAL CITY BANK OF N E W YORK
Head Office

55 WALL STREET

•

New York

•

C I T Y B A N K FARMERS T R U S T C O M P A N Y
Head Office
U p t o w n O ffic e :

*

22

WILLIAM STREET

M ad ison Avenue at 4 2 n d Street

•

New York

B r o o k ly n O ffic e :

181 M ontague Street

Information may also be obtained through any branch of The National City Bank of New York
M e m b e r s F ed era l D e p o s it In su r a n c e C o rp o r a tio n

--------------------------------- A c t i v e O v e r s e a s B r a n c h e s o f T he N a tio n a l C ity B a n k o f N e w Y o r k ----------------------------------A R G EN TIN A

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Federal Reserve Bank of St. Louis

?Cuatro
avanarCaminos
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Santiago
Valparaiso

Galiano
( H a va n a )
La Lonja
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Caibarien
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Montevideo
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Caracas

Northwestern Banker

September 19^

68

(Continued from page 66)
ing of the construction of modern
homes both to themselves and to their
communities as a whole. The bankers
must plan for the future of their in­
stitutions by encouraging young men

to enter the banking field. This can
probably best be accomplished by rais­
ing the level of salaries of those em­
ployees below the rank of officer so
that there will be a reserve of good
material for future positions of re-

sponsibility.
“ I have complete confidence that the
banking business will meet every
challenge presented to it and I very
definitely expect to return to it.”

"With Some Corrections"
Pvt. R. Ij. Kilgore, Buckley Field,

Denver, Colorado, on leave of absence
as assistant cashier of the National
Bank of Waterloo, Iowa: “ I wish to as­
sure one and all that I expect to con­
tinue in the banking business after
the war is over, in fact I am looking
forward to returning to my desk in
one of the best banks in the state of
Iowa, The National Bank of Waterloo.
“ In the many discussions with fel­
low-soldiers, I find them all like my­
self, wanting to return to civilian life
and to find it much as we left it, with
some corrections. All of us would
like to see a better understanding be­
tween labor and capital in that we feel
that both must learn to respect the
rights of the other. We also feel that
it will be necessary for our govern­
ment to eliminate all the useless bu­
reaus and red tape which now affect
everyone and to return to the people
the rights and liberties which they
generously have surrendered in order
to hasten victory.
“ It seems to me that the banks, by
their competent handling of war bond
sales, ration banking and the aiding
in financing of war contracts, have in­
sured for themselves a definite future
and that the banks, as a whole, will
see a prosperous period at the close of
the war.”

Q U A I L & CO.
Investment Securities
Davenport Bank Building
Davenport, Iowa
M em b er Chicago Stock Exchange

Prospectus on request from Principal Underwriter

INVESTORS SYNDICATE
M IN N E A P O L IS , M IN N E S O T A
REPRESENTATIVES

IN

THE

PRINCIPAL

CITIES

OF

THE

UNITED

STATES

"To Freedom of Enterprise"
Pvt. Charles K. Grochala, Fort Mon­

r

medium-sized New York bank, where
every correspondent’s needs receive the time
and attention of officers to an unusual degree.
F rederick E. H asler

Jam es A. Jackson

Chairman of the Board

President

mouth, New Jersey, formerly with the
Valley Savings Bank, Des Moines,
Iowa: “My hopes are to return to a
United States which will have the
quiet and peaceful attitude compar­
able to that which it had in the years
previous to the war. One in which
all threats of future wars will be
erased. Also to have the freedom of
business enterprise that will allow the
modern businessman full use of his
initiative to better himself without
government interference.
“ I hope postwar banking will con­
tinue to be as good as banking has
been in the past. I plan to continue
in the banking business.”

"Conscious of World Cooperation"

The CONTINENTAL
B A N K

&

T R U S T

C O M P A N Y

o f NEW YORK
30 BROAD STREET, NEW YORK
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
Northwestern Banker

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

September

Major A. Emsley Chittenden, In­
fantry, China - Burma - India Sector,
former member of the First National
Bank, Lincoln, Nebraska: “After the
war I want to come back to a United
States that has planned a future for
men in the armed forces. By this I
mean a release from the armed forces
as employment is made available. All
men desire to be released from regi-

69

W H EN THE BO YS C O M E H O M E A G A I N . . . .
mentation, which we in a democracy
feel is only necessary in time of war.
Therefore, this will necessitate a local
and national inventory of jobs avail­
able and placing the man in the prop­
er job. The soldier is proud of his
country and has gone through a lot to
save democracy from dictatorship. It
is now up to the civilians to win the
peace, by having employment made
available for these returning men.
“There should be a government set­
up operated on an economical basis.
This calls for a definite plan for
liquidation of the national debt. It
also calls for thrift in government op­
eration. The soldier is risking his life
for what he believes to be right and
he expects his representative in gov­
ernment to fight for what they think
right and honest. He dislikes filibus­
tering for political and personal gains.
“ It should be a country conscious
of world cooperation. We can benefit
greatly through international trade,
our products are in demand through­
out the world. We can help raise the
standard of living for other countries
while we are raising our own. An
isolationists viewpoint is fatal. We
must retain a larger standing army,
larger than we had at the beginning
of this war. We must always be ready
to back up our beliefs and not have
to give ground because we are unpre­
pared.
“ In my opinion banking has a very
prosperous future. Probably more
profitable than any period we have
seen in the last decade. The reasons
being fewer banks, large deposits, and
and an era of prosperity in the offing.
There will be a demand for large com­
mercial loans and small personal
loans. Money will become dear and
interest rates should rise.
“Operating expenses in most cases
are now trying to be met through
service charges. This will be retained,
for people have been educated to the
necessity of banking facilities. Large
demands for money meaning better in­
terest rates, bring larger incomes to

banks and will mean larger salaries
and dividends to the employe and
stockholders.
“The banks will undoubtedly retain
the personal loan branch, it is through
this that the banking field is de­
veloped. The small borrower of today
may be the large businessman of to­
morrow. Early contacts and satisfac­
tory service rendered builds the banks
clientele. This branch has held many
customers during depression years
and will continue to hold and bring
new customers in the future.
“Expansion and reconversion of
business after the war will mean a
greater demand for money. There­
fore, I foresee a demand for long and
short term commercial loans with an
increase in interest rates. The gov­
ernment will try to hold interest rates
down especially as long as it continues
to borrow. But eventually the in­
crease in demand for money will force
interest rates to rise.
“Banking is the field which I have
chosen for my career. In my opinion
the future for banking as a business
is excellent and I plan on returning to
it after the war.”
T. IV. Richards, QM 1/c, APO New
York, who was formerly a teller with
the Northwest Security National Bank,
Sioux Falls, South Dakota: “Over here
a great deal of what thinking we do
is devoted to what kind of a United

THOMAS L. CRÂBBE
& COMPAQ
Investment Securities
Merchants Bank Bldg.
CEDAR RAPIDS, IOWA
★

SECURITIES OF
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DAVENPORT, IO W A

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Federal Reserve Bank of St. Louis

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W e solicit the investment
— T ru st Funds
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States we want to come back to after
the war. One of my greatest hopes
is for a country that is free of the in­
ternal strife between labor and man­
agement. This is a problem which will
(Turn to page 73, please)

T rust F unds.

R egid ar Sem i-

A ccounts here legal fo r

Send fo r Statem ent and In fo rm a tio n .

Danielson Federal Savings and Loan Association
84 M a i n

S treet

P h o n e 377

D a n ie ls o n , C o n n .

A s s e t s O v e r $ 6 ,0 0 0 ,0 0 0 .0 0

Northwestern Banker

September 19^^

70

USE

N O R T H W E S T E R N ’S

COLLECTION SERVICE
FAST - PERSONAL - COMPLETE

WHY USE NORTHWESTERN'S COLLECTION SERVICE?
THAT'S A FAIR QUESTION. AND HERE ARE A FEW
ANSWERS.
The items you send us are all given personal attention.
Personal presentation is made of items inside the Minneapolis loop.
Telephone and written notices are given on all items outside the loop.
Should some item not be immediately collectible, you are kept in­
formed of the progress that is being made.
Remittance or credit is made to you on the day of payment.
Your instructions are carefully adhered to.
You have at your service, through Northwestern, a nation-wide collec­
tion service with correspondents in principal cities.
Your items are immediately acknowledged upon receipt.
BUT — THE BEST ANSWER OF ALL TO YOUR QUESTION CAN
BE GIVEN IF YOU TRY NORTHWESTERN’S COLLECTION SERV­
ICE. YOU WILL FIND IT FAST — PERSONAL — COMPLETE. WE
ARE NO FURTHER FROM YOU THAN YOUR TELEPHONE, TELE­
GRAPH OR TYPEWRITER.

D epartm ent of Banks and Bankers
Shirley S. Ford

Wm. N. Johnson

P resid en t

Vice P resid en t

D. E. Crouley

L. P. Gisvold

A. F. Junge

Asst. C ash ier

R e p re se n ta tiv e

Asst.

V ice

P res.

NORTHW ESTERN
OF

F. W. Conrad
Asst.

Northwestern Banker

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

September 19kk

FEDERAL

MINNEAPOLIS

DEPOSIT

P res.

NATIONAL BANK

Marquette Avenue — 6th to 7th Streets

MEMBER

Vice

INSURANCE

CORPORATION

71
in widening the institute’s influence in
banking through better trained per­
sonnel.
Other speakers included W. F. Mc­
Lean, Duluth, president of the Minne­
sota Bankers Association, and William
Duncan, Jr., M.B.A. secretary. S. J.
Kryzsko, Winona, A.I.B. executive
councilman, presided.

M IN N E S O T A
NEW S
W IL B U R F. M cL E A N
P r e s id e n t
D u lu t h

Summer Meeting
W IL L IA M D U N CA N ,
S ecreta ry
M in n e a p o l is

Jr.

A . I . B . Five-State Meeting
m e r ic a n

i n s t i t u t e

of

A BANKING chapter and study
group leaders from five midwest states
met in Minneapolis recently to formu­
late plans for speeding up in their
respective communities the institute’s
streamlined wartime program.
Some 90 persons from A.I.B. chap­
ters in Minnesota, Iowa, Wisconsin,
North and South Dakota attended the
one-day session. The morning meet­
ing included five talks explaining the
institute’s educational setup. Speak­
ers were Pierre N. Hauser, Milwaukee,
who outlined the wartime educational
program; Dorothy Goth, St. Paul, who
told of public speaking and debate
activities; Robert C. Rutherford, exec­
utive secretary of the Minneapolis
chapter, who described job training

courses; Anthony J. Deniger, Milwau­
kee, who spoke on the chapter forum
and seminar program, and Carleton C.
Van Dyke, Sioux City, who discussed
membership problems.
Chapter administration problems oc­
cupied the afternoon session. Speak­
ers were Paul W. Petterson, Minneap­
olis, selection of. committee personnel;
Dorothy Bielefeld, Milwaukee, women
as institute members; Oscar Brown,
St. Paul, the chapter budget, and Inez
M. Campbell, Duluth, on social activ­
ities.
A skit depicted a routine meeting of
officers of a mythical A.I.B. chapter.
Floyd W. Larson, national A.I.B.
secretary, and former Minneapolis
chapter executive secretary, urged
chapter leaders to still greater efforts

Annual summer meeting of the Park
Region Clearing House Association
was held at the Graystone Hotel, De­
troit Lakes, Minnesota, last month, ac­
cording to M. A. Rogness, Lake Park,
president of the group. Main speakers
were Wilbur F. McLean, Duluth, and
William Duncan, Minneapolis, presi­
dent and secretary, respectively of the
Minnesota Bankers Association.

New Bank Hours
According to an announcement by
Elmer B. Hanson, president of the
First State Bank in Fertile, Minnesota,
new banking hours have been set at
that institution.
Under the new schedule, the doors
of the bank will be open for business
each week day, except Saturday, from
9:00 a. m. to 12:00 noon and from
1:00 p. m. to 3:00 p. m. On Saturdays
the bank will be open from 9:00 a. m.
to 12:00 noon.

District Bank Officers
George W. Werstlein, cashier of the
Northern State Bank, Thief River
Falls, Minnesota, was elected president
of the Northwest Clearing House Asso­
ciation at its recent annual meeting in
Baudette. Other officers named in­
clude H. M. Heneman, cashier, Secur­
ity State Bank of Warroad, vice presi­
dent; J. Forrest Yetter, president of
the First National Bank of Stephen,
secretary-treasurer and Marshall coun­
ty director of the association. High­
lights of the meeting were addresses
by Governor Edward J. Thye, Col. S.
H. Griffin of the U. S. Engineers’ office
in Duluth, F. A. Amundson, Minnesota
commissioner of banks, Wilbur Mc­
Lean, president of the Minnesota Bank­
ers Association, and William Duncan,
Jr., secretary of the First National
Bank of Minneapolis, who represented
the Minnesota War Finance Commit­
tee at the meeting.

Cashier at Stewart
A T T H E A M E R I C A N IN S T IT U T E OF B A N K I N G C L IN IC I N M I N N E ­
A P O L IS — reading from left to right, Arthur W. Johnson, general chairman of
the clinic; Floyd W. Larson, N ational A . I. B. secretary, N ew Y o r k ; and
Christian Ries, president M inneapolis A . I. B. Chapter. M r. Johnson and
Mr. Ries both are employes of the Minneapolis Federal Reserve Bank. M r.
Larson is a form er employe.


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

Lester Lipke of Buffalo Lake, Minne­
sota, has accepted a position as cashier
of the First State Bank, Stewart, Min­
nesota, to succeed G. W. Harrington.
He was to join the bank last month.
Mr. Lipke has been assistant cashier
at Buffalo Lake for a number of years
Northwestern Banker

September 19

72
resigned his position there as assistant
cashier. He joined the staff of the
bank as bookkeeper in 1924.
Mr. Haberer will become associated
with his brother in the operation of
Haberer’s Garage and the Gopher Oil
Company.

and previous to that had served as
bookkeeper at Currie and Buffalo
Lake.

Elected Director
Adolph Marhula of the First State
Bank of Williams, Minnesota, was
elected director for Lake of the Woods
county of the Northwest Clearing
House Association, at the annual meet­
ing of the organization held at Wheel­
er’s Point recently.

Take Officers' Posts
At a recent meeting of the board of
directors of the Farmers State Bank of
Lakefield, Minnesota, H. L. Smith was
elected vice president of the bank, to
fill the vacancy caused by the recent
death of James Rost. Ralph M. Jones
was advanced to the position of cash­
ier.

Leaves Bank
After twenty years of association
with the State Bank of Park Rapids,
Minnesota, Ben Haberer has recently

Twenty-fifth Anniversary
The successful Farmers State Bank
of Mountain Lake, Minnesota, ob­
served its twenty-fifth anniversary re­
cently. It started business in 1919
with resources of $70,404. In its most
recent published statement they are
$1,295,668.

Joins Caledonia Bank
Pearl Meiners recently accepted a
position as teller at the Sprague State
Bank, Caledonia, Minnesota. Miss
Meiners is a graduate of the Caledonia
public high school and the vocational
school at La Crosse, Wisconsin.

G oes to Ortonville

Sickness, Accident,
and

Hospitalization Insurance
Reliable protection in a Com pany with
thirty-nine years successful experience.
"A-plus" rating in Dunne's Insurance Re­
ports for financial standing and ''Excellent''
for claim-paying record.
Small membership fee pays for Accident
and Health policies in full to the middle of
next December.
Write for Applications and literature re­
garding our new full cover policies.
★

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
PAUL CLEMENT, Secretary
2500 Pillsbury Avenue
MINNEAPOLIS 4, MINNESOTA

Northwestern Banker

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

September

Ralph Sather, of Annandale, Minne­
sota, has accepted a position as assist­
ant cashier with the Northwest State
Bank at Ortonville, Minnesota, recent­
ly. He has held a position for the past
14 years with the Annandale State
Bank and was cashier at the time of
his resignation.
While at Annandale he was presi­
dent of the Wright County Bankers
Association.

Park Region Elects
Peter Setterclal, Breckenridge, was
elected president; O. M. Alme of Moor­
head, vice president, and Hilding Lar­
son, Pelican Rapids, secretary-treas­
urer, at the annual meeting of the
Park Region Clearing House Associa­
tion recently, at Detroit Lakes, Minne­
sota.
Directors are: Clay county, Oscar
Barness, Baker; Otter Tail, Joseph Pet­
erson, Battle Lake; Becker, B. C. Bar­
rett, Detroit Lakes; Wilkin, Sterling
Olness, Rothsay, and director at large,
John Score, Vergas. Speakers were
W. F. McLean, Duluth, and William
Duncan, Jr., Minneapolis, president
and secretary, respectively, of the
Minnesota State Bankers Association,
and F. A. Amundson, state banking
commissioner. Others attending from
Moorhead were: O. B. Rusness and
Carroll Fridlund of the First National
Bank, O. M. Westlin and C. R. Euren,
American State Bank.

Just Bombs
Three Yanks sleeping in Italy were
awakened by a crash.
“What was that,” asked one, “bombs
or thunder?”
“ Bombs.”
“ Thank heaven,” said the first G.I.
“ I was afraid we were going to have
more rain.”

73

Twin C ity News

rARM ERS

&

MECHANICS

SAV­

I' INGS BANK, of Minneapolis, has

added two civic and business leaders
to its board of trustees. Elected at a
monthly meeting of the board were
Russell H. Bennett, mining engineer,
and Frank P. Leslie, vice president
and treasurer of John Leslie Paper
Company.
Edward A. Purdy has been elected
a director of Investors Syndicate, Inc.,
and George M. Stewart and Justus F.
Lowe have been elected directors of
its subsidiary, Investors Syndicate of
America, Inc., according to announce­
ment by Earl E. Crabb, chairman of
the board of directors of the parent
company. Mr. Purdy is assistant to
the president of Twin Cities Ordnance
Plant, was vice president of WellsDickey Company from 1922 to 1942,
and Minneapolis postmaster from 1914
to 1922. Mr. Stewart is president of
the G. M. Stewart Lumber Company.
Mr. Lowe is president of Justus F.
Lowe Company, investment house.

In another move, Donald W. Green,
vice president in charge of the invest­
ment department of Investors Syndi­
cate and its subsidiary and affiliated
companies, Investors Syndicate of
America, Inc., Investors Mutual, Inc.,
and Investors Syndicate of Canada,
Ltd., has been elected treasurer of the
parent concern. He will continue to
head the investment department.
Twin City bankers and business
men were particularly interested in
the credit policy program announced
by the postwar small business credit
commission of the American Bankers
Association, for a member of that
commission is Arnulf Ueland, presi­
dent of Midland National Bank and
Trust Company, Minneapolis.

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

By James M. Sutherland
Special Correspon dent

Clarence E. Hill, vice president of
Northwestern National Bank, Minne­
apolis, since 1922, has been elected to
the bank’s board of directors. He
fills the vacancy created by resigna­
tion of Russell A. Stevenson, formerly
dean of the University of Minnesota
School of Business Administration,
who left two months ago to assume
a similar post at the University of
Michigan. Mr. Hill has been active
in civic affairs. He is president of the
Minikahda club, past general chair­
man of the Community Fund and
treasurer of the Minnesota Masonic
Home.
Bloomington-Lake

National

Bank,

Minneapolis, has occupied for its own
use space formerly leased for store
purposes in its building at Blooming­
ton Avenue and Lake Street.
Expansion of the banking quarters
was necessitated by enlargement of
the staff and increase in the volume of
business. Since the beginning of the
war, deposits have risen from $2,900,000 to $6,248,000 and employes have
increased from nine to 25.
The new quarters, 18 by 33 feet, are
occupied by the bookkeeping and
proof departments. The space has
been completely redecorated. Exterior
of the remodeled quarters has been
rebuilt to conform to the style of the
rest of the building.

Changes Banks
A. O. Krogen, cashier of the First
National Bank of Chatfield, Minnesota,
resigned his position, effective last
month, to accept a position as vice
president and cashier with the Root
River State Bank of Chatfield.

Cashier Resigns
C.
E. Melbye, cashier of the State
Bank of Kerkhoven, Minnesota, for
the last 13 years, has resigned his posi­
tion with that institution, the resigna­
tion to become effective January 1,
1945.
He will leave the first of the year for
Minneapolis where he has accepted a
position.
For the eight years prior to his ac­
cepting the cashiership of the Kerk­
hoven Bank, Mr. Melbye had been
with the state banking department as
a bank examiner. For five years be­
fore that he was in the employ of the
Kerkhoven bank of which he was later
to be the cashier.

W H EN THE BO YS C O M E
H O M E A G A IN
(Continued from page 69)
require a very democratic approach
for its solution.
“ I look for a country in which all
workers in all classes will have def­
inite assurances of social security—se­
curity from material want in time of
financial trouble. Steps have been tak­
en, but we have only begun. Much is
still lacking.
“Another of my desires is that each
individual citizen take a more active
interest in government by closer at­
tention to elections. Why not an elec­
tion for a change in which all eligible
voters go to the polls? That is the true
idea of democracy.
“The solution to these problems all
lies in one field—education.
“Raise our level of free education
for the masses. Raise the compulsory
education age. Make our educational
system a living, up-to-the-minute or­
ganization. Shake the mustiness from
Northwestern Banker

September 1944

74
its folds and give new joy to people
through liberal knowledge.
“The postwar banking picture is as
yet rather hazy in my mind. One thing
, is certain. The strain being placed on
our financial structure now will even­
tually show up in banking policies
after the war. There will undoubtedly
be a spending spree when the final
peace has been won. To the banks
will go a great deal of the responsi­
bility of warding off and curbing spec­
ulation.
“Banking will have to streamline
itself to fit the demands of postwar
credit. Banking must be geared to
make small loans at a rapid turnover,
yet without endangering their finan­
cial structure. Credit buying will run
wild unless lending institutes main­
tain strong supervision over credit re­
quirements. Much capital will be re­

BANKS FOR SALE
Control, Minnesota Bank— Only

bank
in town of .1,500 population. R e­
sources around $1,500,000.00,
In ­
vestm ent required $55,000.00. Re­
fer Bank No. B590.
Control, Minnesota Bank— Only bank
in town of 1,200 population.
In
one of finest farm in g sections of
southern
M innesota.
Resources
over
$1,000,000.00.
Investm ent
around $50,000.00.
R efer BankNo. B624.
Minority Interest — Bank with re­
sources of around $500,000.00. Cap­
ital structure around $50,000.00.
Small point in very good section
of M innesota.
Investm ent $10,000.00. R efer Bank No. B623.

quired to reconvert war plants and to
establish new warborn industries.
“Of one thing I am very certain. I
fully intend to return to banking when
the war is over. The little I have
learned of banking has only served
to further incite my desire to know
more.”

S O AFTER SA V IN G S
ACCOUN TS NOW
(Continued from page 16)
American. Prior to the 1929 collapse,
banks and trust companies had active­
ly sought savings deposits, paying in­
terest at rates ranging from 3 to as
high as 5 per cent. As a result of
these high rates and a generally ag­
gressive policy, savings deposits grew
rapidly until in 1928 there was over
28 billion dollars of such deposits
owned by more than 53 million individ­
ual depositors.
There is no way of estimating the
effect these accumulated savings had

J

a m i e s o n
&

C

o m p a n y
Members

New York Stock Exchange
and

Other Principal Exchanges
★

BUYERS FOR BANKS
W e have several clients who are in­
terested in purchasing m inority or
controlling interests in banks lo­
cated in Iow a, M innesota, and other
midwestern states. I f you are inter­
ested in selling, write to us in strict
confidence.

