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NORTHWESTERN
'O M m /
DECEM BER
1 9 6 8

m u m m

sii

MU

» » ìì

new


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

San Francisco Grandeur—Page 46

MAY YOUR HOLIDAYS
AND THE NEW YEAR BE BLESSED
WITH HAPPINESS AND
GOOD HEALTH


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

3

For men
who get the jum p
on your problem s...

a

TR U ST NORTHERN
Trust Northern to be fast and flex­
ible in serving you. Maybe you’d
like to know how best to invest
short term funds . . . or how to
maximize profits through skillful
loan and deposit forecasting and
cost control . . . or how to get
more new business.
Our men in the field can come
up with the answers—fast, and on
the spot. Supporting them are tal­
ented specialists back at the Bank.
All have a variety of effective ways

to solve problems . . . and you can
be sure they’ll come up with the
most imaginative and profitable
solutions for you !
Try our brand of correspondent
banking. Call or write Mr. N. Hall
Layman, Vice President, Corre­
spondent Banking Department.

NORTHERN
TRUST
COMPANY

BAN K

& MONROE
Chicago 60690 > Financial 6 -5500 • Member F.D.I.C.

NO RTH W EST CO R N ER

No. 1134.

LASALLE

N o rth w e ste rn B a n k e r is pu b lish ed five tim es a m o n th by th e N o rth w e ste rn B an k e r C om pany, 306 F ifte e n th Street, Des Moines, Io w a 50309.

Subscriptions 50c per copy, $6 per year. Second class postage paid at Des Moines, Iowa,
manuscripts, mail items) to above address.


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

Address all mail (subscriptions, change of address, Form 3579,

4

The Bankers’ Market Place
A Page Telling What’s New for Banks and Bankers
Each month the Bankers’ Market Place will bring you listings of new
products, specialty items, banking equipment, and gift items which will
help you and your staff do a better job. This is the selection for this month.

vised a system designed to S.A.V.E.
the ban k in g com m unity tim e, m oney
and effort in its desire to b e tte r serve
its custom ers.
S.A.V.E. s t a n d s for S i g n a t u r e
A uthorization and V erification E q u ip ­
m ent, a new p roduct line designed to
electronically verify custom er signa­
tures.

T he teller can be freed to continue
th e tran sactio n w hile th e positive
verification is m ade over a closed-cir­
cuit television system connected to a
m echanized filing system hidden from
th e cu stom er’s view.
Since no verbal com m unication is
required, th e au th o rization procedure
is handled in a confidential m anner
w hich need nev er em barass th e cus­
tom er.

No longer need a custom er be de­
tained w hile a teller leaves th e statio n
to search th e files for a sig n atu re card.

“W h eth er F o recaster” k it for
farm ers has been developed by
th e C ontinental-Illinois N ational B ank
and T ru st Company, Chicago.
In announcing th e new ly-developed
kit, th e b an k points out th a t effective
farm m oney m anagem ent increasingly
boils dow n to a series of “w h e th e r’s”
—W hether, for exam ple, to in vest in
m ore land, whether to borrow for
m ore m odern equipm ent, whether to
apply m ore fertilizer, w hether to ex­
pand a feeding operation.
C o n tinental’s “W h eth er F o recaster”

R C H engineers at Diebold,
R ESEA
Inc. of Canton, Ohio, have de­

A

YOUR

CHOICE
O F EITHER THE 3 = 27 or 3 = 9 SHEETS W ITH THE
BILT IN C A R B O N S O R C ARB O N LESS TYPE* FOR IM ­

is cu rren tly being offered to all inter- i
ested banks for pass-out to farm cus- '
tom ers. It is actually a k it for cash
flow accounting m ade easy. It contains
all necessary cash flow w orksheets
plus an easy-to-follow 12-page booklet
explaining how-to-do-it and why-to-do- r
it.
The title of the booklet is “Cash
Flow —A M oney Map to F a rm P rofit.” y.
P o inting out th a t for each farm busi­
ness th ere is generally a cash flow
p attern , the booklet goes on to explain
th a t p lotting th is p a tte rn in advance
can provide th e farm er w ith a useful ^
m oney m anagem ent tool.
C ontinental is cu rren tly m ailing
sam ple “W h eth er F o recaster” k its to
several thousand com m unity banks. ”'
A ny b ank not receiving one can obtain
a single kit, along w ith order form s
and price list by w ritin g P. A. Mack,
C ontinental-Illinois N ational B ank and
T ru st Company, 231 South LaSalle**
Street, Chicago, Illinois 60690.
H E unique featu res of M osler ^
financial fu rn itu re and how th ey
can help rem odel a b an k in as sh o rt a
tim e as one w eek-end are described in
a new 6-page brochure.
One of the m ajor advantages dis- v
cussed is th e fu rn itu re ’s m odular con­
struction. Shipped prefinished and
ready to assem ble, the building block
sim plicity of th e counters provides out- ^
standing flexibility and economy.
T hey can be rearran g ed , relocated, or
expanded quickly and easily w ith o u t
d isru p tio n of service and at m inim al
cost.
6
The b rochure illu strates the w ide
range of lockers, draw ers, and other
u n its and decors th a t are available to
m ake up practically any counter
arran g em en t to su it specific needs.
F o r a copy of th e brochure, “Give
Us Your B ank on F rid a y . . .,” w rite to
Mosler, 1561 G rand B oulevard, H am il­
ton, Ohio 45012.

T

MEDIATE DELIVERY. (Often referred to as N C R type!
W rite for samples and prices or send your orders to

BLACK SALE SYSTEM
Fullerton, Nebr. 68638
Telephone number (Area Code 308?
536-2651 and ask for
E. M. Black

Northwestern Banker, December, 1968

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

4 0 th A nniversary for
B o f A Travelers C heques
B ank of A m erica is observing its
40th an n iv ersary in th e tra v e le rs’
cheque business. It sells in excess of
$1 billion cheques ann u ally th ro u g h a *
netw o rk of 23,000 banks in 146 coun­
tries.
F ra n k Risso, w ho suggested B ank
of A m e r ic a en ter th e tra v e le rs’
cheque business back in 1917, re ­
ceived a $1 suggestion aw ard, later
w e n t on to becom e a vice president
and personnel relatio n s officer for th e r
bank. B of A adopted th e suggestion
in 1928.

5

W ins A dvertising Award
M e r c a n t i l e T ru s t Com pany, St.
Louis, and its ad v ertisin g agency,
D’Arcy, have received m en tio n for
a p ain ted em bellished b u lletin in th e
, 36th O utdoor A dvertising Com peti­
tion, sponsored by T he In s titu te of
O utdoor A dvertising. Over 1,000 en ­
tries w ere judged in th is nation-w ide
contest.
The aw ard-w inning sign is p a rt of
a “Bank-at-H om e” prom otion and fea­
tu re s a g ia n t phone. D irector of pub­
lic relatio n s and ad v ertisin g for Merk cantile T ru s t Com pany is O rville R.
Goerger. A rt d irecto r w as E d w ard
Cook; copyw riter, N orm an Bau; pho­
to g raph er, Pagano, Inc. T he b u lletin
r - w as pain ted and erected by St. Louis
O utdoor Com pany.
T he ex h ib it of aw ard-w inning de­
signs is scheduled to tra v e l across th e
c o u n try d u rin g th e y ear for use by
0 outdoor plants, tra d e associations, ad­
v ertisin g clubs, ad v ertisin g agencies
and u niv ersities.

Joins A m erican E xpress
Max S. Sim pson h as resigned as
vice p re sid e n t and controller of AllisChalm ers, M ilw aukee, to join A m eri­
can E x p ress Com pany, New York, as
* senior vice p resid en t for financial ad­
m inistratio n .

, NABW Scholarship Plan
The N ational A ssociation of BankW om en, Inc., a t its re c e n t convention
in C incinnati, adopted a resolution
creatin g a new R egional S cholarship
P rogram . T his program provides th a t
" Scholarships in equal am ounts be
aw arded an n u ally to one w om an in
each of th e 12 regions. The initial
scholarships w ill be for $300, and the
first of th ese w ill be p resen ted at the
regional conferences in 1969 for use
in 1970.
A pplicants for th e R egional Scholar­
ships m u st be reg u larly em ployed by a
national, state or savings b an k or a
tru s t com pany. T hey m u st have been
so em ployed for a t least five y ears and
X m u st be a m em ber of both AIB and
NABW and have atta in e d at least five
certificate courses in AIB.
In te re ste d applicants should contact
th e ir local NABW G roup for applica­
tion form s, w hich w ill be processed by
h e r group. T his group w ill subm it th e
application of th e candidate of its
choice to th e regional education and
tra in in g com m ittee. A pplications m ust
be received by th is com m ittee by J a n u ­
a ry 1, 1969.
H eading th e m idw est regional edu­
cation and tra in in g com m ittee is Mrs.
M arie Peebles, a ssista n t cashier, Cen­
tra l N ational B ank and T ru st Com­
pany of Des Moines.

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

Lots of portfolio advisors
look alike, don’t they?
M aybe your circumstances are like everyone else’s? We don’t think
so. M aybe there are stock answers to your investment portfolios?
Again, we don’t think so. In fact, we’re convinced there’s no easy
way in the investment portfolio business.
We don’t believe in look-alike proposals. And we don’t come up
with look-alike results. For example, one of our correspondent banks
increased its net operating earnings by 46.3% the initial year after
our in-depth study. We recommended and the bank bought securi­
ties at a discount in order to realize capital gains. Our own bank has
an impressive average of 4.73% pre-tax investm ent return over the
past eight years, and no losses on securities.
Our recommendations are put together on an individual basis.
After a lot of homework. Piece by piece. W ith im portant things like
earning assets, loans, and other investments carefully scrutinized.
Sometimes we recommend extensive adjustm ents to achieve higher
yields. In every case, we end up with a tailor-made proposal apply­
ing to your bank’s specific needs.
Get the full story of our investm ent portfolio analysis services.
Call Charlie Schoeneberger this week.

NATIONAL BOULEVARD BANK
OF CHICAGO
WRIGLEY BUILDING • 400-410 N. MICHIGAN AVE.
CHICAGO 60611 • (312) 467-4100 • MEMBER FDIC

N orthw estern Banker, December,

7968

6

If y o u t h in k

your bank already has
E.D.P. transit insurance
ead his.
he daily transactions your bank
sends out for E.D .P. updating
•—how well are they insured by
th at interpretive letter you got with
your blanket bond ? L et’s take a look.
Does th a t letter cover negotiable
instrum ents?
It does not.
Is th a t im portant?
Yes, because E.D.P. processors re­
ceive too m any items th at are not
made non negotiable. This especially
occurs on days of high bank activity.
Does it cover items intercepted at
the Fed or your correspondent and
forw arded by a different carrier to

T

your E.D .P. processor?
The answer is no.
I f a t times you send some trans­
actions by mail, by bus, or by a cus­
tom er, are they insured in transit?
They are not.
W hat about the extra expense of
reconstructing lost items, or costs due
to microfilm failure on such items?
Your blanket bond and interpre­
tive letter do n o t cover these either.
D o they cover your legal liability
on custom ers’ losses resulting from
the transit loss of deposit tickets,
checks, coupons and other items?

They do not. Such losses include
m issed options because the check
sealing the agreement was N S F ; fail­
ure to comply with contract terms
for the same reason; insurance can­
cellations due to missed deadline on
paying prem ium , etc.
You are now covered for none of
th e s e , a n d b e c a u s e y o u a r e n ’t,
Scarborough created a policy that
co v e rs y o u fo r all o f th em . T his
policy is available* only th ro u g h
Scarborough.
Would you like a quotation? Just
mail the coupon.

& COMPANY, 33 N. DEARBORN ST., CHICAGO 60602
Send us a quotation on your E.D.P. Transit Insurance.
B ank__________________________________________________
L ocation_____________________________________________ _
Deposits $____________________________________________
N um ber of Branches, If Any___________________________
By----------------------------------------------------------------------------N orthw estern Banker, November,


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

7968

^except in Kansas, Texas,
and Florida,

T h in kin g ab o u t the n ew
b u ild in g project?
Anticipate the unexpected.

B a n k B u ild in g alw ays doe s.
It’s one way experience helps. So stop worrying. In 4700
previous jobs like yours, Bank Building people have
whipped all kinds of problems in financial building.
And of all these Bank Building projects, 24% is repeat
business. We must be doing something rig h t. . . the
first time! And we know what it is.
It’s designing and building what’s right for effective
work flow to take care of your customers. And when
business grows and you begin to feel cramped, we've
already designed means for your physical expansion.
No problem.
That's what we get for having 56 years of specialized
experience . . . and a nationwide staff of 39 kinds of
specialists . . . designing and building banks, savings
and loans, credit unions. We're always looking out for
the expected . . . and the unexpected.
And that's what you get by working with The Specialists.

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

First C la ss
Permit No.
1146
St. Louis, M o.
BUSINESS REPLY MAIL— No postage necessary if mailed in the United States
Postage will be paid by

2 4 0 S T O C K T O N ST., S A N F R A N C IS C O , C A L IF . 9 4 1 0 8

A ttn: Mr. R. L. Larrabure
51

B ank Building ap p lies all th e
le sso n s of 56 y e a rs ’ e x p erie n ce
o n 4-700 co m p leted projects
to that n e w o n e ... that y o u ’re
going to run at a profit.
These recently completed projects benefit from a depth of background in the planning, design,
construction and furnishing of financial institutions... unique to Bank Building, The Specialists.

Jamaica Savings Bank, Elmhurst, N. Y.

Interior, Jamaica Savings Bank

The Security Bank of Huntington, Huntington, W. Va.

Farmers & Merchants Bank of Central California, Lodi, Calif.

OF AMERICA

Nationwide . . . serving your area
Atlanta / Chicago / Dallas / New York / St. Louis / San Francisco

□

Please send free brochure "Time for Decision."

On or about___________________ we contemplate:
(date)
□

new building

□

modernized quarters

□

new interior

Q

□

Please send a Bank Building consultant to discuss our project w ith us. We understand
there is no obligation involved.

Name

high rise

Title______________

Bank Name
Address
City


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

State

Harlingen National Bank, Harlingen, Texas

9

Elect Iow an to 7th
Federal R eserve Board
F loyd F. W hitm ore, p re sid e n t of th e
Okey-Vernon N ational B ank of C orn­
ing, Iowa, has been elected a d irecto r
of th e F ed eral R eserve B an k of Chi­
cago. T he a n n o u n cem en t w as m ade
b y F r a n k l i n J.
L u n d in g , c h a ir­
m an of th e board.
R e - e le c te d to
th e b o a r d w as
J o s e p h O. W ay m ire, vice p re si­
dent, finance, E li
L illy an d Com pa­
ny, Indianapolis.
Mr. W hitm ore
w
a
s e le c te d a
F . F . W H IT M O R E
Class A director,
succeeding H a rry W. Schaller, p resi­
d e n t of th e C itizens F irs t N ational
B ank, S torm Lake, Iow a. Mr. W aym ire is a Class B director.
Mr. W hitm o re is ch airm an of th e
b oard of tw o o th er Iow a banks, th e
Page C ounty S tate B ank, C larinda,
and th e F irs t N ational B ank, P rescott.
H e w as fo rm erly p re sid e n t of th e H ed­
rick Savings B ank, H edrick, Iowa.
D irectors are elected by m em ber
b an k s of th e S eventh F ed eral R eserve
D istrict for th ree-y ear te rm s beg in ­
n in g J a n u a ry 1. Class A directors
are u su a lly bank ers. Class B d irec­
to rs are not.

Up NASSB D ues
A ssociate m em ber dues for th e N a­
tio n al A ssociation of S u pervisors of
S tate B anks are being in creased an
* average of 38.4 p e r cent, effective J a n ­
u a ry 1, 1969. Dues of su p erv iso ry
m em bers w ill be doubled.
T he rev ised A ssociate M em ber Dues
Schedule cuts th e n u m b er of cate­
gories from 22 to 11. S tate-chartered
b an k s a t th e b ottom of th is schedule,
those w ith less th a n $2.5 m illion in as­
sets, now w ill pay $24 an n u a lly in ­
stead of $15; A ssociates w ith over $450
m illion in resources w ill pay $750 per
y e a r in stead of $500.

C ooper Feed R eports
1 7 0 % Increase In Net
G uy Cooper, ch airm an of th e board,
th e O. A. Cooper Com pany, H um boldt,
* Neb., re p o rts a 170 per cen t increase
of his firm ’s n e t earn in g s before taxes
for th e th ird q u a rte r of 1968 com pared
x- to th a t period in 1967. Incom e for
th e first nine m onths of th is y e a r is
87 p er cent over 1967.
T onnage for October, 1968, increased
16.3 p er cen t over October, 1967. T on­
nage for th e first nine m o n th s of th e
A y e a r is 8.3 p er cent over 1967, accord­
ing to Mr. Cooper.

for your D E C E M B E R , 1968 , reading

74th Y e a r

N o. 1134

EDITORIALS
15

A c ro ss th e D esk fro m th e P u b lish e r

FEATURE ARTICLES
4
27
28
29
30
32
33
38

T h e B a n k e rs ’ M a rk e t P lace
T h e A lm o st F o rg o tte n B a n k D ire c to r— L ew is E . D avids
B a n k e rs P re d ic t M ore G ro w th — M alcolm Freeland
S h a re s H u n tin g T ro p h ie s w ith C o m m u n ity
T h e C o u n try B a n k D ilem m a— Thom as R. S m ith
S h o u ld B a n k s M ake H a s te in E s ta b lis h in g C o n g en erics?
— Dr. P aul S. N adler
T he M a s te r C h a rg e C oncept— H al W. Sconyers
W h a t B a n k e rs T h in k A b o u t T h e ir N ew B u ild in g s

48

R e tire d B a n k e r W rite s H is to ry o f N e b ra sk a C om m u n ity

—A

N orthw estern B a n k er

S u rv ey

STATE BANKING NEWS
Illin o is
M in n e so ta
T w in C ity
S o u th D a k o ta
M o n ta n a
W y o m in g
N o rth D a k o ta

N ew s
N ew s
N ew s
N ew s
N ew s
N ew s
N ew s

50
53
54
64
64
65
66

68
73
74
84
87
98

C olorado N ew s
N e b ra s k a N ew s
O m ah a N ew s
L incoln N ew s
Io w a N ew s
D es M oines N ew s

OTHER FEATURES
106
108
108

In d e x of A d v e rtise rs
C o n v en tio n s C a le n d a r
In th e D ire c to rs ’ Room

NORTHWESTERN BANKER
306 15th Street, Des Moines, Iowa 50309, Telephone (Area Code 515) 244-8163
Chairm an
Clifford De Puy

Publisher
Malcolm K. Freeland

A ssociate E d ito r
Barbara Franklin

E ditor
Ben J. Haller, Jr.
A ssociate E ditor
Ben J. Haller HI

A d vertisin g A ssista n t
Mildred Savich

C irculation D epartm en t
Lena Sutphin

Field R ep resen ta tive
A! Kerbel

Field R ep resen ta tive
Joe M. Smith

A u ditor
Bertha Soderquist
F ield R ep resen ta tive
Paul Masters

Frank P. Syms, Vice President, 663 Fifth Avenue, New York 10022, JUdson 2-7126

N orthw estern Banker, December, 1968

I

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

10

Bankers
j
Cooperative
P ro g ra m

This booklet
tells how
we can help
you help your
customers.
W e are a 35-year-old, expertly
staffed, creatively oriented fi­
nance com pany. A s a result of
ou r years of experience serv­
ing as "e x te n sio n s" of bank
loan services, w e have built a
u n iq ue and m eaningful new
c o n c e p t in c o o p e r a t iv e f i­
nancing. W e call it the "B a n k ­
ers C ooperative Program ."
W e 'd appreciate the o p p o r­
tunity of telling you h o w w e
w o r k — and h o w w e can help
y o u h e lp y o u r c u st o m e rs .
W rite for inform ation.

C ontinental A p p r o v e s F o rm a tio n
o f O ne-H ank H olding C om pa n y
IRECTORS of C ontinental Illinois
N ational B ank and T ru st Com­
pany, Chicago, have approved in p rin ­
ciple plans to form a one-bank hold­
ing com pany w hich w ould acquire
control of th e b an k and be in a posi­
tio n to in vest in financially related
business en terprises. As y e t no deci­
sion has been m ade on th e nam e of
th e holding com pany.
A lthough final details are n ot com­
plete, it is p resen tly planned th a t the
holding com pany w ill acquire out­
stan d in g sh ares of the b an k p u rsu a n t
to a plan of reorganization u n d er
w hich sh areholders of the b a n k w ould
exchange th e ir p resen t b an k shares
for stock of th e new holding com pany
on a share-for-share basis. The pro­
posed holding com pany w ill n ot affect
th e p re sen t operations and personnel
of th e bank.

D

The holding com pany plan is sub­
ject to th e approval of th e Com ptrol­
ler of th e C urrency, and a m eeting
w ill be scheduled a t w hich sh arehold­
ers w ill also be asked to approve the
plan.

Major BB&E A ppointm ents
B ank B uilding & E q u ip m en t Corpo­
ra tio n of Am erica, St. Louis, has an ­
nounced several m ajor executive pro­
m otions.
Ja c k M iner has been appointed to
th e position of vice president, n atio n ­
al sales m anager. Mr. M iner succeeds
E a rl T. Klein, w ho has been prom oted

CDC
2975 Wilshire Blvd., Los Angeles, Calif. 90005
Area Code (213) DU 5-8311
E. T . K L E IN

J. M IN E R

Commercial Discount Corporation
105 W . Adam s Street
C hicago, Illin o is 60603
□ Please have Bankers C oop era tive
Program exp ert call on us.
□ Please send b o o k le t.
Name_______________________________
Bank________________________________
Add ress------------------------------------------------City—-------- ---------------- -------------------------State-------------------------------------- Zip--------C. J. W E IS


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

A m erican E xpress A cquires
Firem an’s Fund
A m erican E x p ress C o m p a n y an ­
nounced th a t all req u irem en ts for the
acquisition of The F u n d A m erican
Com panies have been concluded and
th a t a new subsidiary of A m erican
E x press h as now acquired th e assets
and businesses of th e San Franciscobased holding com pany.
M ajor subsidiaries of The F u n d
A m erican are th e 105-year-old F ire ­
m a n ’s F u n d In su ran ce Com pany and
The A m erican In su ran ce Company.
O ther subsidiaries include the F ire ­
m an ’s F u n d A m erican Life Insurance
Com pany and th e F u n d A m erican In ­
vestm en t M a n a g e m e n t Company,
sponsor of the C om m onw ealth Group
of M utual F unds.

f

_

^

^

v

^
,

Kansas City P rom otions

Commercial Discount Corporation
105 W. Adams Street, Chicago, III. 60603
Area Code (312) 263-5800

Northw estern Banker, December, 1968

to th e new post of vice president, cus­
tom er relations.
Mr. M iner w ill assum e full responsi­
bility for the m anagem ent of th e
firm ’s sales. He has served as B ank
B uilding’s m id-continent sales m an ­
ager since 1957.
Mr. K lein’s new duties w ill center
on th e q u ality control of all subm is­
sions to clients.
B ank B uilding & E q u ip m en t Corpo­
ratio n has also nam ed Carl J. W eis as
a vice president. He w ill d irect p u r­
chasing, construction and related functions. He joined th e com pany in 1943
as a con tract supervisor.
R aym ond F. M attlage has been ap­
pointed to th e new ly established posi­
tion of m anager, purchasing.

R. F . M A T T L A G E

The advancem ent of one officer and
th e prom otion of th ree new officers
has been announced by th e City Na­
tional B ank & T ru st Company, K an­
sas City.
G ary O. Clark, form er a ssistan t
cashier, w as elected a ssistan t vice
p resid en t and m anager of th e G arden
Bank.
In th e b a n k ’s m ajor accounts and
business developm ent division, O. A r­
th u r K rebs w as elected a ssistan t vice
president. In th e b a n k ’s credit divi­
sion, I. W esley Conclron and B ryon D.
M cReynolds w ere prom oted to assist­
a n t cashiers.
H arold Yocum w as nam ed assistant
cashier and credit m anager of Bankm ark C redit d ep artm ent. J. L. Crutzinger w as nam ed B ankm ark coordi­
nator.

+

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11

THE LAWRENCE SYSTEM
. IS INNOVATION
1

Lawrence Warehouse Company has been the national leader in field warehousing for 55 years,
but the physical control of pledged inventory did not seem to be the only answer to assisting
a lender accommodate a borrower. So one successful innovation led to another. And today our wide
range of exclusive collateral protection services enables lending institutions to make profitable
loans that once would have been refused. Among them are:
Field Warehousing (F.W.)
Secured Distribution® (S.D.)
Document Control Services (D.C.S.)
Certified Accounts Receivable Service (C*A*R*S)
Inventory Control Service (I. C. S.)
Certified Inventory Control (C .I.C .)
These are a few of our innovations that lenders recognize as important features of the Lawrence
System. For complete details on their profit-making application just give us a call.

LawrenceWarehouseCarnap
C E R T IF IE D C O LL A T E R A L P R O TE C TIO N S E R V IC E S
N A T IO N W ID E FIE LD W A R E H O U S IN G S IN C E 1913
7
I

37 Drumm Street, SAN FRANCISCO
122 East 42nd Street, NEW YORK • 100 North La Salle Street, CHICAGO
OFFICES IN PRINCIPAL CITIES


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

N orthw estern Banker, December, 1968

12

P ian A H A Aiurketintf S ession
N IT IA L p lans for The A m erican
B an k ers A ssociation’s jo in t m a r­
keting and savings conference have
been announced by Joe H. Davis, p re s­
ident of th e m a rk e tin g /sa v in g s divi­
sion and senior vice p resident, F irs t
N ational Bank, M em phis.
C. Gordon Jelliffe, p resid en t of City
N ational B ank and T ru s t C om pany of
Colum bus, Ohio, is gen eral ch airm an
of th e conference, scheduled M arch 25, 1969, in St. Louis.
Included in th e p re lim in a ry list of
speakers are A.B.A. P re sid e n t W illis

I

A lexander, w ho is also p resid en t of
th e T re n to n T ru st Com pany, T renton,
Mo.; C harles C. E llis, senior vice p res­
id en t and com ptroller, Irv in g T ru st
Com pany, N ew Y ork City; R. S. Laing,
presid en t, N ational Cash R egister,
Dayton, Ohio, and R obert Slater, p res­
ident, Jo h n H ancock M utual Life In ­
su ran ce Com pany, Boston.
“O rganizing and M anaging for P ro f­
its” w ill be th e over-all them e of th e
conference. T he m erged session w ill
replace tw o sep arate conferences p re­
viously scheduled.

A H A P la n s fo r H air ali
L notice of th e 95th a n ­
OFnFuICalIAconvention
of T he A m erican
B an k ers A ssociation in H onolulu,
Septem ber 28-October 1, has been
m ailed to A.B.A. m em bers.
W ith th e m ailing is a b ro ch u re de­
scribing p rocedures for req u estin g ho­
tel rese rv a tio n and tra n sp o rta tio n , reg­
isterin g in advance, and co ntaining
in form atio n ab o u t pre- an d post-con­
ven tio n tours. C om pleted re g istra tio n
reserv atio n form s should be sen t to
th e A.B.A. C oordination C enter, Trav-

el C onsultants, Inc., 1025 C onnecticut
A venue N.W., W ashington, D. C.
The post office cancellation date on
th e envelope in w hich th e official registra tio n /re se rv a tio n form is m ailed
w ill determ ine the order in w hich as­
sig n m en ts are made.

N am e M osler E xecutives
C linton M. S tark s has been appoint­
ed executive vice p resid en t in charge
of th e secu rity p roducts and office sys­
tem s divisions of The M osler Safe

C. M . S T A R K S

D . J. H O B B S

Com pany, a subsidiary of Am ericanS tandard, it w as announced by William A. M arquard, Jr., presid en t of
M osler and an A m erican-Standard ex­
ecutive vice president. Succeeding
Mr. S tarks as vice presid en t and gen­
eral m anager of the b an k and com ­
m ercial division is Daniel J. Hobbs.
Mr. S tark s joined T he M osler Safe
Com pany in Ju n e, 1959, as p lan t manager in H am ilton.
Mr. Hobbs has been vice president
and director of in d u strial and em ­
ployee relations for Mosler, and m an­
ager of corporate in d u strial relations
for A m erican-Standard.

*

,

New Arizona E xecutive
L ester M. G o ld b e r g , nationallyknow n b an k ad m in istrativ e officer,
has been elected
a vice presid en t
-'S
of th e Valley N a­
t i o n a l B ank of
A rizona
and
nam ed director of
p la n n in g a n d
m a rk etin g for the i
s t a t e w i d e finan­
cial organization.
M r. G o ld b e r g
r e t u r n s to A r i­
L. G O LD B ER G
zona and the Val­
ley B ank after serving as vice presi­
d en t and m anager of th e b anking de­
p a rtm e n t of Booz, A llen and H am il­ L
ton, Inc.

C

Com m erce Bancshares
A cquires Ninth M issouri Bank

With over 1000 branches throughout
Canada and around the world and an
international network of correspond­
ents — the Bank of Montreal is well
qualified to help you and your clients
north of the border and throughout
the world. Write or visit any one of
our five United States offices.

DigitizedN for
FRASER
o rthw
estern Banker, December, 1968
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

B a n k o f M o n tre a l
Canada's First Bank
C o v e rs C a n a d a ...S p a n s th e W orld

Chicago: Board of Trade Bldg.
141 W. Jackson Blvd.
New York • Houston
San Francisco • Los Angeles • Sacramento
MORE THAN 1000 OFFICE'S • ASSETS EXCEED $6 BILLION

The $28 m illion K irkw ood B ank lo­
cated in S outhw estern St. Louis Coun­
ty has signed an affiliation co ntract
w ith Com m erce B ancshares, Inc., of
K ansas City. I t is th e n in th b an k in
M issouri to join th e grow th-oriented
reg istered b a n k h o l d i n g com pany.
A fter th e tran sactio n has been completed, to tal assets of Com m erce Banc­
sh ares w ill approxim ate $780 m illion.
T otal n et o perating earnings of Com­
m erce B ancshares for th e first nine
m onths of 1968 am ounted to $5.9 million. On Septem ber 30, 1968, the hold­
ing com pany had total stockholders’
equity of $85.5 m illion.

^

13

C ït S Ü S F R U IT

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cmmmmr

crmm mmr

e m u s FR U IT

a m ?

f r u it

These are the people
of The First National Bank of McAllen, Texas

This is
“their office” in
New York
FIRST

Citrus fruit is important business in McAllen,
Texas. And, in McAllen, The First National
Bank is not only important to business but wellknown for its ability to get things done. To get
things done in New York and throughout the
world, the people of The First National Bank
of McAllen rely on their correspondent rela­
tionship with C itibank. It’s their New York
“office” for a broad range of banking and
related services.
If you’d like to get things started with Citi­
bank, write our Correspondent Bank Depart­
m ent, 399 P ark A venue, New Y ork, N. Y.
10022. Or call 212-559-4832.

N A T I O N A L CITY B A N K
Member Federal Deposit Insurance Corporation


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

Northw estern Banker,

December, 196$

14

W henever you need it...

Merc’s "Red Carpet” Service
is just a phone call away

IN JUST 58 SECONDS -a c c o rd in g

to
current Telephone Company surveys—you can complete an average
call to your “Man from Merc.” And that’s all the time it takes to
learn that our Red Carpet is a symbol of warm, personal service.
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TRUST
COM PANY r r

ST. LOUIS. MISSOURI

Phone: 314-23L3500

Northw estern Banker, December, 1968

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

15

A C R O S S ike D E S K
[jMmt the PuM uhei
Cbawc (Rudolph, CL. (p&biAAfiVL:

Q su c v t, d n jd b m v J > . (B h im n W L . :

P resident, B a n k o f A m erica, N .A .,
S a n Francisco, C alifornia

M ember, Board o f Governors o f the
F ederal R eserve S ystem , W ashington, D. C.

A ddressing a m eeting of the C alifornia Canners
an d Grow ers A ssociation, you u rg ed a massive
overhaul of federal farm policies th a t would in ­
clude the phasing out of price supports, subsidies
and acreage controls.
You explained, “A ny new farm policy m ust be
geared to the dignified retirem en t of the sm all
farm . A ny o ther course is a futile attem p t to
paddle u p stream against a stro n g and irreversible
economic tid e—it cannot be done.”
You em phasized th a t w hatever farm program is
developed “m ust help solve the problem of the
sm all farm er, not p erp etu ate his m arginal ex­
istence.”
P erh ap s one solution has been offered by a p ra c­
tical co u n try b an k er from E l D orado, K ansas.
Cliff Stone, p resident of the W a ln u t V alley S tate
B ank in E l D orado, points out th a t we m ay be
m issing the boat by looking only a t the tre n d
to w ard bigness in agriculture. He suggests th a t
we should, in fact, encourage the part-tim e fa rm ­
er-in d u strial w orker—the m an who lives on the
acreage and who provides his fam ily the ad van­
tages of co u n try living, and who gains some of his
livelihood from a m odest farm ing operation and
some from an in d u strial job in the n earb y town.
Mr. Stone adm its th a t these sm all farm units
are less efficient th an the large operations, tak en
alone, b u t w hen they are accom panied by off-thefarm em ploym ent, a h appy solution in m any (a l­
though by no m eans all) of our declining ru ra l
areas can be achieved.
E x p lain in g th a t his suggestion is in no w ay a
cure-all, he asks, “W hy not encourage ra th e r th an
discourage this ? W hy should it be easier to get a
90 p er cent real estate loan on a nonproductive
house in tow n th a n a 50 p er cent loan on a 40-acre
farm which can a t least p a rtia lly ca rry itself ?”
Some a g ric u ltu ral authorities im ply th a t only
farm s w ith m inim um sales of $20,000 to $40,000
can survive. A num ber of young farm ers ju st
g ettin g started , who possess the ingredients of
success, have n ot yet attain ed the scale th a t fully
utilizes th e ir m anagem ent capacity. P erhaps Mr.
S tone’s ideas will also help this group. A t the
very least, his ideas m ay be the answ er to the
“dignified retirem en t of the sm all fa rm .”

In a recent address before the ABA C redit C ard
Conference in Chicago, you com m ented on bank
cred it cards and th eir im pact on sm all banks.
W e feel th a t your rem arks, as follows, will be of
real in tere st to our read ers :


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

“A t the current level of credit-card o u tstan d ­
ings, th ere is no reason to suppose th a t a complete
credit-card plan is an essential service for a bank.
I t m ay be a desirable service, b u t it rem ains a
relatively m inor p a rt of banking. B anks can
specialize in other areas or they can substitu te
other services. The num ber of banks offering
check-credit and o v erd raft plans indicates the
viability of this alternative.
“Should a sm all bank not be p rep ared to offer
its own credit-card plan, th ere is in m ost areas
the altern ativ e of being an agent of another bank.
Then it is still able to service its m erchan ts’ ac­
counts, and it is usually able to recom m end cards
fo r its custom ers. M oreover, m any banks do not
re g a rd agent statu s as an inferior alte rn a tiv e ; it
has the advantages of m inim izing cost and risks
while still offering a credit-card service. M ore­
over, the spread of franchise plans and the de­
velopm ent of the jo in t credit-card association as
a form of organization m ake it easier fo r sm aller
banks to offer a credit-card service. A nd as our
credit-card re p o rt showed, m any sm all banks
have offered th eir own plans for some time.
Therefore, I see no reason to m odify the con­
clusion reached in the credit-card re p o rt th a t the
sm all banks as a group will not be adversely
affected by the spread of credit-card plans, or for
th a t m atter, check-credit plans.
“Some questions w ere also asked about how
custom ers of small banks w ould fa re if th eir
present banks h ad not offered cards. The answ er
is quite clear. I f no other bank in the area offers
cards either, th ere is no change from the present.
If another bank does operate a plan, custom ers
can still apply fo r cards w ith th a t bank and, if a
m erchant, open an account in order to accept the
other b an k ’s cards. They do not have to give up
th eir cu rre n t ban k in g connections to use the
credit-card service.”
Northw estern Banker, December, 1968

16
glaries, and larcenies and to assist in
th e identification and apprehension of
D eposit In su ran ce C orporation, the persons w ho com m it such acts;
(2) to establish tim e lim its w ith in
C om ptroller of the C urrency, and the
F ed eral Home Loan B ank Board—con­ w hich each in stitu tio n m ust comply;
sulted w ith each o ther extensively in and
(3) to req u ire th e subm ission of re­
fo rm u lating th e ir d rafts. The purposes
ports w ith respect to the installation,
of each reg ulation are:
(1)
to establish m inim um standards m aintenance, and operation of secu rity
w ith w hich all affected in stitu tio n s— devices and procedures.
T he staffs of the four agencies re ­
b anks and savings and loan associa­
ceived advice from law enfor-cement
tions—m u st com ply w ith resp ect to
officers, banks, equipm ent m a n u factu r­
th e installation, m aintenance, and
ers, and trad e associations. T he pro­
operation of secu rity devices and pro­
posed regulations differ w ith each
cedures to discourage robberies, b u r­
o th er in some details, b u t each re ­
quires affected institutions:
(a) to designate a security officer;
(b) to develop a w ritte n secu rity
program spelling out in detail th e
secu rity procedures for each office of
the institution;
(c) to in stall lights, door locks, su r­
veillance system s, and robbery and
b u rg lary alarm s; and
(d) to subm it an an n u al certification
of com pliance w ith th e regulations,
and re p o rt w hen ev er a robbery, burglary, or larceny is attem pted.

1

Explain Itank P rotection A ct
IHE th re e F ed eral b an k in g agencies
and th e F ed eral H om e L oan B ank
B oard have each issued for public
com m ent proposed reg u latio n s im ­
p lem en tin g th e B ank P ro tectio n Act
of 1968. A fter consideration of these
com m ents th e agencies plan to p u b ­
lish final reg u latio n s by J a n u a ry 6,
1969, as req u ired by Public L aw 90389, w hich w as signed by P re sid e n t
Jo h n so n on Ju ly 7, 1968.
T he four re g u lato ry a u th o ritie s—th e
F ed era l R eserve Board, th e F ed eral

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H eads B o f A N ational
D ivision In San Francisco
B ank of A m erica Vice P resid en t Pe­
te r M. N elson has been appointed as­
sista n t to th e executive in charge of
th e n ational divi- A .
sion in th e San
F r a n c i s c o head
office.
The advance­
m en t of Mr. Nel­
son to assist Sen­
ior Vice P resid en t
A l v i n C. R i c e
heads a list of C
changes in th e de­
partment t h a t
p. M. N ELSO N
m ain tain s a com­
plete ban k in g relatio n sh ip w ith m a­
jor firm s th ro u g h o u t th e nation.
4.
Succeeding Mr. N elson as head of
th e electrical products, aerospace, con­
tra c to rs and m edia section is Vice
P resid en t J. R. Russell.
-A

Who paid a billion dollars
for our institutional bonds?
Since 1913, we have u n d erw ritten and sold m ore than a billion
dollars w orth of institutional bonds. W ho bought them? In­
dividual investors, tru st com panies, credit unions, pension
and insurance funds. A nd h undreds of banks! Right now,
m any of our in stitutional bond issues are yielding as high as
7°/o. They are w ell w orth your looking into . . . for your own
portfolios . . . or for your custom ers.

Bank o f New Y ork
P rom otions

B. C. ZIEGLER and COMPANY
West Bend, Wisconsin 53095 * 414-334-5521
BRANCH O FFIC ES:
New York • Chicago • St. Louis • San Francisco • Minneapolis • Milwaukee • Toledo
Memphis • Dubuque • Appleton • Green Bay • Madison • Fond du Lac • Kenosha
Fort Atkinson • La Crosse • Wausau • Rockford • Springfield • Peoria

V________________ ____________
N orthw estern Banker, December,


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

7968

J

The B ank of N ew Y ork has ad­
vanced G erard P. Dillon to th e post of ▼
com puter services officer and Roger
S. Phelps, Jr., and E ugen e J. Sherm an
have been nam ed a ssista n t vice presi- p
dents, Sam uel H. W oolley, p resid en t
and chief executive officer, announced.
Mr. W oolley also announced th e ap­
po in tm en ts of K enneth B ran d n er as
assistan t com puter services officer and r
of M ichael K atos and Jo h n J. Malone,
Jr., as a ssistan t real estate officers.

IT

Som etim es
you have to upset
the applecart
to move more
x apples.

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At Manufacturers Hanover, our National Division officers’
number one job is to get things moving for you. Sometimes it’s a
little upsetting for us. But it works for you.
OUR MOVERS IN THE MID-WESTERN STATES:
John J. Evans, John F. King, George R. Bennett, Carl G. Carlson, N athaniel S. Howe, Jr.,
Russell H. Eichman, Frederic J. Sears, Thomas I. C hatfield
. . . i t ’s g o o d to h ave a g re a t b a n k b e h in d you

M A N U FA C T U R E R S H A N O V ER TR U ST
Member Federal Deposit Insurance Corporation

)


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

Northw estern Banker, Decem ber, Í<P6&

/ta n k P /I M A ta /t e s M ítines
H E B ank Public R elations and
M arketing A ssociation has a n ­
nounced th a t Des M oines w ill be th e
site of one of its regional m eetings in
1969. T he m eeting w ill tak e place at
H otel Savery, A pril 15-17.
O ther regionals w ill be held at the
M arrio tt M otor H otel, P hiladelphia,
A pril 13-15, and th e A tkinson Hotel,
Indianapolis, A pril 23-25. The a n n u al
convention w ill be held at th e A m eri­
cana Hotel, Bal H arbour, Fla., N ovem ­
b er 2-7. F u rth e r inform ation m ay be
obtained from B ank PRM A h ead q u ar­
ters, 120 W est M adison, Chicago.

T

board, F irs t N ational Bank, C entralia,
Kan., w ho has served since 1960 and
asked th a t his nam e n o t be placed in
n om ination again. Mr. L earned w as
re-elected for a second term , having
been on th e board since 1966.
Mr. O’Leary, w ho is chairm an of
th e board of th e Peoples State Bank,
L uray, w as state b an k com m issioner
from mid-1958 to mid-1963, and w as
appointed again last year for an o th er
four-year term . He is expected to re ­
sign th a t post to assum e the R eserve
B ank board position.

