View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

The Financial Magazine of the Mississippi Valley & Southwest

Federal Reserve Bank of St. Louis

APRIL, 1976

and EFTS in an evolving environment




Interdependence (Liberty style) means providing
you with EFTS/Data Processing capabilities geared to
an evolving environm ent. It means services and
capabilities to help you maintain the position of lead­
ership you’ve established in your community.
Just recently, National Sharedata Corporation de­
veloped the necessary com p u ter program s for
ChecOKard . . . the card that tells everyone your
check’s OK. To date, more than 20 Oklahoma banks
have joined with National Sharedata in this vital ven­
ture. You too, are invited to ask Sharedata how you can
offer ChecOKard to your merchant and DDA custom­
And with ENTREE . . . the card your customers use
like a checking account for purchases at 1.7 million
merchants and for cash at 45,000 bank offices world­
wide . . . you now have an avenue to the future of
electronic banking.

0 0

Additionally, National Sharedata has a new Inte­
grated Financial System data base that will help you
intelligently plan and project future requirements.
More importantly, you’ll be able to provide the services
and programs so necessary to an aggressive market­
ing posture.
We’ve only begun to scratch the EFTS surface. Tel­
lerless terminals are here . . . POS terminals are on the
way. MACHA is a reality.
Do you have the capabi lity to meet these challenges
in an evolving electronic environment? Contact your
Liberty Correspondent Department representative to
discuss the im portance of Interdependence and
EFTS/Data Processing for the years ahead. We want to
help you maintain the position of leadership you've
established in your community.

at your

Wli L IB E R T Y


Liberty National Bank & Trust Company of Oklahoma City • P.O. Box 25848 • 73125 • (405) 231-6164
MID-CONTINENT BANKER is published 13 tim e s an nually (two issues in May) at 1201-05 B lu ff St., Fulton, MO 65251. A pril Vol. 72 No 4 SecondClass postage paid at Fulton, Mo. S ubscription: $10.
Federal Reserve Bank of St. Louis

First National Bank o f
Com m erce —New Orleans —
recently led a fifty-bank
consortium in arranging a
$25 million loan which will
provide the interim financing
for construction o f fu el oil
storage facilities located in
Mississippi. The plant, when
com pleted, will store vital
fu el oil for subsequent pow er
generating in a major portion
o f the Gulf South. All banks
involved in the consortium
are headquartered in the

Back in 1970, when First
NBC put together the
financing for the Louisiana
Superdome —the largest
municipal financing project
in the South’s history —we
proved that this region is
financially a lot more potent
than it was given credit for
being. So when we went
looking for other banks to
join forces in making this
new $25' million loan, the
first place we looked was in
the South. Our Correspon­
dent Bankers and our

National Accounts people
got on the phone and soon
found the 49 other Southern
banks which helped make
the-loan a reality.
We probably could have
completed the consortium
with fewer calls. To banks in
the major money centers.
But, to our way of thinking,
we’d rather do our work
here at home.

First National Bank
of C om m erce
Correspondent Banking


210 Baronne Street / New Orleans, Louisiana 70112
WATS Lines: Louisiana 1-800-362-8530. Alabama, Arkansas, Mississippi, Oklahoma and East Texas 800-535-8542.
In other areas call collect 504-529-1371.

Southern Lights.

MID-CONTINENT BANKER for April, 1 9 7 6
Federal Reserve Bank of St. Louis


Federal Reserve Bank of St. Louis


T w o tim e ly m o n e y -m a k e r s
fr o m T h e F irs t N a tio n a l B a n k o f C h ic a g o

1. Cash L e tte r S e rvic e th a t d e liv ers
fa s te r a v a ila b ility ; c u ts flo a t to th e
Being located 45 minutes away from
the world's busiest airport is an advantage.
And we’ve got that advantage worked down
to minutes. Not just hours.
After your cash letter is processed,
a detailed endpoint analysis can be prepared
—so we can study your cash letter composi­
tion and counsel you to m axim ize your
Our availability schedule is out­
standing. . . and is constantly being updated
with additions to our immediate-availability
list and more convenient cut-off times. This
helps you in arranging your shipping
Over 99% of funds deposited with
us are available within one day. Your cash
letters produce working funds fast!
And to assure the fastest possible
delivery of your cash letters to us, our corre­
spondent bankers have the experience and
resources to custom-design a high-speed
system for you.
If fast availability is important to
you, think First Chicago.

2. C u s to d y S e r v ic e t h a t d e liv e r s
fa s te r in fo rm a tio n for surer control
o f fix e d in co m e s e c u ritie s .
We’re on-line; computerized. And
have been for more than 2 years.
• Initial receipts are sent within
24-hours of transactions.
• Advices of credit for interest and
maturity are sent within 24-hours.
• Detailed statements of holding
can be sent within 24 hours of request.
• Pledge-receipts are sent to both
you and pledgee within 24-hours of written
authorization; faster with phone-call notice
that authorization is coming.
• Notices of maturing U.S. Treas­
ury bills and exchanges of U.S. Govern­
ment obligations are sent 2 weeks prior to
required instruction time so you’ll have
extra time for considered decision-making.
• All records are tied directly to
your initial receipts and assure you of
“audit integrity’’.
Movement of securities into or out
o f our C ustody —turn around time —is
expedited, swift, and controlled.
F o r fu ll in fo rm a tio n on C a s h
L e tte r S e r v ic e a n d C u sto d y S erv ic e,
c a ll y o u r F irst N a tio n a l B a n k o f C h ic a g o
c o r r e s p o n d e n t b a n k er, (3 1 2 ) 7 3 2 -4 1 0 1 , o r
w rite us. I t ’s y ou r tim e ; it’s y o u r earn in g s.

The First National Bank of Chicago |F |
The Banks, B ank H olding C om panies and R e la te d A c tiv itie s D ivision. XsSgy
Member FDIC
Federal Reserve Bank of St. Louis


Bank of America NT&SA
Consolidated Statement
of Condition
December 31,1974

Assets (thousands)
Cash and due from banks:
D o m e s tic ........................................................
Overseas branches and s u b s id ia rie s ....................
Investment securities:
United States Government and federal agencies . .
State, county and m u n ic ip a l..............................
Other .............................................................
Trading account s e c u r it ie s ...................................
Total S e c u r itie s ........................................
Federal funds sold and securities purchased
under agreement to re s e ll...................................
Loans ..................................................................
Less reserve for possible loan losses . . . .
Net Loans ...................................................
Lease f in a n c in g ..................................................
Bank premises and e q u ip m e n t..............................
Customers' liability for acceptances.........................
Other a s s e t s ........................................................

Total A ssets...................................






Total Liabilities, Subordinated Capital Notes, and Equity Capital


$ 6,901,521

$ 4,211,562
$ 7,554,953

$ 6,679,071

$ 1,970,845
$ 521,312

$ 1,640,922
$ 584,293

December 31,1974

Total D e p o s i t s ..............................
Federal funds purchased and securities sold
under agreement to repurchase . . . .
Other funds b o r r o w e d ..............................
Liability on acce p ta n ce s..............................
Other l i a b i l i t i e s ........................................
Total L ia b ilit ie s ..............................
Subordinated Capital N o t e s .........................
Equity Capital:
Common Stock, par value $6.25 . . . .
Shares a u t h o r iz e d ..............................
Shares issued ...................................
S u rp lu s ...................................................
Undivided p r o f i t s ...................................
Total Equity C a p it a l.........................

$ 4,943,328


Liabilities, Subordinated Capital Notes,
and Equity Capital (thousands)
Demand deposits:
D o m e s tic ..............................................
Overseas branches and subsidiaries . . .
Savings and time deposits:
Domestic - S a v i n g s ..............................
Time deposits:
I n d iv id u a l.........................
P u b l i c ..............................
Other ..............................
Overseas branches and subsidiaries . . .

December 31,1975

December 31,1975

$ 9,221,642






$ 225,845

$ 225,845




$ 1,813,803


$ 2,084,551



Federal Reserve Bank of St. Louis


Cut the travel tim e
of your overseas d rafts
and collections in half.
When y o u ’re processing foreign
drafts and documentary collections,
the shortest distance between two
points is a straight line. So from now
on, with Chase’s new service, you can
send your foreign drafts and coi­
tions directly to the overseas bank,
without taking a time-consuming de­
tour through your New York corres­
pondent. It’s a Chase advantage that
can save over a w eek’s time co m ­
pared to the service offered by most
othe r banks, and the drafts and
collections will still remain under our

What does that mean to you? It means
that if y o u ’re a c o rre s p o n d e n t of
Chase, you can provide better, faster
service for your custom ers. Their
drafts will be executed quicker and
their collections completed faster.
And a customer who gets better ser­
vice from you is a custom er w ho’s
more satisfied with you.

How does our new service work? It’s
very simple. We provide you with pre­
authorized forms for drafts and docu­
mentary collections. That way, you
give an immediate confirm ation to
yo ur c u sto m e r and you send the
action form directly overseas, without
having to send it through New York.
If you’d like to receive more informa­
tion about how you can cut overseas
draft and collection travel time in half
and an explanation of how Chase’s
other international services can
give your bank a competitive advan­
tage, call a Chase Relationship Man­
ager collect at [212) 552-3192 or just
fill out and mail in the coupon below.

Give your bank the Chase Advantage®
I-------------------------------------------------------------------------------- 1
I Chase Relationship Manager


I Correspondent Banking Division
I P.O. Box 217, Bowling Green Station
I New York, New York 10004


1 □ Please have a Relationship Manager contact me regarding foreign draftsand documentary collections.
□ Send me more information on other international ser- |
vices so my ban kcan have acompetitive advantage.
Name_____ ._________________________ Title--------------- 1
_________________ State--------------- Zip------------ !
Phone (
) - ------------------------------------------------------— i

©Chase Manhattan Bank, N.A. 1975
MID-CONTINENT HANKE« for April, 1976
Federal Reserve Bank of St. Louis

I____________________________________________________ I

Bank on
more from Mercantile...

Our resources are assets to you.
The point is, at Mercantile, you get all the
services you’d expect from one of Am erica’s
largest correspondent banks. And more.
But the biggest asset of all is our eagerness
to work for you!
Count on Mercantile. Where you count.

M E R c n rrn u s
B R fK
Central Group, Banking Dept. * Mercantile Trust Company N.A.
(314)425-2404 • St. Louis, Mo. • Member F.D.I.C.

Federal Reserve Bank of St. Louis


Convention Calendar
April 18-23: Robert M orris Associates Loan
Management Sem inar, Bloomington, Ind.,
Indiana University.
April 21-23: A BA Governing Council Meeting,
White Sulphur Springs, W. V a., the G reen­
April 21-24: Independent B ankers Association
of A m erica Sem inar/W orkshop on Bank
Ownership, New Orleans, Royal Orleans
April 22-23: R obert Morris Associates Lending
to Banks & B ank Holding Companies W ork­
shop, A tlanta, P each tree Plaza.
April 25-27: ABA Southern T rust Conference,
Pinehurst, N. C.
April 25-27 : ABA Southern Regional Bank
Card Conference, Richmond, Va., Richmond
H yalt House.
April 25-28: A BA National Conference on
Real Estate Finance, Dallas, Fairm ont Hotel.
April 25-29: B ank ers Association for Foreign
Trade Annual Meeting, Hot Springs, Va.,
the Homestead.
April 25-30: ABA National C om m ercial Lend­
ing Graduate School, Norman, Okla., Uni­
versity of Oklahoma.
April 25-30: ABA Community B ank CEO
Program , Palm B each, F la ., L a Coquille
A pril 25-30: R obert M orris Associates Loan
M anagement Sem inar, Bloomington, Ind.,
Indiana University.
April 28-29: Independent Community Banks
in Illinois A nnual Convention, Springfield,
Foru m 30 Hotel.
April 29-M ay 1: A B A M eeting W ith the
Com ptroller of the C urrency, B uck Hill
Falls, Pa., B uck Hill Inn & Golf Club.
May 1-3: Louisiana B ankers Association’s A n­
nual Convention, New Orleans, Fairm ont
Roosevelt Hotel.
May 2 -4 : ABA B ank Planning Officers W ork­
shop, Chicago, M arriott Motor Hotel.
May 2 -4 : Association for Modern Banking in
Illinois Annual Convention, Lincolnshire,
111., M ariott-Lincolnshire Resort.
May 2 -4 : T exas B ankers Association Annual
Convention, El Paso, E l Paso Convention
May 2 -4 : B an k Adm inistration Institute
Northern Regional Convention, Chicago.
May 2 -5 : B an k M arketing Association M ar­
keting R esearch Conference, Chicago, H y­
a tt R egency-C hicago.
May 2 -7 : A B A National Personnel School,
Arlington, Va., Ram ada Inn.
May 5 -7 : Kansas B ankers Association Annual
Convention, W ichita, Holiday Inn Plaza.
May 9-12: Conference of State B ank Super­
visors Annual Convention, Colorado Springs,
Colo., the Broadm oor.
May 12-13: ABA Liab ility /A sset M anagement
Policy Decisions Sem inar, San Diego, Sh era­
ton Harbor Island.
May 13-14: R obert Morris Associates In te r­
national Lending Workshop, Chicago, H yatt
May 13-16: National Association of B an k Women Inc. R ocky M ountain/W estern R e ­
gional Conference, Albuquerque, Hilton Inn.
16-18: B ank M arketing
“ Train the T rainer” Sem inar, Rosemont,
111., Holiday Inn-O ’H are/K en ned y.
May 16-18: A BA National M arketing Con­
ference, New Y ork City, W aldorf Astoria.
May 16-18: Missouri Bankers Association A n­
nual Convention, St. Louis, Stouffer’s R iver­
front Inn.
May 16-18: B ank Administration Institute
Southern Regional Convention, Oklahoma
May 17-18: Robert M orris Associates Secured
Lending, A ccounts R eceivable, Inventory &
Eq uipm ent-Financing
Copley Plaza.
May 18-22: Alabama B ankers Association A n­
nual Convention, San Ju an , P . R ., Sheraton
Puerto Rico.
May 22-26: Mississippi B ankers Association
Annual Convention, Biloxi, B iloxi H ilton/
B roadw ater Hotel.
May 23-25: Tennessee Bankers Association
Annual Convention, Nashville, H yatt R egency-Nashville.
May 23-25: Illinois Bankers Association A n­
nual Convention, St. Louis, Stouffer’s R iver­
fron t Towers.

Volume 1 2 , No. 4
29 EFTS:
W h at’s happening today w ill shape tomorrow

/ . Rex Duwe

They’re a bridge to E FT S

Rosemary McKelvey

Most include A TM /PO S capability
The psychology of convenience and change

Jack W . W hittle

How a $90-m illion bank made it with A TM s

Larry W right

A new quandary for lenders

Paul J. Pfeilsticker


Federal Reserve Bank of St. Louis

April, 1976












128 IN D IAN A







131 O KLA H O M A



Ralph B. Cox

Editor & Publisher
Lawrence W. Colbert

Assistant to the Publisher
Rosemary McKelvey

Managing Editor
Jim Fabian

Associate Editor
Daniel H. Clark

Editorial Assistant
A dvertisin g Offices
St. Louis, Mo., 408 Olive, 63102, Tel. 314/
421-5445; Ralph B. Cox, P ublisher; Mar­
garet Holz, A dvertising Production Mgr.
Milwaukee, Wis., 161 W. W isconsin Ave.,
53203, Tel. 414/276-3432; Torben Soren­
son, A dvertising Representative.

13 tim e s an nually (two issues in May)
by Commerce P ublishing Co. at 1201-05
B luff, Fulton, Mo. 65251. Editorial, execu­
tive and business offices, 408 Olive, St.
Louis, Mo. 63102. Printed by The Ovid
Bell Press, Inc., Fulton, Mo. Second-class
postage paid at Fulton, Mo.
S ubscription rates: Three years $21; tw o
years $16; one year $10. Single copies,
$1.50 each.
Commerce P ublications: Am erican Agent
& Broker, Club Management, Decor, Life
Insurance S elling, M id-C ontinent Banker,
Mid-Western Banker, The Bank Board
Letter and Program. Donald H. Clark,
chairm an; Wesley H. Clark, president;
Johnson Poor, executive vice president
and secretary; Ralph B. Cox, firs t vice
president and treasurer; Bernard A. Beggan, William M. Humberg, Allan Kent,
James T. Poor and Don J. Robertson,
vice presidents; Lawrence W. Colbert,
assistant vice president.





The money management system
of the future is here now.
Bank customers w ill be able to start using the system this summer.
And w hat a system it is. SCS Service Card System is more
than just check verification. It's a statewide electronic network
offering numerous financial services including checkless
transactions to consumers, merchants and financial institutions.
The system is operated by a single plastic customer card,
utilized w ith on-line Point-of-Sale and A TM terminals
throughout the network. If you're a financial institution, you
maintain local identity by using your own name on the card
along with the SCS logo. The single SCS card enables you to
offer customers the convenience of access to their accounts
anywhere in the state they see the SCS sign. They make
purchases by transferring funds, get cash w ithout a check,
even make deposits to their accounts.
Stillw ater National Bank is the first bank to join SCS w ith its
own Gold Key Card. O th e r banks will participate soon after.
W ithin a year, approxim ately fifty banks w ill be on-line
representing over one m illion customer accounts. SCS and IBM
have worked closely perfecting this highly sophisticated system.
It provides more on-line services than any data processing
system in this area. The system utilizes the IBM 3614 ATM
and the soon to be introduced 3608 POS term inal with
integrated 45 character printer for sales slips, and
other documents.
O ne great advantage to members is the automatic "instant"
interchange of funds between participants providing the
greatest security and control ever. For the future, SCS w ill
expand its system even farther into adjacent states so that
tom orrow "across the country w ill be across the street."
Federal Reserve Bank of St. Louis



L f
; :

I :

S i

■11 ■ : : I



g h
VWM''WmMm''W*j ’■









e d

/ \ ~ 5<7


Federal Reserve Bank of St. Louis

A complete
marketing program
including cards, forms,
training, installation and
advertising is provided
by SCS. If you're
talking about
oney management systems,
you're talking about
the future and
SCS Service Card System.
W e 're there and beyond.

?nt of Firs» Data Management Company for Participating Financial Institutions'

iformation, contact Ted Shaw 120 North Robinson, P.O. Box 2518 ‘t Oklahoma Citv 73125
14051 272-4063

The Banking Scene
By Dr. Lewis E. Davids
Hill Professor of Bank Management,
University of Missouri, Columbia

Business Faces the Disclosure Dilemma
AST JANUARY, Bank of America
drafted a voluntary code on dis­
closures. The bank’s president, A. W.
Clausen, noted that the code’s objective
was to assure “full, fair, adequate and
honest reporting of material events.”
He also pointed out that his bank in
the past had been charged with finding
a means of accomplishing that end, be­
cause the bank felt that voluntary dis-


"Ethical blindness an d the
evasiveness o f a ra tio n a le
fo r misconduct th a t have
em e rg e d fro m recent in ­
vestig atio n s h av e subjected
e v e ry o n e in business to a
fo rm o f d isg race ."
closure of information beyond that de­
manded by regulators and legislators
was an imperative next step in the
evolution of corporations. That step
would provide a key direction for
American business, Mr. Clausen said.
“Ethical blindness” and the “evasive­
ness of a rationale for misconduct” that
have emerged from recent investiga­
tions have subjected everyone in busi­
ness to a form of disgrace, he said.
“The public is rightly skeptical of
our practices and preachings and to re­
verse this skepticism we must initiate
strong and specific measures to show
we’re serious about our own integrity
and the way we put it to work,” Mr.
Clausen stated. The charge to the Bank
of America task force was to spell out
its ethical standards and convictions
for Bank America Corp. and its sub­
sidiaries, as well as the precise be­
havior expected from all its employees.
This, he said, would be accomplished
largely by publicizing the bank’s exist­
ing standards.
Federal Reserve Bank of St. Louis

Another step to voluntary disclosure
wasn’t by a bank, but it received con­
siderably more publicity. That was the
decision by Gulf Oil’s outside board of
directors to terminate some inside di­
rectors and senior operating officials
due to their alleged illegal activities in
use of corporate funds for political con­
tributions and bribes. Commentaries on
Gulf’s decision pointed out that the
audit committee of its board hadn’t
been given answers to specific ques­
tions concerning those matters.
The Securities and Exchange Com­
mission (SE C ) has been investigating
such actions by major corporations,
looking for cases of bribery and political
contributions in which the use of past
“wash” transactions hid from corporate
owners any specifics of illegal activities.
I support the concepts of Mr. Clau­
sen. Much of the pressure of federal
and state regulatory agencies in the
area of disclosure has been predicated
upon new social attitudes, attitudes
that have been contrary to the prevail­
ing practices not only of many busi­
nesses, but especially of banks. What’s
interesting is that there’s a belief—on
the part of some leaders in banking—
that codes are very important for banks.
Yet, bank spokesmen have shown a re­
luctance to make these available for
public review. It’s not because they’re
ashamed of them, but because they
might be misinterpreted by the general
public, which could see the code’s pub­
lication as self-serving.
More than one top banker has told
me that he and his peers prefer to have
their good deeds speak for themselves
and not be broadcast as a form of PR.
Here is the dilemma: If good works
are done and not publicized, much of
the public may be ignorant of the so­
cial contributions of the institution. On
the other hand, public relations forums
or press interviews for directing atten­

tion to the good actions of an institu­
tion have been considered to be in
questionable taste.
What is considered a good and de­
sirable step at one time often can be
perceived in a much different light a
few years later. 1 can recall situations
where major corporations have been
requested to cooperate with the fed­
eral government in extremely delicate

. . pressure b y . . . re g u ­
la to ry agencies in the a re a
o f disclosure has been p r e ­
d icated upon n e w social a t ­
titu d es , a ttitu d e s th a t have
been c o n tra ry to th e p r e v a il­
ing practices, not o n ly of
m a n y businesses, b ut espe­
c ia lly o f b a n k s ."
situations in foreign countries. Witness
one such situation, where a major multi­
national corporation cooperated with
such a request by the American govern­
ment. It provided the U. S. with some
economic data which, incidently, was
contrary to the official data of the host
country. Some years later, that same
company was criticized both in Amer­
ica and in the host country for med­
dling and trying to influence internal
Another area of concern is reverse
discrimination, where attempts to rati­
fy or come to grips with affirmative-ac­
tion programs may be construed as a
reverse form of discrimination.
President Clausen noted that he
wanted his bank to engage in full, fair,
adequate and honest reporting of m a­
terial events.
The whole concept of materiality
from a technical accounting point of
(Continued on p ag e 134)


WI can
agribusiness <
crossing the street. You’re very likely to
be loaned up seasonally if you have large agribusiness customers. That means overline financing, sometimes loan
participation. I think you get a better deal on both with a big
bank like United Missouri. Our own large correspondent
business means were not after your customers. We just want
to help you serve them better. If this makes sense to you, my

C ali me1”6800'

W united missouri bank
H U I ° f k a n s a s c i t V' n * a -

]oe Henderson. He runs United Missouri’s Agribusiness division.

Federal Reserve Bank of St. Louis





• Clarence C. Barksdale has been
elected chairman and CEO, First Na­
tional in St. Louis, succeeding Edwin
S. Jones, the former chairman. Named
president and chief operating officer
at the bank was Richard F. Ford, for­
merly executive vice president. Mr.
Jones has been elected executive com­
mittee chairman. Mr. Barksdale joined
First National in 1958 and advanced to
president in 1970. Mr. Ford joined the
bank as vice president in 1969 and was
named executive vice president in
1973. Messrs. Barksdale, Ford and
Jones continue in their positions at the
bank’s affiliate, First Union, Inc., St.
Louis— Mr. Barksdale as president and
chief operating officer, Mr. Ford as
executive vice president and Mr. Jones
as chairman and CEO.
• Lawrence K. Rons, formerly ex­
ecutive vice president, First National
in St. Louis, has been appointed presi­
dent of the St. Louis Fed. He succeeds
Darryl R. Francis, who has retired.
Prior to his position at First National,
Mr. Roos was St. Louis County super­
visor, 1962-74, and, before that, presi­
dent, Mound City Trust, St. Louis, and
chairman, First Security Bank, Kirk­
wood, Mo.



• Roger Guffey, senior vice presi­
dent, general counsel and secretary of
the Kansas City Fed, has been ap­
pointed president, following the retire­
ment of George PL Clay. Mr. Guffey
joined the bank in 1968 as general
counsel and secretary. He was named
to the additional post of vice president
in 1971 and senior vice president in
1973. Prior to his promotion, he had
been the senior officer responsible for
the Fed’s administrative services divi­
sion. Mr. Clay joined the bank in 1958
as vice president and general counsel
and advanced to president three years
• First National City Bank, New
York City, is no more. For 164 years,
the institution has Ireen called by the
nickname “Citibank,” so that is its new
official name. Along with the name
change, Citibank and its parent HC,
Citicorp, have adopted new logotypes
and a common corporate symbol.
• Robert E. Barnett has been con­
firmed by the Senate as successor to
Frank Wille as FD IC chairman. The
latter retired after a six-year term. Mr.
Barnett has been deputy to Mr. Wille
and was nominated to the top post by
President Gerald Ford.


• Edward M. Penick, chairman and
CEO, Worthen Bank and its HC, First
Arkansas Bankstock Corp., both of
Little Rock, has been appointed chair­
man of Comptroller of the Currency
James E. Smith’s National Advisory
Committee. Other Mid-Continent-area
bankers appointed to the committee are
Sharnia “Tab” Buford, president, Doug­
lass State, Kansas City, Kan.; Walter
F. Johnson, president, First National,
Abilene, Tex.; Ernest F. Ladd Jr.,
chairman, Merchants National, Mobile;
W. O. Roberson, chairman, First Na­
tional, Brownsville, Tex; Samuel Sax,
chairman, Exchange National, Chicago;
and William H. Vernon, chairman,
Santa Fe (N. M .) National. Purpose of
the committee is to assist the Comp­
troller in a continuing review aimed at
keeping bank regulations abreast of the
nation’s needs.
• Ernest G. Gearheart Jr., former
president, Financial Public Relations
Association (now the Bank Marketing
Association), has retired as vice chair­
man, Farmers Bank of Delaware, W il­
mington, after 10 years there. He head­
ed the bank’s personal and retail bank­
ing group. Mr. Gearhart worked in
marketing most of his 43-year banking


FG L« 1200 35th St,
West Des Moines. Iowa 50265
515 223-2200

Federal Reserve Bank of St. Louis

io m l

/ v jo c


From then to now weve
planned and built or remodeled
more bank buildings than
any other company anywhere.
Since our beginning in 1913, when we
were known as the St. Louis Bank Fixture
Co., we’ve pioneered many designs,
concepts and methods that are now

Bank Building
Corporation ' 4 /

‘in f c l S S t l l S

Helping banks and since 19,3

Up” bank lobbies. We introduced drive-in

Client Service

banking. We have developed a revolu
tionary concept in preplanned bank
buildings. And on more than 6000 projects
we’ve helped banks increase earnings
through proper planning, design and
construction (or remodeling) of their
buildings. May we help you? We have a
man right in your area.

M ississip p i, G e o rg ia , T e n n essee and K e n tu c k y : 4 0 4 / 6 3 3 -2 9 7 1
A rk a n s a s, L o u isia n a , O k la h o m a and T e x a s: 2 1 4 / 6 3 0 -1 1 3 1
M isso u ri, Illin o is and In d ia n a : 3 1 4 / 6 4 7 -3 8 0 0

Federal Reserve Bank of St. Louis

______________________ —....--------------P lease send m e a c o p y o f y o u r b ro c h u re , “H ow T o D e term in e
W h e n , H ow and W h y Y o u S h o u ld R e m o d e l.”
M C -4 7 6
N am e ------------------------------------- — ----------------------------------------------

A d d re s s .


MID-CONTINENT BANKER for April, 1 9 7 6


Bank Building Corp., 1130 Hampton Ave., St. Louis, M O 63139

C ity, S
Stta te and Z ip

________________________ —


Two-Way Education:

Live K in d e rg a rte n Class
Is H e ld in Bank L o b b y
In keeping with American Education
Week’s theme, “Stay Involved,” Millikin National, Decatur, 111., has held a
live kindergarten class demonstration
in its lobby.

All normal classroom activities took
place, including music and art instruc­
tion, and passers-by could view the
proceedings through Millikin National’s
windows. A loudspeaker kept those
outside informed of the progress with­
in, while a schedule of the week’s
itinerary was provided.
As the accompanying photo shows,
the children were seemingly oblivious
to the onlookers and banking activities.
The Philharmonic:

I st N B C of N ew O rleans
Sponsors Two C o n c e rts
First National Bank of Commerce,
New Orleans, has sponsored two sub­
scription concerts by the New Orleans
Philharmonic-Symphony Orchestra.
The concerts, which were held in the
New Orleans Theater of the Performing
Arts, featured pianist Jeffrey Swann and
the Mobile College Concert Choir.

The Second 200':

Bank-Sponsored C o n te s t
A w a rd s P a trio tic W rite rs
The Second 200 contest, a nation­
wide bicentennial competition, was
sponsored by Fiberty National, Okla­
homa City.
Purpose of the contest was to en­
courage people to take a positive for­
ward look to and consider the nation’s
goals over the next 200 years. Contes­
tants wrote—in 200 words or less—
their thoughts and ideas on ways to pre­
serve personal liberties, freedoms and
independence during that period.
Over $10,000 in cash awards was of­
fered for the competition, with a first
prize of $1,000; second prize of $750;
and a $500 third prize. Those entries
winning fourth through 20th places will
receive $150; 21st through 50th, $50;
and 51st through 200th, $25. Names of
winners will be announced July 4.
The contest, which began accepting
entries from across the country last
July 4, has been recognized by the
Bank Marketing Association. The bank
received the BMA’s “Gold Coin Award
of Merit” in the public affairs category
last fall.
The Oklahoma Council on Economic
Education has been given the task of
judging the more than 500 entries re­
ceived, based on originality, legibility
and contribution to the preservation of
personal liberties and individual free­

Living M e m o ria l:

Clothing for Guatemala

Trees A re Bank's G ift
In M e m o ry of W a s h in g to n
Citizens National, Bowling Green,
Kv., has created a “living memorial” to
George Washington and to its com­
munity by donating eight cherry trees,
which have been planted in the city’s
Fountain Square Park.
The cherry trees are of a special
hardy variety, according to a bank
spokesman, and will withstand great
variations in temperature, will have a
vivid pink blossom and a very fine
The event not only tied in with
Washington’s birthday, but served as a
part of Citizens National’s bicentennial
Federal Reserve Bank of St. Louis

C h a rle s S a v a g e

(c.), v .p ., First A la b a m a

B ank,

M o n tg o m e ry ,
2 ,2 0 0
a rticles
clo th in g to M itc h e ll K irk la n d
(I.) a n d
C a rl
S tiven er o f th e A m e ric a n Red C ro s s -M o n tg o m e ry
C h a p te r. The b a n k -d o n a te d clo th in g has been
sent to e a r th q u a k e victim s in Escuintla, G u a te ­
m a la , M o n tg o m e ry 's sister city.

Crime Deterrents:

Banks Sponsor Seminars
O n Bogus Cash, Theft
Counterfeit money, bogus checks and
shoplifting were the topics of informa­
tional seminars for business owners and
citizens around the St. Fouis area,
sponsored by TG Banks, HC affiliate for
Tower Grove Bank and Continental
Bank of St. Louis and House Springs
The 90-minute programs featured
spokesmen from the circuit attorney’s
offices of St. Louis and St. Louis County
and Jefferson County. Also on hand
were members of the shoplifting squads
of the St. Louis, Clayton and Jefferson
County police departments.
Admission to the seminars was free,
and refreshments were served at the
conclusion of each one.
Helps M e e t Objectives:

In stitu tio n Engages Firm
To G ive Financial Counsel
Cullen Center Bank, Houston, has
entered into an agreement with Oak­
land Financial Group, Inc., Charlottes­
ville, Va., to provide professional finan­
cial counseling to residents and com­
panies of the Texas Gulf Coast area.
Under the agreement, the bank and
the financial group will offer a “customdesigned and coordinated strategy to
help individuals reach their financial
objectives in life,” according to a bank
spokesman. The service is said to elimi­
nate piecemeal financial planning for
individuals earning over $50,000 yearly.
The program begins with a financial
health checkup.” The individual is in­
terviewed in detail in order to define his
personal objectives, financial philosophy
and concerns. Discussions are taped for
continuous reference during analysis by
Oakland’s staff. After a detailed study,
a comprehensive written report is pro­
duced for the client, giving explicit
financial recommendations.
Oakland then meets with the client,
making sure he throughly understands
the findings and conclusions of the
analysis. The firm also works with the
clients’ advisers, ensuring implementa­
tion of the plan.
What other benefits does the service
offer? Avoidance of such pitfalls as ab­
sence of wills, poor retirement or disa­
bility planning, low-return tax-shelter
investments and failure to maintain
adequate liquid reserves, according to
Cullen officials. Oakland indicates that,
in over one-third of its cases, it has
discovered through review of back tax
records that refunds were due clients.


Their credit life teacher
is the best.

Last year ex-Standard Life salesmen wrote more than $15,000,000
of credit life premiums for their companies. And we’re proud of them.
We’re glad to see other companies in the credit life field, even when they’re
staffed with ex-Standard Life representatives-because Standard pioneered
credit life insurance in this area, and we’ve been the pacesetters ever since.
That’s because we take credit life seriously. We’ve never considered it a sideline.
And we’re proud to point out that Standard Life writes more credit life than
any company in our area. In fact, most of the new things in the field were
created by Standard.
So, you can bet those salesmen know credit life. They learned it
from the Standard in the business.
Now, they only have one problem. We’re continuing to set the pace.
And they’ll have to work very hard just to keep up.
Contact our home office for more information.

Standard Life
Insurance Com pany/Jackson, Mississippi

Federal Reserve Bank of St. Louis


Selling / Marketing
Fill Er Up? Bank in North Carolina
Offers C ut-R ate Gasoline to Customers
TN D IRECTLY, the energy shortage
has led to an unusual marketing pro­
gram at United Citizens Bank, WinstonSalem, N. C. That institution is offer­
ing gasoline to its customers at cutrate prices—about 49 cents a gallon.
The pumps are activated by plastic
cards used by the bank’s customers. A
record of the sale is transmitted through
the data link at the pumps to a com­
puter owned by Pace Oil, the firm sup­
plying the gas. About 2,000 cards have
been issued so far, according to a bank
The owner of the oil company also is
a United Citizens director and one of
the idea’s originators. Since banking
regulations prohibit a bank from offer­
ing gasoline products, Pace Oil owns
the computer and the pumps. The bank
merely supplies the locations and the
Who may use the service? Any cus­
tomer of the bank, be it a loan custom­
er, depositor or user of any other bank
service. A United Citizens official states
that those using the gasoline are able
to save about $10 monthly on normal
operating costs of their automobiles.
A pilot project originally was run to
test the concept. Gasoline was “sold”

This is n e w id e a in " p r e m iu m s ." U n ite d C itizen s
B a n k, W in s to n -S a le m , N . C., issues p la s tic cards
to custom ers, cards a c tiv a te g a s o lin e p um ps
t h a t d ip en se discoun t fu e l. Pum ps a n d com ­
p u te rs t h a t record tra n s a c tio n a r e o w n e d by
Pace O il, c o m p a n y t h a t su p plies g a s — b a n k
p ro v id e s custom ers a n d lo catio n s.

from pumps near United Citizens’
drive-up windows. Officials say all the
“bugs” have been worked out of the
system, so the cut-rate fuel will be
offered at four sites, although two lo­
cations were in operation at press time.
To sell the service, the bank has
undertaken a concentrated advertising
program involving radio and newspa­
What is the future of this concept?
Only the fates know, but it was with a
small bank such as United Citizens that
“free” personal checking was begun. * •

Changing Tastes:

Bank Launches P rom otion
By P roviding Free Lunch
Farmers State, Albert, Kan., has in­
vited area residents to change their
banking “tastes” with a new image
flavored with Smucker’s jams and jellies.
The institution’s “Country Money
Store” theme—featuring “old-fashioned
friendliness”—was launched with a
free barbeque for 800 invited custom­
ers and prospective customers. Large
jars of the Smucker’s product served as
door prizes.
Then, the bank launched its media
campaign, preceded by delivery of
3,500 jars of free jelly to area residents.
Accompanying the Smucker’s jelly was
a letter from Bill Robbins, bank presi­
dent, telling of the premium offer,
wherein customers could obtain gift
packages of Smucker’s products with
A brochure explaining the bank’s
services and a postage return card also
accompanied the free jelly.
The promotion, which was created
and handled by Lane & Leslie Adver­
tising Agency, Inc., Wichita, was more
successful than anticipated, Mr. Rob­
bins said.

A Capsulized History:

People of 2076 and 2 I 76
To G e t View of This Year
What was life like back in 1976?
That’s a question citizens of Bowling
Green, Ky., will have answered in the
future when two time capsules—to be
National— are
As part of its “Big Spring Bicen­
tennial Celebration,” the bank will seal
the capsules on July 1. One will be
opened in 2076, while the second is
slated for a 2176 opening.
To be preserved in the bank’s vault,
the capsules will contain newspapers,
radio tapes, video tapes, signatures and
messages from area citizens, books, pic­
tures, reports and other items of in­
The bank also is preparing original
art, music, environmental and educa­
tional programs as part of its celebra­
tion of the national heritage.
Federal Reserve Bank of St. Louis

Iowa Rings Up 'No Sale'
Should banks be allowed to sell
such merchandise as coin banks and
clutch purses on their premises to
get new business? Aren’t these sales
a way to promote thrift, which is
one of the essential missions of a
Evidently, the state of Iowa doesn’t
think so because it has a law that
prohibits “the selling of tangible
merchandise by supervised lenders.”
Exceptions include occasional sales
of property used in the ordinary
course of business and sales of items
of collateral of which lenders have
taken possession.
However, according to Iowa’s as­
sistant attorney general, Julian B.
Garrett, tire legislature may change
this law to allow sales of small items
on not-for-profit bases.





F arm ers

S ta te ,

A lb e rt,

K a n ., joins guests a t b a n k -s p o n s o re d b a rb e q u e
kickin g
off Farm ers S ta te " C o u n tr y M o n e y
S to re " p ro m o tio n w h ic h fe a tu r e d S m ucker's g ift
sets fo r d ep osits.



G en e

L in e n b e rg e r,

s.v .p .;



v .p .; a n d Bill R o bbins, p res.,
A lb e r t, K a n ., d r a w n am es fo r

Farm ers S tate,
d o o r p rize s o f

Sm ucker's je lly d u rin g b a n k 's
kicked o ff p ro m o tio n o ffe rin g
sets f o r d ep osits.

b a r b e q u e th a t
Sm ucker's g ift

Behind every Security vault door you'll find our basic
philosophy: cut the cost without cutting important features.
Features like gleaming, no-maintenance satin-finished stain­
less steel over the entire door surface. With no raw steel edges to
rust, no expensive buffing. But good looks are just the beginning.
Other standard features on all doors include: our exclusive
"Snorkel" emergency ventilator, built directly into the vault door
frame', a full 36" clear opening for easy access by teller busses, and
a choice of acrylic or stainless steel daygates.


you'll find everything you'd expect
from a high-priced door except high price.The International's entire
door slab is reinforced with KT-20 monolithic metal to resist torches,
drills and explosives. Your choice of door thicknesses: 3%" 7" or 10!'
These and other features make the International the biggest selling
vault door in the world today.


Federal Reserve Bank of St. Louis

you'll find proof that pressure
lock security can be beautiful. The Saturn II features eight massive
locking bolts that close up pressure tight. KT-20 covers the entire
door area. Available in 3 / 2!' 7" and 10" door thicknesses. And
it's the only standard pressure system door in the world with
immediate delivery.

BEHIND DOOR NO. 3 you'll see the big door you can swing
on a small budget. The Continental's full-length locking bar assures
top-to-bottom contact with the locking jamb. KT-20, the protective
metal inlay, covers the entire lock area.The Continental is available
in a 3 / 2 " door thickness. And it's a lot of door for the money.
If you have an opening for a vault door that's as functional
as it is good-looking, Security has one ready for immediate delivery.
For complete information, write or call today.
Security Vault Doors. r " p r i j n i T M
Quality. Extra features. And
the price is right

r r jR P n R f lT in n
L U n r U n H IIU II

2055 S.E. Main Street, Irvine, Calif. 92714, (714) 979-9000

.^ :


The Amiel Industries AIA heavy-duty coin block
9100 heavy duty automatic
assembly and easy access
coin wrapping machine is
doors which make mainte­
the biggest little automatic
nance a snap...
coin wrapper you can buy...
Sound-proofed with
Big in coin hopper capa­
styrofoam throughout, the
city, holding 10,000 coins
AI-9100 is super
(or up to 30,000 using our
quiet you can operate it
special hopper adapter),
right up front. (You don’t
big in wrapped coin produc­
have to hide it in the
tion, with a throughput of
basement or backroom like
18 rolls per minute... big in
you do some antiquated
experience, with the AI-9100
having thousands of hours of proven workload.
For your coin wrapping needs, make it the
Yet it is little in size, the smallest, most- AI-9100, the biggest little coin wrapper in the
compact coin roller engineered for tomorrow’s business... and best of all, the AI-9100 looks as
needs; built with advanced solid state electronics. good as it works, and works as good as it looks.
Corporate Office: 3 0 0 0 Clearview Parkway Atlanta, Georgia 3 0 3 4 0 (404) 45 5 -0 0 9 0
1285 Rand Road, Des Plaines, Illinois 6 0 616 (312) 29 9 -6 6 3 0 »Plaza 66, Bldg. B-8, Mt. Prospect Avenue,
Clifton, New Jersey 07013 (201) 4 73-0166 •2101 Ferry Avenue, Suite 6 0 4 .1 8 0 0 Pavilion, Camden, New
Jersey 08104 (609) 9 6 2 -9 4 9 0 * 2 2 8 4 Weldon Parkway, St. Louis, Missouri 63141 (314) 567-3323 • 12830
Hillcrest Road, Dallas, Texas 7 5 2 3 0 (214) 387-4579 • 325 Corey Way, S. San Francisco, Cal. 9 4 0 8 0
(4 1 5)873-0316 * 3 9 5 Freeport Btvd. #10, Sparks, Nevada 89431 (702) 3 5 9 -9588 • 1165 Edinboro Drive,
Boulder, Colorado 8 0 3 0 3 (303) 499-1663.
Federal Reserve Bank of St. Louis






The World’s Leader
in Coin & Currency
Handling Systems &

News From Around the Nation

FDIC Proposes Disclosure Amendments
The F D IC has issued for comment three proposed
amendments to the disclosure rules for insured state non­
member banks having registered securities.
The amendments would allocate the reserve for loan
losses three ways. The valuation portion would be de­
ducted from loans; the deferred tax payable would be re­
flected as another liability; and the contingency portion
would be included in undivided profits.
Also, subordinated notes and debentures would no
longer be grouped with stockholders’ equity under the
caption “capital accounts” but would instead be shown
after total liabilities.
Loans would be shown net of unearned income.
The proposed changes are being issued to bring the
F D IC ’s regulations into substantial conformity with those
of the SEC, in accordance with the Depository Institutions
Act of 1974.

Pooled Funds Interest Curb Proposed
Regulators have issued proposals to block the pooling
of funds as a way to beat federal interest rate ceilings on
deposits of less than $100,000.
If adopted, the proposal would apply when a bank or
S&L knows or has reason to believe that the object of
pooling is to circumvent rate ceilings.
Four types of pooling would be exempted: the com­
bination of funds by trust departments to make use of tem­
porarily idle funds from a number of trust accounts, a
similar combination of funds by an attorney acting in a
custodial or fiduciary capacity for funds held in escrow in
a bank, a combination of funds by an individual or or­
ganization that previously held its funds in various ac­
counts or the offering of large CDs to a mutual fund that
invests only a “minimal” percentage of its portfolio in
Comment is invited by the Fed until May 10.

Overdraft Coverage Proposed
The Fed and the FD IC have proposed to allow member
banks to cover overdrafts by transferring funds auto­
matically from a customer’s savings account to his check­
ing account.
Thus, a depositor with savings and checking accounts
at a bank would be permitted to have specified amounts
of funds, in multiples of $100, transferred from the saving
account in case of an overdraft; to authorize an automatic
transfer of funds when the customer’s checking account
balance falls below a predetermined level; and to allow
Federal Reserve Bank of St. Louis

removal of savings to the bank directly, without transfer
to the checking account, in case of an overdraft.
The depositor would forfeit at least 30 days’ interest
on the amount of savings transferred to pay for the service.
Comments will be accepted until May 14.

FDIC Issues Insider Regs
The FD IC has finalized regulations to curb abuses by
insiders. Directors or owners of 10% or more of a bank’s
voting stock are covered.
The regulations require boards to approve all insider
transactions in amounts varying with bank size.
Banks having up to $100 million in assets would need
board approval of all insider transactions in excess of
$20,000. Boards of banks with from $100 million to $500
million in assets would have to approve all insider trans­
actions in excess of $50,000 and boards of banks larger
than $500 million would have to approve all insider trans­
actions over $100,000.
Also, detailed records must be kept by banks and re­
viewed by examiners seeking evidence of unsafe or un­
sound practices or insider abuses.

CD Rates Pegged to T-Bills?
The F D IC has proposed allowing some banks to offer
CDs with interest rates pegged to Treasury bill auction
rates. The proposal would apply to FDIC-insured com­
mercial and mutual savings banks that are not Fed mem­
bers. It would cover deposits of at least $1,000 left on de­
posit for two years or more.
Under the proposal, the rate on variable-rate time de­
posits at commercial banks would vary quarterly depend­
ing on rates of 13-week Treasury bills in the preceding
quarter. The rate would be the average of four weeks’
coupon rate at the Treasury’s weekly auction of 13-week
The four weeks upon which the calculation would be
based would be those immediately before the first day of
the third month in the quarter. The rate would be pub­
lished in the first five days of the third month of each
quarter, permitting banks about 25 days to advertise the
new rate before it became effective.
Rates for mutuals would be one-fourth percentage point
higher than those for commercial banks.
Banks would be permitted to set a minimum amount
below which rates couldn’t fall to protect depositors, but
the floor couldn’t be higher than 4/2%. Banks could also set
a ceiling rate.
The FD IC said the variable rates would be less expen­
sive for banks than the current four- and six-year fixedrates.
Comments will be accepted through May 15.