W . R. OLSON COMPANY
Fergus Falls, M innesota

STOCKS
BONDS
CO M M O D ITIES
★

MINNEAPOLIS
ST. PAUL
DULUTH

FARGO
GRAND FORKS
SIOUX FALLS

PRIVATE WIRES

MUNICIPAL BONDS
CORPORATION BONDS and STOCKS
We shall be glad to furnish statistical
reports on request

KALM AN & COMPANY
Endicott Building
ST. PAUL
Garfield 3305

Northwestern Banker


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Federal Reserve Bank of St. Louis

McKnight Building
MINNEAPOLIS
Atlantic 5313

September 1944

on our economic system following the
stock market collapse in 1929. The
great wave of unemployment which
began late in 1929 or early in 1930 had,
by 1933, increased the number of un­
employed persons by approximately 12
million. During that same period of
time the number of savings depositors
dropped by almost 14 million, while
savings deposits went down nearly 7
billion dollars. Evidence enough that
millions of people had saved for a
rainy day, and it had rained. Had that
7 billion dollars not been available to
help breach the gap of unemployment,
the effect of our national economy
would have been far-reaching. If there
were no other argument in favor of the
value and desirability of savings bank­
ing, this alone should be sufficient to
encourage banks and bankers every­
where to promote savings banking
vigorously.
There is a greater and a better rea­
son, however, which lies in teaching
thrift. All great men and all great
nations have been thrifty, and have
remained great only so long as they
have been thrifty. The development
of the United States from a small agri­
cultural country to a great industrial
and agricultural empire is easily trace­
able to thrift on the one hand and vis­
ion and courage on the other. Thrift
is a habit and, like all habits, cannot
be put on and off like an old shoe, but
becomes fixed and certain in its pur­
pose. It is acquired only by training
and environment, and is an essential
part of good character. When we talk
of thrift and character, we will prob­
ably come nearer the truth if we say:
“Thrift is character.” If, as it is con­
tended, the banking system has played
such a large part in teaching thrift, it
is doubly important that they continue
to the end that the future of this na­
tion may be insured.
Only a few years ago a new philos­
ophy was slowly but surely infiltrated
into our national economy—a philos­
ophy of spending, wholly opposed to
the training of most Americans to save
systematically. During most of the
depression years we were constantly
urged to spend—spend to create a
market for goods which, in turn, was
expected to stimulate employment.
This, in conjunction with other eco­
nomic experiments, failed to accom­
plish the desired results. Except for
those who were given employment in
one of the many emergency labor
forces, unemployment continued to in­
crease. The “spend your way to pros­
perity” philosophy was not without re­
sults, however for, to a limited ex­
tent, it temporarily interrupted the
savings philosophy. Far worse, per(Turn to page 76, please)

75

. . . I N


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

THE

PHILADELPHIA

AREA

For m any years the Philadelphia National has served
h u n d r e d s o f th e c o u n t r y ’s le a d in g in stitu tio n s as
c o r r e s p o n d e n t. T h is is n ot o n ly b e c a u s e

o u rs is

P e n n s y lv a n ia ’s o ld e s t and la r g e st b an k — it is also
because we have always placed special emphasis on
correspondent bank relations as a m ajor elem ent in
our business.
O u r officers will be glad to answer inquiries from any
interested

institution — either

relating to

our

corre­

sp on d en t

b an k fa c ilitie s or to su p p ly in fo r m a tio n

concerning trade conditions in the Philadelphia area.

THE P H IL A D E L P H IA
N A T I O N A L
B A N K
PHILADELPHIA

1, PA.

★

ORGANIZED

1803

Resources over $750,000,000
MEMBER OF FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker

September 19H

76

• MI NN ESO TA
(Contniued from page 74)
haps, was the effect that it had upon
the thinking of too many bankers.
During the late nineteenth and early
twentieth century, when banks were
actively and earnestly interested in
securing savings deposits, the rates of
interest were high, but in proportion
to the rate of income the banks were
able to secure on loans and invest­
ments. Savings deposits were not only
profitable to the banks, but exceeding­
ly attractive to the depositor. Follow­
ing the 1929 collapse, loan and invest­
ment rates began to move downward

NEWS'

and, at the same time, the demand for
money diminished. Right then banks
should have begun the downward ad­
justment of savings interest rates so
that they might be kept proportion­
ately lower than investment income
rates. Unfortunately, many banks felt
that they were in no position to take
such individual action, simply because
they could not afford the chance of
causing their savings deposits to mi­
grate. Bank deposits of all types were
declining rapidly, and only a few banks
were in position to take any action
which might have accelerated the rate

Convention Chatter
C. L . F R E D R I C K S E N
P r e s id e n t

W h en

Iowa bankers meet in annual

M . A. W IL S O N
V ic e

P r e s id e n t

convention this month in Des Moines, they

W . G. N E L S O N
A s s is ta n t V ic e
W .

P re s id e n t

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

H . C. L IN D U S K I
A s s i s t a n t C a s h ie r
and M a n a g e r o f
A ir B a se F a c ility
C. L . A D A M S
A s s i s t a n t C a s h ie r
J.

S.

will visit with each other on m any topics,
including correspondent connections.
W hen Sioux City is mentioned, you will
hear special praise for the well-rounded,
service at the Live Stock National Bank.

H AVER

A s s i s t a n t C a s h ie r
JA M E S L. S M IT H
A u d it o r

On your Sioux City items, get in touch
with us— the only bank in the stock yards.

( W e l l see you at the loua Convention)

L ive S t o c k

Na t ìo n a l
OF

S IO U X

C IT Y .

M EMBER

Northwestern Banker


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

September 1944

B

F, D .I.C .

an k
IOW A

of decline, for fear that it might ulti­
mately exceed the rate of liquidation
of loans and investments. Banks were
truly on the horns of a dilemma. Sav­
ings deposits were too costly since sav­
ings interest was extinguishing too
much of the gross operating income
but, on the other hand, a too sudden
withdrawal of a volume of savings
deposits might have endangered the
whole structure.
Congress recognized this problem
and provided for it in the Banking Act
of 1933, as amended by the Banking
Act of 1935. The rate of interest that
any member bank might pay on sav­
ings deposits was limited. The board
of governors of the Federal Reserve
System, in compliance with the provi­
sions of the act, issued Regulation
“ Q,” which restricted interest on sav­
ings deposits to a maximum of 2V2 per
cent after January 1, 1935. It thus be­
came possible for banks to reduce their
cost of operation through the reduction
of savings interest rates but, as is usu­
ally the case, some banks saw in this
new provision an opportunity to re­
duce savings interest too drastically.
They simply swung the pendulum too
far in the opposite direction, apparent­
ly on the theory that the savings de­
positor could find no better investment
and would continue to leave his funds
on deposit for the sake of safety. The
fact that most depositors did leave
their funds on deposit does not mean
that they were happy about it or that
their thriftiness was rewarded and
thus further promoted.

Service Charges
It would be unfair to take the posi­
tion that equitably based savings serv­
ice charges are not justifiable. They
are, and every savings bank should
give active consideration to the institu­
tion of charges and penalties of an
equitable nature—designed not to pro­
duce income, but to discourage abuses
by that small group of savings deposi­
tors who actually are making no at­
tempt to save systematically. By the
same reasoning, the rate of interest
offered to savings depositors should
bear a direct and proportionate rela­
tionship to the average rate of income
which the bank or trust company may
be able to secure on the loans and in­
vestments into which the accumulated
funds are converted.
With the beginning of the defense
period, the Federal government, rec­
ognizing the value of the systematic
savings habit, so deeply instilled in
the minds of most people, began to
(Turn to page 100, please)
,

77

SOUTH
f

ih

D A K O T A
NEW S

H. R. KIB B EE , JR.
President
M itchell

G E O R G E M. S T A R R IN G
A c tin g

S ecreta ry

L O IS J. H A L V O R S E N

Some Kind of a Record
While it is true that resources of
many banks have risen to new highs
during recent months, a report comes
from a bank in South Dakota that
perhaps establishes a record of some
kind when it comes to gains of this
nature. We refer to the Bank of Lem­
mon, Lemmon, South Dakota, of which
C. O. Peterson is cashier.
In its statement of condition as of
June 29, 1940, this bank showed $354,685 in deposits, and total resources of
$398,172. The bank then was capital­
ized at $25,000.
As of June 30, 1944, we find the
capital has been increased to $50,000.
But look at this—deposits of the bank
leaped to $1,457,037, with total re­
sources of $1,541,307. All of which goes
to show what good management,
plenty of rain, and good farm prices
will do for the banking business.

Conditions Are Good
Vera Geib has recently been em­
ployed as a bookkeeper at Bowdle
State Bank, Bowdle, South Dakota. She
took the position vacated by Elsie
Kuehl.
This community according to F. G.
Grosz, vice president of the bank, an­
ticipates a good year. Although the
small grain crop is less than 1943 it
is expected to be good as is the corn
crop. More cattle are being raised than
ever before. The real estate prices are
about 50 per cent of what they were
during the boom of the first World
War. More farmers own their own
homes than ever before and less of the
homes are mortgaged.

W eds Pilot
The marriage of Margaret Elaine
Assmann, daughter of Mr. and Mrs.
John A. Assmann of Spearfish, South
Dakota, and Royce Lester Shepherd,
Dawson, Georgia, in the army air base
chapel at Santa Ana, California, was
announced recently.
Mrs. Shepherd attended school at
Nemo, Deadwood and Spearfish, and
has been employed at the First Nation­
al Bank of the Black Hills at Spearfish.

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(In the Service)

Sioux Falls News
LTHOUGH loans by South Dako­
ta state banks increased almost
A
$1,500,000 from April 13th to June 30th,
Banking Superintendent Erling Haugo

predicted recently that total loans will
drop to “an all time low” if this crop
comes through.
The August figure on his report,
which does not cover national banks,
was $22,531,524. Haugo said he ex­
pects a good crop will reduce the loan
figure to $15,000,000 or below.
Net increase of $1,076,496 was shown
in deposits in state banks, during the
month of July, but Haugo said this
was due to federal war loan accounts
increasing by $2,875,300 while demand
deposits fell off by $2,460,616. Total
deposits amount to $114,519,655.
When the annual picnic for em­
ployes of the Northwest Security Na-

tional Bank was held at the Izaak
Walton League clubhouse in August,
there were 100 persons in attendance.
The temperature had lowered, mak­
ing it ideal for the program of outdoor
sports arranged by bank officials.
Many took part in the sports contests
for which prizes in war stamps were
awarded.
Barbecued chicken featured the sup­
per menu. Gay colored caps, noisemakers and confetti decorated the din­
ner table.
Features of the evening’s entertain­
ment were accordion solos by Pfc.
Gus De Weerdt of Kansas City and the
Sioux Falls Army Air Field, and songs
by Joan and Jim Hanson, children of
Magnus Hanson of Dell Rapids, and
Carol Bennett, daughter of Mr. and
Mrs. Charles Bennett of Sioux Falls.
Bingo passed an hour, with defense
stamps for prizes, and dancing closed
the evening.
Ralph M. Watson, president of the
bank, was general chairman of ar­
rangements, and was assisted by offi­
cers and employes of the bank.
Tom S. Harkison, president of the
National Bank of South Dakota, has
been named general chairman of the
combined war fund and community
chest drive, to be conducted in Sioux
Falls between September 6th and 16th.
Quota for the annual campaign, which
covers all local and war charities ex­
cept the Red Cross, is expected to be
$80,000. W . E. Perrenoud, cashier of

South Dakota Committee Appointments
R. KIBBEE, Jr., vice president
of the Commercial Trust & Sav­
H
ings Bank, Mitchell, and president of
the South Dakota Bankers Association,
has announced the standing commit­
tees for the Association, to serve to the
close of the fiscal year May 1, 1945.
Those named are as follows:

Agriculture

Huron; Melvin I. Orms, Sioux Falls;
J. M. Patton, Mitchell; F. B. Stiles,
Aberdeen.

Legislative and Taxation
Walter Burke, chairman, Pierre; P.
H. McDowell, Sioux Falls; J. M. Lloyd,
Yankton; Harold Thomson, Presho; R.
E. Driscoll, Rapid City; W. W. Baker,
Sioux Falls.

A.
G. Berger, chairman, Clear Lake;
John N. Thomson, chairman, sub-com­
Membership
mittee on Government Lending Agen­
R. S. Banfield, chairman, Aberdeen;
cies, Centerville; Carl J. Odegard, W. C. Duffy, Sioux Falls; C. I. Danchairman, sub-committee of Farm forth, Yankton; A. B. Cahalan, Miller;
Chemurgy, Huron; E. B. Dwight, J. O. Van Nice, McLaughlin; C. C. An­
chairman, sub-committee on Soil Con­ derson, Rapid City; A. Kopperud, Wa­
servation, Springfield; C. A. Lovre, tertown.
Brookings; W. M. Willy, Madison;
Public Relations
R. A. Johnson, Kimball; L. L. Lillibridge, Burke; G. A. McGarraugh,
Carroll Lockhart, chairman, WaterSturgis.
town; Harold Edmunds, Yankton; W.
E. Perrenoud, Sioux Falls; A. E. Dahl,
Bank Management
Wm. C. Rempfer, chairman, Parks- Rapid City; L. Roy Klatt, Tripp; L. L.
ton; B. R. Laird, Tyndall; H. C. Whaley, Branch, Pierre.
Northwestern Banker

September 19Ü

78

*

SOUTH

DAKOTA

NEWS

the First National Bank and Trust
Company, will serve as associate chair­
man of the classified section, handling
solicitation of employes, during the
campaign.

Empire Fair. Playing a key part in
preparing for the big event was Frank
Cinkle, treasurer of the fair associa­
tion and cashier of the National Bank
of South Dakota.

T. N. Hay ter, vice president of the
First National Bank and Trust Com­
pany, was a surgical patient in August
in McKennan Hospital, Sioux Falls.
He expected to recover rapidly.
One of the best outdoor stage shows
ever presented in Sioux Falls was
given at the 1944 edition of the Sioux

At the annual business meeting of
Harold Mason Post, American Legion,
members nominated T. S. Harkison,
president of the National Bank of
South Dakota, to serve as first vice
commander during the coming year.
Word has been received that Lt. Col.

Harris Trust and Savings Bank
O rganized

as N . W .

H A R R IS

Harris

TRUST

&

Co.

1882— Incorporated

B U IL D IN G ,

1907

C H IC A G O

Statement of Condition
June 30, 1944

Resources
Cash on H an d and D u e from B a n k s ......................................................
U . S. Treasury Bills and Certificates....................................................
U . S. Governm ent B onds and N o t e s .................................................
State and M unicipal S ecu rities................................................................ T
O ther B onds and Secu rities.......................................................................
L oan s and Discounts
................................................................................
fe d e r a l R eserve Bank S to c k .......................................................................
C u stom ers’ Liability on A cceptances and L etters of C r e d it..
A ccrued Interest and O th er R e so u rces...............................................
T otal

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

$110,650,197.96
115,346,999.51
107^617^091.20
33,’560 4 80 .9 8
36,324,096.60
104,233,352.00
540,000.00
213|200'35
1,698,665.45
$510,183,784.05

Liabilities
Capital
..............................................................................s. . $
Surplus ..................................................................................
U ndivided Profits ...........................................................

6,000,000.00
12,000,000.00
2,744,136.51

Reserves for Contingencies, T ax es, Interest, E tc ...........................
A cceptances and L etters of C red it...........................................................
D em an d D eposits ............................................................$452,824,362.42
T im e D eposits ..................................................................
27,115,566.53
T o ta l

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

$ 20,744,136.51
9,286,518.24
’213^200.35
479,939,928.95
$510,183,784.05

897.000 000 of .United States Government obligations and $300,000 of State and
Municipal Securities are pledged to secure $78,046,739.41 of United State Government
Deposits and $ 13 ,993,629.42 of Trust Deposits, and to qualify for fiduciary powers.

D I R E C T O R S
JAMES M. BARKER
Chairman. Allstate Insurance Co.
MARK A. BROWN
Vice-President
THOMAS DREVER
President, American Steel
™ ^ F0UndrieS
FRANK
R. ELLIOTT

ALBERT W. HARRIS
Chicago
STANLEY G. HARRIS
Vice-President, and Chairman
SVLNEV
V G. McALLISTER
^^IntOTn^tirai^JlimveSerwT66
1nternational Hart ester Co.

PAUL S. RUSSELL
Vice-President
WILLIAM P SIDLEY
Sidlev McPherson Austin
'
& Burgess’
'
HAROLD H SWIFT
Vice-Chairman
of Board
Swift & 0o

T in w A e T w T e v T A v
HOWARD W. FENTON
C4 i\4IU L of4 il® T oard
FRED G GURLEY
President, Atchison, Topeka
& Sa,U a™ iV IP 4 waU L d ? pany
ARTHUR B HALL
Hall & Ellis

Chairman, National Tea Co.
FRANK McNAIR
Executive Vice-President
A. H. MELLINGER
President, Illinois Bell
Telephone Co.
CHARLES H. MORSE
Director, Fairbanks, Morse & Co.

STUART J TEMPLETON
Wilson & Mcllvame
W ARD W. WILLITS
Chairman of Board
The Adams & Westlake Co.
FRANK H. WOODS
Chairman of Board
Addressograph-Multigraph Corp.

Mem ber of Federal Deposit Insurance Corporation

•
A. A. Anderson, executive vice presi­

dent of the Luverne, Minnesota, Na­
tional Bank, who has been on active
duty since 1941, has been placed on
the inactive list and is now back in
charge of the bank again.
C. A. Christopherson, president of
the Union Savings Bank and executive
director of the South Dakota war fi­
nance committee, expressed deep grati­
fication at the record established by
this state in the Fifth War Loan drive.
Final totals revealed that South Da­
kota stood fourth in the nation on “E”
bond sales, which were tabulated at
$15,714,000, or 130.9 per cent of the
$12,000,000 quota. The percentage was
topped only by North Dakota, Wyo­
ming and Iowa.
South Dakota’s total purchases of
all types of bonds were placed at $49,239,020, or 133 per cent of the $37,000,000 goal. Of this amount, corpo­
rations purchased $27,084,389, or 162
per cent of a $16,000,000 goal, and
sales of all types of bonds to indi­
viduals were $22,154,631, or 105 per
cent of a $21,000,000 quota.

Bank at Clark
The Citizens State Bank opened for
business in Clark, South Dakota, last
month. It was first organized in 1922
operating at Garden City, South Da­
kota. Branch offices have been estab­
lished at Bradley, Willow Lakes and
Vienna, and will continue to be main­
tained there. Bank officers are: J. A.
McGillivray, president; M. J. McGillivray, vice president; G. O. Haugen, cash­
ier, and Lois Evans and Doris Hough­
ton, tellers. The bank’s capital is $50,000, with $10,000 surplus and $5,000 un­
divided profits. Total deposits are
$628,134.

Lennox Assistant Cashier
W. C. Schlueter of Sioux Falls ac­
cepted a position as assistant cashier
at the Exchange Bank of Lennox,
South Dakota, last month.
Mr. Schlueter has been deputy regis­
ter of deeds of Minnehaha county
since 1941. Previously he was clerk
in the register of deeds office for sev­
eral years. He has also had some expe­
rience in the banking business.
Confessions
“ I have a confession to make to you.
I’m a married man.”
“Gosh, you scared me. I thought
you were going to say this car wasn’t

yours.”
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September 19kk

79

NORTH

Fargo News
OMPLETE reorganization of the
Committee of Economic Develop­
C
ment in North Dakota will be made

within the next few weeks, F. A.
Irish of Fargo, state chairman, de­
clared at a meeting of the Fargo CED
and the Fargo Chamber\of Commerce.
Herman Wehmann of Minneapolis,
manager for the CED in the ninth
A. C. ID S V O O G
C. C. W A T T A M
region, who was a speaker at the Fargo
Secretary
Pi’esident
meeting, and B. E. Groom, secretary
Fargo
Grafton
of the Greater North Dakota Associa­
tion, also conducted a series of meet­
ings in the state, reorganizing CED
committees. R. H. Barry, executive
director of the Fargo Chamber of Com­
merce, announced that a survey will
point
two
members
of
the
association
C. Idsvoog, vice president of
. the Grafton National Bank, and to the board of directors of the Post be made in connection with the CED
president of the North Dakota Bank­ War Highway Improvement Associa­ to determine how many postwar jobs
ers Association, has named his Asso­ tion, and, in accordance with such di­ industry of the city will provide.
Mr. Irish asked that civic leaders in
ciation committees which will serve rections, has named E. A. Saltzman, of
for the ensuing year. Those on the Bismarck, and Blanding Fisher of each of the 11 districts surrounding the
larger cities of the state lend their
Devils Lake.
committees are as follows:
assistance in completing the CED or­
ganization both in the conduct of sur­
Agricultural
Is Executive Officer
veys and furthering plans for in­
Fred A. Irish, Chairman, Fargo; F.
B.
C. Grangaard of Sioux Falls, South creased employment to insure jobs for
D. McCartney, Oakes; Dugald Stewart, Dakota, was to become an executive returning service men.
Bowman; F. A. Foley, Rolla; Clarke officer of the First National Bank in
Bassett, Fargo.
Grand Forks, effective September 1st,
Second Lieutenant Willard V. Ofsit was announced by Fred R. Orth, thnn, former employee of the National
Legislative
president of that bank.
Bank of Wahpeton, North Dakota, was
C. W. Burgess, Chairman, Edgeley;
Mr. Grangaard, now assistant cashier killed in action July 9 in France, ac­
J. J. Schmid, Wilton; H. A. Fischer, of the National Bank of South Dakota cording to word received by his wife,
Washburne; W. S. Davidson, Willis- at Sioux Falls, is the son of M. O. Gran­ Mrs. Valerie M. Ofsthun of Wahpeton.
ton; C. O. Leverson, Elgin; Verne Wells, gaard, vice president of the First Na­
Lieutenant Ofsthun went overseas
Robinson; G. H. Hernett, Ashley.
tional Bank in Minneapolis.
May 8, 1944, and was in England three
Born at Rogers, North Dakota, 33 weeks. He arrived in France a few
years ago, Mr. Grangaard moved with days after D-day and was in the in­
Public Relations
L. E. Callahan, Chairman, Munich; his family to Minneapolis in 1921, fantry. His death presumably occurred
J. R. Madsen, Mandan; O. P. Kjelstrup, graduating from Minneapolis Central on the Normandy peninsula.
Minot; Erie Fouks, Valley City; L. E. high school and receiving a law degree
at the University of Minnesota, in June
Charles A. Bonzer, 55, of LidgerGiedt, Richardton.
1933.
wood, N. D., former mayor of that city,
He has had wide experiences in director of the First National Bank
Bank Management
Guy Cook, Chairman, Carrington; A. banking, working at different times and one of North Dakota’s best known
C. Brown, Hannaford; C. S. Anderson, for the Federal Reserve Bank of Min­ citizens, died unexpectedly at his home
Hatton; L. H. Ickler, Jamestown; G. J. neapolis, and with banks in Minneota recently.
and Windom, Minnesota, before going
He had been in ill health a number
Fischer, AVahpeton.
to Sioux Falls in January, 1943.
of years but remained active until his
death. He was the son of the late A.
Water Conservation
F. Bonzer, early-day North Dakota
R. A. H. Brandt, Minot; E. A. Saltz- First and Last Dividend
legislator.
man, Bismarck; M. J. Raschko, Dick­
Depositors in the Farmers State
inson: O. A. Refling, Drake; R. G. Ras­ Bank of Columbus, North Dakota,
J. A. Graham of Bismarck, chairman
mussen, Williston.
which closed its doors on June 15, 1931,
of the North Dakota State Banking
were most pleasantly surpised recently
Board, announced that there had been
Junior Bankers
when they received dividend check
L. E. Liiyquist, Chairman, Lisbon; No. 1 and final in the amount of 4.7 no changes in state banks of North
Dakota as to new banks, changes in
Theo. H. Tufte, Northwood; W. D. per cent of their deposit.
bank titles, mergers, consolidations,
Dwight, Fargo; A. A. Mayer, Bismarck;
closings, or bank that have voted to
D. W. Westbee, Grand Forks; M. W.
Cashier Is Named
enter into voluntary liquidation, dur­
Loffer, Fargo.
The board of directors of the Nation­ ing July.
Directors of Post War Highway Im­ al Bank of Jamestown, North Dakota,
“A man’s good looks are often spoiled
last month elected Carl B. Moe cashier
provement Association
when he sneers.”
In accordance with resolutions of the bank.
“Yeah, especially when he sneers
Mr. Moe succeeds George A. Ander­
passed at the convention the president
of the association was directed to ap­ son, who is now in military service. at a bigger man.”

D A K O TA
NEW S

North Dakota Committees Named

A


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80

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81

Hamburger Fry
Mr. and Mrs. Boyd Rist entertained
the personnel of the Wymore, Nebras­
ka, National Bank recently at a picnic
on their lawn.
There was a hamburger fry with
many additional good things to eat.
Present were Martha Thomas, Betty
Thompson, Doris Lemke, Mrs. Don
Harpster and the host and hostess.

NEBRASKA
NEW S

Is Married
R.

North Platte, Nebraska, after a two
weeks vacation.

Janette Havel became the bride of
John Helms of Sioux City, Iowa, at
Center, Nebraska, recently.
She is a graduate of Pierce high
school and an employe of the Cones
State Bank of Pierce.

Discuss Soil Conservation

Display Coins

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

I. S T O U T
P r e s id e n t
T ekam ah

Double Duty
Banker by day and farmer by night
is the dual role being played by Percy
C. Fuhlrodt, assistant cashier of the
Citizens National Bank at Wisner, Ne­
braska, and president of the town’s
school board, who cultivates corn on
the L. G. Purtzer dairy farm. Doing
his bit to relieve the farm labor short­
age, Mr. Fuhlrodt has been working
on the farm after banking hours for
the past month, thus freeing Purtzer
to do his evening chores.

