Full text of The Northwestern Banker : January 1962, 68th Year, No. 894

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JA M U A 1
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m

S. CLARK BEISE

S. C. PIDGEON

W hat’s Ahead
E. W . LY M AN

for l!MS2
LEO R. GRUBER

L. A D A M S

F. G. M cCLINTOCK


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

TILDEN CUMMINGS

N. A . SANDS

M. G. BROOKS

MNB’S MODERN APPROACH TO BANKING . . . ANOTHER REASON WHY OVER
HALF OF ALL IOWA BANKS ARE MERCHANTS NATIONAL CORRESPONDENTS
Here are models of some of the IBM units to be included
in MNB’s Electronic Datacenter. The Datacenter will be
installed to provide even faster and better service to our
customers. It will also be available to business, industry,
and the professions. And whatever your needs, you can
depend on Merchants National for the most modern,
accurate, and prompt service. Your call will be welcomed.

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

THE MERCHANTS NATIONAL BANK
OF CEDAR RAPIDS

MEMBER F.D.I.C.

How digging for business brought
this banker a new account
One of our correspondents in a midw estern city heard an interesting rep o rt
—m ining properties located nearby were
being considered for developm ent.
T he bank asked us to investigate.
T he repo rt was true, and we im m edi­
ately contacted the m ining com pany.
We told th e m of our c o rre sp o n d e n t’s
interest in doing business w ith them ,
and arranged a personal introduction
betw een the b a n k ’s officers and the
executives of the m ining com pany.
R esult: th e m ining com pany opened
an a c c o u n t w ith our c o rre sp o n d e n t

bank, and an im p o rtan t new relation­
ship was established. "D igging for busi­
ness’’ to help correspondent banks is
one of our m ost im p o rtan t services.
As a correspondent of the N orthern
T ru st, you too can count upon this
ready cooperation. I t ’s an im p o rtan t
"p lu s’’ th a t goes along w ith our full
range of banking, credit, bond, tru st,
and operating services. M ay we be of
help to you? If you are n o t already
a c q u a i n t e d w i t h u s , c a l l N. H a l l
Laym an, Vice President, or one of his
associates in the B anking D ep artm en t.

*5 * 8

^

N O R T H E R N /T ftU S T
5 0 South La Salle Street
C h i c a g o
9 0 ,
I l l i n o i s
FI 6 - 5 5 0 0 • M e m b e r F . D . I . C .

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N o . 894. N o r th w e ste r n B a n k er is p u b lish ed m o n th ly by th e N o r th w e ste r n B a n k er C om pan y, 806 F ifte e n th S tr e e t, D es M oines 9, Io w a . S u b scrip tio n 3 5 c
per co p y , $3 p er year. S econ d c la ss p o sta g e p aid a t D es M oines, Io w a . A d d ress a ll m a il (su b scrip tio n s, ch a n g e o f ad dress, F orm 3579, m a n u scr ip ts,
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Digitized

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Federal Reserve Bank of St. Louis

4

Standing from left: V I C T O R C. V O N M E D I N G , F R E D S. F L O Y D , J O S E P H C. F E N N E R , E R N E S T J. I I U L T G R E N , W I L L I A M T . DWYER, Assistant Vice-Presidents;
Seated, G E O R G E W. M I L L E R and C H A R L E S F. N E W H A L L , Vice-Presidents.

T h e i r f u ll- t im e jo b :
s e r v in g you!
H ere are th e two adm inistrative of­
ficials and th e five officers in charge
of th e territorial areas of th e Banks
and B ankers Division a t The F irst
N ational B ank of Chicago. They
are p a rt of th e team of 25 m en who
have b u t one job: to serve our more
th a n 2,000 correspondent banks.

Assigned to geographical areas, the
m en of Division F understand the
p roblem s an d th e needs of local
bankers.
T hey work closely w ith th e of­
ficers in our ten commercial divi­
sions to supply our correspondent
banks w ith first-hand financial and

in d u s tria l in fo rm a tio n an d w ith
complete correspondent services.
No m atter w hat th e problem , no
m atter w hat th e service, you can
havefull-tim ecorrespondentbankers
working for you. Visit, telephone or
w rite D iv isio n F a t T h e F ir s t
N ational B ank of Chicago today!

The First National B ank of Chicago
Nort hwest ern Banker, January,


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Federal Reserve Bank of St. Louis

1962

5

T o p p in g Cerem ony

Oldest Financial Journal West o f the Mississippi

fo r your J A N U A R Y ,

1962,

reading

No. 894

68th Y e a r

EDITORIALS
T O PP IN G OUT. H erm an G. M aser,
r ig h t, vice p re s id e n t, B a n k e rs T ru s t
C om pany, N ew Y o rk , a n d D avid
Rose of Rose A sso c ia tes, ow nerb u ild e r, officiate a t u n u su a l to p p in g
o u t cerem o n y a t th e new B a n k e rs
T ru s t B u ild in g on m id to w n P a r k
A v e n u e in N ew Y o rk . T he occasion
o f e re c tio n of ste e l to th e to p m o st
p o in t o f th e n ew 30-sto ry s k y ­
sc ra p e r w as m a rk e d b y a p ro g ra m
in c o rp o ra tin g
tr a d itio n s
d a tin g
b a c k th o u sa n d s o f y e a rs.

Royal Bank Shows Gains
M arked pro g ress in all phases of the
b a n k ’s business is reflected in The
Royal B ank of C anada’s a n n u al s ta te ­
m ent for th e y e a r ended Nov. 30, 1961.
Total assets now stan d at $4,954,610,256; deposits reached a to tal of $4,501,789,157, an increase of some 15 per
cent over th e figure of a y ear ago.
P ersonal savings deposits in Canada
rose by $88.6 m illion to a to tal of $1,644,623,166.
F ig u re s for to tal loans, excluding
m ortgage loans, topped th e $2 billion
m a rk and now stan d a t $2,069,997,459,
an increase for th e y e a r of $155,682,710. Call loans increased by $56 m il­
lion, rev e rsin g last y e a r’s tren d , and
now to tal $373,263,919. O ther loans
rose by $99 m illion to $1,696,733,540.
M ortgage loans a t $279,814,016 declined
slightly.
N et profits for th e year, a fte r p ro v i­
sion for taxes, to tal $20,759,844, an in ­
crease of $1,256,142 over th e previous
y e a r’s figure. P er sh are earn in g s in
1961 w ere $3.12, ag ain st $3.04 in 1960.
T his is th e 12th consecutive y ear in
w hich th e R oyal B ank has tra n sfe rre d
a portion of th e c u rre n t y e a r’s e a rn ­
ings to th e re st account, w hich now
stands a t $238,071,200. Paid up capital
to tals $66,528,000. T hese figures, to ­
g eth er w ith undivided profits b rin g
the com bined capital fun d s of th e
ban k to $306,384,208.

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Federal Reserve Bank of St. Louis

12

A c ro s s t h e D e sk f r o m th e P u b lis h e r

FEATURE ARTICLES
21

F ro n tis p a g e

23

T h e B u s in e s s O u tlo o k f o r 1962

28

A . B . A . C o m m itte e A p p o in tm e n ts

30

B u s in e s s , T r e a s u r y a n d F e d In d ic a te P o s sib le Boom

31

S p e a k e r s O p tim is tic A b o u t 1962

32

400 A tte n d F e e d e r - B a n k e r M e e tin g

—A

N

o r th w ester n

Bank

er

Survey

— Raymond Trigger

STATE BANKING NEWS
M in n e s o ta N e w s

47

57

W y o m in g N e w s

T w in C ity N e w s

48

59

M o n ta n a N e w s

S o u th D a k o ta N e w s

53

61

N e b rask a N ew s

S io u x F a l l s N e w s

54

62

O m aha N ew s

N o r t h D a k o ta N e w s

55

66

L in c o ln N e w s

56

71

Io w a N e w s

C o lo ra d o N e w s
80

D es M o in e s N e w s

OTHER FEATURES
84

In d e x to A d v e r tis e r s

85

T h e B a n k e r s ’ M a r k e t P la c e

86

I n t h e D i r e c t o r s ’ R oom

87

C o n v e n tio n C a le n d a r

NORTHWESTERN BANKER
306 15th Street, Des Moines 9, Iow a, Telephone CHerry 4-8163

Publisher

A ssociate Publisher

Clifford De Puy

Malcolm K. Freeland

A ssociate E ditor

Doyle Minden

Circulation D ep a rtm en t

Eliiabeth Cole

Lena Sutphin

Field R ep re se n ta tive
AI Kerbel
Frank P. Syms,
Milton P. Bock,

Ben J. H aller, Jr.

A ssociate E ditor

W alter T. Proctor

A d ve rtisin g A ssista n t

E ditor

A u ditor
M argaret Redding

Field R epresen tative
Paul Masters

Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126
Vice President, 654 Baker Building,Minneapolis,
FEderal 6-5357

DE PUY PUBLICATIONS: Underwriters Review, Northwestern Banker,
Iowa-Nebraska Bank Directory
Northwestern Banker, January, 1962

6

Sam uel ff. W oolley i s E le c te d
President^, H ank o f N eu *York
AM UEL H. W OOLLEY w as elected
p resid en t of The B ank of New
York, it w as announced by A lbert C.
Sim m onds, Jr., ch airm an and chief
executive officer.
Mr. W oolley is th e 20th p resid en t of
New Y ork’s oldest bank, founded in
1784 by A lexander H am ilton. An ex­
ecutive vice p resid en t since Ju n e, 1961,
and a vice p re sid e n t since 1955, he
succeeds Donald M. E llim an, p resid en t

since 1957, w ho has resigned. Mr.
W oolley joined the bank in 1933. Ho
served in th e in v estm en t division
since 1934 and becam e its chief in 1960.
Mr. Sim m onds also announced th a t
C harles M. Bliss, executive vice p resi­
d en t and tru stee w ho heads th e tru s t
division, w ill also assum e direction of
th e in v estm en t division.
Also, R obert H. Ew en, T hom as F.
Troxell, Jr., and Jam es W ood have

S

THIS

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1

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#•
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.I'

IS

ABOUT

BUSINESS

★

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SELF-INTEREST

The Valley Bank has spent thousands of dollars and manhours
in attracting industry to Arizona.
Our sales approach has to do with climate, labor supply, distri­
bution facilities, favorable tax laws, modern schools and homes,
the exploding consumer market, etc.
Where is our self interest?
Well, with more industry, Arizona would have more jobs,
payrolls, increased local purchasing, additional tax revenues,
etc. All of which would help the economy prosper. Banking
transactions, too, would increase, and while this would actu­
ally benefit all banks, we have to assume we would get
our share.
In contacting industries, our men also attempt to get new or
increased deposits for the bank. We tell corporation officials
that we put every dollar we can spare of our deposits to work
in our communities, in the form of credit.
We point out that these “Working Dollars” stimulate the
Arizona economy and result in increased payrolls— which
means more purchasing power and naturally increases the
Arizona sales of the “outside” industry’s products or services.
Maybe this sounds like a difficult proposition to get across
to a busy man in New York, or Chicago, or Detroit. But we
just checked our business-customer roster against the recent
Fortune list of the “500 Largest Industrial Corporations.”
Of the top 10 corporations, all were VNB customers; of the
top 20, we had 18; of the top 35, we had 24. Our story is
making sense to industry.
How do we benefit? More deposits mean more loans, more
Valley Bank employees, increased payrolls and a broadened
opportunity for increased service to our state. Whenever more
money flows into a spiralling economy, it has a favorable effect
on everyone involved — so all Arizona also benefited!
★

★

★

This “inside story” is presented merely as a typical illustration
to point up a simple truth about American business:
THE NORMAL SELF-IN TEREST ACTIVITIES
OF A N Y PROGRESSIVE BUSINESS, IN A FREEENTERPRISE SYSTEM, IN E V ITA B LY BEN E­
FIT THE COMMUNITY AND CONTRIBUTE TO
THE OVERALL ECONOMY.
The conclusion is inescapable: we, as individuals, can only
prosper as business prospers. And business can only prosper
under FREE enterprise!

AN “ EDITORIAL7' RUN AS AN ADVERTISEMENT IN
ARIZONA NEWSPAPERS BY VALLEY NATIONAL BANK
Nort hwest ern Banker, J an uar y , 7962


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Federal Reserve Bank of St. Louis

.

been prom oted to vice p resid en t and
Donald F. C urran, E v e re tt E stes,
P eter H errick, F ra n k U. N aughton,
III, H a rry S. Oliver, Jr., and T. Tex
Rhodes have been nam ed a ssistan t
vice presidents.

Promoted in Tulsa
R ichard A. W agner, head of th e cor-,
respondent banking division at th e
F irs t N ational B ank and T ru st Com­
pan y of Tulsa,
Okla., w as p ro ­
m oted last m onth
to s e n i o r v ic e
president.
P rom oted from
assistant
vice
presid en t to vice
p r e s i d e n t w ere
Ted R. O’Shea,
Oneal N eth er land
and P hil Z im m er­
m an, and nam ed
a ssistan t vice presin d en ts w ere L ind­
say A lexander, George W. Jackson and
Jo h n D. Izard.
Jay Thom as, C. O. K appedahl, R. L.
C authon, R obert E. C lark and E. L.
R itschel w ere prom oted to a ssistan t
cashier. K enneth B arton w as nam ed
a ssistan t auditor.
In th e tru s t d ep artm en t J. W. Dikem an and M. B. S tew art w ere prom oted
to a ssistan t vice presid en t and Dale
Goyer and T. A. W inslow w ere nam ed
a ssistan t tru s t officers. The tru s t de­
p a rtm e n t’s petroleum consultant, R.
H. P arks, w as nam ed a ssistan t tru s t
officer.

Vice Chairman, New Director
Named by Chemical-NY Trust
The election of H ow ard W. McCall,
Jr., as vice chairm an of Chem ical
B ank New York T ru st Com pany w as
announced last m onth by H arold H.
Helm, chairm an. Mr. McCall, ad­
vanced from first vice president, is
the b a n k ’s senior credit officer.
C harles E zra Daniel, p ro m in en t in ­
d u strialist and form er U nited States
Senator from South Carolina, has
been nom inated for m em bership on
th e board of directors of Chemical
B ank New Y ork T ru st Company, to
be elected at the an n u al m eeting of
stockholders on Ja n u a ry 16.

First W isconsin Prom otions
W illiam G. B rum der, ch airm an of
th e board and p resid en t of th e F irs t
W isconsin N ational Bank, M ilwaukee,
announced 4 prom otions a fter the
board of directors m eeting recently.
N am ed senior vice p residents w ere
Carl M. F lo ra and E dw in J. W igdale.
R ym und P. W urlitzer w as advanced
to vice president, and E lroy F. D iffert
w as m ade an assistan t cashier.

(

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Name

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Federal Reserve Bank of St. Louis

Northwestern Banker, January,

1962

8

T h e spool is th e sa m e ..

Nort hwest ern Banker, January, 1962


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

9

b u t savings are even greater
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T im es change, and so do your micro­
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chances are your bank can save more
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Contact your local Recordak R ep­
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Federal Reserve Bank of St. Louis

(S u b sid ia ry o f Eastm an K o d a k Com pany)

originator of modern microfilming
—now in its 34th year
IN C A N A D A con ta ct
R eco rd a k o f C a n a d a L td ., Toronto

Nort hwest ern Banker, January, 1962

10

THIS IS
ALLEN
ROYSE...

N E W F P R A O FFIC ERS: L e ft to rig h t, H arold L ew is, second vice p re sid e n t, vice p re s i­
d e n t, T he F i r s t N a tio n a l B a n k o f C hicago; E rnest G. Gearhart, Jr., first vice p re sid e n t,
vice p re sid e n t, T he F i r s t N a tio n a l B a n k of M ia m i; John P. Anderson, F P R A p re s id e n t
a n d vice p re s id e n t o f th e F i r s t N a tio n a l B a n k of P a ss ia c C ounty, P a te rs o n , N. J . ;
Charles H oeflich, th ir d v ice p re s id e n t a n d vice p re s id e n t of The P h ila d e lp h ia N a tio n a l
B a n k ; a n d Robert B achle, tre a s u re r, a n d vice p re s id e n t o f th e N a tio n a l B o u lev a rd
B a n k , C hicago.

Over /..»WWF P R A M em b ers P la n
"M ore
Rusiness fo r Yon in ‘liti "
fìy MALCOLM FREELAND

Presiden t
OHN P. ANDERSON, vice president
of the F irs t N ational B ank of P as­
siac County, P aterson, New Jersey,
w as elected presid en t of the F inancial
Public R elations A ssociation a t its
46th a n n u al convention in Bal H ar­
bour, F lorida, last m onth.
Over 1,500 delegates atten d ed the
convention’s full schedule of w ork
and stu d y sessions, a new attendance
record for the A ssociation w hose
m em bers include advertising, public
relations, and business developm ent
executives from some 2,000 financial
in stitu tio n s.
T his y e a r’s convention them e was
“More B usiness F o r You In ’62.” In
scores of m eetings, school sessions,
lectures, and sem inars, financial m en
and wom en m et
to exchange new
i d e a s on h o w
th e ir in stitu tio n s
could b e tte r serve
th e ir custom ers.
N am ed to assist
P resid en t A nder­
son d u rin g the
com ing year
were: first vice
presid en t E rn e st
T . O. C O O P E R
G. G earhart, Jr.,
vice president, F irs t N ational Bank of
Miami; second vice president, H arold
W. Lew is, vice president, F irs t N a­
tio n al B ank of Chicago; th ird vice
president, C harles H. Hoeflich, vice

J

NOTHING HE
W O U LD RATHER DO
THAN WRITE YOU
ABOUT FINANCIAL
ADVERTISING

Allen doesn’t just write letters*,
but you can count on a speedy
reply from him in answer to any
bank advertising and public
relations question. His approach
to whatever your problems are
will be backed by 25 years in
advertising, plus a solid educa­
tional background including a
degree from Harvard School
of Business.
fAllen’s mailing address is
527 Second Avenue South

R IC H A R D

S

t

EBBIN S

A N D A S S O C I A T E S INC.

527 SECOND AVE. SOUTH .
M INNEA PO LIS

2.

M IN N .

Nort hwest ern Banker, January, 1962


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

p resid en t of the P hiladelphia N ation­
al Bank, and R obert A. Bachle, vice
presid en t of th e N ational Boulevard
Bank, Chicago, w ho was re-elected
treasu rer.
D irectors elected to three-year term s
included: T hom as O. Cooper, p resi­
dent of the Jefferson State Bank, Je f­
ferson, Iowa; W illiam P. Scott, vice
p resid en t of C entral T ru st Company,
Cincinnati; Dave Neill, tru s t officer
of the N orth Carolina N ational Bank,
C harlotte, N o r t h Carolina;
Mrs.
F ran ces Bent, vice p resid en t and sec­
re ta ry of the H artfo rd F ed eral Sav­
ings & Loan Association; Law rence
M ehren, vice p resid en t of the Valley
N ational Bank, Phoenix, and E dw ard
M. Penick, president, W orthen B ank
& T ru st Company, L ittle Rock, A rk an ­
sas.
The 1962 an n u al convention will
be held at Chalfonte-H addon Hall in
A tlantic City, New Jersey, October
14-18.

W

a y ne

H

u m m e r

CHIC A G O

NEW

YORK

STO CK

EXCH ANGE

&

C o.

11

ì

>

1
Photograph courtesy the Manhattan Savings Bank, New York City

f

>

“Getting to know you”
When people get to know their financial insti­
tution, a confidence develops that results in
lasting friendship. Christmas Club a Corpora­
tion helps to promote this friendship and
confidence . . . among people who have demon­
strated that they are ready and willing to learn
how to take care of their money.
Christmas Club members are young people,
old people, middle-aged people, children. You
get to know all of them better because they
make regular weekly Christmas Club visits
and because Christmas Club a Corporation,

through its research activities, keeps you in­
formed about the spending and saving habits
of Christmas Club members. Just as impor­
tant, these people get to know you and the
complete financial services you offer. Profitable
for you, profitable for them.
Won’t you get to know us and the services
we offer? For over fifty years our services have
been helping financial institutions to know
their customers better. Just drop a note and
we will arrange for a staff member in your area
to contact you. No obligation, of course.

Christmas Club
a ^Corporation
230 Park Avenue, New York, N. Y.
Fou n d ed by Herbert F. Rawll

’X

Builds C h aracter • Builds Savin g s • Builds Business for Fin a n cia l Institutions


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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, January, 1962

12

t

V

/
A

3. The common market is favorable to U. S. in
the long run because improved conditions in
Europe will mean increased purchases in the
U. S.
4. Annual income per person in the U. S. has
more than tripled in the past 20 years. I t
was $595 in 1940 and $2,223 in 1960.
(D sloA . J ju ih s iA , d L . ¿ ( a d y s A ,:
Secretary of Commerce, U.S.A.,
Washington, D. C.

You have expressed an optimistic viewpoint con­
cerning business for 1962 and we agree with von,
but lets take a look at both the unfavorable and
favorable factors.
Some of the unfavorable factors are these:
1. National debt of $297 billion and small chance
of a balanced budget in the next fiscal year.
2. Largest welfare rolls in history with 7 million
people getting 4 billion dollars a year for
relief. In many organizations charity has be­
come a racket.
3. Some labor unions are asking for a 20 or 30hour week, while steel is produced in the U. S.
on a $32 a day employment cost and overseas
with $10 a day employment costs.
4. The anti-business attitude of the K ennedy ad­
m inistration which is trying to convict the
electrical, chemical, and drug industries be­
cause of a price arrangement while the unions
agree every year to a wage monopoly with the
sanction and approval of Washington—and
Jimmy Hoffa, the biggest crook and grafter
in the labor racket goes free.
5. The possibility of a steel strike this year.
6. Tax reform is long overdue, and as one au­
thority puts i t : “No nation in history has
survived a tax burden that reached a third
of the national income, yet today the tax col­
lector takes 33 cents out of every dollar earned
and of that 33 cents, 23 cents goes to the
federal government, and only 10 cents for the
State, C ounty and Local Com m unity.
Favorable Factors, are these:
1. Gross National Product may reach $565 bil­
lion compared to $520 billion in 1961 a gain
of $45 billion in 1962.
2. Possible production of 7 million autos in 1962
or a 16% increase over 1961.
Nort hwest ern Banker, January, 1962


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

k

5. The menacing Menshikov of Moscow boasts
that—“In 20 years Russia will be producing
twice as much in industrial goods as is now
produced in the whole non-socialist world.”
Does he think the United States will stand still
for 20 years?
We have news for him, because according to
Chase Manhattan Bank figures “The Free W orld’s
private businesses are producing goods and serv­
ices at an annual rate of more than $700 billion,
at least double the total production of the commu­
nist bloc where state enterprise is virtually all-en­
compassing.”
6. Personal savings of about $27 billion.
7. Government purchases of 119 billion.
In Conclusion:
1. 1962 will be a prosperous year if we avoid
strikes at home and war abroad, and work
to reduce unnecessary government spending
and the growth of bureaucracies in Wash­
ington.
2. Recently Abraham Ribicoff, the Welfare “do
gooder” Secretary said in a speech, “There
is a helluva lot a businessman doesn’t know
about governm ent.”
We would say to him that there are a H ell of
a lot of officials in governm ent that know very
little about business and he is one of them.
3. Yes, Secretary Hodges, 1962 will be a pros­
perous year but, isn’t it time for us to assert
our God given rights as American citizens
and to oppose being led by the nose both at
home and abroad and stand up for the prin­
ciples and policies that have made our nation
great, and stop digging holes in the ground to
crawl into like a bunch of retarded, retreating
rats?

y

*

j

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00'
A É rRight:
John F. Lilly,
chairman of the board
St. Louis County
National Bank

“ Fast, efficient
drive-in servic©
». »attracts n©w
Says j o h n f . l i l l y , chairman of the board, St. Louis County
N ational Bank, Clayton, M issouri: “Fast, efficient motor­
banking service during early morning and late evening hours
has been a key factor in attracting new customers. With 29-30
per cent of demand deposit activity handled at drive-up, walk-up
windows, in-bank congestion has been reduced. The facilities
which Bank Building Corporation helped us plan and build
are performing very satisfactorily.”
St. Louis County National has one of the Midwest’s largest auto­
bank installations. To meet its unique operating and site require­
ments, Bank Building’s motor-bank specialists— the nation’s
most experienced— worked closely with the bank’s own officers.
Result: Maximum efficiency, maximum fulfillment of the bank’s
objectives. If you’re considering new or expanded motor facil­
ities, it will pay you, too, to call in Bank Building. Phone or
write for full information; no obligation whatever.

Traffic-engineered layout speeds
customers through five angle-islands

------ r-

I '

'

.

Sli ' *

S e e outstanding auto-bank operations acro ss
the U .S ., including St. Lo uis County National
Bank, in a brand-new , ph oto -pa cked book:

Auto banking on a broad, bold scale. Motor islands, left, connect
via tunnel with an underground bookkeeping room, which extends the
width of the huge parking lot, joins with the main building at right.

“ P la n n in g
G u i d e to
Su ccessfu l
M o to r
B a n k in g
in t h e ’ 60' s ”

successful
motor banking
in the
sixties

(re v is e d 1962 edition )

x

S e n d tod ay for y o u r F R E E co p y !


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

OF AMERICA
ST. LOUIS, 1130 Hampton Avenue . ATLANTA

. CHICAGO . D A L L A S. NEW YORK . SAN FRANCISC

A ninnilii-rs Total A u tom ation

A U T O M A T IO N E Q U IP M E N T to be in c lu d e d in th e M ellon N a tio n a l B a n k & T ru s t
C o m pany’s “ to ta l a u to m a tio n ” sy ste m is o b se rv ed b y R aym ond C. K olb, vice p re sid e n t
a n d c ash ie r. T he e q u ip m e n t show n h e re is a sp e c ia l N C R m a g n e tic im p rin te r. T he
b a n k w ill in s ta ll 45 o f th e se encoders. A ll tra n s a c tio n s fro m a ll d e p a rtm e n ts a re to be
p ro cessed th ro u g h th e “ to ta l a u to m a tio n ” system .

T

H E Mellon N ational B ank & T ru st
Com pany, P ittsb u rg h , last m o n th

announced plans for w h at is believed
to be th e first “to tal au tom ation sys-

DEPENDABILITY
L e t’s face it . . . what you are
seeking in a supplier is depend­
ability. Shopping around will get
you price, intelligent scrutiny will
get you quality, pounding the
table will get you service, but
when you deal with a dependable
supplier you get all three without
knocking yourself out. The more
you buy, the more significant is
this worry-free relationship.
As a supplier o f bank checks, we
are proud o f the fact that during a
year’s time we handle orders from
m ore than thirteen thousand
banks. The billing to some o f
these banks runs into important
money. To others, it is almost too
small to measure. In the aggre­
gate, the record shows that we
have doubled our business every
five years for the past thirty years
without benefit o f acquisitions,
and this o f course is gratifying.

During the course o f a year, we
execute over thirteen million indi­
vidual orders and are exposed to
over two hundred million oppor­
tunities for error. W e make a lot
o f errors, naturally, but last year
99.81% o f all our orders were ac­
curately handled. This, too, is gratifiying, not only because it repre­
sents pretty good performance but
more because o f its contribution to
this "worry-free” relationship which
we think is mutually desirable.
So our solicitation for your busi­
ness emphasizes dependability. We
could make a pitch on price, or
quality, or service, and from time
to time we do. But,in the final analy­
sis, we think if you look upon us as
being dependable people, we have a
better chance to win and hold your
business. In view of the new stat­
ure of bank checks, it might profit
you to check us out on this claim.

DELUXE CHECK PRINTERS
C L IF T O N
C H IC A G O

Nort hwest ern Banker, January, 1962


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

NORW ALK
K A N S A S C IT Y

PA O LI

CLEVELAND

ST. PA U L

DALLAS

D E T R O IT

INC.

IN D IA N A P O L IS

CH A TSW O RTH

PO R TLA N D

tern” in electronic b an k accounting.
A n u m ber of ban k com puter sys­
tem s process depositors’ accounts a n d /
or a lim ited com bination of o ther b ank
applications. Mellon Bank, how ever,
w ill electronically process all tra n sa c ­
tions from all departm ents.
A nnouncem ent of th e to tal au to m a­
tion system w as m ade by R aym ond C.
Kolb, vice p resid en t and cashier, after
a co ntract w as signed recen tly be­
tw een th e b ank and The N ational Cash
R egister Company. NCR w ill supply
45 special m agnetic encoders to be
used in conjunction w ith th e b a n k ’s
m ulti-m illion-dollar electronic account­
ing system now in operation.
T his new est “electronic m arv el” is a
special NCR “Class 41” sytem devel­
oped epecially for Mellon B ank d u ring
th e p ast y ear th ro u g h th e jo in t efforts
of NCR system specialists and b an k
peronnel headed by Mr. Kolb.
M ellon B ank has now invested ap ­
proxim ately $2.5 m illion in autom ation
equipm ent and plans to add an o th er
$1.5 m illion w o rth of equipm ent over
th e nex t 18 m onths.
Mr. Kolb, w ho headed developm ent
of th e b a n k ’s “to tal electronic account­
in g ” concept, w as a m em ber of the sixm an technical subcom m ittee of the
A m erican B an k er’s A ssociation w hich
w as form ed in 1956 to stu d y th e appli­
cation of electronic equipm ent to
banking. T his com m ittee w as respon­
sible for th e in tro d u ctio n of MICR
(M agnetic In k C haracter Recognition)
techniques in banks.

NABAC Personnel Seminars
Two sem inars dealing w ith basic
functions in personnel ad m in istratio n
w ill be staged early in 1962 by NABAC
The A ssociation for B ank A udit Con­
tro l and O peration. T hey w ill be u n d er
the auspices of th e NABAC P ersonnel
Commission.
The first sem inar w ill be held in the
S tatler H otel in W ashington, D. C.,
on Ja n u a ry 24-26. The second will be
conducted in th e M uhlebach H otel in
K ansas City, K ansas, M arch 21-23.
Both sem inars w ill cover th e sam e
subject areas, though n ot necessarily
w ith the sam e speakers.
A reas to be covered include discus­
sions on changing concepts in perso n ­
nel adm inistration, effective adm in­
istratio n of the em ploym ent function,
sound wage and salary practices, wage
and hour and o ther applicable laws,
and th e train in g and developm ent
function. O ther areas to be covered
are im provem ents in m anagerial p e r­
form ance, organization and w o rk p lan ­
ning, and the form s and records func­
tion.

15

V.

Twin d riv e-u p booths a t ty p ic a l T V B A N K
in stalla tio n .

T e lle r sta y s in side b u ild in g , m aintains p e r­
sonal relatio n sh ip with custom er through twow a y televisio n .

IS DRIVE-IN BANKING TOO CO STLY?
"Can t offer enough services to make
it worthwhile" . . . "Tough to supervise
tellers". . . "Security costs are too high."
Y o u ’ve probably heard these ob­
jections ro drive-in banking facilities
(you may even have raised a few o f
them yourself). But if you ’ve never
been sold on drive-in banking before,
y o u ’re due for a change o f heart . . .
once you ’ve seen drive-up TV B ank
in operation.
TV B a n k is a closed circuit tele­
vision system which lets the customer
bank from the car while the teller
stays inside the bank building. They
see each other, talk to each other,
and transact their business through
pneumatic tubes.
Designed, installed and serviced
by Business Furniture Corp. o f In­
dianapolis, TV B ank brings to your
bank the convenience and prestige

replace personnel working in existing
drive-in islands. If desired, the driveup facility can even be across the

of drive-up facilities at a cost that’s
surprisingly low. TV B ank offers im­
portant advantages like these:

street.
★

Greater efficiency and closer super­
vision of tellers is maintained. During
slack periods one teller can service
two lines.

★ The "personal touch” is not lost be­
cause teller and customer can con­
verse exactly as though they were
face to face . . . it’s like doing business
inside the bank.
★ Saves time and trouble for both cus­
tomers and bank by offering a more
complete and efficient drive-in serv­
ice. Check identification, posting of
savings accounts, loan payments and
other drive-in services never before
possible can now be readily pro­
vided.

★ Extra security costs and problems of
moving cash to and from the drive-in
"cage” are eliminated.

Remember— the only product a bank
has to sell is service . . . and TV B ank
is unquestionably one of the m ost
significant service developments in
banking history. Y our TV B ank sales
engineer will be glad to give you the
complete story on how a customtailored TV B a n k system can be
added to your bank.

★ Components are flexible enough to
fit any size bank operation. They can

BANK

Division of

BUSINESS

C O R P O R A T I ON

FURNITURE

®

D e sig n e rs an d M a n u fa c tu re rs o f C o m p le te Bank In fe rio rs
101

S.

PENNSYLVANIA


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

STREET

•

INDIANAPOLIS,

I NDIANA

•

M E I r os e

2-1474

Northwestern Banker, January, 1962

16

Hobt»/ Visits

With
V

COIN

WRAPPER

. . . has a "pmondiilf!"
B Y GEORGE: George, a n e le c tro n ic ro b o t a t V a lle y N a tio n a l B a n k ’s o p e ra tio n s c e n te r,
c h a ts w ith a d is tin g u is h e d g ro u p o f v isito rs . F ro m le f t th e y a re E ugene V an D yck,
B ell T elephone Co. e x e c u tiv e fro m A n tw e rp , B e lg iu m ; Louis J. M aton, d ire c to r-g e n e ra l,
Office des C heques, P o s ta u x , B e lg iu m ; R obert M acQueen, IT & T p ro je c t m a n a g e r a t th e
c e n te r; W illiam M acAUen, V N B m a n a g e r, a n d J. R. D eH art, IT & T official fro m N ew
J e rs e y . G eorge w as b u ilt b y H erb F ielder, in c h arg e o f th e V N B c e n te r’s m a in te n a n c e .

Harris Trust .1nnimurrs
i*roinotious unti
. z w i e n e r , p resi­
dent, H a rris T ru st and Savings
Bank, Chicago, has announced th a t
C arroll E. P rater, A. Newell R um pf
and E r r e tt Van Nice w ere nam ed
senior vice presidents, all th ree hav-

K

enneth

PRATER

N o n e o t h e r is s o a c c u r a t e . M a d e
by special m a c h in e th at afford s
t h i s u n u s u a l p r e c i s io n . . . a n y
c h a n c e o f e rr o r is e l i m i n a t e d .
T h e p a te n t e d red b o rd e re d
w in d o w s r e v e a l i n g a m o u n t
a n d d e n o m i n a t i o n of c o i n s ,
a f fo r d “ e a s e of v i s i b i l i t y ” . T h e
" S te e I - S t ro n g ” A u t o m a t ic
W ra p p e r is u n e q u a l l e d by
co m p etitio n !
THE

NO. 1 S E L L E R

IN A M E R I C A !
__________________ jgi

TheZ.V.D
O
W
N
EY
SEE

YOUR

DEALER
SEND
FREE

OR

FOR
S A MP L E S

H A N N IB A L , M IS S O U R I
W o r l d ’s L a r g e s t M f r .
o f C o in W r a p p e r s

Nortfor
hwest
ern Banker, January, 1962
Digitized
FRASER

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

v

R UM PF

V A N N IC E

ing previously been vice presidents.
Mr. P ra te r cam e to H arris T ru st as
vice p resid en t du rin g th e b an k ’s m er­
ger w ith Chicago N ational in October
of 1960; Mr. R um pf has been w ith the
b an k since 1930, becam e an officer in
1943 and vice p resid en t in 1948; Mr.
Van Nice joined the staff in 1930, be­
com ing vice presid en t in 1949.
C harles J. Roubik, vice president,
tru s t d epartm ent, has been elected
vice p resid en t and secretary.
New vice p residents include R ay­
m ond J. Coakley, form erly auditor,
an d G regg A. H u n ter and A lbert H.
MacLeod, form erly a ssistan t vice p res­
idents. .John M. B arney w as advanced
from a ssistan t au d ito r to auditor.
New a ssistan t vice p residents are

P hilip A. D elaney and Theodore H.
R oberts, form erly a ssistan t cashiers,
and M artin J. M orrison, Jew ell L.
Shields and F red G. W angelin, form er­
ly a ssistan t secretaries. N ew ly nam ed
officers of th e b ank are R ussell L.
M itchem and Ja rv is L. Spreng, a ssist­
a n t secretaries; E lm er Kodidek, assist­
an t auditor, and M ark A. O’Leary, San
Francisco sales rep resen tativ e nam ed
sales m anager in th e In v estm en t De­
p artm ent.
H arold B. Bray, senior vice p resi­
dent, is one of four officers w ho retired
D ecem ber 31. W. A. Milsted, secretary,
L aurence R. Cooper, a ssistan t vice
president, both in the tru s t d e p a rt­
m ent, and Jo h n W. Test, assistan t
cashier in the consum er credit d ep art­
m ent are the others w ho retired.

1

A

Total Assets Increase
Total assets in the C ontinental
Illinois In v estm en t T ru st for E m ­
ploye Benefit P lans increased 54.4 per
cent du rin g th e fiscal year of 1961
ended Septem ber 30, according to the
tr u s t’s sixth an n u al report.
A ssets am ounted to $95,375,565 at
the close of th e year, com pared w ith
$61,757,524 a y ear ago. C ontributing
to the significant grow th w as an in ­
crease of 100.3 per cent in the asset
value of the tr u s t’s equity fund.

j

V

17

We asked William J. Martin —

“Why is Chase Manhattan your New York correspondent?”
William J. Martin, President, South
Shore National Bank of Quincy,
Mass., put it this way:
“Oh, lots of reasons,” he told us,
“and particularly the way Roger
L yon here and his people think
along with us on our investment pro­
gram. They come up with some pretty
ingenious ideas . . . say, how about
joining our coffee break.”
Bill Martin’s answer to our ques­
tion is shared by hundreds of banks,
large and small, that regularly use
Chase Manhattan’s Bank Portfolio

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

Review Service. But perhaps the out­
standing reason we’ve been able to
provide a service that pleases so many
is the fact that Roger Lyon and his
skilled staff devote all their energies
to this single task — analyzing bank
portfolios.
Isn’t this the kind of undivided
attention you’d like when you need
outside help with your bank’s invest­
ments? If so, why not send for our
“Portfolio Review Booklet” describ­
ing the many ways your bank can
benefit. Write Roger A. Lyon, VicePresident, for your copy today.

