Full text of The Northwestern Banker : April 1968, 74th Year, No. 1090

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Annual
Bank
Investment
Review

How Banks Can
Protect Against
Burglaries and
Holdups

Pages 35-42

Page 44

•s a s ;

Convention
rograms

-a s s Way 5-1

C O U V E E '0 «
way î ’*

-P age 67

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

re 81

Look into MNB's Safekeeping Services...
you'll be surprised.

Pleasantly surprised! □ In addition to simply pro
tecting your securities, MNB will notify you when
your securities become due and provide advance
notice of important events (such as bond maturity
dates). We'll provide a list of your securities, and
if you like, we'll accept open orders to buy and

sell securities, at given prices, as the market per
mits. □ These MNB extras are no surprise to over
half of all Iowa bankers who are currently MNB
correspondents. We would like to have you join
them. Call our Correspondent Department or Bill
O'Toole in our Bond Department, 319-365-0411.

MERCHANTS NATIONAL BANK
CEDAR RAPIDS, IO W A 52401
MEMBER F.D.I.C.

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

For m en w ho
m ake things happen

, TRUST NORTHERN
Trust Northern to have the men
who get things done. These are
first-string men . . . men who can
make lending decisions.
T h e y also have a v a riety o f
ways to help you get new business
. . . invest short term funds profit
ably . . . provide portfolio assist
ance . . . and help with operations
analysis, speedy check collections,
or customer loan problems.
Supporting them are the special
ists back at the Bank . . . portfolio
tax specialists who will work closely
with you to increase your after-tax

income . . . automation specialists
who will help you use highly tech
nical equipment . . . and many
others. All are available to find the
best solutions for you.
Take advantage of our action
men. Call or write Mr. N. Hall
Layman, V ice President, Corre
spondent Banking Department.

NORTHERN
TRUST
COMPANY

IB A N K

NORTHWEST CORNER LASALLE & MONROE
Chicago 6 0 6 9 0

• Financial 6 -5 5 0 0

• M em ber F.D.I.C.

N o. 1090. N orthwestern Banker is published five times a m onth by the N orthw estern Banker Com pany, 306 F ifteenth Street, Des Moines, Iow a 6 0 3 0 9 .
Subscription 50c per copy, $ 6 per year. Second class postage paid at Des Moines, Iowa. Address all m ail (subscriptions, change o f address, F orm 3 5 7 9 ,
m anuscripts, m ail item s) to above address.

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Federal Reserve Bank of St. Louis

when was
the last time
a professional
bank insurance counselor
reviewed your bank’s
insurance program?

SCARBOROUGH

the bank insurance people

33 North Dearborn Street • Chicago, Illinois 60502
Northwestern Banker, Âpril, 196B

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Federal Reserve Bank of St. Louis

Heads Midwest Territory
John J. Evans, vice president, has
been named head of the mid-western
territory of Manufacturers Hanover
Trust’s national division (New York).
Mr. Evans will supervise the bank’s
b u sin e ss in 13
states: Idaho, Il
linois, In d ia n a ,
Iow a, K a n s a s ,
M in n esota, Mis
sou ri, Montana,
Nebraska, North
Dakota, South
Dakota, W i s c o n
sin and Wyom
ing.
H is territorial
associates include
John F. King, vice president; George
R. Bennett, Carl G. Carlson, and Na
thaniel S. Howe, Jr., assistant vice
presidents; Frederic J. Sears and Rus
sell H. Eichman, Jr., assistant secre
taries.
Mr. Evans has been a banker since
1950 when he joined The Hanover
Bank’s executive training program.
He was named an assistant secretary
in 1956, and represented the bank in
Indiana, Minnesota and Wisconsin.
-v,

With the merger of The Hanover
and Manfacturers Trust Company in
1961, Mr. Evans continued in the na
tional division, with special responsi
bility for business in all major cities
of Illinois, Indiana and Wisconsin. He
was elected an assistant vice presi
dent in 1959 and vice president in
1963.

Insured Credit Names
Executive Officer
Arthur J. Frentz, president of In
sured Credit Services, Inc., Chicago,
announces the promotion of Leland
C. McCallum to the position of exec
utive vice presi
dent.
Prior to joining
Insured Credit in
1958, Mr. McCal
lum served for 23
y e a r s in th e
Washington head
quarters office of
th e F e d e r a l
Housing A d m i n
istration where,
L. C. M cC A L L U M
during 1956 and
1957, he was top administrator of the
FHA’s Title I Property Improvement
Program.

Insured Credit Services is the first
and largest underwriter of improve
ment loan insurance for banks, and
now has an insured loan volume ap
proaching $400 million.

Oldest Financial Journal West of the Mississippi

for your A P R IL , 1 9 6 8 , reading
74th Year

No. 1090

EDITORIALS
16

Across the Desk from the Publisher

35
36
38

Analyzing' a Country Bank Portfolio— R. L. Johannesman
Bank Portfolio Management— Gay P. Gervin
Banks Now Large Buyers of Institutional Bonds

40
43
44

Examining Your Securities Portfolio— John D. Turner
Banks and the Student Loan Program— Lewis E. Davids
How Banks Can Protect Against Holdups, Burglaries

ANNUAL BOND AND INVESTMENT REVIEW

— Thomas J. Kenny

—Marvin L. Shay

STATE BANKING NEWS
53
54
58

Minnesota News
Twin City News
Bank Management Conference— Report and Pictures

67
70
72
74
75
75
77
78
81
82
84
88
94
96

South Dakota Bankers Association 76th Convention Program
You Will See Them at the South Dakota Convention
Annual A g Conference Slated for Huron, April 17-18
76th Convention Committees
North Dakota News
Montana News
Wyoming News
Colorado News
Nebraska Bankers Association 71st Convention Program
Nebraska Convention Committees
Omaha News
Group Presidents Report Farm and Business Outlook
You Will See Them at the 71st Annual Nebraska Convention
Bank Management Conference— Report and Pictures

— Ben Haller, Jr.

—Ben Haller, Jr.

97
99
102
104

“ Chuck Wagon Roundup” — James K. Freeland
Iowa News
Des Moines News
State Banking Conference Program

116
117
117
118
118

Index of Advertisers
W hat’s New fo r Banks and Bankers
Convention Calendar
Index of Advertisers
In the Directors’ Room

OTHER FEATURES

NORTHWESTERN BANKER
306 15th S treet, Des Moines, Iowa 50309, Telephone (A re a Code 515) 244-8163
Publisher
Malcolm K. Freeland

Chairman
Clifford De Puy

Editor
Ben J. H aller, Jr.

Associate Editor
Kenneth Rowe

Associate Editor
Barbara

Franklin

Advertising Assistant
Mildred Savich

Circulation Department
Lena Sutphln

Field Representative
Al Kerbel

Field Representative
Joe M. Smith

Auditor
Bertha Soderquist
Field Representative
Paul Masters

Frank P. Syms, Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126

Northwestern Banker, April, 1968

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

Agri-banking
is a fertile
field
There's always a market for farm
participations.
And the Harris can help you with
yours. Our agri-bankers work closely
with you on farm credit. And make
your farm overloans go a lot
more smoothly.
Ask your Harris Man for our
comprehensive Agricultural Credit Kit.
Expect the best when your
correspondent is the Harris.

HARRIS

Trust

and
Savings

BANK

111 West Monroe Street, Chicago, Illinois 60690

Organized as N. W. Harris & Co. 1882, Incorporated 1907 • Member Federal Deposit Insurance Corporation • Federal Reserve System

Northwestern Banker, April, 1968

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

7
1st National, Chicago, Assigns
Gerald Fitzgerald in Iowa
The First National Bank of Chicago
has combined the activities of the gov
ernment and municipal bond depart
ments into the investment depart
ment. In line with this reorganiza
tion, the sales
section of the in
vestment departm e n t h a s as
signed Gerald E.
Fitzgerald to the
Iowa t er ri t ory .
Mr. F i t z g e r a l d
will be responsi
ble for portfolio
i n v e s t m e n t s of
Iowa customers.
G. E. F I T Z E R A L D
Mr. Fitzgerald,
an assistant vice president, has at
tended both the American Institute of
Banking, and the Graduate School of
Banking at the University of Wiscon
sin.

Avoid losses in your
Home Improvement
Loan Portfolio...
BANKRUPTCY

Har ris Bank Keassigiinieiits
Two realignments within the bank
ing department of the Harris Trust
and Savings Bank, Chicago, have
been announced.
John A. Sivright, vice president in
the national group, has been trans
ferred from Division 2 to Division 6.
Mr. Sivright, who will now have re
sponsibility for accounts on the East
Coast, formerly handled accounts in
Iowa.
STRIKES-LAYOFFS

OVER-O B LIG A TIO N

...by lending only "protected dollars” !
Bankers from coast to coast are enjoying increased home
im provem ent loan profits with 100% protection. The Insured
Credit Services plan has been in operation since 1954 and is
now a tradition with hundreds o f bankers who are lending
only “ protected dollars.”
W. W. HOW ELL

J. A. S I V R I G H T

William W. Howell, assistant vice
president in the national group, suc
ceeds Mr. Sivright in Division 2. He
was formely assigned to Division 1
where he had responsibility for ac
counts in Wisconsin, Minnesota and
North and South Dakota. He will
continue to hold responsibility for ac
counts in Minnesota and the Dako
tas.

Name New York V.P.s
H. Carnie Lawson and E. Wayne
Nordberg have been named vice presi
dents in the trust and investment di
vision of First National City Bank,
New York.

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Federal Reserve Bank of St. Louis

W rite today fo r in fo rm ative brochure

Don't take chances—
Shift the risk to /. C. S.

IN S U R E D C R E D IT
S E R V IC E S
IN C .

Arthur J. Frentz, President
Leland C. McCa/lum, Vice President

3 0 7

North M ichigan Avenue

C h ic a g o , Illinois 6 0 6 0 1

FIRST A N D L A R G E S T U N D E R W R IT E R O F
C R E D IT IN S U R A N C E ON IM P R O V E M E N T LOANS
Northwestern Banker, April, 196$

BANKERS SAY
SUCH NICE THINGS
ABOUT
THE FARMPICTURE®

Ronald M. Sewell
E xecutive V ice P re side n t
Tri-C o u nty S tate Bank
El Dorado S prings, M isso u ri

writes
Please accept my compliments
on the June issue of The Farm
Picture.

I especially appreci

ated the article titled “FOUR
KINDS OF NOTES” . This article
was brief, very informative, and
should enable our farmers to
better understand our banking
requirements.
We have found that The Farm
Picture is greatly appreciated by
our customers and, as a result,
has tied them closer to our
bank.
Very truly yours
Ronald M. Sewell

For Free Samples write
Farm Business Council, ine.
P. 0 . Box F
Urbana, Illinois 61801
DigitizedNorthwestern
for FRASER Banker, April, 7968
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Hunk Kuihlinfi Sales
REVIEW and forecast of Bank
A
Building and Equipment Corpo
ration sales and profits highlighted
the annual stockholders’ meeting held
recently at the company’s headquar
ters. President and Chief Executive
Officer W i l l i a m
F. C a n n e xplained the fact o r s affecting
profits and stated
that p r o s p e c t s
for 1968 are very
encouraging.
Sales for 1967
t o t al ed $44,200,000, up $9,000,000
from the previ
w . F. C A N N
ous peak of $35,000,000 reached in 1964. However, net
earnings of $658,996 were reduced
from previous years due to losses in
curred on high-rise projects completed
in Mobile, Ala., and Tulsa, Okla.
Approximately $33,000,000 of the
$44,000,000 gross sales figure repre
sents the company’s normal type of
financial building business.
Forecasting future projects, Mr.
Cann said, “We completed fiscal 1967
with a total backlog of work amount
ing to $34,000,000. New business se
cured since the end of our fiscal year
amounts to $7,000,000, bringing our
current backlog to $40,000,000. Our
profit picture for this year is promis
ing We expect to
c o m p l e t e about
$28,00,000 in fiscal
1968 b a s e d o n
s ch e du le d com
pletion dates.
Joseph A. Smith
has been appoint
ed to the new
post of first vice
president and to
the board of di
J. A . S M IT H
rectors. Mr. Smith
joins Bank Building from TRW, Inc.,
where for 12 years he served in the
Systems Group in general manage
ment and financial capacities.

Worldwide News Service
For Mercantile Trust
Mercantile Trust Company N.A., St.
Louis, announces the bond depart
ment’s installation of the new ReuterUltronic Report teleprinter, an inter
national news wire service. The only
bank in Missouri to have this new
service, Mercantile will be receiving
more financial and business news of
an international and domestic scale,
and much quicker than by any pre
viously used wire systems. An event

taking place anywhere in the world
which might affect the bond market,
will be known to Mercantile and sub
sequently, its correspondents within
minutes of the occurrence.
The Reuter-Ultronic Report has a
print-out ratio of 100 words per min
ute, prints significant facts in red ink,
and uses a bell signal to alert the
staff when such pertinent news is be
ing transmitted.

$ 8 0 Million Revolving
Credit Plan Approved
Leasco Data Processing Equipment
Corporation has signed an $80 million
revolving credit with Continental Illi
nois National Bank and Trust Com
pany, Chicago, which is heading a
group of 35 U. S. banks participating
in the agreement.
The new credit, believed to be the
largest arranged to date for a com
puter leasing company, brings to
$131.5 million the total credits made
available to Leasco through partici
pating banks during the past two
years. Under optional provisions of
the agreement, the credit may be ex
panded to $200 million.
In addition to its role in the com
puter leasing industry, the Great
Neck, Long Island firm has expanded
into other data processing service
areas, including software and data
storage and retrieval.

Head International Subsidiary
For Northern Trust
The directors of The Northern
Trust International Banking Corpo
ration, Chicago, announced the ap
pointment of Samuel C. Brown as
vice president and manager of the
new corporation and Werner E. Diehl
as second vice president.
Mr. Brown was previously con
nected with Bank of America’s Inter
national, and Mr. Diehl with the
Chase Manhattan Bank in the inter
national department.
A fully-owned Edge Act subsidiary
of The Northern Trust Company, The
Northern Trust International Bank
ing Corporation is scheduled to open
its offices in July at 90 William Street
in New York City.

Wins Phoenix Award
A major civic honor has been be
stowed on James E. Patrick, vice chair
man of the board of the Valley Na
tional Bank of Arizona, Phoenix.
He is the 1968 recipient of the Dis
tinguished Service Citation of the
Phoenix chapter, National Conference
of Christians and Jews. The presen
tation.

Solve your
international banking problems
this easy way.

Call us.

You begin your international busi
ness with a correspondent banker
He specializes in working with
bankers from your part of the
country. And he really speaks your
language.

Your man at The First knows
just which of our international
banking experts to call to get your
problem an effective, prompt in
ternational solution.
There are plenty of experts to
call in. The First’s big international
banking department in Chicago.
The full service branches in Lon
don and Frankfurt. Our subsidiary

in Beirut. The representative office
in Tokyo. First Chicago Interna
tional Banking Corporation in
New York. And then, over 500
foreign correspondent banks.
This is just one of many ways
the correspondent bankers at The
First can help. When we can help,
just dial Area Code 312,372-0408

The First
National
Bank
o f Chicago

Chicago •London • Frankfurt- Beirut Tokyo
First Chicago International Banking Corporation, New York

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Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1968

ABA Recommends Use
Of Social Security Numbers

The American Bankers Association
announced that it is recommending
to its 13,600 member banks the use of
social security numbers as the basis
of a nationwide personal identification
system.

New Senior Officer For
First National City, N. Y.

v
1

Roy H. Dickerson has been ap
pointed a senior vice president of
First National City Bank.
Mr. Dickerson heads the bank’s spe
cialized i n du s t r i e s division group
which includes the computer systems
and electronics, equipment leasing, ,
and transportation and aerospace de
partments.
Mr. Dickerson joined Citibank in
1954 as a trainee and served in the
western district of the bank’s Nation
al Division from 1955 to 1962. He was ^
promoted to vice president in 1962
when he assumed responsibility for
the aerospace and electronics department in the Specialized Industries Di
vision.

Start Harris Bank Center

FEDERAL

BILL

STRAPS

That's right! Banks and financial institutions who have used “ SteelStrong" Federal Bill Straps continually specify these superb currency
bands in case lots. Constructed of the finest of materials — extra
strong, high quality Kraft stock plus the finest Tapioca gumming —
they offer the maximum in performance and protection. Due to their
trouble-free history, they have become the favorites of tellers, pur
chasing agents, executives and others concerned with the gathering
and protection of currency.
Mid-band design is available in Brown Kraft in the following sizes
and with denominations printed in designating colors: $25 Orange,
$50 Light Blue, $100 Brown, $200 Black, $250 Dark Green, $300
Light Green, $500 Red, $1,000 Dark Blue, $2,000 Orange, $5,000
Purple, Blanks —(No Denomination), Brown Kraft.
Other fine "Steel-Strong" products include Coin Wrappers, Colored
Bill Straps, Pre-Banded Bill Straps, Banding Straps, Shipping Tags,
Lead Seals, Seal Presses, Coin Counters, Coin Packaging Trays, Post
Currency Racks, Coin Storage Trays and Tellers' Moisteners.
For Details on "Steel-Strong" Products Call Your Dealer or Send
Coupon Below.
T h e C . L. D O W N E Y

COMPANY /

HANNIBAL, MISSOURI, DEPT. N

PLEASE SEND FREE DETAILS ON "STEEL-STRONG" COIN HANDLING PRODUCTS TO:
A /s m e _ ___________________________________ __ — _

Title ----------------------------------.

Firm ____________ _____ _______________________________________________________
A ddress _____ ___________________________________________________________

City
AROUND

______________________________ State______________
MONEY

THE

DigitizedNorthwestern
for FRASER Banker, April, 1968
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FINEST

"STEEL-STRONG"

Ground has been broken for the
Harris Trust and Savings Bank’s new
operations center and personal bank
ing facility which will be constructed
at the southwest corner of Monroe
and Franklin Streets in Chicago.
The 15-story structure—housing the
com puter-support and computer-ori
ented operating departments of the
bank—is scheduled for completion in
the last half of 1969.
Each floor will have approximately
27,000 square feet, for a total of 428,000 square feet in the building. Frame:
work will be of reinforced concrete
clad with granite. Windows, which
will be bronze tinted, will be set in
anodized aluminum frames.
The building will house only em
ployees of the Harris Bank. On the
ground floor space will be provided
for walk-in and drive-in personal
banking facilities.

New Chicago Officers
Four new officers have been elected
by the National Boulevard Bank, Chi
cago, according to Irving Seaman, Jr.,
chief executive officer.
Miss Avis Dunlap was named ad
ministrative assistant in the executive
department, Miss Catherine Williams
an assistant cashier in the comptrol
lers department, Alfred J. Fonner was
named personnel director in the oper
ations department and Robert T.
Kinder an assistant cashier in the in
vestment department.

Reasonably close to the estimate, you hope. But
you’ve heard of building projects for which final bills
ran way over original estimates. Would you want to
justify this kind of spending to the board or stock
holders? A misleading estimate can cost you more
than money!
No need to gamble, however. There is a preventive
. . . cost estimates guaranteed by Bank Building.
Meaning? When Bank Building completes your proj
ect below estimate, as is often the case, we return
the bulk of the savings to you. And the guaranteed
cost estimate protects you if, for some reason, final
cost exceeds original estimate.
Why can Bank Building guarantee an estimate? Be
cause we assume total responsibility for your proj
ect. We specialize in planning, construction and
equipping of financial institutions that effectively
serve you and your customers. As testimonial . . .
40 per cent of our jobs are for repeat clients. We
apply 54 years’ experience based on more than 4300
jobs. No combination of problems is entirely new
to us. This total responsibility permits us to carry
through from consultation to grand opening with
major economies. And the bulk of your money is
spent where it should be . . . right at home in your
community!
The dividend from our specialized experience is an
estimate likely to be right on the button . . . and
guaranteed to protect you.

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

e s tim a te g u e s s tim a te ...

w h a t w ill
it cost?
First Class
Permit No.
1146
St. Louis, Mo.
BUSINESS REPLY M A IL — No postage necessary if mailed in the United States

Postage will be paid by

OF AMERICA

1130 HAMPTON AVE.. ST. LOUIS, MISSOURI

att. Mr. Earl Klein

63139

e s tim a te g u e s s tim a te ...
w h a t w ill i t cost?
w e 'll te ll you!

Here's one reason for Bank Building's accuracy. We can!
guarantee a cost estimate because of our vast cumulation
of constantly updated cost records of labor and materials!
used on jobs from coast to coast. Other major contributing!
factors are: 1. Our estimating department of 20, many ofl
whom have served more than a decade in this group. 2.1
With detailed plans and samples of materials* a Bartkl
Building consultant reviews the estimate with the client,!
so that misunderstandings are avoided. 3. and 4. The!
finished project looks as planned and final cost is within!
dollars of estimate, as for First National Bank of McMinn!
County, Athens, Tenn. Don’t get into a costly bind because!
of faulty estimating. We can help. Send for free brochure|
“The truth about new quarters costs.”
^

■

Estimating Department. Bank Building Corporation

Consultation.

First National Bank of M cM inn County. Athens. Tenn.

Send for brochure—"The truth about new quarters costs."

On or about

we contemplate :
(date)

□

new building

□

Please send free brochure "The truth about new quarters cost."

new fixtures

□

modernized quarters

□

Please send a Bank Building consultant to discuss our project with us. W e understand
there is no obligation involved.

Name

high rise

Title

Institution

Address

State

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

IN -3

First National Bank of M cM inn County. Athens, Tenn.

Name Division Heads
For Security First, L. A.
Two major division heads have
been appointed by the Security First
National Bank, Los Angeles.
Kenneth C. Hawkins, Jr., vice presi
dent, will head the bank’s national
banking department.
Richard J. Flamson III has been
placed in charge of the bank’s inter
national banking department.
In assuming his new administrative
post, Mr. Hawkins will continue to be
responsible for the activities of the
e n t e r t a i n m e n t industry division,
which becomes a division of the na
tional banking department.

K. C. H A W K I N S , JR.

Mr. Flamson,
bank’s National
joined Security
that same year
vice president.

R. J. F L A M S O N

elected vice president and division ad
ministrator, National Banking Depart
ment.
Clifford A. Morton and Arthur L.
Nelson have been appointed vice pres
idents with the head office Electronic
Data Processing Department.

New High in Crop Hail
Max D. Rutledge, president of Farm
ers Mutual Hail Insurance Company,
Des Moines, reported at the firm’s
75th annual meeting that an all-time
high of $440 million of crop hail in

surance in force was reached in 1967.
Mr. Rutledge also reported that as
sets were increased to over $22.2 mil
lion.
Premiums written increased from
$23 million to $27.2 million, an 18 per
cent gain for the year. Surplus to
policyholders was increased to over
$11.5 million. The company writes
crop hail insurance in 10 midwestern
states, and is ranked first among all
insurance companies in the nation
which write this type of insurance
coverage.

III

formerly head of the
Banking Department,
Bank in 1955 and in
was named assistant

Following assignments in both the
National and Metropolitan banking
departments, he was elected vice pres
ident and head of the Installment
Loan Division in 1962. In 1965 he was

/ 'amatan i t y A w a n /

W ho paid a billion dollars
for our institutional bonds?
Since 1913, we have underwritten and sold more than a billion
dollars worth of institutional bonds. Who bought them? In
dividual investors, trust companies, credit unions, pension
and insurance funds. And hundreds of banks! Right now,
many of our institutional bond issues are yielding as high as
7%. They are well worth your looking into . . . for your own
portfolios . . . or for your customers.

IRVING SEAMAN, JR., chief executive
officer of the National Boulevard Bank of
Chicago, right, displays the Chairman’s
Award presented to him by the Better
Business Bureau of Metropolitan Chicago
for distinguished community service. Mr.
Seaman is treasurer and a member of the
Bureau’s executive committee. Earl Lind,
president of the Bureau, admires the
plaque.

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

B. C. ZIEGLER and COMPANY
West Bend, Wisconsin 53095 * 414-334-5521
BRANCH OFFICES:
New York • Chicago • St. Louis • San Francisco • Minneapolis • Milwaukee * Toledo
Memphis • Dubuque • Appleton • Green Bay • Madison • Fond du Lac • Kenosha
Fort Atkinson • La Crosse * Wausau • Rockford • Springfield • Peoria

Northwestern Banker, April, 1969

H arris fía ah Nantes 11. #*'. M u rra y
ILLIAM F. MURRAY, the 55W
year-old newly-elected president
of Harris Trust and Savings Bank,
Chicago, has been with the bank since
1934, following graduation from the
University of Illinois. As announced
earlier, Mr. Murray’s election took
place at the board of directors’ meet
ing March 13. He
succeeds the late
A. Newell Fumpf,
who died sudden
ly in February of
a hear t attack.
K e n n e t h V.
Z w i e n e r contin
u e s as b o a r d
c h a ir m an a n d
c h i e f executive
officer.
At the s a m e
board meeting, Mr. Murray was elect
ed a director, along with James W.
Button, vice president in charge of
merchandising at Sears, Roebuck &
Company.
Mr. Murray started in the bank as a
trainee. Upon return from Navy serv
ice after World War II, he joined the
Harris banking department. From
1951 to 1964 he was a commercial
banking officer, administering a loan

division responsible for utility and oil
credits and general business in the
western United States.
In 1964, he was named group execu
tive of the national banking group
and in 1967 became head of the bank
ing department, the depository and
credit arm of Illinois’ third largest
bank and the nation’s 25th largest
bank.

American Express Expands
International Banking
Significant new emphasis on inter
national banking operations was con
firmed by American Express Compa
ny with the announcement in New
York that its principal overseas sub
sidiary will conduct business under
the name of American Express Inter
national Banking Corporation.
Commenting on the name change,
Howard L. Clark, president, said, “We
feel the new name, American Express
International Banking Corporation,
more accurately reflects what has be
come the principal business activity
of the subsidiary, formerly known as
The American Express Company, In
corporated.”
The company’s annual report for
1967 indicates that on December 31 of

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Northwestern
Banker, April, 1968
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INSURANCE COMPANY

A Mutual Company— William C. Safford, President

last year American Express Interna V
tional Banking Corporation and its
subsidiaries held customers’ deposits
and credit balances of $540,473,000,
and, at the year’s end, administered a
loan portfolio of $322,545,000 in 44 of
fices in 16 countries outside the United
States.

B of A Marketing Officer

Bank of America has named Vice
President C. D. (Denny) Pease ad
ministrative marketing officer in the
San Francisco head office.
Mr. Pease had specialized in mar
keting research involving all aspects
of international banking in Southern
California since joining the bank last
May. In addition to international ac
tivities, he will now be concerned
with the bank’s 80-plus domestic serv
ices.
Before joining Bank of America, the
Bloomington, 111., native was manager
of marketing operations for the San
Diego Unified Port District for three
years. A veteran of 17 years of mar
keting experience, he previously held
key posts with General Electric Com
pany and North American Van Lines.

American Express Names
Credit Card Marketing V.P.
Francis M. Beudert has been ap
pointed to the newly-created position Y*'
of vice president-marketing services
of the American Express Company’s
credit card division, according to an
announcement by Howard L. Clark,
president.
Before joining American Express
Credit Card, Mr. Beudert was with
Mead Johnson and Company, where
he held posts as vice president of
sales and vice president of marketing.
Since October, 1964, he had served as
president of Mead Johnson Nutritionals, one of the company’s divisions.

Ozark Net Increases
Ozark Air Lines has released final
audited figures for 1967, showing a net
income for the year of $1,341,614, ac
cording to Thomas L. Grace, presi
dent.
Figures for 1967 show operating
revenues of $35,899,635, and a $1,751,066 gain on sales of aircraft. Operat
ing expenses for the period were $35,907,178. These compare to $30,311,785
in revenues, $28,932,406 in expenses,
and $904,157 in net income for 1966.
Aircraft sales gains in 1966 were $364,945.
Ozark has been recommended for a
non-stop route between St. Louis and
Dallas by the Civil A e r o n a u t i c s
Board’s Bureau of Operating Rights.

THE LAWRENCE SYSTEM
IS PROTECTION
F or 55 years Law rence W arehouse C om pany has been the leader in supplying collateral

protection services to lenders.
Perhaps this leadership results from our experience protecting collateral values in excess o f
$22 billion against which loans have been made to nearly 2 7 ,0 0 0 corporate borrowers.
Or it could com e from the variety and flexibility o f our collateral protection services: Field
Warehousing, Certified A ccou n ts R eceivable Service, Certified Inventory Control,
D ocum ent C ontrol Service and Secured Distribution.®
Then again it may be due to the protection afforded by our insurance coverage, which is
the broadest in the industry.
A n d it might stem from the up-to-the-minute reports from our Data Processing Center.
But most probably our leadership in protection reflects a com bination o f all these features, which
we call the Law rence System, operating through 40 offices serving the United States, Canada
and the Caribbean. D oesn't the collateral on which you base your loans deserve
the protection o f the L aw rence System? W e’ll gladly furnish you with com plete details.

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C E R T IF I E D C O L L A T E R A L P R O TE C TIO N SER V IC E S
N A T IO N W ID E

FI EL D

W A R E H O U S IN G

S IN C E

1 9 1 3 |J |j|^ j

37 Drumm Street, SAN FRANCISCO
122 East 42nd Street, NEW YORK • 100 North La Salle Street, CHICAGO
OFFICES IN PRINCIPAL CITIES

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

Northwestern Banker, April, 1968

16
A

Y-

(b&ah^ Qjohrv <B. WL. (plaoL:

jority of the nation’s commercial bankers, regard
less of the size of their banks.

Executive Vice President, Chase Manhattan Bank,
N. A., New York, New York.

“ The changing character of commercial banking
promises to make the industry a continuing and
exciting growth area for the future.”
This is the way you described the future outlook
for the banking business in a recent presentation
to the Boston Security Analysts Society.
You noted that bank earnings have shown a long
term growth rate of close to 8 per cent annually.
What’s more the growth in bank earnings has been
more stable than over-all corporate profits. Even
in periods when corporate profits leveled off or
declined, earnings of the nation’s commercial banks
generally continued to move ahead. You added that
major industry trends pointed to even better per
formance in the years ahead.
Explaining your generally optimistic outlook you
said:
“ Banking has shifted from a low-volume, highmarkup operation to a high-volume, low-markup
business. A larger portion of our money comes
from time deposits upon which we pay interest.
This has trimmed our markup. But this same time
money has provided us with much larger resources
which we have been able to use to good advantage
in higher-yielding loans and other assets.
“ As a low-markup business, banking has had to
develop a keener cost-consciousness than ever be
fore. With the help of computers, banks are be
ginning to get a much better focus on the cost and
profitability of their services. They are working
out new approaches to compensation which, over
the long run, should prove more equitable to the
customer and more profitable to the banks.
“ As a high-volume business, intent on increas
ing this volume, banking has deepened its penetra
tion of additional markets to broaden the base of
its earnings. For example, since 1960, commercial
banks have increased their share of the market in
installment credit from 39 to 44 per cent. In auto
loans, they have moved up from 46 to 58 per cent
of the total. They are also making strong inroads
into the mortgage loan market.”
Your comments should be refreshing to a ma-

Digitized Northwestern
for FRASER
Banker, April, 1968
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(DmA. (Û Æ cwl fi. ÇamfL.:

Comptroller of the Currency
Washington, D. C.

Speaking before a recent meeting of the Florida
Bankers Association, you commented on the sub
ject of branch banking and the increased attention
that it has received in the past few years. You
stated :
“ Much of the discussion of branch banking has
been diverted from the basic issues of economy
and efficiency because of the fear by many smaller
banks that more liberal branching would lead to
their extinction, and because of the differences in
branching laws among the various states.”
You continued by saying, “ Nothing in our expe
rience would confirm the fears of smaller banks.
Indeed, the record shows that the restriction of
branching, where there are market deficiencies,
encourages the chartering of new banks, the for
mation of branching substitutes, and the growth
of non-bank financial institutions.”
Your term “ market deficiency” can be inter
preted in a number of ways . . . and independent
banks are justified in having some fears about
this. Most independents that we know are sympa
thetic with the needs of the larger city banks to
serve their suburban customers. Authorization of
parking lot offices in a number of midwestern states
is testimony to this.
At the other extreme, you have the Federal Home
Loan Bank Board approving the use of mobile
units by a Des Moines savings and loan association
to serve three surrounding towns (up to 50 miles
away) where five banks operate. Any reasonable
analysis would show that there was no “ market
deficiency.”
We feel that you are doing a good job in help
ing to reshape the pattern of public controls so
that new avenues for the performance of financial
services that banks may safely pursue are held
open. In reshaping the pattern, however, we hope
that you will thoroughly investigate the “ market
deficiencies” before placing your stamp of approval
on branches.

not making waves
you’re standing
still
At Manufacturers Hanover, we know that banking is one of the
most dynamic businesses in the world. And that’s the nice, quieting
thing about our National Division officers. They’re disturbing.
OUR WAVEMAKERS IN THE MID-WESTERN STATES:

G e o rg e R. H a s la m , Jo hn J. Evans, John F. K in g, G e o rg e R. B e n n e t t , C a r l G. Carls on,
N a t h a n ie l S .H o w e , Jr., J o sep h Sn y d er, F r e d e r ic J. Sears, R u s s e ll H. E ic h m a n .
. .

. it’s good to have a great bank behind you

J M A N U FA C TU R E R S H A N O V E R TRUST
Member Federal Deposit Insurance Corporation

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

Northwestern Banker, April, 1968

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

London
isn’t so foggy
(when you know the right people)

As far as your customers are con clude Caracas in this list; our office
cerned, you’ve got a man in London there will open early this year.) An
who’s a native. In fact, almost 100 international bank in New York,
and, of course, a major bank in
of them.
And you also have two complete, Chicago, as well as equity interests
full-service branch banks at your in financial institutions in several
other countries. (In addition to cor
disposal.
But your worldliness doesn’t stop respondent connections throughout
the world.)
in London.
International finance becomes a
You’ve got branches in Tokyo and
Osaka, representative offices in lot easier, when you know the right
Brussels, Madrid, Manila, Mexico people.
And you do. The people at
City, Milan and Zurich. (Please in

C O N T IN E N T A L B A N K
Continental Illinois National Bank and Trust Company of Chicago
Continental Bank International, N ew Y ork
Branches: London • Osaka • Tokyo
Representative Offices: Brussels • Madrid • Manila • Mexico City • Milan • Zurich
Member Federal Deposit Insurance Corporation

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

©C.I.N.B. 1967

Northwestern Banker, April, 1968

New Administrative Officer
C. Robert Barton has been elected
administrative vice president and
chief administrative officer of Old Se
curity Life Insurance Company, Kan
sas City, accord
ing to Paul Ham
ilton, Jr., presi
dent and c h i e f
executive officer.
Mr. B a r t o n
joined old Secu
r it y in March,
196 7, w i t h 10
years’ life insur
ance experience.
Prior to his pro
C. R. B A R T O N
m o t i o n he was
vice president and assistant to the
president.
Old Security Life Insurance Com
pany is a subsidiary of Interstate Se
curities Company. The life company
is licensed to do business in 49 states
and the District of Columbia. Execu
tive offices are located at 3430 Broad
way, Kansas City, Mo.

Named by Banking School

*Wkat we really do is try to
make more credit available

A R E Y O U R E J E C T I N G S O M E L O A N B U S I N E S S for
lack of acceptable collateral? Marketable inventory covered by
o u r Field W a r e h o u s e R e c e ip t s can o f te n s u p p ly th e v e ry
security you need.
T A K E A G O O D H A R D L O O K at how easy it is to check
the precise value of this collateral at all tim es. Our Univactabulated Stock and Value Reports provide daily accounting of
all warehouse activities. Inventories are physically checked by
our staff a m inim um of ten tim es a year.
C A L L I N O U R R E P R E S E N T A T I V E — let him h e lp you
“ free u p ’’ additional collateral for custom er loans, make use
of his practical suggestions, facilities and services.

Specify“ PROTECTION" insist on

Promoted at New York Bank

NEW YORK TERMINAL WAREHOUSE COMPANY
n u

tuu

25 South W illia m S tre e t
N e w Y o rk , N . Y. 1 00 04

O P E R A T I N G

O F F I C E S

Northwestern
Banker. April, 1968
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

P R I N C I P A L

Dr. Lewis E. Davids, the Robert E.
Lee Hill professor of bank manage
ment at the University of Missouri,
Columbia, has been named a member
of the 25-man Faculty of the Assembliies of the Foundation of the South
western Graduate School of Banking
at Southern Methodist University.
Dr. Davids is well known to readers
of the N orthwestern B anker for his
monthly feature article that has been
appearing in this magazine the past
year and a half.
The purposes of the assemblies are
to increase the understanding of di
rectors of banks as to how they may
serve their banks, to indicate ways a
director can best serve as a bank rep
resentative in the community, to pro
vide better understanding of and re
spect for bank management’s function
and to acquaint the director more
fully with issues of critical interest to
his bank and banking.
Programs of the assemblies have
been scheduled at Hot Springs, Ark.,
in May and Colorado Springs, Colo.,
in September.

C I T I E S

Ralph W. Hemminger and Malcolm
A. Stevenson have been elected sen
ior vice presidents of Bankers Trust
Company, New York. The announce
ment was made by William H. Moore,
chairman of the board.
Mr. Hemminger is in charge of
Bankers Trust’s employee benefit de
partment, and Mr. Stevenson heads
the trust department.

Want to
get the
most out of
every roll of
microfilm?

There’s more than just film involved
when you rely on R ecordak Microfilm.
Of course, you get uniform film quality.
You wouldn’t expect less from Kodak.
But what really makes the difference is
what we call “ Total Systems Responsi
bility.” Responsibility backed by forty
years o f microfilm systems experience!
For example, your microfilm is proc
essed by Kodak professionals, using the
most up-to-date equipment, techniques,
and controls. Then it is quality-control
inspected to make sure your R ecordak
Microfilmer is operating efficiently . . . is
producing images o f consistently high
quality. And if not, your Kodak service

specialist takes prompt corrective action.
Recordak systems specialists are also
available to assist in analyzing your
bank’s microfilming operations . . . and
to help you achieve maximum efficiency.
But Total Systems R esponsibility
doesn’t stop there. Say your transit let
ters should ever be lost or destroyed.
Kodak will make facsimile prints of miss
ing checks from your microfilm records.
At no extra charge!
For more information on Total Sys
tems Responsibility and how it helps your
bank, contact: Eastman Kodak Com
pany, Business Systems Markets Divi
sion, Dept. 0 -4 Rochester, N.Y. 14650.

C C P I ) f]§( Microfilm Systems by Kodak

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

Northwestern Banker, April, 1968

Northern Trust Adds
To Farm Department
Recognizing the growing needs and
importance of modern agriculture,
The Northern Trust Company, Chi
cago, has recently added two men to
its staff of agricultural specialists,
bringing the total number of farm
men in the banking and trust depart
ments to seven.
In the Banking Department, Thom
as W. Walvoord, who holds a bache
lor’s degree in animal science from
Iowa State University, has joined
calling officer Lyle P. Campbell, as-

fr'

—

.....