Future Bankers
Two new employes were, initiated
into the business at the State Bank of
Table Rock, Nebraska, recently. Mrs.
Hallena Bonham and Orville McKnight
began new duties learning the bank­
ing business under the direction of
Cashier G. F. Bonham and Assistant
Cashier Valeria Merrill.
Miss Merrill has tendered her resig­
nation. effective this month, and the
two new employes will assume her
duties.

Ogallala Employe W eds
The engagement and approaching
marriage of Kathryn Schafer to Lieut.
Glenn Zeig°nhagen of Santa Barbara,
California, has been announced. For
the past five vears Miss Schafer has
been employed in the First National
Bank. Ogallala, Nebraska.

Breaks Bank Window
Rain measuring 1.55 inches was re­
ceived at Center, Nebraska, one night
last month. The rain was accompa­
nied by a hard wind which blew- down
several big trees and at least two elec­
tric lines, causing the town to be with­
out electric power for about twentyfour hours. One big plate glass win­
dow was blown out of the Center State
Bank Building. The wind did not se­
verely damage crops in the vicinity.

Gage county bankers held a dinner
meeting at the Paddock, Beatrice, Ne­
braska, last month and heard their
association county president, L. B.
Rist, vice president and Cashier, Wymore National Bank, Wymore, talk on
the vital importance of soil conserva­
tion.
He called upon conservation tech­
nicians, members of the conservation
district board, and others to testify as
to the necessity of taking steps to save
the moisture and soil and to control
floods. There was complete agreement
and the bankers agreed to aid by inter­
esting farmers in conservation.

Tops Records
Deposits in state banks June 30, 1944,
totaling $214,802,259, were the highest
recorded for the last 15 years, Nebras­
ka State Banking Director Wade Mar­
tin announced recently.
The June report showed deposits al­
most tripling the pre-Pearl Harbor to­
tal of $77,055,283 deposited in state
banks June 30, 1941. The increase of
$18,982,549 in deposits during the last
six months sent the total to a high
unsurpassed since the flush days of
1928.

Nebraska
Wartime Conference
47th State Convention
OM AHA
Saturday, November I !

A number of coins from the various
countries in the Pacific theatre of
operation have been received at the
Security State Bank in Allen, Nebras­
ka, from Sgt. Marvin Burgess, who is
stationed in New Guinea. These have
been mounted in a frame and placed
on display.

Takes Office
George Apking of Daykin, Nebraska,
has taken over the cashiership of the
State Bank of Alexandria, Nebraska,
recently made vacant by the resigna­
tion of J. J. Rothmeier. Mr. Apking
has been cashier of the Jefferson Coun­
ty Bank of Daykin a number of years,
and during the past few years has been
dividing his time between the Jeffer­
son County Bank and the Farmers
State Bank of Plymouth, of which he
has also been in charge.
He will be assisted in the State
Bank of Alexandria by Mrs. Erma
Bennett, who has been employed in
the Farmers State Bank at Plymouth.

Omaha Promotions
Promotions and new officers ap­
pointed at the election meeting of the
Douglas County Bank of Omaha, Ne­
braska, were recently announced by
President K. G. Harvey. Herbert H.
Meile has been promoted from cashier
to vice president, while Henry R.
Roose, formerly assistant cashier, be­
comes cashier. Paul M. Pedersen, a
lifelong resident of Omaha, and Regina
Nagle have been elected assistant cash­
iers.
At the close of business June 30,
1944, total resources of the Douglas
County Bank amounted to $4,361,343.
Total capital accounts showed $173,685
and deposits were up to $4,178,367.

Have Bookkeeping Machine
Back on the Job
Miss Mattie Ralston has resumed
her duties at the McDonald State Bank,

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Hotel Fontenelle

The State Bank of Dannebrog, Ne­
braska, has recently installed one of
the Burroughs bookkeeping machines.
Northwestern Banker

September 19'i't

82

Nebraska Convention in Omaha
EMBERS of the Nebraska Bank­
ers Association will hold their
M
forty-seventh annual convention in
Omaha on Armistice Day, Saturday,
November 11th, with headquarters at
Hotel Fontenelle. In view of the close
relation of banking to the war effort,
the meeting will again be a wartime
conference.
While program and convention de­
tails are not as yet completely ar­
ranged at this early date, Secretary
William Hughes has released a few
plans of general nature as to the con­
vention activities.
Registration will start late the after­
noon of Friday, November 10th. On
this afternoon, also, a meeting of the
executive council of the Nebraska
Association will be held. Two annual

dinners will be held Friday evening—
that of the executive council and the
Nebraska Association Past Presidents.
Following further registration Sat­
urday morning, the 11th, the first busi­
ness session of the convention will
open at 10:30. There will be a lunch­
eon at noon, an afternoon business ses­
sion, and a social hour preceding .the
annual dinner to be held Saturday eve­
ning. Secretary Hughes advises that
invitations have gone to a number of
outstanding speakers to address the
several sessions.
An important item of business for
association members to be presented at
the convention is the proposed revision
of the State Association constitution
and by-laws. Changes to be adopted
include a complete rearrangement of

VICTORY IS COMING

NEWHOUSE PAPER COMPANY
St. Paul

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Moline

Changes Titles
The semi-annual meeting of the di­
rectors of the Tilden Bank, Tilden,
Nebraska, was held recently. Princi­
pal business was the transferal of the
cashiership from B. E. Graham to J.
J. Ryan and electing the former a vice
president. Mr. Graham has retired
from active participation in the work
of the bank. While still retaining his
interest in the bank he will devote his
time principally to his real estate and
insurance business. Dean Hales re­
tains’ his position as assistant cashier.

To Have Commercial Bank

Victory on the fighting front is coming nearer
every day. This means the increased sale of con­
sumer goods before very long. It means the in­
creased use of credit and banking facilities, and
it means that the printed m essage whether used
by industry or finance will carry more influence
if it is printed on high grade Newhouse Paper
which we alw ays have available.

Minneapolis

the membership schedule where dues
of the smaller banks are reduced and
those of the larger institutions in­
creased.
There are plenty of rooms in Omaha
hotels to accommodate convention del­
egates, providing those planning to at­
tend get their reservations in early.
Members are urged to make reserva­
tions as quickly as possible.

Dubuque

The state banking department is­
sued a charter to the State Bank of
Sterling, Nebraska, which began op­
eration September 1st with a capital
of $25,000.
J. V. Johnson is president and H.
W. Shepman. vice president, both of
Tecumseh. Cashier is Martin Dirks,
Sterling. The bank will replace the
old Sterling Cooperative Association
which is being liquidated.

Assistant Cashier W ed
Maxine Carpenter of Wauneta, Ne­
braska, and Archie M. Bishop were
married recently.
Mrs. Bishop has been assistant cash­
ier in the Wauneta Falls Bank for the
past year and a half.

83
ings and loan associations, during the

Fifth War Loan Drive, sold $846,252
worth of Series E Bonds to customers.
The quota was $1,125,000, set by the
national organization for Nebraska.
Total number of Series E Bonds sold
during June was 3,360.
Total number of bonds bought by
these associations for investment dur­
ing the same period was $7,516,500,
against a quota of $2,250,000.
Total amount of bonds bought since
January 1st was $10,854,130.
The figures were announced by Les­
lie E. Martin, secretary-treasurer of
the state association.

vice president of the
Omaha National Bank, has been
R
named Nebraska member of the new­
AY R. RIDGE,

ly-created postwar credit commission
for small business.
The broad plan of the commission,
made up of banks over the nation, is
the creation of nationwide machinery
to mobilize the credit facilities of banks
for postwar credit needs of small busi­
ness organizations.

Gwyer H. Yates, former Omaha bank
president, spent a few days recently
at the Fontenelle Hotel in Omaha on
his way home to Santa Barbara, Cali­
fornia, after a trip to Washington,
D. C.

teenth and Farnam Streets, Omaha’s
busiest downtown intersection, and
counted 48 lions.
But they were just the ones sculp­
tured on the front of the*United States
National Bank Building—two rows of
them extending across both the Far­
nam and Sixteenth Street sides, 34
smaller lions’ heads in the upper row,
14 larger ones in the lower.

Mr. and Mrs, W. A. Sawtell, who
spent a two weeks’ vacation at Piney
Ridge, Minnesota, have returned. They
were accompanied by their son, Ste­
phen, and by another son, Capt. Wil­
liam Sawtell, who was spending a 15day leave with his parents. Mr. Saw­
tell is president of the Stock Yards
National Bank of Omaha.

The 62 Nebraska state-chartered sav­

Guy Gadbois, former Ornahan pre-

O. P. Cordill, cashier of the Federal

Reserve Bank, Omaha branch, and C.
F. AYitt, president of the South Omaha

Savings Bank, spoke at a meeting of
the Omaha chapter, American Insti­
tute of Banking, at the Regis Hotel.
Reappointment of A\T. A. Sawtell,
president of the Stock Yards National
Bank of Omaha, to the chairmanship
of the veterans’ employment commit­
tee of the Omaha Chamber of Com­
merce, was announced by Charles
Saunders, vice president and chair­
man of the chamber’s executive com­
mittee. Mr. Saunders is vice president
of the First National Bank of Omaha.
The group was formed early this
year to supplement and aid the Ameri­
can Legion veterans’ employment bu­
reau. Recently the veterans’ commit­
tee completed a survey of types of jobs
available in six hundred Omaha indus­
tries at the request of the Legion.
Mrs. Emmett G. Solomon and chil­
dren, Sue and Anne, left the middle of
August for Washington, D. C., to join
Uieut. Col. Solomon, who will be back
in Washington in September after
serving in Hawaii as acting director of
selective service for that territory. He
is on leave from his post as assistant
trust officer of the First National Bank
of Omaha.

answer customers
questi ns about

N A D A
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vides a reliable and ready source
of information to A m erican banks
seeking to serve their custom ers
better in the C an ad ian field. In­
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ditions
tance

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Federal Reserve Bank of St. Louis

Northwestern Banker September 19'ifr

84

/

•
viously associated with the Burns-Potter investment firm, and now living in
Beverly Hills, California, has been
named executive vice president of At­
las Securities, Inc., a subsidiary of the
Atlas Investment Corporation of Bev­
erly Hills. His wife is the former Marcelle Folda of Omaha, onetime queen
of Ak-Sar-Ben.
Mr. and Mrs. John B. Trunnell are
the parents of a son born at Salt Lake
City. Mrs. Trunnell is the former Cyn­
thia Mallory of Omaha, daughter of
Navy Lt. and Mrs. Richard Mallory.

NEBRASKA

NEWS

It is the Mallorys’ first grandchild. Lt.
Mallory is on leave from his duties as
vice president of the United States
National Bank of Omaha. Mrs. Mal­
lory left August 22nd for a visit in
Salt Lake City.
The Mortgage Bankers Association
of America has announced a comlete
slate of candidates for officers and gov­
ernors to be presented at the associa­
tion’s annual meeting in Chicago, Octo­
ber 20th.
Nominations for regional vice presi­

•
dent include C. AY. Mead, of Omaha,
president of the Nebraska Bond and
Mortgage Corporation. L. E. Mahan,
St. Louis, is the nominee for president.
Mr. and Mrs. T. L. Davis spent a
brief stay at Lake Miltona, Minnesota,
near Alexandria. Mr. Davis is presi­
dent of the First National Bank of
Omaha. They were accompanied by
their granddaughter, Carol Davis, and
were joined later by the litle girl’s
brother, Tommy Davis, and the chil­
dren’s mother, Mrs. John Davis. Lt.
(j.g.) John Davis, who recently visited
his family, is stationed at the armed
guard school, Gulfport, Mississippi.
Mr. and Mrs. Andred Kopperud have
returned to their home in Watertown,
South Dakota, after a stay in Omaha,
their former home. Mr. Kopperud for­
merly, for a number of years, was an
officer of the Federal Land Bank of
Omaha. They came to Omaha to see
their son-in-law and daughter, Navy
Lt. and Mrs. AVilliam C. Ramsey, Jr.,
who arrived for a ten day visit. The
junior Ramseys were guests of Mrs.
W. C. Ramsey.

Production Lines are Battle Lines

W A R -TIM E B A N K IN G SERV ICE
— adapted to the requirem ents

Standing in line to get into the diner
and toting lunch boxes on trains was
an old story to Mr. and Mrs. Harold
Landeryou and their daughter, Miss
Lorraine Landeryou, before they fin­
ished a three weeks’ trip to the Pacific
northwest when Mr. Landeryou at­
tended grand chanter meetings of the
Eastern Star in Idaho and at Seattle
and Portland. Mr. Landeryou is an
Omaha investment banker.
Miss Landeryou has been working
with the Rainbow Girls at the Omaha
Service Men’s Center and plans to en­
ter the University of Nebraska this
fall.

of C orrespondent Banks
in serving a N ation at w ar

Bankers T

rust

C

o m pa n y

N EW Y O R K
M e m b e r o f th e F e d e ra l D e p o s it I n s u r a n c e C o r p o r a t io n

Bank Replaced
Just four days after announcement
that the Commercial State Bank of
Clay Center, Nebraska, would go into
voluntary liquidation for lack of help,
stock subscriptions were completed for
organization of a new bank with $25,000 capital.
When the Commercial State Bank of
Clay Center liquidated the New Com­
mercial State Bank commenced func­
tioning. President will be August C.
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

Northwestern Banker

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Federal Reserve Bank of St. Louis

September Í944

V'

85

•
Krebs, and vice president, Orin McKelvie. Other directors are: H. E. Swedeberg, cashier; and L. D. Wetwiler, S.
W. Moger and R. H. Moore.

Assists in Bank
Carroll Lewis, new vice president
and trust officer of the Nebraska City
National Bank, Nebraska City, Nebras­
ka, is taking a more active part in the
operation of the bank during the ill­
ness of Otto Schneider, cashier, who
has been unable to work for several
weeks.
Mr. Lewis, president of the Bank of
Peru, is making frequent trips to Ne­
braska City to assist in the operation
of the bank.

Bank at Air Base
On the solicitation of the Grand
Island army air field, the First Na­
tional Bank has been designated as a
fiscal agency for the Treasury Depart­
ment and opened banking facilities at
the air field.
Quarters have been provided in the
finance department building.
Banking services are available be­
tween 10:00 a. m. and 2:00 p. m., with
Walt Siebert, assistant cashier of the
bank, as manager, with an assistant
from the bank personnel.

NEBRASKA

NEWS

•

cerns planning to use air express for
distribution of postwar products.
The Army is returning many of the
planes taken from the commercial air­
lines for war purposes. They are be­
ing converted to civilian use. This will
mean better and more frequent sched­
ules, says Mr. Merritt, and with a de­
crease in production of certain war
materials and increased space avail­
able, distribution facilities are con­
stantly increasing.
The business man who has been
reading a lot about the advantages of
shipping his products by air, will have
a chance to experiment in new and dis­
tant markets—he can begin to lay his
plans to meet postwar competition. As
an example of how air shipments can
be used for entirely new purposes, and

thereby create entirely new business,
Mr. Merritt cited the conventions.
Most of such traffic is flown in planes
which carry mail and express only.
A study by Wayne University on
fruit and vegetables as air cargo, bears
out Mr. Merritt’s ideas. Such ship­
ments await production of cargo air­
craft for economical transport. Ac­
cording to the survey, the potential air
traffic in fruits and vegetables alone at
15 cents a ton-mile is approximately
six times the total of all airborne ex­
press in 1941; at 7 cents, 80 times; at
5 cents, 233 times; and at 3 cents, 968
times the total air express volume in
1941.
Thus do we see in the making pre­
viously unheard of opportunities that
will provide new avenues of employ­
ment after the war.

Financially strong, with a friendly
personnel experienced in correspond­
ent service, this institution is ideally
situated to handle your business in
strategic

Lincoln

and

surrounding

territory.

Handles Office
The Lindsay Cooperative Credit As­
sociation office in Lindsay, Nebraska,
is being handled by John Miick of
Humphrey, while L. G. Winkler is
taking a rest.

(o N T I MENTAL (s|ATIONAL

&ANK
LINC
OLN
/

Back to School

Member Federal Deposit Insurance Corporation

Betty Anderson has resigned her
position in the Stockmens National
Bank, Rushville, Nebraska, where she
has served the past two years. She
plans to enter the Colorado Womans
College in Denver in September.

f o l l o w 'th e

GLUELINE
..........................

Airborne
In discussing “ The Impact on Busi­
ness of the Transportation of Property
by Air,” K. N. Merritt, of the Railway
Express Agency, feels there is a bright
future for business and industrial con­

B ANKS

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BERKOWITZ ENVELOPE CO.

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Federal Reserve Bank of St. Louis

N EBR A SKA

1912 Grand A ve., Phone 4-4126, Des Moines 14, Iowa

Northwestern Banker

September 1944

86

Iowa Bankers Association Convention
September 3rd and 4th
Des Moines

We Are Looking forward With Pleasure to Meeting
and Visiting With You at the Convention ...

Alvin E. Johnson, President
Henry C. Karpf, Vice President
R. H. Kroeger, Vice President
Paul Hansen, Vice President and Cashier
W. Dean Vogel, Vice President
H. H, Echtermeyer, Vice President
L. V. Pulliam, Assistant Cashier
C. G. Pearson, Assistant Cashier
Earl R. Cherry, Assistant Cashier
Tom J. Price, Assistant Cashier

B AN K

LIVE
O

M

A

H

A

Member Federal Reserve System and Federal Deposit Insurance Corp.

Northwestern Banker


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

September 1944

87

Another

58 th
Annual
Meeting

War-Work
Conference

Des Moines

Headquarters

September 3 - 4

Hotel Ft. Des M o ines
V. W . JOH N SO N
President, Iowa Bankers Association

Iowa Bankers Convention Program
e g is t r a t io n

for the 58th annual

and war-work conference
R pfmeeting
the Iowa Bankers Association

will start at 8:00 a. m., Sunday, Septem­
ber 3, and at 10:00 a. m., the seventh
annual meeting of the Iowa Associa­
tion of Bank Auditors and Comptrol­
lers will convene. For the first time
since 1941 this organization is holding
a separate session. The meeting is
open to all, and this year is especially
important.
Among the speakers are W. R. Hat­
ter, Marengo, president “ Iowa Associa­
tion of Bank Auditors & Comptrollers”
who will preside; Fred M. Morrison,
president, Des Moines Clearing House
Association; V. W. Johnson, Cedar
Falls, president Iowa Bankers Asso­
ciation; W. P. Ronan, Decorah, member
of board of governors, “ Iowa Associa­
tion of Bank Auditors & Comptrollers” ;
L. Call Dickinson, well-known tax at­
torney of Des Moines will talk and
answer questions on the “ Individual
Income Tax Act of 1944; M. L. R. Wade,
head of Salary Stabilization Unit, Bu­
reau of Internal Revenue regional of­
fice, Kansas City, and Walter W. King,
regional director, Wage and Hour and
Public Contracts Division, Kansas City.
Frank Tamse, Des Moines, secretarytreasurer of the “ Iowa Association of
Bank Auditors & Comptrollers” will
present the series of questions which
Iowa bankers have sent into their
State Headquarters for Mr. King and
Mr. Wade to answer.

September 3, 1:30 P. M.
Seventh Annual Meeting of “ Iowa

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Federal Reserve Bank of St. Louis

Junior Bankers Association” which is
holding a separate half-day Convention
session by itself this year, the first
time since 1941. This session open to
all.
SPEAKERS — Robert G. Lexvold,
Spencer, president “ Iowa Junior Bank­
ers Association” who will preside; Fred
M. Morrison, president, Des Moines
Clearing House Association; V. W.
Johnson, Cedar Falls, president Iowa
Bankers Association; Harold R. Spen­
cer, Oakland, member of Council of
“ Iowa Junior Bankers Association” ;
C. D. Tedrow, Princeton, Illinois, mem­
ber of A. B. A. “Commission on Coun­
try Bank Operations”—“ Some Obser­
vations of a Country Banker” ; Stephen
M. Foster, economic adviser to the New
York Life Insurance Company, New
York, N. Y., nationally known econo­
mist, “ The Future of Interest Rates—
What Are They To Be” ; Tom Collins,
Kansas City, Missouri, a superb hu­
morist, “The Price of Not Being an
Ape”; Herbert V. Prochnow, Chicago,
outstanding banker, student and au­
thor, “ Some Major Problems of Our
Time.”

September 3, 7:00 P. M.
SUPPER— (Informal) — Mezzanine
Floor, Fort Des Moines Hotel.
SPEAKERS—C. B. Mills, Moline, Il­
linois, president, “Organization of Past
Presidents and Ex-Councilmen of
IBA” , president IBA in 1901-1902, will
preside. Speaker of evening is the
Hon. U. S. Senator Owen Brewster
from Maine, “The America of Tommorrow.”

September 4, 9:00 A. M.
V.
W. Johnson, president IBA, Cedar
Falls; Invocation by Rev. Percy H.
Nickless, Des Moines; F. M. Morrison,
Des Moines, Address of Welcome; J. R.
Cornell, Spirit Lake, Response; H. Lee
Huston, Columbus Junction, presents
Ivory Gavel to President.
SPEAKERS — James A. Cummins,
deputy manager, Iowa War Finance
Committee, Des Moines; H. L. Horton,
Des Moines, one of the members of
the 7th Federal Reserve District Com­
mittee for Iowa of the National “ Com­
mittee for Economic Development”
who will introduce Ralph Budd, presi­
dent, Burlington & Quincy Railroad,
Chicago, and regional chairman for
the 7th Federal Reserve District of the
National “Committee for Economic De­
velopment”—“ Planning For the Fu­
ture” ; Mons. Camille Chautemps,
Washington, D. C., springs from one of
France’s great families; is one of
France’s illustrious citizens and states­
men, brilliant lawyer, temporarily in
this country to help liberate France
and work for the Allied Cause—
“France Yesterday and Tomorrow” ;
S. C. Kimm, Denver, Iowa, has been
asked to introduce his personal friend,
the next speaker; Rear Admiral W. B.
Young (SC) U. S. Navy, paymaster
general of the U. S. Navy, Washington,
D. C. The Admiral holds one of the
most important offices in American
Navy warfare and has had to travel
much in performing his official duties.
He will bring a wealth of interesting
Northwestern Banker

September 19ïb

I O W A
information—“ Supplying
Fleets.”

our

Battle

September 4, 12:15 P. M. - Luncheon
Both men and women registered at
the Convention will be luncheon
guests of the Des Moines Clearing
House Association in four dining
rooms on the Mezzanine Floor of the
Fort Des Moines Hotel.

September 4, 1:15 P. M.
First order of business, election of
new IBA Officers. An outstandingly
important session annually devoted to
“ Shop Talks” on still better Iowa bank
administration and operation; Session

N EW S

under auspices of “ Organization of Of­
ficers of County Bankers Associa­
tions” ; 24th year; W. W. Blasier, Jesup,
president; John D. Willard, Persia, vice
president; Greetings from President
V. W. Johnson; Theme of this session
is Considering Possible “ Post-War”
Banking Questions.
SPEAKERS — Joe L. Long, guest
speaker, executive secretary, Iowa
Taxpayers Association, Des Moines, an
organization doing fine and construc­
tive work—“ The National Hookup for
Taxpayer Protection” ; Hon. M. W.
Ellis, Iowa Superintendent of Banks,
Ili
¡I

J F

: I

«

.. .

:.-y---.*

Des Moines-—“ Greetings from the De­
partment of Banking, State of Iowa” ;
Frank C. Welch, Cedar Rapids, mem­
ber of new ABA “Post-War Small Busi­
ness Credit Commission” ; B. A. Bezoier, guest speaker, Rochester, Minne­
sota, widely known banking student—
“How To Handle Excess Activity in
Savings Accounts” ; R. R. Sehroeder,
Marengo, deep student on bond invest­
ments—“ How Many Bonds Should a
Country Bank Purchase?” ; J. W. Lipton, Jr., Arthur, another banker who
has set up a “ Farm Service Depart­
ment” in his bank will discuss “Why
Our Bank Set Up a ‘Farm Service De­
partment’ ” ; J. H. Boehmler, Hampton,
who has given much thought to explor­
ing Iowa land values—“ There is No
Land Boom in Iowa” ; Marshall Corns,
guest speaker, president, Marshall
Corns and Company, Chicago, manage­
ment engineers and consultants to
banks and bankers. Mr. Corns will
present a novel research in Iowa bank
study dealing with “Post-War” bank­
ing—“Preparing Your Bank For The
Future.”
Election of Iowa ABA Officers.

Headquarters of State Banking
Department

CLOSE

Parlor “D”—Mezzanine Floor, Fort
Des Moines Hotel, is provided for your
convenience, for such business con­
ferences as you may wish to have with
officials of the Department or with
members of the State Banking Board
or with their Examiners.

