Full text of The Northwestern Banker : December 1964, 70th Year, No. 929

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Federal Reserve Bank of St. Louis

Safekeeping service . . . front MNB
A recent continuing survey by Northwestern B an k
er shows “ Safekeeping” to be second on a list of
services important to country banks. M N B ’s securi
ty facilities are among the nation’s most advanced,
and our massive new vaults, like the one above, are
the truly safe place for your bank securities. For
peace of mind, enter your portfolio for safekeeping
at M N B . Service like this is one big reason why half
of all Iowa banks are M N B correspondents.

So many ways we can help you .

Me/icWifc Hakond
C E D A R R A P ID S

THE

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Federal Reserve Bank of St. Louis

F U L L S E R V IC E

BANK

FOR TH E

MEMBER F.D.I.C.

BANKS

IO W A

To our many friends in banking...

meßßy chßistmas

happy new yeaR
5

NORTHERN

RUST

5 0 SO UT H LA SALLE ST RE ET
C H IC A G O , IL L IN O IS
FI 6 - 5 5 0 0

60690

• M E M B E R F. D. I. C.

BANK

No. 929. Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription 50c
per copy, $4 per year. Second class postage paid at Des Moines, Iowa. Address all mail (subscriptions, change of address, Form 3579, manuscripts,
mail items) to above address.

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Federal Reserve Bank of St. Louis

THERE ARE STARS IN THE SKY AS WELL AS THUNDER AND LIGHTNING

There is goodwill in the hearts of men at Christmas. There’s a warm welcome for the neighbor—a
deep desire for friendship between nations —a determination to achieve lasting peace. »« Clouds
scud along the horizon, sometimes building up to frightening thunderheads. Angry voices thunder
without reason —and threats, like lightning, break and crash over the people’s heads. »« Yet the
eternal stars are there —stars of Hope, of Faith, of L o ve-n o w dimmed or hidden by the clouds
—now breaking through with a clarity and brilliance and strength that will not be denied. »« May
these stars be seen and followed by the wise men of all nations. May they light the path to
peace. That is the Christmas prayer of the people.
B A N K E R S

T R U S T

C O M P A N Y

N E W

Y O R K

CHRISTMAS 1964 / Once more we reprint this now familiar prayer of oars, exactly as it was written seventeen years ago.
Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

New Travel Service

A new travel service called TIP
PACKS has been introduced nation
wide by Manufacturers Hanover Trust
Company, New York. TIP PACKS is
a pre-packaged kit of foreign currency
in “small change” denominations, con
taining approximately $10 in small
bills and coins, to facilitate travel from
one country to another. The bank is
offering a variety of 15 different cur
rencies.

Oldest Financial Journal West of the Mississippi

for your DECEMBER, 1964, readins
70th Year

No. 929

EDITORIALS
22

Across the Desk from the Publisher

FEATURE ARTICLES

MODEL selects a pre-packaged kit of
foreign currency from among TIP PACKS
available for 15 different countries.

After Manufacturers Hanover re
searched and tested TIP PACKS, it
t
was added to the bank’s list of more
than 80 services. Demand for it grew
immediately from a “bon voyage” type
of gift to quantity purchases by busi4 nessmen traveling abroad. Because
of its proven convenience and accept
ance, the New York bank has now
made TIP PACKS available nation
wide through its correspondent banks.
Each TIP PACK contains, in addi
tion to the actual money, a folder
showing pictures of coins and de
scriptions of major bills, so the trav
eler can familiarize himself with the
look and feel of the currency before
exchanging his U. S. dollars or trav
elers checks. A conversion table show
ing the exchange rate also is a useful
money-saver.

*■

Each TIP PACK lists the vital sta
tistics on tipping and tells what is
considered the correct amount to tip
porters, waiters, bell hops, taxi driv
ers and others in each foreign coun
try.
Manufacturers Hanover TIP PACKS
are available for Austria, Belgium,
Denmark, The Netherlands, England,
France, Germany, Greece, Italy, Mex
ico, Norway, Portugal, Spain, Sweden
and Switzerland. Correspondent banks
may obtain TIP PACKS for their cus
tomers directly from Manufacturers
Hanover in New York.

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Federal Reserve Bank of St. Louis

Effect of General Election on Nation’s Fiscal Policy— Reno Odlin

Frontispage— Christmas Scene

29
30

Bank Sells Money for Gifts
What Businessmen Think o f Banks— A N o r t h w e s t e r n B a n k e r
Survey
Live Stock National Announces Merger at Conference—
Malcolm Freeland
Management Consultant’s Role in Improving Banking Operations
— Ed Anson and J. D. Batten
Estate Planning for Farm Owners— Theodore D. Brown

32
33
34
36
38

Banks Keep Prime Rate at 4 % %
1st o f Chicago Speakers Predict Steady Business for ’65—
Larry Nothwshr

STATE BANKING NEWS
Minnesota
Twin City
South Dakota
North Lakota

News
News
News
News

Colorado News
W yoming News

49
51
55
57
58
60

61
63
64
70
75
80

Montana News
Nebraska News
Omaha News
Lincoln News
Iowa News
Des Moines News

OTHER FEATURES
89
90
90
90

The Bankers’ Market Place
In the Directors’ Room
Index of Advertisers
Convention Calendar

NORTHWESTERN BANKER
306 15th S treet, Des Moines, Iowa 50309, Telephone (A rea Code 515) 244-8163
Chairman
Clifford De Puy

Publisher
Malcolm K. Freeland

Editor
Ben J. Haller, Jr.
Associate Editor
David L. Lendt

Associate Editor
Larry W . Nothwehr
Advertising Assistant
Doris Johnson

Circulation Department
Lena Sutphin

Field Representative
AI Kerbel

Field Representative
Joe M. Smith

Auditor
Bertha Soderquist
Field Representative
Paul Masters

Frank P. Syms, Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126

Northwestern Banker, December, 1964

ita n h evs h u i it’ll to A tte n d
Clinic on Cfff/ C on tra ctin g
annual Midwestern “Quickie”
T HE
W o r k s h o p , sponsored by the

American Poultry & Hatchery Feder
ation at the Hotel
Fort Des Moines
in Des Moines,
Iowa, Friday and
Saturday,
Janu
ary 8-9, includes
one day devoted
to a “ Clinic on
Egg Contracting.”
Members of the
banking
profes
sion in the twelve
Midwestern states
are invited to attend.
The clinic has been prompted by a
growing feeling among midwestern
poultry industry members that the
key to holding ground in the competi
tive regional egg production picture,
insofar as midwesterns are concerned,
rests with contract production.

Charles Meier, Nashville, 111., hatcheryman and president of the American
Poultry & Hatchery Federation, states
that the midwest has been losing
ground because producers and local
business communities as a whole have
been slow to look upon egg produc
tion as a commercial venture worthy
of saving.
“Egg money is still important
money,” declares Mr. Meier. “Further
more, it is important to the midwest
ern agricultural economy. The poul
try industry last year meant gross
income to farmers of $3.4 billion. De
spite all the attention focused on the
spectacular growth of the commercial
broiler industry and large scale tur
key farming, the egg industry ac
counted for over 55 per cent of that
$3.4 billion figure.
“Further, the midwest’s twelve
states accounted for over 47 per cent
of the national egg production. Un-

HAV E T H E Y COME Y E T ?
People like to buy things. They
particularly like to send away for
items and then eagerly await their
arrival in the mail. Firms specializ
ing in direct mail items are acutely
aware o f this and capitalize on it.
Such purchases are not confined to
young people, as one might suspect.
Adults indulge themselves more
frequently than do youngsters be
cause they have m ore extensive
buying power. If the items offered
are attractive, represent g o o d value,
and provide convenience in use,
prestige or other customer benefits,
they sell astonishingly well by this
method.
Last year som e eight thousand
banks used ten million statement
enclosures illustrating and offering
D eLuxe Personalized Checks to
their checking account customers.
The advertising was particularly
effective for these banks. Each o f
the colorfu l advertising pieces
featured an order blank for 200
Personalized Checks. In sending
this order to the bank, the customer
was not required to enclose pay

Northwestern Banker, December. 1964

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Federal Reserve Bank of St. Louis

ment or accept C .O .D . charges for
the purchase. Instead, each account
was debited for the cost o f the
checks. The checks were mailed
directly to his hom e or office.
This simple m ethod o f creating
new custom ers fo r Personalized
Checks is effective yet inexpensive
for the bank. The enclosures and
lobby display signs are furnished
without charge. The bank bears
only the cost o f inserting the
advertising in the check files for
mailing with customers’statements.
T his basic approach to selling
works even better now than it did
twenty-five years ago when we
were struggling to gain acceptance
for the Personalized Check concept.
W e have an attractive selection o f
new advertising pieces in full color
available fo r your use in any
quantity desired. W hy not give
your customers an opportunity to
enjoy sending away for Personal
ized Checks... and to eagerly await
their arrival. The service is excellent
so the wait will be short.

fortunately, this is a smaller percent
age than has prevailed in former
years.
“We can hold and perhaps regain
ground through contract production.
This means we need to work closely
with our lending institutions and
they need to learn more about the
egg business. We are not going to
hold our egg business if we talk in
anything other than local production
‘pods’ that provide enough volume to
cut marketing costs.”
The program for the clinic features
speakers from all over the midwest
and includes several from financial
institutions.
The program starts at 9:45 a.m. on
Friday morning, January 8. The en
tire program on Saturday is devoted
to the “Clinic on Egg Contracting.”
At 2:05 p.m., a panel of four men will
discuss “ Sources of Credit.” Partici
pants will be: Donald Murray, Farm
ers Independent Credit Corporation,
Lake Park, Iowa, representing agri
cultural credit corporations; Wayne
O’Neal, executive vice president, First
National Bank, Gibson City, 111., rep
resenting commercial banks; Charley
Bartley, Boone Valley Co-op, Boone,
Iowa, representing production credit
associations, and Joe Dodgen, Agri
factory Corporation, Humboldt, Iowa,
representing the industry.

New Sales Representative
Earl T. Klein, vice president-sales
director, Bank Building and Equip
ment Corporation of America, ann o u n c e s that
Jamie G. Cannon
has j o i n e d the
firm’s sales staff.
Mr. Cannon re
ceived a bache
lor’s degree in arc h i t e c t u r e at
Washington Uni
versity, St. Louis,
and was formerly
a principal in the
j. c a n n o n
£rm 0£ Cannon,
Herman & Field, Inc., architects and
planners. He will serve Bank Build
ing Corporation’s Mid-Continent Divi
sion from St. Louis headquarters.

112th Thorp Office
Thorp Finance Corporation has es
tablished its 112th office with the open
ing of a branch at Marion, Iowa.
Located at 1246 7th Avenue, the of
fice will operate as Thorp Credit Inc.
Walter Crook is manager.
The branch is the 12th in Iowa for
Thorp which also has 82 offices in
Wisconsin, 18 in Minnesota and one
in Missouri.

The Union National Bank of New Albany. Ind.

. . . b y our Bank Building Consultant and his team /'
says Mr. Wilcox. “ It’ s a relief to work with people who know our
business, who don’t have to be familiarized with bank operations.
We were able to concentrate on our own work. They assumed total
responsibility for every phase of our project.” You, too, can
save time, trouble and worry on your new quarters project. Talk
with one o f our Consultants. He’ll explain how we could do it for you.
MID-CONTINENT DIVISION

Ira F. W ilc o x
P resident

W rite Jack Miner, Manager, 1130 Hampton Ave., St. Louis, Mo. 631 3 9 or phone collect Mission 7 -3 8 0 0

John H u ffm a n
P ro je c t C o n s u ltan t

>
H o m e office:

113 0 H a m p to n A v e ., S t. L o u is , M is s o u r i

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Federal Reserve Bank of St. Louis

•

O f f i c e s in A t l a n t a

•

C h ic a g o

•

D a lla s

•

N ew Y o rk

•

S a n F ran c is c o

tit H t

Viete /
tACr e d it P r o b le m s

600 bank executives who ad
OVER
minister farm credit in all sec

tions of the nation attended the 13th
Annual ABA Agricultural Credit Con
ference in Memphis, Tenn., last month.
Leading the list of speakers was
ABA President Reno Odlin. Other
speakers included: John A. Hopkin,
agricultural representative and econ
omist, Bank of America N.T. & S.A.,
San Francisco, Calif.; Theodore D.
Brown, president, The Security State
Bank, Sterling, Colo.; Harold F. Brei-

myer, economist, Agricultural Market
ing Service, U.S.D.A., Washington, D.
C.; Lyle Carpenter, Mortgage Finance
Inc., Denver, Colo.; George M. Wasem,
vice president, Commercial National
Bank of Peoria, 111.; and Dr. Eugene
B. Mapel, vice president, The Chase
Manhattan Bank, New York.
Delegates expressed particular inter
est in a series of seven “bull sessions”
covering many phases of farm man
agement as they relate to banking. It
was pointed out that bankers must

be able to identify the management
capability of a farmer early. This can
best be accomplished by working with
4-H and F.F.A. groups as well as
young farm families in their commu
nities.
To work with young farmers, banks
must develop special loan programs
suitable to the needs of those with
limited capital resources.
Bankers were urged to help build
good management characteristics, par
ticularly of young farmers, by encour
aging the keeping of good farm rec
ords and the utilization of farm plan
ning, for both short, and long-range
periods. Annual crop and livestock
plans, cash-flow schedules, and budg
eting were mentioned as forward
planning tools being adopted by suc
cessful farmers. It was pointed out
that the appropriate use of these man
agement tools were excellent indica
tions of good management practices.

Live Stock Promotions
Joseph M. White and Howard H.
Beermann have been appointed vice
presidents of The Live Stock National
Bank of Chicago, Robert E. Hamilton,
president, announced.
Mr. Beermann joined the corre
spondent division of the bank in the
fall of 1962. He was formerly in bank
ing in Sioux City, Iowa. Thirty-four

Y
J .M . W H I T E

FRESH OFF THE PRESS
and yours for the asking!
If you are interested in current,

H. H. B E E R M A N N

years old and married, he holds a
Bachelor of Science Degree in general
agriculture from the University of Ne
braska and is a licensed pilot.
Mr. White was formerly an assistant
vice president with the Central Na
tional Bank of Cleveland, where for
14 years he specialized in credit and
loans.
y

a ccurate and d e p e n d a b le s ta tis

B of A Foreign Branches

tics on A rizon a — its agriculture,

Extending its direct coverage in
Central America, Bank of America has
opened a branch in Panama City. An
other office will be opened soon in
Managua, Nicaragua.
The Panama branch will be headed
by John Gonzalez, former New York
officer of Bank of America (Interna
tional), and assistant manager of the
bank’s office in Guatemala City for the
past three years.

construction, education, e m p lo y
ment, m anu factu rin g, mining,
population, retail trade, et cetera
— y o u ’ ll f i n d all the f a c t s a n d

For Your Copy W rite:

f i g u r e s in t hi s h a n d y 4 8 - p a g e

RESEARCH DEPARTMENT

booklet.

VALLEY NATIONAL BANK
P. O. BOX 71
PHOENIX, ARIZONA

Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

The Season’s best to you
from all of us
at the big bank downtown

Building with Chicago and the nation since 1863

The First National Bank o f Chicago
Chicago, Illinois •6 0 6 9 0
Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

18TH CONFERENCE—Harold G. Kuhlman, left, a.v.p., First National Bank in St. Louis,
explains to Felix LeGrand, second from left, executive mgr., Missouri Bankers Assn.;
G. H. Wilkinson, third from left, chin., State Bank of Bennett; James F. Mack, sr. v.p.,
Traders Natl. Bank, Kansas City, and William Diercks, pointing, pres., Arnold State
Bank, Arnold, Missouri, how the First National Bank in St. Louis celebrated St. Louis’
bicentennial by the issuance of its book on “ St. Louis: The First Two Hundred Years.”
The occasion was the bank’s 18th Annual Conference of Correspondent Banks held in
St. Louis last month.

9 0 0 A tte n d St. L ou is C on feren ce
900 bankers from 24 states
OVER
were guests of the First National
Bank in St. Louis last month at the
bank’s 18th annual Conference of
Bank Correspondents.
Exceptional interest was shown in
two panel discussions. “What’s Ahead
in Agriculture?” was the basis for one

of the panels, and the other panel fea
tured the question, “ Is Correspondent
Banking a Two-Way Street?”
Agriculture panel members included:
Dr. Elmer R. Kiehl, dean, School of
Agriculture, University of Missouri;
Dr. Harold G. Halcrow, head of Ag
Economics, College of Agriculture,

W hat is the Canadian
economic outlook?
The GNP in Canada this year is expected
to have grown by 8% to $46.5 billion. If
you want to help clients expand into this
fast-moving market, Canada’s First Bank
can help answer your questions.
With 940 offices coast to coast and
$4.5 billion in assets, Bank of Montreal
is at the heart of all business activity.
Our monthly Business Review will keep
you w ell-inform ed. I t ’s yours for the
asking.
For more details on the many ways
Bank of Montreal can help you and your
clients, write orvisit our nearest U.S. office.

The Bank of Montreal
supplies the answers
i

CANADA'S FIRST BANK
C o ve w C cm 4 a ..S p a m A tlu iU Ji« M

C H IC A G O : Board of Trade Bldg.
M l West Jackson Blvd.
^ e w Y o r^ * H o u s to n
S an F ra n c is c o • Los A n g e le s

950 OFFICES IN CANADA, THE 1). S., U. K., FRANCE, GERMANY, MEXICO AND JAPAN

Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

ASSETS OVER $4 BILLION

University of Illinois, and Dr. Henry y i
J. Meenen, head of Department of Ag
Economics, University of Arkansas.
Dr. Halcrow predicted that net in
come and average acreage per farm in
the United States is expected to in
crease during the next decade while
the number of young people entering
farming is expected to decrease, with
the result that a higher proportion of
older farmers will be operating at
least one-half larger acreages by 1975.
The correspondent bank panel was
made up of John M. Shonsey, execu
tive vice president and chairman, ex
ecutive committee, Omaha National
Bank, Omaha, Neb.; L. W. Henderson,
Jr., senior vice president, North Caro
lina National Bank, Charlotte, N. C.;
Hartley G. Banks, president, Columbia
Savings Banks, Columbia, Mo., and
Lawrence Keller, Jr., president, Alton
Banking & Trust Company, Alton, 111. \
Leading the discussion were Wil
helm R. Mesenbrink, senior vice pres
ident, and Carroll F. Burton, vice pres
ident of the First National Bank in
St. Louis.
It was decided that if the country
banker would select one of its corre
spondent banks as its principal corre
spondent—confide in it and make it its jr
partner—the two banks will benefit,
and banking will benefit.
The visiting bankers heard Gordon
W. McKinley, vice president of Mc
Graw-Hill, Inc., New York, take issue
with the majority of economists that
the present economic advance may
end sometime in the last half of 1965.
Mr. McKinley suggested that the rea 1
soning behind these pessimistic fore
casts is invalid, based on present
indicators and predicted that the econ
omy will continue its upward swing
y
beyond 1965.

Joins Home Office
The appointment of Ernest Gray,
Jr., C.L.U., as Agency Department Adm i n i s t r a t o r of
The Central Na
tional Life Insur
ance Company of
Omaha has been
a n n o u n c e d by
Robert H. Jordan,
e x e c u t i v e vice
president of the
c o m p a n y . Mr.
Gray will direct
all agency adver
tising and public
relations activities for the Omaha firm.
A veteran of 36 years in the insur
ance business, Mr. Gray has served
most recently as general agent in
Omaha for Republic National Life of
Dallas.

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1964

A ttu v h s "È Ê y th s" A b o u t D eb t
first of what he labeled “questionable
propositions—or myths.”
One cannot say debt in the United
States is too high, he pointed out, ex
cept when its negative effects become
unbearable and further extension of
debt becomes difficult. “ Thus,” he
stated, “in this sense total net debt is
not excessive since there is no appar
ent dearth of credit in this country
nor signs that credit as a whole is
approaching a breakdown.

TTACKING four salient myths
A
commonly expounded about debt,
Rudolph A. Peterson, president of the
Bank of America, said last month that
federal debt is not an unmitigated
evil. The question of reducing or ex
panding f e de r al debt, he asserted,
“sh o ul d not be
determined by the
absolute size of
the debt, but by
the economic im
pact that will re
sult.
“Fears w h i c h
surround the con
cept of debt,” Mr.
P e t e r s o n said,
“were not partic
R. A. P E T E R SO N
u l a rl y damaging
a centry and a half ago when most of
our forbears were a pretty independ
ent lot. Today, however, in the new
environment of essential interdepend
ence of people the proper extension
of debt performs a vital function. It
must grow in order for the economy
to prosper.”
Contending that debt extension is
needed for the health of the economy,
Mr. Peterson went on to examine the

“The second myth,” he noted, “is
that debt has grown much more rap
idly than our ability to pay it off.
When we talk about the ability to pay
off current debt it is implied that the
total debt could suddenly be called,
and that there would be an immediate
shift of real assets from debtors to
creditors. This prospect is exceed
ingly improbable.”
Although total debt today is six
times what it was in 1929, he ex
plained, it was roughly twice as costly
in terms of the paying power of goods
and services to repay a dollar of debt
in that year as it is now. In addition,
increased productivity has meant that
in terms of human effort the cost of

C h i c a g o ’s

new and
convenient

The 14th Resident Session of the
School of Consumer Banking will be
held August 8-20, 1965, at the Univer
sity of Virginia, Charlottesville. This
specialized school of advanced banking
education is sponsored by the Con
sumer Bankers Association, in cooper
ation with the University’s Mclntire
School of Commerce.

M OTOR IN N
Closest To All

Convention Centers 4

O V E R L O O K IN G G R A N T P A R K
Prestige accommodations on Michigan Avenue — facing
Lake Michigan and Grant Park — so close to business,
convention centers, shopping and sightseeing. Ideal for
business men, vacationers or families.
* Heated swimming pool, poolside food
and beverages • Free courtesy car
^

• Free parking on premises i-|
* Free wake up coffee

♦ Free Radio, T V * Free ic e c u b e s ;
Home of famous Cafe French Market and Le Cave
Lounge — entertainment nightly. Sensible rates at all
times. Plan your next trip, or sales meeting now.

PHONE WA 2-2900— TWX: 312-431-1012
: For reservations — write or phone directly,
|f or thru your travel agent.
Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

Consumer Banking School

D O W N TO W N

throughout downtown

repaying the per capita debt is now
lower than in 1929.
“A third myth,” Mr. Peterson stated,
“is that the recent high growth of
federal debt is a major problem. Ac
tually net federal debt outstanding at
the end of 1963 was not much higher
than at the end of 1945—one of the
peak years. Thus from the standpoint
of taxable income, which represents a
rough estimate of the potential for
paying off the federal debt, we are in a
far easier position today than we were
at the end of World War II. More
over,” he added, “the extensive assets
now under federal ownership could
well be considered as partially offset
ting federal debt.”
In discussing the final myth that
federal debt must be reduced or, at
the very least, cannot be allowed to
expand further, Mr. Peterson empha
sized, “ Federal debt viewed in the con
text of the astronomical growth of oth
er aspects of our economy becomes
much less alarming.”
Concluding his remarks Mr. Peter
son said these myths may prevent
wiser and more flexible use of federal
debt as an instrument of economic
policy. The federal government has
the i n e s c a p ab l e responsibility for
maintaining balance in our economy,
and fiscal policy—including debt man
agement—might be used more extentively to enable it to fill this role ef
fectively. “ There is no reason for irra
tional fear of this if we are watchful
of possible abuses in spending.”

Write Dept.
617

Estate Planning Contest
The trust department of The First
National Bank of Chicago announced
recently its sponsorship for the third
consecutive year of a $1,000 estate
planning competition for all Illinois
law students.
In contrast to the drafting and prob
lem solving requirements for the 1963
and 1964 contest, this year’s entrants
will submit a 4,000 to 8,000 word essay
on any one of seven topics chosen by
officers of the trust department.
In addition to the $1,000 first prize,
second and third prizes of $500 and
$250 will be awarded to statewide win
ners. Cash awards will also be given
to the first and second place winners
from each participating law school.
A

m m
THE N E W YORK B ANKER W I T H THE H O M E T O W N TOUCH

.......

—»wT-XW*

■

.....

He wears out 4 pairs of shoes a year solving financial problems on the spot
By not being afraid to get mud on his
feet—he’s helped correspondent banks
and their customers beyond measure.
He surprises some. Apparently they
expect the traveling representative of
a 5-billion-dolIar bank to be less pains
taking. But that wasn’ t how he earned
the title “ the New York banker with the
hometown touch.”

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

With an intimate knowledge of busi
ness and industry, and with the aid o f
correspondent banks everywhere, your
man at Chemical New York can often
supplement your own staff in accom
modating customers.
He offers you the services o f a large
corps o f specialists, with headquarters
in the financial capital. That’s a lot of

service. A lot o f shoe leather. It saves
steps for you. Chemical Bank New York
Trust Company, New York 10015.

C h e m ic a l
JVew ifrrk
Northwestern Banker, December, Ï9$4

ABA President Comments . . .

E ffe c t o f G en era l E lection
On N a tion 's F isca l P olieii
NORTHWESTERN BANKER asked Reno Odlin, new president of the
American Bankers Association and chairman of the Puget Sound National
Bank in Tacoma, Washington, for his views on the implications of the
recent national elections for the banking industry. His comments follow:

Reserve Board in raising the discount
rate and modifying Regulation Q was
made necessary by the creation of a
differential resulting from Great Brit
ain’s bank rate increase from 5 to 7
per cent. This move undoubtedly
would have been made, in just the
same way, regardless of the outcome
of the recent election and regardless
of which party was in the majority.

Dollar Strength

HERE IS little or no reason to
believe that the outcome of the
recent elections will result in drastic
changes in fiscal
Policy. The United
States is now in
a position where
changes in nation
al administration
do not result in
drastic changes in
monetary or debt
management poli
cies. We h a v e
been fortunate in
R ENO O D L IN
A B A President
more or less iso
lating these areas from fluctuations
occasioned by political changes.

Stabilizing Force

This broad principle, which

has

developed over the years, provides a
stabilizing force for gradual changes
in monetary and debt management
policies as circumstances require from
time to time. The non-partisan ap
proach to monetary matters also tends
to reassure other nations of the Free
World that we stand ready to defend
the dollar—the major reserve cur
rency in the world today. The gen
eral acceptance of the principle of
non-partisan monetary and debt man
agement has been amply demonstrated
in recent years. We have had Dem
ocrats serving as Secretary of the
Treasury in Republican administra
tions, and Republicans serving as Sec
retary of the Treasury in a Demo
cratic administration.
G e n e r al l y
speaking, politics has had no place in
these functions.
The recent action by the Federal

When ivas the last time you said . . .

“There must be
an easier way
to write bonds!“
There is . . . with

Hawkey e*Security
HAWKEYE-SECURITY INSURANCE COMPANY • DES MOINES
MEMBER OF FINANCIAL GENERAL INSURANCE GROUP

The late President Kennedy was
faced with a serious balance of pay
ments problem when he entered the
White House. In spite of his desire
and his efforts to keep the economy
expanding and to reduce the unem
ployment rate, he was realistic enough
to see the danger if foreigners lost
confidence in the strength of the dol
lar. By special gold telephone in the
White House he kept track of the
gold flow and the day-to-day events
that affected the balance of payments.
When President Johnson addressed a
joint session of the Congress shortly
after he assumed the presidency, he
repeated President Kennedy’s pledge
to protect the value of the dollar.
Monetary policy has been “inde
pendent within government” since the
organization of the Federal Reserve
System 50 years ago. This arrange
ment was not perfect when it was
established in 1913, nor is it perfect
today. It has made tremendous im
provements over the years and will
undoubtedly make many additional
improvements in the years ahead.
But, in spite of any shortcomings the
system might have had or may still
have, I would hate to think of the
nation’s monetary policy without an
independent Federal Reserve System
to run the day-to-day business of man
aging the country’s money supply.

Fiscal Policy

Fiscal policy is a quite different
matter. Here the administration has
great and direct influence, although
the final results are subject to the
approval of Congress. Unless we
should have a serious national em
ergency or unless business slumps un
expectedly and drastically, I would
hope that President Johnson would
follow through with his policy of
frugality in government spending so
we can realize the benefits of the tax
cut and still speed the day when a
balanced budget is a reality.
“ Balanced budget” is not just an oldfashioned phrase: it is a definition of
a principle—that over a period of
years we should take in as much as we
pay out and “live within our means.”

■*r

— End.
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

’Tis the season to be jolly.

Once again, this year Continental Bank will display
its enchanting annual exhibit, "T ra d itio n s o f Christ
m a s ". . . a pageant o f magnificent figurines and back
grounds in scenes w hich d e p ict th e c u sto m s o f
Christm as in m any lands.
T his charming display is located on our main
banking floor. It enables us to say "M e r r y C h ristm a s"
to our friends and customers in a warm, yet unique
manner.
M a y we take this opportunity to wish the same
to you . . . wherever you are, and to ask you to
stop in and see us, when y o u ’re in Chicago.

CO N TIN EN TAL BA N K
CONTINENTAL ILLINOIS

NATI ONAL B A N K A N D T R U S T C O M P A N Y OF CHI CAGO

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1964

S a lu m a i f 'harter F a r M er c a n tile
SPECIAL meeting of the stock
A holders
of the Mercantile Trust
Company, St. Louis, will be held De
cember 21 to authorize the conversion
of the state chartered trust company
into a national banking association un
der the supervision of the Comptroller
of the Currency.
It is contemplated that the conver
sion will become effective at the close
of business Christmas Eve, December
24, after approval by a majority of
Mercantile stockholders at the Decem
ber 21 meeting.
Kenton R. Cravens, chairman of the
board of Mercantile Trust Company,
said that because of recently enacted
federal laws and regulations, plans for
the conversion had been in process for
sometime.
He stated that the directors and
management of Mercantile had con
cluded that conversion to a national
bank charter was to the best interest
of both the community of St. Louis,
and the bank’s depositors, stockhold
ers and customers throughout the
nation.
Mr. Cravens stated that it was ex
pected that operation under a national
charter would provide greater flexibil
ity in many phases of Mercantile’s
banking and fiduciary functions while

St. Paul
BANKERS

requiring no significant sacrifice in
any important area. The converted
bank will continue to be a member of
the Federal Reserve System and its
deposits will continue to be insured
by the Federal Deposit Insurance Cor
poration.