Installment Lending
Indu stry-W id e Cooperation Is Solution
To Problems in Manufactured Housing
Executive Director
Manufactured Housing
Financial Services Association
HIS W IL L BE an improved year
for the manufactured-housing in­
dustry. It w ont be outstanding, but im­
provements will come in the areas of
product quality and cooperation among
various industry segments.
There will be problems in availa­
bility of funding and progress toward
simple-interest calculations. Availabili­
ty of adequate property insurance will
continue to be a problem, but it’s solv­
able through a spirit of cooperation
among insurers, dealers, manufacturers,
lenders and service companies. The
industry isn’t yet “out of the woods,”
but it is headed in the right direction.
A serious problem in manufactured
housing has been some poor-quality
homes, contributing to complaints, de­
linquencies, repossessions and loan
losses. New building codes and other
legislation are bringing about significant
improvements in this area, however.


" High repossession ratios
in 1974 an d 1975 h av e been
one of the m ain disenchantm ents of m a n u f a c t u r e d
housing to le n d ers."
The Manufactured Housing Finan­
cial Services Association (MHFSA)
conducted a lenders-experience survey
and 57% of the respondents indicated
a continuing interest in mobile-home
paper. However, many expressed in­
terest in availability of programs guar­
anteeing unquestioned safety and satis­
factory yields.
Yield always has been a principal
concern of lenders. During the recent
period of high, tight money, many
lenders found it economically unsound
to continue investing large sums in
mobile-home paper, due to its unsatis­
factory return. Delinquency and repos­
session ratios were too high, so many
lenders withdrew, even though ultimate
losses—in most cases—were either low­
er than, or in line with, other install­
ment portfolios.

Federal Reserve Bank of St. Louis

As lenders ceased buying paper,
manufactured-housing production suf­
fered a proportionate decline: the in­
dustry lost more than 50% of its normal
production, dealing a fatal blow to
some elements.
There’s a brighter picture at present,
with interest rates declining. Uncer­
tainties of the money market, a reason
for a great reluctance on the part of
investors to “get back in,” has resulted
in a “wait and see” attitude. Even if
some are bold enough to venture back
into the market, it undoubtedly will be
with caution, rigid control on credit
extension and with other safety factors.
the banking industry’s
much-publicized problems and losses
in areas other than manufactured hous­
ing are cause for tightened regulatory
control, resulting in stricter credit poli­
cies by individual lenders.
Will there be a tendency by investors
to over-react? That’s possible if obtain­
ing funds continues to be difficult,
even if interest rates remain at favor­
able levels. With an emphasis on safe­
ty, federal programs may be a partial
answer to the future funding problems
of the manufactured-housing industry,
but only if the lending community isn’t
too burdensome and if regulations deal­
ing with servicing, controlling and filing
claims are reasonable. Yields must be
Another development which may cre­
ate additional caution among lenders is
the Federal Trade Commission’s revo­
cation of the holder-in-due-course doc­
trine, which essentially would permit
consumer recourse to the lender in
matters involving product warranties.
Lenders are apt to be slow to finance
products of uncertain quality or those
sold by dealers of uncertain ability
and/or disposition to perform satis­
factory warranty services.
There is another finance considera­
tion. Robert L. Ernst, MHFSA presi­
dent, observed that the industry’s fu­
ture welfare lies in educating manu­
facturers, dealers and lenders on adop­
tion of a different financing program,
a complete change to a simple-interest
reducing-balance type calculation, as in
residential mortgages. He indicated that
escrow accounts should be set up to
provide for payment of insurance pre­
miums and taxes. Mr. Ernst suggested

up to 12 years for single-wide motor
homes, 15 years for double-wides and
18 years for modulars with real estate.
The dealers, he said, must learn that
they must make profits on sales, not on
reserves and participations.
As long as manufactured housing is
marketed through a manufacturerdealer-buyer-lender relationship, there
will be a need for dealer-inventory
financing (floor plan). Lenders usually
avoid this type of lending, providing it
only as a means of obtaining profitable,
dealer-generated retail paper. If finance
programs move in the direction of sim­
ple-interest calculations on the reducing
balance, new and different methods of
merchandising, with or without real
estate, will be devised. Dealers will
have less control over time sales and
lenders will be less dependent on deal­
ers for profitable finance business and
therefore less disposed to provision of
inventory financing. Dealers will have
to become better, more sophisticated
merchants, better capitalized and mak­
ing profits on sales.
High repossession ratios in 1974 and
1975 have been one of the main disenchantments of manufactured housing
to lenders. A partial answer to that
problem is revealed in the previously
mentioned lenders-experience survey.
The four most common reasons found
for delinquency and repossession were
marital problems, unemployment, overextension of credit and dissatisfaction
with warranty service or with the home
The problem of overextended credit,

"A s long as m a n u factu red
housing is m a rk e te d through
a m a n u fa c tu re r-d e a le r-b u y ­
e r-le n d e r re la tio n s h ip , th e re
w ill be a need fo r . . . flo o r­
p la n n in g ."
dissatisfaction with warranty service or
the home, lack of equity and a few of
the others probably will be overcome.
Marital problems and unemployment,
the two greatest causes, can be mini­
mized, but can’t be eliminated.
Repossession problems, the source of
much lender dissatisfaction, can and
probably will be corrected. This is a
“plus” for the industry because the
price of new housing is increasing
steadily and is bound to go out of the
reach of many buyers. As this occurs,
the demand for less-expensive units
will increase. Repossessions may fill this
The current repossession situation is
under control in virtually all areas.
The experience gained by having had
(C ontinued on p age 132)


is for Banking.
T hat s your business, and we never forget it. That s why all the paperwork
in our program is designed for quick and easy completion by loan officers, not
underwriters. And we make sure you always have all the supplies you need. Free.
B is also for Book. Ours is a thorough Reference Manual that details the entire Integon
program of life and health coverage, contract limits, maximum terms, procedures for claims,
refunds and reports, and samples of all charts, forms and certificates. Plus a bonus section
to make selling easier for you.
B is for Bread, too. And we know which side ours is buttered on. S o we never sign you
up and then leave you hanging. Instead, the Integon representative works with you to get
everything set up and running smoothly. Then he
makes regular visits to keep things that way. And
if you need him in-between times, just call. And
he 11 make a beeline to your door.
When a new loan officer joins your firm, our
representative provides a complete training pres­
entation that helps your staff sell better. S o your
bank can earn more.
And finally, B is for Bottom Line. And we do
everything possible to make sure yours is favorable.
There s a lot more, and if you re interested,
you should call J . Wayne Williard, Jr., collect at
919/ 725-7261. As Vice-President of Credit I nsurance,
he’ll be happy to arrange an appointment at your
convenience, without obligation. Or, if you don’t
feel like talking, write him at Integon Life Insur­
ance Corporation, P O. Box 3199, Winston-Salem,
N. C. 27102. Either way, once you get all the facts,
we think you’ll agree that Integon’s Credit Insur­
ance program is not only pleasant and profitable.
J . Wayne Williard, J r . , V ice-P resid en t
But also easy as you-know-what.

(^ IN T E G O N
Federal Reserve Bank of St. Louis


• Mosler. Arthur Pisetzner has been
appointed region general manager of
the enlarged central sales region of
Mosler, Hamilton, O. He will be head­
quartered in Lincolnwood, 111., and will
be responsible for sales, installation
and service of Mosler equipment in an
area including Illinois and Indiana. He
will be assisted by Ford Campbell,
region sales manager. Mr. Pisetzner
previously was regional manager of
Mosler’s New York sales area.



• Amiel Industries. Robert A. Pfei­
fer has been named senior sales repre­
sentative for the southern division of
Amiel Industries of North America, At­
lanta. Mr. Pfeifer will be headquartered
in Nashville. He goes to Amiel from
General Communications & Electronics
and previously was' with Unimar Corp.
and Mosler Safe Co.

Insurance. Mr. Impey, along with the
other board members, will work with
the department on an advisory basis on
all phases of insurance. At Financial
Insurance Service, Inc., Mr. Impey su­
pervises production of insurance pro­
grams for commercial banks in Missouri
and Illinois.
• Continental Mortgage Insurance,
Inc. Stephen E. Otstott has been
named manager of the new Kansas
City branch underwriting office of Con­
tinental Mortgage Insurance, Inc., sub­
sidiary of CMI Investment Corp., Mad­
ison, Wis. The office will serve lending
institutions in Missouri and Kansas. Mr.
Otstott previously was an underwriter
in Continental’s Dallas regional under­
writing office.

• Financial Insurance Service, Inc.
Jack W. Impey, senior vice president,
Financial Insurance Service, Inc., Des
Plaines, 111., has been appointed by
Governor Daniel Walker to the state
advisory board of the Department of

• Automation Forms Co., Inc.
Products for use in the bank operations
area are available from Automation
Forms Co., Inc., Garland, Tex. The
firm’s correction fluid, correction labels
and document carriers may be used to
correct key stroke errors at check en­
coding machines, while Automation
Forms’ document carriers may be used
to repair and reenter reader-sorter re­
ject items and make torn or mutilated
documents machinable prior to sorting.
A sample reject/correction repair kit
containing these three products may be

Federal Reserve Bank of St. Louis


obtained free. Write:
Forms Co., Inc., P.O. Box 1706, Gar­
land, T X 75040.
• Diebold, Inc. The Visual Auto
Teller VI is the new member of the
line of drive-up machines from Die­
bold, Inc., Canton, O. Transaction ser­
vice is done by way of pneumatic
tubes. The transaction carrier is of
clear plastic, giving full visibility of its




D ie b o ld

fe a tu r e s

p la s tic

c a rrie r

V is u a l

p n e u m a tic

A u to

T e lle r

o p e ra tio n ,

o ff-c o u n te r

t e lle r


• James Talcott, Inc. Brooke Grant
has been elected chairman and presi­
dent of Talcott National Corp., financ­
ing and factoring subsidiary of James
Talcott, Inc. Mr. Grant succeeds James
C. Slaughter, the former chairman, and
Harvey M. Kelsey Jr., the former presi­
dent, both of whom resigned to accept
positions elsewhere. Three new direc­
tors of Talcott National have been
elected: David M. Kennedy, former
U. S. Treasury Secretary and former
chairman of Continental Illinois Na­
tional, Chicago; Franklin D. Johnson,
partner, Jardine, Johnson & Baldwin
law firm, Salt Lake City; and Glendon
E. Johnson, chairman and CEO, Amer­
ican National Financial Corp., Galves­
ton, Tex. All four are principal share­
holders of Uintah National Corp., a
Utah-based investment group which
has purchased 53% of the Talcott Na­
tional common stock.
• John H. Harland Co. Dan Miller
has been named sales representative
for Kansas City and surrounding areas
by John H. Harland Co., Atlanta. Mr.
Miller will serve banks being supplied
from Harland’s St. Louis plant.


w h ic h


V I,
cle a r

con trols.

contents and the unit features a twoway audio system and controls that are
located in an off-the-counter console.
For multiple installations, the Visual
Auto Teller VI transaction carriers and
customer service units have color-coded
panels. The customer units can be se­
cured with key-locking tambour covers
during nonbusiness hours. Write: Die­
bold, Inc., Canton, OH 44711.
• Mosler. To stimulate safe-depositbox rentals, a new promotional kit is
being offered by Mosler, Hamilton, O.
The kit contains 16 different statement
stuffers that can be imprinted with the
bank’s name, an easel card for counter
display, 30- and 60-second radio com­
mercial copy, newspaper ad mats and
duplicate personal inventory records. In
addition, Mosler is offering a free­
standing lobby display which holds four
safe-deposit-box tins. Write: Mosler
Safe Co., Department PR-042, 1561

All beautiful full co lo r authentic reproductions



D ram atically successful in a ll areas
of the USA . M em berships increased
by 200% and m ore!
Letters available confirm ing above

U n iq u e o p p o r tu n ity to h e lp y o u r
c o m m u n ity B ic e n te n n ia l-w is e and
y o u r s e lv e s g oo d p u b lic re la tio n s w ise, a t little o r n o co st.
W rite for details and exclu sive

There are trays of all kinds, cheap, intermediate and good, most of ordinary run designs and quality
reproduction, all generally sold retail, many discounted.
“ FINE ARTS” trays are created for promotion use only, NONE SOLD IN STORES ANYWHERE! A truly
“ exclusive” incentive and public-relations item of the Highest Quality Authentic Full Color Reproductions of

“ Believe it or not”—a woman can have a dozen trays at home, she’ll want and go out of her way for still another
one IF UNIQUELY DIFFERENT AND BEAUTIFUL. Our “ Fine Arts” trays are just that, particularly in our
unusual and lovely Oval shape and richly reproduced designs NOT SEEN IN STORES ANYWHERE, a real
“impulse desired” item.
Write for exclusive in your trading area. Send $1.00 to cover postage and handling tor free tray.

FABCRAFT, INC. “The Tray People,” Frenchtown, N.J. 08825
MID-CONTINENT BANKER for April, 1 9 7 6
Federal Reserve Bank of St. Louis

Federal Reserve Bank of St. Louis

Is your teller
ignoring an $80,000
You are very attentive to a good
customer when he comes to you for a
$50,000 mortgage, a $20,000 secured loan
and a $10,000 home improvement loan.
But when he comes to buy travelers
cheques, does your teller sell him just an
ordinary brand?
Carrying the right Travelers Cheque is a
very important part of travel. So when one of
your good customers asks for Travelers
Cheques, the only brand of Travelers Cheques
your teller should recommend is American
Express" Travelers Cheques.
They are not an ordinary brand of
Travelers Cheques. They offer your important
customers decided advantages.
Am erican Express Travelers Cheques are
good at more hotels, restaurants, shops and gas
stations across Am erica than any other
travelers cheques.
Am erican Express Travelers Cheques are
supported across Am erica by an “Emergency
Refund”5" system that never closes.* Never.
(O ther travelers cheques refund systems
can be closed as many as 120 days a year.)
Am erican Express Travelers Cheques are
supported by over 650 travel offices around
the world. T h e other two major travelers
cheques aren’t backed by any travel offices.
If your tellers are not aware of the

advantages of Am erican Express Travelers
Cheques they should be. And they can be.
W ith your help.
Simply cut out the box on this page
marked A ttention Tellers and send it to
your head teller for distribution.
It could help you to keep your best
customer your best customer.

• American Express Travelers Cheques are
good at thousands of hotels, restaurants, gas
stations and shops across America where
other travelers cheques aren’t.
• American Express Travelers Cheques are
the only Travelers Cheques backed by a
refund system that never closes.
• American Express Travelers Cheques are
supported by over 650 travel
offices around the world.
• Last year more travelers
used American Express
Travelers Cheques than any
other. They are the world’s
leading Travelers Cheques.
American Express Travelers Cheques can provide your customers extra service.
Emergency refunds of up to $100 at night, on weekends and holidays.

Am erican Express Travelers Cheques

American Express Company
Federal Reserve Bank of St. Louis


f iv e wavs
. o u r Q F system can
in c re a s e your bank's
p ro fita b ility and goodwill
i f y o u have only a few
b ran ch es and some
to u g h com petition.
It is a management tool whose data
can be computer-summarized in a
host of invaluable ways, helping you to
identify optimal new branch locations,
evaluate the profitability of individuals
as well as sociographic groups, and
prepare for debit card introduction
and growth.
And it increases your
responsiveness to any
customer’s personal
banking needs. For in­
stance, since your best
prospects for a new
service are existing cus­
tomers, let Cl F spotlight the real
candidates for you, saving a variety
of costs and avoiding possible loss of
hard-won goodwill.
It uncomplicates your life, shrinking
paperwork and credit searches to an
absolute minimum, saving money all
over the place, speeding up service
and wrapping up new business.
It tells you everything —status of
demand deposit and savings accounts,
installment loans and interbank card
activity—no matter how a file is
accessed. That much information is
often all it takes to authorize a new
service, instantly.
It reduces your credit risk by giving
you a complete profile in seconds of
all the account relationships any
customer maintains with your bank;
change information needs to be
entered only once, eliminating
duplicate transaction processing.

There are a lot more ways our CIF
system can begin accelerating your
growth in less than a year for a very
nominal cost. Why not call Gib W itter
or Bill Korengel collect at [513]
852-5492 for the whole Central
Trust CIF story?
We already have more than one-half
million accounts and a growing number
of very happy participants in our
Central Information File. We have no
doubts about its ability to be doing
some big things for your bank, too.

Central Trust Tower,
Fourth and Vine Streets
Cincinnati, Ohio 45201

Federal Reserve Bank of St. Louis




W h a ts Happening Today
W ill Shape Tomorrow

American Bankers Assn.

ACH bank in the United States has
entered the world of electronic
funds transfers, or will soon do so. No
banker realistically can say, “Count me
One example proves the point: direct
deposit of social security checks. The
government is cutting the costs of pro­
cessing and delivering recurring social
security and supplemental security
checks by using an electronic process—
namely automated clearing houses
(ACH s). W e’ll all be participants in
this process, whether we receive com­
puter tapes, punch cards or printouts.
W e’re all involved in E F T .
I’d like to review some recent E F T
events that will shape the E F T environ­
ment for tomorrow. True, these events
have been reported in the trade press
and on the business pages of our news­
papers, but, by my bringing this infor­
mation together, we may gain a new
perspective on the evolving system and
may be better able to make E F T de­
cisions. W e may be better prepared to
answer the questions of when and how
our banks will use electronic transfers.
Any E F T news roundup gravitates
toward the interpretive ruling on Cus­
tomer-Bank Communications Terminals
(C BC Ts) issued by Comptroller of the
Currency James Smith in late 1974.
The Comptroller said that CBCTs do
not constitute bank branches. This con­
troversial statement proved a boon to
the legal profession by generating many


# Mr. Duwe is chairman and president,
Farmers State, Lucas, Kan.

Last October, the Comptroller sus­
pended his ruling after several courts
had held that his CBCT interpretation
violated, at least in part, the McFadden
Act. But this did not mean an end to
CBCTs. It did mean that a decision to
use these terminals had to be made by
individual banks acting on the basis of
internal business decisions and on the
advice of their own counsels.
Some banks have chosen to use
CBCTs and have been taken to court.
Most of the court decisions have stated
that, in one way or another, CBCTs are
branches. But, in a first-of-its kind de­
cision on January 2 of this year, a U. S.
District Court in Oklahoma ruled in
support of the Comptroller’s contention
that CBCTs are not bank branches.
As a sidelight, this is the only CBCT
case so far in which witnesses have
testified. Other decisions have been
rendered solely on the basis of legal
What will be the final chapter in the
CBCT story? It seems fairly certain that
the whole CBCT question eventually
will wind up in the Supreme Court. At
any rate, that’s the prediction of the
Comptroller’s office and the consensus
among many other knowledgeable peo­
However, there’s a larger question
that should be asked: Should the na­
tion’s decision about CBCTs rest en­
tirely on legal arguments concerning
whether these devices are bank
In an article in the December issue
of Banking magazine, Blair Schick of
Arthur D. Little, Inc., stated that the

Federal Reserve Bank of St. Louis

law has defined the debate on CBCTs
and that “W e argue whether E F T fa­
cilities are branches only because the
statutes are so written as to allow no
other questions to be asked.” Mr. Schick
says, “The better course is to turn the
process around. The law should be de­
fined by a debate on E F T , not a de­
bate on what ‘branch’ means.”
What is the ABA’s position on
CBCTs? We believe that CBCTs are a
new device for delivering traditional
bank services—not in changing those
services—and that they should be al­
lowed. Bank-branching laws, by defi­
nition, affect only banks. If we alone
are blocked from installing electronic
terminals, our competitors would gain
an unfair advantage. CBCT rulings
don’t affect thrifts, and they certainly
don’t affect Penney’s, Sears and Mont­
gomery Ward. But these retailers are
our financial competitors, too. Right
now, they’re offering a tremendous
amount of credit to our mutual cus­
tomers. These retail outlets are install­
ing computerized “cash registers” that
could easily be used to accept the
equivalent of deposits.
While remembering that our com­
petition isn’t limited to thrifts, let’s look
at some of the recent E F T develop­
ments involving them.
First, the Federal Home Loan Bank
Board has said it will continue to au­
thorize “experimental” remote service
units (RSU s) for federal thrifts until
July 31, 1976. This is an extension of
the previous deadline. From the con­
sumer’s point of view, a CBCT and
RSU are identical. From our point of


view as bankers, federal S&Ls are being
granted specific authority to operate
these units while national banks have
been stymied by legal actions and are
not able to get the same explicit goahead. This is unfair. It means federal
S&Ls have an unfair advantage.
A second important question involves
thrifts, banks and E F T centers on di­
rect access to automated clearing
In June, the Federal Reserve pro­
posed that Fed-member banks and
other financial institutions “authorized
to maintain demand-deposit accounts”
have the right to direct origination of
ACH entries at all Fed-operated ACH
facilities. At the same time, the Fed
suggested direct delivery to any institu­
tion that had a “sufficient” volume of
transactions and that was on an existing
Fed courier route. In November, the
Justice Department recommended that
the Fed revamp its proposal. Justice
suggested that the Fed establish fees
for all ACH services and offer partici­
pation on a nondiscriminatory basis to
all financial institutions. The ABA ex­
pressed concern that the Justice D e­
partment had misunderstood both the
statutory powers of financial institutions
and the way ACH access actually
would work under the Fed proposal.
The ABA consistently has maintained
that origination of entries through the
automated clearing house system should
be limited to institutions having de­
mand-deposit powers.
In January of this year, the Federal
Reserve Board announced an interim
policy for the deposit and delivery of
payments on magnetic tape cleared
through its facilities. The change per­
mits ACH organizations to allow
thrifts direct access to Fed-operated
ACHs if, and this is important, if the
thrifts are members of an ACH. Es­
sentially, the burden of decision as to
who gets direct access to ACHs rests,
then, with bank-dominated ACH as­
sociations, and several of these associa­
tions have voted thrifts membership
and, therefore, direct access. ACHs in
New York, New England, Michigan,
Philadelphia and Pittsburgh already
have agreed to admit thrift institutions
to full and equal membership.
Thrifts also seem to be making head­
way in another area. In Chicago, com­
mercial banks are competing with one
another in selling point-of-sale (POS)
services to S&Fs. Continental Illinois
National has announced an agreement
to establish an E F T computer linkup
with the Federal Home Foan Bank of
Chicago. The tie-in, scheduled for op­
eration this summer, will allow S&Ls
that use FH LB data processing services
to participate in the 200-terminal POS
system Continental plans to operate in
two major Chicago retail chains.

Federal Reserve Bank of St. Louis

Meanwhile, Continental’s major ban k
competitor, First National of Chicago,
recently signed the city’s three largest
S&Ls for participation in its new E F T
package, known as the “YES” System.
Again, remote terminals will be shared.
Ironically, Illinois S&Ls sharing in
POS networks now have a competitive
advantage over banks. S&L customers
can make both deposits and withdraw­
als at remote terminals, while bank cus­
tomers are permitted to make only
withdrawals. This court ruling is being
appealed by Continental and FNB of
One final note about thrifts and elec­
tronic funds transfers. This year, the
Federal Home Loan Bank took pre­
liminary steps toward an FHLB-operated POS-related switching system. The
FH LBs invited computer hardware and
software vendors to submit proposals
for the design and development of
such switching systems.
In early September, the Federal
Home Loan Bank of San Francisco an­
nounced it would operate a pilot E F T

Spotlighting 'Never-Close' Bank

Isn’t it a good thing
your bank
never closes?
Your bank is National City.

H e re 's
M a r io n ,


in te re s tin g

O .,




N a tio n a l

p u b lic iz e

C ity


B a n k,

a u to m a te d

te lle r m a c h in e , calle d "T h e B a n k -K e y 2 4 ." The
a d fe a tu r e d th re e d iffe r e n t s itu a tio n s in w h ic h
h a v in g

access to th e b a n k 's A T M

w as an


v a n ta g e : The w o m a n a t le ft just re m e m b e re d ,

10 o 'clock


n ig h t, t h a t


lo an

paym ent

w a s d u e t h a t d a y ; th e m a n in th e cen ter n e e d ­
ed a s a fe p la c e to p u t th e $ 2 5 0
re c e iv e d , a t



tru ck;

p ic k u p


e x tra


S a tu rd a y


m oney

th e


he h a d


n ig h t, fo r

cou ple


o 'clock


rig h t

S u n d ay

a fte rn o o n to o b ta in " th e b u y o f a lif e t im e " a t
a ya rd

s ale. The p ic tu re a t th e b o tto m


sh o w s


th e

a ll

b a n k 's

th re e

s itu a tio n s

bein g

w hose


d is p e n s in g m o n e y a n d ta k in g d ep osits.

o f th e

reso lved
in clu d e

switch that would permit members to
share remote service units in retail es­
tablishments. The San Francisco pro­
gram was described as the potential
forerunner of a nationwide switch and
settlement center for thrift institutions.
But the Justice Department took ex­
ception to the proposal, saying, “There
is no demonstrable need for the Home
Loan banks to enter the E F T S field”
and that government operation could
lead to a “regulated public utility ap­
The San Francisco project has been
postponed, at least for the time being.
Nonetheless, we must recognize that
the FH LB has acted as an advocate
for the S&L industry, and sometimes
that has meant advocating EFT-related
Turning from thrifts, let me briefly
mention a few other E F T develop­
First, both major bank card com­
panies are interested in debit cards.
About six months ago, National BankAmericard, Inc., announced plans for
a nationwide debit-card plan. Inter­
bank Card Association— the Master
Charge company—is proposing its own
debit-card program to its members. We
should keep up to date on these pro­
Moreover, individual banks and
groups of banks are preparing to offer
similar services. As you know, Financial
Communications Services Corp., oper­
ating in Missouri and surrounding
states, now has 150 banks participating
in its proposed debit-card program.
This number is growing every day.
Second, Hempstead Bank, on Long
Island, has reactivated its program for
POS electronic fund transfers. If you’ll
remember, Hempstead was an inno­
vator in POS, offering the service from
November 1, 1971, to December 31,
1972. Now Hempstead has decided that
it’s time to reinstitute POS operations
and will install terminals in the stores
of 35 merchants in six communities.
Going international for a moment,
bankers may be wondering what’s hap­
pening with SW IFT —the Society for
Worldwide Interbank Financial Tele­
communications. Since its inception in
1970, this group of banks has been
planning a sophisticated system of in­
ternational payments and a network for
message transfers. Initial operations of
the system, developed privately by 300
banks in 13 European countries, Can­
ada and the U. S., had been planned
for June. But the start-up will be de­
layed by at least four months. At any
rate, SW IFT is on the way.
With all this E F T activity, what role
has the ABA played? Actually, we’ve
played several roles. W e’ve testified be(Continued on p ag e 97)



W ebe

w a tc h e s
th ro u g h



N a u n h e im

G e o rg e



its pac es. T e rm in a l

p ro v id e s



C h a rte r

a .v .p .,

serves fo r

im m e d ia te

B ank

d a ta



v id e o
e n tr y ,


O v e r la n d ,
d is p la y

e s p e c ia lly

c o m p le te

M o .,

te r m in a l


m a s te r

file .

R IG H T: H a rr y W . A d a m s Jr. (r.), s .v .p ., C h a rte r B a n k o f Jen n in g s, M o .,
is su p e rv is o r o f C e n tu ry 201

system t h a t serves C h a r te r

Banks in


Louis a r e a .

Tellers Have Complete Customer Information
At Fingertips W ith New Terminal System
HALES, the Greek philosopher,
gave this advice: “Know thyself.”
But a bank is even better advised to
know its customers. And the six St.
Louis-area institutions of First National
Charter Corp., Kansas City-based HC,
now have the capability of knowing
virtually everything a bank wants to
know about each of its customers—
immediately, via terminal inquiry.
For example, every teller in the two
facilities of Charter Bank of Jennings,
the three facilities of Charter Bank of
Overland, or, in part, at Webster
Groves Trust, is on-line via a terminal
for memo posting and inquiry into each
bank’s complete customer master file,
within security limits. The data are
stored on a Century 201 system at
Charter Bank of Jennings and available
through a customer integrated refer­
ence file (C I/R F) developed coopera­
tively by NCR and the ED P Corp. of
“W e believe we have achieved, with
the CI/RF, the informational goals
banks have been seeking since the
customer information file concept was
first advanced,” said Harry W. Adams
Jr., senior vice president of Charter
Bank of Jennings. “We now have, for
the first time, a complete, immediate
display of the entire data base, includ­
ing all types of accounts, activity, his­

tory, special instructions, demographics
and the like.
“This enables us to upgrade cus­
tomer service and customer relations
to a level never before possible.”
To illustrate: The system advises the
teller if she can cash a check for a
specific amount on an account and im­
mediately reduces the available balance
by the amount of that transaction via
memo posting. If there are not sufficient
funds in the account, the terminal in­
forms the teller the date and the
amount of the last deposit, available
balance, whether there are any holds
on the account plus the account num­
ber and balance of every other deposit
account the customer has with the bank
—without the teller even requesting
this information. Thus, the teller can
courteously suggest to the customer
that he or she transfer funds to cover
the check.
Stops and holds can also be placed
through any terminal in any of the
banks’ facilities. When a customer asks
the bank to place a stop on an account,
the system advises immediately if a
check for the same amount has been
paid since the last statement, via a
thermal printer or a data display tube.
If a customer wants to pay off a
loan, the printer or the data display
unit shows the net payoff amount. The

Federal Reserve Bank of St. Louis

teller accepts this and the system
makes all adjusting entries through the
general ledger.
Further, a loan officer at one of the
Overland or Jennings facilities can get
a complete customer profile through a
small thermal printer. The profile in­
cludes detailed data on all demand de­
posit and savings accounts, with cur­
rent balances and average balances for
the previous year; the number of de­
mand deposit overdrafts and NSFs;
aggregate balances for past years, and
the number of years; a listing of CDs;
a complete history of past accounts,
such as an installment loan paid off in
1971, and payment performance; date
of first business with the bank; special
instructions; c o m p le te demographic
data, etc. Upon request, the thermo
printer can produce instantly an in­
tegrated, itemized statement of all ac­
counts of an individual customer, with
every transaction since the last regu­
larly issued statement detailed thereon.
Security restrictions govern the avail­
ability-through-terminal of this com­
plete data base, of course. And the
flexible system permits each Charter
Bank to set up its own security and
override codes. Typically, data on ac­
counts considered confidential is dis­
played only at specified terminals,
along with the words “confidential in-


"The g re a te s t v a lu e o f th e n e w system is not in h a rd ­
w a re fe a tu re s , . . . b u t in the com pleteness an d im m ed iac y
o f the k n o w le d g e it m akes a v a ila b le on a ll o f our custom­
ers . . "

At the Charter Banks of Jennings
and Overland, applications on-line since
last spring include demand deposit,
regular savings, CDs, installment loans,
Christmas club and “golden” savings—
a commitment savings account.
Webster Groves Trust began convert­
ing to CI/RF at the end of July and
now has on-line demand deposit and
savings; general ledger is also auto­
mated. All systems design, programing
and actual conversion of these banks
has been handled under Mr. Adams’
direction. Soon to be added to the
system are the two facilities of Ameri­
can Bank, DeSoto, Mo., another
Charter Bank 65 miles from St. Louis,
and the recently acquired Bank of
There are 17 Charter Banks in Mis­
souri, and total assets of First National
Charter Corp. are nearly $1.2 billion.
The flagship bank of the HC is First
National, Kansas City, which performs
a key role in the Charter family of
banks. It provided the original corpo­
rate management when the HC was
formed and continues to be a source of
expertise in many fields, including spe­
cialized lending, trust services, invest­
ments and data processing.
Generally, processing for the western
half of Missouri, where some threefourths of the Charter Banks are lo­
cated, is handled on a large computer
at First of Kansas City. That system
processes data for numerous outside
banks, too. A few Charter Banks still
have their own small systems, and
Charter Bank of Jennings serves the
three banks mentioned, with the Cen­
tury 201 system. It replaces equipment
that served the Jennings and Overland
facilities. However, the old system pro­
vided access just to limited information
and only via the computer’s printer.
This meant 24-hour delays in most
In 1973, a six-man committee from
First National Charter Corp. traveled
around the country looking at data
processing systems, equipment and
programs. The committee recommend­
ed to management establishment of a
CI/RF, among other things. The initial
thinking was that this would be based
in the large Kansas City system. How­
ever, a CI/RF is a logical outgrowth
of a C IF, which the western operation

Federal Reserve Bank of St. Louis

lacked. Consequently, the Jennings op­
eration was expanded and upgraded to
the Century 201 over one weekend
without programing changes, thanks to
the “upward compatibility” of the
First National is now working on a
CI/RF approach, too, using an IBM
system. Savings and demand accounts
there have been placed on-line for
inquiry through video display termi­
nals. On-line teller terminals and
cathode-ray tubes are operating at First
National’s main bank, its Loma Vista
Branch and at Leawood National, an
affiliate of First National Charter.
In the meantime, the new system at
Charter Bank of Jennings has the po­
tential to handle other Charter Banks
and/or processing for outside banks.
At least two could be added, and more
with the installation of additional
At present the Jennings, Overland
and Webster Groves facilities have 52
teller terminals, 11 video display termi­
nals for inquiry and/or data entry,
particularly of new accounts; and eight
thermal printers. Despite the number
of terminals, the system services each
bank with just one phone line, regard­
less of the number of facilities, via a
multiplexor in the computer room.
“We selected the NCR 279 teller
terminals for a variety of reasons,” said
Mr. Adams. “Because their cost is low,
we can afford one for each teller, op­
timizing customer service. Also, these
are universal terminals, which handle
all our transactions. And they are allelectronic, except for the printer. So
they are fast and quiet, with little to
go wrong. W e have experienced mini­
mum downtime.”
Although the 279 is not an “intelli­
gent” terminal, it does maintain totals
electronically. If line problems are en­
countered, for instance, the terminals
can continue to operate off-line.
“The greatest value of the new sys­
tem is not in hardware features,
though,” Mr. Adams declared, “but in
the completeness and immediacy of
the knowledge it makes available on
all of our customers—simply because
this knowledge now enables the Char­
ter Banks to serve these customers
better than they have ever been able
to in the past.” * *

EFT Network to Be Shared
By Chicago Bank, S&Ls
And Linked to Milwaukee
C H IC A G O—F if ty-six area S&Ls
have filed applications with the Fed­
eral Home Loan Bank Board to share
the electronic network of Continental
Illinois National. The terminals are
located at 199 National Food stores
and Dominick’s Finer Foods locations.
Pioneer Bank, Chicago, has become
the fourth bank to contract for direct
participation in Continental Bank’s
electronic banking network at Domi­
Continental has had the system in
use for more than one year. When the
S&Ls begin participating in it some­
time in mid-1976, their customers will
be able to make savings-account de­
posits and withdrawals and cash checks
at any terminal. Bank customers are
prohibited by regulation from using
the machines for deposits.
The S&Ls have signed initial agree­
ments to participate in the network,
while three of Continental’s correspon­
dent banks—Avenue Bank, Oak Park,
and Glenview State and National Se­
curity Bank, both of Chicago—have
signed contracts to share in it.
Under FH L B regulations, federal
S&Ls were given until February 29 to
file applications in Washington for in­
stallation or sharing of the remote
service units (R SU s). The terminals
would be categorized as RSUs once the
S&L customers began using them.
The 56 S&Ls will share Continental’s
network under agreements the bank
has signed to provide computer linkage
between its electronic terminals at the
supermarkets and those that handle
data processing for the S&Ls, such as
the Federal Home Loan Bank of
switches between itself and participat­
ing S&Ls handling their own process­
During the third quarter of this year,
Continental Bank plans to establish a
computer link with Milwaukee Midland
National, enabling the latter bank’s cus­
tomers and customers of 48 S&Ls in
Illinois and Wisconsin for whom Mid­
land handles data processing to share
Continental Bank’s electronic network
at National Foods and Dominick’s su­
permarkets in the Chicago area.
This computer link is said to be the
first interstate link in the Midwest.


— with them, banks can cross bridge
from paper-based system to EFTS
RE BANKS headed for the same
paper problem that smothered the
brokerage industry in 1968? Can banks
physically continue to handle the grow­
ing volume of checks (about 25 billion
a year, with that figure projected to
rise to 44 billion a year by 1980)? Will
they be able to hire the additional peo­
ple needed for the job of processing
these checks? An ABA survey in 1968
suggested that the time eventually
would come when checking-account
service charges might have to be raised

Managing Editor


and the banking industry would have
a shortage of qualified personnel for
check-processing operations.
Will banks be able to go on absorb­
ing the massive expenditures for paper,
energy and transportation needed to
keep payment-exchange mechanisms in
good running conditions?
The answer, obviously, is, “Of course
not.” That’s why the subject of elec­

MID-CONTINENT BANKER for April, 1 9 7 6
Federal Reserve Bank of St. Louis

tronic funds transfer systems (E F T S )
is the hottest topic in banking today.
E F T S is an umbrella term that covers
all electronically recorded exchanges of
money. Put simply, E F T S are com­
puterized systems that replace cumber­
some paper work with fast, efficient
records of transactions on magnetic
The technological advances that pro­
duced E F T S began in 1948 with the
invention of the transistor and were
followed closely by the development of
integrated circuits. These two electronic

devices are looked on as primary in­
fluences in today’s electronic revolution.
Miniaturization and savings in power
have made it possible for electronic
circuits to be packaged in increasingly
smaller spaces.
In the past few years, the financial
world has seen development of various
E F T systems, each with its own acro­
nym or initial identification. These in­
clude ATMs (automated teller ma­
chines), POS (point-of-sale) terminals,
CBCTs (customer-bank communica­
tions terminals) and RSUs (remote
service units)— all directed toward cus­
tomer/bank or customer/retailer rela­
There’s still another component of
an electronic funds transfer or payment
system—the automated clearing house
(A CH ). It’s different from ATMs, POS
terminals, CBCTs and RSUs in that
ACHs are being developed primarily to
simplify and expedite financial transac­
tions between banks, between banks
and clearing houses, between banks and
the Federal Reserve System and be­
tween banks and their large-employer
customers. ACHs are ban k oriented,
while the other E F T systems are cus­
tom er oriented.
An ACH system can act as a neutral
interconnection between banks and
provide banks with the fundamental
capability for shifting from a paperbased to an electronic system and one,
incidentally, that enables banks to offer
a wide variety of electronic services to
their customers.
Development of the ACH system fol­
lowed a two-year study by the ABA’s
Monetary and Payments System Plan­
ning Committee. The latter, in 1971,
announced that the study showed that

Figure 1

N o te

1: O r ig in a tin g

c o rre s p o n d e n t b a n k s t h a t re c e iv e p a p e rle s s en trie s fro m

a n d choose to d e a l w ith A C H th ro u g h o r ig in a tin g

the banking industry should work on
establishing a clearing and distribution
system for electronic payments and
recommended that this be done region­
ally by banks in local areas and, logi­
cally, through their clearing house as­
The ACH concept actually had its
beginning in California in a project
called SCOPE (Special Committee on
Paperless Entries). Other ACH testing
efforts were carried out by Atlanta’s
COPE (Committee on Paperless En­
tries ).
on m a g n e tic ta p e

on o n ly one fo o t o f m a g n e tic t a p e .

M id -A m e r ic a

in fo rm a tio n

P a y m e n t E x ch an g e
Federal Reserve Bank of St. Louis


h e re in p a y ­

m e n t cycle. Figures 1, 2 a n d 3 , sh o w n h e re a n d on o p p o s ite p a g e , a r e re p ro d u c e d

U n d e r A C H system , fu n d s tra n s fe rs a r e re co rd e d

o f t a p e a n d th u s can c o n ta in

lo c a te d

fro m b o o k le t p r e p a re d b y H o uston C H A , n o w m e rg e d w ith S o u th w e s te rn A C H .

reels lik e one

s h o w n here. P ictured a r e 6 4 0 checks, w h ic h re p re s e n t n u m b e r o f tra n s a c tio n s th a t
can be re co rd e d

b an k a re

fro m


1 ,5 3 6 ,0 0 0

( M A C H A ), St. Lou is-b ase d

re e l

holds 2 ,4 0 0



fe e t

cou rtesy

As now constructed, the ACH system
involves five key participants:
1. T he custom er or em p loy ee is the
individual who authorizes the paperless
entries. In a direct-deposit system, the
employee gives his employer the au­
thority to initiate a credit entry auto­
matically to his bank account at a
receiving bank each payday. For pre­
authorized debits, the customer au­
thorizes a billing company to intro­
duce a debit entry into the banking
system to pay his bill.
2. T h e com pany or em ployer is the
business entity that introduces paper­
less entries into the banking system.
As an employer, a firm produces credits
to pay employees. As a billing firm, a
company creates debit entries for cus­
tomers who have authorized this form
of bill payment. A bank with data
processing capability or access to data
processing facilities could create the
paperless entries for its customers.
3. T h e originating ban k receives
paperless credits and/or debits from
participating firms and forwards the
entries to the central clearing facility.
Originating banks also must agree to
act as receiving banks (see No. 4 ).
Banks that choose to introduce paper­
less entries for a customer company to
the ACH through other banks are re­
ferred to as originating correspondent
4. T he receivin g ban k receives pa­
perless entries from the ACH and posts
them to its depositors’ accounts. Banks
without data processing capabilities

Figure 2

Figure 3





FIG U RE 2: (1 ) E m p lo y e e g iv e s a u th o r iz a tio n f o r c re d it e n trie s . (2 ) Em ­

p a n y p re p a re s m a g n e tic t a p e fo r its d e p o s it a n d

p lo y e r

accounts a n d

p re p a re s

m a g n e tic

ta p e


p a y ro ll

en trie s


d e liv e rs


his b a n k . (3 ) O rig in a tin g (e m p lo y e r's ) b a n k b a la n c e s e n trie s to co n tro l
s u b m itte d


e m p lo y e r ,

e x tra c ts

e n trie s

fo r

e m p lo y e e s


a re


b a la n c e s

d e liv e rs to

en trie s


his b a n k .

co n tro l

to ta ls

(3 )

s u b m itte d

w h o a r e d e p o s ito rs o f b a n k , th e n

t a p e o f en trie s f o r e m p lo y e e s w h o

b a n k s a n d d e liv e rs to A C H . (4 ) A C H

to A C H . (4 ) A C H
fo r

r o u tin g

receives ta p e s , sorts e n trie s a n d

to e m p lo y e e


m akes

c re a te s n e w

s e ttle m e n t o f

en trie s

ta p e s



liv e rs ta p e s to e m p lo y e e 's b a n k . (5 ) R e ceiving (e m p lo y e e 's ) b a n k

b a l­

ances a n d v a lid a te s t a p e e n trie s , credits p a y to e m p lo y e e 's account a n d


e n tr y


accom pany



s ta te m e n t.



