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-Federal Reserve Bank
of St. Louis

1 9 6 6

Federal Reserve Bank of St. Louis

The M erchants National Bank of Cedar Rapids
wishes you and your staff a M erry Christmas
and for the N ew Y ear, happiness and prosperity.


‘To our many friends in banking...
¿TVIerry Christm as —Tiappy ^ e w ‘Tear




C h ic a g o 6 0 6 9 0

• Financial 6 -5 5 0 0

• M e m b e r F.D.I.C.

No. 1006. 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,

Digitized mail
items) to above address.
Federal Reserve Bank of St. Louis


New Head of Division 7
For Chase Manhattan

Oldest Financial Journal West of the Mississippi

for your D E C E M B E R , 1966 reading
72nd Year

No. 1006


Across the Desk from the Publisher


Kirby Whyte Heads Bank PRM A— Convention Report
Central National Bank of Chicago Conference Report—
Malcolm Freeland
Frontispage— “ Christmas Eve”
How Do You Rate in Your Community Relations?—
A. H. Haakenson
Christmas Ideas for Bank Programs
A Look at H aw aii!— Malcolm, Freeland
Egg Production— From “ Pin Money” to Big Business
Record Number of Bankers Hear Farm Financing Ideas—Larry Nothwehr
New Dimensions of Bank Supervision— Lewis E. Davids
1967 Business Will Slacken— 1st National of Chicago Conference
Report— Ben Haller, Jr.
A t 1st National, St. Louis Conference— Bankers Choose Winners
in Recent National Elections

Twin City
South Dakota
North Dakota




Bank Financing Is
Changing to Meet New
Farming Demands
Lincoln News
Iowa News
Des Moines News
Iowa-Des Moines National
Conference Report


Index o f Advertisers
In the Directors Room
Conventions Calendar

306 15th S tre e t, Des M oines, io w a 50309, Telephone (A re a Code 515) 244-8163
G iffo rd De Puy

M alcolm K. Freeland

Business Manager
L arry W . N othw ehr
Advertising Assistant
M ild re d Savich

Circulation Department
Lena Sutphin

Field Representative
A I Kerbel

Field Representative
Joe M. Smith

Ben J. H a lle r, Jr.
Managing Editor
D avid L, Lendt
Bertha Soderquist
Field Representative
Paul M asters

Frank P. Syms, Vice P resident, 550 F ifth A venue, N ew York 36, JUdson 2-7126

Northwestern Banker, December, 1966
Federal Reserve Bank of St. Louis

John E. Donaldson, vice president
of the Chase Manhattan Bank, New
York, has been reassigned to head District 7 of the bank’s United States
department. In this capacity, he succeeds Cornelius D. Howland, whose
a p p oin tm e nt as
e x e c u tiv e v ic e w
p r e s i d e n t of
C hase Internaal In v estm en t
Corporation w a s *
announced in a
recent issue.
Division 7 cov­
ers the states of
Iow a, Nebraska,
Kansas, Missouri,
Colorado and Wy­
Mr. Donaldson has been in District *
3, which handles business in Ohio and
Pennsylvania. A 1942 graduate of
Syracuse University with a B.S. de­
gree, he was also graduated from the
School of Banking of the South. He
joined Chase Manhattan in 1949 and
after several promotions became a
vice president in 1964.

St. Paul F&M Marketing Head
Denver W. Swanson, vice president
and head of The St. Paul Insurance
Companies’ agency division, retired
November 30.
He was succeeded as head of
production and marketing activities
by Waverly G. Smith, secretary, cur­
rently in charge of the marketing de­
Mr. Swanson joined The St. Paul
in 1931. His 35 years of service have
all been in production. He was a state
agent and manager in Wisconsin, New
York and Indiana until 1946 when he
moved to the home office to organize
and head the agency division.
Under Mr. Swanson the post-war
agency force was rebuilt. Today it
numbers over 10,000 property-liability
He was promoted to assistant vice
president in 1959; assigned the respon­
sibility for market research and ad­
vertising in 1960; and advanced to „
vice president last year.
With the company since 1949, Mr.
Smith began as an adjuster. He was
claims manager in St. Louis from
1950 to 1956 when he transferred to
the field as a special agent in Florida.
In 1959 Mr. Smith was named head
of the property-loss department, and
in 1960 he joined the agency division *
to establish the company’s marketing
department which he has since headed.


Like the men from American National.
he’ll get there one way or another

to bring you our very best wishes for a
Federal Reserve Bank of St. Louis

Merry Christmas
and a Happy New Year
Correspondent Bank Division

Am erican National Bank


Northwestern Banker, December, 1966


F ou n d a tion R e p o r ts on S u rvey
RELIMINARY findings of the na­
tional survey of consumer attitudes
conducted for the Foundation for Com­
mercial Banks by Opinion Research
Corporation of Princeton, N. J,, reveal
that the full service banking theme
is more familiar to the public today
than it was four years ago, Richard
B. Beal, Foundation executive director,
announced recently.
The survey follows the foundation’s
1962 Politz Study in measuring ‘‘bench
mark” statistics and investigates other
areas such as the rising influence of

women in making financial decisions,
and the role of new facilities such as
computer services, credit cards and
other innovations. The full report on
the findings will be released.
Preliminary tabulations confirm that
“full service” is a promotable concept
and a useful framework around which
to sell banking services to meet the
diversified needs of the public.
More than 14 per cent more re­
spondents than in 1962 said they have
heard of a full service bank, and
three times as many of those surveyed

this year reported seeing the full ser­
vice bank emblem.
A full range of services under one
roof ranked high in the factors which
the public considered very important
in their choice of a banking institu­
When asked what new services they
would be most likely to use, the two
most popular selections of those sur­
veyed were: a bank identification card
for cashing checks where they were
not well known, and a full service
bank statement showing all their deal­
ings with the banking on a monthly
basis—services available only at full
service commercial banks.
The complete report on the survey
will show that serving people’s future
financial needs will require new forms
of checking, saving and loan services
as well, and will indicate how com­
mercial banks can best meet the chal­ I
lenge of a checkless and cashless
The survey examined present be­
havior and attitudes in five areas of
consumer finances to help define spe­
cific market opportunities.
areas are: when people receive in­
come; when family financial decisions
are made; when people purchase goods V
and services; when customers pay
bills; and when people make provision
for future purchasing through savings.
The new survey also endeavored to
delineate consumer attitudes toward
full service banks, and measure the
effectiveness of the foundation’s pro­

William B. Camp Named
Comptroller of Currency
William B. Camp, selected by Pres­
ident Johnson to succeed James J.
Saxon as Comptroller of the Currency,
is a veteran of

r\ —

s e r v ice in the
Comptroller’s of­
fice, as announced
ft 1
in an earlier issue.
F or the past
three years, he
has been first dep­
uty Comptroller,
the highest posi­
tion to which a
career employee can be appointed.
Born in Greenville, Texas, Novem­
ber 25, 1913, Mr. Camp was educated
at San Jacinto High School in Hous­
ton, at Texas Military College in Ter­
rell, and at Baylor University in Waco.
He joined the staff of the Comptrol­
ler’s office in February, 1937, was
named an assistant national bank ex­
aminer in 1941, and received his com­
mission as a national bank examiner

Our brand of banking is to give prompt, friendly, expert help
to you and your customers —based on 67 years of service —
over $1 billion in deposits — and over 100 offices — the
better to serve you.


O F F IC E :

Banker, December, 1966
Federal Reserve Bank of St. Louis


Federal Reserve Bank of St. Louis

from Secretary of the Treasury
Snyder in September, 1949.
Mr. Camp served as a national bank
examiner in the Fifth National Bank
Region and, for several years, was
responsible for the examination of the
larger banks in the District of Colum­
bia, Baltimore and their related metro­
politan areas. On numerous occasions
during this period, he was assigned
special duties in other areas of the
United States.
In January, 1961, Mr. Camp was
promoted to assistant chief national
bank examiner in the Washington of­
fice and, in April, 1962, was named
Deputy Comptroller of the Currency.

St, l*iiuI F & 3 M F a rn in qs at f*eali
St. Paul Fire and Marine In­
surance Company’s net operating
income for the first nine months of
1966 was $13,041,000, or $2.52 a share,
compared with $10,907,000, or $2.11 a
share for the first nine months of
Earnings for the period were the
best in the company’s history.
Property-liability premium income
was also at a new high. For nine
months in 1966 written premium in­
come totaled $192.7 million, up 10.2
per cent over $174.9 million for the
same period in 1965.

for BANK
T h e n et in com e ad v an tag e offered by
ta x -e x e m p t bonds con tin u es to figure

The $758,000 property-liability un­
derwriting loss through nine months
in 1965 was converted to an under- >
writing profit of $794,000 in 1966. Un­
derwriting profit is the amount by
which premium income exceeds claims
and expenses.
Contributing to the improved under- '-f'
writing record was the reduction in
catastrophe losses caused by severe
storms. Through September of 1966
there were no storms to compare with *
Hurricane Betsy. In September of
1965, Betsy ravaged wide areas of
Louisiana, causing record insurance
industry property losses in excess of
$700 million.
Investment income earned increased
12.5 per cent to $12,878,000, up $1,427,000 over the first three quarters of
As of September 30, 1966 assets
were $556.5 million. Capital and sur­
plus on September 30 was $246.2 mil­
lion, down $27.0 million from year-end
1965. The principal factor accounting
for the fall in capital and surplus was
the $33.5 million decline in the market
value of securities held in the invest­
ment portfolio.

Carte Blanche Chairman
Thomas R. Wilcox, executive vice
president of First National City Bank,
New York, has been named chairman
of Carte Blanche Corporation.
Mr. Wilcox succeeds J. Howard
Laeri, vice chairman of First National
City Bank, who is resigning as Carte
Blanche chairman because of new re­
sponsibilities as vice president of the
American Bankers Association.

p r o m in e n tly in th e in v e s tm e n t p la n ­
n in g of m o st banks. O ur offering lists

5 - Y e a r P in

a re w ell know n as a sou rce of th ese and
o th e r in v e stm e n t quality bonds, notes,
d eb en tu res an d equipm ent tru s t certifi­
c a te s —th e obligations of well estab lish ed
public bodies and co rp o ratio n s.

H A L S E Y , S T U A R T & CO.



wes tern Banker, December, 1966
Digitized forNorth
Federal Reserve Bank of St. Louis

PLACING a five-year service pin in
the lapel of Irving Seaman, Jr.,
chmn. exec. comm, and chief exec,
officer of Natl. Boulevard Bank,
Chicago, is Myron F. Ratcliffe,
chmn., as President Hans W. Wan­
ders looks on. An anniversary par­
ty was held for the 300 members of
the bank staff.


“Expect a lot from your correspondent
when your correspondent is the Harris”

Whatevery banker ought to know
about women. Is your marketing still aimed
exclusively at men—in a world largely owned by women?
Our W om en ’s Banking group can show you how to attract
n e w b u s in e s s by special appeals and special services for the
ladies. Just ask us.
Federal Reserve Bank of St. Louis

and " O \ \ T \ Z
Savings B / i l M l V
111 West Monroe St. * Chicago, Illinois 60690

Northwestern Banker, December, 1966


Lonijh \ a m i’ll D ro vers P re sid en t
election of Robert Lough as
president of the Drovers National
Bank of Chicago is announced by Wil­
liam C. Cummings, Jr., chairman of
the board.
Mr. Lough succeeds the late Leo R.
Gruber, who
passed away No­
v e m b e r 19, 1966
(story below).
O ther p ro m o ­
tions announced
by the Drovers’
board of directors
include the eleva­
tion of Stephen O.
B r a ttle a f a n d
John F. Keeley to
senior vice presi-

S. O. B R A T T L E A F

J. F. K E E L E Y

dents. All three of the newly-promoted
officers will continue to serve as mem­
bers of the board of directors.
Mr. Lough, a native Chicagoan, is
widely known in financial and invest­
ment circles in the middle west.
His service with the bank, located
in the Chicago Stock Yards area,
brought him from bank messenger to
the presidency. He was named as­
sistant cashier in 1934; assistant vice
president in 1945; vice president in
1949, and senior vice president and
director in 1955.
Mr. Lough has been active for many
years in the American Institute of
Mr. Brattleaf started his banking ca­
reer in 1922. In 1934 he was called by
the government to serve with the
Reconstruction Finance Corporation.
Some years later he became chief of
the loan division, and assistant man­
ager of the Chicago Office of the RFC.
In 1951 he resigned that post to join
the commercial loan division of the
Drovers National Bank, as assistant
vice president. In 1953 he was elected
vice president, in charge of the Drov­
ers Bank’s commercial lending activi-

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convenience of sales clerk. Sold on a M one y Back Guarantee.

Telephone Nos. 536-2651 or 536-2522
W rite Us for Sample Sheets and Information

Digitized forNorthwestern
Banker, December, 1966
Federal Reserve Bank of St. Louis

ties. He was named to the board of ^
directors in 1965.
Mr. Keeley has been active in Chi­
cago banking circles for 40 years. He
joined Drovers’ staff as assistant vice
president in 1949, after previous serv­
ice with two other financial institu­
tions. He established the Drovers
finance and installment credit depart­
ment which has become one of the 'D
bank’s important lending activities.
He became a vice president in 1950,
and was elected to the board of di­
rectors in 1965.

His career in banking began in
Plainfield at the Waushara County
Bank (later merged with the Union *
State Bank of Wautoma) shortly after
his graduation from high school. After
having been named assistant cashier
of that institution at the age of 20,
Mr. Gruber came to Chicago in 1926
and joined the staff of The Drovers
National Bank where his duties took
him through all phases of the hank’s
operations. In 1937 he was appointed *
assistant auditor and succeeded to the
position of auditor three years later.
The year 1943 saw his accession to the
post of comptroller of Drovers. Two
years later Mr. Gruber was elected
to the position of cashier of the bank
and in 1949 he was named to the addi­
tional post of vice president. As addi­
tional recognition the bank’s affiliate, v
Drovers Trust & Savings Bank, estab­
lished back in 1902, appointed Mr.
Gruber a vice president in 1954.
Upon the death of his predecessor,
George A. Malcolm, Mr. Gruber was
elected to the presidency of both Drov­
ers banks on February 28, 1955, in
which position he continued after the
banks were merged on July 1, 1962.
He was head of The Drovers National
Bank at the time of his death.

You can expect a little extra from Chase Manhattan
The extras come from what we call Consolidated
Correspondent Service.
As we see it, any good bank can give you an
adequate portfolio review, or dig up volumes o f
routine credit information on order. But service
goes a bit beyond the performance o f a profes­
sional chore.True correspondent service is a pack­
age concept. It consolidates all your needs as a
matter o f course; then imaginatively seeks out
additional ways to be helpful.

And it’s who and what we are that makes it
Federal Reserve Bank of St. Louis for us to consolidate service and give

you more. People—plus knowledge, experience,
tradition, facilities and size make us unique as a
banker’s bank. That’s why we’re the nation’s
number-one correspondent bank by quite a few
galloping lengths.
Call on us for anything. We’ ll show you the
value o f Consolidated Correspondent Service—
why you can expect a little extra from your friend
at Chase Manhattan.


National Association/Member Federal Deposit Insurance Corporation


ita nt; vvs W in S ta le O ffices
ANKERS have been elected to
state offices in a number of states
in the midwest and mountain areas.
As announced in an earlier issue,
N. T. Tiemann, president, Commercial
State Bank, Wausa, was elected Gov­
ernor of Nebraska on the Republican
ticket and will take office in January.
Other bank officers and directors
elected in this area, according to re­
ports received by the N o r t h w e s t e r n
B a n k e r , are:

W. H. Hasebroock, vice president
(inactive), First National Bank of
West Point.
Clifton B. Batchelder, director, The
Omaha National Bank, Omaha.

Clifford C. Sommer, president, Se­
curity Bank and Trust Company,
Charles R. Hansen, president, State
Bank of Rose Creek.
William G. Kirchner, president,
Richfield Bank & Trust Company.

Pat DuBois, president, First State
Bank, Sauk Centre.

F r en c h A w a r d

South Dakota

E. C. Pieplow, vice president, First
National Bank, Aberdeen.
Leland L. Steele, executive vice
president, Farmers & Merchants Bank
of Huron.
Dr. G. Robert Bartron, director,
Farmers and Merchants Bank & Trust
Co., Watertown.
Carl T. Burgess, director, First Na­
tional Bank of the Black Hills, Rapid
Carl T. Fischer, director, Pierre Na­
tional Bank.
Herbert Heidepreim, director, First
National Bank, Miller.
Bill Hustead, director, First Western
Bank, Wall.
Holger Angerson, advisory board
member, Stockyards Branch, North­
western National Bank, Sioux Falls.

James D. Jelbert, vice president and
manager, First National Bank of the
Black Hills, Spearfish,
Dean Mehlhaff, president, Eureka
State Bank, Eureka.
Dexter H. G u n d erson , director,
Farmers State Bank, Irene.
Dr. G. W. Mills, director, First West­
ern Bank, Wall.
E. W. Stephens, director, Pierre Na­
tional Bank.


RECEIVING Prance’s second high­
est government service award is
Bror W. Tinge, trade commissioner
and consul of Prance, and consultant
to the international department of
City National B&T, Kansas City.
Presenting the Ordre National du
Merite is the Honorable Jean Louis
Mandereau, Consul General of
Prance. Mr. Tinge, often referred to
as Mr. World Trade of Kansas City,
joined City National in 1945 and
organized the bank’s international
department. He has numerous deco­
rations from foreign governments.



Robert R. Rigler, executive vice V
president, Security State Bank, New
Hampton, minority leader, and Ken­
neth J. Benda, executive vice presi­
dent, Hartwiek State Bank, Hartwick.

A. L. Mensing, vice president, Amer­
ican Trust & Savings Bank, Lowden;
J. E. King, president, Peoples Nation­
al Bank, Albia, and E. M. Watson, *
president, First State Bank, Diagonal.
North Dakota


Community Bank
7rust Departments

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our five United States offices.

Ba n k




C ov & ia

Trust Investment Council
860 Suburban Station Bldg. Phila., Pa. 19103
Digitized forNorthwestern
Banker, December, 1966
Federal Reserve Bank of St. Louis

Ca/nada ..SpamAth& IbMcl

CHICAGO: Board of Trade Bldg.
141 West Jackson Blvd.

Robert Cresgrown, legal counsel,
First National Bank, Linton, and
Strasburg State Bank, Strasburg; H.
O. Beck, vice president, First National
Bank, Carrington; A. W. Luick, direc- *
tor, Peoples State Bank, Fairmount;
Evan Lips, director, First National
Bank, Bismarck; J. D. Coughlin, direc­
tor, Union National Bank, Minot; Da­
vid Nething, legal counsel, Stutsman
County State Bank, Jamestown; Gail
Hernett, vice president, Grant County
State Bank, Carson; John Decker, diV
rector, First Western State Bank, Mi­
not; Grant Trenbeath, director, Citi­
zens State Bank, Neche; Earl M. Kelly,
director, American National Bank,
Valley City; Emil Ivautzmann, vice
president and cashier, Mandan Secu­
rity Bank, Mandan, and Robert L.
Stroup, director, Union State Bank,

James Kent, director, Farmers &
Merchants National Bank, Hatton;

A re your profit dollars being
compressed by the narrowing gap
between interest paid on deposits and
interest received on loans? The North
Central Companies Plus P rofit
Program offers you tailor-m ade
insurance plans which not only
enable you to give your custom ers
needed protection, but to widen your
profit margin as well: The Red Shield
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autom obile and personal loan plans.
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Pittsburgh, Pennsylvania
W e s t V ir g in ia Life In s u ra n c e C o .

Huntington, West Virginia

Northwestern Banker, December, 1966



Russell Duncan, director, State Bank
of Fargo, Fargo; Lawrence Dick, direc­
tor, Farmers State Bank, Lisbon; Har­
ley Kingsbury, director, Grafton Na­
tional Bank, Grafton; Fred Hoghaug,
president, Ramsey National Bank,
Devils Lake; Gordon Aamoth, vice
president and trust officer, First Na­
tional Bank & Trust Company, Fargo;
Clark Jenkins, assistant vice president and manager of agriculture de­
partment, Merchants National Bank
& Trust Company, Fargo, and Jack
Bernabucci, director, Stutsman County State Bank, Jamestown.






It’s hard sometimes. Portfolio analysis is very much a
matter of opinion. But performance isn’t. Ours, for instance:
4.9% return over the past six years on our own portfolio.
And correspondent banks for whom we manage portfolios
have shown net earning increases of up to 46.3%. No dogs in
these holdings. But how about yours? If you’re not completely
satisfied, let a National Boulevard Bank portfolio analyst
take a penetrating look at your current holdings. He knows
each new situation requires a different solution so he doesn’t
use tired formulas to arrive at his recommendations. And
because of his up-to-the-minute knowledge of the present bond
market, he can suggest new investments which will be to your
greatest advantage. Get the full story about our investment
portfolio analysis by calling Charlie Schoeneberger.
He’ll send out one of our dog-catchers on the double.

WRIGLEY B U IL D IN G • 400-410 N. M ic h ig a n Ave., C hica g o
P hone (312) 467-4100 • M e m b e r F.D.I.C.

Digitized forNorthwestern
Banker, December, 1966
Federal Reserve Bank of St. Louis

Robert S. Cotton, director, First Na­
tional Bank, Glasgow.
William L. Mathers, director, First
National Bank, Miles City.
Rex Hibbs, director, First National
Bank, Billings.
Carl Lehrkind, director, Security
Bank and Trust Co., Bozeman.
,T. D. Street, president, Security
Bank and Trust Company, Bozeman.
Wm. H. Bertsche, director, Great
Falls National Bank, Great Falls.
Henry S. Hibbard, director, Union
Bank and Trust Company, Helena.
W. A. Groff, president, Farmers
State Bank, Victor.
Alex K. Sample, Jr., chairman and
president, Conrad National Bank,
Fred O. Broeder, director, Conrad
National Bank, Kalispell.
Stanley Nees, director, First State
Bank Poplar.







Jerry Wallander, vice president,
First State Bank, Froid.
Scott B. Stratton, vice president,
First National Bank, Great Falls.
Nels Hemstad, director, Montana
Bank, Great Falls.
Chase Patrick, assistant vice presi­
dent. First National Bank & Trust
Company, Helena.
O. Worden, vice president, West­
ern Montana National Bank, Missoula.

New Building for Fed
An official groundbreaking ceremony
last month signified the start of con- *
struction of a new facility to house
the Denver Branch of the Federal Re­
serve Bank of Kansas City. The struc­
ture, designed in a “modern classic”
style, will replace the bank’s outgrown
building erected in 1925.
Because of the increasing demand
for Federal Reserve services from
banks in Denver, in Colorado, and
northern New Mexico, the present
bank building has become inadequate.


' M -Æ ®

yo u r

m en



Edw ard H. Schoor

James J. R eedy

M ichael Se arles
Federal Reserve Bank of St. Louis

John H O berm ann

ames A Smith

e w ic z


Northwestern Banker, December, 1966


.Y#*fr P resid en t

W ells Vavij»

ICHARD P. COOLEY was elected
president and chief executive offi­
cer November 10 of Wells Fargo
Bank, San Fran­
cisco, the nation’s
11th largest bank.
H. St e p he n
C hase, fo r m e r
p r e s id e n t, has
been elected chair­
man of the board.
Ransom M. Cook,
who was chair­
man and c h ie f
executive officer,
R. P. C O O LE Y
has been named
chairman of the executive committee.
Mr. Cooley, 42, joined the bank in
1949 and since then has worked in
virtually every phase of the bank’s
operation, including a period as vice
president and manager of the Matson


Building office in San Francisco.
In October, 1964, he was elected
senior vice president and a year later
named executive vice president, as­
suming general responsibilities in the
senior management of the bank. He
was named a director in January of
this year.
Mr. Chase, 63, joined the hank in



1927, elected executive vice president
in 1960, and in 1963 named a director.
He succeeded Mr. Cook as president
in 1964.
Mr. Cook, 67, joined the bank in
1921 and was elected vice president in
1926, senior vice president in 1951
and a director in 1956. He was presi­
dent of the American Trust Company
at the time of its merger with Wells
Fargo Bank in 1960 and became president and chief executive of the merged
Under Mr. Cook’s leadership, Wells
Fargo has grown from 122 branches
to the present 216. Assets have in­
creased from $2.7 billion to $4.1 billion.
With Mr. Cook’s election as chair­
man of the executive committee, he
is relinquishing his responsibility for
day-to-day operation of the bank. He
will now, however, devote his main
activities to the bank’s international
operations and will remain president
of Wells Fargo Bank International

-r ’




4 S&L’ s ‘On-Line’ at LaSalle

Since 1860,
the A C T IO N B A N K
first of a ll!

First National Bank
of Denver
17th and WELTON

Northwestern Banker, December, 1966
Federal Reserve Bank of St. Louis

Four more Chicago-area savings and
loan associations have signed up to
use the new “On-Line” computerized
accounting system now being installed
for savings associations by LaSalle
National Bank, Chicago.
According to an announcement by
LaSalle National Chairman Harold
Meidell and President Milton F. Darr,
Jr., the combined total assets of the
four new institutions are in excess of
$125 million.
The associations were identified as
the $55 million General Federal Sav­
ings and Loan Association, of Cicero;
the $42 million Calumet Federal Sav­
ings and Loan Association, of Chicago;
the $15 million Franklin Savings and
Loan Association, of Chicago; and the
$14 million Highland Park Savings
and Loan Association, of Highland
Park, 111.
The bank’s computer network will
enable individual tellers of outlying
savings associations to send and re­
ceive financial information to and from
a centrally-located computer by means
of special window posting machines
hooked up to the computer by con­
ventional telephone lines.
It is being installed by the Bur­
roughs Corporation and is scheduled
to go into operation the first of the


Mails Christmas Club Checks
Security First National Bank, Los
Angeles, has mailed more than $20
million in Christmas Club checks to
its 116,265 club members throughout
southern Californa.



New Year

T he First National Bank of Chicago
Federal Reserve Bank of St. Louis

Building with Chicago and the nation since 1863 • Chicago, Illinois 60690

Northwestern Banker, December, I960


K i r b y W h y te H ea d s Hank I 0ll.ilA
Two members of Bank PRMA have
been awarded lifetime memberships
Indianapolis, was elected president of in the organization. In the associa­
Bank Public Relations and Marketing tion’s 51 year history, only 22 life­
Association at the annual convention time memberships have been awarded,
last month in Bal Harbour, Fla. His denoting the high place accorded the
one-year term began December 1. Mr. honor.
Whyte has been active in affairs of the
The two new lifetime members are
association (formerly FPRA) for many Harold W. Lewis and Orrin H. Swayze.
years and was advanced from the first
Mr. Lewis who served as president
vice presidency. Earlier this year, he of the Association in 1963-64, retired
was appointed a trustee of the Foun­ this past summer as vice president of
dation for Commercial Banks.
The First National Bank of Chicago.
Other officers elected to serve with He is now a consultant for Bank
Mr. Whyte are: First Vice President— Building and Equipment Corporation.
Edward M. Penick, president, Worthen
Mr. Swayze was president of the
Bank and Trust Co., Little Rock, Ark.; Association for the 1958-59 term. He
Second Vice President—Donald F. plans to retire as executive vice presi­
Krusell, chairman, Peoples Bank, dent of the First National Bank of
Trenton, Mich.; Treasurer—John W. Jackson, Miss., in January.
Heddens, second vice president, Con­
Mr. Swayze also received a second
tinental Illinois National Bank and
honor . . . Bank PRMA’s annual Mem­
Trust Company, Chicago (re-elected to
bership Award . . . a placque designat­
a fourth term).
ing him as high man in the yearly
Five bankers and a public relations campaign to bring new members into
consultant were elected to the board Bank PRMA. Mr. Swayze personally
of directors. They are:
sponsored 17 new members during the
T. Anderson, advertising man­ year.
ager, Union Planters National Bank,
Vernon E. Curran, vice president of
Memphis, Tenn.
First National Bank, Cincinnati, Ohio,
Alfred Bailey, vice president, Mer­has been named National Development
Chairman of the Association. In this
cantile National Bank, Dallas.
Buell G. Duncan, Jr., vice president, capacity he will spearhead the organ­
The First National Bank at Orlando, ization’s 1967 campaign for member­
ship growth.
His seven regional development
James F. Fox, president, James F.
chairmen are:
Fox, Inc., New York City.
Gerald E. Warren, vice president,
North Atlantic—Joseph J. DeVine,
National Bank of Detroit.
assistant vice president, Bankers Trust
J. Robert White, assistant vice presi­ Co., New York City. It will be Devine’s
dent, Valley National Bank, Phoenix. second term as chairman of this region.
WHYTE, vice president
of the Indiana National Bank of

Middle Atlantic—Carl L. N. Erdman,
vice president, American Bank &
Trust Co., Reading, Pa. He is cur­
rently a member of the Bank PRMA
board of directors.
South Eastern—Buell G. Duncan,
Jr., vice president, The First National
Bank at Orlando, Fla., who was also
elected to a three-year term on the
board of directors.
Mid-Central—William N. Flory, as­
sistant vice president, Harris Trust &
Savings Bank, Chicago, and another
member of the board of directors.
North Central—Albert H. Heimbach,
also a member of the board of direc­
tors and the vice president of Farmers
and Mechanics Savings Bank, Minne­
apolis, Minn.
South Central—C. Alfred Bailey, vice
president, Mercantile National Bank,
Dallas, Tex. He is a newly-elected
member of the board of directors.
Western—J. Robert White, assistant
vice president, Valley National Bank,
Phoenix, and also a newly-elected

BANK PRMA Exec. V. P. Raymond M.
Cheseldine addresses convention.







