Full text of The Northwestern Banker : December 27, 1965, No. 945

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No. 945

Des Moines, Iowa

December 27,1965

Predict Interest Rate Battle
In Greater Twin Cities Area
' “ There could be an interest
rate battle between banks and
savings and loan associations
in the Twin Cities like the one
that occurred in the 1920s.”
This was the prediction
made by Harold W. Greenwood,
Jr., president of the Savings
and Loan League of Minnesota,
and president of Minneapolis
Federal Savings and Loan As­
sociation, as higher interest
rates spread among banks in
the Minneapolis-St. Paul area.
Action, thus far, has been
among banks holding national
charters, since present maxi­
mums for Minnesota state banks
are set at 4 per cent on time de­
posits up to $100,000 and 4% per
cent on those of $100,000 or
more. Clarence Lodahl, acting
commissioner of banking had
said that he does not intend to
take any action pending the ap­
pointment of a new banking com­
missioner. Former Commissioner
John Chisholm resigned Decem­
ber 1.
Despite Deputy Lodahl’ s
statement, some sources feel
that he may call a special hear­
ing (which takes 30 days notice)

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and perhaps seek an interest
rate for state banks that would
equal the new rates authorized
for national banks. Appointment
of a new commissioner may be
held up because the qualified
candidates prefer not to get
involved in the rate hikes.
National City Bank of Minne­
apolis was reported to be offer­
ing the highest interest rate in
the area in giving a full 4% per
cent interest on 90-day savings
certificates in units of $100.
Compounded every 90 days from
date of deposit, they will give
an annual yield of 4.90 percent.
Among the other major banks,
First National, Northwestern Na­
tional and Midland National in
Minneapolis, and Northwestern
National in St. Paul hiked rates
on passbook savings from 3 to
4 per cent. Interest on 90-day
certificates were raised from 4
to 4% per cent. First National
dropped the minimum price of
savings certificates from $100
to $19.99. The new interest rate
is guaranteed for five years.
At press time, the Marquette
National in Minneapolis,and the
First National and American Na­

tional in St. Paul had not raised
interest rates. Farmers and Me­
chanics in Minneapolis was
considering going to 4 per cent
on passbook savings.
Outside of the Twin Cities,
it is reported that banks in Man­
kato have increased their rates
to 4 per cent on passbook and
4% per cent on CDs.
Savings and loan a s s o ci­
ations in the Twin Cities are
expected to increase their rates
on savings accounts and certifi­
cates by the first of the year.
Under a variable dividend plan,
S & Ls are authorized to pay an
extra dividend on regular sav­
ings of $1 ,000 or more that have
been held for one year. This ex­
tradividend and regular dividend
may not exceed 4% per cent at
present. A certificate plan au­
thorizes S& Ls to accept special
accounts in multiples of $1,000
for one year or more and pay 4%
per cent. Each S & L may set
its own minimums, as long as
it is $1,000 or more.
As the rate hikes continued,
the Federal Reserve sent tele­
grams to all member banks
stating that the board’ s recent
increase to 5% per cent maxi­
mum rate on time money was
instituted “ with the confident
expectation that every member
(Continued back page)

yea r o f prom ise lies ahead.

Join us in building fo r tomorrow.
NATIONAL BANK AND TRUST COMPANY

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M em ber Federal Deposit Insurance Corporation

iour ana i ravei division o
the bank also has moved into
its new quarters in the First
National Bank building.

