Full text of The Northwestern Banker : August 5, 1968, No. 1111

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Urge More Aggressive Farm Loan Policies
“ Credit needs of American
farmers are likely to exceed the
combined cash requirements of
the Viet Nam war and the anti
missile by 1980!”
This is the statement made
by M. E. Wirth, Washington State
University economist, before
the second annual Rural Bank
ing School held in Morris, Min
nesota, last month. Bankers from
Minnesota, North Dakota and
South Dakota were in attendance*
Mr. Wirth explained his state
ment as follow s:
“ Farm credit needs are likely
to reach $125 billion within 12
short years and rural bankers
can get a big share of the busi
ness if they will adopt more
aggressive lending p olicies, and
if they will organize to obtain
access to national financial
markets.
“ Overly cautious loan poli
cie s, failure to pay competitive
rates to attract savings de
posits,
and
the insistence
on unrealistically low loan-todeposit ratiòs are obstacles to
farm credit expansion for many
unit banks.
“ Some bankers are also hand
icapped by too little understand

ing of the new farm managerial
class and the advanced tech
nology powering today’ s ef
ficient farm operations.
“ Today’ s farm manager sub
stitutes sophisticated capital
for land and labor to an increas
ing degree. Capital investments
responsible for much of the
mushrooming credit needs in
clude mechanized or automated
equipment,
feed,
livestock,
fertilizer and other farm chemi
cals.
“ Unless farmers can obtain
credit at what they consider
reasonable rates, they can turn
to other options.
“ The rural banking system
may be excluded from the farm
credit field to a large extent
where such processes as verti
cal integration and contract
farming become commonplace.
“ Leasing
equipment
and
machinery, instead of buying
it, is another way farmers can
reduce credit requirements. The
remarkable increase in yields
and output per manhour over the
past 18 years is the product of
a combined technological and
managerial revolution.
“ The process has been ac

companied by a marked growth
in farm assets, but little or no
increase in farm income. Pro
duction assets per farm in
creased from around $17,000
in 1950 to over $73,000 in 1967.
Much of this growth is ac
counted for by increases in the
value of farm real estate —up
60% during the last 10 years.
“ Total value of farm assets
for the nation as a whole, in
creased
about fivefold from
1940 to 1967. Nearly $270 bil
lion in assets were employed
in farming in 1967, in spite of
the exodus from the farm of
some 4.8 million people since
1962.
“ Even for the more efficient
who have remained in farming,
income for family spending has
remained low in spite of mount
ing output because of forced
savings on the part of farm
families.
“ They have had to plow in
come back into the farm to in
crease efficiency and reduce
per-unit costs. This situation
has resulted, according to a
recent study, in an average net
worth for farm families nearly
five times greater than the
(Continued on Page 6)

There are so many ways we can help you
That's why over half the banks in Iowa are
— MNB correspondents
H

John Mangold
Vice President

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The 39th annual convention of
the Independent Bankers A ss o c i
ation w ill be held at the Sahara
Hotel in Las Vegas on March 17,
18, and 19, 1969, according to
Howard B ell, IB A executive secre
tary.
The 1969 convention had ten
tatively been planned for Washing
ton, D .C ., but Las Vegas was se
lected in order to obtain maximum
participation by the membership in
the convention. In 1970, the IBA
will meet in Hawaii.

Bankers Trust co.
S IX T H A N D L O C U S T , D E S M O IN E S

HOMER JENSEN

Tom Horn
John Diefendorf
Gene Hagen
These m en bring the S ecu
rity N ational B ank to their
correspondents. It's strictly
a m a t t e r o f S e c u r ity ’s
personal service. S e rv ic e
for any b a n k in g need or
problem .

Loterbour, formerly bank auditor,
cashier, and Delores McConnel,
auditor. Inez Van Sickle has been
elected the bank’ s new secretary.

