The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
On The Cover— Page https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 □ A Look at Current Commercial Credit Concerns— Page 27 Putting it all together to make good things happen in Iowa! Statement of Condition june30,1974(unaudited) ASSETS: Cash and Due From Banks .................................................................... $ 65,643,961 U. S. Treasury Securities ......................................................................... 26,544,752 Obligations of Other U. S. Government Agencies and Corporations 20,503,856 Obligations of States and Political Subdivisions ............................ 65,115,479 Other Securities ...................................................................................... 1,555,984 Federal Funds Sold ........ 32,850,000 Loans ......................................................................................................... 274,060,348 Bank Premises and Equipm ent.............................................................. 11,165,170 Other Real Estate ..................................................................................... 1,236,653 Accrued Interest ....................................................................................... 4,393,227 943,673 Prepaid Expenses and Other Assets ..................................................... Total Resources .................................................................................... $504,013,103 LIABILITIES: Demand Deposits ......................................................................................$185,858,544 Time Deposits ......................................................................................... 213,894,937 Federal Funds Purchased ..................................................................... 42,700,000 Other Borrowed Money ........................................................................... 525,000 Unearned Income ..................................................................... 4,848,847 Accrued Expenses and Other Liabilities ............................................ 4,547,413 Total Liabilities ...................................................................................... $452,374,741 RESERVES ON LOANS: Reserve for Losses on Loans ................................................................ $ 4,429,592 CAPITAL ACCOUNTS: Capital Stock, Common, No Par Value ................................................ $ 4,151,250 Stated Value $2.50 per share; Authorized 6,000,000 shares Issued shares 1,660,500 Surplus ........................................................... ......................................... 17,142,875 Undivided Profits ....................................................................... ............. 26,053,982 Less Cost of Common Stock Required for the Treasury, 1974 - 5,812 shares; 1973 - 5,562 shares ....... ..................................................................... (139,337) Total Stockholders Equity ..................................... _..........................$ 47,208,770 Total Liabilities, Reserves and Capital ............................................$504,013,103 Banks Board of Directors Duane Arnold Chairman of the Board and President Iowa Electric Light & Power Company Edward Burchette Chairman of the Board Valley National Bank James E. Coquillette President The Merchants National Bank V. P. Cullen Chairman of the Board First National Bank George C. Foerstner President Amana Refrigeration, Inc. John T. Hamilton II Chairman of the Board Banks of Iowa E. Howard Hill Past President Iowa Farm Bureau Federation Oscar E. Johnson Senior Partner Johnson, Stuart, Tinley, Peters & Thorn Dale Kelley President First National Bank J. Locke Macomber President Valley National Bank F. Forbes Olberg President Banks of Iowa B. T. Perrine Senior Partner Simmons, Perrine, Albright & Ellwood Ed H. Spetman Jr. President Council Bluffs Savings Bank Max von Schrader Chairman of the Board Union Bank and Trust Company Max von Schrader, Jr. President Union Bank and Trust Company lowae First National Bank Burlington • The Merchants National Bank Cedar Rapids Council Bluffs Savings Bank Council Bluffs * Valley National Bank Des Moines Union Bank and Trust Company Ottumwa • Banks of Iowa Computer Services Cedar Rapids https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Modern Pneu-Vista 800 direct vision drive-in systems provide rapid service Convenient enough to please every one of your customers. AN A M E R IC A N -S T A N D A R D C O M P A N Y D E P A R T M E N T NB-874 H A M IL T O N , O H IO 4 5 0 1 2 Mosler. Full security is only the beginning https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 & ON THE COVER A reminder of their Dutch heritage was given to residents of Orange City, la., when the Northwestern State Bank of Orange City recently >opened its spectacular Windmill Drive-In facility on the outskirts of - that predominantly Dutch commu nity. H. V. Rowenhorst, president of t the bank, said the unique drive-in was specifically designed “as an '‘expression of appreciation for the loyalty of the community to this bank.” The windmill has approximately 1,000 square feet inside, is 52 feet from the ground to the dome and 76 hfeet from the ground to the tip of the vane. The dome weighs approxi< mately seven tons and the vanes themselves also weigh seven tons. It took the contractor 14 months to complete the unusual job. Landscaping around the authentic -»structure includes 10,000 tulip bulbs. During the Annual Tulip Festival, held during the third week in May, literally thousands of people toured the facility, Mr. Rowenhorst states. Modify Variable Rate "Issue; Plan Restrictions Citicorp, the nation’s second largest bank holding company, has agreed to modify its variable interest note issue to provide that no holder would have the right to request '‘payment before June 1, 1976. According to FRB Chairman Arthur Bums, that modification “substantially” reduces the concern of the Federal Reserve Board about the effects of the proposed issue on thrift institutions. A proposed Congressional bill - would make it illegal for a bank holding company or any subsidiary to offer any such issue that could be redeemed within 10 years without FRB approval. Citicorp on June 19 registered * with the SEC a $250 million 15 year note issue with a floating rate of return pegged at 1% over treasury rates. The issue was raised to $850 million two days later. To be sold . through brokers, the notes woulcf have a minimum denomination of $5,000 and additional denominations of $1,000. Oldest Financial Journal Serving The Central and Western States for your August, 1974, reading 81st Year No. 1331 FEATURE ARTICLES 5 On the Cover 8 Bank Promotions and Changes 14 Convention Calendar 23 “Have Trailer, Will Loan” Is Georgia Bank’s Slogan 24 The Why of Recent Interest Rates—Ed Palmer 26 Cattle—Asset or Liability—Lewis Lowe 27 A Look at Current Commercial Credit Concerns— Lawrence H. Fro wick REGIONAL BANKING NEWS ‘ Illinois News Minnesota News 31 35 54 54 Twin City News South Dakota News North Dakota News 55 55 57 Nevada News Nebraska News Colorado News 36 46 47 48 Oregon News Washington News Idaho News 58 Omaha News Wyoming News 50 62 Lincoln News Montana News 51 67 Iowa News 72 Des Moines News OTHER FEATURES 78 In the Directors’ Room 78 Index of Advertisers NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309. Phone 515— 244-8163 Publisher Malcolm K. Freeland Advertising Assistant Sherri Nielsen Field Representative AI Kerbel Editor Ben Haller, Jr. Circulation Department Lena Sutphin Dee Timmerman Field Representative Paul Masters Associate Editor Linda L. Larson Auditor Bertha Soderqulst Field Representative Glen Hicks No. 1 331. N orthw estern B anker is pu b lish ed m onthly by th e N orthw estern B anker Company, 306 Fifteenth Street, Des Moines, Iowa 5 0 309. Subscrip tion 50tf per copy, $6 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, change of address, Form 3 5 79, manuscripts, mail items) to above address. 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 u g u s t, 1974 6 Merc Treats Banks to “Double-Header” By MALCOLM FREELAND Publisher WELCOME—James A. Smith, v.p., and Donald E. Lasater, chmn., welcomed visiting bankers to Mercantile Tr. Co.’s 1974 baseball party. O ANKERS attending the 1974 Cardinal Baseball Party, spon sored by Mercantile Trust Company, St. Louis, last month, were treated to a “double header.’’ Previous to the main event at Busch Stadium, the host bank held a Bullpen Session at Stouffer’s River front Towers where Donald E. Lasater, chairman of the bank’s board threw a few pitches on his own. Speaking on the “Outlook for Banking in the Midwest,’’ Mr. Lasater suggested that banks must be realistic on what they face in the way of competition. He voiced concern over the broad branching powers of S & Ls, emphasizing that they have tripled their number of D D A K T R O N IC S INC. SOLID of real concern. A substantial number of delegates felt that it will be necessary to form a political cartel to deal with Arab nations to bring petroleum prices down to a reason able level. One panel suggested that commercial banks should refuse to Branching Pressure take Eurodollars eminating from the Reporting on his attendance at the Arabs - or offer only 3 % to 4 %. James A. Smith, vice president in International Monetary Conference in Virginia in June, Mr. Lasater said charge of Mercantile’s correspondent that pressure for branching was department, told visiting bankers stimulated by central European that the correspondent bank busi banks that would like to see their ness is undergoing vast changes banks doing business in America but that it is very much alive and given “fair treatment’’ in view of the growing. Merc currently has nearly fact that U. S. banks in Europe are 1,000 accounts totaling $170 million. allowed branching privileges. He Guest Speaker indicated that the larger banks in the U. S. favor liberalized treatment for Guest speaker for the 1974 foreign banks doing business in America because it may be one conference was Arnold C. Weber, avenue for the larger banks to gain provost, Carnegie-Mellon University nationwide banking for themselves. and dean of the Graduate School of Turning to world problems dis Industrial Administration. He dis cussed at the Monetary Conference, cussed how economic policy is made. Mr. Lasater said that the interna He indicated that even though many tional bankers agreed that inflation issues have long-term implications, and the energy crisis continue to be politicans take the short-term approach because they must respond to the drumbeat of pressure from STATE constituents. He predicted that we will be lucky if we get down to a 7 % inflation rate before it moves up D A K T R O N IC S IN C . again. He expects the Administra tion to retreat from its tight money policy by year-end. branches during the past five years. He indicated that banks can no longer regard a given area as “our territory.’’ Instead, they must find better ways to serve their customers. TIME and TEMPERATURE D DISPLAYS D D A K T R O N IC S Call or Write for Complete Information IN C . N o r th w eFRASER s te r n B a n k e r , A u g u s t Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 DAKTRONICS, INC. P.O. Box 299 BROOKINGS, S. D. 57006 (605) 692-6145 BUSINESS SESSION drew e x c e lle n t attendance. Shown here are Vincent Cullen, chmn., First Natl. Bk., Burlington, and Jerry Fleshner, correspondent bk. off., host bank. 7 SLT can help you fight him! Money is tight and very expensive but your cus tomers' financing needs continue. SLT offers some solutions. Working capital loans provide high yields. How ever the risks are high. SLT’s collateral control programs eliminate much of the risk and provide the necessary return on your money. Banker’s acceptewces can be issued by your bank on marketable commodities. Changes in fed eral programs and higher commodity prices have involved banks more and more in the financing of commodities. A banker's acceptance, secured by SLT warehouse receipts, can cage the Crunch Bird and do the job without tying up your money. Let us suggest one of our collateral control pro grams to help solve some of your tight money problems. For information on fighting the Crunch Bird, call or write today. SLT WAREHOUSE COMPANY P.O. Box 242, Si. Louis, Mo. 63166 • 314/241-9750 • Offices in Major Cities N A T IO N W ID E C O L L A T E R A L C O N T R O L S E R V IC E S The Crunch Bird’s a mean critter https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn Banker, August 1974 B ank P rom otion s a n d Changes j D ROMOTJONS and changes have been announced by the following banks and financial groups. Bank «1 America, Los Angeles: John R. Grey, president of Standard Oil Company of California, has been elected a director of BankAmerica Corporation and an advisory director of Bank of America, its principal subsidiary. The bank has announced three senior appointments related to the reshaping of its global wholesale banking operations into a single World Banking unit. Named to newly created positions in the North America division are James R. Drumwright, who becomes senior vice president and manager of the loan production office in New York; Samuel H. Armacost, who becomes senior vice president and manager of the Chicago loan produc tion office, and Kendall D. Martin, who becomes senior vice president for credit of the Los Angeles-based North America division. Raleigh C. DeBow has been pro moted to senior vice president respon sible for the bank’s premises and real property worldwide. Mr. DeBow was named president in 1970 of Con tinental Service Company, the bank subsidiary that manages the bank’s premises throughout California, and will retain that post. The Bank of New York, New York: Stuyvesant Wainwright III has been elected vice president. He joined the bankin 1965, became an assistant trust officer in 1969 and trust officer in 1972. Bankers Trust New York Corpora tion, New York: William H. Moore, chairman and c h i e f executive officer of the cor poration and its principal subsidi ary, B a n k e r s Trust Company, announced recently that he will <-■; retire from both w. H . m o o r e ®f those positions on December 31, 1974, at which time he will be 60 years old. A . B R IT T A IN I I I Write, or call, for a copy of “ Simple Interest: The Answer,’’ and an actual sample of a Cummins-Allison Simple Interest MICR Payment Book. CA C U M M I N S C U M M I N S - A L L I S O N C O R P. 828 Waukegan Road, Glenview, IL 60025 • 312/724-8000 N o rth w e ste rn B anker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 J. W . H A N N O N , JR . On Mr. Moore’s recommendation the board of directors of both organ izations elected Alfred Brittain III to succeed Mr. Moore as chairman and chief executive officer and John W. Hannon, Jr. as president of both com panies effective January 1, 1975. Mr. Hannon was elected a director of the holding company. Mr. Moore, will remain a director and member of the executive com mittee of Bankers Trust Company and a director and member of the policy committee of Bankers Trust New York Corporation. Mr. Brittain cur rently is president of both the bank and corporation and Mr. Hannon is chairman of the bank’s executive committee. Mr. Moore joined Bankers Trust Company in 1937 and was elected chairman in 1957 at the age of 42. He became chairman of the corporation4 in 1966 when the holding company began operations. Mr. Brittain, 51, joined the bank in 1947 and was elected president in 1966. He was an officer in the United States Banking Department from 1951 to 1964 and head of the international banking department from 1964 to 1966. Mr. Hannon, 52, has been chair man of the bank’s executive commit' tee since January, 1973. He was with the Commercial National Bank anci' Trust Company when it was merged with Bankers Trust Company in 1951 and became executive vice president' in 1971. Bruce K. Nichols has been named president of Bankers Trust Inters national (Midwest) Corporation, a newly formed Chicago based subsidi ary. Central National Bank, Chicago: Herrell F. DeGraff, past president an<T c h i e f executive officer o f t h e American M e a t In s titu te , h a s b e e n appointed to the agricultur al advisory comm i 11 e e of the bank. Marion Bocach has been named M . BOC AC H vice president in the correspondent banking division?: Ms. Bocach began her banking career at Central National in 1951 as a com-" mercial teller. After transferring to the correspondent banking division in 1967, she was elected second vice president in 1970. Other promotions recently an nounced include: Peter A. Olberg ant Clifford H. Yentes, second vice presi dents, commercial banking; James F. Donovan, second vice president, and Charles Huss, senior manager, opera tions division. Commerce Bank of Kansas City: Walter E. Knowles has been elected vice president in charge of the bond department. He served most recently as manager of the municipal depart ment for Weeden & Company. Fromv 1957 to 1973 he was with First Bos ton Corporation in Chicago where he served as vice president in charge of municipal securities from 1966 to 1973. 9 You’re thinking beyond the routine correspondent assistance you’re getting no You expect prompt, thorough, professional service. And you deserve it Carry that thinking further. Bring your future to us. THE NORTHERN TRUST BANK 50 South LaSalle Street at Monroe • Chicago 60690 • (312'j 346-5500 • Member F D I C - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trust Northern N o rth w e ste rn Banker, August 1 9 74 10 j*. The First National Bank of Chi cago: Robert L. Heymann, senior vice president, has b e e n appointed deputy h e a d of the trust depart ment. He previ ously served as head of the cor porate banking d e p a r t m e n t ’s group one. He joined the bank R. L. HEYMANN in 1943. Homer J. Livingston, Jr., vice president, has been appointed to succeed Mr. Heymann as head of group one of the cor porate banking department. Mr. Liv ingston, who joined the bank in 1963 in the commercial management de velopment program, was promoted to vice president in 1969. First National Bank of Kansas City, Mo.: Stephen A. Melcher and Robert W. Wornall have been promoted to vice presidents. Mr. Melcher, who joined the bank in April, 1973, is a commercial banking officer. Mr. Wor nall has been with the bank since 1969 and is the officer in charge of the bank’s real estate loan department. First National City Bank, New York: Denis H. Burns, Joseph H. Wright, III, and Joseph P. Yambor have been named vice presidents. Mr. Burns is in charge of Citibank’s credit card services. Mr. Wright is a world A corporation group account manager. Mr. Yambor is responsible for person nel relations in metropolitan commer cial banking and upstate New York. Manufacturers Hanover Trust, Newr York: Joel I. Tirschwell has been pro-v moted to senior vice president in the personal trust division. He is senior in vestment officer for the division. Rich ard D. Wood, James P. Smith, Lester C. Samsen, John J. Pechulis, James D. Peeney and William Schwarz have been named vice presidents. Mercantile Trust Company, St. Louis: The bank has announced the following promotions: George M. Bag-1* gott, assistant vice president; Roy T. Blair, assistant trust officer; Doris Carthy and Anita C. Esslinger, inter national banking officers; Michael A. Junge, Larry M. Laminger, Jerome P. Shaw and David L. Wallace, data processing officers; and William L. Coleman and Donald C. Froelich, Sr., -» assistant data processing officers. t PROFIT CONSCIOUS ??? With the recent rate changes in many states, does your loan department have available to its' borrowers all of the newest programs? Are your credit insurance earnings where you be lieve they should be? Our package of Credit Life, A & H and/or Mortgage Life is the answer to any borrower's problem. Loan and mortgage protection, complete coverage for guaranteed payments is available with no extra work for you. ITT LIFE is now licensed in 45 states and has grown bigger and better to meet your changing needs. Would you like to see how we can increase your profits? For further information call the man in the picture, Dave Kluesner at 715/669-5405, or write to him at ITT LIFE, Box E, Thorp, Wisconsin 54771. J_L ITT Life Insurance Corporation Digitized N o r tfor h w FRASER e s te rn Banker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 J. P. Morgan & Co., Incorporated, New York: George P. Shultz, former secretary of the treasury and assistant to the President of the United States, v has been elected a director of the com pany and its wholly owned subsidiary, > Morgan Guaranty Trust Company. Mr. Schultz recently concluded nearly five and a half years of service in Cabinet positions in the federal gov ernment. He took office as Secretary* of Labor in 1969, was named the first director of the Office of Management and Budget in 1970, and became Sec retary of the Treasury in 1972. In that year he also was appointed assistant to the President. The Northern Trust Company, Chi-* cago: Robert F. Reusche has been promoted to executive vice president, trust department. Mr. Reusche, who joined the bank in 1952, served as sen ior vice president, trust, from 1968 un-* til the present. He was named head of the trust department in 1972. Valley National Bank of Arizona, Phoenix: Timothy Creedon, southern division manager, has been elected a senior vice president, and Elizabeth Cordova and John E. Daniels, both headquartered in the Phoenix head quarters office, have been elected vice presidents. 11 Kit-Picker’s Delight Choose from 11 complete Welcome Kits for your new accounts. The DeLuxe new account kit selection allows you to pick the style that says “Welcome” in the way that suits your particular bank. The matching envelopes and kit covers come in traditional and contemporary styles. Your customer takes home an attractive, handy kit with all the materials in one place. It creates a favorable impression for your bank. Your bank personnel will appreciate the pre-encoding on all documents for easy record keeping and speedy account number assignments. You can feature other bank services too with our cross serve inserts. Select the ones you prefer from our selection on Charge Cards, car loans, savings, or many others. DeLuxe new account kits will promote your bank image and are convenient for your cus tomers. Ask your DeLuxe representative for complete details. 0Ur bank •'■l* CHECK PRINTERS,INC. SALES HDQTRS. • 3440 N. KEDZIE, CHICAGO, ILL. 00618 STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn B anker, A u g ust 1974 12 American Exprès versus ordin The most widely accepted Travelers Cheque in America Refunds during bank hours - BANK AMERICA NO YES FIRST NATIONAL CITY NO YES AMERICAN EXPRESS YES YES Brand of Travelers Cheques COOK’S American Express Company American Express Travelers Cheques: the official Travelers Cheque of ^rs.expo'74. World's Fair Spoken*. USA May <1- Nov 3. 1974 Digitized N o r tfor h w FRASER e s te rn B a n k e r , A u g u s t https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 Whatever other travelers cheques can do, we ca" do better. We’re the American ExpressTravelers Cheque. We’re good at more places across America than any other travelers cheque. We’re good at over 48,000* more restaurants. We’re good at over 13,000* more hotels and mot We’re good at over 59,000* more service station All of these facts are documented in the A.C. Nielsen Company Survey, “A Report on the Leading Travelers Cheques in America.” (If you’d like a free summary, just send your name and address to Nielsen Summary, RO. Box 107, Bowling Green Station, 13 Refunds at night Refunds on weekends and holidays NO NO NO NO NO NO YES YES YES NO NO NO wYork, N.Y. 10004 and we’ll send you one.) But where we’re better isn’t the only reason why 're better. We’re the only Travelers Cheque that gives refunds night. And on weekends. And on holidays.To get a und during these times, all your customer has do is pick up the phone, call 0-221-7282 and report the loss. American Express Company arrange for him to pick up an . fergency refund of up to $100 one of more than 1,450 conniently located Holiday Inn Invented the Travelers Cheque refund locations across America. The customer who buys Travelers Cheques is one of your best customers. He’s the same customer who comes to you for mortgages, personal loans, educational loans and investment advice. Make sure the travelers cheque you sell him is the best Travelers Cheque. The American Express Travelers Cheque. Because what other travelers cheques can do, we can do better. ures projected from a sample selected and questioned by A.C. Nielsen Company in March 1973. