Full text of The Northwestern Banker : August 11, 1969, No. 1177

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Oldest Financial Journal Serving The Central and Western States

No. 1177

Des Moines, Iowa

A rea B anks Face Livestock Credit Dem ands
Livestock feeders and farm op­
erators are continuing to receive
necessary credit and in many
cases below the prime rate of
8%%, according to a number of
authentic studies.
One of the most recent surveys
on the subject appears in the
August 9 issue of Wallace Farmer.
It shows that current interest
rates on cattle loans are mostly
in the 8% bracket. Comment from
the survey follows:
Money will be a little tighter
for Iowa cattle feeders this fall.
But most folks, especially those
with established credit connec­
tions and a history of profitable
operation, will be able to get
the money they need.
Everett Stoneberg, ISU econo­
mist, puts it this way:
“ So far, there hasn’t been much
real squeeze on agricultural cred­
it for operators who are fully
deserving of credit. The ones with
a shaky financial statement may
have
more problems — but that
should be the case anytime.
“ However, cattle are costing
more this year. Some lenders may
choose to offer no more money
than last year, which means fewer
cattle for these borrowers. Part
of this may be a hedge on feed
supply until the 1969 crop is more
certain.

“ In short, most cattle feeders
will probably get the money they
need. But bankers will be asking
more questions than usual.”
Mr. Stoneberg goes on to ex­
plain that money for cattle is a
choice loan which liquidates it­
se lf rapidly. Risk to the lender
is quite small when the borrower
has the feed.

August 11,1969
money borrowed
nation.


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the

“ It’ s hard to guess what will
happen to interest rates in the
months ahead,” says Mr. Stone­
berg. “ I thought they were too
high before the last increase.
“ The administration does seem
to be trying to keep the prime
rate from going any higher. So
other means of rationing capital
seem to be getting more attention
in the big money markets now.”
V isits by editors of Wallace
F armer with lenders scattered
over the state indicate current
interest on cattle loans in the 7%
to 8%% bracket, mostly at 8%.

“ Most rural bankers are ori­
ented to agriculture enough to
take good care of cattle feeding
borrowers even though it may cost
them a little in potential return,”
says Mr. Stoneberg.
“ At this point, a bank can get
as much or more return on other
investments.
“ So Iowa farmers sometimes get
credit below the market— in many
cases, at less than major corpo­
rations must pay.”
Current prime rate to favored
borrowers is about 8%% in major
money markets, up sharply from
last year. The increased rate is
part of an effort to check infla­
tion by reducing the amount of

Cattle feeders who would like
loans at less than prime rate
would do well to arrange for their
loans now rather than to wait
until the last minute.
A survey of larger banks taken
nationally last month by the Fed­
eral Reserve Board showed some
differences among the banks.
The board received responses
from 336 banks and found that
309 were charging the prime rate,
which was raised to 8%% from 7%%
on June 9. Of the 309, 27 banks
charged the 8%% prime rate only
to national corporations. Their
most credit-worthy local busi­
nesses could get loans at 7%% to
8%, a situation bankers call a
‘ split rate.’

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LOCUST AT SIXTH AVENUE, DOWNTOWN' DES MOINES, PHONE 2434181

MEMBER F.D.I.C.

GENE HAGEN

TOM HORN

- JOHN DIEFENDORF

job for you at

security national
in sioux city

tired officer of the Fidelity Savings
Bank has died at the age of 81. He
was actively engaged at the bank for ^
49 years as head teller, cashier,
and trust officer and was vice pres*
ident from 1945 until retirement in 1963.

NEBRASKA NEWS
LINCOLN: Charles W. Swingle, Sr.,
78, a former director of the National
Bank of Commerce has died in
Lincoln. He was general partner in
the C. W. Swingle Company and
president of Swingle Realty Ltd.

