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R. J. PEROUTKA J. L. MILLER J. J. LARKIN C. R. FAIRS A. D. JOHNSON W. WHITNEY Annual Outlook For Bonds And Investments — Pages 31-44 T. L. RAY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R. J. WISSLER R. C. BELLINGER D. G. W ACHHOLZ F. K. SPINNER SPECIAL INTRODUCTORY OFFER! NOW! Save 8^ on MNB’s new Bond Portfolio Accounting Service! Yes, it’s true! If you act now you can save 8 (eight) cents on Merchants National Bank’s fabulous new Bond Portfolio Accounting Service! No risk, no obligation! Here’s all you do: contact MNB’s correspondent bank de partment and say you’re interested in this new, exciting service. One of our correspondent officers will arrange to get your bond portfolio information and feed it into our com puters. You will then be provided with a monthly, or quarter ly, statement containing a complete, updated analysis on maturity dates, yields, coupon expirations, and other de cision making data. Try MNB’s new Bond Portfolio Account ing Service for 90 days. If at the end of that time you aren’t completely satisfied, you can cancel the agreement and go back to the time consuming, burdensome task of doing it yourself. * MERCHANTS NATIONAL BANK C ED AR RAPIDS, IO W A 52401 This coupon entitles the bearer to eight cents ($.08), redeemable on acceptance of MNB’s New Bond P ort folio Accounting Service. Redemption can be made by contacting Merchants National Bank Correspondent Officers, John Mangold 398-4313; Thomas M artin 398-4306, or Terry M artin 398-4320; or Jerry Trudo 398-4314. Sorry, only one coupon per bank. Coupon expires October 31, 1971. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis > 3 Bond Portfolio. ♦ ♦ y Could computer analysis boost your profits? Ask the m en w ho w rote the b ook . Your b a n k ’s b o n d portfolio, given th e p ro p e r care an d a tte n tio n , can p ro v id e a significant p o rtio n o f y o u r b a n k ’s profits. T h e N o rth e r n T ru s t’s new ly developed B ond P ortfolio A nalysis Service for ev alu atin g all b o n d s in y o u r portfolio can h e lp you p ro d u c e m ax im u m n et e a rn in g s w ith m in im u m d e m a n d s o n y o u r organization. T h is n ew service c o m b in es m o d e rn m a n a g e m e n t science te c h n iq u e s, co m p u te r technology, a n d o u r extensive e x p e rien ce w ith o u r o w n b o n d portfolio. U sin g these skills, y o u r N o rth e rn T ru st b a n k e r w ill w ork closely w ith you to develop an in v e stm e n t program th a t suits y o u r precise needs. For fu rth e r in fo rm a tio n , co n tac t y o u r N o rth e rn T ru st r > b a n k e r wTh o w ill be pleased to discuss th is service w7ith you— o r call N . Fiall L aym an, V ice P resid en t. Trust Northern... All your money matters matter to us. NORTHERN TRUST COMPANY BAN K 5 0 S. LA SALLE S TR EE T AT M O N R O E C H IC A G O 6 0 6 9 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . F in a n c ia l 6 - 3 5 0 0 * M e m b e r F .O .I.C . N orth w estern Banker, A p ril, 1971 4 Your bank needs a bank that gives you prize-winning trust investment performance. * t V * 1 Consistently. I t’s to o b ad th e re isn ’t an aw ard like this. If th e re were, m ore people than just the C orrespondent Banks we serve would hear about C hem ical’s trust investm ent perform ance record. How do we do it? W ell, it isn’t done w ith m irrors. It’s all due to astute, quick-thinking investm ent officers who stay on top of the national and international situation. To a sound philosophy of investm ent. A nd to research th at provides them w ith the right inform ation for making the right decisions. Inform ation we’re glad to share w ith you through six special re p o rts: E co n o m ic T re n d s, In v e stm e n t F o recast, U. S. B anking D e v e lo p m e n ts, In d u stry Studies. Special Reports (topical subjects of immediate interest), and M arket Ratings on some 250 stocks. O u r m arket ratings are up-dated every week and sent to every Chemical C orrespondent Bank w hich subscribes to this service; others are distributed as we develop new inform ation or as m arket requirem ents dictate. A nd if these d o n ’t give you enough inform ation to solve a special problem, one of our senior invest m ent officers is available at all times for personal con s u lta tio n , to discuss general b u sin ess c o n d itio n s , particular industries, specific companies and the stock m arket outlook. So if you’d like to share C hem ical’s investing re search and experience, just call Mr. R obert Jennings at (212) 770-1607. You may also w ant to ask him or your Chemical Bank Representative for a copy of our new booklet,“ T rust Investm ent Advisory Service,” which describes all these services in fuller detail. O r write to C h em ical B ank, N a tio n a l D iv isio n , D e p t. T IA S , 20 Pine Street, New York,N.Y. 10015. C h em ic a l We do more for your money. ,, V N ofor r t hFRASER w e s t e r n B a n k e r , A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis X M- e i) Named Foundation Trustee * Donald E. L asater, ch airm an of the board and chief executive officer, M er cantile T ru st Com pany, N.A., St. Louis, Mo., w as elected to a three-year term as trustee-atlarg e for the F o u n d a t i o n for Service F u l l B a n k s at the F o u n d a t i o n ’s m em bership m eet ing. The F o undation for F ull Service Banks conducts a $3 m illion national ad v ertisin g and prom otion program to educate th e pub lic about th e advantages of F ull S erv ice B anking. C urren tly , m ore th a n 6,200 banks, rep resen tin g 72 p er cent ,o f deposits in th e U nited States, are F oundation m em bers. Oldest Financial Journal Serving The Central and Western States for your APRIL, 1971 reading 7 7 th Y ear No. 1283 EDITORIALS 14 A cro ss th e D esk fro m th e P u b lish e r FEATURE ARTICLES 6 12 18 20 24 27 46 103 B a n k P ro m o tio n s a n d C h an g es S ta te S u p e rv iso rs C onvention C o rp o ra te N ew s B ank M a rk e tin g R eg io n al C onvention C a le n d a r B A I N o rth e rn R egional In s u ra n c e P ro g re s s R e p o rts L eg al Q uestions and A n sw ers ANNUAL BOND AND INVESTMENT OUTLOOK 31 32 33 34 35 36 37 38 40 42 44 W e C a n ’t Go H om e A g a in — Wheelock W h itney B u ilt-In H edge f o r 1971— Donald G. Wachholz C u rre n t B a n k In v e s tm e n t S ta te g y —A la n D. Johnson T re n d To L ow er R a te s N o t O ver— C. Ronald F a irs R ecom m end S h o rte r M a tu ritie s — R o bert J. W issler T re a s u ry T a x an d L oan A cco u n t S u b sc rip tio n s, P ro fita b ility — R obert J. P erou tka A M oney C e n te r B an k a n d Its O utlook fo r 1971 — R ichard C. Bellinger W a it fo r “ G am e P la n ” to U n fo ld — John J. L arkin B an k E a rn in g s an d th e In v e s tm e n t F u n c tio n — F ra n k K. S pinner Good V alue W ill Be A v ailab le— Thomas L. R a y E x p e c t U p tu rn in M a tu ritie s T h is F a ll— Jam es L. M iller STATE BANKING NEWS Illin o is M in n eso ta T w in C ities S o u th D ak o ta N o rth D a k o ta M o n ta n a C olorado W y o m in g N ew s N ew s N ew s N ew s N ew s N ew s N ew s N ew s 49 53 54 61 63 63 64 66 69 N e b ra sk a C onvention P ro g ra m N e b ra sk a N ew s L incoln N ew s O m ah a N ew s Iow a N ew s Des M oines N ew s 69 78 80 93 98 OTHER FEATURES 106 106 In th e D ire c to rs’ Room A d v e rtis te rs In d ex NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309, Phone 515—-244-8163 C hairm an Clifford DePuy A ssociate E d ito r Dexter Sidney P ublisher Malcolm 8C. Freeland E d ito r Ben Haller, Jr. A ssociate E dito r Richard R. Stumbo A d v e rtisin g A s s ista n t Mildred Savich C irculation D e p a rtm e n t Lena Sutphin A u d ito r Bertha Soderquist Field R e p rese n ta tiv e AI Kerbel Field R e p rese n ta tiv e Paul Masters Field R ep rese n ta tiv e Glen Hicks N o 1283. N o rth w e stern B a n k e r is published five tim es m o n th ly by th e N o rth w e stern B an k e r C om pany, 306 F ifte e n th S tree t, Des M oines, Iow a 50309. S ub scrip tio n 50e p e r copy, $6 p e r y ear. Second class p o stag e paid a t Des M oines, Iow a. A ddress all m ail (subscription, change of address. F orm 3579, m a n u scrip ts, m ail item s) to above address, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B anker, A p ril, 197Ì 6 cWljen it Comes to Portfolio Evaluation cTlfeib’s a Place for Nitpicking A n d K irc h n e r, M oore a n d C o m p a n y ’s c o m p u te r-b a c k e d portfolio e x p e rts are n it-p ic k e rs w h e n it c o m e s to a n a ly z in g y o u r m u n ic ip a l b ond portfolios to e lim in a te low y ield s an d a s s is t y o u in a d d in g n e w m u n ic ip a l is s u e s to in c re a se e a rn in g s . O u r q u a rte rly P o rtfo lio E v a lu a tio n S erv ice h a s b ee n re fin e d o u t of six y e a rs ’ e x p e rie n c e w o rk in g w ith b a n k s , in s u ra n c e c o m p a n ie s a n d o th e r o rg a n iz a tio n s, larg e an d sm all, w h o m a k e m u n ic ip a l b o n d s an in te g ra l p a rt of th e ir in v e s tm e n t p ro g ram . In ad d itio n to portfolio e v a lu a tio n , w e o ffer a c o m p le te ly c o m p u te riz e d s e rv ic e w h ic h in c lu d e s aid to b a n k e rs in tax -lo ss tra d e s. D aily n e w is s u e an d s e c o n d a ry m a rk e t h e lp a n d o n -th e -s c e n e in v e stig a tio n of n e w is s u e s c o m b in e to p ro v id e from o n e s o u r c e —K irc h n e r, M oore — c o m p re h e n s iv e m u n ic ip a l bond s e rv ic e s of s ig n ific a n t v a lu e to all fin a n c ia l in s titu tio n s in M id -A m eric a. O u r n it-p ic k e rs in O m a h a are T e rry W ard an d C h a rle s V an a. A re q u e s t, on y o u r le tte rh e a d , will b rin g full in fo rm a tio n . A p h o n e call will se t u p a p e rs o n a l a p p o in tm e n t im m e d ia te ly . GKirchner. Moorei&Company Tax exempt municipal bonds exclusively' MMAVoodmen Tower. Omaha 68102 (402)345-0505 c O IsoFDen ve/N PGcSan Francisco N o for r t h FRASER w e s t e r n B a n k e r , A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hank (V o r a o iw n anti Chant/es ROMOTIONS and announcem ents have been m ade by th e following banks and groups: Hank of America, San Francisco: Jackson L ittle, a native of Des Moines and a v eteran of two decades of varied a d v e r t i s i n g experience, has been nam ed d irector of advertising. He suc ceeds C harles R. S tuart, Jr., w ho re cently w as advanced to vice presidentd irector of m ark etin g services. Mr. L it tle has served as the b a n k ’s ad v ertis ing m anager since joining the bank six y ears ago. He w as graduated cum laude in 1940 from C ulver M ilitary Academy in Culver, Ind., th en attended Stanford U niversity. He began his ad vertising career in 1951 and w orked as a copy w rite r for a n u m ber of y ears at McC ann-Erickson A dvertising Agency in San F rancisco before joining the B of A. At th e agency he devoted m uch of his tim e to supervising the b an k ’s m ulti-language “Man on the Spot” cam paign. In an o th er appointm ent, B of A an nounced th a t A ndre Boysen will be vice p resid en t and m anager of the B ank of A m erica In tern atio n al of Chi cago office opening in th a t city in April. It is a wholly-owned subsidi ary of B of A. Chase Manhattan Bank, New York: Jo h n M. Em ptage, D ennis C. Longwell and Joseph J. McCulla have been elect ed vice presidents. Mr. E m ptage deals w ith corporate custom ers and m ajor co rrespondent banks in New Jersey. Mr. Longwell is on th e b a n k ’s corpo rate staff departm ent. Mr. McCulla serves p etroleum com panies in the w estern p a rt of the U nited States. First National Bank of Chicago: E lection of Donald J. Yellon as vice p resid en t and general counsel, effec tive Ju ly 1, w as announced by Chairm an G ay lo rd F reem an f o l l o w ing a M arch m eet ing of th e board of directors. C hris to p h er W. W il son, executive vice president a n d head of th e b a n k ’s executive d ep art m e n t , s a i d Mr. Yellon will take D. J. Y E L L O N up his new duties as head of the d ep artm en t’s law divi sion after com pleting his w ork as a p a rtn e r in th e Chicago law firm of D’Ancona, Pflaum, W y att & Riskind, w ith w hich he has been associated since 1948. Mr. W ilson will continue to serve as general counsel of the bank u n til Ju ly 1. P P. C. M O R T O N M. E. R O TTM A N N Mr. F reem an also announced several other prom otions as follows: P eter C. M orton and M aurice E. R ottm an to vice presidents, tru s t de partm ent. N am ed assistan t vice presidents were: , Jam es A. E dw ards, in Loan D ivision F, serving banks and bankers; R ichard M. C’Conn o r, ad m in istra tive departm ent; R ichard L. Koleh-, m ainen, Loan Di vision A; P eter W. King, Loan Di vision L; R obert V. H erb ert and H arold A. L am J. A. E D W A R D S bert, tru s t d ep art m ent; R onald H. B ohnsak, personal banking departm ent; H einz-Jurgen En-j gelbert and W alter W. H. H uslage, intern atio n al banking section. First National Bank, Kansas City: M. Leon Hall has been elected senior vice p resid en t of F irs t N ational C har te r Corporation, according to Gordon E. Wells, presid en t of the corporation^ He said Mr. Hall w ill continue to de vote the m ajority of his tim e to his * position as p resid en t of W ebster Groves T ru st Company, th e fo u rth af filiate of F irs t C h arter Group. F ord R. Nelson, executive vice p resi d en t in charge of the F irs t N ational B ank’s tru s t division, retired March 1, after 25 y ears of service w ith the „ bank. He had headed the tru s t divi sion, w hich ran k s am ong th e top 100 in th e nation, since Ja n u a ry , 1967. His responsibilities have been assum ed by R obert J. W h arton as senior vice presi-A dent in charge of the tru s t division, and W illiam L. Atwood as senior vice > president in charge of the investm ent division. R oland F. N eaves w as prom oted from a ssistan t vice p resid en t to vice p resid en t in the com m ercial division. Mrs. D orothy B. N orby w as nam ed an a ssistan t tru s t officer. Jo h n M. Erics- 4 son, w ho recen tly com pleted a 19m onth active to u r of d uty w ith the A rm y Signal Corps, has been reap- I Farm experts at The First like Ben Hauenstein and Jud McManigal have years of experience in agricultural financing. They understand farm operations— talk farm talk. And they are ready to participate in agricultural loans. They can help you serve customers who are expanding their livestock and crop operations to increase farm profits. Or, they can help with term loans for capital investments in machinery, equipment, and facilities to improve efficiency and increase profits. The farm specialists in Division F know how to get the money. Yet helping you help your customers with agricultural loans is just one of the many ways our correspondent bankers give you expert service. We also can help you solve problems involving commercial loans, international banking, cash flow, internal operations, and many more. Why not talk to a banker whose only customer is his correspondent— you. Make your first call The First — (312) 732-4132. The First National Bank o f Chicago C H IC A G O • L O N D O N • DUBLIN • PARIS • BRUSSELS • FRANKFURT • DÜSSELDORF G EN E V A • M ILAN • A T H E N S • BEIRUT • M EX IC O C IT Y • PA N A M A C IT Y K IN G S T O N • T O K Y O • SIN G A P O R E • IN LO N D O N : FIRST C H IC A G O LIMITED IN N E W YO RK: FIRST C H IC A G O IN T ER N A T IO N A L B A N K IN G C O R P O R A T IO N • MEMBER F .D .I.C . idTdvtnr ir- lt m m } mm r i :® H ¿ i XV m ■m The First pecialists to call for overline he p on agricultura loans. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w estern Banker, A p ril, 1971 8 IS YOUR BANK’S INVESTMENT PORTFOLIO FULLY EFFECTIVE 1 In addition to providing maximum earnings (IF it is providing maximum earnings), is your investment portfolio fully meeting your bank’s needs in re spect to liquidity . . . to seasonality . . . to cylical and secular trends . . . to your local economic conditions . . . to the type and composition of your accounts . . . to the influence of your dominant accounts . . . to the liquidity require ments of your loan portfolio? Studley, Shupert & Co., Inc., of Philadelphia believes that each of these questions must be asked—and the an swers to each thoroughly analyzed— in order to measure bank investment portfolio effectiveness. Moreover, these questions must be asked continuously . . . and efforts must be made to mini mize all negative elements and to capi talize on all positive elements revealed by the answers. In giving substance to our philoso phy of bank portfolio effectiveness, we do not offer merely an “analysis serv ice” or a “guidance service" or an “ad visory service.” Instead, ours is a full time management service. It is designed to save you work . . . to improve your bank’s earnings . . . and to maintain your portfolio so that it always meets your bank’s varying needs. Our explanatory brochure is avail able to interested bank officers. Write. A CO.. INC.. OF PHILADELPHIA S T U D L E Y , S H U P E R T A C O ., IN C ., O F PH ILA D ELPH IA 860 Suburban Station Bldg., Phila., Pa. 19103 Digitized N o r tfor h w FRASER e s t e r n B a n k e r , A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pointed an assistan t cashier and as signed to the in tern atio n al d ep art m ent. First National Bank in St. Louis: F o u r vice p resi dents w ere ad vanced to senior vice presidents by the directors at th e annual m eet ing. T h e y are W alter R. Klosterm eier, head of the personnel de partm ent; H arry L. Sm ith, head of H. L. S M IT H the correspondent b anking departm ent; F ra n k K. Spin ner, senior in v estm en t officer and head of the bond de p a r t m e n t , and R obert E. W hal en, controller of the b ank and con tro ller of F irs t Union, lie. F ir s t National City Bank, New York: P e t e r J. B arber has been e l e c t e d a vice F . K. S P IN N E R president. He is a m em ber of the m anagem ent team responsible for stock tra n sfe r opera tions in th e b a n k ’s operating group. Harris Trust and Savings Bank, Chicago: Shareholders approved a 25 p er cent capital dividend at th eir an nual m eeting on M arch 10. K enneth V. Zw iener, presiding at his last m eet ing as chairm an of the board, also announced the election of th ree new directors, raising the total of directors from 20 to 21. New directors are D an iel C. Searle, p resident of G. D. Searle & Company; H untington H arris, tru s tee of the estate of N orm an W. H arris, and Chalkley J. H am bleton, the new p resid en t of the bank. Jo h n G. Searle, chairm an of the G. D. Searle firm, and George S. Allen, w ho retired as exec utive vice presid en t of the bank in 1969 after a career of 48 years, retired from the board. Mr. Z w iener w ill rem ain as a director of th e bank. He introduced the new top m anagem ent team to the board. T heir appointm ents had been a n nounced earlier in the year. W illiam F. M urray, p resid en t since 1968, is now chairm an and chief executive officer. Stanley G. H arris, Jr., form erly senior vice president, is new vice p resid en t of the board. Mr. H am bleton, now p res ident, had been senior vice president and secretary. Two new executive vice presidents of th e b ank w ere also elected. Theo dore H. R oberts w as nam ed executive vice president, general adm inistration, K. V. Z W IE N E R W . F. M U R R A Y S, G. H A R R IS , J R . C. J. H A M B L E T O N T, H. R O B E R T S C. M. B L IS S and Charles M. Bliss becomes execu tive vice presid en t and head of the banking departm ent. v Mr. R oberts joined th e b ank in 1953 and after a period of train in g w as a * m em ber of the financial and economic research d ep artm en t from 1954 to 1966. He is at p resen t in charge of general adm in istratio n w ith the re sponsibility for the com ptroller’s and operations departm ents. He w as m ade senior vice p resident and com ptroller * in 1968. Mr. Bliss joined the bank in 1944 and has also been a senior vice presi dent since 1968. Manufacturers Hanover Trust, New York: The advancem ent of Donald W. v B aker and L aw rence H. Bober as sen ior vice presidents in the b a n k ’s m etro politan division w as announced last m onth. Michigan Avenue Financial Group, < Inc., Chicago: R ichard L. Curtis, p res ident, announced last m onth the elec- x tion of M aurice N orm an and R obert Irsay to th e board of directors. Mr. N orm an, a well-known registered phar- 9 Existing accounts who use free Line (or give-away) Checks are regarded by most banks as a necessary evil. They would like to reduce the number of such customers in order that the bank be relieved of the check expense, but there is generally little oppor tunity to personally convert these people to fully Personalized Checks because most re orders are mailed to the bank. Reorder time, however, is the most op portune time to talk to the customer about Personalized Checks and introduce him to the many new checks and checkbook styles available. With the cooperation of hundreds of banks, we have developed this new “ Short Stop” program, and it has been most suc cessful in obtaining new Personalized Check users at little additional expense. Briefly, instead of reordering for the cus tomer his same Line Check package, the customer is sent a specially designed com plimentary package of fully Personalized Checks. A miniature, four color catalog is included, and a letter explaining the change is either sent direct to the customer or in cluded with the package. The customer response to such a free order has been gratifying. They do not re sent this change and are pleased to have the new checks that offer so much more prestige and convenience. All necessary promotional material is furnished without charge. May we tell you about this effective plan? We have a detailed brochure avail able and would be pleased to send you one . . . or just ask your Deluxe representative. D E L U X E C H E C K P R IN T E R S , INC. SALES H D Q TR S.. 3440 N. KEDZIE, CHICAGO, ILL. 60618 STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn Banker, A p ril, 1971 10 Have you ever wondered ju st how "protected dollars” are able to keep Home Improvement Loan portfolios loss free? First...what are 'protected dollars' ? W hen you m ake H om e Im p ro v em en t L oans under th e Insured C red it Services plan of lending, you are fully protected against re p ay m e n t d efau lt of an y kind. You can w eath er th e storm s of uncer ta in econom ic conditions and know th a t y o u r portfolio is g u aranteed safe . . . th a t th e dollars you lend are g u aran teed and alw ays have th e ab ility to rep ay them selves. T h a t’s w h at “ p ro tected dollars” really are! Here's h o w Insured Credit S e rv ic e s can guarantee you extra profits... U nder o u r u nique cred it p ro tectio n plan, banks receive 100% reim b u rsem en t of th e u npaid principal balance plus in terest and costs on losses arising from b a n k ru p tc y , m arital difficulties, strikes, skips, over-obligation and sim ilar causes. You can ’t lose . . . because w ith ICS, y o u ’d be lending only “ p ro tected d ollars” and y o u ’d be assured of e x tra profits a t no risk. H u n d red s of banks across th e natio n are doing it. How a b o u t you? Write today for informative brochure D o n ’t take c h a n c e s — S h ift the ris k to /. C. S . IN S U R E D CR ED IT S E R V IC E S IN C . Arthur J. Frentz, Chairman o f the Board Leland C. McCal/um, President N o r tfor h wFRASER e s t e r n B a n k e r , A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 0 7 N o r th M ic h ig a n A v e n u e C h ic a g o , I llin o is 6 0 6 0 1 m acist and re sta u ra n te u r, is p resid en t of the Pittsfield B uilding R estau ran ts and C art R estau ran t. Mr. Irsay is p resident of th e R obert Irsa y Com pany, one of th e w o rld ’s larg est sheet m etal contractors, located in Skokie. National Boulevard Bank, Chicago: Charles W. W ay joined th e real estate d ep artm en t as an assistant v i c e president, accord ing to Irv in g Sea m an, Jr., chief ex ecutive officer. Mr. W ay received his B.A. degree f r o m Bowling Green S tate U ni v ersity and his M. B. A. f r o m c. M . W A Y W estern R eserve U niversity. In addition, he has a G raduate Certificate from th e A.I.B. and is a grad u ate of the N ational M ortgage School at Ohio State U niver sity. He has 16 y ears of b anking ex perience and m ost recently w as assist a n t vice p resid en t of an o th er Chicago bank. Security Pacific National Bank, Los Angeles: P rom oted to vice p resid en t at a recent board m eeting w ere Jam es R. Thom as, tru s t departm ent; H ow ard A. Gunkel, m anager of the Colton branch, and R obert T. P arry , economic research division. Two m en w ere nam ed a ssistan t vice p residents in the in tern atio n al b an k ing d ep artm en t — C ourtney H. Casebeer III, and E dgar G. Protiva. M e r c a n tile Trust Company, St. Louis: Donald E. L asater, board chair m an, has announced th e election of Jam es H. M artin as vice president, and the prom otion of th ree o ther officers: V ictor E. Kolde and A than M ertis, as sistan t vice presidents, and Jam es A. Hayes, b anking officer. Mr. M artin has been w ith the bank since 1969 and is a m em ber of th e banks and ban k ers departm ent, calling on correspondent banks in so u th ern states. P rio r to com ing to M ercantile, Mr. M artin w as w ith both th e N ational Stockyards B ank in Illinois and the F ederal R eserve B ank in St. Louis. Mr. Kolde has been w ith M ercantile since 1927, and since 1932 has been a m em ber of th e discount departm ent, of w hich he is cu rren tly in charge. Mr. M ertis, w ho joined M ercantile as a train ee in 1967, has w orked in both the m etropolitan d ep artm en t and national accounts, w here he is presnetly serving. Mr. Hayes, a g raduate of M issouri Valley College, M arshall, Mo., sta rte d w ith the b an k M arch 1. ¥ * ■ % . *. w V 11 * Now what? “As I say, our Loan Committee can’t see an Equipment Loan for you right now . . . . Another angle of approach would be to get in touch with LeaseAmerica Corporation, in Cedar Rapids. We’ve had good experience with them. By leasing, you can get the equipment now w ith out really touching your working capital.” f V ■4 1+ America C orporation Home Office: 200 American Building Cedar Rapids.. Icwa 52401 F ree Call https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1-800-772-2051 N o rth w e ste rn B anker, A p ril, 1971 12 State Supervisors to Meet ia Colorado Springs. A pril 14-17 E N A T O R Thom as J. M cIntyre (D-N.H.), C hairm an F ra n k Wille of the F ederal Deposit In su ran ce Cor poration and Clifford C. Sommer, p re s ident of The A m erican B ankers Asso ciation, w ill be am ong th e featured speakers at th e 70th A nnual Conven tion of th e Conference of State B ank Supervisors w hich w ill convene at The B roadm oor H otel in Colorado Springs, Colo., April 14-17. C hairm an W ille will be the keynote speaker on T h u rsd ay m orning. He will be preceded by Donald I. B aker, dep u ty director or policy p lan n in g of the a n titru s t division of th e D epartm ent of Justice, w ho w ill discuss recent tren d s in his d e p a rtm e n t’s policies concerning m ergers, tr u s t d ep artm en t S activities and other areas w hich v ital ly concern th e banking industry, and CSBS P resid en t C. W. Culley, com m is sioner of finance of M issouri, w ill re view the C onference’s m ost significant accom plishm ents du rin g the past year. F rid a y m orning w ill featu re an ex ecutive session of the C onference’s su p ervisory m em bers and a b a n k e rs’ only session presided over by Max G. Brooks, chairm an of the board of the C entral B ank and T ru st Com pany of D enver, Colo., and vice chairm an of the CSBS advisory council. The fea tu red speaker at th e b an k ers’ session w ill be Jam es E. Sm ith, special assist a n t to th e Secretary of the T reasu ry for legislative liaison w ho w ill discuss “B anking in an E ra of Challenge.” Mr. Sm ith w ill be followed by a panel of Conference officers and staff m em bers w ho w ill review the organization’s cur re n t activities and goals. Senator M cIntyre w ill be th e fea tu red speaker at th e an n u al banquet on F rid ay evening. He w ill address him self to th e U nited S tates’ c u rre n t involvem ent in S outheast Asia. A fter Mr. M cIn ty re’s talk, the association’s officers for th e com ing year w ill be installed. The final session on S aturday m orn ing w ill begin w ith an address by ABA P resident Clifford Som m er, who is also president of the Security B ank and T ru st Com pany of O w atonna, Minn. The general session w ill conclude w ith a panel discussion of “D ynam ic Decen tralizatio n ” w hich w ill featu re the H onorable R obert B. Docking, Governor of Kansas; N orbert T. Tiem ann, form er governor of N ebraska; th e H on orable A lbert Spradling, State Senator from Missouri; the H onorable F red O. Dickinson, State C om ptroller of F lo r ida, and C. Gale Sellens, presid en t of th e Colorado B ankers A ssociation. The convention w ill conclude w ith a recep tion and luncheon on S aturday noon. * * * -l * 1 *r Form Holding Company THE PRUDENTIAL 10N 221618 IN S U R A N C E C O M P A N Y O F A M E R IC A NORTH CENTRAL MOME OFFICE GENERAL ACCOUNT MINNEAPOLIS. MINN. °'TC NOV 3 0 1970 ILLINOIS BANKERS ASSOCIATION INSURANCE TRUST»** ORDER OF * 5 *8i+9f>9* " l u l ‘ 00 a m Î-sâ+SéÇ.ÛO* L-597 FIRST NATIONAL BANK OF MINNFAMUS NIUNCINI IS, HINA <• ì ì l& IB"* : s -ÜOÜe«: soos ?su» 1 0 10 It was recently our pleasure to present the Trustee of the Illinois Bankers Asso ciation with a check for $84,969. This represented the dividend payable under the Illinois Bankers Association Group Life and Accidental Death and Dismem berment Plan for the year ended Septem ber 1, 1970. 4C PERCENT? This dividend reflects a return of 40% of the total premium paid in the past year, reducing each participating bank's u lti mate cost of life insurance proportionate ly. These dividends, of course, are not guaranteed, but are based on the experienceof all banks under the Plan. : inancial Insurance Service is Administrator for Employee Benefit Programs or both the Illinois and Oklahoma Bankers Associations. f in a n c ia l sen a east devqn IN SU R A N C E S E R V IC E , INC. * d e s p l a i n e s , Il l i n o i s b o q i b « 312 / 2 9 7 - 4 6 6 0 avenue N o r t h w e s t e r n B a n k e r , A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Donald E. L asater, chairm an of the ^ board, announced th a t M ercantile Bancorporation Inc., St. Louis, officially becam e a registered bank holding com- r pany. At this tim e the holding com pany is com prised of tw o wholly- v owned subsidiary banks, M ercantile T ru st Company, N.A., and M ercantile Commerce T ru st Company. M ercantile B ancorporation Inc. is ex pected to consum m ate th e exchange of stock w ith shareholders of S outhern M issouri T ru st Com pany of Spring- ' field, Mo., in early April. I t also has pending a ten tativ e proposed acquisi tion of M ercantile B ank and T ru st Com pany of K ansas City. The acqui sition of this bank is expected to take place in m id-sum m er of this year. At year-end M ercantile T ru st Com- * pany and M ercantile Comm erce T ru st Com pany had com bined total assets of $1,351,711,485. The additions of S outhern M issouri ,* and M ercantile of K ansas City w ill add an o th er $100,000,000 in assets. O ther th a n Mr. L asater, the princi pal officers of the holding com pany are H arriso n F. Coerver, president; Jam es E. Brow n, executive vice president, * and J. R ichard Skouby, secretary. Mr. L asater also announced th a t th e v corporation w as co ntinuing to explore other bank acquisitions th ro u g h o u t the state in w hich it feels it can m ake a valuable co ntribution to the com m u n ity in w hich these banks are located. 13 S I T E S 'N E E D E D ... T O R A T H O U SA N D Investors and lenders are making money right now with mobile home 'subdivisions’ C H O M ES ACDAY • Actually many more than a thousand a day. Over 404,000 mobile homes were produced in 1970, which was 46% of ALL new home sales. 1 Mobile homes are manufactured faster than home sites are being made avail able. In many areas mobile home de velopments are proving to be the best— as well as the quickest— way to provide good housing most people can afford. Substantial investments are required; typically $2,500 to $3,500 per home site . . . and the developments accommodate 100 to 500 or more homes. Million-dol lar projects are common in this field. ► MAKE NO MISTAKE, today’s mobile homes are a far cry from the ‘trailers’ of yesteryear. They offer more square feet of living space than many an apartment, more closet and storage space . . . are well insulated . . . are sold furnished and equipped — with name-brand major ap pliances including disposers, dishwashers, laundry equipment and central air-con ditioning — all as options. Many luxurious mobile homes are built to nationally-recognized standards cov ering construction and plumbing, heat Home Work Awaits! Both meanings. Land developers and fi nancial people stymied by the cost-price squeeze are turning to mobile home de velopments as ‘the’ way to stay in home work. And there is homework, too . . . ing and electrical installations. Many of the manufacturers have been in business twenty, twenty-five or thirty years; they enjoy well-earned reputations for prod uct quality and good business policies. There are special techniques to be learned and applied; there are prelim inary studies to be made and analyzed. Dependable guidance IS available from the 35-year old Mobile Homes Man ufacturers Association. They have de signed parks with more than one mil lion sites during the past 15 years; they offer you help, via the coupon below. Why not take advantage of it — today? Long-term financing is now available on mobile homes under FHA and VA and from Savings & Loan Associations. Financing o f the parks is eligible under FHA. Facts available to you show profit of 25% and more on equity after debt service. If you do not have the facts — why wait longer? * MOBILE HOMES MANUFACTURERS ASSOCIATION Dept. NWB-4 6650 N orthw est H ighw ay, C hicago, ill. 60631 (Free selected literature) Gentlemen: Please send me the material checked at left; remittance to cover items (B) and/or (C) is enclosed, making it unnecessary to open an account for this one-time transaction. Site-planning Kit $ 7.00 Name Firm (C) Book, “ Formula for Financing Mobile Home Developments” — N. G. Asbury Address City____ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State. N orth w estern B anker, A p ril, 1971 14 y f- (DsuaA^ (D lv . f lo u t S '- W adhA : P rofesso r of Business A d m in istra tion , R u tg e rs U n iversity, N e w B runsw ick, N e w Jersey What is the economic background within which banks will have to operate in the present decade ? You have presented an answer to this question, placing emphasis on the following areas: 1. The capital shortage will mean a continuous fight for funds. Banks will have to maintain attractive savings rates, will have to develop new fund raising techniques like the Real Estate In vestment Trust, the mortgage banking operation, and the small denomination debenture, and will have to recognize that basic demand deposit growth can no longer be counted on as being enough in any bank. 2. Regulation Q apparently will have no greater a role than as a standby restraint, as the flight of funds from banks into open market securities has shown that interest rate ceilings do not work. Thus the savings and loans will gain more authority to diversify their powers, as a way of keeping them viable in the absence of effective interest rate ceil ings on the banks. 3. The response of the commercial bank will have to include greater aggressiveness in all areas of operation, and it will be aided bv a more gen erous Federal Reserve discount policy to provide longer term funds to the banks. But even so much of the bank response will have to be through di versification into new fields. 4. In this diversification, the banks will continue to be hampered by their image problems, unless they can now do something to solve these prob lems. The attempts to.make the prime rate a less significant economic indicator are typical of the answers that can be developed on image. But with the public still feeling that funds are allocated poorly, with the mortgage market recently suffer ing while funds were available for credit card loans, the banks have a major job ahead of them in proving their commitment to economic growth and social goals, while explaining to the public that a bank is not a “fat cat” with money to place every where but rather that it is a conduit—using the N o r t hfor w eFRASER s t e r n B a n k e r , A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis public’s money and responsible for its safety. 5. Bankers will also have to convince youth that banking is a good place to work—and that making the pie of economic goods and services is just as challenging and important a task as redistributing the pie once it is made. 6. Finally, bankers will undoubtedly have new services to worry about—such as the possible mu tual fund service, and they will have major prob lems, such as whether bank credit cards should take over other credit cards in the nation, and whether economic growth of the bank’s own com munity is really the goal the people want and con sider to be an ultimate good. (D e a n . JC . C L. ( R a n d jc d L : Vice Chairman, U n ited V irg in ia B ankshares, Inc. Richmond, V irg in ia During the recent ABA National Marketing Conference in Dallas, you warned bankers to gird themselves for both a political battle and a competitive intrusion by savings and loan associ ations into such traditional service areas as check ing and short-term lending to consumers. With your permission, we might add one addi tional service—the writing of insurance—which is an important income factor for hundreds of banks in the N o r t h w e s t e r n B a n k e r area. Talman Services Corp., a wholly-owned service corporation of Talman Federal Savings & Loan Association, Chicago, has received a state license to operate an insurance agency in Illinois. Many other savings and loan associations are expected to jump into the insurance business in the near future. Talman Federal has not yet asked the Fed eral Home Loan Bank Board for approval. But since Preston Martin, chairman of the FHLBB, has urged savings and loans to establish service corporations and has specifically mentioned their entry into the insurance business, Talman Federal is not expected to have any trouble getting ap proval. Talman Federal and the industry may get some static from the insurance industry which may view this as unwanted competition. ^ I f there were some kind of cut-and-dried formula to help a hank assess its performance, then serving correspondents would be something a com puter could handle. You’d only have to crank in the figures and crank out the answer. But, a bank can’t be accurately evaluated without some idea of its potential. This is where the right kind of correspondent serv ice can act as a sounding board for ideas . . . tell you what banks in other communities are doing . . . discuss different performance areas. / What is your potential for new business? J For financial performance, for portfolio %V . management, or achieving economies on p a\ \ internal operations? 1# At Continental Bank, our corresponIt 'p' dent officers can help you evaluate your jj potential. And then offer a wide range I}' / of expert services to help you reach it. / Some o f the Continental%■ men serving the north cen tral and western states: Sam A ddoms Steve Melcher CONTINENTAL BANK Continental Illinois National Bank and Trust Company of Chicago, 231 South LaSalle Street, Chicago, Illinois 60690. Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w estern B anker, A p ril, 1971 16 V A L L E Y CEN TER will rise 35 sto n e s high and will be the ta lle st building in the Southw est. This composite p ictu re shows the model of the V alley N a tio n a l’s new home oftice building and p a rk in g fa c ility (rig h t) superim posed ag ain st Phoenix skyline. lim ili làriuniti for W it's \ r i r Oft'irr Crntrr in lOiorni.x cerem onies w ere held in Phoenix, Ariz., last m onth for Valley N ational B an k ’s new hom e office building in dow ntow n Phoenix. P re se n t for th e cerem onies we-9 A rizona G overnor Jack W illiam s, P hoenix M ayor Jo h n Driggs, Valley B ank P resid en t E a rl B im son and Val ley C hairm an Jam es P atrick. A pproxim ately 300 persons took p a rt ro u n d brea k in g G in th e groundbreaking, lined around a w hite outline of the Valley Center. Each had his own T rue Tem per shov el, p resen ted by VNB for the cere mony. The center covers a two-block area. A helicopter hovered over the center at 480 feet d u ring gro u n d b reak ing to m ark the height to be reached by the h ighest of a cluster of th ree tow ers. The th ree tow ers will be 31, 33 and 35 stories high. The unique shape will afford te n an ts w ith as m any as six co rner offices, or the ability to occupy as little as a portion of a floor, have a corner office, and m ain tain a separate id en tity from th a t of his neighbors. A su nken plaza w ill su rro u n d the tow ers. A one-block square p arking stru c tu re th a t w ill have two levels be low ground and six above ground, w ill handle 1,800 cars. Fed Schedules Forums A new small ¡5 " ) dial used at teller windows helps prevent s ta tic fro m cus tom ers a b out de posit entry dates . . . gives the bank reason to say "W e trie d to tell you." W ith changing hours in bank ing, long weekends & holidays, the need is a p pare nt. The self easeled wheels are p rin ted in "Expressway" green fo r good v is ib ility in small space, cost $1.95 ea. ( I to 49) or $1.75 ea. (50 or o v e r). Tellers wheels are available fro m : Rex Farrall, Inc., P.O. Box 888, C anton, O hio 44701, Phone 216— 456-5603. Two series of economic forum s—six m eetings in N ebraska and seven in Colorado—have been scheduled by the F ederal R eserve B ank of K ansas City for A pril and May. The program s are designed to provide ban k ers w ith anal ysis of the latest developm ents in business, agriculture, and finance. T hree econom ists from th e b a n k ’s research d ep artm en t—Dr. Thom as E. Davis and Dr. Glenn H. Miller, Jr., re search officers, and Dr. C. E dw ard H arshbarger, ag ricu ltu ral e c o n o m is twill speak at each program . The N ebraska series, sponsored in cooperation w ith the N ebraska B ank ers Association, w ill begin A pril 13 in Omaha and includes m eetings in L in coln, Norfolk, G rand Island, N orth P latte, and Scottsbluff. George C. R an kin, vice p resid en t in charge of the b an k ’s Omaha branch, w ill be forum chairm an. The Colorado forum s are stated to s ta rt May 3 in G rand Junction. O ther program s w ill be held in D urango, La Ju n ta, Colorado Springs, Denver, F o rt M organ, and Greeley. The series is sponsored in cooperation w ith the Colorado B ankers A ssociation. John W. Snider, vice presid en t in charge of the b an k ’s D enver branch, w ill be for um chairm an. The K ansas City Fed schedules eco nomic forum s each year in th e states of the T enth D istrict. M eetings w ere last held in N ebraska and Colorado in the spring of 1969. N orth w estern Banker. A p ril, 1971 4. * t 1 K Northern Trust Stock Dividend Approved V At the an n u al m eeting of The N o rth ern T ru st Company, Chicago, last m onth, stockholders approved a pro posal to increase the capital stock of the bank from 2,000,000 shares to 2,500,000. Capital funds for th e additional stock w ere supplied by th e tran sfer of $10,000,000 from undivided profits, bringing capital stock and su rp lu s of the bank to $110,000,000. In other action, stockholders voted to increase th e size of the board of directors to 16. The existing 15 direc tors w ere re-elected, and K arl D. Bays w as elected to fill the new directorship. Mr. Bays is president and chief execu tive officer of A m erican H ospital Sup K ply Corporation. GENERAL UNITED LIFE IN S U R A N C E Jk e ,.) dome Don Naehtm an Eastern Iowa P.O. BOX 1302 # of (C red it COM PANY Jdn5uran.ce Jim Vande Kamp W estern Iowa DES M O IN E S . IO W A 50305 Phone (515) 274-3561 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F V 17 meOrangeJuiceExpress . . . or how Franklin helped a Florida correspondent get Tropicana's "Great White Train" rolling Imagine a mile of pure orange juice rolling up the coast every eight days from the Florida groves to the Northeastern market! An exciting concept! That's Tropicana's "Great White Train"— a mile-long string of specially constructed cars that now rushes orange juice from Bradenton, Florida, to the distribution center in Kearny, New Jersey. It's all part of the company's program to control quality from the tree to the consumer's table. Imaginative marketing takes imaginative financing... and that's where Franklin National came in! The First National Bank of Bradenton, Florida, which had been financing Tropicana along with a group of Florida banks, called on Franklin N ational and together the banks cooperated in making availab le the funds to meet Tropicana's needs." Franklin's N ational Division quickly arranged the participation. Today, the "G re a t W hite T rain" is a fa m ilia r sight speeding pure orange juice to market. A t Franklin, we are committed to helping w orthw hile businesses grow. O ur team of seasoned professionals has the experience to provide correspondents with efficient service and understanding counsel. For im aginative correspondent b a n k in g ... call on Franklin N ational. Address inquiries to: Roger D. Elton, Executive Vice President, National Division, Franklin National Bank, 410 Madison Avenue, New York, N.Y. 10017 y *> * FRANKLIN NATIONAL BANK Where Money Has Im agination R esources over $3,400,000,000 M e m b e r Federal D ep o sit In s u ra n c e C o rp o ra tio n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w estern B anker, A p ril, 1971 18 ORPORATE prom otions and an nouncem ents of special in te re st to readers of th e N orthwestern B anker include the following: American Express International, New York: Jam es D. Robinson III has been elected president, and R ichard F. B lanchard, w ho has been president, has been elected vice chairm an. Both elections, announced last m onth by H ow ard Clark, chairm an, are effective A pril 26. C J. D. ROBINSON R. F. BLANCHARD In his continuing capacity of execu tive vice p resid en t of th e p a re n t A m er ican E x p ress Com pany, Mr. B lanchard w ill become responsible for its in v est m ents and for in v estm en t policy m at ters generally. Mr. R obinson w ill be come chief executive officer of the in tern atio n al corporation and w ill con tinue as executive vice p resid en t of A m erican E x p ress Company. Bank Building C o r p o r a tio n , St. Louis: A ndre J. P iot has joined the firm as sales de velopm ent direct o r. Previously, he w as project m anager and m a r k et developm ent m anager for Mons a n t o Chemical C o m p a n y and p rio r to th at, he w as E u ro p ean sales m anager for Controls, A.G., in Sw itzerland. Mr. P iot g rad u ated from the In stitu te of Technology in Bienne, Sw itzerland, w ith a degree in m echani cal engineering in 1944. Colt Industries Pump Division, Chi cago: L. C. (Lou) Thom as has been nam ed ad m in istra to r of th e in te rn a tional division and will be responsible for in tern atio n al traffic m anagem ent of F airb an k s Morse Pum ps. He will rec om m end and ad m in ister m ark etin g policies w hile m ain tain in g favorable relations w ith U nited States com pa nies hav in g financial in terests in in ternation al areas. N o r t h w e s t e r n B a n k e r , A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Delta Corporation of America, Miami, Fla.: Officials announced last m onth th a t 1970 gross incom e and p er share earnings w ere th e highest in the firm ’s history. N et incom e w as $1,260,232 ($1.21 p er share) on gross incom e of $14,911,036, com pared to net incom e of $662,409 (74 cents p er share) on gross incom e of $7,109,965 for the previous year. G ilbert A. H aas, president, said the doubling of gross incom e b rought a 90 p er cent increase in n et earnings. D elta’s board voted in early M arch to split the common 5-4, w ith th e 25 per cent additional shares to be dis trib u te d A pril 19 to stockholders of record on M arch 22. Delta is the n a tio n ’s oldest m obile hom e financial service com pany engaged in arran g in g and servicing mobile hom e loans th ro u g h approxim ately 300 com m er cial banks and savings and loan asso ciations. DeLuxe Check Printers, St. Paul: J. L. Rose, president, announced last m onth th a t the com pany has started construction of additional facilities for existing plants at th ree locations. A 16,000 square-foot addition to the p re se n t St. Louis building w ill be ready by early sum m er. In C hatsw orth, Calif., a separate 43,000 square-foot building, to be ready by fall, w ill be used for production of personal check packages. The new facility w ill p erm it expansion of the regional w arehouse w ith in the p resent building and elim ination of 15,000 square feet of leased w arehouse space. C onstruction w as to sta rt last m onth on a 65,000 square-foot plan t in H ous ton to replace D eLuxe’s presen t leased buildings and provide adm inistrative h ead q u arters for a planned Southern Region. Com pletion is planned for early 1972. Diebold, Inc., Canton, O3iio: Thom as H. K enny has been appointed division al vice president, Diebold Division, it w as announced by R aym ond Koontz, president. Mr. K enny will supervise m ore th a n 1,200 m an u factu rin g em ployees in four of the com pany’s plants. E a rl F. W earstler, vice president and b ank division general m anager, an nounced these appointm ents: Law rence Donat, director of m arketing for F u tu ra A utom atic B anking Systems; F ra n k S. Piedad and Jim R. Griffith, regional m anagers, A utom atic B ank ing System s, and R obert L. Staib, sales tra in in g supervisor, bank division. Farmhand, Inc., Hopkins, Minn.: C. F. Pierson, chairm an of F arm hand, Joseph F riedm an, chairm an of Chromalloy A m erican C orporation, recently announced agreem ent to m erge F a rm h and into Chrom alloy or one of its sub sidiaries on the basis of .725 of a share of Chrom alloy com m on stock for each share of o u tstanding F arm h an d stock. A Ten per cent of the total Chrom alloy shares to be issued in th e m erger are contingent shares dependent upon F a rm h a n d ’s 1971 earnings. Iowa Power and Light Company,*, lies Moines: A t a special m eeting on M arch 17 directors established Ju n e 30, a 1971, as the date for the com pletion of legal req u irem en ts and conditions nec essary to consum m ate the consolida tion of Iow a Pow er and Iowa-Illinois Gas and E lectric Com pany and re- ^ solved th at, if a closing date for the consolidation has not been set by the * tw o com panies p rio r to th a t date, the consolidation will be abandoned. The board entered into th e plan of consoli dation w ith Iow a-Illinois on Ju ly 18, 1969, w hich established a date of Ju n e 30, 1970, after w hich eith er Iowa Pow er or Iow a-Illinois could abandon + th e plan if th e consolidation w ere not accom plished. Kampgrounds of America, Billings, Mont.: D arrell Booth, president, has rep o rted consolidated sales and operat- ^ ing revenue for 1970 increased 37 per cent over 1969, m oving from $4,330,145 to $5,919,764. N et earnings w ere up 33 per cent, going from $419,694 to $559,325. E arn in g s per sh are w en t from 52 cents to 62 cents. LeFebure Corp., Cedar Rapids: Je rry W. R udrauff has been appointed to the hom e office sales division staff. F o r k the p ast 11 y ears he has been w ith Cummins-Chicago Corp., the p ast six ' as regional m anager of the New York and Connecticut areas. Mobile Americana Corp., St. Paul, Minn.: F. P aul H argarten, president, announced last m onth th a t first quar- v te r gross incom e w as th e h ighest in the firm ’s history. N et incom e w as * not as high as the previous year due to “certain n o n recu rrin g expenses,” he stated, and these w ere for start-up _ costs for offices in K ansas City, Mo., area and G rand Rapids, Mich. 4 Gross incom e for the th ree m onths ended Ja n u a ry 31 w as $740,662, com- * pared w ith $558,607 for the preceding y e a r’s first qu arter. Net incom e was $31,573, com pared w ith $42,972 the p re vious year. Mr. H arg arten also announced the * sta rt of a new program in the indem n ity division w hereby the firm will buy mobile home sales contracts from dealers and resell them to banks and S&L’s w hich do not have th e ir own mobile hom e loan operations. Northland Homes, Inc., Duluth, Minn.: G regory Blodgett has been 4 CORPORATE NEWS . . . (T u rn to page 22, please) 19 The less N ic h o la s Price V ice P resident A n d re w E. G e rm e r V ice P resident John J. S tine V ice P resident James M . Brow n Asst. V ice P resident R obert L. S tone r Asst. V ice P resident can help you. They're headquartered at California's Security Pacific Bank, one of the ten largest banks in the country. 561 S. S p rin g St., Los A n g e le s , C a. 9 0 0 1 3 . Phone (213) 620-6211 / O n e E m b a rca d e ro C enter, San Francisco, C a. 9 4 1 1 1 . Phone (415) 9 8 9 -9 8 2 2 CENTRAL REGIONS/CORRESPONDENT BANKING DIVISION SECURITY PACIFIC BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w estern Banker, A p ril, 1971 20 1*1a n H u n k M a i 'k e t i n f j i t e y i o n a t F. J. B L A K E G. M. M A L E N have now been com pleted for all sp eakers and panel leaders w ho w ill ap p ear a t the B ank M arketing A ssociation’s R egion al Conference scheduled May 19-21 at th e new R adisson South Hotel, Bloom ington, Minn., according to G eneral C hairm an Gordon M. M alen, a ssistan t vice president, F irs t N ational B ank of M inneapolis. A rrangem ents R ichard A. E rickson, vice president, M idland N ational B ank of M inneapo lis, is co-chairm an. It is expected th a t b an k ers from M innesota, W isconsin, th e D akotas, M ontana and Iow a w ill atten d th e R e gional Conference. Them e of th e conference is “E S P — R. A. E R I C K S O N 10:35 R. B, B E A L E x p an d in g Sales P rofitably in the 70’s.” The com plete program follows: Wednesday, May 19 P.M. 4:00 R eg istratito n and E xhibits. 6:00-7:00 “E arly B ird ” Reception. Thursday, May 20 A.M. 8:00 R egistration and E xhibits. 9:00 O pening Cerem onies — P resid ing: Gordon M. Malen, F irst N ational Bank, M inneapolis. 9:15 “Staff M otivation in a Climate of C hange” — L a rry W ilson, chairm an of the board, W ilson L earn in g C orporation, M inneap olis. 10:15 Coffee and E xhibits. Presiding: G. Reed M acomber, Roseville S tate B ank. ^ “The U rgency of Social Involve m ent on M ain S tre e t”—N orm an Ross, vice president, T he F irs t N ational B ank of Chicago. 11:20 “How Y our B ank Can Benefit from B anking’s New Action S tory”—R ichard B. Beal, execu- A tive vice president, F oundation for F u ll Service B anks, P h ila delphia. 11:40 “How to Take F u ller A dvantage of New B ank M arketing Tech n iques” — F red erick J. Blake, ^ senior vice president, C entral N ational Bank, Cleveland, Ohio. P.M. 12:00 Luncheon and F ashion Show a t poolside, G arden Court. P resid ing: R ichard A. E rickson, Mid land N ational Bank, M inneapo- * lis. > 2:00 “How to E v aluate and Effective ly Use P rem iu m s” — George W eigl, president, George E. W eigl Company, New Y ork City. “How to Get More Out of Adver- * tising Specialties as a M arketing Tool”—F ra n k D. M itchell, BANK MARKETING . . . (T u rn to page 22, please) M- Tell Your Story . . . A Career Girl Spring Thing does just that— “ telling your story through fash ions.” The Tee Look (pictured left) is just one of six separate and distinct ensembles made of Dacron* (a total of 52 custom designed pieces) that lets you choose the business atmosphere you want. Sedate and classic or a spirit of fun thru flaired pants, capes and coulottes, the story is your organization, and our Spring Thing will tell it fo r you. Yes, we are interested. Please send more details. NAME_____________________________________ TITLE____________________________________________________________ ORGANIZATION________ _____________________ ADDRESS__________________________________ CITY ______________________________ STATE______________________ ZIP_________ _ (Check One) WE ARE CURRENTLY USING EXECUTIVE ATTIRE. YES □ NOD NUMBER OF EMPLOYEES — MALE____FFMAI F ’ DuPont registered trademark N o r t hfor w eFRASER s t e r n B a n k e r , A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Z 21 i, -y \ i -•i V There’s a famous dynamic performer in career apparel. It’s Fortrel. When you're choosing career apparel for your em ployees, you want more than just great fashion. Perform ance counts. And doubleknits of 100% Fortrel polyester are rigorously pre-tested in the fabric to the highest per formance standards. Tested for durability. For machine washability and dryability. For color-retention. And com fort in any climate. Fortrel means more fashion, too. Because it helps apparel to resist wrinkles, bagging, stretching and shrink ing. Creases stay creased, uniforms stay neat through wearing and processing. If career apparel doesn't perform in these areas, it isn't doing the job for you. And if a fiber doesn t perform, it isn't called Fortrel. For further information call collect, (212) 867-2000, EXT. 2635, Celanese Fibers Marketing Co. % B1ELA N ESE i ^ R T R E L A Celanese fashion fiber in tested fabrics Celanese® Fortrel® is a trademark of Fiber Industries, Inc https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w estern Banker, A p ril, 1971 22 BANK MARKETING . . . (C ontinued from page 20) 3:00 3:20 4:10 6:00 9:00 10:00 10:15 Siegers, M arine N ational Bank, M ilwaukee, Wis. 11:00 “How to Get G reater Im pact from P rom otional E v e n ts” — T hom as J. Degnan, assistan t vice president, M anufacturers H anover T ru st Company, New York City. 11:45 “The F in al W ord—Nam e of the Game Still Is Selling”—A shton J. A lbert, vice president, T ru st C om pany of Georgia, A tlanta. P.M. 12:30 L uncheon and A djournm ent.— End. president, M itchell A dvertising Company, M inneapolis. Coffee and E xhibits. “How to Accom plish More W ith Your A dvertising D ollars” — Jo h n W. F orney, Sr., president, Jo h n W. F o rn e y Inc., ad v ertis ing agency, M inneapolis. Clinic on New M arketing Ideas (H ot and Not So H ot): K erm it R. B ergland, vice p re si dent, F irs t N ational Bank, W i nona, Minn. L eonard E. Griffith, vice p re si dent, F irs t A m erican N ational 25 Per Cent Dividend for B ank, D uluth, Minn. American National, Chicago Reception. D irectors of A m erican N ational Cor Friday, May 2i poration, one-bank holding com pany of Presiding: Gordon M. M alen, A m erican N ational B ank and T ru st F irs t N ational B ank, M inneap C om pany of Chicago, have increased olis. th e cash dividend on com m on stock by “How to M anage T ensions in a 25 p er cent to an an n u al ra te of $1.25 Clim ate of C hange” — Thom as p er share. The q u a rte rly cash divi N. Thiss, executive vice p resi dend of 31.25 (3144) cents p er share dent, W ilson L earn in g C orpora declared w ill be payable A pril 15, 1971, tion, M inneapolis. to stockholders of record A pril 8. Coffee and E xhibits. In addition, th e board also declared Presiding: Jo h n E. R yan, N o rth a 25 p er cent stock dividend on th e w est B ancorporation. com m on stock, subject to approval by “How to R esearch and In tro stockholders of a 500,000 sh are in duce N ew Services” — K eith crease in th e authorized common stock. The proposal w ill be presented ** at a special m eeting of stockholders set for May 11, 1971. If approved, A m erican N ational’s shares o u tstan d ing w ill increase to approxim ately 2,500,000 from 2,000,000 shares. At th e sam e tim e, th e board also ± elected as a d irector E d w ard W. Duffy, presid en t and chief o perating officer ^ of th e U nited States G ypsum Com pany. B of A Capital Issue B ank of A m erica has announced plans to issue up to $100 m illion of capital notes. The action w as approved at a board of directo rs’ m eeting last m onth. If approved by the C om ptroller of th e C urrency, the b a n k ’s c u rre n t plans are to m ake the capital notes available to its custom ers d irectly th ro u g h its California b ran ch netw ork. It w ill be A pril before th e notes are actually offered for sale. P re se n t in ten tions are to provide a seven and one-half year term w ith th e in te re st ra te on th e notes to be established on th e basis of m a rk e t conditions a t the tim e of th e ir offering. T he notes w ill be offered in m ultiples of $1,000. f * * r 4 CORPORATE NEWS . . . (C ontinued from page 18) PROTECT YOUR FARM LOANS Prompt repayment of the farm loans you make each year depends heavily on the farm management skills of the borrower. More than ever, the successful farmer needs — and searches for — new facts on agriculture, and how to make his operation more profitable. Now, you can supply these facts with Doane’s FARMING FOR PROFIT — the authoritative monthly farm newsletter devoted ex clusively to professional up-to-the-minute farm management information. FARMING FOR PROFIT makes friends for your bank wherever it's read. It makes better customers out of them, too. And is another way to help protect every farm loan you make. SPECIA L GET ACQUAINTED O F F ER ! Evaluate FARMING FOR PROFIT yourself! Send your name and bank letterhead. You'll receive 6 months (6 issues) of Doane's FARMING FOR PROFIT— FREE! Address Duane Gorr, Manager, Bank Services. DOANE AGRICULTURAL SERVICE, INC. 8900 M anchester Road • St. Louis, Missouri 63144 N orth w estern Banker, A p ril, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1971 nam ed chief financial officer for the firm and its subsidiaries. He joins N o rthland from M ayfair Sound P ro d ucts, Chicago, w here he served as tre a su re r since 1970. Piper, Jaffray & Hop wood, Minneap olis: The opening of th ree additional offices brings to 30 th e n u m b er of branch offices operated in nine upperm idw est states by P JH , M inneapolisbased m em ber of the New Y ork Stock Exchange. T he new offices are in Pocatello and Idaho Falls, Idaho, and M issoula, Mont. The offices w ere form erly occupied by Goodbody and Company, and p rio r to th a t w ere p a rt of th e J. A. H ogle In v estm en t organization th a t m erged into Goodbody in 1964. N am ed office m anagers are N at E. A nderson, Jr., Idaho Falls; H orace S. Howell, Poca tello, and F. Dean M ahrt, M issoula, all form erly w ith Goodbody. Square D Company, Park Ridge, 111.: The acquisition of Sorgel E lectric Cor poration, M ilwaukee, by Square D w as com pleted recently. F re d F. Koeper, Sorgel’s p resid en t since 1966, w as elect ed chairm an of Sorgel Electric; W alter C. K endall w as advanced from execufive vice p resid en t to p resid en t of Sor gel, and Jerom e M. F ra n k , vice president-m arketing, w as elected to Sorgel’s board. V^ '' " * * *■ v 23 Your retirem ent watch may be beautiful. but H it’s the only financial security your bank offers you’re both in trouble. Financial independence for retired workers is a very real and human problem faced by bank management today. Many correspondents solve it effectively through skillfully-planned employee benefit programming. And that’s where Manufacturers Hanover comes in. As the leading American bank supplying employee benefit plans to correspondents, we offer a highly-flexible program that not only protects the individuals involved . but also has many important side benefits for the participating bank itself. It’s called The Retirement Program for Correspondent Banks. Through it, your bank— regardless of its size— has available the advantages of the most modern pension plans used by the nation’s largest institutions. Advantages tailored to your individual situation. And presented at the lowest possible cost. Our 8-page booklet briefly describes the key features of The Retirement Program A copy is yours for the asking. „ ________ __ _ _ _ Just mail the coupon. MANUFACTURERS HANOVER TRUST 350 Park Avenue. New York. N Y. 10022 Employee Benefit Plans Department Gentlemen: Yes, I am interested in learning more about your employee benefit programs for correspondents. Please send me □ Your 8-page booklet describing The Retirement Program, a highly-flexible pension plan Also, descriptive information on Manufacturers Hanover’s □ Group Life Insurance Plan □ Long Term Income Protection Plan □ Group Major Medical Expense Insurance Plan We'll also be happy to send you information on Manufacturers Hanover’s other fringe Benefit programs, including our Group Life Insurance Plan, our new Long Term Income Protection Plan, and our new low-cost Group Major Medical Expense Insurance Plan. There isn’t a better time than now to contact us. Name_ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n k e r , A p r i l , 1971 24 IN V E N T IO N S April 14—Iowa Bankers Association Annual State Banking Confer ence, Johnny & Kay’s Hyatt House, Des Moines. April 14-17 — NASSB 70th Annual Convention, Broadmoor Hotel, Colorado Springs. April 21-24—ABA Executive Council Spring Meeting, The Greenbrier, White Sulphur Springs, W. Va. April 27-28—Illinois Bankers Associ ation Annual Trust Conference, Stouffer’s Inn. St. Louis, Mo. April 27-30—North Dakota Bankers Association annual trip to Wash ington. D. C. April 28-30—Bank Marketing Institute Regional Conference, Washington Plaza Hotel. Seattle. May 2-4—Nebraska Bankers Associa tion 74th Annual Convention, Omaha Hilton. Omaha. May 2-5 — Bank Marketing Institute Officer Call Workshop, Ambas sador Hotel, Chicago. May 3-5—ABA National Automation Conference, Americana of New York, New York City. May 9-11—BAI 21st Northern Region al Conference, Statler Hilton Ho tel, Detroit. Tension promotional and systems credit card envelopes. Performance-proved by hundreds of banks. If your bank is now involved in a c re d it card program or if you’ re now “ th in k in g it over” . . . le t us show you sam ples o f prom otional and system s envelopes developed fo r success fu l program s nationw ide. Our experience can save you many costly and tim e-consum ing details. Call a Tension S pecialist o r con tact: T E N S IO N E N V E L O P E CORPORATION 2100 E. 17th Street Des Moines, Iowa 5030S Send for FR EE Booklet FACTORIES: S. Hackensack, New Jersey / Memphis, Tenn. / St. Louis, Mo. / Des Moines, Iowa / Minneapolis, Minnesota / Kansas City, Mo. / Ft. Worth, Texas / Los Angeles, California. Digitized N o r tfor h wFRASER e s t e r n B a n k e r , A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis May 12-14 — North Dakota Bankers Association 86th Annual Conven tion, Fargo. May 13-15—Association of Registered Bank Holding Companies 11th An nual Meeting, Radisson Hotel, Minneapolis. July 18-21—International Flying Bank ers Association 1971 Convention, Pheasant Run T.odge, St. Charles, 111. May 19-21—Bank Marketing Institute Regional Conference, Radisson South Hotel, Minneapolis. May 19-22 — American Safe Deposit Association 40th National Con vention, Pfister Towers, Milwau kee. May 20-21 — South Dakota Bankers Association 79th Annual Conven tion, Sioux Falls. July 18-23—Midwest Banking Institute 5th Annual Session, University of Minnesota Campus at Morris, Minn. May 23-26—Bank Marketing Institute, Marketing Research Conference, Marriott Motor Hotel, Atlanta. May 23-26—ABA 11th National Mort gage Conference, Radisson Hotel, Minneapolis. May 23-28—ABA International Mone tary Conference, Munich, Ger many. May 24-26—AIB National Convention, Astroworld Motor Hotel Complex, Houston. May 27-29—Colorado Bankers Associ ation 70th Annual Convention, Broadmoor Hotel, C o l o r a d o Springs. June 2-4—Illinois Bankers Associa tion 80th Annual Convention, Palmer House, Chicago. June 6-9—Minnesota Bankers Associ ation 81st Annual Convention, St. Paul Hilton Hotel, St. Paul. June 6-9—Minnesota Bankers Associ ation 81st Annual Convention. St. Paul Hilton Hotel, St. Paul. lune 6-12—Bank Marketing Institute, Essentials of Bank Marketing Course, University of Colorado, Boulder. June 6-18—Stonier Graduate School of Banking, 37th Session, The State University, New Brunswick, N. J. June 6-19—Bank Marketing Institute School of Bank Marketing, Uni versity of Colorado, Boulder. June 7-18—Iowa Bankers Association Ag Credit School, Iowa State University, Ames. June 9-12 — NABW Lake - Midwest North Central Regional Confer ence, Statler Hilton, Detroit, June 10-12—Wyoming Bankers Associ ation 63rd Annual Convention, Jackson Lake Lodge, Moran. June 17-19—Montana Bankers Associ ation 68th Annual Convention, Jackson Lake Lodge, Moran, Wyo. June 23-25—Upper Midwest Agricul tural Credit Council (UMACC) 17th Annual Conference, East Glacier, Mont. July 11-13—Bank Administration In stitute, 3rd Annual National Con ference on Bank Security, Mar riott Motor Hotel, Chicago. July 17—AIB District X Leaders Con ference, Ramada Inn, Sioux Falla V^ July 18-23—Illinois Bankers Associa tion Ag Lending School. k September 2-3—Iowa Bankers Associa tion Installment Lending Confer ence, Hotel Savery, Des Moines. September 6-17—Illinois Bankers Association Bankers School, South ern Illinois University, Carbondale. September 15-16—Independent Bank ers of Minnesota 10th Annual Convention, St. Paul Hotel, St. Paul. September 22-25—ABA 45th Western R e g i o n a l Trust Conference, Brown Palace, Denver. -< t ^ September 26-29—ABA National Per sonnel Conference, Century Plaza Hotel, Los Angeles. September 26-30—Bank Marketing Instatute Annual Convention, Amer icana Hotel, New York. October 6-10 — NABW 49th Annual Convention, Fairmont-Roosevell Hotel, New Orleans. October 15-16—Association of Regis tered Bank Holding Companies Fall Meeting, Fairmont Hotel, San Francisco. V October 16-20—ABA 97th Annual Con vention, San Francisco. October 23-27—Robert Morris Associ ates 56th Annual Fall Conference, Los Angeles. October 24-27—Iowa Bankers Associa tion 85th Annual Convention, Hotel Fort Des Moines, Des Moines. October 25-27—ABA National Credit Card Conference, The Roosevelt Hotel, New Orleans. October 26-29—Independent Bankers Association of America, 4th An nual Seminar for Junior Bank Officers, Ball State University, Muncie, Ind. ♦ October 31-November 3 — Bank Mar keting Institute, Marketing and the Computer, Ambassador Hotel, Chicago. November 7-10 — BAI 47th Annual Convention, Hotel Fontainebleau, Miami Beach. November 7-12 — Nebraska Bankers Association Intermediate School of Banking, Lincoln. November 11-12—ABA 40th Midconti nent Trust Conference, The Stat ler Hilton, Dallas. November 14-16—ABA 20th National Ag Credit Conference, Hotel Muehlebach, Kansas City, Mo. -t. V At last. A guaranteed cash flow. 4 ...an assured income stream for commercial investors Commercial Loan Insurance Corpo ration insures the fixed rental income on a wide range of commercial prop erties including shopping centers, in dustrial parks, factories and ware houses against tenant default for up to 15 years. The guaranteed income stream makes it possible for mortgage lend ers to prudently consider a broader number of commercial clients and to offer more flexible terms to growing businesses. CLIC’s special policy endorsement allows the guaranteed rental to be di rectly assigned to the mortgage lender, thus assuring the payment of principal and interest on the loan for the life of the policy. You get maximum, long term protection. Lease guarantee insurance can help your lending institution build a more https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis profitable portfolio of mortgage loans. Now is the time to put this policy to work for you. Send for the company's lease guar antee brochure today. I Please send me the C LIC Lease Guarantee brochure without obligation. NAME_________________________________________ FIRM_____________________________________________ ADDRESS--------------------------------------------------------------------- CITY, STATE, ZIP--------------------------------------------------- I I \ CLIC, 606 Marine Plaza, Milwaukee, Wis. 53201 26 ItA t Northern Itegional Witt Feature ti Pane! Semionif HAT does a b an k er do w hen p ro fessional organizers a tte m p t to unionize his employees? A Chicago labor-relations counsel w ill give th e answ er to m ore th a n 600 ban k ers w h en th e y m eet in D etroit, May 9 to 11, for th e 22nd N o rth ern Regional C onvention of B ank A dm inis tra tio n In stitu te . P rogram details have ju s t been an nounced by R obert M. Surdam , p resi dent, N ational B ank of D etroit. The convention, to be h e ad q u artered at th e S tatler H ilton Hotel, w ill open Sunday, May 9, w ith reg istratio n , re view of educational exhibits and an evening reception. W T he form al program will open M on day, May 10, w ith Mr. Surdam presid ing. M ichigan L ie u ten a n t G overnor Jam es H. B rickley w ill w elcom e dele gates, and In stitu te P resid en t C harles A. Agem ian, ch airm an of th e board, G arden State N ational Bank, H acken sack, N. J., w ill respond. He w ill be followed by the keynote address, “M anaging D evelopm ent of H um an R esources,” by H a rry B. Cun ningham , ch airm an and chief execu tive officer, S. S. K resge Company, De Ross Bros. & M ontgom ery, New York, on “O perational A uditing”; Jo h n E. Jonas, m a n a g e r , C om puter A udit Group, F irs t N ational B ank System s, St. Paul, Minn., on “The A u d ito r’s Role in E D P System s D evelopm ent,” and B. Glen Jordon, president, State N ational Bank, E l Paso, on “M easur JL ing A udit P erform ance — A M anage m ent P rospective.” The accounting session, “U pdate on Taxes,” w ill h ear “In terest, Incom e and E x p en se” by R onald J. B arry, vice 4 president, F irs t N ational City Bank, New York; “Capitalization, E xpense, D epreciation” by Donald H. W ater m an, p artn er, Touche Ross & Com pany, D etroit, and “P o tp o u ri” by Charles D. W esselhoeft, vice p resi dent, H arris T ru st & Savings Bank, < Chicago. troit, and a special address by Jerom e B arnum , president, Jerom e B arnum Associates, W hite Plains, N. Y. The afternoon program will featu re co n cu rren t sessions on accounting, personnel and operations. The ac counting session, “M anagem ent Con tro l System s,” w ill h ear L a rry R. Chem berlin, senior vice president, M anufacturers N ational Bank, D etroit, on “W ork Standards — A Basis for M anpow er P lan n in g and R eduction”; G erard W. A tkins, m anager, Peat, M arwick, M itchell & Company, New York, on “D eveloping Cost of Bank Services,” and Jam es P. O’Neill, vice president, F irs t N ational B ank of Chi cago, on “P rofit P lan n in g in Sm aller R obert P robst, H erm an M iller Re B anks.” search C orporation, A nn A rbor, will The personnel session, “Developing address th e o p eratio n s/p erso n n el ses H um an R esources,” will h ear David sion, “E n v iro n m en tal M anagem ent,” Saw yer, director, E qual O pportunity on “Office E n v iro n m en t and th e H u Program , U. S. T reasu ry D epartm ent, m an P erfo rm er.” W illiam K arl, secu W ashington, D. C., on “E qual E m ploy rity officer, M arine M idland Bank, m en t O pportunities in B anking,” and New York, w ill follow w ith “E m e r David W. Ross, president, Ross Asso gency E vacuation P lan s,” and R obert ciates, Inc., N orw alk, Conn., on “B uild W. Feagles, senior vice president, F irs t N ational City Bank, New York, ing th e W ill to W ork.” L aw rence B etsenger, N o rth w estern w ill conclude w ith “D rugs and P erso n nel Policy.” B ancorporation, M inneapolis, w ill ad The convention will close w ith a dress th e operations session, “Develop m ents in Data H andling,” on “Rem ote general session in th e afternoon, to P rocessing—MICR T erm inals.” P aul be followed by an evening banquet. At th e afternoon session, Jo h n A. Mozola, vice president, F irst U nion A utom ation Services, St. Louis, will Sheridan, president, Jo h n A. Sheridan follow w ith “U pdate on COM/OCR in Associates, will explore the issue of B anking.” Virgil H. Disney, director unionizational attem p ts by profession of research, BAI H eadquarters, P ark al organizers w hen he discusses “La Ridge, 111., will conclude w ith “Data bor U nions and B anks.” T ransm ission.” The D etroit C hapter of B ank Ad Tuesday, May 11, will open w ith m inistratio n In stitu te, the w orld’s co n cu rren t sessions on audit, account largest technical association for banks, ing and o p erations/personnel. The is sponsoring the N o rth ern conven au d it session, “The E yes of M anage tion. C hapter p resid en t is L oren D. m en t,” w ill h ear Joseph W. Dodwell, Allston, vice presid en t and controller, co n su ltan t to the firm of Lybrand, City N ational Bank, D etroit. INVESTIGATE OUR NEW REDICASH HOSPITAL INCO M E PLAN $100-$150 or $200 PER WEEK GTD. RENEWABLE FOR INDIVIDUAL — MARRIED COUPLE — FAMILY WRITE AMERICAN B EN EF IT I N S U R A N C E CO. POU N DED 1905 2550 Pillsbury Ave. Mpls. 55404 N O A G E N T W IL L C A L L https://fraser.stlouisfed.org N o r t h w e s t e r n B a n k e r , A p r i l , 1971 Federal Reserve Bank of St. Louis Tel. 612— 823-7237 A c r o s s The S tr e e t O r A c r o s s The S e a We Are Where the Action is At an Iowa corrugated box plant, one of the printer-slotters wasn't inking properly. When a workman climbed up to find out why, he was pulled into the rollers. He suffered the loss of one foot and other serious injuries. Thanks to Em p lo y e rs M u tu a l W o rk m e n ’ s Compensation, he received full medical payments and now g e ts p e rm a n e n t d is a b ilit y compensation. In Nebraska, a high school boy was working on a farm during summer vacation. One day a co worker accidentally started a tractor which, driverless, struck the boy and paralyzed him. He will receive more than $100,000 for medical and rehabilitation expenses un der W orkm en’s Compensation with Employers Mutual. A woman in a Minnesota cloth ing store received payments every day from customers. But an audit revealed that only a part of the money was reach ing the bank. She was pocket ing the rest. Fortunately, the owner’s Employers Mutual Fi delity Bond paid an $18,500 loss. A resident of a deluxe apart ment house in the midwest went on a Florida vacation. While she was gone, a thief entered the apartment and stole jewelry valued at $23,235. An Employers Mutual policy covered the loss. After an Iowa construction worker severed his spinal cord in a fall, extensive medical and rehabilitation care was re quired. Employers Mutual al ready has paid more than $34,000 toward this care, and the man w ill get permanent total benefits under Employers Mu tual Workmen’s Compensation. Feelings were tense when the Israeli-owned "Aquarius” was rammed and set afire by a Russian freighter in the Arabian sea, but the real damage was financial. Repairs were about $10 million, including a long tow' to Japan. Employers Mutual shared the loss with other major writers of Marine Insurance. A service station attendant in Missouri got into a fis t fight with two customers who beat him so severely that he died without regaining conscious ne ss. B e c a u s e th e s ta tio n owner was covered by Work men’s Compensation with Em ployers Mutual, the widow re ceived $25,000. At night on a Kansas highway, a speeding motorist tried to pass in a no-passing zone. His car smashed head-on into an other, k illin g both its o c cupants. His car was unin sured. Fortunately, the inno cent driver had Employers M u tual U ninsured M o to ris t Coverage, so beneficiaries got full benefits. Employers Mutual Casualty Company Employers Modern Life Company Emcasco Insurance Company Oes Moines Union Mutual Insurance Company Providence https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B anker, A p ril, I9 7 Î 28 68 Banks join Foundation T he F o u n d atio n for F u ll Service B anks enrolled 68 new m em ber banks d uring th e m onth of Jan u ary , includ ing 38 new m em bers from Iowa, R ich ard B. Beal, F ound atio n executive vice president, announced. The F ou n d atio n conducts a $3 m il lion a y e a r n atio n al adv ertisin g and prom otion program to educate the pub lic about th e benefits of F u ll Service B anking. C u rren tly m ore th a n 6,200 banks in th e U nited States are F o u n dation m em bers. New m em bers enrolled d u rin g J a n u ary in the N orthwestern B anker area are: Colorado—W estern N ational Bank, Denver; The F irs t N ational Bank, H ol yoke. Illinois — F irs t A m erican B ank of A urora; F irs t B ank of M eadowview, Kankakee; B ank of N aperville, N ap er ville, F irs t N ational Bank. Iow a — A lbert City Savings Bank, A lbert City; State B ank of Allison, Allison; A ltoona State B ank, Altoona; A redale State Bank, Aredale; F a rm e rs Savings B ank, Boyden; Rubio Savings Bank, B righton; Iow a T ru st & Savings Bank, Centerville; C orw ith State B ank, Corwith; State B ank of Dum ont, Du mont; State B ank of E arlville, Earlville; E m erson State B ank, E m erson; F a rm e rsb u rg Savings Bank, Farm ersburg; F a rm ers Savings Bank, Frederika; George State Bank, George; F irs t S tate Bank, Greene; F arm ers Savings B ank, Irw in; F a rm e rs State B ank, K anaw ha; F arm ers & M erchants State B ank, Lake Mills; F arm ers State B ank, Lake View; Security Savings B ank, Larchw ood; M elbourne Savings Bank, M elbourne; M ondam in Savings Bank, M ondamin; Security State Bank, M ount Ayr; N evada N ational Bank, Nevada; F irs t N ational Bank, New H am pton; Oelwein S tate Bank, Oelwein; R andolph State Bank, Randolph; F irs t State Bank, Rockford; Lyon C ounty State Bank, Rock Rapids; St. A nsgar Citizens State Bank, St. Ansgar; Sheffield Savings Bank, Sheffield; Security State Bank, Shell Rock; The Security T ru st Savings Bank, S henan doah; S tory C ounty State Bank, Story City; Tam a State Bank, Tama; State B ank of V inton, Vinton; W alcott T ru st & Savings Bank, W alcott; W est Ches te r Savings Bank, W est Chester. M innesota — Citizens State Bank, W aterville. N orth D akota — D akota N ational B ank, Bism arck. First Chicago Ups Note Offering to $100 Million F irs t Chicago C orporation, p aren t com pany of T he F irs t N ational B ank of Chicago, filed M arch 15 w ith the Securities and E xchange Commission an am ended reg istratio n statem en t in creasing to $100 m illion its previously proposed public offering of $50 m illion notes due Ju ly 15, 1978, and dropping its previously proposed public offer ing of $100 m illion sinking fund de ben tu res due M arch 1, 1996. F irs t Chicago C hairm an Gaylord F reem an said the change in th e pro posed offering w as due to the change in m ark et conditions since th e original reg istratio n w as filed F e b ru a ry 16. The notes w ere offered later in M arch, p u r su an t to a negotiated public sale th ro u g h an u n d erw ritin g group jointly m anaged by Salomon B rothers and A. G. Becker & Company, Incorporated. The notes w ill n ot be callable p rior to m atu rity . A pplication w as m ade to list the notes on th e New Y ork Stock E x change. The n et proceeds from the proposed financing w ill be used p ri m arily in funding th e building pro gram of F irst Chicago B uilding Corpo ration, a subsidiary of th e bank, and the balance for general corporate p u r poses. F irs t Chicago C orporation is a oneb ank holding com pany w hich owns The F irs t N ational B ank of Chicago. C o n tin e n ta l W e ste rn is rig h t d o w n y o u r a lle y . . . Improve your average. Join our Fire-Casualty-Life pro team. CONTINENTAL WESTERN INSURANCE COMPANY 616 Tenth Street / Des Moines, Iowa 50308 / (515) 288-7471 HOME BUSINESS AUTO LIFE CONTINENTAL WESTERN LIFE INSURANCE COMPANY 3839 Merle Hay Road / Des Moines, Iowa 50310 / (515) 276-6767 DIVISIONS OF W ESTERN HOLDING CORPO RA TION Digitized for N orth w e sFRASER t e r n B a n k e r , A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis nr m . i l l V: i FIR S T IViRTlOINIRL BRIUK IN S T . L O U IS M I M i l » 1*0.1. C A n ear is m o re than so m e th in g to h e ar w ith . I t ’s so m e th in g to listen w ith , lis te n to p ro b le m s w ith . A n d questions. H ow good an a n s w e r is o fte n depends on how w e ll th e q u e stio n is u n de rsto o d . People w h o liste n b e tte r g ive b e tte r answ ers. People w h o liste n w ith m o re u n d e rsta n d in g . D ee p e r concern. W id e r e x p e rie n c e . First N a tio n a l People. Let them liste n to w h a te v e r p ro b le m you m ig h t have. A n y th in g fro m a d v e rtis in g to m a n a g e m e n t to w ire tra n s fe r. Cali (314) 421-2000. G iv e them an e a r fu l W e 've n e v e r th o u g h t w e w e re p e rfe c t. So w e 'v e n e v e r sto p p e d p e rfe c tin g . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 JF- j* À t e S ö g s |l l |p ||i l g jifS Il ' Ä 08 “ Ö «i,TOI» 1 ö S i i l l i i B iS v ü B illM H H a u m s h M *» « s ir? ; l i m fi *íf ^ t* ** Kl l ü m M I U f iii MEMBER F.O I.C. Picture your bank with a money m arket operation right in the middle of Wall Street. A correspondent relationship with Citibank puts your bank right where the action is— in the center of Wall Street, where our own money market operation is located. And all the expertise and facilities we use in our own operations can be yours. With our computerized Money Market Information Service you can be plugged directly into daily rate and yield information— any time. You also get the benefit of our constant participation in the foreign as well as the domestic markets. Citibank is equipped to handle your bank’s volume of traditional money N o r t h w e s t e r n B a n k e r , A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis t market instruments. And, if something new is needed, we’ve been known to come up with it. If you want to put these services— and more— to work foryour bank, talk to the men who can bring Wall Street to your street. Contact them through our Correspondent Bank Department, 399 Park Avenue, New York, N. Y. 10022. (212) 559-2411. FIRST NATIONAL CITY BANK 31 ■H * A N N U A L B O N D A N D IN V E S T M E N T O U T L O O K v<fv * “ Be R e a d y f o r D rastic C hange . . "We 1Vf#i V Home Again*" By W H E E L O C K W H IT N E Y P r e s id e n t I n v e s tm e n t B a n k e rs A ssociation o f A m e ric a C h ie f E x e c u tiv e Officer Ila in , K a lm a n & Q u a il, In c o r p o r a te d M in n eapolis , M in n esosta ■ THE AUTHOR, in his position as f President of the Investment Bank ers Association of America, ad dressed the organization's MidContinental District Conference on March 17. He reviewed some of the serious problems facing his in dustry and offered the comments in y the following article as his contri bution to "crystal ball gazing" ef fort to seek solutions and antici pate changes to come. F ANY of us here knew how th e issues of com petitive rates, in sti tutional m em bership, and th e cen tral m arket-place will finally tu r n out, we w ould know how the securities business w ill look five y ears from now. I can assure you th a t I don’t know the answ ers, th e IBA doesn’t, and no one I ’ve talk ed to or listened to does \ either. My prediction is th a t a m ore sophis ticated form of NASDAQ* w ill become th e new cen tral m arketplace. The th o u g h t is a little awesom e, because ^ th is concept w ould m ean th e end of the m ajor stock exchanges and th e re- I -> *National Association of Securities Dealers Automated Quotations. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis gional exchanges as we know them today. All stocks, all publicly traded secu rities, provided th ey m et certain m ini m um req uirem ents, w ould be traded on NASDAQ. New regulations w ould be needed—and, of course, all trades w ould have to be printed publicly. The specialist w ould shift from his post on the floor of the exchange to th e m ak ing of m ark ets in th is new centra] m arket-place. In stead of being assigned m arket-m aking responsibili ties for certain stocks by the exchange, th e specialist w ould be free to select w hich stocks he w anted to m ake a m ark et in. He w ould com pete w ith o th er m arket-m akers. In some cases, m any others. The o th er day I w an t to our tra d ing d ep artm en t at DKQ and asked for a look at our Level II NASDAQ m a chine; th a t’s th e one giving you a vis ual p ictu re of all the firms m aking a m ark et in a p articu lar security, to g eth er w ith th e bid and asked prices each m arket-m aker is quoting. I asked for an over-view of the m ark ets in A m erican E xpress, A nheuser-Busch, B ank of A m erica, and Combined in su r ance. It w as quite a revelation. L et me use A m erican E x p ress as an exam ple, although the others w ere sim ilar. At th a t p articu lar m om ent, th ere w ere 31 m arket-m akers in A m erican E xpress. L ater I added up the capital behind those p articu lar m arket-m ak ers. It tu rn ed out to be over $1,200,000,000! J u s t th in k of it! Thirty-one m arket-m akers w ith total capital of well of over $1 billion m aking a m ar ket in one stock. T h a t’s m y idea of a strong cen tral m arket-place. It can be argued th a t u n d er the p resen t system , at least we have a specialist on the job who has certain obligations and responsibilities to pro vide an orderly m arket. W ho w ould fill th a t vacuum ? My an sw er is th a t u n d er a new system such as I have described, the p rim ary responsibility for m arket-m aking w ould re st on the shoulders of th e com pany’s in v estm en t banker. U nder today’s practices, the in vest m ent banker, or m anaging u n d e rw rit er, assum es th e m arket-m aking func tion as an essential responsibility if the stock is traded OTC. W hen the com pany’s stock is listed, or becom es listed, he tu rn s this responsibility over to the floor specialist. If all stocks w ere to be traded on NASDAQ, th e in v e s t m e n t b a n k e r ’s m arket-m aking N orth w estern Banker, A p r i l , 1971 32 function w ould nev er end. T his m akes sense to me. It p u ts th e responsibility w here it belongs. If the in v estm en t b an k er doesn’t do a good job as a m a r ket-m aker, he ru n s th e risk of losing his client to an o th er in v estm en t b an k er w ho is doing it b etter. T his new com petitive th re a t w ould ten d to keep m anaging u n d e rw rite rs on th e ir toes. W hat I ’ve been describing h ere is a fundam en tal shift from an auction m ark et to a dealer m ark et. It w ould resu lt in a d ecentralization of th e m a r ket place because m ark ets w ould be m ade all over th e country. A t the sam e tim e it w ould stre n g th e n the concept of th e cen tral m arket-place, because all m arket-m akers w ould ap pear in one place, on th e NASDAQ m achine. U nder such a system , th e p resen t hassle over in stitu tio n al m em bership w ould disappear as th e re w ould be nothing m uch for an in stitu tio n to be long to. If they w anted to participate, th e y could becom e a m arket-m aker and com pete w ith o th er m arket-m ak ers. B ut this decision w ould be made on th e basis of diversification, ra th e r th a n as a w ay to reduce com m ission expense. I w ould assum e th a t large trades w ould be negotiated on a n et basis w ith th e m arket-m aker. Sm aller trades w ould be handled on a com m ission schedule posted by each firm doing business w ith the public. I t’s m y hope th a t you m en w ill th in k th is concept through. If th is prediction should m aterialize, one de velopm ent is certain. In v estm en t b an k ers w ill need m ore capital — at least m ost of us will. A lready at DKQ, ju st w ith the p resen t dem ands of NASDAQ, we are feeling the need for m ore capital. If all stocks w ere to be trad ed there, we w ould clearly w an t to expand our m arket-m aking capac ity—m ore stocks, bigger positions. And th is m eans m ore capital. So th a t’s w here m y crystal ball has tak en me. W here has your crystal ball tak en you? How m uch has your firm th o u g h t th ro u g h th e kind of re v olu tio n ary changes ahead? As I said earlier, no one has the answ ers, b u t it’s th e function of a trad e association such as the IB A to alert its m em bers in tim es of crisis and m eaningful change—to expose you to th e possibili ties—to help you prep are for w h atev er m ight lie ahead. L et me rep eat—one thing we see for sure is th e need for m ore capital. Be sure y o u ’re ready! Y our IBA is try in g h ard to ad ju st to the com ing revolution. W e feel the need for a stro n g er trad e association to do a b etter job of rep resen tin g our m em bers: before th e SEC, before Con gress, to the investing public, and to each other w ithin our in d u stry . W e are urg in g m em bers to be alert —we w an t to help them u n d erstan d the need for new techniques, to be ready for drastic change, to stren g th en th eir capital base, and above all, to stren g th en th e ir m anagem ent. You gentlem en are am ong th e m ost im p o rtan t leaders of our in d u stry . It is your responsibility. You can’t duck it—to see th a t your firm is prepared to m eet the future. T his is an ideal tim e to get ready. On behalf of the IBA, I urge you to m ake constructive use of this tim e. W e can ’t go hom e again.