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn B anker, August 1974 14 Oct. 13-18— National Association of Purchasing Management Seminar, Cor nell University, Ithaca, N.Y. Oct. 17-18— Association of Registered Bank Holding Companies Fall Meet ing, Kahala Hilton, Honolulu. Oct. 19-23— American Bankers Associ ation 100th Annual Convention, Hono lulu, Hawaii. Oct. 27-30— Bank Marketing Asssociation Trust Marketing Workshop, Key Bridge Marriott, Washington, D.C. Nov. 3-6— Bank Marketing Association Holding Company Workshop, Palmer House, Chicago. Nov. 10-13— Robert Morris Associates 60th Anniversary Fall Conference, A t lanta, Ga. Nov. 10-13— American Bankers Associa tion 23rd National Agricultural Con ference, Chase-Park Plaza, St. Louis, Mo. Nov. 10-15— American Bankers Asso ciation National Personnel School, Omaha, Nebr. Nov. 11-12— American Bankers Associa tion National Commercial Lending School, University of Oklahoma, Nor man. Dec. 1-3— American Society of Farm Managers and Rural Appraisers An nual Convention, Hilton, Omaha, Nebr. Conventions Calendar August 12-13— American Bankers Asso ciation National Trust School, North western University, Evanston, III. August 31-Sept. 4-—Twentieth Assembly for Bank Directors, Broadmoor, Colo rado Springs, Colo. Sept. 4-13— Conference of State Bank Supervisors. School for State Banking Department Personnel, Center for Con tinuing Education, University of Chi cago. Sept. 8-10— ABA Third National Corre spondent Banking Conference, Regen cy Hyatt House, Atlanta, Ga, Sept. 15-18—-Bank Administration Insti tute 50th Annua! Convention, Palmer House, Chicago. Sept. 15-18-—American Bankers Associa tion National Personnel Conference, Radisson, Minneapolis, Sept. 22-25— American Bankers Associa tion Charge Account Bankers Divi sion, Annual Convention, Palmer House, Chicago. Sept. 22-25— \A1UV 52nd Annual Con vention, Disney World, Orlando, Ela. Sept. 29-Oct. 2— Bank Marketing Asso ciation Annual Convention, Marriott, New Orleans. Oct. 6-9— Iowa Bankers Association An nual Convention. Oct. 7-10— Independent Bankers Asso ciation of America 8th Annual Semi nar for Younger Bank Officers, Ball State University, Muncie, Ind. Pacific Standard Life Constructs New Addition Pacific Standard Life Insurance Company, principal subsidiary of Pa cific Standard Life Company, has broken ground and begun construction A of a $726,900, two-story, 15,000 square foot rear extension of its execu tive office at 3820 Chiles Road in Davis, Cal. The new addition, comprising a< dovetailing extension of the present building, will take approximately nine y months to complete. Its design is by Barovetto, Carissimi and Rohrer of Sacramento, architects of the original building. The Charles F. Under Con struction Company, Sacramento, is th e ' contractor. The building construction „ contract, awarded on bid in April, also calls for a new roof, complete exterior painting of the entire building, and restoration of all landscaping neces sarily destroyed in the course of con-, struction. “Enlargement of our executive office has long been needed,” said Clifford N. Gamble, founder and president of the Pacific Standard companies, “to accommodate the growth we have ex perienced in the past few years, and the growth we anticipate over the next five years. By 1979 or 1980 we expect the company to have doubled in size and the staff to have increased some 40% from the approximately 150 per sons currently employed in the office.” Directors' and Officers’ Liability Insurance Many believe that buying this type of cover age is like buying automobile insurance. The first decision is the most difficult— whether to buy it. Once this is decided then it is simply purchasing a policy that states— “ Directors' and Officers’ Liability Insurance.” This could be an error in judgment, since there are a number of important differences between the current policy forms. This is the type of error (wrongful act) you are trying to insure against. Consult . . . INSURANCE PROGRAMMERS, INC. 3 2 7 South LaSalle S tre e t, Chicago, Illinois 6 0 6 0 4 Tel. N o. 3 1 2 9 3 9 - 3 3 6 6 R obert C arney Digitized N o r tfor h w FRASER e ste rn Banker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 L eo n a rd P u tzy > 15 A V -, Æ m INDIVIDUAL HANKS C OM M ITTED TO M U TU AL GR OW TH The Continental Correspondent Community SalesTraining • Confidence • Logic • Attitude • Sensitivity • Viewpoint • Mood • Emotion • Habit • Desire Where correspondents discover the art o f persuasion CONTINENTAL BANK CONTINENTAL ILLINOIS NATIONAL BANK AND TRUST COMPANY OF CHICAGO 231 SOUTH LA SALLE STREET. CHICAGO. ILLIN O IS 60693 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn B anker, August 1974 16 BMA A n n ou n ces 59th C onvention P rogram A FOUR day program offering an assortment of general sessions, departmentals, rap sessions and a spe cial marketing course has been ar ranged for bankers planning to attend the 59th annual convention of the Bank Marketing Association. The meeting is scheduled to start with Early Bird activities Sunday, Septem ber 29, and conclude Wednesday eve ning, October 2. All sessions will be held at the Marriott Hotel and Rivergate Exposition Center in New Or leans, La. Billed by BMA leaders as an un conventional convention, the meeting is designed as an educational experi ence, with sessions aimed at communi ty banks as well as large, metropolitan banks. A special feature will be a crash, six-hour course in bank marketing for new marketing personnel, line officers who want to apply marketing tech niques to banking and executive of ficers who want to implement market ing principles in their banks. The sessions will cover the marketing con cept, principles of advertising, new service development, planning, re search techniques, sales and sales training, and public affairs. Leading the six sessions will be Dr. Leonard L. Berry, professor of marketing at Vir ginia Commonwealth University, Rich mond, Va. The program will offer a series of departmental discussions each morn ing — five on Monday, and six on Tuesday and Wednesday. Five work shops will be conducted on Monday morning and Tuesday and Wednesday afternoons. There will also be 20 rap sessions on Monday held in conjunc tion with lunch and continuing until 2:15 p.m. These will be repeated on Wednesday. Addressing the general session Wednesday morning will be Howard Cosell, well-known sportscaster. Concluding the convention will be a Mardi Cras Party Wednesday eve ning with all the usual trimmings and featuring special jazz entertainment by Al Hirt. Executives Honor Don Lasater Donald E. Lasater, chairman of the board and chief executive officer of Mercantile Trust Company, St Louis, has been named Executive of the Year by the Sales and Marketing Executives . of Metropolitan St. Louis. Mr. Lasater was recently honored at a testimonial * luncheon for his leadership and per sonal involvement in promoting the in terest and welfare of metropolitan St. Louis. John F. McGillicuddy, presi dent of Manufacturers Hanover Trust Company, New York, was guest speaker at the luncheon. Foreign Trade Booklet The seventh edition of Washington Agencies that Help to Finance Foreign Trade has just been published by Bankers Trust Company, New York. The 28-page booklet describes how eight agencies located in Washington D C., can help business in the fields of foreign trade and investment. Requests for the booklet should be addressed on company letterhead to: Edwin H. Curtiss, vice president, In ternational Banking Department, Bank ers Trust Company, 280 Park Avenue, New York, N.Y. 10017. Join the Continental Wester n A3ENCYP00L For a Perm anent Refresher CONTINENTAL WESTERN INSURANCE COMPANY Phone (515) 278-3000 CONTINENTAL WESTERN LIFE INSURANCE COMPANY HOME BUSINESS AUTO LIFE N o r t hfor w e FRASER s te rn B anker, A ugust Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Phone (515) 278-3345 New Home Offices: 11201 Douglas Avenue (Interstates 35-80), Des Moines, Iowa 50322 DIVISIONS OF CONTINENTAL WESTERN INDUSTRIES, INC. 1974 17 onthe move ie different breed of cat in correspondent banking. The man from United Missouri Bank of Kansas City —the one who is your correspondent banker —is important to your bank because he’s well trained for the specific territory he serves. You’ll find him corresponsible and especially cognizant of your needs —whether credit overlines, pension and profit sharing plans, or municipal and government bond portfolios. That’s why United Missouri Bank is the different breed of cat in correspondent banking. So, to improve your state of banking, rely on the correspondent bankers from United Missouri Bank. None of the others come close. united missouri bank of kansas city, n. a. it i https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn B a n k e r, A u g u st 1974 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “M ake no m istake: MGIC is no ‘sleeping g ian t’ in our industry!” M a x H .K a r l, C h airm an o f th e B o a rd , te lls w h a t MGIC is d o in g in te rm s o f p eo p le and in n o v a tio n to b rin g n e w e ffic ie n c y and p r o fita b ility to th e hom e fin a n c in g m a rk et. “Look at the figures and you come to one conclusion. Private mortgage insurance is a major growth industry. “If you’re a company in this industry, you quickly learn another fact of life. Your ability to serve clearly lies in growing rapidly with the industry. “ As the founder of the private mortgage insur ance industry, we helped lay the cornerstone on which the vital highratio loan market has been built. “We’re the leader in this vital industry. Our people and our ideas have been growing, moving, changing every day of our busy corporate life. “ I ’m very proud of our people. They’re dedicated professionals who are always trying to find better ways to help you. And their varied business backgrounds, careful selection, and meticulous https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis training, I think, offer you expertise second to none. “We’ve brought together innovative thinkers and recognized leaders from the fields of finance, insurance, and business. By seeking new and better ways to do their jobs, these key MGIC people have greatly con tributed to the growth and profitability of home financing. “Our constantly growing force of field representatives reflects this same attitude. They’re trained by a manage ment team with unequaled depth of experience—men whom I like to think of as the ‘professors of private mortgage insurance.’ With this comprehensive training, when an MGIC represent ative first comes to see you, he’s fully qualified to help. “ We have a long record of innovations: the first secondary mortgage market sales facility, secondary market com puter service, insurance plans for joint and parti cipation loans, debenture insurance, and our new Mortgage Corp. funding. “MGIC Mortgage Corp. helps stabilize a lender’s money cycles by bringing a new source of outside funds to the home financing market—both through the buying of current mortgages and through future buying commitments. “Whether you want to buy or sell insured mort gages, our on-line computer system is an almost instant ‘match maker.’ Give us a call, tell us the interest rate, age of loan, term, and geographic specifics. A CRT read-out provides the information you want in seconds. And our great vol ume offers the widest range of availabilities obtainable. “ Our latest innovation is the Secondary Market Conference & Exposition held recently in Los Angeles. “This unique meeting brought together in one location both secondary market sellers and mortgage investors. Many on-the-spot transactions took place, and contacts were estab lished for more in the future. ‘These innovations—and more to come—will help achieve greater stability and profitability for the lending industry, so that home ownership in America may continue to enjoy healthy growth.” Mac Better Homes For M ore People Mortgage Guaranty Insurance Corporation MGIC Plaza, Milwaukee, W l 53201 20 F ederal F inancing Hank M akes D eb u t ' T ’HE NEW Federal Financing Bank A was inaugurated in June with the responsibility for coordinating and consolidating the borrowing efforts of about 20 federal agencies. Initial securities offerings were expected to be approximately $500 million, with the minimum denomination of $10,000. The FFB was created in 1973 by an act of Congress and is expected eventually to coordinate the financing needs of all federal agencies. At the outset it is acting for such agencies as the Postal Service and Ginny Mae; however, other agencies such as FN MA, Federal Nad Banks, FICB and FHLB are not included at this time. The Treasury, in its arguments be fore Congress for creation of the FFB, said the new bank will provide a cen tral source of financing, reducing the number of trips to the market by a diversity of government agencies, and result in lower interest rates, with the savings passed on to the borrowing agencies. Backers of the FFB envision its is sues as being closely parallel to Treas ury securities. Treasury Announces Plan For Interest on T&L Deposits The Treasury Department last month announced its plan to require banks to pay interest on a portion of the tax and loan accounts they now hold interest free. This action results from a Treasury study that maintains the imputed earnings value of the T&L deposits is now much greater than the value of services provided the Treasury and the government by the banks. It is planned to shift $1 billion of T&L accounts at the start into time deposits starting this fall. This is con sidered a short-term action. Later action is expected to result in Congressional legislation authorizing the Treasury to invest unneeded bal ances in short-term money instru ments, particularly with the banks holding the T&L accounts. The Treas ury states that by this method the im pact on market rates would be nearly eliminated. An interim measure that will be ‘‘pursued vigorously” and has no legal or regulatory changes involves two steps: 1. Place funds in 30-day time de posits. 2. “Intensify our efforts to increase our balances at the Federal Reserve banks, to the extent consistent with money market stability. . . This necessarily means that the Federal Reserve System will have to com pensate for greater swings in the Treas ury balance at Federal Reserve banks through existing techniques such as open market operations.” The study by Treasury encompassed 600 banks and states: “Projecting the survey data to the total universe of tax and loan deposi taries, the estimated excess of imputed earnings was over $300 million. “If the costs of issuing and redeem ing savings bonds, the other services In Memoriam A.W.JACKSON Our Long Time Friend and Associate. With Our Company Over 48 Years. Served as Vice-President Since 1944. Will Long Be Remembered. DIEBOLD I N C O R P O R A T E D N o rth w e ste rn B anker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 judged to be compensable, are added, banks in the aggregate still show a A large excess of earnings value over^ service costs, an excess of $260 mil lion based on the survey data.” The Treasury says it will also pro pose appropriations to compensate* banks for a limited number of services , they perform. Oklahoma Independent Bankers Organize State Association A number of Oklahoma bankers have organized a new association named Independent Bankers of Okla-< homa, following a meeting in late June in Oklahoma City. Officers are: chairman— Robert S ., Amis, president, First National Bank of Midwest City; vice chairman— * Gary Huckabay, president, First Mus tang State Bank of Mustang; secretary —Royce G. Wilmoth, president, Ex change National Bank of Moore, and treasurer— Del W. Garrett, president, ' Security Bank & Trust Company of Midwest City. Members of the new organization will continue as members of the Okla homa Bankers Association, according to the new president. Says Point-of-Sale Terminals Do Not Constitute Branching An opinion issued by Vern Miller, attorney general for Kansas, states that banking transactions conducted at a % point-of-sale terminal and transmitted electronically to a bank are completed inside the bank and therefore do not violate present state statues on branch ing or detached facilities. The Kansas Bankers Association had sought the opinion following its state convention in May, at which time the association voted to pursue an EFT > system for member banks. American of Chicago Opens Office in West Germany American National Bank and Trust Company of Chicago has received ap proval from the West German govern ment to open a representative office in Mainz, William G. Ericsson, presi dent, announced last month. Opening was expected about August 1, Mr. Ericsson said. It will be the bank’s third facility outside the United States and the first in continental Eu rope. The others are in London, estab lished in 1969, and Cayman Islands, opened in 1973. 21 Morgan Guaranty Trust Company OF NEW YORK i ' o n s u l i i l u l v i l s l a l v m v n l « / v o n i l i H i m - h i n r :fO . H t 7 t tH i-rr! nrs . 1H unts E L L M O R E C. P A T T E R S O N Cash and due from b a n k s ...................................$ 4,574,317,692 3,656,969,391 Interest-bearing deposits at b a n k s ....... U. S. Treasury se c u ritie s........................ 468,770,855 Obligations of U. S. government agencies . . . 100,983,180 Obligations of states and political subdivisions . 859.062,872 Other investm ent se c u ritie s.................. 387,602,915 Federal funds sold and securities purchased under agreem ents to resell . . . 162,923,788 L o a n s........................................................... 11,857,994,238 Premises and e q u ip m e n t........................ 112,594,913 Custom ers’ acceptance lia b ility ............ 870,397,735 Other a s s e ts ............................................... 830,343,718 Total a s s e t s ...........................................$23,881,961,297 President J. P A U L A U S T I N Chairman of the Board The Coca-Cola Company R. M A N N I N G B R O W N J R . Chairman o f the Board New York Life Insurance Company C A R T E R L. B U R G E S S Chairman, Foreign Policy Association F R A N K T. C A R Y l . i u b i l i t ins Dem and d e p o s i t s .....................................................$ 6,805,595,853 Time d e p o s i t s .......................................................... 3,581,695,689 Deposits in foreign o f f i c e s ................................... 7,921,763,734 Total d e p o s i t s .................................................... 18,309,055,276 Federal funds purchased and securities sold under agreem ents to repurchase . . . 1,279,666,661 Commercial paper of a su b sid ia ry ....................... 42,215,241 Trading account securities —n e t ....................... 82,578,173 Other liabilities for borrowed money . . . . 893,939,631 Accrued taxes and ex p en ses................................... 339,437,234 Liability on a c c e p ta n c e s ......................................... 874,518,957 Dividend p a y a b l e ................................................... 19,190,000 Convertible debentures of a subsidiary (414 % , due 1 9 8 7 ) ............................................... 50,000,000 Mortgage p a y a b le .................................................... 15,905,734 Other liabilities.......................................................... 548,777,801 Total lia b ilitie s ...................................................... $22,455,284,708 Itv s v r v v for possible loan l o s s e s ....................... $ Chairman of the Board W A L T E R H. P A G E 169,473,391 Chairman and President International Business Machines Corporation W. G R A H A M C L A Y T O R J R . President, Southern Railway System E M I L I O G. C O L L A D O Executive Vice President Exxon Corporation C H A R L E S D. D I C K E Y J R . Chairman and President Scott Paper Company J O H N T. D O R R A N C E J R . Chairman o f the Board Campbell Soup Company L E W I S W. FOY President, Bethlehem Steel Corporation T H O M A S S. G A T E S H O W A R D W. J O H N S O N Chairman of the Corporation Massachusetts Institute of Technology D O N A L D P. K I R C H E R President, The Singer Company C a p i t a l a m m a ts Capital notes ( 6 % % , due 1 9 7 8 ) ....................... $ 100,000,000 91,000,000 Capital notes (5% , due 1 9 9 2 ) ............................. Stockholder’s equity: Capital stock, $25 par value (9,500,000 shares) . 237,500,000 S u r p l u s ...................................................................... 427,085,000 Undivided p r o f i t s .................................................... 401,618,198 Total stockholder’s e q u ity ................................... 1,066,203,198 Total liabilities, reserve, and capital accounts $23,881,961,297 R A L P H F. L E A C H Chairman of the Executive Committee JO HN M. M E Y E R JR. H O W A R D J. M O R G E N S Chairman of the Executive Committee The Procter & Gamble Company D e W I T T P E T E R K I N JR. Vice Chairman of the Board D O N A L D E. P R O C K N O W Assets carried at $1,488,711,000 in the above statement were pledged as col lateral for borrowings, to qualify for fiduciary powers, to secure public monies as required by law, and for other purposes. Member, Federal Reserve System, Federal Deposit Insurance Corporation President Western Electric Company, Incorporated T H O M A S RODD Vice Chairman of the Board WARREN M. SHAPLEIGII A V i r Y a r l i 23 Wall Street, 522 Fifth Avenue at 44th Street, 616 Madison Avenue at 58th Street, 40 Rockefeller Plaza at 50th Street, 299 Park Avenue at 48th Street W n s i 1 o a s t Morgan Guaranty International Bank of San Francisco, 400 Montgomery Street, San Francisco, Ca. 94104 S a u t l i u n s t Morgan Guaranty International Bank of Houston, 1100 Milam Street, Houston, Texas 77002 A b r o a d London, Paris, Brussels, Antwerp, Frankfurt, Düsseldorf, Munich, Zurich, Milan and Rome (Banca Morgan Vonwiller), Tokyo, Nassau; Representative offices in Madrid, Beirut, Sydney, Hong Kong, Säo Paulo, Caracas https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis President, Ralston Purina Company GEORGE P. SHULTZ Executive Vice President Bechtel Corporation O L C O T T D. S M I T H Chairman, Executive Committee Aetna Life and Casualty Company H E N R Y S. W I N G A T E Director and Chairman Advisory Committee The International Nickel Company of Canada, Limited N o rth w e ste rn B anker, August 79 7 4 WORLD-TRADE MARK. Ban k of America’s man-on-the-spot is recognized in trade centers around the world as a valuable overseas con tact. An export expert with a wide knowledge of international banking, our man has a knack for expediting foreign trade transactions. And behind every man-onthe-spot are the many world wide resources of Bank of America. Since so m any other / firms and financial in stitutions find this jack of-all-trade such a big help, shouldn’t you see how you can ben efit? Our man-onthe-spot service can \ provide you and your customers with everything you need to do business on an international scale — letters of credit, re mittances, collections, foreign exchange and À even complete cash management. Through our global network of offices, our man can assist in pro viding financing from port to buyer, to include warehouse financ ing and export financing. Our trade expert will work closely with you in putting together the entire transaction. And if you like, we will participate in the credit package. For more information about what our bank can do for your bank, contact our regional correspon dent banking specialists at: Bank of America Center, 555 California St., San Francisco 94137, (415) 622-6142; or Bank of America Tower Bldg., 555 South Flower St., Los Angeles 90071, (213) 683-3288. BANKof AMERICA m C o rresp o n d en t Bank Service https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKOFAMERICA NT&SA • MEMBER FDlC 23 Have Trailer, Will Loan” Is Georgia Bank's Slogan The Farmers Bank of Douglas, Ga., develops a unique farm program UST WANTING to be good neighbors, The Farmers Bank of Douglas, Ga., has developed a unique farm program that has already drawn national attention and brought ,some definite benefits to one of Geor gia’s largest agricultural areas. Coffee County. The program could well be based on the slogan, “Have Trailer, Will Loan.” The south Georgia bank is making it possible for many farmers and Kproducers to invest in, raise, and sell ^more livestock than would have been possible without the bank’s concern and assistance. Since the program’s inception, A$350,000 worth of cattle has been brought into the county. Approximate ly 50 farmers who did not have any ^cattle prior to the farm program are now in the cattle business. The farm program is simple enough. <It involves a 16-foot livestock trailer that is loaned to any farmer who might need it to transport cattle and ,hogs. In addition, the bank loans special livestock scales to farmers and stresses proper management and rec ords keeping as an asset to profitable farm management. The scales are equipped with a headgate and squeeze chute for use in doctoring sick ' animals, branding, marking, dehorn ing and any other type of animal examination. J Other Assistance To go along with the equipment, the bank offers assistance in locating, financing and placing cattle through out Coffee County. The bank has https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Special rates and terms are made available for financing breeding stock. Local farmers simply tell their bank representative the type bull or cattle they desire and the bank helps in locating the breed and type wanted from testing stations and reputable ranches. Periodic checks also are made to see if the bank can advise the farmers in the care of the animals. The Farmers Bank arranges and coordinates meetings with representa tives from various groups such as the Young Farmers and the F.F.A. as well as with representatives from seed and feed companies and others who keep CHUCK Hitchman (right), agricultural representative and assistant cashier of the Citizens Bank, Oakland, la., recently visited in Douglas, Ga., for a week to ob serve the agriculture program that has been developed by the Farmers Bank of Douglas. Garland Thompson (left), heads the bank's farm program. the farmers up to date on the newest advancements in agriculture. Recently, a new machine was recommended by equipment dealers which will allow farmers to make hay baling a one-man operation. One farmer, using the new baler, can eliminate much labor cost by baling hay in 1,500-3,000 pound bales him self. The Farmers Bank’s program helps finance this kind of equipment. Many Benefits Garland Thompson, vice president of marketing, coordinates the agri business interest for the bank. Mr. Thompson is a veteran banker who has a degree in ag-economics and several years experience working with the U.S. Department of Agriculture. The bank’s staff realizes that there are many ways their farm program can benefit the farmer. “For example, we recognize that it is important that these animals are fed properly and the only way some farmers can do it is by silage,” says Mr. Thompson. “To help solve this problem, the bank has recently financed three silos and silo repre sentatives held a meeting in Coffee County to discuss with local farmers the possibilities of their using silos.” J.B. Oliff, a retired soil conserva tionist, is now a member of the farm program’s staff. He is well acquainted with the problems faced in relation to soil conservation, and he has used his expertise in tile drainage to help HAVE TRAILER T . ( Turn to page 47, please) N o rth w e ste rn Banker, August 1974 24 mIn 1973 and in recent months Q • interest rates rose very rapid ly. Citibank's floating base rate hit a EL) PALMER Chairman, Exec. Committee First National City Bank New York, N.Y. historic high of llV i per cent in midMay, as we went to press. Why was there such a sharp climb? Palmer: The biggest single reason was inflation. Interest rates basically have two parts. First, there’s the “real” rate, which is the amount lenders would charge for their money if there were no inflation in the economy. That rate usually runs around two to three per cent for short-term rates. And sec ond, there’s the inflation rate. This is the rate at which lenders expect prices to rise over the course of the loan peri od. You add the two together and, al lowing for certain minor variations, you have the going rate of interest. The main reason rates have risen so rapid ly is quite simply that inflationary ex pectations increased very substantially. # You referred to certain minor Q • variations that also determine interest rates? The Why other factors. Historically, however, that formula has for the most part held true. Palmer: Yes. All sorts of factors can come into play and influence rates Q # Wasn’t there a particularly strong on a temporary basis. There’s the • demand for loans last year? amount of outstanding credit at any Palmer: Yes, and that’s the other point. At the present time Americans look at what determines the level of have run up a credit bill which interest rates. Last year total corporate totals nearly $2 trillion. Business owes borrowing went up to about $515 almost $700 billion of this, consumers billion — an increase of $63 billion. owe more than $600 billion, the At the same time, the supply of federal government more than $350 money rose more slowly. So you got billion, and state and local govern a kind of classic demand-pull situation. ments owe about $190 billion. With The important thing to keep in mind credit of this magnitude, naturally is that interest rates are prices and as interest rates are affected when these such they respond to the laws of borrowers try to obtain more — or less supply and demand. When the demand —■ credit than lenders expected. for credit grows faster than the supply, If corporations should decide they interest rates go up. Of course, when need additional credit, interest rates demand slackens relative to supply, are likely to rise. If business borrowing interest rates decline. slackens, interest rates tend to decline. . But last year, while our base rate When the government has to raise a • rose rapidly, there was only a great deal of money and the lenders’ minimal rise in some other key interest supply of funds doesn’t increase pro rates — the bond rate, for instance, portionately, interest rates rise. If the and mortgage rates . . . Federal Reserve makes a significant Palmer: You raise an important change in its policies, such as slowing point. There’s nothing monolithic down the rate of growth of money sup about interest rates. There are, in fact, ply, short-term interest rates could be literally hundreds of interest rates, affected abruptly. However, these Fed about a dozen of which we watch actions generally occur when other quite closely. The longer-term rates, factors in the marketplace have already like the bond rate and the residential begun effecting a change in rates. mortgage rate, do not tend to fluctuate So, the neat formula — rates are as much over business cycles as do the equal to the real rate plus the inflation short-term rates. Moreover, inflation rate —• can be influenced in any ary expectations do not vary as much short run of, say, a month or two by over the longer run as they do in the Q N o r t for h w eFRASER s te rn Banker, August Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 # Some have complained that inQ • terest rates operate haphazardly y and as a result certain parts of the economy, notably the home mortgage market and state and local borrowing, K get squeezed out of the money market as rates go up. It has been suggested that this could be averted with some > form of credit allocation, which would set limits on the amount of credit to be given for the various segments of the national economy. What do you think about that? Palmer: 1 don’t agree. Experience shows us that the market is the best allocator of credit, just as it is of goods. A conversation I had the other day perhaps illustrates this point. I was flying to Dallas and got to talking with the pilot who had just bought a house in Dallas and was complaining that he had to pay what seemed to him a high interest rate on his mortgage. The fact is, he probably is an excellent example of someone who benefits from the free market system of allocating 25 Of course everyone would like to have low interest rates, but I think people must realize that bank interest rates are related to the bank’s cost of funds. When our cost of funds goes up we have to raise our prices, just as steel companies must raise their prices when the cost of iron ore goes up. We have trouble getting that point across. Too many people think interest rates are simply what bankers decide they ought to be. Fluctuations in interest rates actual ly serve a valuable purpose. When interest rates go up, it helps to moder ate the economy. It gets more expen sive for businessmen to build up their inventories and go ahead with expan sion plans and so they pull in their horns. As a result we cool off an over heated economy. We get a more even pattern of economic growth. Q # In 1971 Citibank instituted its * interest rates. He is able to be a jet pilot because some enterpreneur de cided to go out and lease a fleet of jet '■aircraft. That business isn’t too high on the list of social priorities. But because that entrepreneur could go out and bid for funds so he could have a fleet of jets, the pilot has a job doing ^what he likes to do. If we had a system of credit alloca tion, there might not be enough money to go around; so there might not be a private fleet of planes. Under a con trolled economy, in which credit was '"allocated, the government would al most surely divert more money into housing. That would be politically -popular. But the result? On the one hand, you would have too many houses, and on the other, you would .