To Chemical Board
J. Wilson Newman, chairman of the
board and chief executive officer of
Dun & Bradstreet, Inc., has been elect
ed a director of Chemical Bank New
York Trust Com
pany, it was an
nounced recently
b y H a r o l d H.
H e l m , chairman
of the bank.
An alumnus of
Clemson Univer
si ty and New
Y o r k University
Law School, Mr.
N ew m a n began
J. w. NEWMAN
his career with R.
G. Dunn & Company in 1931, short
ly before its merger with The Bradstreet Company. After several years
of credit reporting, he was given
a wide range of assignments which
led to his election as vice president in

BLANKET BOND
is always

"O W E S T E P "
ahead
St. Paul Bankers Blanket Bond Form 24 with
Extended Coverages always covers everything in the
standard form. Then it goes one step further—and
beyond—to give you coverages not provided in the
standard form.

T H E ST. PAUL
I N S U R A N C E

C O M P A N I E S

H O M E OFFIC E

385 Washington
St. Paul, Minn.

S e rvin g you around the w o r ld . . . aro un d the d o c k

St. Paul Fire & Marine Insurance Company
St. Paul Mercury Insurance Company
Western Life Insurance Company

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

For more information
call your
St. Paul Agent today!

1946. He became president in 1952
and chairman in 1960, continuing as
chief executive.

Elect Denver Banker
Roger D. Knight, Jr., chairman of
the board of the Denver U. S. National
Bank, has been elected to the board of
t ru st e e s of the
F o u n d a t i o n for
Commercial
Banks.
Mr. Knight was
elected director of
the United States
N at i ona l Bank,
Denver, in 1949;
he became presid e n t i n 1 95 4.
When U n i t e d
States National
consolidated with Denver National
Bank on January 1, 1959, Mr. Knight
became president of the new institu
tion—Denver U. S. National Bank. On
January 16, 1962, he was elected chair
man of the board and chief executive
officer. He is also chairman of the
board of Broomfield Bank, Broomfield,
Colo.

New Foreign Exchange List
Manufacturers Hanover Trust Com
pany, New York, is distributing a new
edition of its “Foreign Exchange Quo
tations” folder. The folder lists 179
foreign exchange rates and contains
two tables showing the decimal equiv
alents of (a) shillings and pence and
(b) common fractions.
Copies are available at the bank’s
international division, 44 Wall Street,
New York 15, N. Y.

Bankers Trust Promotions
William C. Bullock and Thomas A.
Herbert have been elected vice presi
dents of Bankers Trust Company, New
York, according to William H. Moore,
chairman of the board.
Mr. Bullock is in the municipal bond
division where he was previously sales
manager.
Mr. Herbert, who is in the invest
ment research division, joined Bank
ers Trust in 1954. He became assist
ant treasurer in 1956 and assistant vice
president in 1958.

2 ,0 0 0 ,0 0 0 th Loan
The Valley National Bank, Phoenix,
made its 2,000,000th installment loan
last month, according to Jo Abbott,
senior vice president in charge of the
department.
The bank makes 10,000 loans each
month through its statewide install
ment lending operations. During the
past 29 years, the bank has loaned
over $1.75 billion in installment funds.

How to put two extra people to
work on your bank advertising
J o in the F o u n d a tio n fo r C o m m e rc ia l Banks —C all on
F irs t N a tio n a l fo r S p e cia l A d v e rtis in g A ssista n ce
T hrow the weight of a national advertising program
behind your local advertising. Join and tie-in with
the Full Bank Service cam paign sponsored by the
voluntary, nonprofit Foundation for Com m ercial
Banks. For m em bership inform ation write E x ecu
tive Director, F oundation for Com m ercial Banks,
Philadelphia N ation al Bank Building, Philadelphia
1, Pennsylvania.
W h enever you have a special problem in any aspect

o f your ban k’ s advertising or public relations, call
on First N ation al to help you. Advertising assist
ance is only one of our wide range of correspondent
services . . . all geared to m eet the highly com peti
tive pace of to d a y ’s banking.

Write for advertising k it . . . a complete and con
cise guide to help your bank plan and produce effec
tive advertising. Send requests to “ Advertising K i t ,”
First N ation al Bank in St. Louis, St. Louis 1, M o .

K11""' 1" ........
FIRST
NATIONAL
BANK

FIRST N A T IO N A L BANK IN ST. LOUIS
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION V
D e n t a r

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A a / 'â m fio r

ï Q A d

joyous noe/ FR0«
EACH OF US AT THE CENTRAL. MAY THE C O M IN S
YEAR BRING YOUR F A M I L Y ’S EVERY W IS H INTO
CLEAR REALITY.

O N A L B A N K A N D TRUST C O M P A N Y
Fifth and Locust Street . . Des Moines

Member Federal Deposit Insurance Corporation

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1964

l l 'i r 1 H e tjio n n l T o .ìlin n e o /u tlis
NE of a series of three Financial
Public Relations Association re
gional meetings will be held in Min
neapolis April 5 at the Sheraton Ritz
Hotel, it was announced by FPRA na
tional headquarters in Chicago.
Chairman for the meeting is Albert
H. Heimbach, vice president, Farmers
& Mechanics Savings Bank. Vice
chairmen are Monroe Stenerson, vice
president, Richfield Bank & Trust
Company, who is also a member of
the board of directors of FPRA, and
Gordon Malen, assistant vice presi
dent, First National Bank.

Committee program heads are C.
Stanley Rude, public relations direc
tor, Northwestern National Bank; reg
istration, Truman Jeffers, Minnesota
Bankers Association; finance, Harry
Benson, vice president, Midland Na
tional Bank; publicity and promotion,
Robert E. Harris, public relations di
rector, Farmers & Mechanics Savings
Bank; hotel arrangements, King Bennethum, assistant vice president, First
National Bank.
Other regionals are scheduled for
Pittsburgh April 2 and New Orleans
April 26. Minneapolis was last host
to an FPRA regional in 1960.

Roosa Resigns from Treasury

Mr. Roosa was appointed Under
secretary of the Treasury for Mone
tary Affairs by the late President
Kennedy in 1961. While at the treas
ury he had served as head of the U. S.
delegation to the work party on bal
ance of payment problems of the
O.E.C.D. and as chairman of the group
of deputies of the ministers of the
group of ten, appointed to examine the
international monetary system.
From 1946 to 1961, Mr. Roosa was
connected with the Federal Reserve
Bank of New York as economist and
as vice president and head of research.

Robert V. Roosa, Undersecretary of
the Treasury for Monetary Affairs,
will join the banking firm of Brown
Brothers Harriman & Company, as a
general partner, it was announced in
New York. Mr. Roosa’s resignation
from his treasury post is effective De
cember 31. He will be admitted to
the ba n k i ng firm, subject to the
approval of the New York State
Banking Department and the New
York and American Stock Exchanges,
on January 1, 1965.

A GOOD BALL CARRLER
like The Farm Picture helps you put full service hanking
across to farmers, ranchers, dairymen and planters.
A banker writes:

“ A recent article on ‘split
credit’ prompted two of
our farm customers
to consolidate their
operating
chinery

and

loans

into

one credit line with us.”
Ralph N. Taake, Jr., Cashier
First Bank & Trust Company
Cairo, Illinois
Now in 4 Editions—
Feedbelt, Ranch, Dairy, South.

Samples and price lists on request.

THE

FARM

PICTURE®

RANCH-FARM • DAIRY-FARM • SOUTH-FARM
P. O. BOX F

URBAN A, ILL IN O IS

61802

OUTSTANDING CHOICE OF OUTSTANDING BANKERS
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

JNew York Promotions
Five new vice presidents have been
named by the First National City
Bank, New York. They are: Robert
L. Huston, William M. R. Mapel, Alan
W. Peters, William M. Crane and
Parker E. Nielsen.
M r. H u s t o n
joined the bank’s
petroleum depart
ment as a trainee
in 1956, was ap
pointed an assist
ant c a s h i e r in
1958 and was laternamed assistant
vice president.
M r. M a p e l
r. l. h u sto n
joined First Na-

W . M . R. M A P E L

A. W . PETERS

tional City as a trainee in 1957. He
was assigned to the Illinois-Wisconsin
district in 1958, became an assistant
cashier in 1959 and an assistant vice
president in 1962.
Mr. Peters joined the bank as an
assistant cashier in 1959 following
service with New York Trust Company. He served in the southwestern
district, was named an assistant vice
president in 1960 and was transferred
to the western district in 1962. In his
new assignment, he will be in charge
of the southwestern district.
Mr. Crane and Mr. Nielsen are in the
bank’s investment division.

Name Executive Committee
Charles R. Howell, newly elected
president of the National Association
of Supervisors of State Banks, and
commissioner of banking and insur
ance in New Jersey, has appointed 12
state bank supervisors to the Associa
tion’s executive committee.
Included among the new appointees
are John Chrystal, Iowa superintend
ent of banking, representing the eighth
FDIC district, and John D. Chisholm,
commissioner of banks in Minnesota,
representing the Ninth FDIC district.

Elected to Detroit Board
John F. Gordon, president and chief
operating officer of General Motors
Corporation, was elected to member
ship on the board of directors of the
National Bank of Detroit last month.

Huge blackboards above the trading floor of the Chicago Board of Trade.

America’s futures trading center is just
around the corner from the Harris
—another good reason for doing your banking here
If you or your customers are interested
in commodities, over 90% of the grain
futures in the U.S. are traded at the
Chicago Board of Trade, just around
the corner from the Harris Bank.
Chicago beckons for many reasons:
an international port, heart of U. S.
railroads, export center of the nation,
world’s busiest airport, to name a few.
Good place for a banking connection,
but why should it be the Harris?
The fact is, correspondent banking

is a major part of our business. The
Harris has a corps of experienced
men who will make the bank available
to you—overloans, international bank
ing, public relations, personnel train
i n g — and the many other services
you’d expect of a principal bank in the
business center of America.
Stop in the next time you’re in
Chicago, and let us show you some of
the ways we help correspondent banks
build their businesses.

HARRIS
Trust and Savings

BANK
Organized as N. W. Harris 8 Co. 1882— Imcorpnrated 1907
Member Federal Reserve System . . . Federal Deposit Insurance Corporation

H I WEST MONROE STREET— CHICAGO, ILL. 60690

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

V-

CONFERENCE SPEAKERS (from le ft): Charles H. Whitmore, George H. Swift, Jr., Sidney A McKnight, Carter L. Burgess, Peter
Kiewit, Dr. Paul S. Nadler and Calvin W. Aurand.

Ittisin ess I.en tiers S ee i'o n lin n e tl
fìttoti
OOD business for the first half
of 1965 and very probably for
the entire year was forecast by
six prominent business leaders early
this month at the Iowa-Des Moines
National Bank’s sixth annual confer
ence on “ Iowa Business Trends for
1965.” More than 560 business leaders
from Des Moines and central Iowa
attended the one-day session at Hotel
Fort Des Moines.
Calvin W. Aurand, president of the
bank, presided at the meeting. The
noon luncheon speaker was popular
Dr. Paul S. Nadler, associate professor
of finance at New York University.
The other five speakers were corpo
rate executives whose firms have
strong relationships in Iowa.
Dr. Nadler: Continued good business
at least until mid-year, and beyond
this if a new stimulus, such as another
tax cut, is injected. No appreciable
drop is expected under any circum
stances, because of strong basic forces,
although housing is the weakest point
and will remain so until the “war
babies” generation gets married and
finds the jobs that these millions will
need to pay for new home formations.
The biggest “if” at this point is the
likelihood of a steel strike in May.
We will probably see a tightening
by the Fed of money policies in the
months ahead because it can’t main
tain an “easy money” policy in the
face of its recent rate changes.
There is so much money available
from various sources that the squeeze
is on banks to deter loan rate in
creases, despite necessary increases in
savings rate to be competitive inter
nationally. We will see an increased
use of fees for services performed by
banks, as opposed to income based
mainly on prime loan rates.
If inflation hits in 1965, all bets are
off, but we don’t really anticipate in
flation at this time.
Sidney McKnight, regional vice pres
ident, Montgomery Ward & Company,

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

itosifo r

on “ Retailing” : Retailing’s success de
pends on income levels, population
growth and consumer’s desire to
spend. The outlook for all three in
1965 is optimistic. Nationally, retail
sales should total $261 billion in 1964,
up six per cent from 1963. In 1965,
retail sales will be about 275 billion,
up another 5 per cent over this year.
For both Iowa and Des Moines, 1964
shapes up as a banner year for these
reasons—non-agricultural employment
is 713,000, up 10,000 over 1963; weekly
earnings for Iowa production workers
in August was $108.50, up $5 over a
year ago, and in Des Moines it was
$127, almost $16 increase; construction
in the state is at a high level for new
plants and facilities; residential con
struction permits in Iowa were nearly
6,500, a shade below 1963’s record 14
per cent gain over 1962.
Retail sales in Iowa for 1964 are at
$4.2 billion, up 5.5 per cent. In Des
Moines they are 9 per cent ahead.
George H. Swift, Jr., vice president,
Swift & Company, on “Agriculture and
Livestock” : Activities of packers, store
managers and hog raisers are at work
to build and improve the image of
pork for the future of Iowa’s livestock
economy. Development of meatier-type
hogs has been a constructive factor.
Towa’s cattle on feed in the past 14
years have gone from 1,000,000 head to
1,750,000 head. Increased competition
comes from the growth of feedlot op
erations on large scale in such states
as Nebraska, California, Texas, Colo
rado and southeastern states to some
extent. However, Iowa has such plus
factors as lower cost feeds that are
locally produced and fed on diversified
farming operations.
Packers have made good gains in ex
porting meats to Japan and Europe,
going from $87 million in 1962-63 to
$118 million for 1964.
Charles H. Whitmore, chairman and
president, Iowa-Illinois Gas & Electric
Company, Davenport, on “Utilities” :

We anticipate a continuation of good
business in 1965. The six principal in
vestor-owned companies in Iowa have
budgeted construction expenditures in
Iowa of more than $55 million, some 25
Y
per cent over the $44 million for 1964.
Nationwide increases are about 2 per
cent. Northwestern Bell will spend
some $39 million for new facilities in -\
Iowa in 1965, about the same as 1964,
which was about 20 per cent higher
than the record year of 1963. We don’t
expect business in Iowa to jump up 25
per cent, but this kind of investment A
must be made now to stay ahead of
service demands so we can be ready
for anticipated requirements.
Peter Kiewit, president, Peter Kie 1
wit Sons’, Inc., on “Construction”: Our
firm has $550 million in contracts all
over the U.S., Canada and three for
eign countries and we normally do up
wards of $300 million of work per 4
year.
In your state, agricultural output
has increased by 26 per cent to $21/2
billion in the past 14 years, while the i
industrial output has gone up 250 per
cent and is now over $7 billion. One
hundred of the top 500 corporations in
the U. S. now operate one or more
Y
plants in Iowa. Construction resulting
from Iowa growth is important to
your economy, with 34,000 construc
tion people earning just under $200
million annually. I expect an increase Í
in construction dollar volume in Iowa
of 6 per cent for 1965, compared to a
national average of 4 per cent.
Carter L. Burgess, chairman, Amer <
ican Machine & Foundry Company, on
“ Manufacturing” : 1964 has been a
“brilliant” year for Iowa manufactur
ing and there are good reasons for
expecting the same in 1965. Produc
tion at Western Tool & Stamping Co.,
Des Moines (an AMF subsidiary), is
up 20 per cent for 1964 and this in
crease will probably continue for 1965, 4
although possibly at a lower rate.
Problems we can face in 1965 are
possible price increases in some areas,
unemployment among younger per
sons, displacement caused by auto Y
mation, although automation now is
at a point where it is creating jobs.
>

ANYWHERE...
BANKING HAS A FRIEND AT CHASE MANHATTAN
But it’ s a g ood deal more than just friendship. Day in, day out, we’ re working with and
for our banking friends . . . bringing new ideas and providing services for better banking.
For instance, we make available the financial counsel o f our industry specialists, to help
you with your customers in technical fields. When y o u ’ re confronted with a request for a
loan o f unusual size or nature, call on our loan specialists. And the assistance o f our port
folio advisors often enables you to make the most o f your bank’ s investments. With this
sort o f practical friendship, it’ s understandable why more than 1200 o f our correspond
ents have done business with Chase Manhattan steadily for fifty years or more!
R e m e m b e r . . . anytime, anywhere, you can count on and use your working friends at
Chase Manhattan.

THE CHASE MANHATTAN BANK
H e a d O ffic e : 1 C h ase M an h a tta n P laza, N e w Y o rk, N. Y. 10015

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1964

New Associate Editor for
Northwestern Banker
David L. Lendt has been appointed
4
associate editor of the N o r t h w e st e r n
B a n k e r and its companion publica
tions, the Underwriters Review and
Iowa-Nebraska Bank Directory. Mr.
Lendt has moved
to Des Moi nes ¿V
from West Un
ion, where he has
been news editor
the past two years A
for the Fayette
C o u n t y Union
w e e k l y newspapaper.
A n a t i v e of
Grand
Isl and,
D. L. L E N D T
Neb., where he
attended elementary and high schools,
Mr. Lendt was graduated in 1960 from A
Iowa State University at Ames with
a Bachelor of Science degree in Tech
nical Journalism. After graduation he
was news editor for the Anamosa Jour
á
nal and Eureka at Anamosa, Iowa,
until he was called into the United
States Army for one and one-half years
of service. After completing his mili
\
tary duty, Mr. Lendt joined the West
Union newspaper.
At West Union he was a member of
the Lions Club, vice president of the
Junior Chamber of Commerce and 4
served on the City Plan and Zoning
Commission. He is a member of Sigma
Delta Chi professional journalism so
ciety, and the Iowa Press Photog 1
raphers Association.
Other members of N o r t h w e st e r n
B a n k e r staff are Malcolm K. Freeland,
publisher; Ben Haller, Jr., editor, and
Y
Larry Nothwehr, associate editor.

M ichigan N ational Bank, Grand Rapids, M ich.

There's really safety
in our numbers

Rogers H. Woods, Jr.

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N am e of Bank

Western Banco Director

Address

Stanton G. Hale, president of Pacific
Mutual Life Insurance Company, was
elected a director of Western Bancorporation last month.

City

State

My N am e and Title

FULL SERVICE TO THE FINANCIAL FIELD
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Rogers H. Woods, Jr., executive di
rector of the Foundation for Commer
cial Banks, died November 28, of a
heart ailment in University Hospital
in Philadelphia, Pa.
Mr. Woods joined the Foundation
in 1959 as executive secretary, was
elected secretary-treasurer in 1960,
and executive director in 1962.
He was previously a partner in
Woods, Donegan & Company, Inc.,
New York financial public relations
firm.

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very
personal
SEASON’S
GREETING
from your

S A IN T

L O T J IH , M O .

TRUST

C O M P A N Y
LARGEST

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

—

H A X Iv I XT M I S S O U R I

Northwestern Banker, December, 1964

26
>

Remove Loan Ceiling
The T r e a s u r y D e p ar t me n t last
month removed the ceiling on the
amount of loans a national bank can
make when the loans are secured by
direct obligation of the United States.
The ceiling had been 25 per cent of
a bank’s capital and surplus if the gov
ernment obligation matured more than
18 months from the date of the loan.
There was no ceiling at all on shorter
maturities of such obligations.
The removal of the ceiling, it is said,
is applicable to state member banks
through Section 11 of the Federal Re
serve Act, which says these institu
tions shall operate under the same
limitations in this area as national
banks.

Miss Drive-In Teller

We know all the presidents
of our correspondent banks
by their first names.

Sandra Haber, drive-in teller at the
Bettendorf Bank and Trust Company,
Bettendorf, Iowa, has been selected
Miss Drive-In Teller—1965 in a na
tional vote of bankers.
The Miss Drive-In Teller contest is
sponsored annually by The Mosler
Safe Company to give recognition to
outstanding drive-in tellers who have
a major responsibility for building cus
tomer goodwill.

So?
Is this a reason to give your correspondent business to
the National Boulevard Bank of Chicago?
In itself, no. But what it suggests may give you reason
to switch to us. It suggests that you’re more than a num
ber at National Boulevard-that you’re a person, an en
tity, and that your problems are as real as you are. It
suggests the personal approach we take toward corres
pondents. It suggests individual attention, tailor-made
advice, an uncommon interest in seeing you make good.
Example: W e’ll be happy to analyze your portfolio,
evaluate the earning distribution of your assets, and rec
om m end adjustm ents for proper balance and sound
financial health — recommendations that will help you
keep the profit you make on loans. These will be specific
recommendations, tailored to your specific situation. No
vague formulas, no generalities. Can you imagine a bank
with several hundred correspondents having the time or
inclination to do this for each one?
Our purpose is not to run your business. It is simply
to provide you with information that will help you man
age your own operation more profitably. W e know that
as you prosper, we stand to prosper. So we’re not only
willing, we’re eager to provide expert counsel.
Doesn’t that make sense, Harry?
I f it makes sense to you and you want more information call Fritz Wagner a t...

N A T IO N A L B O U L E V A R D B A N K

Ch ic a g o

400-410 N. Michigan Avenue • Phone 467-4100

WINNER of Miss Drive-In Teller Contest,
Sandra Sue Haber, is shown with Charles
Singer, Iowa Mosler repr, left, and Robert
Knapp, exec, v.p., Bettendorf Bk. & Tr. Co.

Miss Haber and two other finalists,
Susan Kinsey of the Nassau Trust
Company, Glen Cove, N. Y., and Margarent Turner of the Alva State Bank,
Alva, Okla., were presented to bank
ers at the American Bankers Associa
tion Convention in Miami Beach in
October. The winner was selected by
ballot from thousands of bankers fol
lowing the convention.
Mosler provided complete wardrobes
for each of the finalists at the ABA
Convention. Miss Haber’s grand prize
is an all-expense vacation for two at
the Jamaica Inn in Jamaica, British
West Indies, with transportation by
British Overseas Airways Corporation
707 jet.

-V

M E M B E R F .D .I.C .

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

MSBHBMBI

A U T O M A T I C COIN W R A P P E R
A m o unts and d e n o m in a tio n s a u to m a tic a lly in d ic a t e d by
pate n te d " r e d bordered w in d o w s ” . A m o u n ts in window s
alw ays in reg ister . . . e lim in a te s m istakes. A ccom m odates
all coins fro m 1c to $1.00.
T U B U L A R COIN W R A P P E R
Especially designed for m a c h in e fillin g . . . a real tim e-saver.
Packed fla t. In s ta n t patented " P o p O p e n ” action with fin ger
tip pressure. D en o m in a tio n s id en tified by color coding . . . 6
d iffe re n t stan d a rd colors.
R A I N B O W COIN W R A P P E R
C olor coded for quick, easy id e n tific a tio n . Red fo r pennies . . .
blue fo r nickels . . . green for dim e s . . . to in dicate q u a n tity
and d e n o m in a tio n s . . . e lim in a te s m istakes. T ap ered edges.
D U Z IT A L L COIN W R A P P E R
Extra w ide . . . extra strong. Designed for areas w h ere halves
are w rapped in $20 .00 packs . . . “ red bordered w in d o w ” fo r
ease of id e n tific a tio n . A ccom m odates $20.00 in dollars, $20.00
in halves. T a p e re d edges.
9

DOWNEY

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

OLD S T Y L E COIN W R A P P E R
Basic coin w ra p p e r in extra strong k ra ft stock. Printed in 6
d iffe re n t s tan d a rd colors to d i f f e r e n t i a t e d e n o m in a tio n s.
T r ip le d e s ig n a t io n t h r o u g h colors, p r in t in g and letters.
Tapered edges.
K W A R T E T COIN W R A P P E R
W raps 4 d e n o m in a tio n s in h a lf size packages. A m in ia tu re of
th e p o pular " A u to m a tic W ra p p e r” . . . 25c in pennies, $1.00 in
nickels, $2.50 in dim es, $5.00 in q u arte rs .
F E D E R A L BILL S T R A P
P ackage c ontents c learly id en tifie d on faces and edges by
color coded panels w ith in verted and reverse figures. M ade
o f extra stro ng stock to assure un broken deliveries. Only pure
d e x trin e g u m m in g used.
C O L O R E D BILL S T R A P
E ntire strap is color coded to id en tify d e n o m in a tio n . Printed
a m o u n t a p p ears on top and bottom of package. Extra wide
for m arkin g and s tam p in g . Extra strong stock fo r safe delivery
and storage. Pure dextrine g u m m in g .

BANDING S T R A P S
Ideal for packing currency, depo sit tic k e ts , checks, etc. . . . do not break
or d e te rio ra te with age. Size 10x1% inches and m ad e of strong brown
K raft stock w ith gu m m e d end for ease of sealing. Packed 1000 to a carton.

SEE

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HANNI BAL,

S A M P L E S

MI SSOURI

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Northwestern Banker, December, 1964

The franc is local currency in France.

So is this.
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Bankers in 124 countries sell Bank o f A m erica
Travelers Cheques w ith confidence, know ing
th ey ’re local currency anywhere in the world.
For you as a seller, they have special ad
v a n ta g e s : th e y ’re p re-p a ck a g ed and M IC R
coded for electronic handling (you minimize
overhead, receive even fa ster claims service).

4
MMÜ
T h ey’re insured by the Federal Deposit In
surance Corporation as a deposit. A nd your
supply is electron ically rep len ish ed — B ank
o f A m e r ic a ’ s co m p u te rs a n tic ip a te y o u r
needs, keep you supplied automatically.
Find out m ore about the profits you can
m ake handling this w orldwide currency.

BANK OF AMERICA TRAVELERS CHEQUES
One South Van Ness, San Francisco 20, California
BANK OF AME RI CA N A TI O N A L T R U S T AN D SAVI NGS A S SOC IAT I ON * ME MBER F ED E RA L DE POSI T I N S U R A N C E C O RP OR AT ION

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Here's How a Hagerstown, Maryland

B an k Sells M o n e y fo r G ifts

Money by the inch—
Money by the yard—
Money by the pound—
Chests of money—
Buckets of money—
Money trees—
Birds of money sitting on branches of money trees.

OUNDS like paradise? Actually these are ingredients
in a highly successful promotional campaign devel
oped by the Hagerstown Trust Company, Hagers
town, Md., which uses each of the above as a “for sale”
gift item in order to draw customers to its savings, loan,
checking and many other banking services.
William E. King, Jr., Hagerstown Trust vice president
and treasurer, developed and now supervises the promo
tional money campaign. In his words, “Hagerstown Trust
sells money to promote banking services.”
Some of the items the bank sells are:
Corsages, with bills of any desired denomination for
“green leaves.”
Instant Money, packaged in a cannister and “guaran
teed non-caloric.” The label warns, however, that con
tinued use of contents may be habit-forming.
Cold Cash, inserted in a simulated ice cube and pack
aged in a transparent plastic box.
Bit-O-Money, cash packaged as a candy bar (with per
mission of the candy company).

Money Magic Magician’s Kit, complete with directions
and all items necessary for performing six magic tricks
with money.
Natural Development

The Magician’s Kit was a natural development for Mr.
King, who is himself an amateur magician. (He and a
fellow magician, Adolfo Cerceda, have collaborated on a
book titled, “The Folding Money Book.” A new book on
the merchandising of money will be published this year.)
Before starting on the present program of “marketing
money,” Mr. King used magician’s novelties and tricks
in bank displays he created for Hagerstown Trust. One
of his more popular displays was an illusion in which a
pile of pennies appeared to turn into dollars as onlookers
approached.
Mr. King’s program has not been quite that profitable,
although it was instantly successful and its popularity is
growing.
He borrowed the original money-selling idea from a
bank in California that had sold five-pound boxes of
money. With the California bank’s permission he used
this novel way of packaging cash for a Christmas gift sea
son. It was highly successful, so Mr. King tried “rings
of money,” and so the program has grown.
Reputation Growing

As the word has spread on the program, hundreds of
requests have come in for information and literature from
Hagerstown area residents and organizations, and from
other banks—one as far away as Melbourne, Australia.
Although the program has grown tremendously, Mr.
King has still managed to keep its operation simple.
Requests for information or samples of promotional
BANK SELLS MONEY . . .

(Turn to page 72, please)

THREE PANEL DISPLAY was used by Hagerstown Trust
to show the various types of gifts offered in the firm’s “ money
selling” promotion. Included are a kiddies’ money belt, coins
in a money tree, a bucket of money and money corsages in
addition to other monetary gifts.

REAL “FOLDING” MONEY is shown being shaped into an
other petal for a money corsage— one of several items in Hagers
town Trust Company’s special money promotion devised and
managed for the firm by William E. King, Jr., v.p.
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HAT do businessmen think of
their banks? By and large,
according to a recent exclusive
N o r t h w e st e r n B a n k e r survey of near
ly 100 midwest retailers, wholesalers
and manufacturers, businessmen think
highly of their banks and the services
they offer.
Among the roses, however, are sev
eral thorns.
A few businessmen, as might be ex
pected, are not at all satisfied with
their banking institutions for various
reasons.
One retailer, for example, criticized
his bank for its attitude toward bor
rowers. “They are doing us no favor
when they loan us money and we
make our interest payments on time,”
he remarked. “We have never bor
rowed over 25 per cent of our quick
assets and now borrow 10 per cent.
In other words, we feel that we are
doing them the favor.”
Personalities, according to the sur
vey, are extremely important to the
businessman and are reflected in his
criticisms.
Even in complimenting his bank,
one businessman placed emphasis on
personalities when he remarked that
“there is nothing I dislike about my
bank. My only comment would be
that some of its staff members are
friendlier than others. Purely per
sonal.”
To further cite the importance of
people-to-people relationships between
banks and their businessmen custom
ers, nearly every comment made in
favor of a particular institution listed
“ friendly” among its descriptive adjec
tives.
More evidence of the personality
factor was apparent, if tongue-incheek, when a businessman, asked
what he liked least about his bank,
replied, “The president.”