This Double TT never
stops selling.
It works day and night building good
will and merchandising total services
for this financial institution. It attracts
constant attention, because it employs
the universal appeal of light in action,
while delivering accurate time and
temperature information.
This extra community service is wide
ly appreciated by all age groups. It is
functionally symbolic of the breadth
of services offered by this progressive
financial institution.
This is just one of over 2,000 AS&I
Double TT time/temperature displays
dependably working for financial institu
tions throughout America. These insti
tutions enjoy our unconditional lifetime
guarantee, implemented by our nation
wide service organization.
Let a Double TT uniquely identify
your firm, and merchandise your serv
ices. Write or call collect for full details.

A M E R I C A N
S I G N
a n d
I N D I C A T O R
Home Office: N. 2310 Fancher Way,
Spokane, Wash. 99206
Area Code 509 KE 5-4251
Offices in New York and Chicago.
Representatives and field
engineers serving every city

Northwestern
Banker, April, 1968
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

L. D . M I L L E R

J. A. S H U T E

sistant cashier, who also holds a de
gree from Iowa State in economics
and agriculture.
Although Mr. Walvoord calls pri
marily in Iowa and Mr. Campbell in
Illinois, they are both available for
consultation in other geographical
areas.
The second agricultural specialist
to join The Northern Trust recently
is Luther D. Miller, now a farm man
ager in the Trust Department. Mr.
Miller graduated from Purdue Uni
versity with a degree in animal sci
ence and was active in farm manage
ment work and the livestock business
in Fort Dodge, Iowa, for the past six
years. Prior to that, he was livestock
superintendent at the Adams ranch
in Odebolt, Iowa, for 10 years. (The
Adams ranch is the largest singlyowned farm in Iowa with 7,200 acres
in a single unit.)

L. P. C A M P B E L L

T. W . W A LV O O R D

With the addition of Mr. Miller, The
Northern Trust’s Farm Management
staff now numbers five specialists.
The division is headed by James A.
Shute, second vice president, who
holds a Ph.D. in agricultural econom- }-s
ics from the University of Minnesota
and is a former professor at Purdue
University. The three other farm man
agers all hold degrees in agricultural
economics: James M. Conner, assistant secretary, from Purdue Univer
sity; Allen H. Cummins, assistant sec
retary, from Purdue University, and
Loren A. Backhaus, farm manager, -A
from Iowa State.
Collectively, these men manage
over 90,000 acres of farm land in trust
and for individual farm management
customers. The N o r t h e r n Trust’s y
Farm Management program features
the use of a computer to determine
the optional use of resources for par
ticular farm properties in order to
maximize farm profits.

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SALUTE WEEK—Pictured here is Miss
Downtown St. Louis of 1968, Carolyn Del
bert, a secretary in Mercantile Tr. Co.’s
correspondent banking dept, in St. Louis.
Miss Delbert appeared with Orville R.
Goerger, v.p. and dir. of public relations,
and Herman Orlick (right), v.p. and cash
ier, as she greeted the public and dis
tributed free Salute Week souvenirs.
The crowning of Miss Downtown is an
annual event during Salute to Women *
Who Work Week, sponsored by Downtown,
St. Louis, Inc.

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Red S h!ebrand-name Pr0‘
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major bortection to V
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rowers. ,n
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, April, J96S

Heller Reports Record
Results in 1967
Walter E. Heller & Company re
ported in Chicago record results for
the year ended December 31, 1967,
with per common share earnings up
14 per cent, finance volume of 9.3 per
cent, and manu
facturing volume
up 17 per cent.
N o r m a n B.
Schreiber, pr es i
dent and chief exe c u t i v e officer,
said that after
a d j u s t m e n t s to
reflect a recent
a c q u i s i t i o n net
income was $12,N. B. S C H R E IB E R
228,414 vs. $10,962,383 in 1966. After preferred divi
dend requirements, earnings per com
mon share were $1.22 on 8,462,569
shares outstanding as compared with
$1.07 on 8,458,569 shares in 1966, a rise
of 14 per cent.
Mr. Schreiber said that the results
reflect “substantially l ar ger gains
than in recentyears” in both finance
and manufacturing operations. Vol
ume of finance business handled in
1967 was a record $2.9 billion vs. $2.6
billion in 1966, contributing $8,582,241
to net income vs. $7,772,813 in the
prior year period.

Lots of portfolio advisors
look alike, don’t they?
Maybe your circumstances are like everyone else’s? We don’t think
so. Maybe there are stock answers to your investment portfolios?
Again, we don’t think so. In fact, we’re convinced there’s no easy
way in the investment portfolio business.
We don’t believe in look-alike proposals. And we don’t come up
with look-alike results. For example, one of our correspondent banks
increased its net operating earnings by 46.3% the initial year after
our in-depth study. We recommended and the bank bought securi
ties at a discount in order to realize capital gains. Our own bank has
an impressive average of 4.73% pre-tax investment return over the
past eight years, and no losses on securities.
Our recommendations are put together on an individual basis.
After a lot of homework. Piece by piece. With important things like
earning assets, loans, and other investments carefully scrutinized.
Sometimes we recommend extensive adjustments to achieve higher
yields. In every case, we end up with a tailor-made proposal apply
ing to your bank’s specific needs.
Get the full story of our investment portfolio analysis services.
Call Charlie Schoeneberger this week.

N B
B Û

NATIONAL BOULEVARD BANK
OF CHICAGO
WRIGLEY BUILDING • 400-410 N. MICHIGAN AVE.
CHICAGO 60611 • (312) 467-4100 • MEMBER FDIC

Northwestern Banker, April, 1968

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

Sales of manufacturing subsidiaries
totaled a record $81,686,408 as com
pared with $69,839,914 in 1966, Mr.
Schreiber said. Net income from
manufacturing was $3,646,173 vs. $3,189,570 in 1966. These figures, Mr.
Schreiber said, reflect a “pooling of
interests” with full 1967 and 1966 re
sults of Art Metal, Inc., a leading
office f u r n i t u r e manufacturer ac
quired in February, 1968. However,
Mr. Schreiber pointed out that in the
total Heller 1967 per share earnings,
adjusted to reflect the pooling of both
years, “the gain was due overwhelm
ingly to internal growth of existing
Heller units.”
Mr. Schreiber noted that based on
1967 Heller results, and with full con
fidence in the future, the company’s
directors last week raised the annual
dividend rate by 20 per cent to 60
cents per common share.
He also pointed out that there had
been a continuing expansion of inter
national operations in 1967 as the
company opened new factoring sub
sidiaries in Holland and South Africa.
In addition, another new subsidiary
is about to open in Milan, Italy.

r -1

Maybe you can
lick your No. 2
paper handling
problem without
any investment

Bankers tell us that the automation of their demand deposit accounts has solved
their biggest paper handling problem. With that out of the way, many feel that
their Installment Loan System presents the next big opportunity to automate
high volume paper work.
With the hardware, personnel and know-how for demand deposit accounting
available and the system in operation, chances are all that is needed to begin this
conversion are the source documents — MICR encoded Loan Payment Coupons.
And here is where we can be of service.
Without the bank making any additional investment for equipment or rental
charges and without having any internal coupon production problems, we can
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JAMES C. MORRISON
MAIL OR BRING TO

/Le

DELUXE NATIONAL STATE BANK

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DELUXE CHECK PRINTERS, INC.
3440 N. KEDZIE AVE., CHICAGO, ILL. 60618

D E LU X E C H E C K
P R IN T E R S INC.

Please send me com plete details on the
Installm ent Loan Coupon Program

NAME

_________________

STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST

BANK
CITY

STATE

ZIP

Northwestern Banker, April, 1968

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

Kansas City Executive Change

FIFTY-SIXTH ANNUAL REPORT

Three senior management promo
tions and the election of a new direc
tor have been announced by R. Cros
by Kemper, Jr., president of the City
National Bank and Trust Company,
Kansas City.
In the bank’s commercial division
William J. Bolt, Jr., and Carl H.
Schupp, former senior vice presidents,
Y'
were advanced to executive vice presi
dents and Byron G. Thompson of the
bank’s bond department was ad
vanced from vice president to senior
vice president.

DES MOINES
il:

Now Insuring All 5:
Business, Life, Home, Auto, Accident & Sickness
CONDENSED STATEMENT AS OF DECEMBER 31, 1967

ASSETS
Bonds

DIRECTORS

....................................................$5 3,05 8,13 9.30

No bonds owned by the Company have ever been
in default either as to interest or principal.

Stocks — Market Value................... 13,410,386.00
Mortgage Loans — FHA Insured, .
203,240.29
Real Estate — Home and
Branch Office Buildings...............
1,900,369.08
Cash in B a n k s ....................................
5,4 40,736.22
Premiums Receivable —
not past due ..................................
5,6 42,514.74
Interest Accrued and
1,922,904.15
Other Assets ..................................
TOTAL ADMITTED ASSETS . $8 1,578,289.78

RESERVES
Reserve for Claims ............................$3 1,12 8,73 3.00
Funds set aside to pay all incurred losses.

Reserve for Unearned Premiums . . 24,032 ,7 10 .2 0
Funds set aside to return to every policyholder the
unearned premium in event of cancellation.

Reserve for T a x e s ...............

2,0 57,765.02

State and Federal Taxes.

All Other R e s e rv e s .............................

3,6 83,794.67

Funds set aside to pay all anticipated general
expenses incurred but unpaid at year end.

TOTAL RESERVES .................... $60,903,002.89
Guaranty Fund . .$
750,00 0.00
Reserve for
Contingencies
, 1,250,000.00
UNASSIGNED
SURPLUS ___ 18,675,286.89 20,675,286.89
$8 1,578,289.78

ROBB B. KELLEY
President and Treasurer
M. J. WILKINSON
Executive Vice-President
W. Z. PROCTOR
General Counsel
JOHN F. HYNES
Honorary Chairman
W. J. HYNES
Retired Claims Counsel
E. C. BOOTH
Sec.-Treas., Lennox
Industries, Marshalltown
W. HAROLD BRENTON
Chairman, Brenton Banks,
Inc., Des Moines
HJALMAR L. HJERMSTAD
Chairman, Citizens Security
Mutual Insurance Co.,
Red Wing, Minn.
JOHN H. KELLEY, M.D.
Orthopedic Surgeon
Des Moines
WEBSTER M. LEHMANN
Farm Manager,
Des Moines
GEORGE A. MORRELL
Former Director, John
Morrell & Co., Ottumwa
CARL MUELHAUPT
Retired Chairman, Central
Service Co., Des Moines
JOHN D. STODDARD
President, Stoddard Develop
ment Co., Des Moines
R. W. WEITZ
Chairman, Weitz Company,
Inc., Des Moines
R. W. WOOD, M.D.
Director, Newton National
Bank, Newton

EMPLOYERS MUTUAL Casualty Company
Home Office: 210 Seventh Street, Des Moines

SUBSIDIARY COMPANIES
EMPLOYERS
EMCASCO
MODERN LIFE COMPANY
INSURANCE COMPANY

BRANCH AND SERVICE OFFICES COAST TO COAST
Charlotte,

N. C.

Detroit •

Houston

•

Chicago
•

•

Dallas

Jackson,' Miss.

•
•

Davenport, la.
Kansas City, Mo.

Minneapolis •

Oklahoma City •

Omaha •

San Antonio •

Sioux City, la. •

Springfield, Mo. •

Northwestern Banker, April, ] 968

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

Philadelphia •

•

Denver
•

•

Lansing

Des Moines
•

Phoenix, Ariz. •

Vancouver, B.C. •

Milwaukee
St. Louis

Wichita, Kans.

J. B O L T , J R .

B. G. T H O M P S O N

In his new position, Mr. Bolt and
Executive Vice President John E.
Hoffman will serve as co-chairmen of
the bank’s loan and credit division.
Mr. Schupp will continue as head of
the personal banking division and as
a member of the loan and credit divi
sion. In addition, he will assume the
management responsibilities of all
bank properties which include the re
cently acquired Title Building located
at Walnut and Tenth Streets. Mr.
Thompson will become administrative
head of the bond department, succeed
ing F. Donovan Farrell who will re
main with the bank as a consultant.
Completing the management change
of the bond department Vice Presi
dent Harold R. Hollister was named
director of sales.

Dain, Kalman & Quail Names
New York Representatives
James G. Peterson, president of
Dain, Kalman & Quail, Incorporated,
Minneapolis-based r e g io n a l i n v es t
ment banking firm, has announced
the election of Gerald Petrillo as vice
president and director.
Mr. Petrillo will represent DKQ on
the floor of the New York Stock Ex
change handling specialized transac
tions for customers of the firm.
A native of New York, he graduated
from the New York Institute of Fi
nance and was employed by the New
York Stock Exchange for five years.
Since 1955, he has been associated
with LaBranche and Company, a spe
cialists firm on the floor of the New
York Stock Exchange.

is !

Our direct sending operation squeezes
float to a minimum. Most of your de
posit checks are processed and on their
way in less than 12 hours; many in as
little as 2 hours; and none stays with us
longer than 24 hours... and this happens
only when deposits arrive immediately
after a deadline.
Service like this is possible because
we think it worthwhile to gear our tran
sit department’s work forces, computers
and transportation handling procedures
to your needs. We also think’round-theclock, seven days a week processing is
part of those needs. Because we feel this
way, you can be sure there is no faster
collection service anywhere in the nation.
We think it well worth the effort it
takes to be second to none in squeezing
the float from your deposits.
Our correspondents agree. Ask any
of them.

NATIONAL
riser
NATIONAL BANK

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

BANK
of Kansas City, Missouri

M ain Office— 10th & Baltimore
Kansas City, Missouri
Phone 816 B A 1 -2 8 0 0 /T E L E X 04-2210
Member Federal Deposit Insurance Corporation

Independent Hankers Pían
Etaraí Forum In 11 ashini/hni
OUNTRY bankers will gather in
Washington, D. C., next month
for a two-day forum seeking whether
and how rural America can share fair
ly in an increasingly urban society.
The conference April 22-23 at the
Statler Hi lton
Ho t e l is s p o n
sored by the 6,600
m e m b er I n d e
pendent Bankers
A s s o c i a t i o n of
America to focus
a t t e n t i o n on
p r o b l e m s that
confront m o s t
rural c o m m u n i
ties and the farm
P. D U B O IS
er w h o is the
p r i n c i p a l c u s t o m e r of non-urban
banks.

Bankers participating in the pro
gram from the N orthwestern B anker
area include: Stanley R. Barber, presi
dent, Wellman Savings Bank, Well
man, Iowa; Don F. Kirchner, presi
dent, Peoples Trust and Savings
Bank, Riverside, Iowa; Pat DuBois,
president, First State Bank, Sauk Cen
ter, Minn.; Stephen Garst, vice presi
dent, Iowa Savings Bank, Coon Rap
ids, Iowa; H. L. Gerhart, Jr., presi
dent, First National Bank, Newman
Grove, Neb.; V. E. Rossiter, Sr., presi
dent, Bank of Hartington, Nebraska,
and Russell Hanson, executive vice
president, Swift County Bank, Ben

—

son, Minn. Mr. DuBois is chairman
of the conference.
Noted speakers will be Hon. Orville
L. Freeman, secretary of agriculture,
and Rep. Wright Patman of Texas,
chairman of the House Banking and
Currency Committee.

Executive Promotions at
Bankers Trust, N. Y.
Chester Baylis, Jr., 59, has been
elected executive vice president and a
director of Bankers Trust Company,
New York. The announcement was
made by William H. Moore, chairman
of the board.
As head of the banking departments
—national, metropolitan, international
and banking operations—Mr. Baylis is
Bankers Trust’s first executive vice
president in recent years.
As part of the administrative reor
ganization, Mr. Moore announced the
election of Richard M. Bliss, Joseph
R. McLees and Fred J. Leary as sen
ior vice presidents.
Mr. Bliss, the bank’s youngest sen
ior vice president at age 38, succeeds
Mr. Baylis as head of Bankers Inter
national Corporation, Bankers Trust’s
Edge Act subsidiary.
Mr. McLees will head the metropol
itan banking department. Until re
cently, he was in charge of the New
York division in the national banking
department of Bankers Trust.
Mr. Leary, who was previously in

48th Y ea r

—

THE CROP HAIL PROTECTION
FARMERS PREFER
STATEMENT OF CONDITION At Close of Business December o l, 1967

ASSETS
U. S. Government Bonds ............................................... $2,000,769.38
Other Bonds .................................................................... 1,706,305.74
Stocks
...............................................................................
170,610.00
Accrued interest, etc........................................................
22,180.71
Cash in Banks and Home Office.................................
317,555.73
Total admitted assets ...........................................$4,217,421.56

LIABILITIES
Reserve for Federal & State Taxes ....................................................... $
80,263.26
Other Liabilities ............................................................................................
3,188.24
Total Liabilities ................................................................................... $
83,451.50
Surplus to Policyholders .........................................
$4,133,970.06
$4,217,421.56 $4,217,421.56
Securities carried at $390,000.00 in above statementare deposited with public
authorities as required by law.

SQUARE DEAL INSURANCE COMPANY
DES MOINES, IOWA 50308

Northwestern Banker, April, 1968

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

luiucii

charge of the bank’s western division,
now heads the national banking de
partment.

End Antitrust Suit
Through Consent Decree
The Department of Justice and Mer
cantile Trust Company, NA, St. Louis,
Missouri’s largest bank, has settled
the two and a half year-old antitrust
suit against the bank’s merger of Se
curity Trust Company.
In a proposal consent decree filed
with U. S. District Judge Ray W.
Harper one week before trial of the
suit was scheduled to open, the $1 bil
lion-deposit bank agreed to put up $1.5
million as the initial capital for a new
Security Bank and Trust Company,
and to refrain from mergers or acqui
sitions in the St. Louis area for five
years.
The combined capital and surplus of
Mercantile is $60 million.
The stock in the proposed new bank
would be distributed pro rata to pres
ent Mercantile shareholders. How
ever officers and directors of Mercan
tile are precluded from owning more
than one-fourth per cent of the new
bank stock.
Mercantile also agreed to provide a
board of five “mutually satisfactory”
directors and “management personnel
and staff” for the new institution.
Mercantile agreed to provide a $500,000 deposit — half demand and half
time at 2 per cent—until other depos
its of the new bank reach $5 million.
In addition, the Old Security Trust
Company building, which since the
merger in July, 1965, has been used as
Mercantile’s operations center, will
be turned over to the new bank.
Mercantile also consented to pro
vide loan participations “if requested”
to the new bank at any time within
the first three years of its operation.
If the consent decree is accepted by
Judge Harper—this is almost a cer
tainty—and the new bank is chartered
by state officials, it will be the first
time the Justice Department has ef
fected even a partial rebirth of a
merged bank following an antitrust
challenge to a merger.

Name Interbank Executive
Edward E. Bontems has been elect
ed president of Interbank Card Asso
ciation. The association provides its
charge and credit services for 6,000,000 card holders and 131,000 partici
pating merchants.
Mr. Bontems, a former vice presi
dent of United California Bank in Los
Angeles, became Interbank’s first full
time paid executive.

IF YOUR BANK NEEDS EXCEPTIONAL SERVICE
FOR CUSTOMERS WHO TRADE ABROAD IN TEXTILES
YOU HAVE A FRIEND AT CHASE MANHATTAN
THE BANK WITH THE W IDE WORLD REACH
Chase Manhattan offers you the
facilities, technical expertise and local
know-how o f our multinational
network of banking offices,
representative offices, associated banks and
correspondent banks the world over.
Your relationship with Chase’s multinational
network will enable you to go to work for your
customers at the precise time and place they choose.
You gain for your customers the value o f our
long and close association with key local bankers,
leading industrialists and government agencies
in trading centers throughout the world.
Working with Chase, the world’s number-one
correspondent bank, you can quickly provide full
information on the special problems and advantages
accruing from any international transaction.
Whenever and wherever your customers choose
to do business, you’ll find you have a friend
at Chase Manhattan.

THE CHASE M ANHATTAN BANK
N .A ./ 1 Chase Manhattan Plaza, N.Y., N.Y. 10015

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

Member FDIC

The Investm ent Outlook
HE volume of funds to be raised
in the credit markets in 1968 is
T
projected to reach a record $96 bil

THIS
BUSINESS
OF
AGRICULTURE
By Forest L. Goetsch
Senior Vice-President
Doane Agricultural Service Inc.
Compare the size o f individual
farm loans to, say ten years
ago. N ote y o u r b a n k ’ s in
creased involvement.
Agricultural earnings will av
erage higher in the next five
years than in the past decade.
Farm input costs will rise.
Farm ers will make m ore fi
nancial commitments . . . will
use more banking facilities to
c a r r y on a sou n d b u sin ess
enterprise.
Y our agricultural community
could become the fastest grow
ing area fo r your new busi
ness.
W hatever program you de
velop to cultivate farm busi
ness, “ Farm ing fo r Profit” ,
Doane’s special service fo r
banks, is a big help. Y et it
costs so little.
I would like to send you a
brochure that explains this
service from our Bank Serv
ice Department.
I believe you will find it o f
fers challenging possibilities.
W rite or call me collect.
Forest L. Goetsch

D O AN E
A g ricu ltu ra l Service Inc.
8900 Manchester, St. Louis, Mo. 63144
Phone 314-968-1000

Northwestern Banker, April, 1968

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

lion, nearly 12 per cent higher than
the $86 billion estimated for last year,
according to “The Investment Out
look for 1968” released last month by
Bankers Trust Company, New York.
While the amount of new corporate
bond issues is expected to be consid
erably smaller this year than last, the
financing demands of the Federal
Government sector are seen as soar
ing to the largest total since World
War II.
“The Investment Outlook” is an an
nual appraisal of the prospects for the
credit markets published by the Bank
ers Trust economics department and
was prepared under the direction of
Dr. Sally S. Ronk, associate economist.
The department is headed by Dr. Roy
L. Reierson, senior vice president and
chief economist.
The study projects the gross nation
al product at $846 billion in 1968,
which is 7% per cent above last year’s
total. It also assumes no more than
a relatively moderate step-up in the
military commitment in Southeast
Asia, and makes no allowance for the
imposition of an income tax surcharge
during 1968.
On these assumptions, the aggre
gate amount of credit to be raised for
all purposes except financing the Fed
eral Government and its agencies in
1968 is placed at some $77 billion,
about $1% billion less than in 1967.
The net volume of funds raised
through U. S. Government and agen
cy securities (including participation
certificates) is projected at $19 bil
lion, compared with $7 billion in 1967.
Even if a tax increase should belated
ly be enacted, in response to an esca
lation of military expenditures, the
volume of Treasury financing in 1968
will still be huge.
The flow of savings, on the other
hand, was exceptionally high last
year and is likely to be smaller in
1968. However, since the savings and
loan associations, in particular, took
steps to build up their liquidity in
1967, the savings institutions this year
should be in a position to supply the
market with about the same $37 bil
lion of funds as last year, despite the
anticipated slowdown in saving.
Also, other investor groups, includ
ing business corporations, are seen as
adding substantially more, on balance,
to their holdings of credit instru
ments than in 1967—$21 billion, as
against last year’s $16 billion.

Nevertheless, the Bankers Trust
economists point out that, if the cred
it markets are to continue function
ing effectively, it will still be neces
sary for commercial bank credit un
der these assumptions to expand by
nearly as large an amount as the
$35% billion of last year. An increase
of $34 billion, they say, would not
imply an unduly generous credit pol
icy and appears consistent with a
tightening of credit by the Federal
Reserve.
Implications for Interest Rates

According to the bank’s projections,
unless the Federal Reserve permits a
greater expansion in commercial bank
credit than already assumed, the Fed
eral Government will need to place
some $6 billion of Treasury and agen
cy securities with individuals and
other residual investors.
Moreover, since the Treasury is
sues will be predominantly of short
maturities, it is believed reasonable to
expect upward pressures in the gov
ernment securities market and upon
money market rates in general.
The expectation of reduced buying
of municipals by the commercial
banks in 1968 may be interpreted as
heralding a continuation of high to
rising yields in this sector of the mar
ket, states the Bankers Trust report.
In the corporate market, however,
the bank economists anticipate a siz
able reduction in the volume of new
bond offerings, which may well lead
to some easing of pressures.
It would not be surprising, they
conclude, to see corporate bond yields
moving within a fairly level range
and possibly even—should some of the
market’s fears prove to be exagger
ated—along a declining trend.

Valley National Promotions
T w o administrative appointments
in the home office headquarters of the
Valley National Bank, Phoenix, have
been announced by President Earl L.
Bimson.
Tom L. Larsen, assistant vice presi
dent, has been assigned to the bank
administration division as administra
tive assistant to the president. His
major responsibility will be to coor
dinate the marketing activities of the
bank.
At the same time, J. Daniel Roark
has been assigned to the administratitve staff of the home office division
manager, John Baldwin. An assistant
cashier, he moves from the credit an
alysis department.

Heller reports a record year
1966

1967

Earned per common share..............
Finance volume..................................
Net income..........................................
Income from finance operations...
Income from manufacturing...........

..$ 1 .2 2
.. $2.9 Billion
..$ 1 2 ,2 2 8 ,4 1 4
. . $ 8 ,5 8 2,2 4 1
. . $ 3 ,6 4 6,1 7 3

$1.07
$2.6 Billion
$ 10 ,96 2 ,38 3
$ 7,772,813
$ 3 ,1 8 9,5 7 0

% Change

+
+
+
+
+

14.0%
9.3%
11.5%
10.4%
14.3%

and a 20% increase in the dividend rate
The first quarterly dividend on common stock at the 15 cent rate will be payable on March 31, 1968,
to stockholders of record March 15th.

WALTER E. HELLER & COMPANY and Subsidiaries
Financial Statement as of December 31, 1967
ASSETS

LIABILITIES

Cash............................................... $ 56,407,515
Receivables................................... $669,834,327
Less:
Balances withheld $127,457,768
Unearned discounts 19,749,806
Reserve for losses..8,153,843 155,361,417
Net receivables..............................$514,472,910
Prepaids, investments in
manufacturing subsidiaries, etc... 37,398,910
$608,279,335

Short-term notes payable............ $244,303,020
Accounts payable, including taxes 51,928,856
Long-term notes payable............. 140,064,000
CAPITAL FUNDS

Long-term
subordinated notes $63,792,000
Capital stock and
surplus................ 108,191,459 171,983,459
$608,279,335

COMMON STOCK

1967

1966

Earned per share
Dividends per share
Book value per share
Number of stockholders
Number of shares outstanding

1.22

1.07
.50
6.84
10,804
8,458,509

.50
7.67
12,279
8,462,569

Inco m e and c o m m on stock data re fle c t the acq uisition o f A rt M e ta l-K n o ll Corp. on a “ p o o lin g -o f-in te re s ts ” basis.

These charts illustrate the growth of the Com
pany for the past ten years. The year 1967 was
most rewarding and significant as earnings and
volume of business rose to unprecedented levels
and the ground work was completed for the larg
est acquisition in the Company’s history.

1958

1959

1960

*961

1962

1963

1964

1965

1966

1967

A copy of our annual report will be mailed upon
request to Mr. Lawrence R. Foerster, Vice Presi
dent and Treasurer.

W alter E. H eller & Com pany
105 West Adams Street, Chicago, Illinois 60690
New York • Boston • Philadelphia • Atlanta • Miami • New Orleans • Dallas • Los Angeles • San Francisco • Portland • San Juan,
P.R. • Brussels • London • Paris • Mainz, West Germany • Utrecht, Holland • Barcelona • Copenhagen • Stockholm • Winnipeg
• Mexico City • Kingston, Jamaica • Johannesburg

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

Northwestern Banker, April, 1968

Hank A d mini stru t ¡ o h
A om inutrs Ear I
ARL L. BIMSON, president of the
Valley National Bank of Phoenix,
E
Ariz., has been nominated to move up
from first vice president to president
of the Bank Ad
ministration In
stitute for the fis
cal y ea r b e g i n
ning July 1.
Nomination by
th e nominations
committee of the
I n s t it u t e ( for
m e r l y NABAC)
is tantamount to
election, which
E. L. B IM S O N
officially t a k e s
place at the annual spring meeting of
the board of directors.
Mr. Bimson, the new president, will
succeed Edward T. Shipley, comptrol
ler of the Wachovia Bank and Trust
Company, Winston-Salem, who will
continue as a member of the board of
directors for two additional years.
Moving up from second vice presi
dent to be the new first vice president
will be William B. Carr, executive vice
president of the Provident National
Bank of Philadelphia.

Named to the second vice president
position, and thus traditionally in line
to become president in two years, is
Charles A. Agemian, executive vice
president of the Chase Manhattan
Bank, N.A., New York, N. Y. Mr.
Agemian is currently in the first year
of a two-year term as a director at
large.

Commerce Executive Shift
Commerce Trust Company, Kansas
City, has announced new assignments
for two of its executives and the addi
tion of a new officer.
Charles E. Shewalter, Jr., senior
vice president, has been placed in
charge of loan administration. Since
joining the bank in 1965 from Arthur
A n d e r s e n and Company, he has
served as controller. In June of 1966
he was elected to the office of senior
vice president and controller.
Donald J. Reynolds, who has been
auditor of the bank, has been named
vice president and controller. He
joined Commerce Trust in 1965, also
coming to the bank from Arthur And
ersen and Company.

c / i bond is a
bond is a bond

...or*is it?
You know there is a difference, and so do we. Finding
the right bond at the right yield requires more than just
mechanical aptitude.
That's why our bond men rely on an intimate know l
edge of money markets, community growth patterns
and municipal developments. They search out the highyield bonds of today that w ill become the well-rated bonds
of tomorrow.
Our people have sound, solid banking backgrounds. That's
w hy we understand your preferences and responsibilities.
We underwrite municipals and Federal National Mortgage
Association Participation Certificates specifically selected to
meet bank requirements. Call Ebin, Robertson today: (612)
339-0501. Ask for Zane Mann, Gerry Clark or Ben Berg.

EBIN,ROBERTSONAND COMPANY, INC.
M em ber M idw est Stock Exchange

•

Correspondents New York and Chicago

527 MARQUETTE • MINNEAPOLIS, MINN. 55402 • TEL: (612) 339-0501

DigitizedNorthwestern
for FRASER Banker, 4p ri/, 1968
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Leonard Noah has joined the bank
as auditor. He received his BBA de
gree at the University of Kansas City
in 1962. He is a member of American
Institute of C.P.A.’s, Missouri Society
of C.P.A.’s, and Bank Administration
Institute. Prior to his joining the
bank, he was with Arthur Andersen
and Company for seven years as audit
manager.

LaSalle Promotions
Three promotions have been an
nounced by the LaSalle National
Bank, Chicago.
Gene W. Brandon has been ad
vanced to assistant vice president.
He is in charge of the conservator
and guardian section of the probate
division in the trust department.
Robert C. Ford, who joined the
bank in 1964, has been named trust
officer. He is a graduate of the Uni- ^
versity of Alabama law school.
John L. Woolworth, who joined the
bank a year ago, has been named a
commercial loan officer.
A

Joins Franklin National;
To Travel Midwest
Franklin National Bank, New York,
announced the appointment of M.
Carlton Hook, Jr., as vice president in
the bank’s national division. Mrs.
H o o k has been %
.
assigned to the
midwestern-west
ern U. S. terri
tory, and he will
hav e his head
quarters at the
bank’s 410 Madi
son Avenue of
fice, New York \
City.
Prior to joining
m . c. H O O K , J R .
Franklin Nation
al, Mr. Hook was vice president in
charge of national accounts and corre- i
spondent banks at Seattle First Na
tional Bank, Seattle, Wash. He had
been with that institution since 1953. ;

Alumnus of Year
Rudolph A. Peterson, president of
the Bank of America and a pioneer of
large scale installment lending, has
been named the University of Cali
fornia’s “Alumnus of the Year” for
1967.
The “Alumnus of the Year” award
is presented annually by the Cali
fornia Alumni Association to a Uni
versity a l umn us who has distin
guished himself, and the University,
through his accomplishments and his ^
contributions to the welfare of man
kind.

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Northwestern Banker, April, 1968

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Old Security offers everyday profits.
A
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ROSS F. FORBIS
Vice President
Sales Manager

WILLIAM E. FELTER
Regional Service
Representative
lowa-Minnesota

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FRED N. COULSON, JR.
Vice President
Oirector of Agencies

JAMES C. GARBER
Assistant Vice President
Utah-WyomingMontana-ldaho

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Annual Bond And Investment Review

Analyzing a Country

B y R . L . JO H A N N E S M A N
V ic e P r e sid e n t
M erca n tile T r u st C o m p a n y
St. L o u is, M isso u r i

OW can I increase our bank
earnings?” is a frequent ques
tion asked by country bankers
today. This question has become more
of a problem to the country banker in
recent years because of the tremen
dous pressure on earnings, due main
ly to the greatly increased cost of
money and rising operating costs.
We feel that a country bank can
help solve these problems and in
crease bank earnings by having its in
vestment portfolio analyzed by its
city correspondent. I will give some
of the philosophy we at Mercantile
use in analyzing a country bank port
folio and show why we feel almost
any country bank would benefit by
having his portfolio analyzed. In our
discussion, we will gear our comments
to banks in the $5-$10 million range;
however, most of what we say here
would be applicable to smaller banks
and to much larger banks.

Investment Services

We have always encouraged coun
try banks to come to us for invest
ment advice, and it is our opinion that

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they do not often enough take advan
tage of the numerous investment serv
ices that their city correspondents pro
vide. Most city banks have fine bond
departments or at least personnel
qualified to analyze a country bank
portfolio.
In a small bank the chief executive
officer allocates most of his time to
loans and to the operations of the
bank. He spends the least amount of
time on the bank’s investment port
folio. The investment portfolio of a
country bank, however, is a major
portion of its total assets, usually
about 40 per cent. We feel that more
time and effort should be spent on the
management of these investment as
sets.
We find that most of the country
banks have little or no formalized in
vestment policy. The banks that do
have an investment policy do not
often enough reappraise their invest
ment policy and adapt it to changing
economic and market conditions. This
should be done just as lending prac
tices are altered and modified to meet

an increasingly complex and growing
economy.
Since many of the country bankers
seem to lack an all around knowledge
of the proper management of an in
vestment p o r tfo lio , we encourage
them to go to people who specialize
in just this particular phase of bank
ing. Most city banks encourage their
correspondents to take advantage of
an in v e s tm e n t portfolio analysis,
which is done without a fee and as a
correspondent bank service.
Once we have received a request
from the country banker to analyze
his bank’s portfolio, we ask him for
the following information: We want
to see a copy of his latest statement
of condition, as well as his annual
earnings report. We need a copy of
his portfolio with the date of purchase
and amortized cost of investments.
Upon receiving this information, we
prepare some statistics such as, com
paring his bank with other compar
able banks; a profit and loss statement
ANALYZING PORTFOLIO . . .

(Turn to page 48, please)
Northwestern Banker, April, 1968

■ ABOUT THE AUTHOR— Gay P. Gervin
graduated with honors from Vassar Col
lege, where she received an A.B. degree.
She was elected to Phi Beta Kappa and
also was awarded a Marshall Scholarship
by the British Government for graduate
study anywhere in the British Common
wealth. She chose to study at Oxford,
where she received B.A. and M.A. degrees.
She then entered banking in Philadelphia,
becoming an investment analyst specializ
ing in bonds for use in bank portfolios, and
is now continuing in this investment area
at Studley, Shupert & Company, Inc.

HE present period of high inter
est rates confronts bank portfolio
managers with the maximum
challenge. There are serious prob
lems that must be overcome if un
wanted losses are to be avoided, and
yet there also are attractive opportuni
ties inherent in the situation.
Liquidity is apt to be a major con
cern for many commercial banks dur
ing this period even though it did not
prove to be a source of difficulty
throughout most of 1967, despite the
trend toward higher interest rates
which became apparent in the second
quarter. Witness that banks increased
their portfolios of commercial loans
and investments at an annual rate in
excess of 13 per cent in the first eight
months of 1967.
It must be noted, however, that an
exceptional combination of circum
stances existed and that this was re
sponsible for the absence of any pres
sure on liquidity. The rise in yields
was attributable to a heavy calendar,
rather than to a substantial loan de
mand. It was not accompanied, as is
usually the case, by a tightening of
credit. Instead, the policy of the Fed
eral Reserve Board remained relative
ly liberal in response to symptoms of

economic sluggishness and in the vain
expectation of more stringent fiscal
measures.
The exceptional combination of cir
cumstances was temporary, and was
terminated by November, 1967, when
the money managers were compelled
to adopt a less permissive stance to
safeguard the value of the dollar and
curb inflationary excesses. This was
signalled initially by a rise in the dis
count rate, heralding a state of affairs
more typical of a period of high inter
est rates.
In the opening weeks of 1968, com
mercial banks found that funds avail
able for lending and investing were
restricted by increased reserve re
quirements against demand deposits,
as well as by open market operations.
Moreover, it is anticipated that addi
tional pressure upon liquid resources
will arise from increased loan demand
and, so long as the statutory restric
tions imposed by Regulation Q remain
in force, from disintermediation (i.e.,
the withdrawal of time and savings
deposits in pursuit of higher yields
elsewhere in the money markets.)
Building Short-Term Resources

At Studley, Shupert & Company,
Inc., of Philadelphia, we hold that in
sofar as liquidity is concerned, the
present period of high interest rates
will prove or disprove the prudence
of a bank portfolio managers’ previous
policy decisions and that an ounce of
prevention is worth a pound of cure.
It is our conviction that the only effec
tive method of providing for adequate
liquidity in a tight-money period is to
build short-term resources during pe
riods of easy credit or of reduced loan
demand.
Following the 1966 credit crunch
and during the 1967 period of permis
sive monetary policy, we urged that
bank portfolio managers rebuild their
secondary reserves. We suggested
that maintaining at least one-quarter

of the investment portfolio in oneyear obligations was a rough measure
of adequate liquidity.
With the prospect of tighter money
in the first half of 1968, we continue
to advise that emphasis be placed upon
developing and maintaining satisfac
tory secondary reserves defined as
governments and agencies due within
two years. We further suggest chan
neling a substantial portion of newly
investable funds into these short in
struments and avoiding the extension
of present holdings if liquidity would
be appreciably impaired.
It is our opinion that pursuance of
the foregoing course should place a
bank in a good position to meet future
deposit outflows, as well as to service
the borrowing requirements of its
community without being confronted
with the somewhat sterile alternative
of selling better yielding instruments
at moderate losses or of facing the
even more sterile alternative of dis
posing of less-productive obligations
at substantial losses, possibly in a year
in which any loss is inconvenient from
a tax and earnings standpoint.
We believe that avoiding unwanted
losses more than compensates for any
sacrifice of return entailed by conser
vatism of the sort we suggest. More
over, this conservatism need not en
tail any immediate loss of return
when the flat yield curve that charac
te riz e s a high-interest-rate p e rio d
makes its appearance, as it now is
doing.
Handling Certificates of Deposit

The way in which we recommend
that a bank handle one particular kind
of deposit—namely, the certificate of
deposit—deserves special mention, be
cause it is related to the question of
liquidity, as well as to the problem of
the cost of money in periods of high
yields. The CD has become an in
creasingly important money-market
instrument. It bears a high interest

Bank Portfolio

Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

-A

37
rate in comparison with savings ac
counts. Also, it is likely to be held
by rate-conscious investors who may
withdraw if better yields become
available elsewhere. Thus, certificates
of deposit are a relatively expensive
source of funds in good times and
may be volatile in a tight-money pe
riod.
We suggest that the difficulties aris
ing from administering CDs can be
avoided if the money is put to work in
securities with due dates approximat
ing the fixed maturity of the deposit.
Thus, cash will be available in a pe
riod of rising interest rates to lock in
better yields and to cover increased
expenses if it becomes necessary to
refund the CD at a higher rate or to
redeem it if it is not renewed.
We further suggest that it is un
wise to match CDs of moderate length
with markedly more extended maturi
ties. The assumption that normal
cash flow in the form of increased
time deposits and loan repayments
would take care of any CD attrition
was disproved in certain cases in 1966,
and it could prove faulty if put to the
test in 1968.
Our suggestions will not produce
the highest possible return on CD
money, but they should enable a bank
to cover the cost by a comfortable
margin. Obviously, CD funds invested
in municipal bonds are now profit
able, for the taxable equivalent yields
on top-grade obligations come close to
6.5 per cent, even in one-year maturi
ties. There are, however, feasible al
ternatives for banks not in a position
to use additional tax-free income.
Farmers Home A d m in is tr a tio n
notes, which are direct obligations of
the federal g o v e rn m e n t, are one
worthwhile source of taxable return.
A market is made in these instru
ments, and they are available in a va
riety of datings. The one-year matu
rities, now yielding 6 per cent-plus
and traditionally priced at a conces

sion to other like-dated federal agen
cies, should interest portfolio man
agers seeking short-term taxable out
lets.
Buying High-Yielding Securities

What about the problem of obtain
ing funds for locking in the histori
cally generous returns on bonds fall
ing outside the reserve range in the
present bear market for fixed-income
investments? The advantage to be
derived from buying such high-yield
ing securities to stabilize income
against future downtrends in yields
is one of the principal attractive op
portunities offered by a period of high
interest rates.
Banks in an especially liquid posi
tion have no difficulty capitalizing on
a buyers’ market. Their excess funds
can be put to work or short securities
can be extended at little or no loss, to
guarantee an enhanced level of in
come for a number of years hence.
Let us now consider the problem of
banks whose liquid position may not
be too favorable, as well as of those
that hesitate to diminish liquidity at
a time when the impact of tighter
money is being felt. Such banks have
a means of realizing another attrac
tive opportunity inherent in a period
of high yields if their tax and earn
ings position permits them to absorb
losses. Loss sales and the subsequent
purchase of better-yielding bonds can
then be effected entirely outside the
reserve range.
Justified Losses

We believe that it behooves every
bank for which such a program is
feasible to consider its potential bene
fits. In our opinion, the losses that
will be incurred are more than justi
fied if they are accompanied by a cor
responding increase in portfolio pro
ductivity. A number of Studley, Shupert bank portfolio management cli
ents adopted this philosophy in the

second half of 1967. We are reason
ably certain that other of our clients
will establish a loss year in 1968 in
order to avail themselves of the com
paratively high yields that we antici
pate in the first half of this year.
We advocate that any program en
tailing investment outside the reserve
range restrict government purchases
within a seven-year limit and munici
pals within a 15-year limit. Observ
ing these bounds should enable a
bank to avoid becoming overextended
while ensuring a good return for a
reasonable period. Any additional
lengthening of maturities u su a lly
would not be accompanied by an off
setting rise in return.
We do not advise corporates as
bank portfolio holdings. We think
there are many other obligations with
fixed maturities of moderate duration
that offer better value. Our recom
mended selections include municipals
within the 15-year range and Farmers
Home Administration notes available
in one, two, three and 10-year maturi
ties.
Proper timing is essential in taking
advantage of a period of high interest
rates. It is always difficult to deter
mine when a bank should commit
funds outside the one and two-year
range, and the problem is complicated
at present by the disturbing uncer
tainties arising from the international
situation. Nonetheless, we think that,
in the long run, moderately extended
bonds bought under current condi
tions will prove worthwhile inclusions
in any list.
To sum up: If a bank is able to take
advantage of the existing buyers’ mar
ket without undermining liquidity, it
should enjoy the flexibility to make
the most of future conditions. It will
have hedged its position against a
downtrend in interest rates, and it
should not be precluded from benefitting from any further uptrend in
yields.—End.