TO BOTH

IN D U STR Y AND AGRICULTURE

Caucus of Iowa A.B.A. Members
The customary A. B. A. caucus will
be held in the Palm Room, Mezzanine
Floor, Hotel Fort Des Moines, follow­
ing the close of the evening’s program
(at or about 10:00 p. m.), Sunday eve­
ning, September 3, 1944. All Iowa
A. B. A. members in attendance at the
Convention are urged to be present at
this annual caucus. It is at this caucus
that nominations are made for the
different Iowa A. B. A. Officers and
which nominations are then presented
for election at the annual meeting of
the Iowa A. B. A. members to come
the next afternoon, Monday, Septem­
ber 4th.

Located in the heart of the Union Stock Yards
and Chicago’s great Central Manufacturing
District, this bank has developed facilities
through serving both farmer and manufacturer
for over three-quarters of a century that make
it exceptionally qualified to act as Chicago
correspondent for middle western bankers.

LIVE S T O C K
B A N K o /'
( Established 1868)

UNION

STOCK

*

Sells Bank Interest

"

YARDS

. ..... - .........- M em b er F e d era l D eposit Insurance C o rp o ra tio n ——
————— ——

Northwestern Banker


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

September 19Ü

—— —

Announcement is made by H. C.
Moret, cashier of the Northwestern
State Bank, Orange City, Iowa, that he
and Herman Rowenhorst, vice presi­
dent, have purchased a majority of the
stock in the bank from W. S. Short,
president. No change is to be made in


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Federal Reserve Bank of St. Louis

89

ordial
Welcome
lo visiting Iowa hankers
Each year we anticipate the pleasure of
meeting old friends and making new
ones at the Iowa Bankers Association
convention.
We will all be looking forward to
seeing every one of you.

ALLEY
AVING
BANK

Frederick M. Morrison, President
Winfield W . Scott, Vice President
Edward P. Kautzky, Asst. Vice Pres.
Roy E. Huber, Asst. Vice Pres.
J. R. Astley, Cashier
Frank M. Thompson, Cashier
Ray Thompson, Asst. Cashier

D ES

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

C o rp .

Northwestern Banker

September lQbk

90
•
the officials of the bank, nor in the
management.
The Northwestern State Bank has
been in Orange City since 1882, and
Mr. Short has been associated with the
institution for more than sixty years.
Mr. Moret has been in the banking
business for the past 29 years, and 16
years with the Northwestern State,
and cashier for the past ten years. Mr.
Rowenhorst is a banker of 22 years
standing, the past seven with the
Northwestern State Bank.

I O W A

N E W S

•

Endorsed for Council

Retires Stock

At a meeting of the Scott County
Bankers Association, held last month,
a resolution was adopted endorsing R.
O. Byerrum, executive vice president
of the First Trust and Savings Bank
of Davenport, Iowa, for election to the
executive council of the American
Bankers Association at the meeting to
be held in conjunction with the Iowa
Bankers Association in Des Moines
this month.

The Coggin office of the North Linn
Savings Bank of Center Point, Iowa,
has retired all of its preferred stock.
The last part of it was paid off last
month by cash paid in by the stock­
holders, and not from the earnings of
the bank or from the sale of additional
stock. This, Rufus Sisler, vice presi­
dent, believes, is the only bank in the
seventh Federal Reserve district that
has ever paid off its preferred stock in
this way. We are now an honor roll
bank, with $50,000 capital, surplus and
undivided profits of $52,860, and depos­
its of $2,081,181,

OUR I OWA C O N VEN TIO N
This month all roads lead to the Iowa Bankers Annual
Convention in Des Moines. Most of us "A " card drivers
will leave the old buggy at home, and ride the trains,
but we'll be there as alw ays— and we hope to see you
there, too!
Like the Iowa Conventions, we believe First National
Bank service becom es better each year. Let us show
you how it can serve you in Sioux City!

A . G. Sam,
J. P. Hainer, Vice President
Fritz Fritzson, Vice Pres, and Cashier
J. T . Grant, Assistant Cashier

* * * *

President
J. R. Craning, Assistant Cashier
E. A . Johnson, Assistant Cashier
W . F. Cook, Auditor

/ ft á>/o U * C / fi/ * * *

Member F D IC — Member Federal Reserve System

Northwestern Banker

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

September 19

Candidate for Federal
Reserve Director
V. W. Johnson, president of the First
National Bank, Cedar Falls, Iowa, and
currently president of the Iowa Bank­
ers Association, some months ago an­
nounced himself as a candidate for
director of the Seventh District Fed­
eral Reserve Bank, to represent the
smaller rural banks—those with capi­
tal and surplus of less than $200,000.
Not only has Mr. Johnson held every
office the Iowa Bankers Association
has to offer, from Group secretary on
up, but he has done his full share in
civic, municipal and military activities.
He has been president of the Cedar
Falls Library Board, Chamber of Com­
merce and Rotary Club—has served
his city as treasurer, and secretary of
the board of education—and served 28
months in the First World War, being
discharged as a first lieutenant, and at
the present time is a major on the
general staff of the Iowa National
Guard.
Born on a farm in Franklin county,
Iowa, Mr. Johnson moved with his
parents to Cedar Falls in 1911, attend­
ing high school and Iowa State Teach­
ers College there, and later graduating
from the University of Minnesota. En­
tering the employ of the Citizens Sav­
ings Bank in Cedar Falls, he became
cashier in 1928, and after several merg­
ers into what is now the First National
Bank in Cedar Falls, he became execu­
tive vice president and then president,
his present position.
The many friends of V. W. Johnson,
in both the smaller and larger banks
throughout Iowa, consider him excep­
tionally well qualified to fill the office
and administer the directorship which
he seeks.

With Decorah Bank
Dorothy Loesch of Spillville, Iowa,
has taken a place with the Security

91

" I n the State Where

Corn
Is Prime Collateral
F or B a n k L o a n s
Picking, processing and marketing seed
corn and other seeds will be BIG BUSI­
NESS in Iowa in the months ahead . . .
calling again for extensive financing by
the Banks.
To obtain added safety and protection in
making seed corn loans . . . to permit
granting of larger lines of credit to worthy
borrowers . . . suggest to producers that
they make use of St. Paul Field W a re ­
housing Service.
For St. Paul Terminal W arehouse Receipts,
issued against seed corn inventories, no
matter where stored, are prime collateral
for Bank loans.
Without cost or obligation, GET THE
FACTS from our nearest office about our
proven method of converting inventories
of seed corn; soy beans; field seeds; frozen,
powdered or shell eggs; wholesale grocer­
ies; coal, lumber; iron and steel; canned
vegetables and manufactured goods into
sound banking collateral. Your inquiry
will receive immediate and courteous
attention.

W e ll Be Seeing You at the
Iowa Bankers' Convention . . .
T. S t a n le y J a c k s o n , m a n a g e r o f o u r F ie ld W a r e h o u s e d iv i­
s i o n , a n d T. C . C a n n o n , I o w a d i s t r i c t m a n a g e r , w i l l b e r e g ­
is te r e d a t H o te l F ort D e s M o in e s fo r th e I o w a B a n k e r s
C o n v e n t i o n , S e p t e m b e r 3 d a n d 4 th .
D r o p in to s e e t h e m .
T h e y 'l l w e l c o m e a n o p p o r t u n i t y to t a l k w i t h y o u a b o u t s a f e ­
g u a r d i n g l o a n s . . . i n c r e a s i n g p r o f it s in y o u r B a n k i n g
o p e r a tio n s .

fet. $aul terminal Mare^ouöe Co.


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

ST. PAUL, MINN.
— Iowa Office —

— Other Offices —

515 Iowa-Des Moines National Bank Building
DES MOINES
TELEPHONE 2-1208

MINNEAPOLIS MILWAUKEE CHICAGO DETROIT
INDIANAPOLIS
NEW YORK
BOSTON
PHILADELPHIA
PITTSBURGH
SYRACUSE
MEMPHIS ATLANTA CHARLOTTE ALBANY, GA.

T. C. CANNON, DISTRICT MANAGER
"The

only

company

engaged

in Field Warehousing with an office in Iow a"

Northwestern Banker

September 1944

92

Trust & Savings Bank, Decorah, Iowa.
She is a graduate of the Calmar public
schools.

Assigned to Duty
Pvt. Janet Lernen, Marine Corps
Women’s Reserve, daughter of E. B.
Lernen, cashier, and granddaughter of
Geo. B. Lernen, president of the Na­
tional Bank of Rockwell City, Iowa,
and who has assisted in the bank dur­
ing vacation periods from her college
work at Iowa State College, has been
assigned to duty at the El Toro, Cali­
fornia, Marine Air Base, having com-

• I OWA

NEWS

• -

pleted boot camp at Camp LeJeune,
North Carloina, and technical school
at the Naval Training Center, San
Diego, California.

a co-partnership with $10,000 of re­
sources, observed its diamond jubilee
anniversary recently, an anniversary
that finds it with total resources in ex­
cess of seven and one-half million dol­
lars.
Rotary President
W.
E. Hurley, cashier of Security Present officers and directors of the
State Bank, New Hampton, Iowa, was bank are: Fred Maytag II, chairman
elected president of the New Hampton of the board; Ray O. Bailey, president;
Rotary Club. He was to have taken L. B. Maytag, W. E. Denniston, D.
Wormhoudt, W. N. Enyart and E. M.
office last month.
Carey, vice presidents; A. E. Hindorff,
cashier; R. E. Vance, L. H. Macy, A. E.
Diamond Jubilee
The Jasper County Savings Bank, Peters, W. B. Quigley, George M.
Newton, Iowa, founded 75 years ago as Kruse, H. H. Morrison and Marie Van
Gilst, assistant cashiers. Directors are:
Fred Maytag, II, Mr. Bailey, L. B. May­
tag, Mr. Denniston, Mr. Wormhoudt,
Mr. Enyart, John E. Cross, Mr. Hin­
dorff and Mr. Vance.

Bankers Fete Key Farmers

S T . L O U IS 2, MISSOURI
Statement of Condition, June 30, 1944
RESOURCES
Cash and due from banks..................................................... $ 36,749,768.63
U. S. Government Securities................................................. 100,569,816.21
(Including those pledged $57,718,000.00)
Other Bonds and Securities................................................... 11,494,835.71
252,000.00
Federal Reserve Bank Stock.................................................
Loans and Discounts................................................................ 48,892,807.43
Customers' Liability on Acceptances and Letters of
Credit .....................................................................................
294,363.22
Real Estate ..............................................................................
930,981.20
Accrued Earnings Receivable (Net).....................................
553,101.68
Overdrafts ................................................................................
16,867.85
Other Resources ......................................................................
51,265.96
$199,805,807.89
LIABILITIES
6,000. 000. 00
Capital .......................................................................................
4.554.066.65
Surplus and Undivided Profits.............................................
Dividends declared, payable August 1st and Novem­
240,000.00
ber 1st, 1944..........................................................................
Accrued Interest, Expenses and Taxes Payable (Net)
1,465,873.76
and Other Reserves .........................................................
294,363.22
Acceptances and Letters of Credit.......................................
125.891.63
Other Liabilities ......................................................................
Deposits:
U. S. Government, and other
Public Funds .................................. S 41,846,559.16
Other Deposits .................................. 145,279,053.42
187,125,612.58

Northwestern Banker

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

$199,805.807.89

Bankers of Boone county, Iowa, en­
tertained about 47 of the key farmers
of the county at a chicken dinner re­
cently. The group, in addition to the
bankers, included the presidents and
directors of all the township farm bu­
reaus in the county, the county AAA
officers, Mr. Augustine, superintendent
of the Hemp plant, the high school
agricultural teacher from Ogden and
the personnel of the County Farm
Bureau Office.
The program included a talk by R.
H. Barber, president of the Citizens
National Bank, chairman of the Boone
County War Finance Committee. Carl
Malone, head of the economics depart­
ment of the extension service of Iowa
State College pointed out the dangers
of inflation of land prices which can
easily come with higher commodity
prices. T. N. Nelson, who recently
became Boone County Extension Di­
rector, reviewed some of the problems
the farmer had to face in producing
the food necessary for victory.
Warren Garst, cashier of the Home
State Bank of Jefferson and member of
the Agricultural Commission of the
A.B.A., concluded the meeting with a
short talk on banker-farmer coopera­
tion and assuring the farmers that the
bankers desired to be of the best pos­
sible service to them. The meeting
was presided over by C. W. Anderson
of Madrid, who is the key agricultural
banker for Boone county.

Takes Columbus
Junction Post
D.
R. Marshall, Sigourney, has been
elected assistant cashier of the Colum­
bus Junction State Bank. Columbus
Junction, Iowa.

September 19bb

93

Our

Through 42 years the Waterloo Sav­
ings Bank has been tested by time and
circumstance.
During those years of changing con­
ditions we have continued to operate
under the same charter, the sam e name,
and with our original capital intact!
Our service to BANKERS, however,

n

n

has changed regularly and is always

d

improving! It is changed constantly to
fit the growing needs and steady expan­

Year

sion of the Waterloo trade area which
we serve!
"W e 'll be seeing you Sept. 3-4
at the Iowa Convention"!

Officers
H. G. N orthey , President
R. W. W aite , Vice President
Carleton 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 chutte , Asst. Cashier

W A T E R L O O S A V IN G S
W a te rlo o , Iow a

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

BANK

M e m b e r F e d e r a l D e p o s it In s u r a n c e C o r p o r a t io n
M e m b e r F e d e ra l R e s e r v e S y stem

Northwestern Banker

September Î944

94
4

See Them A t the

Convention

Many Bankers from the Larger Cities in Surrounding States, and from New
York City, Are Planning to Attend the Wartime Conference
in Des Moines
ANY officers of the larger
banks, both within the State
and outside of Iowa, are plan­
ning to attend the 1944 Wartime Con­
ference of the Iowa Bankers Associa­
tion to be held in Des Moines Sunday
and Labor Day, September 3 and 4.
In addition to those representing
banks, many individuals connected
with institutions cooperating with and
serving the banking industry will also
attend.
A number of bankers from Chicago,
Kansas City, Milwaukee, Minneapolis,
New York, Omaha, St. Louis and St.
Paul have indicated they will come to
the convention to visit with their
Iowa constituents, and of course the
larger banks in Iowa and Des Moines
will be well represented.
Those who have indicated they will
be at the meeting in Des Moines are:

M

Cedar Rapids *
Merchants National Bank: S. E. Co-

quillette, president; H. N. Boyson and
Marvin R. Selden, vice presidents.
Peoples Savings Bank: Frank C.
Welch, president; Paul H. Huston, vice
president; Ervin F. Stepanek, cashier.

Chicago
American National Bank & Trust
Company: Charles C. Kuning, vice

president; J. H. Clarke, assistant vice
president; J. C. Wright, vice president
and cashier.
City National Bank & Trust Com­
pany: William H. Miller, vice presi­

dent; L. K. Billings, assistant vice
president.
Continental Illinois National Bank
& Trust Company: Norman B. Shaffer

and Lester T. Boe, vice presidents;
B. J. Maiworm, second vice president,
and Arthur J. Frey, assistant cashier.
l)i overs National Bank: George A.
Malcolm, vice president and cashier;
Frank M. Covert, assistant cashier.

First National Bank: Emil A. Stake,
vice president and cashier; John J.
Anton and John H. Grier, vice presi­
dents; V. L. Bartling, assistant vice
president.
Live Stock National Bank: A. S.
Bagnall and P. T. Betz, vice presi­
dents; R. Van Alstine, assistant cash­
ier.
Northern Trust Company: Charles
M. Nelson, vice president and cashier;
Lawrence A. Kempf, second vice pres­
ident, and Lester L. Siems, bond de­
partment.
DeLuxe Check Printers: John C.
Larsen, Iowa sales representative.
Scarborough & Company: Henry A.
Scarborough, president; Harry F. 01lendorf, Chicago, and Horace A. Smith,
Des Moines.

Clinton
City National Bank: Bruce Town­

send, vice president, and Emil Johannsen, assistant cashier.

Dependable Correspondent Service
STATEMENT OF CONDITION JUNE 30, 1944
ASSETS
C a s h o n H a n d a n d o n D e p o s it w i t h B a n k s ......................$ 5 ,6 4 9 ,4 9 7 .9 6
U n it e d S t a t e s G o v e r n m e n t S e c u r i t i e s ................................... 1 1 ,4 1 4 ,3 2 0 .2 3
B o n d s a n d S e c u r i t i e s .........................................................................
9 ,0 0 0 .0 0
L o a n s a n d D i s c o u n t s ..........................................................................
3 ,5 0 4 ,0 6 6 .3 4
S e c u r i t y B a n k B u il d i n g s , V a u lt a n d F i x t u r e s ..............
2 6 0 ,0 0 0 .0 0
F e d e r a l R e s e r v e B a n k S t o c k . ......................................................
2 3 ,5 5 0 .0 0
C u s t o m e r s L i a b i l i t y — L e t t e r s o f C r e d i t ................................
1 7 ,1 5 0 .0 0
O t h e r A s s e t s ...........................................................................................
3 ,7 7 0 .5 1
$ 2 0 ,8 8 1 ,3 5 5 .0 4

We place special emphasis on corre­
spondent bank relations because we
consider it a major element in our

L IA B IL IT IE S
C a p i t a l ........................................................................................................ $
5 0 0 ,0 0 0 .0 0
S u r p l u s ........................................................................................................
3 0 0 ,0 0 0 .0 0
U n d i v i d e d P r o fit s ......................................
4 5 ,7 7 2 .9 0
L i a b i l i t y — L e t t e r s o f C r e d it O u t s t a n d i n g ...........................
1 7 ,1 5 0 .0 0
D e p o s it s ...................................................................................................... 2 0 ,0 1 8 ,4 3 2 .1 4

business.

$ 2 0 ,8 8 1 ,3 5 5 .0 4

D IR E C T O R S
P a u l B e k in s
G eorg e L . B ooth
C h a r le s R . G o s s e t t
H a r o ld A . J a c o b s e n

O F F IC E R S

C EC U Rm /

O tis P . G a r ris o n
H a rry P . P ra tt

D a n i e l B . S e v e r s o n , A s s t . C a s h ie r

OFSioux Cits?
Member Federal Deposit Insurance Corporation

Northwestern Banker September 19'i 'i

F r a n k H . A b e l, A s s t . C a s h ie r
A l v i n G . N e ls o n , A s s t . C a s h ie r
R o b e r t W . L e w i s , A s s t . C a s h ie r

E d w a r d C . P a lm e r


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

B . M . W h e e lo c k , V ic e P r e s id e n t
A lb e r t C. E c k e r t , V ic e P r e s id e n t
R . E a r l B r o w n , C a s h ie r

W m . W . M a c fa r la n e
J u le s T . M a r t in

C h a r le s R . G o s s e t t , P r e s i d e n t

7

i

95
Iowa City
Iowa State Bank & Trust Company:

Ben S. Summerwill, president; M. B.
Guthrie, cashier, and W. F. Schmidt,
assistant cashier.

Kansas City
City National Bank & Trust Com­
pany: James F. McPherson, cashier,

and Tom Collins, publicity director.
Commerce Trust Company: Fred B.
Brady, vice president, and Richard L.
Dunlap, assistant vice president.

Milwaukee
First Wisconsin National Bank: Don­

ald A. Harper, assistant vice president.

Minneapolis
First National Bank: J. J. Maloney,

assistant cashier.
Northwestern National Bank: Don
E. Crouley, assistant vice president.

The Paths o f Peace
Before long we will again be traveling the paths of
peace.
The goal of victory will have been reached.
But, banking which does not need to be "reconverted
for peace time operations" will be ready and willing to
serve its customers and its community, in peace as it has
in war.
And, "Southern Iowa's Largest Bank" will continue to
give its best assistance and cooperation to its correspond­
ent banks, based on 66 years of close personal contact with
the needs and requirements of these banks and officers
who guide them.

New York
Central Hanover Bank & Trust Com­
pany: F. M. Hampton, assistant secre­

tary.
Chase National Bank: Roland C. Ir­
vine, vice president; Earl R. Gafford,
second vice president, and Louis Ja­
coby, Chicago correspondent.
Continental Bank & Trust Company:

Mark Peck and Eugene L. Voss, vice
presidents.
Guaranty Trust Company: H. Liv­
ingston Schwartz, Jr., assistant treas­
urer.
Manufacturers Trust Company: Ray­
mond' A. Lockwood, vice president,
and William B. Whitman, assistant
secretary.
Public National Bank & Trust Com­
pany: Daniel F. O’Meara, vice presi­

dent, and John T. Barry, assistant vice
president.

Omaha
First National Bank: C. D. Saunders,

vice president, and E. F. Jepsen, as­
sistant cashier.
Five Stock National Bank: Alvin E.
Johnson, president; Henry C. Karpf,
R. H. Kroeger, Paul Hansen, W. Dean
Vogel and H. H. Echtermeyer, vice
presidents; L. V. Pulliam, C. G. Pear­
son and Earl R. Cherry, assistant
cashiers.
Omaha National Bank: R. R. Ridge
and J. A. Changstrom, vice presidents,
and A. J. Rhodes, assistant cashier.
Stock Yards National Bank: W. A.
(Turn to page 98, please)

Banks Sold o r Bought!
quietly, quickly and in a personal manner

JAY A. WELCH

Member Federal Reserve System
Member Federal Deposit Insurance Corporation

in [K hun TRImi ir
n
u
[IIII
111)11\\ IÍMft ÂI¡1 1 JòJ ll
OTTUMWA, IOW A
OFFICERS
F R A N K V O N SCH R A D E R , Chairman o f Board and President
H. L. P O L L A R D , V ice President
W . C. M IL L E R , Assistant Cashier
R . W . F U N K , V ice President
FRED D IM M ITT, A ssistant Cashier
M A X V O N SCH R A D E R , V .-P res. & Cashier
F R A N K M. P O L L A R D , A sst. Cashier
C. P. GLEN N , A ssistant Cashier
C. G. M E R R IL L , Trust Officer
J. C. B L A C K F O R D , M anager Budget Loan Departm ent

Southern Iowa's Largest Bank

B A N K BROKER
Haddam, Kansas

TO TAL RESOURCES OVER $14,000,000

“ 36 Years Practical Banking Experience”


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Federal Reserve Bank of St. Louis

Northwestern Banker September 19bb

96
Advertisem ent

"Ro ll

Honor " Banks

of

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 S U R P L U S and U N D IV ID E D P R O FIT S equal to or greater than its capital
.

.

.

I

O

W

A

.

.

.

The hanks 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
batiks 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.
SURPLU S

TOW N

BANK

Ackley................................ Ackley State Bank.......................................

O F F IC E R

C A P IT A L

S. L e k w a ..................................... ..... $

50.000

P R O F IT S
$

57,000

Anamosa........................... Citizens Savings Bank.................... .............

...L e o J. W e g m a n ..............................

Andrew............................... Andrew Savings Bank................................. .

....E b e r V . F lin t...................................

25,000

35,102

Arlington....................... ...American National Bank............................

...O p a l A . L u ce..................................

25,000

46,143

Aurelia............................... First Trust & Savings Bank...................

...H . H . D e y lo ff...................................

25,000

63,652

Austinville........................ Austinville Savings Bank...........................

,,..S . L . P a tte r so n ................................

20,000

31,793

60,000

83,302

Baxter........................... .....State Savings Bank.......................................

...W . L . P h illip s...................................

Boone..................................Citizens National Bank......................

...E . E . W ie m e r ................................... .....

Burlington.........................Burlington Savings Bank..................

....W . H . S w ile r............................... ...... .....

100,000

304,103

Burlington........................ Farmers & Merchants Savings Bank___

...H . E . S im on ..................................... .....

125,000

127,419

Cambridge....................... Cambridge State B ank....................

...H a r r y C a ir n s ...................................

25,000

26,780

Cantril............................... State Savings Bank................................ ......

...B , C. C a sa d y .....................................

25,000

36,679

Cedar Rapids................... First Trust & Savings........................

...F r a n k J. D v o ra k .......................... . .....

100,000

102,469

Centerville........................Centerville National Bank.........................

...S . H . M eh rh off........................... .

100,000

113,448

Charles City.................... First Security Bank & Trust Company..

...W . A . H e rb re ch tsm e y er............. .....

100,000

156,067

50.000

61,138

100,000

112,805

Clarence............................. Clarence Savings Bank......................

...A r n o ld R u th er ..............................

25,000

67,737

Colfax.................................First National Bank..........................

...H . E . B e ll..........................................

50,000

64,818

Coon Rapids.................... Iowa Savings...................................................

... W a lte r Buenneke .................... .

25,000

35,350

Council Bluffs................. City National Bank.......................................

....Ir a L . H a y s ........................................ .....

150,000

319,409

Council Bluffs..................Council Bluffs Savings Bank...................

...E . H . S p e tm a n __________________

150,000

435,000

Council Bluffs..................State Savings Bank..................................... .

....J am e s C. Jenson............................ .....

100,000

136,426

Denison.............................. Crawford Co. Trust & Savings Bank......

....H . E . Q u alh eim .............................. .....

