Full text of The Northwestern Banker : September 1948, 53rd Year, No. 734

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S E P T E M U E It
194a

- ■

What Bankers T
of Raising
Rediscount Rate
Survey on Page 21

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

PAUL PORTER (RIGHT), J. P. WOLCOTT DISCUSS INFLATION— Page 15

GOOD EARTH
The "Good Earth" of the middlewest is again produc
ing a miracle crop of corn, oats, and other grains, to
help feed the world.
Located in the very center of this bountiful food belt
is the MERCHANTS NATIONAL BANK of Cedar Rapids.
An account here guarantees you prompt and accurate
service on your grain drafts and other items in the
grain center of the world.

/ fú L / a y t

THE
MERCHANTS NATIONAL
==>B M |
=
O F F I C E R S
JAMES E. HAMILTON,
Committee

Chairm an

Executive

S. E. COQUILLETTE, Chairman of the Board

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JOHN T. HAMILTON II, President
MARK J. MYERS, Vice

President

FRED W . SMITH, Vice President
GEORGE F. MILLER, Vice President and
Trust Officer
M AR VIN R. SELDEN, Vice President

, . J
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S

R. W . M ANATT, Vice President
L. W . BROULIK, Vice President
PETER BAILEY, Cashier
R. D. BROW N, Assistant Cashier
O. A . KEARNEY, Assistant Cashier
STANLEY J. MOHRBACHER, Asst. Cashier
EVERETT C. PRATT, Assistant Cashier
C. F. PEREMSKY, Assistant Cashier
VICTOR W . BRYANT, Assistant Cashier
JAMES E. COQUILLETTE, Assistant Cashier

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

Northwestern Banker, published m onthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c
per copy, $3.00 per year. Entered as Second Class M atter January 1, 18 95 at the Post Office at Des Moines, Iowa, under A ct o f March 3, 1879

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Federal Reserve Bank of St. Louis

B o'

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aaf

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Banks that use La Monte Safety Paper
create a sound basis for customer
satisfaction and good will for they
are providing their clients with the
w o r ld ’s best check paper.

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Thousands o f banks and many o f the larger corporations
use La Monte Safety Papers with their own trade-mark or
design made in the paper itself. Such INDIVIDUALIZED check
paper provides maximum protection against both altera
tion and counterfeiting — makes identification positive.

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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

By Telegraph, Teletype,
Telephone, Prirate Wire and Cable9
Continental Illinois National Bank Transfers

Millions Every Hour
D ay in and day out more than a quarter o f a
million dollars a minute! T h at’s how speedily business
funds are transferred from coast to coast and around the
world by this bank.
Y ou are cordially invited to use these facilities, our
experience, and our network o f correspondent banks in
your daily business operations at home and abroad.

Continental Illinois National Bank
and Trust Company of Chicago
C H IC A G O

90, IL L IN O IS

MEMB ER FEDE 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 I O N

N o r t h w e s t e r n Banker, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

Utility Round Table

OF IRVING TRUST’S

Public U tility
CONFERENCES

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Federal Reserve Bank of St. Louis

The " NeWJ o i n t l y • • •

U tility operating* companies that
once could turn to their parent
holding com pany for construction
capital and other financial needs
have found the counsel offered at
the Irving Trust Com pany Investor
Round Table Conferences a boon to
a better understanding o f their
newly acquired responsibility. T o
day the bank will com plete its
eighth such conference, the final
m eeting of the current series that
began last October.
Since that
time nearly 100 senior officers, in
cluding
three
board
chairmen,
eighteen
presidents,
tw en ty-six
vice presidents and fifteen treas
urers, representing forty-fiv e utili
ties operating in nineteen states,
have attended the m eetings.
In
all-day m eetings, participants in
discussions have included invest
m ent bankers, top-ranking secu
rity analysts, insurance com pany
officers representing the institu
tional buyer’s viewpoint, executive
officers of the N ew Y ork Stock
Exchange, and several financial
editors from N ew Y o rk daily news
papers.

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'IK'--*--

• Under the direction of a vice president, who for many years
was prominent in the management of utility companies, we
maintain a distinctive Public Utility Department. This Depart
ment can assist your bank to solicit effectively and serve
expertly the highly specialized utility organizations in your
territory. I f these utilities have recently become independent
operating companies, they offer you important new business
opportunities.

welcome your inquiries concerning this

special service.

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ONE W A LL STH EET

> E \V Y O U R 15, > . Y .

M E M B E R F E D E R A I, D E P O S IT I N S U R A N C E C O R P O R AT IO N

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

B a n k

I s

. . .

. . . by its willingness to take care o f its

custom ers’ requirements. Y o u r

inquiry

on any phase o f correspondent banking

is cordially invited.

CENTRAL HANOVER
BANK

N o r t h w e s t e r n Ba nke r, S e p t e m b e r , 1948

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

AN D

TRUST

COMPANY

N EW Y O R K

M e m b er Federal D e p o s it In suran ce Corporation

Captain Nicholas Gilman , Jr.

on horseback galloped through
out the countryside bearing the news
when the Declaration of Independence was
adopted. In Exeter, New Hampshire, the
fateful message was dispatched to Colonel
Nicholas Gilman, whose son, young John
Taylor Gilman, then read it in the public
square while the townspeople listened “ with
unutterable emotion.”
The house where the message was de
livered was built in 1721 by Nathaniel
Ladd, a member of one of Exeter’s more
prominent families who were among the
first settlers. Another Nathaniel Ladd
sounded the trumpet that signaled an early
revolt against the royal governor and was
the only one of the rebels crafty enough
o u r ie r s

The Tap Room in the old kitchen

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Federal Reserve Bank of St. Louis

The M ajor

John Sullivan Room

to escape trial. One eccentric member of
the family kept a coffin in the house in case
of sudden demise and invented a pair of
wings which he maintained would enable
him to “ cleave the air like a bird” until he
experimented from an upstairs window.
In 1747 the house was bought by
Daniel Gilman and for many years
was owned by members of the Gil
man family who were said to be as
numerous as the sands on the sea
shore and who played an influ
ential role in affairs of state and
nation. One of the most distin
guished was Colonel Nicholas Gil
man who as state financier earned
the title of “ the brains of the Revo
lution in New Hampshire.” Impor
tant meetings were held, state
secrets discussed and the Rattle of
Bennington planned in the room in

his house which served as the treasury. An
other room was used as the jail where
debtors were chained to an iron ring which
may still be seen.
Nicholas’ son, John Taylor Gilman,
proved his patriotism at an early age by
marching off to Cambridge with a band of
volunteers the morning after the Battle of
Lexington. Lie succeeded his father as state
treasurer and served a number of terms as
governor. At the alarm of Portsmouth in
1814 he took personal command of a large
detachment of militia. His brother, Cap
tain Nicholas Gilman, Jr. who was on
Washington’ s staff, participated in many
important battles and later served as dele
gate to the Constitutional Convention and
as Senator from New Hampshire.
The Ladd-Gilman house is now owned
by the New Hampshire Society of the
Cincinnati and is commonly known as
Cincinnati Memorial Hall.
The Home, through its agents and
brokers, is America’s leading insurance
protector oj American Homes and the
Homes of American Industry.

T H E

FIRE

•

H O M E

N EW Y O R K
AUTOM OBILE

•

MARINE INSURANCE

HOW THE CHASE CAN BENEFIT YOUR BUSINESS OVERSEAS
T h e Chase makes banking facilities directly available in the w o rld ’s com m ercial centers
through its ow n foreign branches and close correspondent relationships with leading
banks throughout the w orld . A m o n g the services provided are:

Cashing of drafts under Travelers’ Letters of Credit
Effecting Collections • Making Remittances
Opening Commercial Letters of Credit
Supplying Credit Information
Assisting in arranging Business Connections
Supplying information on Exchange Conditions and Regulations
M any Chase correspondents in the U nited States use these ser
vices extensively, having found that by so d o in g, they can save
their customers both time and m oney in the transaction o f their
overseas business.

Send for our booklet rrHou' the Chase Can
Benefit Your Business Overseas

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

N o r t h w e s t e r n Banker, S e p t e m b e r ,

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

1948

1. Savings
2. Commerciai Ledgers
3. Loans and Discounts
4. Mortgages
5. Trust Accounting

post them

6. Payroll
7. Daily Statement
8. General Ledgers

all on this
one machine

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When the National Multiple-Duty Accounting Machine is used for different
jobs, a separate stop-bar is provided for each job, and the stops are arranged to fit
that particular application. T o change from one type of work to another, requires
merely unlatching the bar in use and replacing it with another. This takes but a
matter of seconds, for there are no screws, catches, or fittings to fuss with.
Trained operators are not necessary— it can be operated by anyone who can
type and run an adding machine. National’s standard, full-visible, flexible key
board increases listing speed. National’s ciphers are automatic, corrections can be
made before depressing the motor bar, and the printing line and all previous post
ings are fully visible. There is front-feed insertion for forms, and many automatic
features which simplify its adaptation to different kinds of work.
D o you know about the other Nationals expressly designed for bank use?
They’re all described in the new, illustrated 64-page booklet shown at the right.
Your local National representative will be glad to hand you your copy.

THE N ATIO N AL

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

A NEW, ILLUSTRATED 6 4 - PAGE
BOOKLET describes the services
of each of the m any National
machines expressly designed
for bank use. Shows how they
can speed work in every de
partment. Ask your local N a
tional representative to bring
you your copy. Y o u ’ll find it
helpful. H ave it handy when
accounting problems arise.

e /fca û cn a l

CASH R EG ISTER COMPANY, D A Y T O N 9 , OHIO

CASH RIGISTCRS • ADDING MACHINES
ACCOUNTING MACHINCS

N o r t h w e s t e r n Banke r, S e p t e m b e r .

1948

Y/fe ¿ oì* calls n\y
RemingtonNoiseless a
gilt-edged investment"

"'D o you know that were getting almost a 15% return on a $2500 invest
ment thanks to your new Remington Noiseless! my boss exclaimed. 'The
$2500 is what you, your typewriter, operating supplies and taxes cost us
annually ... and we’ve gained 15% in efficiency with your new Remington
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ment-figured over a period of five years —and we now get maximum
return on our typing dollars!’
"Speaking from a dollars and cents standpoint... that kind of
j
savings can’t be beat! Neither can the crisp, distinctive printwork of my Noiseless. It’s really an unbeatable combination of
typing perfection with quiet!’’

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Produces 5% /esç ° re ^ r g y .
c°ndiri0ns
under noisy
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conversely

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lowee,

e S f n e r C O st_

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

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Beautiful Printwork with every character eventoned and highly legible!

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A N A LY SIS

AND

SA FEK EEP IN G

S E C U R IT IE S

PURCHASE

AND
OF

GOVERNM ENT

SALE
U.

BONDS

Which

CR EDIT
I N F O R M A T IO N

o f these services

IN T E R N A T IO N A L
B A N K IN G

F A C IL IT IE S

do you need ?
PERSO N A L

G IF T C H E C K
S E R V IC E
Thousands of correspondent banks all over the country
are taking advantage of the complete banking facilities

COM PLETE

CORPORATE

AND

PERSONAL

TR U ST

S E R V IC E S

available at Manufacturers Trust Company. Many of our
services are designed especially to aid our correspondents in
increasing their revenue through a wider range of banking
facilities which they may offer to customers. Your inquiries
are invited regarding any of the services listed. . .
or any other in which we may be able to serve you.

M ORTGAGE

M ANAGE

MENT S E R V IC E

P A R T IC I P A T IO N

LOANS

LO C A L E N T E R P R IS E S

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

Manufacturers
Trust Company
55 Broad Street, Nexo York 15, N

Member Federa I Deposit Insurance Corporation
N o r t h w e s t e r n Banke r, S e p t e m b e r , 1948

YOUR Bank
Needs a Correspondent
That “Understands”
The N ew York Trust Company

w„

ith top-ranking connections across

studies the problems

the United States and around the world,

o f its correspondent banks

The New York Trust Company’s facilities,

and adapts its many

conformed to your bank’s specific needs,

services to the particular

include every type of recognized

requirements of each .

banking service.

T
N

Commercial Banking
and Loans

ork

ru st

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Executor and Trustee
Services

om pany
io o

Broadway

Investment Review
Accounts
Custody Accounts

Madison Avenue and 40th Street
Ten Rockefeller Plaza

Member of Federal Deposit Insurance Corporation

H o r f h w e s t e r n Banke r, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

Corporate Trusteeships
and Agencies

13
★

AS YO U R BANK
You are cordially invited to use The First National
Bank of Chicago as your correspondent. To serve you,
and to insure prompt attention in all correspondent
bank relationships, there is an experienced group of
officers which devotes its entire time to this work.
Edward

B rown,

Ja m e s B . E o r g a n

Chairman
B e n t l e y G.

Vice-Chairman
BANK

Jo h n

President

AND

BANKERS

DIVISION

A nton

J. N u g e n t
W. L e w is

T hom as
H arold

M e l v in H . T h ie s
V e r n e L . B a r t l in g
Charles

M cC loud

N ew hall

E dw ard D ecker
V ic t o r C. v o n M e d in g

OFFICERS

Vice-President
Vice-President
Vice-President
Vsst. Vice-President
Asst. Vice-President
Assistant Cashier
Assistant Cashier
Assistant Cashier

The First National Bank of Chicago
Building with Chicago and the Nation Since 1863
MEMBER

FEDERAL

D EPO SIT

IN SU RA N C E

C ORPORATION

★

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

*
N o r t h w e s t e r n Banker, S e p t e m b e r ,

Ï9 4 8

Bankers:

Our Advertising Builds Your Sales o f

N A T I O N A L CITY BANK

Travelers Checks

The majority of your clients and prospects are interested in travel— read
publications carrying National City Bank of New York Travelers Check
advertising. Often, all that is necessary to make a sale is a mere sugges
tion on your part when clients withdraw funds. It is profitable business
because you collect % of \% on all sales and keep it all— no part of the
commission is remitted to us.
Write for a leaflet showing you how you can tie in with a great
international advertising campaign

d r i’u S -t

f y i c 'i /

J) ( rW e

T HE N A T I O N A L C I T Y B A N K

OF NEW Y O R K

Head Office: 55 Wall Street, New York
M em b er F e d e ra l D ep o sit In s u ra n c e C o rp o ra tio n

N o r t h w e s t e r n Ban ke r, S e p t e m b e r ,

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

1948

ihi tir lid i ta r

w J y m Nlì m .m r hi p \
M L ÆÙ)^ j m Jj Ivi
i Ni I m
f

DES MOINES
O l d e s t Financial Journal W e s t of the Mississippi

T h e fo llo w in g letters are from
N orth w estern B a n k er readers. Y ou r
view s and op in io n s on an y su b ject
are w elco m e in this colu m n .

"Why Should Banks Make Unsound
Home Loans?"
Editor's N o te : Some time ago, Look Maga
zine sponsored the building o f a home to
cost $7,500. Since this article appeared,
the publication has issued a news release
in which it says, “ The recent tightening up
o f bank loans is the major snag in solving
the low cost housing crisis. Building loans
for people in the $7,500 class are hard, if
not impossible, to get today. The majority
of people in this price range cannot raise
the necessary down payment for construc
tion loans; many haven’t even land purchase
money, and distributors cannot be asked to
assume these burdens.”
Frank P. Syms, 505 Fifth Avenue, New
York, who represents the Regional Banking
Journals of which the N orthw estern
B an k er is one, received a copy of the re
lease and answered it to the editors of Look
as follows:
“ I have just finished reading a news re
lease from
your
publication,
entitled
“ Financing Proves Bottleneck o f Low Cost
Mousing Problem" and as I assume that

(Turn to page 72, please)

ON THE COVER
Paul Porter (right) former OP A ad
ministrator and now a special adviser
to President Truman, is shown con
ferring with Congressman Jesse P.
Wolcott (Republican, Michigan), when
he appeared before the House Bank
ing Committee at the recent special
session of Congress called by the Presi
dent. As committee chairman, Mr.
Wolcott reviews a chart presented by
Mr. Porter as part of the President’s
proposed anti-inflation program. When
this photograph was taken, Mr. Porter
was requesting legislation which
would give the administration au
thority to roll back prices on cost of
living items to last November. For
the fate of this request, and a report
on other recent financial rulings, turn
to “Across the Desk from the Pub
lisher,” page 16.

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

•

53rd Year

•

N o. 734

IN THIS SEPTEMBER, 1948, ISSUE
EDITORIALS
A cross the Desk from the P ublisher............................................................ 16

FEATURE ARTICLES
D ear E ditor ................................. ........................... ..............................................
W hat Bankers Think o f R aising Rediscount R ate...................... .........
.......................................................... A N orthwestern B anker S u rvey
Bankers N am e Their Choice For P resident................ ................ -.............
............ ..............A N orthwestern Banker S u rvey
How a Bank Operates Its Home Planning D epartm ent.........................
News and View s o f the Banking W orld .................... - Clifford De P u y
Bankers You K now — G eorge E. P orter............. ........................................
The A .B .A . Convention.....................................................................................
Devise Special Check fo r Blind People.......................... .............................
A re Dam ages Recovered fo r Loss o f Profits Taxable on Federal
Incom e?— Legal .....................
...........
......................

15
21
22
23
24
25
26
28
30

BONDS A HD INVESTMENTS
Bank E arnings Benefit from Increased Interest Rates.........................
.............. ........... .. ........... ......... ;...Raym ond T rig g er

INSURANCE
How the A g en t Can Get More Bond Business............ Charles G. Roth 41

STATE BANKING NEWS
M innesota News ................................
Tw in City N ew s.........................................
South Dakota N ew s...........................................................................................
Sioux Falls N ew s...................................
North Dakota N ew s...............
Nebraska News ...............................................................
Omaha News ........................... -............................................ ......................
Iowa N e w s .............................................................................................................
Iowa Junior Bankers Plan Group Study Classes..............................
Sioux City N ew s..........................................................................
Coin Collectors Column..........
Conventions — .......................

45
46
49
49
51
53
54
61
64
66
73
73

IN THE DIRECTORS' ROOM
A F ew Short Stories.............. ..... .................... ......... -.............-........ ...... ......... 74
N O RTH W ESTERN

BA N K ER

527 Seventh S t ., Des Moines 9, Iowa, Telephone 4-8163
RALPH W . MOORHEAD
Associate Publisher

CLIFFO RD DE PUY
Publisher
HENRY H. HAYNES
Editor

BEN J. H ALLER, JR.
Associate Editor

MALCOLM K. FREELAND
Associate Editor

ELIZABETH CO LE
Advertising Assistant

H AZEL C. HADLEY
Auditor

SADIE E. W AY
Circulation Department
JOSEPH W . FRANKS
Field Representative

PAUL W . SH O O LL
Field Representative

NEW YORK O FFICE
Frank P. Syms, Vice President, 505 Fifth A v e ., Suite 1806

DE PUY PUBLICATIONS:

Northwestern

Banker,

MUrray Hill 2-0326

Underwriters

Review,

Des Moines Insurance Directory, Iowa-Nebraska Bank Directory.
N o rth w e ste rn Banke r, S e p t e m b e r , 1948

16
In the opinion of the N orthwestern B an ker ,
Mr. McCabe, we believe this new legislation is a
“ warning signal” which may be helpful in pre
venting a further inflation trend, but we also be
lieve that the causes lie further back than our
large money supply. The main cause of all present
day inflation is the tremendous spending by the
United States government which has been goingon for 16 years.
One authority gives the following 8 reasons for
our present high prices:

A c ro ss th e D e sk
F ro m th e P u b lis h e r
(Drjoa JJwmaA <B. VYlcQabsi:
Chairman, Federal Reserve Board, Washington, D. C.
The 80th session of Congress passed some legis
lation aimed at putting a slight pressure on the
inflation brakes. The four methods as outlined by
Congress are these :
1. One year Treasury certificates have been
raised from V /8 per cent to iy 4 per cent as of
October 1, 1948.
2. Federal Reserve rediscount rate has been
raised from i y 4 per cent to 1 y 2 per cent.

3. Congress passed an amendment to the Fed
eral Reserve Act which empowers the Federal
Reserve Board to increase the required reserves
of all member banks by 4 per cent on demand and
i y 2 per cent on time deposits. It is not expected
that the Federal Reserve Board will take any
action under the new powers until after October
1. 1948.
4. Effective September 20, 1948 to June 30, 1949,
“ Regulation W ” goes into effect with several
changes over the previous law.
The new “ Regulations” include the following:
(a) A y 3 down payment on automobiles.
(b) A 20 per cent down payment on most house
hold appliances.
(c) A time limit of 15 months for completing all
payment of $1,000 or less, with 18 months as the
final date for purchases above $1,000.

N o rth w e ste rn Banke r, S e p t e m b e r , 1948

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

1. Government’s spending more than it took in.
2. Rationing and price control in war years—
without adequate wage control.
3. Necessary shooting away of about half the
country’s production in the war years, but fail
ure to tax back from consumers— to take out of
existence— the extra bonds and money printed
during the war to pay for that war production.
4. High cost of government in peacetime— tak
ing almost 20 per cent of the country’s production
and income for its own purposes.
5. Paying subsidies to put and keep prices up—
even in a seller’s market.
6. Round after round of post-war general wage
increases to most everybody— thus diluting fur
ther the value of money because there was no
corresponding individual contribution to in
creased production.
7. Too-anxious consumer demand for available
production.
8. Spending of savings and too much unneces
sary buying on credit.

W ith the Marshall Plan in operation and with
an increase in our expenditures for war purposes,
it does not appear that government spending will
be lessened very much in the near future. In the
meantime, the monetary regulations which have
been passed will at least have a psychological
effect and will let borrowers realize that money
will cost a little more.
One prominent New York banker in a letter to
the N orthwestern B anker expressed his views
by saying, “ Let me say that the results of credit
moves of this sort are never predictable. All one
can say is that the recent move is in the right
direction. These credit moves have a tendency to
slow down both inflationary psychology and in
flationary credit. Whether or when one of these
credit moves will bring a turn in the general situa
tion is unpredictable.
“ It should also be added that the present in
flationary movement is not now in the main a
credit inflation. The real source of the inflation
is in spending by the United States Government,
and in other governmental policies, including the
support of farm prices at too high levels.”
In the United States there are approximately
7,000 banks which are members of the Federal

17
Reserve System and these are the only ones which
are affected by the new reserve requirements
which may go into effect October 1st.
Tn the final analysis, Mr. McCabe, it is a question
whether our present inflation, our high prices and
the constant demand for higher wages on the part
of the unions can be held down by such mild
monetary legislation— in some respects it is like
locking the barn door after the horse has escaped,
but now we must lasso him if we can.

Cbsjah dísüibsüd Udovsa:
Only L iving E x-P resid en t, U. S. A.

During the celebration of your seventy-fourth
birthday last month, you gave a marvelous def
inition of what America means to you, and the
N orthwestern B anker believes if every Ameri
can would be guided by the inspiration of your
words, it would be a better country in which to
live.
In your address you said, “ America means far
more than a continent bounded by two oceans. It
is more than pride of military power, glory in war,
or in victory. It means more than vast expanse of
farms, of great factories, or mines, magnificent
cities, or millions of automobiles and radios. It
is more even than the traditions of the great tide
westward from Europe which pioneered the con
quest of a continent. It is more than our litera
ture. our music, our poetry. Other nations have
these things also. It is those moral and spiritual
qualities in free men which fulfill the meaning of
the word American. And with them will come
centuries of further greatness to our country. ’ ’

Russia today knows nothing of what the spirit
of America means to us, or to many other people
around the world who would like to live as Amer
icans do, but your personal example, Mr. Hoover,
is indeed an inspiration to every true lover of
freedom and of the American way of life.

CVsuaA j/. of. ffoboJiiAon:
Deputy Comptroller of the Currency, W ashington, D. C.
W e think your plan is a very good one— to issue
a digest of opinions and interpretations of law
which will help act as a guide in the conduct of
national banks throughout the country.
In commenting on this idea, you said, “ We must
always remember that the goals of bankers and of
bank supervisors are basically identical— namely,
the ultimate maximum benefit and development of
American banking. It is my conviction, and I
hope that of all State and Federal supervisory
authorities, that there is everything to gain by
frank and honest disclosure of the things we are
trying to do and the reasons for doing them, by

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Federal Reserve Bank of St. Louis

willingness to consider every honest criticism
and suggestion, by willingness to admit errors and
scrap unsound doctrines and procedures and to
build better ones.
“ Even so, real improvement of bank supervi
sion is dependent upon the sincere interest of
bankers, expressed through their aggressive co
operation, and giving rise to constructive sug
gestions.”

If our American banking system, Mr. Robertson,
is to continue in its dual capacity, with national
banks and state banks, the N orthwestern
B anker feels sure that the bankers of the coun
try are anxious to cooperate with their bank ex
aminers whenever they call at their respective
institutions.
Our independent banking system must always
be kept on a strong, sound and liquid basis if
it is to withstand the encroachment of those who
wish to have all of our banks controlled by the
national government.

CDsucUx Qchn Jf. Xarnpim:
V ice P residen t, F ed era l R eserve B ank o f Chicago

The N orthwestern B anker has already de
voted another editorial to the question of infla
tion, but we believe that it cannot be too fre
quently discussed at this time, and we were,
therefore, interested in recent remarks of yours
that, “ W e are high up in a major inflation boom.
The best time to do something about the next de
pression is during the preceding boom.”

You then cited figures to indicate how far we
had gone along the upward spiral showing that,
“ The consumer price index is up 73 per cent since
1939. The wholesale commodity price index is
up 117 per cent. Personal income— all wages,
rents, salaries, dividends and other income of
every kind— is at the rate of $211,000,000,000 a
year now. It was $73,000,000,000 in 1939 and only
$85,000,000,000 in 1929. By 1945 it had reached
$172,000,000,000.
“ Outstanding consumer credit at the end of
June, 1948, was $14,200,000,000, up 26 per cent
in a year and up 153 per cent since V-J Day.
Your figures, Mr. Langum, show how big the
“ inflation blaze” has become, and the recent laws
passed by the 80th Congress will sprinkle a “ few
drops of w ater” on the fire without putting it out,
and are precautionary measures which we hope
and believe will help the inflation fire to at least
gradually subside.

