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N 0 B 1 HW E,S T E R N


„BMA Plans 60th Convention

Financial Education a Success
Federal Reserve Bank of St. Louis

Bank Marketing Environment

Special Marketing Programs

Putting it
all together to
make good things happen
in Iowa!
Statement of Condition

June30 1975(Unaudited) Board of Directors


Cash and Due From B a n k s ....................................................................$
U.S. Treasury S e cu ritie s........................................................................
Obligations of Other U.S. Government Agencies and Corporations
Obligations of States and Political S u b d iv is io n s .............................
Other S e cu ritie s......................................................................................
Federal Funds S o ld ................................................................................
Bank Premises and E q u ip m e n t............................................................
Other Real E state....................................................................................
Accrued Interest......................................................................................
Prepaid Expenses and Other A s s e ts ...................................................


Total R esources....................................................................................$564,455,132

Demand Deposits ....................................................................................$200,187,474
Time D e p o s its ........................................................................................ 265,550,450
Federal Funds Purchased and Securities Sold Under
Agreement to R e p u rch a se ................................................................
Other Money B orrow ed..........................................................................
Unearned Incom e....................................................................................
Accrued Expenses and Other L ia b ilitie s .............................................
Total Liabilities ...................................................................................$509,067,554

Reserve for Losses on L o a n s ................................................................$


Duane Arnold

Chairman of the Board and President
Iowa Electric Light & Power Company
James E. Coquillette

The Merchants National Bank
V. P. Cullen

Chairman of the Board
First National Bank
E. Howard Hill

Past President
Iowa Farm Bureau Federation
C. Bernard Jacobs

Chairman of the Board and C. E. O.
National City Bank of Minneapolis
Oscar E. Johnson

Senior Partner
Johnson, Stuart, Tinley, Peters & Thorn
J. Locke Macomber

Valley National Bank
F. Forbes Olberg

Banks of Iowa
John F. O’Neill

First National Bank
B. T. Perrine


Capital Stock, Common, No Par V a lu e ............................................... $ 4,151,250
Stated Value $2.50 per share;
Authorized 6,000,000 shares
Issued 1,660,500 shares
S u rp lu s .....................................................................................................
Undivided P ro fits ....................................................................................
Less Cost of Common Stock Reacquired for
the Treasury,1975 and 1974 - 5,81 2 shares ...................................
Total Stockholders E q u ity ..............................................................$ 50,747,323
Total Liabilities, Reserves and C a p ita l......................................... $564,455,132

Senior Partner
Simmons, Perrine, Albright & Ellwood
Ben Schwartz

General Manager
Schwartz and Schwartz
Ed H. Spetman Jr.

Council Bluffs Savings Bank
Max von Schrader

Chairman of the Board
Union Bank and Trust Company
Max von Schrader, Jr.

Union Bank and Trust Company

Banks of Iowa.2
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
Federal Reserve Bank of St. Louis



I -

M osler helps you
see eye to eye w ith your
drive-up custom ers.


A>F|V >-


*y y

With new VISTRA windows.
When you install a Mosler Vistra
direct-vision window system, a couple
of things become perfectly clear.
The customer and the teller.
Vistra windows are new, top to
bottom. Outside, the look is clearly
contemporary, and as inviting to
customers as a window can be. The
teller call button, microphone and
speaker are clustered in a single
sleek panel.
Inside, the system is functionally
engineered to make the most of your
drive-up facility. New fingertip controls,
top-mounted for maximum teller
efficiency. A clean, uncluttered work
surface. Even improved weather­
Federal Reserve Bank of St. Louis

With three different configura­
tions, there’s a Vistra window right
for your particular application. Each
is compatible with all Mosler directvision transaction systems. And each
is available as an “equipment
package" to save you money over
separately purchased components.
The new Mosler Vistra windows.
Look into them. You’ll get a whole
new outlook on drive-up banking.




The M osler Traffic C om m ander. F o r o p ­
tim u m p e rfo rm a n c e , c o m p le te the V istra
w in d o w system w ith any o f several M o sle r
“ T ra ffic C o m m a n d e r ” s yste m s a nd a c c e s ­
sories. A u to m a tic a lly , th e y m a tch w aitin g
c u s to m e rs w ith u n o c c u p ie d tellers. Even a
tra ffic c o p c a n ’t c o n tro l d riv e -u p tra ffic better!

H a m ilto n , O h io 4 5 0 1 2
N orthw estern

Banker, A ugust


Aug. 13-16—Independent Bankers of Min­
nesota Convention, Arrowwood Lodge,
Sept. 21-24— ABA Bank Card Convention,
Americana Hotel, Bel Harbour, Fla.
Sept. 21-24— ABA Supervisory Training
Workshop, Continental Plaza, Chicago.
Sept. 28-Oct. 1—BMA Convention, Las
Vegas Hilton, Nevada.
Oct. 2-4—National Bankers Association,
Inc., Convention, Washington Plaza Hotel,
Oct. 3—6th Annual Security Corporation
Invitational Golf Tournament, The Play­
boy Club, Great Gorge (McAfee), N.J.
Oct. 6-9— IBAA Junior Bank Officer Semi­
nar, Ball State University, Muncie, Ind.
Oct. 4-8— ABA 101st Annual Convention,
New York.
Oct. 12-15—Southwestern Graduate School
of Banking Conference on Planning and
Execution of Policy, Tan-Tar-A Resort
& Golf Club, Osage Beach, Mo.
Oct. 17-18— Association of Registered Bank
Holding Companies Fall Meeting, Kahala
Hilton Hotel. Honolulu.
Oct. 26-29—Iowa Bankers Association 89th
Annual Convention, Hilton Inn, Des
Oct. 26-29—BAI 51st Annual Convention,
Marriott Motor Hotel, Atlanta.
Oct. 26-29—BMA Trust Marketing Work­
shop, San Francisco Hilton Hotel.
Nov. 2-5—Robert Morris Associates 61si
Fall Conference, Fairmont Hotel, San
Nov. 5-8— Southwestern Graduate School
of Banking Assembly For Bank Direc­
tors, The Arizona Biltmore, Phoenix.
Nov. 9-12— ABA National Personnel Con­
ference, Marriott Hotel, New Orleans.
Nov. 9-12—BMA Community Bankers
Seminar, Stouffer’s Inn, St. Louis, Mo.
Nov. 9-12— ABA National Correspondent
Banking Conference, Century Plaza, Los
Nov. 16-18—Association of Registered Bank
Holding Companies Fall Meeting. The
Breakers, Palm Beach, Fla.
Nov. 16-19—ABA National Agricultural &
Rural Affairs Conference, The Shamrock
Hilton, Houston.
Nov. 20-21—Midcontinent Trust Confer­
ence, Radisson Hotel, Minneapolis.

CSBS Elects Officers
At their recent annual convention,
members of the Conference of State
Bank Supervisors elected the following
officers for 1975-76:
President and Chairman— James E.
Faris, director, department of financial
institutions, Indiana.
First Vice President—John B. Olin,
superintendent of banks, Oregon.
Second Vice President— Harvel C.
Adams, bank commissioner, Arkansas.
Secretary-Treasurer—Harry Bloom,
state bank commissioner, Colorado.
Past President—W.
Smoot Brimhall, commissioner of fi­
nancial institutions, Utah.
N o rfor
estern Banker, August
Federal Reserve Bank of St. Louis


Oldest Financial Journal Serving
The Central and Western States

for your August 1975 reading
82nd Year

N o.




EFT Is Developing Fast in the Midwest
Bank Promotions and Changes
Corporate News
BMA Plans “Bonanza ’75” for 60th Convention in Las Vegas
Bank Marketing in Today’s Competitive Environment— Larry Ronson


Family Financial Education a Success in High Schools
How a City Bank Shares Its Computer With Community Banks—
Ronald L. Ingersoll and Gary Wollan
38 Marketing Firms Offer Special Programs for Bank Promotions
42 Realities and Myths of Factoring— William R. Gruttemeyer


Illinois News
Minnesota News
Twin City News
South Dakota News
North Dakota News
Wyoming News
Montana News
Colorado News
Idaho News
Washington News



Utah News
Oregon News
Nebraska News
Omaha News
Lincoln News
Iowa News
Independent Bankers
Convention Report
88 Des Moines News


75 How to Acquire Stable Leasing Business—Jeff Scherrman
90 In the Directors’ Room
90 Index of Advertisers
3 0 6 15th S treet, Des M oines, Io w a 5 0 3 0 9 . Phone 5 1 5 — 2 4 4 -8 1 6 3

M alcolm K . Freeland

Advertising Assistant
Sherri N ielsen

Field Representative
Al K erbel

No. 1343. N orthw estern B anker is
F ifte en th Street, Des M oines, Iow a
postage p aid at Des Moines and at
address Form 3579, m anuscripts, m ail

Ben H aller, Jr.

Circulation Department
Dee Timm erman

Field Representative
Paul M asters

Associate Editor
Linda L. Larson

M ildred Barnes

Field Representative
G len Hicks

published m onthly by the N orthw estern B anker Com pany, 306
50309. Subscription $1.00 p er copy, $10 p e r year. Second class
additional m ailing office. Address all m ail (subscriptions, change of
items) to above address.


lb offera
“free” checking account...

> V



doesn’t mean you have to
give it away.
+ r

When your bank gives away free checking,
you are giving away profit. There is a
better way. BanClub.
According to the Unidex Report on
Service Packages, 34% of a bank’s
customers would consider changing banks
... for a package of services that costs
$3.00 a month and includes free, unlimited
personal checking. BanClub is such a
package. It includes $10,000 accidental
death insurance. BanClub Newsletters that
offer national discounts, special purchases,
and travel opportunities.
Federal Reserve Bank of St. Louis

A free Tax Saver® Checking Account.
(That is a checking account that helps your
customers remember and get all the tax
deductions that are rightfully theirs.) And
free personalized Tax Saver checks.
In less than 30 days, you can offer your
customers BanClub... a package of
services which your competitors cannot
duplicate... a package of services so
valuable to customers that over 450,000
are now paying $3.00 a month for it... a
package of services so profitable to banks
that 550 have already chosen it.

N orthw estern

B a n k e r , August


This advertisement is neither an offer to sell nor a solicitation of offers to buy any of these securities.
The offering is made only by the Prospectus.


July 18,1975

S%% Convertible Subordinated Notes Due 2000
Convertible into Common Stock of Citicorp at any time on or before June 30, 2000,
unless previously redeemed, at a conversion price of $41 per share,
subject to adjustment in certain events.

Price 100%
plus accrued interest from July 24,1975, if any

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified
to act as dealers in securities and in which the Prospectus may legally be distributed.

The First Boston Corporation

Goldman, Sachs & Co,


Lynch, Pierce, Fenner & Smith

Morgan Stanley & Co.

Blyth Eastman Dillon & Co.



Donaldson, Lufkin & Jenrette

Drexel Burnham & Co.

Securities Corporation


Hornhlower & Weeks-Hemphill, Noyes

E. F. Hutton & Company Inc.


Kidder, Peabody & Co.

Kuhn, Loeb & Co.

Dillon, Read & Co. Inc.
Halsey, Stuart & Co. Inc.
A ffilia te of Bache & Co. Incorporated

Keefe, Bruyette & Woods, Inc.

Lazard Frères & Co.


Lehman Brothers

Loeb, Rhoades & Co.

Paine, Webber, Jackson & Curtis

Reynolds Securities Inc.


Salomon Brothers

M. A. Schapiro & Co., Inc.

Smith, Barney & Co.

Wertheim & Co., Inc.

N orthw estern

Banker, August
Federal Reserve Bank of St. Louis


White, Weld & Co.

Dean Witter & Co.




IVj ATIONAL attention is being
^ ^ focused on developments in ElecA tronic Funds Transfer taking place in
Nebraska and Iowa at this time.
Board members of Mid-America
Payments System (MAPS) were to re­
ceive in late July final reports on the
proposed standards and systems design
specifications for EFT within the states
of Nebraska and Iowa, which jointly
operated MAPS between the two state
banker associations. Each state asso­
ciation is continuing with its inde­
pendent approach to providing an ulti­
mate statewide EFT system, based in
great measure on the voluminous,
helpful data provided by the joint
Last January, MAPS member bank­
ers sought as many options as possible
so as to interface with other cards.
They elected to allow a debit (trans­
action) card controlled by certain
specifications. These included using
only track 2 for debit functions as re­
quested by the ABA, which has not
yet developed numbering for cards.
MAPS members decided, in the ab­
sence of existing numbering standards,
to formulate a reasonable approach to
numbering hoping it will thus become
the standard. This numbering allows
for up to 19 characters on a variable
length field on the face of the card.
This will include the routing and
transit numbers (up to eight numbers),
a check number, then up to 10 digits
for the cardholders number (Social
Security, for example, has nine num­
bers) .
The various reports to be studied
now by Nebraska and Iowa officials
include standards, systems design, sys­
tems standards, legal and marketing.
These are considered a starting point
for various phases of EFT implementa­
tion. For example, contracts will be
available for banks to take to their own
legal counsel for personalizing to the
individual bank’s use.
Costs are a highly important factor,
spokesmen relate, and it is hoped that
programs can be built on a modular
basis, allowing later add-on to reach
*the ultimate design of a totally sophis­
ticated EFT system.
The Nebraska Bankers Association
members have organized NETS, Inc.,
to serve as the service organization for
possible developments and operation
..of electronic banking. It is a non-profit
organization. Kermit Hansen, presi­
dent, United States National Bank of
Omaha, was elected president. Vice
Federal Reserve Bank of St. Louis

EFT Is Developing
Fast in the Midwest
president is James D. Lutes, president,
Scribner Bank; treasurer is Paul
Amen, chairman, National Bank of
Commerce, Lincoln; secretary is Rob­
ert Harris, executive manager of the
NBA, Lincoln.
Mr. Hansen told the N o r t h w e s t ­
e r n B a n k e r , “We are taking two di­
rections on a study basis:
“ 1. Interim functioning of electronic
transfer through the corresponding sys­
tem in Nebraska, and
“2. Developing standards for a fu­
ture central switch (one or more) in
which we will set standards on im­
pulse, the message, etc.
“During the interim stage, NETS
will monitor the activity of cor­
respondent banks so there will be uni­
In its initial stage operating through
correspondent banks, NETS could per­
haps advance to serving 50 to 70 Ne­
braska banks. Beyond that, a central
switch would probably be needed.
NETS will pursue
rapidly its second study assignment,
Mr. Hansen said, developing stan­
dards for a future switch.
Mr. Hansen cautioned that too

many bankers tend to consider costs
in the light of what the switch cost will
be. He pointed out that start-up costs
should be taken into consideration —
such as developing a central file, going
on computer if not yet doing so (25%
of Iowa and Nebraska banks are not
on a computer, he said), and the ex­
pertise cost it takes to complete the
EFT activity by major banks in
Omaha, Lincoln and Des Moines em­
phasizes the correspondent bank ap­
proach adopted as phase one of the
NETS, Inc., program. Here is an ac­
counting of the activity taking place in
June and July in those cities:
The First National Bank and the
National Bank of Commerce, the sec­
ond and fifth largest banks in Nebraska
respectively, and both with strong cor­
respondent relationships throughout
the state, have announced a shared
program as well as their individual
EFT programs.
First National has two Docutels
(Turn to page 76, please)
N orthw estern

B an ker, August

1 9 75
Federal Reserve Bank of St. Louis

T w o t im e ly m o n e y -m a k e r s
fr o m T h e F irs t N a tio n a l B a n k o f C h ic a g o

1. Cash L e tte r S e rvice th a t d e livers
fa s te r a v a ila b ility ; c u ts flo a t to th e

2. C u s to d y S e r v ic e t h a t d e liv e r s
fa s te r in fo rm a tio n fo r surer control
o f fix e d in co m e s e c u ritie s .

Being located 30 minutes away
from the world’s busiest airport is an ad­
vantage. And we’ve got that advantage
worked down to minutes. Not just hours.
After your cash letter is processed,
a detailed endpoint analysis can be prepared
—so we can study your cash letter composi­
tion and counsel you to maximize your
Our availability schedule is out­
standing... and is constantly being updated
with additions to our immediate-availability
list and more convenient cut-off times. This
helps you in arranging your shipping
In addition, we have no two-day
points. So 100% of your cash letters produce
working funds fast!
And to assure the fastest possible
delivery of your cash letters to us, our corre­
spondent bankers have the experience and
resources to custom-design a high-speed
system for you.
If fast availability is important to
you, think First Chicago.

We’re on-line; computerized. And
have been for more than 2 years.
• Initial receipts are sent within
24-hours of transactions.
• Advices of credit for interest and
maturity are sent within 24-hours.
• Detailed statements of holding
can be sent within 24 hours of request.
• Pledge-receipts are sent to both
you and pledgee within 24-hours of written
authorization; faster with phone-call notice
that authorization is coming.
• Notices of maturing U.S. Treas­
ury bills and exchanges of U.S. Govern­
ment obligations are sent 2 weeks prior to
required instruction time so you’ll have
extra time for considered-decision making.
• All records are tied directly to
your initial receipts and assure you of
“audit integrity”.
Movement of securities into or out
of our Custody —turn around time —is
expedited, swift, and controlled.
For fu ll information on Cash
Letter Service and C ustody Service,
call your First N ational Bank o f Chicago
correspondent banker, (312) 732-4101, or
write us. I t’s your time; it’s your earnings.

Th e First N a tio n al Bank of C hicago (ff|
The Banks, Bank Holding C om panies and R ela ted A c tiv itie s Division.
M em ber FDIC
Federal Reserve Bank of St. Louis

N orthw estern

Banker, Ä u g e s t

Î9 7 5


Bank Promotions and Changes

ROMOTIONS and other news announcements have been made by
the following banks:
American National Bank and Trust
Company, Chicago: Keene H. Adding­
ton has b e e n
named adminis­
trative vice presi­
dent by the board
of directors.
Mr. Addington,
who was president
of Pandick Press
M i d w e s t , Inc.,
Chicago, will have
K . H. A D D IN G T O N
the marketing and operations areas of
the bank.
A graduate of Amherst College, Mr.
Addington, 43, was associated more
than 13 years with the firm of MiehleGoss-Dexter, Inc., where he was vice
president-marketing before becoming
president of Pandick Press, a subsidiary
of a New York based financial printer.

At the same time, Rex A. Sinquefield and Harold L. Arbit have been
promoted to second vice presidents in
the trust investment division. Mr. Sinquefield joined the bank in June of
1972 as an investment research ana­
lyst. He became a portfolio manager
and trust officer in 1973. Mr. Arbit
joined the bank in August of 1971 as
a management trainee. In 1972 he was
promoted to trust investment officer.
Bank of America, San Francisco:
John Oliver Wilson, a former econom­
ics professor at
Yale University,
has joined the
bank as vice pres­
ident and senior
econom ist. Mr.
Wilson, who has
taught and lec­
tured at the Uni­
versities of Con­
necticut and Min­
J . O . W IL S O N
nesota as well as

Yale, was an assistant director to Don^
aid Rumsfeld in the Office of Economic Opportunity from 1969 to 1972 and
later served as director of planning for
the U. S. Atomic Energy Commission
under James Schlesinger. Mr. Wilson
most recently was president and chief
executive officer of North Star Re­
search Institute, an organization estab­
lished by the University of Minnesota
and the Federal Reserve Bank of Min­
The Bank of New York: Jerome P.
Isoldi and John E. Otis, Jr., have been
elected vice presidents. Mr. Isoldi <u
joined the bank in 1957, was named,
assistant operations officer in 1968 and
operations officer in 1969. Mr. Otis
joined the bank in 1969, became assis­
tant treasurer in 1970 and assistant
vice president in 1972.
Central National Bank, Chicago:
Arnold B. Peterson has been elected ^
senior vice president. Mr. Peterson
joined the bank’s correspondent divi­
sion in July of 1964 with the merger
of Central National and the National
Bank of Commerce. Prior to that he ^ a
also was with the Citizen’s National
Bank of Chicago and the Federal Re- *
serve Bank of Chicago.
Commerce Bancshares, Inc., Kansas

The Board of Directors
is pleased to an n o u n c e
the election of

Harry S. Schaefer
to the office of
S enior Vice P resid en t




N o rfor
estern Banker, August
Federal Reserve Bank of St. Louis





w Ê H i J

The Continental
Correspondent Conununity
V- >


Bank M anagement * Objectives
Investm ents * Structure • Policy
Com m unications * Systems

W here correspondents
explore m anagem ent





231 S O U T H L A S A L L E S T R E E T , C H I C A G O . I L L I N O I S 60693
Federal Reserve Bank of St. Louis

N orthw estern

B an ker,





City, Mo.: Michael S. Dafferner has
joined the company as assistant direc­
tor of marketing. He most recently
served as director of corporate market­
ing and advertising for the Indiana Na­
tional Bank in Indianapolis from June,
1973, to June, 1975. He also has
worked in commercial lending for the
State Bank in Freeport, 111.
The board of directors of Commerce
Bank also has elected Eric Eberhardt,
28, and Larry Swanson, 31, assistant
vice presidents in the metropolitan di­
vision. Mr. Eberhardt joined the bank
in June after serving as assistant vice
president in the national and metropol­
itan divisions for Bank of The Com­
monwealth in Detroit since June,
1973. He is a graduate of Michigan
State University and the National
Commercial Lending School in Nor­
man, Okla.
Mr. Swanson most recently served
as commercial banking officer for the
National Bank of Tulsa from June,
1972, until May of this year. Prior to
that he was with the marketing divi­
sion of APCO Oil Corp. in Oklahoma
Continental Bank, Chicago: Man­
agement responsibilities of three exec-

utive vice presidents at the bank and
its parent holding company, Continen­
tal Illinois Corporation, are affected by
a senior-management realignment.
Charles R. Hall, formerly head of the
administrative services department,
was named head of the trust and in­
vestment services department. He suc­
ceeds Ray F. Myers, executive vice
president, who was appointed corpo­
rate counsel, secretary to the board
and chairman of the trust executive
committee. Gail M. Melick, head of
the operations and management ser­
vices department, in addition, has been
assigned responsibility for the corpo­
rate planning division under Herbert
E. Johnson, senior vice president, as
well as for the marketing services and
area development divisions, both for­
merly under the administrative services
department. The two remaining divi­
sions of administrative services also
have been reassigned to eliminate that
department. The personnel division
will report to the executive office and
the public affairs division will report
to Mr. Myers in the corporate coun­
sel’s office.
Eight vice presidents have been
elected: David E. Maguire, adminis­
trative services; Harry J. Hanson,



bond; Michael H. Bailie, real estate;
Donald J. Baer, Robert E. Hendricks,
and Theodore C. Kauss, Jr., trust;
James M. O’Keane and James M.
Voss, commercial banking, and Ter­
rance J. Bruggeman, Continental Illi­
nois Leasing Corporation, a whollyowned subsidiary of Continental Illi­
nois Corp.
Elected second vice presidents are:
William M. Goodyear and John R.
Rucker, commercial banking, western
division; James E. DeNaut, Ford G.
Pearson, Stephen W. Scheetz, Bruce
A. Simons and Bruce A. Smith, com­
mercial banking; Arnold E. Davis and
Richard P. Grippando, bond; Paul E.
Davies, Jr., and William I. Rau, inter­
national; Gregory D. Bruhn, real es-

Join the
/A G E N C Y P O O L

Fbr a Rsrmanent Refresher
Phone (515) 278-3000

Phone (515) 278-3345

N ew Home Offices:
11201 Douglas Avenue (Interstates 35-80), Des M oines, Iow a 50322

N ofor
r t h FRASER
w e s t e r n B a n k e r , A u g u s t 1 9 75
Federal Reserve Bank of St. Louis

T he
M anager.


He found a way out
of the day-late,
dollar-short dilemma.




Dave has found a system that provides more
cash on hand for his bank through:
Our R a p id Transit S y ste m — The
Northern Trust’s own direct send program
accepts Dave’s unsorted cash letters later
than most deadlines in Chicago and pro­
vides immediate availability for many finan­

cial centers throughout the country.
Our Automatic Funds Program—a
unique reporting system that gives him to­
day’s inform ation today on available
Our Deposit Analysis Service—a peri­
odic, computerized analysis that provides

complete, accurate data on deposit activity.
End result: Dave has more money
available to invest for more profit. You
could too. Our Trial Cash Letter will help.
To set it up, contact your Calling Officer at:
The Northern Trust Bank, 50 S. LaSalle
St., Chicago 60690. (312) 346-5500.

The Northern Trust Bank
Federal Reserve Bank of St. Louis

Bring your financial future to us.



W hen w |
the talk
turns to ^

tu rn to
It's a matter of good judgement to contact Ziegler before
making a commitment. This is true, because you'll be
tapping a well of specialized experience exceeding that
of any other source.
Nobody knows more about serving the capital needs
of hospitals, schools and geriatric-care facilities than
B. C. Ziegler and Company. We've been at it for well over
60 years — in which time we've underwritten well over
$2 billion in institutional financing. . . all over America.
Our bond issues cover a broad range —$500,000 to $40
million —conventional and tax exempt.
We market bond issues to a wide cross-section of the public
— not to just a few large investors. Your local hospital's
financial control is protected. Our coast-to-coast facilities
assure fast action, too.
From the standpoint of your own portfolios and those of
your bank's customers, consider this fact: many of our
issues currently have bonds yielding over 9%.
If your local hospital needs financing, write or telephone
collect. Offices in leading cities, coast to coast.

B.C. Ziegler and Company
West Bend, Wisconsin 53095 • Phone (414) 334-5521
O ne of the financial service arms of Th e Z ie g le r Com pany, Inc.

o r t hFRASER
w e ste rn B an ker, August
DigitizedN for
Federal Reserve Bank of St. Louis


tate, and Leonard P. Diorio and Ron­
ald F. O’Connor, trust.
Mr. Goodyear, who joined the bank
in 1972, works with correspondent and
commercial customers in Colorado,
Minnesota and Texas. He was elected
a commercial banking officer in 1974.
Mr. Rucker works with correspondent
and commercial customers in Minne­
sota, Montana, North Dakota and
South Dakota. He joined the bank this
year. Mr. Rucker was with the First
National City Bank, New York, from
1967 to 1968 and American National
Bank, Chicago, from 1968 to 1974.
The Drovers National Bank of Chi­
cago: Michael J. Whelan has been ad­
vanced to vice chairman from presi­
dent. Philip M. Lewin has been elected
president, chief executive officer and
a director. Mr. Lewin was vice presi­
dent of Continental Bank of Chicago
and was with the bank for 19 years.
He is a graduate of Northwestern Uni­
Robert F. Corey, senior vice presi­
dent in charge of the investment divi­
sion, has assumed
additional respon­
sibilities as head
of the correspon­
dent banking di­
v i s i o n of The
Drovers. He will
work closely with
Fred D. Cum­
in i n g s, Bernard
D. Miller and Ed­
ward L. Rietz, Jr.
who are presently the correspondent
bankers in Illinois, Iowa and Wiscon­
sin. Appointed a member of the corre-.
spondent team is Richard P. Griffith.
Exchange National Bank of Chicago:
William R. Bryan, senior economist
and director of
research for the
bank and profes­
sor of finance at
the University of
Illinois, Urbana,
has been elected
to the boards of
the bank and its
parent company,
Exchange Inter­
national Corpora­
tion. Dr. Bryan has been with the bank
since 1968 providing background anal­
ysis for its monthly “Economic Fore­
cast.” He also has been senior econo-,
mist for the Federal Reserve Bank of
St. Louis, Mo., and from 1970 to 1971
assistant to the director of debt analy-



C onsolidated S ta te m e n t of C ondition



June 30, 1975

Cash and Due from Banks...................................................
Time Deposits in Other Banks.............................................
Federal Funds Sold and Securities Purchased
under Agreement to Resell..............................................
Investment Securities:
U.S. Treasury Securities....................................................
State and Municipal Securities........................................
Other Securities.................................................................
Trading Account Securities..................................................
Direct Lease Financing.................................................
Customers Acceptance Liability...........................................
Bank Premises and Equipment............................................
Other Assets...........................................................................
Total Assets............................................................................

$ 627,123,509

F. M U R R A Y

Chairman of the Board
S T A N L E Y G. H A R R I S , JR.

Vice Chairman of the Board
C H A L K L E Y J. H A M B L E T O N



Chairman and President
Stewart-Warner Corporation


W . B A I RD

Baird & Warner, Inc.

A. B U R N H A M

President and Chief
Executive Officer
Marshall Field & Company

Senior Vice President —
Sears, Roebuck and Co.

President and Chief
Executive Officer
Masonite Corporation
R O B E R T C. G U N N E S S


Demand Deposits..................................................................
Savings Deposits and Certificates.......................................
Other Time Deposits.............................................................
Deposits in Foreign Offices..................................................
Total Deposits...................................................................
Federal Funds Purchased and
Other Short Term Borrowings.........................................
Acceptances Outstanding.....................................................
Accrued Interest, Taxes and Other Expenses.....................
Mortgage Payable.................................................................
Other Liabilities.....................................................................
Total Liabilities.....................................................................





Former Vice Chairman of the Board
Standard Oil Company (Indiana)


Estate of Norman W. Harris

President and Chief
Operating Officer
Esmark, Inc.

B. L A N T E R M A N

AMSTED Industries Incorporated
r e m ic k

mcdow ell

Retired Chairman of the
Executive Committee
Peoples Gas Company


A. C. Nielsen Company
J A M E S E. O L S O N

Illinois Bell Telephone Co.


