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Oldest Financial Journal Serving The Central and W estern States Des Moines, Iowa NO. 1201 Will S&L Ruling Affect Regulation Q? Will the Federal Reserve Board Under the FH LB B’ s action, all change Regulation Q and increase S&L members which have the the interest rate on savings ac legal power to do so may issue counts from the current 4% on to existing savers of record as of passbooks and 5% on CD’ s of December 15, two-year to fiveless than $100,000? year certificates which bear a Following the Federal Home maximum interest rate of 6%. Loan Bank Board’ s ruling last week, allowing savings and loan associations to pay 6% on special new certificates, bankers were contemplating the next move by Federal supervisory authorities. A number of Washington sources expected the FDIC to lift the rates insured, nonmember banks and mutual savings banks may pay on These certificates may not be djeposits to counter the move made issued in amounts less than by the Federal Home Loan Bank $10,000. S&L’ s , whether or not Board. Even though the Fed has they have converted to deposit been opposed to a change in status, are authorized to issue rates for member banks, it is these certificates. However, no hard to see how it could hold out member institution will be per if the FDIC joined the FHLBB in mitted to issue certificates paying adjusting rates. Arthur Burns, Jr., the 6% rate after July 31, 1970. who will take over as chairman of In addition, a limit of 20% of the Federal Reserve Board on a S&L’ s savings as of November February 1, has indicated that 30, 1969, can be converted to the some changes . in Regulation Q new certificates between now and July 31. may be necessary. To insure against bunching up FHLBB Chairman Preston Martin of maturities, the Board has lim noted that S&L’ s are experiencing a difficult cash flow problem and ited the amount of savings that without action by the Board this could be converted to the new in any six-month problem will increase in the with certificates drawal period immediately ahead. period. Of the 20% of total sav December 29,1969 ings, only half this can be con verted to certificates which mature between January 1, 1972, and June 30, 1972. In any sixmonth period after June 30, 1972, only 5% of the 20% of savings could be converted to the certi ficates. Remaining unchanged, Mr. Martin said, are the regular ceilings which generally limit S&L’ s to paying 4%% interest on passbook accounts and 5%% on other certi ficate accounts. The safety of S&L’ s isn ’t in question, Mr. Martin said, be cause they have been hoarding large amounts of cash and other liquid assets against the expected withdrawals. This defensive stance, he remarked, is hampering their ability to make new mortgage loans. Moreover, he said, with drawals are inflationary because the money often goes into either consumer spending or financing of “ hot sectors” such as businessexpansion projects. Construction of more houses wouldn’ t be inflationary, Mr. Martin implied. “ While construc tion, labor and materials costs are up,” he said, “ they are cer tainly not at scarcity levels. In fact, unemployment in the con struction industry is almost twice that of the total labor force.” But (Continued on Page 4) The only correspondent Bank you’ll really ever need. ûû, $ 9 Central National Bank & Tru s t C om pany https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LOCUST AT SIXTH AVENUE. DOWNTOWN DES MOINES. PHONE 243*8181 MEMBER F.D.I.C. National in 196& and has been with the bank sin ce 1966. W e're here to help you get what you want IOWA-DES MOINES NATIONAL BANK O G A L L A L A : Jack Scott, associated with the Keith County Bank & Trust here since 1964, has been named executive vice president. Mr. Scott joined the bank dis agricultural repre sentative and later was named Vice president. Member Federal D eposit Insurance Corporation Bob Buenneke IOWA NEWS DES MOINES: John R. Fitzgibbon, president of the Iow a-Des Moines National Bank, has been elected president of the Greater Des Moines Chamber of Commercé for 1970. DES MOINES: New officers of the Des Moines Clearing House, Inc., an association of local banks, have been elected. They are: President — Robert J. Sterling, president, Bank ers Trust Company; vice presidents — John Fitzgibbon, executive vice president, Iowa-Des Moines National