Management
H y G A Y P. G E R V IN
In v e s tm e n t O fficer
S tu d le y , S h u p e r t & C o m p a n y , In e.
P h ila d elp h ia , P e n n s y l

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Federal Reserve Bank of St. Louis

vania

Northwestern Banker, April, 1968

38
r

Banks Now Large Buyers
r

Of Institutional Bonds

B y T H O M A S J. K E N N Y
P r esid en t
B . C. Z ie g le r and C o m p a n y
W e s t B e n d , W isc o n sin

Expect 1968 a Good Year

upward trend in short-term rates but
not too much change in long-term
rates.
In recent years institutional bonds
have become increasingly popular in
financial circles as sound investments
for banks, pension funds and insur
ance companies. They have long been
popular with individual investors, but
banks are now one of the largest buy
ers of institutional bonds, placing
them in their trust-fund accounts,
pension or profit-sharing funds which
they administer, and in their own
portfolios. For instance, banks have
profitably used their “reserve-for-baddebts” account by investing in insti
tutional bonds.
The accompanying tabulation of the
larger in s titu tio n a l bond issues
brought out in the first two months of
1968 by B. C. Ziegler and Company
indicates the varieties of higher in
terest-bearing obligations available.

From our contacts and observations
we anticipate that 1968 will be a year
fraught with pitfalls, but nevertheless
a good year economically. With the
large federal budget, a potential tax
increase, and the ever-increasing costs
of the Vietnam war, it is hazardous to
appear dogmatic at this time. We do
venture that the year could see an

Need for Expansion Evident

During most of 1966 and 1967 the
large insurance company and pension
fund buyers were pretty well out of
our market. However, there are in
dications now that 1968 will see them
back in our market. Naturally, we
will first satisfy the demands of our
thousands of loyal individual and
bank cu sto m e rs who helped us
achieve a $237 million sales volume
in the years 1966-67.

The need for expanded facilities for
our nation’s hospitals, schools and
churches is very evident. Our firm
has arranged about $200 million of
loans which will be closed in 1968,
1969 and 1970. The needs of these in
stitutions are due mainly to: (a) rap

Our issues have always been par
ticularly sought after by banks due
mainly to the availability of short
term bonds with serial maturities of
one to 10 years. B. C. Ziegler and
Company pioneered the serial matu
rity schedule in corporate bond is-

MERICA’S churches, hospitals
and schools are c o n s ta n tly
growing in size and in facilities
to keep pace with the nation’s popula
tion growth and technological ad
vances.
As investment bankers specializing
in underwriting church, school and
hospital bond issues, our company is
particularly aware of and apprecia
tive of the important role commercial
banks and trust companies play in
our business.
Many of our institutional bond is
sues are referred to us by our friends
in the banking community. In un
derwriting these issues for institu
tions throughout the United States,
and in selling the bonds nationwide,
we are in constant communication
with scores of bankers and trust offi
cers.

Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

idly increasing population, especially
in the pre-college and college age
goups, (b) the ever-lengthening aver
age lifespan, (c) widening scope of
health services, and (d) Medicare and
the popular acceptance of health in
surance.
The supply of good institutional
loans is there and will continue, but
it is our hope that demand for insti
tutional bonds will continue at its
present pace so that yields will not
increase much over present high lev
els.

SKETCH of St. Luke’s Hospital at Duluth, Minn. This facility is being constructed
with $2,500,000 in AA rated bonds.

sues way back in the 20’s. With their
enviable safety record, higher yields
and serial maturities, institutional
bonds have been and will continue to
be ideal investments for bank time
Issuer

Sisters of St. Joseph
of Carondelet
St. Paul, Minn.
DOSN
Cincinnati Community
Hospital Assn.
Cincinnati, Ohio
FMB
Swedish Hospital
Minneapolis, Minn.
FMSB
Lutheran Charity
Association
Jamestown, N. D.
FMSB
Griffin Hospital
Derby, Connecticut
FMSB
Cherry Hill Hospital
Cherry Hill, N. J.
FMSB
St. Luke’s Hospital
Duluth, Minnesota
FMSB

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Federal Reserve Bank of St. Louis

money and also for trust accounts.
Interim Paper

Since inaugurating our interim pa
per department back in 1961 we have
seen this vehicle climb from $21 mil
Rating

Rates

Maturities

$4,000,000

6y2%

1-1-69 to 7-1-73

$1,100,000

6%%

6-1-73

$2,500,000

6y2-6%%

7-1-69 to 1-1-78

$1,200,000

6y>-7%

7-1-69 to 1-1-78

$2,500,000

614-7%

8-1-69 to 2-1-78

$3,000,000

6%-7%

8-1-69 to 2-1-78

614-7%

7-1-70 to 1-1-78

Amount

$2,500,000
AA

lion in sales the first year to $79 mil
lion in 1964. Volume varies according
to institutional demands for very
short-term construction financing. In
1967 sales of new issues of interim
paper totaled $51 million with an ad
ditional $108 million of renewal paper.
About 26 per cent of this volume was
placed with banks throughout the
country. Banks carry out interim
paper notes along with commercial
paper under loans and discounts and
use it to cover their time deposits.
Yields during January of this year ran
between 5% and 6 per cent. These
notes mature from a few days to six
months.
In the years ahead it is logical to
assume that in reaching for income
greater than that obtainable from con
ventional corporate bonds and debentutres, professional buyers of securi
ties will add more and more institu
tional bonds to their portfolios. So
long as qualitative factors protecting
the investor are maintained and the
quantity of underwritings continues
to increase annually, the buyers and
d is tr ib u to r s of institutional bonds
should enjoy a confident future and
the borrowing institutions should con
tinue their sociological benefits to our
American way of life.— End.
Northwestern Banker, April, 1968

40
HE bank’s bond portfolio is a
very proper topic for discussion
at any profit seminar. From the
standpoint of size, the bond portfolio
is generally about a quarter to a half
of your entire bank. From the stand
point of earnings the bond portfolio is
called upon to provide additional in
come although we r e c o g n iz e , of
course, that the earning function of
the portfolio cannot ignore its pri
mary responsibility which is to serve
as a secondary reserve.

In the years since World War II, a
booming economy has put pressure
on the commercial banking system’s
ability to supply credit, and so time
deposits, on ce sp u rned , are now
sought and at a much higher cost.
Thus most commercial banks no
longer find it advisable to hold good
sized investments in cash and govern
ments while turning away proper de
mands for credit. Nor do they find it
profitable as the cost of their money
increases. Loan demand has gotten
stronger, and cash is invested some
what more closely.
The most dramatic changes, how
ever, are within the securities port
folio. During the past five or six
years the size of the government port
folio has been just about cut in half
to accommodate increases in both the
other securities and loan portfolios.
As a matter of fact, the most recent
averages for member banks and FDIC
insured banks discloses a higher per
centage invested in other securities
than in governments.
In addition, a word of caution. As
commercial banks move more heavily
into risk assets at the expense of non
risk assets, I certainly acknowledge
the power or influence of supervisory
authorities. While I do not suggest
that we ignore our supervisors, nei
ther do I suggest that banks surren
der their individuality to some type
of industry-wide rules. I think it rea
sonable for a bank to establish some
targets or goals for itself in this field
of asset allocation.
The average bank now has about 30
per cent of its assets invested in the
combination of cash and governments.
These are the non-risk assets. It also
has about 70 per cent of its assets in
vested in the combination of loans,
other securities and miscellaneous as
sets. These are the risk assets.
Whether you employ a goal of a 3070 per cent split, as in the case of the
average, or something less aggressive,
is a matter for each individual bank
to decide. The setting of a goal, how
ever, does provide you with a prede
termined level for the size of your
government portfolio and funds availNorthwestern
Banker, April, 1968
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Federal Reserve Bank of St. Louis

able for investment over and above
this predetermined figure can then be
directed into higher yielding loans
and other securities.
The point that I hoped to have
made in this first part of my talk is
that most banks are carrying less in
the way of governments and more in
the way of other securities than Avas
formerly the case. The reason for this
switch is simply to achieve an in
crease in yield.

Examining

Other Securities

In the remarks preceding you have
heard me use the term, other securi
ties. By definition, this is all securi
ties that are not direct obligations of
the United States Treasury. In most
banks the other securities account is
composed of either U. S. government
agency securities or tax-exempt mu
nicipal bonds or some combination of
both. The division of the other secu
rities account between agencies and
municipals should be determined ex
clusively by the amount of taxable
earnings. Those banks that have tax
able earnings in excess of $25,000 and
in the 48 per cent tax bracket, should
confine their other securities account
to tax-exempt municipal bonds since
this yield is greater than agencies on
an after-tax basis.
Conversely, those banks whose tax
able income is consistently less than
$25,000 and in the 22 per cent bracket,
should confine their other securities
account to U. S. government agency
securities since in this tax bracket
their yield on an after tax basis ex
ceeds that of municipals. Many banks
earn slightly more than $25,000 and
find it appropriate to own both agen
cies and municipals in their other se
curities account. This, too, is appro
priate so long as the tax-exempt in
come is income that otherwise would
be taxed at the 48 per cent rate. It
behooves any bank to ensure that the
composition of their other securities
account is correct in order to achieve
the most yield. As I stated, the pri
mary determinant of this composition
is the extent of the bank’s taxable in
come and its tax bracket.
You may have noticed that I have
omitted from this discussion of the
other securities account any reference
to either corporate or church bonds.
This is by design, since I am not a
fan of either when it comes to bank
bond portfolios. While the creditworthiness of either type of security
has generally been unquestioned in
recent years, I do have some doubt as
to the liquidity and marketability of
this type of investment instrument.
My real purpose in omitting them,

however, is because their yield is not
as great as municipals for banks in
the upper tax bracket, and it also is
not as great as the yield on loans for
banks in the lower tax bracket.
Maturity Schedule

The shape of the maturity schedule
also has undergone some change in
recent years. A cause, although I am
sure it was not originally intended to
be one, is the 4% per cent rate limi
tation that Congress has placed on
new issues of treasury bonds. For
most of the past couple of years the
treasury has found it necessary to
come to the market with new issues
of securities in a climate that de
manded an interest rate in excess of
4t4 per cent and so they have been
pretty well limited to new issues of
treasury notes instead of bonds.
Heretofore or up until mid-1967
treasury notes have been defined as
issues with an original maturity of
from one to five years. During 1967,
the treasury obtained congressional
approval to change the definition of
treasury notes to include issues with
original maturities of from one to
seven years and the 5%s of November
15, 1974, that were issued last Novem
ber 15 were the first new issue of
treasury notes brought to market un
der that new authority. As a result,
all treasury issues with a coupon rate
in excess of 4*4= per cent will mature
within five years except, of course, for
the one issue just mentioned.
As a result, there has been no need
or inclination to extend the maturities
in the government portfolio beyond
the short and intermediate areas in
order to capture a higher yield. In

-L

*
(.

B y JO H N D. T U R N E R
A ssista n t V ic e P r e sid e n t
F irst N ational B a n k
St. P a u l , M in n e so ta

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■

fact, the exact opposite has been the
case. During this same period the
yield curve on new issues of munici
pal securities has generally slanted
upwards in that a longer maturity has
brought a greater reward than a short
er maturity. So from a pure yield
standpoint, there has been good rea
son to extend slightly the maturities
to the municipal portfolio. In this
manner short governments satisfy the
first requirement of the bond port
folio, which is to serve as a secondary
reserve for the bank, while longer
municipals at higher yields serve to
increase the investment income.
Along with almost everyone else I
feel that it is next to impossible to
establish a broad definition for ade
quate liquidity that would apply to
all banks. To a large degree the ade
quacy of liquidity depends on the
need for it, and this can vary consid
erably with each bank. Historical
records, plus the banker’s knowledge
of his own deposit make-up, are still
the best ingredients for a sound decision in this regard.
I do, however, think it advisable for
member banks to consider the avail
ability of not only the discount win
dow, but federal funds as well, in de
termining their available liquidity.
This would be especially true during
those periods when the yields on oth
er investments are a good deal better
than treasury bills. As we shall see
later, non-member banks have just
about the same privileges through a
correspondent.
Investing Excess Reserves

Let us now turn our attention to a
subject which I have chosen to call,

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investing your excess reserves. Com
mercial banks are using this area a
lot more as the use of the negotiable
certificate of deposit becomes more
prevalent. The newness of the CD
also has brought on substantial and,
as yet, unanswered questions as to
the liquidity that this type of deposit
requires.
CDs create additional deposits. In
some banks, this has simply reduced
net borrowed reserves; in other banks,
it has created excess reserves. The
former simply reduces debt, while the
latter must put these reserves to
work. Almost everyone will put them
to work in either loans—governments,
agencies or municipals. Some will in
vest these funds in accordance with
their normal regular in v e s tm e n t
schedule, and this will usually have
the most profitable result. Others
will feel that this CD is a demand de
posit and in investing the funds will
try to achieve the utmost in liquid
ity. However you decide, there fol
lows several devices by which excess
funds may be invested and all of these
devices are in the relatively short
term area.
Treasury Bills

The first is treasury bills. They
are easily the most marketable, the
most liquid and, therefore, they gen
erally command the least rate of re
turn. The next area is somewhat
akin to the first and this I call buying
securities with a put. Here a cus
tomer may acquire from us either
government, agency or municipal se
curities with the right to put them
back to us at any time and with the

yield established at the time of pur
chase. We as the seller do not retain
a call on these securities but the cus
tomer buyer does acquire a put,
which permits him to cash the secu
rities at any time without loss. The
yields in this type of transaction are
generally no better than either the
shortest treasury bill or a very short
PHA note.
You can see that this type of trans
action offers investment opportunities
where the investment period is un
certain. You also can probably see
that when the investment period is
certain, or at least fairly so, then more
yield will accompany an outright pur
chase. In selling securities with a
put we would prefer to restrict the
amounts to $50,000 and up.
Trading Federal Funds

The next investment process is
available to member banks only, and
this is the trading of federal funds.
This is the sale by one member bank
of immediately available Federal Re
serve funds to another member bank
on an overnight basis at a negotiated
rate. At our bank we stand ready to
either buy or sell federal funds from
or to correspondent member banks re
gardless of our own position.
We suggest that federal funds trans
actions should be at least $100,000 in
size. The reasoning for this is profit
ability to the customer.
While we stand ready to work with
correspondent member banks in fed
eral funds transactions in either direc
tion, I must add that there might be
an occasion when we would be unable
to either offer or purchase fed funds,
such as occurred in the fall of 1966
Northwestern Banker, April, 1968

42
when funds were very scarce and the
rate reached 6 per cent. I also wish
to point out that the comptroller of
the currency places no limit on the
amount of federal funds transactions,
but the Federal Reserve System does.
We would be happy to comply with
either ruling and if you wish to sub
scribe to the ruling of the Federal Re
serve System, then you will want to
limit federal funds transactions to 100
per cent of capital and 50 per cent of
surplus.
Non-member banks can accomplish
much the same thing as federal funds
transactions by establishing a borrow
ing relationship with a correspondent
bank when additional reserves are
needed and by buying either short
term treasury bills or securities with
a put during periods when excess re
serves are on hand.
Short-Term Municipals

Another medium for the investment
of funds is short-term municipals and
PHA’s. You will seldom if ever see a
new issue of municipal bonds contain
a six-month maturity; however, there
is a large secondary market for mu
nicipals in which many bonds trade
and through the passage of time some
of these are fairly close to maturity.
PHA’s are Public Housing Adminis
tration temporary loan notes which
are generally issued by a local hous
ing and redevelopment agency. An
opinion by the U. S. attorney general
makes debt service on these notes an
obligation of Congress in the event of
default. So they are in effect a taxexempt obligation of the United
States. As such they are AAA rated,
and their yield on a taxable equiva
lent basis is slightly better than treas
ury bills of a comparable maturity.
On the other hand, the purchase of
short-term municipals will generally
provide more yield than PHA’s, since
these bonds need not necessarily be
AAA rated. A word of caution here
in purchasing short-term municipals.
These bonds have most likely been is
sued sometime ago and, therefore,
have a lower coupon rate and are
probably selling at a discount. Where
a deep discount is involved, you will
want to purchase a maturity of at
least six months in order to qualify
the discount portion for a long term
capital gains tax rate of 25 per cent.
I also should caution you against at
tempting to match the maturities in
your bond portfolio with what you
believe to be the life expectancy of
your CD’s, since a longer municipal
will bring at least 1 per cent more
yield than a short-term municipal and
an unrealistic approach in this regard
could be costly.
Northwestern Banker, April, 1968

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of you. Since that time treasury bill y
yields have advanced and so the in
vestment process just described was
reversed.
The fact remains that some banks
with low ratios could acquire some
commercial paper at the expense of
^
additional treasury bills. Here there
is good liquidity by maturity, since
these notes generally mature within V<
six months. I hasten to add that
their marketability prior to maturity
it very limited unless the owner is
willing to discount his yield.
Certificates of Interest

“. . . and now a few words from our sales
manager, Mr. Quota, er . . . Mr. Holmes.”

All of the investment methods de
scribed thus far, with the exception
of federal funds, affect the bond port
folio. I am about to discuss some
others, however, that are treated as
loans.
Commercial Paper

The first of these is commercial
paper. This is simply the purchase
of an unsecured promissory note of
a corporate borrower who generally
commands an excellent credit rating.
There are prime name borrowers who
generally place their paper directly
with the purchaser, and there are
lesser known names who generally
work through a commercial paper
broker in the placement of their pa
per.
The rate on prime name commercial
paper will always be less than the
prime rate of interest, since this type
of company enjoys bank lines of cred
it at the prime rate of interest. It
also will always be higher than the
treasury bill rate, since there must
be some inducement to attract buy
ers. Maturities may be specified from
as little as three or four days to as
long as six or nine months. Commer
cial paper rates may fluctuate from
day to day, and at the moment the
rate on prime name paper is from
5% per cent to 5% per cent. In pur
chasing commercial paper you are in
effect granting a loan and so your
own bank’s legal lending limit to any
one c u sto m e r w o u ld apply.
Early in 1967 when the Federal Re
serve Open Market Committee was
injecting good sized amounts of ex
cess reserves into the commercial
banking system, treasury bill yields
dropped below 4 per cent. So at that
time we recommended commercial
paper at 4% per cent to a good many

The next type of loan that may be
acquired is certificates of interest in
a pool of commodity credit corpora- V
tion loans. These certificates may be
purchased in any size or amount from
the Commodity Credit Corporation in
Washington, and they are identical to
the CCC loans that many of you in
agricultural areas originate. As a
matter of fact, this pool of loans is
made up of loans that various leaders
throughout the country have already »A.
surrendered. They have the benefit
of the same government guaranty,
and the rate may fluctuate either up
wards or downwards but generally
will stay a little bit ahead of the treasury bill rate.
It is currently 5% per cent. These
certificates mature on August 1 of
each year. They may be cashed at T
any time prior to the due date by en
closing them in your cash letter. Our
bank gives immediate credit although
the funds are actually collected one
day later. The owning bank receives
all of its principal plus interest for
the period of time held. Many of you
already own CCC loans that have
been made on a direct basis to local
f
farmers; however, in working through
the CCC loan pool they then become
available to any bank in just about
any amount. In addition I should
point out that they do not earn inter(
est unless held for at least 10 days.
Government Guaranteed Loans

The last type of loan available for
investment purposes are government
guaranteed loans originated by the
Farmers Home Administration. These
loans may be purchased in any
amount from the Department of Agriculture in Washington and are ac
companied by an insurance endorse
ment signed by the U. S. Department
of Agriculture. In purchasing these
loans, there is an initial fixed period
of time during which the loans have
neither marketability nor liquidity.
Following the fixed period, there is
SECURITIES PORTFOLIO . . .

(Turn to page 110, please)

Hanks and

the Student Loan Program
B y L E W IS

E . D A V ID S

H ill P r o fe s s o r o f
B ank M anagem en t
U n iv e r sity o f M isso u r i
C o lu m b ia , M isso u r i

there are a number of sacred cows
1 Nwhich
OUR current economic scene,
many of us identify with,
such as the small farmer, the small
businessman, minority groups and
students aspiring to higher education
—to mention only a few. Politicians
find it expedient to support legisla
tion sympathetic to these special in
terest groups. It is generally not con
sidered politically prudent to publicly
oppose loan programs purported to be
in the interest of these groups.
The critical phrase is purported to
be since many of best intended pro
grams have, in the past, fallen far
short of their stated worthy social and
economic goals.
This columnist is seriously con
cerned about the direction of the sa
cred cow of the college student loan
program and the role of commercial
banks in the program. His position
differs materially from those of the
federal government, the A.B.A., many
college administrators and borrowing
students as to the means of financing
a viable college student loan program.
It is decidedly a minority position,
but it is based upon several facts
which seem to have been overlooked
so far by the previously listed interest
groups.
This minority position starts off
with one basic premise. It is: College
educated people on the average will
individually earn at least $100,000
more during their working career
than non-college educated people. The

$100,000 is, if anything, a most con
servative figure. Ergo: People who

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have a life estate or income of over
$100,000 or more than underprivileged
citizens don’t need or require a sub
sidy through the banks or a federal
program. What they need is availabil
ity of funds to borrow at realistic rates
of interest—not a subsidy.
The second fact is: Of all invest
ments, dollars spent on education will
provide, on the whole, a higher rate
of return than funds invested in al
most any other area. Ergo: If one is

intelligent enough to aspire to having
a college education, one should have
enough sense to recognize the preced
ing logic.
These two facts are the basis for
questioning any college loan program
requiring a subsidy, whether it be
supported by the federal government,
the A.B.A., college administrators or
students. Attempts to foist on the
financial structure a fixed, simple an
nual interest rate unrelated to the pre
vailing higher real world interest
rates indicate a lack of basic under
standing of the workings of the finan
cial market place.
Rigid Rate Structures

In the first place, a fixed subsidized
rate student loan program simply per
petuates the mistakes of such unsuc
cessful fixed rate programs as have
been governmentally imposed, such as
the peg, the F.H.A. points travesty
and the R.E.A. program. We should
have learned by now that rigid rate
structures are self-destructive. A col
lege education is going to be had by

over half our high school graduates.
Should the college man or the non-col
lege man pay?
Under the current student loan gov
ernment program, the 6 per cent sim
ple annual interest rate ceiling puts
the lender in an untenable position.
Few p e o p le or institutions have
wanted to discuss or even think about
some of the moral, ethical and super
visory implications of such an unreal
istic rate and the self-defeating philos
ophy behind similar subsidy pro
grams.
A 6 per cent simple annual rate of
interest is below the prime borrowing
costs of our best and highest rated
b o rro w e rs . And they borrow in
amounts affording economies of the
scale of size. The 6 per cent student
loan rate is substantially below what
adequately collateralized, secured resi
dential mortgages yield. Is it reason
able, fair and equitable to its stock
holders for a bank to divert funds
from an optimum investment and loan
return to subsidize borrowing college
students? Students that do not need
or are not entitled to such subsidy in
view of their higher economic poten
tial over their entire working span.
Students, in fact any borrowers, nat
urally would prefer to pay a 6 per
cent simple annual rate of interest, or
less if they could get it. Few who
really need the funds would forego
borrowing at even double the rate.
Twelve or 18 per cent of a simple anSTUDENT ROAN . . .

(Turn to page 50, please)
Northwestern Banker, April, 1968

Bow Banks Can Protect Against
M A R V IN L . S H A Y
S pecial A g e n t
F ed er a l B u rea u o f In vestig a tion
M in n e a p o lis, M in n esota

■ Mr. Shay was a speaker a t the recent Bank Management Con
ference conducted by the Minnesota Bankers Association in
Duluth. The balance of the report and pictures from that
meeting appear on page . . in this issue.
Mr. Shay gave a b rief background of statistics covering
bank holdups and burglaries, then devoted more than a half
hour to a question and answer period on this subject. A resume
of his presentation follows:

CAMERAS are perhaps the most effective equipment against
bank robberies today. Police records show that 90-92 per cent
of robbery crimes are solved when cameras are in use. From

THE brief nine months of 1967, bank robberies and
I 'Nburglaries
showed a 60 per cent increase over the
entire year of 1966. Also, the amount of loot taken
was up over the previous year.
During the same period of 1967, bank robberies alone
totaled as much as all of the three- to four-year period
just preceding. Burglaries also were on the increase in
1967, occurring at the rate of two or three for each rob
bery. One day last year in the Twin Cities area there
were two daylight robberies within a short time.
Minimum Standards
Q. Would you comment on the bill in Congress that

proposes “minimum standards” for bank protection?
A. Hearings are now being held on this bill that would
appoint the FDIC to set up such “minimum standards”
for insured banks. The biggest problem is trying to
decide what constitutes “minimum standards,” since this
could vary from one bank to the next.
Cameras Are Effective

Q. Do you have any statistics to show that this protec
tive equipment is effective?
A. Yes. Police records show that where banks are
equipped with cameras, 90 to 92 per cent of the crimes
of robbery are solved. Every bank is not equipped with
these cameras and in the St. Paul area last summer,
where so many robberies took place, bank officials were
discussing with us what could be done. The subject of
bank employees came up and whether they could be of
more help. Our FBI office set up a school to train bank
employees on “What to Do If You Have a Bank Rob
bery.”
This worked well and these training sessions, that
lasted for several hours, were then conducted in all parts
of the state. We had several objectives:
1.
In case of robbery, safety is of first importance—for
you and your customers.
2. How to be better witnesses if there is a robbery.
3.
How to cut down losses by not having maximum
amount of money on hand.
4. How to activate the alarm system.
Northwestern Banker, April, 1968

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Training Results

Later we had five instances where women tellers were
robbed on Friday and they had just had the training
school on the preceding Wednesday. All five said em
phatically the training had been of help and we are in
clined to agree, for out of the five robberies we have
solved four. There were no cameras installed in these
banks. Some had alarm systems, but mainly the appre
hension of the criminals was made possible through de
scriptions provided because these girls were alert.
However, we’re in favor of camera equipment because
it’s a deterrent as much as a detection device. People in
the robbery and burglary business tell us they look for
the decals on bank windows and doors stating that cam
eras protect the premises 24 hours a day.
I feel personally that this deterrent effect might run
as high as 75 per cent of the effectiveness and 25 per cent
detection, because if the criminals know cameras are
present and they have a choice, they will pick a bank
without a camera. Even with criminals wearing masks,
cameras are of value because they pick up other features
and descriptive traits that are helpful to law officials.
Camera Use

There are several manufacturers of good cameras and
other protective equipment. Some cameras are set up
to shoot continuous movie film when the camera is acti
vated during a robbery. A sequence camera is one that
shoots pictures at preset intervals throughout the day,
or will shoot a series of pictures on demand.
There is widespread knowledge now among the public
that protective cameras have provided FBI and local
police with leads that have resulted in arrests of the
criminals. In one case there was an older woman who
had $300 withdrawn from her savings account. She told
the bank she did not make the withdrawal. The bank
official remembered the camera and called the woman at
home to tell her they could look at the film the next day
to see if they could determine who made the withdrawal
because the camera would have the pictures synchron-

Holdups9 Burglaries

this series of pictures taken during an actual robbery, it is easy
to see why photographed crimes are usually solved. Pictures
are courtesy of the LePebure Corporation, Cedar Rapids, Iowa.

ized with that particular time. The woman called him
back a while later and said they had discussed this at the
dinner table and the film viewing the next day would not
be necessary. It turned out their 26-year-old daughter
had run into some difficulties and had taken the liberty
of making the withdrawal.
In another case, a Twin City bank was robbed. A
nearby bank was equipped with cameras and the officer
in charge there called our FBI office to tell us he was
sure his bank had been “cased” and that we could look
at their film to see if it would be of assistance.
Who Commits Crimes?
Over 50 per cent of bank robberies are committed by
one man with a gun. There are many other types of
bank robberies and robbers. Extortionists and sneak
thieves, for example. Many sneak thieves work in pairs,
preying on tellers who are careless. If a teller has his
money exposed and other conditions are favorable, one
man will distract the teller’s attention while the other
lifts the money. Most of these losses are undiscovered
and are checked off as mistakes.
Our FBI men encourage local police when we meet
with them to always look banks over carefully each time
they go by.
Another thing we always want your tellers to do if at
all possible is to save the note that is usually handed
them by the robber.
Carelessness can be costly. In one North Dakota bank
that was closed to the public for business on Saturdays,
several employees were there working on a Saturday.
They had left the door unlocked. A man walked in and
with the window blinds down and no protective devices
he leisurely cleaned out the bank.
Deterrents
Q. What are the greatest deterrents to robberies and
burglaries?
A. I would say:
1. Proper protective devices.
2. Proper detection and apprehension.
3. Big penalties.
Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

46
One problem we have is with the news media. A bank
robbery makes big news headlines, while the sentencing
gets small news. In one case we apprehended a bank
robber who tried to lock four people in the vault. We
got him in Toronto with the aid of the Canadian Mounted
Police. This man was wanted in two states for murder.
After we got him, the papers were hardly interested in
running any story. News emphasis on capture and pun
ishment, we think, is a great deterrent for it makes
others consider the consequences.
Guns Not Advised
Q. How do you feel about guns in the bank?
A. We advise against it unless the person with the gun

is an expert, which is unlikely. These men (robbers) can
so often be unpredictable, due to narcotics, false courage,
etc., which will stimulate their nervous reflexes.
Many of the bank alarms into police headquarters or
other localities are silent just for this purpose—so the
robber won’t get excited.
Some of these criminals try to destroy the cameras,
but in many cases we are able to recover the film and
are still able to develop it and apprehend the men in
volved.
In one such case, the robber walked right up to the
camera, looked into the lens then thumbed his nose and
shot the camera. We got the film and the robber. In
another case, the camera was thrown off a bridge into
the water. We were alerted by people who saw this and
again the film was recovered and used for apprehension.
Chances of Being Robbed

G. What are the chances of a bank being robbed in
1968 compared to 1967?
A. This depends, in my opinion, on whether you are
with or without camera equipment.
In 1967, the increased incidence of bank robberies was
higher than it was for service stations. Bank robberies
constitute the highest rate of crime of violence our office
has to handle.
And yet, professional burglars and robbers tell us that
most banks are not as well protected as supermarkets.

A. It’s difficult to reply without seeing the bank in
volved. One camera installation, available on the mar
ket, comes in a rented package installed and main
tained for about $30 to $40 per month. The purchase
price is about $1,100 or $1,200 and you have the main
tenance.
This brings up the subject of other alarm systems. We
find that so many of them are so old they are rusted out
and are valueless. Maintenance of these protective de
vices is highly important.
What Robbers Don’t Like

In connection with bank protection, professional bur
glars and robbers have told us these are the things they
don’t like:
1. Armed guards. This presents a gamble, which most
avoid in favor of a bank without armed guards.
2. Uniformed guards. This is another psychological
deterrent.
3. Semi-circular teller windows. Other customers can
see much easier what is going on at the next window.
4. Balconies, especially those with glass.
5. One-way mirrors. They never know who is on the
other side.
6. Lights. One apprehended burglar said he has seen
many farms better lighted than banks.
7. Exposed vault. Burglars dislike having vaults visi
ble to the street when there are no drapes to cover their
activity.
8. Towns with a night police force.

Q. What is the typical protection cost for a $5 million
bank?

One reason why many burglaries are difficult to solve
is that good burglars clean up after themselves and their
crimes are highly difficult to solve.
As protection against these after-hours prowlers, what
some bankers are doing is to install audio equipment
with a line run directly into their home or the police sta
tion. These devices can hear everything in the bank
after hours—a person walking, drawers opened, just
about any noise. The only problem is that some forget
to turn it on. So now this equipment has a time device
that will turn it on automatically at a preset time. If
the banker hears any noise he can call the police from
his home without the burglar suspecting he has been
detected.— End.

PICTURES taken by a camera located at the front of the bank
during the same holdup' give another view of the robbery. Pic
ture at left shows woman in foreground being held hostage by

an unpictured gunman as armed robber makes his way down the
row of teller windows. Picture at right shows scene in the bank
as robbers flee.

Cost of Protection

Northwestern Banker, April, 1968

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■

Improved Protection..
with the electronic certainty of
LeFebure Alarm Systems

Protection against burglary, hold-up and fraud.

Bank crimes have tripled in the past ten years and are still on the in
crease. Improve your protection now against burglary, hold-up and
fraud, with a LeFebure Alarm System. Both manual and semi-automatic
systems will accept all components you need . . . silent hold-up alarms,
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L e F e b u re
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operation. Talk to him, soon. LeFebure Corpora
Subsidiary ot
tion, Cedar Rapids, Iowa 52406.
Walter Kidde & Company, Inc.

ALARM SYSTEMS . . . JUST A FEW OF THE 3900 WAYS LEFEBURE CAN IMPROVE YOUR OPERATION.
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Federal Reserve Bank of St. Louis

Analyzinfi a È*itrt ïotio
(Continued from page 35)
of securities; average maturity and
per cent of securities due each year;
and determine the risk asset ratio.
We like to have more than one person
analyze the portfolio because there is
a great advantage to several different
viewpoints on how this should be hanbled.
After we have come to some conclu
sions, we like to meet with the banker
personally. We think there are a lot
of pertinent questions that should be
asked the banker before an accurate
appraisal can be given. We ask about
the deposit structure— how volatile
are these deposits, when are peak de
posit periods and about future deposit
growth. We ask about the bank’s
loans, the demand at present and what
can be expected in the future. We
also discuss the bank’s present tax pictture as to whether or not the bank is
in the 22 to 48 per cent bracket. We
also like to know something about the
general economic condition of the
bank’s trade area. We feel that all
these questions are important and
that we have to first look at the bank
as a whole, before we can attempt to
answer any questions about the invesment portfolio.
Liquidity

In developing this material and ex
amining the portfolio itself, we always
look at the portfolio with three basic
principles in mind—liquidity, capital
adequacy and profitability. We feel
that the problem of liquidity merits
first consideration by the bankers and
that the concept of liquidity should
never be overlooked in determining an
over-all loan or investment policy.
The banker must always be pre
pared to meet deposit withdrawals as
well as take care of the legitimate loan
requests of his customers. He should,
therefore, have in his portfolio an ade
quate amount of relatively short-term
securities where the risk of market
fluctuation is nominal. Since every
bank is different, it is difficult to give
any hard and fast rule, however, we
feel that in most cases if a bank keeps
10 per cent of its assets in one-year
securities, this should be adequate to
provide for the normal liquidity needs
of a bank.
Capital Adequacy

In determining the capital adequacy
of a bank, we look to see how the de
positors are protected against any loss.
We must also view this from the
stockholders’ viewpoint so that the
capital earns and pays an adequate re
turn to its owners.
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Federal Reserve Bank of St. Louis

After the liquidity needs are met,
and the demand for loans have been
satisfied, we then decide how much of
the bank’s assets can be placed in in
vestments on a risk-free basis or on a
risk basis. Risk-free assets are consid
ered to be all cash, government secu
rities, government guaranteed loans
and short-term governmental agencies.
Risk assets would be considered as ev
erything else, but mainly all loans and
municipal bonds.

. . and one egg salad—
over the counter.”