ALTOONA: Wayne B. Rowland has
been elected cashier at the Altoona
State Bank. He has 25 years of bank­
ing experience, including experience
as a bank examiner.
AVOCA: The FDIC has approved the
application of the Citizens Savings
Bank to exercise limitedtrust powers.
CASEY: The FDIC has approved the
application of the Casey State Bank
to merge with the Menlo Savings
Bank, Menlo, under the charter of
the Casey bank and with the title of
Security State Bank and to establish
an office at Menlo. The Justice De­
partment has 30 days to file suit
after FDIC approval.
COUNCIL BLUFFS: Haw keye Ban cor­
poration, Red Oak, has announced
plans to acquire control of State Bank &

Christy
Armstrong

Leo
Kane

Bob
Scott

‘WE HAVE WHAT YOU WANT
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a

correspondent

CRYSTAL LAKE: Ron Hansen has
joined the Manufacturers Bank & Trust
Company as trust officer. He was
formerly with Union Bank & Trust
Company, Ottumwa.
DES MOINES: More than 50 members
of the Iowa Bankers A ssociation ’ s
agricultural and public relations com­
mittee have indicated their intention
to take part in the IBA banking d is­
play at the forthcoming Iowa State
Fair later this month. This w ill be
the second year the display has been
shown.

bank’

american trust
and sa v in g s b a n k
9TH AND MAIN, DUBUQUE, IOWA
MEMBER: FDIC •FRS

Trust Company here, subject to prior
approval of the Board of Governors of
the Federal Reserve System. Hawkeye
President Paul D. Dunlap said he
and Myron Weil, executive vice pres­
ident of Hawkeye, have entered into
a contract to acquire 62.6% of the
State Company of Council B luffs, a
one-bank holding company owning
88.5% of State Bank & Trust. The
proposed acquisition is a two-step
transaction whereby Mr. Dunlap and
Mr. Weil have contracted to buy con ­
trolling interest in the State Company
from Life Investors of Cedar Rapids
and will resell it to Hawkeye at their
cost, subject to prior Federal Re­
serve Board approval. This is the
third proposed bank acquisition an­
nounced by Hawkeye in 30 days.

DUBUQUE: Open house w ill be held
by the American Trust and Savings
Bank in its new Kennedy Road
facility on August 13.
MARSHALLTOWN: Earl J. Paul, re­

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you get what you want

IOWA-DES MOINES
NATIONAL BANK

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

Member Federal Deposit insurance Corporation

5**
■M

we ore

IOWA NEWS

^

LINCOLN: Edmund H.Mullowney, Sr.,
has died at the age of 94. Mr. Mullowney was a past employee of the
First National Bank of Lincoln and
a former examiner with the State
Banking Department. In 1915, he
became vice president and cashier of
the old City National Bank and con­
tinued as vice president at the bank
following its merger with the First
National Bank until his retirement
in 1940.

*

SCOTTSBLUFF: Gary W. Hall has
been named executive vice president
V
and Jack J. Moss cashier and a s s is ­
tant v ice president at the Western
National Bank. Mr. Hall, who has
been with the bank sin ce it opened
in 1965 and was serving as a ss is ­
tant v ice president and cashier, su c­
ce e d s J. T . Selzer, who has rejoined
the affiliated parent bank, the Scottsbluff National, as vice president and
director. Mr. Moss joined the Western
National in May of this year, coming
from the Western National Bank of
Casper, Wyo., where he was cashier.

MINNESOTA NEWS

k

BIG LAKE: Dr. V. C. Johnston, pres­
ident of the Citizens State Bank of
<
Big Lake, has announced the appoint­
ment of H. O. Lee as cashier and »
manager of the Sherburne County In­
surance Agency. Mr. Lee has been
serving as assistant cashier of the
Citizens State Bank of Fulda, Minn.
CEYLON: The Minnesota Department
WANTED! TRUST OFFICER
E xcellent opportunity for a man who ^
has trust experience. We are looking
for someone who has the ambition ^
and imagination to be the second in
charge of our $40 million trust de- ^
partment which is expanding rapidly.
This position offers a challenge in ^
all phases of a trust department. The
bank offers many fringe b e n e fits .^
Salary dependent upon qualifications
and experience. Please send salary ^
requirements with your resume. File
BBP, NORTHWESTERN BANKER,
306 Fifteenth St., Des Moines, Iowa
50309.