Other Criticisms

Other dissatisfactions arose from
what respondents termed “excessive
charges” for services, inadequate park
ing facilities, poor public relations,
lack of an active small loan depart
ment, inability to handle peak hour
business, failure to provide “business
trend” information, lack of commu
nity interest, ultra-conservatism and
the bank’s “ability to make a cus
tomer feel he is interrupting the
bank’s day.”
Another businessman claimed that
his bank lacked competitive spirit and
noted that “the building and loan as
sociations and auto lending agencies
get my business by default.”
It should be pointed out, however,
that all the complaints listed came
from a very small percentage of the
businessmen polled.
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

W hat Businessmen
M

On the other hand, responses indi
cated that all but four of the business
men questioned w o u l d recommend
their bank to another business firm
and several noted that, in fact, they
had done so.
All but two replied that their banks
have a large enough capacity to han
dle their borrowing needs.
Asked if any officer of their bank
called on them in their places of busi
ness, 25 responded in the affirmative
while 53—more than double the affirm
ative responses — reported that no
bank officer ever calls on them. Some
of those stated, though, that the offi
cers would call if requested to do so.
Others offered the opinion that the
local bank would do itself a favor by
making periodic visits to business cus
tomers as a means of enhancing the
bank’s public relations.
Just s ev en respondents reported
that their banks offer any type of
business forum, conference or meeting
for local businessmen. Without ex
ception, the seven described the for
ums as constructive.
Drive-In Boon

Drive-in banking, according to the
survey, is a boon to the businessman.
Asked “What is the best new service
your bank has started in recent
years?” the businessmen gave a re-

sounding vote of confidence to drivein banking facilities.
A total of 39 named drive-in banking
the best new service and 13 named
drive-in facilities as one of the two
most important services offered by
their banks.
In spite of the fact that most dis
satisfactions voiced by businessmen
could be traced to personality differ
ences, the respondents apparently
choose their banking centers with less
regard for personalities than for other
factors.
The primary reason they gave for
choosing their present bank was the
fact that the business account had
“always been there” or that the account was there when the respondent
assumed management of the business.
The con ven ien ce o f the bank’s loca
tion was second in freq u en cy in ch oos
ing the bank fo r the respon dents’ business accounts.

It should be noted, however, that
personality-related factors were close
behind. “Previous favorable personal
experience” with the bank accounted
for numerous decisions in favor of a
particular bank as did the bank’s “fa
vorable lending policy” toward the
business in question. (See Graph I.)
The one most important service of
fered by his bank the businessman
felt was that of providing business

Think o f Hanks
Another Exclusive
NO RTHW ESTERN BANKER
SURVEY
>-

loans. Accurate handling of the busi
ness account also accounted for sev
eral votes.
Interestingly, courteous tellers were
named as the “most important serv
ice” ahead of after-hours depository
service, investment advice, trust serv
ices, quick service for business accounts, safe-keeping service, drive-in
banking and good business advice!
(See Graph II.)
3.

The Breakdown

Following is a complete breakdown
of responses to each of the questions
put to the businessmen:
1. For what reason did you choose
your present bank for your busi
ness account? (First figure, first
c hoi ce; s e c o n d figure, second
choice.) Convenient location, 177; solicited by bank, 3-0; friendship with someone in bank, 4-11;
firm member on bank board, 1-0;
size of bank, 0-1; recommended by
friend, 3-2; favorable lending policy toward business, 13-10; bank
financially sound, 4-3; bank’s ad
vertising, 0-0; previous favorable
experience with bank, 10-13.
2. What is the most important service your bank now provides for
you? (First figure, first choice;
s e c o n d figure, second choice.)
Bu si n es s loans, 31-6; personal

services, 5-13; good business ad
vice, 6-6; personal contact, 2-7;
drive-in banking, 4-9; evening
bank hours, 0-0; safekeeping serv
ices, 2-1; preparation of payroll,
0-0; courteous tellers, 7-4; trust
services, 0-0; investment advice,
0-0; accurate account handling,
12-13; quick service for business
deposits, 3-3; after-hour deposi
tory, 2-1.
What is the best new service
your bank has started in recent
years? Drive-in facilities, 39; bank
by mail, 1; improved facilities
(expansi on, modernization), 4;
after-hour depository, 4; liberal
ized loans, 2; SB A loan par
ticipation, 1; issuance of account
numbers, 1; periodic mailing of
account statements and cancelled
checks, 1.
Does any officer of your bank call
on you in your place of business?
Yes, 25; No, 53. If yes, how often?
At least monthly, 10; quarterly,
4; semi-annually, 4; annually, 6;
when requested, 3.
Do you think the banks in your
community have a large enough
capacity to meet your lending
needs? Yes, 78; No, 2.
Does your bank have any type of
business forum, conference or

GRAPH II
W hat are the most important services your bank now provides for
you?
Business Loans

Accuracy

Personal Services

WÊÊÊÊÊÊÊ

mmmmmmmmm

Drive-In Service

Courteous Tellers

Number of Replies

Total first and second choice replies to question:
First Choice
Second Choice

25
138

meeting for local businessmen?
Yes, 7; No, 59.
7. Do you rate the service of your
bank sufficiently good to recom
mend it to another business firm?
Yes, 62; No, 4.
8. What do you like least about your
bank or its staff? Attitude, 3;
failure to provide business infor
mation, 4; excessive charges, 2;
inadequate parking, 1; poor public
relations, 1; inactive small loan
department, 1; inability to handle
peak traffic, 3; inability to remain
confidential, 3; lack of community
interest, 1; ultra-conservatism, 3;
the president, 1; no private dis
cussion room, 1.
Additional Information

1. Types of businessmen polled: Re
tailers, 61; wholesalers, 6; profes
sionals, 3; contractors, 3; manu
facturers, 5. (A total of five
neglected to report their busi
nesses.)
2. Number of questionnaires sent,
487; number returned, 83.
3. Questionnaires sent to nine cities
and towns in the midwest. Size
of communities varied from 7,000
persons to a population of 500,000.
Conclusions and Suggestions

Conclusions derived from the infor
mation provided by the businessmen
questioned, with their corresponding
recommendations, are as follows:
1. Banks which do not now offer
drive-in banking facilities might do
well to consider addition of such facili
ties for the benefit of their businessmen-customers as well as the general
public.
2. Scheduled visits to businesmen,
in their places of business, may en
hance the image of the bank in the
eyes of its business customers. It may
also result in an increased awareness
of the local business picture. Differ
ences, too, may be alleviated through
such contacts.
3. Issuance, to businessmen, of lo
cal “business barometer” readings on
a periodic basis is appreciated by busi
ness customers.
4. Conducting business forums, spon
sored by the bank, is another means
of enhancing the bank’s public rela
tions among its business accounts. In
addition, it may also result in in
creased understanding of the business
men’s problems. (One contractor noted
that he felt his bankers “don’t know
as much about my business as they
think they do.” ) Such forums may
also dissolve misunderstandings be
tween the bank and its business cli
ents.
5. Courtesy, at every level, is of ut
most importance.— End.
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

32
4

4 'hi ca ffo fla n k s A n n ou n ce
M e r g e r A t IJ v esto ck C on feren ce

M ALC O LM FR EE LA N D

Publisher

HE directors of Central National
Bank in Chicago and the direc
tors of the Live Stock National
Bank of Chicago have agreed on a pro
posed merger between the two banks.
The merger plan is subject to share
holder and regulatory authority ap
proval.
The announcement was made jointly
by Frank E. Bauder, president, Cen
tral National Bank, and Robert E.
Hamilton, president, Live Stock Na
tional, during the Correspondent Con
ference sponsored by the latter bank
in conjunction with the International
Livestock Show in Chicago early this
month.
All officers and staff of the Live
Stock National will move to the Cen
tral National’s loop location at 120
South LaSalle. The Yards banking
facilities will be closed in accordance
with Illinois law. Mr. Hamilton will
become senior vice president, Central
National, and be named to Central’s
board of directors. He will direct the
merged bank’s correspondent banking
and agricultural industry activities as
well as supervise the servicing of na
tional accounts.
David L. Reimers, who retired ear
lier this year as president of the Live
Stock National, will move into an ac
tive position with the merged bank
with the title of chairman of the ad
visory committee on agriculture.
Live Stock directors who will go on
Central National’s board in addition
to Mr. Hamilton are:
James F. Donovan ,trustee, Central
Manufacturing District; Thomas Tyler

Joseph E. Lisek, v.p. of Live Stock Natl.,
chats with one of the veteran registrants
at the host bank’s annual conference, P. A.
Blackford, a retired Iowa banker, now
living in Ottumwa.
Northw estern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

of Winston, Strawn, Smith, and Pat
terson, and Charles S. Potter, presi
dent, Union Stock Yard and Transit
Company.
The Live Stock National Bank was
established in 1868 and for almost 100
years has been one of the leading
banks in the United States in the field
of agricultural credit.
Central National was located at
Roosevelt and Halsted Roads for 25
years before moving to LaSalle Street
three years ago.
The merger proposal calls for an
exchange of 155,000 shares of common
stock of Central National Bank for $4
million in capital funds of Live Stock
National Bank. Live Stock National,
which has total capital funds and re
serves of $6,757,179, will reduce, with
government approval, its present cap
ital funds to $4,00,000 of capital and
surplus. William Wood Prince is the
major shareholder at the Live Stock
National.
Using the last bank call figures of
October 1, 1964, the combined banks
would show total deposits of $268,519,358 and total assets of $292,933,974 after
the capital reduction. At that date
Central National had total deposits of
$217,504,732 and total assets of $237,427,824. Live Stock National reported
total deposits of $51,014,626, and total
assets of $55,505,250, with the capital
adjustment. The new legal lending
limit for the merged bank will be
$1,650,000.
The important merger announce
ment overshadowed all other features
on the Live Stock National’s program.
Over 400 country bankers in attend
ance were taken by surprise as the
news was presented to them by Cen
tral’s president, Frank Bauder. First
reaction by some was that the merger
might put an end to the annual live
stock conference. Mr. Bauder and Mr.
Hamilton assured the group that the
merged bank will continue the meet
ings and expand them in scope. Most
bankers were pleased that they were
given the news of the merger first—
before it was published in the news
media.
Howard Beermann, vice president
of the Live Stock National Bank, pre
sented a special livestock outlook re-

Frank Bauder (left), pres, of Central Natl.,
and Robert E. Hamilton, pres, of Live
Stock Natl., exchange congratulations fol
lowing joint announcement of intention to
merge the two banks.

port by Fran Huff, assistant vice
president of the bank. It was pre
dicted that fed cattle prices next
spring to early summer will be well
above the low levels of that time in
1964. By year-end choice grade fed
steers at Omaha are likely to be above
$25 again. Prices should hold their
own in January and February. With
a probable strengthening in fat cattle
prices in the near-term, feeder cattle
prices won’t likely go any lower.
Hog prices should strengthen so
that a $17 winter-spring market may
develop. Winter slaughter, while per
haps larger than pig surveys indi
cated, will probably run under that
of last winter.
Other features of the Conference
program were a presentation by N. P.
Crockett, partner, Ernst & Ernst, Chi
cago, on Audit Control in Banks, and
a talk by H. E. Cortwright on The Rev
enue Act of 1964. Following the for
mal program, the group was enter
tained at the Stock Yards Inn and the
International Live Stock Show.
Following the Conference, Central
National purchased the Grand Cham
pion steer, an Angus owned by an Illi
nois girl, for $17,500.

4
4

ÀX

E. A. Hayes (left), pres, of Hillsboro Sav.
at Hillsboro, Iowa, and dir. of Henry
County Sav. at Mt. Pleasant, Iowa, visits
with Robert E. Hamilton, pres, of Live
Stock Natl.

Toward “ Tough-Minded” Management”

The Consultant's Hole
In Im proving Hunk Operations
,

DR. ED ANSON

J. D. BATTEN

Head Financial Division

President

Batten, Batten, Hudson
& Swab, Inc.

ODAY’S bank executive officers will attest to the
fact that the managing of a bank is much more com
plicated than it was a generation or more ago. The
rapid expansion of bank services in the past two decades
has necessitated the need for top management to be
more aware of detail. Since World War II management
has had to orient its thinking more and more toward
over-all productivity and profit in order to meet the
rising competition in salaries, fringe benefits, interest
and expanded services of other financial institutions.
In banks of all sizes everywhere, to keep the commer
cial banking system functioning well and competitively
in the financial community, there has developed the need
for recruiting, training and developing capable men and
women for management responsibility. This is perhaps
the most critical need in the coming years.

Successful Approach

One of the most successful approaches found by execu
tive management is the growing use of management con
sultants, firms who help with every type of management
procedure and development of human resources.
J.
D. Batten, president of Batten, Batten, Hudson &
Swab, Incorporated, Des Moines, Iowa, is the author of
“ Tough-Minded Management,” a book that is currently
one of the top conversation pieces among management
people from New York to Los Angeles. It is presently
the fastest selling of all volumes on management. An in
teresting discussion of the book appeared in a recent issue
of the Harvard Business Review. Because of the success
the Batten firm has achieved in the areas of management
development and advisory service, the N o r t h w e st e r n
B a n k e r interviewed Mr. Batten concerning how these
services might be applicable to banks. He was enthusi
astic about the opportunities bank management has as a
vital force in financing America’s growth.
Need and Desire

He feels there is a need and desire for management
consultant services for all banks. This, he said, led him

to expand the firm’s staff of experts this year by adding
Ed Anson to head a Financial Division. Dr. Anson is a
former staff member of the American Bankers Associa
tion and has had considerable experience in working
with bank management.
Mr. Batten was asked for specific ways in which bank
clients have been assisted.
“We have found that banks have a real need for the
very kind of blueprint for profit and growth which they
look for and seldom find in their own customers.
“They need employees and officers who have been
carefully selected, thoroughly trained and who can re
flect enthusiasm which is infectious. They need a pro
ductive and thoroughly-organized management climate.
“Not long ago, several members of the staff and I had
just completed presenting a one-day seminar in a midwest
city which included assorted bank officials. Heavy stress
had been placed on the principles we have used in banks
and assorted companies of all kinds which have stimu
lated real growth and profit.
“At the end of the day a bank vice president asked me
to meet with the president of his bank, who had read the
book, ‘Tough-Minded Management.’
“When I met the president he said, T want a bank
which is tough-minded throughout. I want the kind of
people, policies and systems you have described.’
What Was Done

“We did this with the bank in point, starting by an
alyzing the officer staff. We held 10 two-hour sessions
for training, as well as having individual interviews with
these men. We analyzed systems. We worked with
each individual department manager to help him get his
own department streamlined, simplified and organized.
Our goal was to help build the departmental officers and
help them sharply increase the productivity of their de
partments.
“We studied basic attitudes, we held individual and
MANAGEMENT CONSULTANT . . .

(Turn to page 44, please)
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Federal Reserve Bank of St. Louis

Banker,

D ecem ber,

1964

Helpful
P u blic

Relations
Tool

Estate Planning for
NDOUBTEDLY, there are many
farmers and bankers alike who
think of estate planning as an
unnecessary luxury. Their feeling is
that if the farmer or rancher survives
the numerous perils of weather, costs
and prices with any estate to worry
about, maybe Allah will take over the
planning and worrying chores from
that point on.
Farming and ranching have become
sufficiently complex, the credit re
quirements are now so great and the
impact of taxation or other dissipating
factors is so burdensome that farmers
and ranchers, as all other business
men, must be considered important
candidates for an estate plan.

Who Does Planning

Accepting this as a premise, who or
what institution should concern itself
with the planning and administration
of the farm or ranch customer’s es
tate? I would like to suggest to you
that there are at least two important
reasons why the agricultural banker
should become active in this field.
The first reason is directly related
to public relations and your bank’s
competitive position in the industry
and community. If an agricultural
bank is organized and prepared to be
of assistance to its customers in the
planning and administration of es
tates, it obviously has one more serv
ice to offer and one more tool to em
ploy to attract and hold customer busi
ness. Thus, “one-stop banking,” “fullservice banking,” “complete financial
service” or whatever may be your
trade slogan becomes more meaning
ful.
Traditionally, the country banker
has always been called upon to serve
as advisor to his customers in family
Northwestern Banker, December, 7964

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Federal Reserve Bank of St. Louis

as well as financial matters. In many
country banks the senior officers have
often been requested to assume re
sponsibilities as executors, guardians
or trustees. Frequently, this service
has been rendered cheerfully but with
out the careful planning or the
strength and continuity that could
have been provided if the bank itself
had been organized, equipped and
qualified to render such services. Un
fortunately, there have been occasions
when the well-meaning officer, acting
individually, has invited personal lia
bility and criticism of his institution
by performing in situations in which
the planning, draftsmanship and ad
ministration left something to be de
sired. Such unhappy experiences are
very hard on good public relations and
are the reverse of what we strive for.
The negative aspects and the potential
liability for the unprepared are very
important and are not to be disre
garded—in fact, the profit potential for
many years may not completely jus
tify the liabilities. Why, then, assume
the risks?
Other Business Customers

The public relations value of being
able to offer such a service successful
ly in the community has already been
mentioned as it relates to the farm
customer. Almost of equal importance
is the public relations value of work
ing closely and constructively with
local attorneys, insurance representa
tives and accountants. The contacts
with these people can be of mutual
benefit and can open many avenues to
new accounts and additional income
for the bank. Each successful asso
ciation established with such a profes
sional man is an entree to some of the
other business of his many clients.

The second major reason why an
agricultural bank should be active in
the estate field, although partially a
public relations reason, is also a basic
matter of economics and a concern of
the bank’s loan officers. The increas
ing size and merchanization of farm
and ranch units has resulted in tremendous new demands for credit. Generally, land debt increases, capital debt
for machinery increases and livestock
loans increase as farm operations tend
to get larger. At the same time the
anticipated pay-out periods tend to
lengthen.
Provides Transition

Thus sound financing of larger units
often requires a projection which the
unexpected death of the owner or op
erator could seriously disrupt. The
lender must not only have an intimate
knowledge of the current operation,
but he should also know what provi
sions have been made for an orderly
transition if and when the boss dies.
Assured continuity of operations and
management are as important in large
agricultural credits as in other major
business loans. The alternative is to
regard the death of every important
borrower as the automatic signal for
a liquidation sale. Such a sale may or
may not be timely and may or may
not resolve the lender’s problems. Sel
dom will it provide the solution de
sired by the decedent or his family.
The best interests of the customer,
his family and his banker can be met
only by intelligent planning during
the lifetime of the customer. Some
persons, unduly influenced by super
stition or morbidity, shrink from a
frank discussion of after-death plans
for property. I believe, however, that
as our farm customers grow more

^
'

-4

i
v

Farm Owners

■
'

knowledgeable about the devastating
effects of taxation, probate costs and
liquidation sales, the reluctance to dis
cuss estate plans becomes more and
more rare.
Changing social patterns in the ag
ricultural communities also have a
bearing on the need for sound estate
planning and on the part the bank
can play in both planning and admin
istration. Divorces and remarriages,
while probably not yet as common as
in the metropolitan areas, are more
frequent in the country than years
ago; thus provisions must be made for
divorced spouses and second families.
The time-honored concept of letting
property pass by the statutes govern
ing intestacy or by joint tenancy with
the right of survivorship may work a
real injustice and hardship on family
members and lender alike.
Statistics also indicate that many of
the younger members of farm families
who leave for city jobs have little desire or training to return to the bur
dens of farm management in the event
of Dad’s death. In such a case, the
agricultural bank may have another
opportunity for service.
Country Bank Advantages

Let us consider for a moment some
of the advantages that the local coun
try bank has in this field of estate
planning and administration and then
consider some of the pitfalls and dan
gers in the area.
Many bankers feel that the fields of
estate planning and administration are
so complex and involve such special
ized knowledge and expense that the
country bank has no proper place in
the business. There is certainly some
truth in that position, but there is
equal truth in the statement that if
the country banker recognizes his

abilities and limitations his bank may
render a greater service in the estate
field than the city bank with the high
ly organized trust department.
In the first place, not all city banks
with efficient trust departments under
stand the operation of a farm, ranch
or livestock business. Risks and types
of investments that we accept as rath
er normal aspects of daily life may be
quite foreign to the city-oriented trust
officer. Decisions regarding farm prop
erty and practice, which involve fa
miliar factors for the country banker,
may be quite new and difficult for the
city counterpart. And certainly not
least of all is the matter of communi
cating with a rural client or members
of his family. The representative of
the large city bank, though able and
qualified, just may not speak the lan
guage nor appeal to the rural citizen.
Real Opportunity

Even the city bank’s trust depart
ment, which is adequately staffed with
men who understand the problems of
agriculture and are able to gain the
confidence of the farm customer, may
have other problems brought about by
physical distance from the estate prop
erty and the time necessary to go back
and forth.
All in all, the country banker by
reason of his personal knowledge of
the family, of the particular farm or
ranch and of agricultural conditions
in the community would seem to be
equipped to make a real contribution
to the planning and administration of
his customer’s estate.
However, the wise and prudent
country banker will recognize the re
sponsibilities and liabilities as well as
the costs involved in the operation of
a department offering these services.

Following are excerpts, of p a rtic
ular interest to readers of the
NORTHWESTERN BANKER, from an
address given by Theodore D. Brown,
president of the Security S ta te Bank,
Sterling, Colorado, before the 13th
N atio n al Agricultural C red it C o nfer
ence sponsored by the agricultural
com m ittee of the American Bankers
Association a t Memphis, Tennessee,
last month.

He will recognize and operate within
the limitations of the knowledge and
organization at his disposal. He will
recognize that in most cases the oper
ation of a trust department offering
services such as we have been consid
ering is not a profitable departmental
operation for some years after its
launching.
Must Prepare Well

Many small banks that clamor for
trust powers are not staffed or
equipped to accept the responsibilities.
The s u p e r v is o r y authorities quite
properly take close looks at applica
tions for the right to exercise full
trust powers when the staff and fa
cilities are not consistent with the
proposed program or the potential of
the area.
The conscientious and informed
country banker who is interested in
this field is aware that it is no longer
sufficient to keep in his desk a supply
of printed will forms that may be filled
out w ith nam es and dates and
amounts. This type of estate plan
ning service should have disappeared
at the same time that he threw away
the inexpensive set of spectacles kept
in his desk drawer for the use of any
customer who might have forgotten
his own. In neither case is the tool
sufficient for the need.
The country banker who is doing a
good job in this field recognizes the
complexities of modern tax laws, cor
porate organization and accounting
procedures; and if his own organiza
tion is not adequate, he does not hesi
tate to refer his customer to the serv
ices of specialists when necessary. In
any event, he recognizes the necessity
ESTATE PLANNING . . .

(Turn to page 56, please)
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Federal Reserve Bank of St. Louis

Banker,

D ecem ber,

1964

Hanks K eep Prim e Hate at 4 1/'2%
Federal Reserve Board Raises Savings and Time Rates

TRONG pressure from no less a
personage than President Lyn
don Johnson appears to have
forestalled any move on the part of
commercial banks to increase their
prime lending rate from the present
4V2 per cent, where it has been pegged
since August, 1960 when it was re
duced from 5 per cent.
Triggered by Great Britain’s jump
in its bank rate from 5 to 7 per cent
late last month to battle a speculative
attack on the pound sterling, the Fed
eral Reserve Board in Washington au
thorized the 12 Federal Reserve banks
to increase the rediscount rate from
3V2 to 4 per cent. Action on this step
was followed within a few days by
directors of each of the banks.

Prime Rate Watched

At that point, top banking authori
ties, bankers in the nation’s leading
financial centers, and corporate offi
cials kept a minute-by-minute watch
to see if any bank would break up
ward with its prime rate, since banks
normally try to maintain a 1 per cent
spread between rediscount and prime
rates. Citizens & Southern National
Bank of Georgia was the first to an
nounce a 4% per cent prime rate, the
first time since 1956 that a bank out
side New York had been the first to
do so. That was on Friday, Novem
ber 27. On Monday, November 30, The
Union Bank in Los Angeles broke up
ward to the 43A per cent prime rate.
In the meantime, however, the First
National Bank of Boston also an
nounced its increase to 4% per cent
on Friday. But after President John
son’s message of Wednesday, Decem
ber 2 , when he said the government
looked with disfavor on a prime rate
increase, the First National of Boston
officials reconsidered and the following
day rescinded Friday’s action and re
turned to 4% per cent. This appears
to have put a prime rate increase to
rest for the time being.
Speculation among bankers now is
whether the President will try to dic
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Federal Reserve Bank of St. Louis

1964

tate bank rate terms to commercial
banks as he has done on prices to the
steel industry.
Savings Rates Go Up

Allied with this action and starting
at the same time was the Federal
Reserve Board’s authority granted to
banks to increase rates of interest
paid on time and savings deposits.
Under the new regulations the permis
sible maximum rate on time deposits
(including Certificates of Deposit) is
increased to 4% per cent for those
with maturities of 90 days or more,
and to 4 per cent for those with 30 to
89 day maturities. The latter is an
innovation, since it previously had
been a 1 per cent rate for maturities
less than 90 days. The previous rate
for maturities of 90 days or more had
been 4 per cent.
On passbook savings deposits, the
permissible maximum rate of interest
has been fixed at 4 per cent. Previ
ously this rate was 3% per cent on de
posits under one year, and 4 per cent
for one year or more.
These rate increases were designed
to permit banks engaged in interna
tional competition for such deposits to
have competitive rates, although they
may be used by any bank in the
United States.
New York Action

Major New York banks went to a
4 per cent rate on all savings deposits.
Before, they paid 3% per cent for
those less than one year and 4 per
cent on those in the bank more than
one year. Banks in other cities were
proceeding cautiously, although Bank
of America and Crocker-Citizens Na
tional in San Francisco did raise their
CD rates from 4 to 4% per cent on
time deposits for one year, 3Fs to 4Vs
for those in a 6 to 12 month period,
and 3% to 4 per cent on the 3 to 6
month CD’s.
At press time, no move had been
learned of from New York to advance
CD rates above the 4 per cent level.

Elsewhere, action to increase sav
ings or CD rates was limited. In Den
ver, for instance, three of the cities
largest banks and 12 smaller ones an
nounced they were raising savings
rates to 4 per cent regardless of how
long the money is on deposit. Banks
in most other parts of the nation were
content to let rates remain “as is” for
the time being.
FJ)IC Statement

FDIC Chairman Joseph W. Barr
and FDIC Director K. A. Randall
jointly issued the following statement
on action permitting savings and time
deposit increases:
“ The Federal Deposit Insurance
Corporation is acting jointly with the
Federal Reserve System in this move
with full awareness of the Federal
Reserve’s primary responsibility for
monetary actions. The increase of the
rate is a reflection of the present in
ternational position, and carries out
the Federal authorities’ responsibility
in this field.
“At the same time we would urge
banks which are not directly involved
in the international area and not under
direct pressure from international
rate structures to exercise the great
est prudence under the new rates. We
suggest that hankers all over the na
tion resist upward rate pressures un
less the strengths of their own port
folios and continued sound credits
amply justify any upward action.

“The new rates are designed to
allow the banking system to respond
to an international adjustment. They
should not in any sense be used for
speculative purposes or for unsound
competitive drives.”
Premature in Denver

In the area served by N o r t h w e st e r n
B a n k e r , the Denver action appears
at press time to be the only one
taken for higher savings rates. ColPRIME RATE . . .

(Turn to page 40, please)

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Member Federal Deposit Insurance Corporation
FRanklln 2-9200

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Banker, D ec e m b e r,

1964

i d Berry

T H E P A N E L O N O U T L O O K S . Prom left: Earl L. Butz, Dean of the School of Agri
culture, Purdue University; Ezra Solomon, professor of finance, Stanford University;
L. J. Berry, a.v.p., First National Bank, who presided, and J. C. Downs, Jr., chm. of the
board, Real Estate Research Corporation.

1st of Chicago Speakers Predict

Strettiif Itnsiness

'(».*
By LARRY NOTH WE HR

Associate Editor
optimism was the
word of the day as a variety of
speakers addressed the 18th Annual
Conference of Bank Correspondents
held early this month by the First
National Bank of Chicago. The more
than 2,000 bankers and wives who at
tended this two-day affair returned to
their banks with a broad background
of information on general outlook and
bank management.
Because of enlarged facilities, the
First National was able to host both
bankers and their wives together at a
reception and dinner. Homer J. Liv
ingston, chairman, presided at the din
ner and introduced a former member
of the First National family, John
Nash Ott, who addressed the group.
Mr. Ott, who is director of Time-Lapse
Research Foundation, Inc., and presi
dent of John Ott Pictures, Inc., pio
neered time-lapse photography while
with the bank and reviewed develop
ments since it became a business rath
er than a hobby.
Vice presidents in charge of the 11
e s t r a in e d

lending divisions of the First Na
tional Bank reviewed the outlook for
the various industries served by their
divisions. In brief, here is what they
anticipate for 1965;
With reducing imports and continu
ing increased consumption, the cattle
and hog industry can look for slightly
higher prices in the next 12 months.
Retail stores and clothing sales will
be up in 1965, but profit levels gener
ally will be down. Assuming a favor
able settlement of labor problems in
the steel industry, the automobile and
farm machinery people can look to
another fine year. Installment sales
finance and consumer finance compa
nies will continue to expand in 1965.
The food industry, with continued ex
pansion and diversification, will expe
rience another fine year. The housing
industry will continue to expand but
at a slower rate. Residential construc
tion, a key sector of the total picture,
is the biggest question mark with an
expected leveling off at the record lev
els established in 1963. Public utilities,

airlines, railroads and motor freight
will continue to do very well during
the coming year. Brokers are expe
riencing an excellent year and the
outlook is very good for a continua
tion. Continued low prices in the oil
industry will hold profits down again
in 1965. Construction will increase,
but increasing costs will mean con
tinued difficulty in presenting a good
profit picture. Recent developments
in the foreign picture indicate stepped
up activity by the government in the
aerospace industry. Thus, the elec
tronics industry will show another rec
ord year in 1965.
D iscu s s in g T ren d s in Banking,
Charles F. Newhall, vice president of
Division F serving Banks and Bank
ers, said, “ Taking all factors into con
sideration, the prospects for good bank
earnings are quite favorable for 1965.”
The factors cited by Mr. Newhall were
such things as increasing interest rates
on savings, possible decreasing rates
on mortgages and the ever present
threat of an inflationary boom. To
combat the pressures on bank manage
ments to obtain better profits to meet
already heavy and steadily rising ex
penses, there has been a trend to les
sen the quality of portfolio invest
ments and expand loan ratios. Bank
ers were cautioned to re-examine poli
cies and portfolios in view of the some
what cautious outlooks for the econmy in 1965.
Management

Joseph Fenner, vice president of
Loan Division F, presented a thorough
discussion on the subject of Bank De
bentures. With the help of slides, he
was able to demonstrate graphically
the manner in which this compara
tively new means of raising bank
funds can work for most banks, re
gardless of size. By comparing the
cost and return from 4 per cent time
deposits and 5 per cent debentures, it
was pointed out that the cost of de1ST NATIONAL . . .

(Turn to page 42, please)

is the speakers’ table at the business outlook symposium. Featured were vice presidents in charge of the various
loan divisions at the First National Bank.