LaSalle Bank Promotions

NEW OFFICERS of Bank PRMA (1. to r.) are: Treasurer—John W. Heddens, 2nd v.p.,
Continental Illinois Natl. B&T, Chicago; 1st Vice President—Edward M. Penick, pres.,
Worthen B&T, Little Rock, Ark.; President—R. Kirby Whyte, v.p., Indiana Natl., In­
dianapolis, and 2nd Vice President—Donald F. Krusell, chmn., Peoples Bank of Tren­
ton, Mich.
Northwestern Banker, December, 1966
Federal Reserve Bank of St. Louis

Following the board of directors
meeting last month, Harold Meidell,
chairman, and Milton F. Darr, Jr.,
president, LaSalle National Bank, Chi­
cago, announced the promotion of
Herbert A. Dolowy to assistant vice
president from commercial loan offi­
cer, and the election of Philip L. Bond
as commercial loan officer.
Stanley A. Perry has joined LaSalle
National and will serve as land trust
administrator in the trust department.
Mr. Perry is a graduate of De Paul
University College of Law, and a
member of the Illinois Bar. He had
been chief trust officer with another
Chicago bank.
LaSalle directors also voted to rec­
ommend a ten per cent stock dividend
for shareholder consideration and ap­
proval at the regular annual meeting
of shareholders on January 17, 1967.

What goes on inside the mind of the customer who
waits? His mind calculates a loss column . . . his
tim e lost, his goodwill, too. Would your competitors
keep him waiting like this?
Bank B uilding’s answer for this agitated customer?
The exclusive Engineered Rear Counter that reduces
operating tim e at the te lle r window. We plan, build
and equip rear counter areas to fit functions of both
people and machines, as called for today or in the
future. We plan and install the best combination of
machines, work space, computers and other com­
ponents scientifically . . . and artfully. We consider
beauty, too, but only as it suits function.


Furthermore, as functions change, changes can be
made in the rear counter. Future expansion is made
easier because of adequate planning today. And
because Bank Building objectively plans to suit your
needs, we give close attention to the requirements
and installation of your automation equipment.
Transactions go quickly. Possibility of error is m in i­
mized. The slow burn is elim inated. The Engineered
Rear Counter . . . a product of our intim ate knowl­
edge of the work of financial institutions, the ex­
perience of half a century studying thousands of
jobs like yours. And one theme should be kept in
mind as you consider new construction or rem odel­
ing . . . we build for people . . . on both sides of
the counter.
Federal Reserve Bank of St. Louis

First Class
Permit No.
St. Louis, Mo.
BUSINESS REPLY MAIL-No postage necessary if mailed in the United States
Postage will be paid by

i/ w i


att. Mr. Earl Klein


s lo w b u m

h o w to quench it


Bank Building designs, builds and equips rear counter
areas w ith people and th e ir specific needs in m ind.
And so your customers move at a pleasant pace w h e iv
counter areas are engineered to facilitate teller functions.
1. Custom-designed to fit the teller, just as he needs
his area in order to work efficiently and with accuracy^
2. Anthropometric scale layout is engineer’s guide to deter­
mine where to place components for a particular teller’s
use. 3. Rear counter areas vary according to mixture of
accounts served. 4. Bank Building also provides the^
thoughtful little touches . .. like this “ shaver raiser.” Don’t
let a case of slow burn drive customers to your competitors.
Bank Building can definitely help you. Send for free brochure “ Banks are for people.”


Piasa S. A L. A sso c., A lto n , Illin o is

Permanent S. & L. A sso c., Evansville, Indiana




Send fo r brochure—"B a nks are fo r p e o p le ."

On or about

we contemplate :

I | new building


new fixtures


modernized quarters


high rise

I | Please send free brochure "B an k s are for people."
| | Please send a Bank Building consultant to discuss our project with us. W e understand
there is no obligation involved.



Bank name

Federal Reserve Bank of St. Louis



Permanent S. 4 L. A ssoc., Evansville, Indiana


Redemption Values Booklet
The official Table of Redemption
Values for Series A-E U. S. Savings
Bonds, which was formerly available
only to banks and other paying agents,
is now available to the general public.
Since the value of Series E Savings
Bonds shows an increase each six
months, the Table of Redemption Val­
ues is issued twice a year and shows
the exact cash value of the bond for
any given period.
The general public, legal firms and
others have found the tables invalu­
able in quickly determining the cor­
rect value of Series A-E U. S. Savings
Bonds for estate and other tax pur­
Anyone may order the 3-year sub­
scription for $1.00 (domestic mailings)
or $1.50 (foreign mailings), or may
order single issues at 20c each.
Written requests with payment in
full should be directed to the Super­
intendent of Documents, U. S. Govern­
ment Printing Office, Washington, D.
C. 20402. The redemption tables for
the January-June 1967 period will
be released in December.

Hawkeye-Security Scores
Several Record Highs
Hawkeye-Security Insurance Com­
pany recorded several new highs in
its operating results for the first nine
months ended September 30, J. S.
Tressler, president, announced at Des
Moines headquarters last month.
Net income after taxes for the ninemonth period was $408,559 compared
to a loss of $575,579 for the first nine
months of 1965.
Operating income for the company
was $111,927 compared with an op­
erating loss of $863,046 for the same
period last year. Investment income
of $443,205 represented a 70.7 per cent
gain over the first nine months of last
year when investment income was
Gross premiums written for the first
nine months of 1966 were $18,297,683,
representing an 8.5 per cent increase
compared to the same period last
The company’s pure loss ratio for
the period ended September 30 this
year was 51.6 per cent compared to
55.7 per cent. Combined loss and loss
adjustment expense was 62.4 per cent
compared to 65.7 per cent for the
same period in 1965. Combined under­
writing ratio for the first nine months
of 1966 was reduced to 96.8 per cent
from 104.2 per cent for the comparable
period last year.
Hawkeye-Security is a member of
the Financial General Corporation in­
surance group.

Federal Reserve Bank of St. Louis

" S T E E L - S T R O N G " LEAD S EALS, equipped w ith steel pins, are
die cast from non-porous M issouri virgin lead. W ill n o tc ra c k o rb re a k
w hen embossed. They are strung w ith high tensile strength im ported
hem p cord featuring w ell-w axed, tapered ends. When cord is drawn
tig h t around neck of coin bag. steel pin penetrates and anchors it­
self in folded neck o f bag. Embossing the seal embeds the cord
and provides a ta m p e r-p ro o f, secure lock. Seals are available w ith
or w ith o u t pins of varying lengths to meet all requirements.
" S T E E L - S T R O N G " S EAL PRESSES are light w eig h t (17 Ozs.) yet
provide tw ice the leverage of ordinary seal presses. Improved design
enables user — w ith one hand — to attach cord and pull until seal is
forced into folds of coin bag neck. Very little pressure is required to
make a perfect die im pression in seal. "S te e l-S tro n g " Seal presses
meet all approved requirem ents fo r sealing coin and currency bags.
"S T E E L -S T R O N G " LINEN S H IP P IN G TAG S assure safe delivery
o f valuable shipm ents. These high quality tags feature superior 8
point w eight stock and reinforced eyelets. Im printed in tw o colors
(red and black). Bank im prin t in red w ith o u t extra charge. Available
in three sizes:
No. 1 25g" x 6 V ' w ith "R e g ister" stub.
No. 2 2 % " x 6 V w ith blank stub fo r desired copy.
No. 3
x 4%" w ith o u t stub.
(Also Special Sizes & Copy)

A R O U N D M O N E Y T H E F I N E S T IS . . . .

ST e e G M st r o K G

See your dealer or write Dept. N

trade mark®

Northwestern Banker, December, 1966



(D s m A , (jJ h iq h L

(p a tm a n ^ :

Chairman, House Banking and Currency Committee,
Washington, D. C.

Your committee was rather ineffective in shaping
banking legislation in the 89th Congress, and it
appears now that yon will have an even rougher
time “ selling” some of your pet bills in the upcom­
ing 90th session.
Although the membership of the new House
Banking and Currency Committee will not be for­
mulated until it meets in January, it is certain
that its complexion will be changed due to the fact
that seven Democrats on the committee were lost
through defeats, retirements and resignation. In
the 89th Congress, Democrats controlled the com­
mittee by a majority of 22 to 11. All 11 of the
Republicans were re-elected.
You can, of course, be consoled by the fact that
all House committees will be faced with somewhat
the same problem because of the Congressional
election results, which added 47 more Republican
seats in the House.
It seems safe to predict that your committee will
not be able for at least two more years to make any
headway on reforming the Federal Reserve System
or on regulating interest rates. Perhaps with this
change and the change in the Comptroller’s office,
the banking industry may be entering a period of

CDswüu (Roq&u (BivuqpL :
Chairman, United States Steel Corporation,
Pittsburgh, Pennsylvania.

“ Automatic wage increases pegged to the costof-living index are 'engines of inflation’ which
impart a kind of perpetual motion to the whirl­
ing wage-price spiral.”

Banker, December, 1966
Federal Reserve Bank of St. Louis

This is the comment that you made in speaking
before the Graduate School of Business Student
Association at Stanford University recently.
You defined your remarks by saying:
“ The failure of government wage-price guideposts has demonstrated rather conclusively how
impotent the government is, under existing laws,
to cope with the virtually unlimited power of or­
ganized labor to raise the costs of production at
You expressed grave doubt that the temporary
suspension of business investment tax incentives
will bring any perceptible short-range relief from
the inflationary problems that now plague us.
“ There is absolute certainty,” you added that
“ it will aggravate . . . the long-range inflationary
problems that we face” to the extent that business
firms do, in fact, postpone planned investments.
You added that inflation can only be dealt with
successfully by reducing the political hazards in­
volved in curtailing excessive government expen­
ditures and the too-rapid expansion of the money
It was pointed out that since 1950, the employ­
ee’s share of total national income has risen from
64 to 70 per cent, while the proportion going to
profits has dropped from 10 to eight per cent. In
the same period, government expenditures have
more than doubled. “ Here is the real leak in the
inflation bucket,” you concluded.
Results reported in the November elections may
be partially attributed to an attempt on the part
of the voters to try to plug the leak in the bucket.
We certainly agree with you that the suspension
of the seven per cent investment tax credit will
only work a hardship on industry and agriculture
in America. Slowing reckless government spending
seems like the most sensible way to halt inflation.

Federal Reserve Bank of St. Louis




Take a giant step forward in assetswinoneof 72 prizes
in the biggest banker’s event ever!




This could well be the most
rewarding page
you ever turned...
Northwestern Banker, December, J966

On December 29, 1967 First National City Travelers Checks
will deposit twenty million interest-free dollars among the
72 winners of this competition. These deposits will remain
with the winners for a full year.

You are eligible
Any insured commercial bank, savings bank or savings and
loan association is eligible. All you do to compete is sell First
National City Travelers Checks . . . and you compete only
with institutions in your own assets category. Winners will
be determined by their sales of our checks during the con­
test period (as recorded by us) taken as a percentage of
their assets as of December 31. 1966. The higher your per­
centage, the better your chance of winning. See how large a

deposit you can win . . . check all the prizes in your contest
category as defined below.

Competition started Nov. 1, 1966
The Bank Bonus Plan will run for eleven months—from No­
vember 1, 1966 to September 29, 1967. So get started now.
Every FNCB check you sell can help you win. If you do not
already carry First National City Travelers Checks, you still
have plenty of time to get yours for a flying start.
If you need checks or additional information, write Mr. I.
Hayne Houston, First National City Travelers Checks, 399
Park Avenue, New York. New York 10022. Or phone collect
to one of the following numbers: 212-559-4960/4961/

See h ow m uch o f $20,000,000 in
interest-free deposits you can w in :
Institutions with assets of
$500,000,000 and over.

Institutions with assets of at least
$100,000,000 but less than $500,000,000.

1ST P R IZ E .................$2,000,000

1ST PRIZE . . .

2ND PRIZE..............................
3RD PRIZE..............................
4TH PRIZE..............................

2ND PRIZE.............
3RD PRIZE.............
4TH PRIZE.............




1ST P R IZ E ................$1,000,000



. . 100,000
. . 100,000
. . 100,000
. . 100,000
. . 100,000
. . 100,000
. . 100,000
. . 100,000
. . 100,000
. . 100,000

18th Prize
19th Prize
20th Prize
21st Prize
22nd Prize
23 rd Prize
24th Prize
25th Prize
26th Prize
27th Prize

Banker, December, 1966
Digitized forNorthwestern
Federal Reserve Bank of St. Louis


. 250,000
. 250,000






. 100,000



. 100,000
. 100,000
. 100,000
. 100,000
. 100,000
. 100,000
. 100,000
. 100,000


. 250,000

1ST PRIZE.................... $500,000


1, 000,000


Institutions with assets
under $50,000,000.

Institutions with assets of at least
$50,000,000 but less than $100,000,000.


. . . $ 2 ,0 0 0 ,0 0 0
............. 1,500,000

. . .50,000
. . .50,000
. . .50,000
. . .50,000
. . .50,000
. . .50,000
. . .50,000
. .. .50,000
. . .50,000
. . .50,000
. . .50,000


19th Prize . . .50,000
20th Prize . . .50,000
21st Prize . . .50,000
22nd Prize . . .50,000
23rd Prize . . .50,000
24th Prize . . .50,000
25th Prize . . .50,000
26th Prize . . .50,000
27th Prize . . .50,000
28th Prize . . .50,000
29th Prize . . .50,000


Here are details o f
First National City
Travelers Checks


1. The duration of the contest w ill be from
November 1, 1966 to September 29, 1967
and only sales concluded by the close of
b usiness on S eptem ber 29, 1967 and
booked on our ledgers In New York by the
close of business on October 4, 1967 will
be taken into consideration.
2. The contest is open to all insured com­
mercial banks, savings and loan associa­
tions and mutual savings banks which sell
FNCB Travelers Checks in the United States
and Puerto Rico. Institutions owned by
holding companies w ill compete as indi­
vid u a l C on te stan ts. F irs t N a tio n a l C ity
Bank, its subsidiaries and affiliates w ill
not be eligible.


3. The Contestants w ill be divided into four
categories based on total assets as re­
flected by their December 31, 1966 state­
ments. Prizes w ill be awarded in each cat­
egory on the basis of each Contestant's
dollar volume of FNCB Travelers Checks
sold in the United States and Puerto Rico
during the contest period, stated as a per­
centage of its total assets as reflected in
such statement. Any openings, closings,
mergers or reorganizations involving insti­
tutions occurring after December 31, 1966

which are Contestants or which desire to
be Contestants w ill be covered by special
4. The prizes w ill be non-interest bearing
deposits maintained with the winning Con­
testants from December 29, 1967 to De­
cember 31, 1968. If in the opinion of our
counsel it would be unlawful or unwise to
establish or maintain such deposits with
any winning Contestant then special ar­
rangements w ill be made in lieu thereof.
5. The determination of the winners in
each category shall be in our sole discre­
tion and our determination shall be final
giving rise to no right of action or claim
of any kind by any Contestant. There shall
be no right of any Contestant to obtain
any information concerning the standing
of any other Contestant in the contest but
a condition of any Contestant receiving
any prize w ill be that Contestant's con­
sent to the publication of his winning such
6. The operation of this contest in any
state, territory, possession, or Puerto Rico
is dependent upon its legality being up­
held in such jurisdiction.

10 reasons w h y First National City
Travelers Checks m ake good business
sense even w ithout a contest.
1 They’re profitable because of the generous commission
set-up. You keep 100% of the commission on all sales from
$10 to $50 and 90% of all above $50.
2 Your customer benefits because the checks are accepted
and available everywhere. .. over 1,000,000 places welcome
them. And—-most important—more than 20,000 worldwide
locations can give FNCB refunds on-the-spot. No other is­
suer of travelers checks provides so many.
3 They are pre-sold nationally and internationally in a power­
ful advertising campaign that tells millions of travelers and
businessmen the real advantages of FNCB travelers checks.
4 They are backed by the leader in worldwide banking, with
capital funds of almost $1.2 billion—more than any other
bank in the world.
Federal Reserve Bank of St. Louis

5 Checks are issued by a member of the Federal Deposit
Insurance Corporation.
6 They are available to you in the widest range of denomi­
7 If you wish, pre-packaged checks are available in both
“ five packs” and “ ten packs.”
8 You get hard-selling point-of-sale signs and posters pro­
moting FNCB travelers checks.
9 You get advertising and promotional aids that help you
sell your own services, imprinted with your name—and all
free of charge.
10 You can be confident your customer is getting the best
travelers check service in the world.

Northw estern


Decem ber,

196 6


Central National of Chicago Predicts:


Oritfht Farm P r ic e O u tlook :
Fu si tiff o f G en era l


HY have feeder cattle prices
stayed so high despite a rela­
tively low fed cattle market?
Answers to this question and others
of similar importance on the agricul­
tural and general economic scene were
presented at the Annual Correspond­
ents’ Conference, held during the In­
ternational Livestock Show by the
Central National Bank, Chicago.
Adopting a conference theme “Ex­
panding Profitable Banking,” Robert
E. Hamilton, senior vice president,
presided. He introduced William L.
Evans and Robert I. Logan, senior vice
presidents, who advised the group that
loan demand is expected to stay high
for at least the first six months of
1967, and that the growth curve of the
economy may “flatten out” toward an
unprecedented high level and a some­
what uneven plateau. Mr. Logan de­
scribed the period ahead as one where
a recessionary psychology could de­
velop. Mr. Evans suggested a close
adherence to sound credit judgment
and increased operating efficiencies.
Looking at “What’s Ahead in Agri­
culture,” members of the correspond­
ent banking division of Central Na­
tional (pictured on this page), dis­
cussed present and future price trends
in livestock and farm prices. Here is
a cross-section of conclusions and pre­


“Feeder cattle have remained high
compared to fat cattle because of
rather extensive cow herd reduc­
tions. Increased cattle feeding on the
west coast keeps adding to demand. A
better corn harvest than expected is
also helping to keep the feeder market
“Prices for choice steers are ex­
pected to work irregularly higher dur­
ing the first three quarters of 1967,
ranging from $27 to $32 during this
period. Some quarters are even sug­
gesting $35 cattle during the last half
of 1967. We are inclined to believe
that they will not reach this level.”
“Prices for hogs are expected to
range in the area of $20 to $24 and
with less seasonal fluctuations than
1966. Averages will be down from the
$25.50 of this year.”
“Net dairy income and dairy income
per producer should be substantially
higher than that of a year ago. The
commercial market for dairy products
appears strong.”
“Corn should be held—at least to
mid-winter. Profit prospects for the
long term are not optimistic because
winter price gains will pull some
corn from storage, easing the supply
squeeze, and corn acreage in 1967 will
likely be up, depressing late season

AG PANEL included from left: Wayne H. Obrecht, a,c.; Charles Y. Thompson, a.v.p.;
Gerald E. Leighton, a.c.; Robert J. Norrish, a.c., and Howard H. Beermann, v.p. All
are in central’s correspondent division.
Banker, December, 1966
Federal Reserve Bank of St. Louis

OUTLOOK is discussed by Morris Steph­
ens, pres., First Federal State Bank, Des
Moines, and Frank E. Bauder, pres., Cen­
tral National Bank, Chicago.

KEY SPEAKERS included Robert E.
Hamilton, sr. v.p., and Joseph J. LaRocco,
v.p. & exec, trust officer.

“ Soybean prices are expected to re­
main strong (around $2.80). Seasonal
price fluctuations may not be as great
as last year, but should more than
cover storage costs.”
New Agricultural Forces

Frank E. Bauder, president of Cen­
tral National, presided at the evening
dinner program, introducing Paul C.
Johnson, vice president and editorial
director, Prairie Farmer, Chicago. Mr.
Johnson expressed concern that there
will be a real shortage of able farm
management within 10 years. He
predicted that the large family farm
will prevail because of the problems
of farm labor utilization. He elabo­
rated by saying that if industry tries
to take over farming on a corporate
scale, this will be their worst stum­
bling block. He concluded by express­
ing the hope that we can convince
“ our nervous government” that there
will be sufficient food if in the long
run some healthy economic incentives
are provided, rather than bribery in
government payments. Guests of Cen­
tral National were entertained at the
International Horse Show and Cham­
pionship Rodeo as a finale to the day’s
activities.— End.


In a Park Avenue conference room. A rare pause for a man on the road some 26,000 miles yearly.

Most of the top 100 corporations use him. Smaller companies give him $1 billion in business.

They say this is the age of committees.
If so, one of the world’s largest banks, Chemical New York,
is bucking the age in its approach to serving corporate cus­
tomers. Our approach is the “committee of one”—and it may
be one of the reasons our resources have increased two billion
dollars in the last four years alone.
Each of our bankers serving business throughout the coun­
try is an across-the-board banking expert, rather than a lim­
ited specialist. The result: Your time with him can be spent
getting things done.
Your Chemical banker serves not just one industry, but all
Federal Reserve Bank of St. Louis

industnj in your area. (50% of our business accounts are smallto medium-size companies outside the New York area.) Fa­
miliar with businesses widely diversified in size, products, and
problems, he can cope quickly and thoroughly with yours.
If you could benefit from our kind of thorough banking
knowledge and personal attention, why not meet with our
“committee of one.” All you need do is to contact our man
serving your area, or National Divi•
sion, Chemical Bank New York Trust
iT O I T l lO c t l
Company, New York, N.Y. 10015.
The bank that works hardest for you. . 1 ^ 0 ▼▼ M O I. MV
Norffrw estern Banker, December, 1966




I wish you a merry Christmas,
And a happy New Year.
Federal Reserve Bank of St. Louis

An Old English Carol

M e m b e r Federal D e p o s it In s u r a n c e C o rp o ra tio n


Federal Reserve Bank of St. Louis


W e know California business from ste m ...

to stern.
Keeping the bloom on California’s flowers is a job
for Bank o f America. We finance seed producers,
growers and nurseries. And once the flowers are in
florist shops, they m ove out fast with BankAmeri.card® credit sales.
The same mixture o f knowhow and cold cash helps
West Coast shipping firms keep up a full head of
steam. Ship con stru ction , op era tion , and ca rg o
financing— no matter how big the need— we have

wes tern Banker, December, 1966
Federal Reserve Bank of St. Louis

the resources. With 80 banking services and almost
900 branches we can offer the financial counsel and
resources to help business grow in California. For
complete correspondent service get in touch with our
National Division, 300 Montgomery Street in San
Francisco, or 650 South Spring Street in Los Angeles.



OES your bank measure up as
a leader in Community Rela­
Do you, Mr. Bank President, person­
ally reflect a good image of your com­
Does your staff promote satisfaction
and confidence in its day to day con­
Do you, your officers, and your di­
rectors feel a joint responsibility not
only to build good will for your bank
but to generate enthusiasm for your
These are questions which merit
high priority in any well managed
bank. To have good community rela­
tions we must have good attitude.
Unless there is a sincere desire to
promote your bank and your commu­
nity, your effectiveness is nil and
probably damaging.


Need Three-Way Approach

The banker thoroughly responsive
to the needs of his community must
have at least a three-way approach to
do a good job. He must first be alert
to recognize opportunities and estab­
lish good follow up. Secondly, he
must be aware, in a specific manner,
of the advantages and disadvantages
of his community. Third, he must be
aggressive enough to attract interest
in a highly competitive field.
Not only must you as a civic leader
be broadly knowledgeable about all
facets of your city as a potential site
for industry, you must be articulate
and persuasive. To those in your city
who are charged with the responsibil­

ff Off ff©
1 ©ff E ta tv /ff

0 'om m u n it y
R e la t io n s ?

ity of attracting such business, your
help as a banker can be invaluable.
This help must be offered with a cer­
tain amount of restraint to distinguish
from purely selfish motives.

Written Especially for

Help Find NeAv Leaders

Perhaps the biggest contribution
that we as bankers can make in our
communities is to identify and help
motivate capable people to accept
leadership responsibility. Because of
our unique position of having wide
contacts with many people, we are in
an ideal position to evaluate interests
and abilities of such individuals. There
is always a place in the civic or cul­
tural structure of a community—in
fact, often a crying need—for men
willing to accept such challenge.
Finding the right slot for the right
man is one of the keys to good com­
munity relations. It’s an area where
bankers can be effective. Surely,
many of us have had opportunity to
recommend someone who seemed par­
ticularly suited for a specific job.

Austin State Bank
Austin, Minnesota

What a thrill to have such an individ­
ual respond with genuine enthusi­
asm. Also what an opportunity for
him to respond to the challenge and
to build his own image as a leader.
Where Leadership Is Needed

ONE ANNUAL PROJECT that always draws much favorable comment and partici­
pation by the community in upper midwest states is “ June Dairy Month” which is
promoted by numerous banks. Photo above shows portion of the crowd at Austin State
Bank’s last observance.
Federal Reserve Bank of St. Louis

In what areas do we make use of
our unique position to attract such
people? A good place to start is in
city, county or any form of local gov­
ernment. More and more it becomes
apparent we should activate ourselves
increasingly in the affairs of govern­
ment. Let us accept this responsibility
as one of the primary ones of good
community relations. Let us have
good rapport with our elected officials
and help them make right decisions.
Belated criticisms are not warranted
if we “hide our heads in the sand”
when issues are discussed.
Fund campaigns, Chamber of Com­
merce promotions, Industrial DevelopCOMMUNITY RELATIONS . . .

(Turn to page 80, please)
Northwestern Banker, December, 1966



lir is it a a s f d r a s

First National City Dolls.

N KEEPING with the genuine spir­
it of Christmas, banks throughout
the nation, despite their myriad
ways of observing the holiday season,
have one theme in common—giving.
Practically all of them express this in
a material way through gifts to charit­
able organizations or directly to needy
But many others add that extra fes­
tive touch that not only produces a
holiday “ lift” to the spirits of staff
and customers, but also ties in with
the practical aspect of the banking
business. Numerous banks now an­
nounce to their customers that $1, or
some stated sum, will be donated to
local churches in the name of custom­
ers of the banks if they will just sign
a card in the bank lobby during the
Christmas season. The money given


by the bank is sent to the churches
designated on the cards by the custom­
Many have special window displays
and lobby decorations. Here are some
yearly Christmas programs that are
typical of what is done by many banks:
* * *
First National City Bank, New
York—For many years the staff has

participated in a “dress-the-doll” con­
test. These dolls are then given, along
with other toys purchased by the
bank, to orphanages throughout the
city at Christmas time. In the accom­
panying photo, pert Jane Cascio, a sec­
retary at FNCB, holds the doll she
dressed last Christmas season like
Mary Poppins to win first place in the
contest. Besides the 400 entries from
all over the bank, more than 2,000

other toys were distributed. In the
15 years since the program started at
the bank, more than 20,000 dolls and
toys have thus been given to orphans
in metropolitan New York during the
Holy Season.
* * =t=
First National Bank and Trust Com­
pany, Tulsa — Season’s greetings for

employees and customers are sung
during Christmas week by the pretty
bank pages pictured here. They wear
special Christmas red uniforms for the
holidays. The carols were an “extra”
attraction thought up by the pages
themselves, who traditionally have dis­
tributed candy canes to customers at
Christmas time. Another traditional
feature at the bank is picture-taking
of youngsters with Santa Claus in the
bank lobby during the week preceding
Bank of the Southwest, Houston—

Page Girl Chorus, First National Bank & Trust, Tulsa.
Digitized Northwestern
for FRASER Banker, December, 1966
Federal Reserve Bank of St. Louis

For the 11th consecutive year, the
bank’s Christmas kitchen will be the
mecca for customers and other visitors
during the Yuletide holidays. Tradi­
tionally, hot gingerbread and wassail
are served all comers to the banking
lobby where the striking Christmas
tableaux is on display. It is estimated
that more than a half million holiday
visitors have been welcomed to this
novel exhibit, which is an authentic
replica of a typical American home as
it appeared at the turn of the century.
Originated in 1956, the “family” is
composed of bank employees wearing
period dress who occupy the kitchen
and serve refreshments each season.
They will do the same again this year
from December 19 through December
23. Mrs. Ruby Goodson is the senior
member of the family.” Now retired


for Bank Programs
Harris Trust Choral Group.

from the bank, she returns each year
to portray “Grandma,” the role she
created in 1956.
In addition to the 17-foot square
kitchen display the bank will have, for
the seventh consecutive year, its cus­
tom-made Nativity scene with lifesized figures.
* * *
Harris Trust and Savings Bank, Chi­
cago — The 65-voice employee chorus

assembles near a 34-foot tree in the
main lobby to sing traditional carols
on each of the three days preceding
Christmas. Directed by William Kuss,
pro secretary in the trust department,
the group last Christmas received a
special treat when a CBS-TV camera
crew arrived to film them in action.
The sound film was later aired on Chi­
cago TV news programs just before
Christmas day.
* * *

found such items as checking accounts
with fashion-styled checkbook covers,
high-fashion combination billfold and
checkbook, alphabetical name and ad­
dress book, trust fund as gift to chil­
dren or grandchildren, and safe de­
posit boxes. Among the non-banking
service items are such attractive gifts
as uncirculated coins displayed in lucite blocks, Kennedy half-dollar key
chains, table lighter with discontinued
coins, coin-radio bank, and similar
money-related gifts.
Results showed that total cash pur­
chases at the “Christmas Store” almost
offset expenses of operating it; in fact,
total cost for the entire promotion was

less than 10 per cent of the gross cash
turnover. In addition, an average of
three or four inquiries per day regard­
ing bank services were passed on to
Family Banking Center officers, most
of which resulted in new business. In
effect, the net cost of the immediate
promotion resulted in new business
that has more than offset the cash out­
Commerce Trust employees also dec­
orate a Christmas tree with hand­
made Christmas stockings made for
the children at Mercy Hospital. These
stockings are filled, and extra toys also
are given to the children at Christ­

Commerce Trust Company, Kansas
City — In addition to the extensive

Christmas displays throughout its ex­
ecutive offices and the Tower building,
the bank initiated last year another
idea to tie in with Yuletide that offers
practical financial ideas as Christmas
gifts. Called the “Commerce Trust
Christmas Store,” it offers customers
a wide selection of gifts connected
with money or banking services. The
program is being followed again this
A two-color direct mail folder was
enclosed with statements starting in
late November. The “Christmas Store”
is located in the Family .Banking Cen­
ter, the latter being maintained by
Commerce Trust the year-round as a
regular service on the Tower ground
In the “ Christmas Store” can be
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r , December, Ì 9 6 6


HAWAIIAN HOLIDAY tour group is shown on arrival at
Honolulu International Airport. The 10-clay tour was sponsored

by the NORTHWESTERN BANKER in conjunction with Lincoin Tour & Travel, Lincoln, Nebr., after the ABA Convention.