„have people who couldn’t afford to live in them. So you might be able to - get a mortgage more cheaply but you might not be able to get a job, or, at "least, not the kind of job you want. Of course, we do have a form of ^credit allocation. The FHA and VA guarantee mortgages. We have special rules for savings banks, and for savings and loan associations, which are designed to encourage them to make mortgage loans. The government has even directly subsidized the interest * rates on low-cost housing. All this tends to direct the flow of credit. But our market mechanism still works to allocate credit on the basis of supply and demand. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis # Many states have ceilings on the Q • interest rate for mortgages. Do you think these ceilings tend to be counterproductive? Palmer: Absolutely. Those laws don’t make sense at all because when competitive money rates go higher than the level at which the state laws anchor interest rates, lending institu tions tend to stop making mortgage commitments. The savings banks say, “Why should we put our money into mortgages when we can get a better yield on corporate bonds?” In those states many consumers can’t get mortgage money, builders stop build ing homes, and a lot of people con nected with the home-building industry get thrown out of work. So what was intended to help the consumer by giving him cheaper credit actually ends up hurting him. a theory that we can Q •m There’s keep interest rates down if the Federal Reserve Board would only be more accommodating in increasing the money supply. What’s your view on that? Palmer: Well, that’s a simplistic no tion — the idea that you just turn on the printing presses and make every body rich. If you increase the money supply at a rate that exceeds your economy’s ability to produce goods, you get inflation. And when you have inflation, you get stronger demands for credit and this produces higher, not lower, interest rates. * floating base rate formula and last year the formula was modified. What’s the status of the base rate today? Palmer: We’re now back essentially to our formula, and I think there’s a good chance that this formula will stick as government authorities come to realize that this is a fair way to price loans. However, our main intent was not to win acceptance of our formula as such but rather to show that the base rate is, in fact, a market rate. We’ve made that point. In 1969, for ex ample, we did not have our formula. Short-term interest rates climbed, but the bank rate was artificially held at 8 Vi per cent while our cost of funds went as high as 14 per cent. So we had to pay more for money than we could get for lending it. That didn’t stop lending, as the Federal Reserve Board hoped it would, because when people couldn’t borrow from banks they went to the commercial paper market or to some other form of borrowing where the rates weren’t restricted. During this past year our base rate was once again restrained. However, our cost of funds did not rise as far above our lending rate as in 1969. The base rate stayed in closer relation to money market rates — not always at the level we thought most appropriate, INTEREST RATES. . . (Turn to page 70, please) N o rth w e ste rn B anker, August 1974 26 Cattle — Asset or Liability? LEWIS LOWE President Lyon County State Hank Rock Rapids, Iowa OVERNOR Robert D. Ray visited the Iowa Banking Board recently to express concern over the current livestock situation. He urged bankers to do every thing humanly and legally possible to assist feeders. Cecil Dunn, superintendent of banking, believes that the industry is working its way out of the adverse situation. For this reason, he feels that bankers and their farm cus tomers should not resort to panic. There are perhaps 50 Iowa banks affected. Most of them G N o rth w e ste rn B anker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 have the same expertise in financing livestock as their farm customers do in feeding livestock. Both bankers and feed ers have been through similar situations before. Neil Milner, executive vice president of the Iowa Bank ers Association, plans a special program to inform mem ber banks on livestock loan legislation passed by the Con gress. The following comments were made by Lewis Lowe, president of the Lyon County State Bank, Rock Rapids, la. His bank is deeply involved in agricultural financing in one of Iowa’s largest hog and cattle producing areas. Most bankers in livestock feeding areas will undoubtedly agree with Mr. Lowe. “The old saying that you can’t judge a book by its cover is so true. Neither can you understand a feeder’s situation by reading the headlines — “Income received by farmers dropped during last six months. . . . Expenses paid by farmers increased . . . Many bankruptcies now pending for feeders . . Rural banks in trouble.” “Lyon County has a high concentration of cattle and hog feeders. The Lyon County Bank is an agricultural bank. One of our jobs is to watch the feeding industry, and to determine the security on our loans. “We have 219 lines of agricultural credit of which 168 are now borrowing a total of $5,638,364.07. A conserva tive net worth of these 168 borrowers on January 1, 1974, exceeded $13 million. Even if you considered that these people had lost $3 million to date, their loans are still cov ered nearly two to one by their net worth. “There are 139,000 farms in Iowa averaging 240 acres each employing $160,000 in assets. Eighty-one per cent of all capital employed is the farmer’s own equity. In the past 10 years, he has increased his average farm size 30 per cent, utilizing 24 per cent fewer farm workers and in only the past four years has averaged 37 per cent more pro ductivity from the same acres of ground. “Yes, today, the feeder’s income is dropping and he is suffering very severe losses and has been for a period of months. When he pays $40 to $60 per hundred pounds for feeders; cost of grain is from $40 to $50 per hundred; and he sells the fiinshed animal for $32 to $35 per hundred, you can readily see why the feeder is losing money. “And like everyone else his expense has increased on everything he must purchase. “But we are not talking about bankruptcy at the present time. What we are talking about is the farmer losing what he has earned over the past few years. “Yes, there will be a small percentage in financial trou ble. But we feel there will be a very small number of the Iowa feeders who are forced out of business because of losses. A few will say “Why fight it” and sell out because it isn’t worth working all year for nothing plus losing some accumulated savings. “The farmer’s profit is one of the few sources of new wealth that the state of Iowa possesses. When they do not make a fair return for their investment and labor, they will not be purchasing new machinery, automobiles, clothing, food products, life insurance, home and farm improve ments. Thus, all business will suffer decreases in income. “Our bank has every intention of standing behind our farmers even though our loan commitments may be larger and longer to tide him through this tough period. This is what banking is all about!” 27 ■ “Banking: Today & Tomorrow” is the theme for a series of new regional correspondent bank seminars spon sored by Continental Illinois National Bank and Trust Company, Chicago. Some 175 Iowa bankers attended the first seminar in Des Moines last month. Planned and directed in conjunc tion with the bank’s marketing depart ment, the seminar in Des Moines em phasized credit, investment and opera tional problems on the community bank level. Donald P. Jacobs, chair man of the finance department, North western University, Evanston, was the only “outside” speaker. Nine addition al speakers were officers of Continental Bank. Typical of the in-depth presen tations was one by Lawrence H. Frowick, vice president, on the subject, “Current Commercial Credit Con cerns.” Highlights of his talk follow: HE continuing trend towards narrower spreads between rates earned on assets and incremental cost of funds is heaping increasing pressure on bank management to do a better job of managing not only the loan and investment portfolios but also the deposit and liability structure. Money center banks have been con centrating on this for several years. To day, managements of regional and smaller banks are doing likewise. They, too, are facing higher money cost and disintermediation due to in creasing sensitivity regarding higher interest rates available in the market place. The regulators are pressing bank managements regarding proper price and types of loans which bankers should make, and this testifies to the importance of consumerism in our economy today. We have found it to our advantage to have more than one independent re view of approved credits which devel op problems. To structure this, we have formed a loan analysis commit tee with both permanent and rotating members who are chosen from among our lending officer groups to make an independent appraisal of a given credit. We make sure that the credit is analyzed by a lending officer other than the lending officer handling the loan account to assure independent and objective analysis. A Look a t Current Com m ercial Credit Concerns By LAWRENCE H. FROWICK Vice President Continental Bank Chicago, Illinois T Study Earnings Records Naturally, in our financial analysis we are looking for evidence that our borrower has an earnings record suf ficient to be expected to cover emer https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SEMINAR was planned by Robert E. Wahlgren, second v.p., and Larry Frowick, v.p,, Continental Bank, Chicago. gencies as well as scheduled obliga tions. In the economic environment in which we are operating, we all recog nize the difficulty for financial officers to fund corporate debt in the equity market because of the low P /E ratio of stocks these days. Except for the very large companies with prime rate credits, it is also extremely difficult to day to fund debt through the corporate bond market. Thus, we are giving much concern to the overall debt posi tion of each of our borrowers. We have always studied and relied on the borrower’s forecasts. However, we are now finding it increasingly dif ficult to analyze forecasts, due to our prejudice that a good customer will always be able to forecast as accurately as he has in the past. A conservative lending officer knows that this is not the case any longer. Successor Management Knowledge of a bank’s successor management and a determination of its quality is very important in the fi nancial analysis. This is particularly so with smaller companies where owner ship may have to pass to others in the case of death of existing management. Even though most of our loans to small companies (net worth under $500,000) are secured by a pledge of receiv ables and inventory and are further supported by guaranty of the princi pals, we insist on examining the buy and sell agreements. We become well acquainted with the family represent ing ownership, its attorney, and its CPA. Because of the importance of tax problems, we study very carefully the tax implications, as the future operation of small companies is always in doubt when there is a change in the manage ment. We expect our lending officers to be alert to possible shortfall in general corporate accounting when analyzing any credit for approval. In cases where a corporate borrower is late in getting his annual report of audit or interim figures to us, we keep the pressure on to find out why the delay. Sometimes such delays mean trouble ahead. 1973 Bank Losses Perhaps some of you have read re cently about the disclosure of 1973 bank losses. Of the 473 banks report ing (representing 65% of all U. S. commercial bank business loans) the net aggregate write-off was $302.5 mil lion. You may recall that the industries where these losses were encountered included electrical computing equip ment, holding companies, department stores, male clothing stores, sub dividers, and land developers, in that order. It is likely that during 1974 and 1975 we could add to this list single family home builders, general build ing contractors, real estate developers, and car dealers and cattle feeders. N o rth w e s te rn Banker, A ugust 1974 28 At this point, 1 would like to com ment briefly on observations of con cern in special areas in which we do business, except for agriculture. Consumer Loans I indicated earlier that delinquencies are up and losses are higher as com pared with a year ago. Because of high interest rates, it is advisable to check also the adequacy of income against the total debt obligations of the indi viduals. Contractor Credit The Robert Morris association has a forecast form with instructions en abling a borrower to forecast his com pany’s balance sheet, profit and loss statement, and cash flow. We require such information from our contractor customers, as well as others, in addi tion to a monthly report “Contractor’s Supplement Statement.” This report shows the status of contracts on hand and is submitted in order that we may watch the progress on each contract not yet completed. The Contractor’s Supplement State ment shows the amount and the de scription of the original contract, the amount subcontracted, the percentage of the contract completed to date, the estimated completion date, the cost of work performed, the total amount billed, the amount billed and now ow ing (exclusive of retainer), the amount of retainer, estimated job profit to date, and anticipated total profit on comple tion. Once a borrower is accustomed to submitting this information month ly, it becomes a part of his manage ment tools, and at the same time it serves as a financial input to the lend ing officer, enabling him to follow closely the progress of his contractor customer. It would be my observation that over and above financial information, contract information, and net worth position, I would regard the appraisal of management and the organization as the number one consideration in ap proving a contractor credit. We also watch for those things which give the contractor concern, such as: cost controls, labor, strikes, material price escalation, and informa tion as to whether the contractor is protecting himself with contingency factors priced into his contract to cov er escalations. For our file we like to have copies of all bidding to determine the philoso phy the contractor has in bidding. Overhead is observed to see that it N o rth w e s te rn Banker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 OUTSIDE SPEAKER — Don Jacobs, mem ber of the Hunt Commission and North western Univ. professor, is shown with Bill Grove, v.p., Continental Bank, Chi cago. does not become so burdensome as to overwhelm the contractor during re strictive times. Increasing overhead in duces the contractor to go for more volume and this can lead to trouble. It is also important to know about the sufficiency, quantity and maintenance of the construction equipment on hand. Retailers As we read in the papers, the large retailers are doing very well with no particular collection problems. How ever, the impact of price increases and earlier inventory build-up cannot help but affect profits down the line as price increases are anticipated to reach at least 15 percent. There is no particu lar shortage of commodities for retail ers as there is for manufacturers. Con sumer attitude will influence retail sales during the rest of this year, as 40% of retail transactions take place in the fourth quarter. We know that the consumer attitude towards purchasing is not good at the present time and, therefore, we would look for softening sales to be experi enced by the smaller retailers by the end of this year. Their expenses are up and they have not enjoyed the in creased level of sales that have been reported by large retailers so far this year. It is interesting to note that cata logue sales are up, partly attributed to locked-in prices at the time the cata logues were printed, and partly be cause consumers do not use automo biles to make purchases through the catalogue. Manufacturers In our dealings with various manu facturing companies, we observe that they could produce more than they are able to but there are material short ages. Backlogs are up, and there is increasing demand for credit. Managements are having difficulty converting excess short-term debt to long-term debt for reasons we have already cov ered. Finance Companies There are several problems lenders face in the finance company industry today, the most important of which are: 1. The commercial paper situation, where interest costs are higher than commercial bank rates and, thus, more use is being made of bank credit to fund finance company op erations. 2. The current high cost of money is approaching the ceiling that the fi nance companies can charge. Thus, management of finance companies must refine its operations and re appraise its branch operations in order to effect cost savings proce dures. 3. Many of the branches did not face up to delinquencies and losses dur ing recent past years which were profitable. Now these branches must formally write off losses and delinquencies which had been rewritten into new contracts. (We do not anticipate that finance company operations will continue to overstate income as they have been doing in the past because of not taking charge offs when they oc cur.) As we review finance com pany statements, we find out whether each of the branch offices is profitable, whether the manager has been there at least five years, whether there is at least $1,000,000 of outstandings (minimum needed to make money), and whether the company is taking steps to consolidate offices in order to save over head.) 4. Our review of small loan companies calls for peak debt ratios permitted of no more than 2.5:1. Delinquency (60 days or over) should not ex ceed 5% and losses should not ex ceed 2% of average outstandings. The average loan at one time was LOAN ANALYSIS . . . ( Turn to page 55, please) < " K * * y h > ^ > ^ 29 North Central Life Regional Manager Bob Florin discusses insurance programs with Bob Lanners. vice-president. Citizens State Bank. Brandon, Minnesota. AS YOUR MAN ON OUR PAYROLL! Bob Florin is a North Central Life Redcoat. A dedicated insurance professional in the fullest sense of the word. Although we carefully selected him and pay him, he reallv works for you. His job is to show you how to effectively and profitably m er chandise insurance services to your customers right along with your savings, checking, lending and other services. Bob is backed by a team of home office pros whose blended skills form the ultim ate in customer collaboration — “Red Coat Service” . “Red Coat Service”, (exclusive with North Central, and one of the reasons why w e’re considered the leader in insurance through financial institutions), provides tailored-to-your-needs insurance programs; creates direct mail and point-of-purchase materials for you; shoulders vour adm inistrative and book keeping chores; and, where necessary, even totally trains your staff. And, im portantly, “Red Coat Service” gives you access to the Red Coat Desk — North C entral’s unique, toll-free, direct, national HOT-LINE system that links you to our home office and makes available three vital benefits: (1) NO-LIMIT CRED ITOR INSURANCE. A program that allows you to get im mediate over-the-phone approval for extended coverages beyond the limits for which you normally can contract. (2) INSTANT RATE CALCULATIONS. North Central can solve your com plicated rate problems in a moment, via computer, whenever you have need for imm ediate calculations. (3) Instant answers to your questions from N CL’s Red Coat specialists. North Central sets the whole thing up for you. And con tinually solves any problems for you as you go along. W hat do you do? Make money! And protect your customers from the unexpected. For more information on how Bob, or any other of North Central's expert fieldmen can work for you, call the Red Coat Desk at the numbers shown below: Wis., N. Dak., S. Dak., Ia„ Nebr. - (8 0 0 ) 3 2 8 -1 6 1 2 Minn.- ( 8 0 0 ) 7 9 2 - 1 0 3 0 ; All Other Areas - (8 0 0 ) 3 2 8 -9 1 1 7 North Central Life Insurance Company NORTH CENTRAL LIFE BUILDING, 275 EAST FOURTH STREET, ST. PAUL, MINNESOTA 55101 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s te rn Banker, A ugust 1974 30 Bank on more from Mercantile... we don’t just sit in our bank. Why do Mercantile’s men understand your local situation better? We’ve been there. We go to the source. Want some personal correspondents? Call Mercantile at (314) 231-3500. Count on Mercantile. Where you count. MERCRflTIlE BRIX CORRESPONDENT BANK DEPARTMENT ST. LOUIS, MO. Digitized N o r t hfor w e sFRASER te rn Banker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 Mercantile Trust Company N.A. MEMBER F .D .I.C . 31 Illinois NEWS W IL L IA M O . KURTZ P r e s id e n t C h ic a g o ROBERT C, SCHRIMPLE E xe c. V . P. C h ic a g o 9 l/2% U sury C eilin g P assed in Illin o is '~P HE Illinois Legislature has sent to Gov. Daniel Walker a bill increas ing the state’s usury ceiling from 8% to 9Vi %. The governor has signed the bill. The legislation would permit lenders to charge up to 9Vi% on home loans for 12 months. It would revert to 8% unless the legislature acts again. In addition, service charges, or points, on loans over 8% could not ex ceed 3% and borrowers could not be penalized for renegotiating loans at less than 9Vi % when the 12 months end. Gov. Walker had insisted on elimi nation of prepayment penalties and the 3% ceiling on service charges. The Senate sponsor of the measure, Sen. Harger H. Hall, R., Bloomington, said that housing starts were down 19% in Illinois last year, largely be cause of the state’s 8% usury ceiling. Construction and real estate indus try lobbyists who pushed strongly for the bill had predicted a severe econom ic slowdown in Illinois, including loss of 60,000 construction jobs because lower rates would discourage housing starts. Opponents had contended that al though more money might be available for home financing, the new interest rate would be too high for middle-in come families. National Boulevard Bank Promotes Edward Kostecki Edward W. Kostecki has joined the National Boulevard Bank of Chicago as assistant cashier in the real estate department, according to Irving Seaman, Jr., chief executive officer. Previously Mr. Kostecki served as a loan officer at the Fairfield Savings and Loan. Downers Grove Bank Receives Ad Award The First Security Bank of Downers Grove was the recipient of a certificate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of merit for its ad on “free parking” in the Chicago Financial Advertisers sixth annual Eagle Awards competi tion for excellence in financial ad vertising. The award was presented to Ronald A. Kowalski, executive vice president of the First Security Bank of Downers Grove, at the CFA’s annual awards banquet at the Drake Hotel. Streat or National Elects President, Advances 3 Louis J. Weber, Jr., has been elected president and a director of the Streator National Bank. He succeeds Harold Moe, who has served as president for the past seven years. Mr. Moe resigned to accept a position as president of the Second National Bank, Danville. He will continue as a director of the Streator National Bank and has been elected vice chairman of the board. Mr. Weber joined the bank as con troller in 1917 and had been serving as vice president and trust officer. He is a Certified Public Accountant. Mr. Moe’s past banking experience includes positions with First Bank System banks at Jamestown, N. D,, and East Grand Forks, Minn. He also served as executive vice president, Peoples Bank, Antigo, Wise. Three other promotions also were announced. Jack Dzuris was elected assistant vice president and manager of the instalment loan department. He replaces Robert Ryon who becomes a vice president in the commercial and real estate loan department. Kenneth Brownsey has been elected an assistant cashier. “ Super Sixty’ ' Plan Offered in Des Plaines “Super Sixty” is a special package of money saving banking services and financial guidance being offered to per sons over age 60 by the First National Bank of Des Plaines. First Ogden Corporation Elects Senior Auditor First Ogden Corporation, Naper ville, has announced the appointment of Martin J. Stefanich to senior auditor. Formerly assistant bank examiner with the Federal Deposit Insurance Corporation in Mattoon, Mr. Stefanich will have field responsibilities for director’s examinations at First Ogden client banks. United States Check Book Company We are the professionals in the bank supply business. Our aim is to provide you with the latest available in bank stationery and printed forms. The familia r face belongs to Walt Schlenker, one of our professionals who lives in Bettendorf, la. Call Walt or your U. S. professional for your bank supplies. P.O. Box 3644 Omaha, Nebraska 68108 (402) 345-3162 N o rth w e s te rn Banker, A ugust 1974 32 Illinois News Bank of Sugar Grove Names Mason CEO The Bank of Sugar Grove, to be lo cated at the intersection of Cross Street and Illinois Route 47 in Sugar Grove, has select ed Frederick R. Mason as chief executive officer. M r. M ason, who will carry the title of vice presi dent and cashier, has served with F. R. M A S O N the Leland Na tional Bank since 1967. His most re cent position there was that of cashier and loan officer. Prior to 1967, he was self-employed in farming in the Le land area. Ag School Graduates 5 0 Diplomas recently were awarded to 50 bankers during graduation cere monies of the Fourth Annual Agri cultural Lending School, sponsored by the Illinois Bankers Association. James P. Ghiglieri, past IBA presi dent and president, Citizens National Bank of Toluca, presented diplomas to the graduating class at the Illinois State University in Normal. The commence ment address was delivered by John W. Cattle, chairman and president of Cattle National Bank, Seward, Nebr. No matter which way they blow, experience shows there are some things you can count on . . . Like B. C. Ziegler and Company institutional bonds. Since 1913, we have underwritten $1.3 billion in institutional financing, with never a default in principal or interest. Our issues offer a wide choict* of serial maturities, from one to fifteen years. Current yields are up to 8%. Named Vice President At Lisle Bank The Bank of Lisle has announced the appointment of James D. Caldwell of Downers Grove to vice president. Mr. Caldwell comes to the bank with more than 13 years of lending and management experience. He was previously employed as division branch manager and assistant secretary for the Village Federal Savings and Loan Association. And interim paper is available from 30 days to 9 months. Sound, secure investments like these belong in the portfolios of your bank, and your bank's customers. For our latest offerings, write or telephone collect. Offices in leading cities, coast to coast. B.C. Ziegler and Company West Bend, Wisconsin 53095 • Phone (414) 334-5521 A H C r e a tiv e F in a n c in g fo r A m e ric a 's H o s p ita ls Digitized N o r t h w efor s t eFRASER rn B a n ker, A u g ust 1974 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Drovers National Bank Announces Staff Changes Roland F. Porter has joined the staff of The Drovers National Bank, Chicago, as vice president and trust officer. Joseph H. Martin has been appointed assistant vice president and trust officer. Mr. Porter formerly was a vice president and trust officer of the Aetna State Bank, Chicago, and is a member of both the Chicago and Illinois State Bar Associations. “ I finally m et a big-city banker who knows w hat’s happening on Main Street. He’s w ith Am erican National?’ “His name is Roy West. And he really knows something about small-town banking. He was telling me about something called the Bond Portfolio Service. It’s a fully computerized investment management system, for even the smallest portfolios. It can give us a really sophisticated portfolio analysis, and complete bond accounting. And it actually reduces clerical costs, too. You know, I think he’s right: We’ve got more than a third of our assets in our investment portfolio, and we should let the computer give us a hand. N ext time Roy’s here, I’d like you to meet him. H e’s one big-city banker who understands our situation, too.” LaSalle at Washlngton/LaSalle at Wacker 60690/Phone (312) 661-5000/Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AMERICAN NATIONAL THE IDEA BANK SANK AND TRUST COMPANY OF CHICAGO Bonds ? We give the answer before you ask the question At Northwestern Bank, our bond specialists keep in daily contact with the market and our banker clients. Before any changes in the market can adversely affect your portfolio, we’ll call you. We’ll tell you the problem and the answer, before you think of calling us. Personal service like this is only one way our bond experts help make profitable decisions for you . . . in government, agency and municipal securities. Put our full-service correspondent bankers to work for you; call (612) 372-8123. Your Full Service Correspondent Bank S northwestern National Bank Of Minneapolis Don Darnell, Bond Analyst Howard Luick, Correspondent Banker Ralph Nelson Bond Analyst https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC 35 much of the lower area. Plans for the lower level of the bank call for revision of the present general lounge into a womens’ lounge and utilization of a large storage room as a new employee lounge with reading and conversation al chair groupings and a kitchenette and dining section for the employees. New storage spaces will be provided in the new addition to the south. Minnesota NEWS G. M . PIESCHEL T. L. JEFFERS P r e s id e n t Fxec. V .P . S p r in g fie ld M in n e a p o lis To Head Roseville Bank t K > v Bernhard ( Ben) Loewen, vice pres ident and cashier, has been named president of Mid America National Bank of Roseville. He will continue to serve as cashier. A native of Canada, Mr. Loewen had served with the Bank of Nova Scotia and sev eral U. S. banks before joining Mid America Bancorporation in 1970. He also had been associated with the First National Bank of Minneapolis and first Henne pin State Bank, Minneapolis. Elected at Virginia Bank Densel M. Mason has been elected vice president of the First National Bank of Virginia with responsibili ties in the area of lending, according A to R. O. Johns ton, bank presi dent. Mr. Mason’s previous banking experience in cludes seven years D. M . M A S O N with the First State Bank of Highmore, S. D., five years with the First National Bank, Miller, S. D., and over four years with First State Bank of Park River, N. D. All are affiliates of First Bank System, Inc., bank holding company headquar tered in Minneapolis-St. Paul. NW Bank, Sauk Rapids, Plans New Building Plans have been announced for a new bank building for the North: western Bank of Sauk Rapids, accord ing to Keith E. Winge, bank president. * Construction is scheduled to begin during the last week of February. Plans https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis also include expansion of the instal ment loan and real estate loan depart ments. The bank will feature a bi-level banking house and will encompass about 10,000 square feet of operating space. It was designed by architects Eugene Hickey and Associates. The new facility will have seven regular lobby tellers, one walk-up window and three automated drive-in teller units. Accounting operations and customer service departments will be located on the lower level. Victoria Banker Retires Erwin Holtmeier, cashier, Victoria State Bank, has announced his retire ment later this year. Mr. Holtmeier has been associated with the bank for 32 years. He began working there in 1942 and operated it alone for about five years. State Bank o f Faribault To Construct Addition Construction of a new 2,850 square foot addition to the State Bank of Faribault has gotten underway with a winter completion date announced by John Carlander, board chairman. The addition will be located on the site of the former plaza between the main banking and Ochs store, and will in clude both lower and ground floor levels. The new areas designed by DykinsHandford. Inc., Minneapolis based architects of financial institutions, will include a 24-hour lobby at the west end with money machine, two walkup windows and a package receiver for bulky items located between the walkup windows. A second lobby is planned leading to the main banking room at the southeast corner. The new exterior materials will match those of the existing bank and the corridor and vestibules will be finished with brick and will have floors of handcrafted tile stoneware. It is also planned to redecorate and refurbish the main banking room and New Prague Bank Names Vice President Jack Ellis has been named vice pres ident in charge of the loan department at the State Bank of New Prague. He joined the bank’s staff on June 17 of this year. Mr. Ellis, of Muscatine, la., began his banking career with the Comptroller of the Currency as a national bank examiner in the Wiscon sin-Minnesota area. Since 1968 he has been employed in three banks in all areas of lending and bank operations. Joins Albert Lea Bank Steven B. Thompson, Fairmont, has joined The First National Bank of Albert Lea as a Banco management trainee, according to Carroll C. Bergerson, bank president. Mr. Thompson had been associated with the North western National Bank of Mankato for the past three years. Elected at Red Wing Norman J. Sampson has been elected president of the First North western National B a n k of R e d Wing. Mr. Samp s o n moved to Red Wing from Virginia where he had been associa t e d with the Northwestern State B a n k for the past 14 years, N . J. S A M P S O N most recently as senior vice president. Mr. Sampson is a 1960 graduate of the University of Minnesota Business College and a 1967 graduate of the Central States Graduate School of Banking, University of Wisconsin, Madison. N o rth w e ste rn Banker, August 1974 36 W. Jacobson has joined R OBERT the American National Bank and Trust Company, St. Paul, as vicet president in the correspondent banking division John F. Nash, p re sid e n t, an nounced recently. Mr. Jacobson is a graduate of Wis consin State Uni R. W . J A C O B S O N versity at River Falls and holds a B.S. in agricultural economics (Honorable Mention). He joined the Federal Intermediate Credit Bank of St. Paul in 1961 as a trainee. Subsequently, he held posi tions of loan officer, branch manager, credit representative of the FICB of St. Paul, administrator or credit edu cation, and latterly vice president — field. In this position, he was responsi ble for the Production Credit Associ ation in Wisconsin and Michigan, which consists of 25 corporations. Dr. Sung Won Son, who has been a senior economist with the President’s Council of Economic Advisers, has been named vice president and econo mist of the Northwestern National Bank of Minneapolis, according to Philip B. Harris, the bank’s chairman. Mr. Son, a former economics pro fessor, served on the council for a year. The 29-year-old native of Seoul, Korea, received his BA degree in eco nomics from the University of Florida; MA from Wayne State University, De troit, and PhD from the University of Pittsburgh. * * * G. Richard Slade, president of Northwestern National Bank, St. Paul, has announced the election of Law rence Platt, Jr., and Joseph R. Bird to the bank’s board of directors. Mr. Platt is president of MidwayN o rfh w e s fe rn B ankerf A vg u st https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 Platt Company and has been a member of the bank’s trust committee since 1972. Mr. Bird, senior vice president and chairman of the investment com mittee for Minnesota Mutual Life In surance Company, is also chairman of the board for Personal Finance Com pany. * * * Northeast State Bank’s parking lot park, developed in August, 1973, re cently won an award for urban space beautification from the Committee on Urban Environment, a Minneapolis or ganization which annually presents awards for contributions to the livabil ity and beautification of the city. Walter Rasmussen is president of the bank. * * * Harold D. Keturakat, president of Mid America National Bank of Rose ville, has been named director of business develop ment for Mid America Bancor poration, Inc., ac cording to David A. Shern, presi dent of the Twin Cities-based hold ing company. H keturakat Mid America National Bank is an affiliate of Mid America Bancorporation. Mr. Keturakat has been with Mid America Bancorporation since its in ception in 1968. Earlier, he had been associated with Valley National Bank of Eagan Township, which later be came an affiliate of Mid America. * * * George H. Dixon, chairman and president of the First National Bank of Minneapolis, has announced the es tablishment of a collective short term investment fund, designed to afford employee benefit trusts an investment opportunity combining the extreme liquidity of short term investments and the high yields currently available on them. Charles F. Glaman, vice president in charge of the bank’s pension and profit sharing division, stated that par ticipation in the fund is limited to em ployee benefit trusts which are tax ex empt under the Internal Revenue Code and for which First Minneapolis serves as trustee or as agent for individual trustees. * * * An open house celebration was held recently at Cherokee State Bank, St. Paul. The bank followed a summer theme serving ice cream and refresh ments. The tellers offered each visitor a free summer survival kit consisting of first-aid, insect repellent and suntan lotion packets. James Gesell is the bank’s president. * * * Northwest Bancorporation, Min neapolis, and Southeast Banking Cor poration have been joined by a new partner, Canada Trustof London, Ontario, in their affiliated international merchant banking group, which has been renamed Canadian American Finance S.A. and its primary operating company, Canadian American Bank S.A. Canada Trust, with assets under administration of $4.5 billion, is one of that country’s largest trust com panies. It operates 86 branches and has significant holdings in several real estate developments and investment companies throughout Canada. In making the announcement, Henry T. Rutledge, chairman and chief executive officer of Northwest Bancorporation, said, “The addition of Canada Trust will not only broaden the merchant banking company’s capi tal base, but will further enhance its capacity to serve international mar kets. 37 We’ve got alm ost as m any ways to help you as Heinz has varieties. You d o n 't hav e to be in a pickle in order to take ad vantage of our 54 services. In fa c t, i t ’s m ore th a n likely they can keep you from ever getting into one. T h a t ’s b ecau se a t T h e F irst N ational B ank of Saint Paul, we’re equipped to h an dle anything you throw our way. From o v erlin e loans and a g ri-b u sin e s s, to p ro o f in t r a n s i t or c o m p u t e r a n d operations services. Even a dollars-and-cents forecast of your banking potential with our Forward Plan. Through our Correspond ent Bank Division, we can bring our bank to yours, and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis p u t the experience and capa bilities of a 120 year old bank to w ork to m axim ize y o u r bottom line. So why not call one of us from The Bank, and p u t us to work for you? D on Lindem an Southw estern M innesota and S outh D akota *W ith kind permission of H . J. Heinz. L aurence R. K ennedy Vice P resident Jam es T. Gowan Vice President (612) 291-5583 K en H eiser S outheastern M innesota, W isconsin and M ichigan — U pper P eninsula (612) 291-5573 (612) 291-5580 (612) 291-5577 Don Buckman M ontana and N orth D akota (612) 291-5579 H enry Snyder N o rth ern M innesota and Iowa (612) 291-5575 Phil Broom Tw in City M etro A rea (612) 291-5574 Jim Russell Twin City M etro A rea (612) 291-5581 Yourbottomline is our toppriority. N o rth w e s te rn B anker, A u gust 1974 38 Mi nnesota Ne ws First Bank System, Inc., Minneapo lis, has elected Herbert J. Wogsland vice president and liaison officer, succeeding Lee R. Mielke who re cently was elected president of First System Agencies, Inc. Mr. Wogsland previously was as sociated with First WOGSLAND Bank System’s Fargo, N. D., affiliate, The Merchants National Bank and Trust Company, as vice president and manager of the timepay department. Other promotions announced in clude: Albin S. Dubiak, Rodell L. Hol land, Mark 1). Johnson, and Larry D. Randall, assistant vice presidents; Carol L. Korda and Jerome J. Larson, investment officers, and Nancy J. Brasket, personnel officer. Mr. Dubiak began his affiliation with First Bank System in 1969 as a security analyst at the First Trust Company of St. Paul. Mr. Hof land began his banking career in 1967 as a trainee at First Edina National Bank. Mr. Johnson previously was associated with the 3M Company. Mr. Randall joined First Bank System as a person nel officer in 1972. * * H = Funeral services were held recently for George W. Benz, chairman of the board of the American National Bank and Trust Company of St. Paul, and of its parent organization, American Bancorporation. Mr. Benz joined the firm of Geo Benz & Sons, real estate management, after graduation from the University of Minnesota. In the early 1930s, under the name of George Benz Sons, Inc., he revived the name of Benz in the wholesale distillery business which had been operated since 1878 by his family. Mr. Benz was president of the company during the period of its operation. Also in the 1930s, Mr. Benz formed a dairy at Shakopee. During World War IT he was president and owned and operated the Arrow head Steel Company of Howell, Mich. In 1965 Mr. Benz became chair man of the American National Bank and Trust Company and vice president and trustee of Jacob Schmidt Com pany, a privately held investment company. In 1970 he was instrumental in the formation of the American Bancor poration, Inc., in which he served as first chairman and president. * * * First National Bank of Minneapolis, in its bond department, has promoted Terrance J. Dobson from resources officer to assistant vice president. In addition, seven new officers have been elected, as follows: David Q. Emmons, bond investment officer; Michael E. Boncher, correspondent banking officer; Jack L. Quitmeyer, loan operations officer, credit divi sion; Richard L. Peterson, commercial banking officer, interim construction loans division. Also, Eileen N. Dinneen, personal banking officer; Douglas C. Jones, investment officer, trust equity re search division; and James L. Ander son, trust officer, corporate trusts. s*® ***® ^ ..... . T. J. DOBSON m m m ? M. £. BONCHER INSTALMENT DEPARTMENT PROFITS M ore im p o rtan t than e ver b efo re ! PROTECT THEM Several hundred Upper Midwest banks utilize our single interest coverage, which we originated many years ago. No checking for primary insurance. instalm ent lending protection is our only business. Call or Write: G. D. VAN WAGENEN CO. 1 0 0 6 N .W , Bank B ldg,, M inneapolis 5 5 4 0 2 ( 6 1 2 ) 3 3 3 -2 2 6 1 Northwestern Banker, August 1 9 7 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Dobson, a native of Spokane, Wash., is a graduate of Washington State University, at Pullman, and Michigan State University, Lansing. He was with General Mills, Inc., prior to joining First Minneapolis in 1971 as manager of the money market division. Mr. Boncher represents First Min neapolis’ correspondent banking di vision in Wisconsin, Upper Michigan and a portion of Iowa. He is a native of Two Rivers, Wise., and a graduate of the University of Wis consin at Madison. He joined the bank in 1970. * * H = CAROL TAYLOR of data processing at NW Nat’l Life Insurance Co., displays 30-inchlong piece of magnetic tape representing the company’s 600 person payroll to be processed electronically under terms of an agreement with the bank. Virgil Dissmeyer, sr. v.p., signs the agreement while George P. O’ Leary, sr. v.p., operations, fo r NWNL waits his turn. The payment of insurance premiums —• without checks — has come a step closer for Northwestern National Life Insurance Co. (NWNL) with the signing of an agreement between the insurance company and Northwestern National Bank, both of Minneapolis. The agreement is the first involving an Upper Midwest firm and a member bank of the newly formed Upper Mid west Automated Clearing House As sociation, Inc. (UMACHA). The agreement provides for two ways of paying NWNL life and health insurance premiums electronically. Under one method, NWNL policy owners currently using the insurance company’s “pre-authorized check 39 uTLTU U T JIT L 7 Lf U IJ LT St. Paul’s newest landmark Suddenly, one of St. Paul’s oldest banks is now the newest. The new 26-story American National Bank Building brings classic white design with Space Age comfort features to downtown St. Paul. It will be St. Paul’s newest financial center. It will be bright and cheerful inside, too . . . with people to match. Walk by the American Bank, now in the final stages of construction, at Fifth and Minnesota, and see the newest bank in town. * New & # American N ational B a n k and Trust C o m p a n y 7th & R o b e r t 228 2 3 4 5 St. Paul. M inn. 55101 MEMBER FDIC N o rth w e ste rn https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker, August 1974 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 Bank Am ericani is move than m oney in feribault. It’s a pep pill for business. Kenneth Relyea, president of Farmer Seed and Nursery Company, says his profits are up. his mail-order business has grown and his accounts receivable are under control and BankAmericard is one of the reasons. John Carlander, Chairman of the Board of The State Bank of Faribault, says participation in Bank Americard has been the force that opened many new and profitable commercial accounts. It’s been the breakthrough to merchants that a progressive bank has to have. Restaurants, filling stations and motels in the area say they can trace many transient dollars directly to BankAmericard. Before ordering, customers ask, "Your sign says you take Bank Americard. right?" And all participating Faribault merchants say BankAmericard has given them instantcash flow, reduced accounts receivables, cut down collection problems and built good customer relations. This all comes as no surprise to Dale Harris, M arguette’s BankAm ericard Manager. He knows what BankAmericard can do for mer chants, for banks and for a community. Fari bault’s experience is typical. But Faribault and other communities where BankAmericard has had such im pact are in for an even more stimulating experience when BankAmericard’s new electronic transfer potential becomes a reality. That's coming soon. It will be important to you as a banker and to your commercial and personal customers. For advance information call Dale Harris at Marguette (612-370-2136) or your Marguette Correspondent Banker, We do things your way. Gary B, Wollan Avery G Fick Bill Addington Joan McCarthy 370-2154 370-2166 370-2165 370-2161 Bill Rosacker 370-2164 Len Erickson 370-2168 Correspondent Banking Department A Marquette National Bank M em b er F D IC 777 Marguette Avenue, Minneapolis, Minn, 55480 T h e B a n k A m e r ic a r d B a n k https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r tfiw » if» r n B a n k e r, A u g u s t 1974 42 Minnesota News In her new position, Mrs. Glaeser will be responsible for the customer service department at the bank’s new Drive-In/Walk-Up facility, Como and Doswell Avenues. Mrs. Glaeser has been with the bank since 1972 as a teller and manager of the Campus Banking Center. Roger M. Wittig recently has been appointed personal loan officer. Mr. Wittig has worked in the bank’s installment loan department since May, 1973. ■!* 'I* 'I* Promotions at Owatonna FIRST National Bank of Minneapolis' current new account campaign featuring English stoneware won four “ Olafs” in the annual competition of the Advertising Club of Min nesota, and here is the bank’s marketing team responsible fo r the sweep of awards. Shown left to right are (seated) William Winter, dir., marketing services; John Morgan, advertising, Gene LaVaque, exec, v.p., Stevenson & Associates ad agency; (standing) James Hannasch, prod, dev.; Gordon Malen, public relations; Mary Lehmann & Richard Boyum, sales promotion. plan may authorize their bank to charge their checking accounts for the amount of their insurance premiums instead of the insurance company writing checks on their accounts as at present. Under the other “bill-check” method, policyowners simply sign their premium notices when they receive them and return them to NWNL. In both cases, NWNL will electron ically feed transaction information to NW Bank which will service the accounts of its customers and will transmit information for customers of other banks to the automated clearing house. * * * Donald Janies has been appointed assistant vice president for personnel, compliance and purchasing at Dain, Kalman & Quail, Incorporated, Min neapolis, according to Richard D. McFarland, president of the regional investment banking firm. Mr. James joined DKQ in 1968 as dividend clerk and most recently served as special assistant in retail sales administration. * * * Keith W. Hughes has been named an assistant vice president in the marketing division of Northwestern National Bank of Minneapolis. He was formerly executive vice president of AFC Securities, Inc., a subsidiary of Associates Corporation N o rth w e ste rn Banker, A ugust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 of North America, South Bend, Ind., and was marketing manager for Con tinental Illinois National Bank and Trust of Chicago from 1970 to 1973. * Lois Glaeser recently was appointed administrative officer of the St. Anthony Park State Bank, St. Paul. A. M. Severson, president of the Northwestern National Bank of Owa tonna, has announced the promotions of Kenneth J. Bloomenrader, Jr., to cashier and Daniel K. Collins to assistant vice president and agricul tural representative. Mr. Bloomenrader began his bank ing career with Northwestern in 1961. He has been manager of the personal loan department and in January, 1972, was appointed assistant cashier. He is operations and personnel officer. Mr. Collins was appointed the bank’s agricultural representative in August of 1972, and in July of 1973 was promoted to assistant cashier. HILLCREST Mid America State Bank of Maplewood boasts a newly remodeled build ing. G ra n d O pen in g H eld a t M aplew ood B ank T T ILLCREST Mid America State -■--1 Bank of Maplewood recently held an all-day grand opening celebra tion at its new block-square location at 1815 North St. Paul Road in Maple wood. The newly remodeled building has nearly 25,000 square feet of space and is the largest building housing a Mid America bank. It features a six-lane driveup facility on its west side and the remainder of the block is an expansive black-topped parking lot. The bank’s operations will occupy about two thirds of the building; the remainder will be rented. Redesign of the building was done by the architectural firm of Bergstedt, Wahlberg, Bergquist, Rohkohl, Inc., St, Paul, and construction by Kenneth C. Johnson Construction Co., St. Paul. LeFebure Corporation of Cedar Rap ids, la., supplied the drive-in equip ment. Roland L. Nordlund is the bank’s president. 43 The eagle arrives in Minneapolis. We are pleased to announce the opening of our new office in Minneapolis. Minnesota. We look forward to serving our clients and friends in the northwestern area. For bids and offerings call Levor (Bud) Garnaas, a highly qualified government bond specialist. The number is (612) 333-5361. CARROLL „ McENTEE & McGINLEY INCORPORATED Room 279 The Baker Building Minneapolis, Minnesota 55402 Dealers in: U.S. Treasury Bills. Notes and Bonds; Federal Agency Debt Securities —including Ginnie Mae Pass-Throughs Atlanta • Boston • C hicago • Cleveland • Dallas * Denver • Fort Lauderdale • Houston M inneapolis • New York • P hiladelphia • Pittsburgh * San Francisco * W ashington, D.