The risk asset ratio is a measure of
the amount of capital in relation to
the total amount of risk assets. The
average risk asset ratio of country
banks has been changing in recent
years, but the old rule of thumb was a
risk asset ratio of 6 to 1 was satisfac
tory. However, in the last few years,
a risk asset ratio of 7.5 to 1 is far more
common and accepted. We would sub
scribe to this latter ratio, but we feel
that the higher the risk asset ratio,
the greater degree of liquidity should
be maintained.
Income

Having considered the general li
quidity needs of the bank and the capi
tal adequacy, we would then turn our
attention to the income aspect of the
portfolio. We feel that the portfolio
manager should never subordinate the
need for liquidity or the capital ade
quacy of the bank to the amount of
income that is produced by the port
folio. Basically the return received
on a bond is measured to a great de
gree by the amount of risk taken. The
greater the risk taken, the greater the
return expected. The risk in any bond
is twofold and is considered both from

a credit standpoint and a market
standpoint. The portfolio manager
must look not only at the present, but
to the future as well in appraising the
expected income from his portfolio.
He must never lose sight of the net
tax-free return on his investments,
since taxes play such an important
role in running a bank today.

Recommendations

In our overall analysis, we strive to
keep the three basic principles of liqidity, capital adequacy, and income in
balance. We find that when any one
of these is greatly out of balance with
the others it can only lead to trouble
for the bank.
There are numerous recommenda- r
tions that can be made, whereby the
income from the portfolio can be in
creased. The most usual are to
lengthen the average maturity of the
government bonds, buy other instru- y
mentalities in place of having so many
government bonds, shift more assets
from riskless to risk assets and take
profits and losses for tax purposes.
There are times when recommenda
tions do not lead directly to an in
crease in income; however, the port
folio might benefit greatly due to the
improved condition of portfolio.
It only takes a very small percent
age increase of after-tax income within
the portfolio to make an appreciable ^
after-tax increase in the bank’s net
earnings. As an example, the chart
shows the per cent of assets and earn
ings of Federal Reserve Banks in the
$5-$10 million category for the year
1966. While this was for banks in the Y
Eighth Federal Reserve District, it
would probably be basically the same
for other Federal Reserve Districts.
1966

$5 million to
$10 million banks
U. S. Government
Securities .......................
Other Securities ...............
Loans ..................................
Cash ....................................
Real Estate Assets.............
Other Assets .....................

26.0%
13.9%
43.1%
15.6%
1.3%
0.1%
100.0

Net Income After Taxes. .

0.78

From the chart you see that the
average bank has 39.9 per cent of its
assets in its investment portfolio. If
you had a $10 million bank, it would
mean the bank would have approxi
mately $4,000,000 in securities. A
1/10 of 1 per cent increase in after
tax income would be $4,000. Since the
ANALYZING PORTFOLIO . . .

(Turn to page 116, please)

ties:

From safekeeping to

remittance our Bond
Department is ju st a

We'll be glad to handle the detail work and take responsi
bility for safeguarding stocks and bonds. But that's only
the beginning . . .
We'll give advance notice of maturity dates of bonds
and similar obligations, and notify you when securities
become due by call.
We'll provide a list of securities held, as well as current
market quotations.
We'll accept open orders to buy and sell Government
and other securities at given prices as the market permits.
And we can do all of these things just a little bit better
because our methods and equipment are completely
up-to-date.

little bit better

NOW IN OUR
, SECOND CENTURY,
OF BANKING

w a

-D

e s

o in e s

S ixth and W a ln u t, D es M o ine s 4 • 2 8 4 - 8 6 8 6 • M em be r Federal D e p o s it In s u ra n c e C o rp o ra tio n

"Yes . . . we're here to help you get what you w ant." Bob Wissler,
Vice President; Alan Braga, Assistant Vice President; John Hunt,
Assistant Vice President; John Johnson, Assistant Vice President.

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Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1968

Student Loan P rogram
(Continued from page 43)
nual rate of interest has not prevented
people from buying automobiles or us
ing revolving credit. College students,
among others, today pay such rates.
Why not for higher education, which
is a much better investment?
One of the unanticipated side bene
fits of recent truth in lending legisla
tion is likely to be a realization on the
part of borrowers that rates of 12 to
18 per cent are commonplace and, in
fact, are freely determined market
rates predicated upon lenders’ costs
and selection between profit opportu
nities. It is likely that the current
market unreasonability of a 6 per cent
simple annual rate of interest for per
sonal student educational loans will
be recognized with time, but it will
have been at a social cost to banks and
students beyond the interest rate dif
ferentials.
Urged To Join Program

Many bankers have had their arms
twisted to join the student loan pro
gram. This was done through their
trade associations, by college admin
istrators and by p o litic ia n s , who
threatened implicitly that if bankers
did not make the loans, other financial
intermediaries would be able to get
their foot into the banking doors or,
even worse, the government would
make loans directly. These are less

(^FjecLer

significant problems than building
into the structure subsidy for every
special interest group.
Many banks felt it was incumbent
upon their public image to support the
loss leader college loan programs.
Some bankers sincerely believe that
seed loans made to college students
below-costs to the bank will, in time,
result in more permanent relations
and, subsequently, profitable accom
modations.
Students and bankers tell me that
there is a tendency for the 6 per cent
student loans that are made by the
bankers to be tied to their evaluation
of related activity. In the real world,
this is what would and should be ex
pected. That is, a low 6 per cent stu
dent loan will be made if the profita
bility of the student’s family account
or business association justifies the
bank in making the accommodation
loan. To some naive do gooders such
a type of decision making is somehow
tainted. It should, however, be rec
ognized as the logical working of the
market. Incidentally, it makes for
prudent banking.
The effect' is simply that those that
have less need are able to obtain be
low market rate loans. Those that do
not have a profitable associated ac
count to absorb the loss of student
loan find some of the banks reluctant

(¿lowme,

nc.

Municipal Bonds
818 Insurance Exchange Building
Des Moines, Iowa 50309
Phone 515 243-5188

to make the loan. Ergo: The pur
ported goal of the program is not
achieved.
The proposal supported by the
A.B.A., that a $35 per loan processing
payment by the federal government to
the banks would encourage banks to
make more student loans, seems to be
a blatant invitation to such vocal op
ponents of banking as Representative
Patman to charge that a “give away”
by the federal government to the
“Wall Street monopolist bankers” has
been effected.
If a 6 per cent simple annual rate of
interest can be justified for loans to
college students (they number today
about half the graduates of high
schools, and the proportion is increasing), why not similar loans to disad
vantaged minority groups, to those
over 65 years of age, to those suffering
from a physical or mental disability,
to small farmers, to small businessmen, to women, to native Indians, to
people in Appalachia, to veterans, to
widows, to those in areas declared dis
aster areas, to those interested in urban renewal, to those interested in re
ducing smog, in sewage disposal, in
parks, in highways, the fine arts, ex
ploration of space—the list could be
expanded ad nauseam.

BONDS

W AYNE

Phone 326*2356

D A VENPO RT, IO W A
NEW

Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

HUMMER
C H IC A G O

E X C L U S IV E L Y

Davenport Bank Building

y
y

Conclusion

The writer is truly sympathetic
with individuals and groups which
are identified with financing the costs
of higher education. This is especial
ly true for those who do not have the
sufficient savings to do so without re
course to borrowing. He also knows
that the more special interest groups,
though worthy, are given a subsidy,
the more difficult it is to achieve a
defensible rationalization for the total
economy.
The Federal Reserve System very
early in its history learned a basic
truth which is applicable to this top
ic. It is: “Quantitative controls are
more workable and effective than
qualitative controls.” In effect, the
current approach to student loan guar
antee programs is qualitative and likely to have the same historical experi
ence as other qualitative programs.
A wise society learns from the mis
takes of the past.— End.

M O R R IS S E Y & C O ., 1NC.
M U N IC IP A L

YORK

STOCK

EXCHANGE

& CO.

)

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O N E W A LL S T R E E T . N EW YORK

A Charter New York Bank
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

Get

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Veteran Dick Weyrauch, with his 24 years as a First of Minneapolis cor
respondent bank specialist, is considered a “ right hand man” by many
bankers in southern Minnesota and northern Iowa. He works in close har
mony with Herb Olson, a seasoned member of the bank’s Investment De
partment, who knows the bond market from a correspondent’s point of
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covering every need of banks and bankers in their territory. Call them or
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N o rth w e s te rn

Banker,

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Federal Reserve Bank of St. Louis

1968

53
1934 and assistant vice president in
1961.
Mrs. Crosby and her husband left
on March 23 for a month’s vacation in
Hawaii.

Minnesota

NEWS

Okays Bank Bids
P. W, GANDRUD
K. A. WALES

President
Exee. Secretary

Benson
Minneapolis

Hedunud Fulls
p p r o x im a t e l y

3,500

p e o p le

to u re d the new colonial-type
A
State Bank of Redwood Falls recently
during the last in a scheduled series
of three grand openings at the bank,
according to Gene Sipe, bank presi
dent.
The most recent opening, held on
March 2, was for the general public.
Over 300 area businessmen and their
wives visited the new bank and at
tended a buffet at the Redwood Coun
try Club on February 20. A similar
open house was held February 27 for
30 area bankers and bank representa
tives.
The building, designed by DykinsHandford, Inc., Minneapolis architects,
is authentic Georgian, measuring 70
by 58 feet with two portico entrances,
a drive-up teller’s window, an after
hour depository and a parking lot.
Exterior of the bank is of tradition
al red brick and white wood trim,
with a roof-top copper-covered cupola,
front and bank collanaded porches,
fan light windows and traditional iron
hanging lamps.
Interior of the building features red
carpeting, green and off-white walls,
damask draped windows and a fire
place in the customer waiting area.
Located in the main banking room are
six tellers’ windows, three private of
fices, a separate posting room, offi

Opens
cers’ space for four desks, two booths,
sit-down desks in the safe deposit area
and bank and customer vaults.
Men’s and women’s lounges, an em
ployees’ general lounge, storage space
and the Redwood County Historical
Society Museum are located on the
lower level of the building.
Royal Builders of Redwood Falls
were general contractors.

Named Program Director
Gerald L. Dreier has been named
director of the automotive dealer pro
gram at Olmsted County Bank in
Rochester.
Mr. Dreier is a native of the Minneapolis-St. Paul area. Following his
1957 graduation from Macalester Col
lege, St. Paul, he joined the staff of
First National Bank of Minneapolis,
where he spent eight years working
in the bank’s installment lending de
partment. In 1966, he accepted the
position of finance and insurance man
ager at Village Chevrolet in Wayzata
and was later named sales manager.

Retires After 42 Years
Irene Crosby, assistant vice presi
dent of the Citizens State Bank of
Brainerd, has retired after 42 years
of service with that bank. She started
in banking at the Citizens State in
1921, was elected assistant cashier in

The state banking commissioner
has approved the expenditure of
funds for the proposed Lakefield
Farmers State Bank building and low
bids will be accepted soon, according
to B. W. Rue, bank president.
Bids totaling $100,703 were opened
recently. The local J.O.M. Schlottach
Construction Company was low bid
der for the general contract.

Receives Jaycees Award
Harold L. Smith, who retired from
the presidency of the First National
Bank of Luverne on February 15, has
received the annual “ Outstanding
Boss” award from the Luverne Jay
cees. Mr. Smith had been president
of the bank for 15 years at his retire
ment and had been in the banking
business for 51 years.

Capital Stock Increases
The Banking Division of the Minne
sota Department of Commerce has an
nounced the following capital stock
increases by stock dividend:
Annandale State Bank, Annandale
—from $50,000 to $100,000.
Badger State Bank, Badger — from
$35,000 to $52,500.
Northwestern Bank of Commerce,
Duluth—from $432,500 to $500,000.
First State Bank of Gilman, Inc.,
Gilman—from $50,000 to $75,000.
Hardwick State Bank, Hardwick—
from $25,000 to $50,000.
Hayfield State Bank, Hayfield —
from $30,000 to $90,000.
State Bank of Redwood Falls, Red
wood Falls—from $75,000 to $100,000.
First State Bank of White Bear
Lake, White Bear Lake—from $150,000 to $300,000.
The Edina State Bank, Edina, has
increased its capital stock from $200,000 to $220,000 by a sale of new stock.

Retires as Director

NEW HOME of State Bank of Redwood Falls, Minnesota.

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Federal Reserve Bank of St. Louis

Long-time Red Wing banker, Paul
Wintervold, a director of the Red
Wing National Bank, was honored re
cently at a dinner party marking his
retirement from the bank’s board of
directors.
Mr. Wintervold joined the bank
while still in high school in 1916. In
1936, he was elected assistant cashier
and was named vice president and
cashier in 1948. He was elected direc
tor in 1953. He retired from the bank
in 1964,
Northwestern Banker, April, 1968

54
H

V
who has
C
been regional counsel for the re
gional administrator of national banks
ORNELL L. MOORE,

o f t h e U. S.
Treasury Depart
ment since 1966,
has jo in e d the
N o r th w e s t e r n
National Bank of
M in n e a p o lis as
a ss is ta n t v ic e
president in the
le g a l d iv is io n .
P r e v io u s ly he
had been associated w i t h the
Crocker-Citizens National Bank of
San Francisco and the office of the
Comptroller of the Currency in Wash
ington, D. C.
* * *
Carl Fritzner of the Northwestern
National Bank of Minneapolis Lake
Street Office has won first place in the
42nd annual national public speaking
contest for the A. P. Giannini Educa
tional Endowment Prizes held by the

Minneapolis Chapter of the American
Institute of Banking.
Speaking on the subject of “Deter
mining Management Development Re
quirements,” Mr. Fritzner won a cash
prize of $30 and an expense-paid trip
to Sioux City, Iowa, to represent the
Minneapolis Chapter in the District
10 American Institute of Banking con
test.
Dick Thomas of the Federal Re
serve Bank won second place and $20,
while Bob Hunt of Farmers and Me
chanics Savings Bank was awarded
third prize.
* * *
Services were held recently for Mrs.
Shirley S. Ford who died in Great
Falls, Mont. Mrs. Ford, a long-time
resident of Minneapolis, was the wife
of Shirley S. Ford, the ninth president
of the Northwestern National Bank.
Mr. Ford died in 1945.
* * *
The First Security State Bank of St.
Paul has doubled its capital from
$400,000 to $800,000 by declaring a 100

W o m a n E x e c u t iv e oté H a s tin g s B o a r d
HE election of Mrs. E. C. Hoffman as the ninth member of the board
T
of directors of Northwestern National Bank, Hastings, Minn., brings
to that bank’s board one of the most able women executives in the mid
west.
Mrs. Hoffman has been president of The Smead Manufacturing Com
pany of Hastings since her husband’s death in 1955.
* The Smead Company is one of the world’s foremost
producers of filing supplies, filing systems and sta
tionery products for business and the home. Since
assuming the presidency of the company, Mrs. Hoff
man has led the company in a successful expansion
program that included building new manufacturing
plants in Hastings and Logan, Ohio; purchase of an
other company in Los Angeles, Calif.; establishing
and expanding warehouse facilities in Chicago, 111.,
and Wayne, N. J., and introduction of a number
of new filing systems for business, industry, insti
tutions and government.
A spokesman for the bank said the board of directors was expanded to
nine members because Northwestern National of Hastings has enjoyed
a substantial growth amounting to 50 per cent in the past five years,
keeping pace with the growth and prosperity of Hastings and surround
ing area.
Northwestern
Banker, April, 7968
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Federal Reserve Bank of St. Louis

per cent stock dividend. Surplus has
been increased to $600,000 and undi
vided profits to $375,000.
>{s >Js >ji
Gerald

Marick

has been elected
a ssista n t credit
manager of the
M a rq u ette N a
tional Bank. He
is a graduate of
the W is co n s in
State University
of Eau Claire and
joined Marquette
in 1966 as a cred
it trainee.

* *
Two new directors have been named
to the board of Northwestern Bancorporation. They are Robert J. Chris
tianson, partner in the Faegre and
Benson Minneapolis law firm, and
Milton F. Coonan, president of GibbsCook Equipment Company of Des
Moines, Iowa.
Mr. Christianson has been with

R e c e p t io n

GEORGE H. DIXON, new president of
the First National Bank of Minneapolis,
is guest of honor at an informal recep
tion in the bank cafeteria. Mr. Dixon is
shown in foreground receiving staff mem
bers’ congratulations, along with Gordon
Murray, now chairman of the board, and
Charlotte Kryduba of the bank's adver
tising staff.

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Federal Reserve Bank of St. Louis

Seventh & Robert • S t P a u l Phone 222-6666

KS'

m.
c f
re

MemberFDIC

R O B E R T E. S I P P L E
Adm inistrative Vice President
A R T H U R A . H A E S S IG
Vice President
JO H N D. C LEA R Y
Asst. Vice President
DONALD H. JO H NSO N
Asst. Vice President

Northwestern Banker, April, 1968

M in n es o ta

News

Faegre and Benson and predecessor
firms since 1934. He is a graduate of
the University of Minnesota College
of Law, is a member of the American,
Minnesota and Hennepin County Bar
Associations, a director of Title In
surance Company of Minnesota and
Butter Kernel Products, Inc., both of
Minneapolis, and the Red Wing Shoe
Company of Red Wing, Minn.

Anotes Fartn Advisar y B oard
PPOINTMENT of a nine-man ad
A
visory board for the Nicollet
County Bank at St. Peter has been

Mr. Coonan has been owner and
president of the Gibbs-Cook Equip
ment Company since 1949. He is a
director of the Iowa-Des Moines Na
tional Bank and of the Iowa Power
and Light Company, and is a member
of the advisory board of Mercy Hospi
tal, all of Des Moines.

announced by Sam Gault, president
of the bank. Purpose of the farm ad
visory board is to provide farmers in
the area an opportunity to work to
gether in studying and improving
farm management with resulting in
creased profits for the farmer.
In announcing the new service, Mr.
Gault said, “Farming is an integral
part of the Nicollet County Bank and
also the entire community. Since
farming is changing at an accelerated
rate, the bank has set up this service

B ep ort F ists State Bank B atios
er of banks, shows that commercial
loans and discounts in all these banks
represent 52.13 per cent of total de
posits.
Total deposits at year-end in Min
nesota state banks were $2,494,953,872.
The makeup of these deposits was
(with cents deleted):
Demand ....................$ 818,751,210
Time ......................... 1,425,059,991

16,374,733

U. S. Govt............
State and Political
Subdivisions . . . .
Dep. of Banks....
Other Dep............

N HIS analysis of 1967 year-end call
Imercial
reports of Minnesota state com
banks, M. L. Rye, commission

202,458,851
9,161,185
23,147,899

TOTAL..................$2,494,953,872
Mr. Rye’s analysis listed average ra
tios related to risk assets, total assets
and total depoosits. The complete
comparison chart he released shows
these figures:
Percentages Reflected
To Total
To Total
To Total
Risk Assets
Assets
Dejjosits

Total Risk Assets .........
Total Assets ..................
Total Deposits ..............
Total Capital Accounts..
Add Reserve for Losses
on Loans .....................
Add Reserve for Losses
on Bonds ..................

.1,794,496,040.25
.2,725,637,306.69
.2,494,953,872.65
. 199,885,885.92

11.14

7.33

8.01

18,195,395.52

1.01

.67

.73

1,355,860.38

.07

.05

219,437,141.82
Conventional Loans and
Discounts .................... .1,300,642,078.21

12.22

8.05

8.79

72.47

47.71

52.13

Since 1919

U n d e r w r i t e r s and D is trib u to rs
o f C o rp o ra te and
M u n ic ip a l Sec u ritie s

A L L I S O N - W I L L I A. M S

C O M P A N Y

NORTHWESTERN BANK BUILDING

MINNEAPOLIS, MINNESOTA 55402

Phone: 333-3 475 (Area Code 612)

Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

to fill the needs that this dynamic in
dustry requires.”
The advisory board will direct the
Nicollet County Bank’s agricultural
policy other than loans and deposits.
All nine men are prominent, success
ful farm owners. Several have re
ceived farm leadership awards.
The first action taken by the newlyformed group was to sponsor a semi
nar February 22 on “Futures Trading
in Livestock and Grain.” This topic
was discussed by A1 Donahue, secre
tary of the Minneapolis Grain Ex
change. The meeting was the first of
a series of three scheduled on this
topic.
Mr. Donahue indicated to bank offi
cials his surprise at the eagerness of
the 40 farmer registrants to learn how
they can hedge safely in the futures
market. He said it was an important
indicator to find that farmers, who
are historically the biggest specula
tors, would want to hedge their grain.
The meeting was restricted to 40,
said Mr. Gault, so the maximum could
be learned by each registrant.
“ The advisory board also has rec
ommended,” reports Mr. Gault, “that
since labor is a key problem to farm
ers in the spring and fall work that
a list be prepared of retired farmers
and farm boys in town that would
want to work. This list will appear
in our monthly farm news letter. The
board is functioning very well and is
a bigger success than anticipated.”

Mankato Bank
Changes Name
George W. Sugden, president of the
National Citizens Bank of Mankato,
reports that effective April 1, 1968, the
bank will official
ly c h a n g e its
n a m e to t h e
Northwestern Niatio n a l Bank of
Mankato.
Mr. S u g d e n
stated that since
the doors of the
bank were first
opened in 1872, it
has been a bank
G. w. S U G D E N
o f co m m u n ity
service . . . growing with Mankato,
helping Mankato grow.
Five years ago the bank moved to
a new location and a new building.
Now, five years later and with a 50
per cent growth in deposits, it is time
for another change. A change in the
name of the bank to one that properly

M in n e s o ta

News

NEW SIGN at Mankato.

and adequately identifies it with re
spect to this part of the country and
the role the bank serves for the people
of Mankato in the area known as the

Northwest.

Mr. Sugden also added that it is im
portant that people identify the bank’s
affiliation with the Northwest Bancorporation, an affiliation that enables
the bank to offer financial services
which are found at no other institu
tion in the Mankato area.
To commemorate the day, many ex
citing features for customers are be
ing planned by the public relations
department headed up by Ev Ohrt,
vice president in charge of advertis
ing and marketing.

Publishes Bank History
Doniver A. Lund, professional his
torian, professor of history and chair
man of the history department at Gustavus Adolphus College, St. Peter, has
recently completed a book entitled
“A History of the First National Bank
of St. Peter, Minnesota.”
The manuscript was compiled at the
request of the St. Peter’s bank and
later published, according to Sheldon
Abrahamson, president of the bank,
“ so the entire community could bene
fit from the account. . . .”
The book not only deals with the
history of the St. Peter’s bank, but
also takes into account the ups and
downs of the economic life of the en
tire town. It also contains interesting
illustrations and photographs of im
portant figures in the bank’s history.

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Northwestern Banker, April, 1968

M in n e s o ta

News

L to R—Paul Gandrud, pres, of the MBA and pres., Swift County Bank, Benson; John P. Knutson, chmn. of the Conference and sr.
v.p., Midland Natl., Mpls.; Matthew Hale, ABA general counsel, Washington, D. C., and Bill Kirchner, pres., Richfield B&T, Rich
field; John Turner, a.v.p., bond dept., 1st Natl., St. Paul; Mrs. and Mr. A. J. Roszak, pres., Valley Natl., St. Paul; Mrs. Robert
M. Hammerstrom; John Raymond, a.v.p., bond dept., 1st Natl., St. Paul, and Mr. Hammerstrom, a.v.p., Northern City Natl., Duluth.

V- j

Code, was written by a committee
Legislation,
H
o
ld
u
p
s. A utom ation
composed primarily of men with aca
demic backgrounds, would make it
possible for almost anyone to get into
H ighlight M anagem ent M eetin g
B y B E N H A L L E R , JR.
E d ito r

N HIS address at the recent Minne
IBank
sota Bankers Association Eighth
Management Conference in Du
luth, Matthew Hale, general counsel
for the American Baankers Associa
tion, revealed that the Federal Com
munications Commission now wants
to get into bank regulation because
banks are using long distance tele
phone lines in some types of comput
er operations.
Mr. Hale said ABA was to file its
brief within the week after his ap
pearance at the Minnesota meeting,
stating its position that this is a spe
cial banking function in the already
highly regulated banking field, and
FCC supervision should be directed
to control of telephone and telegraph
utilities, radio and TV.
Mr. Hale also reviewed “Current
Federal Banking Legislation and Liti
gation” for the approximately 300
bankers and wives attending the con
ference.
John P. Knutson, chairman of the
MBA Bank Management Committee,
presided at the meeting. Mr. Knutson
is senior vice president of Midland
National Bank, Minneapolis. A wel
come to the bankers and wives was
extended by Paul W. Gandrud, presi
dent of the MBA and president, Swift
County Bank, Benson.
Marvin L. “ Tony” Shay, special
agent for the FBI in Minneapolis,
talked for a short time about “Bank
Protective Equipment, Robbery and
B u rg la r y Prevention,” then con
ducted an interesting question and
answer session that extended more
than a half hour. Because of the imNorthwestern
Banker, April, 1968
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Federal Reserve Bank of St. Louis

portance of Mr. Shay’s subject at this
time when bank crimes are on the
rise, his remarks and suggestions are
contained in a special article else
where in this issue.
Reviews Consumer Code
William G. Kirchner, a Minnesota

State Senator and president of Rich
field Bank & Trust Company, Rich
field, reviewed details of the proposed
Consumer Credit Code that is being
drawn up by national committees
from various fields. It is currently
in draft number six, which will be
used as is, or amended, for drafting
as a bill to be presented at the next
session of the Minnesota legislature.
He said draft number seven will soon
be printed and distributed widely.
Mr. Kirchner pointed out that the

AT MICROPHONE is O. E. Anderson,
exec, mgr., Ohio Bankers Assn., and seated
at left is Jerry Choromanski, v.p. of the
MBA and pres., Chrystal State, Chrystal.

the loan business, without the neces
sity of showing need or convenience.
Also, usury would practically be out
the window, based on the assumption
that competition will beat rates down.
A committee of 26 bankers and bank
attorneys has since worked on subse
quent drafts for three years, fighting
to at least have the “need” element in
serted in the wording.
Mr. Kirchner stated regarding “time
sales differential” that under the
Truth in Lending Law, interest must
be declared as annual simple interest.
In Minnesota and some other states
this could contravene the state usury
law and bring this kind of lending to
a halt. To correct the situation would
require a constitutional change and
the Minnesota Bankers Association
could then find itself allied with all
the fringe groups and others advocat
ing passage of a Code which would
eliminate usury from the statutes.
He said, “We will have to search
deep on this one to see where it will
lead and determine if this is some
thing with which we can or should
live.”
He noted that one section of the
Code directs that if “balloon” pay
ments are used, the lender is obligated
to carry the “balloon” at the end of
the payment period without interest.
Mr. Kirchner said the goal of the
Consumer Credit Code is to stop un
scrupulous and unreasonable prac
tices. Since “you can’t throw out the
pan with the dirty “dishwater,” he
concluded, “bankers must work hard
to achieve the right kind of amend
ments. When you stand up and op
pose the consumer you are the target
of much criticism.”
Urges Initiative
O. E. Anderson, executive manager

W e hope to see
more of you
at the conventions
coming up

W e 'll lo o k fo r you a t th e S o u th D a k o ta
C o n v e n tio n

in S i o u x

F a lls

May

o f fa c t, w e 'll b e fo llo w in g th e

2-4.

Bankers

As a

m a tte r

co n v e n tio n

t r a i l th r o u g h o u t o u r d is t r i c t th is s u m m e r .

Som e

w h e re a lo n g th e w a y w e 'll ca tch som e tim e to
v is it

w ith

A n d you

you

and

renew

a c q u a in ta n c e s .

n ever know , so m ew here

you m ig h t ju s t see t h a t M a r q u e t t e
bank

turn

co rrespondent

fo r

th at

a lo n g th e w a y
c o u ld b e th e

''b e t t e r k in d "

s e rv ic e .

Carl Pohlad, President
Correspondent Bank Department
R. W . (Bill) Crouley, Senior Vice President
O tto H. Preus, Vice President
Avery Fick, Assistant Vice President
Stewart Stotesbery, Correspondent Bank O fficer
W . J. (Bill) Addington, Correspondent Bank O fficer
Len Erickson, C redit O fficer
Computer Department

Lome Newhouse, Representative

M arquette
National
Bank
SEVENTH AT MARQUETTE, M INNEAPOLIS, M IN N E S O T A /3 3 3 -5 4 1 1
Member Federal Deposit Insurance Corporation

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Northwestern Banker, April, 1968

M in n e s o ta

News

to R—John Fix, a.c., Northern Trust, Chicago; John J. Henry, v.p. & cash., Northwestern B&T, St. Cloud; Alex Christie, div. asst.,
bond dept., Northern Trust, Chicago, and John E. Kenefick, v..p, Northwestern State, Sauk Rapids. Don H. Johnson, a.v.p., Ameri
can Natl. B&T, St. Paul, and Sy Foss, v.p., Citizens State, Brainerd. A1 Highum, corresp. dept, repr., 1st Natl., Mpls.; W. M.
Lambert, sr. v.p., and Ronald R. Findlay, exec, v.p., Winona Natl. & Sav. Bk., and Dick Weyrauch, v.p., 1st Natl., Mpls.
L

of the Ohio Bankers Association, ad
dressed the noon luncheon on the top
ic, “How to Choose Your Own Rut.”
He challenged his audience of bank
ers to take the initiative in such high
ly important matters as management
succession, automation, civic planning
and involvement, selling of services
and developing new services and tech
niques that will equip banking to stay
ahead of competition.
He gave several examples of reports
available now from data processing
and why older bankers who have not
already done so should learn how
this new tool can work for them. “The
computer,” he stated, “is one of the
most amazing tools ever put in the
hands of bankers, but unless it is
used right it can be very costly to a
smaller bank.”
Mr. Anderson noted that electronic
data processing is only one way to
adjust to the “ Seven League Boots”
of scientific advances. He pointed out
credit cards, handling customers’ obli
gations on EDP, factoring, leasing,
mobile branches, underwriting of mu
nicipal securities and the common in
vestment pool for trusts.
“What will it take to serve these
customers of tomorrow?” he asked.
“New approaches to financing meth
ods.
“New and improved training tech
niques.
“Need for education beyond the
present banking schools. This need
is growing each year as attendance

swells at specialized banking confer
ences.
Are we willing to recognize that we
must play a part as leaders in rebuild
ing our decaying downtown areas?
No other industry or business has
done the job banking has done to pro
vide modern facilities in which to do
business.
“Mediocrity is O.K. if you want it,
but while you’re enjoying it, your
competitor bank will provide the serv
ice. And, if all banks in your area
hang back, some other financial sys
tem will provide the service the pub
lic needs and wants.”
Commission Study Report
Carter Golembe, president of Carter

H. G olem be Associates consulting
firm in Washington, D. C., gave a re
port on the current study of the Min
nesota Commerce Commission and its
three departments of banking, insur
ance and securities. Mr. Golembe was
retained by the MBA legislative sub
committee to assist it in this study.
He outlined two developments na
tionwide; 1. The great desire to mod
ernize state government and stream
line it. 2. Modernization of state
banking laws and departments.
These two objectives sometimes
create conflicts, he noted, such as the
case in Minnesota where this type of
bill would have a finance commission
er, combining the banking, securities
and insurance departments in one
unit under a super commissioner. The

effect would be to downgrade the stat
ure and authority of the individual
commissions. He said he did not be
lieve this was the real intent of the
bill.
To reconcile the two viewpoints—
achieve streamlining, yet maintain
the importance and independence of
certain departments—is the objective
of the MBA study committee. Pres
ently, the Minnesota Commerce Com
mission exists basically in name only,
for the controlling statute calls it a
department but gives it no staff or
authority except in one area—approv
al of applications by the three com
missioners seated together. At that
time they act as a commission, but
when they leave the room there is
really no commission as such.
The MBA committee suggests build
ing on the present structure by em
phasizing the importance of a com
missioner of banking to Minnesota,
the need for proper supervision, and
a following list of about 10 recommen
dations.
These contain the proposal for a
Commerce Commission chairman to
be appointed on a co-terminous basis
with and by the governor, with the
term of each commissioner remaining
at six years. An executive secretary
would be appointed to serve at the
will of the three commissioners, act
ing in concert, to coordinate activities.
This appointee could well be desig
nated the hearing examiner.
The bankers of the state would be

L to R— John R. Oltmanns, a.v.p., 1st American Natl., Duluth; Norman J. Sampson, v.p., State Bk. of Virginia; Walter L. Fredrick
son, v.p., 1st American, Duluth; Warren B. Kregness, pres., State Bank of Tower, and Orville H. Olson, cash., Blackduck State Bk.
Leo A. Nikolai, exec, v.p., Klein Natl., Madison, and Henry Snyder, a.v.p., 1st Natl., St. Paul. R. W. White, pres., 1st Natl., Cole
raine; Pat Colbert, v.p., Natl. City Bk., Mpls., and Ed. Kalafat, a.v.p., 1st Natl., Mpls.
Northwestern Banker, April, 1968

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Northwestern Banker, April, 1963

During the convention
friends a t The
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MORRIS MILLER

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JA C K S H O N S E Y

HOWARD JO HN SON

BOB JO H N SO N

HERB ECHTERMEYER

DAVE JO HN SON

FLOYD FOREMAN

ANDY HARRIS

TOM GREEN

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Won’t you make a point to drop in for a little

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Federal Reserve Bank of St. Louis

you’l l have only 5 8 2
Om aha N ational B ank
hand with you in Lincoln

)

MARV ROHN

BOB LARSEN

JOHN MITTEN

MERRILL JOHN SON

hospitality in the Lancaster Room, Hotel Cornhusker

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Federal Reserve Bank of St. Louis

M in n e s o ta

News

L to R—Dr. Kennes Huntley, prof, of finance, Mankato State College, Mankato; Floyd Stewart, corr. bk. off., Northwestern Nati.
Mpls.; George W. Sugden, pres., Natl. Citizens Bk. (renamed Northwestern Natl, as of April 1), Mankato; W. D. Schroeder, cash.,
Farmers State, Mountain Lake, and Bob Lloyd, v.p. & cash., Heron Lake State Bk. Fred Lewis, chmn., Northwestern Bank of
Commerce, Duluth; Kenneth Wales, exec, secy., Minn. Bkrs. Assn., and C. R. Duroe, pres., State Bank of Jeffers.

giving up their present automatic
chairmanship of the Commerce Com
mission.
Other recommendations include au
thority to consolidate activities within
the Commission. For example, using
all examiners from all three depart
ments on one big job. The chairman,
as the governor’s re p re se n ta tiv e ,
could veto such action.
The executive secretary could em
ploy hearing examiners, and any rec
ommendations on applications at hear
ings would ultimately be acted on by
the three commissioners in session.
Salaries of the three commissioners
would be substantially increased, with
the chairman’s salary highest.
There would be an annual report,
rather than the present biennial re
port, and commissioners would be re
quired to comment if any changes or
legislation are needed, or to so state
if none are recommended and why.
This would impose a responsibility on
the commissioners to continually ex
amine their departmental operations
and functions for possible improve
ment.
Fees paid would be restructured to
completely underwrite the budget of
the Commerce Commission.
The MBA committee, Mr. Golembe
pointed out, is taking the approach
that such legislation should improve
the strength of each commissioner’s
office and duties to one of more re

sponsiveness, rather than downgrade
these three departments.
Automation Panel
Donald L. Smith, vice president,

Liberty State Bank, St. Paul, moder
ated a panel discussion on “Automa
tion in Minnesota Banking.”
Don Guimont, vice president, Gam
bles Continental State Bank, St. Paul,
talked about the operational and man
agerial advantages to a smaller bank
of converting to EDP.
Clarence W. Rosen, assistant vice
president, Wayzata State Bank, went
over his bank’s experiences and deci
sions that were encountered when
considering whether to automate.
Parnell Sanford, president of the
Detroit State Bank, Detroit Lakes,
gave “Customer Reaction from Man
agement’s Viewpoint.”
The concluding speaker was Tenny
son Guyer, nationally known inspira
tional speaker, consultant and Ohio
State Senator.
The entire Conference was held in
Duluth’s beautiful new Civic ArenaAuditorium located on the harbor
front of Duluth Bay, with its spectac
ular view overlooking Lake Superior.
About 70 persons rode in two spe
cial cars on the train from the Twin
City area to and from Duluth. Two
chartered buses came from other
areas.

A highlight of the social activities
was the outstanding evening enter
tainment presented by the Duluth
Boys Chorus. These youngsters range
in age from about 10 to 15 and their
well-paced vocal presentations re
flected their rigorous training, disci
pline and the high quality of the tal
ent that exists throughout the more
than 30 members.— End.

Bank Director Dies
Gordon T. Kruse, 50, partner in the
firm of Kruse-Gross Furriers and a
director of the First Edina National
Bank (not the Edina State Bank, as
incorrectly reported in the March
N orthwestern B an k e r ), died recently
while vacationing in Lauderdale-bythe-Sea, Fla.

FDIC Minnesota Report
Deposits of all insured banks in
Minnesota were 14 per cent higher at
the 1967 year-end than at the end of
1966, according to the Federal Deposit
Insurance Corporation. Deposits in
Minnesota’s 719 insured banks were
$7.35 billion, compared to $6.46 billion
the year before. Time deposits in
creased by 18 per cent, while demand
deposits increased 9.2 per cent.
Total loans in these Minnesota
banks rose 14 per cent in 1967, while
investments increased 17 per cent in
Minnesota insured banks.

L to R—A. Dan Fiala, treas. of the MBA and pres., Ogilvie State: Mrs. Fiala; Mrs. Myron Ellingson, Kenyon, and R. W. Crouley,
sr. v.p., Marquette Natl., Mpls. Mrs. Del Wasser, American State, Watertown; Roy West, a.v.p., American Natl. B&T, Chicago, and
Mrs. Frank McCarthy, Glen Lake State Bk., Minnetonka. H. Richard Schutte, pres., Green Lake State, Spicer, and Marvin L. Rye,
Minnesota commissioner of banks, St. Paul.
Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

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Northwestern Banker, April, 196B

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Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

JOHN KRASTINS

JACK GERKEN

Assistant Vice President Assistant Vice Preesident

e s t e r n

N A T IO N A L

B A N K

IN S IO U X FALLS: D O W N T O W N , C O L O N IA L & S T O C K Y A R D S ;
B R O O K IN G S , C H A M B E R L A IN , H U R O N , DELL R A P ID S , G R E G O R Y
A N D M A D IS O N .

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W. W. F A IL IN G

Bunkers
A
TOtli Annual Convention
Ramada Inn, May 2-4, 1968

R. F. P E T S C H O W

EATURING several prominent speakers and a wide array of entertain
ment for convention guests, the 76th Annual Convention of the South
Dakota Bankers Association will open at the Ramada Inn in Sioux Falls
on Thursday, May 2, and will continue through Saturday, May 4.
Association President Walter W. Pailing, executive vice president of Na
tional Bank of South Dakota, Rapid City, will preside at the business sessions.
Serving with him during the past year have been these officers: R. F. Petschow, president of the Corn Exchange Bank, Elkton, first vice president, and
Curtis Lovre, president of Northwestern National Bank, Sioux Falls, second
vice president.
J.
S. Holdhusen, president of the Ipswich State Bank, Ipswich, is immediate
past president. Roy W. Terwilliger is executive secretary-treasurer, with
offices at Huron.
The annual golf tournament to be held at Minnehaha Country Club will
begin the three-day convention on Thursday, May 2. The same afternoon, the
annual bowling tournament will be held, with trophies being presented by the
N orthwestern B anker and the SDBA. The President’s Reception will top off
the day’s activities at the Country Club.
Special entertainment has been arranged for the ladies. The official conven
tion banquet to be held at the Sioux Falls Arena will round out the events of
Friday, May 3, and the convention will close at noon on Saturday.
The complete program follows:

C. A. L O V R E

Thursday, May 2
R. W . T E R W I L L I G E R

A.M.
8:00 Annual Golf Tournament—Minnehaha Country Club. Twosomes and
foursomes tee off after 8:00 and not later than noon, with all golfers in
the tournament finished and off the greens by 2:00 p.m. Special Senior
Division trophy for those age 55 and over.
9:00-11:30 Ladies’ Get-Together Brunch—Balcony overlooking the Lobby at
the Ramada Inn.
P.M.
1:00 Fifth Annual Bowling Tournament—Sport Bowl. Registration from 1:00
to 2:00 p.m.
6:30 President’s Reception—Minnehaha Country Club. Hors d’oeuvre table,
beverages, and music for entertainment and dancing until reception con
cludes at 8:30 p.m. Buses are provided for transportation to and from
the Country Club.