Capital Stock..........................................................................
Surplus Arising from Assumption of Convertible
Capital Notes by Parent Company..................................
Undivided Profits...................................................................
Equity Capital.........................................................................
Total Liabilities and Capital..................................................



G E O R G E A. R A N N E Y

Vice Chairman
Inland Steel Company

$ 248,907,383

Chief Executive Officer
G. D. Searle & Co.

P. V E N E M A

Chairman of the Executive
Universal Oil Products Company

Harris Trust and Savings Bank
W h o l l y o w n e d s u b s i d i a r y o f H A R R I S B A N K C O R P , I nc.

MAIN BANKING PREMISES: 111 West Monroe Street, Chicago, Illinois 60690
OPERATIONS CENTER AND BANKING FACILITY: 311 West Monroe Street, Chicago, Illinois 60690
INTERNATIONAL OFFICES: London; Mexico City; Nassau; Sao Paulo; Singapore

Harris Bank international C orporation: 77 Water Street, New York, N Y. 10005
Harriscorp Leasing, Inc.: 111 West Monroe Street, Chicago, Illinois 60690
W h o l l y o w n e d subsidiaries o f H A R R I S




Federal Reserve Bank of St. Louis

N o rth w e ste rn

Banker, A u gust




sis for the United States Treasury.
First National Bank of Kansas City,
Mo.: J. Walter Peniston, senior vice
president, has retired after a 45-year
career with the bank. William O. Weis,
vice president, has been named to suc­
ceed Mr. Peniston as officer in charge
of the Missouri correspondent bank
territory. Dean Howard, assistant cash­
ier, has been assigned calling responsi­
bilities in Missouri. Richard W.
Brooks, assistant cashier, will become
a new member of the correspondent
division and will be calling on Missouri
banks. William J. Fisher, a correspon­
dent division member since 1972, has
been elected vice president and secre­
tary of First National Charter Corpo­
ration, parent company. He continues
as a bank officer but will have primary
responsibilities with First National
Other promotions announced by the
bank include: D. Thomas Chapman
II and E. Marsh Douthat III, vice
presidents; Steven N. Palmer, trust of­
ficer; Gregory A. Stauffer, James R.
Brock and Daniel L. Enterline, assis­
tant trust officers; Larry Bedell, J. D.
Chambers, Robin Bell and Michael S.
Spafford, assistant cashiers, operations
Harris Trust and Savings Bank, Chi­
cago: William M. Wilcox has been
named a vice president, municipal
bond division. Named assistant vice
presidents are Valerie K. Hanna, mu­
nicipal bonds; James A. Ryser, person­
nel, and John M. Baly, data process­
ing. Other promotions include: Mi­
chael J. Paciorek, investment officer;
Thomas J. Dolasky, systems officer;
Robert E. Wassman, operations offi­
cer; Nancy B. Donati, trust officer, and
Ralph B. Sandvig, trust counsel.
LaSalle National Bank, Chicago:
Louis Y. Corey has been named vice
president, international d i v i s i o n .
Named assistant vice presidents are
Aratula G. Vedalakis, international di­
vision; Randall W. Hildeman, invest­
ment department, and M. Hill Ham­
mock, real estate loan division.
National Boulevard Bank, Chicago:
The following promotions have been
announced, according to Irving Sea­
man, chief executive officer: Ronald F.
Lorenz and Jeffeory E. Miller to assis­
tant vice president; Richard J. Duty
and Henry S. Mazik to assistant comp­
troller; Mark A. Lustig to assistant
auditor; Jean S. Anderson, Barbara
Evan, Elizabeth E. Gimblett, G. Allen
Cole, James F. Dickerson and Eduardo
N ofor
w e ste rn B a n k e r , A u g u s t
Federal Reserve Bank of St. Louis





A. Henson to assistant cashier; Augusto M. Oloroso to operations officer,
and Wesley M. Martin to assistant sys­
tems officer.
Northern Trust Company, Chicago:
Directors have made the following
changes in the official staff:
In the banking department, Philip J.
Carlson was named vice president. New
second vice presidents include Andrew
B Bernhardt, Robert A. Lennox, Harry
R. Olsen and Thayer Rudd, Jr.
Mr. Carlson joined Northern Trust
in 1968 after earning his A.B. and
MBA degrees from the University of
Michigan. He was named assistant
cashier in 1969, and second vice presi­
dent in 1972. He serves the northwest­
ern division of the banking department
and is responsible for business in the
states of Iowa, Nebraska and Wyom­

P. J . C A R L S O N



Mr. Olsen is in division 2 of the
metropolitan group. He received his
B.S. degree from the University of Illi­
nois and his M.B.A. degree from
Northwestern University before joining
the bank in 1969. He was named a
banking officer in 1972. He served as
a calling officer in Iowa for four years
prior to his transfer to the metopolitan
J. Terrence Murray, Gifford H.
Hampton, III, John J. Borland and
James P. Giambalvo were named
second vice president in the trust de­
New appointments in the trust de­
partment include John W. Hogge,
second vice president; Donald L.
Aimone, trust officer, and Anthony
Fieldhouse, investment officer.
United Missouri Bancshares, Inc.,
Kansas City: Joe H. Vaughan, Jr., 27,
has resigned from the staff of the Kan­
sas City Area Chamber of Commerce
to become public relations assistant for
this holding company. He had been in
the Chamber’s economic development
section since April, 1974. He was a
broadcast journalist before joining the
Chamber staff, working for radio sta­
tions in Topeka, Lawrence and the
Kansas City area.
Valley National Bank of Arizona,
Phoenix: G. E. Wright has been elect­
ed cashier of the bank and secretary
of the corporation. Mr. Wright has
been with the bank for 24 years and
has been a vice president for 10 years.
He assumes the duties of Earl H.
Brunken, cashier since 1964, who has
been ill for several months. Mr. Bruinken has resigned the positions but will
remain a senior officer.

Heads St. Louis Ad Club
Marjorie A. Longo, advertising and
public relations officer, Mercantile
B a n c o rp o ra tio n
Inc., was elected
president of the
Advertising Wom­
en of St. Louis at
its recent annual
membership meet­
Mary Ellen Heldman, 1869 Ad­
vertising Inc., was
elected first vice president, Irma Strzelec, The Seven-Up Company, second
vice president; Jeannine Morgan, The
Catholic Hospital Association, secre­
tary, and Margaret Bittman KSD-TV,


H -V



Federal Reserve Bank of St. Louis

N orthw estern

B an ker,




;.^V'5:r' Vmt,1
É I |É 8 p f Ì
i t e
- • 1 1 - :•!


e m





m ?; „
* W Ë Ê m m r;
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•' : . *•- ’ im
■ ' c« . - . ■;/,' ' - ' _. '


iS s ll


jf lg g g s
Federal Reserve Bank of St. Louis


“MGIC gives us more Directors’ & Officers’
liability coverage than any other insurer,
at a reasonable premium?
Did you analyze coverage
offered by a number of
D & O liability



D ale L. Jern b erg,
Exec.V.P. and
D irector, N ational
Bank of Washington,
D.C. tells how MGIC
provides coverage
for directors and
officers, plus an ex ­
clusive combination
of k ey features
tailored to a bank’s

r r


“Yes. Four besides MGIC.
And very thoroughly. We
found that types and quality
of coverage varied all over
the lot. But only MGIC
provided a complete protec­
tion tailored to our bank’s
needs. And for a reasonable
How do M GIC’s features
compare with the others?

“Their various plans, limits
of liability, and deductibles
offer extremely attractive
options. The $5 million
policy we have with MGIC
protects all directors and
officers. In any case covered,
it pays 100% over the
deductible limits we selected.
“Also, when we indemnify
to the extent permitted by
law, MGIC’s coverage has
far fewer exclusions than
many other insurers. This
‘waiver of exclusions’ is
most important to us.
“In our judgment, MGIC’s
D & 0 liability coverage is
by far the best value we
could buy. Other companies
just couldn’t provide us the
kind of protection that
MGIC offers.”
How do you feel about
your right to participate
in selection of counsel in
the event of a lawsuit?

“It is very important.
MGIC would give us a free
hand to choose counsel,
subject to their approval.
Federal Reserve Bank of St. Louis

They also could advance
legal fees in the event of a
costly lawsuit which is
covered. And they would
cooperate with us to counter
unfavorable publicity that
could be damaging to the
named individuals and to
our bank.”
Do you find greater
awareness of your
specific needs and
greater flexibility in
M GIC’s D & O policy?

“Absolutely. The other
policies seemed pretty
general, and not tailored to
a bank’s needs. MGIC, on
the other hand, really
knows the financial com­
munity, because they’re part
of it. This, coupled with
the fact that they did their
‘homework’ before the initial
proposal, proved the key to
our decision. MGIC
thoroughly knew what we
needed and the result is a
very secure feeling that we
have the best D & O liability
insurance we could buy.”


Totally tailored
D & O liability protection.
And we mean total.
MGIC Indemnity Corporation

A Subsidiary of MGIC Investment Corp.
MGIC Plaza, Milwaukee, Wl 53201
N orthw estern

Banker, August


Corporate News
ROMOTIONS and other news an­
nouncements have been made by
the following firms:

The Firestone Tire & Rubber Com­
pany, Akron, Ohio: Robert P. Beasley,
61, has been elected vice chairman, a
new staff position, and Kenneth W.
Reese, 44, has been elected to succeed
Mr. Beasley as executive vice presi­
dent in charge of finance. Both will re-

Corporate Policyholders Counsel,
Inc., Chicago: Ronald E. Seaver has
been appointed director of profession­
al planning. Richard J. Burns has been
named director of employee benefit




services. Mr. Seaver joined CPC in
1970 as account supervisor. Mr. Burns
joined the company in 1973 as em­
ployee benefits consultant.

...the BtSI m ilI
for luxury
■ Spacious suite
with its own
■ Complimentary
breakfast served
in your suite.
1300 N. ASTOR ST.
William C. Wolf,
Gen. Mgr.
(312) 943-1111

U'here you dine
in elegance

de P A R I S

N o rfor
e ste rn B a n ker, August
Federal Reserve Bank of St. Louis



port to Richard A. Riley, president
and chief executive officer.
Mr. Beasley will serve as special
counselor to Mr. Riley. Mr. Reese, for­
merly vice president and treasurer, will
be the company’s chief financial offi­
Hibbard, O'Connor & Weeks, Inc.,
Houston: Harry S. Schaefer has been
e l e c t e d senior
Mr. Schaefer is a
member of the
National Associa­
tion of Securities
Dealers and the
Securities Indus­
try Association.
He j o i n e d the
company in 1972
H s schaefer
and became as­
sistant vice president in December of
that year. He was elected a vice presi­
dent in mid-1973.
Information Systems, Inc., Omaha,
Nebr.: Robert E. Myers, formerly in
charge of the data
processing depart­
ment in an Oma­
ha b a n k , has
joined the compa­
ny which special­
izes in the sale of
film and other
micro-film s u p ­
plies and services
to financial insti­
tutions. Mr. My­
ers, who has a Masters in Business
Administration from the University of
Kansas, was with the controller depart­
ment of Ford Motor Company in Dear­
born, Mich., prior to 1973 when he
entered banking.
lames Talcott, Inc., Oak Brook,

111.: Frank J. Pope has been appointed
credit administrator for the firm’s busi­
ness finance division, according to
Russell B. Donahue, executive vice
president of the division.
Mr. Pope joined the business finance
division in 1968, was named credit
manager for the Chicago district office
in 1970 and was elected a divisional
vice president in 1974.
Western Securities Co., Omaha,
Nebr.: Richard W. Johnson has been
elected chairman and chief executive
officer. Mr. Johnson, 46, was a gen­
eral partner in the firm of Arthur An­
dersen & Co., independent public ac­
countants, and was managing partner
of its Omaha office for 14 years until
his retirement from the firm in 1974.
Ronald W. Hunter, 45, senior partner
in the law firm of Hunter and Houli­
han, and a practicing attorney in
Omaha since 1961, has been named
a director. E. C. Spelman, 68, presi­
dent since 1963, has retired as presi­
dent and director. He will retain his
stock ownership position.
Mr. Johnson and Mr. Hunter are
majority stockholders in Johnson
Equities, Inc., an investment company
owned by Omaha area investors. John­
son Equities Inc., together with
Charles A. Rasmussen, senior vice
president of Western Securities Co.,
have acquired the majority stock inter­
est in Western. Mr. Rasmussen joined
the company in 1946 and has been an
officer for 17 years. He will continue
to manage the Omaha office and will
have additional supervisory responsi­
bilities for the Des Moines, la., and
Denver offices.
Ernest V. Butters and Russell D.
Lovelace, two of the selling stock­
holders, have retired from the board,
and Everett C. Spelman, Jr., has re­
signed as vice president and director.
All other officer and directors will con­

Western Union Teleprocessing, Inc.,
Mahwah, N.J.: Peter R. Genereaux
has been elected executive vice presi­
dent of the firm and appointed general
manager of the firm’s Western Union
Banking Systems division. He will di­
rect all division activities including
marketing, engineering and financial
operations. The firm provides systems
to automate bank money transfer func­
tions and monitor reserve require­
ments. Prior to joining Western Union,
Mr. Genereaux served as vice presi­
dent and group manager at Chemical
Bank, New York.


This advertisement is neither an offer to sell nor a solicitation of offers to buy any of these securities.
The offering is made only by the Prospectus.

July 23, 1975


$ 1 0 0 ,0 0 0 ,0 0 0

First Bank System, Inc.

8%% Notes Due June 30, 1983
Price 100%

V ^

plus accrued interest from July 29, 1975, if any.




6S% Convertible Subordinated Debentures Due 2000
Convertible into Capital Stock of the C om pany at any time prior to m aturity,
unless previously redeemed, at a conversion price of $48.50 a share,
subject to adjustm ent in certain events.

Price 100%
plus accrued interest from July 29. 1975, if any.

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified
to act as dealers in securities and in which the Prospectus may legally be distributed.

The First Boston Corporation
Morgan Stanley & Co.

Dillon, Read & Co. Inc.

Drexel Burnham & Co.


Goldman, Sachs & Co.


Halsey, Stuart & Co. Inc.

Hornblower & Weeks-Hemphill, Noyes

A ffilia te of Bache & Co. Incorporated

E. F. Hutton & Company Inc.


Keefe, Bruyette& Woods, Inc.

Kidder, Peabody & Co.


Lehman Brothers


Loeb, Rhoades & Co.
Reynolds Securities Inc.
Smith, Barney & Co.


Merrill Lynch, Pierce, Fenner & Smith

Paine, Webber, Jackson & Curtis



Salomon Brothers
Warburg Paribas Becker Inc.


M. A. Schapiro & Co., Inc.
White, Weld & Co.

Dean Witter & Co.

Dain, Kalman & Quail


Piper, Jaffray & Hopwood


Federal Reserve Bank of St. Louis

N o rth w e ste rn

B anker, A u gust


number, amount of loan, total dollar
figure, and loans rejected.
Computer-Printed New Loan List —
at the end of the month, a new loan list
will be sent showing due date, account
number, borrower name, yield, amount
of loan, payment amount, term and
much more information for account­
Payment Book — No more than a
typewriter or a ballpoint pen is needed
to complete this payment book. In less
than a minute, you can prepare the
book with borrower name, account
number, payment amount, due date,
and give to the borrower with the dis­
closure papers.
The initial loan information is sub­
mitted on an easy to fill out 4 x 6 inch
form. This data is then computer pro­
cessed, the ledger and report are pre­ '■*) -4\
pared and mailed.
Rand McNally reports this new loan
service is the most accurate, economi­
cal, efficient answer to the non-computerized payment program designed
for small to medium financial institu­
NEW loan service directed to the Precomputed Ledger — showing bal­
tion and company.
small to medium size financial in­ ance, due date, payment amount, pay­
stitution has been announced by Rand off balance, rebate on interest, insur­ First Bank System
McNally (Financial Systems Divi­ ance and other changes as well as
Offers $50 Million Notes
sion), Chicago. The new loan service monthly earnings.
First Bank System, Inc., announced
can provide the loan department with Computer-Printed Run List — each
July 2 it has filed a registration state­
an up-to-date accounting system in­ time loans are ordered, a run list is
ment with the Securities and Exchange
sent for verification showing account
Commission relating to proposed offer­
ings of $50 million of notes due June
30, 1983, and $40 million of converti­
ble subordinated debentures due in the
year 2000. The First Boston Corpora­
The Second
tion has been named manager of the
Conference on Planning and Execution of Policy
group which will offer the
in Small and Medium Sized Banks
issues publicly.
Sponsored by
Twenty-five million dollars of the
The Foundation of the Southwestern G raduate School of Banking
proceeds from the sale of the notes will

New Rand McNally Loan Service



Designed for Presidents, other Senior Officers and selected Directors
A Three-day Conference covering
Planning Strategy and Executive Control
of Growth, Expenses and Profits
Manpower Development for Growth and Continuity
Planning and Financing the Banking House
Scheduling Capital Requirements, Valuation
of Bank Stock, and M arketing Bank Issues
Conducted by a faculty of twenty
with lectures, discussion sessions and work-shops
at Tan-Tar-A, Osage Beach, Missouri
October 12 - 15, 1975
For Information write:
The Foundation of the Southwestern G raduate
School of Banking, SMU Box 1319, Dallas,
Texas 75275; or call A /C 214-691-5398.
N ofor
e s te rn Banker, August
Federal Reserve Bank of St. Louis


be applied to the repayment of term
loans, and $10 million will be investee
as subordinated capital notes of $5
million each in the First National Bank
of Minneapolis and The First National
Bank of Saint Paul. The remaining $15
million will be used for various cor­
porate purposes.
Thirty million dollars of the pro­
ceeds from the sale of the convertible
debentures will be invested as equity
capital of $15 million each in the First
National Bank of Minneapolis and The
First National Bank of Saint Paul. The
remaining $10 million will be invested
as equity capital in various other sub­
sidiary banks.
The note offering is rated AAA by
Standard and Poor’s and AAA by
Fitch Investors Service. The rating by
Moody’s Investors Service is pending.


Morgan Guaranty Trust Company



C onsolidated sta tem en t o f eondition J u n e JO. 107.*

D irectors

A ssets

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 ................................... $ 3,963,586,434
Interest-bearing deposits at b a n k s ........................
U. S. T reasury se c u ritie s.........................................
Obligations of U. S. governm ent agencies . . .
Obligations of states and political subdivisions .
O ther investm ent s e c u ritie s...................................
Trading account securities —n e t ........................
Federal funds sold and securities
purchased under agreem ents to resell . . .
L o a n s ............................................................................


Prem ises and equipm ent —n e t ..............................
Custom ers’ acceptance lia b ility ..............................
Other a s s e ts .................................................................


Total a s s e t s ............................................................. $25,403,013,869

Chairman of the Board
W A L T E R H. P A G E


J. P A U L A U S T I N

Chairman o f 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

Chairman of the Board
International Business Machines Corporation



D em and d e p o s i t s .....................................................$ 6,329,743,828
Time d e p o s i t s ...........................................................
Deposits in foreign o f f i c e s ...................................
Total d e p o s i t s ..................................................... 18,625,683,164
Federal funds purchased and securities
sold under agreem ents to repurchase . . .
Com mercial paper of a su b sid ia ry ........................
Other liabilities for borrowed money . . . .
Accrued taxes and e x p en ses...................................
Liability on a c c e p ta n c e s .........................................
Dividend p a y a b l e .....................................................
Convertible debentures of a subsidiary
(414 % , due 1 9 8 7 ) ...............................................
Mortgage p a y a b l e .....................................................
Other lia b ilitie s...........................................................
Total lia b ilitie s ....................................................... $23,824,691,608
D eserve for possible loan l o s s e s ........................$


W . G R A H A M C L A Y T O R JR.

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 of the Board
Campbell Soup Company

Chairman, Bethlehem Steel Corporation


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

Capital aeeounts

Capital notes (6Vs% , due 1 9 7 8 ) ........................$
Capital notes (5% , due 1 9 9 2 ) ..............................
Stockholder’s equity:
Capital stock, $25 p ar value (9,500,000 sh ares) .
S u r p l u s .......................................................................
Undivided p r o f i t s .....................................................
Total stockholder’s e q u ity ...................................

S. G A T E S


R A L P H F. L E A C H

Chairman of the Executive Committee
J O H N M . M E Y E R JR.


Total liabilities, reserve, and capital accounts $25,403,013,869
Assets carried at $2,064,498,000 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

H O W A R D J. M O R G E N S

Chairman of the Executive Committee
The Procter & Gamble Company

w i t t

p e t e r k i n

j r


Vice Chairman of the Board
D O N A L D E. P R O C K N O W

W estern Electric Company, Incorporated

Vice Chairman of the Board

A'eir Y o r k 23 W all Street, 522 F ifth A venue at 44th Street,

616 Madison A venue at 58th Street, 40 Rockefeller Plaza at
50th Street, 299 Park A venue at 48th Street
W e s t C oast Morgan Guaranty International B ank of

San Francisco, 400 M ontgomery Street, San Francisco, Ca. 94104
Soutlurest Morgan Guaranty International B ank of Houston,

1100 M ilam Street, Houston, T exas 77002
Canada J. P. Morgan of Canada Lim ited

25King S treetW est, Toronto M5L 1G2
A b roa d London, Paris, Brussels, Antw erp, F rankfurt, Düsseldorf,

Munich, Zurich, Milan and Rom e (Banca Morgan Vonwiller),
Tokyo, Singapore, Nassau; Representative offices in Madrid,
Beirut, Sydney, Hong Kong, Manila, Säo Paulo, Caracas
Federal Reserve Bank of St. Louis


President, Ralston Purina Company



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 orthw estern

Banker, August


B of A Offers New Service
Bank of America is offering unse­
cured revolving lines of credit to qual­
ified individuals.
The new service, called PersonaLine
Credit, offers lines of credit ranging
from $3,000 to $15,000 depending up­
on qualifications of borrowers. It
makes available under one commit­
ment funds for automobile purchases,
home improvements, education, emer­
gency medical expenses and other
long-term personal debts. The service
offered through the bank’s offices
statewide, saves borrowers the time
and inconvenience of negotiating sep­
arate loans and waiting for new credit
Borrowers will be able to draw on
their lines of credit automatically by
writing special personalized checks in
amounts of $300 or more.
The method of repayment will be
flexible, but a minimum monthly pay­
ment on the outstanding balance will
be required. A borrower may pay more
than the minimum monthly payment
with no prepayment penalty. Finance
charges will be computed on the daily
outstanding balance.
Borrowers will receive a monthly

statement from the bank listing Per­
sonaLine transactions, the outstanding
balance and finance charges. If the line
is unused, there is no finance charge.
A special checkbook register will be
provided containing a payment sched­
ule and a budget guide to help estimate
the impact of the new transaction on
the borrower’s overall monthly income.
The bank emphasized that appli­
cants will be carefully screened. Those
who qualify for the service will receive
counseling in the use of their credit
The lines are intended for long-term
fixed personal debts and not for busi­
ness purposes. They will be reviewed

New Ad Campaign for
Continental Bank, Chicago
“We’ll find a way” is the theme for
Continental Bank’s new image cam­
paign which broke in the June 23
Business Week.
The campaign, created by TathamLaird & Kudner Inc., Chicago ad agen­
cy, features portraits and quotations
of famous American industrialists and
inventors, coupled with Franklin Mc­

Mahon paintings of their concepts and
inventions as they appear in museums
and other contemporary settings.
The first five ads will be based on
Alexander Graham Bell, Charles M.
Schwab, Henry Ford, Thomas Alva
Edison, and Booker T. Washington.
The theme, according to Continen­
tal, underscores the Chicago bank’s
commitment to excellence of service
in meeting the financial needs of its
The Bell advertisement, used in
Business Week, shows tourists viewing
early telephones on display at Green­
field Village in Michigan. The Mc­
Mahon color illustration, which ap­
pears on the left page, provides a
bridge to two columns of black-andwhite headlines and copy on the right
The remaining column on the twopage spread will contain editorial ma­
terial. Continental feels that this col­
umn will increase readership substan­
In addition to Business Week, the
ads will appear in Forbes, Fortune,
Newsweek E, Time B, and The Wall
Street Journal. The Journal ads will
use black-and-white line drawings.

in (lie Irm i if ion o f e x c e lle n c e .
All credit insurance programs are not created equal! So in order for us to continue
to grow, we know we haOe to perform. And we do. We provide service.
Now, “service” is a nice word to banty around — it sounds great.
But when we say service, we mean service . . . and we’d like you to know how good
our service to you really can be. In the tradition of a Mutual of Omaha Company.
After all, a credit insurance program is only as good as the servicing behind it.
So if your credit insurance program isn't doing all you thought it would, write us.
Or call us. Collect. Today.

Hospitdl &Cüsuülty
4 Mil tu,il at Omaha Campami

Dodge at 33rd Street • Omaha, NB 68131 • (402) 342-7600, Ext. 2910
Home Office: P.O. Box 1711 • St. Paul, MN 55111 • (612) 854-4515
N orthw estern


Federal Reserve Bank of St. Louis

19 75



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Guaranty Corporation
826 N. Elm. Box 21567, G reensboro, NC 27420 • (919) 273-6961

Offices: Atlanta, Georgia • Baton Rouge, Louisiana • Bettendorf, Iowa * Dallas, Texas • Denver, Colorado
• Greensboro, North Carolina • Indianapolis, Indiana • Los Angeles, California • New York, New York
• Portland, Oregon • San Juan, Puerto Rico • St. Petersburg, Florida • Honolulu, Hawaii
N o rth w e ste rn
Federal Reserve Bank of St. Louis





BAI Selects Officers for 1975-76
EORGE W. Dennis, CPA, senior
vice president in charge of ad­
ministration in the metropolitan divi­
sion of Manufacturers Hanover Trust
Company, New York, has been elected
chairman of the board of Bank Ad­
ministration Institute, headquartered in
Park Ridge, 111. He is the first BAI of­
ficer to have the title of chairman, fol­
lowing a reorganization of the BAI
board of directors effective July 1.
Mr. Dennis assumed office on that
date, succeeding Horace H. Harrison,
executive vice president, United Vir­
ginia Bankshares, Inc., Richmond, Va.
At the same time, it was announced
that BAT has selected Ronald G.
Burke, 43, as executive vice president.
Mr. Burke is director of Federal Re­
serve Bank operations for the Federal
Reserve System in Washington, D. C.
He will succeed F. Byers Miller, who
last December announced he will retire
as BAI’s chief executive officer on De­
cember 31, 1975, following 19 years
of service. Mr. Burke is expected to
join BAI in September, and assume
full responsibilities for the 9,000 mem­
ber organization on January 1, 1976.
Named to serve with Mr. Dennis as
vice chairman of the board and in line

to succeed him in 1976 is Gerard V.
Carey, CPA, executive vice chairman,
First Pennsylvania Corp., Philadelphia.
Joseph D. Watson, CPA, general audi­
tor of Crocker National Bank, San
Francisco, will serve as national trea­
Several new members of the board
were elected from BAI districts.
Among these was Chester N. Eggen,
president, Richfield Bank & Trust Co.,
Richfield, Minn., who will guide BAI
activities in District 6, which embraces
member banks in Minnesota, Wiscon­
sin, Iowa, South Dakota and North
Elected as state directors for twoyear terms from District 6 area were:
Iowa—Walter A. Schloemer, execu­
tive vice president and cashier, North­
west Bank & Trust Co., Davenport.
Minnesota— Duane C. Gronlund,
vice president and cashier, Northern
City National Bank, Duluth.
North Dakota— Ruben E. Sailer,
vice president and cashier, Bank of
North Dakota, Bismarck.
South Dakota— Donald F. Bertsch,
vice president and cashier, National
Bank of South Dakota, Sioux Falls.

Programs Pay
Specialists in
□ Credit Life Insurance
□ Credit Disability Insurance
□ Personalized Claim Service
□ Sales Training by
Experienced Personnel

More Money in
Your Pocket
1300 North Meacham Road
Schaumburg, Illinois 60172

Credit Insurance Division fo r:

N o rth w e ste rn

Banker, August
Federal Reserve Bank of St. Louis


Wisconsin— Kenneth A.
vice president and cashier, Union
State Bank, West Salem.

Security Corporation Plans
Invitational Golf Tourney
Security Corporation’s 6th Annual
Invitational Golf Tournament is slated
for the Playboy Club at Great Gorge
(McAfee), New Jersey, on October 3,
1975. The annual event, hosted by the
Irvine, Cal., marketer of equipment
and services for financial institutions,
draws bankers and their wives from
across the country to some of the finest
golf courses close-in to the ABA con­
vention cities.
Security’s 6th Annual Invitational
takes place one day prior to the Ameri­
can Bankers Association annual con­
vention in New York City. The George
Fazio-designed Playboy Club course,
chosen by Security’s vice president and
tournament director, Gary J. Griff, will
provide invited guests with a challeng­
ing day of golf amid the spectacularly
beautiful Indian Summer setting of
Northwestern New Jersey’s Vernon
Bankers and their wives will attend
the traditional tournament breakfast
which kicks off the day’s events. Fol­
lowing the full day of golf, tennis and
other activities, Security’s guests will
enjoy this year’s very special awards
dinner when winning bankers will be
presented with thousands of dollars
worth of awards and trophies. Grand
prize, for closest-to-the-pin honors, is
a two-week European Trip for two.
Additionally, any banker who makes
a hole-in-one will be awarded a 1976
Besides honoring the tournament’s
winning golfers, this year’s dinner also
celebrates Security Corporation’s 20th
anniversary as an equipment supplier
to the financial institutions market.
Top name entertainers will round-out
the evening’s activities for Security
Corporation’s guests.
Last year, more than 250 bankers
and their wives enjoyed the Security
Invitational held at the Kuilima Club
on Oahu, Hawaii. The European vaca­
tion grand prize was won by Paul Gandrud, president of Swift County Bank,
Benson, Minn.
Any banker interested in attending
the 6th Annual Security Invitational
Golf Tournament should contact Gary
Griff at Security Corporation, 2055
S.E. Main Street, Irvine, California
92705; phone (714) 979-9000.