—End. ticipate some softening in tim e/savings in terest rates. Initial changes in these rates have already begun on the W est Coast w here savings passbook rates w ere reduced from 4M> to 4 per cent. Most banks are cu rren tly u nder dual pressu re on tim e/sav in g s accounts. F irst, the reduced rates available from short-term m ark et in v estm en ts are en couraging the in vestor to re tu rn to bank tim e deposits for a b e tte r yield. Secondly, w ith o u t a strong loan de m and, banks are increasing deposits w ith no com parable increase in loans. The low m argin betw een saving rates and loan rates m ay place m any banks in a profit squeeze. G enerally speaking, based on the outlook for th e 1971 economy, it ap pears th a t bank in v estm en t m anagers would do well to avoid long-term com m itm ents of new funds over the next six m onths. If th e stim ulus of an easier m oney policy does resu lt in a general economic recovery, the sh o rt er holdings w ill have th e capacity to provide needed liquidity for additional loan dem ands and any excess liquid ity w ill benefit from a generally high er yield scale. Balance, w hich pro vides flexibility, seem s to be the key to c u rre n t portfolio m anagem ent. Bal ance of m a tu rity and quality, w ith adequate l i q u i d i t y considerations, should provide a built-in hedge against unexpected, dram atic change in m ar k et yields.—End. M aturity — Quality — Liquidity Provide It nil i-in tie d ye for * W ritte n E sp e c ia lly fo r T h e N o r th w e s te r n B a n k e r B y DONALD G. WACHHOLZ A ssistant V ice P r e sid e n t B o n d D e p a r tm e n t First N ational B a n k M in n e a p o lis , M in n esota UR1NG th e last half of 1970 and into 1971, stro n g price im prove m ents w ere noted in th e U. S. G overn m ent and M unicipal securities. The prim ary question facing m ost portfolio m anagers is th e d u rab ility of these recen t price im provem ents. C u r r e n t fiscal and m o n etary pollicies and th e ef fect of these poli cies on the p er form ance of th e econom y in 1971 w ould indicate a g radual im prove m ent in short-term yields, w ith a rela tively stable, to lower, long-term yield p icture d u rin g 1971. B anks w ith a bal anced d istribution, containing some longer term high coupon issues, w ould do well to re ta in these holdings u n til D Digitized N o r t for h w eFRASER s t e r n B a n k e r , A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis th ere are m ore positive signs of an economic recovery a n d /o r a change in m onetary policy. A conservative ap proach to the in v estm en t of new m oney w ould be to concentrate on the short-term area, out to th ree years, as a hedge against the possibility of advancing yields along the entire yield curve. The effect of the easier m oney poli cies of the Fed and reduced dem and for credit has been a reduction in short-term m oney m ark et rates, and a split prim e rate of 5% and 514 per cent. M any forecasters anticipate som e fu rth e r reduction in the prim e before a gradual increase in loan rates can be expected. Most banks are experiencing im proved liquidity positions over th eir 1969-70 levels and have th e capacity to absorb a fair am ount of additional financing. At the c u rre n t level of loan and in v estm ent rates, we w ould an 33 Annual Bond and Investment Outlook Current tn n > s tn ie n t S i r a (rtf if W ritte n E spe c ially f o r T h e N o r th w e s te r n B a n k e r B y ALAN Ü. JOHNSON S e c o n d Vice P r e s id e n t C on tin e n tal Illinois N ational Bank & Trust Com pany C hicago , Illinois i T V ^ ► A ^ V , ». 1 ^ n r r r E A RE in th e m idst of the stro n g est bull m a rk e t for fixed ▼ ▼ incom e securities in recorded financial history. Yet it is n o t an alto gether h ap p y tim e for some bankers. The soft econom y com bined w ith a sh arp ly easier m on etary policy have ushered in a period of m uch low er in te re st rates th a n have been seen d u r ing the p ast few years. B an k ers w ith sh o rt asset stru c tu re s, i.e., m an y loan rep ay m en ts and secu rity m atu rities, w ill be u n d e r earn in g s p ressu re during 1971. In addition, th e to rre n t of tim e m oney com ing into th e ban k in g sys tem is creatin g problem s in term s of earn in g a decent spread. B ut how long w ill in te re st ra te s stay in th is range? Indeed, will th ey go lower? H igher? A nd w h a t of inflation? A ny in te re st ra te outlook m u st be based on broad economic expectations, to gether w ith an opinion as to th e probable course of fiscal and m on etary policy. A nd at th is tim e we m u st con sider an alm ost o verriding factor, th e 1972 elections. R ight now th e en v iro n m ent is quite favorable to fixed income securities. The econom y is slug gish. B usiness spending has receded https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and financing plans are centered aro u n d funding sh o rt liabilities. The consum er is quite conservative, spend ing cautiously w hile placing record am ounts in fixed incom e securities and tim e and savings accounts at financial in stitu tio n s. Fiscal policy and m onetary policy are expansionary. How ever, m ost observers feel the bottom of the economic dow ntow n is near, if n ot al read y past. Some economic th ru s t this year w ill be provided by housing and a loosening of th e consum er’s pu rse strings, w ith fu rth e r stim ulus provided by fiscal policy. N evertheless, the up tu rn w ill be mild, no runaw ay. The econom y w ill continue to pick up steam as th e year progresses, b u t the n et effect in 1971 w ill be m odest. Those observers looking for a GNP near $1,065 billion m ay be disappointed u n less th e consum er begins to spend u n usu ally large am ounts. H istory tells us th a t such a sh arp tu rn aro u n d in consum er attitu d es it highly probable. Higher Rates by Year-End As for in te re st rates, the probabili ties are for slightly higher rates by year-end th a n those a t p re se n t (mid- M arch). In fact, we m ight be near the lows in th e m oney m arket, al though th ere appears to be some room for still low er rates in th e interm edi ate and longer m a tu rity ranges. In all probability we w ill be in a relatively easy m onetary atm osphere for m ost of this year. The A dm inistration w ill continue attem p tin g to reduce long term in te re st rates, b u t the seem ingly bottom less p it of financing dem and stem m ing from corporations, states and m unicipalities and, indeed, the T reasury, should hold interm ediate and long rates at relatively high lev els. In short, w e expect th a t for the nex t few m onths m oney m ark et rates w ill rem ain in th eir p resen t range and in term ediate and longer rates w ill drop a bit fu rth er. Both sh o rt and long in te r est rates should begin an upw ard course at some point, probably p ast mid-year, in the face of economic im provem ent, stro n g dem ands for bond m ark et credit and resum ed corporate borrow ing at banks. H ow ever, the up w ard m ovem ent in rates should be m odest due p rim arily to tw o factors, th e mild pace of th e economic u p tu rn and the continued easy m o n etary pol icy. F u rth e r ahead, p articu larly if we do not get a sh arp sh ift in consum er confidence, we should expect a contin uation of stim ulative m o netary and fiscal policies du rin g 1972, an election year, and a re tu rn to h igher in terest rates and renew ed inflationary p res sures in 1973. In this environm ent, portfolio pol icy should be altered considerably from th a t of last fall. R ath er th a n looking a t m ajor extension program s, tax loss sw apping, financing tig h t m oney positions, etc., we m u st now consider topics such as too m uch liq uidity, tak in g profits, im proving m u nicipal portfolio quality, providing coupon protection, and p articu larly g u arding against th e “earn in g tra p ”— extending a t th e w rong tim e in the in te re st of sh o rt ru n earnings. High Coupons Maturing D uring the p ast few y ears bankers have been able to enjoy u n usually high yields in sh o rt and in term ediate term G overnm ent notes. The m a tu rity stru c tu re of any quote sheet show s v ery high coupons every few m onths th ro u g h 1973. The passage of tim e has pulled these notes closer to m a tu rity , and th e p resen t and prospec tive m ark et m akes these m atu rities ideal candidates for profit-taking. E ven though banks m ust now pay a 48 per cent tax on all security profits instead of th e old long-term capital gains rate of 25 p er cent, these profits still go Northwestern Banker, April, 1971 34 Annual Bond and Investment Outlook a long w ay tow ard m oderating bank earnings p ressu res in th e short run. R ight now, w ith such a sh arp posi tive yield curve, 1971 and 1972 m a tu ri ties are a ttra c tiv e sales for slight ex tension, p a rtic u la rly for those holding to a m odest in te re st ra te outlook th rough m ost of 1972. F o r exam ple, the 7 ^ ’s of N ovem ber, 1971, can be sold at about th re e points prem ium , or a “giveup y ield ” of about 3.12 per cent. R einvestm ent of these funds in the 5%’s of A ugust, 1974, at a yield of about 4.55 p er cent provides a good deal of flexibility. In effect, this trad e enables th e in v esto r to earn roughly 140 basis points m ore th a n his giveup yield each day he holds th e 5% ’s, w hich is beneficial from tw o sta n d points. F irst, it protects incom e at to d ay’s level in th e event the economy continues w eak th ro u g h o u t the year and into 1972. Second, it builds addi tional incom e (and tim e) as dow nside protection in th e event th a t stro n g er economic activ ity la te r th is year causes the investo r to rev erse his position and pull in his m atu rities. L ater th is year, if th e yield curve gets a b it flatter, it w ill be tim ely to consider tak in g profits on 1972 and p erhaps .1973 m atu rities, rein v estin g in th e Bill m ark et at realistic yield sim ilarities, and aw aiting h ig h er in te rm e diate yields for rein v estm en t. An ad ditional relev an t m ove to consider in a relativ ely flat yield curve involves liquidating low coupon, low yielding in term ed iate G overnm ent securities at some point before ra te s tu rn up, re investing in sh o rte r m atu rities for m ore flexibility. C aution is suggested w hen considering profit-taking on wellbought 1974 and longer m atu rities, how ever. U nless you extend m ark ed ly or go sh o rt expecting a v ery sh arp rise in in term ed iate and longer rates, you will be penalizing fu tu re incom e for p resen t income. Note of Caution One final com m ent on G overnm ent securities involves th e May and A u gust refundings. N o tw ith stan d in g th e desires of th e A dm inistration for low er interm ed iate and long in te re st rates, or the in tern a tio n a l p ressu res resu ltin g from th e low level of m oney m ark et rates, th e T reasu ry is expected to try some debt extension at both refu n d ings. H ow ever, caution should be the order of th e day before com m itting m edium term funds a t th a t ju n ctu re. R ath er th an being lured into an ex N o r t h w e s t e r n B a n ke r, A p r il, 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trom i H IS article expresses m y individ ual opinions and some w ell in form ed people even in m y own bank are not in com plete agreem ent w ith m y ideas. In p articular, th ere are some w ho feel th a t an u p tu rn in in te r est r a t e s will come sooner and will be sh arp er th a n I anticipate. A lthough t h e m ajority is often w rong, I find m y self in basic agree m ent w ith m any of th e “stan d ard f o r e c a s t s . ” We seem to be at or slightly p ast the bottom of th e economic cycle and business should im prove du rin g the m onths ahead. H ow ever, unless con su m er spending increases m ore than can reasonably be expected, a GNP of about $1,050 billion is m ore likely T tension program in th e in terest of hig h er yields, it m ight be wise to con sider eith er the 18-month to two-year anchor issue, if one is offered at real istic rates, or th e Bill m ark et to aw ait events in th e fall. ties, p re se n t yield spreads are not v ery a ttra ctiv e in m a tu rity areas th ro u g h 1975. N or do spreads in this area look to get b e tte r in the im m e diate fu tu re, due p rim arily to supply problem s. E arly in the year m ost ob serv ers w ere operating u n d er the as sum ption th a t th ere w ould be a m arked increase in th e supply of Agencies d uring 1971, p articu larly in those Agencies closely associated w ith th e housing industry. H ow ever, the softness in th e econom y and th e in crease in available m ortgage funds in th e open m ark et have in fact caused those Agencies, p rim arily the Federal Hom e Loan B ank and F annie Mae, to reduce th e ir to tal outstandings to date. U nless th ere is considerable prom pt stim ulation in housing, and a reversal of th e p re sen t in te re st rate trend, cu r re n t probabilities call for only a mod est expansion in Agency financing on the year. F u rth erm o re, the F ederal Home Loan B anks and F an n ie Mae, in order to gird up for fu tu re financing dem ands, are re stru c tu rin g th e ir exist ing debt. R ath er th an finance in the to iA W ritte n E sp e c ia lly f o r T he N o r th w e s te r n B a n k e r B y C. RONALD FAIRS S e n io r Vice P r e s id e n t LaSalle N ation al B ank C hicago, Illinois th an th e A d m in istratio n ’s forecast of $1,065 billion. The ra te of business expansion w ill probably be m oderate and w ill be slowed in the th ird q u a rte r by a steel strik e or, if a strik e does not develop, by the need for using accum ulated steel inventories. Serious inflation w ill rem ain a background th re a t but, in m y opinion, w ill not be a problem sufficiently severe in 1971 to force the F ederal R eserve to reverse its expan sionary m onetary policy. The balance of paym ents problem , on th e other hand, m ay become m ore acute and m ake the au th o rities relu ctan t to let short-term rates go m uch lower. It is likely th a t th e goal w ill continue to sh o rt area, th ey are issuing m ore se curities in the area betw een five and 15 years. As a result, Agency financing in the sh o rt area should drop sharply, and th e p resen t u n attra c tiv e yield s p r e a d v ersus G overnm ents should rem ain. In fact, if realistic bid prices (n arro w spreads) become m ore of a reality, sh o rt Agencies could be good vehicles for m odest extension sw itches into direct G overnm ents, w ith little giveup in yield and a little m ore m ark et flexibility. A Look at Municipals In the m unicipal m arket, th e bond b u y e r’s 20-bond yield index has dropped from a 1969-70 peak of 7.12 per cent to 5.28 per cent in mid-March. But, because this index reflects activ ity in the 20-year m a tu rity range, it belies the alm ost aw esom e m ark et im provem ent in sh o rte r m atu rities, th e two- to 15-year range, for instance, w here banks are th e pred o m in an t m ar k et force. A nd th is m ark et im provem ent has been made in spite of record financing by state and local govern m ents. T his record level of state and local credit dem and is expected to continue, if not increase, H ow ever, banks, the m ajor recipients of reliquiIX VESTMENT STRATEGY . . . (T urn to page 40, please) * *- i ^ w + . ^ T‘ -f * / * - f * 35 U nies .Y o / Over be expansion of th e m oney supply at -4 around at 5 to 6 p er cent rate, in order to bolster th e econom y and help reduce unem ploym ent. Lower Trend Not Over A lthough th e m ajor portion of th e decline in in te re st ra te s is behind us, 4 I do not believe th e tre n d tow ard low er rates is over yet. In particular, long-term rates seem likely to decline from p re se n t levels, since th e p resen t * spread betw een long and sh o rt rates is un u su ally large. T herefore, I expect short-term ra te s to rem ain low w hile interm ed iate and long-term rates de cline fu rth e r d u rin g th e n ex t six m onths. In the fo u rth q u a rte r of 1971 a gradual u p tre n d in rates m ight bev gin. In m y opinion, how ever, rates, though p erh ap s risin g slowly, w ill still * be very low at th e end of th e year „ com pared w ith those seen in th e p ast 18 m onths. If these p redictions prove correct, we as b ankers face some difficult choices and perhaps an earnings squeeze later in th e year. Our sav ings accounts w ill a ttra c t investors as well as savers, and it will be increas ingly difficult to find a place to p u t th e funds at a profit. W ith recent ex perience fresh in our m em ory, we should be p articu larly careful n ot to fall into the old tra p of investing w hat m ay prove to be short-term funds in long-term m atu rities in a period of low rates. Watch Liquidity W ith low rates expected for th e bal ance of th is year, 1971 m atu rities should be confined to th e am ount needed for probable liquidity req u ire m ents. N ineteen seventy-tw o through 1974 m atu rities seem th e m ost logical in v estm ent range except for bonds ac quired strictly for trad in g purposes. M unicipal bonds of m oderate m atu rity continue to be relativ ely attractive. I t »in mend Shorter M aturities Tr N ORDER to p roject w here w e are I.going in the m oney m ark et, it w ould y j help to p u t th in g s in p ro p er perspec tive by review ing w here w e have been. Since th e n ear all-tim e high in in terest rates in early 1970, w e have experienced th e stro n g est bond m a r k et advance in th e post-w ar period. Com m ercial pap er ra te s have dropped 400 basis points since mid-1970. At th e sam e tim e th re e - month T re a su ry b i 11 s dropped 300 basis points. W e don’t have to look far to find the pauses for this trem endous dow n w ard change in R. J. WISSLER rates. I t began w ith th e extrem ely tig h t fiscal and m onetary policy of 1969 and 1970 w hich resu lted in an extrem e credit crisis. C onsum ers reduced th e ir spending and increased th e ir saving because of the fear of unem ploym ent and reces- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W r itte n E sp e c ia lly f o r T h e N o rth w e ste rn B a n k e r B y ROBERT J. WISSLER V ice P r e s id e n t lowa-D es M oines N ational B ank Des M o in e s , Iowa sion. The re su lt w as a m assive in flow of savings to institutions. In the m idst of this sh ift of savings the F ed eral R eserve moved to a policy of cred it expansion. The n et end w as a m oney m a rk e t w here supply heavily outw eighed dem and. This w as no m ore evident than in the decline of m unici pal bond yields of n early 150 basis points since mid-1970 due m ainly to th e accrual of su rp lu s funds by the p rim ary m unicipal bond investor, th e com m ercial bank. W h at does th e Im m ediate fu tu re hold? C ounter-pressures are now ap p earin g th a t w ould seem to preclude fu rth e r m ajor in te re st rate declines despite the prim e rate reduction of M arch 11 and a possible cut in reserve Annual Bond and Investment Outlook B anks in the u p p er tax b racket should continue to replace m unicipal m a tu ri ties and provide for a norm al expan sion of the m unicipal portfolio. Our b a n k ’s com ptroller w arn s me, how ever, th a t a sh arp increase in m unici pals w hich can be directly tied to a corresponding increase in tim e depos its will probably be scrutinized closely by th e IRS and should be avoided. In conclusion, unless th ere is a re duction in savings rates, I believe it will be v irtu ally im possible to m ake sound bond investm ents w ith new tim e m oney w hich will show a profit. The profit potential of new tim e depos its can only be dem onstrated by an a lyzing them in th e light of the over all asset mix. Over th e n ex t few m onths, an attem p t to tie dollars of new high rate tim e and savings m oney to an equivalent n um ber of dollars in vested in the bond portfolio and come out w ith a profit will alm ost inevitably lead to in vestm ent decisions w hich will prove unsound over th e longer term .—End. requirem ents. Some of these pressures are: a strong possibility of increased bank loan dem and, a larg er Federal deficit th a n anticipated, forecasts of g reater borrow ing by F ederal agencies and the im probability of an y shrinkage in th e volum e of new m unicipal debt. If, in fact, the econom y expands as rapidly as the A dm inistration predicts, it is v ery likely short-term in terest rates w ill begin to rise late r th is year, p articu larly in m unicipals. W ith th is in m ind it w ould be m y recom m endation th a t a significant sh o rten in g of m atu rities should take place in bond portfolios in th e near fu ture. Looking at th e total re tu rn picture, I feel th a t the low er c u rre n t re tu rn received from shortened m a tu ritie s w ould be offset possibly w ith in a year or tw o on th e rein v estm en t of such securities. A t th is tim e new m unicipal bond portfolio purchases and m unicipal bond runoff rein v est m ents should be concentrated in the sh o rt and in term ediate m aturities. T im e/savings in te re st expense can be covered, including th e cost of in su r ance and reserves, w ith tax-exem pts w ith m atu rities v ary in g from four to nine years. Of course, th is plan m ust be tailored to th e in v estm en t objec tives of individual portfolios.—E nd, N o r t h w e s t e r n B a n k e r, A p r i l , 1971 36 A Annual Bond and Investment Outlook *■ Troasary Tax a a d Loan A v ro a at Subsrriptioas. #V o 111a h il il #/ N 1970, BANKS m ade additional profits by tak in g advantage of U. S. G overnm ent su b scriptions w ith tax and loan account credit. This is nothing new as the system has been in operation since the days of W orld W ar I. H ow ever, it has been of m a jo r significance to th e b an k in g in d u stry only in r e cent years. One of the p ri m ary purposes for th e establishm ent of th e tax and loan account sys tem w as to p ro vide an incentive for b anks to serve as d istrib u to rs of I W r itte n E sp e c ia lly f o r T h e N o r th w e s te r n H anker B y ROBERT J. PEROUTKA I n v e s tm e n t Officer First N ational B an k o f Si. P au l T reasu ry securities. The T reasury cannot m a rk et its securities through u n d e rw rite rs in the sense th a t the se curities of corporations and m unicipal ities are m arketed th ro u g h u n d e rw rit ers because of the size and n atu re of its b orrow ing operations. Nor does it pay direct com m issions for the d istri butio n of its securities as m any other issuers do. Allow ing paym ent w ith credit to tax and loan accounts resu lts in the banks serving as u n d erw riters for the d istribution of th e securities, y This is all accom plished w ith a m ini m um of disturbance and im pact on m ark et rates. P aym ent for securities by credit to treasu ry ta x and loan accounts pro vides an elem ent of potential profit for a bank to the e x ten t th a t it can em ploy the funds usefully u n til th ey are called out by the T reasury. The profit potential justifies a bank to pay a p re m ium for the securities based on the ¥ estim ated life of the tre a su ry tax and loan deposit. In o ther w ords, the banks have the use of the funds, at a low cost for a few days. T & L ACCOUNT . . . (T urn to page 42, jilease) .M echanics. O u tlo o k o f a T / L A cco u n t A S IM P L IF IE D exam ple illu stra tin g th e m echanics and outcom e of a ta x and loan account offering fol- lows: A.) Subscribe for $100,000 T ax A n ticipation B ills due 6-22-71. The average price paid for these bills on th e auction w as 95.954, w ith a pay m en t date of 10-21-70. On 11-10-70, th e T re a su ry called 80 per cent of th e balance. Based on this, th e n u m ber of days th e funds w ere in th e account w as approxi m ately 25. The value of the tax and loan account credit is affected by th e follow ing factors: R equired R eserves 12%% Life of TT & L C redit 25 days M oney w orth (Fed. F u n d s) 6% 1.) A ssum ing th e bills w ere sold at m a rk e t on 1110-70 to m eet th e 80% call: Proceeds from sale ........................ $96,439.00 O riginal Cost jffus cost of R equired R eserves .................... 96,004.00 P rofit ........................................$ 435.00 2.) A ssum ing all th e bills w ere sold at m a rk et on th e issue date (10-21-70): Cost .................................................... $95,954.00 Proceeds from sale ........................ 95,828.00 Loss ........................................ $ Digitized N o r t hfor w eFRASER s t e r n B a n k e r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 126.00 Proceeds from sale ........................ $95,828.00 Less: 12%% R equired R e se rv e s.. 11,994.00 Investable F u n d s ................ $83,834.00 Recap: Investable F u n d s ............................ $83,834.00 Loss from sale .................................. 126,00 Cost of M oney 25 days (A n n u a liz e d ).................. 2.16% In exam ple No. 1, we see th a t th e bank had a profit of $435 w ith no expenditure on th e ir p a rt except for the cost of reserves on the tax and loan deposit. In exam ple No. 2, the illu stratio n points out th e advan tages for a b ank th a t is in a borrow ing position or has an altern ativ e use for the funds. In stead of holding the bills for 20 days, th ey w ere sold as of the issue date so th a t th e b ank had $83,834 of new reserves to invest. The exam ple show s th a t th ey paid 2.16 p er cent for use of the funds w hen in effect Fed F u n d s w ere trad in g at the 6.00 per cent level. In sum m ary, th e program can m ean additional profits for those banks w illing to take the tim e and risk s in volved. The year 1970 w as especially attractive, jorimarily because we w ere in a period of increasing prices in the G overnm ent securities m arket, w hich autom atically created profits. In a declining m ark et additional caution should be exercised because of possible m ark et losses. In eith er case, it w ould pay to consult w ith a com petent advisor. V -5 > V 37 M o n e a C e n te r H a n k n n d Mt9s Outlook fo r H IT I W r itte n E sp e c ia lly f o r T h e N o rth w e ste rn B a n k e r B y RICHARD C BELLINGER S e n io r Vice P r e s id e n t F ranklin N ation al B a n k N ew Y o r k . N. Y. r IT H the spectre of num ero u s liqquidity crises endured in th e p ast W two y ears still v ery fresh in our f m inds, th e avoidance of costly m is takes in in v estm en t ju d g m en t is again ' the p aram o u n t concern of b ank in v est m ent officers. T his caution has proved to be quite evident as the debt secu_ rity m a rk e ts have begun to recover some of th e ir equilibrium from the V d ark days of 1969 and 1970. All of us have k e p t our ears to th e ground lisf ten in g for every v ital economic s ta tis tic to re a ssu re ourselves th a t th e * bonds we have ju s t p u rchased w ere > not a folly and th e c u rre n t rally is not m erely a technical one. v The re c u rre n t see-saw ing of bond yields to th e ir p re se n t levels indicates 1 th a t in v estm en t officers w ere stepping out w ith one foot w hile th e re a r foot w as set for a quick retreat. The u n d er two-year m a tu rity yields w ere driven dow n un m ercifu lly w ith th e first inA flows of cash. M unicipal bonds su d denly cam e into favor, as w eek by < w eek w ith th e increasing p ressu re of uncom m itted funds aw aiting invest4 m ent, m any b an k s re lu c ta n tly ex tended th e ir purch ases out to th e 10year area in ord er to salvage yields , hopefully som ew hat com parable to previous loan rates. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Again, banks are being forced to reach out for yields, and wffiat a ssu r ance has th e in v estm en t officer th a t w h a t looks like a low yield so soon after these recen t liquidity debacles, m ight be unbelievably attractiv e six m onths from now? Or has he, again, becom e trapped? He is v ery m uch aw are th a t if th e business clim ate im proves, b anks m ay all be looking to sell th e ir bonds invested out to 10 y ears a t once, d riv in g prices dow n so fast th a t he m ay again have sizable losses in his “sh o rt-term ” bonds. Hope to Avoid Pitfalls W e w ould hope to avoid these ob vious pitfalls, by relying on the eco nom ic forecasts of our own bank econ om ists. H appily, we find th a t th e ir predictions do not alw ays agree w ith th e m ajority, and the value of th is di vergence has proven to be a portfolio quick to react ahead of m any others, and a perform ance m any tim es b etter th a n m a rk et indices. P re se n tly we are looking for m oder ate economic grow th in 1971, accom panied by expansive fiscal and m one ta ry policies. As a result, short-term rates are expected to hover w ithin a n arro w trad in g range over m ost of the year. H ow ever, long-term rates are expected to fall to low er levels over the n ex t six m onths. Specifically, the tax-exem pt m unici pal m ark et looks good because banks are not likely to experience v ery large loan dem ands over m ost of this year w hile the F ederal R eserve continues to pursue an expansive m onetary pol icy. The high yields in the 15- to 20year range for m unicipals m akes this area p a rticu larly attractiv e for price appreciation. But, these favorable trad in g condi tions m ay only last about an o th er six m onths or so. By the end of th e year, loan dem and is expected to im prove, m onetary policy is likely to become som ew hat m ore restrictiv e and the in flation problem could becom e m ore difficult to control. If such economic and financial conditions w ere to m ate rialize, long-term rates could very w ell head up once again. Our Basic Approach As a large m oney center bank, our basic approach a t presen t is to in vest all funds required for im m ediate liq uidity in short-term governm ents out to th ree years or less. T his total m ay be slightly h igher th a n desired be cause of public deposit collateral re quirem ents. Excess funds form erly required for loans are now being in vested in local tax free notes w ith m atu rities out to nine m onths. A por tion of these funds are allocated to the higher yielding New York City BAN and RAN’s. No additions or new com m itm ents are being m ade in “B ank ran g e” m unicipal bonds at this tim e. We are not enlarging our longerterm com m itm ents at the presen t tim e. We are building liquidity for expected fu tu re loan dem and, although we trad e our liquidity position actively. W e take m odest trad in g positions in corpo rates as w ell as m unicipals and agen cies to supplem ent yield w ith sh o rt term profits w h ere possible. It is hoped th a t if th e debt m ark ets con tinue to im prove in the n ear term , as we expect, security profits m ay be real ized on these securities as th e long term area of the debt m ark ets catches up w ith the norm al in te re st curve. Tim ing of sales w hen the outlook changes, of course, w ill be of utm ost im portance and w ill be v ery delicate. Any inv estm en t plan involves a p re sum ption of the business outlook w hich m ay v ary from m onth to m onth. M oreover, one b a n k ’s plan m ay not suit th e req u irem en ts of any other bank. D ifferent p aths are necessary as bank deposit m ix and loan req u ire m ents differ. The b ank in v estm en t officer tread s across th e m a rk e t’s th in ice try in g to reach the security of the other side guided by his ow good judg m ent. Not an easy task!—End. N o r t h w e s t e r n B a n ke r, A p r i l , 1971 38 Annual Bond and Invrstnirnl Outlook Investors and Traders W a it to r "tiiunt* E T ’S begin w ith th e old and over w orked cliché—th is is a diffi cult tim e to be forecasting devel opm ents in th e m oney m a rk e t and the bond m ark et. T his is not a new p ro b lem because try in g to read th e fu tu re is alw ays difficult, p articu larly w hen one attem p ts to do th is w ith precision. P eering into th e fu tu re ju s t seem s to have been m ade m ore difficult th is year by th e extrem es th a t c h aracter ized the m ark ets of 1970 and late 1969. In te re st rates now look quite low in relation to last year, p articu larly rates for short-term in stru m en ts. Long term. rate s are still histo rically high. T he re su lt is a steeply sloping yield curve. M any of th e ab n orm alities of th e m ark ets of 1969 and 1970 have been w ru n g out of th e stru c tu re of prices and rates. I refer to th e liquidity crunch, tig h t m oney, high in te re st rates, and disinterm ediation. Yet, the sh arp slope in th e yield curve suggests th a t n ot all financial and economic problem s have been elim inated. In deed, th e ex tra o rd in a ry decline in short-term in te re st ra te s and th e re luctance of long-term rates to decline nearly as m uch, suggests th a t th e con fidence factor has n o t been com pletely restored. The level of short-term rates reflects in large m easure a continuing preference for liquidity (at a sizeable prem ium ), and th e considerably high er longer term ra te s reflect lingering doubts in some q u a rte rs over th e n a tio n ’s success in dealing w ith inflation. L Uncertain Environm ent A gainst th e above background, and allow ing for th e political realities th a t one w ay or an o th er im pact financial m ark ets (if only tem p o rarily and suDigitized N o r t hfor w eFRASER s i e r n B a n ke r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “ to tin fold W ritten E specially f o r T h e N o r th w e s te r n H anker B y JOHN J. LARKIN S e n io r Vice P r e s id e n t F irst N a tion al C ity Hank N ew Y o r k , N. Y. perficially), th e developing m oney m ar k et en v iro nm ent over the n ex t six m onths could be m ost uncertain, to say th e least. (Indeed, some economic theories in sist on a leew ay of six m onths in th e lag factor in th e ir pro je c tio n s — if th e projections do n o t w ork out then the six m onths is w rit ten off as a lag.) A n u n certain m a rk e t could be tran slated into an in terest ra te stru c tu re w ith fits and starts. In o th er w ords, in te re st rates could be fluctuating in a m oderate range. Call th is a trad in g m ark et if you w ish, b u t a b e tte r identification m ight be a w aitin g m a rk et as investors and tra d ers hold back to see the n ational eco nom ic and financial “gam e p la n ” u n fold. D uring th is period of fluctuating rates, th e odds favor a tre n d line th a t w ill slope upw ard. A t this ju n ctu re, it is difficult to foresee a sh arp u p w ard a d ju stm en t and certain ly not one th a t approaches last y e a r’s peak ra te levels, On the o ther hand, if the consum er is slow in his response to th e call for spending ra th e r th a n saving (and th a t is not clear at all y et), th e upw ard ad ju stm en t of in te re st rates m ight be m uch slow er in em erging, even in a fluctuating m arket. Indeed, the presen t in terest ra te levels could be sustained for several m onths and it w ould not be too difficult to suggest the rate de cline from late 1969 or early 1970 (de pending on w h eth er one is looking at short- or long-term rates) could be ex tended. A ny such extension w ould m ore th a n likely occur in interm ediate and long-term rates. Short-term rates could be sticky on the dow n side in such a situation. Rising Interest Rates My choice is th a t the consum er w ill spend m ore and save less, and, th e re fore, th e odds favor rising, ra th e r th an falling in te re st rates over the n ex t six m onths. T herefore, the wise m anagem ent of b ank assets w ould call for avoidance of com m itm ents in long-term securities, even th ough the prevailing steep yield curve encourages ju st the opposite course of action for incom e purposes. The yield curve is saying th ere m ay be b e tte r opportuni ties ahead for extending a bond ac count. This is n ot intended to suggest an extrem ely sh o rt position. A n all or none bet is not ap p ro p riate in to day’s fluid in v estm en t environm ent. Selective acquisition of in term ed iate m atu rities w ould n ot be out of order b u t w ould have to be considered against the loan experience of the in dividual bank. The in term ediate sec tor, ra th e r th a n long-term , should be GAME PLAN . . . (T u rn to page 42, please) 39 * -4 One coat covers 4 * Until now, yo u ’ve know n our RedCoats as North Central Lite’s tield men. Let’s expand on that. Think of the red coat as a total protective coating. Because we cover the areas where you really need help. L a rg e lo a n s. E ld e rly borrow ers. Joint Life. Toll-free telephone underwriting. G roup m ortgage. Depositor Life, and m uch more. After all, from the leader in covering lending institutions, you expect extraordinary products. Watch for us. North Central Life 275 E. Fourth Street St. Paul, Minn. 55101 N o r t h w e s t e r n B a n k e r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40 Annual Bond and Investment Outlook H ank E a r n in y s a m i tin* In r est num i E nn e l ion W r itte n E spe c ially f o r T h e N o r th w e s te r n B a n k e r By FRANK K. SPINNER S e n io r Vice P r e sid e n t First N ation al B an k in St. L ouis OST aconom ists p redict a h ealth y M expansion of our national econ omy, followed by increasing in te re st rates. The big question is—w hen? W e have ju s t w itnessed one of the g reatest declines in sh o rt and in term e diate in te re st rates in th e h isto ry of our country. Not unexpectedly, th is has placed b ank earnings u n der a g reat deal of pressure. The q u e s t i o n is w h eth er b ankers, as th ey have done in th e past, will F. K. S P I N N E R begin to reach out for in vestm en t yields only to find In te re st rates w ill assuredly rise. X. H ow ever, in m y opinion, this w ill not occur u n til the fo u rth q u a rte r of 1971 and possibly not u n til 1972. The econ om y’s h ealth w ill depend alm ost en tirely on how the housing in d u stry fares. If housing is to flourish, long term rates m u st decline and stay down. O therw ise, housing and con stru ctio n expansion w ill be aborted in an early stage. Today we are looking at the g reatest exam ple of “O peration T w ist” ever provided by the F ed eral R eserve Sys tem. The F ed ’s objective is to fu rth e r re duce interm ediate and long-term rates w hile keeping short-term rates at to day’s levels or slightly higher. Thus, the b an k er w ho rem ains sh o rt can look for sh o rt rates to re m ain at the 3% per cent to 4 per cent level — and this includes F ederal F unds. The b an k er w ho lengthens his portfolio b u t stays w ithin the three-year range should fare very well. B ut the b an k er w ho lengthens beyond th ree y ears w ill have to be nim ble. In other w ords, he m u st sell out before in terest rates increase— or in the early stages of rising rates. If he doesn’t, his 1791 earnings will benefit to the d etrim en t of earnings in V subsequent years. W ith the change in th e tax law, banks can no longer afford th e lu x u ry of in cu rrin g capital losses on th e ir in vestm en t portfolios. In th e future, b ankers are going to have to do a m uch m ore efficient job of m anaging th eir investm ents. B ank’s earnings w ill reflect the am ount of \ time, expertise and effort b ank m an agers devoted to th e in v estm en t func tion.—End. them selves locked into low yielding securities? In other w ords, is h isto ry about to be repeated still another tim e? The answ er to this question de pends on w h at in te re st rates do. I say th is because I am sure th a t m any b an k ers will lengthen th eir in vestm ent portfolios in an effort to sustain a fa vorable ra te of earnings. It w ill be in terestin g to see how m any of these types of risk s are taken w hile high savings and C/D rates are retained, sim ply because m any b an k ers fear th e potential loss of deposits. In to d ay ’s m ark et it is difficult to em ploy large volum es of tim e deposits w ith o u t accepting th e dangerous p hi losophy of borrow ing sh o rt and in vesting long. I a r r e n i H an k In cest m en ! (C ontinued from page 34) fication to date, should continue to have am ple funds from deposit inflows in excess of loan dem ands through th e spring and sum m er. As a result, “bank ran g e” bonds, those m atu rin g in the first 15 years, should be in dem and and the steep positive yield curve w hich has developed over the p ast several m onths should rem ain for th e next six m onths or more, w ith p e ri odic ebbs and flows related to th e su p ply of new issues being offered for sale. T here are several w ays to ad ju st m unicipal portfolio policies to m ain tain bank earnings in th e face of falling in terest ra te s such as extending m a tu rities, com m itting new funds in N o r t h w e s t e r n B a n ke r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis longer m aturities, or buying low er grade credits for ex tra yield. C aution is w a rra n te d against all such m oves in this environm ent. R ath er th an ex ten d in g or dow ngrading, th e follow ing portfolio tactics are suggested for the n ex t few m onths. In term s of m a tu ri ties, com m it new funds or rein v est m ent funds in the four-to-eight-year range, th e eight-year area w hen the yield curve is m ost attractive, the foury ear area w hen you don’t get paid very m uch for extending fu rth er. Buy m ostly good grade, general m ark et nam es ra th e r th a n low grade credits, because spreads are not th a t attractiv e and b e tte r bonds give b etter downside protection. B uy bonds w ith slight prem ium s as opposed to p ar bonds to build in some coupon protection. Fi-< nally, search th e portfolio for tax loss situ atio n s having full coupons, liqui- i date them , and rein v est in sim ilar m a tu rity , sim ilar quality, h igher coupon bonds at c u rre n t incom e rates. * In h e re n t in these suggested portfo lio tactics is some sh o rt-run giveup in ^ yield in the in te re st of liquidity and asset quality. H ow ever, for m axim um V long-run earnings perform ance, those w ho have not y et extended th e ir hold ings would do w ell to “bite the b ul le t”—m aintain a ra th e r conservative rein v estm en t bias and w ait for a m ore * propitious tim e to purchase long-term securities.