New l()th Fed D irectors

First o f Chicago To
Raze Old B uilding

Jo h n A. O’Leary, K ansas S tate B ank
Com m issioner, and S tanley L earned,
form er p resid en t of P hillips P e tro ­
leum Company, B artlesville, Okla.,
have been elected directors of th e
F ed eral R eserve B ank of K ansas City.
Mr. O’L eary and Mr. L earn ed w ere
elected by F ed eral R eserve m em ber
banks in G roup 3, those w ith capital
and su rp lu s of $300,000 or less. T h eir
three-y ear term s begin J a n u a ry 1,
1969. Mr. O’L eary w ill fill th e posi­
tion on th e board now held by B u r­
ton L. L ohm uller, ch airm an of th e

The F irs t N ational B ank of Chicago
has aw arded th e co n tract for razing
its p re sen t 18-story h e ad q u arters build­
ing to H arv ey W recking Company,
Chicago.
D em olition is scheduled to begin in
Septem ber, 1969, follow ing com pletion
of th e b a n k ’s m ove into its new 60sto ry h e ad q u arters building and v a­
cating of th e p resen t b an k building.
The new building occupies th e n o rth
half of th e block bounded by D ear­
born, Monroe, C lark and M adison
S treets. The p re se n t bank building,

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o f P h ila d e lp h ia

J
N orthw estern Banker,

December, 1968


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

W illiam E. B arrere has been elected
vice presid en t in
th e national ac­
counts d e p a rt­
m en t of SeattleFirst National
Bank, Seattle.
M r. B a r r e r e ,
w h o rep resen ts
S ea ttle -F irst N a­
tional in th e Mid­
w e s t, h a s b e e n
w
ith the bank
W . E. B A R R E R E
since 1954 following his g raduation from th e University of W ashington.

A cquires Lebanon Interests
U nited C alifornia B ank In te rn a tio n ­
al, w holly-ow ned subsidiary of U nited
C alifornia Bank, Los Angeles, has
com pleted arran g em en ts to acquire an
im p o rtan t m in o rity in te re st in B anque
Du C redit P opulaire S.A.L., B eirut,
Lebanon. U nited California B ank In ­
te rn atio n al is an E dge A ct b ank head­
q u artered in New Y ork and engages
p rim arily in financing in tern atio n al
trade.

“ C om puterized” T ickets
At Chase Manhattan

for 1 year

fo r

Seattle Prom otion

B anque Du C redit P opulaire oper­
ates as a com m ercial b an k w ith head
office in B eiru t and a b ran ch in T rip ­
oli. I t w as founded in 1962 by Joe I.
Kairouz, presid en t and general direc­
tor.

DOANE’S
MONTHLY
FARM
NEWSLETTER

Farm ing

covering th e south half of th e block,
w ill be replaced by a landscaped plaza,
due for com pletion in 1972.

T he Chase M an h attan Bank, New
York, is now selling tickets to m ajor
en tertain m en t, th eatrical and sports
events th ro u g h a com puterized elec­
tronic box office in th e banking facil­
ity at its head office at 1 Chase M an­
h a tta n Plaza.
The tick et o utlet ties in w ith a n a­
tionw ide com puter n etw o rk operated
by T icket R eservation System s, Inc., a
New York-based firm w hich began its
com puter tick et service in Ju ly in
N ew York and Los Angeles.

4 6 M illion View ers
The T ennessee E rn ie F o rd n etw ork
television special, w hich opened the
1968-69 season for th e F o undation for
F u ll Service B anks, a ttracted an esti­
m ated 46 m illion view ers, R ichard B.
Beal, foundation executive vice presi­
dent, announced.

19

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Federal Reserve Bank of St. Louis

N orthw estern Banker, December, 196$

20

M ieh ig a n M a g S u pervise
O ne-H ank H olding Com panies
H E M ichigan B an k ers A ssociation
has announced it has proposed
legislation to legalize and supervise
b an k holding com panies and b ring
one-bank holding com panies u n d er th e
su pervision of th e state b an king de­
p artm en t.
The association has proposed lim it­
ing one-bank holding com panies to
financially related acquisitions.
If th e proposal is passed by the
state legislature, M ichigan w ould be
th e first state in th e n atio n to place
one-bank holding com panies u n d er
state supervision. T here are no oneb an k holding com panies in th e state.
H ow ever, th ere are b anking chains on
an inform al, non-holding com pany
basis.
The legislation w hich includes a re ­
codification of th e sta te ’s ban k in g code
four y ears in th e m aking w as approved
“overw helm ingly” a t a m eeting of th e
association’s legislative com m ittee.

T

WALKER

“ We are very grateful for
THE PICTURE
Publications
”

writes Harold Walker, V. P.
THE HOME NATIONAL BANK of
Arkansas City, Kansas

“ We feel that The Picture
Publications are the most effec­
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have ever been able to offer.
They have certainly helped our
customers to do a better job —
for themselves as well as for
us at the bank. We are grateful
for this information. ” Harold
W alker, Vice President.

The better way to find
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E A R L F. C R O U S E

RON D ILLIN G H A M

P R E S ID E N T . & EDITOR

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Northwestern Banker, Decem ber, 1968


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

30 p er cent h ig h er th a n the previous
y ear.”
A ssets a t $6.8 billion w ere up n ear­
ly $700 m illion from a y ear earlier;
loans a t alm ost $4,100 m illion, up $268
m illion, and deposits a t $6,230 m illion,
up $621 m illion.

)H

A dvance Chase E xecutives
T he ap pointm ents of W illard C.
B u tcher and R obert K. Schell as executive vice p residents of the Chase
M an hattan B ank w ere announced.
T hey w ill become effective J a n u a ry 1,
1969.

'r*

New Morgan D irector
W. G raham Claytor, Jr., presid en t
of th e S outhern R ailw ay System , has
been elected a director of M organ
G u aran ty T ru s t Com pany of New
York, it w as announced by T hom as S.
Gates, ch airm an of th e board.

Bank o f M ontreal R eport
In v estig atio n of all governm ent
spending program s and establishm ent
of new p rio rities are u rg en tly needed
to control continuing inflation and to
im prove conditions in th e m ark et for
long-term funds.
G. A rnold H art, ch airm an and chief
executive officer of th e B ank of Mon­
treal, expressed th e view at th e b a n k ’s
151st ann u al general m eeting last
m onth.
M edicare and o th er “ex trao rd in arily
expen sive” s h a r e d - c o s t program s
“m u st be reassessed jo in tly (by fed­
eral an d provincial governm ents) and
b ro u g h t u n d er stric t control by a com­
m on effort,” Mr. H a rt said. O therw ise
th e p rogress tow ards reasonably equal
stan d ard s of social services across th e
co u n try m ay be jeopardized.
S h areholders also h eard J. L eonard
W alker, senior executive vice p resi­
d en t and general m anager, re p o rt an
increase of 30 p er cen t in n et op erat­
ing earnings and new year-end record
highs in assets, loans and deposits.
Mr. W alker said th at, a t th e 151st
fiscal year-end on October 31, “balance
of revenue, generally considered the
b est m easure of a b a n k ’s perform ance,
am ounted to $67.7 m illion, m ore th a n

R. K. S C H E L L

W . C. B U T C H E R

Mr. B utcher, 42, w ill become head
of C hase’s in tern atio n al d ep artm ent,
succeeding H erb ert P. P atterso n , w ho
w ill assum e th e presidency of th e
b ank n ex t M arch.
Mr. Schell, 41, w ill become head of
C hase’s U nited States d ep artm ent, suc­
ceeding Jo h n B. M. Place, w ho has
been elected vice chairm an of th e X
board.
Mr. Schell has been a senior vice
p resid en t in th e b a n k ’s U nited States £
d ep artm en t, w ith responsibility for a
group h an dling C hase’s b anking rela­
tions in 20 states in th e m idw est,
so uthw est and w est coast, as w ell as
th e aerospace division. He w as grad­
uated from M anhattan College w ith *
h ig h est honors, and began his career
w ith th e B ank of th e M an h attan Com­
pany w hich m erged w ith Chase Na- j
tional in 1955 to form Chase M anhat­
tan.

N am ed to FDIC Post
A lan R. M iller, a v e te ra n FDIC of- ^
ficial, has been nam ed a ssistan t to
Irv in e H. Sprague, recen tly appointed
director of th e C orporation.
Mr. M iller has headed th e Philadel- T i
phia d istrict as su p erv isin g exam iner
—one of th e 14 FDIC districts in
w hich th e n atio n is divided.
Mr. Miller, age 45, is a native of
K ansas and g rad u ated from th e Uni- f
v ersify of K ansas m ajoring in finance.

V. /

21

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Northwestern Banker, December, 1968

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

22

M a jo r
H r a U g
F irst N a tion a l C ity
H E F irs t N ational City B ank,
N ew York, has announced details
of a m ajor re s tru c tu rin g of its in te r­
n al organization th a t m akes a sh arp
break w ith tra d itio n in th e com m er­
cial b a n k in g field.
In place of long-established b an k in g
alignm en t along fun ctio n al and geo­
graphic lines, C itibank is adopting a
com pletely m ark et-o rien ted p lan de­
signed to m eet th e w idely d iv erg en t
needs of its corporate, com m ercial, in ­
vestm en t and p ersonal b an k in g cus­
tom ers.
The re su lt of a 15-month stu d y by
m ore th a n 100 C itibank officers and a
m anag em en t consu ltin g firm w o rk in g
u n d er th e d irection of Vice C hairm an
J. H ow ard L aeri, th e reorg an izatio n
plan w ill be o perational by Ja n u a ry
1, 1969.
C orporate business fo rm erly m an ­
aged by th e b a n k ’s national, special­
ized in d u stries and m etro p o litan divi­
sions w ill be th e resp o n sib ility of a
new corporate b an k in g group u n d er
E xecu tiv e Vice P re sid e n t E d w ard L.
P alm er, w ho has headed th e n ational
division.
The corporate b an k in g group w ill
be responsible for all corporate ac­
counts regardless of th e ir location and
w ill be divided in to sep arate divisions
serv in g th e special needs of four
broad business categories: financial in ­
stitu tio n s, e x t r a c t i v e , energy and
processing industries; capital goods
producers and tra n sp o rta tio n system s;
and consum er goods and services in ­
dustries.

T

n i n e n

to r

A fifth division w ill be responsible
for o p erating su p p o rt to the o th er di­
visions in th e areas of cash m anage­
m ent, corporate tru s t activities and
secu rities handling for correspondent
banks.
All of the b a n k ’s business w ith re ­
tail custom ers a t its 170 b ranches in
N ew Y ork City, N assau and W estches­
te r w ill be th e resp o nsibility of a new
p ersonal ban k in g group headed by
Senior Vice P resid en t Jam es D. F a r­
ley, fo rm erly executive vice p resi­
den t of T he M ercantile B ank of Can­
ada, a C itibank subsidiary.
A new com m ercial b an k in g group
u n d er th e supervision of Senior Vice
P re sid e n t T hom as F. C ream er, cu r­
re n tly head of th e m etropolitan divi­
sion’s b ran ch es in low er M anhattan,
w ill handle th e business of m edium ­
sized firm s located in th e New York
m etro p o litan area, and firm s of all
sizes in in d u stries largely concen­
tra te d in th e city such as th e gar­
m e n t and com m odities business.
The p resen t tr u s t and in v estm en t
division has been renam ed th e in v est­
m en t m anagem ent group an d w ill con­
tin u e u n d er th e direction of E xecu­
tive Vice P resid en t R obert L. Hoguet.
The g ro up is divided in to tw o u n its
serv in g th e differing needs of perso n ­
al and in stitu tio n al in v estm en t cus­
tom ers. I t w ill also be responsible for
th e b a n k ’s to tal relatio n sh ip w ith
high n e t w o rth and high incom e indi­
viduals.
The new organization w ill include

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Northw estern Banker, December, 1968


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

ic fe ^ D ia x , V.P. & Gen. Mgr.

FOUR SENIOR OFFICERS a t 1st N atl.
C ity Bk. discuss new responsibilities un­
der m ark et-o rien ted in te rn a l reorganizatio n p lan w hich w ill become operational
on Ja n u a ry 1, 1968. Prom le ft are Edward
J. Palmer, ex. v.p., who w ill head the new
corporate b a n k in g group; James D. Far­
ley, s.v.p., who w ill d irect th e personal
b a n k in g group; Thomas F. Creamer, who
w ill head th e com m ercial b anking group;
William I. Spencer, who assumed supervi­
sion of the op eratin g group N ovem ber 1.

->S

^

a top policy and plan n in g group
w hose m em bers w ill be divorced from
line responsibility.
T his group includes R ichard S. P e r­
kins, ch airm an of th e executive com­
m ittee, w ho w ill provide policy guid­
ance to the in v estm en t m anagem ent
group, th e bond division and th e pub­
lic and g o vernm ent relations d ep art­
m ent; Mr. L aeri, w hose spheres of in ­
te re st w ill include the corporate b an k ­
ing group, th e econom ics d ep artm en t
and th e ban k in g com m unity; Thom as
R. W ilcox, vice chairm an, w ho w ill
provide policy advice to th e personal
ban k in g group, th e com m ercial b an k ­
ing group and head of th e u rb a n af­
fairs com m ittee and George C. Scott,
ch airm an of th e cred it policy com m it­
tee, w ho w ill continue to head th a t
com m ittee and th e m oney com m ittee
and provide policy direction to F irst
N ational City O verseas In v estm en t
C orporation.
T he reorganization plan m akes no
change in th e role of th e b a n k ’s tw o
V
senior officers, C hairm an George S.
Moore and P re sid e n t W riston, or in
th e organizational stru c tu re of the
o perating group and overseas banking
group.
y
E xecutive Vice P resid en t W illiam I.
Spencer, w ho has been head of the
specialized i n d u s t r i e s division, as­
sum ed direction of th e operating
group last m onth, succeeding E xecu­
tive Vice P re sid e n t H. L ansing Clute,
w ho re tire d afte r 41 y ears w ith the
bank. E xecutive Vice P resid en t G.
A. Costanzo w ill continue to head the t"
b a n k ’s overseas operations.

c

23

American State Bank of Mankato

First National Bank of Detroit Lakes

American State Bank of Wessington Springs First National Bank of St. Peter
Bank of Union County
First National Bank of Wayzata
Brooklyn Center State Bank
Gambles Continental State Bank of St. Paul
Chicago Lake State Bank of Minneapolis
Glen Lake State Bank of Minnetonka
Citizens State Bank of Norwood

Golden Valley State Bank

State Bank of Faribault
State Bank of Hamburg
State Bank of New Ulm
State Bank of St. Anthony Village
State Bank of Worthington
Summit State Bank of
Richfield-Bloomington

Citizens State Bank of St. Louis Park

Guaranty State Bank of St. Paul

Columbia Heights State Bank

Olmsted County Bank of Rochester

Edina State Bank

Pierre National Bank

University National Bank of Minneapolis

Prior Lake State Bank

Valley National Bank of Eagan Township

Richfield Bank and Trust

Valley National Bank of Mankato

Rushmore State Bank of Rapid City
Security State Bank of Albert Lea

Valley National Bank of Sioux Falls
Valley State Bank of Yankton

Security State Bank of Kenyon

Winona National and Savings Bank

Exchange Bank of Lennox
Farmers and Merchants Bank of Huron
Farmers and Merchants State Bank
of Iroquois
Farmers and Merchants Bank and Trust
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L

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

© Servicem arks owned by B ankAm erica Service Corp.

Northw estern Banker, December, 1968

24

estern Banker , December, 1968
DigitizedNorthw
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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

26

IMAGINATION
Another good reason why more banks
do business with Chase Manhattan
than any other bank in the world

The bank with the wide
world reach offers you
imagination, vision,
creativity, innovation, scope
—just five of the compelling
reasons why bankers continue to rely on
Chase for comprehensive banking service.
We refuse to be stifled by banking
convention.
As a m atter of fact, we thrive on all
sorts of way-out service requests.
As a thorough-going banker’s bank for
the last 100 years we have all the routine
correspondent services in a commanding
grip, but we go far beyond.
We do have a little touch of something
extra that seeks aggressively to get
things done for you.
Try us and see.
THE CHASE MANHATTAN BANK
N .A ./l Chase Manhattan Plaza, N.Y., N.Y. 10015 • Member FDIC

North western Banker, December, 1968


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

The .1 /m ost
LEWIS E. DAVIDS
Hill P rofessor of
B ank Management
University of Missouri
Columbia, Missouri

H E sw ing of th e b u siness cycle,
legislation and social attitu d es
ten d s to b rin g to th e fo refro n t of
atte n tio n th e special exp ertise or posi­
tions w hich are c u rre n tly considered
im p o rtan t. In tim es of w ar, th e soldier
c ertain ly is m ore acclaim ed th a n in
peace. In tim es of g re a t technological
change, th e scien tist is in his prim e.
W hen th e re are sho rtag es of goods and
hig h dem and, firm s ten d to choose as
th e ir top executives in dividuals w ith
en g ineerin g know-how. W h en goods
are in p len tifu l supply and dem and for
goods is low, th e engineer is replaced
in sta tu s by th e sales and m ark etin g
ex p ert. W hen m oney is tig h t, th e
finance officer is g y rated to w ard h ig h er
ra n k in g in th e executive hierarch y .

T

Renewed Attention
The role of th e b an k d irecto r is now
receiving belated recognition of its
im portance. In fact, th e en tire p ro v ­
ince of directors, be th e y of banks,
o th er financial in stitu tio n s or of oth er
types of businesses, is being singled
o u t for closer ex am ination and evalu a­
tion.
N ot since th e early th irtie s, w hen
th e large n u m b er of b an k failu res and
a tte n d a n t losses to stockholders as
w ell as to depositors raised a flu rry
of law su its ag ain st boards of directors
for negligence and som etim es w orse,
h as th e re been th e w idespread and
deep-seated in te re s t in b an k directors.
W h at has caused th e public to be in ­
terested and w h a t are th e im plications
th is has on banks, g o v ern m en t su p e r­
viso ry a u th o ritie s and on th e directors
them selves?
I t indeed w ould be oversim plifica­
tio n to ascribe th e concern to any one
factor. I t is ra th e r a com bination of
circum stances. B y th o u g h tfu l consid­

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

Forgotten
ttntik D ireetor
eratio n of them , we m ay be able to
judge th e im pact on banks and society.
T erm s such as the “b anking revolu­
tio n ” have been common for th e last
eight years. The “rev o lu tio n ” has had
its origin in several different factors.
T hey have altered th e responsibilities
of b an k directors in not only th e legal
b u t in th e social sense.
H isto rian s ten d to be classified in
one of several categories. One group
feels th a t h isto ry is created by th e acts
of o u tstan d in g individuals, an o th er
group feels th a t it is th e events w hich
are foreordained, in tu rn creating the
individuals. Still an o th er school be­
lieves th a t economic developm ents
lead to social and political change. The
episodic school p u ts g reater em phasis
on random ness and chance.
The alm ost forgotten b ank director
is receiving renew ed a tten tio n in m any
of th e above classifications. F o r dec­
ades, u n til th e 1960’s, banks and th e ir
boards rem ained ra th e r passive, nonin novative and for th e m ost p a rt con­
te n t not to “rock th e boat,” even
th ough th e y w ere grad u ally losing
th e ir h isto ric share of th e financial
m ark et. D irectors w ere n ot in m ost
cases called upon to m ake the cliff­
han g in g types of policy decisions
w hich could radically a lter th e secu­
rity of th e ir bank. T hen a nu m b er of
different factors, some feeding on
them selves, rapidly have changed the
picture.
Computer Introduction
The in tro d u ctio n of th e com puter
and th e adaption of th e check w ith
m agnetic in k ch aracter recognition u n ­
doubtedly has been a prim e source of
in creasin g th e d irecto r’s role. B ank
d irecto rs determ ine policy, n ot opera­
tions of th e ir bank. T he decision to

com m it th e b an k to autom ation w as a
m ajor d ep artu re from previous w ays.
I t w as a su b stan tial expense w ith u n ­
know n resu lts and w as a difficult de­
cision for m ost directors.
The p rev ailin g concept of o rd in ary
diligence and care on th e p a rt of di­
recto rs w as n o t a satisfacto ry guide­
line for th e perceptive director. H e
could see dow n th e economic road
problem s th a t th e salary stru c tu re of
those new ly em ployed for E D P w ould
cause, d isto rtin g th e existing salary
p a ttern , n o t only of em ployees b u t
officers as w ell. In addition, th e deci­
sion on an E D P system led in sev eral
diverse directions and o pportunities.
F o r exam ple, th ere w as th e buy o r
lease problem . The capacity of th e
com puter raised th e question of cus­
tom er service and th e n to increased
sophistication in record m an agem ent
and in form ation system s for decision
m aking, n ot only on th e p a rt of oper­
ating officers, b u t for directors as w ell.
National Bank Expansion
Now th a t Mr. Saxon is no lo n g er
com ptroller and his decisions as com p­
tro ller have had a chance to be
w eighed in a less em otionally charged
atm osphere, it w ould be th e consensus
of both his p roponents and his oppo­
n en ts th a t he altered and shook-up
banking and in so doing th e d irecto rs
of banks. His opening of th e door for
national banks to engage in a w id er
sphere of activities h it directors in sev­
eral w ays. The n a tu re of being p er­
m itted g re a te r latitu d e for com petition
m ade directors review th e ir policies.
W ould th e y stan d still or w ould th e y
com m it th e ir b ank to th e expense and
BANK DIRECTOR . . .
(T u rn to page 82, please)
N orthw estern Banker, December,

1968,

28

1st N ational o f Chicago C onference

Bankers Predict M ore Growth
By MALCOLM FREELAND
Publisher

AUTIOUS optim ism m ig h t b est de­
C
scribe th e tone of th e p re se n ta ­
tions and sem in ars held at th e 22nd
an n u a l co rresp o n d en t b a n k confer­
ence h ere last m o n th by th e F irs t N a­
tional B ank of Chicago for over 1,300
v isitin g bankers.
Special in te re st w as show n in th e
ta lk given by Dr. P au l S. N adler, asso­
ciate p rofessor of finance a t New Y ork
U niversity, on th e subject, “Should
B anks M ake H aste In E stab lish in g
C ongenerics?” The full te x t of his re ­
m ark s ap pears in th e featu re section
of th is issue.
The in d u stry outlook sym posium
conducted by th e divisional vice p resi­
d en ts of th e bank, w as a h ig h lig h t of
th e conference. P rospects for b an k
earn in g s are of key in terest, and th is
su b ject w as discussed by W illiam T.
Dw yer, vice p resid en t in charge of
D ivision F (C orrespondent B anks).
Mr. D w yer m entioned th a t 1968 w ill
m ark th e six th consecutive y ear of
earn in g s increases for banks. It is his
belief th a t in 1969 loan dem and w ill
averag e out stro n g and loan rates w ill
average out at p re se n t levels. He
foresees a m odest increase in b an k
earn in g s n e x t year.
Views p resen ted by o th er divisional
heads w ere as follows:
George C. Bergland, vice president,
D ivision A (Food): “W ith production
of w h eat and soybeans ru n n in g 10 to
15 percen t above dem and, chance for
price im provem ent in th e n ex t several
m onth s is small. F eed grains, also
a t record levels, are in som ew hat b e t­
te r balance. The price outlook is firm
th ro u g h mid-1969. Significant expan­
sion in cattle feeding and hog p roduc­
tio n w ill b rin g prices u n d er dow n­
w ard p ressu re.”
Robert L. Heym ann, vice president,
Division B (Retail Trade): “R etail
Northw estern Banker, December, 1968


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Federal Reserve Bank of St. Louis

store profits for 1968 should show a
nice gain over last year, an d I feel
th e re ta ile r w ill show im proved earn ­
ings in th e first half of 1969.”
Robert D. Jndson, vice president,
Division C (Steel): “Steel sales have
rem ained at v ery high levels and in ­
v en to ries are being w orked off faster
th a n anticipated. Im p o rts have soared,
how ever, and account for about 16 per
cen t of U. S. consum ption. S tronger
com petition from im ports m ay lie
ahead. D em and for steel in 1969 w ill
continue to be stro n g .”
J. Russell Hanson, vice president,
Division I) (Consumer): “The sh arp
rise in spending since mid-1968 should
m oderate and inflationary pressu res
begin to slow. C urrently, consum ers
spend ju st u n d er 94 cents out of ev­
ery take-hom e dollar and are saving
th e rem aining 6.2 cents. T his com ­
p ares w ith a 7.4 per cent savings rate
in 1967.”
Richard E. Wilier, vice president,
Division E (Housing): “T he year
1968 should re su lt in a m odest recov­
ery w ith new housing sta rts reaching
a seasonably ad ju sted an n u al rate in
excess of 1,475,000. T his is still inade­
q uate to m eet th e huge backlog of de­
m and. New housing sta rts in 1969
should be in th e area of 1,750,000 to
1,800,000. The grow ing shortage of
labor and building m aterials and th e
a v a i l a b i l i t y and cost of m ortgage
financing w ill be d eterm in in g factors.
John E. Corrigan, vice president, Di­
vision G (Transportation): “T otal re v ­
enues for th e dom estic airlin e in d u s­
tr y for 1968 are expected to be $5.03
billion, w hich is a 14 p er cent in ­
crease over 1967. N ext year, rev e­
nues w ill be up an o th er 15 per cent.
D epreciation and in te re st charges on
new equipm ent w ill cause profit m ar­

gins to suffer th ro u g h 1969. The out­
look for th e railro ad in d u stry should
be som ew hat optim istic and the well
operated railro ad s should show im ­
proved profits in 1969.”
H.
James Douglass, vice president,
Division H (Motion Pictures): “Local
th e a te r operators are show ing profits
over 35 p er cent ahead of 1967. D ur­
ing 1969, we expect fu rth e r progress
for th e in d u stry . The im portance of
revenues from TV and foreign sources
cannot be overstressed.
James A. Bourke, vice president,
Division J (Construction): “Shortage
of w o rk ers in th e building trad es is
th e g reatest co n strain in g factor in the
co nstruction in d u stry . B uilding m a­
terials com panies w ith stro n g rep re­
sen tatio n in resid en tial and m ulti-fam ­
ily and mobile hom e construction
should fare w ell in 1969.”
Milton C. Haase, vice president, Di­
vision K (Aerospace): “The outlook
for th e A erospace in d u stry appears
som ew hat m ixed. A g g r e g a t e sales
should rise about $1 billion from the
$29.4 billion level in 1968. H igher
labor ra te s and high developm ent
costs w ill continue to re stric t profits
in 1969.
The outlook for a g ricu ltu ral credit
w as discussed by B en n ett L. Hauenstein, vice president. Mr. H auenstein
foresees a continued incom e squeeze
for farm ers and a fu rth e r decline in
th e nu m b er of farm ers. He indicates
th a t th ere w ill be stro n g pressures for
com m ercial farm ers to move tow ards
m ore con tract types of production and
in teg rated operations. F arm ers w ill
m ake g re a te r use of fu tu res m arkets,
and in th e y ears ahead successful
farm ers w ill be those having a gross
incom e of $40,000 or m ore, according
to Mr. H auenstein.—End.

29

Shares
Hunting Trophies
With Community
F YOU happen to v isit th e F irs t N ational B ank of Bow m an, N. D., you
m ig h t w ell be able to do w h at th e title of th is y e a r’s academ y aw ard w in ­
n in g song,“T alk to th e A nim als,” indicates. B ut even if you a re n ’t in te r­
ested in carry in g on a conversation, you can ’t help noticing th e m any o ut­
stan d in g big gam e h u n tin g trophies w hich decorate th e in terio r of th e b ank
building.
T he trophies come from th e collection of Jo h n Rouzie, p resid en t of the
bank, an d his wife, w ho have been for several y ears avid big gam e h u n ters.
T h eir expeditions have tak en th em to places as far aw ay as A laska and th e
A rctic Ocean, A frica and India.
M ost of th e tro p h ies on display a t th e b an k w ere tak en on the R ouzie’s
h u n tin g expeditions from 1945 to th e present. Two o u tstan d in g tro p h ies in
th e collection are a lion, tak en on a 1964 expedition to A frica, and a polar
bear, d ating to a h u n tin g trip to th e A rctic Ocean a t K otzebue and P oint
Hope, A laska, in 1962. (See p ictu res above.)
W hen it becam e necessary to expand the b a n k ’s q u a rte rs recently, th e facili­
ties w ere enlarged a little m ore th a n absolutely necessary so th e trophies
could be rem oved from th e Rouzie hom e and displayed in th e bank, w here
people of th e en tire com m unity and su rro u n d in g te rrito ry could view them .
T he tro p hies n ot only create an u n u su al ban k in g atm osphere, b u t also a ttra c t
m an y new custom ers to th e bank.
A ccording to Mr. Rouzie, “T he nu m b er of v isitors we have had certain ly
vindicates our ju d g m en t to m ove th e trophies. W e have 50 to 100 people a
w eek from out of our te rrito ry stop and v isit w ith us and go th ro u g h our
bank. I t is som ething for w hich w e hope people w ill rem em ber our sm all
tow n.”
The F irs t N ational B ank w as c h artered in 1907------th e sam e y ear in w hich
B ow m an w as founded. C u rren tly th e b an k has to tal footings of over $10,000,000 in a tow n of approxim ately 1,700 population.
In addition to th e Rouzies, several o th er b ank personnel also enjoy hunting.
—End.

I

BLUE MARLIN' tak en by Mrs. John
Rouzie on a fishing trip off th e C alifornia
coast is displayed a t the 1st N atl. Bk.
n e a r an elephant tu sk arch.

HUNTING- TROPHIES of John Rouzie, pres., 1st. N atl. Bk. of Bowm an, N. D., an d w ife decorate in te rio r of Bowm an bank.
Northwestern Banker, Decem ber, 1968

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Federal Reserve Bank of St. Louis

30
N R EC EN T y ears co u n try b anks
have sh arp en ed th e ir efforts, th ey
have upgraded th e ir abilities, th ey
have em ployed m ore able people and,
as a segm ent of a g re a t in d u stry , th ey
have progressed.
F o r 15 years, in m y experience, we
have discussed th e form idable obsta­
cles to co n ten tm en t and bliss in th e
country. So h e re w e are, discussing
the “dilem m a” th a t still co n fro n ts us.
T his “dilem m a” m u st be a form idable
one because it has en d u red “lo, th ese
m any y e a rs ” in th e face of our b est
efforts.
In relatin g to th e problem and delv­
ing into m y experience, an o th e r dilem ­
m a en co u n tered m an y y ears ago
comes to m y m ind. In m y y o u th it
appeared as form idable, unsolvable,
drudgery. Its five-letter w o rd can p e r­
haps apply to our “dilem m a” today—
SPADE.
S—system or, in m odern v ern acu lar,
th e “estab lish m en t.”
P —people in com m unity b a n k in g and
ru ra l areas.
A—autom ation.
D—developm ent, a b e tte r econom ic cli­
m ate for our area.
E—exchange or m ore money.
L e t’s b re a k it into its com ponents
so it becom es digestible.

I

W.

The 1 aun try.
■ Following are excerpts from a speech
delivered by Thomas R. Smith, president
of the First National Bank, Perry, Iowa,
before the ABA's 17th National Agricul­
tural Credit Conference in Oklahoma City,
Okla.

In m ost cases, to d ay ’s f a r m m an ­
ager lays th e cost of m oney dow n be­
side th e profit op p o rtu n ity and m akes
his decision. I recall a young farm er
looking a t 7 per cent m oney to finance
an expanded hog operation. H is re ­
tu r n on in vestm ent, realistically cal­
culated, w as 25 p er cent. He m ade
th e decision to proceed and w ould
have done so if th e in te re st cost had
been 10 per cent. Or th e farm er look­
ing a t land acquisition to expand his
crop base. A 9 p er cent projected re ­
tu rn overrode th e 7 per cent m ortgage
loan cost.
System
W h at I ’m saying is th a t in terest
“S” is for th e system . W h a t’s ra te lim itations, be th e y legal or psy­
w ro n g w ith th e system th a t co n trib ­ chological, in m ost cases 50 y ears or
u tes to th e dilem m a? The repressive
older in th e ir origin, are archaic and
elem ents of th e system ap p ear as fol­ obsolete and don’t conform to to day’s
lows:
econom ics in agriculture. It behooves
U nrealistically low ra te lim ita- us in th e co u n try to ex ert every edu­
• tions on loans in som e states, or cational and political effort to update
areas, cu rtails or elim inates p a rtic ip a ­ these lim itations.
tion by natio n al lenders. F o r exam ­
The lim itations on lending powple, in Iowa, w e have a 7 p e r cent
• ers in ban k s are sim ilarly g ran d ­
m axim um rate. W hy should an y lend­ m o th er oriented. As a n ational bank,
er w a n t to m ake a farm m ortgage we can loan a single borrow er up to
loan in Iow a at 7 p er cen t w h en he
10 p er cent of our capital stru ctu re;
can m ake it in N ebraska at 8 p er in certain prescribed situations, we
cent? He ju s t can ’t ju stify it to his can exceed th is lim itation. W e com­
in v estm en t com m ittee, let alone to his pete w ith state banks in Iow a w ho
shareholders.
can loan a single borrow er 20 per cent
of th e ir capital stru c tu re and in cer­
In addition, m an y of us in ru ra l
areas have a m en tal block rate-wise. ta in p rescribed situations th ey can ex­
P erh a p s you have h eard th e old w ives’ ceed th a t lim itation. I don’t profess
tale, “You can ’t pay m ore th a n 6 p er to know th e exact percentage th a t is
cent for m oney on th e farm .” Mod­ absolutely correct. I do feel, how ­
e rn farm m an ag em en t looks a t in te r­ ever, th a t th e 10 per cent lim itation
on n atio nal ban k s is n o t realistic for
est costs a fte r tax es as th e tru e cost.

1

2

Income Tax
Bracket
19 ..................
25 ..................
32 ..................
39 ..................

Net Interest After Taxes
Interest Rate
9
8
6
7
per cent
per cent
per cent
per cent
7.29
6.48
............ 4.86
5.67
6.75
6.00
5.25
............ 4.50
6.12
5.44
4.76
............ 4.08
5.49
4.88
............ 3.66
4.27

N orthw estern Banker, December, 1968


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Federal Reserve Bank of St. Louis

10
per cent
8.10
7.50
6.80
6.10

y

to day’s m a rk e t for co u n try banks. I t
is our prerogative, as free m en, to ex­
e rt such influence and in telligent doc­
u m en tatio n as w ill cause its change.
T he restrictio n s, real or im agined,
• on our ability to red iscount pa­
per, sell notes or borrow m oney are a
~j~
p a rt of th e system w e face. In m y ex­
perience, th is lim itation rests in th e
lap of th e com m unity banker. L oans
pro p erly m ade com m and particip a­
tion. Those aggressive banks in ru ra l
<
areas w ith good abilities can com­
m and assistance from th e ir corre­
spondent banks. T hey can organize
ap p ro p riate p articip atio n s w ith gov- ^
e m m e n ta l agencies, such as th e Small
B u s i n e s s A d m inistration and th e
F a rm e rs Hom e A dm inistration. T hey
do have arran g em en ts w ith an in su r­
ance com pany for m ortgages and agri- _
b u siness te rm loans. T hey aggres­
sively seek, cultivate and n u rtu re
these relationships. These aggressive
1
b a n k e r s have arran g em en ts w ith
neighboring b an k ers to exchange over­
lines. I feel th e “h u r t” w e express in
th is area is generally a self-inflicted
w ound.
The F ed eral R eserve System recent- +
ly has announced some proposals de­
veloped to update th e rediscount w in ­
dow operation. I am sure you are gj
fam iliar w ith them . I have attended
tw o explanation m eetings and have
studied it carefully; it appears to me
to offer a valuable step in th e rig h t
direction as financial assistance to
com m unity banks. T he h igher p er­
centage of b o rrow ing ab ility for th e
longer term s offer relativ ely g reater
accom m odation to com m unity banks r i
th a n any adverse affect th e y m ight
have on to tal natio n al m oney supply.
The concern of th e F ed in its ap­
proach to th e problem gives me com­
fort. R egional cred it pools, or some
sim ilar clearing house, could w ell
bear additional study.

(

31

Hank

The system o utlines th e ru les of th e
game. In an y gam e som ebody w ins
and som ebody loses. T he w in n e r has
y adapted h is ab ilities to m axim ize th e
benefits or m inim ize th e lim itatio n s
of th e rules. In our decade of change,
th e race no longer necessarily goes to
th e sw ift, n o r th e b a ttle to th e strong,
b u t to him w ho stay s loose.
People

“P ” is for people. H istorically, we
in ru ra l b an k s have seen th e b e tte r
educated, th e m ore able, th e m ore
energetic and th e m ore aggressive
— m ove to g re a te r o p p o rtu n ity in m et­
ro p o litan areas. T hey have gone b as­
ically u n n o ticed in th e clam or over
th e m ig ratio n of th e unskilled, u n ed u ­
cated, less energetic. As a resu lt, m e­
d iocrity h as ten d ed to en d u re in th e
co u n try bank. T he sad th in g about
m ediocrity is you can ’t fire it and you
can ’t prom ote it; you ju s t te n d to tolerate it. People, th e rig h t people, w ill
solve problem s.
A t th is p o in t in tim e, it seem s to me
th e m an ag em en t ab ility of th e m odern
fa rm e r exceeds th a t of his b a n k e r
4- c o u n te rp a rt in tim e. T his m ass of
m ediocrity leads lives of q uiet d esper­
ation. A y oung loan officer in our
b an k recen tly atten d ed a b an k m eet­
ing in c en tral Iow a on “F a rm M anage­
m en t.” In re p o rtin g on th e m eeting,
he indicated th a t m ost of th e tim e
w as sp en t discussing th e increasin g
costs of fa rm in g and th a t too m uch
T m oney w as sp e n t b y farm ers for fe r­
tilizer and chem icals. I w as appalled
a t such a view th a t com pletely d isre­
gards th e law of dim in ish in g re tu rn ,
th e econom ics of d eterm in in g th e
profit o p p o rtu n ities of th e in v estm en t.
I ’m rem in d ed of th e group of boys
w ho b u ilt a club house in a b ack yard.
In th e in te re sts of harm ony, th ey
y p ain ted a sign over th e door, “No­
body th in k big, nobody th in k little,

Hil

everybody th in k m edium .” T hinking
m edium m ay serve harm o n y in a
group of boys, b u t it doesn’t survive
in th e com m unity bank.
If we w ill prosper, we m u st em ploy
in o u r in d u stry th e b rig h test, m ost
able, best educated skills w e can buy.
T hese are th e innovators, th a t top 5
p er cen t or so of th e people. T hen
w e need to challenge th em w ith prob­
lem solving and opportunity; give
th e m o p p o rtu n ity enough to m ake
m istakes; and com pensate th em com­
m e n su ra te w ith th e expansion th ey
can su rely b rin g to th e co untry. A
frien d of m ine recen tly w as try in g to
h ire a young college tra in e d agricul­
tu ra l sp ecialist for $400 p er m onth.
The people I ’m talk in g about are cost­
ing $675 to $700 p er m onth. T hey
don’t w a n t to be note tellers for 10
years. T hey should have loan a u th o r­
ity in a y ear or less. L et’s get our
sh are of these people in our ru ra l
areas.
D on’t overlook up g rad in g th e skills
of th e people w e already have. W e
can ’t afford th e lu x u ry of m ediocrity.
A broad v a rie ty of clinics, schools,
conferences and tra in in g program s
are available for enhancing th e ir
skills. Look a t th e population of th is
co u n try — 100 m illion — 140 m illion —
198 million; it w as all done b y u n ­
skilled labor, b u t th ey liked th e ir
w ork. E n th u siasm for th e effort in ­
volved, th a t’s th e in itial step. M an­
agem en t m u st lead in th is effort.
My friend, Jo h n E d C ham bers, p res­
id en t of th e D anville S tate Bank, D an­
ville, Ark., about eight y ears ago,
serv in g as p resid en t of a $1 m illion
b an k show ing an ann u al profit of
$7,000 in a county th a t w as 40 per
cent n atio n al fo rest and h ad m ore
th a n a 40 per cent decline in popula­
tion in the previous decade, m ade a
decision to go into th e b an k in g b u si­
ness. In th e n ex t eight years, the

en thusiasm he g enerated resu lted in
an $8 m illion b an k today w ith an n u al
profit in excess of $100,000. Commu­
n ity b an k in g needs m ore Jo h n E d
Cham bers.
Automation
“A” is for autom ation. Believe me,
it is n eith e r th e cure all n or th e ogre
th a t it m ay be rep resen ted as or sup erstitio u sly regarded. F e a r of th e
un k n o w n has th w a rte d m an y com m u­
n ity banks from m aking a decision. I
feel th e p a tte rn a t th is po int is clear;
th e m ap is clearly m arked; th e die is
cast.
If you w ill survive and prosper as a
co u n try bank, you m u st “th ro w in ”
w ith a system , e ith er a correspondent
ban k or an autom ation center, and
au to m ate as rap id ly as possible. All
system s m u st be “GO.” The old ac­
counting m achines are as out of date
as th e m ilk maid. If y o u r b an k has
n o t m ade th e decision, y o u ’re stan d ­
ing a t th e post. In addition to au to ­
m atin g yo u r ow n shop, th e various
custom er services—farm accounting,
payroll, accounts receivable—are on
th e w ay. T his direction deserves th e
b est a tten tio n of m anagem ent now;
th e re should be no dilem m a here.
Development

“D” m eans developm ent. N ever in
recen t h isto ry has th e clim ate been
m ore favorable for ru ra l developm ent.
N ational atte n tio n is focused on th e
u rb a n problem s; in d u stry is seeking
decentralization; go v ern m en t is de­
signing to p rev en t fu rth e r ru ra l em i­
g ratio n to th e cities. A ggressive lead­
ership in m any ru ra l areas is a ttra c t­
ing in d u stria l grow th. In d u stria l re v ­
enue bond restrictio n s ten d to favor
DILEMMA . . .
(T u rn to page 36, please)
Northw estern Banker, December, 1968

)

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Federal Reserve Bank of St. Louis

32

Should Banks M ake Haste
In Establishing Congeneries?
By DR. PAUL S. NADLER
Associate Professor o f Fi narice
New Y o r k University, New Y ork

H E T H E R th e one b an k hold­
ing c o m p a n y becom es th e
m ost significant developm ent
of th e b an k in g in d u stry in th is cen­
tu ry or n o t is u p to th e final decision
of the re g u la to ry au th o rities and leg­
islators.
Yet even tho u g h th e re is som e doubt
as to w h e th e r th is form of diversifica­
tion w ill ev en tu ally be declared ille­
gal, a g re a t m an y b an k s have a n ­
nounced th e estab lish m en t of th ese
so-called congeneries as a w ay of
b reak in g o u t of th e tra d itio n a l lim its
of b an k operations.
M any oth er b anks th a t have n o t an ­
nounced one b an k holding com panies
have been looking seriously a t th e
trend, w on d erin g w h a t to do.