T H E

CHASE
M A N H A TTA N
BANK
C H A R T E R E D IN 1799

1 Chase Manhattan Plaza,
New York 15, New York
Member Federal Deposit Insurance Corporation

Northwestern Banker, January, 1962

18

B a n k ers .I irei 4/h W inners

E M PL O Y E E S OF TWO la rg e c o rre sp o n d e n t b a n k s w e re am ong th o se w in n in g p rize s
in A m e ric a n E x p re s s C o m p an y ’s re c e n t “ B a n k e rs A w eigli” c o n te st. A t le ft, D avid H.
Reim ers, p re s id e n t, L iv e S to c k N a tio n a l B a n k o f C hicago, c o n g ra tu la te s M ichelle John­
ston, a w in n e r fro m t h a t b a n k . I n th e b a c k g ro u n d is L. B. Achor, v ice p re sid e n t. A t
r ig h t, J a c k D. Porter, v ice p re s id e n t, F i r s t N a tio n a l B a n k & T ru s t C om pany, T ulsa,
c o n g ra tu la te s E lizab eth M cDonald, fifth p lac e w in n e r, a n d H azel Cole, s e v e n th place
W inner, fro m th e F i r s t o f T ulsa.

declaration by VNB directors of a
fo u rth q u a rte r dividend of 25 cents
p er share, paid Dec. 22 to stock­
holders of record Dec. 8. It totaled
$576,751.75.

Valley National Pays
Cash Dividends and Bonuses
A record $2.3 m illion in cash divi­
dends w as paid last m o n th to sh a re ­
holders of A rizona’s statew ide V alley
N ational B ank.
T he am o u n t w as m ade possible w ith

A nnounced by board c h a i r m a n
W alter R. Bimson, th e action brings

That Block of Stock. . .
Maybe it seems too big for handling in the regular way if the current
market’s thin or there’s not too much activity in the stock.
Maybe on the other hand it’s not big enough to qualify for special
handling under New York Stock Exchange regulations.
Nevertheless, whether you want to buy or sell that block of stock,
you want a fair price on it, and you don’t want your purchase or sale
to create any drastic movement in the market.
What can you do about it?
Well, for eighteen years now, we’ve had our own Special Handling
Unit right here at Merrill Lynch that does nothing but execute such
orders through the facilities of the New York Stock Exchange.
Working closely with insurance companies, pension funds, banks, and
thousands of Merrill Lynch customers known to have a particular
interest in certain stocks, the Special Handling Unit does a surprisingly
successful job of finding buyers and sellers to cross large blocks on the
floor at advantageous prices to both clients.
So, if you’re ever interested in buying or selling a block of stock
with minimum fanfare and maximum results, simply call, or write a
confidential letter to —
E

dm und

C.

L

ynch

L ester A rm our, vice ch airm an of
the board of directors of H arris T ru st
and Savings Bank, Chicago, has been
elected chairm an of the Illinois In ­
stitu te of Technology board of tru s ­
tees, and D elbert N. U rick, vice p resi­
dent and com ptroller, has been re ­
elected a d irector of th e Chicago Crim e
Commission.

Continental Gets Approval
For International Corporations
C ontinental Illinois N ational B ank
and T ru st Com pany recen tly received
p relim in ary approval from th e F e d ­
eral R eserve Board to establish tw o
in tern atio n al corporations.
The new com panies — C ontinental
In te rn a tio n a l B anking C orporation
and C ontinental In te rn a tio n a l Finance
C orporation—are now being organized
and w ill begin operating som e tim e
th is new year as w holly ow ned sub­
sidiaries of C ontinental Bank. In i­
tially each w ill be capitalized a t $2
million.
David M. K ennedy, C ontinental
board chairm an, w ill serve as ch air­
m an of both new in tern atio n al organi­
zations. The finance corporation w ill
office in the C ontinental B ank B uild­
ing, 231 South La Salle Street; th e
ban k in g corporation, 71 Broadw ay,
N ew York.
Mr. K ennedy said th is is an o th er
step in expanding C ontinental B ank’s
in tern atio n al business. L ast April,
C ontinental announced plans to open
a b ran ch b ank in London earlv in
1962.

La Salle National Prom otions

M ERRILL LYNCH,
PIERCE, F E N N E R & SM ITH

I I MC

MEMBERS NEW YORK STOCK EXCHANGE AND OTHER PRINCIPAL STOCK AND COMMODITY EXCHANGES
70 PINE STR EET, NEW YORK 5, NEW YORK

Nort hwest ern Banker, January, 1962

Chicago Bankers Elected

, Jr .

Vice President


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Federal Reserve Bank of St. Louis

total cash dividends for the y ear to
$1 p er share on 2,307,007 shares c u r­
re n tly outstanding. In addition, a
th ree p er cent stock dividend w as
paid earlier in th e year.
C u rren tly 41st larg est com m ercial
b ank in th e nation, V alley B ank re ­
p o rted resources of $684 m illion and
deposits of $615 m illion in its m id­
y ear statem en t to stockholders.
A rizona’s C hristm as shopping econ­
om y w as “sw eetened” by n early twoth ird s of a m illion dollars as a resu lt
of a $630,000 year-end bonus for V alley
N ational B ank em ployees. The bonus
w as paid early in D ecem ber to some
2,100 staff m em bers in 71 offices in
every A rizona county.

D irectors of th e La Salle N ational
Bank, Chicago, recen tly appointed
E dm und D. Jan uchow ski and Jo h n P.
R eynolds tru s t officers, announces
H arold Meidell, president.
Mr. Jan uchow ski had been ap ­
pointed assistan t tru s t officer in 1955;
Mr. Reynolds, in 1952.

19

Automation?

Let’s talk
about banks
and
people
Banks all over the country are announcing the big switch to automation.
You’ll be hearing about how fast and how accurate the new data processing
systems are.
We agree.
These machines and other similar equipment do speed up record-keeping, help
reduce errors and cut costs of processing important data.
Here at the Am erican N ational Bank, too, we have a complete electronic
“ assembly line” which serves our customers.
But there’s a lot more to good banking than electronic wonders.
People—our people—the people who serve you at the American National Bank
are much more important than all the bank machines that were ever invented.
No computer has a heart. People have.
No computer can evaluate character and ability. People can.
No computer can understand the financial problems of new business enterprises
and growing businesses. People can.
We’re justifiably proud of our electronic equipment at the American National . . .
but we’re much prouder of the people who staff our organization.
With the help of computers (and other machines) we serve thousands of people . . .
but we serve them one at a time.
Come in. See our machines.
But most important, meet our people.

Américain National Bank
AND TRUST COMPANY OF CHICAGO/LA SALLE AT WASHINGTON
M EM BER FED ER AL D EP O S IT IN S U R A N C E C O R P O R A TIO N


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

Nort hwest ern Banker, January, 1962

20
i

<
1

RESOLVED that we si
endeavor to serve every
it were the only one we
RESOLVED—that we
further augment and
Correspondent Service.
Nr

RESOLVED— that by <

continue in our effort
will and friendship re
of Correspondent Acc

Central Nat
and Trust Company

Des Moines, Iowa
A

DEPOSIT INSURANCE CORPORATION

i

Nort hwest ern Banker, January,


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

1962

1

Nort hwest ern Banker, January, 1962


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

22

t

PLANNING TO SELL?
IF

— you are planning to sell your bank and you want It
sold confidentially;

IF

— you want to confer only with carefully screened pros­
pects— men who are ready to buy and have the
necessary capital at their command;

IF

— you want the sale handled with as little commotion
as possible and with a minimumof effort on your part,

seek
THEN-—

the services, advice, and counsel of men who
have had many years of experience in this field—
men who devote their entire time to selling banks.

is possible you can make a sale with the help of
friends, your correspondent, or even a blind ad —
and avoid the payment of a commission—but avoiding the payment of a commission is not the m ost im­
p o rtan t thing in selling a bank.

^

/
V

It
SURE-—

WHO - - pays the commission?

— the purchaser, of course—
either directly or indirectly, as a part of the purchase
price.
if no commission is involved? — the pur­
chaser, through reduction in price.

^

f
„

WHO - - benefits

WHY

GET

— deny yourself the benefit of services of Specialists
with long experience, when the purchaser pays the
cost.

i

■

—■the facts before making any definite commitments.
You can consult us in confidence without cost or obligation. All correspondence and negotiations are
strictly confidential.

+
A
>

j.

BANKERS SERVICE COMPANY
1301 Register and Tribune Building
DES MOINES 9, IOWA
HENRY H. BYERS, President
Nort hwest ern Banker, January, 1962


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

ERWIN W. JONES, Vice President

E. G. UNTIEDT, Vice President

23

W hat’s Ahead
for 1962

H E outlook for business d u rin g
th e first six m o n th s of 1962 is
h ig h ly optim istic, according to
several leading b a n k e rs interview ed
last m o n th b y th e N o r t h w e s t e r n
B anker.
Most w ere also in general
ag reem en t th a t th e forw ard m oving
econom y w ould b rin g a stead y u p w ard
tre n d th ro u g h o u t th e e n tire year.
Some of th e factors cited as the
basis for th e favorable outlook are th e
high level of perso n al incom e, in ­
creased ra te of savings d u rin g 1961 by
individuals, stepped up consum er
spending in th e last q u a rte r of 1961,
w h a t ap p ears to be an u p tu rn in auto
sales and probable expansion in p lan t
capital ex p en d itu res in th e n e x t few
m onths.
T he new, perm issive 4 per cent in ­
te re s t ra te level on tim e deposits in
com m ercial b an k s w as looked upon
w ith m ixed em otions. In general,
m any b an k s are adopting a “w ait and
see” attitu d e , sta tin g th a t th e cost fac­
to r m u st be w eighed h eavily before
tak in g such a step.
H ere are th e com m ents on th e b u si­
ness outlook from several p ro m in en t
b ankers:

T

JAMES M.
KEMPER, JR.
President
Commerce Trust
Company
Kansas City
Missouri

■ W e look fo rw ard to a v e ry p ro sp er­
ous opening for th e new y e a r in b u si­

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Federal Reserve Bank of St. Louis

ness, b u t m u st tem per our optim ism
w ith th e realization th a t we are facing
an o th er possible steel strik e n e x t sum ­
m er, and also a d istu rb in g situ atio n in
our in te rn atio n al balance of paym ents.
B oth of these factors could re su lt in a
dow n-turn in th e last six m onths of
th e year.
W e are analyzing th e four p er cent
savings ra te v ery carefully. W e th in k
b an k s w ill have to w ork h a rd to de­
velop sound loans b u t th a t in terest
ra te s on loans, p a rticu larly for the
te rm v ariety, w ill firm up considerably.

LEO R.
GRUBER
President
The Drovers
Banks
Chicago
Illinois

■ W e plan on doing no th in g about in ­
creasing in te re st ra te s on savings and
tim e deposits unless c o m p e t i t i o n
forces us into some o th er operation.
I do not feel th a t any of us can ju s ti­
fy an y d eterio ratio n of assets or th a t
w e should in any w ay jeopardize our
liquidity. I feel th a t savings deposits
are left w ith us in tru s t and th a t we
should apply th e p ru d e n t m an ru le
reg ard in g th e ir safety ra th e r th an
speculative income.
I th in k th a t loans w ill be definitely
up and I hope th a t th e ban k s w ill be
able to secure th e deposits to m ake
them .
An increased savings in te re st rate

could have a depressing effect upon
lending rates. If th e ban k s and o th er
financial in stitu tio n s are flooded w ith
additional deposits because of h igher
rates, th ey m ay have trouble in v estin g
funds, p artic u la rly in sound m o rt­
gages, w hich m ig h t ten d to depress
rates.

S. C.
P I DC EO N
President
Bankers Trust
Company
Des Moines
Iowa

■ We have given a g reat deal of
th o u g h t to th e business prospects of
1962 and it is m y opinion th a t th e
overall business conditions should be
favorable.
As to th e new perm issive savings
in te re st rates th ere seem s to be no
com m on th in k in g as of yet, b u t m y
ju d g m en t is th a t it w ill undoubtedly
b rin g about h ig h er in te re st rates paid
by th e m ajo rity of th e banks in our
state. It is m y opinion th a t the 4 per
cent ra te is a v ery difficult one for us
to u n d ertak e because of th e fact th a t
m oney is p lentiful at th e p resen t time.
W hile th e loan dem and is h ealth y yet
th ere seem s to be an am ple supply for
practically all legitim ate needs. In th e
m ortgage field th e re is certain ly am ple
m oney available for in v estm en t b u t by
reason of increasing overhead I ques­
tion if rates w ill m aterially soften and
I w ould expect th a t th e re is a stro n g
possibility th a t th ey m ight slightly
Nort hwest ern Banker, January, 1962

24

A Northwestern Banker Survey

. . ou tlook is f o r in crea sed deposits a n d loan r a te s ’’
stren g th e n . The outlook for in creas­
in g b a n k deposits is favorable and
th e y w ill probably increase from th e ir
p re se n t levels.
I know of no reason w h y th e loan
dem and should not continue and th e re
seem s to be some possibility th a t in
certain areas it is conceivable th a t it
w ill im prove.

C. A.
LOYRE
President
Northwest Security
National Bank
Sioux Falls
South Dakota

■ Our mood is one of optim ism as the
y e a r 1961 closes and 1962 begins. We
an ticip ate a favorable econom y in our
area and th e n ation as a whole. T his
area is v ery d ependent on ag ricu ltu re
and th e last tw o y ears have been p ro s­
perous agriculture-w ise. Thus, th is has
n a tu ra lly len t g re a t stre n g th to the
econom y in o u r area, and w ill con­
tin u e to lend a favorable effect d u rin g
1962. G eneral b u siness activ ity in
South D akota show ed increases durin g
1961, and we see n o th in g th a t w ill re ­
v erse th is general tren d , at least d u r­
ing th e early p a rt of 1962. In view ing
cattle auction sales as w ell as general
farm auction sales in our area, it ap­
pears th a t farm ers are optim istic and
are in m ore of a “spen d in g ” mood
th a n a t th e close of 1959 and 1960.
T here has been a tre n d tow ard in ­
creased b a n k liq u id ity in our area and
as a re su lt th e re has not been a tig h t
cred it situation.
W e see m an y signs in our N ational
econom y w hich indicate a prosperous
1962, in th e m aking. P erso n al incom es
have been a t record levels and w ith
savings also at a high level, consum er
spendin g should increase. T his in
tu rn w ill induce fu rth e r in d u stria l p ro ­
d u ctio n and capital investm ent. In ­
creased defense spending should have
a su b sta n tia l effect on our N atio n ’s
econom y.
T he p a tte rn w hich seem s to be de­
veloping is th a t m ost of th e b an k s in
th is area will, a fte r th e first of th e
year, be paying 4 p er cent on 12-month
C.D.’s, 3% p er cent on 6-month C.D.’s,
w ith no change in the ra te of in te re st
being paid on savings accounts. The
Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

h ig h er ra tes will, w ith o u t doubt, have
an adverse effect on b ank profits. The
effect on profits could be even g reater
th an we anticipate at this tim e be­
cause th e new rates should a ttra c t
considerable new m oney and w ill en­
courage tra n sfe rs from dem and and
savings accounts. I t w ill be difficult
to inv est th e 4 p er cent m oney at a
profit.
Since May of 1961, our deposits have
been considerably ahead of th e same
periods a year ago, w hile loans have
been ru n n in g slightly behind. W e an ­
ticipate th a t our deposits will rem ain
quite co n stan t du rin g the first p a rt of
1962, and the tren d du rin g th e last half
of the y ear w ill be influenced to a
large ex ten t by the 1962 crop. W e an ­
ticipate the loan dem and will s ta rt to
stre n g th e n after th e first of th e year
and con tinue upw ard, at least during
th e larg er p a rt of 1962.
It is our opinion th a t in te re st rates
on loans w ill have to go up in order to
offset a t least a portion of the in ­
creased cost of our tim e m oney and
oth er increases in operating expenses.

S. CLARK
BEISE
President
Bank of America
San Francisco
California

fg S tren g th depth w ill h ighlight total
U. S. business and in d u strial activity
d u rin g 1962.
As gross n ational production m oves
to approxim ately $565 billion by m id­
y e a r and $580 billion or m ore 12
m onths from now, consum er spending
in all lines, bolstered by federal gov­
ern m e n t outlays, w ill give our econ­
om y a p a tte rn of continuing expan­
sion. In v en to ry buildup and residential
b uilding activ ity w ill prove to be
stro n g factors, especially in the early
p a rt of n ex t year.
The tem po of fixed capital expendi­
tu re s is expected to provide additional
support, p a rticu larly d u rin g th e la tte r
p a rt of 1962. As a result, unem ploy­
m en t should decline.
In banking, deposit and loan totals
should m ain tain th e ir upw ard tren d
as th e m onths go by. W e expect a con­

tin u atio n of the upw ard tren d of rates
evident in the m oney m ark et and this,
of course, w ill be evident ultim ately in
loan rates. B anks generally are v ery
liquid and in a position to finance con­
siderable loan expansion.

GAYLORD A.
FREEMAN, JR.
President
The First National
Bank of Chicago
Chicago
Illinois

■ The sanguine business outlook for
1962 im plies an associated up w ard
tre n d in in te re st rates, b an k loans and
deposits. The expected h igher level of
sales w ill req u ire additional w orking
capital in th e form of business in v en ­
tories and for enlarged payrolls and
trad e credit. M uch of this can be ex­
pected to req u ire larg er b an k loans.
In addition to g reater business de­
m ands for short-term b ank credit, we
anticipate th a t th e pick-up in auto
sales w ill stim ulate th e generation of
m ore in stalm en t credit and th a t p lan t
and equipm ent spending w ill entail
th e expanded use of term loans. If the
go v ern m en t’s estim ates of increased
housing and th e m ore probable in ­
crease in o ther construction prove co r­
rect, some fu rth e r dem and for m o rt­
gage m oney w ill result.
T his risin g dem and for m oney w ill
probably ex ert an upw ard pressu re on
in te re st rates. T he fact th a t rates did
not fall off m ore sh arp ly d u rin g th e
business decline m ay prove to be a
factor in th e ir n o t risin g as rap id ly as
th e expansion in business. M uch w ill
depend on F ed eral R eserve policy b u t
we can expect th a t if business activity
develops to th e point th a t inflation
again th re a te n s seriously, in terest
rates w ill n o t be restrain ed from going
up. A tig h te r m oney policy can be ex­
pected n ex t year, possibly early in th e
year.
The new perm issive 4 p er cent sav­
ings in te re st rate can be expected to
have m ultiple effects on the econom y
and on the b anking in d u stry in p a r­
ticular. In m ore general term s, it is
hoped th a t it w ill call fo rth a g reater
flow of savings w hich w ill provide
funds for th e expected rise in in v est­
m ent ex p en ditures and facilitate cap-

25
ita l grow th. More p a rtic u la rly it will,
of course, in crease o p eratin g costs of
th e b an k in g in d u stry . H ow ever, if
sufficient funds are a ttra c te d to th e
h an k s and th e dem and increases as
rap id ly as w e anticipate, th e profitable
em ploy m en t of these funds m ay offset
th e increase in expense.

in te r e st
H ate
O
B ecom es Center o f A tten tio n
NCREASED in te re st rates on sav­
ings deposits w as upperm ost in the
m inds of m ost bank executives
th ro u g h o u t th e nation last m onth, fol­
low ing a change in R egulation Q an ­
nounced by th e board of governors of
th e F ed eral R eserve Board.
In th e announcem ent the F ed eral
R eserve Board, for th e first tim e since
th e R egulation w as issued in th e early
’30s, gave perm ission for com m ercial
b an k s to pay above 3 per cent on sav­
ings and tim e deposits. The Federal
D eposit Insu ran ce C orporation issued
a sim ilar in te rp re ta tio n t h r o u g h
C hairm an E rie Cocke, Sr.
The new regulation p erm its FRBFD IC m em ber banks to pay 3% per­
cent on deposits of from six m onths to
one y e a r’s duration, and 4 p er cent on
deposits of over one y e a r’s duration.
F o r some tim e, a su b stan tial n u m ­
ber of banks have contended the 3
per cent m axim um ra te has restricted
them in th e ir efforts to com pete for
savings and tim e deposits.
The h ig h er rates m ay also enable
th e large com m ercial banks in the
financial centers to com pete for for­
eign funds, and th is should have a
te m p o ra ry favorable effect on the
n a tio n ’s balance of paym ents.
It is felt by m any au th o rities th a t
n o t all com m ercial banks are in a posi­
tio n to pay 3V2 to 4 p er cent on sav­
ings deposits, and th a t it is certainly
n o t advisable for them to p erm it a
d eterio ration in th e quality of th eir
assets to m eet th e in te re st rate paid
by com peting in stitutions.
In the N o r t h w e s t e r n B a n k e r area
th e initial m ove tow ard adoption of
h ig h er in te re st rates w as led th is tim e
by sm aller banks for th e m ost part.
F ive years ago, the pu sh to boost the
in te re st rates up to 3 per cent from a
previous lim it of 2% p er cent came
from larg er banks.
The v ast m ajo rity of banks in th e
n o rth cen tral area, both large and
small, have adopted a “w ait-and-see”
attitu d e. W hen th e ra te w as raised
from 2Vz p er cent to 3 p er cent in
1957, th e re w as no w ild ru sh on the
p a rt of banks in th e area to adopt the
3 p er cent figure. T he rates advanced
gradually, and it is believed th a t the
sam e th in g w ill happen now in the
m ajo rity of cases.
Most of th e larg er New Y ork com­

I

>

JAMES P.
HICKOK
President
First National Bank
in St. Louis
St. Louis
Missouri

■ O ptim ism c u rre n tly dom inates the
econom ic scene as g eneral business
conditions continue to im prove.
T his is in m ark ed co n tra st w ith a
y e a r ago w hen th e re w as considerable
u n c e rta in ty as to w h en th e 1960 reces­
sion m ight end. C ertain au th o rities
predicted th a t th e tro u g h of th e de­
cline m ig h t be reached in th e first
q u a rte r of 1961. F ew an ticipated th a t
b y now th e econom y w ould already
have enjoyed com plete recovery.
This, how ever, is th e case. Most of
th e significant indicators of over-all
econom ic activ ity have not only risen
to pre-recession levels; th ey have ac­
tu ally m oved up to new highs.
In ju d g in g th e probable d u ratio n of
th e c u rre n t upsw ing, it is w ell to be
m indfu l of th e m ajor factors from
w hich it stem m ed. T hese p rim a rily
w ere stepped up in v e n to ry rep len ish ­
m en t b y b u siness and sh arp ly in ­
creased outlays by th e F ed eral Gov­
ern m en t. A lthough stepped up F e d ­
e ral spending is likely to go on for
som e tim e, continued b u y in g by b u si­
ness, in th e last analysis, depends on
sales.
R etail sales u su ally expand m ore
rap id ly in th e la te r phases of economic
expansion th a n in th e early stages.
B u t consum er buy in g of goods in th e
p resen t recovery has ten d ed to be
m ore th a n u su ally sluggish, both early
and late. T his is tru e in spite of a gain
of five p er cent in personal incom e and
about th e sam e am o u n t of increase in
consum er ex p en d itu res for services.
T he ra te of saving has also continued
at high levels. The reaso n for th e lag
in consum er spending for goods m ay
be found in th e d istu rb in g p ercentage
of th e w o rk force th a t rem ain s u n em ­
ployed, th e record am ounts of instalO U T 1 /O O K . . .

(T u rn to page 26, please)

m ercial banks have announced an in ­
crease from 3 per cent to 3% per cent
on all savings w ith an additional half
of one p er cent on balances w hich
have been on deposit for four consecu­
tive qu arters. The m ajo rity apply th e
new rates on accounts up to $25,000.
Follow ing a series of long-distance
telephone conversations on Decem ber
27, the N orthw estern B anker rep o rts
th e follow ing action taken by banks
in a num ber of the larg er financial
centers in its area:
C H IC A G O : N o ch a n g e from 3 % . In te rest b y
m ost banks co n tin u es to b e figu red d a ily and
p a id q uarterly.
T W IN
C D s and
co n tin u es
co n tin u e

C IT IE S : Banks to p a y 4 % on o n e y ea r
3Vz on six m onth C D s. T h e 3% rate
on regular sa v in g s. S a v in g s and L oan s
at 4 % .

O M AH A: M ajor b ank s h a v e m a d e no ch a n g e.
C en ter B ank has offered 4 % on o n e-y ea r C D s and
3 1/¿ % on six-m on th C D s.
L IN C O L N : Both m ajor b a n k s h a v e ra ised oney ea r C D s to 4 % . S ta y in g at 3% on reg u la r sa v ­
in g s.
ST . L O U IS:
b ank s.

No

ch a n g e

above

3% b y

m ajor

K A N SA S C IT Y ; L arger b ank s p lan 4 % on
p assb o o k sa v in g s h eld for on e year and 3V2 % on
sa v in g s h eld six m o n th s. N o C D s.
ST . TOSEPH:
C D s.

B anks to p a y 4 %

on o n e year

D E N V E R : L arger b ank s a n n o u n ced 3V z% in ­
tere st on a d a ily b a sis, w ith an Vs o f 1 %
b onu s ea c h q uarter on lo w b a la n c e o f accoun t
d urin g p ast year. B anks w ill b e p a y in g o n ly V2%
le ss th a n sa v in g s and lo a n s.
SA N F R A N C ISC O :
m ajor b ank s.
LOS A N G E L E S :
m ajor bank s.

No
No

ch a n g e
ch a n g e

from
from

3%

by

3%

by

W Y O M IN G : R ates o f 4 % a n n o u n ced b y b oth
b ank s in L usk; A m erica n N a tl., C h e y en n e , and
F irst N a tl., C asper.
C E D A R R A P ID S : N o ch a n g e a b o v e 3% w ith in
c ity or in M arion. M an y sm a ller b ank s in a d jo in ­
in g co u n ties h a v e g o n e to 4 % rate on C D s.
D A V E N P O R T : Q u ad C ity and b ank s in S co tt
C o u n ty area h a v e g o n e to 4 % on o n e-y ea r C D s.
W ill co n tin u e 3% on p a ssb o o k sa v in g s.
D E S M O IN E S: L ea d b y F irst F e d e ra l S ta te
B an k , a ll m ajor D es M o in es b ank s are o fferin g 4 %
on o n e-year C D s and 3 1/ 2 % on six-m onth C D s.
R eg u la r sa v in g s co n tin u e to d raw 3 % . S a v in g s
& L oan s co n tin u e at 4 % .
DUBUQUE:
R ate on reg u la r sa v in g s ra ised
from 2% to 2V 2% - F irst N a tio n a l an d D u b u q u e
Bk. & Tr. o fferin g 3V2 on o n e-y ea r C D s. A m eri­
can Tr. & S av. is n o w o fferin g 3% on C D s.
M A SO N C ITY :
M ason C ity b a n k s and all
Cerro G ordo C o u n ty b ank s w ill p a y 4 % on oney ea r C D s and co n tin u e to p a y 3 % on regular
sa v in g s.
O T T U M W A : B anks to p a y 4 % on on e-year
C D s and 3% on six-m on th C D s. A rate o f 2%
w ill co n tin u e on reg u la r sa y in g s.
S IO U X C ITY :
p resen t 3% rate.

No

ch a n g es

a n n o u n ced

from

W A T E R L O O : B anks to p ay 4% on o n e-year
C D s and 3 V i% on six-m on th C D s. A rate o f 3%
w ill co n tin u e on reg u la r sa v in g s.
T h e situ a tio n is c h a n g in g so ra p id ly th at it is
im p o ssib le to p resen t a co m p le te report. A m ore
ex ten siv e a n a ly sis w ill b e m a d e in th e n ex t issu e.

Northwestern Banker, January, 1962


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Federal Reserve Bank of St. Louis

26

A Northwestern Banker Survey

. . con su m m er sp en d in g is on th e rise 99
m en t debt o u tstan d in g and a slacken­
ing in th e ra te of fam ily form ation.
U nder such circum stances, it is
doubtful w h e th e r b u siness in v en to ry
b uying can be counted upon to con­
trib u te m uch to fu rth e r economic ex­
pansion beyond th e m iddle of 1962.
A dditional caution in pred ictin g the
extension of th e p re se n t upsw ing be­
yond th e first half of 1962 is to be
found in th e latest su rv ey of business
capital ex p en d itu res for p lan t and
equipm ent. I t is h ere to be noted th a t
capital ex p en d itu res have been declin­
ing for some tim e in relatio n to the
value of all goods and services p ro ­
duced.
I t is no coincidence th a t th e sam e
has generally been tru e of corporate
earnings. The explanation is to be
found in dim in ish in g profit m argins.
P rofit contractio n has resu lted from
th e inab ility of business and in d u stry
to boost prices in th e face of p ersisten t
rises in costs of labor and m aterials.
T his in ab ility stem s from com petition
a t hom e and abroad and is in p a rt also
th e reflection of an a p p a re n tly adverse
attitu d e to w ard b u siness profits on th e
p a rt of th e F ed eral G overnm ent.
On th e o th er hand, as a su b stitu te
for profits, th e G overnm ent is now
stu d y in g th e possible revision of tax
tre a tm e n t of depreciation as an in ­
centive to increased business capital
outlays. Econom ic expansion beyond
th e nex t few m onths, therefore, will
depend largely on th e tim eliness and
effectiveness of th e A d m in istratio n ’s
efforts in th is area.
In th e last analysis, co n sisten t eco­
nom ic g row th can only be realized by
follow ing sound economic policies—•
p articu la rly in th e co n tain m en t of th e
w age-price sp iral th a t tends to price
A m erican p roducts out of increasingly
com petitive w orld m arkets.

C. L.
ADAMS
President
Live Stock
National Bank
Sioux City
Iowa

■ A t the p re se n t tim e we do not plan
to increase in te re st ra te s on savings
deposits and tim e certificates. H ow ­
Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

ever, fu tu re events could change our
plans.
O peration costs in banks have been
tre n d in g upw ard year after year, and
w ith th e additional increase in the
m inim um w age scheduled for 1963,
th is tre n d w ill continue. On th e other
side, w ith a m axim um loan rate of 7
p er cent, in te re st ra te s in Iow a are
not, and cannot be, as high as rates in
o th er states having m axim um legal
co n tract rates of 8 per cent to 10 per
cen t and higher. If the increase in
tim e m oney rates becomes w idespread
th e re could be a tre n d to m arginal
loans at h ig h er rates in com m ercial
banks, w hich is n ot a h ealth y situ a­
tion.
W e have been blessed w ith an ex­
cellent crop in our area th is year, and
it is our opinion th a t b an k deposits
and loans w ill hold up w ell during
1962 and in te re st rates should ten d to
increase m oderately.

F G
McCLINTOCK
President
First National Bank
and Trust Company
of Tulsa
Tulsa
Oklahoma

■ We, like a great num ber of other
banks, have only discussed the new
perm issive 4 per cent in te re st ra te on
savings. C om petition for these de­
posits and th e tren d of m oney rates
w ill be factors influencing the u ltim ate
decision.
B an k deposits, in m y opinion, should
rem ain su b stan tially th e sam e as this
year; b u t I anticipate th a t loan de­
m ands w ill increase in percentage
m ore th a n deposits. Locally, the
g ro w th for the oil in d u stry , aided by
w ater and in d u strial expansion, as­
sisted by increased consum er spend­
ing, are reasons for m y conclusion.
W hile business has accum ulated some
su rp lu s funds from depreciation and
retain ed earnings, th e use of these
funds for in v en to ry and expansion will
soon develop a need for additional
funds th ro u g h loans. The n et resu lt
of th is increased business and loan ac­
tiv ity will re su lt in a slight upw ard
tre n d in in te re st rates.

TILDEN
CUMMINGS
President
Continental Illinois
National Bank and
Trust Company
Chicago
Illinois

■ W e feel th e first q u a rte r of 1962
should be th e b est q u a rte r in our n a­
tio n ’s history. I t now appears th a t th e
lull in the business recovery move,
w hich has caused m uch concern in the
p ast tw o m onths, has ended. It is diffi­
cu lt to see w hat w ill p rev en t the be­
ginning of the New Y ear from settin g
all-time highs in production, incom e
and em ploym ent. S entim ent of both
the businessm an and, at long last, th e
consum er seem s to be g etting p ro g res­
sively m ore optim istic.
The leading economic indicators are
now show ing renew ed vigor and the
latest figures on in d u strial production,
personal incom e and retail sales show
sufficient im provem ent to establish alltim e highs. The reluctance of consum ­
ers to spend in line w ith incom e and
holdings of liquid assets caused con­
cern in th e last tw o qu arters. Now,
led by a w ave of optim ism engendered
by th e perform ance of th e autom obile
in d u stry , this key segm ent of spend­
ing activity is on th e rise.
As far as th e y ear 1962 as a w hole is
concerned, it also appears th a t suffi­
cient m om entum is being bu ilt up in
th e econom y to provide a strong u n ­
d erp inning for good business activity
th ro u g h o u t the year. The econom y’s
perform ance in th e first half should be
especially stro n g as in v en to ry build­
ing picks up, especially in steel and
related products against the possibil­
ity of a m idsum m er strike. Spending
by th e F ed eral G overnm ent w ill con­
tin u e to buoy th e econom y in the
m onths ahead as it has in th e recent
past. These factors, coupled w ith re ­
new ed consum er expenditures, m ake
for an encouraging outlook for the
period ahead.
A t th e p resen t tim e we, along w ith
m any o th er banks, are stu d y in g the
possible im pact of th e recen tly an ­
nounced changes in R egulation Q.
Over th e longer pull, th e h ig h er rates
and g reater flexibility p erm itted by
th e revised reg ulation w ill allow com­
m ercial banking to be a m uch m ore

>

X

J

27
vigorous com petitor for th e econom y’s
savings. Tim e deposit grow th, w hich
has alread y been v e ry rap id in recen t
years, should continue its sh arp u p ­
w ard tren d . On th e in v estm en t side,
of course, b an k s w ill have to look
carefully a t m eans b y w hich th e h ig h ­
er in te re st costs can be covered and
still m ain tain sound standards.
F u rth e r b a n k cred it g row th is also
anticipated for 1962. G row th of total
b an k cred it w as a t a v e ry rap id pace
in 1961 and has reach ed all-tim e highs.
T he com position of th is g ro w th in 1962
should sh ift from th e m ajor expansion
in in v estm en ts experienced in th e
p ast y e a r to a relativ ely g re a te r ex­
pansion of b a n k loans. As th e econ­
om y m oves forw ard, b o th b a n k de­
posits and loans should sh are in th e
general expansive forces of th e move.
A ny change in in te re st ra te s on
loans u n d e r th ese conditions should be
in an up w ard direction. To date, com ­
m ercial loans, especially in th e lead­
ing m oney centers, have not y et ex­
hibited th e g ro w th and ex erted th e
p ressu re usu ally req u ired to m ove in ­
te re st ra te s sh a rp ly higher. T hus at
least for th e first q u a rte r of 1962 th e
up w ard m ovem ent of such ra te s w ill
probably be quite m odest and any
tre n d developing w ill be only a g rad ­
ual, slow m ovem ent.

CARL R.
POHLAD
President
The Marquette
National Bank
Minneapolis
Minnesota

■ D uring th e p a st several w eeks
clients w ho have called upon us have
been so u n iv ersally optim istic th e m ­
selves concerning th e ir p rospects and
th e outlook for 1962 th a t w e have
found it difficult to avoid becom ing a
disciple of th e sam e philosophy. C er­
tain ly th e C hristm as shopping activ ity
w hich occurred in our area, if it m ay
be used as a criterion, lends some su p ­
p o rt to th is line of th o u g h t, w hen
coupled w ith th e encouraging signs
w hich w e have already observed in
several key industries.
The stro n g possibility at th is w rit­
ing th a t m ost b an k s w ill pay a h ig h er
ra te of in te re st on tim e deposits in
1962 will, in our opinion, ju s t as p ro b ­
ably affect th e cost of m oney to b o r­
row ers. The m arg in of profit for
banks is m uch too n a rro w to allow for
an appreciable increase in such a
m ajor item of expense as In te re s t P aid
w ith o u t at least som e a tte m p t to offset

th is added cost of doing business. We
are, of course, hopeful th a t if th is rise
of ra te s re su lts in a m arked increase
in tim e deposits, a ready m ark et for
th ese funds w ill be available w ith o u t
low ering th e spread w hich now exists
betw een incom e and in te re st expense.

MAX G.
BROOKS
President
The Central Bank
and Trust Company
Denver
Colorado

B W e plan to join w ith all m ajor D en­
v er b an k s in paying th e m axim um
savings in te re st perm issible u n d er the
new R egulation “Q.” I am quite sure
th a t th is w ill b rin g quite a volum e of
new savings into th e banks in th is
area, since th ey w ill now be paying
only % p er cent less th a n th e Savings
and Loans. O perationally, it w ill m ean
additional com putations since we w ill
be paying 3% p er cent in te re st on a
daily basis, w ith a % of 1 per cent
bonus each q u a rte r on the low balance
of th e account d u rin g th e p ast year.
T his w ill m ean tw o separate com puta­
tions on n early every account.
As stated above, th is new rate w ill
gen erate m ore deposits and w ill neces­
sitate a m ore aggressive loan policy.
A shortage of good loans could de­
velop.
In te re s t ra te s on loans w ill neces­
sarily be higher. Long term rates w ill
probably be raised m ore th a n short
te rm rates.

NEAL A.
SANDS
President
Valley Bank and
Trust Company
Des Moines
Iowa

■ W hen we look a t th e prospects for
1962, th e re are several th in g s w hich in ­
fluence our conclusions.
A succession of favorable business
re p o rts in recen t w eeks indicate a g en­
eral advance in economic activity
w hich has increased confidence in the
near-term business outlook. I t is a
w ell-know n fact th a t th e w hole stru c ­
tu re of economic activ ity in the
U nited S tates is changing, and th e gen­
eral level is slow ly expanding.
Iow a m akes its con trib u tio n to m a­

terial trends, and recen t em ploym ent
increases are to be found in th e trad es
and services and in governm ent serv ­
ice. As a state w e should em phasize
the developm ent of those activities
w hich fu rn ish these services, as Iowa
farm ers have become few er and Iowa
farm s have grow n larger. E m ploy­
m ent in ag ricu ltu re has declined stead­
ily since 1940 so ad ju stm en ts have to
be made. Good m anagem ent decisions
are necessary in th e y ear ahead for
even average retu rn s. Poor decisions
w ill m ean losses, so w e need to con­
sta n tly stu d y th e m arket.
T here is fairly w ide agreem ent th a t
the business outlook for th e first six
m onths is good. T he m ain factor
seem s to be consum er spending. In
th e p ast w hen em ploym ent expanded
and incom es w ere better, consum er
business increased and th is increased
th e dem and for credit. R etail sales are
higher; m a n u fa c tu rers’ new orders
continue up; and farm o u tp u t is only
slightly below th e b est y ear on record.
W e are all hoping, therefore, th a t 1962
w ill be as good as predictions now in ­
dicate.