(1 ) C u s to m e r g iv e s a u th o r iz a tio n to c o m p a n y f o r d e b it en trie s. (2 ) C o m -
Federal Reserve Bank of St. Louis

(c o m p a n y 's )
com pany


d e p o s it,

p rodu ces ta p e

o f e n trie s fo r

o th e r

receives ta p e s , sorts e n trie s a n d

c reates n e w t a p e f o r r o u tin g to custom er's b a n k , m a k e s s e ttle m e n t o f
en trie s a n d d e liv e rs ta p e s to custom er's b a n k . (5 ) R eceiving (cu sto m er's)
b a n k b a la n c e s a n d

v a lid a te s t a p e e n trie s , posts d e b it en trie s to


to m e r accounts a n d describes c h a rg es w ith n e x t b a n k s ta te m e n t. N o te :

p a y m e n t is v a r ia b le

a m o u n t,

com pany

g e n e r a lly

w ill


to n o tify custom er b e fo re processing d e b it e n try th ro u g h A C H

may participate in the ACH by receiv­ transactions to non-New York City par­
ing paper advices instead of magnetic ticipants via the Fed courier system.
ACH paperless entries are divided
tape or punched cards.
T he ACH is the central clearing into two categories: credits and debits.
The most widespread use of elec­
facility that receives paperless entries
from originating banks, distributes the tronic credit is direct deposit of pay­
entries to appropriate receiving banks rolls. Here’s how it works:
The employee gives his employer au­
and performs the settlement function
thorization for credit entries. The em­
for ACH-member banks.
There now are about 36 ACHs ployer prepares magnetic tape of pay­
across the country, either operational or
in the planning stages. More will be
developed in the future. Most of the
ACH Meeting May 12-14
paperless entries that these ACHs are
The future of the automated clear­
handling or will handle are or will be
ing house movement will be exam­
processed on IBM equipment owned
ined in detail May 12-14, when the
and operated by the Federal Reserve
National Automated Clearing House
banks in their respective areas. For
Association (NACHA) holds a Con­
instance, the Mid-America Payment
ference on the Future at the Atlanta
Exchange (M A PEX ), headquartered in
Hilton Hotel.
St. Louis, will send its items through
The conference will be devoted
the St. Louis Fed. The Mid-America
totally to ACH problems and oppor­
tunities. According to William O.
Clearing House Association (MACHA),
Anderson, chairman, NACHA Edu­
located in Kansas City, will work
cation/ Communications Committee,
through the K. C. Fed.
“We will try to anticipate the future
However, some ACHs will operate
in terms of marketing, the continu­
independently of the Fed. The New
ously changing legal and regulatory
York ACH (NYACH), which opened
environment, operations and the ag­
for business in mid-December, has be­
gressive movements of the thrift in­
dustry toward a more vigorous role
come the first ACH to do so. It’s shar­
in the pre-authorized payments sec­
ing a Burroughs B/6700 computer sys­
tor.” Mr. Anderson is sr. v.p., Ohio
tem with the Clearing House Interbank
Nat’l, Columbus.
Payments System (C H IP S). The latter,
For more information, write:
in operation since 1970, is used to clear
Sharon Humphries, NACHA Con­
single-message, high-value, m o n ey ference Coordinator, American Bank­
ers Association, 1120 Connecticut
market-type transfers among 62 partici­
Avenue, N. W., Washington, DC
pating institutions in New York City.
Although NYACH is operated without
Fed help, it does expect to distribute
MID-CONTINENT BANKER for April, 1 9 7 6

w ith

cred its c o m p a n y account a n d e x tra c ts e n trie s f o r p o s tin g to custom ers

p o s ito rs o f b a n k a n d d e b its e m p lo y e r's p a y ro ll acc o u n t, th e n p ro d u ces
b a n k a t o th e r b a n k s a n d d e liv e rs

c h a rg es to custom er

O r ig in a tin g

re q u ire d
system .

roll entries and delivers it to his bank.
The originating (employer’s) bank bal­
ances the entries to the control sub­
mitted by the employer, extracts entries
for employees who are depositors of
the bank and debits the employer’s pay­
roll account. The originating bank pro­
duces a tape of entries for employees
who are customers of other banks and
delivers it to the local ACH.
The ACH receives tapes, sorts entries
and creates new tapes for routing to
employee banks, makes settlement of
entries and delivers tapes to employee
banks. The receiving (employee’s)
bank balances and validates tape en­
tries, credits pay to the employee’s ac­
count and describes the pay entry to
accompany the next bank statement.
Without the ACH’s part in direct
deposit of payrolls, a firm would have
to deal with all the banks where its
employees have accounts. Using the
ACH facility allows a company to deal
only with its own bank, while giving
it the opportunity to offer the directdeposit service throughout the company
as an employee benefit.
A paperless debit is created when a
company receives a standing or periodic
authorization from a customer to debit
that customer’s checking account to pay
his bill. The debit system works this
The customer gives authorization to
a firm for debit entries. The company
prepares magnetic tape for its deposit
and charges to customer accounts and
delivers it to his bank. The originating

(company’s) bank balances entries to
control totals submitted with the firm’s
deposit, credits the company’s account
and extracts entries for posting to ac­
counts of customers who are depositors
of the bank, produces a tape of entries
for other banks and delivers this tape
to the ACH. The latter receives the
tapes, sorts entries and creates a new
tape for routing to the customer’s bank,
makes a settlement of entries and de­
livers tapes to customers’ banks. The
receiving (customer’s) bank balances
and validates tape entries, posts debit
entries to customer accounts and de­
scribes the charges with the next bank
Fixed-amount payments, including

insurance premiums, mortgage and loan
payments, involve a standing agree­
ment from the customer to the com­
pany. The firm then routinely prepares
and sends to the customer’s account a
paperless debit at each billing cycle.
Variable-amount payments, such as
utility bills and retail accounts, can be
handled in the same manner as the
fixed-amount payment. Operating rules
of existing ACH systems generally re­
quire a notification to be sent to the
customer each billing cycle before the
debit is processed against his account.
This procedure allows the customer
time to delay or stop the debit if it’s
The Bill Check system was devised

Year 2 0 0 0 W ill See Individual Clearings
Rise to 125 Billion, ACH Officer Predicts
ITH IN 25 years, 125 billion
separate clearings will be going
through the banking system! That’s the
prediction of James E. (Ed ) True, ex­
ecutive director, Mid-America Payment
Exchange (M A PE X ), St. Louis-based
ACH association.
However, he adds,
because of the rap­
idly d e v e lo p in g
ACH system across
the country, 35 bil­
lion of these items
w ill b e g o in g
through the ACHs.
Thus, the paper
work will be cut
down considerably.
Mr. True cau­
tions those who believe ACHs will pro­
vide immediate answers to banks’ grow­
ing paper problems by saying he be­
lieves the volume of checks won’t start
decreasing until 35 or 40 years from
now. Then, he continues, the number
of checks being handled annually will
go back down to just about where it is
now—25 billion. He compares the or­
ganizing of ACHs to planting trees:
Results won’t be seen immediately, but
to achieve those results, the ground­
work must be laid now.
Mr. True is a 20-year veteran of the
U. S. Air Force, having retired last
year as a lieutenant colonel and chief,
Regional Operations Division, Scott Air
Force Base, Belleville, 111. He says the
Air Force helped pioneer direct deposit
of paychecks by E F T , and now 85% of
the Air Force payroll is sent directly
to financial institutions for disburse­
ment electronically. In fact, according
to Mr. True, in the St. Louis zone of


Federal Reserve Bank of St. Louis

the Eighth Federal Reserve District
alone, the Air Force is sending 10,320
entries directly to 930 banks.
Direct deposits of social security
checks were begun on an experimental
basis in Georgia and Florida and
worked so well that they’re now avail­
able across the nation. According to a
Treasury Department announcement,
current enrollment exceeds 33 million
per month, including 51,000 payments
being made by E F T .
Mr. True points out that Equitable
Life Assurance Society already is pro­
cessing more than 30,000 monthly pre­
mium payments in about 225 banks
via magnetic tape. This, he believes, is
a major endorsement of E F T S. He says
that besides banks in New York, Cali­
fornia, Georgia, New England and Chi­
cago now in the Equitable program, the
firm is negotiating with banks in some
15 to 20 other areas where ACHs are
planned and expects to add 100,000
accounts to the plan each month.
As another example of E F T , Mr.
True alludes to the American Express
checkless-payment plan, under which
68,000 card holders in California may
authorize automatic checking-account
withdrawals for paying their AmEx
bills. These items, says Mr. True, will
be processed through the California
Mr. True attributes the rapid spread
of ACHs throughout the U. S. largely
to increasingly positive response by
consumers to the convenience of elec­
tronic funds transfer,
eagerness to reduce expenses and fraud
losses and banks’ need to deal effective­
ly with growing check-handling prob­
lems and costs. • •

by the Atlanta Payments Project to al­
low the consumer complete control over
the timing and amount of his bill pay­
ments. Under this concept, the com­
pany sends the customer a bill each
billing cycle. Instead of writing a
check, the customer signs the bill stub
itself and returns it to the company,
thereby granting the firm a one-time
authority to initiate a charge to his
bank account in the amount specified
by the customer on the Bill Check. In
this way, the customer retains absolute
control; he returns the signed Bill
Check whenever he wishes and for
whatever amount he wants to pay, or
he still has the option to write a check.
The Atlanta Payments Project was an
extensive research program sponsored
jointly by commercial banks and the
Atlanta Fed. The project came to a
close in 1974 after publishing major
research results and included the plan­
ning and implementation effort for the
Georgia Automated Clearing House As­
sociation. The participating commercial
banks were formed into the Committee
on Paperless Entries ( C O P E ).
In addition to the regional ACHs
now located across the country, there’s
National Automated
House Association (NACHA), which
was incorporated June 20, 1974, by the
four ACHs then existing in California,
Georgia, New England and the Upper
Midwest. It was formed to promulgate
and monitor standards to facilitate the
interregional exchange of ACH items,
to study and develop educational and
promotional programs and to provide'
member associations with technical as­
sistance in activating ACHs. The asso­
ciation receives staff, administrative and
financial support from the American
Bankers Association, in whose Washing­
ton, D. C., offices it is headquartered.
However, NACHA is a separate and
independent entity from the ABA. Also,
it’s an administrative, not an opera­
tional, ACH.
Shortly after it was formed, NACHA
bought the SCOPE computer software
package and related licensing authority
from the Los Angeles and San Fran­
cisco Clearing houses. The two clearing
houses—through their Special Commit­
tee on Paperless Entries— spent more
than 4K years developing the SCOPE
software package, procedures, legal
documents, operating rules and other
related materials.
NACHA and the Fed jointly directed
the revision of the original software
program because— although it was
sound—the SCOPE program was de­
veloped to operate on small-scale IBM/
360 computers. As a result, the pro­
gram was segmented into more rou­
tines than really were needed, and
there were too many operator inter-


Call Red.
M a y b e y o u 'll b e lu c k y
a n d g e t C h e ry l.
When our top correspondent
banker, Glenn P. "Red” Ward is
out of town, Cheryl Cross minds
his business - and she can
probably help with your’stoo.
No matter what your ques­
tion m ay involve, Cheryl
knows where to find the an­
swer. She knows our people,
and she knows their specific
C a ll Red. Or, c a ll W ilbur
W aters. K eep your fingers
crossed and hope for a soft
voiced answer.
Call C heryl, the b etter
banker's banker.

k (918) 587-9171

PÜIH National


lUlsa, Oklahoma
M em ber F D I C

Federal Reserve Bank of St. Louis

ventions. The new software, developed
at the Cleveland Fed, was scheduled
to be installed in Georgia and Florida
in February and March, respectively,
and will be installed in all other regions
of the country by the third quarter of
this year.
NACHA is governed by a board of
directors, made up of one representa­
tive from each member ACH and
representing all 12 Fed districts. It
also has a nonvoting advisory board,
composed of one representative each
from the ABA’s Payment System Policy
Committee, the ABA’s Operations and
Automation Division, the Bank Ad­
ministration Institute, the Fed and the
How does an ACH benefit its par­
ticipants? The Houston Clearing House
Association, which was merged into
the Southwestern ACH last September,
put it this way in a booklet it pub­
lished, entitled “The Automated Clear­
ing House: Toward a New Payments
System” :
Benefits to the cu stom er/em p loy ee—
saves paycheck-depositing time and
energy; deposits funds automatically,
even during trips or illnesses; elimi­
nates the danger of lost or stolen paychecks; saves check-writing time and
cost for paying bills and postage ex­
pense; eliminates the worry of paying

bills on time and schedules automatic
bill payments at regular intervals, thus
improving budget control.
Benefits to firms—reduces checkpreparation and distribution costs; pro­
vides the additional employee benefit
of automatic deposit; makes funds from
receivables available sooner with elec­
tronic bill payment; eliminates match­
ing returned checks and stubs or other
required procedures when entering pay­
ments; reduces cost of processing lost
and stolen paychecks; improves cashmanagement capability and creates a
means of orderly growth in the pay­
ments system.
Benefits to banks— offers customers
new and improved ways of making
payments; reduces check-processing
and labor costs; expands marketing op­
portunities and again creates a means
of orderly growth in the payments
The various ACHs are designed to
fill the need for an interregional ex­
change capability for electronic debits
and credits, while NACHA provides a
mechanism for establishing and ad­
ministering nationwide standards and
operating rules for the ACHs. * *

Direct Deposit of Payroll
Begun as Pilot Project
By Four ACH Associations
A good example of how automated
clearing house associations can provide
direct-deposit service for a firm’s em­
ployees is the program recently an­
nounced by the Aluminum Co. of
America (ALCO A), described as the
world’s leading aluminum producer,
and Ernst & Ernst, one of the country’s
largest public accounting firms.
The new pilot electronic funds trans­
fer program is being handled by finan­
cial institution computers throughout
the Fourth Federal Reserve District,
which encompasses Ohio and parts of
Kentucky, Pennsylvania and West Vir­
ginia. It was brought about by a com­
bined effort of all of the ACHs in the
Fourth District. This group includes:
the Columbus Regional Automated
Funds Transfer System (C R A FT S),
Columbus, O.: Mid-America Automat­
ed Payments System (M A PS), Cleve­
land; Regional Payments Exchange
(R E P E X ),
Cincinnati/Dayton; and
Tri-State ACH (TRI-SA C H ), Pitts­
The program involves a twice-amonth payroll for 350 employees. AL-

When You're in St. Louis,
W hy N o t Go One Step Further
And Take Advantage of the Finest Hotel Accommodations
the C ity Has to Offer . . .

C h e s h ir e

£ o b g e

Located between, and only minutes from,
Downtown St. Louis and the Clayton Business District

(Ü h p s h trr J t m
6300 C L A Y T O N



iiiity p



(314) 647-7300

Federal Reserve Bank of St. Louis


We've seen
the future.
G ive us
two days
and we'll
show you
how H
Im S w

the 5th Annual
Payment Systems
Symposium on the
Future of EFTS,
May 24-25,
in Chicago.
Federal Reserve Bank of St. Louis

For two days we’ll be meeting
in the Hyatt Regency O’Hare in
Chicago. The topic: electronic banking.
The theme: EFTS —Be Prepared. Our
goal: to help you respond to the
challenge of electronic funds trans­
fer systems. It’s something we’ve
been involved in since 1968. And
something you're sure to become in­
volved in soon —if you're not al ready.
Well be discussing debit
card development, off premises
banking, check guarantee plans,
direct deposit programs, legal/
regulatory issues, marketing considerations—and a host
of other relevant and important topics. Well feature pre­
sentations on successful electronic funds transfer systems
that will help you to better plan your own payment systems
But space is limited. We urge you to fill out the
coupon below and mail it today or call our Meetings Co­
ordinator collect [212) 687-0390. After all, it's not
every day you get a chance to look into the future
and see how it works.

p si

Meetings Coordinator
Payment Systems, Inc.,
9 0 Park Avenue, Suite 28C, New York, New York 10016

Please send me: □ Registration forms
□ More Information
(or call collect 212-687-0390)
Title___ __


Com pany.
A d d re s s _



COA payroll entries are being issued
in Pittsburgh for employees of the
firm’s subsidiary, Wear-Ever Co. in
Chillicothe, O. At the same time, pay­
roll entries are being sent by Ernst &
Ernst in Cleveland to participating
ACHs in Columbus, Cincinnati and
Dayton in Ohio and Erie and Pitts­

burgh in Pennsylvania.
Payroll entries are being electron­
ically prepared by ALCOA and Ernst
& Ernst and forwarded to their local
financial institution, which credits the
accounts of its own customers and
forwards the magnetic tape to the local
ACH. The latter then distributes the

items to the various ACHs operating
in the Fourth District.
A spokesman for the project points
out that intra-district efforts such as
this will lead the way in establishing
the many systems and operations tech­
niques necessary to bring about a na­
tional inter-ACH exchange system.

New Fed Guidelines Pave Way for Thrifts to Take Part in ACH Systems
r P HE F E D has announced interim
ACH access guidelines that pave
the way for thrift institutions to use
the ACH system described in the ac­
companying article.
In a separate, but related action, the
Fed released for comment by March
19 a revised proposal to amend Regu­
lation J to deal with clearing and settle­
ment of wire-transfer and payment in­
structions recorded on magnetic tape.
The proposed Regulation J revisions
originally were released in November,
1973, in connection with a solicitation
for comment on the broad issues asso­

Brokers in
Financial Market

Federal Funds
Brokers Call Loans
Eurocurrency Deposits
Repurchase Agreements
Term Federal Funds
Bonds Borrowed and Loaned
Domestic and Euro C D ’s

Palumbo & Company, Inc.
Establiihed 1962



■ &
26 BROADWAY, NEW YORK. N. Y. 10004
Cable: PALUMAC Tel: 2 I2 269 3456

Federal Reserve Bank of St. Louis

ciated with the Fed’s role in the emerg­
ing electronic payments system.
The revised access guidelines pro­
vide that Fed banks will handle and
process ACH transactions for all mem­
ber banks and any other depository
institution that’s a m em ber o f an ACH
group. The guidelines expand consid­
erably the Federal Reserve Board’s
proposal of last June 10 that would
have limited direct origination of en­
tries to financial institutions authorized
to maintain demand-deposit accounts.
Under the latest guidelines, thrifts that
belon g to an ACH w ill b e a b le to
originate entries directly from thirdparty-transfer accounts.
Although the Fed’s announcement
doesn’t focus explicitly on the subject
of thrift-institution participation in
ACHs, it does say, “In providing clear­
ing and settlement services for ACH
associations, the board anticipates that
these services will be made reasonably
available on a comparable basis to de­
pository institutions having need for
such services.” In other words, the Fed
is putting the question of thrift mem­
bership squarely up to each ACH and
its member banks.
Also, Fed-member banks will be able
to originate entries even if they don’t
belong to an ACH. This means receiv­
ing institutions will have to seek di­
rectly from such originators assurances
of warranties to guarantee the validity,
accuracy and timeliness of entries origi­
nated. These warranties are in effect
administratively for ACH-member in­
Under the new guidelines, items de­
posited on magnetic tape through an
ACH may originate from any thirdparty account, including savings, ne­
gotiable orders of withdrawal (NOW )
and share-draft accounts. The contro­
versial NOW accounts were excluded
from ACH eligibility in the Fed’s June
10th proposal because, the Fed said,
they weren’t “demand-deposit” ac­
The Fed—in describing the new ac­

cess policies as "interim guidelines”—
noted that it intends to publish, in the
near future, a pricing schedule, based
on fully allocated costs, for both ACH
and check-processing services, at which
time the interim policies may be modi­
fied. In developing the pricing sched­
ule, the Fed continued, it would con­
sider the burden of required reserves
maintained by member banks. * m

New Film on EFT Services
From Graduate Banking School
MADSION, W IS.— “Electronic Bank­
ing: Where the Buck Stops” is the title
of a new educational film from the
Graduate School of Banking at the
University of Wisconsin.
The 27-minute color film, with an
guide, is designed as a sequel to last
year’s movie, “The Future in Your
This new offering provides step-bystep guidance to bankers considering
the introduction of electronic banking
services within their organizations. It
shows E F T systems in current use
across the nation in banks, financial
institutions and nonfinancially oriented
“Electronic Banking: Where the
Buck Stops” details a road map lead­
ing to answers for questions such as:
“Should we involve our bank in elec­
tronic banking?” or “How do we go
about making an informed decision on
this new delivery system?”
Purchase price for the film is $250
for members and banks of the Central
States Conference of Bankers Associtions and $325 to others. A Planning
Guide and film script is provided with
each print, and additional guides are
available for 50 cents each (100 copies,
or more, 45 cents each).
Write the Graduate School of Bank­
ing, 122 West Washington Avenue,
Madison, W I 53703.

Federal Reserve Bank of St. Louis

“We are an $800 million bank with
online CIF. In tune with our fastmoving customers today. Ready for
EFTS tomorrow. It’s an NCR system.”
Robert T. Golitz, Vice President
Winters National Bank and Trust Co., Dayton, Ohio
To offer financial services wherever the future requires, a bank will need
records that are properly organized and related. And instantaneously
accessible. A bank will need an online Central Information File.
Like W inters' Customer Integrated/R eferenced File, designed for big
banks by EDP Corporation and NCR.
Already, W inters is providing consolidated “ b a n k-a t-a -g la n ce ”
statements to its customers. And online services from tellers' stations
and the backoffice. P oint-of-sale check guarantees and electronic
transactions are an easy step away.
NCR is the com pany that perfected the com puterized Central Information
File. The NCR system is sim ple, effective and fully matured. It can
vary to accom m odate banks of any size. Online or
For more inform ation, phone your NCR representative.
Or write to NCR C orporation, Dayton, Ohio 45479.


Complete Computer Systems

MACHA Supplies Ads, TV Commercial, Brochures, Other Marketing Aids to Banks
a i d s for ail media
are offered banks that belong to
the Mid-America Automated Clearing
House Association (MACHA), head­
quartered in Kansas City. MACHA is
the largest ACH in the U. S. in terms
of number of participating banks, with
76% of the 1,844 banks in its territory
signed up. The ACH—incorporated in
January, 1975, and operational since
last July— covers western Missouri,
Kansas, Oklahoma, Nebraska and Iowa.
MACHA officials believe that before
any bank can become successful in sell­
ing automated payroll and other ACH
systems to customers, it must educate
the public. Therefore the ACH has pre­
pared several marketing tools for its
members. For instance, it has three
audio/visual presentations banks can
use to enhance their own marketing
programs. According to MACHA, these
are particularly effective when used at
meetings of civic groups such as Kiwanis, Lions and Rotary clubs and
chambers of commerce. What’s more,
says MACHA, if a bank furnishes a
speaker with such presentations, it
could possibly sign up new business on
the spot.
MACHA suggests that the educa­
tional value of these programs is per­
fect for those times when bankers are
called on to speak at their area schools.
As MACHA points out, giving these
audio/visual programs at schools not
only will help educate a community’s
future business people, but it also could
be an opportunity to sell an entire
school district on automated payment
Probably the best of these presenta­
tions, continues MACHA, is a 16mm
full-color film dealing with MACHA’s
role in banking’s electronic future. It
explains in detail the benefits of auto­
mated payroll deposits, pre-authorized
credits and Bill Check. MACHA says
the film already has proved to be
popular among bankers, and it also can
be an effective presentation for cus­
tomers. This presentation also is avail­
able in 8mm cassette form.
Also available from MACHA is a
consumer slide presentation which it
describes as “the perfect supplement
for a talk or forum discussion on bank­
ing. Exposure to the latest trends in
the financial industry would be of par­
ticular benefit to young people since it
is they who will be affected greatest
by electronic banking.”
A third presentation available from
MACHA is a comprehensive slide show
a r k e t in g


Federal Reserve Bank of St. Louis

All that w riting, figuring,
sighing, licking of stamps
and envelope flaps . . .

Who NEEDS it?!!
Especially when there’s a new easier way to pay your
regularly recurring bills!
Companies throughout
Mid-America are offering
their customers a new
bill-paying service
to save time, money j
and effort.

Every month, wl
your reg ularly r
Examples of bills which you may choose to pay this way are:
loans, utility bills, leasing fees, installment payments, mort­
gages and insurance premiums.

Simplify your life! Let us pay yo ur bills!
Never allow the "bill-paying blues” to ruin another perfectly
good month!

You call the shots. We keep track of the score!
For more inform ation, call us!

This is s a m p le o f n e w s p a p e r a d M A C H A


plies its m em b ers. This a d describes a u to m a tic
b ill p a y in g concept a n d its b en efits.

produced by the National Automated
Clearing House Association (NACHA).
Three cassette tapes are available with
these specific audiences—bankers, cor­
porations and consumers. As MACHA
points out, these programs will help
banks acquaint present customers with
the need for automated services and
also can help banks attract new busi­
MACHA also has put together three
informative brochures for banks that
want to give customers specific infor­
mation on automated payment systems.
MACHA believes these brochures make
great selling tools because they explain
the direct benefits received from an
ACH. There’s space on each brochure
for imprinting individual bank logos.
One brochure is specially designed
for use by bankers who call on corpo­
rate and business customers. Entitled
“How Your Company and Your Em­
ployees Can Benefit From Automated
Payroll Deposits,” it explains the bene­
fits of automated payroll deposits as
well as pavment of pre-authorized re­
curring bills such as insurance premi­
ums, mortgage payments, installment
loans and utility bills. The brochure
illustrates today’s system of traditional
paper checks and compares it to the
new APEX (automated payments ex­
change) system offered by MACHA

Another brochure is designed to be
a statement stuffer. Called “Managing
Your Money,” it explains to the cus­
tomer, in general terms, the clearing
house, its capabilities and the benefits
of automated funds transfer.
The third brochure— “Announcing a
New Service (now available to every
employee with a bank checking ac­
count)—has the objective of selling
automatic payroll deposits to em­
ployees. MACHA believes this material
will benefit firms that have decided to
use the automated payroll system and
want to explain its benefits to their
employees. The brochure stresses such
benefits as greater safety, more con­
venience and speedier deposits.
Because many banks without ad de­
partments have asked MACHA’s help
in developing local advertising, the
ACH has put together a series of ads
on direct payroll deposit and automatic
bill paying services. These ads, says
MACHA, are ideal for local newspapers
and other print media. They’re avail­
able in a special Ad Mat Kit containing
three formats. One explains the auto­
matic bill paying concept and its bene­
fits. The other two describe direct pay­
roll deposit, one elaborating on the
benefits of direct deposit for the com­
pany and the other relating benefits to
the employee. Two copies of each ad
are in the kit.
The newest MACHA publication for
its members is a brochure called
“E .F.T .S. . . . and how it affects YOU.”
It’s to be used as a customer contact
guide and is written in a simple, direct
tone to make the understanding of
automated services easy for customers
and employees.
MACHA recommends that banks
supply their tellers with these booklets
because they serve a dual purpose:
Thev help tellers answer customer in­
quiries about these services, and they
can be eiwm to customers so that they
can be studied.
The television medium hasn’t been
forgotten by MACHA, which, in co­
operation with its ad agency, John
Quastler & Associates, created a com­
mercial about direct payroll deposit.
The 60-second spot features Jim McCrill, moderator of the top-rated TV
game show, “Celebrity Sweepstakes.”
The commercial was video taped in a
Kansas City TV station, and an elabo­
rate set was designed especially for it.
This set also was used as the back­
drop for a series of marketing meetings
MACHA held this February and March


FI F fT R O N ir

MmtaLtAmT^mTM I % \ # 1 ^1A ^HT




k lU

r .

mJßä Mil n|lm l 1 n|\JI

"The Extended Forecast"
W e usually k n o w about today and
w e can be reasonably sure about
to m o rro w but w h a t about "th e
e xtended fo re c a s t” ? W e w a n t to
k n o w about the long range outlook,
w h e th e r it's th e w ea th e r, the
econom y, or th e shape of things to
com e.
W e at The Fourth are not seers,
b ut w e are co nsta ntly studying and
preparing to guarantee to p service
to our custom ers. W e are not just

a tte m p tin g to keep pace w ith the
trend — w e are energetically
m arshalling our forces in productive
pioneering. W e w a n t to be am ong
the firs t but only if it m eans b etter
service to our cu stom ers, our bank­
ing friends, and th e ir custom ers.
One such step fo rw a rd has been
The F ourth's plan to develop a
n e tw o rk of ele ctron ic banking te r­
m inals. This m ajor c o m m itm e n t to
electronic banking is an advance­
m en t in w hich our fe llo w Kansas
bankers can share. Join us in facing
th e challenges o f a n e w banking
w orld, m eeting th e c o m p e titio n of

o the r financial and non-banking
institutions, and m o st im portant,
taking banking to the people.
Electronic banking is only a part
of "th e extended fo re c a s t” . There
are a lot of new and exciting
challenges ahead of us. A part o f the
fo re cast is our prom ise to keep
abreast of the changes and to m ake
you our partner in progress.


Federal Reserve Bank of St. Louis


in Kansas City, Wichita, Lincoln, Neb.,
and Oklahoma City. They were de­
signed to help member banks plan and
implement a marketing strategy for
ACH services. The program included
answers to three questions: Where
have we been? Where are we now?
Where are we going? There was a re­
search report on “Consumer Acceptance
of Automated Payroll Deposit” by Tom
Weise, executive vice president, Com­
munity Response, Inc., Omaha. In ad­
dition, MACPIA advertising was spot­
lighted, and three topics were dis­
cussed: “Perspective: Success Stories of
Marketing MACHA,” “Adding Sex Ap­
peal to Your Marketing Plan” and

“Placing the ACH in Perspective With
the Entire E F T S Movement.”
MACHA also publishes a monthly
newsletter, Input, whose objective is to
keep the ACH’s members current on
all that’s new in the ACH field, not
only in MACHA itself, but in other
ACHs across the country. In addition,
MACHA has begun publishing an O p­
erations N ew sletter, which explains
procedure difficulties as they arise. * •

Let our
billion dollar
help your bank
profit. Call
W ilbur Hufham (205/832-8450),
a member of our correspondent
banking team.
First Alabama Bancshares, Inc.
Affiliate Banks
First Alabama
First Alabama
First Alabama
First Alabama
First Alabama
First Alabama
First Alabama
First Alabama
First Alabama
First Alabama
First Alabama
First Alabama
First Alabama

Bank of Montgomery, N. A.
Bank of Birmingham
Bank of Huntsville, N.A.
Bank of Tuscaloosa, N.A.
Bank of Dothan
Bank of Selma, N.A.
Bank of Gadsden, N.A.
Bank of Athens, N.A.
Bank of Baldwin County, N.A.
Bank of Guntersville
Bank of Hartselle
Bank of Phenix City, N.A.
Bank of M obile County

R rs t/U a b a m a
Federal Reserve Bank of St. Louis

Medical Payments Via ACH
Because of the ACH movement,
Kansas Blue Cross and Blue Shield
subscribers now can authorize auto­
matic payment of insurance pre­
miums through their local banks.
The new service is a result of the
close cooperation of Merchants Na­
tional, Topeka, the Mid-America Au­
tomated Clearing House Association
(MACHA) and National Sharedata
Corp., the Western Union telepro­
cessing division that performs facil­
ities management services for banks.
This application of automatic bill
paying should generate more than
40,000 electronic debit entries per
month, says MACHA, and affect
nearly every bank in Kansas. The
hub of the operation, located within
the Topeka computer facilities in
Merchants National, is an IBM/36040 computer with extended core.
National Sharedata manages Mer­
chants National’s computer facility.
Clearance is handled automatically
Even cemeteries are availing
themselves of ACH services. MACHA
reports that U. S. National, Omaha,
signed up West Lawn Cemetery as
its first customer on its ACH system.
And the cemetery not only is offer­
ing direct deposit of paychecks to its
40 employees, but also is selling
grave sites and grave markers on a
monthly, pre-authorized payment

HC's Share-Draft Program
Is Approved by Ala. CU League
B IR M IN G H A M — T h e
Credit Union League has offered its
members use of the share-draft system
of Central Bancshares of the South, Inc.
The HC will be the facility handling
member drafts for the league.
Central’s share-draft program allows
members of participating credit unions
to have direct access to their share/
savings accounts. Formerly, members
had to visit or phone their credit union
offices to withdraw share funds. They
now will receive a book of drafts allow­
ing withdrawals.
Through the share-draft system,
credit unions throughout the state will
have immediate access to process mem­
bers’ share drafts through Central Bank
data centers located in Birmingham,
Montgomery, Decatur and Mobile. Al­
though more than 70% of the state’s
credit unions are located in those areas,
the services now are available to those
in outlying areas.
Training sessions for the program
will be held at league headquarters
here. Credit union technical representa­
tives will meet with Central Bancshares
technicians to begin implementation of
the program.
Federal Reserve Bank of St. Louis

PIPS... the banker’s answer to
automated deposit and payment
PIPS* REMITS* and related FIS development prod­
ucts provide the basis for long range EFTS product
planning. Our modular approach to payment sys­
tems offers low cost entry into funds transfer serv­
ices and provides the accounting links to internal
applications such as DDA, Savings, Mortgage and
Instalment Loan.
PIPS, for example, takes the guesswork out of
ACH and NACHA processing requirements. With
more than fifty banks currently installed, you’re
no longer a pioneer. PIPS modules make it easy
to automate direct deposit of payroll, preauthor­
ized payments, internal transfers, and to
guarantee social security deposits. The
result: Increased fee income and reduced
y .4
operational costs as paperless transaction volume grows.
PIPS is another development
product from FIS... your total EFTS

Financial Industry Systems
150 Windsor Street, Hartford, Conn. 06115. (203) 728-4271
A partnership of Hartford National Bank &Trust Company
and Martin Marietta Corporation.

‘ Paperless Item Processing System
‘ Remote Item Transaction Switch

Variety of EFT Package Plans
Available to Correspondents
Most include A TM ¡POS capability, some systems statewide


HE SCRAMBLE is on among upstream correspondents to provide EFT
capability to downstream correspondent banks. Although some of the
programs are not yet operational, most have been presented to prospective
participants and arrangements are being consummated.
Some programs are limited to metropolitan areas of large cities, others
are statewide, with plans for enlargement to regional status. Virtually all
offer a stable of basic services, most with on-line capabilities.
On this and the following pages, Mid-C ontinent Banker presents capsule
reports on services being offered or planned by large banks to their cor­

PO S, A TM Plans for Correspondents

Bank Has EFT for S&Ls

O ffered by Continental of Chicago
ONTINENTAL Illinois National,
Chicago, offers its correspondents
two E F T S packages—POS and ATM.
The POS service is presently in op­
eration at Chicago metropolitan area
food stores. The key to this system is
the Automatic Banking Card, which
participating banks make available to
their customers. The cards provide ac­
cess to check-cashing privileges for cash
or purchase at any of the stores.
Participating banks determine eligi­
bility and check cashing limit criteria
and Continental supplies the line net­
work, terminal technology, Automatic
Banking Card technology, Automatic
Banking Cards, documentation, systems
security and marketing support.
The POS/ATM service, which in­
cludes the Automatic Banking Card,
enables correspondents to provide thencustomers with a number of banking


Federal Reserve Bank of St. Louis

number of modules needed to provide
the level of service desired.
Banks participating in the POS/ATM
service can purchase or lease ATM
units or lease them with option to buy.
All POS terminals are owned by Conti­
nental and supplied to merchants.
Promotional support includes infor­
mation brochures to be used as state­
ment stuffers to explain automatic
banking. They include applications for
cards. Card carriers for mailing banking
cards to customers are also available, as
are standard mailers for personal iden-

services, including ready identification
of the customer by tellers and service
personnel for check cashing and access
to ATMs for deposits, withdrawals,
payments, transfers between accounts
and check-cashing privileges. The POS
services described above are also of­
According to Continental, the POS/
ATM service is versatile enough to
adapt to any need, any bank and com­
plete enough to offer complete systems
support, card issuance, marketing as­
sistance, machine service training, and
lease/purchase options.
Costs of the services vary, depending
on which of the two is selected. The
services are modular in design. Par­
ticipating banks buy only the services
they think they will need and pay only
for what customers use. Specific costs
for any one bank are based upon the

Continental Illinois National, Chi­
cago, is offering an EFT service
called “Impulse 2” to the savings
and loan industry. The service is de­
scribed as offering a full range of
financial transactions through Con­
tinental’s POS/ATM network in the
Chicago area.
Components of “Impulse 2” in­
clude debit cards, financial transac­
tion terminals, the merchant net­
work, marketing assistance and com­
puter programs.
The service is available in two
modules. Module One consists of
savings account withdrawals and
Module Two offers savings account
deposits and withdrawals and NOW
account deposits and check guaran­
Both modules are based upon on­
line real time systems that are avail­
able at all times that the network’s
200 POS food store locations are
open for business.
ATM service is also available on
an on-line basis.


Federal Reserve Bank of St. Louis

AUTOVEYOR . . . A Unique new overhead system that makes
sense and saves you money... costs 25 to 33% less than current
systems and gives you greater efficiency with fewer problems.
The Autoveyor modular system can be installed in a week
and a half with no trenching, no interruption to business.
Attractive and practical, it costs less to operate; has fewer
malfunctions and maintenance problems; is easier for cus­
tomers and tellers; saves time and space . . . and it’s a
maximum quality system.
Those are some of the advantages!
Get the full story on
Autoveyor now . . . com­
pare it with any other
system . . . then decide.
200 Jimson Road,
We think you’ll pick the
Cincinnati, Ohio 45215
B A V IS Phone: 513/733-3589
system of the future.

tification numbers, which are mailed to
customers separately from the plastic
Receipt forms for use in ATMs and
envelopes for making deposits are avail­
able, as are promotional materials, in­
cluding informational newsletters and
advertising materials.
Participating banks are asked to sup­
ply the location and construction neces­
sary to house ATMs, daily servicing
and balancing of ATMs and account

maintenance information for the POS/
ATM information file.
As of last month, four correspondent
banks were participating in the Auto­
matic Banking Card system.
Continental Bank has also developed
a service called Continental Payday,
which is a direct payroll deposit pro­
gram for correspondents utilizing the
ACH to switch deposit information via
tape input to customer accounts at 70
area endpoint banks. * •

2-State ATM Network
Offered by Central Trust
To Correspondent Banks
Re-entry of Reader-Sorter Rejects
Correcting Encoding Machine Errors
Document carriers played a significant roll in the
re-entry of two billion plus rejects last year. Banks with
automatic check processing equipment that are not
using document carriers should consider their use for
correcting reject items.

Important Features
• Accurate, uniform glue lines provide a strong bond
and there are no glue lines to encode over.
• Use of Photo-Vu and Glass-Vu top sheet paper
creates ease in m icrofilm ing and reading and freedom
from static electricity.
• On all Glass-Vu and Photo-Vu document carriers the
bottom of the top sheet is trimmed from the
encoding area to provide an ideal surface for
encoding. These styles are especially recommended
for the new NCR-775 proof machine.
• Forms 0-871 and 0-851 are constructed of a special
heavy duty Photo-Vu paper. The front and back of a
document may be microfilmed from both sides
w ithout removal from the carrier.

Automation Forms Co. correction labels are manufac­
tured from a special material that was selected for its
excellent surface finish for encoding as well as
excellent shielding of original encoding. An inexpen­
sive sure way of correcting documents.
AF correction labels are furnished in dispenser boxes
with adhesive on the bottom for ease of use at various
work stations.

Fast Removal of Encoding
Automation Forms Correction Fluid removes ribbon
encoding with a fast drying solution so that re-encoding
will be sw ift and accurate. The use of bottled solvent
insures a clean eraser each time as the dauber is
dipped into the solution and the ribbon residue is
captured by a small but powerful magnet.


P. O. Box 401786 • Garland, Texas 75040
Phone (214) 272-8531

Federal Reserve Bank of St. Louis

Trust, Cincinnati, can participate
in a regional ATM network established
by the bank last October. A point-ofsale interchange system is expected to
be available by late summer.
The network allows customers of par­
ticipating banks to withdraw funds
from their checking accounts or secure
cash advances against their credit card
accounts on a 24-hour-a-day basis. F if­
teen ATMs are now in service, 12 in
Central Trust banking centers through­
out Hamilton County, Ohio, and three
in Kentucky at installations of Coving­
ton (Ky.) Trust. Other banks in the
regional trade area are expected to
announce participation in the network
in the near future, according to a
Central Trust spokesman.
Central trust defines its regional
trade area as extending 25 miles south
of Cincinnati and 25 miles north of
Dayton, Ohio. Present plans confine the
reciprocal network system to these
limits, within which customers of par­
ticipating banks are said to conduct 99%
of their banking transactions.
Area banks join the network for a
five-year period on an annual fee basis.
Correspondent banks outside the re­
gional trade area are offered systems
and marketing assistance on a con­
tractual plan.
The POS system to be offered this
summer will be an expansion of Central
Trust’s check cashing authorization
program now in operation in 47 super­
markets in the greater Cincinnati area.
Expansion plans include additional re­
tailers as well as correspondent banks,
whose participation will be integrated
into the system on a transaction fee
Since Central Trust’s E F T package
is based on an automated C IF, the


First of K.C. to Offer EFT
First National, Kansas City, is
making plans to offer an EFT ser­
vice package to its correspondents
that will include access to the Fi­
nancial Communication Services
( FC S) five-state ATM/POS network
as well as other services.
The bank is currently offering a
CIF system for demand deposits and
savings. Accounts are accessed for
inquiry and memo posting via CRTs
and teller terminals. Thermal print­
ers are also utilized to produce an
“instant statement.”
The bank is planning to bring all
retail applications under its CIF
system, including a new overdraft
banking program, and then offer a
combined descriptive statement.
Other tie-in services to the FCS
offering are currently under consid­
eration, a spokesman said.

timetable for implementation of the
system by a correspondent is deter­
mined by the correspondent’s capability
to convert to C IF—usually from four
to six months.
Central Trust supplies full marketing
support to network banks, including use
of the name “Day and Night Bank,”
as Central Trust’s automated teller ser­
vice is known. Systems and marketing
assistance in the production and distri­
bution of debit cards are also a part
of the E F T package.
All literature and print advertising
previously produced by Central Trust
for its own use is offered for adaptation
by correspondents, along with a record
of Central Trust’s usage of the ma­
terials. A history of the bank’s experi­
ence with various promotional concepts
and employee training programs is also
made available, along with accessibility
to materials used therein.
Network advertising is produced
through Central Trust’s advertising
agency and new promotional or edu­
cational literature is produced so as to
be usable by interchange banks and is
offered to them prior to production. # *

Wright Patman Dies
W r ig h t
P a tm a n
(D .,T e x .), f o r 12 y e a rs
Ho use

B a n k in g


C u rren cy C o m m i t t e e
u n til b e in g o us ted la s t
y e a r , d ie d
of pneu­
m o n ia
M a rc h
w a s 8 2 . M r. P a tm a n
h a d just re c e n tly a n ­
nou nced

p la n s


re ­

tir e
fro m
w h e n his c u rre n t te rm
e x p ire d

n ex t Ja n u a ry .


“Thanks to First Security,
we got in the Bank Am ericard
business without getting in the
credit card business?
Alpha M. Hutchinson, President
Citizens Bank of Morehead, Kentucky

Citizens is a thriving, $14 million bank
in a highly competitive two-bank market. Mr.
Hutchinson feels that the bank’s strong growth
record may be attributed, in part, to its initiative
in bringing new services to Morehead. Example:
the First Security BankAmericard.

“Prior to 1969, there was no national charge
card available through a Morehead bank. We had long
considered introducing a card, but becoming a
BankAmericard center required an investment in
people and money we simply couldn’t justify.
“First Security proposed an extremely attractive
alternative. We would offer the First Security
BankAmericard through our bank, but they would
handle processing of applications, billing, delinquencies
—all the headaches.
“In August of 1969, we sent a few people to
First Security for a day of training, began contacting
local merchants about participating, and started
promoting the card to our customers. The program
was enormously successful. Today, between 30% and
40% of our customers have our BankAmericard. The
customers are happy. The merchants are happy. And
we not only have another source of income, but we
have a service that attracts new customers.
“The BankAmericard program is typical of
our correspondent relationship with First Security.
We like doing business with them. They’re professional,
they’re cooperative, they understand our business.
And they’re accessible—they’re here regularly in
person, and we use their toll-free number a good deal
to get information or solve problems.
“I’d have to say First Security has made a real
contribution to the growth and success of Citizens
Bank. I expect to be working with them for years
to come.”
To learn more about
BankAmericard and other
First Security services,
call Sam Adams, Vice
President, Correspondent
Services, toll-free:

(800) 432-9543.

First Security
Lexington, Kentucky

Member F.D.I.C.

Big enough to bend a little
Federal Reserve Bank of St. Louis


EFT C ap ability Readied
By American N a t'l, St. Joe

Package Plan for EFTS Capability
O ffered by National Boulevard, Chicago
PACKAGE pointing to an E FT S
capability was offered to corre­
spondents of National Boulevard Bank,
Chicago, in January.
According to William R. Beckmann,
director, advertising and public rela­
tions, services available to correspon­
dents include demand deposit accounting-Mach I with overdraft banking,
account reconciliation and customer ac­
count analysis; off-line savings—pass­
book or statement; installment loan
with simple interest, dealer reserve and
charge-off module; real estate with
monthly billing or coupons; commercial
loans; CDs; payroll; general ledger;
intercept of Fed cash letter (on us
items) with intercept of payment from
the Fed and intercept of transactions
from ACHs; and clearing of transit
items through the Chicago CHA, the
Fed or by direct sendings to corre­
spondent banks.
Future services include off-line C IF,
retrieval of signature cards with the
use of a microfiche, in-house system to
generate computer output microfilm for
storage purposes, a building manage­
ment package to process rent receipts
and origination of ACH paperless
In July, the bank will begin an audio
response system through the use of tele­
phone equipment to establish a basic
system for C IF and at that time a
demand deposit and savings on-line
inquiry system using touch-tone phones
will be available to correspondents.
All or part of the bank’s applications
can be bought by a correspondent, de­
pending on the compatibility of the
equipment the customer is using with
National Boulevard’s equipment, Mr.
Beckmann said.
About a year ago, National Boule­
vard implemented a new demand de­
posit accounting package that provided
a less complicated system for bank op­
erations, Mr. Beckmann said. The sys­
tem has the ability to process DDA
and overdraft checking on one system
with less chance of error. Other ad­
vantages include a greater amount of
historical information obtainable in lieu
of just the closing balance, the elimina­
tion of several reports that were pre­
viously done manually and the ability
to interrogate the customer reference
file so that name and address changes
and overdraft checking are unified.
Mr. Beckmann said the bank also
installed an installment loan package
that includes a customer module to a


Federal Reserve Bank of St. Louis

charge-off module including reports on
late charges (waived and reversed),
dealer reserve, credit life, collision in­
surance and total outstanding loans. A
loan exceptance report is generated
with any unusual activity; as is a new
account journal that gives the name of
the customer, interest accrual on the
loan, rate of interest and other perti­
nent information. Also, the system pro­
vides physical damage reports, chargeoff lists, trial balances, paid out letters,
late notice warning of assessments, co­
maker notices, monthly past due re­
ports, monthly repossession reports^
monthly accrual reports and six or more
different analyses reports.
Mr. Beckmann says the bank plans
to offer its services in the midwest.
Marketing assistance will be available
in the future. * *

American National, St. Joseph, Mo.,
is offering correspondents in Missouri,
Kansas, Nebraska and Iowa the ability
to handle entries processed through
the Mid-America Automated Clearing
House Association, such as direct de­
posits, transferring of funds and auto­
matic debit and credit entries. The
bank also has ATMs with on-line capa­
bilities, which will be offered to cor­
respondents this year.
The bank expects to offer the ability
to inquiry or post entries directly into
its computer in the near future through
customer bank communication termi­
nals or through single-pocket proof ma­
chines. Entries into the computer can
soon be made from POS terminals,
which will be installed by American
The bank’s marketing department of­
fers aid to correspondents in their ef­
forts to familiarize and educate cus­
tomers about the effects E F T S will

ChecOKard Guarantee, Verification Plan
Franchised in Oklahoma by Liberty Nat'l
N ON-LINE computer-terminalbased check guarantee and verifi­
cation system called “ChecOKard” is
being franchised in Oklahoma by
Liberty National, Oklahoma City. The
bank franchises the ChecOKard name
and coordinates issuing the check guar­
antee and verification cards for the
service on behalf of participating banks.
Initial participation included 20 banks
in the greater Oklahoma City area, but
the service is available to any bank in
the state, according to J. W. McLean,
Liberty National’s chairman.
The system is operated by National
Sharedata Corp., an organization spe­
cializing in data processing services for
The ChecOKard service consists of
a card with a private identification code
issued to customers of participating
banks. It provides immediate check
guarantee and verification to merchants
at the point-of-sale through a telephone
terminal hooked up to National Sharedata’s computer system. ChecOKard
further provides a guarantee by the
sponsoring banks that the customer’s
check will be verified for any amount
and guaranteed up to $100.
The system was designed to result
in check-cashing ease for consumers,
who were often held up in register


lines in the past waiting to present
drivers’ licenses and as many as five
credit cards for identification. In some
cases, customers had to submit to being
photographed or fingerprinted before
their checks would be accepted.
The obvious benefit to retails is the
reduced risk from bad checks, Mr.
McLean said.
During interviews conducted with a
cross-section of retail merchants in re­
searching the need for a check verifi­
cation-guarantee service, it was dis­
covered that the three most frequently
in accepting
checks for payment of goods and ser­
vices were (1) merchants being forced
to adopt expensive systems of positive
identification because of the bad check
problem; (2) the resultant slowdown in
the movement of customer traffic, caus­
ing understandable irritation on the
customer’s part; (3) and the increasing
expense of the identification systems
themselves beyond the losses incurred
from bad checks.
Marketing support for ChecOKard
included large two-color newspaper ads
in Oklahoma City announcing the ser­
vice with a headline stating “Coming
soon . . . ChecOKard, the card that
tells everyone your check’s OK.” The
service began late last year. • #


Here’s how to stay
open for business even when
your doors are locked.
It’s easy.