W

Self-Examination
T h eir dilem m a has been serious.
F o r on th e one h an d th e y do n o t w an t
to establish congeneries m erely be­
cause o th er b an k s have set th em up.
The b a n k in g in d u stry has now learned
th a t w h a t is good for one b an k need
n o t be good for an o th er. T hus, unlike
1962, w hen a v ast n u m b er of b an k s
followed th e leaders in m oving to a 4
p er cent p ay o u t on passbook savings,
even th o u g h h in d sig h t indicates th a t
th e y need n o t have done so, th e b a n k ­
ing in d u stry is being m ore selective
th is tim e, w ith each b an k exam ining
th e value of th e new stru c tu re for it­
self.
Yet, th e re is th e fear th a t if too
m uch tim e is ta k e n in analyzing th e
tre n d before action is taken, th e h esi­
ta n t ban k s w ill be left out.
F o r it is possible th a t th e a u th o ri­
ties w ill h a lt the tre n d to one b ank
holding com panies b u t w ill let those
already established continue th e ir
operations u n d e r so-called “g ra n d ­
fa th e r clauses.”
T his is w h a t m akes some b an k s an x ­
ious to act now, even tho u g h th e ir
Northw estern Banker, December, 1968


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Federal Reserve Bank of St. Louis

investig ation of the congeneric form
is not com plete as yet.
Advantages
T he m ajor advantages in establish­
ing a one-bank holding com pany are:
1. G reater freedom to diversify.
2. More flexibility in capital m anage­
m ent.
3. G reater o p p o rtu n ity to obtain ta l­
e n t by paying tra d itio n al salaries in
th e b an k ing area an d paying a differ­
en t set of salaries in o ther areas.
4. T he holding com pany can borrow
m oney and use it to buy stock in the
b an k so as to raise capital of th e
bank.
5. If b an k is over-capitalized, divi­
dends can be paid out to th e holding
com pany so th a t it can use the m oney
for o th er purposes.
G. T he holding com pany can go into
areas w h ere the b an k can “get a piece
of th e action.”
Disadvantages
A re th ere any disadvantages to act­
ing now and establishing congenerics? It is h ard to see any real disad­
v antages to settin g up th e form and
being p rep ared to diversify in this
m anner, except if a b an k m ay have
w an ted to establish a reg u lar holding
com pany at a later date. F o r if a
b an k ev entually w anted to set up a
tw o or m ore b ank holding com pany,
it w ould come u n d er regulation and
w ould undoubtedly be forced to divest
itself of th e non-bank operations th a t
can now be u n d ertak en .
T his is a real question to some
banks. F o r th ey m u st decide now
w h e th e r th e ir fu tu re p ath lies in ex­
pansion th ro u g h com bination w ith
o th er b an k s th ro u g h th e holding ro u te
or in diversification into o ther serv­
ices and areas th a t up to now have
n o t been considered as p a rt of b an k ­
ing.

One can really have doubts here as
to w hich w ay to tu rn . F o r in some
states th e holding com pany ro ute appears to be th e only w ay in w hich
fu tu re expansion can take place, w hile
in others th e w inds of change are
blow ing, and it m ay be possible to
have y o u r cake and eat it too by di­
v ersifying th ro u g h a congeneric and
expanding inside th e b an k in g indus­
try th ro u g h m erger. G uessing w hich
w ay th e state legislature w ill go m ay
th u s be an o th er aspect of th e decision
w h e th e r to establish a congeneric or
not.
Bank’s Ideas
A p art from this, th e one question
in h e re n t in establishing th e form for
a congeneric now th a t m ig h t lead to
h esitatio n is w h a t th e im pact w ill be
on th e b a n k ’s im age in th e com m u­
nity.
If custom ers of th e b an k see th e
estab lish m en t of th e one b an k holding
com pany and th ey fear th a t th e b ank
w ill s ta rt com peting w ith them for
business, th is could lead to loss of
business to o ther banks th a t did n o t
announce diversification plans.
In addition, if a b ank announces th e
form ation of a congeneric and th e n it
does not c arry th ro u g h w ith diversification, it could h u rt its im age in th e
com m unity, as it w ould appear to be
a paper tig er th a t talk s b u t does not
act.
Is th ere a chance of a b ank not being
able to carry th ro u g h w ith plans for
diversification even if th e one bank
holding com pany form rem ains legal?
V ery definitely. F o r it m ay w ell be
th a t th e g reatest draw back to th e con­
generic form is not th e legislature b u t
ra th e r th e shortage of tale n t in th e
b ank itself.
_______________________________________

^

y

<

'"V

y

^

^

^

i

CONGENERICS . . .
(T u rn to page 36, please)

(

33

The M aster Charge Concept

* In the following article, Hal W.
Sconyers, president of the Western States
Bankcard Association, presents the "plus"
side of bank charge card services. Mr.
Sconyers* comments are part of a contin­
uing series of N O R T H W E ST E R N B AN K ER
articles probing the current bank charge
card rush. Comments of presidents of sev­
eral leading bank charge card systems
were published in a November N O R T H ­
W EST ERN B A N K E R survey— "Should Smaller Banks Offer Charge Cards?"

-

F E W y ears ago only an occa­
sional b a n k e r w ould hav e called
b an k charge cards an essential
’> b a n k service. T oday th is concept . . .
th o u g h still far from u n iv e rsa lly ac­
cepted . . . is rap id ly gaining favor in
th e ban k in g in d u stry . A nd as the
evidence co ntinues to come in from
banks all over th e co u n try . . . m ost
recen tly from the ban k s b ehind th e
n atio n a l M aster C harge system . . . it
is ap p a re n t th a t th e b an k charge card
> can be a profitable source of new b u si­
n ess for banks.
Indeed, a case can be m ade th a t
-j
profit alone is reaso n enough to go
into th e charge card business. W e are
th e last to argue ag ain st such a posi­
tion. W ith som e b an k s th e charge
card is alread y becom ing a h ighly
profitable service. B u t th e re ’s m ore to
+ th e charge card th a n an expectation of
profit. T he m a rk e tin g im plications of
th is new service are far-reaching, and
w ith it th e b a n k in g in d u stry is en ­
te rin g a new era of financial service
for its custom ers.

A

A Long-Term Involvem ent
In addition to profits, therefo re, the
b an k s charge card offers th e b an k . . .
as p a rt of th e w hole b an k in g system
. . . th e o p p o rtu n ity to get in on th e
ground floor of th e auto m ated financial
w orld of th e fu tu re. T hese are two
q u ite d ifferent concepts. The sh o rt­
te rm profit o p p o rtu n ity is re a l and
practical. The long-term involvem ent,
> though, could ev en tu ally provide a
g re a t deal m ore in profit o p p o rtu n ity
because its scope is so m uch greater.
;


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Federal Reserve Bank of St. Louis

L e t’s look first a t th e short-term
values of th e b ank charge card to the
bank. The im m ediate advantages to
th e bank, of course, arise out of the
charge account p lan ’s value to the
b an k in g public:
The b an k charge card p erm its a
b a n k to open new ban k in g rela­
tio n sh ip s w ith its c u rre n t custom ers
and b u siness custom ers.
I t also enables a b an k to go out­
side its c u rre n t deposit lists and
a ttra c t new custom ers am ong consum ­
ers and re tailers alike.
I t also gives a b an k a facility for
com peting m ore effectively in
th e p ersonal loan area (th ereb y se t­
tin g about re cap tu rin g one of its "lost
o p p o rtu n ities”).
W ith these bases, a b an k is in a
position to em bark on an in te n ­
sive program for cross-selling its serv ­
ices to retailers.
T he charge account plan also of­
fers th e b ank an o p p o rtu n ity to
develop new business relatio n sh ip s in
businesses and occupations w h ere con­
su m er credit has n ot been readily
available, such as grocery stores, bus
lines, b e au ty salons and hospitals.
s F in ally . . . as th e charge beo) comes used m ore in th e large
appliance field . . . it also p erm its
b an k to recap tu re some of th e revolv­
ing cred it business lost to finance
com panies.
F o r th e fu tu re, th e b ank charge
card w ill serve as a prim e tool in en­
abling b anks to handle m ore efficiently
th e flow of funds th ro u g h th e b an k ­
ing system . This is th e first step
to w ard th e less check/less cash soci­
ety. A t p resen t th is concept conjures
u p a ra th e r m ore rem ote period in the
fu tu re, b u t if th e ban k in g system is
to function as a vital and coherent
w hole, it w ill only do so if it serves
the b an k in g public as a prim e financial
m over. C redit for individuals, re ta il­
ers and service organizations is obvi­
ously such a prim e b anking function.

t

B u t th ere is no th in g in hu m an h isto ry
w hich says th a t banks have an in ­
violate rig h t to provide for the public’s
credit needs.
The Association Concept
The u n d erly in g prem ise of the
W estern States B ankcard A ssociation
concept perm its banks to join together
w ith a com m on card in order to com­
pete m ore effectively w ith each other.
In general, eith er of tw o m ark etin g
situations m ay exist. F irst, th e m ark et
m ay be too sm all for a b ank to be able
to cover itself successfully alone. Or,
both th e m ark et and th e b an k m ay
be too sm all to ju stify inv estin g in the
necessarily heavy start-up costs and
equipm ent investm ent. On such term s,
it is obvious th ere are few banks in
the co u n try w ho could n o t p articipate
profitably in a b ank card association.
At present, 142 banks com prise the
W SBA program in six states of the
w est. B oth u n it banks and banks w ith
b ranch offices are represented. F o u r
m em bers have over $1 billion in as­
sets; 16 have over $100 million; 42 have
u n d er $10 m illion, and the sm allest
has assets of less th a n $2.4 million.
One h u n d red tw o M aster Charge
banks are full m em bers; 40 are asso­
a ciates. F u ll m em bers issue cards and
sign m erchants. A ssociates only sign
m erch an ts and do n ot issue cards.
The essence of th e W SBA plan is
th a t each b ank has com plete au to n ­
om y in m a r k e t i n g decisions and
credit policies affecting its bank.
T herefore, each b ank solicits its own
cardholders and m erch an ts . . . in com­
petition w ith all o ther banks. I t sets
its ow n discount rates and credit
standards. I t can advertise and pro­
m ote its own M aster Charge card as
strongly or as lightly as it w ants.
Such ad v ertisin g will, of course, use
th e approved M aster Charge design
and color. I t m ain tain s th e sam e exMASTER CHARGE . . .
(T u rn to page 34, please)
Northw estern Banker, December, 1968

34

F irst « # ' K a n sa s C ity F la n s
H e y is to r e d Hants H o ld in y Co.

MASTER CHARGE . . .
(C ontinued from page 33)
elusive co n tract w ith its own card­
holders and m erch an ts as it w ould if
it w ere issuing a separate card. In
o th er w ords, all cardholders and mer- 7"
ch ants rem ain custom ers of th e in ­
dividual b ank . . . not the association.

LANS to organize a reg istered Ja n u a ry , 1966, follow ing 17 y ears of
b a n k holding com pany, to be p rio r experience in the m arble busi­
know n as F irs t N ational C h arter Cor­ness.
M arble Craft, located at 4179 Meraporation, w ere jo in tly announced last
The cen tral com puter operation, th e H
m onth by T aylor S. A bernathy, ch a ir­ mec A venue, specializes in the finish­
com
m on ad v ertisin g program and
ing
and
in
stallin
g
of
fine
m
arbles
for
m an, F irs t N ational, and C. P h il
sec u rity /a u th o riz atio n are the resp o n ­
Bram w ell, chairm an, Leaw ood N a­ th e hom e and business.
sibility of th e W SBA C enter. T his is
tional, b oth of K ansas City.
B oards of both b an k s have approved M anufacturers H anover Form s a bank-ow ned, non-profit association.
Its costs are covered initially by direct >
an exchange of b a n k stock for hold­ O ne Bank H oldin g Com pany
assessm
ent of th e m em ber banks and,
ing com pany stock w hich w ill re su lt
M an u facturers H anover T ru st Com­ in tim e, by assessm ents levied ag ain st
in F irs t N ational stockholders receiv­
pany, N ew York, has announced its
activity.
ing tw o sh ares of th e new holding
in te n tio n to form a one-bank holding
com pany stock for each sh are of F irs t
The n e t effect of all th is is th a t th e ^
com pany to be know n as M anufactur­
N ational, and Leaw ood sh areh o ld ers
sm allest b an k in th e association h a s
ers H anover C orporation.
receiving 1,275 shares.
at its com m and some of th e m ost
T he move, w hich w as approved by
T he action w ill re q u ire ap proval by
sophisticated com puter technology cur­
th e b a n k ’s b oard of directors Decem­
stockholders of b o th banks, and re g u ­
re n tly available. E ach b ank can m ain­
b er 3 , is subject to th e approval of
lato ry agencies, and a favorable ru lin g
tain its own id en tity . . . its nam e is r
stockholders of th e b an k and th e su­
from th e In te rn a l R evenue Service.
pro m in en tly displayed on th e fro n t
p e rin te n d e n t of ban k s and th e receipt
A n application to becom e a reg istered
and back of its own M aster C harge
of ap p ro p riate tax rulings.
holding com pany is expected to be
card . . . w hile th e w eight of the group ^
M an u facturers H anover T ru st w ill as a w hole creates a su b stan tial im ­
filed w ith th e F ed eral R eserve B oard
re ta in its state ch arter.
on or about D ecem ber 15.
pact on th e re ta il m ark et and th e buy­
T he holding com pany w ould acquire
Leaw ood N ational has been an affili­
ing public. F ro m its inception M aster
ate of F irs t N ational since 1959, w h en th e stock of th e b an k by exchanging Charge . . . w ith over 2,000,000 card ­
it w as organized by a group of F ir s t’s its stock for th a t of th e b ank on a holders . . . w as im p o rtan t to m er- ^
chants. Over 70,000 joined before
stockholders. I t is in a shopping cen­ share-for-share basis.
In m aking th e announcem ent, R. E. card-issue day. A nd th e nu m b er of
te r in th e so u th p a rt of th e city.
U ltim ate p lans call for th e addition McNeill, Jr., chairm an, said, “T his as- banks behind it m ade it im p o rtan t to
-C
of o th er M issouri b an k s to th e hold­ tio n is being tak en to w iden our op- cardholders.
titons. The holding com pany w ould
ing com pany system .
R esearch has show n th a t th e b an k ­
In com m enting on th e announce­ enhance our capabilities of offering a ing public does have a loyalty to its
b
roader
range
of
financially
related
m ent, B a rre t S. H eddens, Jr., F irs t
services to our p re se n t and prospec­ ow n bank, be it large or small. B ank
N ational president, stated th a t th ro u g h
custom ers are pleased w hen th e ir own
an association of in d ep en d en t b an k s tive custom ers.”
b
ank p articip ates in a m ajor charge /
He w en t on to say, “B eyond th e
u n d e r th e holding com pany organiza­
card plan. A nd th ey are prepared to
acquisition
of
th
e
bank,
no
o
th
er
ac­
tion, th e group of b an k s w ill be able
su p p o rt th e ir b ank w ith a loyalty th ey
to broaden th e b an k in g services th e y tiv ity by th e holding com pany is p res­ probably w ould not display to a card
en
tly
in
tended.”
provide in th e ir ow n com m unities and
^
Mr. M cNeill said th e p resen t in ten ­ issued by a “foreign” bank.
im prove th e ir p erform ance th ro u g h
In sum m ation, th e W SBA Concept
g reate r efficiencies in o p eratin g proce­ tion w as th a t th e holding com pany
dures, equ ip m en t and personnel. A n­ w ould apply for listin g of its shares is a practical and efficient m eans for
a group of banks to issue a common
o th er im p o rta n t c o n s i d e r a t i o n , he on th e New Y ork Stock Exchange.
charge card. Because the m em ber
said, w as th e recognized need for
ban k s can secure both deep and w ide ^
ban k s to keep pace w ith area econom ­ B ankers P redict Growth
coverage of m erch an ts th ro u g h o u t the
ic grow th.
C ontinued economic grow th d uring total m ark et, th e card is im m ediately
Officers of F irs t N ational C h arter
1969 w as predicted by n early all b a n k ­
1
C orporation, all of w hom are officers ers polled d u rin g th e 22nd A nnual valuable to cardholders.
And
sim
ilarly,
because
th
e
banks
of F irs t N ational B ank, are: Mr. A ber­ C onference of B ank C orrespondents
n athy , ch airm an of th e executive com­ held b y F irs t N ational B ank in St. can issue a large nu m b er of carefully
credit-checked charge cards, th e plan
m ittee; Mr. H eddens, ch airm an of th e
Louis.
is
im m ediately valuable to m erchants.
board; E d w ard L. B ittn er, vice ch air­
Econom ic grow th in v ary in g de­
m an; Gordon E. W ells, president; Don­ grees w as predicted in 95 p er cent of
In th e w e ste rn states today, w ell v
ald H. Kasle, vice president, an d A r­ th e a n s w e r s ab out th e economic over 120,000 m erch an ts have joined
th u r G. Gillum, secretary -treasu rer.
tren d , w hile only 5 per cent forecast M aster C harge . . . and over 3,250,000
cards have been issued. If one realizes
a recession in 1969.
The b an k ers expect in te re st rates to th a t th e original plan called for 30,000
New Sales Official
m erch an ts and 1 m illion cards, one has
M arble C raft, Incorporated, a sub­ level off. T his tre n d w as forecast in
sid iary of B ank B uilding and E q u ip ­ 69 p er cent of th e answ ers, w hile 16 a clear p ictu re of how th e w hole does
m en t C orporation of A m erica, St. p er cent expected an u p w ard m ove­ become g reater th a n th e p arts. The
Louis, h as announced th e prom otion m en t and 15 p er cent predicted th e W SBA Concept has p roven successful
in th e W est. A nd it is w o rk in g equally !
of F lo y d M. K raem er to th e position tre n d w ould be down.
Some 1,800 b an k ers from 14 states w ell in o th er sections of th e country.
of vice president-sales.
—End.
Mr. K raem er joined M arble C raft in atten d ed th e sessions.

P

estern Banker, December, J968
DigitizedNorthw
for FRASER
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Federal Reserve Bank of St. Louis

35

Agri-banking
isafertile
field.
There's always a market for farm
participations.
And the Harris can help you with
yours. Our agri-bankers work closely
with you on farm credit. And make
your farm overloans go a lot
more smoothly.
Ask your Harris Man for our
comprehensive Agricultural Credit Kit.
Expect the best when your
correspondent is the Harris.

HARRIS 'S BANK

111 West Monroe Street, Chicago, Illinois 60690

Organized as N. W . Harris & Co. 1882, Incorporated 1907 • Member Federal Deposit Insurance Corporation • Federal Reserve System


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Federal Reserve Bank of St. Louis

N orthw estern Banker, December,

1968

C ou n try R anh Rtim nina . . .
(C ontinued from page 31)
sm aller p lan ts in sm aller com m uni­
ties.
Five y ears ago, in our com m unity,
w e sold $1 m illion in stock to cap ital­
ize a com pany to build a p la n t th a t
new em ploys 600 people. The p eriod­
icals are full of re p o rts of sim ilar suc­
cesses. The h a n k e r has, w ill and
m u st tak e th e lead; th e re are no p at
answ ers. Risk, reo rien tatio n , diligent
effort and increasin g skill lead to com ­
m u n ity grow th. I t seem s to m e th a t
if 50 p er cent w ill su rv iv e in agricu l­
tu re, m any com m unities w ill sink
in to oblivion unless job o p p o rtu n ities
becom e available in th e ru ra l area.
T he m ost sophisticated stu d y and
plan n in g w ith re su lta n t prem ed itated
action is w o rth y of th e com m unity
b a n k ’s tim e and funds. T his is no di­
lemma; it ap pears as an obvious
course of action.
Exchange
“E ” today m eans exchange, the
m oney to loan, to capitalize, to earn,
to acquire th a t creates th e o p p o rtu ­
n ity for people. T otal a g ric u ltu ra l
loans today approxim ate $53 billion.
Good a u th o rity estim ates th a t by 1980
it w ill to tal $125 billion. W here w ill
it come from ?
I t is our resp o n sib ility as com m u­
n ity b an k ers to fulfill th e legitim ate
cred it needs of our com m unity. Our
skills m u st develop to m ain tain th e
“in v e n to ry ” of pro d u ct or service th a t
w e can m erchandise profitably. H igh­
er loan to deposit ratio s w ill con­
tinue; th e aggressive, m ost profitable
com m unity b an k s are o p eratin g w ith
such ratio s tw ice as high as those of
com placent, less profitable operations.
I firm ly believe we m u st confront
75 p er cen t loan to deposit ratio s
and le a rn to p reserv e th e n ecessary
liq u id ity in devices o th er th a n u n ­
invested funds or large g o vernm ent
portfolios.
Our ru ra l areas are h isto rically cap­
ita l d isb u rsin g areas. Our custom ers
spend m oney for govern m en t bonds,
ann u ities, m u tu al funds, savings and
loan shares, com m on stocks and life
in su ra n c e prem iu m s th a t w e nev er see
again. W e m u st m erchandise our
tim e deposit services significantly on
a com p etito r’s basis. The in g en u ity
to do th is in those b an k s n o t now p a r­
ticip atin g w ill come as th e ru ra l eco­
nom ics s ta rt to so rt th e spectato rs
from th e players. W e recen tly m er­
chandised $2.5 m illion of capital notes
am ong our cu stom ers at ra te s of 5.5
to 6 p er cent depending upon m a tu ­
rity .
N orthw
estern Banker, Decem ber, 1968

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

H istorically in ag ricu ltu re w e have
divided up th e w ealth every gen era­
tion and sta rte d over. As population
em ig rating areas, we send accum u­
lated w ealth to th e m etropolitan
areas. In m y own fa th e r’s estate, 25
p e r cent w ent to M ichigan, 25 per
cen t to C alifornia and only 50 per cent
stay ed in Iowa. S urvival dictates th a t
w e c a n ’t continue to do this. In our
shop, every loan officer has had tra in ­
ing in estate planning. He can recog­
nize o p p o rtunities to keep w ealth in
our com m unity th ro u g h estate p lan ­
ning and to avoid unn ecessary estate
and in h eritan ce taxes. It is th e h o ttest
sales tool w e have going.
As m entioned earlier, th e devices of
th e correspondent bank, F ed eral agen­
cies, A g ricu ltu ral C redit C orporations
and in su ran ce com pany alliances have
been m axim ized by only a fraction of
th e banks. Our cu sto m er’s needs and
desires will, in m y opinion, dictate th e
p ro liferatio n of holding com panies
and b ran ch b a n k i n g . Cooperation
w ith in th e in d u stry can do m ore to
blockade th e inroads of our m ost able
com petitors th a n any space age device
th a t m ight be dream ed up.

Turnover of Funds
W e can get m ore m ileage out of
o u r m oney w ith m ore carefully pro­
gram m ed loans. The tu rn o v e r of
funds can add to our liquidity. In
addition, it reduces th e b o rro w er’s in ­
te re st cost, if he is seasonally in and
out of our debt. B orrow ers w ho hon­
or m a tu rities are b e tte r m anagers.
The old “renew able c h attel” or “b a rn ­
y ard c h a tte l” or “bread and b u tte r
lo an ” is now a m arginal loan in m y
opinion. P rogram s of d isbursem ent
and r e p a y m e n t are comm onplace.
T u rn o v er of m oney in m y ban k is sig­
nificant ju st as in v en to ry is to m y
agrib u siness custom ers.
F inally, we can ’t be all th in g s to all
people. Our lives w ill be m ore excit­
ing, easier and m ore profitable, if we
co n cen trate our efforts w ith th a t capa­
ble m anagem ent in th e co u n try th a t
can produce profits. W e can ’t keep
everybody dow n on th e farm , so w e
m u st offer th a t kind of service th a t
appeals to success—th e custom ers of
1978.
In m y estim ate, 50 per cent of us
w ill accom plish th e digestion of the
dilem m a d u rin g th e n ex t decade. My
re m a rk s w ere not in ten d ed to be all
inclusive, b u t by looking at th e parts,
I hope we have seen th e w hole.—End.

To Travel Midwest
For Security Pacific
F ra n k lin D. Stowell, account officer
of Security Pacific N ational B ank’s n a­
tional ban k in g d ep artm en t in Los A n­
geles, has been assigned to w ork in
th e n o rth central
region. He suc­
ceeds R ichard D.
F re y , a s s is ta n t
v ic e p r e s i d e n t ,
w ho has tra n s ­
f e r r e d to t h e
b a n k ’s n o rth e rn
C alifornia h e a d ­
q u a rte rs , S a n
Francisco.
The n o rth cen­
t r a l r e g i o n in ­
cludes th e states of Colorado, Iowa,
K ansas, M innesota, M ontana, N ebras­
ka, N orth D akota, South Dakota,
n o rth e rn W isconsin and W yom ing.
Mr. Stowell joined Security Pacific
in 1964 and served as a ssistan t m an ­
ager p rio r to his ap p ointm ent as ac­
count officer, n ational banking d ep art­
m ent, in N ovem ber, 1967.

CGNGENERICS . . .
(C ontinued from page 32)
A ban k looking a t diversification, or
looking at b ran ch acquisition for th a t
m atter, has to exam ine th ese ex pan­
sion plans in th e sam e w ay as it
w ould exam ine any investm ent. Can
it m ake th e operation m ore profitable
th a n th e p resen t operators do? Or, if
th e v e n tu re is new, can it m ake th e
new v e n tu re as profitable as in v est­
m en t of th e sam e am ount of capital in
th e b an k itself w ould be?
Available Talent
To answ er this affirm atively, th e
b an k m u st have the ta le n t available
to operate in th e new areas and tale n t
m ay ju st not be available to th e bank
for such expansion.
Thus, it m ay w ell be th a t m any
banks look at expansion and w onder
w h y th ey w a n t to get into o ther serv ­
ice areas since th ey cannot do th e job
b e tte r th a n th e com panies now in
these fields can do. D iversification
for its own sake is no blessing unless
it is accom panied by new m arkets
and enhanced profitability.
B u t to those b an k s th a t feel th ey
can tru ly benefit by th e congeneric
route, it w ould appear th a t now is the
tim e to act. F o r even though the
w hole congeneric ro u te m ay be halted
by th e reg u lato ry au th o rities and the
legislature, th e re is good chance th a t
th ey w ill n ot com pletely reverse the
tren d .—End.

37

T h e o t h e r H o t L in e .

A t o n e e n d i s ”T h e R o o m ” at 2 0 P in e
S treet. W h ere C h em ica l N ew Y ork ’s p r o ­
f e s s io n a ls k e e p o n to p o f t h e m o n e y
m a r k e t.T lie u p -to-th e-m in u te rates
o n m u n ic ip a l an d g o v e r n m e n t
b o n d s. T r ea su r y B ills. C om ­
m e r c ia l P a p er. C.D.’s. F edera l F u n d s.
>A t th e o th e r en d are
corresp o n d en t hanks
th r o u g h o u t th e co u n tr y .
To fin d t h e b e s t in v e s t ­
m e n t o p p o r tu n itie s, th e y
n e e d j u s t o n e p h o n e c a ll.
2 1 2 - 7 7 0 - 2 5 6 7 . C h em ica l g iv e s
th e m th e facts. H a n d le s a ll th e d e
t a ils , in c lu d in g s a f e k e e p in g a n d th a t
MEMBER F.D.I.C.


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

im p o r ta n t r e m in d e r o f m a tu rity .
C h e m ic a l N e w Y o r k ’s m o n e y H o t
L in e. T h e lin e is d ir e c t.T h e se r v ic e su re
an d im m e d ia te .
W h en y o u w an t th e r e ­
so u r c e s and se r v ic e s o f a n
$ 8 b i l l io n g lo b a l b a n k ,
t a l k to t h e m a n f r o m
C h e m ic a l N ew Y o rk .
M ore th a n 1 ,5 0 0 o f th e
n a t io n ’s le a d in g lo c a l
b a n k s do. W h e n th e ir
n e e d s are fin a n cia l, th e ir
r e a c tio n is C h em ical.

Chemical
New York
CHEMICAL BANK NEW YORK TRUST COMPANY

N orthw estern Banker, December, 1968

38

Cover Story

"W h a t hanks th in k at
th eir f i e r e

A d r a a re
P la n n in g
is H e y to

A

N orthw estern Banker, December, 1968


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

u

V

X

L

su ccessfu l eo n stra etio a

A NORTHW ESTERN BANKER S urrey

DEQUATE advance p lan n in g is
absolutely essen tial to a suc­
cessful b an k b uild in g or rem od­
eling job.
T his is th e advice received th ro u g h
an exclusive N o r t h w e s t e r n B a n k e r
su rv ey am ong a cross-section of b a n k ­
e rs w ho have com pleted extensive
b u ilding or rem odeling p ro jects w ith ­
in th e p ast year.

n ing a building program ; some fea­
tu re s th ey like b est about th e ir build­
ing and w hich th e y feel o ther b an k ers
m ight w ish to incorporate in building
projects; one or m ore item s th ey
m ig h t include if th ey w ere doing th e
pro ject over again.
By far th e m ost freq u en t general
suggestions concerned th e beginning
stages of a bu ild in g project. M any of
th e replies stressed th e need to allow
p len ty of plan n in g tim e so ideas can
be gath ered and evaluated, various
arch itects and o th er ban k ers can be
consulted, and suitable prelim in ary
plans can be w orked out.
George T. M uirhead, presid en t of
The Stockgrow ers S tate B ank at W orland, Wyo., explained how his b ank
began its planning: “W hen our board
of directors first authorized b an k m an ­
agem ent to proceed w ith new build­
ing plans, I th ereu p o n traveled to
th re e sep arate m etropolitan areas and
to u red small- to m edium -sized banks,
g ath erin g new ideas and innovations,
after w hich w e spent approxim ately
six m onths w o rk in g on th e basic floor
p lan arran g em en ts before tu rn in g it
over to th e arch itect.”
H aste, m any of th e ban k ers indi­
cated, leads to erro rs, oversights, and
m isjudgm ent of needs and costs.
Tim e and continuous reconsideration
of plans are necessary to obtain th e
b est possible plan. “Our p lan n in g
sketches w ere red raw n m any tim es,
and each tim e w e th o u g h t we had ev­
ery th in g arran g ed th e m ost efficient
w ay possible. B y allow ing a ‘coolingoff’ period, w e th o u g h t of new ideas
th a t w ere b e tte r th a n th e original
plans,” said H arold Q ualsett, p resi­
d en t of th e F irs t N ational B ank a t
Schuyler, Neb.
J.
A. Irving, p re sid e n t of F irs t
W est Side B ank in Omaha, revealed:
“W e took m ore tim e in th e planning
stages th a n w e did in th e process of
construction, and th is v ery definitely
paid off in an orderly process of build­
ing, plus catching a g reat n um ber of
erro rs p rio r to construction.”
Several of th e b an k ers rep ly in g to
th e su rv ey counseled im m ediate ac­
tio n for anyone th in k in g of building.
R. H. Stillinger, presid en t of Cass
C ounty B ank, P lattsm o u th , Neb., said:
“I w ould u rg e anyone seriously con­
sid ering em barking on a building or
rem odeling p ro g ram w ith in th e near
fu tu re to u n d e rta k e th e p roject as
quickly as possible to avoid th e sky­
ro ck etin g prices of labor and m ate­
rial.” T he sam e advice cam e from
P h il M orris, p resid en t of th e F irst
N ational B ank of M arion, Iowa.
The replies also stressed th e value
of v isitin g o th er b a n k e rs w ho had
b u ilt new buildings and of choosing

A sked to give th e ir suggestions and
advice to o th er b an k ers w ho are con­
tem p latin g or p lan n in g to build or re ­
m odel in th e n e a r fu tu re, th e group
surv ey ed placed special em phasis on
th e b eg inning stages of a building
project.
R espondents w ere asked to give
in fo rm ation in th ree areas: some gen­
eral suggestions to o ther b an k ers plan ­

y

f

39

CREATIVE

T

A

U

î m

For First Of Tulsa Correspondents . . .

First Specialist Dick Wagner
Senior Vice President In Charge Of Division H
(Correspondent Banks). Your Contact
For Full Service Thinking.
Dick Wagner is a resourceful pro­

specialists . . . experts in every phase of

fessional banker. He’s the head of a

banking procedure. These

First team of banking specialists who

devoted to the development of original

travel thousands of miles each month.

programs, unique services and efficient

He

problem-solving methods to benefit

gathers

facts,

exchanges

ideas,

takes a first-hand look at correspond­

men are

correspondents and their customers.

ent problems . . . correspondent needs.

When you want full service thinking,

The insight he gains supplies direc­

contact Dick Wagner — a creative head

tion to our large staff of creative

full of "capital ideas’.' Call 918 587-2141.

y o u d e s e r v e U l O V C .. .

fin k

ir s i !

THE FIRST NATIONAL BANK
& TRUST COMPANY of TULSA
MEMBER


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

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

Northw estern Banker, Decem ber, 19$8

40

N ew M o to r H ank fo r F o r t

ARCHITECT’S DESIGN of spectacular new m otor b an k to be constructed by F ir s t N a ­
tional B ank of F o rt Dodge, Iow a, is shown above. I t w ill be located a t Crossroads
Shopping C enter as rep o rted in a sto ry about th e new stru c tu re in la st m onth’s issue.
Earl Underbrink, presid en t of the bank, said construction is proceeding now on the
building. M aiw urm -W iegm an is th e a rc h ite c tu ra l firm.

th e arch itect carefully. E. C. T hom p­
son, p resid en t of th e S ecurity N ation­
al B ank in Sioux City, Iow a, said:
“W e received considerable help from
a city co rresp o n d en t hav in g an arch i­
te c tu ra l staff of its own. Before any
plans w ere draw n, w e h ad our arc h i­
tect m ake a trip to v isit th e arch itects
of th e city corresp o n d en t.”
E ven if such a service is n o t avail-

able, v isits to o th er b an k ers and arch i­
tects can be invaluable help to for­
m u latin g plans, as H ow ard B. Lee,
cashier a t th e F irs t N ational B ank of
Volga, S. D., em phasized: “V isit w ith
b an k ers w ho have u n d ertak en re ­
m odeling or rebuilding or new build­
ing projects. V isit w ith various arch i­
tects to find out th e ir services, fees
and p relim in ary ideas. I th in k you

w ill find each one ready to show w h at
he can do, even though he m ay n ot
w an t to p u t his nam e on a prelim i­
n a ry floor plan or building design.”
H arold G. Nicolas, presid en t of W il­
ton Savings B ank, W ilton Junction,
Iowa, said: “T here is no desirable
su b stitu te for com petent and experi­
enced guidance from a building or
facility p lan n er and a cooperative
architect. I th in k it is w o rth th e tim e
and effort of any group th in k in g of a
new building to view th e accom plish­
m ents of those th ey are considering
to serve th em .”
Gordon L. M ennen, p resid en t of Le
M ars, Iowa, Savings B ank, agreed: “I
th in k it is of prim e im portance in a
building p rogram to use a reliable
co n su ltan t w ho is fam iliar w ith b ank
operations.”
A nother im p o rta n t piece of plan ­
ning advice w as offered by Lyle B.
Rowe, p resid en t of The F irs t State
B ank of Shelby Mont.: “Add 10 to 20
p er cent over th e original estim ate to
cover th e cost of changes and unforeseen expenses.”
Several b an k ers also m entioned th e
w isdom of obtaining recom m enda­
tions from all d e p artm en t heads, and
even all em ployees, so no im p o rtan t
needs are overlooked. T his w ill re ­
su lt in a pro p er use of space. W. N.
Shellenbarger, ch airm an of th e F a rm ­
ers State B ank, M arion, Iowa, advised:
“Decide how m uch space each d ep art­
m en t w ill need. A stu d y of traffic
flow is needed, w ith th e dep artm en ts
having th e m ost traffic being the m ost
accessible to th e public.”
P lanning, observed a n u m ber of re ­
plies, m eans p lan n in g ahead—even 20
or 30 y ears ahead—so th a t fu tu re, as
w ell as p resent, needs can be tak en
care of. Such p lan n in g req u ires a
stu d y of th e b a n k ’s p ast perform ance
and its fu tu re potential, in th e light
of projected g ro w th for th e b an k ’s
com m unity and trad e area.

W e are proud of designing and building the recently com­
pleted Jasper County Savings Bank in Newton, Iowa.
W e will be glad to call on you at your convenience to discuss
your building plans with no obligation.

F M DESIGN AND CONSTRUCTION CO.
u n r / 6 n g in e e tA
¡41 WEST J A C K S O N BOULEVARD

• C H IC A G O , ILLIN O IS 60604

Northw estern Banker, December, 1968


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

*

HArrison 7-4866

U rging b an k ers to m ake provision
for expansion in new buildings, K. W.
Obrecht, p resid en t of Louis Joliet
Bank, Joliet, 111., said: “D on’t be
afraid to spend ex tra m oney now for
foundations and land, because th e cost
in th e fu tu re w ill alw ays be m uch
m ore th a n if pro p er p lan n in g is used
now .” E a rl L. Pow ers, vice president
and cashier of th e Defiance, Iowa,
S tate B ank, and R. H. C urrier, p resi­
d en t of R epublic N ational Bank, E n ­
glewood, Colo., concurred w ith Mr.
O brecht’s judgm ent.
A n u m b er of suggestions concern­
ing specific featu res th a t should be
included in th e p lan n in g w ere bro u g h t
up in th e su rv ey replies. F irs t am ong

^

>~

y-

-*

^

^

/

^

41

IF YOU ARE BUILDING OR REMODELING. DO N'T FORGET . . .

DIEBOLD
MAKES THE MOST COMPREHENSIVE
LINE OF SECURITY EQUIPMENT
IN THE INDUSTRY.
M ost o f it is w orthless to you
w ith o u t som ething we give away.
Despite the fact that we offer the widest range of alarm and security
equipment in the field, we’d be most reluctant to sell you a single
item of security equipment without giving you something first.
We would want to give you an analysis of your bank's security needs.
That’s because an effective security program involves far more
than equipment alone — it involves your people, your procedures,
your property. Effective security depends on what happens in
your bank on a day-to-day basis — and what could happen.
Security equipment can do the right kind of job for you only when
it's tied into a security plan. As confident as we are of the quality
of our equipment, we know it cannot be truly functional
without such a plan.
That’s what we’d like to give you — even though it may indicate
you don’t need a single thing we make.

DIEBOLD

I N C O R P O R A T E D
CANTON, OHI O 44702

DIEBOLD, INCORPORATED • Canton, Ohio 44702
Gentlemen:
Please send detailed information on a no-obligation
security survey.

]

Name

j

Firm

____________________________________________________
______________________________________________________

A d d re s s ___________________________________________________
C i t y ___________________


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

S t a t e _____________

j

Z i p ________

Northw estern Banker, December, 1968

42

I Í c iii'í t

Ê h iU d in tj

We Say ...
■

good news tra ve le d fa s t
among Bankers who p la nn e d
new b u ild in g or m odernization
program s

—

when___
ARTIST’S RENDERING shows how The
Colorado State Bank Building, to be con­
stru c te d on th e n o rth e a st corner of 16th
and B roadw ay, w ill look on completion.
C onstruction on th e 26-story, $18-million
p restig e office b uilding w ill begin w ith in
60 to 90 days. The Colorado S tate B ank
w ill be th e m ajor occupant of the building, w hich w ill also offer 23 floors of
prim e lease office space. (Complete story
appears on page 68.)

of

th e

7 banks

in

Io w a 's

H a n c o c k C o u n ty selected
KIRK GROSS Bank S pecialists
to supervise b u ild in g program s!
■ Y es, w e a re v e ry p ro u d of th is re c o rd . . . 5 o f th e
7 b an k s in H ancock C o unty w ere d esig n ed an d co n ­
stru c te d u n d e r th e su p e rv isio n o f K IR K G RO SS B an k
S p e c ia lists. B u t m o st im p o rta n t th e s e m o d e rn iz a tio n
p ro g ra m s w e re a w a rd e d to u s th ro u g h th e reco m ­
m en d a tio n s o f h a p p y an d sa tisfie d B a n k e rs, w ho sp re a d
th e “Good N e w s” .
fo r fa s t
a c tio n ph o n e:

319/234-6641

So w hen you a re c o n sid e rin g m o d e rn iz a tio n , w h y n o t
g e t th e com plete sto ry . F in d o u t f o r y o u rs e lf how
we sav ed th e se B a n k e rs v a lu a b le tim e an d m oney.
T elephone o r w rite fo r co lo rfu l b ro ch u re.

110 EAST SEVENTH STREET — W ATERLOO, IO W A 50705
M orthw estern Banker, December, 1968


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

these is th e m a tte r of th e proper location for a new b an k building. C. A.
Thorkelson, p resid en t of F irs t N o rth ­
w estern N a t i o n a l Bank, Redwood
Falls, Minn., said: “W ith in reason,
you ought to pay w h a t it takes to get
th e number one location for your
building, and it should include enough
room for p ark in g and drive-up b an k ­
ing.” Mr. T horkelson and others
pointed out th e necessity of studying
traffic p a tte rn s and consulting local
traffic planners, especially w hen driveu p facilities are being planned.
A fter an arch itect h as been hired, it
is im p o rtan t to keep close contact
w ith him , if th e p lan n in g stages are
to ru n sm oothly. Miss B onnie Brown,
m ark etin g d irector of th e W eld Coun­
ty B ank in Greeley, Colo., suggested:
“M ake v ery certain th a t th e architect
you select is one w ho w ill keep your
m anagem ent inform ed—lack of know l­
edge about c u rre n t statu s creates an ­
xiety! A ppoint a stro n g liaison officer
to w ork w ith th e a rch itect.”
Mr. S hellenbarger bro u g h t up sev­
eral o th er im p o rtan t plan n in g tips:
“Decide how m uch room th e bookkeeping d ep artm en t needs. If your
b an k is big enough to afford a com­
p u te r som eday, th en th e bookkeeping
area m u st be designed accordingly. If
you in ten d to buy tim e on a com­
p u ter, th en the space needed in your
ow n bookkeeping d ep artm en t w ill be
less.” He also m entioned the neces­
sity to study building styles, neces-

SC

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*■

v

A,

4^

x

43

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an d p re p rin te d forms, such
as rep o rt forms, can be su p er­
im p o s e d o n th e film w ith
precise registration.
T h e need for o p erato r d e­
cisions is m inim ized. S etu p
is sim plified by th e use of a
J o b S e t u p C o n tr o l C a r d
w hich form ats th e p rin to u t
au to m atically . T h is reduces
setu p tim e and costs required
for new jobs.
E ven m ore im p o rtan t, in
th e long run, is th e fact th a t

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R ochester, N ew York 14650.

KODAK K O M -90 M icrofilm er.

