Full text of The Northwestern Banker : January 10, 1966, No. 948

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No. 948

Des Moines, Iowa

January 10,1966

Randall Rules Against Advertising
FDIC Coverage on Certain Deposits

The FDIC ruled last week
that Iowa banks may not adver
tise that FDIC coverage is
available for any funds on which
interest in excess of 4 per cent
is paid. The ruling was in the
form of a telegram from K. A.
Randall, FDIC chairman, to
John Chrystal, Iowa superin
tendent of banking, who had
requested clarification earlier.
Mr. Randall said that in view
of the Iowa statutory provision
limiting such interest to 4 per
cent, and provisions of the Fed
eral Reserve Act which limit
interest paid on deposits in
member banks to that permitted
by state law, no Iowa bank
should give any assurance to
customers of the availability
of FDIC insurance “ until fur
ther announcement is made by
the FDIC board of directors.”
As reported here a week
ago, First National of Council
Bluffs recently obtained a rul
ing from Comptroller of the
Currency James J. Saxon that
Iowa national banks may pay in
excess of 4 per cent on time
money, a ruling contrary to one
he had issued earlier that they
must abide by the state law.

Wording of the law itself, how
ever, has made the issue par
ticularly confusing.
How the conflict between
FDIC and the Comptroller’ s
ruling will be resolved was not
determined at press time. Dale
Ball, president of First Nation
al in Council Bluffs, told the
Northwestern Banker that he
will, of course, abide by the
FDIC ruling. Customers are
being issued 4 per cent CD’ s
with a letter of intent attached
stating that if permission to
pay more than 4 per cent is
granted prior to expiration of
the CD, that First National will
pay the higher rate on the en
tire span of that CD. The bank
will continue issuing its First
Savings Bond bearing 4% per
cent interest, but without FDIC
coverage.
Across the Missouri River
in Omaha, downtown banks and
several others are paying higher
than 4 per cent under Federal
Reserve and state bank director
authority. Last week First Na
tional of Omaha also began
offering a 5-year First National
Savings Bond at 4% per cent.
This bond is FDIC insured.

Meanwhile, banks in northern
Iowa were expressing concern
because
banks in southern
Minnesota are advertising on
north Iowa TV and radiostations
with their higher than 4 per cent
rates. Scattered reports of mon
ey leaving the state had come
in last week. Mr. Chrystal said,
“ No matter what my opinion is,
Iowa banks must be allowed to
keep the money which they now
have on deposit if they are to
meet their obligations.” Loss
of
recently-gained
deposits
would severely hamper some
of the state’ s banks, he said.
* * *
One rumor floating around
the state was laid to rest last
week when Iowa State Treasur
er Paul Franzenburg told the
Northwestern Banker unequivo
cally that all money invested
by his department in bank CD’ s
has been placed only in Iowa
banks and this now totals $33,
599,000. The unfounded rumor
was that Iowa CD money was
going out of the state for higher
return. The $33.6 million is
purposely invested in CD’ s of
106 Iowa banks who requested
the funds so that the state’ s
money will be used to support
the economy of the state through
normal financing and commercial
outlets.

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IOWA NEWS
CRAWFORDSVILLE: Control
ling interest in Peoples Sav
ings Bank has been sold to
William R. Bernau, Cedar Rapids
attorney. Sale was negotiated
by Reginald Figge A ssociates.
DAVENPORT: First National
Bank directors have promoted
Jay M. Bennett to vice presi
dent. He is manager of install
ment loans.
DES MOINES: James C. Enyart
and John M. Kurtz have been
elected directors of the National
Bank of Des Moines.
DES MOINES: Kenneth E. G lass,
West Des Moines, has been pro
moted to regional director of the
U. S. Treasury’ s Savings Bond
Division.
IOWA CITY: Hawkeye State
Bank opened last Monday in its
new brick and concrete building.
MT. PLEASANT: Open house
is scheduled this afternoon
from 4 to 6 p.m. at the newlyremodeled Mount Pleasant Bank
and Trust Company.
SPENCER: Chet Huntley, NBC
news
commentator, was in
Spencer last Saturday to help
celebrate the second anniver-