SECURITY
NATIONAL
BANK
4TH AND PIERCE STREETS • SIOUX CITY

IOWA NEWS
CEDAR FALLS: The seminar on
“ Use of Computers in Investment
D e cis io n s ,” which was scheduled
for September 17, 1968, at the
University of Northern Iowa, has
been postponed. The seminar will
be re-scheduled at a later date.
CEDAR RAPIDS: The 'board of
directors of L ife Investors, Inc.,
has approved an agreement to pur
chase Gains Guaranty. The pur
chase is subject to approval of
stockholders of Gains Guaranty,
and it is expected that it will be
approved for completion by Oct
ober ||
DAVENPORT: The Federal Home
Loan Bank Board has approved an
application for First Federal Sav
ings & Loan A ssociation to estab
lish a branch at 4004 Northwest
Boulevard.
DES MOINES: The Federal Reserve
has received an application from
Bankers Trust Co. for a parking
lot office at 1552 East Euclid Ave.
(Eastgate Shopping Center).

KEOKUK: Wetherell Harrison Wag
ner McKlveen of Des Moines has
been named the architectural firm
for the State Central Savings Bank
new drive-in, walk-up facility.
Construction is to begin early this
fall.
MANCHESTER: Robert J. Lyness
of Ryan has been named to the
board of directors of the Farmers
and Merchants Savings Bank. The
bank’ s board of directors also has
created the new official position
of honorary director. O. O. Smith
has been designated as the first
honorary director at the bank, in
recognition of 27 years as a di
rector.
MITCHELLVILLE: Farmers
ings Bank has hired Robert D.
ling as cashier. He was
Bankers Trust C o .’ s mortgage
department in Des Moines.

Sav
Gul
with
loah

NEVADA: Six promotions have
been announced at the Nevada Na
tional Bank. Donald W. McHose
has been named senior vice pres
ident; LeRoy A. Hansen and DonC.
McHose, vice presidents; Keith

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SIDNEY: Joyce Moseley, who has
been employed at the Fremont
County Savings Bank since 1957,
has been elected assistant cash
ier. Delores Jenkins, who was
previously employed by the bank
for a number of years, has been
re-employed as bookkeeper.
WATERLOO: Dr. Russell S. Ger
ard has been appointed to the
board of directors of Peoples Bank
and Trust Company, and Rowland
K. Sverdahl has been elected ex
ecutive vice president. Mr. Sver
dahl joined the bank in 1952 and
was formerly a vice president.

NEBRASKA NEWS
LINCOLN: Attorneys for Duane
Earl Pope have been allowed until
August 12 to file a memorandum
bearing on the prospective new
sentencing of the convicted bank
robber-killer. The Pope case was
returned to the Lincoln Federal
District Court after the U. S. Eighth
Circuit Court of Appeals in St.
Louis carried out a U. S. Supreme
Court order and vacated the death
sentence imposed on Pope in
Nebraska.
OMAHA: Tom W. Allen has been
named assistant trust officer at
the First National Bank of Omaha.
He was formerly employed with
First Nebraska Securities, invest
ment banking firm.
OMAHA: First National Bank of
Omaha will hold its 10th Annual
B eef Cattle Conference and Forum
in Omaha on Thursday, Septem
ber 12.

MINNESOTA NEWS
ALEXANDRIA: Herman Felt, vice

Two electronic control panels "direct" driveup traffic at First National Bank, Mattoon,
III.

'We couldn't

Drive-up customers approach panel, stop
and wait for directions to flash onto
screen which will direct them to an
available drive-up window.

Customers, directed by control panels, move
easily and quick'y to drive-up window to which
the sign instructed them to go.

effectively handle peak traffic

Says
Melvin Lockard

President
First National Bank
Mattoon, III.

Traffic does "stack up" during peak periods (particularly on Fridays) but
BANKontrol effectively directs customers to a drive-up window as soon as it
becomes vacant. Thus, waiting time during peak periods is minimized.

