Full text of The Northwestern Banker : December 20, 1965, No. 944

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No. 944

Des Moines, Iowa

December 20,1965

Iowa Department Opposes New
Boost in Tim e Money Interest Rates
“ I am definitely opposed to
an increase in the present 4 per
cent permissible rate that can
be paid under Iowa law on sav
ings deposits and CD’ s , ” John
Chrystal, Iowa superintendent
of banks, has reported to the
Northwestern Banker. He stat
ed further, “ I feel very strongly
that such an upward move is
joining the race to inflation and
and I have no intention of asking
for a higher rate.”
The Iowa law setting such
rates
(528.11)
specifically
states that maximum interest to
be paid on savings and time
money is 4 per cent, and further
on in the same section says that
funds on which higher rates are
paid must be considered bor
rowed funds and carried ac
cordingly.
Some banks in Iowa and
other sections of the country
have been using alternate plans
to pay a higher rate for money.
Instead of issuing CD’ s, they
issue the bank’ s promissory
notes or bonds to customers at
rates up to 4.6 per cent. These
funds reportedly are not subject

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to Fed regulation or regular re
serve requirements, nor FDIC
premium payment. The Iowa
superintendent has requested a
ruling from the FDIC as to
whether such notes or bonds are
protected by FDIC.
Laws are not as specific in
other states in the upper mid
west as they are in Iowa con
cerning permissible interest
rates. They either have no law
governing
savings
interest
rates, thus leaving such juris
diction up to rates set by the
Fed and FDIC, or their laws
are written to give the state
superintendent discretion to
meQt rates set by the Federal
Reserve Board and FDIC, if
desired.
The Nebraska law was
changed to conform to the Fed
and FDIC new permissive
ceiling rate of 5% per cent on
December 7, by directive from
Henry Ley, director of banking.
The Omaha National Bank and
United States National Bank
of Omaha on December 18 an
nounced that effective Decem
ber 15 they would pay 4 per

cent on regular savings, 4% per
cent on 90-day CD’ s, and 4%
per cent oiffeone-year CD’ s.
Previously, both banks were
paying 3 per cent on savings
accounts. Within two days,
First National Bank and Trust
Company and National Bank of
Commerce, both of Lincoln, an
nounced they would pay 4% per
cent on one-year CD’ s. The two
banks already were paying 4
per cent on savings since last
January, the rate presently con
tinued for passbook savings
and 90-day CD’ s.
NATIO N AL NEWS

NEW YORK: Chemical Bank New
York Trust directors have e le c
ted a new senior management
team effective January 1, it was
announced by Harold Helm,
Chairman, who reaches manda
tory retirement age on Decem
ber 31. William S. Renchard,
president, will succeed Mr. Helm
as chairman and chief executive
officer. Hulbert S. Aldrich con
tinues as vice chairman and next
in line of authority. Howard W.
McCall, now vice chairman, will
become president. John L. Gib
bons will continue as chairman
of the trust committee and will
assume additional administra
tive responsibilities.
(C ontinued on back p a ge)

L IN C O L N

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FIRST NATIONAL BANK &TRUST COMPANY OF LINCOLN
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IOWA NEWS

CEDAR RAPIDS: The Cedar
Rapids area chapter of AIB has
scheduled a seminar series
concerning the Uniform Com
mercial Code. The series, set
to begin February 1, will be
conducted by three professors
from the University of Iowa
College of Law.
DES MOINES: Miss Dora Sprin
ger, secretary in the office of
the Iowa Bankers Association,
was struck by an automobile at
48th and University last week
and was hospitalized with a
broken leg. She is in Room
506, Methodist Hospital in
Des Moines.
DES MOINES: Sherry Fisher,
vice president of Central Na
tional Bank & Trust Company,
has been designated as key
note speaker for a series of
seven meetings to be held in
Iowa in January to promote
tourism. The meetings w ill be
co-sponsored by the Iowa De
velopment Commission and the
Iowa
Travel
Development
Council. All Iowa bankers are
invited to attend. Details of
the program will appear in
the
January issue of the

NORTHWESTERN BANKER.
DES MOINES: A new office of
the First Federal State Bank

Call

Jay Bordewick
fo r . . .
P e r s o n a l A tte n tio n
to A l l Y o u r
C orrespon den t N eeds

opened last Tuesday at 8590
Hickman Road in Clive. Open
house for the new office has
been scheduled until the first
of the year.
FORT DODGE: William C. McCarten has been named a mem
ber of the board of directors of
The State Bank, filling the va
cancy left by the death of John
C. Brown.
OTTUMWA: Roscow Stewart,
70, president of the Ottumwa
Mercantile Company and pres
ident of the Graham Depart
ment Stores Company, died
recently. He was a member of
the board of directors of the
First National Bank.
ROCK FALLS: The American
State Bank, which closed Nov
ember 1, has been given to the
City of Rock Falls with the
stipulation that it not be used
as a bank building for at least
10 years.
N E B R A SK A NEWS