N o r t h w e s t e r n Banker, S e p t e m b e r ,

1948

N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

life?

WHERE FRIENDLINESS IS A TR A D ITIO N . . .
WHERE THE P R O M PT , EFFICIENT H A N D '
LING OF EVERY CORRESPONDENT AND
TRANSIT ITEM IS AN IN V IO L A B L E RULE

H a w a i.

Q n te tw L t B a t t a

2>e¿ Molttel, 9(uva
MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

3
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Federal Reserve Bank of St. Louis

4 44
NEW

MADISON
YORK

AVENUE22,

W h a t H u n kers Think
o f Mini.siny

ftvd is
A NORTHWESTERN BANKER
Survey

HEN the Federal Reserve re
discount rate was raised from
114 to IV2 per cent the N o rth
w e s t e r n B an k e r asked a number of
prominent bankers what effect they
thought this might have on helping
to slow down inflation.
The opinions of these bank execu
tives are the basis of this survey.

L. M. GIANNINI

BENTLEY G. McCLOUD
P re sid e n t, F ir s t N a tio n a l Bank o f C h ic a g o

“ I do not believe that it will have
any drastic effect either in connection
with the general business situation or
in the slowing down of inflation. How
ever it is a warning signal, and the
commercial banks in turn will raise
the rates to their customers, which
should indicate to the latter that they
should be careful of their future com
mitments, and not take any specula
tive position on inventory or on ex
pansion policy. If you will look back
over the Federal Reserve record for
a period of years, you will notice that
it has always been the logical policy
of the Reserve Banks to raise rates
when they believe there is a danger
of over-expansion on the part of gen
eral business.”

F. ABBOTT GOODHUE
P re sid e n t, Bank of the M a n h a tta n C o m p a n y
N ew Y o rk , N ew Y o rk

“The recent increases in the dis
count rates of the Federal Reserve
Banks present another step in the
trend toward gradually but moder
ately firming interest rates that has
been in progress since the spring of

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Federal Reserve Bank of St. Louis

P re sid e n t, Bank o f A m e ric a
San F ra n c is c o , C a lif o r n ia

1946. In itself, the influence of the
higher discount rates is largely psy
chological, for the volume of Federal
Reserve discounts and advances is
low and is likely to remain so since
member banks in need of funds are
apt in most instances to sell govern
ment securities rather than to borrow.
But taken in conjunction with other
steps, i. e., the higher rates on United
States certificates of indebtedness and
bills, the reimposition of controls on
consumer credit, and the cautioning
statements of supervisory agencies
against over-liberal loan policies, the
increase in Federal Reserve discount
rates represents the application of
mild but nonetheless essential anti
inflation pressures.”

“ The raising of the rediscount rate
seems to indicate the entrance of a
fairly long period of steadily firming
interest rates which in theory, at
least, should be anti-inflationary. The
most immediate effect of increasing
the rediscount rate has been a rather
general increase of interest rates on
prime loans by a similar amount.
However, even with this increase, the
current level of interest rates will
still be very low.
“ The effect of this increáse on the
general business situation is bound to
be reflected in an upward trend in
the entire rate structure, which in
turn may have a tendency to slow
down the inflationary trend to some
degree. If this effect is accomplished,
it should be helpful to the nation’s
economy.”

R. E. WALES
V ice P re sid e n t, T o o t le - L a c y N a tio n a l Bank
St. Jo s e p h , M isso u ri

“ Referring to the question asked,
as to what effect the raising of the
Federal Reserve rediscount rate from
1% to IV2 per cent will have on the
general business situation, especially
as it relates to slowing down inflation:
“ It is our opinion that the present
rediscount rate of IV2 per cent will
have little effect, if any, on the situ
ation although we feel that it is a
step in the right direction. The Ad(Turn to page 39, please)
N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

Hankers N am e
Their
Ch
Tor I*resident
Five-State Survey Favors
Dewey by Wide Margin

A NOR THWESTERN BANKER
SURVEY

N ORDER to ascertain the political
feeling among bankers in the
N o r t h w e st e r n B a n k e r territory, a
cross section of bankers in Iowa, Ne
braska, Minnesota, North and South
Dakota, were asked, “to express their
choice for the next president of the
United States.”
The names of Wallace, Truman and
Dewey were listed so they could check
them, and a space was left for com
ments.
Based on the total number of votes
received at the time the N o r t h w e st e r n
B a n k e r went to press, the figures are
as follows:

T H O M A S E. D E W E Y
Republican

Dewey
89.5% of votes cast
Truman
8.5% of votes cast
Wallace
1.0% of votes cast
No Choice 1.0% of votes cast
Total
H A R R Y S. T R U M A N
Democrat

“I don’t want a crackpot like Wal
lace nor a vacillating executive in the
White House so what choice could a
person make hut Dewey?”

H E N R Y A. W A L L A C E
Progressive

“Wallace? Hell, no”
“ There isn’t a statesman in the
group”

No Choice
“

“Mr. Dewey will bring to the Gov
ernment sensible financial manage-

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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Federal Reserve Bank of St. Louis

100%

Comments by bankers answering the
N o r t h w e st e r n B a n k e r political poll in
cluded the following:
“Officers and directors and all Re
publicans regard Governor Dewey as
rn able candidate”
“ T believe Dewey can show the way
back to true Democracy”
“ Should have been Stassen”
“Vandenberg”
“A change in these places will not
hurt anybody”
“How about Harold Stassen?”
“ It’s time for a change”
“ No more ‘New Deal’ ”

1948

ment, the best in men fitted to handle
foreign affairs. He will eliminate at
least most of the shysters in govern
ment, all of them if he can. Snyder,
et al, are not even important for the
County Court House”

“ Urge your concerted effort as a
prominent publication in combating
present day trends toward socialistic
and communistic activities of our gov
ernment, and the gradual release of
the government handling and regu
lating private enterprise”
“There is no other logical choice but
Dewey”
“There are 4 votes in this bank for
Dewey”
“Dewey—but definitely!”
“We feel Gov. Dewey will have more
and better cooperation in the House
and Senate and will be an influence
for sounder business, political and in
ternational matters”
“ 1 believe Dewey will make a good
President”
“It is imperative to have business
management established in our Na
tional Life. Why rob the taxpayer
cf his earnings to let the government
spend like a drunken sailor and then
call it a curb on inflation”

“With men such as Dewey and
Warren and with records like they
have, they should be able to give the
whole country the same kind of serv
ice”
“Let us pray—Dewey”
“Expect business-like administra
tion from Dewey”
“Wallace seems a little pink—Tru
man—too small for the job, originally
came out of the wrong gang—Kansas
City”
“The Republicans are all for the rich
and keep everybody’s nose to the

(Turn to page 44, please)

¡js

' : i - ^; -

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ment personnel. Note the model homes in the background, the
rack for current magazines on the rear wall, and another rack
at the left for free building literature.

B U IL D IN G IN F O R M A T IO N — Here is one view in the Home
Planning Department o f the Iowa State Trust & Savings Bank,
Estherville, Iowa, with K . J. M cD onald, president, discussing
promotion plans with Mrs. Lester M cC leary, one of the Depart-

Hotr a Hank Operates
Its H om e Otannimj Oepartm eat
What the fowa Trust and Savings Bank of
Estherville, Iowa, Has Done to Promote Home Loans
FTER a little over a year of op
eration, the Home Planning
Department of the Iowa Trust
and Savings Bank of Estherville,
Iowa, has proved successful to the
point where now it takes its place
among the many other community
building services which the institution
has available, according to K. J. Mc
Donald, president.
This Home Planning department
came into being as the result of an
idea one of his employes gave Mr.
McDonald. The suggestion was made
that since so many people seem to go
into home planning and building com
pletely ignorant of the many struc
tural and financial pitfalls awaiting
them, why couldn’t the bank, which
was interested in making loans to

IN T E R IO R D E C O R A T IN G — Another
view in the Home Planning Department
shows M rs. K enn eth K autz, left, and Mrs.
K . J. M cD on ald, both standing, helping
two local women with their decorating
problems. The wall case contains books on
interior and exterior building and design
ing.

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Federal Reserve Bank of St. Louis

prospective home-owners, do some
thin■■■ about helping these builders
avoid costly mistakes?
Mr. McDonald discussed the idea

with his wife, who graduated in art
from the University of Minnesota, and
who has had experience in merchan(Turn to page 67, please)

News and Views
OF THE BANKING WORLD
By C L IF F O R D DE P U Y , Publi sh er

e . d r i s c o l d , president
of the First National Bank of the
Black Hills, Rapid City, South Da
kota, in addition to being a very fine
banker, is now included in the list of
“authors,” as he has just written a
book, “Seventy Years of Banking in
the Black Hills,” which covers the
period from 1876 to 1946.
The book is dedicated to his father,
Robert Henry Driscoll, of whom he
says, “He inspired confidence because

obert

people knew such
never misplaced.”

confidence

and at one time president of the First
National Bank of Sioux City, died re
cently at the age of 83.
Mr. McHugh was born in Belleville,
Ontario, Canada, on August 29, 1865.
He came to the United States in
1891, starting his banking career with
the State Bank of O’Neill, Nebraska.
In 1898 he joined the Iowa State Na
tional Bank at Sioux City of which he
became president. He later merged

was

In commenting on the pioneers in
the Black Hills, Mr. Driscoll says, “ My
father has told me that the early day
businessmen, early day bankers and
early day lawyers were far and above
the average men in these groups. He,
himself, was a Harvard graduate and
college teacher before he came west,
and his first roommate in Deadwood
was a Princeton graduate. One of his
early associates was a Congressman
from Kentucky, and several of his
early banker friends had held respon
sible positions in New York, Boston
and elsewhere.
“We can think of no better way to
tell this than by telling the story of 70
years of banking in the Black Hills
which is the story of several banks
that merged into what is now the First
National Bank of the Black Hills. To
do this is to tell of the men who
founded and operated those banks.”
The International Bank for Recon
struction and Development for the

fiscal year ended June 30, 1948, had a
total income for this period of $18,703,978. After deducting expenses amount
ing to $11,577,848 and amounts for the
Special Reserve aggregating $3,051,478,
the net income for the year was $4,094,652. This was sufficient to elim
inate the deficit of $1,063,805 existing
on June 30, 1947 and to provide a net
income at June 30, 1948, of $3,030,847.
During the year, the subscribed cap
ital stock of the bank increased $261,500,000 as the result of the subscrip
tion to 2,000 shares by Australia, and
380 shares by Finland, and the sub
scription to 6 additional shares by
Paraguay, 133 additional shares by
Egypt, and 96 additional shares by
Iran. The total subscribed capital
stock at June 30., 1948, amounted to
$8,286,000,000.
John McHugh, former president of
the Chase National Bank of New York
N o r t h w e s t e r n Ban ke r, S e p t e m b e r ,

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Federal Reserve Bank of St. Louis

1948

Mr. Carnegie sailed recently for
England, and speaking of that country,
he said, “ The English are a bettermannered and a better-speaking peo
ple than the Americans. The English
had culture and grand manners when
there was nothing in America but the
Indians. The people who immigrate
to America are not usually members
of established families.
They are
usually unlettered farmers, tradesmen
and workers.”
And yet England comes to us for our
dollars and our goods in spite of our
“unlettered farmers and workers.”
You better stay in England, Mr.
Carnegie.
The total income received by indi
vidual Americans in 1947 reached an
all-time high of 190 billion dollars,

JOHN M cH U G H
1865-1948

four banking institutions to form the
First National Bank. In 1910 he was
elected president of the Iowa Bankers
Association. He left Sioux City for
New York in 1915 and became associ
ated with the Mechanics and Metals
National Bank which in 1926 merged
with the Chase National Bank.
He was a former president of the
New York Bankers Association and
for 18 years was on the executive com
mittee of the American Bankers Asso
ciation.
Mr. McHugh retired in 1943 and at
the time of his death was living in
Chappaqua, New York. He is sur
vived by his widow, Mary McHugh,
and a daughter, Mrs. Gerald F. Beal,
of New York.
Dale Carnegie, author of “ How to
Win Friends and Influence People,”
should re-read his own book, because
a recent statement he made should
help him to lose friends and alienate
people about as fast as anything.

which averages out to $1,323 per cap
ita, according to the commerce de
partment.
The per capita income was up 9 per
cent from the 1946 average of $1,213.
The grand total was up 11 per cent
from the 1946 figure of 171 billion dol
lars. States in the northwest farm
belt led the parade, pocketing 20 per
cent more cash than the previous year.
The far west showed last year’s
smallest relative increase of any re
gion. Decline of war industry after
V-J Day was cited as the principal
reason.
Nevada’s citizens were, on the aver
age, the richest in the nation, with a
per capita income of $1,842. Lowest
average was Mississippi’s $659.
At the top of the scale, behind Ne
vada, were New York, $1,781, and
North Dakota, $1,678.
Iowa’s per capita income was $1,144
for 1947.
All 15 southern states were among
the 16 states in the nation with the
lowest averages.
One of the most youthful bankers
we know of is A. J. Cray, president of
the Exchange State Bank of Lime
Springs, Iowa, who played 18 holes of
golf on his 84th birthday.
Mr. Cray has been president of the
Exchange State Bank since April 1,
1907, and, while he spends his winters
in California, he still takes an active
interest in the affairs of his institution.
If there are any more “young bank
ers” in their 80’s who still play golf,
the N o r t h w e st e r n B a n k e r would like
to hear about them.
(Turn to page 49, please)

K an lier s

YK n o w

( f V 'o i ï / i * l i .

P o rter
President, The First National Bank
of St. Joseph, Missouri
“Heading into his 49th year in the hanking business”

EORGE E. PO R T ER , chief execu
tive of the widely known First
banks of St. Joseph, Missouri, is head
ing into his 49th year in the banking
business. Mr. Porter is president and
chairman of the hoard of the First
National Bank and First Trust Com
pany and chairman of the board of
the First St. Joseph Stock Yards
Bank. The combined resources of
these three financial institutions is
$40,000,000 with deposits of the two
hanks aggregating $37,324,000.
Mr. Porter began his business ca
reer working at the Farmers Bank of
Maitland, Missouri, in 1900: then was
with the Tootle - Lemon National
Bank (now the Tootle-Lacy National
Bank) until 1907. For the next 20
years Mr. Porter was engaged in sell
ing commercial paper and in the in
vestment and mortgage business, a
phase of his career which gave him

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Federal Reserve Bank of St. Louis

that extra experience that has made
his judgment so valuable to fellow
officers at the First banks. Whether
it is a personal or a business matter
brought to his attention by any officer
or employe of the bank, Mr. Porter
gives it the same careful analysis that
has always characterized his work.
After leaving the Tootle-Lemon
Bank in 1907 he went with the com
mercial paper firm of Hollingshead
and Campbell of New' York. For one
year he was connected with the Chi
cago office, traveling throughout the
middlewest. In 1908 he joined the
firm of McCluney and Company of St.
Louis, commercial paper dealers, re
maining with them until 1915, when
he moved to St. Joseph and formed a
co-partnership (Ford and Porter)
with Frazer I,. Ford, late president of
the First National Bank of St. Joseph,
and dealt in bonds and first mortgage

real estate loans. He was in the ac
tive management of this firm until
1927 when he joined the force of the
First National Bank and the First
Trust Company as first vice president
and director. He continued in this
capacity until Mr. Ford’s death in
April, 1947, when he was elected to
his present positions.
George Porter and Mary Lacy were
married in 1912 and they had four
children, Mary Lacy, now Mrs. Gerald
C. Snyder, Waukegan, Illinois; George
E. Porter, Jr., who was lost at Bataan;
Ellen Lacy, now Mrs. Robert R.
Clark, Portland, Oregon, and Graham
G. Porter, assistant cashier of the
First National Bank of St. Joseph.
Mr. Porter is trustee of several St.
Joseph charitable trusts and has rela
tionships with several other business
and civic groups.

N o r t h w e s t e r n Banke r, S e p t e m b e r , 1948

The A . H. .4
0 'onvention

¡ l i

Dates of 74th Meeting in Detroit Are
September 26-29, With Headquarters
At Book-Cadillac and Statler Hotels
Remington, vice president and trust
officer, Lincoln Rochester Trust Com
pany, Rochester, New York; Preston
Delano, comptroller of the currency,
Washington, D. C.; H. E. Cook, direc
tor, Federal Deposit Insurance Cor
poration, Washington, D. C.; Lawrence
Clayton, board of governors of the
Federal Reserve System, Washington,
D. C.; and President Dodge.

Four Divisions

§l¡

Joseph M. Dodge, President, American Bankers Association

ATIONAL leaders in the fields
of education, industry, and
finance are among the speakers
who will address the 74th Annual Con
vention of the American Bankers As
sociation, which will be held in De
troit, Michigan, September 26th-29th,
it is announced by Joseph M. Dodge,
president of the ABA, who is president
of The Detroit Bank in the convention
city.
The convention sessions, which will
begin on Monday, September 27th,
with meetings of the four divisions of
the Association, will be preceded by
a full day of meetings of committees,
commissions, councils, and working
groups on Sunday, September 26th.
Because of the size of the conven
tion, which will bring more than five
thousand bankers to Detroit, joint
headquarters will be maintained at the
Book-Cadillac and Statler Hotels; and
some of the division meetings will be
held at other hotels in the city.
Among the speakers at the general
and division meetings are Dr. Marcus
Nadler, professor of finance, New York

N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

University, New York; Gwilym A.
Price, president, Westinghouse Elec
tric Corporation, Pittsburgh; John
Lawrence McCaffrey, president, In
ternational Harvester Company, Chi
cago; Fred I. Kent, director, Bankers
Trust Company, New York; Dr. Ken
neth McFarland, superintendent of
schools, Topeka, Kansas; John W.

Bank Women to Meet
The 26th Annual Convention of the
Association of Bank Women will be
held at the Hotel Fort Shelby, Detroit,
September 24th, 25th and 26th. Miss
Willa A. Riley, Association president
and assistant vice president of the
Florida National Bank of Jacksonville,
has appointed Miss Helen E. Gray as
general chairman. Miss Gray, person
nel assistant for women at the North
ern Trust Company in Chicago, an
nounces that the program is practically
complete and has as its theme, “ Prog
ress with Vision.” A large attendance
is expected from among the 850 mem
bers.

The four divisions of the Associa
tion will have their annual meetings
and elections of officers on Monday,
September 27th. In the morning, the
Savings and Mortgage Division will
meet at the Detroit-Leland Hotel, and
the State Bank Division at the Statler
Hotel. The National Bank Division
and the Trust Division will meet in the
afternoon, the National Bank Divi
sion at the Statler and the Trust Di
vision at the Detroit-Leland.
The annual meeting of the State As
sociation section of the ABA will be
held starting at 2:00 p. m., Monday,
September 27th, in the English Room
of the Book-Cadillac Hotel, it has been
announced by Harry C. Hausman,
president of the section and secretary
of the Illinois Bankers Association.
The program includes addresses by
Mr. Hausman; Ford B. Russell, presi
dent, The Farmers National Bank and
Trust Company, Ashtabula, Ohio; Merle
E. Robertson, president, Liberty Na
tional Bank and Trust Company,
Louisville, Kentucky; Fred W. Greene,
executive secretary, North Carolina
Bankers Association, Raleigh; and
Harold Stonier, executive manager,
ABA, New York. A business session
will follow with election and installa
tion of new officers.

General Session
The first general session of the con
vention will be held on Tuesday morn
ing at the Detroit Masonic Temple.
President Dodge and Mr. Price will
deliver the principal addresses at this
session. Henry H. Sanger, chairman
of the executive committee of the Man(Turn to page 51, please)

Di r e c t

Sending

• W e are strategically located to give you the quickest collec
tion and transit service.
• To insure the best results flowing from our central location
we send your items by air or rail mail, whichever is
faster.
• To save time and money, we route all collections and transit
items direct, wherever possible.

The Omaha
National Bank
Member F e d e ra l

D e p o sit In s u ra n c e C o rp o ra tio n

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

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

I0i>risi>

Sprr

for

H U n d PvopU *
Omaha National Bank Provides
New Service for the Handicapped
SIGNING A CHECK with his thumbprint in the above picture
is L. P. Peterson (righ t), blind operator of the Omaha Radio
Engineering Institute, as John M. Sperry, assistant cashier
(le ft), opens the first checking account for blind persons. This
new special system o f checking accounts for the blind was de
vised by the Omaha National’s paying teller E. It. Oglebay, who
watches the procedure here.

HE] Omaha National Bank of
Omaha, Nebraska, has inaugurated
a new service. It has developed
a special check for the use of blind
people, and the first such checking ac
count was opened last month by a
young blind man named LaVon P.
Peterson.
Several months ago, Eugene R.
Oglebay, paying teller at The Omaha
National Bank, read an article about
the Radio Engineering Institute, op
erated by the same Mr. Peterson. He
visited the school and was so intrigued
with what he learned about the activi-

nature are raised, as well as the dollar
sign. There are two raised oblongs
on the right for thumb prints. The
blind person puts his right thumb
print in the upper oblong at the time
he gets his checks. When he is ready
to negotiate a check, he places his
thumb print in the lower oblong and
affixes his signature, or a facsimile
signature, over the signature line.
At the extreme right of the check are
four raised numbers, $5, $10, $25,
$100. The blind person indicates the
limit on the check he is writing either
by placing his thumb print over the
proper number, or by making a circle
around it.
This check is designed for a blind
person who cannot sign his own name.
If such a blind person can operate a
typewriter, he can make out the entire
(Turn to page 57, please)

ties of the blind that he decided to at
tempt to devise a check which the
blind could use.
Consultations followed with A. J.
Rhodes, assistant vice president of
The Omaha National Bank; with Mr.
Lawrence Cooke of the J. P. Cooke
Company, makers of rubber stamps;
with members of the FBI; with Mr.
Irving Benolken, of the Klopp Print
ing Company, and finally a plan was
evolved.

Thumb Prints
The lines for the date, number,
amount, and payee’s name and sig-

THE FIRST CHECK made out by L. P. Peterson in the photograph at the top o f the page is shown below. He tilled the
check out himself at the Omaha National Bank according to the procedure outlined in the above story. The raised portions of
the check, similar to the Braille system for blind reading, stand out in this picture.

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N o r t h w e s t e r n B a n k e r , S e p t e m b e r , 1948

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

,
% a r -r

Serving both Industry
and Agriculture

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

Located in the heart o f the Union Stock Yards
and Chicago’s great Central Manufacturing
District, we have served farmer and manufac
turer as well as hundreds o f correspondent
banks for over three-quarters of a century. This long and
varied experience is at your disposal. If you are seeking a
Chicago connection, we cordially invite you

to write us.

£TAe

LIVE STO CK
BAN K

lA ii/ ic m

c€ /if c a ^ o

a /

E ST A B L ISH E D

U NION

1868

STOCK YARDS

M em ber F ederal Deposit Insurance Corporation

N orthw estern

Banker, S e p t e m b e r ,

1948

LEGAL

A re
§0amatje.s
R ecover for L
Ê*rofits Taxable on Federal in com e ?
Q.

Derbes, a banker, operated an
electrical equipment concern as an
individual. Due to various wrongful
activities by Smith, certain profits
were lost by Derbes in that business.
Derbes sued Smith in court for dam
ages on account of the loss of those
profits and recovered from him. When
Derbes went to pay his federal income
tax the problem arose of whether the
amount of the recovery was taxable
as income. Was it?

Yes. It is well settled that the re
covery of damages for the loss of
profits results in income for federal
income tax purposes. While the In
ternal Revenue Code specifically ex
cludes from gross income the amount
of any damages received on account
of personal injuries or sickness, this
exception does not apply to damage
recoveries for lost business profits.
Actually, in these cases, the main
problem is often whether the recov
ery is based upon a loss of income or
represents damages for lost capital.
If the latter is involved, the money
received is a return of capital which
may not be taxable. Damages paid
because of injury to the good will of
a business are generally treated as a
return of capital.
Q
North Dakota, generally speak
ing and subject to various limitations,
exempts from taxation farm struc
tures and improvements located on
agricultural lands. Bogart bought a
large lot, which had been duly platted
and dedicated, in a city in that state,
used it for farm purposes, and erected
a house and barn thereon. He sought
to take advantage of the tax exemp
tion, asserting that by reason of his
use of the two structures for farming
purposes they should not be taxed.
Was he entitled to the exemption?

No, according to a recent North Da
kota Supreme Court decision. In so
holding the court pointed out that
there are two tests to use in deter
mining whether the exemption ap
plies: the character of the land and
the nature of the structure. As re
gards the character of the land, the
court held that, since the buildings in
N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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

1943

This and Other Timely Legal
Questions Are Answered
by the

LEGAL DEPARTMENT
question were located in a city, they
were on urban, rather than agricul
tural, land and, therefore, were not
exempt from taxation.

Collins conveyed by warranty
deed a timber tract of land to Mapes.
The title was attacked by a stranger
to the transaction and Mapes hired a
lawyer to protect his interest. He did
not notify Collins that the title had
been called into question or request
him to defend the litigation under his
covenant of warranty. Mapes was
successful in having his title upheld.
Thereafter he sought to recover from
Collins the attorney’s fees paid by
him in the litigation. Could he do so?

able compensation for services per
formed, that is, a fair amount for the
time spent by him in showing the
place. The general rule on matters of
this kind is that a broker is entitled
to recover, in the case of a revocation
without cause of his agency, such ex
penses incurred and such reasonable
compensation for services performed
as were within the contemplation of
the contract when it was entered into.

. As an incident to various flood
control projects in different parts of
the country the federal government
has taken, by condemnation, some
very extensive tracts of land which
have been inundated by reason of the
construction of dams and reservoirs.
This has substantially affected tax rev
enues of various states, counties and
other related governing bodies in
which bankers have been interested.
Would the fact that such revenues
would be adversely affected bar such
condemnation proceedings?