The world’s fastest travelers check
First National City Travelers Checks

Roger Penske’s Formula 1 Racing Car is
carrying the First National City Travelers
Checks message around the world. And your
customers will be seeing this car— and the
First National City Travelers Check identifica­
tion— whiz by ... at Grand Prix races in
South America, Europe, Africa, Canada— all


the way to the United States Grand Prix at
Watkins Glen, New York in October, 1975
and throughout the 1976 season.
It’s the biggest new promotion in the
travelers check field. And, it’s one of several
big reasons why you should sell First National
City Travelers Checks.

Best Refund

More Profit

Marketing Program


Issued By

First National City
Travelers Checks are
Number One in the
number of on-the-spot
refund points, world­
wide.Morethan 35,000
authorized on-the-spot
refund agents. That’s
thousands more than
any other travelers
check. The best refund
service in the travelers
check business. That’s
why with our checks,
chances are your cus­
tomers are always
closer to a fast, easy,
on-the-spot refund
than with any other
travelers check.

Among all leading U.S.
travelers checks, you
can’t beat the commis­
sions received for
selling First National
City Travelers Checks.
This means that you
can earn up to 34%
more by selling our
check, than by selling
certain other leading
travelers checks.

First National City
Travelers Check sales
are promoted by a mul­
ti-million dollar mar­
keting and advertising
program . . . including
national magazines,
network television—
and sponsorship of the
most important na­
tional and international
auto racing events.

For 70 years, First
National City Travelers
Checks have had
worldwide acceptance
and recognition with
literally millions of re­
tail and service estab­

It’s nice to know that
you are selling your
customers a travelers
check issued by a
worldwide organization
with the extensive
financial resources of

F irs t N a tio n a l C ity T ravelers C h e c k s . . . You s e ll ! . . . Th ey s e ll!
N o rth w e ste rn
Federal Reserve Bank of St. Louis





4 Fed Presidents To Conduct Seminar
At School of Banking at Wisconsin
A CANDID discussion of workings
of the Federal Open Market
Committee of the Federal Reserve Sys­
tem by four of its members will be one
of the evening seminar highlights at
the forthcoming session of the Gradu­
ate School of Banking at the Univer­
sity of Wisconsin.
The presidents of four Federal Re­
serve Banks, all of whom are members
of the committee on a rotating basis,
will appear at a panel on Monday,
August 11, to discuss current mone­
tary policy. The Open Market Com­
mittee is the credit-policy determining
arm of the Federal Reserve System.
The four presidents are: David P. Eastburn, Philadelphia; Darryl R. Francis,
St. Louis; Bruce K. MacLaury, Minne­
apolis, and Frank Morris, Boston.
The Graduate School of Banking at
the University of Wisconsin, sponsored
by the Central States Conference, will
hold its 31st annual two-week session
on the Madison campus from August
10 through August 23. Attendance at
three two-week sessions, plus the com­
pletion of certain extension problems,
is required for graduation.
Seminar programs scheduled during
the two-week session at Madison are:
Monday, August 11 — Federal Re­
serve Bank Presidents panel.
Tuesday, August 12 — Nancy Teeters,

assistant director of House commit­
tee on the budget,
“The New Budgetary Process.”
Wednesday, August 13 —• Albert
Rees, director, Council on Wage &
Price Stability,
“Wage-Price Policies of the Ameri­
can Economy.”
Thursday, August 14 — Paul Reistrup, president and chief executive
officer, National Railroad Passenger
“The Future of Railroad Passenger
Service in the United States.”
Monday, August 18 — William Proxmire, U. S. Senator from Wisconsin,
“The Work of the Senate Banking
Tuesday, August 19 — Thomas G.
Ayers, president and chairman,
Commonwealth Edison,
“The Energy Picture.”
Wednesday, August 20 — Robert W.
Galvin, chairman of the board and
chief executive officer, Motorola,
Thursday, August 21 — Geòrgie Ann
Geyer, correspondent for Chicago
Daily News.
“A Foreign Correspondent Looks at
the World.”
Approximately 1,600 banks will at­
tend the two-week session of the
Graduate School of Banking. Dr. Don­
ald P. Jacobs, Morrison Professor of

building cost!
That’s not an idle claim. It’s our way of
doing business. We know you don’t need
any surprises at the end of your building
Our specialists study your needs, then
design a building to suit your needs and
your budget. It’s guaranteed.
Call today and find out why so many
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Kirk Gross Co.
PHONE 319/233-6641
N o rth w e ste rn

B anker,

Federal Reserve Bank of St. Louis


Finance and Dean of the Graduate
School of Management, Northwestern
University, Evanston, 111. is the semi­
nar faculty leader.


ABA National Ag Meeting
Slated for November 16-19
The ABA’s 24th National Agricul- ^
tural and Rural Affairs Conference will
be held November 16-19 in Houston
with the theme “Agribanking: Per­
spective, Professionalism, Profits.” Rex
G. Plowman is chairman of the agri- 4
cultural bankers division. The confer­
ence will feature a wide offering of de­
tailed workshops on such topics as
financing young farmers, techniques of
customer counseling, strategies for <
dealing with ag loan risks and uncer­
tainties, and loan quality control.
Mr. Plowman, also president, and „
chairman of Lewiston State Bank in
Lewiston, Utah, said “The popular
Outlook Series on dairy, grains and
seed, cotton and rice, beef cattle, hogs,
energy and the general economy will a
form a central segment of the confer­
First mailing for registrations will
be sent to member ABA banks in Sep­
RMA Plans Fall Convention
Three major aspects of commercial ^
lending— its environment, its priorities,
and its practice—will be the focus of
the 61st annual Fall Conference of
Robert Morris Associates November
2-5 in San Francisco.
RMA— the national association of ,
bank loan and credit officers— has in­
vited a broad range of specialists, in­
cluding bankers, regulators, and pro­
fessionals who influence commercial
lending, to examine this area of bank­
This year’s national conference, 4
hosted by RMA’s northern California
chapter, will be held at the Fairmont
Hotel. About 1,800 members and
spouses are expected to attend. R F.
Dwyer, senior vice president, Wells
Fargo Bank, NA, San Francisco, is
general conference chairman. Presi­
dent of the RMA is Robert A. Young, president, Northwest Bank, Vancou­
ver, Wash., who will give the luncheon
address on opening day.
Keynote speaker at the opening ses­
sion Monday morning, November 3,
will be A. W. Clausen, president of the
Bank of America, San Francisco,
whose topic will be “The Banking En­




The check this proud father is
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BOX 3399, ST PAUL, MN. 55165

Federal Reserve Bank of St. Louis

N o rth w e ste rn

B anker, August

? 975

Which bank gives your clients maximum
m ileage for their short-term money?
We do. Bank, of America. So when your clients tion and spur of-the-minute decision making advice
come to you with short-term money to invest, why as easily as picking up a phone. And working
hours after Wall Street has called it a day.
not do what so many other banks do and come to
It’s all part of why so many bankers look to
us. Bank of America provides a wide variety of
Bank of America to make their short-term money
services, combined with years of professionally
go a long way. If you’d like to find out more, our
proven expertise. And experience like this is more
security specialists will be pleased to fill you in
important than ever in these uncertain times.
on the details. Call Bank of America, Bank Invest­
Our Bank Investment Securities Division
ment Securities Division: San Francisco (415)
offers you and your clients the confidence that
622-2630; Los Angeles (213) 683-3512; New
comes woth trading close to 3 billion dollars in an
(212) 747-5807.
average day. W ith figures th at impressive, we must
be doing something right. Such as keeping our
C o rre s p o n d e n t Bank Service
financial experts available for one-to-one consulta­

Federal Reserve Bank of St. Louis


BMA Plans “Bonanza 7 5 ” for
60th Convention in Las Vegas


k .1»*

T IVING up to its theme of “Bonanza ’75,” the 60th annual conven­
tion of the Bank Marketing Associa­
tion promises “A Gold Mine of Infor­
mation” for all registrants. The con­
vention will be held September 28
through October 1, with headquarters
at the Las Vegas Hilton and Las Vegas
Convention Center in Las Vegas, Nev.
Advance word on the program
states this year’s targets of golden op­
portunities are: Customer Bank Com­
munication Terminals (CBCTs); Indi­
vidual Retirement Accounts (IRAs);
Bicentennial promotions; employee
benefit packages; marketing planning
in the small bank; Social Security di­
rect deposits; marketing to youth, new­
comer and female segments; the con­
sumer and automated clearing houses;
truth in advertising.
These topics will be covered in two
general sessions, six departmental, six
workshops, and smaller rap sessions.
The 60th convention officially gets
underway Sunday, September 28, with
the First Timers’ Orientation and Re­
ception. The opening general session
on Monday at 9:30 a.m. will feature
former Governor Ronald Reagan as
keynoter. The general session on Tues­
day, also at 9:30 a.m., is the time
when 1975 BMA Awards will be pre­
sented—best of TV commercials, best
film, Golden Coin Awards, and chap­
ter and membership recognition. The
third general session at 9:30 a.m. on
Wednesday has Ed McMahon of The
Tonight Show scheduled to discuss the
Anheuser-Busch marketing story.
Federal Reserve Bank of St. Louis

Throughout the three days, the departmentals, workshops and rap ses­
sions will be slated at various times,
affording registrants an opportunity to
visit various segments of the presenta­
tions, frequently by size group of bank.
Departmental are conducted in a
formal atmosphere with speakers using
visual aids. A question and answer
period is planned for the end of each
session. The six departmental will
cover new products, advertising, re­
search, sales development, planning
and public relations/public affairs.
Departmental are scheduled each
morning after the general sessions.
The six workshops are planned each
day for specific bank size categories.
At these meetings, concrete problems
or topics in bank marketing will be dis­
cussed informally, with maximum
audience participation. Workshops are
scheduled for each afternoon at 3:00
p.m. Topics for large banks and com­
munity banks will include such sub­
jects as EFTS, ACHs, direct deposits,
CBCTs, and various marketing mat­
Rap sessions are strictly informal
groups of 30-40 members with com­
mon interests. The discussion leader
initiates the conversation and members
take it from there. Rap sessions will
start with a Continental Breakfast and
also will be divided by large banks and
community banks for greater member
interest and participation. Each rap
session leader will have a starting state­
ment and the ensuing discussion then
is by members present.

The nominating committee earlier
announced its selection of candidates
and members have voted by mail for
their choices. Results of the mail elec­
tion will be announced during the con­
vention. Those nominated are:
President— Eugene J. Callan, New
York Bank for Savings, New York.
1st Vice President— Clifford Y.
Davis, Jr., First Tennessee National
Corp., Memphis.
2nd Vice President— Martin J. Al­
len, Jr., Old Kent Bank & Trust Co.
Grand Rapids, Mich.
Treasurer— Jack W. Whittle, Con­
tinental Bank, Chicago.
The following were nominated for
the board of directors:
Alan Eirinberg, Exchange National
Bank, Chicago.
D. Eugene Fortson, Worthen Bank
& Trust Co., Little Rock, Ark.
Ruth Harrison, Irwin Union Bank
& Trust Co., Columbus, Ind.
Richard F. Langan, Morgan Guar­
anty Trust Co., New York.
Margie H. Muller, Maryland Na­
tional Bank, Baltimore.
James W. Wentling, BancOhio
Corp., Columbus, O.
One of the hallmarks of BMA con­
ventions always has been the educa­
tional exhibits, which will be open for
browsing each day. Monday and Tues­
day evenings are open for individual
planning. The convention will close
Wednesday evening with a reception,
banquet and dinner dance. Music will
be provided by Les Brown and his
Band of Renown.— End
N o rth w e ste rn

Banker, A u g u st



Bank Marketing
In Today's
Senior Vice President
First Hawaiian Bank
Honolulu, Hawaii

. . . delivered at the Montana Bankers
Association Annual Convention

HERE IS, in my opinion, a tre­
mendous misconception as to the
true function of marketing in banking
today. To some extent, there has been
a pendulum movement with the up­
ward swing now compensating exces­
sively for the reverse position when
banks were not involved in marketing
at all.
Definitions of marketing activities
generally emanate from the giant
banks, primarily because they have the
resources for extensive market re­
search and, also, because their markets
are far more complex and, in many
cases, the competition in the areas
served is much more intense than the
average bank of smaller resources.
Consequently, if we are to assume
that the giant banks’ marketing pro­
grams are proper examples, the at­
tempts by the smaller banks to emulate
these programs are basically doomed
to failure.


Value of Human Relationship
Excessive research to minute detail
and hysterical specialization are fre­
quently the major weapons of the mar­
keting programs established by the bil­
lion dollar banks. Lost somewhere in
the scientific approach is the tremen­
N orthw estern

Banker, August
Federal Reserve Bank of St. Louis


dous value of the human relationship
between the bank’s representative and
the customer.
“Death of a Salesman” merited ac­
colades as an outstanding play and as
a motion picture. At the time it was
written by Arthur Miller it proclaimed
the passing of a man and purported to
claim the end of an era. Unfortunately,
it precipitated misunderstanding by
portraying the failure of Willie Loman
as the symbol of the salesman who re­
lied purely on stale jokes, back-slap­
ping and fast conversation. To the ex­
tent that Willie Loman made a crutch
out of affability, this projection was
correct, but by implication it indicted
fluent salesmen who could develop a
human relationship by influencing peo­
ple. In this regard, it became a carica­
ture used for overkill.
As a consequence, we now see in
bank marketing a group of technicians
who have intimate knowledge of the
intricacies of finance but whose per­
sonality traits leave the customers or
prospects with an image of a cold ma­
chine whose talents are grudgingly ac­
cepted but not with a sense of perma­
nence or loyalty. The danger here is
that we are instilling in these financial
experts a feeling that to serve a corpo­
rate treasurer, they must have a superi­
or knowledge more worldly than his.
In a bank of adequate size, this type

of specialization can be produced, but
not necessarily with beneficial results.
Making Friends Is Essential
Dale Carnegie, who was a master
marketer, coined the money making
title “How to Make Friends and Influ­
ence People.” It is interesting to note
that he intertwined these two activities
and in this sense he was remarkably
intuitive. He recognized that the art
of making friends by itself was not the
ultimate and he surmised with equal
perception that in order to influence
people it was necessary to convert the
relationship to one of friendship.
I admire technical perfection in fi­
nance but I abhor the development of
a mechanical approach to business de­
velopment where the total relationship
is based upon financial counseling
(usually accepted unwillingly). I feel
there is still a strong need for the de­
velopment of a warm, human, friendly
relationship that inspires permanence
and loyalty and withstands competi­
If the sole premise on the acquisi­
tion of an account at the corporate
level is that through technical concepts
a treasurer is offered a reduction in
float, it is quite obvious that this rela­
tionship will continue only until a com­
peting technician can offer a greater
reduction in float. On the other hand,

if there is a meaningful human rela­
tionship between the bank representa­
tive and the treasurer, the meager dif­
ferential between earnings on balances
is not enough to overcome the friend­
ship involved.

dise discontent, and this discontent has
continued from generation to genera­
tion, each group vowing it wanted
something better and demanding that
superior products be produced by re­
jecting inferior products. Contrast this
to the ancient European saying of “if
it was good enough for my father, it
is good enough for me.” And so, while
the older nation stood still with the de­
ception of contentment, we in America
progressed by making people dissatis-

only be for customers and prospects
but there should also be a form of in­
ternal marketing where the employees
of the financial institutions are as much
a subject of a sale to the superiority
of his bank as is the customer or pros­
When a marketing man attempts to
convert a prospect into a customer, he
makes a series of promises, but the
question of whether or not these will
be kept is frequently determined by the
behavior of employees in the bank that
become involved.
No bank can grow without the con­
sent of its employees. It is fallacious
to assume that executive ambition is
matched by that of a teller whose total
career at the bank might be no more
than three years.
This means it is essential that the
marketing division and the personnel
division combine to generate a concept
for the motivation of transient employ­
ees. This motivation frequently is in
contrast with employees of ambitions
within the bank because the ambition
itself, along with consequent rewards,
serves as adequate motivation. But the
employee who feels he or she will be
with the bank for only a short time
does not have the same ambition and
cannot be categorized as part of the
long term employee group.

Motivation and Persuasion
We cannot afford to lose sight of the
fact that motivation, understanding of
the behavioral science and the ability
to persuade have been and always will
be essential characteristics of a good
marketing man. He deals with the
motivations of the public and the rela­
. , superiority cannot
tionship of these motivations to the
limited to
commodity he sells or uses is most im­
portant. He needs to know more than service alone but
simply the market facts or the techni­ must be equally
cal information about the service to be
rendered. He has to learn to under­ impregnated with
stand the deeper meaning of the ser­ a close personal
vices he is promoting.
relationship . .
In addition, it is essential that a
good marketing man understand mod­
ern communication and it’s effect on fied with what they had so they would
human behavior.
buy the superior products offered to
Dr. Ernest Dichter has defined them.
"Bridges to the Mind” as specific
Offer Something Better
mechanisms of human motivation
which act as go-betweens from objec­
This is not remote to bank market­
tions to the mental and physological ing because every conversion of a pros­
cogwheels of the human personality. pect or customer who terminates the
relationship with his bank to yours is
The American Story
the consequence of a marketing man
I would like to refer to the bi-cen­ having made him discontent with his
Smaller Bank Approach
tennial celebration of the birth of the existing relationship, but offered some­
It is quite obvious that the degree
U.S. as an example of this contention, thing better. However, the superiority of financial specialization that can be
even though it appears to be distant cannot be limited to service alone but offered by the larger banks in the
from the topic involved. The celebra­ must be equally impregnated with a country cannot be emulated by the
tion of our 200th birthday could well close personal relationship that will in­ smaller banks. However, in view of the
raise the question as to why it is that sure account retention.
difference in the markets, the approach
a nation as young as ours, measured
It is in this connection that market­ of the smaller bank to marketing in to­
in contrast to most European coun­ ing by giant banks can be paralleled day’s competitive environment can be
tries, was able to bring to the world the by marketing at smaller banks. The be­ in the more intimate association with
highest standard of living ever known. havior characteristics of the corporate the problems of a prospect or customer
If we were to search for the single treasurer of a giant conglomerate are and the close cooperation in arriving
common characteristic which exempli­ not different from the behavior char­ at a solution to these problems. In view
fies the unique ability that is American, acteristics of a small businessman with of this, it is even more essential that
we would be hard pressed to find com­ just a few employees. Both individuals the smaller banks recognize the be­
mon traits; however, there is one which remain human beings and have the havioral patterns of the individuals in­
I feel is of great significance.
same human reactions, likes and dis­ volved because there is a greater fre­
All of our ancestors migrated to the likes. Nothing creates a barrier as quency of contact than that enjoyed
U.S. because they were discontent with much as the concept that a man head­ by the larger banks and this leads
what they had. There were those who ing a giant organization is not human eventually to the development of a
felt they were stifled by prohibition in and does not have normal likes and greater intimacy.
Europe and being dissatisfied, they dislikes as well as apprehensions and
Bank marketing in today’s competi­
came to the U.S. Consequently, the on­ gratifications.
tive environment also requires, particu­
ly common characteristic that bound
Therefore, “Bank Marketing in To­ larly for smaller banks, a greater dedi­
immigrants from different countries to­ day’s Competitive Environment” re­ cation to the utilization of the bank’s
gether was the fact that they were here quires more than ever the use not only mental assets as well as its financial as­
because they were dissatisfied.
of technical information of finance but sets. In most instances the bank has
From this there evolved the fantastic an equal perceptiveness in the human
American concept that we do not mer­ relationships that are involved.
chandise contentment but we merchan­
In addition, marketing should not
( Turn to page 78, please)
Federal Reserve Bank of St. Louis

N orthw estern





Family Financial
Education a Success
In High Schools

UYING on credit is relatively easy
in an increasingly “cashless’ so­
ciety. But knowing when — and when
not — to use credit, and knowing how
to distinguish between manageable
debt and overindebtedness isn’t quite
as simple as filling out an application
for a credit card or instalment loan.
That’s why the Lincoln, Neb., Con­
sumer Credit Association started a
pilot “credit workshop” for students
at four high schools in Lincoln’s Public
School District # 1 , and why a similar
project is underway in Rapid City,
S. D.
The Lincoln association’s member
banks, credit associations, retail stores,
and lawyers view the new project, be­
gun last January, as a chance to reach
a group of potential credit consumers
with an educational program that will
teach them how to use credit wisely —
before they go out and unwittingly
plunge themselves into debt over their
“We hope to provide the students
with a basis for making good judg­
ments,” said James D. Robbins, pres­
ident of the association and collection
officer for Lincoln’s First National
Bank and Trust Co.
“Everybody must borrow money at
some time in their life, and young peo­
ple today have little chance to grow up
learning the right way to use credit,”
he added.
Eight Credit Areas
The association’s program focuses
on eight key areas of credit: retail
credit, credit bureaus and their opera­
tion, bankruptcy, services of the Bet­
ter Business Bureau, instalment loans,
bank charge cards, real estate mort­
gages, and the economics of credit.
N o rthw estern Banker, August
Federal Reserve Bank of St. Louis


“When we started thinking about
sponsoring a program in the schools,
we met with teachers to get their ideas
on what information high school stu­
dents needed most,” Mr. Robbins said.
“We came up with a preliminary list
of 20 topics, which we narrowed down
to eight we felt the association was par­
ticularly equipped to handle.”
The association provides speakers
on each topic: representatives from
such association members as local de­
partment stores, local banks and sav­
ings and loan associations, the Lincoln
Better Business Bureau, and local at­
torneys make up a credit “speakers
Several films also are available for
showing to the high school classes.
But the key to the program — and
what gave Mr. Robbins the idea for
the credit education program in the
first place — is the Family Financial
Education Program, a set of student
workbooks and teacher guides devel­
oped in 1970 by Continental Illinois
National Bank and Trust Company of
These printed materials, which take
a learn-by-doing approach, are divided
into two parts: one unit focuses on
basic management of personal income
— checking, savings, and budgeting
— while the second deals with the use
of consumer credit.
“I had received sample copies of the
workbooks some time ago,” Mr. Rob­
bins said, “and they looked like what
we needed. The teachers who helped
us plan our program felt the work­
books were the most comprehensive
of any they had seen on credit.”

The association purchased the work­
books used this past semester, and if
local school officials decide to make
the association’s pilot project a regular
part of high school curriculum, the cost
of the workbooks “probably would be
included in our textbook budget,” said
Buford Jones, the school district’s con­
sultant for business education.
500 Students Enrolled
Mr. Jones said the materials are be­
ing used in elective general business
education, home economics, and mar­
keting and merchandising courses at
the four high schools. About 500 stu­
dents currently are enrolled in classes
taking advantage of the pilot program.
“The program could be expanded
next year,” said Mr. Jones, “by put­
ting more copies of the workbooks into
use, and by encouraging additional
teachers to incorporate consumer cred­
it education into their curriculum.
“We think we’ve been able to make
good use of the workbooks and supple­
mentary speakers and films so far,” he
Mr. Robbins said the consumer
credit association plans to continue
providing local teachers, as well as
civic groups, with lists of speakers on
the topic of consumer credit, regard­
less of what happens to the school pro­
“We know there are a lot of credit
problems,” he said, “and young peo­
ple may have even greater problems
than their parents. Young people have
little chance to grow up with the right
values and judgment if their parents
don’t know how to handle credit. If a
son or daughter can’t learn at home,
we feel a responsibility to provide in­
formation in another setting.”



STUDENTS at East High School in Lincoln, Nebr., receiving instruction on “ Wise Use
of C red it" from Jam es D. Robbins, collection mgr. of consum er lending division at First
National Bank and Tru st Com pany of Lincoln.

In the neighboring state of South
Dakota, juniors and seniors at Rapid
City’s two public high schools will be
learning the basics of personal money
management beginning in the fall,
through this unique educational pro­
gram, sponsored by Rapid City’s four
banks and the Credit Bureau of Rapid
Using the Family Financial Educa­
tion Program, purchased for the
schools by the credit bureau and the
banks, teachers at Central High School
and Stevens High School will be in­
structing students in the principles and
responsibilities of using consumer
credit, handling checking and savings
accounts, making contract purchases,
and obtaining loans.
At the completion of each of the
nine units in the FFEP, speakers sup­
plied by the banks, credit bureau, and
local retailers will review material cov­
ered before the students move on to
another section.
“We’ve done some research into
how the students will receive this kind
of information, and the response has
been almost unanimously favorable,”
said Robert Malone, president of the
credit bureau, who hit upon the idea
for the special project after hearing a
Continental Bank presentation at an
International Consumer Credit Associ­
ation conference.
“Many students in this age group
have never handled their own finances,
and are scared stiff about having a
checking account for the first time, or
buying their first car.
“The response of school administra­
Federal Reserve Bank of St. Louis

tors also has been very positive,” add­
ed Mr. Malone.
With the assistance of Burt Rau, di­
rector of instruction for Rapid City
schools, the credit bureau and partici­
pating banks will conduct an in-ser­
vice, one or two-day teacher workshop
late this summer, to familiarize teach­
ers who will be using the financial edu­
cation program with the student and
teacher workbooks.
The workshop will be taught by rep­
resentatives of the participating banks,
the credit bureau, and local retailers
“who deal with subjects like credit
daily, and can thoroughly explain these
subjects to the teachers,” said Mr.
Instruction will begin in September,
with 200 students enrolled in classes
using the money-management mate­
rials during the first semester.
“We won’t be able to reach all ju­
niors and seniors during this first year,”
said Mr. Malone, “but within a couple
of years, the schools will require that
every student graduating from Central
and Stevens have taken a course built
around this program, and additional
supplementary material and visual
Sponsors of the Rapid City pro­
gram, in addition to Mr. Malone and
the credit bureau, are Charles Undlin,
president, First National Bank of the
Black Hills; Reynold Klay, president,
National Bank of South Dakota;
Dwight M. Guffey, president, Ameri­
can State Bank, and James Berry, se­
nior vice president, United National
Bank. — End

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Our engineers will custom design a
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Daktronics offers entirely solid state
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and temperature information.

BOX 299

PH. 605-692-6145

N orthwestern

Banker, August


NEW information handling technique is helping
small banks in the Upper Midwest take advantage
of large bank computer technology. It helps them to re­

How a City Bank
Shares its Computer
With Community Banks

Marquette Computer Corporation
GARY WOLLAN, Senior Vice President
Marquette National Bank
Minneapolis, Minnesota

NEW SYSTEM for capturing and transm itting local bank tra n s ­
action data on IBM 3 7 4 1 is inspected by Robert L. Ingersoli,
president of M arquette Com puter Services.
N orthw estern Banker, A u g u s t
Federal Reserve Bank of St. Louis


main in the competitive mainstream in terms of manage­
ment, operations and customer services. The new ap­
proach also enables a bank service organization to signifi­
cantly expand its data processing market, while sharply
reducing operating costs for itself and its correspondent
Minneapolis-based Marquette Computer Corporation
has found a better way to bring the benefits of modern
computer-assisted banking to even the smallest bank in the
most remote locale. Last summer, the bank service orga­
nization became the first in the nation to install the high­
speed IBM 3741 data entry system at customer bank loca­
tions to bypass the increasingly expensive courier route
problem. The 3741 unit transmits the local bank’s daily
transaction data directly to Marquette Computer Corpora­
tion’s data processing center, and at electronic speeds.
Management Information
Marquette Computer is a subsidiary of the bank holding
company, Bank Shares, which also owns Marquette Na­
tional Bank. The daily customer transactions of the local
banks using the new system now are processed with com­
parable dispatch and efficiency to those of Marquette Na­
tional Bank. The small bank now is able to offer its cus­
tomers essentially the same major financial services, such
as daily interest compounding, overdraft checking and
high-yield certificates, as larger institutions. Small bank
officers enjoy the same level of sophisticated management
information — daily average balance, loan yield and inter­
est yield reports.
To date, 11 banks in Minnesota, North Dakota and
South Dakota have installed the 3741 units on their
premises. The device captures the bank’s transaction data
and stores it on a “diskette” record.
What Bankers Say
Later, the 3741 is used to transmit the data for process­
ing. Says Marwood Wise, executive vice president of Da­
kota State Bank in Milbank, S.D., a $13 million bank in
a town of 4000 population: “This is what we have been
waiting for. The 3741 assures fast, accurate and economi­
cal collection of our data, while allowing us to keep our
transaction documents in-house where they are readily ac­
cessible, and not subject to loss.”
Edward Buerkle, executive vice president of Farmers
& Merchants State Bank in New York Mills, Minn., a town
of only 800 population, also appreciates being able to re­
tain the bank’s documents on the premises at all times. He
is even more impressed with the vast amounts of time the
new system saves for bank personnel: “We finish up every
day by 4 p.m. — previously, we were often still working
on each day’s transactions as late as 6 p.m. In addition to
the time savings, there are welcome economies in the
elimination of the need for costly posting and coding
Henry Reget, president of the Hamburg (Minn.) State
Bank with $5 million in deposits, is impressed by the new
system’s contribution to his bank's growth potential. “We
are now in a position to absorb additional growth without
hiring new employees, and without additional capital in­
vestment,” he points out.