Bank, and Hugh Gallagher, chairman, executive committee, Iowa State Bank; secretary —S. G. Barnard, vice pres ident and cashier, Bankers Trust Company. GRINNELL: Harris R. Stafford has DO YOU Want to buy, sell or trade bank equipment or fixtures? iti Let Mighty Mite NORTHWESTERN BANKER WANT ADS Do the job for you! been named to the board of directors o f the Grinnell State Bank. He is executive secretary of the Mayflower Home Board of Grinnell and Ottumwa. MALVERN: Edward E. Mulholland, cashier at the Malvern Trust & Sav ings Bank, has been named to the bank’ s board of directors. MUSCATINE: The Central State Bank has established a detached teller facility at 122 East Third Street here. SHELDON: The grand opening of the new drive-in building of the Citizens State Bank at Third Avenue and Eleventh Street was held earlier this month. Wallace Groeneweg is man ager o f the new one-story, colonialstyle brick building. NEBRASKA NEWS BLUE HILL: Application of the Com mercial Bank here to withdraw from membership in the Federal Reserve System has been approved by the Federal Reserve. OMAHA: The directors of the West Omaha National Bank have approved a stock dividend of one share for * each five ilow held. The dividend, • which would increase the capital stock of the bank from $ 3 75 ,000 to^ $ 4 5 0 ,0 0 0 is su bject to approval o f f stockholders and the Comptroller of f the Currency. T h is would be the first dividend in the history of the fiv e-J year-old bank. - • SOUTH DAKOTA NEWS HURON: Reynold Klay, vice president and manager of the National Batik of South Dakota here, has announced the promotion of Mike Clark from a s sistant cashier and manager of the time pay department to assistant vice president and manager of that depart ment. Dave Hanten has been named assistant cashier. Mr. Clark has been associate with the bank’s Huron o ffice sin ce 1966. Mr. Hanten joined the bank in 1968- MINNESOTA NEWS EMMONS: Juel Nelson, formerly agri cultural service representative for* Interstate Power Company, has been HASTINGS: T . L. Rask will retire as elected agricultural representative of president of the First National Bank the First National Bank of Emmons. of Hastings on April 1, 1970- He will be su cceeded by H. Jack Moors. Mr. MANKATO: Jack Howard, executive Rask, who has been in the banking vice president at the National Bank business for 37 years, has been pres of Commerce here, has announced ident of the bank since 1963. Mr. two appointments to the bank’s staff. Moors has been with the Northwest C e c il' Buckmeier has been named Bank Corporation, which has the cashier, and Ralph Lindeen ha' Hastings bank as an affiliate, since been elected auditor. Mr. Buckmei 1967. He was elected senior vice was formerly programmer of the president and director of the First Bankers Computer Center and prior to that was employed at the Federal Savings & Loan in Mankato. Mr. Lindeen also has been employed at Bankers Computer Center. ED LEAHY-New Man on Security’s Team MINNEAPOLIS: Wendell E. Lotthammer of Brooklyn Center has been e lec- We predict you'll choose him Rookie of the Year! seeurlty naDnai https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis «I cut in sioux city BANK DESIGN CONSULTANTS BOX 8 7 P H .1-712-2621499 SP E N C E R ,IO W A 51301 L IN C O L N ...First in Transit Service FIRST NATIONAL BANK & TR U ST COMPANY OF LINCOLN 12th & N Street • LINCOLN, NEBRASKA • Member: F.D.I.C. ted assistan t cashier of the First Hennepin State Bank. He began his banking career at the First Robbinsdale State Bank, Robbinsdale, Minn., in 1962. From 1962— 1965, he was employed at First Hennepin State Bank, returning to First Robbins dale in 1965, where he is currently an assista n t in the installment loan department. NAVARRE: The Comptroller of the Currency has denied the application of the First National Bank of Navarre here to change its title to the First National Bank of Lake Minnetonka. NEW LONDON: The State Department of Commerce has authorized an amendment changing the name of the State Bank of New London to the First State Bank of New London. ~-jr' STEWART: Victor Rennecke has joined the First State Bank here, effective January 1, as assistant cashier. He was formerly manager of the Stewart Municipal Liquor Store. WAY Z AT A: Dr. W. W. Rieke, a prac ticing physician here since 1933 and a director of the Wayzata State Bank, has died at the age of 63. 