No. To entitle a purchaser to re
cover attorney’s fees which he has
paid in defending title to land bought
by him under a warranty deed from
his grantor it is necessary that he
give such grantor notice that the title
has been questioned and that he first
ask his warrantor to defend the title.
If he does not do this, he is not en
titled to recover from such grantor
the attorney’s fees paid out by him.

No. A possible adverse effect on the
tax revenues of a state, county or
other related governing body by rea
son of the exercise by the federal gov
ernment of its power of eminent do
main is no barrier to ,the exercise of
that power. Whenever the constitu
tional powers of the federal govern
ment and those of the state come into
conflict, the latter must yield.

Newton, a South Dakota banker,
parked his automobile in a public
parking lot near his bank. He paid
$4 per month for the space. During
week days there were attendants at
the lot, but on Sundays there were not.
One Sunday Newton left his car on
the lot with the keys in it while be
went to the bank to do some wo*k.
When he returned the car was gone.
Someone had stolen it. It was recov
ered two days later in a damaged con
dition. Newton sought to recover
from the parking lot owner for the
damages. Could he do so?

Wagner, an Iowa banker, owned
a farm in that state that he wished
to sell. He entered into an agreement
with a licensed real estate broker, giv
ing him an exclusive listing on a com
mission basis for a six months period.
The broker advertised the place and
brought several people to see it. Be
fore the six months expired and before
a purchaser was obtained, Wagner
decided not to sell and revoked the
contract. The broker sued him, claim
ing he was entitled to recover an
amount equal to the commission that
might have been earned. Should he
be sustained in such claim?

No. The broker could recover, how
ever, for his advertising and other
similar expenditures, plus a reason

No. The South Dakota Supreme
Court has so decided in a recent deci
sion involving similar facts, stating
that in the circumstances it would be
(Turn to page 57, please)

Y o u r

B a n k

D i f f e r e n t ?

How can you make the public
think and say the right things
about your bank?
DANIEL R. WESSLING,

D. R. WESSLING

JR.

TEAMW ORK — COORDINATION — RESULTS

T o n feel it

Back in 1922, over a quarter of a century ago,

when you first step inside— in the atmosphere

Wessiing Services pioneered in Bank Public R e

that prevails— in the glance you get from the

lations.

man behind the desk or the person behind the

and personal contact, have made Wessiing Serv

counter.

ices a leader in its field.

There is a difference in banks.

In some banks the customers act as if it were
no pleasure for them to be there.

The basic principles, personal touch

At every stage in the building of a Wessiing

Officials are

Publicity

courteous and mean to be friendly, but—

Program— we

incorporate

the right

kind of suggestions— suggestions which will lead
people to think and say what you want them to

Then step into another institution.
ferent!

How d if

think and say about your bank.

Those in charge radiate good will— and

the customers are glad to he there.
Y o u will find that programs by Wessiing Serv
W h y the difference?

ices are effective and are easy to carry out.

Good Public Relations.

us assist yon in selecting your next program.

That's the reason.

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

Let

W e ssling Services
Counsel

DES

Bank

Public

MOINES

Relations

IOWA

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

Elected Auditor
Directors of California Trust Com
pany, Los Angeles, have elected F. J.
Boulton auditor, Frank H. Schmidt,
executive vice president, announced.
Formerly a tax consultant with the
Irving Trust Company, New York,
where he was employed twenty years,
Mr. Boulton joined the California
Trust Company staff in April, 1946.
During the war he served two years
in the European theater in the AAF
finance department.

ß o flA ld t

turned to the Northwestern National
Bank, entering the credit department
in January, 1946. Later that same
year he was transferred to the bond

North Dakota Representative

diswhjy d i. édysUià
When you
»re in ihe market tn

Joseph F. Ringland, Northwestern
National Bank president, Minneapolis,
has announced the appointment of
Laurence M. Broom to the bank’s
correspondent bank department.
Transferring from the bond depart
ment of the Northwestern National
Bank where he served over two years,
Mr. Broom’s experience in banking
dates back to 1926. It was then that
he entered the Northwestern National
Bank as a messenger. In 1927 he was
transferred to the grain draft depart
ment, followed in 1930 by his promo
tion to the transit division, remaining
there until 1943. After two years of
service in the United States Army,
much of which was spent in the Pacific
theater of operations, Mr. Broom re

L A U R E N C E M. BROOM
To Bank in 1926

department, remaining there until his
present appointment to the depart
ment of banks and bankers.
Mr. Broom is a native of Motley,

SsdL
BANK STOCKS
Either control or minority
interest carrying an
active Executive Position
Twenty-four years of efficient,
confidential, personal service in
selling banks. Ask the country
bank department of any reserve
city bank.

BANKS FOR SALE
W e have banks for sale rang
ing in size from one million to
twenty million dollars and re
quiring investments of $50,000
to $500,000 for control.

PROFITABLE
BANK LOANS
Secured by Warehouse Receipts
Many of your customers have inventories
which could provide the basis for sound, profit
able loans, when secured by warehouse re
ceipts of the St. Paul Terminal Warehouse
Company.
CUSTOMER CONVENIENCE? The inventories
remain stored on your customers' premises.
Your investigation is invited!

ST. PAUL T E R M I N A L
WAREHOUSE COMPANY
St. Paul, Minnesota

Bankers Service Co.
HENRY H. BYERS. President

Box 1435
Tel. 2-7800
Des Moines 5, Iowa
(Offices in the Register & Tribune Bldg.)

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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

1948

DES M O I N E S O F F I C E
515 lowa-Des Moines
National Bank Building
T. C. CANNON
District Manager

OTHER OFFICES
M INNEAPOLIS
M ILW AUKEE
CH ICAGO
DETROIT
NEW YORK
BOSTON
BUFFALO
IN DIAN APO LIS
PH ILAD ELPH IA
PITTSBURGH SYRACUSE DALLAS MEMPHIS
ATLAN TA
ALBANY, GA.
CH ARLO TTE
JA CKSO N V ILLE
SHREVEPORT

O M A H A OFFICE
1105 First National
Bank Building
ELMER J. OTTESON
District Manager

Collier's and the Reader's Digest now tell your
customers about AMERICAN EXPRESS services
E*ra M. Cox
■ Future
-C2G2g*n*on

d e fe r ì

V IV ID FEATURE

a r t ic l e

in th e J u ly 1 7th issu e

o f Collier's a n d a c o n d e n s a t io n o f it a p p e a r in g in
th e S e p t e m b e r Readers Digest h a v e n o w b r o u g h t
th e s to r y o f th e P L U S

S E R V I C E S o f A m e r ic a n

E x p r e s s T r a v e le r s C h e q u e s

over

14 m i l l i o n

re a d e r s o f C o l l i e r ’ s a n d o v e r 50 m i l l i o n re a d e r s o f
th e R e a d e r ’ s D i g e s t t h r o u g h o u t th e w o r l d .
"W h e n y o u re a d th is in fo r m a t i v e a r t ic le y o u see
w h y th e c u s t o m e r s t o w h o m y o u s e ll A m e r ic a n
E x p r e s s T r a v e le r s C h e q u e s c o m e b a c k t o d o m o r e
b u s in e s s w i t h y o u b e c a u s e y o u s o ld th e m T r a v e l
e rs C h e q u e s th a t th e y c o u l d s p e n d a n y w h e r e in
th e w o r l d .
T h e s e a r tic le s te ll h o w n o w

154 A m e r ic a n

E x p r e s s o ffic e s a n d th o u s a n d s o f tr a v e l b u r e a u s
a n d r e p r e s e n ta t iv e s a ll o v e r th e w o r l d r e n d e r e x tr a

Sell Your Customers

s e r v ic e s t o th e h o ld e r s o f A m e r i c a n E x p r e s s T r a v

A merican E xpr ess

e le rs C h e q u e s . . . H o w th e y s e r v e y o u r c u s t o m e r s
w i t h m a n y tr a v e l a id s s u c h as h a n d l i n g m a il, a r

T r a v e le r s C h e q u e s

r a n g i n g h o t e l r e s e r v a t io n s , p r o v i d i n g in t e r p r e t e r

most widely known-m ost readily accepted

s e r v ic e s , t a k in g ca r e o f b a g g a g e , a s s is tin g w it h
c u s t o m s c le a r a n c e , a n d , y e s, e v e n w it n e s s in g w e d
d in g

c e r e m o n ie s

p a r ts o f th e w o r l d .

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

f o r a n x io u s

p a r e n ts

o th e r

£ Apkk S*

N o r t h w e s t e r n Banker, S e p t e m b e r ,

1948

34
Minnesota. He attended Hamline Uni
versity and is a graduate of the Ameri
can Institute of Banking. "His new
duties, representative to North Dakota,
will begin immediately,” said Mr. Ringland.

To Attend A.B.A.
Carl A. Birdsall, president, Conti
nental Illinois National Bank and
Trust Company of Chicago, will head
his bank’s delegation to the American
Bankers Association convention at
Detroit. September 26th, 27th and 28th.
Among those who will be in Conti

nental Illinois head-quarters at the
Hotel Statler are:
James R. Leavell, director; Walter
B. Allen, vice president; Francis M.
Knight, vice president; Fred M. Naber,
vice president; John W. Nichols, vice
president; Norman B. Shaffer, vice
president; O. B. Wallace, vice presi
dent; Arthur J. Frey, second vice
president; Wilhelm R. Mesenbrink,
second vice president; Wilfred E.
Resseguie, second vice president;
James P. Johnson, assistant cashier:
George F. Kernan, assistant cashier:
I eland C. Parkin, representative.

Announces Promotion
Eugene S. Northrop has been pro
moted from assistant vice president to
vice president, Harvey D. Gibson, pres
ident of the Manufacturers Trust Com
pany, New York, announced. Mr.
Northrop is located at the bank's main
office at 55 Broad Street.
Mr. Northrop was born in Kansas
City, Missouri, in 1905, and graduated
from the University of Pennsylvania
in 1927. He became associated with
the Manufacturers Trust Company in
1931. During World War II he served
in the United States Navy on several
aircraft carriers, leaving the service
with the rank of commander.
Mr. Northrop is a graduate of the
Graduate School of Banking at Rut
gers, as well as a member of the
Robert Morris Associates.

Federal Reserve Officer

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Cot*e*V0<l
vou

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ou ^et
Abe

thOW

the
.

the

Clarence Mb Groth has been ap
pointed assistant vice president of the
Federal Reserve Bank of Minneapolis,
assigned to the Helena Branch, Helena,
Montana, according to J. N. Peyton,
president of the bank.
Clinton J. Larson, assistant cashier
assigned to the Helena Branch, has
resigned his position to become vice
president of the Conrad National Bank,
Kalispell, Montana, according to a
simultaneous announcement made by
J. G. Edmiston, president of the Kal
ispell bank.

teUtWiosW*

^ceive
tec

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Ah*tS

why
factV^eS*

0{ out

Beg Pardon!

~ , ots to t“ * 6 iU'1 05 tine, io (i'alierS
^

A\ey

StT

In th e August N o r t h w e st e r n B an k er
reference was made to “W. G. Six-

nCed.

HUNTINGDON
Bank Book Company
etfts
ioO o°r, aU « e
fast
ttioUo
invest eot P°
Ü««
Cted'tt
-* * *

iPd

. « 0ods

Govet^ent

iequC8l

U>a« p
4

Huntingdon, Pa.
Specialists fo r F o rty Years
in th e m an u fa ctu re o f

Pass B o o k s fo r B anks
and Savings & Loan
A ssocia tion s

- " "

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wv A \ ss\ ss^ p y

y
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N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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

1948

t o b 's

A Pass Book is one piece of
advertising matter a depositor
never discards. As it constitutes
a permanent record, it should be
well-made and durable; as it is
an intimate possession, it should
be neat and attractive.
Our high standard of quality
insures your s a t i s f a c t i o n at
prices which are most reason
able.

35
smith,” advertising department, the
California Bank in Los Angeles. The
initials were correct, and the “ Smith”
part remains, but it should have been
“Goldsmith.” Our apologies to “Bill,”
who originally hailed from Minnesota,
but is doing a fine job with the Cali
fornia Bank and likes the west coast.

Etank Equipment ideas
For a number of months the N o rth
B an k er has been publishing a
survey on “ How Machines Save Time
and Money for Banks.” These arti
cles have demonstrated how modern
equipment has speeded up clerical
operations and reduced overhead.
This information has proven exceed
ingly helpful to the readers of the
w e st e r n

N o r t h w e st e r n B a n k e r .

Another valuable part of bank serv
ice is the pass book, because it not only
keeps a record of deposits made by a
bank’s customers, but it also can be
used as a piece of advertising material
which the depositor never discards.
Pass books should be made of durable
material as well as being neat and at
tractive.
It is, therefore, important that every
banker give careful thought when the
question of purchasing pass books
comes up for consideration.

New Treasurer
J. C. Thomson, president of North
west Bancorporation, has announced
the retirement on September 1st of
Herbert Hallenberg, vice president and
treasurer of the corporation. Mr. Hal
lenberg had been chief examiner of
the Bancorporation from August, 1929,
until January, 1947.
To succeed Mr. Hallenberg as treas
urer, directors of Northwest Bancor
poration elected Von E. Luscher, for
merly vice president, to the position
of vice president and treasurer.

^an£incj fa cilities fo r

WORLD TRADE
Correspondents of Bank of America value its Inter
national Banking Department, for through its extensive
facilities they are able to bring their own customers every
service in the field of foreign trade and banking.
Bank of America not only lias branches in the port cities
of California and throughout the state, but has foreign
branches in Manila, Tokyo and London. These are sup
plemented by strategically located representatives and
correspondents throughout the world, and the direct serv
ices of this entire network are available to correspondents
through a single account in either of Bank of America’s
main offices.

Director of Finance

For complete details on how7 Bank of America’s Inter

John S. Coleman, president of Bur
roughs Adding Machine Company, an
nounced the appointment of Kenneth
C. Tiffany as director of finance at
Burroughs.
In his new post Mr. Tiffany will be
responsible for the supervision of
budget activities in the company, and
will also serve as an advisor to the
president in accounting and financial
matters. Prior to his appointment at
Burroughs, he was a member of the
staff of Price, Waterhouse & Company.

national Banking Department can serve your bank, write

Will iBe in Detroit
Officers of the Guaranty Trust Com
pany, New York, in addition to Wil
liam L. Kleitz, president, who will at
tend the American Bankers Associa
tion Convention in Detroit are:

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

Bank of America, 300 Montgomery St., San Francisco 20,
or 660 South Spring St., Los Angeles 54.

IBank of A m ttrira
NATIONAL J K sitnaS ! ASSOCIATION

B a n k o f A m e r ic a T r a v e le r s C h e q u e s a r e k n o w n
th e w o r ld o v e r . S e l l th e m to y o u r c u s t o m e r s .

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

Dale E. Sharp and Broderick Has
kell, vice presidents, general banking
department; Harold M. Sherman, Jr.,
second vice president, general banking
department; Kent G. Colwell, second
vice president, foreign department;
John V. Hendricks, assistant treasurer,
U. S. government bond department; C.
G. Schmidt, U. S. government bond
department.
The headquarters of the Guaranty
Trust Company in Detroit will be in
the Book-Cadillac Hotel.

For Out-of-Town Banks
A unique service to assist out-oftown banks in a new business promo
tion has been launched in New York.
This service is no longer in the ex
perimental stage, having been in oper

C a n

You

ation for the past year. It is a New
York new business representative for
banks in other cities which do not
now have members of their own or
ganizations on year ’round, full-time
duty in the New York area.
This new service is being offered by
John P. Anderson, with offices at 420
Lexington Avenue, who received his
basic training in bank new business
work with the Bank of America, N. A.,
of New York City, which was merged
with the National City Bank in 1931.
The Anderson Service is offered to
one bank only in a given area, and
is performed on a retainer basis with
a standardized sliding scale of fees
depending upon the requirements of
each bank.
Mr. Anderson works closely with

The Chicago Railroad Fair, held this
summer, was the centennial celebra-

S e r v ic e s ?

Cost and operating surveys for banks
Government portfolio counsel
Government Security transactions
Municipal and corporation bond counsel
Safekeeping of securities
Coupon collection
Excess loans
Credit information and counsel
City and country collections
Complete Foreign Services
Silver and currency shipments
RNÿ)
T h e s e a re a fe w o f th e m a n y s e r v ic e s w e o ffe r c o r r e s p o n d e n t b a n k s .
W r i t e f o r o u r b o o k l e t “ Y o u r C o r r e s p o n d e n t B a n k ,”
g i v i n g fu rth e r d e ta ils .

Harris Trust a n d Savings Bank
Organized as N . W . Harris & Co. 1882 • Incorporated 1907

115 West Monroe Street, Chicago 90
M ember F ed era l Deposit Insurance Corporation

N o r t h w e s t e r n Banke r, S e p t e m b e r , 1948

Railroad Fair

U se

T h ese

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

the out-of-town bank’s New York cor
respondents. His activities in no way
compete with or duplicate their ef
forts. Rather, what he does supple
ments their services. His work par
allels the functions of the special rep
resentatives offices which some of the
larger banks in the United States have
in New York City. He functions for
banks which are not large enough to
have exclusive special representatives,
but for whom, nevertheless, much po
tential new business originates in the
New York area.

Ticket and Information Booth

tion of the “ Railroads’ Contribution to
American Progress” during the past
100 years. The fair took hold of the
public’s interest in “world fair” propor
tions, the attendance averaging 48,000
per day. Chicago industrial concerns,
banks, and business houses generally
contributed advertising a n d other
forms of publicity. The picture shows
the ticket and information booth main
tained in the savings department of
the Continental Illinois National Bank
and Trust Company of Chicago. On
display are models of two of the ear
liest railroad engines, the Pioneer and
the Tom Thumb, contrasted with a
model of a modern streamliner.

Vice President
William Heuer, Jr., has been elected
vice president of California Bank, Los
Angeles, Frank L. King, president, an
nounced. Mr. Heuer was formerly
executive vice president of the First
Bank and Trust Company, South
Bend, Indiana.

IN V E S T M E N T «

Minili

Hu m in i/s Hvu v!U

From i nerou sed in terest H utes
Doubtful If Higher Reserve Requirements
Will Be Put Into Effect
h

RAYMOND TRIGGER
Investm ent
New

E \ELATEDLY, in the opinion of
v many, and certainly grudgingly,
' the Treasury has upped the oneyear rate to 1% per cent, a develop
ment that will hardly surprise readers
of this column. It is a victory for the
Reserve and Mr. Eccles; a defeat for
the Treasury and Mr. Snyder.
The immediate repercussions like
wise might easily have been forecast.
Commercial paper rates have adjusted
themselves. The Reserve’s re-discount
rate has been raised. Outstanding
loans with the escalator clause now
carry a higher rate. Banks’ earnings,
at least for the moment, have bene
fited. There remains, of course, the
threat of higher reserve requirements.
On this point, though, there is plain
indication that the authorities would
prefer to hold it as a threat, rather
than to invoke it.
That is because higher reserves will
be found most readily by dumping
governments into the receptive lap of
the Reserve Banks. The best place for
the government’s debt is in the hands
of private savers, or in the hands of
life insurance companies which act
for them, and in the vaults of savings
banks, again functioning as agents for
private individuals. If the bonds of
the government pay so little as not to
attract private savers, the next best
place is in the portfolios of commer
cial banks; the least desirable spot for
governments is in the Reserve Banks.
Unfortunately, the notion that govern
ments should not sell below par means
that the Reserve must buy without
limit. The long-term 2 V2 per cent
rate is still sacred in Washington.
If higher reserves are ordered, the
banks owning too many governments
to begin with, can hardly be blamed
for turning them back to the Reserve
in order to comply with instructions
from on high. In passing, it’s clear
that as long as governments can be
sold to the Reserve, the banks already
have the equivalent in cash, in addi
tion to actual cash, in a more than gen
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

This is a discussion of factors
affecting your investment port
folio. If you have any questions,
or if you find yourself in dis
agreement with comments here
in, your letters, addressed to the
NORTHWESTERN BANKER, will
be welcome and will be answered
here if the subject matter is of
general interest. Under no cir
cumstances will the editor of this
column discuss specific securities.

erous amount. From the standpoint
of earnings, though, the banks will
suffer if forced to turn bonds paying
2 V2 per cent into non-productive “re
serves.”

Reserve Increase Not Imminent
Thus, the prospect is that commer
cial banks, if higher reserves are or
dered, will sell governments to the
only important buyer. Worse, they
will sell more governments than
needed to satisfy reserve requirements
in order that they may have cash to
lend to restore earning power. That
is monetizing the debt at an acceleating pace. Presumably, the authori
ties are not too anxious for that to
happen. And, of course, higher re
serve requirements take not a single
dollar out of circulation; indeed, the
result might easily be the reverse.
The way to combat inflation is to have
fewer, not more, dollars seeking to
buy such goods (the more goods the
better, of course) as have been sent
to the marketplace.
Altogether, then, it looks as though
the authorities would go easy on hik
ing reserve requirements.

Higher Rates Good
The higher interest rates already
on us, though, are all to the good. They
spell better earnings for banks; a
choosier attitude on the part of lend
ing officers; a more thoughtful ap

York

Analyst
City

proach by borrowers since the cost will
be higher. There might even be a fall
in total credits allowed. Likewise, re
turns from investments other than
governments should rise a little and,
perhaps, enough to entice some pri
vate individuals' to save what other
wise they would have spent.
There is, however, a cloud, a good
deal bigger than a man’s hand on the
horizon. The fetish of a 2% per cent
rate on long governments is less de
fensible every time that short-term
rates advance. If it is right to raise
one-year rates, why should not longer
term rates be proportionately adjust
ed? For the moment, and doubtless
till early-November, the question is
academic.
But the warning is clear. The posi
tion of intermediate and long govern
ments has been further undermined
in recent weeks. The inevitable can
not be defied indefinitely. The short
term rate has been raised. The Re
serve for weeks has been ignoring the
maturities through 1953. Last year,
as a pre-Christmas Day treat, the old
pegs were abruptly pulled. The pres
sure increases and the precedent ex
ists. Still, there remains time to make
ready. November is some way off.

Some Guessing Necessary
That suggests that the shrewd and
prudent management of investment
funds will try to peer through the fog
and to guess what a Republican ad
ministration will aim at. A Republi
can administration, it appears, must
be taken for granted, beginning next
year. All the respected political wise
acres grant the Presidency and the
House; most rather expect a Repub
lican Senate as well. The southern
Democrats in revolt seem to be aiming
at recovering their party, however
shattered, and restoring it for a real
contest in 1952. The followers of Wal
lace, likewise, seem to be more con
cerned with 1852 than 1948. A mir
acle might do something for the Tru
man Democrats. Short of money and
N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

Investm ents

miracles, this faction seems to be
concentrating on certain seats in the
Senate. But the only well-heeled and
determined party concentrating on
winning in 1948 seems to be that of the
Republicans.
If, for argument’s sake, it is granted
that the Republicans will win in No
vember, what may be expected of
them? They’ll go in with some ex
tremely competent and proven admin
istrators at the top level and the signs
point to the injection of some fine
brains into the Treasury. Granted
that they will be politically minded,
they will start laying plans for 1952.
Above all, they will want to avoid any

serious mishaps in late 1951 and dur
ing 1952.
If the premise is granted that in
flation has gone too far in this coun
try; that prices are too high; and,
among other maladjustments, the na
tional debt of $253,267,236,266 is not
only too large, but definitely un
wieldy; what might be the grand
strategy?

is a Recession the Answer?
The answer suggests itself. A re
cession, short of a “bust,” of course, is
inevitable. The sooner the better,
then. Once over and done, a healthy
recovery should set in and carry the

IN V E S T M E N T C O U N SE L
Individuals, Institutions, Trust Accounts and Estates

R IC H A R D R . R O LLIN S , INC.
Representing

S H E R ID A N - F A R W E L L & M O R R ISO N , I n c .
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E IG H T - S O U T H M I C H I G A N A V E N U E
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REPRESENTATIVE

The marketability of municipal bonds— the readiness and
promptness with which they can be so ld — has broadened

O FFERINGS:

in recent years. This is due to their increased attractive
S ta te of A rk a n sa s
H ig h w a y Refunding Bonds

ness to investors who find their fe d e ral tax exemption
valuable, to an increase in the amount o f municipals

C o m m o n w e a lt h o f M a s s a c h u s e t t s
1 .7 0 % V a rio u s Purposes Bonds

issued, and to a growth in the number of investment

H o u sto n In d . S c h o o l D is t ., T e x .

houses and banks actively trading in them. All of these

3 % .2 % % & 2 H % B ° n d s

factors are expected to further broaden and enlarge the
marketability of municipals.

S t a t e o f Illin o is
& 2 % S e rv ic e Recognition Bonds

% >

Halsey, Stuart & Co. Inc. endeavors to maintain markets

I n d i a n a p o li s , In d ia n a
M un icipal A irp o rt Bonds

for the municipal bonds it underwrites, and through its
trading departments keeps active contact with markets

N e w Y o r k C it y , N e w Y o r k
3 % W a t e r S u p p ly Bonds

for virtually all bonds outstanding. Holders of municipal
bonds are invited to use this service. Send without ob liga

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H A L S E Y , S T U A R T <&, C O .
123

SOUTH

LA SALLE STREET, C H I C A G O

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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Federal Reserve Bank of St. Louis

incumbents on to fresh victories in
1952. Surely the strategists high in
the Republican party have not forgot
ten the history of the early ’20s.
The Republicans turned out the
Democrats in 1920 and, in 1921, there
was a short, but severe adjustment.
It was, perhaps, more nearly “drastic”
or “violent” than “severe,” but it was,
mercifully, brief. The record shows
that the electorate had forgotten it
by 1924—a Republican year—and the
boom which followed the 1921 episode
had by no means subsided in 1928—
another Republican year. The 1929
debacle was resisted energetically; it
persisted till it had lasted till mid1932. In the Fall of that year, the Re
publicans were dismissed.
With such a record to contemplate,
how can the Republicans fail to con
clude that, however distasteful the
medicine may be, the sooner it is taken
—in sufficient large quantity—the
sooner the recovery sets in?
The records of post World War I
will also disclose that government
bonds sold far below par—some into
the middle 80s—and that the Victory
issue was for five years at the rate of
4% per cent, if memory serves. Con
sider the contrast with a 2 V2 per cent
rate on the longest governments to
day and the inflation unchecked and
the inevitable aftermath not yet upon
us! Say nothing of a total govern
ment debt which costs $5,200,000,000
a year merely to service, say nothing
of reducing; and is still not lodged
nearly enough with bona-fide long
term investors.
It may be profitable to consider just
what a government bond promises. It
is no more than an undertaking to pay
stated interest at specified dates and,
upon maturity, the principal. The
government bond has not been en
graved which carries on it any under
taking, expressed or implied, to be
always marketable at, or above, par.
The amiable Reserve has virtually
emasculated itself of its power to con
trol money rates by playing along with
a Treasury Department which fancied
low coupons and high quotations on
its bonds. But the Reserve has lately
been rather less co-operative. The
members of its Board hold office for
good, long, comfortable terms. Treas
ury top men are appointed. The Re
serve may sense a change in the
offing.—The End.