—End. 41 Let’s review theissues! The bond market changes day to day. Yesterday’s issues are old hat. Our Iowa-Des Moines bond advisors are in the market every day. They’ll provide you with the latest market quotations and buy and sell municipal bond and government securities for you. We’ll handle all the safekeeping, too. Being current makes a big difference in the return on your bond portfolio. Doesn’t your bond business belong with the leading bank in Iowa? Write or call one of your Iowa-Des Moines bond advisors: Bob Wissler, Vice President; Alan Braga, John Hunt, John John son, Bond Investment Officers; or Greg Van Gilder, Bond Representative. The Yes Bank IOWA-DES MOINES - NATIONAL BANK V . <' SIXTH & W ALNUT, DES MOINES 5 0 3 0 4 • 2 8 4 -8 6 8 6 • MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r, A p r i l , 1971 42 On Sell-Offs flood Values WillHe Annual Bond and Investment Outlook Available W r itte n E sp e c ia lly f o r T h e N o r th w e ste rn B a n k e r B y THOMAS L. RAY S e n io r V ice P r e s id e n t M e rc an tile T r u s t C o m p a n y St. L o u is , M issou ri F T H R E E years ago one had fore have been insatiable, the pow er of the cast th a t th e prim e ra te w ould be central bank is trem endous. However, 8 V2 per cent in 24 m onths followed a conclusion is th a t long term corpo by a decline of 3 per cent th e follow ra te rates w ill low er as m oney con ing year, he w ould have been called tin u es its reverse disinterm ediation mad. W ith this background any w rit and dem and for long-term funds from ten com m ents should be m ade w ith corporate tre a su re rs should slacken. fingers crossed and a p ra y e r for fo r The tax-exem pt m ark et has other giving read ers in case of alm ost cer problem s—p rim arily supply w hich u n tain error. doubtedly w ill set records. B ut again, As we look a t th e n ear future, we w ith declining loan volum e and lower m u st realize th a t W ashingtonians — in te re st rates m ore and m ore banks from the A d m inistration to th e T reas are being forced to reappraise alloca u ry to th e F ederal R eserve — have tion of assets to sustain earnings and been v ery explicit and outspoken in are again buying m unicipals. The g eneral consensus of econom ists th eir com m ents as to th e desirability (and T am not an econom ist) seem s to of having low er long-term rates. W hile th e fixed incom e m ark ets are big and be th a t we will have rising in terest dem ands for funds from all b orrow ers rates later this year. H ow ever, w ith an I GAME PLAN . , . (C ontinued from page 38) the rein v e stm e n t ran g e for replacing m a t u r i n g m unicipal bonds. T h at should be th e only com partm entalization of available funds. O therw ise, th e allocation of specific funds to specific uses leads to a ju g gling act in asset m anagem ent th a t m ight ta x any system . T herefore, m oney flows should m ove into a total pool first and th e n be allocated to as sets. This is m erely m atching asset m anagem ent w ith liability m anage m ent. To be consistent, the m anage m ent of liabilities should cu rre n tly be directed tow ard tap p in g deposit funds th a t could be locked in for a y ear or longer. Over th e nex t six m onths such funds, at to d ay ’s rates, should tu rn out to be ra th e r attractiv e (in term s of costs). This trade-off favors fu tu re earnings over c u rre n t income. The foregoing com m ents suggest no expectations of extrem e in te re st rate m ovem ents over th e n ex t six m onths. In other w ords, no repetitio n of th e spectacular sw ings of 1970. N ev erth e less, trad in g opportunities should arise, N o r t hfor w e sFRASER t e r n B a n ke r, A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis although in a m ore restrain ed p attern th a n 1970. The assum ption in these few p a ra g rap h s has been th a t both m onetary policy and fiscal policy w ill be pursued w ith m oderation and restrain t. If th a t proves not to be th e case and political considerations b e c o m e param ount, th en all bets are off. The record of 1969 and 1970 m ight th en be replayed. J u s t the th o u g h t of such a develop m en t m ight be sufficient discipline and re s tra in t for 1971. O therw ise, 1972 m ight p resen t an u n u su al economic and political spectacle—tig h t money, high in te re st rates, declining business activity and rising unem ploym ent — v irtu a lly on the eve of the P residential elections. T h at w ould not be an a t tractiv e political platform for the in cum bent.—End. T & L ACCOUNT . . . (C ontinued from page 36) The value of the tax and loan ac count balance to the individual bank depends on several factors; the b an k ’s reserv e position at the tim e the credit w as obtained, th e prem ium paid over th e c u rre n t m arket, the re tu rn (yield) election com ing in 1972 and the econ omy seem ingly still w eak, I cannot im agine a strong u p tren d in rates be fore 1973. W ith savings and tim e rates rem ain ing at th e ir highs and T reasu ry bills down from approxim ately 8 per cent to 3.40 per cent in 12 m onths, it is im possible to cover a new item on a selective basis—it has to be p a rt of the over-all mix. Some of the new 5/7-year high-grade corporate offerings are w orth looking at for the n ear term to help cover such costs. If a portfolio is set up w ith relativ e ly even m atu rities from one to 10 or 15 years, it seem s logical to continue reinvesting runoff at the long end and catch all m ark et ups and downs. We saw m any banks using th e Fed F u n d M arket last year ra th e r th a n follow ing norm al rein v estm en t procedures and m iss the best buying opportunities in history. A ctually, except in a relative view com pared to last year, tax-exem pt bonds still provide excel lent retu rn s. In m y opinion, all fixed income m ar kets w ill continue to see sw ings as u n d erw riters becom e over-im bued w ith success and push too h ard —b u t on sell-offs good values will be available. —End. >- ^ * < the bank is able to earn on additional \ loans or investm ents, and th e length of tim e the deposit w ill be in th e ac count. All of th e above have to be taken into consideration and an estim ate made before a b ank can adequately judge the value of the operation, the price it can afford to pay, and the q u an tity it w ould like to have. t E xperience over the past few years has proven such v en tu res to be profit14 able, especially for banks designated class A for tre a su ry tax and loan p u r poses. The reason for this is th a t , class A banks have had a longer aver age life on tax and loan deposits. The average life of such deposits for A banks has been approxim ately th ree * weeks. H ow ever, a w ord of caution should be injected here. On the last offering, class A banks had only about ^ 10 days. It could be th a t the average life of such deposits m ay now be cut to 10 to 20 days. A m ajor factor af fecting this is the n um ber of class A > banks in the program and the volum e of securities subscribed for. The larg er p articipation is as a whole, th e v sh o rter the average life m ay be.—E nd. 4.3 CAL YOUR COM M ERCE M/(N Fred Coulson heads up our correspondent department. That means he's your banker. The more real help he can give you, the better he feels. Keep Fred healthy. Give him a job to do today. -y C om m erce Bank of Kansas City v ■f Fred Coulson vice president in charge of banking ♦ >- a N o r t h w e s t e r n B a n k e r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E xpect in M a tu r itie s T h is F a ll W ritten E spe c ially f o r th e N o rth w e ste rn B a n k e r B y JAMES L. MILLER V ice P re sid e n t C o m m e r c e B a n k , K ansas City HE rate clim ate th ro u g h au tu m n is going to be tricky. We believe th a t short-term rates—up to one year —w on’t fall m uch lower. We also th in k the interm ediates have a short w ay to go before th ey reach th e ir bot tom and long rates will rem ain about w here th ey are now. In late autum n, we expect an u p tu rn in all the m a tu ri ties.” T “You asked how best to cover tim e and savings in terest expense in the near future. The attack on this problem is two-pronged. F irst, it w ould be best to lower the in te re st on tim e and sav ings, and second, the m onies derived from these depostis m ay be reinvested in tax-free m unicipal bonds. The best m atu rities for a m anager to buy for the next six m onths should be on the sh o rt side, w ith the idea of longer ex tension in autum n. The portfolio p er centage in m a tu rity ranges depends entirely on the bank and th e circum stances u n d er w hich it operates. It w ould be h ard to give a rule of thum b here. We th in k th a t m unicipal roll over should be invested in new m unici pal issues in the next few m onths, p ro viding the em phasis is on the sho rter end.” O ld W h y fo rw a rd -lo o k in g b a n k e rs a re b u y in g o u r INSTITUTIONAL BONDS. Why 8. C. Ziegler and Company institutional bonds? Because . . . The record $5,123,000 adjusted n et gain from operations com pares w ith $4,092,000 in 1969, an increase in ex cess of $1 million. They offer sound, secure investments. Never a dime lost. They provide the flexibility of a wide choice of serial maturities, from one to fifteen years. E arn in g s per sh are w ere $2.69 in 1970 as against $2.15 in the previous year, reflecting 1,901,569 shares out standing at Decem ber 31, 1970. They currently yield up to 8 % . Interim Paper is available from 30 days to 9 months. All strong reasons why B. C. Ziegler institutional bonds belong in your bank's portfolios — and your bank's customers. For our latest offerings, w rite or telephone collect. B. C. ZIEGLER and COMPANY Wes! Bend, Wisconsin 53095 • 414-334-5521 OFFICES: New York Chicago St. Louis San Francisco Minneapolis Memphis Toledo N o r t h w e s t e r n B a n k e r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis East Lansing Dubuque Rockford Springfield Peoria Milwaukee Green Bay Madison Republic International A 25 per cent increase in consoli dated after-tax earnings for Old Re public In tern atio n al C orporation of „ Chicago in 1970 and the achievem ent of earn in g m ore th a n $5 m illion for the first tim e w as announced by Jam es H. Jarrell, chairm an of the board. All 4 of the com pany’s subsidiaries contrib uted to the increase. Appleton Beaver Dam Fond du Lac Fort Atkinson Kenosha LaCrosse Sheboygan Wausau - vr * Mr. J a rre ll noted th a t th e increase in earnings for 1970 w as m ore th an tw ice as great as for 1969 and said the < rise in prem ium incom e from $165.1 m illion in 1969 to $180.6 m illion in 1970, th e largest in the com pany’s his- ^ tory, points out dram atically th e rapid progress th a t has resulted from d iv er sification. W illiam R. Stover, president of Old v Republic In tern atio n al, in com m enting on the com pany’s achievem ents, said th at the volum e of life insurance w rit3 ten, w hich exceeded a record $6.4 bil lion in 1970, show ed a gain of 10.5 per cent. He also revealed th a t capital and su rp lu s increased 16 p er cent. ^ 45 À Good men w ork best w ith a little freedom of action* A V A V Imagine any one of our Superheroes calling head quarters for instructions. Or waiting for the go-ahead from some higher ups. Of course, it’s unthinkable. A few weeks of that routine, and any superman worth his salt would be out looking for a new job. The simple truth is, no man who really knows what he’s doing can work for people who insist on clearing every move he makes. Good men do need a little freedom of action. Good men, of course, are the kind we want to have working for us. So we’ve done everything we could, to make sure each of our men has the freedom he needs, and deserves. The Idea Bank itself is or ganized according to the “unit president” con cept. Each division head has virtually the same freedom and responsibility as an individual business manager. He in turn is encouraged to delegate maximum responsibility to those who work for him. That kind of organization challenges each man to use his talents to the fullest. And it gives us the ability to do things more effec tively, and faster, than most banks half our size, or twice our size. That’s especially true of our Correspondent Banking Division. Aether it’s a compli cated overline, or just something simple, we can give you better service, faster, than anyone else we know. Even more important, you’ll be dealing with men who know what they’re doing, and can make their own decisions. The next time you’ve got a difficult correspondent problem you need solved quickly and creatively, consider giving Bill Aldrich a call at (312)661-5050. If he isn’t available, one of our other men will help you. No matter who it is, you’ll be in very good hands indeed. American National The Idea Bank American National Bank and Trust Company of Chicago • LaSalle at Washington 60690* Phone (312) 661-5000 Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r, A p r i l , 1971 46 in s u r a n c e American Benefit Insurance Jam es C. W hite, president, A m eri can Benefit In su ran ce Com pany of M inneapolis, Minn., repo rted th a t th e com pany had changed to its p resen t nam e this p ast year. It w as form erly known as the M innesota Commercial M en’s Association for over 65 years. F rom an operatin g standpoint, Mr. W hite rep o rted a satisfactory year. Said Mr. W hite, “Like m any com pa nies our m ajor problem s w ere related to the re c ru itm e n t of good m en to m a r k et our product. Recognizing this, the com pany has begun to look tow ard other m ethods, such as direct m ail and other advertisin g m edia.” R ecently th e com pany introduced new disability and hospital indem nity plans to m eet th e dem ands of to d ay ’s m arket. Continental Western Holding J. D. K ent, Jr., p resid en t of Conti n en tal W estern In su ran ce Company, Des Moines, has announced a success ful y ear ju s t past. P rem ium s w ritte n reached a new high of $20,257,615 in 1970 w ith a 19 p er cent gain over th e previous year. F ire and in land m arine p re m ium s w ere less th a n $100,000 be low com bined cas u a lty line w rit ings. J. D. K E N T J R . Most all fire and casualty coverages reflected im proved loss ratios and a n et u n d e rw ritin g prof it of $563,763 w as realized in spite of autom obile p ro p e rty dam age and colli sion u n d e rw ritin g losses at $366,281 and $206,336 respectively. H igher la bor costs plus th e fragile design of new er autom obiles continue to m ake them vulnerable to the once p hrased m inor dam age accident. W ith an in v estm en t incom e of $656,474 this p ast y ear policyholders’ s u r plus moved up to $8,221,680 w ith a gain of $1,210,668. A ssets reached a new high at $22,862,859. L ater this y e a r th e com bined Des Moines-based com panies of W estern H olding C orporation w ill be m oving to a new hom e office com plex a t 11201 Douglas A venue in the n o rth w e st cor n er of th e city n ear In te rsta te 35-80. The full facilities of C ontinental W est ern, C ontinental W estern Life, Conti nental W estern A cceptance and W est ern Leasing, Inc., w ill th e n afford b e t te r service and assu re continued N o r t h w e s t e r n Ba n ker, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis l*rnf/re grow th in fulfilling th e personal and com m ercial insurance m ark et th ro u g h out th e m idw estern states of opera tions and proposed expansion. Continental Western Life Im pressive gains in assets, prem i um s w ritten and insurance-in-force w ere announced by Ace D. Loomis, p resid en t of C ontinental W estern Life In su ran ce Company, Des Moines, in his rep o rt on 1970 b u s i n e s s . Conti nen tal W e s t e r n Life is an affiliate of W estern Hold i n g C orporation, and is licensed in 20 states. Mr. Loomis said a s s e t s of CWL w e r e $5,295,000, rep resen tin g a 22 A. D. L O O M I S per cent increase over the 1969 year-end. O ther 1970 year-end figures were: Life prem ium s, $4,432,000, 102 per cent increase; A ccident and H ealth prem ium s, $180,000, 54 per cent in crease; in v estm ent income, $254,000, 16 per cent increase. O rdinary life insurance in-force at 1970 year-end w as $143,726,000, an in crease of 102 per cent. Credit in su r ance in-force w as $27,091,000, a 40 per cent increase, m aking a total in-force figure of $170,818,000, for an 89 per cent increase. Employers Mutual The E m ployers M utual Companies reached two $100 million goals during 1970, P resid en t Robb B. K elley re ported at the annual m eeting of the board of directors in Des Moines. E m ployers Mu t u a l Casualty Company, the parent company, topped $100 m il lion in a s s e t s , reaching a total of $100,076,745. E m ployers Mod ern Life Compa ny, w hich sold its first policy in July, 1963, topped $100 m illion of insurance in force w ith a year-end total of $109,494,444. P rem i um incom e reflected a 54.1 per Cent increase. Mr. K elley said E m ployers M utual show ed an 8.4 p er cent gain during 1970 in p ro p erty and casualty prem i um s in th e U nited States. N et w ritte n prem ium s totaled $75,632,780, he said. > The com panies d u rin g 1970 paid out m ore th an $1,438,136 in dividends to N policyholders, principally in w o rk m en’s com pensation insurance, Mr. f Kelley said. The board of directors elected Lanning M acfarland, Jr., of Chicago, 111., to succeed George M orrell of Jo h n M orrell & Company, O ttum w a, who retired after 14 years on the board. Mr. M acfarland is presid en t and di rector of The Law B ulletin P ublishing Com pany w hich publishes legal new s papers, real estate periodicals, com- *m unity new spapers and supplies cred it inform ation to m ajor retail credit firms in the Chicago area. Mr. Kelley gave a progress rep o rt on the c u rre n t building program s of E m ployers M utual Com panies. He said the new 10-story hom e office building >~ is n earin g com pletion, and com bined w ith the existing building w ill be the largest in Iowa w ith space available for renting. Also du rin g the year the Providence, R. I., and the M ilwaukee, Wis., branches moved into new offices, a new building w as com pleted for the K an sas City, Mo., branch, and ground bro ken for a P hiladelphia b ran ch building at King of P russia, Pa. E m ployers M utual Com panies con sists of E m ployers M utual C asualty Company, E m ployers M odern Life Company, EMCASCO Insu ran ce Com pany, all of 210 Seventh Street, Des Moines, and U nion M utual In surance Com pany of Providence, R. I. Farmers Mutual Hail All officers and tw o directors of F arm ers M utual H ail In su ran ce Com pany w ere re-elected at the com pany’s 78th annual m eet ing at the firm ’s o f f i c e in Des Moines, Iowa. P resid en t M a x R utledge reported th a t once again the com pany had set an all-time rec ord of over $491 m illion of crop hail insurance in force d uring 1970 to lead the insui'ance in d u stry n atio n ally in this type of coverage. Mr. R u t ledge also rep o rted th a t total assets increased at a record pace to over $29.6 m illion and th a t su rp lu s to policyhold ers increased p ro portionately to $15.9 m illion. The m ore th a n $4.5 m illion grow th in one year in assets rep resen ts an increase of alm ost 18 p er cent for the year, also a record. He rep orted th a t claim s for hail ♦ 47 dam age to crops w ere well below the previous year. The com pany w rites crop hail in su ran ce in nine m idwestern states, and also w rites tu rk e y in surance, and provides rein su ran ce coverage nationally. j- * Financial Insurance Service 4 x r t > The y ear 1970 w as one of significant gains for F in an cial In su ran ce Service, Inc., Des Plaines, 111. The firm ’s appointm ent as ad m in istrato r of em ployee benefit p ro gram s for both the Illinois B an k ers A s s o c i a t i o n and th e O klahom a B an k ers Associa tion w as th e h ig h light of 1970. T o t a l w ritte n p r e m i u m s in creased by m ore th a n 200 p er cent R. T. H E P W O R T H com pared to 1969. The staff of em ployees at th e end of 1970 was alm ost double the y ear ago figure. O perations w ere expanded to an ad ditional seven states, m aking a total of 24 states in w hich th e firm is c u rre n tly providing in su ran ce coverages for banks. W hile some types of b an k insu ran ce are becom ing increasingly difficult to obtain und er p resen t conditions, F i nancial In su ran ce officials say th ey rem ain confident m ost of th e problem s will be solved. F o rtu n ately , m ost bankers are aw are of the c u rre n t difficul ties and are tak in g th e necessary steps to im prove th e ir operations and reduce the exposures. R. T. H epw orth, president, stated: “We reg ard th e fu tu re optim istically. We look to an o th er y ear of solid grow th d u rin g 1971 although we ex pect th e ra te of grow th to be somew h at less th a n last y e a r’s.” General United G eneral U nited Life In su ran ce Com pany, W est Des Moines, w hich has 385 bank clients w ritin g cred it life in s u r ance in 13 states, had a sta tu to ry op eratin g profit of $236,247 in 1970, an increase of 133 p er cent over 1969, J a c k Schroeder, p r e s i d e n t and ch airm an of the b o a r d , has announced. The com pany’s profit on an adjusted ba sis w as m ore th a n $600,000 for th e year, Mr. Schroeder added. G eneral U nited L ife’s assets on De cem ber 31, 1970, w ere slightly m ore https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis th an $87 million, an increase of nearly $7 m illion over 1969, Mr. Schroeder re ported. P rem ium incom e in 1970 w as $25 m illion and insurance in force totaled $1,269,000,000 at th e end of 1970, he said. L ym an B. H ughes, senior vice presi dent of G eneral U nited Life, heads up the com pany’s credit life division. Fieldm en include Dave Huso, Love land, Colo.; Don N achtm an, Dubuque, and Jim VandeK am p, Des Moines. G eneral U nited L ife’s credit life clients are in Alabama, Colorado, Idaho, Illi nois, Iowa, Indiana, M innesota, Ne braska, N orth Dakota, South Dakota, U tah, W isconsin and W yom ing. Life Investors Inc. Life Investors is a financial organi zation th a t concentrates on life in su r ance, m u tu al funds, banking, real es tate ow nership and developm ent, and hospital accounting com puter services. Lincoln Benefit Life Lincoln Benefit Life Company, th ro u g h its president, Robert H. Rydm an, announced th a t the Lincoln-based insurance concern recently passed the $100,000,000 m ark in life insurance in " ' " ‘ force. In addi tion to the com p an y ’s o r d i n a r y life insurance op erations, w h i c h h a v e produced ou tstan d in g gains d uring the past th ree years, re cently Lincoln Benefit has devel- Life In vestors, Inc., rep o rted record resu lts for the year ended Decem ber 31, 1970. N et earnings increased to $2,808,199, equal to 86 cents per share, R. H. R Y D M A N <>ne 0 t t h e from $2,211,896, or m ost progressive 68 cents a share, credit life program s on the m ark et to in 1969. day, being presented by an aggressive Ronald L. Je n and know ledgeable field force. sen, chairm an of The com pany has produced twothe board, said th ird s of its business in force since the the increase w as beginning of 1968 and is recognized as generated e n tire the fastest grow ing ord in ary life in ly th ro u g h in te r su re r in the state of N ebraska. nal grow th, p ri In announcing year-end results, Mr. m arily insurance Rydm an stated th a t the adm itted as o p e r a t i o n s . H e sets of the com pany had increased also noted that: from $7,385,182 to $8,870,412 d uring Life in surance in force now exceeds 1970. th e $1 billion m ark, and life insurance Lincoln Benefit Life Com pany is a assets and sales reached record highs. p a rt of The G reater N ebraska Corpora T here w as a gain in the sale of m u tion. tual funds in com bination w ith the p u rch ase of endow m ent life insurance, although over-all m utual fund sales National Fidelity Life O perating resu lts for 1970 have been and assets w ere less th a n in the p rio r year. announced by N ational F id elity Life E q u ity product sales w ere higher, as Insu ran ce Com pany of K ansas City, the re su lt of increased m ark etin g of Mo. The com pany, com pleting its 55th year, increased in real estate in v estm en t tru s t shares, and real estate operations in general surance in force t o $1,345,366,081 m ade good progress, except for mobile hom e p ark developm ent, w hich in as of Decem ber cu rred a m odest loss. 31, 1970, according Mr. Jen sen estim ated th a t insurance to R obert F. Rosprem ium volum e w ill rise by approxi enburg, p resid en t m ately 50 per cent in 1971, largely be and chief execu tive officer. The cause of new ly expanded life in su r ance operations. The com pany ac gain of $116,418,quired B ankers U nited Life A ssurance 906 w as an in Company, Oak Brook, 111., in Decem crease of 9 per ber, and F irs t P en n Pacific Life in su r cent over the toance Company, H arrisburg, Pa., in F eb -tal life insurance in force a year go of ru ary , 1971. $1,228,947,175. The gain includes a O utside the insurance field, in No decrease in F ederal Em ployees Group vem ber, 1970, Life Investors purchased Life In su ran ce of $6,351,800 and an in convertible p referred stock in E xecu crease in Servicem en’s Group Life In tive D ata System s, Cedar Rapids, surance of $20,314,400. w hich, if converted, w ould re su lt in Individual life insurance in force 68 p er cent ow nership of the one-line w as $422,530,300 com pared to $337,304,com puter service firm. 200 at th e end of 1969. The increase N o r t h w e s t e r n B a n k e r , A p r i l , 1971 48 w as $35,226,100 for 1970 com pared to $27,341,500 for 1969. The volum e of new individual life sales w as $89,788,000 com pared to $90,473,900 for 1969, reflecting th e con tinued em phasis on th e acquisition of higher q uality business at low er costs. The volum e of group life insu ran ce production, including credit life in su r ance, w as $431,192,500 com pared to $427,469,700 last year. F irs t y e a r individual life prem ium s w ere $1,434,160 com pared to $1,352,250 for 1969, an increase of 6 per cent. To tal first y ear and renew al y ear individ ual life p rem ium s w ere $7,441,300, an increase of 4 p er cent over $7,148,500 for 1969. T otal life in su ran ce p rem i ums, including group and credit life in surance, w ere $17,516,700, an increase of 1 p er cent over $17,386,400 for last year. F irs t y ear individual h ealth p rem i um s decreased 19 p er cent from $1,046,600 to $849,200 d u rin g 1970 as a re su lt of the term in atio n of th e sale of u n profitable policies, w hile total first year and renew al y ear individual health prem ium s increased 5 p er cent from $4,026,200 to $4,244,100. T otal h ealth insurance prem ium s, including group and credit h ealth insurance, w ere $8,709,800 com pared to $8,612,700 a year ago. N et incom e from in vestm ents w as $2,894,900 com pared to $2,424,000 d u r ing 1969, a gain of 19 per cent. Total incom e increased to $29,216,800 com pared to $28,549,100 in 1969, an increase of 2 p er cent. Total assets gained 9 per cent to $61,308,000, an increase of $5,179,500 over D ecem ber 31, 1969. The com pany now has $1.21 of assets for each $1 of lia bilities, com pared to $1.18 a year ago. Square Deal The Square Deal in su ran ce Compa ny of Des Moines, Iowa, set new alltim e records in 1970. According to Merle D. M organ, p resid en t and gen eral m anager, the firm, w hich has specialized in the w ritin g of croph a i 1 i n s u r ance since its inception over 50 years ago, set all-time rec ords in a s s e ts , prem ium w ritte n and policyholders’ s u r p l u s du rin g 1970. Mr. M organ told th e firm ’s 51st annual m eeting th a t prem ium incom e rose 9 per cent, assets reached $5,061,238, w hile policy h o ld ers’ su rplus stood at $4,588,836. Capital Notes Issue M organ G u aranty T ru st Com pany of New York plans to issue $100,000,000 principal am ount of capital notes due A pril 1, 1978. The offering, w hich is subject to authorization by th e su p er in ten d en t of banks of the State of New York and approval by the Board of G overnors of the F ed eral R eserve S3^stem , w ill be u n d e rw ritte n by a n atio n w ide group of in v estm en t firm s headed *~ by M organ S tanley & Com pany, In corporated. The captal notes w ill m atu re on A pril 1, 1978, and w ill not be redeem able prior to m aturity. Joins ABA Staff H am pton A. Rabon, 59, form er Dep u ty Fiscal A ssistant S ecretary of the T reasury, has joined the staff of The A m erican B ankers A ssociation as asso ciate federal adm in istrativ e adviser. His appointm ent w as announced re cently by A.B.A. E xecutive Vice President W illis W. A lexander. In his new post w ith th e A.B.A.’s governm ent relations division, Mr. Rabon’s duties w ill include m atters in volving th e relationship of th e asso ciation’s 13,500 m em ber banks w ith the F ederal b an king reg u lato ry agencies x and other agencies in the executive branch. HERE'S WHAT WE DO FOR YOU. MR. BANKER At Continental Western Credit Insurance Department ------ We offer the fastest and finest service for you and your customers. ------- Our fully computerized program is easy to administer, saving you time and money. ------ The economies of our credit insurance operation are passed on to you. ■ ------ We offer peace of mind for you, as the community banker, by allowing you to offer your customers the finest and most complete credit insurance program. Continental Western Life Bank Depositor Plan is one of the finest in the industry. We build strong bank depositor relationships by using the finest product on the market. Contact us when considering one. FOR FURTHER INFORMATION WE INVITE YOU TO CALL COLLECT ( 5 1 5 - 2 7 6 - 6 7 6 7 ) Ask for: Tozz Robinson, Agency Director. VINTON S, NUTT PAUL T. WOLD Executive Vice President Credit Insurance Manager CON TIN EN TAL W ESTERN LIFE INSURANCE COM PAN Y Des Moines, Iowa Digitized N o r t hfor w eFRASER s t e r n Banker, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 49 charge from the A rm y, he retu rn ed to Standard B ank w here he assum ed the duties of note teller and tw o years later wns appointed pro-cashier. In June, 1970, he w as elected cashier, a position he held u n til his election to cashier and secretary. * Illinois NEW S F. W. HEITMANN, JR. President Chicago H. D. Koeneeke ROBERT C. SCHRIMP1.E Exec. V. P. Chicago H. D. Koeneeke, presid en t and chairm an of the board of directors of the F irs t State B ank of H arvey, died recently at th e age of 56. Mr. Kroenecke w as also p resident of the F irs t State B ank in F ennim ore, Wis. Born at Ceylon, Minn., Mr. Koenecke spent his en tire business career in banking. A fter w orking in K im ball, Minn.; P ortland, Ore., and C antril, Iowa, in 1956 he purchased the con trolling in te re st of th e F irs t State Bank in F ennim ore, Wis. He founded and began th e H arvey b ank in Decem ber, 1962. 4 Illinois Group Officers a " ^ >'■ v ~ * *■ A “ * v New officers elected durin g the annual group m eetings in Illinois are as follows: Group 1: P resident, H a rry P. B urke, N ational B ank of A ustin, Chicago; sen ior vice president, P au l R. Bere, State B ank of Clearing, Chicago; vice p resi dent, R obert C. H um phrey, State National Bank, E vanston; tre a su re r, Rob ert E. H unt, N o rth ern T ru st Company, Chicago; secretary, M argaret R. H ad ley, Chicago D istrict IBA, Chicago. Group 2: P resident, Ronald N. J o h n son, O rland State Bank, O rland Park; vice president, Jo h n W. G erber, National B ank of F airb u ry , F airb u ry ; secretary -treasu rer, H arley G. Davis, F irst T ru st & Savings Bank, K an k a kee. Group .3: P resid en t, LaV erne M. Woods, F irs t N ational Bank, Antioch; vice president, E ugene C. E rn stin g , Roselle State B ank & T ru st Company, Roselle; secretary -treasu rer, L aurence H enning, Y orkville N ational Bank, Yorkville. Group 4: P resident, Gordon E. Sears, Citizens F irs t N ational Bank, P rin ce ton; vice p resident, Jo h n B uford, Mid w est B ank of F reep o rt, F reep o rt; sec retary -trea su re r, George A derton, president, Citizens S tate B ank, Mt. M orris. Group 5: P resid en t, E d w ard L. T read way, F irs t N ational B ank, Staunton; vice president, P aul Slack, State S treet B ank & T ru st Com pany, Quincy; secre tary -treasu rer, H arold N. Sm ith, F a rm ers State B ank, Pittsfield. Group 6: P resident, W. E. Saxton, S tate B ank of L aH arpe, L aH arpe; vice president, Gerald E. C onaghan, P ek in N ational B ank, Pekin; secretary -treas u rer, E d w ard E. Zilm, Citizens N ation al Bank, Toluca. Group 7: P resid en t, G erald L. O’Neill, A m e r i c a n N ational B ank, Cham paign; vice president, W illiam F. M cCarty, Tuscola N ational Bank, T u s cola; secretary -treasu rer, A. J. W eitekam p, F irs t N ational B ank, Rantoul. Group 8: P resident, W illiam E. P a rr, H ardw are State B ank, Lovington; vice president, Jo h n W. L u ttrell, F irs t N a tional B ank, D ecatur; secretary -treas u rer, Jo h n M. Jones, W illiam sville State Bank, W illiam sville. Group 9: P resident, C harles F. Ar- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis buthnot, F irs t N ational Bank, Wood River; vice president, K enneth Milam, Salem N ational Bank, Salem; secre ta ry -treasu rer, E rn e st A. K arandjeff, G ranite City T ru st & Savings Bank, G ranite City. Group 10: P resident, G. W allace Rich, F irs t N ational Bank, Cobden; vice pres ident, K enneth I. W ard, Fairfield N a tional B ank, Fairfield; secretary-treas u rer, Lloyd K. H enderson, C arterville State & Savings Bank, C arterville. Bank of Wood Dale A t th e ir recen t annual m eeting, stockholders of the B ank of Wood Dale elected tw o new m em bers of the board of directors, V ernon S. Hoesch of N a perville and H a rry E. M ertz of Des Plaines. Mr. M ertz w as also nam ed executive vice p resident and w ill be th e senior active operating officer of th e new bank. Mr. M ertz has been p resid en t of the Des P laines T ru st and Savings B ank in Des Plaines. He assum ed the posi tion w ith the Bank of W ood Dale on M arch 15. Mr. Hoesch is p resid en t of F irs t Og den C orporation, a b ank service firm. A t th e organizational m eeting follow ing the stockholders’ m eeting, two Wood Dale m en w ere elected vice p res idents of th e B ank of W ood Dale. H er b e rt H ibnick, ow ner and m anager of Sievers P h arm acy in W ood Dale, and W. C. “B ud” P ra th e r of W ood Dale w ere nam ed to the posts. Both m en had p reviously been directors. Buchler Named Cashier The board of directors of the H e rit age B ank of W oodridge, W oodridge, has elected R onald M. B uchler cash ier and secretary of the bank. Mr. B uchler began his banking ca re e r at S tandard B ank and T ru st Com pany of Chi cago in Jan u ary , 1965, as a teller. H i s em ploym ent w a s in te rru p te d from Septem ber, 1965, to Septem ber, 1967, for a to u r of d uty w ith the U. S. Army. R. M. B U C H L E R Follow ing his dis Announce Reorganization C entral N ational B ank & T ru st Company, Rockford, has announced a reorganization of th e tru s t d ep art m ent. The tru s t and in v estm en t serv ices division has been established to encom pass both tru s t and services and the new in vestm ent m anagem ent services. .John A. Resh, vice president and tru s t officer, will head th e tru s t and in v estm en t services division. In ad dition, he will continue to m anage the tru s t services departm ent. A us tin G. Sexton, inv estm en t m anager, is responsible for th e in v estm en t serv ices departm ent. O ther officers w ho w ill serve the new division in an ad visory capacity are E lm er A nderson, senior vice president, and W illard C. Mills, in v estm en t officer. Murphy Vice President R ichard D. M urphy has joined the M ichigan A venue F inancial Group, Inc., as vice president. In m aking the announcem ent, R ichard L. C urtis, p res ident, stated th a t Mr. M urphy w ill be in charge of all real estate develop m ent v en tu res of the Group. Mr. M urphy m ost recently served as a real estate co n sultant for., several com panies. F o r seven y ears he was executive secretary of the A m erican In stitu te of Real E state A ppraisers. Mr. M urphy is a fourth-generation Chicagoan, w hose fam ily w as prom i n e n t in m eat packing and real estate. He attended Loyola U niversity and re ceived his Bachelor of A rts degree in Econom ics from L oras College, Du buque, Iowa. ILLINOIS NEWS . . . (T u rn to page 51, please) N o r t h w e s t e r n B a n ke r, A p r i l , 1971 Illinois N ew s Thetas Taken A t !llinais tireup Meetings GROUP FOUR O FFIC ERS elected a t F reep o rt are from le ft: Im med. P a st Pres. Omar C. W ilhelm s, cash., F irs t St. Bk., Shan non; Pres. Gordon E. Sears, exec. v.p. C itizens F irs t N atl. Bk., P rin ceto n ; Vice Pres. John Buford, pres., M idw est B ank of F re e p o rt; Secy.-Treas. George Aderton, pres., C itizens St. Bk.. M ount M orris, and Charles J. W irth, exec., v.p., Colonial B ank of Rock ford, and a p a st pres. & m em ber of IB A Council of Adm. R IG H T — Jack H. B eaulieu, pres., Glenview St. Bk., and G ilbert H am blet, TRW C redit D ata, Chicago, ap p ear on Gr. 3 program a t St. Charles. Mr, B eaulieu served as Gr. 3 pres, th is past year. GROUP 1 M E E T IN G in Chicago drew more th a n 500 guests. P ic tu re d above, le ft to rig h t, are: L E F T — B ill K urtz, pres, of Gp. 1 and sr. v.p., A m erican N atl. B&T, Chicago; Frank Bauder, Gp. 1 treas. and also dim . of C entral N atl., Chicago; H arry P. Burke, pres.-elect of Gp. 1 who w ill tak e office Ju ly 1 and also pres., N atl. B ank of A ustin, Chicago, and a co n su ltan t to P resid en t N ixon, who was dinner speaker a t Gp. 1. R IG H T — A llen P. S tu lts, v.p. of the ABA and chinn. of A m erican N atl. B&T, Chicago; Roland W. B laha, Illinois commissioner of b an k s; R obert Schrim ple, exec, v.p., Illinois B ankers Assn., Chicago, and Fred W. H eitm an, Jr., pres, of Illinois B ankers Assn, and pres., N orth w est N atl., Chicago. IB A V ICE PR ES. L ew is H . Clausen, pres., Cham paign N atl. Bk., v isits a t Group 5 w ith Gr. P res. R obert E. R itch ie, v.p. & cash., S tate Bk. of Jersey v ille, and new Secy.-Treas. G lenn W. Storme, pres., F irs t N atl., C arbondale. R IG H T — Gr. 6 officers N o r tfor h wFRASER e s t e r n B a n ke r, A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis include from le ft: Secy-Treas. E rn est H. Zilm, chmn., Citizens N atl. Bk., Toluca; V. P. G erald Conaghan, pres., P ek in N atl. Bk.; Im med. P a st P res. Don B aily, pres., Table Grove St. Bk., V and P res. W. E. Sexton, exec, v.p., S ta te B ank of L aH arpe. Illinois News f)l ILLINOIS NEWS . . . (C ontinued from page 49) SH R EW D B U Y ER S AUTO M ATE W ITH A U TO M ATIC COIN W RA PPERS Name Henning C hristian H enning has been nam ed vice p resid en t and tru s t officer a t GaryW heaton B ank in W heaton w h ere he w ill supervise financial p lanning and em ployee benefit plans. The announce m ent w as m ade by M arion G. Hocker, p resid en t of G ary-W heaton B ank. Mr. H en n in g received his B.S. de gree from Loyola U n iv ersity in 1964, and his J.D. degree in 1968, also from Loyola U niv ersity w here he w as presiident of th e Blue Key N ational H onor Society. D uring these years, he also served as a m em ber of the U nited States M arine Corps R eserve (1960-66). He is a m em ber of th e Illinois Bar Association, as w ell as th e A m erican B ar Association. Marian Carter Promoted M arian C arter is th e new ly ap p o in t ed vice p resid en t in charge of cus tom er service a t th e B everly B ank, Chicago, w ho u rges young w om en to get into banking because of th e rapidly expanding oppo rtu n ities for career develop m ent. In h er own case, it w as th e arriv al of th e com puter on th e b anking scene th a t speed„„„ sd up h er promotions. In stead of displacing em ployees as is often feared, because it produced so m any rep o rts involving m arketing, geographic and occupational inform ation th a t services expanded. “In 1962 I knew no th in g about com puters. B ut because of m y w ide range of b an k in g experience I knew w h a t should happen in th e m achine’s com p u tatio n s.” Mrs. C arter, th e n in the bookkeeping and accounting d ep artm en t, w as tested for com puter ap titu d e and accepted for on-the-job tra in in g in program m ing along w ith 40 others. Only a fo u rth of th e class finished, and she w as am ong th e top students. AUTOM ATIC COIN For details on other high quality "S teel-S trong" Coin Handling Products, call your dealer or send coupon. The C. L. DOWNEY COMPANY / New Charter The new F irs t Security B ank of Cary-Grove, Cary, has received a ch a r te r from th e State of Illinois Commis sioner of B anks and T ru st Companies, R oland W. Blaha. The issuance of the ch a rte r p erm its th e bank to begin con structio n of the new building, and to open for business as soon as it is com pleted. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WRAPPERS * Precision made on special machines from finest quality materials. ■ ‘ Patented Red Bordered Windows automatically indicate the total amount and denomination of contents. ■ Diameter of coin automatically positions value of contents in red window openings. ■ Save time for tellers, buyers, stockkeepers and depositors. Eliminate errors. » For years a favorite with leading banks and financial institutions. ■ Wrap all coins from 10 to $1,00 in following amounts: 500 in pennies $10 in quarters $2 in nickels $10 in halves $5 in dimes $20 in dollars ■ Packed 1,000to a box. Tapered edges. Available Imprinted. HANNIBAL, MISSOURI, DEPT. N PLEASE SEND FREE DETAILS ON "STEEL-STRONG" COIN HANDLING PRODUCTS TO*. Name--------------------------------------------- Title,Firm _______________________________ A ddress_____________________________ City___________________________ State AROUND MONEY THE FI N E S T IS "STEEL-STRONG" N o r t h w e s t e r n B a n k e r, A p r i l , 7971 52 Jr DISCOVER ART HAESSIG... A BANKER WHO CARES Meet the bankers who care, and care about you at the American. Art Haessig is just one of the many depend able experts in the Correspondent Banking Department at the American. Serving correspondents successfully requires sound counseling, cooperative loan participation, modern data processing equipment and in-depth banking expertise. You get all of these and more at the American.. You can depend on the highest professional stan dards, business integrity, responsibility, and complete satisfaction, too! Not only from Art, but from everyone at the American. And to these essential ingredients, the American offers you one more . . . our own special brand of service. At American National Bank, this means more than just a friendly smile . . . although we have that, too. What it really means is building a special kind of sound and solid business relationship that’s based on trust and confidence.Discover the people at the American, we care about your banking. 