ABA Banking Journal - July 2008 - (Page 10)

briefing Then & Now 100th Anniversary 1908-2008 In support of the Greatest Generation T here have been four wars and numerous conflicts in which the United States has participated since 1945, not counting the Cold War, but none of them had the same unifying effect on the nation as World War II. Not even 9-11. Even allowing for sepia-toned recollections, World War II by all accounts was a special situation. Banking—the industry, and Banking— the publication, were caught up in the war effort in very significant ways. The magazine’s covers during the war years were often simple two-color affairs listing the major stories in horizontal bars. But there were exceptions, one of the most dramatic being the September 1942 cover pictured on this page. That issue contained a “Convention in Print.” In response to a request by the U.S. Director of Defense Transportation, the association leadership in 1942 decided to cancel that year’s Annual Convention, to be held in Detroit. This unprecedented step was taken in order to help conserve transportation resources that were urgently needed for the movement of troops and war materials. The staff of the publication, led by long-time Editor William R. Kuhns, pulled together, on short notice, an impressive 184page issue covering a myriad of war-related topics. A letter from President Roosevelt to ABA President Henry W. Koeneke, president of Security Bank of Ponca City, Okla., thanked the industry for helping conserve resources with its “convention in print.” Roosevelt also praised banks for their work in support of the war effort, notably through the sale of War Savings Bonds and helping to finance the massive conversion of industry from peacetime to wartime production. “The bankers of America have a great obligation and a great opportunity to serve our beloved Country in this hour of peril and they have answered the call to service joyfully and with stout hearts,” Roosevelt wrote. Following that message, a detailed recounting of the state of the country’s finances, and banking’s role in it, was given by Secretary of the Treasury Henry Morgenthau, Jr. He pointed out that banks had contributed the equivalent of 25,000 full-time employees to the sale and promotion of War Bonds—$6 billion had been sold through June 30, 1942, of which 85% were sold by banks. There are certain echoes of our own time in Morgenthau’s remarks: “[Banks] have been fighting in the front lines of our battle on the home front by carrying out the restrictions of Regulation W on consumer credit [rules regarding minimum down payments and loan duration], by keeping a careful watch on all applications for non-essential loans, and by helping to freeze foreign funds which the enemy might have used… . They have given their time and energy to this effort without thought of any compensation except the knowledge that they were helping their country in its time of greatest need.” In his convention “speech,” ABA President Koeneke pointed out that banks had begun their war efforts in 1940. In addition to what Morgenthau had mentioned, this included the financing of war housing and “above all other things, the banking fraternity has contributed its full share of men to the armed forces.” The special issue contained dozens of detailed articles intended to be the print equivalent of a convention’s breakout sessions, an economic “panel,” and even an invocation from Bruce R. Baxter, Bishop of the Methodist Church in Port- Many ads in the ‘40s had wartime themes, such as land, Ore. this one from Chase. — Bill Streeter, editor-in-chief Win Wars.” Submitted by Bank of America, it pictured such doodlers as “Paul The Paper Waster,” “Pearl The Pencil Collector,” and “Erwin the Eraser Stabber.” C-Notes shortages ☞ Wartime items. Thewere not confined to household headline for an ad from The Mosler Safe Co. in January 1943 ran, “Your proposed new safe and vault equipment has gone to war…” The text explained that, “Steel—the vitally necessary material—has been reserved for Ships, Guns, Planes and Ammunition. The United States Government has prohibited the building of new Safes, Vaults or Security Equipment.” Reconditioned equipment was another matter, and Mosler asked bankers to contact the company if they had such equipment available. Depart☞ An item in the “Anti-Wastercartoon ment” of August 1942 carried a panel titled, “S.O.S.—Save Our Supplies – Don’t Be a Doodler – Doodlers Don’t Help 10 JULY 2008/ABA BANKING JOURNAL Subscribe at www.ababj.com http://www.ababj.com

Table of Contents Feed for the Digital Edition of ABA Banking Journal - July 2008

ABA Banking Journal - July 2008 Contents Editor’s Column Searching for New Paradigms at BIS Snapshot: C&I Asset Quality 100th Anniversary: Then & Now BofA "Event Concept" Wins Awards, and Customers ABA Resources ABA Chairman’s Position M&A: Beat Today's Market Blues Pass the Aspirin Cover Story: Workout Time Correspondent Banking: No Longer Just a Handshake Business Getting IT Right By Thinking It Through Webnotes Are You "Red Flag" Ready? Mailbox Banker’s Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - July 2008

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