E. W.
LYMAN
President
The United States
National Bank
of Omaha
Omaha
Nebraska

■ The Om aha area chalked up a “b an ­
n e r” y ear in 1961. C onstruction led
business grow th to new record highs
. . . th e phenom enal increase is evi­
dence th a t th e area continues its gain
in new busines sand in dustry. O ther
segm ents of th e econom y also p ro s­
pered, and significant increases w ere
posted by various o th er business in ­
dicators. B usiness stood solidly ahead
of a year ago as 1961 cam e to a close.
In agriculture, w e have enjoyed so
m any “record b u ste r” crop years since
the 1955-56 d ro u th th a t new highs
seem ed a norm al condition. T here
w ere some set-backs th is y ear in some
sections of our area, b u t tak en as a
whole, it w as a good y ear for agricul­
ture. The ran ch co u n try w as one of the
b rig h t spots . . . range conditions w ere
good and feeder cattle prices higher.
F o r farm er-feeders, th ere w ere some
disappointm ents . . . m argins w ere not
alw ays favorable. This is also clouding
profit prospects for th e com ing year.
O U TLO O K . . .

(T u rn to page 38, please)
Nort hwest ern Banker, January, 1962.


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Federal Reserve Bank of St. Louis

28

R. M . CO O K

.1

C. M . F L O R A

w.

a

. M cD o

n n e l l

G. H . P E R K I N S

A ppoin Émvn 1s

AM M. FLEM IN G , new p resid en t
of th e A m erican B an k ers Associ­
ation, h as m ade several ap p o in t­
m ents since his election in October.
T he follow ing lists are of m em bers of
th e executive council and th e adm inis­
tra tiv e com m ittee, ch airm en of th e
o ther com m ittees and com m ittee m em ­
bers located in th e N o r t h w e s t e r n
B a n k e r area in u p p er m idw est states:

S

E x e cu tiv e Council

A nderson B orthw ick, pres., F irs t
N ational T ru s t and Savings, San
Diego; R ansom M. Cook, pres., W ells
F argo A m erican T ru st, San F rancisco;
F re d A. Dowd, pres., F irs t N ational of
Cincinnati; C arl M. Flora, v.p., F irs t
W isconsin N ational, M ilwaukee; Gay­
lord A. F reem an, Jr.*, pres., The F irs t
N ational of Chicago; T hom as J.
Groom*, pres., B ank of Commerce,
W ashington, D. C.; Milo B. H opkins,
exec, v.p., M an u factu rers H anover
T rust, New York; W illiam A. McDon­
nell, chm. of bd., F irs t N ational in St.
Louis; A llen Morgan*, pres., F irs t N a­
tional of M emphis; G ilbert H. P erk in s,
v. chm . of bd., Chem ical B ank New
Y ork T ru st, N ew York; D ietrich
Schm itz, chm. of bd., W ashington
M utual Savings, Seattle, and A. Lee
W iggins*, chm . of bd., The B ank of
H artsville, S. C.
(* A lso m em b ers o f th e A d m in istr a tiv e C om m ittee.)

Savings Bond C om m ittee

Chairm an: R eno Odlin, pres., P ug et
Sound N ational, Tacoma, W ash., and
m em ber, Del W. Palm er, exec, v.p.,
F argo N ational of Fargo, N. D.
State Chairm en: Colorado — W. M.
W atrous, exec, v.p., F a rm e rs S tate of
B rush; Iow a—H e rb e rt L. Ollenburg,
pres., H ancock C ounty N ational, G ar­

A. B . K N O X

G. M U R R A Y

Nort
ern Banker, January,
Digitized
forhwest
FRASER

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

1962

ner; M innesota — A. H. H aakenson,
chm. of bd. and pres., A ustin State of
A ustin; M ontana—R obert M. W aters,
pres., S ecurity T ru st and Savings, Bilings; N ebraska—H. D. K osm an, pres.,
Scottsbluff N ational of Scottsbluff;
N orth D akota—Del W. Palm er, exec,
v.p., F arg o N ational of Fargo; South
D akota—W alter H. Frei, chm. of bd.,
Com m ercial State of W agner, and
W yom ing—Max F. Stevens, v.p. and
in v estm en t officer, W yom ing N ational,
Casper.
A dvisory and In tern ational

Chairm an: H e rb e rt Y. Prochnow ,
exec, v.p., The F irs t N ational of Chi­
cago.
A gricultu ral

C hairm an: Jo h n H. Crocker, chm. of
bd., C itizens N ational of D ecatur, 111.
T erm expires 1964: Theodore D.
Brow n, exec, v.p., The S ecurity State
of Sterling, Colo., and D. M. Crouse,
pres., Security State of Basin, Wyo.
A dvisory Council: Dr. O. B. Jesness,
head em eritus, dept, of ag. econ., U ni­
v e rsity of M innesota, St. Paul.
B ank E x ecu tiv e, Staff D evelopm ent

C hairm an: C. E d w ard B errym an,
v.p. and dir. of personnel, M arine
T ru st of W estern N ew York, Buffalo;
and m em bers: P at DuBois, exec, v.p.,
F irs t S tate of Sauk Centre, Minn., and
H e n ry T. R utledge, exec, v.p., N o rth ­
w estern N ational of M inneapolis.
B an k M anagem ent

C hairm an: G. E d w ard Cooper, sr.
v.p., P hiladelphia N ational of P h ila­
delphia; and m em ber: R. A. Bezoier,
pres., F irs t N ational of R ochester,
Minn.
B an k in g E ducation

C hairm an: E v e re tt I). Reese, chm.

R. M . W A T E R S

A. T. D O N H O W E

T. D. B R O W N

R. A . B E Z O I E R

of bd., City N ational B ank and T rust,
Columbus, Ohio.
C ountry B an k O perations

C hairm an: T hom as G. W ilson, pres.,
F irs t State of Conway, Ark.; and m em ­
bers: T hom as O. Cooper, pres., Jeffer­
son State of Jefferson, Iowa; A. Boyd
Knox, pres., McCook County N ational
of Salem, S. D., and Jam es B. McKeever, exec, v.p., F irs t N ational of
Holly, Colo.
Credit P o licy

C hairm an: J. H ow ard Laeri, exec,
v.p., T he F irs t N ational City B ank of
N ew York; and m em bers: Sidney L.
Brock, Jr., sr. v.p., The F irs t N ational
of D enver; and G ordon M urray, pres.,
F irs t N ational of M inneapolis.
Credit U n io n s

C hairm an: A rchie K. Davis, chm. of
bd., W achovia B ank and T ru st, W in ­
ston-Salem, N. C.; and m em ber: R obert
M. W aters, pres., S ecurity T ru st and
Savings, Billings, Mont.
E conom ic G rowth W ithou t Inflation

Chairm an: C asim ir A. Sienkiewicz,
pres., C entral-Penn N ational of P h ila­
delphia.
E conom ic P olicy

Chairm an: Jesse W. Tapp, chm. of
bd., B ank of A m erica N.T. & S.A., Los
Angeles, Calif.
F ederal D ep osit In surance

Chairm an: D. E m m ert B rum baugh,
pres., F irs t N ational of Claysburg, Pa.;
and m em ber: A. T. Donhowe, v.p.,
C entral N ational B ank & T rust, Des
Moines, Iowa.
F ed eral F isca l Procedures

Chairm an: Gerald O. Nelson, v.p.,
Iow a-D es M o i n e s N a t i o n a l , De s
Moines, Iowa.
F ed eral L eg isla tiv e

C hairm an: Jack T. Conn, pres., Okla­
hom a State Bank, Ada, Okla.; and

G. O. N E L S O N

F. P. P O W E R S

29

H. W . SCH ALLER

C. B. M A T E E R

T . J. W E L C H

C. N E U M A N N

m em bers: F ra n k P. Pow ers, pres.,
K anabec State B ank, Mora, Minn.; and
H a rry W. Schaller, pres., Citizens
F irs t N ational of Storm Lake, Iowa.
Subcom m ittee on Ag. Credit:
C hairm an: H a rry W. Schaller, pres.,
Citizens F irs t N ational of Storm Lake,
Iowa; and m em bers: Otto Kotouc, Jr.,
pres., H om e State of H um boldt, Nebr.;
and C urtis B. M ateer, exec, v.p., P ierre
N ational of P ierre, S. D.
Subcom m ittee on M ortgage F in a n c ­
ing and U rban Housing:
Chairm an: R o b ert H. Bolton, pres.,
R apides B ank & T ru st in A lexandria,
La.
Subcom m ittee on Section 5219 U. S.
R evised Statutes:
C hairm an: L ew ellyn A. Jenn in g s,
sr. v.p., R epublic N ational of Dallas,
Tex.; and m em ber: E rlin g Haugo,
chm. of bd. and pres., Sioux V alley
Bank, Sioux Falls, S. D.

B ank & T ru st of Chicago; and m em ­
ber: Ju lia n B. Baird, chm. of bd., The
F irs t N ational of St. Paul, Minn.

A dvisory F ederal L egislation

C hairm an: Jo h n F. Geis, sr. v.p.,
F irs t S ecurity N ational of B eaum ont,
Tex.
Regional Vice P residents: Chase
N eum ann, pres., F a rm e rs and M er­
ch an ts N ational of Oakland, Neb.; and
A. G. Sirek, exec, v.p., State B ank of
New Prague, Minn.
S tate Vice Presidents: Color-ado—L.
E. F itzgerald, pres., F a rm e rs State of
Yuma; Iow a—E. F. Buckley, pres.,
C entral N ational B ank & T ru st, Des
Moines; M i n n e s o t a — H e r m a n G.
H am re, pres., State B ank of W ood
Lake; M ontana—J. D. Street, pres., Se­
c u rity B ank & T rust, Bozeman; Ne­
b ra sk a —N. T. Tiem ann, pres., Com­
m ercial S tate Bank, W ausa; N orth
D akota—T. A. Solheim, pres., A m eri­
can S tate of Minot; South D akota—A.
Boyd Knox, pres., McCook County N a­
tional of Salem; and W yom ing—J. W.

Chairm an: Jack T. Conn, pres., Okla­
hom a State B ank, Ada, Okla.; and state
m e m b e r s : C o l o r a d o — E l w o o d M.
Brooks, chm. of bd., C entral B ank and
T rust, D enver; Iow a—Calvin W. Aurand, pres., Iowa-Des M oines N ational,
Des Moines; M innesota—W allace L.
Boss, v.p., F irs t N ational of St. Paul;
M ontana—R obert M. W aters, pres.,
S ecurity T ru s t & Savings, Billings;
N ebrask a—H. D. K osm an, pres., Scottsbluff N ational of ScottsblufT; N orth
D akota—W illiam Stern, pres., D akota
N ational of Fargo; South D akota—
Tom S. H arkison, pres., N ational B ank
of South D akota, Sioux Falls; and
W yom ing—R alph E. B arton, pres.,
W yom ing N ational of Casper.
G overnm ent B orrow in g

C hairm an: D avid M. K ennedy, chm.
of bd., C ontinental Illinois N ational

j. D. ST R E E T


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Federal Reserve Bank of St. Louis

N. T. T IE M A N N

In sta llm en t Credit

C hairm an: Jo h n O. E lm er, sr. v.p.,
W ells F argo B ank A m erican T rust,
San Francisco; and m em bers: G.
Oliver Nordby, v.p., N orthw est Secur­
ity N ational of Sioux Falls, S. D., and
Ted J. W elch, pres., Peoples B ank &
T ru st of Cedar Rapids, Iowa.
In surance and P rotective

C hairm an: H en ry D. Ormsby, v.p.,
F irs t N ational Lincoln Bank, L ouis­
ville, Ky.
M ortgage F in ance

C hairm an: Cowles A ndrus, pres.,
New Je rse y B ank and T rust, Passaic,
N. J.; and Vice Chairm an: H a rry P.
B ergm ann, v.p., The Riggs N ational of
W ashington, D. C.
Organization

J. W . P E A R S O N

J. H . P U L L M A N

A. G. S IR E K

Pearson,
Lovell.

pres.,

F irs t

N ational

of

P ublic R elation s

C hairm an: E d w ard T. H etzler, v.p.,
B ankers T ru st Company, New Y ork
City; and m em ber: J. H. P ullm an,
chm. of bd., F rem o n t County Savings,
Sidney, Iowa.
R esearch

C hairm an: Roy L. R eierson, sr. v.p.,
B ankers T ru st Company, New Y ork
City.
Sm all B u sin ess Credit

Chairm an: A rth u r F. Maxwell, pres.,
F irs t N ational of Biddeford, Maine;
and m em ber: Jo h n A. M oorhead, pres.,
N o rth w estern N ational of M inneapolis.
State L eg isla tiv e

Chairm an: Elw ood F. K irkm an,
pres., The B oardw alk N ational, A t­
lantic City, N. J.; and m em bers: E u ­
gene H. Adams, pres., F irs t N ational of
Denver; Jo h n B. Keeline, pres., C entral
T ru st & Savings, Cherokee, Iowa; and
Otto Kotuc, Jr., pres., H om e S tate
Bank, H um boldt, Neb.
A dvisory, State L egislation

C hairm an: Elw ood F. K irkm an,
pres., The B oardw alk N ational, A t­
lantic City, N. J.; and state m em bers:
Colorado—H. B. M endenhall, pres.,
Rocky F o rd N ational, R ocky F ord;
Iow a—B ruce Tow nsend, pres., City
N ational of Clinton; M innesota—K. O.
Sattre, pres., Blue E a rth State of B lue
E arth ; M ontana—D. J. Dundas, pres,
and tr. off., G reat F alls N ational at
G reat Falls; N ebraska—Iv an Hedge,
pres., F illey Bank, Filley; N orth Da­
kota—R ichard L. Healy, v.p., Lincoln
State Bank, H ankinson; South D akota
—Rex T erry, cash., F o rt P ierre N a­
tional, F o rt Pierre; and W yom ing—A.
L. Kendig, exec, v.p., State B ank of
W heatland.—E nd.

E. H. A D A M S

J. B. K E E L I N E

Nort hwest ern Banker, January, 1962

30

B u sin ess .
T rea su ry u n d Ted»
In dien te B ossihle Room
B y RAYMOND TRIGGER
Investm ent Analyst
New Y o r k City
N V E S T M E N T m a r k e t s are re ­
sponding to th e m ovem ent of th e
econom y in a definite new d irec­
tion afte r a y e a r or so of m ark in g
tim e.
The d e p a rtu re of th e n a tio n ’s b u si­
ness from u n easy equilib riu m is to ­
w ard a h ig h er level of in d u strial p ro ­
duction, even boom. A utom obile o u t­
p u t seem s headed tow ard one of th e
in d u stry ’s best p o stw ar years. The
F ed eral R eserve index of in d u strial
production m oved u p w ard one and
one-half points for October to 113, the
level of A ugust. Steel orders are ris ­
ing, possibly as an in v en to ry hedge
ag ain st a strik e w hen th e p resen t
w age co n tract expires on Ju n e 30 of
th is year. U nem ploym ent dropped in
O ctober below 4,000,000 for th e first
tim e in a year.
The response of eq u ity and debt in ­
v estm en t v alues to th e in d u strial u p ­
tu rn is of orthodox kind. The bond
m a rk e t is h ard en in g —yields are m ov­
ing up. B ullishness continues to p re ­
vail in th e stock m arket, b u t b u y ers
are becom ing m ore selective. E ven
those an aly sts w ho are sanguine about
an even h ig h er level for prim e and
grow th equities are aw are of th e fact
th a t the financial w orld in general be­
lieves stock v alues to be historically
high and, th erefore, v u ln erab le to
profit tak in g by ow ners of stronglyheld stocks and to stop-out selling
from speculators w hose sh ares are in
w eak hands.
Two developm ents affecting the
tim e deposit in te re st savings of com ­
m ercial and savings b anks underscore
th e re tu rn of th e long g o vernm ent
m a rk e t to a 4 p e r cent basis and c arry
th e suggestion th a t th e new hig h er
floor on th e basic in te re st s tru c tu re is
here to stay.
A u th o rity w as given by th e ban k in g
au th o ritie s of New York S tate for sav­
ings bank s w ith in th e s ta te ’s ju risd ic ­
tion to pay up to 3% p er cent in te re st
on reg u la r savings accounts and to
p ay a bonus ra te of up to 4 p er cent
on accounts of long standing. A boost
in th is kind of ra te ceiling does not
happen ev ery day.

I

Nor t hwe s t er n Banker, January, 7962


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

P robably the New Y ork move legal­
izing a 4 p er cent ceiling on th rift ac­
counts in the m u tu al savings banks
prodded th e F ed eral R eserve Board to
delay no longer in effectuating a longadvocated move to ren d er com m ercial
banks m ore com petitive in the tim e
deposit p a rt of th e business. The com ­
m ercial lending in stitu tio n s w ere au ­
thorized to increase th e ir top in terest
pay m en t rate on tim e deposits to 3%
p er cent.
W hile th e hig h er ra te for th e com ­
m ercial b anks w ill enable them to
com pete m ore effectively against th e
m u tu al savings banks and savings and
loan associations, it is likely th a t th e
com pelling reason sp u rrin g the F ed ­
eral R eserve au th o rities to authorize
th e change at th is tim e w as th e com­
petitiv e situation th a t exists betw een
com m ercial banks here and abroad in
a t t r a c t i n g sh o rt-te rm i n v e s t m e n t
funds.
T his m eans th a t if the th re a t of u n ­
due gold outflow from th e U nited
States should recur, th e com m ercial
ban k in g in stitu tio n s of New Y ork and
the n a tio n ’s o ther m oney c e n t e r s
w ould be b e tte r equipped w ith in te r­
est yield inducem ents to persuade
“h o t” sho rt-term m oney balances to
stay in th e U nited States.
T here can be no gainsaying th a t
both m oves for h ig h er in terest p ay­
m ents are lasting benchm arks in the
n a tio n ’s p o stw ar ad ju stm en t from an
a rb itra ry and largely artificial in terest
stru c tu re of a w artim e econom y of
sm aller scope.
T here does not seem to be any basis,
how ever, for th e arg u m en t th a t the
moves, in them selves, m ake for a
h ig h er in te rest rate. The point would
ra th e r seem to be th a t th e action of
the F ed eral R eserve B oard and the
ban k in g au th o rities of New Y ork State
is only a confirm ation of a fact long
accom plished and a belated sanction
for in stitu tio n s w ith in th e ir ju risd ic­
tion to share in benefits from w hich
th ey had been b arred by th e holdover
lim its of an obsolete p a tte rn of rates.
It is even conceivable th a t the h igh­

t
er rates on th e th rift and tim e deposits
could w ork for a lower, ra th e r th a n a
h igher in te re st stru ctu re. T his could
come about if th e hig h er b an k rates
should a ttra c t into th e n atio n ’s sav­
ings pool m oney th a t is n o t being used
for consum ption expenditures. P ro b ­
ably th is w ill not happen. It is m ore
likely th a t th e new rates w ill deflect
into th e b an k s’ savings now being
channeled elsew here and th a t th e
over-all in te re st stru c tu re w ill be u n ­
affected. A nyw ay, th e fluctuating de­
m and for in v estm en t m oney is gen er­
ally m ore influential in instig atin g
changes in th e in te re st stru c tu re th an
fluctuations in th e supply of savings.
W ith th e y e a r’s re c u rrin g questions
about th e likely new course of th e
econom y silenced by th e c u rre n t in ­
du strial u p tu rn tow ard new peak lev­
els, th e big rem ain in g questions are
threefold, nam ely, th e likely course of
com m on stock prices, th e continuing
adequacy of th e n a tio n ’s gold m one­
ta ry base and, finally, th e e x ten t to
w hich m o n etary policy adm inistered
by th e F ed eral R eserve System can be
expected to influence th e shape of
things to come.
A disquieting cloud over th e econ­
om y is the lasting deficit in th e in te r­
national paym ents of th e U nited States
and th e slow ness w ith w hich W ash­
ington and th e com m unity of business
and labor are com ing to grips w ith
th e problem .
It is w ith in th is touchy area — a
th reaten ed new dom estic boom on one
hand and a th reaten ed renew ed out­
flow of gold on th e o th er—th a t F ed ­
eral R eserve credit policy w ill be
called upon to function in forthcom ing
m onths. The task w ill not be easy.
The m oney supply m u st be expanded
in keeping w ith th e expanding econ­
omy.
The conviction is spreading in finan­
cial circles th a t a shift in central bank
policy aw ay from th e credit ease of
recent m onths is now going on and
w ill continue, gradually, over th e w in ­
ter. The com m ercial banks have sub­
stan tial holdings of short-term govern­
m ent securities such as T reasu ry bills.
If the dem and for com m ercial loans
rises, it is likely th a t th e deposit in ­
stitu tio n s w ill likely sell out th e ir bill
holdings to raise loan funds. W ill th e
F ed eral R eserve b u y such offerings
w ith a view to holding bill discounts
from going above p resen t levels? P ro b ­
ably not. A lready th ere is serious ta lk
about th e probability of a h igher dis­
count rate th a n th e 3 per cent charge
th a t has been in effect for m ore th a n
a year. M arket m en w ould n ot be
su rp rised if T reasu ry bills w ould be
yielding 3 p er cent before th e w in ter
is over. —End.

A

-1

À

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A

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31

At First National of Chicago Conference

S p e a k e r s O p t im is t ic A h a u t Ì 9 H 2
ORE th a n 2,000 g uests attended
th e an n u al C onference for Cor­
resp o n d en t B anks sponsored
la st m o n th by The F ir s t N ational
B ank of Chicago. The 1,200 b a n k ers
attended regional sem in ar sessions
d u rin g th e one and one-half day m eet­
ing to h e a r three-m an panels of speak­
ers discuss th e g eneral subjects of in ­
v estm en ts, h a n k operations and o u t­
looks for th e com ing m onths.
The balance of th e re g istra tio n w as
m ade up of approxim ately 900 w ives,
and th e y w ere feted at a d in n e r on
M onday evening d u rin g th e C onfer­
ence, w ith a style show staged a fte r­
w ard by Carson P irie Scott & Com­
pany, as w ell as being g uests at a
luncheon th e follow ing day.
In addition to th e th re e panels of
speakers, th e vice p resid en ts in charge
of T he F irs t N atio n al’s 11 lending di­
visions each gave a five-m inute capsule
re p o rt on th e outlook for b u siness in
th e areas served b y th e ir respective
divisions. In brief, th e ir re p o rts show
these tren d s:
D ivision A —H orace O. W etm ore:
1962 cattle prices a little low er th a n in
1961; little significant change in feeder
cattle prices; hog prices som ew hat
low er th a n 1961; in feed grains, corn
and soybean prices probably w ill w ork
up to th e ir su p p o rt levels.
D ivision B — T hom as J. B utler:
T hings are looking up for D ivision B
custom ers (textile, apparel and m e r­
chandising fields) and b u siness w ill be
good, w ith m oderate and consistent
im pro v em en t likely. Our custom ers
are th in k in g in term s of 3 to 5 p er cent
increases in volum e for th e spring.
D ivision C—C larence R. E ichenberger: (C onsum er d urable goods and
m etals). W ith 3-year steelw o rk ers
w age contract ex p irin g Ju n e 30, steel
inven to ries are again a t low point and
w ill s ta rt to build up in h an d s of fab­
ricato rs and w arehouses in th e first
half of 1962. S teelw o rk ers’ McDonald
probably w ill not settle for less th a n
w h a t auto w o rk ers got in th e ir recen t
3-year co n tract — approxim ately 40
cents p er h o u r over th e 3-year period.
T his w ill continue th e profit decline in
steel in d u stry since price increases
have n o t offset labor and m aterial
cost increases. Steel scrap prices have
dropped sharply. T he auto in d u stry
w ill have a good y e a r in 1962.
D ivision D—R ay H. M atson: (F i­
nance com panies). In sta lm e n t scales
finance in d u stry in financing autom o­
biles had its least profitable six

M

m onths in 25 years d u rin g first half
of 1961; caused by low auto sales, in ­
creasing com petition and operating
costs, and w o rst credit experience in
in d u stry statistics w ith charge-offs of
2.26 p er cent of paper liquidated. Small
loan in d u stry had profits in excess of
11 p er cent to average n et w o rth and
should do as w ell in 1962. The Com­
m ercial financing in d u stry had profits
h ig h er th a n 1960 and should have a
satisfactory 1962.
D ivision E —Jam es U. Snydacker:
(Food and d rin k ). W ell-m anaged ag­
gressive food processing com panies
have done w ell and should continue to
do so in com ing year.
D ivision F —C harles F. N ew hall:
(C orrespondent b an k s). 1961 b ank
earn in g s w ill be m oderately below
1960, b u t the 1962 outlook is for an im ­
proved showing. T here w ill probably

(In v estm en t bankers, public utilities
and tra n sp o rta tio n ). In v estm en t b a n k ­
ers did w ell in 1961 w ith new securi­
ties issues up 34 per cent over I960,
and shares trad ed up b e tte r th a n 30
per cent. T heir n et w o rth increase is
substantial, and the outlook is as fav­
orable as 1961. Public utilities are
doing w ell and should continue to do
so. T ran sp o rtatio n in all fields su f­
fered acutely again in 1961. L ate re ­
ports from 1961 w ere encouraging,
w ith sales picking up.
D ivision I —Alvin C. Johnson: Gaso­
line price w ars co n tributed su b stan ­
tially in 1961 to th e fact th a t 17 do­
m estic oil com panies rep o rted earnings
for th e first nine m onths u n d er th e
sam e m onths of 1960. O ver-production
w as th e p rincipal cause of th e price
w ars. A 2 to 3 per cent increase in
dem and is foreseen for 1962.

HOST V ic von M eding ( c e n te r), a.v.p., 1st N a tio n a l B a n k of C hicago, goes o v er pro­
g ra m n o tes w ith tw o c o n fere n ce sp e a k ers. T h ey a re J. F. K en nedy ( l e f t ) , pres., 1 irst
N a tio n a l, H a m p to n , Io w a , a n d W alter M. W illy, p re s., S e c u rity B a n k , M ad iso n , S. D.

be an increase in dem and for b ank
loans, w ith an up w ard tren d of in ­
te re st rates.
D ivision G—B entley G. McCloud:
(H om e construction,
ru b b er and
shoes). A n increase of 6 per cent to
1,375,000 u n its seem s a reasonable
guess for hom e building in 1962, w ith
an am ple supply of m ortgage funds
available. Dom estic new ru b b er con­
su m p tio n w as off 10 p er cent in th e
first 8 m onths of 1961. The 1962 o ut­
look is for g re a te tr sales w ith m ore
autos m anufactured. Shoe sales w ere
off again in 1961 and 1962 outlook
show s no im provem ent in sight.
D ivision H —R obert B. Jo h nston:

D ivision J—Jam es A. B ourke: N ext
to agriculture, construction in d u stry is
th e largest em ployer in our country,
em ploying five per cent of th e w ork
force, w ith expenditures of about $57.8
billions for 1961 or 11.1 p er cent of
GNP. New records w ere set in 1961,
and en thusiasm pervades 1962 fore­
casts. B uilding m aterials prices have
increased. L um ber and wood prod­
ucts profits have suffered; th e outlook
for fu rn itu re in d u stry is not b rig h t;
plum bing and h eatin g firm s w ill bene­
fit from increased building inl962. All
C O N FER EN C E . . .

(T u rn to page 38, please)
Nort hwest ern Banker, January, 1962


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

32
f

4 0 0 A tte n d F e e d e r - H a n k e r M e e tin g
Alden Bagnall Honored By Live Stock National
N EW atten d an ce record w as set
w h en ap p ro x im ately 400 p e r­
sons atten d ed th e an n u al I n te r­
n ational L ivestock Show and p a rty
sponsored in Chicago recen tly by th e
Live Stock N ational B ank of Chicago.
B ankers and cattle feeders a tten d in g
th e m eeting w ere guests of th e b an k at
a special business p ro g ram in the
afternoon, w hile th e w ives w ere guests
a t a reception hosted by th e b an k offi­
c e rs’ wives.
The aftern o o n pro g ram w as a fivem an panel p resen tatio n th a t has been
given in a n u m b er of com m unities in
Illinois, Iow a and W isconsin and is
available for farm er and b an k er
groups. The panel w as introduced by

A

L. L. H olland, vice p resid en t of the
Live Stock N ational Bank. M oderator
w as L a rry Caine, an official in th e
office of public relatio n s for the Chi­
cago U nion Stock Yards.

Mo., presid en t of the N ational L ive­
stock F eeders A ssociation. The title of
his address was, “C ircum stances A f­
fecting th e F u tu re of the Livestock
Feeding In d u stry .”

P an elists

A ld en B agnall H onored

O ther panel m em bers w ere M illard
J. Cook, executive vice p resident of
th e U nion Stockyard & T ran sit Co.;
N orm an E. Ross of W. O. Jen n in g s &
Co.; R obert H utcheson of H uffm an &
H utcheson, Inc., and Pete Y arling of
Chicago P roducers Co. T hey discussed
c u rre n t m ark et conditions and the
m a rk e t outlook.
P rin cip al speaker at th e banquet
w as O rrin C. S w ackham er of Tarkio,

The h ig h lig h t of th e b an q u et w as
th e stirrin g trib u te paid by David H.
R eim ers, p resid en t of th e Live Stock
N ational Bank, to A lden S. Bagnall on
th e occasion of th e la tte r’s 45 y ears of
service w ith th e Live Stock N ational.
Mr. R eim ers recalled th a t am ong the
m any o u tstan d in g co n tributions m ade
to Live Stock N ational’s progress by
Mr. Bagnall, one of the m ost im p o rtan t
w as his organization of the first In te r­
n ational L ivestock Show p a rty for
b an k er and feeder custom ers of th e
bank. A fter a fitting review of Mr.
B agnall’s y ears w ith th e bank, Mr.
R eim ers introduced him to th e assem ­
bly and he w as given a standing
ovation.
Gain in F ed Cattle

L E F T — D avid H. R eim ers ( l e f t ) , p res., e x te n d s b e st w ishes to A lden S. B agnall, sr. v.p.,
on l a t t e r ’s 45 y e a rs o f c o n tin u o u s se rv ic e on th e staff. R IG H T — O. C. Sw ackham er of
T a rk io , M o., P re s., N a tio n a l L iv e sto c k F e e d e rs A s so c ia tio n , w ho w as b a n q u e t sp e a k er.

A B O V E — Joseph E. L isek, v.p., a n d R obert E. H am ilton, a.v.p., b o th w ith L iv e S to c k
N a tio n a l; Norm an E. Ross o f W. O. J e n n in g s & Co.; R obert H utcheson o f H u ffm an &
H u tc h e so n , In c .; L ew is L. H olland, v.p., L iv e S to c k N a tio n a l, a n d M illard J. Cook, exec,
v.p., U n io n S to c k y a rd & T ra n s it Co., a ll of C hicago. M r. H o lla n d in tro d u c e d th e p a n e l
on w h ic h th e s e m en a p p e a re d . M r. L is e k a n d M r. H a m ilto n also h e lp e d p la n m ee tin g .
Nor t hwe s t er n Banker, January, 7962


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

Mr. S w ackham er said th e U nited
States is th e fifth largest m eat eating
nation in th e w orld, w ith consum ption
p er capita leveling out in th is co u n try
the p ast few years. He said th ere
should be about 98.1 m illion head of
cattle in 1962 and a 500,000 head in ­
crease p er year w ould not increase the
p er capita consum ption because of the
population increase in th e nation. He
estim ates th a t th e th re e per cent gain
in cattle being fed each year th a t has
prevailed since 1957 w ould continue
for an o th er four years.
He said th e in d u stry w ill have to
m ake a goal line stand each year to
keep federal governm ent out of live­
stock control. He referred to th e d an ­
ger to feeders in th e use of certain
chem icals and supplem ents to live­
stock, m entioning w h at happened to
cran b erry grow ers in 1959 w hen th eir
crops w ere v irtu a lly destroyed by a
governm ent opinion th a t th ey w ere
contam inated.
Mr. S w ackham er concluded w ith
price estim ates for p u rch asin g and
feeding of calves, followed by several
questions from th e floor.
A fter th e ban q u et session, th e as­
sem bled b an k ers and livestock m en
and th e ir w ives atten d ed th e In te rn a ­
tional L ivestock Show as guests of
The Live Stock N ational B ank.— End.

>

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Federal Reserve Bank of St. Louis

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O N E A C C O U N T C O V E R S A L L C A L IF O R N IA

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T R U S T

A N D

S A V I N G S

A S S O C I A T I O N

Nort hwest ern Banker, J an uar y, 1962

34

Heads Lake Shore National
Joseph R. F rey, presid en t of L ake
Shore N ational Bank, Chicago, since
1933, and chairm an of the board since
1951, has announced the election of A.
T hom as Etcheson, executive vice p res­
ident, as president. Mr. F re y rem ains
chairm an of the board and chief ex­
ecutive officer.
Mr. Etcheson, w ho succeeds Mr.
F re y as president, w as executive vice
p resid en t of the Illinois B ankers As­
sociation until he joined the b a n k ’s
staff in A ugust of 1960 as executive
vice president. He had been elected a
director of the bank in J a n u a ry of
1960.

American National Prom otions
L aw rence F. Stern, chairm an of th e
board, A m erican N ational B ank and
T ru st Company, Chicago, has an ­
nounced the action of the board ap­
pointing tw o vice presid en ts and nine
o th er officers.

A s G e o rg e L a M onte & S o n e n te rs a n o th e r
d e c a d e , w e lo o k b a c k o n t h e r e v o l u t i o n a r y
c h a n g e s o f t h e l a s t f e w y e a r s t h a t a r o s e w it h
th e a d v e n t of th e M I C R

D. F. G L A S S

p ro gram .

W h i l e t h e r e still w ill b e m i n o r a n d l o c a l i z e d
p ro b le m s , th e d ifficu ltie s of m a k in g s a f e t y
p a p e r s u i t a b l e f o r m a g n e t i c in k e n c o d i n g a r e
k n o w n a n d to a la r g e e x t e n t a t h in g o f t h e
p a s t.
W e a r e g r a t e f u l to t h o s e in t h e b a n k s t a t i o n ­
e r y field a n d to t h e m a c h i n e m a n u f a c t u r e r s
f o r t h e i r c l o s e c o o p e r a t i o n d u r i n g t h i s p e r io d .
L o o k in g

to t h e f u t u r e w e s a y a g a in —f o r

checks

th at are

sp e c ify

L a M onte S a fe ty

both

safe

and

R. C. H A N S E N

Prom oted to vice presid en t w ere
D ennis F. Glass, tru s t in v estm en t
division, and R obert C. H ansen, tru s t
operations.
Charles V. Cruz, in tern atio n al b an k ­
ing departm ent; R ichard I. R oberts,
tru s t in vestm ent division, and R obert
J. Huffman, credit departm ent, w ere
appointed assistan t vice presidents,
w hile Stefan S. A nderson and E ric
H. Null, com m ercial loans, w ere made
a ssistan t cashiers.
Also prom oted to assistan t cashier
w ere Jam es R. Sincox, cash ier’s divi­
sion and D ante A. Greco, real estate
departm ent. In addition, A llen J.
M arrinson w as m ade an assistan t
tru s t officer, and E rn e st P. Wolff w as
nam ed assista n t m anager, in te rn a ­
tional b anking departm ent.

so rta b le ,

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GEORGE

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Nort hwest ern Banker, January, 1962

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

•

NUTLEY

10,

NEW

JERSEY

The recent au th o rization by direc­
tors of City N ational B ank and T ru st
Company, K ansas City, of th e tra n s ­
fer of $2% m illion from undivided
profits to su rplus is the largest single
such tra n sfe r in the h isto ry of City
N ational. Com bined w ith a half m il­
lion dollar tra n sfe r earlier in 1961,
the Decem ber 6th tra n sfe r brin g s the
b a n k ’s su rp lu s to a position equal to
its capital, $10 m illion.

35

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111 W EST M O N RO E S T R E E T —CHICAGO 90

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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, January, 1962

36

l'ield il

T
arehousingVital

m a k e r’s prem ises.
“Secured distribution, a registered
L aw rence plan, has m ade g reat in ­
roads in field w arehousing operations,”
Mr. Johnson said. “In fact, it has
of th e two-clay conference of the In ­ opened th e door to a new m erchandis­
d u stria l D istributors A ssociation at
ing technique th a t now enables a dis­
th e L ake Tow er Motel, Mr. Johnson trib u to r, sh o rt on capital funds or
called a tten tio n to th e expanding ac­
faced w ith to d ay ’s increased costs of
tiv ities in the field of “secured dis­ doing business, to be provided by his
trib u tio n .” T his is a L aw rence System
m an u factu rer w i t h m e r c h a n d i s e
plan th a t w as created to provide a
placed in bonded storage on his own
m eans for m an u factu rers to keep th e ir
prem ises.
goods m oving into trad e channels at
“This m erchandise is released to th e
th e point-of-sale level elim inating the
d istrib u to r as needed and paid for,
need of w arehousing goods on the
th u s enabling him to use his sh o rt
funds for o ther v ital phases of his
business operations. Likew ise, th e
m an u factu rer is protected from any
credit risk and also has field w are­
house receipts th a t can be used as col­
lateral for a ban k loan if needed.”
A fter detailing th e fu n d am en tals of
field w arehousing, Mr. Joh n so n ex­
pressed the conviction, held also by
his associates in th e L aw rence organi­
zation, th a t jo in t p articip atio n of in ­
v en to ry loans by sm all tow n and large
city banks m ay w ell be th e an sw er to
th e financing squeeze facing sm all
business today.
“We have,” he said, “m any cases
w here such syndicated loans, in addi­
tion to keeping th e business in th e
hom e area and p u ttin g th e b an k and
the borrow er into w arehouse receipts
for th e first tim e, have actually p ro ­
vided th e m eans for th e su rvival of
th e business.
Mr. Joh n so n pointed out th a t w hile
m ore th a n 2,000 U. S. banks, re p re se n t­
ing practically all types and sizes,
have held L aw rence w arehouse re ­
ceipts in th e past, some 600 b an king
in stitu tio n s are now holding L aw rence
w arehouse p aper in th e ir credit p o rt­
folios for loans of v ary in g sizes. V ir­
tu ally every one of the first h u n d red
largest com m ercial banks in th e n a­
tion are included in th is group, he
added.
“W hile originally it w as th e larg er
banks in th e U nited States th a t took
advantage of th is relativ ely sim ple
form of financing, in recen t y ears the
The First National Bank . . .
sm aller b anking in stitu tio n s and
Famous for its "Men on the Go"
finance com panies have begun to real­
ize m ore fully th e lim itless op p o rtu n i­
ties offered by in v en to ry loans in the
expansion of th e ir credit facilities,” he
said.
NK^\

f

Credit Kaie in Kaals
T HE ever-increasing role th a t field
w arehousing is p laying as a credit
tool in providing collateral for m an ­
ufactu rers, processors, d istrib u to rs and
o th er businesses for b an k loans w as
em phasized in an address last m onth
by G ilbert A. Johnson, a ssista n t vice
p resid en t in th e Chicago office of The
L aw rence Com pany, th e co u n try ’s
largest field w areh o u sin g organization.
Speaking before th e opening session

X

A GOOD NEW YEAR'S RESOLUTION

X

ST
r tlR S T N A n O N A L B A

Promoted By Burroughs
Over Three Quarters of a Century of Banking Service
MEMBER

OF

FEDERAL

D EPO SIT

IN S U R A N C E

Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

C O RPORATION

A rnold H. Ness, w ho form erly held
sales positions in Pueblo, Colo., w ith
B urroughs C orporation, has been ap ­
pointed m anager of th a t office. F o r
the p ast six y ears he has been zone
sales m anager at Sioux City, Iowa.