H u n kers Fìnti ’ ’A loh a S p irit”
P rev a ils on

HatraT our

of the n o r t h w e s t e r n
recent ABA Post-Con­
vention Holiday Tour, agree that the
Hawaiian Islands have every ingredi­
ent for the ideal vacation.
Starting from San Francisco’s Inter­
national Airport, the group boarded a
Jet for Honolulu and the start of a
long-remembered 10-day tour through
the tropical islands that make up our
49th state.
A major share of the success of the


em bers

a n k e r ’s

HAT CONTEST held by the tour group
was won by Mrs. Fred Keepf of Hampton,
Iowa, and Mrs. G-len. Waltner of Freeman,
South Dakota.
rth w e s te rn B anker, December, 1966
Digitized for
Federal Reserve Bank of St. Louis

tour was attributed to the careful ad­
vance planning made by Lincoln Tour
and Travel, owned and operated by
the First National Bank & Trust Com­
pany, Lincoln, Neb., and the personal
guide services of its vice president,
Van C. Duling. The friendly Aloha
spirit shown by all the native sight­
seeing guides also helped to make the
trip a most enjoyable one.
Headquartering in Oahu’s famed Ha­
waiian Village Hotel, bankers and
their wives enjoyed four days discov­
ering sun-warmed surf and sand, mistveiled mountains and lush green val­
leys. Trips through pineapple and
sugar cane fields, tours to Pearl Har­
bor Punch Bowl National Cemetery
and world-renowned Nuuanu Pali were
just a few of the scenic areas covered
on the main island. Free time was
available for nightclub trips and shop­
ping tours.
Leaving Honolulu behind (after
picking up considerable extra baggage
through souvenirs), the group flew to
the Island of Maui for an all-day tour,
stopping for lunch in the beautiful
Sheraton Maui Hotel. Towards eve­
ning, a short flight was made from

Maui to Hilo on the big Island of Ha­
waii, where headquarters were estab­
lished at the Hilo Bay Hotel.
Touring the big Island of Hawaii
the following day, the group stopped
for lunch at the famed Volcano House,
continued through the spectacular
Rainbow Falls area and the Orchid
Nurseries. Proceeding to Kona, ac­
commodations were arranged at the
King Kamehameha Hotel. The next
day, an extensive tour was made
through the ancient homeland of the
Polynesian chiefs in the Kona area.
The group gathered in late afternoon
for a flight to the Garden Island of
Kauai, where reservations were wait­
ing at the world famous Coco Palms
Hotel. Trips on Kauai included a boat
ride up the Wailua river to the dense

MOUNTAIN VIEW on Oahu is “ snapped”
by T. C, Aarestad, pres., First Natl. Bk.,
Denison, Iowa.

Fern Grotto, a visit to the 4,000-foot
Kalalau Lookout, and a tour to the
scenic spot where “ South Pacific” was
Members of the tour included:
Mr. and Mrs. T. C. Aarestad, First
National Bank, Denison, Iowa.
Mr. and Mrs. Martin Ehlers, Citizens
State Bank, Redwood Falls, Minn.
Mr. and Mrs. Rex Galles, Citizens
State Bank, Redwood Falls, Minn.
Mr. and Mrs. Reid Giese, First Na­
tional Bank, Sumner, Iowa.
Mr. and Mrs. Millard Homberg, Citi­
zens State Bank, Redwood Falls, Minn.
Mr. and Mrs. Fred Keepf, First Na­
tional Bank, Hampton, Iowa.
Mr. and Mrs. Paul Manning, Plaza
State Bank, Des Moines, Iowa.
Mr. and Mrs. Ray Miller, Capital
City State Bank, Des Moines, Iowa.
Mr. and Mrs. Louis F. Novak, Bank
of Brainard, Brainard, Neb.
Herman J. Mohr, Lincoln, Neb.
Mr. and Mrs. Max Schneider, First
National Bank & Trust Company, Lin­
coln, Neb.
Mr. and Mrs. Glen Waltner, First
National Bank, Freeman, S. D.
Charles Walsh, Jr., West Burlington
Savings Bank, West Burlington, Iowa.
Mr. and Mrs. Ralph M. Wilson, Se­
curity Savings Bank, Marshalltown,
Mr. and Mrs. Malcolm Freeland,
Northwestern Banker, Des Moines,
Van C. Duling, Lincoln Tour &
Travel, Lincoln, Neb.

BANK ON MAUI is inspected by T. C.
Aarestad of Denison, Iowa, and Paul Man­
ning of Des Moines.
Federal Reserve Bank of St. Louis

TRAVEL PLANS are discussed by Paul
Manning, Des Moines, and Fred Pacheco,
tour guide on island of Hawaii.

FRIENDLY SPIRIT prevailed as Max
Schneider, v.p. First Natl. Bk., Lincoln,
and wife, Eleanor, pose with native tour
guide on island of Maui.

UNIQUE NIGHT SPOT is inspected by
Reid C. Giese, v.p. & cash., First Natl. Bk.,
Sumner, Iowa, and wife on island of Maui.

NATIVE “STATUARY” is admired by
Ralph Wilson, pres., Security Sav. Bk.,
Marshalltown, Iowa, on island of Hawaii.

PRIZE CATCH is displayed by Louis No­
vak, cash., Bank of Brainard, Nebr., and
wife, after deep sea fishing at Oahu.

lers, dir., Citizens S t Bk., Redwood Falls,
Minn., won prize for the tallest person
on the tour, and Mrs. Glen Waltner, Free­
man, S.D., won equal honors for being
“ somewhat shorter.”
N o rth w e s te rn Banker, December. J966



E gg P ro d u ctio n —

From "IV ’i i


E ditor’s N ote: N ot so m any yea rs
ago, egg prod u ction teas con sid ered by
m any to be strictly a sideline fo r the
farm w ife so she could earn “ pin
m on ey.”
The accom panying article
sh ow s the trem en d ou s transition that
has taken place, m ovin g m od ern egg
prod u ction to n ew high lev els through
a highly su ccessfu f scientific approach
that m eans big m o n ey fo r farm ers us­
ing this m ethod.

T STARTED in the winter of 196263—and it’s still going strong. The
central figure is Melvin Johnson,
Alta Vista egg dealer, or to use a fast­
fading terminology, “local produce
Early in 1963 two farmers in Minne­
sota, Floyd Withers of Jackson, and
Henry Soost, Jr., of Wells, invited the
public to “ Open House” at their


□ BUILT IN 1964

chicken house. That kind of invita­
tion was about as revolutionary in the
middle west as were those laying
houses at that time.
Mr. Johnson organized a caravan of
local farmers to go to both open house
events. In both cases they saw hun­
dreds of layers in cages—3,300 at Jackson and 4,200 at Wells—in semi-auto­
mated “Hy-Line Midwest Cage Layer
Units.” They saw farmers, farm wives
and high school-age children doing all
the “chicken chores” at the rate of
less than an hour per day per one
thousand birds. They saw records
that gave convincing evidence that
this new concept of egg production
was tailor-made as a profit project for
midwestern farm families.
And several of Mr. Johnson’s friends
and neighbors saw one thing more.
They saw a place for this type of unit
on their own farms.



THIS CHART shows location of installations made around the Mason City area alone
in past three years.
N o r th w e s te r n B anker, D e c e m b e r, 1966
Federal Reserve Bank of St. Louis

During the summer of 1963, three
Alta Vista “pioneers” put up Midwest
Cage Layer Units for 5,040 birds each.
Leroy Hilsman and Dale Hofman
housed their 20-week old flocks in
early August, and Vincent Schwickerath followed suit on November 4.
Although none of the three con­
sidered himself to be enough of a
poultry “specialist” to confidently
manage 5,000 layers alone, all three
launched their projects with confi­
dence that their management was in
capable hands. Hy-Cross Chick Com­
pany, Mason City, put up the units
and delivered the ready-to-lay pullets.
Rather than ending with delivery of
the pullets, Hy-Cross’s activities were
just getting under way at that point.
Stan Witham, trained and experienced
Hy-Cross serviceman, kept in con­
stant, close touch with all three egg
producers, watching with a practiced
eye as the birds completed their
growth; came into production; and
continued through the year. Mr.
Witham recommended management
changes as their needs could be antici­
pated; supplying the skills not previ­
ously needed by the new owners of
the expanded egg production units.
In addition to management guid­
ance, Hy-Cross Chick Company and
Melvin Johnson also assisted with a
highly practical record-keeping serv­
ice and a unique accounting system.
Both of these services have helped
the producers not only to know where
they stand at any time—performance
wise and financially—but also to set
dependable projections for basing fu­
ture steps.
Hy-Cross also put up two other
units in 1963 outside the Alta Vista
trade area, both somewhat smaller
than 5,000 birds. The first-cycle rec­
ords of the three units justified the
confident expectations of many close

(Turn to page 99, please)





WORKSHOP SESSIONS—key part of the Ag Credit Conference program. Shown at
left is the workshop on Farm Credit Competition in session. Leading the discussion are
Ted Axton, pres., Lafayette Savings Bk., Lafayette, Ind., and Tom R. Smith, pres.,
First Natl. Bk. of Perry, Iowa. Shown at right are J. Francis Kennedy, pres., First
Natl., New Hampton, Iowa, and Paul W. Gandrud, exec, v.p., Swift County Bk., Benson,
Minn. They led the discussion in the Community Development workshop.

At Ag Credit Conference

research for International Minerals
and Chemical Corporation.
Dr. Davan, in prefacing his address,
pointed out that, “ The major point I
want you to keep in mind is the in­
creasing complexity of farming and
that the decisions farmers will make
in the future will become increasingly
critical, complex and dependent on the
business decisions of farm related in­
dustry. He will need more help plan­
ning his farm production in the future
than he has needed in the past.
“The big questions are: Where will
he seek and obtain this help? How do
we in the agricultural input industries
profitably fit into these dynamic
After establishing rather dramat­
ically the changes occurring in agri­
culture, Dr. Davan closed by saying,
“The banks that lose their business
will be those that continue with the
traditional approaches—that is, offer­
ing credit only on assets or full re­
course paper. There is really small
future in the world today for this
kind of farm banking, just as there is
small future for the marginal farmer.”
* * *
Another highlight of the conference
was a panel discussion entitled “ Speak­
ing Frankly.” Moderated by Fred
Bailey, Jr.,Farm Communications, Inc.,
Washington, D. C., the panel featured
two farmers and two bankers.
Members of the panel were Douglas
F. Graves, vice president, First Na­
tional Bank of Freport, 111.; Robert
L. Voss, vice president, First National
Bank, Fremont, Neb.; Charles Berg,
farmer from Chokio, Minn., and Wil­
liam R. Rothenberger, farmer from
Frankfort, Ind.
And speak frankly they did as the
following quotations will indicate:
I f y o u are going to k eep up to the

K eeord
X u m b er
o f Ha niters
H ea r Farm Finaneiaff Id ea s
Business Manager

EMO to the American Bankers As­
Under the leadership of Ted Brown,
sociation Agricultural C redit president of the Security State Bank
Committee: “Bring the Annual Ag
of Sterling, Colo., and chairman of
Credit Conference to the midwest for the ABA Ag Credit Committee, an
record attendance.”
array of agricultural bankers, farmers
That was the formula that worked and ag business executives discussed
last month in Minneapolis when at­ the problems facing today’s Ag lenders.
tendance at the ABA sponsored Ag
Also featured on the program was
Credit Conference stood at a record Jack Conn, ABA president and chair­
level of 702 registrants.
man of the Fidelity National Bank &
And it was a working session in the Trust Company, Oklahoma City, Okla.
=t= * *
true sense of the word as meeting
rooms filled with delegates for the
Setting the stage for the day and a
first speakers and remained that way half conference was Dr. C. F. Davan,
until completion of the sessions.
Jr., manager of agricultural market



(Turn to page 58, please)

THE “SPEAKING FRANKLY” PANEL. Shown here are the panel members who spoke frankly regarding ag credit problems facing
today’s country banker. From LEFT: Charles Berg, Chokio, Minnesota, farmer; Robert L. Voss, v.p., First Natl., Fremont, Nebr.;
Fred Bailey, Jr., moderator, Farm Communications, Inc., Washington, D. C.; William R. Rothenberger, Frankfort, Ind., farmer, and
Douglas F. Graves, v.p., First Natl., Freeport, 111.
Federal Reserve Bank of St. Louis

N o r th w e s te r n B anker, D e c e m b e r, 1966


New Him en s ion s
of Houli

LTHOUGH there has been a rise in commercial
bank failures over the last few years, a convincing
argument can be made that (at long last) banking
supervision is today moving in the direction of new di­
mensions of vitality, cooperation and strength. There is
still much to be done in these areas.
The improvement is increasingly becoming true at the
federal supervisory level and at the state supervisory
level. Unfortunately, a small number of state supervis­
ory staffs must be excluded from this generalization.


Must Rebut Public Apprehension

In the face of the growing number and larger financial
amounts involved in bank failures it is especially impor­
tant that commercial bankers recognize and rebut public
apprehension or loss of confidence in the safety of their
deposits, including those amounts which exceed the new
$15,000 ceiling insured by the Federal Deposit Insurance
The general publics’ attitude is being shaped today by
well-publicized, over-dramatized incidents such as the
mid-October failure of the Public Bank of Detroit. Blown
out of context, because of news value, it gives an unfortu­
nately biased view of the strength and solvency of our
banks and our financial system.
A review of some recent developments may help bank­
ers appreciate how the public could draw incorrect con­
clusions and help them recognize the obligation the in­
dustry has to put bank security and the public interest
in proper light.
San Francisco National Failure

Publicity about the San Francisco National Bank’s
failure properly raised questions in the public mind
as to coordination between the various supervisory agen­
cies. Even more disturbing and misunderstood was the
technical role and legal interpretation of the sizable pro­
portion of its liabilities in the form of brokered certificates
of deposits. The man in the street simply does not have
the banking background to appreciate the legal subtleties
involved in the interpretation of Regulation Q. There
was considerable, but somewhat misleading, publicity on
h w e s te r n B anker, D e c e m b e r, Ì 966
Federal Reserve Bank of St. Louis




mum x ¿ S É ?jSm

Hill Professor of
Hank Management
University of Missouri
Colum bia, Missouri

the lack of coordination of supervisory authorities. There
it little awareness by the public that from that failure,
steps along the line of improved coordination have been
instituted. These steps, unfortunately, do not immedi­
ately become obvious and take time to be fully imple­
mented and operational.
Looking back on the SFNB failure it would appear that
some well-intentioned but misguided judgment decisions
were made by supervisors. Logic tells us that super­
visors either were aware of a substantial dollar volume of
substandard loans which should have been written down
on published statements and that they tolerated the mis­
representation of these figures to the public or that their
professional capacity as supervisors was so poor that
they could not properly judge the quality of the loan port­
folio of the bank.
If the latter were true why bother with examinations
of loan portfolios at all? I suspect the decision was
reached by supervisors that possible rehabilitation of
SFNB would be impeded if its true state was known by
the public. This type of well intentioned value judgment
when observed by the public, unfortunately erodes the
very credibility of the supervisors. It also prevents the
efficient allocation of resources in a free capitalistic so­
ciety and defeats itself.
From their experiences with SFNB failure two of our
federal supervising agencies have learned some hard les­
Public Bank of Detroit Failure

Two other supervising agencies, one state, the other
federal, are learning some additional lessons the
hard way from the failure of the Public Bank of Detroit.
According to responsible sources the immediate techni­
cal reason for PB of D being forced into receivership was
the controversy over its accounting. PB of D apparently
did not wish to write down its loan portfolio even though
a national firm of Certified Public Accountants found that
about one out of every five installment loans were clelinNEW DIMENSIONS . . .

(Turn to page 46, please)





'■ *;, I

The Men from the City are always ready to
provide that extra service—above and beyond
your normal requirements. When necessary
we can move as fast as Santa does on Christ­
mas Eve. We like playing Santa Claus for
our customers . . . now during the holiday
rush . . . and all through the year.

The men...and the women
. . . at the City wish you a
Merry Christmas. . . and
a Prosperous New Year

Its great to grow with the
Federal Reserve Bank of St. Louis

... tire one Kansas City bank that has everything
N o r th w e s te r n B anker, D e c e m b e r, 7966


THESE senior officers form the executive management team of First National Bank of Chicago.

At First National, Chicago, Conference

1 9 6 7 ISnsiness W ill Slacken

OUR nationally prominent econo­
mists and financial leaders stated
in Chicago last month that they
expect to see a distinct slackening in
the economy in 1967 and possibly a re­
cession. One was definitely opposed
to a 1967 tax increase, while the other
three said they would reluctantly go
along with one, but generally on a
surcharge basis with expiration of it
at the end of 1967.
Their views were made known to
more than 1,200 bankers attending the
20th Annual Conference of Bank Cor­
respondents sponsored by The First
National Bank of Chicago. They pre­
sented a symposium at the concluding
day’s noon luncheon on the subject,
“What Should Monetary and Fiscal
Policy Be in the Present Situation?”
Most generally, their remarks could
be interpreted to mean “We know
what monetary policy is, and it’s been
overworked and very stringent. But
what kind of fiscal policy does the gov­
ernment have?” They delved into the
causes and results of disastrous infla­
tion that overtook the economy in 1966


while driving the economy to the
brink of a crisis.
Their analysis of monetary and fis­
cal policy of the government followed
one and one-half days of the First Na­
tional’s well-established and success­
ful pattern of three rotating panels of
three speakers, and an industry-by-industry report from the heads of First
National’s 12 leading divisions.
These 12 men look for a continued
good level of economic activity next
year, but not at the pace of the past 24
months. Definite caution signposts
were noted in steel production, based
on reduced auto sales and heavy appli­
ance manufacturing; in construction,
where housing builders have been tak­
ing it on the chin due to the tight
mortgage money market; and in farm­
ing, where a continued relatively high
level of farm income will be offset by
cost rises that continue to climb rap­
Those panelists discussing the “Out­
look” and “ Investments” made these
Bennett L. Hauenstein, assistant

vice president for agriculture, Division
F, First National Bank of Chicago:
While farmers continue to increase
their production at a 7 per cent annual
rate, double that of factory workers,
food costs the family less of its dispos­
able income than ever before. Farm­
ers are doing those things productionwise, and management-wise (control of
herds and weights), but are running a
treadmill with costs. “ In the first quar­
ter of 1967—expect fat cattle prices to
be up, with a $30 Chicago price by next
Martin R. Gainsbrugh, adjunct pro­
fessor of economics, Graduate School
of Business Administration, New York
University: In 1967 we can expect
some buoyancy from: 1. Substantial
wage hikes. 2. Minimum wage in­
creases which will embrace an addi­
tional 4 million workers. 3. Social Se­
curity increases, which are being ad­
vocated by both parties. 4. Heightened
demand for jobs as more people reach
age 20. On the deficit side will be:
1. Capital expansion boom tapering
off. 2. Slackening of demand in autos.
3. Slackening of funds. 4. Lower prof­
its. 5. Curtailed production in some
areas. All of this will ease fiscal and
monetary pressure, allowing the na­
tion to build through consolidation in
Rudolph E. Palluck, vice president,
First National Bank of Chicago: Nine­
teen sixty-seven still looks favorable,
even with Gross National Product ad­
vancing at a slower rate. It will be
more important than ever to adhere to
basic credit principles, demanding that

SPEAKERS at First National of Chicago Conference included, left to right in each photo: LEFT— Officers of the First National
who formed the “ Question and Answer” panel. Seated: Nicholas J. DeLeonardis, a.c.; Howard B. Bouton, v.p.,; Robert K. Wilmouth,
v.p. Standing: Arthur F. Stake, v.p.; Joseph C. Fenner, v.p., and Richard L. Thomas, v.p. RIGHT- Rudolph E. Palluck, Nevin G.
Bowser, George B. Wendt and Tilford C. Gaines, all four v.p.’s of the host bank.
N o r th w e s te r n B anker, D e c e m b e r, 1966
Federal Reserve Bank of St. Louis





That’s the value of the inventories we have
field warehoused, and against which we have
issued our warehouse receipts without one
blemish on the record of fulfilling our obli­
gations to lenders.
The pioneer in field warehousing, we are
also the most modern: Instant electronic data
processing from our IBM center to you; up to

10 million dollars of liability and fidelity
coverage at any one location.
Perhaps this does suggest something! Like
promoting profitable inventory loans to pre­
ferred status by relying on our warehouse
receipts. If you agree, we’ll happily supply
all the details on our complete collateral
protection service. We’re easy to reach with
offices in all principal cities.

T h e L a w r e n c e Co m pan y


200 Park Avenue, NEW YORK • 100 North La Salle Street, CHICAGO • 37 Drumm Street, SAN FRANCISCO
Federal Reserve Bank of St. Louis

N o r th w e s te r n B anker, D e c e m b e r, 1966

loan customers follow good account­
ing and budgeting procedures.
George B. Wendt, vice president,
First National Bank of Chicago: Po­
tential encroachments are being made
on tax exempt issues. The courts and
legislators are looking with disfavor
on industrial revenue financing. Some
states with interest rate ceilings are
finding revenue issues in their states
going unbid. Federal aid to schools
has affected issuance of revenue bonds
for schools; this aid has increased from
$4.1 billion in 1957 to $14.6 billion now.
The low 3.8 per cent interest rate at­
tracts schools to federal loans and
takes them out of the municipal issues
market. This is a threat to the sur­
vival of many municipal firms. The
possibility of a tax increase and other
circumstances could have a favorable
effect on the municipal market.
Tilford C. Gaines, vice president,
First National Bank of Chicago: The
interest rate outlook: 1. We are in
for a long period of time at higher
rates. They will drift lower in the im­
mediate future, but gradually go up,
with foreseeable high corporate loan
demand and municipal financing needs.
2. In the short term market we have
a unique situation. If the Federal Re­
serve eases bank credit, to that extent
we could be in trouble on our balance
of payments. I believe the Federal
Reserve will maintain high rates to
attract funds from outside to offset the
balance of payments. 3. I think the
banking system will run under tight
restrictions by the Fed for a long pe­
riod of time, so analyze first and well
your liquidity requirements for an ex­
tended period of time.
Henry A. Kissinger, professor of
government at Harvard University,
gave an enlightening, fascinating ap­
praisal of United States commitments
in Viet Nam, posing the problems en­
countered by the military as two wars

—military (in the traditional sense)
and guerrilla, as well as rebuilding a
government and rebuilding an econ­
omy in the countryside. The essence
of his talk was that American par­
ticipation in Viet Nam is vital, and to
withdraw before the objectives are
achieved would be fatal—for southeast
Asia and for the Free World.
The final afternoon, a group of offi­
cers of The First National Bank con­
ducted a question and answer period
among several hundred bankers on
m a tters pertaining to operations,
trusts, and other daily banking duties.
The four men who participated in
the final luncheon panel were Milton
Friedman. Paul Snowden Russell, Dis­
tinguished Service Professor of Eco­
nomics, The University of Chicago;
Paul W. McCracken, Edmund Ezra
Day, University Professor of Business
Administration, The University of
Michigan; Charls E. Walker, executive
vice president, The American Bankers
Association, and C. Richard Youngdahl, president, Aubrey G. Lanston &
Company, Inc.
Mr. Friedman said: If the Federal
Reserve System continues its tight
money policy, it will lead to lower in­
terest rates. What should monetary
policy be? 1 would say a middle of
the road policy between the 9 per cent
expansion rate of 1965 and the tight
program of 3 per cent now—the best
is 5 per cent. We should move there
and stay there. On fiscal policy, I op­
pose a tax increase. It will mean more
government spending. The record
shows that Congress will spend what­
ever the taxes raise, and a little more.
I favor reducing taxes as the only
way to force Congress and the gov­
ernment to hold down spending. The
major increase in the budget is not
in defense, but in non-defense spend­
Mr. McCracken said: Our greatest

lesson to learn is that government eco­
nomic policy itself tends to have more
instability than any other factor. We
have had both fiscal and monetary pol­
icies the past 14 months doing exactly
that. The patient needed a tranquil­
izer and instead was given a pep pill!
We need a January, 1967, budget with
a more realistic base for making judg­
ment than the January, 1966, mess
which estimated defense spending of
$56.5 billion for 1967, but already
reached that figure before getting to
the fiscal year — and missed it by
spending of $12-$15 billion higher. For
1967 the defense spending looks to be
$10-$12 billion higher, Social Security
is almost a certainty to add a $3 billion
outlay, other increases appear to be
$3 billion; so increased budgeting will
be $16-$17 billion. Present revenue
measures would not produce more
than $10-$11 billion. There are several good factors arguing against a tax
increase, but I think we should have
sonic tax increase to pick up the ex­
cess of budget over revenue.
Mr. Walker said: F isca l p o lic y
should strengthen and monetary pol­
icy should ease. I still think we’re
headed for trouble because of what’s
been done. Monetary policy had to
bear the brunt of restraint. As long
as the Viet Nam war continues, the
inflationary trend will continue in
1967. I would plan for a budget surplus of at least $1 billion by cutting
non-defense spending. If a deficit is
apparent, I would have a tax increase
to cover it and to expire December 31,
1967. I do not believe a surcharge tax
increase of a temporary nature would
increase (government) spending, be­
cause it would cut in only after the
budget is announced, and would be
temporary and out after one year.

(Turn to page 56, please)

SPEAKERS at First National of Chicago Conference, left to right, are: Bennett L. Hauenstein, a.v.p., and Jack W. Hallberg, v.p.,
both with the host bank; James L. Hayes, dean, School of Business Administration, Duquesne University; Martin R. Gainsbrugh,
adjunct professor, Graduate School of Business Administration, New York University; James C. Downs, Jr., climn., Real Estate
Research Corp., and climn., Bank of Oak Brook, 111., and Richard E. Kelley, v.p., First National of Chicago.
r th w e s te r n B anker, D e c e m b e r, 1966
Digitized for
Federal Reserve Bank of St. Louis












How banks are easing
check conversion
work and expense
through the DeLuxe
Merchandising Program.

Most bankers agree that a change­
over to full automation is a tre­
mendous undertaking. It requires
thought, planning and serious
consideration of the cost factors
involved. It’s hard to do if you’ve
never done it before, but there is
some satisfaction in the knowledge
that, once accom plished, it will
never have to be done again.
Here is where DeLuxe has helped
hundreds of banks with a planned
conversion program based upon
bank check merchandising to re­
duce out-of-pocket expense. Our rep­
resentatives will help you develop
flow charts outlining an orderly
and economical method of conver­

sion to MICR account num ber
checks for all customers . . . and
they will provide the know-how for
com plete im plem entation o f the
In addition, we provide file and
survey cards, address correction
forms, customer notification letters
and envelopes, advertising and
sales aids . . . all at no cost to you.
This is a tested 100% Imprint check
program that will improve bankcustomer relations and result in a
successful conversion for you as it
has for others. If you’re about to
start planning y o u r program, please
call us and let us demonstrate how
effective our plan can be.