SE N . M U N D T

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(Turn to next page, please)
Northwestern Banker, April, 1968

S o uth

D a ko ta

News

Friday, May 3

Harvest Room, Ramada Inn

E. M. P E N I C K

D. F. B E R K L E Y

H. V. P R O C H N O W

A.M.
8:00 State Bankers Committee Breakfast—Oak Room, Ramada Inn.
9:30 Call to Order—Walter W. Pailing, president, South Dakota Bankers Asso
ciation; executive vice president, National Bank of South Dakota, Rap
id City.
Presentation of Colors—Sioux Falls Legion Post No. 14, Harold Huber,
Veterans Administration.
National Anthem—Paul M. Wegner, soloist; Mrs. F. Allen Bresee, ac
companist.
Invocation—The Most Reverend Lambert Hoch, Bishop of the Roman
Catholic Diocese of Sioux Falls.
Welcome to Sioux Falls—Mayor of Sioux Falls.
10:00 President’s Address—Mr. Pailing.
10:15 Address—“That Commercial Bank Image”—Edward M. Penick, presi
dent, Bank Public Relations and Marketing Association, Little Rock,
Arkansas.
11:00 Report of the South Dakota Bankers Association Resolutions Committee
—Herman Lerdal, chairman; executive vice president, Farmers and Mer
chants Bank, Aberdeen.
11:15 Address—“Parthenons or Mud Huts”—Dr. Dean F. Berkley, Univer
sity of Indiana, Bloomington.
Noon Announcements and adjournment for luncheon.
12:00 Annual Past Presidents’ Luncheon—North-South Room, Ramada Inn.
12:00 Ladies’ Luncheon and Program—Minnehaha Country Club. Program
by Mrs. W. J. Heimerman. Buses will pick up the ladies at motels and
will return them at the conclusion of the program at 2:30.
P.M.
2:00 Call to Order—Walter W. Pailing, president, South Dakota Bankers
Association.
Address—“The Greatness of a Nation”—Dr. Herbert V. Prochnow, hon
orary director, The First National Bank of Chicago.
2:45 Address—“ Banking in the News”—Willard C. Rappleye, Jr., editor, The
American Banker, New York City.
3:30 Report of South Dakota Bankers Association Nominating Committee—
J. S.Holdhusen, chairman; president, Ipswich State Bank, Ipswich.
Election of Officers.
Installation of Officers.
4:00 Meeting of South Dakota Members of the American Bankers Association,
Scott Lovald, presiding, South Dakota ABA vice president; president,
First National Bank, Philip.
4:30 Announcements and adjournment.
5:30-6:30 South Dakota Bankers Association Associate Members Joint Social
Hour—Harvest Room, Ramada Inn.
7:00 The Annual Banquet and Entertainment—Sioux Falls Arena. Stage
show immediately following the banquet featuring nationally known
stage, radio and TV personalities. Transportation will be provided by
bus for all convention guests to and from the banquet and entertainment.

►
--'I

Saturday, May 4
Harvest Room, Ramada Inn
W . C. R A P P L E Y E , JR.

A. R. G O R N I T Z K A

Northwestern Banker. April, 1968

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Federal Reserve Bank of St. Louis

A.M.
8:00 Central States Graduate School of Banking Breakfast — North-South
Room, Ramada Inn. Association officers and distinguished guests will
join the graduates for the event.
9:30 Call to Order—Walter W. Pailing, president, South Dakota Bankers Asso
ciation.
Presentation of 40-50 year pins awards, Roy W. Terwilliger, secretarytreasurer, South Dakota Bankers Association.
Necrology—Roy W. Terwilliger.
10:15 Address—Dr. A. Reuben Gornitzka, Direction, Inc., Palm Desert, Calif.
11:00 Address— “What Challenges Our World Today”—The Honorable Karl E.
Mundt, Senator from South Dakota.
11:45 Drawing for attendance prize.
Noon Announcements and formal adjournment of the 76th Annual Conven
tion.
Executive Council Executive Session—Noon Luncheon, Oak Room, Ra
mada Inn.

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TOM HORN
GENE HAGEN
JOHN DIEFENDORF
LANCE BLUE
T h e s e m en b r in g th e S e c u r it y N a tio n a l B a n k to th e ir c o r r e
s p o n d e n ts . I t ’s s tr ic tly a m a tte r o f S e c u r ity ’s p e rso n a l service.
S e r v ic e fo r a n y b a n k in g n e e d or p r o b le m . T h e y ’ll b e a t t h e
S o u th D a k o t a c o n v e n tio n in S io u x F alls M a y 2 , 3 an d 4, and
in L in c o ln fo r t h e N e b r a s k a c o n v e n t io n M a y 5 , 6 a n d 7.
S a y h e llo !

SECURITY NATIONAL BANK
6TH AND PIERCE STREETS

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

•

SIOUX CITY, IOWA

•

MEMBER F.D.I.C.
Northwestern Banker, April, 1968

So uth

D a ko ta

News

You W ill See Them nt the
South
ihthotu
HE following metropolitan bank
T
ers, service and equipment deal
ers have indicated they will be at
tending the South Dakota Bankers
Association’s 76th annual convention
in Sioux Falls, May 2-4.
Chicago
Continental Illinois National Bank
& Trust Company: Charles W. Battey,

vice president, and Paul Jonescue, as
sistant cashier.
First National Bank: Andrew J.
Nielo, assistant vice president, and
Clarence E. Cross, Jr., assistant cash
ier.

Kansas City
Commerce Trust Company: Thom

as C. Cannon, vice president.
Minneapolis
First National Bank: George Dixon,

president; George S. Henry, vice pres
ident; David B. Boies and Fred Haw,
assistant vice president; Dean R. Tollefson, assistant cashier.
Marquette National Bank: R. W.
(Bill) Crouley, senior vice president,
and Avery G. Fick, assistant vice pres
ident.
Midland National Bank of Minneap
olis: Douglas M. Johnson, vice presi

Convention Time
in
SOUTH DAKOTA and
NEBRASKA

dent, and John W. Ordos, assistant
cashier.
National City Bank: C. Bernard Ja
cobs, president, and Patrick W. Col
bert, Jr., vice president.
Northwestern

National

Bank:

Paul Lindholm, vice president; Donald
M. Anderson, vice president, and
Frank Lewis, assistant cashier.
New York
First National City Bank of New
York: C. Norman Gustafson, assistant

cashier.
Irving Trust Company: Donald C.

Jackson, vice president.
Omaha
National Bank:

G. Robert
Brown, second vice president, and
Don R. Ostrand, vice president.
Omaha National Bank: Fred Doug
las, vice president, and Del Olson, sec
ond vice president.
United States National Bank: Jay
Bordewick, vice president, and How
ard Nielsen, assistant vice president.
First

St. Paul
American National Bank & Trust
Company: Art A. Haessig, vice presi

dent, and John D. Cleary, assistant
vice president.
First National Bank: Wallace L.
Boss, vice president; Henry N. Snyder
and John E. Raymond, assistant vice
presidents.
Stock Yards National Bank: L. M.
Broom, president.
Sioux City
First National Bank: Dick Taylor,

vice president, and Mike Broderick,
assistant cashier.
Northwestern

National

Bank:

W. Evans, president, and E. L. New
ell, vice president.
Security National Bank: Thomas C.
Horn, senior vice president; John A.
Diefendorf, vice president; Gene Ha
gen, assistant vice president, and
Lance Blue, assistant cashier.
Toy National Bank: Conrad E.
Aronson and Richard A. Breyfogle,
assistant vice presidents.
Bank Equipment and Other Firms
Central States Health & Life Com
pany: Claude B. Faber, branch man

CONVENTION TIME is near for our banker friends in South Dakota
and Nebraska.
Ed Newell will be in Sioux Falls, May 2-4, to attend the 76th annual
South Dakota Convention.
Jim McGill will be in Lincoln, May 5-7, to attend the 71st annual
Nebraska Convention.

ager.
Dawson Hail Insurance: James R.
Dawson and Lyle C. Askerooth.
New York Terminal Warehouse
Company: Russell V. Peterson.
North Central Life Insurance Com
panies: Elmer Diedtrich, Bill Stohr

We look forward to seeing you there!

and Bob Stassen.

NORTHWESTERN NATIONAL BANK OF SIOUX CITY, IOWA

F. N. Coulson, Jr., Ross Forbis and
W. E. Felter.

Old Security Insurance Companies:

United States Check Book Compa
ny: Fred E. Pfaff, vice president;

w
Northwestern Bonker, April, 1968

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

Dwight Bos and Loren Anderson, rep
resentatives.

George Spence.
A banker’s
Idea Banker,
When a live stock auction firm was faced with
a possible shortage of a salable cattle, they
approached their local bank with an unusual

proposition, involving a line of credit well over
$ 2 5 0 ,0 0 0 plus complicated negotiations with
an Indian tribal council in a distant state.
The unique deal would have to be consummated
and supervised far from the bank's normal
trade area. Could George help? You bet!
- He made a flying trip to the Indian reservation,
examined the tribe’s water and feed supply and
their cattle feeding know-how.
Putting his ideas to work, George made the
deal a reality . . . to everyone’s satisfaction.
An Idea Banker like George, with his more
than 4 0 years of practical experience, may be just
the man to expedite your next cattle or agricultural
deal. Call him at (3 1 2 ) 621-5 086. The more
complex the problem, the more sound ideas he has.

American National Bank
à

and Trust Company of Chicago • LaSalle at Washington 60690
Bank Master Phone (312) 621-5000
Member FDIC ®1968ANB

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

Northwestern Banker, April, 1968

So uth

D a kto

News

Ann nul

ing “Cattle Futures as a Hedge.”
A i/ricu ll urn IConference
Questions and answers will follow.

Stated for H uron. A p ril 17-111
URON will again host the Annual
Agricultural Conference of the
South Dakota Bankers Association,
April 17-18 at the Plains. The coming
Conference is the most comprehen
sive to date, and early registration in
dicates that more than 300 guests will
be in attendance.

Registration

Registration for the conference will
begin at 7:30 a.m.
on W ed n esd a y,
April 17, at the
Plains Ballroom.
Coffee w i l l b e
served from 8:00
to 8:30 in the ball
room. The meet
ing will be called
to order at 8:30
a.m. by M e r l e
Marshall, presidW . A L E X A N D E R , JR.
i n g ch a irm a n ,
SDBA Agriculture Committee. Wal
ter W. Pailing, president of the South
Dakota Bankers Association and ex
ecutive vice president, National Bank
of South Dakota in Rapid City, will
give the official welcome, followed by
Charles Seaman, superintendent of
banks, Pierre.
Keynote Address

The keynote address, “Agri-Banking
An Industry Challenged,” will be
given by Willis W. Alexander, Jr.,

vice president, American Bankers As
sociation, and p resid en t, Trenton
Trust Company, Trenton, Mo.
Walter W. Wilcox, director of Agri
cultural Economics, Department of
Agriculture, Washington, D. C., will
then address the conference on “Agri
culture’s Recent Progress and Pros
pects.”
Following a 10:00 a.m. coffee break,
Dr. C. F. Davan, Jr., director of mar
ket research and development, Inter
national Minerals and Chemical Cor
poration, will speak on “Farm Change
and Its Impact.”
At 10:45 a.m. there will be a panel
discussion on the topic, “How Farm
Organizations Can Help,” moderated
by Merle Marshall, vice president,
Farmers and Merchants Bank, Huron.
Panel members are: Erhard Fingsten,
national v ic e p re sid en t, National
Farm Organization, Sergeant Bluffs,
Iowa; William B. Pearson, priest an
nalist, N a tion a l G range, Ogilvie,
Minn., and Ben Radcliffe, president,
South Dakota Farmers Union, Huron.
After the panel discussion the confer
ence will adjourn for lunch. There is
no formal luncheon planned.
Second Session, First Ray

The conference will reconvene at
Bales Continental Commission Com
pany, West Highway No. 14, Huron,
at 2:00 p.m., with opening remarks by
Jerry Bales and Otto Freitag, concern-

W ell See You at the
South Dakota
Convention
To the many South Da
kota bankers now using
we hope to see and greet
each of you at your State Convention.

J. STEFFEN

Io those oi you who are not familiar with National Fidelity’s
credit life programs, we would like to tell you about them. Look
lor us at the group meetings. W e ’ll be looking for you.
One o f the Nation s Strongest by Any Standard of Comparison

ational fidelity \jfe
IN S U R A N C E C O M P A N Y
Northwestern Banker, April, 7968

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

Y
A

Second Day’s Activities

At 7:30 a.m. there will be a rural
Banking School breakfast in the
Crown room of the Hickory House
Motor Inn.
The call to order will be made at
9:00 a.m. by R. J. “Stub” Fineran,
member, SDBA Agricultural Committee, Pierre National Bank, and the
opening address on the topic “The
Changing Rural Economy” will be
given by Professor Eber Eldridge, de
partment of economics, Iowa State
University.
“Agriculture—1980” will be the sub
ject of a 9:50 a.m. panel discussion led
by moderator Dr. John Stone, dean,
extension department, South Dakota
State University.
At 11:30 a.m. Robert Patten, vice
president and farm department man
ager, Monticello State Bank, Monticello, Iowa, will address the confer
ence on “How I Specialize in Ag
Credit.”
A luncheon in the Plains ballroom
with Walter W. Pailing, SDBA presi
dent, presiding, will be held at 12:30
p.m. Following the introduction of
distinguished guests and an address
by Harry E. Olson, Jr., of Fargo, N.
D., entitled “Reach Beyond Your
Grasp,” the conference will be formal
ly adjourned at 2:30 p.m.

Deposits Increased

our credit life program,
C. GUSTAVESON

At 3:10 p.m. “Beef Cattle Today”
will be the subject of remarks by Dr.
Charles J. Lewis, head of the Animal
Science Department, South Dakota
State University, Brookings. At 3:30
“Live Beef Evaluation” will be the
subject of a panel discussion, moder
ated by Walter I. Bones, Jr., vice president, South Dakota State Grocers As
sociation, Parker. Others on the panel
are: James J. O’Connell, extension
beef livestock specialist, South Dako
ta State University; Hollis Williams,
fat cattle buyer, Greenlee Packing
Company, Sioux Falls, and Leland L.
Steele, executive vice president, Farm
ers and Merchants Bank, Huron.

K A N SA S C IT Y 6, M O .

Gene Erickson, president of the
Southern Hills Bank of Edgemont,
S. D., reported to the board of direc
tors that deposits have increased
$100,000 during the past year. Mr.
Erickson told directors that this gain
was made despite the fact that the
Black Hills Ordnance Plant is being
phased out of existence.
The bank, which Mr. Erickson pur
chased less than a year ago, also has
a branch office in Buffalo Gap, S. D.
Total deposits as of December 29, 1967,
were $2,723,213.07.

Condensed Comparative

Statement of Condition
DIRECTORS

OFFICERS

ROBERT D. ANDERSO N
President, Sioux C ity
Stationery Co.
R. DUDLEY C O N N E R
President, Knapp &
Spencer Co.
C A R TER W . DENNIS
President, Dennis
Refrigeration Supply
Director, Northwestern
Bell Telephone
W ILL IA M J . FR O ELIC H
Attorney at Law
Director, Chicago,
Milwaukee, St. Paul &
Pacific R.R.
EU G EN E T. FLAH ER TY
K S C J-K T IV
FRED A . G LYN N
Vice President,
Younker Bros. Inc.
J O E T: G R A N T
President
BERNARD B. M ARKS
Shull, Marshall, Marks
and Vizintos
H EN R Y METZ JR .
Chairman of the Board,
Metz Baking C o.
M M. MEYERS
President, Life Investors
of Nebraska
W ILLIA M F. NUTT
President. Home Federal
Savings & Loan
ADAM PRATT, SR.
Restaurants &
Investments
ERNEST M. RAUN
Chairman of the Board,
Iowa Public Service Co.
M ILTO N J . SO ELBERG
President, Sioux C ity
Crockery Co.
W ILLIA M L. TEMPLE
Senior Vice President,
Retired
C H A R LES H . W A LC O T T
Vice President

J O E T. G R A N T
President
EDW ARD V. H O FFM A N
Vice President
ROBERT W . HUNT
Vice President
R IC H A R D C . TA Y LO R
Vice President
C H A R LES H . W A LC O TT
Vice President
DUDLEY J . M cG RATH
Cashier
W ILFR ED L. BU C K
Assistant Vice President
W ILL IS H . HARM S
Assistant Vice President
JO H N F. JO SEP H
Assistant Vice President
KENNETH B. PILLAR
Assistant Vice President
ROBERT W . ARN O LD
Assistant Cashier
B. M IC H A E L BRO D ERICK
Assistant Cashier
DENNIS A. DEVINE
Assistant Cashier
ROBERT T. KIN G SB U R Y
Assistant Cashier
LO REN P M ILLER
Assistant Cashier
D W A IN E D. STIN G ER
Assistant Cashier
TH O M A S J . TR A C Y
Assistant Cashier
G E O R G E D. VINSON
Assistant Cashier
M A R SH A LL F. W ILLIS
Assistant Cashier
VERN ON C . ROBERTS
Auditor
LO R R A IN E P. BRAZZELL
Assistant Auditor
W ILLIA M F. M ULLIN S
Mqr.— Badeqrow O ffice
ROBERT E. PECAU T
Vice President &
Trust O fficer
EM ELIN E FREMDER
Assistant Trust O fficer
G E O R G E A. JO H N S O N
Mgr.-Farm Management
Dept.

December 31 December 31 December 31 December 31
1964
1965
1966
1967

1963

ASSETS
29,774,382.28
Total Loans............ .. ..................• • ■ . 41,970,036.76 37,091,363.27 34,040,304.44 32,784,821.81
16,248,365.71 16,152,047.75 15,271,845.48 10,759,809.43 8,465,198.77
Cash & Due from Banks........ ..
12,390,848.44
U. S. Bonds .................................... . 11,413,945.36 9,214,985.19 9,614,570.34 10,036,225.84
4,614,282.93 3,909,168.97 4,172,016.38 3,411,422.14 2,205,361.29
State, County & Municipal Bonds . .
790,570.82
1,190,473.77 1,901,137.35
745,129.33
2,054,422.17
Obligations of Federal Agencies . .
82.500.00
82,500.00
82,500.00
82,500.00
82,500.00
Stock in Federal Reserve Bank . ..
10.012.00
10,007.00
35,000.00
35,000.00
25,005.00
Other Securities ...............................
913,886.73
908,125.84
902,833.37
918,690.92
Banking Ftouse, Furniture & Fixtures. . 1,013,790.61
308,198.01
330,070.86
372,424.26
385,142.54
523,558.00
Accrued Interest ............................
44,811.86
69,523.34
127,586.26
223,846.59
144,147.13
All Other Assets ............................
Total Assets ............................ . 78,090,053.67 68,757,874.56 65,809,554.30 60,293,643.61
LIABILITIES
Capital Stock
( I 10,000 shares at par value of $ 10) 1,100,000.00
................. 1,650,000.00
Surplus.....................
.Undivided Profits ............................. 1,219,606.39
Total

Capital Accounts .......

3,969,606.39

1,100,000.00 1,100,000.00 1,100,000.00 1,100,000.00
1,650,000.00
1,001,942.12

1,650,000.00
783,890.58

1,650,000.00
651,602.72

1,650,000.00
488,442.00

3,751,942.12

3,533,890.58

3,401,602.72

3,238,442.00

602,623.82
678,917.38
677,678.49
730,626.72
Reserve for Loan Losses ................
801,723.89
30,600,491.47 26,956,491.92
Demand Deposits
................ 38,046,545.69 35,335,457.97 34,812,792.85
24,986,651.23 23,508,117.91
Time & Savings Deposits................ 34,276,991.25 28,115,222.49 26,191,301.78
Total Deposits........................ 72,323,536.94 63,450,680.46 61,004,094.63 55,587,142.70 50,464,609.83
Unearned Discount.......................
Reserve for Taxes, Interest, etc. . . .
Total

477,854.44
517,332.01

Liabilities ...................... 78,090,053.67

438,010.03
386,615.23

410.946.01
182,944.59

419.959.40
206.021.41

412,956.97
267,137.58

68,757,874.56 65,809,554.30 60,293,643.61 54,985,770.20

i f m m u motfers-iWkTird:

F ir s t N a tio n a l B a n k
PROGRESS

in S io u x C ity

DEPARTMENT
F o u r th a t J a c k s o n

F ifth a n d P i e r c e

Northwestern Banker, April, 1968

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

S outh

D a ko ta

Ne ws

7 Gth Convention Com m ittees
HE 76th annual convention of the
South Dakota Bankers Association
will be held at the Ramada Inn, Sioux
Falls, on May 2, 3, and 4 and is rapid
ly taking shape.
General ch a ir
man of the con
vention is Orville
L. Bonacker, vice
pr e s i d e nt a n d
c a s h i e r of the
Fi r s t Nat i onal
Bank of Si oux
Falls. Se r v i ng
Mr. Bonacker in
arranging t h e
O. L. B O N A C K E R
m a n y functions

of the convention are these committee
members, all from Sioux Falls, with
the first listed on each committee be
ing chairman.

and C. B. Erickson, Union Bank &
Trust, co-chairman.

V“

Bowling Tournament

V. C. Schmidt, Western State Bank,
and Donald A. Isaacson, National
Bank of South Dakota.

Housing Reservations

Jack Bork, Valley National Bank,
and H. G. Mosby, Valley National
Bank, co-chairman.
Golf Tournament

A. R. Olson, Northwestern National
Bank.
Convention Banquet and
Entertainment

Curtis Kuehn, First National Bank,

BRI

THE MEN OF THE FIRST
ARE COMING THROUGH TO Y O U ...A N D FOR YOU!
The Correspondent Bank Department of The First covers
a lot of territory —in banking and geography.
Let the men of The First assigned to your area
provide specialized Western banking knowledge for a
specialized Western market.

President’s Reception

C. D. Gregg, Western State Bank,
and J. T. Brick, National Bank of
South Dakota, co-chairman.

V'.

Ladies’ Luncheon

Mrs. M. J. Colton and Mrs. C. A.
Lovre, co-chairman.

Registration

Lee Viborg, Union Bank & Trust,
and W. J. Heimerman, Northwestern
National Bank, co-chairman.

Publicity

Art Friday, National Bank of South
Dakota, and Frank Duffy, Union Bank
& Trust, co-chairman.

Y‘

Transportation

G. D. Hansen, Valley National Bank,
and Earl Miller, National Bank of
South Dakota, co-chairman.

New Officer at Lead
Mrs. Arthur H. (Florence) Davis
has been elected vice president of the
Miners and Merchants Bank at Lead,
S. D., by directors at their recent an
nual meeting. Mrs. Davis is also a
director of the bank.
In addition to her duties with the
Miners and Merchants Bank, Mrs. Da
vis is a director of the Bank of Belle
Fourche, the First State Bank at Buf
falo, the First National Bank at Het
tinger, N. D., and the Liberty Nation
al Bank at Dickinson, N. D. She is
active in the affairs of all these banks
and serves on the loan and trust com
mittee of the Liberty National.
Her husband, Arthur H. Davis, is
president of the Miners and Mer
chants Bank.

r
A~

Surplus Increased $ 5 0 ,0 0 0
The First Western Bank at Wall
has transferred $50,000 from undi
vided profits to surplus, increasing
the latter figure to $150,000. Capital
also is $150,000, with $125,000 in capi
tal notes. First Western Bank main
tains a branch at New Underwood.

New Facility at Canistota

The Bank That Never Lets You Down
Northwestern Banker, April, 1968

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

The Canistota branch of the United
National Bank of Brandon, S. D., has
announced the opening of its new
bank building. It is across the street
from the previous location.
The Security Insurance Agency op
erated by Dennis Karsten is also lo
cated in the new building.

75
tired after 39 years with the bank. He
will be succeeded as cashier by D. T.
McNeill, who was head teller and has
been with the bank for eight years.
Mr. Bement, who has been cashier
of the bank for the past 15 years, was
honored by bank officials with a fare
well party at the Bismarck Elks Club.
Mr. Bement plans to travel now that
he is retired.

North Dakota
N E W S
J. H . MUNN

President

W . J. DANER

Westhope

Secretary

Bismarck

R ep ort

on W ashiny ton Trip

w e n t y -f o u r

North

Dakota

bankers and wives went to Wash
T
ington last month for a visit with fed
eral bank supervisory officials and
North Dakota Congressmen. Spon
sored by the North Dakota Bankers
Association, the trip was again a suc
cess as noted in this report from Wil
liam Daner, NDBA secretary:
“We had our usual fruitful discus
sions in Washington this week (24 at
tended, 17 men and seven ladies), and
we were very graciously received, es
pecially by Bill Camp, the Comptroller
of the Currency; Governor Maisel of
the Federal Reserve Board, and Idar
Rimestad, Under Secretary of State.
Your genial secretary was admitted
to practice before the United States
Supreme Court. There was a special
White House tour arranged by the
Congressmen, and we had a most en
joyable reception and dinner at the
Madison Hotel with all the Congres

sional delegation and most of their
staffs.
“The frosting on the cake was when
(after an excellent briefing by Eugene
V. Rostow, Under Secretary of State
for Political Affairs on the world posi
tion of the United States), we at
tended a reception in the diplomatic
reception chambers of the State De
partment. We were able to be part of
a surprise visit by Secretary of State
Dean Rusk, Averill Harriman, Ambas
sador to the United Nations Arthur
Goldberg, and the President of the
United States, who spoke for a few
minutes to the some 150 people there.
Many in our group had a chance to
privately converse with Rusk, Harri
man or Goldberg, and to shake
hands.”

Billings

R. C . WALLACE

Secretary

Helena

Named Bank Cashier

National Park on June 20, 21 and 22.
R. C. Wallace, secretary-treasurer of
the association, has mailed forms to
all banks for hotel reservations and
for convention advance registration.
The third annual golf tournament
will be held on Thursday, June 20, at
Waterton Lake. Final details are not
complete but golfers may want to
make reservations at the Prince of
Wales Hotel in Wterton for Wednes
day night, June 19. Reservations at
Prince of Wales Hotel should be made

As reported in an earlier issue of
David J. Freeberg has been ap
pointed cashier at
the Fi r s t Secu
r i t y Bank, Liv
ingston. He is a
g r aduat e of St.
Mary’s Col lege,
Winona, and for
t h e p a s t five
years has been
associated w i t h
the Federal Re
D. J. F R E E B E R G
serve Bank, Min
neapolis, in the examination depart
ment.
Claude R. Erickson, chairman of the
bank’s board of directors, also an
nounced that Dan K. Edwards, who
has been associated with the First Se
curity Bank for 10 years, has been
elected assistant vice president.
N orthwestern B an k er ,

Planning M ontana Convention
HE 65th annual convention of the
T
Montana Bankers Association will
be held at Many Glacier Hotel, Glacier

Officer Changes at Kuhn

Montana. The individuals promoted,
and their new positions, were: Budd
Taylor, assistant vice president, and
Dean Retz and Alice Olson, assistant
cashiers.

NEWS
President

D. A. Nyquist, assistant vice presi
dent and installment loan officer of
the American State Bank, has an
nounced that Roger Cymbaluk has
joined the bank’s staff as an adjuster
in the installment loan department.

William Jans, chairman of the
board of the Kulm State Bank, re
cently resigned as president of that
institution. Elected to the office of
president was R. L. Jans, who was
previously cashier.
Darwin F. Strobel, who is a member
of the board of directors and just re
cently joined the bank after having
served as cashier of the Stutsman
County State Bank of Jamestown for
the past two years, was elected cash
ier. Elected assistant cashier was Mrs.
Marcella Ogren, who has been teller
of the bank for the past 11 years.
Retires After 39 Years
W.
H. Bement, cashier of the Bank Mrs. Ruth Buerkley was elected tell
of North Dakota, Bismarck, has re er.

Montana

JOHN E. TENGE

Joins American State

through Glacier Park, Inc. An entry
blank for the golf tournament will be
sent later.
The program will follow the usual
pattern with registration on Thurs
day, June 20, business sessions on
Friday and Saturday morning with
adjournment at noon on Saturday.
Complete details on the program will
follow at a later date.

Correction
In last month’s issue it was re
ported that three persons had been
promoted in Havre, but the bank was
not identified as Citizens Bank of

Northwestern Banker, April, 1968

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

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free copy, w r it e o r c a ll Kent Olin, Terry Ryan, Don Ferrei,

that's the bank, for my money /

George A lff or Paul Christensen. No problem is too

D E N V E R U.S.

Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

Colorado News
Wyoming News
J. H . MACDONALD
La Junta
President
Colorado Bankers Assn.

MAX C. ROBINSON
Afton
President
Wyoming Bankers Assn.

Tap Chanyes at Casper Hank
n

OBERT E. BRYANS was elected
R
president of the First National
Bank of Casper at the board of di
rectors’ meeting held in mid-March.
Jackson F. King was elected chair
man of the board and chief executive
officer. Milton Coffman, who was
chairman of the board, has resigned
this position. He will, however, con
tinue to serve as a member of the
board of directors.

J. F. K I N G

R. E. B R Y A N S

With the First National Bank since
1945, Mr. Bryans was reared at Mi
not, N. D., and attended the State
School of Science at Wahpeton, N. D.
He served as a B-24 pilot with the
Eighth Air Force in England during
World War II.
After his discharge, Mr. Bryans
joined the bank as a teller. Later he
managed the installment loan depart
ment and in 1950 was named cashier.
In 1953 he was promoted to vice presi
dent. Mr. Bryans was elected to the
board of directors of the bank in 1957.
He has been secretary of the board
since 1952. In 1959 he was elected ex
ecutive vice president.
Mr. Bryans served as president of
the Wyoming Bankers Association
during the years of 1964-1965. Cur
rently he is state vice president for
Wyoming of the American Bankers
Association. For three years he was
a member of the advisory council—
School of Commerce and Industry—
University of Wyoming.
At the present time, Mr. Bryans is
serving his second term as president
of the Wyoming Industrial Develop
ment Corporation. He has been ac
tive in numerous business, charitable

and social organizations.
The new board chairman, Jackson
King, joined the bank as manager of
the bond department following his
discharge from the Army as a major
in 1946. He was elected vice presi
dent in 1948 and in 1950 was elected
to the board of directors.
Mr. King was elected president of
the First National Bank in 1956 and
has continued to serve in that position
until his current advancement to
chairman of the board and chief ex
ecutive officer. He served on the ex
ecutive council of the Wyoming Bank
ers Association for a number of years.
In 1964, Mr. King was elected to serve
for a period of three years on the
executive committee of the national
bank division of the American Bank
ers Association. Currently he is on
the advisory committee for the Ad
ministrator of National Banks in the
Twelfth Region.

Bankers Association Sponsors
Credit Conferences
The 14th Annual Credit Conference,
sponsored by the Wyoming Bankers
Association, was held recently in Cas
per.
Opening the business portion of the
meeting was C. Edward Shelton, vice
president of the Colorado National
Bank and manager of the Colorado
Bank Americard Center. Mr. Shelton
discussed the pros and cons of the
credit card business. “Credit must be
very liberal since there must be a
large volume to make the program
profitable,” he said. He gave three
requirements for a good credit card
program: strong management, plenty
of money and lots of manpower. Mr.
Shelton said that a credit card pro
gram was not practical for small
banks.
John T. O’Connor, program officer
for the Department of Health, Educa
tion and Welfare office in Denver, ex
plained the new government student
loan program. He said that Wyoming
had not as yet come up to expecta
tions in the granting of guaranteed

student loans since the program was
started in November. Mr. O’Connor
indicated that the department realized
that the lack of incentive from the
banker’s standpoint with regard to
the income derived from the loans
was holding back the program. Ap
proximately $150,000 has been guaran
teed to about 250 students.
The final speaker of the morning
was Paul E. Youmans, executive vice
president of Bosworth, Sullivan and
Company, Denver investment firm,
who discussed interest rates. He said
that long-term interest rates have
gone from 7.6 per cent to 2.45 per cent
in the last 200 years. Mr. Youmans
said that the rate is presently 6.5 per
cent. He told the bankers that con
sidering historical trends and present
economic conditions, the trend at the
present time is down slightly.
The afternoon session opened with
Robert H. Martin, central division,
Rocky Mountain Oil and Gas Associa
tion, discussing Wyoming’s extractive
minerals.
The final session was a panel dis
cussion made up of livestock experts.
Those on the panel were: Bob Frary,
livestock specialist, Extension Service
of the University of Wyoming, who
served as moderator; David R. John
son, vice president, Omaha National
Bank, Omaha; Dan Budd, American
Nat i onal Cattlemen’s Association;
Mick Miller, livestock marketing rep
resentative, Wyoming Stockgrowers
Association; Robert Rierson, project
leader, Western Livestock Marketing
I n f o r ma t i o n Project, and Joseph
Burke, Wyoming Woolgrowers Asso
ciation.
The panel members urged closer co
operation from their bankers in an
attempt to solve their common prob
lems that were of concern on the state
and nationwide level.
It was pointed out that cattle mem
bers within the country are still in
creasing and that the common debt
per head has risen from $80-$85 to as
high as $120-$150 per head.

Secretaries Hear Banker
“Banking in Action” was the theme
selected by the National Secretaries
Association’s sixth annual program
held at Riverton.
Mrs. Georgia Hernandez, president
of the Riverton chapter, said that 585
chapters in the U. S., Canada and
Puerto Rico participated.
Bob Hunter of the First National
Bank of Riverton spoke on the as
pects of the electronic bank of the
future and banking in general.
Leading bank officials congratulated
the NSA for its special banking pro
gram.
Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

C o lo ra d o

News

Worland Bank Remodels

Deposits Up 14 Per Cent

The First National Bank in Wor
land is in the process of remodeling
the interior and exterior of the bank.
The outside will have a modern ap
pearance and entrances will be relo
cated. New lighting and air condi
tioning will be among the features in
side.

Total deposits in all insured com
mercial banks in Colorado gained an
above average 14 per cent during 1967,
according to the Federal Deposit In
surance Corporation.
Deposits in the state’s 217 insured
institutions amounted to $3,446,000,000
during 1967 as compared to the yearend 1966 total of $3,023,000,000. De
posits in all insured commercial
banks in the United States increased
from $352 billion at the end of 1966 to
$395 billion at the end of 1967, which
was a 12.2 per cent increase.
According to the report, time depos
its accounted for most of the growth.
The increase in time deposits amount
ed to 16 per cent which was one per
cent above the national average. The
demand deposits in Co l o r ado in
creased 12.3 per cent as compared to
the national average of 9.8 per cent.
Loans extended by Colorado banks
rose 10.3 per cent from 1966 to 1967
compared with an 8.4 per cent gain
for the entire country.
Investments of insured commercial
banks, the FDIC said, increased 18.7
per cent in Colorado and 18.2 nation
ally.

Named to Development Board
Rudolph Loss, vice president and
cashier of the Bank of Commerce,
Sheridan, has been elected a director
of the Wyoming Industrial Develop
ment Corporation.

Cheyenne Promotions
Two officer promotions were an
nounced last month by Robert J. Sor
ensen, president of the American Na
tional Bank of Cheyenne. Nelson R.
Murphy was advanced from vice pres
ident and senior trust officer to senior
vice president and senior trust officer.
Jack W. Steinke was advanced to
assistant vice president and trust offi
cer. Previously he was assistant vice
president and assistant trust officer.
Mr. Murphy joined the staff in 1947
and has been graduated from several
graduate banking schools. Mr. Steinke
joined the bank in 1957.

F o in r n d o N e w s
High Court Allows Charter
Harry Bloom, state banking com
missioner, said that a charter for the
Bank of Durango, formerly the Turn
er Industrial Bank, will be issued
shortly in compliance with a State
Supreme Court order reversing the
state banking board’s refusal of the
application.
The court ruling stressed that in
considering charter applications, the
banking board may not emphasize the
protection of existing banks.
Justice Edward C. Day said that the
purpose of the statutory requirement
that an applicant show a “public
need” for a new bank “is not to pre
vent new banks from entering the
field, even though existing banks have
been rendering adequate service.”
Durango has two commercial banks,
the Burns National Bank and the
First National Bank.
Richard W. Turner, president of the
Bank of Durango, said in early March
that it would be at least 60 days until
the conversion to commercial bank
status is complete. Mr. Turner said
that the bank has applied for Fed
eral Deposit Insurance Corporation
coverage of its present $2.5 million in
saving deposits.
Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

Increases Surplus $ 5 0 0 ,0 0 0
The Exchange National Bank, Colo
rado Springs, has increased its sur
plus from $2,500,000 to $3,000,000,
which will allow an increase in the
legal lending limit to a single cus
tomer from $350,000 to $400,000, ac
cording to O. D. Olson, president of
the bank.
The addition gives the bank a total
of $1,000,000 in capital stock, $3,000,000
in surplus and approximately $400,000
in undivided profits and reserves.

Gray Elected Director
John W. Gray has been elected to
the board of directors of the Colorado
Springs National Bank. He replaces
Herbert G. Sinton who has asked for
an inactive honorary status on the
board.
Mr. Gray is president of the Sinton
Dairy Company, and is a director of
the National Milk Industry Founda
tion. He was also first president of
the Colorado Springs Industrial Board.

Bank Post to Anderson
Robert J. Anderson has been elect
ed vice president and cashier of the
West Greeley National Bank, Greeley,
according to Roy Schmidt, president.
Mr. Anderson has served as cashier
of the bank since it opened in 1963.
Prior to that he was head teller of
the Greeley National Bank for two

A n n i v e r s a r y F il m

MICROFILM LANDMARK—Van B. Phil
lips, dir. of marketing administrative serv
ices, Eastman Kodak Company, and presi
dent of the National Microfilm Association,
watches Richard Rosse, director of news
operations for the Mutual Broadcasting
System inspect a length of 16 mm. Recordak microfilm at Mutual radio head
quarters in New York City. Mr. Rosse
interviewed Mr. Phillips on the growth of
the microfilm industry which will celebrate
its 40th anniversary on May 1, 1968. The
interview will be broadcast over the 250
stations throughout the United States
affiliated with the Mutual radio network.

years. Before coming to Colorado,
Mr. Anderson was a teller at the
United States National Bank of Oma
ha for five years.

