Full text of The Northwestern Banker : August 4, 1969, No. 1175
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► <*- Oldest Financial Journal Serving The Central and Western States No. 1175 Des Moines, Iowa Augusf 4,1969 heavily restricted. The facts are not made any more palatable by the assertion that banks have been obliged to resort to such measures in order to live up to contractual commitments to lend — commitments given to assure ‘ big’ business customers that, come what may, they would be shielded against the impact of restrictive monetary policy or ‘ tight money,’ that they would be J. L. Robertson able to obtain bank financing to bank to do what is forbidden by expand even in times when ex law —to pay interest on demand pansion would not be in the public interest. deposits). 3. The solicitation of deposits “ A recent survey of large banks of public funds at rates in excess revealed that in April the unused of the ceiling rates prescribed by portion of such commitments aRegulation Q, by having an officer mounted to 62% of the entire loan of the bank (allegedly in his portfolio of the reporting banks individual capacity) bid for the and 88% of their aggregate busi funds and then funnel them into ness loans. Obviously, even the his bank and elsewhere in fash use of a fraction of those com would expand bank ions designed to provide him not mitments only with enough of his bank’ s credit by billions of dollars, and assets to pledge as collateral for not all of it would be used for the public funds but also with a productive purposes. return high enough to enable him “ I hope those banks have now to pay the over-the-ceiling rate. seen the handwriting on the wall “ Corner-cuttings of these kinds and that such injudicious over can easily tarnish the image of extensions of commitments will the banks which are involved, but not be repeated.” also, I am sorry to say, the image MONTANA NEWS of banking as a whole; unfortu nately, they also can make neces H ELENA: Union Bank & Trust re sary additional restrictive mea cently held open house celebrating sures for an industry already the 10th year in its new building. Warning to Banks on “ Corner Cutting” “ Corner-cutting in the field of banking in efforts to cope with inflation represents a great poten tial danger to the United States.” This is the warning issued by J. L . Robertson, vice chairman of the board of governors of the Federal Reserve System, Washing ton. His comments follow: “ Corner-cutting developed in recent months by bankers relates to the use of various ingenious devices to avoid saying ‘no’ to big business customers— to a v o id curbing credit expansion in re sponse to restrictive monetary policies designed to curb infla tion. Just three examples might be cited: 1. The sale of so-called com mercial paper (an activity legally forbidden to banks) by one-bank holding companies, subsidiaries, or affiliates to raise funds with which to purchase loans from the parent bank, thus providing it with funds to continue expanding credit in a period when bank credit should be rationed — ade quately and wisely. 2. The solicitation of funds from a nonbank institution with a promise to lend them to another bank through the federal funds market and divvy up the profits (a device designed to enable a LINCOLN...ED P Accounting with a Personal Touch F IR S T N A T IO N A L B A N K & T R U S T C O M P A N Y O F L IN C O L N 12th & N Street • L IN C O L N , N E B R A S K A • Member: F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mfg. of custom We're here to help B A N K you get what you want teller Stations Fixture C o. Spencer, la. iStor. units & desks IOWA-DES MOINES 2:00 Registration. 6:00 Cocktail Hour. NATIONAL BANK George Harnagel Member Federal Deposit Insurance Corporation GENE HAGEN TOM HORN ■ JO HN DIEFENDORF on the job for you at securlty national in sioux city ne cm IOWA NEWS DES MOINES: The N ational Bank of D es M oines has file d an a p plication with the Comptroller o f the Currency for perm ission to e sta b lish a fa c ility at 6564 Northwest Sixth Drive in P olk C ity , Iowa. GOWRIE: T he FDIC has approved a p p lication of the F irst State Bank to e x e r c is e lim ited trust pow ers. LONE T R E E : H. C. B u ell, Sr., p re s ident of the L one Tree Savings Bank was honored recen tly by h is family at a p u blic recep tion on the o c c a s io n of h is 90th birthday. Mr. B uell came to L one Tree from Cedar R apids in 1903. He was em ployed as ca sh ier of Bank at the Financial Center of the Chicago Stock Yards the Lone Tree Savings Bank, b e came v ic e president in 1948 and has served as president s in c e 1952. P E L L A : Kenneth H. Bean, chairman and v ic e president of Marion County State Bank, annpunced last w eek he is a candidate for the o ffic e of treasurer o f the Iow