Mr. Lockard agrees that drive-up customers of his bank are better
served by the BANKontrol system, which "directs" customers to each
of the bank's four drive-up windows. "W e simply couldn't handle
drive-up customers efficiently during peak periods," he says, because
windows No. I and No. 3 would remain idle part of the time, blocked
by confused customers, if these customers were not directed by
BANKontrol.
"W e can't do away with our peak periods (particularly on Fridays
when payroll checks are cashed), but we can and have made it more
convenient for our customers," says Mr. Lockard, "by speeding them
through our drive-up facilities.1' The utilization o f BANKontrol by Mr. Lockard’ s bank
is not unique. Other banks also have experienced a
m ore efficient flow o f traffic when using BANKontrol.
W e can document other instances where banks are able
to handle a drive-up transaction every 60 seconds with
BANKontrol. May we show you how BANKontrol can
help solve a traffic problem at your bank?
Diagram above shows traffic pattern in
drive-up at First National Bank, Mattoon,
III. Traffic enters in two lanes from street at
left. Each lane can accommodate six autos.
Two lanes, plus four windows, thus puts a
total of 16 autos in the system at one time.
Drive-up customer approaches control panel,
stops, waits for instructions to move to any
one of four windows. Without BANKontrol,
windows No. I and No. 3 would not be fully
utilized, thus causing slowdown in customer
service.

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ELECTRONIC TRAFFIC CONTROL, INC.
4331 N. Elston A ve., Chicago, III. 60641
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FIRST NATIONAL BANK & TRUST COMPANY OF LINCOLN
1 2th

president and cashier at the A lex
andria State Bank, has been pro
moted to executive vice president.
H. R. Rogers, who has been with
the bank since February, 1967, as
assistant v ice president, has been
elected
vice
president. Keith
Goulet, formerly assistant cashier,
has been named cashier.
EDINA: Warren R. Hinze, formerly
president of First State Bank of
St. Paul, has been elected pres
ident and director of the First
Edina National Bank. He su cceeds
Eugene Oredson, who will become
chairman of the bank’ s board of
directors, until his retirement in
1969.
MINNEAPOLIS: Ernest J. Taylor,
former manager of the Industrial
Credit Company office in Mankato,
has been named vice president in
charge of installment loans at
National City Bank.
MINNEAPOLIS: Thomas C. Jackson, formerly v ice president and
director of the First EdinaNational
Bank, has been elected president
and director of the First Produce
State Bank, effective August 15.
He su cceeds the late Roland L.
St. Clair, who was president of
the bank from 1962 until his death
on July 16, 1968.
MINNEAPOLIS: James M. Dain, 80,
founder and honorary board chair
man o f Dain, Kalman and Quail,
Inc., died July 29 at Abbott Hos
pital here.
ST. ANTHONY: Dan A. Burrill has
been elected president of the
State Bank of St. Anthony, su c
ceeding Allan R. Burrill, who has
been named chairman of the bank’ s
board of directors. The new pres
ident will continue as an executive
officer at the bank. He is also
v ice president and a director of
the State Bank of Burrill, Minn.,
where Allan Burrill is president
and a director.
BURGLAR
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N S t r e e t • L IN C O L N , N E B R A S K A • M em ber: F .D .I.C .

ILLIN O IS NEWS
CHICAGO: Exchange National Bank
has made application to the Fed
eral Reserve to establish an over
seas branch in Tel Aviv, Israel.

Y O U R STATE BANKERS A S SO C IA T IO N
O F F IC IA L SAFE, VAULT AN D
T IM E LO C K EXPERTS

F. E. DAVENPORT & CO.
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elected
officer.

NORTH DAKOTA NEWS
ALAMO: The new American State
Bank recently held a grand open
ing in its new $20,000 building.
The bank has been operating its
station here in a rented camping
trailer since last winter.
GRAND FORKS: Goodwin Helseth
has been elected assistant cash
ier of the Community National
Bank. He joined the bank in Febru
ary, 1967, after being associated
with the First National Bank of
Fargo.
TURTLE LAKE: The State Bank
ing Board has approved application
of the Bank of Turtle Lake to open
a paying and receiving station at
Butte.

SOUTH DAKOTA NEWS

assistant

DENVER: Robert L. Magnie has
joined the staff of the Denver U. S.
National Bank in the petroleum and
natural resources section.