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NEBRASKA NEWS
BIG SPRINGS: An educational
trust fund for the orphaned sons
of Mrs. Lois Ann Holthan totals
more than $78,000. Mrs. Holthan,
a bookkeeper in the Farmers
State Bank, was one of three
persons murdered when the bank
was held up last June 4. Her
husband had died less than a
year earlier.
OMAHA: Joseph Kennedy has
been named assistant manager
o f the Dean Witter and Company
office.
OMAHA: Clifford Hardin, Uni
versity of Nebraska Chancellor,
has been reappointed chairman
of the Omaha branch of Federal
Reserve Bank of Kansas City.
John T. Harris of McCook was
reappointed to a third two-year
term on the Omaha board. Hom
er A. Scott of Omaha was re
appointed chairman of the Kan
sas City Fed board.
WAUSA: N. T. Tiemann, presi
dent of Commercial State Bank,
has officially filed as a Repub
lican candidate for election as
Governor of Nebraska next fall.

MINNESOTA NEWS
BIG LAKE: Ed H. Anderson, 70,
former cashier, Citizens State
Bank, died at his home in Montice llo recently. He had been in
ill health since his retirement
last year.
COKATO: First National Bank
has taken an option on a local
building for the purpose of
future expansion, but has an
nounced no definite plans.
MARSHALL: Dale W. Anderson

L IN C O L N

ssistant vice president, Donald I. Piehl, auditor,
and Stanley E. R oll, assistant
cashier, at the First National
Bank recently.
MINNEAPOLIS: Judson Bemis,
Minneapolis, has been designa
ted chairman and Federal Reserve agent of the Federal Re
serve Bank of Minneapolis for
1966. Edwin G. Koch, president,
Montana College of Mineral
Science and Technology, Butte,
has been reappointed a director
of the Helena branch of the
Minneapolis Reserve Bank for a
two-year term which began Janu
ary 1.
MINNEAPOLIS:
Stewart
L.
Stoesbery has been elected an
assistant cashier in the corres
pondent bank department at
Marquette National Bank.
MINNEAPOLIS: Ernest J. Tay
lor has been elected assistant
cashier at National City Bank.
MINNEAPOLIS: Leroy H. Berg,
vice president, Northwestern
Bank, and manager of the bank’ s
Lake Street office, has retired,
ending a 47-year banking career.
MINNEAPOLIS:
Charles
E.
Corchran, vice president and
cashier, and Walter A. Howe, assistant vice president, have
retired at First National Bank.
MINNEAPOLIS: Vice President
Thomas V. Markle has been
named treasurer of First Bank
Stock Corporation, succeeding
the retired Leonard 0 . Fredell.
RICHFIELD: The new Summit
State Bank of Richfield-Bloomington is expected to open for
business in early April or May.
SPRINGFIELD: N. V. Swanbeck,
president, Farmers and Mer
chants State Bank, was honored
last month for his 45 years of
banking in Springfield.
VASA: White Rock State Bank
last month celebrated its 50th
anniversary in business.
WATERTOWN: William F.M ass,
vice president, Peoples State
Bank, has retired following a
banking career of 42 years.
ZUMBROTA: M. C. Rockne,
65, president of the Farmers
Security State Bank for the past