IN C .

Federal Reserve Bank of St. Louis

Northwestern B a n k e r , D e c e m b e r , 1 9 6 6


LUNCHEON SPEAKER Dr. Paul S. Nadler (center) is flanked by John B. Mitchell
(left), pres., and James P. Hickock, chmn., of the host bank.

At First National, St. Louis Conference

Itan h ers Chouse W in n ers in
tteeen t N a tion a l E lection s
A poll of 750 bankers from 18 states
attending the 20th Annual Conference
of Correspondents sponsored by the
First National Bank in St. Louis,
proved to be completely accurate in
forecasting winners in the November
election. They correctly chose the
winning Governors in six key states
and winning U. S. Senators in two
They made the following choices in
the races for Governor:
ALABAMA: 81 per cent chose Mrs.
George C. Wallace, Democrat, over
James D. Martin, Republican.
ARKANSAS: 75 per cent chose
W in th r o p Rockefeller, Republican,
over James D. Johnson, Democrat.
CALIFORNIA: 77 per cent chose
Ronald Reagan, Republican, over Ed­
mund G. (Pat) Brown, Democrat.
GEORGIA: 63 per cent chose Lester
G. Maddox, Democrat, over Howard

r th w e s te r n B anker, D e c e m b e r, 1966
Digitized for
Federal Reserve Bank of St. Louis

Calloway, Republican. (Being con­
tested in court since neither man won
a majority vote.)
MICHIGAN: 97 per cent chose
George Romney, Republican, over
Zolton Ferency, Democrat.
NEW YORK: 88 per cent chose Nel­
son Rockefeller, Republican, over
Frank O’Connor, Democrat, who was
chosen by eight per cent, and Frank­
lin D. Roosevelt, Jr., Liberal, who was
picked by four per cent of those in
In senatorial contests 84 per cent of
the bankers chose Republican Charles
Percy to win over Democrat Paul
Douglas in Illinois. In the Oregon
race, 83 per cent selected Republican
Mark O. Hatfield to win over Demo­
crat Robert Duncan.
Looking to the 1968 presidential
race, 47 per cent of the bankers
thought Richard Nixon would be the
likely Republican presidential nomi­

nee, with George Romney a close sec­
ond with 42 per cent of the poll.
Others chosen included John V. Lind­
say, six per cent, and Ronald Reagan,
three per cent. Charles Percy was a
write in candidate for two per cent
of the poll.
Regarding the current tight money
situation and how long it would con­
tinue, 51 per cent thought it would be
a part of the banking scene for the
next six months. Thirty-six per cent
thought the situation would remain
for the next year, and only seven per
cent thought the tight money would
ease in three months. Other estimates
of the situation ranged from two
months to two years. Three bankers
thought the situation might go on in­
definitely and one said it had already
started to loosen.
Asked if, as of today, they would
recommend a general increase in Fed­
eral taxes, 56 per cent said no and 44
per cent said yes. Some of those
answering yes qualified their answers
by stating “if coupled with a decrease
in Federal expenditures” and “if the
Viet Nam war continues.”
*• * *
Keynote speaker at the noon lunch­
eon was Paul S. Nadler, associate pro­
fessor of finance at the Graduate
School of Business Administration at
New York University in New York
City. Other participants at the oneday conference were officers and staff
members of First National Bank in
St. Louis and St. Louis Union Trust
James P. Hickok, chairman of board
of First National, presided at the
luncheon and at the evening dinner
Dr. Nadler told the group that Fed­
eral Reserve policies can have farreaching, and possibly adverse, effects
on the nation’s commercial banks as
the tight money market eases. He said
the pace of our national economic ad­
vance should abate during 1967 and
that the level of interest rates should
continue the modest declines which
set in last August.
“As interest rates begin to fall,” he
said, “a question of real importance
to banking and the economy at large
is whether the banks will continue to
be restrained in their competition for
time and savings deposits by rate
ceilings below those offered by sav­
ings and loan associations, savings
banks and open market investment
“ If the Federal Reserve lowers the
ceiling under its Regulation Q as in­
terest rates fall,” he added, “banks

(Turn to page 48, please)


Banker A rth u r M entz knows the importance of follow-through.
N o t just on the golf course, but in business.
That’s why he turns toTalcott Financing. It might help
improve your “score’,’too.
W hat do you do w hen a c o m m e rc ia l loan c u s to m e r’s q u a lifi­
c a tio n s fo r a loan are “ below p a r” ? O r y o u ’ve reached yo u r
lim it fo r fu rth e r se cu re d o r u n se cu re d cre d it?
A d m it yo u 're “ s ty m ie d ” and ju s t express regrets?
N ext tim e , jo in th e pro ra n ks w ith th is k in d o f fo llo w
th ro u g h : “ W hen you c a n ’t say ‘y e s '.. . say T a lc o tt.” A fte r all,
w h a t’s good fo r y o u r c u s to m e r m eans g ood-w ill fo r you.
H ere's w h y . . .
T a lc o tt can o fte n ta ke over w hen you c a n ’t. By p ro v id in g
secu re d loans a g a in st c u s to m e r’s in v e n to ry , a c c o u n ts re ­

ceivable , p ro d u c tio n e q u ip m e n t, re a lty o r o th e r c o lla te ra l.
For expansion, seasonal needs o r in te rim p ro b le m s. Y our
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Or you m ay p a rtic ip a te up to 50% o f th e fin a n c in g .. .sh a re
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W e’d like you to know m ore o f th e ways we can help you
help yo u r cu s to m e rs . T h e y ’re all in o u r b ro ch u re s, “ B a nke rs
T a lk to th e M an fro m T a lc o tt” and “ B asic Data File on Jam es
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820 Northwestern Bank Building, Minneapolis, Minn. 55402 * (612) 339-771
Atlanta • Boston • Chicago • Dallas • D etroit • H artford
Kansas C ity * Los Angeles • Miami • Newark • New York
Philadelphia * Phoenix * Puerto Rico • San Francisco
Federal Reserve Bank of St. Louis

Commercial Financing * Factoring * Equipment
Financing and Leasing • Acquisition and Merger
Financing • Real Estate Financing • Rediscounting
N o r th w e s te r n Banker, D e c e m b e r,



N ew

D im en sion s o f


(Continued from page 38)
quent. It is estimated that over $30,000,000 of $66,000,000
in modernization loans were submarginal.
Since the Bank of the Commonwealth agreed to buy the
assets of Public Bank if the FDIC would provide a $10,000,000 guarantee it appears that they believed that a
majority of the submarginal loans may still be collected.
Examinations Showed Irregularities

It has been reported that the 1965 examination by super­
visors did not reveal major trouble even though PB of D
had been increasing its proportion of modernization loans
since 1962. A joint examination by government super­
visors in the spring of 1966, however, did uncover suffi­
cient irregularities to have them order an increase of
$5,700,000 in capital and to back this with the threat of
removing deposit insurance if the capital was not in­
Seasoned installment loan officers are highly aware that
uncollateralized modernization loans, especially those
made for debt consolidation purposes carry some calcu­
lated degree of risk but they are put to difficulty to ex­
plain how a leading operation which had been in effect
since 1962 and had been able to pass examination could
deteriorate so rapidly.
Disregarding the possibility of fraud for the moment,
one area that probably might be singled out for atten­
tion is the accounting system used.
Accounting Systems Essential

For the last several months in my meetings with bank­
ers I have generally raised the question on the accounting
systems they use in their banks. Relatively few of the
bankers seem aware of the strong criticism made by certi­
fied public accountants of the ways banks maintain their
books. It is not uncommon for example to find a bank
with its commercial lending operation on a cash basis
while its installment loan operation is on an accrual basis.
Though such a system has been tolerated in the past
by bank supervisors and public accountants, it is recog­
nized that the resulting statements are misleading.
Though I am not and have not been privy to how Public
Bank kept its books I strongly suspect that it carried its
installment loans on an accrual basis. This would over­
state earnings in at least two ways. It would indicate a

“ profit” before it was earned and it would not give proper
recognition to delinquencies.
Deep in Consumer Loans

A bank, such as Public, which plunged deeply into con­
sumer loans would present a distorted earnings picture ^
much more so than a bank whose installment operation
had been in level operation for some time.
The accounting firm of Touche Ross, after a limited
review of Public Bank’s loans found that losses “would ^
exceed by a very substantial amount allowances by Public
It is true that with hindsight one may wish to further
ponder the true meaning of the footnote (a) which ap­
peared at the bottom of the most recent statement of —
Public Bank in Rand McNally’s Bank Directory.
On the surface of the footnote is a logical explanation
of an accounting change.
Most bankers would not consider the bank’s statement y
with footnote as indicating a distressed financial institu­
tion. True, the bank was under capitalized but what
similar sized bank which had grown over $10 million in
a six month period is not suffering from similar growth
pains. Security of over $40 million of U. S. Government -<
securities (including $11 million in U. S. guaranteed
loans) seemed adequate to provide needed liquidity.

The failure of Public Bank, while very regrettable, is
providing additional arguments to back bank supervisors
in their attempts to strengthen our banking system. Reg­
ulation F and similar directives for large national banks
are regulatory steps along the line of more meaningful v
financial statements. Public Bank was neither a national
nor Fed member and its size, though large by most stand­
ards, was not large enough to some under the public dis­
closure requirements. Yet, its failure is leading super- V
visors to reappraise the consistency of the accounting sys­
tem of each supervised bank.
Prudent bankers should examine their own banks’ ac­
counting system and be sure that they are in order. It
is much better to make needed financial modifications T
at one’s own initiative than being forced to by regulatory
bodies.— End.

Before coming to Bank Building
Corporation, Mr. Donahue worked in
the advertising departments at Lin­
E. Mosby, vice president-adver­
coln Engineering, division of the Mc­
tising and public relations of Bank
Neil Corporation, and Garrison-WagBuilding and Equipment Corporation
ner Company in St. Louis.
of America, St. Louis, announces that
Don V. Donahue
has been named Record Highs for Mosler
The Mosler Safe Company an­
public r e la tio n s
nounced record nine months sales and
Mr. Donahue, a earnings last month.
Net income for the nine months
University of Mis­
souri S ch o o l of period ending September 30, 1966 was
Journalism grad­ $3,218,265, equivalent to $1.43 per
uate, jo in e d the share, for an increase of 13.4 per cent
co m p a n y as a over the net of $2,838,268 or $1.27 per
copywriter in 1962 share for the same period last year.
and was appoint­ Sales for the period rose 15.4 per cent
ed assistant pub­ to $45,870,131 from $39,743,780 in the
lic relations director in 1964. He is a similar period of 1965.
The above results and comparisons
member of BPRMA.

Named PR Director for
Bank Building Corporation

B a n k e r , D e c e m b e r , 1966
Digitized forNorthwestern
Federal Reserve Bank of St. Louis


include, for the respective periods, A,
under a pooling of interest, operations
of The American Bank Stationery
Company and those of its whollyowned subsidiaries. On April 1, 1966,
The American Bank Stationery Com­
pany was merged into The Mosler
Safe Company.

Bankers Trust Promotions
George E. Beatty, Stuart M. Ensinger and Alan F. Rothmayer have
been elected vice presidents of Bank­
ers Trust Company, New York, it was
announced by William H. Moore,
chairman of the board.
Mr. Beatty is with the bank’s install­
ment loan division, Mr. Ensinger is
with the pension trust division and
Mr. Rothmayer is with the corporate
agency division.




The checking service you offer
is just like any other bank’s.

Mr. Robert E. Hamilton
Senior Vice President
Correspondent Banking Department
Central National Bank In Chicago
120 South LaSalle Street, Chicago, Illinois 60603
□ Please send me more information on r e c -c h e k ™ service.
□ Please have one of your correspondents call me right away about
re c -c h e k service.



City___________ -


A n d , C e n t r a l N a tio n a l B a n k I n C h ic a g o w ill s h o w y o u h o w to
e sta b lish a c o m p e titiv e a d v a n ta g e in a ttr a c tin g d e m a n d d e p o sits.
This little coupon will bring you information on
how you can offer rec -c h e k ™, the first really new
hank service in a long time. It attracts the business
you need the most — demand deposits.
rec -c h e k means record checks. It is the first
workable system by which you can print out auto­
matically complete money records for your farm,
business and personal customers, from the infor­
mation on the checks themselves.

In addition to his normal statement, your cus­
tomer gets (for a nominal fee) a comprehensive
report containing periodic and year-to-date totals
of expenditures by business or tax category. In
r e c -c h e k


addition, he receives a Transaction Journal that
lists each check and deposit by category number.
U ie system is easily tailored to any customer’ s
specific needs.
rec -c h e k can be installed simply into your own
data processing system or the entire processing of
checks and reports can he handled for you by
Central National Bank.
Either way, it provides you with a customeroriented service that you can get nowhere else.
If the “ Better Mouse Trap’' proverb is true, we
expect you and others will beat a path to 120 South
LaSalle Street. But, who will be first?

available through Central National Bank In Chicago.

Central National Bank In Chicago
Federal Reserve Bank of St. Louis

N o rth w e s te rn Banker, D e c em b er, 1966

LOANS AND DISCOUNTS panel (left to right): George F. Engel, William H. Harrison, sr. v.p.’s; John B. Mitchell, pres.; William
J. Chapman, Virgil F. Sassmann and J. Robert James, v.p.’s.

(Continued from page 44)
will remain dependent on the Federal
Reserve discount window to meet
fund outflows. This would place
banking’s asset composition under the
direct influence of Federal Reserve
money managers.”
If the Federal Reserve does not
lower the ceiling under Regulation
“Q” as interest rates fall elsewhere,
Dr. Nadler predicted, the banks can
once more become the fastest-growing
financial institutions—able to attract
enough money to allow them to pur­
sue lending and investing in a variety
of areas.


“ If the effectiveness of the rate ceil­
ing hobbles are thus removed, com­
mercial banking will again be able to
serve as a major force providing com­
petition in the major capital markets,”
Dr. Nadler added.
“This competition, in turn, will
serve to lower borrowing rates for
mortgage buyers, installment borrow­
ers, state and local government bodies
and corporate borrowers.
“ But one new advantage that the
banks will have in this new competi­
tion is likely to be that corporate
customers will be more loyal to their
banks and less willing to leave them
for a slight rate advantage elsewhere
than they were in 1960 to 1965.”

... where


steaks get
their nam e


Where ihe Twin Cities Meet



for K.C. steaks and roast
beef . . . succulent, tender,
charcoal broiled to your or­
der. For luncheon, dinner
and late supper in down­






Take your Pick — 2 Famous Restaurants and
Cocktail Lounges — Mr. Joe’s and Inn of the
Black Knight. 2 Swimming P ools— Indoor
Heated Pool / Large Outdoor Pool and Patio.
230 Luxurious Guest Rooms and Suites — All
Air-Conditioned, Radio and TV.


Doubles-512.75 Twins-514.75

Reservations Phone
645-8681 or 645-0311
& University Avenues,
Paul, Minn. 55104

th w e s te r n B anker, D e c e m b e r, 1966
Digitized Nfor
Federal Reserve Bank of St. Louis

in the Missouri hotel of d is­
tinction .. .the Phillips. 500
air-conditioned rooms with
tub/show er, TV
from $6.50 singles
$10.75 double
see your travel agent or call
(816) GRand 1-5020

12th and Baltimore
Kansas City, Mo.

A 117-page manual on bank advertis­
ing, publicity, and sales promotion
was released by First National Bank
at its conference.
The manual, prepared by C. Arthur
Hemminger, vice president-public re­
lations, employs a loose-leaf format to
permit future changes and additions.
Twelve major topics are covered in
sections separated by tabled dividers
for easy reference.
Advertising mediums discussed and
evaluated are newspapers, radio and
television, direct mail, outdoor, pre­
miums, novelties, window and lobby
displays, exhibits and films. A copy
of the excellently prepared and illus­
trated manual may be obtained from
the bank.

Executive Committee Member
R. Crosby Kemper, .Jr., has been
elected a member of the executive
committee of Interstate Securities
Company, Kansas City, replacing the
late J. Frank Hudson.
Mr. Kemper has been a director of
Interstate Securities Company since
1964 and a director of the Old Security
Insurance Companies, wholly owned
subsidiaries of Interstate, since 1963.
He is president of the City National
Bank and Trust Company of Kansas
City and chairman of the board of the
Grand Avenue Bank and Trust Com­
pany of Kansas City.





Dial Sells Debentures
Dial Finance Company’s 6 V2 per cent
senior debentures due January 15,
1972 reached the public market at
par on November 16. The debentures
are not redeemable before maturity
and are rated A by Standard and
The net proceeds received by Dial
from the sale of the debentures will
be added to the company’s general
funds and will be used initially to
reduce short-term debt.
Dial is engaged in the consumer
finance business and currently oper­
ates 315 offices in 33 states. Head­
quarters of the firm is in Des Moines.




Why should you use this coupon?
Federal Reserve Bank of St. Louis

Richard B. Beal, Executive Director
Foundation for Commercial Banks
Philadelphia National Bank Building
Philadelphia, Pennsylvania 19107


Dear Mr. Beal:
I’m interested in becoming a member o f the Foundation.
__ Please send complete information.
___ Enroll me as a member and bill me later.
__ Enroll me as a member. Here is my check for $ __ ____
based on rate o f $10 per million o f deposits.



!_______________________________________________________ i

See why on December 18th!
.. . because th a t’s the big date o f the m ost spectacular national
p rom otion in the history o f Full Service banking! T w o
trem endous T V "firsts” that w ill pay o ff for you all year long. For the
first time ever— the fabulous D r. Seuss com es to T V w ith
the enchanting C h ristm as classic, "H o w the G rin ch
Stole C h ristm a s” ! For the first time ever — the
F ou ndation for C o m m ercia l Banks w ill be
telling your Full Service banking story on national television,
as full sponsor o f this exciting e v e n t—expected to bring
your m essage to m ore than 45 million
people! A n d this is just a part o f the F ou n ­
d a tio n ’s year-round 1.8 m illion dollar cam paign
w h ich includes dynam ic magazine adver­
tising in Life, Newsweek, Look and Time.
Y o u can be a part o f this outstanding
prom otion and help support the F oundation
in this increasingly im portant advertising
program . If y o u ’re not already a Foundation
m em ber, start the N ew Y ear right. D o n ’t
w a it—clip the coupon above and join your

Foundation for Commercial Banks
N o r th w e s te r n B anker, D e c e m b e r, 196 6


a n k e d 'i-


Best wishes
for your happy






B ob C a r l s o n

ic k


ic k




E d K a ra


P at Bavin


H a n k <p th e k tp p je -i M id ,u > .e ii

h w e s te r n B anker, D e c e m b e r, 1966
Federal Reserve Bank of St. Louis

of M inneapolis
M ember Federal D eposit
Insurance Corporation



Harry S. Muir
Harry S. Muir, president of the First
National Bank of Winnebago, died re­
cently. He was 81.



S e c re ta ry

Feted on 40th Year

S t. Paul
M inneapolis

Building Construction Starts
Construction has begun on a new
building for the State Bank of War­
ren. The new building, which will
cost about $200,000, is scheduled for
completion in about a year. H. A.
Bustrack is president of the bank.

Celebrate Anniversaries
Several long-time anniversaries were
celebrated in separate Minnesota com­
munities last month.
The Oakley National Bank of Buf­
falo celebrated 80 years and the com­
pletion of a remodeling job. H. F.
Dickson is executive vice president.
At Chatfield, the Root River State
Bank celebrated its 110th anniversary.
George A. Haven, president of the
bank, is celebrating his 61st year with
the bank.
The First State Bank of Fountain
celebrated its 65th year and the 60th
year of its president, Hiram Johnson.
Sixty-five years was celebrated by
the Triumph State Bank in Trimont
with a public open house. Arthur
Peterson is president of the bank.

Cannon Falls Appoints
William Sutherland has been named
assistant vice president of the Secu­
rity State Bank and assumed his new
position last month. He had been
senior assistant bank examiner with
the Federal Deposit Insurance Corpo­

Recognized for 4-H Support
Marvin Rye, executive vice presi­
dent of the State Bank of Conger, ac­
cepted recognition on behalf of the
bank recently for outstanding support
of the 4-H program.

Bank of Welcome has been authorized
to increase the amount of capital stock
from $25,000 to $50,000 by sale of new

Mora Names Directors
Peoples National Bank of Mora has
announced the addition of two new
members to the bank’s board. Elected
were Russell Bergren, local farmer,
and Robert Wurzl, area roofing con­

Director at Alexandria
Shareholders of the First Farmers
National Bank of Alexandria have ap­
proved the expansion of the bank’s
board of directors from five to six.
Dr. Donald Bongard was elected to fill
the sixth position.

Henry S. Swan, cashier of the Com­
mercial State Bank of Two Harbors,
was honored last month on the com­
pletion of 40 years of service to the
bank. He joined the bank in 1926, was
elected assistant cashier in 1945 and
cashier in 1955.

Put On Industrial Board
Two bankers have been elected to
the board of directors of RockwellStandard Corporation, Pittsburgh, Pa.
They are John J. Balles, vice president
of Mellon National Bank and Trust
Company, Pittsburgh, Pa., and Roy L.
Reierson, senior vice president of
Bankers Trust Company, New York.

Named to Youth Board
Edwin H. Mosler, Jr., director of
Mosler Safe Company, has been
pointed to serve as a member of
New York City Youth Research


.Veir Unitili tiif fo r F or ifns Fulls
THREE-DAY celebration marked plays of similar size for commercial
the recent completion of the new customers.
building for the First National Bank A mezzanine area houses bookkeep­
of Fergus Falls. Open house was held ing facilities and the directors’ room.
each day from 9:00 a.m. to 3:00 p.m. to Two drive-up teller windows, with
permit the public to tour the building closed circuit television and pneumatic
before banking business commenced tube service are provided on the north
side of the building. Both stalls are
at the new location.
under shelter. Parking for 23 autos
The 92- by 70-foot ground level cus­ also is available on the bank’s quartertomer area has a 12-foot wide arcade block space of ground.
President of the 82-year-old bank is
extending the full length of the build­
ing. Massive glass walls are on the Samuel F. Adams. Other officers are:
south and west, with electrically oper­ Earl Grundei, executive vice president;
ated drapes to close off the windows Samuel P. Adams, Jr., vice president
when desired. A large room off the and assistant cashier; Rowan McAl­
lobby is big enough to accommodate lister, cashier; Elmer Froelich and N.
a large automobile and any other dis- Rollie Lake, asssistant cashiers.


Elected to Board
L. Larson, attorney, has been
elected to the board of directors of the
First National Bank of Sauk Centre.
He succeeds Walter Kleinschmidt, who
asked to be relieved as director, but
will continue as executive vice presi­
dent and cashier.

Increases Capital
In recent action by the State Bank­
ing Department, the Welcome State
Federal Reserve Bank of St. Louis

NEW BUILDING for First National Bank, Fergus Falls.
N o r t h w e s t e r n B a n k e r , December, 1 9 6 6


Here’s a new microfilmer for
the bank on the way up.....

n o r t h w e s t e r n B anker, D e c e m b e r, 1966
Federal Reserve Bank of St. Louis


and up!
B u ilt by K o d a k to K o d a k -q u a lity s ta n d a rd s , th e n ew
R e c o r d a k R e l ia n t 4 0 0 M ic r o f iim e r is ru g g e d ,
d e p e n d a b le , a n d s u r p r is in g ly lo w in p r ic e . . . is
id e a l fo r th e s m a lle r b a n k o r b ra n c h w h o s e v o lu m e
is on th e w a y up. W ith th e b a s ic u n it (s h o w n at le ft)
you ca n m o d e rn iz e y o u r m ic ro film in g o p e ra tio n s
rig h t fro m th e s ta rt. A n d y o u ’re a ll s e t to u p g ra d e
th e m s till m o re w ith “ a d d -o n ” a c c e s s o rie s (sh o w n
b e lo w ) as y o u r n e e d s g ro w .
A d d th e fa m e d R e lian t P re c is io n F e e d e r to th e
R elian t 400 M ic r o fiim e r , fo r e x a m p le —a n d y o u
a u to m a te its m ic ro film in g ra te at 400 c h e c k s p e r
m in u te . A d d a R eco rd ak E n d o r s e r - a n d you can
Federal Reserve Bank of St. Louis

e n d o rs e o r fa c e -s ta m p c h e c k s a u to m a tic a lly as
th e y a re m ic ro film e d . A d d a K odam atic in d e x e r and you ca n h ave th e film re c o rd in d e x e d as p a rt
o f th e m ic ro film in g o p e ra tio n . G et an e x tra in te r­
c h a n g e a b le film u n it (c h o ic e o f re d u c tio n ra tio s —
20 and 32:1) and you a re a b le to s w itc h fro m one
d e p a rtm e n ta l m ic ro film in g jo b to a n o th e r—even in
m id -ro ll. B e st o f all, “ a d d -o n ” a c c e s s o rie s fo r th e
R eliant 400 M ic ro fiim e r can be in s ta lle d on a w hen,
as, and if n e e d e d basis.
F or fu ll d e ta ils , w rite : E a stm an K o d a k C o m p a n y,
B u s in e s s S y s te m s M a rk e ts D iv is io n , D e p t. 0 - 12,
R o c h e s te r, N.Y. 14650.

N o r t h w e s t e r n B anker, D e c e m b e r, 1966




dent of the Midland National
Bank, and Miss Downtown Minneap­
olis, Ginny Mondale, recently turned
over the keys to the newly completed
headquarters of Reliance Insurance
Companies to Aivali C. Schuck, gen­
eral m an ager of the Minneapolis
branch of Reliance. The “key” cere­
mony was the final event in the post
construction tour just before the final
move-in was completed.

AT OPENING— Miss Mondale, William R.
Chapman and Alvah C. Schuck.

Due to its need for expanded facili­
ties, the Reliance branch has taken
over the entire fifth floor of the Mid­
land Bank Building. Reliance has also
increased its staff to 101 persons to
service the 500 agents in the five up­
per midwest states served by the
* * *
A new educational filmstrip, The
Economic Circle, will be used to im­
plement teaching the basic economic
concepts of earning, saving and spend­
ing to Minneapolis and suburban ele­
mentary students. The 18-minute col­
or, sound filmstrip was produced by
Paul Amidon and Associates for Farm­
ers and Mechanics Savings Bank.

Designed for the primary grades,
the filmstrip weaves into its story line
r t h w e s t e r n Honker, D e c e m b e r , 1 9 6 6
Digitized for
Federal Reserve Bank of St. Louis

the economic choices in the areas of
“earning, savings, spending.”
Free distribution of the filmstrip to
elementary schools participating in the
school savings program with Farmers
and Mechanics will be after the first of
the year. Other schools may obtain
the filmstrip at a nominal fee.
* * *
The First National Bank of Saint
Paul recently held a series of noon

hour shows on the main banking floor
where youngsters ranging in age from
7 through 14 years demonstrated their
artistic talents.
Miss Betty Ann Malcolm recently ad­
dressed the Inter-Club Council lunch­
eon meeting at the Women’s City Club
of Saint Paul. Se is the newly ap­
pointed chairman of the Women’s
Committee and member of the Gov­
ernor’s Commission on the Employ­
ment of the Handicapped.
Miss Malcolm is an assistant cash­
ier of the Stock Yards National Bank
of South St. Paul and vice chairman
for the Minnesota Group, National As­
sociation of Bank Women.
* * *
Ray C. Anderson, executive secre­
tary and educational director of the
Minneapolis AIB Chapter for the past
six years, presided at the fall meeting
of the Association of AIB Resident
Secretaries held in Detroit, Mich., last
month. Mr. Anderson was elected
chairman of the Resident Secretaries
group at the convention in San Diego
last June.
* * *
The Saint Paul Chapter of AIB
Women’s Committee last month spon­
sored a tour of the Indian Reservation
and Industry in Onamia Minn. Ar­
rangements were in charge of Marian
Klostermann, women’s chairman, and
her committee.
st= ♦ ♦
Two officers of The First National
Bank of Saint Paul addressed national
meetings of bank officials last month.

Auditor Roger R. Palmer appeared be­
fore the NABAC annual convention
in New Orleans and Assistant Vice
President Charles L. Nesbitt addressed
the annual meeting of the Bank Mar­
keting and Public Relations Association in Bal Harbour, Fla.
* * *
Four promotions at Northwestern
National Bank of St. Paul have been
announced by H. William Blake, presi­
dent. Eugene Jackels has been named
auditor. Charles P. Driscoll, William
A. Reeves and William G. Umphress
have been named assistant cashiers.




C h ech S a vers
E C K -S A V E R S carry mutilated
mis-encoded documents in
unbroken audit trail through automatic sorter equipment. Because such
processing becomes more and more
sophisticated, now original documents
inside Check Savers’ carriers can be
microfilmed with excellent legibility.
Photo-Lucent paper, a new, exclusive
Check Savers development for such
reproduction purposes, is available in
a new line of Check Saver forms recently announced by Harold Wood,
president of Check Savers, Inc.
This newly developed Photo-Lucent
paper is a perfection of the translu­
cent stock used in regular Check Sav­
ers. The improvement is obvious.
Seen through Photo-Lucent Check Sav­
ers, all printing, encoding and writing
on any check can be easily read. So
any “encased” document can now be
read and encoded on carrier, filed by
account name by reading signature,
and micro-filmed.
Free samples of new Photo-Lucent
Check Savers are available on request.
Please specify type of encoding/sort­
ing equipment in which they may be
used. Write: Check Savers, Inc., Dept.
NB1, P. O. Box 329, Park Ridge, 111.





