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— ------ ---------------;------ -r -T --------------|g--------1------ ^ Nit i Oldest Financial Journal West o f the Mississippi r n xm m Ê Ê M Ê Ê S k ... .......; ________ '-■■■■"• '-■ - No. 1071 Des Moines, lowa Short-Term Rates to Continue Up à % <4 i We are speedily moving closer to the climax of a financial storm, warned Henry Kaufman, partner and economist of the national in vestment firm of Salomon Brothers & Hutzler. Speaking at the Business Out look Conference of the University of Washington, Dr. Kaufman said, “ This trend is already reflected in the high level of long-term in terest rates and will be climaxed by a further increase in short-term rates.’ ’ Long-term rates are rapidly moving close to their peaks, ex plained the Salomon Brothers & Hutzler economist, but because of the need to defend the dollar and prospective domestic economic and financial developments short term rates will increase further. “ I suspect that three-month bill rates may rise in the next few months to a range of 5^4% to 6% as compared with nearly 5% to day,” he said, adding that the peak In corporate bond yields may be around 7% for call protected utility issues. The recent increase in the Federal Reserve’ s discount rate from 4% to was an effort to defend the dollar and was a result of the devaluation of sterling and the failure of Congress to pass V i https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the surtax, according to Dr. Kauf man. However, he stated, even without the new need to raise short-term rates for the defense of the dollar, it would be difficult to hold down the rise in these rates in early 1968 when a sub stantial increase is expected in business activity. “ Underlying these economic demands will be very substantial financial demands from business corporations, the Federal Govern ment and municipalities. If the economic forecast is correct, the demand for bank funds will be exceptionally strong and difficult to satisfy,” he said. “ Consequent ly, the trend toward higher short term rates seems inevitable.” This movement towards higher short-term rates, Dr. Kaufman said, will speed-up the disintermediation process in which funds normally placed in deposit institutions are invested in higher yielding securi ties. A perceptible moderation in savings flows to deposit insti tutions is now becoming evident, according to the economist who added, “ savings and loan deposit flows slowed further in October and fragmentary reports of thrift institutions suggests a more de cided slowing in November.” In addition to this factor, the high December 18,1967 level of long-term rates in recent months is contributing to the substantial curtailment in mortgage financing. Long-term rates have been subjected to considerable bearish expectations, and the push toward higher short-term rates will direct deposit funds to other long-term borrowers. Also, there may be of ficial intervention to cut short another credit crunch. B U L L E T IN S ... BURLINGTON, IOWA: Ernest A. Kenney, Jr., executive vice pres ident of the Burlington Bank and Trust Company, has accepted an executive position with the Pioneer Bank of Arizona in Phoenix. CLEAR LAKE, IOWA: Kenneth L. Bales has been named vice pres ident of the Community National Bank. He has been with the Old Dominion Bank, Arlington, Va., for the past 10 years. N ATIO N AL NEWS CHICAGO: Included among 22 pro motions at the American National Bank and Trust Company were William O. Kurtz, Jr., Milton J. Hayes and Ira Frank, Jr., named (Continued to back page) ; '; i and hearing was December 14. the Security National Bank personal service to every correspondent. Personally! SECURITY NATIONAL BANK Sioux City, Iowa Federal Building. Address is now 701 Federal Building, 210 Walnut Street, Des Moines. C H R IS T Y ARM STRO N G LE O KANE LEO SCH LU ETER ‘WE HAVE WHAT YOU WANT in a correspondent bank’ american trust and sa v in g s b an k 9TH AND MAIN, DUBUQUE, IOWA MEMBER: FDIC • FRS IOWA NEWS ADEL: Dallas County State Bank has advanced George Merriam from vice president and cashier to s e nior vice president. Leland Good rich is the new cashier. Lee Struble of the Redfield office has been named an assistant vice president. ATLANTIC: The Whitney Loan and Trust Company is constructing a new building. Completion is sched uled for next summer. CONRAD: The First State Bank of Conrad plans to up its capital from $50,000 to $100,000. CRAWFORDSVILLE: Open house was held by Peoples Savings Bank Saturday following remodeling. DES MOINES: Bernard Kersey, member of the computer sales staff of the Iowa-Des Moines National Bank, has been named assistant cashier. DES MOINES.: Dean R. Prichett has been elected president of the Federal Home Loan Bank board of Des Moines. He succeeds J. M. Martin, retired. DES MOINES: The U. S. Savings Bond office has moved to the new https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HUBBARD: A new addition, which will nearly double to space for Security State Bank is underway. Completion will be this spring. ZEARING: Controlling stock in the Tri-County State Bank has been sold by W. H. Brown to Tri-County Insurance Agency, Inc. of Zearing. Principal owner of the corporation is John G. Edge of Baxter. Mr. Edge will assume the office of president