J,

37

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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, January,

1962

38

OUTLOOK . . .
(C ontinued from page 27)
1962 should be an o th e r good b u si­
ness year for our area. No boom is ex­
pected . . . but th e p a tte rn of steady
grow th should continue. B anking w ill
show gains along w ith th e re st of the
econom y . . . reflected by an increase
in both deposits and loans, and p ro b ­
ably in te re st rates.
But we m u st recognize th a t our
a re a ’s economic p ro sp erity is closely
linked to agricu ltu re. So how good
1962 proves to be w ill depend upon
the w ay prices and w ea th e r tre a t our
a re a ’s farm ers and ranchers.

EDWIN F.
BUCKLEY
President
Central National
Bank and Trust
Company
Des Moines
Iowa

■ The p resen t u p tu rn in our N ational
econom y w ill continue into 1962, until
at least th e th ird q u arter. T here
should be no significant changes in
general business conditions in th e first
q u a rte r of 1962. L ooking at our N a­
tional economy, several segm ents ap ­
pear to have p a rtic u la rly good p ro s­
pects. Increases should be expected in
consum er purch ases of durable goods,
capital ex p en d itu res by in d u stry , and
personal incomes. C ontinuing F ederal
govern m en t deficits and loan dem and
stem m ing from our business u p tu rn

should p ut p ressu re on sh o rt term in ­
te re st rates in th e second qu arter. In ­
te re st rates, both short-term and long­
term should be hig h er by year end.
rrhe possibility th a t the p resen t a d ­
m in istratio n m ay a ttem p t to influence
our econom y in order to achieve a
gross N ational product of $560 to 575
billion, could cause some unsettlin g
effects in our econom y in the fourth
q u a rte r of 1962. W e sincerely hope
th a t th is type of tam p erin g w ith our
econom y w ill not take place.
In th e C entral Iowa area, we expect
to have a v ery good year. The farm °r
will probably not be as successul in
th e com ing year, b u t no significant de­
cline is anticipated. R esidential con­
stru ctio n w ill continue to lag, in com­
parison to p rior years, b u t all con­
stru ctio n activ ity w ill be up in our
area. B ank deposits should be up and
loan dem and should increase slightly
m ore th an deposits.
Our b ank w ill m ake no change in
passbook savings account interest,
Effective Ja n u a ry 1, 1962, we w ill pay
th e increased rate of 4 per cent in terest
on 12 m o n th s’ C. D.’s and 3% per cent
on 6 m o n th s’ C. D’s.
W e an ticipate no significant effect
on our tim e deposits or o ther bank op­
eratio n s from th is change.

Gamble Sales Increase
Gamble-Skogmo, Inc., M inneapolis,
rep o rted com parable consolidated n et
sales for the m onth of N ovem ber w ere
$11,570,040 against sales of $10,635,904
in 1960, an increase of 8.8 p er cent.
Sales for the eleven m onths ended
N ovem ber 30 w ere $126,787,967 against

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re p o r ts fo r e c a st m a rk et tren d s . . . g iv e
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For complete information about this outstanding service, ju st clip coupon,
attach your name and letterhead, and mail to:

DOANE AGRICULTURAL SERVICE, INC.
Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

D'|’

TH E B U S IN E S S OUTLOOK w as th e
to p ic o f discu ssio n fo r a b o u t 1,000 K a n s a s
C ity b u sin e ss e x e c u tiv e s a tte n d in g Com­
m erce T ru s t C o m p an y ’s re c e n t econom ic
fo ru m . M artin R. G-ainsbrugh, c h ie f econ­
om ist,
N a tio n a l I n d u s tr ia l
B o a rd , is
show n a t th e podium . A t r ig h t is Jam es
M. K em per, Jr., C om m erce T ru s t p re s i­
d e n t w ho p re sid e d a t th e fo ru m .

sales of $123,762,749 for the sam e
period in 1960, up 2.4 p er cent.

CONFERENCE . . .
(C ontinued from page 31)
in all, 1962 will be a big volum e year,
b u t it looks like a profitless prosperity.
T erm Loans—E dw ard F. B lettn er:
P lan t and equipm ent expansion is ex­
pected to advance about 4 per cent in
1962 to ju st u n d er $36 billions. P res­
sure on th e capital m ark ets from state
and local governm ents will be larger
in 1962. P ersonal savings are at an
estim ated level of $26 billions, some
13% per cent above th e 1960 figure, so
th ere should be am ple funds for 1962
capital m arkets.
Gaylord A. F reem an, Jr., president
of The F irs t N ational of Chicago, de­
livered an address titled, “The Com­
m ission on M oney and C redit,” follow­
ing th e M onday night banquet. He
served on this com m ission, having
been appointed to rep resen t com m er­
cial banking. He gave an extrem ely
th o u g h tfu l diagnosis of th e com m is­
sion’s report, w ith detailed analysis of
th e pros and cons of th e co n tro v er­
sial issues raised in the report.
Speaking at th e final luncheon ses­
sion w as w ell know n H erb ert V.
Prochnow , executive vice president,
on the subject, “T hree M ajor Chal­
lenges to A m erican F oreign Policy.”
H e listed these th ree challenges as th e
rise of com m unism w ith its th re a t to
th e foundations of our society, th e rise
of th e new nations of th e w orld and
th e ir probem s, and th e rise of W estern
E u ro p e from a w ar-torn econom y to
its p re se n t sta tu re .—E nd.

t

A

Continentals
correspondent

you can employ a staff of experts to survey your
bond portfolio . . . w ith o u t adding to y o u r p a y ro ll
Just call upon the Continental, and let our Bond
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And one of the most experienced.
Upon receipt of the necessary information, our
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relation to your bank’s balance sheet and your par­
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advice in setting up an investment policy, and sug­
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current and expected market conditions.
You can call us direct, 828-2538, Chicago.

C O N T IN E N T A L

Z O

B A N K

S S L

A N D T R U S T C O M P A N Y O F C P IIC A G O
Member F. D. i.

c.


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Federal Reserve Bank of St. Louis

Lock Box H, Chicago 90, Illinois
Nort hwest ern Banker, January, 1962

40

MHaii A .it.A . C redit Conference

T . C. W E D E L

D. M. GRAHAM

J. H . L A E R I

B ANK lending policies w hich w ill
co n trib u te to a sound natio n al
econom y d u rin g th e m onths ahead
w ill be discussed by some of th e coun­
tr y ’s leading ex p erts a t th e 14th N a­
tional C redit Conference of The A m er­
ican B ankers A ssociation. A program

S. M . F L E M I N G

for th e two-day m eeting planned for
J a n u a ry 22-23, 1962, at th e SheratonChicago H otel in Chicago, w as an ­
nounced by J. H ow ard Laeri, chairm an
of th e C redit Policy Com m ittee of the
A ssociation u n d er w hose auspices the
conference is to be held.

MONDAY, JANUARY 22
10:00 A.M.
P residing—J. H ow ard Laeri, C hair­
m an, C redit Policy Com m ittee,
A.B.A., E xecutive Vice P resident,
The F irs t N ational City B ank of
New York.
“C u rren t P roblem s of Money and
C redit”—C hairm an Laeri.
“M eeting th e Needs of Econom ic
G row th”—Sam M. Flem ing, P re si­
dent, A.B.A., P resident, T hird N a­
tional B ank in N ashville, Tenn.
“Some R ecent D evelopm ents in Mis­
siles”—Jo h n M. M artin, Vice P resi­
den t and D irector, H ercules Pow der
Company, W ilm ington, Del.
2:00 P.M.
“R eal E state L ending P a tte rn s of Com­
m ercial B an k s”—W illiam K eesler,
Senior Vice P resident, F irs t N a­
tional Bank, Boston, Mass.
“How Is Y our G overnm ent H elping
Y our C ustom ers to E x p o rt? ”—H a r­
old F. L inder, P resid en t and C hair­
m an, E xp o rt-Im p o rt B ank of W ash ­
ington, D. C.
“T erm L oans”—T. Carl W edel, Vice
P resident, The F irs t N ational City
B ank of New York.
TUESDAY, JANUARY 23
10:00 A.M.
P residing—C hairm an Laeri.
“Problem s of th e J e t A ge”—A ndrew
M. D esvoursney, E xecutive Vice
P resident, U nited A ir Lines, Chi­
cago, 111.
“The C hallenges A head for B anking”
—Dr. C harles E. W alker, E xecutive
Vice P resident, A.B.A., New York.
“B usiness Problem s and P rospects in
1962”—W alter E. H oadley, Vice
P resid en t and T reasu rer, A rm stro n g
Cork Company, L ancaster, Pa.
2 :0 0 P .M .

WORTH,
THE

EAST,

SAVES

TIME,

ITEMS ARE
SE VE N DAYS

T

h

e

F

SOUTH,

W E S T . . .

F I R S T ’ S FAST, A C C U R A T E

i r s t

N

PREVENTS
RUSHED
AND FIVE

a t i o n a l

Nort hwest ern Banker, January, 1962


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

SERVICE

DELAYS.

YOUR

OW T H E I R W A Y
NIGHTS A W E E K .

B

a n k

o f

D

e n

v e r

P residing—C hairm an Laeri.
“Credit Policies and L iq u id ity ”—P anel
R em arks—W illiam M. Edens, P resi­
dent, R obert M orris Associates,
Vice P resident, C ontinental N a­
tional B ank and T ru st Company,
Chicago.
M oderator—F ra n k A. P lu m m e r ,
C hairm an of Board and P resident,
B irm ingham T ru st N ational Bank,
B irm ingham , Ala.
“Lease F in an cin g from th e Com m er­
cial B ank V iew point”—Donald M.
G raham , Vice C hairm an of th e
Board, C ontinental Illinois N a­
tional B ank and T ru st Company,
Chicago.
“R eview of F inance Com pany and
Captive Com pany F in an cin g ”—
S hepard H. P atterso n , Vice P resi­
dent, P ittsb u rg h N ational Bank.
“T erm Loan P articip atio n w ith
B anks”—C. J. F ah erty , Vice P resi­
dent, P ru d en tial In su ran ce Com­
p any of Am erica, N ew ark, N. J.

41

N ew

Isues*19 6 1

Purchased and Offered by Halsey, Stuart & Co. Inc. alone or with associates*
A m ount o f
Issu e

A m ount o f
Issu e

Tax-Exempt

U n d e r w r itin g
In terest

Corporate

$ 3 0 , 0 0 0 , 0 0 0 A L A B A M A E D U C A T IO N A U T H O R IT Y f

$ 5 , 4 9 0 , 0 0 0 A T L A N T IC C O A S T L IN E R A IL R O A D
V ar. R ates R ev. B o n d s
E quip. T r. 4 )4 % C ertificates D u e 1 9 6 3 - 7 7 . . . .
$ 1 ,5 9 0 ,0 0 0
2 0 , 0 0 0 ,0 0 0 T H E B R O O K L Y N U N I O N G A S C O M P A N Y
1 3 . 7 0 0 . 0 0 0 A L A SK A , S T A T E O F f
First M tg e. B o n d s, 5*4% S eries d ue 1 9 8 6 . . . .
V ar. R ates B o n d s
5 .9 5 0 .0 0 0
8,000,000 C A L IF O R N IA E L E C T R IC PO W ER C O M P A N Y
6 .7 6 0 .0 0 0 ALLEG H ENY C O U N T Y , PA.
First
M
tg
e.
B
o
n
d
s,
5%
S
eries
d
ue
1
9
9
1
............................
3 Vz% B o n d s
6 .0 5 0 .0 0 0
2 0 , 0 0 0 ,0 0 0 C H E S A P E A K E A N D P O T O M A C T E L E P H O N E
6 0 . 2 5 0 . 0 0 0 C H IC A G O , IL L .f (2 is s u e s )
C O M P A N Y 3 7 Y ea r 4 )4 % D eb en tu r es, D u e 1 9 9 8
V ar. R ates B o n d s & R ev. C tfs.
5 .8 5 0 .0 0 0
5 . 0 0 0 . 0 0 0 C O M M U N I T Y PU B L IC SE R V IC E C O M P A N Y
8 . 5 0 0 . 0 0 0 C H IC A G O B D . O F E D U C A T IO N , ILL.
First M tg e. B o n d s, 5*4% d ue 1 9 9 1
. . . .
2.100.000
3 )4 % B o n d s
10,000,000 G E O R G IA PO W E R C O M P A N Y
1 4 . 7 2 0 . 0 0 0 C H IC A G O M E T R O . S A N IT A R Y D IS T ., ILL.
First M tg e. B o n d s, 4Ys% S eries d ue 1 9 9 1 .
5 .2 0 0 .0 0 0
2*4% W arrants
5 . 1 0 0 . 0 0 0 G R E A T N O R T H E R N R A IL W A Y
2 5 .0 0 0 .
0 0 0 C H IC A G O -O ’H A R E IN T E R N A T IO N A L
E
quip.
T
r.
o
f
1
9
6
1
4%
C
ertificates,
D
u
e
1
9
6
1
7
6
1 .9 5 0 .0 0 0
A IR P O R T f 4 )4% R ev. B o n d s
4 . 5 0 0 . 0 0 0 IL L IN O IS C E N T R A L E Q U I P M E N T T R U S T
9 . 8 0 0 . 0 0 0 D A L L A S, T E X .f
4% E q u ip . T r . C ertificates D u e 1 9 6 1 - 7 6
. . . .
1 .9 5 0 .0 0 0
V ar. R ates R ev. B o n d s
1 5 .0 0 0 .
0 0 IO
0 W A -IL L IN O IS G A S A N D E L E C T R IC C O M P A N Y
1 7 . 8 4 5 . 0 0 0 D E T R O IT , M I C H .f
First
M
tg
e.
B
o
n
d
s,
4
/s
%
S
eries
d
ue
1
9
9
1
.
3 .1 5 0 .0 0 0
V ar. R ates B o n d s (5 is s u e s )
7 .0 0 0 .
0K
0 0A N S A S G A S A N D E L E C T R IC C O M P A N Y
1 5 .0 0 0 .
0 0 0 D U V A L C O . SPEC . T A X S /D N O . I, F L A .f
First M tg e. B o n d s, 4Y»% S eries d ue 1 9 9 1 .
5 .4 0 0 .0 0 0
V ar. R ates B o n d s
7 . 7 8 5 . 0 0 0 L O U ISV IL L E A N D N A S H V IL L E R A IL R O A D
7 . 1 2 5 . 0 0 0 FL O R ID A S T A T E B O A R D O F E D U C A T IO N
E quip. T r., 3 )4 % C ertificates D u e 1 9 6 2 - 7 6
2 .0 8 5 .0 0 0
V ar. R ates R ev. B o n d s (V a r. S e r ie s )
7 .0 0 0 .
0M
0 0A D IS O N G A S A N D E L E C T R IC C O M P A N Y
3 0 .0 0 0 .
0 0 0 G E O R G IA S T A T E H IG H W A Y
4 )4 % First M tg e . B o n d s, 1 9 9 1 S e r i e s ...........................
2 .4 0 0 .0 0 0
A U T H O R IT Y ! V ar. R ates R ev. B o n d s
3 0 .0 0 0 .
0 0M
0 IC H IG A N C O N S O L ID A T E D G A S C O M P A N Y
6 .0 0 0 .
0 0 0 H IL L S B O R O U G H C O . SPEC . T A X S / D N O .
First M tg e. B o n d s, 5*/é% S eries d ue 1 9 8 6 . . . .
4 .8 0 0 .0 0 0
1, FLA. V ar. R ates B o n d s
3 0 .0 0 0 .
0 0M
0 IC H IG A N W IS C O N S IN PIPE L IN E C O M P A N Y
7 .0 0 0 .
0 0 0 H O N O L U L U , H A W A II
First M tg e. B o n d s, 5*4% S eries due 1 9 8 1 . . . .
5 .5 0 0 .0 0 0
V ar. R ates B o n d s
3 0 .0 0 0 .
0 0M
0 O T O R O L A , I N C .!
1 4 .0 0 0 .
0 0 0 H O U S T O N I N D . SC H . D IS T ., T E X .!
4 )4 % D eb en tu r es D u e 1 9 8 6
................................................
3 .2 7 5 .0 0 0
V ar. R ates B o n d s
1 5 .0 0 0 .
0 0N
0 A T U R A L G A S P IP E L IN E C O M P A N Y O F A M E R IC A !
9 . 6 7 3 . 0 0 0 JERSEY C IT Y , N .J .!
4 )4 % D eb en tu r es d ue 1 9 8 1 .........................................
1 .3 8 7 .0 0 0
4% B o n d s
4 0 .0 0 0 .
00N
0 IA G A R A M O H A W K PO W E R C O R P O R A T IO N
1 2 5 .0 0 0 . 0 0 0 KENTUCKY, C O M M O N W EALTH O F!
G e n e ra l M tg e. B o n d s, 4*4% S eries d ue 1 9 9 1 .
1 1 .5 5 0 .0 0 0
V ar. R ates B o n d s (2 is s u e s )
1 9 , 9 0 4 , 1 0 0 N O R T H E R N I N D I A N A PU B L IC SE R V IC E C O M PA N Y
3 0 .0 0 0 .
0 0 0 LO S A N G E L E S SC H . D IS T ., C A L IF .!
4% C o n v e rtib le D eb en tu r es due 1 9 7 6
............................
1 9 ,9 0 4 ,1 0 0
31/ 2 % B o n d s
4 .0 0 0 .
0N
0 0O R T H W E S T E R N PU B L IC S E R V IC E C O M P A N Y
6 . 2 7 5 . 0 0 0 M A D IS O N , W IS -!
F irst M tg e. B o n d s, 514% S eries d u e 1 9 8 7 . . . .
1 .8 0 0 .0 0 0
3% B o n d s
7 .0 0 0 .
0O
0 0T T E R T A IL PO W E R C O M P A N Y
1 2 .5 0 0 .0 0 0 M A R YLA N D STATE R O ADS
First M tg e. B o n d s, 4 7
/ s % S eries o f 1 9 9 1
. . . .
2 .2 5 0 .0 0 0
C O M M IS S IO N ! V ar. R ates R ev. B o n d s
3 0 .0 0 0 .
0 0 PE
0 O PL E S G A S L IG H T A N D C O K E C O M P A N Y
6 2 .5 4 7 .0 0 0 M ASSA C H U SET TS!
First and R ef. M tg e. 4Y»% B o n d s, D u e 1 9 8 6 .
4 .1 0 0 .0 0 0
31/ 2 % B o n d s
3 0 .0 0 0 .
0 0P
0 U B L IC S E R V IC E C O M P A N Y O F C O L O R A D O
1 3 . 5 0 0 . 0 0 0 M E M P H IS , T E N N .!
First M tg e. B o n d s, 4*4% S eries d ue 1 9 9 1
5 .5 5 0 .0 0 0
V ar. R ates B o n d s (2 is s u e s )
5 0 .0 0 0 .
0 0P
0 U B L IC S E R V IC E E L E C T R IC A N D G A S C O M P A N Y
9 . 3 8 5 . 0 0 0 M IC H IG A N S C H O O L D IS T R IC T S
4 )4 % D eb en tu r e B o n d s d ue 1 9 8 1 ..................................
7 .5 0 0 .0 0 0
V ar. R ates B o n d s (7 is s u e s )
1 5 .0 0 0 .
0 0R
0 O C H E ST E R G A S A N D E L E C T R IC C O R P O R A T IO N
6 0 .0 0 0 .
0 0 0 M IC H IG A N , S T A T E O F !
F irst M tg e . 4*4% B o n d s, d u e 1 9 9 1 ..................................
7 .1 5 0 .0 0 0
V ar. R ates R ev. B o n d s (2 is s u e s )
4 . 2 0 0 . 0 0 0 S O U T H E R N R A IL W A Y E Q U IP M E N T T R U S T ,
1 8 . 4 9 5 . 0 0 0 M IL W A U K E E , W IS -! (2 is s u e s )
SE R IE S V V , 4*4% E quip. T r. C tfs. D u e 1 9 6 2 - 7 6
2 .4 0 0 .0 0 0
V ar. R ates B d s. & R ev. B d s.
1 2 5 , 0 0 0 , 0 0 0 T E N N E S S E E G A S T R A N S M IS S IO N C O M P A N Y !
5 . 3 2 9 . 0 0 0 M IL W A U K E E C O . M E T R O . SEW ER. D IS T .,
5*/g% & 514% D eb en tu r es due 1 9 8 1 ..................................
7 .6 4 5 .0 0 0
W I S .! 3% B o n d s
3 0 .0 0 0 .
00U
0 N I O N E L E C T R IC C O M P A N Y
4 4 . 7 6 4 . 0 0 0 N E W Y O R K S C H O O L D IS T R IC T S
First M tg e. B o n d s, 4 )4 % S eries d ue 1 9 9 1
1 0 .0 5 0 .0 0 0
V ar. R ates B o n d s (V a r. is s u e s )
3 0 .0 0 0 .
0 0V
0 IR G IN IA E L E C T R IC A N D PO W E R C O M P A N Y
1 0 0 . 0 0 0 . 0 0 0 N E W Y O R K S T A T E PO W ER A U T H O R IT Y !
First a n d R ef. M tg e. B o n d s, 4 % % , d u e 1 9 9 1
3 .4 0 0 .0 0 0
V ar. R ates R ev. B o n d s
4 .0 0 0 .
0W
0 0IS C O N S IN M IC H IG A N PO W E R C O M P A N Y
3 2 .0 0 0 .
0 0 0 O H IO , S T A T E O F !
First M tg e. B o n d s, 4 )4 % S eries d u e 1 9 9 1
4 .0 0 0 .
000
V ar. R a tes R ev. B o n d s
4 .0 0 0 .
0W
0 0IS C O N S IN N A T U R A L G A S C O M P A N Y
1 7 . 0 0 0 . 0 0 0 O M A H A P U B L IC PO W ER D IS T ., N E B R .
First M tg e. B o n d s, 4 )4 % S eries d u e 1 9 8 6 . . . .
4 .0 0 0 .
000
V ar. R a tes R ev. B o n d s
5 0 .0 0 0 .
0 0 0 P E N N S Y L V A N IA G E N E R A L S T A T E
7 , 7 8 5 , 0 0 0 A D D I T IO N A L E Q U I P M E N T T R U S T C E R T IF IC A T E S
A U T H O R . V ar. R ates R ev. B o n d s (2 is s u e s )
(3 i s s u e s ) .................................................................................. ......
4 .3 3 5 .0 0 0
4 3 . 6 4 4 . 0 0 0 P E N N S Y L V A N IA S T A T E P U B L IC SC H O O L
Descriptive circulars or prospectuses, where available, and current quotations will be supplied for any o f these
BLD G . A U T H .V a r . R ates R ev. B o n d s (2 is s u e s )
securities upon request.
2 4 . 9 5 7 . 0 0 0 P H IL A D E L P H IA , P A .!
V ar. R ates B o n d s
*To December 13, 1961 f Issue headed jointly by Halsey, Stuart & Co. Inc. a n d others. A ll other issues were headed
by Halsey, Stuart & Co. Inc. alone. N ot included in these compilations are issues in which Halsey, Stuart & Co. Inc.
1 5 . 0 0 0 . 0 0 0 P IT T S B U R G H Sc A L L E G H E N Y C O U N T Y
participated only as a member o f an account.
P U B L IC A U D I T O R IU M A U T H ., P A .!
V ar. R ates R ev. B o n d s
S e n d
F o r Y e a r - E n d
B o n d S u r v e y a n d
H e lp f u l T a x C h a r t
3 5 .0 0 0 .
0 0 0 P O R T O F N E W Y O R K A U T H O R IT Y !
V ar. R ates R ev. B o n d s
Concise survey of 1961 bond market and outlook for
1 1 . 4 0 0 . 0 0 0 P R IN C E G E O R G E ’S C O U N T Y , M D .
V ar. R ates B o n d s
1962, and tax chart to help you determine the value of
1 0 .0 0 0 .
0 0 0 S E A T T L E , W A S H .!
tax exemption in your income bracket. Write without
V ar. R ates B d s. & R ev. B d s (2 is s u e s )
obligation for folders NB-21.
2 5 .0 0 0 .
0 0 0 TEXAS, STATE O F!
3V i% B o n d s
5 . 5 0 0 . 0 0 0 W Y O M IN G , M I C H .!
V ar. R ates B o n d s

HALSEY, STUART

1 7 5 , 7 0 7 , 0 0 0 A D D I T IO N A L T A X -E X E M P T B O N D S
( 1 1 0 is s u e s )


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

123

S.

IA

SALLE

STREET,
AND

CHICAGO
OTHER

90

- 35

PRINCIPAL

I N C .

WALL

STREET,

NEW

YORK

5

CITIES

Nort hwest ern Banker, January, 1962

42
den t of his local school board for th e
F e d e r a l R eserve A anim ares
p ast 12 years.
Several Tap
Lev ClianifesBankers Trust Advancements
IRECTORS of th e F ed eral R eserve
B ank of Chicago accepted “w ith
sincere re g re t,” last m o n th th e de­
cision of Carl E. A llen to resig n as
p resid en t of th e bank. Mr. A llen be­
cam e presid en t O ctober 1, 1956, and
follow ing a vacation period he plans
to re tu rn early n e x t y e a r to a position
in industry .
Prom otion of E lb e rt O. F u lts, as­
s ista n t chief exam iner, b an k ex am ina­
tion dep artm en t, to a ssista n t vice
president, effective J a n u a ry 1, 1962,
also w as announced by Mr. R obert P.
Briggs, ch airm an of th e board.
K enneth V. Zw iener, p resid en t of
H a rris T ru st and Savings B ank, Chi­
cago, has been appointed a m em ber
of th e F ed eral A dvisory Council for
1962 to re p re se n t th e Seventh F ed eral
R eserve D istrict. H e succeeds H om er
J. Livingston, ch airm an of th e board,
F irs t N ational of Chicago.
Jo h n H. Crocker, ch airm an of the
board, The Citizens N ational B ank of
D ecatur, D ecatur, Illinois, and W il­
liam E. Rutz, d irecto r and m em ber of
executive com m ittee, Giddings &
Lew is M achine Tool Com pany, Fond
d u Lac, W isconsin, have been elected
for th ree y e a r te rm s as directors.

D

per cent stock dividend w as paid De­
cem ber 8, to shareholders of record
N ovem ber 3.

Appointed Regional
Sales Representative
Owen D. Boyer of F redonia, Pa., has
been appointed regional sales re p re ­
sen tativ e for W essling Services, Des
Moines, Iowa, it
w as announced by
D. R. W essling,
p r e s i d e n t . The
firm is a n atio n ­
ally know n o rgan­
ization w hich cre­
ates a d v e r t i s i n g
fo r b a n k s and
tru s t com panies.
I t w ill celebrate
40 y ears of serv ­
ice in 1962.
Mr. Boyer w ill re p re se n t th e organi­
zation in Pennsylvania, Ohio, New
Jersey, D elaw are, M aryland, W est V ir­
ginia, and W ashington, D. C.
P revious to joining W essling Serv­
ices, he w as zone m anager for In v e st­
ors Diversified Services, Inc. He is a
past director of th e Mercer, Pa., C ham ­
ber of Commerce, and has been presi-

H en ry J. Cochran, Jr., form erly an
a ssistan t vice president, has been
nam ed a vice president of B ankers
T ru st Company,
New York, it w as
a n n o u n c e d last
m o n t h b y W il­
liam H. Moore,
b ank chairm an.
Sim ultaneously,
M r. M o o re a n ­
nounced th e elec­
tion of C lark R.
G reen as an ash . j. c o c h r a n , j r .
sistan t tru s t offi­
cer, personal tru s t
division; T hom as A. Cox as assistan t
secretary, in v estm en t advisory; W il­
der Foote III, and F ran cis J. Moynahan, a ssistan t secretaries, C orporate
Agency Division, and H en ry J. K ress,
a ssistan t tre a su re r, b ran ch adm inis­
tra tio n division.

New Vice Presidents
At Chase Manhattan
C harles J. Clune and Jam es A. Frya tt have been prom oted to vice p resi­
dents of th e Chase M anhattan Bank,
David Rockefeller, president, an ­
nounced last m onth. B oth are in the
tru s t departm ent.

50-Year Banker Retires
Jo h n B. Connors, vice p resid en t of
S ecu rity F irs t N ational B ank, Los
Angeles, an d one of th e oldest Los
A ngeles b an k ers
in po in t of se rv ­
ice, re tire d last
m onth a fte r 50
y ears in banking.
T he v e te ra n
b anker, a n ative
of H uron, South
D akota, cam e to
C alifornia in 1911,
and joined th e old
F ir s t N a tio n a l
B ank of Los A n­
geles as a bookkeeper.

Approve Common Stock Sale
B ank of A m erica’s sh areholders re ­
cently gave approval to th e ir board
of d irecto rs’ proposal to issue 1,600,000
sh ares of new com m on stock for sale
b y subscription and to pay a five per
cent stock dividend to talin g 1,280,000
shares.
A p referen tial subscription price of
$59 per sh are w as set by th e directors
im m ediately follow ing th e special
sh areh o ld ers’ m eeting a t th e b a n k ’s
head office in San Francisco.
The board announced th a t th e five
Nortfor
hwest
ern Banker, January, 1962
Digitized
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

f ps Surplus $ 5 M illion :
R eports Several Rroniotions
IRECTORS of The F irs t N ational
B ank of Chicago tra n sfe rre d $5
m illion last m onth from undivided
profits account to su rp lu s account. As
a resu lt, The F irs t N ational w ill have
a su rp lu s account of $155 m illion and
capital stock of $150 m illion, a total
of $305 m illion, giving the b an k a legal
loaning lim it of $30,500,000 to an y one
custom er.
F ollow ing th e board m eeting, H om er
J. L ivingston, chairm an, announced
several prom otions am ong th e b an k ’s
staff and th e election of five new offi­
cers.
P au l E. F a rrie r and R obert S.
Swaim, vice presid en ts of th e tru s t de­
p artm en t, have also been designated
executive officers of th e tru s t d e p a rt­
m ent.
O ther prom otions included Jam es
G. Badger, Jr., of D ivision “G,” com ­
m ercial b anking d epartm ent; R obert
K. W ilm outh, o perating personnel de­
p artm en t; C harles E. B randriff, W aid
R. V anderpoel and H. R ichard Wilking, tr u s t departm ent; from a ssistan t

D

vice presid en ts to vice presidents.
H erb ert B. R ay and R obert E. W hite
w ere prom oted from a ssistan t cash­
iers to assista n t vice presidents. Mr.
W hite is in th e correspondent bank
division. Mr. R ay w as tra n sfe rre d
from D ivision “C” of th e com m ercial
banking d ep artm en t to th e term loan
division.
H ow ard B. B outon w as prom oted
from tru s t officer to a ssistan t vice
president; C harles B. Melby, from as­
sistan t atto rn e y to attorney; R ichard
A. A ndersen from a ssistan t tru s t offi­
cer to tru s t officer, and W illiam J.
L ennon from assista n t secretary to
tru s t officer.
Newly-elected officers are R ichard
E. Dooley of th e savings departm ent;
R obert D. H aven of th e b a n k ’s New
Y ork correspondent office; and George
R. McKay, Jr., of D ivision “C” of the
com m ercial ban k in g d ep artm ent, as­
sistan t cashiers; R ichard D. F linn,
a ssista n t secretary, and T erence Lilly,
a ssistan t tru s t officer of th e tru s t de­
partm ent.

43

The expanded
f a c i l i t i e s now
provided by our
new Topeka Regional
Office Building, enable
us to assure the maxi­
mum in efficient Home
Office Cooperation.

Mr. B a n k er-

We Can Make ’62
An Increased Profit Year For YOU!
W IT H O U R T E S T E D

B ankers P articipation P lan !
This popular plan is making worthwhile profits for steadily
increasing numbers of Bankers throughout our operating terri­
tory. It can do the same for YOU! Also when affiliated with our
Bankers Participation Plan, you can enjoy excellent fully paid
conventions (for both man and wife).
National Reserve Life now operates in over one-half of the
states in the Nation and ranks in the u p p e r o n e -fo u r th size
bracket of all American insurance companies. Now’s the time to
write us and make ’62 the year for YOU!
WRITE TODAY FOR
COMPLETE INFORMATION
All correspondence held in confi­
dence. Let us give you detailed in­
formation regarding highly desira­
ble territories now available.

R

CO M PAN

y

H. O . C H A P M A N
President

S . H. W IT M E R
Chairman of the Board
Topeka • Sioux Falls

Nort hwest ern Banker, January, 1962


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

44

Kansas City Changes

bo n ds

HARKET VALUE a A Pm T .O H A E H T

IU
3.76I

$ 5 3 ,6 0 0
2 9 ,1 4 0

bonds

PREFERREDS
COHHONS
CASH

100
I6 .I 5O

m o r t g a g es

$2“*2 .7 5 1

grand t o t a l

U ’ 000

' U s

, 0 ' 0<>0

3 A LIQ U IP P a pa s m

3 7/e , ,

T« A S

c

>3,000

212.0
2.1%

>o, 600
9 .7 0 0
2 0 ,3 0 0

ioo.#o%
preferr ed

sto ck s

150
i
100 - i
70 «2 «E R C K SJ3 50 ppn5% PFD

100 2
2wewat Itores &4p« PFD
COMMON STOCKS E S T /D IV

$

85 !

GRAND TOTAL

i ' 0 . 3 1*8

5 ' 28
‘• • 26X

AMERICAN T EL t re ,
ARMSTRONG CORK T £L
BORDEN
W

Í'2
^73 -1r1
2 »
? V
100 2
i &
T
P^ C EOTIL
228 1
*
♦
0
0
-i
phuadelpm^ c
220500 -jJ i"ESTINGHOUSE
300
330

l mob o
nr

elec

100

CASH
a v a il a b l e

3 -3 “
I . No

tr

2-°°
5 .0 0
2 . 24

53,600
. 150
86.2
00
6,090
8 . 700
2 9 , lAo
9 .4 50
> 3,200
2 0 ,1 8 8
2 0 .3 3 9
>3.200
8 .2 5 0

8,000
>98.2,85000
>>,000
>/» 3 .7 6 |
> 2.084

504

>0,300

>0,000

£ S T . IN C . A CUR. * E ™ R"
$ 2 .3 2 9
**. 35%
BONDS
. 339
4 .6 0
p referr ed s
U .05
COHHONS
.
h o rtga ce

>3.512

>0.300

5 9 .2

525

9 .3 0 0

*♦50

>00,2
,20000
>
20,A
OO

500
350
850

5 3 .5 1 2

2 .3 2 9

7 .5 5 3
9 ,9 0 0
7 . 137
9 ,0 0 0
3 3 ,5 9 0
5 .5 6 5
2 .8 7 4
5 ,0 0 7
8 16
2 .3 2 0
7 .4 7 3
3 .8 3 7
5 .3 5 5

^.349

2 .2 9 4
4 .2 8 1
* 4 ,17,

•. 04 j
600
370
500

5 .8 2 7

cash

MORTGAGES
7 . ISO
9 .0 0 0

MORTGAGES - C¥
MORTGAGES - | %,/2%
7 , 150

0
>98,.0I050
g ran d

TOTAL

7 . 150
9 .0 0 0
>6 , 150

W.75. 1L7,523

358
495
853
>0.348

Such committee shall, at least once during each period of twelve
months, review all the assets held in or for each fiduciary account to
determine their safety and current value and the advisability of retain­
ing or disposing of them; and a report of all such reviews, together
with the action taken as a result thereof, shall be noted in the minutes
of the trust investment committee.

S T U D LEY , S H U P E R T A PPRA ISALS
S A V E Y O U TIM E, W O RK AND M O N E Y
IN C O M P L Y I N G WITH S E C T I O N 6 (c)
OF REGULATIO N F
Here’s how to put an end to the frantic, last-minute rush and worry (and to
upsetting the daily routine of your Trust Department) as the time approaches
for your Trust Committee to make its periodic review of account assets in
compliance with Section 6 (c) of Regulation F.
What’s more, here’s how to put an end to handing your committee members
inadequate, inefficiently prepared (and sometimes inaccurate) appraisal data.

B a rre t S. H eddens, Jr., president,
F irs t N ational B ank of K ansas City,
has announced the ap p ointm ent of
Dale B u rk et as personnel director.
Mr. B u rk et w as fo rm erly w ith the
K nutson Com panies of M inneapolis,
Minn., and Solar A ircraft Com pany
of Des Moines, Iowa.
Clarence E. Johnson, vice president,
fo rm erly personnel director, has been
tra n sfe rre d to th e com m ercial divi­
sion as a loan officer h an dling com­
m ercial and personal accounts. He
w as in th e discount d ep artm en t 20
y ears before becom ing personnel di­
recto r in 1950.

Two New Offices
The B ank of C alifornia, N.A., San
Francisco, has received approval to
establish b ran ch offices at F rem o n t
and H ayw ard, announces E dw in E.
Adams, president. Mr. A dam s also
announced the follow ing prom otions
in the official staff of th e bank:
At th e head office E ugene H. G ray
w as elected vice p resid en t and tru s t
officer; D avid A. B ryant, assistan t
vice president;
Donald E. Seese,
a ssistan t com ptroller, and Ju lian
Id iart, a ssistan t secretary. Malcolm
S. G raham w as advanced to a ssistan t
cashier in the business developm ent
departm ent.

St. Louis Promotions
Sidney M aestre, board chairm an,
M ercantile T ru st Company, St. Louis,
has announced th e election of W illiam
A. Brady, form er auditor, to vice
p resid en t and head of th e b a n k ’s oper­
ating departm ent. Mr. B rady has
been w ith the b ank since 1928, w as
m ade an a ssistan t cashier in 1951
and prom oted to a ssistan t vice p resi­
dent in 1956. In May, 1959, he w as
m ade au d ito r of the bank.