• 3 5 WALL

1948

S TRE ET. N E W Y O R K

S . AND

In c .
OTHER

PRINCIPAL

CITIES

Committee Chairman
Kenneth R. Wells, vice president of
the American National Bank and
Trust Company of Chicago, has been
appointed chairman of the committee
on legislation, installment lending di
vision, Illinois Bankers Association.

Investments

1,000 Members

W h a t Man h ers Th i ah
at K a i si a u
K ed is
(Continued from page 21)
ministration in trying to protect the
carrying charges on the national debt,
at low levels, while raising the Fed
eral Reserve rediscount rate, is rather
contradictory.
“The demand for money in our
trade area is still subnormal and our
loans about a third of our total in
vestments. We are raising rates and
meeting little, if any, resistance; how
ever, it is our opinion that rates
must advance substantially above the
present rate to really be effective.”

moderately increasing their interest
rates and more carefully screening
loans. All of these instruments work
ing in concert—a more flexible inter
est pattern for government securities;
the change in the rediscount rate and
a general increase in the entire pat
tern of interest rules—should have a
marked effect in curbing inflationary
credit.”

M R . SUM NER M. M ACO M BER
has become associated with us

P re sid e n t, A m e ric a n N a tio n a l Bank &
T r u s t C o m p a n y o f C h ic a g o

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INVESTMENT

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D. M . 363

T e le p h o n e
4-7297

WHEELOCK &CUMMINS
In c o rp o ra te d

Members Chicago Stock Exchange
Underwriters and Distributors of Investment Securities
200 Equitable Building
Phone 4-7158
Teletype DM 184

135 South LaSalle Street
Phone Andover 6700
Teletype CG 245

DES MOINES, IO W A

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IN V ESTM EN T
SEC U R ITIES

P re sid e n t, N o rth w e ste rn N a tio n a l Bank
o f M in n e a p o lis, Minn.

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Federal Reserve Bank of St. Louis

BANKERS

Equitable Building

JO SEPH F. RINGLAND

“The recent increase in the Federal
Reserve rediscount rate from 114 per
cent to IV2 per cent has been largely
psychological. Since the war, banks
have been only occasional borrowers
and, of course, they have substantial
holdings of short government securi
ties with which to replenish reserves.
However, we should not overlook the
importance of the rediscount rate as
an influence on other interest rates.
“During the past year, we have wit
nessed a gradual return to a more
flexible interest pattern for short term
governments and corresponding ad
justments in the rediscount rate. Si
multaneously, the commercial banks,
cooperating through the A.B.A., have
taken steps to help stem inflation by

The Quarter Century Club of Guar
anty Trust Company of New York last
month marked the admission of its
1,000th member with a luncheon at
the bank at which Creighton D. Lummis of the comptroller’s department
received the club’s official emblem and
membership certificate No. 1,000. Of
ficials of the club, President William
L. Kleitz of the bank, and associates
of Mr. Lummis’ department were
present.

We are pleased to announce that

LAW RENCE F. STERN

“The increase in the Federal Re
serve rediscount rate from 1% to IV2
per cent, coupled with one-eighth of
1 per cent increase in the one-year
certificate rate, in my opinion, will
not in themselves have a very mate
rial effect on either the general busi
ness situation or the slowing down
of inflation. This change in interest
rates, however, supplementing the
other slight upward changes which
we have seen over the past year and
a half, seems to be fundamental. In
other words, it gives evidences of be
ing another step in a complete re
versal of the general interest picture
which we saw in the period 1933 to
1946. Such a change could very well
he the forerunner of a down trend
in business and serve as a brake on
the inflation spiral. This is especially
true when one recognizes that there
are other deflationary forces in the
offing.

Public Utility
Industrial
Railroad
Municipal
A .C . A L L Y N and C O M

PA N Y

Incorporated
100 W e s t
\ew

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

M on roe

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K an sa s

C ity

M in n ea p o lis
M o lin e

N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

Investm ents

N ew

Vice President

S. H. Witmer, president of Policy
holders National Life Insurance Com
pany, Sioux Falls, South Dakota, an
nounces the appointment of W. E.
Moore as agency vice president.

Mr. Moore has been for many years
a personal friend of the company’s
officials, who are all familiar with
his past record of accomplishment. In
his new capacity as agency vice presi
dent he will have complete charge of

agency activities and be responsible
for promotion and development of new
business, including recruiting, training
and augmenting the present agency
force.
With a background of five years’

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secured by

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SEASONAL CROPS . . . MANUFACTURE IN ADVANCE OF SELLING SEASON
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Field Warehouse Receipts issued by WILLIAM H. BANKS WAREHOUSES. INC.,
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Protective Insurance maintained in effect at all times
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W ILLIAM H .BAN K S W AR EH O U SES
( I N

109

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J ic U

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With

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n
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experience in the fire and casualty
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of the Pacific Mutual as an agent of
that company in Sioux Falls, South
Dakota, on January 1, 1930. Two years
later he was made general agent in
Sioux City and later transferred as
general agent for the state of Kansas
with headquarters at Wichita.
Mr. Moore assumed his new duties
during the Policyholder’s Agency Con
vention at Estes Park.

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and

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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

1948

S T. P A U L

IN S U R A N C E

H o ir
M o re

t h

i l

i f 0 »n

s i n

s s

There Is a Need for Corporate Surety Protection
For Private Construction Contracts
By

CHARLES G. ROTH

Surety

Claim s

Division

N ational S u re ty C orporation
N e w York City

N THU early history of this country
contracting was in a chaotic state.
Suppliers of labor and materials
were never certain of payment. Sup
pliers were forced to load their prices
(o make sure that the profitable ven
tures would offset their losing ven
tures.
In 1791 the state of Maryland passed
a law to help land owners improve
their property. In order to induce the
suppliers to cooperate, this law gave
them protection. The first mechanics’
lien statute had been conceived and
enacted. Its popularity caused its
spread, so that in the next 50 to 100
years all of the states adopted laws
designed to protect the suppliers of
contractors.
Whenever contracts are attractive to
suppliers we find that prices are lower,
performance is better and defaults are
fewer. Public opinion is a powerful
factor. It has already forced the adop
tion of laws by five states which re
quire owners to take bonds for the
protection of suppliers, if the owners
want relief from the burdensome me
chanics’ lien law provisions. It seems
safe to predict that some day, not too
far in the future, the construction in
dustry will be stabilized through the
adoption of laws requiring bonds for
the protection of suppliers on all con
tracts, private as well as public works.
The adoption of the Bonded Com
petitive System for private contracts
is evidence that public opinion has de
termined that private construction

contracts are entitled to the benetits of
the procedures which the public •au-

Knowlege Is Necessary

CHA RLE S G. R O TH
“ Thar’s Gold in Them Hills”

thorities had worked out and devel
oped in the public works contract field.
It is common knowledge that con
centration on war contracts, plus ordi
nary current needs and developments,
has piled up a tremendous backlog of
non-military construction.
Private construction contracts pre
sent a market potentially capable of
producing in excess of 50 million dol
lars of premium each year which could
yield you millions of dollars of addi
tional commissions. Normal produc

Did you know there’s a gap in your Cash Letter
protection that you could “ drive a truck through?”
Ask us how to bridge it without costing you a
cent.
F IR S T

N A T IO N A L

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Federal Reserve Bank of St. Louis

BANK

B U IL D IN G

tion protects approximately 10 per
cent of the total of private construc
tion contracts. The unbonded 90 per
cent presents its challenge to the
American Agency System and the
surety industry.

C H IC A G O

Any agent who wishes to build up
a volume of contract bond business
must learn how to produce desired
results. A contract bond is not to be
had merely for the asking. Contract
bonds are so hazardous that they must
be carefully underwritten. Most con
tractors experience difficulty in secur
ing all of the bonds for all of the con
tracts they wish to undertake. The
agent who knows the general under
writing requirements is several jumps
ahead of his competitor.
A knowledge of underwriting re
quirements will permit the agent to
differentiate between good, bad and
borderline risks. He will know what
facts are necessary to justify approval
of the risk. He will develop and pre
sent those facts fully with the first
presentation. He will avoid disap
proval or need for resubmission which
premature incomplete submission in
vites. He will avoid delays incident to
need for developing additional infor
mation. Such delays present compet
ing agents their best opportunity to
take the business. These delays in
volve not only the risk of loss of the
particular item of business, but also
of the account and of all the insurance

Scarborough & Company
Insurance Counselors
IL L IN O IS

STATE

4325

N o r t h w e s t e r n Ban ke r, S e p t e m b e r ,

1948

Insurance

coverage which usually follows the
contract bond.

How to Get the Business

F i n

i n s

of Progress
W e are proud of our record
in the Insurance field and of
our Banker Representatives.
W e write a complete line of

Fire - Windstorm - Automo
bile & Plate Glass Insurance

WESTERS E T U I ,
FIRE INSURANCE COMPANY
NINTH & GRAND

DES MOINES 8, IOWA

“ Mutual Insurance Is American
Insurance99

Every producer has his own method
for getting business. Each one of you
has one or more strong points which
you turn to your advantage. By com
bining with such strong points the
best of the methods and procedures
which have brought success to the
large producers of construction con
tract bonds you can hope to realize
the dream of every agent. You can
hope to reap the benefits of super
production.
The most successful producers of
construction contract bonds claim that
they achieve their best results by giv
ing good service to their customers
and to those who might become their
customers. To render this service
they find that it pays to make and
maintain the best of contacts and
friendships.
They also advocate the wide ac
quaintance with contractors, material
suppliers, public officials, architects,
engineers, bankers and capitalists.
They join all civic and semi-public or
ganizations.
They seek committee
work on these bodies. They make con
tacts and cement friendships with the
personnel of all the boards and de
partments which have control over

A R E S E R V O IR O F
C H EC K IN G ACCO UN TS
Am ong those millions of people who
maintain savings accounts, but who
do not pay by check, can be found a
vast, untapped checking account
market. Very little effort has been
made to reach this market for seven
years and it appears timely now to go
to work on it.

deposit record, and a nice, goldstamped cover. W e sell it to banks
for 60 cents, including postage
mailed direct to the customer, and
the bank in turn presents it to its
customers at no charge, with the
understanding that subsequent orders
will be purchased.

'W e suggest that you send a letter to
all savings account customers who
do not maintain checking accounts,
stating the advantages o f paying by
check and emphasizing the low serv
ice charge cost. As an inducement
offer them our "Free Fifty” pack
age, which would start them off with
top quality Personalized Checks. Our
"Free Fifty” is a little package con
taining 50 Personalized Checks,
together with a check register, a

Under this plan you not only reduce
your operating costs by switching
savings withdrawals to checking
withdrawals, but you also recover the
full cost o f the checks themselves
after the complimentary supply has
been used. Thus you secure service
charge paying checking account
customers and increase p rop or
tionately the relative number of
"thrift” accounts in your Savings
Department.

the award or supervision of contracts.
These are the state highway, state
engineering and state architects de
partments, the county commissioners,
the county engineers, the city officials,
engineers, architects and inspectors.
They make it a point to attend all
contract lettings because by attending
the lettings they are afforded the op
portunity for renewing friendships,
for making new friends and perform
ing service that bring business. Such
attendance impresses the contractors
with the fact that they are always on
the job. By being present they protect
their own business and place them
selves in the way of getting new busi
ness. They know that the ability to
execute the required bonds on the spot
will sooner or later place them in a
position to take business away from
competitors. They say that time is
very often the most important ele
ment, especially in a situation where
the contracting officer may be impa
tient, where he may desire the im
mediate execution of the contract and
the immediate delivery of the bond.
They know that being on the job
affords them opportunity for business
which would otherwise not be within
their reach.
They become familiar with all types
of contracts and with the classes into
which these contracts are divided for
rating purposes. They are careful to
keep abreast of rates and rate changes
so as to avoid being placed in the em
barrassing position which attends the
inability to quote a rate or the neces
sity for changing a quotation once
given.
They compile complete records cov
ering all of the contractors who oper
ate in their territory, whether or not

MUTUAL APPRECIATION
is the expressed result of
our plan with each of our
many Banker Friends who
qualified for our Annual
Expense - paid Vacation,
held this year at Estes
Park. loin this hard work
ing, hard playing group
next year. For details con
tact

Policyholder’s National Life
Insurance Company
SIOUX FALLS, SO. DAKOTA
N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

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

Insurance

the contractor is a customer. They
make it a point to know the type of
work which each of these contractors
prefers. They compile their informa
tion from all available sources, such as
rating bodies, boards, associations and
banks, as well as by direct information
from the contractor. They know the
personnel of each contractor organi
zation and compile data covering the
hobbies and affiliations of the top offi
cers.
They understand that many other
types of insurance coverage follow the
contract bond. For that reason they
make themselves expert on all types
of collateral coverage. Sound advice,
good suggestion and competent han
dling of insurance business which op
portunity throws their way helps to
bring other business.
They say it is most important to
obtain advance information concern
ing prospective contracts.
Their
sources of such advance information
are their contacts and friendships, the
daily newspapers, trade publication,
public records and advertisements.
Some of them find it helpful to sub
scribe to news services like Dodge
Reports to obtain advance information
of the prospective contractors, likely
bidders, the names of the owners,
architects and other officials who may
have supervision or authority thereon.
Thus they can be first in offering their
service as insurance advisors to the
owners and architects. They check
their records on contractors to de
termine which of the contractors
might be interested in the type of
work being offered. They find that
advance information places them in
better position to discuss construc
tion contract matters. They telephone
the contractors to learn if they intend
to bid on certain types of work. They
find that their phone calls often pave
the way for giving service and getting
business.
There is a huge market potential in
the private construction contract field,
particularly in industrial and utility
construction. It beckons with alluring
promise of rich reward.—The End.

A. M. Joslyn
A. M. Joslyn, 65, director of the First
National Bank in Anoka, Minnesota,
REA and past president of the Anoka
County Farm Bureau, died recently.
He had been in the hospital for five
weeks.
For a number of years he operated
an insurance agency in the First Na
tional Bank Building.

in charge of the bank’s southern Cali
fornia activities in 1939.
In 1945 he was elected chairman of
the board of directors, succeeding A.
P. Giannini, who retired at that time
with the honorary title of founderchairman.

J. Gock, chairman of the bank’s board
of directors, on the 45th anniversary
of his embarkation on a banking ca
reer.
The chairman of the board of the
largest bank in the world started his
career with the City and County Bank
of San Francisco 45 years ago, becom
ing associated with Bank of America,
then Bank of Italy, in 1912. He be
came an officer of the bank in 1914,
vice president and director in 1925,
vice chairman of the board of direc
tors in 1935, and came to Los Angeles

Time Out
“ Oh, pshaw! I left my watch up
stairs.”
“ Never mind. It’ll run down.”
“ No, it won’t. There’s a winding
staircase.”

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D E S

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Fellow Bank of America officers and
associates paid tribute recently to A.

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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Ba nke r, S e p te m b e r, 1948

Insurance

BANKERS NAME THEIR
CHOICE FOR PRESIDENT
(Continued from page 22)
grindstone.
They want everything
lower and can we afford that with the
enorm ous government debt? The
Democrats have had too many laws
and regulations. Ninety per cent of
(he people would he in jail if every
body were arrested for wrongs in the
last 6 years, and of course Wallace is
supposed to be a Communist which we
cannot favor. If Wallace were not a
Commy, I would favor his platform”

What the final political outcome will
be in the November election is yet to
be decided, but most political prognostigators favor Gov. Dewey as the
next president, but they believe he
will have to put on a good strong
campaign, and that it will not be a
“ walk-over.”
No one can tell now what the Rus
sian situation may he at the time the
voters go to the polls, hut the inter
national situation, cost of living, hous
ing and many other questions will
come up in the voters’ minds, as they
cast their ballots, and as one banker
said in replying to the N o r t h w e st e r n
B an k er survey, “16 years under one
gang is too much, no matter which
one.”— The End.

W" S prompt, efficient collection of
W isconsin checks and drafts
important to you?

W in s A w a rd

Do you ever need first-hand

facts about sources of supply in W isconsin? . . .
credit inform ation? . . . market data? . . . who’ s
who ?
W hatever your requirements — routine hank
ing service, special information, or off-the-beatenpath assistance -—- the chances are that the facil
ities, long experiences and statewide contacts of
the first W isconsin National Bank of Milwaukee
can supply the answer.
This bank is the largest in the state . . . 29th in
size among all hanks in Am erica . . . and over
92 per cent of the hundreds of banks throughout
W isconsin are First W isconsin correspondents.

M em b er o f
»
the F e d e ra l D eposit
In su ra n ce C o rp o ra tio n

r first Wisconsin
' NATIONAL BMK .

N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

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

MILWAUKEE

John K. Grogan, left, Minneapolis,
is $400 to the good— having won
that sum for an idea accepted by
the Employees Suggestion System at
First National Bank of Minneapolis.
He is pictured receiving the award
from H. E. Atwood, First National
president. Mr. Grogan was given
the award for his suggestion regard
ing internal operations in the bank’ s
credit department, where he is em
ployed. The prize is the largest paid
since inauguration o f the First Na
tional’ s suggestion system two years
ago. An average o f twenty-live sug
gestions a month are submitted by
the bank’s employees.

nouncement made by officers of the
bank.

A.I.B. Appointments

50 Year Banker
Hilding F. Krook, New Ulm, Minne
sota, last month resigned as cashier
of the Citizens State Bank, after a
half century with the bank. Mr. Krook
had been in the banking business for
58 years. He was succeeded by W. F.
Huevelmann.

Back at Work
Lawrence Paulson, president of the
Farmers State Bank at Rothsay, Min
nesota, who submitted to a serious
operation at Northwestern Hospital in
Minneapolis recently, has returned to
his home at Rothsay and is back at
his desk now.

T. K. Troc
T. K. Troe, vice president and cash
ier of the First National Bank at Em
mons, Minnesota, died last month at
the home of his daughter, Mrs. Vernon
Wrolstad, at Pequot Lakes, Minnesota.
Death was due to a heart attack. He
had been in ill health for several
months. Mr. Troe had been in the
banking business in Emmons for 43
years.
Mrs. Troe was in a hospital at
Rochester at the time of his death.
Surviving are his wife; his daughter,
Mrs. Vernon Wrolstad; four grand
sons; his stepmother; one sister; five
half sisters and one half brother.

Completion of the national organi
zation of the American Institute of
Banking through the appointment of
associate councilmen to assist the
twelve executive councilmen in car
rying on the work of the institute is
announced by Pierre N. Hauser, new
ly elected national president of the
A.I.B. Mr. Hauser is vice president
Mach, Nels Swanson and Carl Thomp
of the First Wisconsin National Bank,
son, directors.
Milwaukee, Wisconsin.
Each executive councilman has sev
eral states in his jurisdiction and as
Modernizing Bank
Modernization activities have been sociate councilmen are appointed to
under way at the Middle River State assist him in the promotion and devel
Bank, Middle River, Minnesota, with opment of institute chapters and study
the installation of glass blocks in the groups. The name of the executive
top part of the window frames. The councilman is shown in capital letters
doorway will also be enclosed in glass above the names of the states and
associate councilmen in his territory.
blocks, and a new door installed.
S.
J. Bredeson, cashier, states that Those who served last year and were
other major improvements are also reappointed are indicated by an as
terisk.
contemplated.
CHRISTIAN RIES:
Iowa—*Clarence A. Reibert, IowaAugust H, Lidberg
Des
Moines National Bank, Des Moines.
August H. Lidberg, 62, vice president
Minnesota — Vincent R. Smythe,
and cashier of the First National Bank
at Red Wing, Minnesota, died last State Bank of Park Rapids, Park Rap
month after an illness of more than ids.
Nebraska — ^Theodore A. Spaustat,
a year. Mr. Lidberg was treasurer of
Live
Stock National Bank, Omaha.
the Red Wing Elks Club for 25 years.
He is survived, by his wife, four daugh ^Clifford G. Weston, First National
ters, three grandsons, two brothers Bank, Lincoln.
North Dakota—*Adrian O. McLeland one sister.
L _v V . *
lan, The Merchants National Bank and
Trust Company, Fargo. *L. M. Stenehjem, First International Bank, Wat
Now Covered by F.D.I.C.
The State Bank of Danube, Minne ford City.
sota, is now covered by Federal De
South Dakota—Russell B. Knudsen,
posit Insurance, according to an an American State Bank, Yankton.

E m p lo ye s ('h orn s W in s

Increase Surplus Account
The board of directors of the Fidel
ity State Bank of Minneapolis, at a
recent meeting, increased the surplus
account of the bank by $50,000, accord
in g to announcement made by C.
Herbert Cornell, president.
This is the second such increase of
the bank in a little more than a year.
The total capital structure of the
bank is now over one-half million
dollars.
The capital is listed at $200,000,
surplus $200,000 and undivided profits
and reserves of over $100,000.
Serving with Mr. Cornell in manage
ment of the bank are the following:
Herbert C. J. Olson, vice president:
O. M. Anderson, Emmett L. Duemke,
Emil Gustafson, George Hunt, Henry
Johnson, Seeman Kaplan, Dr. Frank

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Federal Reserve Bank of St. Louis

SING-ING BA N K ERS More than 50 members of the Northwestern National
Banks in Minneapolis organized the EON Chorus two years ago to give oppor
tunity to all bank employes with musical abilities and interests a chance to express
their talents. Numerous appearances have been made in and around Minne
apolis. Under the direction of Bruce Sielaff, former Northwestern National
employe, the chorus meets regularly throughout the year for practice sessions that
are looked forward to with great enjoyment. The success o f the EON Chorus is
noted by its record o f having won second place the past two years in the Aquatennial chorus contest, a feature of the annual spectacle which draws groups
from all parts o f the state.
N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

M innesota

News

EMBERS of the Minnesota Bank
ers Association, headed by M.
O. Grangaard of Minneapolis, sup
ported National Farm Safety Week
recently by publicizing the purposes
of the week and by setting up demon
strations, displays and contests so that
the accident record could be reduced.
Mr. Grangaard also is vice president
of the First National Bank of Minne
apolis.

surplus and undivided profits of $230,000 and deposits in excess of $5,600,000.
Officers are Herbert P. Buetow,
president; William C. Riedel and Mr.
Entenman, vice presidents; Arthur W.
Melander, cashier; and N. Robert
Hinsch, assistant cashier.
Election of four new officers of the
First National Bank of Minneapolis
was announced recently by H. E.

The Minneapolis Aquatennial, an
nual civic festival, meant added work
for employes of Midland National
Bank of Minneapolis—but they were
glad to do it.
The bank had the task of counting
money tossed into a large flag carried
in the Aquatennial parade. So many
coins were contributed that the flag
split from the weight. Contributions
went to the Crusade for Children,
which assists needy children abroad.
J.

Plans for a new building to house
the First Merchants State Bank of St.
Paul are being drawn, John Entenman, Jr., vice president, announced
recently. A site for the new edifice
has been purchased at the northeast
corner of E. Seventh and Mendota
streets and E. Minnehaha avenue.
Bank officials hope the project can be
carried out within a year.
Organized in 1919, the bank changed
its name to First Merchants in 1945.
Affiliated with the First National Bank
of St. Paul and the First Bank Stock
Corporation, the bank has capital,

W ILSON
Named assistant

S. R. O M L I E
cashiers

Atwood, president, following a meet

ing of the bank’s board of directors.
Styrk R. Omlie and John R. Wilson
were advanced to assistant cashiers in
the department of banks and bankers.
Kenneth R. Johnson and Frank B.
Krause were promoted to assistant
secretaries in the trust department.
Mr. Omlie joined First National in
1933. In 1940 he became a member of
the investment research staff of the
First Service Corporation.
He re
turned to the bank in March, 1947, and

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only $2.00 Paid Up in Full to the Middle of
next December.