IOWA NEWS

ATLANTIC: Bill Beatty has re­
signed as executive vice pres­
ident of Clarke County State
Bank, O sceola, effective Febru­
ary 1, to accept a position as
vice president of Atlantic State
Bank.
COLFAX: First National Bank
has purchased the Farmers Sup­
ply Store for possible future ex­
pansion. No immediate plans
have been announced.
DES MOINES: Robert K. Popple,
v ice president, and Mel Marsh,
assistant cashier, Bankers Trust
Company, were presented 25-year
watches at the bank’ s Christmas
party.
DES MOINES: Crawford C. Hubbell has resigned as a vice pres­
ident of the Bankers Trust Com­
pany, effective December 31,
1965. He continues as a director.
Mr. Hubbell will devote a major
share of his time to the CheckAll Valve Manufacturing Com­
pany, Des Moines, and to other
business interests in Des Moines.
DES MOINES: Des Moines Chap­
ter of A.I.B. has scheduled four
new cla sses all of which will
begin the first week in January.
The four cla sses, all scheduled
for 14 weeks, and the meeting
place and time for the initial
session of each, are as follow s:
Principles of Bank OperationsDirectors Room, Central Nation­
al Bank, Tuesday, January 4,
4 p.m. to 7 p.m.; Fundamentals
of Bank Data Processing-Lunch
Room, Central National Bank,
Tuesday, January 4, 4 p.m. to
7 p.m.; Commercial Law (Uni­
form Commercial Code)-Lunch
Room, Central National Bank,
Thursday, January 6, 4 p.m. to

7 p.m.; Analyzing Financial
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Statements-Directors
Room, Cen­
Federal Reserve Bank of St. Louis

tral National Bank, Thursday,
January 6, 4 p.m. to 7 p.m. Fur­
ther information may be obtained
by contacting Lloyd Querry,
assistant cashier, Central Na­
tional Bank, Des Moines, A.I.B.
education chairman.
DES MOINES: William H. Kovacevich, treasurer of the General
Mortgage Corporation of Iowa,
has been elected president of
the Des Moines Mortgage Bank­
ers Association. Other officers
are Paul Ashby, vice president,
Central National Bank, vice pres­
ident, and Willard Sutcliffe, State
Federal Savings
and Loan,
s ecretary-treas urer.
PERRY: First National Bank
has promoted Mrs. Agnes Malcolm
and Marvin L. Mahr, Jr., to
assistant cashiers.
REMSEN: John T. Carter, recent
graduate of Iowa State Universi­
ty, Ames, has joined the staff of
the First Trust and Savings Bank.
N E B R A SK A NEWS

GENEVA: An application for
a new state-chartered bank
has been granted to John R.
Bixby. The bank will be known
as the Fillmore County Bank
and Mr. Bixby will be president.
LINCOLN:
Richard
Kearns,
22, has been elected cashier
of Lincoln Bank South. He has
been operations manager.
LINCOLN: Directors o f the
First National Bank & Trust
Company have promoted R ich­
ard Frizell to assistant vice
president in the trust and in­
vestment department. New as­
sistant cashiers are: Gordon
Kuhn, commercial loans; Ger­
ald Hoi scher, mortgage loans,
and Dwain C. Carlson, trust
and investments. The Lincoln

OMAHA: Among new 10th Fed
appointments made last week
was John W. Hay, Jr., presi­
dent, Rock Springs National
Bank, Rock Springs, Wyoming,
to Omaha branch board, replac­
ing R.E. Barton, president,
Wyoming National Bank of
Casper.
OMAHA: Grand opening for West
Omaha National Bank’ s new
building at 90th and Dodge will
be January 14-15, according to
J. Peter Jeffrey, executive vice
president.
OMAHA: South Omaha Stock
Yards National Bank has raised
rates to 4% per cent on savings
certificates of deposit. Rate
for one year will be 4% per
cent. Omaha National Bank and
United States National Bank
had previously raised their
rates to 4% and 4%. First Na­
tional Bank is remaining at
4 per cent.
OMAHA: Richard Walker, the
president of Byron Reed Com­
pany, Inc., Omaha, has been
elected to the board of direc­
tors of The United States Na­
tional Bank.
OMAHA: Archer Daniels Mid­
land Company has announced
plans to build a large soybean
processing plant in the Omaha
area. The company now has a
grain merchandising office in
Omaha and nine alfalfa dehy­
drating plants in Nebraska.

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MINNESOTA NEWS

BLUE EARTH: The Blue Earth
State Bank is observing its 60year anniversary as a statechartered bank.

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HOPKINS: Northwestern Nation­
al Bank has promoted Richard
Klingen from assistant vice
president to vice president and
named Charles Kersten and
W. Morton assistant cashiers.
MARSHALL: Arlen Krugerud and
Douglas Anderson have been

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ñáméaas

ou can be sure your custom ers’

Western State Bank, Marshall.
MINNEAPOLIS: William B. Bell
has been advanced to assistant
vice president of the Second
Northwestern National Bank.