Open Englewood Building
Continental National Bank recently
moved into its new 10-story building
in the Englewood shopping center. It
is the tallest building in the area.
Formal dedication of the building was
scheduled for the afternoon of April
6, with U. S. Rep. Don Brotzman cut
ting the ceremonial ribbon of dollar
bills with the $100,000 diamont-set
shears made by Argenzie Bros., Den
ver jewelers.
The bank officers, directors and
staff have been hosts at a series of
open houses for customers and the
public preceding the formal opening.
The bank is occupying about one-third
of the building at present, and nearly
80 per cent of the remaining space has
been leased to various firms for occu
pancy.
Design of the bank incorporates
Diebold’s closed-circuit TV teller sys
tem. The bank vault has 12-inch re
inforced concrete walls encased in a
19-ton steel cage. The door of the
vault weighs 3.5 tons.
Continental National was organized
in 1951 as the Englewood State Bank.
One of the original incorporators was
Winston S. Howard, who was vice
president.
Mr. Howard continues
with the bank today as chairman of
the board. Robert J. Frank is presi
dent of the bank. Approximately 95
per cent of the bank’s stock is now
owned by the Los Angeles-based Westtern Bancorporation.

C E N T R A L 'S A R T B R ID G E W A T E R
pays a visit to H. J. Bleakley, Chairman of the Board and President of The Peoples
Bank of Aurora, Colorado, one of our valued correspondent customers.
Knowledge and experience are two good reasons the Central serves as city
correspondent for more than 300 area banks.

WHAT'S HAPPENING
IN DENVER

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

•

Denver Automobile Show— April I through 6— Denver Coliseum.

•

On Stage— W a lte r Slezak in "The Lion in W in te r"— A pril 3 through 6— Auditorium Theatre.

•

Ice Capades— April 24 through 28— Denver Coliseum.

•

Denver Bears Baseball— April 17, 18: Tulsa; April 19 through 21: Oklahoma; April 22 through 24:
Indianapolis.

Northwestern Banker, April, 1968

We’re not just sure what color the broadloom
is in State Rooms 1 and 2 . . . our hospitality
suite in the Cornhusker Hotel . . . but there’s
a RED CARPET WELCOME waiting for you
when you drop in during the Nebraska Bankers
Convention in Lincoln. We hope you’ll join us
for U.S. hospitality.. . Sunday in the ballroom,
Monday in State Rooms 1 and 2
M e m b e r , Federal Dep os it In s u r a nc e C or p o ra ti on

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

Xeh raslía B an kers A ssoeiation
71st Annual Convent inn
Cornhusker Hotel
May 5, 6, 7, 1968
M . R. M O R G A N

H. G R A M A N N , JR.

E. W . L Y M A N

H. V. O S T E R B E R G

HE Cornhusker Hotel will be headquarters for the 71st Annual Ne
braska Bankers Association Convention to be held May 5-7 in Lincoln.
An excellent program and schedule of activities has been arranged for
the large number of bankers and their wives expected to attend the conven
tion.
The first scheduled date, Sunday, May 5, will be devoted to meetings of
the executive council and scheduled official dinners. On the following day,
M. R. Morgan, NBA president, will call the meeting to order following the
opening noon luncheon. Mr. Morgan is president of the First National Bank
in Elwood. Working with him this past year as vice president is Henry
Gramann, Jr., executive vice president of the Adams State Bank, Adams. Mr.
Gramann is scheduled to move up to president at this convention. Edward
W. Lyman, president of the United States National Bank, Omaha, has been
serving as treasurer of the NBA. Harris V. Osterberg is NBA executive vice
president, and William H. Osterberg is NBA executive manager.
The complete program follows:

Sunday, May 5

W . H. O S T E R B E R G

W . A. S T R A U S S

P.M.
2:00-9:00 Registration—Mezzanine.
2:00 Executive Council Meeting—State Suite 3.
5:30 Social Hour—Room 933, Executive Council and Past Presidents.
5:30 Social Hour—Georgian Room, Wives of Executive Council and Past
Presidents.
6:30 Executive Council Dinner—State Suite 3.
6:30 Past Presidents’ Dinner—State Suites 1 and 2.
6:30 Dinner—Georgian Room, Wives of Executive Council and Past Presi
dents.
Monday, May 6

A.M.
8:30
9:00
10:00
10:00
Noon

C. M. H A R D I N

J. J. S A X O N

C. C. B Y E R S

C. H. W A L K E R

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Federal Reserve Bank of St. Louis

Breakfast—Georgian Room, NBA County Representatives.
Registration—Mezzanine.
Committee on Nominations—Room 200.
Committee on Resolutions—Room 220.
Luncheon Session—Ballroom, Delegates.
Presiding—M. R. Morgan, president, Nebraska Bankers Association, Inc.,
and president, First National Bank, Elwood.
Special Guest—C. R. Haines, Director of Banking, State of Nebraska,
Lincoln.
President’s Address—Mr. Morgan.
“A Banker’s Part in Area Development”—W. A. Strauss, chairman and
president, Northern Natural Gas Company, Omaha.
“Nebraska on the Move”—Dr. Clifford M. Hardin, chancellor, The Uni
versity of Nebraska, Lincoln.
Report of Committee on Nominations.
Election of Officers.
Report of Committee on Resolutions.

P.M.
12:30 Ladies’ Luncheon—New Elks Club. Buses will provide transportation
from the hotels to the Elks Club and back.
5:30 Social Hour—Cornhusker Hotel Ballroom, Delegates and Ladies.
Hosts—First National Bank & Trust Company and National Bank of
Commerce in Lincoln.
(Turn to next page, please)
Northwestern Banker, April, 1968

N ebraska

News

N ebraska Convention l*rotf vam

G R O S S -F E IB E L

n Bank Building
li

(Continued from page 81)

flhpr.k I ist

7:00 Convention Banquet—Pershing Municipal Auditorium, 15th and M.
Dinner Music—Bill Albers Orchestra.
Installation of Officers.
“Get Off Your Launching Pad”—Dr. Carl C. Byers, educator, humorist
and author. Member speakers staff of General Motors Corporation,
Cleveland, Ohio.

Tuesday, May 7

A.M.
7:30 Breakfast—University Club, 128 N. 13th Street, Delegates and Ladies,
and Nebraska Club, The Graduate School of Banking, University of
Wisconsin, graduates and students.
Hosts—First National Bank & Trust Company, National Bank of Com
merce, Lincoln.
Presiding—Jay F. Bordewick, president, Nebraska Club, and vice presi
dent, The United States National Bank, Omaha.
9:00 Registration—Mezzanine.
9:30 Convention Session—Ballroom, Cornhusker Hotel.
Presiding—M. R. Morgan, president, Nebraska Bankers Association, Inc.
Election—The American Bankers Association.
Presiding—Dale E. Walkenhorst, A.B.A. state vice president; executive
vice president, First National Bank, North Platte.
N.B.A. Treasurer’s Report—Edward W. Lyman, president, The United
States National Bank, Omaha.
Address—James J. Saxon, Saxon, Maguire & Tucker, Washington, D. C.
“The Washington Financial Scene”—Dr. Charls E. Walker, executive
vice president, The American Bankers Association, New York.

sizes, finishes and architrave designs.

y
)-»•

y
-A

P.M.
12:30 Luncheon—Ballroom and Georgian Room, Delegates and Ladies.
□

□

N ebraska Convention C om m ittees

DRIVE-UP WINDOWS — Flush and bay
designs with service equipment to
meet any requirement.

In charge of arrangements for the
71st annual convention of the Ne
braska Bankers Association at the
Cornhusker Hotel in Lincoln, May 5-7,
are these Lincoln bankers on the
general convention committee:
Burnham Yates, president, First
National Bank and Trust Company;
William C. Smith, executive vice pres
ident, First National Bank & Trust
Company; Glenn Yaussi, chairman,
National Bank of Commerce Trust &
Savings, and Paul J. Amen, president,
National Bank of Commerce Trust &
Savings.
Serving with these men in arrang
ing for various functions of the con
vention are the following committees.
The first listed in each committee is
chairman.

SAFE DEPOSIT BOXES — Standard or
custom units to fit any size space.

DEPOSITORIES— A variety of designs
and finishes complete with chute and
receiving chest.

s r

F. E. DAVENPORT & C O.
2066 Farnam St., Omaha, Nebr.
□ Vault Doors □ Drive-Up Windows
□ Safe Deposit Boxes □ Depositories

j
■ Citv

State

Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

Entertainment

1
I
I
I
I
I
1
I
i

Roy Yaley, assistant vice president,
National Bank of Commerce Trust &
Savings; Dale M. Shoemaker, vice
president, First National Bank &
Trust Company; Robert W. Johnson,
assistant vice president, First Nation
al Bank & Trust Company.
Breakfast

Lester Curran, assistant vice presi

dent, First National Bank & Trust
Company; Lyle F. Stoneman, vice
president, First National Bank &
Trust Company, and Robert S. Hinds,
vice president and senior trust officer,
National Bank of Commerce Trust &
Savings.

Banquet

(Husband’s bank and title listed
following the name.) Mr. and Mrs.
L. E. Alford, vice president, National
Bank of Commerce Trust & Savings;
Mr. and Mrs. Max Schneider, vice
president, First National Bank &
Trust Company; Mr. and Mrs. A. S.
“Chico” Chaves, vice president, First
National Bank & Trust Company; Mr.
and Mrs. Winton W. Buckley, vice
president, National Bank of Com
merce Trust and Savings; Mr. and
Mrs. James F. Nissen, vice president
and manager-loan division, National
Bank of Commerce Trust and Sav
ings; Mr. and Mrs. Herman A. Brockmeier, vice president, National Bank
of Commerce Trust and Savings.

Hostess Committee

Mrs. Roger L. Cunningham, chair
man.
4

We team up to answer investment questions.
r

W e think you'll agree that a team system is the best way
>

to serve your investment needs. When you draw on the
experience of the professional banking and investment
team at First National of Omaha, you are assured
competent counsel. Co-captains on our investment team
(with over 50 years' experience!) are shown above:
at left, Bill Feser, Vice President; standing, Alan Schulz; and
Frank Lawson, Jr., Trust O fficer. For investment counseling,
advice on bank portfolios, and for safekeeping — team

FIRST
NATIONAL
BANK
OF
OMAHA

up with First National Bank of Omaha. You'll find we
have a winning way.
Always the FIRST to Serve You.

)

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Federal Reserve Bank of St. Louis

MEMBER F.D.I.C.

Northwestern Banker, April, 1968

Omaha News

o n s t r u c t io n

of a contempo

rary styled walk-in, drive-in fa
C
cility is scheduled by The Omaha Na
tional Bank to begin tentatively by
mid-summer. The new building will
be erected on the northeast corner of
19th and Dodge Streets, four blocks
from the main building, and awaits
only approval of the Comptroller of
the Currency.
John M. Shonsey, executive vice
president, and E. Stanton Miller, sen

ior vice president, stated at a news
c o n f e r e n c e that the new facility
should be open by mid-December.
Along with Nels Latenser of the ar
chitectural firm, they showed news
men an artist’s sketch and three di
mensional model.
The structure will be cast marble
aggregate concrete similar to that be
ing used on the bank’s new main
quarters now under construction.
Form will be sculptural and flowing

.FEATURES of Omaha National’ s proposed walk-in, drive-in are explained by John M.
Shonsey, exec. v.p. of the bank.

MAHA
Ri Ti wir*
NTING
□ MPANY

;<
•
|

n o years o f service
Servicing the Mid-States Area
Since 1858

BANK SUPPLIES
Snap A p art Forms
Continuous Forms
Bank Forms
O ffice Supplies
O ffice Furniture

1301 FARNAM ST. — OMAHA, NEBRASKA — PHONE 342-7123
Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

as a complement to the rigid geomet
ric forms now in the downtown area,
according to the architect, John Latenser & Sons, Inc, Interior fixtures
will be treated with the same “carvedfrom-stone” theme with a counter
point of paneled and draped surfaces.
Entry to the building will be across
a bridge spanning a dry moat with
graded boulders and landscaping in
the manner of a Japanese garden.
The walk-in structure will be con
nected by a tunnel to three all-weath
er drive-in windows. An additional
four windows will be installed in the
Capitol Plaza Building, directly north
of the facility, upon completion of an
interstate highway ramp.
* * *
The First National Bank of Omaha,
the oldest national bank from Omaha
west, will be one of the first banks in
the nation to get one of the new Cen
tury 200 computers from National
Cash Register Company. The Cen
tury 200 is an advanced “random-ac
cess” system designed to improve
both customer services and internal
operations.
John R. Rauritzen, chairman of the
executive committee and president of
the bank, said the Century computer
will more than double the processing
speed and power of the two present
systems in use by First National. He
said, “Consequently, we will be able
to provide broader services to individ
ual depositors, corporate customers,
and correspondent banks — services
which were technically impractical in
the past.”
Mr. Lauritzen said this will include
“more pertinent, meaningful informa
tion for management,” which type of
information will also be available to
correspondent banks and corporate
customers. At some time in the fu
ture this same analytical service will
be available in all probability to indi
vidual depositors.
All bank functions except trust
work and general ledger are now han
dled on two NCR 315 computers. Most
of these applications also are proc
essed for many correspondent banks.
The random-access feature of the
new computer will give any loan offi
cer, for example, an instant print-out
of a loan applicant’s relationship with
the bank. This same random-access
design also permits a “mixed-item”
update during the bank’s internal
processing.
* * *
Edward W . Lyman, president of
the United States National Bank, con
ducted the annual luncheon meeting
of some 175 Eagles of the Mid-Amer
ica Council of Boy Scouts last month.
Mr. Lyman was selected to be chair-

W e re right on top of the job
No bank is closer to the livestock industry
than we are. W e have only to swivel around
in our chair to see the world’s largest live
stock market in action. It’s natural that
much of our work involves the livestock in
dustry. This experience can be of great
help and value to your bank when you have
livestock business transactions of any kind.
Remember, we “ live” with the business
every day. Call our correspondent bank
department any time.
Member of the Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1968

N ebraska

News

President E. W. Lyman of IT. 8. Natl, and
Eagle Scout guest.

man of the 1968 luncheon by the MidAmerica Council. Each year a differ
ent leader of the area’s business or
industry is called upon to preside over
this most important event in the
scouting year.
As chairman, President Lyman pro
vided arrangements for the affair
which included a reception, special
guests, and a tour of Strategic Air
Command facilities. Guest speaker
was the Rev. Robert S. Alward, senior
minister of the Countryside Commu
nity Church, United Church of Christ,
Omaha.

The luncheon was held in the Offi
cers’ Club at S.A.C.’s Offutt Air Force
Base near Bellevue. Neb.
The Mid-America Council of the
Scouts includes 37 counties in South
west Iowa and Northeast Nebraska,
and has a membership of some 33,000
scouts.
*
*
John R. Lauritzen, chairman of the
executive committee and president of
the First National Bank of Omaha,
has been named as general chairman
of this year’s Heart of the Midlands
United Appeal campaign. His appoint
ment was announced by Richard L.
Coyne, president of United Commu
nity Services, which conducts the an
nual campaign.
Mr. Lauritzen, in addition to being
president of the First National Bank
of Omaha, is also president of the
Omaha Bankers Association.
At the present time, he is a member
of the board of directors of the Better
Business Bureau, Joslyn Memorial
and the Omaha Economic Develop
ment Council. He is also chairman
sponsor of the National Park and
Recreation Association for Nebraska.
* * *
Ray Slizewski, vice president, Stockyards National Bank, was honored by
the Q Street Merchants as the out
standing member of the organization
for 1967. Mr. Slizewski, a past presi
dent of the merchants and a present
board member, was awarded this hon
or based on his activities in the organ
ization and in the community. He is
also president of the South Omaha

Gene Eppley Boys’ Club, director of
the Omaha Transit Company, secre
tary of the Citizens Advisory commit
tee and board member of the Social
Settlement.
* * *
An office on the ground floor of the
City National Bank Building was es
tablished recently by Piper, Jaffray &
Hopwood, a New York Stock Ex
change firm with its major offices in
Minneapolis and St. Paul, Minn.
Lee Williams and Harold Hultman
have been appointed co-managers.
Both men were former account exec
utives and officers of another Omaha
investment firm.
* * *
The Stockyards National Bank has
recently had on exhibit the paintings
of Mr. and Mrs. Ray Whiting. These
paintings consisted of oils, water col
ors and acrylics, and concentrated on
midwest scenes.
Mr. Whiting was born in Albion,
Neb., and studied art at the Chicago
Academy of Fine Arts and the New
York Art Students League in New
York City. Among the Whiting pic
tures on display were “Rural Soli
tude” and one entitled “ Sandhills Wa
ter Hole.”
The exhibit was a tremendous suc
cess with customers making special
return visits to view the paintings.
The bank hopes to continue bringing
exhibits to its customers periodically
to create and maintain interest in the
cultural affairs of the community.

Remodel Vault at Firth

MUNICIPAL AND CORPORATE BONDS
LISTED STOCKS
UNLISTED AND LOCAL STOCKS

The State Bank of Firth has remod
eled its bank vault and installed an
additional 100 safe deposit boxes to
accommodate new bank accounts. Ro
land F. Beach is bank president and
Gerald M. TeKolste is executive vice
president.

Orders Executed on All Principal Exchanges

See You
in
Lincoln
for the
Nebraska
Bankers

C H IL E S ^ C O M P A N Y

Convention

MEMBER, MIDWEST STOCK EXCHANGE
R IC H A R D

412 Farm Credit Building, Omaha, Nebraska 68102
Phone 346-6677 (Area Code 402) Teletype 402 348-1040
Other Offices Located in

LINCOLN
Nebraska

#
*

Northwestern Banker, April, 1968

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

LEXINGTON
Nebraska

N EW LIN

BANK INVESTORS
c/o

VERMILLION
South Dakota

3521

Io w a R ealty
B e a v e r A ven u e

Des Mo ines, I o w a

Phone 5 1 5 — 277-6 211

M e e t R o b e rt K a h m
Roger Cunningham

...a man behind
the men you know1
at the t

Lyle Stoneman

Robert Kahm, Trust Officer, is a highly qualified
specialist in handling the multitude of administra
tive duties associated with Pension and ProfitSharing Plans. He has a particular talent for
detail...knows the government regulations and
how to apply them. He’s the very man you would
choose to handle the administrative functions
attendant to your Pension and/or Profit-Sharing
Plan.
Bob has 12 years of banking experience... 10 of
which have been devoted to specializing in the
administration of Pension and Profit-Sharing
Plans. He has completed numerous A.I.B. courses
and is a graduate of the National Trust School at
Northwestern University. Bob is extremely active
in Boy Scout work and is currently a member of
the Regional Scout Committee. He is also a
member of the Finance Committee at his
church. Bob likes to read, and confesses to
being something of a hi-fi ''bug” ...
hobbies he shares with his wife and
three children, aged 14, 12 and 10.
Sincere and dedicated to his job, Bob
is a man of action who gets things
done and done right.

A. S. Chaves

Dale Shoemaker

Lester Curran

F I R S T

N A T I O N A L

B A N K

& T n u s t C o m p a n y of Lincoln
12thandNStreet •Lincoln, Nebraska
Member: FD.I.C.

Robert Johnson

■

William Edgecoml

wmsm
■m

mmm
Hi......81

■

Max Schneider

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

Northwestern Banker, April, 1968

N ebraska

News

lìroup P residen ts
Farm and iiasiness Outlook
RESIDENTS of the six Nebraska
P
Bankers Association groups report
the following crop, livestock and busi
ness conditions for
areas at this time:

the

er to get a head start on their tillage
program.
GROVE NELSON
President
Bank o f Millard
Millard
President
Group 2

respective

W IL LIAM B.
B R AN DT
Secretary and
General Counsel
First National Bank
Unadilla
President
Group I

ENERAL business c o nd i t i o ns
G
could best be described as a little
sluggish in the Group I area. We
have heard a few complaints in this
regard. Everyone seems to be going
slow in the expansion area. There
is more money on deposit than a year
ago, however, and loan demand is
brisk and I think even stronger than
a year ago during the pre-planting
period.
Crop conditions look good at this
time. Our top soil is quite dry but
due to an abundance of moisture in
most places last summer and fall, sub
soil moisture is good. A number of
farmers in this area are taking advan
tage of the unseasonably warm weath

ther depression of the price of corn
in the immediate future. Some of the
profits to the feeders will be at the
expense of the grain farmer.

ENERAL business conditions are
G
good. Merchandise is moving.
With the increase in volume to be an
ticipated, gross income and profits for
the local retailer should be up for
1968.
Farmer-feeders are enjoying a good
profit in fat cattle now being mar
keted. Favorable weather conditions
through the winter have made pos
sible gains of three pounds per day
and up. Price of corn has made for
cheaper cost of grain. Cattle are
bringing approximately $2 per hun
dredweight over first cost, a good mar
gin. All factors have contributed to
profits in excess of what might rea
sonably be expected.
On the other hand, with the price of
corn less than $1 per bushel and much
of the harvested corn carrying high
moisture, we may see a problem as
warm weather approaches. Many
farmers hoping for a better price are
not going to find a market for their
wet corn before the deadline. We
can expect spoilage and resulting fur-

Specializing in
Nebraska Municipal Bonds
Visit Our Lincoln Office
During the Convention
Lincoln Building, 10th & "O” Street

ir st

ebraska

S ec u r ities,In c .

M e m b e r N e w Y o rk S to c k E x c h a n g e
a n d o th e r
P rin c ip a l S to c k a n d C o m m o d ity E x c h a n g e s
LISTED AND UNLISTED STOCKS/ CORPORATE AND MUNICIPAL BONDS / MUTUAL FUNDS

NEBRASKA
Lincoln

O m aha

H astings

477-9221 341-1500 463-3141

Northwestern Banker, April, 1968

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

IOWA
Grand Island

382-0746

Sioux City A tlan tic

252-4524 243-5500

C edar Rapids

366-6415

JAMES B.
RO SSITER
President
First National Bank
W althill
President
Group 3

E HAVE experienced one of the
driest winters on record. The
extremely dry winter has made the
feed grain sign up larger in this area
than last year. Much spring mois
ture is needed before field work will
begin in earnest. Pastures dried out
early last summer and they will need
an abundant amount of moisture
throughout the entire spring and sum
mer. Hay consumption was at a min
imum this winter as stock fields were
never covered. Farm sales in this
area have been quite numerous this
winter. Several auction firms haven’t
had an open date for months. This is
bad both for the farmer and the small
town businessmen. Economists state
for every 12 farmers that sell out in
one area, one business closes its doors.
Small towns are finding it almost im
perative to locate industry for the
area to survive the loss of so many
farmers.
There is still some corn that must
be moved in the near future due to
its high moisture; although most of
the corn in this area that was planted
during the normal planting season
last year is of good quality and will
keep through the summer. A large
amount of corn has been sealed hop
ing for a summer price increase of 20
to 25 cents. With springlike weather
coming early this year, some fertiliz
ing has already begun.

BILL SLOCUM
Assistant
Vice President
Franklin
State Bank
Franklin
President
Group 4

HE Group 4 area farming in 1967
T
had a mixed result. Crops for the
most part were fairly good with dry
land milo the exception. Early rains
produced a very good stand with a
poor root system. Lack of summer

J
K

ORCHIDS for ladies attending the
Nebraska Banking Convention are
a Schweser custom — as tradition
al as . . .

SERVI

This S ch w eser team invites your inquiry in m atters of M unicipal and
Corporate Securities.

Patrick H. Rensch
V . P., Gen. Counsel

L. L. Lawrence
President

H arry E. Coe

Robert E. Roh
Vice Pres.

W illiam M arch
V . P., Sec. Treas.

Frank E. W illiam s
Exec. V. P.

C. W . Poore, Jr.

Now available for you and your customers
a helpful FREE booklet —

"HOW YOU CAN PROFIT FROM
TAX EXEMPT BONDS"

R O B E R T E.

SCHWESER CO.
INVESTMENT

BANKERS

•

UNDERWRITERS

208 South 19th Street, O m aha, N ebraska

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

M U N IC IP A L

CORPORATE

SECURITIES

A lbuquerque, N e w Mexico

Northwestern Banker, April, 1968

N ebraska

News

and fall moisture produced a head
without grain. A fall in grain prices
through the year has resulted in a
larger than normal carryover of grain.
L i v e s t o c k pr i c es have made a
marked recovery. With the lower
feed cost and higher market prices,
profits have shown a good increase.
Proper management in feeding still
shows its importance. Replacement
cattle prices and grain cost showing
an increase point to a small margin
of profit in the future.

JAMES H.
O LIVER
President
The Ravenna Rank
Ravenna
President
Group 5

HE conditions for the banking in
T
dustry in Group 5 were favorable
in 1967 and most of the banks re
ported a growth in deposits and good

Lack of moisture during the winter
makes us look to spring rains with
hope. More land under irrigation
again for 1968. Wells are being
drilled at a steady rate.
The wheat looks like it will again
be very spotted. A large number of
acres have been damaged by the green
bug. Some farms to the extent of 80
to 90 per cent.
The Vietnam war and inflation still
seem to hold the key to general busi
ness conditions.
earnings. Most of the growth was in
time deposits, however some banks
reported an increase in demand depos
its. Demand for credit remains strong
but varies in the area. The western
portion is a little easier than the east
ern where they are experiencing a
college and industrial growth.
The agricultural situation is a twoway affair. Livestock prices have
been relatively good for the past six
months and the weather has been ex
cellent for feeding and wintering.
However, the grain picture is not as
favorable, prices have been low, qual
ity of grain is below average and most

farmers are sealing or holding for
some price increase. It is question
able whether they can hold long
enough for any appreciable change
due to some reported deterioration
already and the warm season has not
arrived.
Crop prospects are rather dim at
this time. There has not been any
measurable amount of moisture since
last fall and the wheat is reflecting
dry conditions. The pastures will be
slow with no spring moisture. The
wheat has also been hit by green
bug in some areas which has caused
considerable damage. Due to the
weather, many operators have put
down irrigation wells, even in the
rolling country, and are using sprink
ler systems. The last count in our
area showed 290 wells in four town
ships. The county ASC office also re
ported approximately 1,900 farmers
out of 2,100 had diverted an average
of 38 per cent of their eligible acres.
Most bankers in our group feel they
will have adequate money for their
good customers but are concerned
about the future of agriculture and
the small country town.

MEL ADAM S
President
Keith County Bank
Ogallala
President
Group 6

1222 P St., Lincoln, Nebraska 68501

VEN though several communities
in the Nebraska Panhandle enjoy
E
incomes generated by various types of

We’ll Be Quiet About It
B u t.

We'll be at your door to say HELLO
each morning you're at the
NEBRASKA BANKERS CONVENTION
with the
WALL STREET JOURNAL
to keep you current on the
Financial World.
For Service or Information
ANY OTHER TIME OF THE YEAR,
Call and say HELLO to us at

Lincoln
475-4571

K earney
234-2251

OMAHA, NEBRASKA
4 0 2 -342 -72 6 2

Sioux City
2 52 -1238

Northwestern Banker, April, 1968

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

C larinda Representative
5 42 -2437
Council Bluffs
323-7101

manufacturing plants employing up
to 500 or more employees, our local
economy is and always will be ex
tremely sensitive to the productivity
of our agricultural industry. Mois
ture conditions vary greatly through
out Western Nebraska making wheat
stands spotty and dry fields suscepti
ble to the early spring winds. Some
of the wheat that didn’t stool last fall
is just coming up and will need mois
ture soon to regain its normal growth.
Potential wheat yield forecasts for
our area are for near normal produc
tion, but expected to be below the
bumper yields experienced the last
two harvests. Depressed wheat mar
kets along with corn and other feed
grains which are selling below last
years prices are taking their toll with
the small Nebraska farmer, as evi
denced by the numerous early spring
farm sales.
Cattle, hog and sheep producers

YOUR
SIGHTS

•

_____
r----------------- ---- ----

». -■■■,

FOOD
REFRESHMENTS
NBC
HOSPITALITY
p through
the “ hole in
the wall” to the
Lincoln Room
whenever meet
ings are not in
session during the
NBA Convention . . .
NBC’s job special
ists will be waiting
to welcome you with
food, refreshments and
a survey of the remodel
ing in process at NBC.

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

The
NBC R oo m
: opens Sunday, :
:
M a y 5,
:
V
a t 4 : 0 0 P .M . /

M e m b e r F D IC

National Bank
of Commerce
Main Bank 13th & O S ts. / Patio O ffice lO th & O S ts. / Lincoln, Nebraska

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

Northwestern Banker, April, 1968

N ebraska

News

have been pleased at the demand for
livestock over last year. With the ex
ception of the cow market, cattle
prices have been considerably above
last year and are expected to remain
steady throughout the year. Hog and
sheep prices seem to be strenghtening
as the year progresses. Barring great
increases in the feed costs, with few
e x c ept i ons , margins in livestock
should be adequate throughout 1968.
The biggest change on the local ag
ricultural scene is the amount of dry
land acres being converted to irriga
tion. Abundance of underground wa
ter, ability for more diversification of
crops, higher potential return on in
vestment per acre and the elimination
of crop failure due to no moisture are
convincing enough to today’s farm
businessman to warrant this sizable
capital outlay. As a result, more and
more acres are being converted to
sugar beet raising from other types of

crops, and the total yields and acre
ages of beets, beans, corn and alfalfa
are annually on the increase.
Interstate 80 is nearing completion
as it winds its way up the South
Platte River splitting many farm
units and putting hundreds of irri
gated acres out of production. The
more fortunate land owners owning
land at commuity intersections along
the interstate route are enjoying a
tremendous increase in the price of
their land. Where they once farmed
are now filling station and motel com
plexes. With increased interest in ir
rigation and farmers attempting to
reinvest interstate funds, land prices
have reached an all time high.
Local banks are experiencing higher
and higher loan to deposit ratios. On
the average, commercial and indus
trial loans are up 20 per cent over last
year. Bankers are attributing this to
higher operational costs, loan carry

overs and the scarcity of funds from
the long-term lenders. On the other
hand, keeping installment credit to
tals above last year is seemingly more
difficult. Both time and demand de
posits are up over the previous period,
which has helped relieve the pressure
of a strong loan demand.
In the business sector, retail sales
totals are up over last year although
consumer product selectivity is more
prevalent, especially items with a
large price tag. Many businessmen
are complaining profits year to date
are thinner, giving increased wages
and the “new state income and sales
tax” as the reason.
As we near mid ’68 most local busi
nessmen, farmers, and ranchers are
confident this year will be a better
year than 1967 and while they are not
sure what the future holds, they con
tinue to expand as fast as time, labor
and capital permit.

Changes at Wayne Bank

FOR A

SOUND
INVESTMENT
...T IM E W IS E ...
WE INVITE YOU
John Van Horne

Edwin Van Horne

TO SUITE 416-19

CORNHUSKER
HOTEL-LINCOLN
NEBR. BANKERS
A S S O C IA T IO N
C O N V E N T IO N

MAY 6 - 7

Philip A. Lorenzen

In v estm en ts,
FARM CREDIT BLDG.

OM AHA

Michael Van Horne

In c .
PHONE 345-2241

OVER A HALF-CENTURY OF BANKERS CONVENTIONS
And GROUP MEETINGS

Northwestern Banker, April, 1968

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

The name of the State National
Bank of Wayne has been changed to
The State National Bank and Trust
Company of Wayne. Harold E. Hein,
who has been vice president and trust
officer, has been elected chairman of
the board and trust officer. As chair
man he succeeds the late Herman
Lundberg.
Henry E. Ley continues as presi
dent and trust officer.

M. W . Dunlap Gets 50-Year
Nebraska Banking Award
M. W. Dunlap, president of the
Farmers State Bank of Douglas, and
of several other Dunlap managed
banks, was presented the 50-year Ne
braska Banking Award plaque at a
dinner held at the University Club in
Lincoln, Neb., on March 14. Mr. Dun
lap started his banking career in a
bank at Tecumseh, Neb., in 1917 and
has been active in Nebraska banks
ever since. In addition to his Ne
braska banking interests, he is also
associated with his son, Paul Dunlap,
of Red Oak, Iowa.
Officers of the Dunlap managed
banks were present at the Nebraska
Bankers Award presentation and Mr.
Dunlap also received a watch in ap
preciation for his services.
Mr. Dunlap is the father of Jay L.
Dunlap, president of Union Bank &
Trust Company, Lincoln, Neb.; Don
L. Dunlap, president of Lancaster
County Bank, Waverly, Neb.; Paul
Dunlap, president of Houghton State
Bank, Red Oak, Iowa, and G. A. Dun
lap, president of Farmers & Mer
chants Bank, Milford, Neb.

"There's a man here to see you
with a bright idea from Commerce Trust."

Trust the man from Commerce Trust to come
bearing bright ideas in banking. Like Jim Bartels,
here, with the bright idea of Direct Leasing.
Commerce Trust’s new Direct Leasing department
has been helpful to many of our correspondents.
Your customer can lease plant equipment direct and
keep his working capital intact while modernizing
his operation for more profits to come. Commerce

Trust is first in the area with this bright idea.
Or our automated transit. That’s another bright
idea from Commerce Trust. The Federal Reserve
System accepts our computer proved and qualified
letters until 6:00 PM, for the fastest possible han
dling of your transit items.
Team up with Commerce Trust and take advan
tage of their bright ideas!

The wonderful world of banking Is yours at

COMMERCE TRUST RANK
Kansas City, M issouri

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

Member Federal Deposit Insurance Corporation

Northwestern Banker, April, 1968

N ebraska

News

You
WillSee Them at the 71st
Annual Nehrushu Convention
HE following metropolitan bank
ers, investment men, service and
T
equipment dealers have indicated
they will be attending the 71st annual
Nebraska Bankers Association Con
vention in Lincoln, May 5-7:
Chicago
American National Bank & Trust
Company: John H. Baldauf, vice pres

dent, and Jack E. Beets, assistant vice
president.
Commerce Trust Company: Tom C.
Cannon, vice president; Jarry K.
Parker, assistant vice president, and
Don C. Anderson, assistant cashier.
First National Bank: George C.
Dudley, vice president, and Paul A.
Peterson, assistant cashier.

ident; William B. Aldrich, assistant
vice president; Robert O. Walcott, as
sistant vice president, and George H.
Spence, agricultural officer.

Yates, vice president; Everett B. Ken
nedy, second vice president.

Continental-Illinois National Bank
& Trust Company: Charles R. Hall,

Chemical Bank New York Trust
Company: John J. Irish, assistant vice

vice president, and Samual D. Addoms, assistant cashier.
First National Bank: Nevin G.
Bowser, vice president.
Northern Trust Company: Robert
P. Kline, vice president, and John N.
Fix, assistant cashier.

president.

Denver
Central Bank & Trust Company:

Don Echtermeyer, vice president, and
John Edmiston, assistant cashier.
Colorado National Bank: W. J.
Fleming, correspondent bank officer.
Denver United States National Bank:

George Alff, vice president, and Terry
Ryan, loan officer.
First National Bank: Royce B.
Clark, vice president, and Gary A.
Breeze, assistant vice president.
Kansas City
City National Bank & Trust Com
pany: John J. Kramer, executive vice

president; Roy Thompson, vice presi

New York
Chase Manhattan Bank: Robert

First National City Bank:

Irving Trust Company: Donald C.
Jackson, vice president, and Rohn M.
Laudenschlager, assistant secretary.
Manufacturers Hanover Trust Com
pany: Carl G. Carlson, assistant vice

president.
Omaha
First National Bank:

F. Phillips
Giltner, executive vice president; Don
R. Ostrand, vice president; Mervin F.
Aegerter and G. Robert Brown, sec
ond vice presidents; Herman Jacobs
and Don Miller, correspondent bank
department.
Omaha National Bank: Morris F.
Miller, president; John M. Shonsey,
executive vice president; H. H. Ech
termeyer and Howard M. Johnson,
senior vice presidents; Fred Douglas,
Bob Johnson and Dave Johnson, vice

W ell See You at the
Nebraska Convention
To the many Nebraska
bankers

now

using our

credit life program, we
J. STEFFEN
hope to see and greet each of you at your State Convention.
C. GUSTAVESON

J o those of you who are not familiar with National Fidelity’s
credit life programs, we would like to tell you about them. Look
for us at the group meetings. W e ’ll be looking for you.
One o f the Nation’ s Strongest hy A n y Standard o f Comparison

j^ational fidelity V fe
INSURANCE CO M PA N Y
Northwestern Banker, April, 1968

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

Robert

Stokes, assistant cashier.

KANSAS C IT Y , M O . 64106

presidents; Jack Babcock, Floyd Fore
man and Del Olson, second vice presi
dents; John Marcell, correspondent
bank officer.
Stockyards National Bank: Don J.
Murphy, president; Frank J. Sibert
and William S. Graves, vice presi
dents; C. W. Means, senior vice presi
dent; John Farrell, assistant vice pres
ident.
United States National Bank: Ed
Lyman, president; Kermit Hansen, ex
ecutive vice president; Robert Hasebroock, senior vice president; Jay
Bordewick, vice president; Howard
Nielsen, assistant vice president; Ever
ett Brown and Jesse Zimmerman, as
sistant cashiers.
St. Joseph
American National Bank:

Charles
K. Richmond, senior vice president;
Gilbert Tootle, senior vice president;
Everett L. Crume and Donald D.
Folks, vice presidents.
First National Bank: Benton O’Neal,
vice president-agriculture, and John
F. Gach, agricultural representative.
First Stock Yards Bank: H. H.
Broadhead, Jr., vice president, and
Arthur R. McClaskey, assistant vice
president-agriculture.
Sioux City
First National Bank: Dick Taylor,

vice president, and Mike Broderick,
assistant cashier.
Northwestern National Bank: S. W.
Evans, president, and J. J. McGill,
vice president.
Security National Bank: Thomas
Horn, senior vice president; John A.
Diefendorf, vice president; Gene Ha
gen, assistant vice president; and
Lance Blue, assistant cashier.
Toy National Bank: Leslie H. Ol
son, vice president; Richard A. Breyfogle, assistant vice president; Jerry
Wrage, assistant cashier.
Bank Equipment and Other Firms
Bank Investors: Richard Newlin.
Central States Health & Life Com
pany: John D. Mace, Warden H.

Kerndt, W. W. Hoffman, Jerry Warn
er, and R. C. Findlay.
Chiles & Company: Hal F. Childs,
James P. Foley, George E. Easley, Bil
lie B. Beavers and James P. Kineen.
Diebold, Inc.: H. R. Herron, sales
engineer.
First Nebraska Securities, Inc.:

Wm. Daly, vice president.
National Fidelity Life Insurance
Company: Jerry Steffen and Charles

Gustaveson.
New York Terminal Warehouse
Company: Russell V. Peterson, assist

ant vice president.
Old Security Insurance Companies:

F. N. Coulson, R. F. Forbis and W. E.
Felter.

N ebraska

Omaha Planting Company: Harvey
L. Hayes, Jr., Blimp Johnson and
Charlie King.
J. Clift' Rahel & Company: Cliff R.
Rahel, president; George E. Knack,
senior vice president and manager of
Lincoln office; Howell P. Roberts,
Harry F. Ware, W. J. Gourley, John
J. Frenking, J. W. Protzman and Tad
R. Dunham.
Recordak Carp.: Harry Van Sandt,
branch manager.
Robert

Schweser

Company:

Leonard L. Lawr e nc e , president;
Frank E. Williams, Patrick H. Rensch,
William March and Robert E. Roh.
United States Check Book Compa
ny: Fred Pfaff, vice president; Kent

Miller, Chuck Peterson, Dick Hansen,
Ron Ford, Richard Dick and Howard
Yarwood, representatives.
Van Horne Investments, Inc.: Ed
win Van Horne, chairman; John Van
Horne, president; Mike Van Horne,
Phil Lorenzen and Harold Ebner.