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

Northw estern Banker,

December, 1969

44

Plan A e ir

th e
Bluitili ni/in K a n Wour
keabuilding
k ee issome
sacrificed

SECOND STEP—F irs t T ru st and Savings B ank, K an k ak ee, 111., has em barked on
P hase I I of a m ultim illion dollar expansion program , according to W. J. Charlton,
president. In A ugust, th e b an k opened a new m otor b an k two blocks from the m ain
office. Now the b an k has announced plans to co n stru ct a new m ain b an k b u ild in g in
dow ntow n K ankakee. The build in g involves developm ent of an a re a to be know n as
D earborn Square, w ith a public plaza and an all-w eather p a rk in g garage. M r. C harlton
states th a t the first three levels of th e build in g w ill be u tilized by th e b an k w ith
ad d itio n al floors availab le fo r ren t. The design is contem porary w ith v a st expanses
of b lack -tin ted glass. C onstruction is scheduled to begin in mid-1969.

sary fu rn ish in g s, safe deposit box
needs, secu rity reg u latio n s and, espe­
cially, th e b a n k ’s v a u lt needs. “A lot
of stu d y should be given to th e type,
size and location of th e vault. Once

PHOTO-SCOPE
Is a c o m p le tely a u to m a tic o s c illa tin g p h o to ­
g r a p h ic u n it d esig n ed fo r th e p rev e n tio n
o f h o ld u p s, fo r g e r ie s , an d to aid in id e n tifi­
ca tio n .
1. I t h a s fla sh in g red and w h ite lig h ts to
d raw a tte n tio n to th e u n it. P r o v en th e
g r e a te st d eterr en t fe a tu r e on th e m ark et.
2. T h e u n it o s c illa te s o n a 70 d egree a n g le ,
th ereb y co v e r in g a la r g e r a re a th a n a
s t ill cam era.
3. T h e u n it h a s an a u to m a tic lig h t m eter.
A p ro v en n e c e ssity .
4. T h e co s t o f co n tin u o u s u se o f film is
le ss th a n 7 c e n ts p er h our. (D oes n o t
in clu d e 16-35m m film .)
T h is lo w co st
o f film w ill en a b le y o u to u se film dur­
in g op en h ou rs. I f a h oldup sh ou ld
occur, you w ou ld h a v e a p ic tu r e o f th e
robber, ra th er th a n th a t o f in co m in g
p o licem en a fte r th e robbers h a v e gon e.
5. P H O T O -S C O P E h a s a seq u en ce cam era.
T im in g is p re-set, an d offers fr o m th ree
fr a m e s p er seco n d up to o n e fr a m e per
m in u te.
U n it s u s in g S u p er-8, 16m m
o r 35m m
ca m er a s a re a v a ila b le. A ll ca r ry an u n ­
co n d itio n a l th ree y e a r gu a ra n tee.
T h ese u n its m a y be le a se d fo r as lo w as
$22.50 p er m o n th , in c lu d in g serv ice, or m a y
be p u rch ased a t p r ic e s r a n g in g fro m $600'. 00
u p to $995.00 fo r th e 35m m . V olu m e sa les
m a k e th ese r e a lis tic p rices p ossib le.
A ll u n its a re g u a ra n teed to m e e t th e r e ­
q u irem en ts o f th e B a n k P r o te c tio n A c t
o f 1968.
O ur g u a r a n te e :
F iv e u n its fr e e i f you
ca n m a tch ou r u n its fo r q u a lity , p e r fo r ­
m a n ce, p r ic e or w a rra n ty .
W r ite fo r a fr e e d em o n str a tio n o f th e v er y
la t e s t in m od ern s u r v e illa n c e eq u ip m en t.
O ur n e a r e st D istr ib u to r o r F a c to ry R ep re­
s e n ta tiv e w ill c a ll on you.

SECURITY ELECTRONICS,
INC. MFGS.
Box 14224
Om aha, N ebraska 68114

Northw estern Banker, December, 1968


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Federal Reserve Bank of St. Louis

constructed, it c a n ’t be m oved and it
is difficult to enlarge.”
T h ere w ere also a v arie ty of an ­
sw ers to th e second question: “Some
featu res th a t you like b est about your
b u ild in g and w hich you believe o th er
b an k ers m ig h t w ish to include in th e ir
p lan s.”
Design vs. Function
M any of th e responding b ankers
felt th a t th e design or various aspects
of th e design are im p o rta n t assets to
th e ir new banks. Mr. T horkelson ex­
plained: “The th in g I like b est about

un u su al beauty.
u tility and con­
venience for its good looks, b u t I be­
lieve th is w as a w ise choice, as I be­
lieve th e b eau ty of th e building w ill
continue to sell for us over a num ber
of y ears.”
Several b ankers, how ever, advised
ag ain st p erm ittin g aesthetic concerns
to obstru ct practical, functional con­
cerns.
M any of th e answ ers, how ever, in ­
cluded com m ents on th e im portance
of th e b u ilding’s design, such as those
of Mr. Rowe: “A focal point in the
bank, e ith er in decor or design in the
interior, is good for w aitin g custom ­
ers to discuss and to d raw p o tential
custom ers into th e b ank.”
Several b an k ers noted th a t a ttra c ­
tive design features, especially in lob­
bies and custom er w aitin g areas, are
am ong th e b est featu res of th e ir new
buildings. Joe H einem an, presid en t
of P aw nee C ounty B ank a t Paw nee
City, Neb., observed: “One th in g I
w ould recom m end to any bank, large
or sm all, is a sm all table and chairs in
th e lobby for youngsters. W e have
one supplied w ith books and color
books, and th is is one of our biggest
assets. W e also have a sm all tele­
vision in th e lobby, w hich I also rec­
om m end for both large and sm all
b an k s.”
F re q u e n tly m entioned as a v ery
pleasing featu re of a new building
w as carpeting. Mr. Q ualsett rem arked:
“W e especially like h aving carpeted
th e en tire bank, including the lobby,
v au lt and even th e storeroom . Cus­
tom er com m ents on th e carpeting

4

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Becker and Associates has been selected for the
design, millwork and counter work for a substantial
number of banks in recent years, and now has nu­
merous banks under construction.
We express our sincere appreciation to all of these
banks for their patronage.

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409 East Highway

a n d

c ^ d ± ± o a ia tE ±

Alta, Iowa 51002

Telephone 712— 284-3211

45

T h e re 's a c u sto m e r o u t th e re
y o u m a y be a b le to help.

W e re a d w ith in te re s t a re c e n t B an k M a rk e tin g
R e p o rt t h a t s tre s s e d th e im p o rta n c e a n d b en efits
to be g ain ed b y b a n k officers en g a g in g in a p la n n e d
p ro g ra m fo r m a k in g o u tsid e calls. I t w as o b serv ed
t h a t few b a n k officers like to sell o u tsid e th e b an k ,
b ec au se th e y feel th e y d o n ’t k now how to sell a n d
th e y d o n ’t q u ite k n o w h o w to b e g in o r w h a t
serv ices to offer.
I t f u r th e r s u g g e s te d t h a t a n e x c e lle n t w ay to
b eg in w as to c o n c e n tra te on serv ic in g calls to p re s e n t
cu sto m ers, la rg e a n d sm all, a n d to confine th e sales
effo rt to a d d itio n a l n ee d s th e se people m ig h t have.
H e re ’s w h e re w e believ e we can h elp w ith a su g ­
g e stio n t h a t an excellent, h elp fu l, o n -th e -sp o t w ay

fo r th e officer to b e of service is to sim p ly rev iew
th e c u sto m e r’s check re q u ire m e n ts w ith h im . I t ’s
ea sy to a sk w h a t ty p e of check h e is u sin g , o r ev en
b e p re p a re d b y k n o w in g a h e a d of tim e, a n d th e n
m a k e re c o m m e n d a tio n s fo r c h e ck s t h a t p e r h a p s
w ould b e m o re su ita b le fo r h is p a r tic u la r need s.
C a rry in g o u r new q u ick re fere n ce c a ta lo g o f o v er
50 d iffe ren t b a n k check fo rm s on th e se calls a n d
sh o w in g co n cern for th e c u s to m e r’s check n ee d s is
a w o n d e rfu lly ea sy w ay to "b re a k th e ice.” C o n v er­
sa tio n can th e n lead n a tu ra lly on to th e u tiliz a tio n
o f o t h e r b a n k in g s e r v ic e s . W e ’ll b e p le a s e d to
h e lp w ith sales aids, c a ta lo g s a n d su g g e stio n s fo r
co u n se lin g c u sto m e rs on th e ir check needs.

D E L U X E C H E C K P R I N T E R S INC.
STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST

N orthw estern Banker, Decem ber , 1968

Ê

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

46

On the Cover

H ank
H ea d

o f C alifornia O pens
O ffice in San

To achieve m axim um floor space in
H E B ank of C alifornia opens its
new h e a d q u a rte rs b uilding in San th e new 314-foot high tow er, can ti­
lever construction w as used to take
F rancisco th is m onth. The u nique de­
sign re ta in s th e b a n k ’s 60-year-old advantage of valuable air space over
classic b an k in g stru c tu re and incor­ th e existing building.
T hree floors w ere co nstructed be­
porates it w ith a strik in g new 21 -story
low ground, w ith special techniques
tow er building.
C onstruction of the b uilding itself used to offset th e high tide w ater
w as an achievem ent, th e b an k noted, level of the bay. At the bottom of
th e th ird level is an eight-foot thick
due to th e com m itm ent to continue
“business as u su a l” in th e m ain office. concrete foundation mat.
A nu m b er of d ep artm en ts of B ank of
The in terio r of th e building w as
C alifornia have operated in th e four- developed on a four-foot six-inch b u ild ­
y ear in te rim in leased q u a r t e r s
ing m odule. All lighting, air condi­
th ro u g h o u t th e c en tral San F rancisco
tioning and o th er u tilities are con­
business section. W hen th e board of stru c te d to fit this m odular concept.
directors decided in 1962 th a t a new
Special a tten tio n w as given to provid­
build in g w as needed th e y voted to ing th e m ost desirable acoustical lev­
m ake th e new stru c tu re com plem ent el th ro u g h o u t th e building.
th e existing Graeco-Rom an b an k bu ild ­
A to tal secu rity system is listed by
ing th a t w as th e city ’s first m ajor B ank of C alifornia as the m ost com­
buildin g com pleted a fte r th e 1906 prehen sive and effective of any com­
earth q u ak e and fire, now considered m ercial b an k in th e nation. A t the
one of San F ran cisco ’s prim e exam ­ h e a rt of th e system is a m aster elec­
ples of classic arch itectu re.
tro n ic console u n it th a t controls or

T

H ank

HuildinifS u rrei/ . . .
(C ontinued from page 44)

have been m any, and alw ays fav o r­
able.”
Open in te rio rs and the use of glass
w alls for offices and various d e p a rt­
m ents are also prized by m any of th e
bankers. Mr. Irv in g noted th a t his
bank, in co n stru ctin g its new b u ild ­
ing, follow ed its policy of placing “th e
m anag in g officer an d all th e active
com m ercial officers in a position
w h ere th e y have a good view of th e
fro n t door and th e e n tire teller line,
m akin g th em com pletely available to
each and every custom er w ho w alks
th ro u g h th e fro n t door.”
Mr. Rowe felt th a t “a glassed-in op­
eratio n s area in b anks w hose size p e r­
m its it lets th e public view th e actu al
w orkings of th e bank, creatin g in te r­
est in th e b a n k ’s o perations.” I t also
affords th e officers co n stan t inspection
of th e area. Mr. Q u a l s e t t said:
“Glassed areas in th e offices and book­
keepin g d ep artm en t give all th e em ­
ployees a feeling of bein g a p a rt of
th e en tire b an k .” A lbert F ru ech te, as­
sista n t cashier a t th e New Albin,
Iowa, Savings B ank, also felt th is is
an im p o rta n t fe a tu re in his b an k
building.
Mr. M uirhead explained th at, al­
thoug h his b a n k ’s new building is
carpeted, “W e also have a three-foot
Northw estern Banker, December, 1968


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Federal Reserve Bank of St. Louis

w ide strip of q u a rry tile in fro n t of
all teller w indow s, w hich elim inates
carp et w ear a t th e te lle rs’ cages. A
dropped coin can also be h eard on
th e q u a rry tile, w hereas a coin
dropped on c a r p e t i n g cannot be
h eard .”
H. L. O llenburg, presid en t of the
H ancock C ounty N ational B ank in
G arner, Iowa, said th at, “having our
teller space located rig h t n ex t to the
bookkeeping d ep artm en t is an advan­
tage for both d ep artm en ts.” R. W.
Davis, p resid en t of th e B enton Com­
m u n ity B ank at B enton, 111., said, how ­
ever, th a t h av in g “th e bookkeeping
d ep artm en t on the low er level elim i­
n ates noise in th e lobby area and is
v ery conducive to w o rk .”
One of th e best-liked features in
new buildings is a com m unity room.
D onald R. O brecht, p resid en t of the
C entral T ru st & Savings B ank of
Geneseo, 111., said th e com m unity
room in the b a n k ’s new building “is
used practically every day and eve­
n in g of th e w eek,” and Mr. Shellenb arg er rep o rted th e com m unity room
a t F a rm e rs State B ank is “booked for
as m uch as tw o m onths in advance.”
Several of th e b an k ers listed driveu p and walk-up facilities am ong th e
b est features of th e ir new banks. Mr.

INTERIOR of m ain office lobby.

identifies an y in terferen ce w ith secu­
rity areas, as w ell as fire alarm s.
tSpecial in terio r finishing includes
w ide use of exclusively designed fu r­
n itu re, w ide use of u n u su al woods,
B otticino m arble and custom -designed v
chandeliers. Several pieces of m ajor
a rt created by w orld-renow ned a r­
tists are incorporated in th e in terio r
design.
S hellenbarger observed: “We have
tw o drive-up w indow s in the side of
the building and a covered drivew ay
th e en tire length of th e building so
these auto custom ers can b an k out of
th e w eather. W e also have a TV
teller u n it in our p ark in g lot, w hich
we use on b u sy days. H ow ever, th e
public did n o t take to this teller arran g em en t as w ell as w e had hoped.”
Ben Abben, p resid en t of F arm ers
T ru st and Savings B ank in Spencer,
Iowa, also noted th a t his b an k ineluded a TV unit, “w hich as of now
th e public has not been too w illing to
accept. W e also have a conventional
window, and th e score has been about
eight to one in favor of th e conventional w indow .” Miss Brow n, how ­
ever, rep o rted th a t th e W eld County
B ank feels its television drive-up
u n its are am ong th e b a n k ’s m ost suc­
cessful features.
T he im portance of drive-up facilities
in new ban k in g q u a rte rs w as em pha­
sized by several bankers. Mr. Nico­
laus said: “P ersonally, I had misgivings about th e desirability and neces­
sity of a drive-up window. Our tow n
is one of approxim ately 2,000 population. I t w ould have been a m istake
for us n ot to have included a drive-up
window. F re q u e n tly we have 75 cars
at our drive-up w indow in a day’s
tim e.”
Mr. O llenburg singled out his b a n k ’s
w alk-up w indow for com m ent: “We

<

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47

feel th a t our w alk-up facility is large
enough to tak e care of an y expansion
w hich m ig h t come. O rdinarily, m ost
w alk-up facilities are n o t adequate for
th e needs of tom orrow , w e feel.”
G iven th is w ide ran g e of replies to
th e question, “W h a t fe a tu re s do you
like b est?” it is p erh ap s n o t su rp risin g
th a t a n u m b er of th e responding
b an k ers an sw ered th e q u e s t i o n ,
“N am e one or m ore item s you m ight
have included if you h ad to do it over
again,” w ith a sim ple “N othing,” or
“W e are v e ry satisfied w ith our new
v building, an d I w o u ld n ’t w a n t to
change an y th in g .”
As m an y of th e replies to th e first
questio n poin ted out, careful choice of
arch ite c t and co n stan t com m unication
w ith him are m u sts in any b uilding
project. Mr. A bben felt th a t “a little
closer su p erv isio n by th e arch itect
and th e d esigner w ould have p erh ap s
J c u t our b uilding tim e schedule dow n,”
an im p o rta n t aspect every b a n k e r
should consider.
Several b a n k e rs specified storage
space as a fe a tu re w hich th e y w ould
im prove w ere th e y ju s t beginning
th e ir b u ild in g p r o j e c t s . Mr. Davis
said: “W e th o u g h t w e had provided
for am ple storage, b u t it seem s you
can n o t have too m uch storage room .”
Mr. Davis and Mr. Rowe also felt th ey
w ould include m ore v a u lt space, if
j,
th ey had to begin again.
Mr. T hork elso n m ade a suggestion
concerning w alk-up w indow service:
“U nless you are living in a m etropoli­
ta n area, I believe th e w alk-up w in ­
dow should be arran g ed so th a t it can
be staffed b y th e drive-up teller or
som e o th er teller, since traffic in th is
w indow u su a lly doesn’t ju stify ty in g
up a te lle r a t a sep arate statio n .”
C oncerning n ig h t depository service,
Mr. H einem an observed: “W e p u t our
n ig h t d epository beside th e fro n t en­
trance, w hich w as a m istake. If I had
t to do it again, I w ould p u t th e n ig h t
depository on th e side of th e b an k
w here th e drive-up w indow is, so cus­
tom ers could driv e th ro u g h w ith o u t
g ettin g out of th e car. I w ould recom ­
m end th is only in sm all tow ns, since
in th e city you w ould have to close
off th e drive-in c e rta in h o u rs of th e
day and n ig h t.”
A n o th er suggestion fo r im prove­
m en t cam e from H a rry W . Sizer, Jr.,
cash ier a t th e Lisbon, Iow a, B ank and
,
T ru st Com pany, w ho felt his b ank
m ig h t w ish to include a n ig h t deposi­
to ry and a com plete b u rg la r control
system if th e p ro ject w ere to be re ­
done.
T his w as th e ex ten t of th e answ ers
to th e final q uestion to th e survey.—
End.
0

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Federal Reserve Bank of St. Louis

Tdeller and Banks in Participation.- A Case Tdistory
Actual figures and circumstances are used, but names and other identifiable
facts are withheld because of the confidential nature of our client relationships.

A Company President writes:
"This'turn around'was made possible
only by close cooperation and
assistance of Heller and our bank."
This letter was written to us on January 20,
1967, and it went on to say that “an overall
yearly profit will be achieved.”
15 months earlier, in October, 1965, the
company had reported a fiscal year loss of
$446,900, after a substantial tax credit, and
the trend was toward continuing losses.

loan, and Heller arranged the client’s return
to the bank—Heller’s policy when a client
becomes “bankable.”
*
*
*

Lending partnerships have helped our
volume surpass $2Vi Billion annually. Cur­
Tw o months after the letter was written, rently, about 100 banks in 25 states have
in M arch o f 1967 , the company had re-estub- participations in Heller loans.
But our banking partners gain something,
lished its ban\ line, and the participating ban\
too. We’ve helped them improve portfolio
had paid out Heller.
The cycle from the time the bank brought items that cause concern, as this case illus­
its customer to Heller and entered into a par­
ticipation arrangement, until bank lending
was resumed, spanned only 19 months!
The circumstances which brought Heller
into the picture were not unusual. A major
move into a new plant had caused unforeseen
difficulties. The company’s working capital
declined from $867,000 in October, 1964, to
$327,000 in May, 1965. What’s more, the
trend was toward further reduction in work­
ing funds. And the bank’s position was com­
plicated by the erosion of net worth.
Meanwhile, sales opportunities were in­
viting the company to grow and, in spite of
its difficulties, the company held a firm posi­
tion in its market. But it was strapped for
working funds, and management was pre­
occupied with finances rather than profit­ trates. We’ve helped them take care of grow­
making functions.
ing customers who have reached their limits
So, in July, 1965, the bank brought its of unsecured credit.
customer to Heller for secured financing. A
Above all, we’ve helped them retain loan
total availability of $800,000 was arranged customers (or take on new customers) they
for against receivables and inventory, 50% might otherwise have lost. Including their
of which was to be supplied by the bank.
deposits.
The initial payout of $550,000 was made in
That’s what makes successful partner­
August. Of that amount, $350,000 was ap­ ships.
plied against the bank’s notes, and the re­
We’d like to send you our brochure,
mainder was added to the company’s work­ “Heller and Banks in Participation.” Drop
ing funds.
us a note, or phone one of our offices if you
Throughout 1966, the company made al­ want immediate information.
most full use of its $800,000 availability. A t
the close of its fiscal year in October, the
company showed an $8,700 net profit (mod­
est, but evidence of the turn around). More­
over, its sales had increased 23% over fiscal
105 W. ADAMS ST. • CHICAGO 60690
1964.

Walter E. Heller
&Company

The favorable profit trend continued into
1967- In March, the bank reacted to the
profit-showing and management’s plans for
the future by re-establishing the company’s
bank line. Funds were immediately made
available to the company to pay off Heller’s

New York • Boston • Philadelphia • Atlanta •
Miami • New Orleans • Dallas • Los Angeles
• San Francisco • Portland • San Juan, P. R.
Brussels • London • Paris • M a in z, West Germany •
Utrecht, Holland • M ilan • Barcelona • Copenhagen •
Bergen, Norway • Stockholm • Johannesburg • W innipeg •
Mexico City • Kingston, Jamaica

Northw estern Banker, December, 1968

48

MERLIN R. GAREY, re tire d pres.. F arm ers & M erchants Bk., of Edison,
N ebr., and his w ife a t th e ir home in Edison.

R etired B anker
Writes H istory o f Nebraska Com m unity
E R L IN R. GAREY, re tire d ow n­
er and p resid en t of th e F a rm ­
ers and M erchants B ank of
E dison, Neb., has recen tly com pleted
a h isto ry of th e E dison com m unity,
en titled “T he L and W here th e M ead­
o w lark Sings,” w hich has been p u b ­
lished in hard-bound edition and is
now in its second p rin tin g . A signifi­
can t accom plishm ent for an y m an,
Mr. G arey has been to tally blind since
th e 1930’s, w h en an eye infection
com pletely deprived him of his sight.
Mr. G arey has had o th er ex p eri­
ences in th e w ritin g field as well.
As no n ew sp ap er w as published in
E dison a fte r W orld W ar II, he w as
th e p u b lish er of a b an k pap er for 20
y ears a fte r losing his sight. He also
has h a d m aterial published in th e
O m aha World Herald and, in 1952,
w ro te a tw o-hour outdoor h istorical
p agean t w hich w as p resen ted a t a lo­
cal fair w ith m ore th a n 150 E dison

M

N orthw estern Banker, December,


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Federal Reserve Bank of St. Louis

7968

resid en ts tak in g p art. A rep eat p e r­
form ance of th e p ageant w as re ­
q uested and given in 1953 and again
as a cen tennial p resen tatio n in 1967.
B eginning in 1957 and con tin u in g
each y e a r before and after his re tire ­
m ent, Mr. G arey and his wife, th e
form er Cora Joh n so n of W ilsonville,
Neb., have trav eled extensively, v isit­
ing every state in th e union w ith the
exception of A laska (w hich th ey hope
to v isit soon), 30 different countries
and five continents. One of th e ir trip s
encircled th e globe.
Mr. G arey is a grad u ate of B eaver
City H igh School, B eaver City, Neb.,
and of the College of B usiness A dm in­
istra tio n at th e U n iv ersity of N ebras­
ka. H e began his b an k in g career as a
bookkeeper a t th e B ank of B eaver
C ity in 1918 and also has w orked at
th e W ilsonville State Bank, W ilson­
ville, Neb., from 1922 u n til joining
th e F a rm e rs and M erchants B ank in

E dison as cashier and m anaging offi­
cer in 1929. He retire d from the
ban k in g business in 1962, selling his
controlling in te re st in th e bank.
Mr. G arey a ttrib u te s m uch of his
success to his “faith fu l and capable”
wife, w ho becam e his secretary in
1939 and later becam e cashier of th e
F a rm e rs and M erchants B ank w hile
he w as serv in g as president. She also
assists him w ith his w riting.
The G areys have tw o children; a
son, Neal, and a daughter, M arjory, as
w ell as six grandchildren.
W hen n o t w ritin g or traveling, Mr.
G arey enjoys ten d in g a fru it orchard
he sta rte d about 20 y ears ago and
read in g talk in g books. He has read
hu n d red s of books on n um erous sub­
jects.
A lthough to tally blind, Mr. Garey
has nev er received nor requested
blind com pensation of any kind.—
End.

W

^

^

r

^
'

If you need to reach a banker in California
before you break for lunch, callU C B.
There’s ample time.
We’re on the job 8 to 5 our time in
California, it makes a long day,
but being full-time bankers makes
a big difference when our customers
and correspondents need answers
before lunch time in the East.

Like the Chicago businessman
who called us from his luncheon
club. Needed to know how much
cash our Remittance Division
had collected the previous day for
his Western Regional office.
Or the Eastern banker who
needed a fast financial rundown
on a California electronic firm
before noon.
Convenient too, to get action
after hours, like the comptroller
who suddenly got approval-and
called u s -a t 7 :30 E.S.T. to buy
California Municipals. He had to
have them on the books that day.
He got them.


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Federal Reserve Bank of St. Louis

If you want a bank out West that
breaks the time barrier-consider
UCB.We can do a little more for you.
(213) 624-0111 in Los Angeles;
(415) 397-2022 in San Francisco.

UNITED
CALIFORNIA
BANK
ME MB E R F. D. I . C .

The bankers
who do a little more for you

Northw estern Banker, Decem ber, 1968

50

Illinois

NEW S
ALLEN P. STULTS
ROBERT C, SCHRIM PLE

President

cago, according to R obert H. B row n,
president.
Mr. V alenti comes to th e Lincoln
N ational B ank from the N ational
B ank of N orth Am erica, New Y ork
City, w here he served as an a ssistan t
b an k m anager.

Chicago

Exec. Vice Pres. Chicago

A eir Huildintf at M t . V ernon
ANKING o perations b egan No­ low er level. The cashier and his staff,
vem ber 18 in th e new shining, tellers and th e in stallm en t loan de­
gold-colored b uilding of F ir s t N ationalp a rtm e n t are in th e m ain lobby. The
B ank and T ru st C om pany of Mt. first floor houses th e executive offices,
com m ercial loan d ep artm ent, tru s t de­
V ernon.
G rand opening an d dedication w ill p artm en t, d irecto rs’ conference room
and cen tral credit files. M aking up
be held in mid-December, a t th e tim e
of th e b a n k ’s 35th an n iv ersary , ac­ th e low er level are th e com puter
cording to E d w ard E. C urtis, p resi­ center, safety deposit vaults, book­
keeping departm ent, trav el bureau,
dent.
cen tral supply, em ployees’ lounges
Dubbed th e “golden n u g g e t” by
local resid en ts because th e ex terio r is and au d iting departm ent.
Am ple p ark in g space is m ade avail­
covered w ith gold-colored m irro rs, th e
new stru c tu re occupies about 85 p er able w ith a two-level park in g ram p.
cent of a city block. The 6 -story, 85- P lan s call for dem olition of th e old
foot high b uilding m easures 100 feet building as soon as it is vacated.
T his land w ill be converted into addi­
by 100 feet.
tional
p a rk in g area.
Floor coverings are carp et and te r­
razo and all fu rn itu re is w aln u t. E x e­
cutive offices are individually deco­ Nam ed V ice P resident
Joseph P. V alenti w as elected vice
ra te d and have wall-to-wall carpeting.
The b a n k in g facility is designed p resid en t of the com m ercial loan de­
p artm en t, Lincoln N ational Bank, Chiw ith a m ain lobby, first floor and

B

Sets Up A ssistantship
C ontinental Illinois B ank and T ru st w
Com pany of Chicago has g ran ted
$5,000 to th e U n iversity of Illinois de­
p a rtm e n t of geography at U rbanaC ham paign to set up a research assist­
an tsh ip in economic geography.
V
T he as y et unnam ed graduate re ­
s e a r c h e r w ill w ork u n d er Prof.
H ow ard Roepke, w ho stated th a t th is ^
is th e first tim e any firm or business
has financed an academ ic position in
geography in any A m erican college or
u n iversity.
T he a ssistan t w ill w ork on prob­
lem s of geography related to area and <veconomic developm ent—th e logistics
of com m ercial and in d u strial location
—of specific geographical areas.
■f

New E conom ic Fact Book
The F ed eral R eserve B ank of Chi­
cago has released a revised edition of
its Econom ic F a c t Book, a 60-page
com pilation of inform ation on th e five
states of the Seventh F ed eral R eserve
D istrict.
New to th e booklet this y ear are tables show ing th e d istrib u tio n of th e
d istric t’s population according to m et­
ro politan area.
Copies of the fact book are available
from the b a n k ’s R esearch D epartm ent.

Joins Chicago Ad Firm

DEDICATION of the new build in g constructed by F ir s t N atio n al B ank & T ru st Com­
pany, M ount V ernon, 111., is scheduled fo r Decem ber 13 a t g ran d opening ceremonies.
Northw estern Banker, December, 1968


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

^

j

X-

u
C. Thom as F redericks, presid en t of
Carobus & Fredericks, Inc., 20 N orth
W acker Drive, Chicago, announced
th e ap p ointm ent of George H. Dempesy as executive vice p resid en t of the
agency, w hich specializes in providing Y
a d v e r t i s i n g and
p u b l i c relations
services for com ­
mercial banks
and savings and
loan associations.
Mr. D e m p e s y ,
form erly director
{
of p u b l i c r e l a ­
tions and adver­
ti si n g for the
A m erican NationG. H . D E M P E S Y
al B a n k and
T ru st Com pany of Chicago, has been
in th e financial com m unications field
for th e last 11 years. He joined th e
loop ban k in 1957 as advertisin g m an­
ager, and w as appointed an officer th e t
sam e year.

51

This cute character
outsmarts some o f the
best bankers in the business.
“Is that anim al w orth his price?”
“W h a t should I w atch for n o w in livestock and
com m od ity futures?”
T h at’s th e k in d o f questions w e’re expected to
h a n d le here at Central N ation al. A n d even this:
“W h a t p la n s sh o u ld farm ers in m y area b e
m aking for th e 1970’s?”
(O ur u nique A gricultural A dvisory C om m ittee
is o n top o f this one.)
T h e easiest question for us: “H o w com e you

k n ow so m u ch about th e farm business?”
A lot o f us here in Central N ation al are farm
bred and farm trained. T his helps give us a head
start in answ ering th e k in d o f agricultural bank­
ing problem s our correspondents w an t answered
fast. Fast and right!
Som e others m ay th in k this kind o f specialized
know ledge and service is too m u ch to ask o f a
banker these days.
B u t n ot us:

The A griculturally-Trained” Agricultural Group o f

Central National Bank in Chicago.
120 South LaSalle Street, Chicago, Illinois 60603. 312/782*2520.
M em b e r F .D .I.C . a n d F ederal R eserve System .


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Federal Reserve Bank of St. Louis

Northw estern Banker. December, 196B

52

'¿We

wish

youa Merry Christmas

We wish you a Merry Christmas,
We wish you a Merry Christmas,
And a Happy New Year.%
from all of us at

Midland National Bank
ofMinneapolis
,

wm

401 Second Ave. So.» Minneapolis, Minn. 55440 • Call 332-0511

estern Banker, December, 1968
DigitizedNorthw
for FRASER
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Federal Reserve Bank of St. Louis

53
and cashier, respectively, a t th e G ran­
ite F alls Bank. Both m en w ere for­
m erly assista n t cashiers. Mr. K n u t­
son has been w ith the b a n k since 1960,
and Mr. Deason joined th e b ank in
1965.

Minnesota

NEW S
I. J. CHOROMANSK!
K. A. W ALES

President

Exec. Secretary

Minneapolis

Marks 8 5 th Year
T h e S tate B ank of New P rag u e re ­
cen tly held an open house in observ­
ance of its 85th y ear in banking, ac­
cording to A. G. Sirek, b a n k president.
T he b an k also h as in stalled a new
w alk-up w indow to provide custom ers
full service b a n k in g ac tiv ity before
and a fte r n o rm al b an k in g hours.

O bserves 3 0 \ ears
The S tate B ank of B row nsdale re ­
cen tly observed its 60th an n iv e rsa ry
w ith an open house, according to W.
I. D anielson, b an k president.
The a n n iv e rsa ry had a tw ofold
m ean in g to Mr. D anielson, as it also
m ark ed five y ears to th e day since his
fam ily p u rch ased th e bank.

Increase Capital Stock
C apital stock increases in th e fol­
low ing am o u n ts have been approved
by th e D ep artm en t of Com m erce for
th e b an k s listed below:
State B ank of Maple P lain —in ­
crease from $60,000 to $75,000 by sale
of new stock.
A m erican State B ank of M oorhead
—in crease from $300,000 to $500,000 by
stock dividend.
Sum m it S tate B ank of RichfieldB loom ington — increase from $200,000
to $280,000 b y sale of new stock.

Joins First State
D arw in D. R on n g ren has been elect­
ed a ssista n t vice p resid en t a t th e F irs t

M innesota Calendar
Feb. 25-26— MBA B ank M anage­
m e n t Conference,
Radisson, M inneapo­
lis.
A pril 8 - 9—MBA C o n s u m e r
L ending Conference,
L eam ington, M inne­
apolis.
May 4- 7—A nnual W ash in g to n
Trip,
Minnesota
B ankers.
Ju n e 8-11—A n n u a l MBA Con­
v e n t i o n , Statler-H ilton Hotel, St. Paul.

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Federal Reserve Bank of St. Louis

C om pletes E xpansion

Crystal

State Bank, Paynesville. Mr. R onn­
gren has been em ­
ployed in th e ex­
am ination departm e n t of F i r s t
Service C orpora­
tion s i n c e 1967
and had been
serv in g as a su ­
p e r v i s i n g exam ­
in er since Ju n e
of th is year. He
began his b a n k ­
D. D. R O N N G R E N
ing career as a
tra in ee at th e Jam estow n N ational
B ank, Jam estow n, N. D., in 1960.

O pens New B u ilding
Open house w as held recently at th e
S tate B ank of H aw ley in observance
of th e opening of th e b a n k ’s new
$125,000 building.
T he new colonial-design brick build­
ing is located a t the co rn er of H a rt­
ford and Sixth Streets, tw o blocks
n o rth of th e b a n k ’s previous location.
The in te rio r of th e building features
wall-to-wall carp etin g and tiled ceiling
w ith recessed fluorescent lighting. A
p a rk in g lot is located on the east side
of th e building.
The bank features five teller sta­
tions, drive-in w indow , conference
room , priv ate office and a large room
for b u siness m achines. Also included
are a m odern v a u lt and alarm system
and tw o safety deposit booths.
George W astvedt is b ank president.

F reeb o rn N ational B ank has com­
pleted an expansion-rem odeling pro­
g ram in dow ntow n A lbert Lea on th e
so u th east co rn er of W illiam and
B roadw ay Street, w here th e b an k has
done business since 1930. The new
addition to th e b an k houses an ex­
panded in stallm en t loan d ep artm ent,
and increases th e b a n k ’s w orking area
by n early one-third.

Nam ed Assistant Cashier
Dale W. Teich has been nam ed as­
sista n t cashier a t th e N o rth w estern
B ank of Bloom ­
ington - Richfield.
Mr. Teich re tu rn s
to the b an k after
s e r v i n g as a
N o rth w est B a n corporation exam ­
iner and was
m ost recen tly em ­
p l o y e d by t he
N o r t h western
D. w . t e i c h
s ta te Bank, Mon­
tevideo, Minn. He w ill be serving th e
bank in B loom ington as an in stall­
m ent loan officer.

5 0 th

Y e a r

Plans New Facility
T he F irs t N ational B ank, Sauk Cen­
tre, has announced plans for th e con­
stru ctio n of a new up-to-date b anking
facility. The p re se n t b an k building,
w hich w as constructed 60 years ago,
w ill be to rn dow n and a new stru c ­
tu re erected on the sam e location.
The b ank w ill be open for business
at a tem p o rary location directly be­
hind its p resen t building d u rin g th e
con struction process.

P rom otes Two
R ichard Deason and Odell K nutson
have been prom oted to vice presid en t

50TH ANNIVERSARY — F ir s t A m erican
N atio n al B ank of D uluth, M inn., an ­
nounced th e 50th a n n iv ersary of its tr u s t
d ep artm en t w ith a full-page new spaper ad
fe a tu rin g th e fro n t page of the D uluth
paper of th e day the tru s t powers were
g ra n te d — A rm istice Day. P ic tu re d w ith
the two-color ad are William M. Reynolds,
le ft, senior vice p resid en t and tr u s t officer,
and Emmons W. Collins, board chairm an.
F irs t A m erican becam e the first D uluth
b an k to be g ra n te d tru s t pow ers by the
fed eral governm ent Nov. 11, 1918. The
b a n k ’s tr u s t d ep artm en t now has over 20
fu ll tim e employees and is responsible fo r
the m anagem ent of more th a n $100 m illion
of tr u s t assets.
N orthw estern Banker, December, 1968

54

HE Marquette National B ank has
com pleted negotiations for leasing
th e 25,000 sq u are foot E. R. Squibb
B uilding at In te rs ta te 494 and N orm andale Road to house its expanded
B ankA m ericard operation. P re p a ra ­
tio n s for m oving th e B ankA m ericard
d e p artm e n t from th e M arquette B ank
B uilding to its new location are now
in progress. T he building w ill be
know n as th e B ankA m ericard C enter.
A rrang em en ts w ere com pleted ahead
of
schedule w ith Squibb Com pany
rep resen ta tiv es for a 20 -year lease in
o rd er to allow th e ord erly expansion
o f th e b a n k ’s new B ankA m ericard
cred it card program .
“D espite original plans for such a
m ove in about th re e y ears,” Ja c k Bell,
vice p resid en t and B ankA m ericard
m anager, said, “th e new B ankA m eri­
card operation alread y has outgrow n
its p resen t location on th e th ird floor
o f th e M arquette B an k dow ntow n.
The en tire cred it card staff and opera­
tions w ill be in th e Squibb B uilding.”
* * *
Two checks to talin g m ore th a n $1
m illion in re tire m e n t benefits have
been p resen ted to Daniel C. Gainey,
re tire d board ch airm an of Jo ste n ’s
Inc., by Jam es C. Harris, executive
vice p resid en t and head of th e tru s t
d ep a rtm e n t of N o rth w estern N ational
B ank of M inneapolis. The b an k is
tru ste e for J o ste n ’s profit sh arin g and
pension tru sts.
Believed to be th e record for a
re tire m e n t benefit paid to an in d i­
vidual, th e profit sh a rin g check w as
$977,812.30, and th e lum p sum pension
check w as $262,872.38.
Jo ste n ’s is one of th e n a tio n ’s lead­
ing producers of scholastic m otivation
an d recognition products. I t is located
in O w atonna, M inn.
* * *
William R. Chapman, p resid en t of
M idland N ational B ank of M inneapolis
and general cam paign ch airm an of the
U nited F u n d of th e M inneapolis area,
is show n w ith Alan H. Moore, vice
presid en t of th e F irs t N ational B ank

T

Northw estern Banker, December, 1968


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Federal Reserve Bank of St. Louis

of M inneapolis and ch airm an of the
adm issions and allocations com m ittee,
displaying a g ian t deposit ticket re p re ­
sen tin g resu lts of th e cam paign drive.
The M inneapolis A rea U nited F u n d
raised $7,205,052 for 100.4 p er cent of
its cam paign goal of $7,178,000. The
figure w as released as the final audit
w as concluded, 20 days a fter th e close
of th e an n u al cam paign in H ennepin
and p a rts of Anoka, C arver and R am ­
sey counties.

GIANT DEPOSIT TICKET held by Wil­
liam R. Chaplain (rig h t) and Alan H.
Moore shows th a t th e M inneapolis a rea
U n ited F u n d cam paign w ent over the top.

The am o unt raised th is y ear is the
larg est dollar increase in th e histo ry
of local federated cam paigns. Despite
th e record goal, m em bers of th e ad­
m issions and allocations com m ittee are
facing th e “g reatest budgeting prob­
lem ” in th e U nited F u n d experience.
U nited F u n d agencies subm itted
in itial b udget req u ests totalin g alm ost
$1 ,000,000 m ore th a n th e adopted goal
of $7,178,000.
T here are p rio rity com m itm ents for
m ost of th e additional funds. Mr.
C hapm an said planned expenditures
for an expanding role of U nited F und
agencies in u rb a n area problem s w ere
also included in th e goal.
P anels com prised of m em bers of the
adm issions and allocations com m ittee
are now m eeting w ith U nited F u n d
agency leaders to stu d y ann u al budg­

ets. The U nited F u n d board of direc­
tors expects to m eet D ecem ber 19 to
review allocation recom m endations of
the com m ittee.
* * *
The Midwest Banking Institute is
the new nam e for th e tri-state R ural
B anking School on the M orris cam pus
of th e U n iv ersity of M innesota, ac­
cording to an an n ouncem ent by the
board of directors a t its recent m eet­
ing in M inneapolis.
School D irector T ru m an L. Jeffers,
secretary of th e M innesota B ankers
A ssociation, said: “The nam e w as
changed by th e board to reflect th e
com prehensive aspects of th e educa­
tional program at th e School. The
M idw est B anking In stitu te w ill con­
tin u e to provide a course of study for
b an k ers concerned about th e fu tu re of
th e ru ra l com m unity in tra n sitio n and
in terested in serv in g th e changing
needs of th e ir custom ers.”
The M idw est B anking In stitu te is
sponsored by the M innesota, N orth
D akota and South D akota B ankers As­
sociations and is planned and con­
ducted in cooperation w ith the A gri­
c u ltu ral E x ten sio n Services of the
U n iversity of M innesota, N orth D akota
S tate U n iversity and South D akota
S tate U niversity.
* * *
James E. McCann has been pro­
m oted to assistan t vice presid en t in
the com m ercial loan division of Com­
m u n ity State Bank. He joined th e
b ank in 1963.
* * *
John S. Haertel has joined E bin
R obertson and Company, Inc., M inne­
apolis in v estm en t b an king firm, as an
a ssistan t vice p resid en t and senior
u n d e rw rite r for debt securities. He
w as form erly m anager of the m unic­
ipal section of th e bond d ep artm en t of
N o rth w estern N ational B ank of M inne­
apolis.
* * *
Dain, K alm an and Quail, Inc., has
announced form ation of a new divi­
sion, in v estm en t advisers. It w ill

v,

*

L

{

f

55

Consolidated Statement
Directors
of Condition
D E W A L T H. A N K E N Y

OCTOBER 30, 1968

C H A R L E S H. B E L L
Chairm an of E x e c u tive Comm .
G eneral M ills , Inc.

ASSETS

Cash and Due from Banks ...........
- $188,979,829.19
67,762,844.66
U. S. Government Securities .....
State, Municipal and Housing Securities .... 87,592,359.53
Other Securities ................................. 40,451,214.26
Loans and Discounts ___
544,012,863.24
Bank Premises and Equipment ......
10,018,224.35
interest Receivable ............................
4,496,954.92
Other Assets ..............
4,592,574.68
TOTAL ASSETS .....

$947,906,864.83

LIA BILITIES

Demand Deposits ........... ............ ... .. $460,370,184.13
Time Deposits ....
310,620,365.53
TOTAL DEPOSITS ...
$770,990,549.66
Borrowed Funds ................................. 71,055,297.81
Unearned Income ..............................
7,418,913.31
Accrued Expenses and Other Liabilities ....
8,202,399.17
Reserve for Possible Losses on Loans ....... 10,879,134.57

Capital Notes .................................. $
Capital Stock ....................................
Surplus ............................................
Undivided Profits ..............................