74. Mr. Heymann became associated with the bank in 1928« He became vice president in 1942, was elected president in 1946 and appointed vice chairman in 1965. KEW ANEE: N . H. (Red) Kortuem of Yankton, S. D ., has been .named president of the Kewanee National Bank. Mr. Kortuem began his banking career at the Union State Bank, Thief River F a lls , Minn., in 1949. He also has been employed as e x ecutive vice president of the Security State Bank, G ayville, S. D. P A L A T IN E : The Comptroller of the Currency has approved thé applica tion of the Palatine National Bank to locate a facility at 201 West C olfax here. P E K IN : William E. Troutman, pres ident of the First National Bank & Trust Company, has announced the following two appointments. Robert D. Somers h a s been promoted from manager, bookkeeping department, to assistant cashier. Larry E . Friend has. been named assista n t in stall ment loan officer. WYOMING NEWS ILLINOIS NEWS * ^ BATAVIA: Ownership of the Batavia National Bank has been transferred to the Batavia Investment Company, according to Walter R. Johnson, chairman of the bank’ s board of directors. The Batavia Investment Company is a group of investors ^eaded by Thomas V. Markle, pres ident of the Beverly Bancorporation, In c., of Chicago. Mr. Johnson will continue as chairman. Robert F. R iley, formerly executive vice pres ident of Gary-Wheaton Bank, has been elected president, chief ex ecutive officer and a director. E l liott Lundberg has been promoted from vice president to senior vice president. Edward Heveran, vice president in charge of client banks for the Beverly Bancorporation, has been elected to the Batavia bank’ s board of directors. CHICAGO: Edgar Heymann, a vice chairman of the Exchange National Bank here, has died at the age of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HEADY NOW RIVERTON: Keith J. Brighton and John D. Raymond have been named new loan officers at the First Na tional Bank of Riverton. UPTON: The Union State Bank has moved into its new bank building. Among new conveniences at the bank is a newly installed night depository. A grand opening has been s e t for next month. PÉSSf!\ I\ n ACCURATE' . ' - " 40! \1 The completely new fall, 1969 Illinois Bank Directory is now ready. U p to date listings of officers, statement fig ures, and other vital facts about all Illinois Banks. Plus information about Bankers' Associations and regulatory agencies. Now only $5.00 per copy. W rite the NORTHW ESTERN BANKER today for your copy. The address is 306 Fifteenth Street, Des Moines, Iowa 50309. National Bank and a member of the bank’ s managing committee. The former senior vice president assumes oyer-all responsibility for the metropolitan, national and inter national banking departments. He has been with the bank sin ce 1928. WASHINGTON, D .C .: The Senate has confirmed President Nixon’ s nomina tion of Dr. Arthur F. Bums to head the Federal Reserve System, s u c ceeding William McChesney Martin, effective February 1. NATIONAL NEWS LOS ANGELES: Norman R. Rehm has been elected an executive vice president of the Security P a cific /Rk G ross C o BANK PLANNING Waterloo. Iowa Qwiwty Annst roa g Bob Srott ‘WE H A V E W H A T YOU WAN T in a correspondent bank* American Trust and Savings Bank 9TM AND MAIN. DUBUQUE. IOWA MEMBER rO IC • FRS Always the First to Serve You! First National Bank o f Omaha 16 TH A FARN AM * O M AH A, N E B R A S K A Member Federal Deposit Insurance Corporation Franz B. R olli and Marcel J. Fischer Regulation Q have been appointed investment o f (Continued from Page 1) COLORADO SPRINGS: A gold pin in ficers; H. Edward Kluver, tax officer; money for home building “ is a,t recognition of 50 years of service Alvin D. Reed, systems and pro scarcity le v e ls ,’ ’ he noted, contend ing that relative shortages of housing ' with the Colorado Springs National gramming officer. are pushing up home costs and rents. Bank was presented recently to Annin Earlier this month, one Washington B. Barney. Mr. Barney began his observer suggested that the banking career with the bank as a teller in DENVER: Alton C. Ekstrom, bank em industry needs a “ white horse’ ’ com 1919- He became president in 1951 and chairman of the board in 1965. ployee sin ce 1959, has been named a parable to the savings and loan in vice president at the Denver U. S. dustry’ s