7th & ^Robert 228-2345 St cPaul. cMmn 55101 Member F. D. I . C. N o r t h w e s t e r n B a n k e r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V. Y 53 Promote Two at Edina Minnesota NEW S 4 M. R. CAMPBELL F. L. JEFFERS President Exec. V. P. E xp ress v i ' > 3 is Si i'o n e ern H E M innesota B an k ers Association financial life of over 100 Minnesotahas expressed its concern to the based one-bank holding com panies F ederal R eserve B oard in W ashington w ould be jeopardized. “The regulation proposed relating to on two areas in w hich th e Board m ight act in connection w ith th e am end the sale of in su ran ce by th e holding m ents to th e B ank H olding Com pany com pany appears to us to be u nduly Act passed a t th e end of 1970. E x cerp ts re stric tiv e and not in keeping w ith the from th e MBA le tte r addressed to Dr. language of the sta tu te or legislative A rth u r B urns, ch airm an of th e Fed, in ten t. It appears to re stric t insurance sales to persons th a t have p resen t b an k are as follows: “We are specifically concerned about relatio n sh ip s.” th e possibility th a t th e B oard m ay adopt restrictiv e guidelines relativ e to Name Timm as President the debt to equity ratio w hich a com G lendon M. Tim m w as elected p resi pany acquiring a single b ank m ay not den t and K enneth G. N elson w as exceed. Secondly, if some m easure is nam ed vice president and cashier of adopted, w ould th a t sam e m easure be th e F irs t N ational B ank of Lakeville, used in approving th e tra n sfe r of all Minn., a t a special shareh o ld ers’ m eet or a m ajor portio n of the stock of a ing, it w as announced recently. Mr. com pany ow ning one bank and w hich T im m p reviously w as executive vice w as form ed p rio r to th e effective date p resid en t and cashier. Mr. Nelson w as vice president. of the act? “M any recen t acquisitions of sm all ru ra l b anks have been th ro u g h the one-bank holding com pany device. In some cases the debt to equity ratio has been h ig h er th a n 60 p er cent. W e feel th a t in order to m ain tain in dependent ow nership of sm aller banks, th ere m u st be a set of guidelines established w hich w ould not u n d u ly re stric t th e purchase and financing of b an k stock by individuals. T h e s e guidelines should reflect b an k size, size of th e K. G. N E L S O N G. M. T I M M holding com pany, ow nership of the Two new directors also w ere elected. stock of th e holding com pany, m anage m ent ability, reasonable expectation of T hey are W. G. A ndrew s, St. Paul, and orderly rep ay m en t of th e debt, lack of M aynard Johnson, vice presid en t of ability to m a rk e t th e holding com pany H itchcock In dustries and m anager of stock to create additional equity, and its A irlake In d u stria l P a rk w hich is size of th e com m unity w hich th e b an k located in Lakeville. Mr. A ndrew s, w ho is chairm an of serves. “A nother area of concern involves th e board of Mid A m erica Bancorporabank in su ran ce agencies. The v ast tion, Inc., purchased the bank in Ja n u m ajo rity of th e existing one-bank hold a ry from H itchcock Industries. Carlton ing com panies of th is state include H itchcock, presid en t of H itchcock In general in su ran ce agencies. In order d u stries and form er p resid en t and di to m eet the In te rn a l R evenue Service recto r of th e bank, has resigned his incom e te st to provide th e tax sh elter b an k posts. Mr. Tim m served w ith the N o rth for ban k stock dividends, a broad base of in su ran ce sales m u st be perm itted. w estern N ational B ank of M inneapolis L acking sufficient non-dividend and for 18 y ears in com m ercial loan, cred in te re st sources th e 85 p er cent exclu it, and train in g dep artm en ts before sion is elim inated. The holding com joining F irs t N ational B ank of L ake pany will th e n n o t have sufficient after ville in 1969. Mr. N elson cam e to the tax incom e to service th e debt in cu rred b an k in 1970 a fter 18 y ears w ith in purch asin g th e b ank stock. The N o rth w est B ancorporation. T -V Crookston Minneapolis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis K. A llan N elson has been prom oted to a ssistan t cashier and Mrs. M ary Gene B ogren to account service officer at E dina State Bank, E dina, as re ported by David Flem ing, president. Mr. N elson’s previous b anking expe rience includes w ork at th e F irs t G rand A venue State Bank, St. Paul, w here he w as an a ssistan t cashier in charge of personnel and operations, and F irs t E dina N ational B ank w here he w as personnel m anager, Mr. Nelson, recen tly em ployed by the E dina State Bank, is a graduate of G ustavus A dolphus College, St. Peter, Minn., w ith tra in in g from th e U niver sity of M innesota extension d ep art m ent and A m erican In stitu te of B ank ing. Mr. Nelson is active in a w ide v ariety of com m unity and business af fairs. He is a m em ber of A m erican In stitu te of B anking, B ank A dm inis tra tio n In stitu te and th e Tw in City P ersonnel Association. Mrs. Bogren has been w ith the E dina State B ank for five y ears and has been a lifelong resid en t of EdinaSouthwest: M inneapolis area. St. Croix to Board Donald R. St. Croix has been elected to th e board of directors of Suburban N ational B ank of Roseville. He becomes the eighth director of th e new bank, w hich opened adjacent to th e Rosedale Shopping C enter in May, 1970. Mr. St. Croix is the founder of M er chants Cartage, Inc., and M erchants Leasing, Inc., St. Paul. Wins Mexico Trip Mrs. E lsie Pearson of W inona w as recently presented tickets to Mexico by M erchants N ational B ank P resid en t Gordon R. Espy. The contest was sponsored by the C hristm as Club Cor poration, New York City. Authorize Stock Increase T he b anking division of th e Minne sota D epartm ent of Comm erce has au thorized an am endm ent increasing the capital stock of Citizens B ank and T ru st Company, H utchinson, from $400,000 to $500,000 by stock dividend. Elected to Board W illiam N. Rom w as elected to the board of directors of the F irs t N ational Bank of Ely. He fills the vacancy created by the resignation of Jo h n Lozar a t th e an n u al m eeting in J a n u ary. Mr. Rom is a grad u ate of th e U n iv ersity of M innesota and he served five y ears w ith th e N avy in W orld W ar II w here he attain ed th e ra n k of lieu ten an t com m ander. N o rth w e s t e r n B a n k e r, A p r i l , 1971 GROUP of T w in Cities ban k ers has form ed a com m ittee to get ready for th e “less check” society. T h ey ’re going to begin contacting re p resen tativ es from g o vernm ent and large com panies in terested in plan n in g for the day w hen m oney will com m only be tra n s ferred by com pu te r i m p u l s e as w ell as by check. J. C. Welman, Jr., s e n i o r vice p resid en t in the operations a n d control group at the F irs t N ational J. C. W E L M A N . JR. B ank of Minneapoplis, has been elected chairm an of the new group. Mr. W elm an em phasized th a t the com m ittee, called SCOPE (for Special Com m ittee on P aperless E n trie s), has not been organized “to dream about the day 20 y ears hence w h en everyone will have com puter term in als in th eir hom es.” “This is a group of practical m en A in terested in the specific problem of tra n sfe rrin g funds w ith o u t checks.” As an exam ple of paperless tran sfer of funds, Mr. W elm an cited the possi bility of a large com pany issuing its en tire payroll on com puter tape. The tape w ould be given to an individual bank w hich w ould tra n sfe r the funds to the oth er banks in the area through an A utom ated Clearing House. Depos its could then be m ade to all the em ployees’ personal accounts, regardless of w here th ey banked. C urrently, it is possible to pay in th is m an n er inside one b an k —b u t not betw een banks. “By establishing com patibility in the electronic tra n sfe r of funds,” said Mr. W elm an, “it w ill be possible to capture the cost savings of electronic tra n sfe r w hile p reserv in g the com petitive n a tu re of th e b anking in d u stry .” T he new SCOPE group in the Tw in Cities has been preceded by a local stu d y com m ittee and by the A m erican B ankers A ssociation spearheading task force MAPS (M onetary and Paym ents System s) Com m ittee. MAPS w as com posed of senior executive officers from some of th e n atio n ’s largest banks. MAPS, in an interim rep o rt pub lished last Septem ber, outlined th e pos sibilities in h e re n t in paperless entries w hen it noted th a t th ere w ere 22 bil lion checks w ritte n in the U nited States du rin g 1970 and th a t by 1980 th ere w ould be about 44 billion. Most of these checks clear th ro u g h 36 clear ing areas—including M inneapolis-St. Paul. The local stu d y group, form erly headed by F ederal R eserve B ank Vice P resident L. W. Fernelius, established goals and objectives, th en reform ulated itself into SCOPE to carry out action. SCOPE com m ittees began on th e W est Coast w here it is expected th a t p ap er less payroll tran sfers w ill commence in 1972. * P iper, T affray & H opwood ____ INCORPORATED w INCORPORATED .BUSHED 18 95 • MEMBER NEW YORK STOCK EXCHANGE ■v _____ M IN N E A P O L IS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * Prom otion of Charles M. Tilden to a ssistan t vice presid en t in the corpo ra te tru st division has been announced by F irs t N ational B ank of M inneapo lis. Mr. Tilden began his career w ith F irst M inneapolis in 1962. He served initially in th e personnel and op erat ing areas of th e bank, and in 1966 joined the tru sts and in v estm en t m an agem ent group. Since 1968 he has been in th e corpo rate tru s t division as an ad m in istrato r of corporate tru s t and corporate agen cy accounts. * m g L v if > j j | , e g r o w i n f l 0 " ' * * * F u n e ra l services w ere held recently for Robert, E. Towey, form er vice p res ident and tru s t officer at th e M idland N ational Bank, M inneapolis. He died in Naples, Fla., a t 74. He had served as vice p resid en t and tru s t officer of tw o banks in N aples after his re tire m en t from M idland. T hree new directors and six new of ficers have been elected by Dain, K al m an & Quail, Incorporated, M inneapo lis-based regional inv estm en t banking firm. Elected new directors are Thomas M. Dale, M inneapolis, vice president, retail m erchandising; Richard A, Gad- 00 Gil Falk John Ordos Ernie Pierson M idland’s team will be dropping in... If you have a ‘basket fu ll’ of operational hang-ups—let M idland’s Full Service T eam ‘coach’ you. We’ll help on investments, credits, collections, data processing or sys tems and procedures. O u r Team travels far and wide w ith no tricky ‘ball handling’.1 hey’11‘g u ard ’your safe keeping items and will always give you ‘forw ard think ing on financial problems. You take no ‘long shots with the m en of M idland. Every play is a ‘lay-up’ to the scoreboard—we’ll help you score big and fa st—w ith no ‘floor burns’ or penalties. T ake a tip —call one of M idland s Fabulous F ront Five—T O D A Y ! 612/332-0511 Loren H e rb st © M idland National Bank o f Minneapolis ( || ) 4 0 1 S e c o n d A v e n u e S o u th • M in n e a p o lis , M in n e s o ta 5 5 4 8 0 M em ber Fed eral D ep osit In su ran ce Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r, A p r i l , 197Ì 56 Twin Cities News p resid en t and re s ident m anager of th e Southdale of fice. N e w l y elected v i c e presid en ts are: I) a n i e I F. Finnane and Paul R. Krausch, in sti tu tio n al d e p a r t m ent, and Robert F. Nute, m anager, R. M A R T I N mutual funds. E lected a ssistan t vice p resid en t w as Peter A. Randall, corporate services departm ent. Darryl P. Ekstrom, con troller-operations accounting, has been elected assistan t secretary, and H. James Roitenberg, a secu rity an aly st in the research departm ent, has been elected an a ssistan t vice president. In addition, Robert R. Martin, vice president, has been prom oted to m an ager, m unicipal bond departm ent. Two oth er m en have recen tly joined the firm. Thomas M. Neitge has joined the corporate services d epartm ent. He has been a corporate finance specialist w ith B atem an E ichler, H ill R ichards, Inc., an in v estm en t firm in Los A nge les. Charles F. Cozzens joined the firm as a secu rity an aly st in th e re search departm ent. H e has been a se cu rity an aly st and officer w ith the in v estm en t research dep artm en t of F irst N ational City Bank, New York City. * IN G E R S O L L FIN N A N E KRAUSCH NUTE G A D IEN T KOPP * H O IU M PETERSON Mr. Ingersoll joined B ank Shares in 1970 as m anager of the holding com p a n y ’s data center. Mr. P eterso n w as w ith Control Data C orporation p rio r to joining B ank Shares as operations m anager of the data processing division in 1970. Mr. H oium joined B ank Shares in 1966 from Control D ata w here he w as an applications in stru cto r. He has been m an ager of system s and p rogram m ing for the division. * DALE * The board of directors of B ank Shares, Incorporated, M innesota-based reg istered bank holding com pany, has elected Ronald Ingersoll vice president of th e data processing division. Also prom oted to officer statu s in the data processing division w ere Robert F. Peterson, w ho w as elected opera tions officer, and Jerry Hoium, w ho w as appointed system s officer. * * W ork has started on a construction pro ject at th e H auschild Building, 5050 F ran ce Ave. S., E dina, Minn., it w as announced last m onth by Mobile A m ericana Corp. (MoAmCo), St. Paul, Minn. The building, purchased by the com- INSTALMENT DEPARTMENT PROFITS More important than ever before 1 PROTECT THEM Several hundred Upper Midwest banks utilize our single interest coverage, which we originated many years ago. No checking for primary insurance. Instalment lending protection is our only business. Call or W rite: G. 0. VAN WAGENEN CO. 1006 N.W. lank Bldg., Minneapolis 55462 (6121 333-2261 N o r t h w e s t e r n B a n ke r. A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pany in Septem ber, 1970, is being en larged and rem odeled to serve as new q u arters for the Edina State Bank and MoAmCo’s general office. The bank, acquired by Mobile A m er icana in Jan u ary , 1970, is p resen tly lo cated at 5036 F ran ce Ave. S. n ex t to the H auschild B uilding. The com pany is now head q u artered at 80 E. V adnais Boulevard. The bank w ill occupy the m ain floor of the rem odeled stru ctu re, w hile Mo AmCo’s offices w ill be housed on the second floor. F. Paul Hargarten, MoAmCo p resi dent, said the project is designed to allow both bank and com pany to ex pand th eir services to custom ers. The bank w ill have 7,200 sq uare feet of floor space at the new location com pared w ith the 3,500 square feet it occu pies now. C onstruction is expected to be com pleted by fall. A rchitect is G rover Dim ond Associ ates, St. Paul. G eneral co n tractor is M agney Con stru ctio n Company, P lym outh Village. Mobile A m ericana is a diversified, publicly held com pany serving the m o bile hom e and lending industries. It deals in the financing, in su rin g and sale of mobile hom es and th e develop m ent of mobile hom e parks. Mobile A m ericana ow ns and operates one m o bile hom e p ark in M innesota and th ree in Florida. * * * vv imam n. reters, cnairm an, ivimne sota State Bank, St. Paul, has an nounced the election of James E. Edhind to the board, Mr. E dlund rep r e s e n t s s e c o n d VA generation ow ner ship and opera tion of th e E d l u n d In surance Agency in Rose ville, w hich is the largest S t a t e F a r m In surance A gency in M inne V J. E, E D L U N D sota, and has re peatedly rated as one of th e top 50 in the U nited States. I t w as founded by Mr. E d lu n d ’s fa th e r in 1929. Mr. E dlund has long been associated w ith the bank, and w as originally a m em ber of the b a n k ’s advisory council. * =1« * George H. Dixon, presid en t of th e F irst N ational B ank of M inneapolis, has been elected a director of Fingerh u t Corporation. * H* * First National Bank of St. Paul, w hich announced about tw o m onths ago th a t it w as allocating $10 m illion w * OI If you’re looking for buyers in Singapore, start w ith our man-on-the-spot. A large American chemical firm did. Our m an not only provided an extensive list of local buyers for their Singapore subsidiary — he also found office space for this new operation. And for a m ajo r Swedish steel firm he obtained an unusual h ard currency loan in Swiss Francs at a favorable interest rate. Bank of Am erica’s men-on-thespot are local enough to attend to all the details personally. Yet w e’re large enough to provide m ulti-currency financing for m ulti national corporations. Or faster collections and instant rem ittances from any p art of the globe. Bank of America takes care of your hom etown problem s, too. We can generate custom -tailored M anagement Inform ation Reports from your payroll and payables data. Or invest your corporate cash surpluses for greater profit. W hatever you’re looking for, Bank of America’s menon-the-spot are ready to deliver. In Singapore or Sacram ento. Or anywhere. G3 Bank of America Man-on-the-spot service. Worldwide. N o r t h w e s t e r n B a n ke r, A p r il, 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 Minnesota News H. Le V A N D E R TWO TOP n atio n al vice presid en ts of the F u tu re F arm ers of A m erica v isited F irs t N atio n al B ank of M inneapolis recen tly — and were w arm ly welcomed by two young correspondent bankers. P ic tu re d le ft to rig h t are: A ssistan t Vice P resid en t R obert J, Gruman; Jam es Beard of Beggs, Oklahoma, and George A llen of E aston, New Y ork, and Correspondent B anking Officer A llen G. H ighum . The two F F A ers were on a 9-week tour to 29 cities in 16 states. T heir organization now boasts some 430,000 members in 8,300 chapters. for anti-pollution control capital in v estm en t in a seven-county area s u r roundin g th e Tw in Cities, has found a ready m ark et for th e money. So far com panies, m ost of them in St. Paul, have borrow ed about $195,000 to purchase d u st collectors, recycling equipm ent, and sim ilar devices, b u t m any m ore applications are being processed. A pplications and inquiries have poured in from all over the Up p er M idw est and even from F lorida, Georgia, New Jersey, and California. In addition, th e M innesota B ankers A ssociation has said th a t special loan rates and oth er inducem ents are being discussed by m em ber banks. terim construction loans for both sin gle-fam ily and m ulti-fam ily housing had been closed, w ere in process, or had been com m itted. * * * B. V/. A G E E M rs. A rloina Stearns, a vice p resi dent w ith Dain, K alm an & Quail, Inc., M inneapolis-based inv estm en t banking firm, w as featured recently in an a rti cle in th e M inneapolis Star, com plete w ith color photo. The article traced Mrs. S tearn s’ rise from a novice in the brokerage profes sion to a vice presidency in th e short span of eight years. E ig h t y ears ago she m ade a few in q uiries about m utual stocks, took a course and tests to qual ify as a broker, and opened up an office in h er hom etow n of M arshall. T hen th ree and one-half y ears ago she m oved to M inneapolis and joined DKQ. Today, one of h er special clien teles is m ajor league baseball players —she advises about 70 of them . The board of directors of the A m eri can N ational B ank and T ru st Com p any has elected th ree new directors, according to John F. Nash, president. T hey are Ben W. Agee, Richard L. Hutchinson Capital Increase G u n d erson a n d The Citizens B ank and T ru st of Harold Le Van- H utchinson received approval from der. the B anking Division of the D epart Mr. Le V ander m ent of Commerce au th o rizin g an in is p ast governor crease in the am ount of capital stock of the state of fronvS 100,000 to $500,000 by stock divi * * * Minnesota a n d dends. Northwest Bancorporation, w h i c h has re tu rn e d to pledged $30 m illion last M arch for lowp riv ate law prac and middle-income housing over a pe tice in South St. Clarissa Capital Doubled R. L. G U N D E R S O N The f a r m e r s State B ank of Clarissa riod of 18 m onths, actually exceeded Paul. Mr. Agee di th a t figure w ith in th re e m onths. By rects activities for N o rth w estern Bell recently received approval authorizing selling m ortgage loans already made, T elephone Com pany in m etropolitan the am ount of capital stock from $50,the B ancorporation has freed addition St. P au l and the n o rth e rn half of M in 000 to $100,000 by stock dividend. al funds for fu rth e r loans of th e sam e nesota. Mr. G underson is vice p resi sort. den t of the consum er packages division Open House at Hastings By the end of last Septem ber alm ost for H o erner W aldorf Company, St. The F irst N ational Bank in H ast $40 m illion in m ortgage loans and in- Paul. ings recently held an open house on the occasion of m ajor changes and re m odeling in the bank building. A trip to Las Vegas for two, a color televi Underwriters and Distributors sion, and an outdoor set and chairs of Corporate and w ere am ong th e m any prizes given Municipal Securities aw ay du rin g the event w hich also fea tu red refresh m en ts and balloons for children. S in c e 1919 A L L IS O N -W IL L I A M S C O M P A N Y N O R T H W E S T E R N B A N K B U ILD IN G Phone; 333-3475 (Area Code 612) N o r t h w e s t e r n Ba n ker. A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MINNEAPOLIS, MINNESOTA 55402 Murdock Bank Ups Capital The F irs t State B ank of M urdock recently received approval of the De p artm en t of Commerce, B anking Di vision, au thorizing increasing the am ount of capital stock from $35,000 to $100,000 by sale of new stock and settin g the highest am ount of in d eb t edness at 30 tim es the capital and ac tu al surplus. k 59 y -y -< ...an international banker in your own backyard. > Northwestern can handle all your international banking needs. And we can handle them better because we’re closer to you. Because of Northwestern’s foreign correspon dent bank network, we can . . . save you days in clearing checks on foreign . . . make trade inquiries in every country . . . handle credit inquiries, export and import loans, Letters of Credit, international payments, and collections. Interested in international banking? Pick up the phone and call FLOYD STEWART today at (612) 372-8394. It’s a short-distance call. *- ^ u S jjjJ T v g EPF B h By 0 E \\ I Floyd Stewart • 372-8394 c n A A jw d /tíb h m m j ! May \vc(hdp)you today? u X, Correspondent Banking Division Northwestern National Bank of Minneapolis ■A M em ber Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n k e r, A p r i l , 1971 GO Minnesota News Ëtntfs W o rld H m n 'd .Monso N A R EC EN T h u n tin g trip to Alaska, Bruce Hodson, executive vice p resid en t of the Blackpipe State B ank a t M artin bagged a h u n te r’s dream — a 2,000 pound w orld record moose. A ccom panying Mr. H odson on the h u n t w ere F re d M ueller, his h u n t ing com panion, and two guides from M artin. T hey w ere D enny Thom pson and Bill Sims of th e Susitna Lodge and F ly in g Service. O the E xecutive Credit Card Plan, is available th ro u g h an agreem ent w ith A m erican E xpress Company, New York. P ersons qualifying for th e service at F irs t A m erican w ill receive the E x ecutive C redit Card, w hich carries a m inim um $2,000 line-of-credit and all in tern atio n al privileges of the regular A m erican E xpress Card, Mr. Griffith said. The two h u n te rs tossed a coin to see w hich one w ould be given the op p o rtu n ity to tackle th e anim al. Mr. H odson won th e toss and d id n ’t m iss as he b ro u g h t th e w orld record down w ith tw o shots from a .30-06 R em ing ton. Officially m easured at Jo n as B ro th ers in A nchorage, th e bull an tlers to taled 264 points on the Boon and Crock ett scale and m easured 79% inches in w idth from tip-to-tip. In addition to the w idth span, Mr. H odson’s bag m easured 49 inches in length by 19% inches in w id th over each palm , n u m bered 17 and 18 points respectively on each rack and m easured 8% inches around th e circum ference of th e beam. Before th e W orld Record could be declared official, a 60-day w aitin g period to allow for sh rin k ag e w as necessary. The moose m easured 13 points hig h er th an th e form er w orld record 251 points held by B ert K leinberger of Jonas B ro th ers of Seattle. H is record bag w as shot at M ount S usitna in 1961 and m easured 77% inches from tip-totip. The record moose w as shot approxi m ately 50 m iles n o rth of L ake Illiamma, 200 m iles southw est of A nchorage, Alaska. Executive Credit Card F irst A m erican N ational B ank of D uluth has announced new world-wide credit card service featu rin g a $2,000 line-of-credit for card holders. L eonard E. Griffith, F irs t A m erican vice president, said th e service, called N o r t h w e s t e r n Ba n ker, A p r il, 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Goodhue State Increase The Goodhue State Bank, Goodhue, has increased th e am ount of capital stock from $75,000 to $100,000 by stock dividend, it w as announced by the State of M innesota B anking Division of th e D epartm ent of Commerce. Name Four New Directors The B anking Division of the D epart m en t of Commerce for M innesota re cently au thorized an increase in the am ount of capital stock of th e N o rth w estern State B ank of Slayton, Slayton, from $150,000 to $200,000 by stock divi dend. F o u r new directors have been elect ed at the F irs t N ational B ank, P ipe stone, according to W. S. M organ, president. Oliver L arson w as appointed to fill the vacancy created by th e resignation of A. R. Stillwell, and W illard L. W il son w as nam ed to fill the vacancy caused by the resignation of C. J. W iersm a, vice president. Added to th e board w ere R obert S. M organ and S tephen T. Morgan. Mr. Stillw ell w as active in the bank for 51 years (1913-64) and th en served as chairm an of the board u n til this year. Mr. W iersm a w as em ployed by the bank in 1941 and except for nearly four y ears in the arm ed forces, served as an active officer until July, 1970, w hen he resigned to en ter area devel opm ent program s and to join th e staff of C ountryside G eneral Inc. He is on the national board of th e Sm all B usi ness A dm inistration and has been ac tive in com m unity developm ent for m any years. Mr. L arson is a cattle ran ch er w ho lives near F landreau, S. D. Mr. W ilson is a w ell-know n P ip e stone clothing m erchant. R obert S. M organ w as em ployed for seven y ears by th e U nion State Bank, B row ns Valley, and joined the F irs t of Pipestone in July, 1966. Stephen T. Morgan, em ployed by the F irs t N ational Bank, B eresford, S. D., for six years, moved to th e F irst of Pipestone in Septem ber, 1969. Roy S. B enthin w as nam ed chair m an of the board of directors to re place Mr. Stillwell. New Look in Plainview Clark Smith Named Director The People’s State B ank in Plainview is c u rren tly u n d ertak in g an ex tensive rem odeling project expected to be com pleted betw een A pril 15 and May 1. T he bank is expanding into the adjacent building form erly occu pied by th e post office. The rem odeled facility w ill featu re a w alk-up w indow for added service, new teller stations and a new in terio r decor w ith com plete carpeting. It w as also announced th a t th e ban k received authorization increasing th e am ount of capital stock C lark A. Sm ith has been elected as an additional m em ber of th e board of directors of the P rin ceto n S tate Bank, according to Roger W. B arton, chair m an of th e board. He is presid en t of Sm ith System M anufacturing Compa ny in P rinecton. Also elected w ere C. E. Paulson, executive vice president, and W esley G eurkink as a ssistan t vice president and cashier. The board of directors also authorized increasing the su rp lu s account by $100,000 to $400,000. Peterson Group Head Bruce H odson poses w ith moose an tlers th a t set a new w orld’s record fo r size. from $75,000 to $100,000 by stock divi dend. Donald R. Peterson, president of the F irs t State B ank of M urdock, w as elected p resid en t of the Swift C ounty B ankers A ssociation at a recent m eet ing. Joel Lund, cashier of the N o rth w estern State B ank of A ppleton, w as elected vice president, and Thom as C. Connolly, p resident of the State B ank of D anvers, w as elected secretarytre a su re r. The association is m ade up of all seven banks in Sw ift County. L eighton Johnson of the Sw ift County B ank in Benson is the retirin g p resi dent. George William Patterson Services for George W illiam P a tte r son, form er state senator and banker, w ere held in B urt. Mr. P atterso n died at th e age of 83. He served as director of th e B u rt Savings B ank since its in ception and w as also h onorary vice p resid en t of the bank. He w as also active in local, state and national poli tics his entire life. He served in the state house of rep resen tativ es from 1923-1929 and also served as a m em ber of the state appeal board of the selec tive service system from 1939 to 1947. Increase Stock 61 12:30 The H onorable R ichard Kneip, governor of South Dakota. 2:30 Conference A djournm ent. ^M embers and graduates of th e Mid w est In stitu te of B anking w ill have th e ir 4th A nnual B reafast the m orn ing of April 14 at 8:00 a.m. in the din ing room of th e W estern Inn, Cham berlain. Cost of th e b reak fast is $2 and is not included in the reg istratio n fee. South Dakota NEW S I, L. STEELE President Huron NEIL MILNER Secretary Huron \tf Conference To Clinniberlnin Bonde Elected to Board Ted Bonde has recently been elected to the board of directors of th e South ern H ills Bank, Edgm ont, according to a recent announcem ent by E. A. E ric k son, president. In May, 1959, Mr. Bonde purchased the F all R iver Gas, Inc., and has been p resident of th e com pany since th a t tim e. Named Assistant Cashier > Tuesday, April 13 A.M. 8:30 f * > ^ u ^ ell W ahl, Clark, S. D., 1970 final ist for “O utstanding Young F a rm e r of South D akota.” “W eed E rad icatio n ”—Ben Nel son, State Supervisor, State W eed Control, H uron. “L easing F arm Eciuipm ent” — Dan Sw itters, Jo h n Deere deal er, Cedar Rapids, Iowa. 4:30 A djournm ent. 5:30-6:30 Social H our—W estern Inn. 7:00 B anquet—Catholic Church Hall. E n te rta in m e n t—Tea Bags. I. E. Solberg, m anaging director, N orth D akota M otor C arriers Association, B ism arck, N. D. H E 1971 A gricu ltu re C onference ^ sponsored by th e South D akota B ankers A ssociation w ill be held A pril 13-14 a t th e Lobby State T heater, C ham berlain. The agenda for th a t conference is as follows: T Call to O rder—B u rd ette Solum, chairm an, SDBA A g ricu ltu ral C o m m i t t e e ; v i c e president, F irs t N ational B ank, W atertow n. W elcom e—L eland Steele, SDBA president; executive vice p resi dent, F a rm e rs & M erchants B ank, H uron. “A griculture T oday” — M arvin A.M. 9:30 Campbell, p resident, M innesota B an k ers Association; president, The F irs t N ational Bank, Crookston, Minn. “F arm in g Comes to C om puters” —Jo h n W iese, vice president, COMFARM, Brookings. “F i n a n c i n g A g ricu ltu re” — A rchie G ubbrud, F a rm e rs Hom e A d m inistration, H uron; Gale Cam eron, F ed eral In term ed iate C redit B ank of Omaha, Mitchell; Gene Reed, F ederal I,an d B ank of Omaha, P ierre. 11:45 A djo u rn m en t for lunch. Noon 12:00 L uncheon — Catholic C hurch Hall. P.M. 2:00 R econvene—State T heater. “W e Believe in th e F u tu re ”— R obert W everstad, 1970 O ut stan d in g Young F arm er, Yank- P. M. 12:00 ton; K en Mason, 1969 O utstand ing Young F arm er, P latte; Low- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wednesday, April 14 Call to O rder—G ary Olson, as sistan t vice p resid en t and assist an t m anager, N o rth w estern N a tional Bank, H uron. “F a rm M anagem ent of the F u tu re ” — R obert M oorman, Jr., g eneral credit m anager, Elanco P roducts Company, Indianapo lis, Ind. “M anaging a College Teaching P rogram for South D akotans”— Dr. D uane Acker, dean, director, experim ent station, College of A griculture and Biological Sci ences, South D akota State Uni versity, Brookings. “How to Get F u n d s for A gricul tu re L ending T hrough Corre spondent B anking”—Carl Coop er, senior vice president, N a tional B ank of Commerce, Pine Bluff, Ark. A djournm ent for L unch — L uncheon Catholic C hurch Hall. T hom as O. Thom pson nam ed assistan t cashier of ican State B ank in Y ankton. ren tly in charge of the Plaza facility of th e bank. has been the A m er He is cur B roadw ay Fish Named Vice President D irectors of the U nited N ational B ank of V erm illion r e c e n t l y an nounced th a t K enneth J. F ish has been prom oted to vice president and m anaging officer of U nited N ational Bank, B randon branch. Donald Ockenga, form erly in insurance, is the new a ssistan t vice president. Peterson to Cashier A rden P eterso n has been nam ed cashier of th e F irs t P o tte r C ounty Bank, G ettysburg. He w as form erly assistan t cashier and has been affili ated w ith the bank since 1969. A graduate of N o rth ern State Col lege, Mr. P eterson has had previous experience w ith th e F irs t N ational B ank of Miller, th e A berdeen N ational Bank, and th e F irs t M innehaha N a tional B ank of M inneapolis. Open House at Elkton The Corn E xchange B ank at E lkton, S. D., hosted a public open house on M arch 23. G uests view ed th e b a n k ’s new ly rem odeled and enlarged facili ties, had refresh m en ts and registered for hourly prizes. The bank w as established on M arch 21, 1926, m aking this its 45th year. Now m aking up th e official staff are R. F. Petschow , president; H. E. Hegerfeld, cashier; Lyle H eesch and P a tricia Petschow , assistan t cashiers, and Lavon Culhane, teller. D irectors are R. F. Petschow , H. E. H egerfeld, and Roy K ram er of E lkton; Ed M iller N o r t h w e s t e r n B a n k e r, A p r il, 1971 62 South Dakota of W ard, S. D., and Louis L ange of Pipestone, Minn. In rem odeling th e b ank has doubled its w ork space to 3,000 square feet, adding th re e p riv ate offices, d irecto rs’ conference room, bookkeeping room, supply room, tw o coupon room s and enlarged its lobby. F u rn itu re and fix tu res are d ark w alnut. D ecorations are in shades of green w ith green and brow n carpeting. The exterio r of the building has been com pletely redone in tan and w hite. Named Cashier at Okaton M arie Tedrow , form erly assistan t cashier of the Okaton State B ank at Okaton, has been prom oted to cashier, according to Mrs. Hazel A. Drew, p res ident. Mrs. Tedrow has 18 years of b an k in g experience. Promoted at Aberdeen Mrs. Jean n e G rover w as advanced from tru s t secretary to assistan t tru st officer in action tak en by th e board of d irectors at its M arch m eeting, it w as announced by C. P. Moore, president of th e F irs t N ational B ank of A ber deen. Mrs. G rover joined the bank in April, 1965, and w as prom oted to tru s t secretary in Jan u ary , 1969. Mrs. G rover is c u rre n tly president of the A berdeen B usiness and P ro fes sional W omen, tre a su re r of P.E.O., and a m em ber of N ational A ssociation of B ank W omen. She has been active in B ethlehem L u th e ra n C hurch and teaches Sunday School there. Mrs. G rover has com pleted educa tional courses in th e A m erican In sti tu te of Banking, and is a m em ber of B ank A dm inistration In stitu te. She has attended the N ational T ru st School at N orth w estern U niversity, E v an ston, 111., com pleting th e course in T ru st A dm inistration. Voiantvers Meet V O L U N T E E R sta te chairm en from South JIM M cG IL L s. w . E V A N S Looking Forward To Seeing Our Nebraska Banker Friends At The 74th Annual Nebraska Convention in Omaha - May 2 - 4 N o r t h w e s t e r n B a n ke r, A p r i l , 197] https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ak o ta and N o rth D ak o ta were among those who atte n d e d the N atio n al C onfer ence of S ta te C hairm en fo r U.S. Savings Bonds in W ashington, D.C. recently. The sta te chairm en m eet an nually w ith leading T reasury D ep artm en t officials to discuss th e program and coordinate efforts of the thousands of volunteers across the n a tion. P ic tu re d above, le ft to rig h t, are: A n ker M. Eriksm oen, pres., D akota N atl., F arg o ; P aul A. V olcker, U nder S ecretary of th e T reasury fo r M onetary A ffairs, and M artin J. Colton, exec, v.p., N atl. B ank of South D akota, Sioux Falls. Bank of North Dakota Report The B ank of N orth D akota d istrib uted its 1970 an n u al re p o rt last m onth. This is the first tim e in th e b an k ’s 51-year h isto ry th a t a published re p o rt has been distributed. Copies of it w ere sent to all m em bers of the legislature, state dep artm en ts and agencies, county and city auditors, school su p erintendents, libraries, offi cial county new spapers, banks, sav ings and loan associations, credit u n ions, h igher education institutions, and vocational schools in the state. The rep o rt stated th a t d uring 1970 th e bank reached new highs in re sources, deposits, loans, and earnings. R esources reached over $161 m illion in M arch of 1970, m aking it the largest financial in stitu tio n betw een M inneap olis, Minn., and Spokane, W ash. It w as also announced th a t Jo h n A. Dewald has joined th e loan d ep art m ent of the b ank of N orth D akota as a loan in terv iew er and trainee. 63 accounts w ere listed at $63,362,168. The 42 national banks in N orth Da kota had total deposits of $741,869,101, m aking a total deposit figure for n a tional and state banks of $1,549,831,115. ¥ N o rth D a k o ta NEW S R. V. WELLS President Robinson W. J. DANER Secretary Bismarck Consumer Credit Conference A I M . 1 1*10111ni ni/ Conference Follow ing is the schedule for the NDBA A nnual W ashington L egisla tive and A dm inistrative Conference, A pril 27-30: „ ¥ Wednesday, April 28 A.M. **9:30-11:30 V isit A.B.A. Office for G overnm ent R elations Briefing. B alance of Day — Calling on Congressional Delegation and free for p resen tatio n s by other agencies. P.M. 6:00 R eception — M adison Hotel. 7:00 D inner—M adison Hotel, Dolly M adison Room. Thursday, April 29 A.M. **10:00-11:00 V isit w ith H onorable C haris E. W alker, U nder Secre ta ry of the T reasury. **11:00-12:00 V isit w ith H onorable W illiam B. Camp, C om ptroller of th e C urrency. P.M. **12:30 Luncheon-C onference at FDIC. B alance of Day—F ree for call ing on Congressional Delegation or p resen tatio n s by oth er agen cies. Friday, April 30 P.M. 12:45 Luncheon-C onference at F e d e r al R eserve Board. B alance of Day—F ree for call ing on Congressional Delegation > or p resen tatio n s by o th er agen cies. **Jo in tly w ith South Dakota and Montan a delegations. Near $50 Million Increase 4 A recen t financial re p o rt subm itted by G. W. E llw ein, Com m issioner of B anking and F in an cial In stitu tio n s, B ism arck, indicates th a t as of December 31, 1970, total deposits for state banking associations and in stitu tio n s w ere $685,811,449 as com pared to $636,145,426 for 1969, m ark in g a $49,666,023 increase. in F ed eral funds sold am ounted to $1,667,364 and o ther loans reached $367,237,016. Total assets for all state ban k in g associations and institu tio n s w ere $768,033,757 w hile to tal capital The in stallm ent loan com m ittee of the N orth D akota B ankers A ssociation has scheduled th e 1971 Consum er Cred it C onference (form erly In stallm en t Loan Conference) for W illiston, N. D., on T hursday evening and F riday, A pril 22-23, 1971. The conference w ill sta rt T hu rsd ay evening w ith a social hour and sm orgasbord. The F rid ay busi ness m eeting will include speakers and discussions of in stallm en t lending problem s and a review and discussion of the U niform C onsum er Credit Code, if th a t law is passed. M o n ta n a NEW S E. P. FRIZELLE President R. C . WALLACE Secretary Butte Helena New Livingston Officers H. J. N elson has been elected vice p resid en t and director of the F irs t Se cu rity State Bank, Livingston, accord ing to a recent announcem ent by Claude R. E rickson, president. Mr. N elson w as form erly p resident of the R ichland N ational B ank of Sidney. D. W. H utchinson w as also nam ed director of m ark etin g a t Security T ru st and Savings Bank, Billings, w as recently the recipient of the highest honors the Billings Jaycees can bestow as he w as cited for distinguished serv ice in his m any activities for the com m unity. Mr. Barz, am ong his other activities, is an advisor for Ju n io r A chievem ent and is holder of both state and county posts for th e H e a rt Association. Named Sales Director H. J. N E L S O N D. W . H U T C H I N S O N a ssistan t vice president. He form erly w as a ssistan t vice p resident and in stallm en t loan m anager of the F irst N ational B ank of O watonna, Minn. Mr. N elson and Mr. H utchinson w ill replace Don W. Liebsch, vice p resi dent, and Dan K. E dw ards, assistan t vice president. Mr. Liebsch w ill be p resid en t of W estern State B ank of B ozem an and Mr. E dw ards w ill be vice p resid en t of the sam e bank. Daniel Barz Honored D aniel J. Barz, a ssistan t cashier and Bruce Thom as, president of CMI In v estm en t C orporation (AM EX), Madi son, Wis., has announced the appoint m ent of Jo h n P. G ulickson to be re gional director of sales in the W ashing ton, n o rth e rn Idaho and w estern Mon tan a areas for C ontinental M ortgage Insu ran ce and Com m ercial M ortgage Insurance, both subsidiaries of CMI In v estm en t C orporation. C ontinental M ortgage Insu ran ce is the N ation’s second larg est private in su re r of m o rt gage loans. Com m ercial M ortgage In surance insures lenders against de faults in p aym ent of loans secured by m ortgages on a wide range of com m er cial and in d u strial property. Mr. Gulickson, a g raduate of the U ni versity of W ashington, w as form erly engaged in m ortgage banking in W ash ington w ith Sherw ood and R oberts of W alla W alla, and McKoin and Noyd of W enatchee. N o r t h w e s t e r n B a n k e r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 64 Colorado New s C. GALE SELLENS Wheat Ridge President Colorado Bankers Assn. Colorado National Promotion for the p u rchase of a m ajor w ork of R ichard L. B erg has been prom oted art. The new addition increases the func to vice president, livestock loans, of the Colorado N ational Bank, D enver. tional space in the bank from 7,016 M elvin J. Rob square feet to 12,896 square feet on erts, ch airm an of both levels of th e tw o-story building. th e b o a r d and T hree additional drive-in w indow s chief executive of have been installed, bringing the total ficer of the bank, to six. announced the ap pointm ent. I o Executive Committee Mr. B erg m oves W illiam H. K istler, p resident of the from assistant K istler Company, w as nam ed to the vice president, executive com m ittee of The F irs t N a livestock loans. A tional B ank of D enver at the b a n k ’s grad u ate of Colo an n u al m eeting of stockholders. rado State U n iv er All oth er officers and board m em bers sity, he joined th e b an k in 1958 and of th e b an k w ere re-elected, P resid en t w as nam ed assista n t vice p resid en t in E ugene H. Adams announced. 1964. A m em ber of th e A m erican In At the board of d irecto rs’ m eeting stitu te of B anking, Mr. Berg serves on th e reg u lar q u a rte rly dividend of 79 the D enver 4-H A dvisory Council. cents per share w as declared, payable M arch 29, to shareholders of record M arch 2, 1971. Arnold to Board E ugene M. H u ltm an, p resid en t of the Colorado N ational Bank, has an Tennis Invitational nounced the election of Leslie B. A r The U nited B ank T ennis In v itatio n nold to the board of d irectors of the al, featu rin g the stro n g est field ever to bank. Mr. A rnold is th e form er p resi appear in the Rocky M ountain area, dent and chairm an of th e board of will be A pril 21-25 in Denver. M ajestic Savings and Loan Associa In an nouncing the tournam ent, tion. U nited B ank of D enver P resid en t John In addition, Paul Howell, Jr., w as H ersch n er said th e form at will follow nam ed vice p resid en t of the bank. Mr. th a t of last y e a r’s highly successful Howell is the form er p resid en t and D enver T ennis Invitational. general m anager of H ow ell’s, Inc., the P lay w ill be at the U niversity of Lakewood-based d e p a r t m e n t store D enver arena, w hich will provide a chain. m uch g re ater seating capacity and, therefore, low er tick et prices. Celebrate Expansion Mr. H erschner did not release the The F irs t N ational Bank of B ear Val- nam es of the eight p articip atin g play ley, 3100 South Sheridan Boulevard, ers, b u t said all w ill be w orld-ranked Denver, celebrated th e com pletion of players from the contract pro circuit. its $300,000 expansion and rem odeling He also indicated the prize m oney will w ith an open house recently, it w as be th e g reatest offered for a Rocky announced by R ichard C. M eckley, M ountain tennis event. president. R ay B enton, director of p ast Den V isitors received a guided to u r of v er Invitationals, also w ill be to u rn a the bank, free refresh m en ts and th e m en t director for the U nited B ank op p o rtu n ity to reg ister in a “Money event. T ree” contest. Mr. H e rsh n er also announced th a t Mr. Meckley also announced th a t in a percentage of the gross receipts w ill lieu of m ajor giveaw ays and p rem i be given th e Y outh T ennis F oundation um s to custom ers, th e b ank will do of Colorado for th e establishm ent of a nate $1,000 to th e new B ear Valley U nited B ank chapter of the N ational B ranch L ibrary, 5171 W est D artm outh, Y outh T ennis League. N o r t h w e s t e r n B a n k e r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase Capital < Shareholders of the Colorado N ation al Bank, Denver, have voted to in- ' crease the capital account of the bank to $17.5 m illion. The increase is the * re su lt of a stock dividend of 75,000 shares, having a p a rt value of $1,875,000, b ringing th e total of sh ares out- ^ standing to 300,000 w ith a p ar value of $7.5 million, and a tra n sfe r of $625,000 from undivided profits to surplus, increasing the su rp lu s account to $10 ^ million. Herbst Named to Board ^ F red R. H itchcock, presid en t of the South Colorado N ational Bank, Den ver, has announced the election of Carl A. H erbst, Jr., to the board of directors V of the bank. He is the presid en t of H erbst P lum bing and H eating, Inc. Alameda Bank Promotions T hree prom otions have been an nounced at th e A lam eda N ational Bank, Denver. Alvin A. Sm ith has been prom oted from cashier to cashier and vice president, M arvin J. C urry from a ssistan t cashier to a ssistan t vice president, and Jam es H. Sm url to as- * sistan t cashier. Bank Marketing Course ^ The B ank M arketing A ssociation w ill conduct a Bank M arketing Course at the U niversity of Colorado, Boulder, Ju n e 6-11. The cu rriculum of the course is equally ap p ro p riate for p e r sonnel of sm all banks as well as those from large departm entalized in stitu tions. The course w ill include 30 hours of classroom in stru ctio n and each stu- A dent is req uired to take it in its en tirety. 