100,000

142,000

Des Moines....................... Bankers Trust Company...........................

....F . C. A tk in s ..................................... .....

1, 000,000
F . M . T h om p so n .............................. .....
200,000

1,521,150

Des Moines....................... Valley Savings Bank................................... .

424,974

Donahue............................. Donahue Savings Bank.............................

....W a lt e r E . P a u s t ia n .......... .........

30,000

40,195

Donnellson........................Citizens State Bank................................... ...

....R . L. S ch m itt...... ............................

25,000

51,618

Dubuque............ ................Dubuque Bank & Trust Co........................

....G eo . F . J a n s e n ........................... . .....

100,000

139,000

Dubuque............................ First National Bank....................................

. ..J. V . K e p p le r................................... .....

300,000

514 ,3 84
62,611

Dyersville.......................... Dyersville National Bank...........................

A . W . B ird ..................................... .

50,000

Exira............. ..................... Exchange State Bank..................................

...C . K . C u llin g s...................................

25,000

36,138

Fairfax.............................. Fairfax State Savings Bank.....................

....J . L , K r a ll..........................................

25,000

31,926

Grand Mound.................. Union Savings Bank.....................................

....L . J. S to te sb e r y .............................

Grinnell..............................Poweshiek County National Bank______

...R . S. K in se y ...................................... .....

25,000

39,506

100,000

101,339
19,000

Hornick..............................State Savings Bank.....................................

...E . S. F itz g e r a ld .......................... .

15,000

Humeston..........................Citizens State Bank..................................

...G eo . R. G a rto n ................................

25,000

33,000

....E . F . S o r g ......................................... .....

100,000

133,348

Indianola........................... Peoples Trust & Savings Bank....... .......

...M . F . H end erson............................ .....

100,000

150,101

Ireton................................. Security Savings Bank................................

...G , T . J u f fe r .....................................

15,000

30,125

Knoxville...........................Community National Bank & Trust Co.

....E d M . B utterfield...........................

50,000

171,064

Lansing..............................Kerndt Bros. Savings Bank........................

...G . M . K e rn d t................................ .

Independence................... Farmers State Savings Bank.....................

30,000

57,711

Laurens............................. Laurens State Bank.........,............................

.E . B. P an n k u k ............................... .

50,000

58,505

Livermore......................... Livermore State Bank..................................

....J . F . H a m m ______________________

25,000

29,487

Northwestern Banker

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

September 19'ib

97
Advertisement

"R o l l

of

H o n o r " Ba n k s

It is an honor to be listed among the HONOR ROLL BANKS. It indicates that the
bank has SURPLUSandUNDIVIDEDPROFITS equal to or greater than its capital
... I O W A ...
T h e hanks listed on this p a g e are som e o f Io w a s ou tstan d in g " H o n o r R o ll

Banks.

ca refu l m an a gem en t and sou nd hanking th e y have a ch iev ed this en v ia b le p o sitio n .

By

T h ese

banks w ill he e sp ecia lly glad to hand le any c o lle c tio n s , sp ecia l cred it re p o r ts or o th er
business in th eir co m m u n ities w h ich y o u m a y en tru st to th em .

TOWN

BANK

Manchester....................... Farmers & Merchants Savings Bank.
Marshalltown............ ...... Fidelity Savings Bank
Mason City....................... United Home Bank & Trust Co...........
Maynard...........................Maynard Savings Bank ..........................
McGregor.......................... First State Savings Bank
Moorhead.......... ............. Moorhead State Bank
Mt. A yr............................. 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..................................
Oakland............................. Oakland Savings Bank...........................
Oelwein............................. First National Bank...............................
Onslow............................... Onslow Savings Bank.............................
Orange City......................Northwestern State Bank......................
Oskaloosa..........................Mahaska State Bank................................
Ottumwa............................ Union Bank and Trust Co.....................
Parkersburg..................... Parkersburg State Bank........................
Pella............................. ...... Marion County State Bank....................
Pella................................ Pella National Bank ..............................
Rake............................ ....... State Savings Bank.................................
Readlyn.....................
Readlyn Savings Bank............................
Red Oak............................ Houghton State Bank..................
Ricketts.......................
Farmers Savings Bank..........................
Sac City............................. Citizens Savings Bank.... ...................
Sac City............................ Sac City State Bank................................
Schleswig____ _____ ____Farmers State Bank---------------Scranton.................... .... Security Savings Bank...........................
Shelby............ .................... Farmers Savings Bank...........................
Sheldon.............................. Security State Bank............. ..................
Sioux City.—....................Woodbury County Savings Bank........
Soldier................................Soldier Valley Savings Bank.................
Stratford........................... The Farmers Savings Bank..................
Strawberry Point........... Union Bank & Trust Company............
Toledo............ .................... National Bank of Toledo..... ...................
Traer.................................. Farmers Savings Bank............................
Union................................. Union-Whitten State Savings Bank
Waterloo............... .............National Bank of Waterloo........... ......
Waterville........................ Farmers & Merchants Savings Bank
Waukon........... ........ .......-Waukon State Bank.................................
West Union......................First National Bank ...............................
Williamsburg__ ___ ____ Farmers Trust & Savings Bank. .......
Winterset______ ____ ___ Union State Bank.......................... .....
Woodbine___ _____ _____ ..First National Bank ...............................


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

C o r r e s p o n d e n c e is in vited.

OFFICER
W. W. Matthews....
E. H. Nyce........ .
R. A. Potter...........
L. H. Buenneke.....
J. J. Goheen...........
J. Ray Hubbard.....
Carson Williams ...
C. A. Edmonds.......
.L. R. Bassett.........
O. H. Hothoven.....
Ray O. Bailey........
D. F. Busse.............
W. L. Spencer.........
.M. C. Hanson.........
.Geo. H. Paulsen.....
.H. C. Moret...........
.H. H. Williams.......
.Max von Schrader...
.0. A. Bailey...........
. R. J. VerMeer.......
.C. Smorenberg.....
.Johnnie Rake .......
.Aug F. Meyerhoff..
.Oscar Helgersen ....
,P. H. Claussen.......
.J. P. Jones..............
.A. O. Anderson.....
.H. A. Klotz............
.Edw. F. Buenneke.
.L. O. Stoker..........
. R. A. Schneider.....
.C. T. McClintock....
.D. H. Halverson....
.E. J. Johnson........
.G. E. Dunfrund.....
.Asa Thomas ........
.W. A. Moeller........
.C. F. Long.............
R. L. Penne............
C. V. Nelson..........
,C. H. Megorden....
,C. W. Grimes........
.0. E. Jones............
.H. L. Pauli............
,.S. R. DeCou..........

CAPITAL
..$

75,000
1 0 0 ,0 0 0

..

1 0 0 ,0 0 0

25.000
2 0 .0 0 0

30.000
30.000
125.000
50.000
25.000
100.000
40.000
35.000
50.000
2 0 .0 0 0

...

...

65.000
100,000
300,000
25.000
25.000
50.000
2 0 .0 0 0

25.000
...

100,000
30.000
40.000
50.000
75.000
25.000
25.000
50.000

...

100,000
2 0 .0 0 0
2 0 ,0 0 0

...

40.000
80.000
40.000
25.000
250,000
25.000
80.000
50.000
50.000
50.000
50.000

SURPLUS
PROFITS
$ 109,000
258,813
127,462
31.000
68,175
47.000
70,071
161,191
1 1 2 ,0 0 0

60.000
354.000
58,627
66.500
142,350
44,334
92.000
146,500
440,905
63,715
32,040
100,648
21.500
29,853
131,622
33.000
60.000
83,165
1 0 0 .0 0 0

29,122
58,359
70,357
234,121
50.000
28,309
105,000
97,145
48,134
39.000
488,272
29,545
111,916
55,448
92.000
54.500
147,937

Northwestern Banker September Î944-

98

Iowa Convention Committee Chairmen

F R E D E R IC K M . M O R R ISO N
President Valley Savings Bank
Convention General Chairman

J. R O Y CAPPS
Vice Pres., and Cashier, Central National Bank
Chairman Automobile and Transportation

I N HIS position as president of the
I Des Moines Clearing House Asso­
ciation, Frederick M. Morrison, presi­
dent of the Valley Savings Bank, is
also chairman of the executive commit­
tee of Des Moines bankers in connec­
tion with the 58th annual convention
of the Iowa Bankers Association.
Serving on the executive committee
with Mr. Morrison are the presidents
of all Des Moines banks in the Clear­
ing House Association,
As pictured here, J. Roy Capps, vice

president and cashier of the Central
National Bank, and R. L. Chase, assist­
ant vice president of the Iowa-Des
Moines National Bank, head the trans­
portation and hotels committees, re­
spectively. During normal times there
are a number of other committees of
Des Moines bankers active in connec­
tion with the convention, but with
convention entertainment eliminated
for the duration, an elaborate set-up of
committees is unnecessary.

R. L. CH ASE
Asst. Vice President, Iowa-Des Moines
National Bank & Trust Co.
Chairman Hotels and Reservations

SEE TH E M A T THE
C O N V E N T IO N
(Continued from page 95)
United States National Bank: Austin

L. Vickery, cashier, and Nels L. Sholin, assistant cashier.

Ottumwa
Union Bank & Trust Company: H.

L. Pollard, vice president, and Max
von Schrader, vice president and cash­
ier.

St. Louis

IO W A STATE BANK

First National Bank: Frank Fuchs,

assistant cashier.

Des Moines, Iowa

Mercantile-Commerce Bank & Trust
Company: Leo D. Kelly, vice president;

— w e lc o m e s tlie b a n k e r s o f Io w a to th e State C o n v e n tio n in

Edward E. Marshall, assistant cashier,
and John F. Wilkinson, sales manager
investment division.

D e s M o in e s a n d e x te n d s a c o r d ia l in v ita tio n to v isit o u r n ew

Mississippi Valley Trust Company:

W. J. Hein, vice president, and Carl
M. Hook, Jr., assistant secretary.

a n d e n la r g e d h a n k in g q u a rte rs.

WE ARE GROWING

St. Paul

Total Deposits June 30, 1944......................................... $3,171,000

St. Paul Terminal Warehouse Com­
pany: T. Stanley Jackson, manager

O v er 5,000 N etv C ustom ers

Three Years Old April 16, 1944
One of Iowa’s Most Progressive Banks

Sioux City

DIRECTORS
W m . A. Broquist
George O’Dea

G. A . Frampton

Northwestern Banker September 19Ü

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

field warehousing division, and Thom­
as C. Cannon, district manager, Des
Moines.
American National Bank: G. J.
Johnson, vice president.

Hugh N. Gallagher
A. E. Sargent

A. G. Sam,
president, and Fritz Fritzson, vice
president and cashier.
Live Stock National Bank: Carl L.
First National Bank:

99

Fredricksen, president, and Mark A.
Wilson, vice president.
Security National Bank: C. R. Gos­
sett, president; B. M. AVheelock, vice
president; A. G. Nelson, assistant cash­
ier, and R. W. Lewis, auditor.
Toy National Bank: R. R. Brubacher, president, and E. E. Erickson, vice
president and cashier.

A Service You Can U s e ...
O r R e c o m m e n d ...

Waterloo
National Bank of Waterloo: Charles
L. McKinstry, vice president; <R. L.

Penne, cashier, and A. J. Burk and
H. F. Hoffer, assistant cashiers.
Waterloo Savings Bank: R. W.
Waite, vice president; J. J. Miller,
cashier, and V. Spaulding Miller, as­
sistant cashier.

A lb ia Banker Dies
J. A. Canning, 69, Albia banker for
23 years and president of the Peoples
National Bank and Peoples Savings
Bank when he retired in 1935, died at
his home in Albia, Iowa, recently.
Mr. Canning joined the Peoples Na­
tional Bank and Peoples Savings Bank
in 1912 as cashier. He was elected
president of the banks in 1920 and
served as head of both institutions for
five years until his retirement. He
was a member of the Iowa Bankers
Association.

with CONFIDENCE!
Y

_1_ O U m a y h a v e a fa r m m a n a g e m e n t p r o b le m in y o u r

b a n k — o r y o u m a y h a v e c u sto m er s w h o o w n fa r m s in Io w a
o r N e b r a s k a a n d n eed a su p e r v iso r y serv ice th a t w ill in su re
t

th e m a m a x im u m in c o m e fr o m th e ir p r o p e r tie s.

On

th e o n e h a n d

y o u r b a n k w ill p r o fit b y

u sin g the

serv ices o f th e F a r m e r s N a t io n a l C o m p a n y — o n th e o th e r ,
it w ill p r o fit in g o o d w ill b y r e c o m m e n d in g th o se services

C ashier a t W e v e r
Loren I. Peel, New London, Iowa,
for two and one-half years employed
at the Iowa Ordnance Plant, has ac­
cepted the cashiership of the Farmers
Savings Bank at Wever, which bank
has total resources of nearly a million
dollars. Mr. Peel expects to take the
new position about the first of this,
month.

to y o u r fa r m -o w n in g c u sto m ers.

B u t . . . d o n ’ t ta k e o u r u n s u p p o r te d w o r d f o r it.
is a v a ila b le .

PROOF

G e t and e x a m in e th e e v id e n c e th a t d e m o n ­

strates h o w o r g a n iz e d , b u sin e ss-lik e fa r m m a n a g e m e n t—

A .

In c re a se s s a tisfa c tio n in fa r m o w n e r s h ip ;

B.

R e su lts in g reater p r o d u c tio n an d b ig g e r r e n t a ls ;

C.

M akes B E T T E R F A R M S ;

D .

In c re a se s b a n k d e p o sits in y o u r c o m m u n ity .

Banks Reduced
Tama county had 23 banks in 1924,
according to a table published at the
time. There are but nine banks in
the county now.
The 23 Tama banks 20 years ago had
total deposits of $9,934,000. The nine
banks of that county on the first of
the month had deposits amounting to
$12,800,000.
In 1924 Grundy county had 15 banks
in operation. Their combined deposits
were but a little more than one-half
as much as the seven banks now oper­
ating in the county had on deposit on
the first of the month of this year.

W r ite

fo r

a cop y

o f th e

b o o k le t, “ Su ccessfu l F a r m in g

fo r

A b se n te e O w n ers” — w h ic h tells in d eta il b o w h u n d re d s o f Iow a
and N eb ra sk a fa r m ow n ers are so lv in g th eir fa r m -o w n in g p r o b ­
le m s w ith c o m p le te sa tisfa ction .

Farmers National Company

R a tio n e d , T o o

Lady (in restaurant): Why don’t
you shoo your flies?
Waiter: Wal, it’s so hot today I
thought I’d let ’em run around bare­
foot.

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

D ES M O IN E S O F F IC E :

O M A H A O F F IC E :

2 0 4 W a ln u t B ld g .

38 8 B ra n d e is T h e a tre B ld g .

Northwestern Banker

Septem ber 1944

100

G o A fte r Savings Accounts Now
(Continued from page 76)
GOO to approximately 50,000,000 since
1940, while savings deposits have
grown from $25,750,000,000 to $32,600,0 0 0 ,0 0 0 .

War Has Helped
The war effort has played a large
part in reawakening the savings in­
stinct, which had previously been in­
terrupted by the philosophy of spend­
ing. Since saving is a habit and is
now so deeply instilled, it is a reason­
able assumption that it can be nur­
tured and made to grow more than

7

Year

5

t

h

o f Service

In Mason City and North Iowa
OLD........ In Experience, In Tradition, In Friendships
YO U N G ....................................................................In Outlook

Statement of Condition August 1, 1944
RESOURCES
L o a n s a n d D isc o u n ts...........................................................................$ 2 ,6 9 9 ,2 7 6 .2 0
O th e r B o n d s a n d S e c u ritie s...........................................................
1 ,1 2 4 ,2 6 5 .1 5
B a n k B u ild in g , Furniture a n d F ixtu res.................................
2 6 7 ,7 5 9 .7 1
O th e r R e a l E state O w n e d ................................................................
5 .0 0
Interest e a r n e d but not c o lle c te d .................................................
7 0 ,9 8 7 .7 3

United States Bonds..............................................................
Cash and Exchange...................................................
T o ta l

9,572,850.65
3,385,178.90

...................................................................................................$ 1 7 ,1 2 0 ,3 2 3 .3 4

rV

offer a new investment opportunity in
the form of defense bonds, which could
be purchased in small denominations.
After Pearl Harbor, the same oppor­
tunity was offered through the sale of
War Bonds. The American saver has
taken advantage of this opportunity to
the extent of almost $23,000,000,000.
Notwithstanding this fact, he has re­
sumed the practice of making regular
and systematic savings deposits, evi­
denced by the fact that total savings
depositors have increased from 45,791-

ever before. Eventually the war will
be won, and if the banks of the coun­
try have planned their program well
there will be tremendous sums avail­
able for savings deposits. If not, it is
reasonable to assume that the Federal
government will continue to offer some
form of attractive investment designed
for the small saver. Undoubtedly it
will not be as convenient as a savings
account, and certainly it will rob the
banking system of a valuable public
relations outlet, reasonable and desir­
able income from the reinvestment of
accumulated sa v in g s deposits, and
other potential business.
Savings depositors are an important
link in the banking chain. They feed
business into every other department,
as well as provide funds with which to
seek acceptable loans and investments,
which because of their term, bear a
higher rate of interest. Moreover, the
owners of fifty or sixty million savings
accounts are a major source of the
good will on which the prosperity of
the banking system must ultimately
rest.
Recent trends indicate that banks
are losing their position of leadership
in the savings field. In the two years
prior to June 30, 1941, the private in­
vestment in shares of insured savings
and loan associations increased by 47
per cent; savings deposits in the postal
savings system increased by 3 per
cent, while savings in banks increased
only 3.7 per cent. From June 30, 1941,
to December 31, 1943, privately owned
shares in insured savings and loans
associations showed a further increase
of 46 per cent; postal savings deposits,
38 per cent, and savings in banks, only
19 per cent. This situation is too seri­
ous to be ignored. If people cease to
regard banks as the leading exponents
of thrift and the principal custodians
of their savings, the consequences may
be far-reaching.

■V

K

Now Is the Time

LIABILITIES

Any
C a p ita l a n d S u r p lu s...........................................................................
7 7 7 ,0 0 0 .0 0
U n d iv id e d Profits a n d R e s e r v e for C o n tin g e n c ie s ........................................ 2 2 8 ,9 4 1 .8charge
0
Total Capital Accounts............................................... $ 1,005,941.80
O th e r R e s e r v e s .....................................................................................$
Interest C o lle c te d but not e a r n e d ..............................................

5 9 ,7 8 1 .2 9
15 ,7 0 8 .3 9

DEPOSITS............................................................................... 16,038,891.86
T o ta l

.................................................................................................. $ 1 7 ,1 2 0 ,3 2 3 .3 4

First National Bank
of
MASON CITY, IO W A
Founded in 1869
Member Federal Deposit Insurance Corporation

Northwestern Banker


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

Septem ber

bank that truly wants to dis­
its obligation to the community
and to the nation should now begin
aggressively to solicit savings deposits.
Passive solicitation is not the answer

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

i

39 So. La Salle Street, Chicago
Cost System s - A ccou n t A n a ly sis P rocedures
Directors Exam inations
M anagem ent Surveys

y

101

For your many fitte orders for

R A T IO N

B A N K IN G

FORM S

and

I. B. A. S T A N D A R D FORM S
•

\ T OUR business is very much

appreciated and we have

endeavored to give your orders prompt and careful attention.
W e join with the Des Moines banks and busi­
ness houses in welcoming you to Des Moines
for the
58th ^Annual Convention
9 cmami iìa ^ ik e/iA

A óA xtcia ttim

September 3rd and 4th
1944

l


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

PRINTING

•

BINDING

•

1912 Grand Avenue
Printers

of

the

N orth w estern

ENGRAVING

DES MOINES 5, IOWA
B anker

for

More

than

Thirty-five

Years

Northwestern Banker

Septem ber 19'tb

102

—they must be sought aggressively
through a properly designed advertis­
ing program, conducted on a regular
and systematic basis.
A study made in our bank over a
four-year period offers conclusive evi­
dence that the incidence of new ac­
counts, closed accounts, and deposit
totals is directly related to the adver­
tising program. During the early part
of the period under study, the adver­
tising was neither regular nor syste­
matic. Frequently, considerable sums
were spent over a period of a month
or two—always to be followed by a
period of increased new accounts, de­
creased closed accounts, and an in­
crease in total deposits. With a tem­
porary discontinuance of advertising,
the number of new accounts invariably
dropped off, while the number of close­
outs increased. By leveling out the
advertising appropriation and rede­
signing the program, a constant in­
crease in business resulted.
Every bank and trust company now
has a great opportunity to help deter­
mine the shape of things to come. As
we have encouraged thrift in the past,
we must encourage it now and in the
future. Savings business may not be
essential to the success of an individual
bank, but surely it cannot be denied
that it is essential to the future of
American banking, simply because its

Welcome
to
Iow a

Bankers

( ^ r e e

t i

future is dependent upon the future of
the country.

Sells Bank Stock
B. P. St. John has sold his stock in
the First State Bank of Webster City,
Iowa, to J. J. McQuire and has re­
signed as cashier and director.
The board of directors will promote
Lorenz A. Horn to cashier. Members
of the board are Edward P. Prince,
president; H. F. Price, Lorenz A. Horn,
H. D. Blue, F. L. Schweppe and E. W.
Garth. A new director will be elected
to succeed Mr. St. John.
He came to Webster City from Rock
Rapids with J. J. McQuire in 1935
when the two of them and Mr. Prince
organized the First State Bank and
became its principal stockholders. The
bank was opened October 15th of that
year with Mr. St. John as cashier, a
position he has held until now.

Promoted
W. H. Steinbruch, who has been a
teller at the First State Bank, Webster
City, Iowa, for the past four years,
has been promoted to the office of as­
sistant cashier, following a meeting of
the board of directors of the bank last
month.

g

THE

IOWA

BANKERS

B A N K D IR E C T O R Y

Let's make our 1944 Annual Convention our best meeting in
history!
Let's show the world that no business group in
America is contributing more to the War Effort than the bankers
of this country!

Let's Work For Victory— At Our Convention!
DIRECTORS:
Dr. E. M . MacEwen, Dean of College of Medicine, State University of Iowa
R. J. Baschnagel, Ohio National Life Ins. Co. Farm Loan Supervisor
George A. Thompson, Retired
*W . W . Summerwill, Vice President
M. B. Guthrie, Cashier
Guy A. Stevens, Farmer
Ben S. Summerwill, President

OFFICERS:
Ben S. Summerwill, President
Dr. E. M . MacEwen, Vice President
M. B. Guthrie, Cashier
*W . W . Summerwill, Vice President
W . F. Schmidt, Assistant Cashier
M . E. Taylor, Auditor

IOWA STATE BANK
& TRUST COMPANY
Iowa City, Iowa
Member Federal Deposit Insurance Corporation
* N o w s e r v in g in th e A rm e d F o r c e s o f th e U . S.

'N orthwestern Banker

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Federal Reserve Bank of St. Louis

S eptem ber Í9 4 4

ISSUED — MARCH — SEPTEMBER

★
L in k in g th e F in a n c ia l W o r ld
fo r a H a lf C en tu ry
★

R. L. POLK & CO.
Publishers
ESTABLISHED 1870

431 Howard St.

Detroit 31, Mich.

IO:
•
C hange in S ta ff
James E. Clave is leaving his posi­
tion as teller of the Commercial Trust
and Savings Bank, Storm Lake, Iowa,
to take over his own business in Blue
Earth, Minnesota, where he will oper­
ate a real estate, insurance and ab­
stract company.
Mr. Clave is being succeeded at the
bank by Alvin J. Barta.

O v e r Billion Dollars
Deposits in Iowa chartered banks ex­
ceeded a billion dollars for the first
time in the history of the state on
June 30th, Melvin W. Ellis, state super­
intendent of banking, states.
The total of $1,038,660,323 deposits
shown in the consolidated report of
the condition of 542 banks was an in­
crease of more than a quarter billion
since the same date in 1943.

I O W A

J. E. Brady of Akron, Iowa, began
his duties as cashier at the First State
Bank, Mapleton, Iowa, last month. He
succeeds Orval Spahn who is now sta­
tioned with the Army at Camp Hood,
Texas.
Mr. Brady has been employed for
the last 15 years at the Akron Savings
Bank.

Elect President and D ire c to r
Fred Meyerholz was elected presi­
dent of the State Bank of Wapello,
Iowa, to fill the unexpired term of G.
Keck, deceased, and Guy Hardman
was elected director to fill the vacancy
on the board left by Mr. Meyerholz.
Mr. Meyerholz has been a bank direc­
tor for many years.

W a u ko n Banker Dies
Frank Klees, 70, well known Wau­
kon business man and bank official,
died at his home last month.
In 1919 he entered the Waukon State
Bank, Waukon, Iowa, as assistant
cashier. In January he was promoted
from vice president to executive vice
president.