housing appeal. The most DENVER: Directors of the First Na National Bank. Also at the bank, recent ruling proves he is right. tional Bank of Denver have advanced Mrs. B elle Bernstein has been ap R. Allen Jensen, Roger D. Knight III pointed information resources officer; WANT ADS and William C. Morr from assistant James H. Bird, Jr., and David L. R ates 25 ce n ts per word per trust investment o f vice presidents to vice presidents. Longinaker, insertion. Minimum: 12 words. N O R TH W E ST E R N B A N K E R Robert W. Panter has been named a ficers; James M. Campbell and Terry 3 0 6 15th S t ., D e s M oines, Iowa trust officer. Promoted from assistant L. Hannum, operations officers. COLORADO NEWS cashiers to assistant vice presidents were: R oss M. Bolt, James W. Moore, John J. P erizzolo and Donald H. Rydstrom. Rodney C. Thomas, a s s is tant cashier, has been named data processing officer. Other new officers include: assistant cashiers —Jonathon E. Baker, Jack W. Calabrese, William E. C ell, Ann E. Gourlay, Verna L. Gunnerson, Mildred J. L eslie, Gloria C. O’ Hayre, James C. Ostrander, Shir ley Thompson; data processing o f ficer —Gilbert L. Romero; assistant trust officers —Eugene C. Hetland, Nelson B. Saunders, Jr., Jerry L. Stout; investment officer — Gerald W. Kintzle. DENVER: Four officers have been promoted at the First National Bank of Bear V alley. Robert D. Binder has been promoted from vice president to first vice president; Frank S. Peter son, from cashier to vice president and cashier; William M. Dinges and Michael F. Everett, from assistant cashiers to assistant vice presidents. DENVER: Charles L. Ferguson has been named executive Vice president at the University H ills Bank. Mr. Ferguson entered the banking busi ness at the National Bank of Com merce in Lincoln in I960- He was with Evergreen State Bank as vice DENVER: Donald J. Horst has been president before joining theUniversity named vice president and trust o f H ills Bank in 1 9 6 6 . > ficer at the Colorado National Bank. He is a member of the Colorado Gen DENVER: Jerald L. Selinfreund, man eral Assembly and has been with the ager of the Master Charge department bank sin ce 1960, serving as a trust at the American National Bank, has officer sin ce 1964. Paul C. Gilman been promoted from assistant vice has been promoted from assistant president to vice president. Daniel trust officer to trust officer. D. Bar B. Sullivan has been elected an oper ry 'Wyatt and Denny Dumler halve been ations officer and Klaus Golombeck named assistant v ice presidents; an assistant cashier. CH ILES &COMPANY INCREASE 1970 PROFITS Cy Kirk and Max Roy, vice presidents of LaSalle National Bank, Chicago, are prepared to assist you and your bank in planning increased profits for 1970. Whether it is an analysis of your bond portfolio or a cost study of your general banking services, LaSalle National Bank has the facil ities to serve your every need. Call Cy or Max today at (Area Code 312) 782—5200 for immediate action. POSITION AVAILABLE Northeast Iowa suburb bank has of¿ ficer positron available for young man with operations and loan e x perience. Starting $8,000 plus e x tras. Reply with resume in con fi dence. Write File BEB, in care of NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. WANTED Position in a bank in Operations or Auditing Department. Write F ile FJJ, c / o NORTHWESTERN BANKER, 306 Fifteenth St., DeSMoines, Iow a 5030; FOR SALE Bankers’ car mats, place mats, nap kins, desk pads, farm record books, shopping bags.Independent Products Corporation, Onamia, Minnesota 56359. M EM BER, M IDW EST STOCK EXCHANGE 412 Farm Credit Building, Omaha. Nebraska 68102 Phone 346-6677 (Area Code 402) Teletype 402 348-1040 Other Offices Located in LINCO LN N ebraska # LEXING TO N N ebraska . VER M ILLIO N South Dakota ADVERTISING HELPS For the agricultural banker—ads, mats, editorials and newsletters that ^ sell full service banking to farmers. Samples available — Farm Business Council, Inc., P. O. Box F , Urbana, Illinois 61801. _*r No. 1201 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309* Subscriptions 50£ per copy, $6 per year. Second cldSs postage paid at Des Moines, Iowa. Address all mail Digitized subscriptions, for FRASER chdnges of address (Form 3579), manuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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