of the bank, succeeding Mr. Brown, who will continue as a director. William E. Brown has been advanced to executive vice, pres ident from cashier. DaleE. Tisdale has resigned. Mr. Edge will continue to live in Baxter where he is cashier of the State Savings Bank. Negotiations were handled by Richard Newlin of Bank Investors, Des Moines. scheduled for LINCOLN: Funeral services were held last Tuesday for Thomas J. Waldo and his wife, Mary, at West minister Presbyterian Church in Lincoln. Mr. Waldo was vice pres ident of the National Bank of Com merce in Lincoln. The couple was killed Friday, December 8 when their auto and another car collided on Highway 136 near Alma, Nebr. Mr. Waldo was a former president of the Republican Valley Bank, Orleans. LISCO: William K. Vogler, former assistant cashier of the Bank of Aspen (Colo.), has joined the Lisco State Bank as cashier. OMAHA: Jesse J. Zimmerman has joined the correspondent depart ment of the United States National Bank and has been named an as sistant cashier. He was formerly executive vice president and a director of the First National Bank, Malden, Mo. VALENTINE: First National Bank has advanced Ralph May from vice president to executive vice pres ident and has added Morris A. Johnson as a vice president. He was formerly an examiner in Calif ornia. WALTHILL: Construction on the new building for First National Bank is nearing completion. Jim Rossiter, president, will announce a grand opening date soon. MINNESOTA NEWS HILDRETH: Over 150 bankers and 500 area residents visited the State Bank of Hildreth during an open house, December 8 and 9, ac cording to George Soker, president. The bank recently completed an extensive remodeling. ADAMS: VanceTorgerson has been named president of the Farmers State Bank, succeeding his father, the late N. V. Torgerson. Robert Hanson, former cashier of the Root River State Bank, Chatfield, has joined the Adams bank as cashier. Gordon Klaudt has been advanced from cashier to vice president. KEARNEY: Application for a char ter for Crossroads Bank, 2120 First Avenue has been withdrawn. Ap plication was made September 21 ALBERT LEA: Charles H. Meislahn has been named assistant vice president and manager of the installment loan department of the NEBRASKA NEWS CHILES & COMPANY Member, Midwest Stock Exchange M U N IC IP A L A N D C O R P O R A T E B O N D S LISTED, U N L IST E D A N D L O C A L S T O C K S 412 Farm Credit Building, Omaha, Nebraska 68102 Phone 346-6677 * LINCOLN ...Expert Administration o f Employee Profit Sharing Trusts FIRST NATIONAL BANK & TRUST COMPANY OF LINCOLN 12th & N S tr e e t • L IN C O L N , N E B R A S K A • Member: F .D .I.C . 4 Freeborn National Bank. He was formerly with the First National Bank, Mankato. Both banks are affiliates of the First Bank Stock Corporation. Â i ALEXANDRIA: Open house was held last week by the Alexandria State Bank to honor George Buse ti er, who has retired after 53 years in the banking business. Joining the bank in 1936, he served as its president since 1946. BLOOMINGTON: Donald G. Pul len has been named assistant cash ier and manager of the installment loan department of thè, First Bloom ington Lake National Bank. He was previously with the First Se curity State Bank of St. Paul. DULUTH: First American National Bank has produced a long-playing stereo record entitled,'“ The Voices of Christmas’ ’ to commemorate the 10th anniversary of its Christmas Choral series. The record features the voices of the Duluth Cathedral, and local high school choirs. Profits from the records will be distributed among the choirs. * i i ELY: An “ oral presentation” was conducted in Washington, D.C. on December 6 on the proposal by Northwest Bancorporation to pur chase First National Bank, Ely. Representatives from the Indepen dent Bankers of Minnesota and the Independent Bankers o f America contested the purchase through their attorney, Horace R. Hansen. Eldridge L. Peters, Hastings, pres ident of the Independent Bankers of Minnesota, attended along with other prominent independent bank ers. A final decision on the pur chase is expected to be made by the Federal Reserve Board within the next two or three weeks. HINCKLEY: A majority interest in the Farmers and Merchants State Bank will change hands January 1. R. A. Nelson, president, has sold his stock to Rudell Oppegard of Twin Valley. Mr. Oppegard is president of the Twin Valley State Bank. MILACA: Robert A. Buss has been named vice president of the First National Bank. He has been ex ecutive vice president of the First National Bank, Blooming Prairie. MINNEAPOLIS: Five officers of the First National Bank have been promoted to assistant vice pres ident. They are: Wallace Blomquist, Warren T. Plante, George C. Pul len, Donald C. Haagenson and Ross B artz. OTISCO: Einer Iversen has been named to the board of directors of the Otisco State Bank. ST. PAUL: John J. Pierson has been named resident manager of the St. Paul office of Dain, Kalman & Quail, Inc. SOUTH DAKOTA NEWS ABERDEEN: Ronald Sonnenfeld has been promoted to assistant cashier of the Aberdeen National Bank. He has been with the bank since March, 1964. ALEXANDRIA: Nearly 500 area residents attended the recent open house held by the State Bank of Alexandria in its new Spencer office. any time after January 4 if the Department of