DENVER: Charles A. Baer, s e
nior vice president and trust of
ficer of the Colorado National
Bank, has been named executive
vice president and director of
Colorado CNB Bankshares, Inc.
Gilbert J. Mueller, director of the
Colorado National, has been e le c
ted to the CNB Bankshares board.
Other new officers of CNB Bankshares are Harold Kountze, Jr.,
secretary, and Kenneth Nording,
treasurer. Harold E. Angelo has
been named to the position vacated
by Mr. Baer. David C. Wilhelm has

MILLER: Carl Johanson has been
elected executive vice president
and cashier of the Hand County
State Bank. He has been cashier
at the bank for several years.

Call
Jay Bordewick
for

COLORADO NEWS
COLORADO SPRINGS: Nelson A.
(Buz) Rieger, assistant vice pres
ident at the Exchange National
Bank since 1964, has been e le c
ted v ice president in the com
mercial department at the bank.
Eldon G. Pritz, executive vice
president and general manager of
the Intermountain Mortgage Com
pany, recently acquired by the
bank, has been elected vice pres
ident and mortgage loan officer.
Norman F. Peterson, assistant
manager o f Intermountain, has been

mortgage loan

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been elected a director of Colorado
National. Mr. Kountze also has
been named a vice president and
cashier on the bank staff and Dale
Browning an assistant vice pres
ident and assistant cashier.

tired vice president of the First
National Bank of Lander, has died
in Bishop Randall Hospital, fo l
lowing a three-week illness. He
was a native of Indianola, Iowa,
and had been in banking here for
46 years.

MONTANA NEWS
BUTTE: John J. Burke, Sr., 77,
chairman of the board of the Metals
Bank and Trust Company, has died
in a Butte hospital. He was a past
president o f the Montana Bankers
A ssociation .

WYOMING NEWS
LANDER: Harry K. Hime, 89, re-

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Bank at the
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B e rn ie M iller
Iowa Representative

DRO VERS
NATIONAL. B A N K

off C tiic a g o
Phone (3 1 2 ) 927-7000
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CENTRAL

NATIONAL

BANK

WISCONSIN NEWS
EAU CLAIRE: The American Na
tional Bank and Trust Company
will open a new facility in Wash
ington, Wise., on August 19. The
new office will operate out of
a temporary structure until the
permanent building is finished
around the first of the year. John
Christenson will be manager of
the office. He is presently a ss is
tant cashier with the American
National here.

Farm Loan P o lic ie s .. .
(Continued from Page 1)
average for non-farm families.
“ Farm debt for the nation’ s
farmers today totals nearly $50 b il
lion, about half in real estate
debt and half in non-real estate
debt. Judging by the current growth
rate, this figure could be $125 b il
lion by 1980.
“ Since much of the money farm
ers borrow on long-term real e s
tate mortgage is paid off in the
short period of 10 to 12 years, it
makes sense to give more atten
tion to management sk ills and a
proven record.
“ Real estate loans have been

AND

TRUST

Member Federal Deposit Insurance Corporation

COMPANY

traditionally based on the idea of
a typical operator of a typical
farm. But for today’ s typical oper
ator, the loan may be too high;
for the efficient operator, it Could
be much too low.
“ More and more banks are hiring
agricultural advisers to handle
credit to farmers, and this measure
is the first logical step in prepar
ing to expand future farm credit
operations.’ ’

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La Salle National Bank, Chicago,
offers brief, con cise, informative
and interesting stock market reports
every hour on the half hour b e
ginning at 9:30 a.m. as reported by
Ed Cooper direct from the board
room of Hornblower and Weeks—
Hemphill, Noyes. These reports
can keep you and your customers
abreast of the changing market.
Tune in WGN radio, 720 on your
dial—a 50,000 watt, clear channel
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(Area Code 312) STate 2-5200.

No. 1111 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Iowa 50309. Subscriptions 50tf per copy, $6 per year. Second cla ss postage paid at Des Moines, Iowa. Address all mail
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