Left to right: Jack Weber, John Ordos, Doug Johnson.

J.V 11 SVSl C l 1IS g o .

T h e right perigee.The right apogee.
A n d the right answers to all your banking problems from Midland’s
Jack W eber, John Ordos, and D oug Johnson. For transits, invest­
ments, credits, operations, collections, or any personal services—
these Midland correspondents will adjust to your orbit. A nd fast.
W h en you need space-age full service banking, give Midland a call.
Federal Reserve Bank of St. Louis


Midland National Bank
o f Minneapolis
Call 332-0511 401 Second Ave. So. • Minneapolis, Minn. 55440
M em ber Federal Deposit Insurance Corporation

N o r th w e s te r n B anker, D e c e m b e r, 1966


Minnesota News
------------------------------------------- N

Your man
At the

Vice President

To Our M any
Friends in Banking . . .
Best W ishes
for a
H ap p y H olid ay
" The Largest Independent
F u ll Service Bank
in the Upper M id w e s t”

S even th and Robert
S aint Paul
2 2 2 -6 6 6 6
M em ber Federal Deposit Insurance
C orporation • Federal Reserve System

Digitized Nfor
th w e s te r n B anker, D e c e m b e r, 1966
Federal Reserve Bank of St. Louis

PRESIDENT AND MRS. POHLAD were on hand to welcome Mayor and Mrs. Naftalin
as Marquette National Bank of Minneapolis marked the completion of its remodeling
program with a three-day open house. The Naftalins were among 30,000 people who
toured the bank November 1, 2 and 3. In addition, the bank reports that thousands of
visitors became bank customers as part of the bank’s special premium offer for new
The remodeling program, which began 10 months ago, included all departments of the
bank from the lower level safe deposit department to the bank’s quarters on the second

(Continued from page 42)
Mr. Youngdahl said: In my opinion
our greatest problem is inflation —
present and prospective. Our future
depends on slowing the inflationary
upswing in our price structure. Em­
phasis now must be changed and other
steps taken to correct this. In the
past 12 months our monetary policy
has been one of restraint while fiscal
policy was vigorous the other way. A
sound fiscal policy is our only source
of additional restraint. Too little is
known about the 1966-67 budget and it
looks like at least a $10 billion deficit
this year. Budget restraint of $10 bil­
lion in the next year would be a good
target, since most of this can be done
in non-defense spending. I am for a
tax increase. I believe in getting this
mainly from individuals by surcharge
in the income tax, but would settle for
a surcharge on both individuals and
corporations. Recession is predicted
by some, but our monetary policy has
the leeway to ease, and the removal
of the surcharge tax and the invest­
ment credit repeal can be done to off­
set recession.

St. Paul Promotions
Directors of The St. Paul Fire and
Marine Insurance Company have ad­

vanced three officers and elected a
new one, company President Ronald
M. Hubbs announced last month.
Advanced were Carl B. Drake, Jr.,
to vice president and assistant to the
president; Iwan J. Fertig to vice pres­
ident and comptroller, and Culver
Davis to secretary. Kernel L. Armbruster, head of the insurance law
department, was elected assistant sec­


Municipal Issues Increase
Statistics just released by the In­
vestment Bankers Association of
America in its quarterly Municipal
Statistical Bulletin show that $8.4 bil­
lion of municipal bonds have been
issued in the first nine months of 1966.
Borrowing during the third quarter
in the face of an extremely tight
money market was over $300 million
less than the previous year. Reoffer­
ing yields continued to rise in the
third quarter and reach levels not seen
since the early 1930’s. The trend was
reversed in September for Aaa and Aa
rated issues, however the yields for A
and Baa rated issues continue to rise.
Seven states each issued bonds total­
ing more than $100 million in the third
quarter. California was the largest
issuer with $314 million followed by
New Jersey with $211 million, and


Minnesota News
Kentucky with $196 million.
For the first three quarters of 1966
California was the largest issuer of
bonds for education with $353 million,
New Jersey led in issues for transpor­
tation with $179 million, and California
led in bond issues for utilities and con­
servation with $446 million.
The Bank of America, San Fran­
cisco, was the leading underwriting
manager for the third quarter with
management credit of $181 million
For the year-to-date, however, First
National City Bank of New York con­
tinues as leading manager with a
three quarter volume of $763 million.
After the very heavy slate of the
first two quarters, the volume of fin­
ancing up for voter approval declined
in the third quarter. Thus far in 1966
voters have approved future bond
issues of over $1.6 billion for elemen­
tary and secondary schools and $1.2
billion for water and sewer systems.
For all uses, voters have approved
bond issues of over $3.9 billion in the
first nine months.
According to IBA statistics, as of
October 1 of this year bond elec­
tions that were scheduled for the
month of November exceeded two bil­
lion dollars. The $8.4 billion in bonds
for the first three quarters is up $69
million over the same period of 1965.

Receives “ NABAC Key”
Arthur C. Suhrbier, auditor of the
Continental Illinois National Bank
and Trust Company of Chicago, re­
ceived the highest
award NAB AC.
The Association
for Bank Audit,
Control and Oper­
ation, can confer
on a banker—the
The p r e s e nt a­
tion was made at
the - closing ban­
quet of NABAC’s
42nd annual con­
vention in New Orleans by NABAC
President Walter C. Mercer, who is
also executive vice president of the
Ohio National Bank, Columbus. Mr.
Suhrbier is the 22nd person to receive
the Key in the 42-year history of
The Key is presented for excellence
in service to the banking industry. In
making the award, Mr. Mercer said
presentation of the Key proves the
recipient “has devoted much of his
time and talent to the furtherance of
his profession, has given unselfishly
of his abilities, has supported our col­
lective efforts towards progress in the
banking industry, and has helped
Federal Reserve Bank of St. Louis

train those who will succeed us in the
years ahead.”
Mr. Mercer cited Mr. Suhrbier’s
many activities for NABAC, as presi­
dent of the Chicago chapter, as na­
tional president in 1960-61, as an
instructor at the NABAC School, as a
speaker and chairman of various meet­
ings, and as a member of the special
task force working on the chartered
bank auditor program.
“Regardless of what he has been
asked to do,” Mr. Mercer declared,
“he has ever been willing to serve.
No trip, no speaking assignment, no
special task, has been too burdensome
for him to undertake. He has been
willing to go anywhere, and serve on
any group, if it helped banking, his
chosen field of auditing, or NABAC.”
A record attendance of 2,400 bankers
and their wives were at the three-day


------------------------- N

Your man
At the

First Wisconsin Promotions
First Wisconsin National Bank has
named two new assistant vice presi­
dents and six new assistant cashiers.
Promoted to assistant vice president
from assistant cashier were E. Wayne
Sams, manager of electronic data proc­
essing (EDP) systems and program­
ming, and Edward R. Claussen, man­
ager of clerical operations supervision.
Named assistant cashiers were Ed­
ward J. Burkholz, Thomas A. Glomski, Jr., John W. Menard, Steve A.
Pavleje, Jack P. Reiners and Glenn
A. Solsrud.

NASSB Executive Committee
J. F. M. Slade, newly-elected presi­
dent of the National Association of
Supervisors of State Banks, has an­
nounced the appointment of executive
committee members.
Officers elected at the association’s
recent convention, held in Salt Lake
City, are:
President Slade, superintendent of
banks, Oregon; first vice president,
Marvin A. Bryan, superintendent of
banks, Tennessee; second vice presi­
dent, Philip Hewes, bank commission­
er, Connecticut; third vice president,
Harry Bloom, state bank commission­
er, Colorado, and secretary-treasurer,
Raymond H. Wesner, deputy commis­
sioner of banking, New Jersey.
The chairman of the executive com­
mittee and the immediate past presi­
dent is William E. Nuesse,. Wiscon­
sin’s commissioner of banks.
Appointed members of the 12 geo­
graphic divisions are: John B. Hynes,
Massachusetts; Frank Wille, New
York; G. Allen Patterson, Pennsyl­
vania; John D. Hospelhorn, Maryland;
W. M. Jackson, Georgia; Dick Simpson,

Assistant Vice President

To Our M any
Friends in Banking . . .
Best W ishes
for a
H ap p y H olid ay

"77ie Largest Independent
F u ll Service Bank
in the Upper M id w e s t "

S even th and R obert
Saint Paul
M em ber Federal Deposit Insurance
C orporation • Federal Reserve System

N o r th w e s te r n Banker, D e c e m b e r. 1966


Minnesota News
-------------------------------------------- s

Your man
At the

DigitizedN for
o r t FRASER
h w e s te r n B anker, D e c e m b e r, 1966
Federal Reserve Bank of St. Louis

Arkansas; Charles D. Slay, Michigan;
Charles McCall, Illinois; Herman Lerdal, South Dakota; J. O. Wilson, Kan­
sas; Franklin J. Stowell, Arizona, and
Jack C. Hood, Washington.
Messrs. Hynes, Wille, Jackson, Mc­
Call and Lerdal are newcomers to the
executive committee.

Robert Morris Officers
At its Annual Fall Conference busi­
ness session in Houston last month,
Robert Morris Associates installed its
new officers for 1966-67:
President—D. Rice Longaker, vice
president, The Provident National
Bank, Philadelphia, Pa.; First Vice
President—James H. Styers, sen­
ior vice president, Wachovia Bank &
Trust Company, Winston-Salem, N. C.,
and Second Vice President— Lloyd A.
Birnson, president, The Arizona Bank,
Also installed at the meeting were
four new directors who will serve
three-year terms. They are John J.
Fawley, vice president, First Pennsyl­

(Continued from page 37)
fast-m oving trends in agriculture you
m ust get out on the farm s. —farmer.
I f w e are to g et accurate inform ation
fo r our credit decision, it m ust be based
07i coynplete record s, n ot gu essw ork .

—ban ker.
W e as bankers are su b ject to criti­
cism fo r n ot show ing our custo?ners
w hat w e n eed in the w ay o f records.

I f y o u cannot provid e our credit
7ieeds, w e w ill find som eon e w ho can.
— farmer.
W e will have no trou b le if w e are
ready, w illing and able to give the
am ount and ty p e of help our cu s­
tom ers need, stop blaming the farm er,
and put the resp on sibility w h ere it
belongs— in y o u r office.—banker.

vania Banking & Trust Company,
Philadelphia, Pa.; Charles V. Lane,
senior vice president and secretary,
Marine Midland Trust Company of
Central New York, Syracuse, N. Y.;
Charles T. McGarraugh, vice president,
Northwestern National Bank, Minne­
apolis Minn., and Howard W. Rathbun, first vice president, First National
Bank, San Jose, Cal.

Firm Donates Computer
Hawkeye-Security Insurance Com­
pany presented a Univac SS 80 com­
puter to Drake University at cere­
monies held at the company’s head­
quarters in Des Moines and attended
by company and university officials.
The computer will be moved to the
Drake campus later this year. It is
already available to Drake faculty for
research and analysis work.
At the university the computer will
be used primarily as a research and
teaching tool, and will supplement a
less sophisticated computer now on

A most important part of the con­
ference were the workshop sessions
devoted to a variety of subjects rang­
ing from Community Development to
Agricultural Data Processing to Cor­
respondent Agribanking. Bankers were
assigned to specific sessions and
rooms were filled to overflowing. In
fact, some took in the information
from standing positions in the halls
outside the rooms.
Bankers from across the country
acted as discussion leaders in the
workshops. Success of their efforts
could be gauged by the ensuing dis­
cussions which took place between
bankers in the lobby of the Leaming­
ton during free time.
Speaking at the Ag Conference ban­
quet was The Honorable George Mc­
Govern, United States Senator from
South Dakota.

BANK FUNDS FOR AN EXPANDING AGRICULTURE was the title of this panel’s
discussion. Panel members are: Linton C. Lull, pres., The Smith County State Bank,
Smith Center, Kan.; Edward M. Norman, moderator, pres., First Natl., Clarksville,
Tenn.; William W. Phillips, Jr., pres., The American Natl. Bk., Beaumont, Texas; and
C. P. Moore, sr. v.p., The Great Falls Natl. Bk., Great Falls, Mont.
Federal Reserve Bank of St. Louis

m ong th e mw e a re
th a n k fu lfo r a t th is tim e a n d
a il th rou gh th e yea r is th e
p rivileg e o f servin g you a n d
you r ban k. W e a re g ra te­
fu l fo r th e la stin g frien d sh ip s w e h ave m ade.
M on g w ith ou r gra titu d e, w e sen d you ou r
sin cere w ish es fo r a m ost p lea sa n t M olid a y
S ea son -a n d th e b lessin gs o f g ood h ea lth an d
g ood ch eer in th e com in g yea r.

Vice Presidents

Assistant Vice President


Assistant Cashiers

and carpeting put down and the ser­
vice areas were rearranged.

Soul li Dakota

E. P. Theim
E. F. Theim, 83, died last month in
Pierre. He was formerly president of
the First National Bank in Pierre and
was a member of the bank’s board of
directors at the time of his death.


P resident

Ipsw ich


S e cre ta ry



Continental Promotes Five

Colman Bank Remodeled
The Dakota State Bank of Colman
is back doing busines in its building.


The bank had moved out for a time
while the building was being remod­
eled. Walls were paneled, a new floor

\ f G"etin

eciSon j








Directors of Continental Illinois Na­
tional Bank and Trust Company, Chi­
cago, have promoted five officers and
elected five others.
In Continental’s commercial bank­
ing department, John L. Hines was
promoted from second vice president
to vice president. Elected second vice
presidents from assistant cashiers
were Philip M. Lewin and George O.
Podd, Jr. John H. Woods was named
assistant cashier.
In the trust department, James R.
Nolan moved from trust officer to
second vice president and Gabe W.
Burton was advanced from assistant
secretary to trust officer.
Max Katz and T. Webb Sexton, Jr.,
were appointed assistant cashiers in
the bond department.
In the international banking de­
partment, John P. Weaver was made
assistant cashier.
Emil E. Schuster was elected as­
sistant cashier in the operating de­





50th Year at 1st of Chicago


M c G IL L




Samuel Sachnoff, assistant vice pres­
ident in the municipal bond depart­
ment of The First National Bank of
Chicago, marked his 50th anniversary
with the bank November 13.



Evans Named Treasurer

A.C. & Aud.

R. M. M c G R E G O R









N o r for
e s te r n B anker, D e c e m b e r, 1966
Federal Reserve Bank of St. Louis

William F. Evans has been elected
treasurer of Bankers Security Life In­
surance Society, Leslie P. Schultz,
president, has an­
Mr. Evans was
previously treas­
urer for Liberty
L i fe I n s ur a nc e
Company, Green­
ville, South Caro­
lina, and served
on its operations
and i n ve s t m e n t
The new treas­
urer will be responsible for the So­
ciety’s overall accounting and invest­
ment operations and the functions of
the comptroller.
Bankers Security is a member of
the Financial General Corporation in­
surance group.






Celebrates 8 0 Years

North Dakota


P resident



S e c re ta ry

Bismarck . A y C redit C on feren ce
The Agricultural Committee of the
North Dakota Bankers Association has
announced program details for the
NDBA Fifth Annual Agricultural
Credit Conference. Dates for the con­
ference are December 8-9 at the Oak
Manor Lodge in Fargo.
O. V. Stenehjem, vice president of
the First International Bank at Wat­
ford City and chairman of the NDBA
Agricultural Committee, has requested
that reservations be submitted as soon
as possible.
The conference program includes a
discussion of the Uniform Commercial
Code and its application.
Program for the business session is
as follows:

tivity and Management, Peter
H. Wasche, Wascvhe Agricul­
tural Service; Past President of
North Dakota Farm Managers
and Rural Appraisers
10.4511:45 “A Second Agricultural Revolu­
tion,” Sister M. Thomas More
OSF, Professor of History, Holy
Family College, Manitowoc, Wis.

12:151:30 Presiding: A. A. Mayer, Presi­
dent, NDBA
Guest Speaker: U. S. Congress­
man Mark Andrews, “Washing­
ton D. C. and the North Dakota


Afternoon Sessions

8 : 00-

Presiding: Ray Skorheim, First
National Bank, Minot, N. Dak.

9:00 Registration Oak Manor Lobby
Morning Sessions



2: 00-

Presiding: O. V. Stenehjem,
Chairman, NDBA Agri. Com­
mittee, First I n t e r n a t i o n a l
Bank, Watford City, N. Dak.
8:55 Remarks: A. A. Mayer, Presi­
dent, NDBA; President Dakota
National Bank, Bismark, N.
9:009:15 Tri-State Agricultural Institute;
A. M. Severson, President, Graf­
ton National Bank, Grafton, N.
9:1510:00 Uniform Commercial Code and
Its Effect on Farm Lending; G.
M. Johnson, President, First
National Bank, Minot, N. Dak.

2:45 Fred D. Sobering, Extension
Economist, NDSU; Farm Credit
2.453:15 N. D. Livestock Development
Committee, Ray Schnell, Presi­
dent, N. Dak. Livestock Associa­
3:153:45 Factoring the Formula for Farm
Financing, Richard C. Crockett,
Executive Vice President, GNDA
5:006:15 Social Hour, Royal Room
6:308:30 Banquet — Presiding, Roy H.
Johnson, Vice President, West
Fargo State Bank
Speaker: O. Robert Gadberry,
Vice President and Trust Officer,
Fourth National

10: 00-

10:15 Coffee Break
10:1510:45 Real Estate, Its Value, Produc­

Ihe National Bank





Member o f Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis



The First National Bank of Oakes
last month celebrated 80 years of ser­
vice to the community. An open house
for the public was held in the bank.
The bank was opened for business
on November 16, 1886, and chartered
under the laws of the Territory of the
Dakotas. In 1902 the bank was con­
verted to a national bank.
Glenn V. Dill is president of the
bank. Capital structure is $260,000.

Branch Approved
The American National Bank of
Valley City has received approval from
the Comptroller to establish a branch
at Tower City.
B. Cummings, president of the
bank, stated that a permanent location
has been chosen, but the branch will
open as soon as suitable temporary
quarters can be arranged.

Marks Anniversary
The Citizens First National Bank
of Wahpeton last month celebrated its
75th anniversary with a public open
house. Refreshments were served and
roses were presented to some of the

Named President
Directors of the Liberty National
Bank and Trust Company in Dickinson
have elected A. J. Martin, Buffalo, S.
Dak., president. He has been on the
board of the bank since 1955 and chair­
man since 1964.
Mr. Martin is also president of The
Bank of Rhame and vice president of
the First National Bank of Hettinger.

Hold Livestock Forum
Over 180 ranchers, farmers and Fu­
ture Farmers of America attended the
Third Annual Livestock Forum in
Williston, sponsored by the American
State Bank of Williston and the North
Dakota Stockmen’s Association.
According to Lyle Sorum, assistant
vice president of the bank, speakers
included Bennett Hauenstein, assist­
ant vice president, First National
Bank of Chicago, a rancher, a repre­
sentative of the packing industry, and
several other outstanding authorities
on livestock.



M a in a t 8th
S . M in n e so ta at 33rd
E . 10th at O m ah a

N o r th w e s te r n Banker, D e c e m b e r, 1966


M ontam i

Your man
At the

R epre sentative

B A N K S and B A N K E R S

To Our M any


P resident


S e c re ta ry

T e rry

Plan Bank Merger

p r e v i o u s l y in the
of the First National Bank of Butte
and the Daly National Bank of Ana­
conda have ratified action of the
boards of directors of the banks ap­
proving an agreement for consolida­
tion of the two banks.
According to Irving H. Bolitho, pres­
ident of The First National Bank of
Butte, this clears the way for a deci­
sion by the Comptroller of the Cur­
Mr. Bolitho will be chairman of the
consolidated bank and Lowry Kunkel, president of the Daly National
Bank, will be president and chief ex­
ecutive officer.
The consolidated First Nat i onal
Bank will be a subsidiary of the
Northwest Bancorporation as the Daly
National Bank has been heretofore.


o rthw estern

for a
H ap p y H olid ay
" The Largest Independent
F u ll Service Bank
in the Upper M id w e s t”


Bank Officials Sentenced
Donald C. Taylor, a former Great
Falls National Bank vice president
and controller, has been sentenced to
serve two concurrent two-year prison
terms after he pleaded guilty to
charges of misapplication of $47,794
and embezzlement of $6,179 from the
Great Falls bank.
In similar action, Mrs. Caroly Arland, an employee for 10 years and
head teller for three years at the First
State Bank in Shelby, was given a
provisional two-year sentence. She
pleaded guilty to embezzling $6,500
from the Shelby bank.

Celebrate oO Years

S even th and Robert
S aint Paul
2 2 2 -6 6 6 6
M e m b e r F e de ra l D e p o s it In s u ra n c e
C o rp o ra tio n • F e de ra l R e serve S yste m

o r t hFRASER
w e s te r n B anker, D e c e m b e r, 1966
DigitizedN for
Federal Reserve Bank of St. Louis



Friends in Banking . . .
Best W ishes



A staff party was held recently to
honor S. Fred Martin, vice president
and cashier of the First National Bank
of Butte, w h o
c o m p l e t e d 50
years of service
with the bank on
December 1.
Mr. Martin, a
natWe of Butte,
has worked in all
d e p a rt m e n ts of
the bank during
his tenure. He
was named an as­
S. F. M A R T IN

sistant cashier in 1951 and moved up
the ladder to his present position in
1962. In 1965, he was also elected to
the bank’s board of directors.


To Head Glendive Bank
T. A. (Tully) Vashus has been ad­
vanced from executive vice president
to president of the First National
Bank, Glendive,
to succeed the late
John F. Sterhan.
Ted Sell, vice
president, was
e l ec te d to the
board, along with
John F. Sterhan,
Jr., and Carolyn
Mr. Vashus, 49,
is a native of
Glendive. He be­
came affiliated with the First National
in 1948, and was named executive
officer upon the death of the late G.
P. Drowley, then president, in 1955.
He is a graduate of the School of
Banking at the University of Wash­
ington in Seattle, and in 1962 attended
a summer session for senior bank offi­
cers held at Harvard University in
Boston. He holds a certificate in ad­
vanced accounting from IAS, Chicago,
and in credit and financial analysis







P i r n <i Q t r P P t

Suit Asks Court to Halt
Merger of Montana Banks
A suit has been filed by Albert E.
Leuthold, Montana superintendent of
banks, and two Butte banks asking a
Federal Court to bar Acting Comp­
troller of the Currency William B.
Camp from approving a merger they
claim violates Montana’s law against
branch banking.
The proposed merger is between
First National Bank, Butte, and Daley
National Bank, Anaconda, as reported
on earlier. Daley National is an affil­
iate of Northwest Bancorporation.
The two banks claim a 1933 state law
permits merged banks to continue
operating both locations after the mer­


Federal Reserve Bank of St. Louis

from Kent Olin, Don Ferrel, George Alff, Terry Ryan
and all the folks at Denver U.S.
' t h a t 's t h e b a n k f o r m y m o n e y !

N o r th w e s te r n B anker, D e c e m b e r, 1966

diameter at the base to nine feet in
diameter at the roof. Each column
weighs approximately five tons. One
of the most unique features of the
bank is the completely landscaped
mall at the front.
The bank, which first opened its
doors in July, 1963, showed total as­
sets of more than $8 million on the
September 20 call report.



Joins Colorado Springs Bank
The appointment of Lee G. Fisher
to assistant manager of the mortgage
loan department of the Central Colo­
rado Bank in Colorado Springs has
been announced by Winford Griffin,
president. Mr. Fisher was formerly
with Kassler & Company of Denver.
THIS FLOAT, “ Montana Trail Portraits by Charles M. Russell,” won first place and
$300 in the 19(56 Western Days Parade. The float included three life-sized reproductions
of paintings by the famous western artist.

W in s

S ecom l

of Midland National
Bank, Billings, have found that
winning parade float contests pay off
in a big way.
The bank’s first major entry was in
1964 when the employees designed and
built a replica of “Josephine,” the
steamboat that one time paddled the
Missouri and Yellowstone Rivers to
the present site of Billings.
This year the employees again
worked together to build a float en­
titled “Montana Trail Portraits by
Charles M. Russell.” The float in­
cluded three real-life reproductions of

C on test

the famous western artist’s most popu­
lar paintings.
Both floats won first prize in local
parades which drew thousands of
viewers and front page publicity. And
each first prize was accompanied by a
$300 cash award which the employees
used to buy paintings by Billings’ ar­
tists for permanent display in the bank
lobby and lunch room.
Each float took about 600 man-hours
to build and cost approximately $500
for materials. Nearly half of the Mid­
land Bank staff of 130 employees
pitched in to work on the floats.

C o lo r a d o
W y o m in g .\e w s

Appointed by ABA
Harley N. Patton, Jr., vice president
of the Central Bank and Trust Com­
pany and manager of its installment
loan department, has been reappointed
as a member of the Advisory Board
to the American Bankers Association
Installment Credit Committee for the
Tenth Federal Reserve District.

W y o m in g N ew s

J. W . H A y , JR.
Rook Springs
W yom ing Bankers A ssociation

Wins TV Set
L. M. VanderStowe, executive vice
president of First National Bank in
Golden, won a portable television set
awarded by the Bancardchek Division
of First Financial Marketing Group of
Boston for guessing the total number
of dollars in Bancardcheks in a gold­
fish bowl.
The contest was conducted at the
Bancardchek display booth at the re­
cent American Bankers Association
convention in San Francisco. The to­
tal figure was $1,970, which, according
to Arthur R. Greene, First Group pres­
ident, symbolizes the fact that Ban­
cardchek is the checks of the 1970’s.
N o r th w e s te r n B anker, D e c e m b e r,
Federal Reserve Bank of St. Louis


Mr. VanderStowe, who has been
with First National in Golden since
1958, was previously with Valley State
Bank in Rock Valley, Iowa, where he
started his banking career in 1941, and
was later with Security National
Bank, Sioux City, Iowa.

Open New Building;
Grand opening ceremonies for the
new Aurora National Bank Building
were held last month, according to
Edward F. Hanifen, president of the
The new building features 11 tee­
shaped columns flaring from a 10-inch




Bank Presents Awards
Ray Faure, executive vice president
of the Security State Bank, Basin,
presented checks totaling $50 last
month to three families for having
the most improved homes in the city.
The checks were presented at a meet­
ing of the Basin Woman’s Club.
Periodic inspections were made by
three judges of the homes and yards
during the past summer to determine
the winners.

Centennial Medallion
C olo rad o Bankers Assn.


All four Cheyenne banks are now
selling the official Cheyenne Centen­
nial Medallion, proceeds of which will
be used to promote the Centennial in
1967. Priced at $15 each, the medal­
lions will be sold on a first come, first
served basis until the 15,000 coins are



New Director at Casper
Thomas F. Stroock has been elected
a director of the Security Bank and
Trust Campany in Casper, filling the
vacancy created by the death of H.
Pete Nagel. Mr. Stroock, 41, is the
senior partner of Stroock and Rogers,
oil and gas brokers and producers,
Casper, a director of Great Plains Life
Insurance Co., and vice president of
the Rocky Mountain Oil and Gas As­
sociation for Wyoming and South
Dakota. He was recently elected to
the Wyoming Senate on the Republi­
can ticket.




Another graduate o f
the CNB Correspondent
Banking Training Program
By Gene Huitman, Vice President, Correspondent Banking

Speaking o f
no one knows
Gene Hultman, V. P.

more about

the subject than Hap Angelo.
With three degrees and a
distinguished business and
financial teaching career (U. o f
Michigan, the Am os Tuck School
o f Dartmouth College and the
U. o f C olorado) behind him, he
joined CNB in 1963 as VP and
Director o f E conom ic Research.
N ow he’ s Cashier and in charge o f
our computer program and
the Operations Department.
So we’re ready to admit that he’ s
completed his “ on-the-job-training”
and more qualified than ever to
help you with your correspondent

Harold Angelo, VP o f Operations

banking needs. So are scores o f

Our training program takes a

other tried and true banking

while. But when we say a man s §

specialists at CNB.

ready to help you . . . he’s ready.
Federal Reserve Bank of St. Louis


D ,





T he “ B a n k T h at L ooks L ike A B a n k .” 17th


C h a m p a . M embers F .D .I.C .

N o r th w e s te r n B anker, D e c e m b e r, 1966




# T '



' '» !