All three of the local bank executives emphasize the im­
portance of the system’s versatility in handling a variety
of transactions: the daily balancing of all accounts, the
computer-produced exception notices, and management
information reporting.
Advantages of the new data entry method are not re­
stricted to the user banks, however. From an operations
standpoint, perhaps the prime advantage to Marquette
Computer Corporation is that all transaction data from
user banks is now available for processing by about five
o’clock in the afternoon — a time when the bank’s IBM
System/370 Model 145 computer is not as busy. This fa­
cilitates much more efficient utilization of data center re­
sources, and permits a sizeable reduction in data prepara­
tion costs.
On the marketing side, use of the 3741 terminals
broadens the scope of Marquette Computer’s correspon­
dent bank market for its data processing services. The or­
ganization no longer has to be concerned about courier
route structures, or user bank proximity to arterial high­
ways, for example. Plans presently are underway to extend
services to banks as far away as Montana and Iowa. A rule
of thumb is that the correspondent be within a reasonable
rate charge area for the phone lines that link the 3741s
at the local bank to the Marquette data center in Minneap­
How the System Works
Here is how the system works: Periodically during the
day, as customer business is transacted at a user bank
(usually a correspondent of Marquette National Bank),
an operator keys pertinent transaction data into the 3741
terminal. Transactions are grouped for entry by type
(DDA, savings, loan). For the individual transaction, the
operator simply enters the customer account number, the
dollar amount, and the appropriate code.
A control program stored on the 3741 diskette (the me­
dium resembles a 45 rpm phonograph record) guides the
operator through the entry steps. She can see the data she
is entering on the terminal’s small visual display screen.
Any keying error can be quickly corrected, and the ter­
minal will not accept invalid transaction codes or account
numbers. After banking hours and before she goes home
for the day, the operator simply pushes a switch to place
the 3741 unit in the “transmit” mode.
“The terminal is very easy to operate,” says Edward
Buerkle of Farmers & Merchants State Bank. “We have
several employees who are capable of using it. It saves us
a great deal of clerical time and assures data accuracy.
With the 3741, we need only basic proofing equipment and
the savings over even one expensive posting-M ICR encod­
ing unit more than offsets the 3741’s $200 monthly rental
Data Center Calls Banks
Beginning at around four o’clock in the afternoon, the
Marquette Computer Corporation data center dials up
each local bank 3741 terminal, using an auto-call system.
The Marquette computers automatically gather the disk­
ette-stored transaction data. It takes only about three to
five minutes to capture the daily transaction data from
each of the local banks on the system. The incoming data
from all of the user banks is combined at the Marquette
data center on a master transaction tape.
Federal Reserve Bank of St. Louis

The daily transaction data is entered via the tape into
the data center’s System/370 Model 145 computer, The
computer sorts the tape data by transaction type, such as
demand deposit, savings, instalment loans, certificates of
deposit and Christmas Club. It then edits for the validity
of user bank identity codes, transaction codes, account
numbers and transaction amount reasonableness.
Following the edit, the tape data is processed by trans­
action type classification in like manner to the daily trans­
action processing of the Marquette National Bank’s own
customer data. A set of master record files is stored on
magnetic disk for each user bank. They are online to the
computer and all account records are automatically up­
dated during the processing run. As an extra service to
correspondent bank customers, Marquette Computer Cor­
poration secures “not on us” checks from the Minneapolis
Federal Reserve, separates the checks by correspondent
banks by means of an IBM 1419 MICR reader/sorter,
then merges these transactions with the correspondent
bank’s own daily transaction processing.
Computer Produced Reports
For each correspondent bank, the computer produces
all the requested operating statements, exception reports
and management information summaries. These are re­
turned to the local banks before the start of business the
following morning. There is a full trial balance for every
account, covering all classifications, reflecting the total and
individual up-to-date status situation.
The system handles daily interest compounding on sav­
ings accounts, furnishes stop/hold lists and overdraft no­
tices, and provides a variety of exception-type reports to
individual user bank specifications. These include large de­
posit or withdrawal reports, overdraft account histories,
and the like. New account and closed account listings are
routine. The system also produces ready-to-mail customer
account statements on a predetermined cyclical basis.
Local bank officials receive a number of management
reports from the system, again tailored to individual bank
specifications. These summaries, for example, cover aver­
age balance information on demand-deposit and savings
accounts, loan yield and interest yield calculations, loan
delinquency lists by loan dealer and type, rebates on pre­
pay loan calculations, and so on.
System Accessible to All
With this new system, the latest in computer technology
is just as accessible to the small bank in a small town or
rural area as it is to the large metropolitan bank. The small
independent bank now can take full advantage of very ad­
vanced technology and offer its customers the latest in
banking services, without paying the full price to install
it in-house.
Right now, for instance, Marquette Computer Corpo­
ration is planning to implement a Customer Information
File (CIF) system. This computer programming enables
a bank to quickly associate account numbers with individ­
ual customer identities, and vice versa. This, in turn, en­
ables bank officers and employees to deal with an individ­
ual account transaction in terms of the customer’s total re­
lationships with the bank. The objective is to reinforce the
personal touch in bank-customer relationships. When this
important system is implemented, it, too, will be readily
available to the local banks using our services. — End
N orthw estern

B an ker,




Marketing Firms Offer
Special Programs for
Bank Promotions
DENVER advertising firm has
developed a unique variation on
the concept of pre-packaged cam­
paigns for small and medium sized
banks. The program goes beyond the
usual advertising to include marketing,
promotion, and even a community ac­
tion program with a potential for sav­
ing lives.
The package was developed by the
Programmed Marketing Division of
Frye-Sills, Inc., a division of Young
& Rubicam International Inc.
Frye-Sills President Malcolm Sills
said, “PMD gives banks in smaller
communities the total marketing skills,
from creativity through production, of


N orthw estern

B an ker,

Federal Reserve Bank of St. Louis


a full service, major city facility— and
at an affordable cost.”
Available on a protected territorial
basis, PMD includes, as an option, an
opportunity for the bank to take ad­
vantage of limitless public relations
and publicity opportunities by donat­
ing a “Poisindex,” a complete poison
information system, to a local hospital.
Under PMD. the bank also has the
opportunity to participate in the “Offi­
cer Ugg” program, a complete poison
prevention campaign aimed at chil­
The community service option of
the Frye-Sills marketing plan also in­
cludes press releases, newspaper ad-

vertisements, radio announcements,
and othermaterials to publicize the
bank’s involvement.
As part of the
Officer Ugg pro­
gram the bank
can help distrib­
ute colorful “Offi­
cer Ugg” pressure-s e n si t i v e
s t i c k e r s to be
placed on hazard­
ous m a t e r i a l s
throughout t h e
household. T h i s
Officer Ugg
stimulates traffic
through the bank.
The Poisindex is a microfilm infor­
mation reader which enables medical
personnel at the local hospital to iden­
tify and prescribe treatment for any
one of more than 100,000 toxic ma­
terials in less than 30 seconds. Virtual­
ly every consumable product on the
market is included in the index, listed
by brand name, manufacturer, and
Both the Poisindex and Officer Ugg
programs were developed by the internationally-renowned Rocky Mountain
Poison Center at Denver General Hos­
Center Director Dr. Barry H. Rumack said, “As a clinical toxicologist
and pediatrician, as well as prime med­
ical consultant on the creation of Offi­
cer Ugg, I can assure you that he (Of­
ficer Ugg) can become a most reward­
ing symbol against accidental poison­
ing of children in any community.”
According to Family Health maga­
zine, there are more than 700,000 ac­
cidental poisonings each year, 2,500
of them resulting in death, and nearly
250,000 in disabling injuries. 80% of
these accidental poisonings occur in
the home, Family Health reports, and
the largest percentage of victims are
children under five.
Shortly after the Rocky Mountain
Poison Center was established in 1974,
a potential disaster was averted
through use of the Poisindex. Since
then, the Rocky Mountain Poison Cen­
ter has handled more than 18,000 calls
per month from participating hospitals.
The Poisindex and Officer Ugg pro­
grams are just part of the total PMD
package. PMD’s principal thrust is to
market the full range of bank services,
including checking, loans, and where
applicable, trust departments and
drive-up facilities.

Frye-Sills Creative Group Supervi­
sor Bill Talley said, “The PMD ads
deal, in a positive way, with attitudes
in today’s economic situation. We
promise the bank will sit down and
talk with people about their money
problems. Employee training is a big
part of this. Any package we do will
always include employees. The PMD
bank package includes training in both
counseling and cross-selling tech­

Do you want to open
direct deposit accounts
for Senior Citizens?
You can open hundreds of d i r e c t d e p o s i t accounts for Social
Security checks by reaching Senior Citizens directly at their
home addresses.

T ET Uncle Sam Do It,” is the title
^ of an educational and marketing
sound/slide presentation on the sub­
ject of direct deposit of Social Security
and recurring Federal payments now
being distributed by The Graduate
School of Banking at the University
of Wisconsin. The slide show is intend­
ed for banker audiences and is a time­
ly and authoritative review of the op­
portunities for and requirements of
banks choosing to participate in this
new Federal program.
This 25-minute slide show, with cas­
sette tape narration, is divided into
four modules: Orientation, Operation­
al Considerations, Marketing Consid­
erations, and Preparation (how to get
ready). It is possible for any one or
combination of these modules to be
used independently. The presentation
is compatible with and may be supple­
mented by available Treasury mate­
Further information on cost and
availability can be obtained from The
Graduate School of Banking, 122 West
Washington Avenue, Madison, Wis­
consin 53703 (608/256-7021).
TV/f 1DWEST banks looking for firstclass marketing materials to as­
sist them in the Direct Deposit Pro­
gram of the Social Security Adminis­
tration can obtain a complete market­
ing package from Riley Advertising
Co., Omaha. The firm has developed
a 20-minute slide presentation which
reviews the background, benefits and
guidelines for the direct deposit of S.S.
checks. In addition, it provides a stepby-step guide to preparation of Form
1199, the direct deposit authorization
which each customer must complete
and sign. The slide film is accompanied
by a standard cassette tape recording,
programmed for manual or automatic
slide synchronization. It is designed as
a training film for bank personnel, as
well as for showing to customers.
The rest of Riley’s package offers

Here is an opportunity to offer a service designed for people 62 or over. Each month
Senior Citizens in your community receive Social Security, you can
write to them offering a new service where their monthly checks are de­
posited directly to their checking account at your bank.
By having their checks mailed directly to your bank by the U.S. Government and
immediately credited to their checking account, you are offering them convenience
and safety. They are assured of funds being immediately deposited and readily
available. It eliminates check cashing problems and provides uninterrupted depos­
its. It reduces operating costs and generates increased deposits, new depositors,
and improved customer relations.
There are 21.3 million people 62 or older who receive Social Security benefits. In
the University of Michigan Institute for Social Research 1971-72 Survey of Con­
sumers revealed this market segment have h i g h s a v i n g s p o t e n t i a l and a h i g h d e g r e e
o f l o y a l t y . [63% maintained accounts for 10 or more years/38% had accounts of
$5,000 or more.]
To help you to promote a d i r e c t d e p o s i t Program to the Senior Citizens in your com­
munity, we can provide a current mailing list of the names and addresses of elderly
married couples, widows and single persons over-62 on personally-addressed
gummed mailing labels in zip numerical sequence that you can readily affix to your
envelopes, at the rate of $40.00 per thousand names for one-time use.
Once you select the cities and towns in your service area and send us your order,
we will air mail your Senior Citizen mailing list on gummed labels in two weeks.

Most important are assured of a 60-day exclusive of the Senior Citizen bank­
ing market in your service area, so you can secure the greatest number of Senior
Citizens d i r e c t d e p o s i t accounts.

Contact us direct or mail the coupon below:

Please send information on your 1975 Senior Citizen list for the following cities/
towns/zip codes:










City ....








___ State




Call (914) 632-1595 or 779-8585

SENIOR CITIZENS.u n l im it e d
273 Columbus Avenue, Tuckahoe, N. Y. 10707

N o rth w e ste rn
Federal Reserve Bank of St. Louis

h a n k e r, A u g u st

19 7 5

NEW Bicentennial envelope,
featuring mural-like four-color il­
lustrations of historical events, dis­
played across the back panel and seal
flap, has been introduced by Tension
Envelope Corp., Kansas City, Mo. The
pre-printed envelopes are ideal vehicles
for organizations to participate in the
upcoming Bicentennial.
The envelope face has a small Bi­
centennial emblem, which allows plen­
ty of room for imprinting company
logos, return address, slogans, and
other copy to the buyer’s specifications.
In addition to the four-color Bicen­
tennial envelope, Tension has created
a series of special Bicentennial design
elements that can be used in the devel­
opment of custom envelopes. A variety
of styles is available for use on front
or back panels, on seal flaps, or as artlining inside the envelopes.
The pre-printed four-color enve­
lopes are available in size 10, either
with or without address window. The
design elements can be incorporated
on envelopes of any size or style. For
details, write: Tension Envelope
Corp., Suite 327, 19th & Campbell
Streets, Kansas City, MO 64108.


ART WORK from Riley Advertising m aterials illustrates the m onths when direct deposit
of Social Security paym ents goes into effect in different parts of the country.

materials to advertise the direct deposit
program to customers of financial insti­
tutions. These include pressure-sensi­
tive advertising labels of various kinds,
statement enclosures, plastic counter
display cards and teller badges.
The high quality sound, slide film
was produced for Riley by Sight &
Sound, Inc., Omaha, the same firm

which produced EFT films for the Ne­
braska Bankers Association and more
recently produced “Let Sam Do It,”
the direct deposit movie made for the
Central States Conference. The film
marketed by Riley is designed to com­
plement “Let Sam Do It,” if a bank
or association wishes to show them in
conjunction with each other.

1776 C ^ T ~ c llT flS 5 iA l


7 2 ................................ $2.00
1 4 4 .............................. $1.75
2 8 8 ..............................$1.65
4 3 2 ..............................$1.60
1 0 0 8 ........................... $1.50


See Us at
Booth 810
Bank Marketing
Las Vegas

Some Territory Open For Representatives

N orthw estern

Banker, August
Federal Reserve Bank of St. Louis





^iùalify Incentives

1305 U.S. 31 South, P.O. Box 700, Hartselle, Ala. 35640
Phone 205-773-4161 or 205-773-4595

IN C .


Log Cabin Banks

Bank Ad Wins Eagle Award

By5£Q\\illyour money
have done
a dayswork too;
Make money with your money.
Open a MatchMaker Account. Today.

EMPLOYEES and residents of the Lurleen
B. W allace D evelopm ental Center, a Hartselle, Ala., institution fo r the handicapped,
have been aw arded a contract to assem ­
ble and package 1 0 0 ,0 0 0 coin bank rep­
licas of the Lincoln log cabin by Quality
Inventives, a local advertising novelties
dealer. The banks, which will be m arketed
nationally as m em entos of the Bicenten­
nial celebration, will be assem bled in the
Sheltered Workshop a t the W allace Cen­


LaSalle at Washington/LaSalle at Wacker 60690/Phone (312) 661-5000/Memher FDIC

TOP HONORS in the outdoor category during the recent Chicago Finan­
cial Advertisers Eagle Awards com petition w ere won by Am erican N atio n ­
al Bank and Trust Com pany of Chicago. The bank and its agency, Lee
King & Partners, Inc., received the Eagle Award fo r th e ir outdoor/'transit
advertisem ent entitled “ By 5 :0 0 Will Your Money Have Done a Day’s
Work Too?” The cam paign is running currently in the Chicagoland area.

Bank Planning Conference Announced
HE SECOND Conference on Plan­
ning and Execution of Policy in
small and medium-sized banks will be
conducted October 12-15, 1975, at
Tan-Tar-A, Lake of the Ozarks, Osage
Beach, Mo. The Conference is spon­
sored by the Foundation of the South­
western Graduate School of Banking.
Don Carlson, president of Elmhurst
National Bank in Elmhurst, 111., and
past-president of the Independent
Bankers Association of America, will
be the director of the Conference. Dr.
George H. Hempel, professor of fi­
nance, Graduate School of Business,
Washington University, St. Louis, Mo.,
will be the co-director. The Confer­
ence is the second on planning spon­
sored by the Foundation. The first, held
at the Greenbrier in March, 1975, was
attended by bankers from 21 states.
Bank presidents, other senior offi­
cers and selected directors are invited
to attend. The Conference is designed
for banks with resources as small as
$10 million and as large as $250 mil­
lion. Topics to be covered include:
Planning Strategy and Executive Con­
trol of Growth, Expenses and Profits;
Manpower Development for Growth
and Continuity; Planning the Banking
House, including Site Selection, Facili­
ty Sizing, and Financing; and Schedul­
ing Capital Requirements, Valuation

of Bank Stock, and Marketing of Bank
Reservations for 200 conferees have
been secured at Tan-Tar-A, and at­
tendance will be limited to that num­
ber. Nineteen faculty members will
serve the Conference.
A Planning Guide to be used in the
laboratories of the Conference has been
prepared which also should be useful
to banks in their planning. Dr. Richard
B. Johnson, president of the Founda­
tion of the Southwestern Graduate
School of Banking, in describing the
Conferences, stated that their objective
will be to give the senior bank officer
the capability of designing a program
which can be utilized in his bank with­

out calling on an outside consultant or
utilizing a computer. Banks are advised
to send no more than two officers to a
Conference. Spouses are invited to ac­
company registrants, and will be in­
cluded in the social program of the
Conference. The conference proceed­
ings as well, as the Planning Guide, and
additional selected materials will be
published and provided all registrants.
Further information concerning the
Conference can be obtained by writing
Dr. Richard B. Johnson, president,
The Foundation of the Southwestern
Graduate School of Banking, SMU
Box 1319, Dallas, Texas 75275; or call
A /C 214/692-2996.

503 17 AVE. N.W . ROCH., MN. 55901 CALL COLLECT 507-288-6580
N o rth w e s t e r n
Federal Reserve Bank of St. Louis

B a n k e r, A v g u st




of Factoring

(Editor’s Note: This article was pre­
pared by the author to explain the de­
tails of factoring for attorneys. Because
it explains clearly the part played by
factoring firms and banks in aiding
commercial clients, the article is pre­
sented for the benefit of our readers.)

James Talcott Factors
New York, N. Y.
N orthw estern

B an ker,

Federal Reserve Bank of St. Louis


has been around for
over 150 years. It has kept one of
the country’s largest industries afloat.
And to thousands of businessmen it
has literally meant the difference be­
tween success and failure.
And yet to a great number of at­
torneys in the United States, factoring
is a dirty word. Mention factoring to
many attorneys and they’ll probably
say “That’s for somebody going un­
der,” or talk about exorbitant interest
on loans, or people coming in and tak­
ing over a client’s business.
Factoring, a Unique Tool
The fact is they are dead wrong.
Factoring is a unique business tool
involved with the lifeblood of any com­
pany: credit protection and cash flow
— the two areas that are high stakes
in normal business situations, and
could mean a business’ life or death
in today’s economy. Not only do fac­
tors provide credit guarantees, but they
are a source of unsecured, fast financ­
ing; modern, computerized bookkeep­
ing and collection; market forecasts
and evaluations, and an array of man­
agement information, sales and mar­
keting counseling. And, through fac­
toring’s total services, a company can­

not only alleviate business problems,
but grow.
Why all the mystery about factor­
ing? It has a lot to do with the con­
centration of this service in the textile
business for the past 100 years. Be­
cause of this, many attorneys have had
little contact with the service and,
worse, have succumbed to the myth­
ology surrounding factoring.
Things are changing. Today, at­
torneys faced with helping clients cope
with the enormous burdens of inflation
and declining profits are looking be­
yond traditional financing sources for
help. And when they take a hard look
at factoring they’re discovering what
the textile industry has known for a
long time, that factoring is a very spe­
cial business tool that is unavailable
anywhere else.
For attorneys who have not taken
that hard look at factoring or still think
of it as a dirty word, it’s time to learn
some basics about the business. At the
very least, it will provide clients with
an option to present financial re­
sources; at the most, a way out of diffi­
cult, and possibly traumatic business
Dispelling Some Myths
First off, let’s dispel some myths.
Factors are not loan sharks, company
acquisition mills, or “shady operators.”
Factoring is a $16 billion a year indus­
try practiced by many of the largest
private finance corporations and
banks. All factors offer a simple basic
service. They guarantee businessmen’s
credit by purchasing their accounts re­
ceivables, and make available ad­
vances, not loans, on the receivables
to ease cash flow. Talcott, as well as
other major factors, also offers credit
checking, bookkeeping and collection
services. And one final point. Factors
are interested in taking on a “down
and out” client.
Now that we’ve dealt with myths,
let’s get on to reality. To size up the
impact a factor can have on your
client’s business, certain key questions
must be answered. Questions like: Is
factoring right for your client’s par­
ticular situation? What does it really
cost? Can he justify the service? What
types of factoring plans are there?
Which are best for him? And finally,
how to choose a factor.
Ask These Key Questions
To determine your client’s need for
a factor’s help, ask yourself the fol­

• Does your client’s credit depart­
ment have sufficient expertise to make
proper judgments in today’s complex
• Have credit exposures reached
the point where if one or more of your
client’s customers failed would profits
and capital be seriously impaired?
• Have customers’ late payments
and insistence on extending terms put
a heavy strain on working capital?
• Is the cost of executive talent
making credit decisions causing neglect
in other important business areas?
If the answer to many of these ques­
tions is “yes,” then a factor can be of
great assistance, providing of course
that your client can afford the service.
A Look at Costs
In looking at a factor’s costs, sev­
eral things have to be considered —
the total range of factoring services,
the degree of risk assumed by the fac­
tor, what your client can accomplish
with the funds, and what he will lose
without them.
For receivable bookkeeping, collec­
tion and assumption of credit risks, the
factor’s fee amounts to a single dis­
count ( 3A —• F / 2 % ) of the net re­
ceivables purchased. This fee is based
on volume of sales, average character
of customers, terms of sales, and aver­
age size of invoice unit. Interest for re­
ceivables advances or short-term sea­
sonal loans is usually at a rate slightly
higher than prevailing bank rates. In­
ventory and long term loans unse­
cured or secured by mortgages on
plants and equipment are slightly high­
Once factors’ costs are defined, com­
pare them to the cost of your client’s
credit operation. The following sched­
ule can be used to calculate this:
a. People
b. Bad debt, credit history
c. Credit agency report
d. Cost of monthly
statements, collection
forms, postage, mailing
e. Telephone expense
a. People — Salaries plus
b. Equipment
c. Space utilized

_______ .

_____ .__

Four Basie Plans
If your client’s financial problems
point towards factoring as a possible
solution, and he can afford the service,
then the next step is to decide which
factoring plan is best, a decision which
Talcott and most factors can help you
make by evaluating your client’s busi­
ness needs.
Most factors offer several basic
1. In notification or conventional
factoring, the factor buys your client’s
receivables for cash, if desired, and un­
dertakes credit checking, receivables
bookkeeping and collection on a fee
basis. The factor’s credit department
checks credit on orders, and when the
orders are shipped, the factor pur­
chases the sales invoices. These will
tell your client’s customers that bills are
due and payable to the factor. If, for
any financial reason, any of your
client’s customers can’t pay, it’s the
factor’s problem not his. Your client
receives payment from the factor on the
due date of the receivables; if advances
are required, the factor will make them
as necessary. These are not considered
as a liability or a loan, but simply an
advance on monies due at a later date,
2. Maturity factoring differs from
the conventional plan in that the fac­
tor pays your client on the maturity
dates of the receivables whether his
customers do or do not pay promptly.
He still receives all credit guarantees,
receivables bookkeeping, and collec­
tion service benefits, and can continue
to borrow normally unsecured money
from his bank.
3. Non-notification factoring is pri­
marily for manufacturers and whole­
salers who sell mostly to retail outlets.
As in other factoring agreements, the
factor purchases accounts receivable
outright and guarantees credit on ship­
ments. But your client’s customers are
not notified, and he assumes his own
receivables bookkeeping and collection
functions. The fee for this type of fac­
toring is usually lower than conven­
tional factoring arrangements.
4. An Export-Import factoring plan
is offered for clients involved in foreign
trade by Talcott, as well as other fac­
tors. Under this plan, the factor not
only assumes all of the credit risk, but

also covers currency and political risk.
The service includes establishment of
letters of credit, trust receipt interim
financing, bonded warehouse loans,
making advances for import duties and
freight, complete with factoring of re­
sultant receivables.
Checklist on Factors
Knowing what factoring can and
cannot do for your client is, of course,
vital. But picking the right factor for
the job is equally important. Factoring
is a highly personalized business. A
factor maintains close contact with
your client, his customers, and mar­
kets. If the factor’s full range of ser­
vices are taken advantage of, he can
become a valuable financial counselor.
This kind of involvement demands
serious thought.
How do you help your client de­
cide? As a start, don’t rely on hearsay.
After all that’s how factoring got to be
a dirty word. Factors come in all
shapes and sizes. And, like any busi­
ness, there are good and bad ones.
What’s needed is an assessment of
the pluses and minuses of factors. To
help out, here’s a checklist of areas to
look into:
* Financial Backing: The factor
should have sufficient financing to
meet your client’s needs.
* People: The best factor for your
client is one who has people who are
experts in his business, customers and
markets, and flexible enough to adjust
to situations that don’t fit neatly into
a set plan.
* Service: Since your client will be
working closely with the factor, he
should pick one that is close enough
to respond quickly to his needs and is
familiar with the region in which he
* Facilities: The heart and soul of
factoring is credit checking. Make sure
a factor has the most modern credit
analysis systems, and professional
bookkeeping and collection capabili­
Once armed with the facts and
figures, you should be able to help
your client make a choice. The field
is large and on the whole made up by
professionals who value their industry,
understand its importance and the
role they can play in helping other
businessmen. And, above all, it is
made up by people who have a special
interest in seeing a “dirty word” be­
come part of the vocabulary of top
level financial management. — End
N orthw estern
Federal Reserve Bank of St. Louis

B an ker,




"A man’s got to get some mud on his boots
before he’s any use out here.”


l h e city is th e city.
T h e country is th e country.
T h a t’s a difference w e’ve always
appreciated at A m erican N atio n al.
A n d so we offer our correspond
dents several unusual services
specially developed to m eet the
needs of banks outside th e big city. |
For exam ple, we have an
au to m ated bond acco u n tin g service 1
th a t can stream line your in v estm en t
pricing, and th e acco u n tin g on your
w hole in v estm en t portfolio.

A n d we can offer you a w hole range of
m anagem ent tools, from expense reporting
systems to em ployee benefit programs.
W e’ve also staffed our corre­
sp o n d en t d e p a rtm e n t w ith m en who
know th e country.
O n e of them is W arner
Frohm an. Before he got into
banking, he ran his ow n farm and
c a ttle operation.
A n d we hope you’ll call him ,
th e n e x t tim e you need som ething
from a hig-city bank.

LaSalle at Washington/LaSalle at Wacker 60690/Phone (312) 661-5000/Member FDIC

N orthwestern


Federal Reserve Bank of St. Louis


counting and James W. Iversen to di­
rector of auditing. Mr. Martin joined
the bank service firm in December of
1973 and Mr. Iversen in September
of 1974. Mr. Iversen previously had
been cashier at University National
Bank in Chicago.




P r e s id e n t

R o n to u l

R O B ER T C. SC H R IM P LE E x e c . V . P. C h ic a g o



Named To Head New
Security Bank, Sandwich
John E. Behrens has been named
chief executive officer of the new First
Security Bank of
S a n d w i c h . He
f o r m e r l y was
cashier of the
Yorkville Nation­
al Bank.
Construction re­
cently began on
the new b a n k
which will be lo­
cated adjacent to
the Indian Springs
Shopping Center in . 5,500 square foot
Elected at Oak Park
Donald C. Henderson has been
elected to the board of Oak Park Trust
and Savings Bank
and its p a r e n t
company, the Oak
P a r k Bancorp.,
Inc., according to
Wallace Austin,
bank chairman.
Mr. Henderson
joined the bank in
1950 and is a
senior vice presiQ c HENDERSON
d e n t , corporate
secretary and senior lending officer.
Harvey Bank Sponsors
Bicentennial TV Series
The First National Bank of Harvey,
through its membership in the Ameri­
can Bankers Association, is co-spon­
soring a special series of “NBC Today”
shows in tribute to the U. S. Bicen­
tennial, according to Donald G. King,
bank president. The series began on
July 4 and will continue for 52 weeks.
Joins Decatur Bank
Richard D. Minick has joined the
Soy Capital Bank and Trust Company,
Decatur, as administrative assistant,
according to E. J. Arseneault, bank

president. Mr. Minick attended the
University of Illinois, Millikin Univer­
sity and received his Master of Arts
degree in mathematics at Eastern Illi­
nois University last May.

Elected at Des Plaines
Egils H. Krolls has been elected vice
president and trust officer of the First
National Bank, of
Des Plaines, ac­
cording to Arthur
R. Weiss, bank
Mr. K r o l l s ,
formerly assistant
vice president and
trust o f f i c e r ,
joined the bank’s
trust department
E. H . K R O L L S
in 1969. He is a
graduate of Northern Illinois University
in DeKalb and holds a juris doctor de­
gree from The John Marshall Law
First Ogden Corporation
Announces Promotions
First Ogden Corporation, Naper­
ville, has announced the promotions
of Robert W. Martin to director of ac-

Named at Oak Park
William R. Langley, president of
Oak Park Trust and Savings Bank, has
announced the appointment of Frances
J. Chuey to marketing officer.
Miss Chuey joined the bank in 1973
as administrative assistant to the vice
president of marketing. She formerly
was on the marketing staff at Financial
Technology, Inc. Ms. Chuey is a
graduate of Western Illinois University.
Michigan Ave. Facility

SHOW N is th e new walk-in drive-in facility
of The M ichigan Avenue N a t'I Bank o f Chi­
cago a t 7 2 E. Randolph opened recently.