W ith Moneycardand
the 2 4 - H o u r M in iBank, your bank can
be open fo r business
e ve ry second o f the
day. A n d fo r a i l kinds
o f transactions . . . w it h ­
drawals, deposits, trans­
fers, even loan payments.
An offer like that will
make yourcustomers happy
that th e y’re banking w ith
you. And i t ’ll make your com­
p e tito r ’s customers wonder if
they’re banking in the right place.
Meaning more business fo r you.
And more profits.
Moneycard is your ticket to
m ove r ig h t in t o a u to m a te d
banking and EFTS. Quick and
easy. And i t ’ll be a move fo r
the better, too.
S im p ly sta te d , th e p u b lic
likes M o n eyca rd enough to
move the ir account to the bank
that offers it.
Which b rin gsu sto an o th e rp oint:
W e ’ve got a proven promotional
campaign to let the folks in your mar­
ket know that Moneycard is there. And
that you’re the bank that has it. Every detail
o f the campaign is customized fo r you. And every
Moneycard you issue w ill have your name on it.
Don’t let operational thoughts hang you up either.

Because M o n eyca rd w i l l
w o rk w ith all kinds o f equip­
ment . . . Docutel, Diebold,
Mosler, whatever is most com­
patible w ith your total system.
We can even arrange fo r
the purchase or lease of your
And because w e ’ve been in
the automated banking busi­
ness fo r so long, we can show
you h o w to f in e - tu n e y o u r
whole Moneycard program to
keep it running smooth.
Okay, if you’veconsidered auto­
mated banking, but you still aren’t
convinced about what it can do fo r
your business, w e ’ve got just the
man to call:
Jack Fleischauer, 1-800-482-8484.
Hecan treat your questions
w ith answers based on experienceand results. And hecan
even let you in on a few se­
crets about what the futu re
holds in store fo r Moneycard.
Which, incidentally, might
have something to do w ith
the futu re of your bank.
You’ll be impressed.
Moneycard. For both the bank and
the customer . . . I t ’s Great To Know You G ot It.


Bank & T ru s t Company, N. A.

a fabco company
L ittle Rock, Arkansas

Moneycard. For both the bank and the customer. . . It’s Great To Know You Got It.
Federal Reserve Bank of St. Louis




1st Oklahoma Bancorp. Offers EFT Plan
To Banks, Thrifts, Credit Unions in State
IR ST DATA Management Co.
(F D M C ), Oklahoma City, a divi­
sion of First Oklahoma Bancorp., is
offering an on-line E F T network to fi­
nancial institutions, including banks,
thrifts and credit unions.
The firm introduced an automated
C IF system in 1974. During the fol­
lowing year, the firm converted 15 of
its bank customers to a new on-line
C IF and, with those conversions, has
set a network in place spanning the
entire state of Oklahoma. Such an un­
dertaking was necessary to achieve a
true POS system that would have state­
wide and regional acceptability, ac­
cording to a spokesman for the firm.
Fifty more FDM C customers will be
converted to an on-line environment
during 1976. FDM C is in the process
of establishing its first POS operation
this year in cooperation with Stillwater
The POS program is called SCS
(Service Card System). It is said to be
unique in that a participating financial
institution can maintain its local identi­
ty by issuing plastic cards of its own
design. Each design includes a small
“SCS” logo, which indicates to mer­
chants or financial institutions located
anywhere on the network that the cus­
tomer can access his accounts for on­
line transactions.
FDM C, in conjunction with com­


mercial banks participating in the pro­
gram, will place terminals in major
shopping areas throughout Oklahoma
so participants of SCS can use their
cards in areas where they shop and
At the present time, FDM C is pro­
cessing more than 180,000 customer
accounts through the on-line SCS sys­
tem, which represents about 16% of its
customer base. This figure is expected
to increase rapidly as the system ex­
pands. * *

First B a n k m a tic
s ta n d in g
N a t'I's

in s ta lla tio n


P a rk w a y
a re

F ac ility

(fro m

is lo c a te d

a d ja c e n t



K a nsas

B e rn a rd

in fre e ­

C o m m e rc ia l
C ity ,

K an.

Ruysser, pres.;

Don B arnes, s.v .p .; M a x

D icke rs on, s .v .p ., cor­

re s p o n d e n t


d e p t,



C h e n o w e th ,

v .p ., EFTS ta s k g ro u p ch.

O perated by Commercial N at I, KC, Kan.
ANKMATIC is the name chosen
for an on-line 24-hour ATM ser­
vice expected to begin operations this
month in Kansas City, Kan., operated
by Commercial National.
Bankmatic is said to be the first sys­
tem of its kind to operate through a
commercial bank’s automation facilities
in the state of Kansas.
The first unit will be located adja­
cent to the bank’s Parkway Facility,
which is located in a growing retail
area within a dense residential market,
according to Bernard Ruysser, Com­
mercial National’s president.


American National, Chattanooga, offers its correspondents a number of E F T
services, both on-line and off-line, according to James E. Goodner, executive vice
president of the bank administration division.
Mr. Goodner says the most accurate measurement in the success and acceptance
of automation in the financial industry is the ATM, which is being utilized by
more people each day. The system is available to American National’s corre­
spondents, either on an on-line or off-line basis, along with marketing support
American National plans to offer its correspondents support for “Signet,” the
forthcoming national debit card from Interbank Card System.
Mr. Goodner says the bank supplies its correspondents with the following E F T
On-line— Merchant check verification; merchant check guarantee; charge card
authorization; interface to national debit card systems; interface to ACHs; un­
manned teller machines (mini-branch or stand-alone); manned teller machines;
full-function POS terminals; audio and video data entry and inquiry for C IF,
DDA, time deposits, loans; remote computer attachment for check processing and
Off-line— Social security direct deposit; payroll direct deposit; microfiche ser­
vices; and internal funds transfers (demand-to-savings and demand-to-loans).
The bank also offers leasing of E F T equipment.
Federal Reserve Bank of St. Louis

: ,

Bankmatic System to Start This M onth;

American N at I Lists EFT Services


* .7»

E F T S Task Group Chairman Robert
W. Chenoweth said the bank stands
ready to assist correspondents in estab­
lishing their own Bankmatic systems.
The program for correspondents in­
cludes liaison service with manufactur­
ers in selection of ATM equipment; site
analysis and recommendations; archi­
tectural plans for drive-up or walk-in
structures; interface coordination of
ATM units with Commercial National’s
computer; consultation on selection of
ATM customer procedures; consumer
notification and information data; total
marketing support; and continuing con­
sultation and service by Commercial
National’s E F T S task group.
Participating banks may use the
Bankmatic logotype and Commercial
National will arrange with manufac­
turers for production of cards and other
supplemental materials, including pre­
mailer pieces, secret personal ID num­
ber mailers, card mailers, notification
forms and envelopes and promotional
literature. If desired, Commercial Na­
tional will furnish Bankmatic banks
with customized newspaper ads, TV
and radio commercials and outdoor ad­
vertising designs.
Commercial National plans to add
supplemental Bankmatic installations
in several non-banking locations to
serve specific segments of the commu­
nity and further expand its marketing
background. At present, plans call for
units in a major metropolitan retail
center and an industrial area.
Bankmatic customers use plastic
cards to withdraw cash from savings or
checking, to make deposits, transfer
funds from checking to savings or from
savings to checking or to make balance
inquiries. • *


Som e o f die ways to decide w hether an
A u tom aticleller is in the sam e league
w ith Diebold TABS Total A utom atic
Banking Systems*
If you’re thinking about an automatic teller, make sure you get all
the established advantages of Diebold TABS Total Automatic Banking
Systems. For example: □ Diebold TABS was the first system installed
for shared use by multiple financial institutions. □ Diebold TABS has
a programmable video instruction screen. It enables you to cross-sell
your other services—it also lets you change the transaction selection
any time you want to. □ Diebold TABS has been interfaced w ith
main frames and communications protocol by IBM, NCR, Burroughs
and Honeywell. □ Diebold TABS is operating on-line. Is also available
in off-line and on-line with off-line reversion modes. □ Diebold TABS
is backed by a complete Diebold commitment, one that includes a
softwares design and engineering staff, marketing support, and a
qualified service organization. □ Diebold
TABS is available in walk-up, drive-in
or lobby unit models — over 500 units
currently installed or on order. □ Diebold
TABS Total Automatic Banking Systems:
performance is their best recommendation.
Federal Reserve Bank of St. Louis








D o rò u n d erestim ate
T h e S p irit o f A m erica*
Frankly, we were a little surprised. And
pleased. Our Spirit of America program
has received excellent acceptance during
the short time its been available. Spirit of
America is really quite a complete
Bicentennial program featuring our Spirit
of America checks plus a special cover,
Federal Reserve Bank of St. Louis

enclosure and simulated wood grain box.
And for your bank, there are commemorative
prints, scrolls, posters, lobby displays, news­
paper ads and material for radio and TV.
If you haven’t already joined in the cele­
bration, ask your Deluxe representative
about this exciting new program.


Ift jWN
Ati/ m

Diverse ATM AAodels

Moneycard D ebit Card Interchange
Put Into O peration by W orthen Bank
HE F IR S T part of a new E F T
service being offered to correspon­
dents of Worthen Bank, Little Rock, be­
came operational recently. It’s called
Moneycard, a debit card operation.
Services available with Moneycard
include card production (with bank
logo), assistance in card base selection,
embossing, encoding, initial card issue
coordination, card control and card
base updating.
is described by a
Worthen representative as the corre­
spondents’ entry into a state-wide,
multi-bank, multi-vendor interchange.
The interchange is achieved by encod-


M o n e y c a rd

d es ig n

fe a tu re s



G e o rg e

W a s h in g to n , inclu des lo g o o f p a r tic ip a tin g cor­
re s p o n d e n t


chisee, W o rth e n



re fe re n c e


fra n ­

B a n k, Little Rock.

ing Track III using the M INTS stan­
dard. Track I and ABA Track II are
also encoded.
The multi-vendor interchange con­
sists of seven Docutel ATMs and will
eventually include Diebold and Mosler
machines. The interchange began with
12 Arkansas bank participants operat­
ing 26 ATMs manufactured by Docu­
tel, Diebold and Mosler.
The interchange will be limited to
the state of Arkansas initially, but plans
are being made to expand to surround­
ing states. Interchange banks are
spread throughout the state and all are
expected to be operational with the
service by mid-May.
Marketing assistance provided by
Worthen includes an advertising pro­
gram with newspaper ads, radio com­
mercials, outdoor posters, employee
badges and counter cards. Employee
training assistance is also available.
Worthen also offers correspondents
volume price breaks on ATM receipts
and related supplies.
Most participating banks in the net­
work will operate their ATMs off-line,
but one will be operating on-line. Sev­
eral other participants are expected to
convert to on-line operation later. One
bank will be using one of its ATMs as
a stand-alone branch. * *

A u to m a te d
a b le

fo r

T e lle r

M a c h in e s


b a n k e rs n ee d th e m


(A T M s)
ty p e

a re


a v a il­

o p e ra tio n

fo r.

TOP: M o s le r's T e lle r-M a tic M a r k II u n it can be
in s ta lle d in sheds fo r d riv e -in o p e ra tio n as w e ll

Fourth National, W ichita, Makes Plans

as th ro u g h w a lls o f b u ild in g s fo r v e s tib u le or
lo b b y tra ffic .


B a n k in g

For A T M , POS Netw ork for Kansas

lo b b ies
ta in e d

D ie b o ld


u n it

o th e r

u n it security


T o ta l

lo catio n s
is r a t


support their ATMs even though they
are not IBM 3614s, which Fourth Na­
tional will be using. Kansas law states
that all off-premise ATMs must be
shared with other banks.
Fourth National is introducing the
network to the Wichita metropolitan
area this year but hopes to expand it
to other Kansas markets in 1977 and
eventually tie in with regional and na­
tional networks.
Both the POS terminals and ATMs
will be implemented through the use
of one of two plastic cards. One will
be Entrée, for use by customers wish­
ing to transact business through their
deposit accounts on a nationwide, and
even international, basis without the
difficulties involved in negotiating per­
sonal checks. Entrée is National BankAmericard’s debit card. * *

Federal Reserve Bank of St. Louis

d u rin g


d e s ig n e d

b a n k in g


fo r

w h e re



self-co n ­

a fa c to r.

B O TTO M : This D ocutel T4 ta b le to p

terminals will be established in
the Wichita, Kan., metropolitan area
this year by Fourth National.
At a series of meetings held for cor­
respondent banks recently, Fourth Na­
tional outlined the basic structure of
its network. By August 1, the bank will
introduce its debit card and install four
ATMs in its own facilities as well as
eight POS terminals in merchant loca­
By the end of 1976, the bank will
install an additional 22 POS terminals
and in 1977 it will install six more
ATMs in off-premise locations as well
as an additional 75-100 POS terminals.
The bank plans to offer its down­
stream correspondents full participation
in the POS terminal network and will

A u to m a tic

is d e s ig n e d


hours, ta k in g

M oney M a ­

custom er

trc ffic

lo a d

lo b b y

o ff

te lle rs .

Pomt-of-Sale Equipment

Elcom In d u s trie s , St. Looiis, m a rk e ts this cred­
it a u th o r iz a tio n te r m in a l to speed up a u th o r iz a ­
tio n p ro c e d u re s a t re ta il o u tlets . U n it
e r a te d by clerk, u tiliz in g custom er's
c a rd ,


trig g e re d


respo nds

w it h

a u th o r iz a tio n

a u d io
cen ter.

is o p ­
p lastic

m e ssa g e
U n it


serve as g e n e r a l p u rp o s e p h o n e.


12 Arkansas Banks Join A TM Netw ork
i i / Developed by Commercial Nat I Bank
W ELV E Arkansas banks are par­
ticipating in a statewide ATM net­
work, called the Arkansas Bank Inter­
change Group, developed by Commer­
cial National, Little Rock.
Customers of all participating banks
can make deposits or withdrawals from
checking or savings accounts or transfer
money from one account to another on
the machines of any of the participating
banks. Out-of-town customers can with­
draw as much as $100 from checking
The system is made possible because
all participants are using Diebold
TABS units. Each participating bank
designed its own debit card, but the
encoding and embossing for all cards is
done in Little Rock under the direction
of Commercial National.
The interchange evolved from the
work of a task force established by
Commercial National in 1974. The con­
clusion of the task force was that the
future trend of banking convenience in
Arkansas would best be served by a


G o o d fo r
c a s h a n y t im e , a l l
over A rk a n s a s .

state-wide debit card system.
Commercial National selected ATM
units and worked out the bugs in the
system before offering it to its corre­
spondents throughout the state. The
bank set up a card system that could
be used interchangeably between all
participants and worked out a market­
ing program that was offered to each
participant as it entered the inter­
Commercial National assists partici­
pants in the following areas: decisions
as to which customers should receive
cards; designing cards; working out
problems of costs; capital investment,
including leasing, to solve investment
problems of smaller participants; pro­
gram selling aids; employee training for
selling the service; and support for
local advetrising efforts. * *



Nov- í C w m B Í Mattonai
EasyChcek (4»*» cmi te» y»ti gi« cash
«sato® te áw daÿat ns<ßtin
d i» m m 4 * Mu. Wete pkmd to
announce the formahon of the¡ ■
Artes-«s Sank Sntechèmge Group."

We've.»snedhandsvidi) leadingissatethooujjfcuf thè -da»whfcb
haee aníomaíic tete) machines ititentote io CNBs báteteOH24i te pnsste'
bank«Monte»ibis gut noti-«vie®, Fot esesmfsfe, sìoutEasgOseok¡steste»
osici Works iost ttw sanse«ssa aseste;«terete nuroiotec tetes«ssisdoes
ttetet EassSank 24, Ano a < 1 ¡« oan $si «ashas^Srne*
LiSteRsxk... or menyothes eisìes. And Sai »fu®tbetegkitons
li: thè rate i‘\v monti» otite) banksolii te jatstig dseatesino
Nosevotecan tte cashanytte» voci ì testoi, citi osee/«te»teak
wsthyowCs neo o N -’ -m ! wX'-onfi)/■«'/, caref risai
someth«'«! Oteesosmite c-bastii


ann ounces

e x p a n s io n

o f C o m m e rc ia l

N a t'l

o f Little Rock's d e b it card service to s ta te w id e

. 9^


rv ^

_\oS °



L oó

V '
9 ve

0oí-a V ' j\ i°v



„ SW wA°

,ò®XV .teoS\o»G'C'e

* At e C o 'V òte<sS° 0ov"


; X

O®'. , xo ° x Ae-d A o'

Federal Reserve Bank of St. Louis


Our idea of
correspondent banking
Our people are real, live, experienced correspondent professionals, with
years of correspondent banking behind them. So, since they aren’t shiny new
management trainees or just goodwill ambassadors, they have the authority
to okay loans or services on the spot. Without going through a committee.

Because we work person
to person, eye to eye, with the
management of every corres­
pondent bank, right there at
the correspondent bank, things
get done faster. Friendlier.

NBB is the biggest bank on Michigan Avenue.
The hub of Chicago’s new changing skyline. But we’ll
extend the New Downtown to wherever you are.

That’s why we can give you
literally dozens of services. Like loan
participations. Bond portfolio analysis
and advice. Safe-keeping of securities.
Credit information. Use of our
computers. Executive search.
And more. It’s all part of being
whatever kind of bank you
need us to be.


The bank for the New Downtown
400-410 North Michigan Ave., Chicago, 111. 60611
Federal Reserve Bank of St. Louis

Phone (312) 467-4100

Member FD1C

One Card Accesses Various ATM Brands



te c h n o lo g ic a l

p ris in g th e
o f w h ic h

a c h ie v e m e n t

M o n e y c a rd



th e

electro n ic

be accessed

p a rt


b a n k in g

w ith

th e

sam e


m a n u fa c tu re rs


in A rk a n s a s


c a rd ,


ac c o rd in g

p e rm its


th e


b ra n d

l .-l -'

b an k s

First A rk a n s a s

com ­


a ll

B ankstock

C o rp ., HC w h o s e le a d b a n k is W o r th e n B a n k, Little Rock. Jack F leis chaue r, M o n e y c a rd

d ire c to r,

is sh o w n in s e rtin g a M o n e y c a rd in to a D ocutel u n it a t W o rth e n

B a n k. The sam e c a rd w ill also

a c tiv a te a d ja c e n t M o s le r (c.) a n d


g r e a te r f le x ib ility

in e q u ip m e n t

O ieb o ld


(r.) units. M o n e y c a rd

m a n u fa c tu re rs

c o m p lie d ,

m em ber
a c h ie v in g

b an k s

w a n te d

success in

customers throughout the area the op­
portunity to participate immediately in
the system.
An additional option will offer access
to savings accounts by customers of
participating banks if the banks elect
to utilize C&S’s automated savings ac­
counting system.
The franchise does not require par­
ticipating banks to have or install their
own ATMs, but C&S will assist in ac­
quiring units for participants, if they
desire such assistance.
The cost of the franchise is made up
of three elements— a flat fee for the
annual use of the franchise, a fee per
key card issued and a fee per transac­
tion processed through the C&S ac­
counting center.
The franchise is marketed through
C&S’s correspondent bank division. * *


a r e a b e lie v e d to h a v e b ee n som e tim e a w a y fro m so lutio n.

Instant Bank Key Transaction Card Plan
O ffered in Southeast by C&S, A tlanta

BAI Discloses Improvement
In Overall Check-Processing
For First Time in Five Years

ITIZENS & Southern National, At­
lanta, is franchising “Instant Bank
Key,” a banking transaction card, to
any bank in the Southeast that uses
or elects to use C&S’s on-line DDA
The card enables customers of a
participating bank to handle checking
account transactions in automated teller
Under the franchise arrangement,
each participating bank issues plastic
“Instant Bank Key” cards to its check­
ing account customers. Regardless of
where the customer’s bank is located,
he will be able to use his card at any

“Instant Banker” location on a 24-hour
basis to make withdrawals or deposits
to his checking account at his own
At present, there are 53 “Instant
Banker” locations in Georgia, with
more projected for the near future.,
Under the franchise agreement, each
“Instant Banker” is identified by the
“Instant Bank Key” emblem displayed
by participating banks. As additional
banks in Georgia and other south­
eastern states come into the system,
they will provide access points for the
customers of all participating banks,
thereby giving those banks and their

Remote Units Termed Branches
A federal appeals court in Washington, D. C., has upheld a ruling
by a federal district court that remote terminals in stores and else­
where are branches and thus come under state branching statutes.
According to the ruling, national banks cannot install remote hook­
ups in states not permitting branching or that have not enacted en­
abling legislation to accommodate such hookups.
The ruling is a victory for the Independent Bankers Association of
America, which filed the suit that prompted the ruling after Comp­
troller of the Currency James Smith advised national banks that they
could install remote hookups because he didn’t consider ATMs and
POS terminals to be branches.
The general consensus is that every remote terminal proposed in
states permitting branch banking will have to be approved as a
branch by state authority—an involved process.

Federal Reserve Bank of St. Louis

PARK R ID G E, IL L .—The nation’s
check-collection system has shown an
improvement in overall check-processing
operations for the first time in five
years, according to the Bank Adminis­
tration Institute.
In the March issue of its M agazine o f
Bank Administration, the BAI reported
the following performance improve­
ments in 1975 by 164 responding banks
over their performance in 1974:
• Average reject rates decreased
from 2.8% to 2.6%.
• Average transit-return rates de­
creased 9%.
• Average rate of free and lost items
discovered decreased 8%.
• Average rate of mis-sent and mis­
coded items discovered decreased 17%.
• Average rate of exception and re­
turn items decreased 10%.
• About 78% of outstanding excep­
tion item dollars were open less than
30 days, compared to 68% in 1974.
• Average transit holdover rates de­
creased 15%.
• Overall labor productivity in­
creased 12%.
While the rate of exception items has
been reduced, the BAI says, the com­
parison with 1974 revealed an increase
in the outstanding dollar value from
$213 million to $401 million.
The complete report, "1975 Check
Collection Survey,” will be released
sometime this spring, the BAI has in­


"This check has already converted
more than half of our line check
customers to personalized checks,
and the orders are still coming in”
H. Eugene Renno, Vice President
Georgia Railroad Bank
Augusta, Georgia

“The year before last we sent most
of our line check users a trial order of
scenic checks, hoping to convert them
to personalized checks. The results
were good, but we still had a substantial
line check expense each month.
“Then, last year, our Harland Sales
Representative suggested we try again,
only this time use the new Prestige
Check from Harland. We did, and were
very glad we did.
“Of the 6,000 line check users who
received the Trial Intercept Package of
Prestige Checks, more them half have
reordered the personalized checks in­
stead of their usual line checks. And
the orders are still coming in!
“The whole program has been a
complete success. The savings to our
bank have been significant, and our
customers are happy. We’ve even had
some customers come in and thank us
for sending them the Prestige Check.
“W hat it boils down to is a simple
case of offering the customers what
they want. If you do, they'll gladly
buy it!’

A t Harland, we do more than print
checks. We print good ideas.








Federal Reserve Bank of St. Louis


Kentucky Group Banks Issue O N E Card;
Systemwide Use Scheduled by Year-End
“NEW ERA in banking” has been
introduced to central and south­
eastern Kentucky with the introduc­
tion of the ONE card by Kentucky
Group Banks, according to A1 Florence,
vice chairman, Central Bank, Lexing­
The new banking card, which will
be offered by all 18 member banks of
the Kentucky Group by the end of the
year, entitles checking account custo­
mers to a number of services new to
the participating institutions. These in­
clude free notary service, instant ac­
count identification, instant balance ver­
ification, free traveler’s checks, monthly
premium offers, automatic bill paying
through check draft authorization and
estate planning, according to a spokes­
man for Kentucky Group Banks.
The group’s on-line system will even­
tually permit cardholders to have checks
verified at local merchants and have the
use of automated teller units located
in member banks throughout the 25county area served by Kentucky Group
Initially, cards were issued to person­
al checking account customers of Cen­
tral Bank, Lexington. However, cus­
tomers of the other 17 member-banks
are expected to receive cards by the
end of April.
All cardholders will be entitled to
free checking, plus the services listed
above. Sometime in the future, they
will also be entitled to travel discounts
and assistance and life insurance equal
to the amount on deposit in their regu­
lar passbook savings accounts.
Each teller station at member banks
will be equipped with NCR 279 units
to provide computer entry. The units
will give tellers the ability to produce
instantaneous account balances for cus­
tomers, thus eliminating much of the
time spent making phone calls to book­
keeping departments.
Eventually, cardholders will be able
to cash personal checks at any of the
Kentucky Group’s 18 member banks
and a market survey will soon be con­
ducted to test the feasibility of placing
check guarantee machines at local
stores, which will make it possible for
a cardholder to have his check verified
at stores throughout the Kentucky
Group area.
Totally automated banking will be
available throughout the group’s trade


If only his banker had known,
he w ould have in s is t e d on in su r­
ance a t th e t im e he granted a
loan. Now, the banker's loan
could be in jeopardy!
When a loan is made, th a t’s
the tim e to prote ct the borrow ­
er . . . AND YOUR BANK! This
is p a rticu la rly tru e of th a t BIG
LOAN or th a t RISKY LOAN made
to the sm all businessm an or the
fa rm e r who may be un d e r-in ­
sured. Reason: when som ething
happens to th a t type of borrow ­
er, the loan often becomes de­
linquent or unco lle ctib le .
INSURANCE w ill solve your prob­
lem on those big loans. And, of
course,_we have a fu ll range of
c re d it life and other types of in­
surance th a t fit alm ost any lend­
ing situation.

5811 H am pton St.
St. Louis, Mo. 63109

Federal Reserve Bank of St. Louis

D ie b o ld 5 5 0 TABS units a r e p la n n e d f o r a ll
K e ntu cky G ro u p b a n k s b y y e a r en d , b e g in n in g
a t C e n tra l B a n k, L ex in g to n . They w ill p ro v id e
2 4 -h o u r b a n k in g services fo r O N E card hold ers.




u n it

w ill


in s ta lle d



te lle r s ta tio n a t K e n tu cky G ro u p b an k s to p e r­
m it e n try to o n -lin e EFT system , cut tra n s a c tio n
tim e s .

area before the end of the year, a
spokesman said, when the installation
of Diebold 550 TABS units is complete.
All units will be installed in existing
bank locations initially. Consideration
eventually will be given to installations
in shopping malls.
The Diebold units will permit card­
holders to secure cash, make deposits to
checking or savings and make transfers
from savings to checking or vice-versa.
Customers will also be able to ascer­
tain account balances through the
The first units will be placed at Cen­
tral Bank and its branches, with subse­
quent installations planned for the oth­
er Kentucky Group banks later in the
It is estimated that approximately
250,000 ONE cards will be issued by
year-end. * *


Four ways to make
new customers out of old

First N ational's Central Inform ation
File (CIF) gives you fou r diffe re n t
sales and service profiles of your
customers to increase bank a ctivity.
Straight A lphabetic — quick and
easy w ith ind ividual relationships
tied together.
M atch-N o M atch — merge tw o
types of info rm a tion to p in p o in t
w hich services a custom er does or
doesn't have.
Household Relationships — spells
o u t jo in t accounts, individual
accounts, even children's savings.
Households by Branches—for use
in branch or area m arketing efforts.
A ll of these profiles are broken
o u t in an easy-to-reference paperHOUSEHOLDS BY BRANCHES
base hard copy.
And w ith them, your m arketing
o ffic e r can better cross-sell bank
services, your cre dit o ffice r has a
fu lle r credit analysis and your
operations o ffice r has one u n d u p li­
cated channel of com m unications.
The cost fo r CIF is o n ly $5,000.
Surprisingly low considering the am ount of data CIF references fo r your officers.
If you'd like to know more about this com plete
banking program, call either Herbert M. Richard­
son, Jr. or Jerry L. Fessel at 1-502-581-4200.

M em ber Federal D eposit Insurance Corporation

Federal Reserve Bank of St. Louis


Five-S tate EFT Network Signs 150 Banks A fter Road Shows
SE R IE S of “road shows” to explain
the concept of a proposed elec­
tronic banking system to be shared by
banks in five states lias been completed
by Financial Communication Services
Corp. (F C S C ), St. Louis.
As of mid-March, FCSC had signed
150 banks into the system, all of which
are said to be located in the system’s
major market areas. The network will
encompass all of Missouri and Kansas
and parts of Iowa, Illinois and Ken­
The system is expected to begin
operations late this year, with the first
installations expected to be in St. Louis;
Kansas City; Columbia-Jefferson City,
Mo.; and Davenport, la.
FCSC is a not-for-profit corporation
created to develop and operate an elec­
tronic consumer banking communica­
tions system for participating banks
in the five-state area. The network will
provide for automated banking facilities
at retail merchant outlets and at
free-standing “financial convenience
The FCSC system is known as Bank-

B a n k M a te is th e n a m e o f th e EFT system b e in g
d e v e lo p e d b y F in a n c ia l C o m m u n ic a tio n Services
C o rp .,





custom ers o f p a r tic ip a tin g
ATM a n d

w ill



POS e q u ip m e n t.

Mate. The name was chosen, according
to FCSC executive vice president John
G. Regan, after the establishment of
favorable reaction to the name through
a consumer attitude study, which indi­
cated that the public considers the
name to accurately depict the service
the system will provide.
BankMate plastic debit cards will
enable customers of participating banks
to use the system’s electronic equip­
ment at remote locations.
The card is designed in two shades

■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

FREE...6 issues of
! Doane’s Farming for Profit,


Over 800 banks send this leading newsletter to farm customers
each month. It’s filled with facts to help farmers boost income.
They appreciate the information and the bank that sends it. There’s
no better way to show you’re the ag bank in your area. Your attractive bank heading appears on each issue — and you get exclusive
use in your trade area.

Mail coupon or your name and letterhead for six issues . . . Free.
* YOUR NAME_____________________________ TIT L E ________________



A D D R E S S ________________________________________________


C ITY _______________________________ S T A T E _________ Z IP________



...a vital link between
you and your
farm community.

Federal Reserve Bank of St. Louis


b an k s fo r access to

Doane Agricultural Service, Inc.

r W ' ,\ / \ I V I I T
U U / M l t

8900 Manchester Road
St- Louis, Missouri 63 144
(314) 968-1000

of green, each on a separate horizontal
panel. The lower panel contains the
card name, and space for embossed
cardholder information. The upper pan­
el provides space for the name and
city location of the participating bank.
BankMate is said to be the first
regional debit card system to be de­
veloped, and Mr. Regan stated that all
banks, regardless of their size or EDP
capacity, will be able to take part in
the system.
At one of the road shows, Bernard
J. Ruysser, president, Commercial Na­
tional, Kansas City, Kan., said, “We
see this system as the first really excit­
ing new service that we have had avail­
able to our customers in years. And we
believe strongly that our customers will
accept and use the service. Perhaps
more importantly, if we banks don’t
provide this service, someone else will.”
When first installed late this year,
FCSC ’s network will provide up to 30
“financial convenience centers,” which
are free-standing structures with auto­
mated banking equipment available
round the clock, and about 1,000 POS
Customers of participating banks will
be able to use the convenience centers
to transact such bank business as with­
drawing funds from checking or savings
accounts, making deposits, transferring
funds between accounts, obtaining cash
advances from bank charge card ac­
counts and inquiring into the status of
various accounts.
At the POS terminals, customer ser­
vices will include check guarantee, pay­
ment of goods through money transfer,
charge card authorization, and inquiry
into account balances. * *
Women's C re d it Rights:

V alley N a t'l Brochure
Answers Financial Q ueries
Valley National, Phoenix, has pub­
lished an educational brochure dealing
with women and their credit rights and
Entitled “Valley National Bank Talks
About Women and Credit,” the 16page brochure addresses 20 of the most
commonly asked queries about Regu­
lation B of the Federal Equal Credit
Opportunity Act. It also provides infor­
mation about income, community prop­
erty state stipulations and marital
status. There is no attempt to sell VNB
in the booklet.
The brochure has been offered free
in all the bank’s offices.




Amounts and denominations autom atically in d ic a te d by
Basic coin wrapper in extra strong kraft stock. Printed in 6
patented " re d bordered window s". A m o un ts in windows
different standard colors to d ¡ffe re n itia te denominations.
always in reg is ter. . . eliminates mistakes. Accommodates
T rip le d e s ig n a tio n th ro ug h colors, p rin tin g and letters.
all coins from lc to $1.00.
Tapered edges.
Especially designed for machine filling . . . a real time-saver.
Wraps 4 denominations in half size packages. A miniature of
Packed flat. Instant patented “ Pop Open” action with finger
the popular “Automatic Wrapper” . . 25c in pennies, $1.00 in
tip pressure Denominations identified by color coding . . . 6
nickels, $2.50 in dimes, $5.00 in quarters.
different standard colors.
Package contents clearly identified on faces and edges by
color coded panels with inverted and reverse figures. Made
Color coded for quick, easy identification. Red for pennies . . .
blue for nickels . . . green for dimes . . . to indicate quantity
of extra strong stock to assure unbroken deliveries. Only pure
dextrine gumming used.
and denominations . . . eliminates mistakes. Tapered edges.
Extra wide . . . extra strong. Designed for areas where halves
Entire strap is color coded to identify denomination. Printed
are wrapped in $20.00 packs . . ." re d bordered window” for
am ount appears on top and bottom of package. Extra wide
for marking and stamping. Extra strong stockfor safe delivery
ease of identification. Accommodates $20.00 in dollars, $20.00
in halves. Tapered edges.
and storage. Pure dextrine gumming.
Ideal for packing currency, deposit tickets, checks, e t c .. . . do not break
or deteriorate with age. Size 10 x % inches and made of strong brown
Kraft stock with gummed end for ease of sealing. Packed 1000 to a carton.



C. L.





MID-CONTINENT BANKER for April, 1 9 7 6
Federal Reserve Bank of St. Louis









D E P T . MC


The Psychology of Convenience and Change

ACH CHANGE in the payments
mechanism causes bankers to be­
come increasingly worried about the
allegiance of their customers. Take lock
box, for example. Most people view the
lock box as a direct outgrowth of the
desire by corporations to better utilize
their cash. Often overlooked, however,
is the fact that corporations—long con­
cerned about their growing number of
banks— also viewed the lock box as an
opportunity to consolidate or reduce
their banking relationships. Hindsight
tells us that this change in the pay­
ments system caused a great shift in
customer allegiance. Some banks gained
corporate relationships because of their
lock-box capabilities. Others lost busi­
This concern by banks for keeping
customers can cause some problems.
Having been deeply involved in an­
other area of the payments mechanism,
the charge card, I remember well the
frustrations. The $64 question in the
early days was whether the introduc­
tion of the charge card would cause
customers to change their banking re­
lationships. Worrying about the answer
to that question pushed many logicalthinking bankers into emotional re­
actions. Poor judgment became the
norm rather than the exception as
banks everywhere cut corners to get
on the charge-card bandwagon.


The Whittle Group
Now that we are entering a new
era of electronic funds transfer, banks
are again wondering about the effects
on established customer relationships.
Will customers switch to banks with
E F T capabilities? If so, will big banks
have an advantage over small banks?
Or, will small banks still retain certain
territorial rights because the basic law
of customer relationships now is con­
venience of location?
Basically, there is a built-in resistance
to change. This applies especially to
banking habits—particularly in smaller
communities where research has shown
that individuals and families tend to
stay with the same bank year after

C u sto m ers w ill h o v e
e d u c a te d
th e
a n d , once th e y g e t
th e
m a­
chines, th e y 'll n e v e r
re tu rn to te lle r lines,
th e y
choice, acc o rd in g
Jack W . W h ittle .

Federal Reserve Bank of St. Louis


year. Questioned as to why this is so,
many inhabitants of smaller communi­
ties fall back on “but I ’ve always
banked here” or “this is where my par­
ents banked.”
In the Chicago metropolitan area, we
discover that only 15% of the people
change banking relationships during a
given year. To be sure, about 25-30%
change addresses, but the actual act of
closing an account and opening a new
one in its place elsewhere is not nearly
so common, and when it happens, it
usually is related to convenience.
The most frequent reason people
give for selecting a bank is conve­
nience. But with the advent of E F T S
banking, the whole structure of con­
venience is about to change. Any stu­
dent of marketing will tell you that if
someone can offer more convenience, a
more easily accessible way for the cus­
tomer to obtain the product, people
will usually gravitate to the newer sys­
tem. We proved it with drive-in tellers.
Which leads me to conclude that if a
person can bank at the supermarket
without the additional chore of driving
to another parking lot and waiting in
another line, he most certainly will
Admittedly, when established habits
or behavior must be altered to gain
more convenience, it may not be worth
the effort. But research indicates that
once people have tried and become
used to automated teller machines
(ATMs) and POS systems to transact
banking business, they repeatedly will
use this equipment because it is more
convenient in terms of location and
Recently, while conducting a series
of focus groups on people’s attitudes
toward financial institutions, a woman
made a comment I think is representaPrior to forming The Whittle Group,
Mr. Whittle was a vice president
and director of marketing at Con­
tinental Illinois National, Chicago.
He is currently serving as treasurer,
Bank Marketing Association. The
Whittle Group offers marketing ser­
vices to the financial community.

MlD-CONTINENT BANKER for April. 1976

It’s tim e you took
a second look

at K an sas B an k N ote Com pany.
Take a look at savings.
W ith the specialized equipment, the experienced management
and staff we have at Kansas Bank Note, our prices are very
competitive . . . lower priced than many. Our central location
helps a lot on shipping too. All we ask is a chance to prove it.

Take a look at quality.
W e’ve been specializing in printing bank forms and checks since
1920 and experience has taught us that our customers deserve and
get top quality all the way. The paper, ink, format . . . every­
thing is inspected and quality checked. W e’ll he happy to show
you samples to prove it.
KANSAS BANK NOTE has a brand new customer checkKANSAS BANK NOTE CDM PANY
selection brochure. W e think it’s a knockout. Pages and pages of
full color check and cover reproductions of every style and de­
We’re that Second Look.
scription. With this marketing and advertising aid, you’ll know
For your total
you’re offering real quality at a price that you and your customers
bank printing needs.
will like. Give us a call.

MID-CONTINENT BANKER for April, 1 9 7 6
Federal Reserve Bank of St. Louis

FR ED ON IA. K A N S A S 6 6 7 3 6

• 3 1 6 -3 7 8 -2 1 4 6


"My a d v i c e t o s m a l l b a n k s is t o l e t t h e b ig o n e s t a k e a l l
t h e l u m p s . L et t h e b ig b a n k s e x p e r i m e n t w i t h a l l k in d s o f
s y s te m s a n d y o u can p l u g in l a t e r . "

tive of many people’s thoughts in this
day and age. She stated that not long
ago, she went to her usual supermarket
and there was a new savings and loan
right in the supermarket. Her first re­
action was why is a savings and loan
located in the supermarket? But after
reflecting on this for awhile, she
thought, “Why not?” On her next trip
to the supermarket, she opened an ac­
count for her children with money
withdrawn from her bank because she
said it saves her time.
As marketers of financial services,
we should never forget that people
basically are lazy and anything that
can save them time usually wins their
approval. This is evidenced by every­
thing from hot combs to electric garage
door openers and helps explain why
one out of every nine American fam­
ilies contracts with private firms for
lawn maintenance. Time is the most
valuable asset we have.
Despite people’s preoccupation with
time, the behavioral change in using
an ATM is most severe. This is be­
cause it takes a function always per­
formed by the teller and switches the
responsibility for the accuracy of that
transaction to the customer. Once
again, our research indicates that some
people will read and study a behav­
ioral change and then buy it. These
are what we call the “early adopters”;
but, unfortunately, they represent only
about 16% of the population. The rest
of us require at least a step-by-step
demonstration before we’ll try some­
thing new.
For this reason, customers will have
to be educated in the use of ATMs and
POS systems. And to make sure they
will agree to be educated in the first
place, some sort of incentive—like cash
or coupons, a drink of lemonade, a
doughnut or a small giveaway—will be
required to get people involved. After
they’ve used it once and discovered
they didn’t blow the computer or push
the wrong buttons, they’ll become
more confident. And as their confi­
dence grows, they’ll never again return
to teller lines, unless given no other
People worry most about the first­
time use of the machine, but once they
gain confidence, it’s like being part of
the in-crowd. As they begin to use the
ATMs more and more, they may even
laugh inside and feel sorry for those
people who still wait in lines and bank
Federal Reserve Bank of St. Louis

during normal banking hours. They’re
really saying: “Isn’t it too bad you
don’t have the guts to try something
new? Watch me use this machine. I ’m
superior in knowledge and am basical­
ly a progressive person.”
A recurring theme we often hear in
our research is that people like the
idea of controlling the transaction
themselves. Certainly, there are linger­
ing doubts, but surprisingly, the anxi­
ety level can actually be red u ced by
using a machine. With a human teller,
there’s always the fear after presenting
a check of: Where’s she going with it?
What records is she looking up? Is she
calling someone to verify whether I
am a good person? The machine allevi­
ates these kinds of fears by making the
transaction impersonal. People who are
concerned about their involvement with
other people in their personal money
matters (most of us fit in this mold, by
the w ay), having overcome the educa­
tion barrier by using a money machine,
will time and time again come back to
Even so, it will be a good many
years before the majority of your cus­
tomers use ATMs because resistance to
behavioral change is great. But unless
you get cracking on E F T S now, you’re
in for some real trouble. Good market­
ing counsel can help overcome some of
these behavioral changes, and banks
will have to learn they cannot market
E FT S like other products. Most banks
have a great deal more to learn about
their customer bases before they make
the far-reaching decisions as to equip­
ment and locations.
My advice to small banks is to let
the big ones take all the lumps. L et the
big banks experiment with all kinds of
systems and you can plug in later. But
now is the time for small banks to es­
tablish within their markets some sort
of clear relationship to the future E F T S
environment. They should develop the
behavior pattern of having their cus­
tomers use some sort of card clearly
identified with their banks. It need not
be plastic nor even functional. But, the
point is that within 10 years, most of
us will transact our banking with cards.
When customers reach in their wallets
for those cards, you’ll want them in the
habit of pulling out your card and not
your competitor’s.
Secondly, all banks must concentrate
now as never before on increasing
market share. This means stealing cus-

tomers from the competition and tight­
ly locking them into your bank so
they’ll never leave. In the era of E FT S,
convenience no longer will be a factor
in selecting or switching banks. Be­
cause all banks will be equally con­
venient. And then the ball game
changes. Market share will become
“frozen.” It’ll become difficult to ac­
quire new customers, so you had bet­
ter get as many as you can now.
Third, don’t just “wait and see” or,
worse yet, become a holdout. Because
when the E F T S dam breaks, there’ll be
no turning back for any of us. When
consumers, corporations and govern­
ment bodies start to get really turned
on to the electronic payments mecha­
nism, the process of conversion will ac­
celerate. To be in a position to take
maximum advantage of the oppor­
tunities, learn all you can now.
I’m constantly amazed at the num­
ber of bankers who still think E FT S
won’t ever happen. Also, that many
banks have refused to become mem­
bers in cooperative ventures like auto­
mated clearing houses. I hope this
changes—and soon. To develop a repu­
tation of non-cooperation or resistance
to progress may be suicidal. It’s very
important that your customers perceive
your bank to be involved in the E F T S
movement today if you expect to keep
them tomorrow. You can get much
more recognition and achieve a higher
level of awareness on a cooperative
basis than you can ever get going it
Finally, E FT S will quickly blur the
distinctions between all financial in­
stitutions. Smaller banks can no longer
afford to be all things to all people. It
will be important for these banks to
carve out a niche in the market and
then reinforce their claim on that po­
sition through creative execution and a
consistent program of communication.
By gaining a foothold now, when
large banks enter local markets via
E F T S— as they surely will—their im­
pact can be minimized. Assess your
major strengths and communicate them
to your market. Correct your weak­
nesses. To be successful in the era of
E FT S, your institution must be con­
sistent in everything it does. Consisten­
cy is based on a sound rationale of
what your institution is and what it is
trying to become. Above all, it requires
a management that’s brutally frank,
with a strong commitment to change
the institution to fit the demands of the
marketplace. • •


He found aw ay out
o f the day-late,
dollar-short dilemma.

Dave has found a system th at provides
more cash on hand for his bank through:
Our A ccelerated D eposit Collection
S y stem —The Northern Trust’s own
d irect send program accep ts D ave’s
unsorted cash letters later than most
deadlines in Chicago and provides imme­
diate availability for many financial
Federal Reserve Bank of St. Louis

centers throughout the country.
Our A utom atic F u n d s P ro g ra m —a
unique reporting system th at gives him
today’s information today on available
Our D eposit A nalysis S en d ee —a
periodic, computerized analysis th at
provides complete, accurate informa­

tion on the composition of deposits.
End result: Dave has more money
available to invest for more profit. You
could too. Our Trial Cash Letter will
help. To set it up, contact your Calling
Officer at: The Northern Trust Bank,
50 South LaSalle Street, Chicago 60690.
Telephone (312) 630-6000.

The Northern Trust Bank
Bring your financial future to us.