C o n fe re n c e Room
At the Security State Bank, Hub­
bard, Iowa, a few minor changes are
being made in the interior to provide
room at the front of the bank for a
customer conference room. V. H. Reid
is president and W. J. Schwendemann,
cashier, of the bank.

Broken Leg
Nettie E. Freie, assistant cashier of

•

Iowa, is convalescing as the result of
a broken leg.

H eads Sioux C ity A .I.B .
John R. Graning, assistant cashier
of the First National Bank, Sioux City,
Iowa, has been elected president of the
Sioux City chapter of the American
Institute of Banking for the 1944-45
term. Other officers chosen are: K. A.
Scheibe, vice president, and Kinley
Smith, secretary and treasurer.
The board of governors includes
Elvin G. Nelson, retiring president;
Allison R. Miller, Leonard C. Lamar

and Carleton C. Van Dyke.
The institute conducts courses in
banking procedure and for the past
season the instructor was Fritz Fritzson, vice president of the First Nation­
al Bank.

U p 16 Per C e n t
Bank debits reported from larger
Iowa cities increased 16 per cent dur­
ing the first half of this year, compared
with the same period last year, it was
reported by the Iowa Business Digest,
prepared by the college of commerce,
State University of Iowa.

IOW A BANKER WRITES . . .
"D u r in g the m o n th of M A Y
($487.00).

M a p le to n C ashier

NEWS

w e s o ld 48 7

'P A Y C ' C H E C K B O O K S

261 N E W A C C O U N T S W E R E O P E N E D of w h ic h 136 w e re

'P A Y C '. "
The

"P A Y C "

P A Y -A S -Y O U -C H E C K

SYSTEM

is

the

o rig in a l

M I N I M U M B A L A N C E C H E C K IN G A C C O U N T P L A N in I o w a .
of 20 c h e c k s a re s o ld for $ 1 . 0 0 - $ 1 . 2 5

or $ 1 .5 0 .

F le x ib le

NO

B oo k s
to m e e t

Y O U R B A N K S in d iv id u a l co st o f a c c o u n t.
W e list b e lo w a P A R T IA L G R O U P of I O W A b a n k s u sin g this G O O D ­
W IL L B U IL D IN G a n d P R O F IT A B L E S Y S T E M .
Iowa State Bank— Des Moines,
First National Bank— Council Bluffs
City National Bank— Council Bluffs
Council Bluffs Sayings Bank— Council Bluffs
State Sayings Bank— Council Bluffs
First National Bank— Denison
Crawford County Trust & Sayings Bank— Denison
First National Bank— Sioux City
Live Stock National Bank— Sioux City
Momingside Savings Bank—-Sioux City
Security National Bank— Sioux City
Toy National Bank— Sioux City
Woodbury County Savings Bank— Sioux City
Commercial Trust & Savings Bank— Storm Lake
Security Trust & Savings Bank— Storm Lake
Central Trust & Savings Bank— Cherokee
Cherokee State Bank— Cherokee
Steele State Bank— Cherokee
First National Bank— Le Mars
Le Mars Savings Bank— Le Mars
Akron Savings Bank— Akron
First National Bank— Akron
Exchange State Bank— Exira
Montgomery County National Bank— Bed Oak
Houghton State Bank— Red Oak
Griswold State Bank— Griswold
Citizens State Bank— Oakland
Peoples Savings Bank—^-Waterloo
AVaterloo Savings Bank— Waterloo
Clear Lake Bank & Trust Company—-Clear Lake
Forest City Bank & Trust Company— Forest City
Peoples State Bank— Thompson
Farmers & Merchants State Bank— Lake Mills
Farmers Trust & Savings Bank— Buffalo Center
Farmers Trust & Savings Bank-^-Lakota
State Savings Bank— Rake
Manly Savings Bank— Manly
Manly Savings Bank— Kennsett & Plymouth
First National Bank— New Hampton
.Jasper County Savings Bank— -Newton
Newton National Bank-—Newton
State Bank of Fayette— Fayette
Citizens Savings Bank— Anamosa

OUR

IO W A

s a le s m a n

Earlham Savings Bank— Earlham
City National Bank— Clinton
Iowa State Savings Bank— Clinton
Davenport Bank & Trust Company— Davenport
First Trust & Savings Bank— Davenport
Northwest Bank & Trust Company— Davenport
First National Bank— DeAVitt
First Trust & Savings Bank— AVheatland
Tipton State Bank— Tipton
State Bank of Wapello— -Wapello
Citizens State Bank— Donneilson
Farmington State Bank— Farmington
Farmington State Bank— Salem
Farmington State Bank— Bonaparte
Farmers State Bank— Keosauqua
Farmers State Bank— Birmingham
First National Bank— Centerville
Iowa Trust & Savings Bank— Centerville
Iowa Trust & Savings Bank— Cincinnati
Iowa1 Trust & Savings Bank— Moravia
Farmers & Merchants Savings Bank— Ottumwa
Fidelity Savings Bank— Ottumwa
Union Bank & Trust Company— Ottumwa
First National Bank—-Eldon
Farmers & Traders Savings Bank— Douds
Farmers National Bank— Winfield
Peoples Savings Bank— Laurel
Citizens State Bank— Iowa Falls
Iowa Falls State Bank— Iowa Falls
Fidelity State Bank— Marshalltown
Taintor Savings Bank— New Sharon
Taintor Savings Bank— Taintbr
Farmers Savings Bank— Walford
Benton County Savings Bank— Norway
AAralcott Trust & Savings Bank— Walcott
First Trust & Savings Bank— Lost Nation
Iowa State Bank— Hull
Aralley State Bank— Rock Valley
Farmers Trust & Savings Bank— Rossie
Security State Bank— Sheldon
Sheldon National Bank— Sheldon
Farmers Trust & Savings Bank— Spencer
Clay County National Bank— Spencer
,

in y o u r territory

w ill b e

very

p le a s e d

to

e x p la in this p o p u la r s y s te m to y o u .
W IL L IS J O H N S O N - ED PECK - A U S T I N K IN G - B. J. M c C A R T N E Y

United States Check Book Co., Omaha

the Farmers Savings Bank, Stratford,

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

N orth w estern Banker

S eptem ber 19bb

104
*

•

I O W A

NEWS

•
Form er C ashier Dies

H o!d Annual M e e tin g
Albert Tymeson was re-elected presi­
dent of the Commercial Trust and Sav­
ings Bank of Storm Lake, Iowa, at the
recent annual meeting of the financial
firm.
Other officers re-elected were: J. A.
Schmitz, vice president, and Elmer J.
Knebel, cashier. Joyce Small was
elected assistant cashier to take the
place of Ed Shaw while he is away
serving in the armed forces of the
country.

N ew C ashier a t A d e l
O. D. Ellsworth, vice president and
cashier of the Dallas County State
Bank, Adel, Iowa, recently announced
Cecil E. Orr of Marshalltown was to
become cashier of the Dallas County
State Bank.
Mr. Orr has been acting as cashier
of the Security Savings Bank of Mar­
shalltown for a number of years. He
will assume part of the duties of Mr.
Ellsworth, who will be executive vice
president.

Irvin A. Stroup, 82, of Holmes, Iowa,
died at the Clarion General Hospital
last month.
Mr. Stroup served as cashier of the
Holmes Bank for many years and was
active in county affairs.

>

Small D rop in C learings
Bank clearings for the month of
July showed a small drop over 1943
for the first time this year, but it failed
to make much difference in the totals
so far this year over the same period
a year ago, it was announced at Sioux
City, Iowa, last month.
July, 1944, clearings were down to
$27,266,408 as against $30,039,738 in the
same month last year. The total for
the first seven months is $222,293,201
as against $200,898,474 for the same
period last year.

X

■4

>

Postwar C re d it
Iowa bankers are getting ready to
help finance “ constructive purpose”
bank credit in the postwar era. Frank
C. Welch, president of the Peoples
Savings Bank in Cedar Rapids, Iowa,
attended the session in New York,
New York, of the new “ Postwar Small
Business Credit Commission.”
Welch is one of 42 bankers from
various parts of the nation on the com­
mission. Vivian W. Johnson of Cedar
Falls, state association president, plans
to appoint a state committee on that
subject in the near future.

The U. S. SECRET SERVICE asks
all banks to put these important
words on every bank check . . .
W e urge you to cooperate with the U. S. Secret
Service in curbing the check forger. Ask us to
include the line . . . "Know your Endorser — Re­
quire Identification" . . . on your next order of
bank checks.

★

★

★

AMERICAN
Lithographing and Printing Co.

Pay Tenth D ividend
The liquidation trustees for the First
National Bank of Le Mars, Iowa, are
mailing out 10 per cent dividend
checks to all certificate holders of rec­
ord as of August 1, 1944.
This is the 10th dividend check.
Eight 5 per cent and two 10 per cent
dividends have been paid, or a total
of 80 per cent of the principal on de­
posit.

A g ric u ltu ra l Bankers C o n fe r
D.
D. Bramwell, president of the
First National Bank, Hampton, Iowa,
went to Chicago to attend an agricul­
tural bankers conference conducted by
the Federal Reserve Bank. Mr. Bram­
well was one of six Iowa bankers who
were called in to take part in the con­
ference.

B a n k S ta tio n e r s f o r N e a r ly 5 0 Y e a r s

N orthw estern Banker

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

DES MOINES

S eptem ber

r

O rganize Illinois Bank
Herman Berg, after 19 years as as­
sistant cashier at the First National
Bank, Fairfield, Iowa, is in the process

l

105

of organizing the new bank at Rose­
ville, Illinois, to be known as the Rose­
ville State Bank. Mr. Berg, cashier,
will be assisted by a staff of three.

Candidates for President
of the Iowa Bankers Association

N ew Employes
Mary Marie Smith and Phyllis War­
ren are new employes at the City Na­
tional Bank, Shenandoah, Iowa.

In 1999

In 1995

R. R. BR U B A C H E R
President
Toy National Bank, Sioux City

F. L. S A W Y E R S
President
Centerville National Bank

OME months ago Ralph R. Brubacher, president of the Toy National
S
Bank, Sioux City, announced his can­

various committees of the Iowa Asso­
ciation. He has been secretary and
chairman of Group Ten, and in holding
the latter position served upon the
Association Council of Administration.
Group Ten has not had a president
of the Iowa Bankers Association since
1920, or for a period of approximately
24 years, when L. A. Andrew was
elected from Ottumwa. It is well
known that the bankers of Group Ten
have for some time felt that they were
entitled to have one of their members
serve as Iowa president, and we find
that Mr. Sawyers’ candidacy has met
with wide and ready acceptance from
the bankers of that group. In fact, all
his banker friends, of whom he has
many throughout the state, have ex­
tended to him their endorsement and
support.
Up to date Mr. Sawyers is the only
aspirant for 1945.

D eposits Increase
Bank deposits in Storm Lake, Iowa,
have shown a sharp increase despite
the fact that bank customers have in­
vested more than 10 million dollars in
War Bonds during the last fiscal year.
On the date of the last call, deposits
in banks were $8,788,452, compared to
$6,547,740 a year ago, or an increase of
more than one-third. Savings accounts
alone showed an increase of $265,713.

D eclare

D ividend

The trustees of Citizens Savings
Bank Depositors Trust, Avoca, Iowa,
announce a 10 per cent dividend to
the holders of their trust certificates,
payable last month, upon presentation
for endorsement. This dividend re­
quires a fund of over $27,000. The
trust will have paid 70 per cent of the
face of the certificates, which with the
bank payments in 1933 brings the total
payment to 85 per cent of claims.

D ebits G a in 7 Per C e n t
Bank debits at Dubuque, Iowa, finan­
cial institutions increased 7 per cent
in July, as compared to debits for July,
1943, a report issued recently by the
Dubuque Chamber of Commerce indi­
cates.
Debits in July, 1943, were $18,999,672
and in July, 1944, were $20,576,001.

didacy for president of the Iowa Bank­
ers Association for the 1944-1945 term,
election to be held at the annual con­
vention of the association in Des
Moines on September 4th. Mr. Brubacher, who has long been active in
State Association affairs, is unopposed
for the office he seeks.

N ew S tu a rt Bank Elects
Directors and officers of the First
State Bank of Stuart, Iowa, which
was to open last month, are Everett
Sherman, president; R. B. Hunter,
vice president, and Walter L. Hawley,
cashier.
The directors who will hold office
until the first annual meeting in Janu­
ary, 1945 are:
Everett Sherman, Stuart; R. B. Hun­
ter, F. R. Hunter and Earl Schalke,
Earlham, and Walter L. Hawley,
' Stuart.

The first hat to go into the presi­
dential ring for the 1945-1946 term as
chief executive of the Iowa Association
is that of F. L. Sawyers, president of
the Centerville National Bank, and also
president of the Sawyers Savings Bank
at Seymour, who at the solicitation of
his many friends, has announced him­
self as a candidate.
Mr. Sawyers, familiarly known as
“ Doc,” has given years of service on

1

S carborough ¿ C ompany


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

(T
First National Bank Building, Chicago

n Â

iïm

n c i

C Iu h m Ù ^ ^ ß u n k i

Horace A. Smith, Iow a Representative
Des Moines, Iowa

N orthw estern B anker

S ep tem ber 1999

106

.

The personnel of the Citizens Sav­
ings Bank of Anamosa, Iowa, were
guests and visitors at the Dyersvilie
National Bank, Dyersvilie, last month.
After an inspection of the bank, the
visitors and employes were enter­
tained at the home of Cashier and Mrs.
A. W. Bird.

Holders of depositors trust certifi­
cates in the security State Bank at Allerton, Iowa, were paid the remaining
funds, plus interest, last month. The
total amount of money disbursed was
$23,010.89.

Last and final dividend checks from
the Iowa State Savings Bank, Fairfield, Iowa, in the amount of $23,293
were distributed recently.

S io u x C
Y o u

w ill

it y

fin d

. . . .

“ E X P E R I E N C E ”
“ S E R V I C E ”
“ C O O P E R A T I O N ”

at

THOY

Our

ex p e rie n ce d

NATIONAL BANK
officers

are

h a p p y to co o p era te w ith y ou

at y o u r

service

an d

are

at a n y tim e .

W e in vite o u r N orth w est Iow a, Sou th

D a k o ta , and N e­

b ra sk a co rre sp o n d e n ts an d fr ie n d s to m a k e this h a n k their
S io u x City h ea d q u a rters.
OFFICER S
R. R. Brubacher
President
J. W . Van Dyke
Vice President

E. E. Erickson
Vice President and Cashier

E. A. Hoffman
Vice President

C. A. Johnson
Assistant Cashier

E. H. Spiecker
Vice President

J. D. Shinkle, Jr.
Assistant Cashier

Carleton C. Van Dyke
*J. W m . Van Dyke
Assistant Cashier
Assistant Cashier
*On leave of absence while serving with the armed forces.

N orth w estern Banker

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

DES M O IN E S N EW S
Among those associated with Bank­
ers Trust Company who are on or
were on vacations last month are: F. S.
Lockwood, secretary and trust officer,
at Clear Lake; L. Nevin Lee, vice presi­
dent, on the west coast; A. F. Erickson,
assistant cashier, and George A. Moeckly, assistant cashier, at Clear Lake.
Visiting with G. A. Frampton, presi­
dent of the Iowa State Bank, last
month were Mr. and Mrs. E. H. Luikart. Mr. Luikart is a former superin­
tendent of banks in Nebraska and is
well know in the midwest banking
territory.
Valley Savings Bank officers who
enjoyed vacations at Lake Okoboji
were J. R. Astly, cashier, and Frank
M. Thompson, assistant cashier.

in

t h e

.

Paid I 00 Per C e n t

Final D ividend Paid

h e n

NEWS

With this final dividend, approved
and ordered by the court, depositors
will have received close to 76 per cent
on deposits in the bank at the time it
closed.

Bankers V isit D yersvilie

W

I O W A

Member Federal Deposit Insurance Corporation

S ep tem ber 19M

M. J. Dwigans, assistant cashier of
the Iowa State Bank, passed his an­
nual leave at a summer camp near
Boone.

August was vacation month for a
number of the officers of the IowaDes Moines National Bank, including
Herbert Horton, president; Harry Wil­
son, vice president and cashier; Harold
Klein, vice president; James Hart, as­
sistant vice president, and Frank Sage,
assistant cashier. Messrs Wilson and
Sherm Fowler, assistant vice presi­
dent, are the two officers who enjoy
hay fever but, according to a report
from Mr. Wilson on August 15th, the
season was later or the packages of
vitamin pills these gentlemen consume
are more effective, because up to that
time they had not been as tearful nor
red-nosed as usual. Final check-up is
reserved until convention time in Des
Moines on Labor Day.
L. A. Rodenbaugli, Jr., cashier of the
Iowa State Bank, attended the inter­
national convention of the Y Men’s
Club as a delegate from the Des Moines
chapter over which he presides. The
convention this year was being held in
Sudbury, Ontario, Canada, and Mr.
Rodenbaugh was to make the trip by
rail and boat.

Know Y our Endorsers
In these days when so many checks
are being issued both by the Govern­
ment and by business, it is more neces­
sary than ever that Bankers “Know
Their Endorsers.”
The U. S. Secret Service suggests a
number of rules to follow in stopping
the check thief and forger, and among
other rules recommends these.
1. When any stranger asks you to
cash a check, insist that he properly

107

.
identify himself as the rightful payee
of that check.
2. Ask yourself: If this check is re­
turned because of a forged endorse­
ment. can I locate the person who gave
it to me?
3. If an endorsed check is presented
to you. insist that it be re-endorsed for
comparison.
4. Have each check initialed by the
employe who pays out money for it.
In order to help in this campaign
of stopping the check forger, the Amer­
ican Lithographing & Printing Com­
pany of Des Moines is printing the line
“ Know Your Endorser—Require Iden­
tification” on checks which they are
printing for their bank customers,
many of whom they have served for
nearly fifty years.

In te llig e n t A c tio n a t Last
When the government started its
program of building g ia n t dam s
throughout the U. S. for the purpose
of flood control, irrigation, navigation,
etc., the public was given to under­
stand that electric power development
would be a by-product, and largely
sold to existing private electric trans­
mission systems for distribution to
consumers at equitable rates to be es­
tablished by the government.
Actually, federal power agencies fol­
lowed an opposite policy. The dams
have been used primarily for power
purposes to compete with private en­
terprise. thus destroying taxable as­
sets, while themselves remaining tax
exempt.
The result has been hundreds of
millions of dollars of unnecessary pub­
lic expenditures loaded onto the backs
of already groaning taxpayers.
In California, however, an example
of how federal dams can be operated
according to the original program, has
been witnessed. Under a contract
with the Federal Bureau of Reclama­
tion, power from the great Shasta dam,
which will in fact provide irrigation
water to many California farms, is be­
ing sold to the Pacific Gas & Electric
Company which serves Northern Cal­
ifornia. Beginning January 1, 1945,
the company will pay the government
a minimum of $2,700,000' a year for the
output of the dam, and payments may
exceed $3,000,000 a year—millions
which the government may apply to
operating costs and to reducing the
Y O U R STATE B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
T IM E LO C K EXPERTS

IOWA

NEWS

•

cost of water to the farmers of the
Sacramento and San Joaquin valleys.
How much better is such a policy
than for federal agencies to start du­
plicating distribution facilities of pri­
vate owner companies in other areas
where tax-exempt federal dams are
being used for political purposes to
cripple or destroy private power com­
panies in furtherance of an out and
out program to socialize the electric
industry.

N ew E ducational Film
In cooperation with the United States

D

R

O

V

Secret Service, the safety education
department of the Aetna Life Affiliated
Companies will shortly produce a new
educational film as part of a crime pre­
vention campaign directed against
check thieves and forgers.
The United States Treasury Depart­
ment, of which the Secret Service is a
part, is much concerned over the in­
crease in the theft and forging of en­
dorsements on government checks is­
sued to men and women in the armed
forces, or to their dependents. Gangs
of criminals are making special targets
of allotment checks and, more recent-

E

R

S

W e Look Forward To Meeting You At The

Iowa Bankers Convention
September 3rd and 4th. 1944
Banking problems of the war and postwar
periods need the discussion and sound
thought which can be focused on them
through convention meetings. W e look for­
ward to meeting you at the Iowa Bankers
Convention.
George A. Malcolm, Vice President and Cashier
Frank M. Covert, Assistant Cashier

IIIIO VERS NATIONAL HANK
DROVERS TRUST & SAVINGS RANK
M EM B E R S , F ED ER A L D E P O S IT INSURANCE CORPORATION

F. E. DAVENPORT & CO.

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

OM AHA

N orthw estern Banker

S eptem ber

108

—
ly, disability checks, the number of
which is rapidly increasing.
Frank J. Wilson, chief of the United
States Secret Service, will go to Hart­
ford early in September to appear in
the film, the scenes for which will be
filmed in the Aetna’s own motion pic­
ture studio in the home office. The
Aetna has the most completely
equipped studio in New England for
16 mm. production.
When completed, the Aetna film will
be shown by Secret Service agents
throughout the country. It will also
be made part of the course of instruc-

T IIA

IOWA

NEWS

tion of the American Institute of Bank­
ing and will be shown at national and
regional meetings of the American
Bankers Association.
In addition,
prints will be made available to rep­
resentatives of the Aetna Life Affili­
ated Companies for local showings
as part of their campaign to enlist
the cooperation of their communities
in various forms of loss prevention.

Panic
That word has an ominous sound.
In nearly all congregations of people

X fo S

.

.

.

to t h e B A N K S
The

producers

of

Pioneer

wish

to

thank the many banks in the mid­
west . . . who help finance each year's
crop of Pioneer hybrid seed corn.
The United States Department of A g ­
riculture estimates that hybrid corn
INCREASED the 1943 U. S. Production
. . .

by at least 350,000,000 bushels.

This increased production is distrib­
uted throughout the mid-west . . .

in­

creasing the income of every farmer
who grows hybrid corn . . . building
a larger agricultural income in every
community.

Pioneer Hi-Bred Com Co.

N orthw estern Banker

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

DES MOINES. IO W A

Garst & Thomas
COON

RAPIDS, IO W A

S eptem ber 1944

•where fire occurs, panic ensues. In
discussing this subject from the stand­
point of loss of life, the National
Board of Fire Underwriters say that
panic cannot be eliminated. There­
fore it is important to reduce the
causes of panic to the greatest possible
extent.
History is a record of catastrophes
which cause death and injury from
panic. Whole armies have fled in dis­
order when panic mastered a few and
then was transmitted to the mass.
Fire panic hazards exist in many
places, including theaters, night clubs,
cabarets, schools, factories, stores,
churches, hotels and apartments.
Adequate exits, well placed, will go
far toward giving a sense of security
to crowds, and will lessen the panic
hazard. But toxic gases caused by
fire, can kill people before they have
a chance to move, where the gases
can sweep upward through open stair­
ways.
The answer to the danger of panic,
says the National Board, is to “provide
security of mind, which means make
it visible to the eye or repeat it in
print or otherwise until it is a sub­
conscious reality, that the place is of
good and preferably fireproof type of
construction; that there is little quick
burning material; that where these
conditions do not exist, the place is
protected by automatic sprinklers;
that adequate, well marked exits ex­
ist; and last, but not least, that these
exits are usable.”
Public cooperation is indispensable
in avoiding panics which destroy life.

Bond R edem ption P rocedure
In anticipation that the Treasury
Department would utilize the facilities
of banks of the country in making di­
rect redemption of certain classes of
United States Savings Bonds, A. L. M.
Wiggins, president of the American
Bankers Association, named a special
committee on War Bond Redemption
which has been maintaining direct
contact with the Treasury Department
on this subject for a period of several
months.
As it is indicated that banks will be
asked to assume these duties shortly,
this special committee reports, “When
the decision is made, this function
may be assumed by banks and trust
companies incorporated under general
or special laws of the United States,
the District of Columbia, any state,
territory or insular possession of the
United States and the Canal Zone.
“ It is contemplated that this pro­
gram may start on October 1st of this

109

-•
year although no decision has been
reached.
“ It is expected that in the event a
decision is made regulations and in­
structions will be issued to banks one
month prior to the effective date.
“Assurance can be given that a pro­
cedure for redeeming savings bonds
will be worked out on a streamlined
basis that will be designed to reduce
bank operations to a minimum. The
plan contemplates that a bank will
not be required to complete the cer­
tification form on the back of the bond
when it is presented for payment.
“After this program goes into effect
holders of United States Savings
Bonds can go to any qualified bank
and upon presenting identification sat­
isfactory to the bank receive immediate
payment for their bonds in cash.”
Members of the special subcommit­
tee on War Bond Redemption include:
Nelson B. O’Neal, vice president, The
Riggs National Bank, Washington,
D. C., chairman; John S. Gwinn, exec­
utive secretary of the Massachusetts
Bankers Association, Boston; Clyde D.
Harris, president, First National Bank,
Cape Girardeau, Missouri; C. Edgar
Johnson, vice president, First Na­
tional Bank, Chicago; James H. Ken­
nedy, vice president, Philadelphia Na­
tional Bank, Philadelphia; Robert W.
Sparks, vice president, Bowery Sav­
ings Bank, New York; Russell B. Stew­
art, president, The Miami Deposit
Bank, Yellow Springs, Ohio; Burr S.
Swezey, president, Lafayette National
Bank, Lafayette, Indiana; William T.
Wilson, American Bankers Associa­
tion, New York, secretary.

