Full text of The Northwestern Banker : April 25, 1966, No. 966

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Oldest Financial Journal West o f the Mississippi
April 25,1966

Des Moines, Iowa

No. 966

State Rank Assets Continue to Grow
A ssets and liabilities of all
state-chartered banks - mutuals and
commercials - increased 2.26% be­
tween December, 1964 and Decem­
ber, 1965 according to data sup­
plied by the state bank supervisors
from their December ca lls , and
released by the National A s s o c i­
ation of Supervisors of State Banks.
The relatively small increase
in total assets of the nation’s
9,509 state banks in part is due to
last year’s conversion of Chase
Manhattan Bank of New York to a
federal charter. At the time, Chase
Manhattan was the largest state
bank in the United States with re­
sources of nearly $14 billion.
Accordingly, total assets of all
state banks, with the exception of
those located in the State of New
York, increased by 8.18%.
At the end of the December,
1965 period state bank assets to­
taled $215,161,223,000.
During the year, assets of the
506 state-chartered mutual savings
banks increased 7.10% from $54.2
billion to $58.1 billion. By com­
parison, assets of state-chartered,
commercial banks, of which there
were 9,003 in operation at the end
of the year, increased by only .57%.
Again, this slight rise reflects the
effects of the Chase Manhattan
conversion. By excluding New York
from the totals, all other state
commercials posted an 8.34% in­
crease.
For all operating banks, demand
deposits (IPC) showed a dip of

3.09% during the year as contrasted
with a 7.95% increase for time de­
posits (IPC ). On the asset side of
the ledger,’ state banks increased
the size of their loan portfolio by
6.75%, while at the same time de­
creasing the amount of their in­
vestments in U.S. Government ob li­
gations by 7.37%. Significantly,
however, state banks increased
their holdings of state and local
obligations by 6.98%.

NATIONAL NEWS
CANTON, OHIO: A preliminary agreement has been reached to merge
Litton Industries and Diebold, Inc.,
subject to approval of boards of
both firms, and of Diebold stock ­
holders. The merger would expand
Litton’ s operations in the business
equipment field to include bank
security equipment as well as
electronic warning and information
retrieval system s.
CHICAGO: LaSalle National Bank
has named Walter Nohelty as an
assistant cashier in its metropolitan
division.
DETROIT: Rodney C. Linton has
been named cashier of the National
Bank of Detroit, in anticipation of
the retirement of Ray Young. Mr.
Linton has been assistant vice
president and deputy cashier since
July, 1964.
ST. LOUIS: Herbert W. Green has

been elected vice president in
charge of the Mercantile Trust
Company’ s trust department. He
has been with the bank since 1937.
WASHINGTON, D .C .: Thano Dameris, who has been practicing law
in Houston, has been named a ssist­
ant to William W. Sherrill, newlyelected director of the Federal
Deposit Insurance Corporation.
WASHINGTON, D .C .: John J. Gill
has been appointed assistant s e c ­
retary of the state bank division
of the American Bankers A s s o c i­
ation, according to Charles R.
McNeill, director of the Washington
o ffice . Mr. Gill continues as an
attorney on the ABA staff.
WASHINGTON, D .C .: The Comp­
troller of the Currency has issued
a ca ll for statements of condition
of all national banks at the clo se
of business Tuesday, April 5.
Similar ca lls have been issued by
the Federal Reserve Board and the
Federal Deposit Insurance Corpora­
tion, as well as by most states.

Iowa Treasurer to Withdraw
$33.7 Million from Banks
O fficial
announcement
was
made Saturday by State Treasurer
Paul Franzenburg that, on the
basis of a report submitted to him
by three economists from Drake
University, Iowa State and the
University of Iowa, he will with­
draw $33.7 million of state funds
(Continued on back page)

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and

W a r n in g
We have been advised by
our attorneys to give public
notice that we will positively
not be responsible for any
loss of wholesome laughter,
or lo ss of hearty enjoyment,
or loss of information on new
problems resulting from your
failure to attend this year’ s
Group 3 Meeting, Thursday,
May 5 at Clear Lake, Iowa.
Nor will we be responsible
for the reprisals inflicted on
you by your wife, fellow
bankers, directors or wives
when they learn what they’ve
missed by your failure to in­
vite them to this “ event of
the year.”
You are hereby advised
and warned that all the nowfamous attractions will again
be featured, and that this
will include
-the Chic Ladies Luncheon
-the afternoon program, with
sensational added feature
-the
merry social hour
-the toothsome smorgas­
bord banquet
-the “ top name” all star
variety show
-the big-name band dancing
-the valuable door prizes.
YOU ARE URGED TO
PROTECT YOURSELF
Send for an advance regis­
tration form today.