Studley, Shupert Appraisals, Inc. relieves you of the whole job . . . furnishes
you with complete, detailed, conveniently arranged professional investment
statements compiled on IBM equipment from accurate, current prices.
Material includes all items—Bonds, Preferred Stocks, Common Stocks, Mort­
gages, Principal Cash—grouped by categories for easy use. Percentage of each
to the total is shown. Book Values, Current Market Values and Estimated
Annual Income also are shown.
These statements arrive in your Trust Department on time, according to your
review schedule. And there are enough duplicates to provide each committee
member with his personal copy.
Experience with numerous banks proves beyond doubt that Studley, Shupert
Appraisals can save you time, work, headaches and dollars, regardless of the
size of your Trust Department. Write today for full details.

STUDLEY, SHUPERT APPRAISALS, Inc.
155 Berkeley Street, Boston 16
1617 Pennsylvania Boulevard, Philadelphia 3
Nort hwest ern Banker, January, 1962


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

W . A. B R A D Y

J. J. D O L I S

Jo h n J. Dolis has been nam ed to
succeed Mr. B rady as b ank auditor.
Mr. Dolis has been w ith th e bank
since 1920 and has w orked in tellers,
com ptrollers, bond and au d itin g de­
partm en ts, becom ing a ssistan t auditor
in 1959.

45

F irst N a tion u l ('iti/ Hank
A nnounees Several Chani/es

Mr. Businessman:

WHYTIE UP
YOUR MONEY ? ? ?
W hy tie up your capital investm ent
in a monum ental type building when
you can have a high-quality, per­
m anent structure for a fraction of
ordinary type construction?
R. L. H O G U E T

E . L. P A L M E R

G. C. S C O T T

F IRST N ational City B ank of New
York has announced th a t R obert L.
H oguet, senior vice president, will as­
sum e su pervision of th e b a n k ’s tru s t
division. Mr. H oguet w as form erly in
charge of th e n atio n al division’s seven
geographical d istric ts in th e eastern
portion of th e U nited States.
E ben W. Pyne, senior vice president,
form er head of th e tr u s t division, w ill
be in charge of th e b a n k ’s dow ntow n
h e ad q u a rte rs a t 55 W all Street.
George C. Scott, senior vice p re si­
dent, natio n al division, w ill assum e
supervisio n of all 12 dom estic geo-

P. W . K I M Z E Y

g raphical d istricts including national
services.
As d ep u ty supervisors to Mr. Scott,
P aul W. Kimzey, vice president, w ill
be in charge of th e eastern group of
d istric ts in th e national division, and
E d w ard L. Palm er, vice president, w ill
be in charge of th e w estern group. Mr.
P alm er also w ill continue to head the
b a n k ’s w estern district. P. H en ry
Mueller, vice president, w as placed in
charge of th e New York-New Jersey
district.
J. H ow ard Laeri, executive vice
president, is senior officer in charge of
th e natio n al division.

WHY NOT JUST ONE PACKAGE?

Agents inquiries are welcomed.
Write
616 10th Street

• T w o sem i-trailer size doors.
• T w o w alk-in doors.
• 40 ft. clear span center
section.
• C on crete fou n d ation s.
• N ation ally-k n ow n , top
q u ality m aterials used
throughout.

Add'ì
L iv in g

Expenséis

Im possible? No sir! L et us show you
how to stretch your 48c building dol­
lar into a hundred cents or more
w ithout sacrificing quality or appear­
ance. Free engineering services— no
obligation.
W e have been in business for over
one-third of a century, serving in­
dustry and com merce by construct­
ing m oney-making buildings.

F or fu r th er in fo rm a tio n
p l e a s e w r i t e o r ca ll :

THE E. G. CLINTON CO.
740 W ashington A venue North

Des Moines 8, Iowa

A Multiple Line, Non-Assessable Company


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

• 260-sq. ft. sk yligh ting.

A b o v e b u ild in g costs o n ly $1.63
a square fo o t in clu d in g a 6 inch
rein forced co n crete floor, in­
sta lled and gu aran teed .

says

Western Mutual is a multiple-line
Company writing through the
American Agency system.

• 8 ft. sid ew a lls.

• C o m p le te ly d eliv ered
and con stru cted by
ex p erien ced , insured
crew s.

W e s te rn M u tu a l
Insurance Co.

One Package Policy to cover
the Homeowners or Tenants.
Complete Protection in
One Policy, One Premium
and One Renewal Date.

Im agine ow ning a steel-clad building
of more than 17,000 square feet with
the follow ing specifications:

M inneapolis, M innesota
FE deral 3-1428

Nort hwest ern Banker, January, 1962

H. G. PETERSON
Ass’t Vice Pres.

O. M. ANDERSON
Ass't Cashier «

?\i M
■vT ?ni!

P. B. DAMKROGER
Ass’t Cashier

? R. G. ZIEMER
Ass’t Vice Pres.

E. N. AXNESS
Representative
C. P. LINDHOLM
Ass’t Vice Pres.

D. E. CROULEY
Senior Vice President
H. L. TYSON
Vice President

'

L. M. BROOM
Vice President

L. P. GISVOLD
Vice President

P. E. KOCH
Representative

This is the heartfcll

Department of Banks and Bankers

N o rth
Serving Bankers
Since 1872


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

Minneapolis, Minnesota
Phone FE 2-0123
MEMBER FEDERA L DEPOSIT INSURANCE CORPORATION

47

B ank of V irginia, president; Jam es
H a n s e n , a ssistan t cashier, Security
State Bank, H ibbing, vice president;
Jack Owens, president, F irs t N ational
Bank, E veleth, secretary-treasurer.

Minnesota
NEW S
P. R. KENEFICK
K. A . W A LES

President
Secretary

Mankato
Minneapolis

M ontevideo Changes
Lyle F. M cCorm ick h as been elected
p resid en t of th e U nion State B ank of
M ontevideo, Minn., succeeding C harles
O. B ennett, w ho re tire d recen tly a fte r
serv in g as p resi­
d en t for 18 years.
R o g e r K u h lm a n n, c a s h i e r ,
has been elected
v ic e p re s id e n t
and cashier.
Mr. M cCormick
began his b a n k ­
ing career in 1948
at A b e r d e e n , S.
D., a n d s e r v e d
L . F. M c C O R M IC K
th e re u n til resig n ­
ing on D ecem ber 31, 1956, to becom e
p resid en t of th e N o rth w e ste rn State
B ank of Dodge C enter, Minn. On Ju ly
15, 1960, he resigned th a t position to
becom e executive vice p resid en t of the
U nion S tate B ank of M ontevideo.
Mr. K u h lm an n joined th e U nion
S tate B ank in 1957 as a ssista n t cashier
and m an ag er of th e in sta llm e n t loan
d ep artm en t. He w as nam ed cashier
in A ugust, 1958.
Mr. B en n ett has com pleted over 42
y ears of b an k in g and has been asso­
ciated w ith th e U nion State B ank for
21 years. He w ill continue as a direc­
tor.

Banks Give Scholarships
N ineteen boys are being sponsored
a t th e U n iv ersity of M innesota th is
y ear by M innesota C ounty B ankers
A ssociations t h r o u g h $400 sch o lar­
ships.
Dean K eith N. M cFarland, directo r
of resid e n t in stru c tio n a t th e U n iv er­
sity, recen tly p raised th e M innesota
B ankers A ssociation and th e county
associations for th e o u tstan d in g w ork
th ey are doing in th is area.

Assumes Management
Chas. W. Spaulding, re tire d p re si­
d en t of th e F a rm e rs N ational B ank in
W aseca, Minn., has ta k e n over m a n ­
agem ent of th e State B ank of M orris­
tow n on a te m p o ra ry basis.
A fter th e d eath of H a rla n Pye direc­
to rs elected Mr. Spaulding vice p re si­
dent. W illiam W. Pye rem ain s as
presiden t. R obert E. Pye w as nam ed

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Federal Reserve Bank of St. Louis

Joins Sterling Staff

a vice president, and Mrs. Nellie M ur­
p h y w as prom oted from a ssistan t cash­
ier to cashier.

80th Anniversary
Open house w as held at th e F a rm e rs
N ational B ank of W aseca recently,
m ark in g th e b a n k ’s 80th anniversary.
Several valuable door prizes w ere
aw arded.

Receive Bond Awards
Several M innesota banks and b an k ­
ers have received special recognition
for o u tstan d in g w ork in th e sale of
U. S. Savings Bonds.
The In tern atio n al State B ank at In ­
te rn a tio n a l F alls and th e F irs t N ation­
al B ank of B audette received recogni­
tion for exceeding th e ir sales quota.
Jo h n T erhaar, cashier, F irs t State
Bank, Rice, received a U. S. T reasu ry
Savings Bonds D ivision Award.

Help 4-H Program
A n u m b er of M innesota banks have
rep o rted p articip atio n in th e N ational
4-H Club program . Included are the
State B ank of Conger, th e Richfield
B ank & T ru st Company, th e F a rm e rs
& M erchants S tate and th e N o rth w est­
e rn S tate of A ppleton, th e Security
State of Sebeka, th e F irs t N ational
of P a rk e rs P rairie, and th e F irs t N a­
tio n al B ank of Spring Valley.
All have m ade contributions to the
N ational 4-H Club F oundation.

Low ell R. Moen, form erly a ssistan t
cashier at th e State B ank of N orthfield. Minn., has joined th e S terling
State B ank as assistan t cashier.
P rio r to his affiliation w ith th e
N orthfield bank, Mr. Moen w as w ith
the in surance agency of th e A ustin
State B ank for six years.

Leaves Moorhead Bank
“R. J. “Bob” Nelson has announced
his resignation as vice p resid en t and
cashier of th e F irs t N ational B ank in
M oorhead, effective D ecem ber 31. He
stated th a t his fu tu re plans are indefi­
nite.

Adds Equipment
The K anabec State Bank, Mora,
Minn., recen tly installed a B urroughs
electronic accounting m achine.

50th Anniversary
Open house w as held recently
S ecurity State Bank, H ouston,
m ark in g th e 50th an n iv ersary
bank. Coffee and doughnuts
served to all visitors.

at the
Minn.,
of the
w ere

60th Anniversary
The Peoples State B ank of M adison
Lake, Minn., celebrated its 60th an n i­
v e rsa ry recen tly w ith an open house.
The b an k opened on N ovem ber 18,
1901, as th e B ank of M adison Lake. It
w as incorporated as th e Peoples State
B ank of M adison Lake in 1906 and be­
came a public ow ned corporation in
1932.

Moves to New Quarters
Fillm ore Bankers Meet
The a n n u al m eeting of th e Fillm ore
C ounty B ankers A ssociation w as held
recen tly at Spring Valley, Minn.
New officers are Carl V. Lind, execu­
tive vice president, H arm ony State
Bank, p resident; E. R. H edeen, p re si­
dent, G ranger State Bank, vice p resi­
dent; O. M. Johnson, executive vice
president, F irs t State Bank, F o untain,
tre a su re r, and L ym an A. F ries, Jr.,
executive vice president, F irs t State
Bank, W ykoff, s e c r e t a r y . O utgoing
p resid en t is L. H. G augert, president,
F irs t N ational Bank.

Range Bankers Elect
Officers elected at a m eeting of th e
Range B ankers A ssociation are R ay
W i l l e n b r i n g , vice president, State

The State B ank of Redwood Falls
has been m oved to new q u a rte rs a
block south and across th e stre e t from
th e old location. The b an k is now
housed in th e rem odeled F a rm e rs
State B ank Building.
The new q u a rte rs give th e b ank
about th ree tim es its form er banking
room, Jesse Olson, president, said.

IMPORTANT NOTICE!
W e w ant to p u b lish new s of any
officer or d irector ch an ges, in ­
creases in ca p ita l stru cture, or
o th er im p o rta n t action tak en at
yo u r a n n u al m eetin g . Send th is
new s at on ce to N o r t h w e s t e r n
B a n k e r , 306 F ifte en th Street,
D es M oines 9, Iow a.
Nort hwest ern Banker, January, 1962

48

H R E E vice p resid en t of th e F irs t
N ational B ank of St. P au l have
been advanced to senior vice p re si­
dents. T hey are Clarence G. Frame,
Lloyd Li. Beider and Arthur L. Peters.
David A. Shern w as advanced from
assistan t cashier to a ssista n t vice p re s­
ident. Donald H. Thomas w as elected
an a ssista n t vice president, and Jo­
seph E. Fechter and Robert S. H iggins
w ere elected a ssista n t cashiers.

T

FRAM E

PETERS

L E ID E R

D irectors of th e b an k voted to tra n s ­
fer $3 m illion to th e b a n k ’s su rp lu s ac­
count from undivided profits, in creas­
ing th e b a n k ’s su rp lu s to $23 m illion.
T otal capital funds exceed $38 m illion.
Mr. L eider heads th e business de­
velopm ent division and M essrs. F ram e
and P eters are senior loan officers. All
th ree c a rry im p o rta n t a d m in istrativ e
duties.
Mr. S hern has
been w ith
th e
b an k since 1949
and
c o n tin u e s
w ith th e corres;pon d en t b a n k di­
vision, w hich he
joined in 1959.
Mr. T hom as is
w ith th e in d u s­
tria l developm ent
d ep artm en t, Mr.
D . A. S H E R N
F le tc h e r is m a n ­
ager of the ta b u la tin g division and Mr.
H iggins is assigned to th e custom er
service center.
* =f= *
E lection of th re e new officers a t th e
F ed eral R eserve B ank of M inneapolis
has been announced by Atherton Bean,
ch airm an of th e board. T hey are Earl
O. Beeth, discount d ep artm en t, and
Howard E. Knous, check departm en t,
both a ssista n t cashiers, and John A.
Nort hwest ern Banker, January, 1962


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

MacDonald, head of th e plan n in g de­
p artm en t. Mr. Bean also announced
prom otion of John J. Gillette from as­
sista n t cashier to a ssistan t vice presi­
dent.
* * *
Albert W. Gray, vice presid en t and
tr u s t officer of th e M idland N ational
B ank of M inneapolis, has been elected
a vice p resid en t of th e N o rthw est Bancorporation. He w ill join th e corpo­
ra tio n ’s in v estm en t d ep artm en t F eb ­
ru a ry 1, and w ill succeed Arthur R.
Evans as m anager of th e d ep artm en t
w h en Mr. E v an s retires n ex t July.
*
*
Thomas F. Eibera, a ssistan t tru s t of­
ficer, F irs t N ational B ank of W inona,
has been nam ed a tru s t officer of the
N o rth w e stern N ational B ank of St.
Paul.
'i' ^ ^
William R. Chapman, president, Mid­
land N ational Bank, M inneapolis, has
announced th a t Mrs. Joan B. Holten,
bookkeeper, is a prize w in n er in the
nation-w ide “B ankers A w eigh” contest
sponsored by A m erican E x p ress Com­
pany. She w on sixth prize.
* * *
D irectors of th e F ed eral R eserve
B ank of M inneapolis have elected
John A. Moorhead, president, N o rth ­
w e ste rn N ational Bank, as th e dis­
tr ic t’s re p resen tativ e to th e F ed eral
A dvisory Council, and reappointed O.
M. J o r g e n s o n , chairm an, Security
T ru s t and Savings Bank, Billings,
Mont., as a d irector of th e F e d ’s Mon­
ta n a branch.
* * *
The M arquette N ational has an ­
nounced th a t it recen tly becam e the
first com m ercial b an k in th e U pper
M idw est to utilize color television in
selling b an k in g services by sponsoring
NBC’s “M eet th e P re ss” p rogram on
Sunday afternoons.
* * *
Carl R. Polilad, president, M arquette
N ational Bank, w as th e principal
sp eak er a t th e an n u al C hristm as p a rty
given for m ore th a n 400 b an k officers,
em ployees, re tire d em ployees and di­
rectors.

John F. Nash, form er president,
B ank of Palm Beach and T ru st Comp a n y, P a l m ,
B e a c h , Fla., has
joined th e American N atio n al
B ank of St. Paul
as executive vice
presid en t and di­
rector. Mr. N ash
becam e presid en t
of th e P a l m
B e a c h b a n k in
j. f . n a s h
1960. P rio r to th a t
he w as senior vice
president, secretary and senior loan
officer, F irs t N ational B ank & T ru st
Company, South Bend, Ind.
* =t= *
The w ay has been cleared for estab­
lish m en t of a state b ank in Roseville,
n o rth e rn St. P aul suburb. N orthw est
B ancorporation announced it w ould
n ot appeal a F ed eral R eserve B oard
rejection of its application to acquire
controlling stock of a proposed Rose­
ville N o rth w estern N ational Bank.
H eading th e state b an k group is D.
K. Tyler, Phillips, Wis., banker. Also
associated w ith th e group is Beldin H.
Loftsgaarden, form er Roseville village
attorney.
* *
Harold L. Rutchick, president, Sib­
ley Plaza State B ank of St. Paul, an ­
nounced th e b an k has been notified it
w ill be covered by th e F ed eral D eposit
In su ran ce C orporation. The b an k is
scheduled to open for business soon.
* * *
An expansion and rem odeling pro­
gram w hich w ill double th e custom er
service areas of F irs t Southdale N a­
tional B ank in su b u rb an M inneapolis
w as announced by Donald W. Judkins,
president.
The b an k w ill take over space for­
m erly occupied by a real estate firm
and an in surance broker. I t also w ill
utilize a corridor know n as “W all
S treet” w hich fo rm erly connected th e
b an k lobby w ith “B loom ington L ane”
on th e u p p er level of Southdale Cen­
te r in E dina. The rem odeling w ill

Minnesota News
provide an L-shaped lobby w ith a new
en tran ce fro n tin g on th e B loom ington
L ane corridor, tw o new w alk-up Win­
e rs ’ w indow s, and a drop-in le tte r and
n ig h t depository, as w ell as o th er fa­
cilities.
* * *
Carl M. Jorgenson, W est St. Paul,
has been nam ed M inneapolis b ran ch
m anager for Diebold, Inc., m an u fac­
tu re r of office eq u ip m en t and b an k
production products. H e succeeds Les
Johnson, now m an ag er in Cleveland.
* * *
Gordon B. Carlson, fo rm er natio n al
b a n k exam iner, has been elected as­
sista n t vice p resid en t of Stock Y ards
N ational B ank of South St. Paul. R.
L. Smith, p resid en t of th e bank, also
announced th e election of Harold G.
Steffen and E. A. Johnson, Jr., as as­
sista n t cashiers.
*
*
N. Bud Grossman, p resid en t M etro­
politan A u t o m o t i v e Com pany, has
been elected a directo r of F ra n k lin
N ational B ank of M inneapolis.
* * *
Two new officers w ere elected to th e
official staff of th e A m erican N ational
Bank, St. Paul, and four officers w ere
advanced in ran k , it w as announced
by Rollin O. Bishop, president.

R. E . S IP P L E

Drive-In Unit Opens
O rin Sam stad, president, H astings
N ational Bank, H astings, Minn., re ­
cently announced the opening of the
b a n k ’s new drive-in facility.
Also announced w as th e elim ination
of pass books for checking account
custom ers.

Adds to Bank Property
T he N ational C itizens B ank of M an­
kato, Minn., recen tly p u rchased p ro p ­
e rty now occupied by th e D alton Mo­
to r Com pany. The purchase w as m ade
as p a rt of a long range expansion pro­
g ram by th e bank, alth o u g h no im m e­
diate use of the p ro p erty is planned.

Gives 4-H Awards
The R enville County B ankers Asso­
ciation recen tly p r e s e n t e d special
plaques to 4-H exhibitors of livestock
cham pions a t th e R enville County
F air. The aw ards w ere presen ted as
p a rt of an an n u al 4-H Round-Up held
at th e Olivia H igh School.

Frank G. Held, 100, Dies
F ra n k G. Held, vice p resid en t and
directo r of th e S ecurity State B ank of
K enyon, Minn., died recently. He w as
100 y ears old.
Mr. H eld had been on th e board of
th e predecessor of th e S ecurity State
B ank p rio r to th e depression and w as

49

elected d irector of th e S ecurity State
w hen it w as organized in 1934.
A p ictu re and sto ry observing Mr.
H eld’s 100th b irth d ay appeared in th e
June, 1961, N orthw estern B anker .

Files Application
A n application for a state b an k ch ar­
te r in Fridley, Minn., has been filed at
th e state b an king division.
The applicants, w ho eith er live in
F rid ley or have th e ir business there,
are H erb ert W. Bacon, Jr., an electri­
cal contractor; B. G. Black, in surance
agent; R am on C. Carlson, lum ber com ­
p any m anager; Donald W. H arstad,
contractor; D. F. Melton, P rogram m ed
and Rem ote Control System s C orpora­
tion executive, and Donald C. Savelkoul, attorney.
The application proposes a capital
stru c tu re of $300,000, consisting of
$150,000 in com m on capital, $100,000 in
su rp lu s and $50,000 in undivided p ro f­
its.

Cokato Remodeling
Open house w as held a t th e State
B ank of Cokato, Minn., recently, m a rk ­
ing th e com pletion of a rem odeling
program . A large crow d tu rn e d out
to view th e m odernized q u arters. Door
prizes w ere aw arded and cookies,
doughnuts and coffee w ere served.

D. L. M O R R IL L

New officers are: Gerald E. Kaphing,
m anager, electronics d ata processing
division, and Mrs. Elizabeth Hagerty,
secretary to th e p resident, w ho w ere
elected a ssista n t cashiers.
Dale Morrill and Robert Sipple, fo r­
m er a ssista n t cashiers, d e p a rtm e n t of
ban k s an d ban k ers, and Edward J.
Zimmerman, fo rm er a ssista n t cashier,
tim e sales financing division, w ere ad­
vanced to a ssista n t vice presidents.
Steven W. Kane, fo rm er a ssista n t
vice presid en t, tim e p ay m en t d e p a rt­
m ent, w as prom oted to vice president.

Clinton Addition,
R em odeling

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offers banks a special service as a plus factor in our
Bankers Blanket Bond Policy. Many banks, large and
small, consult with the St. Paul about the design and
construction of protective equipment; we regularly assist
banks in developing safeguards to handle currency. Just
one more reason why most Upper Midwest banks carry
St. Paul’s Bankers Blanket Bond coverage.

W ork began recen tly on an addition
to th e Clinton State B ank, Clinton,
Minn., and a rem odeling of th e p re s­
e n t building.
A 17-foot ad dition is being con­
stru cted to provide m ore storage for
records and bookkeeping facilities.
N orthw estern Banker, January, 1962


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

50

Minnesota News

W ilmont Rem odeling

80th Anniversary

W ork has begun on th e rem odeling
of th e F irs t N ational of W ilm ont,
Minn., and plan s call for constru ctio n
of a new v a u lt and conference room
in the new ly-acquired post office b u ild ­
ing to th e w est of th e p re se n t bu ild ­
ings.
The form er post office b uilding is
to be converted into a sidew alk level
lobby. A new fro n t and o th er rem odel­
ing w o rk w ill be done to th e tw o
buildings, giving th e ap p earance of
one new building. T his additional
area w ill m ore th a n double th e space
of the bank.

Joins M ontevideo Staff
David W allien, life-long resid en t of
M ontevideo, has joined th e in su ran ce
d ep artm e n t of th e U nion S tate B ank
of M ontevideo, Minn. K en n eth E. W il­
cox, w ho has headed th e in su ran ce de­
p artm e n t for th e p ast four years, has
joined th e cred it d e p a rtm e n t of th e
N orthw est B ancorporation in M inne­
apolis.

Wins A.B.A. Award
The M innesota B an k ers A ssociation
for th e 23rd consecutive y e a r has re ­
ceived th e an n u al A m erican B ankers
A ssociation’s A g ricu ltu ral A w ard for
o u tstan d in g service to agriculture.
P aul W. G andrud, vice president,
Sw ift C ounty B ank, Benson, w as
ch airm an of th e M.B.A. ag ricu ltu ral
com m ittee w hich organized th e 196061 program .

Forms Holding Corporation
A new M innesota co rporation has
been form ed to b u y and hold co ntroll­
ing in te re st in b an k s in sm aller cities
and tow ns in M innesota.
P resid en t of the corporation, called
M innesota B ancshares Corp., is W al­
te r R. Olson, president, S ecurity State
B ank of F e rg u s Falls. H ead q u arters
for th e firm w ill be in F erg u s Falls.
In v esto rs th u s far have paid in over
$100,000 in capital, according to Mr.
Olson, w ho w ill devote m ost of his

C on te s t

W in n e r s

The F irs t N ational B ank of Glen­
coe, oldest ban k in McLeod County,
celebrated its 80th an n iv ersary re ­
cently w ith an open house. F ree cof­
fee and cookies w ere served and 50,000
trad in g stam ps w ere given away.

County Bankers Elect

W IN N E R S in th e n a tio n w id e “B a n k ­
ers A w e ig h ” c o n te st sp o n so red b y
th e
A m e ric a n E x p re ss
C om pany
w ere Ruth K le tt, s e c re ta ry , a n d Jim
G allagher, o p e ra tio n s a n a ly s t fo r
th e F i r s t N a tio n a l B a n k of S t. P a u l,
show n h ere w ith P h ilip N ason, c en ­
te r, p re sid e n t, F i r s t N a tio n a l. M iss
K le tt p la c e d fifth a n d M r. G a lla g h e r
w as 7 th p lace w in n e r. T he a w a rd s
w e re p re se n te d b y M r. N a so n w ith
a m essage o f c o n g ra tu la tio n s fro m
Jam es A. H enderson, vice p re sid e n t,
A m e ric a n
E x p ress.
P riz e s
w ere
a w a rd e d fo r e n trie s in th e c o n te st
to se lec t a n o rig in a l nam e fo r th e
sym bolic “ T ra v e le rs C heque F a m ­
ily .”

tim e to m anagem ent of th e corpora­
tion.
W alter Zastrow , vice presid en t of
th e C herokee State B ank of St. Paul,
is d irecto r and secretary, and W arren
K. Nye, vice president, O tter Tail
Pow er Company, F erg u s F alls is vice
p resid en t and treasu rer.
D irectors are A lbert V. H artl, p re s­
ident, O tter Tail Pow er Company, and
Jesse Olson, president, S tate B ank of
Redwood Falls.
A uthorized capitalization of th e firm
is 500,000 shares of Class A com m on
stock and 100,000 shares of Class B
com m on stock.

Lowry Prom otion
C harles D. T hom pson has been pro­
m oted to a ssistan t cashier at th e
L ow ry S tate Bank, Low ry, Minn., re ­
p o rts Clifford Mork, p resid en t and
cashier.

The follow ing officers and directors
w ere elected at a recen t m eeting of
the B row n County B ankers Associa­
tion:
Don Gollnast, Citizens State Bank,
New Ulm, president; A1 Paulson,
State B ank of H anska, vice president;
Jim Schm itz, State B ank of Sleepy
Eye, secretary-treasurer; and G. M.
Pieschel, F a r m e r s and M erchants
State Bank, Springfield; E d Tam s,
People State Bank, Comfrey, direc­
tors. Milo Wood, F a rm e rs and M er­
ch an ts State Bank, Springfield, is re ­
tirin g president.

Capital Increased
Common capital stock of th e F irst
N ational B ank in Cannon Falls, Minn.,
has been increased from $60,000 to
$120,000 by a stock dividend.

New Board Member
Dr. K. A. Z im m erm an w as elected
to th e board of th e F irs t N ational
B ank of B reckenridge, Minn., recen t­
ly. He succeeds his father, Dr. H. T.
Zim m erm an, w ho died recently after
serving on th e board 25 years.

Waconia Director
Dr. A. L. A rnold has been appointed
a director of th e F irs t N ational B ank
in W aconia, Minn. H e fills a vacancy
w hich has existed since th e death of
C harles H. Klein, presid en t and found­
er of th e bank.

Named to Board
F.
A. B uscher, president, N ational
B ank of Commerce, M ankato, has
been nam ed to th e board of U nited
Inv esto rs C orporation of M inneapolis,
a holding com pany.

Maynard Director

ACCIDENT, SICKNESS and HOSPITAL
INSIIHANEE AT EDST!
Bankers are Select Risks and we have special coverage
designed for Bank Men and Women. Write for Application
and Information.

Minnesota Commercial Men’s
Association
Minneapolis 4, Minnesota

2550 Pillsbury Ave. S.
Northwestern

Banker,

January,


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

1962

R obert L. Carlson, G ranite F alls a t­
torney, has been elected a director
and vice p resid en t of th e Security
State B ank of M aynard. He succeeds
O. T. H augen as director. Mr. H augen
died several m onths ago.

New London Changes
H arv ey H anson, assista n t cashier,
has been prom oted to cashier of the
F a rm e rs State B ank of N ew London,
Minn. D orothy G ronli has been elect­
ed a ssistan t cashier.

Minnesota News

Albert Lea Prom otions
The F irs t N ational B ank of A lbert
Lea, Minn., has announced th e p ro ­
m otion of V ern er O. H e n ry from cash­
ier to vice president, and of D uane W.
R ing from a ssista n t vice p re sid e n t to
vice president. In addition, H e rb e rt
C. A nderson w as elected auditor.
Mr. H e n ry has been affiliated w ith
th e b a n k since 1921 and Mr. R ing
joined th e b a n k in 1959, com ing from
M inneapolis w h ere he w as em ployed
in th e cred it d e p a rtm e n t of th e N o rth ­
w est B ancorporation.

New Assistant Cashier
W illiam Stokm an has been hired by
th e F a rm e rs N ational B ank of M inne­
sota L ake as a ssista n t cashier, suc­
ceeding David P asser w ho resigned
recently.

w ill take him to all sections of the
state du rin g th e year.

Banker Is Teacher
For Day-Long Session
R obert F rick, vice president, Wayzata State Bank, got a first h and look
a t th e operations of a classroom d u r­
ing th e recen t A m erican E ducation
W eek.
F o r one full day he took over a fifth
grade class and ta u g h t all subjects
norm ally included in a fifth-grader’s
curriculum , except m usic.
T he reg u lar teacher, Mrs. McKowen,
com plim ented Mr. F ric k on correlat-

51

ing his banking experience so w ell
w ith th e subjects taught. Mr. F rick
said it w as an experience he w ill n ever
forget and encouraged o ther b u siness­
m en to get out of th e ir every-day
w orld into com m unity activities.

IMPORTANT NOTICE!
W e w ant to p u b lish new s o f any
officer or d irector ch an ges, in ­
creases in ca p ita l structure, or
o th er im p o rta n t action taken at
you r an nu al m eetin g. Send th is
n ew s at on ce to N o r t h w e s t e r n
B a n k e r , 306 F ifte e n th Street,
D es M oines 9, Iow a.

Five Support LI 1
Five b anks in D ouglas County,
Minn., have joined w ith o th e r M inne­
sota b an k s in n atio n al su p p o rt of 4-H
Club w ork.
The A lexandria S tate B ank, th e
F irs t F a rm e rs N ational B ank in A lex­
andria, th e C itizens S tate B ank of
B randon, th e F irs t S tate B ank of
K ensington, and th e F irs t N ational
B ank of Osakis have m ade co n trib u ­
tions to th e N ational 4-H Club F o u n ­
dation, as p a rt of a n ationw ide fund
raisin g program .

Plans Drive-In, Parking
The A m erican State B ank of Moor­
head, Minn., has p u rch ased th e fo rm er
W eyerh aeser C om pany lum ber y ard
p ro p e rty a t 5th and 1st A venue N orth,
for co n stru ctio n of drive-in facilities
and a p a rk in g lot. The p ro p e ry is a t
th e re a r of th e p re se n t b a n k building.
P.
J. Canton, executive vice p re si­
dent, said co n stru ctio n is to begin in
th e sp rin g and th e b an k plan s a t least
tw o drive-in w indow s and a paved
p ark in g lot to accom m odate 100 to
125 cars.

Two Wahpeton Prom otions
Mrs. Clifford (H ilegarde) M cllw ain
has been prom oted a ssista n t cashier
a t th e W ah p eto n N ational B ank to
fill th e v acancy created b y th e re ­
tire m e n t of M athilda Schreiber. D en­
nis G arad w as appointed au d ito r, th e
position fo rm erly held b y Mrs. Mc­
llw ain.

State K.F.E. Chairman
Cliff Som m er, president, S ecurity
B ank & T ru s t Co., O w atonna, Minn.,
has been re-appointed c h airm an of
th e M innesota R adio F re e E u ro p e
F und. He h as begun an in ten siv e
schedule of sp eaking engagem ents on
behalf of R adio F re e E u ro p e w hich

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B y _________________________

Nort hwest ern Banker, January, 1962


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

52

Minnesota News

Ruildintf P r o je c t R eports
T H E follow ing ann o u n cem en ts w ere

vides th re e p riv ate offices and a d i­
m ade d u rin g recen t w eeks re g a rd ­ re c to rs’ room, besides m aking it pos­
ing constru ctio n or rem odeling plans sible to enlarge th e lobby. O ther im ­
and in stallatio n of new equipm ent:
prov em en ts w ere m ade in th e book­
keeping d ep artm ent, th e entry-w ay
Bemidji—N o rth e rn N ational B ank
and th e filing facilities.
recen tly com pleted in stallatio n of an
electronic tim e-tem p eratu re sign.
Red Wing—Open house w as con­
H utchinson—P lan s w ere announced
ducted recen tly in observance of the
recen tly calling for w o rk to begin
com pletion of a rem odeling program
early n ex t sp rin g on a new building
at th e Goodhue County N ational Bank.
for th e F irs t N ational B ank a t Main
The m ain b anking floor w as en tirely
and T h ird A venue South. The addi­ rem odeled, th e v a u lt w as enlarged,
tion w ill include a drive-in te lle r w in ­ new elevators w ere installed, and
dow and a spacious p a rk in g area.
o th er im provem ents made. A new in ­
P lans are com plete for th e new 52 stallm en t loan d ep artm en t w as added
by 90 foot building. Two houses
and all new fu rn ish in g s w ere in ­
w hich are located a t th e site w ill be
stalled.
rem oved by M arch 1.
Waseca — C ontracts w ere let re ­
Isa n ti—R em odeling and red eco rat­ cen tly for a new F irs t N ational B ank
ing of th e lobby of th e F irs t State
building. The new building w ill cost
B ank has been com pleted. An all­ app ro x im ately $150,000. W ork got u n ­
glass fro n t has been installed and th e
derw ay as soon as co ntracts w ere
lobby has been re-arranged and p a n ­ aw arded. The b an k hopes to be in
eled.
th e new q u arters by n ex t July.
P rin ceto n —More th a n 1,500 persons
attended open house at th e recen tly
Buys Carlos Bank
enlarged and rem odeled q u a rte rs of
th e P rin ceto n S tate B ank. P urch ase
R ay R aderm acher has purchased the
of a building adjoining th e b an k m ade
in te re sts of J. R ussell K losner in the
possible th e en larg em en t th a t p ro ­ Carlos State Bank, Carlos, Minn., and

becam e presid en t of th e bank on De­
cem ber 1. Mr. K losner has purchased
controlling in te re st in th e F irs t N a­
tional B ank of P a rk Falls, Wis.
Mr. R adem acher, 34, farm ed n e a r
Sauk C entre un til he w as 27 years old
and th en en tered th e insurance sales
and m anagem ent field. He still owns
a 520 acre farm n ear Sauk Centre.

Hans N. Dyste
H ans N. Dyste, 75, retire d b anker
and since 1957 a resident of New Ulm,
Minn., died recen tly afte r being in
poor health for about five years.

Maurice M. Gaffney
M aurice M. Gaffney, vice p resid en t
and cashier, State B ank of Belle
Plaine, Minn., died recen tly at a hos­
p ital in R ochester. He had been in
poor health th e p ast six m onths. He
w as 63.
A lifetim e resid en t of Belle Plaine,
Mr. Gaffney joined th e State B ank
w hen he w as 18 y ears old.
In addition to his dedication to b an k ­
ing, Mr. Gaffney w as active in com m u­
n ity affairs and devoted m uch of his
tim e and energy helping to im prove
his hom e town.

Our Service Is at Your Service"
A daily resolution we have kept fo r 66 continu­
ous years to our Correspondents and Friends in
South Dakota, Iowa, Minnesota and N ebraska.

CLIFF ADAMS

STAN EVANS

ED NEWELL

DICK DRAPER

The Live Stock National Bank
SIOUX CITY, IOWA
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
N orthw estern Banker, January, 1962


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

53

Soul li I to kola

NEW S
C. C. LIND
A . S. GULLICKSON

President
Secretary

Aberdeen
Huron

/tpi/ South ita h otu ttan hers M eet
H E South D akota B an k ers A ssoci­ tis B. M ateer, executive vice p resid en t
ation held its first a n n u a l confer­ of th e P ierre N ational Bank, P ierre
ence for C ounty K ey B ankers, ap ­ and also a m em ber of th e A m erican
pointed by P re sid e n t C. C. L ind of Ab­ B ankers A ssociation sub-com m ittee on
erdeen, last m o n th at th e M arvin federal legislation, and M aurice D. Ol­
H u g h itt H otel in H uron. The m eet­ son, a ssistan t vice p resid en t of the
ing w as a w o rkshop discussion on th e N o rth w est Security N ational B ank of
role of th e b a n k e r in b e tte rin g ag ricu l­ Sioux Falls, w ho spoke on th e co-spon­
tu ra l lending, financial m an agem ent sorship of the South D akota B ankers
and credit p ractices in th is basic South A ssociation w ith th e State Ju n io r
D akota in d u stry . Forty-tw o counties C ham ber of Commerce of th e Out­
of th e state w ere rep re se n te d a t th e
stan d in g Young F a rm e r P rogram now
conference.
being carried out th ro u g h o u t th e state.
A.
S. G ullickson, executive secretary
of th e association, w as m o d erato r of 6 0 Years in Banking
J. M. Lloyd, president, A m erican
th e conference. E. T. Savidge, dep u ty
m anager of th e A m erican B an k ers A s­ State B ank, Y ankton, S. D., recently
sociation, New Y ork City, spoke on m ark ed the 60th an n iv ersary of his
basic concepts of th e b a n k e r and th e ban k in g career.
On N ovem ber 18, 1909, Mr. Lloyd
role he should play w ith reg ard to all
a g ricu ltu ra l financial m a tte rs in his left Y ankton H igh School to become
bookkeeper and m essenger for the
individual county.
K enneth B. W ales, executive secre­ F irs t N ational Bank. He has been ac­
ta ry of th e M innesota B ankers A sso­ tive in Y ankton b an king and civic af­
ciation, M inneapolis, outlined for th e fairs since th a t tim e.
assem bly th e role of th e associate
councilm en, w ho are th e c o u n te rp a rt Lake Ancles Bank Approved
The FD IC has g ran ted th e final ap ­
of th e county key b an k ers in South
Dakota. P r o g r a m s w ere described proval for th e establishm ent of the
A ndes State B ank to be opened at
w hich had proved profitable for both
ag ricu ltu re and th e b an k in g fra te r­ Lake A ndes early th is year.
M orris W in ter of A rm our, now p res­
nity.
O ther speak ers on th e pro g ram in ­ ident of th e F irs t State B ank there,
cluded: C. C. Lind, p resid en t of the has m oved his fam ily to Lake Andes
F irs t N ational B ank of A berdeen; C ur­ and w ill be presid en t of the new bank.