Do Bureaucrats N eve r Learn?
Just as the public begins to feel
the OPA is really trying to cooperate
in production and distribution prob­
lems, a new order comes out like its
recent decision to put lamb back on
the ration list of meats.
In commenting on the OPA’s latest
order which blocks the sale of lamb in
the Pacific Northwest, United States
Senator Guy Cordon says: “ Despite
the fact that the local OPA officials can
see sound reason to permit the free
flow of lamb into the market, some
wise guys back in Washington, who
think they know more than anyone
else, think otherwise.”
The Portland Oregonian says: “The
fact that every informed source in
this region condemns as error the res­
toration of lamb to the ration list ought
to convince the national OPA that a
point holiday on lamb is necessary in

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

I O W A

NEWS

•
local affairs at the earliest possible
date after this war.

this area to prevent a grave waste of
food and grave loss to producers.”
If the OPA is as stubborn about cor­
recting the lamb situation as it has
been about correcting its unexplain­
able highest price line limitation or­
ders, and its resistance to suggested
improvements in the Price Control
Act, and access to district courts, the
recent lamb supply will be old sheep
unfit to eat before any relief is given.
Although they are willing support­
ers of wartime rationing and control,
the people are getting a good taste of
bureaucratic dictation. It is crystal­
lizing their determination to regain
their independence and control of their

London O ffic e D am aged
The London office of the Bankers
Trust Company, at 26 Old Broad
Street, was damaged recently by a fly­
ing bomb which exploded 50 yards
away, without casualties among the
office staff or property loss not cov­
ered by insurance, according to details
received in New York. All securities
and records, being in vault storage
off the premises, were untouched.
The incident occurred on a recent
Saturday afternoon, after all of the

Established 1878
Member of the Federal Reserve System

and
h e a rty

w e lc o m e

p e r s o n n e l j o i n in a
to

our

fr ie n d s c o m ­

in g to D e s M o i n e s , S e p t e m b e r 3 d
4 th , fo r

th e

1 9 4 4

W a r

and

C o n fe r e n c e

o f th e I o w a B a n k e r s A s s o c ia t io n .

OFFICERS
ROLFE O. WAGNER. President
RAYMOND G. MILLER. Vice President
J. N. COFFEY. Cashier
GEO. RADCLIFFE. Assistant Cashier
FRED C. SUTTON. Assistant Cashier
C. ALLEN EVANS. Assistant Cashier
FRANK J. TAMSE, Assistant Cashier

■

jtM

° " Locus*

-/■ J .-.i

d

m

i

l-

East Fifth st-

Des Moines, Iowa

I

Member of the Federal Deposit Insurance Corporation

N orthw estern B anker

S eptem ber

n o
*

• IOWA
office staff had left the bank. Not a
pane of glass was left intact and the
office was a mass of wreckage, but
the bank was open at the usual time
the following Monday morning. A re­
port received from R. H. Oxley, man­
ager of the Bankers Trust Company’s
London office, read as follows:
“Arriving at the scene early Sat­
urday evening, I found a truly ap­
palling spectacle. It was difficult to
get into the building at all, but when
I did, it was almost impossible to get

NEWS

round the premises because of fallen
doors and partitions, as well as for the
enormous amount of glass scattered
all over the place. With the rest of
the office staff, we started in on Sun­
day morning and by 4:30 p. m. had
got the majority of the woodwork
stacked, glass collected and dumped
outside and desks re-erected, so we
were ready to start work as usual on
Monday morning. For the time being
we have a super-abundance of fresh
air, for of course every single window

Facilitating Domestic Trade
through

Commercial Fetters o f Credit
Manufacturers Trust Company Commercial Letters of
Credit offer definite advantages in financing Domestic
trade. Some of the advantages to buyer and seller are:
• Sellers are assured of prompt payment.
• Sellers hold our bank’s obligation to pay against
specified documents, an obligation that cannot be
cancelled without the seller’s consent.
• Buyers obtain cash discounts, and usually no outlay
of funds is required until shipment is effected.
• Buyers may fix expiration date of Letters of Credit,
to assure delivery on time of “seasonal” merchandise.
• Credit checking is reduced to a minimum.
• The cost is nominal.
Banks throughout the country are invited to discuss
with us the issuance of such Letters of Credit in behalf
of clients.

MANUFACTURERS
TRUST COMPANY
PRINCIPAL OFFICE: 5 5 BRO AD STREET, NEW Y O R K 15, N. Y .
M em b er F ed era l D ep o sit In surance C orporation

Northwestern Banker September 194ti


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Federal Reserve Bank of St. Louis

•
has gone but nevertheless we are
thankful that the utility services, in­
cluding telephone, gas, electricity and
water were still functioning.”
A report from D. Somers, auditor of
the Bankers Trust Company’s London
office, advises that “damage was for
the most part superficial, nothing of
value having been lost which was not
covered by insurance.”

A

O u r C hance fo r
Lasting Peace
The two most pressing domestic
problems after the war will be jobs
and taxes. And they both hinge on the
profitable operation of private indus­
try. That raises the question, where
will our industries find their markets?
In the future, with air transporta­
tion shrinking the globe to little more
than a 24-hour trip to any point, our
markets must be worldwide. There­
fore, we must have a foreign trade
policy that will enable us to sell, as
well as buy from our neighbors. Rec­
ognizing this condition, the statement
of the newly organized Committee on
International and Economic Policy of
which Winthrop W. Aldrich is chair­
man, calls for a multilateral trade
agreement for the United Nations, cre­
ating an international economic char­
ter to define the rights of traders and
investors in foreign countries. It en­
dorses unconditional most-favored na­
tion treatment, rejects regional pref­
erential agreements and exchange re­
strictions, and states that if govern­
ments strengthen their policies of pro­
duction and restriction to achieve se­
curity “in a contracting world econo­
my . . . the end of that road is a third
world war.”
On this statement of fundamentals,
Harry D. Gideonse, president of Brook­
lyn College, says: “ This is an excellent
doctrine, elementary free enterprise
economics and sound political think­
ing. The repudiation of the trade agree­
ments program at this juncture would
be a national tragedy. After the war,
there will be a crying need for Amer­
ica’s mass production goods and farm
products from every country in the
world. If we maintain a liberal pol­
icy regarding imports, this demand
can create thousands of postwar jobs
in this country, utilizing industrial
and agricultural capacity which other­
wise would be idle.
“ But to export, we must be willing
to import. Hence, the renewal of the
trade agreements program is essential
for maintenance of employment and
business activity at a high level after
the war. Moreover, in the Atlantic

V

v-

*

y

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{

t

Ill

• IOWA
Charter, the United States is pledged
to the long-run principle that all na­
tions. great and small, should have ac­
cess on equal terms to the trade and
raw materials of the world.
“ Every country, therefore, if it
wishes to promote the expansion of
world trade, which is a fundamental
condition for the establishment of a
durable peace, must show greater will­
ingness to accept the goods of other
countries. In other words, the lower­
ing of tariffs under the leadership of
the great trading nations, is an essen­
tial means of realizing the program of
economic and political cooperation en­
dorsed by the United Nations.”

NEWS

•

D o n 't Be Fooled
When the government goes into bus­
iness in competition with private en­
terprise, the people are lulled into a
false sense of security. Federal proj­
ects are exempt from the burdens and
responsibilities placed on private en­
terprise. For instance, hundreds of
millions of dollars have been spent to
build the Bonneville and Grand Cou­
lee projects in Washington and Oregon,
the primary objective of which is
electric power development.
How­
ever, the bulk of the cost will not be

charged to power development, but to
the taxpayer.
Through the accident of war, Bonne­
ville power found a market in war in­
dustries which, if Bonneville had not
existed and private power companies
had been allowed to develop, would
have been supplied by such companies
the same as it was in other parts of
the United States, without shortage
or rationing of electric service. The
Bonneville Administration says that
it wants “to open up opportunities for
free private enterprise,” and that

"R eal In co m e " G ains
Four C ents on O ne D ollar
The “real income” of the American
public at the start of June, 1944, was
$1.04, or four cents on the dollar more
than at the beginning of June, 1943,
according to Investors Syndicate, in
a study of what people earn and spend.
“ Over-all living costs show no appre­
ciable change over a year ago,” ex­
plained Investors Syndicate in report­
ing on its monthly study of the na­
tion’s buying power. “When all vital
items in the average household budget
are considered one dollar during May
would buy about as much as it did the
same month a year ago.
“ Food, which always takes the larg­
est slice of expenditures in the aver­
age American household, was lower
than any of the main living costs dur­
ing May. Food expenditures of 96
cents in May, 1944, compare with $1.00
in May, 1943, for the same quality and
quantity of these items. In April
foods cost 95 cents, March 98 cents,
February $1.01, in January $1.02, in
December $1.04, and in November
$1.07, all comparisons being made on
the basis of $1.00 in the same months
a year earlier.
“All living cost figures are based on
the national average of 'white’ market
listed prices, undistorted by local or
undercover influences. In some places
living costs and income figures may be
higher or lower than the averages
cited in this study.
“Wearing apparel for civilians dur­
ing May, 1944, cost $1.04 compared
with $1.00 in May, 1943. Clothing for
men, women, and children in April
cost $1.04, in March, February, and
January $1.03, in December $1.04, and
in November $1.02 compared with
$1.00 in the same periods twelve
months before.

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

«À

U ne-half the people in the eleven western states reside in California. This
is the West's greatest market. If, in your own surveys, the present and post-war
opportunities in California occupy an important place, remember this: At Bank of
America, which serves California through branches in more than 300 cities and
towns, planning for tomorrow is second only to the task of meeting the vital bank­
ing and financial needs of today. Executives throughout the country are finding
the services of this bank invaluable, whether their interests lie in the field of
agriculture or industry, in reaching a vast consumer market here, or in approach­
ing future foreign markets beyond the Pacific. Inquiries receive prompt attention.
A
Æ

^

CAPITAL FUNDS . .
DEPOSITS . . . .
RESO URCES
. . .

$

171,776,392.04
3,767,443,322.19
3,975,493,006.15

^
^
V

( À s o f June 30, 1944 )

ifim t k o i A m e r i c a
NATIONAL

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MEMBER . . . FEDERAL RESERVE SYSTEM—FEDERAL DEPOSIT INSURANCE CORPORATION

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B lue and Gold BANK o f AMERICA TRAVELERS CHEQUES
are a v a ila b le through au th o rized banks and agencies
everyw here. C a rry them when you trave l.

Northwestern Banker

Septem ber

1 9 ' i /i

112

• IO W A
Bonneville as a free public enterprise
works hand in hand with private en­
terprise.” The Bonneville Administra­
tion has done and is doing its level best
to eliminate free enterprise in the
electric field throughout the entire
Northwest. It is not a free public en­
terprise, it is a socialized, tax-exempt,
political agency which does not recog­
nize the regulatory laws of the states
in which it operates, which apply to
its private electric competitors. It es­
capes all municipal, state and federal
taxes which are levied on all “free”
private industry and citizens. It en­
joys the advantages of roads, police
protection, schools, etc., without pay­
ing a dime toward their maintenance,
and it uses franked envelopes with the
government warning, “ Penalty for pri­
vate use to avoid the payment of post­
age, $300.”
When Bonneville states that in the
first five years of its operation it paid
a profit of seven million dollars into
the federal treasury, it should also
state how many millions of dollars in
state and local taxes it failed to pay
in order to show that “profit.” No,
Bonneville isn’t “free”—it is subsi­
dized political enterprise—the founda­
tion for state socialism.

Foreign Trade a N ecessity
In discussing the importance of a
nonpartisan plan for trade between
nations as the solid foundation for
peace, employment and prosperity, Alf
!/

Everybody’ s
talking
about the
“ return to
quality”
That’ s not
true here
because, we
have never
left it !

FRANKEL'S
DES MOINES
Quality Since 1861

Northwestern Banker September


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

1 ! ) ,i /
i

NEWS

•

M. Landon, former governor of Kan­
sas, and Republican nominee for Presi­
dent in 1936, said:
“ A lot of people have the mistaken
idea that a substantial portion of our
lend-lease materials will be repaid.
Many assume that we can export rec­
ord-breaking quantities of finished
goods to Europe, the Orient and South
America and that we can carry most
of our foreign shipments in our own
ships and that while doing all this we
can still maintain air-tight tariff bar­
riers for the protection of all domestic
industry.
“ In foreign trade, a nation gains cap­
ital in three principal ways: The sale
of goods, the sale of services and the
receipt of income from foreign invest­
ments.
“Conversely, the nation that habit­
ually enjoys a favorable balance of
trade from everyone is some day go­
ing to find its customers in distress.
The time comes when it cannot con­
tinue in foreign trade unless it agrees
to purchase more goods, or more serv­
ices, or arranges to extend credits to
these customer nations.
“ Following the first World War, we
were unwilling to accept large imports.
We hiked tariff rates to an all-time
high. Then the monetary devaluation
of 1933-34 had the indirect effect of
raising them still higher. However, we
had to sell' abroad so we subsidized
our customers with large credit grants.
“ Are we going to make those mis­
takes again? If we are to avoid it,
we must learn that international trade
is a two-way street that can’t be
blocked at either end without creating
a traffic jam.
“ Our industrial system, which in its
infancy desperately feared the compe­
tition of foreign imports, is now a co­
lossus hungry for world markets.
“A free and easy inter-exchange of
raw materials and finished products
among all the nations of the world is
the quickest way to world prosperity,
and world prosperity is the number
one prerequisite not only for Ameri­
can welfare but lasting peace. If all
the parties were to join on that kind
of a foreign plank something worth­
while might be accomplished.
“We can make our currency the
soundest in the world. We have .he
largest and most modern merchant
marine. We have the most efficient
mass-production system. I believe it
is to the interest of the United States
to unite with other nations in a spirit
of mutual concessions and mutual re­
sponsibility in removing economic fric­
tions.
“ No system of extravagant spending

on public works will bring the pros­
perity that the waiting markets of the
world will bring.
“ I believe this is the only way we
can enjoy solid prosperity, and I be­
lieve it is necessary if we are to de­
velop among the nations of the world
the type of social and economic rela­
tionship upon which peace ultimately
can be based.”

W e ll Placed C o n fid e n c e
In a timely and thought-provoking
article appearing in a leading trade
publication, a noted utility authority
points out that the “ power industry,
by its magnificent war effort, has won
renewed confidence and respect on the
part of the public and in government
circles as well. It now has an oppor­
tunity to capitalize these gains by
unity of action and purpose to work
for industrial peace and welfare in the
postwar years.”
This brief statement speaks volumes.
Less than a decade ago, the power in­
dustry had touched bottom in public
esteem. It became a springboard from
which public ownership minded poli­
ticians sought to plunge the country
into state socialism. As the national
emergency of war approached, these „
same politicians seized the opportunity
to expand public ownership of electric
power by endeavoring to show that a
disastrous power shortage threatened
momentarily.
V

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Complete Mai!
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Plans, Copy, Art, Lists,
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Offset and Multi-color
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s. P. WHITING
FRANK ARMSTRONG
CLIFF L. BUNKER

Direct Advertising, Inc.
707 Locust St.. Des Moines
Telephone 4-0106

n_________ r

113

A . I. B. Extends Training Program
A m e ric a n

In stitute

of

Banking

A nnounces

S tream line

S tudy

C ourse W h ic h C an Be G ive n in Banks Everywhere
facilities of the Amer­
ican Institute of Banking are to
T RAINING
be made available to all banks
everywhere regardless of location un­
der an extension of the A.I.B. educa­
tional program, William C. Way, presi­
dent of the Institute has announced.
This extension includes the offering of
a new study course in the fundamen­
tals of banking which can be given to
the staff of any bank in any place un­
der competent leadership right in its
own shop. As indicated, this course,
which is especially valuable to presentday personnel, is available to all banks,
but is directed particularly to the 8,000
to' 10.000 banks which are not close
enough to populous areas in which
A.I.B. chapters are usually located to
be able to use the facilities of the
chapters.

tion for reviews, class discussions,
tests, and future assignments. It sug­
gests important points to stress at each
session. In brief, it is a simple and
complete guide which, when used by
the instructor along with the text,
makes the course the practical and
effective thing that it is.
The course is so designed and the
material is so prepared that any prac­
tical, experienced banker can conduct

practically any size.
bar. Two or three
enough to form an
group, and a larger
just as effective.

Smallness is no
employees are
effective study
number can be

Tryout Was Successful
The course has been given a thor­
ough tryout in a number of banks
before being offered to all banks. Those
which have used it report that it con­

The Object
The object of the new course is to
provide the means for giving all em­
ployees a working knowledge of the
fundamentals of banking and to give
this knowledge to them quickly. To
that end it has been set up in such a
manner that it can be covered in as
few as 15 easy and enjoyable class
or conference sessions of two hours
each. Students completing the course
will be credited by the Institute with
work done toward the winning of a
pre-standard certificate.
The heart of the course is the Institutue’s new text, the “Fundamentals
of Banking.” This is a complete over­
all easy to read and understand text
of some 24 chapters or topics covering
the fundamentals of banking and illucidated with simple charts, tables,
and illustrations used to help clarify
various points. These 24 topics run the
gamut of banking operations and serv­
ice and the history and functions of
banking.

Instructors' Manual
A unique tool of the course is an
instructors’ manual which tells the
“how” of how to do it, and which
makes practical banker leadership of
the course not only possible but highly
desirable. This instructors’ manual
shows exactly how to schedule and
conduct the course, contains step-bystep suggestions for each class session,
and makes instruction a simple and
orderly process. It provides informa­

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

Here is a study group session in one of the new American Institute of
Banking Courses, “ Fundamentals of Banking”

it. In fact, it is of such a character that
only a banker should lead it. And the
process is that of leading rather than
that of teaching, since the quiz and
discussion method rather than the
lecture method is employed.
With the material at hand and the
manual to aid him, the banker-instruc­
tor is not under the necessity of mak­
ing elaborate preparation for the con­
duct of the course. The method is
simply that of informal group ex­
change of information with the text­
book as the “master blueprint” for the
discussion. Under this plan the bank­
er’s own experience is regarded as the
best preparation. There is no necessity
for the bank to seek outside teaching
help. Practical, within-the-family and
inside-the-shop discussion is the es­
sence of the course.
There is no objection to a couple of
banks undertaking it together as a
joint effort in order to get numbers
of students. Neither is is necessary.
A unique feature of the course is the
fact that it is adapted to groups of

tributes to the stability of their or­
ganizations through giving their staffs
an interesting and helpful knowledge
about the business in which they are
engaged and through bringing their
staffs together on common ground for
the exchange of ideas. They also re­
port that as a by-product the course
gives their employees a better know­
ledge of their own institutions and
their functions. In the process of ap­
plying the information studied to their
own shops, questions are raised which
provide opportunities for intimate dis­
cussion and explanation of policies and
procedures based on actual experience
with them.
In announcing the course the A.I.B.
cites six benefits which may be ex­
pected to accrue to any bank adopting
it. These are: increased efficiency of
the staff and thus of the banks; better
service to depositors and communities,
and therefore better public relations;
increased earnings resulting from effi­
ciency and better service; better em­
ploye-employer relationships; increased
Northwestern Banker

Septem ber 19'i 'i

114

*

• IOWA
volume of work from personnel staff,
and smooth working bank teams with
knowledge about what each other is
doing.
Complete information about the
course, how to get started, and other
details are available at the headquar­
ters of the American Institute of Bank­
ing at 22 East Fortieth Street in New
York City. An announcement is being
mailed to all banks by the Institute.

O bserves A n n ive rsa ry
The First National Bank in St.
Louis recently observed its twentyfifth anniversary under its present
name. However, the bank’s history
really extends back to June 16, 1857,
when the Southern Bank, its direct
antecedent, opened its doors 87 years
ago. The Southern Bank became the
Third National Bank of St. Louis after
the National Banking Act was passed
in 1863, and was granted charter num­
ber 170, dated December 25th of that
year. The Third National began busi­
ness on January 2, 1864.
The First National Bank began busi­
ness on July 7, 1919, at its present
location, Broadway, Locust and Olive
Streets, and was formed through con­
solidation of three of the city’s oldest
and largest banks, the Third National
Bank of St. Louis, the MechanicsAmerican National Bank and the St.
Louis Union National Bank. Since
that time the First National acquired
the International Bank of St. Louis,

NEWS

•

January 7, 1928, the Liberty Central
Trust Company, March 25, 1929, and
the Franklin-American Trust Com­
pany, December 22, 1931.
Walter W. Smith, one of the coun­
try’s leading bankers, is now presi­
dent of the First National, and the
directors are as follows: F. O. Watts,
Walter W. Smith, Thomas R. Akin,
L. Ray Carter, Willard R. Cox, B. B.
Culver, Wm. H. Danforth, F. B. Eiseman, J. J. Frey, C. W. Gaylord, Byron
A. Gray, James J. Grover, Richard S.
Hawes, Andrew W. Johnson, John B.
Kennard, H. H. Langenberg, Ch. A.
Lemp, E. D. Nims, Isaac H. Orr, H. M.
Pflager, Frank Phillips, P. B. Postlethwaite, Sydney M. Shoenberg, A. C.
Stannard, John B. Strauch.

Big Food Producers
“The plains states of the Missouri
basin are what they are because of the
climate,” Dr. H. L. Walster told the
sub-committee of the commerce com­
mittee in Washington, when he apapeared before that group urging the
necessity for irrigation for the proper
development of the breadbasket of the
world.
“The proposed expansion of irriga­
tion in the Missouri basin will not re­
move all the hazards in agricultural
production, but it does strike directly
at lessening them,” Dean Walster said.
He declared that the “ Nation has a
stake in maintaining on even keel the
agricultural productivity of the seven

-------------------------------------------------------------------------- v

7 3

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on Real E s ta te ..............

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plain states — Montana, the Dakotas,
Wyoming, Colorado, Kansas and Ne­
braska.
“ Even in the drouth period of 193039,” Walster said, “these seven states
produced 41.5 per cent of the nation’s
wheat, 43.4 per cent of the nation’s rye,
34.8 per cent of the nation’s barley, 15.3
per cent of the nation’s oats, 10 per
cent of the nation’s corn, and 18.7 per
cent of the nation’s grain sorghum.
“When nature provided more precip­
itation, as she did in 1941,” Walster
said, “then the seven plains states pro­
duced 51.7 per cent of the nation’s
wheat, 61.9 per cent of the nation’s rye,
50.4 per cent of the nation’s barley,
19.4 per cent of the nation’s oats, 25.6
per cent of the nation’s grain sorghum,
11.6 per cent of the nation’s corn, and
32.7 per cent of the nation’s wool.
“ The population is small. This tre­
mendous job of filling the bread bas­
kets and granaries of the nation was
performed by 7.4 per cent of the farm
people of the nation.
“The job the people on the farms of
the plains states of the Missouri basin
needs protection because this nation
needs protection.
“The Missouri basin as a whole may
well be called the Ukraine of the New
World. It is worth fighting for and
protecting.
“ Here,” Walster said, “the nation
must expect to fill one-half of her bread
basket, butter about one-fifth of all the
bread she eats, get about one-sixth of
her pork, one-fifth of her beef, a quar­
ter of her mutton, and nearly one-third
of her wool. Here the nations pack
meats worth 27 per cent of the whole­
sale value of all meat packed in the
United States and 48 per cent, almost
half, of the wholesale value of all poul-

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Federal Reserve Bank of St. Louis

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115

• IO WA
try dressed and packed in the nation.
Here flour and grain mill products of
the United States are manufactured.
“ The job of producing, processing,
and handling of all this food and fiber
is done by the people of the Missouri
basin, 5.2 per cent of the total popula­
tion of the United States.”

D eclare D ividend
Directors of First Bank Stock Corpo­
ration, meeting in Minneapolis Aug­
ust 16th, declared a dividend of 35c per
share on the stock of the corporation,
payable September 11th to stockhold­
ers of record August 25th.
Including this dividend, the corpora­
tion will have distributed during 1944
d iv id e n d s approximating $1,984,000,
equivalent to 70c per share. The num­
ber of stockholders participating in the
present distribution is approximately
14,400.