Named Bank President
Gwen A. Harris has been elected
chairman of the board of directors and
president of the Bank of Monroe, to
succeed her late husband, Frederick
C. Harris.
Ken Hurner has been promoted to

executive vice president and cashier.
He was formerly vice president and
cashier.

News

Bash was also elected to the board of
directors.

Celebrates Unusual
“ 10th” Anniversary

Five-in-One Weather
Station Featured
In a spring promotion lasting until
May 18, the O. A. Cooper Company of
Humboldt, feed manufacturer, is fea
turing a five-in-one weather station.
It is called “Weather Watch” and it
furnishes temperature, rainfall, rain
accumulation, wi n d d i r e c t i o n and
wind speed. It is available at Cooper
feed dealers with the purchase of
Cooper feeds.
The “Weather Watch” is an ac
curate weather station, all gauges, in
dicators and the thermometer having
been calibrated by the National Test
ing Laboratory, and metal parts are
nickel plated.

Officers Elected at Orleans
At a special meeting of the board of
directors of the Republican Valley
Bank, Orleans, the following officers
were elected to succeed the late Thom
as J. and Mary E. Waldo: Robert Ott,
formerly vice president on an inac
tive basis, was elected president, and
Dwight L. Bash, formerly cashier, was
elected vice president and cashier. Mr.

The First State Bank of Shelton re
cently celebrated its “10th” anniver
sary on February 29. Although the
bank was chartered in 1928, 40 years
ago, the date of the charter was Feb
ruary 29 (Leap Year) and hence the
10th anniversary celebration 40 years
later! L. J. Hallas is president.

Firth Bank Shows Growth
Gerald H. TeKolste, executive vice
president and cashier of State Bank
of Firth, reported last month that due
to the continuing gain in new ac
counts since the bank started busi
ness July 1, 1966, an additional 100
safe deposit boxes are being installed
in the bank.
After conversion of the former
Firth Cooperative Credit Association
into the bank charter, the newly-or
ganized bank was operating profitably
within a year, Mr. TeKolste reports.
Roland F. Beach of Firth is presi
dent. Other directors, besides the
two officers, are Lloyd Schwaninger,
Willard TeKolste and Chris TeKolste,
all of Firth.

Home Office of UNION INSURANCE COMPANY at I4th & Que Sts., Lincoln, Nebraska

You are cordially invited to visit our home office
whenever you are in Lincoln
We

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th at

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UNION INSURANCE COM PANY
T. J. Farrell, Chairman of Board
D. H. Pettett, President

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

Maurice R. Gerleman, Secretary
John V. Head, Vice President
Northwestern Banker, April, 1968

N ebraska

News

SPEAKERS at the Bank Management Seminar are pictured above, left to right: Howard L . Burdick, Burnham Yates, Charles R. Mc
Neill, Marion Morgan, Joseph D. Henderson, Mr. Burdick, and the “ three Smith Brothers” who followed in succession to the plat
form— Dr. Robert S. Smith, Dr. Arthur A, Smith and Thomas R. Smith.

Seminar Speakers issue
ÍChallenge la M anagem ent
By BEN HALLER, JR.
Editor
CHALLENGE was issued to Ne
braska bankers last month.
The challenge is to take “AIM” at
the future:
A—awareness of the continuing
changes in the financial busi
ness.
I—Intelligent planning to keep pace
with, and preferably ahead of
the changes.
M—management know-how and up
grading that will maintain lead
ership for banking in the chang
ing world of finance.
This challenge was issued by speak
ers at the Bank Management Seminar
conducted in Omaha by the Nebraska
Bankers Association. Approximately
175 executive officers of banks of all
sizes in Nebraska attended the meet
ing. Presiding officer was Howard L.
Burdick, chairman of the NBA Bank
Management Committee and presi
dent of First National Bank and Trust
Company, Columbus. Marion R. Mor
gan, president of the NBA, welcomed
the registrants at the evening meeting

held immediately following a social
hour and dinner.
Keynote
Burnham Yates, president of First

National Bank and Trust Company,
Lincoln, and a member of the Ameri
can Bankers Association Federal Leg
islative Committee, issued the keynote
“ challenge” for the Seminar. He said,
in part:
The basic strength of the banking
business has remained relatively un
changed the past 35 years. We came
out of the depression with new rules
which have remained basically the
same. In the meantime, our world
has changed. W e’ve experienced
World War II, worldwide problems
since then, population and changes in
international finance, as witness the
financial crisis over gold.
Our government promises full em
ployment, we have new inventions,
new ways of doing things; the com
munications field has changed more
rapidly than any other. What hap

pens in Wall Street now has an im
pact on our small towns in one day.
We have an interlocking Interstate <
Highway system.
What’s happened in finances? A
big financial revolution. Look at our
economic growth. We sold bonds in
World War II and created inflated de- ^
posits. Now we’ve used up these de
posits. When we decided we didn’t
have enough deposits, we entered into
violent competition with S&L’s and
hit them pretty good. We realize we
must do new things and better things
each year. And we mustn’t forget our
customers. What they want is of par
amount importance.
Money is the lubricant and fuel for
everything going on. We used to be
in the barter system, but no longer.
We are now in a financial system.
Starting in the 1930’s, banks have had
a pretty good monopoly. But if we
believe in free enterprise system, we
can’t argue against others wanting to
get into the same lines of business as ^
we are—so long as the same ground
rules apply.
Insurance companies are an exam- ^
pie. They have been hit hard so now
they want to go into the mutual fund
business. In our own financial busi
ness there is more competition. Sears
CHALLENGE . . .

(Turn to page 112, please)

1201

S O U T H S I X T E E N T H STREET

O M A H A 8, NEBRASKA
!U n i t e d S t a t e s

Northwestern Banker, April, ¡968

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Federal Reserve Bank of St. Louis

N ebraska

News

Jtunkers9
F eeders Idearti
tJ eestoek Futures M a rket
EDGING, by using the livestock
H
futures market, is a tool for op
erating in a free and competitive
economy and is a means to attainment
of the goal of free and competitive
prices as opposed to fixed prices and
government subsidies.
Thus concluded Karl F. Heimke of
the Chicago M e r c a n tile Exchange
when addressing the more than 700
bankers, farmers and ranchers from
seven states who were in attendance
last month at the third annual Chuck
Wagon Roundup sponsored by the
First National Bank of Omaha. The
“ro u n d u p ” w as
h eld at Ak-SarBen sale pavilion
in Omaha, with
g u e sts co m in g
from Iowa, Min
nesota, South Da
k ota , Minnesota,
W y o m in g , M is
souri and Kansas.
D on O strand,
vice president in
D. R. O S T R A N D
charge of the cor
respondent bank department, First
National Bank of Omaha, opened the

T IE

day’s activities and extended a cor
dial welcome to all the guests.
The “Wagon Master”

Following Mr. Ostrand to the po
dium, Mervin F. Aegerter, First Na
tional second vice president, became
“Wagon Master” for the rest of the
day. Mr.Aegerter keynoted the major
subject of the day, beef cattle futures,
by saying that in a recent poll of
farmers in Iowa, 90 per cent of those
polled did not know anything about
beef cattle futures, and 60 per cent
of that group responded that if they
did know something about how the
beef cattle futures market worked
they would consider using it.
Thus, Mr. Aegerter pointed out both
the problem and the promise: wide
spread misunderstanding and lack of
knowledge about the beef cattle fu
tures market and the expressed de
sire to use cattle futures as a hedge
against loss once an understanding of
the market and its workings is
reached.
Why Livestock Futures

Addressing himself to the topic,
“ The Why and Wherefore of Live

WAGONMASTER, for the Roundup was
Mervin F. Aegerter, 2nd v.p., First Natl.
Bank of Omaha.

stock Futures Trading,” Mr. Heimke
spoke briefly on the evolution of the
farming industry, the changes in mar
keting techniques of farm products,
and the development of the agri-busi
ness operation which characterizes
farming today. Pointing out that the
traditional multiple production fam
ily units now are specializing as a re
sult of advanced know-how about pro
duction techniques and that the farmCHUCK W AGON . . .

(Turn to page 115, please)

TO Y M âTO M âL M

SIOUX CITY, IOWA

KNOW N BY THE CUSTOMERS WE KEEP

The Correspondent For Northwest Iowa
C . E. A R O N S O N , Asst. V. P.

L. H . O L S O N , Vice President

LEO STAVAS, Asst. Cash.

R IC H A R D BREYFOGLE, Asst. V. P.

DATA PROCESSING

PHONE US:

712-255-7926

Northwestern Banker, April, 196B

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Federal Reserve Bank of St. Louis

meet 4
of the hardest noses
in a ll Iowa when it
comes to
E

G A R Y STEVENSON

H O M E R JENSEN

O . JA Y T O M S O N

These noses b e lo ng to th e Bankers Trust tea m fo r c o rre s p o n d e n t co m
p u te r services. Each is a spe cia list. They have to be because m illions
o f dollars in e le c tro n ic d a ta processing e q u ip m e n t is restin g on th e ir
shoulders.
These are th e men who w ill counsel w ith you on th e q u e stio n : EDP
service to be? O r n o t to be? A f t e r a co m p le te , in d e p th F e a sib ility
S tud y o f y o u r o p e ra tio n s, th e ir answer is just as likely to be " N o " as
"Y e s ".
O u r hardnosed experts have an eye fo r p ro fit. Yours.

Bankers Trust co.
SIXTH A N D LOCUST. DES M O IN E S
M em ber: F. R. S. & F .D ./.C .

Northwestern Banker, April, 1968

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

PAU L G R IFFITH

On Bettendorf Board
George R. Thuenen, Bettendorf busi
nessman and former mayor of the
city, has been elected to the board of
directors of the Security State Trust
& Savings Bank.

Iow a

NEW S
O.

H A N SEN

4 A . E . L IN D Q U IS T , J R .

P r e s id e n t
S e cre ta ry

Check Guarantee Plans

D u ra n t
D e s M o in e s

FH IC R ep orts Ion a Figures
OTAL deposits of all insured com
T
mercial banks in Iowa as of De
cember 31, 1967, were 10.8 per cent
higher than at the end of 1966, ac
cording to figures released last month
by the Federal Deposit Insurance Cor
poration. Deposits of the state’s 661
insured commercial banks amounted
to $5,222 million at the end of 1967,
' compared with $4,710 million a year
earlier.
During the same period, deposits at
À all insured commercial banks in the
United States increased from $352,191
million at the end of 1966 to $395,015
million as of year-end 1967, a growth
of 12.2 per cent.
Time money accounted for most of
the deposit growth in Iowa and in
the country as a whole. The increase
in time deposits was 20.1 per cent for
* Iowa compared with 15.0 per cent na

State

tionally. Demand deposits increased
3.6 per cent in the state and 9.8 per
cent in the United States.
Total loans extended by Iowa banks
rose 9.2 per cent from 1966 to 1967,
compared with an 8.4 per cent gain
for the United States. Investments
of insured co m m e rcia l banks in
creased 14.4 per cent in Iowa and 18.2
per cent in the country as a whole.

Gets Junior Chamber Award
Daniel L. Krieger, assistant vice
president and assistant trust officer,
has received the 1968 Junior Chamber
of Commerce Distinguished Service
Award for outstanding community
work he has done in Ames during the
past few years. Mr. Krieger received
the award at the annual Ames Cham
ber of Commerce banquet.

Ranhing Conference To He Hehl A p ril I It

ROGRAM highlights have been announced for the
47th Annual State Banking Conference of the Iowa
Bankers Association on Thursday, April 18 at Hotel Savery, Des Moines. The meeting is held in conjunction
with the 28th annual meeting of the Iowa Junior Bank
ers Association.
Heading the activities will be Donald W. Heineking,
president. Security State Bank, Hubbard, who is presi
dent of the Federation of County Bankers, and Robert
Clawson, assistant vice president, The State Bank, Fort
Dodge, who is president of the Iowa Junior Bankers
Association. The program follows:

Thursday, April 18

}■
I

.James Coquillette, president of the
Merchants National Bank, Cedar Rap
ids, has announced the introduction
of two new services to be run by the
installment loan department. They
are Checking Plus and the Check
Guarantee Card.
The Checking Plus service will en
able a customer to establish a credit
reserve behind his checking account
which will cover checks written ex
ceeding the balance of his account up
to the amount of established credit
reserve. In effect, the customer will
be taking out a low cost loan for the
sum exceeding his balance.
The Check Guarantee Card will en
able account holders to cash checks
up to $100. The card identifies the
holder as a valued MNB customer,
and business people presented with a
personal Merchants National Bank
check will know that the check will
be honored by the bank if it does not
exceed $100. The bank is giving
Check Guarantee Cards to all custom
ers who qualify for the new Checking
Plan Service.

A.M.
8:00 Registration—Terrace Room, Hotel Savery.
9:00 Conference Called to Order—Donald W. Heineking.
Presenting to take a bow:
C. W. Dunn, vice president, Federation of County
Bankers Associations, and president, Security Sav
ings Bank, Eagle Grove.
Winfield G. Mayne, secretary, Federation of County Bankers Associations, and cashier, Montgomery
County National Bank, Red Oak.
Word of Welcome and Remarks—Oliver A. Han
sen, president, Iowa Bankers Association, and pres
ident, Liberty Trust and Savings Bank, Durant.
9:20 “ The Why and What of Banking Advertising”—
Roger D. Kirkwood, secretary, Kansas Bankers
Association, Topeka, Kan.

10:00
10:15

10:30
10:45

— Holmes Foster, deputy superin
tendent of banking, Des Moines, Iowa.
Iowa Business Development Credit Corporation—
J. W. Lipton, Jr., vice president, Iowa Bankers
Association, and executive vice president and cash
ier, Ida County State Bank, Ida Grove.
Coffee Break.
Uniform Commercial Code — William A. Sawtell,
Jr., attorney, Omaha, Neb.
Recess for Luncheon.

R e c o d if ic a t io n

12:00
P.M.
12:15 Luncheon—Des Moines Room, Hotel Savery.
Presiding—Robert Clawson, president, Iowa Jun
ior Bankers Association, and assistant vice presi
dent, The State Bank, Fort Dodge.
“ Iowa Plan for Higher Education and Report from
Washington”—Hon. Fred Schwengel, member, U.
S. House of Representatives, Washington, D. C.
2:00 Introduction To Bank Cost Accounting—Allen G.
Wolkey, assistant cashier, Federal Reserve Bank
of Chicago.
3:00 Wages and Hours—Neill Garrett, general counsel
of the Iowa Manufacturers Association, and Mas
ter Builders of Iowa.
4:00 Meetings of the Federation of County Bankers and
the Iowa Junior Bankers Association to discuss
additional participation in the Iowa Bankers Asso
ciation.
4:30 Adjournment.
Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

100

Iowa News

tivù man tinnii W ins Service A w ard
J o h n o r Ma r y D or
BRAMAN, IOWA

banks in these
cities have

No.
7 2- 11 95
"713

used the specialized
new building or
remodeling service
of the
Kirk Gross Co.

Paytothe
08DKHOF „
Cjwvmjmb;
/

B
SAVINGS BANK
BEAMAN, IOWA
the

i; o

ou*&m

mtzmmzyf

co u n ty"

B a n k

nam es

re q u e s t

u n s*:

LLUSTRATED checks used by
IBeaman,
the Farmers Savings Bank of
Iowa, have been selected
for a special community service
award by the Burroughs Corpora
tion of Rochester, N. Y., the world’s
largest check printing company.
In winning the special award for

Distinguished Community Service,

the bank’s check was credited with
performing “one of the most effec
tive public relations services for
the bank and the community.”
The F a rm e rs S a v in gs Bank
check incorporates a number of
skillfully executed line drawings
symbolizing the Beaman commu
nity and depicting this commu-

Savings Bonds Committee
Reports Meeting
William P. Ronan, chairman of the
U. S. Savings Bonds Committee for
the Iowa Bankers Association, and
president of the Decorah State Bank,
made the following report after his
committee met in Des Moines recent
ly:
“ Some of the items discussed in
cluded the rates being paid on Sav
ings Bonds and Freedom Shares, the
remuneration to banks for handling
Savings Bonds and the amount of
support Iowa banks should give to
the Savings Bonds Program.
“There was unanimous agreement
that the Treasury Department needs
to make some adjustment in the inter
est rate being paid on Savings Bonds,
especially on the Series H Bond
which has been so popular in Iowa.
Glenn Ingle, State Director of the
Savings Bonds Program, reported that
in the past seven years total sales of
the Series H Bond in Iowa had
dropped from a high of $72 million to
just over $25 million in 1967. Series
E Bond totals have remained fairly
constant with sales in 1967 down
slightly. Freedom Share sales have
not met expectations because of the
restrictions placed on their sale. No
Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

nity’s most important industry —
farming—and its products.
The check also calls attention to
the bank’s place in the community
(held for over 70 years), as well as
the community’s importance to the
nation and to industries in the area.
At the last annual report, Farm
ers Savings Bank showed the larg
est percentage increase in deposits
of any bank in Grundy County,
with total capital account at $259,315 and total deposits over $2,500,000. The bank plans to continue to
expand its business in the next 12
months through a 1968 community
service program to bring new cus
tomers to its doors.

Alden • Algona (2) • Ames (2)
Aplington • Arlington • Belle
Plaine * B ritt(3 ) • Brooklyn
Cedar Falls • Chariton • Charles
City • Chelsea • Corwith
Dyersville • Dows • Decorah
Emmetsburg (2 ) • Estherville
Eldora • Evansdale
Fairbank • Fairfax • Forest
City • Fort Dodge • Fort
Madison • Frederika
Grundy Center * Garner (3)
Guttenberg
Hartley • Hawkeye
Ida Grove • Jesup
Keokuk • Keystone • Kalona
Kanawha
Lake Park • Lisbon
Mason City * Marion • Melbourne
Monroe • Mt. Auburn • Mt.
Pleasant • Manchester
Nashua • Nevada (2)
Oelwein * Ottumwa
Parkersburg
Randall * Readlyn
• Red Oak
Reinbeck * Renwick • Riceville
Sac City (2) » Sheldon • Spencer
Traer * Toledo • Titonka
Vinton
W aterloo (6) • Waukon • Waverly
Worthington » Williams

recommendations were made by the
committee on any specific changes
which should be made by the Treas
ury.
“ Some members felt that the Treas
ury should also make some adjust
ment in the fee paid to banks for re
deeming Savings Bonds as this figure
has not been changed since the Sav
ings Bonds Program was first started
in 1941. It was not recommended, at
this point, that the committee or the
association take any formal action or
make any formal recommendations.
“After this discussion, however, ev
eryone agreed that all banks have a
patriotic responsibility to their gov
ernment and should take an active
part in the promotion of the Savings
Bond Program.”

Plus banks in surrounding states

Mail this coupon . . .
We are interested in:
□ New building program
□ Remodeling our quarters
□ New fixtures— modernization
□ Have consultant call

Kanawha 60th Anniversary

Bank.

The 60th anniversary of the char
tering of the Farmers State Bank of
Kanawha was observed last month
with an open house for the public.
The bank was granted its charter on
March 16, 1908, with a capital stock
of $25,000. Officers of the bank now
are: E. G. Hanson, president; O. L.
Schroeder, vice president; D. E. Zeigler, assistant vice president, and Viola
Schroeder, cashier.

Executive-

City— —

-Zip-

State.

; k / R k G r o s s C o.
/

BANK DESIGN

CONSTRUCTION SERVICE

110 East Seventh Street
•
Waterloo, Iowa S0703
Telephone 319-234-6641

101

if the KIRK GROSS CO.
had an official
grand opening flag
• • • • fo r banks

you would

• •

have seen
it flying
r

Minnesota

IO W A

Wisconsin

over more
than 80
banks
in Iowa!

A
Nebráska

'Illin o is

"v
Missouri

Honestly, we don’t believe'over/on^ hundred fif*y bank$
would actually fly our flag» designating their grand open
ing . . . but we know there is\a bank in your area which
has used our specialized services in the past year, so we
invite you to review our files to see fo r yourself how our
“ Bank Planning Service” has saved these neighborly bank
ers needless worry in carrying out their improvement
programs.
Get the facts before you reach a final decision . . . a letter
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you on initial planning. . . at no obligation, of course.

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Constultation
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»
Waterloo, Iowa 50703
Telephone 319—234-664!
Northwestern Banker, April,

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Federal Reserve Bank of St. Louis

7968

102

Retires at Marshalltown

D e s

M o in e s

N e w s

V-

A farewell party was held last
month for Mrs. Blanche Monohon,
who retired as an assistant cashier of
the Fidelity Savings Bank, Marshall
town, after serving the banking field
for 48 years.
Mrs. Monohon first started working
at the First National Bank in Mar
shalltown and was employed there
from 1920 to 1928. She then went to
work at the Fidelity Savings Bank in
Marshalltown and has been employed
there for 40 years.

Named Assistant Cashier
has
been elected vice president and
trust officer at Capital City State
Bank, according to an announcement
made by Raymond G. Miller, chair
man of the board,
f o l l o w i n g a re
c ent d i r e c t o r s ’
meeting.
Mr. Buenneke
entered the State
U n i v e r s i t y of
Iowa in 1953 as a
Merit Scholarship winner and
received his law
degree in June,
R. H. B U E N N E K E
1959, f r o m that
school. He is a member of the Iowa
and Polk County Bar Associations and
the Des Moines Estate Planners For
um. His previous banking experi
ence includes four years with the
trust department of Central National
Bank and Tr us t Company, Des
Moines.
* * *
The comptroller of the Currency
has approved the application of the
Iowa-Des Moines National Bank to
establish a detached motor bank fa
cility at East 25th and Euclid Streets
in Des Moines. A bank spokesman

ic h a r d

h. buenneke

said architectural plans are in prog
ress but await completion of platting
of the area selected.
* * *
Don Jordahl, vice president and
cashier, South Des Moines National
Bank, was winner of the District 10
A.I.B. Speech Contest in Sioux City
last month. There were 11 contest
ants. He will compete in the regional
Speech Contest in Chicago April 20.
* * *
Ivan L. John
son, v ic e pr e si

dent of Central
Nat i ona l Bank
and Trust Com
pany, has been
named 1968 chair
man of the 400member manufac
turers and whole
salers bureau of
the Greater Des
I. L. J O H N S O N
Moines Chamber
of Commerce. Mr. Johnson served as
the bureau’s good will tour chairman
last year.
* * *
Peggy Ann Vial has been elected an
assistant cashier of the National Bank
of Des Moines. She will continue as
assistant operations manager.

Government Bonds

Corporate Bonds

Mutual Funds

Municipal Bonds

Commodities

Conway Brothers-First of Iowa Corp.
M em ber:

C h ic a g o B o a rd o f T ra d e

Phone 2 8 3 -2 0 0 3
— OFFICES —
Mason City

Algona
Iowa Falls

Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

Drive-In Opened
Iowa Trust & Savings Bank, Oskaloosa, recently opened for business
its new drive-in banking facility,
The new brick and glass building is
10 by 39 feet in size, with driveway
canopies on both sides. The new fa
cility is open from 11 a.m. until 4:30
p.m. Monday through Thursday, from

NEW DRIVE-IN facility for Iowa T&S in
Oskaloosa.

Listed and Unlisted Stocks

902 W alnut Street

Charles A. Young, assistant cashier <
of The Home Trust & Savings Bank,
Osage, has been promoted to cashier.
He assumes duties of second man in
the bank. Mr. Young, who has been
with the bank for 10 years, is a gradu
ate of the School of Banking at Madi- K
son, Wis., and of the Agricultural
Credit School at Ames.
Weston D. Birclsall, former cashier
of The Home Trust & Savings Bank,
has resigned to go into another busi
ness, but continues as a director.

Des Moines, Iowa 50 3 0 9

Mount Pleasant
Denison

11 until 8 on Friday, and from 9 a.m.
until noon on Saturday. A night de
pository is available also.
Stockholders of the bank recently
voted to increase the capital of the
bank from $100,000 to $200,000, which
was effected by a 100 per cent stock
dividend which was declared by the
board of directors. H. W. Sauter is
president of the bank.

103

C o rresp o n d en t Banking
U

. . . and Central National will show you an eyeful
of services tailored to fit the needs of your bank.
You'll see computer account processing, bond in
formation, loan participation, and the benefit of our
lifetime experience in serving banks like yours.
Let Dale Smith, Dick Smith, Eddie Wolf or Pete

DeRosier acquaint you with all our correspondent
services. They can paint a rosier picture of your
bank’s future. We invite you to take a lively look at
Central National, soon. You won't have far to look.
Central National is no farther away than your tele
phone. (Dial 515-243-8181)

“ The B a n k That C ares”

CENTRAL NATIONAL BANK AND TRUST COMPANY
LOCUST AT SIXTH AVENUE* DES MOINES, IOWA .MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1968

104

Io w a

News

Farm ers State, M arian, Halils Several Open H ouses 1

RECESSED L IG H T S enhance nighttime beauty of new bulding opened recently in Marion, Iowa, by Farmers State Bank.

HE Farmers State Bank of Marion
T
held several open houses to cele
brate moving into its recently com
pleted bank building.
The first was a cocktail party for
about 50 members of TV, radio and
press organizations. The second was
a breakfast in the bank’s public room
for 384 businessmen. The same day,
the management was host to 202 bank
e mpl o ye e s , stockholders and their
families at a dinner in the public
room.
On Sunday, the following day, more
than 8,000 people attended the open
house for the general public. At one

Dallas Center Changes
The following title changes have
been made at Brenton State Bank,
Dallas Center: Kenneth R. Heisler
moves from cashier to vice president
and cashier; Glenn R. Erickson moves
from assistant cashier to assistant
vice president, and Wayne R. Haines
becomes assistant vice president. Rog
er Winterhof, Alta, Iowa, is a new
officer-trainee.
Helen Rhinehart was honored re
cently at the annual meeting of Bren
ton Banks, Inc., for her more than
24 years of service to the Brenton or
ganization. She was presented with
a gold chime clock from her associ

time, a block long line of people had
formed waiting to tour the building.
The following Saturday for a “Bank
ers Only” open house, 285 bankers
and their wives toured the new quar
ters, then adjourned to the Town
House Motel for a buffet dinner.
These open houses established a
record of having the most people ever
to attend any similar function in Mar
ion.
The new building features a central
banking lobby, with related services
around the perimeter. Entrances are
available from the street and the
bank’s 60-car parking lot. A covered
ates. Although she is no longer in
the office on a full-time basis, Miss
Rhinehart is remaining as vice presi
dent of Brenton Banks, Inc., in an ad
visory capacity on corporate advertis
ing and women’s activities.
Miss Rhinehart, who joined the
Brenton organization in 1943, was
elected president of the National As
sociation of Bank Women in 1959.

Goes to Dubuque Bank
Lee M. McDermott has recently
been employed in the installment loan
department of First National Bank of
Dubuque. He is a graduate of Loras
College and previously was manager

drive-through banking area is pro
vided. Besides walk-up and drive-up *
after hours depository stations, two
drive-up windows and expandable TV
banking were incorporated into the
building.
The interior, enclosed area of the
bank is 20,000 square feet with space
for future expansion. Natural light
illuminates the main floor through
skylight clusters around interior col
umns and a continuous glass band be
tween the top of the perimeter walls
and the overhanging roof. A board
room, employees’ lounge and kitchen,
and a public meeting room are in the
lower level.
of a finance company office in Du
buque.

Joins Creston Bank
James R. Johnston has been elected
c as hi e r of the
Iowa State Sav
ings Bank, Cres
ton. Mr. J oh n
ston comes to the
bank from Dallas
Center. He has
be e n e m p l o y e d
by B r e n t o n
Banks for the
past nine years
t t*
in
I. n d i a n, o tl-w
a i,
J. R. JO H N S T O N
Waukee and Dal
las Center.

Centennial Open House

T V A u to Bank Opened in Clinton
The Clinton National
B a n k o p e n e d its
$100,000 TV drive-in
auto bank recently.
The new facility fea
tures t hree remote
control drive-up win
dows, according to I.
H . Carnes, pres. It is
l o c a t e d across the
street from the bank.
Equipment was in
stalled by Mosler.
Northwestern Banker, April, 7968

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

An estimated 2,000 persons visited
the Hardin County Savings Bank of
Eldora during its recent centennial
celebration and open house event.

Kalona Remodeling
R. L. Hendrickson, president of the
Kalona Savings Bank, announced last
month that extensive remodeling is
planned for the bank premises. Dur
ing remodeling, temporary quarters
will be used. The temporary area will
be located at 425 B Avenue in the
Grady Building.

105

Together,
they conquered
the unknown

Cy Kirk
Vice President

The explorer, LaSalle, for all his courage and vision
couldn’t have accomplished what he did without help.
One of his most trusted aids was a man named Tonti,
who traveled with him across the wild Louisiana Terri
tory. They worked well together because LaSalle had
confidence in Tonti’s experience and judgment.

Today, those same qualities mark the leadership of
LaSalle National Bank . . . and those who work with it.
They’re good reasons for the growing list of corre
spondent banks working with LaSalle. Talk to your
LaSalle correspondent officer, to find out what LaSalle’s
experience and judgment can do for you.

THE LOOP B A N K ...W IT H COMPLETE TRUST SERVICES

NATIONAL

BANK

135 South La Salle Street • Chicago, Illinois 60690 »Telephone: 312-ST 2-5200
Member Federai Deposit Insurance Corporation

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

Northwestern Banker, April, 1968

106

Iowa News

M aquoketa State fía ah t am pieles fíemialeliatf

HE Maquoketa State Bank recent
T
ly completed remodeling and ex
pansion and celebrated with an open
house. The addition to the bank,
which roughly doubled floor space, in
cluded bookkeeping area, cashier’s
office, an extended teller unit, and a
walk-up window in conjunction with
drive-in facilities, and the original
building was converted to private
offices for loan officers. The new build
ing is 45 by 32 feet and has a full
basement which includes a board
room and a lounge and coffee area.
In addition, the bank purchased two
adjacent properties and converted
them to parking lots with stalls for
over 30 cars.
Maquoketa State Bank has also re
cently completed a stock sale involv
ing the sale of an additional 2,000
shares, which doubles the bank’s capi
tal account. Total footings in the
bank have risen from $3,000,000 two

JAMES C. SHAW, Pres.
OWEN P. McDERMOTT, Secy.-Treas.

SJia w ,

years ago to over $9,500,000 at pres
ent. Edward L. Tubbs, president, and
John W. Fagerland, executive vice
president, bought controlling stock in
the bank in May of 1966.

New Waukon Chairman
Elmer A. Fogt, recently honored for
completing 44 years of active banking
service with Waukon State Bank, has
been named chairman of the board,
succeeding the late Sherman Hart.
Attorney William S. Hart, Jr., has
been named to the bank’s board of
directors.

65th Anniversary
The Polk City Savings Bank at Polk
City is observing its 65th anniversary
this year. Wilbur C. Miller, president
of the bank, reports deposits are at an
all-time high of $2.7 million. Other
officers of the bank are E. P. Blaine,

ROBERT J. KIRKE, V. Pres.
THOMAS L. WORMLEY, V. Pres.

vice president; M. P. Allen, vice presi
dent and cashier, and Rexine Mondabough and Thelma A. Miller, assistant
cashiers.
Directors are: Mr. Miller, Mr. k
Blaine, Mr. Allen, John Hug, Don
Harmon, Bernard Lee and B. D. Mosier.

Farm Dinner a Success
More than 150 farm customers and
their wives attended the Second An
nual Farm Dinner Meeting held last
month by The First National Bank of
Marion. The meeting featured Herb
Howell, extension economist from
Iowa State University, who spoke on f
“Potential Trends in Iowa Agricul
ture.”
Also on the program were Dale
Awtry, deputy secretary, Iowa De
partment of Agriculture, and Robert !
Norrish, assistant cashier, Central Na- ^
tional Bank in Chicago.

5 0 - Year Hanker

M c D e r m o tt & f^o.

MUNICIPAL BONDS EXCLUSIVELY
Underwriters and Distributors
of
County, City, School and Revenue Bonds
1018 Liberty Bldg.
DES

MOINES,

Northwestern Banker, April, 1968

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

Phone 515— 243-6119
IOWA

50309

50 YEARS of continuous service to the
Farmers State Bank at Hawarden, Iowa,
were completed last month by E. V. Slife,
president of the bank. He started work
there March 4, 1918. A recognition dinner
is being given in his honor this month by
directors and staff of the bank.

107

THE COMPUTERBflIW
We’ve finished our new computer center. It’s brand new. And the IBM
System 360/40 is brand new, too. (It’s the only one like it in north
eastern Iowa).
This means that the National Bank of Waterloo now offers complete
computer service to area banks and their customers. A complete
computer service including Proof and Transit, Demand Deposit Ac
counting, Direct on Line Savings, and Automatic Compounding of
Time Certificates of Deposit. Ken Young can show you even more!
If you’ve been thinking about a computer service, we’ll be happy to
think right along with you. The National Bank of Waterloo the com
puter bank— can help make you “the computer bank”.

N A T IO N A L B A N K O F WATERLOO

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

•

110 E A S T P A R K A VE . & 3 1 5 E. 5 7 H • W A T E R L O O , IO W A

•

M E M B E R F .D .I.C .

Northwestern Banker, April, 1968

Iowa News

108

of the dealer for the welfare of the
customer.
The next function for the Iowa In
vestment Bankers Association will be
the annual Field Day. This will be
held again this year in conjunction
with the Nebraska Investment Bank
ers Association and is scheduled to be
in Des Moines September 12. Further
details as to site and time will be
given later.

NEW OFFICERS of Iowa Investment Bankers Association are: 1st v.p., Robert J.
Kirke, v.p., Shaw, McDermott & Company, Des Moines; secy.-treas., Alan J. Braga, a.c.,
iowa-Des Moines Natl. Bk., Des Moines, and pres., Tom O’Neill, res. mgr., Dean Witter
Co., Des Moines. The 2nd v.p., M. B. Cornelison, R. G. Dickinson & Company, Des Moines,
was not present for photo.

Iowa Investment Men
Elect New^ Officers
Members of the Iowa Investment
Bankers A s s o c i a t i o n met in Des
Moines recently for their annual busi
ness meeting, with approximately 50
in attendance. The newly-elected offi
cers are shown in the accompanying
picture.
Three speakers discussed various
aspects of the industry. Robert Oeth,
superintendent of securities for the
state of Iowa, told of the need for reg
ulation of the industry and the need
for authorities and industry repre
sentatives to continually review the
laws, especially those relating to in
trastate securities offerings.

‘ '■''1'.

'J
'1’

Herbert Sheidy, Chicago, secretary
of District 8 of the National Associa
tion of Securities Dealers, related new
rules and regulations for the broker,
dealer and registered representative.
With the rapidly changing pace in
the investment field and increasing
interest on the part of the public to
invest in the equities market, Mr.
Sheidy urged Iowa investment men
to look ahead and make plans now to
service this market properly and prof
itably.
The final speaker was William Rob
inson Fishman, an associate of the
Chicago law firm of Fishman & Fish
man. He is a former attorney for the
Securities and Exchange Commission.
His talk centered on responsibilities

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Specializing in Iowa County, City, School
and Municipal Utility Revenue Issues
FOR MORE THAN FORTY YEARS

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t o

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TELEPHO NE

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A re a C o d e 515
288-2152

Northwestern Banker, April, 1968

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

I). B m i C o .
S E C U R I T I E S
DES MOINES BUILDING
DES MOINES, IOWA

Iow a B an kers Plan
W ashington Trip

V-

DELEGATION of Iowa bankers
A
is planning to go to Washington,
D. C., on April 24 for consultation

with federal banking authorities and
Iowa Senators and Representatives.
The group will return on April 26.
Those making the trip will be members of the advisory committee, the
Council of Administration, and the
chairman and vice chairman of the
federal legislative committee, bank
taxation committee and the banking
law research committee.
The bankers and their wives will
headquarter at the Mayflower Hotel.
A briefing session has been set for
5:00 p.m. in the hotel that day.
On the following day, Thursday,
April 25, the entire group will take
part in a tour of the White House
starting at 7:45 a.m. There will be a
conference and tour at FBI headquar
ters at 10:00 a.m.
At 12:30 p.m., the Iowa delegation
will join with representatives from
the Colorado Bankers Association for
a luncheon conference in the FDIC
executive dining room. Following
this will be a visit at 2:15 p.m. with
Comptroller of the Currency William
B. Camp. The balance of Thursday
afternoon will be devoted to calling
on members of the Iowa Congression
al delegation at their offices.
A reception and dinner will start at
6:30 p.m. in Costin’s Sirloin Room Res
taurant.
The first order of business on Fri
day, April 26, will be a briefing on
federal legislation in the A.B.A. Wash
ington headquarters office. At 11:15
a.m. there will be a visit with Treasury officials. The group will then pro
ceed to the Federal Reserve Board
building where they will have a luncheon at 12:45 p.m., followed by a con
ference with Federal Reserve Gover
nors.
A s epar at e l u n c h e o n is being
planned for the ladies making the
trip.
The group will return Friday after
noon to Iowa.

\
+

109

Not even 27% of the Iowa Banks
correspond with American T ru st... Yet !
BUT...
We are Tickled Pink to
be the FASTEST
GROWING
Correspondent Bank
in the State of Iowa.
We invite You to join
Our happy Fam ily . . .

CHRISTY
ARMSTRONG

LEO
KANE

LEO
SCHLUETER

JAMES
WRIGHT

am erican tru st
an d s a v in g s b a n k
9TH AND MAIN, DUBUQUE, IOWA
MEMBER: FDIC • FRS

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Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1968

110

Io w a

News

REMODELING of the Lisbon Bank and Trust Company building at Lisbon, Iowa, is
proceeding on schedule, according to bank officials. The copper strike delayed installation of electric light fixtures and some plumbing fixtures. New counters are being in
stalled and the work is expected to be completed for an opening within the near future.

methods relating to the investment of
temporary excess reserves. Time has
not permitted a more extensive dis
cussion of these subjects — or even
such topics as tax losses and tax
switches — the buying of municipal
bonds—or comments on the current
state of the money market.
By no means do I wish to imply
that everything I have said can be
applied carte blanche to the entire
commercial banking industry. Every
bank has its own individuality and
personality, as well as its own needs.
Certainly the general statements that
I have made cannot have a general
application for all banks. Some, how
ever, can have a particular application
when received by a banker in the
light of his own needs. It is in this
sense that these remarks are intend
ed, with, of course, my personal wish
that you find them to be helpful.—
End.

Announce IV i/o
ONTROLLING interest in the Palo
State Bank has been purchased
by Bankers Equity Corporation, a sub
sidiary of Investors Equity of Iowa,
7200 Hickman Avenue, Des Moines.
Officers of Investors Equity are: W.
J. Baehler, president; Robert Baehler,
vice president and treasurer; William
Joseph, secretary; Tom B. Moore, as
sistant treasurer, and Lila M. Cisco,
assistant secretary.
Directors of Investors Equity are:
H. Dale Bright, Tom B. Moore, Wil
liam S. Joseph, John S. Rice, J. J.
Mallon, Robert Baehler and W. J.
Baehler, all of Des Moines, and Allen
R. Loomis, Fort Dodge, and E. J.
Sprengeler of Mason City.
Curtis Hayes, prominent area farm
er and president of the Linn County
Farm Bureau, will continue as presi
dent of the bank. W. J. Baehler and
Robert Baehler have been elected vice
presidents and members of the board.
Managing officer of the bank will be
announced soon.
The year-end figures of the Palo
State Bank showed deposits, $1,444,612; loans, $643,297; capital, $25,000;
surplus, $50,000, and undivided prof
its, $47,848.

