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

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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-

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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
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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

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of Commerce
There are so many ways we can help you
That's why over half the banlcs in Iowa are
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CEDAR RAPIDS, IO W A 52401

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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.

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C ALCU LA TO R S
B efore you buy look at the new SONY
E lectron ic C alculator. It’ s portable
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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
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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

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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

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