SHOW N ABOVE

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Federal Reserve Bank of St. Louis

1964

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N o rthw e ste rn

Banker,

D ecem ber,

1964

f i a nsas Ci/if

IV í/ To Itilih !
THE FE D ER AL
K A N S A S C IT Y

RESER VE

BANK

will begin construction
soon on a $2.5 million service and parking
addition to its 21-story building in down
town Kansas City. The building will have
seven floors with only four stories above
ground. Parking spaces will be provided
for 290 cars for bank employees and ten
ants and the other floors will be used for
service departments of the bank and for
a security entrance. Construction is ex
pected to be completed by the fall of 1900.

LANS for a $2.5 billion multi-level probably by mid-1965. Buildings to be
service and parking building on demolished include the seven-story
the northwest corner of Tenth andReliance building and two smaller
McGee Streets were announced last structures, including the bank’s pres
month by the Federal Reserve Bank ent garage and security entrance.
of Kansas City. The new structure Completion of the new building is ex
will be immediately east of the bank’s pected by the fall of 1966. The Kan
21-story building on the northeast cor sas City firm of Ivivett and Myers is
architect for the building.
ner of Tenth and Grand.
Parking space for 290 cars will be
The building will have seven floors,
but only four stories will be above provided on the top three floors for
ground on the McGee Street side. The bank employees and tenants. The
top three floors will be used for em bank leases several floors in the up
ployee and tenant parking and the per part of its 21-story building to
other floors will house various service private firms. The new building and
the present bank will be connected by
departments of the bank.
Construction will begin as soon as an underground entryway as well as
buildings now on the site are cleared, by an overpass on the alley.

Morirne H a te . . .
(Continued from page 36)
orado Bank Commissioner Frank E. bank under jurisdiction of the bank
Goldy has informed us that the state ing department shall pay more than 4
banking code provides that inter per cent on both savings of CD’s. This
est rates shall not be listed beyond specifically applies to state banks and
3 per cent per annum without ap trust companies, but no word had
proval of the board. The next board been received at press time that any
meeting was not scheduled until De national bank was jacking up its sav
cember 17, but the banking board was ings rates further.
polled by telephone for approval so
No Requests in Minnesota
announcement of approval of the Fed
John Chisholm, Minnesota banking
and FDIC moves could be made. How
ever, the Denver banks proceeded to commissioner, said the federal action
announce their upward savings rate will have no effect in Minnesota, since
revisions before this announcement state law fixes the maximum rate of
interest that may be paid on savings
was official.
In Iowa, state law provides that no at 4 per cent. This applies to both
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

state and national banks in Minnesota.
There is no expressed desire at this
time by Minnesota banks for permis
sive increases in rates. Presently, city
banks in the state are paying 3 per
cent on passbook savings and 4 per
cent on yearly CD's. County banks are
paying from that point down to 2 per
cent on passbook savings.
In Montana, the state laws do not
limit the amount of interest that may
be paid on time deposits by either
state or national banks, according to
Albert E. Leuthold, superintendent of
banks. He said the superintendent is
not given authority either to regulate
rates of interest paid on these ac
counts.
South Dakota’s superintendent of
banks, Oscar Brosz, reported that the
South Dakota code “provides that our
Commission set the rate of interest
that may be paid on time deposits.
Our Commission has not met since
the last raise of the rate of interest
that may be paid on these deposits.
There will be no change until the Com
mission meets in regular session.”
North Dakota law provides that
banks there may pay interest on de
posits of 4 per cent per annum with
out approval and up to 6 per cent
per annum with approval of the state
banking board, according to Eugene
Rich, state examiner. All approvals
are to be granted on a county wide
basis. No applications have been filed
at this time, Mr. Rich reported, to
pay more than 4 per cent. National
banks follow state law in North Da
kota on these rates.
Increase in Nebraska

The only state to announce a permis
sive increase was Nebraska, whose
laws governing such rates are by
regulation of the state banking direc
tor and not by state code. Henry Ley,
director of banking, on November 27
issued an automatic revision to pre
vious regulations authorizing state
banks in Nebraska to pay 4% per cent
on CD’s of one year or more and
maximum 4 per cent on savings. None
of the national or state banks have
announced and apparently do not in
tend a raise from present levels, but
the permission was inserted in regula
tions should the need arise.
Throughout the midwest, feeling
seems to run against any outlook for
increases in CD’s or savings rates
because lending rates have remained
stable for some time and the outlook
is that they will continue to do so.
With heavy competition from PCA’s
and Federal Land Bank sources for
agricultural loans, commercial banks
presently cannot increase loan rates
and have no desire to do so.—End.

new bank service,
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Report HOWARD C. HANSON, Sr., President
& HOWARD C. HANSON, Jr., Vice President,
Blair Bank, Blair, Nebraska

“United American Life’s new ‘Worth Preserver' Plan has proved to be as good for our bank customers
as has our revolutionary new circular building, both ‘firsts’ in this area. First in new bank design and
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For more than 25 years, our company has pursued an
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insurance in force (cu rre n tly over $ 3 0 0 -m illio n ) and
n e t in te re s t earnings exceed th e 5-year average of
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Federal Reserve Bank of St. Louis

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Faith In Your Future

UNITED AMERICAN
Life Insurance Company
W . W . Wilson, Jr., President
Now in 31 States

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Northwestern Banker, December, 1964

1ST NATIONAL . . .
(Continued from page 38)
benture funds is cheaper than savings
deposits and only slightly higher than
other time deposits. In summarizing,
Mr. Fenner stated that debenture
financing can well increase the re
turn on a stockholder’s investment,
but its use must be accompanied by
competent bank management.
Dr. Paul Nadler, Associate Professor
of Finance at New York University,
emphasized that there is need to make
certain that 4 per cent savings do not
actually lose money. Pointing out that
with the many added costs these sav
ings can well cost a bank 6 per cent.
This must be continually kept in mind
when investing these funds.
Speaking on this same general sub
ject, Kenneth DuVall, chairman of the
Merchandise National Bank in Chi
cago, emphasized the importance of
sophisticated asset management in
maximizing investment returns in the
face of increasing rates paid on time
deposits.

Tilford Gaines, vice president of the
First National Bank, presented a gen
erally bright picture for interest rates
through 1965. Though our current
expansion period is now nearly four
years old, he cited that most econo
mists expect it to continue at least
through the first half of 1965 with a
slight slow-down during the last six
months of the year. Consumer credit,
according to Mr. Gaines, will expe
rience a net growth about as large as
this past year. A similar pattern is
suggested for mortgage credit. Bor
rowing by the Federal government
could well be much smaller than has
been typical in most recent years.
Gross new issues of tax-exempt bonds
probably will again set a new record
in 1965, but the net demand for credit
from state and local authorities is un
likely to increase. Corporate credit
requirements may be expected to in
crease significantly in 1965.
Dr. Earl Butz, Dean of Agriculture
at Purdue University, presented a well
received discussion on a bright, long-

term picture in agriculture. Though
fewer people are producing the na
tion’s food and fiber, they are produc
ing much more due to increasing con
tributions of science and technology.
However, he pointed out, with increas
ing amounts of feed, fertilizer and
equipment necessary to lower unit
cost of production, the need for capi
tal is great. It was emphasized that
if banks do not meet this need, govern
ment agencies will.
Ezra Solomon, Professor of Finance
at Stanford University, summed up
the thinking of most speakers at the
conference when he said that he be
lieves the current expansion will con
tinue through the end of 1965, but at
progressively slower rates as the quar
ters roll by. He suggested a tax cut
of some kind about mid-year to bol
ster the economy and predicted that
the Congress would soon act favor
ably on a $3-$4 billion cut in excise
taxes.— End.

Plan IBA Convention Tour

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Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

Otto Preus, vice president of the
Marquette National Bank, Minneapo
lis, and “tour director” for Independ
ent Bankers Conventions, is making
plans for a pre
convention trip to
Nassau.
The IB A w ill
hold its annual
convention at the
Diplomat Hotel in
H ollywood, Fla.,
A p r i l 8-10. Mr.
Preus is also mak
ing plans for a
special train to go
o . H. PREUS
direct to the con
vention with points of origin at Min
neapolis and Chicago.
Details on the pre-convention tour
will be announced soon. Interested
parties should contact Mr. Preus and
express their interest now.

New Senior Officers
Franklin Stockbridge and Paul L.
Smith have been named senior vice
presidents of Security First National
Bank, Los Angeles.
Mr. Stockbridge, 44, heads the bank
investments and bond department. He
is in charge of the bank’s investment
portfolio and all bond underwriting
and trading activities.
Mr. Smith, 46, is in charge of the
bank’s control services department,
which includes controllers, computer
operations, general accounting, insur
ance, taxes and bankers’ equipment
division.

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Northwestern Banker, December, 1964

The 1 1 « ##ui j emn it Consultant ‘s ito le

(Continued from page 33)
private counseling sessions with all key people. We helped
them to recognize, and build on, strengths they already
possessed as well as the discovery of new ones. We rec
ommended for promotion people who deserved it.
“The president was provided with a written evaluation
of each person and how to best use his talents as the
bank picked up tempo and vigor. Other things too numer
ous to mention here were accomplished and you can be
assured that a new and tough quality of mind could
readily be discerned throughout the bank.
“The bank management was in complete accord with
our findings and the results produced. We are still with
this bank on a retainer basis and are following through
on a systematic, but decelerated, basis to provide continu
ing guidance and up-to-date innovation. It is encourag
ing to see in this bank today a dynamism and optimism
among the officers and staff that has created a new and
good climate for the staff and the customers.”
Importance of Management

Mr. Batten and Dr. Anson stress the importance of the
need of strong management for banks of all sizes if our
economy is to continue as we have known it. They
noted that the lack of strong leadership in our banks will
most probably cause competition from other forms of
financial institutions to weaken their position in our
economy and eventually create a real or imaginary excuse
for the federal government to take over the deposit cur
rency function.
“Bankers,” they say, “ should strive to keep pace with
the dynamic growth of our economy. They should seek
new ways of serving their communities’ business needs.
Competition can only be damaging when its products or
services are better and are sold at a competitive or lower
price. The bank that is cost-conscious, efficiently man
aged and aggressively seeking to keep pace with the
needs of today and tomorrow need have no fears.”
Dr. Anson, whose background includes service as a
professor, chairman of a department at a large eastern
university and consulting work for banks prior to his
joining the A.B.A., was asked to list some specific bene
fits to banks through the use of the resources of a firm
such as his:
1.
When you hire a consultant, he is part of your
bank’s team, and not a member of someone else’s team.
His reputation and the reputation of his company is mar
ried to that of his client. His every energy and every

strength of his firm is geared toward the success of the
bank; for, like a bank, his success is dependent on satis
fied clients—customers.
2. If a specialist is hired to aid a bank in an area such
as accounting, systems analysis, investment or advertis
ing, the questions he must answer are specific and, there
fore, the answers must be given in a vacuum quite unre
lated to the entire complex of the bank. The general
consultant, working with the entire operation, can help
the banker make decisions that take into consideration
both the short and long range objectives of the bank as a
whole. Not only is the general consultant aware of the
complete operation of “his” bank (and no two banks are
alike) but he knows that success depends on the motiva
tion, ability, accountability and leadership given to the
bank’s personnel. He knows the strengths and weak
nesses of the bank’s personnel and how true progress
is made by building on strengths and by eliminating, or
at least strengthening, existing weaknesses.
3. When a general consultant is engaged for a specific
assignment within a bank he brings with him an aware
ness of all areas affected by decisions made in this specific
area. He is, therefore, better able to advise the bank’s
management on the total expected effect of any decision
made.
4. Too often the novice considers the management con
sultant as a problem-solver when the “house is on fire.”
Actually they should be used, and are used by most firms,
to improve an already good operation.
5. Large banks have found the need for economists on
their staffs, although the cost of such a person on the
staff of a small bank is prohibitive. A management con
sultant can do much in advising the bank’s management
on what indices to observe and how to translate this in
formation. The general consultant can assist the bank’s
president in anatyzing his local and area markets, help
him to discover how to better serve these markets, and
how to keep abreast of needs created by new trends in
business, farm and personal needs for credit.
The ideas set forth by Mr. Batten and Dr. Anson on
management responsibilities and developing the “produc
tivity climate” may prove helpful to bank executives con
cerned with improving their individual bank programs.
Many successful banks are developing long-term working
relationships with consultants who are staffed and organ
ized to provide a continuing source of innovations and
internal controls.— End.

Boatmen’ s Announce Increase

RA 6-5432

Dl 4-3686

Since 1903, Specialists in maintaining bank earnings
through commercial paper, collateral loans,
and other short-term institutional investments.
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Harry F. Harrington, chairman and
president of The Boatmen’s National
Bank of St. Louis, announced that
the board of directors authorized a 5
per cent common stock dividend. The
stock dividend will be submitted to
shareholders for aproval at their an
nual meeting on January 26, 1965. It
is also subject to the approval of the
Comptroller of the Currency.
In another action, the Boatmen’s
board authorized an increase in the
bank’s surplus to $12 ,000,000 by a
transfer of $2,000,000 from undivided
profits to surplus.

DESTINATION: 3 swallows and an olive away
A m artini is sym bolic. I t represents good
things . . . like business lunches, m eeting
friends, special celebrations . . . and Ozark
A ir L in es’ cocktail flights.
Serving cocktails in flight is ju st a new sign
o f the growing th a t’s been going on at Ozark.
W e ’ ve also added new service (now serving
58 im p ortan t M id -A m e ric a cities) . . . new
je t-p ro p aircraft . . . continental breakfasts
and snacks . . . and w e’ ve introduced the new
R e a d y - R e f t im e t a b le . N o t to m e n tio n
O z a r k ’ s n ew h a n g a r a n d h e a d q u a r te r s
facilities in S t. Louis.

G ettin g you there on tim e, and giving you
the best service under the sun are o f prime
im p o r ta n c e a t O z a r k . . . a lw a y s g e ttin g
better and better! I f y o u ’re a real go-getter,
take your next M id w est trip aboard Ozark
. . . the airline th a t’s on the m ove . . . run by
and for go-getters!

go-getters
go OZARK
A

;

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A n n ou n ce AMU D ehnte T hem e
ANKING’S External Competition” 27 and April 17, 1965, with “ Competi
will be the general theme of the tion in the Lending Field” as the
1964-65 public speaking program of thespecific subject. Winners in the 12
districts will then compete in New Or
American Institute of Banking.
Chapter contests held throughout leans, speaking on “Meeting the ChalFebruary will be the first step in se lege of Banking’s External Competi
lecting contestants for the Institute’s tion.”
39th Annual National Public Speaking
Contest for the A. P. Giannini Educa Arizona Stock Split
tional Endowment prizes on Monday,
The Valley National Bank directors
May 31, 1965, at the A.I.B.’s 63rd An in Phoenix have recommended that
nual Convention in New Orleans.
the stockholders approve a two-for-one
The specific subtopic for the chap split of the common stock and a re
ter contests will be “ Competition in duction in par value from $5 to $2.50
the Savings Field.” Next will come a share. They also recommended a
contests in 12 geographical districts subsequent 10 per cent stock dividend.
of the country, held between March This will be the eighth consecutive

There’s talk among
bankers

year in which a stock dividend has
been paid.
The split and change in par value
and stock dividend are subject to ap
proval by stockholders at the annual
meeting, February 17, and the Federal
Comptroller of the Currency.
The effect of this action will be to
increase the number of shares of com
mon stock from 2,744,529 to 6,037,964
shares.
Total capital funds, comprising con
vertible debentures, common capital,
surplus and undivided profits, will re
main the same, amounting to more
than $76 million. There will be, how
ever, some adjustments in the mix of
these capital funds—$1,372,000 will be
added to common capital out of undi
vided profits.
As a result of this action, the price
at which the convertible debentures
may be exchanged for common stock
will be reduced from $85 per share
to $38.64.

Heads Installment
Department

action

Charles A. Elfrank, assistant vice
president of Mercantile Trust Com
pany, St. Louis, has been named head
of the bank’s installment loan depart
ment. He succeeds Wayne Fosher.

They talk about the advantages of handling all their West Coast business
through one account with one bank. For example, the convenience of
routing all West Coast items to any of our offices for credit to one account.

THE BANK OF CALIFORNIA
THE BANK OF CALIFORNIA, NATIONAL ASSOCIATION

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PORTLAND
TACOMA
LOS ANGELES
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L O O K IN G FOR A

American Express Promotions
John E. White, assistant vice presi
dent, American Express Company, was
elected comptroller at a meeting of the
company’s board. In assuming re
sponsibility for the comptroller’s office,
Mr. White will work under the direc
tion of Vice President George T. Pfifer,
who has been serving as acting comp
troller.
American Express President How
ard L. Clark also announced that Vice
President-Administration H. B. Miller
was elected to the additional duties of
secretary and Assistant Vice President
E. W. Hurner was elected to the addi
tional duties of assistant secretary.

Joins Chemical Bank

CORRESPONDENT

F. B. St. John, Jr., has joined the
oil and gas department of Chemical
Bank New York Trust Company with
the title of geologist-engineer. He for
merly served as an area geologist with
Humble Oil & Refining Company in
Jackson, Miss.

B A N K IN T H E
M ID -C O N T IN E N T
AR EA ?

New FDIC Position

Think . . .
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AND TRUST COMPANY
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Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

C hairm an J o sep h W. Barr an
nounces that the board of directors of
the Federal Deposit Insurance Corpo
ration has appointed Ernest L. Cox,
Jr., as deputy chief of the division of
liquidation. A. E. Anderson continues
as chief of that division. The position
is a new one.

You probably think that
Christmas Clubbers spend
hundreds of millions of dollars
on Christmas.

But only 30% of their total Christmas Club savings is used
for Christmas spending. 980,000 Christmas Clubbers use part
of their checks to pay insurance premiums and 3,640,000
deposit a part in their savings accounts. 2,380,000 pay their
taxes with some of the money and 420,000 use their Christmas
Club checks for educational expenses. And so on.
The desire for money at Christmas is the force that started

They do ! But. . .

all these things. With Christmas Club you help people do the
things they want to do. Then, most often, they bring you their
other banking business, too.
If you don’t have a Christmas Club, let us show you how easy
and inexpensive it is. If you do, let the Christmas Club man help
make it more effective. Just contact the originators. Christmas
Club a Corporation, 230 Park Avenue, New York 10017.

Christmas Club
a Corporation

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1964

v
Doug Johnson and John Ordos, with new teammate Jack Weber, score on lofty problem.

We’ve built up our team by adding a new
correspondent banker to the Midland staff: Jack W eber. H e’ll be
working with teammates John Ordos and D oug Johnson to give
you even better service. T h e Midland National Bank would like to
serve you. Call on Jack W eber and the Midland team soon. You’ll
discover they prove Midland’s friendship with special service.
T H E B AN K W IT H T H E BIG W E LC O M E

Midland National Bank
FEderal 2 -0 5 1 1

• 4 0 1 Second A ve. So. • M in n e ap o lis, M in n . 5 5 4 4 0
M e m b e r Federal D eposit Insu ra nc e Corporation

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

49
Miss Laura Lund, assistant cashier,
retired November 30. Miss Lund, who
first worked for the former First &
Peoples State Bank, had spent 44 years
in the banking business.

M innesota

NEWS
G. A . UGGEN
K. A . WALES

President
Secretary

S ta te L a w

Russell Hanson Re-elected

Wells
Minneapolis

iim 'erasTime K a tes

ESPITE the fact that the Federal Minnesota’s bankers will continue to
Reserve Board recently lifted the work for greater understading and
ceiling on rates which member com
cooperation between the farm and
mercial banks can pay on savings and financial communities.
time deposits, Minnesota hankers who
Chairman of the Agricultural Com
wish to raise interest rates will be mittee during the award year was A.
obliged to wait at least until the 1965 H. Stellner, president of the State
session of the Minnesota legislature.
Bank of Cyrus. Vice chairman was A.
John Chisholm, Minnesota’s banking H. Haakenson, president of the Austin
commissioner, noted recently that the State Bank, who is chairman of the
federal action will have no effect in committee for 1964-1965.
Minnesota. State law fixes the maxi
mum interest rate which can be paid
\ ice President Retires
on savings at four per cent. The law
WTlliam D. Klapp, president of The
applies to national and state-chartered First National Bank of Stillwater, re
banks alike.
cently announced the retirement of
A change in the ceiling would re Oscar Olsen after 57 years of service
quire a change in the state law which to the bank.
governs such interest rates.
Mr. Olsen, who began his banking
Country bankers are expected to op career in 1907 as a messenger and
pose any move to alter the existing bookkeeper, was elected a vice presi
legal limit. Some of the smaller banks dent in January, 1964.
did not increase the interest rate they
pay on savings when the Federal Re Open House Held
serve Board amended Regulation Q,
The Randall State Bank recently
which regulates such rates, in Janu held an open house at its new location.
ary, 1963.
City banks in Minnesota are cur Authorize Amendment
rently paying three per cent on pass
The State of Minnesota Department
book savings which can be withdrawn
of Commerce, banking division, has
at any time. The annual rate on cer authorized an amendment increasing
tificates of deposit is four per cent.
the amount of capital stock from $90,Some country banks in Minnesota
000 to $135,000, by stock dividend, in
are paying the same rates as the city the First State Bank of New Brighton.
banks but others are paying as little as
two per cent on passbook savings.
Remodeling Completed
Celebrating the completion of an ex
Ag Award to Bankers
tensive remodeling project, Union
The National Agricultural Award
State Bank of Thief River Falls re
for outstanding service to agriculture cently held an open house which drew
in 1963-1964 has been presented to the
approximately 3,000 visitors.
more than 700 banks in Minnesota, ac
cording to a recent announcement
made by the American Bankers Asso
Ad Program Starts
ciation in New York.
The BANKERS AREA-WIDE
The ABA-sponsored award to Min
A D V E R T IS IN G
PROGRAM,
nesota banks marks the 25th year that
sponsored by the Minnesota
the Minnesota Bankers Association
Bankers Association and sup
and its members have received such
ported by voluntary contribu
recognition for services to agriculture.
tions on the part of its member
Glenn A. Uggen, president of the
banks, got underway officially on
Minnesota Bankers and president of
December 1. Programming was
the Peoples State Bank, Wells, con
to begin in Minnesota and parts
gratulated the members of the MBA
of three other states by mid-De
Agricultural Committee and all Minne
cember.
sota bankers on achieving the national
honor and said he is confident that

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Russell Hanson, vice president of
the Swift County Bank of Benson, has
been re-elected to the executive coun
cil of the Independent Bankers Asso
ciation, a group of 6,400 banks in 39
states. He was elected from a field of
23 candidates, nominated by Independ
ent Bankers of Minnesota. In his
three-year term, which commences
January 1, 1965, Mr. Hanson will rep
resent 556 member banks of Minnesota
on the executive council.

Construction Begun
Peoples State Bank of Madison Lake
has begun construction of a new brick
bank building. The building, measur
ing 38 by 44 feet, is expected to be
completed and occupied by May 1,
1965. The one-story, contemporary
structure was designed by Allan Ross
Associates, Architects, Mankato.

Traul» Named Cashier
Jack Moors, president of Northwest
ern State Bank of Northfield, has an
nounced that Burton Traub has joined
the staff of the bank as cashier.
Mr. Traub, a native of Garrison, N.
D., is a graduate of Minot State Col
lege, Minot, N. D., and was employed
by the First National Bank in Minot
for three years. He worked, for the
past two years, in the controller de
partment for Northwest Bancorporation.
The board of directors of the bank
also elected Wilmer Brosz assistant
vice president, effective last month.

Staff Completed
The Harmony State Bank is fully
staffed for the first time since the
death of Charles Dahling in July.
Emmett R. Hedeen, former Granger
banker, recently began work as assist
ant vice president of the bank. Norris
A. Hanson is president, Carl V. Lind,
executive vice president, Everett J.
Anderson, vice president and cashier,
and Gertrude Hoiness, assistant cash
ier.

Banker Reappointed
Clifford C. Somer, president of Se
curity Bank and Trust Company, Owatonna, was renamed regional vice
president of the American Bankers
Association recently. He will coordi
nate activities of the association’s vice
presidents in Minnesota, North Da
kota, South Dakota, Montana and
Wyoming.
Northwestern Banker, December, 1964

MAY THE MIRACLE OF.CHRIST'S BIRTH BE A HOLY INSPIRATION
TO ALL OF US THIS CHRISTMAS AND THROUGH THE NEW YEAR

FIRST NATIONAL BANK OF SAINT PAUL
DIVISION V—BANKS AND BANKERS Wallace L. Boss, Donald W. Buckman, David A. Shern, Vice Presidents □ Roger Cunningham,
James T. Gowan, Laurence R. Kennedy, Henry N. Snyder, Richard C. Swanberg, Assistant Cashiers □ John F. Mullen, John D. Turner,
John M. Wooldridge III, Bond Advisory Specialists □ Robert F. Donlan, Thomas T. Dwight, Roland W. Hohman, Trust Advisory Specialists

Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

HE new Park National Bank in western. He had been president since
the Minneapolis suburb of St. 1959. He will continue to serve as a
Louis Park was robbed recently bydirector for the institution.
two men who escaped with an esti
William A. Stein was also advanced
mated $55,000 to $60,000.
from assistant cashier to assistant vice
A p ic t u r e o f t h e n e w b a n k a p p e a r e d
president. He first joined Northwest
in la s t m o n t h ’ s N o r t h w e s t e r n B a n k e r .
ern National as a messenger in 1936
Richard G. Held, special agent in and has been with the Fourth North
charge of the Minneapolis FBI who western for 12 years.
estimated the loss, said that the band
its had forced Andrew Darling, bank
Joseph R. Kingman III, who was re
president, and Donald Cromwell, head
cently named to head the commercial
teller, to open the ceiling-high vault
banking division serving grain, mill
on the first floor of the building. They
ing and food processing fields for First
, reportedly stuffed the currency into a
National Bank of Minneapolis, has
J brown briefcase and fled.
been elected a vice president of the
* * *
bank.
Erwin A. Olson, an executive vice
Mr. Kingman has been with First
president of Archer Daniels Midland
Company, Minneapolis, and a member National since 1950 except for a period
of the company’s executive commit in 1962-1963 during which he was an
tee, has been elected a director of the officer of Imperial Financial Services.
* * *
National City Bank of Minneapolis.
James
H.
Leslie,
vice president and
,
* * *
treasurer
of
Leslie
Paper Company,
William H. Sweney, Jr., a director
of Stock Yards National Bank of South has been named a member of the ad
St. Paul, died recently of cancer fol visory board of the Lincoln office of
lowing two months’ hospitalization. the bank, according to Mr. Moorhead.
* * *
He was president of W. H. Sweney &
Myron D. Richards, founder and
Company, St. Paul, paint manufactur
president of Richards Oil Company,
ing firm.
* * *
has been elected a director of Bank of
A
Wendell L. Olson has been elected Minneapolis and Trust Company, ac
president of Fourth Northwestern Na cording to Thomas K. Scallen, bank
tional Bank, Minneapolis, according president. Mr. Richards at one time
to a recent announcement. He suc was a bank clerk with the Federal
ceeds Frederick O. Glasoe, who retired Reserve Bank of Minneapolis.
* =i= *
December 1 fol
The charter for the Bank of Minne
lowing 45 years
apolis and Trust Company was issued
with the bank.
Mr. O l s o n ’ s November 3 by the State of Minnesota
banking career be Department of Commerce, banking di
gan in 1948 when vision, with capital set at $500,000,
he joined North surplus at $500,000 and undivided prof
western National its at $200,000. Officers, in addition to
Bank. He moved Mr. Scallen, are Robert R. Willette,
to Fourth North executive vice president; John Y. Wal
western in 1952 lace, cashier, and Jerome T. Lodahl,
and has been a assistant cashier and assistant trust
vice president and officer.
* * *
j
director of the bank for five years.
Harry L. Holtz, president of the
Mr. Glasoe started as a messenger
in 1919 with the South Side State Bank First Trust Company of St. Paul, has
which later became the Fourth North- been elected president of the Corpo

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Federal Reserve Bank of St. Louis

rate Fiduciaries Association of Minne
sota. The organization consists of 21
trust companies and banks having
trust powers and engaging in fiduciary
transactions. Other newly-elected offi
cers for 1964-1965 are John R. Mont
gomery, vice president and trust offi
cer, Midland National Bank of Minne
apolis, vice president; Kenneth R.
Johnson, vice president, First National
Bank of Minneapolis, vice president;
William W. Helms, vice president and
trust officer, American National Bank
of St. Paul, vice president, and Robert
M. Ferris, vice president, First Na
tional Bank of Minneapolis, secretarytreasurer.
Also appointed to the executive com
mittee were Myron C. Carlson, vice
president, N o rth w e ste rn National
Bank of Minneapolis; Donald X. Par
ent, vice president and trust officer,
St. Cloud National Bank; Joseph B.
Rechtiene, assistant vice president,
First Trust Company of St. Paul, and
Robert M. Moore, assistant vice presi
dent, Northwestern National Bank of
Minneapolis.
* * *
Emmett J. Erickson, retired treasur
er of the Farmers & Mechanics Sav
ings Bank of Minneapolis, died Friday,
November 20, of a heart attack at his
home in Deephaven, a Minneapolis
suburb.
* * *
Fairview Hospital of Minneapolis,
the second largest hospital in Minne
sota, is issuing $2,750,000 of Series B
First Mortgage Serial Bonds through
B. C. Ziegler and Company, underwrit
ers of hospital bond issues. The “AA”
rated bonds were publicly offered last
month and carry interest coupons
from 4% to 544 per cent.
Proceeds from the sale of the bonds
will be used to help defray construc
tion costs of the new 225-bed FairviewSouthdale Hospital, a “satellite” hos
pital under construction in suburban
Edina, and partial construction costs
of the new recently-completed 150-bed
convalescent and long-term care addiNorthwestern Banker, December, 1964

Minnesota

News

tion at the main hospital. Mortgaged
property valuation will total $14,913,068.
* * *
Mrs. Violet M. Shanley has been
elected an assistant cashier of the
Midland National Bank of St. Paul,
according to William R. Chapman,
bank president, who also announced
the reassignments
of four other of
ficers.
James A. Gal
braith, vice presi

V. M . S H A N L E Y

J. A. G A L B R A IT H

L. D. H E R B S T

dent and manager
of the installment
banking depart
ment, will move
to the business
developm ent de
partm en t. Regi
nald F. Kroskin,

R. F. K R O SK IN

The fourth annual A g r ic u ltu r a l
Credit Conference of the Minnesota
Bankers Association recently brought
hundreds of banker delegates from all
parts of the state to a full-day program
at the Leamington Hotel in Minneap
olis.
^ ^ >)i
The Marquette National Bank in
Minneapolis has installed a Mosler
Tapeguard unit as a part of its com
puterized bookkeeping operation, ac
cording to Gary B. Wollan, vice presi
dent, EDP operations. Data process
ing is handled by an IBM 1401 com
puter system with four 7330 magnetic
tape drives and one 1419 magnetic
character sorter reader.
* * *
First Bank Stock Corporation has
announced the election of Donald W.
May of Chicago as secretary and cor
porate counsel. Mr. May succeeds
Lawrence B. Hogue, vice president
and secretary, who will continue as
vice president of the Minneapolis cor
poration until his retirement January
31, 1965. Mr. Hogue has been asso
ciated with the corporation since its
founding in 1929.
* * *
Lawrence R. Peterson, president of
the Camden Northwestern State Bank,
Minneapolis, has announced the pro
motion of two of the bank’s officers.
Donald D. Conner, with the bank since
1955, has been elected vice president.
Donald F. Giles, with the bank since
1959, has been elected assistant vice
president.
Mr. Conner is in charge of the
bank’s mortgage department.