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s te r n B a n k e r, A u g u s t 1 9 74 44 Minnesota News MBA B an kin g S ch ool G radu ates "f SHOWN is the 1974 graduating class of the Minnesota School of Banking sponsored by the MBA on the campus of St. Olaf College in Northfield. (Left to right): Row 1— Don Stein, (instructor) Spring Lake Park; Peter Amidon, Excelsior; Marlyn Avenson, Park Rap ids; John Baumgartner, Richfield; Leon Becker, North Branch; Kenneth Behm, Kandiyohi; Darlene Androff, Minneapolis; Janet Bauch, Pine Island; Freda Christopherson, St. Paul; Gardella Johnson, North Branch; Ruth Koenig, Cottage Grove; Darlene Sunheim, St. Paul; Allan Beilke, St. Cloud; William Belford, Osseo; Dale Believeau, Pennock; Paul Bengtson, Spicer; Wayne Bezenek, Breckenridge; Glenn Uggen, (instructor) Wells. Row 2— Wayne Burlingame, St. Paul; Randal Burns, Dundas; Robert Carlson, Comfrey; Alden Chester, Madison; Curtis Christianson, Bloomington; Lawrence Conzemius, Hastings; Allan Fagley, Crystal; John Golaski, St. Paul; Lawrence Haubrich, St. Paul; Wesley Husby, Clarkfield; James Huston, Cannon Falls; Robert Johnson, Shelly; John Kostka, South St. Paul; James Kuehl, Lamberton. Row 3— Melvin Martens, Long Prairie; George Palmer, Minneapolis; Gary Wickre, Northfield; Ernest Wozniak, Brainerd; Roger Zellman, Young America; Dennis Williams, New Hope; Tyrell (Terry) Enge, Mankato; Jerome Hentges, Bloomington; Glenn Kindt, Ortonville; Dennis Klute, Westbrook; Dennis Kockelman, St. Louis Park; James LaBreche, St. Paul; Martin (Bud) LaPree, Rochester. Row 4— Francis Lee, Cloquet; Marvin Lemke, Ada; Alan Marcyes, St. Cloud; David Minks, Minnea polis; Jerald Morical, Alexandria; Rolland Nelson, Northfield; Wayne Neubarth, Arlington; John Peyton, Duluth; Robert Przybylski, Minneapolis; Richard Reiter, Canby; Odin Roberts, Carlton; Philip Rodberg, Columbia Heights; Victor Rolle, St. Cloud. Row 5— Rob ert Schlenner, Cottonwood; Michael Senn, Wayzata; Ronald Sheback, Jr., Underwood; Harold Soper, Brainerd; Darvin Stoltenow, Long Lake; Kit Svee, St. Paul; Lewis Swanson, Tower; Gaylon Swenson, Lindstrom; Vernon Swenson, Wells; Wayne Thompson, Thief River Falls; Dean Thrun, Waterville; Jerry Wendorff, Warren; Richard Willy, St. Paul. UMACC Elects Officers Maynard Lawrence, assistant vice president of the Northwestern National Bank of Man kato, was elected president of the Upper Midwest Agricultural Cred it Council (UM ACC) at its nine teenth annual con ference held re cently. Other officers M. LAWRENCE elected include first vice president, C. E. Mitchel, as sistant vice president, Dakota North western Bank, Bismarck, N. D., and second vice president, Harlan Schultz, Peoples Exchange Bank, Thorpe, Wise. State directors for 1974-75 are N. Rollie Lake, vice president, First Na tional Bank, Fergus Falls, Minn.; James M. Ross, assistant vice presi dent, Great Falls National Bank, Great Falls, Mont.; Roy Johnson, assistant N o rth w e ste rn Banker, A u g ust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 vice president, Merchants National Bank and Trust Co., Fargo, N.D.; Thomas Hansen, agricultural loan offi cer, Mobridge branch, First National Bank of Aberdeen, Mobridge, S. D., and M. R. Prouty, State Bank of Chil ton, Chilton, Wise. Tom Kleinschmit, Federal Reserve Bank, Minneapolis, serves as executive secretary. Promoted at Eagan Bank Richard E. Stevenson, president of Mid America National Bank of Eagan, has announced two promotions within the bank. They are Gerald A. Johnson, elected auditor, and Carol A. Monzel, elected assistant cashier. Elected Chairman at Fergus Falls Bank B. K. Soby has been elected chair man of the board of the Security State Bank of Fergus Falls. Mr. Soby is 1 president of Soby Construction, Inc., and one of the original founders of the bank. He has been a direc tor of the bank since its inception in 1956. Mr. Soby succeeds W. R. Olson. Open House at Le Roy O. JOHNSON C- A. MONZEi, JR. The First National Bank of Le Roy recently was host to approximately 200 area people who toured the bank’s remodeled facilities. 45 T > ROMOTIONS and other news announcements have been made by the following firms: The Central National Insurance Group of Omaha, Omaha, Nebr.: The company has an nounced the for mation of a prop erty improvement loan insurance di vision and the appoi n t me n t of Richard D. Beat ty, Sr., a s i t s m a n a g e r . The purpose of the new division is to provide credit insurance on home im provement loans made by banks and other financial institutions. Mr. Beatty is a veteran of more than 17 years in the instalment loan and consumer credit insurance field. He has been as sociated with Ford Motor Credit Com pany in Davenport, la., The Security Pacific National Bank in Porterville, Calif., and The National Bank of Agriculture in Delano, Calif. He came to his present company from Insured Credit Services, Inc., Chicago, where he was vice president of the company’s nationwide property improvement in surance program. CMI Investment Corp., Madison, Wise.: Marlin Lindquist has been ap pointed district director for North Dakota and northern Minne sota for this fi nancial services firm. Previously M r. Li ndqui s t spent over four years with Secur ity Bank in Billings, Mont . , where he was a vice president and manager of the mortgage loan depart ment. He also spent 10 years with Gate City Savings & Loan Association in Fargo, N. D., and has served as an economic forecaster for the National Association of Home Builders. Scarborough & Company, Chicago: Dornas Petrelis has joined the staff as https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a claim representative in the claim de partment. Mr. Petrelis has almost four years of private practice experience in commercial and civil law. He is a grad uate of John Marshall Law School of Chicago and a member of the Illinois Bar Association since 1969. Also announced was the addition of Frank Iantorno as account executive. He has over eight years experience in the insurance industry. James Talcott, Inc., New York: Luke L. Kavanagh has been elected an assistant vice president and Henry Topel assistant secretary of the busi ness finance division. Mr. Kavanagh is senior loan officer of the Atlanta business finance office. He joined the company in 1960. Mr. Topel joined the company in 1970. Previously he was a senior audi tor with Lester Witte, Certified Pub lic Accountants, and a staff account ant with Texaco, Inc. Louis Bologno also has been elected an assistant vice president in the fac tors division. Mr. Bologno recently joined the company as an account executive with the New York office of the factors division. Federal Reserve Changes J. David Hamilton, senior vice pres ident of the Federal Reserve Bank of Kansas City, was appointed officer in charge of the bank’s Denver branch, effective July 22. Mr. Hamilton suc ceeds George C. Rankin, senior vice president, who has resigned to become first vice president at the Federal Re serve Bank of Richmond, Va. Mr. Rankin, who will become sec ond in command at the Richmond Re serve Bank, joined the Kansas City Bank in 1956. From 1963 through 1971 he was vice president in charge of the bank’s Omaha branch. Mr. Ran kin was transferred to Denver in 1971. At the Richmond Reserve Bank, he will direct operations for about 2,400 employees at Richmond and at the bank’s branches at Baltimore and Charlotte, N.C. At Kansas City, Mr Hamilton has been in charge of the bank’s operations division, which includes check collec tion, accounting, loans, the money op erations, computer systems and data processing, and the budgeting, expend itures, and cost analysis function. Mr. Hamilton joined the Reserve Bank in 1960 and was manager of the planning department before being named to the official staff in 1966. He was promoted to vice president in 1971 and senior vice president in 1973. Mr. Hamilton is a graduate of the University of Kansas and the Stonier Graduate School of Banking, Rutgers University. In a related appointment, Henry R. Czerwinski was promoted to senior vice president at Kansas City and will succeed Mr. Hamilton as head of the operations division. Mr Czerwinski has been with the Reserve Bank since 1959, was named to the official staff in 1967, and promoted to vice presi dent in 1972. He is a graduate of Kan sas State University and the Stonier Graduate School of Banking, Rutgers University. He is a past president of the Kansas City chapter of the Ameri can Institute of Banking. FDIG Sues Directors o i Failed Bank to Recover Damages The Federal Deposit Insurance Cor poration has filed suit against 20 direc tors of the defunct United States Na tional Bank of San Diego, Cal., to re cover damages on bank loans to C. Arnholt Smith, his family and af filiates. The directors are charged in the suit with failing and neglecting to properly perform their duties. It claims that their actions, and failure to act, caused the bank to fail. Home Loan Bank Board Ups Farm Loan Powers of S&L’ s Commercial farm loan powers of federal savings and loan associations would be significantly liberalized by a Federal Home Loan Bank Board pro posed regulation that gives the added concept of “commercial farm enter prises” to the term “improved real estate.” Loans made on farm residences and property used as commercial farming enterprises would be repaid annually sufficient to retire the debt within 25 years. Commercial farming enterprise loans could be made on the basis of 80% of value. Daane Named Banking Professor at Vanderbilt J. Dewey Daane, former member of the Federal Reserve Board of Gover nors, has been named the Frank K. Houston Professor of Banking and Fi nance at the Graduate School of Man agement, Vanderbilt University, in Nashville, Tenn. N o rth w e ste rn B anker, A u g ust 1974 Bank, Sioux Falls; insurance, Ray Plowman, president, First State Bank, Armour; and legislative, Orville L. Bonacker, vice president and cashier, First National Bank, Sioux Falls. South Dakota NEWS Day County Bank Opens HENRY B. SCHEUE P r e s id e n t C h a m b e r la in J . I. M IL T O N S C H W A R T Z S e c r e t a r y H u ro n Named Sr. Vice President At National Bank o f S. D. Elden W. Ranee has been named senior vice president and manager of the Sioux Falls main office, Na tional B a n k of S o u t h Dakota. Mr. Ranee suc ceeds Martin J. Colton who will continue as exec utive vice presi dent, eastern di vision, until his retirement l a t e r this year. Mr. Ranee previously was manager of the bank’s Madison branch. He also has worked in official capacities for 10 years at the Huron branch of the bank. Thomas N. Hay ter Funeral services were held recently for Thomas N. Hayter, 82, a South Dakota banker for over 50 years. Mr. Hayter began his banking career in 1910 at the Fedora State Bank. He also worked at the First National Bank in Alexandria, Minn., the First National Bank of Vermillion and the Citizens National Bank of Sioux Falls. He joined the First National Bank, Sioux Falls, in 1935 as vice president and retained that position until his retirement in 1962. Mr. Hayter was a past president of the South Dakota Bankers Association. S L)BA Ann ounces Committee Chairmen Committees have been announced by the South Dakota Bankers Associa tion. Chairmen of the committees fol low: Agriculture, Ed L. Anderson, vice president and agricultural representa tive, First National Bank of the Black Hills, Rapid City; bank management, Charles D. Rogness, executive vice president, Union Bank & Trust, Sioux Falls; mortgage loan, Charles T. Undlin, president, First National Bank of the Black Hills, Rapid City; trust, A. R. (Bud) Olson, vice president and trust officer, Northwestern National Bank, Sioux Falls. Others include: education, Norm Grosz, assistant cashier, First National Bank, Sioux Falls; public-industrial re lations (to be bank marketing commit tee following council approval), Michael E. Swanton, assistant market ing officer, First National Bank of Aberdeen; instalment loan, Larry Cor nell, assistant vice president, Westwood branch, Northwestern National Day County Bank, Webster’s newest business, recently opened, according to Robert Franzen, bank president. The bank, which is operated under a charter granted to the First State Bank of Pierpont in April, 1904, will become the principal bank of the twounit group with the Pierpont institu tion changing its name to Pierpont branch, Day County Bank. The bank is housed in a new modi fied colonial banking house just com pleted on the southeast corner of Seventh Avenue North and First Street West. Duane Podoll, a former Webster High School teacher, is assisting in the management of the bank. Coming SDBA Events August 20-22, ABA First Re gional Bank Investments Workshop, Drake University, Des Moines, la. August 28-September 3, State Fair Booth (SDBA sponsored), Huron. September 9-13, Group meetings in Aberdeen, Mobridge, Spearfish, Mitchell and Brookings respectively. October 10-11, Instalment Loan Conference, Rapid City. November 6-7, Economic Semi nar for Young Adults, Pierre. November 8-9, South Dakota Bar Association, seminar on Uni form Probate Code, Sioux Falls. November 26, Bank Manage ment Conference, Huron. A b erd een B ank To B u ild N o rth w est O ffice GROUNDBREAKING ceremonies for the Northwest office of 1st Nat'l Bank of Aberdeen were held recently. Mayor Jeff Solem (I.) turns a spadeful of d irt with assistance from (I. to r.) C. P. (Buck) Moore, pres., bank directors and members of the building committee, Richard C. Hodgson & Richard E. Huffman, Jr., and Jim Martz, pres., bank employees' club. Construction is expected to be completed late this year. N o rth w e ste rn B a n ker, A u gust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 47 during 1951-1953. He has long been active in North Dakota VFW affairs and became state commander at the annual convention, which met in Minot, June 1-2, 1974. North Dakota NEWS E. E. K A U T Z M A N N W. J. DANER P r e s id e n t S e c r e ta r y Wisliek Bank Celebrates 65th Anniversary M ondan Security State Bank, Wishek, recent ly held an open house celebration marking 65 years of service to the Wishek and surrounding community. Those attending enjoyed refreshments and free gifts. Art Sayler is the bank’s president. B is m a rc k West Acres Bank Names Jean Bennett President Jean P. Bennett recently was elected president and a director of the Union State Bank at West Acres. He previ ously was vice president and cashier of the First National Bank & Trust Company of Fargo where he had worked for four years. A native of Jamestown, Mr. Ben nett moved to Montevideo as a young man and began his banking career in 1952 at the Union State Bank of Mon tevideo, now the Northwestern State Bank. He also has been associated with the First National Bank in Grafton as auditor and cashier and the State Bank of Virginia as cashier. He joined the First National Bank in Fargo as assistant vice president in 1970. Street. Richard O. Wold, bank presi dent, said the office will be housed in temporary quarters until a new perma nent building is constructed early next year. The present office consists of a drive-in and walk-up unit and a HAVE TRAILER . . . 14 by 60 foot mobile office building. (Continued from page 23) C. S. Youlden, Jr., assistant vice president, is the manager. farmers take water underground so that more soil can be utilized. There are 3,300 farm ponds in the Coffee Promoted at Jamestown The First National Bank of James County area and Mr. Oliff has been town has announced the promotions instrumental in the construction of of Wallace D. Eide and James W. many of these. He is also knowledge able in the marketing of timber. Many Peterson to assistant cashiers. farmers sell timber only two to three times in their life and his advice is available to them when they are ready to sell. 5 8 Attend First School o f Banking Thirty-eight North Dakota bankers attended the first session of the North Dakota School of Banking at the University of North Dakota in Grand Forks earlier this summer. The school is to be a continuing two-year school with one week sessions in residence each summer and is open to any state bank employee who has at least one year’s experience in banking. William J. Daner, secretary and general counsel of the North Dakota Bankers Association, is direc tor of the school. The group elected the following class officers: president, Peter K. McKenzie, assistant cashier, Lamb’s Bank of Michigan City, Michigan; vice president, Ruth E. Ramsey, vice president and cashier, Security State Bank, Adams; secretary-treasurer, Ronald H. Bartholomay, assistant vice president and loan officer, Mc Intosh County Bank, Ashley. Grand Forks Bank Opens Westgate Office Facility First National Bank in Grand Forks recently opened its new Westgate office at Gateway Drive and 42nd https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W . O. EIDE J . W . PETERSON Mr. Peterson joined the instalment loan department of the bank in February of 1973. Mr. Eide joined the bank in May of 1973. Foss uni Named Director O f Grand Forks Bank Duane Fossum has been named a director of the Community National Bank of Grand Forks. Mr. Fossum is manager of Member Services and Load Development for Nodak Rural Elec tric Cooperative Inc., in Grand Forks where he has been employed since 1947. Banker Elected Commander For 1 9 7 4 -7 5 State Y F W The North Dakota Veterans of Foreign Wars have elected Richard Grenz, president of the Strasburg State Bank, their state commander for 1974-1975! Mr. Grenz, a native of Hazelton, is a reserve officer who served on active duty with the U.S. Army in Germany Clubs Promote Agriculture The Farmers Bank participates in several clubs promoting agriculture. The bank sponsors the Coffee County Ag Club which has raised funds for a $100,000 Agriculture Arena, now under construction. The bank’s agriculture representa tives also provide transportation for farmers to many short courses at the Rural Development Center in Tifton. For those unable to attend, informa tion is passed on to the Coffee County farmers through regular radio programs called “Farm Talk” and through weekly newspaper articles. William. I.. Willis, bank president, is enthusiastic about the results of the bank’s farm program and says he has heard from interested people through out the United States. Several inquiries have been recieved from the Midwest as far as Montana and a banker from Iowa, Chuck Hitchman, expressed interest in the farm program and visited Mr. Douglas recently. The farm and agri-business depart ment was initiated in 1970 when assets of the Farmers Bank stood at $16 million. Today that figure has almost doubled with assets between $31-32 million. Many credit the aggressive farm program for much of the bank’s phenomenal growth. — End. N o rth w e ste rn B a n ker, A u g ust 1974 48 Colorado NEWS N. BERNE HART Denver President Colorado Bankers Association First of Southglenn Promotes 2 Officers Two officer promotions were ap proved recently at The First National Bank of Southglenn. Rockne Holmes, 46, was named vice president. He also retains the title of cashier. Prior to joining the bank in March, 1972, he was cashier at the First of Englewood. Paul L. Williams was named assist ant vice president. Mr. Williams, 36, was assistant operations officer. For merly at the First of Englewood, he joined his present bank in November of 1972. Denver Banker Receives Honorary College Degree ry DeLand, from marketing officer to assistant vice president, marketing, and J. Patrick McDuff, from assistant com mercial loan officer to commercial loan officer. Mr. Meckley also announced that Carolyn A. Gschwend has been ap pointed assistant mortgage loan officer. Central Bank Names Senior Vice President David Brofman, judge of the Denver Probate Court for more than 20 years, has been elected senior vice president, estate planning, of The Central Bank and Trust Company, Denver. The announcement was made by Max G. Brooks, board chairman. American Nat’ l, Denver Announces 2 Promotions Two officer promotions at American National Bank, Denver, have been announced by R. J. Frank, president. Alan J. Wentworth has been made assistant vice president and James D. Fountain is now assistant auditor. Mr. Wentworth will continue in the instalment loan department where he has served since joining the bank in 1969. Robert Morris Chapter Elects 1 9 7 4 -7 5 Officers William D. Loring, senior vice president of the United Bank of Denver, has been elected president of the Rocky Mountain chapter of Robert Morris Associates. Other officers elected for the year include first vice president — Bill Maltby, assistant vice president at Colorado National Bank, Denver; second vice president — Dave Pringle, assistant vice president at Central Bank & Trust Co., Denver, and secre tary-treasurer, Dick Scarlett, executive vice president of Cherry Creek Na tional Bank. Eugene H. Adams, chairman of the board of The First National Bank of Denver, was among five people who received honorary degrees from Color ado Collage at recent commencement exercises. Mr. Adams, immediate past presi dent of the American Bankers Associ ation and now chairman of its govern ing council, also served as president of the Colorado Bankers Association in 1962-63. He is chairman of The First National Bancorporation. National State, Boulder, Announces Staff Changes Richard C. Meckley, president of National State Bank of Boulder, has announced several promotions of bank officers. They are: Max R. Wiley, from commercial loan officer to assistant vice president, commercial loans; Joel Webb, from operations officer to as sistant vice president, operations; Jer- WILEY WEBB N o r t h wfor e s tFRASER e rn Banker, A ugust Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DELAND 1974 AN ARTIST’S rendering depicts the First of Denver Plaza which will undergo construc tion this year at the corner of 17th and California Streets. F irst of D enver P la za C onstruction Begins more than one-third C REATING of an acre — 16,500 square feet, to be exact — of open space in the downtown of a major city is more than simply a matter of planting some trees or installing some fountains. Take First of Denver Plaza, for example, which will be the newest and one of the most dramatic open spaces in downtown Denver. Scheduled for completion in the spring of 1975, the Plaza will cost approximately $650,000 and will be located at the northeast corner of 17th and California Streets, where the fourstory building which formerly housed the International Trust Company now stands. The Plaza will form a spectacular main entryway to the new First of Denver Plaza Building, and will be an open-space connector between that building, the existing 28-story First National Bank Building and a new sixstory structure housing the bank’s teller facilities. -*• 49 This is Bill Tumelty territory Bill is new to some of you. Like the other members of our team, Bill believes in meeting you face-to-face, and he’ll be out to get acquainted. No matter where you’re located on the map, there’s a member of our correspondent banking team w h o ’s got you covered. THeC6NTRflUfiNK Two Park Central • 1515 Arapahoe Street Denver, Colorado 80202 • (303) 893-3456 EEL E’ A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis «> N o rth w e ste rn Banker, August 1974 50 ARCHITECT’S sketch of the proposed First Westside National Bank in Great Falls. F irst W estside To Have N ew B u ild in g ROUNDBREAKING ceremonies were held recently for the pro posed new First Westside National Bank building in Great Falls. First Westside is a member of the First Bank System of Minneapolis. Construction of the new building is estimated to take one year. Palmer Construction Company is general contractor for the $1 million structure. Sub-contractors are Walter E. Tynes Co., Inc., plumbing and heating, and Cascade Electric Co. Davidson and Kuhr are architects. The building, which will cover 20,000 square feet, will have a base ment, main story, seven drive-up window facilities and parking spaces for 80 cars. The present building has been sold to Rocky Mountain Insurance Co. owned by Ed Judge, who will take over July 1, 1975. The new site will be located one half block east of the present building. James W. Connelly, president, said that confidence in Great Falls growth and growth on the west side prompted the new building. Bancorp oration Names Glasgow Banker to Board C. H. Brocksmith, chairman and trust officer of First Security Bank and Trust Company, Glasgow, has been appointed an advisory member of the Wyoming NEWS R. M. W . M IR AC LE C. M U ND ELL P r e s id e n t S e c r e ta r y C asper Joseph R. Lyman, a banking veter an since 1963, has been named presi dent of the new Bank of Wyoming, Sheridan. C. B. Metz, president of Metz Beverage, has been chosen chair man of the five member board which also includes Cooley O. Butler, Faires Barnett, Roger L. Mohns and Mr. Ly man. Eldon R. Green, assistant manager for the Mills Company, has been named assistant vice president in charge of customer relations and work ing with real estate, commercial and instalment loans. Steven William Ash has been named N o r tfor h w FRASER e s te rn B a nker, August Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 Elected Vice President of Helena Bank William D. Erickson recently was elected vice president of the First Na tional Bank & Trust Company, Helena, according to Robert F. Burke, presi dent. Mr. Erickson has been associatedwith the bank as an assistant vice president since May, 1970, and con tinues as managing officer of the timepay department. Valier Bank Elects Klimas Stanley H. Klimas has been elected vice president and manager of the Valier Bank of Montana, according to Charles W. Ruble, president of Bancorporation of Montana, the parent company. Previously Mr. Klimas was associ ated with Central Bank of Montana in Great Falls as assistant cashier and with the Eastside Bank of Montana, Great Falls. Security Invitational Golf Tourney Slated at ABA L a r a m ie New Bank of Wyoming, Sheridan, Elects Officers board of directors of Bancorporation of Montana. The announcement was made in Great Falls by Charles W .. Rubie, Bancorporation president and chief executive officer. h Mr. Brocksmith’s lifetime careers in banking and ranching have included service as president of the Montana Bankers Association, instructor with the American Institute of Banking,' director of the Federal Reserve Bank of Minneapolis, Helena branch, and permanent secretary of the American Bankers Association nominating com mittee. cashier. He will handle all internal op erations. The Bank of Wyoming is a member of Wyoming Bancorporation. It is ini tially capitalized for $400,000. Mr. Lyman, 35, began his banking career at the Union National Bank of Minot, N. D. From 1966 to 1970, he served as manager of the First Nation al Bank at Bend, Ore., and from 1970 until last February when he moved to Sheridan, he was manager of the Old National Bank at Walla Walla, Wash. Mr. Ash, 27, was assistant opera tions officer from 1969-1972 at the Boulder (Colo.) National Bank. Most recently he was cashier at the Bank of Georgetown, Colo. The Fifth Annual Security Invita tional Golf Tournament for bankers takes place October 18, 1974 (one day before the ABA Convention), at Del Webb’s Kuilima Resort Hotel and Country Club, Kahuku, Ohau, Hi. Scheduled is a full day of golf,iH wives’ events, parties, tours, and an award banquet with over $10,000 in prizes, including a trip for two to Eu rope and a chance to win a new Cadil lac — all hosted by Security Corpora tion, national marketer of equipment for financial institutions. Any banker interested in entering the drawing which determines partici pants should contact: Gary J, Griff, vice president, Security Corporation, 2055 S.E. Main Street, Irvine, Calif. 92705. Phone (714) 979-9000. 51 OFFICIALS of the Montana Bankers Association for 1974-75 are pictured with their wives. Left to right are: Immed. Past Pres. — Roger H. Ulrich, pres., First State, Malta, and Audrey; Pres.—T. A. “Tully” Vashus, pres., 1st Natl., Glendive, and Flo; 1st Vice Pres.