Farm Factory, U. S. A.
Another bumper crop has been harvested.. .the eleva­
tors are bulging, and large numbers o f cattle have moved
from the range to the feedlot. This is."F arm Factory,
U .S.A.” ...the most efficient and productive in the world.
To build and run this modern agricultural plant, in­
creasingly greater cash flows and bigger investments
have been required. This means sound and constructive
fin an cin g.. .and we’re proud o f our close association with
the banks and bankers who have supplied the credit for
farmers and ranchers in this area.
In the year ahead, you’ll find the depth of our sup­
port confirms our sincerity in wishing for you and the
customers you serve... a most successful and prosperous
New Year.
M e m be r,

t h w e s t e r n B a n k e r , December, 1 9 6 6
Digitized Nfor
Federal Reserve Bank of St. Louis


D e p o sit In s u ra n c e

C o rp o ra tio n

activities in connection with the anni­
versary are being deferred until the
remodeling is completed. The new
project involves remodeling of the
Falk Building on Main Street. It will
be the third home for the Bank of
Brainard since it was founded Novem­
ber 18, 1886.





Exec. V.P.

C rete

Approval to Move


Earl C. Burdic
Funeral services were held last
month in Norfolk for Earl C. Burdic,
79, a well-known civic leader in Nor­
folk for many years. Mr. Burdic was
associated with his father in the Plat­
eau State Bank in his home town of
Herman until 1932. At that time he
entered the real estate business at
Norfolk. He is a past president of the
Nebraska Realtors and Norfolk Cham­
ber of Commerce.
Among survivors are his widow,
Maude, and a son, Eugene W. Burdic,
president of Malvern Trust & Savings
Bank, Malvern, Iowa.

Occupy New Building
The First National Bank in Atkin­
son opened for business November 21
in its new building, according to Leo
T. Adams, executive vice president.
Formal opening c e r e m o n ie s were
slated for a later date in the near fu­

George Miles
Funeral s e r v ic e s were held last
month for George Miles, 76, at Stockham. He was a former cashier of the
Cedar Rapids State Bank at Cedar
Rapids, Neb.

Plattsmouth Bank Opens

building. Construction was to be com­
pleted December 1. The added space
will allow for a new directors’ room
as well as other services.

Wauneta Directors
Woodrow S. Moody and Russel E.
Polly have been elected to the board
of directors at the Wauneta Falls
Bank, Wauneta. Other directors are
Wiley Green, president of the bank;
his father, John W. Green, and R. E.
A. W. Hoff, 73, a long-time director
of the Wauneta Falls Bank, died ast

Plan Brainard Remodeling
Remodeling of the Bank of Brain­
ard is being undertaken at this time,
according to Charles Novak, president,
and Louis F. Novak, cashier. The
two brothers have operated the bank
since 1928, when they purchased con­
trolling interest.
The 80th anniversary of the bank
was observed last month with an open
house at which souvenirs were pre­
sented to all visitors. Other special

The FDIC last month granted ap­
proval to the Bank of Valentine to
move from 205 North Main Street in
Valentine to 402 North Main Street,
according to Willard Lynch, executive
vice president.

Federal Reserve Report
Nebraska banks who are members
of the Federal Reserve Bank of Kan­
sas City had total assets on Septem­
ber 20, 1966, of $1,875,591,000, a gain
of more than $120,383,000, IVz per cent,
according to the November report re­
leased by the Federal Reserve Bank.
The 139 member banks in Nebraska
had total loans, including federal funds
sold, of $975,350,000, a gain of $75,216,000 over the October 13, 1965, report­
ing date. Deposits showed a gain of
$90,361,000 to a new high of $1,665,029,000. This included a drop of $10,747,000 in demand deposits from indi­
viduals and businesses, and a gain in
time and savings deposits of $80,427,000 to a total of $561,584,000.
The only other decrease noted in
the figures released was a drop of
$23,707,00 in U. S. Government obliga­
tions, which totaled $267,979,000 on
September 20, 1966.

Nebraska Governor


The newly-chartered Cass County
Bank began operations last month in
a mobile trailer unit while its bank
building is under construction at 2020
West Holdrege Street, Plattsmouth.
Officers are John Van Horne, presi­
dent; Robert H. Stillinger, executive
vice president, and David J. Duey,
cashier. Mr. Van Horne is also presi­
dent of Van Horne Investments, Inc.,

Kiwanis President
Lee Sage, cashier of the Security
National Bank, Superior, was elected
last month as president of the Supe­
rior Kiwanis Club.

Expansion at Valentine
The First National Bank, Valentine,
is expanding its present banking quar­
ters by 916 additional square feet of
floor space at the back of its present
Federal Reserve Bank of St. Louis

THE NEW FIRST FAMILY of Nebraska is the Tiemanns from Wausa, Nebr., where
N. T. Tiemann is president of the Commercial State Bank. The picture above was taken
by the N orthwestern B anker, when Mr. Tiemann was elected president of the Nebraska
Bankers Association in May, 1964. The four Tiemann children are two years older now
and even more handsome, and their father is now Governor-elect of the State of Ne­
braska. He will be sworn into office for a four-year term (the first to hold the extended
term) in January. Left to right, are: N. T. “Nobby” Jr., 11; Mary Katherine, 13; Mrs.
(Lorna) Tiemann; Governor Tiemann; Amy Eileen, 6, and Lorna Christine, 8.
N o r th w e s te r n B anker, D e c e m b e r, 1966


Il inah a News

(Ivan is cashier of The First State
Bank in Scottsbluff) selected October
28-30 as their weekend in Omaha.
Included in the prize were: Bridal
suite accommodations in one of Oma­
ha’s newest motels; unlimited week­ a
end use of a 1967 Mustang; tickets and
transportation to the Nebraska-Mis­
souri football game; all meals for the
three days at Omaha’s finest restau­ K


X T E N S IV E remodeling of the that this is a long awaited dream of all
South Omaha Stockyards Bank its employees and with the complete
was announced last month by Donaldnew appearance it will provide addi­
tional space in all areas of the bank.
J. Murphy, president, and the board
Completion plans are scheduled for
of directors. He said the W. Boyd
Jones Company bid was accepted and late spring or early summer.
* * *
signed for plans that call for a new
front entrance and a complete revamp­
Mrs. Lucy Gunderson of Lake Platte
ing of the inside of the bank.
View, Waterloo, Neb., won the $500
Changes will include a complete scholarship offered during First Na­
new teller counter and rearrangement tional’s “ Salute to Education” promo­
of officers’ desks. The inside furnish­ tion. Seated awarding the prize is
ings and decor have been carefully Harry W alker II, who recently came
chosen to provide a restful but not to First National Bank from the Wells
monotonous atmosphere. The bank’s Fargo Bank in Sacramento.
Mrs. Gunderson and her husband,
management followed a pattern of
keeping the best of the old while add­ Frank S. Gunderson, d iv id e d the
ing the best in new facilities. With money equally between their two
the complete renovation of the pres­ grandsons, Mark A . Schere, 12 years
ent banking quarters and the new en­ old, and Scott D. Sphere, 8, of Cres­
trance into the bank, it will bring a cent, Iowa, to start their college fund
“new look into the heart of the stock- with a savings account from First
yards” and should be well accepted by National Bank of Omaha.
* *
the bank’s customers, Mr. Murphy
Last spring at the Nebraska Bank­
said. To further enhance the beauty
of the area a large planter will grace ers Association convention The United
States National Bank held a sweepthe opening.
With the merger of the South Oma­ stakes drawing in its hospitality room.
ha Bank and the Stock Yards National The prize, a “Wonderful Weekend in
Bank, limited space has created its Omaha” for two, was won by Mrs.
problems and Mr. Murphy remarked Faye Troy of Scottsbluff. The Troys


NEW ENTRANCE for South Omaha Stockyards National.
r th w e s te r n B anker, D e c e m b e r, 1966
Digitized for
Federal Reserve Bank of St. Louis


FAYE and Ivan Troy accept keys to their
Mustang from Howard W. Nieisen, a.v.p.
of U. S. Natl. Bank.

rants; free barber and beauty shop
services; theater tickets; flowers, cham­
pagne; breakfast in bed; etc., etc.
On hand to welcome the Troys were
Howard W . Nielsen, assistant vice
president of U. S. National’s corre­
spondent bank division, and Robert 1).
Satrapa, assistant vice president and
advertising manager, who handled the
* *
Donald J. M urphy, president, South
Omaha Stockyards National Bank,
with the assistance of Miss “ Sunny”
Durham, this year’s Queen of Ak-SarBen, presented to Newell & Oberg
Ranch, Agate, Neb., a trophy for the
latter’s exhibit of the grand champion
calves at Omaha’s Annual Calf Show.
As a service to the livestock industry
and to help encourage breeding of su­
perior cattle, each year’s winner will
receive a replica of the large trophy.
The large trophy is on display in the
lobby of the bank and will have each
year’s winner’s name engraved on it.
* * *
Roy N. Crosley, charged with rob­
bing the United States National Bank
of $3,489 June 17, was found guilty by
a jury in Federal Judge Richard E.
Robinson’s court last month. Senten­
cing was deferred to a later date.
Federal Reserve Bank of St. Louis


M en do not often take the opportunity to put aside the affairs of
business and lift their eyes to the larger view. When the time presents itself
we realize how fortunate we are in having many good friends and
associates throughout the Midwest. W e hope that each and every one of you
be blessed with the peace and jo y of Christmas all year long!


N o r th w e s te r n B a n k e r, D e c e m b e r, 1966


Nebraska News

M iniature M od el T Given Mil/ Mtiinh

THE HALF-SIZE 1910 Model “ T” Ford shown here with Nancy C. Allis, teller for The
First National Bank of Omaha, was utilized for promotional work in connection with the
First Charge Department of the hank. It was left on display in various shopping cen­
ters with leading First Charge merchants throughout the city of Omaha. Over 5,000
entries were submitted in one weekend alone in the drawing for the winner of the car.
The drawing was held last month.

Sixty-one members of the United
National Bank staff recently
completed the Action Course in Practi­
cal Politics offered by the bank. The
course is sponsored by the United
States Chamber of Commerce. These
61 men and women bring to 89 the
number of U. S. National employees

t h w e s t e r n B a n k e r , December, 1 9 6 6
Digitized Nforo rFRASER
Federal Reserve Bank of St. Louis

who have completed the course, the
largest total among other Omaha-area
banks. A pilot course was held earlier
to stimulate interest among officers
and supervisors.
Response to the offered course was
so great that four discussion groups
were established, using “graduates” of

the pilot course as instuctors. In­
structors for the four sections were:
Robert W . Hasebroock, vice president;
George E . W inslade, vice president
and trust officer; Gary F. Sibert, as­
sistant vice president, and W illiam
E . Clark, assistant cashier.
The program will be conducted
again next year, a bank official an­
* * *
Following the regular November
board of directors’ meeting, W . B.
Millard, Jr., chairman, made the fol­
lowing announcement:
The board declared a dividend of
27% cents a share, payable December
15, 1966, to shareholders of record as
of the close of business on December
2, 1966.
In addition, the board declared a
special dividend of 30 cents a share,
also payable on December 15, 1966, to
shareholders of record as of the close
of business on December 2, 1966.
The board also expressed the hope
that earnings would permit an annual
dividend of $1.20 per share, payable
quarterly, in 1967.
* * *
The Omaha National Bank gave
Boys’ Town a $20 compound interest
note issued by the United States in
1864. The gift was part of the bank’s
Centennial observance. The unusual
note has been appraised at $1,600, ac­
cording to a bank spokesman.
Already in Boys Town’s collection
are the other notes in this series—the
$10, $50 and $100 denominations.
* * *
Pictured here is Carl W ashburn,
who promotion to assistant vice presi­
dent in the data
processing d i v ision of The First
National Bank of
Omaha w as an­
n o u n c e d in an
earlier issue.
Mr. Washburn
received his B.S.
degree from Corn e 11 University
and sin ce then
C. W A S H B U R N
has spent most of
his working career with National Cash
Register Company, first in Chicago,
and later in Omaha. He joined the
bank June 1, 1964.
* * *
No baby should go two years with­
out a name, and the Henry Doorly
Zoo’s new African elephant is no ex­
Zoo officials announced last month
that the newcomer has been named
“Malika,” a Swahali word meaning
“Little Angel.” The name was se­
lected from about 1,500 entries sub-


Thanks to you
our year has been busier than ever.

Don R. Ostrand
Vice President

Merv. Aegerter
Asst. Vice President

Bob Brown
Asst. Vice President

Ralph Peterson
Vice President

Don Miller
Special Representative

During this year we’ve helped solve a lot of problems. W e’re
glad you asked us. W e’re proud that our staff is experienced and
versatile enough to handle the toughest problems relating
to investments, livestock, equipment, small or large
business and city, town or farm business. W e’re even happier
that so many of you called on our services. Because at the
First, our main concern is service. Service to you and
your customers. Our hope now is that we will be working
even more closely with you during the coming year.
W e wish you a joyou s Holiday Season and a profitable N ew Year.
Federal Reserve Bank of St. Louis

M em ber Federal D eposit Insurance Corporation

Always the First to Serve You.
N o r th w e s te r n B anker, D e c e m b e r, Î9 6 6


Nebraska News
executive vice president, it was an­
nounced last month by B. M. DeLay,
president of the Norfolk bank.
Mr. Mohl will remain on the board
of directors of the First State Bank.

Banks also are continuing sale of
the first souvenir medal which sells
for $1 and has been available for some

DeLay Bank Has Open House
Third Anniversary
Refreshments were served to visit­
ors at the David City Bank last month
on the occasion of the bank’s third
anniversary in that city. It was relo­
cated to David City in November, 1963,
by a transfer of the Ulysses State
Bank charter from Ulysses. Lester
E. Soubs, president, said assets have
grown from $819,561 at that time to
their present total of $2.4 million.

PETE MARR (left), Kathleen Ryan and
Dr. Warren Thomas.

Centennial Medals on Order

mitted in a contest sponsored by The
Omaha National Bank.

Winner of the contest was 12-yearold Kathleen Ryan, daughter of Mr.
and Mrs. Tom Ryan of Lincoln. Neb.
Pete Marr, the bank’s advertisingpublic relations officer, presented Kath­
leen a $100 United States Savings
Bond. Dr. Warren Thomas repre­
sented the zoo at the ceremonies.
The Omaha National presented the
female elephant to the zoo in August
as part of the bank’s Centennial cele­
bration. The 850-pound “baby” cost
$5,000 and will eventually stand nine
to 10 feet high at the shoulder and
weigh-in at four and one-half to five

Joining Norfolk Bank
Elmer E. Mohl, president of the
First State Bank of Newcastle, Wyo.,
will join the DeLay First National
Bank of Norfolk about January 15 as

The Nebraska Centennial Commis­
sion is taking orders at this time from
Nebraska banks for three Centennial
Medals that will go on sale in the
month of December. Each of the med­
als will be sold by the banks at a
price 50 cents to $1 higher than they
pay for them. The extra money from
each sale will go to the County Cen­
tennial Commission for its activities.
The first medal is the official Silver
Nebraska Centennial Commemorative
Medal. Only 10,000 of these will be
available. Banks sell these for $10.
The second is the Bronze Nebraska
Centennial Commemorative Medal.
This is the same as the silver medal
but will not be serially numbered.
The third is the Bronze Nebraska
Centennial Commemorative Medallion,
of the same design as the first two
medals, but in a two and three-fourths
inch size.

' . . . and a n oth er


Edwin V a n

H orne

John V an H o rn e

More than 8,000 cu sto m e rs and
friends of DeLay First National Bank,
Norfolk, visited the remodeled and ex­
panded bank building last month dur­
ing the one-day open house on a Satur­
day. The beautiful new interior was
enhanced by 144 floral bouquets from
banks and Norfolk businessmen.
President B. M. DeLay and other
officers and directors greeted the vis­
itors and assigned them to tour guides
who took them through the bank. A
special party for bankers attracted a
group of 400 bank officers from north­
eastern Nebraska and many metropoli­
tan centers.
A special bouquet was one delivered
to J. J. DeLay, 83, board chairman,
and it was made up of 60 red roses
and one white rose, each flower com­
memorating a year that Mr. DeLay
has been in the banking business.
Carnations and key chains were
given as souvenirs. More than 2,000
balloons were distributed to young­
sters, and background music was pro­
vided by several local organists.
By incorporating the building space
adjoining the original bank, the De­
Lay First National has doubled its for­
mer space. This provides, among other
things, for an entirely new small loan
department. The exterior of the two
buildings has been unified with a fac­
ing of smooth New Mexico lava rock,
a nine-foot band at street level of man­
ufactured black granite, full glass
front, and upper windows shaded by
vertical aluminum vanes.
The interior has walnut paneling,
gold formica surfaces, mint color vinyl
wall covering, ceramic tiled pillars,
and a lava stone interior wall with its
color brought out by the use of green
The DeLay First National Bank first
opened for business December 20, 1930.
A year later the name was changed to
DeLay National Bank, and several
years ago the word “First” was incor­
porated to form the present name. J.
J. DeLay was one of the organizers
and headed the bank. His son, Ber­
nard, is now president. Paul Zutz,
executive vice president, has been
with the bank 36 years.

i n v e s t m e n t s #• I n c .





PHONE 345-2241

Over 70 years of banking and investment experience
th w e s te r n Banker, D e c e m b e r, 1966
Digitized Nfor
Federal Reserve Bank of St. Louis








Number 1 SERVICE to match the Number 1 MARKET
No one is as close— physically or in business
experience— to the world’s NUMBER 1
livestock market as the South Omaha Stockyards National Bank. We live with this
business every day. So when it comes to
banking transactions that involve the live­
stock industry, we can give you NUMBER
1 service to match the NUM BER 1 market.
Call Frank Sibert, vice president in our
Correspondent Bank Department. That’s
Frank, in the picture above !
Federal Reserve Bank of St. Louis

Member of the Federal Deposit Insurance Corporation
N o r th w e s te r n Banker, D e c e m b e r,



Nebraska News

Hank Fi mi ht-iitif Ms M'linnifinif
To M eet Dieir M
m r in in if Miema mis


ORE than 400 persons interested evidence continues to point to in­
in a better agriculture for Ne­ creases of around $14-$15 billion in
gross national product in the third
braska attended two Agricultural Sem­
inars at North Platte and Lincoln and fourth quarters of this year. With
early last month. Sponsored by the this kind of an increase, gross nation­
Nebraska Bankers Association in co­ al product for this quarter can be ex­
operation with the University of Ne­ pected to be at an annual rate of about
braska department of education and $761 billion. With defense spending
cooperative extension service, it drew accelerating at a rapid pace, the na­
bankers, vocational agriculture in­ tional economy is likely to remain
structors from high schools, county strong with resources tight and costs
extension agents and personnel from rising. Under these conditions, de­
mands for credit are likely to remain
the University Ag College.
The gist of the talks from the 13 quite strong.
Although there is variation region­
speakers was that Nebraska agricul­
ture, and that of the midwest, is far ally and by type of farm, the farm
from dead; in fact, has an even situation in Nebraska has shown sub­
brighter future when viewed in the stantially more improvement than for
perspective of population food de­ the nation. Higher cattle prices and
mands and the means for production improved production have been a real
in years to come. Omaha and Lincoln help to the Nebraska economy during
bankers gave important pointers on the past two years. It now appears
loans, management practices and rec­ as if cash receipts for the state may
ord-keeping by farmers. Several of be up a fifth this year over last year’s
them emphasized the importance of levels.
Because of the relative importance
new lending developments to keep
pace with changing financial demands of the meat animal industry in Ne­
braska, the livestock situation is of
of the agricultural industry.
crucial importance to the state. For­
Excerpts from the talks follow:
tunately, the outlook for meat animals
continues to be favorable.
Raymond J. Doll, vice president and
senior economist, Federal Reserve
J. Carroll Bottum, assistant head,
Bank of Kansas City:
The general economic situation con­ Department of Agricultural Econom­
tinues to remain quite buoyant. Most ics, Purdue University, Lafayette, Ind.:


MORNING SPEAKERS at the Ag Seminars were, left to right: Seated—Raymond J.
Doll, J. Carroll Bottum and Thomas J. Aron. Standing—Walter E. Nolte and H. Keith
r t h w e s t e r n B a n k e r , December,
Digitized for
Federal Reserve Bank of St. Louis


While there is a recognized food
deficit in the world and while there
appears to be a concensus by both the
citizens and Congress that we should
supply food in time of disaster, there
is not a clear concensus of how far we
should go in making up a continuing
deficit for the low income food deficit
countries. What we decide about this
will influence our exports in the years
It seems to me that we will be fac­
ing an agriculture in Europe which is
improving its efficiency rate rapidly or
about the same as we can expect to
improve ours. N e v e rth e le ss, this
should still leave us as a lower crop
producing cost area than Western Eu­
rope because of our present high levels
of efficiency even recognizing the dif­
ferences in the price structure. Rough­
ly, they are now about where we were
25 years ago in the efficiency or output per man.
W alter E . Nolte, executive vice pres­
ident, First National Bank & Trust
Company, Lincoln:
Banks and farms in Nebraska must
be partners in progress and the continuecl changing picture in banking
must continue to parallel or pre-date
the needs of agriculture, for the cities’
prosperity, for the industrial custom­
er’s prosperity and for the bank’s suecessful continuation in existence.








National and international events
seem to propose an increasingly sig­
nificant role for Nebraska’s soil in the V
future of the world. Its potential can­
not be realized without the persistent
changes required of financial and ag­
ricultural entities to stay abreast.
Dr. James G. Kendrick, associate pro­
fessor of agricultural economics, Uni­
versity of Nebraska, Lincoln:
To summarize the points that have
been made, it would seem that: (1)
terminal markets and associated feed­
ers and packers will continue to com­
mand a shrinking relative share of the
market. Alternative methods of trans­
portation, the production of small vari­
able quality lots, and older, less effi­
cient plants seem to be the cause. The
trend might be reversed through alter­
native marketing organizations — a
pooling system would be one example;
(2) the cost and capacity structure of
the packing industry dictates a level
of operation near plant capacity.
Plants with inadequate financing, and
faced with suppliers that insist on
higher than average prices for their
animals, face a bleak future; (3) the
increasing pressure for more accurate



Federal Reserve Bank of St. Louis


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National Bank of Commerce
M E M B E R F.D. I. C.


L i n c ol n , Neb r a s ka 68501


D ecem ber,



AFTERNOON SPEAKERS at the Ag Seminars were these
representatives of Omaha and Lincoln correspondent banks,
and the Seminar chairman. Left to right: Frank J. Sibert,
Lester Curran, H. Keith Newton, Thomas J. Waldo, Wayne
M. Thorndyke, M. F. Aegerter and David R. Johnson.

evaluation of the livestock product
will force selling on a carcass basis.
The changes that will be coming to
the livestock industry seem clear.
Fiscal Records and
Financial Counseling
Robert E . Johnson and David R.
Johnson, vice presidents, The Omaha

National Bank, Omaha:
In our shop we are beginning to
think in terms of cash flow projec­
tions, operating budgets and much
more frequent financial statements.
The good old days of visiting with
our agricultural customers once a
year and taking one financial state­
ment and then flying by the seat of
our pants for the balance of the year
are rapidly disappearing.
We are seeing many banks, partic­
ularly some of the large city banks,
becoming involved with some severe
problems by attempting to continue
financing agriculture on the old basis.
With the rapid developments of
technology and the large amounts of
money needed, the old rules of debt-toworth ratios and working capital must
of necessity be adjusted; however, you
and I both know that when we deviate
too far from these old tried and true
rules, we ultimately wind up in trou­
In the not too distant future, our
bank and others will have computer
record keeping available for our agri­
culture and livestock customers. We
must begin now to lay the groundwork
for that time. If we do our work prop­
erly, we can be a part of the tremen­
dous future ahead for agriculture. If
we do not do our job now, Big Broth­
ers in Washington will fill the “vacu­
um” with new programs.
Operational Loans
W ayn e M. Thorndyke, vice

dent, The United States National Bank
of Omaha:
It should be pointed out that a new
type of operating loan has emerged
from our changing agriculture. These
th w e s te r n B anker, D e c e m b e r, 1966
Digitized for
Federal Reserve Bank of St. Louis

loans have developed because of the
capital requirements resulting from
further specialization and mechaniza­
tion of farms. They would include the
funds needed for such items as farm
machinery, irrigation systems, feedlot
automation. These are loans which
must be paid out of net income rather
than gross income. And, these loans
are by nature longer than one-year
The need for operating capital loans
of this kind, as well as for operating
expense loans, has created some of our
basic problems in the handling of agri­
cultural credit. The businessmanfarmer of today needs “package”
financing. This is the coordination of
all types of credit needs—short term,
intermediate term, and long term—
into one program. Banks can and do
provide this complete financial service
at one location.
This does not mean, however, that
all of the borrower’s capital needs
are thrown together into a single
short-term or long-term loan. Each
of these different types of credit
should be clearly identified. Each
type has different characteristics, each
is extended for different purposes, and
each should be repayable on different
maturity dates.
The changes in farming have dic­
tated the changes that have been tak­
ing place in lending practices. This
has brought a shift from collateral
lending to income lending, and budgets
and cash flow information are a must.
The day is past when a banker can
base his credit decisions on the basis
of the security offered. Security is im­
portant, but no matter how much se­
curity you have, it is not a good loan
if the farmer is not able to make the
payments required.
Trust Services
Thomas J. W aldo, vice president,

tional Bank of Commerce T&S, Lin­
The basic purpose of a trust depart­
ment is to manage money matters for

people or business entities who are
either unable, unwilling, or legally
prohibited from doing it for them­
selves. Specifically, such management
must be in accordance with the direc­
tions imposed by the creator of the
Because of tax savings, flexibility
and protection, the trust arrangement
is the most valuable, the most versa­
tile and the most widely used property
arrangement in estate and income
planning work today.
Intermediate Credit
Machinery and Equipment
Mervin F. Aegerter, assistant

president, The First National Bank of
Most machinery and equipment
loans are made on the basis of 30 to
40 per cent of the list price being re­
quired as down payment and then the
balance divided for the length of the
term required. Oftentimes the tradein value of the used machine will qual­
ify for the down payment. In a diver­
sified farming area payments can be
made oftener than once a year because
of the fact that the farmer will have
hogs or cattle to sell or a cash wheat
crop in July or later in the season corn
or beans.
Costs of owning and operating ma­
chines have climbed 58 per cent since
1947 while custom rates have risen
only 11 per cent. This clearly indicates in some cases that rather than
make a marginal machinery loan it
may be much wiser to make a short
term operating loan to include the cost
of custom hiring. Making the right
decision between owning machinery
and hiring custom operators can make
a big difference in a farmer’s net in­
come. Annual cost of ownership is
estimated at 15 per cent of their ma­
chine’s original cost. This estimated
percentage includes depreciation, in­
terest, repairs, taxes, insurance and
B A N K F IN A N C IN G . . .

(Turn to page 78, please)










Meet our Five Earnest
Federal Reserve Bank of St. Louis

Here you have Earnest Harris Laing, Earnest Joe
Bartels, Earnest Jim M iller, Earnest Stan Lee and Earnest
Je rry W ard. Besides being earnest, they're ready, w illin g
and able to fu lfill your government and municipal bond
needs. These men, constantly in touch w ith the bond
m arket, provide the fast, efficient, personal service you
get at Commerce Trust.
For all your bond requirements, do as hundreds of
other banks do, contact the earnest Bond Department of
Commerce Trust.


(ommerce Jrust (ompany
Kansas City's Oldest and Largest Bank
Member Federal Deposit Insurance Corporation

N o r th w e s te r n Banker, D e c e m b e r, 1966


cial investment are being offered by
the University of Nebraska Extension
Service. The advanced common stock
investment course is held on Tuesday
evenings at 7:00 p.m. in the Social
Science Building. The data processing
course is an introduction to punch
card accounting machines and is of­
fered in eight sessions, held each Tues­
day at 6:30 p.m. in Nebraska Hall.