1 DIG Approval The B ank of W oodmoore, Woodmoore, has received recen t approval from the FDIC. The bank has to tal v capital accounts of $293,750. Security Pacific Declares 20 Per Cent Stock Dividend 4 Security Pacific N ational B ank stock holders overw helm ingly approved a 20 per cent stock dividend at the b a n k ’s 1 ann u al shareholders m eeting in Los Angeles last m onth. Carl E. H artnack, p resident of the bank, said the stock dividend w ill be accom panied by a tra n sfe r of $34,052,550 to the capital am ount and $15,947,450 to the su rplus account from undi- ^ vided profits. A fter th e stock dividend, Security Pacific B an k ’s capital stock w ill be j. $204,315,300, and su rp lu s will be $205,684,700. Total shares authorized and outstanding w ill increase from 17.026,275 to 20,431,530. *- Like to have $5(M)00 or more in investable funds available sooner ? There'saway Very basic. Use the transit services of The First National Bank of Denver. Because The First’s correspondent bankers know banking, they know your correspondent banking needs. That’s why we maintain services of sorting and sending cash letters from 7:30 a.m. until midnight every weekday. And we’re one of very few banks processing cash letters on weekends. We can tell you at any time how much you have in float and how much in investable funds. This rapid service provides you with a sizable additional amount in investable funds. The First is able to offer the finest specialized correspondent banking services because The First is w h e re th e A b a n te rs a re / TheFirstNationalBankofDenver 303-893-221 I • T.A . Box 5808 * Denver, Colorado 80217 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n Banker, A p r i l , 1971 66 W y o m in g N e w s F I L I I BUCHENROTH, JR„ Jackson President Wyoming Bankers Assn. Name New Directors Two new d irectors have been nam ed at the F irs t N ational B ank of Greybull. T hey are Jerro ld R. H enderson, p res ident of the W yom ing Gas Com pany in Basin, and Jo h n M. A nderson, Shell rancher. H. K. H arris, president, announced th a t stockholders have approved the sale of an additional $100,000 in stock. M yrtle A. P ru g h w as elected auditor. Bryans to Board R obert E. B ryans, p resid en t of the F irs t N ational B ank of Casper, w as re cently appointed to the board of public utilities for a six-year term . The an nouncem ent cam e from Casper M ayor Tom Kidd. Remodeling Plans The F irs t N ational B ank of Buffalo, the fifth oldest b ank in the state, has announced plans for a m ajor rem odel ing and enlarging program w hich is to be conducted th is sum m er. R obert H olt and R obert M cBride, vice presidents a t th e bank, said th e presen t plans call for co nstruction of a new fro n t on th e building w hich will reach to the sidew alk in fro n t of th e building, and an addition to th e n o rth of the bank building w hich will contain priv ate offices and m eeting rooms. The rem odeling and reco n stru ctio n is to be handled en tirely by B ank B uilding Corporation, St. Louis. The p resen t plans call for a p ro gram w hich w ill increase the floor space of th e bank by 70 p er cent. The new fro n t of th e bank w ill be m ade of stone and redw ood and have large windows. Riverton Open House The F irs t N ational B ank of R iverton show ed its new ly-rem odeled building to the public at an open house recen t ly. The entensive construction, w hich m ore than doubled th e form er floor space, has been in progress for n early a year. A ccording to H arm on W att, president, the new facilties will pro vide an en tirely new b ank for R iv er ton. A rchitect George T. Nowak, wellknow n for his b an k designs th ro u g h N o r t h w e s t e r n Ba n ker, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis out th e w est, chose “The Golden W est” as his them e for th e innovative stru c tu re. B eneath the p resen t stru c tu re is p a rt of the basem ent of the 1908 R iverton State Bank, w hich called it self the “P ioneer B ank of the R eserva tion.” U n d erneath the last m ajor fa cade w as a 1921-vintage brick stru c tu re th a t w as one of W yom ing’s m ost im posing buildings for m any years. Mr. N ow ak created, from the conglom erate of existing stru c tu re s and added buildings, a uniform , im posing arch i tecture. The en tire facing from the 1960 rem odeling w as rem oved, the fac ing of th e recently-acquired adjoining Ben F ra n k lin building w as covered, and replaced w ith a continuous m ar quee on th e two m ain sides of the building. The m arquee is supported by arches and sim ulated projecting beam s in colors of brow n and bronze. The architect m astered th e fu rth e r problem of designing and engineering a stru c tu re th a t w ould allow the bank to rem ain open for business d u ring construction. 4-H Clubs Honor Banks The W yom ing B ankers A ssociation has received recognition from the 4-H L eaders Conference for the support given 4-H Clubs by W yom ing bankers for a g reat m any years. F elix Buchenroth, Jr., presid en t of the W yom ing B ankers Association, w as presented the recognition plaque recently by J. M. Nicholls, state 4-H Club leader. Hold Credit Conference The 7th A nnual W yom ing B ankers C redit Conference w as held recently in Casper. Speaking to the particip an ts of the conference w as Thom as A tkin son, senior vice p resid en t of C arter H. Golembe Associates, w ho w as called upon at the last m inute to replace Mr. Golembe as speaker. Mr. Golembe w as called back to W ashington, D. C., at th e last m inute for a conference. Mr. A tkinson review ed legislative pro posals from the n atio n ’s capitol, and th e ir im pact on the b anking business. Name Kasun C harles E. K asun has been nam ed M aster C harge P lan m anager for the C heyenne N ational Bank, according to an announcem ent by A. H. T rautw ein, president of the local financial in stitu tion. Mr. K asun is the form er m ark et re search supervisor for F irs t W isconsin N ational B ank in Milwaukee. Big Creek Farms Sold The Gates R ubber Com pany an nounced recently the sale of its 10,400acre Big Creek F arm s Com pany sub sidiary to a group headed by A. H. T rautw ein, presid en t of the Cheyenne N ational Bank, and V erne R. Woods of Eaton, Colo. The new ow ners assum ed control of th e farm ing and cattle feeding opera tion 130 miles east of Denver. The Big Creek F arm s Compay w as set up several y ears ago as an experim ent by Gates in m ass production m ethods for farm crops. In addition to the land, the new ow n ers bought all th e farm equipm ent, livestock, a feedlot w ith a 4,000-head capacity, office and shop facilities and nine m odern houses and mobile homes for em ployee housing. W illiam E. Phelps, m anager of the Gates ag ricu ltu ral in tersts, said the com pany w ill continue its cattle feed ing operations in W yom ing and w ill m ain tain its A-Bar-A dude ranch near E ncam pm ent, Wyo. Drops Fed Membership The Saratoga State B ank at Sara toga, Wyo., has w ith d raw n its m em bership from the F ederal R eserve Sys tem . Elected Director R obert (Bob) B runner, prom inent W yom ing autom otive dealer, has been elected to th e board of directors of the E ast Cheyenne N ational Bank, accord ing to an announcem ent by K. L. McShane, M.D., ch airm an of the board. New Teller System A m erican N ational Bank, R iverton, has begun construction of two new rem ote teller u n its w hich will speed the handling of drive-in ban king cus tom er traffic. The new system w ill increase the capacity for handling drive-in banking custom ers by 50 per cent. The system is being designed so th a t a th ird re m ote teller station can be added w ith out req u irin g new m ajor construction, according to Jo h n R. Benesch, p resi dent of A m erican N ational Bank. The drive-in rem ote teller u n its will be connected to th e m ain bank build ing w ith a new canopy w hich will m atch and tie to the p resen t canopy w hich adorns the A m erican N ational B ank building. W y o m in g — C o lo ra do N ew s 67 Two Promotions The prom otion of one officer and th e election of one new officer at H illtop N ational B ank, Casper, w as announced by T hom as M. H ockaday, president, follow ing the an n u al board m eeting. Mrs. Jean B row n w as advanced to a ssistan t vice p resid en t and Roger A. C urtis w as elected assistan t cashier. Mrs. B row n w as the first em ployee of the H illtop N ational B ank in Ju ly of 1964, as secretary to th e president. She w as nam ed a ssista n t cashier in 1967. She is m arried to W illiam (Bill) Brow n, vice p resid en t in charge of p e r sonnel at F irs t N ational Bank. Mr. C urtis w en t to H illtop N ational in N ovem ber of 1969. Florence Ralston Miss Florence R alston, 71, custom er service teller at th e F irs t N ational B ank of Casper for m any years, died recently in Bend, Ore. Miss R alston w as first em ployed by the W yom ing T ru st Com pany in 1921. M any of th e senior officers at the b ank received th e ir initial tra in in g in bookkeeping and teller w ork from Miss Raltson. City National to Build New Kansas City Headquarters The $380 m illion deposit City N a tional B ank & T ru st Com pany of K an sas City has announced it w ill con stru c t new q u a rte rs in th e h e a rt of the dow ntow n central core, one block from its p re se n t q u arters. The an nouncem ent w as m ade b y R. Crosby K em per, Jr., p resid en t and chief ex ecutive officer. T he site form erly housed the E m ery, Bird, T hayer retail d ep artm en t store w hich had been in K ansas City since 1890. The p ro p erty had been v acan t for m ore th a n tw o years. R ecent surveys have indicated th a t th is piece of p ro p erty w as one of the m ost strategic in th e over-all plans to revitalize the dow ntow n area of K ansas City. Mr. K em per originally purch ased the p ro p erty as a personal investm ent. The b a n k ’s board d eterm ined th a t th e site w as ap p ro p riate for use as a new h ead q u arters for th e b ank and u n a n i m ously approved th e b a n k ’s accepting th e assig n m en t of Mr. K em per’s rig h ts u n d er his pu rch ase agreem ent. A dditional p ro p erties im m ediately adjacent to th e existing building have been purchased, and p relim in ary plans indicate th a t th e b ank w ill have am ple p ro p erty to provide 50,000-60,000 square feet per floor in its new facility. On site park in g w ill be included and addi tional office ren tal space w ill be m ade available to o th er tenants; how ever, at this tim e it is not know n th e exact num ber of stories involved. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A R C H IT E C T U R A L R E N D E R IN G of P a r k C e n tra l fa c in g on A ra p ah o e S tre e t, w ith 15th S tr e e t a t le f t a n d 16th S tre e t a t rig h t. S k y lin e P a r k is in f r o n t of b u ild in g . Central Hunk In Exeitinq N E X C ITIN G addition to the Den v er skyscrape w ill appear w ith th e construction of P a rk C entral, a new com plex of th ree connecting tow er stru c tu re s located betw een 15th and 16th S treets and A rapahoe and L aw rence S treets on a full city block, and valued in excess of 20 m illion. P a rk C entral is a joint v en tu re of C entral B ank B uilding Corporation, D enver Rio G rande Industries, Inc., and Leavell E n terp rises, Inc. The P a rk C entral concept came about w ith th e Skyline U rban R enew al’s reco n struction of th e low er dow n tow n area. C onstruction is u n d er w ay w ith projected com pletion in late sum m er of 1972. P a rk C entral w ill be one of the larg est building com plexes in the Rocky M ountain Region. The com plex w ill be com prised of th ree connecting stru c tu re s (in excess of 610,000 square feet), p arks and plaza adjoining Sky line P ark. Only 60 p er cent of the land w ill be used for th e buildings; th e rem aining area w ill be landscaped p ark s and plazas. B eneath th e en tire block, th ree levels of park in g w ill pro vide space for 630 cars. T he th ree connecting tow ers, of v ary in g heights, will be set back 110 feet from A rapahoe Street. T his area will be landscaped w ith pathw ays m eandering along th ree blocks of Sky line P a rk —a streetscape of a v ariety of spaces—tru ly a people place. The 16story T ow er will rise 210 feet high along 15th Street. A portion of this space w ill be corporate h ead q u arters for Rio G rande In d u stries and its sub sidiaries. On 16th Street, the 11-story Tow er A HldJoins New w ill rise 146 feet high. Connecting these tw o tow ers w ill be the th ird tow er, seven stories rising 95 feet high on A rapahoe Street. The C entral B ank and T ru st Com pany w ill locate its new lobby in the C enter Tow er facing the park and the plaza. The bank, w hile continuing to use its presen t pro p erty via an over-the-street ped estrian w alk way, will also move m any of its m a jor functions into P a rk C entral as p a rt of its long-range expansion pro gram . The tow ers will be divided into office and retail space. On the second level of P a rk C entral, facing th e Rocky M ountains, is a pub lic plaza w ith sculpture com patible w ith the landscape and joined to a neighboring plaza by a street-spanning p ed estrian walk-over. The surface is of w arm tone granite, w hich is also carried up th e w alls of th e cores, th u s enhancing the plaza and m ain build ings. P ed estrian s w ill be able to stroll leisurely th ro u g h o u t th e multi-block area w ith o u t crossing at street level. The low er level, beneath the plaza, is at park-level w ith pleasant retail shops, restau ran ts, and other com m er cial establishm ents. The exterior of the stru c tu re s w ill be of d ark anodized alum inum and bronze glass cu rtain wall. The general contractor is C. H. L ea vell & Com pany of E l Paso, Tex., and the architect, M uchow Associates of Denver. Skyline P a rk landscaping is by L aw rence H alprin and Associates of San Francisco, Calif. The leasing agent is Grubb & Ellis Com pany of California w hich is estab lishing a regional office in Denver. N orth w estern Banker, A p ril, I9 7 Í 68 ★ ★ • WE PUT IT ALL TOGETHER I * V- ★ U.S. National Bank people are experts in solving your puzzling problems. And it’s never a game with us. We understand your individual needs and we are experienced in figuring out how to make our services work for you. It’s no mystery why over 250 banks in 10 states bring their problems to us. We’ll fit in perfectly with your people, too! ^ ★ ★ ★ U.S. NATIO NAL BAN K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V OMAHA ★ N o r t h w e s t e r n B a n ke r, A p r i l , We're looking forward to see ing you all in our Clark Room suite, on the mezzanine, at the NBA Convention in May. ★ 1971 f f,n 7 4 f li A n im a l C o u v e n t io n Xebraska Hunkers Association llm a lia H ilto n H ô te ! M ay 2 -1 . 1971 WO natio n ally p ro m in en t banking figures, a dozen N ebraskans from th e fields of governm ent, business and education and a form er Miss A m erica, w ill be a p a rt of the program for the 74th annual convention of th e N ebraska B ankers A ssociation May 2-4 in Omaha. W ith the new Om aha H ilton H otel being used as h ead q u arters for th e first tim e, the 1971 convention is expected to a ttra c t a record registration. T SCHEDULE OF O FFIC IA L M EETIN G S Sunday, May 2 H. L. M c K I B B I N P.M. 2:00 H O N . j. j. E X O N E xecutive Council M eeting—Ballroom Center. C om m ittee on N om inations—Room 602. C om m ittee on R esolutions—Room 604. 5:30 Social H our—B allroom E ast. and wives. 6:30 E xecutive Council, P a st P resid en ts and W ives D inner—Ballroom E ast. 2:00-9:00 E xecutive Council, P ast P residents R eg istratio n —M ezzanine Monday, May 3 J. W . C A T T L E A.M. 7:30 B reakfast—The G raduate School of Banking, U niversity of W iscon sin—B allroom East. 8:00 R egistration—M ezzanine. 9:00 B usiness Session------Ballroom W est. Presiding, H. L. M cKibbin, president, N ebraska B ankers Associa tion, Inc.; executive vice president, B ank of Gering, Gering. F o u n d atio n for F ull Service B anks—K erm it H ansen, N ebraska State Chairm an; executive vice president, The U nited States N a tional B ank, Omaha. Special G uest—H en ry E. Ley, D irector of Banking, Lincoln. “B an k in g ’s D ilem m a”—H. L. McKibbin. “The Outlook for B usiness and B anking”—Dr. P aul S. Nadler, P ro fessor of B usiness A dm inistration, R utgers U niversity, New B ru n s wick, N. J. “D evelopm ents in B an k ers’ E d ucation”—Dr. L. W ayne Dobson, A bbott P rofessor of B anking, U niversity of N ebraska, Lincoln. F. H. D O U G L A S P.M. 12:00 1:30 H. V. O S T E R B E R G i https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B reakfast—NBA C ounty R epresentatives—Ballroom Center. 7:30 P. S. N A D L E R L uncheon—D elegates, Ballroom C enter and E ast. B usiness Session—B allroom W est. P residing, H. L. M cKibbin, president, N ebraska B ankers Associa tion, Inc. W elcom e—E dw ard D. Brodkey, president, Omaha B ankers Associa tion; president, Ames Plaza Bank, Omaha. A ddress—The H onorable J. Jam es Exon, G overnor of N ebraska, Lincoln. “B anking in th e 70’s”—E ugene H. Adams, president, The F irst N ational B ank of D enver, Denver, Colo. R em arks—The H onorable W. H. Hasebroock, Speaker of the N e b rask a L egislature, Lincoln. B usiness Session: NEBRASKA CONVENTION . . . (T urn to next page, please) L. W . D O B S O N N o r t h w e s t e r n B a n ke r, A p r i l , 1971 70 N ebraska N ew s 6:30 A.M. 8:30 E. H. A D A M S W, H. H A S E B R O O C K R eport of C om m ittee on Resolutions. T here w ill be no form al social hour. Delegates and ladies are in vited to visit th e hospitality room s p rio r to th e convention banquet. Convention B anquet—G rand Ballroom, H ilton Hotel, Omaha. “Goals and D ream s”—M arilyn Van D erbur (form er Miss A m erica), D enver, Colo. Tuesday, May 4 B reak fast Session—Delegates, Ballroom W est and Center. Presiding, H. L. M cKibbin, president, N ebraska B ankers Associa tion, Inc. N.B.A. T re a su re r’s R eport—F red H. Douglas, vice president, The Om aha N ational Bank, Omaha. E lection—The A m erican B ankers Association. Presiding, Roland E. E m m ett, A.B.A. State Vice P resident; p resi dent, Citizens State Bank, A rapahoe. R ep o rt—“M. R. M organ Grants-in-Aid F u n d ”—Tom S. Cummings, m em ber, NBA Grants-in-Aid Committee; president, The F irs t N ational Bank, Cozad. “W e A re R eady to Go”—L a rry Johns, executive vice president, B usiness D evelopm ent C orporation of N ebraska, Lincoln. “Banks and th e F a rm ers Home A d m inistration”—E lvin A. A dam son, State D irector-at-Large, F arm ers Home A dm inistration, U nited States D ep artm ent of A griculture, Lincoln. R. E. E M M E T T T. S. C U M M I N G S Ladies’ Program P.M. 12:30 6:30 M. V A N D E R B U R L adies’ L uncheon—E m pire Ballroom, H oliday Inn, 3321 South 72nd S treet. (B uses will leave the H ilton H otel beginning at 11:45 a.m. to th e H oliday In n for the L adies’ Luncheon. R etu rn buses at the conclusion of th e afternoon program .) C onvention B an q u et—G rand Ballroom , H ilton Hotel, Omaha. Tuesday, May 4 A.M. 8:30-9:30 B uffet B reak fast—Ballroom E ast.— End. R eport of Com m ittee on N om inations: E lection of Officers. t 'o m m itte e M e e t i n g s S e ll e d tile d H E com m ittee on nom inations and resolutions w ill m eet Sunday, May 2, d u ring the 74th an n u al convention of the N ebraska B ankers A ssociation in the room s and at th e tim es designated below: T Committee on Nominations Room 602 at 2:00 p.m. Group 1—M arion C. Bonham , p resi dent, F irs t N ational B ank, York. Group 2—H. K eith N ew ton, execu tive vice president, The Albion N a tional Bank, Albion. Group 3—Don E. Sm ejkal, vice p res ident, The DeLay F irs t N ational Bank, Norfolk. Group 4—R. J. M organ, president, F irst N ational Bank, Elwood. Group 5—Lloyd A. Bacon, president, The F arm e rs State Bank, Lexington. Group 6—Joel H. W iens, president, F irs t State B ank, Kim ball. Committee on Resolutions Room 604 at 2:00 p.m. Group 1—Lloyd E. Van Cleef, cash ier, D eW itt State Bank, DeW itt. Group 2—R ay R. Stanley, president, C enter Bank, Omaha. Group 3—Don G. Johnson, executive N o r t h w e s t e r n B a n ke r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis vice president, F arm ers N ational Bank, Pilger. G roup 4—J. F. E ngland, president, F arm e rs & M erchants Bank, Axtell. G roup 5—C. A. (Bud) Gaghagen, Jr., president, C entral Bank, C entral City. G roup 6—Jo h n T. Selzer, vice p resi dent, The Scottsbluff N ational Bank, Scottsbluff. Convention H osts DWARD D. BRODKEY, president of th e Omaha B ankers Associa tion and p resident of th e Ames Plaza B ank in Omaha, is serving as general ch airm an for the N ebraska B ankers A ssociation’s 74th annual convention at th e O m aha H ilton Hotel, May 2-4. A ssisting him as com m ittee m em bers are these Omaha bankers: Jo h n P. Jeffrey, president, W est Om aha N ational Bank. J. M. H art, Jr., president, N orth Side Bank. Jo h n R. L auritzen, chairm an of ex e c u t i v e com m ittee, F irs t N ational Bank. Don J. M urphy, president, N o rth w estern N ational Bank. Carl A. B rady, president, Douglas C ounty Bank. E E. A. A D A M S O N M orris F. Miller, chairm an, The Omaha N ational Bank. E dw ard W. Lym an, president, The U nited States N ational Bank. Jam es A. Irving, president, F irst W est Side Bank. ^ R ay E. Stanley, president, Center Bank. P e rry S. F rancis, president, South w est Bank. Jo h n E. K night, president, Packers N ational Bank. Hostess Committee Mrs. F red H. Douglas, w hose h u s- > band is vice president, The Omaha Na tional Bank, is chairm an of the hostess < com m ittee. Serving w ith her, and the banks w ith w hich th ey are affiliated, 4 are: M esdames R obert Brow n, F irst Na tional; Ja y F. Bordew ick U nited States National; E dw ard D. Brodkey, Ames Plaza; Doris Capps, C enter Bank; EveA lyn Schafer, Douglas C ounty Bank; Ron L. Hale, F irs t W est Side; P e rry 4 S. F rancis, S outhw est Bank; J. P eter ^ Jeffrey, W est Om aha N ational; H elene Lesac, Packers N ational; F ra n k J. Si- >• bert, N orth w estern N ational; Florence B. Conway, N orth Side Bank; G ary Rotzin and George C. R ankin, Federal R eserve B ank.— End. 71 We aim to please you . . . FRANK SIBERT V ice P re sid e n t BILL GRAVES Vice P reside nt y DAN RISHEL Asst. V ice P resident DON J. MURPHY P resident ED PROBASCO V V ice P resident JOHN FARRELL Vice P reside nt Dart for the “Weatherball Room” A t th e H ilto n H o te l in th e L e w is R o o m . . . M a y 2 -3 -4 <1 Northwestern National Bank New Weatherball on to p o f ou r M o to r Bank changes colors to predict changes in th e w e a th e r. Red m e a n s w a rm e r — wh i t e, c o l d e r — green, no change — — and blinking, rain or snow. RAIN OR SNOW https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Omaha, Nebraska N o r t h w e s t e r n B a n k e r, A p r i l . 1971 72 N ebraska New s mou Will See Them nl the X v h ra sh a H E following m etropolitan b an k ers, in v estm en t m en and service equipm ent dealers have indicated they will be attending the 74th ann u al N e b raska B ankers A ssociation Conven tion in Omaha, May 2-4: T □ VAULT DOORS — A com plete range of sizes, finishes and architrave designs. □ DRIVE-UP WINDOWS — Flush and bay designs with service equipm ent to meet any requirem ent. □ SAFE DEPOSIT BOXES — Standard or custom units to f it any size space. □ DEPOSITORIES — A variety of designs and finishes com plete w ith chute and receiving chest. YALE@SECUR1TY EQUIPMENT NOW AVAILABLE FROM THE SPECIALISTS TO YOUR STATE BANKERS ASSOCIATION FOR BANK EQUIPMENT SALES/SERVICE F. E. DAVENPORT REGIONAL OFFICE OMAHA, NEB. 68X02 — ——— — I V / \ [E A T O N ] T M I L .C RYE, N.Y. 10580 N o r t h w e s t e r n B a n ke r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Chicago American National Bank & Trust Co: Bill Davis and Bill Aldrich, second vice presidents; George H. Spence, ag ricu ltu re officer. Continental Bank: Sam uel D. Addoms, vice president, and Charles E. Sm ith, assistan t cashier. First National Bank: N evin G. Bow ser, vice president; R aym ond V. Dieball, assistan t vice president, and Clar ence E. Cross, Jr., assistan t cashier. Harris Trust and Savings Bank: Forbes M. Taylor, vice president. Northern Trust Company: F re d erick C. Pullm an, vice president; Jo h n N. Fix, second vice president, and T hom as W, W alvoord, assistan t cash ier. Denver Central Bank & Trust Company: Don E ch term eyer, vice president, and Jo h n E dm iston, assistan t vice p resi dent. The First National Bank:, E ugene H. Adams, president; Royce B. Clark, vice president, and Jam es E. Friesen, rep resen tativ e. United Bank of Denver: Don Ferrel, vice president, and Dave Calahan, com m ercial b anking officer. Kansas City Commerce Bank: F re d N. Coulson, Jr., and T. C. Cannon, vice presidents, and R ichard M uir, assistan t vice presi dent. City National Bank and Trust Com pany: Roy A. Thom pson, senior vice president, and Jack E. Beets, vice p res ident. First National Bank: George C. Dudley, senior vice president, and P aul A. P eterson, assistan t vice p resi dent. Lincoln First National Bank & Trust Com pany: B urham Yates, chairm an; W il liam C. Sm ith, president; W alter Nolte, executive vice president; C harles R. Leffler, A. S. Chaves, Dale Shoem aker, Lyle Stonem an, Les C urran, R obert W. Johnson, R obert N orthrop, G erald Schmid, George Barlow, W illiam Edgecom b, vice presidents; Jam es B ul lock and J e rry H olscher, assistan t vice presidents; Van E. Korell; Bill Van W erden, sales rep resentative; Donald D ischer, m anager, B ank A m ericard center. Ita n lirrs National Bank of Commerce: Paul Amen, president; W ilbur H. Baack, vice president, and A. C. Jack Holmquist, vice president. New York Chase Manhattan Bank: Robert L. D enner, vice president, and W illiam J. Connellan, second vice president. Chemical Bank: E. B ruce Brandi, vice president, and M alvern Hill, Jr., assistan t vice president. First National City Bank: Robert Stokes, assistan t vice president. Manufacturers Hanover Trust Com pany: Carl G. Carlson, a ssistan t vice ^ president, and E arl H. L undin, Jr., as sistan t secretary. St. Joseph American National Bank: B enton Calkins, president; G ilbert Tootle, sen- * ior vice president; E v e re tt C rum e and Donald Folks, vice presidents. ^ First National Bank: B enton O’Neal, vice president, agriculture, and Jo h n F. Gach. assistan t vice president, ag ri culture. First Stock Yards Bank: Jo h n E. v E arn , vice presid en t and cashier. Sioux City First National Bank: C harles R. W alcott, senior vice president; R ichard C. Taylor, vice presid en t and cashier; G ary Stevenson and Mike B roderick, assistan t vice presidents. Northwestern National Bank: S tan ley W. Evans, president, and Jam es J. v McGill, vice president. Toy National Bank: Leslie H. Olson and R ichard A. Breyfogle, vice p resi dents. Bank Equipment and Other Firms Charles E. Walters Company: J. Mason H enry, president. Chiles, Heider & Company: Bill Beavers, H al Childs, Joe H aller, Jam es Kineen, vice presidents, and Jam es Foley, a ssistan t vice president. Rain, Kalman & Quail: W illiam Gourley and Howell Roberts. Life Investors of America: Don Shepard, regional m anager-credit insurance. Omaha Printing Company: H arvey H ayes, executive vice president; Rob e rt A. Best, vice president; “B lim p” Johnson and C harlie King, sales representatives. Robert E. Schweser Company, Inc.: L. L. Law rence, president; F ra n k E. W illiam s, executive vice president; P atrick H. Rensch, R obert E. Roh, W illiam M arch and H a rry E. Coe, vice presidents; C. W. Poore, Jr., secretarytre a su re r. Located in D akota Suite. v 1 < S ^ * , Come to the 1971 Nebraska Bankers Convention in First National Center. May 2 - 4 at the beautiful new Omaha Hilton First N a tio n a l w elcom es you to the 1971 N ebraska Bankers A sso cia tio n C o n ve n tio n , m eeting fo r the firs t tim e at the luxurious O m aha H ilto n in First N a tio n a l C e n te r. During your stay yo u 'll enjoy c o m fo rt and co n venience only the H ilto n can o ffe r, and y o u 'll also g e t a look at our new 22-story bank b u ild in g . So make plans to a tte n d rig h t now. FIRST NATIONAL BANK OF OMAHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r. A p r i l , 1971 74 N eb ra ska N ew s I nited States Check Book Company: C. B. B atchelder, president; F red E. Pfaff, vice president; K ent M iller, Chuck P eterson, Ron Ford, R ichard Dick, Dick H ansen and H ow ard Yarwood, represen tativ es. Van Horne Investments: Jo h n E. Van H orne, president; Mike W. Van H orne, vice president, and D ennis Buckley, secretary -treasu rer. Yale Bank Service: C harles R. Allen, product sales m anager, and A1 M eyers, representative. Joins Aurora Bank K enneth E. T aylor has been elected assistan t cashier at th e F irs t N ational Bank. Albion Bank Remodeling Com pletion is expected soon on the rem odeling of the Albion N ational Bank, Albion. Yale B ank Service Divi sion is in stallin g a new th re e and one-half inch th ick v a u lt door, a drive- 9k N E W H O M E fo r F i r s t S ta te B a n k a t S h e lto n , N eb r. up w indow, and a n ight depository k °x - system for th e new building. C onstruction on the building started in June. 1970. New Shelton Bank Five Points Bank P au l A. M unson, executive vice p res ident of the F irs t State Bank, Shelton, has announced th a t th e bank recently held a public open house to display its new building. Yale Bank Service Divi sion installed the vau lt door, drive-up w indow, n ight deposit box, and alarm W. W. M arshall, Jr., p resid en t of the new ly-chartered F ive P oints B ank in ^ G rand Island, has announced th a t the bank hopes to occupy its new building by mid- to late- sum m er. Capitalization of th e b an k consists of $200,000 capital, $200,000 in surplus, ' and $100,000 in undivided profits. The b an k ’s ro u tin g symbol is 76 167 1041. ' O ther officers besides Mr. M arshall will be announced in the near future. We can help you . . - «- Award to Crete Banker ■=« F red W. K erst, presid en t of the City N ational Bank, Crete, w as recently ^ aw arded th e “Service to M ankind” aw ard by the Crete Sertom a Club. Joins Bank at St. Pan! D uane Gillham has recently accepted a position as a ssistan t cashier at the v Citizens N ational Bank, St. Paul. John Van Horne Michael Van Horne Philip A. Lorenzen H o rse M e te r ! C A P I T O L ROOM H ILTO N H O T E L OMAHA NBA CONVENTION MAY 2-4 Robert Kirkendal! Larry Morse M ID W E S T SN O W ST O R M S tie d up traffic * a n d tra v e le rs on s e v e ra l occasions th is w in te r b u t th is G ra n d Is la n d m an w a sn ’t *. . d e te rre d fro m his v is it to his in v e s tm e n t b ro k e r. H is f a it h f u l dog a n d horse m ade v i t th ro u g h th e b liz z a rd a n d he p a rk e d a t a p a rk in g m e te r in f r o n t of F i r s t M id A m e ric a ’s office in d o w n to w n G ra n d Islan d . A s one of th e b ro k e rs co m m en ted : “ H e ’s one guy who g o t a w a y w ith ‘h o rsin g I a ro u n d w ith th e m a rk e t.’ ” N o r t h w e s t e r n B a n ke r, A p r il, 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis > https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7G N ebraska N ew s Diebold, Inc., com plies w ith the new FDIC regulations and has added space for safety deposit boxes. The w alls and ceiling are of 18-inch steel-rein- * forced concrete, and the floor, also steel reinforced, is n early 40 inches* thick. G eneral co ntractor for the project r w as S ch reir’s L um ber Com pany of V erdigre. Max N. Cooper is p resident of the > bank. Hip, Hip, Hooray— Ouch! N E W B U IL D IN G - fo r C e n te r S ta te B a n k a t C e n te r, N e b r. Center Bank brick stru c tu re of 28 by 40 feet and has room for expansion. I t is ju st south of the old b ank building. The building has a large lobby, a large w ork room, a 10 by 15 foot conference or office room, and am ple storage space. The vault, w ith a door installed by The C enter B ank, Center, recently occupied its new ly-com pleted building, ju st in tim e for th e b a n k ’s 70th an n i v ersary w hich it w ill celebrate A pril 17. T he new building is a one-story MAHA RINT1NG 1 12 Y EA R S O F S E R V IC E Servicing the Mid-States Area Since 1858 OMPANY THE COMPLETE BANK SUPPLIER EDP Supplies Data Processing Supplies & Furniture Microform Retention & Retrieval Systems Office Suppl ies Office Furniture Computer Forms— Bank Forms— Printing 1301 FARNAM ST. — OMAHA, NEBRASKA — PHONE 342-7123 for alert CORRESPONDENT BANK SERVICE, call on W e s B o w en , our V, P., Special Services The cheerleading of seven high ' school cheerleaders—w ho happen also to be m em bers of the staff of the F a rm ers and M erchants Bank, M ilford—w as ^ not, alas, enough to p rev en t the loss of the M ilford H igh Eagles to P a w n e e \ City in a Class C basketball regional playoff recently. ^ D espite th e g irls’ ringing sendoff at an afternoon rally, the Eagles lost to Paw nee City 50-39. The girls w ere: V Mrs. Gwen H ershberger, bank secre ta ry and head cheerleader; Mrs. Phyl-^ lis Dunlap, w ife of bank P resid en t Alan Dunlap; Mrs. Shirley Treu, a teller; Mrs. S h arry K apke, head bookkeeper; Mrs. M aralee M eyer, head teller; Mrs. Janice Bell, teller, and M rs K athy DeVries, secretary-receptionist. (U nlike th e Omaha World-Herald, w hich re- 7 ported the story, the staff of N orth western B anker is far too chivalrous to disclose th e y ears in w hich the girls graduated.) The cheerleading gam bol — w hich cam e as a su rp rise to m em bers of Mil ford H igh’s “legit” cheerleaders—w as ^ th e outgrow th of a m iscue on th e p a rt of P resid en t D unlap. All y ear he has A had the girls in the b ank w earing th e ^ school’s colors on football and b ask et ball gam e days. T hen w hen the for- , tu n es of th e basketball team m u lti plied, he ra n an ad in the p aper sup- r po rtin g the team ’s efforts and claim ing th a t he had an ex-cheerleader on his A staff—Mrs. Kapke. T here w as considerable static, ap parently, from the other six w ho had been overlooked—including Mrs. D un lap. So th e b ank ra n an o th er ad * w ith pictures of all seven. F in ally the girls w ere coaxed out of retirem en t, and th e bank and m ost of ^ th e o ther businesses in tow n closed early on the day of the rally. Frank Waggoner n f i n i r r f l f * National Bank H H I . K r K r t 24th & ° * 402/ 731-4900 1 n y i l b l i u Omaha, Nebr. 68107 Member FDIC / N o r tfor h wFRASER e s t e r n B a n ke r, A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis f F u n eral services w ere held recently for F ra n k W aggoner, 94, p resid en t of ^ the Commercial State Bank, Republi- t can City. Mr. W aggoner w as a form er farm er and a director of th e Coop Oil Company, Alma. He had served 61 y ears on the board of F a rm e rs M utual Insu ran ce Company, Lincoln. 77 We’re bringing the City to the convention. C ity N a tio n a l B a nk likes conve n tio n s and a tte n d s th e m re g u la rly . It gives the M e n fro m the C ity a chance to brush elbows w ith o u r corre sp o n d e n t colleagues, and to discuss face to face the ways we m ig h t serve you b e tte r. By a n tic ip a tin g yo u r needs, and co m in g th ro u g h fo r you, C ity N a tio n a l B a nk has grow n to becom e M id -A m e ric a 's m ost dep endable correspond ent. T h e C ity has a lot to o ffe r. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis National Bank & Trust Company K ansas C ity, Mo. A MISSOURI BANCSHARES BANK N o rth w e ste rn B anker, A p ril, Ì9 7 Ì 78 taled 728.120, w hich includes the De cem ber 31, 1970, 10 per cent stock divi dend. * * * * F u n eral services w ere held recen tly * for Joseph Grainger, 73. Mr, G rainger w as presid en t of the M erchants Invest- ^ m ent Com pany and a director of F irst N ational Bank and T ru st Company. * O COMMEMORATE th e 100th a n n iv e rsa ry of F irst N ational B ank & T ru st Com pany of Lincoln, th e L in coln new spapers (Journ al-S tar P rin t ing Com pany) hosted a d in n er at th e C ountry Club of Lincoln recently. R epresentatives from all facets of th e Lincoln b u si ness com m unity w ere in a tte n d ance. As pointed out by Joe R. Seacrest, vice p resi dent of th e J o u r nal-Star P rin tin g C o m p a n y , the b ank w as ch a r tered as a n atio n al b an k by the C om ptroller of th e C urrency on F e b ru a ry 24, 1871. The bank has grow n w ith th e population grow th of Lincoln and th e state of Ne braska. Its 11 leaders, board of direc tors, officers and em ployees co n trib uted im m easurably both to th e eco nom ic and civic g ro w th and a ttra c tiv e T * * .V Lee Struble has joined the Corn , h u sk er B ank as cashier. Mr. Struble has had 14 years of experience w ith . the B renton B anks of Iowa, the last five y ears of w hich w ere sp ent as man- ness of Lincoln and N ebraska. The b ank has w eath ered speculative pros ager of the Dallas C ounty State Bank •**' p erity and the ad v ersity of m oney p an of Adel in Redfield, Iowa. * * * ics, depressions, droughts, w ars and A th e collapse of land values and stock Wilbur H. Baaek, vice president, Na prices. tional Bank of Commerce, has been In his response, Burnham Yates, named as head of the b a n k ’s corre chairm an of the board, expressed his spondent d ep artm en t, according to ■ sincere appreciation for such a w on NBC P re s id e n t » d erful occasion b ut stated th a t it w as Paul Amen. not a tim e to look back, other th a n to Nam ed to assist < gain in sp iratio n th a t will help all of Mr. Baack is A. us in m eeting the challenges of the C. (Jack) Holm- * fu tu re. q u i s t III, v i c e * * * p re s id e n t, w h o 1 has been in th e „ Glenn Yaussi, p resident of NBC com m ercial l o a n Com pany, th e one b ank holding com departm ent. \ p any for N ational B ank of Commerce The correspond T ru st and Savings, announced a divi en t loan and bankdend pay m ent on M arch 31, 1971, of i n g d ep artm en t w 11 cents p er sh are to stockholders of record on M arch 18, 1971, for th e first will be tra n sfe rre d ad m inistratively from th e m ark etin g division to the .. q u a rte r of 1971. The M arch 31 paym ent totaled $80,- loan division, w hich will continue to 126 as com pared to $72,842 in th e first be m anaged by James F. Nissen, Jr., f senior vice president. i q u a rte r of 1970. O ustanding shares to-» - THE LINCOLN (Q ^ n efitc^ e COMPANY LINCOLN BENEFIT LIFE BUILDING ® LINCOLN, NEBRASKA 68508 Part of The Greater Nebraska Corporation "T.Q" TELEPHONE QUICK SERVICE R. V A N D E B E R G ON OUR WATS LINE IN NEBRASKA DIAL YOUR ACCESS CODE. THEN 800-742-7335 STEVE SUTTON KEN NIEVEEN CREDIT IN SURANCE O RD IN ARY LIFE IN SURANCE SEE YOU AT THE NEBRASKA BANKERS CO N VENTIO N , May 2-3-4 Omaha Hilfon Hofei Omaha, Nebraska N o r t h w e s t e r n B a n ke r, A p r i l , 19 7 ? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R. E, H E C H T i Gene C. Eaton, senior vice president in the m ark etin g division, has resigned * as of May 1, a fter 33 y ears w ith NBC ^ to devote full tim e service to private business interests. . Ross Hecht, vice presid en t in charge of the financial services group, w ill become vice presid en t of th e m a rk e t ing departm ent. He has also been se lected as a m em ber of the manage- y m en t com m ittee. Rodney P. Vandeberg, vice p resi dent, com m ercial loan departm ent, has been prom oted to m anager of th e de partm ent, 79 ERV- g ING YOU BETTER BEGINS WITH DOING COMMON THINGS UNCOM MONLY W ELL. A n d t h a t ’s w h a t w e s t r i v e to d o . F I R S T N A T IO N A L B A N K L IN C O L N 13th and M Street * Lincoln, Nebraska 68501 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn Banker, A p ril, 1971 80 O m ah a N e w s F. J. B E N N E T T H E F irs t N ational B ank of Omaha has prom oted John W. Sadaj, Elias ,1. Eliopoulos, Nick Kostos and Wil liam Lopeman to operations officer, ac cording to a recen t announcem ent. T W 1. C. L O P E M A N J. W . S A D A J N. K O S T O S E. J. E L I O P O U L O S Mr. Sadaj joined th e b ank in 1965 in the m ortgage loan d ep artm en t and in 1969 w as prom oted to m ortgage servic ing m anager. Before com ing to the F irst N ational B ank, Mr. Sadaj w as a retired m ajor from the U. S. A ir F orce after 22 y ears of active duty. He w as both a pilot and an ad m in istrato r. Mr. Eliopoulos w as b o rn and a t tended high school in A thens, Greece. He cam e to th e U nited States to atten d C reighton U n iv ersity w h ere he a t tained a B.S. degree in economics. He received his M asters D egree in eco nom ics a t th e U n iv ersity of N ebraska in 1969 after w hich he joined th e bank as a m anagem ent trainee. He w as as signed th e duties of p u rch asin g ag en t in 1970 and in J a n u a ry of th is y ear w as prom oted to operations officer. Mr. K ostos w as b o rn in Om aha and received his B.S. degree in business at the U n iv ersity of N ebraska a t Om aha N o r tfor h wFRASER e s t e r n B a n k e r , A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in 1968. A fter com pleting his educa tion he joined the bank. He is a m em b er of Ak-Sar-Ben. Mr. Lopem an w as born and attended school in G alesburg, 111. P rio r to join ing th e b ank in D ecem ber of 1969, he spen t 11 years in th e U nited States A ir F orce Security Service. * * * A new in v estm en t banking firm, Rahel, K nack and Company, has been form ed in Omaha. Both p rincipals of th e firm, Cliff R. Rahel and George R. Knack are w idely know n in th e Iow a-N ebraska financial com m unities, hav in g served as p resi d ent and senior vice p resid en t of the J. Cliff Rahel In v estm en t B anking C om pany for m any y ears pro r to its sale in 1969. C. R. R A H E L G. E. K N A C K Rahel, K nack and Com pany is a m em ber of th e M idw est Stock E x change and w ill execute orders on the New Y ork and A m erican Stock E x changes. T hey w ill also serve as u n d e rw rite rs and d istrib u to rs for new issues of m unicipal bonds and corpo ra te securities. The firm ’s offices are at 1160 Omaha Building. * * * C hairm an and chief executive officer of The Omaha N ational Bank, Morris F. Miller, announced the prom otion of tw o senior officers and the appoint m ent of tw o ju n io r officers at th e con clusion of th e M arch m eeting of the b a n k ’s board of directors. Frederick J. Bennett and Gilbert R. Gadzikowski, vice presidents, have G. R. G A D I Z O W S K I been prom oted to senior vice p resi dents; Lloyd C. Lunder has been ap- v pointed an operations officer, and Dan iel P. BockeIniann has been appointed an assistan t com m ercial loan officer. Mr. Gadzikow ski joined The Omaha ‘ N ational B ank in M arch, 1970. HeA came from L ester B. K night and Asso ciates of Chicago. Mr. Gadzikow ski initially served as b ank com ptroller, and is now heading up the staff serv ices division since th e b ank reorganiza tion. ’ Mr. B en n ett came to th e Om aha Na-^ tional in Ju n e of 1967 as ad m in istra tive assistan t to the president. He w as xappointed th e responsibility of d irect ing the construction of th e new bank building in D ecem ber of th e sam e year. Mr. B en n ett also directed the construe- ^ tion of th e drive-in w alk-in ban k at 19th and Dodge. In Ja n u a ry of 1970, S he w as prom oted to vice p resid en t and in Ju ly of the sam e y ear w as ap pointed to head up the b ank operations ~ division. Mr. L u n d er joined th e ban k staff as a senior system s an aly st in N ovem ber of 1969 and becam e a project m anager r in May, 1970. In N ovem ber of the^ sam e year, he tra n sfe rre d to th e con sum er banking division, w here he w as appointed m anager of custom er serv ice in Ja n u a ry of 1971. Mr. B ockelm ann came to th e ONB in June, 1970, as a business develop m ent rep resen tativ e. Due to th e reorganization of th e b ank divisions, he is now in the com m ercial banking de- — p artm e n t w here he has been com m er cial banking rep resen tativ e. * * % John H. Mitten has been appointed * tre a su re r of the N ebraska division of the A m erican Cancer Society. Mr. M it ten is vice presid en t of the Omaha N ational Bank. * * * Mike Novak, vice p resident of the t Douglas County Bank, w on first prize in a public speaking contest sponsored 4by the Omaha ch ap ter of the A m erican In stitu te of B anking. He w ill advance k to a d istrict contest A pril 17 at Sioux City, Iowa. OMAHA NEWS . . . (T u rn to page 90, please) 81 L. L. Lawrence President William March Vice President j Frank E. Williams Executive V.P. Patrick H. Rensch Vice President and Counsel Robert E. Roh Vice President Harry E. Coe Vice Pres. Charles W . Poore Sec.-Treas. O RCH IDS for ladies attending the Nebraska Banking Convention are a Schweser custom — as tradition al as , SERV R O B E R T E, SCHWESER COMPANY INCORPORATED INVESTMENT BANKERS * UNDERWRITERS OF M UNICIPAL & CORPORATE SECURITIES 208 South 19th Street, Omaha, Nebraska https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Albuquerque, New Mexico N o rth w e stern B anker, A p ril, 1971 82 N ebraska N ews B U IL D IN G fo r B a n k of S ta p le to n , a t S ta p le to n , N e b r., fe a tu re s a d riv e-u p w indow . v- S ln p lv to n O p en s Xoir Ouihljjnfi HE B ank of Stapleton, Stapleton, has recen tly finished rem odeling and expects to hold open house in th e near future. The a rc h ite c tu ra l firm of M urphy-N elson from N orth P la tte de signed th e building, and its sidew alks, p arking lot, drivew ay and sign and supervised th e ir installation. Yale B ank Service D ivision supplied a th ree and one-half inch th ick v au lt door, th e drive-up w indow , safe depos it boxes, and th e alarm system . The building w as co nstructed of grayish-tan w ash face brick exterior, w ith m aso n ry backup, and it has a T Promotions at York concrete floor, a steel joist roof and deck w ith built-up roofing. E x terio r trim is of anodized bronze alum ium w ith a w hite concrete cap on corners and p lan ters. In terio r w alls are dryw all on steel studs. The building is heated w ith a forcedair gas furnace and cooled by a a ir cooled com pressor. The in terio r is p artly carpeted, th ere are drapes at the w indow s and the interior w alls have wood paneling vinyl-coated fabric covering, The bank wras occupied in the m id dle of Jan u ary . 4 C. G. H oltus, vice president and cash ier at the F irst N ational Bank of York, V was recently elected to the board, and A. M. Brown, Jr., w as prom oted to assistan t cashier, ♦ LaV erne P eterson, vice president and a p ricu ltu ral rep resen tativ e at theh* bank, was recently elected president of the N ebraska Society of F arm ^ M anagers and A ppraisers. New Hyannis Director ^ Boyd Jones, executive vice president at the Bank of H yannis, has been elect- ^ ed to the b an k ’s board of directors. r CHILES, HEIDER & CO. wants to visit with you at the Nebraska Bankers Convention. If you miss us there, visit our new headquarters in the Woodmen Tower in Omaha. r « From the Left: James P. Foley — Joseph E. Haller — C. M. (Bud) Kelly — Hal F. Childs — Charles F. Heider — Bill Beavers — James P. Kineen. * CHILES, HEIDER & CO. / -t + N V ES T /Vi ENT S T OCKS A ND BO N D S 1300 W O O D M E N TOW ER O M A H A . N EBR ASKA 68102 Digitized N o r tfor h w FRASER e s t e r n B a n k e r , A p r i l 5 19 7 î https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■ (4 0 2 ) 346-6677 4- 'O iivoup Presidents »Par ni nnd Financiai t'onditions R. D. SCHNEIDER Vice President Plattsmouth State Bank Plattsmouth President Group 1 “If it doesn’t dry out soon, we w ill be p lan tin g corn during norm al planting season instead of the m iddle of A pril.” C attle prices are p re tty good; hog ra is ers are disappointed. G rain prices are favorable and w ith sufficient m oisture we hope to have an o th er good crop. DENNIS BREWSTER U SIN ESS is norm al in the group one area. A lthough nationally, wide sw ings in th e business cycle f-have occurred, these cyclical changes do n o t seem to affect th e ru ra l comm unities w hich dom inate so u th east ern N ebraska. W e have n o t ex p er ienced th e sh arp increase in loan de^ rnand, un em ploym ent is static, and we have not followed th e d rastic changes r show n by o th er econom ic indicators. Locally, th e P la ttsm o u th In d u stria l D evelopm ent C orporation has erected a speculative steel shell building as a lure to in d u stry . It is a 17,500 square , foot cl ear-span s tru c tu re on five acres b u i l t w ith th e assistance of the > N ebraska D ep artm en t of Econom ic D evelopm ent an d th e N ebraska P u b lic Pow er D istrict. I t is one of th e first pilot buildings in th e state. 