10,000,000.00
25,000,000.00
25,000,000.00
19,360,570.31

TOTAL C APITAL FUNDS ........ $ 79,360,570.31
LIABILITIES

B E N TO N J . CASE
D ire cto r, Th e Cro sb y Com pany
G E O R G E B. C L IF F O R D , J R .
J O H N H. D A N IE L S
Chairm an of the Board
A rc h e r Daniels M idland Com pany
D O N A L D C. D A Y T O N
D ire cto r, Dayton Corporation
K E N N E T H N. D A Y T O N
E x e c u tive V ic e P res, and D ire cto r
Dayton Corporation
S T E P H E N P. D U F F Y
Ch airm an of the Board
O u r Own H a rdw a re Com pany
A L B E R T G. E G E R M A Y E R
Senior V ic e P re s., C a rg ill, Inc.
R O B E R T H. E N G E L S
President
N orthern States Pow er Com pany
ROBERT FAEGRE
Managem ent Consultant
Robert T . P h illip s and Assoc., Inc.
B. C. G A M B L E
Ch airm an of the Board
Gam ble-Skogm o, Inc.

C A P IT A L FUNDS

TOTAL

JU D S O N B E M IS
President, Bemis Com pany, Inc.

.............. $947,906,864.83

P A U L S. G E R O T
H on o rary Ch airm an of the Board
The P illsb u ry Com pany
J A M E S C. H A R R IS
E xe c u tive V ic e President
P H IL IP B, H A R R IS
President
F. P E A V E Y H E F F E L F IN G E R
H on o rary Chairm an of the Board
Peavey Com pany
JO H N A . M O O R H E A D
Ch airm an of the Board and
Ch ief E x e c u tive Officer
JO H N S. P IL L S B U R Y , J R .
President, N orthw estern National
L ife Insurance Com pany
H EN R Y T. R UTLED G E
President
N orthw est Bancorporation
H. P. S K O G L U N D
Chairm an of Board and President
North Am erica n Life
& Casualty Com pany
L U C IA N S. S T R O N G
J A M E S A . W A TS O N
P resident, Red Owl Stores, Inc.
A L F R E D M . W IL S O N
E xe c u tive V ic e President
H oneyw ell, Inc.

Northwestern
National
Bank
of Minneapolis

M a y we help you today?

Member Federal Deposit Insurance Corporation


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Federal Reserve Bank of St. Louis

North western Banker, December, 7968

56

fflm .

Northw estern Banker *

December, 1968


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Federal Reserve Bank of St. Louis

57

Whether to purchase a new spreader or make do with the old one.
Whether to borrow long or short-term funds. You can help the rural
businessman answer “whethers” like these with Continental Bank’s
Agri-Credit Portfolio. It’s designed to help you work with him in
forecasting his cash needs for the coming year.
This year we are offering a valuable supplement to the Agri-Credit
Portfolio. It’s called “Cash Flow—A Money Map To Farm Profit.”
This booklet helps the rural businessman understand the basic techniques
of cash flow forecasting and explains the many ways he can use such
forecasting to increase profitability.
We invite you to use our Agri-Credit Portfolio and “Money Map To
Farm Profit” in analyzing your fall loan opportunities. They’ll combine
to help you and the rural businessman work together more effectively.
Whether it rains or shines.

I t ’s w h a t you’d e x p e c t fro m
th e b ig g est b a n k in C h ic a g o .

Continental Bank

Continental Illinois National Bank and Trust Company of Chicago. 231 South LaSalle Street, Chicago, Illinois 60690. Member F.D.I.C.
Northw estern Banker, December, 1968


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

58

Minnesota News

Your man
At the
Am erican!

N

ROBERT E. SIPPLE
Adm inistrative
Vice President
B A N K S

and

B A N K E R S

To Our Many
Friends in Banking . . .
Best Wishes
for a
Happy Holiday
Season
" The Largest Independent
Full Service Bank
in the Upper Midwest ’ ’

AMERICAN
NATIONAL
BANK AND TRUST
COMPANY
Seven th and R obert
Saint Paul

2 2 2 -6 6 6 6
Member Federal Deposit Insurance
Corporation • Federal Reserve System

Northw estern Banker, Decem ber, 1968


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

c arry on th e activities of the in v est­
m en t m anagem ent departm ent.
H enry W. Norton, Jr., vice p resi­
d en t and director of th e M inneapolisbased in v estm en t b an king firm, is
p resid en t of th e new division, and
Lorrain M. Kosslak is secretary-treas­
u rer.
* * *
T hree new directors have been
elected to th e F ed eral R eserve B ank
of M inneapolis. T hey are: G. A. Dah­
len, p resid en t of F irs t N ational Bank,
Ironw ood, Mich.; Dale V. Andersen,
p resid en t of M itchell P acking Com­
pany, M itchell, S. D.; John Bailey,
p resid en t of C retex Com panies, Inc.,
E lk R iver, Minn.
Mr. D ahlen w as nam ed to a threey ear term , succeeding C urtis B.
M ateer, p resid en t of P ierre N ational
B ank, P ierre, S. D. Mr. A ndersen and
Mr. B ailey w ere nam ed to a tw o-year
and th ree-year term respectively.
* * *
Harold Anklam, a ssistan t vice p resi­
d en t of th e Cam den N orth w estern
State B ank, re tire d from banking on
N ovem ber 30. Mr. A nklam w as hon­
ored w ith “H arold A nklam D ay” at
th e bank.
Mr. A nklam joined Cam den N o rth ­
w e ste rn in 1955 and w as elected assist­
a n t vice presid en t in 1966. He began
his b an k ing career in 1920 at the
N orth A m erican office of th e N o rth ­
w estern N ational Bank.
* * *
F irs t B ank System , M inneapolis,
Minn., has announced the election of
William J. Bingham, Jr., as vice p resi­
d en t and Frank E. Porter as secretary
and corporate counsel of th e corpora­
tion. Mr. B ingham ’s election w ill be
effective J a n u a ry 1, 1969, and Mr.
P o rte r’s effective im m ediately.

w . J. B IN G H A M , JR.

F. E. P O R T E R

Mr. B ingham w ill have senior
resp o n sib ility for th e system in the
areas of m anpow er planning, train in g
and com pensation. He comes to F irs t
B an k System f r om th e N ational B ank
of D etroit, Mich., w h ere since 1963 he
has served as vice presid en t and di­
recto r of personnel.
Mr. P o rte r joins F irs t B ank System
follow ing previous em ploym ent w ith
G eneral Mills, M inneapolis, Minn.,

since 1959. D uring his association w ith
G eneral Mills, he served in th e legal
and financial areas and since 1967 w as
counsel for G eneral Mills subsidiaries
w ith responsibility for legal affairs.
* * *
Kenneth R. Johnson, vice president,
has been nam ed head of th e estates
d i v i s i o n i n th e
tru s t d ep artm en t
at F irs t N ational
B ank of M inne­
apolis. I n his
new position, Mr.
Joh n so n w ill have
a s h is d e p u t y
James P. Hesketh,
a s s i s t a n t vice
president.
T
„
M r. , J o h n s o n
K. R. J O H N S O N
succeeds Lee A.
Short, vice presid en t and tru s t officer,
w ho w ill assum e th e responsibilities of
senior con su ltan t in th e tr u s t d ep art­
m ent, in anticipation of his retirem en t
n ex t M arch.
>i= * *
The N o rth w estern B ank News, em ­
ployee publication of th e N o rth w est­
ern N ational B ank of M inneapolis,
has w on first place aw ards in th e
M inneapolis a re a ’s 1969 U nited F und
in d u strial ed itors’ com petition. E d ito r
of the publication is Miss Teri Ann
Willett.
T he aw ards w ere for th e best
U nited F u n d featu re story and for th e
best use of photographs.
* * *
Cal Sabatini, form er U niversity of
M innesota eager captain and star, has
re tu rn e d to th e state to p u t his leader­
ship in back of a new squad, the BankA m ericard sales force at M arquette
N ational Bank, M inneapolis.
B u rto n N. Noah, executive vice
presid en t of M arquette, announced
th a t Mr. Sabatini has been appointed
sales and m ark etin g m anager of the
b a n k ’s new B ankA m ericard program .
In th is new ly created position, Mr.
Sabatini w ill d irect sales personnel in
re c ru itin g m erch an t m em bers to the
B ankA m ericard credit card system .
P rio r to his ap p o in tm en t at M ar­
qu ette Bank, Mr. Sabatini served in a
sim ilar capacity at th e C ontinental
Illinois N ational B ank and T ru st Com­
pany of Chicago.
* * *
H enry T. Rutledge, presid en t of
N o rth w est B ancorporation, and Rob­
ert L. Beal, presid en t of Iow a Secu­
rities Company, have announced an
agreem ent in principle u n d er w hich
N orthw est B ancorporation w ill acquire
all of th e ou tstan d in g com m on stock
of Iow a Securities Com pany in ex­
change for N o rth w est B ancorporation
com m on stock. The tran sactio n is

r

V

c

V.

59

The First National Bank of Saint Paul
D ivision I —B anks an d B ankers


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

W allace L. Boss

H enry N. S nyder

D onald W . B uckm an

R ichard C. S w anberg

E. R oger C unningham

John F. M ullen

Jam es T. G ow an

R obert F. D onlan

L aurence R. K ennedy

T hom as T. D w ight

N orthw estern Banker, December,

796ft

Minnesota News

60

----------------------------------------------- ">

Your man
A t the
Am erican!

ARTHUR A. HAESSIG
Vice President

BANKS and BANKERS

To Our Many
Friends in Banking . . .
Best Wishes
for a
Happy Holiday
Season
“ The Largest Independent
Full Service Bank
in the Upper Midwest
' '

AMERICAN
NATIONAL
BANK AND TRUST
COMPANY
Seven th and R obert
S aint Paul
2 2 2 -6 6 6 6

^

Member Federal Deposit Insurance
Corporation » Federal Reserve System

N orthw estern Banker,

!

December, 1968


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

subject to approval of reg u lato ry
au th o rities.
Iow a Securities Company, founded
in 1906, is engaged in a general m o rt­
gage servicing business. I t has offices
in W aterloo, Des Moines, D avenport,
Cedar R apids and D ubuque, Iowa;
Omaha, Nebr.; and St. Paul, E dina and
R ochester, Minn. The com pany is
p resen tly servicing for in stitu tio n al in ­
v esto rs about 17,500 m ortgage loans
to talin g n early $270,000,000.
Iow a Securities Com pany w ill con­
tin u e all of its p resen t m ortgage
servicing operations as a w holly-owned
sub sid iary of N o rth w est B ancorporation, re ta in in g its p resen t m anagem ent
and personnel.
>K
p o i n t e d to t h e
board of directors
of N orth w estern
S tate Bank. Mr.
H older is th e gen­
eral m anager of
the St. P aul divi­
sion of W hirlpool
C orporation. P re ­
vious
t o h is
p resen t responsi­
bilities, he served
L. G. H O L D E R
W hirlpool at th eir
I j. K. (Bit) Holder has been apE vansville and St. Joseph offices.
* * *
P lans have been unveiled for con­
stru ctio n of the new Federal Reserve
Bank of Minneapolis, according to
Hugh D. Galusha, Jr., b ank president.
The new 10-story granite, glass and
steel building w ill be cantilevered
like a bridge over a sloping plaza on
th e block betw een N icollet Mall, M ar­
q u ette A venue, W ashington A venue
and T h ird Street.
The b uilding above the plaza w ill be
for offices. The granite-covered plaza
will lie over th ree floors of park in g
ram ps, delivery area and vaults.
I t is believed th a t the tw o-part bank
w ill be th e only building in th e w orld
con stru cted by the cantilever m ethod,
w hich places all building su p p o rt on
the outside of th e stru ctu re, leaving
all inside office space free of colum ns
or su p p o rtin g w alls. A cluster of
elevators w ill ru n up th e center of
th e building.
Because building plans are n ot yet
com plete, a cost figure has n ot been
determ ined.
* * *
Thomas Hayden and Ralph Nelson,
Jr., have been nam ed correspondent
b an k in g rep resen tativ es a t N o rth w est­
ern N ational B ank of M inneapolis.
Mr. H ayden joined the b an k in 1960
as a teller and in 1962 w as tra n sfe rre d
to th e collection d ep artm ent, w here
he served u n til 1967, w h en he became

P la z a

D is p la y

AS NEWSMEN and w orkm en w atched, a
3,900-pound bronze sta tu e w as g ently low ­
ered in to place on th e P laza a t F ir s t N a­
tio n al B ank of M inneapolis, w here it w ill
rem ain fo r the n e x t tw o years. T itle of
the sta tu e , by th e fam ed Jacques Lipschitz, is “Prom etheus S tran g lin g the
V u ltures.” W alker A rt C enter, ow ner of
th e statu e, is being re b u ilt and th e bank
welcomed an op p o rtu n ity to display th e
piece on loan.

a business service rep resen tativ e. H e
w ill be serving b an k ers in South Da­
kota in his new position.

T. A. H A Y D E N

R. N E L S O N , JR .

Mr. N elson joined th e b ank in 1967.
He w as p lan t accountant for L akehead
Pipeline Com pany, Inc., in Superior,
Wis., p rio r to th a t tim e. In his new
position, he w ill be serving ban k ers
in n o rth e rn M innesota.
* =t= *
The S tate D ep artm ent of Commerce
has approved an am endm ent au th o riz­
ing an increase in capital stock from
$150,000 to $210,000 at the Southvievv
State Bank, South St. Paul. The in ­
crease is to be accom plished th ro u g h
the sale of new stock.
* * =1=
Otto Janke, a d m in istrato r of St.
Paul-R am sey H ospital, has resigned
as a d irector of Sum m it N ational
Bank, a fter being inform ed th a t he
had a conflict of in te re st because hos­
pital funds w ere deposited in the bank.
Mr. Ja n k e announced th a t he had
resigned th e directorship, w hich he
had held for a m onth, after E dw ard
Cleary, a ssista n t R am sey County a t­
torney, explained to th e board th a t
state law p rohibits any governm ental
em ployee from h aving an in te re st in a

61

F ir s t National Bank of M inneapo lis
Consolidated S T A T E M E N T O F C O N D IT IO N
October 3 0 ,1 9 6 8
ASSETS
Cash and Due from B an k s............................................ $204,181,403.81
76.346.718.50
United States Government O b lig a tio n s ....................
90,889,101.23
State and Municipal S ecurities....................................
15.285.798.51
Other Bonds and S e c u r it ie s ........................................
2,500,000.00
Federal Funds S o l d ........................................................
Loans and D is c o u n t s ....................
$520,191,212.07
Less Reserves o f ........................
6,785,363.94 513,405,848.13
17,845,226.09
Bank Premises and F ix tu r e s ........................................
3,854,332.16
Accrued Interest R e ce iv a b le ........................................
7,218,350.19
Other A s s e ts ....................................................................
$931,526,778.62

LIABILITIES

<

Deposits:
D em an d ................................
T i m e ....................................
Total D e p o s its ................
Mortgage P a y a b l e ................
Federal Funds Purchased . .
Bills Payable
........................
Unearned Income
................
Accrued and Other Liabilities
General R eserves....................
Stockholders Equity:
Capital S t o c k ....................
S u r p lu s ................................
Undivided Profits
. . . .
Total Stockholders Equity

1

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

........................$454,549,037.72
....................
297,622,570.12
........................$752,171,607.84
....................
7,796,503.31
....................
74,750,000.00
....................
2,500,000.00
....................
8,841,236.16
....................
17,096,524.71
....................
2,900,000.00
$22,500,000.00
27,500,000.00
15,470,906.60
....................

65,470,906.60
$931,526,778.62

D IR E C T O R S
A t h e r t o n B e a n C h a irm a n o f the E xecu tive C om m ittee,
In te rn a tio n a l M illin g C o m p a n y , In c .
T h e o d o r e W . B e n n e t t M in in g E n g in e e r
C o n l e y B r o o k s P resid en t, B ro o ks-S ca n lo n , In c .
G r a n g e r C o s t ik y a n P re s id e n t,
F ir s t B a n k S ystem
J o h n C o w l e s C h a irm a n o f the B o a rd ,
M in n e a p o lis S ta r a n d T r ib u n e Co.
B r u c e B . D a y t o n P re sid e n t, D a y to n C orpo ra tio n
G e o r g e H . D ix o n P re sid e n t
F r a n k A. D o n a l d s o n P resid en t,
D o n a ld so n C o m p a n y , In c .
P h i l i p M . H a r d e r V ice P re s id e n t a n d
S e n io r L e n d in g Officer
T o t t o n P . H e f f e l f i n g e r C h a irm a n o f the B o a rd
a n d C h ie f E x ecu tive Officer, P eavey C o m p a n y
E r w in E . K e l m P re sid e n t, C a rg ill, In co rp o ra ted
D a v id M . L i l l y C h a irm a n o f the B o a rd ,
T oro M a n u fa c tu r in g C orporation
J a m e s P . M c F a r l a n d P resid en t,
G eneral M ills , In c .
C l in t o n M o r r is o n C h a irm a n o f the
T r u s t C o m m ittee
G o r d o n M u r r a y C h a irm a n o f the B oard
L e o n a r d H . M u r r a y P resid en t,
Soo L in e R a ilr o a d C o m p a n y
J ay P h i l l i p s C h a irm a n o f the B oa rd ,
E d . P h illip s & S o n s Co.
C h a r l e s F . P ie r s o n C h a irm a n a n d C h ie f
E x e c u tiv e Officer, F a rm h a n d , In c .
P h i l i p W . P il l s b u r y H o n o ra ry C h a irm a n o f the
B o a rd , T h e P ills b u r y Co.
A l e x a n d e r Q u e r y S e n io r V ic e P resid en t,
T h e P r u d e n tia l In s u r a n c e C o m p a n y o f A m e ric a
C h a r l e s J . W in t o n , J r . C o -C h a irm a n o f the
B o a rd , T h e W in to n Co.
P a u l B . W is h a r t C h a irm a n o f the F in a n c e
C om m ittee, H o n eyw ell In c .
R o b e r t C . W o od P resid en t,
M in n e a p o lis E lectric Steel C astin g s Co.
J a m e s T . W y m a n P resid en t,
S u p e r V a lu Stores, In c .

Northw estern Banker, December,

1968

62

Minnesota News

Your man
At the
Am erican!

THIS SKETCH shows b e a u tifu l new h ead q u arters build in g opened th is m onth by F ir s t
A m erican N a tio n a l B ank, St. Cloud, M inn.

On the Cover

F i r s t . 1 m orirti n » / ’ S t. Flo nil
Opr ns
NewHuilding This S ton th
JOHN D. CLEARY
A ssista n t Vice P resident

BANKS and BANKERS

To Our Many
Friends in Banking . . .
Best Wishes
for a
Happy Holiday
Season
"The Largest Independent
Full Service Bank
in the Upper Midwest "

AMERICAN
NATIONAL
BANK AND TRUST
COMPANY
1

S e v e n t h a n d Robert
Saint Pa ul
2 2 2 -6 6 6 6

Member Federal Deposit Insurance
Corporation • Federal Reserve System

Northwestern Banker, Decem ber, 1968


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

O

F F IC E R S and em ployees of th e
F irs t A m erican N ational B ank in
St. Cloud, Minn., opened th e doors of
th e ir b eau tifu l new b ank building for
an open house celebration on S a tu r­
day, D ecem ber 7, from 10:00 a.m. to
6:00 p.m. and on Sunday, Decem ber 8 ,
from 1:00 p.m. u n til 6:00 p.m.
V isitors view ed th e fountains, origi­
nal sculpture, plazas, m alls and can­
opy covered sidew alks th a t m ake th e
new facility one of th e m ost o u tstan d ­
ing and a ttra c tiv e new b an k build­
ings in th e m idw est today.

All area resid en ts and friends w ere
inv ited to p articipate. T here w ere
special gifts for th e ladies, m en and
c h i l d r e n , and refresh m en ts w ere
served th ro u g h o u t each day.
F ree savings accounts w ere aw ard­
ed in a prize draw in g w ith a special
prize for boys an d girls u n d er 15.
F o r a period follow ing th e open
house, people opening new savings o r
checking accounts a t th e F irs t A m eri­
can B ank w ill be given gifts especial­
ly selected for th e opening celebration,
according to B. R. Meinz, president.

firm th a t does business w ith an agency
em ploying him .
* >i= *
W here to ski, how to ski, w h a t to
w ear—th ese are a few of th e im por­
ta n t fe a tu res of a new fam ily skiing
guide now available free a t th e N o rth ­
w estern B anks of th e T w in Cities
area.
T he 32-page, pocket-size booklet pro­
vides a listin g of skiing spots th ro u g h ­
out th e sta te of M innesota w ith infor­
m ation on each including th e num ber
and typ es of tows, nu m b er of ru n s
and how long, costs, program s avail­
able, accom m odations and phone n um ­
bers.
Special a tten tio n is given to the
skiin g facilities in th e im m ediate area
of th e T w in Cities w ith descriptions
of th e skiing in stru ctio n program s
sponsored by th e p ark boards of Min­
neapolis and St. Paul.
A center-spread m ap of th e state
show s locations and provides phone
n u m b ers to call in th e various areas
for im m ediate inform ation on local
conditions.
The fast-grow ing sp o rt of snomobil-

ing is covered in a section id entifying
807 m iles of snom obile trails in state
p ark s and 444 m iles in M innesota n a­
tional forests w ith phone n u m bers for
local inform ation.
Snom obile safety and courtesy ru le s
plus a few first aid tip s com plete th e
booklet.
* * *
The addition of tw o new executives,
R aym ond R. Grove and Jam es J. T)eib ert, to th e staff of N o rth w estern Na­
tional B ank of St. P au l and th e ir elec­
tion as officers w as announced b y
Jo h n A. M cHugh, president.
Mr. Grove, w ho has been elected an
a ssistan t vice p resid en t of N o rthw est­
ern, joins th e b an k after being w ith
Grove F inance since 1957. In his new
responsibilities a t th e ban k he w ill
be in charge of th e credit card d ep art­
m ent. (The N o rth w estern is one of
seven m ajor Tw in Cities banks w ho
have form ed th e C entral States Bankcard A ssociation w hich w ill b rin g out
a jo in t credit card n ex t year. Mr.
Grove w ill be responsible for devel­
oping and im plem enting NW NB p a r­
ticipation in th is program .) He is a

Minnesota News

M in n eso ta Itti n iters W in 3 0 th
N a tia n a l A t/ric n ltn ra l A w a rd

M i n n e s o t a B a n k e r s A ssociation
P re sid e n t J. J. C horom anski, p resi­
d e n t of th e C rystal S tate B ank, C rys­
tal, co n g ratu lated th e m em bers of th e
MBA A g ricu ltu ral C om m ittee and all
M innesota B an k ers on achieving th e
n atio n a l honor, and expressed confi­
dence th a t th e M innesota b an k in g in ­
d u s try w ill continue to w o rk for

g re a te r u n d erstan d in g and coopera­
tio n betw een th e farm and financial
com m unities.
A g ricu ltu ral projects of th e M inne­
sota B ankers A ssociation w ere carried
out d u rin g th e 1967-68 y ear by the
A ssociation’s a g ricu ltu ral com m ittee.
C hairm an of th e com m ittee is Leslie
W. P eterson, executive vice p resident
of th e F a rm e rs State Bank, T rim ont.
A m ong th e activities of th e agricu l­
tu ra l com m ittee, th e A m erican B ank­
ers A ssociation noted th e ou tstan d in g
a g ric u ltu ral projects including joint
sponsorship of th e R u ral B anking
School, at th e U n iversity of M inne­
sota, M orris Campus; su p p o rt of the
F u tu re F a rm e rs of A m erica and N a­
tional 4-H Foundation; co-sponsoring
th e F a rm Incom e T ax S hort Course;
tra v e l aw ard to 4-H and F F A m em ­
bers for natio n al conferences and
sponsorship of an A gricu ltu ral B reak­
fa st and P rogram at th e A nnual B ank­
ers Convention.

1955 g rad u ate of St. Olaf College w ith
a m ajo r in econom ics and h ad p re ­
v io u sly served tw o y ears in th e U. S.
A ir Force.
Mr. D eibert joins N o rth w e ste rn a ft­
e r being a n atio n al b a n k exam iner
from 1965 to th e p re se n t tim e. He has
b een elected an a ssista n t cashier at
N o rth w e ste rn and w ill head up the
b a n k ’s c re d it a n a l y s i s d ep artm en t.
Mr. D eibert is a g rad u ate of th e A m er­
ican In s titu te of B anking, 1961, and
of th e U n iv ersity of N orth D akota,
1965, w h ere he received a B.S. in ac­
counting. He began his b an k in g ca­
re e r w ith th e F irs t N ational B ank of
G ran d F o rk s in 1961, rem ain in g th e re
u n til 1965. P rio r to th a t tim e he
serv ed four y ears w ith th e U. S. A ir
Force.
ÿ * *
A sh o p p e r’s d ream for dow ntow n

St. P aul m oved a step closer to reality
early th is m onth w ith th e announce­
m en t of the beginning of construction
of th e long-planned N orth w estern Su­
perblock.
W o rk on the $4.5 m illion m ulti-level
parking, ped estrian passage, retail
and office stru c tu re is to begin im m e­
diately, Roger G. Kennedy, chairm an
of th e executive com m ittee of th e
N o rth w estern N ational B ank of St.
Paul, said. C om pletion tim e for the
p ro ject is estim ated at 14 m onths.
T he nam e for th e two-block portion
of th e stru ctu re, Northwestern Superblock, is derived from th e fact th a t
N o rth w estern N ational B ank of St.
P au l is both financing th is stru c tu re
and coordinating it a rch itectu rally
w ith th e ir new 15-story, $5.6 -million
h e a d q u arters building on F ifth be­
tw een M innesota and Cedar Streets.

H E M innesota B an k ers A ssocia­
tio n and its 723 m em ber b an k s
have been aw arded th e N ational A gri­
c u ltu ra l A w ard for th e 30th consecu­
tive year, according to an an n o u n ce­
m en t b y th e A m erican B an k ers A sso­
ciation in New York.

T

T he a n n u al aw ard gives special rec­
ognition to th e o u tstan d in g service
w hich th e b an k s of th e sta te and th e
M innesota B an k ers A ssociation have
given th e s ta te ’s ag ricu ltu re, both
th ro u g h educational p ro g ram s for b e t­
te r b a n k in g services and th ro u g h spe­
cial activities in th e a g ric u ltu ra l field.

63

--------------------------------------------.

Your man

At the
American!

DONALD H. JOHNSON
Assistant Vice President

BANKS and BANKERS

To Our Many
Friends in Banking . . .
Best Wishes
for a
Happy Holiday
Season
" The Largest Independent
Full Service Bank
in the Upper Midwest1’

ANYONE CAN PROVIDE DISABILITY AND
HOSPITALIZATION PROTECTION . . . THE TRICK IS:
To Do It Well
To Pay Claims The Day You Get Them
To Keep the Customer Happy!
GIVE US A C H A N C E — READ OUR DIRECT M A ILIN G S
TO BANKERS
M IN N ESO T A C O M M E R C IA L M EN 'S A SSO C IA T IO N
F O U N D E D IN 1905

2550 Pillsbury Ave. S. Mpls. 55404 Ta. 3-7237

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Federal Reserve Bank of St. Louis

AMERICAN
NATIONAL
BANK AND TRUST
COMPANY
S even th and R obert
S aint Paul
222-6666
Member Federal Deposit Insurance
Corporation • Federal Reserve System

N orthw estern Banker, December,

1968

64
brings th e b an k ’s capital stru c tu re to
$600,000, and is the sixth capital in ­
crease since th e b ank w as chartered in
1959.

South Dakota

NEW S
R. F. PETSCHOW
WEIL MILNER

President
Secretary

P rom oted at Hot Springs

Elkton
Huron

Finish Okaton A ddition
The O katon S tate B ank a t Okaton
recently com pleted an addition to its
ban k building and th e rem odeling of
its original q u arters.
The new addition contains space for
custom er ban k in g business, as w ell as
storage and supply room s and kitch en
facilities. The ceiling has been low­

ered in th e older portion of th e build­
ing.

Increase Surplus o f
Siou x Falls Bank
The board of directors of the W est­
e rn B ank in Sioux F alls has an ­
nounced a $50,000 increase in the su r­
plus account of the bank. The increase

Montana

NEW S
J. D. STREET
R. C. W ALLACE

President
Secretary

Bozeman
Helena

M id la n d N a tion a l C osp on sors
Y outh
E con om ic
H E M idland N ational B ank of B ill­
ings w as a sponsor of th e recen t
M idland E m p ire Econom ic Conference
for Young A dults, held on th e cam pus
of E a ste rn M ontana College in B ill­
ings. A lpha P si K appa, a h o n o rary
business fra te rn ity at th e college, co­
sponsored the conference w ith the
bank, w hich w as atten d ed by approxi­

T

ADDRESSING- stu d en ts is M ontana Gov­
ernor Tim Babcock. O thers, from le ft,
are: John E. Tenge, pres., M idland N atl.,
Douglas Hellwig, v.p., F ed eral Reserve,
M inneapolis, and Tom Hagen, m aster of
ceremonies.

Northw estern Banker, December, 1968


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

m ately 200 stu d en ts from so u th ern
M ontana and n o rth e rn W yom ing.
Speakers a t the conference included
George W. O’Connor, p resid en t of
M ontana P ow er Company* B utte, w ho
spoke on “The P o tential for B usiness
E n te rp rise in th e M idland E m p ire”;
Douglas R. Hellweg, vice presid en t of
the F ed eral R eserve Bank, Minne-

T he N ational B ank of South Dakota,
Sioux Falls, has announced the pro­
m otion of LeRoy H ofer to vice p resi­
den t and b ran ch m anager of its H ot
Springs office and A. M. H ill to a ssist­
a n t vice p resid en t and a ssistan t m an ­
ager of th e sam e branch.
Mr. H ofer has been w ith th e bank
for ten years, p rio r to w hich he was
w ith the Onida B ank in his native
Onida.
Mr. H ill began his financial career
in 1958 w ith Securities Acceptance
C orporation. He joined N ational B ank
of South D akota five y ears ago.
apolis, “The Effect of M onetary and
F iscal Policy on Local B usiness,” and
G ranger C ostikyan, p resid en t of F irst
B ank System , M inneapolis, “Is the
B usiness-Job E n v iro n m en t C hanging?”
A fternoon discussion groups consist­
ing of about 20 stu d en ts each m et w ith
the speakers to develop th e lecture
topics fu rth e r.
The in te n t of th e M idland E m pire
Econom ic C o n f e r e n c e for Young
A dults is to provide an in sig h t for
stu d en ts into th e fu tu re of business
en terp rise in th e area and to alert
local businessm en to the fu tu re em ­
ploym ent possibilities of local college
graduates.
The ban k reported th at, “the success
of th is y e a r’s conference assured th a t
a sim ilar conference w ill be planned
for 1969.”

Nam e Banker B illin gs
“ Boss o f the Year"
K enneth B. Jacobson, vice president
of M idland N ational B ank of Billings,
w as nam ed “Boss of th e Y ear” at th is
y e a r’s Boss of the Y ear—D istinguished
Service A w ard B anquet sponsored by
B illings Jaycees.
As the b a n k ’s chief officer respon­
sible for ad m inistration, Mr. Jacobson
has recognized
the Jaycee organ­
iz ation for its
leadership tra in ­
in g b e n e f i t s
t h r o u g h com m u­
n ity developm ent.
T his y ear 12 of
th e b a n k ’s 129
employees a re
Jaycee m em bers,
including th e im ­
K. B . J A C O B S O N
m ediate p ast p res­
ident, one d irector and several comm ittee chairm en.

65

------------------------------------------------------------------ \

W yom ing News
M AX E. FISHER
Laramie
President
Wyoming Bankers Assn.

Awards 4-H Trips
R. D. Saunders, p re sid e n t of th e
F irs t N ational B ank of G illette, re ­
cently atten d ed th e a n n u al 4-H L ead­
ers B an q u et and aw arded tw o trip s to
th e D enver Stock Show in J a n u a ry to
tw o 4-H leaders.

D isplays Student Art
T he Stock G row ers B an k of W heatland is displaying th e w o rk s of first
and second-year a rt stu d e n ts from
W h eatlan d H igh School in its b ank
lobby. A pproxim ately 60 sketches and
draw in g s are included in th e display.

W orland Bank H olds O pen
H ou se A fter R em odeling
T he F irs t N ational B ank of W orland
m ark ed th e com pletion of its extensive
rem odeling p ro ject w ith an open house
last m onth. P rizes w ere aw arded to
those atte n d in g th e event.
The rem odeling, begun in Ja n u a ry ,
1968, included a re a rra n g e m e n t of th e
b a n k ’s facilities and carpeting, air
conditioning and re fu rn ish in g of th e
interio r. A stone fireplace in th e new
lobby is also featured. A new vault,
b u rg la r alarm system , n ig h t deposi­
tory, drive-up w indow and teller equip­
m ent w ere added to th e bank. The
exterio r of th e b uilding w as also
refinished.

WBA P resid en t to
State Bond C om m ittee
A. E d w ard Kendig, p resid en t of th e
F irs t N ational B ank in W heatland,
and v o lu n teer state ch airm an for th e
U. S. T re a su ry ’s Savings Bond p ro ­
gram , has appointed M ax E. F ish er,
p resid en t of th e F irs t N ational B ank
of L aram ie and p re sid e n t of the
W yom ing B an k ers A ssociation, as a
m em ber of th e W yom ing Savings
Bond C om m ittee. The A m erican B an k ­
ers A ssociation recen tly reappointed
Mr. F ish e r as ABA sta te coordinator
for savings bonds.

P rom otion s at First
O f C heyenne
A u b u rn W. Dowdy and B ern ard R.
W eber, both vice p resid en ts and tru s t
officers of th e F irs t N ational B ank and
T ru st Com pany of W yom ing in Chey­

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Federal Reserve Bank of St. Louis

Your man
At the
Am erican!

enne, have been elected to th e b a n k ’s
board of directors.
Mr. Dowdy joined th e b an k in 1953
and is a g raduate of the Stonier
G raduate School of B anking. He also
serves as an in stru c to r for th e A m eri­
can In stitu te of B anking.
Mr. W eber began w ith the b ank in
1946. He is a grad u ate of th e Colorado
School of B anking and holds an A.T.B.
certificate.

O. E. B ertagnolli
O. E. B ertagnolli, 68, p resid en t of
th e b o ard of directors and vice p resi­
d e n t of N orth Side S tate Bank, Rock
Springs, died recently at Holy Cross
H ospital, Salt Lake City, U tah.
Mr. B ertagnolli began his ban k in g
career at the B ank of H udson in 1915.
He later joined the W yom ing Board
of B ank E xam iners, com ing to th e
N o rth Side State B ank 35 y ears ago as
m anager.

Installs T im e-T em p Sign
As a p a rt of its fifth b irth d a y cele­
b ratio n in Powell, th e A m erican N a­
tio n al B ank is in stallin g a new tim e
and te m p eratu re sign on th e co rn er of
th e b a n k ’s Second and A bsaroka loca­
tion.

R eport Bank Loans to
W yom ing R anchers
W yom ing banks provided ran ch ers
w ith m ore credit and o ther financial
services th a n any o ther lenders this
year, according to Jo h n McNellis,
p resid en t of th e Saratoga State Bank.
Based on th e 27th an n u al farm lend­
ing su m m ary of the A m erican B ank­
ers A ssociation A g ricultural Com m it­
tee, Mr. McNellis rep o rted th at, at the
beginning of th e year, W yom ing banks
w ere helping ran ch ers w ith $91 m illion
in loans, 15 per cent m ore th an a year
previously. This total includes $83
m illion in production loans and $8 m il­
lion in farm m ortgages. At th e sam e
tim e, all o th er types of lending in stitu ­
tions, such as life in su ran ce com­
panies, F ed eral L and banks, produc­
tion credit a s s o c i a t i o n s and the
F a rm e rs H om e A dm inistration, held a
com bined to tal of $146 m illion in loans
to W yom ing ran chers. A bout 76 per
cent of th e production credit extended

ARTH U R I. N ELSO N
Correspondent Banking Officer

BANKS and BANKERS

To Our Many
Friends in Banking . . .
Best Wishes
for a
Happy Holiday
Season
“ T he L a rg e s t In d e p e n d e n t
F u ll S e rv ic e B a n k
in th e U p p e r M id w e s t ' '

AMERICAN
NATIONAL
BANK AND TRUST
COMPANY
S even th and R ob ert
S aint Paul
2 2 2 -6 6 6 6

Member Federal Deposit Insurance
Corporation • Federal Reserve System

N o rth w e s te rn

B anker,

D ecem ber,

1968

66
by lending in stitu tio n s to W yom ing
ran ch ers cam e from banks.
Mr. McNellis said th a t, “b an k ers in
W yom ing are conscious of th e large
capital in v estm en ts req u ired in ag ri­
cu ltu re today and are m aking a con­
certed effort th ro u g h im proved lending
program s to m eet these changing
credit dem ands of th e s ta te ’s farm ers

and ra n c h ers.”
Mr. McNellis stressed the im portance
of ra n c h e rs and b an k ers w o rk in g to ­
g eth er to im prove farm financial a r­
ran g em en ts. He rep o rted th a t nine
out of 10 banks th ro u g h o u t th e coun­
tr y had a g ricu ltu ral loans o u tstan d ­
ing, w ith all banks in W yom ing ex­
tending credit to ran ch people.

SK ET C H of new building being constructed by The F ir s t N atio n al B ank of Sheridan.

C on stru ct C on tein poru rif
Mtanh
in Sheridan
H E F irs t N ational B ank of S heri­
dan began co n structio n D ecem ber
1 on a new , larg er building at th e site
it now occupies at 2 N o rth Main

T

S treet. Special staged construction
techniques w ill p erm it u n in te rru p te d
custom er service th ro u g h o u t th e build­
ing period.

North Dakota

NEW S
E. L. OLSON
W. J. DANER

President
Secretary

Grand Forks
Bismarck

Fargo Man N am ed to T erm
On ABA Ag C om m ittee
Thom as H. B artholom ay, vice p resi­
d en t of M erchants N ational B ank and
T ru st Com pany of Fargo, h as been
appointed to serve a th ree-year te rm
on th e A g ricu ltu ral C om m ittee of th e
A m erican B an k ers Association.
The com m ittee is com posed of 14
m em bers, and seeks to lead th e n a ­
tio n ’s b an k ers in keeping ab re a st w ith
changes in th e ag ricu ltu ral econom y
and in estab lish in g p rogram s w ith in
the association to m eet th e credit
needs of ag ricu ltu re th ro u g h o u t the
country.
Mr. B artholom ay has been active in
th e N o rth D akota B an k ers A ssociation
and h e h as served as p resid en t of th e
U pper M idw est A g ricu ltu ral Credit
N o rth w estern

B anker,

D ecem ber,


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

1968

Conference, w hose m em bership is
p rim a rily ag ricu ltu ral ban k ers of the
N in th F ed eral R eserve D istrict. Mr.
B atholom ay has been w ith M erchants
N ational since 1954.

Okay Portland Increase
The application of The F irs t and
F a rm e rs B ank of P o rtlan d to increase
its capital stock from $70,000 to $105,000 w as recen tly approved by the
N o rth D akota S tate E xam iner. The
increase w as accom plished by m eans
of a stock dividend. The F irs t and
F a rm e rs B ank m oved into new q u a r­
te rs last m onth.

B o f M E arnings Up 3 0 %
An increase of 30 per cent in B ank
of M ontreal n et op eratin g earnings

C. G. R alston, president, em phasized
th a t the b a n k ’s decision to build new
q u arters is th e culm ination of studies
and planning in itiated in 1964 u n d er
D. C. M eyer, p resen tly board ch air­
m an, and L. N. Davis, the late p resi­
den t of th e bank.
The new b a n k ’s arch itectu re w ill
em ploy a contem porary motif, w ith
an ex terio r of fieldstone, brick, solar
bronze glass, anodized alum inum and
contem porary lig h tin g fixtures.
The carpeted lobby w ill include a
floor-to-ceiling stone fireplace w ith a
copper hood and surro u n d ed by lounge
chairs. E leven teller counters w ith
han d crafted wood cabinets w ill be
featu red on the b an king floor. O ther
ground floor facilities w ill include
th ree conference room s and a direc­
to r’s room.
T he b an k w ill also have a 2,000
square-foot m ezzanine floor, w hich w ill
house a large em ployee lounge and
k itchenette.
The b ank w ill also have th ree new
drive-up w indow s, a n ig h t depository
and a p ark in g area w ith access to th e
lobby.
P lan n in g and general co n tracting for
th e p roject is being conducted by B ank
B uilding and E q u ip m en t C orporation
of St. Louis, Mo. Com pletion of the
building is slated for Septem ber, 1969,
although the ban k anticipates opening
the new drive-up facilities in Jan u ary .

<

V

r

^L.

>

\

highlights th e b a n k ’s 151st an n u al
statem ent, for th e fiscal y ear ended
October 31. New h igh records w ere
also set in assets, loans and deposits.
“Balance of revenue, com m only called
n e t op eratin g earnings, am ounted to
a record $67,699,427, an increase of
$15,760,453 over 1967. Viewed by m any
financial analy sts as th e b est m easure
of th e effectiveness of th e b a n k ’s p e r­
form ance, th ese earnings w ere 30.3
p er cent over 1967 and rep resen ted
$2.23 per share com pared w ith $1.71
p er sh are last year.
B of M assets reached $6,818 m illion,
w ith an increase of $732 m illion, or
11.2 per cent, over 1967.
Loans o u tstan d in g w ere $4,097 m il­
lion, u p $268 m illion, or 7 p er cent,
from a y ear ago, w hile deposits rose
$621 m illion, or 11.1 p er cent, to $6,230
m illion.