Electronic Banking, Consumer Legislation
Discussed at AMBI Credit Conference
Associate Editor

LECTRO N IC banking and consum­
erism were two popular topics at
the recent consumer credit conference
sponsored by the Association for Mod­
ern Banking in Illinois (AMBI) in St.
A panel on electronic banking, mod­
erated by James E. Brown, president,
Mercantile Bancorp., St. Louis, fea­
tured Sean Millin, vice president, In­
terbank Card Association, New York
City; Larry D. Wright, vice president,
First Galesburg (111.) National; and Joel
Crabtree, vice president, Continental
Illinois National, Chicago.
Mr. Wright presented his bank’s au­
tomated teller machine (ATM) track
record. With two units, the bank has
succeeded in taking in $326 in deposits
for every $1 withdrawn. He reported
that a local survey revealed that 93%
of the general public knew what an
ATM was, 87% associated the units
with First Galesburg National and 32%
of households in the community have
access cards to the machines. In ad­
dition, he said, from 6% to 13% of the
customers of competing banks in the
community have access cards to First
Galesburg National’s ATMs. (See ar­
ticle on page 72 for more of this bank’s
ATM track record.)
Mr. Millin said that the plastic card
is the key to any check authorization
He said any successful debit card


must have uniformity with a nationally
recognized logo, such as Master
Charge; it must be easily usable at all
terminals and it must be secure. He
said that retailers are not geared to the
banking system’s magnetic stripe cod­
ing system yet.
The debit system, he continued, is
designed to act as a highway between
various local or regional systems, not
to conflict with them.
Mr. Crabtree said convenience is the
most important criterion when a cus­
tomer selects a bank. He spoke of Con­
tinental Bank’s 60 POS machines in use
in Chicago, which average half a mil­
lion transactions per month. He said
that cash withdrawal is going to be
added to the services available through
the units.
The bank’s seven ATMs average $2.5
million in transactions per month, he
said, with from 90 to 110 machine
transactions for every 100 cards out­
He also said that ATMs can replace
tellers economically, according to pre­
liminary tests, and he predicted five na­
tional debit card systems within five
years to serve the banking, thrift and
credit union industries.
He also predicted the possible retire­
ment of Continental’s own debit card
within two years in favor of a national
debit card, such as Signet, which will
be initiated by Interbank Card Associa­
tion in 1977. He said the greatest
growth in a debit card system will occur
after the system becomes linked with a
national network because the consumer
thinks a national network is better than

a regional system.
James A. Matthews, chairman, AMBI
consumer division, and vice president,
Continental Bank, Chicago, spoke on
the topic of consumerism. He said that
much of the consumer legislation being
enacted reflects the public’s rapidly
changing attitude. He said the reaction
of banks to consumerism is too often a
knee-jerk instead of a rational response.
He said bankers should ask them­
selves if the consumerist movement was
fomented in any way by disappoint­
ment with the way bankers promote
their services. They should ask them­
selves if they promised too much and
couldn’t deliver to the public’s satis­
faction, he said.
He said that legislators do not be­
lieve banker predictions regarding the
adverse effects consumer legislation can
have. The Real Estate Settlement Pro­
cedures Act (RESPA) was a prime ex­
ample. He pointed out that Congress
can act swiftly to tone down legislative
overkill, as it did in the case of modify­
ing RESPA recently. He said Congress
acted swiftly because it feared the con­
sequences of delay.
He indicated that consumer credit
could dry up if legislation becomes
overly restrictive. But if it does, he said,
the public sector will take over the
consumer credit field.
He called on bankers to work to re­
gain their lost credibility with both the
public and legislators. “W e have cried
Yvolf’ too many times,” he said, “be­
cause our dire predictions have not
come to pass.”
He said bankers should appeal to the
economics of a situation, not the emo­
tions. They should have reliable cost
figures to support their arguments.
They should find better ways of de­
livering consumer credit services with­
out violating the basic rules of lending.

New BAI Publication
Gives Job Descriptions

P a rtic ip a n ts on EFTS p a n e l a t A M B I consum er cre d it co n feren ce w e r e (fro m
p res., M e r c a n tile

I.) Jam es E. B ro w n ,

B a n co rp ., St. Louis (m o d e r a to r ); S ean M illin , v .p ., In te rb a n k

C a rd

A ssn.,


Y o rk C ity; Larry D. W r ig h t, v .p ., First G a le s b u rg (III.) N a t'!; a n d Joel C ra b tr e e , v .p ., C o n tin e n ta l
B a n k, C h ica g o .

Federal Reserve Bank of St. Louis

The Bank Administration Institute
has published Jo b D escriptions for
Bank Personnel: A C om prehensive
Guide, a 300-page soft-cover book de­
signed as an aid to personnel officers
and employees.
Primarily a reference book, Jo b D e­
scriptions is to be used in writing, add­
ing to, refining or changing the style
or format of job descriptions or rear­
ranging the responsibilities of some
existing positions.
The publication contains a combina­
tion of job descriptions, specifications
and management guides representing
32 different division, department or
banking functions, reflecting about 137
“key” officer and nonofficer positions.


It takes more than
four pretty faces to
give you fast decisions
Federal Reserve Bank of St. Louis

It takes people who know banking like your bankers from
Boatmen’s. They are trained to give you the assistance you need.
Naturally, some situations arise that require special technology.
Your banker from the Boatmen’s will draw on the knowledge of a
marketing specialist, bond specialist or a computer technician,
whatever is necessary.
In reality, Boatmen’s staff is your staff, ready to assist you in any of
your banking needs. Fast decisions? Usually. Knowledgeable
decisions? Always. Call our Correspondent Banking Division at
421-5200. We’d welcome the opportunity to show you. Member
Federal Deposit Insurance Corporation.




96%O M
***( USO^vi i


Federal Reserve Bank of St. Louis


Ifs unique. Its proven.
If II bring in new customers
fo r all your services.
And you sti 11
receive your full
regular commission
f ir s t


n a t io n a l


y«**« >

c it y


b a n k

m & é i mu*
^ T W E N T Y D O llA R S !
■ ......
' :

iîS 000«*Q0QS*î

• '


?«. 5». *39 31*0**

jt customers can buy up to
/orth o f First N ational City Travelers Checks
fo r only a $2 fee. Its a blockbuster event your custom­
ers look for and take adva n ta g e of. W hich means lots
of tra ffic and profits fo r you.
W e ll be te llin g the Big M ay Sale story, and
supporting you, w ith an advertising program that
delivers over 245,000,000 selling messages in May.
It includes our biggest TV cam paign ever, w ith com­
mercials on netw ork TV hits like A ll in the Family,
Barnaby Jones, Rockford Files, NBC Saturday N ight
M ovie, and m any more, plus coverage of national
and international auto racing events.
We're also backing you up w ith a dynam ic a d ­
vertising cam paign in Sunday Newspaper Supple-


ments for m a xim u m local im oact and im m ediate
sales results. There's even a local prom otion kit that
takes the excitem ent of our national program and
puts it right into you - institution.
First N ational City Travelers Checks alw ays give
you and your c js romers something extra W hether
it's thousands more on-the-spot refund locations or
this Big M ay Sale. Don't miss the Big M ay Sale's big
opportunity fo r sales a n d profits.
If you aren't a lready seliing First NoJional City
Travelers Checks, w rite im m e d ia te ly to Citicorp Serv­
ices, Incorporated, 399 Park Avenue, N ew York, N.Y.
10022, or cal! collect (212) 559-0542. A nd w e ll rush
to you all the materials you need to make M ay f he
start of something big.

Federal Reserve Bank of St. Louis


How a $90-M illion Bank Made It W ith ATMs;
Track Record Reveals EFT Success Story
HY AND HOW would a $90-million bank embark on a completely
internal automated teller machine
(ATM ) program? These questions are
continually being asked of us, along
with one other—What results is the op­
eration getting?
The operation was initiated to gain
valuable expertise prior to the full­
blown arrival of E F T S and to prepare
bank customers for electronic banking.
It was also initiated to get new busi­
Results have exceeded our expecta­
tions. Take a look at the accompanying
table, which shows that First Galesburg
National has seen significant increases
in its penetration of the local checkingaccount market since installing its first
ATM unit two years ago. The bank has
captured 56% of all accounts opened in
its trade area in the past six months and
50% in the past year. This gain has been
at the expense of other local banks.
Galesburg cannot be classified as a
growing city. In fact, it has been losing
residents over the past 10 years. The
average age of residents is among the
highest in the state, thus, the market is
conservative. The competitive situation
is such that in 1972 three of the four
banks introduced a program of no-service-charge checking and free checks.
When implementing our ATM opera­
tion in late 1973, it was not our inten­
tion to make the program a “marketing
gimmick“ or the “latest thing to do.”
Rather, we intended to expand upon
the program while challenging our­
selves to accurately measure the results.
We were convinced that only through
such a process could we be in a posi­
tion to measure and forecast the impact
of E F T on the bank’s future. The re­
sults to date not only have met our
greatest expectations, but point toward
a bright future for the bank.
First Galesburg National’s assets
were $67 million when the decision
was made to introduce the ATM ser­
vice. This midwestern Illinois com­
munity has a population of 38,000 and


Federal Reserve Bank of St. Louis

Vice President
First Galesburg National Bank
Galesburg, III.
is serviced by three other banks with
year-end 1975 assets of $48 million,
$36 million and $7 million. The com­
munity also supports two S&Fs, each
listing assets in excess of $100 million,
and five active credit unions, two of
which have branches complete with
The decision to install the first ATM
was made due to:
• The need to offer a service that
could compete in a restricted environ­
• The fact that account growth
would justify the cost, with all installa­
tion and start-up expenditures being re­
covered within a three-year period.


• The need for the bank to prepare
itself for E FT .
Being in a unit-banking state, it is
necessary for the bank to serve all cus­
tomers from the Main Office and a
drive-up facility just 1,500 feet away.
The bank felt it was imperative to offer
customers convenient banking hours
geared to their life styles, rather than
requiring them to conform to hours set
by the bank. It was also our intent to
provide current and potential customers
with a worthwhile service that could
not easily be copied as a “me too” ser­
vice by our competition. Since the in­
stallation of our ATM, two competing
banks have extended their drive-up
hours (one is open until midnight) to
attempt to neutralize the effect of our
ATM operation.
We have been critical of bankers
who sit on their laurels, watch the crea­
tion and development of projects and
decide at the twilight hour to jump in
because it appears to be the thing to
do or because their customers demand
it. This can meet with disastrous re­
sults, i.e., charge cards, leasing, REITs.
It was management’s decision not to
take the sometimes costly “wait and
see” attitude that is so typical of our
industry. Management also decided not
to introduce a full-blown program, but
to systematically establish expertise in


























1 -2






2 -5






C h a rt sho w s t h a t First G a le s b u rg
t ra tio n

( III.)

o f th e ch e ckin g -a c c o u n t m a rk e t

N a f'l


e x p e rie n c e d

since in s ta lla tio n

has secured 5 6 % o f a ll n e w accounts o p e n e d in p a s t
y e a r. G a in has com e a t e x p e n s e o f local c o m p e titio n .

s ig n ific a n t


o f its first A T M

tw o



m onths




y e a rs
w ith in




B ank

th e



When you need
a helping hand,
try one of ours.
Our staff of professionals is ready,
willing and able to provide you
and your banking customers with
a full range of correspondent
banking services.
• Clearings
• Loan Participations
• Demand D eposit Accounting
• Bond Portfolio Analysis
• Federal Funds
• Automated Savings and
C/D Accounting
• F u ll Data Processing Services
So if you have a financial
problem, big or little, . . . don’t
hesitate to call for help. Contact
Earl Lassere, Vice President and
Manager, Correspondent Bank
Department at (713) 225-1551.

Bank of the Southwest
91 0 Travis Houston, Texas 7 7 0 0 2

Federal Reserve Bank of St. Louis

M em ber Southwest Bancshares, Inc.

M em ber F.D.I.C.


the field at the grass-roots level.
To analyze the cost of the program,
the following basic procedure was uti­
• The bank outlined all costs relat­
ing to the program for years one
through seven.
• By referring to the Fed Functional
Costs Analysis, we determined the net
worth of DDA and savings accounts
and then established our goals as to
the number of new accounts necessary
to cost-justify the expenditures.
In May, 1973, the decision was made
to undertake an ATM operation that
we considered feasible and profitable
and to introduce this program on an
internal basis. All receipts, envelopes,
card designs, mailers, computer pro­
grams and marketing were designed inhouse. The only external procedure is
embossing and encoding plastic debit
cards. The program was introduced
through an IBM 1240 computer and it
was not necessary to establish a cen­
tral information file. At present, the
bank is operational on an IBM 360/30
and is continuing to operate off-line.
In November, 1973, the first ATM
unit (a Docutel T3 Total Teller) was
set up for demonstration purposes in
the main lobby. During a 60-day pe­
riod, more than 10,000 demonstrations
were given to customers. Much of our
success in the program is attributed to
this demonstration period. This phase
of the introductory period was heavily
advertised and resulted in the acquisi­
tion of numerous accounts from our
In January, 1974, the unit was per­
manently installed at the bank’s drivein to provide 24-hour accessibility. We
were aware that the location was less
than desirable. Traffic in the area is
minimal, the site is adjacent to an apart­
ment house filled with retirees, an
abandoned filling station and a whole­
sale parts house. The manufacturer of
the equipment projected that the ATM
would not average 300 transactions per
week during the first year of operation.
However, within 90 days of installa­
tion, the unit had reached the 300-perweek usage level.
We credit the immediate acceptance
of the ATM to two things:
• A lengthy and well-advertised
demonstration period.
• Mass issuance of private-label
debit cards 10 days prior to the instal­
lation of the unit.
Customers qualified for cards if their
accounts met the following criteria:
• A DDA account that had been on
the books for a minimum of six months,
maintaining an average balance in ex­
cess of $100 with two or less overdrafts
and no returns.
Federal Reserve Bank of St. Louis

• A savings account on the books
for a period of one year or more and
maintaining an average balance in ex­
cess of $250.
Although operating off-line, the bank
suffered less than $300 in losses during
the first year, based on the above cri­
teria. At the end of that year, the orig­
inal ATM was chalking up 600 transac­
tions per week, with deposits exceeding
withdrawals by three-to-one. We re­
ceived inquiries as to when a second
unit would be installed.
We decided to install a second ATM
at a more convenient location in 1975,
even though there was little doubt that
a suit would be filed by the banking
commissioner once the unit was in
place, because of the site chosen— a
shopping mall some distance from the
The decision to further expand the
ATM operation was based on the fol­
lowing points:
• Our internal marketing research
indicated customers would not only
use, but would welcome, a second and
more conveniently located unit.
• A review of our original objectives
as they related to account growth re­
quired for cost justification determined
that during the first year of operation
these objectives had not only been met,
but exceeded by more than 100%.
• Management was determined to
further develop the bank’s expertise
and technical advantage over competi­
tors while continuing to prepare for
E F T in a systematic and orderly fash­
The second ATM unit was installed in
October, 1975, in Sandburg Mall, a 52acre development that draws customers
from a multiple-county area. It is lo­
cated in the most concentrated residen­
tial area of the county.
Following the installation, debit-card
applications increased 200% and have
continued at this pace. Within 90 days,
the mall unit was averaging 300 trans­
actions per week, with dollars deposited
exceeding withdrawals five-to-one.
As a small bank located in a non­
metropolitan area, First Galesburg Na­
tional felt it was imperative that re­
sults be measured. To accomplish this,
an outside research firm was employed
to complete a survey of our market area
in regard to quality of service and mar­
ket penetration.
Survey results relating to the ATM
operation included the following:
• 93% of randomly selected respon­
dents were aware of the ATM opera­
• 87% associated the operation with
our bank.
• 32% of the households in Gales­
burg maintain debit cards.

• While 63% of our own customers
had cards, from 6% to 13% of our com­
petitors’ customers also held cards at
our bank so they could use the ATMs.
• 36% of the households in Gales­
burg with incomes of $25,000 had
• Our bank’s penetration of new
DDA accounts increased from 37% to
56% since the introduction of the ATM
• 16% of the new DDA accounts and
20% of the new savings accounts came
from competing banks.
Why is a $90-million bank located
in a community of 38,000 so involved
in E F T ? Our primary objective was
account acquisition
and retention
through an established and profitable
service. It is our opinion that E F T is
a viable and necessary service. It was
not our decision to “wait and see” but
to develop expertise and a customer
base that will be prepared for E F T
when it comes. • •
Editor’s note: First Galesburg Na­
tional has developed an Electronic
Teller Program Installation Manual
of 275 pages that tracks the bank’s
ATM operation through market anal­
ysis, cost justification, installation
procedures, off-premise ATMs, re­
sults, etc. Copies are available from
the bank through Mr. Wright for a

Do-iT-Yourself A TM Display
Sells Service to Customers
It was “show and teller” time recent­
ly at all branches of Cleveland Trust as
the bank presented its customers with
a demonstration of its Docutel Total
Teller machines.
The presentation was designed to
help prospective customers discover
how easy it is to operate the machines.
The display simulated the operation of
the equipment, which the bank has
named “Fast Cashier Bank-in-a-Box.”
An invitation to a do-it-yourself dem­
onstration attracted attention to a color­
ful panel mounted in an aluminum floor
stand poster frame at each of the bank’s
branches. A replica of the Bank-in-aBox had all the features clearly identi­
fied, and all 10 functions of the Total
Teller unit were explained.
A movable wheel caused the correct
instructions to appear in the Bank-in-aBox window so a customer could follow
any transaction from start to finish by
rotating the wheel and watching the
information appear on the face of the
model as it does on the actual machine.
When a person decided to apply for
a free Fast Cashier card as a result of
the demonstration, applications were
readily available from a nearby display.


“If there were any other way, we would have taken it,
but our attorney recommended we file bankruptcy.
That includes what we owe on the family room.

There’s no way in the world we can
pay back the loan.”
Bankruptcies are skyrocketing. And so are losses from unemployment, divorce,
and extended illness. Cover your home im provem ent loan portfolio today with
profitable, guaranteed protection from Insured Credit Services. As the w orld ’s
largest private source for HIL credit loss insurance, w e’re currently working with
over 1,000 leading banks. Call or write William F. Schumann, President, for details.
Federal Reserve Bank of St. Louis

The 'Seller' Rule:
A New Quandary for Lenders

h o ld e r



con sum er

cred it

tra c t is subject to a l! claim s a n d



w h ic h th e d e b to r could ass ert a g a in s t the
seller o f g oo ds

or services o b ta in e d

p u r­

su a n t h e re to or w ith th e proceeds h e re o f.
R e covery

h e re u n d e r

exc eed

a m o u n ts


th e

p a id


d e b to r
th e

d e b to r

h e re u n d e r.

HIS NOTICE may have to be
printed in most consumer loan con­
tracts if a proposal published by the
Federal Reserve Board becomes a regu­
Last year, Public Law 93-637,
the Magnuson-Moss Warranty-Federal
Trade Commission Improvement Act,
became law. Under Title II of that act,
the Fed must substantially duplicate
the trade rules of the Federal Trade
Commission (F T C ) unless the Fed
finds that prohibited acts are not unfair
or deceptive as conducted by banks.
Last November, the FTC published
a final regulation entitled “Preservation
of Consumers’ Claims and Defenses.”
This rule, which takes effect May 14,
1976, makes it an unfair or deceptive
act for a seller to take or receive a con­
sumer credit contract which fails to
contain the above notice. It also makes
a seller unfair or deceptive who accepts
as payment for such sale the proceeds
of a purchase-money loan which does
not contain the notice. The FTC also
proposed an amendment, to take effect
on an undetermined future date, which
requires the notice to be in contracts
associated with purchase-money loans
as defined. Thus, under Public Law
93-637, the Fed has published its no­
tice asking for comments concerning
the F T C ’s amended rule, to determine
if the rule also should apply to banks.
Since the publication of the “seller”
rule, bankers have been concerned
about the rule’s impact upon their ac­
tivities in the indirect financing of
autos, home improvements and other
goods and services, for the rule ob­
viously applies to all indirect financing.


Federal Reserve Bank of St. Louis

Vice President
Continental Illinois National

Because the degree of risk of loss is
one factor in the makeup of price,
along with the competitive environ­
ment, bankers are faced with a severe
problem. How can a banker insulate
his portfolio against increased loss
which is quickly converted into in­
creased cost? It would appear that the
suggestion by the FT C that the in­
creased costs be internalized will be
unacceptable to most financial institu­
tions. With other cost pressures on net
margins, bankers will search for other
methods of minimizing the impact of
the rule on the risk associated with
remaining in the indirect financing
For most markets which are current­
ly non-recourse, it has been suggested
that limited recourse back to the seller,
based upon the equity of the purchas­
er’s claim or defense, is one solution.
This “solution” will probably not be
the panacea in many situations. It will
not necessarily keep the bank out of a
court action, and in order for it to be
viable, the banker will have to be com­
pletely satisfied with each seller’s busi­
ness practices and net worth. The ex­
amination of business practices may
well have to exceed the handling of
customer complaints and warranty
work. Business acquisition practices,

such as advertising, inducements and
compliance with rules such as the FTC
used-car rules, may be of equal import.
Even though the banker may be
satisfied with the business practices of
a particular seller, the financial ability
of the seller to survive a given number
of recourse chargebacks will be highly
important. In the case of auto dealers,
for instance, strong manufacturer- and
dealer-written warranties on new cars
somewhat diminish the problem, but
that is not the only product auto
dealers sell.
If the banker opts for limited re­
purchase arrangements as a solution,
another uncompensated-for incremental
risk may well be present. As a portfolio
generated by a new dealer grows, the
impact on the value of the portfolio
by either a change in his business
practices or a cessation of business may
well be serious, particularly when one
realizes that the incremental risk of
loss is ever present until the last con­
tract is liquidated.
It is understandable that the discus­
sion by bankers centers upon the pur­
chase of auto paper, for more bankers
purchase auto-finance paper than other
kinds, such as home improvement or
other goods and services. While the
considerations are probably the same
in these kinds of paper, they may be
even more severe because of the term
of the paper. A lot of things can hap­
pen to a dealer and his business during
the 10-year span of time of much
home-improvement paper.
Bankers who do little or no indirect
financing can take little comfort over
the prior decision to stay out of the
indirect market. A quick reading of the
Fed’s proposal may lead those bankers
to believe, erroneously, that they re­
main unexposed to the problem of in­
creased risk of loss.
As now proposed, the notice must be
in all contracts used in connection with
a purchase-money loan, defined as: “A
cash advance which is received by a


J f .


Give Am erica w h a t it w ants fo r 76:
m ade-in-Am erica pewter.
By international,by George!


The more you get into premiums
the better we look.
International Incentives
A Division of International Silver Company
Wallingford, Conn. 06492
□ Call us as soon as possible.
□ Send cata log before we meet.
Federal Reserve Bank of St. Louis

America’s Bicentennial celebration presents you with a
once in a lifetime opportunity to offer your customers authentic
replicas of early American craftsmanship—fine pewter holloware
from International Silver,
These premiums of lead-free pewter are made with all the qual­
ity you’d expect from the leading manufacturer of holloware. Plus
the fact it’s one of the broadest lines of pewter products around,
including a commemorative Bicentennial plate.
See the specialists at International Silver for help. Our half
century experience in the premium field can make your promo­
tion truly revolutionary.





“For the time being, we expect savings flows into S&L’s to
remain at a very high level; and savings flows for the year may
not be too much below the (record level of last year!’
Federal Reserve Bank of St. Louis

“With savings up, investors
have to get money out.
L ets go with conventionals
and MGICs
secondary market.”
Federal Reserve Bank of St. Louis

Today, experts in financial markets know you always check
the largest, broadest m arket first. T hat is what M G IC s
secondary m arket is. And now it can work for you better
than ever before.
At M GIC, we feel secondary m arket is so important w e’re
calling this “the year of the secondary m arket’.’ And we
are taking several m ajor steps to help you when you
need us. They are:
• Doubling our staff of secondary marketing special­
ists, already the largest in the industry, both at the
hom e office and in the field. T h ese people are in
constant contact with buyers.
• Comm itting the skills and talents of our sales force
of m ore than 1 0 0 representatives to finding
investors who are ready to buy loan packages
right now.
• Increasing our counseling services. W hether you
are large or small, you can now receive additional
assistance or advice in getting negotiations started.
You also get expertise on how to put together all of
the docum entation to m ake your buyer’s
decision easy.
T hen there is the way in which we work with you —always
with speed, reliability, and with your profits in mind.
For these reasons we say —when it com es to m ortgage
insurance there is no substitute for experience.
M GIC experience.


Because experience pays.
Mortgage Guaranty Insurance Corporation, a Subsidiary of MGIC Investment Corp„ MGIC Plaza, Milwaukee, W1 53201

consumer . . . which is applied . . . to
a purchase of goods or services from a
seller who (1 ) refers consumers to the
creditor or (2) is affiliated with the
creditor by common control, contract
or business arrangem ent” (emphasis
Little guidance can be found in the
proposal as to which contracts must
contain the notice. If, unknown to your
bank, a seller casually suggests to a
customer that your bank is a good place
to do business, must the notice be in­
cluded in the contract? Because the
word “refer” is not defined in the pro­
posal, and other sources of interpreta­

tion are of little help, it is far from
clear what conduct is intended to be
regulated, and it is virtually impossible
to discern what a creditor can do to
stop seller referrals.
Lacking a clear course of action, a
prudent creditor may have to include
the notice whenever an applicant in­
dicates that the proceeds of the loans
will be used to purchase consumer
goods from a particular merchant. That
course is not without its pitfalls. What
can a creditor do to limit his risk when
a customer indicates he is purchasing
the goods from a seller who the creditor
knows is likely to misbehave? A second

..the double duty
24 hour depository
Nightwatch. Meilink’s combination bag and envelope
depository. On duty all night and day with unique security
features that assure extraordinary protection. Resists “fish­
ing” and “trapping.” Carries the Underwriters’ Laboratories
label. And exceeds specifications and requirements of the
Bank Protection Act.
Side-by-side hoppers provide flexibility and convenience.
And Nightwatch’s totally mechanical operation has only
three moving parts......eliminating gears, chain drive and
power assist.
Self-closing counter-balanced hopper door. Mortise
cylinder type lock with replaceable core. Corrosion-resis­
tant, high-strength alloy and steel construction. Exterior
finish of stainless steel plate.
Receiving chests come in four sizes with custom sizes
optional. Also available in bag drop only version.
M eilin k ’s N ightw atch, th e d ep o sito ry that giv es y o u m o r e
s e rv ic e a n d m u c h m o r e security! F o r details , call o r write.


e ilin h

* Patent Pending

B A N K E Q U IP M E N T ^
3100 Hill Avenue, Toledo, O hio 43607 • Phone (419) 255-1000

Federal Reserve Bank of St. Louis

part of that question ought to be, what
can he do without committing trade
libel? Because the F T C ’s seller rule and
the Fed’s proposal offer virtually no
guidance, these questions appear to be
rhetorical—clearly not answerable now.
The second part of the Fed’s pro­
posal may give the creditor a like
amount of trouble. The phrase “busi­
ness arrangement” is defined in the pro­
posal as: “Any understanding, pro­
cedure, course of dealing, arrangement,
formal or informal, between a creditor
and a seller, in connection with the
sale of goods or services to consumers
or the financing thereof.”
When a consumer finances an auto
with a loan directly from a bank, it is
not uncommon for the check represent­
ing the proceeds to be made payable to
both the consumer and the dealer. In
many cases, a special endorsement form
is on the back of the check which, in
effect, requires the dealer to list the
bank’s lien on the title. Given the defi­
nition of “business arrangement,” is this
the type of understanding, procedure,
or arrangement which will place that
loan under the proposal? Even if there
is no referral, and the creditor would
not recommend doing business with the
dealer involved, following the accepted
procedure of protecting a lien could
place the creditor in a position of vir­
tually warranting the conduct of the
seller, even though there is no formal
mechanism to charge back the loan to
the misbehaving dealer.
Bankers choosing to remain in the
consumer finance business, either di­
rectly or indirectly, will certainly be­
come well acquainted with their at­
torneys while trying to devise methods
by which their portfolios can be in­
sulated from the increased risk of loss.
Those bankers who fail to devise meth­
ods to minimize their exposure may
have to look to the stiffening of credit
criteria or increasing their interest rate
for their solution. Those choosing the
last two solutions will be contradicting
the F T C ’s hypothesis that its new rules
will neither increase the consumer’s
cost nor decrease the availability of
credit. * *
Basketball Benefit:

Bank To Give Proceeds
Of Tourney to Charity
Citizens Fidelity Bank, Louisville,
has named the Old Kentucky Home
Council, Boy Scouts of America, as the
charitable organization that will benefit
from proceeds of the bank’s 1975 Holi­
day Basketball Classic.
The tourney generated $7,500 in
funds for the American Cancer Socie­
ty’s Kentucky Chapter in 1974.

At First National Bank of
Kansas City, we offer a tradition
of excellence. To correspondent
banks. Retail and commercial
customers. Investors.
Since 1886 this tradition has
been dependent on more than
stately architecture and specific
bank personalities.
Excellence is built by a con­
sistent policy and commitment
that permits the bank to grow
with strength one generation to
the next, no matter what the
economic climate.
The results are one of the
largest capital structures in the
region, a liquidity position re­
spected throughout banking and
long-standing correspondent
Our correspondent bank com­
mitments mean that we stand
behind our customers through
good times and bad. That our
word is good. That our people
you see today will be the people
you see tomorrow. And that we
nave a depth of staff so that
more than one person can
answer your questions without
passing the buck.
If you are looking for
strength, dependability and
experience in a correspondent
bank relationship, you can
expect all this as well as service
and commitment from the First
National Bank. It’s our tradition.

Federal Reserve Bank of St. Louis

An Affiliate of First National Charter Corporation. Member FDIC,
(816) 221-2800

Extended Loan Credit Terms Make Appearance
To Compensate for Higher Auto Prices
^T^HE ESCALATING prices of new
autos are gradually being reflected
in the granting of extended loan credit
terms by banks.
ih e Dyna Group Financial Center
banks in St. Louis are offering 48month new-car loans to good credit
risks. Banks belonging to the group in­
clude Hampton Bank, St. Louis; and
Clayton Bank, Crestwood Bank and
Ellisville Bank, all located in the St.
Louis suburban area.
For a limited time, the banks will
extend 42- or 48-month terms to custom­
ers desiring $3,500 or more and who
are AA credit risks and have been on
the same job for three years or have
held no more than two jobs in the last
five years.
The banks claim to be the first in
the St. Louis area to offer extended
terms, and the offer was made only
after local auto dealers were contacted
to solicit their support. The minimum
price of an auto being financed over
an extended period is $5,500, according
to a Dyna Group spokesman.
A spot survey of banks in the MidContinent area shows that a number of
banks are offering extended terms. One
bank in Kentucky reported that it was
forced to offer 48-month financing be­
cause a nearby bank went to 60-month
terms and finance companies were offer­
ing more liberal terms than the normal
36 months.
In order to secure auto financing
business, the bank recently conducted
a county-wide incentive program for
auto dealers, offering a 15-piece crock­
ery set to every dealer for each auto
installment loan contract placed through
the bank. The bank shipped the crock­
ery sets to the dealers for distribution
to members of the dealers’ sales forces.
Deposit Guaranty National, Jackson,
Miss., offered 42-month terms last year
in order to help consumers handle the
increasing costs of autos. Arkansas Bank,
Hot Springs, is offering 42-month terms
to help whittle down the size of pay­
ments because of the higher prices for
A bank in Louisiana is seriously con­
sidering 42-month financing and plans
to test-market the concept. However, a
Federal Reserve Bank of St. Louis

spokesman expressed reservations about
promoting auto loans due to the recent
Federal Trade Commission holder-indue-course regulation that removes the
protection banks once enjoyed in this
A spokesman for a bank in New
Mexico stated it was forced to go along
with a 42-month auto loan policy due
to the prohibitive cost of new autos.
First Security National, Lexington,
Ky., offers 42- and 48-month terms as
well as lowered rates and cash-dealer
incentives. According to Vince G. Ricci,
assistant vice president, the extended
terms are offered to combat higher
sticker prices.
First Mississippi National, Hatties­
burg, put on a rebate program early
last year at about the same time auto
manufacturers were offering factory re­

It gives you more months to pay
So you pay less per month

Clayton Bank EllisviMe Bank
A d fo r D y n a G ro u p B anks, St. Louis, ann ounces
4 8 -m o n th



lo an s

fo r

tr ia l

p e rio d .

According to Paul W. McMullan,
chairman, the bank felt the need and
responded to the economic conditions
that were prevalent by offering an in­
centive to stimulate auto sales. For one
month, the bank gave $100 rebates to
anyone financing a new car with the
bank. Those customers dealing with the
bank directly received their rebates on
the spot. Those financing through deal­
ers on the bank’s dealer finance plan
received their rebates in the mail.
“We saw no way to lose,” Mr. Mc­
Mullan said. We sincerely wanted to
stimulate auto sales in our markets. The
program was no gimmick. We paid for
it from our promotions budget and not
by raising our finance charge.”
The bank s Jackson branch financed
46 new autos during the program, al­
most double what it had done a month
previously. The Hattiesburg and Gulf
Coast results reflected increases of 32%
and 28%, respectively, Mr. McMullan
At the end of 1975, First Mississippi
National sponsored a Christmas bonus
promotion, which was a rebate program
tied into the holiday. Dealers partici­
pated financially in this program by
sharing the overall cost, Mr. McMullan
Customers financing autos were
given a choice of one of four nationally
known home appliances at no cost. The
appliances were a hair dryer, a toasteroven, an electric knife and a coffeemaker.
Mr. McMullan said this program was
not as effective as the rebate plan but
neither was it as expensive for the bank.
A total of 280 autos was financed during
the two-month promotion.
Speaking against the extension of
credit terms was a St. Louis banker,
who said that his bank will not extend
credit terms beyond 36 months because
an auto’s life expectancy is no longer
than three years. When autos start
breaking down, he said, people don’t
want to keep making payments on
The Dyna Bank spokesman said that
most auto owners don’t seem to be too
concerned with the total cost of an
auto, but they want the monthly pay-



Joe Blank, Mike Miller and Ron Deal. It
seems they have a couple of key phrases that
work consistently well. For us, and our corre­
spondent banking friends.
They go like this: What if? Why don't we?
Why not try this? (and) I wonder why nobody
else thought of that?
We didn’t get to be the largest bank in the
state by offering you the same tired solutions
over and over again. We keep it loose. Because
every bank, and every banking problem, are
Federal Reserve Bank of St. Louis

unique. And were flexible enough to find the
best solution for you. Because we’ve got people
who won’t leave well enough alone. Call us toll
free. In Tennessee, T 8 0 0 -3 4 2 -8 2 4 0 . In other

states, T 8 0 0 -2 5 T 8 5 1 4 .


A m erican

First Am erican Center, Nashville


M em ber FDIC


ments to be manageable. In its advertis­
ing for the 48-month terms, Dyna Bank
published figures showing the amount
of the monthly payment with four-year
terms. A §5,000 loan is repaid in pay­
ments of $129.16 per month; a $4,000
loan in payments of $103.33 per month;
and a $3,500 loan in payments of
$90.41 per month. Annual percentage
rate is 10.98%, according to the adver­
In some areas, auto dealers are
against extended terms because they

feel people will purchase fewer cars
if they have to make extended pay­
ments. A counter argument to this is
the fact that many people today say
they plan to keep autos longer than
they did formerly, due to the higher
prices of new autos. Those in favor of
extended terms point out that the terms
are good for auto sales, since they en­
courage people to buy cars who felt
they could not afford to under the
monthly payments required by 36month rates. * *

Municipal Bonds

Banks Push Auto Loans
With Premiums, Incentives
Banks not offering extended credit
terms for auto loans (see adjoining
article) are nevertheless promoting the
loans by the use of premiums.
National Bank of Commerce, Mem­
phis, is currently offering free citizen
band (C B ) radios to customers taking
out auto loans of at least $3,000 over
three-year terms. The bank expects to
obtain 1,000 new loans.
First National, Martinsville and
Henry County, Va., offered customers a
choice of a tote bag, camera or auto
emergency kit when they financed an
auto at the bank.
Charter banks of Overland and Jen­
nings, Mo., offer their “PAL” loans
( Charterbanker’s Pre-Approved Loan)
that enable customers to secure their
loans before purchasing new autos.
This enables them to deal on a “cash”
basis, the bank’s advertising states.
An Indiana bank provided free car
washes to auto loan customers, and a
bank in Missouri paid for the first year’s
maintenance on cars it financed.
A bank in Ohio publishes a chart
showing typical monthly payments on
auto loans, and it has been credited
with bringing new business to the bank.
Customers actually clip out the charts
and bring them to the bank when ap­
plying for auto loans. A spokesman said
the chart enables customers to compare
rates with those of other lenders.
ABA Publishes Analysis
Of EFT Legislation



Y o u r " C o rres p o n d e n t” f o r M u n ic ip a l B o n d s

in v estm en t B a n k ers • M u n ic ip a l B o n d s

(816) 221-4311

Federal Reserve Bank of St. Louis

WASHINGTON, D. C.—A 40-page
analysis of various approaches taken
by state legislatures on E F T has been
published by the American Bankers
Originally published as a chapter in
the ABA’s State Banking Law Service,
the book is entitled R em ote E lectronic
Facilities—An Analysis o f E nabling
Acts. The book includes:
• Nontechnical descriptions of the
contents of statutes, state by state.
• An outline of policy considera­
tions in E F T lawmaking and a review
of how states have dealt with such
issues as branching, sharing, out-ofstate entry, geographic limitations,
scope of regulatory authority in policy
making and supervision.
• A quick-reference matrix compar­
ing the provisions of state statutes.
• Definitions of federal regulations
and rulings.
R em ote
E lectronic
Analysis o f Enabliiig Acts (publication
number 029300) is available through
the ABA Order Processing Department.



...sin d y o u 'll find detiiiled
inform ation ab o u t e v e r y sin gle one
in th e A o rtli A m erican
and In te rn a tio n a l Editions of
P o lk 's W o rld B a n k D ire c to ry

I M / P O I

J v


C O .

p u b lis h e r s


P. 0 . B o x 1 3 4 0 , N ashville, T e n n e s s e e 3 7 2 0 2
T e le p h o n e 6 1 5 /8 8 9 - 3 3 5 0 C able A d d ress E N C Y C O B A N K

Federal Reserve Bank of St. Louis

Fred N. Coulson, Jr.
Joe Williams

"You do the im possible ultim ately
the difficult, im m ediately.''
Joe Williams was a familiar figure in early
Commerce days. Red-haired, nattily dressed,
he was one banker who always seemed to
remember your name.
Joe Williams headed the Commerce
Correspondent Department during the
turbulent time of the 30’s. He later became
president of the bank. Joe believed that
Commerce bankers should do the impossible
ultimately—the difficult immediately.
That included pioneering the nation’s first
24-hour transit department in 1928. A transit
department so complete that banks all over the
country turned to Commerce for advice. It also
included special attention to each and every
bank we served.




C o m m e r c e Ba n k
o f K a n s a s C it y
9th & Main

Federal Reserve Bank of St. Louis

There was no end to what Joe believed
could and should be done for his customers.
Banking is more sophisticated today, but
Fred N. Coulson, Jr. head of our
Correspondent Department, still believes in
complete service for our customers.
Fred’s people become totally involved with
the banks they serve. They continue to find
new, innovative means to help correspondent
Maybe that’s why approximately one out of
every ten banks in the country maintains a
relationship with Commerce Bank of
Kansas City. Commerce Bank, what can we
do for you?

10th & Walnut

12th & Charlotte
M em ber FDIC








Convention 'First-Timers'

These new faces w ill be
representing city-corresp o n­
dent b an ks at state conven­
tions this y e a r.

Texas Convention
• George William Porter, a corre­
spondent banking officer for Commerce
Bank, Kansas City, joined the bank in
1973 as a management trainee follow­
ing graduation from Drake University
with an MBA degree.
• John Marshall McGee is a corre­
spondent banking representative at
Commerce Bank, Kansas City. He
joined Commerce Bancshares in 1974
as a management trainee at Commerce
Bank, Columbia, Mo.
• Thomas B. Rogers is an assistant
vice president at National Bank of De­
troit, which he joined 10 years ago. He
represents the bank in the western U. S.


• S. Bradford Sledge joined Frost
Bank, San Antonio, in 1972 and is cur­
rently an assistant vice president in the
correspondent banking department. He
is a member of AIB.
• Stanley A. Latham is a division
loan representative for First National,
Chicago, assigned to the western terri­
• Stephen H. Paneyko is an assisttant vice president in area four at Citi­
bank, New York City. He joined the
bank six years ago, following service
with Philadelphia National.
• Fred C. Danforth is an account
officer at Citibank, New York City. He
joined the bank in 1973 and repre­
sents the bank in Oklahoma, New Mex­
ico and Texas.
• Bradford M. Johnson is an ac­
count officer at Citibank, New York
City. He joined the bank in 1972 and
covers Oklahoma, New Mexico and


Federal Reserve Bank of St. Louis



AMBI Convention
• John W . Ballantine is a loan offi­
cer for First National, Chicago. He
is responsible for handling bank and
HC credit in the bank’s six-state central
• Robert E. Hahn is a loan officer in
the central territory for First National,
Chicago. His account responsibility is
in Michigan.
• Mary Jo Franklin is a loan officer
with First National, Chicago, with ac­
count responsibility in Illinois.

Louisiana Convention
• Gary E . Metzger joined Mercantile
Trust, St. Louis, in 1974 as an analyst
in the credit department. He joined the
central group of the banking depart­
ment last May.
• John V. Raymond Jr. is a corre­
spondent bank officer at Bank of New




Auburn University Educators
To Be in Spotlight May 13-14
As Ala. Young Bankers Meet



Orleans. He joined the bank in 1972
and has been with the correspondent
bank department since last October.
• Stephen H. Paneyko, assistant vice
president, Citibank, New York City,
covers the West and Southwest and
serves as unit head for Texas. He
joined the bank in 1970.
• Adona Yelton is an account officer
in area four at Citibank, New York
City. She joined the bank in 1969 and
represents the bank in Alabama, Ar­
kansas and Louisiana. Photo not avail­



Arkansas Convention
• Al Montgomery has been with
First National, Memphis, since 1971
and took part in the bank’s manage­
ment training program. He joined the
correspondent department last June.

Kansas Convention
• Gary W. Curtis is an agriculture
representative for American National,
St. Joseph, Mo. He joined the bank in
1975 and calls on customers in Kansas
and Missouri.

• James W. Crawford Jr. joined De­
posit Guaranty National, Jackson, Miss.,
in 1971 and is an assistant vice presi­
dent in the correspondent bank de­


Imagination in

Correspondent Banking.
At Union Bank in
Montgomery, Don Lamon
and his associates have
brought imagination and
innovation to Corre­
spondent Banking, while
maintaining the friendly
personal service that
Union Bank has been
noted for since 1901.

Alabama's Largest Independent Bank.

Federal Reserve Bank of St. Louis

Shores Lodge will host the annual Ala­
bama Young Bankers Section meeting
May 13-14. Featured speakers will be
Joe L. Boyer, Robert C. Maxson and
F. Morgan Simpson of Auburn Univer­
sity, Montgomery.
Registration for the event is slated
to begin at noon May 12. Topping off
that afternoon will be a happy hour.
The first general session is scheduled
to commence at 9 a.m. Thursday, May
13, with an address by Dr. Boyer, en­
titled “Inside Today’s Schools.” At 9:45,
the action labs will begin. Dr. Boyer
will conduct one called “Planning the
Instructional Episode,” Dr. Maxson will
oversee “Understanding the Instruc­
tional Setting,” and Dr. Simpson will
guide the Young Bankers through
“Techniques of Instruction.”
Each lab will be repeated from 11noon that day and again on Friday,
from 9-10 a.m.
Thursday evening there will be a
happy hour, followed by dinner.
The second general session, Friday,
May 14, will begin at 10:15 a.m., fol­
lowing the action labs. Dr. Simpson,
Dr. Maxson and Dr. Boyer will speak
on the “Techniques of Instruction.” Dr.
Maxson will be the spotlighted speaker
during the third general session at
11:30. His topic will be “The Chal­

vv A ,
£ ;




£ ft


\ \


1 %
4 5




< r

ALABAM A 36104


Friday evening an awards banquet is
President of the Young Bankers is
William R. Haley Jr., vice president,
Alexander City Bank. He began his
banking career with Bank of Heflin,
where he attained the position of as­
sistant vice president. From there, Mr.
Haley went to Exchange National,
Montgomery, where he was vice presi­
dent and cashier. In 1970, he was voted
the state’s outstanding group chairman
in the Young Bankers Section.
Kay Ivey, assistant cashier-public re­
lations and advertising, Merchants Na­
tional, Mobile, is the Young Bankers
vice president, the first woman to be
elected to that office. She joined her
bank in 1970 and was listed in the
1971 Outstanding Young W om en of
A m erica, was the first woman to win
the AIB’s Mobile Chapter public speak­
ing contest, 1972, and in 1973 was
named as that chapter’s “Woman of
the Year.”
Eugene Boyd, executive vice presi­
dent and cashier, Jacksonville State, is
the Young Bankers treasurer. He began
his banking career in 1958 with Com­
mercial National, Anniston. In addi­
tion, he is a director and a course in­
structor with the AIB.
Serving as secretary of the Young
Bankers Section is J. R. Jones, vice
president, Escambia County Bank, Flomaton. He joined his bank in 1972 as
assistant vice president, advancing to
vice president in 1974. Mr. Jones cur­
rently is vice chairman, Ala BA Group

Companion to Money Market Management, Inc.

* Invested exclusively in U.S. Government Securities
maturing in one year or less.
* Provides the yields of various governm ent issues
with different maturity dates.
* No minimum holding period.
* Stability of principal — constant net asset value $1.
* Portfolio priced at amortized cost.
* Provides first day’s interest; dividends 365 days a year.
* Telephone transfer of monies.
I * No charges to buy. No charges to sell.
M in im u m in v e s tm e n t: $100,000— 90 d a y a c c u m u la tio n p e rio d . All
e xpe n se s w a iv e d u n til J u n e 1, 1976.

For more com plete inform ation on TRUST FOR SHORT-TERM
U S GOVERNMENT SECURITIES management fees and
expenses call our Bank Service Desk. Ask fo r our lite rature
and prospectus. Be sure to read before you invest. Call toll
free: 800-245-2423.