ARCHITECT'S sketch of the new Elm hurst National Bank drive-in facility.

Elmhurst Nat’I Opens Drive-Up Facility

LMHURST National Bank recently held an opening celebra­
tion for its new drive-up facility.
The structure has two upper levels
and a sub level which provide more
than 8,100 square feet of service area.
Conference and meeting rooms are be­

ing planned for the second level.
Six arched drive-up lanes feature an
extensive canopy to shelter “in-car”
depositors against inclement weather.
Also included are six indoor teller
walk-up windows, depository stations,
kiosks and security areas.
N orthwestern
Federal Reserve Bank of St. Louis

B an ker,


Federal Reserve Bank of St. Louis

W ill your teller
jeopardize this $70,000
He:s one of your best customers. A man
with a $10,000 secured loan, a $55,000
commercial mortgage and a $5,000 home
improvement loan.
But when he comes in to buy travelers
cheques, does your teller sell him just the
run-of-the-mill brand?
If so, your best customer’s chances for a
trouble-free trip may be jeopardized.
Your teller should recommend American
Express® Travelers Cheques. They are the
world’s No. 1 cheque. A nd for good reason.

ary or representative offices around the world.
You can assure your best customers of a
source of emergency funds should the original
amount purchased prove to be insufficient.
Help keep your best customers your best
customers. To make certain your tellers are
aware of the advantages of American Express
Travelers Cheques, clip out the box below
and send it to your head teller for distribution.
After all, good customers are hard to find.

1. Am erican Express Travelers Cheques
are good at more hotels, more restaurants,
more retail shops and more gas stations across
America than any other travelers cheques.

2. American Express Travelers Cheques
are supported across America by an
“Emergency Refund”5""system that never closes*
Never. (Some travelers cheques’ refund
systems can be closed as many as 120 days
a year. T h at’s about a third of the time.)

3. Am erican Express Travelers Cheques
are supported by a network of travel offices
around the world. They can come to the aid of
your customer should a problem ever develop.
4. Am erican Express Travelers Cheques
Courtesy Card offers your best customers a
very special advantage. Issued by one of your
officers, this card enables your customers to
cash personal checks up to $250 for the pur­
chase of American Express Travelers Cheques
at most American Express Company, subsidi­

Attention Tellers
• A m erican Express Tavelers Cheques are good
at thousands of hotels, restaurants, gas stations
and retail shops across Am erica where other
travelers cheques aren’t.
• A m erican Express Travelers Cheques are the
only Travelers Cheques backed by a refund system
that never closes.
• A m erican Express Travelers Cheques are sup­
ported by travel offices around
the world.
• Last year more travelers
used A m erican Express
Travelers Cheques than any
other. They are the world’s
leading Travelers Cheque.
i----------------------------------------------------------------------- 1
Only American Express Travelers Cheques can provide your customers
extra service. Across America emergency refunds
of up to $100 are available at night, on weekends and holidays.

American Express Travelers Cheques

American Express Company
Federal Reserve Bank of St. Louis


Can George, Tom and Dick
make you an even better advisor?
Your customers count on your good counsel, because
you know what’s good for business in your area.
What works. And what doesn’t.
But say a particularly complex financial issue
comes up. Like whether to build a new plant, a twist in
tax laws, or business valuing.
That may be the time to call Correspondent
Banker George Palmer, Tom Hayden or Dick Storlie.
And ask them to put you in touch with a specialist in

our Business Advisory Division.
That way, you can bring added expertise to
bear on. just the kind of problem you’re facing. To
help you probe it. Sort it out. Analyze it. And recom­
mend solutions.
Whenever your customer could use some added
counsel, remember the specialized business ad­
visory staff you have ready on call. Through George,
Tom and Dick. At (612) 372-8123.

We take your business personally.
Helping you change things for the better.

National Bank
Of Minneapolis
N orthwestern

Banker, A ugust
Federal Reserve Bank of St. Louis



Farmers State Corporation, Mountain
Lake, to become a bank holding com­
pany through the acquisition of
Farmers State Bank of Mountain Lake
and to engage in permissible insurance
agency activities.




P re s id e n t

E x e c . V .P ,

Robert j, Zavoral
Funeral services were held recently
for Robert J. Zavoral, 60, president
of the St. Clair State Bank.

R o c h e s te r

M in n e a p o lis

the First Hennepin State Bank as as­
Duluth Bank Names President
Dennis W. Dunne, vice president of sistant vice president in charge of mar­
Northwest Bancorporation, has been keting. Mrs. Brockhoff has been with
elected president
the bank since 1960.
of the First Na­
Security State of Sebeka
tional Bank of
Moves to New Quarters
Mr .
The Security State Bank of Sebeka
Dunne succeeds
recently moved into its new quarters
Chester C. Lind
and held an open house. Features in­
who has b e e n
three private offices, lobby with
elected executive
blue and gold carpeting, new teller sta­
vice president of
tions, and large window area.
Bancorporation. The
D. W . D U N N E
To Head Northfield Bank
appointments be­
Harry A. Shearer has been elected
come effective September 1.
president of the Northfield National
Mr. Dunne began his banking career
Bank succeeding
in 1946 at the Northwestern National
William L. Con­
Bank of Minneapolis while attending
nelly who is now
the University of Minnesota. Upon
president of the
graduation he was employed by North­
Red River Na­
west Bancorporation and Banco affili­
tional Bank and
ates, Northwestern National Bank of
Trust Company of
Great Falls, Mont., and First National
Bank, Billings, Mont. In 1958 he
N. D.
joined the First National Bank of
Mr. Shearer be­
Winona as a vice president and director
gan his banking
and in 1962 the Northwest Bancorpo­
c a r e e r at the
ration with responsibilities in public
Southside National Bank of Missoula,
affairs and planning.
Mont., in 1962. He was elected assis­
tant cashier and tiinepay department
manager in 1966 and assistant vice
First Robbinsdale State
president in 1969. In 1971 he joined
Elects New Officers
the First Bank System, Inc. Most re­
First Robbinsdale State Bank has
cently Mr. Shearer was president of the
elected Howard J. Groenke vice presi­
First State Bank of Babbitt.
dent and cashier, and Mary A. Brock-

Application Approved
The Federal Reserve has announced
its approval of the applications of

First State, Litchfield,
Plans New Facility
The First State Bank of Litchfield
has announced plans to construct a fa­
cility at Third Street and North Ram­
sey. The proposed facility would in­
clude up to four drive-up lanes and
two walk-up windows, according to
Les Herzog, bank president.
Richfield Banker Named
BAI District Director
Chester N. Eggen, president of the
Richfield Bank & Trust Co., has been
named a district
director of Bank
JÉ ' f
Administration In­
banking organiza­
tion headquartered
in Park Ridge,

In his new post,
Mr. Eggen will
\ y/ '
work with state
directors and local
chapter officers coordinating the asso­
ciation’s membership activities in dis­
trict 6 which includes banks in Minne­
sota, Wisconsin, Iowa, South Dakota
and North Dakota. He also will serve
on the Institute’s 31-member board of

Promoted at Hector
Cheryl L, Pederson has been pro­
moted to assistant cashier at the Se­
curity State Bank of Hector. Roger
Newman has joined the bank’s staff.

Minnesota Group Meetings Set
H. J . G R O E N K E

M. B R O C K H O F F

hoff assistant cashier, according to
Kenneth C. Sheehan, president.
Mr. Groenke, who has served as
cashier since 1970, joined the bank in
1953. From 1967 to 1970 he was with




Germain Hotel, St. Cloud
Holiday Inn, Eveleth
Holiday Inn, Moorhead
Ramada Inn, Marshall
Majestic Oaks, Anoka
Orchid Inn, Sleepy Eye
Holiday Inn, Rochester
N o rth w e s te rn
Federal Reserve Bank of St. Louis

Banker, A u g u s t



National Bank of Min­
neapolis has announced major
changes in the executive staff.
John P. Knutson, president and chief
executive officer has been elected chair-



man of the board and chief executive
officer. Harry C. Benson, Jr., senior
vice president of Northwestern Nation­
al Bank of Minneapolis, has been
elected president of Midland National
Bank of Minneapolis. These executive
changes are effective October, 1975.
Ernest C. Pierson, group vice presi­
dent, Midland National Bank, has been
advanced to ex­
ecutive vice presi­
dent of Midland
July 15, 1975.
At a special
shareholders meet­
ing July 14, both
Mr. Benson and
Mr. Pierson were
e l e c t e d to the
Midland National
Bank board of directors.
Mr. Knutson began his banking ca­
reer by joining Midland in 1930 after
graduation from Edison High School in
Minneapolis. He served in many areas
of the bank with various officer posi­
tions, was advanced to executive vice
president in 1969 and was elected
president in 1970. He became the
bank’s chief executive officer on Janu­
ary 1, 1972.
Mr. Benson began his banking ca­
reer at the Midland National Bank in
N orthw estern


Federal Reserve Bank of St. Louis


divisions. He is a director of the Jacob
Schmidt Company and the American
National Bank.
Mr. Nash is general chairman of the
1975 St. Paul United Way Campaign,
general chairman of the 1975 National
Conference of Christians and Jews, a
trustee of St. Paul Foundation, and a
commissioner of the Port Authority of
the City of St. Paul.
First National Bank of Minneapolis
has announced the addition of three
new o f f i c e r s :
Thomas C. Mar­
tin, assistant vice
president in the
human resources
Thomas T. Rusk,
trust officer, prop­
erty management
department; and
Robert M. Ferris,
Jr., marketing of­
ficer, marketing services department.
Mr. Martin for the past four years
has been personnel manager in the
Minneapolis regional office of Em­
ployers Insurance of Wausau, Wis.
Mr. Rusk joins the bank to head a
new farm management division. For
the past five years he has been farm
loan officer with the Irwin Union Bank
and Trust Company, Columbus, Ohio.
continues as chairman of the board and
Mr. Ferris has been a marketing re­
chief executive officer. Mr. Nash an­ search analyst at First Computer Cor­
nounced his intent to request an early poration since 1973, and also is an as­
retirement effective August 31, 1976.
sistant professor of marketing at the
Mr. Reagan joined the bank as as­ University of Minnesota.
sistant vice president in 1962 after hav­
ing been comptroller of the Cryovac
Division of W. R. Grace Company. In
June, 1965, he became vice president
of commercial loans and in January,
1966, was appointed division head and
assumed authority for the overall com­
mercial loan function. In December,
1971, Mr. Reagan was promoted to ex­
ecutive vice president and at that time
was assigned responsibility for several

1940. After serving in various depart­
ments and capacities for 26 years, he
was elected vice president of business
development. In 1967 he joined the
Northwestern National Bank of Minne­
apolis as a vice president, national ac­
counts; served from 1969 to 1973 as
vice president-division head, national
accounts, and since 1974 has been
senior vice president, commercial bank­
Mr. Pierson joined Midland National
in 1965 as an assistant vice president.
In 1972, he was elected a group vice
president and in 1973 assumed chair­
manship of the officers’ loan commit­
H* H
At their July 15 meeting, directors
of the American National Bank and
Trust Company of St. Paul elected
Janies W. Reagan as president, effec­
tive November 1, 1975. John F. Nash


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N orthw estern
Federal Reserve Bank of St. Louis

Banker, August



Minnesota News

Clarence A. Adams, president, Ban­
co Financial Corporation, has an­
nounced three additions to the staff.
Elected accounting officer is Robert
L. Johnson. Mark G. Anderson and
Charles P. Bloome were appointed
* * *
Chester C. Lind and Walter C.
Johnson have been elected executive
vice presidents of Northwest Bancorporation effective September 1, 1975.
Also announced was the creation of
an executive office to consist of Henry
T. Rutledge, Banco chairman; Richard
H. Vaughan, president; John A.

C. C. U N D

W . C. J O H N S O N

Sweeney, senior vice president, and the
newly named executive vice presidents.
Mr. Lind, 56, is currently president
of the First National Bank of Duluth,
a Banco affiliate. Fie began his banking
career in the Mobridge branch of the
First National Bank of Aberdeen in
1935 and was elected president of that
bank in 1954 before moving to Duluth
in 1966. Fie attended the University
of South Dakota and is a past mem­
ber of the Federal Reserve Advisory
Council representing the Ninth Federal
Reserve District.
Mr. Johnson, 49, has been with
Banco since 1957 and is currently
senior vice president for administra­
tion and finance. A certified public
accountant, he was with Peat, Mar-

wick, Mitchell & Company, before
joining Banco. Mr. Johnson, a Min­
neapolis native, is a graduate of the
University of Minnesota.
Also announced was the election of
Donn L. Waage as assistant vice presi­
dent, government
re la tio n s .
W a a g e formerly
was le g isla tiv e
counsel for the
A sso c ia tio n of
Registered Bank
Holding Compa­
nies, Washington,
D. C. A member
of the District of
D. I . W A A G E
Columbia Bar, he
graduated from the American Universi­
ty College of Law after receiving a
B.A. degree from the University of
* * *
John P. Knutson, president, Mid­
land National Bank of Minneapolis,
has a n nounc e d
t h e election of
Richard L. John­
son to assistant
trust officer. Mr.
Johnson j o i n e d
the bank in 1974
as trust admini­
strator. He gradu­
ated f r o m St.
Cloud State Col­
R. L. J O H N S O N
lege in 1969 with
a degree in management and in 1970
received his certificate of completion at
the American Management Associa­
tion’s Management Internship Program
in Saranac, N. Y.
* * *
First Bank System, Inc., Minneapo­
lis, has announced several promotions.
Elected assistant vice presidents, First
Bank System and First System Services

are: Arthur E. Friday, and Thomas A.
Hilt, operations officers, data process­
ing; John E. Jonas, manager of the
computer audit group, and Mae Kushlan, purchasing manager. Elected assis­
tant vice presidents of First System Ser­
vices are John A. Marka, Henry T.
Thompson and Stuart K. Miller, exam­
ination officers; Donald R. Nygaard,
operations officer, and Robert E.
Welchlin, trust examination officer.



At the July 10 stockholders meet­
ing of the Upper Midwest Automated
Clearing House Association, new offi­
cers and four new directors were elect­
ed. They are:
President— Loren A. Hagemeyer,
secretary-treasurer, American Baneorporation Inc., St. Paul (holding com­
pany for American National Bank &
Vice President— Hugh 1). Me Na­
ni ee. group vice president and control­
ler, Midland National Bank, Minne­
Secretary— Gerald A. Bilski, vice
president-operations, Midway National
Bank, St. Paul.
Treasurer— David B. Krentz, vice
president-manager of service division
in operations, Northwestern National
Bank, St. Paul.
The four new directors are:
Herb L. Thorndal, president, Bank
of North Dakota, Bismarck.
James R. Smith, vice president-cash­
ier, Fidelity Bank & Trust Company,
Donald F. Bertsch, vice presidentcashier, National Bank of South Da­
kota, Sioux Falls.
Alan Kirchner, president, The
American Bank, Alma, Wis.



Plans for construction of a new
North Side office of the First Nation­
al Bank of Minneapolis have been
announced by Gordon Crum, assistant
vice president and manager of the of­
The new building will be on North
Washington Avenue between 17th and
18th Streets, two blocks from the
present location. The existing building
will be razed for freeway development.
The structure will be one-story with
drive-in and parking facilities. Ground­
breaking is scheduled for September
with completion in the summer of
N o rth w e ste rn

B a n k e r, August
Federal Reserve Bank of St. Louis



The Bank P oll.
Changes in Short-Term Interest Rates
When asked to predict when short-term interest rates are most likely to bottom out, 3 out of 4
bankers believed rates would bottom in the second or third quarters of 1975.
Of all bankers polled, 43% see short-term interest rates beginning to increase in the fourth
quarter of 1975. Another 23% of the bankers see no increase in rates until sometime during
1976 or beyond.
1. W h e n do you th in k s h o r t-te rm in te re s t ra te s a re m o s t lik e ly to b o tto m o u t
d u rin g th e c u rre n t c y c lic a l decline?

R esponse:

Assets under $ 1 00 M M
Assets over $ 1 00 M M


S eco n d
Q u a rte r

T h ird
Q u a rte r

F o u rth
Q u a rte r




S o m e tim e
D u rin g
1975 or
B eyond


A nsw er

T o ta l



2. W h e n do you th in k s h o r t-te r m in te re s t ra te s a re m o s t like ly to begin increase
ing again?
S eco n d
Q u a rte r


Assets under $ 1 00 M M
Assets over $ 1 00 M M



T h ird
Q u a rte r

F o u rth
Q u a rte r

S o m e tim e
D u rin g
1975 or
B eyond

A nsw er

T o ta l












lt ic



Your bottom line is our top priority.


N orthw estern
Federal Reserve Bank of St. Louis

B anker, A u g u s t



Minnesota News

Ernest C. Pierson, group vice presi­
dent of Midland National Bank of
Minneapolis, has been elected chair­
man of the Downtown Branch
YMCA’s board of management.
George G. Magnuson, bank vice
president, has been re-elected chair­
man of the advisory board of the Sal­
vation Army for the 1975-76 term.

Joins Winona Bank
E. Ronald Dreas has joined the First
Northwestern National Bank, Winona,
as real estate loan
officer, according
to A. E. Stoa,
Mr. Dreas was
formerly a 14year partner of
Winona County
Abstract Compa­
ny and most re­
cently was field
underwriter for the
New York Life Insurance Company.
He is a graduate of DePaul University,
College of Law, Chicago.
Executive Changes at
Detroit State Bank
Detroit State Bank of Detroit Lakes
has announced several executive
changes. Parnell E. Sanford, president,
will become chairman on September
1. C. LeRoy Larson, president of the
Citizens State Bank of Brandon, will

you can

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All inquiries strictly confidential.
N orthw estern


Litchfield Bank Announces
Promotion, Addition
The Northwestern National Bank of
Litchfield has promoted one staff mem­
ber and added a new employee.
Ronald A. Arndt, who joined the
bank as cashier in November of 1972,
has been elected a vice president suc­
ceeding Ron Schmeits who recently
took over as president of the North­
western Bank of Jordan. Mr. Arndt
began his banking career in 1959 at
the Security Bank and Trust Company
in Owatonna.
The new staff member is Larry
Klimstra who has been named cashier.
Mr. Klimstra began his banking career
at the First State Bank in Litchfield
where he worked from 1962-65. He
also has been associated with banks
in Lakefield, Foley and Staples. He
was executive vice president of the
Staple State Bank from 1972 to 1974.
William A. Kuehl
Funeral services were held recently
for William A. Kuehl, president of the
Citizens State Bank of Walnut Grove.
Mr. Kuehl began his banking career
in Springfield in 1935. He had served
as bank president for 40 years and was
recently honored for his 50 years of
service in banking.

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in banking?

Call 338-8111

become president and executive officer
of the Detroit Lakes bank. LaVerne
Olson recently assumed duties as cash­
ier. He formerly was cashier of the
Farmers State Bank of Frederick,
Mr. Sanford will reach retirement
age on June 1, 1976, and will continue
as an active officer of the bank until
then. He joined the bank in March,
Mr. Larson has been with the Bran­
don bank for the past 26 years. Mr.
Olson had been with the Frederic bank
for 11 years.

Federal Reserve Bank of St. Louis

Ì9 7 5

Hibbing Bank Holds
Ribbon-cutting ceremonies were
held recently at the new drive-in fa­
cility of the Merchants and Miners
State Bank of Hibbing, according to
James Hansen, bank president.
The new drive-in bank, located four
blocks from the main building, features
one direct and three remote tellers and
a walk-in lobby. Donald Kirkpatrick
assistant vice president, will manage
the new office.

First National, Hibbing,
Promotes Two
First National Bank of Hibbing has
announced the promotions of Edith A.
Gunderson to assistant cashier and
Jeannine Y. Miskulin to customer ser­
vices representative.
Named State BAI Director
Duane C. Gronlund, vice president
and cashier, Northern City National
Bank, Duluth, has
been named a
state director of
Bank Administra­
tion Institute, Na­
tional banking or­
ganization h e a d quartered in Park
Ridge, 111.
In his new post,
Mr. Gronlund will
D. C. G R O N L U N D
represent the In­
stitute throughout Minnesota, as a vol­
unteer official, coordinating statewide
membership services for the organiza­
tion’s 275 member banks and nine lo­
cal chapters. He will continue his duties
at Northern City Bank while serving
his two-year term.
Northwestern State, Jordan,
Announces Staff Changes
Northwestern State Bank of Jordan
has announced the election of Ronald
L. Schmeits as president and chairman
and the promotions of John A. Briemhorst to vice president and director and
Gloria Krueger to cashier.
Mr. Schmeits previously was vice
president at the Northwestern National
Bank of Litchfield. Before 1968 he had
held positions at Northwestern Nation­
al Bank of Norfolk, Nebr., and on the
examination staff of Northwest Bancorporation.
Mr. Breimhorst joined the bank in
1957 and Mrs. Krueger in 1959.
Roseville Bank Promotions
Daniel Mortensen and Carol J.
Goetz have been promoted to assistant
cashiers at the Mid America National
Bank of Roseville, according to Bernhard Loewen, bank president.
Elysian Banker Retires
William N. (Bill) Kennedy recently
retired as cashier of the Elysian State
Bank after over 33 years of service.
The bank’s staff hosted an open house
in his honor.
Mr. Kennedy joined the bank in

Mi nnesota News

Executive Changes at
First Nat’l, Rochester
Ray L. Roberts has been elected
chairman and Paul W. Olander presi­
dent of The First
National Bank of
R o ch ester. Mr.
Roberts has been
associated w i t h
the bank since
1949 w h e n he
joined it as man­
ager of the timep a y department.
He was elected
assistant cashier
in 1953, assistant vice president, in
1954, vice president in 1957, executive
vice president in 1962 and president,
and managing officer in 1966.
Mr. Olander formerly was president
of the Red River National Bank and
Trust Company of Grand Forks,
N. D., since March 1, 1973. He pre­
viously had been a vice president of
The First National Bank of Great
Falls, Mont., for six years, and a vice
president of the First National Bank of
Grand Forks. He also has been with
the Minnesota State Banking Depart­
ment and an examiner with the Federal
Deposit Insurance Corporation.
Also announced were the elections
of three new officers and the promo­
tion of another. Adelaide P. Reese
was elected trust investment officer
and Howard P. Gallatin and Joseph
E. Borland were elected assistant trust
officers. Douglas A. Wright was pro­
moted to personnel officer.
To Head Forest Lake Bank
Forest Lake State Bank recently
elected Larry R. Lindeberg president
replacing the late A. J. Grun.
Mr. Lindeberg has been with the
bank since 1959 when he began as
bookkeeper. He was elected an as­
sistant cashier in 1961, vice president
in 1965 and executive vice president
in 1968.
Benedict H. Hartmann
Funeral services were held recently
for Benedict Hartmann, director of
The First National Bank of Waconia.
Mr. Hartmann, 66, began his bank­
ing career as a bookkeeper at the
First National Bank of Rosemont in
1929. In 1930 he joined the Waconia
bank as assistant cashier, and at the
time of his retirement in 1972 he had
attained the position of executive vice
Federal Reserve Bank of St. Louis


New NABW Groups Elect Officers

OFFICERS of two newly organized groups of the N a t’l Assoc, of Bank Women were
elected recently. Shown a t left are officers of the Central Lakes Group: s e c y ./
treas., Rose W ilmes, a.c., Plaza Park State, W aite Park; vice chm n., Erma Bettin, a.c.,
1st Am erican N a t'i, St. Cloud, and pres., Betty Lam m , a.v.p., Princeton State. At right
are officers of the Pioneerland group: chm n., Helen Wright, a.c., State Bank of Sleepy
Eye, and vice chm n., W innifred Balkenoi, a.c. & aud., 1st NW N a t’i Bank, Redwood
Falls. S ecy./treas. Helen M ahnke, a.c., Citizens State, Olivia, was not present.

Enge Joins Staff of
Vernon Center Bank
Terry Enge, former vice president
of Security State Bank, Mankato, has
joined the staff of Vernon Center State
Bank as vice president in insurance
and banking.
Littlefork Bank Observes
50th Year in New Facilities
The State Bank of Littlefork recent­
ly observed its fiftieth birthday anni­
versary in its newly remodeled banking
facility. Open house was held and spe­
cial souvenir gifts were given, accord­
ing to Jay Beasley, bank president.
Lake Crystal National
Promotes Two
Edward Ellanson has been pro­
moted to vice president and Gail
Thompson to cashier of the Lake
Crystal National Bank, according to
Donald Ackland, bank president.
South Central AIB
Elects Officers
T. William Coughlan has been
named president of the South Central
Minnesota chapter of the American In­
stitute of Banking. He is assistant vice
president of Valley National Bank of
North Mankato.
Other officers elected include: vice
president, Art Cooper, cashier, Nation­
al Bank of Commerce, Mankato;
secretary, Pat Kunkel, Valley Nation­
al, North Mankato, and treasurer, Ed
Ellanson, cashier, Lake Crystal Na­
tional Bank.
Board members elected are Gwen

Outka, Security State Bank, Manka­
to; Linda Hines, Northwestern Nation­
al Bank, Mankato; Cal Johnson,
assistant cashier, First National Bank,
Mankato, and Roger Lovik, vice presi­
dent, American State Bank, Mankato.

Hendrum Bank Celebrates
50th Anniversary
The Norman County State Bank of
Hendrum recently celebrated its fiftieth
anniversary with an open house and
the grand opening of its remodeled
quarters. Robert V. Leiseth is the
bank’s president.
Joins Mankato Bank as
Vice President, Director
Todd P. Ward has joined the Securi­
ty State Bank of Mankato as director
and vice president in charge of lending
and administration, according to A. C.
Norland, bank president.
Mr. Ward previously was a director
and president of Lincoln Trail Bank
and Trust Co., Fairview Heights, 111.
Hibbing Bank Holds
Open House
The Security State Bank of Hibbing
recently completed a three-day open
house and six-week premium promo­
tion celebrating the opening of its new
Pioneer Bank, Duluth,
Promotes Two
June Ellefson, cashier, and Rose
Mndrak, assistant cashier, recently
were promoted to assistant vice presi­
dents of the Pioneer National Bank,
N orthw estern




South Dakota

S ecretary


Major Changes Made At
Northwestern, Sioux Falls
Curtis A. Lovre was advanced to
chairman of the board and chief execu­
tive officer of the Northwestern Nation­
al Bank of Sioux Falls, and Charles P.
(Buck) Moore, currently president,
First National Bank, Aberdeen, was
named president. These changes, to be
effective October 1, 1975, were an­
nounced following the board of direc­
tors meeting held July 15.
Mr. Lovre’s career with Northwest­
ern spans nearly 40 years, starting as a
teller with the Brookings branch in
1937. He became manager at Brookings
in 1943, joined the Northwest Bancorporation staff as a bank relations
officer in 1950 and was elected a vice
president in 1954. Rejoining North­
western in Sioux Falls as a vice presi­
dent in 1957, he was named president
and chief executive officer in 1960.
Among Mr. Lovre’s many civic ac­
tivities, he serves as a director of the
Sioux Falls Stockyards Cbmpany, Agri­
cultural Insurance Company, Crippled
Children’s Hospital and School, South
Dakota Council for Economic Educa­
tion, and the Sioux Falls Industrial De­
velopment Foundation. He is vice presi­
dent of the University of South Dakota
Foundation, president of the Sioux
Falls Community Hotel Company and
is on the board of trustees of the First
Lutheran Church.
He is a member of the Northwest
Bancorporation personnel advisory
committee, and is past president of the
South Dakota Bankers Association,
past state vice president of the Ameri­
can Bankers Association, and past
president of the Sioux Falls Chamber
of Commerce.
Mr. Moore, a native Montanan,
graduated from Montana State College.
He spent his early banking career at
the Northwestern National Bank of
Great Falls, Mont., and on July 1,
1969, was elected president of the First
National Bank of Aberdeen. A gradu­
ate of the Stonier Graduate School of
Banking, Rutgers University, Mr.
Moore is a member of the executive
N orthw estern

Banker, August
Federal Reserve Bank of St. Louis

Ì9 7 5

committee of the ABA agricultural
bankers division, and of the agricultur­
al committee, South Dakota Bankers
Association. He is a director of the
Northwest Agricultural Credit Compa­
ny, Greater South Dakota Association,
Northern State College Foundation
Board, Aberdeen Development Corpo­
ration Board and the South Dakota
Council on Economic Education. He
also serves as a member of the South
Dakota State Investment Council.



Groundbreaking Held at
First Potter, Gettysburg
A groundbreaking ceremony was
held recently to start construction of
a new building for the First Potter
County Bank of Gettysburg.
The project, which will cost about
$300,000, is scheduled to be com­
pleted by January 1, according to R.
T. Wuttke, bank president.
The new building will be 60 by 82
feet of brick construction with a glass
and stucco front, and will include a
drive-in window. It will be one-story
with a basement which will house
kitchen facilities, the main vault and
safety deposit section.