MINNESOTA COMMERCIAL MEN'S ASSOCIATION
2550 Pillsbury Ave. So.

féorth w e t t e r n Ban ke r, S e p t e m b e r , 1948
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Minneapolis 4, Minnesota

since has been with the department of
banks and bankers. During the war
he served in Europe with the army
quartermaster corps.
Mr. Wilson became associated with
the bank in February, 1948, after pre
viously having been on the examining
staff of First Service Corporation. He
saw five years’ service in the army
during the war and was discharged as
a captain.
Mr. Johnson is a graduate of the
University of Minnesota law school.
He has served in the income tax and
probate divisions of the trust depart
ment. During the war he served three
years in the marine corps.
Mr. Krause has been with the corpo
rate division of the trust department
since 1943.
Clarence W. Groth of Minneapolis
recently was named assistant vice
president of the Minneapolis Federal
Reserve Bank and assigned to the
Helena, Montana, branch, according to
announcement by J. N. Peyton, presi
dent of the bank.
Mr. Groth has been with the bank
since 1923. Since 1943 he has been an
examiner. He will replace Clinton J.
Larson, assistant cashier.
Lloyd L. Leider and Donald L.
MacGregor of the First National Bank

of St. Paul were scheduled to attend
the fourth annual School of Banking
at the University of Wisconsin at
Madison. Mr. Leider is assistant cash
ier for country banks at First National
and Mr. MacGregor is assistant vice
president in charge of business de
velopment.
About 450 bankers were to attend
the sessions, sponsored by the Minne
sota Bankers Association and 15 other
groups in the Central States Bankers
Conference. Other bankers from the
Twin Cities area planning to attend
were Harold E. Krog of Stillwater and
Francis P. Woxland of Hastings.
Bank debits in St. Paul for the
first six months of this year were 14.7
per cent above those for a like period
in 1947. In Minneapolis the increase

M innesota

was 14.2 per cent. Debits in St. Paul
for the period were $2,806,248,000 and
in Minneapolis $6,176,428,000. For St.
Paul, these figures show an increase
of 174 per cent over the first six
months of 1940. In Minneapolis, the
increase was 163 per cent over the
first half of last year.
Joseph F. Ringland, president of the
Northwestern National Bank of Min
neapolis, has been elected to the board
of trustees of Shattuck School at Fari
bault, Minnesota.

procedure puzzle bankers in Sweden,
reports Ruth Anderson, secretary to
F. F. Zander of the Marquette National
Bank of Minneapolis.
Miss Anderson, on her return from
a five-week visit to Sweden, said
Swedish bankers couldn’t understand
how American bankers could give
loans on automobiles “ How did we
know that they had a car, was one of
their questions,” she declared. “And
they wanted to know what security
there was in a used car.”
The Northwestern National Bank

Appointment of Lloyd Wilkes as
executive secretary of the Minneapolis
chapter, American Institute of Bank
ing, was announced recently by Ralph
Spearing, chapter president. He suc
ceeds Alan W. Giles, who resigned.
Originally from Alexandria, Minne
sota, Mr. Wilkes attended the Uni
versity of Minnesota, the St. Paul Col
lege of Law, George Washington law
school and New York University. He
comes to the chapter from New York,
where he was a representative of
Brown & Bigelow, St. Paul advertis
ing concern.
Formerly he was assistant manager
of the Laundry and Dry Cleaners
Machinery Manufacturers Association
and the Laundry and Cleaners Allied
Trade Association of New York.
New York bankers generally look
for a conservative government and a
reduction in government costs if
Governor Thomas E. Dewey is elected
president, Harold Helm, president of
the Chemical Bank and Trust Com
pany of New York, declared recently
in Minneapolis.
Mr. Helm also said that American
production looks favorable for the
rest of this year because of accumu
lated demand for goods.
While in Minneapolis ,-he was guest
of Midland National Bank of Minne
apolis and of H. E. Atwood, president
of the First National Bank of Minne
apolis.
He was accompanied by
Huntington M. Turner, vice president
of the Chemical Bank.
Ade C. Boysen, assistant advertising
manager of the First National Bank of
St. Paul, was to attend a two-week
school in financial public relations at
Northwestern University last month.
The school offered classes in applied
psychology, techniques of public re
lations, development of public rela
tions policy, effective use of words,
salesmanship, effective speaking, ad
vertising and the study of case his
tories.

of Minneapolis was host recently to
gladiolus growers of the Northwest.
The annual gladiolus show was held
in the bank’s lobby.

News

Two Minneapolis women will be
committee chairmen for the 26th an
nual convention of the Association of
Bank Women in Detroit, Michigan,
September 24th to 26th.
Marian E. Mattson, assistant cash
ier of the Northwestern National Bank
of Minneapolis, will be program chair
man. G. Alice Catlin,, supervisor of
the filing department of the Farmers
and Mechanics Savings Bank of Min
neapolis, will be publicity chairman.
Directors of the First Grand Ave
nue State Bank of St. Paul recently
elected Franklin E. Truax cashier of
the bank, according to an announce
ment by Frank H. Delaney, president.
Mr. Truax will succeed Russell H.

FOR YOUR
CUSTOMERS
AT YOUR REQUEST
# As a correspondent of this bank you can call
upon us for many services to your customers. For
them at your request we will:
Issue travelers’ checks and personal letters
of credit.
M ake foreign rem ittances and collections
wherever conditions permit.
Make loans of approved character.
Serve as trustee or agent for individuals or
charitable institutions, and for pension and
profit-sharing funds.
Receive, deliver and safekeep securities.
Purchase and sell United States Government
Securities, State and Municipal Bonds.
As your Chicago correspondent, we share with you
. . . and your customers all of our hanking, trust,
bond and operational facilities.

THE NORTHERN
TRUST COMPANY
50 SOUTH

LA SALLE STRE ET. C H IC A G O 90. IL LINOIS

M em ber Federal D eposit Insurance Corporation

Certain phases of American banking

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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

Minnesota News

The new cashier began his
banking career in 1933 with the Farm
ers and Merchants Bank of Cavalier,
North Dakota. In 1936 he went to the
Minnesota National Bank of East
Grand Forks, and in 1939 joined the
staff of the Marquette National Bank
of Minneapolis. He entered the em
ploy of the First Grand Avenue Bank
last April. He served four years in
the army.
Mr. Johnson, prior to his transfer to
the First Grand Avenue Bank in 1946,
was employed at the First National
Bank of St. Paul. He is returning
there now as assistant cashier, accord
ing to an announcement by Julian B.
Baird, president.

Horace M. Hill, prominent in Min
neapolis business and banking activi
ties, died recently at the age of 86.
President of Janney-Semple-Hill and
Company, wholesale hardware firm,
since 1924, Mr. Hill was, in point of
service, one of the three oldest direc
tors of the First National Bank of
Minneapolis and a director of the First
Bank Stock Corporation.

Z)L BANK

ai tL YARD S

Johnson.

CARL

FR E DR IC K SE N
President

M A R K A. W I L S O N
Vice President
W I L L I A M C. SC HE NK
Asst. V. Pres, and Cashier
C L IF F O RD L. A D A M S
Asst. Vice President
JOHN S. H A V E R
Asst. Cashier
JAMES L. SM IT H
Asst. Cashier and Auditor
K I N L E Y W . SM IT H
Asst. Cashier

Business in the Northwest during
July continued at the accelerated pace
which marked activities in May and
June, according to bank debit figures
for the Ninth Federal Reserve Dis
trict released recently by the Minne
apolis Federal Reserve Bank.

Everything You Need
Here at the Live Stock National
Bank in Sioux City, you find all the
facilities of a big, city bank. You'll
also find friendly man-to-man con
tacts that are characteristic of a
smaller bank. Added together, they
spell prompt service and friendly co
operation on all your items, including
Sioux City or any out of town item.

STANLEY W. EVANS
Field Representative

N o r t h w e s t e r n Banker, S e p t e m b e r , 1948

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

Total debits for the 133 cities in the
district were $2,886,285,000 compared
with $2,450,794,000 for July 1947, a gain
of 18 per cent. For the first seven
months of 1948 the figure was $19,116,208,000, compared with $16,680,873.000 for the same period in 1947, a
gain of 15 per cent.
Minneapolis debits totaled $1,103,433.000 in July, compared with $936,011.000 last year, a gain of 18 per cent.
St. Paul debits were $467,327,000 for
.July, against $410,001.000 last year, a
gain of 14 per cent.
Paul W. McCracken resigned effec
tive September 1st as director of re
search for the Minneapolis Federal
Reserve Bank, a post he had held since
1945. He will become an assistant
professor of business conditions at the
University of Michigan school of busi
ness administration.
Succeeding him as research director
is Dr. .1. Marvin Peterson, head of the
economics department of Miami Uni
versity, Oxford, Ohio.

The final in a series of seven bank
ing clinics held throughout Minne
sota took place recently in St. Paul
with bankers of the Twin Cities and
surrounding areas in attendance.
M. O. Grangaard, president of the
Minnesota Bankers Association and
vice president of the First National
Bank of Minneapolis, said that “while
the clinics were held on an experi
mental basis this year, it is hoped that
their highly educational nature will
prove so valuable that they will be
continued in future years.”
Current banking problems were dis
cussed by authorities at the clinics.
Election of H. H. Corey, president
of Geo. A. Hormel and ompany, Aus
tin, Minnesota, as a director of First
Bank Stock Corporation of Minne
apolis was announced by Augustus H.
Kennedy, president, following a recent
meeting of the board.
Mr. Corey has been president of the
Hormel company since 1946. Associ
ated with the company since 1920, he
rose through various positions and
was made a director in 1928. A year
later he became a vice president. A
native of Escanaba, Michigan, he is a
graduate of the University of Nebras
ka and a veteran of World War I.
James A. Davis, cashier of the First
National Bank of Minneapolis, is treas
urer of the Hennepin County unit of
the American Cancer Society. It was
reported last month that James A.
Murphy, vice president of the First
National, was treasurer of the Henne
pin County unit.
Mr. Murphy is
treasurer of the American Heart As
sociation.

49
aims at raising $62,600 this fall for 12
service agencies.

South llakolii

Tony Westra, agricultural and live
stock representative of the Northwest
Security National Bank, and Stan
Morrill, who in a similar capacity
represents the National Bank of South
Dakota, assisted in judging livestock
at the Lyon County, Iowa, fair, at
Rock Rapids.

N EW S
J. M. LLOYD
President
Yankton

Joins Huron Branch
Appointment o f Cecil F. Stilgebouer
as assistant manager of the_ Huron
Branch, The National Bank of South
Dakota, Sioux Falls, was announced
last month by S. H. Finger, vice presi
dent and manager of the Huron
Branch.
Mr. Stilgebouer has assumed his
new duties and will be active in the
bank’s commercial loan department.
Adding another official to the bank’s
staff is necessitated by the increase in
the bank’s business, Mr. Finger stated.
A native of Danbury, Nebraska, Mr.
Stilgebouer was employed by the Live
Stock National Bank of Omaha for the
past six months as a livestock apprais
er and inspector. Prior to that time,
he was field man and accountant for
the Santa Clara County Dairy Herd
Improvement Association of San Jose,
California. From 1940 to 1945, he
was associated with the Bank of
America N. T. and S. A., in San Fran
cisco, in various managerial capacities,
including m an ager
of se v e ra l
branches.

Remodeling Bank
The Farmers State Bank of Stickney, South Dakota, is undergoing re
decorating both inside and outside.
The entire inside of the offices has
been painted, with new light fixtures
installed and new flooring covering
the old floor.

Foreman Recovering
L. C. Foreman, president of the
Corn Exchange Bank at Elkton, South
Dakota, and former president of the
South Dakota Bankers Association,
was reported recovering last month at
Rochester, Minnesota, following an
operation.

Attends Banking School
J. S. Holdhusen, cashier of the Ips
wich State Bank of Ipswich, South

CARL E. BAHM EIER, JR
Secretary
Huro::

Dakota, was gone last month for two
weeks’ attendance at the School of
Banking at the University of Wiscon
sin, Madison. This was the second
year of attendance for Mr. Holdhusen
at the School which requires resi
dent attendance for two weeks each
year for three years for the certificate
of graduation.

Remodeling at Claremont
The First State Bank of Claremont,
South Dakota, was undergoing com
plete interior redecorating last month.
The ceiling and woodwork were
being painted white and the walls a
light green. Teller and paying win
dows and counters were being re
varnished.
S io u x

F a i l s J V o ir s

of Roy h . Fenner,
cashier of the Sioux Valley Bank,
was announced by Erling Haugo,
president of the institution. Mr. Fen
ner has acquired a major interest in a
beverage concern here. He will re
main on the board of directors of the
bank.

e s ig n a t io n

Dr. Oscar Litteler, economist with
the Federal Reserve Bank of Minne
apolis, discussed economic trends be
fore the Rotary club.
C. A. Christopherson, chairman of
the board of directors of the Union
Savings Bank, was one of 10 Sioux
Falls men receiving a special award
for membership of 25 years or longer
in the Kiwanis club. The honors were
conferred at a convention of the Minnesota-Dakotas district of Kiwanis
International.
V. J. Lowe, vice president of the
Northwest Security National Bank,
was named treasurer of the 1948 Com
munity Chest campaign here 'which

NEWS AND VIEWS
(Continued from page 24)
Bennett Cerf, who writes most in

terestingly in each issue of the Satur
day Review of Literature, had these
stories to tell about our “friends” in
Russia. “ It won’t be long now before
the Russians have that atom bomb,”
boasted the reporter from the Worker.
“ In about five years a dozen agents
will pack bombs in suitcases, travel
inconspicuously to the various capitals
of decaying Western democracies, and
boom! that will be that!” “Ridicu
lous,” scoffed the News man. “Where
do you think they’re going to get the
suitcases?”
“The party leaders were putting on
a great show for visiting delegates
from the provinces. Stalin himself
took in tow a stalwart from the Cau
casus who had never been in Moscow
before. In one room of the Kremlin,
he pointed to a microphone, and said,
‘That little instrument is hooked up
to the entire world. We pour out
propaganda into it, and every person
alive hears us.’ The Caucasian was
duly impressed. ‘The whole world
hears,’ he marveled. ‘I’d like to try it.’
‘Okay,’ conceded Stalin. ‘You can say
just one word into the microphone.’
The Caucasian seized the instrument,
took a deep breath, and hollered,
‘HELP!’ ”
William A. Carson, for four decades
identified' with industry, finance and
civic affairs in Evansville, Indiana, has
been elected president of the Old Na
tional Bank.
At the same time, the resignation of
Lewis R. Elkins as vice president of
the bank was accepted. .
Mr. Carson will succeed Robert D.
Mathias who left to become president
of the recently formed Chicago Na
tional Bank.

Bert D. Helseher, president of the

THE NATIONAL BANK OF SOUTH DAKOTA
Huron
M em ber F ed era l D eposit Insurance Corporation

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Federal Reserve Bank of St. Louis

Sioux Falls

Vermillion

Affiliated w ith F IR S T B A N K S T O C K C O R P O R A T IO N
N o r t h w e s t e r n Ba nke r, S e p t e m b e r ,

1948

South Dakota News

Keokuk County State Bank at Sig
ourney, Iowa, is just finishing 50 years
of banking, and in a letter to the
N o r t h w e st e r n B a n k e r said, “ In regard
to my being in banking 50 years this
coming convention, it is quite a story
going from the cornfields of Iowa and
entering a banking career that has
now extended over almost 50 years at
this time. Many events have happened
during that time, many ups and
downs, but fortunately most of them
ups or I wouldn’t be in the business
today.”
George E. Porter, president of the
First National Bank of St. Joseph,

Missouri, spent his vacation last
month at Minaki Lodge, Minaki, On
tario, Canada, where he did not have
to worry about the increased redis
count rate of the Federal Reserve or
any other problems connected with
current banking legislation.
When the president and vice presi
dent of the Security State Bank of
Radcliffe, Iowa, declared “an extra
family dividend,” they announced it
as follows:
“Announcing the arrival of new
Executive Vice President Charles
Richard Drake, born August (», 1948,
weight 8 lbs., 10 oz. Carroll L. Drake,

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

NORTHWEST SECURITY
NATIONAL BANK
of Sioux Falls, South Dakota
South Dakota’ s Leading Hank
June 30, 1948
RESOURCES
C a sh o n H a n d , in F e d e r a l R e s e r v e B a n k , and
D u e fr o m B a n k s a n d B a n k e r s .................................... $10,960,915.77
U . S. G o v e r n m e n t O b l i g a t i o n s ...................................... 20,608,645.95
S tate a n d M u n ic ip a l B o n d s .............................................
939,040.82
O th e r B o n d s and S e c u r it ie s .............................................
1,445,437.52

S t o c k in F e d e r a l R e s e r v e B a n k in M in n e a p o lis ...................................
O v e r d r a ft s
.................................................................................................................
L o a n s a n d D i s c o u n t s ............................................................................................
B a n k in g H o u s e s .....................................................................................................

$33,955,040.06
45,000.00
3,933.12
11,041,442.96
240,000.00

Includes Banking Houses at Sioux Falls, Brookings, Chamberlain, Dell
Rapids, Gregory, Huron and Madison, all clear of encumbrance.

I n te r e s t E a r n e d b u t N o t C o l l e c t e d ...............................................................

164,129.20

T O T A L ..................................................................................................................$45,449,545.34
L IA B IL IT IE S
C a p ita l S t o c k — C o m m o n ....................................................$
S u rp lu s
.......................................................................................
U n d iv id e d P r o fit s an d G e n e r a l R e s e r v e s .................

500,000.00
1,000,000.00
593,608.66

R e s e r v e f o r I n te r e s t, T a x e s , a n d O th e r E x p e n s e s ...............................
I n te r e s t C o lle c t e d b u t N o t E a r n e d ................................................................
D e p o s it s :
T im e .....................................................................................$ 7,187,212.85
D e m a n d .............................................................................. 35,062,581.16
U . S. W a r L o a n .............................................................
807,230.63

O th e r L ia b ilit ie s

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

$ 2,093,608.66
242,433.95
56,428.09

43,057,024.64
50.00

T O T A L ..................................................................................................................$45,449,545.34
BR ANC H ES

BROOKINGS, CHAMBERLAIN, DELL RAPIDS,
GREGORY, HURON, MADISON
A ffilia te d w ith N o r t h w e s t B a n c o r p o r a tio n
M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n

N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

President, Rachael Drake, Vice Presi
dent.”

The N o r t h w e st e r n B an k e r extends
its sincere congratulations and hopes
that the “corporation” will have many
more “dividends.”
The government lost $170,169,000 on
potatoes during the 1943-47 crop years.
The government is now losing money
on potatoes at the rate of 4 million dol
lars a week as the new crop moves to
market.
The agriculture department is re
quired by law to support potatoes at
90 per cent of parity until the entire
1948 crop has been marketed, which
means that potatoes bought by the
government are resold at 20c a ton for
hog food. At 5c a pound we pay $100
a ton for those we eat. Certainly
cheaper “to be a hog.”
John T. Hamilton II, president of
the Merchants National Bank, Cedar
Rapids, Iowa, spent most of the month
of August at South Hampton, Long
Island, where he joined his wife and
son who had been spending the sum
mer there. The family returned to
Cedar Rapids shortly after Labor Day.
T. C. Kirkpatrick is managing edi
tor of “ Counterattack” which is an
anti-communist news letter published
by former FBI men at 55 West 42nd
St., New York.
In one of their recent issues in
which they give an analysis of 43 com
munist members who steered the
Third Party Convention in Philadel
phia, they give the inside story of
Lee Pressman, a top Communist in
the Wallace Party.
The report says, “Lee Pressman and
John Abt were members of Commu
nist Party cell in Agricultural Ad
justment Administration under Henry
Wallace a decade and a half ago.
Pressman became the patronage dis
penser of the Communists in Govern
ment. He found jobs for party mem
bers and fellow travelers in key posts
in various departments and other
agencies, especially National Labor
Relations Board. Later he joined the
newly founded CIO as its general
counsel . . . but he continued to
manipulate patronage in government.
In CIO, Pressman was the Commu
nists’ ‘Comrade Big’ at National CIO
headquarters. He stayed in CIO until
early this year, when Philip Murray
committed the CIO to a policy of op
posing the Communists’ Third Party.
Then Pressman quit to go over to Wal
lace headquarters and become top
man.”

(Turn to page 68, please)

Sortii Dakota

N EW S
^

V S * ^

A
J IIIR

ARNE A . GREGOR
President
Leeds

New Assistant Cashier
The First National Bank in Bot
tineau, North Dakota, has announced
the ;appointment of Harold C. Refling
to the position of assistant cashier.
Mr. Refling has considerable training
and experience in banking. Previous
ly, he has been employed as assistant
cashier of the First National Bank in
Drake, prior to which he was with the
National Bank in Jamestown, North
Dakota.
Mr. Refling is a graduate of St. Olaf
College, Northfield, Minnesota, and
also a graduate of Northwestern Uni
versity, Evanston, Illinois.
He served with the Army Air Force
for a period of 42 months and was re
leased to inactive duty in the Air
Force Reserve with the rank of cap
tain. He served overseas with the
614th Fighter Control Squadron.

C. C. WATTAM
Secretary
Fargo

He came to Fargo from a bank in
Rolla, North Dakota, February 1,
1924, to assume the position of as
sistant cashier of Dakota National
Bank.
He later was named cashier and in
1940 was elected a director of the bank.
In 1942 he was named vice president.
He had been a member of state and
national bankers associations and
served a term as president of South
eastern District, North Dakota Bank
ers Association.

A.B.A. CONVENTION
(Continued from page 26)

ufacturers National Bank and chair
man of the Detroit General Conven
tion Committee, will extend greetings
on behalf of the Detroit banks.
The second general session, *to be
held on Wednesday morning. Sep
tember 29th, will officially close the
convention. At this session will be
In crease Common Stock
Two North Dakota state banks have the election of officers of the Associa
been authorized by the state banking tion and adoption of resolutions. Ad
board to amend their articles of in dresses will be delivered by Dr. Nadler and Mr. McCaffrey.
corporation to provide for increases
At each of the Division meetings on
in common stock, J. A. Graham, chair-Monday, September 27th, the presi
man, announced last month.
They are the Security State Bank of dent of the Division will deliver the
New Salem, from $20,000 to $40,000, opening address—Gordon D. Palmer,
and the Security State Bank of president of the First National Bank,
Tuscaloosa, Alabama, for the National
Wishek, from $15,000 to $25,000.
Bank Division; L. A. Tobie, president
and treasurer, Meriden Savings Bank,
Addresses Kiwanis Club
Meriden Connecticut, for the Savings
A. A. Mayer, cashier of the Dakota
and Mortgage Division; Elwood M.
National Bank of Bismarck, North Da
Brooks, president of the Central Bank
kota, recently appeared before the
and Trust Company, Denver, Colorado,
Kiwanis Club of Bismarck to give a
for the State Bank Division; and R. M.
talk on commercial banking proce
Alton, vice president in charge of trust
dures. He briefly sketched the history
department of the United States Na
of American banking and traced the
tional Bank, Portland, Oregon, for the
growth and development of various
Trust Division.
phases of bank activity.
Mr. Kent and Dr. McFarland will
speak at the State Bank Division meet
R. H. Butterwick
ing.
Ralph Hayden Butterwick, 59, vice
The Savings and Mortgage Division
president of Dakota National Bank of will have a panel which will portray
Fargo, North Dakota, and resident of “A Mortgage Committee in Action.”
Fargo 24 years, died in a Fargo hos Participants will be Mr. Tobie; Wil
pital recently.
liam A. Marcus, senior vice president
Born at Milton, Dakota Territory of the American Trust Company, San
(now Cavalier county, North Dakota), Francisco; Rowland R. McElvare,
September 20, 1888, he was graduated senior executive vice president of the
from Milton high school and Valley Bank for Savings, New York City;
City, North Dakota, Normal school. Howard B. Smith, treasurer of the

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Federal Reserve Bank of St. Louis

Middletown Savings Bank, Middletown, Connecticut; and H. R. Temple
ton, vice president of The Cleveland
Trust Company, Cleveland.
The National Bank Division will
feature a panel discussion in which
the participants will be Mr. Delano,
Mr. Cook and Mr. Clayton. Norfleet
Turner, president of the First National
Bank, Memphis, Tennessee, will be
the moderator.
Mr. Remington will speak at the
Trust Division session. This annual
Division meeting will also hear from
two of the Division’s former leaders;
Walter S. McLucas, chairman of the
board of the National Bank of De
troit, who was Division president in
1927-28, will extend greetings; Ralph
Stone, retired vice chairman of the
board of The Detroit Trust Company,
whose record of activity goes back to
his appearance as a speaker at the
first meeting of the Division in 1897,
will deliver an address on “Fifty
Years of Trust Service.”
Along with the business sessions of
the convention and Association work
ing groups, will be many special fea
tures. On Tuesday morning, Septem
ber 28th, the annual agricultural
breakfast of the ABA Agricultural
Commission will be held in the grand
ballroom of the Book-Cadillac.
The Detroit Symphony Orchestra,
with Walter Poole conducting, will
play at the Annual ABA Sunday
Evening Hour to be held at Music
Hall on Sunday, September 26th. Rose
Suzanne DerDerian will be soloist.
Social events on the program will
include a reception and tea at four
o’clock Sunday afternoon at both
headquarter hotels, the Book-Cadillac
and the Statler; a ladies’ luncheon and
fashion show, tendered by the J. L.
Hudson Company department store,
at the Masonic Temple Monday noon;
trips through the Ford Motor Com
pany plant, the Chrysler Corporation’s
Plymouth assembly plant and its en
gineering laboratory, and the Edison
Institute Museum and Greenfield Vil
lage; also the opportunity to attend
the Detroit Tigers vs. St. Louis Browns
baseball games on September 28t,h
and 29th. There will not be any golf
tournament, but facilities will be avail
able for those desiring to play golf.—
The End.

Real Ambition

Captain (on ferry, shouting down
into crew’s quarters): Is there a mack
intosh down there big enough to keep
two young ladies warm?
Voice From Below: No, but there’s
a MacPherson who’s' willing to try!
N orthw estern

Banke r, S e p t e m b e r , 1948

52¡

FOR 92 YEARS
SOUND BANKING SERVICE

N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

banks have been providing the maga
zine to 4-H leaders for the pasi several
years.

N eb rask a

Increase Capital

N E W S
J. O. PECK
President
Columbus

CARL G. SW ANSON
Secretary
Omaha

Heads McCook Bank
George F. Moss, who has worked
for the McCook National Bank, Mc
Cook, Nebraska, for all hut five years
of the hank’s 41-year existence, last
month took office as president of the
hank, succeeding the late Charles
O’Brien.
Mr. Moss joined the McCook Na
tional Bank in June, 1912, as book
keeper. He became cashier in 1928
and was electer vice president in 1947.
Mr. Moss also served in two public
offices. He served one term as mayor
and is now in his fifth consecutive
two-year term as city treasurer.
At the last board meeting the bank’s
board of directors delayed filling the
vacancy on the board caused by Mr.
O’Brien’s death. Present directors are
C. D. Purinton, M. O. Brown, Mrs.
Mary Brady and Mr. Moss.
Other officers are: M. C. Brady, vice
president; M. O. Brown, cashier, and
H. E. Blum, assistant cashier.