Dept. ST-4

421 Seventh Avenue, Pittsburgh, PA 15219________

A n American A cco u n t':

ABA-Sponsored Movie
Traces Banking Evolution
As part of its centennial, the Amer­
ican Bankers Association has produced
a half-hour motion picture documen­
tary, “An American Account: The Story
of Banking.”
The film, which has been offered to
banks prior to general distribution,
takes a look at the evolution of bank­
ing and currency in this country, trac­
ing the growth of banking in America
from colonial days to the present.
The ABA is offering the film on a
free-loan basis and banks may buy
copies for showing in the community
or for donation to local schools and
libraries. In addition, the movie may
be personalized with the bank’s own
Included with the film is a support
package containing an assortment of
materials for generating awareness and
Federal Reserve Bank of St. Louis

In 1849 we opened with
a statem ent you could bank on.
It’s worth repeating.
“It is intended to encourage the industrious
and prudent, and to induce those who have
not hitherto been such, to lay by something
for a period of life when they will be less
able to earn a support."

and we’ve been taking good care
of people’s money ever since.

L h V D E T R O IT
X H f Ej T R U S T

Member FDIC




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

^ A D / 7 7

S p rin g fie ld





member f.d.i.c.- federal reserve system

5 E RV X
PHONE (217) 753-6000

Federal Reserve Bank of St. Louis


AMBI Convention
(Association for Modem Banking in Illinois)
Chicago, III., M a y 2 -4 , L in co ln sh ire-M arrio tt

FIRST SESSION, 9:15 a.m., M ay 3
Welcome— Lester A. Kassing, president, AMBI, and presi­
dent, Jefferson Trust, Peoria.
Address— "Where Do We Stand':1” Mr. Kassing.
Panel— “Our Competition— Our Constraints—What Are
They? What Are They Doing Now? What Does the
Future Hold?” Panelists: Walter J. Charlton, AMBI
executive committee chairman and president, First
Trust, Kankakee; Robert P. Abate, president, Elgin
National; Arthur "Ron” Swanson, legislative representa­
tive, Springfield; William D. Plechaty, senior vice presi­
dent, Continental Illinois National, Chicago; and George
Phelan, executive vice president, First National, Boston.
Address— “How the Financial Editor Looks at Commercial
Banking”—Albert L. Kraus, editor, M oney M anager
Panel— "The Political Action Scene.” Panelists: James Cassin, senior vice president, First National, Chicago;
Gerald Sinclair, vice president, AMBI, and executive
vice president, Salem National; Jay K. Buck, senior vice
president, Northern Trust, Chicago; Robert B. Maher,
legislative representative, Springfield; and Mr. Swanson.
SECOND SESSION, 2 p.m., M ay 3
Address— “What’s New for Bankers With the Construc­
tion and Housing Industry”—James S. Dailey, executive
vice president, First National, Chicago.
Address—"W hat’s New for Bankers With Bank Insurance
Programs and Risk Management”— Robert W. Marshman, vice president, Scarborough & Co., Chicago.
Address— “What’s New for Bankers With Agriculture”—

W. Ross Hostetter, senior vice president, First National,
Address— “What’s New for Bankers With E F T S Programs”
—Phillips M. Montross, executive vice president, Mid­
west Automated Clearing House Association, Chicago.
Address— “What’s New for Bankers With Bank Marketing”
— Kent Stickler, vice president, Illinois National, Springfield.
THIRD SESSION, 9 a.m., M ay 4
Address— “The Municipal Crisis and Other Current Prob­
lems in Commercial Banking”—James Baker, senior
vice president and economist, Fidelity Bank, Oklahoma
Panel— “Bank Asset Management—the Challenge Now
and in Our Future.” Panelists: Mr. Baker; James E.
Gatton, senior vice president, United Bank of Illinois,
Rockford; Dean E. Kamper, president, First National,
Belleville; Larry L. McGregor, president, Wheaton Na­
tional; and Richard Thomas, president, First National,
Report of the Trust Committee— Kenneth Roeh, vice pres­
ident and trust officer, First National, Rockford.
Report of the Education Committee— Loren M. Smith,
president, United Bank of Illinois, Rockford.
Address— "Objective: a Profitable Trust Department”—
Ray Myers, executive vice president, Continental Illinois
National, Chicago, and chairman, American Bankers
Association Trust Division.
Business Meeting.
Board Meeting.

Bicentennial Is Running Theme of ÀMBI Convention
HE TH IRD annual convention of
the Association for Modern Banking
in Illinois (A M BI) is scheduled for
May 2-4 at the Lincolnshire-Marriott in
Chicago. The convention’s schedule of
activities promises a busy and informa­
tive time for those in attendance.
The running theme for the event is
the bicentennial, and scheduled are a
number of films, slides and a reception
following the theme of the nation’s
200th anniversary.
Registration for the AMBI conven­
tion is slated to begin Sunday, May 2,


in the main lobby area at 2 p.m. At
6:30 p.m., a cocktail-buffet reception
with a “make-believe ballroom” theme
will me held, wherein films of big
bands such as Glenn Miller, Harry
James and Tommy Dorsey will appear
on a movie screen playing songs of
their era.
The bicentennial will be the opening
feature of the first business session May
3, with a film and slides on the topic.
Following that will be a welcome and
address by AM BI President Lester A.
Kassing, president and CEO, Jefferson

Federal Reserve Bank of St. Louis

Trust, Peoria. His speech is entitled
“Where Do We Stand?”
Dr. Paul Nadler, professor of busi­
ness administration at Rutgers Univer­
sity, New Brunswick, N. J., will be the
luncheon speaker May 3. He will dis­
cuss “Banking Constraints, Banking
Competition and Financing American
Industry.” That evening at 6 p.m., the
bicentennial dinner and “ ’76”-theme
reception will begin. The dinner is en­
titled “What They Ate on the Occasion
of the Declaration of Independence
Banquet,” and is by special invitation

of “George and Martha Washington.”
Tuesday, May 4, will feature a 12:30
pan. cocktail reception followed by
lunch. Luncheon speaker Dr. Maurice
Mann, president, Federal Home Loan
Bank, San Francisco, will answer the
question, “What Does Our Competi­
tion Think of Us?”
A number of social events are slated
during the AMBI convention, beginning
with a cocktail-buffet reception hosted
by the Chicago Loop banks from 6:309 p.m. on Sunday, May 2.
AMBI has planned the following
events for spouses of members: On
Monday morning, a 9:30 continental
breakfast will be held, followed by a
discussion by the chef of the Marriott
Hotel on “How To Make Party Plan­
ning Easy.” A two-hour shopping tour
to Long Grove Village, a turn-of-thecentury town, will begin at 2 p.m.
Tuesday, May 4, will be kicked off by
a 9-11 a.m. speed-reading course by
Joyce Turley, president, Dimentional
Reading, Inc., Tiburon, Calif.
Officers of AMBI, in addition to Mr.
Kassing, are: Alvin J. Boutte, president
and CEO, Independence Bank, Chicago
—vice president; Gerald Sinclair, exec­
utive vice president, Salem National—
vice president; Walter B. Lohman,
president, First National, Springfield—
treasurer; Robert C. Humphrey, presi­
dent, State National, Evanston—secre­
tary; and Henry E. Seyfarth, chairman,
First National, Blue Island— chairman.
AMBI executive committee chairman is
Walter J. Charlton, president, First
Trust, Kankakee.
Mr. Kassing entered banking in 1958
with Indiana Bank, Fort Wayne. He
joined his present bank, Jefferson Trust,
Peoria, as president in 1971.





Mr. Boutte was a founder of Inde­
pendence Bank, Chicago, in 1964, and
served as vice chairman until he was
elected president in 1970. AM BI’s other
vice president, Gerald Sinclair, present­
ly is executive vice president, Salem
National, and is a past president, TriCounty Bankers Federation.
Association Treasurer Walter Loh­
man began his financial career as an
accountant with the U. S. Department
of Agriculture in 1939. One year later,
he joined Pleasant Plains State, which
he left in 1942, going to State Bank,
Ashland. He was named president of
that bank in 1957. He joined First Na­
tional, Springfield, in 1962. In 1966 he
was named executive vice president and

AMBI Goals Are Our Goals . . .
We salute the job AMBI has done since its
inception in 1973. It has made great strides.
May th is th ird annual convention bring the
goals closer to attainm ent.


t i o





a n w

C o llin sville and M issouri Aves. • 271-1000

iiv lr e



E s ta b lis h e d 1901

Federal Reserve Bank of St. Louis


was elected president one year later.
Robert C. Humphrey, AM BI’s secre­
tary, is president, State National, Evans­
ton, and serves in a number of capaci­
ties with a variety of other organiza­
Mr. Seyfarth is a member of the
Chicago law firm of Seyfarth, Shaw,
Fairweather & Geraldson, which he
joined in 1945, following seven years
with another Chicago law firm. He is
a member of the Chicago, Illinois and
Federal Bar associations and is chair­
man of Union National, Chicago, and
First National, Blue Island. He is one
of the organizers of AMBI.
Mr. Charlton entered banking with
First Bank Stock Corp., Minneapolis,
and joined First Trust, Kankakee, in
1950. He was elected a director there
in 1953 and executive vice president in
1962. He was elevated to president in
1965. Mr. Charlton also is chairman,
First Bank, Meadowview, is an AMBI
organizer and served as its president,
1973-75. * •

More Can Vote in '76
After Registration Drive




Thanks fo Bank:

U n io n



The Denver voter registration roles
have been increased by 203, following
a mobile registration program sponsored
by First National in conjunction with
the City Election Commission.
The registration was held in a mobile
“booth,” a special bus provided by the
Regional Transportation District. The
vehicle had been decorated for the na­
tion’s 200th anniversary with a starspangled border and a minuteman
carrying a red, white and blue banner.

of people joined a waiting list for a
second shipment of the items.

In Chicago:

The Money Store Opens;
Makes Low-Interest Loans
Harriscorp Finance, Inc., a wholly
owned subsidiary of Harris Bankcorp.,
Inc., Chicago, has opened The Money
Store, a low-interest-rate personal-loan
Located on the top floor of the sevenstory atrium of the Water Tower Place
shopping complex on Chicago’s Near
North Side, The Money Store is the
first to be opened by Harriscorp F i­
nance. The store will feature simpleinterest loans.
At a Money Store, a customer may
establish a revolving credit line and
write an unsecured loan with drafts
that can be used like checks. No cost
is incurred by the customer until the
draft is written or when cash is drawn
— via the Money Store card—from the
Money Store Machine. The machine at
the new location operates until mid­
night seven days a week.
In addition, The Money Store makes
loans to approved customers of up to
$15,000 on a regular installment basis.

The 'C lin cher':

Continental Bank Depositors
Can Get Polaroid Cameras

G. W a r d Stearns, p res., B ank o f N a p e r v ille ,
lim ite d -e d itio n
c o m m e m o ra tiv e
p la te
Ja n e
S indt,
p re s id e n t,
N a p e r v ille
H e rita g e Society. Iro n s to n e p la te s w e r e o ffe re d
as " g o o d w il l" p re m iu m to th o s e d e p o s itin g




b o re



M a r tin -

M itc h e ll M u s e u m , lo cal la n d m a r k .

began offering the plates, which bore
a picture of a local landmark. Those
depositing $200 received a plate.
Statement stuffers were sent to all
checking and savings depositors; ads
were run in the local weekly news­
paper and point-of-purchase displays
were set up in the bank lobby.
How popular was the promotion?
Bank officials state that quite a number

Customers depositing $300 or more
at Continental Illinois National, Chi­
cago, have the opportunity to purchase
a Polaroid “Clincher” camera at belowretail cost.
Price of the camera, which takes
both color and black-and-white photo­
graphs, is $10.45, tax included. While
the “Clincher” isn’t available at retail
stores, it is comparable to Polaroid’s
“Square Shooter,” a $25 camera.
In the promotion, Continental de­
positors receive a certificate, which can
be used to redeem the camera. Those
making deposits by automated teller
machine are mailed a certificate and
may obtain the “Clincher” by mail or
in person.
To get the promotion off to a start,
the bank had representatives from
Polaroid in the lobby during the noon
hour the first week, taking photos of
interested customers with the cameras.

SINCE 1836

S ta n le y G. H a rris Jr. (I.), v. ch., H a rris B a n k ­
co rp ., In c ., C h ic a g o , d e m o n s tra te s c a s h -lo a n ­
d isp en s in g m a c h in e to Joseph A B u rn h a m , pres.,
M a r s h a ll Field & C o ., C h ic a g o . M a c h in e is
lo c a te d a t M o n e y S to re, p e rs o n a l lo a n office
a t W a te r T o w e r P lace, C h ic a g o . Store is o p e r­
a te d by H a rris c o rp F in an ce , Inc., s u b s id ia ry

bank & tru /t
com pany


Thank You':

Bank Holds Plate Offer;
Builds Customer Good W ill
Looking for a good way to say “thank
you” to your bank’s customers and
build good will? Bank of Naperville,
111., used a commemorative plate offer
to do just that.
No preliminary research was under­
taken prior to the promotion’s intro­
duction, but sketches of historic sites
had been well received by the commu­
nity in prior years. Having the objec­
tive of good public relations rather than
building deposits, Bank of Naperville
Federal Reserve Bank of St. Louis


Third and Belle Streets
(Complete Banking Service)
Sixth and Belle Streets
(Drive-In, Walk-Up Only)



Whatever your management problem,
chances are that we have solved it be­
fore in our more than ninety years of
banking experience. Or, that we know
someone who has. Helping correspon­
dent banks to grow has been what
banking has been all about at the Whit­
ney for almost a century. We’re ready
to lend our men and our resources to
making correspondent banking better
Federal Reserve Bank of St. Louis

for you, better for us. Ask your man
from the Whitney today!


Louisiana Convention

N ew O rle a n s , M a y 1-3


J. D. A c k lin J r., LBA p res., is ch. & p res.,
P la n te rs B a n k , H a y n e s v ille , w h ic h he jo in ed
in 1 9 4 7 , a d v a n c in g to his p re s e n t p os itio n
in 1 9 7 2 . M r. A c k lin is a fo r m e r tre a s . o f
th e LBA J u n io r B a nkers Section.

ONE SESSION ONLY, 9:30 a.m., M ay 3
Call to Order—J. D. ACKLIN JR., president, Louisiana Bankers As­
sociation, and chairman and president, Planters Bank, Haynesville.
Invocation— DONALD D ELCAM BRE, president-elect, Louisiana
Bankers Association, and president, State National, New Iberia.
President’s Message—J. D. ACKLIN JR.
Treasurer’s Report—J. B. FALGOUST, treasurer, Louisiana Bankers
Association, and executive vice persident and cashier, Bank of Va­


Election of American Bankers Association Councilman—PAT W IL ­
LIS, American Bankers Association vice president for Louisiana,
and vice president, Fidelity Bank, Baton Rouge.
Address—W. LIDDON M ePETERS, American Bankers Association
president-elect, and president, Security Bank, Corinth, Miss.
Report of Board and Executive Vice President— R O BERT I. D ID IE R
JR., executive vice president, Louisiana Bankers Association, Baton

Resolutions— PAT W IL L IS, chairman, Rules and Calendar Commit­
tee, Louisiana Bankers Association.

LBA p re s .-e le c t is D o n a ld D e lc a m b re , pres.,
S ta te N a t'l, N e w Ib e r ia . In fin a n c e m ost o f
his life , M r. D e lc a m b re jo in ed S ta te N a t'l
in 1 9 5 5 a n d w a s n a m e d pres. 12 y e a rs a g o .

Committee Reports.
Reports From Groups.

H e served th r e e y e a rs on th e
Fed's N e w O rle a n s B ranch b o a rd .


C on ven tio n Sp e ak e rs


J. B. F a lg o u s t, e .v .p . & cash., B a n k o f
V a c h e rie , is th e LBA tre a s . H e jo in ed his b a n k
in 1 9 5 1 , a tta in in g th e CEO 's post in 1 9 7 1 .
M r. F a lg o u s t is a f o r m e r LBA d ir.

Federal Reserve Bank of St. Louis





Spirit of 76' Is Theme
During LBA Convention
NEW ORLEANS—The “Spirit of
76“ will prevail during the annual con­
vention of the Louisiana Bankers As­
sociation May 1-3 at the Fairmont
Hotel. Its first official function will be a
two-hour informal reception having a
7 6 theme, at Gallier Hall at 5 p.m. A
novelty band will be on hand for enter­
While the LBA convention is slated
to open officially at noon May 1, reg­
istration will begin in the Fairmont’s
Grand Ballroom at 9 a.m. and continue
until 5 that afternoon. Registration will
continue on Sunday, May 2, in the same
time period and in the same place. Ex­
hibits also will be open for inspection
from 9 to 5 Saturday and Sunday in
the Grand Ballroom.
At noon Sunday, the women’s con­
vention committee meeting will com­
mence in the Orleans Room. The past
presidents’ luncheon is slated to begin
45 minutes later in the Gold Room. All
LBA officers, members of the LBA
board and LBA past presidents are in­
vited to attend. The Rex Room will be
the site of the first-ladies’ luncheon at
12:45. It is for wives of the aforemen­
Monday’s events will be kicked oil
by the opening of registration at 8 a.m.
in the Grand Ballroom. At the same
time, the breakfast for graduates and
students of the School of Banking of
the South will begin in the University
At 9 a.m., the Imperial Ballroom will
be the site of the women’s bingo party,

followed at noon by a social and
luncheon. Bingo prizes will be donated
through the courtesy of LBA member
banks. In addition, the exhibits also
will open at 9 a.m.
At 9:30 a.m., May 3, the conven­
tion’s only business session will com­
mence in the International Ballroom. It
will feature presentations by LBA
president J. D. Acklin Jr., chairman and
president, Planters Bank, Haynesville,
and by W. Liddon McPeters, American
Bankers Association president-elect,
and president, Security Bank, Corinth,
Miss. Also on the agenda for the busi­
ness session is the reading of commit­
tee reports and resolutions.
Following the business session will
be a 12:30 men’s social and luncheon
in the International Ballroom, during
which nomination and election of new
officers will be held and awards will be
presented to outgoing board members.
At 6:15 the evening of May 3, a
social will begin in the International
Ballroom, followed at 7:30 by the an­
nual banquet and dance in the Im­
perial Ballroom. During the dinner, 50Year honorees will be recognized, new
officers and board members will be in­
augurated and the outgoing president
and his wife will be honored. Dancing
is scheduled until midnight to the bigband sound of Pat Barberot and his or­
Serving as general convention chair­
man for this year’s LBA convention is
James Alario, executive vice president
and cashier, State Bank, Golden Mead­
ow. Claire Acklin of Haynesville chairs
the Ladies Committee, while Pat W il­
lis, vice president, Fidelity National,
Baton Rouge, serves as chairman of the
Rules and Calendar Committee.

For "Person to Person Service" call

■ PH ILIP E. DOOLEN has been
named vice president, Whitney Na­
tional, New Orleans, while Gerald J.
Catoire has been elected auditor. Rob­
ert J. Friedrich Jr. and Edison J.
Schayot Jr. have been elevated to as­
sistant cashiers, and John C. Carriere
has been promoted to assistant trust
officer. Mr. Doolen has been with the
bank since 1954; Mr. Catoire, since
1963; Messrs. Friedrich and Carriere,
since 1972; and Mr. Schayot, since



■ GLEN E. BASCOM has been ap­
pointed vice president and manager of
the newly created government securities
department at Howard, Weil, Labouis­
se, Friedrichs, Inc., New Orleans. For
the last two years, Mr. Bascom has
been vice president and manager, in­
vestment division, Hibernia National,
New Orleans. Prior to that, he was
vice president, investments, Flagship
Bank, Tampa, Fla.
■ M ICHAEL J. RAPIER has been
elected president and chief adminis­
trative officer, National Bank of Com­
merce, Jefferson Parish. He formerly
was executive vice president and has
been in banking over 15 years.

Howard, Weil
Nasdaq symbol: HWLF

in Louisiana and
Municipal Bonds

TEL. 2 1 2 -4 -2 2 -3 3 0 0


M e m b e rs :
N e w Y o rk S to c k E x c h a n g e . In c .. A m e r ic a n S to c k E x c h a n g e
C h ic a g o

B o a r d o f T ra d e . C h ic a g o M e r c a n tile
C h ic a g o B o a r d O p tio n s E x c h a n g e

E xchange


2 1

Howard, Weil, Labouisse, Friedrichs li


çzr*nvedtm ent

P I,
F tB


<~>ecut itieS

211 C a r o n d e le t S t. • T e l. 5 0 4 - 5 8 8 - 2 7 1 1
N e w O rle a n s , La.

Federal Reserve Bank of St. Louis




Hattier, Sanford
& Reynoir


Whitney Building, New Orleans, La. 70130
(504) 525-4171

. 1

Bossier Bank Plays Key Role in Construction of Area Wire-and-Cable Plant


HANKS TO Bossier Bank, Bossier
City, La., which assisted in place­
ment of $4.3 million in bonds, the
Louisiana Wire & Cable Co. is building
a new plant in the area.
The plant, which will employ about
125 workers initially, will have an an­
nual payroll of $1.25 million and is ex­
pected to be completed sometime in
late summer. The plant will have
72,000 square feet of space and will
be located in the Bossier City-owned
industrial park.
Louisiana Wire & Cable is a sub­
sidiary of AG-MET, Hazleton, Pa. The
plant will manufacture copper-clad
aluminum wire and will recycle copper,
aluminum and plastics in the process.
On at least two occasions, negotia­
tions with AG-M ET nearly fell through.
However, final placement of the bonds
resulted from persistent efforts by the

(Continued from p ag e 30)
fore Congress and the Comptroller.
W e’ve talked to the Fed and the FH LB,
explaining banker positions. W e’ve also
communicated banking’s views to the
Justice Department. The important
point is that with bankers’ help, we’re
communicating with government. But
their help is essential. A letter from a
constituent to a congressman or a letter
to a regulatory agency has a great im­
pact. The staff in Washington can’t do
the job alone.
What else has the ABA been doing?
We contracted with Arthur D. Little
Co. for a multi-state pilot E F T S strat­
egy study. This study was conducted
in cooperation with 12 state bankers as­
We participated actively in seminars
on the social securitv direct-deposit
program and sponsored our own semi­
nars on the same subject. The ABA is­
sued several publications on the sub­
ject, including a mini-folder suitable for
use as a statement stuffer or as a hand­
out on a bank counter.
Moreover, the association has con­
ducted two Payment System Policy
conferences in the last 14 months, and
we’ve supplied staff support for the
National Automated Clearing House
Association (NACHA).
NACHA’s board has approved file
specifications for the interregional ex­
change of ACH entries. This is a sig­

Preparing to break ground for new Louisiana
W ire & Cable Co. plan t in Bossier City, La.,
are (from I.) U. S. Rep. Joe D. W aggonner Jr.
(D.,La.); G erald Cohn, ch., AG-MET, H azleton,
Pa., parent com pany of Louisiana W ire &
Cable; State Gov. Edwin Edwards; Roy Gold,
pres., Louisiana W ire & Cable; Jean A. Q u artemont, pres., Bossier Bank; and James Cathey,
Bossier City m ayor. Construction of plan t was
m ade possible through bank's successful e f­
forts a t placing $4.3 m illion in bonds. Plant
initially w ill em ploy 125, w ill provide $1.25
million annual payroll.

nificant step toward development of a
national ACH network.
The ABA has established a highlevel Standards Policy Board that will
monitor the progress of ABA positions
through the American National Stan­
dards Institution (ANSI) and the Inter­
national Standards Organization ( IS O ).
I guess the best way to describe the
ABA’s efforts is to say that we’re acting
as a clearing house for information
about E F T and we’re identifying areas
of concern for bankers. We want to
focus attention on the future, so that
the banking industry will be ready to
meet the challenges of tomorrow.
Electronic transfers are here to stay.
But each of us will have to determine
which E F T services make sense for our
banks. W e’ll also have to be aware of
the advances being made by our com­
petitors, and we’ll have to recognize
that our competitors aren’t just other
banks. Our competition can come from
many directions, including from thrifts
and the retail sector.
I ’m reminded of the F. Scott Fitz­

MID-CONTINENT BA N KER for April, 1 9 7 6
Federal Reserve Bank of St. Louis


bank’s bond department, headed by
Dale Anderson, President Jean A.
Quartemont and officials of Bossier City
and of AG-MET.
The talks were touched off when the
bank’s bond department was contacted
by Drexel-Burnham & Co., New York
City, the firm underwriting the issue.
That company had indicated that an
industry was seeking a plant site in
north Louisiana.
After a number of talks between
bank and AG-MET officials, it was felt
the plant would provide a valuable and
much-needed economic boost to the
area. Finally, Bossier Bank was able to
place the bond issue with local and
regional financial institutions. * *

gerald story about New Yorkers and
the just-completed Empire State Build­
ing. From the top of the skyscraper,
New Yorkers gained a new perspective
on the land— and it frightened them.
They realized, for the first time, that
there was a whole other world beyond
their city. They began to get concerned
and upset.
Now, we bankers must rise above the
everyday E F T events to see the overall
trends. Then, rather than become de­
fensive and isolationistic, we must plan
for the world of tomorrow.
We cannot deny the future. We can­
not deny the world of electronic trans­
fers. But we can help to shape it so
that it serves the needs of individual
consumers, the public in general, our
communities and the nation. Moreover,
this wise planning is in the interest of
our banks.
We have a challenge, and we will
respond to it. W e will grow with the
times and we will thrive, for we are
America’s bankers. * *



S p e c ia l A tte n tio n
to C o lle c tio n
a n d C a s h Ite m s !




Vice President & Cashier
Member F.D.I.C.

Manufacturing in Louisiana
Tops $1.5-Billion Mark
G eneral Motors Corp.'s Guide Division was
one of labor-intensive industries th a t located
in Louisiana last y ear. Purpose of Guide D ivi­
sion is to " w rin g " w e ig h t out of GM cars to
im prove fuel economy. Laboratory technician
holds reinforced plastic housing used to sup­
port rectangular headlam ps in some GM cars.
Guide plastic housing weighs 6 0 % less than
conventional m etal housing pictured a t right.

To Make 1975 Banner Year
Executive Director
Louisiana Department
Of Commerce
& Industry
Baton Rouge

m Louisiana
during 1975 topped the $1.5
billion-mark, the best year the state has
ever had in overall industrial develop­
Increased industrial growth in the
state was reflected in the location of
54 new manufacturing plants and 319
expansions to existing facilities. These
plants and expansions contributed $651
million and $849 million, respectively,
to 1975’s industrial investment.
Also during 1975, there were some
8,100 permanent jobs and 21,357 con­
struction jobs generated by industrial
investment in the state.
Investment by industrial category
showed petrochemicals and refining
with $1,111,443,002; food products,
$20,469,552; pulp and paper, $162,191,502; lumber and wood products,
$19,050,978; metals and machinery,
$54,626,059; stone, clay and glass,
$8,807,680; power generation, $58,341,000, and miscellaneous products,
During 1976 it is anticipated that
Louisiana’s economy will continue its
upward growth at an even more dra­
matic pace than in 1975. The Louisiana
Department of Commerce & Industry
has already been informed of planned
industrial projects for 1976 that will
approach $2 billion of investment in
the next 12 to 18 months.
In addition, massive construction
projects involving nuclear generating
stations and the Louisiana Offshore Oil


a n u f a c t u r in g

M icrow ave ovens are popular items these days,
and many of them are m anufactured in
Shreveport, w here Frymaster Corp. has plant.
Location o f this factory in Louisiana is just one
reason for state's topping $ 1 .5-billion m ark in
m anufacturing in 1975 and m aking it best year
it ever had in overall industrial developm ent.

Federal Reserve Bank of St. Louis

Port are only awaiting final federal
approval to begin. Together, these proj­
ects involve additional investments of
$1.5 to $2 billion. And they will pro­
vide the foundation for considerable
industrial growth in industries that rely
on oil and electrical energy.
The Department of Commerce & In­
dustry is in the process of implementing
a new four-point program for econom­
ic development in Louisiana. As con­
ceived, the program will offer the
greatest number of economic oppor­
tunities for Louisiana’s residents with
maximum utilization of the state’s nat­
ural resources.
The program’s four points are: at­
traction of labor-intensive manufactur­
ing industry; achievement of geograph­
ic dispersion of manufacturing facilities
to allow every Louisiana resident to
share in industrial development in pro­
portion to his or her ability; attraction
of industiy that will use and process
Louisiana’s raw materials and natural
resources and development of the ser­
vice and support industries required by
manufacturers located in Louisiana.
Louisiana is trying to enlarge the
scope of labor-intensive industry and
achieve geographic dispersion of manu­
facturing facilities to give more of the
state’s smaller communities a share of
Louisiana’s industries. Investment in
north and central Louisiana has gone
principally into labor-intensive indus­
tries; whereas south Louisiana, because
of the area’s wealth of oil and natural

MID-CONTINENT BA N KER for April. 1 9 7 6

gas, has gone into capital-intensive
In 1975, Louisiana saw an upswing
in labor-intensive industries locating
within the state. Representative of in­
vestment in this category were Calumet
Shipbuilding, Martin Mills, Libbey
Glass and General Motors’ Guide Divi­
sion. Together, these four plants gen­
erated 2,089 permanent jobs with a
combined investment of $40,550,345.
On the capital-intensive side were
ECO L, Ltd., with an investment of
$241,230,000 and C F Industries, with
an investment of $198,340,000. Both
companies fell into the traditionally
more capital-intensive petrochemical/
chemical category, which earmarks be­
tween $250,000 and $500,000 of in­
vestment per worker.
One of the most encouraging signs
for Louisiana is the fact that nationwide
excess industrial capacity is being re­
duced rapidly. This means that com­
panies shortly will have to begin build­
ing new plants to meet consumer de­
mands. W e believe we are in an excel­
lent position to capture a share of this
growth, much of which will be laborintensive in nature.
We have the available labor and
other attractive incentives to offer in­
dustry in our tax exmption, training

and bond programs, and we plan to
promote these programs vigorously.
Surveying this background of favor­
able signals, we are very optimistic
about 1976. W e think we are in for a
good year. * *
■ AMERICAN BANK, Baton Rouge,
has named A. Bridger Eglin and Mart
Melton Jr. senior vice presidents.
Named vice presidents were Melvin J.
Marque Jr., Richard E. Orgeron, David
Ourso and Dale Dupuy. C. A. Altazan,
Lloyd Giblin, Tommy Clark, Charles
Earnest, Mae Johnson, Tommy Legleu,
Len Marcotte, Johnny Milazzo and
Russell Marino have been advanced to
assistant vice presidents, while Beverly
Waldrop has been named manager,
LSU Branch. At the bank’s parent HC,
Great American Corp., Baton Rouge,
Dennis Lane has been elected vice
president and comptroller, while James
H. Swann has been advanced to as­
sistant vice president and director of
■ HENRY G. McCALL II has been
appointed vice president, First National
Bank of Commerce, New Orleans. Sev­
eral other promotions have been an­
nounced at the bank: Holbert D. Blair,
to branch manager; Lonnie Baham,



■ CENTRAL BANK, Monroe, has
elected James A. Altick president to
succeed J. Grayson Guthrie, who now
is vice chairman. Mr. Guthrie remains
actively involved in a management
capacity. Mr. Altick is a director of the
bank and had been executive vice
president since 1974. Mr. Guthrie is a
past president, Louisiana Bankers As­
sociation and Northeast Louisiana
Clearing House Association. George M.
Snellings Jr. is chairman of Central
Lionel F. Baxter Jr., Richard J.
Chauvin, John A. Fields, Pierce W.
Hance and Edwin F. Martin, to assist­
ant vice presidents; and Melissa W.
Averett and L. J. Provenzano, to bank­
ing officers.

City National Bank can
supply you with practical­
ly anything you’ll need to
know about Baton Rouge,
from road maps to a com­
plete financial picture of
the entire Trade Area.
Once you’ve got the
City on your side you can
take advantage of a lot
of hard thinking from
our people, and a lot of
hard work from our data
processing center. We
think both are the best
in the business.
So before you call on
Baton Rouge, call on the
City first.
We know our way
around town.

C ity
With you for all we’re worth.

P.O. Drawer 1231
Phone (504) 387-2151
TWX 510-993-3517
Baton Rouge, La. 70821

Member FDIC
MID-CONTINENT BA N K ER fo r April, 1 9 7 6
Federal Reserve Bank of St. Louis


For three years running the
number one agricultural
lending bank in Texas.
When you want to know
about the Panhandle,
ask the leader. We can help.

G ene Edw ards
Chairm an o f the
Board and President

P eter A Dallas
S enior
V ice President

Ted D avis
Vice President

D on F. D u ffie ld
V ice President

Bob J. M c M u r r y
Vice President
A dm inistratio n

Jam e s K. Cox
V ice President
& C ontroller

K e nne th N. Sloan
V ice President
& Trust O fficer

Bill S e w e ll
S enior
R ob e rt E. Rook
Vice President
S enior
V ice President
Correspondent Banking

J a c k E. L ittle
V ice President
Et Tru st O fficer

'You're First with Us!”


n a tio n a l B a n k
o T R m a r illo
P. 0. Box 1331, Amarillo, Texas 79180 (806) 376-5181

Federal Reserve Bank of St. Louis

MID-CONTINENT BANKER for April, 1 9 7 6

At the District Seven Meeting—

Dangers of Big Government
bySecretary Simon
By LAWRENCE W, COLBERT, Assistant to the Publisher


HE SE R IE S of eight district meet­
ings of the Texas Bankers Associa­
tion got underway February 15-16
with the traditional big crowd of al­
most 1,800 in Fort Worth for the Dis­
trict Seven meeting.
J. B. Wheeler, TBA president and
president, Hale County State, Plainview, spoke at the District Seven meet­
ing outlining the “Texas position” with
regard to the Financial Institutions Act.
Earlier this year TBA officials had ar­
ranged a meeting of the 50 state banker
association managers in Chicago to poll
feelings regarding the ABA position on
the Financial Institutions Act.
TBA officials felt that the ABA had
not taken a strong enough position op­
posing the legislation. A majority of
the state association officials present at
the meeting agreed with what has come
to be known as the stronger “Texas po­
sition” and those feelings were con­
veyed to the ABA governing council.
Mr. Wheeler stated it was important to
“throw a solid front.”
Sam O. Kimberlin Jr., TBA executive
vice president, reported on the new as­
sociation headquarters building progress
and the Fine Study.
The principal address was delivered
by William E. Simon, Secretary of the
Treasury. Mr. Simon said, in part:
“There comes a point where healthy
questioning ends and a kind of poison­
ous cynicism begins; when people be­
gin to think that the cause of all their
problems is someone else’s fault—pref­
erably someone high in government,
business or finance.
“In a negative kind of way, it is very
comforting to be able to blame infla­
tion, recession, productivity problems
and the high cost of government on
Wall Street wolves and local robber
barons. It’s a cop-out, of course—but a
particularly tempting cop-ont for pol­
iticians who have spent the country
into unbelievable debt and unaccept­
able inflation.
“So, from a purely public relations
point of view, it is not a very good time
to be a banker—as you can appreciate
far better than I.
“And the sad thing about this lies in
one of the biggest economic ironies of
our time. In recent weeks we have seen
a wave of sensational news stories, in

print and on the air, questioning the
soundness of the American banking
system. The impression that one got
from these stories was that the whole
structure is tottering on the brink of
collapse, with some of the biggest
names in banking ripe for the endan­
gered species list.
“Now you and I know that this is
not the real picture. It is our job to
know the facts, and the facts are that
the American banking community has
emerged from the recession in remark­
ably good shape. The surprise is not
that a few banks— an infinitesimal frac­
tion of the banking community—have
experienced some difficulties. The real
surprise, and it’s a pleasant surprise
for a change, is that American banks
have weathered the storm of the worst
recession in a generation, have covered
problem loans out of operating funds
and have still showed a substantial in­
crease in earnings.
“I submit to you that this is a record
to be proud of. But I also submit to you
that this is an untold success story— a
success story that most Americans have
never heard and therefore do not ap­
“Which brings me to us—you as
bankers and me as Secretary of the
Treasury. Perhaps a large part of the
blame for the public’s misconceptions
about the economic situation lies with
“If ice can’t get the story across for
ourselves, how can we expect anyone
else to do it for us?
“The banking community, like the
rest of the business community, has
performed its internal functions ad­
mirably. But the whole private sector—
the source of the enormous abundance,
opportunity and freedom that makes
our country so unique in the world—
has failed at one crucial test. It is not
making itself understood to the media,
the politicians and, most importantly,
to the people.
“The free enterprise system has done
a magnificant job for everyone but it­
self. And as a result, it faces an ever­
growing menace in the form of dimin­
ishing public confidence and increasing
domination by the federal government.
“Consider the energy field. In spite
of the impact of the oil embargo and

MID-CONTINENT BA N K ER for April, 1976
Federal Reserve Bank of St. Louis

TBA President J. B. W heeler is flanked by Dis­
trict Ch. Bruce B. C am pbell Jr. (I.) and TBA
Vice President S. R. G reenw ood. M r. Cam pbell
is ch., Citizens State, Knox City, and Mr.
Greenwood is president, Temple N a t'l.

the general increase in the cost of im­
ported fuel, Americans still pay less to
heat their homes, run their automobiles
and keep the giant wheels of industry
turning than any other major industrial
“The purpose of government energy
policy should be to keep those costs as
low as possible by encouraging, not dis­
couraging, domestic energy production
without creating a massive, permanent
federal energy bureaucracy.
“Unfortunately, that is not what is
happening. I know. I was there at the
creation of the Federal Energy Adminis­
tration. And if ever there was a clear
illustration of the federal foot in the
door, it is the evolution of the FEA.
Originally, the FEA was intended to be a
temporary, emergency measure. Neither
I nor anyone else wanted to become a
federal energy czar. But that is exactly
what happened, not because I or my
successors wanted it that way, but be­
cause bureaucrats and bureaucracies
have a way of taking on a life of their
own. Dike too many politicians, their
first instinct is for personal survival,
whether that survival is in the public
interest or not.
“So, today, we have not only an
energy czar, but a federal energy em-


For taster
service on

Harold E. Ball • Carl W. Buttenschon
Leon Robinson • Milton G. Scarbrough


(§ )


2808 Fairmount — Dallas, Texas 75201
Amember companyof
Republic Financial Services. Inc

Established 1964




Federal Reserve Bank of St. Louis


pire to go with him, and a constant
clamor on the political front for more
and more federal regulation and con­
trol of petroleum and related energy
“Given the poor public image of the
oil industry, these demands are increas­
ingly taking the form of cries for di­
vestiture, a move that could potentially
cripple rather than enhance America’s
energy potential.
“Attacking the oil corporations makes
big headlines and short-term political
hay, but those who advocate divestiture
have a responsibility to show us how—
if at all— their proposals would help us
solve our energy problems. And so far,
underneath all of the anti-business
rhetoric, there has been precious little
substance. Advocates of divestiture
have found an entire industry guilty
without benefit of trial, and they want
the public to blindly agree to their
kangaroo verdict.
“I say they are wrong. To blindly
argue for the dismantling of an entire
industry without considering the conse­
quences makes about as much sense as
arguing that you can get better mileage
out of a car by chopping it up into tiny
pieces. In fact, you may get no mileage
at all. You may destroy the delicate, in­
tricate mechanism beyond repair. At
the very least, you will have to spend a
great deal of time, energy and money
in repairing the damage you have done
before you can get it back into work­
ing order.
“I am proud of the responsible role
which the Administration I serve has
played in the field of energy. The orig­
inal legislation proposed by President
Ford was sound and responsible; the
changes that occurred were the inevi­
table result of the legislative process.
Neither I nor the President are happy
about some of those changes but the
political climate in the land—and the
communications failure of the private
sector—made those changes inevitable.
“The Administration’s commitment
has been, and continues to be, toward
less, not more federal intervention. But
we can’t fight this battle alone. It is
going to take a massive swing in pub­
lic opinion, and that, in turn, means a
massive effort to educate the public.
“As Abraham Lincoln once said, T
have faith in the people . . . the danger
is in their being misled. L et them know
the truth and the country is safe.’
“Already, in at least a broad sense,
there are signs of a public awakening
to the evils of big government.
“More and more people are fed up
with a federal government that costs
a billion dollars a day and goes another
billion dollars into debt every week.
“They are sick and tired of a red ink
federal track record that has yielded 16

deficit budgets in the last 17 years; that
has seen the federal budget quadruple
in the past 15 years, and has seen the
national debt doubled in a decade. And
they are fed up with the growing en­
croachments of the federal bureaucracy
into their everyday lives. They resent
the fact that today federal bureaucrats
whom they would not have voted for,
did not hire and cannot fire have the
power to control everything from where
their children go to school to how their
local communities spend their revenues.
Yet unless this general public dissatis­
faction can be channeled, informed and
articulated, the federal juggernaut will
keep on rolling and growing by the
weight of its own momentum.
“The federal government today is
the nation’s biggest single employer,
its biggest consumer and its biggest
borrower. If present trends continue
until the end of this century, government
at all levels could account for almost
60% of our gross national product—60
cents out of every dollar. If that day
ever comes, we will no longer be a free
country in any meaningful sense of the
word. And to stop that day from com­
ing, we must act now.
“Nineteen seventy six is our bicen­
tennial year. Across the country mil­
lions of Americans are celebrating the
200th anniversary of a struggle that
was fought and won for the freedom
of the individual. But, like all great and
worthwhile undertakings, that struggle
still goes on. The men and women of
’76 and the millions of immigrants who
followed them came to these shores to
escap e the kind of government that
over-taxed, over-regulated and, ulti­
mately, stripped the individual of his
political as well as his economic free­
“Today, 200 years later, the ques­
tion remains: Do we preserve the sa­
cred heritage of government of the peo­
ple by the people for the people or do
we trade our heritage of freedom for
the false security of a state-run economy
‘of the bureaucrats, by the bureaucrats,
for the bureaucrats?’
“As a citizen, as a father and as one
who has seen the intimate workings of
government firsthand, I deeply believe
that the central, underlying issue of our
time is this basic confrontation between
the freedoms we cherish as Americans
and their erosion by runaway big gov­
“Our cause is just and our cause is
strong. It is up to us to get it across to
the American people.” • *

MID-CONTINENT BANKER fo r April, 1 9 7 6

Ways and means. That's
what correspondent banking
is all about. When you need
either or both, you need to
know the people at Frost.
Our correspondent
bankers—Leonard Magruder,
Perry Finger, Brad Sledge and
Federal Reserve Bank of St. Louis

Steve Aycock—have proven
ways to help you with fast and
efficient item processing, data
processing, BankAmericard®,
trust services, and more.
Being the largest bank
in South Texas, we have the
means to assist you wTith over­

line participations and other
So, when you need
experienced correspondent
assistance, let us be your ways
and means committee. Call
(512) 220-4114, and ask for
us by name.

Texas Convention

El Paso, M a y 2-4
Headquarters—Ei Paso Convention Center

10-11 a.m.—Committee Meetings.
10 a.m.-6 p.m.— Registration and Exhibits.
6-8 p.m.—Opening Night Reception and Ruffet.
J. B. W heeler, TBA pres., joined Hale County
State, P lainview , in 1946, advancing to
pres, in 1966. He is a past pres., South
Plains Bankers Assn., and w as 1970-71
TBA treas.

Vice President

9:3 0 a.m.— Opening business Session presided over by J. R. W H E E L ­
ER, president, Texas Bankers Association, and president, Hale
County State, Plainview.
10 a.m.—Address: “The Four ‘H’ Club— Could Bankers Qualify?”—
DR. N. C. HIGH TOW ER, gastroenterologist, Scott & White Clinic
and Hospital, Temple.
11 a.m.— National Bank Division Meeting, with legislative report by
11 a.m.— State Bank Division Meeting with legislative report by SAM
O. KIM BERLIN JR., TBA executive vice president.
12:30 p.m.—Reception-Luncheon with guest speaker ART LINKLETTER.
6-8:30 p.m.— Reception and Banquet.
8:3 0 p.m.—Entertainment bv TAMMY W YN ETTE and JOHNNY

S. R. G reenw ood, TBA v.p., is pres.. Temple
N a t'l, and pres., Investors Diversified
Developm ent Corp., Inc. He is im m ediate
past ch., Governor's State Com mittee on
A ging, and chairs the TBA's new -facilities,
budget and state-convention-planning

9:3 0 a.m.— Business Session.
10 a.m.—Address: State Governor DOLPH BRISCOE.
10:30 a.m.—Panel discussions on “Bank-Consumer Relationship” and
“The Anticipation of Customer Needs in the Future.”
11:30 a.m.— Reception and Luncheon.




W . F. Smith Jr., pres.. First N a t'l, Q u anah,
is the TBA treas. He joined his bank in
1959 as a.v .p ., w as nam ed to its board
in 1960 and advanced to pres, in 1965.

J 04
Federal Reserve Bank of St. Louis



MID-CONTINENT BA N KER fo r April, 1 9 7 6

Howdoes the energy capital
move its energy?
Helping it reach its destination is
First City National Bank.
Some thirty underground pipelines carry
Texas Gulf Coast resources to major U .S.
cities thousands of miles away. These
pipelines move millions of gallons of oil,
natural gas, petrochemicals and other
liquid products.
This area of Texas has become one of
the nation’s most important oil and gas
transmission centers — connecting the
products of plants and refineries along the
Houston Ship Channel with inland desti­
nations as far away as New York City.

One-quarter of the nation’s major
pipeline companies moving natural gas are
found in Houston. Together these 14
companies operate more than 12 2 ,0 0 0
miles of natural gas pipeline.
First City National Bank uses its
financial strength to help move Texas
Gulf Coast resources. This involvement
has taught us even more about the energy
field. And what we know is yours for the
We’re becoming involved with more
and more industries every day. And we’re

MID-CONTINENT BA N K ER fo r April, 1 9 7 6
Federal Reserve Bank of St. Louis

proving to correspondents that more ser­
vice is the result of more experience.
Understanding business as well as bank­
ing has made us . . .

A major financial strength behind
Texas industry.