a Bankers A s s o c i ation. The e le c tio n w ill ta k e -p la c e during the IBA convention in D es M oines, October 22. N E B R A SK A NEWS OMAHA: F irst National of N ebraska, In c ., has purchased 573,090 of the 600,000 outstanding shares of the F irst N ational Bank of Omaha from bank shareh olders. MINNESOTA NEWS Marvin Rye, Minnesota commissioner o f banks, has announced the following program for the District 2 meeting of the National Association of Supervisors of State Banks to be held August 10—13 at Hopkins House Breezy Point, Brainerd, Minn.: August 10 P.M. August 12 A.M. 9:00 Welcome and Address —Max G. Brooks, chairman, Central Bank & Trust, Denver; vicechairman, NASSB. “ Legislation and Legal Matters’ ’ —James F. Bell, legal counsel, NASSB, Wash., D.C. “ Washington Office Report” —Dr. Harry Guenther, executive vice presidenteconomist, NASSB, Washington, D.C. Panel —“ Bank Examinations and Capital Requirements” (For bankers only.) John D. Chisholm, moderator; pres ident, Olmsted County Bank & Trust, Rochester, Minn. Hartley J. Banks, president, 1st Bank o f Commerce, Columbia, Mo. Joe Gronstal, president, Carroll Coun- Correspondent metter? W e'd like to show you Fred D. Cummings Bernard D. Miller Larry E. Makoben we con do e little bit more . . e little bit better. DROVERS Bankers Trust co. N A TIO N A L BANK t u m M IO LOCUST, ott MOOUt ol Chicago Phona ( 3 1 2 ) 927-7000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 11 A.M. 9:00 Welcome and announcements — Commissioner Rye. President’ s Address—Harry Bloom, Colo rado Commissioner; president, NASSB. “ Today’ s Responsibilities’ ’ —Clifford C. Somer, president, Security Bank and Trust, Owatonna, Minn. Panel —“ One Bank Holding Companies’ ’ Robert P. Briggs, moderator; Michi gan Commissioner. Frank Bauder, chairman, Central Na tional Bank, Chicago. Charles Edwards, president, Union Savings Bank & Trust, Steubenville, Ohio. Kenneth A. Wales, executive vice president, Minnesota Bankers Assn. William J, Kirchner, president, Rich field Bank & Trust, Richfield, Minn. “ Data Processing Bankers Beware’ ’ — Peter D. Louderback, CPA, Peat, Marwick & Mitchell, Philadelphia, Pa. P.M. 12:30 Luncheon—Sponsored by the FDIC and Federal Reserve Banks. 2:00 Coif Tournament. 9:00 Old Log Theatre Presentation. w w G A R Y STEVENSON *« J w» o i t ty Slate Bank, Carroll, Iowa. Robert W. Adams, comptroller, Citi zens Fidelity Bank & Trust, Louis ville, Ken. P.M. 12:30 Men’ s luncheon. Ladies’ luncheon. 7:15 Banquet. August 13 A.M. 9:00 “ Fed Funds —A Supervisor’ s Night mare’ ’ —Lester G. Gable, vice pres ident, Federal Reserve, Minneapolis. “ Current Economic Environment’ ’ —K. A. Randall, chairman, FDIC, Washing ton, D.C. Report from Bankers Only Panel —Mr. Chisholm. Panel —“ Can Unit Banking Meet the Needs o f Today’ s Market’ ’ James F. Bell, moderator, Washing ton, D.C. Donald M. Carlson, president, Elm hurst National, Elmhurst, 111. Pat DuBois, president, First State, Sauk Centre, Minn. Richard Doermer, president, Indiana Bank & Trust, Ft. Wayne, Ind. Adjournment. SOUTH ST. P A U L : Donald A sch en brenner and Leonard Nerka have been appointed to the newly created p o s i tions o f sen ior v ic e presidents at D rovers State Bank. R obert Ander s o n , ca sh ier, has been named a v ic e p residen t, and Bernard B orash, a s s is tant ca sh ier, has been named ca sh ier. NORTH DAKOTA NEWS Three new members have been ap pointed to the State Banking Board by Governor Guy. T hey are: Mrs. E veleen N achtw ey, president, F irst National Bank of D ick in son ; Donald T . N ick law sky, v ic e presiden t, North western Savings and Loan A s s o c i ation, F argo, and James H. Duncan, v ic e president, C itizen s State Bank of N ech e. This in crea ses the s iz e o f the board from three to s ix members. IL L IN O IS NEWS BLU E ISLAND: Funeral s e r v ic e s were held last w eek for F. ‘M. Hausmann, president, First N ational Bank. CHICAGO: James Barrett has re sign ed as ex ecu tiv e v ic e president of the N ational Boulevard Bank to a c c e p t a job as v ic e president for Wells Fargo Bank in L o s A n g eles. Before joinin g National B oulevard, Mr. Bar rett was with Security P a c ific Na tional Bank, L o s A n g e le s. COLORADO NEWS DEN VER: V illa N ational Bank, lo cated in the V illa Italia Shopping C enter, has been purchased by Den ver U. S. B ancorporation, In c ., from the Central S tates, Southeast and Southwest Areas P en sion Fund o f the T eam sters Union. The purchase is s u b je c t to approval o f the Federal YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO . O M AH A R eserve Board. Harry G. Anderson, sen ior v ic e president o f the Denver U. S. N ational Bank, has been named manager o f the bank, pending action on the holding com pany’ s application . D E N V ER : An application