H eads Savings Bonds
Campaign
W illiam H. Moore, ch airm an of
B ankers T ru st Com pany, New York,
has been appointed b an k in g in d u stry
ch airm an of th e 1969 U. S. Savings
Bond Cam paign, it w as announced by
S ecretary of th e T reasury, H en ry H.
Fow ler.
C '

>

67

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M osler
1

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

N o rth w e s te rn

B anker,

D ecem ber,

1968

68

Colorado

News
D. E. SC O T T
President

Colorado Bankers Association
Steamboat Springs

On the Cover
C olorado State Bank
To Build Skyscraper
D isclosure of plans for a 26-story,
$18 m illion office building on the n o rth ­
east co rn er of 16th and B roadw ay w as
m ade last m o n th by Elw ood M. Kullgren, p re sid e n t of The Colorado State
Bank. The b a n k ’s new hom e w ill be
across th e stre e t from th e M ajestic
B uilding, w h ere th e b an k has been
located since opening its doors in
October, 1908.
The new office b uilding w ill be a
jo in t project b etw een The Colorado
S tate B ank and an in v estm en t group
headed by K eith L. B row n, D enver
atto rn ey . The stru c tu re , to be know n
as The Colorado State B an k B uilding,
w ill offer over 400,000 square feet of
lease office space, and Mr. B row n re ­
vealed app ro x im ately one-third of the
available space has now been leased.
A ctual ow ner of th e p ro ject w ill be
T he Colorado S tate B an k B uilding,
Ltd., a Colorado lim ited co-partner­
ship, of w hich Mr. B row n is th e gen­
eral p artn e r.
The Colorado S tate B ank w ill occupy
th e first th re e floors of th e building,
w hich has been in th e p lan n in g stage
for about tw o years. I t is a jo in t
arch ite c tu ra l p ro ject of Rogers-NagelL an g h art of D enver and H arw ood K.
S m ith & P a rtn e rs of Dallas. RogersN agel-L anghart w ill also serv e as
arch itects for th e b a n k ’s in terio r. The
D enver firm of K etchum , Konkel,
R yan and H astin g s w ill be th e stru c ­
tu ra l engineers.
The building h as been designed to
utilize th e e n tire 300 by 125-foot site
as a broad open plaza w h en view ed
from ped estrian level. L andscaping
has been planned to com plem ent th e
developm ent of U nited N ations Plaza
adjacen t to th e property.
The b uilding to w er w ill be fram ed in
reinforced fireproof concrete w ith all
exposed elem ents covered in p recast
panels, sand-blasted to express a w arm
tone aggregate surface. T he building
w ill featu re use of solar bronze, glarereducing polished plate glass.
A row of drive-in b a n k in g statio n s
and an arm ored car d elivery en tran ce
N o rth w e s te rn

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1968

a t ground-floor plaza level w ill be pro­
vided. Access to drive-in b anking and
u n d erg ro u n d p ark in g w ill be from 16th
A venue, w ith exit on B roadw ay.
C orridor floors in th e tow er w ill be
carpeted to com plem ent w alls covered
in vin y l fabric. Polished Venetian
aggregate terrazzo on th e m ain lobby
floor w ill be accented by w alls of
bronze glass and Italian trav ertin e.
T hree elevators w ill serve th e ban k
exclusively.
T en o th er high-speed
elevators w ill provide tran sp o rtatio n
from p a rk in g areas to th e 23 levels of
office space above the b anking q u ar­
ters.

T hree D enver Banks W ill
Offer Master Charge
T h ree of D enver’s larg est banks,
w ith com bined assets over $1 billion,
have announced th a t th ey w ill p a r­
ticipate join tly in estab lish m en t of
M aster C harge credit cards in th e Den­
v er region.
P a rtic ip atin g are th e A m erican N a­
tional Bank, D enver U. S. N ational
B ank and The F irs t N ational B ank of
D enver. The th ree w ill form M ountain

P R E S ID E N T S of th ree of D enver’s la rg ­
est banks, w ith a ta p e s try sym bolic of the
B ay A rea, disclosed jo in t p a rtic ip a tio n in
th e M aster Charge c red it card plan, which
has h e a d q u arters in San F rancisco. From
le ft, J . E. M ontague of the A m erican N a ­
tio n al B ank, E ugene H. A dam s of The
F ir s t N atio n al B ank of D enver, and N eil
F. R oberts of th e D enver U. S. N atio n al
B ank.

States B ankcard A ssociation to func­
tion as a cen tral agency for M aster
Charge.

The a n n o u n c e m e n t came from
A m erican N ational P resid en t J. E.
M ontague, D enver U. S. P resid en t Neil
F. R oberts and F irs t N ational P resi­
d en t E ugene H. Adams.
The program is expected to be in
full operation by m id-sum m er. The
founding banks w ill open m em bership
in th e association to o ther banks in
the R ocky M ountain area, and they
anticipate th a t a larg er nu m b er of
them w ill be p articip atin g by th e tim e
M aster C harge is offered.
In a jo in t statem ent, th e presidents
of th re e banks said: “The effectiveness
of a credit card is determ ined by how
w ell it m eets th e needs of to day’s con­
sum ers and m erchants, by how w ide­
spread its acceptance is locally, region­
ally and n a t i o n a l l y , and by the
sim plicity involved in its use.
“T he v e r s a t i l i t y of th e M aster
C harge concept, w e feel, uniquely
serves th e needs of m etropolitan Den­
v er and th e R ocky M ountain area
th ro u g h its nationw ide acceptance, and
we feel its inception th ro u g h our three
banks w ill have a m ost favorable
economic im pact.”
T he th ree banks w ill p articip ate in
a com bined prom otional program on
behalf of M aster Charge, b u t w ill sign
custom ers individually for th e ir re ­
spective in stitu tio n s. The in troduc­
tion of M aster C harge into Colorado
and W yom ing w ill m ake th em th e 27th
and 28th states in w hich th e card is
used.

-A

V

v~

O utlines Investm ent Plan
For State Funds
M rs. V irginia Neal Blue, Colorado
state tre a su re r, announced a unique
certificate of deposit program to the
second an n u al Sem inar on Inv estm en t
of Public F u n d s in D enver last m onth.
E m phasizing th a t th e program is
designed to keep m ore of th e sta te ’s
m oney in Colorado, she said, “a por­
tion of th e am ounts available to the
tre a su re r w ill be allocated for bid to
Colorado com m ercial ban k s for cer­
tain specific periods n ot to exceed
tw elve m onths. A m inim um certificate
of deposit of $1 m illion w ill be re ­
quired, and th e tre a su re r reserv es the
rig h t to reject any and all bids.”
Mrs. Blue later explained th a t this
is th e first tim e any state has taken
com petitive bids on its m oney from
com m ercial banks w ith o u t lim iting the
use to w hich th e banks m ay p u t th a t
money.
To handle th e p rogram Mrs. Blue
has nam ed Mrs. M arguerite L arsen to
the new post of in v estm en t officer of
th e state tre a su ry d ep artm en t. Mrs.
L arsen, c u rre n tly an account execu­
tive w ith B osw orth, Sullivan & Co.,
also w ill service th e securities held by

V

K

<

f

69

S E A S O N S G R E E T IN G S
fro m J o a n n e F a n n e r ,
G e o r g e A lff, T e rr y R y a n , P a u l C h r is te n s e n , K e n t O lin , D o n F erret
a n d a lt t h e f o l k s a t D e n v e r U .S .

' that's the h an k for m y m o n e y l"

DENVER U.S.
N A T I O N A L

B A N K

D E N V E R U . S . C E N T E R D e n v e r , C o lo r a d o 8 0 2 1 7

N o rth w e s te rn


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Federal Reserve Bank of St. Louis

Banker,

D ecem ber,

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^0

Colorado News

The bond and securities division for
th e accounts of v arious state agencies.
In explaining th e reasons for th e
hew program , Mrs. Blue said, w hile
she w as pleased w ith th e yield on th e
tj. S. g o v ern m en t securities in h e r de­
p a rtm e n t’s portfolio, she w ould “p re ­
fe r to keep m ore m oney in th e state.”
She added th a t th e state tre a s u ry ex­
pects to m ain tain its basic certificate
of deposit p rogram so state funds
Would continue to get equitable dis­
trib u tio n in Colorado banks.
A pproxim ately 350 b ankers, savings
and loan officials, county treasu rers:

and school board m em bers attended
th e sem inar at D enver’s B row n Palace
Hotel.

Jo sep h M aitin has been elected p resi­
d en t of th e F irs t B oulder V alley B ank
in Boulder. He w as form erly vice
p resid en t and cashier of th e bank.
Mr. M aitin, a form er educator, is a
d irecto r of th e F irs t M adison V alley
B ank of E n n is and an organizer of
th e F irs t B oulder V alley Bank.
L. L au rel McAtee w as prom oted
3m a ssistan t cashier to cashier of

*TH E HU M AN
ELEM EN T
Computers, data
processors and other
electronic methods of
filling your correspondent
bank needs make life
much simpler and more
efficient.
But machines without
people are still just
machines. It's the people
of The First's
Correspondent Bank
Department who supply
the knowledge,
perception and total
service which make the
computers so effective.
They were doing it a long
time before computers.
They're doing it even
better with computers.

The First National Bank
of Denver uthandW
e/ton 266-22n
•

The bank th a t n e ve r le ts you d o w n !
N o rth w e s tern

B anker,

D ecem ber,

1968

ban k in g

George A. Johnson D ies
To Head B oulder Bank

THE MOST IMPORTANT
*ri "MENTIS MISSING
FROMTHESE
PICTURES


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Federal Reserve Bank of St. Louis

the bank. He began his
career in B oulder last year.

||||i

George A. Johnson, 63, v a u lt au d ito r
a t The F irs t N ational B ank of D enver,
died unexpectedly last m onth. He had
been in the b anking business 40 years.

D enver Man N am ed to
ABA Trust P osition
R ichard P. B row n, senior vice p resi­
d en t and executive tru s t officer of The
F irs t N ational B ank of D enver, has
been elected ch airm an of th e execu­
tive com m ittee of th e A m erican B ank­
ers A ssociation’s T ru st Division. In
the past, th e m an holding this position
has succeeded to th e presidency of th e
T ru st D ivision in tw o years.
Mr. B row n w as also nam ed a m em ­
ber of th e A ssociation of R eserve City
B ankers. He succeeds Sidney L.
Brock, Jr., form er F irs t N ational sen­
ior vice presid en t w ho retired in A pril
of th is year.
Mr. B row n has been w ith F irs t N a­
tio n al’s tru s t d ep artm en t since 1940.
He received his law degree from th e
U n iversity of Denver.

C ourtney R etires From
First o f D enver
A b an king career spanning m ore
th a n half a cen tu ry came to a close
w ith the re tire m e n t last m onth of
J u s t i n P. “P a t”
C o u r tn e y , v ic e
p resid en t of The
F ir s t N a tio n a l
B ank of Denver.
M r. C o u r t n e y
joined th e F irs t
N ational in 1919
as a m essenger in
th e collection de­
p artm en t, w hich
he later m anaged.
P rio r to th at, he
had w orked for one and one-half years
a t th e form er K ansas N ational B ank
in W ichita, Kan.
H e also w orked in the credit divi­
sion and com m ercial loan and real
estate d e p a r t m e n t s , before being
chosen as one of th e tw o original staff
m em bers of th e b a n k ’s installm en t
loan d ep artm en t, organized in 1939.
Mr. C ourtney says th at, since th a t
tim e, he has “loaned m illions of the
b a n k ’s dollars, m ade th o u san d s of
friends and w itnessed terrific changes”
in th e in stallm en t loan business.
These changes include grow th of the
F ir s t’s in stallm en t loan d ep artm en t
from a staff of tw o to a staff of 14,
and, of course, th e m ovem ent am ong
b an k ers to a less skeptical attitu d e
concerning in stallm en t lending.


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Federal Reserve Bank of St. Louis

72
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o p p o r t u n it y

jo y s
to

of

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th a n k s

is
to

o u r o ld a n d n e w f r ie n d s fo r th e ir lo y a l t y
a n d g o o d w ill. W e s in c e r e ly h o p e t h a t
w e w ill h a v e t h e o p p o r t u n it y to e x t e n d
o u r h e lp t o w a r d m a k in g t h e y e a r a h e a d
a m o st

su ccessfu l an d

p rosp erou s

one

fo r y o u .

Season s Greetings

Y

from

Y

EDWARD W. LYMAN

JAY BORDEWICK

HOWARD NIELSEN

EVERETT BROWN

JESS ZIMMERMAN

President

Vice President

Assistant Vice President

Assistant Cashier

Assistant Cashier

MEMBER F.D.I.C.

and all your other friends at
The United States National Bank
N o rth w e s tern

B anker,

D ecem ber,


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Federal Reserve Bank of St. Louis

1968

f

73

eral im practicability of tra n sfe rrin g a
farm in sm all units.
W ith th e use of slide projected
charts, Mr. K east illu strated several
m ethods by w hich tax problem s can
be approached u sin g th e guidelines es­
tablished by F ed eral tax law and
court rulings.

Nebraska

NEW S
H. GRAM ANN, JR.

President

Adams

W. H. OSTERBERG

Exec. Mgr.

Omaha

F a rm P r o b le m s A n a ly z e d a t
JXebraska K a n k ers A y S em in ars
300 b a n k e r s ,
co u n ty agents and vocational ag­
ric u ltu re teach ers atten d ed th e A gri­
c u ltu ra l S em inars s p o n s o r e d last
m o n th by th e N ebraska B an k ers A sso­
ciation in N o rth P la tte and Lincoln.
T he m eetings w ere offered in cooper­
ation w ith th e N ebraska d e p a rtm e n t
of education’s vocational division and
th e U n iv ersity of N ebraska coopera­
tive ex tension service. T he sam e pro­
g ram w as p resen ted at b o th m eetings,
w hich w ere held on consecutive days.
T he m o rn in g p ro g ram w as staged
e n tire ly by six ag p rofessors from th e
U n iv ersity w ho discussed “The C hang­
ing Scene of A g ric u ltu re ” in th e ir
panel. P a rtic ip a n ts w ere Dr. Mike
T u rn e r, Dr. Abe Epp, Jam es D. G reer,
Dr. Jim K endrick, Dr. P h il H enderson
an d Dr. Glen Vollm ar.
T he a f t e r n o o n session featu red
th re e speakers:
Jam es K east, general counsel for
Doane A g ricu ltu ral Service, Inc., St.
Louis.
W illiam O. K urtz, Jr., senior vice
presiden t, A m erican N ational B ank &
T ru s t Com pany, Chicago.

A

p p r o x im a t e l y

T heodore D. B row n, president, The
S ecurity S tate B ank, Sterling, Colo.
Tax and Estate Problems
Mr. K east addressed him self to th e
su b ject of “T ax and E state Problem s
for th e F am ily F a rm .” He said th e
large capital in v en to ry in th e m odern,
w ell-m anaged farm is th e basis for th e
need of professional estate planning.
He divided th e talk into th ree m ain
p a rts—d eterm in in g w h a t needs to be
done w ith th e estate or settin g the
goals; th e fram ew ork of th e problem ,
and F ed eral estate taxes.
W ith in th e fram ew ork of the prob­
lem in estate planning, Mr. K east
noted th a t th e v ery n a tu re of th e fam ­
ily farm p resen ts a challenge to th e
estate p lan n er because it is freq u en tly
a large, com m ercial en terp rise, it has
significant capital inventory, and of­
ten it is an en terp rise founded in a
gen eration p ast and is intended to
continue to fu tu re generations. In
th is regard, he said th e freq u en t dif­
ficulties in tra n sfe r revolve around a
low ta x basis w hich w ould basically
in cu r large capital gains, and th e gen­

The Banker’s Role
Mr. K u rtz ’s ta lk on “F in an cin g AgriB usiness” dealt w ith the position of
b an k lenders in th e a g ricu ltu ral financ­
ing m arket.
Mr. K urtz w as accom panied to th e
Sem inar by W illiam B. A ldrich, as­
sistan t vice presid en t of A m erican Na­
tional, and George H. Spence, ag rep ­
resentative.
In his talk, Mr. K urtz stressed th e
follow ing points:
F arm s are disappearing a t th e ra te
of 100,000 p er year. T here are few er
farm s now th a n a t any tim e since
1870. W e have 56 p er cent of th e
farm s we had in 1955, and since 1960,
farm s have decreased by 20 p er cent.
F arm s of $40,000 gross incom e or
m ore re p re se n t 6 per c e n t of the
farm s b u t 47 p er cen t of farm income.
Total farm debt is up, and w ith few er
farm s th e debt p er farm has increased
dram atically. In addition, capital in ­
v en to ry for m achinery and operating
expenses has gone w ay up. A big por­
tion of these cost and incom e dollars
are due to inflation.
An exam ination of all these figures
and tren d s brings us to one definite
conclusion — farm in g is no longer a
w ay of life—it’s Agri-Business.
In view of th is we note an alarm ing
fact — banks are not h an dling farm
debt in the g reatest am ount any m ore.
W e used to handle 76 p er cent of th e
AG SEMINARS . . .
(T u rn to page 80, please)

L E F T — Frank J. Sibert, v.p., S tockyards N atl., O m aha; Wm. O. Kurtz, sr. v.p., and George H. Spence, ag officer, both w ith A m er­
ican N atl. B&T, Chicago, and Winton Buckley, N atio n al B ank of Commerce, Lincoln. Mr. K u rtz w as a prin cip al speaker a t the N e­
b rask a B ankers A ssociation’s A g ricu ltu ra l Sem inars in N o rth P la tte an d Lincoln. Mr. S ib e rt and Mr. B uckley rep resen t O maha and
L incoln on th e NBA Com m ittee on A gricu ltu re. R IG H T — James Keast, genl. counsel, Doane A g ricu ltu ra l Service, Inc., St. Louis, and
Theodore D. Brown, pres., S ecu rity S ta te B ank, S terlin g , Colo., w ere the oth er two speakers on the aftern o o n p o rtio n of the program .

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Federal Reserve Bank of St. Louis

N o rth w estern

B anker,

D ecem b er,

1968

74

li m a Ita N e w s [

ICHAEL E. MASILKO, vice p res­
id en t of th e F irs t N ational B ank
of Omaha, has been prom oted to vice
presid en t and cashier. In his new po­
sition he succeeds Arthur J. Menzies,
w ho is re tirin g th is m o n th as vice
p resid en t and cashier a fte r 45 y ears of
service w ith th e bank. Mr. M asilko
joined F irs t N ational in M arch, 1950.

M

M . E . M A S IL K O

A . J. M E N Z I E S

He g rad u ated from B enson H igh
School in Om aha and atten d ed the
G raduate School of B an k in g at the
U n iversity of W isconsin in Madison.
He has been actively involved in b an k
operations since joining th e bank.
Mr. M asilko recen tly com pleted a

W . J. H E N R Y

C. P . C L A N C Y

course in O rganization M anagem ent
and Control, sponsored by th e A m eri­
can M anagem ent A ssociation a t the
C anadian M a n a g e m e n t C enter in
M ontreal.
O ther prom otions announced by the
executive com m ittee are:
J. William Henry from m ark etin g
officer to second vice presid en t and
m an ag er of th e F irs t Charge-BankA m ericard division.
Charles P. Clancy to operations offi­
cer and m anager of th e credit d e p a rt­
m ent.
Glenn Magnuson and Dudley J. Mc­
Grath to operations officers.
Alvin C. Drouillard, Herman L. Ja­
cobs, Donald M. Miller and Dillon Ross
to m a rk etin g officers.
Two m en w ith 46 y ears of service
each also have re tire d from F irs t N a­
tio n al B ank. T hey are Charles Fuxa,
custom er service, and Roy Edwards,
m aster teller.
Mr. H en ry w as grad u ated from the
U n iv ersity of N ebraska w ith a B.S.
degree in 1964 and joined th e b ank
follow ing graduation. Follow ing com­

G.

M A G N U SO N

D . J. M cG R A T H

pletion of a tra in in g course h e w as
^
assigned to th e credit card division.
Mr. C la n c y attended Boyles-Van
Sant B usiness College in Omaha.
Since jo in in g F irs t N ational he has
been in th e discount and com m ercial
^
credit d epartm ents. He is a m em ber
of th e N ational A ssociation of C redit
M anagem ent.
Mr. M agnuson is a 1960 g raduate of V<
the U n iv ersity of Omaha w h ere he
earned a B.S. degree. He also atten d ed
advanced s p e c i a l i z e d program m ing
schools w hile w o rking w ith th e N a­
tional Cash R egister Company. H e ^
left th e division office in Chicago to
join F irs t N ational and is supervisor
of th e b a n k ’s data processing p ro ­
gram m ing division.
Mr. M cG rath attended M orningside
College in Sioux City. He is a mem­
ber of th e N ational A ssociation of
B ank A uditors and C om ptrollers and
has ta u g h t P rinciples of B ank Opera- -L
tions in th e A.I.B. program . He
served as cashier of th e F irs t N ation­
al B ank in Sioux City, Iowa, before
m oving to F irs t N ational of O m aha
Y
Septem ber 1, 1968.
Mr. D rouillard cam e w ith F irs t N a­
tional Ja n u a ry 15, 1953, after a tte n d ­
ing L aw rence In stitu te of Technology
and W ayne U n iversity of D etroit,
Mich.
Mr. Jacobs is assigned to th e corre­
spondent b a n k division. He attended
Iow a S tate T eachers College and Cali­
fornia State P olytechnical College at
San L uis Obispo, Calif. H e served
four y ears in th e Navy, th e n joined
the B ank of C alifornia in San F ra n ­
cisco in 1956. He w as later associ­
ated w ith The State B ank of F o rt
Dodge, Iowa, before joining F irs t N a­
tional of Omaha.
Mr. M iller also is w ith th e corre­
spondent b an k division. He received
his B.S. degree from W estern R eserve
U n iversity in Cleveland, Ohio, in 1955.
Before m oving to F irs t N ational B ank
of O m aha he w orked for A m erican
A ir Lines, E. I. du P o n t and R oberts
Dairy.
Mr. Ross w as grad u ated from N orth- -v
w estern U n iv ersity in 1955 w ith a B.S.
degree. He served in th e N avy for
th re e and one-half y ears an d w orked
for several y ears in th e lum ber busi­
ness in Idaho, W yom ing, Colorado ^
and K ansas. H e joined th e b an k in
Ja n u a ry , 1967, and is in charge of the
agent b an k pro g ram for th e BankA m ericard division.
*"
*

A . C. D R O U I L L A R D

H . L. J A C O B S

N o rth w e s te rn B anker, D eeem ber,

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Federal Reserve Bank of St. Louis

1968

D . M . M IL L E R

D. R O SS

*

*

A t th e an n u al m eeting of th e board
of directors of Chiles and Company,
O m aha-based in v estm en t b a n k in g firm,
Donald L. Anderson w as elected president, succeeding Warren D. Chiles,
w ho h as m oved u p to ch airm an of th e

S

T h e O m a h a N a tio n a l B a n k
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION


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N o rth w estern

B anker,

December,

1968

76

Nebraska News

C reighton U n iversity w ith a degree in
finance. He joined Chiles and Com­
p any in 1962 as a reg istered re p re se n t­
ative. He is c u rre n tly enrolled in th e
In stitu te of In v e stm e n t B anking at
th e W h arto n School of Finance.
Chiles and Com pany has additional
offices in Lincoln and L exington, Neb.,
and in V erm illion, S. D.
*
D. L. A N D E R SO N

J. P. K I N E E N

board. E lected vice p resid en t w as
James P. Kineen.
Mr. Chiles founded th e firm in 1947,
after serv in g as a reg istered re p re ­
sen tativ e w ith an o th e r O m aha in v e st­
m en t firm.
Mr. A nderson, a g rad u ate of th e
U n iv ersity of N ebraska and th e In s ti­
tu te of In v e stm e n t B an k in g a t th e
U n iversity of P e n n sy lv a n ia ’s W h a r­
ton School of F inance, joined Chiles
and Com pany as a reg istered re p re ­
sentativ e in 1956 and w as elected a
vice p resid en t and directo r in 1962.
He is a p a st se cretary of th e OmahaLineoln Society of F in an cial A nalysts;
a m em ber of th e executive com m ittee,
th e board of directors, and a second
vice p resid en t of th e N ebraska In v e st­
m en t B an k ers A ssociation, and has
served on a n u m b er of com m ittees of
th e C entral States In v e stm e n t B ank­
ers A ssociation. He w as also active in
th e Om aha J u n io r C ham ber of Com­
m erce and served as b oth a d irector
and vice president.
Mr. K ineen, a n ativ e of R apid City,
S. D., a tten d ed th e N otre Dame U ni­
v ersity and w as g rad u ated from The

*

*

Morris F. Miller, p resid en t of The
Om aha N ational B ank, has nam ed Sec­
ond Vice P resid en t Holland M. Brem­
ers as special a ssistan t to David R.
Ells, w ho is th e division head of data
processing. Mr. B rem ers w ill be in
charge of special projects, th e first
being a b an k m anagem ent system .
In addition, Mr. M iller has an ­
nounced th e ap p o in tm en t of Emil L.
Yost, data processing officer, as m an ­
ager of th e system s and program m ing
d ep artm en t of th e data processing di­
vision.
Mr. Yost has been a p roject m an ­
ager w ith System D evelopm ent Cor­
poration, Santa Monica, Calif., and
joined The Om aha N ational B ank on
D ecem ber 9. He has been w ith SDC
for 11 years, beginning as a p ro g ram ­
m er and m ost recen tly m anaging
large scale real-tim e data processing
system s.
Mr. and Mrs. Yost both are natives
of H astings, Neb., w h ere Mr. Yost re ­
ceived his degree in m athem atics in
1956 from H astings College.
Mr. M iller also has announced the
ap p o in tm ent of John F. Wear and
James J. Sullivan as a ssista n t data
processing officers. Mr. W ear is a
n a t i v e of P ortsm outh, Iowa, and

joined the b an k in 1961. Mr. Sullivan
has m oved from Gary, Ind., w h ere he
w as presid en t of D ata P rocessing
Service Center.
*

*

Orders Executed on All Principal Exchanges

0

MEMBER, MIDWEST STOCK EXCHANGE

*

*

*

*

John R. Lauritzen, p resident of th e
F irs t N ational B ank and chairm an of
th e U nited A ppeals Cam paign, re ­
ported last m onth com pletion of th e
fund-raising drive. The goal of $3,009,388 w as th e larg est in Omaha
history. It provides funds for m ore
th a n 50 C om m unity C hest Agencies in
the Omaha area.
*

*

Morris F. Miller, presid en t of The
Om aha N ational Bank, announced th a t
directors have declared a special divi­
dend of 25 cents per share, payable
D ecem ber 14, to sharehold ers of record
N ovem ber 29. T his is in addition to
th e 35 cents per share dividend payable th e sam e date. The board antici­
pates an an n u al dividend ra te of $1.60
p er share, payable quarterly , for 1969,
if earnings perm it.
*

( IIIL i; S A ( >Il»AYl

*

State Senator John Knight, Lincoln,
has been elected p resid en t of Packers
N ational B ank in Omaha. He sue- L
ceeds Tim J. Spencer, w ho now be­
comes ch airm an of th e board. Sena­
to r K night has no plans to move to
Om aha since such a move w ould n e­
cessitate giving up his seat in th e state
legislature, w h ere he rep resen ts th e
26th Legislative D istrict in Lincoln.
He is presid en t and m anager of GatesK night In su ran ce Agency in Lincoln.

*

MUNICIPAL AND CORPORATE BONDS
LISTED STOCKS
UNLISTED AND LOCAL STOCKS

*

Donald J. Wagner, Jr., and James
Warren have been nam ed account ex­
ecutives at F irs t Mid Am erica, Inc.
The an n ouncem ent w as made a t th e
Om aha office of th e N ebraska in v est­
m en t firm by Charles F. Heider, exec­
utive vice p resident of th e firm. F irs t
Mid A m erica is th e new nam e adopted
earlier th is m onth by F irs t N ebraska
Securities, Inc.
B oth Mr. W agner and Mr. W arren
have h ad several y ears of previous
experience in th e in v estm en t and se­
curities field. B oth are native Omahans.

*

Y

*

M idAm erica B ankcard A ssociation
announced last m o n th th a t four prom i­
n en t area banks have announced th e ir ^
in ten tio n to become new, full m em bers
of th e association. M idAm erica w as
established tw o m onths ago by N a­
tional B ank of Commerce, Lincoln,
The Om aha N ational B ank and U nited

4 1 2 F a r m C r e d it B u ild in g , O m a h a , N e b r a s k a 6 8 1 0 2
P h o n e 3 4 6 - 6 6 7 7 (A r e a C o d e 4 0 2 )

T e le ty p e 4 0 2 3 4 8 -1 0 4 0

O th e r O ffices L o cated in

LINCOLN
Nebraska

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N o r t h w e s t e r n

B a n k e r ,

#
*

D e c e m b e r ,

LEXINGTON
Nebraska
1968

,

VERMILLION
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V


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

N o rth w e s te rn

B anker,

D ecem ber,

1968

78

Nebraska News
U . S. N a tio n a l .................... 103,927,110
F ir s t N a tio n a l ...................... 95,456,421
S to ck y a rd s N a tio n a l ........ 32,755,009
C en ter ....................................... 18,787,062
F ir s t W e stsid e .................... 18,298,104
N o r th S id e ........................... 12,637,979
S o u th w est ................................ 11,705,226
D o u g la s C o u n ty .................. 11,668,364
7,145,980
P a c k e rs N a tio n a l .............
S ecu rity N a tio n a l .............
6,953,816
A m es P la z a ...........................
5,261,126
W . O m ah a N a tio n a l .........
4,615,190
F ir s t W estro a d s ..................
2,431,074
1,718,195
*M id C ity ................

89,785,120
94,980,750
30,609,406
15,114,652
15,478,388
13,110,123
8,345,646
10,834,617
5,627,857
6,604,097
4,385,558
3,256,656

T o ta ls ............................. $511,985,580
♦F o rm erly th e In d ia n H ills B an k .

$480,790,197

*

*

À

V

963,260

*

W illiam Riley Kovar, Jr., has been
appointed an account executive w ith
th e Om aha office of Dean W itter &
Company, Inc., according to M anager
William T. Martin.

Changes at M onroe Bank
D E T A IL S of new expansion program fo r N o rth Side B ank of Omaha are explained
b y Joseph M. H a rt, J r . (le ft) , pres., w ith assistance of Steve M angold (rig h t).

S tates N ational B ank of Omaha.
T he four new full m em ber banks
are: Iowa-Des M oines N ational Bank,
Des Moines, Iowa; H oughton State
B ank, Red Oak, Iowa; F irs t N ational
B ank and U nion N ational Bank, both
of W ichita, Kan.
More th a n 350 b an k s have signed
letters of in te n t to tak e p a rt in the
M idAm erica B ankcard p rogram w hich
offers M aster Charge in th e area.
A ctual issuance of M aster Charge
cards is scheduled for n ex t spring.
*

*

*

F o rm al ground b reak in g for the new
addition to th e N o rth Side B a n k took
place last m onth. The expansion,
w hich w ill extend th e stru c tu re to th e
east of th e p re se n t building, v irtu a lly
doubles th e floor area of th e b an k and
tran sfers th e m ain en tran ce to th e east
w all, m aking it accessible to th e p a rk ­
ing area.
An en tran ce plaza fe a tu rin g a foun­
tain w ill tie in w ith th e p re se n t m ini­
p ark developed earlier by th e bank.
E xpanded p ark in g facilities w ill be
m ade available.
A principal fe a tu re of in te rio r con­
stru ctio n w ill be a 60-foot ro tu n d a in
th e m ain lobby w ith teller w indow s
grouped in a sem icircle. An overhead

sk y dome w ith in direct lighting w ill
sim ulate norm al daylight.
A circular staircase from th e m ain
floor w ill lead to a new com m unity
room on th e low er level. E xpanded
q u a rte rs for operations and service
d ep artm en ts also w ill be on th e low er
level.
B oyer and Biskup, Omaha, are arch i­
tects. F oster-Sm etana Co., general
co n tracto r anticipates c o m p l e t i o n
som etim e in th e fall of 1969.
*

*

*

The October 30 s t a t e m e n t call
show ed th a t O m aha’s 15 com m ercial
b anks increased th e ir deposits by $56.7
m illion over the October, 1967 call.
Loans increased $31.2 m illion, up 6.4
p er cent. The com parisons:
D ep o sits
1968
O m aha N a tio n a l ................$314,858,966
F ir s t N a tio n a l .................... 160,708,925
U . S. N a tio n a l .................... 152,613,093
S to ck y a rd s N a tio n a l ........ 53,021,816
C en ter ....................................... 26,622,874
F ir s t W estsid e .................... 25,039,244
D o u g la s C ou n ty .................. 22,816,163
N o r th S id e ........................... 21,298,097
S o u th w est ............................. 16,636,607
P a c k e r s N a tio n a l ............. 16,365,190
S ecu rity N a tio n a l ............. 12,091,924
W . O m ah a N a tio n a l .........
8,911,627
A m es P la z a ...........................
8,176,214
F ir s t W estro a d s ..................
3,358,977
*M id C ity ..............................
1,964,700
T o ta ls

.............................$844,484,417
L oan s
1968
O m aha N a tio n a l ................. $178,624,924

1967
$300,105,329
149,446,819
145,709,480
46,163,625
23,938,349
20,031,909
19,537,552
18,478,514
13,009,386
16,396,030
10,817,321
6,812,062
6,922,487
1,370,678
$787,739,541
1967
$181,694,067

V-

T he board of directors of th e B ank
of M onroe has been increased from
th ree to five m em bers by th e resig n a­
tion of K enneth R. H u rn er, pending
his acceptance of a b an k in g position
in Skidm ore, Mo., and the election of
Lee K. H arris, Jan ice Ziegler and K en­
n eth H. D alton, M.D., to th e board.
Mr. H arris is chief executive officer
and vice p resid en t a t th e bank. Janice
Ziegler h as been associated w ith the
b an k th e p ast 13 y ears and w as re ­
cen tly prom oted to cashier. Dr. Dal­
ton is a resid en t of Genoa, Neb.
Je a n C arstenson has been prom oted
to a ssistan t cashier at th e bank.

r

O pens New B uilding
T he L exington S tate B ank opened
for business in its new building on
D ecem ber 9, according to Lym an
Stuckey, b an k president. P lans for an
open house w ill be announced at a
later date.

R etires in V alentine
E lm o G ardiner, vice p resid en t and
directo r of the B ank of V alentine, has
resigned after 31 y ears of service. He
began his ban k in g career at the
G uardian S tate B ank in Alliance.
W. B. H uffm an of Allison, w ho has 18
y ears of b anking experience, including
tw o y ears as a b an k in g exam iner, has
been nam ed to replace Mr. G ardiner.

1201 SOUTH SIXTEENTH STREET

r

i,

O M A H A , NEBRASKA 68108

1

N o rth w e s te rn

B anker,

D ecem ber,


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

1968

y

79

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Federal Reserve Bank of St. Louis

op O M A h A
N o rth w estern

Banker,

D ecem b er,

196S

80

Nebraska News

A g S e m in a r s . .
(C ontinued from page 73)
farm debt. PCA’s now h andle five
tim es w h a t th e y used to handle. T hey
are now m aking loans to 18 p er cent
of the Class 1 and 2 farm custom ers
and only 12 p e r cent of th e m arg in al
operators. B an k ers are m aking loans
to 43 p er cen t and 40 p e r cen t respec­
tively of th ese categories. T h e re ’s a
lot at stak e h ere for th e projected
farm debt of 1980 is $100 billion.
T here are tw o card in al p rinciples I
have learn ed in m y experience as a
banker: 1. If a b o rro w er goes from
one to tw o lenders, he w eakens his
position. 2. If a b a n k e r m akes cred it
available in too m uch q u a n tity and
too easy, th e n he does th e b o rro w er a
disfavor.
F arm in g h as becom e big business
and it’s tim e for all b a n k e rs to realize
th is and act accordingly. In city b anks
th e com m ercial loan officer an d th e
cred it officer w atch certified re p o rts of
b o rrow ers to keep tab s on progress of
a business and especially th e cash
flow th a t w ill re p a y th e loan. W e
control th e en tire loan, even if others
are in on a p a rt of it. The sam e th in g
is being done in co u n try b an k s w here
th e local b an k lends m oney and the
city ban k s participate.
One problem w e note is th e lack of
cooperation b y local b an k s in financ­
ing farm eq u ip m en t m ach in ery and
th u s creatin g an area in w hich equip­
m en t firm s set up captive finance com ­
panies. Yet, we b a n k ers tu rn around
an d finance th is v e ry com m ercial pa­
p er on loans you pass up! F a rm
eq uipm en t can be d epreciated out
over seven years. I ’m not advocating
a seven-year loan payout, b u t th e re
is a need for m ore th a n 24-36 m onth
rep ay m e n t loans by banks.
A noth er m a tte r reg ard s fertilizer
loans. T he tim e h as come for u s to
find a w ay to finance th is and all
needs of farm custom ers so th e y can
get th e ir m oney from us, th e n pay
cash to th e feed store, etc., and gain
w h atev e r cash discounts can be ob­
tained to reduce his costs.
City b an k s have an obligation to
w o rk w ith c o u n try b an k s on loans
such as local elevators; b u t th e local
b an k er also has an obligation to coop­
erate w ith city b an k s in placing loans
on a m ore businesslike basis. If I
h ad m y w ay I w ould also like to have
a rep u tab le w areh o u se firm on loans
for b e tte r peace of m ind an d also as
a valuable asset tool.
If th e new breed of farm m anager
is as sh a rp as I ’m su re he is, he w ill
have th e p ro p er records you need to
N o rth w estern

B anker.

D ecem ber,


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

1968

m ake business type loans. These m en
are w ell aw are of th e techniques
needed to produce a profitable w o rk ­
ing p a rtn ersh ip .
T here is no excuse for banks h av­
ing only a 30-35 p er ce n t loan ratio.
T hey are n o t han d lin g local business
needs a t th is rate. If th e tre n d con­
tin u es to have a g ricu ltu ral loans m ade
by o th er th a n local ban k ers, th e n the
local b an k w ill be by-passed fu rth e r
and needed lending w ill come directly
into big city banks, farm credit banks,
etc.
T his is a tre n d we don’t like, so we
urge y o u c o u n try b an k ers to get back
into being a complete lender in yo u r
a g ric u ltu ral c o m m u n i t y so as to
strengthen local ban k s and im prove
th e sm all to w n ’s facilities and econ­
omy. Big city ban k s are in a position
of w a n tin g and being able to help you
do th is needed job.
In Illinois w e’ve told our co u n try
b an k ers w e w ill tak e a portion of
th e ir total portfolio a t heavy tim es of
th e y e a r to help them . A one b ank
holding com pany, such as ours, can be
of help in m an y w ays to th e sm aller
b an k w ith a w ide v a rie ty of services.
The Political Overtone
The final sp eaker w as Mr. Brow n,
w hose topic w as “W ho’s D riving This
T racto r?—A Look a t Political Im pacts
on A g ricu ltu re.” H e said th e ex­
ten d ed tug-of-war over th e y ears on
farm price controls evolved into th e
liberals (su p p o rtin g federal com pul­
sory controls) and conservatives (who
oppose federal dom ination). “T hen
cam e a n ew force in th e form of th e
consum er,” he stated.
H e said w e have a m ost u n ique situ ­
ation w h ereb y we let those w ho w ill
be governed by a federal law be the
first to vote on w h eth er th ey w a n t
th is law or not. T his is w h a t the
farm ers do, he said, w h en th e y are
p e rm itte d to vote on com pulsory con­
trols.
He w arned th e audience th a t th ey
w ill continue to h ear m ore from th e
consum er th ro u g h th e P re sid e n t’s ad­
visor on consum er affairs—B etty F u r ­
ness.
Looking at th e political picture, Mr.
B row n said th e South w as tra d itio n ­
ally an a g ricu ltu ral bloc, b u t is now
sh iftin g from ru ra l to u rb a n rep resen ­
ta tio n and th is is changing th e bal­
ance of pow er in Congress, for th e
ru ra l is now in th e m inority.
“Some w rite rs,” he noted, “suggest
th a t farm ers w o n ’t lose th e ir voice,

b u t w ill have it channeled th ro u g h
different people; th a t is, th e big firm s
serving agri-business, for th ey are
identified so closely w ith th e agricul­
tu re business. T h eir livelihood de­
pends on it and th e y have th e m oney
and th e pow er to be h eard in Congress.
I don’t know how tru e th is is. B ut re ­
gardless of ‘w ho is driving the tra c ­
to r,’ w e’ll have a R epublican A dm in­
istra tio n and D em ocratic Congress.
L ooking a t th e cam paign statem en ts,
w e w onder w h a t k in d of farm policies
and law s w e ’ll in h e rit.”
Mr. B row n said w e have 4,000,000
farm s now and only 1,000,000 are
needed to produce th e food needed
here and abroad. “T hese are th e ones
w e’ll have 10 y ears from now and th e
ones w e as b an k ers should be con­
cerned w ith .” He said about 1.5 m il­
lion farm s are classified as part-tim e,
w ith th e o p erator sem i-retired or
w orking, and w ill be phased out. The
o ther 1.5 m illion farm s are u n d er p ar
farm s and are n o t farm s in th e sense
th a t we know them , b u t are sh a re ­
croppers, etc. E v en a genius, he
stated, could n o t m ake th em profit­
able.
“These are n o t fa rm problem s,” he
em phasized, “b u t general social prob­
lem s and should be handled as such.
M any young people are leaving for
city life. T here is an over-all big so­
cial problem and b an k ers should rec­
ognize th e distinction.”
He concluded by saying th e execu­
tive b ran ch w ill be u n d er continuous
p ressu re from various groups to “do
som ething about th e farm problem ”—
and n o t all these groups w ill be say­
ing th is w ith th e sam e in terests in
m ind. “T ru ly ,” he said, “it is a con­
fused situ atio n .”—End.

Joins Grand Island Bank
T e rry R. C arp en ter has resigned as
an assista n t exam iner w ith th e F ed­
eral D eposit In ­
surance C orpora­
tion to become
a ssistan t cashier
and business de­
velopm ent officer
at th e Com m ercial
N a tio n a l B a n k
and T ru st Com­
p a n y in G r a n d
Island. Mr. Car­
p
en ter had been
T. R. C A R P E N T E R
w i t h t h e FDIC
for over th re e years, exam ining in th e
K ansas City D istrict.

N am ed D irector
George George has been elected a
directo r of th e P latte V alley B ank and
T ru st Company, K earney.

81

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N o rth w e s tern


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

Banker,

D ecem ber,

1968

82

Nebraska News

Purchase N elson Bank
Mr. and Mrs. Lee C labaugh of N el­
son have p u rchased the Com m ercial
B ank in N elson from Law son J.
W ehrm an and Mrs. Leone W eh rm an
Likes.
The bank, established in 1894, is th e
oldest b an k in N uckolls County.
M em bers of th e W eh rm an fam ily have
been stockholders and officers of the
b an k since its organization.
Mr. C labaugh has been associated
w ith th e b an k for 22 years, h aving
served as cashier and d irecto r since
1956. He now has assum ed th e posi­
tion of p resid en t and cashier a t th e
bank.
O ther changes at th e b a n k include:
Don B iltoft of N elson, a ssista n t cash­
ier; Mrs. C labaugh and W. E. G arrison,
N uckolls C ounty atto rn ey , directors.
Jam es F. M urphy, associated w ith th e
b an k for th e p ast 52 y ears and execu-

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SC H IM M E L

five vice presid en t since 1956, w ill re ­
tire on J a n u a ry 1.