SECURITIES PORTFOLIO . . .
(Continued from page 42)
an option period of one year during
which time the purchaser may either
put the loans back to the government
or continue to hold them until the
option period expires.
At the moment the fixed periods
and their yields are as follows:
one and two years—GMper cent
seven months—6% per cent
Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

three years—6% per cent
ten to 25 years— 6V2 per cent
These loans originate through the
various district offices of the Farm
ers Home Administration throughout
the United States. I know that many
of you have already purchased this
type of loan from one of these local
offices. Through Washington, they
are available to any bank in any
amount.
Interest and some amortization is
paid by treasury check, and so there
is no concern as to whether the bor
rower’s payments are up to date. In
terest is paid once each year, in Janu
ary, and this is a potential drawback
for those banks on the cash basis of
accounting and a December year-end.
I might add, however, that some Min
nesota state banks that will be sur
rendering the collection of exchange
after November might find this a use
ful tool in delaying some 1968 earn
ings into 1969.
To sum up and conclude then, there
have been great changes in commer
cial banking in recent years. Their
liabilities include more time deposits
at higher interest rates, and their as
sets generally include more higher
yielding risk assets and less cash and
fewer governments. We have dis
cussed the composition of the otherthan-treasury-securities account in a
bank, which is primarily determined
by the amount of taxable earnings.
The average maturity of most govern
ment portfolios has shortened con
siderably while the average maturity
of most municipal portfolios has
lengthened somewhat.
I have described seven different

Iowa Bankers Will Appeal
S&L’ s Mobile Bank Approval
The administrative committee of
the Iowa Bankers Association has ap
proved a motion for the Association
to coordinate the efforts of the banks
in Jefferson, Winterset and Osceola in
appealing a decision made by the Fed
eral Home Loan Bank Board.
The FHLBB approved the mobile
units by the United Federal Savings
& Loan Association of Des Moines in
three Iowa towns. Originally, the
United Federal had applied for use of
mobile units in 11 Iowa towns.
It is anticipated that the banks in
Jefferson, Winterset and Osceola will
be joined by other interested parties
in q u e s t i o n i n g the right of the
FHLBB to make the mobile unit regu
lation, and in doing so it has exceeded
the rights given it by Congress.

Bed Oak “ Farm Day*”
Over 400 persons attended Hough
ton State Bank’s “Farm Day” pro
gram recently at the national guard
armory in Red Oak. “ Soil Conserva
tion and Soil Stewardship” was the
theme for the day. The program in
cluded several speakers, a free lunch
and displays by cooperating organiza
tions and agencies.
Richard R. Hall, the bank’s agricul
ture representative and an assistant
vice president, opened the program.
Paul D. Dunlap, president of the bank,
spoke on “Country Banking Today.”
Fred Gilmore, Omaha, president of
the Union Stockyards Company of
Omaha and president of South Omaha
T e r m i n a l R a i l w a y Company, ad
dressed the gathering on “ The Live
stock Industry.”

Ill

FRED CUMMINGS

BERNIE MILLER

V ice P re s id e n t
C o rre sp o n d en t Banking
D ivision

V ice P res id en t
C o rre spo ndent Banking
D ivision

JOinllS!
Make it a Point to Visit with Fred and Bernie
at the Iowa Bankers’Group Meetings- May 7th -10th — May 21st-24th
!n case you haven’t met Fred Cummings and Bernie Miller, we'd
like to introduce them to you. They’re our bank’s correspondent
reps in Iowa. They’ve been around the Iowa banking scene for
quite awhile. Fred and Bernie have a lot to offer you and your
bank . . . like some new ideas to improve your bank’s investment
portfolio, or speed up borrowing and your collections from livestock
sales at the Chicago market. Most important, they’ll help you
personally. Care to get acquainted?

The

Drovers National Bank
of C hicago

C elebrating Our 8 5 t h Year

4 7 th and Ashland • Chicago, Illin o is 6 0 6 0 9
Phone: 9 2 7 -7 0 0 0

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION • MEMBER FEDERAL RESERVE SYSTEM

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Northwestern Banker, April, 1968

112

Io w a

News

M errill tinnii II it!ils Open ttnnse

State Bank of Merrill. The grand
opening featured refreshments, gifts
for all visitors and a drawing for a
television set and savings bond.
Both the interior and exterior of

the building is of a colonial design.
The main floor of the new building
features two private offices, one office
area, four teller cages, after-hour de
pository, a large lobby, two private
booths for safety deposit customers
and the vault area. Gordon L. Mennen is president of the bank.

Joins Danville Bank

Moves to Council Bluffs

Tom Ritchey is joining Danville
State Savings Bank, Danville, as as
sistant cashier, it was announced last
month by Charles W. Wagner, presi
dent of the Danville bank. Mr.
Ritchey, a native of New London, has
been associated with Farmers and
Merchants Bank & Trust Company,
Burlington,

James Beneke, who has been vice
president and farm representative for
Fremont County Savings Bank, Sid
ney, has resigned that position to be
come an assistant vice president of
the Council Bluffs Savings Bank in
Council Bluffs. He joined the latter
bank April 1 and will be manager of
the real estate loan department.

p p r o x i m a t e l y 1,500

people at

tended open house at the newly
A
completed building of the Farmers

t'linlleni/e tn M annifem eni . . .
(Continued from page 96)
makes all kinds of loans. We com
pete with S&L’s, PCA’s and revolving
credit plans.
The courts have held that banks are
completely subject to the Clayton Act
and no Banking Act can hold banks
exempt. My view is that any monop
oly banking has is being challenged,
so we’re going to face a whole lot of
legislation embracing the financial
business. Just as the railroads are
not in the railroad business but in the
transportation business, we must also
realize that we’re not in the banking
business but in the financial business.
Five years ago the professional
leadership of A.B.A. was changed and
has taken a forward direction. Spe
cialists in various fields have been
brought in to assist our members
keep ahead of the changing pace and
developments. One of these is our
next speaker, who is well qualified to
head A.B.A.’s Washington office.
Legislation
Charles R. McNeill, director of the

A.B.A. Washington office, told his au
dience that A.B.A. is trying to look
beyond mere banking concerns and
is trying to deal honestly with the
DigitizedNorthwestern
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Federal Reserve Bank of St. Louis

entire national and international pic
ture. “Bankers,” he stated, “should
now be financial leaders. They should
discuss current problems with more
news leaders and business leaders re
garding need for a tax increase and
spending decrease.”
He reminded his audience it would
be well for bankers to recall that
A.B.A. opposed the establishment of
the Federal Reserve Board in 1913,
the FDIC in 1933 and the Internation
al Monetary Fund in 1945. It be
hooves bankers then, he said, to make
sure that their opposition to the Fed
eral Mutual Savings Institution bill
is well founded. A.B.A. feels its posi
tion is well founded, but bankers
should know why.
Mr. McNeill feels banks will come
out of the “Truth in Lending” bill
hassle far more favorably than other
financial institutions, because its posi
tion has been in the public interest.
He concluded his additional remarks
with a summary of other banking leg
islation either in committee or pro
posed at the national level.
Farm Management
Joseph D. Henderson, assistant cash-

ier at Continental Illinois National
Bank and Trust Company, Chicago,
discussed the topic, “Cash Flow and
Record Keeping for Farmers and
Ranchers.” He gave his talk in con
nection with a well documented slide
presentation, and each member of the
audience had available a brochure
containing duplicates of all forms pro
jected on the screen. Mr. Henderson
described the tested and proven book
keeping method advocated by the sys
tem prepared by his bank. The entire
purpose of it is to help the farm oper
ator be a better manager, and to as
sist the banker to make more knowledgable decisions about the financing
needs of his farm customer.
The seriousness of the well accepted
Management Seminar this year did
not prevent humor from entering the
program. The final three speakers on
the program were all named “ Smith,”
which prompted a continuing round
of jokes from each of them about peo
ple named Smith (or those who aren’t
named Smith).

Future of Farm Financing
Dr. Robert S. Smith, professor of

farm finance, New York State College
of Agriculture, Cornell University,
Ithaca, N. Y., was the first Smith to
take the platform. He drew the loud
est round of applause (from all bank
ers named Smith!) when he opened
with, “All families were named Smith
originally, but as they committed
some evil deed their name was
changed. You notice there are still
some of us left!”
His topic was “Who Will Furnish
the Money for Agriculture?” He em
phasized that our system of financing
farms is the best ever and is the envy
of the world. “Banks have played a
very important role,” Dr. Smith noted,
warning, however, that “banks will
have to keep pace with changes to
continue their important role in farm
financing.”
He traced the changes in farm
growth through the past two decades
which shows that as farms expanded,
the mix of borrowed capital and the
owner’s own capital has changed radi
cally, for borrowing is double what it
was 20 years ago. Dr. Smith said, if
banks have done so well in taking
care of farm financing needs in past
years, what’s the big problem in the
future?
He answered by giving documented
forecasts by farm economists that
show growth in total farm assets will
go from $270 billion at present to $350
billion by 1980. In the same period, ^
borrowing by farms will go from $45
billion to $100 billion. He estimated

113

Banking
a t both ends
of the loop

SEVENTEENTH
FROM GRAND
TO LOCUST

WALNUT
A T FOURTH

A\felley Bankexclusive
in Des Moines.
A

MsSez Bank andTmst Company
Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1968

114

Io w a

News

that Nebraska farmers could need an
other $iy2 billion credit in the next 12
years. He reminded his audience that
in the past 10 years farmers found a
way to increase their farm debt $26
billion. “ If I’d told you that 10 years
ago, none of us would have believed
it,” he said.
Can farmers tap the same sources
in the future for this needed credit?
Dr. Smith isn’t sure. All channels
have been subjected to heavy pres
sure to obtain the $26 billion in the
past 10 years, and repayment ability
is under considerably more pressure.
He suggested several solutions, in
cluding selling shares in a family
owned farm, more widespread renting
as opposed to buying, permanent lines
of credit for the lifetime of the bor
rower, sellers of farm real estate
supplying a larger share of the money,
borrowing from supplier sources, leas
ing, vertical integration, loans with
right of conversion to ownership
shares, and several other proposals.
These are all ones advanced by one
source or another, he noted, and are
not necessarily his personal solutions.
“ I do think,” he explained, “that
the increase of $55 billion in debt and
$80 billion in assets can be gained
without resorting to wild schemes
such as sale of farm shares.”
Dr. Smith commented that banks
have to continue to play an important
role in financing agriculture. He said
it is vital in terms of recognizing im
proved farm management techniques
and needs. He pointed out that bank
ing’s share of farm financing de
creased from 77 per cent to 69 per cent
between 1952 and 1967. Why the de
crease, he asked? Some banks have
been hampered by a lack of funds
and size.
“ It’s easy to be negative in consid
ering these changes,” he stated, “be
cause it means a change in the status
quo. In the next 12 years, farmers
will look for credit to banks, coop
farm credit systems and life insurance
companies. The share of all farm
credit by banks will continue to de
crease unless banks nationwide make
the necessary changes legally, struc
turally and in policy to reverse the
trend.”
Selling Bank Services
Thomas R. Smith, president, First

National Bank in Perry, Iowa, had as
his subject, “Marketing Your Bank
Services.” He reiterated the challenge
heard in all the preceding talks for
bankers to “roll with the punch” with
today’s changing world so that they
can offer the full services as a finan
cial partner that the public needs to
day.
Northwestern Banker, April, 1968

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Federal Reserve Bank of St. Louis

“ I ’ve been having payroll deductions for
company stock ever since I started here
as a young man — I wish to announce, sir,
I now own 51 per cent o f the company.”

Mr. Smith said that a small bank
cannot be contented to have, as
A.B.A.’s President Howard Laeri de
scribes it, “mini-management.” He
said the tendency is too easy for the
small banker to be contented to stay
that way saying, “W e’re just a small
bank and our customers like it that
way.”
To be a growing bank, he urges
bankers to be on the street with full
services. “ If you can’t handle real
estate loans,” he advises, “ then get in
bed with a life insurance company.
The same holds true with other serv
ices.” He further urges bankers to
be aggressively competitive. “ If your
services solve people’s problems,” he
noted, “then you’ll make a bundle.”
Mr. Smith spent considerable time
discussing the need to hire the right
people, then providing them with a
good training program, regardless of
the bank size. These people, he re
minded, are the ones who will help
you sell your bank’s services wher
ever they go. “Don’t be so busy choping wood that you don’t stop to sharp
en your axe,” he cautioned.
A Look Ahead
Dr. Arthur A. Smith, senior vice

president and economist, First Nation
al Bank, Dallas, took a look at “What’s
Ahead for Banking in the Next Ten
Years.” Any bank executive in the
audience who hadn’t gotten the mes
sage yet that radical changes are upon
the business and more are coming,
certainly got the message from Dr.
Smith. He said he didn’t necessarily
like all the changes, but emphasized
that change and progress will not be
held back by one group and shouldn’t
be.

He feels that exploration of all pos
sible uses of electronic computers,
both as retail tool (credit cards,
charges at stores, etc.) and for inter
nal work by banks will be better de
veloped and perfected in the next 10
years. He predicted that 10 years
from now a larger and larger propor
tion of a bank’s earnings will be from
services, many of which are not now*
performed by banks.
He foresees one of these as counsel
ing services.
He predicted more aggressiveness
in the mortgage banking field, with y,
commercial banks possibly buying
mortgage banks; an expansion of con
sumer credit by extension of lines to
individuals, even for buying cars; ex-*
pansion of term lending; elimination
of compensating balances, replaced by
payment for services.
He said within 10 years commercial
banks may be able to put all financial r
institutions on the same basis, as op
posed to different tax ground rules as
at present.
Regarding interest rates, he said, “I
cannot see present high rates continu
ing, nor a return to federally manipu
lated low rates of 1950’s. Rates will
go lower than now when the present
emergencies are over, and will more
accurately reflect the cost of money.”
He said the bank administration
outlook is quite good and very encour
aging, for few businesses have shown
the advances in quality of manage
ment as in banking in the past 10
years. He foresees even greater se
lection of management as in banking
in the past 10 years. He foresees ^
even greater selection of personnel,
more extensive professional training,
and a decrease in family banks.
Dr. Smith said in 10 years there
will be few if any states left prohibit
ing branch banking and if states don’t
adopt it then the federal government
will probably force it. He does not
personally favor this, but believes it
will happen. By the same taken, he
foresees more regulation of banking
from the federal government in Wash
ington, with a possible, gradual disap
pearance of dual banking, and all
banks forced to be in the Federal Re
serve System.
At the conclusion of the Bank Sem
inar, it was evident from the fact that
all in attendance stayed through the
entire program, that the message of
change forecast in the speakers’ talks
made an impact on the bank execu
tives, whether they liked the idea
personally or not. Most comments
heard after the meeting labeled it
the best management program put on
yet by the Nebraska Bankers Asso
ciation.— End.

Io w a

News

115

spondent banking depart ment . A
hedging contest was also held and
prizes will be awarded in six months.
The First National Bank of Oma
ha’s program was highly informative
and entertaining as well. By a skill
ful combination of speakers who are
experts in the field, and mass partici
pation learning techniques, the ses
sion was very productive by inform
ing bankers, farmers and ranchers
about the operation of the cattle fu
tures market and its value to the cat
tle industry.—End.

Three Join North Central Life

TWO KEY SPEAKERS appearing at Chuck Wagon Roundup were (1. to r.): Karl F.
Heimke, v.p., Chicago Mercantile Exch., and Thomas J. Vaughan, mgr., commodity dept.
First Nebr. Securities, Omaha.

i'h nek W a y on Mtonnilnp

. .

(Continued from page 97)
er’s output has been increased great
ly in the past 10 years, Mr. Heimke
said that the specialization and re> suiting c o m p e t i t i o n have greatly
changed the agricultural profile and
the marketing procedures of agricul
tural products.
He explained also the function of
^the Chicago Mercantile Exchange as
providing “price insurance,” saying
that risk of loss due to price changes
can be transferred, via the futures
‘ market, to someone else who is more
willing to assume that risk, namely
the speculator. In 1964, the first live
stock futures were traded in Chicago,
thus offering an opportunity to hedge
(transfer risk) and possibly remove
some of the uncertainty from the in
dustry. Since 1964, over 550,000 fu
tures contracts have been traded with
a total value of around $3y2 billion.
“How Beef Cattle Features Really
Work” was the subject of the presen
tation by Thomas Vaughan, manager
of the commodity department, First
'►Nebraska Securities, Inc., Omaha.
Each of the 700 guests was given a
printed brochure explaining in out
line form cattle futures, complete
with practice worksheets. Using the
brochures and projected slides, Mr.
Vaughan explained in depth and with
clarity commodity trading and in spe
cific how beef cattle futures work.
His explanation of the subject cov
ered the types of markets, contracts,

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Federal Reserve Bank of St. Louis

conclusions and margins, the defini
tion of hedging, the art of hedging, es
timating the cost of feeding cattle,
and how to hedge in the cattle fu
tures market.
Going into more detail, the discus
sion covered the finer points of hedg
ing and such areas as delivery dates,
selection of a qualified broker, and ac
tual examples of hedging operations
conducted by the Ruser Feeding Com
pany. The entire audience, with the
g u id a nc e of Mr. Vaughan, then
worked out cattle hedge work sheets
when live cattle of various classes
and quality were put through “hedge
tests.” The opportunity of seeing and
participating in actual feeding and
hedging examples operated as a use
ful learning tool.
The hearty Chuck Wagon luncheon
featured championship roast beef.
The Taylor Sisters provided excellent
msusical entertainment during the
meal. On display during the day was
“Modern,” the 1967 Chicago Interna
tional Grand Champion Steer which
was purchased by the Chicago Mer
cantile Exchange from Anita Bulfer
and Marlene Wiseman of Gilman,
Iowa.
Following lunch, additional practice
hedging was done by the guests, and
various prizes were awarded for
guessing the combined weight of the
Grand Champion Steer and the mem
bers of the First National’s corre

J. Robert Stassen, president, recent
ly announced the appointment of
John R. Kemp, Victor J. Kozlowski
and S. W. Marshall, Jr., as Bank/Life
district managers for North Central
Life.
Mr. Kemp will cover a 15-county
area south and east of the Twin Cities.
He joins North Central with 17 years
of insurance experience, and served
as sales manager for Bank-O-MedicAmerica, NCL’s largest sales agency,
from 1965-1967.
Concurrent with the appointment
of Mr. Kemp came the announcement
that Mr. Kozlowski and Mr. Markell
have also joined the NCL staff as
Bank/Life district managers. Mr.
Kozlowski is covering an 11-county
area in Southwestern Minnesota, and
Mr. Markell is representing seven
counties north and west of St. Cloud.

Heads Credit Insurance
For Central States Firm
A veteran insurance executive with
nearly 20 years of service with Cen
tral States Health and Life Company
of Omaha was named last month by
that company’s board of directors to
the post of vice president, director of
credit insurance.
Robert C. Findlay, 46, a native of
Wichita, Kan., assumes the new post
immediately. Following graduation
from Baker University in Baldwin,
Kan., and service as a bombardiernavigator during World War II, Mr.
Findlay entered the insurance field.
He joined Central States in 1949 as a
field representative and became a re
gional manager in 1954. Six years
later he was named assistant vice
president and sales manager of the
credit insurance division, the post he
hold until his new advancement.

Named to College Board
John J. (Jack) Marget, president of
the Epworth Savings Bank, has been
appointed to the board of directors of
the Divine Word College, Epworth.
Northwestern Banker, April, 1968

116

Io w a

News

WANT ADS

Rates 25 cents per word per
insertion. Minimum: 12 words.
NORTHWESTERN BANKER
306 15th St.# Des Moines, Iowa
AGRICULTURAL CREDIT
A rapidly - expanding agriculturalchemical manufacturing and mar
keting corporation needs an ener
getic, sales oriented college grad
with a degree in agriculture or
business for Assistant Credit Man
ager position. Must have five years
banking or PCA loan experience,
and potential for promotion. Farm
background helpful. Job responsi
bilities include involvement in cor
porate wholesale and retail credit
policy formulation, administration,
and supervision. Will conduct cred
it meetings for salesmen. Credit
Department reports to Financial
Officer o f corporation. Light travel.
Midwest location. Starting salary
to $12,000. Write File TSC, c /o
Northwestern Banker, 306 15th St.,
Des Moines, Iowa 50309.

An Equal Opportunity Employer

ANALYZING PORTFOLIO . . .
(Continued from page 48)
average net income after taxes is $78,000, you will note that the increase in
the portfolio would be approximately
a 5 per cent increase in net earnings.
This example would not apply to all
banks, but it certainly indicates the
potential increase in net earnings by
a small increase in portfolio income.
In summary, we feel that every

bank can profit from a good portfolio
analysis. Even if there is no increase
in actual dollars, the banker can at
least be reassured that he is doing a
good job of managing his portfolio.
We hope we have at least made the
banker think about the necessity for
making an analysis of his investment
portfolio and made the banker aware
of the great potential in either taking
a good look at his portfolio himself or,
better yet, having it analyzed by his
city correspondent.— End.

C o n t in e n ta l I llin o is N a t io n a l B a n k an d
T r u s t C o m p a n y ......................................... 18-19
C o n w a y B r o t h e r s — F ir s t o f I o w a C orp. .102 W
C u r tis s 1000 I n c .................................................. 116 ,

D a v e n p o r t , F . E ., & C o ................................... 82
D e L u x e C h e c k P r in t e r s I n c o r p o r a t e d . . 25
D e n v e r U. S. N a tio n a l B a n k ....................... 76
D o a n e A g r ic u lt u r a l S e r v ic e , I n c ............... 30-*»
D o w n e y , C. B., C o m p a n y ............................. 10
D r o v e r s N a t io n a l B a n k ................................ I l l

APRIL. 1968
A

A c o r n P r in t in g C o m p a n y ............................ 116
A l l i s o n - W illia m s C o m p a n y ......................... 56
A m e r ic a n N a tio n a l B a n k an d T r u s t
C o m p a n y — C h ic a g o .................................... 71
A m e r ic a n N a tio n a l B a n k an d T r u s t
C o m p a n y — St. P a u l .................................... 55
A m e r ic a n S ig n an d I n d ic a t o r C o r p .......... 22
A m e r ic a n T r u s t a n d S a v in g s B a n k
— D u b u q u e .......................................................109

B a n k B u ild in g a n d E q u ip m e n t C orp . .11 -12
B a n k e r s T r u s t C o m p a n y — D es M o in e s .. 98
B a n k I n v e s t o r s — I o w a R e a l t y .................. 86
B a n k o f M o n t r e a l ............................................. 57
B e c k e r & C o w n ie , I n c ..................................... 50
B eh, C a r le to n D., C o ...........................................108
C

C e n tr a l B a n k a n d T r u s t C o m p a n y
— D e n v e r .......................................................... 79
C e n tr a l N a tio n a l B a n k a n d T r u s t
C o m p a n y — D es M o in e s .............................. 103
C h a se M a n h a tta n B a n k ................................ 29
C h e m ic a l B a n k N ew Y o r k T r u s t Co. . . . 33
C h ile s & C o m p a n y ........................................... 86
C o m m e r ce T r u s t C o.— K a n s a s C ity . . . . 93
C o m m u te r A ir lin e s ........................................ 22

rm
'~

" "A

BUYING
OR SELLING
A BANK?
Write or call collect

365-9117

Area Code 319

REGINALD FIGGE ASSOCIATES
Confidential Consulting Service
Merchants National Bank Building
Cedar Rapids, Iowa

... - ............................................... >
ADVERTISING HELPS;
For the agricultural banker— ads,
mats, editorials and newsletters
that sell full service banking to
farmers. Samples available. Farm
Business Council, Inc., P. O. Box
F, Urbana, Illinois 61801.

E a s tm a n K o d a k C o m p a n y — B u s in e s s
S y ste m s M a r k e ts D iv is io n .................... 21
E b in , R o b e r t s o n a n d C o m p a n y , In c. . . . 32
E m p lo y e r s M u tu a l C a s u a lty C o m p a n y . . 2 6
F
F a r m B u s in e s s C o u n c il .......................... 8 ,1 1 6 ^ .
F ig g e , R e g in a ld , A s s o c ia t e s ....................... 116
F ir s t N a t io n a l B a n k — C h ic a g o ................
9
F ir s t N a tio n a l B a n k — D e n v e r .................. 74
F ir s t N a t io n a l B a n k — K a n s a s C ity . . . . 27
F ir s t N a t io n a l B a n k — M in n e a p o lis . . . . 52
F ir s t N a tio n a l B a n k — O m ah a .................. 83 <
F ir s t N a t io n a l B a n k — S io u x C i t y ............ 73
F ir s t N a t io n a l B a n k a n d T r u s t
C o m p a n y — L in c o ln ...................................... 87
F ir s t N e b r a s k a S e c u r itie s , I n c ................... 88
G ross, K ir k , C o m p a n y ............................ 100-101
H

H a r r is T r u s t an d S a v in g s B a n k ..............
6
H e lle r , W a lt e r E., & C o m p a n y .................. 31
H u m m er, W a y n e , & C o ................................... 50

In s u r e d C r e d it S e r v ic e s , I n c ........................
7
I o w a - D e s M o in e s N a t io n a l B a n k . . . .49, 120
I o w a L e g a l B la n k & P r in t in g C o ..............116
I r v in g T r u s t C o m p a n y .................................. 51 *

L a S a lle N a t io n a l B a n k ...................................105
L a w r e n c e C o m p a n y ........................................ 15
L e F e b u r e C o r p o r a t io n .................................. 47

M a n u fa c t u r e r s H a n o v e r T r u s t C o .............
M a r q u e tte N a t io n a l B a n k .........................
M e rc h a n ts N a tio n a l B a n k
— C ed a r R a p id s .............................................
M id la n d N a tio n a l B a n k — M in n e a p o lis . .
M o r r is s e y & Co., I n c ........................................

17
59
T yf

61 >
50

N a t io n a l B a n k o f C om m erce-— L i n c o l n .. 91
N a tio n a l B a n k o f W a t e r lo o ....................... 107 .
N a t io n a l B o u le v a r d B a n k ........................... 24
N a tio n a l F id e lit y I n s u r a n c e C o ............. 72, 94
N e b r a s k a N a t io n a l L ife I n s u r a n c e C o ... 90
N ew Y o r k T e r m in a l W a r e h o u s e Co. . . . 20
N o r th C e n tr a l C o m p a n ie s ........................... 23
N o rth e rn T r u s t C o m p a n y B a n k ................
3
N o r th w e s t e r n N a t io n a l B a n k
— S io u x C i t y .................................................... 70
N o r th w e s t e r n N a t io n a l B a n k
— S io u x F a lls ................................................. 66

O ld S e c u r ity I n s u r a n c e C o m p a n ie s . . . . 34
O m ah a N a t io n a l B a n k .............................. 62-63
O m ah a P r in t in g C o m p a n y ........................... 84
O z a rk A ir L in e s ............................................... 65
R

R a h e l, J. C liff, & C o m p a n y ...........................

S c a r b o r o u g h & C o m p a n y .............................
4
S c h w e s e r , R o b e r t, & C o m p a n y .................. 89
S co t F a s h io n A p o a r e l .....................................119
S e c u r ity N a t io n a l B a n k — S io u x C ity . . . . 69
S haw , M c D e r m o tt & C o ....................................106 <
S q u a re D e a l I n s u r a n c e C o m p a n y ........... 28-4.
S to c k y a r d s N a tio n a l B a n k — O m ah a . . . . 85
S tu d le y , S h u p e rt T r u s t I n v e s t m e n t
C o u n c il ................................................................14

TP
U

T o y N a t io n a l B a n k — S io u x C i t y ................ 97

1E r3

SINCE

1882 . . . . .

s u p p l ie r to th e

banking

industry

C U R T IS lO O O

IN C .

1000 University Ave. * St. Paul, Minn. 55104

U n io n I n s u r a n c e C o m p a n y — L in c o ln . . .
U n ited S ta te s C h e c k B o o k C o m p a n y . . . .
U. S. N a t io n a l B a n k — O m a h a ....................

V a lle y B a n k a n d T r u s t C o m p a n y
— D es M o i n e s .................................................. 113
V a n H o r n e I n v e s tm e n ts , I n c ........................ 92
W

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Federal Reserve Bank of St. Louis

V re s t e r n -S o u t h e r n L ife I n s u r a n c e C o ... 14, y

Z ie g le r , B. C., & Co. . .

Northwestern Banker, April, 1968

95
96
80

117

The Bankers’ M arket Place
A Page Telling What’s New for Banks and Bankers

Each month the Bankers’ Market Place will bring you listings of new
products, specialty items, banking equipment, and gift items which will
help you and your staff do a better job. This is the selection for this month.
*

NEW system for handling savings transactions that is claimed
to improve service to savings custom
ers and encourage mail deposits has
, been announced by Cummins-Chicago
* Corporation and their affiliate, Allison
Coupon Company, Inc.
According to Cummins, use of the
» new Automated Savings Passbook
provides faster window service than
an on-line installation, permits ac
cepting deposits at any window, re
tains all the features customers like
in a passbook, and still provides automatic computer input and all other
benefits of a “no passbook” system.
No window posting machines or onv line teller stations are required. Pe
riodic statements mailed to custom
ers reduce peaks of lobby congestion
for posting of interest.
With the Cummins Automated Sav
ings Passbook, the customer makes
one entry, removes a transaction
ticket, and mails it with his check
in any envelope. He keeps his pass
book with the complete record of his
account, including that of the mail
deposit just made. When making a
deposit in person, the customer fills
in the book in the same way and
jhands it to the teller with the deposit.
The teller need only remove the trans
action ticket and receipt the book. For
more information write File CPB, c/o
N

o rthw estern

anker

thousand bankers and
S EVERAL
businessmen in the
area attended programs
N

ern

in key cities sponsored by the Nation
al Cash Register Company to intro
duce its new Century Series comput
ers last month.
Robert S. Oelman, chairman and
chief executive officer of National

F YOU are thinking of building a
Iernizing
new banking facility, or of mod
an existing one, Mosler in
vites you on an “idea tour” of today’s
modern bank—through the pages of
a new illustrated booklet.
On the assumption that many bank
ers are too busy to visit each other’s
facilities to learn what can be done
to build business, Mosler has put the
best of all the latest ideas and trends
it has seen into this 18-page brochure.
A fine section talks about efficient
record keeping in terms of profitable
operations and good customers rela
tions. For a complimentary copy of
the booklet, “ Take an ‘Idea’ Tour with
Mosler T h r o u g h Today’s Modern
Banking Office,” write to Mosler, 1561
Grand Bo u le var d, Hamilton, Ohio
45012.

CONVENTIONS
1968
April 8-10— AB A National Installment
Credit Conference, Conrad Hilton
Hotel, Chicago.
May

TIMELY new booklet, “How to
Make Your Postal Dollars Go
Further,” is free upon request from
Tension Envelope Corporation. In
convenient size for pocket or desk, it
contains an easy-to-read “Postal Rates
At a Glance” chart showing the recent
and future postal rate increases for
the various classes of mail as estab
lished by the recently passed Postal
Revenue Act of 1967.
The 20-page brochure gives helpful
>tips and suggestions on how various
styles of envelopes can be used to re
duce mail preparation costs, insure
speedier handling of mail by the post
office, or produce more response and
sales in return to the number of
postal dollars spent.
For a complimentary copjq write to:
Tension Envelope Corporation, Suite
^327, 19th and Campbell Streets, Kan
sas City, Mo. 64108.

orthw est

anker

Cash Register Company, says they ex
pect to install a minimum of 5,000 of
the new Century Series computers,
representing a total value of over $1
billion worth of the new equipment.
Rentals of the smaller members of
the family, the NCR Century 100 Se
ries, begin at $2,250 per month, or un
der $2,000 with a five-year contract.
The Century program represents an
investment of $150 million in research,
engineering, software, new produc
tion facilities and equipment, and in
training of marketing and service per
sonnel.

2-4— 76th Annual Convention,
South Dakota Bankers Associa
tion, Ramada Inn, Sioux Falls.

May 5-7— 71st Annual Convention, Ne
braska Bankers Association, Hotel
Cornhusker, Lincoln.
May 12-15— A B A Automation Confer
ence, Americana Hotel, Bal Har
bour, Florida.
May 15-17— 83rd Annual Convention,
North Dakota Bankers Associa
tion Grand Pacific Hotel, Bis
marck.
May 23-25— 66th Annual Convention,
Colorado B a n k ers Association,
B r o a d m o o r H o t e l, Colorado
Springs.
May 27-29— AIB 66th Annual Conven
tion, Statler Hilton Hotel, Buf
falo, N. Y.
June 2-5— AB A 8th National Mortgage
Conference, Benjamin Franklin
Hotel, Philadelphia.
June 3-14— Iowa Agricultural Credit
School, Iowa State University,
Ames.

June 10-12— 78th Annual Convention,
Minnesota Bankers Association,
Hotel Radisson, Minneapolis.
June 10-21— Stonier Graduate School
of Banking, Rutgers— The State
University.
June 13-15— 76th Annual Convention,
Wyoming Bankers Association,
Jackson Lake Lodge, Moran, Wyo.
June 20-22— 65th Annual Convention,
Montana
Bankers
Association,
Many Glacier Hotel, Glacier Na
tional Park.
August 11-23 — Colorado School of
Banking, University of Colorado,
Boulder.
August 12-24 — AB A National Trust
School, Northwestern University,
Evanston, Illinois.
August 19-30— Central States Confer
ence Graduate School of Banking,
University of Wisconsin, Madison.
September 29-October 2 — AB A 94th
Annual Convention, Chicago.
October 27-30— 82nd Annual Conven
tion, Iowa Bankers Association,
Hotel Fort Des Moines, Des
Moines.
October 27-30— A B A National Person
nel Conference, Sheraton-Chicago
Hotel, Chicago.
November 10-12— AB A 17th National
Ag Credit Conference, SheratonOklahoma and The Skirvin Hotels,
Oklahoma City, Okla.

Northwestern Banker, April, 1968

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

118

D ea r H eader:
When it comes to telling jokes, we
have withstood the groans, protests,
head-shakes and threats of banker
friends for many years. We just felt
sorry for them that they didn’t have
the same (ahem) keen sense of humor
that we have! But after what hap
pened in our last issue we must side
with those many readers who wrote
and telephoned us about this joke
page.
To their credit, some were most so
licitous about our health, for they
asked very discreetly: “Have you
been feeling well lately?” or “When
did the doctor say you’d be well?” or
in a more concerned manner, “Have
you had your head examined recent
ly?”
Others were a little more direct.
For example, several just plain up
and asked, “What’s the point of this
stupid joke on page 78?”
After several such phone calls and
letters, we felt we had a right to as
sume something might have gone
wrong. So we paid our 50 cents for
an extra copy of the N o r t h w e s t e r n
B a n k e r , turned to page 78 and found
that sure enough there was an unusu
al arrangement of jokes. In fact, three
jokes in some way had gotten dupli
cated and appeared on the same page
together. But the main cause of all
the trouble was this little gem, which
was one of those duplicated just like
this:

might as well have it as anybody
else.”
Now, that may not have been worth
waiting for, but there it is. For the
reader who wrote us, “ I’m waiting for
you to drop the other shoe,” well
there’s the other shoe.
Sorry about that, all you joke lov
ers!
* * =t=
When we were putting this issue to
gether we decided to feature the excel
lent talk on bank protection we heard
Marvin L. “Tony” Shay give at the
Minnesota Bankers Association Bank
Management Clinic in Duluth several
weeks ago. Mr. Shay is special agent
in charge of the FBI’s Minneapolis
office. His article is featured else
where in this issue, and it comes back
repeatedly to the recommended use of
cameras in banks to forestall daylight
holdups and to get pictures of those
bandits who do try it. He stated that
nine of every 10 robbers exposed to
the cameras are caught. We had this
cartoon sent to us right at that time
that was most appropriate.

“A True Bargain”

“A man and his wife once found a
gas bill on the sidewalk when they
were out for an evening stroll. The
man picked it up and looked it over
carefully. ‘I’m going to pay this bill,
Maggie,’ he said.
“ W hat do you want to do that for?’
his wife asked impatiently. ‘It isn’t
your bill.’ ”
Well, that was a fair question Mag
gie asked, but a better one asked by
all those readers was, “ It wasn’t even
funny the first time, and I still don’t
get it the second time—what’s the
catch?”
We went back and searched the
trays of type that hold our jokes until
they are ready to be released to the
world through this page. Sure enough,
there was the last paragraph, with its
punch line. Guess our printer thought
the joke was so bad it would be best
to run only half of it. In any event,
here is the missing paragraph, but
don’t say we didn’t warn you. It
picks up after Maggie very sagely ob
served, “ It isn’t your bill.”
“No, I know it isn’t,” he replied.
“ But there’s a discount on it, and I
Northwestern Banker, April, 1968

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

“ And you should have seen the crummy
pictures the automatic bank cameras
took of me!”

If you read Mr. Shay’s fine article,
you had an opportunity to take a look
at the “sequence” pictures on those
pages of an actual holdup taking
place. LeFebure Corporation in Ce
dar Rapids, Iowa, makes a number of
such camera installations and right
after we heard Mr. Shay’s talk we were
visiting at LeFebure, where these pic
tures had just come in from one of
their customer banks. The company
kindly loaned them to us for this is
sue. After looking at the character
holding the gun on the people at the
teller counter and stuffing money in
the bag, our cartoonist quickly drew
this cartoon:
That holdup man might not make

“ While you’re at it, throw in a book
of deposit slips.”

his withdrawals in the most accepted
and traditional way, but at least he’s
smart enough to know a safe place to
keep the loot after he’s taken it!
* * *
And this brings us to the recent
news report about the Canadian lady
who takes her children along while
she robs banks. At least she’s con
scientious about her motherly duties.
Too many mothers these days don’t
even know where their kids are!
* * *
There’s more than one way besides
the gun to extract money from those
who have it. W e’re reminded of the
preacher who told his church organ
ist:
“When I say all of you who want tov/j
contribute $100 toward the building” 1
fund please stand, you play some ap
propriate music.”
“Like what?” the organist asked.
The preacher replied, “Like the
‘Star Spangled Banner.’ ”
.* * *
All of which reminds us of a con
versation we had with an old banker
friend recently. Innocently enough,
we said, “ I heard a new story the oth
er day. I wonder if I’ve told it to
you?”
He i m m e d i a t e l y asked, “ Is it
funny?”
Drawing up a little indignantly, we
replied, “Of course.”
“Well, then,” he said, putting the*
knife in with a twist, “you haven’t
told it to me!”
At that point, we decided to turn t
this joke page over to someone else.
If any of you readers have a pet joke
that will jump right off the page and
make the reader slap his sides, send
it to us. W e’ll see if we can keep the,.,
punch line with the rest of the story. '
The Joke Editor

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Federal Reserve Bank of St. Louis

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

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