T

K E Y CO UN TY B A N K E R S m e e tin g in H u ro n la s t m o n th in ­
clu d ed , fro m le ft, R ichard M ogan, a sst. cash. & m gr., M id lan d
office, O k a to n S ta te B a n k ; W. D. H eupel, v.p. & m gr., Mob rid g e b ra n c h , F i r s t N a tio n a l of A b e rd e e n ; Bob F orsyth,
v.p. & cash., M ansfield S ta te ; Thom as Porter, p re s., S e c u rity
B a n k , W e b ste r. C E N T E R : On th e p ro g ra m w ere, fro m le ft,


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Federal Reserve Bank of St. Louis

R ay Stedronsky, form er Lake A ndes
m ayor and now of A rm our, w ill be
associated w ith Mr. W in ter in th e new
b ank as cashier.
The new b an k w ill be established in
th e old V alley S tate B ank Building. I t
is capitalized a t $130,000, w hich in ­
cludes $60,000 in capital stock, $40,000
in su rp lu s and $30,000 in undivided
profits.
The Lake A ndes office of the Com­
m ercial State B ank of W agner w ill
close at th e opening of th e Andes State
Bank. T his office has served th e com­
m u n ity for th e p ast 19 years.
D irectors of th e new Lake A ndes
b ank are Mr. W inter, D. Z. W inter,
Mr. Stedronsky, T. H. K rell and V. C.
M artin.

Named I.B.A. Director
O. D. H ansen, president, B ank of
U nion County at E lk Point, S. D., has
been re-elected South D akota director
for th e In d ep en d en t B ankers Associa­
tion. He is a p ast presid en t of th e
national association.

Edgemont Remodeling
An extensive rem odeling and re fu r­
nishing program is u n d erw ay a t th e
S outhern H ills Bank, E dgem ont, S. D.
All new fixtures are being installed,
an acoustically conditioned office for
consultation w ith b an k officers is be­
ing added, along w ith a p riv ate booth
for safe deposit box users. In te rio r
arran g em en t also has been changed
and the w alls are being redecorated.
The b an k recen tly com pleted a re n ­
ovation of th e exterior.

Rapid City Change
H ugh A. Caton of R apid City has
joined th e R ushm ore State B ank in
R apid City as an a ssistan t cashier, ac­
cording to W. E. T routm an, president.
Mr. Caton form erly w as R apid City
b ranch m anager for th e Com m ercial
Credit C orporation.

K en neth W ales, exec, secy., M in n e so ta B a n k e rs A sso c ia tio n ;
C. C. Lind, pres., S o u th D a k o ta B a n k e rs A s so c ia tio n ; E. T.
Savid ge, dep. m gr., A .B .A ., N e w Y ork, a n d A. S. G ullickson,
exec, secy., S o u th D a k o ta B a n k e rs A sso c ia tio n . R IG H T : V is it­
in g a re J. A. H ard esty, pres., F i r s t S ta te B a n k , H ig h m o re, and
H. B. Schelle, v.p. & cash, L y m a n C o u n ty B a n k , K e n n eb e c .
Nort hwest ern Banker, January, 1962

54

South Dakota News

New Clark Cashier
M elvin H am re, a ssista n t vice p re si­
d en t at the W illow Lake b ran ch of
the Citizens State B ank of Clark, S. D.,
has been nam ed cashier a t th e m ain
office in Clark. He succeeds C urtis R.
Price, w ho died recen tly of a h e a rt
attack.

1 0 0 at NAB AC Clinic
A bout 100 South D akota b an k ers a t­
tended a Loss P rev en tio n Clinic con­
ducted recen tly in M itchell, S. D., u n ­
d er the sponsorship of th e S o u th east­
e rn and C entral South D akota C onfer­
ences of NABAC.

Moves to Milhank
M erlin Stocking has been nam ed
vice p resid en t and a ssista n t m anager
of th e M ilbank b ran ch of th e F irs t
N ational B ank of A berdeen. He fo r­
m erly w as m anager of th e H ecla
branch.

D irectors of th e N ational B ank of
South D akota announced changes in
m an agem ent personnel effective J a n ­
u a ry 1. Tom S.
H a rk is o n , w ho
has been p resi­
d en t since 1944,
becam e chairm an
of th e b o a rd .
M artin J. Colton,
vice president, is
th e new p r e s i ­
dent, and F ra n k
J. Cinkle, vice
president, becam e
T . S. H A R K I S O N
e x e c u t i v e v ic e
president.
Mr. Colton is a native of G rand
F orks, N. D., and began his banking

New Study Groups
Several new A.I.B. Study G roups
have been form ed th ro u g h o u t the
state. T hey are:
Brookings — “Com m ercial L aw ,”
chairm an, J. W. G arrity, F irs t N ation­
al Bank, Brookings.
M itchell—Palace City Group, “P rin ­
cipals of B ank O perations” and “A gri­
c u ltu ral C redit,” chairm an, Ronald R.
Jen k in s, Com m ercial T ru st and Sav­
ings Bank.
Lemmon—State Line Group, “Com­
m ercial L aw ,” chairm an, Dale Rogers,
F irst N ational Bank, Lem m on.

S io u x F u ll s
H E N o rth w est S ecurity N ational
B ank recen tly conducted a “T eller
C ontest” in w hich custom ers w ere
asked to grade tellers on th e ir efficien­
cy, courtesy and friendliness. W in n er
w as Alverna An­
dersen. Mrs. A n­
dersen, an em ­
ployee for over 10
years, is a teller
a t t h e b a n k ’s
drive-in window.
She received $50.
Norma Joyce, a
com m ercial teller,
w on second prize
of $30, and Cathy
A. A N D E R S E N
Lubeck, a savings
teller, w on th ird place for $20. A
special achievem ent aw ard of $20 w en t
to Hilda Berreau, also a drive-in teller.
* * *
Frank E. Duffy, vice p resid en t and
cashier, U nion Savings Bank, has been
nam ed to th e board of th e T ri-States
M utual In su ran ce Company, L uverne,
Minn.

T

Nort hwest
ern Banker, January, 7962

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Federal Reserve Bank of St. Louis

president. He served as presid en t of
th e South D akota B ankers A ssociation
in 1959 and has held various assign­
m ents in th e A.B.A.
O ther action tak en by th e board in ­
cluded th e election of V ernell O. Holte r and R obert K. M iller to vice p resi­
dent and a ssistan t vice president, re ­
spectively, of the b an k ’s b ranch in
V erm illion. Mr. H olter succeeds Jo h n
Sanger w ho re tire s as m anager of the
V erm illion branch.
sfc

ijc

P lans for an eight-story bank and
office building to be ow ned by th e N a­
tional B ank of South D akota w ere an ­
nounced last m onth. E xpected cost of
th e building is to be n ear $2 m illion.
Two stories and th e basem ent will
be occupied by the b ank and six floors
w ill be used for ren tal offices. It w ill
be located at Main A venue and
E ig h th S treet in Sioux Falls.
The new building w ill have a fro n t­
age of 150 feet on Main and 90 feet on
E ighth. Drive-in facilities will be pro­
vided along w ith p ark in g for 100 cars.

IMPORTANT NOTICE!
M. J . C O L T O N

F . J. C IN K L E

career in 1933. He came to the N a­
tional B ank of South D akota as vice
p resid en t in 1959, afte r 13 years as a
n atio n al b an k exam iner.
Mr. C inkle began his banking career
in Iowa. He becam e cashier of the
N ational B ank of South D akota in
1937 and advanced to vice p resid en t
in 1945.
Mr. H arkison began his banking
career in 1915 and joined the N ational
B ank of South D akota in 1937 as vice

SOUTH DAKOTA
CALENDAR
January 24, SDBA Installment Credit
Committee at 10:30 a.m., and
Legislative Committee at 2:30
p.m., Community Room, Pierre
National Bank, Pierre.
February 14, SDBA Executive Coun­
cil at 3 p.m., First National Bank
of Aberdeen.
February 15, Junior Employees Con­
ference, Alonzo Ward Hotel,
Aberdeen.
March 25-28, Legislative Trip to Wash­
ington, D. C.
,
April 11-12, Agricultural Conference,
Community Room, City Hall,
Pierre.
May 17-19, SDBA Annual Convention,
Sheraton - Cataract Hotel, Sioux
Falls.
June 13, Installment Credit Confer­
ence, Masonic Temple Building,
Mitchell.
September 24-28, 1962 Annual Group
Meetings.
1963
May 16-18. SDBA Annual Convention,
Watertown.

W e w ant to p u b lish new s o f any
officer or d irector ch an ges, in ­
creases in ca p ita l stru cture, or
o th er im p ortan t action taken at
you r an nu al m eetin g . Send this
n ew s at on ce to N o r t h w e s t e r n
B a n k e r , 306 F ifte en th Street,
D es M oines 9, Iow a.

Surplus Increased
S urplus account of the F arm ers and
M erchants B ank of W atertow n has
been increased by $15,000 to $250,000,
announced W. C. Talen, president.
The increase w as tra n sfe rre d from
undivided profits. E a rlie r this year
capital had also been increased to
$250,000 by a $30,000 stock dividend.
Total capital accounts, including re­
serves, now exceed $850,000, and total
assets exceed $10 million.

Joins Mitchell Staff
Jam es S tew art of Chanute, Mont.,
has been n a m e d
c a s h i e r a t th e
Com m ercial T ru st
and
Savings
Bank, Mitchell, S.
D., according to
H. R. K i b b e e ,
president.
Mr. S tew art succeeds Robert
K napp, w ho re ­
s ig n e d s e v e r a l
J. W . S T E W A R T
m o n t h s a g o to
join an Iow a bank. Mr. S tew art comes
to M itchell afte r 10 y ears w ith th e
FDIC as an exam iner.

oo

New Mandan President
R. M. “Bob” Leslie has been elected
presid en t of th e F irs t N ational B ank
of M andan, N. D., it w as announced by
J. R ay M adsen, chairm an.
Mr. Leslie has been vice p resid en t
of th e F irst N ational B ank of Kalispell, Mont., for th e p ast 15 years.

>01*1li Dakota

NEW S
GARY L. LERBERG
BILL DANER

President
Secretary

Parshall

9 New SBA Directors

Bismarck

Conference Planned
The N orth D akota B an k ers A ssocia­
tio n ’s education conference w ill be
conducted at th e U n iv ersity of N orth
D akota a t G rand F orks, F e b ru a ry 21
th ro u g h 23.
H erb e rt J. Stennes, a ssista n t cash ­
ier, F irs t N ational B ank, G rand F orks,
is conference director, and H u g h R odg­
ers, cashier, V alley B ank of G rand
F orks, is ch airm an of th e educational
conference.
E n te rta in m e n t high lig h t of th e con­
ference w ill be a hockey gam e be­
tw een th e U n iv ersity of N o rth D akota
and th e U n iv ersity of M innesota F r i­
day night, F e b ru a ry 23.

Conducts W orkshops
N orth D akota B an k ers A ssociation
groups c o n d u c t e d public relatio n s
w orksho p s last m onth. The S outheast
G roup m et at Fargo, th e N o rth east
G roup a t G rand F orks, th e N o rth w est
G roup at Minot, and th e S outhw est
Group a t B ism arck.

N ine new m em bers w ill serve on
The Independent B ankers A ssocia­
tio n ’s executive council for th e n ex t
th ree y ears as a re su lt of re tu rn s from
3,920 of th e IB A ’s 5,936 m em ber banks
IMPORTANT NOTICE!
in a recen t m ail election.
W e w ant to p u b lish new s of any
One b an k er from each of the 39
officer or d irector ch an ges, in ­
states w here th e IBA has m em ber
creases in ca p ita l structure, or
banks w ill serve on the council. The
oth er im p o rta n t a ction tak en at
nine new m em bers are from Florida,
you r an nu al m eetin g . Send th is
Illinois, Indiana, M innesota, M ontana,
n ew s at on ce to N O R T H W E S T E R N
New Mexico, Oklahoma, P ennsylvania
B a n k e r , 306 F ifte en th Street,
and W yom ing.
D es M oines 9, Iow a.
Those from u p p er m idw est states
are: M innesota—Russell H anson, vice
president, Sw ift County Bank, Benson;
Heads State Line Group
L.
Claude M ensing, executive vice M ontana—O. M. Jorgenson, chairm an,
president, F irs t N ational B ank in H et­ Security T ru st & Savings Bank, B ill­
tinger, N. D., w as nam ed p resid en t of ings, and W yom ing—R obert L. F erril,
th e S tate L ine B ankers A ssociation at cashier, W yom ing B ank & T ru st Com­
pany, Buffalo.
a recen t m eeting in Lem m on, S. D.

cashier in 1936. A staff p a rty w as
held in his honor.

Plan Washington Trip

Doyour

The N o rth D akota B ankers Associa­
tio n ’s legislative trip to W ashington,
D. C., w ill be held d u rin g th e w eek of
A pril 8. C onferences w ith legislators
have been arran g ed , along w ith m eet­
ings w ith tre a s u ry officers, th e com p­
tro ller, th e board of governors of th e
F ed eral R eserve and th e FDTC.

h a v e q u e stio n s a b o u t

TAXATION...
CA N A D A ?
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by Canada’s First Bank, includes a survey in
laymen’s language of the major Canadian taxes
affecting your clients’ business or personal in­
terests in Canada. These include Federal and
Provincial taxes, and special subsidiaries, invest­
ment companies and oil, ilatural gas and minerals.
Your Canadian-minded clients will find it "must”
reading.
To obtain your copy, write on your letterhead to
our nearest U. S. office, or to the Business Devel­
opment Department, Head Office.

Capital Increased
Common capital stock of th e F irs t
N ational B ank in D rake, N. D., has
been increased from $50,000 to $100,000
by a stock dividend.

Enderlin Open House
T he Peoples and E n d e rlin State
Bank, E n d erlin , N. D., celebrated its
69th an n iv e rsa ry last m o n th w ith an
open house w hich also gave th e public
an o p p o rtu n ity to view th e recen tly
rem odeled b ank building.

B

a n k

o f

M

o n t r e a l

d 'pcrdt

(?oeui£- ta - (?o<z4t

B R A N C H E S IN A L L TEN P R O V IN C E S

25th Anniversary
O. V. S tenehjem , cash ier and vice
president, recen tly celebrated his 25th
an n iv ersa ry w ith th e F irs t In te rn a ­
tional B ank of W atfo rd City, N. D. He
began his career w ith th e b an k as

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

D is tr ic t H e a d q u a r t e r s :
Halifax, Toronto, Winnipeg, Calgary, Vancouver

NEW YORK: Two Wall St. •

SAN FRANCISCO: 333 California St.

C H IC A G O : S p e cia l R e p re se n ta tiv e 's O ffice, 141 W est Ja c k so n B lv d .

'Z tc a d O ^ccc: 'W taH treai
850 BRANCHES IN CANADA, U.S., GREAT BRITAIN AND EUROPE

•

RESOURCES EXCEED 53,525.000,000

Nort hwest ern Banker, January, 1962

56

C o lo ra d o -W y o m in g N e w s
A. E. FORDHAM , Gunnison
"resident
Colorado Bankers Assn.

A . E. KENDIG, W heatland
President
Wyoming Bankers Assn.

Heads Charity
Elw ood M. Brooks, ch airm an of th e
board, C entral B an k & T ru st Com­
pany, D enver, has been nam ed p re si­
d en t of th e N ational Society for C rip­
pled C hildren and A dults, Inc. H e has
been active in th e w o rk of th e Society
for 30 years.

Declares Dividend
D irectors of th e Colorado N ational
Bank, D enver, voted recen tly to rec­
om m end approval of a proposal to de­
clare a stock dividend of 12% p er cent,
or one sh are for ev ery eight sh ares
now outstanding.
A ction on th e proposal w ill be tak en
a t th e an n u al m eeting J a n u a ry 16.
The board also declared a reg u lar
q u a rte rly dividend of 65 cents p er
share, and auth o rized tra n sfe r of $125,000 from undivided profits to surplus,
b rin g in g th e su rp lu s account to $5,625,000.

Louisville, Lafayette
Changes Announced

been responsible for th e re tu rn of
m ore th a n $55,000 to its ow ners du rin g
th e p ast 17 years. E ach new m em ber
receives an H onor Club pin and a $7.50
savings account.

Receives Honors
Don Carney, president, F irs t N ation­
al B ank of Englew ood, Colo., recently
received th e State C ham ber of Com­
m erce continuous service plaque hon­
oring th e b a n k ’s 50th an n iv ersary and
m em bership in th e State C ham ber o r­
ganization.

Adds Trust Department
The Home State Bank, Loveland,
Colo., has announced th e addition of
a tr u s t d ep artm ent. T ru st officers w ill
be announced in th e n ear future, ac­
cording to H arold Pickier, president.

Joins Denver Bank
L ester W. H all has been nam ed vice
p resid en t for real estate at th e B ank
of D enver. F ro m 1951 to 1958 he w as
executive vice p resid en t of th e E a st­
m an Oil W ell Survey Company.

R eorganization and nam in g of new
officers for th e L ouisville and L afay­ Clearing House Election
A. F. E sgan, president, State Bank
ette ban k s have been announced fol­
low ing th e re tire m e n t of Louis A. Mil­ of W iley, has been elected presid en t of
ler from active m an agem ent as an offi­ th e A rk an sas V alley Clearing H ouse
cer and d irecto r of those banks.
A ssociation. A. R. Sm ith, assistan t
G.
R. H enning, president, F irs t State cashier, R ocky F o rd N ational Bank,
B ank of Louisville, announced th e ap ­ w as nam ed vice president, and R obert
p o in tm en t of P aul N. D awson as d irec­ H. Jones, vice president, Colorado
tor, filling th e v acancy left by Mr. Mil­ B ank & T ru st Company, La Ju n ta , is
ler.
Mr. D aw son is executive vice secretary -treasurer.
p resid en t of th e F irs t N ational B ank
of Boulder.
Controls Three Banks
F irs t Colorado B ankshares, Inc., a
Roy S. “H am ” R oberts w as elected
presid en t of th e B ank of L afayette. new ly form ed holding com pany, has
On Ju ly 1, 1961, J. F re d T hone w as p u rch ased control of th ree suburban
appointed vice p resid en t and cashier D enver banks: th e F irs t N ational
of both b anks to assum e active m an ­
IMPORTANT NOTICE!
agem ent and responsibilities.

Five in Honor Club
F ive new m em bers have been added
to th e R o c k y M ountain A etcs-C entral
N ational B ank & T ru st C om pany of
D enver H onor Club for re tu rn in g a to ­
tal of $75 of lost m oney to ow ners.
The 1,421 m em bers of th e club have
Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

W e w ant to p u b lish new s o f any
officer or d irector chan ges, in ­
creases in ca p ita l structure, or
oth er im p o rta n t a ction tak en at
you r an nu al m eetin g . Send th is
n ew s at on ce to N o r t h w e s t e r n
B a n k e r , 306 F ifte en th Street,
D es M oines 9, Iow a.

B ank of Englew ood, th e U n iv ersity
H ills B ank and th e Lakeside N ational
Bank.
The new b ank holding com pany is
th e first to be form ed in Colorado. In ­
co rporators are J. K ernan W eckbaugh,
Don Carney, Carl A. N orgren, B u rr
Betts, M yron N eu steter and Aksel
Nielsen. Mr. W eckbaugh is president,
Mr. C arney is vice presid en t and tre a s­
u rer, and Sidney K ing is secretary.

Board Approves One,
Denies Two Charters
The Colorado B anking B oard has ap­
proved a c h a rte r for one new b ank
and denied tw o o ther applications.
A pproved w as th e application for
the Golden State B ank in Golden, Colo.
D enied w ere applications for th e p ro ­
posed P a rk H ill S tate B ank in Denver,
and th e B ank of Chaffee County in
Salida.

Adds Second Story
The N ational City B ank in D enver
has sta rte d construction of a second
sto ry to provide space for th e b a n k ’s
installm en t loan d ep artm ent, accord­
ing to Ross L. H udson, president.

Pays Cash Dividend
The U nion N ational B ank of D enver
declared its first cash dividend, $1 a
share, recently. The b an k recen tly
paid a 100 p er cent stock dividend.

Gives Trading Stamps
The F irs t N ational B ank in Golden,
Colo., recen tly gave aw ay 250,000 tra d ­
ing stam ps in a special contest. Each
person th a t reg istered for th e d raw ­
ing w as given 50 stam ps. The first
of 150 aw ards w as 50,000 stam ps. Sec­
ond and th ird prizes w ere 25,000 and
15,000 stam ps r e s p e c t i v e l y . O ther
prizes of from 500 to 5,000 stam ps also
w ere aw arded.

Mountain States Building
C onstruction to m ore th a n double
th e size of th e M ountain States B ank
in D enver is underw ay, W illiam G.
Griffith, president, announced recen t­
ly*
New construction w ill add 14,000
square feet of floor space to th e exist­
ing 9,000 square feet. The building
w ill have tw o floors above ground and
one below ground level.
E xpanded facilities w ill offer th ree
w alk-up w indow s, a v a u lt and safety
deposit area tw ice its p resen t size, and
a custom er w aitin g area and lounge.
The in stallm en t loan d ep artm en t w ill
be m oved to the stre e t level. Teller
w indow s w il be increased to 13 and
th e lobby w ill be expanded.

Wyoming News

W elborn Honored

Named I.B.A. Director

Jo h n W elborn, executive vice p re si­
dent, F irs t N ational B ank, D enver, re ­
cently w as featu red in a special article
in th e D en ver Post. T he article de­
scribed Mr. W elb o rn ’s hobby of raisin g
orchids. Included w ere several full
color p ictu res show ing Mr. W elborn at
w ork in his greenhouse at his hom e.

R obert I. F erril, cashier, W yom ing
B ank & T ru st Company, Buffalo, has
been elected W yom ing director of the
In d ep en d en t B ankers A ssociation. Mr.
F e rril replaces W. R obert Dubois of
C heyenne, and w ill serve a three-year
term .

On Casper Board
Salida Open House
B etw een 2,500 and 3,000 p ersons a t­
tended an open house a t th e F irs t N a­
tional B ank in Salida, Colo., recen tly
celebratin g th e com pletion of an ex­
tensive rem odeling program .
A m ong th e m an y changes are a new
in stallm en t loan d ep artm en t, a relo­
cated officers’ area, a new drive-in fa­
cility and an a ir conditioning system .
New electronic bookkeeping equip­
m en t w as in stalled sh o rtly a fte r th e
open house.

W y o m in g

N e w s

Offers New Facilities
The F irs t N ational B ank of Kemm erer, Wyo., has announced tw o new
cu stom er services—a n ig h t depository
and a w alk-up w indow . The new fa­
cilities are located on th e south side
of th e bank.

W illiam H. Brow n, pro m in en t Cas­
p er atto rn ey, has been nam ed to the
board of th e W yom ing N ational Bank.
He fills a vacancy created by the
d eath of H arold H. Healy.
Mr. B row n’s firm has been counsel
for th e b an k in recen t years.

Two Contest Winners
Two W yom ing b an k em ployees have
been nam ed as w in n ers in the A m eri­
c a n E x p r e s s C om pany’s “B ankers
A w eigh” contest. M arion Stanton, es­
crow teller a t th e F irs t N ational B ank
of Casper, w on seventh prize, and Mrs.
D orothy Bengston, a bookkeeper at
th e A m erican N ational B ank at Chey­
enne, w on sixth prize.

Award Riverton Contract
C ontracts w ere aw arded last m onth
for th e new A m erican N ational B ank
building in R iverton, Wyo.

57

The 5,250 square foot building w ill
be of one sto ry m asonry construction.
Specifications call for a sm all v esti­
bule on th e m ain stre e t en tran ce w ith
doors opening tow ard a large fireplace
w hich w ill be on th e south end of th e
lobby. A conference room on th e
southw est corner of th e building w ill
be available for public use. Two driveup w indow s w ill be located in th e
rear.

Joins Lander Staff
Floyd H arm on, a ssistan t cashier of
th e F irs t N ational B ank of Laram ie,
Wyo., has been elected a ssistan t cash­
ier a t th e F irs t N ational B ank of
L ander.
Mr. H arm on had joined th e F irst
N ational B ank of L aram ie in 1955,
after 10 y ears in m ilitary service. At
th a t tim e R obert F inkbiner, one of
the new ow ners and presid en t of th e
F irs t N ational B ank of L ander, headed
th e L aram ie bank.

On Riverton Board
Dr. B ern ard D. Stack, w idely know n
physician and businessm an, has been
elected to th e board of th e F irs t N a­
tional B ank of R iverton. He fills th e
vacancy created by th e death of Rob­
e rt Grieve of Casper.

C

O

-

Central Park . . . 15th & Arapahoe . . . Denver 17, Colo.

MEMBER: FEDERAL DEPOSIT INSURANCE CORPORATION • FEDERAL RESERVE SYSTEM


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

Nort hwest ern Banker, January,

1962

THE ROYAL BANK OF CANADA
Head Office, Montreal
W.

E

arle

M

cL a u g h l in

President

A. F.

M

ayne

Executive Vice-President

C. B.

N

R. W.

eapole

General Manager

Sh

a n n o n

Associate General Manager
( international

division )

C ondensed A nnual Statem ent
30th November, 1961
ASSETS

1960

1961

Cash on hand and due from banks (including items in transit)
Government of Canada and provincial government securities,
at amortized v a l u e ........................................................................
Other securities, not exceeding market v a l u e .........................
Call loans, fully secured .................................................................
Total quick a s s e t s ............................................
Other loans and d isc o u n ts.............................................................
Mortgages and hypothecs insured under N .H .A .......................
Bank p rem ise s.....................................................................................
Liabilities of customers under acceptances, guarantees and
letters of c r e d it ..............................................................................
Other assets .......................................................................................

$ 685,613,515

$ 583,133,005

1,027,327,932
711,717,878
373,263,919
$2,797,923,244
1,696,733,540
279,814,016
54,031,550

836,842,656
524,049,613
316,818,517
$2,260,843,791
1,597,496,232
288,810,202
51,133,393

118,754,143
7,353,763
$4,954,610,256

92,633,136
5,905,496
$4,296,822,250

$4,501,789,157
118,754,143
27.682,748
$4,648,226,048

$3,884,134,258
92,633,136
28,191,979
$4,004,959,373

LIABILITIES
Deposits ...............................................................................................
Acceptances, guarantees andletters of c r e d it............................
Other lia b ilitie s..................................................................................
Total liabilities to the p u b lic ...........................
Capital paid u p ......................................................... $ 66,528,000
Rest A c c o u n t............................................................. 238,071,200
Undivided profits .....................................................
1,785,008
'

306,384,208
$4,954,610,256

$ 66,433,759
223,774,341
1.654,777

291,862,877
$4,296,822,250

O v e r 1,000 B r a n c h e s
I N C A N A D A , T H E C A R IB B E A N A REA A N D S O U T H A M E R IC A . O F F IC E S I N N E W Y O R K , L O N D O N A N D P A R IS .
R E P R E S E N T A T IV E S I N C H IC A G O , D A L L A S , LOS A N G E L E S , H O N G K O N G A N D H A V A N A .
C O R R E S P O N D E N T S T H E W O R L D OVER.

London Branches—6 Lothbury, E. C. 2 • 2 Cockspur st., S. W. l
Auxiliary in France—
N E W YORK AGENCY

68 William Street

Nort hwest ern Banker, Ja n u a ry , J962


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

th e

royal

ba n k

of

canada

(

fr a n c e

)—

Paris

H. M. G R IND ELL, Chief Agent
R- M. CATTELL, J. F. SM ITH, Agents

New Banking Service

On Kalispell Board
F red 0. B roeder, Jr., has been
nam ed to th e board of th e C onrad N a­
tional B ank of K alispell, Mont. He
fills a vacancy created by th e recen t
death of L aw rence B ruyer.
Mr. B roeder en tered th e lum ber
business w ith his ow n tie mill in 1941
and has since established B roeder
B ro th ers L u m b er Company. He has
served five sessions in th e M ontana
L egislature. C u rren tly he is serving
as a directo r of th e In te rm o u n ta in
Logging Conference.

New Glasgow President
D irectors of th e F irs t N ational Bank,
Glasgow, Mont., have announced the
ap p o in tm en t of L y n n D. Grobel as
p resid en t and W alter Cornw ell as new
director.
Mr. Grobel replaces F re d H einecke,
w ho w as seriously in ju red w hile h o rse­
back rid in g last year. B efore com ing
to Glasgow n e a rly th re e y ears ago,
Mr. Grobel w as a n atio nal b an k exam ­
in er assigned to th e B illings and H el­
ena offices.
Mr. Cornwell, th e new director, has
been m anaging th e Cornw ell ranch
w est of Glasgow and is a m em ber of
th e executive board of th e M ontana
Stockgrow ers A ssociation.

Billings Grand Opening
G rand opening of B illings’ fifth and
new est bank, th e V alley State Bank,
w as held recently.
The Valley State opened in tem po­
ra ry q u a rte rs a y ear ago. A. E. Omdahl, president, re p o rts th e b an k now
has m ore th a n 1,200 custom ers.

Leave Great Falls Bank
Jo h n R. C urry, vice p resid en t and
tru s t officer of th e M ontana Bank,
G reat Falls, since 1948, has resigned
from th e b an k and has re tu rn e d to his
form er hom e in P ortland, Ore.
Mr. C urry served as tru s t officer for
th e F irs t N ational B ank in P o rtlan d
before joining th e M ontana bank. He
stated th a t he has no p a rtic u la r plans
for th e fu tu re o th er th a n to continue
research on estate laws.

Installs “Tyme” Bells
The F irs t N ational B ank of H avre,

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Federal Reserve Bank of St. Louis

Mont., recen tly com pleted installation
of a Schulm erich “T ym e-Stryke” bells
in stru m en t, bu ilt by Schulm erich C ar­
illons, Inc., Sellersville, Pa. The bells
w ill sound th e w ell-know n W estm in­
ste r peal and ho u r strik e daily from 9
a.m. to 9 p.m. from th e roof of the
F irs t N ational building.

Hinsdale Open House
Several h u n d red c u s t o m e r s and
frien d s of th e F irs t N ational B ank of
H insdale, Mont., attended an open
house recen tly to view the extensively
rem odeled q u arters.
The open house also m arked com ple­
tion of 45 y ears of service.

IMPORTANT NOTICE!
W e w ant to p u b lish new s o f any
officer or d irector ch an ges, in ­
creases in ca p ita l structure, or
oth er im p o rta n t action taken at
you r an nu al m eetin g . Send th is
new s at on ce to N o r t h w e s t e r n
B a n k e r , 306 F ifte en th S treet,
D es M oines 9, Iow a.

D of M Shows Big Gains
New highs in alm ost every phase of
its operations are rep o rted in the
B ank of M o ntreal’s 144th an n u al state­
m en t for th e year ended October 31,
w ith assets increased 13.32 p er cent
over 1960 to $3,950 million, and w ith
loans up 9.09 p er cent to a record level
of $1,934 m illion.
N et earn ings w ere $14,578,817, up 2.5
p er cent over 1960. T his rep resen ts
$2.40 p er share, com pared w ith $2.34
a y ear ago. The b a n k ’s tax bill is
show n a t $18,043,791, nearly $700,000
m ore th a n in 1960.
G row th of th e b a n k ’s resources to a
figure ju st u nder $4 billion is the o ut­
stan d in g featu re of th e report. De­
posits of all kinds increased 13.94 per
cent d u rin g th e year to a record $3,647 m illion, from $3,200 m illion in 1960.
The to tal loans figure, $161 m illion
above th e 1960 am ount, is th e highest
in h istory, w ith th e key e n try of “com ­
m ercial and o th er loans” at $1,529 m il­
lion. N.H.A. M ortgage loans and call
loans are show n at $231 m illion and
$173 m illion respectively.

A new b anking service especially
designed to b rin g financial assistance
to d en tists and doctors w as announced
recen tly by Jam es W. A shton, p resi­
dent of th e Republic N ational B ank of
Dallas.
U nder the new plan, Republic w ill
(1) extend A ssistance P rogram funds
for cost of equipm ent or w orking ex­
penses up to seven years; (2) aid in
establishing adequate bookkeeping
and accounting system s; and (3) assist
den tists and physicians in such m at­
ters as estate planning, in v estm en t
m anagem ent, and financial counsel.

Insurance Firms to Merge
The boards of directors of th e St.
P aul F ire and M arine In su ran ce Com­
pany and the B irm ingham F ire and
C asualty Com pany have approved a
proposal to m erge w ith th e St. Paul
Com pany to become th e surviving cor­
poration. T his announcem ent w as
m ade by A. B. Jackson, p resid en t of St.
P aul F ire and M arine In su ran ce Com­
pany, and H. K elly Seibels, president,
of B irm ingham F ire and C asualty
Company.
It is contem plated th a t Mr. Seibels
w ill be elected a resid en t secretary of
the St. P aul in B irm ingham and th a t
all em ployees of th e A labam a Com­
pany w ill become new em ployees of
St. Paul.
As of D ecem ber 31, 1960, B irm ing­
ham F ire and C asualty Com pany had
assets of 86,742,291.84 and w rote $2,608,237.00 in prem ium s du rin g 1960.
St. P aul F ire and M arine Insu ran ce
Com pany had assets of $369,960,392 on
Decem ber 31, 1960 and, together w ith
St. P aul M ercury In su ran ce Company,
had w ritte n prem ium s of $173,223,314.
It w as hoped th a t the proposal
w ould become effective beginning w ith
th e new year.

Diebold Earnings Are Up
R aym ond Koontz, presid en t of Die­
bold, Inc., rep o rted to stockholders
last m onth th a t com pany earnings for
th e first nine m onths of 1961 w ere $1,476,665 afte r provision for federal and
C anadian incom e taxes. N et earnings
for th e com parable period of 1960 w ere
$1,332,107.
Common share earnings for the
period w ere $2.04 in 1961 and $1.84 for
1960. A fter pay m en t of th e usual 15
cents dividend q u arterly , a five per
cent stock dividend w as declared re ­
cently and w ill be paid J a n u a ry 15,
1962.
Sales incom e for the first nine
m onths totaled $10,189,600, a gain of
m ore th a n $438,000 over the sam e
period of 1960.
Nort hwest ern Banker, January, 1962

60

Cattle Loans Start in the Feedlot with U. S.
When you’re talking cattle loans, you want to talk with
a city correspondent who knows his way around a feedlot.
The men from the U. S. know cattle, feeding, and financing.
They can work with you in developing good financing
programs that are tailored to fit the needs of your cattlefeeder customers. Or they can handle many cattle par­
ticipation loans over the phone. Call the U. S. National,
341-8765, Omaha, for immediate action.
M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n

Norf hwest ern Banker, January, 1962


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

61

W ilber Banks Merge
The m erg er of th e Saline State B ank
and th e W ilber State Bank, both in
W ilber, Neb., w as com pleted recently
and both banks now operate as th e
Saline State B ank of W ilber. Records
and files have been m oved from th e
W ilber S tate B ank to th e Saline State
Bank. The Saline State also purchased
th e building adjoining it on th e w est
and w ill rem odel it as soon as it is
vacated.

Nebraska

NEW S
B. D. BERKHEIMER
HARRIS V. OSTERBERG

President
Secretary

Gordon
Omaha

Gives 10ates
ATES for th re e im p o rta n t activ i­
ties of th e N ebraska B an k ers A s­
sociation w ere revealed last m o n th by
B. D. B erkheim er, NBA p re sid e n t and
presid en t of th e F irs t N ational B ank,
Gordon. T hey are th e bien n ial asso­
ciation sponsored trip to W ashington,
D. C., th e an n u al group m eetings, and
th e NBA P re sid e n t’s Golf T ournam ent.

D

W ashington V isit
The W ash in g to n trip w ill s ta rt w hen
p articip a tin g b a n k ers board tw o spe­
cial P ullm an cars leaving O m aha Sat­
u rd a y night, F e b ru a ry 17. T hey w ill
a rriv e in W ash in g to n M onday m o rn ­
ing, F e b ru a ry 19, for a series of m eet­
ings w ith b an k in g officials in th e fed­
eral governm ent, as w ell as personal
v isits w ith C ongressm en from N eb ras­
ka. A n ex tra day w ill be allotted for
those w ishing to do sight-seeing. The
re tu rn tra in w ill leave W ash in g to n the
aftern o o n of F e b ru a ry 22, a rriv in g in
O m aha th e evening of F e b ru a ry 23.
The trip is open to m en only and a
lim ited n u m b er of reserv atio n s are
available.
Group M eetings
The 1962 group m eetings w ill once
again be conducted d u rin g one week,
to avoid o verlapping into M ay and to
stay aw ay from activ ities a t th e first
and last of th e m onth, w hich are busy
days in N ebraska banks. G roup m eet­
ing dates have th erefo re been set as
follows:
A pril 23—N orfolk, G roup 3.
A pril 23—F rem o n t, G roup 2.
A pril 24—Lincoln, G roup 1.
A pril 25—K earney, G roup 5.
A pril 26—A lliance, G roup 6.
A pril 27—McCook, G roup 4.
T here is a possibility th a t special
group tra n sp o rta tio n for associate
m em bers w ill be m ade available. T his
w ill be discussed b y th e N eb rask a Cor­
resp o n d en t B an k Club early in J a n u ­
ary, in o rd er th a t out-of-state b a n k ers
can m ake necessary a rra n g e m en ts if
th is proposal is approved.
Golf Tourney
T he P re sid e n t’s Golf T ourn am en t,
in au g u ra te d last y e a r by im m ediate

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Federal Reserve Bank of St. Louis

fo r
P ast P resid en t M inor P. Baird, Supe­
rior, becam e such a favorite th a t it
w ill be held again th is year on May
16, 1962, in G rand Island. It is ex­
pected th a t about 100 N ebraska b an k ­
ers w ill particip ate in the one-day
event.

IMPORTANT NOTICE !
W e w ant to p u b lish new s o f any
officer or d irector ch an ges, in ­
creases in ca p ita l structure, or
oth er im p o rta n t action taken at
you r an n u al m eetin g . Send th is
n ew s at on ce to N o r t h w e s t e r n
B a n k e r , 306 F ifteen th Street,
D es M oines 9, Iow a.

Ben P. Schomer
Ben P. Schom er, form er presid en t of
th e F a rm e rs State B ank in M illard,
Neb., died last m onth at a d au g h ter’s
hom e in M illard. He w as 78.
Mr. Schom er w as one of th e found­
ers of th e b an k and w as on its board
from th e tim e of its organization in
1916 until the tim e of his death. He
w as vice presid en t for 18 y ears and
p resid en t 17 years.