Sioux City collection items
w ill have our careful attention.
Send us those drafts, stocks, bonds,
notes, coupons and all non-cash items
for fast, personal service.

MINNEAPOLIS: The Fed has
promoted William C. Bronner
from assistant vice president
to vice president in charge of
fiscal agency functions. He
replaces Melvin Holmgren who
retires at year-end. Frederick
Cramer has also been advanced
to vice president. John McDon­
ald, assistant vice president,
was named cashier. Ronald
Graham was named general
counsel.

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RUSH CITY: State Bank of Rush
City will build a new building in
1966.
SOUTH ST. PAUL: Charles W.
Messenger has been advanced
by the Stock Yards National
Bank from cashier and comp­
troller to vice president and
cashier.
WILLMAR: Paul Vollan, Jr.,
former managing officer of the
Guarantee State Bank, St. Paul,
has resigned to join the Citi­
zens National Bank as execu­
tive vice president.
CO LO RADO NEWS

AURORA: Peoples Bank has
started an expansion and re­
modeling program which will
include a one-story addition
to the bank building.

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DENVER: Robert P. Zahller,
vice president, First National
Bank, has been named a direc­
tor of First National, Southglenn,
an affiliate of the First.
DENVER: William M. White,
Pueblo, a widely known Colorado
banker and business executive,
has been elected as a director
of the First National Bank. He is

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NATIONAL BANK

S IO U X CITY, IO W A

chairman and president of the
Minnequa Bank of Pueblo, the
First National Banks of Ala­
mosa, Durango, Salida, and the
Bank of Aspen.
DENVER: American National
Bank has named R. C. Kennedy
as vice president and cashier,
and John W. Wickham as comp­
troller.
DENVER: Don M. Whiteman has
been advanced from executive
vice president to president of
the First National Bank of North
Glenn.
DENVER: The Colorado Bank
Board has concluded its hearing
on the application of the Erie
Bank to move to the Villa Italia
Shopping Center under the name
of the Villa Bank of Jefferson
County. D ecision has not been
announced.
DENVER: Fred Neef, Denver
attorney, is a new director of
the Colorado State Bank.
DENVER:
Funeral
services
were held last Monday for Har­
old Kountze, 80, honorary chair­
man of the Colorado National
Bank.

•

M EM BER F.D.I.C.

held by the South Dakota banking
department to allow the First
State Bank, Armour, to estab­
lish a branch in Delmont.
ELK POINT: O. D. Hansen,
president of The Bank of Union
County, has sold his majority
stock in the bank to Erling
Haugo and associates of Sioux
F alls. Mr. Haugo is president
of the Valley National Bank.
MILLER: First National Bank
has advanced Howard Peterka
from vice president to executive
vice president; Dwayne Halse
to vice president, and Robert
Hager to assistant cashier and
auditor.
ROSLYN: The Farmers and
Merchants State Bank recently
held its 10th annual open house
celebration. Among other door
prizes, 10 silver dollars were
given away to youngsters who
visited the bank.
NORTH DAKOTA NEWS

HILLSBORO: Harry Eisenbeis
has been advanced to president
of the Northwestern State Bank.
He also serves as cashier.
MONTANA NEWS

DENVER: First National Bank
directors have voted to trans­
fer $2 million from undivided
profits to surplus, raising the
latter to $19 million.
SOUTH DAKO TA NEWS

DELMONT: Hearings have been

L IN C O L N

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•

GREAT FALLS: John S. Hart­
well has been elected cashier
of the First Westside National
Bank. Effective January 1,
Robert M. Pancich will begin
his duties as assistant cashier
of the Metals Bank and Trust
Company, Butte.

...Experts in Mortgage Loans

FIRST NATIONAL BANK & TRUST COMPANY OF LINCOLN
12th & N Street • L IN C O L N , N E B R A S K A • Member: F.D.I.C.