NEW electronic computer proc­ ing of the business on the computer
essing package is being intro­ follows, and updated account informa­
tion and other essential reports are
duced to Nebraska banks by First Na­
tional Bank & Trust Company of Lin­ returned to the bank the same night.
coln, according to Burnham Yates,
Among the numerous advantages as
outlined by First of Lincoln are reten­
The new PAM system (Proof-Ac­ tion of all types of bank items on the
c o u n t i n g Ma ­ bank’s premises, development of in­
c h i n e ) u s e s a formation for computer processing as
p r o o f -accounting a by-product of the proving operation
machine to which so that no extra handling is required,
is attached data and important cost advantages to the
capturing equip­ local bank.
ment in the local
* * *
bank. As items
Frank J. Sibert, vice president of
are p rov ed , the
South Omaha Stockyards National
necessary data on
Bank, Omaha, spoke on livestock loans
checking accounts
at a meeting of the Cornhusker Con­
are captured on
ference of NABAC at the Cornhusker
paper tape. These
Hotel last month.
data are transmitted to First of Lin­
* * *
coln’s computer facilities in Lincoln
for persons in­
over ordinary telephone circuits at
the close of the business day. Process­ terested in data processing and finan­


(Continued from page 76)
housing. Penn State engineers give
this rule of thumb to determine when
mechanization pays, “Mechanization
is a good investment if costs are no
more than five times the amount of
labor saved in a year.” This formula
allows 10 per cent for depreciation of
equipment, 5 per cent for interest on
the value of equipment, and 5 per cent
of original costs for all other costs.
Having p e r s o n a l strong feelings
leaning toward the livestock business
I think, personally, that bankers
might consider financing beef cows
for as long as 36 to 60 months—just
like they do cars, trucks or farm ma­
chinery. The longevity of a cow is
better than that of an automobile. She
doesn’t go out of style nearly as fast
and she has only one speed and her
chances of survival are far greater.
Furthermore, she produces income
where the average car is an expense.
Livestock Loans
Lester Curran,

vice president, First

r th w e s te r n B an ker, D ecem b er, 1966
Digitized for
Federal Reserve Bank of St. Louis

National Bank & Trust Company, Lin­
coln, and Frank J. Sibert, vice presi­
dent, The South Omaha Stockyards
National Bank, Omaha:
I do want to mention a couple of
points that I feel you should be stress­
ing to your students and cooperators
which will be of assistance to the
credit man who is advancing money
on livestock.
The first thing I want to discuss is
farm records. I want to call your at­
tention to the fact that the use of
farm records is becoming more and
more important in the agricultural
lending field and this is especially true
in livestock lending. The days of
lending a man money because he is a
good citizen in the community is not
gone, but in addition to being a good
citizen it is necessary that a credit
man know that the borrower can take
the tools of capital and make them
work. The way to do this, of course,
from the borrower’s standpoint is to
have an accurate, complete, up-to-date
set of records that he can show to
his credit man and prove in black and
white that his livestock enterprise and

* ^ *
The board of directors of the Na­
tional Bank of Commerce has an­
nounced the promotion of Paul R.
Scott from auditor to assistant vice
president. Mr. Scott’s new position is
systems analyst in NBC’s expanding
computer services department. Sueceeding him as auditor is Larry L.







Mr. Scott joined NBC after gradua­
tion from the University of Nebraska
in 1953. Mr. Nelson has worked in the
NBC auditing department since his
graduation from the University of Ne­
braska in 1963.




other enterprises have been making
money in the past and will continue
to make money in the future.
Secondly, you folks are going to
play a vital role in assisting farmers
and ranchers in taking the tools of la­
bor and capital, putting them together
in a mix, and making them pay off in
dollars and cents down through the S i’
Outlook for Freedom
Allan B. Kline, Western Springs, 111.,

past president of American Farm Bu­
reau Federation:
The people of America believe in the
Constitution. They are for private en­
terprise and the free market. We are
a self-reliant and a productive people.
Look at the record.
Let us not be seduced by power hun­
gry politicians with promises of easy
money, or something for nothing.
Now is the time to make up our
minds to preserve for ourselves and
our posterity the blessings of liberty
by disciplining ourselves and our government. It is still ours. So is the
responsibility.— End.




S. T ru s t Company of Lincoln
12th & N Street —Lincoln, Nebraska
Federal Reserve Bank of St. Louis

Member: F.D.I.C.
N o r th w e s te r n B anker, D e c e m b e r, 1966


On State School Board

Nebraska Farm V alue

Gene C. Eaton, 42, senior vice presi­
dent of the National Bank of Com­
merce T&S, Lincoln, has been ap­
pointed by Nebraska Governor Frank
Morrison to a six-year term of the
State Normal Board, succeeding Henry
Freed of Chadron. The board super­
vises state colleges at Chadron, Wayne,
Kearney and Peru. Mr. Eaton, a Re­
publican succeeds Mr. Freed, also a
Republican. The new term begins
January 1, 1967, and must be con­
firmed by the legislature when it con­
venes in January.

The United States Department of
Agriculture reported recently that as
of last March, the 76,000 farms in Ne­
braska have a land and building value
of $5,670,000,000. This is a $446,000,000
increase, or 7 per cent, over the pre­
ceding yearly report. The average
farm is valued at $73,600, triple that
of 1950 and $12,000 more than just
two years ago.
Since 1964, Nebraska’s total farms
have dropped from 80,163 to approxi­
mately 76,000.

Joins Harris Trust
Warren F. Prince has joined Harris
Trust and Savings Bank, Chicago, as
vice president and administrator of
the information systems division in
the operations department.
For the past five years, Mr. Prince
has been Manager of the midwest
region, General Electric Company
computer department, in Chicago.
Prior to this he served this depart­
ment in various capacities, beginning
with the original computer installa­
tion at the Bank of America in Cali­

JYvtrspaper A ds

(Continued from page 31)
ment, cultural and educational com­
mittees, and special events have a con­
tinuing need for the right kind of
manpower. Bankers of our area are
in the forefront in many of these proj­
ects now. But we can make our own
task easier and supply a better bal­
ance of leadership if we’ll make use of
our “fountain of knowledge” and find
those treasured people in our commu­
nity who can and do respond willing­
ly. All of us know there is a good res­
ervoir of such people. It’s up to us
to help find them and get them “on
the team.”
Motivate Own Bank Staff

Relating community relations as a
SERIES of 14 illustrated bank bank function is a matter of staff ori­
advertisements has been prepared entation and periodic review. Start­
by Farm Business Council. They areing with the president, entire officer
shown in a special brochure titled staff, and board members we try to
“ Pixure Ads for 1967.” They can be be alert, aware, and aggressive. We
used in newspapers or other media.
feel this philosophy is contagious and
The ads can be purchased for as like to think our entire personnel op­
little as $5.00 each for reproduction erate on the theory that what’s good
rights (mats are $2.00 extra). They for our city is good for our bank. We
can also be used in the bank’s im­ believe our customers feel we have a
printed mailing of The Farm Picture. genuine enthusiasm for our city and
A copy of the brochure and com­ hence for our entire business commu­
plete information on the ads, which nity.
There are many original and proven
cover principal bank services, may be
obtained from Farm Business Council, ideas that are used effectively in build­
ing customer and community rela­
P. 0. Box F, Urbana, Illinois 61801.


o r th w e s te r n B anker, D e c e m b e r, 1966
Digitized forNFRASER
Federal Reserve Bank of St. Louis

tions. It’s important to remember
that generally, commercial banks of­
fer the same services. It follows rea­
sonably that our image in the commu­
nity will develop from our ability to
be distinctive and different. A word
of caution—along the lines of promo­
tions—we must remember that bank­
ing services should always have a
quality of dignity and good taste. This
leaves plenty of room to the bank
with a real desire to be both interest­
ingly individual and a source of pride
in its community.
Banking has come a long way in
the field of community relations in
recent years. Willingness to accept
change, as opposed to the old philos­
ophy of bankers “status quo,” is generally now the story. New, modern
banking methods spearheaded by for­
ward thinking bankers have changed
the image. No longer are we the
dour, old foggies of the cartoon age
but rather hard chargers both for our
banks and for our communities.
Summ ary

In summary, community relations
in a bank are what we make them
ourselves. The principles which ap­
ply in our contacts to bring customers to our bank should also govern
our efforts to bring good will to our
community. Here again we think of
sincerity and fr ie n d lin e s s , which
might be called the frosting on the
cake of banking “know how” and cornunity spirit.
To be effective, let’s remind our­
selves continually to be alert to opportunity, to be aware (with specifics)
of what we have to offer, and to be
aggressive in our efforts to attract peo­
ple to our individual banks and com­
This is the challenge to bankers to­
day. Many are already leaders in this
field. More are needed to stimulate
original and positive thinking. The
image of banking will be greatly af­
fected by the quality of our response
to this challenge.— End.












Our new

DC-9 j e t

is the strong, silent type
It all began w ith
sm ooth, p ow erful
on the plane. So
You w h isk ahead

the Douglas people. They took a pair of
je t engines . . . and m ounted them far back
w h a t little sound there is, is left behind.
of it at 560 miles an hour.

So it's very q uiet aboard Ozark D C -9 Jets. A lm ost silent.
You enjoy your continental breakfast more . . . your cocktails
and snacks. Sure, read if you like. But w e th in k catching a
fe w w in ks of sleep is probably the best w ay to enjoy the
quiet. The quiet the Douglas A ircraft Com pany b u ilt into
the D C -9 Je t that Ozark brought to M id-A m erica. G o-getters
go Ozark A ir Lines . . . quietly.

go-getters go
See? The tw o Pratt & W hitney jet engines are in the rear. Y ou fly
ahead of the sound all the way.









OC 9 J E T S
by Do ugl as

O zark D C -9 Je ts n o w s e rv in g : C e d a r R a p id s , la ., C h ic a g o , III., D e n v e r . C o lo ., K a n s a s C ity , M o ., M i n n e a p o l i s / S t. P a u l, M in n ., M o lin e , III./
D a v e n p o r t , la ., P e o ria , III., S t . L o u is , M o ., S io u x C ity , la ., S i o u x F a lls , S . D ., S p rin g fie ld , III., S p rin g fie ld , M o ., T u ls a . O k la ., W a te rlo o , la.
Federal Reserve Bank of St. Louis

N o r th w e s te r n Banker, D e c e m b e r, 1966


m ode //ta n
/a in


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c a / t t e d f id t e n d d m A o d e / o y a / / y a n r /

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d ftr ir / o fi

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o f i a / r m t / a n / A a fiifitn e d d . . .

a JV em

o fi/te a c e a n d / t d o - d f ie it / y .

r th w e s te r n Banker, D e c e m b e r, 1966
Digitized for
Federal Reserve Bank of St. Louis

/ / t i t 'd / m a d
//e -a d



Open West Bend Facility
I o w

The Iowa State Bank, West Bend,
opened its new drive-up window last
month. It will be open during regular
banking hours.



Observe 80th Year



S e creta ry

Des Moines
Des Moines

Kaionu Hunk Control Sold
Featured speakers for the forum in­
ONTROLLING interest in the Kalona Savings Bank, Kalona, has cluded: P. A. Mack, agriculutral loan
been sold by V. D. Hochstetler andofficer for the Harris Trust and Sav­
interests to a group consisting of John ings Bank, Chicago, and Herb Howell,
W. Evans, Earl Nelson and John Gra­ extension economist from Iowa State
ham, all of whom are associated with University, Ames.
the Hawkeye State Bank, Iowa City.
On January 2, 1967, Ray L. Hen­ Estherville Brochure
drickson will resign as vice president
An attractive brochure has been
and cashier of the Peoples National published by the Iowa Trust and Sav­
Bank, Columbus Junction, to accept ings Bank, Estherville, on the occasion
the position as president of the Ka­ of the bank’s 40th year.
lona bank.
Illustrated with pictures of Francis
Mr. Evans is the owner of Cashway
Shadle, president, and the other
Lumber Stores, headquartering in
officers of the bank, the brochure
Mason City, and a vice president of the
Hawkeye State Bank; Mr. Nelson is points out present-day services and
the fine growth made by the bank
president of the Hawkeye State Bank
since 1926. Deposits at year-end in
and of the First State Bank, Thornton.
1950 were $3,933,000. Today, deposits
Mr. Graham is chairman of the Hawkeye State Bank and president of Leas­ exceed $10,382,00.
ing, Inc., Des Moines.


Honor Melvin Banker
New Allamakee Officers
John C. Shover, Jr., cashier of the
Citizens State Bank, Postville, has
been elected president of the Allama­
kee County Bankers Association.
Named to assist Mr. Shover was vice
president, James Campbell, assistant
cashier, Farmers & Merchants Sav­
ings Bank, Waukon, and secretarytreasurer, Harris A. McKee, Kerndt
Bros. Savings Bank, Lansing.

Thomas E. Benz, president of the
Melvin Savings Bank, was honored
last month for his 50th anniversary
in the banking business. Stockholders,
directors and employees of the bank
attended a special dinner in Mr. Benz’s

The Farmers and Merchants State
Bank observed its 80th year in Neola
last month, according to T. L. Hall,
president. The bank was incorporated
in 1893 after being started in 1886.

Arlington Bank Gift
The Arlington State Bank has pre­
sented pocket dictionaries to students
in grades 4 through 9. Each class
room was also presented with a cal­

Approve Oskaloosa Facility
A parking lot facility was approved
by the Iowa Banking Board for the
Mahaska State Bank, Oskaloosa, at
the November board meeting. The
facility will be located at 122 First
Avenue East.
The board has previously approved
a facility for the Iowa Trust and Sav­
ings Bank in Oskaloosa.

Honor Decorali Banker
Ray W. Kaster, retired Decorah
banker, was honored recently for 50
years membership in the Decorah
Masonic Temple.

Polk City Open House
The Polk City Savings Bank ob­
served its 63rd anniversary last month
by holding an open house for the pub­
lic. Free gifts, coffee and cookies were

Iddova Construction Sturts

Jefferson Open House
Open house was held last month by
the Jefferson State Bank, Jefferson,
in observance of its extensive remodel­
ing. A highlight of the opening was
the showing of a series of color slides
illustrating bank premises of the past.
A special feature of the new struc­
ture is a community room, which can
be completely isolated from the main
bank. A i:Jefferson” motif is being
used with both Thomas Jefferson and
the City of Jefferson as the theme.

Harlan Farm Forum
A forum for farm customers was
sponsored by the Shelby County State
Bank in Harlan last month, according
to Rand Peterson, vice president.
Federal Reserve Bank of St. Louis

NEW BUILDING for First National Bank of Eldora.

has started on the used in the construction. Drive-in
new building for the First Nation­ facilities and off-street parking will be
al Bank of Eldora. It will be locatedprovided. A special feature of the
on the former First Baptist church building will be a 21 by 76 foot com­
munity room.
The First National Bank opened in
The exterior will measure approxi­
mately 76 by 41 feet. Extensive use Eldora in May, 1965. An office is main­
of glass and colorful brick will be tained in Steamboat Rock.
o n s t r u c t io n


N o r th w e s te r n B anker. D e c e m b e r, J966


Iowa News


SPEAKERS at the 24th annual Feeders Banquet sponsored by Council Bluffs Savings Bank are shown in photo at left. From left
to right are: Lew W. Ross, chmn. of the bank board; E. H. (Shorty) Shoemaker, Jr., and Ray Monsalvatge, program speakers, and
Ed H. Spetman, Jr., president of the bank. RIGHT—Connie Timm and Sandra Trede receive cash awards from the bank for 4-H
livestock champion activities, presented by Dale Shires, county extension service. Miss Trede was exhibitor of the Grand Cham­
pion Steer at the West Pottawattamie County 4-H Club Show. Miss Timm was exhibitor of the Reserve Grand Champion.

Tells Western Iowa Feeders

P resent Siffns Paint in
ta ttle
B rices A fter
hundred cattle feeders
from western Iowa were told last
month, “We must determine to maxi­
mize efficiency on our farms and bank­
ers must be determined to supply the
capital needed to perform this task.”
The speaker was L. W. Ross, chair­
man of the board, Council Bluffs Sav­
ings Bank, in his opening remarks
greeting the farm operators to the
bank’s 24th annual Cattle Feeders’
Banquet. He listed four needs of
farms today as: 1. Higher capital re­
quirements of fixed and operating ex­
penses. 2. Scarcity and high cost of
farm labor. 3. Desire for efficiency
and conveniences. 4. Desire to live
more like people in the city with time
for leisure and travel.
“The basis of the entire agriculture
in this area is the amount of corn
and/or soybeans we can raise. It is
time to think of more than just good
black top soil that produces the corn
and beans. We are lagging behind our
sister states who have greater yields.
I am convinced we must make the
maximum effort to get maximum effi­
ciency from our land. For example,
we are gaining nothing by using
cheaper seeds rather than Wayne
seeds or other high class seed. To
utilize these grains we turn to feeding
Digitized Nfor
t h w e s t e r n B a n k e r , December, 1 9 6 6
Federal Reserve Bank of St. Louis


stock. Therefore, we must determine
to maximize efficiency.”
Toastmaster for the evening was E.
H. Spetman, Jr., president of Council
Bluffs Savings Bank, who just a few
days earlier had completed his term
of office as president of the Iowa Bank­
ers Association. After Mr. Ross’ brief
remarks, he introduced E. H. (Shorty)
Shoemaker, Jr., president of the Ne­
braska Stock Growers Association and
president, The Milldale Ranch Com­
pany, North Platte, Neb.
Mr. Shoemaker commented first on
the housewives’ recent boycotts of re­
retail stores in several cities. “We
must look for the cause of inflation,
not the result. Farmers and ranchers
should not be the scapegoat.” He fur­
ther reminded his audience of 1963 im­
ports that resulted in the Hruska
A m en d m en t (U. S. Sen. Roman
Hruska, Rep., Neb.) curtailing im­
ports. Increased domestic prices re­
sulted. But now, Mr. Shoemaker,
stated, we are back up to 800 million
pounds of import “and there were 46
million pounds on the water 10 days
ago headed here.” (The meeting was
held November 3.)
In turn, the government restricted
the export of hides, further hampering
domestic livestock trade, he said.

Mr. Shoemaker said farmers are be­
ing forced to subsidize the Viet Nam
war to the tune of $2 billion a year in
controlled prices.
On the positive side, Mr. Shoemaker
stated, he would endorse the remarks
of Mr. Ross. He said our beef supply,
with its largest slaughter of cows and
heifers this year, is 6 per cent ahead of
the first six months of 1965. “ If we
realize our feed supplies are getting
thin,” he said, “you can see the in­
creasing importance of agriculture in
the next 10 to 20 years.”
The lower cattle inventory by pos­
sibly two million head, mainly in heif­
ers and cows, and a 5 per cent drop in
slaughtering, and a 2 per cent drop
in calving all adds up to better prices
after January, 1967.
Mr. Shoemaker concluded by stat­
ing, “ If we keep our feet on the
ground, we will be an important part
of this economy. But just remember,
any government big enough and pow­
erful enough to give you everything
you want, is also big enough to take
everything you have.”
The concluding speaker for the eve­
ning was Ray Monsalvatge of Dayton,
Ohio, whose inspirational talk, “Un­
cork Your Hidden Talents,” has been
so enthusiastically received through­
out the midwest by numerous banker
audiences. He was just as warmly
received by the farm owners, who
found his philosophy of relying on
oneself for progress and success a re­
freshing departure from the routine
news of the day that shows so many
looking to welfare and security pro­
grams for their care.— End.































Federal Reserve Bank of St. Louis

D e s M o i n e s , lo c o a

M em beß

F e â e c a l D e p o s it lo s u R a o c e

C o R p o ß a f io n

N o rth w estern

B anker, D e c e m b e r, J966


Iowa News

A Frank
at trust

Frank Price, Senior Vice Presi­

dent and head of La Salle’s Trust
Department, is an authority on
the operation of bank trust de­
partments. He’s a man bankers
can look to when they want an­
swers to their own trust problems.
Need Frank’s help? You can
call him at STate 2-5200 (Area
Code 312). And you’ll find him
at La Salle National Bank, 135
S. La Salle St., Chicago, Illinois
60690. Member FDIC. Com­
plete Trust Services.

Digitized for
r t h w e s t e r n B a n k e r , December, 1 9 6 6
Federal Reserve Bank of St. Louis

Santa Claus ** Is
Them e
Noriotra Ita


Santa ciaus” is the is an excellent traffic and goodwill
theme of the special four-week builder.
promotion being conducted by some The North Iowa Banks sponsor
50 banks in the north Iowa area over three 10-minute news programs per
week, 52 weeks a year, as a part of a
station KGLO-TV in Mason City.
Chairman of the group this year is continuing effort. Also, the group
Lou Cox, executive vice president, sponsors special programs such as the
live telecasts of the North Iowa Band
First State Bank, Belmond.
Festival, and the Boys’ State Basket­
During the last two weeks in No­
ball Tourney. Started 10 years ago
vember and the first two weeks in
by a handful of banks in one county,
December, the public is invited to stop
the group has continued to grow to its
and register at any of the participating
current number of about 50 sponsor­
banks. Each individual banker con­
ing banks.
ducts a drawing from his registrations
and this winner is awarded $25 cash
on a special live telecast prior to Webster City Changes
A number of officer changes were
Christmas on Saturday afternoon. The
winners and bankers come to the TV made in the executive staff of Farm­
studio and participate in the special ers National Bank of Webster City,
program, with the banker introducing effective December 1, when G. E. Alex­
the winner and presenting his prize. ander retired as president after 50
Each winner drops his winning regis­ years’ service to the bank. Mr. Alex­
tration ticket in a drum and after ander will continue as a director and
a brief interview is completed a draw­ to serve in an advisory capacity.
Rodney B. Amlie was advanced from
ing is held on the program for the
three grand prizes of $500, $300, and vice president to chairman of the
$200 which are presented immediately board. L. S. Wood was promoted from
to the winners. Following the pro­ vice president to president. William
gram, the bankers treat their winners F. Vance, cashier, was also elected vice
to a dinner as a group at a local re- president. George B. Aden, vice presi­
dent and trust officer, was advanced
Operation Santa Claus includes post­ to senior vice president. Carl T.
ers for the banks and registration cou­ Palmer was promoted from assistant
pons delivered by the station as a part cashier to assistant vice president.
Delmar K. Deischer has resigned as
of the program. The promotion has
proved to be one of the outstanding assistant cashier and is joining the
features of the North Iowa Bank Fidelity Savings Bank of Marshall­
group advertising over the years. It town.
p e r a t io n


Our best w ishes fo r a Happy
H oliday Season —
and for good health, good friends
and good fortune
throughout the coming year

Council Bluffs
Savings Bank
Broadway at Pearl
Carson, Iowa

27th and Broadway
McClelland, Iowa


Federal Reserve Bank of St. Louis

W e 're a s m a ll p a r t
o f so m a n y h e re a t F irs t
w h o w is h fo r y o u
th e v e ry n ic e s t k in d o f C h ris tm a s
a n d th e v e ry b e s t
fo r th e y e a r a h e a d .

i r ,s t N a t i o n a l B a n k

in S io u x C ity
N o r th w e s te r n B anker, D e c e m b e r, J966


lie s M o in e s

The mural was displayed for the
MURAL 35 feet long and seven
feet high, painted in seven sep­ first time at a special press showing
arate panels, will be hung as one piecelast month in the Art Center, and a
on the south wall of the main lobby in public showing later the same evening.
the new Central National Bank and In receiving the mural from the ar­
Trust Company building. The mural tists, B. C. Grangaard, president of
was painted by Cornelius Ruhtenberg Central National Bank, told the as­
and Jules Kirschenbaum, a husband sembled group. “We didn’t have it
and wife artist team known promi­ done for the money. We don’t expect
nently in art circles in the United it to boost our accounts. We had it
States. Mr. Kirschenbaum is artist-in­ done as part of our participation in
residence at the Des Moines Art Cen­ community affairs.”
The mural depicts in sensitive color


VIEWING- the mural for Central National Bank & Trust Co.’s new building are: left
to right: Clyde W. Lighter, architect, Tinsley, Higgins, Lighter & Lyon; B. C. Gran­
gaard, president of the bank; the artists, Cornelis Ruhtenberg and her husband Jules
Kirschenbaum; Ivan L. Johnson, v.p. in charge of business development and public
relations for the bank, and George T. Nelson, a.v.p., business development and public
relations department.

selected scenes in the history of Iowa,
from the time of the Indians, through
the periods of its settlement and devel­
opment into a great state, and to its
present position in a modern world.
From left to right, the seven panels *
of the mural, pictured below, repre­
sent: Panel 1—Iowa’s participation in
the Civil War. 2—Carillon Tower at
Ames, University Hospital, space age ^
missile, Iowa bridges, its capitol, and
state birds. Panels 3 and 4—A grow­
ing city with new buildings taking the
place of old ones, Iowa industry, the i
Art Center, a church, and Iowa’s great
agricultural background. Panel 5—
Tractor and windmill representing two
ages of farm power, a silo symbolic of
the state as a storehouse of food, com- -a
munications, transportation and power.
Panel 6—Iowa’s common denominator
—corn, Iowa swine, three types of cat­
tle, and the oldest Iowa building—the \
lead Shot Tower at Dubuque. Panel
7—Iowa’s early rugged pioneers rep­
resented by covered wagons, spinning
wheel, horse-drawn plow, and Indian
* * *
In the November issue of Municipal
Statistical Bulletin, published by the
Investment Bankers Association of
America, Iowa-Des Moines National
Bank is ranked among the leading 125
managing underwriters of new mu­
nicipal issues during the first nine
months of 1966. The bulletin reports «
that the bank was managing under­
writer for 13 issues in the first three
quarters of the year, for a total of
This volume placed Iowa-Des Moines
National 104th among the leading
managing underwriters. Robert J.
W issler is manager of the bank’s bond
<Only 13 midwest banks are included
in the list of 125 and Iowa-Des Moines
National ranks 11 among the 13 in vol­
ume of issues.
>* *
B. C. Grangaard, president, Central
National Bank and Trust Company,
has been reappointed as a member of
the advisory committee on federal leg­
islation of the American Bankers As­
sociation. He also served on the com­
mittee during 1965-66.

-, « «

o r t h w e s t e r n B a n k e r , December, 1 9 6 6
Digitized forNFRASER
Federal Reserve Bank of St. Louis


A Most Joyous Christmas
Season and a
Prosperous New Year



a t 5 8 2 -1 8 4 1 fo r
S e r v i c e on:

On the Spot Service
for the Tri-State Area
EAST, WEST, NORTH, SOUTH Location is one of the reasons why American
Trust's services are always a little faster for banks in the Tri-State Area. Its con­
venient location allows banks in this area to benefit by receiving fast, efficient
correspondent banking service. H Christy Armstrong, Leo Kane and Leo Schlueter
are familiar with the Tri-State Territory and are anxious to give personal and expert
service, backed by American Trust's complete staff and banking facilities.
Federal Reserve Bank of St. Louis

american trust

s a v in g s b a n k

M E M B E R : F D IC • F R S

N o r th w e s te r n B anker, D e c e m b e r,



Iowa News

HW7 I s c m

Mr. Cone

Keith Cone, Senior Vice Presi­
dent heading La Salle’s R etail
Banking Division, has earned a
worldwide reputation in instal­
ment credit. W hether the sub­
ject is auto, boat, aircraft, edu­
ca tio n or h om e im p rov em en t
financing, the personal loan field,
busin ess in sta lm e n t loan s or
leasing, Keith knows. W hen you
w a n t to k n o w , c a ll h im at
La Salle National Bank, 135 S.
La Salle S t., C h ica go, Illin ois
60690. STate 2-5200, area code
312. M em ber F D IC . Com plete
Trust Services.
r th w e s te r n Banker, D e c e m b e r, 1966
Digitized for
Federal Reserve Bank of St. Louis

iio in i /

fjr o o r f, t i n t Slower

IVE industrialists and an econo­ be justified for producing badly needed
mist told 485 Des Moines business­ revenue, but will not be needed for
men early this month that the na­“cooling off” the economy, which has
tional economy would still run at a received a deep chill already.
Corporate profits leveled off at $80
high level of activity, although ad­
justed lower from the 1966 peak. billion after the 1966 first quarter and
Speaking before the Eighth Annual have fallen since. They will drop fur­
ther in 1967, and will be accelerated
Iowa Business Trends c o n fe r e n c e
sponsored by the Iowa-Des Moines disproportionately in automated indus­
National Bank, each man noted the tries if production should be curtailed
increasing effect of the Viet Nam war from high inventories now being built
on the psychology of business and its up.
Construction is unlikely to improve
effect in consuming a greater number
in 1967. Wage levels will increase dur­
of dollars and men.
Calvin W. Au- ing the coming year. The stock mar­
rand, president of ket will not change drastically from
t h e Iow a - Des activity of recent months, favoring
Moines National, those firms innocating needed services
presided at the and goods, and on a selective basis.
meeting. At the
Harry B. Cunningham, president, S.
luncheon meeting
S. Kresge Company Detroit: We think
he in tro d u ce d
1967 national personal income will be
Governor Harold
up 5 or 6 per cent over the 1966 total.
Hughes, who
Assuming no material change in in­
reviewed b r ie fly
come taxes, we
the a d m in is tra ­
can expect a com­
tive reforms he
p a ra b le increase
has sought to make in Iowa.
in c o n s u m e r
Richard Carey, trust officer of the
spending—in oth­
host bank, read the speech prepared
er words, to a to­
for delivery by Harry B. Cunningham,
tal a p p ro a ch in g
president of S. S. Kresge Company,
$500 billion. Re­
Detroit. Bad weather made Mr. Cun­
gardless of what
ningham the first casualty among
happens to interspeakers in the eight years of the con­
e s t r at e s , we
ference. Following is a digest of each
would not antici­
speaker’s remarks:
pate any great


Dr. Ross M. Trum p, economist,
Washington University, St. Louis: The
year 1967 will be a good one, although
not as productive
o r profitable a s
1966. Three fac­
tors surrounding
the Viet Nam war
must be consid­
ered. I. If peace
develops through
the C h ristm as
tru ce or oth er
means, the econ­
omy would under­
R. M. T R U M P
go substantial re­
adjustment, although a substantial por­
tion would continue for some time or
be converted to civilian production—
such as delayed commercial aircraft
contracts. 2. If war escalation comes,
increased production will be needed,
straining production and full employ­
ment, moving us to a “war footing”
which would undoubtedly bring wage
and price controls. 3. The most likely
alternative is that the war will con­
tinue in 1967 much the same as at its
present pace. Renewed sentiment for
tax increases will be felt; these will

change in savings as a percentage of
We think Iowa retailers will fare
considerably better than the national
average. Your rate of growth in con­
sumer income so far this year is about
two points above the national average.
We expect this comparison to continue
in 1967.
Lee L. Morgan, executive vice presi­
dent, Caterpillar Tractor Co., Peoria,
111.: McGraw-Hill Publishing Company
has forecast that
new construction
by 1970 will have
increased to more
than $87 billion, a
17 per cent in­
crease over the ex­
pected 1967 level.
We are in full ac­
cord with this
Highway spend­
ing will continue
to grow. Allen S. Boyd, Secretary of
the recently established Department of
1967 ECO N O M Y . . .