Your Hosts
CERRO GORDO COUNTY
BANKERS ASSOCIATION
FLOYD COUNTY
BANKERS ASSOCIATION
MITCHELL COUNTY
BANKERS ASSOCIATION

IOWA NEWS
CEDAR FALLS: Harold L . Brock,
manager of product engineering,
John Deere Waterloo Tractor Works,
has been elected to the board of
directors of Midway Bank & Trust
Company.
CEDAR RAPIDS: LeFebure Corpo­
ration, bank equipment producer,
has invited 135 representatives of
the industry to see its new “ Dem­
onstration Bank’ ’ building that was
recently built at its plant site.
V isitors will include Fred Sul­
livan, president, and Franc R icciardi, executive vice president
of Walter Kidder C o., In c., which
is in the process of acquiring
LeFebure, subject to approval of
stockholders.
DECORAH: J. Norman L ee, vice
president Decorah State Bank, died
last week.
DES MOINES: The 12th annual Con­
ference on Installment Lending will
be held this week by the Iowa
Bankers A ssociation at the Hotel
Kirkwood. Registration starts at
8:00 A.M., Wednesday, April 27,
and the meeting runs through Thurs­
day noon. Ed Hoffman, vice pres­
ident of the First National Bank,
Sioux C ity, will preside as chair­
man of the Installment Lending
Committee. An informal get together
will be held on Wednesday evening.
DES MOINES: State Treasurer Paul
Franzenburg reports that the study
made by three econom ists from
Drake,Iowa State and the University
of Iowa on investment of state
funds has been com pleted. His re­

port on the study, which will deter­
mine future investment of state
funds is imminent.
IOWA CITY: Approval has been
granted by the Comptroller for a
parking lot office for the First Na­
tional Bank, Iowa C ity, to be lo ­
cated at 1117 William Street (Towncrest Medical Center).
NEVADA: A new Iowa corporation,
RecChek, Inc., located here, has
been set up to provide an electronic
record-keeping system for local
banks to offer their depositors.
The new company will be owned
jointly by the Nevada National
Bank, which developed the system,
and Farm Journal, Inc. of Phil­
adelphia. Details of the system
were described on page 29 of the
December issue of the Northwestern
Banker.

Dan E. Maloney, Nevada, will
serve as president of Rec-Chek, Inc.
Sam McHose, chairman of the Neva­
da National Bank, and Kermit Ander­
son , president of the bank, aided
in the development of the system.
RENWICK: John Walther has joined
the Renwick Savings Bank. He has
been with the Farmers Savings
Bank, Princeton.

NEBRASKA NEWS
GRAND ISLAND: A hearing will be
conducted June 15 in Lincoln on an
application for a fourth bank here.
The bank, to be called the Bank of
Grand Island would have a total
capital structure of $400,000. It
would be located at 416 South
Locust Street. Richard E. Kurtz,
former officer at the South Omaha

Proud of our heritage of service to
Iowa banks, we#re building at 6th & Locust
for an even greater tomorrow.
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Write to
GROUP 3 BANKERS COMMITTEE
P.O. BOX 8, CLEAR LAKE, IOWA

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Federal Reserve Bank of St. Louis

NATIONAL BANK A N D TRUST COM PANY
M em ber Federal Deposit Insurance Corporation

National Bank, is one of the key
applicants.
HERSHEY: An application has been
received for a state bank charter
here. The bank would be known as
the Hershey Valley State Bank
and it would be capitalized at
$100,000. Applicants are E. Dean
Niedan, John W. MeDermand, Charles
W. Baskins, William Callahan and
George W. Taylor.
NORFOLK: Earlier reports noted
that the hearing on the application
for a new bank charter in Norfolk
by Roy Dinsdale, Palmer banker,
would be held Juns 1, following a
hearing May 25 on a similar appli­
cation by Richard Kurtz of Omaha.
Byron Dunn, state banking direc­
tor, reports that both hearings will
be held May 25.
OMAHA: More than 50,000 farmers
and ranchers now have loans out­
standing from the Federal Land
Bank, according to President Thom­
as A. Maxwell, Jr. Loans total more
than $601 million for an average of
$12,000 per loan.

W A N TE D ...
Municipal Bond Customers
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The First National Bank of Saint Paul
SAINT PAUL, MINNESOTA 55101 - AREA CODE 612 - 221-9466

will start at 9:00 A.M. E lection of
new officers will be held.

SOUTH DAKOTA NEWS
ABERDEEN: Ron Kranig has joined
the Aberdeen National Bank as
assistant cashier. He has been
with the examining division of the
First
Bank Stock Corporation,
Minneapolis.
GETTYSBURG: Gilbert Jesch has
joined the insurance agency of the
First Potter County Bank. He
formerly managed an insurance
agency in Farmington, Minnesota.

MINNESOTA NEWS
MINNEAPOLIS: The series of meet­
ings on the Uniform Commercial
Code
continues throughout the
state this week with meetings
planned as follow s: -Mankato, Inn
Towne, April 29; Rochester, Kahler
Hotel, April 30, and Minneapolis,
University’ s
Mayo
Auditorium,
April 30.