A Variety of Notable Figures
Slated for El Paso Convention
E L PASO—A variety of noted world
and local figures are scheduled to ap­
pear during the Texas Bankers conven­
tion, May 2-4.
A reception for all convention-goers
will be held Sunday evening, May 2,
followed by an evening at the grey­
hound races at Juarez Racetrack.
A “very important Washingtonian,”
as yet unnamed, is tentatively sched­
uled to address the convention. Be­
cause of his heavy demands and shortrange planning, it wasn’t known at
press time if he would be able to ap­
Dr. N. C. Hightower, gastroenterol­
ogist from Temple’s Scott & White
Clinic & Hospital, will address the
Monday, May 3, business session. His
topic will be “The Four ‘H’ Club—
Could Bankers Qualify?”
The luncheon speaker that day will
be Art Linkletter, who is international­
ly known for his timely and humorous

talks, while country-western music stars
Tammy Wynette and Johnny Rodriguez
will provide the entertainment for that
evening’s dinner-dance.
Texas Governor Dolph Briscoe will
be the featured speaker during Tues­
day morning’s business session.
The program chairman for this year’s
TBA convention is S. R. Greenwood,
president, Temple National, and TBA
vice president.

E L PASO—A special women’s pro­
gram has been planned for this year’s
Texas Bankers Association convention.
On Monday, May 3, from 9 a.m. to
12 noon, a hospitality room will be
open, with a continental breakfast
served. That will be followed by a
choice of tours: Old El Paso, shopping
or a decorator showcase home.
The following morning will begin
with a 9:3 0 brunch featuring a style
show, mariachi band and Ballet Folkló­
rico. A tour to the Camino Real, Juarez,
and shopping at the Juarez Pronof
Center will be conducted by chartered
B JO E V. V ILLA RREA L has been
elected assistant vice president, Frost
National, San Antonio. He joined the
bank in 1972 and manages the cost and
planning department,

B ryan W illiam sfim ake
things happen



IflU B B O C K M
2 ¡ a t io n a l |*||
B ank w w i


Federal Reserve Bank of St. Louis

AUSTIN— Construction on the new
headquarters building of the Texas
Bankers Association has begun, with
completion expected in late 1976.
Cost of the two-story, Texas colonial
style building has been set at $600,000.

Special Women's Program
Set for TBA Convention


(806) 762-8800

Texas Bankers Association
Building New Headquarters

The site for the structure was pur­
chased for $399,000 and is immediately
south of the governor’s mansion.
The building also will have under­
ground basement parking and storage.
This reportedly will be the first time
in the TBA’s history that the association
will occupy its own building.
has organized three new departments
under Senior Vice President Granville
M. Green. They are: national accounts,
headed by Assistant Vice President
Lester L. Parker Jr.; correspondent
banking, directed by Assistant Cashier
Robert I. I. Bondi; and metropolitan
banking, supervised by Assistant Cash­
ier Steve DeGroat. Mr. Green joined
the bank in 1961; Mr. Parker went
there in 1970 and Messrs. DeGroat and
Bondi in 1973. Mr. Bondi recently took
an intensive training course with the
regional correspondent banking divi­
sion of First City National, Houston.
B R O BERT W. SEAL has been ad­
vanced from executive vice president
to president of National Bank of Com­
merce, San Antonio. He succeeds Rich­
ard W. Calvert, who has been elected
chairman and CEO. The former chair­
man, John M. Bennett Jr., has been
named executive committee chairman,
and James C. Wishart has been ap­
pointed board secretary.
fl DONALD W. GAILEY has been
elected assistant vice president, com­
mercial loan department, First Na­
tional, Amarillo. He will concentrate on
agribusiness lending. Prior to joining
First National, Mr. Gailey was with
Texas Commerce Bank, Lubbock, and
First National, Dallas.

MID-CONTINENT BA N K ER fo r April, 1 9 7 6

Serving Correspondent Bankers
in the Great Southwest
-, rnmesT. Denton, Jr.
G ran t


^ '»





£ ”^ . 0

Federal Reserve Bank of St. Louis

Oscar C. Lindemann
C a rm an of the


From bonds to
transit to trust. From
Arkansas to the Texas
Valley. These are the men you need to know.
If you have a question, they’ll have the answer.
Texas Bank Professionals.


MID-CONTINENT BA N K ER fo r April, 1 9 7 6


Texas Bank and Trust Company of Dallas.
One Main Place, Dallas, Texas 75250.
Member FDIC.

B A N K ■

A First City

LEFT: El Paso skyline is backgrounded by Sierra M adre M ountains, located across Rio G rande River in
Mexico. RIGHT: Panoram ic view o f Grand H all in El Paso Civic Center, site o f TBA convention M a y 2-4.

TBA Convention Returns to El Paso

L PASO and its citizens are pre­
paring to provide an encore to
Texas bankers as they await the return
of the Texas Bankers Association an­
nual convention May 2-4. The TBA
met in El Paso’s Civic Center just three
years ago, ending a 46-year hiatus.
Although E l Paso is officially 102
years old this year, it traces its begin­
nings back to 1536, when Spanish ex­
plorers came through the area, which
boasts the lowest elevation all-weather
pass through the Rocky Mountains.
E l Paso was a small trading center
through the Mexican revolt against
Spain. Its residents were on the side of
independence for Texas during the time
statehood was being considered. In
1848, the U. S. Army established the
Post of E l Paso and the area has grown
ever since.

C O V E R PH OTO : E l Paso’s skyline is
dominated this year by huge American
flag on sides of State National Bank
Building in honor of U. S. bicentennial.

Greatest population growth has oc­
curred in El Paso’s sister city, Juarez,
located just across the Rio Grande
River in Mexico. Juarez now includes
some half-million people, while El Paso
records 350,000.
“Bienvenidos” has always been the
welcoming salutation in El Paso, and
the city is known for its southwestern
hospitality, flavored by its proximity to
E l Paso is surrounded by the Frank­
lin Mountains, the southernmost portion
of the Rockies. While the city’s eleva­
tion is 3,700 feet, peaks up to 7,000

Colorful Juarez Beckons Bankers
Bankers attending the TBA convention in El Paso will find color and excitement
across the Rio Grande in Juarez, Mexico, with its city market and street markets
stacked high with produce, crafts, pottery, weaving and clothing.
Shops offer leather goods, silver, souvenirs or imported items, such as perfumes.
Mexican food is sold by street vendors or it can be obtained in fashionable
Glass-blowers and woodcarvers demonstrate their trades to the public, and
Mexican cabarets feature entertainment at night. Bullfights are held almost every
Sunday afternoon in the spring and summer, and dog races are held at Juarez
Race Track.
Juarez, which is the largest Mexican border city, offers numerous guided tours
through various travel agencies and bus lines in El Paso.
To get from El Paso to Juarez is simple, just cross one of the two bridges by
foot, car or streetcar. No visa or passport is needed.
Federal Reserve Bank of St. Louis


feet are inside the city limits and one
of the more popular tourist attractions
is a tramway ride to Ranger Peak,
from which portions of two states and
two nations can be seen.
El Paso’s natural resources include
60,000 acres of irrigated farmland. Nat­
ural gas and crude oil from the sur­
rounding area are processed in El Paso;
2.5 million pounds of cement are pro­
duced daily; and 108 deep wells and
the Rio Grande River supply city
The area includes the largest pine
forests in the nation and mining opera­
tions are conducted to the west and
south of the city.
The area has produced a third of all
the silver mined in the world in the
last 400 years and the largest U. S.
deposit of potash is mined about 140
miles east of the city. Granite, rock
and marble quarries, and extensive
sand and gravel mining operations are
conducted in E l Paso County. To the
north are the greatest coal deposits
west of the Mississippi River.
E l Paso’s trade area includes West
Texas, Southeastern Arizona, New Mex­
ico and the state of Chihuahua in
Mexico. Area population is about five
million. Fort Bliss is the major military
base in the area. It serves as the air
defense training center for the free
Tourist attractions include Tigua In­
dian Craft Shop and Museum; Fort
Bliss Replica Museum, the Hueco
Tanks Park and Butterfield Stage stop;
Cavalry Museum; and Trans-Mountain
Highway Drive, which crosses mile-

MID-CONTINENT BA N K ER fo r April, 1 9 7 6

for correspondent banking
we're your people...
We're professionals, and we like to think we're resourceful.
We're good listeners, because we know that's the only way to arrive at a full
understanding of your correspondent banking needs. And we're devoted
to the development of original programs, unique services and efficient
problem-solving methods to benefit our correspondents and their customers.


Whatever your Southwestern correspondent
needs may be, let us help you soon.
We care about you and your bank.
From left: Bob B ondi, Bill G reen,
Les Parker, C ecilia Lang, Steve D eG roat.

915/544-1700 • Member FDIC

MID-CONTINENT BA N K ER fo r April, 1 9 7 6
Federal Reserve Bank of St. Louis



high Smugglers Gap via a 190-foot cut
through solid granite.
Most historic of the old missions are
the Ciudad Juarez Guadalupe Mission,
founded in 1659; Ysleta Mission,
founded in 1681; and the more recent
Socorro and San Elizario missions, es­
tablished in the early 1770s.
Cultural activities include the El
Paso Symphony, art museum and the
Chamizal National Memorial, a new
center for cultural productions, activi­
ties and exhibits. The Memorial was
opened since the last TBA convention
met in El Paso.
The convention will be held in the
city’s $20 million Civic and Convention
Center, which opened its doors in late
1972. The center includes a $7 million
theater-auditorium, 95,000 square foot
assembly-exhibition hall and a Chamber
of Commerce building. Two levels of
parking under the plaza and exhibition
building provide space for more than
1,200 cars. Up to 7,000 delegates can
be accommodated in the center.
More than 80 hotels and motels serve
El Paso visitors, with a capacity of


El Paso plans to go all out to wel­
come the return of TBA next month.
■ FRO ST BANK, San Antonio, hosted
2,375 people at a matinee performance
of the San Antonio Stock Show and
Rodeo. The event is a 24-year tradition
at the bank, and guests included Frost
Bank staff members and families and
bankers from throughout Texas and
Mexico. After the performance, a recep­
tion and dinner were held in the Frost
Bank Tower Plaza Club for 550 visiting

■ F IR S T NATIONAL, Amarillo, has
redrawn plans for its new banking com­
plex to include nearly twice the area
for parking as proposed originally. The
bank will have a four-level parking
garage that will accommodate 327 cars.
The garage also will include a full base­
ment for storage and will have a cen­
trally located, skylight-covered 24-hour
teller. A tunnel will lead from there to
the main building. The garage’s exterior
will match that of the bank, with earthtone brick. Completion is slated for
early 1977.

Federal Reserve Bank of St. Louis

folio. Prior to joining Texas Commerce
Bank, he served with a bank in Cali­
been named assistant vice president
and trust officer at Fort Worth Nation­
al. He joined the bank last January and
formerly was vice president and trust
tax department manager with National
Bank, South Bend, Ind.


joined First City National, Houston, as
vice president. He most recently was
with Exxon Co., U. S. A., public affairs
department. In addition, First City Na­
tional has named Richard G. Rundell
trust investment officer. He joined the
bank last year.



■ JO E JU ST IC E has joined the cor­
respondent banking and southwestern
accounts department of Texas Bank,
Dallas, as vice president. He has 10
years’ banking experience and formerly
was with First City National, E l Paso.
In his new position, Mr. Justice will
serve west and southwest Texas, New
Mexico and Oklahoma.
■ F IR S T NATIONAL, Dallas, antici­
pating a resumption of real estate de­
velopment in its area, has restructured
its real estate division. Myron W.
Manker, senior vice president, has been
named as its head, to handle the de­
partment’s daily activities. A. G. W al­
lace, senior vice president, will direct
expansion of financial services to the
industry. Succeeding Mr. Manker as
correspondent head is Charles Dunlap,
vice president. Mr. Manker is an engi­
neer who worked on the Apollo-Saturn
space project for two years prior to
joining the bank in 1970. He served in
the credit department and the national
division before entering the correspon­
dent division in 1974. Mr. Dunlap joined
the bank in 1969, advancing to vice
president in 1974. Since joining the
correspondent department in 1973, he
has supervised most of its activities in
the Southwest and in major eastern
ecutive vice president and senior loan
officer, has been elected president,
Texas Commerce Bank, Plouston. He
succeeds John T. Cater, who resigned
for personal reasons. In his former posi­
tion, Mr. Heiligbrodt was instrumental
in establishing bank lending policies
and was responsible for its loan port­

■ DAVID L. PARKS has been ad­
vanced from assistant vice president to
vice president at Parker Square Bank,
Wichita Falls. He joined the bank last
year, after serving Associates Capital
Corp. 15 years.

Fair Park N a t'I of Dallas
Is C ite d fo r Radio S pot
The Dallas American Revolution B i­
centennial Corp. has presented its Spirit
of ’76 Award to Fair Park National,
Dallas, in recognition of the bank’s
bicentennial radio program, “I Am
Thankful to Be an American.”
Purpose of the award is to recognize
those making outstanding contributions
through bicentennial activities of 1975.
The twice-daily program, which has
been on the air since last June, has
continuously reflected the day-by-day
activities of colonial life. Each segment
is written and produced by the staff of
the radio station broadcasting the pro­
gram and the concept for “I Am Thank­
ful to Be an American” was created by
the bank’s advertising director, Sue

Richard Cobb, pres., Fair Park N a t'l, Dallas,
holds Spirit of '76 A w a rd bank received from
Dallas Am erican Revolution Bicentennial Corp.
A w a rd was to honor bank's radio spots, " I Am
Thankful to Be an A m erican," which continu­
ously reflect d a y -b y -d a y activities of colonial

MID-CONTINENT BA N K ER fo r April, 1 9 7 6

W e’ll double that T exassize invite. W e’ll show you
two flags in red, white, and
blue lights. Each nearly the
size of a football field. One
facing the rest of our Nation,
the other reminding M exico
w e’re here.

W e’re helping our
international community
celeb rate Am erica. With
unity. With confidence. With
respect. What b etter way
than to fly the colors of
our flag?
They’re on our building,

the S ta te National Plaza
Tow er, El P a so ’s tallest.
Each 156-by-242-foot flag
rises from our eighth to our
tw entieth floor. T h ese flags
are lighting up W est T exas
every night during 1976.

loin us. Let’s All Help Celebrate America.

A PanNational Group Bank
MID-CONTINENT BA N K ER fo r A pril, 1 9 7 6
Federal Reserve Bank of St. Louis

Our unique collection system gives
all banks immediate, one-day credit.
If you have a customer who ships grain through
Hutchinson, we have a collection system that can save you
time and money.
With an account relationship at the First, you can
eliminate float and stop losing the ability to invest funds.
A draft mailed right to us will be paid the day of
receipt. You won’t have to wait three days, four days
or a week. Your funds will be available to invest,
usually the day after you’ve mailed your draft. Think,
for a minute, how that will increase your bottom line
at the end of a year!
To discuss how your bank can benefit
from this unique, one-day collection system, call
Gary Karrer at our New Correspondent Center.
(316) 663-1521

I !2
Federal Reserve Bank of St. Louis

MID-CONTINENT BA N K ER fo r April, 1 9 7 6

Kansas Convention
Wichita, May 5-7
Headquarters—Century II

FIRST SESSION, 2:15 p.m., May 6
Welcome—JO E STOUT, convention chairman, and vice president-corre­
spondent officer, Fourth National, Wichita.
Invocation—TH E R EV EREN D FRANK KIK, pastor, Eastminster United
Presbyterian Church, Wichita.
Commentary of the President—J. R. AYRES, KRA president, and presi­
dent, Citizens State, Miltonvale.
50-Year Club Inductions—FLOYD V. PINNICK, KRA president-elect,
and president, Grant County State, Ulysses.
American Bankers Association Elections— LINTON C. LU LL, American
Bankers Association state vice president, and president, Smith County
State, Smith Center.
Address—“The Restructuring of Financial Institutions”—W. LIDDON
M cPETERS, American Bankers Association president-elect, and presi­
dent, Security Bank, Corinth, Miss.

SECOND SESSION, 10 a.m., May 7
Installation of Officers and Regional Representatives.
Silent Tribute to Former Presidents.
Address—“Management/Marketing Future Shock”— MORRIS E. MAS­
SEY, associate dean and associate professor of marketing, University
of Colorado-Boulder.


J. R. Ayres, KBA pres., is pres., Citizens
State, M iltonvale, which he helped organize
in 1946. He began his banking career w ith
G re e n le a f State 38 years ago.

Floyd V. Pinnick, KBA pres.-elect, is pres.,
G rant County State, Ulysses, which he joined
in 1931. He le ft G rant County State in 1936,
returning in 1953. From that tim e, he has
served as the bank's m anaging officer.

MID-CONTINENT BA N K ER fo r April, 1 9 7 6
Federal Reserve Bank of St. Louis

James Bartels, KBA treas., is ch. and pres.,
Farmers State, Hays, and Bushton State.
He began his banking career w ith Commerce
Bank of Kansas City, M o., 1947, advancing
to v.p. and correspondent head
before he left in 1970.


McPeters, Massey, Hanzlik
Are KBA Convention Speakers
At Century II, W ichita, M ay 5 - 7
With the upcoming presidential elec­
tions, the chosen theme for the 1976
Kansas Bankers Association is “Caucus
’76.” May 5-7 is the date and Wichita’s
Century II is the site for the event.
Spotlighted speakers during this
year’s Kansas convention are W. Liddon
McPeters, American Bankers Associa­
tion president-elect, and president, Se­
curity Bank, Corinth, Miss., whose
topic will be “The Restructuring of F i­
nancial Institutions.” Speaking on “Man­
agement/ Marketing F u tu r e Shock”
will be Morris E. Massey, associate
dean and associate professor of market­
ing, University of Colorado-Boulder,
while Robert Hanzlik of American Phy­
sical Fitness, Inc., Palo Alto, Calif., will
discuss “Fitness for Busy People” at
the men’s breakfast.
A 7 a.m. men’s golf tournament is
slated as the opening event of the con­
vention on May 5. Wichita Country
Club will host the banker-golfers.
Convention registration will begin at
8 a.m. at the entrance to the Exhibition
Hall of the Century II.
A women’s “Witness Wichita Bus
Tour,” presented by the Junior League
of Wichita, will begin at 12:45
Wednesday, May 5. Presented will be
historical and modern-day Wichita,
while a midway stop for tea at the
Wichita Art Museum is planned. The
“Caucus ’76” welcome party in the
Century II Convention Hall is sched­
uled as the day’s final event. It will
include a social hour, buffet and danc­
ing to the music of the Newton Graber
Registration at the entrance to the
Century II Exhibition Hall will con­
tinue throughout the convention’s sec­
ond day, Thursday, May 6, beginning
at 8 a.m. At the same time, the govern­

Chairpersons of events for KBA convention are pictured a t planning session. Seated, from I.,
are V iv ia n Igo, M a rily n Glass, Joe Stout, D avid M oore, Joan H ubbard and Patty H efner,
KBA sec. Standing, from I., are Burton Black, N e w t M a le , Terry Keller, Kenneth Nohe, C. W.
Barber, Jim Loomis, Fred M cM illen, Steve Hutchens, Beth Rains and Dean Becker. N ot pictured
a re Jim Aronis and M ike Astle.

ing council breakfast meeting will be­
gin in the Plaza Room of the Broadview
A May 6 women’s luncheon is slated
for 11:45 in the Century II Exhibition
Hall. Following the luncheon will be
a choral program by the Singing
Quakers of Friends University, Wichita,
with Cecil Riney directing.
Three concurrent luncheons will be
held at 12:15, May 6: the Schools of
Banking luncheon at the Lancers Club,
with a panel discussion on banking
schools planned, and the YBOK will
dine in the Wichita Club, as will the
50-Year Club.
A women’s shopping tour will leave
the Century II at 1:30 for the Towne
East Square, returning at 4:30.
The all-convention party is set to
begin with a social hour in the Century
II Convention Hall at 6 p.m., followed
one hour later by dinner in the Ex­
hibition Hall. At 8:30, the theater party
will commence in the Concert Hall,
with entertainment by Jack Morton
Productions: the Spurrlows, a singing
and dancing group; Tulara Lee, singer,
and Don Rice III, comedian. Dancing
is scheduled for 10-12 midnight in the

Convention Speakers




These three speakers w ill a p p e a r a t the Kansas convention in W ichita. They are (from I.)
W . Liddon McPeters, ABA president-elect, and pres., Security Bank, Corinth, Miss.; Robert
H an zlik of A m erican Physical Fitness, Inc., Palo A lto, C alif.; and M orris E. M assey, associate
dean and associate professor o f m ktg., University of C olorado-Boulder.

I 14
Federal Reserve Bank of St. Louis

Convention Hall, with music by New­
ton Graber’s Orchestra.
A men’s 7:30 a.m. breakfast will kick
off the events of Friday, May 7. A
featured convention speaker, Mr. Hanz­
lik, will be on hand to discuss “Fitness
for Busy People,” after which golf
tournament prizes will be awarded.
Topping off the KBA convention
schedule that day will be a noon cham­
pagne luncheon in the Convention Hall.
Committee chairmen. General chair­
man for the convention is Joe Stout,
vice president-correspondent officer,
Fourth National, Wichita.
Committee chairpersons, all from
Wichita—except where indicated— are
Vivian Igo, secretary-manager, Wichita
Clearing House—budget; Jim Loomis,
cashier, National Bank— champagne
brunch; Steve Hutchens, vice president
and cashier, Seneca State—facilities;
Burton Black, director, Chisholm Trail
State— 50-Year Club; W . Newton Male,
executive vice president, Prairie State,
Augusta—Flying Kansas Bankers; James
T. Aronis, vice president-marketing,
Fourth National— golf; Joan Hubbard,
assistant vice president and Towne
East Bank manager, Fourth National
and Marilyn Glass of Wichita State—
women’s activities; Dean Becker, vice
president, First National—men’s break­
fast; Michael V. Astle, vice president,
Central State—publicity; Terry Keller,
Union National—registration and hous­
ing; Beth Rains, senior vice president
and cashier, Twin Lakes State— schools
of banking; Kenneth Nohe, vice presi­
dent, general counsel and trust officer,
United American State—Thursday night
entertainment; Fred L. McMillen, as­
sistant vice president, Boulevard State
—Thursday night social banquet; C. W.
Barber, vice president, Kansas State—
welcome party; and David W . Moore,
vice president and cashier, City Na­

MID-CONTINENT BA N K ER fo r April, 1 9 7 6






* 7



at the










C o n v e n tio n
M ay








A sk Us A b o u t


# BflNKMflTIC® V

a n d our new



W e ’l l E x p e c t Y o u A t th e G a lle r y R o o m H o lid a y In n P la z a !

6th & Minnesota Avenue


Kansas City, Kansas 66101

MID-CONTINENT BA N K ER fo r April, 1 9 7 6
Federal Reserve Bank of St. Louis




Member F.D.I.C.
1 IS

12 Officers to Retire
From KBA Gov. Council

Marshall, Stoskopf to Run
For Kansas BA Positions

Twelve officers will retire from the
KBA Governing Council this year. Of
that number, six are regional vice presi­
Retiring regional vice presidents are
John A. Adair, chairman, president and
trust officer, Exchange National, Atchi­
son; John G. McNay, president, City
National, Pittsburg; Charles E. Grutzmacher, president,
First National,
Onaga; John Suellentrop, president,
State Bank, Colwich; C. N. Hoffman
Jr., president, National Bank of Amer­
ica, Salina; and Voyle E. Chance, pres­
ident, Fowler State.
Retiring one-year appointees are
Clyde Graeber, president, Leavenworth
National; Charles Wayman, chairman
and president, Emporia State; E. A.
Morse, president, Citizens Bank, Abi­
lene; Adolyn Bartels, president, Bank
of Inman; Jay Jelinek, president,
Munden State; and Dick Stevens, pres­
ident, Garden National, Garden City.

Elwood Marshall, president, Home
National, Eureka, is the candidate for
president-elect of the Kansas Bankers
Association, while Duane M. Stoskopf,
president and chairman, Kendall State,
Valley Falls, is running for KBA


Federal Reserve Bank of St. Louis







Besides serving with Home National,
Mr. Marshall is a director of Kansas
Bankers Surety Co. and Kansas De­
velopment Credit Corp., both of To­
peka. In the KBA, he has been treasur­
er (1974 -7 5 ), a section leader at Bank
Management Commission meetings,
chairman of the Bank Marketing Com­
mission and its seminars and a member
of the KBA Free Enterprise Advocacy
Task Force.
Mr. Stoskopf began his banking ca­
reer with Bazine State in 1963. In
1964, lie joined First National, Salina,
where he served as vice president and
assistant trust officer until going to
Hutchinson National in 1969. At
Hutchinson National, Mr. Stoskopf was
vice president, agricultural loans and
correspondent banking. He joined his
present bank as president and chairman
in 1971. Mr. Stoskopf has served as
chairman of the KBA Agricultural


dent. Mr. Blanchard moved up to presi­
dent in 1961 and chairman in 1970. He
headed the Kansas Bankers Association
in 1973-74. Fi'ed A. Dunmire, executive
vice president, has been elected a di­
rector. He has been with Commercial
National since 1957, and advanced to
his present position in 1970. He has
been responsible for the bank’s com­
mercial division lending functions for
nine years and had been an advisory
director since 1972. He also is presi­
dent, State Bank, Springhill, and a di­
rector, Lenexa State.
150 to 150,000th:

B icentennial Dollars Used
To C e le b ra te A n n ive rsa ry
Merchants National, Topeka, tied in
the nation’s 200th birthday with the
first anniversary of its White Lakes F a­
The bank awarded 150 bicentennial
silver dollars to the 150,000th customer
to use the facility. The award climaxed
week-long festivities that included giv­
ing every 10th customer who entered
the White Lakes Facility a bicentennial
silver dollar. Also, everyone who opened
a new checking or savings account re­
ceived one of the dollars.

■ CHARLES W. LEAR has joined
First National, Hutchinson, as exec­
utive vice president and a director. He
comes from Bank of Springfield, Mo.,
which he joined in 1969 as president.
Before that, Mr. Lear spent 20 years
with First National, Salina, in various
executive capacities. Besides being
president, Bank of Springfield, he was
on the boards of two other Missouri
banks, Peoples Bank, Branson, and
Bank of Kimberling City.
tired from Commercial National, Kan­
sas City, where he was chairman. He
joined the bank in 1947 and was as­
signed to head the correspondent bank
department. He served there until 1953,
when he became executive vice presi-

O liver H. Hughes (r.), ch., M erchants N a t l,
Topeka, presents sack of 150 bicentennial
silver dollars to Francis X. Specht, who w as
150,000th customer to use bank's W hite Lakes
Facility. A t I. is James M a i, fa cility mgr.
Presentation w as m ade during facilty's firstanniversary celebration. M r. Specht is gen'l field
rep., G overnm ent Employees Insurance Corp.,

MID-CONTINENT BA N KER fo r April, 1 9 7 6

A s p e c ia l in v ita tio n
to v is it u s
d u r in g th e K B A
C o n v e n tio n

John Riesen

Jim Stanley

S in ce 1 9 7 6 is our cen ten n ial year, we
would be pleased to have you com e by our
bank when you are in Wichita.
We have sen t each bank in K ansas a copy of
our souvenir history. However, if you would
like a personal copy or a copy for som eone
else in your bank,- please feel free to pick one

Dean Thibault

Paul Richmond

In a recent survey compiled by the Ameri­
can Banker, First National Bank in Wichita,
ranked first among banks in K ansas during
1 9 7 5 in total dollars invested in agricultural
loans. Please take a few m inutes during your
stay in W ichita to com e in and discuss our
agricultural lending program.



Correspondent Banking Specialists Since 1876
MID-CONTINENT BA N K ER fo r April, 1 9 7 6
Federal Reserve Bank of St. Louis


The Fowlers of Kansas: They re Banking s Largest Family


F T H E R E ’S a banking “dynasty” in
this country, the Fowler family of
Kansas surely is it, with the late James
T. Fowler as its founder. Besides estab­
lishing two banks in the state—Home
State, Arcadia, and First State, Arma—
and buying control of a third—Citizens
Bank, Weir—he became the father of
14 children, six of whom also went into
banking. In addition, several sons-inlaw, daughters-in-law and grandchil­
dren became bankers, and Mr. Fowler’s
widow (Ada) is chairman of the banks
in Arcadia and Weir. At one time, 23
members of Mr. Fowler’s family were
employed in Kansas and Missouri
When Mr. Fowler died January 13,
1970, at the age of 96, a life ended
that had begun October 12, 1873, in
a log cabin on a farm belonging to his
father, George Fowler. J. T. Fowler
spent most of his long life in the Ar­
cadia area, except for five years—from
age 17 to 22—that he lived in the
Pacific Northwest, where he worked in
lumber camps and mines. It was there
that he learned to use a revolver and
became a crack shot with any kind of
gun. This expertise stood him in good
stead when he returned to Arcadia and
opened a mercantile store. Bandits
learned to think twice about trying to
rob him, especially after he shot one
down in his store.
After opening the bank in Arcadia,
Mr. Fowler again proved his prowess
with firearms. One night, he and his
brother, John, were alerted to the fact

that some men were trying to break
open the bank’s safe. The Fowlers led
a posse to the scene and each brother
was credited with killing one of the
burglars. A third desperado escaped.
When Mr. Fowler died six years ago,
survivors, besides his widow, included
all seven of his daughters and six of his
sons. One son, George, was killed in a
Missouri auto accident in 1954. At
the time of his death, Mr. Fowler also
had 33 grandchildren and 18 great­
grandchildren. He had been married
twice. His first wife died, leaving him
with five children. His second marriage,
which produced nine children, was
highlighted by the celebration of the
Fowlers’ 50th wedding anniversary in
Even after reaching 90, the veteran
Kansas banker went to the Arcadia
bank every day and worked at the
same antique roll-top desk he bought
when he started the bank. He also
spent 60 years on the board of School
District No. 112, retiring at the age
of 90.
In 1935-36, the Fowler clan was
referred to as “banking’s largest family”
when it was the subject of articles in
the banking press. At that time, the
children ranged in age from 33 to two.
Currently, the following children of
J. T. Fowler are active bank officers:
C. G. (Glenn) Fowler, president of the
Arcadia bank and vice president of the
one in Weir; Doris Stelle, cashier and
secretary of the Arcadia bank; R. W.
(Bill) Fowler, president, Citizens Bank,

Weir; John T. Fowler, senior vice
president, correspondent bank division,
First National, Kansas City, Mo., and
director, Bank of Commerce, Chanute,
and First State, Arma; and David
Fowler, president, First State, Bur­
lingame. John T. is a former Federal
Reserve Bank examiner, and David
once was a national bank examiner.
Frances (Peachy) Bedene, a daugh­
ter, is inactive president, First State,
Arma. James V. Fowler, another son,
is inactive vice president, Home State,
Arcadia. Both also are directors of their
A son-in-law, John H. Bedene, is
executive vice president and cashier,
First State, Arma. Two daughters-inlaw—Wadean Fowler and Bette Fowler
— are secretaries, respectively, of the
banks in Weir and Burlingame. Two
grandsons, John Brent Bedene and
Bruce Fowler Bedene, are vice presi­
dents of the bank in Arma, and their
sister, Becky Bedene Bualle, is an in­
active vice president and a director of
the Arma bank. Another grandson, Joe
W. Fowler, is cashier, Citizens Bank,
Weir. William T. Stelle, also a grand­
son, has been an examiner for the
FD IC and the Fed. James V. Fowler
Jr., a grandson, is affiliated with Data
Processing, a subsidiary of Seattle-First
Combined resources of the four Kan­
sas banks with whom the Fowlers are
associated total $19.1 million. Individ­
ually, these banks’ assets are: Citizens
Bank, Weir— $3.2 million; First State,
Arma— $2.9 million; First State, Bur­
lingame— $9.5 million; and Home
State, Arcadia— $3.5 million.
Laughingly, Doris Stelle describes
her family as “neither Catholic nor
Irish, but—typical of both the religion
and nationality—prolific, loud and
boisterous!” She added that her father
ruled and disciplined all 14 children
“like a trumpet speaking.’ * •

Sons and daughters o f late James T. Fowler help him and Mrs. Fowler celebrate their 50th
w edd ing anniversary in 1964. Seated w ith couple a re D avid (I.) and John T. Daughters are
(I. to r.): Doris Stelle, lone G uthrie, Thelma Renfro, Jo Ferraro, Helen Knoll, Eller Jeter and
Frances (Peachy) Bedene. O th er sons are (1. to r.): Paul, R. W . (Bill), James and Glenn. Fowlers'
son, George, w as killed in auto accident in 1954.

Federal Reserve Bank of St. Louis

MID-CONTINENT BA N K ER fo r April, 1 9 7 6


during the 1976 KBA Convention
Continuing hospitality that will not conflict with official KBA functions.

The Security Team* of Bill Webber—Jay Breidenthal —John Peterson
—Bob Fitzpatrick—Ken Domer—Bob McDowell —will be your hosts.

L to R : (seated) Chm., W. L. Webber; V.P., W. Robert F itzpatrick; (standing) Pres., Gray Breidenthal; Corr.
Officer, Robert N. M cDowell; V.P., John Peterson; Asst. V.P., K. A. Domer; Sr. V.P., R. J. Breidenthal, Jr.;
Asst, to Pres., R. R. Domer.

T ^ /t C U t c /v F r > 'fy

T ftP y T ^ C U t c fv

Refreshments, Buffet
Thursday, May 6
10:30 AM to 1:00 PM
*President Gray Breidenthal and Assistant to the President
Bob Domer will also be at some of the meetings.


M^ ^ .er

1 S e c u rity Plaza
K ansas C ity, K ansas 66117
Dial D ire c t — 9 1 3 -2 8 1 -3 1 6 5

MID-CONTINENT BA N K ER for April, 1 9 7 6
Federal Reserve Bank of St. Louis

i 19

■ LEEANNA HOW SER has been
named assistant cashier, Industrial
State, Kansas City. She has been with
the bank 22 years and supervises the
bookkeeping department.
■ BOB C A FFA R ELLI, formerly vice
president, First National, Olathe, has
been promoted to senior vice president.
C. C. Finney has been advanced from
assistant vice president to vice presi­
dent, and Barbara J. Corrigan, previ­
ously assistant cashier, has been elected
assistant vice president. In addition,
Dr. Robert E. Delphia, a local physi­
cian, has been named a director.
■ GARY R. W ELCH has been named

president, Northgate National, Hutch­
inson, after resigning as commercial
loan officer, Hutchinson National. At
Northgate National, he succeeds Keith
Williamson, who has resigned. Mr.
Welch began his banking career in
chairman and president, Central State,
Wichita, has been named salesman of
the year by the Sales and Marketing
Executives of Wichita, Inc. Mr. Langenwalter heads the economic develop­
ment division of the Wichita Area
Chamber of Commerce and was cited
for his help in obtaining a federal portof-entry permit for the city in 1974.

First of Wichita Is 100
W ICHITA— During this bicen­
tennial year for the U. S., First Na­
tional here is observing its centen­
nial. The bank began as Farm er’s &
Merchant’s in November, 1876, after
another First National (no connec­
tion with the present bank) failed
because it had overextended itself in
questionable cattle paper and in
constmction of an elaborate build­
ing. Therefore, the new bank— ac­
cording to a booklet put out by the
present First National— “originated
in an atmosphere which demanded
a policy of the utmost conserva­
tism.” Hiram W . Lewis was the first
In 1882, the bank was reorganized
and renamed Kansas National after
receiving a national charter. In 1895,
Citizens Bank was merged with
Kansas National. As the new century
arrived, the bank began, in 1900,
an association with the banking fam­
ilies of Berryman, Chandler and
Woods that lasts to the present.
Stock in the bank owned by James
O. Davidson was purchased by
J. W . Berryman, Charles Q. Chan­
dler, E . E . Masterman and W . S.
Woods, with Mr. Chandler taking
over active control of the bank. In
1919, Kansas National and National
Bank of Commerce were consolidat­
ed as First National in Wichita (to
differentiate it from the ill-fated
First National of W ichita).
Since then, the bank weathered
the depression of the 1930s and
entered the new age of automation,
E FT S and accent on public relations
and marketing. The modern-day
First National now has another
Chandler— C. Q. Ill— as president.

Portfolio and Funds Management
Is Focus of New ABA School

‘T I S M O R E ....
th an L u ck o’ the Iris h
that brings about good Correspondent Banking!
It’s PEOPLE like our Correspondent Banking Team:


m ftu fc h w s o n m f f a t io n a l
b a n k a n d tru st c o m p a n y
H U T C H IN S O N , K A N S A S

Federal Reserve Bank of St. Louis

Mem ber F.D .I.C .

Lu Alan

DALLAS—The ABA has announced
its first National School of Bank Invest­
ments, May 23-29, at Southern Method­
ist University here.
Portfolio and funds management will
be the primary area of concentration
at the school, while a customized BankSim exercise will be incorporated to re­
inforce the lecture portion of the course.
Registration for the in-residence
school will be limited to 150 students.
Registration fee is $550, and the cur­
riculum is designed for bank investment
specialists having three to five years’
Registration forms and additional in­
formation are available from Saundra
Currance, registrar, National School of
Bank Investments, American Bankers
Association, 1120 Connecticut Avenue,
N. W., Washington, DC 20036.

MID-CONTINENT BA N KER for April, 1 9 7 6

Do You W ant to Buy
Control of a Bank?
Do You W ant to Sell
Control of a Bank?
Do You W ant to Make a Start,
by Buying a Minority Interest?

If your answer to any of the
above questions is "Yes'', the
man for you to contact is
J A S O N V. OTT, President

Prescott, Wright, Snider Co.
Phone 816 842-3143
Tw enty W e s t N inth Building
Kansas C ity , M o . 64105
Since 1885

Our firm has been in the investment banking business since 1885. We
can also serve your needs in the fields of Listed Securities, Municipal
Bonds, Corporate Bonds, Over-The-Counter Stocks and Mutual Funds.

MID-CONTINENT BANKER for April, 1 9 7 6
Federal Reserve Bank of St. Louis


Kansas Bankers Line U p fo r 'Tee' Time

G olf carts are lined op like race cars at the In dianapolis 500 as Kansas bankers prepare to
tee off a t the W ig -W a m Country Club in Phoenix. They w ere pa rt of a group of correspondent
bankers w ho attended First N atio n a l of Topeka's P ow -W ow Conference a t the A rizona resort.
The four d ay event attracted 36 Kansans and their spouses and m ingled business sessions w ith
opportunities for relaxatio n such as golf.

External Communications to Increase
In O ver 3 3% of HCs, Study Shows
V ER O NE-THIRD of the HCs in
America are planning to increase
their external communications during
1976, according to a survey by Ruder
& Finn, Inc., financial public relations
counseling firm.
Nearly all HCs will at least maintain

their present level, the study also points
Ruder & Finn conducted the survey
among 234 leading HCs. The firm re­
ceived 42 responses— 18%—from com­
panies with assets ranging from $60
million to $25 billion.

The competitive edge.
When your business plans to locate or expan d in
G reat B end, we ask you to talk with our person able
officers w ho represent 180 years o f financial ex­
perience. Our com petitive loan rates and quality
banking service are the result o f sound m anagem ent,
fust w hat y ou ’re seeking.

Specific areas said to be destined for
greater attention this year are stock­
holder communications and security
analyst contact. Particular emphasis
was placed on meetings with brokers
and on formal analyst-society presenta­
tions. Nearly all HCs indicating in­
creased activity announced PR budgets
in excess of $50,000 annually.
Regarding aspects of HCs to be high­
lighted in future communications, there
was an inclination shown toward stress­
ing total financial services. The feeling
was expressed by many that there is a
need to overcome investor loss of con­
fidence in banks and banking institu­
HCs also plan to emphasize their
traditional banking activities, the re­
search shows. This is due to the associ­
ation most have with their lead banks,
and understanding of and confidence
in those institutions materially affects
how the HC is perceived by all its key
What are the problems foreseen for
bank HCs during 1976? Ruder & Finn
found strengthened capital base to be
the most important, with 79% of the
respondents placing that at the top of
the list. Debt was shown to be the pre­
ferred vehicle over equity by a two-toone margin.
Other perceived problems
ranked near the top of the list were
loan losses, loss of investor confidence,
R E IT investments and relations with
regulatory agencies.
Half the respondents said the HC
president appears as a spokesman be­
fore local community groups. Most of
the companies indicated they met with
the local press at least regularly or oc­
casionally, while 71% reported regular
contact with the banking trade press.
Sixty percent meet regularly with the
national media.
The most commonly mentioned eco­
nomic issues facing HCs in 1976 were
seen to be (in order of occurrence) con­
tinued effects of inflation and govern­
ment spending, unemployment and its
impact on deposits and consumer loan
demand, weakness in bank equity mar­
kets, lagging commercial loan demand,
cost of increased customer services, in­
terest-rate ceilings and financial-com­
munity support. * *

A B A To C o n d u c t Survey
O n C o rp o ra te R esponsibility
Main Bank, 17th & Main
Westgate Bank, Broadway at K-96
Great Bend, Kansas

Federal Reserve Bank of St. Louis

The American Bankers Association
has asked 2,600 banks to participate in
a survey to again assess the industry’s
involvement in corporate social re­
This is the third such survey the ABA
has conducted, the latest being made in
MID-CONTINENT BA N KER fo r April, 1 9 7 6

in v e s tm e n t B a n k in g S in c e 1 8 9 0

U N D E R W R IT E R S - D IS T R IB U T O R S - D E A L E R S




& C O M P A N Y IN C O R P O R A T E D

D ire c t W i r e to


t h e E x c h a n g e F lo o rs



MID-CONTINENT BA N K ER fo r April, 1 9 7 6
Federal Reserve Bank of St. Louis


Prepare N O W for Annual Meetings

Booklets That Aid (!) Bank Management
• A Code of Ethics. 4 pages. Sample
policy statements by two banks, covering
personal conduct of officers, inside and
outside the bank. Example: sets criteria
for conflict of interest, political activity,
outside interests, trading in bank stock,
gifts and entertainment that can be ac­
cepted by officers. No. 116, 3 copies $1.
• Capital Adequacy. 4 pages. When does
a bank have enough capital? Should a
bank resist supervisory pressure to increase
capital? Should a committee of board mem­
bers keep abreast of capital requirements
for their bank? These and other questions
discussed. No. 117, 3 copies for $1.
• The Bankers’ Handbook. Considered the
most complete and definitive reference
source covering current practices. It places
the money knowledge of 90 of the country’s

(2) Bank Directors
(3) Bank Stockholders
• Bank Stock Prices. How the price
range of a bank’s stock should be de­
termined is discussed in this four-page
study. The pros and cons of high and
low stock prices are examined so direc­
tors can determine where to set the
price of their bank’s stock. No. 134, 3
copies for $1.
personnel and employees transferring from
one position to another. No. 122, $28.
• The Effective Branch Manager. This
book was written to show ways in which
bank branch managers can develop man­
agement skills which are indispensable for
the effective functioning of any branch. It
is recognized that management involves
several clearly definable functions: plan­
ning, organizing, motivating, controlling
and communicating. Each of these skills is
examined and then applied to the specific
problems of branch management. No. 128,

leading bankers at the fingertips of the
banker or businessman, in a concise, ana­
lytical style. In it are the answers to most
of your questions about banking— easy to
use. 11 major sections— in 87 chapters.
1230 pages. No. 120, $30.00.
• Bank Audits and Examinations. This
study, written in non-technical language,
is designed to be helpful (1) to an inde­
pendent accountant engaged to conduct
an opinion audit, (2) to an internal bank
auditor who wishes to make his work more
effective and ( 3 ) to a bank director who
wishes to compare procedures followed by
his bank with the modern methods out­
lined. No. 121, $32.
• Organizing Jobs in Banking. A practical
manual designed for bank officers and de­
partment managers to use as a guide in
defining the duties and responsibilities of
every position in the bank. It establishes
position qualifications and job specifications
and contains suggestions for training new

• W hat Every Bank Director Should
Know About Bank Counsel. A pithy dis­
cussion of the advantages and disadvan­
tages of a bank maintaining full-time coun­
sel, and whether that counsel should be an
elected director. The counsel-director re­
lationship is also covered— a vital relation­
ship in these days of complicated legal
maneuvering. No. 129, 3 copies for $1.
• Management Policies for Commercial
Banks. 2nd edition by Howard D. Crosse
and George H. Hempel. Substantially re­
vised edition dealing with major policies of
liability and asset management in banks.
Includes examples of major policies and
the relationship of policy makers and the
issuing of policy. Examines lending prac­
tices, personnel, marketing management
and portfolio management and capital
structure. No. 131, $15.95.
• Management Succession. 8-page study.
This has been termed the number one
problem in banking. Directors have the
legal duty to staff their banks and this
publication provides invaluable aids to as­
sist directors in this area. Includes a com­
prehensive checklist for management de­
velopment. No. 133, $1.
© W hat Every Bank Director Should
Know About Public Relations. A veteran
journalist and P R man describes what P R
is and how a message can be relayed to

the public: how the good works of your
bank can be publicized. Includes an ex­
ample of a deposit-building program that
worked; also describes how the bank’s
personnel were “sold” on the program,
thus insuring its effectiveness. No. 135, 3
copies for $1.
• Bank Officer’s Handbook of Commercial
Banking Law. Fourth Edition, a complete
revision, authorized by Frederick K.
Beutel, formerly dean of the University
of Louisiana Law School. Twenty-two
chapters, plus tables. Contains thorough
coverage of the Consumer Credit Protec­
tion Act, the Uniform Consumer Credit
Code, revisions of the Uniform Commer­
cial Code and all legislation affecting
banking. Fully indexed for instant an­
swers; table of cases; clear, concise, non­
technical language. No. 136, $32.50.
• W hat Every Director Should Know
About Personnel Management. One im­
portant aspect: evaluation of employment
policy . . . the director should understand
this. Also, each bank should have a re­
cruitment policy and a general policy with
respect to the role of fringe benefits. No.
139, 3 copies for $1.
• How to Analyze a Bank Statement. This
5th edition by F . L . Garcia is designed
to keep abreast with the remarkable de­
velopments of recent years: the prolifera­
tion of bank holding companies, changes
in reporting requirements, the growing
popularity of bank stocks, and the dis­
closure of more financial data from banks.
For the first time, Professor Garcia has
included a special section on the reporting
requirements and analysis of bank hold­
ing company statements. No. 138, $28.
• Commercial Problem Loans. A study
that makes a significant contribution to
improving lending skills by filling a
void in the loan department’s litera­
ture. The problem loan is identified in
detail and a program of supervision is
outlined. The volume includes a 41page chapter on collecting problem
loans and a case study of a fraud that
brings all the points discussed into full
play. Also included are a complete
sample credit file and a hypothetical
credit policy statement. Published in
1974. No. 137, $18.