S. M Y K L E B U S T

assistant vice president, will assume
responsibilities as manager of the in
stallment banking department. For en
D. Herbst, assistant cashier, will be
come assistant manager of the install
ment banking department. Sigurd
Myklebust, assistant cashier, will move
to the business development depart
ment.

D. F. G ILES

D. D. C O N N ER

Bankers are Select Risks and we have special coverage
designed for Bank Men and W om en.

Write for Application

and Information.

M innesota Commercial Men’s Association
Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

Set Banking Class
Eight Duluth banking officials are
currently conducting a series of spe
cial classes for area high school stu
dents. The classes will span a sixweek period.
The informational program, aimed
at acquainting high school seniors
with the various facets of bank oper
ation, will consist of one-hour classes
each week through December 17. The
courses are sponsored by the Duluth
chapter, American Institute of Bank
ing.

/
V

Building Planned
A remodeling and enlarging pro
gram is contemplated by the Peoples
State Bank of Mazappa. A building y
adjoining the bank has been purchased
and plans have been drawn but, at last
report, no contracts had yet been let.

Celebrate 5 0 Years

Approximately 3,000 persons toured
the facilities of the Cambridge State
Bank at its recent open house in its
expanded and completely-remodeled ^
quarters. The celebration marked 50
years of banking service in the area,
according to Elmer Erickson, presi
dent, who started operations in Dalbo
in October, 1914.
v
Recognition was also accorded Paul
Dahlgren, who has served the bank
for a period of 30 years following 20
years of previous banking experience. Á

Solarz Joins Bank

ACCIDENT, SICKNESS and HOSPITAL
INSURANCE AT COST!

2550 Pillsbury A ve. S.

The Camden Northwestern State
Bank, the Central Northwestern Na
tional Bank and Third Northwestern
National Bank, all of Minneapolis,
were honored recently by the U. S.
Treasury Department for over quota
sales of U. S. Savings Bonds for the
year 1963. The citations were signed
by Douglas Dillon, secretary of the
treasury, and Rollin O. Bishop, Minne
sota state volunteer chairman.

Minneapolis 4, Minnesota

Lawrence Solarz recently joined the
staff of the Cosmopolitan State Bank
of Stillwater after having served for
several years as assistant vice presi
dent of Citizens State Bank of St.
Louis Park.
Originally from Pillager, Minn., he
was graduated from the Academy of
Accountancy in 1950 and, shortly
thereafter, joined the First National
Bank of Minneapolis where he remained until 1955.

Resigns Bank Post
Arthur Flikki, assistant cashier of
the First National Bank of Le Roy and
a native of that community, has re
signed to accept a position as loan
specialist with the Federal Housing

{

Minnesota News
Administration, Des Moines, Iowa. He
had been employed by the bank since
1952.

Named New Officer
David Noack, 30, a native of Arling
ton, has been named an assistant cash
ier of the Northwestern Bank and
Trust Company, St. Cloud, according
to Jerry Kigin, bank president.

cording to Robert S. Branham, bank
president. Mr. Wiebke will become
the manager of the new drive-in facil
ity which is to be completed and
opened prior to the first of the year.
An employee of the bank since 1957,
Mr. Wiebke has worked in various de
partments, most recently in the area
of installment loans.

Four Changes
Assistant Cashier
Willard J. Blumhardt, 27, has joined
the staff of Northwestern National
Bank of Rochester as assistant cash
ier, according to Robert S. Branham,
bank president.
A 1963 graduate of the University of
North Dakota, Mr. Blumhardt was em
ployed by the First National Bank in
Grand Forks from 1957 until his grad
uation at which time he joined North
west Bancorporation in Minneapolis
as a credit analyst.

Freeman Advanced
The promotion of James Freeman to
cashier of the First National Bank of
Red Wing was announced recently by
William Solberg, bank president.
Mr. Freeman joined the staff of the
bank March 5, 1956, and was appointed
assistant cashier January 1, 1962.

Moe Joins Bank
Harvie O. Moe, who has worked for
the past nine years as an insurance
company field representative, recently
joined the staff of the First State Bank
Insurance Agency, Litchfield. He suc
ceeds Reuben Tangren on the First
State Bank staff.

Elected Director
M. J. Ness, vice president of Eian &
Ness, Inc., general contractors, has
been elected to the board of directors
of the Security State Bank of Fergus
Falls. He succeeds his late father,
H. B. Ness.

Recent changes in assignments and
officers at the First National Bank of
Ely have been announced by Presi
dent George T. Tomero.
Joseph G. Kastelic, former assistant
cashier, has been named cashier. Mary
L. Mistek and Jennie Koshak, for
merly assistant cashiers, are now as
sistant vice presidents. Rose Rom,
who was receptionist and secretary, is
now assistant cashier.

Robert B. Burns
Robert B. Burns, 46, president of the
First State Bank of Grand Meadow,
died recently of injuries suffered when
the scooter he was riding, at the
family’s vacation home near Nisswa,
collided with an automobile.

Irving H. Overman
Irving H. Overman, 75, a retired
Minneapolis investment banker, died
November 9 at his summer home in
Stillwater.
Mr. Overman was founder and pres
ident of 1. H. Overman, Incorporated,
in Minneapolis. He founded his busi
ness in 1932 and operated it until his
retirement in 1960 at which time the
firm was dissolved. He had been em
ployed by the First Minneapolis Trust
Company from 1910 until 1932 at

Elected Officer
Benjamin Wiebke has been elected
an assistant cashier of the Northwest
ern National Bank of Rochester, ac

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Federal Reserve Bank of St. Louis

which time he resigned as first vice
president.

50-Year Open House
Approximately 900 persons visited
the Farmers State Bank of Adams at
its 50th Anniversary open house held
November 14. The occasion not only
marked 50 continuous years of bank
ing in the community, but also was
the 50th year for N. V. Torgerson
as a banker and as an active officer
and director of the Farmers State
Bank.

New Bank Opens
Nearly 4,500 persons were guests of
the Citizens National Bank of Willmar
recently when the bank held open
house in its newly-completed building.
Willmar’s Mary Sue Anderson, reign
ing Minneapolis Queen of the Lakes,
welcomed visitors to the new bank.
As part of the open house, more than
600 turkeys were given away to per
sons who either opened an account
with $100 or more or added $50 or
more to an existing account.

M. N. Johnson
M. N. Johnson, 72, vice president
and director of the Farmers State
Bank of Sherburn, died recently at the
Trimont hospital there. He was a
long-time businessman and former
state representative from Martin
county.

Accepts New Position
Harold DeBolt, assistant cashier of
the Merchants State Bank of North
Branch, has resigned to accept a new
position at the Roseville State Bank,
Roseville, according to William Holt,

GET N E W CHECKING ACCOUNTS
WITH FREE SECURITY
HALLMARK PROMOTION

Auditor Joins Bank
Edward A. Gott, St. Paul, has joined
the staff of the Winona National &
Savings Bank. He will have complete
charge of the bank’s internal audit
system and the related control and op
erations activities.
After serving in the Army from 1946
to 1948, Mr. Gott joined the staff of the
American National Bank in St. Paul
where he has been employed for the
past 16 years, the last 12 of which
were spent in the auditing department.

□ Please Send Me
S e c u r ity H a llm a r k
P r o m o tio n a l K i t

Yours for th asking—a complete packaged
promotion that gives prospective customers
new reasons for opening an account at your
bank. It projects a Security Image to present
customers at the same time—one that auto
matically repeats itself every time a cus
tomer receives his cancelled checks.
The Cummins Security Hallmark promo
tion includes a handsome plaque to display
in your lobby that explains your use of per
forated cancellations for depositor protec
tion; a variety of advertising mats for use in
local papers that tell these new reasons for
banking with you; radio and television com
mercials; publicity releases; envelope stuffers and other useful material. It's all yours
for the asking. Just check the box and
return this ad to:

C U M M IN S -C H IC A G O
C OR POR ATION
4740 N RAVENSWOOD AVE. • C H IC AG O 40. ILL.
SALES A ND SERVICE I N ALL PRI NCI PAL CITIES

Northwestern Banker, December. 1964

Minnesota

News

Jr., president of the Merchants State
Bank. The change will become effec
tive January 1, 1965. Mr. DeBolt has
been associated with the Merchants
State Bank since 1954 as head of the
insurance department of the institu
tion.

W olfe to Duluth
Donald G. Wolfe, Washington, D. C.,
has joined the staff of the Northwest
ern Bank of Commerce, Duluth, as
supervisor of the loan department, ac
cording to Fred C. Lewis, bank presi
dent.

Assistant Cashiers
The board of directors of the Kana
bec State Bank announces the election
of Milan DeWitt and Jack Nieboer as
assistant cashiers of the bank.

100th Birthday Party
Thousands of persons visited the
First National Bank of Rochester dur
ing its recent, week-long 100th birth
day party celebration. Barbara Hasselberg, Miss Minnesota, was a special
hostess for the event which featured
a mural depicting the original bank
as it appeared 100 years ago.
Minnesota Twins ball players Earl
Battey, Jim Kaat and Camilo Pascual

were also on hand on “Twins Day.”
Robert A. Bezoier is president of the
bank.

Elected Vice President
Kenneth C. Hunerberg has been
elected vice president of the American
State Bank of Watertown, according to
A. R. Wasser, bank president. Mr.
Hunerberg assumed his new duties
last month.
Since 1955, Mr. Hunerberg has been
State Sales Manager with the Moor
man Manufacturing Company, Quincy,
111., for eastern Minnesota and western
Wisconsin.

Bank of Grand Forks. He had been
assistant cashier of the Vermillion
bank since March, 1961. Prior to that
time, he was an examiner for the First
Bankstock Corporation of which the
National Bank of South Dakota and
the First National Bank of East Grand
Forks are affiliates.

Sou Succeeds Father
H. B. Ness, a director of the Security
State Bank, Fergus Falls, died re
cently. He was succeeded as a direc
tor by his son, M. J. Ness, vice president of Eian & Ness, Incorporated,
general contractors.

Recent Open House
Marks 90th Year
The Goodhue County National Bank,
Red Wing, recently observed its 90th
anniversary with an open house. The
bank would normally have observed its
anniversary September 30, but the cel
ebration was delayed in order to await
completion of a remodeling and re
decorating program.

New Cashier
Deverne Danburg, assistant cashier
of the National Bank of South Dakota,
Vermillion, recently accepted appoint
ment as cashier of the First National

Open house was held at Citizens Na
tional Bank, Madelia, Saturday, De
cember 5, following completion of an
extensive building and remodeling
program.

Named Bank Cashier
At a recent meeting of the board of
directors of the State Bank of Wood
Lake, Herman C. Bahn was named
cashier of the bank. He had been
assistant cashier. He replaces the late
Loyd Schroeder as the bank’s cashier.
Mr. Bahn has been employed by the Y
institution for the past two years.

c cíóon J

LIVE STOCK

NATIONAL BANK

ED NEWELL
A.V.P.

SIOUX CITY

JIM McGILL
A.V.P.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

MALCOLM
ERICKSON
A.C. & Aud.

BEN HOLTDORF
A.C.
N o rth w e s te rn

B anker,

D ecem ber,

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Federal Reserve Bank of St. Louis

7964

CLIFF DAHL
A.C.

G. MULLINS
A.C.

R. M. McGREGOR
A.C.

55
where he had stopped to visit. He
was dead on arrival at St. Luke’s Hos
pital there.

Soulli Dakota

NEWS
H . E. IVERSON
A . S. GULLICKSON

President
Secretary

Accepts Minnesota Post

Canton
Huron

State ABA Official
Reno Odlin, president of the Ameri
can Bankers Association, has an
nounced the appointment of C. C.
Lind, president of the First National
Bank of Aberdeen, to serve as the
state ABA vice president for 19641965.

Joint Meeting
The South Dakota Bankers Associa
tion legislative committee and the ex
ecutive council held a joint meeting in
Pierre, Thursday, December 3.

Begin Bank Building
Construction commenced recently
on the new Northwestern National
Bank building to be erected in Madi
son, according to Wallace Hanson, vice
president and general manager of the
bank. Costs are expected to exceed
$200,000 for the building and $100,000
for the land and fixtures. Officials
hope to occupy the new building by
next fall.

1931, and president of the First Na
tional Bank Trust Company, Lake
Norden, since 1933, died recently in a
Minneapolis rest home. He had been
in declining health for an extensive
period of time.

Personnel Changes
Personnel changes, precipitated by
the untimely death of Max Gutz, ex
ecutive vice president, have been an
nounced at the First National Bank
of Selby.
Ted Schanzenbach has been named
cashier and managing officer. He has
been associated with the bank for 17
years. Marvin Lutz has been named
assistant cashier. Murlyn Bickel, a
newcomer to the bank, will be in the
loan and insurance department.

Further Plans

An open house, marking the 60th
anniversary of the First State Bank
of Pierpont, was held recently. In ad
dition to marking the 60th anniversary
of the bank’s existence, the occasion
also called attention to the first anni
versary of the bank’s new building.

Further plans for the new Farmers
and Merchants Bank of Watertown
were recently announced by V. D.
Basart, chairman of the board and
president of the bank.
Dimensions of the new building, ex
pected to be completed by August 1,
1965, are 59 by 76 feet. Additional
area will be required for the vault at
the north end of the building and for
drive-in banking facilities on the west.
Parking area for 40 automobiles will
also be provided.

New Bank Manager

Under Construction

60tli Anniversary

Robert Phillips has been elected vice
president and manager of the Britton
Branch of the First National Bank of
Aberdeen, succeeding Dan Beck who
resigned in October to accept a posi
tion as president of the Citizen’s First
National Bank at Wahpeton, N. D.,
effective December 1.

Dr. L. S. Spencer
Dr. Lyle S. Spencer, 77, prominent
Watertown dentist, a director of the
First Citizens National Bank since

The new Citizens Bank of Vermil
lion is rapidly taking shape. The drive
and parking area were recently sur
faced, the foundation was completed
and workmen began laying the brick
walls.

SOUTH

M. J. (Mike) Twiss, 77, Doland bank
er, died recently in Aberdeen. Mr.
Twiss suffered a heart attack in the
office of C. C. Lind, president of the
First National Bank of Aberdeen,

DAKOTA

Member of Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

Resigns Position
Don Cotton, associated with the
First National Bank of Miller for the
past 11 years, resigned recently to
enter the auto sales business. He was
an assistant vice president and man
ager of the time-pay department of
the bank. He purchased half interest
in Coss Auto Sales, St. Lawrence.

Appoint Vice President
Marvin H. Brown has been elected
vice president of the Corsica branch
of the National Bank of South Dakota.
Announcement of the election was
made by Martin Colton, president of
the bank, which has its headquarters
in Sioux Falls. Mr. Brown was for
merly assistant cashier at the Platte
branch of the National Bank of South
Dakota.

Bank Converted
C.
O. Peterson, cashier, Bank of
Lemmon, announced recently that the
Bison branch office of the Bank of
Lemmon has been converted to the
Bison Branch Bank of Lemmon.

Hold Open House
The First National Bank of Sioux
Falls held open house Saturday, No
vember 28, following completion of an
elaborate remodeling and building
program. The remodeling and mod
ernization project included the addi
tion of drive-in banking facilities.

Tenth Anniversary
M. J. Twiss

The National Bank
OF

Ray Swanson, assistant cashier of
the Miners and Merchants Bank of
Lead, recently resigned to accept man
agerial responsibility for the State
Bank of B ellin g h a m , Bellingham,
Minn.
Mr. Swanson had been employed by
the Lead bank since 1962. He had
formerly been employed in Rapid City
by the Beneficial Finance Company.

CORSICA
HURON
PLATTE
PRESHO
VERMILLION

Open house, featuring display of a
new NCR 450 proof machine, was held
Friday, December 11, at the Farmers
State Bank of Parkston, marking the
bank’s tenth anniversary in the com
munity.
WESSINGTON SPRINGS
SIOUX FALLS
Phillips at 9th
S. Minnesota at 33rd
E. 10th at Omaha

Affiliated with F IR ST B A N K STO CK CORPORATION
Northwestern Banker, December, 1964

South

Dakota

News

tising at the time of his October, 1952,
retirement.
He served as president of the Finan
cial Public Relations Association in
1942 and was an honorary life member
of that organization.

On American Board
Clyde J. Fitzpatrick, president, Chi
cago and North Western Railway
Company, has been elected to the
board of directors of the American
N a tion a l B ank
and Trust Com
pany, Chicago.
Mr. Fitzpatrick
became president
o f the C h ica go
and Northwestern
in 1956, and in ad
dition to this po
sition , currently
serves as a direc
tor of the Illinois
C. J. F IT Z P A T R IC K
T e rm in a l R a il
road, Lake Superior Terminal and
Transfer Railway, Minneapolis East
ern Railway, Minnesota Transfer Rail
way, Packers Car Line Company, Pe
oria and Pekin Union Railway, and
the St. Paul Union Depot Company.

ESTATE PLANNING . . .
(Continued from page 35)
to work with the customer’s attorney,
life insurance advisor and accountant.
He also recognizes the need for trained
trust personnel on his own staff and
for reliance upon adequate bank legal
counsel.
In addition, he recognizes that there
are some types of estates and trusts
which, by the nature of the assets in
volved, the planned duration or other
special problems just do not fit into
his country bank. Business that clear
ly is beyond the abilities of the coun
try bank should be referred to a larger
or specialized fiduciary rather than
assume the responsibility and the po
tential liability. The loss of income
from such procedure may be nothing
compared with the potential losses
from surcharges resulting from mis
management.
Finally, the country banker can
make a real contribution to his cus
tomer and the family by helping to see
that the estate plan and the adminis
tration represent a balance of legal
theory and practicality. In some in
stances planners whose thinking is
primarily concerned with eventual tax
savings or successive probate savings
through the use of trust devices lose

Louis E. Townsend
Louis E. Townsend, retired Bank of
America vice president and dean of
financial advertising in the Bay Area,
died November 9 in a Fremont, Calif.,
hospital. He was 77.
Prominent throughout the advertis
ing world, Mr. Townsend was a pio
neer in bank advertising at a time
when most banks steered clear of
seeking customers through the com
munications media.
He was named assistant manager of
the bank’s advertising department in
late 1932 and subsequently advanced
to assistant vice president. He was
vice president and director of adver-

Yes Sir,

CALL

or W R ITE

JOHN KRASTINS, Cashier

BANK

f o r help
with your
TRANSIT
and
COLLECTION
ITEMS!

$0
N

o r t h w
^

e s t e r n

N A T IO N A L .

B A N ÏC

Sioux Falls, South Dakota
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Assistant Cashier
The Citizens State Bank of Finley
announces that Paul D. Norgaard of w
Finley has accepted a position as as
sistant cashier effective December 1.
Mr. Norgaard, Steele County Civil De
fense Director and Steele County Jus
tice, will continue his real estate V
brokerage business and auctioneering
in his new position.

New Bank Opens

that's m y
hankI” J

[

sight of the effects of such plans on
Y-the immediate practical problems of
operating a farm or ranch. A compli
cated plan may be effective in the ulti
mate saving of assets but may result T
in real difficulties in current borrow
ing and management. I am thinking,
for example, of the indiscriminate use
of tax-saving inter vivos gifts or irre
vocable trusts.
'<
If the country banker’s contribution
to the planning and administration of
his customer’s estate is such that he:
(1) Assures sufficient liquidity to T
permit orderly operation and distribu
tion of the estate assets;
(2) Recognizes and, insofar as pos
sible, provides for the desires and
abilities of members of the family;
(3) Minimizes the burden of taxa
tion and administrative costs; and
(4) Assures fair treatment between
those members of the family who as- ' \
sume management burdens and those
who merely share in the distribution;
he has certainly recognized and uti
lized both the public relations values
and the economic values in the field
A'
of estate planning and administration
for his bank and community.
Such a country banker will not
only solidify the positive public rela- *
tions of his bank, but he will contrib
ute greatly to the welfare of his com
munity and to the ultimate profit and
welfare of his bank.—End.
^

The First National Bank of Bis
marck opened a part of its new Motor
Bank recently, making it possible for
customers to use the parking lot, walkup window and drive-in facilities. A
second drive-in window was expected
to be in operation shortly.

New Bank Officer
The Farmers & Merchants Bank of
Sheyenne has named Rudolph G.
Swenson assistant cashier. Mr. Swen
son received his B.A. degree from St.
Olaf College in 1959 and his M.A. from
the University of Minnesota in 1962.
While completing his thesis, he was
employed by the Farmers & Mer
chants Bank from September 1960
through March 1961 at which time he
began a recently-completed tour of
duty with the U. S. Navy.

-y

(

First Meeting

North Dakota

V. F. HEGEHOLZ
W . J. DANER

N E W

President

Enderlin

Secretary

Bismarck

Annual Meetings
The third annual Credit Conference,
sponsored by the North Dakota Bank
ers Association, was held December
3-5 at Grand Forks. Among the speak
ers at the meeting were Virgil Hegeholz, president of the NDBA, Art
Schultz, director of the North Dakota
Extension Service, Dan Amstutz, Car
gill & Company, Raymond Schnell,
chairman of the GNDA agricultural
committee, and Dr. George Starcher,
president of North Dakota University.
N. T. Tieman, president of the Ne
braska Bankers Association and Curtis
Mateer, e x e c u t iv e vice president,
Pierre National Bank, also addressed
those present.
The annual Bank Management
Clinic is scheduled for January 14-16
at Fargo. Chairman for the event is
Bob Harkinson, head of the bank man
agement committee.

Savings Trophies
Four Bismarck banks, in an effort to
give incentive to pupils who want to
save and impetus to those who already
do, have obtained traveling trophies
for each of the grade schools. The tro
phies are awarded each week to rooms
with the most savings stamp buyers,
considering proportionate class sizes.
The four participating banks are the
Bank of North Dakota, the First Na
tional Bank, the Dakota National Bank
and the State Bank of Burleigh
County. Each purchased an exact rep
lica of the Liberty Bell, cast in bronze
and complete with functional clapper,
to award as trophies.

of directors with the election of G. E.
Satrom and Adolph Tobiason.
Election of the two local business
men brought the board membership
from seven to nine.

Named Bank President
Daniel G. Beck, 39, vice president
and general manager of the First Na
tional Bank of Britton, S. D., has been
named president of the Citizens First
National Bank of Wahpeton. He as
sumed his new duties December 1.
Horace Lahren had been president
of the bank since February when he
assumed the position following the re
tirement of B. P. McCusker. Mr. Lah
ren died September 21.

Elected Cashier
Earl Nelson, Jr., has been elected
cashier and managing officer of The
First and Farmers Bank of Portland
replacing C. J. Carlson who accepted
a position with First State Bank at
New Rockford.
Willard D. Sorteberg, formerly with
Mayville Motor Company, has taken
over the insurance department and
Philip M. Paulson has been named as
sistant cashier at The First and Farm
ers Bank.

First meeting of the shareholders of
the newly-organized National Bank of
Harvey was held last month. Richard
Jordahl, who has been auditor for the
Bank of North Dakota, has been
named manager of the new bank. He
was associated with the Bank of North
Dakota since 1952.
Organization of the new bank, which
is expected to open January 1, 1965,
was begun several months ago by
Stanley Kwako, owner of the State
Bank at Heaton.

Joins Grafton Bank
George Bliven, 29, Grand Forks, has
joined the Walsh County Bank in
Grafton as an assistant vice president
of the firm, according to W. J. John
ston, chairman of the board of direc
tors. Mr. Bliven, a native of Sioux
Falls, S. D., has been a resident of
Grand Forks since 1941. For the past
five and one half years he has been as
sociated with the Federal Deposit In
surance Corporation.

New Vice President
Peter Nielsen, formerly trust officer
for First National Bank and Trust
Company, Fargo, became vice presi
dent and trust officer of the First Na
tional Bank in Grand Forks Decem
ber 1 .
The announcement was made re
cently by Fred R. Orth, president of
the Grand Forks bank.
Mr. Nielsen had been connected
with the First National Bank and
Trust Company since 1950, serving five
years in the installment loan depart
ment prior to joining the trust depart
ment January 1, 1955.

T r i-S ta te H a n kers M e e t

Assistant Cashier
Lyndon D. Hovland was elected an
assistant cashier of the Merchants Na
tional Bank and Trust Company of
Fargo at a recent meeting of the board
of directors. Adrian O. McLellan, pres
ident of the bank, made the announce
ment. A native of Rothsay, Minn., Mr.
Hovland has been associated with the
bank since June, 1963.

Two New Directors
Stockholders of the Valley Bank of
Grand Forks, at their annual meeting,
added two new members to the board

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Federal Reserve Bank of St. Louis

FOURTH ANNUAL Tri-State Conference of Bankers Associates was held recently
at the Grand Pacific Hotel in Bismarck, N. D. Attending were state association officials
from Minnesota, North Dakota and South Dakota. Left to right are: William J. Daner,
secy., NDBA; Don Gregerson, Anoka, v.p., MBA; A. S. Gullickson, secy.-treas., SDBA;
Kenneth Wales, secy., MBA; V. F. Hegeholz, Enderlin, pres., NDBA; Hogan Iverson,
Canton, pres., SDBA; Robert Walrath, Watertown, v.p., SDBA; Glenn Uggen, Wells,
pres., MBA; Gordon Weber, Lisbon, 1st v.p., NDBA; and A. A. Mayer, Bismarck,
2nd v.p., NDBA.
Northwestern Banker, December, 1964

Colorado-W yom ing News

H anks I p

In te H a tes

ENVER banks were recently re will be an affiliate of Denver’s Guar
ported moving with deliberation anty Bank & Trust Company.
into the area of higher interest rates
permitted by the Federal Reserve
New Bank President
Board.
Victor V. Hawkins has been named

The city’s three largest banks, at
that time, had announced they would
raise the interest rate on savings to
four per cent, effective December 1.
Twelve smaller banks in the area
joined them in announcing they will
make the rate effective regardless of
the length of time money is on de
posit.
First National said it would raise
its savings to four per cent, but made
no announcement concerning certif
icates of deposit.
First National’s three affiliates—
First National of Northglenn, Southglenn and Bear Valley—also will raise
their savings rates.
John W. Snider, vice president in
charge of the Denver branch of the
Kansas City Federal Reserve Bank,
said that the executive committee of
the bank board has the power to raise
the discount rate. The next meeting
of the board was scheduled for Decem
ber 10.
The next consequence of the raising
of the rates to banks would be in
creases in rates on loans to bank cus
tomers, but no bank had yet announced
an increase in its prime rate.
No increases were anticipated in
savings and loan association rates
which, at present, are above the new
limits permitted on bank savings.

New Stapleton Bank
Guaranty Bank of Stapleton Airfield
will open for business early in 1965
on the main floor of the airfield’s
present terminal building. The bank
will later occupy permanent quarters
in the new terminal currently under
construction. Guaranty of Stapleton
Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

president of Guaranty Bank & Trust
Company, Denver, according to a
recent announce
ment. Mr. Hawk
ins, a native res
ident of Denver,
had b e e n vice
p r e s i d e n t and
cashier of the in
stitution s i n c e
January, 1958.
Announcement
of Mr. Hawkins’
p r o m o tio n was
v. V. H A W K IN S
made by Joe Alpert, chairman of Guaranty’s board
of directors.
Mr. Alpert also announced that
Walter A. Woods, who has been presi
dent of Guaranty since the bank’s in
ception in 1955, is retiring but will
continue with the bank in an advisory
capacity. Under his presidency, the
bank has shown an average gain in
net assets of approximately $4 million
annually. The bank’s assets presently
exceed $37 million.
Mr. Hawkins’ 40 years of continuous
experience in banking began with a
job as a messenger boy for Colorado
National Bank in 1924 following his
graduation from high school. He left
Colorado National in 1952 as an assist
ant vice president. He served from
1952 through 1957 as assistant vice
president of Union National Bank. He
joined the staff of Guaranty Bank &
Trust January 1, 1958, as vice presi
dent and cashier.

Stock Dividend
Shareholders of The First National
Bank of Denver voted recently to ap
prove a stock dividend of 10,000
shares at $50 par value. The vote
came in a special meeting. Issuance

of the stock dividend awaits final approval from the U. S. Comptroller of
the Currency.
Eugene H. Adams, bank president,
said that stockholders of record on
November 18, will receive one share
for each existing 17 shares. Approxi
mately 170,000 shares were outstand
ing pending the dividend issuance.
The stock dividend would increase
the bank’s capital account from $8.5
million to $9 million. Total surplus is
$16.5 million. Undivided profits total
$6.9 million.

Assistant Trust Officer
Appointment of Christian K. John
son as an assistant trust officer of the
American National Bank has been announced by J. E. Montague, president.
Mr. Johnson was graduated from
the University of Colorado with a de
gree in accounting in 1957 and received his law degree from CU in
1961. He has been associated with
the Lamar law firm of Gordon, Gor
don & Johnson and previously was
with the Public Service Company.