Security State, Emery,
To Have New Building
Construction of a new building for
The Security State Bank of Emery be­
gan recently.
The new building will be 50 by 50
in dimension with all facilities on one
floor. It will include three offices, lob­
by, banking machine room, conference
room, restrooms and storage. The
bank will be of brick construction with
a soffit front. Nioda Builders, Inc., of
Sioux Falls is the general contractor.
Construction is expected to be com­
plete by November 1.
Sioux Falls Banker Named
State BAI Director
Donald F. Bertsch, vice president
and cashier of the National Bank of
South Dakota, Sioux Falls, has been
named a state director of Bank Admin­
istration Institute, national banking as­
sociation headquartered in Park Ridge,
Mitchell National Elects
2 Vice Presidents
Glen Gedstad and Dale Holm have
been elected vice presidents of the
Mitchell National Bank.
Mr. Gedstad joined the bank in
1971 after association with the Nation­
al Bank of South Dakota. He is super­
visor of operations and personnel. Mr.
Holm, manager of the instalment loan



department, began his banking career
in 1949 in Irene and joined the Mit­
chell bank in 1963.

South Dakota Bankers Group Meetings



Rapid City

Mobridge Country Club
Howard Johnson Motel
Western Inn
Staurolite Inn
Guest House


Valley Exchange, Lennox,
Holds Open House
Valley Exchange Bank, Lennox, re­
cently held an open house in its new
addition. New features include a drivein window and enlarged bookkeeping
department and storage facilities.

North Dakota

P resident



S ecretary


Huron Bank Display

A FEEDER pig was the s ta r attraction of
a display in th e lobby of the N at'l Bank of
S. D., Huron, during a recent red m eat
prom otion. The pig & feed necessary to
fatte n it to m arket w eight w ere on display
and given to M ike M iller who guessed
th e ir costs. Pictured from I. to r. are bank
employees Barbara Dietz, Barbara Tschetter, M ichelle H aggar, Vicki M iller, Sharlene DesLauriers, Juanita G lanzer & Linda
W aldner.

Northwestern, Sioux Falls,
Announces Promotions
The Northwestern National Bank’s
new Marion Road
office in S i o u x
Falls has announc­
ed the election of
Gene W. Mueller
as assistant man­
ager. He joined
the bank in 1969.
Also announced
was the promo­
tion of Alan G.
H o d g s o n from



personal loan officer to assistant man­
ager at the Colonial office and the elec­
tion of Rose Mary Vortherms as credit
Federal Reserve Bank of St. Louis

Elected President of
Grand Forks Bank
William L. Connelly has been
elected president of the Red River Na­
tional Bank and
Trust Company
of Grand Forks,
succeeding Paul
Olander who is
now president of
the First National
B a n k of Ro­
chester, Minn.
Mr. Connelly
began his bank­
ing career as a
trainee at the First National Bank of
Austin, Minn., in 1961 and from 196264 served as an examiner for First Sys­
tem Services, Inc., He joined the First
Edina National Bank, Minn., in 1964,
was elected assistant cashier in 1966
and assistant vice president in 1968.
He was elected president of the First
State Bank of Babbitt, Minn., in 1969
and most recently was president of the
Northfield National Bank, Minn.
N.D. Banking School
Elects Class Officers
Donovan L. Neprash, vice president
of the Citizens State Bank, New En­
gland, has been elected president of the
freshman class of the North Dakota
School of Banking.
Other officers elected are: vice pres­
ident, Theodore F. Foss, assistant
cashier and agricultural representative,
Citizens State Bank at Mohall and
secretary-treasurer, Ella L. Nordby,
manager, Motor Bank, First National
Bank and Trust Company, Bismarck.
The graduating class established a
North Dakota School of Banking
Scholarship Trust Fund with an initial
contribution of the students or their
banks of $1,000. The fund is to be
used to award a scholarship each year
of $500 or more to a junior or senior
undergraduate student in the field of
business or finance who intends to pur­
sue a career in banking in North Da­
kota, who has maintained a position

in the upper one third of his class and
is in financial need.

Promotions at Kenmare
Leonard M. Jorgenson, president of
the State Bank of Kenmare, has an­
nounced the following promotions:
Mert W. Coughlin, from cashier to vice
president and cashier; Lila Gast and
Verne! 1 Hanson, to assistant cashiers.
The bank, which was first chartered
in Mohall in 1925 as the Renville
County Bank, recently observed its
fiftieth anniversary. An open house
was held.
Joins Mandan Bank
James L. Drege has been appointed
assistant agricultural representative at
The First North­
western National
Bank of Mandan,
according to J. E.
Mr. Drege is a
1967 graduate of
State University.
He was associated
with the Farmers
Home Administration in Grant and
Sioux Counties for a year and a half
and Morton County for four years. He
began his work with FHA working
summers while in college at Rugby.
Construction Underway at
First National, Moorhead
Construction has begun on a 50 by
150 foot addition to the First National
Bank of Moorhead, according to W.
R. Amundson, bank president. Com­
pletion date is expected to be March
1, 1976.
The addition will house administra­
tion, agricultural and commercial de­
partments on the main floor and book­
keeping and safety deposit area of the
lower level. The present facilities will
be remodeled. The outside will have
new facings of bronze, glass and alumi­
N orthwestern

B a n k e r, A u g u st



First Graduates of the North Dakota School of Banking

SHOWN is the first graduating class of the N. D. School of Banking, University of N. D., Grand Forks. The school is a series of
courses in banking consisting of a week each sum m er for two sum m ers in June of each year. M em bers of the graduating class
are: Jon Goodman, a.c., 1st N a t’l, Fargo; Ronald Kuznia, a.v.p. & cash, Drayton St.; Gerald Thomte, a.v.p., Farmers St., Lisbon;
Ivo M. Klein, a.c., 1st NW N a t’l, M andan; Gene Neumiller, v.p. & cash., Farmers St., Maddock; James Goetz, v.p., Security St.,
New Salem; Ronald Bartholomay, a.v.p., McIntosh County, Ashley; Dennis Schlittenhardt, a.c., 1st N a t’l B & T, Bismarck; Russell
Slotten, v.p. & m ark, off., M erchants N a t’l B & T, Fargo; Victor L. Johnson, a.v.p. & cash., 1st N a t’l, Grafton; Melvin V. Heere,
m arketing rep., Am erican N a t’l of St. Paul, M inot; Ralph Weisenberger, cash., The Farmers St., Richardton; Harlan D. Anderson,
a.c., The 1st St., Casselton; Daniel M. Heide, a.v.p., Am erican St., Williston; Leonard L. Eaton, cash. & v.p., 1st N a t’l, Fessenden;
LeRoy E. Lokken, v.p. & ag. rep., The Bank of Tioga; Joel A. Lindell, a.c., Walsh County Bk., Grafton; Floy Olson, a.c., Mandan
Security; James Peterson, a.c., 1st N a t’l, Jam estown; Ruth E. Ramsey, v.p. & cash., Security St., Adams; Peter McKenzie, a.c.,
Lam b’s Bank of Michigan City; Roger Berglund, 1st v.p. & cash., The Bank of Rhame; Jon Hanisch, a.c., Farmers St., Crosby;
Harvey O. Hoff, a.v.p., 1st N a t’l B & T, Bottineau; Jerry R. Hahn, a.v.p., Am erican B & T, Minot; Harold T. Knudtson, e.v.p.. Secu­
rity Bk., Hebron; Michael Dettmann, teller, Bank of Beulah; Monte S. Jerstad, Union N a t’l, Minot; Curtis Zimbelman, a.c.,
1st W estern, M inot, and Ed S. Hagert, pres. & cash., Farmers & M erchants, W im bledon.

Wahpeton National Bank
To Build Auto Bank
William Sanger, president, Wahpe­
ton National Bank, said his firm will
soon build an auto bank in north
Wahpeton. Plans call for three lanes
for automobiles with room for three
additional drive-up lanes. Also includ­
ed are plans for a station for truck traf­
Joins Fargo Bank
David Wanner has joined the First
National Bank and Trust Company of
Fargo as trust representative, accord­
ing to R. D. Flarkison, bank president.
Mr. Wanner is a graduate of North
Dakota State University in 1969 and
a graduate of the University of North
Dakota School of Law. Previously Mr.
Wanner was associated with Barrett
Mobile Home Transport, Inc., of
Fargo as corporate counsel. He will
work in estate and trust administration.
Work Begins on Cando Bank
Work has begun on a new $200,000
Towner County State Bank in Cando.
Included in the 5,000 square foot
building will be a community room,
drive-in window and night, depository,
according to W. D. Johnson, bank
N orthw estern Banker, August
Federal Reserve Bank of St. Louis



S ecretary

R iverton
Laram ie

Bank of Wyoming,
Sheridan, Announcements
Patrick M. Meehan, Sheridan den­
tist, has been elected to the board of
the Bank of Wyoming, Sheridan, ac­
cording to C. B. Metz, board chair­
Mr. Metz also announced the elec­
tion of Robert H. Miller, a veteran of
10 years banking experience, to the
position of cashier.
To Head Laramie Bank
E. J. (Woody) Haines has been
named president and chief executive
officer of the The First National Bank
of Laramie.
Mr. Haines succeeds P. W. (Bill)
Wilke, Jr., who has joined the Bank
of Nevada, Las Vegas, as president
and chief executive officer. Both banks
are affiliates of Western Bancorpora-

tion, a Los Angeles-based bank hold­
ing company.
A third generation banker, Mr.
Haines joined The First National in
1957 after attending The University
of Wyoming.

Wyo. Banco Sells
Colo. Subsidiaries
Wyoming Bancorporation, Chey­
enne, has announced an agreement to
sell its three wholly-owned subsidiaries
in Greeley and Fort Collins, Colo., to
a group of Greeley businessmen for
$1.85 million effective September 2.
Under the agreement, the Greeley
group headed by Everett E. Francis,
president of Greeley Finance Co. of
Colo., and a director of Wyoming
Bancorporation, will purchase the
Greeley Finance Co. of Colo., the
Greeley Finance Co. and the Fort Col­
lins Finance Co.

Mr. Kjoss is a graduate of the Uni­
versity of Iowa, Iowa City; Central
States Banking School and The
Columbia University Bank Manage­
ment School. While in Kalamazoo, he
served as a trustee of Kalamazoo
College, Bronson Methodist Hospital,
Junior Achievement and the Chamber
of Commerce.


P resident

S ecretary

H elena

Banco of Montana
Elects Directors
Bancorporation of Montana, Great
Falls, has announced the election of
C. H. Brocksmith
and O. E. Markle
as directors of the
c o m p a n y and
Francis E. Galla­
gher as an adviso­
ry director. All
three are Glasgow
residents and di­
rectors of First
Security Bank of G. H. BROCKSMITH
Montana, N. A.,
Glasgow, an affiliate acquired by Bancorporation in 1973.
Mr. Brocksmith, an advisory direc­
tor since 1974, is chairman of the
Glasgow bank and of Trust Corpora-

staff members to officer positions.
They include Robert Anderson to in­
stalment lending officer, Nancy Botchek to operations officer and Con­
stance Centoni to auditor.

To Head Billings Bank
Richard A. Kjoss has been elected
president and chief executive officer of
the Security Bank,
Billings, accord­
ing to Homer A.
Scott, bank chair­
man. Mr. Kjoss
joined the bank as
executive v i c e
p re s id e n t
chief operating of­
ficer in April after
serving as presiR A KJOSS
of The
American National Bank and Trust
Company of Michigan, Kalamazoo.
He replaces Warren F. Vaughan, who
has retired after association with the
bank since April 8, 1948. Mr. Vaughan
will continue as a director.

Bankers Donate Blood

AN unusual conference took place recent­
ly in First N a t'I Bank of Billings 2nd floor
conference room w here 3 8 First N a t’l e m ­
ployees gathered to donate blood. The pro­
gram was adm inistered by Blood Services
of M ontana.

The Security Bank of Colstrip Opens


tion of Montana, an affiliate of Bancorporation. He has been president of
the Montana Bankers Association, in­
structor with American Institute of
Banking, member of the regional ad­
visory council to the Comptroller, di­
rector of the Federal Reserve of Min­
neapolis, Helena branch, and secretary
of the American Bankers Association
nominating committee.
Mr. Markle is president of Markles,
Inc., Glasgow farm implement and
hardware dealer. Mr. Gallagher, also a
director of Trust Corporation, is an at­
torney with Gallagher and Archambeault, P. C.

3 Advanced at Southside
Earl W. Johnson, president of the
Southside National Bank, Missoula,
has announced the promotions of three
Federal Reserve Bank of St. Louis

THE Security Bank of Colstrip looked like an old-fashioned ‘land office' last week when
it opened its doors,” said Tom Scott, pres. Colstrip is in the heart o f the Eastern M on­
tana coal strip minning area and is the site of M o n ta n a ’s newest bank. The scene shows
potential custom ers filling the lobby and lined up across the parking lot. O ther officers
are: Neal Thielen, v.p., & Ed Garding, a.c.
N orthw estern

B an ker, August





ficer; Richard Eshelman, assistant
credit officer; Greg Finley and Barbara
Natelli, assistant consumer banking of­
ficers; Beatrice Seder, assistant opera­
tions officer, and David Spausat, as­
sistant accounting officer.


President, Operations Officer
Named at Arvada Bank
Northwest State Bank of Arvada has
announced the appointment of Robert
Central Bank, Denver,
Mr. Tutt is president of El Pomar A. Leonard as president and the pro­
Investment Co., executive vice presi­ motion of Sal Boscia to operations of­
Elections and Promotions
Max Brooks, chairman of Central dent of the Broadmoor Hotel, Inc., ficer. Mr. Leonard succeeds L. I. Paul­
Bank of Denver, has announced the president of Garden City Co., chair­ son, who has assumed the presidency
election of Larry man of the executive committee of of Southeast State Bank of Denver re­
Varnell and Ben Holly Sugar Co., chairman of the cently opened at 3600 South Yosemite.
Gibson to senior executive committee of Central Tele­
After a 12-year career with the
v i c e presidents, phone and Utilities Corp., and a di­ Louisiana National Bank of Baton
and the promo- rector of Affiliated Bankshares of Rouge, Mr. Leonard served in an exec­
t i o n s of Fred Colorado, Inc.
utive capacity with the Corporate De­
Doud to v i c e
velopment Group, a Louisiana-based
p re s id e n t
and Named Chairman of
holding company which controls sev­
Helen Loehr and Import/Export Committee
eral banks. He is a graduate of the
A1 Finamore to
H. George Capelo, assistant vice University of the South in Sewanee,
operations offic­ president of the international division Tenn. Mr. Leonard joined the bank
of The First National Bank of Denver, in May.
Mr. Varnell joined the bank in 1951. has been appointed chairman of the
Mr. Boscia has been with the bank
He was named assistant vice president Export/Import development commit­ since its opening in April of 1974. He
and director of public relations in 1960 tee of the Federation of Rocky Moun­ was with the Arvada State Bank for
six years.
tain States.
The Federation, with headquarters
in Denver, is an organization which de­
velops policies and programs for trans­
portation, natural resources, housing,
satellite communications, market de­
velopment, human resources and the

Exec. M g r.

D en ver

First of Denver Announces
Promotions and Elections
Charles E. (Chad) Snow and Gil­
and promoted to vice president in
Romero have been promoted to
1965. Mr. Gibson joined the bank in
of The First National
1952 as a management trainee. He was
elected an assistant cashier in 1961, as­ Bank of Denver.
Mr. Snow, with the correspondent
sistant vice president in 1963 and vice
department, joined the bank in
president in 1967. He heads the cus­
1973 following 16 years of ex­
tomer services division.
in banking. He served in the
Mr. Doud has been associated with
the bank since 1968. In 1970 he was corporate development department un­
named assistant cashier, in 1972 assis­ til December of 1974. Mr. Romero
tant vice president and in January of heads the check processing division.
1975 manager of customer account­ He joined the bank in July of 1967 as
an officer in the data processing and
ing in the customer services division.
Master Charge divisions before assum­
ing his present position.
Named Chairman of
Also announced were the promo­
Colorado Springs Bank
tions of Craig Gammon, Master
Russell T. Tutt has been named Charge officer, and Thomas L. Thom­
chairman of the First National Bank as, consumer banking officer.
of Colorado Springs succeeding Joel
Newly-elected officers are John
A. H. Webb who has been with the Perizzolo, vice president, accounting;
bank for 40 years and recently re­ Frances Rimer, consumer banking of­
ficer; Nancy Williams, investment of­
N orthw estern

B anker, August
Federal Reserve Bank of St. Louis


IBA Elects Officers
J. Howard Gentles has been elected
president of the Idaho Bankers Asso­
ciation. Mr. Gentles also is vice presi­
dent of the First Security Bank of
Idaho, N. A., Boise.
Other officers elected are Curtis E.
Eaton, chairman and president of the
Twin Falls Bank & Trust Co. as first
vice president and Thomas H. Allen,
senior vice president of the Idaho First
National Bank, Boise, as second vice
Jay L. Nielsen, executive vice presi­
dent of D. L. D. Evans & Co., Bank­
ers, Albion, was elected treasurer.
Opens Idaho Falls Office
The Idaho First National Bank,
Boise, has opened a facility at 1555
Broadway, Idaho Falls.


Get to know
Bill Fleming.
He's a Rocky Mountain
A correspondent banker who knows your area
like the back of his hand can offer an even
stronger helping hand. Because he knows the
degree and direction of commercial growth.
The goals and needs of the people. And the
background which could influence today’s
Bill Fleming knows the Rocky Mountain area.
He graduated from Wyoming University.
Worked with banks in both Sheridan and
Laramie. And then brought this knowledge of
the Rocky Mountain area to us. Almostadecade
ago. Since then, he has had experience with
almost every correspondent service. And this
can be of great service to you. So, call him soon!
fc w fl

17th and Champa, Denver, Colorado 80202
Phone (303) 893-1862
Federal Reserve Bank of St. Louis

N orthwestern

Banker, August



Western News

Bank and Trust Company and Idaho
Bank & Trust Company Corporation.
Mr. Bischoff joined the bank in
1956 as assistant vice president and
commercial loan officer. He was
elected a director and executive vice
president in 1966.

Washington News

E verett
W ashington Bankers

Promoted at Rainier Nat’l
James A. Torkko has been pro­
moted to vice president and manager
of the Longview office of Rainier Na­
tional Bank of Seattle. He succeeds
Robert F. Crook who retired after 46
years with the bank. Mr. Torkko
formerly was assistant manager and
assistant vice president.
Also announced was the election of
Martin D. Walker as assistant vice
president in the bank’s Vancouver of­
Application Disapproved
An application by The First Ameri­
can National Bank of Port Townsend
for permission to establish an office in
the area of Quilcene, Jefferson Coun­
ty, has been disapproved.
Opens in Pasco
The Ben Franklin National Bank
has opened at 528 West Clark Street
in Pasco. Robert W. Pischel is the


R. K. H E M IN G W A Y
Utah Bankers

Executive Changes at
Commercial Security
Robert H. Bischoff has been named
president and chief operating officer
of Commercial Security Bank, Salt
Lake City. Richard K. Hemingway has
been named chairman and chief execu­
tive officer.
Mr. Hemingway continues as chair­
man and president of Commercial
Security Bancorporation and Mr.
Bischoff continues as executive vice
president of the Bancorporation. Mr.
Hemingway is also chairman of Idaho

B a n k e r , August
Federal Reserve Bank of St. Louis


Zions First National Elects
2 Senior Vice Presidents
W. LeMar Webb and Noall J. Ben­
nett have been elected senior vice
presidents of Zions First National
Bank, Salt Lake City, according to
Roy W. Simmons, president. Mr.
Webb also was elected a director.


O rego n Bankers

OBA Elects New Officers
Charles R. Boyle, Jr., has been
elected president of the Oregon Bank­
ers Association. He is senior vice presi­
dent and manager of the Bank of Cali­
fornia, Portland.
Other new officers are George D.
Gratke, president of the Douglas Na­
tional Bank, Roseburg, president­
elect; E. George Ottum, president of
the Commercial Bank, Salem, vice
president, and Leonard L. Gibson,
president of the Great Western Nation­
al Bank, Portland, treasurer.
Members elected to the OBA execu­
tive council are J. Allan Gard, presi­
dent, Lincoln Bank, Lincoln City; Nor­
ris N. Heinbuch, executive vice presi­
dent, Oregon Bank, Portland; Howard
Hickam, president, Citizens Valley
Bank, Albany; John Segerstrom, presi­
dent, Pendleton Banking Company,
and Alden L. Toys, president, Citi­
zens Bank of Corvallis.
Named at Portland
First National Bank of Oregon,
Portland, has announced the election
of Robert R. Ames to senior vice pres­
Associated with the bank since
1963, Mr. Ames was named assistant
vice president in 1966, and in 1970,
was promoted to vice president and
manager of the Fifth and Salmon of­
fice. He was appointed manager of the

head office when it opened in 1972
and has served as regional vice presi­
dent responsible for a group of Port­
land offices since 1974.

WBDPC Promotes
Two officers of Western Bancorp
Data Processing Company’s regional
office in Portland have received new
appointments. Dennis R. Fisher, region­
al planning officer, has been elected
vice president, and Jerry R. Duncan,
Portland technical support manager,
has been named assistant vice presi­
The company is a subsidiary of
Western Bancorporation, Los Angeles.
First Nat’l of Oregon
Staff Changes
First National Bank of Oregon,
Portland, has announced the follow­
ing staff changes: Kenneth L. Stoutt,
vice president and Far East rcpresenta-



tive in Hong Kong, appointed vice
president and manager of the interna­
tional division; Donald S. McClave,
named vice president and marketing
manager; Charles W. Marshall, vice
president and manager of the main of­
fice, appointed regional vice president
for a group of Portland metropolitan
area offices, and Lloyd O. Randall, ap­
pointed trust officer at the main bank.

Merger Approved
An application to merge Southern
Oregon State Bank with Valley of the
Rogue Bank, the former of which to
become the survivor, has been ap­
Elected at Ogden
Leon P. Coleman has been ap­
pointed vice president of the real
estate and instalment loan division
of Zions First National Bank of Og­
Formerly vice president of Bountiful
State Bank, Mr. Coleman became
manager of that bank when it was
merged into Zions First National.


. > -

C reative Banking is being able to
th e trees through th e forest.
You can t judge the potential of a customer's business or ideas only on
the prevailing state of the economy.
Some people have the knack for making things w ork, regardless of
W e realize that. It s just one difference between First of Denver and those
w ho think less creatively.
This philosophy, this confidence and this trust enable us to help you help
your customers.
First of Denver has more than 2 5 0 correspondent
banking relationships and now you know one of
the reasons why.


W hatever your need, we'll find the solution.
That's creative banking. It's our business.

F ir s t


of Denver
We create solutions.
17th and Welton (303) 893-2211
Member First National Bancorporation
Federal Reserve Bank of St. Louis

N orthw estern

Banker, August




U.S. N a tio n a l B ank p e o p le are e x p e rts in s o lv ­
ing y o u r p u zzlin g p ro b le m s. A nd it’s n e v e r a g am e
w ith us. W e u n d e rs ta n d y o u r in d iv id u a l n ee d s and
w e are e x p e rie n c e d in fig u rin g o u t h o w to m a ke o u r
s e rv ic e s w o rk fo r you. It’s no m y s te ry w h y o v e r'^ S C "
b a n ks in 10 sta te s brin g th e ir p ro b le m s to us. W e ll
fit in p e rfe c tly w ith y o u r p eople, to o!

Banks in states adjacent
to Nebraska can call us
toll-FREE 800-228-9511.

w este rn B anker, August
DigitizedN ofor
Federal Reserve Bank of St. Louis


Nebraska banks can
call usto ll-FR E E


Joanne C. Stahl, with the bank since
1965, is manager of the facility.
The building includes two drive-up
windows, night depository, vaults and,
teller equipment. Consultant, architect
and general contractor was Bank
Building Corp., St. Louis.




Exec. M g r.


Executive Changes at
Grand Island Bank
Overland National Bank, Grand
Island, has announced the elections of
Wayne R. Morris
to chairman; Phil­
lip J. Zeller, Jr.,
to president, and
Willard W. Westover to vice chair­
Mr. M o r r i s ,
who joined the
bank in 1947 and
was elected presi­
dent in 1964, will
continue to guide the business develop­
ment efforts of Overland.
Mr. Zeller, 48, has moved to Grand
Island from the Security National Bank
of Kansas City, Kan., where he was
senior vice president for marketing and
business development, having joined
the bank in 1968. Prior to that he was
engaged in Chamber of Commerce
work in Kansas City, Kan.
Mr. Westover, formerly senior vice
president, has been with Overland Na­
tional 34 years.
Elected at Grand Island
Roy Dinsdale of Palmer has been
elected to the board of the First Na­
tional Bank of Grand Island. He is a
partner of Dinsdale Bros., Inc., a farm­
ing, cattle feeding, grain elevator and
fertilizer business.
Mr. Dinsdale has interests in a num­
ber of banks in Nebraska, Wyoming
and Iowa, including the State Bank of
Palmer, Nebr. He is a member of the
board of directors of the Omaha
branch of the Federal Reserve Bank
of Kansas City.

Named Cashier at Norfolk
Milford F. Weaver has been pro­
to cashier of the Northwestern
ties, American Play World and North­
western Steel and Supply Co.; Richard National Bank of
J. Spady, associated with McKinley Norfolk, accord­
and Lanning Farm Management and ing to Tim V.
the Mary Lanning Hospital Trust, and Stern, bank presi­
L. Dale Watley, vice president of Ag- dent.
Mr. Weaver, a
graduate of Northe a s t Nebraska
Ag Credit Meeting Planned
Technical Com­
The Nebraska Bankers Association munity College,
has scheduled an Agricultural Credit has been associ­
Symposium September 21-23 at the ated with the bank
Hilton Hotel in Lincoln. Complete de­ for 17 years. He is a 1965 graduate of
tails of the Conference will be pub­ the Bank Administration Institute’s
lished at an early date.
auditing course, the 1971 School of
Basic Banking and the 1973 Nebraska
Bankers Association Security School.
Controlling Interest Sold
In Farmers Bank, Cook
Controlling interest in the Farmers
Construction Begins on
Bank of Cook has been purchased by
Mrs. Paul H. Naeve; her daughter, First National North
Construction has begun on The First
Mrs. Helen Douglas, and her grand­
Bank North, York, drive-up,
sons, Judson B. Douglas III and Paul
walk-in bank to be located at 18th
J. Douglas.
Street and Lincoln Avenue.
Also announced was the addition of
The 17,000 square foot building will
Kenneth Lipps to the bank’s staff. He
a lobby, two walk-up tellers,
formerly was with a savings and loan
private office, vault, employee lounge
association in Lincoln.
and restroom. Drive-up features will
consist of a two-teller drive-up win­
Hastings State Opens
dow and two lanes served by pneu­
New Drive-Up Facility
matic tubes with capacity to expand
Hastings State Bank recently held to five lanes. The building also will
a grand opening at its new drive-up fa­ have a drive-up night depository.
cility at the north entrance to Good Sa­
Completion is scheduled for early
maritan Village on east Highway 6. fall.

Nebraska Group Meetings Set
ROUP meetings for the Nebraska Bankers Association this fall have
been moved to the month of October, according to an announcement
from the association. Complete information about the program will be
printed in the next issue. Dates and locations are as follows:

First National, Hastings,
Elects 4 Directors
Norman Nackerud, president of the
First National Bank of Hastings, has
announced the election of three new
directors. They are James T. Hansen,
president of Hansen Building Special­
Federal Reserve Bank of St. Louis




Meeting Site
Ramada Inn
Elks Club
Elks Club
Radisson Cornhusker
Holiday Inn
Villa Inn
N orthw estern

B an ker, August



Sell, Social Settlement, Kiwanis, mem­
ber of the Kountze Memorial Choir for
47 years, and also a member and past
captain of the Tangier Shrine Cantors.


HE executive committee of the

First National Bank of Omaha has
announced the appointment of Charles
H. Fries as a vice president in the com­
mercial loan department. A graduate
of the University of Wisconsin, Mr.
Fries previously was a vice president
with the First Wisconsin National Bank
of Madison.



Richard I). Moss has been elected
vice president of the Banco Mortgage
Co. He has been with the firm for five
years and has been manager of the
Omaha office for the last year.
The firm also announced the promo­
tions of John Bintner and Ted Mench
to assistant secretaries.



Ron H. Bielenberg, cashier of the
Southwest Bank, has been elected pres­
ident of the Omaha chapter of the
American Institute of Banking for
1975-76. Other officers elected in­

clude: first vice president, Edward
Ostransky, assistant vice president,
U. S. National Bank; second vice pres­
ident, Gary D. Peterson, assistant
cashier, First Westside Bank; and sec­
retary-treasurer, Jan M. Larkin, The
Omaha National Bank.



Arthur R. Larsen, vice president of
Northwestern National Bank, Omaha,
recently re tire d
after 47 years of
service. The bank
held a reception
in his honor.
Mr. Larsen be­
gan his banking
career as a car
messenger driving
a Model T Ford.
He has worked
under five of the
six presidents of the bank.
Mr. Larsen is past president of Ad-



Six new appointments, including two
promotions and the elections of four
new officers, have been announced by
Kermit Hansen, president of the
United States National Bank of
Omaha. Larry T. Eischeid has been
promoted to trust tax officer and Don­
ald L. Wolcott to trust investment of­
ficer. New officers are Joseph J. Borghoff, credit officer; Robert R. Rossel,
assistant operations officer; Kay K.
Sanders, assistant trust tax officer;
Robin A. Waller, assistant trust offi­
cer, and Michael E. Yeshnowski, as­
sistant operations officer.