1970 crops w ere about 25% low er th an norm al. D ry w eath er, h ail and w inds all co n trib u ted to crop losses. S outhern corn leaf b lig h t w as not a significant problem , b u t som e farm ers A- will p la n t m ore g rain sorghum, or soy beans to hedge ag ain st corn b lig h t damage. Since th e farm pro g ram for 1971 w ill be su b stan tially reduced, some farm ers are considering drop-r ping the pro g ram th is y e a r a fte r m any years of participation, r “Make G roup One N um ber One” is th e slogan for th e group m eeting in * Lincoln on Septem ber 28, 1971. W e w an t to surpass all o th er groups in attendance th is year. P lan to atten d .j and brin g an o th er officer w ith you! Vice President B x- STANLEY J. BEDNAR Executive Vice President Washington Bank County Blair President Group 2 4 ISTR IC T 2 is ju st recovering from th re e bad storm s and consider able flooding both on th e M issouri and E lk h o rn Rivers. F a rm w o rk has been set back because of th e high m oisture, and plan tin g w ill probably be later u th a n a y ear ago. As one farm er p u t it, D https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Butte State Bank Butte President Group 3 I N E T E E N seventy-one in our area w ill be a “Year of Recov ery.” The depressed livestock prices th e last q u a rte r of 1970, the heavy snow s in th e e astern half of the Group III area, and th e floods of F eb ru ary have all tak en th e ir toll of profits th a t we found in 1970. T his leaves 1971 w ith high feed costs, and higher replacem ent cattle costs. The 1971 feed g rain program p aym ents w ill be lower, and m ore m oney will be sp en t on seed, fe rti lizer and equipm ent. C redit needs w ill again increase accordingly, so th a t th e ra te of CD’s and savings w ill rem ain high, w hile th e pressu re for low er b orrow ing rates will increase. The m anagem ent, for all facets of our agri-business economy, w ill be come increasingly im p o rtan t to cope w ith these problem s. it w ould appear the fat m ark et may stay steady to strong. The farm erfeeders in our area are dow n on feedlot cattle w hich w ill be m arketed d u r ing th e second q u a rte r of 1971. The cash g rain price has also im proved w ith the exception of w heat. Corn and w h eat are c u rre n tly selling for about th e sam e price a t local eleva tors. More farm er-feeders are begin n ing to utilize some w h eat as a feed grain. T he m ain stum bling block w hich could have an adverse effect on 1971 ag ricu ltu re in our area w ould be a continuation of last y e a r’s drought. W e need considerable rain or w et snow betw een now and May 1st to get am ple sub-soil m oisture for th e com ing crop. C. A. GAGHAGEN, JR. N ELBERT LOWENSTEIN President Stamford Bank Stamford President Group 4 UR area (South-C entral N ebraska) has enjoyed a m ild w in ter. Stock fields have been grazed continuously since h a rv e st tim e. W e have enjoyed a good h ay m arket, m ost of w hich has been sold to K ansas and points south. The low-calf ran ch er has had a profitable year, having received near record prices per head for last y e a r’s calves. M any of the ran ch ers are re p o rtin g excellent calving resu lts for the 1971 calf crop. C attlee feeders have had favorable re tu rn s on fat cattle since J a n u a ry and President Central Bank Central City President Group 5 U SIN ESS conditions in our area are quite good. W e have had some severe storm s b u t n ot as bad as o ther areas of th e state and our live stock appears to have w in tered well. Feeding gains have been good. The p resen t prices for cattle and hogs are good; how ever, th e cost of re placem ent cattle is high. Our corn crop for last y ea r w as be low th e record high of th e previous year b u t the increase in th e price of corn offset th e reduction in yields p er acre. It appears credit req u irem en ts for the com ing season w ill be hig h er th a n usual as farm ers will p lan t m ore acres due to the changes in th e governm ent program s. We are approaching an o th er grow ing season w ith good w eath er and su f ficient m oisture. Yields should be ex cellent. B O JOEL H. WIENS President First State Bank Kimball President Group 6 IVESTOCK prices are good; w h eat prices are ridiculous. H ow ever L GROUP REPORTS . . . (T u rn to page 88. please) N orth w estern B anker, A p ril, 197i 84 N ebraska N ew s Chuck 11 M§of* Hucsis IHsmss Uvei lmprocemcnt * G A T H E R E D A R O U N D T H E C H U C K W A G O N — L e f t to r ig h t, M e rv A e g e rte r, v.p., F i r s t N a tl. B a n k , O m aha, P h il G iltn e r, pres, of F ir s t, M rs. G iltn e r, L y le W a g g o n e r (a p e rso n a l frie n d o f th e G iltn e rs a n d a s ta r of th e C arol B u rn e tt TV sh o w ), a n d w in n e rs o f the' w e ig h t-g n e ssin g c o n te s t: R a y m o n d N o v a ll, S to rm L ak e , Io w a ; D e n n y W itt, M illa rd , N e b ra s k a ; D e n n is K re ik e m e ie r, W est P o in t. N e b ra s k a ; a n d H o w ard L ogan, pres., F i r s t T r. & S av. B k., M oville, Iow a. LARGE th ro n g of farm ers, ra n c h ers, and b an k ers recen tly a t tended th e 6th A nnual Chuck W agon R oundup sponsored by th e F irs t N a tional B ank of Om aha at th e Ak-SarBen Sales Pavilion at Omaha. M any of those p re se n t brav ed snow s of up to 12 inches in eastern N ebraska, and th ey w ere w ell rew arded for th e ir efforts. The program focused on selection of breed er stock for th e m ost profitable cattle herds. Welcome Don O strand, vice p resid en t for cor respo n d en t b anking a t F irs t N ational, w elcom ed th e audience and w as fol lowed to th e m ike by M erv A egerter, “W agon M aster” and also a vice p re si A den t in th e correspondent d ep artm en t at F irst. Mr. A erg erter w as m aster of cerem onies for the rest of the pro gram . The keynote address w as delivered by Dr. F ra n k H. B aker, chairm an of th e anim al science d ep artm en t at the U n iv ersity of N ebraska, Lincoln. In his talk, “Profit-Based Beef Im prove m ent for th e 70’s,” Dr. B aker pointed out th a t Iowa and N ebraska last year m ark eted about one-third of th e n a tio n ’s fed beef, and in N ebraska beef accounted for about half of th e cash receipts from agriculture. Dr. B aker expressed th e belief th a t th is area stands a good chance of m ov ing to th e top of th e fed cattle m ar ket, because only about half of the cur We are pleased to announce the formation of INVESTMENT BANKERS M em ber of M id w e st S tock Exchange U n d e rw rite rs a n d d is trib u to r s of M u n icip al S e c u ritie s — C o rp o ra te S e c u ritie s C om plete b ro k e ra g e service in stocks a n d bonds Principals: Cliff R, Rahel George E. Knack Omaha, Nebraska 1160 Omaha Building o r FRASER t h w e s t e r n B a n k e r . A p r i l , 1971 DigitizedNfor https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 402— 345-7000 re n t feed supply in this region is com m itted to feeding activities, w hereas* in the Southw est, w hich now leads the field, about 75 p er cent of the available1! feed supply is com m itted. Thus, there is m ore room for expansion in th e Mid- ' w est th a n in th e Southw est. Importance of Genetics Then, settin g th e tone for w h at w as to follow on the program , Dr. Baker«, said, “The beef en terp rise can be cate gorized as about 50 per cent breeding and production of calves and about 50 p er cent grow ing and finishing for slaughter. Today we are concentrat ing on th e breeding and production of th e calves because th a t’s w here w e f set th e p a tte rn or genetic lim itations for the product and for the efficiency!' of the en terp rises.” Dr. B aker pointed out th a t “profitable beef en terp rises depend on cattle to (1) use production resources effec- ' tively in com petition w ith o th er enterprises and (2) yield a product th a t is in sufficient dem and to perm it pricing*at a level to provide adequate profits for use of feed and oth er resources. * Thus, building profit based beef en ter prises is really a genetic or biological engineering program for building or im proving beef cattle.” The success of such engineering pro- * gram s, Dr. B aker said, is dependent on one of th ree things: use of perform ance records, luck of breeders, or the su p e rn a tu ra l ability of breeders. A fter ru lin g out luck and th e su p ern atu ral, he noted th a t u n til th e 70’s breeders * have not k ep t adequate records b u t^ are now beginning to do so. Complete Records Complete records for th e registered breeder, he said, will include “ (1) com plete lifetim e cow production rec ords, including num ber of calves w ith ^ Welcome to Omaha. We at NBC want to make sure that you have a great time at the Nebraska Bankers Convention. So we’re planning our Hospitality Room to be warm and friendly and fun, so that you’ll feel right at home. Please join us, starting at 4:00 P.M. on Sunday, May 2nd. We’ll be looking for you. National Bank of Commerce Main Bank 13th & O Sts. Lincoln, Nebraska https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 86 N ebraska N ew s grow th ra te and o ther characteristics recorded; (2) individual grow th rec ords to a y ear of age for each anim al in th e herd; (3) com plete progeny data for all bulls used in th e herd, includ ing grow th data and oth er c h aracteris tics of th e progeny; (4) carcass data on progeny sam ples or com plete car cass estim ates through reliable in s tru m ents.” Sufficient data for th e com m ercial breeder w ill consist of “ (1) sufficient individual calf production record data on rep lacem en t heifers to identify th a t the producing ability of th e heifer is adequate to co n trib u te to h erd p ro f its; (2) sufficient feedlot and carcass data on feeder cattle produced in the h erd to provide a basis for attractin g feeder cattle buy ers because of the profit p otential of the cattle and to provide a basis for identifying the level of excellence needed in herd bulls bought from rgistered breeders; (3) a herd bull b attery w ith perform ance pedigrees.” Dr. R obert Long, director of re search and developm ent for A nkony Angus C orporation, Rhinebeck, N. Y., th e n took the floor to discuss selection of breeding stock th a t will provide a profitable herd for the cow m an, the feeder, and the packer and a tasty, edi ble product for the consum er. Several things m ust be considered, Dr. Long said, in m easuring the pro ductivity of beef cattle: reproductive capacity of th e anim als, th e ability to calve w ith o u t help, low -heritable traits, and high-heritable tra its such as grow th rate. Unreliable Data Dr. Long w arned against factors th a t m ay m ake perform ance data u n reliable, including the lack of a stan d ard w ay of m easuring and failure to * m ake m easurem ents u n d er sim ilar conditions—or failure to disclose the conditions un d er w hich the data w ere recorded. F o r th e data to be useful, he said, th e breeder m ust know the age of the anim al, its sex, the age of its dam (since th is will m ake a differ- ? ence in w eaning w eights), and n u tri tional differences. Dr. Long then suggested keeping records such as A nkony does. A nkony 1 records the ease of calving, w hy the cow had trouble, type of presentation, type of calf, and its color. He th en A showed a sam ple of the records kept on a y earling bull produced by A nkony and showed how to standardize w ean ing and y earling w eights. Chuck Wagon Luncheon . . . a t F ir s t Mid A m erica Inc., n e a r th e N e b ra sk a B a n k e rs’ C on vention H e a d q u a rte rs. We w ould like to show you o u r O m aha h e a d q u a rte rs and ren ew frie n d sh ip s. O ur s ta ff w ill be h a p p y to v is it w ith you d u rin g y o u r O m aha s ta y and to d iscu ss stocks, c o rp o ra te and m unicipal bonds, m u tu a l fu n d s and com m odities. FMA F i r s t M i d A m e r i c a I n c Member New York Stock Exchange and other principal stock and commodity exchanges 100 C ontin ental Building * Telephone (402) 341-1500 Servin g yon in nine M idw est cities: Lincoln * O m a h a » G ra n d Is land • H a stin g s Des Moines . Sioux City * A tl a n ti c • C ed ar Rapids Kansas City N o r t hfor w eFRASER s t e r n B a n k e r , A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A fter the spectators had view ed th ree Angus yearlings for the w eight guessing contest, th ey broke for a lunch of roast beef sandw iches, salad, relish, baked beans, and ch erry tarts. C ountry and w estern m usic w as pro vided d uring the lunch h o u r by a brightly-clad group of m usicians. A fter the luncheon Bob Ross of Bozeman, Mont., provided a slide lec- * tu re entitled “The Ecology of the H alf Moon”—a comic epic on backhouses. Dr. Long re tu rn e d after Mr. Ross to J discuss the grading system used on cattle by A nkony. The system meas- * ures five tra its —trim n ess (or lack of w astiness), m uscularity, size of fram e, * soundness of stru ctu re, and facial fea tures. A good bull, he said, not only show s good w eight gain at w eaning s and yearling stages—th e com position of th a t gain m ust be correct; these five « tra its describe th a t com position and are m easured on a scale of one to 10, ** w ith perfection being 10. Dr. Long then bro u g h t out the th ree bulls viewed earlier and showed x the audience how to determ ine how m uch w astiness th ere is on a bull, how m uscular he is, etc., scoring them on the scale of 10. W inner of the w eight-guessing con test w as R aym ond Novall of Storm Lake, Iowa, followed by D enny W itt, ^ M illard, Nebr.; D ennis K reikem eier, W est Point, Nebr., and H ow ard Logan, Moville. Iowa.— E n d . your it does make a difference where you bank ! So, bank with the bank that helps you get things I OVERLINES TRUST SERVICES CLEARING OF ITEMS STOCK TRANSFER AGENT , ! \ | INVESTMENT COUNSELLING ! FASTER COMPUTER SERVICES,-*»»1 GARY STEVENSON MIKE BRODERICK Assistant Vice President Assistant Vice President SECURITY PURCHASES AND SAFEKEEPING DICK TAYLOR CHARLES WALCOTT Vice President Senior Vice President We'll be seeing you at the Nebraska Bankers' Association Convention, May 2-4 in Omaha! National Bank I DEPOSITS INSURED TO $20,000 BY F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis % 7t SÌOILX City N o rth w e ste rn B unker, A p ril, 1971 88 Silver-Hollar Gifts at Springfield Open House 52 O R IG IN A L D E P O S IT O R S o f S p rin g field S ta te B a n k re ceived p laq u e s w hen th e b a n k o b se rv ed its 25th a n n iv e rs a ry re c e n tly . T hey a re show n on ab o v e d isp la y b o a rd (26 on each sid e ). R IG H T — R o b e rt D. Isk e , pres., a n d G len n M . A d a ir, v.p. & cash., w ith M r. a n d M rs. J o h n N e itz e l; M rs. G oldie L a th a m , an d D o n ald K ey es, all of w hom re c e iv e d plaques. F F IC E R S and d irectors of th e Springfield State Bank, Springfield, recen tly held open house in cele b ratio n of th e b a n k ’s 25th y e a r of service. One of th e high lig h ts of th e open house w as th e p resen tatio n by th e bank of plaques contain in g u n circu lated 1880 silver dollars to 52 original depositors of th e b ank w ho have m ain tained th e ir accounts for the e n tire 25 years. T hree of th e original organizers of the bank—Roy K iger of F re m o n t and P hil L ath am and Dewey C allaw ay of Springfield — w ere on h and to g reet visitors. The scene w as decorated w ith bou O quets and p lan ters sent by banks in David City, K ansas City, Mo.; D enver, Colo., and Lincoln, as well as from o th er businesses and friends. Gifts w ere received from the F irs t N ational B ank of Lincoln; C hristensen A dvertis ing, Omaha; P ackers N ational B ank of Omaha, and the Omaha N ational Bank. F re e gifts and refresh m en ts w ere dispensed to visitors. GROUP REPORTS . . . (C ontinued from page 83) th e new w h eat p rogram could help th is area; tim e w ill tell. W e have en joyed an open w in te r and have re cen tly received nice m o isture w hich w ill help s ta rt th e w h eat and grass crops. Feed supplies seem adequate. Beet and bean crops w ere good w ith * " bean prices h ig h er th a n usual. Oil activ ity in the panhandle is som ew hat * less th a n previously b u t still a m ajor ^ contrib u tin g economic factor. Various sm all m an u factu rin g com panies are * helping balance the econom y in a num ber of our area tow ns. ■* ■ + In te rsta te 80 construction is fu r nishing em ploym ent and everyone is looking forw ard to its com pletion for an additional im pact from tourism . B ank deposits are generally up; how ever ag ricu ltu ral credit dem and is con tin u in g an upw ard spiral w ith the size of individual operations i n c r e a s i n g each year. * * Resigns at Beatrice UNIVERSAL ASSURORS INC. er u in a eb ra ôL na and lA J e â te rn Representatives: John Micek Jack Flynn Dick Selvey Jerry Bush Don Drews Credit Life Vendors Single Interest Mobile Home Non-Filing Directors Liability 365 N. Saddle Creek Road ow a Omaha, Nebraska THANK US TO Phone 558-9000 YOU K eith R oberts, w ho has been w ith A the B eatrice N ational Bank, Beatrice, for 31 years, the last tw o as executive , vice president, has resigned his posi tion. J>A < McKibbin Honored H. L. M cKibbin, vice p resid en t of Y the B ank of Gering, p resid en t of the M inatare State Bank, and presid en t of the N ebraska B ankers A ssociation, re^ cently w as honored as the “O utstand ing Boss” of th e y ear by the G ering , Jaycees. FOR HE L P I NG GROW EACH YEAR! United States Check Book Company P. O . B O X N o r t hfor w eFRASER s t e r n B a n k e r , A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3644 OMAHA, NEBRASKA 68103 89 Any correspondent bank is only as ¡good as w hat it will do for you. Try us. y V ; First National Bank ; of K ansas City ■i -f10th & Baltimore, Kansas City, Mo. \ M e m b e r Federal D ep o sit In su ra n ce C o rp o ra tio n * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, A p ril, 1971 90 N ebraska N ew s To Preserve Omaha H istory A n effort to preserv e som e of Oma h a ’s h isto ry w ill be m ade w h en in te rio r w o rk gets u n d erw ay a t th e 22sto ry F irs t N ational B ank b uilding at S ixteen th and Dodge Streets. W hile w o rk has been p ro g ressin g on th e stru c tu re and th e outside of the b ank building, b an k officials have been collecting bits and pieces of fu rn itu re , fireplaces and doorknobs from old Om aha offices and hom es, said Thom as L. Davis, F irs t N ational m ark etin g officer. “The reason w e’re doing it is to p re serve som e of th e h u n d red y e a rs of h isto ry we have in O m aha,” he said. “The th em e w ill be carried out th ro u g h o u t th e building.” Some of th e fu rn itu re , doors and wood panelin g is being stored in th e basem ent of th e b a n k ’s drive-in a t th e H ilton H otel p a rk in g garage. Some is in a hom e used for storage by Jo sly n M useum n e a r th e F lorence W ater P u m pin g Station. Mr. Davis said th e b an k has sal vaged such th in g s as doorknobs, g ra n ite and statu es from th e old Postoffice Building, dem olished to m ake w ay for th e F irs t N ational-H ilton C enter, p a n eling from fireplaces a t th e old F irs t N ational B ank b uilding a t T h irte e n th and F a rn a m Streets, fixtures and p an eling from th e old City H all and fu rn i tu re from old Om aha homes. The b ank reaped a h a rv e st of h isto ri cal m aterial from a house on th e n o rth w est co rner of Tw enty-fifth and Dodge Streets, w hich w as razed about a year ago. In th e lib rary of th e house, w hich yielded bookcases and stained glass w indow s for th e new bank, B yron Reed, th e Om aha real estate m an, no tarized th e b a n k ’s application for a n atio n al b ank c h a rte r in 1863, Mr. Da vis said. The house also once served as the first hom e of Boys Town. * * * Donald J. Murphy, president, N o rth w estern N ational Bank, Omaha, p re sided over th e noon luncheon at the Mid-America L ivestock F o ru m held re cently a t th e Omaha H ilton Hotel. Mr. M urphy is a d irector of th e AgriB usiness Council, Om aha Cham ber of Commerce, and th is y e a r’s them e w as titled “T he L ivestock Game W in or L ose?” T he featu red speaker for the ev en t w as John Milton, a ssistan t foot ball coach of th e N ebraska No. 1 foot ball team . P anel discussion for the m orning session w as “H og P roduction and Feed-^ ing.” M oderator w as Creighton Knau of th e N ational P o rk P ro ducers Coun cil, and th e afternoon session w as “Cat tle Feeding for Profit,” w ith Modera-*' tor Dr. Frank Baker, chairm an, anim al science departm ent, U n iversity of Ne braska. * * * * The prom otion of tw o officers in th e > tru s t division a t th e U nited States N ational B ank w as announced by b a n k ^ P resid en t Edward W. Lyinan. J. A. M I L L E R You are cordially invited to visit our home office whenever you are in Lincoln We are p ro u d th a t . . . . . . m ore th a n 140 N ebraska bankers re p re s e n t th e Union Insurance C om pany w e a re c e le b ra tin g our 8 5th y e a r o f insurance service to agents and p o lic y h o ld e rs . . . assets a re ten m illio n d o lla rs and p o lic y h o ld e rs ' surplus o v e r fiv e m illio n d o lla rs . . . w e o ffe r sound insurance p ro te c tio n a t lo w c la im s e ttle m e n t co st w ith p ro m p t UNION INSURANCE COMPANY M aurice R. Gerleman, P r e s i d e n t Robert G. W alters, S e c r e t a r y N orth w eFRASER s t e r n B a n k e r , A p r i l , 19 71 Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _ John A. Miller has been nam ed vice presid en t and Ben W. Stanislav has been prom oted to tru s t officer. Mr. Miller, w ho has 10 y e a rs’ expe rience in th e in v estm en t field, has be- < come head of th e in v estm en t d e p a rt m ent, assum ing th e duties of Vice S Home Office o f UNION INSURANCE COMPANY a t 14th & Que Sts., Lincoln, Nebraska . . . B, W . S T A N I S L A V John V. Head, S e n i o r V i c e P r e s i d e n t and G e n e ra l C o u n sel r N eb ra ska N ew s P resid en t Henry B. Pierpont, w ho re tired M arch 31. A g rad u ate of th e U n iv ersity of Ne brask a at Omaha, Mr. M iller has been a tru s t officer of th e b an k since 1967. A native Om ahan, he grad u ated from Benson H igh School in 1951, and served w ith the U. S. A rm y d u rin g th e K orean conflict. Mr. Stanislav, a certified public ac countant, will continue as m anager of the tax d ep artm en t in th e tr u s t divi sio n . A Sioux City, Iowa, native, he sp en t nearly four y ears in th e U. S. A ir F orce before en terin g C reighton U niversity. * He gradu ated from C reighton’s College of B usiness A dm inistration in 1958. P rio r to joining U. S. N ational in 1969, r-he w orked in th e field of public ac counting. * * * A nnouncem ent w as m ade recently by Dr. Joseph Soshnik, p resid en t of the U niversity of N ebraska, Lincoln, th a t he w ill be vacating th a t post some tim e this sum m er to become a vice president with K irk p atrick , P e t tis, Sm ith, Polian Inc., Om aha-head q u artered investm e n t banking firm. H is w o rk w ith th e Om aha investm e n t banking J. S O S H N I K firm in th e field of m unicipal financing appeals to him, r Dr. Soshnik said. “T here has been ex hilaratio n in m y job as a u n iv e rsity f- ad m in istrato r,” said Dr. Soshnik, “b u t th ere is exhilaration for m e also in p u ttin g to g eth er a m ajor piece of re v enue financing.” r C om m enting on Dr. S oshnik’s com„ ing affiliation w ith his firm, Donald L. Pettis, ch airm an of th e board of Y K irkpatrick , P ettis, Sm ith, Polian, said, “Our selection couldn’t have been better. Dr. Soshnik will be re tu rn in g to fam iliar financial fields. H is depth ’ of experience in reven u e financing will y be extrem ely valuable to us, or any in v estm en t banker, for th a t m a tte r.” i- * * * The F a rn a m S treet lobby of Oma h a ’s U nited States N ational B ank has become one of the city ’s m ost popular spots for custom ers to linger w hile looking a t th e v arious ex trao rd in ary professional and hobby displays w hich -» have been exhibited th e re since th e b a n k ’s new building opened last sum mer. R ecently a historical collection of original autom obile draw ings by Tad Burness, a San Jose, Calif., a rtist, be came the latest display. V https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 91 O N E S P E C IA L F E A T U R E in T he O m ah a N a tio n a l B a n k ’s new b u ild in g is th e e s ta te a n d trust- d iv isio n re c e p tio n a re a , su rro u n d e d b y th e glass-enclosed c o n fere n ce a re a s. The offices of The Omaha N ational B ank have been selected by Adminis trative Management Magazine as a w in n er of the annual “Office of th e Y ear” aw ard. The publication an nounced th e choice in its April issue. Frank O. Starr, presid en t of The Oma ha N ational, m ade the announcem ent in Omaha. A ltogether, nine w in n ers w ere se lected from am ong the m any A m erican offices opened for use in 1970. The Omaha N ational B ank opened its new b ank facilities in Jan u ary , 1970, in th e W oodm en Tower. In stitu te d by the m agazine 21 years ago, th e aw ards encourage higher stan d ard s of business effectiveness th ro u g h good office design. Mr. S tarr, The Omaha N ational p res ident, expressed his appreciation to Administrative Management for the honor the m agazine bestow ed on the b an k ’s offices. “I t ’s g ratifying for us at The Omaha N ational to be singled out from am ong so m any new offices in the county for this aw ard,” said Mr. S tarr. A spokesm an for the m agazine said th a t the b o ard’s judgm ent is based on suitability, flexibility, habitability, and advancem ent of the adm inistrative function th ro u g h innovations in office design, system s planning and the like. M onthly articles on the w inning of fices w ill ru n th ro u g h the balance of th e year. No publication date has been set for the story of The Omaha N ational’s w inning offices. Administrative Management is a n a tional m agazine subscribed to by m ore th an 56,000 executives w ith responsibil ity for office operations, planning, equipm ent and personnel. T he draw ings, w hich are detailed replicas of autos from the p ast to the p resent, also featu re in terestin g facts about th e cars such as engine sizes, th e num b ers produced, selling prices, m echanical inform ation and popular nicknam es. Mr. B urness originally created the draw ings as syndicated features for new spapers. T hey have appeared in some 135 n ew spapers across the coun try, including the Omaha Sun new spa pers. It was from seeing the draw ings in th e W est Om aha Sun th a t A ssistant Vice P resid en t Bob Satrapa, w ho has responsibility for th e F a rn a m lobby display program , got his idea for the display. On contacting Mr. B urness, Mr. Satrapa learned this w as the first tim e th e a rtis t had been approached by a b ank to show his original draw ings. The exhibit includes 24 original penand-ink draw ings on 8 x 10 inch cards. The earliest subject is a four-cylinder Panhard-L evassor w ith a rear-end door, built in 1899 in Paris, France. O ther draw ings in the exhibit, tre a t such unique antiques as the 1911 eight w heeled Reeves “O ctoauto”; the long, low 1930 R uxton (w hich features “front w heel drive, body 10 inches low er th an m ost cars, and horizontal bands of v ary in g hues,” on its exterior, accord ing to the a rtis t’s caption); the classic 1934 P ackard convertible, and the 1950 “Bullet-Nosed” S tudebaker (“so far out it’s in,” says the caption). N orth w estern Banker, A p ril, 1971 <J2 c o m c o r p r e m l s e p mm t o B e n y d Q o u e n r t PfiHSIOn 2nd b a n k in g H ProLoans fit^™g p i c t u r e l |__Data Processing 'X.-: :J -r JOE S N Y D E R Vice President R O BERT REED Vice President VERLO N B R ITT C o rrespondent Bank O ffice r Bankers Trust call 515-283-2121 Digitized FRASER N o for rth w e s t e r n B a n k e r , A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTH AND LOCUST. DES MOINES " t h e p a c e s e t t e r b an k' Memter redera,ReserveSys,em^ ^ ^ 93 Woodbine Bank's Ag Day Iowa N EW S J. H. REDMAN President * A, E. LINDQUIST, JR. Exec. V. P. Port Dodge Des Moines Home Slate, Jefferson F o u r prom otions have been an nounced at th e Hom e State Bank, Jef' ferson. Jo h n M. (Mel) S handa has been p ro m o te d from vice president, cashier 4 and tru s t officer to executive vice president and tru s t officer. >- Replacing Mr. Sm ith as cashier is Douglas M cDermott. J. M . S H A N D A D. M c D E R M O T T x Mr. Shanda has been w ith the b an k since 1952, sta rtin g as farm service director, and becom ing a ssistan t vice ^ p resid en t in 1957 and vice p resid en t and cashier in 1962. * Mr. M cD erm ott w as w ith th e U nion State Bank, W in terset, from 1963-65, > a n d the C itizens Savings B ank, Sac City, from 1965 to 1969, becom ing cash i e r th ere in 1967. He joined Home S tate in 1969 as assistan t cashier. In addition K erm it B ullard and Rog,e r Scott have been m ade loan officers. Mr. B ullard w as form erly an assistr a n t cashier and Mr. Scott, m anager of the in stallm en t loan d epartm ent. Y Changes at Taintors Savings Claire P hillips has been prom oted from executive vice p resid en t to p resi dent of th e T ain to r Savings B ank, New + Sharon, as announced earlier in th e N orthwestern B anker . >- In addition, Mrs. R ay (H elen A nn) W oods w as elected vice president. Gordon Hull, Mrs. K enneth (B everly) Klein, and Mrs. Jack (B eth) Sm ith " w ere elected assistan t cashiers. * Mr. Phillips succeeds O. H. Pothoven, w ho re tire d as p resid en t and a is now chairm an. Mr. P hillips joined th e bank in 1936. Mrs. W oods has been an a ssistan t Mcashier. A. C. at Humboldt Trust ' R ichard M ikelson has been elected https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The F irs t N ational B ank of W ood bine recently held its A nnual A gricul tu ral Day, w ith a program on farm ing for the m en and hom e economics for the women. On the m en ’s program , Dr. H. L. Self of Iowa State U niversity of Iowa spoke on Beef Cows in Iowa, and Dale H ull, also from Iowa State, spoke on B uilding New and Rem odeling Old an a ssista n t cashier at the H um boldt B uildings for F arro w in g and Pig N urs T ru st and Savings Bank, H um boldt. ery. Jay AVest of Iowa State spoke on the prospects of corn blight in 1971. He is a loan officer and has been w ith In the afternoon, Dr. Self spoke the b an k since last July. on P astu re M anagem ent R esearch and Mr. W est discussed G rain Sorghum Elected at Osage Bank Production. Two new directors and several new The program for the ladies included officers have been elected at the a discussion of oil p o rtra it painting, a Osage F a rm ers N ational Bank. E. A. H eiden, w ho has served as style show, and a program by Lyle president, w as elected chairm an, and DeMoss, an Omaha television personal L avern (Bud) F u n k , a local farm er, ity. and Sam Holcomb, operator of the Speaks at Conservation Dinner D aylight Store in Osage, w ere elected Oliver A. H ansen, presid en t of the directors. L iberty T ru st and Savings Bank, Du M artin F abricius is the new p resi ran t, w as recently the featured speak den t of th e bank, having served as er a t a banquet of the W apello County vice president. Soil C onservation D istrict in W est G erald H eiden, cashier, has also been Union. given th e title of vice president, and Mr. H ansen is also a director of the J e rry Seifert w as elected a vice p resi F arm ers Savings Bank, W est Union, dent. and is chairm an of the livestock in d u s try com m ittee of the Iowa B ankers Heads ‘Young Iowan s’ Program Association. He is a p ast p resident of David L. M orris, vice presid en t and the IBA. m anager of the AVaukee office of the B ren to n State Bank of Dallas Center, New Farm Representative has been nam ed corporate coordinator Jack Gowing recently joined the for a new program of B renton banking staff of the Security T ru st & Savings services for young adults. Bank, Shenandoah, as ag ricu ltu ral re p The services, designed specifically resentative. Mr. Gowing has been as for th e 18-35 age group, are called the sociated w ith KMA radio as farm direc “Young Io w ans” program . I t is being tor. offered at all B renton B ank locations. Mr. M orris joined the B renton or New A.T.O. at Marshalltown Mrs. Ja n e t D aters has been nam ed ganization in 1964. assistan t tru s t officer at th e F idelity Bank, M arshalltow n. She has been Bank Plans Art Show The Colum bus Ju n ctio n State B ank w ith th e bank since 1962 and has as is sponsoring its fifth annual a rt show, sisted Orville T h urston, vice p resident w ith en tries invited from Louisa, and tru s t officer, for th e p ast year. H enry, M uscatine, W ashington, and Changes at Redfield Des Moines counties. Lee Struble has resigned his posi E n trie s are being judged by Prof. H ow ard Rogovin, p ain ter and teacher tion as m anager of the Redfield office in th e School of A rt at th e U niversity of th e Dallas C ounty State B ank w hich of Iowa. P rizes of $150 for first place he has held for over five years. A lto and $100 for second place are being g eth er he has been w ith th e B renton aw arded. The paintings w ere dis B ank system for over 13 years. Mr. S truble has accepted a position played in the bank M arch 19-20. as cashier of the C ornhusker B ank in Lincoln, N ebr. New Bank Hours L eonard L indsay has assum ed the R. A. Shultz, p resid en t of the F irs t T ru st and Savings Bank, D avenport, position of m anager at th e Redfield has announced a new schedule of b ank b ran ch office. He comes from Mchou rs for th e T hird and B rady S treet Comb, 111., w here he had tw o and onelocation. In addition to reg u lar hours, half y e a rs’ experience in banking be th e b an k w ill be open every M onday fore his graduation from W estern Illi nois U niversity. night from 6:00 to 8:00 p.m. N orth w estern B anker, A p ril, 1971 94 Io w a N ew s Gulden . I nniversaStale /lank Conference. A pril 14 J. R. T A N K C. J. H O W A R D of th e F a ir c re d it R e p o r t i n g Act, correspondent bank relationships, th e Small B usiness A dm inistration, th e Iow a legislature, the U niform Com m ercial Code, and c u rre n t legislation w ill hig h lig h t th e Golden A n n iv ersary State B anking Conference sponsored by th e F e d e ra tion of C ounty B an k ers A ssociations and the Iow a Ju n io r B ankers Associa tion, to be held at Jo h n n y & K ay’s H y att H ouse in Des Moines, W ednes day, A pril 14. Besides being th e Golden A nn iv er sary of th e Conference it w ill be th e 31st an n u al m eeting of the Iow a J u n ior B an k ers Association. C hristopher J. H egarty, p resid en t of the C h arter S treet C orporation, San Francisco, w ill be th e featu red speaker at th e noon luncheon. Mr. H egarty, a nationally-renow ned s p e a k e r , w i l l speak on “W hat M otivates You To day?” A dvance reg istratio n for th e confer ence is $5. R eg istratio n at th e door w ill be $6. F o r those w ho pre-register, badges and tick ets w ill be ready a t th e reg istratio n desk upon arrival. The com plete p rogram follows: D is c u s s io n s PROGRAM A.M. 8:00 9:00 C. H E G A R T Y R eg istratio n — Lobby, South Side of M ain Building. L ow er Lobby (stairw ay from m ain lobby) Conference Called to O rder— L ow er Lobby. C hairm an — Jam es R. Tank, F ed eratio n of C ounty B ankers https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9:15 10:00 10:25 10:50 J. F. G R U E N W A L D the IBA C orrespondent Bank R elationships Committee: Jack E. Beets, vice president,*1 City N ational B ank & T ru st Company, K ansas City, Mo. Don C. A nderson, second vice- president, C e n t r a l N ational Bank, Chicago, 111. Jo h n A. Diefendorf, vice p resi dent, Security N ational Bank,* Sioux City, Iowa. W illiam B. A ldrich, vice p resi dent, A m erican N ational B ank* & T ru st Company, Chicago, 111. R obert Stokes, a ssistan t cash ier, F irs t N ational City Bank, New York, N. Y. R obert G. Ziem er, vice p resi dent, N o rth w estern N a t i o n a l Bank, M inneapolis, Minn. ^ Recess for L unch — M onterery Rooms. Associations; president, Scott C ounty B ankers Association; executive vice president, Cen tra l T ru st and Savings Bank, 11:45 E ldridge, Iow a (Group 8). P.M. W ord of W elcome and R em arks 1:00 Luncheon P ro g ram —Presiding,'5' —J. H. Redm an, president, Iowa J. C. Blackford, re tirin g presiIow a B ankers Association; p res dent, IBA; president, Union ident, The State Bank, F o rt B ank & T ru st Company, Ottum -y Dodge, Iowa. wa. W elcome to Des Moines—Thom “W hat M otivates You Today?” as H. U rban, M ayor of the City —C hristopher J. H egarty, p resi of Des Moines. dent, C h arter S treet Corpora-" The A ssociated C redit B ureaus, tion, San Francisco, Calif. Inc., P resen t the F a ir C redit 1:45 L uncheon w ill adjourn. Con R eporting Act—C harles Schaf ference w ill reconvene on th e > fer, p ast p resident of the Asso low er level. ciated C redit B ureaus, Inc.; 2:00 P residing—C. J. H ow ard, p resi president, C redit B ureau of Ma dent, Iow a Ju n io r B ankers As son City. sociation; c a s h i e r , H um boldt A ssisted by Jo h n H. Robb, p res T ru st and Savings Bank, H u m -, ident, C redit B ureau of Des boldt, Iowa. Moines. W ord of W elcom e—T hom as H. * Small B usiness A dm inistration H uston, vice president, Iowa W ith a New Look—E d g ar J. B ankers Association; p resid en t,* Koch, d istrict director, Small Colum bus Ju n ctio n State Bank, B usiness A dm inistration, Des Colum bus Junction. Moines. 2:10 The Iow a L egislature — Honor-* Coffee Break. able George E. O’Malley, a tto r P anel D iscussion—Do You as a ney at law, Des Moines. r U nit B ank M ake the B est and 2:45 P anel—A Review of th e UCC. ^ Most Efficient Use of Your Cor M oderator, Alfonse M. Squilresp o n d en t R elationships? lante, acting dean, College of M oderator — Jam es F. GruenLaw, D rake U niversity, Des wald, chairm an, IBA Corre Moines. spondent B ank R elationships P anel M embers: Gifford M. Committee; vice president, Dav en port B ank and T ru st Compa ny, D avenport. BANKING CONFERENCE . . . P anel M em bers — M em bers of (T u rn to page 96, please) 95 Correspondent Banking: a personal view "Bank operations should be an important source f profits" Bill Hamilton * f y Bill Hamilton, who’s now our man serving northeastern Minnesota, is a firm believer in building up profits by holding down operating costs. And he’s put this principle into practice with good results. Before joining our Correspondent Division, Bill spent nine years in our Operations Department. It was his job to scrutinize our internal functions in order to cut costs. Now his experience is available to the bankers in his territory. If you’re looking for new ways to make your bank more profitable, Bill Hamilton is a good man to talk with. He’s the newest reason why we’re the Bankers’ Bank of Mid-America.. .612/370-4141. V y ■ » t First M inneapolis Has an Idea for You Correspondent Bank Division • First National Bank of Minneapolis • Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w estern B anker, A p ril, 1971 96 Io w a New s 1 U7 1 ioivu (¿roup M e e tin g s G ro u p D a te 1 11 6 10 7 8 5 2 3 4 P la ce Sioux City Burlington Des Moines Centerville Iowa City Maquoketa Council Bluffs Okoboji Clear Lake Dubuque February 12 February 19-20 May 10 May 11 May 12 May 13 May 24 May 25 May 26 May 27 BANKING CONFERENCE . . . (C ontinued from page 94) Strand, UCC D irector, Office of th e S ecretary of State, Des Moines. W ilbur N. Bum p, Iow a Search, Inc., Des Moines. H a rry T. W atts, atto rn e y at law, Dickinson, T hrockm orton, P a rk er, M annheim er & Raife, Des Moines. M att R ohner, recorder of Du buque County, Dubuque. W illiam C. Hess, assistan t to the su p erin ten d en t, State B anking D epartm ent, Des Moines. 3:40 B rief Discussion of C u rren t Leg islation — W endell B. Gibson, g eneral counsel, Iow a B ankers Association, Des Moines. 4:00 R ep o rt of N om inating Com m it tees and E lection of Officers — F ed eratio n of C ounty B ankers A ssociations, Iow a Ju n io r B ank ers A ssociation. 4:15 A djournm ent. Dows Bank’s 25th Year An open house w as held recen tly by th e F a rm e rs State B ank of Dows in celebration of its 25th y ear of opera tion. A bout 500 people attended the c 3 e cl<e r expanded lock box facilities, loan q u ar ters, and teller stations. event. R efreshm ents w ere served, door prizes given away, and draw ings held for several valuable prizes, including a television set. Union Story Plans Expansion U nion Story T ru st and Savings Bank, Ames, has announced plans to expand its N orth G rand Shopping Cen te r branch. P resid en t A. W. L ucht said m ore definite plans w ill be an nounced later. Shenandoah Bank Directors Two new directors have been added at th e City N ational Bank, S henan doah. T hey are W ilbur Cam bier, a C hevrolet dealer, and W ayne Stevens, w ho has diverse business in terests in Shenandoah. T hey fill vacancies cre ated by th e deaths of H a rry E. Ross and George W elch. Poweshiek County National Max A. Sm ith, presid en t of the Pow eshiek County N ational Bank, G rin ned, has announced th a t th e bank plans to acquire tw o parcels of land w hen the c u rre n t leases on them ex pire. The properties, occupied by Iow a S outhern U tilities and Gifts In te rn a tional, w ill enable the b ank to offer &e ownie M u n icip a I B o n d s nc, Walker Slate Bank Directors x Two new directors have been added at the W alker State Bank, W alker, * increasing th e board to seven. They are N orb K rob and Jo h n F raney. * New Parking Lot Office W illiam C. Hess, a ssistan t to the* Iow a State S u p erin ten d en t of Bank- „ ing, recently announced th a t the De p artm e n t of B anking had issued a cer^ tificate for a new park in g lot office for the C entral State Bank, M uscatine.