for a na tional bank charter for the proposed U niversity National Bank near E a st Evans Avenue and South Downing Street has been den ied, accordin g to J . R . Thom as, regional administrator o f national banks. Heading the group which had sought the charter was Weldon B. Hamilton, president o f the Cherry Creek National Bank and board chairman o f the South Denver N ational Bank o f Glendale. DENVER: The First N ational Bank o f Denver has filed an application ARE YOU READY to be President of an Iowa bank with over $40 million in footings? The man we are looking for will be a strong leader in the bank and in the community. He w ill be excited at the challenges to his ability to plan for growth, and the opportunity to implement these plans with a loan port folio aggressively involved in commercial loans, heavy real estate interests, and more than a third of the total in installment loans. He w ill obviously be a self-starter who can inspire his officers and the staff to work together for our goals. He w ill bring with him a solid reputation and an experience background that warrants a starting salary of at least $25,000 and attractive executive benefits. If you are this man, send your resume in confidence to me, the majority stockholder, in care o f — Box CID, NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for . . . Personal Attention to A ll Your Correspondent Needs CALL 402 AREA CODE 341-8765 Member Federal Deposit Insurance Corporation BARTELS, K LIE W E R AND ERISMAN THREE OF OUR MEN ON YOUR SIDE AT Jim Bartels Jim Kliewer Eimer Erisman COMMERCE TRUST RANK Kansas City, Missouri ■ □ I would like to sell my mo|ority bonk stock. □ I would like to buy majority bank stock. Pleas* Contact: J. Mason Henry, President Charles E. Walters Co., Inc. P. O . Box 1313, Omaha, Nebr. «8101 with the C olorado Bank Board and the Com ptroller of the Currency to build a drive-in banking fa cility at 1313 Tremont P la c e . G R E E L E Y : M iss B onnie Brown has been appointed bank marketing o f i ficer at the Weld County Bank. She i has been with the bank s in c e 1966, working in the marketing area at the bank s in ce 1967 and in charge of the marketing department s in c e last fa ll. WYOMING NEWS C ASPER : A $190,0 00 rem odeling p r o j e c t is sch ed uled to g et underway in the near future at the F irst N ational Bank. For Decisive Action R ely on N BC for all your correspondent needs. Mem ber FD*C National Bank of Commerce There are so many ways we can help you That's why over half the banlcs in Iowa are — M N B correspondents MERCHANTS NATIONAL BANK CEDAR RAPIDS, IO W A 52401 Member F0IC CENTRAL NATIONAL 99 “ The Bank That Cares' BANK AND TRUST Member Federal Deposit Insurance Corporation A V A IL A B LE C ash-F low Budget and Farm Loan A pp lication forms for the banker who wants to update his farm loan pro ced u res. Samples for in sp ection . Farm B u sin e ss C o u n cil, In c ., P. O. Box F , Urbana, Illin o is 61801. "V- V X-. C ALCU LA TO R S B efore you buy look at the new SONY E lectron ic C alculator. It’ s portable with a handle and b a tteries, as w ell as regular house current. Operates with sim ple lo g ica l d irection s. P lu s M inus-M ultiply - D ivide and E quals. C a ll or write today. SONY Corp. 1115 High Street, D es M oines, Iowa 50309. T elephone (5 1 5) 2 4 4 -0 1 1 4 . Blake Bales Vice President Bank Under the Big WANT ADS R ates 25 cents per w ord per insertion. M inimum: 12 w ords. NORTHWESTERN BANKER 306 15th St., Des M oines, Iow a WANTED E xperien ced cash ier for $6 m illion bank c lo s e to the Tw in C itie s. Send resume to F ile LMB, in care of the NORTHWESTERN B A N K E R , 306 15th St., D es M oin es, Iowa 50309. Mein Bank 13th S O Sts. / Patio Offics 10th S Ó Sts. / Lincoln, Msbreslie Û Û CODY: The First State Bank recen tly held an open house at its new bank building in observance of the bank’ s 10th anniversary. F ollow in g the open h ou se, the bank staged an evening m usical production attended by over 1,000 persons in the Cody City Park. COMPANY INCREASE 1969 PRO FITS Cy Kirk and Max R o y , v ic e p residen ts o f L a S a lle National Bank, C h ica g o, are prepared to a s s is t you and your bank in planning in creased profits for 1969. Whether it is an a n aly sis of your bond p ortfolio or a c o s t study o f your general banking s e r v ic e s , L a S a lle N ational Bank has the fa c il ities to serve your every n eed. C all Cy or Max today at (A rea C ode 312) 782—5200 for immediate action. No. 1175 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 50^ per copy, $6 per year. Second cla ss postage paid at Des Moines, Iowa. Address all mail https://fraser.stlouisfed.org subscriptions, changes o f address (Form 3579), manuscripts, mail items to above address. Federal Reserve Bank of St. Louis Y V Y