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SOUTH DAKOTA NEWS

ABERDEEN: Duane Anderson
has been elected vice president
and trust officer of the First
National Bank, effective Friday,
January 15, succeeding Orley
Rath, who resigned to enter
private law practice. Dennis
Bale, Norgrin Sanderson and
Ron Rivett have been elected
assistant cashiers at the bank.
LAKE NORDEN: L. A. Lohr,
veteran Lake Norden banker,
has retired as cashier of the
First State Bank, effective
January 1.
PHILIP: Gregor A. Weber has
been advanced from cashier to
v ice president and cashier and
Robert A. Payton has been
named assistant vice president
at First National Bank.
RAPID CITY: John T. Vucurevich has sold majority interest
in United Corporation, which
owns approximately 84 per cent
of the Rushmore State Bank, to
Billy 0 . Phillips and MauriceL.
T est, both of Des Moines, Iowa.
Mr. Phillips will be chairman
of the board. Present bank per
sonnel will continue in their
same positions to operate the
bank. Mr. Phillips is a building
contractor in the Des Moines
area. Mr. Test is an attorney.
Both men also have interests
in Fort Lauderdale * Florida.
Mr. Vucurevich’ s other banks
in South Dakota, Montana and
Wisconsin were not affected.
SIOUX FALLS: A. E. Friday
has been elected vice president
and Donald A. Isaacson and
Richard Pruitt have been e le c
ted assistant cashiers at Na
tional Bank of South Dakota.

NORTH DAKOTA NEWS
BERTHOLD: A hearing will be
held January 14 at 1 p.m. in the
office of State Examiner Eugene
Rich on application of First
Western State Bank, Minot, for
a paying and receiving station
at Berthold. American State
Bank of Minot recently opened
such a facility in Berthold.
BISMARCK: The North Dakota
Banking Board has authorized
all banks to pay up to 4% per
cent compounded quarterly on
time
deposits. The previous

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OMAHA

CARSON: Lloyd Kempf, presi
dent of the Grant County State
Bank,resigned his position last
month. A successor is to be
named at the bank’ s annual
meeting this month.
GRAND FORKS: Pershing Boe
has been elected president of
First National Bank. He was
vice president and trust officer
of First National Bank and Trust
Fargo. He succeeds Fred R.
Orth, who continues as chair
man of the board. Mr. Boe takes
office in February.
VALLEY CITY: Arthur I. Nel
son, assistant cashier, First
National Bank, Marshall, has
been named cashier of the
American National Bank, Valley
City, effective January 1.

MONTANA NEWS
BILLINGS: First Bank Stock
Corporation, Minneapolis, has
transferred $1.3 million to a sub
sidiary bank in Billings, Mont
ana, to cover bad loans dis
covered after a vice president
of Midland National Bank, B il
lings, died in an automobile
fire. John A. S illers,. 39, the
vice president of the Montana
bank, died December 20 when his
automobile exploded and burned
while parked on the rim rocks
overlooking Billings. Bank of
ficials initiated an investigation
of the bank’ s financial condition
following the vice president’ s
death.
BILLINGS: Directors of First
National and Billings State
banks voted merger of the two
banks last month. Approval of
stockholders and Comptroller
of the Currency still must be
obtained. The resulting bank
would have about $42 million
in assets and would be part
of the Northwest Bancorporation, with which Billings State
is now affiliated.
BUTTE: Robert M. Pancich has
been elected assistant cashier
and assistant operations officer
at Metals Bank & Trust Com
pany. Mr. Pancich had been
cashier at First Westside Na
tional in Great Falls.

Inc •

CUT BANK: R. R. Bartschi
has been named to succeed
H. M. Emerson, Jr., who re
cently resigned as vice presi
dent and cashier of the First
National Bank. Art Wiedeman,
Jr., assistant cashier, First
National Bank, Glendive> has
also joined the staff of the
First National in Cut Bank.
GREAT FALLS: John S. Hart
well has returned to First Westside National from First Bank
Stock Corporation in Minne
apolis as cashier. He succeeds
Robert M. Pancich, who moved
to the Metals Bank and Trust
C o., Butte, as assistant cashier.