■ Il

(Continued)

bank would exercise prudence
in availing itself of the enhanced
flexibility in competing for
funds.”
It is anticipated by some
authorities that' the Board of
Governors of the Federal R e­
serve will impose formal new
restrictions on time deposits
and certificates, particularly
affecting s mailer-denomination
CDs.
L A T E NEWS

WALTHILL, NEBR.: James B.
Rossiter w ill advance to the
presidency of First National
Bank January 1, succeeding
P.H. Langenberg, who is re­
tiring. Mr. Rossiter purchased
control of the bank in January,
1965. Mr. Langenberg has been
with the bank more than 52
years. Harold E. Matney, of
Walthill, joined the bank staff
several weeks ago.
N A TIO N A L NEWS

CHICAGO: Several promotions
and assignment changes have
been announced, effective Jan­
uary 1, at the Federal Reserve
Bank of Chicago. Laurence H.
Jones, vice president and cash­
ier, will be responsible for
special assignments from the
president and first vice presi­
dent. He will relinquish the
title of cashier but will continue
to be senior officer in charge of
several functions. Carl E. Bier-

OVER
10,000
financial institutions
across the country
buy our equipm ent and
services every year.

has been named cashier.
CHICAGO: Most of the remodel­
ing work has been completed on
Northern Trust Company’ s “ old
building” on LaSalle Street,
and the savings department has
been opened on the ground floor
level.
CHICAGO: Don H. McLucas and
NormanMcClave, Jr., have been
named senior vice presidents at
Northern Trust Company. Named
vice presidents were George B.
Milnor, Robert P. Billingsley,
Robert C. Nihan, Robert G.
Dederick and Robert M. Wilson.
DALLAS: Karl Hoblitzelle has
been named chairman of the
board, emeritus, of the Republic
National Bank of Dallas. James
W. Ashton has been named chair­
man of the board and chief ex­
ecutive officer, and James W.
Keay has been elected president
and a director.“ *
KANSAS CITY: Ronald G. Garthwaite has been appointed direc­
tor of public relations at City
National Bank and Trust Com­
pany. For the past five years he
was assistant cashier and di­
rector of advertising and public
relations for City National Bank
and Trust of Rockford, Illinois.
LOS ANGELES: Richard J.
Flamson, III, vice president of
Security First National Bank,
has been named head of the
national division, which includes
correspondent banking relation­
ships throughout the nation.
WANTED
SM A L L BANK
Our client, a native o f Minnesota and
a su ccessful businessman, wants to
buy a small bank for investment,
willing to retain present management.
A ll correspondence and negotiations
will be strictly confidential. Submit
current statement, number of shares
offered and price net to you.

BANKERS SERVICE
Corporation

CEDAR RAPIDS, IOWA 52406

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

Jr., senior vice president in the
bond department of Prudential
Life Insurance C o., has been
elected executive vice president
and w ill oversee the entire in­
vestment area.
NEW YORK: Harry F. Schroeder
has been named vice president
and senior controller of Bankers
Trust Company. Ashley Weare
has been named controller.
NEW YORK: William T. Hayes
and Samuel Lord, Jr. have been
named vice presidents in the
corporate trust department of
First National City Bank. Leon­
ard Joy and JohnF. Lennon were
named vice presidents. Both are
in the trust division.

•jt

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NEW YORK: J. Howard Laeri
has been elected vice chairman
of the board of First National
City Bank. Succeeding him as
executive vice president in
charge of the national division
is Edward L. Palmer. William
I. Spencer has been named the
executive vice president of a
new specialized industry di­
vision.

WANT ADS

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

POSITION AVAILABLE
Need managing officer at once
for northeast Iowa bank. Stock
available. Salary open. Write in
confidence to HCH, c /o The
NORTHWESTERN BANKER, 306
15th, Des Moines, Iowa 50309.
POSITION AVAILABLE
Excellent opportunity for young
man to serve as Agricultural Rep­
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Write File WKC, in care of the
NORTHWESTERN BANKER, 306
Fifteenth St., Des Moines, Iowa,
50309.
FOR SALE
Cummins Model 300 Electric Per­
forator, reconditioned. Box LSD,
NORTHWESTERN BANKER, 306
15th St., Des Moines, Iowa 50309.

N o. 945 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines,
Iowa 50309. Subscription 50^ per copy, $4 per year. Second c la s s postage paid at Des Moines, Iowa. Address all mail

subscriptions, change of address, Form 35 79, manuscripts, mail items to above address.
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