—Al F. Winegardner, pres., 1st Natl. B&T, B illings, and Jayne; 2nd Vice Pres. — Phil A. Yates, pres., Citizens Bank of Montana, Havre, and Margaret, and Exec. Mgr —John T. Cadby, Helena, and Shirley. Record Crowd A ttends M ontana Convention B y BEN H A LLER, JR . E ditor ORE than 700 bankers and wives attended the 71st annual M convention of the M ontana Bankers Association at the Banff Springs Hotel in Banff, Canada last m onth. This was a record turnout and approxim ately 200 more registrants than attended the 1973 convention. T. A. “ T u l l y ” V a sh u s w as advanced to the presidency to succeed Roger H. Ulrich. Mr. Vashus is president of the F irst National Bank of Glendive. Mr. Ulrich is president of the F irst State Bank of M alta. Al F. W inegardner, president of the F irst National Bank and T rust Company of Billings, moved up from second vice president to first vice president. The new second vice president is Phil A. Yates, president of the Citizens Bank of M ontana, Havre. John T. Cady, Helena, continues as execu tive m anager of the MBA. Bruce M acLaury, president of the Federal Reserve Bank of M inneapo lis, delivered his address on “ The Fed and Dual B anking” Friday morning, taking issue on numerous points with objections raised earlier by Dr. Lawrence E. Kreider to the F e d ’s p ro p o sa l for m a n d a to ry reserves by all banks, both member and non-member. Dr. Kreider is executive vice president and econo m ist of the Conference of S tate Bank Supervisors, W ashington, D. C. Mr. M acLaury said the objections raised by Dr. Kreider have no substance and should be considered a “ red herring.” In his talk the following day, Dr. Kreider had an opportunity to refute comments presented by Mr. M acLaury. A digest of the rem arks by these two well-known banking leaders will be presented in the next issue of the N o rth w estern B anker. Peter J . McTigue, president, Green M ountain Power, Burlington, V t., spoke on “ The Energy Crisis” and stressed the fact th a t the energy problem is not contrived, th a t it is real and is one th a t will be long-lasting. Long-term solutions will be slow in coming, he said, but are being worked on now as they have been for some years. He emphasized the fact for M ontanans th a t their state and W yoming have valuable fuel reserves in the form of coal th a t can be processed to help meet the nation’s energy needs. A critical p art of such exploration and mining, he noted, will certainly be attention to the ecological factors involved, both before and after any mining efforts. K urt Gabel, president of Gabel A d v e rtis in g , C olorado S p rin g s , LEFT— Kurt Gabel, pres, of Gabel Advertising, Inc., Colorado Springs, Colo., and Dan Barz, a.v.p., Security T&S, B illings, display new emblem created for MBA advertising program. Mr. Barz is chmn. of the assn, committee. CENTER— B. Meyer Harris, pres., Yellowstone Bank, Laurel, and Homer Scott, chmn., Security T&S, B illings. RIGHT—Bob and Sally Wallace, Helena, and Wes Wertz, general counsel for Montana Bankers Association, Helena. Mr. Wallace was MBA secretary for 25 years until his retirement at the convention a year ago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s te rn B a n k e r, A ugu st 1974 52 Colo., presented a brief review of the new public relations and advertising program being undertaken by the Montana Bankers Association. Mr. Gabel’s agency has a major office in Great Falls, Mont., and was selected identity and the slogan “Only at a to handle the MBA program. He bank can you get it all.” said the association has opted for a He said television has been “position strategy” aimed at identi selected as the best medium through fying banks with an individual which the MBA can reach the '" Winners in the Ladies’ Golf Tourney were, left to right: Marie Tenge, B illings; Althea Andrew, Helena; Jane Hibbard, Helena; Helen Paige, Philipsburg; Jayne Winegardner, B illings, and Ruth Lillejord, Glendive. Gary Wollan, sr. v.p., Marquette Natl., Minneapolis; Bob Burke, pres., 1st Natl. B&T, Helena; Jack Banister, exec, v.p., 1st State, Thompson Falls, and Bruce MacLaury, pres., Federal Reserve Bank of Minneapolis. Don Buckman, v.p., 1st Natl., St. Paul, and his wife, Aggie; Paul Robert, pres., Bank of Sheridan, and his wife, Cora, and Adrian McLellan, pres., 1st Natl., Great Falls. Roily Thuleen, sr. v.p., 1st Natl., Minneapolis, and his wife, Eileen; Marty Olson, pres., Farmers State, Conrad, and his wife, Phyllis, and Kenny Wales, v.p., 1st Natl., Minneapolis, and his wife, Patti. Front row: Shirley Timmerman, Cindy Laird, Pam Noel and Pat Kenney, v.p., First Metals B&T, Butte. Standing: Dick Timmerman, pres., First Metals B&T, Butte; Jim Laird, corr. bk. o ff., Northwestern Natl., Minneapolis; Sam Noel, v.p., Seattle-First Natl., Seattle, and Connie Kenney. N o r th w e s te r n B a n k e r, A u g u st https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 Ed Jasmin, v.p. & t.o ., Northwestern Natl., Great Falls, and his wife, Bobbi; Len Busse, v.p., Continental Bank, Chicago, and his wife, Gretchen, and Dave Patten, Merrill Lynch Office, Minneapolis, and his wife, Beth. 53 greatest number of people. There will be two “seasons” for the television campaign. The first will run from September 9 to November 10 and the second from January 13 to March 9. This will be supplemented by a radio campaign which will also run into two segments —from September 9 to December 8 and January 13 to April 13. Some of the television commer cials were shown. Final filming with Montana bankers and subjects was to start this summer and be completed in August. Officials of the MBA are making every effort to get the usury rate situation resolved so that an adequate flow of money can be maintained to service the needs of Montana borrowers. The association also will keep the membership informed on factors affecting the subject of branch banking and holding company activity but does not plan to be involved as an association in legislation. The 1975 convention is scheduled to be held again at Jackson Lake Lodge at the Grand Teton moun tains in Moran, Wyo., and it is scheduled to be held June 19, 20 and 21, 1975-E nd Dub Paige, pres., Flint Creek Valley Bank, Phi I i psburg, presents g ifts to Audrey and Roger Ulrich, including the painting of Roger’s boyhood home. Jim Gowan, v.p., and Lloyd Leider, exec, v.p., 1st Natl., St. Paul; Jack Tenge, chmn., Midland Natl., B illings, and Jim Parker, v.p., Toole County State, Shelby. Harry Newlon, v.p., Western Montana Natl., Missoula; Clarence Hill, v.p., 1st Natl., Denver, and John Fix, v.p., Northern Trust, Chicago. Mary and Chuck Froehle, DeLuxe Check, Great Falls; Renee and Doug Longfellow, exec, v.p., Village Bank, Great Falls, and Sheila and Jack Giesler, 1st Natl., Great Falls. Bill Daner, secy., North Dakota Bankers Assn., Bismarck; Ruth and Gerry Anderson, 1st v.p., NDBA and pres., Bank of Tioga, N.D., and Bev and Bob Henry, v.p., 1st Natl., Great Falls. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Al Winegardner, pres., 1st Natl. B&T, B illings, and his wife, Jayne; Judi Calahan and her husband, Dave, v.p., United Bank of Denver. N o rth w e s te rn B a n k e r, A ugu st 1974 54 A. L. Toevs Elected President of OBA Alden L. Toevs was elected presi dent of the Oregon Bankers Associa tion for 1974-75 at the organization’s annual meeting held recently. Mr. Toevs, who is also president of the Citizens Bank of Corvallis, suc ceeds John J. Oliverio, vice president of the U. S. National Bank of Oregon, Portland. Named to succeed Mr. Toevs as president- elect was Charles R. Boyle, Jr., senior vice president of the Bank of California NA, San Francisco. Mr. Boyle is manager of the bank’s Portland office. George C. Cratke was elected to the new position of vice president of the OBA. The association has abandoned the titles of first and second vice president. Mr. Gratke is president of the Douglas National Bank, Roseberg. Jack L. Crenshaw was named treas urer of the association to succeed Norris N. Heinbuch, executive vice president of the Oregon Bank, Port land. Mr. Crenshaw is a vice president of another Portland bank, First National Bank of Oregon. Clackamas Branch Opens First National Bank of Oregon’s new $325,000 Clackamas branch opened for business in its new structure recent ly. The 4,500 square foot building fea tures six teller windows, expanded safe deposit facilities, night depository, drive-in banking window and confer ence room. The exterior is rough sawn cedar siding and bronzed glass. Archi tect was Robert Koch & Charles Sax. Application Approved An application by the First National Bank of Oregon, Portland, requesting permission to establish a branch at N. W. 22nd Avenue and N. W. Lovejoy Street in Portland has been ap proved. U.S. National Bank To Establish Branch W ashington NEW S R. E. BANGERT S e a ttle P r e s id e n t W a s h in g to n B a n k e rs A s s o c ia tio n W B A Elects President Richard E. Bangert was elected president of the Washington Bankers Association recently. Mr. Bangert is president and chief executive officer of the Pacific National Bank of Washington, Seattle. Robert E. Polachek, president of the Bank of Everett, was elected first vice president. George Briggs, senior vice president of the Seattle-First National Bank, was elected second vice president. Elected treasurer was Elmer M. Anderson, senior vice president of the People’s National Bank of Washing ton, Seattle. Elected to the board of directors were Carl A. Hanson, president of the Bank of Olympia, and Robert C. Whitwam, president of the American National Bank of Edmonds. Outgoing WBA president Harry Goodfellow was elected to serve on the governing council of the American Bankers Association for Region VI. Mr. Goodfellow is president and chair man of the Old National Bank of Washington, Spokane. 14 Promoted at NB of C The United States National Bank of Oregon has received permission to es tablish a branch at 200 Market Build ing, 200 S. W. Market Street in Port land. First National, Portland, Announces Promotions First National Bank of Oregon, Portland, has announced the following promotions. Elected vice presidents at the Portland headquarters are Richard N o r th w e s te r n B a n k e r , A u g u s t https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Beck, regional credit administrator; Paul Cook and Edward Lipscomb, both commercial loan officers, and Norman Pyle and Roger Thompson, auditors. Elected assistant vice presidents are Janice J. Wilson, affirmative action officer, and James L. Franzen, cor porate finance officer. 19 7 4 Four vice presidents are among those recently promoted at the Nation al Bank of Commerce, Seattle. Archie Hall was promoted from as sistant vice president to vice president, head office operations. He succeeds Robert J. Svare, recently named senior vice president and head of the bank’s new Washington division. Also promoted to vice president are Thomas H. Ginn and Dallas C. Wil son, head office trust department; and Ferdinand J. Augusztiny, main office. Another promotion at the main office is Ronald L Bosi, named assistant vice president. Michael B. Maxwell, manager of the Broadway office, moves to manager at Maynard Avenue following Alvin Rehn who transfers to the bank’s Queen Anne office as assistant vice president. Succeeding Mr. Maxwell as manager at the Broadway office is Kenneth L. Atkinson, previously with the head office credit department. In the head office international de partment, Kenneth J. Jurmu and Wil liam K. Gilmore were named interna tional officers; in the trust department, Edith M Pritchard was elected assist ant trust officer. Promoted to assistant cashiers are Mary A. Berthelson, Bellevue office; Elaine A. Kettwig, Auburn office; Bar bara Matsuoka, head office operations; and Agnes R. Thomas, Longview of fice. Elected at Seattle Bank As the initial step in its plan for regionalization, the National Bank of Commerce, Seat tle, has named Rovert J. Svare as senior vice president and head of its newly formed Washing ton division. Mr. Svare, in various manage ment capacities at R. i . SVARE bank offices in Kennewick, Wenatchee, Olympia, Bellevue and Seattle since 1947, moves up from vice president, operations and will direct the activities of six re gions encompassing 116 officers. Applications Filed Seattle — First National Bank has filed seven applications seeking per mission to establish unmanned branches in Spokane, Kennewick, Lacey, Yakima and Vancouver. U.S. Supreme Court Favors Merger of 2 State Banks The Supreme Court of the United States recently released its decision fa voring the proposed merger between the National Bank of Commerce of Seattle and the Washington Trust Bank of Spokane. Officials of both banks ex pressed their satisfaction with the court’s decision. 55 about the need for excellent man agement and high quality opera tions in order to feel secure. SHOWN are 1974-75 officers of the Idaho Bankers Association elected at the group's recent annual convention. Left to right are 1st v.p., J. Howard Gentles, v.p. & mgr., 1st Security Bank of Idaho, Boise; pres., Donald J. MacKay, v.p., The Idaho 1st Nat’l, Idaho Falls; 2nd v.p., Curtis T. Eaton, chmn. & pres., Twin Falls Bank & Trust; treasurer, Jenning D. Evans, v.p., 1st Security Bank of Idaho, Boise. > Elected IBA President Donald J. MacKay, vice president > of the Idaho Falls office of The Idaho First National Bank, was elected pres ident of the Idaho Bankers Association at the recent 67th annual convention in Sun Valley. * Mr. MacKay began his banking ca reer with the Buhl office of The Idaho * First National Bank in 1947. After a series of promotions where he gained experience in all phases of bank activi< ty, he was named area vice president with headquarters in the Idaho Falls main office in January, 1962. Bank of Idaho Promotions 5 The Bank of Idaho, Boise, has announced the following promotions: Harold D. Ryoppy, vice president and assistant manager; Lloyd E. Hill, vice president, commercial loan adjustment, administration, and Herbert F. Bolz, vice president, instalment loan ad justment. Nevada NEW S KENNETH J. SULLIVAN President Nevada Bankers Association Reno Bank Wins 5 Advertising Awards First National Bank of Nevada, Reno, has been honored with five awards for its 1973 advertising pro gram, one of them in international https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis competition in an original field of 3,500 entries. First National Bank Announces Promotions Lino Del Grande, manager of the Reno main office of the First National Bank of Nevada and veteran of nearly 40 years in banking, h a s been n a m e d a senior vice presi dent of the state wide institution. T h e announce ment was made by A. M. Smith, L. DEL GRANDE c h a i r m a n and chief executive officer. Mr. Del Grande will continue his duties at the Reno office. LOAN ANALYSIS . . . (Continued from page 28) $600, but now through the advent of being able to make second mort gages on homes, the average small loan is $1,300. The average pay back on small loans used to be three years and is now observed to be five years. 5. In reviewing the semi-annual and annual reports of audit, special attention should be given to the collection expense, charge-off prac tices, delinquency expense, and the amount of “cured to date” which is tantamount to a rewrite of a con tract. Overall earnings of finance companies are not up to those re ported in the past. A bank provid ing credit should be concerned Real Estate Because of the higher interest costs on home mortgages, it is more difficult to qualify a potential borrower today than has formerly been the case. Ob viously, he needs on the average $2,000 more income to successfully qualify for the same amount of loan he might have asked for a couple years ago. As a result, fewer of the middleincome people are able to buy homes, and low-income people are just out of the market now. There are few oppor tunities for resale as far as low-cost housing is concerned because the FHA is also out of the market. As you know, delinquencies, de faults, and foreclosures all are consid erably higher than they were one year ago. Very careful project and cost analy sis must be conducted by real estate lenders. We look for sufficient reserves to cover contingencies, financial re sponsibility of the sponsor, and, of course, the quality and terms of the permanent lender before we consider interim construction loans. The residential home builder is pretty much out of the market because of severe problems involving labor costs, strikes, high interest rates, short age of materials, slow sales, and diffi culty in finding mortgage loans. Commercial developers find long term interest rates from the usual sources are in the 9% to 10% range plus 1 to 2 points. Insurance compa nies and other long-term lenders are still active in providing long term credit for sound commercial and indus trial real estate projects. Summary In summary, I again want to point to pricing and to conditions as they are making the administrating and han dling of loans more difficult than ever before. Thus, we must rely less on what the past performance of our bor rowers has been and what our experi ence has been, and more on what the current basic credit analysis discloses in the light of our present economic environment. In other words, we must pay atten tion to quality of assets, say “no” more often, and place our credit decisions on the old fashioned analysis of the five “C”s of credit (Character, Capaci ty, Capital, Collateral, and the new “C,” Conditions). — End N o rth w e ste rn Banker, August 1974 56 MAKE A DATE W ITH THE DATA MAN! IOWA NEBRASKA T h a t’s Lee Bachand, Data Processing S pecialist fo r U.S. N a tio n a l’s C orrespondent Bank D ivision. He’ll bring to you facts and figures about how your internal acco u n tin g can be s im p lifie d —e le c tro n ic a lly —to free you and your em ployees from the headaches of day-to-day opera tio n a l problem s. Lee know s how to help. He was form erly the m anager of o u r Data Processing Sales and Service D e p t. His experience w ith over 50 banks in the Nebraskalow a area tells him exactly w hat the needs of a small bank in this part of the co u n try are. He takes your needs, adds his innovative know -how . and faster than you can say “ buzz —c lic k —bee p ,” h e ’s ro llin g your way w ith a com puterized plan to ease the load. Give Lee a call at 402-536-2072, and feed him some data about your bank. We guarantee that y o u ’ ll like his p rin t-o u t. U S NATIONAL BANK OMAHA Digitized N o r t hfor w e FRASER s te rn Banker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 57 Nebraska NEWS R. E. A D K IN S W. H. OSTERBER6 P r e s id e n t E xec. M g r. O sm ond O m aha A g C onference to Be H eld in G ra n d Islan d NUMBER of highly qualified ex A perts in various fields of agricul ture are scheduled to appear on the program for the Annual Agricultural Conference sponsored by the Nebraska Bankers Association September 4-5 at the Holiday Inn in Kearney. The pro gram follows: Wednesday, September 4 A.M. 11:00 Registration — Holiday Inn Lobby Noon Luncheon — Heritage Room P.M. 1:30 Harvest Room — Presiding: E. J. Thayer, chairman, NBA Committee on Agriculture; president, First National Bank, Wayne. Remarks — Richard E. Adkins, NBA president; president, Os mond State Bank, Osmond. “Financing Irrigation Develop ment” — D. D. “Bud” Riblett, Chief, Farmer Programs, Farm ers Home Administration, U. S. Department of Agriculture, Lin coln. “Futures Markets” — William Chapman, Chapman Commodi ties, Omaha. Coffee Break. *‘U. S. Meat Animal Center Re search Program” — Dr. Dan Laster, Reproduction Research Leader, U.S. Meat Animal Re search Center, Clay Center, Ne braska. “Agriculture in Nebraska” — Dr. Duane Acker, Vice Chan cellor, Agriculture and Natural Resources, University of Ne braska, Lincoln. Social hour (Heritage Room). Dinner (Heritage Room). “Consumerism and the Beef Industry” — David H. Stroud, president, National Live Stock and Meat Board, Chicago. Thursday, September 5 A.M. Buffet Breakfast ( H e r i t a g e Room). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9:30 Morning session (Harvest Room). Presiding — E. J. Thayer. “Cash Flow” — Larry Bitney, extension economist, Universi ty of Nebraska, Lincoln. “Financing of Pig Farrowing Coops” — Ryan Bloomquist, cashier, Farmers and Merchants State Bank, Bloomfield, Ne braska. Coffee Break. “Management of Livestock Feedlots” — H. W. Harrington, Harrington Feed Yards, Inc., Grand Island, Nebraska. “The Livestock Outlook” — Don Magdanz, executive vice president, National Livestock Feeders Association, Omaha. Noon Lunch (Heritage Room). Adjournment. Group Meetings W ill Feature NETS Report A special report on progress of the NETS Project Study Committee will highlight the six group meetings to be held during September by the Nebras ka Bankers Association. The report will be in the form of a film made in August giving full details of the com mittee’s findings. Titled “NETS Project Study on Al ternatives to Compete in Electronic Funds Transfer,” the film will be of key importance to many other state as sociations closely following progress of the Nebraska situation. The study was initiated to find a way for Nebras ka banks to compete with a Transmatic Money Service program being offered by First Federal Savings and Loan Association of Lincoln to its customers there and later in other Ne braska cities. TMS permits a customer to deposit or withdraw funds from the S&L by means of a remote terminal facility in the Hinky Dinky Supermar kets. Under the chairmanship of Robert E. Burkley, NBA vice president, the Project Study Committee has been working diligently for several months to research the alternatives and pre pare a working program for Nebraska banks. Mr. Burkley is chairman and president of the First National Bank of Fairbury. NBA President Richard E. Adkins, president of the Osmond State Bank, will open the meetings with a brief re view of NBA activities and give an in troduction to the NETS presentation. Because of its importance, this will comprise the entire business session at each group meeting. A discussion will follow showing of the film. Charlie Willey, humorist-motivator, of Moline, 111., will be the after-dinner speaker for Groups 6 and 4 at Scottsbluff and McCook. There will be no dinner speaker at the Group 5 meeting in Grand Island. Dinner speaker at the three group meetings the second week will be J. N. Christianson, also a humorist-motiva tor speaker, of Scottsdale, Ariz. He will address Groups 1, 2 and 3 at Lincoln, Fremont and Norfolk. The interior will include a lobby, four private offices, conference room and an expanded vault area. Construction Begins on Lexington Bank Construction has begun on a new Farmers State Bank and Trust Com pany, Lexington, according to James A. Hansen, president. The spacious, one-story, landscaped bank building was designed by W. D. Schlaebitz of Clark, Enersen and Associates. It will have 8,000 square feet of space and will be built with brick, steel and glass. Drive-in facilities and convenient parking will be provided. N ebraska G roup M eetin g S ch ed u le September September September September September September 17 18 19 24 25 26 Group Group Group Group Group Group 6 4 5 1 2 3 Scottsbluff McCook Grand Island Lincoln Fremont Norfolk N o rth w e ste rn Banker, August 1974 58 Omaha News T? RANK O. Starr, president and chief executive officer of The Omaha National Bank, has an nounced the fol lowing p r o m o tions and appoint ments: Raymond I. Howell to ex ecutive vice presi dent and cashier; Richard L. East man and Robert R. I. H O W ELL J. Ochs to second vice presidents; Robert L. Kirchner, M. Scott Newberry and Michael J. Winterhalter to operations officers; Nick L. Kostos, Vicki J. Nelson, Ed ward L. Pogreba and Ron D. Sladek to assistant operations officers, and J. Roger Meier to assistant international officer. Mr. Howell has been appointed cashier of the bank in addition to his present assignment as executive vice president and bank services division Digitized N o r t hfor w eFRASER ste rn Banker, A u g ust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ì9 7 4 head. Mr. Eastman joined the bank in January of this year as assistant man ager of the leasing department. He was named leasing officer in February, 1974. Mr. Ochs came to the bank as a credit analyst in 1972. * * * Kcrmit Hansen, president of the United States National Bank, has an nounced five promotions and an ap pointment. Robert R. Culver, Dennis M. Ken nedy, Richard E. Kuhns and Noble E. Vosburg have been named vice presi dents. John S. McCune has been pro moted to assistant vice president and Thomas L. Patton elected assistant cashier. Mr. Culver, 36, manager of the mortgage loan department, has been with the bank for 10 years. He was named assistant cashier in 1968, as sistant vice president in 1972, and de partment manager in 1973. Mr. Kennedy came to the bank in R. E. K U H N S N . E. V O S B U R G 1967 as assistant controller. He has also been assistant vice president, op erations division. In 1973 he became a commercial loan officer. Mr. Kuhns has been with U. S. Na tional for 20 years. He began as a teller, and also has served as assistant manager of the drive-in facility, assist ant cashier, and assistant personnel manager. He is a commercial loan of ficer. Mr. Vosburg joined the bank in 1967 as a management trainee. In 1969 he was named manager of the Master Charge department and in 1972 was named commercial loan of ficer. Mr. McCune joined the bank in 1968 as a management trainee and al so worked two years as a credit analyst in the loan services department. He as ß sumed his present position as corre spondent banks representative in 1972. Mr. Patton, an instalment loan counselor, joined U. S. National in that position in December of 1972. A na tive of Rome, N. Y., he managed of fices of an Omaha small loan company for seven years before coming to the bank. * * * Funeral services were held recent ly for Lewis C. McVea, a long-time Omaha banker. Mr. McVea, a former vice president and head of operations for The Omaha National Bank, was 69. He joined the bank in 1919 at the age of 14 as a bank messenger and worked his way up, being named cashier in 1952. He became vice president and head of op erations in 1959 and retired in 1966. 59 put your customers in touch with the world. Your Customers may have mar keting potential in Europe, South America, all over the world, And they may not even know it, Do your customers a favor. Ex amine their situations and if you recognize possible international marketing capabilities, get in touch with Paul J. Quinn. He's Vice President of the International De partment of First National Bank. Paul will help you analyze your customers' international poten tials. He can give you worlds of a d vice on m arketability and planned approaches. And he's got a whole staff of global ex perts behind him. Call Paul soon Toll Free at 800642-9907 from Nebraska. From states adjacent to Nebraska call 800-228-9533. And help lead your customers to the world. first national bank of omaha ■ ¿K * Y x i're in first ^ n a tio n a l te rrito ry https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn Banker, August 1974 60 Nebraska News F irst N a t l 9 C olu m bu s9 H olds Open House FIRST National Bank and Trust Company of Columbus recently held an open house in its new auto bank and remodeled down town bank. Some of the new features of the bank include a customer lounge in the lobby, a computer room, consolidated customer service department and carpeting. Shown on the left is an outside view of the new Auto Bank. On the right is the newly remodeled main bank. George Prochaska is the bank's president. DeLuxe to Build Omaha Plant DeLuxe Check Printers, Inc., has acquired land and has let contracts for construction of a 22,000 square-foot plant in Omaha, according to J. L. Rose, president. The new plant is ex pected to start printing orders in the spring of 1975, serving banks in cen tral and eastern Nebraska and western Iowa. It will be located in Foxley In dustrial Park. Promoted at Bellevue Bank First National Bank of Bellevue has announced the promotions of Gary F. Friedenbach to vice president and cashier, and Ron Johnson to assistant vice president. Mr. Friedenbach joined the bank in December of 1971 having been previ ously employed by several area banks including the Southwest Bank of Omaha. He is in charge of general op erations and personnel. Mr Johnson joined the bank in June of 1972. He is a loan officer in the instalment loan department. you at the Nebraska Group M eetings Chiles, H eider &Co., I nc. MEMBER NEW' YORK STOCK EXCHANGE, INC. 1300 W O O D M E N TOW ER OM AHA, NEBRASKA 68102 ■ (402) 346-6677 N o rth w e ste rn Banker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 61 I look at correspondent banking as a mutually beneficial arrangement. After all, helping other banks helps us as well. When it comes to correspondent banking, there’s no such thing as a problem -only challenges. And I like challenges. Try me. > By taking advantage of our correspondent banking program, you can avoid tying up a large amount of capital in a single venture. It just makes sense. I think a bank like ours is just the right size for your business. We’re big enough to give you every service you could need and small enough to provide the kind of individual attention you require. Rich Nelson Jim Norris Correspondent Bank Officer Correspondent Bank Officer Ray Weilage Wilbur Baack Correspondent Bank Officer Vice President N SC National B ank o f Commerce Lincoln, Nebraska 68501 Member FD IC Made from 100% genuine people. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn B a n ker, August 1974 62 spring of 1975, the main building will feature structured concrete frame con struction with pre-cast concrete ex terior. A temporary structure is now open at the location. Lincoln News First Stock Yards Bank Plans Market Day in St. Joseph Final plans were announced recently by First National Lincoln for its new AutoBank Facility to be located at 56th and 0 Streets. The facility will include a 100 by 100 foot four-story main building, with basement, six drive-in teller windows stations, and parking for approximately 70 auto mobiles. First National will occupy the lower level and approximately one- half of the street level floor of the main building. The remainder of the street level floor and the second, third and fourth floors will be available for leasing. Space occupied by the bank on the street level will be devoted to bank teller services. Safe deposit boxes will be available to customers in a vault located on the lower level. Scheduled for completion in the SHOWN is the proposed new office of the First National Bank. Let Me Help You W ith ... Your Credit Insurance Needs Group • Individual Life • Accident & Sickness T e le p h o n e -Q uick Service on our WATS Line in Nebraska. Dial your Access Code, then 800-742-7335. Steve S utton THE LINCOLN LINCOLN, NEBRASKA N o rth w e s te rn Banker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 COMPANY Banks from a several state area will be guests of the First Stock Yards Bank of South St. Joseph, Mo., for the bank’s 18th Annual Market Day on September 4. Registration will begin at 9:00 a.m. in the lobby of the bank, located in the Livestock Exchange Building in the Yards. The first activity will be a tour of the South Side Industries in St. Joseph. This will be followed by a luncheon at the bank’s new King Hill Plaza facility, at which a report will be given on the current day’s market. The afternoon session will be held as usual at the St. Joseph Country Club, starting at 2:00 p.m. David R. Miller, owner of Sun-Up Farms, Smithville, Mo., will speak on “Per formance from Rancher to Banker.” The second part of the program will be a panel discussion of present and future trends in livestock and grain marketing. The social hour will start at 4:30 p.m. and the day will be concluded with a steak dinner at 6:00 p.m. joins York State Bank Richard D. Helvey, a native of Lex ington, has been named assistant cashier in the instalment loan depart ment of York State Bank, according to Dean Sack, bank president. Mr. Helvey is a graduate of Kearney State College and spent two years in the Army as an accounting specialist. He also had more than three years of service with the U. S. Treasury Department in Grand Island as an assistant national bank examiner. Oakland Banker Honored For 5 0 Years of Service Fifty years ago A. A. A. Anderson applied for a job at the Farmers and Merchants National Bank, Oakland. Recently he was an honored guest at an open house at the same bank where he has been associated through the years, first as teller and working up to his current post as cashier. < . A < K ^ ; 63 FIRST NATIONAL LINCOLN Box 81008 • Lincoln, NE 68501 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn Banker, August 1974 64 RMA A n n ou n ces M ajor R eo rg a n iza tio n chaired by Dow Ostlund, executive vice president, Valley National Bank organization, which includes a new ad of Arizona, Phoenix. A main feature of RMA's reor ministrative structure. The plan was ganization is the institution of a for approved by the association’s board of directors at its May meeting. It is mal, divisional structure to serve indi designed to improve and expand viduals in the policy, line lending, and RMA’s services for the three specific credit department categories in its categories of individuals within its member banks. Each division will have membership: senior loan management, a governing council of eight appointed line lending officers, and credit de bank officers. Each will be supported partment and other staff support of by members of the national RMA headquarters staff in Philadelphia. ficers and personnel. The policy division will be responsi In announcing the new structure, RMA’s national president, Norman J. ble for developing programs and pro 'Collins, called it “perhaps the most jects of interest to those individuals significant change in RMA in its 60- who have a significant management re year history.” Mr. Collins, who is sponsibility for the commercial activi senior vice president, South Carolina ties of their banks. This will include National Bank, Columbia, said the re senior lending officers, heads of major organization is the result of recom lending divisions and loan committees, mendations of a Long Range Planning and on up to presidents and chairmen Task Force which had been studying — depending on the size and struc the operations of the association of ture of the association’s member bank commercial loan and credit of banks. The lending division will have two ficers since the fall of 1972. The Task Force was composed of top-level of equal sub-divisions: domestic and in ficers from RMA member banks and ternational. It will focus on services Morris Associates has ROBERT adopted a plan for immediate re Serving the Midwest... FIRST MID AMERICA INC. Municipal Bonds • Fiscal Agents Corporate Bonds • Listed and Unlisted Securities Government Agency Bonds • Investment Banking Municipal Bond Department 100 Continental Building 19th & Douglas Omaha, Nebraska 68102 T h o u g h tfu L ^ C ^ tìI " i f C f Mid America Member New York Stock Exchange, Inc. and other Principal Stock and Commodity Exchanges C O R P O R A TE AN D M U N IC IP A L BO ND S • G O V E R N M E N T A G EN C IES S T O C K S • C O M M O D IT IE S • O P T IO N S • IN V E S T M E N T B A N K IN G O m aha • Lincoln • C olum bus • Grand Island • Hastings • Atlantic C edar Rapids • Des Moines • Fort Dodge • Sioux City • Kansas City • C hicago Digitized N o r t hfor w e FRASER s te rn B anker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 for line lending officers, both general ists and specialists. It will also include lending personnel who have super visory responsibility for other loan of ficers. The formation of the interna tional sub-division represents an in creased interest of RMA in this area, in cooperation with Bankers Associa tion for Foreign Trade. RMA’s credit division will beam its activities at bankers working in staff * support areas, such as credit depart ment management, financial analysis, loan review, exchange of credit infor mation, and the training of personnel in these and related areas. In addition, there will be a chapters division in the association’s new table of organization. It will concentrate on assisting the leaders of RMA’s 28 chapters across the United States to strengthen and increase the effective- „ ness of their local units. Clarence R. Reed remains the chief * staff officer but has been promoted to executive vice president. With RMA since 1958, he had been its executive manager. Indiana Branching Hearing Will Test State Law A hearing has been scheduled for August 5 in Indianapolis on the eightmonth old application of Indiana Na tional Bank, the state’s second largest bank, to branch across county lines. A second application also will be in cluded. It was filed later by Citizens ► National Bank of Columbia City. The entire case has national im portance since it challenges state bank ing statutes that restrict national as well as state banks from branching across county lines. The suit was filed following enact ment by the Indiana legislature in 1972 of a law enabling state chartered S&Ls to branch 100 miles in any di rection from their principal office. The Independent Bankers Associa tion of Indiana last month filed suit ^ in Allen County Superior Court against the Peoples Trust Bank of Fort Wayne, asking the court to order Peo ples Trust to close a loan production office it opened recently in Kokomo, 90 miles from Fort Wayne in a sepa rate county. James E. Faris, Indiana director of financial institutions, said Indiana law is silent on loan production offices and he has found no violation of the law. He stated if one is found by the court, he will order the office closed. 65 First o f Chicago Issues N etv R eport r P lHE first edition of a new publica* tion issued last month by The First National Bank of Chicago fore casts a 4% annual growth rate in the GNP by year-end, a decline in the prime rate to perhaps 8% by Decem ber, and a moderating rate of inflation next year. Titled First Chicago Report, the publication says the sharp first-quar ter drop in GNP was magnified by “considerable commodity speculation, stockpiling, and delayed production in anticipation of de-control.” However, output presently remains at a level “compatible with stable long-term growth,” the report observes. Many aggravating conditions had been corrected by the close of the sec ond quarter, setting the stage for re sumed growth in production, the report states. Marked increases in oil sup plies, the end of most price controls plus overall demand should bring on “positive, but below-normal” growth in the third quarter and a 4% annual growth rate by year-end, the report estimates. “This moderate expansion will continue through most of 1975,” it adds. Turning to prices, the report says, the underlying cause of inflation has been the generously expansive fiscal and monetary policies of the govern ments in many industrial nations in re cent years. But other events which are not likely to reoccur have raised the inflation rates above anticipated levels, and “therein lies the rationale” to ex pect some easing of inflation next year, the report states. It cites the devalua tion of the dollar, shortfalls in harvests in major agricultural areas of the world, and the oil embargo and subse quent increased prices. As to interest rates, the report says the Federal Reserve clearly has made a commitment in the fight against infla tion which is “wholly appropriate and should be applauded.” In recent weeks the growth in monetary aggregates has returned to rates more consistent with substantially lower inflation, the report observes, and a “steady-as-you-go” policy now seems probable, indicating a decline in short term rates. “While the extent and duration of the decline cannot be forecast precisely, the prime or corporate base rate could be as low as 8% by December, 1974.” (The report is issued monthly and can be obtained free by writing to The First National Bank of Chicago, Busi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ness and Economic Research Division, One First National Plaza, Chicago, 111. 60670.) RMA I« Accepting Loan Seminar Registrations Robert Morris Associates — the na tional association of bank loan and credit officers — has announced that registration will be open now through October 11 for its 1975 Loan Manage ment Seminar January 19-24 at Indi ana University in Bloomington, Ind. The seminar, held annually in co operation with the university’s grad uate school of business, is open to sen ior lending personnel of RMA mem ber banks. Registration is limited at each session. Irving Trust Seeks Edge Act Office in Los Angeles Irving Trust Company, New York, has filed with the Federal Reserve Board for permission to establish an Edge Act international banking office in Los Angeles, Calif. DO YOU WANT TO: DIVERSIFY YOUR INSTALLMENT LO AN DEPARTMENT? INCREASE PROFITS? BUILD VOLUME? Then fin d o u t w hat our 1 0 0 % I N S U R E D P R O P E R T Y I M P R O V E M E N T L O A N P R O G R A M can do fo r Y O U R Bank. FOR IN F O R M A T IO N W R ITE OR C A L L : R. D. " D ic k " Beatty THE CENTRAL NATIONAL INSURANCE COMPANY OF OMAHA 105 South 1 7th Street Omaha, Nebraska Telephone: 68102 (402) 344-7600 We can h e lp y o u . GOVERNMENT AGENCY SECURITIES Ask us about tax savings .. . marketability . . . better yields I n v e s t m e n t s , FARM C R E D IT B U IL D IN G - O M AH A Inc. 402/345-2241 N o rth w e ste rn Banker, A u g ust 1974 66 THE GOOD RICH EARTH MAY NEED A LOAN your agricultural participation needs. And there's no d oubt that the dem and for agri-business loans will continue to grow in the weeks and m onths ahead. When the good rich earth could use a little green stuff from you, call on us. From tim e to tim e even the richest uncle needs a loan to see him through. So it’s not surprising that the rich earth may need an occasional financial assist as well. That’s where Bankers Trust com es in. W e’re always glad to talk about BANKERS TRUST Des Moines' largest independent bank Use our toll free WATS line number: 800-362-1688 John Ruan, Chairm an of the Executive C om m ittee N o r tfor h w FRASER e s te rn Banker, August Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 Robert J. Sterling, Chairm an of the Board Thom as L. W right, President 67 president of Northwest Bank and Trust Company of Davenport. From 1929 to 1941 he was with the American Trust and Savings Bank of Davenport. Iowa NEWS R* E. TOOL President Manchester NEIL MILNER Exec. V.P. Des Moines Iowa NABW To Meet IBA H olds In sta lm e n t P rogram Sept. 18-19 r J^ HE Iowa Uniform Consumer Credit Code, electronic funds transfer systems and other federal legis lation will all be discussed at the In stalment Lending Conference to be held Wednesday and Thursday, Sep tember 18-19 at the Hotel Fort Des Moines. John Fisher, vice president, City National Bank & Trust Co., will be the keynote speaker. Others speaking in clude Ray Monsalvatge, Cavett Robert and Jay Beecroft, all motivational speakers. A workshop will be held on the Iowa Uniform Consumer Credit Code. Persons on the panel include a legisla tor involved in the debating and ulti mate passage of the code; attorneys who have been saddled with the task of interpreting this code, and a banker, along with Neil Milner, IBA executive manager, who is the moderator. The ladies program includes a breakfast and style show by Cownie’s beginning Thursday at 9 a.m. J. R. Herbrechtsmeyer, vice presi dent, First Security Bank & Trust Co., Charles City, is chairman of the Iowa Bankers Association’s retail banking committee which is sponsoring the event. Other committee members include Ed Doyle, committee vice chairman and vice president, Merchants Nation al Bank, Cedar Rapids; Frank Moran, vice president, State Bank & Trust Co., Council Bluffs; Reid Erickson, vice president, Jackson State Bank & Trust Co., Maquoketa; Leonard Davidson, vice president, Union Bank & Trust Co., Ottumwa; and John Waters, man ager, instalment loan department, Cen tral National Bank & Trust Co., Des Moines. Name Directors at Ida Grove Bank Ida County State Bank, Ida Grove, has announced the appointment of two new members of the board of directors. They are Curtis Rupert, farmer from https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Holstein, and Duane Buehler, farmer from Odebolt. Promoted at Newton Bank Larry M. Hutchinson has been named cashier of the Jasper County Savings B ank, Newton, accord ing to Donald R. Runger, bank p re sid e n t. Mr. Hutchinson fills the position held by J. L. Menges who was recently named president of American State L. M. HUTCHINSON Bank, M ason City. He started at the Newton bank as a teller in 1962 and was named manager of the shopping center office in 1965. He became active in bank operations and accounting in 1966 being named assistant cashier at that time, and was promoted to assistant vice president in January, 1973. Honor Crystal Lake Banker Manufacturers Bank and Trust Co., Forest City, recently honored Curtis Jumpp, Jr., executive vice president and director and manager of the bank’s Crystal Lake office. The occasion marked his twenty-fifth year in bank ing in Crystal Lake. Mr. Jumpp, 56, joined the bank in 1949. “Education, The Key to Success” is the theme of this year’s annual meet ing of the Iowa Group of the National Association of Bank Women. The group will meet at the Howard John son Motel in Sioux City August 22 and 23. Registration will begin at 9 am . un til noon on August 22. The first ses sion will be a luncheon at the Howard Johnson Motor Inn. Edith Slife, vice president, cashier and director of the Farmers State Bank at Hawarden, is the group’s chairman. Ottumwa Bank Elects Officer, 2 Directors The board of directors of the First National Bank of Ottumwa has elected a new vice president and two new directors. J. Gary Ohm was promoted from assistant vice president to vice presi dent. He is manager of the instalment loan department and will be assuming some additional duties in the commer cial loan area. Mr, Ohm joined the bank in 1966 after working with the Farmers Savings Bank of Struble. He was named assistant cashier in 1967 and assistant vice president and department manager in 1970. J. Richard Grear, vice president and cashier, and John A. Travios, vice president and general manager of Winger Boss Co., were elected di rectors. Mr. Grear joined the bank in 1963. He was promoted to his present position in January of 1972. Mr. Travios joined his company in 1960. Thurman Banker Retires W. J. Grotenhuis, president of the Thurman State Bank, has announced B. F. McGee, president of the the retirement of Delores Case as Dyersville National Bank, has retired. cashier of the bank and resident agent John E. Keane, executive vice presi of the C. C. Case Insurance Agency. dent, has become the active chief exec Mrs. Case has purchased a home in utive officer of the bank. Mr McGee Florida and will be moving there will continue as president of Dyersville September 1. National Investment Company, which Also announced was the addition of owns a substantial majority of stock Danny Gold of Omaha to the bank’s in the bank. staff. Mr. Gold is a graduate of Green Mr. McGee joined the bank as pres ville College, Greenville, 111. He has ident in May, 1964. Prior to coming been in the accounting department of to Dyersville, he was executive vice Seldin Co. of Omaha. Dyersville Banker Retires Northw estern B an ke r, August 1974 68 Iowa News Iowa D ep a rtm en t o f H anking a n d CSHS W ill Co-Sponsor C om pu ter A u d it C onference HE Iowa department of banking T and the Conference of State Bank Supervisors will co-sponsor a Com puter Audit and Control Conference for bankers the week of September 9-13. The daily sessions will be held in the Ramada Inn-Downtown, 929 Third Street, Des Moines. The conference is a comprehensive, technical program designed to teach the internal auditor about electronic data processing auditing. It will be presented by the EDP staff of Peat, Marwick, Mitchell & Co., certified public accounting firm, who have pre sented it more than 45 times since June, 1972. It is designed to benefit internal auditors, EDP auditors and officers of banks, as well as other staff members, directors and outside firms of banks. The sessions will run from 9:00 a.m. through 5:00 p.m. Monday through Thursday and conclude with luncheon on Friday, September 13. The general subject matter for daily studies includes the background of EDP and EDP auditing, evaluating in ternal controls in EDP, understanding EDP applications and learning new evaluation techniques, importance of audit involvement in EDP planning and design, and a final summary. Cost of the course is $450 per per son. The check and registration may be sent to the department of banking at 607 Locust Street, Des Moines, and motel reservations may be made di rectly with Ramada Inn-Downtown at the above address, stating it is for the CSBS Conference. Robert L. Koppenhaver Funeral services were held recently for Robert Leonard Koppenhaver, 58, cashier of the Union Trust and Savings Bank in Stanwood. He also was vice president of the Cedar County Bankers Association. Cedar Rapids Bank Expands Board Peoples Bank and Trust Co., Cedar Rapids, has expanded the number of members on its board of directors from 16 to 18. Elected to the new seats are Donald C. Dunlap, president of Martin Marietta Central division, and Darrell M. Schumacher, president of Rinderknecht Associates, Inc. Market Phone Service By Jefferson Bank Local farm market news is now being taped and made available on the telephone by the agriculture depart ment of the Home State Bank, Jef Specialization Takes The Guesswork Out Of Building Or Remodeling P r o j e c t s ....... ferson. The bank calls its new service its Market Line. It is obtained by dialing 6-2212. Farmers Co-op market prices on grain are given and updated through- A out the day. Also heard are weather reports and grain and livestock mar ket information. The bank also picks up from its farm wire service stories concerning factors influencing farm economics. . Opening markets are taped in the morning as they are received. There also is closing information. Promoted at Jefferson State Dean Hicks has been promoted to assistant cashier at the Jefferson State Bank. Mr. Hicks joined the bank’s staff on January 21, 1974, as a loan officer trainee. He was born on a farm near Somers and attended the Iowa State University, Ames. He has 14 years of ~ experience in agri-business. First Nat’ l, Sioux City, Elects Yanney Director James M. Yanney has been elected to the board of directors of the First ^ National Bank in Sioux City, according to Joe T. Grant, chairman. Mr. Yanney is president of Guarantee Roofing and Siding Co., and co owner of the Badgerow Building. Hugh R. Jackson Funeral services were held recently ^ for Hugh R. Jackson, 84, retired banker. Mr. Jackson was associated with the Hartford-Carlisle Savings Bank and also served 39 years with the state banking department as a bank ^ examiner and deputy superintendent. Name Directors at Vinton More Financial Institutions In Iowa Use The Specialized Services Of The KIRK GROSS COMPANY Than Any Other Planning Service Ivan J. Davis, Jr., and Jack W. McDowell have been named to the board of directors of the Benton v County Bank and Trust Company, Vinton. Mr. Davis is president of Davis Implement Co. and Mr. Mc Dowell is president of McDowell Lumber Co. >jq ACO T “ *“ 110 EAST 7TH ST. * WATERLOO, IOWA 50705 PHONE (319) 234-ÓÓ41 N o r tfor h w FRASER e s t e r n B an ke r, August Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 S a le R e g is te rs "Accepted Si ule Registers by Bank Clerlj s E veryw here" /'o r iji/o r m a t i o n w r i t e THE A C O ]RN PR IN T IN G C O . O a k la n d , Io w a 69 Bat&e* ff «w . f » ^*10,000tl»s w ® ® ™ te tot <10,00® M »II;.K M > lili; “ Thank You"Bank Club ¿otiig |)I<H ^! It offers you the profitable way to interest-free dollars. pillH MONTH LL FOR O N L J L ^ - & « **& # • We are offering a professionally engineered, continuous advertising package called the “Thank You” Bank Club. It is directed toward rapidly increasing-and holding-a large number of demand deposit accounts at minimal investment cost to your bank. Briefly the “Thank You” Bank Club promotes checking account features, identification cards, insurance and group travel (lovely Hawaii, Texas cattle country, the Grand Ole Opry and many others). For these services your customers pay a surprisingly low monthly rate. Our organization provides you with all the necessary advertise ments and broadcast copy, handles all travel organization and followthrough and supervises insurance issuance. However, this is not a one time promotion as are so many other promotional programs. We will regularly supply you with a selection of advertising material to keep your “Thank You” Bank Club program fresh and active. 'V ^ To subscribe to the “Thank You” Bank Club program or for more information WRITE, WIRE or CALL : Bill Moler, President /First Financial Marketing Group, Inc. P. O. Box 934 • Maquoketa, Iowa 52060 (319) 652-5212 © First Financial Marketing Group, Inc., 1974 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s te rn Banker, A u gust 1974 70 Iowa News G ra d u a tin g Class o f 1974 Iowa School of H anking SHOWN is the 1974 graduating class ot the Iowa School of Banking held June 16-21 on the campus of the University of Iowa, Iowa City. Left to right are— 1st row: James Schulze, John Huntington, John Hansen, David Ryan, Larry Jensen, Jerome Rolfes, Richard Lear, Darlys Hulme, Frances Kirkpatrick, John Ryan, Michael Thornbrugh; 2nd Row: Gary Scott, Robert Linderbaum, Michael Dunn, Justin Collier, Lawson Waterman, Gary Hughes, Richard Drake, Harold Van Wettering, Charles Schrup III, Robert: Schoening; 3rd Row: Fred Bankus, Orlan Ervin, Roger Doughan, Paul Buenneke, Robert Scheitler, Robert Swedlund, Richard Mikelson, Rick Ridnour; 4th Row: William Jones, K. F. Leuthauser, Raymond Chipman, Roger Rockafellow, William Dodgen, David Coppock, Donald Henken¡us, Dennis Skinner; 5th Row: John Carstens, Willard Lauth, Larry Johnson, Ray Schreur, John Zdychnec, Charles Walsh, Alan Ha ney, Ronald Matthews, Terry Moore; 6th Row: Richard Hansen, Terry Martin, Clifford Mortenson, Michael Deege, Michael Fuson, Frank Strain. James Wilbert McKee Name James Coquillette Funeral services were held recently for James Wilbert (Bert) McKee, former vice president of the Farmers & Merchants State Bank, Winterset, Mr. McKee served 64 years as an Iowa banker. Fie retired at the age of 88 on December 1, 1970. He was 91 at the time of his death. James E. Coquillette, president of The Merchants National Bank, Cedar Rapids, has been asked to join the banking, monetary and fiscal affairs committee of the Chamber of Com merce of the United States. Mason City Bank Elects Assistant Vice President IN TER EST R ATES . . . The First National Bank of Mason City has announced the election of A. R. (A 1) Gemaehlich to assistant vice president. Mr. Gemaehlich joined the bank in August of 1969. He was elected as sistant cashier in 1971. (Continued from page 25) but nonetheless some correlation per sisted. Thus, our base rate formula has acted as an educational device. It has helped get across the point that bank rates are money market rates, United States Check Book Company We are the professionals in the bank supply business. Our aim is to provide you with the latest available in bank stationery and printed form s. The fa m ilia r face belongs to Bernie Burger, one of our professionals who lives in Omaha, Nebr. Call Bernie or your U. S. professional fo r your bank supplies. P.O. Box 3644 Digitized N o r tfor h w FRASER e s te rn Banker, A vgust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 Omaha, Nebraska 68108 (402) 345-3162 something that badly needed to be put into proper perspective. So, in a very real sense, we lost a few battles, but we won the war. We ourselves have also learned a few things. We now use a three-week moving average to determine our rate. I think that’s a good idea. We’ve been moving by one-quarter point steps, which also has some virtues. We may develop other refinements, too, as time goes on. What’s the outlook for interest rates in the rest of 1974? Palmer: It’s always very tricky to predict interest rates. There are simply too many imponderables, too many surprises that can occur and change the trajectory of events, as we saw the first week in May. If you pressed me, I’d have to say I expect short-term interest rates to decline somewhat during the latter part of the year, but longer-term rates will probably rise somewhat. And if you quote me remember that I said such predic tions are tricky. Reprinted from a recent issue of Citicorp magazine. Q Humboldt Bankers Appointed Orren S. Olson, director of The First National Bank, Humboldt, has been appointed by Iowa Governor Robert Ray to the new Energy Policy Council established by the 1974 legislature. C. H. Lewellyn, president of the bank, has been appointed a trustee at Friend ship Haven in Fort Dodge. 