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BANK DIRECTOR . . .
(C ontinued from page 27)
risk y e t profit o p p o rtu n ity w hich the
new v e n tu res provided.
D irectors of n ational banks w ere th e
first to be concerned w ith th e ir in ­
creased need to m ake policy decisions,
b u t v e ry sho rtly directors of state
c h a rte red banks had even m ore diffi­
cult policy decisions—one of the m ost
significant being w h e th e r th ey should
abandon th e ir state c h a rte r for a n a­
tional one. T his w as th en logically
followed by th e questions of in tro d u c­
ing th e services th a t n ational banks
could provide b u t state ch artered ones
often could not. N aturally, th is led to
revisions of state b an king codes, and
w ith each revision directors had to
m ake th e policy decisions affecting the
v ery com petitive life of th e ir banks.
B an k ers and directors w ho historically
supp o rted u n it b anking w ere in creas­
ingly to rn betw een th e ir original pos­
tu re and recognition th a t technological
changes, including autom obiles, w ere
sh iftin g th e balance of th e scale
to w ard “facilities,” “m otor ban k s,”
“agencies,” “offices” and “holding com­
panies.”
W hile b ank directors w ere stru g ­
gling w ith legislative innovations and
the decisions th ey required, an o th er
force also w as at w ork. The low in te r­
est ra te p a tte rn s w hich m ade R egula­
tion Q endurable w ere, u n d er the
n a tio n ’s adverse balance of paym ents,
inflation and anticipation m oving
upw ard. A gain policy decisions of di­
recto rs becam e necessary.
Not only did th ey have the problem s
of deciding on such things as m oving
th e ir ow n tim e and savings rates u p ­
w ard s w ith Q and m atching th e rates
paid by savings and loan associations
b u t a t th e sam e tim e, th ey had to face
two o th er problem s. T heir bond port-

W IN N E R of th e C rystal B all G azing Con­
te s t sponsored by th e F irs t N ational B ank
of Omaha was K eith E. Clouse (rig h t),
cash., F irs t N atl., F rien d , Neb., as a n ­
nounced in th e N ovem ber issue. P re se n t­
in g him w ith a p erm anent plaque and
tra v e lin g tro p h y in photo above is M erv
A egerter, 2nd v.p. of 1st N atl., Omaha.
The contest w as held in connection w ith
the Omaha b a n k ’s T enth A nnual B eef C at­
tle Conference earlier th is fa ll and con­
te s ta n ts w ere to estim ate average prices
of various b eef c a ttle grades on the Oma­
ha m ark et fo r th e w eek of O ctober 18.

folios dropped in value as in terest
rates rose and sophisticated decisions
involving gain and loss tax y ears be­
came elem ents of b ank policy. The
loan rates to custom ers of th e ir b ank
also w ere advanced, b u t m any country
banks failed in educating th e ir bor­
row ers th a t the w ell-publicized “prim e
ra te ” of the big cities should not be
considered applicable to th e ir local
situations, w hich involved no com­
p en satin g balances and non-prim e ac­
counts.
B A N K

D IR E C T O R

. . .

(T u rn to page 84, please)

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B anker,

D ecem ber,


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Federal Reserve Bank of St. Louis

We can help you . .

1968

may the joys
of the holiòay
season last you
thnouqh all the
òays of 1969.
M e m b e r F D IC

National Bank
of Commerce
M am B a n k 1 3 th &. O S ts . / P a tio O f f ic e lO th & . O S ts . I L in c o ln , N e b ra s k a

N o rth w e s te rn


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Federal Reserve Bank of St. Louis

Banker,

D ecem b er,

19ÁB

84

OTAL deposits of the Lincoln
banks clim bed nearly $41 m illion
since last y ear a t th e sam e tim e. F ol­
low ing figures, w hich re p re se n t the
condition of b an k s at th e close of b u si­
ness October 30, include th e new L in ­
coln Bank, W est Gate, w hich opened
in Septem ber.
Loans a t th e b anks w ere up about
$16 m illion to $205,835,884, and assets
to talin g $406,376,956, show ed an in ­
crease of alm ost $27 m illion from
October 4, 1967.

T

O C TO BER 30, 1968
D ep o sits
F ir s t N a tio n a l B a n k ........ $179,508,764
N a tio n a l B a n k o f
C om m erce ........................... 124,084,760
U n io n B an k ........................... 13,130,320
G a tew a y B an k .................... 10,326,716
C itiz en s S ta te B a n k ...........
8,110,983
H a v elo ck N a tio n a l B an k ..
7,276,684
C ity N a tio n a l B a n k .........
7,133,935
L in co ln B a n k S ou th .........
3,506,851
C o rn h n sk er B an k ...............
2,727,192
W e s t G ate B an k ..................
882,301
T o ta ls

..............................$356,688,506

L oan s
$100,420,710
75,598,098
7,487,750
5,545,372
3,792,861
3,841,975
4,492,303
2,363,561
1,707,151
586,103
$205,835,884

O C T O B E R 4, 1967
D ep o sits
L oan s
F ir s t N a tio n a l B a n k .........$164,563,998 $ 94,231,852
N a tio n a l B an k o f
C om m erce ........................... 117,232,065
68,388,311
U n io n B a n k ........................... 11,384,014
7,473,656
G a te w a y B a n k ....................
7,881,064
4,748,744
C itiz en s S ta te B an k ........
7,542,027
4,195,662
H a v e lo ck N a tio n a l B an k ..
6,247,128
3,539,385
C ity N a tio n a l B an k ........
6,125,023
3,703,476
L in co ln B an k S o u th .................................... 2,749,777
2,291,401
C o rn h u sk er B a n k .............
2,404,258
1,401,079
T o ta ls

............................. $315,883,799

*

*

>1=

$189,973,566

The board of d irecto rs of th e First
National Bank and Trust Company of
Lincoln h as announced th a t th e fo u rth
q u a rte r dividend for th is y ear w ill be
increased to 40 cents p er sh are on th e
b a n k ’s capital stock. The increased
dividend is payable J a n u a ry 2, 1969,
to stockholders of record at th e close
of business on D ecem ber 20, 1968. The
m ost re c e n t an n u al dividend ra te has
been $1.48 p er share.

The form er First Nebraska Secu­
rities, Inc., w ill now be know n as F irs t
Mid A m erica, Inc., according to Dale
C. T instm an, p resid en t of th e in v est­
m en t firm.
The decision for th e nam e change
w as p rom pted by the rapid grow th of
F irs t N ebraska Securities, Inc., and
by th e expanded geographical area
served by th e firm.
F irs t N ebraska Securities, Inc., w as
established in 1961 and becam e a m em ­
ber firm of th e New York Stock E x ­
change th a t sam e year. The personnel
com prising the firm came from the
m erg er of th e in v estm en t d ep artm en t
of th e F irs t T ru st Com pany of Lincoln
and T in stm an and Company, also of
Lincoln.
In its few sh o rt y ears of operation,
th e firm has increased revenues m ore
th a n fivefold, and th e original staff of
50 persons has m ore th a n tripled.

BANK DIRECTOR . . .
(C ontinued from page 82)
Then, w hile th in g s w ere chaotic,
cam e th e re b irth of the credit card.
T his tim e, on a n ational basis, it forced
directors to look into th e m u rk y fu tu re
of th e thousand and one decisions
such as th e b ank sta rtin g its own card
system , joining a local, a regional or
national system , joining as a principal
or as an associate, joining to anticipate
a com petitor b ank w hich w ould pos­
sibly find a com petitive credit card to
its liking. The perceptive b ank direc­
to r w ondered w h a t “associate” m em ­
bers, w ith no sh arin g of th e revolving
c o n s u m e r credit w ith “p rin cip al”

NEBRASKA NATIONAL
LIFE INSURANCE COMPANY

Cdhe addome oj Credit insurance
1222 F St., Lincoln, Nebraska 68501
N o rth w estern

Banker,

D ecem ber,


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

1968

banks, w ould experience in term s of
th e ir consum er loan dem and. W h a t
w ould th is m ean for his bank?
On top of this, W ashington w as m ak ­
ing noises w hich called for m any m ore
v ital decisions on th e p a rt of all banks.
Some cost a b it of money, and it w as
hoped w ould produce desired resu lts.
These included increased use of direct
verification. D irectors on th e w hole
favored d irect verification, since it did
reinforce th e ir safety u n d er th e obli­
gation for directors exam inations.
Several directors did feel th ere w ere
serious questions w h e th e r the benefits
of d irect verification w ere com m en­
su rate w ith the costs.
A nother decision directors supported
for th e m ost p a rt w as th e B ank Protection Act. Big city b an k ers found
th e ir existing system s m et th e stan d ­
ards; co u n try b an k ers had to beef-up
th e ir holdup and b u rg lar system s w ith
cam eras. The costs w ere recognized
as a by-product of th e sh arp jum p in
the nu m b er of banks being robbed.
W ashington Influence
O ther W ashington edicts w ere m ore
h esitan tly accepted as being in ten o r
w ith the tim es, such as the “Truth-inL ending” req uirem ent. It m eant m ore
w ork and some additional expense, b u t
m ost directors felt th a t after an initial
adverse reaction banks w ould em erge
in a stro n g er and b etter position th a n
m ost of th e ir com petitors. Besides,
th ere w as little th e board could do
about th a t type of regulation. E spe­
cially those banks w ith over 50 em ­
ployees w hich w ere bro u g h t un d er
the “racial balance” req u irem en t found
th e ir directors at some odds as to
policy. A few boards in effect told th e
U. S. T reasu ry to take th e ir T&L ac­
count out of th e ir in stitu tio n s, b u t
m ost boards, w hile concerned as to
w here such policies w ould end, have
attem p ted to comply.
This aw areness has been one of the
m ore im p o rtan t forces in m oving di­
rectors from th e “forg o tten ” role. I t
has th ru s t th em into g reater prom i­
nence. Recognizing this, the F ounda­
tion of th e S outhw estern G raduate
School of B anking at S outhern M eth­
odist U n iv ersity has designed a com­
prehensive program for bank direc­
tors. T hrough five A ssem blies of B ank
D irectors, regionally oriented th ro u g h ­
out N orth A m erica each year, bank
directors are being aided in th e p er­
form ance of th e ir increasingly de­
m anding and challenging positions.
The A ssem blies m ake sure th a t the
educational needs of directors are not
forgotten. The n e x t A ssem bly is
slated for P alm Springs, Calif., from
F e b ru a ry 22-24.—End

^

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A

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85

N o rth w e s tern


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

B an ker,

December, J9 6 8

“ '¿ M

a y

J o y C o m

e

to

From all of us at Bankers Trust, we send you our very
best Season’s Greetings. We wish you a Merry Christmas
and a bounteous New Year. And may the Christmas
message “Good will to men” reflect that light that
shines in all of us this very special season, and
hopefully all through the year.

Bankers Trust co.
S IX T H

A N D

L O C U S T . D E S

M O IN E S

Offices: 3905 Merle Hay Road J 6617 University in Windsor Heights j

Member:F.R.S.6F.D.I.C.
N o rth w e s te rn

Banker,

December,


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

1968

Grimes. Iowa

”

R O BER T J.
STE R LIN G

H OM ER R.
JE N S E N

President

Vice President Correspondent
Bank Officer

GARY
STE V EN SO N

87
T ra in ee R ecru itm e n t— F o r e st T. L e w is, e x e c u tiv e
v ic e p resid en t, P la z a S ta te B a n k , D es M oines.

Iow a

NEW S
J. W. UPTON, JR.

Preisdent

A. E. LINDQUIST. JR.

Secretary

Ida Grove
Des Moines

N a m e a t A C o m m ittee C hairm en
H A IR M E N of com m ittees and su b ­
com m ittees of th e Iow a B ankers
A ssociation have been announced for
th e com ing y e a r by Jam es W. L ipton,
Jr., p resid en t of th e IBA and executive
vice p resid en t and cashier, Ida C ounty
S tate B ank, Ida Grove.
The a d m in istrativ e com m ittee is
com posed of Mr. Lipton; Vice P re si­
d e n t J. C. B lackford, president, U nion
B ank and T ru s t Com pany, O ttum w a;
S ecretary A rth u r E. L indquist, Jr.;
T re a su re r George E. Albee, p resident,
Peoples B an k & T ru s t Company,
W aterloo, and R e t i r i n g P re sid e n t
O liver A. H ansen, president, L ib erty
T ru s t and Savings B ank, D urant. The
Council of A d m in istratio n is m ade up
of th e ad m in istrativ e com m ittee and
th e group chairm en.
A d m in istrativ e subcom m ittees are
headed by th e follow ing chairm en:
Segregated Fund—C. E. K indw all,
presiden t, A lbert City Savings B ank.
Convention — S um ner G. B arnard,
vice p resid en t and cashier, B ankers
T ru s t Com pany, Des Moines.
Retirem ent—Headquarters Staff and
Membership—M erten J. K laus, p re si­
dent, F ir s t S ecurity B ank & T ru st
Com pany, C harles City.
Advisory—Dale C. Sm ith, vice p resi­
dent, C entral N ational B ank and T ru st
Com pany, Des Moines.
C hairm en of in dividual com m ittees
and subcom m ittees w ill be as follows:

C

A g r ic u ltu r a l
C om m ittee— H arold
p resid en t, A k ron S a v in g s B an k .

H.

5C. P e r so n n e l— W a g e and H our— R obert E m erin e , v ic e p resid en t, F ir s t N a tio n a l B a n k , C ouncil
B lu ffs.
5D . C ost and Incom e A n a ly sis— H . V . R ow en h orst, p resid en t, N o r th w e ste r n S ta te B a n k , O range
C ity.
B a n k in g L aw R esea rch C o m m ittee— D ean D uben,
p resid en t, F ir s t N a tio n a l B a n k , D a v en p o rt.
B an k T a x a tio n C om m ittee— C. W . G rim es, p r e si­
d en t, F ir s t N a tio n a l B a n k , W est U n io n .
(S u b co m m ittees)
S ta te T a x a tio n — R u sse ll S. H o w a rd , J r ., e x e cu ­
tiv e v ic e p resid en t, M ah aska S ta te B a n k , O skaloosa.
F ed eral T a x a tio n — E a rl J. U n d er b r in k , p resid en t,
F ir s t N a tio n a l B a n k , F o r t D odge.
In d u str ia l E x p a n sio n C o m m ittee— G. W. C orken,
sen io r v ic e p resid en t, D ub u q ue B a n k & T ru st
C om pan y, D ubuque.
I n s ta llm e n t L o a n s C o m m ittee— L ew is Job, v ic e
p resid en t, I o w a S ta te S a v in g s B a n k , K n o x v ille.
In su ra n ce C o m m ittee— O bert L. (R o y ) L a rso n ,
p resid en t, F a r m ers T ru st and S a v in g s B a n k ,
W illia m sb u r g .
F ed eral L e g isla tiv e C om m ittee— K en n eth B ean ,
v ic e p resid en t, M arion C o u n ty S ta te B a n k , P e lla .
S ta te L e g isla tiv e C o m m ittee — W . N . S h e lle n b a rg er, p resid en t, F a r m ers S ta te B a n k , M arion.
G u aran teed L o a n s C o m m ittee — J. G. L eah y,
p resid en t, P e lla N a tio n a l B a n k , P e lla .
P u b lic R e la tio n s C om m ittee— B ill D . P a u lsen ,
e x e c u tiv e v ic e p resid en t, L ib er ty T ru st & S a v in g s
B an k , D urant.
B a n k in g E d u ca tio n C o m m ittee— R eid C. G iese,
v ic e p resid en t, F ir s t N a tio n a l B a n k , S um n er.
(S u b co m m ittees)
S tu d y M eetin g s -R o b ert L. B u en n ek e, a s sista n t
v ic e p resid en t, Io w a -D es M oines N a tio n a l B a n k ,
D es M oines.
S ch ools and S em in a rs — H . C lark H o u g h to n ,
p resid en t, F ir s t N a tio n a l B a n k , Io w a C ity.

T ax S ch o o l C om m ittee — M arvin G. H a n sen ,
p resid en t, E a rly S a v in g s B a n k , E a rly .
B a n k S ecu rity C o m m ittee — F. A dd ison J o n es,
e x e c u tiv e v ic e p re sid e n t and ca sh ier , G rin n ell
S ta te B a n k , G rin nell.
S u p erv iso ry A g e n c ie s C om m ittee— J. M. C urrie,
p resid en t, S ta te B a n k o f S ch a lle r, S ch a ller.
U . S . S a v in g s B on d s C o m m ittee— C. C. F r itch er,
v ic e p resid en t, S ecu rity T ru st & S a v in g s B a n k ,
S torm L ake.
C orresp on d en t B a n k R ela tio n sh ip s C om m ittee T h om as C. H o rn , sen io r v ic e p resid en t, S ecu rity
N a tio n a l B a n k , S io u x C ity.
F ed era tio n o f C oun ty B a n k ers A sso cia tio n s—C. W . D u n n , p resid en t, S ecu rity S a v in g s B a n k ,
E a g le Grove.
Io w a
J u n io r
B a n k ers
A sso cia tio n — B ernard
H a rm s, a s s is ta n t ca sh ier, P e o p les S a v in g s B a n k ,
W ellsb u rg .

H onor M uscatine Banker
Special honors w ere received by
George A. Shepley, president, F irs t
N ational B ank of M uscatine, recently
w hen he w as nam ed “Dad of th e Y ear”
at th e State U n iv ersity of Iowa.
H is selection by Omicron Delta
K appa, m en ’s leadership honor society,
w as announced at a pep rally preced­
ing Dad’s Day w eekend. He w as nom i­
nated by his son, B rian, a senior in
th e College of B usiness A d m inistra­
tion, and w as introduced to football
fans at the Iow a-N orthw estern game.
Mr. Shepley has been tre a su re r and
vice p resident of the Dads A ssociation
and th is year w as nom inated for the
office of president.

New C enterville D irectors
J. B radley Young, president, Iowa
T ru st and Savings Bank, Centerville,
has announced the ap p ointm ent of two
new directors. T hey are E. F ran cis
O ehler of O ehler B ro th ers F iresto n e
Store and C. E. W oodin of B row n
Shoe F it Company.

.ilttrnin 1/ si tie

O
O pen ed

H arm s,

(S u b co m m ittees)
A g r ic u ltu r a l C redit S ch ool— F . J a m es Boyd,
a s s is t a n t
v ic e
p resid en t,
F ir s t
S ta te
B an k ,
A udubon.
F o r estr y — G eorge N . B en n er, v ic e p resid en t,
C itiz e n s S ta te B an k , D o n n ellso n .
A g r ic u ltu r a l B r e a k fa s t — J a m es W . C raven s,
p resid en t, S a n b o rn S a v in g s B an k .
A g r ic u ltu r a l S tu d y
C om m ittee — S ta n le y
W.
E v a n s, p resid en t, N o r th w e ste r n N a tio n a l B an k ,
S io u x C ity.
4-H and Y ou th A c tiv itie s — E. P . K e tte r in g ,
p r e sid e n t, F a rm ers S ta te B an k , L a k e V iew .
O u tsid e F arm R e p r e se n ta tiv e s— J a m es H. C rane,
v ic e p r e sid e n t and ca sh ier , P a lo A lto C oun ty
S ta te B a n k , E m m etsb u rg .
A u d itin g C o m m ittee— W . A . K n eelan d , p resid en t,
P o s tv ille S ta te B an k .
B a n k in g A n a ly sis and P roced u res C om m ittee—
R . J. N a ch a zel, v ic e p resid en t, F a r m ers & M er­
c h a n ts B a n k & T ru st, B u r lin g to n .
(S u b co m m ittees)
5A . D e stru ctio n o f O b solete R ecord s— Joh n M.
S h a n d a , v ic e p re sid e n t and ca sh ier , H om e S ta te
B a n k , J efferso n .
5B . A u to m a tio n — H . C. W in d er, v ic e p resid en t,
C en tra l N a tio n a l B a n k an d T r u st C om pan y, D es
M oines.

B A N K IN G SERV IC E
N atio n al B ank in its
L a k ep o rt Road. The
ises. V. R. “B arn ey ”

in the M orningside a re a of Sioux C ity is provided by Security
new drive-up, w alk-in office located a t M orningside A venue and
Colonial designed b uilding also has ample p a rk in g on the prem ­
Cassem, vice p resid en t and cashier, is m anager of the new office.
N o rth w e s te rn


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

B anker,

D ecem ber,

1968

88

Iowa News

W liitteinoi'e f'om p lvtvs HuHtiimj

fu rn ish ed w ith blue upholstered chairs
and divan to accom m odate custom ers.

Moves T o Forest City;
Plans New B u ilding

OPEN" H OUSE w as held by th e F arm ers S ta te B ank, W hittem ore, on F rid a y , D ecember
6. The new building w as designed by P & I i F ix tu res, Spencer, and P & H b u ilt all of
the fu rn itu re and fixtures. Diebold, Inc. supplied a new v a u lt door, n ig h t depository and
alarm system , according to Vic B. P erk in s, p resident.

E m m etsburg Open H ouse
Open house w as held last m o n th in
the new b uilding com pleted by th e
Palo Alto C ounty S tate B ank, E m m ets­
burg, according to W illiam J. Degnan,
president.
The 64 feet by 86 feet building con­
tain s th e la te st in heating, air con­
ditionin g and lighting. I t is of b rick
constru ctio n w ith glass fro n t and rear.
Two convenient drive-up w indow s

are located on th e south side of the
building w ith a hard-surfaced lot for
custom er p ark in g adjacent to the
drive-up facilities. The lot w ill accom­
m odate 20 cars.
The in terio r of the building is
carpeted th roughout. The decor is
tastefu l w ith th e in te rio r brick w alls
accented by th e oak fu rn ish in g s and
chrom e black trim .
A sm all annex to the m ain lobby is

Specialists in Business
Financing and
Management Services.

Follow ing approval by the Iow a
S tate D ep artm en t of B anking for th e
M anufacturers B ank and T ru st Com­
pany to m ove from C rystal Lake to
F o rest City, officials of the b ank m ade
im m ediate plans for a new building
in F o re st City.
A ccording to E llio tt E. Cooper,
president, th e building w ill be a onesto ry stru ctu re, offering a double
drive-in w indow arran g em en t. P a rk ­
ing w ill be available a t th e re a r of
th e building. A com m unity room in
the b asem ent w ill be m ade available
to area clubs and groups.
Included in th e ru lin g from the
state b an king d ep artm en t w as an
au th o rizatio n to increase th e capital
stru c tu re of th e M anufacturers B ank
to $600,000, m ore th a n double its pres­
en t total.
chased in M arch, 1967, by Mr. Cooper
The form er F a rm e rs B ank & T ru st
Com pany of C rystal Lake w as purand Jo h n K. H anson. Mr. H anson is
ch airm an of th e board of directors;
Joe DeBoest, vice p resid en t and m an­
ager; C urtis Jum pp, cashier, and Cliff
S tew art of C rystal Lake, director.
The b an k w ill m ain tain an office in
C rystal Lake.

R etires At Cedar Rapids

IO W A G R O W T H IN V E S T M E N T C O M P A N Y

J. K eith Noll, vice presid en t and
m anager of th e farm service d ep art­
m en t of th e Peoples B ank and T ru st
Company, Cedar Rapids, has an­
nounced th a t he w ill re tire D ecem ber
31. He joined the b a n k ’s staff as farm
service d ep artm en t m anager Ju ly 1,
1940.

•

H olstein Bank Gift

P r o v id in g ta ilo r e d fin a n c in g p r o g r a m s to

in d iv id u a ls o r m a n a g e m e n t te a m s th r u lo n g -te r m
lo a n s a n d / o r e q u ity -c a p ita l in v e s tm e n ts .
•

$ 1 0 , 0 0 0 to $ 2 0 0 , 0 0 0 — 5 to 1 0 y e a r te r m s

•

F o r sta r tin g , p u r c h a s in g o r e x p a n d in g a b u s in e s s .

N orton O brecht, p resid en t of the
H olstein S tate B ank, has announced
th a t the b an k has m ade a gift of new
air conditioning u n its for th e A rea
R ecreation and Golf Club, now u n d er
construction. The building is to be
42 by 84 feet and w ill have tw o stories.

Iowa Capital Changes

128 First Avenue, N.E.
Cedar Rapids, Iowa 52401
Phone (319) 363-0263
Bob Allsop, Vice-President
Jim Hird
Sheldon Clinton
*A FEDERAL LICENSEE UNDER THE SMALL BUSINESS INVESTMENT ACT OF 1958

N o rth w e s te rn

Banker,

D ecem ber,


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

1968

The follow ing capital stock increases
w ere m ade by Iow a ch artered banks
recently:
Citizens Savings Bank, H aw keye,
from $25,000 to $50,000; H edrick Sav­
ings Bank, from $65,000 to $97,500;
M ondam in Savings Bank, from $25,000
to $35,000; Davis C ounty Savings Bank,
Bloomfield, from $160,000 to $300,000,
and M arion C ounty Savings Bank,
Pella, from $100,000 to $200,000.
S ecurity Savings Bank, E agle Grove,
recen tly tra n sfe rre d $100,000 to its su r­
plus account.

89

r

IT S LIKE
CHRISTMAS
Every Day
for
American Trust
Correspondent
Bank. . . with
Bundles of Experience

%

Packages of Service
Packefs of Skills

%

Parcels of Cooperation

Call on our Jolly St. Nicks . . .

Seasons Greetings to All . . .

C H R IS T Y
ARM STRO NG

LEO
KANE

A m e ric a n T ru st
a n d S a v in g s B a n k
DUBUQUE, IOWA

MEMBER
FEDERAL DEPOSIT
INSURANCE
CORPORATION
Federal Reserve System

V.

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

N o r t h w e s t e r n

B a n k e r ,

D e c e m b e r ,

1 9 6 8

90

Iowa News

P A N E L IS T S a t the “Iow a B usiness T rends” Conference assem bled early fo r press in te r­
view s. P ictu red are: S eated—A lb e rt J . O’B rien, Jam es C. Downs, Jr., and L e if H. Olsen.
S tan d in g —F red W. M ast; C. W. A urand, host fo r th e an n u al event and p resid en t of the
Iow a-D es M oines N atio n al B ank, and E. G-. Higdon.

At Iowa-Des M oines C onference

th e r gains are expected w hich w ill
move prices above a year earlier late
in the season.
Soybeans—All-time high production,
w ith increased carry o v er into 1969-70
m eans a large m ovem ent u n d er loan,
and prices w ill be stro n g ly influenced
by th e loan level.
Sum m ary — N et incom e to Iow a
farm ers in 1969 expected to total about
th e sam e as in 1968.
F re d W. M ast, p resid en t of Associ­
ated G eneral C ontractors of Am erica,
W ashington, D. C., and p resid en t of
Jen s Olesen & Sons C onstruction
Company, W aterloo, Iowa: T he m ost
significant developm ent to confront
our in d u stry in Iow a in recen t y ears
w as enactm en t of the 3 per cent tax
on construction services. No o th er
state taxes th e in d u stry in th is m an ­
ner. In lig h t of th is tax, a look a t th e
volum e of Iow a construction is in te r­
esting.
T here has been a rise of about 3
p er cent construction dollar volum e
in Iow a in th e first nine m onths of
1968 over th e sam e 1967 period. Dol­
lar volum e for th e en tire U nited
States in th e period w as up 10 per
cent over th e 1967 figures of $76.16 bil­
lion. This 3 p er cen t increase in Iow a
w as not sh ared by all divisions in the
i n d u s t r y . R esidential construction,
w hich includes all ap artm ents, college
dorm itories and p riv ate homes, in ­
creased 3 per cent. N on-residential
construction — in d u strial plants, com­
m ercial buildings, schools, churches,
hospitals, etc.—suffered a 10 p er cent
drop. T he p a rt of th e in d u stry least
affected by the tax — streets, roads,
bridges, u tilities—show ed a w hopping
23 p er cent increase.
N ationw ide it is expected the dollar
volum e of co n stru ctio n in 1969 w ill in ­
crease in th e range of 8 to 9 per cent
or only slightly less th a n th e 1968 in ­
crease. B u t th is tre n d is n ot up enough.
W e have been told again and again
th a t in th e n ex t 25 y ears we m u st com­
pletely rebuild our existing cities and
build an equal nu m b er of new cities;
in fact, th a t betw een 1965 and the
y ear 2000 our in d u stry m u st produce
the am o u n t of construction so far pro­
duced in all th e h isto ry of th e nation.
Significant changes are com ing in
th ree form s: p réfabrication of m ate­
rials; application of w h at is know n in
th e in d u stry as system s technology,
and use of com puters and data proc­
essing w ith resp ect to construction
eq uipm ent and m ethods.
One of th e m ost p ressing problem
areas concerns inflation of w ages in
construction. N egotiations this year
have been m ark ed by m ore u n reaso n ­
able w age dem ands and by m ore cost­
ly strik es th a n at any o ther tim e in re-

Slower^
B u t C on tin u ed G row th
t'o r e e u st fo r I 9 H9 V . S. Econotnif
th a n 500
MORE
b an k ers from

b usinessm en and
Des M oines and
o th er Iow a cities atten d ed th e 10th
an n u al “Iow a B usiness T re n d s” p ro ­
g ram p re se n te d a t H otel F o rt Des
M oines by th e Iowa-Des M oines N a­
tional B ank on D ecem ber 2.
C. W. A urand, p re sid e n t of th e bank,
in trodu ced th e six g uest speakers.
T he first five m en spoke d u rin g th e
m o rn in g session on th e im p o rtan t
subjects of ag ricu ltu re, construction,
m an u factu rin g , i n d u s t r i a l develop­
m e n t and retailing. The six th speak ­
er, Leif H. Olsen, senior vice p resi­
d e n t and econom ist for F irs t N ational
C ity B ank of N ew York, ad d ressed th e
guests a fte r th e noon luncheon on th e
topic, “Econom ic Outlook for 1969.”
A resum e of each sp eak er’s ta lk fol­
lows;
Albert J. O’Brien, president, R alston
P u rin a Com pany, St. Louis: A con­
tin u ed increase in consum er dem and
is expected for th e n e x t 12 m o n th s de­
spite inflation and th e su rtax . T his
w ill offer a stro n g su p p o rtin g factor
for ag ric u ltu ra l products. Inflation
can be expected to rise at least 3 p e r
N o rth w e s tern

B anker,

D ecem ber,


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

1968

cent; disposable incom e w ill increase
about 6 per cent; th e abnorm ally high
savings ra te w ill decline, and th e low
u n em ploym ent ratio in th e m idw est
w ill m ean continued high labor costs.
C attle—T em porary lull in profits
d u rin g th e w inter, bouncing b an k in
late sp rin g and sum m er. B etter th an
average re tu rn s for cattlem en over
n e x t few years.
H ogs—Profits f a v o r a b l e th ro u g h
m ost of 1969. E xpect 5 per cen t in ­
crease in sp rin g pig crop. L ow er
prices last q u a rte r of 1969; prices w ill
dip in 1970 and to u g h er th en to m ake
a profit.
D airy—No m ajor change in total
m ilk production.
Eggs — Above average re tu rn s ex­
pected to continue th ro u g h m uch of
1969; how ever, p re se n t favorable prof­
it levels are resu ltin g in sh a rp gains
in rep lacem ent hatch w hich w ill m ean
increased nu m b ers and low er prices
by late 1969.
Corn—The 1968-69 crop is a record
one; ab out 1 p er cent h ig h er th a n a
y e a r ago. P rices have increased from
th e low level at h a rv e st tim e and fur-

91

L ike"Rickey”
grows into"Rick”...

F

i r

s t

N

e

b

r

a

s k

a

S

e

c

u

r

i t

i e

s

’

NEW NAME IS

F

ir s t

M

id

A

m e r ic a

In c

Offering you top quality service and competitive m ar­
kets in industrial development and other municipal bonds
in Nebraska and Iowa as well as secondary m arkets of
all states in Mid-America and the W est. Seven offices
now . . . and one to be opened soon in Des Moines.

LINCOLN • OMAHA • GRAND ISLAND • H ASTIN G S • A TLA N TIC • CEDAR RAPIDS * SIOUX CITY
Member New York Stock Exchange and Other Principal Stock and Commodity Exchanges

N o rth w e & tern


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

B a n k e r ,

D e c e m b e r ,

1968

92

Iowa News

cen t years. E xcessive w age settle­
m ents, u n related to increases in p ro ­
duction or o therw ise justified, have
been forced upon the in d u stry . In ­
creases am o u n tin g to 10 or 15 p er cent
p e r y e a r are com m onplace.
Jurisd ictio n al d isp u tes b etw een u n ­
ions in th e co n structio n in d u stry also
cause trouble a t tim es. M anpow er
sho rtag es continue to plague c o n stru c­
tion. W e are in a period of tra n sitio n
a n d also revolution — technological
a n d sociological — w hich w ill b rin g
ab o u t sw eeping changes w ith in a rela­
tiv e ly sh o rt period of tim e.
E. G. Higdon, p resident, The May­
ta g Com pany, N ew ton, Iowa: Now

f fe o M

m

a n f /

é

th a t the sm oke and confusion of n a­
tio n al elections are past, w e view the
y e a r ahead as basically “m ore of th e
sam e.” G row ing inflation seem s builtin. The su rta x w ill probably have to
be re ta in ed beyond mid-year. In spite
of this, consum ers w ill continue to be
in a good position to b u y because of
savings th e y have b u ilt up since 1966.
H om e appliance sales n atio n ally are
show ing a 7 p er cent grow th over
1967, w hile in Iow a th is grow th w ill
be less th a n 1 p er cent. N ext year
about 5 p er cen t grow th nationally is
expected, b u t m uch less th a n th is in
Iow a. In d u stry in Iow a is grow ing at
a m uch slow er rate th a n th e national

(i j t w

ÿ ii& A e é

f t i t a

. i

/A iv u tÿ A o ft/

/ A e <±Aem cW eu ;i

f i c m a / / >fen >filien ef^ a /

NORTHWESTERN NATIONAL BANK OF SIOUX CITY, IOWA

W

average. This is due to population
grow th far below th e national aver■
age. T he B u reau of Census projects
th e grow th in household form ation in
th e U. S. betw een 1965 and 1975 at
19.1 p er cent. Iow a’s projected grow th
in th a t decade is 6.2 per cent. Only
W est V irginia has a low er projection.
One of th e reasons for th is is th a t
w o rk ers displaced from farm s are n o t
being retain ed in Iowa, and y o u n g *
people g rad u atin g from our Iow a
schools are leaving th e state.
A nother im p o rtan t factor in indus­
tria l g ro w th is a favorable corporate
ta x stru ctu re. T he T ax Act passed by i.
th e 1967 Iow a legislature contains
four elem ents th a t are n o t an induce­
m en t to grow th: (1) The corporate
incom e ta x ra te w as v irtu a lly dou- *
bled. (2) Corporations, previously al­
lowed to deduct th e federal incom e
ta x paid, have th is deduction on th eir
Iow a state ta x re tu rn cu t in half, h ere­
by im posing th e new ly doubled ta x X
ra te of 8 p e r cent on half of th e fed­
eral taxes already paid. (3) The ex­
em ption from use ta x on m aterial and
equipm ent n o t available in th e state *
w as repealed. (4) Iow a is now one of
v ery few states im posing a sales tax
on eith er ad v ertisin g or construction.
T ax on ad v ertisin g reduces sales and
a tax on construction reduces invest- A
m ent, both discouraging to business
grow th.
Jam es C. Downs, Jr., chairm an, Real
E sta te R esearch C orporation, Chicago: ^
T his n atio n has had phenom enal v e r­
tical gro w th —fan tastic w age paym ents
and fringes, a g reat am ount of leisure
tim e, rap id expansion of consum er ca­
p ab ility for th e average A m erican, t
Iow a sh ares generally in th is v ertical
grow th. Mid-October unem ploym ent
in Iow a w as 1.8 per cent, and in our
com pany w e consider 2.5 p er cent un- *
em ploym ent a critical labor shortage!
The n atio n also is involved in w ide­
spread horizontal grow th, for tw o rea­
sons: (1) U rban g ro w th —and th is is
tru e all over th e w orld. People are r
seeking our en v iro n m en tal advan­
tages, and a big one is w eath er. We
are also seeing an age group m igra­
tion. Y oung people w an t to be w here
th e action is. T he kid w ho goes to
H arv ard B usiness School u sually w on’t
be co n ten t to come back to th a t
Iow a tow n. (2) W e are seeing a d ra­
m atic drop in th e b irth rate. I t is A
dow n from 25 to 17 p er 1,000 popula­
tion and is expected to go dow n below
13 p er 1,000 w hich is below its pre- ,
vious low p o in t of th e mid-1930’s.
Kids now are a big expense and lia­
bility so people have few er of them .
T h ere is a new clim ate in the.m akCONFERENCE . 7 7
(T u rn to page 94, please)

N o r t h w e s t e r n

B a n k e r ,

D e c e m b e r ,


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

Ì 9 6 8

j

The C o rre s p o n d e n t B a n k in g D ivisio n

The DROVERS
N a tio n a l B a n k of C h ic a g o

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

4 7 th and A sh la n d • C h ica g o , Illin o is 6 0 6 0 9
Phone: 3 1 2 — 92 7 - 7 0 0 0

Iowa News

94

I ilns m il Mimili an M ississip p i

V.

T H E B A N K I N A P A R K is the a p p ro p riate description given to the new building ju s t opened by L eC laire S ta te B ank a t LeClaire,

L

Iow a. The hexagonal stru c tu re recaptures, in its n a tu ra l p ark se ttin g overlooking the M ississippi R iver, some of the history
and excitem ent of the days w hen LeClaire w as a riv e rb o a t h ead q u arters. In the above photos the hexagonal stru ctu re provides
a m ajestic view of the M ississippi R iver from the upper m ain b a n k in g floor as well as the com m unity room on the low er level.
The in terio r affords a relaxed atm osphere enhanced by th e stone fireplace, p ictu res of fam ous old stern w heelers and packets, and
pleasant in terio r decorations.

H E R E w as a tim e w h en LeClaire
w as th e riv e rb o a t capital of th e
w orld. E q u ally fam ous w as th e “G reen
T ree,” a perfectly form ed g iant elm
th a t stood on th e w est b an k of the
M ississippi riv e r at LeClaire.
Today, a b it of th e riv erb o at lore
and the G reen T ree have been blended
w ith th e new in th e LeClaire State
Bank, w hich opened last m onth. The
hexagon stru c tu re stands in a p a rk ­
like settin g in full com m and of a
panoram ic view of th e river.
Glen H. Suiter, president, rep o rts
th a t th e hexagonal shape lends itself
perfectly for b an k in g operations.
T here are th re e areas th a t can be
closed off w ith folding doors to give
custom ers privacy. The hillside loca­
tion provides a large com m unity room

T

Panfetng Jflemories
by

R ic h a rd

C.

special riv erb o at captains, one of
w hom w as Zach Suiter, Sr., g ran d ­
fa th e r of ban k president, Glen Suiter. L
Black red sim ulated leath er fronts
the tellers’ counter and positioned on
each panel are th e a rtis ts ’ in te rp re ta ­
tion of th e “G reen T ree,” cast in brass
*
over steel. E ach of the tellers w ears
a brass lapel pin of th e sam e design.
D ecorator Lois S uiter O’M alley had
m ore th an a professional in te re st in
selecting th e decor. She is the sister
A
of th e bank president. Because of the
wide w indow expanse she has in ­
corporated the indoor-outdoor effect.
The linen and flax draperies blend *
w ith the A nam osa stone exterior.
Over 2,500 people had an opportunity
to see the new building at a special
open house.
W ithin th e cupola on th e rooftop, a k '
light b u rn s serving as a beacon, in
retrospect, to riv erb o at captains.

CONFERENCE . . .

Ohio, steal its people. You need more
of a labor force and you need a good
tax and g overnm ent clim ate. Iow a is
a n et ex p orter of its labor force, w hile
all the states around you are n et imf
porters, so som ething’s w rong w hen a
great state like Iow a lets th is happen, f*
Robert C. Kirkwood, c h a i r m a n ,
F. W. W oolw orth Company, New
York. Due to a la st m in u te em ergency
situation, Mr. K irkw ood w as unable to
be present. His p rep ared speech w as
read to th e guests by Dick Carey, sen­
ior tru s t officer a t the Iowa-Des Moines C
N ational. Mr. K irkw ood w as m anager
of the W oolw orth store in Des Moines
d u rin g the early y ears of W orld W ar
H
II. H ere is a resum e of his rem arks:
F o r m any retailers, and certainly
for us, 1968 has been a y ear of solid
achievem ent. W e have had some prob­
lem s and one w as th e surtax. I am
h appy to say th a t the A m erican con- v/
sum er seem s to have tak en th e su rtax

N ew lin

In May, 1930, Governor W. J. Bulow of
statement that "a
chain banking sys­
tem would be a
calamity." In doing
so, he disagreed
s h a r p l y with the
thinking of the at­
torney general of
his state. Governor
Bulow express ed
the hope that "the
good Lord will de­
liver us from such
a calamity."
See MR. N E W L IN b e f o r e you
sell or buy a bank.

BANK INVESTORS
A Division of Iow a R ealty
3521 Beaver Avenue
Des Moines, Io w a Phone 515— 277-6211
N o rth w e s te rn

w ith w indow s and an o u tstanding
riv e r view, and this area w ill be used
for fu tu re expansion. The drive-in
w indow has an ex tra large glass and
counter so th a t it can serve as m any
as four autos by tw o girls w hen ex­
panded w ith pneum atic tube equip­
m ent.
On a cold w in te r’s day clients w ill
find a fire b u rn in g on the h earth built
of brick resu rrected from an old Le­
Claire home. The m antel is an old
tim b er from the L ester Auliff farm in
LeClaire.
D ecorating the gold bu rlap w all in
th e fireplace alcove are th ree steel
riverboats.
T h e re ’s the Van Sant, first ste rn ­
w heeler th a t w as a successful ra fte r
and b u ilt in LeClaire du rin g the spring
of 1869. T he oth ers are th e Sw ain and
th e E c l i p s e w hich w ere piloted
th ro u g h the rapids in LeClaire by

B anker,

D ecem ber,


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

1968

(C ontinued from page 92)
ing in the U. S., w ith tw o kinds of
lives: (1) Life in 20-25 m ajor m etro ­
p olitan areas, w here you see crim e
and o th er problem s to such an ex ten t
th a t M.I.T. stu d en ts recen tly stated
th a t New Y ork today is unm an ag e­
able and ungovernable. (2) People in
sm aller com m unities.
In Iow a you should th in k th ro u g h
th is m a tte r of grow th. Iow a needs
som e leadership in this area. T here is
n o t 15,000 square feet of Class A office
space available in th e state. Iowa
needs to m ake th e quality of life avail­
able in th e state m uch im proved. The
U n iv ersity of Iow a confirm s th a t twoth ird s of th e stu d en ts you pay taxes
to educate leave the state afte r gradutio n and nev er re tu rn an y th in g to
Iowa.
Iow a has a fine state and good gov­
ern m en t, y et it lets o ther states, like

95

THE COMPUTER BANK
We’ve finished our new computer center. It’s brand new. And the IBM
System 360/40 is brand new, too. (It’s the only one like it in north­
eastern Iowa).
This means that the National Bank of Waterloo now offers complete
computer service to area banks and their customers. A complete
computer service including Proof and Transit, Demand Deposit Ac­
counting, Direct on Line Savings, and Automatic Compounding of
Time Certificates of Deposit. Ken Young can show you even more!
If you’ve been thinking about a computer service, we’ll be happy to
think right along with you. The National Bank of Waterloo—the com­
puter bank—can help make you “ the computer bank” .