HOLDREGE: Mrs. Ann Holt,
receptionist
and
executive
secretary at the First Nation
al Bank for 20 years, will re
tire effective December 31.
LINCOLN: Increase of First
National Bank & Trust Com
pany of L incoln’s capital and
surplus accounts to a total of
more than $10 million would
be accomplished through a
stock dividend approved by
the bank’ s directors Tuesday.
Stockholders will meet Jan. 18.
OMAHA: The West Omaha
National Bank moved into its

new quarters in the Lippold
Building,
90th and Dodge
Streets, December 13. William
Kizer, executive vice presi
dent of Central States Health
and Life Insurance Company,
Omaha, has been elected a
director of the bank. Gerald
Schnathorst has been named
an assistant vice president in
charge of the personal loan
department.
OMAHA: Thomas C. Quinlan
has been named executive vice
president at Omaha National
Bank, heading a list of several
promotions. Howard M. John
son, E. Stanton Miller, II and
Marvin R. Werve were named
senior vice presidents.
Robert E. Larsen and Mich
ael B. Yanney were named vice
presidents and John H. Mitten
was elected assistant cashier.
WAUSA: Residents of Wausa
will honor N.T. (Nobby) Tiemann, president of Wausa’ s
Commercial State Bank . and
gubernatorial candidate, at a
recognition night January 13.

COLOGNE: State Bank held
open house yesterday (Sun
day) in its new building.

DULUTH: William A. Mars and
Roy I. Nilsen have been elected
directors of First American Na
tional Bank. Mrs. Mars is vice
president in charge of sales for
W. P. & R. S. Mars Company,
Duluth. Mr. Nilsen is vice pres
ident and general manager of
Northwest
Paper
Company,
Cloquet.

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K E E P U S IN M IN D

WYOMING NEWS

W E ’R E E A S Y T O F IN D

CHEYENNE: Richard W. Wood
ward has been elected assistant
cashier and Jack E. Cathcart
has been elected assistant
auditor at the American Nation
al Bank.

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283-2421
BANKERS TRUST COMPANY
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M e m b e r Fe d e ra l D e p o s it In s u ra n ce C o rp o ra tio n

HOMER JENSEN

L a rg e st L o ca lly -O w n e d Bank in D e s M oines

GOLDEN
VALLEY:
Golden
Valley State Bank has increas
ed its capital stock by two and
one half times to $250,000 by
stock dividend.

J. Cramer has been promoted
to vice president from a ssist
ant vice president and John
A. MacDonald has been promot
ed to cashier.

HARMONY: Leonard Skaalen,
executive vice president, Onsgard State Bank, Spring Grove,
and Gus Carlson, Jr., execu
tive vice president of First
National Bank, Kiester, have
bought control of the Harmony
State Bank. Mr. Skaalen will
become president at Harmony.
As previously announced, Don
ald Jennings of Waukon will
replace Mr. Skaalen at Spring
Grove.

PIERZ: Farmers and Merchants
State Bank has increased its
capital stock from $50,000 to
$75,000 by stock dividend.

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7

HOYT LAKES: The resignation
of Thomas Stockert from his
position at American National
Bank, Valley City, N.D., has
been announced. He becomes
cashier of the First National
Bank, Hoyt Lakes. Both banks
are affiliated with Northwest
Banc or por ati on.
MINNEAPOLIS:
J.
Patrick
Ferry has been elected an as
sistant cashier at the Fourth
Northwestern National Bank.

MINNEAPOLIS:
Melvin
B.
Holmgren, vice president of the
Federal Reserve Bank of Minn
eapolis, has elected to retire
at the end of the current year
and William C. Bronner, a ssist
ant vice president, has been
named to succeed Mr. Holmgren
as vice president. Frederick

YOUNG AMERICA: State Bank
of Young America has doubled
its capital stock to $120,000 by
sale of new stock.
MONTANA NEWS

LIVINGSTON: Plans for a new
walk-up and drive-up windows
and inside parking at First
National Park Bank have been
announced. Completion date
for the remodeling project is
March 1, 1966.
WHITE SULPHUR SPRINGS:
Joe E. Stalcup, vice president
and cashier at First national
Bank, died recently at the age
of 61.
NORTH DAKOTA NEWS

BERTHOLD: American State
Bank, Minot, has opened a new
branch station in Berthold.

COLUMBUS: Herbert
dal, president of the
State Bank, died in
hospital recently at
of age.

L. ThornColumbus
a Crosby
66 years

COLORADO NEWS

DENVER: Roger D. Knight, Jr.,
chairman of the Denver U. S.
National Bank, last week was
awarded one of two Loretto
Citations presented by Loretto
Heights College.
DENVER: Stockholders of the
17th Street National Bank met
behind closed doors last week
to discuss several proposals.
Steve McNichols, president and
chairman, would not discuss de
tails of the meeting, pending
approval of steps taken by
Comptroller of the Currency
James J. Saxon. Notice sent to
stockholders called for reorgan
izing the capital structure, a
change in the $1 par value of
the stock and a possible change
of location to the Villa Italia
Shopping Center. Previous ap
plications for a charter for a
new bank at the shopping center
have been rejected by state and
national authorities.
GOLDEN: Ross E. Price, an
employee of the First National
Bank since 1955, will retire
January 1, ending a banking
career dating back to 1920.
BANK WANTED
Preferably a bank with a ssets of $ 5
million or more in Southern Minnesota
or Northern Iowa.
Our client, an experienced Minnesota
banker, and associates are prepared
to invest up to $1 million for con
trolling stock in a suitable bank.
A ll correspondence and negotiations
will be strictly confidential. Submit
current statement, number of shares
offered and price net to you.