O rder by Number Using Coupon on the O pposite Page
Federal Reserve Bank of St. Louis

MID-CONTINENT BA N K ER for April. 1 9 7 6

P LA N N IN G Keeps the Bank Board Informed!
A few hours of advance planning PAYS OFF in the meeting.
• This 28-page booklet provides some workable agendas, suggestions for
advance planning and also lists types of reports that a board should re­
ceive monthly and periodically. It emphasizes the need for properly in­
forming the board as quickly and as concisely as possible. The booklet will
serve as an excellent supplement to PLANS that your bank already has
made for its board meetings.

Check Box No. I l l , $ 2 .9 0 per copy

• Bank Directors and Their Selection,
Qualifications, Evaluation, Retirement. 24
pages. Answers key questions concerning
director selection, retention and retire­
ment. Special section: the prospective di­
rector and how he should be expected to
contribute to the bank’s success. No. 101,
$2.65 per copy.
• Bank Shareholders’ Meeting Manual. 60
pages, 8/2 x 11". Designed to aid directors
of state-chartered banks, this book dis­
cusses conflict of interest, minority rights,
fuller disclosure, voting of trust-held se­
curities, preparation of stock purchase and
stock option plans, also capital notes and
The manual also is helpful in updating
annual shareholders’ meetings at a time
when stockholders are becoming more in­
sistent on receiving meaningful information
at annual meetings and in annual reports.
No. 102, $7.75 each.
• A Model Policy for the Bank’s Board
of Directors. 24-pages, reviews typical
organizational chart, duties and responsi­
bilities of managing officers and various
standing committees, loan, investment and
collection policies, and an outline of a
suggested investment policy. No. 103,
$2.65 per copy.
• Annual Review for Officer Promotions.
4-page study, contains 12 point-by-point
appraisals of officer performance and
potentials. No. 104, 3 copies for $1.
• Check List of Audit Procedures for
Directors’ Examination. 23-part outline en­
compasses review of major audit cate­
gories. Special 4-page study. No. 105, 3
copies for $ 1.
• Bank Board Policy and the Preroga­
tives of Operating Management. Special
study focuses on utilization of skills and
knowledge of “outside” directors; should
the board do more than merely set
policy?; who should operate the bank—the
Federal Reserve Bank of St. Louis

board or management? No. 106, 3 copies
for $ 1.
• The Board of Directors and Effective
Management. Harold Koontz, 256 pages.
Critical look at directors’ role: functions
and responsibilities, decision areas, control,
relationship of success to more productive
management. No. 107, $13.25 per copy.
• Deferred Compensation Plan for Direc­
tors. Explanation of an important IRS
Ruling that will allow your directors to
collect directors fees after retirement, thus
offering substantial tax savings. No. 108,
3 copies for $1.
• A Business Development Policy. A plan
for the small bank in setting up objectives
and establishing responsibilities in the of­
ficer staff for getting new business, holding
present business. No. 109, 3 copies for $1.
• SALES: How Bank Directors Can Help.
Detailed outline of a program that has
developed more than $40 million in new
business for a holding company chain in
the Southeast. No. 110, 3 copies for $1.

• The Bank Board and Loan Policy. This
28-page booklet discusses the reasons for
a bank having a written loan policy. The
booklet presents loan policies in use by
two well-managed banks that will aid your
bank in establishing broad guidelines for
your lending officers (particularly junior
staff officers) so they will not be in the
dark concerning bank loan policy. No.
113, $2.90 per copy.
• How to Prepare for Kidnap/Extortion
Threats. 4-page study, outlines security
precautions to take at the bank and at
home, sample “alert” system, action to
take during and after threat. No. 114, 3
copies for $1.

Please Send These Management Aids:
101 . . . . copies

$ ....

117 . . . . copies


102 . . . . copies

$ ....

120 . . . . copies


Send Completed Coupon W ITH CHECK

121 . . . . copies

to: Commerce Publishing Co., 408 Olive

103 . . . . copies

$ ....

122 . . . . copies


104 . . . . copies

$ ....

128 . . . .



105 . . . . copies

$ ....

129 . . . . copies


131 . . . .



106 . . .


$ ....

133 . . . .



107 . . .


$ ....

134 . . . .



135 . . . .



108 . . .


$ ....

136 . . . .


109 . . .


$ ....

137 . . . .



NO . ..


$ ....


. . . copies


I ll


$ ....


113 . . .


$ ....

114 . . .


$ ....

139 . . . .





(In Missouri add
4 '/2% Tax)

St., St. Louis, Mo. 63102, publishers of
The BANK BOARD Letter, Mid-Continent
Banker and Mid-Western Banker.

Enclose check payable to



Bank or C o m p a n y ........................................
A ddress...........................................................


F ro m th e IVIid -C o n tin e n t A r e a
■ R O B E R T J. BLA CK W ELL has
been named president and CEO, Hen­
derson National, Huntsville. He goes
there from First National, Mobile, affili­
ate bank, where he was senior vice
president and investment division man­
ager. He has been in banking 15 years.
■ F IR S T NATIONAL, Opp, has elect­
ed James C. Kelsoe, vice president and
cashier, and George C. Pierce, vice
president, as directors. Mr. Kelsoe
joined the bank in 1961 and Mr.
Pierce, in 1966.
been elected a diiector of Commercial
Guaranty Bank, Mobile. He is con­
troller of a local bakery.

First Woman CEO in Mobile
M O BILE— Betty M. Jordan, pres­
ident and CEO of the new Com­
monwealth National, reportedly is
the first woman to head a Mobile
financial institution.
The bank, which has been in op­
eration since February 19, is tem­
porarily headquartered at 2214 St.
Stephens Road, but officials expect
to move into permanent quarters
later this year.

■ THOMAS C. JOYCE, manager of
the Mountain Brook-Office Park Branch
of First National, Birmingham, has
been promoted to vice president. He
joined the bank in 1963.
named assistant vice president at First
National, Mobile, while Mable Brettel
has been elevated to personnel officer.
Elected branch officers were Thomas J.
McAleer Jr. and Stephen E. Pollman
Jr. Tony Van Aken has been promoted
to international officer.
gomery, has received 21 awards from
the Advertising Club of Montgomery
for outstanding advertising produced
during 1975. The bank’s marketing de­
partment was presented with seven
gold and 14 silver awards during the
Advertising Club’s 16th annual awards
■ OPELIKA NATIONAL has elected
Walter A. Parrent and S. Frank What­
ley as directors, filling newly created
posts. Both Messrs. Parrent and What­
ley are senior vice presidents. In addi­
tion, shareholders have voted to convert
Opelika National into a state bank, to
be called Bank of East Alabama. Regu­
latory approval is pending.

■ JO E D. POW ERS has been elected
president, chairman and CEO of Union
Bank of Benton, succeeding Wilford R.
Pruett, who has resigned to accept the
post of general vice president for spe­
cial projects at Utica National, Tulsa.
Mr. Powers joined the bank in 1968
as executive vice president and chief

Other Commonwealth National
officers are George L . Langham,
chairman; and E . Malcolm Collins
III, vice president and cashier.
Mrs. Jordan has 23 years’ bank­
ing experience with American Na­
tional, Mobile, where she most re­
cently served as vice president. She
also was administrator for eight
American National branches.
Mr. Collins began his banking
career with Florida First National
at Brent, Pensacola, in 1961. In
1970, he was promoted to cashier.
Mr. Collins also served 2 years as
cashier, W est Orlando (F la .) Bar­
nett Bank.

Federal Reserve Bank of St. Louis

administrative officer. He advanced to
vice chairman in 1974. Mr. Powers for­
merly was with City National, Fort
tle Rock, has named the following as
directors: Betty Baird, president, Baird,
Inc., Arkansas Sign and Neon Co. and
Bonanza Realty Co.; Richard Hiendlmayr, vice president, Olin Corp.; and
Thomas F. “Mack’’ McLartv, president,
McLarty Companies.
■ JOHN O. B U TLER II has been pro­
moted to data processing officer at
Twin City Bank, North Little Rock. He
joined the bank in 1970 and has served
as manager of proof and transit and
data processing.
■ RONALD B. JACKSON has been
elevated from cashier to vice president
and cashier at First National, Jonesboro.
He has been with the bank since 1969.

has announced the promotions of
R. Lane Smallwood to vice president
and trust officer; Jack Olmstead and
John Wilson, to assistant vice presidents
and farm managers; and Diane Kingery,
to assistant trust officer, operations.
constructing a new Main Office, with
completion slated for July 15. Design
and construction is being carried out
by Bunce Corp., St. Louis. The build­
ing is of a bi-level design conforming
to the contour of its site. Its exterior
will feature two-story solar bronze glass
panels, sand-colored brick and ano­
dized extruded aluminum fascias. The
interior will have earth-tone colors,
bronze-finish metals and natural oak
■ DAVID A. HEINRICH has joined
Millikin National, Decatur, as a com­
mercial lending officer. He formerly
was vice president, loan department,
Logan County Bank, Lincoln.

Union N atio n a l Bank Bldg.

5 0 1 /3 7 4 -7 5 5 5

Little Rock, Arkansas
J. E. WOMELDORFF, Executive Vice President

■ KEN NETH D. M IL L E R has been
named executive vice president and a
director of Michigan Avenue National
and its HC, Michigan Avenue Financial
Group, both of Chicago. He joined the
bank in 1960 and previously was senior
vice president and controller.

MID-CONTINENT BA N K ER fo r April, 1 9 7 6

Sireuter Heads IBA Division
Robert Streuter, vice president
and consumer credit department
manager, City National, Murphysboro, has been elected president,
Illinois Bankers Association Con­
sumer Credit Division. His term
commences July 1.
Other officers elected were Law­
rence A. Wilson, vice president,
City National, Dixon — first vice
president; David G. Siebert, execu­
tive vice president, First National,
Dwight—second vice president; and
Norman C. Peterson, assistant secre­
tary, IBA—secretary.

dition, the bank has enlarged its Motor
Bank to six lanes and has added a
walk-in and a night depository.
■ HENRY K. GARDNER, president,
National Boulevard Bank, Chicago, has
assumed the additional duties of execu­
tive committee chairman and CEO,
following the resignation of Irving Sea­
man Jr. Mr. Gardner joined the bank
in 1970, going from Continental Illinois
National, Chicago.

■ R O B E R T E. O TTERBA C H ER has
been elected assistant vice president,
Heritage/County Bank, Blue Island. He
joined the bank in 1974 and is respon­
sible for developing new business in the
commercial and industrial areas.
Rockford, has moved into its new head­
quarters, United Center. The new
building is located in a downtown plaza
and features glass walls and terrazzo
floor on the banking level. The second
and fourth floors are open for rental,
while the third floor houses trust and
investment services, safe deposit and
cash vault and executive offices. In ad­

■ A F FIL IA T E BANKS of United
Banks, Rockford, have undergone a
name change. Their old and new names
are: Ogle County National, Oregon, to
United Bank of Ogle County; Central
National, Rockford, to United Bank of
Illinois; First National, Belvidere, to
United Bank of Belvidere; Park State,
Loves Park, to United Bank of Loves


...the Btsimum
luxury accomodations
Spacious suite with its own all­
electric kitchen/bar, theatrical
vanity, carpeted mosaic bath. Some
suites with Bidet and Grand Piano.
Complimentary continental breakfast
served in your suite.
1 3 0 0 N. A S TO R ST.
C H IC A G O , IL L . 6 0 6 1 0
William C. Wolf, General Manager
( 3 1 2 ) 943-1111

Where you dine in elegance
at AAjt/rv'i de PARIS



MID-CONTINENT BA N KER fo r April, 1 9 7 6
Federal Reserve Bank of St. Louis

Park; Southgate Bank, Rockford, to
United Bank of Southgate; and State
Bank, Rockford, to United Bank of
Rockford. In addition, the HC has
adopted a new logo featuring the
letter “U.”
MOUTH has connected an adjacent
building to its main quarters to provide
for greater installment loan, commercial
loan and trust services. The new wing
also houses an employees’ room and an
enlarged directors’ room. The converted
space is decorated in the same manner
as the older bank offices, with walnut
wainscoat paneling and carpeted floors.
Planner and construction manager for
the project was Bunce Corp., St. Louis.
■ F IR S T NATIONAL, Chicago, has
promoted the following to vice presi­
dents: Gary J. Campbell, Joseph J.
Gillings Jr. and Lewis H. Harmon.
Alexander Hart, vice president, has
been named to head the BankAmericard division, while Thomas Sheehy
and Nels Johnson, both vice presidents,
have been transferred to the traveling
auditors division. Mr. Sheehy will head
the division.
TIONAL, Chicago, has named the fol­
lowing vice presidents: William D.

'What makes thex
Taft Hotel
the best
for business
and pleasure?
Its Location.

Right at your
doorstep are theatres, restaurants, shops,
transportation. R ock efeller C en te r, Radio
City Music Hall, Central Park and Lincoln
Cente r are within minutes of your room.
And what accommod atio ns! 2 , 0 0 0 magnifi­
cent air conditioned rooms and suites. T h e
T a ft, home of the Cattleman West and
Enrico & Paglieri restauran ts. Singles from
$ 2 0 . 0 0 . Doubles from $ 2 5 . 0 0 . Special
family rates. Parking available. It all makes
New Y o rk a nice place to visit. Anytime.


8 0 0 - 2 2 3 -9 8 4 4

For re s e rv a tio n s or in fo rm atio n , call you r tra ve l a gen t or Hotel Ta ft,
7th A ve n u e and 50th Street, N ew Y o rk 10019 Phone (2 1 2 ) 247-4000

V_________ ______________________ J

Snider, commercial banking; Gerald J.
Sanford and John L. Sebesta, con­
troller’s division, corporate financial
services; Edward T. Lenahan, opera­
tions and management; and Eldon W.
Bergstrom Jr., trust and investment.
Sandra Kay Crawford, Kevin J. Hallagan and Francis E. Shine III have
been elected vice presidents and asso­
ciate corporate counsels.

■ JOHN KEM NER has been named
region general manager for Mosler’s
enlarged Mid-Atlantic sales region.
Mosler is headquartered in Hamilton,
O. Mr. Kemner will have headquarters
in Columbia, Aid., and will be responsi­
ble for sales, installation and service of
Mosler automatic bank tellers and other

son, Wis., has named David G. Richey
and Randolph C. Nail Jr. as district
sales directors in Indiana. Mr. Richey
will cover Indianapolis and central In­
diana. He previously was with Mercan­
tile Mortgage Corp., Indianapolis. Mr.
Nail, who will cover northern Indiana,
formerly was a mortgage loan officer
with Hamilton Mortgage Corp., At­



■ CITIZENS BANK, Jeffersonville,
has promoted the following to assistant
vice presidents: Richard E. Alexander,
Howard A. Brewster III, Carol] D.
Cox, Mary I. Haehl, Jo Hammond and
Charles R. Meyer.
■ JAM ES A. BUNNING has been
appointed manager of the Hebron Of­
fice of Northern Indiana Bank, Val­
paraiso. He formerly was personnel offi­
cer, First State of Cobb County,
Smyrna, Ga.
■ W E N D E LL H. BROWN has joined
Fowler State as assistant cashier, while
Linda I. Brewer has been elevated to
auditor. She joined the bank in 1968.
been named assistant vice president­
marketing at Peoples Trust, Fort
Wayne, while Fred S. Mertz has been
elected purchasing officer and Larry D.
Riley has been elevated to assistant
trust officer.



security and transaction equipment in
an area including Kentucky. He will be
assisted by James Dyer, who has been
apointed region sales manager. Mr.
Kemner has been with Mosler 23 years
and formerly was region manager of
the company’s previous Mid-Atlantic
sales area.
■ R O BERT L. EPLIN G has been
elected president, Central Bank, Lex­
ington. Prior to his appointment, Mr.
Epling had been president, Dania
(F la.) Bank, and before that headed
the Marathon (Fla.) Bank.
■ STEPH EN D. HALE has been ele­
vated to assistant cashier and manager
of the Clay City Branch of Powell
County Bank, Stanton. He joined the
bank in 1973 and has worked in several
■ CHARLES O. PASLEY has been
named vice pi'esident, National Bank,
Paris, and will have responsibility in
the consumer-loan area. He goes there
from First National, Georgetown.
■ BEN L. LYKINS has been elected
executive vice president and a director
of First Farmers Bank, Owenton. He
joined the bank in 1972 and has served
on its executive and loan committees.
■ JASPER M. PEARSON has been
promoted to cashier, Waco Deposit
Bank. He has been with the bank since

KBA Convention Set
L O U ISV ILLE— The Galt House
here will host the 82nd annual con­
vention of the Kentucky Bankers
Association September 12-14.

Federal Reserve Bank of St. Louis

■ BRU CE W EBB has joined Corbin
Deposit Bank as cashier, while Willadean Chandler has been named auditor.
James E. Rogers has been appointed
assistant vice president, and Larry
Rogers and Terry Roark have been
named assistant cashiers.
■ B ILLY C. HOUSE has been elected
assistant vice president, First National,
Carlisle. He joined the bank in 1973
and is responsible for commercial-loan
■ BEN F. BROW N has been elected
president and Brien E. Risk has been
named chairman, F i r s t
Nicholasville. Also promoted were
Michael Marks, from cashier to vice
president and cashier; J. Frank Hall,
from assistant vice president to vice
president; J. Samuel Sternberg, from
assistant cashier to assistant vice presi­
dent; and James Bailey, to assistant
been announced at Citizens Fidelity
Bank, Louisville: William T. Simpson,
vice president and financial planning
manager, to senior vice president and
investment management manager; W.
Robert Tennill, vice president, account­
ing, to senior vice president, account­
ing and finance; and E. Fredrick Zopp,
vice president and general counsel, to
senior vice president and general coun­
sel. F. Gerald Greenwell, assistant trust
officer, financial planning, has been
advanced to trust officer; Allen J. Duffin, administrative assistant, security, to
operations officer; and Ken Forsthoefel,
credit and collection manager, BankAmericard, to assistant cashier. James
Thompson, chairman and CEO, Glenmore Distilleries Co., Louisville, has
been elected a bank director.

M ississippi
a JAM ES T. M ITC H ELL has been
appointed president, Bank of Meridian,
and executive vice president, adminis­
tration, Quitman Banking System. He
also was named to the bank’s board
and its executive and investment com­
mittees. Mr. Mitchell goes there from
Peoples Bank of Mississippi, Union,
where he served as president of its
Meridian Branch.
a DAVID W. W E ST has joined
Southern National, Hattiesburg, as trust
officer. He formerly was with A. A.
Harmon & Co. CPA firm, New Orleans,
where he had been supervisor of the
tax department.
elected executive vice president, First

MID-CONTINENT BANKER for April, 1 9 7 6

Looking For Answers?
BAI Has Them.

At conventions, conferences, seminars, workshops,
think sessions, and courses. Coordinated by a professional staff with practical
experience in every aspect of bank administration. Providing the most effective tools,
techniques and problem-solving ideas to help you cope with today’s ever-changing
banking environment. So plan now to attend a BAI convention in 1976. You 11 be able
to discuss your hanking needs with people in the know— bankers, educators,
consultants— authorities in the financial community who will add new dimensions to
your banking professionalism.





Be sure to attend one or more of the following major meetings in 1976:
April 4-6
Eastern Regional Convention
Norfolk, Virginia

June 6-8
Western Regional Convention
Salt Lake City, Utah

February 1-5
ERISA Conference
Chicago, Illinois

April 20-22
Conference on Bank Holding
Company Administration
St. Louis, Missouri

August 1-8
The Graduate Program in Bank
Madison, Wisconsin

March 7-10
Exception Item Conference
Chicago, Illinois

May 2-4
Northern Regional Convention
Chicago, Illinois

August 1-13
School for Bank Administration
Madison, Wisconsin

March 21-24
EDP Audit Conference
Kansas City, Missouri

May 16-18
Southern Regional Convention
Oklahoma City, Oklahoma

October 17-20
52nd National Convention
Philadelphia, Pennsylvania

January 25-27
Seventh National Conference
on Bank Security
New Orleans, Louisiana


303 South Northwest Highway

Federal Reserve Bank of St. Louis

Park Ridge, Illinois 60068



National of Holmes County, Pickins. He
will continue as manager of the bank’s
Pickens Branch.
been named president, First Citizens
Bank, Poplarville. Prior to his appoint­
ment, Mr. Robinson had been with a
bank in Jackson for 14 years and had
spent the past five years as executive
vice president, Bay Springs Bank.
been elected president, Bank of Mis­
sissippi, Grenada, succeeding Henry J.
Ray Jr., who has assumed duties as the
bank’s administrative consultant. Mr.
Carroll’s banking career began with
Grenada Trust in 1962. He was named
vice president when the bank merged
with Bank of Mississippi in 1974.

■ FRANK L. VICTOR has been ele­
vated from executive vice president to
vice chairman at Grand Avenue Bank,
Kansas City, while Barbara Pendleton,
vice president and secretary since 1962,
has been named executive vice presi­
dent. Mr. Victor joined the bank in
1962 and heads the business develop­
ment department. Miss Pendleton is a
former national president, National As­
sociation of Bank-Women Inc. Continu­
ing as president and CEO of the bank
is Lyle Wells Jr.



■ R. MARION LUCAS has been pro­
moted from cashier to vice president at
First National Mercantile Bank, Mont­
gomery City. Succeeding Mr. Lucas as
cashier is Thomas J. Niedergerke, for­
merly assistant cashier, while Marcus A.
Deeker has been named assistant cash­
ier. In addition, Flavius P. Wyatt has
been named a director. He is a local
has announced the following promo­
tions: Plelen K. Duncan and John H.
Ferguson, from assistant vice presi­
dents to vice presidents. Dale A. Gries130
Federal Reserve Bank of St. Louis

sel, formerly senior vice president and
cashier, Guaranty National, Tulsa, has
joined the bank as vice president,
while Henry Mancini, a local business­
man, has been elected a director.
■ I HE F E D has approved the merger
of Ameribanc, Inc., St. Joseph, and
First American Bancshares, Inc. The
latter HC’s affiliate banks, which will
join Ameribanc, are First American
Bank, Skidmore; First National, Plattsburg; First American Bank, Union
Star; First National, Stewartsville; and
Bank of Edgerton. The merger brings
to 12 the number of banks affiliated
with the St. Joseph HC.
■ TH E F E D has approved the affilia­
tion of Bank of Ladue and First Na­
tional Charter Corp., Kansas City.
■ COM M ERCE BANK, Kansas City,
has announced several promotions:
Theodore D. Lyons, to vice president,
central securities department, which
he manages; Eugene L. Mahaffey, to
vice president, BankAmericard, where
he is assistant center manager; James
L. Peters, to vice president, bond de­
partment, where he serves as money
market and U. S. Treasury and federal
agency securities manager; and John J.
Williams, to vice president, national
division, commercial loan department.
James R. Trigg has been named assist­
ant vice president, national accounts
■ WAYNE D. M USKOPF, personnel
manager, First National in St. Louis,
has been promoted to vice president,
while G. Jeffrey Jones has been ele­
vated to assistant vice president. Mil­
dred B. Yahl has been named a per-,
sonal banking officer and John Britton
has been appointed a business develop­
ment officer. In addition, Robert C.
West, president and CEO, Sverdrup &
Parcel & Associates, Inc., St. Louis, has
been elected a director of the bank.
■ CENTRAL TRU ST, Jefferson City,
has named two senior vice presidents:
James T. Herfurth, operations, and Al­
bert T. Able, data processing. Neil T.
Baker has been promoted to vice presi­
dent and manager, Central Data Co.,



while Richard T. Schutt has been ele­
vated to second vice president.
* VALLEY BANK of Florissant has
changed its name to Commerce Bank
of Florissant, reflecting its affiliation
with Commerce Bancshares,
Kansas City.
■ ROGER L. GARRISON, vice presi­
dent and trust officer, Commerce Bank
of Springfield, has been promoted to
senior vice president-trust. William T.
White, assistant vice president-commer­
cial loans, has been elevated to vice
president-commercial loans; Harold W.
Bouldin, assistant vice president-install­
ment loans, to vice president-install­
ment loans; Mary Ann Horton and
Larry A. Wilkerson, installment loan
officers, to assistant vice presidents-installment loans; Frank W. Hilton, com­
mercial loan officer, to assistant vice
president-commercial loans; and Bar­
bara L. Bates, to real estate loan of­
Port, St. Louis County, has elected
William A. Donze Jr. and Gary B.
O’Neal vice presidents. Mr. Donze re­
tains his titles of controller and director
of data processing, while Mr. O’Neal
manages commercial lending.
■ THOMAS KINSEY, formerly senior
vice president and cashier, Bank of
Kennett, has been elected to the newly
created position of executive vice presi­
dent, chief operating officer and di­
rector, Citizens Bank, Pacific. The two
banks are affiliates of First Union, Inc.,
St. Louis. Mr. Kinsey joined Bank of
Kennett in 1950.
* EDW ARD J. BOOS has been pro­
moted to assistant vice president in the
agriculture-correspondent banking de­
partment, First National, St. Joseph.
He joined the bank in 1973 as a repre­
sentative in that department.
■ CHARLES A. BOWMAN has been
advanced to senior vice president and
operations officer, United Missouri Bank
of Kansas City, while John C. House
and Fritz R. Krolimer have been named
vice presidents. Jon J. Henderson has
been elevated to assistant vice presi-




dent. Mr. Bowman joined the bank in
1959; Mr. House, in 1973; Mr. Kroti­
mer formerly was with the Kansas City
Fed; and Mr. Henderson joined UMB
in 1970.

New Mexico
■ F ID E L IT Y NATIONAL, Albuquerque, has become an affiliate of New
Mexico Bancorp., Inc., Santa Fe. In the
move, Jack Daniels, Fidelity National
executive committee chairman, and Bob
Tinley, bank president and CEO, have
been named to the New Mexico Ban­
corp. board.

credit and loan review manager; and
Gary Pullen vice president and auditor.
Mr. Skaistis previously was with Arthur
Andersen & Co., where he was a con­
sultant for the data processing opera­
tions of Bank of Oklahoma. Mr. Madi­
gan formerly was senior vice president
and credit policy chairman with an
Oklahoma City bank HC, and Mr. Pul­
len goes to Bank of Oklahoma from
First National, Dallas.
■ RAYMOND E. M ILTZ has been
appointed regional banking section
manager at First National, Tulsa. A
vice president, he joined the bank in
1974 and formerly was a livestock con­
sultant and appraiser.

■ F IR S T NATIONAL, Albuquerque,
has announced the promotions of Jo
Anne Jones and Janetta Sharp to assist­
ant vice presidents, real estate depart­
ment. Mrs. Jones joined the bank in
1958, while Mrs. Sharp joined First Na­
tional in 1963.
■ F IR S T NATIONAL, Los Alamos,
has held a display of four bronzes by
Frederic Remington to celebrate the
opening of its new office at Trinity and
20th. The office features three pneu­
matic drive-up lanes. Titles of the
shown are “Rattlesnake,”
“Cheyenne,” “The Bronco Buster” and
“Rough Rider Sergeant.” In addition, a
daily drawing for $100 was held the
first two weeks of the office’s operation.
■ JOHN R. THOMAS has retired as
regional administrator of national banks,
Denver, and has been succeeded by
Kent D. Glover. Mr. Thomas has been
with the Comptroller’s office 30 years
and had been 12th Region administra­
tor since 1962. That region covers New
Mexico, Arizona, Colorado, Utah and
Wyoming. Mr. Glover, who has been
with the Comptroller’s office since 1951,
had served as deputy regional adminis­
trator in San Francisco since 1964.

■ BANK O F OKLAHOMA, Tulsa, has
named Bruce Skaistis vice president
and information services manager; Har­
old J. Madigan vice president and



A Sensible Risk

Program In One
Step- By-Step
Desk Top
Reference Guide.
Now every commercial banker can understand,
plan and monitor a sensible program of Risk
Management. This new, concise manual helps
you measure all the loss exposures you
face...shows how to reduce needless and costly
insurance gaps or overlaps...aids you in
establishing a full-dimensional risk manage­
ment program, including loss funding, to
conserve your bank assets and get more for
your insurance and protection dollar.

■ R O BER T C. VanLAANEN has been
elected vice president in charge of
commercial loans at Stock Yards Bank,
Oklahoma City. Prior to joining Stock
Yards Bank last February, Mr. VanLaanen was vice president, commercial
loans, First National, Oklahoma City.
■ EU G EN E DEAN has been ad­
vanced from vice president to senior
vice president at City National, Lawton,
while Robert Joe Nall, formerly cash­
ier, has been named vice president.
Zelda Davis has been elected vice presi­
dent; Pauline Roper has been elevated
from assistant cashier to cashier, and
Steve Barnes, to assistant vice presi­
dent. Named assistant cashiers were
Gene Norman and Bob Burroughs.
■ B IL L RICHARDSON, who owns
controlling interest in First National of
Britton and Grant Square Bank, both
of Oklahoma City, and in Plaza Na­
tional, Bartlesville, has bought con­
trolling interest in Capitol Hill State,
Oklahoma City. He has been named
chairman, succeeding J. B. Seligson,
who remains a director. Wayne Lawler
continues as bank president. J. L.
Thompson has been named a director,
while A. T. F. Seale and Charles R.
Stuart have left the board.
■ W. E. HARVEY, formerly executive
vice president, First Bank, Sand Springs,
has been named president, following
the resignation of Louis R. Hughes for
health reasons. Succeeding Mr. Harvey
as executive vice president is Clark
Walton, while Gary Spencer has been
elevated to vice president.

Federal Reserve Bank of St. Louis


This unique manual - (which is by the same
publisher o f the Risk and Insurance Manage­
ment Guide For Savings Institutions) - takes
you step-by-step through every area of Risk
Management planning - in simple terms, with
specific examples. You needn't be an insur­
ance agent to understand it. Yet every section
reveals new, proven ways to reduce your risks,
losses and problems and is constantly kept up
to date.

•Complete Loose-Leaf, Tab-Divided, Section Indexed
•Ten issues of “ Risk Management News"
•Guide Updates For The First Year



You will be automatically billed $50.00 annually for
continuing service beyond the first year to keep your
guide current.

Take 10 days to examine this vital manual at your
leisure. If you are not satisfied, simply return the guide at
no cost or obligation.

_ **


M id -C o n tin en t Banker
408 Olive St.
St. Louis, Mo. 63102

Please send me The Risk and Insurance Management
Guide for Bankers. The $100.00 initial price includes the
first ten issues of ''Risk Management News" plus all
revisions and additions to the Guide. I understand if I
am not completely satisfied I may return the Guide
within ten days and my money will be refunded.
Please include appropriate sales tax.
□ Check enclosed, please ship postage paid.

Bill me and add $2.50 to cover postage and handling.


□ Please send me further information.
City............................... State.......................Zip..


■ COLIN M. HENDERSON has been
elected vice president and trust opera­
tions officer, Fourth National, Tulsa.
Mr. Henderson began his banking ca­
reer with National Bank of Commerce,
Dallas, and later served as trust officer
with another bank in Tulsa.

vice president and trust officer. Donald
L. Lockmiller has been named an as­
sistant vice president. Mr. Bryan joined
the bank in 1966; Mr. Dickerson, in
1972; and Mr. Lockmiller, in 1974.
promoted to vice president, retail di­
vision, American National, Chattanooga.
He will serve as assistant to the retail
division head and will have responsibil­
ity for the Master Charge/EFTS, re­
tail adjustment, retail marketing and
business development departments.

■ JAM ES W. BRUCE JR. has been
named senior vice president, Liberty
National, Oklahoma City. Also named
in promotions were Jean R. Johnson, to
vice president and senior investment
officer; Charles B. Johnson, to vice
J. David Jensen, to vice president; Rob­
ert P. Goodwin, to assistant vice presi­
dent and investment officer; Rodney L.
Lee, to assistant vice president and as­
sistant controller: and J. Terry Cook
and Paul J. Kelly, to assistant vice
■ F IR S T NATIONAL, Bartlesville,
has promoted the following to senior
vice presidents: Robert W. Butler,
Barry M. Hudson and Bruce E. Oakley.
Neal T. Seidle has been named senior
vice president and senior trust officer,
while Paul D. Brown has joined the
bank as vice president. Mr. Brown will
work with area farmers and ranchers
and will maintain contact with First
National’s correspondent banks. Mr.
Butler joined the bank in 1952; Messrs.
Hudson and Seidle, in 1964; Mr. Oak­
ley, in 1960; and Mr. Brown formerly
was with John Hancock Life as Okla­
homa senior field representative, agri­
cultural investment department.

Tennessee Young Bankers
Schedule Annual Convention
For Nashville, April 13-14
NASHVILLE—The Hyatt-Regency
has been slated as headquarters for the
Tennessee Young Bankers Division con­
vention April 13-14.
An impressive list of guest speakers
will be on hand for the business ses­
sions during the two-day event: T. Scott
Fillebrown Jr., vice chairman, First
American National, and president of
its HC, First Amtenn Corp., both of
Nashville; Harry B. Brock Jr., CEO,
Central Bank, Birmingham; Winfield
Dunn, former Tennessee governor; Joe
Hemphill, state commissioner of bank­
ing; and John Merritt, head football
coach, Tennessee State University,
Entertainment for the convention
Federal Reserve Bank of St. Louis

Manufactured Housing
(Continued from page 22)


will include golf and tennis tourna­
ments, while entertainers slated for the
first of two evenings’ receptions are
Grand Ole Opry Stars George Grove
and Larry Moore. Russ and Becky
Jeffers will entertain at the other re­
Sandi Burnett and her band, Chops,
will play for the annual dance.
For the spouses, a tour of Music City
U. S. A. is planned. It will be followed
by a makeup demonstration by Norma
Robert Williams, cashier, First Na­
tional, Savannah, is president of the
Tennessee Young Bankers. President­
elect is Lee Beeman, president, Liberty
Bank of Tennessee, Athens. Tom Hol­
land Jr., vice president and cashier,
Union National, Fayetteville, is the
division’s vice president.
■ F IR S T NATIONAL, Memphis, has
named George Lewis and James M.
Crews Jr. as executive vice presidents.
Joe H. Davis Jr. has been appointed
vice president and metropolitan divi­
sion manager, succeeding John P.
Dulin, who has been elected president,
First Tennessee National, Chattanooga.
Thomas J. Rutter replaces Mr. Davis
as regional branch manager.
■ CHARLES J. BRYAN has been ele­
vated from assistant vice president to
vice president at Third National, Nash­
ville, while William Richard Dickerson
has been advanced from trust officer to

to “sweat it out” should be beneficial
to the manufactured-housing industry.
The industry has been concerned
with three types of insurance: credit
bond, physical damage
vendors single interest) and credit life
and accident-and-health.
Credit insurance has about run its
course. It indemnifies lenders against
losses on repossessions. There have
been many abuses of it by all partici­
pants, resulting in gigantic losses for
insurers. Insurers still in the business
are providing limited protection to
lenders, dealers and service companies,
and require the participants to assume
a reasonable share of the risk and the
losses. That will be the type of credit
insurance henceforth offered to the in­
dustry: no longer will it be possible for
a dealer, lender or a service company
to pass the total risk over to an insur­
ance company. This healthy situation
bears out the fact that no segment of
the manufactured housing industry
stands alone; each depends on the
Physical-damage insurance has played
an important part in industry develop­
ment. Insurance companies have per­
formed magnificently, providing cus­
tomer protection despite the poor qual­
ity of some homes and the high inci­
dence of loss by fire and windstorm.
To provide protection for dealers and
lenders, vendors-single-interest protec­
tion was developed, in which dealers
and lenders assume the risk of purchas­
er conversion of the home, its furniture,
appliances and equipment. It has been
abused badly.
Some carriers have ceased writing
coverage for the industry. Others have,
changed their programs to suit changed
conditions, in some instances reducing
the term of their policies and restrict­
ing the territories in which they do
business. Perhaps it’s with that in­
creased quality and better cooperation
from all segments of the business that
insurance experience will improve, thus


Lee Daniel,
a banker’s banker.
Correspondent Bankers
For a knowledgeable, direct connection to our Corporate
S ervices — including Cash M anagem ent—get connected with
Lee Daniel.
His prior experience in heavy industry has added a valuable facet
to his personal financial know-how. Take advantage of it.
Let Lee Daniel fit your financial needs
into our ca pa b ilitie s—fast.
( 918 ) 584-3411

Marvin Bray

Bill Hellen

M cNam ara

Charles Rice
D epartm ent Manager

P.O. Box 2300 / Tulsa, Oklahoma 74192

Federal Reserve Bank of St. Louis


making the industry more attractive to
more insurers.
Credit life and accident-and-health
insurance, available for many years, has
been a source of income for dealers,
lenders and service companies. A deter­
rent factor has been that premiums for
coverage, loaded into the finance
charge, increase the customer’s monthly
payments rather substantially, adding
to sales resistance. It’s valuable protec­
tion for buyer and family but has no
affect on the manufactured-housing
industry’s welfare. * *

M ason Succeeds Fischer
As Executive Vice Pres.,
C onsum er Bankers Assn.
Mason Jr. has been named to succeed
the retiring Robert A. Fischer as execu­
tive vice president of the Consumer
Bankers Association.
The CBA represents the interests of
the installment lending operations of
many of the nation’s commercial banks.
In his new position, Mr. Mason, who
previously was director of public affairs
for the National Consumer Finance As­
sociation and director of public infor­
mation for the American Bankers As­
sociation, will have responsibility for
overall supervision of the CBA’s activi­
ties in development of methods of con­
sumer banking administration, commu­
nications and legislative relations. He
also will serve as director of the CBA’s
Graduate School of Consumer Banking.
Mr. Fischer had been the associa­
tion’s executive vice president for the
past 18 years and had been in the con­
sumer credit industry 43 years. Prior to
assuming the CBA post in 1958, he
was in charge of the consumer loan
department at Hoosier State, Ham­
mond, Ind.

Home-Improvement-Loan Rebates
Are Offered to Bank Depositors
Customers of United Missouri Bank,
Ferguson, who qualify for a homeimprovement loan, receive a $50 rebate
in the form of an interest and payment
To qualify, one must be a depositor
of the bank and must qualify for a
loan: $1,000 minimum, $5,000 maxi­
mum. The rebate program will end
June 30.

Federal Reserve Bank of St. Louis

Disclosure Dilemma
(Continued from page 12)
view has been undergoing a great deal
of réévaluation. What once was con­
sidered “material” now might be con­
sidered quite differently and what was
“immaterial” a few years ago, today,
under the SE C ’s interpretations, is
likely to be considered material. This
is especially true in subjective areas
where there may be some moral judg­
ments. In other words, there’s a grow­
ing voice saying an unethical or illegal
act—even though of very small financial
consequences— does trigger the concept
of materiality, indicating a basic flaw in
the character of the organization.
Using the perceptions of full, fair,
adequate and honest reporting of ma­
terial events, one actually is plowing
new ground, as well as raising the ques­
tion of the form of the company’s code
and its impact on the precise behavior
of the institution.
This raises tremendous questions
about the manner in which these can
be presented, especially in light of to­
day’s widely expanded qualitative con­
cept of materiality. * *

Index to Advertisers


Alamo Bank of T e x a s ....................................... 134
American Bank of Commerce, El Paso
American Express Co. (Travelers Cheques) 26-27
Amiel Industries ..............................................
Astor Tower Hotel ............................................ 127
Automation Forms Co., Inc...........................
Bank Administration Institute .............
Bank Board Letter ................................... 124-125
Bank Building Corp............................................ 15
Bank of America ..............................................
Bank of Oklahoma .......................................... 133
Bank of the Southwest, Houston ...............
Bavis & Associates, E. F.................................. 47
Boatmen’s National Bank ............................... 69
Central Trust Co.
Chase Manhattan Bank .................................
Cheshire Inn & Lodge ..................................... 38
Citicorp Services, Inc. (Travelers Checks) 70-71
City National Bank, Baton Rouge ...............
Commerce Bank, Kansas City
Commercial Nat'l Bank, Kansas City, Kan. 115
De Luxe Check Printers, Inc......................... 54
Detroit Bank & Trust Co.................................. 89
Diebold, Inc. ...................................................... 53
Doane Agricultural Service, Inc................... 62
Downey Co., C. L..............................................
Fabcraft, Inc........................................................ 25
Farmers Grain & Livestock Hedging Corp. . 14
Federated Securities Corp............................... 89
Financial Industry Systems ........................... 45
First Alabama Bancshares
..................... 44
First American Nat’l Bank, Nashville ........ 83
First City National Bank, El Paso ............... 109
First City National Bank, Houston ............. 105
First National Bank, Amarillo ..................... 100
First National Bank, C h ic a g o ....................... 4-5
First National Bank, Hutchinson, Kan......... 112
First National Bank, Kansas City ...............
First National Bank, Louisville .................
First National Bank, St. Louis ................... 136
First National Bank, Wichita ....................... 117
First Nat’l Bank & Tr. Co., Alton ............... 93
First N at’l Bank of Commerce,
New Orleans ..................................................
First Oklahoma Bancorp............................... 10-11
First Security National Bank ....................... 49
Fourth National Bank, Tulsa ....................... 37
Fourth Nat'l Bank, Wichita ......................... 43
Frost National Bank ....................................... 103
Harland Co., John H.......................................... 59
Harrow Smith Co................................................ 126
Hattier, Sanford & R e y n o ir............................. 96
Hotel Taft..........................................................
Howard, Weil, Labouisse, Friedrichs & Co. 96
Hutchinson Nat’l Bank ................................... 120
Industrial Life Insurance Co......................... 102

Insurance Enterprises, Inc............................... 60
Insured Credit Services, Inc............................
Integon Corp........................................................ 23
International Silver Co..................................... 77
Kansas Bank Note .......................................... 65
Liberty Nat’l Bank, Oklahoma City ..............
Lubbock National Bank ................................. 106
MGIC Indemnity Corp................................... 78-79
Meilink Bank Equipment ............................... 80
Mercantile Bank, St. Louis ...........................
NCR Corp.............................................................. 41
National Boulevard Bank ............................... 57
National Stock Yards National Bank .......... 135
Northern Trust Co............................................
Palumbo & Co., Inc., George ....................... 40
Payment Systems Newsletter ..................... 39
Polk & Co., R. L..........................
Prescott, Wright, Snider Co............................ 121
Rand McNally & Co.......................................... 56
Risk Insurance Management Guide ........... 131
St. Mary Bank & Trust Co.............................. 97
Security Corp.......................................................
Security National Bank ................................. 119
Security State Bank ....................................... 122
Springfield Marine Bank ............................. 90
Standard Life Insurance Co........................... 17
State National B a n k ......................................... I l l
Stifel, Nicolaus & Co., Inc............................... 123
Texas Bank & Trust Co.................................... 107
Union Bank & Trust ....................................... 88
Union National Bank ..................................... 92
United Missouri Bank, Kansas City ............ 13
Whitney National Bank ................................... 94
Worthen Bank & Trust Co............................... 51
Zahner & Co........................................................ 84

If you are a recently-retired, or aboutto-retire, cashier or operations man, would
you like to live in the Magic Rio Grande
Valley? Our 18 million dollar bank is
located near McAllen, Texas, in the heart
of the country’s most enjoyable, sub-tropic,
tourist and retirement area. We are rich
in diversified agriculture as well, which
helps to make us one of the fastest grow­
ing banks in the Valley.
We need a mature, experienced banker
who enjoys meeting the public, participat­
ing in civic affairs, and who has the
necessary personnel skills to supervise the
Bank’s operating departments.
Thorough knowledge of EDP and the
note department is essential. Our bank is
clean and well managed, and 100% locally
If you are a banker who has too much
enthusiasm and energy to just quit, drop
me a line and send a resume:
John H. Northcutt, President
Alamo Bank of Texas
P.O. Box 546
Alamo, Texas 78516
or call 512-787-4261.

12' x 60' Bank • 3 Tellers
Privafe Office • Carpeting
Electric Heat • Central A ir
Available immediately. Call Col­
lect: 517-631-2076 or write: Stan
Bobit, P.O. Box 2164, Midland, Ml

Commissions, upper five figures. Must be
“Pro” with successful record that can be
verified. Send resume to Midcontinent Energy
& Financial, Inc., 1515 N. Warson Rd., St.
Louis, Mo. 63132. Then call for interview,
(314) 423-4644.



Although Ray Madorin relaxes on the links during those respites from
work-week pressures, he lets no grass grow under his feet when It comes
to consideration of your correspondent matters,
He swings and pitches and putts and ponders ,,, and that's when his
subconscious works best on matters that are strictly business, Thus Ray
does his share in keeping S.Y.B. the nation's No, 1 Bankers' Bank ,,, even
on Fundays.
But on decision-making days, it's par-for-the-course for him to swing
into your particular correspondent problems, You can reach him in
just ten holes — 618-271-6633,


J u s t a cro s s the r iv e r fro m S t Louis



Member Federal D^pos«! Insurance Co
Federal Reserve Bank of St. Louis

Work with a banker
who knows what his bank
can do for you.
Federal Reserve Bank of St. Louis

At First National Bank in St. Louis, our corre­
spondent bankers are trained in what our bank can
do for you. Across the board. Department by
The result is men with solid experience and
individual authority. So they can make fast decisions
for you on their own.
T h ey’re backed by a bank with strong, steady
growth. And total banking capabilities including
overline loans, bond department services, computer­
ized check collection, cash management systems.
Plus our annual correspondent seminars where you
can exchange ideas and learn about new profit
Get to know your First National correspondent
banker. He knows his bank. He’d like to put us to
work for you.

First National Bank in St.Louis Wfc
Member FDIC i H I