Application Rejected
Denial of one national bank charter
Y
application and the filing of another
were reported recently in Denver.
The rejected application was for the
proposed Westminster National Bank.
The new application is for the pro
posed Capital Heights National Bank.
Rejection of the Westminster applica
tion marked the eighth such move in
recent weeks by James J. Saxon, U. S. A
Comptroller of the Currency, who had
previously granted 35 national bank
charters in Colorado since taking of
fice approximately two years ago.
V.
The new application was filed by
C. D. Theodoran, a Denver banker for
the past 10 years, who said that
previously-announced plans to apply
for a state charter for the new bank
had been abandoned. The proposed
Capitol Heights National would have
$649,000 in its capital funds.

Named Vice President
Virgil F. Bruns has been appointed
vice president and cashier in charge
of operations and personnel for First
National Bank, Westminster.
Mr. Bruns was previously with the
Alameda National Bank and Rocky
Mountain Bank in Denver. Prior to
that time, he was with the First National Bank and Trust Company, Lin
coln, Neb. He is a native of Nebraska.

Extra Dividend

Colorado National Bank of Denver
has declared an extra dividend of 40
cents per share in addition to the
A

N o problem is too small to receive
ou r personal attention
SEASON’S GREETINGS
from George AIff, Don Ferrcl. Kent Olin, Ray Harper,
and all the folks at the Denver U. S,

*th a t's th e b a n k f o r m y m o n e y !"

DENVER U.S.
N

□ ENVER U.S. CENTER

Denver 1 7 , Colorado
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Colorado

News

quarterly dividend of 65 cents per
share.
Directors set January 1 as payment
date and December 18 as record date
for both dividends. President Melvin
J. Roberts said that 1964 earnings
were such that the extra distribution
to shareholders was well justified.

IBA Director
Carl G. Breeze, president of the
Bank of Kremmling, has been elected
Colorado director for the Independent
Bankers Association. He will serve a
three-year term, commencing January
4, 1965.

Board Meeting
Eugene H. Adams, president of the
First National Bank of Denver, last
month attended a meeting of the
boards of the Kansas City Federal Re
serve Bank and its Oklahoma City
branch in Oklahoma City. Mr. Adams
is a member of the Kansas City bank
board.

Trust Department
The First National Bank in Golden
has become the first Jefferson county
bank to offer a complete trust depart
ment, according to President John A.
Fortune.

State Bank Sold
Sale of the controlling interest in
the Colorado State Bank, Denver, to a
group of Denver businessmen, was
announced recently by Forrest L.
Barkley, president and controlling
stockholder since 1911.
Although the sale price was not dis
closed, it was reported to be approxi
mately $5 million. The Colorado State
is Denver’s eighth largest bank with
more than $20 million in deposits.
Mr. Barkley announced also that he
was retiring and that he will be suc
ceeded as president by his son-in-law,
Elwood M. Kullgren, who has been
executive vice president for several
years.
Another son-in-law, Glen B. Clark,
a member of the Colorado Bank
Board, was advanced from vice presi
dent to senior vice president. Also
moved up to senior vice presidencies
were Dan Sebastian and Elmer Facer,
both of whom joined the Colorado
State recently after having been vice
presidents of the Denver U. S. Na
tional, Sebastian in the oil loan depart
ment, and Facer in the livestock loan
department.

Bank to Holding Company
The 75-year-old Weld County Bank
of Greeley announced recently that it
Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

intends to join the Denver U. S. Bancorporation, Incorporated, Denverheadquartered bank holding company.
In a joint statement, Norman Dean,
president of the Weld County Bank,
and Roger D. Knight, Jr., Bancorporation president, said the officers, staff
and directors of the Greeley bank
would retain their present duties and
responsibilities.

Named Director
Edward C. Hofman, senior vice
president and cashier of Central Bank
& Trust Company, Denver, has been
named a director of the Association of
Military Banks. The association in
cludes banks with facilities on mili
tary installations. Mr. Hofman was
also named recently to the American
Bankers Association committee for
personnel administration and manage
ment development.

Quarterly Dividend
Directors of the Central Bank and
Trust Company, Denver, have ap
proved the payment of the regular
quarterly dividend of 20 cents per
share, according to Elwood M. Brooks,
board chairman.
Payment will be made January 2,
1965 to the stockholders of record De
cember 10, 1964. The directors also
approved at the meeting the transfer
of $100,000 from undivided profits to
capital surplus. Capital structure of
the bank now stands at $13,783,712.

World-W ide Expansion
Waddell & Reed, Incorporated, un
derwriter and distributor of the
United Funds group of mutual funds,
is planning a world-wide expansion of
its sales organization, according to
James A. Sumner, resident vice presidet at Denver.
Plans call for the international sales
force to be operating in at least 12
foreign countries within two years,
Mr. Sumner reported.

New Bank Opened
First National Bank of Southglenn
opened December 1 for business in
the Southglenn Shopping Center, Den
ver. The bank is the third affiliate of
First National Bank of Denver. An
open house has been planned at the
new bank December 12.

W yom ing N ews
New Bank Officer
The appointment of Myron Blessing
as business development officer for the
Cheyenne National Bank was an
nounced recently by A. H. Trautwein,
bank president.
Mr. Blessing moved to Cheyenne
from Kansas City, Kans., where he
was vice president of the Kansas City
Mortgage Company.
Mr. Trautwein also announced plans
for a long-range program involving
broadened financial services to the
community.

Christmas Club
Andy Hansen, vice president and
cashier of the First State Bank of
Newcastle, recently reported that sav
ings amounting to more than $7,000
were mailed to members of the Christ
mas Club savings program at the
bank.

Bank Opening Set
Douglas’ second bank, presently un
der construction, is expected to open
its doors by the first of the year, ac
cording to Thomas Spencer, bank
president. The bank, First National
Bank at Douglas, was chartered May
8. Mr. Spencer, 30, goes to Douglas
from First National Bank in Golden,
where he was assistant cashier. His
background includes previous employ
ment as head teller at First National
Bank, McCook, Neb., three years as
assistant national bank examiner and
seven years with a McCook livestock
dealer and packing corporation.

Two Promoted
Paul Lowham and George Mcllvaine
were both promoted to the rank of
assistant cashier in action taken re
cently by the directors of the First
National Bank of Rawlins.
Mr. Lowham joined the bank as
agricultural representative in Janu
ary, after having been employed at
the Bank of America in Davis, Calif.
He obtained a B.S. degree in animal
husbandry from the University of W y
oming in 1962. He later earned a
business administration degree.
Mr. Mcllvaine has been employed
in the First National’s installment
loan department since March.

Occupy New Building
Center State Bank has moved into
its new three-story headquarters in
the Cherry Creek Shopping Center,
Denver. The bank occupies 9,300
square feet on the first floor of the
28,700 square-foot structure. The build
ing cost approximately $600,000.

Named to Board
Robert E. Fuechsel, director of vet
erinary medicine, was recently ap
pointed to the board of directors of
American National Bank of Riverton,
succeeding the late James F. Barquin,
director and organizer.

61
To ABA Post
Jackson F. King, president of the
First National Bank of Casper, was
elected to serve on the executive com
mittee of the national bank division
of the American Bankers Association
at the organization’s recent conven
tion in Miami Beach, Fla.

M ontana

NEWS
T. JACOBS

Laramie Bank Elects Director

President

R. C. WALLACE

Secretary

Missoula
Helena

The First National Bank of Laramie
has announced the election of M. Clare
Mundell, dean of the college of com
merce and industry at the University
of Wyoming, to its board of directors.
The announcement was made by Max
E. Fisher, president of the First Na
tional Bank.

R. Wickham Baxter, president of
the Pavalli County Bank, Hamilton,
has been appointed ABA vice presi
dent for the State of Montana for
the current year.

Honor 4»H Leaders

Elected Chairman

Lincoln County’s two banks, the
First National Bank of Kemmerer and
the Star Valley State Bank of Afton,
recently hosted the county 4-H leaders
at a dinner. The event was sponsored
by the banks in appreciation of the
service rendered by the 4-H leaders.
Carl Robinson is president of the
Star Valley State Bank and John A.
Reed is president of the First National
Bank.

Frank Servoss, vice president of the
First State Bank of Chinook, the name
of which was recently changed to
Blaine Bank of Montana, has been
elected chairman of the Bancorporation of Montana advisory council, ac
cording to Charles W. Rubie, Bancorporation president.
The council includes members from
seven affiliated banks.

Lander Bank Elects
Charles Bell, president of the Lander
State Bank, has announced the elec
tion of Frank S. Graham to the board
of directors. The action was taken at
a recent meeting of the board which
also authorized a $25,000 increase in
capital stock making a total of $100,000.

ABA

Vice President

Association Scholarships
Presented
Winners of the Wyoming Bankers
Association’s annual $400 scholarships
were announced recently. These are
presented to Wyoming high school
graduates who plan to enter the col
lege of commerce and industry at the
University of Wyoming.
This year’s winners were Kenneth
R. Potter, Lusk, and Valerie Moorman,
Lander. Presenting the scholarships
was Robert E. Bryans, president of the
Wyoming Bankers Association and ex
ecutive vice president of the First Na
tional Bank of Casper.

Staff Additions
Charles Shewey recently arrived in
Livingston to assume his new duties
in the time pay department at the
First National Park Bank.
Mr. Shewey, a graduate of Sun
dance, Wyoming High School, has at
tended the University of Wyoming
and Black Hills State College in Spearfish, S. D.

S. E. Crocker
Silas Elmer Crocker, 79, former
Boulder bank president, died recently
in Libby.
He was a native of New Ulm, Minn.,
and worked in banks at Butte and
Tacoma, Wash., prior to moving to
Boulder. He also operated a real
estate and insurance business in Mis
soula for 25 years, retiring this year.

Wins Landscaping Award
Donald K. Hogoboom, president of
the Security Bank and Trust Company
of Casper, was recently presented with
the Community Planning Commission
“ Hats Off” award. The award was
presented for the bank’s efforts to
landscape the area around its new
building.

of the new bank and John Cloud is
vice president.

Bank Authorized
Authorization for establishment of
the First State Bank of Missoula, the
city’s fifth banking institution, was
received recently from Albert F. Leuthold, Helena, state superintendent of
banks.
The bank is to be an integral part
of construction to be carried out to
serve the new businesses on the city’s
south side, according to Randolph Ja
cobs, vice president and trust officer
of the First National Bank.
Location of the new bank was not
divulged. Mr. Jacobs said that con
struction, pending determination of
details, could include one building or
several smaller structures.
Bank

Opened

Official opening day was observed
last month at the newly-formed First
State Bank of Whitefish. A grand
opening was to be announced at a
later date. Russell Abell is president

C. S H E W E Y

R. PEPPER

He later enlisted in the Navy. Fol
lowing his discharge from the service,
he joined the Commercial Credit Cor
poration in Rapid City, S. D. He most
recently was office manager of the
corporation’s office in Billings.
Russell Pepper has also joined the
staff of the First National Park Bank.
Born and raised in Park county, he
was graduated from high school there
as valedictorian of his class. He is a
1964 graduate of Montana State Col
lege.

Retiree Open House
Open House was held recently by
employees of the Daly Bank of Ana
conda, in honor of Miss Blanche Beaudette, assistant cashier, who retired
from her position with the Daly Bank
and Trust Company after 41 years of
service.
Her career began as a stenographer
in 1923. She was appointed secretary
to the president in August, 1934, and
was elected assistant cashier in Au
gust, 1952, to become the first and only
woman officer of the bank, and one of
the first woman officers in Montana
banking circles.
Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

We wish you a Merry Christmas... We wish
A

you a Merry Christmas ... We wish you a

Merry Christmas ... and a Happy New Year

T o the good wishes o f the season, we add our sincere thanks for
your friendship and g o o d w ill. It is gratifying to feel that, in w ork
ing together with you, w e have helped contribute to the grow th and
developm ent o f the area.
W e are lo o k in g forw ard to serving you even more h elp fu lly in
1965 to make the year a m ost successful and prosperous one for you.

k
Member Federal Deposit Insurance Corporation

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Bank in Atkinson and Glenn H.
Adams, president of the Chambers
State Bank in Chambers. Glenn’s son
Ralph is cashier at the bank in Cham
bers.

\ < ‘Ì H * n * k : i

NEWS
N, T. T1EMANN
HARRIS V. OSTERBERG

President
Exec. V.P.

Wausa
Omaha

Valentine
SPOKESMAN for bank super
visory a u t h o r i t i e s told the
N orthwestern B anker that as o f De
cember 1 , it appears the shortage at
the Nebraska State Bank in Valen
tine is approximately $1,800,000. The
embezzlement has been confessed in
writing by Richard Davenport, who
had been president of the bank since
shortly after World War II following
the death of his father.
Mr. Davenport admittedly had mis
appropriated funds over a period of 14
years. A key factor in uncovering the
embezzlement at this time appears to
stem from the recently initiated order
by State Banking Director Henry Ley
for state bank examiners to do outside
verification on loans and deposits. An
inkling of irregularities came to light
in this fashion and further detailed in
vestigation disclosed the full extent of
the shortage.
At the request of the state banking
director, the FDIC moved in as re
ceiver and through December 1 had
paid all claims up to the insured
$10,000 amount for depositors so cov
ered who had made proper claim. The
principal claims remaining are those
in excess of the $10,000 limit which
are then lodged against the receiver
ship and these claims remain to be
negotiated.
Capital structure as of October 1 was
$671,770. which together with two fidel
ity bonds totaling $1,300,000, provides
total capital to the receivers of nearly
$2 million. The shortage appears to be
$1.8 million. However, there has been
no determination of potential loan
loss, but it was felt by the authorities
that some loan loss, possibly a substan
tial amount, might be realized due to
the liberal lending policy reported to
be followed by Mr. Davenport.
The former bank president surrend
ered voluntarily to authorities and was
free on $50.000 bail.
In related action, LeRoy Abbott,
president of the Bank of Wood Lake
and principal owner of about 10 other
banks in Sandhills territory, received
permission from the Nebraska bank

Bayard Bank Remodels

e i.it
g
ta
r
o
h
S
ing department and the FDIC to move
the bank from Wood Lake into Valen
tine and rename it Bank of Valentine.
An injunction sought by directors of
the closed bank to prevent this move
was granted, but the Wood Lake bank
moved into Valentine and is located
two doors from the Nebraska State
Bank building and open for business.
It has initiated proceedings to pur
chase the former bank property.
A hearing to determine whether Mr.
Abbott and others related in the case
should be held in contempt of court
was continued from November 30 to
January 11 at 9:30 a.m. in Cherry Coun
ty District Court.
It is understood that the procedure
of obtaining direct verification of loans
and deposits will be continued by state
bank examiners, a move supported by
most of the Nebraska banking frater
nity. The matter of outside audits and
direct verification on an individual
bank basis has been a subject of in
terest to the state association for some
time.— End.

Open House at Bennington
The Bank of Bennington recently
held an open house following com
pletion of a major remodeling job.
At least 500 persons attended the
event.
H. E. Roe is president of the bank.

The First National Bank of Bayard
recently completed a new remodel
ing project. An adjoining building
was added to the present building and
converted into private offices and a
waiting area.

Break Ground in Grand Island
Ground breaking ceremonies were
held last month for the new drive-in
facilities of the Overland National
Bank, Grand Island. G. J. Armstrong,
president, turned over the first shovel
of dirt.

Attends Bank W om en’ s
Convention
Mrs. Amy Reiss, cashier of the
Bruning State Bank, recently attended
the National Association of Bank
Women convention at Memphis, Tenn.
Eleven other Nebraska bank officers
attended this convention.

Holds Open House
The Farmers State Bank of Eustis
last month held an open house in
observance of the bank’s 75th anni
versary. Newly-remodeled facilities
were also shown to the public.
Herman Brockmeier is president of
the bank.

Cattlemen’ s Conference
At Sidney

Farmers and local businessmen
were guests at a special dinner last
month hosted by the First National
Bank of Lyons. Leon Langemeier, ex
ecutive vice president in charge of the
event, reported excellent attendance.

More than 200 livestock men from
western Nebraska attended a special
Cattlemen’s Conference sponsored by
the Sidney National Bank. Featured
on the program were Cecil Means, vice
president of the Livestock National
Bank in Omaha; Dr. Paul Guyer of the
University of Nebraska, and Arthur
F. Kulakofsky, buyer-manager for the
Central Market, Omaha
Masters of ceremonies for the meet
ing were Robert Rauner of Gurley
and Francis L. Goodwin, Jr., directors
of the bank.

Mrs. Sarah Adams

Changes at Kimball

Mrs. Sarah Adams, 90, widow of
the late Edward Adams, died recently
in Atkinson. She served 25 years as
vice president of the Chambers State
Bank, which was organized by her
husband in 1901.
Two of Mrs. Adams’ sons are Ne
braska bankers: Leo T. Adams, ex
ecutive vice president, First National

In recent changes at the Bank of
Kimball, Kennard Hubbs has been
promoted to assistant vice president,
Ted Nieme has been named to assist
ant cashier, and Conrad Flohr has re
turned from the service and was ap
pointed cashier.
Joel H. Wiens is president of the
bank.

Bank Hosts Dinner

Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

ON R. OSTRAND, vice president
D
and commercial loan officer of
the First National Bank of Omaha, has

been appointed head of the corre
spondent bank department to succeed
Frank L. Love, vice president, who
died October 30.

D. R. O ST R A N D

F. L. L O V E

Mr. Love had joined the bank on
July 1, 1961, to head the department
as vice president and agricultural spe
cialist, after a successful career in sev
eral phases of the livestock industry.
Mr. Ostrand has a wide acquaint
anceship among bankers in Nebraska,

Iowa, and surrounding states since he
has worked for several years as part
of the correspondent bank-commercial
loan officer team of the First National
in providing credit and overline serv
ices to correspondent banks and their
customers.
After graduation from the Univer
sity of Nebraska, Mr. Ostrand was a
B-24 pilot overseas with the Army Air
Corps, receiving the Air Medal with
clusters and the Purple Heart. Upon
return from service he became asso
ciated with the C. A. Swanson and
Sons Company in the merchandising
department. He joined the First Na
tional Bank August 7, 1950, where he
worked in the installment loan de
partment, the correspondent bank de
partment, advertising department, and
for the past seven years as a lending
officer in the commercial loan depart
ment.
He has been a member of Robert
Morris Associates since 1959, serving
presently as a Governor of the Mis

Municipal and Corporate Bonds
Listed Stocks
Unlisted and Local Stocks
ORDERS EXECUTED ON ALL PRINCIPAL EXCHANGES

CHILES & COMPANY
Member, Midwest Stock Exchange

OMAHA, NEBRASKA
412 Farm Credit Building

LINCOLN, NEBRASKA
1321 P Street

Phone 346-6677

Phone 432-3324

LEXINGTON, NEBRASKA
Ernst & Bieck Building

CHADRON, NEBRASKA
999 East 6th Street

Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

souri Valley Chapter. He became a
director of the North Side Bank in
1961 and a director of the Johnson
County Bank in Tecumseh, Neb. in
1962. Mr. Ostrand attended the School
of Financial Public Relations at North
western University, graduating in
1956. He is also a 1960 graduate of
the Agricultural Credit School at Iowa
State University.
Mr. Love had been in failing health
the past year before his final illness
of two month’s duration. His national
reputation in the livestock industry
was based on a career of service to
that segment of agriculture. A native
of London, Ontario, Canada, Mr. Love
attended the University of Toronto,
where he received his B.S. degree in
agriculture and his Masters Degree
in 1935. Thereafter, he served the
college as director of Livestock Exten
sion until 1937, when he moved to the
United States as head of agricultural
relations and livestock service depart
ments for Wilson & Company in Chi
cago. In 1944 he was director of
livestock buying for the company’s
operations in this country, Canada
and South America.
In 1952, Mr. Love owned and man
aged the Love Livestock Company and
was general manager of the System
Investment Corporation, a farming,
ranching and cattle feeding operation
in Wyoming, Nebraska and Nevada.
As head of the First National’s cor
respondent bank division, he widened
his acquaintance among bankers in
surrounding states and was in great
demand as a technically qualified
speaker for the livestock and banking
industry.
* * *
David R. Johnson, vice president of
the Omaha National Bank, spoke re
cently to a combined meeting of the
men’s and women’s night school
groups at Glidden, Iowa. He attended
the meeting on farm finance at the
request of Bob Van Horn of the First
National Bank in Glidden.
>K =1= *
Kermit Hansen, vice president of
the U. S. National Bank, has been
appointed chairman of the Douglas
County Centennial Committee. The
Centennial will be celebrated in 1967.
* >i= *
The old Florence Bank took another
step toward its destiny when it was
recently decided that the bank will
become a museum. The building is
one of the oldest surviving commer
cial buildings in the area and was
once the meeting place of the state
legislature.

* * *

Ground was broken last month for
the Lippold Building at the corner of

That the Blessings of Peace he oun
peace to hm/d and grow and plan
for the future with confidence.
THE

OMAHA

NATIONAL

BANK
Member Federal Deposit Insurance Corporation

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1964

Nebraska

News

90th and Dodge Streets. The building,
which will house the West Omaha
National Bank, should be open by
August, 1965.
* * *
The election of four officers was
announced last month by Edward W.
Lyman, president of The United States
National Bank of Omaha.
Robert J. Harley, Howard AV. Niel
sen and Richard D. Shearer were
named assistant cashiers. Charles A.
Powell was elected assistant trust offi

cer.

R. D. SH E A R E R

C. A. P O W E L L

Mr. Harley, 38, is manager of sys
tems and programming at the U. S.
National’s computer center. He has
been with the bank since September,
1963. A native of Idaho, Mr. Harley
has attended General Electric and
IBM Computer Schools, in addition
to the University of Idaho.

THE

CENT

Howard Nielsen joined the bank in
April, 1964, as a representative in the
correspondent department. He is a
native Omahan and a former vice
president of the Douglas County Bank.
Mr. Shearer, 39, is manager of the
U. S. National’s proof and transit de
partments. Prior to joining the bank
in 1960 he was assistant manager of
the Associated Retailers of Omaha.
Mr. Powell, 35, has been in the trust
department since joining the bank in
December, 1963. Mr. Powell, a Certi
fied Public Accountant, was formerly
senior accountant at Moeller, McPherren & Judd.
* * *
Victor Smith, vice president of the
Omaha National Bank, became the
first Nebraskan to win the annual na
tional award of the Chi Phi Frater
nity. The honor stems from efforts by
Mr. Smith to get the fraternity recog
nized on the University of Nebraska
campus three years ago.
* * *
The Southwest Bank of Omaha
hopes to move to its permanent ad
dress at 88th and Center Streets by
early next summer, according to Perry
A. Francis, president. The bank,
opened in December, 1961, is now op
erating at the Loveland Shopping
Center, 90th and Center.
>K * *
Omaha National Bank directors
have declared an extra dividend of
16 cents a share, payable in January
to stockholders of record December
3. Also declared was the regular 21
cents a share to be paid December 15.
* * *
Announcement was made recently
by Arthur L. Coad, president of the
Packers National Bank, of an exten
sive remodeling and addition program

BARGAIN

OFFER

at the bank at 24th and O Streets.
The four-story addition at the rear
of the building, as designed by Steele,
Wieinstein & Associates, Inc., will con
tain a new vault, office space, toilet
facilities and stairs. Space will also
be allocated for the future addition
of electronic bank computers.
The entire existing main floor pub
lic banking facilities will be com
pletely renovated. The existing walls
and ceiling will be removed and new
materials will be installed. During
this entire time, complete services
will be maintained.
* * *
Ronald L. Hale has been named
assistant cashier of the Security Na
tional Bank. He has been with the
bank since its opening, and prior to
that, was associated with lending in
stitutions in Omaha and in Minne
sota. He is a graduate of South Da
kota University.
* * *
Jens J. Jensen, executive vice pres
ident of the Farmers & Merchants
Bank, Bloomfield, Neb., was the win
ner of the Crystal Ball Livestock
Price Guessing Contest at the Sixth
Annual Beef Cattle Conference, held
in September and sponsored by the
First National Bank of Omaha.
Mr. Jensen came the closest to esti
mating the average price of slaughter
steers, feeder steers, and steer calves
at the Omaha Stockyards for the week
of October 19. He was recently pre
sented the Crystal Ball trophy and
plaque by Mervin F. Aegerter, assist
ant vice president of First National.
Over 450 guests from eight states,
served by First National’s correspond
ent department, were in attendance
at the Beef Cattle Conference, and
honorable mention is given to the fol-

PLAN

Makes it much easier for you to convert your accounts into buying their own checks
Ask our salesman about this plan.

12 0 1 SOUTH SIXTEENTH STREET

O MA H A 8 , NEBRASKA

Ù n i t e d S tates

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

This year Santa's pack includes a load of good wishes from
First National's Correspondent Bank Department.

Don Ostrand
vice president

Carl Bloom

Ralph Peterson

vice president

Mervin Aegerter
assistant vice president

W e ’ve enjoyed working with you in
1964 and are looking forward to
the prospect of serving you in 1965.
M erry C hristm as and a
prosperous N ew Y ea r to all of you.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Bob Brown
assistant vice president

FIRST
NATIONAL
BANK
OF OMAHA
Member Federal Deposit Insurance Corporation

Northwestern Banker, December, 1964

Nebraska

News
W . F . K n ie p , p re s id e n t, U n ion S ta te B a n k ,
B r id g e w a t e r , I o w a .
M. G r a ff, p re s id e n t, M cC o o k N a tio n a l
B a n k , M cC o o k , N ebr.
R ic k N e lsen , c a s h ie r, B u r t C o u n ty S ta te
B a n k , T e k a m a h , N ebr.
D a le S o re n se n , p re s id e n t, C o m m e r cia l N a
tio n a l B a n k , A in s w o r t h , N ebr.
P e te r H. N ielsen , e x e c u t iv e v ic e p re s id e n t,
S lo a n S ta te B a n k , S loa n , Io w a .

Plan New Addition
Construction began recently on an
addition to the Citizens State Bank in
Arapahoe. Two administrative offices,
a central lobby and additional book
keeping and storage space will be
housed in the new structure, accord
ing to R. F. Emmett, president.

Hold Auto Show
CRYSTAL BALL trophy and plaque are
presented to Jens J. Jensen (right) by
Mervin F. Aegerter.

lowing men whose estimates were
extremely close.
L. A. B r o o k s , e x e c u t iv e v ic e p re s id e n t and
ca sh ie r, G o r d o n S ta te B a n k , G o rd o n ,
N ebr.
P a u l A . P e te r s o n , e x e c u t iv e v ic e p re s id e n t,
S o u th e r n H ills B a n k , E d g e m o n t , S. D.
D ic k H a hn, Jr., a s s is ta n t c a s h ie r, C a rso n
N a tio n a l B a n k , A u b u rn , N ebr.
H a r o ld H. H a n c o c k , F a r m e r s & R a n c h e r s
S e r v ic e C o m p a n y , H e rm a n , N ebr.
C. J. S c h n e id e r , p re s id e n t, P la t ts m o u t h
S ta te B a n k , p la tt s m o u t h , N ebr.
J oh n C. W a ts o n , p re s id e n t, F ir s t N a tio n a l
B a n k , O’N eill, N ebr.
E. W . C la u sse n , p re s id e n t, F a r m e r s S ta te
B a n k , S c h le sw ig ', Io w a .
H e r b H a r t w ig , v ic e p re s id e n t, C r a w fo r d
C o u n ty T r u s t & S a v in g s B a n k , D e n is o n ,
Io w a .
M. F. V a n E r d e w y k , p re s id e n t, B r e d a S a v
in g s B a n k , B re d a , Io w a .

poration, will automatically process W
checking accounts and greatly aid in
the bookkeeping process, reports Fred
Bruning, president.
+-

Amendment 6 Passes
Nebraska voters last month passed
Constitutional Amendment 6 authoriz
ing the Nebraska Legislature to establish various classifications in the
money-lending business and fix inter
est rates above 9 per cent. The mar
gin of victory was around 15,000 votes. ^

Changes at Fairbury
Irl R. Else, president of the Fair
bury State Bank, reports the follow
ing changes in his bank: Harry ^
Zweifel has been elevated to executive
vice president; W. H. Else was named
vice president; and Dale Brinkman
to cashier.
,
V

The Farmers State Bank of Aurora
last month held an Auto Show and
Open House. Auto dealers were in
vited to display their cars on the
street in front of the bank while the
bank held open house serving coffee
and doughnuts.
According to Ed Coblentz, president,
dealers sold cars, merchants reported
increased activity and there was a
steady line of people through the
bank.

Lois A. Tepner, assistant cashier of
the Plainview National Bank at Plainview, and her husband recently returned from a vacation trip to the
Hawaiian Islands.

Automation Comes to Broiling

Opening at Beatrice

The Bruning State Bank recently
became one of the first rural banks to
install electronic bookkeeping. The
equipment, built by Burroughs Cor-

Complete Hawaiian Trip
■{

(

The Beatrice National Bank and
Trust Company recently opened its
new Hi-Park. This is a three-story,
five-level parking facility which will
accommodate nearly 200 cars. In ad
dition, there are two drive-up windows
and five offices on the street level.
Also added to the bank proper is ,
a new time and temperature sign. \
W. W. Cook, Sr., is president of the
bank.

Otto F. Paege

Otto F. Paege, 77, longtime Wisner
banker, died last month at West Point
where he had been hospitalized for
some time. He is survived by his /
widow, two sons and two daughters.
Jack Nellson

John Van Horne

Edwin Van Horne

Gets Face Lifting
Thes First National Bank of Beemer
is getting a face lifting. Ray Steffensmeier is president of the bank.

PROSPEROUS
N ew

Complete Remodeling Project
The Bank of Taylor at Taylor re- y~
cently completed a major remodeling
project and held an open house for
the community. Theodore B. Cole has
been president of the bank since 1949
and Guy Fletcher, vice president, has A
been with the bank since 1927.

Y e a r ! ''

FARM CREDI T BLDG.

OMAHA

PHONE

1 §n§ c

<»

345 2 2 4 1

Over 70 years of banking and investment experience

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. D A V E N P O R T & C O .
OM AHA

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Season’s Greetings From Your Capital City Correspondent
NATIONAL

BANKopCOMMERCE
TRUST & SAVINGS
L IN C O L N . N E B R A S K A

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1964

IJiM'iilii \ews

Receives FDIC Approval
The Federal Deposit Insurance Cor
poration reports it has granted ap
proval to the First Security Bank at
Sutherland. The bank is operating
with total capital accounts of $213,600.
F. H. Whitlake is president.