R em odeling Completed
R em odeling has been com pleted at
th e F a rm e rs and M erchants State
B ank in Bloomfield, Neb. F o r th e p ast
tw o m onths business had been con­
ducted a t th e re a r of th e building
w hile rem odeling w as u n d er way.

Amiel J, Hervert
Heads Local Chamber
H en ry D. K osm an, president, Scottsbluff N ational Bank, Scottsbluff, Neb.,
has been elected p resid en t of the
Scottsbluff Cham ber of Commerce. Mr.
K osm an is a p ast presid en t of the
N ebraska B ankers A ssociation.

A m iel J. H erv ert, presid en t of The
R avenna Bank, R avenna, Neb., for 25
years, died suddenly last m onth at his
hom e of a h e a rt attack.
Mr. H e rv e rt had been associated
w ith th e b ank since its inception in
1932 and w as elected presid en t in 1936.
He w as 77 y ears old.

1010th A noi versar if Ê0isplay

9 0 th A N N IV E R S A R Y c e le b ra tio n a t th e F re m o n t N a tio n a l B a n k , F re m o n t, N eb.,
f e a tu r e d th is u n iq u e e x h ib it. T h o m as J . M illik e n , v ice p re sid e n t, is show n g iv in g a
final check to a liv in g room of th e 1871 e ra w h ich w as e re c te d in th e b a n k lobby.
A u th e n tic sc e n ery , f u r n itu r e , fix tu re s an d a p p o in tm e n ts b ro u g h t th e scene to life .
C u sto m ers v iew ed th e d isp la y d u rin g th e b a n k 's w eek-long open house c o m m e m o ra tin g
th e fo u n d in g of th e b a n k .
Nort hwest ern Banker, January, 1962

62

MODERN auto-bank facility w ill
be co n stru cted a t th e south w est
corner of 24th and L S treets by the
Stock Yards National Bank, it w as a n ­
nounced last m o n th by A. J. Hallas,
president.
The anno u n cem en t followed a m eet­
ing of th e board of d irecto rs of th e
b ank w hen th e board m em bers ap ­
proved a long-term lease from Mrs. H.
B. B ergquist and th e Sw anson B uild­
ing C orporation. P re se n t buildings on
the site w ill be razed and a com plete
new building w ill be constructed.
C onstruction w ill s ta rt as soon as
p resen t leases expire. Mr. H allas said
plans for th e stru c tu re are not yet
com pleted by th e architect.
The m ain ban k in g q u a rte rs w ill re ­
m ain a t th e p re se n t location in th e
L ivestock E xchange Building.
* * *
H. Melvin Moore, 74, w ho w as tr a n ­
sit d ep artm en t m anager at th e Omaha
N ational B ank u n til re tirin g four

A

y ears ago, died last m onth.
* =i= *
Don R. Ostrand, vice p resid en t of
th e F irs t N ational B ank of Omaha, is
th e g en eral chairm an of th e Omaha
H earin g School F u n d Drive.

* * *

Charles H. Veber, re tire d vice p resi­
den t of th e F irs t N ational B ank of
Omaha, Neb., died recently at E scon­
di do, Calif., fol­
low ing a brief ill­
ness.
M r. V e b e r b e ­
gan his banking
career at F irst
N a t i o n a l in
M arch of 1911. He
w orked p rim arily
in the operations
d i v i s i o n of t h e
b an k and at th e
C. H . V E B E R
tim e of his re tire ­
m en t last May w as responsible for this
function.

He w as one of th e few persons to
have ever w orked for th e F irs t N a­
tional for m ore th a n 50 years.
Upon his re tire m e n t he and Mrs.
Veber m oved to California.
* * *
Eugene Zaloudek has been ap p o in t­
ed cashier and a ssistan t vice p resid en t
of the Southw est B ank of Omaha.
Mr. Zaloudek, 30, is on th e board of
governors
of th e Om aha C hapter,
A m erican In stitu te of Banking. He
lives in Papillion.
He resigned as a ssistan t cashier of
th e Stock Y ards N ational B ank of
Omaha to take th is new position.
* * *
The board of directors of th e F irs t
N ational B ank
of Omaha has a n ­
nounced the election of S. E. Elliott as
a s s i s t a n t vice
president.
Mr. E llio tt is a
g r a d u a t e of the
U n iv ersity of Illi­
nois, w here he re ­
ceived his B ache­
lor of Science De­
gree in g e n e r a l
business.
He has had 21
s. l . E L L I O T T
y e a rs’ experience
in i n s t a l l m e n t
credit, five and one-half y ears in com­
m ercial banks and m ore th a n 15 y ears
w ith the Com m ercial C redit C orpora­
tion. He cam e to th e F irs t N ational
B ank from th e U nion Commerce B ank
of Cleveland, w here he organized a
new in stallm en t d ep artm en t in J a n u ­
ary, 1956.
* * *
William L. Schmidt, drive-in teller
at the F irs t N ational B ank of Omaha,
recently w on sixth prize in a national
contest sponsored by th e A m erican
E x p ress Company. H is prize w as a
toaster-oven.
In 50 w ords or less, he recom m ended
th e various advantages of using A m er­
ican E x p ress T ravelers Cheques.
* * *
M. M. Meyers of Omaha, p resident of
In v esto rs Life Insu ran ce Com pany of
N ebraska, announced recently th e ap ­
p o intm ent of Leonard E. Sample,
C.L.U., as vice presid en t and agency
d irector of Inv esto rs Life In surance
Com pany of N ebraska w ith offices at
1020 Omaha N ational B ank Building.
The Inv esto rs Life In su ran ce Compa­
ny is a w holly ow ned subsidiary of
Life Inv esto rs of N ebraska, a com ­
pany w hich th is fall astonished m any
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

Nort hwest ern Banker, January, 1962


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

Bill Keeffe, Credit Review Department

He works fo r you . . .
The Credit Review Department is the center of the Omaha National
Bank’s credit work. You may never see Bill Keeffe, but whenever you
give your bank as a credit reference, he is there working for you . . .
just another of the many Omaha National Bank people who help to serve
you quickly and efficiently.

T

h

e

O

m

a h a

17th and Farnam Streets

N

a t i o n a l

B

a n k

Member Federal Deposit Insurance Corporation
Nort hwest ern Banker, January, 1962


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

64

Nebraska News

M O V ING T IM E —T he e s ta te a n d t r u s t d e p a rtm e n t o f th e F i r s t
N a tio n a l B a n k of O m aha h as re c e n tly m oved in to its h a n d ­
som ely rem o d eled q u a rte rs on th e fifth floor of th e b a n k b u ild ­
in g . Varrò H. Rhodes, v ice p re s id e n t a n d t r u s t officer, sa id t h a t
th e space now o ccupied b y th e d e p a rtm e n t is double t h a t o f its
fo rm e r q u a rte rs in th e b a n k ’s w e st lobby. T he d e c o ra tio n s in ­
c lu d e a tt r a c t iv e w a ln u t p a n e lin g a n d g ra ss c lo th on th e w alls.
A u n iq u e f e a tu r e of th e a re a is th e in d iv id u a lly d e c o ra te d

N e b r a s k a n s by selling $1 m illion
shares of stock to N ebraskans in less
th a n five w eeks’ tim e.
Mr. Sam ple com es from W aterloo,
Iowa, w h ere he has been com m unity
agency d irecto r for th e F a rm B ureau
Life In su ran ce Com pany of Iowa. He
h as held a n u m b er of im p o rta n t offices
w ith th a t firm for th e p ast six years.

To Build Drive-In
The N ebraska S tate Bank, South
Sioux City, Neb., has announced plans
to co n stru ct a new drive-in b anking
facility.
E xecutive Vice P re sid e n t H. L.
B rune said co n stru ctio n is u n d erw ay
an d it should be com pleted in F e b ­
ruary.
The new facility is located on W est
21st S treet, about 150 feet w est of
D akota A venue. A 66 by 132 foot lot
w as pu rch ased to accom m odate th e
new u n it. The b uilding m easures 12
by 15 feet and p ark in g w ill be p ro ­
vided for 15 cars. T otal construction
cost is estim ated at betw een $25,000
and $30,000.

Mrs. Mark O’Shea
Mrs. M ark O’Shea, 73, w ife of th e
p resid en t of th e F a rm e rs N ational
B ank at M adison, Neb., died recen tly
a t a N orfolk hospital. She had been
in failing h ealth due to a h e a rt ailm en t
and en tered th e h ospital a few days
before she died.

Joins Falls City Bank
R ex S. C hestnut, fo rm erly an Iow a
farm er and a 1958 g rad u ate of Iow a
State U n iv ersity a t Ames, has joined
th e R ichardson C ounty B ank a t F alls
City, Neb., as ag ricu ltu ral re p re se n ta ­
Nort hwest ern Banker, January, 1962


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

offices fo r each officer in th e d e p a rtm e n t. T he offices su rro u n d
a c o m fo rta b le re c e p tio n a re a . To c e le b ra te th e m ove, th e
d e p a rtm e n t p la y e d h o st to b u ild in g te n a n ts a n d O m aha a t ­
to rn e y s a t a re c e p tio n in th e n ew q u a rte rs . O th e r b a n k d e p a r t­
m e n ts w h ich m oved to th e floor fo rm e rly occupied b y b u ild in g
te n a n ts a re th e b u ild in g m a n a g e m e n t office, th e p e rso n n e l de­
p a rtm e n t, a n d th e m o rtg a g e lo an d e p a rtm e n t.

tive and a ssistan t vice president.
Mr. C h estnut becam e a farm ownero p erato r afte r W orld W ar II, and at
th e age of 32 en tered Iow a State U ni­
versity. H e grad u ated w ith a degree
in ag ricu ltu ral business in 1958.

nam ed p resid en t of th e C raw ford bank
and Mr. H all w ill serve as chairm an
of th e board. A nna C. Prieshoff, as­
sistan t cashier, is th e new cashier.
Mr. Hall, Mr. Spray, R. L. W arren
and Don C. W illiam s compose the
board of directors.

New Time-Temp. Sign
A new tim e and tem p eratu re clock
has been installed a t th e G ering N a­
tio n al B ank, Gering, Neb.

Occupies Addition,
Rem odels Former Quarters
The F irs t N ational B ank & T ru st
Com pany, Columbus, Neb., m oved into
its new addition recen tly and rem od­
eling of th e lobby and basem ent of the
older po rtion of th e b an k is u n d er­
w ay. The w all betw een th e tw o sec­
tions is being rem oved, leaving one
large b an king facility.
Com m ercial loan d ep artm en ts and
executive offices w ill occupy the lobby
area of th e old section and th e in ­
stallm en t loan d ep artm en t w ill be in
th e basem ent. R em odeling also w ill
include th e construction of m ore p ri­
v ate offices.

Buys Crawford Bank
H ow ard E. Hall, chairm an, The Martell State Bank, M artell, Neb., and
ow ner of th e H all-Lichty Insu ran ce
A gency in Lincoln, has purchased con­
tro llin g in te re st in the Craw ford State
B ank, Craw ford, Neb., from J. R,
Ivins, president.
Mr. H all is a form er executive in
th e W oodm en A ccident and Life In ­
suran ce Com pany in Lincoln. H e w ill
continue to reside in Lincoln.
E ldon Spray, cashier, has been

Joins Holdrege Staff
The F irs t N ational B ank of H old­
rege, Neb., has announced th e ap p o in t­
m en t of R euben O. A nderson as farm
fieldman. Mr. A nderson is filling in
for Clarence A. P eterson w ho w as hos­
pitalized recently, and w ill continue
w hen Mr. P eterso n is able to re tu rn to
the bank.
Mr. A nderson is a farm ow ner and
has fed cattle for 41 years.

Joins Kimball Bank
LeeR oy Brown, fo rm erly assistan t
cashier a t th e F irs t N ational B ank in
R iverton, Wyo., has been nam ed as­
sista n t vice p resid en t in charge of the
installm en t loan d ep artm en t of the
A m erican N ational B ank of Kim ball,
Neb.
Mr. B row n had been affiliated w ith
th e R iverton b an k since 1958. P rio r
to th a t he w orked for th e C arter Oil
Com pany for 10 years.

Fullerton Rem odeling
W ork w as started recently on the
rem odeling of th e basem ent of the
F u lle rto n N ational Bank, F u llerto n ,
Neb.
New w all paneling and soundproof
ceiling tile are being installed. The
area w ill house th e bookkeeping de­
partm en t, w ill provide a m eeting
room, p riv ate offices and a lounge
room.

65

M E E T

J I M

C O O K

Jim is the latest addition to our Correspondent Bank !
Department. From a Masters Degree in Animal Hus­
bandry at Missouri, he went on to gain a wide range of
practical experience in livestock production. He is fa­
miliar with every phase of farming and ranching. You’ll
enjoy meeting him. He’s another reason why we say
our kind of banking is person-to-person ... man-to-man.

FIRST NATIONAL BANK OF (l\I\IIA

16TH & FARNAM ■ OMAHA, NEBRASKA ■ MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Jim Cook, Lawrence R ojem , and interested critter.

Nort hwest ern Banker, January, 196Z


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Federal Reserve Bank of St. Louis

66

POLICY of displaying pro d u cts
m an u factu red or produced in Lincoin or N ebraska has been followed by
th e National Bank of Commerce Trust

A

and Savings Association of Lincoln
since it opened its expanded banking
facilities in M arch of 1960. Both window space and lobby space have been

used. The in te re st has been sporadic
w ith some products a ttra c tin g consid­
erable in te re st and o thers receiving
only a casual glance.
W hen a fallout sh elter w as erected
in th e lobby, how ever, a trem endous
public curiosity w as shown. Crowds
g athered around and in it. M any and
varied reactions w ere expressed, m ost­
ly favorable, b u t a few critical of such
a display being m ade by a bank. T ypi­
cal favorable rem ark s w ere along the
line of “I sure w ish we had one in
our y a rd ”; “Now this is som ething sen­
sible”; “T h a t’s the an sw er”, etc.

A B A N K E R ’S BANKER

FA L L O U T SH E L T E R d isp la y in th e
lo b b y o f th e N a tio n a l B a n k o f C om m erce
in L in co ln .

W inton W. B u ckley, A gricultural C onsultant
Before joining the staff of your Capital City Correspondent
in 1960, Winton Buckley successfully managed his own farm­
ing and feeding operation for eight years. He is thus well
equipped by first hand experience to help you find the answer
to any agricultural problem.

NATIONAL

m

BMKofCOMMERCE
TR U ST & SAVINGS
Lincoln, Nebraska

“Your Capital C ity Correspondent”
Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

The few critical rem ark s w ere in the
vein of “W hat a ho rrid rem in d er of
w orld conditions”; “W h at good w ill it
do, everybody else w ill be dead or
horrib ly m aim ed”; “W h at w ill we
come out of it to find,” and, of course,
a sm all few said w ords to th e effect
th a t th ey d id n ’t like to see such things
in th e ir bank.
The display w as in th e b an k lobby
for th re e w eeks and one evidence of
th e in te re st show n w as th a t m any
tim es a husband, or a wife, w ho did
th e b anking for th e fam ily and saw
th e display w ould b rin g th e spouse
back dow n to th e b an k to take a look.
The display w as tim ed rig h t as the
new spapers, radio and TV w ere all
carry in g stories on th e R ussian explo­
sions in th e atm osphere and th e pos­
sible sta rtin g of u n d erg ro u n d explo­
sions by th e U. S.
Some type of display is eith er in the
lobby or a w indow a t all tim es and
space is booked th ree m onths ahead.
Processors and m an u factu rers from as
far aw ay as Scottsbluff, N ebraska (400
m iles), have displayed th e ir products.
In q u iries and scheduling are handled
by th e public relations d ep artm en t
u n d er th e supervision of A. B. Good­
win, a ssistan t vice president.
* * H*
The drive-in b an k of First Continen­
tal National Bank and Trust Company

67

L a r g e - s c a le e sta te p la n n e r . . . b o a t m a n ...

FIRST CONTINENTAL
IS A X 1 C) IN A I I 2 T H & N

It V > K

S T R E E T

X R U S X
L I N C O L N ,

C O M H A >' '
N E B R A S K A

"banker-on-the-job” for you

GENE REECE
Eugene K. Reece was a banker at age 15,
sweeping floors and licking envelopes in the
Ashland bank. Since then there have been
two military hitches, Nebraska University graduation,
and fourteen years at First Continental.
Weekdays Gene is estate planner for correspondent bankers
and customers they ask him to see, working in the trust
and investment departments. Weekends, nice weather lures him,
his wife, and their two boys to their South Bend cabin and boat.
A First Continental bank officer since 1952,
Gene Reece is another man correspondent bankers
count on for top service.

Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

68

Nebraska News

First Continental's Drive-In cited as best architectural work in state.
of Lincoln w as one of four buildings in
N ebraska m eritin g an h onor aw ard a t
th e an n u al m eeting of th e N ebraska
C hapter of th e A m erican In s titu te of
A rchitects.
The fo u r buildings, including F irs t
C ontinen tal’s drive-in bank, w ere cited
by th e N ebraska C hapter as “th e best
a rch ite c tu ra l w o rk being done in th e
state.”
T he drive-in b a n k also w on in te r­
n ational a tte n tio n in J u ly in a cover
pictu re an d featu re article in th e B rit­
ish publication, T he A rch itect and
B uildin g N etvs.

George W. H olm es has presented
th e C ity of L incoln w ith a gift of
$100,000 to expand th e boundaries of
V an D orn P ark, th u s continuing a life­
long in te re st in advancem ent of L in ­
coln’s cu ltu ral and social atm osphere.
A t th e age of 81, Mr. H olm es still ex­
hib its daily th e en th u siasm th a t has
m ark ed his six decades of service to
th e capital city, m ost of it as a prom i­
n e n t L incoln banker.
H e w as associated w ith th e F irs t Na­
tional B ank m ost of his career, re tir­
ing in 1960 sh o rtly before the m erger
w ith C ontinental N ational to form the

p resen t F irs t C ontinental
B ank and T ru st Company.

N ational

6 0 tli A n n iversary
T he O’Neill N ational Bank, O’Neill,
Neb., recen tly m ark ed its 60th an n i­
versary . Officers of th e b an k are F. N.
Cronin, president; J. B. G rady, vice
president; O. D. F rench, cashier, and
W. D. Melena, a ssista n t cashier.
T he p re se n t b an k building has
housed th e in stitu tio n since it w as or­
ganized in 1901. C onstruction of a
new building is planned for this
spring.

Plan S u m m er C ourse
It w as announced recen tly by J. M.
F ord II, president, F irs t N ational
B ank of St. Joseph, th a t a sum m er
sh o rt course for y ounger staff m em ­
bers w ill be repeated n ex t sum m er.
The program w as conducted for the
first tim e last sum m er.
Jo h n McCaskey, vice president, w as
in charge of th e program th a t is de­
signed to enable The F ir s t’s young as­
sociates to b e tte r serve its custom ers.
F eatu red in th e program w ere officers
of th e b an k and o th er ban k in g and
business leaders.
M any correspondent b a n k s also
have indicated th e ir in te re st in enroll­
ing some of th e ir young people in the
course n ex t sum m er.

R en a m ed I.B .A . D ir e cto r
E m il Placek, president, F irs t N a­
tional B ank of W ahoo, Neb., has been
re-elected N ebraska d irector of th e In ­
dependent B ankers A ssociation and
w ill serve a three-year term .

O gallala B ank A p p ro v ed
S tate B anking D irector R alph Misko
has g ran ted th e c h a rte r application of
M elvin H. Adams, Sr., of B rule for a
new b an k in Ogallala, Neb. T he new
b an k w ill be know n as th e K eith
County B ank and w as scheduled for
opening sh o rtly after th e first of th e
year.
In g ran tin g the application, Mr.
Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

Nebraska News
Misko s t i p u l a t e d th re e conditions
w hich had to be m et p rio r to th e open­
ing of th e bank: 1. The capitalization
m u st be increased from $150,000 to
$200,000 w hich includes $100,000 capi­
tal, $50,000 su rp lu s and $50,000 u n d i­
vided profits. 2. The b an k m u st open
before Ju n e 10, 1962. 3. In fo rm atio n
co ntained in th e p relim in ary applica­
tio n m u st rem ain relativ ely th e same.

69

C en tra l N at hauti to Neir Q uarters

Mr. Adam s, th e prin cip al stockhold­
er, said th e organizers are p rep ared to
m eet all th re e conditions.
O ther stockholders and organizers,
w ho w ill serve as directors, are M elvin
H . Adams, Jr., Brule; P hilip A. Brow n,
Brule; K en n eth E. H arding, Ogallala;
S. G. Sam uelson, Lem oyne; G. J. McG inley, Ogallala; C. A. Linch, Big
Springs, and Jam es A. Lane and G or­
don W est, Ogallala.
Mr. A dam s is p resid en t of th e B ank
of B rule and he w ill be assisted in th e
active m an ag em en t of th e K eith Coun­
ty B ank by his son, Melvin H. Adam s,
Jr., executive vice p resid en t of the
B ank of B rule.

J o in s D o u b le T T F irm
Dale R atliff has been appointed sales
re p resen ta tiv e for Iowa, N ebraska,
South D akota and N o rth D akota by
th e A m erican Sign & In d icato r Corpo­
r a t i o n , Spokane,
W ash . H e w ill
h e a d q u a r t e r in
O m a h a , w orking
u n d e r th e cen tral
division office of
th e com pany, lo­
cated a t 8 South
D earborn, C h ic a ­
go.
Mr. R atliff has
been in sales con­
s u lta tio n w o rk
fo r th e p ast seven years. A m erican
Sign m an u factu res and in stalls Dou­
ble TT tim e and te m p e ra tu re displays
for financial in stitu tio n s.

C H IEF E X E C U T IV E S of C e n tra l N a tio n a l p a u se d u rin g a n in sp e c tio n of th e firm ’s
new h e a d q u a rte rs ju s t b e fo re m o v in g v a n s a rriv e . Clarence L. Landen, Jr., w ho s u p e r­
v ise d th e c o n stru c tio n a n d th e m ove, is show n in th e s p o rts h irt, flan k e d b y J. Earl
Thompson, vice c h a irm a n , a t le f t, a n d N orm an T. Carson, p re s id e n t of C e n tra l N a tio n a l
L ife . M r. L a n d e n is p re s id e n t of th e p a re n t com pany a n d th e P r o te c tiv e N a tio n a l I n ­
su ra n ce C om pany.

C HRISTM AS cam e a bit early to
some 240 hom e office em ployees of
th e C entral N ational In su ran ce Group.
The O m aha-based in surance firm
m oved into a new and m ore spacious
h ead q u arters building at 700 South
72nd S treet over the w eekend of De­
cem ber 1-3.
S erving as v irtu a lly a one-man task
force w as Clarence L. Landen, Jr.,
p resid en t of C entral N ational. Since
con stru ctio n started in F eb ru ary , 1961,
he has been on th e job site every avail­
able m inute, and he donned sports
clothes to supervise th e m ove itself.
Included in th e group are th e Cen­
tra n N ational In su ran ce Company, the
C entral N ational Life In su ran ce Com­
pany, and the P rotective N ational In ­
su rance Company.
L ocated in th e new executive w ing

are Mr. Landen, J. E a rl Thom pson,
vice ch airm an of the board, and N or­
m an T. Carson, presid en t of C entral
N ational Life Insurance.
T ogether, th e tw o u n its have a fro n t­
age of 507 feet and a floor area of ap ­
proxim ately 75,000 square feet, th ree
tim es th e size of th e three-story dow n­
tow n Omaha building w hich th e firm
had occupied since 1953.
T his m ove is th e th ird in th e 14y ear h isto ry of th e fast-grow ing Oma­
ha firm. C hartered in 1947, C entral
N ational sta rte d w ith a hom e office
staff of ju st 10 people. Now a m ultiple
line operation, including credit and
ord in ary life, fire and casualty in su r­
ance, th e C entral N ational Group to­
day is rep resen ted in 46 states, P u erto
Rico and th e D istrict of Columbia.

A complete, time tested, performance guaranteed outfit

For Auction Sale Clerks
COMBINES ALL THE FEATURES YOU DEMAND

V alley O p en H ou se
Open house w as c o n d u c t e d last
m onth at th e rem odeled B ank of V al­
ley, Neb.
The b an k w as enlarged by tak in g
out a w all b etw een th e b an k and an
adjoining building, doubling th e w ork
area. Some of th e new facilities in ­
clude a n ig h t depository, a new safety
deposit vau lt, a sound system for back­
g ro u n d m usic, new B u rro u g h s posting
equipm ent, new w indow s, a new e n ­
try , and new furnishings.

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

Receipts for Each Buyer

•

• Combats Skip Buyers

No Additional Listing

•

• Speeds Up Settling

No Posting of Accounts

•

• Buyers Like It

Absolutely the only outfit on the market combining all these features—
sold on a money back guarantee.

BLACK
SALE SYSTEM
*Telephone Nos. 536-2651 or 536-2522
Fullerton, Nebraska
Wri te Us for Sample Sheets and Information
Nort hwest ern Banker, January, 1962

70

O u r

G ift

to

in

O u r new b u ild in g , o u r re m o d e lin g an d m o d e rn

e q u ip m e n t

9
show

th e

pro g ress

of

B ankers T ru s t C om pany in offering C o rre sp o n d en t B anks m ore efficient and faster
service.

Cy K irk an d H o m er Jen se n are o u r capable re p re se n ta tiv e s th a t can assist

any b a n k in Iow a w ith in fo rm a tio n re g a rd in g so u n d b a n k in g o p eratio n s.

BANKERS TRUST COMPANY
DES MOINES, IOWA
M em ber : F e d e ra l D ep o sit In su ra n ce C orp o ra tio n

Nort hwest ern Banker, January, 7962


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Federal Reserve Bank of St. Louis

•

F e d e ra l R eserv e S y stem

71
as a teller. F o rm erly he w as w ith th e
C lark Cattle Com pany in Sioux City,
and the W oodbury B ank & T ru st Com­
p any in Sioux City.
Jo h n W. U hlenhake, a ssistan t cash­
ier, resigned recen tly from th e A kron
b ank to become a savings and loan
exam iner.

Iowa

NEW S
CHARLES W. WALCOTT
FRANK WARNER

President

Secretary

Sioux City

T o C lose O ffice

Des Moines

A n n ou n ce 4¿coup M eetin g s
for th e 1962 iow a
B ankers A ssociation group m eet­
ings have been announced. F ollow ing
are th e date and m eeting places:
G roup 1 — M onday, F e b ru a ry 12,
Sioux City.
G roup 11—T hursday, F e b ru a ry 22,
B urlington.
G roup 5—T uesday, M ay 8, Council
Bluffs.
Group 10—W ednesday, May 9, C har­
iton.
G roup 6—T hursday, M ay 10, M ar­
shalltow n.
G roup 2—F rid ay , May 11, W eb ster
City.
G roup 3—Tuesday, M ay 22, Clear
Lake.
Group 4—W ednesday, May 23, New
H am pton.
G roup 7—T hursday, M ay 24, W a te r­
loo.
Group 8—F riday, M ay 25, D aven­
port.
H ead q u a rte rs for th e G roup 1 m eet­
ing w ill be th e Sioux City M unicipal
A uditorium . Officers of th is group
are: C hairm an, H e rb e rt P. K nuth,
president, H olstein State B ank, H ol­
stein; secretary , C lark A rnott, p re si­
dent, Sac City State B ank, Sac City.
H ead q u a rte rs for th e G roup 11 m eet­
ing w ill be th e B u rlin g to n Hotel. A
special social event w ill be held th e
n ig h t p rio r to th e actu al m eeting. Of­
ficers of G roup 11 are: C hairm an,
F ra n k L. Kos, vice president, W ash ­
ington S tate Bank, W ashington, and
secretary, C harles H. W alsh, p re si­
dent, F a rm e rs & M erchants Savings
Bank, B urlington.

S

chedules

E a rlin g R e m o d e lin g
A rem odeling project has been com ­
pleted a t th e F a rm e rs T ru s t & Savings
Bank, E arlin g , Iowa.
In th e basem ent, th e old v a u lt w as
rem oved and a new storage v a u lt in ­
stalled. T he re g u la r v a u lt w as m oved
to th e m ain floor level.
In th e lobby area, four new coun­
te rs w ere installed, one office w as con­
stru cted in th e fro n t and an o th e r in
th e rear, all floors w ere refinished
w ith terrazzo, w alls w ere finished in

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Federal Reserve Bank of St. Louis

ru stic oak, and acoustic tile w as in ­
stalled on th e ceilings. New ShawW alker desks and chairs w ere p u r­
chased and lobby fu rn itu re w as sup­
plied by U. S. Check Book Company.
D uring th e rem odeling business w as
conducted in th e new basem ent area,
re p o rts A. J. Heese, cashier.

M arion O w ner

P h il M orris has assum ed m anage­
m en t of th e F irs t
N ational B ank of
M arion, Iowa, fol­
lo w in g purchase
of controlling in ­
te re st as rep o rted
in th e N o r t h w e s t ­
er n B a n k e r last
m onth.
Mr. M orris came
to M arion as as­
sistan t cashier in
P H IL M O R R IS
1 9 5 2. H e w a s
nam ed a d irector in 1955 and tw o
years ago w as appointed cashier.

F rank P. B ren n an
F ra n k P. B rennan, chairm an, W al­
n u t State Bank, W alnut, Iowa, died
u nexpectedly recently. He w as born
October 19, 1893. B urial w as a t P erry,
Iowa.

C apital In crea sed
C apital stock of th e S ecurity B ank
& T ru st Company, Decorah, has been
increased from $52,500 to $100,000 by
a com m on stock dividend, rep o rts the
Iow a D ep artm ent of Banking.

The Avoca State Bank, Avoca, Iowa,
has announced plans to close its H an ­
cock office. Com pletion of new q u ar­
te rs for th e b an k in Avoca has p ro ­
vided necessary space so th a t th e ban k
can offer com plete facilities a t th e
Avoca h ead q u arters w ith o u t th e add­
ed expense of m ain tain in g th e H a n ­
cock office.

A d el P r o m o tio n s
Mrs. P auline Tom linson and Donald
H. Jo rd ah l have been prom oted to as­
sistan t cashiers at th e D allas County
State Bank, Adel, Iowa.
Mrs. Tom linson has been w ith th e
b an k six years, and has been m anager
of th e bookkeeping d ep artm en t for th e
past three.
Mr. Jo rd ah l joined th e b an k in 1960,
after serving for a tim e as a ssistan t
extension director of B uena V ista
County.

5 0 th A n n iversary
P eter B. Mouw, president, F irs t N a­
tional B ank of Sioux Center, Iowa, re ­
cently com pleted a h alf c en tu ry of
service to th a t bank. He joined th e
staff on D ecem ber 20, 1911, as a ja n i­
tor-bookkeeper. In 1917 he w as ad­
vanced to teller and in 1918 becam e
a ssistan t cashier. In 1946 he w as
elected cashier and a year later w as
nam ed vice presid en t and cashier. On
J a n u a ry 10, 1956, he w as elected p resi­
dent.
A d in n er w as held in his honor last
m onth m ark in g th e occasion.

2 5 Y ears o f S erv ice

J o in s A k ron Staff

R u th Clasen, a ssistan t vice p resi­
dent, Iow a T ru st & Savings Bank,
E m m etsburg, w as honored last m onth
upon h er com pletion of 25 years of
service to th e bank.

R obert J. H artm an has joined th e
F irs t N ational B ank of A kron, Iowa,

T r ip le O p en H o u se

IM PO R T A N T N O T IC E !
We want to publish news of any
officer or director changes, in­
creases in capital structure, or
other important action taken at
your annual meeting. Send this
news at once to N o r t h w e s t e r n
B a n k e r , 306 Fifteenth Street,
Des Moines 9, Iowa.

The F a rm e rs State B ank and tw o
o ther B ayard in stitu tio n s conducted
open houses recently, m ark in g com ple­
tion of rem odeling program s.
The B ayard v o lu n teer fire d ep art­
m ent and th e B ayard N ew s-G azette
conducted open house along w ith th e
bank.
T he F arm ers S tate B ank com pletely
renovated th e inside of its building
th is fall.
Nort hwest ern Banker, January, 1962

Iow a N ew s

72

G r e a te r tia r a C o r p o r a tio n
It a n s C e lla r C a l is tta n li

Falls. He also is p resident and one
of the organizers of M idway N ational
Bank.
He is a m em ber of th e board of di­
recto rs of th e F ed eral R eserve B ank
of Chicago and a p ast presid en t of th e
Iow a B ankers Association.
Mr. M esserer has been w ith th e
F irs t N ational B ank since 1940. H e
becam e cashier in 1949, vice president
and cashier in 1953, and in 1957 w as
advanced to executive vice president.

H E G reater Iow a C orporation has
announced acquistion of a control­
ling in te re st in th e F irs t N ational
B ank of Cedar Falls, Iowa, a 33-yearold b an k w ith assets of ap p ro x im ate­
ly $8,230,000.
The acquisition b e c a m e effective
J a n u a ry 2, it w as announced by
W alter W. G oeppinger of Boone, p re s­
ident of The G reater Iow a C orpora­
tion, a statew ide in v estm en t com pany

T

S c h o o l Board D ir e cto r
V. W . JO H N S O N

Satisfied Insureds and
Agents Agree--

r e lia b le

SOME
E X C E L LE NT
AGENT
OPENINGS
IN
I O WA.

N O W

INO
U
R
62nd YEAR

i

'FIRE

PROMPT EXTENDED
CLAIM COVERAGE
SERVICE! INLAND
f MARINE
HOMEOWNERS
AUTOMOBILE
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P O L IC IE S

ü u tu a lJ te
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f / r rt t S f f t a r t e e

o u tt / t a n y

Established 1900

HOME OFFICE CEDAR RAPIDS, IOWA
J. E. W ilson, President

J. M. W in ch e ll, S e cre ta ry

Nort
ern Banker, January, 7962
Digitized
forhwest
FRASER
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Federal Reserve Bank of St. Louis

H.

C.

M ESSERER

organized a year ago for the purpose
of developing Iow a’s resources.
No change in m anagem ent of the
b ank is contem plated, Mr. G oeppinger
said.
The acqusition w as effected by the
purch ase of stock in th e b ank from
V ivian W. Johnson, president; H oyt
C. M esserer, executive vice president;
and W alter E. Brow n, George F. N ew ­
m an, Mrs. M ary K. M artin, R obert C.
W y th and Mrs. A nna P eterson, all of
Cedar Falls.
It is planned, Mr. G oeppinger an ­
nounced, th a t Mr. Jo hnson w ill rem ain
w ith th e b an k as chairm an of the
board, and Mr. M esserer w ill become
p resid en t and executive officer.
As of N ovem ber 30, 1961, th e bank
had to tal assets of $8,229,825.53 and to ­
ta l deposits of $7,453,040.23.
It w as announced th a t u n d er the
pu rch ase agreem ents, all stockholders
of th e b ank w ill be given the op p o rtu ­
nity, up to M arch 1, 1962, to sell th e ir
sh ares to The G reater Iowa C orpora­
tion at th e sam e price paid to those
w ho are selling control of the bank.
The corporation also purchased Mr.
Jo h n so n ’s in te re st in th e M idway N a­
tio n al Bank, w hich opened in July,
1961, and is located on H ighw ay 218
betw een Cedar F alls and W aterloo.
The sale w as negotiated by the dean
of b an k salesm en, H en ry H. Byers,
p resid en t of B ankers Service Compa­
ny, Des Moines, Iowa. W .N. Shellenbarger, tre a su re r of th e G reater Iowa
C orporation and presid en t of the
F a rm e rs State B ank in M arion, Iowa,
rep resen ted th e purchaser.
The G reater Iow a C orporation, w ith
executive offices in Boone and bu si­
ness offices in Des Moines, recently
com pleted th e sale of $10 m illion in
com m on stock to 12,000 Iow a residents
th ro u g h o u t the state.
Mr. Jo h n so n has been chief execu­
tive officer of th e F irs t N ational B ank
of Cedar Falls since 1928, w hen it w as
organized to acquire the Security
T ru st and Savings B ank and th e Citi­
zens Savings Bank, both of Cedar

A. V. Dieken, president, F arm ers
Savings Bank, G rundy Center, Iowa,
has accepted an in terim ap p o in tm en t
as a m em ber of th e board of d irecto rs
of th e S tate A ssociation of School
Boards. He w ill fill an un ex p ired term
of C. J. Pow ell of P erry.

L isco m b O p en H o u se
Open house w as conducted last
m onth a t the recen tly rem odeled L is­
comb office of th e U nion-W hitten State
B ank of Union, Iowa. The office has
been com pletely m odernized w ith new
fu rn itu re and equipm ent.

H ead s P erry C ham ber
Tom Sm ith, executive vice p resi­
dent, F irs t N ational Bank, P erry ,
Iowa, has been elected vice presid en t
of the P e rry Cham ber of Commerce.

H on ors B e lm o n d Bank
An editorial in th e Belm ond In d e ­
pendent recently praised the o u tstan d ­
ing w ork the F irs t S tate B ank of Bel­
m ond has done du rin g th e p ast year in
th e sale of savings bonds. The edi­
to rial also pointed out o th er civicm inded efforts of th e bank.

J o in s R ip p e y Staff
M yron R inker of Boone has joined
the F irs t N ational B ank in Rippey,
Iowa, filling a vacancy left by the res­
ignation of Ivan Lindell, assistan t
cashier. Mr. Lindell joined th e S tate
B ank of F ayette.

M arion O p en H o u se
Open house w as conducted recently
at th e F a rm e rs State B ank of Marion,
giving th e public an op p o rtu n ity to
view th e b a n k ’s new facilities.
The new m ain banking room m eas­
ures 20 by 60 feet. A w all w as re ­
m oved joining th e b ank w ith th e Kepros building. The old b anking area
w as rem odeled into officers’ q u arters
and th e new portion houses th e b ank­
ing lobby.
In addition to the com plete rem odel­
ing, 150 new safety deposit boxes have
been installed.

73

LEO R . G R U B ER

R O B E R T LO U G H

F R E D D . C U M M IN G S

President

Senior Vice President
Investm ents

Vice President
Correspondent B a n k s

STEP H EN O. B R A T T LEA F

JO H N F. K E E L E Y

Vice President
C o m m ercial Lo an s

Vice President
Instalm ent Lo an s

H A R O L D F. E D W A R D S
Vice President <£ Cashier

C H A R L E S F. O ’N E IL L

B E R N A R D D . M IL L E R

JA M E S G. LU T H E R

Vice President & Comptroller

Assistant Vice President
Io w a R ep resen tative

Assistant Cashier
W isco n sin Rep resentative

Som e D ro ve rs M en
A n d T h e Services T h e y ’ll P erform F or You
Modern banking calls for specialists-for men whose knowledge

Sharing specialized knowledge in the banking and investment

and experience equips them to render prompt, efficient and cour­

fields, supplying credit information, and providing collection serv­

teous attention to your needs and those of your customers-in

ices are typical of the ways in which Drovers’ staff serves its

short, for men like those above-who are representative of the

correspondent bank customers. Write us, or call collect. We will

people and talents available to you at Drovers.

appreciate the opportunity to be of service to you.