New Personnel
George C. Soker, president of the
State Bank of Hildreth, Nebraska, an
nounced last month that Julius H.
Mietzner of Wilcox and Kenneth Frerichs of Macon Prairie have been
employed by the bank.
Mr. Mietzner was born and raised on
a farm a few miles from Hildreth, and
for the past seven years has been with
the First National Bank of Wilcox.

Pass 50th Anniversary
The Stockmen’s National Bank of
Rushville, Nebraska, was 50 years old
last month. The bank was opened in
August, 1898, just 15 years after the
town was founded.
Present officers of the bank are: J.
W. Hanks, president: Edwin B. Otteman, vice president; H. A. Dale, cash
ier, and Jerene Ward and Bennett F.

Johnson, assistant cashiers. Deposits
now are in excess of $3,009,000.

Placek Returns Home
Uphold Record
Nebraska repeated again its record
of oversubscribing the state ouota in
bond drives when Leland R. Hall,
state director for the U. S. Savings
Bond Division, reported last month
that the final Security Loan checkup
revealed Nebraska had achieved 123
per cent of its quota. Sales for the
recent drive amounted to $46,201,000,
against the quota of $37,500,000.
Mr. Hall stated that 69 counties ex
ceeded their goal, six counties were
over 90 per cent, seven counties had
between 80 per cent and 90 per cent,
and only 11 counties were less than
80 per cent subscribed.
Leading the list percentagewise was
Wheeler county which sold $53,631 for
335 per cent of its quota. Keya Paha
county turned in an even 300 per cent
record with $111,031 sales in bonds.
Douglas county, which includes Oma
ha, had the greatest dollar volume of
sales, the total being $13,144,532, or
102 per cent of its quota.
To date Nebraska sales are still 277
per cent of redemption and maturities.

Ashland Man Promoted
Carl H. AViggenhorn, former vice
president of the Farmers & Merchants
National Bank of Ashland, Nebraska,
and for the past two years a member
of the staff of California Bank, Los
Angeles, was recently appointed an
assistant manager of the bank’s Bev
erly Hills branch.

Helping 4-H Members
The Franklin State Bank and the
Hildreth State Bank have arranged
for 4-H Club leaders of Franklin coun
ty, Nebraska, to receive the national
4-H Club news magazine. The two

D id you know t h a t t h is c o m p a n y h a s s p e c ia liz e d
C o n s u lt

u s f r e e l y a t a n y tim e .
F IR S T

N A T IO N A L

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Federal Reserve Bank of St. Louis

BANK

Emil E. Placek, president of the
First National Bank of Wahoo, Ne
braska, returned home last month
after a round-the-world trip during
which he visited points in the Philip
pines he first saw as a soldier 50 years
ago. Mr. and Mrs. Placek left on
the tour last March.

Attend Banking School
Nine Nebraska bankers were in at
tendance at the Central States Confer
ence School of Banking at the Univer
sity of Wisconsin at Madison.
Among this group were: G. W. Tay
lor. cashier, McDonald State Bank,
North Platte: Carl Mostrom, cashier,
Farmers and Merchants Bank, Ceresco: B. M. De Lay, assistant cashier,
The De Lay National Bank, Norfolk,
and Max B. Horn, vice president, The
First national Bank, Hay Springs.
Attending from Omaha were John
R. Lauritzen, assistant vice president,
The First National Bank; Charles W.
Gorr, assistant cashier, and Britton
Knight, comptroller, Omaha National;
Lester E. Souba, assistant auditor,
Live Stock National Bank, and William
Doran, assistant cashier, Federal Re
serve Bank. Sumner Slater, assistant
trust officer at the Omaha National
Bank, was an instructor.

George F. Harpster
George F. Harpster, 89, vice presi
dent of the Blue Springs State Bank at
Blue Springs, Nebraska, died in a
Beatrice hospital recently.
Mr. Harpster was a pioneer resident
of Blue Springs, moving there in a
covered wagon from his home town
of Knoxville, Iowa. He was a 50-year
member of the Masonic order and
holder of the Jordan medal.

Scarborough & Company

in B a n k I n s u r a n c e s in c e 1 9 1 9 — t h a t i t h a s th e inside

view o n B a n k I n s u r a n c e p r o b l e m s ?

At a meeting of the stockholders of
the Bank of Clarks, Nebraska, held
recently, it was unanimously decided
to increase the bank’s paid up capital
to $25,000 by the payment of $10,000
cash additional capital by present
stockholders, pro rata as to their-holdings.
This brings the bank’s total paid in
capital and surplus to $40,000.

Insurance Counselors
B U IL D IN G

C H IC A G O

IL L IN O IS

STATE

to Banks

4325

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

N ebraska

News

the Community Chest’s board of gover
nors, among their other civic activi
ties.

ILLIAM A. SAWTELL, president

of the Stock Yards National Bank
of Omaha, is one of four business men
named as associate chairmen for the
Community Chest campaign in Omaha
this fall. The other three men are Fred
L. Haas, president of Fred & Clark
Haas, Inc.; Frank A. McDevitt, Omaha
manager of General American Life
Insurance Company, and Ambrose J.
Seitz, traffic vice president of the
Union Pacific Railroad.
They will assist General Chairman
Edwin N. Van Horne, president of the
Federal Land Bank of Omaha, in out
lining preparations for the drive. All
four men are prominent in Omaha
civic affairs, Mr. Haas serving in 1946
as state chairman for the American
Cancer Society drive and Mr. Sawtell,
Mr. McDevitt and Mr. Seitz serving on

Wives of some bank employes don’t
worry much when their husbands are
out nights.
That’s because their mates are
studying to get better bank jobs.
More than 47,000 of the 320,000 bank
employes in the United States are
“hitting the books” according to
LeRoy Lewis of New York City, edu
cational director of the American In
stitute of Banking.
He was in Omaha for a regional
meeting of AIB Leaders from eight
states.
Mr. Lewis said that burning the
midnight oil usually pays off, but
added that there’s no guarantee that

CORRESPONDENT
K N O W -H O W
George E. Porter, President
R. E. Jones, Jr., Vice President
J. D. McCaskey, Vice President
J. J. Walsh, Assistant Vice President
Y. P. Meyer, Assistant Vice President
Walter Canter, Cashier
Loyd A. Walker, Assistant Cashier
J. M. Ford II, Assistant Cashier
Graham Porter, Assistant Cashier

First National Bank

additional study is the road to a bank
presidency.
The AIB is proud of its record as
having the largest adult educational
program affiliated with private in
dustry. The AIB offers 19 courses, in
cluding law, economics, accounting
and business’ administration. Ninety
per cent of the officers of Omaha
banks have taken at least some of the
courses. Emphasis is placed on pub
lic speaking and debating in AIB
chapters and study groups.
Twenty-two chapter and study
groups were represented at the Omaha
meeting. Lester Souba is president of
the Omaha AIB chapter. Among those
who attended the meeting were Chris
Kies of Minneapolis, AIB Executive
Council member, and Carl A. Bowman,
Topeka, Kansas, secretary of the To
peka Bankers’ Association.
Ted
Spaustat was chairman of arrange
ments for the meeting.
Few Omahans know that the roof of
the United States National Bank build
ing is a sun-deck where employes of
the Bank can eat lunch or gather for
noon-hour talkfests. A new floor has
been laid and other improvements
made.
Mrs. Dale Clark left July 27th on her
annual vacation trip to Estes Park,
Colorado. She will spend six weeks at
Elkhorn Lodge in Estes Park Village.
Mr. Clark, president of the Omaha Na
tional Bank, was to join her later.
Kirkpatriek-Pettis Company, Omaha
investment banking firm, has pur
chased a 250-thousand-dollar Scottsbluff, Nebraska, School District build
ing bond issue.
Interest rates will range from 2 to
3 per cent on the bonds, which mature
serially in from three to 20 years. The
bonds are part of a $900,000 bond issue
approved by voters last fall.

The month of August found Mrs. J.
T. Stewart, 111, at the Stewarts’ sum
mer cottage on Echo Bay at Lake
Okoboji.
Mrs. Stewart soon must
begin the final push toward complet
ing arrangements for the Ak-Sar-Ben
Ball, for which she is chairman of the
women’s committee. Mrs. Stewart is
the wife of the vice president-cashier
of the First National Bank of Omaha.
With Mrs. Stewart at Okoboji were

St. Joseph, Missouri
MODERN FIXTURE CO.
Member Federal Deposit Insurance Corporation

“ S in c e

1908“

BANK FIXTURES
9 29 C h am p a St.
D e n v e r 4,

N o r t h w e s t e r n Banke r, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

P h o n e M A in 4789
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S t o c k Y a r d s N a tio n a l!
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For unexcelled service especially de

signed for Banks and Producers in this great
Agricultural Empire.

the

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O m a h a 's

G reat

L iv e

S to ck

M arket

StockYardsNational Bank

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Federal Reserve Bank of St. Louis

Omaha, Nebraska
M EM BER O F FEDERAL D EPO SIT IN SU RA N C E C O R P O R A T IO N

N o r t h w e s t e r n Ba nke r, S e p t e m b e r , 1948

Nebraska

News

her daughter, Gertrude, junior next
fall at Duke University, and son, Jim,
who has completed his studies at the
Fountain Valley School, Colorado
Springs.
Governor A7al Peterson of Nebraska
has appointed T. H. Maenner, Omaha
realtor, to the board of directors of the
Omaha Public Power District to suc
ceed Charles D. Saunders, who has
taken a banking post in Seattle, Wash
ington.

9 *i

The Northwestern Bell Telephone
Company will sell $60,000,000 in
bonds, it was announced recently.
The proceeds will go to pay for im
provements and additions to the fivestate system.
Russell .1. Hopley, president, said
the bonds will be dated about Novem
ber 15th and will mature in about 45
years.

after a visit with Mrs. Barlow’s
mother, Mrs. George Johnston. They
were en route home to Kansas City,
Missouri, from a motor trip through
Wyoming and South Dakota.

Milton Barlow, former Omaha bank
er, and his wife left Omaha recently

Chamber of Commerce.

Jlincoln —

Ga+ttUte*ttal—

Despite recessions in some classifi
cations nationally, Omaha business
continues to go ahead of last year, ac
cording to a survey by the Business
Research Department of the Omaha
Bank clearings and debits were
among eight of the 12 major business
barometers which showed gains for
the first half of 1948 over the same
period in 1947. The gain for clearings
was 8 per cent, for debits 6 per cent,
Employment was up slightly for 42
reporting firms.
Guests at the home of Mr. and Mrs.
E. N. Van Horne have been their son

Where a Correspondent
relationship means
SER V IC E

TH A T

SATISFIES

and daughter-in-law, Mr. and Mrs.
Leonard Van Horne of Fargo, North
Dakota. They spent a week in Omaha.
E. N. Van Horne is president of the
Federal Land Bank of Omaha.
Mrs.

(ONTINENTAL RATIONAL

B
a/ k
LIN C O LN
Member Federal Deposit Insurance Corporation

Peter

McDermott,

80,

mother of .1. F. McDermott, vice presi
dent of the First National Bank of
Omaha, and of Edward K. McDermott,
Omaha attorney, died recently.
Sixty years ago, she and her late
husband founded St. Bernard’s hos
pital in Council Bluffs.
She is also survived by three other
sons, including John R., San Fran
cisco; Dr. William O., Los Angeles;
and Paul H., Omaha.

Banker Heads Club
Jim Ivins, vice president of the
Sioux National Bank of Harrison,
Nebraska, was named president of the
Harrison Community Club to replace
Adin Abel, who failed to qualify after
the regular election in June.

Mrs. Clara Kirk
assure you o f prom pt, efficient
handling o f every type o f banking transaction.
Our extensive services are at the disposal o f

Mrs. Clara Kirk, 78, died in a hos
pital in Lincoln, Nebraska, last month
of bronchial pneumonia. She was the
widow of the late I. A. Kirk, former
president of the Exchange Bank of
Gibbon, Nebraska, who died in 1944.

all banks.

I\o Luck

it y

a t io n a l

a n k

A M I T R U S T C O M P A N Y o f C h ica g o
208

SOUTH

( MEMBER

SALLE

STREET

FEDERAL D EP O S I T I N S U RA N C E

CORE.)

One Fisherman: Have any luck?
Another: No. I can’t get the cork
out.

BANKS

Bought and Sold

Confidentially and with becoming dignity

BANK E M P L O Y E E S

PLA CED

43 Y e a r s S a t is f a c t o r y S e r v ic e

CHARLES E. WALTERS CO.
OMAHA, NEBRASKA

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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Federal Reserve Bank of St. Louis

1948

Nebraska

SPECIAL CHECK FOR
THE BLIND
(Continued from page 28)
check with no assistance whatsoever.
The use of the thumb prints reduces
the danger of forgery to an absolute
minimum.
If any blind person desires a check
ing account and can sign his name, he
may have checks identical with these,
except that the raised oblongs for
fingerprints have been removed.
The value of this new service to
blind people is pointed up in a letter
received by the Omaha National Bank
from Alfred Allen, assistant director
of the American Foundation for the
Blind, Inc., in which Mr. Allen said:
“Again let us express our apprecia
tion to you for your interest in the
blind and our congratulations on hav
ing simplified for them the whole
process of preparing their own
checks.”

Covered by Insurance
Officials of the bank’s carrying in
surance company have been consulted
and they have approved the check as
covered under the Forgery Section of
their Bankers’ Blanket Bond. The
check has been copyrighted by The
Omaha National Bank, and permis
sion to use it will be given any bank
without charge, subject only to the
condition that the checks shall also be
furnished the blind person without
charge.
The Klopp Printing Company of
Omaha, Nebraska, will print these
checks up in pads of 25 each at a cost
of $32.00 for 500 or $39.00 for 1,000,
f o.b. Omaha. They should be fur
nished with the name of the bank,
name of city, A.B.A. bank number or
routing symbol, and a letter stating
that no charge will be made to the
blind customer for the checks.—The
End.

partners in a mercantile establishment
in a state which had as one of its
statutes the so-called Uniform Partner
ship Act. The estabishment had sev
eral trucks and one of them, while
being driven by one of the firm’s driv
ers on company business, became in
volved in an accident due to the neg
ligence of the driver. There was no
insurance coverage and the injured
party sued only the banker-partner.
Was he liable for the full amount of
the damages?

Yes. Under the Uniform Partner
ship Act the partners in an enterprise
are jointly and severally liable for the
wrongful act of one of their employes

(Continued from page 30)

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Federal Reserve Bank of St. Louis

, Morton, a Minnesota banker,
owned a tract of land in that state
upon which was located an airplane
hangar. An airport commission was
established for the area and, in as
sembling the various tracts involved
to make the airport, it commenced pro-

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Y o u r E v e r y - D a y or O u t - o f - t h e - W a y
Correspondent Needs

LEGAL QUESTIONS
unreasonable to hold that the parking
lot owner accepted possession and con
trol of the car so as to become liable
for the damages resulting from its
theft. The fact that there was no at
tendant present on the lot to accept
the car was an important considera-

which is within the scope of his em
ployment. Because their liability is
joint and several an injured plaintiff
need not sue all partners but may sue
and recover from any one or more of
them. Michigan and the federal courts
are among the jurisdictions in which
specific holdings to this effect may be
found.

c€ a // cm

News

£ >
In Kansas City

It’s
CITY NATIONAL

A t City National, y ou ’ll find the business know
how, experienced personnel and' modern equip
ment necessary to handle your usual corres
pondent needs faster; better. And for your added
convergence, City National specializes in the
unusual services that facilitate your banking busi
ness around the corner, across the continent or
around the world.
Y o u ’ll appreciate City National’s “ years ahead”
facilities and friendly personal interest. In Kansas
City, y ou ’ll enjoy the convenience of free, 48-hour
parking in our garage, and you ’ll like to use one
of our room y, private conference room s . . .

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

Ì 94$

Nebraska

News

ceedings to take over Norton’s tract
and building under its rights of emi
nent domain. As an incident to show
ing the value of the property the com
mission sought to prove that Morton
had offered it for sale in the open mar
ket as of about the time of the con
demnation for $10,000. He was seek
ing $20,000 for it from the commission.
Could the commission offer the proof
of the lower value?

Yes. In a recent decision involving
analogous facts the Minnesota Su
preme Court held that, in determining
a value in an eminent domain proceed
ing, an offer to sell the property in
volved may be proved against the

owner as an admission of its value at
or near the time of the offer. In so
holding the court cited decisions in
Illinois and Oklahoma to the same
effect as precedents for its ruling.

. McKeon, an Illinois banker, was
divorced by his wife. Alimony was
decreed in her favor in an amount
sufficient to maintain her in the sta
tion in life to which McKeon had ac
customed her at the time of the divorce and prior thereto. Thereafter
McKeon made a lot of money and
amassed a substantial fortune. Be
cause of this his wife asked for an in
creased alimony allowance. Was she

Serving N ebraska
Banks and Bankers
Since 1 8 7 1 . . . .

‘ F I R S T N A T IO N A L
B A N K

O F

L IN C O L N

Member Federal Deposit Insurance Corporation

entitled to the increase requested?

No. The wealth amassed by the hus
band after the entry of the divorce
decree and his increased income in
and of themselves did not entitle his
former wife to an increase in alimony
payments. Her former husband was
bound to maintain her only in the sta
tion in life to which he had accus
tomed her at the time of the divorce
and prior thereto.
C5 . Marble, a Nebraska hanker, at
tended a farewell party for one of his
cronies in that state who was going
to Hollywood, California, to start a
banana business. Pottery, a great
practical joker, was also in attendance.
In playing a practical joke on Marble,
Pottery hurt him badly. Pottery had
not intended any bodily injury and
was in no way malicious in his ac
tions. Could Marble recover from
Pottery for his damages?

Yes. The fact that a practical joke
is the cause of an injury to a person
does not excuse the perpetrator from
liability in damages for the injury sus
tained. When one does an act which
proves injurious to another, an action
in tort generally arises in favor of the
injured person, although the act was
done without malice and no injury
was intended. The Nebraska Supreme
Court so held in a recent decision. -

Dempster, a South Dakota bank
er, leased a farm in that state to his
son. The son and his wife and ten
children lived on the property and
used it as their home. Dempster died
leaving by will the farm to his son
subject to a life estate in his, Demp
ster’s, widow. As an incident to set
tling Dempster’s affairs, which were
quite involved, the son agreed with
the widow that she should have the
farm absolutely and free of his re
mainder interest therein. The son’s
wife did not sign the agreement. If
the son and his family had homestead
rights in the farm, the agreement was
not valid because of its lack of her
signature. Was it valid?

Yes. The agreement between the
son and the widow was valid and the
signature of the son’s wife was not
necessary. The son’s remainder es
tate was a future one and, because his
ownership would not take hold under
the will until a later date, it would not
support a claim to homestead rights.
This would be true as long as the prior
life estate in the widow continued.
The South Dakota Supreme Court so
held in a recent decision.

. Schneider, a North Dakota hank
er, owned and operated a gasoline
N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

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

N ebraska

News

filling station in that state. One day
Detwiler negligently drove his auto
mobile into the pumps and station
building and damaged them consider
ably. Detwiler’s insurance company
settled with Schneider for part of his
loss and Schneider gave Detwiler a
full release from liability. Schneider
sought ‘to recover the balance of his
loss from his own insurance company.
He had given Detwiler the release
without consulting them. This re
lease nullified any rights of subroga
tion Schneider’s insurance company
might have had against Detwiler.
Would it, ordinarily, nullify any claim
Schneider might make against his in
surer?

Yes. If an insured settles with a
tort-feasor or one primarily liable for
a loss and releases him fully from all
liability before his insurance company
pays on a policy, it is generally held
that such release destroys the insur
er’s right of subrogation and that such
destruction is a complete defense to an
action on the policy by the insured
against his insurance carrier. North
Dakota, as well as Indiana, Texas and
Wisconsin, are among the states recog
nizing this rule.

Benton had prepared, and duly
executed, a will which named Aycock,
an old banker friend, executor. Sev
eral months later Benton died. Aycock, who knew of the will, searched
high and low for it but neither he,
nor anyone else, was able to find it.
There were no clues or information as
to whether the document had been, or
had not been, destroyed. It had been
last seen in Benton’s custody. In such
circumstances would Benton be held
in most states to have died without a
will?

J'ÂDÎÏL (DjuaIl

JUL Qowvl . . .

The trail herd stopped at sundown . . . hut all through
the night men watched and worked to hold the herd
together so that the next day’ s work might not he delayed.
Here at the Inter-State ‘ ‘tomorrow’ s” work is handled
more promptly and efficiently because of Inter-State’ s
Night Transit Department. Adjoining the Kansas City Post
Office and opposite the Union Station, this department
receives, sorts and handles night mail, often saving a full
day on many transit items. It is another plus value,
typical of the unusual service the Inter-State offers to its
correspondents.

the

I nter -S tate National Bank

UVESTOCK EXCHANGE BLDG.

LATH. AND GENESEE STS,

y/ u j d o i i ì ù
Yes. Where a person executes a will
during his lifetime and thereafter had
custody of, or access to, the instru(Turn to page 69, please)

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Federal Reserve Bank of St. Louis

Member of The Federal Deposit Insurance Corporation

Bank oE
Oldest N-ational Bank. F r o m O m a h a W est

Member Federal Depusit Insurance Corporation
N o r t h w e s t e r n Ban ke r, S e p t e m b e r ,

194B

o u U

r ìi

keep Tace

Theie once was a plesiosaurus
W ho lived when the earth was all porous
But it fainted with shame
W hen it first heard its name,
And departed long ages before us.

It wasn't shame, of course, which caused the
plesiosaurus to disappear from this part of the
country it once roamed. It became extinct sim
ply because it couldn't keep up with the chang
ing world and its inhabitants.
Banks, too, know that it is a constant chal
lenge to adapt their service to keep pace with
the needs of their customers. Human habits
change and it is up to bankers to be ready with
the right service needed at the right time.
Knowing your business thoroughly . . . to be
ready with the services you need when you
need them . . . has been the rule on which our
complete correspondent banking facilities have
been developed during the past 41 years.
More than 400 local banks now look to tlm
Bank of Friendly 24-Hour Service for swift, per
sonal attention to their own needs . . . covering
every type of banking assignments.

L iv e
O
T H E

sto c k ^

BANK
M em ber

OF
F ed er a l

N o r t h w e s t e r n Banke r, S e p t e m b e r , 1948

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

N E B R A S K A

F R I E N D L Y
R ese rv e

ban k

and

F ed er al

2 4 - H O U R
D eposit

In s u ra n c e

S E R V I C E

C o r p o r a t io n

1 «» \v a

N EW S
W . W. Ë LASIER

FRANK W ARNER

President
Jesup

Open New Bank
Between 2,200 and 2,500 visitors at
tended the opening day celebration of
the new Eagle Grove National Bank
at Eagle Grove, Iowa, last month. A
number of out of town guests, includ
ing a number of bankers, attended the
affair.
The Eagle Grove National Bank
opened for business August 14th with
capital of $50,000, surplus of $15,000,
and undivided profits of $10,000.
Officers of the bank are: W. H.
Brenton, president; Francis T. Shadle,
executive vice president; G. C. Kelly,
vice president; L. J. Paulson, cashier,
and C. S. Johnson, comptroller.
Mr. Shadle has been with the Palo
Alto County State Bank at Emmetsburg for a short time and prior to
that his home was for many years in
Estherville. Mr. Paulson was former
ly associated with the Boone State
Bank and Trust Company as manager
of its Boxholm office.

Earl M. Cary
Earl M. Cary, 67, vice president of
the Jasper County Savings Bank at
Newton, Iowa, and head of the bank’s
farm loan department, died last month
after suffering a heart attack in his
home.
Born in Killduff, he was a lifetime
Jasper county resident.
He was associated with his uncle
in the lumber business at Lynnville
until 1901, when he entered the bank
ing business there. He was cashier
of the bank there 17 years prior to
joining the Jasper County Savings
Bank staff 30 years ago.
Mr. Cary was a charter member of
thp Kiwanis Club and a member of the
Chamber of Commerce.
He is survived by his wife; two
brothers, Coral of Long Beach, Cali
fornia, and Herbert of Burlington,
Iowa, and two sisters, Mrs. Viola Nyhouse, Denver, Colorado, and Mrs.
John Van Gilst, Killduff.

Iowa Bond Sales
Roger F. Warin, state director of
the United States savings bonds divi
sion for Iowa, announced last month
that total Security Loan drive sales of

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

Secretary
Des Moines

Series E, F and G Bonds, exclusive of
special investors’ purchases, amounted
to $74,596,632. Iowa’s quota was $100,000, 000.

Sales to special investors, not includ
ing commercial banks, were $10,870,000, while sales to commercial banks
reached $29,508,000. Total sales in all
three classifications amounted to $114,974,632.

Anthon Annual Meeting
At the annual meeting of stockhold
ers and directors of the First Trust
and Savings Bank at Anthon, Iowa,
recently, all officers and directors were
re-elected. It was voted to add $5,000
to surplus, the capital structure now
made up as follows: Capital, $25,000;
surplus, $40,000, and undivided profits
in excess of $7,500.
Earl A. Hoffman is president, Frank
C. Gothier is vice president, Homer M.
Boyd is cashier, and W. R. Chicoine is
assistant cashier. The first three are
directors, along with Peter Jansen,
Arnold Petersen, Fred Trecker and
Carleton C. Van Dyke.