BANKERS SERVICE

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w ill have our careful attention.
Send us those drafts, stocks, bonds,

Serving Banks & Bankers Since 1948
1301 Register and Tribune Building
Telephone (515)244-3113
________Des Moines, Iowa 50309________

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YOUR STATE BANKERS ASSOCIATION
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SIO U X CITY, IO W A

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F. E. DAVENPORT & C O
OMAHA

N A TIO N A L NEWS
(C on tin u ed)

KANSAS CITY: Ronald G. Garthwaite, formerly with City Nation
al Bank and Trust Company,
Rockford, Illinois, has joined
City National Bank and Trust
Company, Kansas City, as di
rector of advertising.
CHICAGO: Walter A. Gatzert
has been advanced from vice
president to senior v ice pres
ident at American National
Bank and Trust Company. In
addition, eight were advanced
to vice president. The eight
were Stefan S. Anderson, L eo
nard I. Green, George E. Jacobsmeyer, Jack P. Katz, F.R.
Carver Nixon, Allen J. Marrinson, Milan G. Hiben and
Richard I. Roberts. The pro
motions headed a list of 23
advancements announced by
Robert E. Straus, chairman of
the board.
WHEN YO U R BA N K N E E D S
H EL P , YOU H A V E A N E E D
FO R E X P E R IE N C E D H ELP .

Don R. Ostrand
V ic e P r e s id e n t

Carl Bloom

Ralph Peterson

V ic e P r e s id e n t

Merv Aegerter
A s s i s t a n t V ic e P r e s id e n t

Bob Brown
A s s i s t a n t V ic e P r e s id e n t

FIRST NATIONALS
BANK OF O M A H A !
Member Federal Deposit Insurance Corporation ^
Sixteenth and Farnam ■ Omaha, N e b ra s k a M J

Always the First to Serve You! H H

NEW YORK: H. Lansing Clute,
Loren A. Erickson, E. Sherman
Adams and Robert W. Feagles
have been elected senior vice
presidents of First National
City Bank.
CHICAGO: John E. Drick,
senior vice president, has been
elected executive vice president
at the First National Bank.
Richard L. Thomas, vice presi
dent, was elected vice president
and general manager of the
bank’ s London Branch, Charles
Scholfield, assistant vice presi
dent, was elected vice president
and L eslie V. Bjork, assistant
vice president, was elected
vice president, heading a list of
28 additional promotions.
Homer J. Livingston, chair
man, has reported that the di
rectors have authorized the
transfer of $5 million from un
divided profits to the surplus
account.
CHICAGO: Robert K. Quinn and
Richard E. Smith have been e l
evated from assistant cashier
to assistant vice president at
LaSalle National Bank.
Clarke Coggeshall and John
Porta have been named vice
presidents of the Bank.
ST. LOUIS: Leigh A. Doxsee,
vice president of Chamber of
Commerce in St. Louis, will
join Mercantile Trust Company
January 1 as vice president in
market research.
KANSAS CITY: George E. Pow
ell, Jr., president of Yellow
Transit Freight Lines, Inc., has
been elected a director of First
National Bank. An additional

WHILES & COMPANY^
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M U N IC IP A L A N D C O R P O R A T E B O N D S
LISTED, U N L IST E D A N D L O C A L S T O C K S
412 Farm Credit Building, Omaha, Nebraska 68102
Phone 546-6677

stock dividend of 10,000 shares
will be paid by the bank when
shareholders approve an in
crease in the capital February
15, according to Taylor S.
Abernathy, chairman.
NEW YORK: Clement D. Gile,
Mortimer J. Gleeson, Corwin S.
Scott and Spencer N. Rose have
been elected vice presidents of
Morgan Guaranty Trust Com
pany.
MINNEAPOLIS:
C.
Bernard
Jacobs will advance from ex
ecutive vice president to pres
ident of the National City
Bank on December 31, suc
ceeding S. L. Jerpbak, 69, who
will become vice chairman of
the board and chairman of the
executive
committee.
Other
promotions include naming Pat
rick W. Colbert, Jr., and Don
ald M. Jerpbak as assistant
vice presidents.
MINNEAPOLIS: J. Cameron
Thomson, 75, who retired in
1959 as chairman of North
west Bancorporation, was re
ported late last week in satis
factory condition at St. Mary’ s
Hospital, Rochester, following
surgery for a brain tumor.

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Waterloo, Iowa

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944 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Digitized for
Moines, Iowa 50309. Subscription 50<£ per copy, $4 per year. Second c la ss postage paid at Des Moines, Iowa. Address all mail
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