Holds Open House
The Sioux National Bank of Harri
son held an open house last month
with over 300 people attending. Door
prizes were presented and refresh
ments served, according to Miss Lilly
Larsen, vice president and cashier.
“10VE R N 0R FRANK MORRISON
JF recently reported that he had
asked Henry Key, Nebraska banking
director, to make recommendations to
him concerning means of tightening
Nebraska’s banking laws.
Gov. Morrison said that Mr. Ley’s
suggestion to increase the penaity for
embezzlement “probably would help
some.”
He noted that, in some cases, a man
receives a greater penalty for writing
a no-fund check than he does for a
large embezzlement. “The courts have
been too lenient in some cases of em
bezzlement,” he said.
He reported that Mr. Ley would
submit to him any changes in the law
which he sees as necessary to more
effectively detect banking irregulari
ties.
He also said that the banking di
rector had come under “unjustified
criticism” as the result of the $1.5 mil
lion fund misappropriation at the Ne
braska State Bank of Valentine.
“ Mr. Ley should be commended for
discovering the irregularities, he said.
He pointed out the fact that, while
the embezzling activities of Richard
Davenport had been going on for ap
proximately 14 years, Mr. Ley has
been banking director for only eight
months.
The governor also said that Mr. Ley
acted in the best interests of the de
positors of the state-chartered bank
when the banking department and the
Federal Deposit Insurance Corpora
tion approved the transfer of the
Wood Lake Bank to Valentine after
the Valentine bank was placed in re
ceivership.
The needs of the depositors and the
community were the only factors con
sidered by Mr. Ley when the action
was taken, the governor reported.
State Senator Terry Carpenter of
Scottsbluff criticized the transfer and
said he would introduce a bill in the
1965 legislative session calling for the
removal of Mr. Ley as banking di
rector.
Jji 5}C i{c
President E. M. Hunt reported that

(

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1964 will be a year of accelerated
growth and progress for First Ne
braska Securities, Incorporated. He
stated this growth is reflected in the
firm’s recently-released annual report
which showed total assets of $2,248,146,
an increase of $229,951 over 1963, and
capital, including stockholder subordi
nated notes and equity of $818,502, up
$156,217 over the previous year.
In the past year, First Nebraska Se
curities participated in 39 corporate
securities offerings, and managed or
participated in the underwriting of an
aggregate of $16,500,000 Nebraska mu
nicipal securities and industrial de
velopment revenue bonds.
Mr. Hunt reported that during the
year First Nebraska Securities in
stalled Quotron equipment, an instan
taneous quotation service making posible immediate quotations and other
data on all listed and many unlisted
securities. This expanded service, com
bined with a private wire system, fa
cilitates the prompt and efficient han
dling of all securities transactions, he
stated.
First Nebraska Securities is the
only Nebraska based member firm of
the New York Stock Exchange. Of
fices are located in Lincoln, Omaha,
Hastings and Grand Island.
* * *
The National Bank of Commerce
Trust and Savings, Lincoln, reported
resources totaling $95,687,333 in its
statement of condition as of October 1,
1964.
The bank’s capital account of $6,618,243 in clu d e s $2,600,000 capital
stock, $3,000,000 surplus and $1,018,243
in undivided profits. Deposits totaled
$88,173,866.

Plans Scholarships
The Board of Directors of the First
National Bank of Emerson recently
approved a proposal to grant a $50
cash scholarship to a high school sen
ior of Emerson-Hubbard Community
School and to a high school senior of
Sacred Heart School. Recipients of
this annual award will be approved
by the governing body of each school.

Elected IBA Director
At a recent election, A. C. Peterson,
president of the First State Bank of
Lodgepole, was elected as Nebraska
Director of the Independent Bankers
Association. The term is for three
years, beginning January 4, 1965.

Changes at Wallace
At a recent meeting of the stock
holders of the Farmers State Bank of
Wallace, Mrs. Marie C. Wolder was
elected president, filling a vacancy
created by the death of Charles L.
Cooper.
In another action, Carl Wolden was
named vice president and cashier, and
P. M. LaVelle, chairman of the board.
Frances V. Lawhead, of North Platte,
was elected to the, board of directors.

Holds Open House
The Butte State Bank recently
hosted an open house for the com
munity. J. G. Brewster, president, re
ports good attendance at the event
held in honor of the bank’s 20th anni
versary.

George J. Armstrong
George J. Armstrong, president of
the Overland National Bank at Grand
Island, died of a heart attack Novem
ber 30. Mr. Armstrong had been very
active in Grand Island community af
fairs and had been with the Overland
National since its founding in 1934.

Urges Foundation Support
Bankers throughout the nation are
being urged by Tilden Cummings,
chairman of the Foundation for Com
mercial Banks, to give their whole
hearted support to the Foundation’s
efforts to convince the public of the
benefits of “full service” commercial
banking. Mr. Cummings is president
of Continental Illinois National Bank
and Trust Company, Chicago.
Membership in the Foundation for
Commercial Banks now totals over
5,200 banks representing over 71 per
cent of deposits in the United States.

FIRST

NATIONAL

S T r u s t

C o m p a n y

12th & N Street —Lincoln, Nebraska

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Federal Reserve Bank of St. Louis

BANK

of Lincoln
Member: F.D.I.C.
Northwestern Banker, December, 1964

Hunk Selfs M o n e y fo r G ifts
(Continued from page 29)
tools are filled by him with literature, brochures and
advertising reprints. These are produced on a single
A. B. Dick mimeograph machine by bank personnel.
The primary job accomplished by the items duplicated
is attracting present and prospective customers to the
hank by informing them of the unusual “money gifts”
available.
The secondary purpose is to provide a rapid and eco
nomical means of producing copies of promotional pieces
used to inform other hanks of the program Hagerstown
Trust is using.
Part of the cost of the program is covered by the sale
of newspaper advertising mats. Banks, savings and loan
institutions or other organizations that receive Mr. King’s
explanatory package of literature can order samples of
“money items” and a series of newspaper ad mats. Local
printers can then “strip in” logos for promotions in any
city. The ordering institution can also duplicate the
sample literature to use in a local direct mail campaign.
Mr. King’s promotional methods are also simple and
inexpensive.
He uses some newspaper and radio advertising, and
supplies a mimeographed catalogue to local customers.
For the mailing pieces Mr. King has copy typed and art
drawn around one of the “for sale” items.
Employees Package

Costs are held down by having bank employees do all
manufacturing and packaging of the money gifts, includ
ing the creation of folded money items, such as birds,
bow ties, boats and rings.
The bank begins storing a supply of new coins and
fresh currency in mid-summer and during that season
begins preparation and wrapping of gift items. Most of
the items are stockpiled for the busy Christmas season
when gift items are in greatest demand, hut the hank also

George J. Armstrong
George J. Armstrong, president of
the Overland National Bank, Grand
Island, passed away November 30 of
a heart attack. He had been active in
community affairs and had been with
the bank since its founding in Febru
ary, 1934.

Joins Dallas Bank
Albert H. Cox, Jr., since 1962 an offi
cial of The American Bankers Asso
ciation, has joined the staff of First
National Bank in Dallas as vice presi
dent.

Heads Investment Group
Wendell W. Witter, partner, Dean
Witter & Company, San Francisco,
has been elected president of the In
vestment Bankers A s s o c ia t io n of
America at the annual convention held
in Hollywood, Fla.

James M. Kemper, Sr., Retires
In keeping with the retirement pol
icy of the bank, James M. Kemper has
retired as chairman of the board of
Horthwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

stocks special money gifts for graduation, anniversaries,
birthdays and Mother’s and Father’s Days. Chances are
that some coin items will he discontinued soon because
of the growing scarcity of newly minted money, Mr. King
indicates.
Success of the program can best he measured in a bank
er’s terms—dollars and cents.
In 1962, according to Mr. King, the bank sold 5,000
money items in 17 different forms and dispensed between
$25,000 and $30,000 through this program. Last year, more
than 7,000 items in 29 different forms were sold, just dur
ing the two and one-half weeks prior to Christmas. More
than $40,000 was dispensed during that period and more
than $50,000 over the year. In 1964, Mr. King expects an
increase of 25 per cent in the number of items sold and
indicates the program may conservatively reach the $100,000 mark in total dollars distributed. Individual money
gifts have run as high as $500 and $1,000 per item.
Profits Small

Profit dollars derived are understandably small, since
the program is designed as a means to attract customers
to other services.
“Our profits from sales little more than cover the cost
of making ad mats we send to banks and other organiza
tions requesting material, plus the cost of mimeograph
ing,” Mr. King says.
“Charges added to the face value of coins and currency
in the items are designed to just cover production, han
dling, mailing and other costs.
“We are lucky the program has been so popular, en
abling us to at least wind up in the black each year;
and, of course, we are rather proud of the fact that we
have an advertising and promotion program that directly
and measurably pays for itself,” Mr. King concludes.
—End.

Commerce Trust Company, Kansas
City. He will remain a director.
James M. Kemper, Jr., who has been
president of the bank since 1955, has
been elected chairman of the board
and president.
James M. Kemper, Sr., joined Com
merce Trust Company in 1916. In
1925 he was elected president and in
1939 he was elevated to chairman and
president. In 1948 he became chair
man of the board.
James M. Kemper, Jr., a graduate
of Yale University, joined Commerce
Trust Company as assistant cashier in
1947. In 1949 he was elected vice
president and director, and in 1955 he
was elevated to executive vice presi
dent.

10th Fed Promotions
Robert A. Olson, president of the
Kansas City Power and Light Com
pany, and W. S. Kennedy, president
and chairman of the board of The
First National Bank of Junction City,
have been re-elected to serve threeyear terms as directors of the Federal

Reserve Bank of Kansas City, Homer
A. Scott, chairman of the Fed board,
announced recently. Mr. Olson was
elected by member banks having cap
ital and surplus of more than $1 mil
lion and Mr. Kennedy was elected by
member banks with capital and sur
plus of $300,000 through $1 million.

Northern Trust Promotions
Following a meeting of its board of
directors, The Northern Trust Com
pany, Chicago, announced a series of
nine new officer appointments.
Elected assistant managers in the
bond department were the following
men: D. Richard Banks, Walter E.
Ladley, Blair C. Radford, and Ralph
W. Riecker, Jr., in the retail sales divi
sion; Paul A. Leonard and Robert L.
Yoder, government trading division,
and Michael J. McManus, New York
office.
Newly-appointed officers in the ad
ministrative department were Joseph
W. Nelligan, assistant manager, and
George S. Gordey, assistant building
manager.

To you w hom we have been privileged to serve, and to those
w hom we look fo rw a rd to servin g, we at Stock Y a r d s
N a tio n a l B an k w ish you all o f the Season’s good cheer
and a happy and prosperous N e w Y e a r .

STOCK YARDS NATIONAL BANK
of South Omaha, Nebraska

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1964

lis i y l o u r
C h ris tm a s
th is Y ea r
B e espeeialh f
B

r it jh t —

■s i i m I m a y y o u r N e w Y e a r h e
e s p e e i a U

P r o

6tb Avenue and Locust Street
Des Moines, Iowa
M ember: F. R. S.

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M ember:

F. D. I. C.

$1 Million Loan

Io w a

NEWS
v.

E. L. BALLOU
FRANK WARNER

President
Secretary

Storm Lake
Des Moines

Two Deaths
y

■
J

(

Kermit S. Paulson, 54, president of
the Northwood State Bank since 1954,
and John S. Veenker, chairman of the
bank’s board of directors since 1933
and one of the bank’s original in
corporators, died last month.
Mr. Veenker, a patient at Methodist
Hospital in Rochester, Minn., for ap
proximately one month, died there
early November 26. Death was at
tributed to emphysema.
Mr. Paulson died November 7, fol
lowing an illness of approximately 10
months.
Mr. Veenker, a Northwood druggist,
and a community leader, had filled
nearly every office of leadership in
the community during his years of
activity. He had served continuously
on the bank’s board since May, 1933.
During that time, he was absent from
just two directors’ meetings. He
served as president of the bank from
the time of its original incorporation
until January 8, 1946.
Mr. Paulson had been engaged in
banking throughout his adult life. In
1931, he joined his father in the
Farmer’s Savings Bank at Joice. Fol
lowing 10 years in that position, he
became a bank examiner for the Fed
eral Deposit Insurance Corporation,
with which he was associated for the
next 13 years.
Mr. Paulson also was active in com
munity affairs, having served as a
member and president of the local
school board and as an active mem
ber of various civic organizations. A
member of the Iowa Development
Commission, he was also secretary,
and later chairman, of Group Three
of the Iowa Banker’s Association.
H . V . H untoon
H. V. Huntoon, president of the
Union State Bank, Winterset, since its
inception January 2, 1935, died there
recently at the age of 69 years. Mr.
Huntoon was instrumental in organ
izing the bank and was active in its
affairs until his death.

Bemodeling Project
Winterset’s Union State Bank is
undergoing a major remodeling proj
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Federal Reserve Bank of St. Louis

ect, according to D. A. Bolton, cashier.
Included in the project is a new front,
a night depository, new teller stations
and new expanded loan offices.

Heads Credit Group
Peter F. Bezanson, Cedar Rapids,
was recently elected president of the
new American Industrial Bankers As
sociation, an organization resulting
from the merger of two giants of the
consumer credit field.
The merger, voted recently at a
meeting in Miami Beach, Fla., in
volves the American Finance Confer
ence and the old American Industrial
Bankers Association. It becomes ef
fective January 1, 1965.
Mr. Bezanson is president of the
Morris Plan Companies of Iowa, Cedar
Rapids. The merged organization rep
resents more than 500 independent
consumer credit companies with 4,000
offices in the United States and Can
ada.

The Merchants National Bank, Ce
dar Rapids, is now authorized to loan
up to $1 million to any one customer,
according to John T. Hamilton, II,
president.
Mr. Hamilton stated that the in
creased loan limit is possible because
of the recent action of the bank’s
board of directors which increased the
bank’s surplus from $8 million to $9
million. Combined surplus and capi
tal stock now totals $10 million.

Edward W . Clark
Edward W. Clark, 88, long-time Ma
son City banking executive and for
mer Iowa insurance commissioner,
died recently in Phoenix, Ariz., where
he had planned to spend the winter.
Mr. Clark had resided in Clear Lake
since his retirement.
A former state senator, he was the
leading figure in the organization of
the United Home Bank and Trust
Company in Mason City which opened
its doors in 1936.

Drive-In Bank
Plans have been announced for a
new drive-in bank in Denison. Drivein as well as walk-up and walk-in serv
ice will be provided by the First Na
tional Drive-In Bank of Denison.
Plans call for a complete remodeling
of the building presently on the site
of the proposed bank.

in sta lls C om p u ter S ystem

NEW COMPUTER system for the Security National, Sioux City.

HE Security National Bank of total bank computer system in the
Sioux City recently announced the Sioux City area.
installation of a new high-speed elec Mr. Gossett said that, as a result of
tronic computer system to provide the computer installation, service
faster, more efficient service for the charges will be computed on a more
bank’s customers.
current basis and customers’ state
C. R. Gossett, president of the bank, ments will include more detailed in
revealed that the system, which con formation than was heretofore pos
sists of an IBM 1240 bank processing sible.
computer, has been installed and is in
He also noted that when the system
operation,
reaches its full capacity it will en
The equipment, capable of reading able the bank to provide some data
and sorting as many as 1,200 docu processing services for businesses and
ments per minute, will mark the first other banks in the Sioux City area.

Northwestern Banker, December, 1964

Iow a

News

where
Northeast Iowa
banks look
for speedy,
accurate
service

New Bank President

Banks Increase

James H. Redman, executive vice
president of the Merchants and Sav
ings Bank of Janesville, Wis., and
president of the
Bank of Janes
ville, will become
president of the
S t a t e Bank in
Fort Dodge, Jan
uary 1, 1965, suc
ceeding Harry T.
Huff, who will be
come chairman of
the board.

The State Banking Department re
cently reported that two Iowa-char
tered banks increased their capital
stock last month.
Coralville Bank & Trust Company
of Coralville increased its stock from
$75,000 to $100,000 and Jefferson State
Bank of Jefferson increased its stock
from $200,000 to $300,000.

Mr. Redman is a
native of Sac City,
and entered the banking business in
1931, after attending Drake University
for two years. His first position was
with Corn Belt State Bank of Correctionville. He later became a state
bank examiner and for several years
was a special assistant to Superin
tendent N. P. Black. In 1949, he pur
chased controlling interest in the First
National Bank of Glidden which he
operated for five years. He subse
quently purchased a substantial inter
est in the Nevada National Bank of
Nevada where he served as president
and chief executive until joining the
Merchants and Savings Bank in 1958.
The Fort Dodge bank made contact
with Mr. Redman through Bankers
Service Company, Des Moines.

F irst H vví-í tur

,__________

Town-Wide Birthday
M. I. Roberts, chairman of the board
of the First State Bank in Diagonal,
was honored on his 85th birthday re
cently with a two-day, town-wide cele
bration which included a Pancake Day
in his honor. He has served as a
member of the bank’s board since
moving to Diagonal in 1937.
The previous day, Diagonal’s annual
Harvest Sale and parade saw the First
State Bank represented in the parade.
The bank’s float featured an old trunk
as a chest of treasure from which
poured such valuables as honor, truth
and unselfishness.

Appointed Director
Robert M. Conway, vice president
of Thorp Loan & Thrift Company and
of its parent firm, Thorp Finance
Corporation, was appointed a director
of the Iowa Installment Loan Asso
ciation at that organization’s recent
meeting in Des Moines.

N evada

-Z
J
k
e------ ,

NATIONAL BANK
O F W A TERLO O
110

EAST PARK AVENUE

WATERLOO,
PH O N E

235-03 31

(Area

IOWA
Code

319)

Federal Deposit Insurance Co rporation
Federal Reserve System

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NEVADA BEEF-COW PROGRAM—A large crowd of livestock fanciers braved the cold
recently to attend the first annual sale held for cooperators with the Nevada National
Bank’s beef-cow program. A total of 100 head of livestock brought a total of $10,000
at the sale. Wearing the heavy coat, acting as ring man, is Kermit J. Anderson, exec,
v.p. Roger Jensen is the clerk and Paul Thomas, Colo, is the auctioneer. The other man
in the ring is Gerald Kangley, representative of Eastern Iowa Breeders. The purpose
of the bank’s program is to increase the value of the area’s beef cattle by interesting
producers in artificial insemination.

N e a rly a ce n tu ry
o f serv ice to tfie
b a n k s a n d p u b lic
o f Iow a

if.^ j _ í' A , _ k í í _ T i ,
it is
WALNUT

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Federal Reserve Bank of St. Louis

FOURTH

tyi © cif

MEMBER

FDIC

DES

MOINES

Northwestern Banker, December, 1964

Iow a

News

B elm on d A d d ition D ou bles F lo o r Space o f B a n k

THE INTERIOR of the new addition to the First State Bank
at Belmond, Iowa, at left provides a bookkeeping room as well
as two private offices and a directors’ room, which can be seen
in background. The new section has walnut paneling, carpeting
in the officers and directors’ room, and vinyl asbestos tile in the
outer room. The offices are on the front of the new addition
which was faced with the same brick as the original building.
In exterior photo, addition is to left. The lobby remains in the

William C. Sclienk
William C. Schenk, 63, retired vice
president of the Live Stock National
Bank, Sioux City, died in that city
recently following a brief illness.
Mr. Schenk retired October 1, 1963,
as vice president of the Livestock Na
tional Bank, after nearly a half cen
tury of service with the institution.
He started as a messenger in 1916 and
rose to the vice presidency in 1950.

Clyde Rochholz
Clyde Rochholz, 73, president of the
Exchange Bank in Adair, died re

old building and was increased in size by one-third, permitting
an increase in teller windows from four to six. Total space was
doubled from 2,100 square feet to 4,200 square feet. Two new
coupon booths and storage space also are provided on the first
floor. About 1,000 persons attended open house on November
14, according to L. B. Cox, v.p. Previously, more than 100 bank
ers were guests at a special open house.

cently in St. Joseph’s hospital, Omaha,
following a short illness.

New Vice President
Lynn S. (Bill) Fuller has been
elected a vice president of the Du
buque Bank and Trust Company. He
was previously vice president and
cashier of the Jackson State Savings
Bank in Maquoketa.
His work at Dubuque Bank and
Trust will be in the area of real es
tate, commercial and farm loans as
well as the servicing of general bank
ing needs.

Art Frey Is Elected
Director of Rath Packing
Arthur J. Frey, vice president of
Continental Illinois National Bank
and Trust Company, Chicago, has been
elected a director
of Rath Packing
Company at Wa
terloo, Iowa. His
election was an
nounced following the November
meeting of the
board of directors.
Mr. Frey is well
k n o w n among
Iowa
bankers,
A. J. F R E Y
having begun his
banking career at Patterson, Iowa, in
1921 and working in banks in Des
Moines and Perry before joining a
predecessor bank of the present Con
tinental Illinois in the mid-1920’s. For
a number of years he has represented
the correspondent bank division in
Iowa.

Edward Chaloupka

^
^
\

v
'■

—

Edward Chaloupka, 75, a pioneer of
the Yale community and a member of
the board of directors of the Yale
Farmers State Bank, died recently in ^
the Dallas County hospital in Perry
following a lengthy illness.

Construction Underway

Construction of the new State Bank
of Sioux Rapids is currently underway,
according to Charles Wetzeler, execu
tive vice president of the new bank- j
ing firm, who expressed the hope that
the new structure would be completed
in January, 1965.
N o rth w estern

B anker,

D ecem ber,

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Federal Reserve Bank of St. Louis

1964

--------------------------------------------------- s\

dealers
already
this
N
oone sim
ple reason
There are lots of reasons why 748 progressive business
men, or groups of businessmen, have taken on the
Purina Dealer Franchise and opened up for business.
First, they like the idea of being connected with the
world’s leader in the business of manufacturing formula
feeds. They know that Purina is building more mills
and growing. They like the feeling that Purina is in
the feed business to stay.
They like Purina’s full line of research-backed and
farm-tested products—CHOWS for nearly every type
of bird or animal in any type of setting or climate;
and a complete line of HEALTH A ID S—disinfectants,
insecticides, wormers, and treatments.
Purina dealers like the aggressive sales force in front
of them — both the highly trained company salesmen,

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Federal Reserve Bank of St. Louis

and their own Purina-trained employee salesmen. And
more.
Bankers like new Purina dealerships, too. Thousands
of bankers are partners in Purina dealerships—directly
or indirectly. Either way, they know that a Purina
dealership brings new money into a rural community,
a town, and into the bank.
So more and more bankers are working directly with
Purina dealers—like these 748 new ones—extending
credit to them for building and expansion, and to the
livestock and poultry farmers they serve.
Good business for Purina dealers means good business
for bankers. For more details, see the district Purina
salesman, or write Ralston Purina Company, Dept. 259,
Checkerboard Square, St. Louis, Mo. 63199

Northwestern Banker, December, 1964

Iles Moines Xews

MAJOR stock purchase in the continue under the presidency of Mr.
Bankers Trust Company by John Sterling.
Kuan, president of the Ruan Transport Bankers Trust Company has total
Company, was announced early this assets of more than $90 million. Capi
month by Robert J. Sterling, president tal is $1.5 million; surplus, $1.5 million,
of the bank, following a meeting of the and undivided profits, $6.7 milion. To
hoard of directors. tal shares of stock outstanding are
With the pur 60,000.
;{c
>{i
chase, Mr. Ruan
The
95th
anniversary
of the Capi
is r e p o r te d to
have acquired at tal City State Bank was noted with
least 25 per cent a month-long celebration which com
of t h e b a n k ’ s menced early in November.
The bank, founded in Des Moines,
stock. Actual pur
November
3, 1869, scheduled several
chase price of the
stock was not dis special events during the month-long
closed. C u rren t observance.
market value of
Robert Sterling, president of the
th e s t o c k has
been quoted at approximately $120 per Bankers Trust Company, attended the
organization committee meeting of the
share.
American B ank
Mr. Ruan’s purchase included the
ers Association in
stock held by John Shuler, president,
N ew Y ork, De
Shuler Coal Company; S. F. McGinn,
cember 3 and 4.
chairman of the board, Parkway Inns,
Mr. Sterling is
Inc., and most of the stock of Hubbell
the A.B.A. v ice
Bros., Inc.
p r e s i d e n t for
Mr. Ruan heads Ruan Transport,
Iowa.
one of the nation’s largest haulers of
The state and
bulk commodities. He started the firm
regoinal vice pres
in 1933 by buying one used truck and
idents handle liai
hauling petroleum. Today, Ruan oper
son between the
R. J. S T E R L IN G
ates in 31 states and maintains 44
A.B.A. and its 18,terminals. Mr. Ruan also heads Ruan 065 member banks and branches. The
Equipment Company, Ruan Leasing purpose of the meeting was to ac
Company, Ruan Cab Company, and he quaint the members of the organiza
is the founder and head of Carriers tion committee with present and fu
In s u ra n c e Company, a nationally- ture programs of the A.B.A. and to dis
known trucking insurance firm. He is cuss general policy questions.
=i= * *
a trustee of the Equitable Life Insur
ance Company of Iowa and of Drake
Gerald O. Nelson, vice president,
University.
lowa-Des Moines National Bank, has
President Sterling said that James been asked by Reno Odlin, president
of the American Bankers Association,
H. Windsor, president of the Equitable
Life of Iowa and a trustee of the to continue to serve as a member of
Frederick M. Hubbell estate, Mr. Mc the Federal Agency Relations Com
mittee of the ABA for the 1964-65
Ginn and Crawford C. Hubbell, vice
president of the bank, will continue as year.
* * *
directors. Mr. Ruan has been a direc
E.
F.
Buckley,
chairman, and B. C.
tor of the bank since 1960.
The management of the bank will Grandgaard, president, of Central Na

Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

tional Bank and Trust Company, reported early this month that directors
declared a 5 per cent stock dividend
as of December 24 to stockholders of
record December 9, thus increasing
capital to $5,250,000. Surplus was also
increased to $5,250,000 by transfer from
undivided profits, giving total capital
and surplus of $10,500,000 and a legal
loan limit of $1,050,000, the largest of
any Des Moines bank.
* * *
Garland Russell has been appointed
general manager
of the Iowa Pack
ing Com pany, a
s u b s i d i a r y of
Swift & Compa
ny, with home of
fices in Chicago.
He will also be
r e s p o n s ib le for
The Swift plant
in Marshalltown.
Mr. Russell has
G. R U SSEL L
been with Swift
for 39 years and was most recently
general manager of the company’s
plant in East St. Louis, 111.
* * *
Joseph V. Goldbach has recently
been appointed president and chief executive officer of the National Bank of
St. Petersburg, Fla. Mr. Goldbach was
senior vice president of the Florida
bank. Until 1958, he was with the
lowa-Des Moines National Bank serv
ing as an assistant cashier in the Cor
respondent Bank Department.
* * *
John Chrystal, Iowa superintendent

T-

/
*

of banking, has been appointed a mem
ber of the executive committee of the
National Association of Supervisors of
State Banks.
* * *
Emi l R. Bow
lin, vice president

of Central Nation- v
al Bank and Trust
C o m p a n y , an
n o u n ce d his re
tirement as of No
v e m b e r 15. Mr.
Bowlin was em
p l o y e d by the
bank in 1944 and
E. R. B O W L IN
was a vice presi- r
dent in the Com
mercial Loan Department. He will be
associated with Leasing, Inc.
The State Banking Board last month
approved an application made by the
Valley Bank and Trust Company for a
detached teller facility at 17th and
Grand. The facility is awaiting ap
proval from the Federal Deposit In
surance Corporation.

Commerce Trust men like Bill Irby are skilled
professionals, with the knowledge and experience
to provide the proper solutions to your banking
problems. One out of every ten banks in the na
tion now benefits from their skillful handling
of correspondent matters. Give them a call.

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Federal Reserve Bank of St. Louis

B ill Irb y
A s s is t a n t V ic e -P r e s id e n t

(ommerce Trust (ompany
Kansas City’s Oldest and Largest Bank
Member Federal Deposit Insurance Corporation

Northwestern Banker, December, 1964

Iow a

News

Rezoning Petition
A petition, requesting the rezoning
of a residential area to a commercial
area, was submitted recently to the
city council by the First National
Bank of West Union.
The bank requested that property
on Bradford Street be rezoned in or
der to permit the bank to construct
drive-in banking facilities there.

Ad Agency Recognized
LaGrave Advertising Agency, Des
Moines, has been elected to member
ship in the American Association of
Advertising Agencies, according to
Edward LaGrave, Jr., president of the

agency. This firm is the first in Des
Moines and only the third in Iowa
to become a member of the AAAA.
Mr. LaGrave stated that less than
10 per cent of all agencies in the
United States belong to AAAA and
that these firms handle approximately
75 per cent of the national advertising
volume.

The couple had been overcome by
carbon monoxide fumes in their home
sometime the previous day.
Prior to his retirement, Mr. Miller,
67, was president of the Iowa State
Bank in Algona, which he helped
found.

Banker, W ife Recovering

Robert W. McGee, vice president in
charge of industrial development for
the Valley National Bank, Phoenix,
Ariz., has been named president and
chief executive officer of the new inde
pendent Thunderbird Bank of Glen
dale, Ariz. He is
the son of R. K.
McGee, president
o f th e C l a r k e
C o u n t y State
Bank in Osceola.
The building for
the new bank is
e x p e c t e d to be
completed in midR. W . M cG EE
A p r i l a n d the
bank is expected to open in May.
Mr. McGee has a masters degree in
business administration from the
Wharton School of Finance, Univer
sity of Pennsylvania, and a bachelor
of science degree in business admin
istration from Simpson College, Indianola.
He joined the Valley Bank and
Trust Company, Des Moines, as a
trainee in 1947 and rose to the post
of vice president in 1955. He went to
Arizona as assistant vice president in
Valley National Bank’s commercial
loan division in 1956.
In 1959, he was transferred to Tuc
son, Ariz., as vice president and senior
loan officer for the bank’s eight
branches in that city. Returning to
Phoenix in 1960 as vice president in
charge of one of the bank’s two com
mercial-industrial loan divisions, Mr.
McGee was named to his present
state-wide post in 1963.

A retired Algona banker and his
wife, Mr. and Mrs. Ralph Miller, were
recently reported recovering after
having been discovered unconscious
and in critical condition in their home
Sunday morning, November 22.

Best Wishes
for a
Happy Holiday
Season
fromall your
friends at
Drovers

Named Bank President

Let Remodeling Contracts

U N IO N

STOCK YARDS • C H IC A G O

M EM BER

Northwestern
Banker, December, 1964
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Federal Reserve Bank of St. Louis

F .D .I.C .