Justice does not move to block it. Total deposits for the newly merged bank would be over $123 million. COLORADO NEWS COLORADO SPRINGS: Controlling stock in the Colorado Commercial Bahk will be sold “ around the first of the year” to Frederick M. Farrar, Colorado Springs and Pueblo business man, according to an announcement by Frank D. Arnold, president, who will con tinue as president. Mr. Arnold also announced that the bank will build a new $1 million banking structure. It will be of antique brick, featuring an arch design. The bank has deposits of $13 million. DENVER: A young bandit robbed the Colorado State Bank of $4,000 December 4. Bank officials said the robbery was the fourth in 10 years for the bank. DENVER: Nationwide Data Trans mission Service, a national hook up of compatible data-transmission equipment, will be introduced to Denver and the Rocky Mountain Area on January 1 by the Denver U. S. National Bank. PARKSTON: Gene Schnose, a se nior examiner in the state banking department from Canistota, has joined the State Bank of Parkston as cashier. SIOUX FALLS: The Comptroller of the Currency has approved the merger of the American National Bank, Rapid City with the National Bank of South Dakota at Sioux Falls. NBSD, the charter bank for the merger, is an affiliate of First Bank Stock Corp., Minneapolisbased holding company. The merger can be effected Always the First to Serve You! i First National Bank o f Omaha 16TH & FARNAM - OMAHA, NEBRASKA Member Federal Deposit Insurance Corporation •K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Carl K. Schieck, president of the Pacific National Bank of San Fran cisco, have announced that their respective banks’ shareholders have approved a merger agreement between the two institutions. Under the agreement, the merged bank will be known as Security Pacific National Bank. I FRANK S I B E R T .... gm z ■ I A GOOD MAN j^ TO KNOW A H WHEN y o u N E E D S PEC IA L H E LP Omaha, Nebraska NEW YORK: Jerry V. Jarrett has become vice president and officer in charge of the midwest division of Marine Midland Grace Trust Company of New York. He was previously the bank’ s midwestern representative with the title of assistant vice president. Member FDIC N A TIO N A L NEWS (Continued from page one) senior vice presidents. Robert O. Walcott, W. David Milligan and William J. Davis were named as sistant vice presidents. CHICAGO: Richard H. Wayne, vice president of the correspondent banking division of Harris Trust and Savings Bank, will retire January 31, after more than 40 years with the bank. LOS ANGELES: Frederick G. Lark in, Jr., president of Security First National Bank, Los Angeles, and ROCKFORD, ILL.: Robert J.Drexler has been elected executive vice president of the Central Na tional Bank and Trust Company, effective January 1. Mr. Drexler comes to the bank from the Bank of Hillside, Hillside, 111., where he is president. WASHINGTON, D.C.: K. A. Randall, chairman of the Federal Deposit Insurance Corporation, has an nounced the appointment of S. Rex Lewis of Provo, Utah, as general counsel of the corporation, effec tive immediately. NORTH DAKOTA NEWS BOTTINEAU: Grand opening was J</RK Çross Co ¥ BANK PLANNING Waterloo, Iowa m held recently by the State Bank of Bottineau in its new building. The bank operated for many years in Souris and recently moved to Bottineau. VALLEY CITY: Dennis Dalziel, former assistant manager of the Madison branch of the Northwest ern National Bank of Sioux Falls, has been named executive vice president and manager of the Farmers and Merchants State Bank. The bank was authorized to move from Dickey to Valley City on August 28, and temporary quarters will be established in Valley City early in 1968. WANT ADS Rates 25 cents per word per insertion. Minimum: 12 words. NORTHWESTERN BANKER 306 15th St., Des Moines, Iowa $10.00 IS The price of a personal, air mail subscription to the Crouse Farm Business Reports. They help keep loan officers and ag representatives ahead of the changing farm picture. Samples available. Farm Business Council, Inc., P.O. Box F, Urbana, Illinois 61801. WANTED NCR Posting Machine —to be used for posting general ledgers —plus at least two bjp.rs. Contact Cozad State Bank, Cozad, Nebraska 69130. (Area Code 308) 784-2000. MR.BANKER If you need help to liquidate the mortgaged property or inventory that you were forced to take pos session of —call Forrest Griffith at 3 0 3 - 384-2544 COLLECT. CENTRAL NATIONAL BANK AND TRUST Member Federal Deposit Insurance Corporation COMPANY BANKS WANTED Hard-working staff of energetic Chicago Loop bank desires to serve more banks in the midwest better than they have ever been served before. This is not a lip-service ad. We’ ll perform! Call Max Roy in IowaCity at 338—5224. Or phone us direct at La Salle National Bank, 135 South La Salle Street, Chicago, 111. 60690. (Area code 312) STate 2—5200. Complete trust service's. Member of Federal De posit Insurance Corporation, of. course! k M 4 À X & M 4 À .4 . IT, No. 1071 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 50tf per copy, $6 per year. Second c la ss postage paid at D es Moines, Iowa. Address all mail subscriptions, changes o f address (Forms 3579), manuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis *
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