The executive committee of the First
National Bank of Omaha has an­
nounced the ap­
pointment of three
new o f f i c e r s :
Bruce E. Cramer,
operations officer,
manager — Drive
In; C. William
Joe, marketing of­
ficer, and Harold
A. Shelbourn, as­
sistant trust oper­
ations officer.

WMmi S

C. W . JOE



Mr. Cramer, a native of Beatrice,
graduated from the University of Ne­
braska in 1973 where he was a mem­
ber of the baseball team. He is current­
ly doing graduate work at the Universi­
ty of Nebraska at Omaha.
Mr. Joe, a native of Sleepy Eye,
Minn., is a 1968 graduate of Midland
College at Fremont and is currently do­
ing graduate work at the University of
Nebraska at Omaha. His responsibili­
ties in marketing include business de­
velopment and training.
Mr. Shelbourn, a native of Valen­
tine, attended C. E. School of Com­
merce. He joined the bank in 1968 and
has worked in trust operations since
that time.
N o rth w e ste rn

B a n k e r,

Federal Reserve Bank of St. Louis



first national bank o l ornano • one first national center • omaha, nebraska 68102 • 341-0500

21961*5 7 00










1 , 1*55)00
1 0 , 000)00
1 , 6 5 8 ( 1*9



1,282 L50
1,332 50
1,1*55 00





10,000 00


1,658 1*9


317 35
287 35
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ni*. 03
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1,007 22
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3- 15-75




First in s e rv ic e .
First in re ta il.
First National Bank of Omaha now offers
our customers the convenience of a con­
solidated statement of accounts.
We call it (ftaccounts because
each customer's checking, sav­
ings, certificates of deposit, in­
stallment loans and overdraft
protection are all together on
one simple statement,

Now you too can offer this new customer
convenience. Well be here to help with the
practical experience plus on-line
access to a central information file.
Be the first in your area to otter con­
solidated statements of accounts.
Call the Correspondent Banking
Department at First National soon.

first nation al bank
of omaha

you're in first national territory
In Nebraska call us Toll Free at 800-642-9907, From States adjacent to Nebraska call us Toll Free at 800-228-9533,
Federal Reserve Bank of St. Louis

N o rth w e ste rn

B a n k e r,

A u g u st



Nebraska News

Plan 19th Market Day
John E. Kara, executive vice presi­
dent of First Stock Yards Bank in St.
Joseph, Mo., has announced the Nine­
teenth Annual Market Day will be held
September 10.
Registration will begin in the lobby
of the bank, located in the Livestock
Exchange Building, at 9:00 a.m., and

will be followed by a tour of Peach­
tree Doors Inc., in St. Joseph. Lun­
cheon will be served at the Feeder
Pig Auction Center, at which time
guests will be given a report on the
current day’s market.
The afternoon session will start at
2:00 p.m. at the St. Joseph Country
Club. Featured speaker will be Samuel

First National, McCook
Adopts Career Apparel
The First National Bank of McCook
recently oufitted its female employees,
in a career apparel wardrobe coordi­
nated with the interior of the bank’s
new building.
The interior of the public service

Serving the Midwest...

Municipal Bonds

Fiscal Agents

Corporate Bonds

Listed and Unlisted Securities

Agency Bonds

Investment Banking

M u n ic ip a l B o n d D e p a rtm e n t
100 C o n tin e n ta l B u ild in g
19th & D o u g la s
O m a h a , N e b ra s k a 68102

moves., '
for your

F ir s r


Member New York Stock Exchange, Inc.
and other Principal Stock and Commodity Exchanges
Omaha • Lincoln • Columbus • Grand Island • Hastings • Atlantic
Cedar Rapids • Des Moines • Fort Dodge • Sioux City • Kansas City * Chicago




il l

When you need bank supplies . . •
Call Howard Yarwood, in Omaha, Ne­
braska, one of our experts in bank
printing and supplies, or . . .
Call US at ITS_


Ihiill'll Sillies Check Hook Company
P.O. Box 3644

N orthw estern

B an ker,

Federal Reserve Bank of St. Louis

Omaha, Nebraska 68108

D. Addoms, executive vice president
and treasurer, Monfort of Colorado,
Inc., Greeley, Colo., whose topic will
be “Will There Be Cattle Feeding in '
1985?” A panel discussion of present
and future trends in livestock and grain
marketing is scheduled for 3:00 p.m.
As usual, the Annual Market Day
will be climaxed with a social hour
starting at 4:30 p.m. and a steak din-,
ner at 6:00 p.m.

(402) 345-3162

SHOWN with Harold E. Larmon, bank
pres., in th e ir career apparel are Kathleen,
Jankouitz, and Lavonne Ohlson, assistant

area was done in earthy tones, so
brown, beige, gold and white were se­
lected for the career apparel ward­
robes. Each now has 16 pieces in her*
Ellerbroek’s Career Apparel of Carroll, la., was selected to provide the
clothing by Lavonne Ohlson, assistant

Northeast BAI
Elects Officers
Raymond G. Tiedje, executive vice
president of the Bank of Norfolk, re­
cently was elected president of the
Northeast Nebraska chapter of the
Bank Administration institute.
Other officers elected include: vice
president, Keith Redinbaugh, executive
vice president, Bank of Tilden; trea­
surer, Barry Marsh, assistant cashier,
First State Bank of Oakdale, and sec­
retary, Larry Wangrud, vice president,*
DeLay First National Bank, Norfolk.


Our brain: one of the largest
bank computer processing
system s in the country.
If you want to add speed and efficiency to your
banking operation, NBC is the place to start.
Through our Correspondent Division, you can
“ pick our brain” . . . one of the most sophisti­
cated bank computer systems anywhere.
We offer you:
• “ total proof and transit” (check processing)
• demand deposit accounting

Jim N orris

D uane N elson

• full range of loan accounting
• time deposit accounting
• general ledger accounting
• total on-line teller system
• central information system
• payroll
• accounts receivable
• accounts payable

Get the details from our
Correspondent Bank O fficers.

Ray W eilage

Richard N elson

These men can put our brain to work for you.
J ust give them a call. They’re fully committed to
providing total data processing service for you.

National Bank of Commerce
13th and N Sts.
Lincoln. Nebraska
Member FD1C

T he people place.
WATS line: 800-742-7317
Federal Reserve Bank of St. Louis

N orthw estern

Banker, August


erations officer, and Nola Jean Newsham, operations officer. Other officers
include David L. Patrick, president;
Max Schneider, vice president, Thom­
as B. Fisher, secretary-treasurer, and
Duane F. Schainost, executive loan of­
Board members are William C.
Smith, David L. Patrick, Warren C.
Johnson, Dale L. Young, and Duane
F. Schainost.

T HOMAS a . ERNST has been
elected a vice president in the cor­
respondent bank division of First Na­
tional Lincoln.
A native of Columbus and a gradu­
ate of the University of Nebraska with
a Master of Arts degree in education­
al psychology, Mr. Ernst began his
banking career in 1969. He has been
a correspondent bank officer for three
years. Prior to entering banking, Mr.
Ernst spent five years as an educator
in the Lincoln, Fullerton and Sidney,
Nebr., public school systems.



First Mid America Inc., investment
bankers and commodity futures and
cash grain brokers with headquarters
in Lincoln, announced recently the
transfer of its membership on the Kan­
sas City Board of Trade from Charles
J. Burmeister, president of First Mid
America Inc., to Kenneth E. Nelson,
vice president and manager of First
Mid America Inc.’s Kansas City cash
grain office.

First Mid America Inc., recently
purchased the seat on the Kansas City
Board of Trade to facilitate its en­
trance into the cash grain business.
First Mid America is one of only two
New York Stock Exchange, Inc.,
member firms to also be in the cash
grain business.



First Savings Company of Lincoln,
an industrial loan and investment com­
pany chartered and regulated by the
Nebraska State Department of Bank­
ing, recently opened in the New F-N
Building at 56th and O Streets.
A subsidiary of First National Lin­
coln Corp., the company will special­
ize in loans for autos, furniture and ap­
pliances, home improvements, real
estate, debt consolidation, taxes, vaca­
tions, business equipment, farm ma­
chinery, grain storage, irrigation sys­
tems, etc.
The day-to-day operations are un­
der the direction of Julius M. (Bud)
Peschel, vice president and chief op­

Let Me Help You W ith...
Your Credit Insurance Needs
G ro u p • In d iv id u a l L ife • A c c id e n t & S ic k n e s s

Telephone-Quick Service on our
WATS Line in Nebraska. Dial your
Access Code, then 800-742-7335.

Steve Sutton

N orthw estern

B anker, August 1 9 7 5
Federal Reserve Bank of St. Louis



First National Lincoln recently
opened its new, permanent AutoBank
East facility at 56th and O Streets. In
conjunction with the opening, the bank
held a three-day open house at which
all persons over 18 were invited to en­
ter a Sweepstakes Drawing contest.
Fifty winners received prizes ranging
from $1,000 to a dozen 12 ounce New
York cut steaks which were awarded
to the thirty-first through the fiftieth
prize winners.



Directors of Lincoln Bank East have
announced the election of John A.
Westerberg to president of the bank.
Mr. Westerberg, a Lincoln native, has
been a commercial loan vice president
with First National Bank of Fremont
for the past two years. Prior to moving
to Fremont, Mr. Westerberg was in the
commercial loan division of the Na­
tional Bank of Commerce in Lincoln.

Observes 75th Year
The Fullerton National Bank recent­
ly observed its seventy-fifth anniver­
sary. C. H. Hosier is chairman and
Levetta Hosier is president.
MACHA Signs Up
500th Bank
The new Mid-America Automated
Clearing House Association (MAC­
HA) has just signed up its 500th
bank. This makes it the second-largest
operational automated clearing house
in the nation.
Frank E. Boesche, MACHA presi­
dent, said that the 500th bank to join
is Farmer’s State Bank of Kilgore,
Nebr. Kilgore is a cattletown in the
north central part of the state with a
population of 110 people.
Joins Nebraska City Bank
Marvin L. Penning has joined the
Farmers Bank of Nebraska City. He
formerly was assistant operations of­
ficer in the bookkeeping department
at the United States National Bank in



Box 81008 • Lincoln, NE 68501
Federal Reserve Bank of St. Louis

N orthw estern

Banker, August

19 7 5
Federal Reserve Bank of St. Louis

Dakota, and as copywriter and produc­
tion assistant with two advertising

J. L. CAMPBELL, JR. P resident Hum boldt


Exec. V.P.

Des M oines

First National, Sioux City,
Announces Staff Changes
Richard C. Taylor, president of the
First National Bank in Sioux City, has
* announced a number of promotions
and an addition to the bank’s staff.
Paul A. Childers has joined the
bank as assistant vice president and
manager of the main office Family
Banking Center in the banking centers
and marketing division. A native of
* Omaha, Nebr., Mr. Childers formerly
served as second vice president and
manager of the main bank facility at
The Omaha National Bank. He also
has served as computer systems officer
with the First National Bank of Lin> coin, Nebr., and as systems representa­
tive for Burroughs Corporation.

Vernon C. Roberts, who has served
with the bank since 1962, was named
vice president and auditor in the
cashier and staff services division. He
attended Morningside College.
Other promotions include: Kent
Mahler, assistant cashier; Don Tollefson, assistant auditor, cashier and staff
services division; Wanda Wheeler, pur­
chasing officer, operations division,
and Kent Wigg, marketing officer,
banking centers and marketing divi­
Mr. Mahler formerly served with the
Iowa-Des Moines National Bank and
more recently with the Northwest Bancorporation, Minneapolis, before com­
ing to First National in 1974. Mr.
Wigg, who joined the bank in 1974,
formerly served as a graduate research
assistant in the Business Research
Bureau of the University of South

Farmers Savings, Traer,
Holds Open House
Farmers Savings Bank of Traer,
with the second phase of a remodeling
and expansion project completed, re­
cently held an open house on its
sixtieth anniversary.
The interior has been refurbished,
a larger conference room has been
added, staff kitchen and lounge areas
have been expanded and private cou­
pon booths built. Towa art highlights
the interior. Exterior work included re­
placing the front sidewalks.
W. C. Talen is the bank’s president.
Maquoketa State Bank
Holds Open House
The Maquoketa State Bank recently
held an open house in its new facili­
ties in conjunction with the celebration
of June Dairy Month.
Visitors were served cookies, milk
and ice cream by 4-H members who
were helping promote dairy products.
Drawings for dairy products and prizes
were held.
Ed Tubbs is president of the bank.

Frisbee Winners Really Get Airborne





Federal Reserve Bank of St. Louis


TH E GREAT M NB Biggybank Frisbee Tou rn am ent sponsored by M erchants National
Bank, Cedar Rapids, sailed to a resounding success with the winners literally “ floating
on a ir." Held in Veterans M em orial Stadium , the Frisbee event attracted more than
7 0 0 contestants for the tw o-night elim ination trials in four age categories— 6 and under,
7 -12, 1 3-17, and over 18. First place winners in each division received a trophy, $ 2 5
savings bond and two box seats fo r the Cedar Rapids Giants 1 9 7 5 season. Second
place winners received a trophy, $ 1 0 M NB savings account and two box seats for the
season. O ther winners received various trophies box seats and gam e tickets. Winners
w ere judged on the accuracy and distance of th e ir throws. As shown in photo above,
targets consisted of an enlarged cartoon and photo drawings o f th e M NB building.
N orthwestern

Banker, A ugust



Iowa News

Bankers Were Guests at Amana V. I. P. Golf Tourney

AREA BANKERS had an opportunity to m eet and watch m any of the n ation ’s top professional golfers during the recent Am ana V.I.P.
golf outing a t Iowa City courtesy of The M erchants Natl. Bk„, Cedar Rapids. Shown here are John Mangold, sr. v.p., host bank, and
Robert C. Wede, pres., Goose Lake Savings Bank. The bank hosted a reception and dinner following golf.

Lawyer Placement Service
The Young Lawyers Section of the
Iowa Bar Association now provides a
committee designated as The Lawyer
Placement Committee for the purpose
of assisting prospective employers and
experienced lawyers who are seeking
either new personnel or new positions.
The committee will not serve to assist
recent law graduates in obtaining posi­
tions but deals only with the placement
of experienced attorneys.
Individuals or firms with an avail­
able legal position in private practice,
industry, banking, government or an

administrative agency, or attorneys
seeking relocation, may contact Dale
Johnson, chairman, Lawyer Placement
Committee, 6th Floor Snell Building,
Fort Dodge, la. 50501.

Emmet Tinley Joins
Council Bluffs Savings
Emmet Tinley III has joined the
Council Bluffs Savings Bank, accord­
ing to Ed H. Spetman, Jr., bank presi­
dent. Mr. Tinley will be responsible
for the marketing and public relations
He is a native of Council Bluffs and

a graduate of Creighton University,
Omaha. He has returned from Green
Bay, Wise., where he was a sales rep­

Farmers Savings, Holland,
Undergoes Face-lifting
The Holland office of the Farmers
Savings Bank, Grundy Center, which
will celebrate its 70th anniversary next
year, is undergoing an exterior face­
: [* i!
The Vernon Bascome Co. of Vinton
is sand-blasting and tuckpointing the
building. Other improvements include
a new door, windows, and complete
re-wiring of the building.
A. J. Scott
Funeral services were held recent­
ly for A. J. Scott, director of the First
State Bank of Sioux Rapids.
Mr. Scott retired from banking on
January 1, 1972, after serving 50 years
on July 1, 1970. He began his career
with the First National Bank, Linn
Grove, on July 1, 1920. In 1936 the
bank’s charter was transferred to
Sioux Rapids.


R egisters

"Accepted S ale R egisters by Bank
Clerks E veryw here"
For i n f o r m a t i o n w r i t e

O akland, Iow a
N o rfor
estern B anker, August
Federal Reserve Bank of St. Louis


Io w a

Banks of Iowa to Acquire
1st National, Sioux City
F. Forbes Olberg, chairman of the
board and president of Banks of Iowa,
Inc., a C e d a r
holding company,
and Gilbert C.
S w a n s o n , Jr.,
O m a h a , Nebr.,
h a v e announced
an agreement un­
der which Banks
of Iowa, Inc. will
pay $81.51 per
share for the 104,281 shares of outstanding stock of
First National
Bank in Sioux City
owned byMr. Swanson. This repre­
sents approximately 95% of the out­
standing shares of First National Bank
in Sioux City.
The $8.5 million proposed transac­
tion is subject to approval by the board
of governors of the Federal Reserve
System. If this approval is obtained and
purchase of the shares of First Nation­
al Bank in Sioux City is completed,
Banks of Iowa will submit a tender of­
fer to the remaining shareholders at
$81.51 per share.
First National Bank in Sioux City
had assets of $122,036,565 on June
30, 1975. Banks of Iowa had consoli­
dated assets of $564,455,132 on the
same date.
Banks of Iowa currently owns all
of the outstanding stock of The Mer­
chants National Bank of Cedar Rapids;
Union Bank and Trust Company, Ot­
tumwa; Valley National Bank, Des
Moines; Council Bluffs Savings Bank;
First National Bank, Burlington; Banks
of Iowa Computer Services, Cedar
Rapids, and has an application pending
for approval by the Federal Reserve
System to acquire 80.49% of the out­
standing shares of Key City Bank and
Trust Company, Dubuque, Iowa.
Chicago Fed To Monitor
Consumer Banking Affairs
The Federal Reserve Bank of Chi­
cago has established a Consumer
Banking Affairs Division. The primary
function of the division will be investi­
gation of banking matters of concern
to customers of state chartered banks
which are members of the Federal Re­
serve System.
The division will be the responsibil­
ity of Assistant Vice President Harris
C. Buell, a veteran in the supervision
and regulation of banks, who is famil­
iar with the increasingly complex regu
Federal Reserve Bank of St. Louis

lations involving banks and the bank­
ing public.
Because the overlap of banking reg­
ulation is often confusing, the Fed said
it is also prepared to act as a clearing
house for customers of banks regulated
by other federal agencies.

Commercial Lending School
Applications are being received now
for the first resident session of the
Spring 1976 graduating class of the
National Commercial Lending Gradu­
ate School to be held October 26-31
at the University of Oklahoma in Nor­
man. A. Robert Abboud, chairman of

N ew s


the ABA’s commercial lending division
which is sponsoring the school, said
it offers experienced lenders a man­
agerial perspective of the lending func­
tion and is organized to provide stu­
dents with a greater depth in the deci­
sion-making process. The entire school
program, taught by a faculty from the
top ranks of the banking industry,
includes two one-week resident ses­
sions. Students must complete interim
projects to qualify for graduation.
Joseph Caramanica, associate di­
rector, ABA commercial lending divi­
sion, is in charge of registration.

Sel l . . .
. . . is our job

O u r e xp e rie n c e d personnel and fie ld tested p ro g ra m s o ffe r you:
)► H elp in a d a p tin g q u ic k ly to indus­
try changes.
► H elp

in p e rs o n a liz in g

yo u r c re d it

insurance p ro g ra m .
► H e lp


p e n e tra tin g



h ig h e r



p e rce n t


m arket

cove re d .
Service th a t goes b e yo n d the o r­
d in a ry to

h a n d le y o u r “ out o f the

o rd in a ry ”

risks o r problem s.

Ask us at the Iowa Bankers
Convention how we can help you
with your Credit Life program.

National Fidelity Life
8555 Harbach Blvd.
Des Moines, Iowa 50311

N orthwestern

Banker, A ugust



Iowa News

EFT Is Developing Fast . . .
( co n tin u e d fro m p a g e

(unmanned) in use at this time. One
is located in the main bank and one
is at its 56th and O facility. Both will
be on line by this fall. After a 60-90
day pilot run of these machines on­
line, First National will offer EFT to
its correspondent banks around the
state who are currently on-line with
the First’s computers in Lincoln (74
of its correspondents presently are on­
Customers of the First’s cor­
respondent banks would be issued
cards enabling them to use any termi­
nals that banks might install in their
home towns. Transactions activated
with these cards would be switched by
leased lines directly through to Lincoln
where the customer’s records are on­
line, and would get immediate updat­
ing. Gerry Schmid, vice president of
First National Lincoln, stresses that
NETS standards are being followed
throughout this entire procedure.
National Bank of Commerce, as
announced earlier, plans to begin op­
eration as early in the fall as possible
with its EFT program called Bank in
a Box. This will consist initially of un­
manned, automatic teller installations
in the new NBC building under con­
struction and at one of its office facili­
ties. Both will be on-line. Although de­
tails were not yet available, it is as­
sumed this system also would permit
NBC to offer a similar service to cus­
tomers of its correspondent banks as
First National Lincoln plans to do.
The three major banks in Omaha
all have made a firm entry into the
EFT field this summer.
The Omaha National, the state’s
largest bank, went operational with its
Bank in a Billfold plan July 2 with
terminals in 21 retail stores, available
to 40,000 ONB customers. This in­
cludes 14 Hinky Dinky food chain
supermarkets which the bank will
share with First Federal Savings &
Loan of Lincoln, the originator of this
type of EFT terminal use in the United
States. First Federal began its TMS
service through two Hinky Dinky
stores in Lincoln in January, 1974.
At the Hinky Dinky stores, termi­
N o rfor
este rn Banker, August
Federal Reserve Bank of St. Louis



nals being used are First Federal’s
IBM 2730 machines. These are
manned terminals. To consummate
ONB transactions, the clerk merely
keys into the ONB computer.
The other seven terminals, also IBM
2730s, are located in five Richman
Gordman discount stores and two
World Radio retail stores.
The United States National Bank’s
BancoCard system will be shared with
Northwestern National Bank of Oma­
ha (also a Northwest Bancorporation
member). They will be sharing five
terminals utilizing IBM 3604 terminals
which, can be accessed with MasterCharge or BancoMat cards. Terminals
are located in two Food City super­
markets, Philips Department Store,
and two other locations to be an­

Automated Clearing House

First National Bank was to go op­
erational in mid-July with 18 terminals
in 14 Safeway supermarkets in Omaha,
Bellevue and Ralston, and four Richman Gordman department stores. The
terminals are NCR 279s. About 10,000 cards have been distributed to cus­
tomers under the name of 1 Card fea­
turing the bank’s logo — a circled
numeral 1. The terminals at Richman
Gordman will operate beside the
ONB’s terminals.
No announcement has been made
to date by any Omaha bank about ex­
tending its EFT program to cor­
respondent banks outstate.
Des Moines
The lowa-Des Moines National
Bank, headquartered in Iowa’s capital
city, began a six-month test program
of EFT on July 1 with IBM 3604
terminals in three Hy-Vee supermar­
kets in the metropolitan area. So far,
it is the only bank in the state to
announce such a pilot program.
The Iowa legislature passed an EFT
enabling bill, but included an amend­
ment calling for a one-year limit on de­
velopments. This requires that pilot
projects be experimental and a report

on each be submitted to the state
superintendent of banking by next
January 1. lowa-Des Moines officials have indicated their experience report
will be shared with other banks for fur­
ther study.
The Iowa Bankers Association is
sponsoring a study based on the
premise that one or more banks will
not dominate and capture the market.
While studies and implementation con­
tinue within the two states, association
officials plan to work closely with each
other even though MAPS’ responsibil­
ity has been completed.
Automated Clearing Houses
The first active developments in
EFT have been creation and activation
of the several ACHs in the midwest.
All of these belong to the National
Automated Clearing House Associa­
tions (NACHA). The largest ACH at this time is Upper Midwest Automated
Clearing House Association (UMACHA), located in Minneapolis. In the
9th Federal Reserve District, UMA­
CHA now has 1,100 participating
By mid-July, UMACHA had placed
its 1,000th fully qualified member
bank on the books and had an addi­
tional 107 applications awaiting com­
pletion of paper work. This total of
1 107 represents 88% of the banks and
92% of the deposits among the 1,255
banks in the Ninth Federal Reserve
District, which UMACHA serves.
UMACHA went operational one
year ago and activity continues to in­
crease. In June, 1975, for example, it
distributed $11,000,000 and 61,586
entries, including Air Force payroll for
21,800 entries.
The second largest ACH in the na­
tion is the Iowa Automated Clearing
House Association with 591 members,
representing about 95% of all banks
in the state. TACHA has maintained
its planned schedule and will begin its
pilot operations September 1, and go
full operational October 1.
Permission was received last month
by the Seventh Federal Reserve Bank
of Chicago, from the Board of Gov­
ernors in Washington, for the Des
Moines Regional Check Processing
Center to operate and settle for ACH
The third largest ACH is Mid
America Clearing House Association,
which serves four and one-half states,
including all of Nebraska. MACHA
membership presently stands at more
than 500 and is growing daily. —- End


W ant to Increase Your Installment Loan Department Yields?

Richard D. Beatty, Sr.
M anager
M o d e rn iz a tio n C re d it Insurance D iv is io n

D ic k is th e man yo u w a n t! He is manager o f o u r
P ro p e rty Im p ro v e m e n t Loan Insurance D ivisio n . . . o r­
ganized to m eet the needs o f a g ro w in g nu m b e r o f
A m ericans w h o are e xpanding o r rem odeling th e ir
present homes because o f th e ever s k y ro c k e tin g costs o f
new homes. T his is a n o th e r exam ple o f h o w C entral
N a tio n a l is c o n s ta n tly designing new p ro d u cts to f i t the
needs o f th e tim es. I t is also ty p ic a l o f th e in n o vative
p ro g ra m m in g th a t is one o f the big reasons w h y C entral
N a tio n a l is generally recognized as the N o. 1 S pe cia lty
Insurance In s titu tio n in the c o u n try .
D ick is a loan insurance professional in th e tru e sense o f
the w o rd . His b ackground o f 18 years in th e fie ld

N ine years as a new business representative and branch
manager w ith n a tio n a lly -k n o w n finance com panies.
S ix years as in s ta llm e n t loan manager and o ffic e r fo r
west coast n a tio n a l banks.
Three years as vice president o f a n a tio n w id e P ro p e rty
Im p ro v e m e n t Insurance Program .
D ick w ill help yo u im p le m e n t o u r new 100% guaranteed
P ro p e rty Im p ro v e m e n t Loan Insurance Program in to
In s ta llm e n t
D e p a rtm e n t . . . a program
sp e c ific a lly ta ilo r-m a d e to f i t the unique needs o f y o u r
fin a n cia l in s titu tio n . T h is should prove to be a very
active and p ro fita b le m a rke t fo r yo u d u rin g the n e x t fe w

Call Dick collect (402) 344-7600. You will be glad you did!





/ IN S T A L L M E N T S A L E S F L O A T E R

</ P R O P E R T Y




1 0 5 S o u th 1 7 th S tre e t

O m a h a , N ebraska 6 8 1 0 2

T e le p h o n e (4 0 2 ) 3 4 4 - 7 6 0 0

A Fidelity Corporation Group of Companies
M a u ric e G . O lson
C h a irm a n and C h ie f E x e c u tiv e O ffic e r

• The Central National Insurance Company of Omaha

• The Insurance Company of Florida

• The Protective National Insurance Company of Omaha
• Security Assurance Company, Scottsdale, Arizona
• Fidelity Bankers Life Insurance Company, Richmond, Virginia (Credit Insurance Division)
Federal Reserve Bank of St. Louis

N orthw estern

B an ker, August

! 975


Iow a N ews

Plan Iowa Installment Loan Conference
1VC EMBERS of the retail banking
committee of the Towa Bankers
Association w i l l
conduct the IBA
A n n u a l Install­
ment L e n d i n g
Conference Sep­
tember 16-17 at
A d v e n tu re la n d
Inn, located at the
intersection of I80 and Highway
65 at the north­
east edge of Des
Moines by Altoona. Edward C. Doyle,
vice president of the Merchants Nation­
al Bank, Cedar Rapids, chairman of
the retail banking committee, will pre­
side at the conference. The program
will feature three concurrent workshops
the first afternoon. The program fol­
Tuesday, September 16
8:30 Registration (Lobby).
9:30 Call to order — Presiding —Edward C. Doyle, chairman,
Retail Banking Committee, vice
president, Merchants National
Bank, Cedar Rapids.
Welcome — Jack L. Campbell,
president, Iowa Bankers Associ­
Trust & Savings Bank, Hum­
boldt. “Iowa Economic Out­
look” Jack Chapman, professor
of economics, Coe College,
Cedar Rapids.
Coffee Break
“Are You Banking On Women”
— Dee Dee Ahern, Women’s
Financial Consultant, Chicago.
11:45 Adjournment for Lunch
Luncheon Address — Dr. Wil­
bur Schaeffer, Kansas City.
2:15 Conference reconvenes (Three
Concurrent Workshops)
Delinquencies — Bankruptcies
— Repossessions
Ralph Ricketts, vice president,
Davenport Bank & Trust Co.,
Fritz Breitenstein vice president,
The State Central Savings Bank,
Don Vaudt, vice president, Toy
National Bank, Sioux City.
Developing Direct Lending
(Including Bank Cards & Per­
sonal Banker Concept)
Ronald L. Ritchey, vice presi­
dent, Davenport Bank & Trust
Federal Reserve Bank of St. Louis

Company, Davenport.
Thomas W. Pickering, assistant
vice president, Valley National
Bank, Des Moines.
Glen R. Subra, assistant vice
president, First National Bank,
Fort Dodge.
Legal Aspects
Embroidering on Consumer
Credit Cards & Fair Billing Act,
John T. Waters, vice president,
Central National Bank & Trust
Company, Des Moines.
Thomas Salsbery, attorney,
Thoma, Schoenthal,
Hockenberg & Wine, Des
R. Jack Lytle, Sr., installment
loan officer, Iowa-Des Moines
National Bank, Des Moines.
3:25 Workshops Repeated.
4:30 Adjournment.
6:00 HAPPY HOUR (Poppy’s Pub
— Adventureland Park)
Dinner — on your own.
Wednesday, September 17
9:00 Registration (Lobby).
9:30 Call to order — chairman
Cecil Dunn, superintendent of
Amendments to Regulation Z
— representative of the Federal
Reserve Bank of Chicago.
Unfair Credit Practices — Dis­
crimination — Thomas Sals­
bery, attorney, Thoma, Schoen­
thal, Davis, Hockenberg &
Wine, Des Moines.
Electronic Funds Transfer/
Where We Are In Iowa —
George Dishman, director of
corporate development, First
Data Resources, Inc., Omaha.
11:45 Adjournment.
( Continued from page 33)
expertise in areas which small business
firms cannot afford. Consequently,
when the mental assets of the bank are
employed to help in the solving of
problems of the prospect or customer,
there is a development of a close and
tenacious relationship. Sympathy is
nothing more than two hearts tugging
at the same problem.
The greatest danger in bank market­
ing in today’s competitive environment
is for banks of modest size to attempt
to emulate the marketing functions and
components of the giant banks. The
smaller bank is perfectly capable of

competing in today’s modern market*,
by emphasizing its intimate knowledge
of local factors, its ability to be of ser­
vice not only in financial areas but in
supplemental areas as well, and in the
development of a feeling within the
bank of pride in the part that the finan­
cial institution plays in serving its com-’
The greatest flaw would be for a
bank to give lip service to marketing
and my admonition would be to get in­
to modern marketing not with both lips
but with both feet! — End

Elects New Officers for
Student Loan Company
The American National Educational
Corporation, a wholly-owned subsidi­
ary of the American National Bank
and Trust Company of Chicago, has*
named Richard M. Stellers president.
Named executive vice president was
Charles W. Trautner, and Richard
Hawthorne and Robert Ras were elect­
ed vice presidents.
National Educational.
Corporation is among the largest of the
student loan servicing companies in the
United States, providing programs to
more than 350 colleges and universi­
ties around the country servicing in ex­
cess of 400,000 individual student
The corporation, which has been en-^
gaged in this business for over 15 years
has just completed a revised updated
program, incorporating the most mod­
ern equipment and techniques, to
which existing accounts will be con­
verted over the next few months.
Based on this capability, American*
National was recently chosen over a
number of other educational servicing
companies by one of the most presti- ,
gious major midwestern Universities to
service $17,000,000 of student loans
involving some 10,000 of the school’s
American National will provide all
automated systems and program main­
tenance and will generate necessary re­
ports on all loans made by the school
under the National Direct Student
Loan Act. American will also provide1
the University with required statements
of account, invoices and notices for
forwarding these to alumni. Under the
newly revised program, the school will
continue to maintain direct contact
with its loan participants.
American National Educational
Corporation has offices in Chicago,
Denver, Los Angeles and Washington.