Always the First to Serve You!

o

First National Bank o f Omaha
16 TH 4 FARN AM

OMAHA, NEBRASKA

Member Federal Deposit Insurance Corporation

n

an
of
of
by

Northwestern National Bank of St.
Paul in the personal banking depart­
ment. He was formerly an assistant
manager o f the Minnesota Central
Credit Union of St. Paul.

MINNEAPOLIS: Thomas K. Scallen
has been named chairman of the board
of the Bank of Minneapolis & Trust
Company, and H. Clifford Auble has
been elected president. Mr. Scallen
has been president of the bank since
it was established in 1965. Mr. Auble
has been president of the First Na­
tional Bank of Wayzata, Minn., for­
merly North Shore State Bank of
Wayzata, sin ce 1966, has had bank­
ing experience at the University Na­
tional Bank, where he was loan su­
pervisor and later vice president, and
also has served as executive vice
president of the Summit National
Bank, St. Paul.

ST. PAUL: The FDIC has approved
the application of the Phalen Park
State Bank of St. Paul to change its
main office location from 1119 Bar­
clay Street to the intersection of
Maryland and Prosperity Avenues
within St. Paul.

of Commerce has
amendment increasing
capital stock at the
Ceylon from $50,000
stock dividend.

authorized
the amount
State Bank
to $75,000

MORA: Robert L. Nikodym has been
named vice president of the National
Bank here. Mr. Nikodym has 23 years
of banking experience, including
serving as executive vice president
and director of the Kanabec State
Bank here.
MOUNTAIN LAKE: The Farmers State
recently held an open house to mark
its 50th anniversary. The bank was
organized in 1919 with resources of
$70,401. Presently resources stand
at $5,349,828.
NEW ULM: Warren Marti, president of
the August Schell Brewing Company,
has been appointed a director of the
Citizens State Bank.
NEW YORK MILLS: E. H. Buerkle,
president of the Farmers and Mer­
chants State Bank for the past 46
years, recently was honored by the
Minnesota Bankers A ssociation for
completing 50 years of service to the
banking industry. Mr. Buerkle entered
the banking business in Gibbon in
1919.
ST. PAUL: JohnMason has joined the

ILLINOIS NEWS
BELLEVILLE: Roland W. Blaha, Illi­
nois commissioner of banks and trust
companies, has issued a permit to
organize a proposed state bank at
6910 West Main Street here. The pro­
posed Bankers Trust Company would
be capitalized at $1 million. Orga­
nizers are Earl Millard, E. B. Jones,
Joseph Millard, Norman J. Gundlack
and Harry E. Cruncleton, Jr., all of
B elleville.
CHICAGO: The Michigan Avenue Na­
tional Bank has acquired a five-story
building at 72 East Randolph Street
which may be used for a future drivein facility and may be the nucleus of
future acquisitions for the site of a
new bank building, according to
Richard Curtis, bank president.
CHICAGO: A permit to organize has
been issued for the proposed All
American Bank of Chicago, to be
located at 3611 North Kedzie Avenue,
by the state commissioner of banks

f( / R k CjROSS

Co

BANK PLANNING
W aterloo, Iowa
and trust companies. Organizers are
Joseph D. Keenan, Jr. and David R.
Elvart, both of Park Ridge; John R.
Banner and Matthias C. Bruch, both
of Chicago, and Emil Greco of Elm­
hurst. The bank is to be capitalized
at $1.2 million.
GEORGETOWN: Jack Pribble and
Dr. Stephen J. Chantos have pur­
chased 99 shares of stock in the
First National Bank from Maud D.
Myers, according to the Comptroller.
There are 800 shares outstanding.

HARDIN: The FDIC has approved
application of the Bank of Calhoun
County to change its location from
County Road to Water Street within
Hardin.

LANSING: William C. Haase has been
appointed vice president and cashier
at the First National Bank. Mrs. Helen
M. Kennedy has been named a ss is ­
tant cashier. Mr. Haase has been the
bank’ s vice president in charge of
the commercial loan division since
1967. Mrs. Kennedy has been an
executive secretary.