Contracts for the enlarging and re
modeling of the First State Bank
building in Gowrie were let recently,
according to Maurice Lindquist, presi
dent.
Both the exterior and the interior
of the building will be remodeled and
the facilities of the bank will be dou
bled by taking over the west side of
the present building. In addition to a
new front, the bank will have an
enlarged public lobby with paneled
conference rooms on the west side.
Air conditioning and a walk-up teller
window will also be added.

iB e r r u
C h r is tm a s

Strong Friend of the Independent Banker

THE MARQUETTE NATIONAL BANK

OF M IN N E A P O L IS

•

S E V E N T H AT M A R Q U E T T E

•

FEDERAL 3-5411

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis

Iowa

News

C ircular H ank Sur Cium !tn pit!s

cording to L. J. Paulson, executive
vice president and cashier of the bank.

New Hank Building

ARCHITECTS SKETCH by Brooks-Borg of Des Moines of new bank building in Coon
Rapids.

ONTRACTS were let and ground ture connected to the new building
was broken recently for a new via a glass-enclosed walkway.
bank building to be constructed by the
Iowa Savings Bank at Coon Rapids.
First Forum Success
The new building, in the form of
The First Forum held recently at
a circle, will be approximately 84 feet the First National Bank of LeMars
in diameter. It will provide approxi was attended by approximately 100
mately 1,500 square feet of office and bank customers and residents of the
work area and will feature a central LeMars area, according to E. C. Lee,
lobby on the inner portion of the cashier.
circle with private offices and work
The forum, concerning “Wills, Es
area on the circle’s perimeter. The tates and Estate Planning,” featured
bank vault will be a separate struc- Richard Carey, of the trust depart
ment of the Iowa-Des Moines Na
tional Bank, Des Moines, a guest
speaker.
“ The response was great and we re
ceived many compliments,” Mr. Lee
As the nation's largest executive place
said. He noted that the bank plans
ment service, Cadillac has the facilities
and the banking consultants to provide
additional forums in the future.

BANKING HEADQUARTERS

confidential, personal service in repre
senting . . . individuals and employing
clients.

Typical opportunities:
PRESIDENT
L a rg e

to $35,000

m id w e s t b a n k .

TRUST OFFICER
S e n io r

to $18,000

a d m in is t r a t iv e .

DIR. MARKETING SERVICES
M k t.

re s e a rc h

a p p lic a t io n s .

. $18,000

C e n tra l

COMPTROLLER

U .S .

. $15,000

C P A . D a ta p r o c ., b a n k o r S & L e x p .
a n d s o u th e a s te rn lo c a t io n s .

INSTALLMENT LOANS
B ra n c h a n d
c a tio n s .

m a in

o f f ic e

C e n tra l

SECURITY ANALYST
S t r g . c o m m o n s to c k e x p . To w o rk
a c c o u n ts a n d b a n k p o r t f o lio s .

M any

tru s t

. $12,000

T ru s t d e p a r t m e n t a n d c o m m e r c ia l
t io n s .
M id w e s t a n d w e st.

bank

fu n c

$15,000

BANKS WANTED
1. The to p m arket p rice;
2. A pu rch ase r y ou ca n b e pro u d to
in tro d u c e as y ou r su ccessor;

E x p . a ll p h a se s ta x e s re l. t o tru s t a c c o u n ts a n d
g e n . b a n k in g f u n c tio n s .
E x c e l, p o t e n t ia l.

3. The sale e ffe c t e d c o n fid e n tia lly
w ith little e ffo rt on you r part;

Strictest Confidence Assured

T H E N , b e fo re y ou m ake co m m itm e n ts to
an yon e , co n s u lt us w ith o u t e xpen se or
o b lig a tio n . Y o u will be g la d y ou d id .

Please call or write:
Frank Henley or Charles Dodd
Banking Division

CADILLAC ASSOCIATES, Inc.
29 East Madison Bldg,.
Chicago, Illinois 60602
Area Code 312 — Financial 6-9400

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Robert E. Hade, Indianola, has been
appointed account executive in Iowa
for First Financial Advertising Group,
according to the
firm’s president,
Arthur R. Greene.
Mr. Hade will
present a variety
of marketing pro-,
grams to Iowa
financial institu
tions in behalf of
the national bank
ma r k e t i n g firm
headquartered in
R. E. H A D E
Brookline, Mass.
The group is the official sales pro
motion agency for the Foundation for
Pnmmpripal

Named Bank Director
William (Bill) Bernstein, Oskaloosa
realtor, has been named a director of
the Iowa Trust and Savings Bank
there, filling a vacancy created by
the recent death of Seth Thomas, it
was announced recently by Herbert
W. Sauter, bank president.

Assistant Cashier

IF you plan to sell, and you want—

OPERATIONS OFFICER
TAX OFFICER ___

John H. Nie, vice president and
director of the Mechanicsville Trust
and Savings Bank in Mechanicsville
for the past 25 years, died there re
cently. His death was attributed to a
heart attack.
Mr. Nie, 63, was the owner of the
Nie Grain and Feed Company and
owned several farms in the area, ac-

$12,000
w ith

Group Representative

John H. Nie

.... $12,000

f u n c tio n s .

The Fairfax State Savings Bank
has let a contract for a new bank
building, according to J. L. Krall,
president. Kirk Gross Company of
Waterloo was the architect, and Schoff
Construction Company, Lisbon, is gen
eral contractor. The new building is to
be completed approximately March 1,
1965.
The bank also announced that Gor
don K. Sorg, Independence, recently
began working as a teller at the bank.
He came to Fairfax from the First
State Bank, El Paso, Texas, where
he had been employed as a teller.

O v e r 4 0 yea rs' e xp e rie n ce sellin g banks.
H u n d re d s o f b o n a fid e , c a re fu lly in v e s tig a te d ,
p ro s p e c tiv e purchasers.
A ll n e g o tia tio n s s t r i c t l y c o n fid e n tia l.

Bankers Service Company
Box 1435

•

Henry H. Byers, President
Des Moines 5, Iowa • Ph. 282-7800

Daryl K. Akers has been elected as
sistant cashier in the agricultural de
partment of the First National Bank
of Mason City. A native of Dows, he
entered the hardware business with
his father in Albert City following his
graduation from high school.
He later began his banking career
at the First National Bank of Clar
ion. Following military service during
the Korean conflict, he joined the
First National Bank of Mason City as
head teller. He later managed the
First Drive-In Bank and has worked
in several areas including bank oper
ations and the installment loan de
partment.

UÓ

T im e, tide and the H olid ay Seasons
have a w a y o f creeping up on us . . .
especially d u rin g these busy d a y s!
T im e flies by so fa s t that it seems like only
yesterd ay we expressed our sincere hope fo r a
jo y fu l H olid ay Season to our m a n y banking frien d s.
The folk s at the F ir st N a tio n a l once again
w a n t to wish all of you a very

V ìie r n j

C d íir iá tm a ó

u n ii d

'View

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ijee a r

Northwestern Banker, December, 1964

Iow a

News

A tte n d M a n a g em en t S chool

Dallas Center, had been named an )
executive officer of the bank effec
tive January 1, 1965.
Mr. Lomen is presently a cashier
at the Brenton State Bank at Dallas if
Center. He is a native of Decorah
and a graduate of Iowa State Univer
sity. Prior to his seven years at Dal
las Center, he was associated with
the Wright County Bank, Clarion.

Named Bank Cashier

GLEN REYNOLDS

H. V. ROWENHOEST

JOHN J. BUCKLEY

OHN J. BUCKLEY, assistant vice business, the program, under the di
president, Central National Bank rection of Roger F. Murray, Sloan
and Trust Company, Des Moines; Glen Colt professor of banking and finance,
G. Reynolds, assistant vice president, was held in mid-November at Arden
Iowa State Bank, Des Moines, and House, the Harriman campus of Co
Henry V. Rowenhorst, executive vice lumbia University, five miles north of
president, Northwestern State Bank, New York City.
Orange City, were among 82 senior
The six-day meeting has been de
level commercial bank executives se scribed by Hoke S. Simpson, director
lected from all parts of the country of executive programs, as a “ short
and from all branches of the banking term, intensive course designed to
industry to attend the sixth annual bring participants into contact with a
session of Columbia University’s com faculty of authorities drawn from
mercial bank management program.
business, education and commercial
Sponsored by the graduate school of banks; and to thereby acquire knowl
edge, techniques and skills relating to
the administration and operation of
the banking business.”

TENSION
ENVELOPES FOR
EVERY BANK SERVICE

BANK
ENVELOPE
SPECIALISTS
BANK
ENVELOPE
SPECIALISTS
BANK
ENVELOPE
SPECIALISTS
BANK
ENVELOPE
SPECIALISTS

• B a n k -b y -M a il
• Checkbooks
• Transit M a il
• Correspondence

BANK
ENVELOPE
SPECIALISTS

Tom Siskow recently assumed his
new duties as assisant cashier at the
Thornton Bank, Thornton. Mr. Sis
kow, a 1955 graduate of the Thornton
high school, is also a graduate of Ma
son City Junior College. He had been
employed at the Public Loan and Dis
count Company in Mason Ctiy.

• D riv e -in Banking
• M iC R Systems

To Bank Board

• Note Notices

John J. Murray, 38, a member of
the Mitchell, Mitchell and Murray law
firm in Fort Dodge, has been named
a member of the First National Bank
of Fort Dodge board of directors.
The announcement that the board
was increased from nine members to
ten was made by Earl J. Underbrink,
bank president.
A former Webster county attorney,
Mr. Murray is presently completing
his first term as state representative
from Webster county.

• Payrolls
• Savings Books

BANK
ENVELOPE
SPECIALISTS

Assistant Cashier

• Statements
Call your experienced
Tension envelope
specialist

ENVELOPES
Des Moines Factory and Sales Office:

TENSION ENVELOPE CORP.
1912

G ra n d A v e . , P . O . B o x 1 3 4 1
D es M o in e s , Iow a 5 0 3 0 5
Phone 2 4 4 -2 1 3 1
S a le s O ffice s: C e d a r R a p id s + D a v e n p o r t
F a c t o r ie s : D e s M o in e s , K a n s a s C i t y , S t. L o u is ,
M e m p h is , F o r t W o r t h , M in n e a p o lis ,
S o u th H a c k e n s a c k , N . J .

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ronald E. Taylor, now serving as
vice president of the Seymour State
Bank, Seymour, has been named cash
ier of the Postville State Bank, Postville, replacing Philip A. Jacobson
who resigned to take a position with
the American Lutheran Church mis
sion field in Ethiopia.
Mr. Taylor, a 1957 graduate of Iowa
State University, will assume his new
duties January 1, 1965. He previously
was employed by the Citizens State
Bank, Donnellson.
Mr. Jacobson said, “While it is dif
ficult to leave my position as cashier
of the Postville State Bank and the
Postville community, I feel it is a
Christian responsibility to enter this
service because of the immediate need
in Ethiopia.”
Mr. Jacobson and his family will
leave for Addis Ababa, the capital of
Ethiopia, sometime after January 1,
1965.

r
I

Time and Temperature
A new time and temperature sign
has been installed at the Mediapolis
Savings Bank in Mediapolis.
The electronic sign automatically
gives 17,280 readings every 24 hours.

Bank Buys Site
The First National Bank of Council
Bluffs has purchased two lots at 25th
and Broadway Streets, according to ,
President Dale Ball. The land, he
said, is for possible future use. It was
purchased, he said, to insure avail
ability of a site on Broadway in the
event the bank needs it in the future. ,

Bank Officer Honored
Miss Mary Vonderhaar, assistant
cashier of the First National Bank in
Humboldt, was honored recently at a
reception at the bank in recognition
of her 35 years of service with the
bank.
Miss Vonderhaar was presented a >
government bond by Ben P. St. John,
president of the bank.

New Bank Officer

Appointed Director

The board of directors of the Waukon State Bank, Waukon, announced
recently that E. Richard Lomen, 35,

C. R. Atwell, president of the Mount
Pleasant Bank & Trust Company, re
cently announced the appointment of

Iow a

News

iianh E nlarged

OPEN HOUSE was held in the newly re
modeled and enlarged quarters of the Story
County State Bank at Story City last
y month, according to Ray A. Sweet, pres.
Increased space provides room for more
teller windows, two new conference rooms,
a stand-up desk, booth and private cus
tomer’s room in the safe deposit area, and
bookkeeping room behind the tellers’
> area that is double its former size. New
services include an after-hours teller win
dow, open from 8 a.m. to 9 a.m., Monday
through Saturday, and a night depository
and envelope drop, both in the bank vesti1 bule.

Dan E. McAllister, local seed corn
dealer, as a director of the bank.

)
Leases Building
Farmers Savings Bank of Steam
boat Rock has leased the H. J. Garles
/ building in Eldora. The lease is sub
ject to approval of an application to
transfer the bank charter from Steam
boat Rock to Eldora. With approval,
j the bank would employ the Garles
building as temporary quarters pend
ing determination of a permanent lo
cation.
The banking department has re' ceived two applications for establish
ment of state-chartered banks in El
dora. The second was submitted by
a group of Eldora businessmen.
>

Our most sincere wishes
to you for a blessed
Holiday Season... from
all of us at the
Security National Bank

Named Director
The board of directors of the Na
tional Bank of Waterloo has annouced
the appointment of Don M. Graham
as a director to fill the vacancy cre
ated by the death of Mr. Graham’s
father, James M. Graham, last April.
Mr. Graham is president and treas
urer of Bigson and Graham, Incor
porated, realtors.

Sponsor Meeting
The Crawford County Trust and
Savings Bank, Denison, and the Dow
City office of the Defiance State Bank,
recently co-sponsored a meeting in
■y Denison designed to explain the
Northwest Iowa Farm Business Asso
ciation to area farmers.
The organization is a non-profit en
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

SECURITY NATIONAL BANK
6TH AND PIERCE STREETS

•

SIOUX CITY, IOWA

•

MEMBER F.D.I.C.

Northwestern Banker, December, 1964

Iow a

News

WANT ADS

Rates 20 cents per word per
insertion. Minimum: 10 words.

NORTHWESTERN BANKER
306 15th St., Des Moines, Iowa
WANT TO BUY
Banker will buy controlling in
terest of bank up to $10 million
in deposits. Will consider buying
up to 100% of stock if necessary.
All replies confidential. Write
Box NBC, c/o NORTHWEST
ERN BANKER, 306 15th Street,
Des Moines, Iowa 50309.
BANKERS — We are confidential
recruiters exclusively for bank
clients. Our coverage is nation
wide. Send resume including your
present salary and requirement,
and geographical preference to
DON HOWARD PERSONNEL,
179 Broadway, N. Y., N. Y. 10007,
or phone 201—BA 7-9000 for info.
LEGAL FORMS
Any form you need we stock, or
will print. Special forms then
stocked for prompt shipment on
reorders.
IOWA LEGAL BLANK
& PRINTING CO.
Box 238, Webster City, Iowa

terprise designed to assist local farm
ers with their farming operations.

J. F. Kennedy, president of the First
National Bank in New Hampton, re
cently keynoted an economic develop
ment conference for northeast Iowa
with a plea for cooperation, rather
than competition, among neighboring
communities.

recently approved promotions for four i
members of the bank’s staff.
Mrs. Marguerite Sokol, assistant
cashier since the early 1940’s, has been
promoted to the position of cashier. ry
David Luett, assistant to the farm
service department manager, is now
an assistant vice president.
Mrs. Gertrude E. Wiersma and Mrs.
Patty McNabb were promoted to as- *
sistant cashiers.

Newly Remodeled

To New Quarters

Keynote Speaker

The First State Bank of Tabor re
cently held open house in its newlyremodeled bank building. The interior
of the bank was remodeled and a new
front was added to the building.

New Duties

Guest Speaker
John Chrystal, superintendent of
banking for the state of Iowa and
president of the Iowa Savings Bank,
Coon Rapids, spoke recently before
the Newton Rotary club.
Mr. Chrystal, who has made several
trips to Russia, including a recent trip
at the invitation of the Soviet govern
ment, spoke on the general subject
of Russia.

Carroll H. Conner
Carroll H. Conner, a member of the
board of directors of the First Na
tional Bank of Davenport, died re
cently of a heart ailment in Daven
port. Merchandising manager for M.
L. Parker Company, Davenport, he
had formerly been employed by
Younkers stores and, during that
time, resided in Des Moines.

Construction Begins

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. D A VEN P O R T & C O .
OMAHA

Construction work started last
month on a major improvement proj
ect at the Union State Bank in Winterset. The project includes a new front,
remodeling of the teller lobby and con
version of the directors’ room to new
office space.

Write or call collect
365-9117

Contracts for the remodeling of the
Wellman Savings Bank in Wellman
have been let and construction is
scheduled to commence in April 1965.

Promotions Announced
The board of directors of the Jackson State Savings Bank, Maquoketa,

Area Code 319

REGINALDFIGGEASSOCIATES
C o n fid e n tia l C o n s u ltin g Service
M e rc h a n ts N a tio n a l B ank B u ild i
C edar R apids, Iowa

Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ä VP* O PI \ M
IN

E. W. Morgan, executive vice presi
dent of Community National Bank
and Trust Company, Knoxville, was \
recently named to the additional post
of trust officer for the institution.
Other recent promotions to assist
ant cashier were awarded Clifford
Danner and John Kamerick.

Retires
Herman J. Kueter, executive vice -,
president of the First National Bank \
of Bellevue, retired recently.

Mercanti le Promotions
Kenton R. Cravens, chairman of the
board of Mercantile Trust Company,
St. Louis, announced the following
promotions and appointments: Robert
L. Bergmann was elected vice president; Elden R. Sternberg, trust officer; Richard L. Johannesman and Wil
liam M. Wilcox were appointed assist
ant vice presidents, and William T.
Springer and Clarence A. Sehrt were
named assistant cashiers.
Mr. Wilcox is p a r t i c u l a r l y wellknow in the N o r t h w e s t e r n B a n k e r
area, having traveled in Iowa for the
past few years. He attended the Iowa
Convention in October.

Re-elect

Contracts Let

BUYING
OR SELLING
A BANK?

The Monroe State Bank, Monroe, \
was expected to move from its old to
its new building early this month. An
open house, according to bank officials,
will be held at a date to be announced.

bale

Registers

"Accepted Sale Registers by Bank
Clerks Everywhere"
For information write

THE A C O R N PRINTING C O
O akland. Iow a

7th Fed

Directors

James H. Hilton, deputy chairman of the board of the Federal Reserve
Bank of Chicago, announced that John
H. Crocker, chairman of the board,
The Citizens National Bank of Deca- ^
tur, Decatur, 111., has been re-elected
a Class A director of the Federal Re
serve Bank of Chicago.
Mr. Hilton also announced that Wil
liam E. Rutz, director and member of
executive c ommi t t ee, Giddings &
Lewis Machine Tool Company, Fond
du Lac, Wis., was re-elected a Class
B director of the bank.
^
Each director was elected for a term
of three years beginning January 1,
1965.

89
HECK Savers’ correction labels . . .
made of special insulated paper
C
with pressure adhesive backing . . .

The Bankers’ Market Place
A Page Telling What’s New for Banks and Bankers

Each month the Bankers' Market Place tvill bring you listings of new
products, specialty items, banking equipment, and g ift items which will
help you and your staff do a better job. This is the selection fo r this month.

HE “Tallyprinter” recently an
nounced by Cummins-Chicago Cor
poration, leading manufacturer of pa
per-handling equipment for business
and industry, brings “a new concept of
~y reliability and versatility to repetitive
office counting and imprinting jobs,”
the company says.

new folder, “Paper Handling,” as well
as an illustrated specification sheet on
the new Tallyprinter to those inter
ested. To receive copies of this litera
ture, write: Cummins-Chicago Corp.,
4740 N. Ravenswood Avenue, Chicago,
111., 60640.

According to the announcement, the
new Tallyprinter feeds, counts, dates,
\ signs, stamps, prints, codes, cancels,
imprints, endorses, numbers and
stacks. Virtually any office or commer
cial imprinting and counting operation
J consuming expensive clerical time can
be improved with the Tallyprinter.
Due to Cummins’ exclusive Magic
Flow ink fountain, and a unique ink
4 that does not evaporate, the inking is
entirely automatic and neither re
quires nor allows operator adjust
ment. Cummins says this feature rev suits in a sharp, clear printed impres/ sion every time. The major feature
of the Tallyprinter, however, is the
completely new Cummins “Accur-Matic” Feed, the first feed that consistent/' ly handles i n t e r mi x e d sizes and
weights of paper with an accuracy of
well over 99 per cent.

RECENT publication of interest
to trust officers who have respon
sibility for trust investments is a 20page booklet titled, “ The Council Tools
and How to Use Them Effectively.”
Published by Studley, Shupert Trust
Investment Council, 860 Suburban
Station Building, Philadelphia, Pa.,
19103, this booklet provides an index
to the various tools and services pro
vided by the basic Council service to
banks in handling their trust invest
ment functions. A detailed report is
given on Council aids in the selection,
review and analysis of corporate se
curities.

Cummins’ Tallyprinter occupies 16
J x 19 inches of desk space and weighs
79 pounds. An optional adjustable
stand is also available.
Cummins’ Tallyprinter is offering its

packaged 1,000 to a roll in a new
self-dispensing box. Each label popsup as the roll is pulled through the
box top.
To insulate the magnetic ink on
checks requiring correction or nota
tion, Check Savers’ Correction Labels
are made of a special paper with un
usually close woven fibers. And a
slightly heavier paper is used to in
crease insulation qualities.
A free sample self-dispensing box of
labels will be sent on request. Write:
Check Savers, Inc., Dept. NBI, P. O.
Box 329, Park Ridge, Illinois 60068.
and versatile, these LeCOMPACT
Febure Self-Contained Chest and

Depository units can be installed in
a glass wall or in a building lobby, or
as a sidewalk or curbside kiosk. Ex
terior can provide stainless steel front
panel and flange with painted top,
back and sides—or completely stain-

Safe Manufacturers National
T HE
Association, New York, has pre
pared a new pamphlet in its Burning
Facts series on the distinctions be
tween record safes and money chests.
The eight-page pamphlet tells in de
tail why and how safes are intended
primarily to protect valuable records
from fire and related hazards, and
money chests are intended primarily
to protect cash and other valuables
from theft and burglary. The pam
phlet notes that many businesses, in
confusing the different purposes for
which this equipment is designed,
leave themselves open to substantial
loss from fire damage to vital records
and through theft and burglary.
Copies of the pamphlet may be ob
tained from the SMNA, 366 Madison
Avenue, New York, N. Y., or through
association members.

ARE

you

less covered if required. One or two
depository heads. Can have self-con
tained chest or connect to a chute for
curbside installation. For complete
information write LeFebure Corpora
tion, Cedar Rapids, Iowa 52406.

SELLING TO BANKERS?

If you are and you can meet our qualifications you can
20,000 PIECES of work per hour are easily
counted and imprinted by the new TallyT- printer introduced by Cummins-Chicago
Corp. Unusual flexibility is claimed for
the machine, which dates, signs, endorses,
cancels, counts and stacks a wide range of
sizes of different weight papers and light
, card stock. The Tallyprinter is so efficient
/ due to its completely reliable new “ AccurMatic” Feed and its Magic Flow ink
fountain which never needs operator ad
justment, Cummins claims.

Earn $50 to $150 Additional Per Week
Respected

Wisconsin corporation

with

accounts with financial institu

tions all over the USA offers its products to a limited number of sales
men who are operating in given territories.
for details.

References required.

W rite

TRAVELMATS CORP. OF AMERICA
Prairie du Chien, Wisconsin
Northwestern Banker, December, 1964

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

It’s Childish

Impatient Patient

John’s foreign car is so small that
when he was issued a ticket, he had
to appear in juvenile court.

A boy scout troop was being used
as a group of “guinea pigs” in a civil
defense test in a western city. The
mock air raid was staged and the
scouts impersonated wounded persons
who were to be picked up and cared
for by members of the defense or
ganization.
One scout was supposed to be on
the ground and await his rescuers,
but the first aid people got behind
schedule with their work and the
scout lay “wounded” for several hours.
When the first aid men finally ar
rived on the spot where the casualty
was supposed to be, they found only
a penciled note:
“Have bled to death and gone
home.”

Scenic Drive
“We spent our vacation in the car
touring the country.”
“Touring, eh? You must have passed
some beautiful scenery.”
“Oh, we must have! We averaged
over 500 miles a day!”

Easy Way

Childhood is that wonderful time of
life when all you have to do to lose
weight is take a bath.

Arithm etic Logic
Problem: If a nine-year-old boy can
pick two pounds of cherries in an
hour, how many pounds can he pick
in three hours?
Answer: About two pounds, if I
know nine-year-old boys.
Council Bluffs Savings B a n k ........................78
C um m ins-Chicago Corporation ................... 53

DECEMBER. 1964
A
Acorn P rinting .....................................................88
Am erican N ational Bank and T r u s t Chicago ................................................................37
A scot H o u s e ........................................................... 12
A shw ell and Company ..................................... 44

B
B ank of A m erica ................................................ 28
Bank Building and Equipment .................. 7
Bank of California ............................................46
B ank of M ontreal .............................................. 10
Bankers Service Company ............................ 84
Bankers Trust Company— Des Moines . .74
Bankers Trust Company— New Y ork . . . 4
B lack Sale S y s t e m ..............................................42
C
Cadillac Associates, Inc.................................... 84
Central National B ank— Des Moines . . . .18
Central States H ealth and L ife .................91
Chase M anhattan B a n k ...................................23
Chemical Bank .....................................................13
Chiles and C o m p a n y ......................................... 64
Christmas Club a C o r p o r a tio n ..................... 47
Commerce Trust Company—K an sas C i t y .......................................................81
Continental Illinois National Bank . . . . 1 5

Northwestern Banker, December, 1964

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Federal Reserve Bank of St. Louis

F. E. Davenport and C om pany..................... 88
DeLuxe Check Printers .................................. 6
Denver U. S. National B a n k ..........................59
Diebold, I n c o r p o r a te d ....................................... 39
C. L. Downey Company ...................................27
Drovers National Bank ...................................82
F
F arm Business Council, Inc............................20
R eginald F igg e A s s o c ia t e s ............................ 88
F irst National Bank-— Chicago .................. 9
F irst National B ank— Omaha ..................... 67
F irst National B ank— St. Louis ................. 17
F irst N ational B ank— St. Paul ................... 50
F irst National B ank— Sioux C i t y ...............85
F irst National Bank and Trust Company^
— Lincoln ........................................................... 71
F irst National Bank and Trust Company
— Tulsa ................................................................46
G
K irk Gross Company

Efficient Help
Newly-hired secretary to her em- \
ployer, “Do you want double-spacing
on the carbons, too, sir?”

C O N V E N T IO N S
February 1-2 — ABA 17th National
Credit Conference, Sheraton, Dal
las, Texas.
February 8-10 — ABA 46th annual
Midwinter T rust
Conference,
Waldorf-Astoria Hotel, New York.
March 8-10—A.B.A. National Automa
tion Conference, San Francisco.
April 8-10 — Independent B ankers
Assn., Annual Convention, The
D ip lo m a t H o te l, Hollywood,
Florida.
March 29-31—ABA National Install
ment Credit Conference, Conrad
Hilton, Chicago.
April 8-10—Independent Bankers As
sociation, 31st annual convention,
Diplomat Hotel, Hollywood, Fla.
May 31-June 4—American Institute of
Banking, 63rd annual convention,
Roosevelt Hotel, New Orleans.

O
R

R alston Purina Company .............................. 79
Recordak Corporation .....................................43 r
S
St. Paul Insurance Company •• •-,...............16
Security N ational B ank— Sioux City . . . .87
Stock Y ards N ational B a n k ..........................73
Studley Shupert Investm ent Council . . . 4 2
T

Iow a-D es M oines N ational Bank ...............92
Iow a L egal B lank and P rinting Co.............88

United Am erican L ife Insurance Co..........41
U. S. Check Book C o m p a n y ...........................66
U. S. N ational Bank— O m a h a .......................62
V
V a lley Bank and T rust— Des M oines . . .77
V a lley National Bank of A r iz o n a ............. 8
V an Horne Investm ents, Incorporated . .68

Omaha N ational B ank .....................................65
Ozark A ir Lines .................................................. 45

Tension E n v e lo p e s .............................................86
T ravelm ats Corporation of Am erica . . . .89

M arquette N ational B a n k .............................. 83

(

National Bank of Commerce ........................69
National Bank of South D a k o t a .................55
N ational Bank of W ate rlo o ..........................76
N ational Boulevard Bank— Chicago . . . . 2 6
Northern T rust Company ............................. 3
N orthw estern N ational Bank—
Sioux F a l l s ..............................................................56,

M ercantile T rust C o m p a n y ............................ 25
M erchants N ational B a n k ............................. 2
Midland National Bank ...................................48
M innesota Commercial M en’s A ssn ..............52

H arris T rust and Savings B a n k ................21
H aw keye Security Insurance C o m p a n y .. 14

George LaM onte and Son .............................. 11
LeFebure Corporation ..................................... 24

One-Sided
Driver’s License Examiner: “And
what is the white line down the cen
ter of the road for?”
Woman: “Bicycles?”
-

You needn’t tell a banker about the value of a specialist’s advice.
He counsels with them often— on legal, accounting and tax matters, for example.
In insurance, you should have a specialist, too. Central States specializes exclu
sively in insurance through banks and financial institutions. Consumer credit,
life, health, accident and hospital insurance for bank customers is no sideline
with us; we pioneered this field 32 years ago. May we have one of our specialists
explain

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Federal Reserve Bank of St. Louis

how Centra, States pro-

C e n t r a l

grams can make you money while

h e a l t h

doing your customers a service?

l if e

S t a t e s
c o

o f

o m a h a

Le s l ie k iz e r , p r e s id e n t

Some Sincere Wishes For Your Christm as... I May Santa discover, in your secret heart, the one itk
May there be a child at your house to help find and decorate the I
wish you hold, and fulfill it for all the years to come.
Perfect Tree . . . as fresh and lovely as the spirit of Christmas. I
And finally . . . may you find a moment in this happy se
May all of your family, from far and near, be gathered together B
let us see you, shake your hand, and say our thanks fc
for these joyous days . . . in good health and good fortune. B
friendship. Merry Christmas!

We’re here to help you get what you want

Io w a D e s M o i n e s •National Banh,
Sixth and Walnut, Des Moines 4 • CHerry 3-1191 • Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

Full text of The Northwestern Banker : December 1964, 70th Year, No. 929

FRASER