Joins Dexter Bank
Herbert F. Sturges was announced
last month as new assistant cashier of
the State Savings Bank at Baxter,
Iowa. He succeeds Andrew H. Agena,
who resigned to take a similar posi
tion with the Peoples Trust and Sav
ings Bank at Indianola. Mr. Sturges
has taught commercial work the past
three years and has worked in the
First State Bank at Churdan the past
three summers.

gaging in the finance business at Carroll, Iowa. Mr. Butler was formerly
employed in the Lytton Savings Bank.
Calvin C. Wolf grew up in the banking
business, and his father, Alvin R.
Wolf, was in the banking business at
Lytton and Auburn, Iowa, for a num
ber of years.
The new officers of the bank are:
Alvin R. Wolf, president; John R.
Butler, Jr., vice president, and Calvin
C. Wolf, cashier. Mr. Lindenmeyer
will continue as assistant cashier for
a couple of months, after which he
will move to Washington state where
his children reside. This sale was
negotiated by the Bankers Service
Company, Des Moines, Iowa.

Advanced at Farley
J. L. Mahony, who has been with
the Farley State Bank, Farley, Iowa,
since 1916 and who held the office of
assistant cashier, was recently elected
to the office of vice president. John
J. Ramm, who has been vice president
for a number of years, still retains that
position. Mr. Mahony still holds the
position of assistant cashier in connec
tion wdth his new position.

With Des Moines Firm
Sumner M. Macomber, formerly with
Shuler Coal Company, is now associ
ated with Graefe and Company, Des
Moines, Iowa.
Mr. Macomber was graduated from
Yale in 1940 and served in the United
States Navy from graduation until Oc
tober, 1945.
Mr. Macomber is married and has
four children, including twin daugh
ters born in June, 1947.

Pilot Rock Plow Match

One of the most successful plowing
contests a n d demonstrations ever
staged was the annual Pilot Rock
Plowing Match held at Cherokee, Iowa,
last month when 13,000 people congre
gated there to watch the champions
go through their plowing paces.
A total of 49 entries from Iowa, Ne
braska and South Dakota were re
ceived by the committee in charge.
Winner of the terrace building match
West Chester Bank Sold
F.
M. Lindenmeyer, who as cashier was William Muecks, Hinton, who de
has guided the destiny of the West feated 11 other contestants.
Bankers in that territory have been
Chester Savings Bank of West Chester,
Iowa, for more than 20 years, has sold active in support of this project aimed
his stock along with that of Henry at soil conservation, especially R. E.
Witthoft and Irvin E. Coffey, repre Tool, executive vice president of the
senting controlling interest, to Calvin First National Bank in Le Mars, Iowa.
C. Wolf and John R. Butler, Jr., and
they assumed active management of New in Fort Dodge
the bank last month.
It is reported that the charter of
Mr. Wolf and Mr. Butler both served the Burnside Savings Bank, Burnside,
in the armed forces in World War II
Iowa, is being moved to Fort Dodge.
and after their return operated a gen The new bank in Fort Dodge will be
eral store at Lytton, Iowa, later en known as the Union Trust & Savings
N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

Iowa News

Bank, and an office of this bank will
be established in Burnside.
Dr. E. F. Beeh, Fort Dodge, is slated
for president of the new bank. A vice
president will be A. H. Johnson, farm
er near Fort Dodge, and vice president
and cashier will be 0. B. Lundgren,
who formerly was cashier of the bank
at Burnside. E. P. Gutz, Hampton, is
reported as an assistant cashier of
the new bank.

★

Named to Board
At the annual stockholders’ meeting
of the Farmers State Bank of Mar
cus, Iowa, John Brady, a stockholder
of the bank since its organization, was
elected to the board of directors.
The board voted to increase the
surplus of the bank, thereby bringing
the capital and surplus to $100,000,
keeping the bank in the honor roll

position of banks in the state of Iowa.
All other directors and all the offi
cers of the bank were re-elected at
the meeting.

Elect New Director
Dr. Harold G. Buck, Ames, Iowa,
dentist, was elected a member of the
board of directors of the College Sav
ings Bank at a meeting of the board
recently, it was announced by C. A.
Knudson, bamk president. Dr. Buck
will succeed the late David Edwards.

★

Resigns at Keota
H. A. Stowell has resigned as cashier
of the Security State Bank aJ Keota,
Iowa. He moved to Keota from Green
field in December of 1946 to become
cashier of the bank. Other officers of
the bank remain the same and no ap
pointment to fill the vacancy has been
made.

Our Own Golden Rule

Moves to Nebraska

It is OUR business to take care of YOUR business,

Edward Pressler, formerly cashier
of the Security State Bank of New
Hampton, Iowa, moved to Harvard,
Nebraska, with his family last month
where he has purchased controlling
interest in the Harvard State Bank.

just as you would do it if you were in our place.
That policy assures you of prompt, accurate attention
to your correspondent needs here at the First National
Bank in Sioux City. It is our own "Golden Rule" and
we want to share it with you, too.

Watch Plow Contest
A crowd of about 3,000 persons
watched the contour and terrace plow
ing contests at Otley, Iowa, last month,
which were sponsored by the Marion
County Bankers Association. Demon
strations of spray painting and air
plane spraying for grasshopper control
were also made.
Guests were Governor Robert D.
Blue and J. O. Christianson, superin
tendent of the agricultural school at
the University of Minnesota. J. R.
Drake, president of the Pella National
Bank, introduced the program and was
chairman of the arrangements com
mittee.

A. G. SAM, President
J. T. Grant, Vice President
H. H. Strifert, Assistant Cashier
J. R. Graning, Cashier
K. J. Shannon, Assistant Cashier
E. A. Johnson, Assistant Cashier
W. L. Temple, Assistant Cashier
J. Ford Wheeler, Auditor

'pâiét NATIONAL

Hold Turkey Dinner

BANK

The Farmers State Bank of Jewell,
Iowa, was host to bankers and bank
i mployes from banks of all other
towns of the county at a meeting of
the Hamilton County Bankers Associa
tion held in Jewell last month. The
meeting was held at the Strand Cafe
party room and was attended by 35
bankers of the county.
A turkey dinner was the feature of
the gathering, the first new-crop tur
key dinner of the season.

in SIOUX CITY

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

---------- ★

★

Did you know that our Cash Letter Policy not only
gives protection but enables you to cut operat
ing expenses substantially? Ask us for
details. You will not obligate
yourself.
F IR S T

N A T IO N A L

BANK

B U IL D IN G

N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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Federal Reserve Bank of St. Louis

1948

C H IC A G O

Scarborough & Company
Insurance Counselors to Banks
3,

IL L IN O IS

STATE

4325

PLEASE CALL ON US
FOR ANY
PERSONAL SERVICE
WE CAN OFFER
IN DES MOINES

VALLEY BANK AND TRU ST COMPANY
DE S M O I N E S

75th
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis

ANNIVERSARY
YEAR

N o r t h w e s t e r n Ban ke r, S e p t e m b e r ,

1948

Iowa

News

hura •Iunior H auliers f l a u

M O R E G RO U P S T U D Y C L A SSE S for bank employes and
junior officers were recommended by the Iowa Junior Bankers
Association last month as a progressive step in developing better
trained personnel in Iowa banks. At a joint meeting of the
Association and Des Moines A.I.B. officers at the Des Moines
Club, Christian Ries, Federal Reserve Bank o f Minneapolis and
a national A.I.B. officer, presented a summary o f the steps neces
sary to organize a study group. Favorable comment on initiat
ing more of these classes was expressed by the Council o f the
Iowa Junior Bankers Association as they voted to authorize
group chairmen to appoint an A.I.B. chairman in each county in
their respective groups.

Several of those attending the meeting in Des Moines last
month are shown above. In the picture at left, reading from
left to right, they are: Clarence R eib ert, Iowa-Des Moines Na
tional Bank, Des Moines, and associate councilman for Iowa

S ta d i/ C lasses

A.I.B.; John B. M onahan, assistant cashier Bankers Trust Com
pany, Des Moines, and president Des Moines chapter A.I.B.;
C hristian Ries, Federal Reserve Bank, Minneapolis, and mem
ber of the national A.I.B.’ s executive council, and C. D. Clausen,
assistant cashier Citizens National Bank, Boone, and president
Iowa Junior Bankers Association.
In the picture at right, reading left to right, are: R o y F ergu
son, Iowa-Des Moines National Bank and treasurer Des Moines
A.I.B.; Charles H. W a lcott, assistant cashier Security National
Bank, Sioux City, secretary of the Iowa Junior Bankers and
chairman of Group 1 of that group; A rn old Dressier, Central
National Bank, Des Moines, and first vice president Des Moines
A.I.B.; C. W . Fishbaugh, assistant cashier Security Trust and
Savings Bank, Shenandoah, and chairman Group 5, and Charles
H. B eck, assistant cashier Iowa State Bank, Morning Sun, chair
man Group 11.

our
em p h asis is on
SERVICE

w hen your customers have
business in Chicago

w liile some of our correspondent banks

It is our constant endeavor to go be

are larger institutions located in cities, it

yond routine, and to render a ’ ’plus” type

is also our privilege to serve m any pro

o f service which more than m eets the

gressive banks with customers residing

expectations of our correspondents and

mainly in rural districts.

their customers.

Regardless of the size or location of
your bank, the American National places

Your inquiries are invited regarding
any phase of this service.

special emphasis on assist
ing you to meet your custom
ers’ requirements. In every
instance we offer prompt,
experienced, interested co
operation that other hanks
have found of unusual value.

N o r t h w e s t e r n Banker, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

AMERICAN NATIONAL BANK
A N D TR U ST C O M P A N Y O F C H IC A G O
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

LASALLE

WASHINGTON

B a n k e rs h a v e p ro b le m s, too!
If it isn’t one thing, it’s another . . . what with the
uncertainty of the weather and its effect on crops . . .
new developments in production . . . the problem of
keeping up-to-date on a score of different fields of
business, commerce and agriculture . .. and the neverending problem of holding present business while
exploring new channels of activity . . . yes, bankers
have problems.
The Marquette of Minneapolis has solutions to
T H E

S T R O N G

F R I E N D

many of the problems that plague the independent
banker . . . and the know-how and enthusiasm to
handle new problems as they develop. Call on the
Marquette when you need help, we’re as near as your
telephone . . . or stop in for a visit the next time
you’re in Minneapolis.
RUSSELL L. STOTESBERY

President
DEP AR TM E N T OF B A N K S

CHARLES C. RIEGER

OTTO H. PREUS

Vice President

T H E

Assistant Vice President

I N D E P E N D E N T

MARQUETTE
517 M A R Q U E T T E

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Federal Reserve Bank of St. Louis

AVENUE

LYNN FULLER

Executive Vice President
AND BAN KERS

B A N K E R

BANK
MINNEAPOLIS

MINNESOTA

M EM BER FED ERAL DEPOSIT IN SU RA N CE C O R PO R A TIO N
N o r t h w e s t e r n Banke r,

September, 1948

I o w a News

Resigns at Radcliffe
James W m . Ryan, who has been
cashier of the Security State Bank at
Radcliffe, Iowa, since February, 1942,
has accepted a position with the state
tax department. He planned to begin
his work with the state last month.

Ed Kaufmann
Ed Kaufmann, 45, vice president and
a director of Quail & Company, in
vestment securities dealers in Dav
enport, Iowa, died last month in the
University Hospital, Iowa City.
A life resident of Davenport, Mr.
Kaufmann was born February 1, 1903.
He attended the city schools and later

graduated from the State University
of Iowa, where he was affiliated with
the Kappa
Sigma fraternity.
He
joined Quail & Company in 1926.

president also. Operation of the bank
will be continued in local hands and
there is no change in its officers, di
rectors and personnel.

Buy Bank Control

On Davenport Board

Purchase of a majority interest of
the First Security Bank and Trust
Company of Charles City, Iowa, by
four officials of the bank was an
nounced last month. E. L. W alleser,
president of the bank, said that M. J.
Klaus, vice president and trust offi
cer; W . A. Herbrechtsmej'er, cashier;
R. W . Zastrow, a director, and he had
acquired the interest from H. Pd. Ellis
and R. W . Ellis. R. YV. Ellis is a vice

Frank H. Schierbrock, head of
Schierbrock Motors, Inc., in Davenport
and Rock Island, has been elected a
director of the First Trust & Savings
Bank of Davenport to fill a vacancy
created by the death of Frank Morency. This gives the First Trust board
a full authorized roll of 13 members.
Mr. Schierbrock was associated with
Charles Shuler, Jr., Leo J. Capen, W a l
ter W . Paul and Otto Nobis in the
recent purchase of the George M.
Bechtel stock in the bank, and those
men who were named to the board
recently.

Elected Vice President
T. A. Nixon was elected vice presi
dent of the Pocahontas State Bank
at Pocahontas, Iowa, at the annual
stockholders’ meeting held there re
cently. W . F. Rich of Ft. Dodge was
re-elected president. Other directors
include L. S. Homan and N. B. Homan
of Remsen, and James Donahue of
Pocahontas.
Bank personnel include J. J. DeLay, cashier; Loren Oleson, assistant
cashier, and Bonalee Peterson and
Robert Lorge, tellers.

S io u x 1 'hi§ X vu's
ARL L. FREDRICKSEN, presi

THE DROVERS “ YELLOW BOY
ADVICE IS W E L L K N O W N
TO BANKERS WHOSE CUS
TOMERS SHIP LIVESTOCK TO
CHICAGO. IT IS THE SYMBOL
OF FAST, FRIENDLY SERVICE
IN COLLECTING LIVESTOCK

SFIDYERS NATIONAL BANK
□ ROVERS TRUST & SAVINGS BANK
U N I O N

S T O C K

Y A R D S ,

C H I C A G O

dent of the, Live Stock National
Bank at Sioux City, returned from
a “flying” 10-day trip into western
South Dakota and Nebraska last
month.
A fter calling on 32 banks,
visiting with officers in these institu
tions and making personal observa
tions along the trip, he reports that
crop conditions are exceptionally good
with hail damage in a few places, but
the over-all crop situation is excellent.
He also reported that an upward trend
in deposits was expected by bankers
after harvesting of crops and new ship
ments of livestock early this month to
the live stock centers.

John Scott, Jr., president of the
Morningside State Bank of Sioux City,
left for the east last month to spend a
month with his son, Clark, in New
York City.

Members, Federal Deposit Insurance Corporation

N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

Clifford L. Adams, assistant vice
president of the Live Stock National
Bank of Sioux City, is taking over the
duties of William G. Nelson who left
the Live Stock National last month
to go to Hastings, Nebraska, where he
is now vice president. Mr. Adam s will
serve as a loaning officer at the bank.

Iow a N ew s

P r o m o te d

is legal counsel and a director of the
bank; with Mrs. Kenneth Kautz, a
home economics major at Iowa State,
whose husband is manager of the
bank’s agricultural department; and
with Mrs. Lester McCleary, who for
a number of years was an office man
ager for her father, a contractor and
lumber dealer.
It was the studied
opinion of these people that such a
project was needed in Estherville,
would further round out the bank’s
facilities.
Finding quarters for the new de
partment was easy. W hile completely
modern in every respect, the Iowa
Trust and Savings Bank, like many

of the older bank buildings, has a bal
cony about twelve feet wide extending
the width of the lobby at the rear,
with a broad stairway giving access
to it from the side opposite the cages.
W ith a high substantial railing on the
lobby side, and not used for any other
purpose, the balcony was a perfect
spot. W ith the application of green
paint in pastel shades to the floor and
walls, and a number of pieces of fur
niture, the department was ready for
occupancy.
Facilities of the Home Planning De
partment of the Iowa Trust and Sav
ings Bank are built around several
large bocks of complete architects’

H E N R Y K . L A R S E N (above) was
elected assistant cashier of the Toy
National Bank o f Sioux City at a
recent directors’ meeting. He will
be assistant manager o f the personal
loan department.

Bank clearings in Sioux City in the
first seven months of 1948 have ex
ceeded 1947 figures for the same period
by $21,767,636, according to the Sioux-

City

Clearing

House

Association.

Clearings through July 31st were
$413,627,259, compared with $391,859,623 for 1947. July 1948 totals were
nearly $60,000,000 for an increase of
over $3,000,000.

Stanley YV. Evans, field representa
tive of the Live Stock National Bank
at Sioux City, attended the Central
States Conference School of Banking
at the University of W isconsin. Before
going to the two weeks’ school at Madi
son, Mr. Evans spent two weeks at the
Iowa National Guard encampment at
Fort Riley, Kansas. He is a major in
the Iowa Guard and is finance officer
for the 34th Division.
William G. Schenk, cashier of the
Live Stock National Bank at Sioux
City, returned to his home from a
Sioux City hospital last month and is
reported to be recuperating satisfac
torily.— The End.

BANK

HELPS WITH
PLANNING

ways to share their excess cattle loans with the Commerce.
This 400-million-dollar bank is always in a preferred position
to provide quick, efficient, cheerful cooperation for mutual
benefit. We have a representative in the territory who devotes
his entire time to cattle loans.

HOME

(Continued from page 23)
dising and home building. She was
immediately enthusiastic. He talked
with Mrs. Leo Fitzgibbons, who ma
jored in home economics at the Uni
versity of Iowa, and whose husband

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Federal Reserve Bank of St. Louis

For many years banks have found it advantageous in many

(omnierce|hist (ompany
GofUtoi rf-uHcLl ß'X.oeexL 21 M illion ubolla'U.

KANSAS CITY'S LARGEST BANK
Established I8b5

ÍnSURAfíe E OFU*ORAHO iN
N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

Iow a New s

drawings and model homes, supplied
by B e t t e r H o m e s and G ard en s, a mag
azine published in Bes Moines. The
two model homes are fashioned of
cardboard, in actual colors, and are
quite complete as to detail.
W hile
there are numerous plans offered in
the several architects’ books, a new
suggestion is made each month, and
complete plans are furnished to the
Home Planning Department. Also in
cluded in the B e t t e r H o m e s an d G ar
d en s service are blueprints, a list of
needed materials, and all necessary
specifications.

IOWA •LITHOGRAPHING ■COAAPANY
FOUNDED BY GEORGE H. RAGSDALE •

• EDWIN G. RAGSDAUE * SECRETARY

515 TWENTY EIGHTH STREET

DES • M O I N E S

Q U A L I T Y - E X P E R I E N C E

• S E R V I C E

In the Department is a complete
library of home building and planning
books. A wall rack contains a number
of current periodicals relating to
homes, and a large floor rack is filled
with pamphlets and free literature
covering almost all phases of building
and materials.
On display also are
samples of building materials, supplied
by local dealers.
The department is arranged on a
broader scale than just home building
and planning. There is ample space
on the balcony to set up model rooms,
full size, furniture for which is sup
plied by local furniture houses.
In
formation is available on interior
decorating, such as wall and floor
coverings, draperies and curtains, with
appropriate color schemes suggested.
Mrs. K. J. McDonald is in charge of
the Home Planning Department of the
Iowa Trust and Savings Bank, assisted
1 v Mrs. Fitzgibbons, Mrs. Kautz, and
Mrs. McCleary.
The department is
officially open two hours a day on
three days each week, with the per
sonnel on duty Tuesday, Thursday,
and Saturday. On the other days cus
tomers of the bank, and visitors, are
free to visit the department at any
time during banking hours.
The Home Planning Department of

5 MINUTES FROM DOWNTOWN

At the Chelsea, every guest room is a large
outside room, with its own private bath. All
are beautifully decorated and designed for
comfort. A truly outstanding downtown hotel
perfect for those who wish to be in mid-city,
and yet prefer a quiet home-like atmosphere.
The Chelsea is near—Radio Center, Huntington Library, Forest Lawn Memorial Park,
China City, Movie Studios, Beaches.
Rates from $3.00

the bank is publicized through both
direct mail and radio. The bank has
a list of 600 names for direct mail pur
poses, and to this list have been mailed
various pamphlets and booklets, many
of which have been supplied by the
Small Homes Council of the Univer
sity of Illinois. All mailings of course
cover various phases of home building.
Over its local radio station KIDC
the bank for some time has sponsored
a weekly fifteen-minute program titled
“Evening Serenade.” The basis of the
program is music, with spot announce
ments of the bank’s services not ex
ceeding 5 minutes, covering the agri
cultural department, other depart
ments of general banking, and of
course, now the Home Planning De
partment. Mrs. McDonald writes the
script when her department is on the
air, and hers and Mrs. McCleary’s are
the voices heard.
Since many of the building plans
are for farm homes, the Department
has worked closely with 4-H and Farm
Bureau members to interest them in
using the services for any building or
remodeling contemplated. The W o m
en’s Club of Estherville staged a tea
for farm women, which featured a
home planning program.
After a few months over a year of
operation, Mr. McDonald figures his
Home Planning Department has cost
the bank $1,000 maintenance expense
the first year.
In this amount is
charged all items that relate to the
Department-— cost of the B e t t e r H o m e s
and G ard en s service, subscriptions to
a dozen home magazines, share of
direct mail and newspaper advertis
ing, and share of radio time used. To
this is added the salaries of the De
partment personnel, who are paid at
the same hourly rate as the tellers of
the bank.
Mr. McDonald considers his Home
Planning
Department
well
worth
while. It doesn’t take up much space,
and its arrangement could be adapted
to many banks.
It has helped the
Iowa Trust and Savings Bank acquire
a select list of home loans, and has
created a tremendous amount of good
will in the community.— The End.

NEWS AND VIEWS
(Continued from page 50)

Milton Tootle, Jr., son of Milton
Tootle, president of the Tootle-Lacy
National Bank of St. Joseph, Missouri,
has been elected an assistant cashier
and will follow in the footsteps of his
illustrious family of bankers.
Also, E. H. Schropp and E. L. Crume
have been promoted to the positions
of assistant vice presidents of the
bank. These men were formerly as
sistant cashiers of their institution.
N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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Federal Reserve Bank of St. Louis

1948

Iow a N e w s

F ish erm a n

F IS H ST O R Y No. 1 was entered
in the vacation log book o f Erw in
W . Jones, vice president o f the IowaDes Moines National Bank of Des
Moines, recently when he went on
his first fishing expedition and came
back with the above prize catch.
Mr. Jones is shown holding an eightpound Northern pike he snagged at
Perrault Lake in northwestern On
tario on his initial fishing venture.

Ben I)u Bois, secretary of the Inde
pendent Bankers Association of Sauk
Centre, Minnesota, reports that their
organization now has a membership
of 2,280 scattered through 11 Federal
Reserve Districts.
In commenting on future legislation,
Mr. Du Bois said, “The independent
bankers of the country are realizing
better than ever before that they must
join together in opposition to banking
concentration if independent banking
is to maintain its status. W h ile the
Tobey-W olcott bill failed of passage,
it was successful in visualizing the
issue and in the next session of the
Congress more independent bankers

will be rallying to the support of a bill
that will regulate the bank holding
company.”
Frank Warner, secretary of the
Iowa Bankers Association, has pre
sented a most complete “Statewide
Survey of Rental Fees” and other re
lated data in respect to safe deposit
box business of Iowa banks.
Eight major questions were asked,
two of which inquiring as to whether
the banks’ safe deposit vaults were
burglar proof, and whether they car
ried insurance on their safe deposit
boxes.
The size of boxes was given, to
gether with the fees charged, also
population of the various towns from
which banks had sent in their reports.
This is a most detailed and worth
while survey and reflects as always
the meticulous care which Secretary
Warner uses in the preparation of all
of his very helpful surveys for Iowa
banks.
An
interesting
comparison
was
made by the Cleveland Trust Company
of the number of businesses in the
United States which are now at an all
time high.
“Along with its human

Cen

tral

population, the nation’s business pop
ulation has been increasing rapidly.
The number of operating businesses
made a new high record of 3,848,000 at
the beginning of 1948, according to
figures compiled by the Department
of Commerce. This total may seem
surprisingly large in view of the em
phasis frequently placed on the ‘big
ness’ of American business. It is true

that large concerns conduct a substan
tial part of the nation’s trade and in
dustry. Yet small business is more
closely woven into our economy than
is sometimes realized—in fact if the
above figure is divided into our total
population, we have approximately
one business for every 38 inhabitants.
“Probably almost half of these busi
nesses are very small indeed, being
operated by one individual or family
and having no paid employes.”

LEGAL QUESTIONS
(Continued from page 59)
ment, it is presumed at law, where the
will cannot be found after his death,
that such person destroyed the will
with the intention of revoking it.
Under this rule, the law would hold

Na t io n a l B

a n k

IN C H I C A G O
ROOSEVELT R O A D AT HALSTED STREET
Member Federal Deposit Insurance Corporation

SIOUX

•

Member Federal Reserve System

CITY

A BANK FOR A BANK

T H E T O Y N A T IO N A L B A N K

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Federal Reserve Bank of St. Louis

M em b er Federal D eposit Insurance Corporation
N o r t h w e s t e r n Banke r, S e p t e m b e r ,

1948

70
that Benton died without a will be
cause of the presumption that since it
could not be found, he revoked the
document by destroying it.

Suppose, in the preceding ques
tion, facts had been developed that
showed that there had been no intent
to revoke the will and that the reason
that the will could not be produced
was that it had been destroyed by a
fire at Benton’s house which had been
caused because it was struck by light
ning or some other like calamity.
Suppose further that the contents of
the will, its execution, and the other
incidents thereto were clearly proven
by reference to a copy retained by
Benton’s attorney, and otherwise.
Would Benton, nevertheless, be held
to have died intestate, that is, as
though he had left no will?
No. It is perfectly in order, in ap
propriate cases and with proper evi
dence, to establish lost wills and give
them full force and effect. The legal
presumption that a will has been re
voked which arises when it cannot be
found may be overcome by substantial
evidence warranting a holding to that
effect. Such evidence is quite often

difficult to obtain, however, and the
practical w ay to avoid involvem ent in
those matters is to see that such an
important paper is kept in a safe de
posit box.— The End.

Named Trustee
The United States National Bank of
Omaha has been designated as trustee
for the proposed $60,000,000 debenture
issue of the Northwestern Bell Tele
phone Company, according to an
nouncement of Russell J. Hopley,
president of the ’phone firm.
Mr. Hopley said directors of the
company, at a meeting earlier this
month, designated the trustee and au
thorized necessary features of the pro
posed issue preliminary to submitting
it to state and federal regulatory au
thorities for approval.
Original announcement of the issue,
made on July 30th, stated that pro
ceeds from the sale of the issue would
be used to retire indebtedness incurred
for improvements and additions to the
Northwestern Bell Company’s tele
phone plant.
Mr. Hopley, who is temporarily serv
ing as Director of Civil Defense Plan
ning under Secretary Forrestal, came
to Omaha from W ashington for the
board meeting.