Isn ’t it tim e
you took a hard,
n ew look at your
cred it life com pany?
H ere are a few facts about the Life Investors C redit Life and A & H
We offer basic credit life and we offer the m axim um overline
coverage available u n d er state laws. (And, if you w ish, w e ll sell
you ju st the overline.)
We are the largest cred it life service com pany in the state. Iowa
is our hom e. T his m eans w e can offer you u n eq u aled personal
service, as w ell as regular h elp w ith increasing your penetration.
(How often do you see y o u r p resen t cred it life rep?)
We are backed by a com pany w hose success is literally
legendary. (Does your p resen t cred it life com pany in sp ire such
O ur banking custom ers are on an in d iv id u al accounting basis.
Do w ell an d y o u ’re repaid. (A ren’t you tired of being p enalized for
the bad perform ance of others?)
A n d these are just a few of the benefits w e offer.
So is n ’t it tim e you take a hard, n ew look at your credit life
com pany?
U nless it gives you the things w e’ve just discussed, m aybe it’s
tim e yo u contact Life Investors.
Because w e offer the best credit life deal going.

Life Investors Insurance Companies of America
4333 Edgewood Rd. N.E. Cedar Rapids, Iowa 52406 (319)398-8511
Federal Reserve Bank of St. Louis

N orthw estern

Banker, August


Elect Keith Campbell
To Head
Independent Bankers

NEW O FFIC ER S— Seated from left are Pres. Keith Campbell and
Past Pres. Ben E. Summerwill. S tanding from left are Treas.
Tom W right and Exec. Secy. Richard Berglund.

Bank, Keokuk; O. Ja y Tomson,
president, Citizens N ational Bank,
Independent Bankers Convention in Charles City, and Richard C. Taylor,
Okoboji last m onth. Keith W. president, F irst N ational Bank,
Campbell, president of the Citizens Sioux City. (Banks of Iowa has
S tate Bank, Sheldon, was elected announced plans to acquire F irst
president, succeeding Ben E. Sum ­ N ational Bank, Sioux City. If the
merwill, president, Iowa S tate Bank acquisition is approved, Mr. Taylor
will not qualify as a board member.)
and T ru st Company, Iowa City.
Elected to assist President Cam p­
Key Speakers
bell were vice president, Churchill T.
Drawing a “ full house,” M artin
W illiams, president, Oelwein S tate
Bank, and treasurer, Tom W right, M ayer, author of “ The B ankers,”
president, Bankers T rust Company, gave his impressions of the banking
Des Moines. New directors are: business and predicted some things
Richard S. Goos, vice president, for the future. He was pessim istic
F irst N ational Bank, Council Bluffs; about the credit statu s of New York
Edw ard A. Langley, chairm an and City, his home base. Some of Mr.
president, Capital City S tate Bank, M ayer’s research was conducted for
Des Moines; William Logan, presi­ his book in the Cedar Rapids area.
dent, The S tate Central Savings He also spent tim e in Centerville in
500 delegates registered
for the F ourth A nnual Iowa

preparing his companion book, “ The
Law yers.”
J . Phil Campbell, Under Secretary
of A griculture, elaborated on the
reasons why grain reserves are not in
the best interests of the American
farmer. His talk is described in detail
in the July 28 issue of the
G eorge D ish m a n , d ire c to r of -<
corporate developm ent for F irst
D a ta R e so u rc e s, In c ., O m aha,
presented a dynam ic story with „
slides on the current developments in
electronic funds transfer system s. -*
Delegates were divided on the EFTS
issue. Robert Dixon, president,
Rolfe S tate Bank, and Iowa State
Director of the Independent Bankers
of America, is strongly in favor of a ^
m oratorium . He would also like to

AUTO GRAPHS— Harry Sizer, L isbon Bank & Trust C o ., and John W. Christensen, Farm ers N ational Bank, Aurelia, obtain auto g rap h e d # 1
copies of “The B ankers” from Martin Mayer, the author. M r. Sizer was p rom inently m entioned in the best seller. C E N T E R — George
Dishman, convention speaker, and Dean Knudson, University Bank & Trust C o., Am es. R IG H T — Homer Jensen, Capital City Bank, Des
M oines, and Dick Taylor, First N atio n al Bank, Sioux C ity.

N o rth w este rn Banker, A ugust
Federal Reserve Bank of St. Louis



GOLF HONORS w ere won by Gerald F. Knapp, Farm ers Savings Bank, G arw in, shown here accepting the trophy presented by Bernard
Miller, Drovers N atio n al Bank, C h icag o. C E N T E R — T en nis w inners w ere Roger Borup, W ellm an Savings Bank, and Sue Marget, Iow a
Trust & Savings Bank, C enterville. R IG H T — T en nis runnerup w inners w ere Tom Maser, Lakes N atio n al Bank, Arnolds Park, and Joan
Houghton, First N atio n al Bank, Iow a C ity.

see an additional law on the books in retary, emphasized the IIB is
Iowa lim iting the num ber of banks continuing to work on the bill to
controlled by m ulti-bank holding prohibit banking offices in unincor­
companies. Cecil Dunn, Iowa super- porated areas. He mentioned the
> intendent of banking, addressed the continuing court case against the
audience, taking a more liberal view N orthw est Bancorporation in its
* on the subject of EFT S.
proposed acquisition of Security
S tate T ru st and Savings Bank,
President’s Address
Bettendorf. I t appears now th a t the
President Summerwill stressed the case will go to the U nited States
fact th a t officers of the IIB need a Supreme Court. On the question of
continuous feedback from members, EFTS, Mr. Berglund suggested th a t
v He said the IIB has earned “ a place members ask them selves, “ how does
a t the tab le” w hether it be the the comm unity banker relate to the
y legislative table or the com m unity cost factors of E F T S ?”
service table. He suggested th a t the
425-m em ber o rg a n iz a tio n sh o u ld
Ladies’ Luncheon
work against (1) unnecessary big­
A rec o rd n u m b e r of lad ie s
ness for bigness alone (2) unneces- attended the annual luncheon. Frank
" sary regulation of banking and other Miller, cartoonist for the Des Moines
v industries by adm inistrative edict, Register was the featured speaker.
and (3) the old “ social disease” - Cartoons drawn during the luncheon
>• greed.
and auctioned included “ The B ank­
er” - “ The H ippie” - “ H appy M an” Secretary’s Report
“ H angover” - “ O u t” - Lyndon
Richard Berglund, executive sec­ Johnson and Richard Nixon. M ary

Alice Campbell, wife of the new IIB
president, purchased “ The B anker”
for her husband!
Children’s Party
A total of 109 “junior bankers”
en jo y ed a c ru ise a b o a rd th e
E m p re s s , follow ed by “ y o u n g
people’s picnic.” W ith many of the
children and young adults attending
their fourth annual convention,
numerous close friendships have
developed - further assuring the
growth and developm ent of indepen­
dent banking.
Closing Event
Bankers and their families con­
cluded the F ourth Annual Conven­
tion by holding a barbecue on the
New Inn beach. Prizes were awarded
to golf and tennis winners, and
tentative plans were made for the
Fifth A nnual Convention, to be held
at the New Inn, July 22-24, 1976.

Terry and Gordon Mennen of LeM ars Savings Bank accom pany their guest Fukuko Noguchi from Kofu, Japan (cen ter), an exchange
stu d en t. C E N T E R — A u th or Martin Mayer and Robert J. Sterling, Bankers Trust Com pany, Des M oines. R IG H T — Bill Rickert, N ational
Bank of W a terlo o , Esther and G. M. Barnett, G uth rie County S tate Bank, G uthrie Center, and Carleton and Virginia Van Dyke Farm ers
S tate Bank, M arcus.
Federal Reserve Bank of St. Louis

N orthw estern

Banker, A ugust



Photos Taken at Iowa Independent Bankers Convention

SPEAKERS STAND— IBA Vice Pres. Richard Randall; IBAA S tate Dir. Robert Dixon, and IBAA Pres. Kenneth Benda

FULL SPEED AHEAD fo r th e Em press carrying 109 ju n io r banks on lake cruise. R IG H T — John Hensley, W illia m s Savings Bank and Pete
De Rosier, N atio n al Boulevard Bank, C h icag o, hold down the fan tail during adult cruise aboard the Em press.

MB QUEEN Amy Linn Hensley, three-year-old d au gh ter of John and Linda Hensley of W illia m s Savings
arm s. Jack Marget, m .c ., Iow a Trust & Savings Bank, C enterville, looks on. R IG H T — Honorary com m issi
Dresented to Martin Mayer, auth or of “The B a n k e rs ,” and Kenneth Benda, IBAA pres., by tw o adm irals (
Federal Reserve Bank of St. Louis



Executive Vice President

Assistant Vice President

Senior Vice President

We’ll help you
add the advantages
of being big
to the advantages
of being small.
Smaller banks have the advantage of really knowing
their communities. Often they’re personally acquainted
with their customers. Big advantages.
American Trust Correspondent Bankers are here to provide you
with the advantages of being big too.
Like providing cost-saving com puter services.
Giving you fast clearing services. Participating in loans.
In fact, just about any service you'd like to offer
but d on ’t want to get into yourself. Let’s talk it over.
We have what you want in a correspondent bank.
Federal Reserve Bank of St. Louis

N orthw estern

Banker, Au gu st



Iowa News

Hansen Joins Durant Bank
Ron Hansen, a former resident of
Durant, has returned after five years
to serve as assistant vice president at
Liberty Trust and Savings Bank. Mr.
Hansen is a graduate of Arizona State
University, Tucson, in finance. He
joined the Security Pacific National
Bank in Los Angeles, Calif., after
graduation where he participated in a
management training program and
most recently served as assistant
branch manager.
To Head Emmetsburg Bank
James H. Crane has been elected
president and managing officer of the

Palo Alto County State Bank, Em­
metsburg, succeeding William J. Degnan who recently resigned. Mr. Degnan will continue in the capacity of
vice chairman and trust officer. Having
joined the bank in July, 1942, he had
served as president since April, 1963.
Mr. Crane is a graduate of Iowa
State University, Ames, The Graduate
School of Banking, Madison, Wise.,
and I. S. U. School of Agricultural
Credit. He has been with the bank
since January of 1960.
John M. Hand has been elected
executive vice president and cashier.
He joined the bank in June of 1966.
Mr. Hand is a graduate of Drake
University, Des Moines.

Monticello State Bank
Celebrates 100th Year
A centennial party was held in Mon- >.
ticello recently as the Monticello State
Bank celebrated its 100th anniversary,^
according to James A. Maurice, bank
president. The festivities included a
parade, dance and cash prizes.
The bank, established in 1861, has v
grown from 350 square feet of space
in an early day building to 9,450
square feet of space in a large, sprawl­
ing, modem building; from three em­
ployees to 38; from capital stock of
$100,000 to $800,000; and from a s - ,
sets of $200,000 to approximately $60

--------------------- ---- --------------------

Meet Ed, Gene, Wilma and Jim.

At your service.

Good business depends on good bankers.
That’s why the Banks and Bankers Division
at Security National Bank stays up-to-date on all
the services you might need.
But most important, we can give you the service
you need whenever you need it. That’s what
we’re here for. Phone: 712-277-6517

Security National Bank
6th & Pierce Street, Sioux City, Iowa

N o rfor
e s t e r n B a n k e r , A u g u s t 1975
Federal Reserve Bank of St. Louis


During the last few years especially, more and
more banks have named us the ir correspon­
dent bank.
And we couldn ’t be happier.
Because, you see, w e’ve really prepared
ourselves to be a major correspondent bank.
Take the areas of proof of d e p o s it. Or
transit work. Or collection of checks.
Or com puter work.
Any correspondent banking problem you
have, we can handle.
So tha t’s why we say — we re happy to be
named correspondent.

Federal Reserve Bank of St. Louis

N orthw estern

Banker, August



Io w a News

Ottumwa Banker Retires
Ralph Watson recently retired as
executive vice president and cashier of
the South Ottumwa Savings Bank.
His banking career began 53 years
ago at the Ottumwa bank. Mr. Watson,
73, has worked in nearly every posi­
tion in the bank since 1922. He
worked on a part-time basis until 1955
when he was promoted to cashier.
Mr. Watson will remain as secretary
of the board, a position he has held
since 1957.
Joins Dubuque Bank
William G. Kruse, president of the
First National Bank of Dubuque, has
announced that Dale P. Repass has

joined the bank’s trust department as
a trust officer.
Mr. Repass formerly was an estate
analyst with the Bankers Life, Des
Moines. He is a graduate of Wartburg
College, Waverly, and attended the
University of Northern Iowa, Cedar
Falls, and the University of Iowa, Iowa
Also announced was the election of
Carolyn A. Heeren as trust administra­
tion officer. Prior to joining the bank
in 1957, Mrs. Herren was with the Epworth Savings Bank.

Newton Banker Receives
Honor for Thesis
Donald R. Runger, president of the

OF UNDER 10,000

The “Thank You” Bank Club is a profession­
ally engineered, continuous advertising package
aimed at rapidly increasing—and holding—a
large num ber of demand deposit accounts at
your bank. It will help you:
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Bring in New Customers
Increase Traffic in Nearly All Bank
Departm ents

Jasper County Savings Bank, Newton,
has received the
highest honor a t ­
tainable at the
Stonier Graduate
School of Bank­
ing. His thesis,
entitled “A Stra­
tegic Plan for De­
veloping; and Im­
plementing a Trust
Organization for
Hawkeye Ba n corporation,” has been selected as a
library thesis. It will be placed in the
libraries of Rutgers University, the
Harvard Graduate School of Business
and the American Bankers Associa­
Mr. Runger joined the bank in 1971
as president and chief executive officer.
He formerly was with the First Nation­
al Bank of Dubuque for 13 years.

Fort Madison Bank
Names 3 Directors
Fort Madison Bank & Trust Co. has
voted to enlarge its board from nine
to 12 members and has elected three4
new directors. They are L. Gene Enke^
owner of the Hopkirk & Feightner In­
surance Agency; Gertrude K. Finley,
owner of Kessler’s Ladies Apparel
Shop, and Marilyn M. Wentzien,
Mr. Enke moved to Fort Madison
in 1973 after being manager of the-

The “Thank You” Bank Club features checking
account benefits, group travel and insurance for your
custom ers. To you, it offers a continuous, wellserviced community advertising campaign
at LOW, LOW Cost.
Get in touch w ith us today to learn how
your bank can better serve your community
—and do it profitably!

Bill Moler,
Box 934,
M aquoketa, Iowa 52060.
_________T itle __________

Z ip .
N orthw estern


Federal Reserve Bank of St. Louis





Ames office of the Kemper Insurance
Group. Mrs. Finley has been owneroperator of the apparel shop since"1
1964. She is a member of the execu-^
tive board of the Chamber of Com­
merce retail committee. Mrs. Wentzien
attended the University of Northern
Iowa and the University of Iowa and
taught elementary school for five years,.


These Iowa Bankers work
with LaSalle in Chicago
to build business for Iowa banks
■ Why do L aSalle’s c o rresp o n d en t balances con­
tinue to climb?
Two big reasons are Cy Kirk and Max 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 what Cy Kirk or Max
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 e bank on the move
LaSalle National Bank, LaSalle Bank Building
135 S. LaSalle Street, Chicago, Illinois 60690 • Phone (312) 443-2774

N orthw estern

B an ker, August


University of Wisconsin, class of 1972.
She has been active in National Secre- *
taries Association, the Des Moines Fi-^
nancial Analysts Society, and the Na­
tional Association of Bank Women.y
Inc., where she has been serving as
national treasurer.

Des Moines News
John R. Fitzgibbon,
City Bank of Des Moines
recently won five first place chief executive officer
awards for its advertising campaign,
“Banking for a brighter future.”
The campaign, prepared by Ayres
and Associates Advertising, Lincoln,
Nebr., was entered in the Advertising
Club of Lincoln’s annual Eddy Awards

ED LANGLEY, pres., Capita! City Bank
(rig h t), accepts Eddys for "T he brightest
ideas of 1 9 7 4 ” from M ike Ready, acct.
exec., Ayres and Associates Advertising,
Lincoln, Nebr.

chairman and
of the lowaDes Moines Na­
tional Bank, has
a n n o u n c ed the
election of Ronald
Kenyon to the
bank’s board.
Mr. Kenyon is
president of Ken­
yon Construction
C om pany, Des
Moines Asphalt
and Paving Com­
pany, and Bituminous Material & Sup­
ply and, in addition, has an interest in
substantial farm operations in Tama
County. He began his career in the
highway construction business in 1949.

The Central National Bank and
Trust Company has announced the re­
tirement of Mary
The awards won by Capital City F. Holstad after
Bank: first place, individual outdoor 27 years of ser­
board; first place, outdoor series; first vice. She is leav­
place, television series; first place, ing the bank to
complete local campaign; and first accept an applace, corporate identity (letterhead p o i n t m e n t by
and graphic design). This is the largest Governor Robert
number of first place awards ever won Ray as one of the
by a single advertiser in the history of three commission­
ers of the Iowa
the Lincoln competition.
State Commerce
Frank Augustine has resigned as re­ Commission.
Mrs. Holstad joined the bank in
gional director of development in east­
ern Iowa for Mortgage Guaranty Insur­ 1948 and has been with the investment
ance Corporation to become executive department since May of 1950. She
vice president of Scandia Savings & was promoted to assistant department
Loan Association in Des Moines. Mr. manager in 1971 and investment offi­
Augustine, who has moved to Des cer in 1972.
Mrs. Holstad has earned a graduate
Moines from Crestón, has been associ­
ated with the mortgage lending busi­ certificate in the American Institute of
ness for years and has been with MGIC Banking and received her diploma
from the Graduate School of Banking,
the past seven years.
N orthw estern

B an ker, August
Federal Reserve Bank of St. Louis




Edwin A. Langley, president and,
chairman of Capital City State Bank,
has announced the promotion of
Harold Wellander to vice president and
manager of the trust department.
Mr. Wellander began his career with *
Capital City State in 1938 in the proof
department. He has spent the past 134
years as a trust officer.
Following the July meeting of the
board of directors of Central National Bank and Trust Company B. C. Grangaard, chairman, announced the pro­
motion of Dwight LeRette to install­
ment loan officer.
Mr. LeRette joined the bank o n 4
March 1, 1974, and has worked in the A
installment loan department since that
time. He currently is supervising collect
tions for that department in addition to
fulfilling his lending responsibilities. 4

First National, Pauliina,
Announces Staff Changes
Dennis Petersen and Richard Fid- '
delke have been appointed to the
board of the First National Bank of
Pauliina. In reorganizing the board the
following officers were elected: Ver­
non Hibbing, president; Dennis Peter-'
sen, vice president, and Richard Fid- _
delke, cashier.
Grand Opening at LeGrand
A grand opening celebration was^
held recently at the Citizens Savings
Bank, LeGrand office, according to A1 Ward, president of the Gilman-based
bank. An I. T. Verdin replica of the
American Liberty Bell was on speciaj
display and will remain throughout
the bicentennial year.
Leon Banker Retires
Virgil Carlson, cashier of The De­
catur County State Bank, Leon, re­
cently retired after a 34 year associa­
tion with the bank. He will continuey
as an advisor to the bank.
Mr. Carlson joined the bank in
October of 1941. A year later he wa
promoted to cashier.

Availability in creases
your earnings.
We feel our availability
schedule is the best
in the continental (IS .
For more details, call our Correspondent Bank Department toll free 800-362-1615.







D E T R O IT :« /
D ^ S M O lM E S ^ v


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:::::::::::::::: I NEW YORK CITY






. j t f RICHMOND



• • ♦ st: LQÜiisi. •töÜisVfLLE.
. M rk in i nrr ■







' * EL PAS°







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11:00 P.M.
4:00 A.M.
8:00 A.M.


4:00 A.M.








National Bank S-Trust Company






U J a f f il ia t e d w it h c e n t r a l NATIONAL BANCSHARES, INC.
Federal Reserve Bank of St. Louis


New Officers

In the



NEW OFFICERS were elected by the 16state Central States Conference at the an ­
nual convention at Tan-Tar-A Resort in
Lake of the Ozarks, Mo., last m onth. Pic­
tured above, left to right, are: Seated—
Trum an L. Jeffers, exec, v.p., Minnesota
Bankers Association, M inneapolis, new
president, and Neil M ilner, executive vice
president, Iowa Bankers Association, Des
Moines, retiring
Koontz, exec, mgr., Wisconsin
Bankers Association, M adison, first vice
president, and J. I. Milton Schwartz, exec,
mgr., South Dakota Bankers Association,
Huron, secy.-treasurer. The new second
vice president, not pictured, is Willis Moreman, exec, v.p., Kentucky Bankers Associ­

Diebold Currency Counter
N an economy alternately buffeted
by the pressures of inflation and
the need for cost control
measures is a continuing one for every
business. Diebold, Incorporated sug­
gests that an avenue for both decreased
costs and more productive use of per­
sonnel, particularly for banks, super­
markets, race tracks and others re­
sponsible for large volumes of cash,
is represented by mechanized currency
The company points out that with
the Diebold 502 Currency Counter, for
example, currency can be counted five
times faster than by manual methods
and with significantly greater accuracy.
As a result, personnel need not neces­
sarily make a full-time job of counting
currency and can be used for duties
more productive than counting pieces
of paper one by one.
For additional information, contact
Diebold, Incorporated, Canton, Ohio
N orthw estern

B an ker,

Federal Reserve Bank of St. Louis

1 9 75






A loud-mouth, name-dropping jun­
ior exec took his secretary to a swank
club in New York. She was impressed.
A couple of tables away sat Rex McGraw, one of the hottest properties in
show biz. When the secretary got up to
go to the powder room, the junior exec
thought of a great way to impress her.
He walked over to McGraw and said:
“You don’t know me, but this is my
secretary’s birthday, and 1 wonder if
when she comes back you couldn’t just
come over and put your arm around
my shoulder and say hello, just as if we
were old friends. She doesn’t get out
much and she’d really be thrilled by
that, and it’ll impress her no end.”
McGraw agreed.
A short while later, the couple were
sitting over their dessert when McGraw
came over and slapped the exec on the
back and said:
“Hi there, you old son of a gun . . .
How’re ya doin’?”
The junior exec turned to him . . .
looked for a moment, and said: “Look,
Rex, why do you keep bugging me?

AUGUST, 1 9 7 5
A corn P rin ting C om pany .....................................
A m erican Express, T. C. .............................. 46-47
A m erican N ational Bank, Chicago .................. 44
A m erican T rust & Savings, D ubuque ............. 83
A stor T ow er H otel ...............................................
B ankers Personnel, In c ...........................................
B ankers T rust C om pany ...................................
B ank of A m erica .................................................... 30
C en tral N ational Bank, Des M oines .............
C olorado N ational B ank .....................................
C o n tin en tal Illinois N atl. B ank ......................
C on tin en tal W estern Ins. C o................................
D aktronics
................................................................. 35
D eLuxe C heck P rinters ........................................
D rovers N ational B ank ........................................
F in an cial In stitution Services ...........................
F irst Boston C orporation ................................... 6, 21
F irst Fin ancial M arketing ..................................
F irst M id A m erica ............................................... 68
F irst N ational Bank, Chicago ........................... 8 9
F irst N ational Bank, D enver ..........................
F irst N ational, Lincoln ........................................
F irst N ational, M inneapolis ...............................
F irst N ational, O m aha ....................................... 67
F irst N ational, St. P a u l ..........................................
F irst N ational C ity Bank, T. C .............................
Gross, Kirk C o............................................................

“You’ll be happy to know
this came today.”
How many times have I told you, leave
me alone? Now beat it!”
A Committee Is . . .
A committee is a group of people
who can talk for hours and produce
a result called minutes.
H arris B ank .................
H ibbard, O ’C onnor & W eeks




Iow a-D es Moines N ational B ank ....................... 92
Kooker, E .F .................................................................... 86
L aSalle N ational B ank ...................... ................
Life Investors Insurance Co.................................
Lincoln Benefit Life ...............................................
M erchants N ational B ank ...................................
M organ G uaranty T rust .....................................
M ortgage G uaranty Investm ent C orporation 18-19
M osler Safe C om pany ..........................................

N ational B ank of C om m erce ............................
N ational B ank of W aterloo ................................
N ational F id elity L-fe ............................................
N orthern T rust C om pany ................................
N orthw estern N ational Bank, M inneapolis . .
Packers N ational B ank ........................................
Q uality



Saint Lou-'s T erm inal W arehouse C orporation
St. P aul H ospital & C asualty ............................
Security N ational Bank, Sioux C ity .............
Senior C itizens, U nlim ited ...................................
Southw estern G raduate School of B anking . .
T riad Sign C om pany ..........................................



U nited G uaranty C orporation ..............................
U nited States Check Book C om pany . . . . 68,
U nited States N ational Bank, O m aha .............
U.S. L IF E C redit Life ........................................
V an W agenen, G. D ...............................................
Ziegler, B. C. Co.................................................. .


DROVERS - 1883

extra effort
Extra effort is the principal ingredient we put into every correspondent
banking endeavor. Enterprise of this sort has characterized our service
since the first days more than ninety years ago when cattlemen
arriving in Chicago made The Drovers their headquarters bank. We
pioneered in crediting their newly-earned cash to banks back home and
thus built strong ties of trust and integrity with banks from the Midwest
to the Rockies.
In Drovers Country you’ll find experienced help for just about every
known correspondent banking need including loans and overlines,
clearings and transit services, bond and investment portfolios.
W on’t you call to tell us how we can exert extra effort on your behalf?

Thel] rovers

National Bank of Chicago

Illustrated above is Frederic R e m in g­
t o n ’s " C u t t in g O u t A S te e r." A
14 x 17-inch reproduction suitable
for fra m in g is available w ith out cost
or obligation upon request.
Federal Reserve Bank of St. Louis

47th & Ashland Ave. • Chicago, Illinois 60609 • Phone (312) 927-7000

Member Federal Deposit Insurance Corp. • Member Federal Reserve System
• Member Chicago Clearing House Association

YES . . . We’ll Be Happy To Help

I —


George Milligan

Bob Buenneke

Bernie Kersey

Dwayne Smith





Dorothea Wolfe

John Zdychnec
■ 245-3304

Voldy Vanags

This group of people will be happy to help you with
any of your banking needs. Just give them a call any
time. If they don’t know the answer there are experts
in every field of banking at the lowa-Des Moines . . .
ready to help with your correspondent needs.

Iowa-Des Moines National bank
7th & Walnut D e s Moines, Iowa 50304
Federal Reserve Bank of St. Louis


m e m b e r f d ic



i i