71 These Iowa Bankers work with LaSalle in Chicago to build business for Iowa banks ■ Why do L aS alle’s c o rresp o n d en t balances con tinue to climb? Two big reasons are Cy K irk and M ax Roy, two Iowa bankers who work with LaSalle correspondent banks in Iowa. These life-long Hawkeyes know Iowa and Iowa credits. They keep our business growing by helping busi ness grow in the correspondent banks they serve. If you would like to find out w hat Cy Kirk or Max https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Roy can do for your bank and for Iowa, call them in Chicago at (312) 443-2774. Or call at hom e; Cy Kirk at (815) 398-9521 ; Max Roy at (319) 338-5224. © LaSalle Jk J /A FULLA SERVICE \BANKy ...th e bank on the move LaSalle National Bank, LaSalle Bank Building 135 S. LaSalle Street, Chicago, Illinois 60690 • Phone (312) 443-2774 N o rth w e ste rn Banker, A ugust 1974 72 Moines National B a n k , has an nounced the pro- A motions of Will iam F. Landholt A to vice president. i real estate lendi n g; Donald J, Brush to c o m- _ mercial loan ofw. f. l a n d h o l t ficer, a n d t h e election of Gary L. Armstrong to auditor. r \ avid L, Miller, president of West Des Moines State Bank, has announced the elec tion of O. Lee Minear, vice pres ident, to director of the board. Mr. M i n e a r joined the bank in July of 1973 as vice president. P rev io u sly he served as presi O. L. A/UN-AR dent of the Mo hawk Valley State Bank of Utica, N. Y. Before that he was associated with City National Bank of Cedar Rapids and Capital City State Bank of Des Moines. * * * William H. Brenton, president of National Bank of Des Moines and chairman of Brenton Banks, Inc., has named two new directors to the board of National Bank of Des Moines. Appointed are R. C. Yapp, regional manager for Pesticides Chevron Chem ical Co., Ortho division, and R. W. Horner, bank senior vice president. Mr. Horner has been with the bank since 1969 and is responsible for commercial lending operations. Mr. Brenton also announced three other appointments. Max Larson has been named senior vice president with major responsibilities in marketing and advertising. He joined the bank in 1971. Gary A. Larson has been promoted to vice president in the commercial loan department. He joined the bank in 1969 as instalment loan officer. Dean Prantner has joined the bank as assistant vice president in charge of the instalment loan department. Mr. Prantner was formerly with the Bank of Silvis in Silvis, 111. * * * John R. Fitzgibbon, chairman and chief executive officer of the lowa-Des FIRST N A T IO N A L B A N K BURLINGTON, IOWA Statement of Condition June 2 8 , 1974 LIABILITIES ASSETS Cash and Due from Banks . .$ 6,025,296.61 U.S. Government Securities . . 3,699,349.25 State, County and Municipal Bonds ...................................... 5,636,756.98 Other Bonds ............................. 2,071,760.33 Loans and Discounts............. 26,175,735.82 Federal Funds Sold .................. 2,400,000.00 Stock in Federal Reserve Bank 60,000.00 Bank Premises. Furniture and Fixtures ......................... 1,863,899.55 Other Assets ............... ............ 453,227.81 $48,386,026.35 Capital Stock ............................$ 600,000.00 1,400,000.00 Surplus ........................................ Undivided Profits .................... 2,002,491.48 Loan Reserves ............................ 412,137.62 Reserves for T a x e s .................. 187,000.00 Reserves for Contingencies . . 500,000.00 Unearned Discount .................. 638,715.42 Federal Funds Purchased . . . 750,000.00 Other Liabilities ....................... 746,649.52 Deposits ..................................... 41,149,032.31 $48,386,026.35 OFFICERS V. P . C ullen, C h a irm a n of th e B o ard D a le K elley, P re sid e n t Jo h n P . O’N eill, E xecutive V ice P re sid e n t a n d T ru st Officer F ra n c is W . K am m an , V ice P re sid e n t W. C. Steele, V ice P re sid e n t R. K . P e a rso n , V ice P re sid e n t E. L. H a u sk n e c h t, V ice P re sid e n t a n d C ashier F ra n ce s F ly n n , V ice P re sid e n t P a u l A. A bel, V ice P res, a n d F a rm R epresentative E. E . W ischm eier, V ice P re sid e n t W a lte r F u n c k , V ice P re sid e n t N o r for t h wFRASER e ste rn B anker, August Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ¡974 B ill R. H um m el, A ssista n t C ashier F a y e F isch e r, A ssista n t C ashier Alvin J. S tre a n , A ssista n t C ashier A lb ert J . H ass, M ark etin g Officer R o b ert C. M atsch, Vice P re sid e n t a n d T ru st Officer D ennis D aedlow , T ru st Officer T. D. L effler, A ssista n t V ice P re sid e n t R. D. W rig h t, A ssista n t C ashier V irg in ia M . Rice, A ssista n t C ashier D o n ald K e lla r. A u d ito r D. J. BRUSH G. L. ARMSTRONG Mr. Landholt joined the bank’s in stalment loan department in March of 1962. He has served in the real estate loan department since 1963 as assist ant cashier, assistant vice president, T and real estate loan officer. Mr. Land holt is president-elect of the Iowa Mortgage Bankers Association. Mr. Brush has served as auditor since joining the bank in 1967 from Peat, Marwick, Mitchell and Com pany. Mr. Armstrong assumed respon- ’ sibility in the audit department upon y joining the staff in October of 1973. * * * i Frank R. Warden, 79, retired vice president and director of the Central National B a n k and Trust Com pany, died July 14 of cancer in a Des Moines hos pital. A native of R e d d i n g , Mr. Warden moved to Des Moines in 1915 to join CenF R tral National as a transit clerk. He was called to service in World War I and after 19 months , with the 89th Aero Squadron, A.E.F., he returned to the bank. In 1922 Mr. Warden was transferred to the invest ment department, which he later headed as vice president until his re tirement in June, 1961. Mr. Warden was elected a director of Central National Bank in 1945 and w a r d e n 73 Help is as close as your phone. Call us on our toll free wats number 8 0 0 - 362-1615 E D D IE A. W O L F W IL L IA M B. G R E A V E S R U S S E L L G. PLA G E R GER A LD B. M U R P H Y G R E G O R Y S. W O LFE Correspondent Bank Department c 99 Central National Bank 8 -Trust Company DES M O IN E S (515) 243-8181 M EM BER FDIC L O C U S T AT S IX T H /F IF T H & G R A N D / 35TH & IN G E R S O L L / W E S T DES M O IN E S A F F I L I A T E D W I T H C E N T R A L N A T I O N A L B A N C S H A R E S , I N C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn B anker, August 1974 74 Iowa News When the two things you need most are service and dependability, continued on the board until 1969. He served as a director of National Travelers Life Insurance Company for many years, was a past president of the Iowa Investment Bankers Association, and was a board member for three 1 terms and a member of the advisory council of the Financial Public Rela tions Association (now Bank Market- < ing Association). Mr. Warden was a 50-year member ^ of the Des Moines Consistory and Capitol Masonic Lodge and was trea surer emeritus of Za-Ga-Zig Shrine Temple. * * * H. S. Kuyper, vice president, Rolscreen Company, Pella, has been elected a director of the Central National Bank & Trust Company, according to B. C. Grangaard, chair man and chief executive officer. Other staff changes announc H. S. KUYPER ed include: Nor man D. Wilson, promoted to corporate trust officer, Richard R. Biisland, promoted to trust operations officer; Ronald G. Gipple, elected instalment loan officer, and Michael E. Fuson and Jon A. Gookin, elected assistant operations officers. Mr. Kuyper is a director of Pella B. V., Panningen, Holland, in addition to his official responsibilities with Rolscreen Company. Appointed a! Dubuque remember us. Our Banks and Bankers Division provides a full range of services to more than 100 correspondent banks in Iowa, Nebraska. South Dakota and Minnesota We offer them service and d e p e n d a b ility they can count on. For sound financial a d v ic e and service when you need it, c a ll on Security National Bank. «■ -..- -.... “T “ k mm ' Security National Bank 6fh & Pierce, Sioux City, Iowa, 712/277-6517 Digitized N o r t hfor w e FRASER s t e r n B a n k e r , A u g u s t 1974 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis William G. Kruse, president of the First National Bank of Dubuque, has announced the appointment of Gary 1 E. Giesler, instalment loan officer and Gregg W. Liddle, teller operations officer. Mr. Giesler, originally from Savan na, 111., joined the bank in 1972 after v graduating Cum Laude with a BA degree from the University of Du buque. Mr. Liddle joined the bank in 1970. He is a graduate of Miles, la., High School and attended Clinton Community College. 75 THIS IDEA DESERVED FINANCING. This was Drovers Country years ago. You were there if you raised cattle in southern Texas or financed their m ovem ent up the legendary Chisholm Trail to this railhead at Abilene, Kansas. The trail ended here because a businessm an, foseph McCoy, had an idea: To build a term inal where the cattle could transfer from trail to rail. Three million cattle did so. They rode to Chicago, w here a new institution, The Drovers National Bank, enabled cattlem en to credit their livestock receipts to their accounts at the banks back home. The Drovers Bank today is a leader in agricultural, commercial and correspondent banking. Many an idea planted at The Drovers has grown to m aturity and fruition. Today the frontier is still open to people w ith grow th ideas. These ideas deserve financing. We would like to hear about yours. "'Drovers N a t i o n a l B a n k o f C h ic a g o 47th and Ashland Avenue. Chicago, Illinois 60609 3 1 2 /9 2 7 -7 0 0 0 Member Federal Deposit Insurance Corp. • Member Federal Reserve System Member Chicago Clearing House Association https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn B anker, August 1974 76 Iowa News B ankers A tte n d A m a n a V.LP . to feed manufacturers and dealers who sell these products under the Kemin label or private labels. Kemin Indus tries opened a plant in Belgium in 1973. Mr. Nelson also is a director of the South Des Moines National Bank in Des Moines. Conferences Explain Code Iowa bankers have had several op portunities to attend discussions center ing on the New Iowa Consumer Credit Code (S.F. 1405) which became effee- AMANA V.I.P. TOURNEY drew over 17,000 spectators. Included in the group was a large delegation of visiting bankers hosted by The Merchants Natl. Bk., Cedar Rapids. Shown here checking scores are Joe Phernetton, pres., Banks of Iowa Computer Serv ices, and Lome Newhouse, exec, v.p., First Tr. & Sav. Bk., Davenport. Following the golf tourney, the host bank entertained correspondents at the High lander Inn. George Foerstner, pres., Amana Refrigeration, Inc., is a director of The Merchants National Bank and of Banks of Iowa, Inc. Iowa P la q u e Honors R o tterd a m F irm R. W. Nelson (left), Des Moines businessman, presents recognition plaque to Aat Braakenburg and Bert de Wit, of Rotterdam, the Netherlands. R. W. (Bud) Nelson, president of Kemin Industries, Des Moines, pre sented a plaque on behalf of the Honorable Robert D. Ray, governor of Iowa, to J. Willebeek Le Mair & Co. B.V. in recognition of work the firm has done for Iowa farmers. The presentation was part of the 125th an niversary celebration of the firm head quartered in Rotterdam, The Nether lands. J. Willebeek Le Mair & Co. B.V., founded in 1849, is operating as European representative of leading agricultural commodity exporters in the U.S., Canada, Brazil and Argen tina. Further, it conducts a lively Digitized N o r t hfor w eFRASER s te rn Banker, August https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 business in European grains and feed stuffs between the various European Common Market countries. Through an affiliated company, a large ocean freight business is handled. Another company in the group sells agricultural chemicals. The general managers of the com pany, Aat Braakenburg and Bert de Wit, were also named honorary citi zens of Iowa. Mr. Nelson’s firm manufactures chemical products for the agricultural trade. These include feed preserva tives, flavors, mold-inhibitors and anti oxydants. Kemin products are sold domestically and throughout Europe PARTICIPANTS in Central Natl. B&T con ference were (I. to ir.): John Waters, mgr., Inst, loan div.; Eddie Wolfe, v.p. & head of corr. bk. divi., and David Brodsky, Des Moines attorney. tive July 1, 1974. Conferences were conducted by the Iowa Bankers Asso ciation as well as the National Bank of Waterloo and Central National Bank and Trust Company of Des Moines. The new Code basically removes in stallment loans from the 9% Iowa usury rate law and places them under the new legislation which authorizes higher maximum rates for both closed end and open end loans. On open-end loans a lender now may charge an annual percentage rate of 18% or IV2 % per month on the bal ance up to $500.00 and 15% or 114 % on the balance over $500.00. Openend accounts include department store charge accounts, over-draft checking and bank credit cards. Closed-end loans now may carry a rate of 15% annual rate up to the maximum size of loan— $35,000. The exception to this is licensed or titled vehicles, such as autos, motor homes and similar vehicles. Rates for these loans are pegged at a maximum of 1V a % /month for Class One; 1.75% / month for Class Two, and 2 1 4% / month for Class Three. WANTED Trust officer to manage growing de partment in lov/a. Send resume with salary requirements to Box WLF, c/o NORTHWESTERN BANKER, 306 15th St., D es Moines, Iowa 50309. All replies strictly confidential. Iowa News ABA TA Spot Gets Award The first television commercial pro duced by the American Bankers Asso ciation (ABA) has received a “Cer tificate of Excellence In Advertising” from the Advertising Club of Metro politan Washington, it was announced by Willis W. Alexander, ABA execu tive vice president. The 60-second television promotion, featuring astronaut Scott Carpenter, was filmed in Boulder, Colo., a small town where local bankers put their ef forts toward improving the town and changing things for the better. The ABA commercial was one of 600 advertisements entered in the competition for the 1974 Addy Award, given annually by the Washington Ad vertising Club. It was the first TV ef fort prepared by the Leo Burnett Co. of Chicago for the ABA. There are currently three TV pro motions being presented by the ABA. Each is one minute in length. Golfer Byron Nelson is featured in the second promotion. The ABA’s most recent advertising effort features astronaut Neil Armstrong at the new town of Columbia, Md. Each commercial is geared to show how bankers are helping to improve their communities and “Helping you change things for the better,” the na tional slogan for America’s bankers. Maine-Anjou Heifer Sells for Record Price of $ 1 0 0 ,0 0 0 Two possible world records were es tablished June 22 as an overflow crowd of more than 500 persons looked on at the American Heritage Maine-Anjou Invitational hosted by Stonyridge Farms in New Carlisle. Ohio. The enthusiastic crowd, which saw 68 lots of fullblood and percent age Maine-Anjou cattle sell for $456,100 to average $6,802, included inter national guests present for the kick off of the World Maine-Anjou Conference in Kansas City, Mo. Cross Lanes Georgia, the first fullblood Maine Anjou female to sell at public auction in the United States drew a $100,000 bid from Cattle Genetics Enterprises, Brookline, Mo., quite possibly a record price for an open fullblood import, sired by Dindinno out of Duvacee, was consigned by Roger Chapman, Cross Lanes Herd, Mapledurham, Reading, England. Cattle Genetics also made the top https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 77 bid of $50,000 for a five per cent in terest in GERVAISE, an outstanding yearling fullblood Maine-Anjou bull. Based on this five per cent price, 100 per cent ownership of GERVAISE would be valued at a million dollars. GERVAISE celebrated his first birth day with the record price on sale day. tions with the other federal regulatory agencies. The FHLBB also approved the is suance by S&Ls of negotiable CDs of $100,000 or more. Previously, S&L is sued CD’s were non-negotiable and early withdrawals drew stiff penalties. Comptroller Announces Changes Chicago Agency Is Sold Comptroller of the Currency James E. Smith has announced several top level changes in field appointments and in the Washington, D.C., headquarters. H. Joe Selby, who has been regional administrator of national banks in Portland, Ore., since 1970. has been transferred to San Francisco in a simi lar capacity. At Portland he was re sponsible for an area including Alaska, Idaho, Montana, Oregon and Wash ington. In his new post his area will in clude California, Nevada, Hawaii and Guam. He succeeds Arnold E. Larsen, who retires after 30 years of service with the Comptroller’s office. Succeeding Mr. Selby in Portland is M. B. Adams, who has been deputy regional administrator in Atlanta since 1967. Joseph M. Ream, regional adminis trator in Atlanta since 1966, is being moved to Washington as a special as sistant to the Comptroller. His initial duties will be to advise the accounting firm of Haskins & Sells in its study of the functions and operations of the Comptroller’s office. Billy C. Wood, deputy regional ad ministrator in Dallas since 1969, has been appointed to succeed Mr. Ream as administrator in Atlanta. Home Loan Bank Board Extends EFTS Authority The Federal Home Loan Bank Board has extended until July 31, 1975, the authority for federal savings and loan associations to experiment with pilot projects associated with elec tronic transfer of funds, using remote service units. The units may include “on-line” manned computer terminals and “off line’’ cash disbursing and receiving ma chines, currently customer-activated by an issued plastic card. The three basic services authorized by the FHLBB are deposits, withdrawals and loan pay ments. The American Bankers Association labeled the FHLBB action as an “in excusable” failure to coordinate its ac Mandabach & Simms, Inc., 20 North Wacker, Chicago, has acquired a majority interest in Dempesy & Fred ericks, Inc., located at the same Chi cago address, it was announced recent ly by Paul J. Mandabach, Jr., presi dent of the purchasing firm. “Dempesy & Fredericks, Inc., will be operated as a wholly-owned subsidi ary,” Mr. Mandabach stated. “I will become president of the subsidiary, and two vice presidents of the subsidi ary—Jane Storey and Edward L. Hammerman— have taken equity posi tions in the firm, and will serve as di rectors. George H. Dempesy will re main as executive vice president, and the former president and majority stockholder, C. Thomas Fredericks, is being retained as a consultant.” Currently, Dempesy & Fredericks, Inc., specializes in banks, savings and loans, and related financial accounts, while Mandabach & Simms, Inc., serves numerous clients in the food product and service, graphic arts, travel, and scientific instrument industries. Combined billings of the two agen cies will approximate $7 million. BankAmericard Goes to Russia Bank of America reports that its BankAmericard will become the first bank credit card accepted in the Soviet Union. The bank said that it has completed an agreement with Intourist, the offi cial government travel agency, which will permit BankAmericard usage in Moscow, Leningard and 31 other Soviet cities. The agreement allows the use of BankAmericard at hotels, restaurants, car rental agencies and other outlets and for the purchase of airline, rail road, boat and theatre tickets. The bank said Soviet outlets are ex pected to begin honoring its Bank Americard by late summer. With the addition of the Soviet Un ion to its coverage, BankAmericard is now accepted in 109 international areas and throughout the United States. N o rth w e ste rn Banker, A ugust 1974 78 Victory Dinner Reported conversation at a meeting of meat boycotters: “Say, I heard that Mrs. Jones is ask ing for money for donations when she goes around to sign up new members. Isn’t that against the rules? I mean, 1 thought we were just supposed to get people to stop buying meat. I didn’t know we were trying to raise money.” “No, we’re not trying to raise money. It’s just that she wants to pick up enough to pay for a steak victory dinner after it’s over.” Don’ t Call Us— Ever! The following comedy of classified errors kept readers of a California pa per smirking for a whole week: Monday’s advertisement read: “Rev. A. J. Jones has one color TV for sale. Phone 629-1313 after 7 p.m. and ask for Mrs. Donnelly who lives with him cheap.” Tuesday: “We regret having erred in Father Jones’ classified ad yester day. It should have read: “Rev. A. J. Jones has one color TV for sale. Cheap. Phone 629-1313 and ask for Mrs. Donnelly who lives with him after 7 p.m.” Wednesday: “Father Jones informs us he has received several annoying telephone calls because of an incor rect classified ad in yesterday’s paper. It should have read: “Rev. A. J. Jones has one color TV for sale. Cheap. Phone 629-1313 after 7 p.m. and ask for Mrs. Donnelly who lives with him.” Thursday: “Notice, I Rev. A. J. Jones have no color TV for sale. I smashed it. Don’t call 629-1313. The phone has been taken out. I have not been carrying on with Mrs. Donnelly. Until yesterday she was my house keeper.” Friday: “Rev. A. J. Jones wishes to hire a housekeeper. Phone 6291313. Good pay. Usual housekeeping duties. Love in.” Then there was the fellow fired from the think factory — he was caught guessing. “Just tell me one good reason why you can’t buy a new car now,” said the persistent automobile salesman. “Well, I’ll tell you, sir,” replied the farmer. “I’m paying installments on the car I swapped for the car I traded in as part payment on the car I own now.” 16 8 D aktronics D eluxe C heck Printers . . D iebold, Inc. ....................... D rovers N atl. B ank A A corn P rin tin g C om pany ................................... . 68 A m erican Express, T .C ......................................... 12-13 A m erican N atl. B ank & T rust, Chicago . . . . 33 A m erican N atl. B ank & T ru st, St. P a u l . . . . 39 B Bankers T ru st C om pany ................................... B ank of A m erica .................................................. C arroll M cE ntee & M cG inley, In c ...................... C entral B ank & T ru st, D enver ............................ C entral N ational Bank, Des Moines ................. C entral N atl. Ins. G roup ................................... C hicago M ercantile .................................................. Chiles, H eid er & Co. ........................................... Continental 111. Natl. Bank ............................. Digitized N o r t for h w eFRASER ste rn B anker, A ugust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1974 66 22 43 49 73 65 79 60 15 The only bad part of being a good sport is that you have to lose to prove it. Pertinent Question One Good Reason D AUGUST, 1 9 7 4 Listen, Listen Yes, it’s confusing . . when we were young, they taught us to respect our elders and now that we are older . . . they tell us to listen to the youth. Sportsmanship Guessing on the Job C ontinental W estern Ins. Cum m ins-Allison ............. IN D E X O F A D V E R T IS E R S Perseverance Did you ever watch a pipe smoker continually relighting his pipe al though many times it may not actually have gone out and all it needs is a little puffing to get it going? Many ot us v are like that in our daily lives. We feel that we need a fresh match or a new opportunity when really all we need is to expend just a little more ef fort on our present task. We only need to puff a little harder. F irst F irst F irst F irst F irst F irst F F in an cial M arketing . . . M id A m erica .................. N ational, B urlington . . N ational, L incoln . . . . N ational, O m aha .......... N ational, St. P a u l . . . Gross, K irk C om pany G ............. I Insurance Program m ers . . . . Io w a D es M oines N atl. B ank IT T ................................................. 6 11 20 75 69 64 72 63 59 37 68 14 80 10 K Kooker, E . F. Associates . . . 74 L L aSalle N atl. B ank ............... L incoln Benefit L ife . ............. 71 62 The museum guide had patiently shown the visiting women’s club through the museum. “Now, ladies, are there any ques tions you would like to ask? he said cheerfully. “Yes,” a voice from the group piped up. “Can you tell me the kind of wax v you use to keep the floors so shiny? M M arquette N atl. B ank • • ............. M ercantile T rust, St. Louis . . . M erchants N atl. B ank ............... M organ G uaranty T rust Co. . . . M ortgage G uaranty Insurance Co. M osler Safe ..................................... 40-41 . 30 2 21 18-19 . . 3-4 N N ational B ank of Com m erce ............... N orth C entral Life ................................ N orthern T ru st Co.............................. N orthw estern N ational, M nneapolis 61 29 9 34 P ......................... 58 Packers N ational B ank S S aint Louis W arehouse T erm inal . . . Security N atl., Sioux C ity .................... U_ U nited M issouri B ank of Kansas C ity U.S. C heck Book ...................................... U.S. N atl. Bank, O m aha .................... V V an H om e Investm ents............................ V an W agenen, G. D .............................. Z Ziegler, B. C .............................................. 7 74 17 31, 70 . . 56 65 38 32 r W hy the commodity hedger is your ideal loan customer. W hen you loan money to producers of cattle, hogs, eggs, potatoes, butter, milo or lum ber, he uses those com m odities as security for the loan. T h a t’s good security, but the value of those crops could go down severely during the life of the loan. The very best security would be those same com m odities protected by a hedging contract on the Chicago M ercantile Exchange. H edged com m odities are convertible into cash for a fixed am ount regardless of m arket conditions. Therefore you can safely loan up to 100% of the hedged value. T h a t’s good for everybody— your bank and your custom er. O ur free booklet, “ Price and Loan Protection Through H edging” is m ust reading for bankers with agricultural accounts. O rder as many copies as you need with the c o u p o n . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r f 444 CHICAGO MERCANTILE EXCHANGE West Jackson Blvd., Chicago, Illinois 60606 Gentlemen: Dept. 3128 Please send me. copies of “Price and Loan Protection Through Hedging.” N am e A ddress City State Zip You d on’t have to cross the river on your way to Chicago or New York to get the finest bank services. The lowa-Des Moines can do it a l l . . . with a personal touch. We have financial analysts to look at your bank or your custom er’s com pany and p ro je ct fo r them a plan fo r their future. We are capable of handling loans of large am ounts with efficiency . . . the new regional post office and Fed facility make one-day mail service a reality fo r a large business area in the M idw est . . . and all this will be done personally by specialists of our bank who are at hand constantly to aid you. Why not grow with lowans in Iowa? The m e tro politan m oney centers are la rg e r. .. m uch la rg e r. .. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis but we have the facilities to take care of any of your needs at a m om ent’s notice with the same expertise that you have expected in the past. Iowa is grow ing as an industrial state and a financial power. Let’s all grow together! iowa-Des M oines National bank An Affiliate of Northwest Eancorporation Banco
@FedFRASER