Dogs Bite Man

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Des Moines 14, Iowa
Kansas City 8, Mo.

N o r t h w e s t e r n Ban ke r, S e p t e m b e r , 1948

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Federal Reserve Bank of St. Louis

Starting with the Bankers Trust
Company as a bookkeeper in 1923, Mr.
Ellison later became receiving teller,
was advanced to assistant cashier in
1928, and was named assistant vice
president last year.

K earn ey'W orn all, vice president of
The City National Bank and Trust
Company,
Kansas City,
Missouri,
recently
wore
a
pair
of
band
aged hands as testimony of the neigh
borliness and loyalty of two dogs.
W h en W ornall was chastising his own
dog for a breach of canine etiquette,
his neighbor’s dog, seeing the punish
ment, ran over to assist his pal and
nipped Kearney severely. W h ile Kear
ney was fending off the neighbor dog,
his own pet came to the rescue of his
friend and nipped Kearney also. Now
Kearney is torn between admiration
of the loyalty the dogs exhibited to
ward one another and the ingratitude
of his own animal’s biting the hand
that feeds him.

Dividend
Irving Trust Company has an
nounced that its board of directors
has declared a quarterly dividend of
20 cents per share on its capital stock,
par $10, payable October 1, 1948, to
stockholders of record „at the close of
business September 7, 1948.

1949 Convention
Dates for the 47th Annual Conven
tion of the American Institute of
Banking, which will be held next year
in Portland, Oregon, have been defi
nitely set for May 30 through June 3,
it was announced by Pierre N. Hauser,
national president of the institute.
Mr. Hauser is vice president of The
First W isconsin National Bank, Mil
waukee, Wisconsin.
The invitation to hold the 1949 con
vention in Portland was officially ex
tended and accepted at this year’s con
vention in Buffalo, New York. This
will be the second time Portland has
been host to the convention, the first
having been in 1922.
The general chairman of the con
vention committee is C. B. Stephen-

MERCHANTS
M U T U A L

BONDING
COMPANY
Incorporated 1933

S A V IN G S

Home Office
& L O A N B U IL D IN G

Des Moines, Iowa

•

Two Vice Presidents

This is Iowa’s oldest surety company.

Directors of California Bank, Los
Angeles, have elected John S. Hart
well and Darwin A. Holway assistant
vice presidents, Frank L. King, presi
dent, announced.

A progressive company with experi
enced, conservative management.

Now a Vice President
A recent promotion in the Bankers
Trust Company, Des Moines, is that
of W illiam Ellison to vice president.
Mr. Ellison, who formerly was assist
ant vice president, is connected with
the commercial loan department of
the bank.

We are proud of our two hundred
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your hank.

0
E. H. WARNER
Secretary and M anager

W. W. WARNER
Assistant Secretary

Iow a N ew s

son,
vice president of The First
National Bank of Portland.
C. C.
Clarkson, vice president of The First
National Bank of Portland, Sixth and
Morrison Branch; Ralph Thom, as
sistant manager of The Bank of Cali
fornia N. A .; and Charles R. Harding,
vice president of The United States
National Bank of Portland, will serve
as vice chairmen.
These last three
are past presidents of the Portland
Chapter of the Institute.
Convention headquarters will be
maintained in Hotel Multnomah.

Investment Field Day
The date for the Iowa Investment
Bankers’ Annual Field Day is Thurs
day, September 23rd, to be held in
Des Moines.
Overnight headquarters for those in
terested is the Hotel Savery. The fes
tivities will start with a breakfast at
the Savery at 8:30 in the morning.
Then t*he group will go to the H ype
rion Field Club north of Des Moines,
where golf and other forms of amuse
ment will be the order of the day.
Lunch and dinner will both be served
at the Hyperion.
There will be the usual wealth of
door prizes, and sweepstakes tickets
are on sale at $1 each. The registra
tion fee is $15 for members, and $20
for guests. Hotel reservations can be
made direct with the Hotel Savery,
and reservations for the Field Day
with Harry W estphal at the Iowa-Des
Moines National Bank.

Bankers:
W e specialize in
writing

Automobile
and

Fire insurance
it

Robert Morris Convention
The
annual convention
of the
Robert Morris Associates will be held
in St. Louis, Missouri, October 24-27,
1948.
The executive committee for
the meeting consists of the following
bankers: Albert Wagenfuehr, execu
tive vice president, The Boatmen’s Na
tional Bank of St. Louis as chairman;
F. Guy Hitt, first vice president, The
Federal Reserve Bank of St. Louis as
vice chairman; Harvey W elch, vice
president, First National Bank in St.
Louis; W m . Schroer, vice president,
Mississippi Valley Trust Co.; W alter
L. Rehfeld, vice president, MercantileCommerce Bank and Trust Company;
and Harold Keller, president, Mound
City Trust Company.
The general
chairman is Eugene E. Fineke, as
sistant vice president of the Mercan
tile-Commerce Bank and Trust Com
pany.
The program committee has
announced one of the principal speak
ers will be Marquis W . Childs, wellknown W ashington correspondent and
writer. Headquarters for the confer
ence will be at Hotel Statler.
Registration will begin on Sunday
morning, October 24.

Strengthen Your
Doubtful Risks
With Lawrence
Receipts
Judged by its prevailing risk
criterion, a bank’s portfolio
contains many loans on open
account which may well be
placed on a secured basis.
Lawrence warehouse receipts
issued on the borrower’s
inventory in such cases protect *
the lender with collateral
which is fundamentally sound.
* Lawrence receipt holders are pro
tected by the strongest and broadest
fidelity bond and legal liability insur
ance in the field warehouse industry.
Thus Lawrence can always discharge
its liabilities in full.

Civic Positions
Bank of America officials recently
appointed to civic positions include:
Phil Neal, manager of La Jolla
branch, elected president of the La
Jolla Chamber of Commerce; Graydon Hoffman, vice president and man
ager of the San Diego Main Office,
appointed general chairman of the
Community Chest’s 1948 Red Feather
campaign in San Diego; and Julian R.
Davis, vice president and manager of
the Long Beach Main Office, appointed
chairman of the Advance Gifts A dvi
sory Committee for the 1948-49 Com
munity Chest campaign in Long
Beach.

Use this new Lawrence book to pre
pare the way for secured credit with
customers for whom secured credit is
indicated. Write us for free copies.

I aw ren ce W a reh o u se
fOMPANY
N ationw ide Field W arehousing

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
Mt. Pleasant, Iowa
E. A. HAYE S, President
O. T. WI LSON, Secretary
Established 1929

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

DIVISION
CAM F R A N C IS C O II, C A LIF .
3 7 Drumm S t.

OFFICES :
N EW YO RK 5, N. Y .
7 2 W a ll St.

C H IC A G O 2 , ILL.
I N . La S a lle St.
>ei A n g ele s • Boston • P h ila d e lp h ia • Pittsburgh • Bu ffalo
C leveland • C in cin nati • K a n s a s C ity • St. Louis • A tlan ta
Des M oines • C h a rlo tte • Ja ck s o n v ille • N e w O rle a n s
Houston • D a lla s • D en ver • Phoenix • Po rtland • S e a ttle
S p o ka n e • Stockton • Fresno • W ashing to n , D. C .
M a n ila , P. I.

N o r t h w e s t e r n Ban ke r. S e p t e m b e r .

1948

Iow a N ew s

FOR SALE— Choice of one of the fol
lowing machines: National Cash Register
statement and ledger posting machine,
one year old. Burroughs 17-bank posting
machine, one year old.
Or Burroughs
17-bank posting machine 7 years old.
Each machine in top condition and carry
ing complete service. Available imme
diately. Write M. F. K., care Northwest
ern Banker, 527 7th St., Des Moines, Iowa.

HOLLINBECK
Stamp and Coin Co.
Royal Union Bldg.

Des Moines
Appraisals for tax and
estate purposes

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

DES M OINES BUILDING-LOAN &
SAYINGS ASSOCIATION
Oldest in Des Moines
210 6th Ave.

Dial 4-7119

E L M E R E. M IL L E R
Pres, and Sec.
FO R

YOUR

H U B E R T E . JA M E S
A sst. Sec.

E N JO YM E N T

. . .

L is te n t o the
“ W ORLD
K R N T , 1350 KC

M U SIC ”

1 to 1 :30 p.m. Sundays

DEAR EDITOR
(Continued from page 15)
it has been mailed out by you as a joke, I
would like to reply to it in a similar vein.
“ First, E want to compliment you on the
wonderful push that items such as this will
give the cause of Communism in this coun
try. A country which was built on thrift
and individual initiative but which today
has declined to such an extent that ‘the
majority o f the individuals, who looked at
the houses that you are pushing, ‘cannot
raise the necessary down payment for con
struction loans, and many haven’t even land
purchase money.’ It is certainly a terrible
thing in this time when we have the greatest
employment and highest wages in the his
tory of our country, that hundreds of thou
sands of individuals are in such a position.
And I agree with you that something should
be done about it immediately.
“ I f the bankers of this country won’t
make loans to such unthrifty individuals,
broad government help may well be the only
way out. For, if the bankers o f this coun
try won’t take the money o f their depositors
and put it into inflatedly priced houses, or
lend it to individuals who won’t be able to
pay it back when the next depression hits,
then the Government must do it. Yes, Sir!
the Government must take the money that
is paid to it in taxes by hard-working indi
viduals, and spread it around a bit. After
all it can always levy more taxes.
“ And, as there is no depression in sight,
the next best thing to do if we really want
Communism— and it looks like Look does—
is to push the Government debt out of sight,
through financing o f such projects; increase
the taxes to pay for them and completely
break down the financial structure o f the
country by belittling its banks and bankers.
I always thought that a bank was in business
to lend money on good security to individuals
with a sound credit standing—at least that

TALLMAN SHOP
Banking Fixtures
and

Store Fixtures
Phone 24
CLARION. IO W A

WiR.J. FLYNN.Pres.
\

D.L.DUNGAN. Secy.75

S in ce

1907

Adverasinq Co.
INC.

Put this on
your list of
things-to-do
the next time
you're in
Des Moines!
ADOBBS Fall
Felt from this
Dobbs Store.

'S horim acL aie

J
k ---------------------------------- 4

{

DES

MOI N E S

N o r t h w e s t e r n B a n k e r , S e p t e m b e r , 1948

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

"Express Our Appreciation"
“ Caught up on some of my reading in the
quiet of my own home last evening and
hasten to express our appreciation for your
most kind expression from ‘Across the Desk
from the Publisher’ addressed to Harold R.
Dietemeyer, Chairman of our Nebraska
Bank Management Committee.
“ Your N orthw estern B a n k e r statistical
department did a fine job of extending the
percentages pertaining to certain portions
of each size group totals which adds a great
deal to the information it was intended
should be included in the survey.”
Carl G. Swanson, Secretary
Nebraska Bankers Associa
tion, Omaha, Nebraska.

"Congratulate you"
“ The picture of your good-looking daugh
ter-in-law and your son in the -July issue,
with the announcement of their wedding, is
very attractive. I congratulate you upon
this important family event.
“ It doesn’t seem possible that a man of
your youth could have a son old enough
to be married. Yet it must be, because
whatever is printed in the N orthw estern
B an k er I accept as gospel, as do the other
readers.”
Joseph Bame, Manager Pub
lic Relations Dept., Commer
cial National Bank <$• Trust
Co., New York, N. Y.

"The Northwestern Banker Helps"
“ Thank goodness we have the N orth
B an k er staff to help us over the
rough spots. The material contained in and
accompanying your letter was exactly what
we needed. Thanks again for your grand
cooperation and assistance.”
Gordon M. Malen, First Na
tional Bank o f Minneapolis.
western

"Good Reading"
“ The

fy i
'

was what I hoped was the picture when I
became a bank depositor— but I «an see
from your statement that it is engaged to
day in keeping money out o f circulation and
thus causing a housing shortage.
“ And, by the way, I have been looking at
a new car and a new television set lately,
and I wish you would arrange to have the
Government start producing those things
too, for I am sure that it would do it much
cheaper than private industry, as it has no
taxes to pay.
“ Broad government help is the solution
to all of our problems. Broad government
help to every individual who wants a house,
a car, a radio, a television set, whether he
can afford it or not. For, with the Govern
ment producing everything, everything will
be much cheaper.
“ In fact all that we will have to pay is the
FREEDOM which men have fought and died
for for hundreds of years.”

Frankel’s
DES MOINES

editorials in the N orthwestern
B anker would make good reading for every
American citizen. I enjoy each issue of the
N orthw estern B an k e r .”

A. J. Cray, President E x
change State Bank, Lime
Springs, Iowa.

Iow a New s

C O N V E N T IO N S
September 22-24, National Association
of Supervisors of State Banks,
Annual Meeting, Louisville, Ken
tucky, Hotel Brown.
September 22-24, Mortgage Bankers
Association, 35th Annual Conven
tion, New York City, Hotel Com
modore.
September 24-26, Association of Bank
Women, Annual Convention, De
troit, Hotel Fort Shelby.
September 26-29, American Bankers
Association, Annual Convention,
Detroit.
October 10-13, 24th Annual Conven
tion, National Association of Bank
Auditors and Comptrollers, At
lanta, Georgia, Ansley Hotel.
October 24-27, Annual Convention
Iowa Bankers Association, Des
Moines, Hotel Fort Des Moines.
November 4-5, A.B.A. Mid-Continent
Trust Conference, Chicago.
November 10-11, Nebraska Bankers
Association, Annual Convention,
Omaha, Hotel Fontenelle.
November 29-December 2, Financial
Public Relations Association, An
nual Convention, H o lly w o o d ,
Florida, Hollywood Beach Hotel.
December 6-10, Annual Meeting, In
vestment Bankers Association of
America, H o lly w o o d , Florida,
Hollywood Beach Hotel.

IN D E X OF
A D V E R T IS E R S

Old P a p e r M o n e y H old s
In te r e s ts fo r C ollectors
Wildcat Notes and Reddog Currency Prove Intriguing
H E hobby of collecting obsolete
paper money is one of the modern
sidelines of the ancient hobby of coin
collecting. It is less than a century
old. The most popular field is that
known as “broken bank notes.” This
term indicates notes of banks, both
state and private, that have failed be
tween 1790 and 1864. Their currency
is often called “wildcat” or “reddog”
currency.
Some of these old bills, which are
unredeemable at banks, have unheard
of values among collectors. Of espe
cial interest are the early notes bear
ing the signatures of the signers of the
Declaration of Independence.
Such
notes are in much demand.
The notes issued by the Kirtland
Safety Society Bank of Kirtland, Ohio,

are also valuable on account of the
signatures they bear. They are signed
by the cashier, J. Smith, Jr., and this
particular J. Smith was none other
than the Joseph Smith who subse
quently founded the Mormon Church.
The notes issued during the presi
dency of W ashington are always
sought for, as also are those which
came from the presses of Benjamin
Franklin and Paul Revere.
The majority of old bank notes were
printed from engraved copper plates.
The engraving was done by first-class
artists of the period so that the vig
nettes on the bills are an excellent
study of the art of those early days.—
By Stuart Mosher, Editor of T h e N u
m ism a tist.

F ir s t N a tio n a l B a n k — C h ic a g o ....................... 13
F ir s t N a tio n a l B a n k — L in c o ln ..........................58
F ir s t N a tio n a l B a n k — O m a h a ............................ 59
F ir s t N a tio n a l B a n k — St. J o s e p h .....................54
F ir s t N a tio n a l B a n k — S io u x C i t y .................. 62
F ir s t W is c o n s in N a tio n a l B a n k ..................... .44
F r a n k e l C lo th in g C o m p a n y .............................. 72

N a tio n a l B a n k o f S ou th D a k o t a .....................49
N a tio n a l C ash R e g is t e r C o m p a n y ................. 9
N a tio n a l C ity B a n k o f N e w Y o r k .................. 14
N e w Y o r k T r u s t C o m p a n y .................................12
N o r th e rn T r u s t C o m p a n y ................................... 47
N o r th w e s t S e c u rity N a tio n a l B a n k ..............50

G
G ra e fe an d C o m p a n y .............................................. 39

O m ah a N a tio n a l B a n k ......................................... 27

P o lic y h o ld e rs N a tio n a l L ife In su ra n c e
C o m p a n y ..................................................................42

SEPTEMBER, 1948
A

A lle n W a le s Adding- M ach in e C o rp ................20
A llie d M u tu a l C a su a lty C o m p a n y .................. 43
A lly n , A . C., and C o m p a n y ....................................39
A m e ric a n E x p r e s s C o m p a n y ...............................33
A m e r ic a n N a tio n a l B a n k and T r u s t C o .. .64

P
H a ls e y , S tu a rt and C o m p a n y , In c .................. 38
H a r r is T r u s t and S a v in g s B a n k ..................... 36
H o llin b e c k S tam p and Coin C o m p a n y . . . .72
H o m e In s u ra n c e C o m p a n y ................................ 7
H u n tin g d o n B a n k B o o k C o m p a n y ................ 34

B a n k o f A m e r i c a .......................................................35
B a n k e r s S e rv ice C o m p a n y , In c .. . ...................32
B a n k e r s T r u s t C o m p a n y — D e s M o in e s . . .75
B a n k s, W ill ia m H ., In c .......................................... 40
C
C e n tra l H a n o v e r B a n k and T r u s t C o ......... 6
C en tra] N a tio n a l B a n k in C h ic a g o ................69
C e n tra l N a tio n a l B a n k and T r u s t Co......... 19
C e n tra l S ta te s M u tu a l In su ra n c e A s s n .. . .71
C h ase N a tio n a l B a n k ............................................ 8
C h e lse a H o t e l .............................................................. 68
C ity N a tio n a l B a n k and T r u s t C o m p a n y — C h i c a g o ........................................................................ 56
C ity N a tio n a l B a n k and T r u s t C o m p a n y —
K a n s a s C i t y .............................................................. 57
C o m m e rc e T r u s t C o m p a n y ................................. 67
C o n tin e n ta l Illin o is N a tio n a l B a n k and
T r u s t C o m p a n y .................................................... 4
C o n tin e n ta l N a tio n a l B a n k — L in c o ln . . . . 56

1)
D a v en p o rt, F . E . and C o m p a n y ................ 5 7-72
D e -L u x e C h eck P rin te rs, In c .............................. 42
D e s M o in e s B u ild in g -L o a n and S a v in g s
A s s o c ia tio n .............................................................. 72
D ie b o ld , In c .................................................................... 40
D r o v e r s N a tio n a l B a n k ........................................ 66

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

I n t e r -S t a t e N a tio n a l B a n k .................................59
lo w a -D e s M oin e s N a tio n a l B a n k .................. 76
Io w a L ith o g r a p h in g C o m p a n y ..........................68
I r v in g T r u s t C o m p a n y ......................................... 5

K
K o c h B r o t h e r s .......................................................... 71

L
L a M o n te , G e o rg e an d S o n .................................. 3
L a w r e n c e W a r e h o u s e C o m p a n y .....................71
L e s s in g A d v e r t is in g C o m p a n y ..........................72
L iv e S to c k N a tio n a l B a n k — C h ic a g o ........... 29
L iv e S to c k N a tio n a l B a n k — O m a h a ..............60
L iv e S to c k N a tio n a l B a n k — -Sioux C i t y . . .48

R
R e m in g to n R an d , In c ...............................................10
R o llin s , R ic h a rd R ., In c ........................................38
R o y a l B a n k o f C a n a d a .......................................... 40
S

St. P a u l T e r m in a l W a r e h o u s e C o m p a n y . .32
S c a rb o ro u g h an d C o m p a n y ................. 4 1 -5 3 -6 2
S ta te A u to m o b ile In su ra n c e A s s o c ia tio n . 43
S to c k Y a r d s N a tio n a l B a n k — O m a h a ..........55
T

T a llm a n W o o d & E le c tr ic S h o p ....................... 72
T e n sio n E n v e lo p e C o r p o r a tio n ....................... 70
T o y N a tio n a l B a n k .................................................. 69
IT
U n ite d S ta te s N a tio n a l B a n k — - O m a h a . ..52

v
M

V a lle y B a n k and T r u s t C o m p a n y ................. 63

M a n u fa c tu r e r s T r u s t C o m p a n y ....................... 11
M a rq u e tte N a tio n a l B a n k ................................. 65
M e rc h a n ts M u tu a l B o n d in g C o m p a n y . . . .70
M e rc h a n ts N a tio n a l B a n k .................................. 2
M in n e s o ta C o m m e rc ia l M e n ’s A s s n ............... 46
M ississ ip p i V a lle y T r u s t C o m p a n y ..............34
M odern F ix tu r e C o m p a n y ................................... 54

W a lt e r s , C h a rle s E ., C o m p a n y ................. , . .56
W e s s lin g S e r v i c e s ........................................... ..
31
W e s t e r n M u tu a l F ire In su ra n c e C o .. . . . .4 2
W h e e lo c k & C u m m in s .........................................39

Northwestern Ban ke r, S e p t e m b e r , 1948

In the
D IR E C T O R ’ S
A IM
d mi 1H
H
H ■
In Mourning

Curiosity

Bi ief Career

Bellhop (after ten m inutes): Did
you ring, sir?
Man: No, I was tolling. I thought
you were dead.

“ How are you getting your wife to
come home so soon from her out-oftown visit?
“ I sent her a copy of our local pa
per with one item clipped out.”

Director: Have you had any stage
experience?
Applicant: W ell, I once had m y arm
in a cast.

Quality Work
Prospective Buyer (inspecting new
home being b u ilt): This house doesn’t
look too strong.
Contractor: W ell, you’ve got to con
sider we haven’t got the wallpaper
on yet.

Fact, Not Fiction

Odds Too Great

“ Since I have my new automobile,
I don’t have to walk to the bank with
my deposits.”
“That’s nice. Drive over now, eh?”
“ No. I just don’t make any.”

Doctor: Nine out of ten patients die
during this operation. Can I do any
thing for you before we start?
Patient: Yes. Just help me with
my hat and coat.

Wasting Time

Bad Guess

Comrades
Train Traveler: 1 just got out of
prison this morning. It’s going to be
tough, facing old friends.
Another:
I can sympathize with
you. I’m just getting home from the
state legislature.

Speedy
“W h y are sailors referred to as ‘fast
workers’?”
“ It’s only natural — they’re fleet
m en.”

Wrong Recifx>
Cannibal Cook: Shall I boil the m is
sionary, chief?
Chief: Don’t be silly! That’s not a
missionary, that’s a friar.

Friendly Neighbor
“Daddy, Mr. Jones next door wants
to borrow your corkscrew.”
Father (putting on co a t): “All right,
son. I’ll take it right over to him .”

Tripped Up
“W h at do you mean, he was ruined
by his untold wealth?”
“ He didn’t tell about it on his in
come tax.”

“ Daddy, I saw Mama kiss the ice
man this morning.”
“Ye gods! She wastes her time on
him when we owe the grocer $50!”

Plumber: I came to fix the old tub
in the kitchen.
Son: Ma, here’s the doctor to see
the cook.

Fools 'Em
Circus Manager: You ’re pretty small
to be a wild animal trainer.
Applicant: That’s the secret of my
success.
They’re waiting for me to
grow a little larger.

Dead to Rights
Patient: I’m in love with you.
I
don’t want to get well.
Nurse:
Don’t worry, chum, you
won’t. The doctor saw yo*u kissing
me and he’s m y husband.

Trade Secret
First Lawyer: As soon as I realized
it was a crooked business, I got out
of it.
Second Same: H ow much?

Too Strict
First Secretary: The new boss is
o.k., only he’s kinda bigoted.
Second Same: W hatdya mean, big
oted?
First: He thinks words can only
be spelled one way.

Style Above Everything
The young man was waiting impa
tiently at the post office wicket while
two female clerks were busy discuss
ing one of their acquaintances.
“Her evening gow n,” said one, “was
of metallic brocade, with a braided bow
and full sleeves.”
The patient one broke in with: “ I
wonder if you could get me a neat red
stamp with a perforated hem, the
whole business treated with a coating
of beautiful mucilage and costing
about four cents?”

No Tip
Thrifty
Saddler (to Scotchm an): You want
only one spur?
Of what use could
one be?
Scotchman: W ell, I figure if I can
get one side of the horse to go, the
other side will come with it.
N o r t h w e s t e r n Banke r, S e p t e m b e r ,

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

1948

Departing Hotel Guest (to bellhop):
Quick, boy, rush up to 318 and see if
I left m y pajamas. I’ve just got five
minutes to make m y train.
Bellhop (gasping for breath, two
minutes later): Yes, sir. T h ey’re up
there!

Like a Skirt, Perhaps
Garage Mechanic: W h a t’s the mat
ter, lady?
Mrs. Clutchbuster: They say I have
a short circuit. Could you lengthen
it while I wait?

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

The steady substantial growth
in our correspondent accounts measures, we believe, a growing
appreciation for the constructive manner in which we endeavor
to handle each item of correspondent business.

☆

M em ber F ed era l Deposit I n s u ra n ce Corporation

M em ber F ed era l R eserv e System

m l

1 9 4 8 CORN CROP TO I
SET AN ALL-TIME RECORD >

Iowa's 1948 corn crop will set an all-time
record, according to the latest Government
forecast.

Again this year, Iowa Banks and Bankers are
invited to route their grain and other drafts
to this Bank to insure fast and efficient col
lection service for their customers. May we
serve you?

Estimates place average production at 60
bushels per acre. Total yield is estimated at
646,140,000 bushels.

A bumper output of

soybeans also is predicted, and a large crop
of oats has been harvested.

A Strong, Dependable Correspondent Connection

I0WA-DES MOINES NATIONAL BANK

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

Member Federal Deposit Insurance Corporation

Full text of The Northwestern Banker : September 1948, 53rd Year, No. 734

FRASER