(Turn to page 94, please)

Season’s Greetings
and best wishes
for the finest
New Year ever

W e ’re starting out the new year
with new banking facilities — new
ways in w hich to serve you better
and a host o f new wishes for the best
in ’67 for you and yours.




\Æk National Bank
SEVENTH AT M ARQUETTE, M IN N E A P O LIS, M IN N E S O T A / 3 3 3 -5 4 1 1

Carl Pohlad, President
: R. W. (Bill) Crouley, Senior Vice President • Otto H. Preus, Vice President
Stewart Stotesbery, Correspondent Bank Officer • W. J. Addington, Correspondent Bank Representative
Federal Reserve Bank of St. Louis

Avery Fick, Assistant Vice President
Len Erickson, Credit Officer


Iowa News

Spencer O bserves 5 0 Years
First Choice
for trust
service in
Northeast Iowa



jD A e - ------------—

SPECIAL five-day open house nieres. Coffee and doughnuts were
was held last month by the Farm­ served continuously each day during
ers Trust and Savings Bank, Spencer,banking hours. A four-tiered golden
in observance of the bank’s 50th anni­ anniversary cake prepared by a local
versary, according to W. E. Lundeen, bakery was on display in the bank
executive vice president, president­ lobby on Thursday and Friday morn­
ing, and was cut and served early
Roses were presented by the bank Friday afternoon. Free gifts were
to the first 50 “lady” customers coming presented to all customers who called
into the bank each morning. Female at the bank during the five-day observ­
tellers, secretaries, etc., wore corsages ance, including a medallion specially
each day and the men wore bouton- struck to depict the observance and 50
years of service, key chains, letter
openers and other special gifts. Fifty
stadium robes, in carrying cases, were
given away free to customers on a
surprise basis, via an alarm secretly
^ ìlìe r r ij C ^ L r iá tm u ó
placed in the various teller windows,
the customer at the window wherein
the alarm went off being the recipient
cl a
of the blanket. This was done at ir­
regular times throughout each day’s


O F W ATERLOO _À i a Ì J e a r
PHONE 235-03 31




, ______—

THE HONOR of cutting the Farmers Trust & Savings Bank golden anniversary cake
went to Miles Taylor (left), a customer of the bank since its opening in 1916. Others,
left to right, are officers of the bank: Wm. E. Lundeen, exec. v.p. and pres.-elect; Karl
R. Tuttle, exec, v.p., and G. Kenneth Edge, cash.

(Area Code 319)

Federal Deposit Insurance Corporation
Federal Reserve System

Digitized for
r th w e s te r n Banker, D e c em b er, 1966
Federal Reserve Bank of St. Louis

Start Grundy Construction

ïY lifro n (Y. J Y u râ te n
R ic k a r d C . f ie J i n


J f annette -J lfl fiton

‘ ■SERVING B A N K S A N D B A N K E R S S I N C E 194 8 "

1301 R & T BLDG.
PHONE 515-244-3113

Work on the construction of the new
building for the Grundy National Bank
is underway, according to Wm. Groote,
The new building will be 75 by 55
feet. There will be a large concrete
parking area to the rear and south of
the building. The bank will provide a
drive-in teller. Arnold Schultz, vice
president, is serving as chairman of
the building committee. Work is ex­
pected to be completed by June, 1967.



M a y th e J o y s o f th e
C h r is t m a s S e a s o n
A l i d e w it h

-J ■

Y o u a n a Y o u rs
Federal Reserve Bank of St. Louis

ÌT A H ^



N o r t h w e s t e r n B a n k e r , December, 1 9 6 6


Iowa News
1 9 6 7 ECONOMY . . .
(Continued from page 90)
Transportation, has estimated that
there will be at least 120 million ve­
hicles in use by 1975 compared with
90 million today, a one- third increase
in less than 10 years. Higher expendi­
tures are in prospect for airports as
the jet age brings larger aircraft to
every commercial airport in the nation.
Railways are also scheduled for major
attention, requiring reworking of road­
beds (to accommodate 160 m.p.h.
trains) and considerable relocation.
There is every reason to believe that
the pause in construction probable for
1967, will be followed by rapid developement in subsequent years.


Max Baughman, V ic e P r e s i d e n t in
c h a r g e o f La S a l l e ’ s I n t e r n a t i o n a l
D e p a r t m e n t , has m a s te re d th e p a p e r ­
w o rk of in te rn a tio n a l tr a d e , a nd his
w o rld-w ide perso nal c o n ta cts m a k e it
possible for M a x to c u t th ro u g h in te r­
national red ta p e to g e t th e job done .
U se M a x as yo u r Foreign D e p a r t m e n t .
H e ’s a t La Salle N ation al B an k , 1 3 5
South La Salle St., Chicago, III. 6 0 6 9 0 .
S T a te 2 - 5 2 0 0 , a re a code 3 1 2 . C o m ­
plete T ru s t Services. M e m b e r FDIC.
r th w e s te r n B anker, D e c e m b e r, 1966
Digitized for
Federal Reserve Bank of St. Louis

W . A . Strauss, president, Northern
Natural Gas Company, Omaha: If, in
the last 50 years the state of Iowa had
grown at the rate of the nation as
a w h ole, there
would be nearly 2
million more peo­
ple in the state to­
day. The Iowa
Commission says,
on the basis of
g r o wt h, that
Iowa’s population
is n o w 2,838,000
w h i c h , if pro­
jected to 1970, would represent a 6.2
per cent increase—a somewhat higher
rate of growth than between 1950 and
All available measures of manufac­
turing activity indicate a healthy
growth during the first half of the
60’s. Employment in manufacturing
increased 7.6 per cent between 1960
and 1965 compared to the national
growth rate of 7.1 per cent during the
Recently Business Week published
a survey of changes in personal in­
come for all the states between 196566. It is worth noting that Iowa
showed a growth in this important sta­
tistics of 12.9 per cent for that year,
which made it second highest in the

IO W A S E A R C H , IN C .
B O X 1 0 3 D E S M O IN E S . IO W A 5 0 3 0 1

G. M. STRAND. President
W . N. BUMP. Secretary
Phone: 515-243-3271

nation and well above the U. S. aver­
age of 8.1 per cent.
Edward .). McAdams, president, Ar­
mour and Company, Chicago: Farm­
ers now indicate that they intend to
have 6 per cent more sows farrow in
December - Feb­
ruary. If this hap­
pens it f o l l o w s
that hog slaugh­
tered next fall
will probably be
lighter than dur­
ing the past year.
The trend is be­
ginning to appear.
W h e re a s h o g s
have reached a
low point in the
slaughter cycle, cattle have reached
a peak in slaughter. Cattle and calf
slaughter in 1966 is now estimated to
total 41 million head, slightly above
1965 and a new record. USDA pre­
dicts 1967 slaughter to be moderately
lower than 1966, reasoning that cattle­
men are beginning to expand their
breeding herds. Declining cow slaugh­
ter confirms this reasoning and we
expect this trend to continue.
With this situation, the demand for "V
feeders will be strong and the price
of feeders is expected to be higher.
Imports of feeder cattle are expected
to continue large this fall and next
winter which will partially offset the
smaller domestic feeder suppply. As
fed cattle prices improve in 1967, feed­
er cattle prices are likely to advance.

vice president-manu­
facturing, Massey-Ferguson, Inc., Des
Moines: By the early 1970’s America
will be spending $200 billion a year on
recreation—more than the total pro­
jected gross na­
tional product of
any other country
in the world. The
Midwest Research
Institute predicts
that d i sp osabl e
personal i nc o me
will i nc re ase 25
per cent in the
next decade and
that 28 per cent
of family spend­
ing will be for recreation. It makes
sense to me that some of our new
manufacturers might produce goods
now in growing demand for recrea­
tional use. More and more people will
be in the prime recreational-spending
age groups, under 30 and over 55.
There will also be more white collar
workers with strong tendencies to go,
see and do. And with strong inclina­
tions toward self-improvement.
R. E . Kidder,














Federal Reserve Bank of St. Louis




N o r th w e s te r n Banker, D e c e m b e r, Ì9 6 6


Iowa News

Completc Clinton limili Sole
sources have disclosed
that negotiations have been com­
pleted involving the sale of a sub­
stantial block of stock in the First
National Bank of Clinton, Iowa. The
purchaser, Paul Dunlap, is president
of the Houghton State Bank, Red Oak,
Iowa, and with associates has other
banking interests in Iowa and Ne­
The shares involved were holdings
of G. E. Wilson, Jr., and Richard O.
Wilson, who have recently moved to

Last year Dial Finance
C om pany g ra n ted
credit to nearly halfa - million consumers.
We are on our way to
doing better than that
in 1966. S ince 1897,
Dial’ s participation in
the financing of con­
su m ers’ n eeds has
created business
throughout the nation.
Our cu stom e rs buy,
pay b ills, tak e trip s.
We continue to grow
in 1966—30 new offices
since January 1— and
our expansion means
more economic activ­
ity, more business.

Florida, and George M. Curtis who is
terminating active business connec­
tions in the local family plant. Also
included in the sale is a portion of the
stock holdings of the Bruce Townsend
family. It is further reported, how­
ever, that Mr. Townsend has agreed
to remain as president and managing
executive officer of the bank.
Mr. Dunlap explained that, in seek­
ing an investment in Clinton, he is
particularly impressed with the strong
economy and future business pros­
pects offered by eastern Iowa.
All negotiations were conducted by
the Bankers Service Corporation of
Des Moines, Iowa.

Dubuque TV Unit
A TV Drive-in window is being
added to the parking lot facility by
the American Trust and Savings Bank,
Dubuque. The facility has three other
regular-type windows, and this will
be the first of its type in the Dubuque
area. The equipment is being installed
by Diebold, Inc.

Heads Colchester Bank
Francis W. Huff has resigned as
second vice president of the Central
National Bank of Chicago to accept a
position as executive vice president
of the Colchester State Bank, Col­
chester, 111. He replaces Eugene
House as executive officer, who has
resigned to go into another business.
Mr. House was with the State Savings
Bank, Cantril, Iowa, prior to 1963.
Mr. Huff has a Masters Degree in
agriculture. Most recently he has
traveled Illinois for Central National’s
correspondent banking division.

Chieftain To Be Sold
The Chieftain Hotel in Council
Bluffs, meeting place for many Group

5 bankers’ conclaves, will go into re­
ceivership February 28 under a dis­
trict court order. The hotel will
continue to be open until this date. It
is anticipated that the hotel will be
sold at a sheriff’s sale in late December. A

Question Charge Cards
It was reported at press time that
legal opinions are currently being obtained by various sources regarding
the use of charge cards and/or credit
cards by Iowa banks.
Under the Iowa installment loan A
law, banks are not permitted to charge
more than a 6 percent add-on rate, ex­
cept for filing fees and insurance
charges. Many of the charge card
plans (such as those now being issued
by a number of major Chicago banks)
carry a rate of as much as 1 percent
per month plus a % of one percent
service charge.
Pressure to affiliate with a charge
card system is perhaps greatest along
the Mississippi River area where
banks on the Illinois side have launch­
ed plans to distribute the charge cards
in the area.

Elect New Director
Directors of the Peoples Savings
Bank, Crawfordsville, have elected Arvid H. Anderson to the board, accord­
ing to William R. Bernau, president
and chairman, following the November
meeting late last month. Mr. Ander­
son has been engaged in farming in
Crawfordsville for 17 years. In 1964 (
he was honored as an Iowa Master V "
Swine Producer, and has been an offi­
cer of several leading farm and civic
groups in the area.
Mr. Bernau also announced that cap­
ital stock of the Peoples Savings Bank
had been increased from $32,000 to
$64,000. Remodeling of the bank is
in progress at this time and new equip­
ment will be installed.

City National Director

W rite or call collect
3 6 5 -9 1 1 7

Paul Hamilton, Jr., was named to
the board of directors of City National
Bank & Trust Company, Kansas City,
at their recent monthly meeting. Mr.
Hamilton is president, chief executive
officer and a director of Interstate Se- y
curities Company and of the Old Se­
curities Insurance Companies, Kansas

A rea C o d e 3 1 9

U lA .lL

T in an cz C om pasiy

207 Ninth Street
Des Moines, Iowa


r t h w e s t e r n B an ker, D e c e m b e r, 1966
Digitized forN oFRASER
Federal Reserve Bank of St. Louis



C o n f id e n t ia l C o n s u lt in g S e r v ic e
M e r c h a n t s N a t io n a l B a n k B u ild in g
C e d a r R a p id s , Io w a

Jack Dwyer Organization, Inc.

Des Moines, Iowa 515— 283-1751
M em ber: A m erican Repossessors Assn.— Bonded


Her D a d d y
That’s right. Susie’s daddy insured
their home the other day when he fi­
nanced it through the local bank. Act­
ually, he didn’t insure the home, he
insured his life so that if anything
happens to him, Susie, her mother and
her two brothers won’t have to worry
about a place to live.
Susie doesn’t know anything about
this, nor would she understand it if she
did. Her world is a small one, today.
Her only concerns at the moment are
her doll (Mary Jane) and her girl
friend (Betty Ann), who lives next
Federal Reserve Bank of St. Louis


Susie loves and trusts her daddy and
mommy. She knows they both take
good care of her. The thought has
never entered her mind that her daddy
might not be around as she grows up.
But their family banker has thought
about this possibility and that’s why
he advised Susie’s daddy to insure the
payments on their home.
Sometimes the banker may be re­
luctant to urge his customers to insure
their home payments or the payments
on a large installment purchase. But if
the banker will remember little Susie’s
face, he will know he is doing the right
thing. Insurance dollars can never re­

place a daddy, of course, but at least
part of the family’s financial load will
be lightened if the family banker will
help all the daddies make the right
If you are not offering Home-Saver
and Credit Life insurance to “all of the
daddies” who borrow from your bank,
perhaps you should reconsider your
bank’s position. A National Fidelity
representative will be glad to show you
the value of a positive and consistent
insurance program for your bank. Ask
him the next time he calls, or drop us
a note. No obligation, of course.

N a t io n a l F id e lity n o w ra n k s a m o n g the to p 12%
o f A m e r i c a n a n d C a n a d i a n life c o m p a n i e s

A SSET S . . . $40 Million

M o re
in s u r a n c e

th a n

3 ,0 0 0

p o r t f o li o

C A P IT A L & SURPLUS . . . $6,788,415

m id w e s t e r n

b e n e fit y o u r b a n k .

D ro p


a re





n o te




u s in g


hom e

th e


b ro a d

p ro g ra m s

o f f ic e .

One o f the Nation s Strongest by Any Standard o f Comparison

^S^ational fidelity L ife

Northwestern Banker, December, 1966






Ann i



if. t * > n

Rates 25 cents per word per
insertion. Minimum: 12 words.
306 15th St., Des Moines, Iowa

You select the machine or equip­
ment, new or used, from any sup­
plier. We will buy and lease to
you. For details call or write
Pioneer Leasing Company, Box
467, Norfolk, Nebraska.

Any form you need we stock, or
will print. S p e c ia l forms then
stocked for prompt shipment on
Box 238, Webster City, Iowa

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
179 Broadway, N. Y., N. Y. 10007,
or phone 212— BA 7-9000 for info.





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

Oakland, Iowa

IN THIS photo published in last month’s issue, the men were incorrectly identified.
W. Loren Parr (center), shown with Mrs. Parr, was being honored for his 50 years of
service with Commercial Trust & Savings Bank, Charles City. He is exec. v.p. of the
bank. At left is Carl Magdsick, a director of the bank, and at right is C. M. Frudden,
pres, of the bank.

New Business Officer
The Dallas County State Bank, Adel,
has established a department of public
relations and business development, it
was announced last month by H. B.
Jacobson, president. Russell Horn,
vice president, who has been with the

D E C E M B E R . 1966

Acorn Printing Company .......................... 98
American National Bank and
Trust Company-—C h ica g o .....................
American National Bank and Trust
Company— Saint Paul . . . . 56, 57, 58, 62
American Trust and Savings
Bank— Dubuque ........................................ 89
Bank Building and EquipmentCorp. 19, 20
Bankers Service C orporation................... 92
Bankers Trust Company— DesMoines. 82
Bank of America ........................................... 30
Bank of Montreal ........................................ 12
Black Sale System ...................................... 10

Central National Bank— Chicago ......... 47
Central National Bank and Trust
Company— Des Moines ............................ 28
Central States Health & Life Co............. 101
Chase Manhattan Bank .......................
Chemical Bank New York Trust Co. . . 27
Chiles & Company ........................................ 70
City National Bank & Trust
Company— Kansas City .......................... 39
Colorado National Bank ............................ 65
Commerce Trust Co.— Kansas City . . . . 77
Council Bluffs Savings B a n k ................... 86
Curtiss 1000 Inc............................................... 98

Davenport, P. E., & Co...............................
DeLuxe Check Printers, Inc.......................
Denver U. S. National Bank ...................
Dial Finance Company ..............................
Downey, C. L., Company .........................
Drovers National Bank ..............................


Farm Business Council, Inc....................... 99
Figge, Reginald, Associates ................... 96
First National Bank— Chicago
............ 17



Digitized forNorthwestern
Banker, December, 1966
Federal Reserve Bank of St. Louis


First National Bank-— Denver ...............
First National Bank— Minneapolis . . . .
First National Bank— Omaha .................
First National Bank— Sioux City .........
First National Bank and Trust
Company— L in c o ln ....................................
First National City Bank—
New York .................................... 23, 24,
Foundation for Commercial Banks . . .


Gross, Kirk, Co................................................


Halsey, Stuart & Co., Inc...........................
Harris Trust and Savings Bank ...........




Iowa-Des Moines National B a n k ............102
Iowa Legal Blank & Printing Co.......... 98
Iowa Search, Inc............................................. 94


LaMonte, George & Son ............................ 7
LaSalle National Bank .................86, 90, 94
Lawrence Company, The .......................... 41
Live Stock National Bank—
Sioux City ................................................... 60


Marquette National Bank ....................... 91
Mercantile Trust Company ..................... 15
Merchants National Bank .......................
Midland National Bank of Minneapolis. 55

National Bank of Commerce Trust
and Savings— Lincoln ............................
National Bank of South Dakota ...........
National Bank of Waterloo .....................
National Boulevard Bank .......................
National City Bank— Minneapolis .........
National Fidelity Life Insurance Co. . .
North Central Companies ..........................
Northern Trust Company ..........................



Omaha National Bank ................................ 69
Ozark Air Lines ............................................. 81

Phillips, Hotel ............................................... 48


Recordak Microfilming— Eastman
Kodak Company ................................

52, 53


Security National Bank— Sioux City . . 95
South Omaha Stockyards
National Bank .......................................... 73
Studley, Shupert Trust
Investment Council ................................ 12

1 8 8 2 ...............

Talcott, James, Inc........................................ 45
Twins Motor Hotel ...................................... 48

s u p p l i e r to t he ba nki ng i n d u s t r y

bank since 1938 and manager of the
Dexter office since 1944, will be in
charge of the new department.
Mr. Jacobson said Leland Goodrich,
vice president, will be in charge of the
Dexter office until a resident manager
is named.

IN C .

1000 University Ave. • St. Paul, Minn. 55104


United States Check Book Company . .
United States National Bank— Omaha .
Valley Bank and Trust Company—
Des Moines ...................................................
Valley National Bank of A r iz o n a .........
Van Horne Investments, Inc......................




F ro m 7*/n M o o r y *to Iti y B u sin em
(Continued from page 36)








observers in the Alta Vista coramunity.
First-Year Records

In late September of .1964, Mr. Hilsman retired his first flock after 13
months of lay, and Mr. Hofman’s
house was emptied the first week in
October after 13.4 months of lay. Mr.
Hilsman had produced an operating
income (return for labor and use of
facilities) of $1.65 per bird and Mr.
Hofman $2.17. Both had experienced
less than 5 percent depletion during
the complete flock cycle; had feed con­
version rates of 4.2 and 4.0 pounds of
feed per dozen respectively; and both
flocks averaged over 280 eggs per pul­
let housed or one egg every 7 out of
10 days.
When flocks are retired, some re­
covery is made on their original pur­
chase price of about $1.80. Prices have
varied from 4 to 11 cents per pound
for these “retired” birds, but generally they have brought 25 cents per
pullet when sold to food processors for
chicken soup and other canned chick­
en products. On a 5,000 bird flock, for
example, and assuming just under 5
per cent depletion, the pullets might
be sold at the 25-cent rate for about
$1,200, or about 13.3 per cent recovery
on purchase price.
Mr. Schwickerath’s first flock was
kept until February, 1965. By that
time Hy-Cross Chick Company had
put up Midwest Cage Layer Units on
two more farms in the Alta Vista area
and six other farms outside that gen­
eral trade area; and plans were well
along for three more new units and
one 4,000-bird extension that were
built in 1965.
During the summer of 1964 Melvin
Johnson’s “colony” of egg producers
grew as both Mr. and Mrs. Duane
Gerhardt and Ed Schwickerath put
up units for 5,040 birds each. Mr.
Schwickerath later completed plans
to increase his unit to 10,000 birds in
1966, demonstrating his confidence
that egg production offers the kind of
return he’s looking for in his farm
Another Hy-Cross customer, Roland
Clement, at Garner, Iowa, has put his
money where his experience indicated
his confidence should be, when in
1965 he increased to 9,000 birds ca­
pacity the 5,620-bird unit he put up
in 1964.
Unit Sizes Increase

Experience is an effective teacher
< via the object lesson route under the
V direction of Melvin Johnson and his
supplier, Hy-Cross Chick Company.
There have been no drop-outs in their
Federal Reserve Bank of St. Louis

system, and new recruits are joining
the ranks all the time. It is interest­
ing to note the larger size of cage
units that were constructed in 1966:

Roger Weitzie, Nora Springs 5,500
Clarence Cliizek, Garner
John Hanke, Stacyville
Lawrence Weinberger, Osage 7,500

Each year the average size of units
built or enlarged by the Hy-Cross
organization seems to increase:


6 units built—averaged 6,286
(i units built—averaged 5,640
4 units built—averaged 5,512
7 units built—averaged 5,607

The 23 farmers whose units total
over 120,000 layers are not only adding
is what a banker in the
locality discussed in the
accompanying article has to say
about this program:
“We are pleased with the
operations of the local poultry
farms around Alta Vista, and
feel that, with proper manage­
ment and an average of 30c per
dozen for eggs, that they will
prove a good investment and
will take care of the payments,
if financed, and feed.
“We do feel, however, that
proper management has much to
do with the success, as well as
the Hy-Line method of financing
and their picking the proper
parties to build a house. What
impresses us is the cash coming
in every week to take care of the
feed and other expenses.”
Joe Menges, President
Alta Vista State Bank
Alta Vista, Iowa
much new production to their own
operations, but are also contributing
much to the local business economy
of their business communities through
input purchases of the flocks, build­
ings to house them, insurance cover­
age, thousands of dollars for feed, and
bank loans needed to finance the busi­
In Iowa and adjoining states, for the
years 1963 through 1966, there have
been 161 Hy-Line Midwest Cage Layer
Units set up with 919,000 layers.
Egg production is a growing busi­
ness—an enlarging new concept of a
major segment of agriculture in this
section of Iowa. By contrast, egg
production is somewhat of a diminish­
ing tradition in other parts of the mid­

west—largely as a result of changes
in marketing processes that place a
premium on consistent high quality
the year around, and large volume
marketing units.
Farmers in the Alta Vista area, and
elsewhere, who had the wisdom to
follow the leadership of people like
Melvin Johnson and such organiza­
tions as Hy-Cross Chick Company are
fast realizing the economic return
value of changing their production
methods to meet the requirements of
changed marketing concepts—which
in turn merely reflects the methods
used to cater to the preferences of
Mrs. American Housewife.—End.

Robert E. Driscoll
Services were held in Rapid City
December 3 for Robert E. Driscoll, 77,
a prominent former banker and legis­
lator in South Dakota. Mr. Driscoll
died November 29 in Santa Monica,
Calif. A native of Central City, he was
former board chairman of the First
National Bank of the Black Hills,
Rapid City; a former director of North­
west Bancorporation; a former state
legislator; former president of Ameri­
can Colloid Company, and had served
the South Dakota Bankers Association
for one term as president.
Survivors include Mrs. Driscoll, one
son, three daughters and one brother.

YES— W e d e live r full se rvice
banking to farmers, ranchers and
agribusinessmen. The best in
R A N C H - F A R M * D A I R Y - F A R M * SO UT H- FAR M ,
URBA N » , IL L IN O IS 61802

Nor th wes tern Banker, December, 1966


Sad Affair

Who s W rong?

A city was staging a mock air raid
and the Boy Scouts had been called
on to act as wounded persons to be
picked up and tended by members of
the civil defense organization.
The first-aid people got considerably
behind schedule and one little Scout
lay awaiting his rescuers for over an
hour. W hen they finally arived at the
spot, they found a note in a childish
scraw l: “ I bled to death and went

Note found under a windshield
w iper:
“ I have just smashed into your car.
The people who saw the accident are
watching me. They think I am writing
down my name and address. They are

Only Once
One of the first things a boy learns
with a chemistry set is that he isn’t
likely to get another one.

Three in One
An Irishman, after paying his re­
spects in the cemetery, walked about
looking at some of the tombstones. He
stopped before one engraved: “ Here
lies Sandy McGregor. A generous
father, and pious man.”
“ Humpf,” said the Irishman. “ Just
like the Scots— burying three men in
one grave.”

Just One
It takes a thousand nuts to hold an
automobile together, but just one to
spread it all over the landscape.

N o Jams
every 56
have any
even put
jam ?

has only one automobile for
persons. H ow can the world
respect for a nation that can’t
together a respectable traffic

Big Enterprise
The manager heard that a 30-dollara-week clerk had a new car, and asked
him how he could afford it with four
“ Oh, that’s easy,” said the clerk.
“ There are five hundred of us employed
at this factory, and I raffle off my
wages every week at four bits a

Sign of



Today’s supermarket sells almost
everything, but if you find tires among 4
the groceries, you’re in the wrong
place. That’s a drugstore.

January 30-31—ABA 19th National
Credit Conference, Hotel Utah
and Motor Lodge, Salt Lake City,
February 5-8—ABA 48th Midwinter
Trust Conference, Waldorf-Astoria
Hotel, New York City.
February 12—Iowa Bankers Associa­
tion, Group One Meeting, Sioux
February 22—Iowa Bankers Associa­
tion, Group Eleven, Burlington
Hotel, Burlington.
March 2-4—Annual Convention, Inde­
pendent Bankers Association of
America, Hotel Roosevelt, New
Orleans, La.
March 13-15—ABA 64th National Sav­
ings Conference, Atlanta Marriott
Motor Hotel, Atlanta, Georgia.
March 20-22—ABA National Instal­
ment Credit Conference, Conrad
Hilton Hotel, Chicago.
May 7-9—Nebraska Bankers Associa­
tion Annual Convention, Sheraton-Fontenelle Hotel, Omaha.
May 7-10—ABA National Automation
Conference, The Americana of
New York, New York City.
May 9-12—Iowa Bankers Association,
First Week of Group Meetings.
May 10-12
North Dakota Bankers
Association Annual Convention,
May 16-19—ABA National Mortgage
Conference, Chase-Park Plaza Ho­
tel, St. Louis.
May 18-20—South Dakota Bankers As­
sociation, Rapid City.
May 23-26—Iowa Bankers Association,
Second Week of Group Meetings.
May 29-June 2—AIB National Con­
vention, Statler Hilton Hotel,
June 14-17—American Safe Deposit
Association Convention, Brown
Palace Hotel, Denver.
June 15-17—Montana Bankers Associ­
ation Convention, Jackson Lake
Lodge, Moran, Wyo.
October 8-13—Bank Public Relations
and Management Association An­
nual Convention, Denver Hilton
Hotel, Denver.
October 9-13—Nebraska Bankers As­
sociation Group Meetings.
October 22-25—Iowa Bankers Associ­
ation Annual Convention, Hotel
Fort Des Moines, Des Moines.








“Of course I didn’t enter it . . . your books wouldn’t have balanced if I did.”
Banker, December, 1966
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With all
our best wishes
for a happy,
prosperous 1967!

Io w a -De s Mo in e s
National BanK
Federal Reserve Bank of St. Louis

"yes, w e ' r e h e r e to h e lp y o u s e t w h a t y o u w a n t ! " Bob Buenneke
Assistant Vice President, George Hamagel Assistant Vice President,
Jerry Nelson Vice President, Dale Luckow Assistant Vice President.