NATIONAL BANK OF WATERLOO • 110 EAST PARK AVE. & 315 E. 57H • WATERLOO. IOWA • M EM BER F.D./.C

Ob
V

r

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

N o rth w estern

B anker,

D ecem ber,

1968

96

Io w a News

TOY
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CALL: 71 2 -2 5 5 -7 9 2 6
Les Olson
Rich Breyfogle
Leo Stavas

THE T O Y
N A T IO N A L
BANK
Sioux City, Iowa

N o r t h w e s t e r n

B a n k e r ,

D e c e m b e r ,


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

1 9 6 8

in strid e and has increased his spend­
ing for goods and services su b stan tial­
ly over a y ear ago.
The D ep artm en t of Commerce show s
October retail sales exceeded $29 bil­
lion for th e fo u rth consecutive m onth.
The O ctober figure w as 10 p er cent
g re a te r th a n th e sam e m onth in 1967
w h en th ere w as no surtax!
A t W oolw orth our October sales of
1968 w ere $160,523,152, com pared w ith
October, 1967 sales of $130,522,508, an
increase of 23 p er cent. Our sales for
th e first 10 m onths of 1968—$1.4 bil­
lion—are 13 per cent over a year ago.
Our com panies have opened a to tal of
176 new stores and outlets th is year.
Our econom ists see a 7 p er cent
gain n e x t year in p lan t and equipm ent
spending nationw ide, the sh arp est rise
being 10 p er cent in durable goods.
GNP should exceed $900 billion. The
outlook for retailin g in th e U. S. is
th a t sales w ill climb to about $365 bil­
lion in 1969, com pared to $340 billion
th is year, a 6.75 per cent gain. Our
m anag em ent expects to outperform
th e n ational average.
W e have g reat expansion plans in
store for 1969, w hich w ill be our 90th
year, for w e plan to open an o th er 170
stores and outlets. W e expect to spend
$65,000,000 on p ro p e rty additions and
im pro v em ents in 1969, an increase of
8.33 per cent over 1968.
Leif H. Olsen, senior vice president
and econom ist, F irs t N ational City
B ank, New York: W hen the th ird
q u a rte r resu lts finally becam e know n,
th e y show ed th e GNP grew by $17.9
billion, against th e $10 to $14 billion
earlier forecast. Of m ore im portance,
real grow th ra n a t 5 per cent an ­
nu al rate. The m ain cause of the
stro n g pace of economic grow th
stem m ed from th e consum er. H e had
pushed his savings ra te to th e u n ­
u su ally high level of 7.1 per cent in
th e second q u arter, giving him room
to cu t back on savings to increase his
spending and still absorb th e effects
of th e ta x surcharge. W age increases
also m aintained take hom e pay.
I am am ong those econom ists w ho
have long been skeptical about using
h ig h er ta x rates to stabilize th e eco­
nom y w ith o u t considering th e role and
effectiveness of m o n etary policy. We
believe m o n etary policy determ ines
th e econom y’s grow th rate. The gov­
e rn m e n t tried containing its grow ing
deficit in 1964 w ith its fiscal policy of
ta x controls. The re su lt w as a huge
deficit suddenly being uncovered in
th e second half of 1967. H ad th a t
financing been done w ith p rivate sav­
ings th e deficit w ould not have been
inflationary. B ut th e F ed eral R eserve
pum ped excessive am ounts of new

m oney into th e m arkets. H erein lies
th e stim u lativ e—th e inflationary—ef­
fects of a large fiscal deficit. It w ould
have been easier on th e m oney m a r­
k ets and conduct of m onetary policy
if th e deficit had not been hidden in
1965.
W e expect to see some slow dow n
in th e ra te of grow th in the econom y
in th e first half of nex t year. GNP
is expected to grow about 6.5 p er
cent in c u rre n t dollars, a slow er ra te
th a n th e 8.9 p er cent estim ated for all
of 1968. Inflation w ill continue to be
th e problem w ith about 3.5 percentage points of n ex t y e a r’s GNP increase
due to inflation. P ro d u ctiv ity w ill slow
dow n to 2.5 p er cent and th is should
help set the stage for an acceleration
in real grow th late in 1969 and in
1970.—End.

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H onor F. Forbes Olberg
F. F orbes

F. F.

Olberg, executive vice
presid en t of The
Merchants Na­
tional
Bank, *
Cedar Rapids, has
been e l e c t e d a
tru ste e of Cornell
College, M o un t
V ernon. Mr. 01- tT
berg is cu rren tly
serving as presi­
den t of the Cedar
R a p i d s C ham ber **
OLBERG
of Commerce.

Join s H aw keye L ife
J e rry J. C reighton has been ap­
pointed supervisor of life services by ^
H aw keye
N ational Life Insu ran ce
Company, of Des Moines. The an­
nouncem ent w as m ade by D arrell L. ;
Blaess, first vice president, w ho said
th a t Mr. C reighton w ill handle u n d er­
w ritin g and policy service responsi­
bilities in th e com pany’s hom e office.

Hawkeye B ancorporation Office

Y

H aw keye B ancorporation, Red Oak
based reg istered b ank holding com­
pany, has opened a separate office in *
Red Oak in th e H oughton S tate B ank
building.
Dan Leahy, form erly auditor and
a ssistan t vice presid en t of th e F irst
N ational Bank, Clinton, has assum ed k
m anagem ent of th e office, according to
P au l D. D unlap, presid en t of H aw keye
B ancorporation.
M em ber banks are H oughton State
Bank, Red Oak; Lyon C ounty State
Bank, Rock Rapids; F irs t N ational
Bank, Clinton; P ella N ational Bank,
Pella; B u rlington B ank & T ru st Com- j pany, B urlington; Clay C ounty Nation- '
al Bank, Spencer.
1

97

t*

â

à

Let these Commerce Trust idea men
make a world-wide connection for you
i

C om m erce T ru st idea men like Tom Cannon, Jarry
Parker and Don Anderson can help you make the
rig h t w orld-w id e co nn ectio n th ro u g h Vice President
V ic to r Studley, head of our In te rn atio na l D epartm ent.
W ith bank agency relatio n ships in m ore than 160
co un trie s, these men can p erform vital in te rn a tio n a l
services fo r your bank in c lu d in g tra n s fe r of fu nd s

and fo re ign cu rre n cie s to overseas points by m ail,
cable and d ra ft, and c o lle ctio n of checks, d ra fts and
other item s payable abroad— plus m any o the r aids
to overseas banking and m arketing.
Such extensive w orld-w ide help is ju s t one b rig h t
idea fro m Com m erce T rust. Make your connection
now w ith Kansas C ity’s oldest and largest bank to
take advantage of them a ll!

The wonderful world of banking Is yours at

COMMERCE TRUST RANK
y

K a n s a s C ity , M i s s o u r i

M em b e r F e d e ra l D ep o sit In s u r a n c e C o rp o ra tio n

N o rth w e s te rn


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

B anker,

D ecem ber,

1968

98

Des Moines News
ES M OINES w ill lose one of its
best know n and respected b a n k ­
ers from the ra n k s of active b ank ex­
ecutives, w h en Raymond G. Miller,
72, re tire s J a n u ­
a ry 1 as c h a ir­
m an of th e board
of C a p i t a l C ity
S tate B ank. He
w ill continue on
th e b a n k ’s board
of directors.
Mr. M i l l e r ’ s
service w ith Cap­
i t a l C ity S t a t e
B ank spans m ore
th a n 53 y e a r s ,
w hich is b e tte r th a n half th e lifetim e
of th e b an k itself, w hich w ill have its
cen ten n ial y e a r observed in 1969. He
sta rte d as a m essenger w ith th e b ank
Ja n u a ry 8, 1916, at th e age of 19 after
grad u atio n from old W est H igh School
in Des Moines.

D

A fter tw o y ears of w alking his
“b e a t” to th e city hall, statehouse and
clearinghouse each day, he m oved into
th e bookkeeping d ep artm ent. T h at
w as in 1918, w hen hand-posted ledgers
w ere still kept. He has w atched each
n e w developm ent as bookkeeping
chores have m oved from th e old Bos­
ton ledgers to m odern-day electronic
data processing in the in terv en in g 50
years.
He becam e a teller in 1921, th en
served as a ssistan t cashier, cashier
and vice p resid en t before being elect­
ed p resid en t in 1952. He becam e ch air­
m an of th e board in Ja n u a ry , 1965,
and w as elected the b a n k ’s chief exec­
u tiv e officer last Jan u ary .
* * *
T his C hristm as m orning w ill be a
hap p y one for m ore th a n 250 u n d er­
privileged children in the Des Moines
area, th a n k to th e m any volunteers
w ho took p a rt in Central National

Bank’s an n u al Dress-A-Doll program ,
F o r th e fo u rth year, C entral N ation­
al B ank and T ru st Com pany p u r­
chased th e dolls and d istrib u ted th em
to w om en and y o u n gsters th ro u g h o u t
cen tral Iowa. These vo lu n teer seamstresses donated th e ir tim e and th e
necessary m aterials, so th a t each doll
could be a ttractiv ely outfitted in tim e
for C hristm as. The dolls w ill be distrib u te d th ro u g h th e Polk County
W elfare D epartm ent.
The dolls, including th e g ran d prize
w in n er and th e six individual cate­
gory w inners, w ere on display in th e
lobby of C e n t r a l N a t i o n a l B ank
th ro u g h D ecem ber 13.
* * *
Lee A. Shelton, vice p resid en t at
Valley B ank and T ru st Company, has
died of cancer in Iow a M ethodist Hos­
p ital here at th e age of 61. He w as
nam ed vice p resid en t of business and
in d u stry at th e b an k in 1966 and also
w as a d irector and vice presid en t of
AM F W estern Tool, Inc.
* * *
The Iowa-Des Moines National Bank
is one of four m idw estern banks to
become new full m em bers in th e MidA m erica B ankcard A ssociation.
Mid A m erica B ankcard w as established tw o m onths ago by the N ational
B ank of Com m erce in Lincoln, the
Om aha N ational B ank and th e U nited
States N ational B ank of Omaha.
The o ther th ree banks joining the
association are H oughton State Bank,
Red Oak, Iowa, and F irs t N ational
B ank and U nion N ational Bank, both
of W ichita, Kan.
* * *
The First Federal State Bank has in­
stalled a new drive-up b an king systern, w hich includes th ree outside
custom er statio n s—one at th e te lle r’s
w indow and tw o on islands.
The stations are staggered so the
teller can see and be seen by driv ers
at all th ree positions. C ustom ers in
all th ree drive-up lanes can be serviced
by a single teller. A dditional rem ote
u n its can be added to m eet fu tu re
needs w ith o u t d isru p tin g the present
system .
The drive-up ban k in g system was
custom b u ilt and installed by Diebold,
Inc.

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Lloyd Baustian

W IN N E R S in th e D ress-a-D oll C o n test fo r em ployees o f C e n tra l N a tl. B&T a re show n
w ith th e dolls th e y d re sse d a n d th e c a te g o ry in w hich th e dolls w ere e n te re d . L e f t to
r ig h t: M iss L y n n B ra n d t, c h a ra c te r; M iss M a rg a re t R hone, n a tio n a lity , a n d M iss J a n e
B yers, sensible.
N o rth w e s tern

Banker,

D ecem ber,


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

7968

Lloyd B austian, vice p resid en t and <
m em ber of th e b oard of directors of
th e C entral T ru st and Savings Bank,
E ldridge, has died a t th e age of 65.
Mr. B au stian had been em ployed by
th e ban k since 1959. He becam e vice v/ "
p resid en t in 1961 and had served on
th e board of directors for m any years.

99

“ I have always thought of
Christmas time, when it has come round,
as a good time: a kind, forgiving,
charitable, pleasant time:
the only time I know of in the
long calendar of the year,
when men and women
seem by one consent to
open their shut-up hearts freely,
and to think of people below
them as if they really were
fellow-passengers,
and not another group of creatures
bound on other journeys.
*

And, therefore, though it has
never put a scrap of gold or silver
in my pocket,
I believe that it has done me good,
and I say,
God Bless i t ! "
■Scrooge’s nephew in "The Christmas Carol”
by Charles Dickens.

!
'S

Central National B a n k S -T ru st C o m p a n y
LOCUST AT SIXTH AVENUE, DOWNTOWN DES MOINES, PHONE 243-8181

the only correspondent bank you’ll really ever need

r

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

N o rth w e s te rn

B an ker,

D ecem ber,

1968

100

Iowa N e w s

A r t D isp la y in Cellar Ha pills

1969 for the A m erican B ankers Con­
vention.
The A ssociation has prepared a
brochure on th e to u r for Iowa b ank­
ers, explaining th ree altern ate trav el
plans. One tour, w hich includes a
five-day trip on the M atson liner,
L urline, w ill leave Iowa Septem ber 13
and re tu rn on October 2 by air.
A nother tour, w hich offers air trav el
to and from H aw aii, w ill leave Iowa
Septem ber 20 and re tu rn on October
2 by air. A th ird to u r w ill leave Iowa
Septem ber 26 and re tu rn a fter the con­
vention on October 2 by air. R eserva­
tions should be m ade at once.

Join A m erican o f D ubuque
A m erican T ru st and Savings Bank,
D ubuque, has announced the addition
of two new officers.
R obert G. Scott, a senior exam iner

E L C ID , th e S p a n ish n o b lem a n hero o f th e M oslem w a rs, is p e rp e tu a te d in th is artistic*
s c u lp tu re b e in g d isp la y e d in C e d ar R a p id s d u rin g D e cem b er a t M e rc h a n ts N a tio n a l
M o to r B a n k . P ic tu r e d b e sid e th e sc u lp tu re a re th e a r t i s t a n d h is w ife , W illia m a n d
J e a n n e t te L a s a n s k y . I t to o k him one y e a r to com plete th e 650-pound w o rk b y fo rg in g
ste e l w ith h a m m e r a n d a n v il a n d a sse m b lin g i t b y w e ld in g se c tio n s to g e th e r. M r.
L a s a n s k y re c e iv e d a n M .A . d e g ree in 1964 fro m th e U n iv e rs ity o f Io w a , w h e re h is f a th e r
now h e ad s th e a r t d e p a rtm e n t. A f t e r le a v in g U. o f I., he ta u g h t a t Ohio S ta te U n i­
v e r s ity b e fo re g o in g to B u c k n e ll U n iv e rs ity a t L e w isb u rg , P a ., w h e re he is p ro fe s so r
o f a r t. T he sc u lp tu re w ill be a t th e M e rc h a n ts N a tio n a l th ro u g h o u t D ecem ber.

W aukon P rom otions
Several officer changes have been
announced by th e board of directors
of W aukon State B ank.
R ichard L om en has been nam ed
executive vice president. Mr. Lom en
has been a b an k d irecto r since 1966
and cashier since 1964 a t W aukon
State. P rev io u sly he w as w ith th e
B rento n banks, as vice p resid en t and
d irecto r of th e W rig h t C ounty State
B ank of C larion and as cashier a t the
B ren to n S tate B an k a t D allas C enter.
R ichard P restem o n has been m ade
cashier.
Mr. P restem o n cam e to
W aukon S tate as a ssista n t vice p resi­
d en t in F e b ru a ry of 1967 from the
B rento n S tate B an k at Dallas C enter

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w h ere he w as a ssistan t vice president.
M erlin K ru g er is a new assistan t
vice president. Mr. K ru g er started
w ith th e b ank in 1951 as a bookkeeper.
H e becam e teller in 1954 and has been
th e b a n k ’s loan officer since 1963.
Jam es Campbell, w ho recently joined
th e bank, is assista n t cashier. He w as
w ith th e F arm ers and M erchants Sav­
ings B ank of W aukon and W aterville
for th e p ast eight y ears and p rior to
th a t w as w ith Peoples B ank and T ru st
Com pany of W aterloo.

Plan Hawaiian T our
R eservations are com ing in fast for
th e Iow a B ankers A ssociation to u r to
H aw aii in Septem ber and October of

in fo r m a tio n o n o u r
12 a t 2 1 3 -w a y p r o fit p la n
fo r b a n k e r s :
W R IT E

B an k D e p a rtm e n t

HAWKEYE NATIONAL
202 Insurance Exch. Bldg.

N ofor
r t hFRASER
w e s te rn B anker, D ecem b er,
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1968

■

life insurance co.

Des Moines, Iowa 50309

R. G. S C O T T

R. G. H Ö L S C H E R

for th e Iow a State D epartm ent of
B anking, has been elected a senior
vice presid en t of the bank. Mr. Scott
has been living in W est Union.
R obert G. H olscher has been nam ed
an a ssistan t vice president. He w as
p resid en t of H olscher A pothecary un til
th e business w as sold early th is year.
Mr. H olscher is also a director of the
bank.
The tw o additions w ere m ade fol­
low ing th e resignation of Leo J.
Schlueter, vice president, and Jam es
H. W right, a ssistan t vice president.
M essrs. Schlueter and W rig h t have
purchased controlling in te re st in the
B adger S tate Bank, Cassville, Wis.

Plans New' Bank
N orth wood S t a t e B ank has an­
nounced plans for th e co n struction of
a new b an k building on C entral Ave­
nue. I t w ill be co n stru cted on bank
p ro p erty p u rchased from H e r m a n
Curley.
W ork is expected to begin in the
spring, w ith com pletion scheduled for
next fall.
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE. VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & C O .
O M AH A

101

George Jacobsmeyer

Bill Aldrich
Bill Davis

John Greathouse
Doug Mills
Dave Milligan

Gerry Morse
Roy West

George Spence

Bob Walcott

The men of the Correspondent Bank Division,
American National Bank,
wish you and your families
a joyous Christmas
and a happy, healthy New Year.

American National
The Idea Bank
American National Bank and Trust Company of Chicago
La Salle at Washington 60690
Phone (312) 621-5000


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

N o rth w e s te rn

B anker,

December,

1968

102

fo w a N e w s

E a gle G rove Open H ou se

friends. I t is operated on a non-profit
basis by Iow a S tate U niversity, Ames.
T his p ast year, 10,000 persons used
the 4-H Cam ping Center.

y

O pens New Facility

v

The new drive-up, w alk-in ban k in g
facility at th e K eokuk Savings B ank
and T ru st Com pany recently opened
for business. A lthough n ot fully com ­
pleted, th e in terio r of th e facility is
finished and landscaping w ill be com ­
pleted w h en w eath er p erm its n ex t
spring. A g ran d opening is planned ^
for th a t time.
W ayne Stevens is m anager of the
new facility.
y
R E M O D E L IN G , e n la rg in g c o m p leted a t E a g le G rove, Io w a.

H E S ecurity Savings B ank, Eagle tom er lobby and th e officers’ desk area.
Grove, held open house last m onth Inco rp o rated into the railin g are the
to display th e new ly enlarged and re ­ old brass te lle rs’ cages w hich w ere re ­
m odeled facilities, according to C. W. m oved from th e b an k m any y ears ago
D unn, president.
and have been stored since th a t time.
The new stru c tu re includes both the
The arches of th e original building
old building, w hich housed th e bank w ere retain ed and glassed in to give
for over 30 years, and an ad jacent de­ w indow s reaching 14 feet up from
p a rtm e n t store. R em odeling has about ground level. The tim e and tem p era­
doubled th e space for th e bank.
tu re sign is separated from th e build­
C ounter space has been increased, ing and m ounted on an arch architec­
an d th e v a u lt is about four tim es the tu ra lly designed to m atch th e building.
size of th e old one.
A u nique railin g separates th e cus- C olesburg O pen H ouse
More th a n 500 people from Coles­
b u rg and the en tire su rro u n d in g area
thro n g ed to th e F a rm e rs Savings B ank
to take p a rt in th e open house.

T

T E N S IO N

ENVELOPES FOR
EVERY BANK SERVICE
BANK
ENVELOPE
SPECIALISTS
BANK
ENVELOPE
SPECIALISTS
BANK
ENVELOPE
SPECIALISTS
BANK
ENVELOPE
SPECIALISTS

• B a n k -b y -M a il
• Checkbooks
• Transit M a il
• Correspondence
• D riv e -in Banking
• M iC R Systems
• Note Notices
• Payrolls
• Savings Books

BANK
ENVELOPE
SPECIALISTS
BANK
ENVELOPE
SPECIALISTS

• Statements

Call your experienced
Tension envelope
specialist

ENVELOPES
Des Moines Factory and Sales Office:

TENSION ENVELOPE CORP.
1 9 1 2 Grand Ave., P. O. Box 1341
Oes Moines, Iowa 5 0 3 0 5
Phone 244 -2 1 3 1

S ales Offices: C ed ar Rapids
+
D aven p o rt
F a c to rie s : Des M o in e s , Kansas C ity , S t. Louis,
M e m p h is , F o rt W o rth , M in n e a p o lis ,
South H ackensack, N . J .

N o rth w e s te rn Banker, D ecem b er,

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

1968

T ribute To W. H arold B renton
A continuing trib u te to th e m em ory
of th e late W. H arold B renton,
founder and form er presid en t of the
B ren to n B anks, has been established
at th e Iow a 4-H Cam ping C enter near
M adrid.
A $12,000 gift from th e B renton
B anks has been applied to the de­
velopm ent of Cedar Cottage in the
h u b of activities on this year-around
cam ping facility.
Cedar Cottage, developed w ith the
B ren to n gift, consists of a large living
room, fireplace, kitchen, th ree bed­
room s and a b ath on th e m ain floor;
and th ree bedroom s, a b ath and a
u tility room on th e low er level, w hich
opens onto a patio.
D uring the sum m er th e cottage w ill
serve as h ead q u arters for th e cam p
staff. F ro m Septem ber to Ju n e it w ill
be available for cam ping or w orkshop
groups or as a staff h e ad q u arters for
conferences being held a t th e camp.
The 4-H C am ping C enter w hich is
ow ned by th e Iow a 4-H F oundation
has been developed en tirely by con­
trib u tio n s from 4-H m em bers and 4-H

E xpansion Planned
A nother block of dow ntow n D aven­
p o rt w ill be m odernized n ex t y ear as
D avenport B ank and T ru st Com pany
plans an expanded b anking area, an W
undercover park in g facility and office
facilities on W est T hird S treet be­
tw een M ain and H arriso n Streets.
B ank officials say the new building,
w hich is scheduled for com pletion by
December, 1969, is the final stage of
a program w hich i n c l u d e s a new
drive-in facility on the n o r t h e a s t ^
corner of W est T h ird and M ain v
Streets, 30,000 square feet of addi­
tional b an k in g space in a three-story
stru c tu re im m ediately ad jacent to th e
p resen t b an k building and a 250-car x
m ulti-floor p ark in g facility.

To Head M erchants N ational
Bond D epartm ent
Jam es E. Coquillette, president, The ' w ~
M erchants N a t i o n a l Bank, Cedar
Rapids, has announced th a t P eter
Bailey, a ssistan t vice president, has
been nam ed m an­
ag er of the b a n k ’s
bond departm ent.
;
Mr. Bailey joined
the bank in 1957
and had been in K
t h e correspond­
e n t ban k in g de­
p a rtm e n t for th e »
last eig h t years.
Succeeding Mr.
Bailey in th e cor­
p. B A I L E Y
r e s p o n d e n t de­
p a rtm e n t area w ill be Thom as M artin,
assistan t cashier. Mr. M artin, a 1965 X
g raduate of Coe College, is re tu rn in g
to the b ank after serving tw o years
w ith th e U nited States A rm y.
**

Joins Red Oak Bank
R obert W ard has joined the H ough­
ton State B ank, Red Oak, as an in ­
stallm en t lending officer. He has been f
associated 11 y ears w ith th e R etail
C redit Com pany office in Red Oak.

103

The onlybanks LaSalle cant help
r e a l l y c a n ’t do m u c h fo r t h e
young b an k e rs who b a n k a t hom e.
U n til th e y grow u p a n d g iv e u p th e ir
piggy banks.
B u t we can do a lo t for th e b a n k t h a t
needs big b a n k services to g et an d keep
custom ers.
A s o n e o f L a S a lle ’s c o r r e s p o n d e n t

W

e

b anks, you can call on th e help of our

Investment Service, Automated Bookkeep­
ing, Complete Trust Services, International
Department— an d all our b e tte r ban k in g
ideas.
B u t do call.
I t helps to h av e a good friend on th e
financial m ain s tre e t of M id-A m erica.

*

N A T IO N A L BAN K
1 35 S O U T H LA S A L L E S T R E ET • C H IC A G O , IL L IN O IS 6 0 6 9 0 • P H O N E : 31 2 /ST 2 -5 2 0 0
M E M B E R F.D.I.C,

V

The big bank that never makes you feel small
N o rth w e s te rn


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

Banker,

D ecem ber,

1968

104

Iowa News

Major Changes fo r MGIC
E d w ard J. K a l l e m y n has been
nam ed d irector of sales-N orth C entral
States, by M ortgage G u aranty In s u r­
ance C orporation, th e n atio n ’s larg est
p riv ate in su re r of residential m o rt­
gage loans.
He is succeeded as regional directordevelopm ent for Iowa by F ra n k A.
A ugustine of C reston, Iowa. Mr. Augustine also w ill re p re se n t MGIC’s

*

S

-;

L

E. J. K A L L E M Y N

ggÉlll?

\—

* fm
¡ . ■■
. ¡¡¡ggg

.

What we really do is try to
make more credit available

*

A R E Y O U R E J E C T IN G S O M E L O A N B U S IN E S S for

lack of acceptable collateral? Marketable inventory covered by
our Field Warehouse Receipts can often supply the very
security you need.
T A K E A G O O D H A R D LO O K at how easy it is to check

the precise value of this collateral at all times. Our Univactabulated Stock and Value Reports provide daily accounting of
all warehouse activities. Inventories are physically checked by
our staff a minimum of ten times a year.
C A L L IN O UR R E P R E S E N T A T IV E — let him help you

“free up’’ additional collateral for customer loans, make use
of his practical suggestions, facilities and services.

Specify ‘ 'PRO TEC T/ON” insist on

HEW YORK TERMINAL WAREHOUSE COMPANY
nyIco

New York, N. Y. 10004
O F F I C E S

Northw estern Banker, December, 1968


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

y

subsidiary, Com m ercial Loan In su r­
ance C orporation, w hich provides pro­
tection ag ain st loss on com m ercial
m ortgage loans and com m ercial leases. *
Mr. K allem yn’s area of responsibil­
ity is in Iowa, N ebraska, South Da­
k o ta and N o rth Dakota. He w ill con­
tin u e to m ake his hom e in Des Moines.
He has been w ith MGIC since Novem^
ber 1, 1959.
P rio r to joining MGIC recently, Mr.
A ugustine served as m anaging officer
of F irs t F ed eral Savings and Loan As- h
sociation a t C reston, w here he had
w orked since 1956. He atten d ed Iowa
State U niversity. He w ill continue to
m ake his hom e in Creston.
In m ak in g th e annou n cem en t of
these im p o rtan t changes, David S.
Engelm an, vice p resident and director
of sales at th e firm ’s h ea d q u arters in
M ilwaukee, rep o rted th a t MGIC’s pro- *
gram of resid en tial m ortgage loan in­
surance is now operating in 47 states,
th e D istrict of Colum bia and th e Com­
m onw ealth of P u erto Rico. Its sub­
sidiary, CLIC, operates in 38 states j .
and expects to be available in all
states w here MGIC now operates.
MGIC has over $4 billion of resid en ­
tial loan in surance in force. T he com- *
p any in su res m ortgage loans for m ore
th a n 4,500 approved lending in stitu ­
tions reducing the len d ers’ risk of
loss. Thus, a lending in stitu tio n can
m ake a 90 p er cent loan and w ith s
MGIC in su ran ce reduce its m axim um
loss exposure to 72 p er cen t of the
resid en tial p ro p e rty ’s appraised value.

O bserves 7 0 Years

25 South William Street

O P E R A T I N G

F. A. A U G U S T I N E

I N

P R I N C I P A L

C I T I E S

F ra n k C. M oeller, ch airm an of the
board of th e F irs t N ational B ank, F o rt
Dodge, recen tly celebrated his 70th
y ear in banking. Mr. M oeller began f
his career as a m essenger a t th e old

105

...to a llo t our
Correspondent
Banking
friends.

First National Sioux
Bank
City
I M em ber F e d e ra l D eposit In su ra n c e C orporation % 'U>

Fourth at Jackson • Fifth and Pierce

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

N o rth w e s te rn

B anker,

D ecem ber,

1968

106

Iowa N e w s

F o rt Dodge N ational B ank and w as
presid en t of th e b an k from 1936 to
1963, w h en he becam e ch airm an of
the board. T he F o rt Dodge N ational
becam e th e F irs t N ational in 1964.
The F o rt Dodge b an k and associates
presen ted Mr. M oeller w ith a large
p o rtra it of him slf to be given a p e r­
m an en t place of h onor in th e bank.

IV

illiaaisbartf

Manli

WANT ADS

Rates 25 cents per word per
insertion. Minimum: 12 words.
NORTHWESTERN BANKER
306 15th St., Des Moines, Iowa
$10.00 IS
The price of a personal, air mail
subscription to the Crouse Farm
Business Reports. They help keep
loan officers and ag representatives
ahead of the changing farm picture.
Samples available. Farm Business
Council, Inc., P.O. Box F, Urbana,
Illinois 61801.

LEGAL FORMS
Any form you need we stock, or
will print. S p e c i a l forms then
stocked for prompt shipment on
reorders.
IOWA LEGAL BLANK
& PRIN TIN G CO.
Box 238, W ebster City, Iowa

N EW BUILDING- co m p le te d th is y e a r fo r F a rm e rs T r. & S a v . B k., W illia m sb u rg , Io w a,
b y B a n k B u ild in g a n d E q u ip m e n t Corp., S t. L ouis.

Buys New P roperty
The F irs t S tate Bank, M anchester,
has p u rchased p ro p erty for a new
b an k building. The b a n k ’s new loca­
tio n w ill be approxim ately tw o blocks
east of th e p re se n t b ank building, fac­
ing south on M ain Street.

N am ed D irector
Jo h n A. Muhl, vice p resid en t of
M ahaska B ottling Com pany of Oskaloosa, has been elected a director of
the Iow a T ru st and Savings B ank of
Oskaloosa. He fills th e v a c a n c y

intra

created by the death of W ill B ern ­
stein.

Joins West U nion Bank
Lee Pape, 34, a native of F ay ette
County, w ill join th e F a rm e rs Savings ^
Bank, W est Union, as its agri-business
rep resen tativ e, according to A drian
R adem aker, executive vice president.
Mr. Pape has operated a bulk oil v
and gasoline business in W est U nion
since 1962. Previously, he farm ed 380
acres in th e area. He w ill join the
b ank on F e b ru a ry 1.

lian Iters Visit M e x ic o

INSTALLMENT LOAN

FLOOR M A T S
Heavy Corrugated Paper
Placemats
Scratch Pads
Napkins
Farm Record Books
Coasters
Litterbags
Desk Pads
Shopping Bags
For More Details Write

Independent Products
Corporation
Phone 612/532-3207
ONAMIA, MINNESOTA 56359
N o rth w e s tern

B anker,

N ovem ber,


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

1968

A G R O U P of Io w a b a n k e rs a n d th e ir w iv e s v is ite d M exico la s t m o nth, sp e n d in g live
d a y s in M exico C ity a n d fo u r d a y s in A capulco. T he m en to o k tim e o u t in A capulco to
v is it th e B anco de Com ercio, w h ich is one o f M exico’s la rg e s t b a n k s w ith 432 m ain
offices a n d a n u m b er of b ra n c h e s. A ll a c c o u n ts a re in s u re d b y th e B a n k of M exico w hich
in tu r n is su p p o rte d b y p r iv a te e n te rp ris e . P ic tu r e d a t th e b a n k a re : S e a te d — Dr.
R o b e rt G. M oore, d ir., D u n la p S a v in g s. S ta n d in g ( le f t to r i g h t ) — F re d A. K e e p f, v.p., 1st N a tl., H a m p to n ; A lb e rt E. Tom s, exec. v.p. & cash., M ingo T&S; L. T. H a rla n , v.p., A'
H illsb o ro S a v .; G eorge D. S e tzle r, exec. v.p. & cash., P e te rs o n S ta te ; M ig u e l B rian o
R incon, a n official o f th e h o st b a n k , a n d B en H . T ie tje n s , cash., T eeds G rove Sav.

107

O C IR
P

b e s t c o is b e s
jz o r

a

%

b a p p y h o lid a y

VALLEY B A N K a n d T R U S T C O M P A N Y
D e s M o i n e s , locoa

M erabea


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

F e ô e c a l D e p o s it In s u a a n c e

C o c p o c a tio n

N o rth w e s te rn

B an ker, D ecem ber,

19

68

108

In the

DIRECTORS 9
A n y M ore Q uestions?

H ow G lad I Am

M istress: W hy don’t you light the
fire?
Maid: Because th e re a in ’t no coal.
M istress: W hy d id n ’t you let me
know before?
Maid: Because we had some before.

W ife—“I see by the paper th a t the
concert we attended last n ig h t w as
a trem endous success.”
H usband—“I d id n ’t realize we en­
joyed it so m uch.”

The M ajor T hird
“Helen is tw o-thirds m arried to
Bob.”
“R eally?”
“Yes, sh e’s w illing and the p reach er
is w illing.”

Those W ere the Days
An oldtimer is one who remembers
when the village square was a place
instead of a person.

I N D E X OF
ADV ER TISER S
D E C E M B E R , 1968
A c o r n P r i n t i n g - C o m p a n y ............................... 106
A m erican N ational B a n k an d T ru st
C o m p a n y —- C h i c a g o ..........................................101
A m erican N atio n al B a n k an d T ru st
C o m p a n y — S t. P a u l .......... 58, 60, 62, 63, 65
A m erican T r u s t a n d S av in g s B a n k —
D u b u q u e .................................................................. 89
B a n k B u ild in g a n d E q u ip m e n t
C o r p o r a t i o n ....................................................... 7-8
B a n k e r s T r u s t C o m p a n y — D e s M o i n e s . . 86
B a n k I n v e s t o r s ....................................................... 94
B a n k o f M o n t r e a l .................................................. 12
B e c k e r a n d A s s o c i a t e s ...................................... 44
B l a c k S a l e S y s t e m ................................................
4
C a u s e w a y I n n R e s o r t ........................................ 22
C entral B an k and T ru st C om pany—
D e n v e r ...................................................................... 71
C e n t r a l N a t i o n a l B a n k — C h i c a g o .......... 51
C en tra l N atio n al B a n k and T ru st
C o m p a n y — D e s M o i n e s ............................. . 99
C h a s e M a n h a t t a n B a n k ................................... 26
C h em ical B a n k N ew Y o rk T r u s t
C o m p a n y .................................................................. 37
C h i l e s & C o m p a n y ................................................ 7 6
C ity N a tio n a l B a n k an d T r u s t
C o m p a n y — K a n s a s C i t y .............................. 24
C om m erce T ru st C o m pany— K a n sa s
C i t y .............................................................................. 97
C o m m e r c i a l D i s c o u n t C o r p o r a t i o n . . . . 10
C o n tin e n ta l Illin o is N a tio n a l B a n k
a n d T r u s t C o m p a n y .................................. 56 -5 7
D a v e n p o r t , F . E ., & C o ............................. 7 6, 100
D e l u x e C h e c k P r i n t e r s , I n c ............................ 45
D e n v e r U. S. N a t i o n a l B a n k ......................... 69
D i e b o l d , I n c ................................................................. 41
D o a n e A g r i c u l t u r a l S e r v i c e , I n c ................. 18
D r o v e r s N a t i o n a l B a n k ................................... 93
E a s tm a n K o d a k C o m p an y — B u sin ess
S y s t e m s M a r k e t s D i v i s i o n ....................... 43
F a r m B u s i n e s s C o u n c i l ............................20, 106
F i r s t M i d A m e r i c a I n c .................................. 77, 91
. 109
F i r s t N a t i o n a l B a n k —-C h ic a g o
. 70
F i r s t N a t i o n a l B a n k — D e n v e r ..........
. 59
F ir s t N a tio n a l B a n k — M in n eap o lis
. 79
F ir s t N atio n al B a n k — O m aha . . . .
. 59
F i r s t N a t i o n a l B a n k - — S t. P a u l
F i r s t N a tio n a l B a n k — S ioux C ity . .
.105
Northw estern

Banker,

Novem ber,


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

1 9 68

“ M e F ir s t ”
Wife (on a boating excursion) : If
the boat floundered, wbo would you
save first, the children or me?
H usband: Me.

P riorities
Visitor: Well, Joe, how do you like '
your new little sister ?
Joe: Oh, she’s all right, I guess.
But there are lots of things we needed
worse.

It W asn't Funny

Daughter (to father) : Daddy dar­
ling, Jack and I love each other, and
we’ve come to ask your consent. W e’ve
been married to each other for a
month, so we’re sure we’ll be happy.

Little Bobby ran to bis mother, sobbing as though his heart would break.
“Why, w hat’s the matter, Bobby,”
asked bis mother.
“Ob, daddy was banging a picture
and he dropped it on his toes,” an­
swered Bobby between sobs.
“Why, that’s nothing to cry about.
You should laugh about that,” she
said.
“I did,” Bobby answered.

F ir s t N atio n al B an k and T ru st
C o m p a n y — L i n c o l n ........................................... 85
F ir s t N atio n al B an k an d T ru st
C o m p a n y — T u l s a .............................................. 39
F i r s t N a t i o n a l C i t y B a n k — N e w Y o r k . . 13
F . M D esign and C o n stru ctio n
C o m p a n y .................................................................. 4 0
G r o s s , K i r k , C o .......................................................... 42
H a r r i s T r u s t a n d S a v i n g s B a n k ............. 39
H a w k e y e N a t i o n a l L i f e I n s u r a n c e C o .. .1 0 0
H e l l e r , W a l t e r E ., & C o ....................................... 47
H u m m e r , W a y n e , & C o .......................................106
In d e p e n d en t P ro d u cts C orp o ratio n ....1 0 6
I o w a - D e s M o i n e s N a t i o n a l B a n k .............. 110
I o w a L e g a l B l a n k & P r i n t i n g C o ................106
I o w a G r o w t h I n v e s t m e n t C o m p a n y . . . . 88
L a S a l l e N a t i o n a l B a n k .................................. 103
L a w r e n c e W a r e h o u s e C o m p a n y ............... 11
L e F e b u r e C o r p o r a t i o n ...................................... 25
M an u factu rers H a n o v er T ru st
C o m p a n y ................................................................. 1 7
M a r q u e t t e N a t i o n a l B a n k .............................. 23
M e r c a n t i l e T r u s t C o m p a n y ............................ 14
M erch an ts N atio n al B a n k — C edar
R a p i d s ......................................................................
2
M i d l a n d N a t i o n a l B a n k ................................... 55
M i n n e s o t a C o m m e r c i a l M e n ’s
A s s o c i a t i o n ............................................................ 63
M o s l e r S a f e C o m p a n y ........................................ 67

N a t i o n a l B a n k o f C o m m e r c e ....................... 83
N a t i o n a l B a n k o f W a t e r l o o ......................... 95
N a t i o n a l B o u l e v a r d B a n k ..............................
5
N e b ra s k a N a tio n a l L ife In s u ra n c e
C o ..................................................................................... 84
New Y ork T erm in al W arehouse
C o m p a n y .................................................................. 104
N o r t h C e n t r a l C o m p a n i e s .............................. 19
N o r t h e r n T r u s t C o m p a n y B a n k ...............
3
N o rth w e ste rn N a tio n a l B a n k —
M i n n e a p o l i s .......................................................... 55
N o r th w e s t e r n N a tio n a l B a n k — S ioux
C i t y .............................................................................. 92
O m a h a N a t i o n a l B a n k ...................................... 75
S c a r b o r o u g h & C o m p a n y .................................
6
S c h i m m e l H o t e l s ..................................................... 82
S e c u r i t y E l e c t r o n i c s , I n c ................................... 44
S t o c k y a r d s N a t i o n a l B a n k — O m a h a . . . . 81
S t u d l e y S h u p e r t & Co., I n c .............................. 18
T a l c o t t , J a m e s , I n c .............................................. 21
T e n s i o n E n v e l o p e C o r p o r a t i o n ...................102
T o y N a t i o n a l B a n k ............................................. 96
U n i t e d C a l i f o r n i a B a n k ................................... 49
U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . 78
U. S. N a t i o n a l B a n k — O m a h a .................... 72
V alley B a n k a n d T r u s t C o m p an y —
D e s M o i n e s ..............................................................107
V a n H o r n e I n v e s t m e n t s , I n c ......................... 82
Z i e g l e r , B. C., & C o ................................................ 16

Please, D addy

C O N V E N T IO N S
1969
Ja n u a ry 29-30 — Illin o is B an k ers I n ­
stallm en t L ending C onference,
S pringfield.
F e b ru a ry 10-12— A BA A nnual M id­
w in ter T ru st C onference, W al­
dorf-A storia, New Y ork.
M arch 6-7—ABA N a tio n a l B ank M ar­
ketin g C onference, M a rrio tt, A t­
lanta.
M arch 10-12 — ABA 21st N ational
C red it C onference, Sheraton-C hi­
cago.
M arch 17-19—in d e p e n d e n t B ankers
Assn., 39th A n n u al C onvention,

*

1^.

r

H o te l Sahara, Las Vegas.
M arch 27-29— ABA N a tio n a l In sta ll­
m en t C re d it C onference, H ilto n ,
San F rancisco.
M arch 30 - A p ril 1—Assn, of R eserve
C ity B ankers, 58th A nnual C on­
vention, A rizona B iltm o re, P h o e ­
nix.
A p ril 14-17—N a tio n a l Assn, of S uper­
visors of State B anks, 68th A nnual
C onvention, C hase-Park Plaza, St.
Louis.
A p ril 15-17— B ank PR M A R egional,
H o te l Savery, Des M oines.
M ay 18-20— B ank A d m in istra tio n In ­
stitute, N o rth e rn R egional, H otel
S heraton-S chroeder, M ilw aukee.

1

s,

We want you to be merry.

Your correspondent friends in Division“F"atThe First

The First National B ank o f Chicago ÉSJj)
Member Federal Deposit Insurance Corporation


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

W ith all
our best wishes
for a happy,
prosperous 19691

IOWA-DES MOINES
NATIONAL BANK
Sixth and Walnut, Des Moines 5 0 3 0 4 • 284 -86 86
Member Federal Deposit Insurance Corporation


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