W a tc h Y our Speed
An all-time record total of 50,000
American deaths from automobile ac­
cidents in the first year following re­
moval of wartime speed and gasoline
restrictions is predicted in a warning
from the Northwestern National Life
Insurance Company.
Although there will be several mil­
lion fewer cars in operation than in
1941, when the previous record total
of 39,969 auto deaths occurred, the end­
ing of gasoline rationing will put a
larger proportion of travel-hungry driv­
ers on the open road than ever before;
a recent survey by the insurance com­
pany showed travel to be one of the
major postwar ambitions of the aver­
age citizen. A larger proportion of the
cars will have poor brakes, worn steer­
ing mechanisms, worn tires. Many of
the drivers will be ex-servicemen, ac­
customed to contempt for danger, and
finding in speed the answer to their
need for excitement after release from
army, navy or flying corps. And their
civilian comrades at the steering wheel
will be subject to the normal human
reaction when freed from previous re­
strictions on speed.
The net result will be the worst holo­
caust of accidents in this nation’s his­
tory, the warning says, unless counter­
measures are begun now. Every com­
munity should immediately set up
plans for stringent inspection and test­
ing of all automobiles coming under its
jurisdiction, with insistence that all
needed repairs be made or such dan­
gerous vehicles be removed from serv­
ice. Driver’s license requirements need

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

NEWS

•

to be raised in most communities, and
provisions made for stringent enforce­
ment. An intensive program of re­
education in safe driving should be
undertaken, in preparation for the
denser traffic which will surge through
city streets and along country high­
ways within an hour after unrestricted
gasoline supplies can be secured by the
average driver. It might be well for
speed limits to be raised gradually,
instead of being restored at once to
pre-war status in one fell swoop, the
warning suggests.
Some of these preventive measures
call for legislation, the warning points
out; all will require considerable time
for planning and preparation. V-day
will release an avalanche of other
changes and adjustments to occupy
public attention. Therefore, prepara­
tions need to be begun now to deal
with the terrific automobile hazard
soon to be turned loose upon the coun­
try’s population. Delay may make the
first year of peace more deadly than a
year of war, the insurance company
warns.

Greetings
to
Iowa Bankers
★ ★ ★

Des Moines Bank
and T rust Co.
310 Sixth Avenue

★

★

★

G. B. Jensen, President
A. W. Crossan, Vice President
H. F. Gall, Cashier

If she looks old, she’s young; if she
looks young, she’s old; if she looks
around, follow her.

IOW A • LITHOGRAPHING • COMPANY
F O U N D E D BY G E O R G E

H . RAGSDALE

515

-

-

•

E D W IN G. RA G SD A LE

SEC RETA RY

TW ENTY EIGHTH STREET

D E S •M O I N E S

QUALITY*

E X P E R I E N C E

• S E R V IC E

Northwestern Banker

Septem ber 19b'i

116
•

I O W A

N E W S

•

8 Farm-Buying Hints
ANY farmers would be better off
M
as tenants instead of buyers of
farms at present land prices, according
to True D. Morse, president, Doane
Agricultural Service, St. Louis.
Farm ownership has its advantages,
such as the owner “ staying put” and
being able to develop his business as
he wishes, he points out.
“ But there is no disgrace in ten­
ancy,” says Morse in the August issue
of Farm Journal. “ Many of the most
capable and prosperous farmers are
tenants and intend to remain such.
Some owners even rent their farms
and become tenants on other land. In
the most prosperous section of Iowa,
two out of three farmers are tenants.”
Morse offers eight points the pros­
pective farm buyer should consider be­
fore investing in land. (1) Income.
Will your investment in land give you
a better return than other investments?
(2) Cash. Unless you can pav one-half
of the purchase price of a farm in cash,
and still have enough money to oper­
ate without borrowing, you probably

DES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION

Oldest and Largest in Des Moines
411 6th Ave.

Dial 4-7119

ELM ER E. M IL L E R
Pres, and Sec.

H U BE R T E. JAM ES
A sst. Sec.

FOR YOUR ENJOYMENT . . .
Listen to the
“ W O R LD OF M U SIC ”
KSO, 1460 KC

9:30-10 :00 a. m. Sundays

Y. PRINTING
nno

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Federal Reserve Bank of St. Louis

De s M o in e s , I a .

Septem ber 1944

should not buy land now. (3) Debts.
This is the time to get out of debt in­
stead of borrowing more money. If
you owe any money—do not buy land
now. (4) Buy good land. “ Cheap
land” is generally too high-priced at
best. (5) Buy improvements, don’t
build them. It’s cheaper! If you need
buildings, select a farm that already
has the main ones. Building costs are
high and will go higher. But never
give up soil fertility to get buildings.
( 6 ) Location of farm and quality of
the house. It may pay dairymen and
those branches of agriculture selling
at retail to buy location on a good road
close to market. For many other farm­
ers, however, these elements will not
help pay interest and taxes. (7) Get
an appraisal by an independent, quali­
fied, honest appraiser. It is always a
good investment. (8 ) If in doubt, don’t
buy. There always will be good land
to rent, and thousands of farms for
sale.
“Land probably is the safest of all
investments, when purchased at a con­
servative price,” Morse asserts. “ Farm
ownership is a worthy ambition. But
more important is to follow a sound
program that leads to security in old
age, with the opportunity to enjoy
along the way those educational and
cultural values that distinguish the
best American farm families.”

Use A .B .A . Services
To encourage bankers to make fuller
use of the varied services of the Amer­
ican Bankers Association which are of
value to banks, A. L. M. Wiggins, pres­
ident of the association, has had an
attractive booklet “ At Work for Your
Bank” prepared, which describes brief­
ly, under appropriate headings, the
work of the association’s many depart­
ments. This booklet has been mailed
to every banking institution in the
United States.
In a letter to bankers accompanying
the booklet, Mr. Wiggins, who is presi­
dent of the Bank of Hartsville, Hartsville, South Carolina, said that there
are probably bankers throughout the
country who are not aware of many of
the activities of the A.B.A. and do not
know of some of the services per­
formed by the organization. “Even
members of committees and commis­
sions are sometimes unaware of activi­
ties of the association in fields in which
they are not directly interested,” he
added.
“ The more I have observed the work

of the A.B.A., the more impressed I
am of the wide scope of its activities,
the thoroughness with which every
phase of banking is continuously stud­
ied, the care with which its problems
are analyzed and the intelligent effort
that is made to serve the needs of char­
tered banking. The association is thor­
oughly organized in its staff, commis­
sions, committees and councils, but
without overlapping or duplication. No
matter what problem arises, there is a

4
-A

»

BANKERS
WANTS
M ay W e Help You?
Rate— 5c per word with order
NORTHWESTERN BANKER
527 Seventh Street, Des Moines 9, Iowa
ASST. CASHIER with 18 years country
bank experience desires cashiership
with or without investment.
Write
EMP c/o Noi'thwestern Banker, 527
7th St., Des Moines, Iowa.
Employed banker of many years ex­
perience available.
Capable of taking
complete charge. High references. Coun­
ty seat town in Iowa or Nebraska pre­
ferred. Write HWD, care Northwestern
Banker, 527 7th St., Des Moines, Iowa.

LETTERS THAT WORK
M u ltig r a p h in g — M im e o g r a p h in g
M u ltilitliin g
A d d r e ssin g — M a ilin g
■
M a n y B a n k and In v estm e n t
H ou ses are o u r clien ts. P r o m p t
service to o u t o f tow n cu sto m ers.
■

WORK LETTER SERVICE
723 Securities Bldg., Des Moines

*

*

117

specific group charged with its han­
dling, and one or more members of
the staff, who are best qualified, re­
sponsible for action.
“ I would like for all bankers to know
more about its operations. There are
many services the A.B.A. performs
that would be of value to individual
banks if the bankers utilized them.
There are many other services of value
that all member banks receive more or
less automatically,” Mr. Wiggins said.

Forum and Sem inar M o n th
November will be observed as Na­
tional Forum and Seminar Month by
the American Institute of Banking, and
each of the institute’s 201 chapters is
being urged by Edward F. Gee, chair­
man of the national forum and seminar
committee, to present one special pro­
gram during that period.
In a recent letter to the chapters,
Mr. Gee announced that arrangements
have been made by the committee with
the Office of the Coordinator of InterAmerican Affairs in Washington, D. C.,
to make sound films, and capable speak­
ers about South America available to
chapters in all parts of the country.
“ It is a rare opportunity to offer a
senior educational program of timely
practical value with a substantial ro­
mantic appeal,” Mr. Gee said.
The committee has asked that every
chapter sponsor a seminar program
and hold at least one forum meeting
during the course of the year on the
general theme “ Inter-American Trade
and Travel in the Postwar World.”
Program material available to the
chapters from the office of the Coordi­
nator of Inter-American Affairs in­
cludes a choice of 50 sound moving
pictures, many of which are in color,
a series of booklets on each of the
South American countries presenting
economic, cultural and historical facts,
and a leaflet on program suggestions,
as well as other material. The office
also said that 1,500 speakers are avail­
able to discuss various South Ameri­
can subjects.

O n ce B efo re

Wife (to Hubby who had had a few
drinks too m any): If it were the first
time, Archibald, I could forgive you,
but you came home in just the same
state in November, 1916.
A p p r o p r ia te

Tombstone Dealer:
How would
“ Gone Home” do for an inscription?
Widow: Fine. It was always the
last place he ever thought of going.

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

And ex
A
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 ........... 50
A l l y n , A. C., an d C o m p a n y ........................... 64
A m e r i c a n L it h o g r a p h in g - a n d P r i n t i n g
C o m p a n y ........................................................... 104
A m erican N ational B an k and Trust
C o m p a n y — C h i c a g o .................................... 42

9

¿A d v e r tise r
o
Ii

L a M o n t e , G e o r g e an d S o n ...........................
6
L e F e b u r e C o r p o r a t i o n .................................. 60
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 ................... 116
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 . . . 88
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 . . . . 86
L i v e S t o c k N a t i o n a l B a n k — S io u x C i t y 76

B

M

B a l l a r d H a s s e t t C o m p a n y ......................... 66
B a n k o f A m e r i c a ................................................ I l l
B a n k e r s T r u s t C o m p a n y — D es M o i n e s . . 119
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 . . 84
Beh, C a r l e t o n D ................................................. 64
B u r r o u g h s A d d i n g M a c h in e C o ................. 59

M c C o r m i c 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 ............................................................ 57
M a n u f a c t u r e r s T r u s t C o m p a n y .................110
M a r s h a ll C or n s a n d C o m p a n y ..................... 100
M a x w e l l , C h a rle s M.-—-C on n ec ti c u t
G e n e r a l L i f e ................................................... 58
M e r c a n t i l e C o m m e r c e B a n k an d T r u s t
C o m p a n y .......................................................... 27
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 . . 56
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 la n d N a t i o n a l B a n k an d T r u s t C o . . .
5
M id s t a t e U n d e r w r it e r s , I n c .......................... 58
M ill O w n e r s M u t u a l F i r e I n s u r a n c e Co. 46
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 ........... 72
M is s is s ip p i V a l l e y T r u s t C o m p a n y ......... 92
M o r r i s P la n C o m p a n y .....................................102
M u r d o c h , D e a r t h a n d W h i t e , I n c ............. 65

C

C a p ita l C it y S ta te B a n k ................................ 109
C ar n a h an , T. D.— M i n n e s o t a M u t u a l
L i f e ..................................................................... 53
C e n t r a l H a n o v e r B a n k an d T r u s t C o . . . 37
Central N ational B an k and T ru st C o m ­
p a n y — D es M o i n e s .................... 19, 20, 21, 22
C h a se N a t i o n a l B a n k ...................................... 43
C ity N a t i o n a l B a n k an d T r u s t C o m ­
p a n y — C h i c a g o ............................................... 36
C o n t i n e n t a l B a n k an d T r u s t C o m p a n y —
N e w Y o r k ........................................................ 68
C o n t i n e n t a l I l l i n o i s N a t i o n a l B a n k an 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 . . . 85
C op ela n 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 ...................................
51
C r abbe, T h o m a s L., a n d C o m p a n y ........... 69
I)

Danielson F ederal S avings and Loan
A s s o c i a t i o n ...................................................... 69
D a r l i n g A g e n c y .................
48
D a v e n p o r t , F. E., an d C o m p a n y ......... 84,107
D ay , 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 ar is, R a l p h E .— C o l u m b i a N a t io n a l
L i f e ..................................................................... 53
D es M o in e s B a n k an d T r u s t C o m p a n y . . 115
D es M o in e s B u ild in g , L o a n an 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 .................................... 112
D r o v e r s N a t i o n a l B a n k ...................................107
E

E m p l o y e r s M u t u a l C a s u a lt y C o m p a n y . . 51
E n y a r t , J. C......................................................... 66

F
F a r m e r s N a t io n a l C o m p a n y — O m a h a . . . 99
F a u l k n e r , W . H.— C r u m an d F o r s t e r . . 55
F e d e r a l H o m e L o a n B a n k — D es M o in e s 66
F e d e r a l I n t e r m e d i a t e C r e d it B a n k s . . . . 63
F i n a n c i a l D e v e l o p m e n t C o m p a n y ........... 36
F i r s t N a t io n a l B a n k — C h i c a g o .................. 26
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 ........... 100
F i r s t N a t io n a l B a n k — O m a h a .................... 82
F i r s t N a t io n a l B a n k — St. L o u i s ................ 40
F i r s t N a t io n a l B a n k — S io u x C i t y ............. 90
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 ............. 38
F i s h e r C o m p a n y ............................................... 35
F i s h e r an d F i s h e r — -C on nec ti cut M u t u a l
L i f e ..................................................................... 50
F r a n k e l C l o t h i n g C o m p a n y ..........................112
G

G e n e r a l A m e r i c a n L i f e I n s u r a n c e C o . . . 49
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 ................ 65
H

H a m m e r m i l l P a p e r C o m p a n y .................... 29
H a r r i s T r u s t an d S a v i n g s B a n k ................ 78
H a rtford F ire Insurance C om p an y—
C. D. W h e r r y ................................................... 57
H a w k e y e C a s u a lt y C o m p a n y .................... 52
H a w k e y e M u t u a l H a il I n s u r a n c e A s s n .. 58
H o m e F l e e t — E d H. D a v i s ........................... 57
H o m e I n s u r a n c e C o m p a n y ........................... 41
H o m e M u t u a l I n s u r a n c e C o m p a n y ......... 52
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 ................ 54
H o n o r R o l l B a n k s o f I o w a ...................... 9 6-97
H o t e l F o r t D e s M o i n e s ...................................114
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 ..................................................................... 55

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 Co. 54
I n v e s t o r s S y n d i c a t e ........................................ 68
I o w a - D e s M o in e s N a t i o n a l B a n k an d
T r u s t C o m p a n y ..............................................120
I o w a L i t h o g r a p h i n g C o m p a n y ................... 115
I o w a S ta te B a n k — D e s M o i n e s ................ 98
I o w a S ta te B a n k an d T r u s t C o m p a n y —
I o w a C it y ......................................................... 102

J
J a m i e s o n an d C o m p a n y ............................... 74
J o s e p h ’ s 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 .................................... 74
K e n t , S id n e y A .— P r u d e n t i a l I n s u r a n c e
C o m p a n y .......................................................... 53
K o c h B r o t h e r s .................................................. 116

N
N a t i o n a l C it y B a n k , N e w Y o r k ..................
N a t i o n a l F i r e G r o u p — W . H. H a r r i s o n . .
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 iem a n n , W . K . — B a n k e r s L i f e C o m ­
p a n y o f D e s M o i n e s ......................................
N o r t h e r n T r u s t C o m p a n y .............................
N o r t h w e s t e r n N a t i o n a l B a n k ....................
N orth w estern N ational L ife Insurance
C o m p a n y ...........................................................

67
58
82
38
56
34
70
52

O

Olson , W . R., C o m p a n y .................................. 74
O m a h a N a t io n a l B a n k .................................... 17
Otto, P a u l C.— C o n n e c t i c u t M u t u a l ......... 57
P

P h i l a d e l p h i a N a t io n a l B a n k ...................... 7 5
P i o n e e r H i - B r e d C or n C o m p a n y ...............108
P o licyh old ers N ational L ife Insurance
C o m p a n y .......................................................... 47
P o l k , R. L ., an d C o m p a n y .............................. 102
P r i e s t e r an d C o m p a n y .................................... 69
P u b l i c N a t i o n a l B a n k an d T r u s t C o . . . .
4
<1

Q u a il an d C o m p a n y ...............................

68

It

R ead , T h o m a s B.— M u t u a l L i f e o f
N e w Y o r k ........................................................ 54
R o y a l B a n k o f C a n a d a .................................... 83
R u s s e l l C o u n t y B u i l d i n g an d L o a n
A s s o c i a t i o n ...................................................... 69
S
St. L o u i s T e r m i n a l W a r e h o u s e C o ........... 31
St. P a u l M e r c u r y I n d e m n i t y C o m p a n y . . 55
St. P a u l T e r m i n a l W a r e h o u s e C o ............. 91
S c a r b o r o u g h an d C o m p a n y ........... 34, 46, 105
S e c u r i t y N a t i o n a l B a n k ................................. 94
Sha w , M c D e r m o t t an d C o m p a n y ................ 62
S n ow , E d w i n — Aetng, L i f e ............................. 56
S ta te F a r m I n s u r a n c e C o m p a n y ................ 54
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 . . . 80

T
T e n s i o n E n v e l o p e C o r p ................................... 85
T o y N a t io n a l B a n k ........................................... 106
U

U n io n B a n k an d T r u s t C o m p a n y ............. 95
U n it ed S ta te s C h e c k B o o k ............................ 103
V

V a l l e y S a v i n g s B a n k .................
V ie th , D u n c a n a n d W o o d .............................

89
62

\\

W a n t ad ................................................................116
W a l l a c e - H o m e s t e a d C o m p a n y ................... 101
W a l t e r s , C h a rle s E., C o m p a n y .................. 85
W a t e r l o o S a v i n g s B a n k ............................... 93
W e b s t e r L i f e I n s u r a n c e C o m p a n y ........... 48
W e lc h , J. A ......................................................... 95
W e s s l i n g S e r v ic e s ........................................... 39
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 C o ......... 44
W h e e l o c k an d C u m m i n s ............................... 64
W it t e n s t e i n , M., an d C o m p a n y ................ 65
W i l l i s an d M o o r e ............................................. 63
W it h e r s , W i l l i a m R .— Sun L i f e ................ 56
W i t m e r - K a u f f m a n - E v a n s C o m p a n y . . . 58_
W o r k L e t t e r S e r v i c e ....................................... 116

Z
Z a is e r s ....................................................................114

N orthw estern Ranker

S ep tem ber 1944

ILS

In

the

Directors' Room
J

C row ded

One W orry

The bride was very much discon­
certed at seeing twin beds in their
bridal suite.
“What’s the matter, dearest?” asked
the bridegroom.
“Why, I certainly thought we were
going to have a room to ourselves.”

What’s worrying us is that the gov­
ernment is living not only beyond its
own income but also beyond ours.

C u s to m

S.C. 3/c: “How did you get the black
eye?”
S.C. 1/c: “ For kissing the bride after
the ceremony.”
S.C. 3/c: “ But isn’t that the usual
custom?”
S.C. 1/c: “Yes, but this was three
years after the ceremony.”

Definitions
If definitions drive you daffy, maybe
you’ll enjoy these:
Bartender—One who brings you in
contact with the spirit world.
Sandwich—An unsuccessful attempt
to make both ends meat.
Committee—A body that keeps min­
utes and wastes hours.
Puncture—A little hole in a tire usu­
ally found a great distance from the
garage. (Remember?)
A Good Turn—A turn that gets the
blankets back on your side, of the bed.
Hug—A roundabout way of express­
ing affection.
Jury—Twelve men chosen to decide
who has the better lawyer.
Panhandler—A night orderly in a
hospital.
Conscience—The inner voice that
warns us that somebody is looking.
Poker Face—The face that launched
a thousand chips.

H a za rdou s
F a st T h in k in g

He was conscious that trouble was
brewing when he went out in the morn­
ing. When he got home that night he
learned what he had done.
With tears in her eyes his wife ex­
claimed: “ I know you don’t love me—
you’ve forgotten my birthday!”
“ Darling,” he said, “ I’m more sorry
than I can say, but it is really your
fault.”
“ My fault?” she exclaimed. “ How
can that be?”
He took her hand in his. “How can
I remember your birthday,” he asked,
“when there is never anything about
you to remind me that you are a day
older than you were a year ago?”

Dr.: The thing for you to do is to
stop thinking about yourself—to bury
yourself in your work.
Patient: Gosh, and me a concrete
mixer!

D e fin itio n s

Mason-Dixon Line: The division be­
tween “yo all” and “youse guys.”
Back-Slapper: A person who hopes
he can make you cough up something.
Morale: Sumpin’ dat keeps yo’ feet
goin’ when yo’ haid say yo’ cain’t take
anudder step.
Waffle: Pancake with a non-skid
tread.
Hypocrite: A boy who comes to
school with a smile on his face.
Ignorance: When you don’t know
something and somebody finds it out.
Wealth: An economic substance—
NOT created by taking a dollar from
someone and giving it to someone else.

r

S ea son ed

P la in S p e a k in g

Young Lady:
held me up and
Officer: Miss,
pig-latin, maybe

Officer, a robber just
stole my aunt’s pay.
if you’d stop talking
I could help you.

■it

<

She: All extremely bright people
are conceited.
He: Oh, I don’t know. I’m not.

-*

S ym p a th y

Lawyer: What’s to be different about
this will?”
Mr. Henpeck: I’m leaving every­
thing to my wife providing she mar­
ries again within a year—I want some­
one to be sorry I died.
June 1 4

Lawyer: You embarrassed the jury.
Defendant: Can I help it? I still
say that’s what I was doing on the
night of June fourteenth.

Speaking of conceit, there was the
girl who was so used to having her
own way that she wrote her diary
three weeks in advance.

Y o u B etch a !

'iL

k

CONVENTIONS

N o W on der

S ep tem ber 194b

k

N o t W h a t?

A candidate for the police force was
being verbally examined.
“ If you were by yourself in a police
car, and were being pursued by a des­
perate gang of criminals in another car
doing forty miles an hour on a lonely
road, -what would you do?”
“Fifty,” promptly replied the candi­
date.

N orthw estern B anker

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

4-

Bride: John, dear, let’s try to make
people think we’ve been married a
long time.
Bridegroom: O.K. You carry the
suitcase.

In th e B a g

Policeman: How did the accident
happen?
Motorist: My wife fell asleep in the
back seat.

i

MAMA!

Daddy’s home from the civilian
defense meeting!

Sept. 3-4, IO W A , Fort Des Moines Ho­
tel, Des Moines
Sept. 19-20, N A T IO N A L A S S O C IA ­
T IO N OF BA N K A U D IT O R S AN D
C O M P T R O L L E R S , Cleveland, Hotel
Cleveland
Sept. 24-27, A M E R IC A N B AN K ER S
A S S O C IA T IO N , Chicago
Oct. 25-29, F IN A N C IA L A D V E R ­
T ISE R S ASSN ., Edgewater Beach
Hotel, Chicago
Nov. 10-11, N E B R A S K A , Hotel Fontenelle, Omaha

Yes, there’s a R E A L Welcome
awaiting you in D es M oines

To our hundreds of friends and customers among bankers ail over Iowa, we
extend a cordial welcome to Des Moines and to the 58th Annual Convention of
the Iowa Bankers Association.
Through alert attention to the everyday business of banking in wartime, Iowa
bankers are making substantial contributions to all-out war effort.
will come, is still in doubt.

When X-D ay

But it may be even nearer than is yet apparent.

While maintaining every vital war activity, you’ll still want to take part in the
post-war plans that will certainly be considered at this year’s conference.
So we hope that you’ve already made plans to be in Des Moines beginning Sep­
tember 3.

r'

tSfl

\ f f f ^ <jp*

tr y t
bnufuTf

W e look forward to seeing you.

mats.


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

BANKER
CORPORATION

'

ÿ

'i¥ ea % ù f 'H / elca m e . . .

To The Bankers of Iowa
The nicest thing a b o u t a C onvention,

to Des M oines, S eptem ber 3rd and

in our opinion, is the o p p o rtu n ity it

4th, fo r the 1944 W a r C onference o f

a ffo rd s to

the Iowa Bankers A sso cia tio n .

m eet and

to

visit w ith

custom ers and friends, fa c e to fa c e .
W e look fo rw a rd to seeing you in Des
Such a privilege

merits the

hearty

w elcom e we extend to those com ing

M oines.
do

to

If there is anything we can
make

your C onvention

visit

more pleasant and p ro fita b le we shall
be h a pp y to serve you.

ya o v a â , ^ .a n .a e & t 'S a ttû

I owa -D es M oines N ational B ank

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

& TRUST COMPANY
M e m b e r Federal Deposit Insurance Corporation