COLORADO NEWS
DENVER: Hal Keasler has been
named territorial money order sales
manager in Denver for American
Express Company. He is a former
specia l agent for Fireman’ s Fund.

MONTANA NEWS
CONRAD: B ill Mink, formerly of
Clinton, Iowa, is now serving as
assistant vice president and man­
ager of the installment loan depart­
ment of the Farmers State Bank,
replacing Jim McEnderfer.
BOZEMAN: The Glacier Confer­
ence of NABAC will hold its next
meeting at the Baxter Hotel here
on Saturday, May 7. Registration

REFUSE BRANCH PLAN
IN WISCONSIN COUNCIL
Proponents of branch banking
in Wisconsin suffered a setback last
week. The legislative cou n cil, a
unit of the state legislature, failed
to get enough votes to approve a
subcommittee’s recommendation for
amending a branching b ill. The
group scheduled another vote on
the issue for May when the Wis­
consin
legislature resumes its
1966 session .
The amendments would restrict
branching to the county of the
bank’ s head office or up to 35 miles
away for banks in counties of
50,000 population or less - and 20
miles away for counties with popu­
lations of over 50,000 where county
lines intervene. In addition, a bank
would be prohibited from branching
within a mile of the home office of
another bank in the same town, but
there would be no distance restric­
tions pertaining to another bank’s
branches.
The Badger State A ssociation
of Banks, which supported the bill
that cleared the Assembly last

L IN C O L N

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summer, is reported to favor the
amendments. (The Assembly-passed
b ill was turned back to committee
by the Senate).
The Wisconsin Bankers A s s o c i­
ation plans now to poll its members
on the branching measure.
A branching b ill in Wisconsin
must receive a two-thirds vote of
the full membership of each house.
The bill already has passed the
Assembly so the amended version
would require only a simple major­
ity in that house.
Wisconsin banks have been
prohibited from branching since
1947. The legislature last year
gave state-chartered savings and
loan A ssociations the right to
branch.

In the May Issue of ...
The NORTHWESTERN BANKER
Agricultural lending is the
theme of the May issue of the
Northwestern Banker, scheduled for
mailing this week.
You will want to read: “ The
Challenge of the PC A ’ s ” by David
A. Shern; the results of an exclu ­
sive new survey on Farm Leiiding,
and selected articles on Automated
Farm Accounting Procedures.
In addition, pre-convention pro­
grams for 10 state, regional and
national conventions are featured,
including Iowa and Montana Group
Meetings, Nebraska, South Dakota,
North Dakota and Colorado State
Conventions, the Regional NABAC
Meeting in Omaha; the Independent
Bankers Convention in Las V egas;
the ABA Mortgage Conference in
Minneapolis, and the AIB Con­
vention in San Diego.

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The NORTHWESTERN BANKER
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IOWA TREASURER...
(Continued)
earlier deposited in 103 Iowa
banks.
The funds, which have drawn
the legal limit of 4% in the banks,
w ill be invested in U.S. Treasury
B ills at a return of nearly 5%.
Mr. Franzenburg estimated that
leaving the funds in the banks
would result in a loss of $320,000
to the Iowa Treasury in the next
year.
Acknowledging that entire and
immediate withdrawal could lead
to disruptions in certain communities-including boosted loan-deposit
bank ratios-the Treasurer, in a let­
ter delivered to each of the state’ s
banks Saturday, spelled out a grad­
uated withdrawal schedule.

LATE NEWS...
DENVER, COLO.: Central Bank &
Trust Company, long opposed to
branch banking, is “ reassessing
its position,” according to Max G.
Brooks, president and chairman,
in the light of the trend toward
forming affiliate banks or bank
holding companies in order to gain
a competitive advantage despite
branch banking laws.
DES MOINES, IOWA: The Board of
Directors of Pioneer Hi-Bred Corn
Company has announced an open
house at the company’ s newlyremodeled headquarters Sunday,
May 1.
MINNEAPOLIS, MINN.: Robert F.
Gray, chairman and chief executive
officer, Geo. A.Hormel & Company,
Austin, and Robert J. Keith, pres­
ident, The Pillsbury Company, have
been named as new director nomi­
nees of First Bank Stock Corpo­
ration.
WINONA, MINN.: Beverly Jean B ell­
man, 38, assistant cashier, First
National Bank, who admitted em­
bezzling from customer accounts,
was sentenced last week to 30
months imprisonment by St. Paul
Federal Court.

306

15th S t., D es Moines, Iowa

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No 966 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des

ÍJ o 'in l Iowa 50309™ Subscription 50« per copy, $4 per year. Second cla ss postage paid at Des Moines, Iowa. Address all tna.l


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