ARE YOU READY
to be President of an Iowa bank with over $40 million in footings? The
man we are looking for w ill be a strong leader in the bank and in the
community. He w ill be excited at the challenges to his ability to plan for
growth, and the opportunity to implement these plans with a loan port­
folio aggressively involved in commercial loans, heavy real estate
interests, and more than a third of the total in installment loans. He
w ill obviously be a self-starter who can inspire his officers and the
staff to work together for our goals. He w ill bring with him a solid
reputation and an experience background that warrants a starting salary
of at least $25,000 and attractive executive benefits.
If you are this man, send your resume in confidence to me,
the majority stockholder, in care of —


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Federal Reserve Bank of St. Louis

Box CID, NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309

WASHINGTON: The Comptroller of
the Currency has issued a certi­
ficate to the Danforth First Na­
tional Bank of Washington to change
its name to the First National Bank.

SOUTH DAKOTA NEWS
John Vucurevich, owner of the
United National Banks of Brandon,
Canistota, Gay ville, Tabor, Valley
Springs,
Vermillion,
Volin
and
Wakonda and the Lyman County Bank
of Kennebec, has announced the
merger of the banks into one of the
larger independently owned banks in
the state. No change in management
of the facilities is planned. Purpose
of the merger is to consolidate in­
ternal operations, increase capital
structure and provide additional ser­
v ic e s .
ABERDEEN: Gary L. Wickre has
joined the staff of the Northfield
National Bank. He is a recent gradu­
ate of Northern State C ollege here
and has previously been employed at
the National Bank of South Dakota,
Wessington Springs o ffice , and the
Aberdeen National Bank.
ABERDEEN : Gary Roth has been ad­
vanced from assistant cashier to a s­
sistant v ice president and manager of
the installment loan department at the
First National Bank of Aberdeen.
Loren Steele has been elected a s s is ­
tant cashier. Both men are at the
head office here.
HERREID: William B lock, vice pres­
ident of the Campbell County Bank
here, has retired after 28 years of
service with the bank. He began his
banking career in T olstoy, S. D .,
came to Herreid in 1941 and was

instrumental in starting the Campbell
County Bank in 1944.
MILBANK: Kenneth Trapp, 56, man­
ager of the Hill City branch of the
First National Bank of Rapid City,
has died at St. Johns Hospital in
Rapid City following a heart attack.
MILLER: Richard J. Froning has been
promoted to cashier at the Hand
County State Bank. He joined the
bank as teller about 12 years ago
and was currently serving as a s s is ­
tant cashier.

NORTH DAKOTA NEWS
CARRINGTON: Ray Kelly has joined
the staff of the First National Bank
as assistant cashier. He was former­
ly manager of the Ben Franklin store
here.
VALLEY CITY: Wesley N. Severson
has been elected chairman of the
board of directors of the new Farmers
and Merchants Bank of Valley City.
Gerald L . Zinck, formerly vice pres­
ident of the American National Bank
here, has been named president and
Jack Holm cashier. Other bank per­
sonnel named directors are: Frank
Larson, vice president; R. LeeMeuret,
secretary; Dr. Paul R eslock , treas­
urer, and Leo Beauclair, legal coun­
s e l. Other board members include
Raymond Olson, John Salvi, John
Manstrom and Henry Bruns, Jr. Of­
ficial opening of the new bank is
being held today.

COLORADO NEWS
DENVER: The newly chartered Indus­
trial Bank of America opened for
business on August 7 at 1199 West
Colfax Avenue. Albert Purcell is

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president; Robert Jay, executive vice
president; C. G. Theodoran, vice
president, and Mrs. C. A. Andrews,
assistant cashier.

WANT ADS

Rates 25 cents per w ord per
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NORTHWESTERN BANKER
306 15th St., Des M oines, Iow a
POSITION WANTED
Farm credit man, age 39, Iowa State
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R XT, NORTHWESTERN BANKER,
306 Fifteenth Street, Des Moines,
Iowa 50309WANTED
Experienced cashier and operations
officer for $25 million bank —located
in eastern Iowa. Send resume to F ile
RIJ, c / o NORTHWESTERN BANKER,
306 Fifteenth Street, Des Moines,
Iowa 50309.
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No. 1177 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Iowa 50309- Subscriptions 50£ per copy, $6 per year. Second class postage paid at Des Moines, Iowa. Address all mail
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