* v Capital Stock Increases The D epartm ent of B anking has re cently announced th e follow ing in-( creases in capital stock: City S tate Bank, C entral City, from „ $45,000 to $90,000. Defiance S tate Bank, Defiance, fromx $75,000 to $100,000. Iow a State Bank, Iow a City, from $500,000 to $750,000. U nion State Bank, Monona, from $52,500 to $105,000. v Monticello State Bank, Monticello, from $400,000 to $800,000. * R enw ick State Bank, Renwick, from $50,000 to $100,000. + P a rk e rsb u rg State Bank, P a rk e rs burg, from $75,000 to $150,000. New Motor Bank at LeMars Two buildings th a t housed the F irst r N ational B ank of LeM ars drive-in fa-V cility along w ith a law office, have been dem olished to m ake w ay for a new Ben F ra n k lin Store w hich will have a new m otor b an k facility at-< tachecl to it along the south wall. New A.V.P.s at Maquoketa G ary B ennis and D elbert J e tte r have ^ been prom oted from a ssistan t cashiers to a ssistan t vice p residents at the Ma-f quoketa State Bank, M aquoketa. Waverly Directors 711 Insurance Exchange Building Des Moines, Iowa 50309 Phone 515 243-5188 N orthw estern Banker, A p ril, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1971 * * H en ry W. Busch and Jim A rens have been elected directors at th e F irs t Na- * tional B ank of W averly. Mr. Busch is a farm er and real estate agent and* Mr. A rens is vice p resident at the , bank. 97 -< For fast service on credit, - talk directly to the "Inside Men” (O U R NEW PHONE N UM BER IS (312) 443-2774) - * v Ÿ JACK RAMEY TOM ROTH ' y The ‘Inside Men” of La Salle’s Correspondent Banking Division have to be experts in all forms of credit, and they are. Call any one of them directly when you need help in the Overline Area or have questions about unusual credits. Each “Inside Man” is authorized to handle all participations, bank carry loans, and per sonal loans to bankers. PHIL BUTLER RICK ANDERSON You don’t have to wait while your call is switched to an officer you never heard of so that you can explain the problem all over again. You get direct, fast action so you can give your customers faster service. Call Tom Roth, Jack Ramey, Rick Anderson or Phil Butler, and find out how fast action on your loan requests can be. Our new phone number is (312) 443-2774. The “Inside Men” help these “Outside Men” serve you better r CY KIRK MAX ROY LaSalle.. .the bank on the move © A FULLS, SERVICE BANK, LA S A LLE NATION AL BANK, LA SALLE BANK BUILDING, 135 S. LA S A LLE ST., CHICAGO, ILLINOIS 60690 • PHONE (312)443-2774 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r, A p r i l , 1971 I o w a Ne ws 98 Mr. Klise w as a rep resen tativ e w ith Lam son B rothers & Com pany for two and one-half y ears and previously was tru s t officer at Security Savings Banlc" in M arshalltow n. He plans to con tinue to specialize in servicing his ex isting clientele in the Marshalltown«, area. A g raduate of the U niversity of Iov^a and Jo h n M arshall Law School, Mr. Klise is a m em ber of the C entral A rt A ssociation in M arshalltow n, th e Ioyja H eart A ssociation and th e Elm wood C ountry Club. Ile s M o ines N ews m ents of the b ank and its offices, are descriptive of th e services offered by the v arious departm ents. The purpose of th is sw eeping change in titles th ro u g h o u t the b ank is to m ake it easier for Iowa-Des Moines custom ers to quickly find the person best quali fied to help them . The titles serve to b e tte r identify th e officers. Sixty-five officers of the Iowa-Des M oines have been given these new ti tles. The Iowa-Des Moines N ational B ank is the first b ank in this area to adopt this descriptive concept in th eir title policy. * * * The election of a new officer for C entral N ational B ank and T ru st Com pany of Des Moines w as announced by B. C. Grang a a r d , chairm an and president. D i c k C. V a n Xante w as nam ed a ssistan t tru s t of ficer. F or the past 15 y ears he has b e e n practicing law w ith his fa ther, Dick C. Van d . c. v a n z a n t e Zante in Pella, Iowa. He also served as Pella city atto rn ey for seven years. L. C. COBB R. J. L Y T L E He is a graduate of C entral College, Mr. Cobb is a grad u ate of G rinnell 1952 B.S., and D rake Law School, 1955 College and th e State U n iv ersity of J.D. He is a m em ber of the Iow a State B ar Association, M arion C ounty Iow a Law School. He joined th e bank B ar A ssociation and Delta P hi Law in 1956 as an estate ad m in istrato r, w as elected a tru s t officer in 1962 and a F ra te rn ity . Mr. Van Z ante recently w as m a r senior tru s t officer in 1967. ried to th e form er Shirley Borland, Mr. L ytle is a Des M oines nativ e and atten d ed N o rth H igh School and w ho is the editor of the M eredith Cor Sim pson College in Indianola, joining p oration publication, H om e F u rn ish the b a n k ’s in stallm en t loan d e p a rt ings Ideas. * * * m en t in 1968. Stacy R. Henderson, m anager of the Mr. Fitzgibbon also announced a new title policy being p u t into effect Des Moines office of Piper, Jaffray & at th e Iowa-Des Moines and at its of Hopwood Incorporated, announced the ap p o intm ent of Gary lvlise as a regis fices located at E a st 25th and E uclid and B eaver and Douglas. The new ti tered rep resen tativ e in th e Des Moines tles, given to officers in all depart- office. OLLOWING th e board of d irecto rs’ m eeting of the Iowa-Des Moines N ational B ank, John R. Fitzgibbon, presid en t announced th re e prom o tions. Richard W. Carey and Lewis C. Cobb of th e tr u s t division w ere pro m oted to vice presid en ts and Jack Lytle w as elected an in s ta llm e n t loan officer. Mr. Carey is a grad u ate of W estm ar College in LeM ars and th e U ni v ersity of Iow a Law School. He joined th e bank in 1955 as an es tate an aly st and R. W. CAREY w as e le c te d a tru s t officer in 1962 and a senior tru s t officer in 1967. F o r t h w e s t e r n B a n ke r, A p r il, 1971 Digitized forNFRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B. C. Grangaard, presid en t and chair m an of th e board of C entral N ational B ank and T ru st, w as one of six new m em bers selected to serve two-ye^r term s on th e regional advisory cony, m ittee on banking policies and prac tices for th e T enth N ational B ank Re gion. T Clarke County State v K eith W. R ichard has been elected p resid en t of the Clarke C ounty State* Bank, replacing J. W aid Lentz, who has retired. E a rl C urtis has beeh elected executive vice president. Changes at Glenwood x Lyle Sell has been elected to the board of directors at th e Mills County State Bank, and R ichard B arnes, who-, has been a ssistan t vice p resident of the b ank for tw o years, has resigned to become m anager of the Pella Na tional Bank, Pella. e Elected at Dyersville Ted Goeres recently took up d u tie s1 as a ssistan t vice president, loan officer, and farm con su ltan t at th e D yersville N ational Bank, D yersville. t Bye Elected at Holstein B ruce Bye w as recently elected pres ident of th e H olstein State Bank, Hol stein. L oren G oettsch and Sterling H ansen w ere prom oted to assistant cashiers. Regional Advisory Committee Joe T. G rant, presid en t and chair m an of th e F irs t N ational B ank of Sioux City, w as recently appointed to a two-year term on th e Regional Ad vis-,« ory Com m ittee on B anking Policies and P ractices for the T en th F ed Dis> trict. j Thurman State Bank * 1 Claude W. Sheldon w as recently elected a director of th e T hurm an State Bank, T hurm an. . Som e . of our people are m issing We wanted to run a picture of our correspondent department in a group. So you could see what they looked like. But we couldn't find a time when they were all in. You see, our correspondent department believes in service. On-the-spot service. So they travel a lot. Day or night to serve our correspondent banks. Person-toperson service. If that’s the kind of service you want from a correspondent bank, call. Then our men will call on you. Maybe we won't get the picture . . . but you will. You don’t need us. We need you! “C 99 Central National Bank 8-Trust Company LOCUST AT SIXTH AVENUE, DOWNTOWN DES MOINES, PHONE 243-8181. MEMBER FDIC. Call us on our new, toll free Watts num ber: 8 0 0 -3 6 2 -1 6 1 5 N o r t h w e s t e r n B a n ke r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 100 Iowa News M on on a H an k ( o n ip leles H uU dunj. H o ld s O pen H E U nion State B ank, Monona, has com pleted construction of its new building and has held several show ings of th e stru ctu re. The b an k displayed its new facilities to area b an k ers on M arch 25 w ith a buffet dinner. On M arch 27 a luncheon for stockholders w as held, and from 2:30 to 7:30 p.m., th e re w as an open house for th e general public. Ron M ulford of Uni-Service, Inc., New H am pton, designed th e building and his com pany w as th e general con tracto r. The new v au lt door and drive-up w indow w ere supplied by Diebold, Inc., and th e tim e-and-tem perature sign by T riad Sign Service, R ochester, Minn. The new facility featu res a com m u n ity room w hich w ill be available T w ith o ut charge to groups in the com m unity. LeRoy C. D arby is president of U n ion State Bank. 25 Years in Banking H ow ard D. Longfellow, vice p resi den t and cashier at th e N ational B ank of Rockwell City, Rockwell City, re cently w as honored for his 25 years w ith the bank. Officers, directors and em ployees held a recognition dinner for him. Savings Bond Chairmen Two appointm ents as county ch air m en for the U. S. Savings Bond p ro gram have recently been m ade from ban k in g circles. B ernard D. Duben, executive vice p resid en t of th e Iow a State Savings — Our 51st year — THE CROP HAIL PROTECTION FARMERS PREFER STATEMENT of CO N DITIO N A t Close of Business December 3I ,1970 ASSETS U. S. Government Bonds . $2,838,204.02 Other Bonds ........................................................................................................... 1,893,088.14 Stocks ...................................................................................................................... 147,817.00 Accrued Interest, etc. 30,696.47 Cash in Bank & Home O ffice .............................................................................. 151,582.21 $5,061,387.84 TOTAL ADMITTED ASSETS . LIABILITIES $ 138,440.29 Reserve fo r Federal & State Taxes 334,162.24 Other Liabilities ................................ $ 472,602.53 TOTAL LIABILITIES ............................................. $ 200 , 000.00 Guaranty Fund ........................................ 4,388,785.31 Unassigned Surplus 4,588,785.31 Surplus to Policyholders .......... ....................................................................................... $5,061,387.84 $5,061,387.84 Securities carried at $390,000.00 in above statement are deposited with public authorities as as required by law. SQUARE DEAL INSURANCE COMPANY DES MOINES, IOWA 50308 N o r t h w e s t e r n Ba n ker, A p r il, 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lu tu a i Bank, Creston, has been appointed chairm an for U nion County. He re places Tom D ougherty w ho resigned recently because of ill health after 13 years as chairm an. V ictor M. M eyer, presid en t of th<^ Com m ercial T ru st and Savings Bank, C harles City, has been appointed chaifv m an in Floyd County, replacing Jim Olds. The appointm ents w ere m ade by Jay E. Tone, Jr., v o lunteer state chair m an of the program . ^ Arnolds Park Charter Denied < Collin W. F ritz, State S u p erintend ent of B anking, has announced th a t the D epartm ent of B anking has denied an application for a state b an k charter'* for the proposed “Okoboji M arine State B ank,” to be located in Arnolds Park. y A pplicants w ere listed as D. E. G rant, J. R. H arrison, Gail M. Richardsor^ Don K. E vans, R ichard C. R uth, Darlowe Oleson, J. H arvey De Vries, Ger- r aid L. Moeller, and A. K. Ruebel. * Midlands Corporation A new real estate affiliate, M idlands C orporation, has been form ed by th e F irs t N ational B ank of Council Bluffs. Dale Ball, presid en t of F irs t National, is also serving as presid en t of Mid lands. Mrs. Sylvia H all is serving as vice p resid en t of Midlands. One of th e first projects of M idlands is developm ent of a condominium, called M idtow ns Place, located at 401 E ast Pierce S treet in Council Bluffs. v The p roject consists of 20 two- and three-bedroom tow nhouses. M idland C orporation lists as its scope of objectives: com m ercial banking, consultant-packager for H.U.D. and^ conventional p r o g r a m s , com m unity service, land developm ent, building A project developm ent, construction su pervision for others and as principals,* real estate sales and prom otion, prop erty m anagem ent. Iowa News Joe M enges M akes L a rg e ite q n e s t t to tea #7. * rO E MENGES, th e w ell-know n pres- from th e local com m unity school for J ident of th e A lta V ista State B ank, his in te re st in education. Mr. Busse Alta Vista, and form er p resid en t and serves as tre a su re r of the school board tre a su re r of the Iow a B an k ers Asso and also had served as a m em ber of ciation, w ho died last Septem ber, has th e State Board of Public Instruction. Mr. Busse has served as p resid en t of ¿eft th e bulk of his estate to U pper the b ank for the p ast 12 years. In his Iow a U niv ersity in F ay ette, of w hich retirem en t, he w ill serve as a consult fee w as a tru stee. a n t in tru s t and estate w ork w ith an F u n d s from th e estate, w hich am ounted to n early a half m illion dol office on th e second floor of th e bank lars, w ill be used to build a two-fam ily building. duplex for U pper Iow a faculty m em b e r s and establish a tr u s t fund, the New President at proceeds of w hich w ill be used to fund Guaranty Bank & Trust the “Joe M enges G ran t in B usiness P ictu red here is D. B ruce Gibson, E d u catio n ” and buy books and m ate w hose election as p resident and tru s t rials for th e school’s library. officer of G uaranty Bank and T ru st Besides a tru s t fund for his wife, Com pany of Cedar R apids w as an Mr. M enges’ w ill also m ade a n um ber nounced in an earlier issue of the of charitable contributions in addition N o r th w ester n B anker. Mr. Gibson ’to th e U pper Iow a gran t. T hey include form erly w as ex ¿h e S h rin e rs’ C rippled C hildren’s H os ecutive vice p resi pital in M inneapolis, th re e churches, dent and tru s t of the W apsipinicon Council of th e Boy ficer. He received Scouts, and th e A lta V ista L ibrary. his B.A. degree v Mr. Menges w as a m em ber of the from the U niver U pper Iow a board of tru ste e s for 10 sity of Iow a in ’’years. 1954 and his J.D. degree from the 'y U n i v e r s i t y of Joins Montezuma Board Iow a Law School Stanley G. H u tchinson of M onte in 1959. He joined zum a has been elected to th e board of D .B . G I B S O N th e b a n k t h a t directors of The Peoples Savings B ank. sam e year. He is also a graduate of Jd e fills th e vacancy created by the *death in J a n u a ry of J. R. H utchinson, the G raduate School of B anking at the v who w as chairm an of th e board. P rio r U n iv ersity of W isconsin, Madison. Mr. Gibson succeeds Van V echten to serving as chairm an th e p ast few -¿years, Mr. H u tchinson had been p resi Shaffer, form er president, w ho w as d en t of th e b an k since it w as organ elected ch airm an of the board. Mr. Shaffer had served as G uaranty B an k ’s ized in 1946. p resid en t since its organization in * 1934. Kemsen Bank Donation In an earlier m eeting, stockholders < The R em sen Jaycees, w ith funds elected tw o new directors, D enver H. m ade available by th e F a rm e rs Sav Adams, p resident of Ogden and Adams, i n g s B ank of Rem sen, have u n d e r Inc., and T hom as H. P irnie, attorney. tak en a project to replace m any of th e tow n’s shade trees lost in th e w ind LeMars Bank Goes “On-Line” >storm last July. The sum of $1,000 has been donated The LeM ars Savings Bank, th ro u g h * by th e F a rm e rs Savings B ank to p u r the use of IBM ’s new est banking chase replacem ent trees and applica- equipm ent, now has direct access to " tions w ill be considered on a first- all of th e data processing possibilities of th e IBM 360 com puter in the Secu come, first-served basis. rity N ational B ank C om puter C enter in Sioux City. Delniar Bu^se Retires The new equipm ent, called a Rem ote The p resid en t of th e Citizens State « B ank in Oakland, D elm ar Busse, re T erm inal, is referred to as th e 1255/ tired recen tly a fte r com pleting 44 2770 D ata C om m unications System . The new equipm ent includes a m ag * years of service to th e bank. A d in n er in his honor w as held at netic in k reader-sorter, a keypunch m achine, a punchcard reader, a p rin t a Council Bluffs re s ta u ra n t b y the * board of directors and em ployees of er, and a data phone com m unication betw een the term in al and the com the bank. p u ter center. Special trib u te s w ere paid to him The term in al recently installed in for his services, including a plaque https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 101 th e LeM ars Savings B ank is one of the first to be used by a financial in stitu tio n in the U nited States. Mr. M ennen, presid en t of th e bank, said th a t his b ank is now using the Rem ote T erm inal for transm ission of all check ing account inform ation and th a t plans are being m ade to use the com puter for data control of savings, loan, and other b ank services. Inform ation is tran sm itted to and from the com puter by m eans of direct long distance telephone w hich p ro vides a flexibility not possible w ith the previous m ethod of sending inform a tion by punched tape of delivering the actual item s to th e com puter center by special carrier. Most im p o rtan t of all, stated Mr. M ennen, th e new data com m unications system allows the L e M ars Savings B ank to retain com plete control of th e actual item s. In addition to transm ission of data to the IBM 360 com puter a t th e Secu rity N ational B ank C om puter Center, the Rem ote T erm inal at th e LeM ars Savings B ank m ay be used for other routine bookkeeping procedures. One of the in terestin g features of the new transm ission system is th a t the Tele processor m onitors all tran sm itted data and autom atically retran sm its w hen it detects an e rro r in line tra n s m ission. Its audible alarm alerts the operator to situations w hich require m anual intervention. U pdated book keeping inform ation is fed back th ro u g h the com m unications system to the Rem ote T erm inal w here pre-pro gram m ed inform ation is p rin ted out for use by the LeM ars Savings Bank. Appointed at Centerville j. B radley Young, presid en t of the Iow a T ru st and Savings B ank of Cen terville, announced recently th e ap pointm ent of Jo h n J. (Jack) M arget of D ubuque to the position of executive vice president and election as a m em ber of th e b a n k ’s board of direc tors. A native of Carroll, Iowa, Mr. M arget sta rte d his banking career in 1949, after g radu ation from the U n i v e r s i t y of Notre Dame. P rio r to his m ost recen t positions as p resid en t of th e Key City B ank and T ru st Com pany of D ubuque and presi dent of a ru ra l W isconsin bank, Mr. M arget served as an assistan t cashier at Carroll County State Bank, Carroll, Iowa, and presid en t of the K eokuk County State B ank of Sigourney, Iowa, from 1955 to 1966. N o r t h w e s t e r n B a n ke r, A p r i l , 1971 102 I owa News W illiam s & P a rtn e rs of Glen E lly n ,> 111. Sub-contractors are S c h m i d t P lum bing of C harles City, Pfiffner* E lectric of Dewar, Iowa, and heating^ and air conditioning by M etal C o n tra c t tors, Inc., of Plym outh, Iowa. >. I ingley Bank Expansion A R C H IT EC T ’S D RA W IN G of proposed new building fo r the S ecurity B ank and T rust Company, Charles City. F ir s t S r r n r iii/. F ill/. F r is iSuililini/ t o u t r e e l s HE F irs t Security T ru st and Sav (seen in th e view above) and the other ings B ank, C harles City, recen tly from a 22-car park in g lot behind the aw arded th e co n tract for construction building. of its new building to the Moltz Con In th e park in g lot en try w ay w ill be stru ctio n Com pany, C harles City. a w alk-up service window. In one u n The contractor estim ates th e build u su al treatm en t, the ground w ill be ing w ill be com pleted late th is year. sloped dow n from the sidew alk to the The dim ensions of th e new b ank bu ild building to allow n a tu ra l lighting via ing w ill be 60 by 120 feet. On one end w indow s in th e basem ent. T his w ill will be a 10-foot extension for the also cause th e fro n t en try w ay to be drive-in w indow and th e three-lane “b ridged” over the sloping ground. drive-in facilities w ill take an o th e r 47 The new bank will be located ju st feet. Two of th e lanes w ill have re across C lark S treet from the new city m ote pneum atic service stations. The hall and, although it w as not specifical ground floor w ill have th e norm al ly planned th a t way, th e ban k w in facilities, te lle rs’ w indow s, b an k offi dows w ill carry out the arch them e of cer area, custom er lobby, tw o p riv ate the city hall. offices and one larg er room w hich can The b ank w ill be of brick construc be separated w ith a folding divider. tion w ith bronze w indow s fram ed in In th e b asem ent w ill be the book lim estone arches. At the east end of keeping departm en t, vault, d irecto rs’ the building w ill be some of the lot m eeting room , re st room s and a lunch left over for fu tu re expansion and, for room. On one side of th e building th e p resent, th is is envisioned as a w ill be stairs connecting th e tw o floors m in iatu re p a rk or re st area and will and on th e o th er side an elevator. One be landscaped w ith benches. e n try w ill lead in off of Clark S treet A rchitect for th e bank is Mayes, T JAMES C. SHAW, V. Pres. Ow e n p. McDe r m o t t , v . pres. ROBERT J. KIRKE, Pres. THOMAS L. WORMLEY. Exec. V. Pres. Silaw, jVfc D e r m o tt & f^jo. MUNICIPAL BONDS EXCLUSIVELY Underwriters and Distributors of County, City, School and Revenue Bonds Carl C. Riggs, p resident of the Ting* ley S tate Bank, has announced th a t the board of directors voted recently* to expand bank facilities and th a t the bank has negotiated purchase of th é adjacent building from Cecil Allen. The additional space w ill be used for* two p riv ate offices and a storage are^. A ccording to Mr. Riggs, the addition w ill have a new front, w hich w ill be», com patible w ith th e p re se n t building. P lans include low ering the ceiling, i n stalling new counters and m oving the bookkeeping d ep artm en t to a room in *’ the rear of the bank. The size of the insurance d e p a r t m e n t , w hich has show n a rapid advancem ent in th e last 17 years, w ill also be increased. The decor of the new bank w ill be in* blue tones w ith counters in druid oak. New v au lt doors and safety deposit * boxes are being installed to provide adequate b u rg lar and fire protection. < Com pletion of the new addition is expected to take about tw o m onths. I arm Program at Jewell The F arm ers State B ank of Jew ell and E llsw orth, in cooperation w ith the Iow a S tate U niversity E xtension Serv- * ice, recently p resen ted a program at Jew ell on c u rre n t farm topics. S taff m em bers at Iow a State p resen ted talk s, on crop altern ativ es for 1971, costs a n d ’ re tu rn s of various livestock enter-v prises, cu ttin g costs in today’s farm ing, and the im portance of fertilizer ' use, soil testing, and the new leaf analysis testing. * New Ag Rep at Belmond Jam es E. Chelesvig has been elected, an assistan t cashier and farm rep re sentative at th e F irs t S tate Bank, < Belmond. A holder of a B.S. in ag ri cu ltu ral business from Iowa State, Mr.’ Cheleswig, before com ing to Belmond, w as m anager of the N ew ark F arm ers G rain Company, N ew ark, 111. H Carroll County Promotions N orm a B rom ert and F e rn Lahey have been prom oted to a ssistan t vice^ presidents at the C arroll C ounty State , Bank, Carroll. A Council Bluffs Retirement 1018 Liberty Bldg. DES MOINES. N o r t h w e s t e r n B a n ke r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Phone 515—243-6119 IOWA 50309 W illiam P. Knox recen tly announced his re tire m e n t from th e board of direc-y tors of the F irs t N ational Bank, Coun cil Bluffs. He w ill now serve on th e » b an k ’s advisory board. Bankers Agree. . . / American Trust has what You want in a correspondent bank Services including: Transit Items • Bond Portfolio • Excess Loans Currency Shipments • Bank Operations • Collections Trust Affairs . . . BUT Have You Checked into the many ways American Trust Computer Services can help you? Call 319— 582-1841 and ask for our DecisionMakers. They'll have what CHRISTY F. ARMSTRONG Executive Vice President LEO F. KANE Senior Vice President ROBERT G. SCOTT Senior Vice President A m e ric a n T ru s t a n d S a v in g s B a n k DUBUQUE, IOWA Member FDIC, Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r, A p r i l , 1971 104 Iowa N e w s Kenneth Pillar Retires tional in 1963, becam e an officer of the K enneth B. Pillar, assistan t vice latter. presid en t of the F irs t N ational Bank He and Mrs. P illar intend to retire in Sioux City, recently retired after to th e St. P etersburg, Fla., area. earlier announcing his plans at a p arty held for him by bank officers and em Charles E. Mackey ployees. F u n eral services w ere held recently Mr. P illar has for Charles E. Mackey, assistan t vice been in banking p resid ent of the W est L iberty State for 48 years, s ta r t Bank, W est Liberty, w ho died while ing w ith th e F irs t driving his car in M uscatine. N ational B ank of Mr. M ackey had been w ith the bank Chicago in 1923. He joined Toy N a since its organization in 1954. He served in the N avy in W orld W ar II, tional B ank in and for m any y ears had been tre a su re r 1928. T hen after of the W est L iberty School D istrict. an in terim out of He is survived by his wife, Loletta, the ban k in g busi w ho has also been em ployed at the ness in S i o u x K, B. P I L L A R b ank for m any years. City, he joined the W oodbury C ounty Savings Bank, and after its m erger w ith F irs t Na- New BA1 Chapter A new chapter of B ank A dm inistra tion In stitu te, th e W is-Iowa Chapter, has been announced by BIA P resident C harles A. Agem ian, chairm an of the board, G arden State N ational Bank, Rates 25 cents per word per H ackensack, N. J., bringing to 235 the insertion. Minimum: 12 words. n u m b er of local chapters serving the NORTHWESTERN BANKER b anking in d u stry in the U nited States 306 15th St., Des Moines, Iowa and foreign lands. W is-Iowa C hapter officers are: K en neth M ara, a ssistan t cashier, P rairie City Bank, P rairie Du Chien, Wis., L E G A L FO R M S president; M erlin F. K ruger, assistant A n y fo rm you need we stock, o r w ill p rin t. S pecial fo rm s th e n stocked vice president, W aukon State Bank, f o r p ro m p t sh ip m e n t on re-o rd e rs. W aukon, Iowa, vice president; John IO W A L E G A L B L A N K Macke, a ssistan t cashier, Union State & P R IN T IN G CO. B ank, L ancaster, Wis., and R ichard L. Box 238, W eb ste r C ity, Iow a M attie, assistan t cashier, Boscobel State Bank, Boscobel, Wis. M em ber banks include: A rlington FO R SA LE State B ank, A rlington, Iowa; Boscobel F ra n c h ise r ig h ts f o r u se o f The State B ank, Boscobel; Cuba City State L iv in g P ic tu re an d T he F a rm P ic tu re in d ire c t m ail a d v e rtisin g and Bank, Cuba City, Wis.; G arnavillo Sav public re la tio n s. T hese m odern ings B ank, G arnavillo, Iowa; L ancaster n e w sle tte rs ta lk m oney and c re d it State B ank, L ancaster, Wis.; Union fro m a b a n k e r’s p o in t of view. State Bank, L ancaster; L uana Savings T hey help develop ‘F u ll B ank C us to m e rs ’! S am p les fo r in sp ectio n . B ank, L uana, Iowa; U nion State Bank, B ank S ervices In c o rp o ra te d , 1300 M onona, Iowa; State N ational Bank, H a g a n S tre e t, C h am p aig n , Illin o is P latteville, Wis.; P ra irie City Bank, 61820. P hone 217— 356-1339. P ra irie Du Chien; F arm ers and M er ch an ts Savings Bank, W aukon; and W aukon State Bank, W aukon. W ANT ADS Clinton County Bankers ACORN Sale Registers "Accepted Sale Register« by Bank Clerk* Everywhere" For information write THE ACORN PRINTING CO. O akland, Iowa N o for r t h FRASER w e s t e r n Ba n ker, A p r i l , 1971 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Clinton County B ankers elected new officers at its annual m eeting held recently at Camanche. E lected p resi d ent for 1971 was Q uentin C. K uebler, office m anager of the U nion Savings Bank, G rand Mound. O thers elected w ere vice president, P hilip W. Hall, who is p resid en t of Cam anche State Bank, and secretary-treasurer, R ay m ond C. Tiedje, assistan t vice p resi dent of F irs t N ational Bank, Clinton. State S enator Roger Shaff inform ed the county b ankers of c u rre n t pending legislation and answ ered questions per- tam ing to bank legislation. Also ad dressing the group w as C harles E. Erffi zinger, assistan t vice presid en t and farm director of F irs t N ational B ank,*! Clinton. Mr. E rtzin g er rep o rted o i l his recent trip to W ashington, D. C.. w ith eight o ther Iowa bankers. In . W ashington, his group m et w ith all Iowa Senators and Congressm en re4 garding the tax-exem pt com petitive advantage of the F a rm C redit Associa-^ tion (FCA) and the FCA goals and recent grow th records. A dditional agA ricu ltu ral problem s w ere discussed,* w ith four other governm ental agen cies. Wilton Junction M ary S. Ford has been promoted! from a ssistan t cashier to a ssistan t vice president at the W ilton Savings Bank, and M arion L. L arion and R uth A. Tim m sen have been elected assistant^ cashiers. Debentures Offered by Bankers Trust, New York y A public offering of $25,000,000 B ank ers T ru st New York C orporation 6%< per cent debentures due 1978 is being m ade by a nationw ide in vestm ent * banking group m anaged by Lehm an B rothers Incorporated. The deb en tu res^ are priced at 99.75 per cent, plus ac crued interest, to yield approxim ately 6.42 per cent to m aturity. N et proceeds from the sale of the issue will be added to general funds* of B ankers T ru st New York C orpora tion. ^ The debentures are nonredeem ablev and are not entitled to any sinking fund. A pplication has been m ade to list the issue on the New York Stock E x * change. B ankers T ru st New Y ork Corpora- r tion, a registered bank holding com pany acquired all the capital stock of' B ankers T ru st Com pany and th ree o th er banks on May 31, 1966, and since then has acquired six o ther banks, alb located in New Y ork State. Of the $9,930,646,000 total assets of * B ankers T ru st New Y ork Corporation and its affiliates a t D ecem ber 31, a p * proxim ately 93 p er cent w as accounted t for by B ankers T ru st Company. On the basis of deposits at the year end,/ B ankers T ru st Com pany w as the sixth largest b ank in New Y ork City and 4 the seventh larg est in the U nited States. In a separate financing, Bank-**ers T ru st Com pany on M arch 2, 1971, A| offered publicly $75,000,000 of B ankers T ru st Com pany capital notes due>. 1966, also th ro u g h an u n d erw ritin g group m anaged by L ehm an B rothers ' Incorporated. Io w a News 105 > I.#'//### Ifuvstions and .1 mnrers - ■ This m aterial is intended fo r general in fo rm a tio n . It may o r may not apply in specific cases and your own counsel should ' be consulted in all instances. W endell B. Gibson General Counsel, Iowa Bankers Association. General Practice o f Law— 26 years. Member — A dvisory Com m ittee, Su preme C ourt of Iowa. Former S ecretary — Iowa State Bar Association — N ational C o nfer ence o f Judicial Councils — Special C om m it tee, Am erican Bar Association on I m p r o v in g th e A dm inistratio n o f Justice. Q. Why don’t they put the cardhold^ er’s picture on credit cards? A. This is being done in some places. It m akes identification of a valid cardholder easier. It is m ore expensive to include a p ictu re b u t I im agine th e real reason th e practice is not w ide spread is th a t a co u n terfeit or altered A card w ith a p ictu re of th e fictitious holder is too readily accepted by merr chants w ith o u t oth er investigation. My th in k in g m ay be slanted by m y reading of spy th rille rs w h ere the w rite r finds it easy to supply fake pass ports w ith pictures. I note in th e new •* credit card am endm ents to T ru th in L ending th a t a condition for im posing lim ited liability on a cardholder is th a t th e issuer provides a m ethod w hereby the user of th e card can be identified as the person authorized to use it. Q. Can anybody sue me any time they feel like it and don’t I have a right to be let alone? A. T h ats a lot of question. To begin w ith, blackm ail-like th re a ts of litiga tion are frow ned upon and if th is is happenin g — see y o u r law yer. Con tinued harassm en t, in or out of court, m ay be enjoined. H ow ever, law yers like to say th a t the co urthouse door is alw ays open for the decision of con troversies. The big problem m ost pros pective litigants have is securing a law yer and arran g in g for th e paym ent of his fee. The legal aid in terv iew is a b a rrie r to th e m erely contentious poor person. L aw yers don’t like to stir up litigation—th a t is frow ned upon in th e nam e of “b a rra try .” Once the door is found open, the litigants m ay be m et by a num ber of threshold de fenses th a t m ay close the door. The m ost decisive, in com m on language, is “even if all you say is tru e —th is court can ’t do an y th in g about it.” In m ore form al language — “the plaintiff has failed to state a cause of action upon w hich any relief can be g ran ted .” T here are m any other door-closers such as w rong court, im proper notice, not enough m oney involved for this court, w rong defendant, defendant can ’t be used in th is court, plaintiff has no rig h t to any protection (no stan d in g ), plaintiff h a sn ’t exhausted his oth er (usually adm inistrative) rem edies, this m a tte r has already been decided (prior adjudication) and so on. H ow ever again, judges usually lean over backw ards to give a citizen his day in co u rt and you m ay be p u t to th e expense of going to tria l on a claim w hich you regard as groundless. T hat is our system . On being “let alone,” our U. S. Suprem e C ourt has said “No rig h t is held m ore sacred, or is m ore carefully guarded by the common law, th a n the rig h t of every individual to the possession and control of his own person, free from all re stra in t or in terferen ce of others, unless by clear or unquestionable au th o rity of law .” Q. W hy do Ave have to put up with this ADC A v e l f a r e problem? T hey’ve added an “F ’ to your alpha betical designation. AFDC is a pro gram of Aid to Fam ilies w ith D epend en t Children. The “F ’ is im p o rtan t because th is form of public ch arity is offered in the belief th a t it is cheaper and b e tte r to keep fam ilies together th an it w ould be to institutionalize th e children involved. The public in terest is in the protection of th e child w ho m ight otherw ise be hom eless on the street or necessarily neglected. We “p u t up w ith ” the program because no one has an acceptable alternative. The cost of providing decent accom m oda tions for thousands upon thousands of children eith er in in stitu tio n s or foster hom es w ould stagger federal and local budgets. How m any of the adults in volved w ould be able to su p p o rt them selves if the children w ere tak en from th e ir custody is an o th er question. W ithin the stru c tu re of the p resent program , m any tho u g h tfu l people be lieve th a t a m inim um provision for fam ilies should replace strict eligibil ity and budget requirem ents, th a t in come from other sources should be encouraged ra th e r th a n penalized, th a t investigative procedures should be lim ited to rep o rted and suspected fraud cases and th a t th e idea of reh ab ilita tion by casew ork should be abandoned. The p resen t ad m inistration has m ade proposals along these lines w hich w ould undoubtedly save supervisory costs and restore a m easure of inde pendence to th e recipients. These do nothing, how ever, for th e big public w orry th a t m any of the children are not receiving the aid intended for them . Aside from cases of extrem e neglect, I don’t see any w ay to police this or to afford any attem p ts at po licing it. We are sim ply going to have to have confidence in th e con science of th e p a re n t citizens. H is torically, a p re tty good place for con fidence. The V eterans A dm inistration has an nounced th a t 95,000 M innesota v eter ans holding W orld W ar I and W orld W ar II insurance policies will receive over $6.1 m illion in dividends this year. Jo h n R. M urphy, director of the VA C enter in the new F ederal B uilding at F o rt Snelling, said these dividends are p a rt of a record $275 m illion in annual dividends approved for d istrib u tio n in 1971 by A d m inistrator of V eterans Affairs Donald E. Johnson. N o r t h w e s t e r n B a n k e r, A p r i l , 1971 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 106 I p th e D own Staircase L ester D. Dill, operato r of M eram ec C averns in M issouri, w as feted by friends recen tly on his 40th an n iv er sary in th e cave business. A sked th e secret of his success, he replied, “I started at th e top and w orked m yself dow n.” A Bag o f Tools Isn ’t it stran g e th a t p rincess and kings And clow ns th a t caper in saw dust rings, A re com m on people like you and me, Are builders for eternity? To each is given a bag of tools, A shapeless m ass, and a book of rules; A nd each m u st m ake, ere life his flown, A stum bling block or a stepping stone. Progress An A m erican In d ian won first prize not too long ago w ith his p e n e tra tin g description of a p ictu re of a deserted and desolated farm house. H ere’s how th e In d ian described th e photo w hich appeared in a farm publi cation. “P ictu re show w h ite m an crazy. C ut dow n trees. M ake big I) D e L u x e C h e c k P r i n t e r s , I n c ......................... 9 D o a n e A g r i c u l t u r a l S e r v i c e , I n c ............... 22 D o w n e y , C. L ., C o m p a n y .............................. 5 1 D r o v e r s N a t i o n a l B a n k ................................. 107 AIIVFIKTISFKS E APRIL. 1971 E m p l o y e r s M u t u a l C o m p a n i e s .................. A c o r n P r i n t i n g C o m p a n y .............................104 A l l i s o n - W i l l i a m s C o m p a n y .......................... 58 A m e ric a n B enefit I n s u r a n c e C o m p a n y .26 A m erican N atio n al B a n k and T ru s t C o m p a n y — C h i c a g o ..................................... 4 5 A m erican N ational B a n k and T ru s t C o m p a n y — St. P a u l ...................... 52 A m erican T ru s t and S avings B a n k — D u b u q u e ........................................ N o r t h w e s t e r n B a n ke r. A p r i l , Ì971 27 F A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V erisim ilitude In a play being reh earsed by a Sun day School class, the script called for th e ch aracter being played by the Sun day School su p erin ten d en t to be shot and to cry, “My God, I ’m shot.” B elieving this to be objectionable, he proposed th a t the line be changed to read, “My goodness, I ’m shot.” To play a joke on th e su p erin ten d ent, some of th e pupils p u t some red in k in th e b arrel of th e gun th e n ig h t th e play w as to be presented. W hen th e tim e came for him to be shot, the C o n t i n e n t a l W e s t e r n I n s u r a n c e Co...........28 C o n tin e n ta l W e s t e r n L ife I n s u r a n c e C o m p a n y ............................................................ 4 5 IMMÎV OF B a n k e rs T ru s t C om pany— Des M o in e s.. B a n k o f A m e r i c a .............................................. B e c k e r & C o w n i e , I n c ................................. C C a r e e r G i r l ............................................................ C e l a n e s e F i b e r s M a r k e t i n g C o ................. C e n tral N atio n al B a n k an d T ru s t C o m p a n y — D e s M o i n e s . ............................ C h e m i c a l B a n k ................................................... C h ile s , H e i d e r & Co. ..................................... . C i t y N a t i o n a l B a n k a n d T r u s t Co.— K a n s a s C i t y .................................................. C o m m e r c e B a n k o f K a n s a s C i t y .............. C o m m ercial L o an I n s u r a n c e C o r p o r a t i o n ......................... C o n tin e n ta l Illin o is 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 ................................... teepee. Plow hill, w ater wash. W ind blow soil. G rass gone. Door gone. W indow gone. W hole place gone. B uck gone. Squaw gone. Papoose too. No chuck-away. No pigs. No corn. No plow. No hay. No pony. In d ian no plow land. G reat Spirit m ake grass. Keep grass. Buffalo eat grass. Indian eat buffalo. H ide m ake teepee, m ake moccosion. In d ian no m ake terrace. All tim e eat. No h u n t job. No hitch hike. No ask relief. No shoot pig. No build dam. No give dam. Indian w aste nothing. In d ian no w ork. W hite m an crazy.” 92 57 96 20 21 F a r r e l l , R e x , I n c .................................................. ig F i n a n c i a l I n s u r a n c e S e r v i c e , In c . . . . . ! ! 12 F i r s t M id A m e r i c a , I n c .................................... 8 6 F i r s t N a t i o n a l B a n k — C h i c a g o ................ 7 F i r s t N a t i o n a l B a n k — D e n v e r ................... 65 F i r s t N a t i o n a l B a n k — K a n s a s C i t y . . . 89 F i r s t N a t i o n a l B a n k — M i n n e a p o l i s . . . . 95 F i r s t N a t i o n a l B a n k — O m a h a ................... 7 3 F i r s t N a t i o n a l B a n k — St. L o u i s .............. 29 F103 i r s t N a t i o n a l B a n k — S i o u x C i t y . . . . . . .87 F i r s t N a t i o n a l B a n k a n d T r u s t Co.—• L i n c o l n ............................................................ 79 F i r s t N a t i o n a l C i t y B a n k — N e w Y o r k . ! 30 F r a n k l i n N a t i o n a l B a n k ......................... 17, 26 G G e n e r a l U n i t e d L i f e I n s u r a n c e C o ...........16 I discharge of the gun sp lattered his-* sh irt w ith red ink. T he su p erin ten d ent spoke his reh earsed line, “My ^ goodness, I ’m shot.” A T hen looking dow n at his redspotted shirt, he shouted, “My God, I AM shot!” i F ourth G eneration C o m p u ter r y O ffertory L ittle M ary w as m uch su rp rised w hen she received a half dollar on her fifth birthday. She k ep t it in h er hands constantly and finally sat dow n 1 on a stool, looking in ten tly at the coin. x H er m other said, “M ary, w h a t are you going to do w ith y o u r half dol- x lar?” “I ’ll take it w ith me to Sunday School,” said M ary prom ptly. “I guess you w an t to show it to your teacher,” suggested m other. ^ “Oh, no!” declared M ary, “I ’m going to give it to God. I know he w ill be < as surp rised as I am to get som ething besides pennies!” * ? 23 . 2 M M i d l a n d N a t i o n a l B a n k — M i n n e a p o l i s . . 55 . 13 X N a t i o n a l B a n k o f C o m m e r c e ................... N o r t h C e n t r a l L i f e ....................................... N o rthern T ru st Com pany B ank . . . . . . N o rth w e ste rn N atio n al B a n k — M i n n e a p o l i s ................................................... N o rth w e ste rn N ational B a n k — O m aha. N o rth w e ste rn N ational B a n k — S i o u x C i t y ....................................................... . 85 . 39 , 3 O m a h a P r i n t i n g C o m p a n y ......................... 76 O P P a c k e r s N a t i o n a l B a n k .............................. P i p e r , J a f f r a y & H o p w o o d , I n c ................. R R ahel, K n a c k and Com pany s . 59 . 71 62 76 54 ................ , 84 T T e n s i o n E n v e l o p e C o r p o r a t i o n ................ T o y N a t i o n a l B a n k ......................................... U 24 75 U n i o n I n s u r a n c e C o m p a n y ......................... 90 U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . 88 U. S. N a t i o n a l B a n k — O m a h a . . . . . . . . . 6 8 U n i v e r s a l A s s u r o r s , I n c .................................. 8 8 77 43 K i r c h n e r , M o o r e & C o m p a n y ................... 6 K o o k e r , E. F., A s s o c i a t e s ............................. 104 V a n H o r n e I n v e s t m e n t s , I n c ........................ 74 V a n W a g e n e n , G. D „ C o............. .................. 56 25 L a S a l l e N a t i o n a l B a n k ........................... 97 L e a s e A m e r i c a C o r p o r a t i o n .......................... 1 1 L i n c o l n B e n e f i t L i f e C o m p a n y ................... 78 4 82 15 l. * -< > S c h w e s e r , R o b e r t E., C o m p a n y .............. 81 S e c u r i t y P a c i f i c N a t i o n a l B a n k ............ 19 S h a w , M c D e r m o t t & C o ................................ 1 0 2 S q u a r e D e a l I n s u r a n c e C o m p a n y ........... 1 0 0 A. S t u d l e y , S h u p e r t & Co., I n c ......................... 8 I n s u r e d C r e d i t S e r v i c e s , I n c ........................ 10 I o w a - D e s M o i n e s N a t i o n a l B a n k . . 41, 108 I o w a L e g a l B l a n k & P r i n t i n g Co. . . . . .104 99 ¥ Al Goodman found th e perfect com puter. You ju st feed in your problem s r j —and th ey nev er come out again. V A z Y a l e B a n k S e r v i c e D i v i s i o n ....................... 72 Z i e g l e r , B. C„ C o ........................ 44 OUR „ Y 4 * DROVERS ALL WEAR THE SAME HAT. That's so you'll recognize them anywhere. Whether M ike Whelan, our President (he’s the one on the left), or one of the capable men who assist him (Bernie M iller next to him, Fred Cummings in the middle, Ed Riet* alongside Fred, Larry Makoben on the right) stop in to see you, you’ll get the same Drovers knowhow in correspondent banking. They all can pull the same neat tricks out of that hat, too. Prompt service. A ll the extras you should (but might not) be getting now. A nd then some. So next time, call for experience. A n d when one of our Drovers calls on you, check his hat. There’s always something in it for you. t h e DROVERS THE DROVERS NATIONAL BANK OF CHICAGO 4 7 th and Ashland Avenue «• Chicago, Illinois 6 0 609 https://fraser.stlouisfed.org Mike Whelan, Federal Reserve Bank of St. Louis * (312) 927-7000 CIIKFlieNCIi IS ■ ■ ■ John Sayles That’s why so many banks in Iowa enjoy a solid busi ness relationship with the Correspondent Bank Services Department of the lowa-Des Moines National Bank. Here are knowledgeable bank people who have the expertise to show you imaginative financial methods that can help your bank function to its full potential. These bankers know the importance of your bank to your community, and they can suggest ways you can better serve your custom ers . . . more efficiently, more profitably. The lowa-Des Moines Correspondent Bank Services Department offers.• Complete Computer Services (DDA, proof transit, savings, CD’s, reserve checking, installm ent loans, bond accounting, payroll accounting, account reconciliation, reports by Micro-Fiche) • Loan Participation • Bond Portfolio Analysis • Pension and Profit Sharing Programs • Bank Operations A ssistance • Fed Funds M aster Charge Correspond with u s . .. at The Yes Bank IOWA-DES MOINES 1 NATIONAL BANK MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION ( https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 515) 284-8686 Bernie Kersey JO IN IN G T H IS C IR C L E OF BA N K IN G E X P E R T S
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