WYOMING NEWS
CHEYENNE: Norris E. Hartwell,
77, state examiner since 1941,
retired January 1, and was suc
ceeded in that post by Dwight
Bonham, who has been deputy
state examiner.
LARAMIE: At University Na
tional Bank, Mrs. Edward Mayfield has been named auditor,
and Mrs. Charles F. Yeoman, Jr.,
and Bill C. Prowell II, have been
elected assistant cashiers.

COLORADO NEWS
COLORADO SPRINGS: Plans
for what could be the 18th com
mercial bank in the area have
been disclosed. A letter of in
tent has been filed with Harry
Bloom, state bank commissioner,
proposing a Bank of Woodmore
near the interchange of Inter-

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50, 15 miles north of Colorado
Springs.
DENVER: The First Colorado
Banks hares, Inc., four banks—
Security National, First Na
tional of Englewood, University
Hills and Lakeside N ationalare offering 4.85 per cent on
2-year CD’ s , 4.75 per cent on
1-year CD’ s and 4.5 per cent
on 6-month CD’ s.
DENVER: Louis W. Gnam has
been elected assistant vice
president of J. K. Mullen Invest
ment Company and has been
placed in charge of sales activ
ities.
DENVER: John T. Reagan has
been elected assistant vice
president at Denver U. S. Na
tional Bank., J. Harvey Ander
son, Jr. has been named as
sistant comptroller, Jack P.
E llis, assistant trust officer,
and Alvin W. Haggerty, as
sistant cashier.
DENVER: Cris Dobbins, presi
dent, Ideal Cement Company,
has been appointed to the board
of the Denver branch of the
Kansas City Federal Reserve
Bank.
LAKEWOOD: Charles R. Pyle
has been named assistant cash
ier at Rocky Mountain Bank.
LAKEWOOD: John S. Heilman
has been elected as assistant
cashier at First Westland Na
tional Bank of Lakewood.

NATIONAL NEWS
CHICAGO: Arthur T. Leonard
last week retired from Conti
nental Illinois National Bank
and Trust Company as chair-

man of the executive committee
of the bank’ s board of directors.
KANSAS CITY: Newt W. Jones
and Dulcie(Mrs. Frank L .) F itz
gerald, vice presidents, First
National Bank of Kansas City,
have retired effectiv e1 Decem
ber 31.
LOS ANGELES: Joseph U.
Streeter has been promoted to
vice president of Security First
National Bank’ s national and
metropolitan banking depart
ment, head office.
LOS ANGELES: Clifford Tweter
became president on January 1
of Western Bancorporation, suc
ceeding M. E. McMillen, who
retired. Fred S. Huber was e le c
ted executive vice president.
Mr. Tweter will continue as
president of United California
Bank, with his principal duties
being with Western Bancorpora
tion.
NEW YORK: Wilbur C. Baldwin
and William W. Flanagan have
been named vice presidents of
First National City Bank.
PHOENIX: Patrick F. Keig and
L. G. Kennedy have been e le c
ted vice presidents at Valley
National Bank. Forrest G. Pear
son, Jr., has been named trust
officer, Nathan C. C ollins, as
sistant cashier, and Charles H.
Koozer,
purchasing
officer.
ST. LOUIS: James P. Hickok,
chairman, First National Bank
in St. Louis, has been named

SAN FRANCISCO: Francis X.
Scafuro has been elected senior
vice president of Bank of Amer
ica (International), New York
subsidiary of California’ s Bank
of America. Robert T. Shinkle
has been named senior vice
president and chief adminis
trative officer for the trust
department of the Bank of Amer
ica. Edgar H. Canfield has been
named vice president.

V-

WASHINGTON, D.C.: Effective
December 31, the Federal Home
Loan Bank Board adopted a
resolution permitting Federal
savings and loan associations,
which distribute earnings from
the first of each month on sav
ings received up to the 10th of
the month, to distribute earnings
from the date of receipt on sav
ings received after the 10th of
the month.
V*

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Full text of The Northwestern Banker : January 10, 1966, No. 948

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