MEMBERS
F .D .I.C .


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Federal Reserve Bank of St. Louis

^Drovers Bante
Drovers National Bank »D rovers T ru st & S a vin g s Bank

UNION S T O C K Y A R D S , C H IC A G O 9, IL L IN O IS
Nort hwest ern Banker, January, 1962

74

Iowa News

M u sca tin e Opens O vivv-in

pany, O ttum w a, th is year saved $131,345.50. Club savings in the th ree Ot­
tu m w a banks totaled $346,181.50. Of
this, 1,604 m em bers accum ulated $150,882.50 a t th e F id elity Savings Bank,
and 252 m em bers saved $23,953.50 at
the South O ttum w a Savings Bank.

“ B rig ’’’ W h e e lo c k R etires

O PE N H O U SE w as h e ld la s t m o n th a t th is n ew d riv e -in a n d w a lk -u p f a c ility a t th e
M u s c a tin e B a n k & T ru s t C om pany, M u s c a tin e , Io w a . A b o u t 8,000 p e rso n s a tte n d e d
a n d 10 door p riz e s w e re g iv e n a w ay . P riz e s in c lu d e d a. p o rta b le T V set, se v e ra l
tr a n s is to r ra d io s, clock ra d io s, a f r y p an , pop-up to a s te r, a n d fre e in s ta lla tio n of a
co lo red tele p h o n e.

7 0 th A n n iversary
The Lone T ree Savings Bank, Lone
Tree, Iowa, recen tly m arked its 70th
anniversary .
Officers of th e b an k are H. C. Buell,
president; Jam es C. Stock, cashier; H.
S. H am ilton, vice president, and Jean
L. Sexton, a ssista n t cashier.

B yron L. M cK ee
B yron L. McKee, 72, president, M us­
catine B ank & T ru st Company, and a
form er p resid en t of th e Iow a B ankers
A ssociation, died last m onth a fte r a
h e a rt attack.
Mr. McKee w as affiliated w ith th e
M uscatine b an k for n e a rly 50 years.
H e headed th e Iow a B an k ers A ssocia­
tion in 1954 and 1955.
S urvivors include his w idow and
one daughter.

H ead s K ossu th B an k ers
L. W. Davidson, executive vice p re s­
ident, Swea City State B ank, Swea
City, Iowa, has been elected p resid en t
of the K ossuth C ounty B ankers Asso­
ciation. Vice p resid en t is C. C. Gerzema, m anager, L akota office of th e
F a rm e rs T ru st & Savings B ank of B uf­

falo Center. S ecretary is F. L. Mullin,
a ssista n t cashier, F a rm e rs State Bank,
W hittem ore, and tre a su re r is W illiam
N ugent, a ssista n t c a s h i e r , Security
S tate Bank, Algona.

L eaves R ock R ap id s;
Stock P u rch a se P la n n e d
L. H. Saw yer, w ho for th e p ast four
y ears has been executive vice p resi­
d ent of th e Rock R apids State Bank,
left th a t b an k recen tly to join the
U nited C alifornia B ank at Los A nge­
les, Calif. He w ill be in th e hom e
office a t Los A ngeles for a period of
tim e and th en w ill be assigned to one
of th e b a n k 's b ran ch offices.
It also w as announced in Rock R ap­
ids th a t S tanley G. Sm ith, a FD IC ex­
am in er h ead q u artered in F o rt Dodge,
had com pleted p relim in ary steps to
purch ase a m ajo rity stock in te re st in
th e Rock R apids S tate Bank.
T ran sfer of ow nership w as expected
to tak e place at th e an n u al stockhold­
e rs ’ m eeting.

O ttum w a C hristm as C lubs
A to tal of 1,723 C hristm as Club m em ­
bers at th e U nion B ank & T ru st Com­

The re tire m e n t of B. M. “B rig”
W heelock as senior vice presid en t of
th e S ecurity N ational B ank of Sioux
City on D ecem ber 31, w as announced
b y C h a r l e s H.
W a lc o tt, p r e s i ­
dent.
M r. W h e e lo c k
joined S e c u r i t y
N ational in No­
vem ber, 1940, as
vice p resid en t in
charge of th e cor­
respondent bank
departm ent. P re ­
viously h e h a d
B. M . W H E E L O C K
been cashier of
th e F irs t State B ank at M apleton,
Iowa. In Jan u ary , 1955, he w as elected
senior vice presid en t of S ecurity N a­
tional.
A t th e tim e of his retirem en t, Mr.
W alcott paid trib u te to Mr. W heelock
for th e o u tstan d in g w ork he had done
for th e b an k and its correspondents,
w hich had earned for him th e respect
and friendship of m any ban k ers in the
four-state area served by S ecurity N a­
tional.
Mr. W heelock w ill have an office at
211 S ecurity N ational B ank Building.

P lan E van sd ale Bank
A group of Evansdale, Iowa, busi­
nessm en and individuals have filed ap ­
plication for a b ank c h a rte r w ith the
U. S. T reasu ry D ep artm en t and the
Com ptroller. The application has been
tu rn e d over to federal b anking officials
w ho w ill su rv ey th e E vansdale area
to determ ine its banking needs.
The F a rm e rs State Bank, Jesup,
Iowa, now has an office in Evansdale.

M elvin A d d itio n

yc

"

^

Strongfriend o f the
Independent Banker!

/^MARQUETTE
O F M IN N E A P O L IS
a t /M a A ^ u tâ tis
MEMBER

FEDERAL

Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

DEPOSIT

IN SU R A NC E

CORPORATION

FEderal

3-5411

A new addition is being constructed
a t th e M elvin Savings Bank, Melvin,
Iowa.
The addition, on th e n o rth side of
th e building, is to be 20 by 25 feet and
w ill house tw o offices, storage facili­
ties and rest rooms.
A t th e sam e tim e, th e in terio r of the
m ain building is being rem odeled.
New fixtures are being installed and
an air conditioning u n it is being
added. An open house is planned for
th is spring, along w ith observance of
th e b a n k ’s golden an n iversary.

Iowa News

75

Sirva City O pen iny

O P E N H O U SE re c e n tly m a rk e d com ple­
tio n o f a n e x te n siv e re m o d e lin g p ro g ram
a t th e S w ea C ity S ta te B a n k , S w ea C ity,
Iowa.. M ore t h a n 700 p e rso n s re g is te re d .
A s show n a b o v e, m a n y flo ral a r ra n g e ­
m e n ts c o n trib u te d to e n h a n c e th e new
q u a rte rs d u rin g th e open house, a cc o rd in g
to L. W. D avidson, p re sid e n t.

A nita O p en H o u se
A bout 50 b a n k ers and betw een 1,500
and 2,000 p ersons from th e A nita area
atten d ed an open house a t th e A nita
S tate Bank, A nita, Iowa, last m onth
to view th e new ly rem odeled q u arters.
V isitors w ere given 50 free p erso n al­
ized checks d u rin g th e open house to
stim ulate in te re st in th e b a n k ’s new
Post-tronic p osting m achine w hich
w en t into operation J a n u a ry 1. In ad­
dition to free favors, a draw in g for a
U. S. Savings Bond w as conducted for
th e ad ults and an o th er d raw in g for
silver dollars w as conducted for th e
children, re p o rts W. B. M cLuen, p re s­
ident.

H o n ored H y FH H A

F P R A A W A R D fo r o u ts ta n d in g se rv ice
w a s p re s e n te d a t a n n u a l F P R A c o n v en ­
tio n to F rank R. W arden, le f t, d ire c to r,
C e n tra l N a tl. B k. & T r. Co., D es M oines.
G eorge N elson, a.c., r ig h t, a c c e p te d th e
a w a rd on b e h a lf o f M r. W ard e n . R e tire d
a s v ice p re s id e n t of th e b a n k in 1961, M r.
W a rd e n se rv e d tw o te rm s on th e P P R A
b o a rd of d ire c to rs ; as n a tio n a l m em b e r­
sh ip c h a irm a n , a n d as a m em b er o f th e
b o a rd o f ad m issio n s fo r th e F P R A school.


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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, January,

1962

Iowa News

76

f.ft.A .

HARLES H. WALCOTT, president,
C
Iow a B ankers A ssociation, has a n ­
nounced th e ap p o in tm en t of state asso­
ciation com m ittees.
The com m ittees, the ch airm an and,
w here appointed, th e vice chairm an
of each, are as follows:
Agricultural
Max C. Gisel, chairm an; executive
vice president, Iow a S tate Savings
Bank, Clinton. W ill A. Lane, Jr., vice
chairm an; vice president, Security
Savings Bank, M arshalltow n.
Agricultural Credit School
C. E d H itchm an, chairm an; cashier,
Blencoe State Savings Bank, Blencoe.
H erb ert M ertz, vice chairm an; p re si­
dent, W aln u t S tate B ank, W alnut.
Anti-Inflation and Credit Policy
Oscar A. Otto, chairm an; president,
W h itn ey Loan & T ru st Com pany
Bank, A tlantic.
Auditing
Royden M. C hristianson, chairm an;
vice president, F a rm e rs Savings Bank,
Joice.
Banking Analysis
M itchell D. Schroeder, chairm an;
cashier, B ank of Galt. C. D. Moody,
vice chairm an; vice president, F irs t
S tate Bank, N ora Springs.
WHiÊÊKÊiÊÊmmÊÊmÊÊtÊÊaÊÊÊÊiÊÊimmmBmÊK.

BANK
EXECUTIVES
“Leaders Choose Leaders '
TO P

M EN — A t every

C a d illa c

level

know th at

has the w id est choice of the

best ava ila b le positions in the bankinq
field — positions throughout the

nation

with growth organizations offering ch al­
lenging work and top earning po tential.
L E A D IN G

B A N K S — Be

they

large

or

sm all, know th a t C a d illa c 's 35 y e a r repu­
tation has been built on e ffe ctive co n fi­
d ential service to the em ployer looking
fo r the rig h t man.
B O T H T O P M EN A N D L E A D IN G B A N K S
— know

th at

Federal Reserve
H en ry V isser, chairm an; executive
vice presid en t and cashier, F irs t N a­
Bank Taxation
Oscar E. F ristad , chairm an; p resi­ tional Bank, H aw arden. Lorenz A.
dent, F irs t N ational Bank, Le Mars. H orn, vice president; p resid en t and
P aul S. Light, vice chairm an; vice cashier, F irs t State Bank, W ebster
p resident, Gibson Savings Bank, Gib­ City.
Forestry
son.
Carl
E.
H
agem
ann, chairm an; p resi­
Destruction of Obsolete Forms
P ercy E. Sorg, chairm an; vice presi­ dent, State B ank of W averly. R ichard
d en t and cashier, F a rm e rs State Sav­ J. Nachazel, vice chairm an; vice p re si­
ings B ank, Independence. Bill D. d en t and cashier, F a rm e rs & M er­
Paulsen, vice chairm an; cashier, L ib­ chants Savings Bank, B urlington.
Insurance
e rty T ru st & Savings Bank, D urant.
E a rl B. Lem en, chairm an; president,
Federal Legislation
N ational B ank of R ockw ell City. Mel­
E.
F. Buckley, general chairm an,
vin L. A rendt, vice chairm an; p resi­
president, C entral N ational B ank &
dent, Peoples Savings Bank, M onte­
T ru st Company, Des Moines.
zuma.
Serving w ith Mr. B uckley on th is
Installm ent Loan
com m ittee are 14 vice chairm en w ho
Collin W. F ritz, chairm an; vice p res­
w ere chosen from th e ir respective con­
ident, Ja sp e r C ounty Savings Bank,
gressional districts. E ach district, ex­
Newton. W illard D. King, vice ch air­
cept th e fifth, has two vice chairm en.
man; vice president, D avenport B ank
D istrict vice chairm en are as follows:
& T ru st Company.
D istrict 1 — V. O. Figge, president,
Legislative (State)
D avenport B ank & T ru st Company,
M.
J. Grogan, chairm an; president,
D avenport, and H. Lee H uston, p resi­ N ational B ank & T ru st Company,
dent, Colum bus Ju n ctio n State Bank.
C hariton.
D istrict 2—S. E. C oquillette, ch air­
Public Relations and Education
m an, M erchants N ational Bank, Cedar
Jam es R. G ilruth, chairm an; vice
Rapids, and W aldo Adams, president, president, Clear Lake B ank & T ru st
F irs t N ational Bank, Dubuque.
Company, Clear Lake. J. L aurence
D istrict 3— V. W. Johnson, chairm an, H enss, vice chairm an; cashier, WayF irs t N ational Bank, Cedar Falls, and land State Bank, W ayland.
M. J. K laus, president, F irst Security
Small Business Credit
B ank & T ru st Company, C harles City.
G. O. Nelson, chairm an; vice p resi­
D istrict 4—Roy M. Shields, executive dent, Iowa-Des Moines N ational Bank,
vice president, E xchange Bank, Bloom­ Des Moines. E. E. E rickson, vice ch air­
field, and Joseph G. Knock, president, man; vice president, Toy N ational
Iow a S tate Savings Bank, Bloomfield. Bank, Sioux City.
D istrict 5—Since G eneral C hairm an
Tax School
E. F. B uckley is from th is d istrict and
Malcolm O. Rue, chairm an; vice pres­
all m em bers of th e com m ittee are in or ident, F a rm e rs S tate Bank, Ridgeway.
n ear Des Moines no vice chairm en Jo h n T. Baylor, Jr., vice chairm an;
have been nam ed.
president, F irst State Bank, W hat
D istrict 6— H a rry T. Huff, president, Cheer.
The State Bank, F o rt Dodge, and C.
Time Lock
R ichard C urrell, cashier, E m m et Coun­
H ugh G. N ew m an, chairm an; cash­
ty State Bank, E stherville.
ier, Iow a State Bank, Stockport.
D istrict 7—R aym ond M. A ndersen,
U. S. Savings Bonds
executive vice president, E xchange
Neal A. Sands, chairm an; president,
State B ank, E xira, and R obert W. Valley B ank & T ru st Company, Des
T u rn er, chairm an, City N ational Bank, Moines. A rth u r E. L indquist, Jr., vice
Council Bluffs.
chairm an; vice president, M erchants
D istrict 8—H arry W. Schaller, p resi­ N ational B ank Cedar Rapids.
dent, Citizens F irs t N ational Bank,
Storm Lake, and Joe T. G rant, p resi­ M ontezum a C hange
dent, F irs t N ational Bank, Sioux City.
M. L. A rendt, president, Peoples
I.B.A. Retirement Plan
Savings Bank, M ontezum a, has an ­
C harles H. W alcott, chairm an; p resi­ nounced th e resignation of R aym ond
dent, I.B.A., and president, Security A nderson, cashier for th e p ast th re e
N ational Bank, Sioux City.
years. Mr. A nderson has joined a
Service for Veterans Under G.I. Bill b ank in Phoenix, Ariz.
Mr. A ren d t also announced th a t
W. B. Griffin, Jr., chairm an; vice
president, Iow a S tate B ank & T ru st W illiam Bolen, boys basketball coach
Com pany, Fairfield. C arleton Grosz- at th e L ynnville-Sully C om m unity
kru g er, vice chairm an; cashier, C iti­ School D istrict, w ill succeed Mr. A n­
derson.
zens State Bank, Belle Plaine.

Com m ittees A p p o in ted

th eir

confidence

is

well

placed with the nation's largest executive
and professional placem ent service.

Whatever your requirements
contact us in absolute
confidence without obligation
A R V ID D. J O H N S O N
P erson al C onsultant to the B anking F ield

Cadillac
Associates, Inc.
29 E a s t M a d is o n B ld g .
C h ica g o 2, 111.
F in a n c ia l 6-9400

* W h ere M ore E x e c u tiv e s F ind T h eir P o si­
tio n s Than A n yw h ere E lse in th e W o rld .

Nort hwest ern Banker, January,


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

1962

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4

OUR 90th
t ANNIVERSARY $
YEAR

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Walnut at Fourth

Des Moines, Iowa
F .D .I.C .


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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, January, 1962

78

Iowa News
identified w ith business circles in M us­
catine for m ore th an 60 years.

W est L ib erty C hange
V ernon D. Seberg, w ho had been
farm in g n ear M ount P leasant, has
joined th e staff of th e W est L ib erty
State B ank, W est L iberty, Iowa.
B ank officials announced th a t Mr.
Seberg’s experience and background
w ill enable him to fit into th e ex p an d ­
ing program of th e b an k in serving
th e co m m u n ity ’s b an k in g needs for
farm and city custom ers.

Cedar F alls B u ild in g

D eW itt O p en H o u se
Open house w as held recen tly a t the
D eW itt B ank and T ru st Com pany
m ark in g com pletion of an expansion
and rem odeling program .
The new section plus th e rem odeled
area m ore th a n doubles th e floor space
of the bank. The e x terio r is finished
in brick and black m arble. The lobby
is decorated in tu rqu o ise and coral,
w ith w aln u t paneling. F u ll length
sheer drapes have been installed
across th e fro n t to effectively p rev en t
glare from th e m o rn in g sun.
Officers and d irecto rs include H. A.
Sm ith, president, J. Yvo F loerchinger,
executive vice p resident; Carl J. Sm ith,
vice p resident; T hom as J. Neessen,
cashier; Iv an E. B arber, a ssista n t vice
president; Jo h n R. Crowley, a ssistan t
cashier; Jo h n L. A nderson, tr u s t offi­
cer, H. L. Irw in , atto rn ey , and A. F.
Deke, director.

D isp u te G eiger T ax C laim
The In te rn a l R evenue Service con­
tends th a t Mrs. B urnice I. Geiger, con­
victed of em bezzling m ore th a n $2 m il­
lion from th e Sheldon N ational Bank,
had an incom e of a t least $125,000 a
year from stolen funds on w hich she
now owes back taxes and penalties.
C rane C. H auser, IR S chief counsel,
took th is position in th e g o v ern m en t’s
recen tly filed an sw er to Mrs. G eiger’s
claim s th a t she should not have to pay
federal taxes on th e m ore th a n $2 m il­
lion in stolen m oney.
No date has been set for a h earin g
in th e case.

ONE OF 60 se n io r lev e l com m ercial b a n k
e x e c u tiv e s se lec te d fro m a ll p a r ts o f th e
c o u n try to a tte n d th e th ir d session of th e
C om m ercial B a n k M a n a g e m e n t p ro g ra m
a t A rd e n H ouse in th e g ra d u a te school of
b u sin e ss a t C o lu m b ia U n iv e rs ity w as
M erritt J. D w igan s, vice p re sid e n t, Io w a
S ta te B a n k , D es M oines, show n a t le ft,
v is itin g w ith P rofessor B. H a g g o tt Beckhart, d ire c to r of th e p ro g ram . T his p ro ­
g ra m is d e sc rib e d as “ a sh o rt-te rm , in te n ­
sive course d e sig n ed to b rin g p a r tic ip a n ts
in to c o n ta c t w ith a f a c u lty o f a u th o ritie s
drarvn fro m b u sin ess, e d u c a tio n a n d com ­
m e rc ia l b a n k s .”

C ontracts have been aw arded for th e
construction of a new building for th e
Cedar Falls T ru st & Savings Bank, Ce­
dar, Falls, Iowa.
Bids w ere aw arded to Jen s Olesen &
Sons for the general contract, M osler
Safe C o m p a n y and U nited States
Check Book Com pany for b ank equip­
m ent, Young H eating Com pany for
m echanical equipm ent, and Sickfort
E lectric Company.
P lans include tw o drive-up windows,
increased safety box and v au lt facili­
ties, a large custom er area w ith con­
su ltatio n room s, and a com m unity
room. E stim ated cost, including fu r­
nishings and equipm ent, is $350,000.
Com pletion is expected by A ugust 1.

H eads C arroll C ham ber
Joseph H. G ronstal, president, Carroll County State Bank, Carroll, Iowa,
has been elected presid en t of th e Carroll Cham ber of Commerce.

L eaves S p en cer B ank
w as reorganized in 1933, and vice p re s­
id en t for the p ast 10 years.
Mr. Giese has been a ssistan t cashier
at th e F irs t N ational B ank in W est
U nion, Iowa, for th e p ast 15 years. He
w as nam ed to th e Sum ner post after
th e recent death of Clarence G. N ie­
m ann.

Dale B. B arrus, vice presid en t of the
Clay County N ational Bank, Spencer,
Iowa, for th e p ast six years, has re ­
signed th a t position.
s sss

MERCHANTS
MUTUAL

W illiam E. D o w n er

B O N D IN G
C O M P A N Y

W illiam E. Downer, 90, retire d p re s­
ident of th e M uscatine B ank & T ru st
Company, M uscatine, Iowa, died re ­
cen tly a t a M uscatine hospital afte r a
long illness. Mr. D ow ner had been

■y '

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■*

H o m e O ffice

2100

DIRECT MAIL ADVERTISING . INDEX

GRAND

AVENUE

ill

Des M oines, Iowa

CARDS . CHECKS . OFFICE FORMS
.

This is Iowa’s oldest surety company.
A progressive company with experi­
enced, conservative management.

P aul M. Sorg, vice p resid en t and di­
rector, has been nam ed executive vice
p resid en t of th e F irs t N ational B ank
of Sum ner, Iowa, and Riecl Giese has
joined th e b an k as cashier.
Mr. Sorg has been w ith th e b an k
since 1914, a directo r since th e b an k

We are proud of our three hundred
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.
v - !,'- !A * • L ”

k

Sale
Registers

"Accepted Sale Registers by Bank
Clerks Everywhere"
For i n t o i m a t i o n w r i t e

THE ACORN PRINTING CO.
Oakland, Iowa
Nort hwest ern Banker, January, 1962


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

—

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PRINTING . BOOK BINDING . BOOKS

1933

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S u m n er C hanges

ACORN

Incorporated

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E. H. W ARNER
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W. W. W ARNER
Vice} P r e sid e n w
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M. J. CORBIN
S ecreta ry -T re a su rer

Iowa News

79

Moira Hank Mtenrfits iront
Mleposi to r s ’ Insurance P la n
B y ORVAL SPAHN
Vice P resid en t , First State B ank
M apleton , Iowa

O NE of th e m ost im p o rta n t and
freq u en tly perp lex in g ta sk s faced
by th e farm com m unity b an k er is th a t
of advising depositors on m a tte rs not
directly involved w ith banking. The
farm com m unity b a n k e r is freq u en tly
asked for advice and recom m endations
on “W h at college should I send m y
son to?” . . . “W ho w ould you suggest
I get to handle m y legal affairs?” . . .
“W h at’s th e nam e of a good b u ild er?”
. . . and all sorts of sim ilar questions.
Of these questions, tw o of th e m ost
re c u rrin g in m y experience have been
“Should I b u y hospital and surgical
in su ran ce?” and “W h at kind of h ospi­
ta l and surgical in su ran ce do you en ­
dorse?”
As a b an k e r w ho has a definite “good
b u sin ess” m otive for serving deposi­
to rs ’ needs, I know th a t depositors do
n ot like to be “p u t off” w h en th e y ask
for advice. I find it a real d epositor­
holding “p lu s” to be able to satisfy
a custom er w ith definite an sw ers on
m a tte rs th a t p erplex him .
R ealizing th a t th e re are m an y fine
com panies in th e hospital and surgical
field, we investig ated th e B an k ers Life
C om pany’s Iow a D epositors P lan and
agreed to cooperate w ith an y of our
custom ers desirin g to b u y th e plan. Of
course, th e plan provides individual
policies offered only th ro u g h local in ­
surance agents, w hich in our case w as
a bank-connected in su ran ce agency.
Proof th a t th is w as the rig h t m ove
for us and our depositors w as evi­
denced by th e fact th a t m ore th a n 80
p er cent of th e eligible depositors
signed up u n d e r th e plan. M any of
our depositors cam e into th e b an k to
in q u ire about th e plan even before
th e re w as a chance to pay th em a p e r­
sonal visit. Such w idespread accept­
ance on th e p a rt of our custom ers, I
th in k , is am ple evidence th a t th e re ex­
ists, in m an y ru ra l com m unities, a
m a rk e t for hospital and surgical in s u r­
ance.
W h at has been our experience w ith
th e plan and w h a t benefits have ac­
crued to th e b an k thereby?
F irs t of all, we have found th a t
once depositors have signed up for in ­
surance, th e y stay signed up. Thus,
w e have tak en an o th e r step in filling
w h a t is to us our p rim a ry role in th e
com m unity—we have provided a real

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Federal Reserve Bank of St. Louis

service, one we can w holeheartedly
endorse and believe th oroughly to be
beneficial to th e purchaser. Our cus­
tom ers, in tu rn , have liked th e plan
so w ell we find our relatio n s w ith
th em even m ore closely cem ented th an
th ey have been in th e past.
The m echanics of the system are
quite sim ple. The offer is a nom inal
am o u n t of life insurance and a reaso n ­
able h ospital and surgical m edical plan
w hich can p ro tect the en tire fam ily if
desired. An im p o rtan t featu re of the
policy th a t should be em phasized is
th a t it pays its full schedule of bene­
fits despite any o th er coverage th e de­
positor m ay have, as is found in m any
policies today.
A t all tim es, the B ankers Life Com­
p any has insisted th ere m u st be a local
in su ran ce agent in th e picture. The
b an k receives q u a rte rly billing from
the com pany and m akes charges to
th e respective accounts of in su red de­
positors.
I u n d e rsta n d one of th e com pelling
forces behind the grow th of th is plan,
to th e position w here it is now avail­
able th ro u g h th e cooperation of m any
farm com m unity banks, has been the
sim plicity w ith w hich it functions and
th e generous provisions of th e plan
itself. The benefits th e depositor re ­
ceives, th e low prem ium s paid and ex­
cellent case experience are attractiv e
featu res as far as our p artic u la r bank
is concerned.
The m ark etin g m ethod, prem ium
collection sim plicity and custom er ac­
ceptance have all led to liberalizations
over earlier plans. The m ost recent
liberalization announced by B ankers
Life is th e availability of protection
beyond th e age of 65, in line w ith the
tre n d in th e in d u stry , w here form erly
in su ran ce eith er had to be term in ated
or converted. As a b an k er w ho has
had long experience in satisfying
needs, we w e l c o m e im provem ents
m ade by th e in d u stry as th ey come
along.—End.

H

A

W

K

E Y E D

!

MAX ROY. L a S a lle N a t io n a l V ice
P r e s id e n t, h a s a h a w k ’s eye w h e n it
com es t o Io w a a n d Io w a f a r m i n g .
H e a ls o is h a w k e y e d a b o u t fin d in g
w a y s a n d m e a n s to h e lp L a S a lle ’s
Io w a c o rre s p o n d e n ts . H e ’ll a c t f a s t
a n d rig ’h t on th e s p o t to s e rv e y o u .
W h y n o t g e t th e f a c t s f r o m M a x .
H e liv e s r i g h t n e a r b y in Io w a C ity ,
b u t h e m a k e s h is h e a d q u a r te r s a t
La Salle National Bank, 135 S. L a
S a lle S t r e e t , C h ic a g o 90, Illin o is .
S T a te 2-5200. M e m b e r F D IC . C om ­
p le te T r u s t S e rv ic e s.

D elb ert S. M oore
Services w ere held last m onth for
D elbert S. Moore, 89, vice presid en t of
the Corydon State Bank, w ho w as
killed w hen his clothing becam e en ­
tangled in a corn elevator on th e farm
of his son, H ow ard Moore.
Nort hwest ern Banker, January, 1962

80

Iowa News

H E F irs t F ed eral State B ank be­
cam e th e first b an k in Des Moines
to offer 4 p er cent in te re st on savings.
E. F. Peters, executive vice p resid en t
of th e bank, announced last m onth
th a t 4 p er cent w ill now be paid on
savings left in one y ear or m ore, 3%
per cent on savings left in six m onths
to a y ear and 3 p er cent on savings
left in less th a n six m onths.
* * *

T

Calvin W. Aurand, p resid en t of the
Iowa-Des M oines N ational Bank, w as
elected p resid en t of th e Des Moines
Cham ber of Com m erce last m o n th at
th e g ro u p ’s an n u al m eeting.
* =t= *
George Bell, 64, w ell know n Des
M oines in v estm en t b anker, died in
Des M oines last m onth. He had been
associated w ith Paine, W eber, Jackson
and C urtis for m any years.
* * *
A. T. Donhowe, vice president, Cen­
tra l N ational B ank & T ru st Company,
has been re-elected Iow a directo r of
th e In d ep en d en t B ankers Association,
his new th ree-year te rm beginning
J a n u a ry 1, 1962.
The n atio n al o r g a n i z a t i o n , w ith
h ead q u a rte rs in Sauk C entre, Minn.,
has a m em bership of approxim ately
6,000 banks.

Crawford C. Hubbell, vice president,
B ankers T ru st Company, has been
elected presid en t of th e W akonda
Club, succeeding Ray Murphy, Jr.
T. C. Henderson, presid en t of T. C.
H enderson & Company, Inc., in v est­
m en t bankers, w as nam ed vice p resi­
dent.
* >i= *
Robert W. Goodson has been p ro ­
m oted from assistan t vice presid en t to
vice p resid en t of th e N o rthw est Des
M oines N a t i o n a l Bank, announces
Lindley Finch, president.
* * *
M. M. McMichael, Jr., vice president,
Iowa-Des Moines N ational Bank, ad­
dressed m em bers in conference at a
regional m eeting of tru ck in g com pany
finance and accounting officers and
certified public accountants from Iowa,
N ebraska and M issouri last m onth in
Des Moines. He pointed out th a t
tru c k e rs have suffered w orking capital
pains because m any ban k ers do not
realize th a t th e grow ing tru ck in g in ­
d u stry rep resen ts a golden o pportu­
n ity for financing by local banks.—
End.

L u V erne-A lgona M erger
M erger of th e F a rm e rs State Bank,
L uV erne, Iowa, w ith the Security

State Bank, Algona, w as to have tak en
place Ja n u a ry 1, according to a pro­
posal announced early in December.
Follow ing th e m erger, both banks
w ill be know n as the S ecurity State
Bank.
U nder term s of th e proposal, assets
of th e tw o banks w ould be m erged,
and C. W. Conn, executive vice p re si­
dent of th e S ecurity State in Algona,
w ould becom e th e new p resid en t of
both banks. Jo n Nelson, p resid en t of
th e LuV erne bank, w ould become
ch airm an of th e board. The LuV erne
b ank w ould be m aintained as an office
of the Security S tate B ank of Algona.
A pproval of the m erger by the FDIC
and the state banking d ep artm en t w as
pending as th is issue of N o r t h w e s t e r n
B a n k e r w as going to press.

C. V. N e lso n R etires
C. V. Nelson, vice presid en t and
cashier, F a rm e rs & M erchants Savings
Bank, W a t e r v i l l e , Iowa, has an ­
nounced plans for re tire m e n t th is
m onth. He w as honored at a com m u­
n ity d inner last m onth follow ing his
announcem ent.

J o h n G arding
Jo h n Garding, 80, long-time p resi­
dent of th e F a rm e rs Savings Bank,
Struble, Iowa, died last m onth a fter a
sh o rt illness. He had been p resident
of th e S truble b an k for 51 y ears and
w as cashier at th e tim e of his death.

B eam an O p en H o u se
G rand opening of th e new facilities
of the F a rm e rs Savings B ank of Bea­
m an, Iowa, w as conducted last m onth.
Door prizes for ad ults and children
w ere p resen ted and refresh m en ts w ere
served.
The new building featu res a large
and colorful lobby w ith m odern lig h t­
ing, tw o priv ate offices for custom er
conferences, a sound controlled book­
keeping d ep artm ent, an a ttra c tiv e di­
re c to rs’ room, tw o vaults, an after
h o u r depository, and space for a fu tu re
drive-up window.

J o in s W est B ran ch B an k

H O N O R ED FOR SER V IC E to th e C e n tra l N a tio n a l B a n k & T ru s t C om pany, D es
M oines, a t th e h a n k ’s A n n u a l C h ristm a s P a r t y la s t m o n th , w ere, fro m l e f t : P h o to a t
le f t — W illard D ann a n d K en n eth H all b o th o f th e n o te d e p a rtm e n t, a n d E ddie A.
W olf, a.c., c o rre sp o n d e n t b a n k d e p a rtm e n t, w ho w e re p re s e n te d fine w a tc h e s fo r
th e ir 20 y e a rs ’ se rv ice . A t r ig h t— M iss A ly d ia Larson, w ho w a s g iv e n 200 silv e r
d o lla rs in re c o g n itio n o f h e r 34 y e a r s ’ se rv ice in th e sa v in g s d e p a rtm e n t. E . P .
B uckley, p re s., show n w ith M iss L a rso n , m ad e th e p re s e n ta tio n s .
Nort hwest ern Banker, January, 1962


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

H arold Stotler, form er ow ner of the
S tar G rocery in W est B ranch and m ost
recen tly w ith th e G reater Iowa Corpo­
ration, has joined th e F irs t State B ank
in W est B ranch, succeeding B ernard
D ougherty, a ssista n t cashier, w ho has
tak en a job as a ban k exam iner w o rk ­
ing out of Lincoln, Neb.

A ck ley O p en H o u se
Open house w as held last m onth at
th e new q u a rte rs of th e A ckley State
Bank, Ackley, Iowa.

Iowa News

81

C en tra l N a tio n a l Gets Com puter

I.’illHill

:

CO M PLETE A U T O M A T IO N of b o o k k e e p in g p ro c e d u re s becam e a r e a lity a t C e n tra l
N a tio n a l B a n k & T ru s t C om pany in D es M oines la s t m o n th w h e n th e b a n k in s ta lle d
i ts N a tio n a l C ash R e g is te r C om pany N C R 310 c o m p u te r a n d com p an io n p rin te r. I t is
show n in ph o to ab o v e, w ith N orm an W ilson, a sst, m gr., t r a n s it d e p a rtm e n t, a t th e con­
tro l p a n el. A t th e sam e tim e , th e b a n k re c e iv e d th e final sta g e of its P O S T -T R O N IC
a u x ilia ry e q u ip m e n t. T h is c o n sists o f th e file fe e d e r u n it a n d th e ta p e u n it, w h ic h
to g e th e r w ith th e N C R 310 a n d th e p re v io u s ly in s ta lle d en co d er a n d check s o rte r p ro ­
v id es co m p lete a u to m a tio n fo r b o o k k e e p in g p ro c ed u re s.
I n f o r m a tio n fro m th e h ig h speed c h eck so rte r is fe d in to th e 310 b y c o n n ec te d cable.
T h is a n d o th e r d a ta in th e 310 f u rn is h a p u n c h ed ta p e as w ell as a p r in te d re co rd . The
ta p e is se n t th ro u g h th e P O S T -T R O N IC w ith th e file fe e d e r u n it a tta c h e d , a n d w hen
e ac h c u sto m e r c a rd is a u to m a tic a lly fe d in to th e m ac h in e, a ll p e r tin e n t d a ta is e n te re d
b y th e b o o k k e e p in g m ac h in e, th e c a rd is r e tu rn e d in p ro p e r sequence to th e file a n d
th e n e x t c a rd se n t th ro u g h b e h in d it.
C e n tra l N a tio n a l is now p ro c e ssin g ite m s th ro u g h th is e q u ip m e n t fo r a n u m b e r of its
c o rre sp o n d e n t b a n k s in Io w a.

V alley B an k R e tir e m en t
The re tire m e n t of tw o v e te ra n p e r­
sonnel at V alley B ank and T ru st Com­
p any w as announced last m onth by
Edward Burchette, ch airm an of th e
board. T hey are Carl W. Altman, as­
sistan t cashier, and Myrtle Rude, m an ­
ager of th e collection d ep artm en t, both
of w hom re tire d D ecem ber 31.
Before going w ith V alley Bank, Mrs.
R ude had w ork ed 10 y ears for Iow a

the la tte r b ank w as m erged w ith the
Valley in 1930, she w as appointed head
of th e collection d ep artm ent, a posi­
tion she has held for 31 years.
Mr. A ltm an joined th e V alley B ank
in 1937 a fte r 35 y ears of business ex­
perience. A fter serving as head teller
he w as nam ed assista n t cashier in
1945 and since th en has handled the
opening of new accounts.

R. R o g er A lley H o n o red
R. R oger Alley, president, Ames
T ru st & Savings Bank, Ames, Iowa,
w as honored last m onth for 40 years
of service to th e b ank at a banquet.
Mr. Alley joined th e han k in 1921
after g rad u atin g from G rinnell Col­
lege. He served as a ssistan t cashier,
cashier, and vice presid en t before his
election as p resid en t last May.

H ead s C ham ber

B E ST W IS H E S a re e x te n d e d b y N eal
Sands, p re sid e n t, le ft, to Carl W. A ltm an,
a s s is ta n t c a sh ie r, a n d M yrtle Rude, w ho
a re re tirin g .

Loan and T ru st C om pany and four
years for C ontinental B ank and T ru st
Company, both of Des Moines. W hen

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

Jam es E. Coquillette, vice president,
M erchants N ational Bank, has been
elected p resid en t of th e Cedar Rapids
C ham ber of Commerce for 1962.
YOUR STA1E BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

BOB WILLIAMS,

La Salle Vice
President in charge
of advertising,
knows how to blow
the advertising horn
of plenty. Experience
with many successful
promotions proves
he’s hitting the right
notes. Need to boost
business? Why not call
on Bob? He’s at
STate 2-5200. That’s

La Salle N ational
Bank, 135 S. La Salle
St., Chicago 90, 111.
Member FDIC.
Complete Trust
Services.

F. E. DAVENPORT & C O .
OMAHA
Nort hwest ern Banker, January, 1962

82

Iowa News

L ivesto ck
Dr. Leslie E. Johnson, head, A nim al
H u sb an d ry D epartm ent, Iow a State
U n iv ersity of Science and Technology:
“In regard to livestock n u m bers for
1962 as com pared w ith 1961, it now ap ­
pears m ore hogs w ill be fed out. N um ­
bers of cattle fed out w ill be about the
same. The lam b crop w ill be sm aller,
and th ere w ill be some reduction in
p o u ltry num bers, especially tu rk ey s.
“The price of hogs is likely to be $1
to $3 below 1961 in early 1962, b u t in
th e first th ree q u arters th e price w ill
still be good. P resen t re tu rn on hog
production w ill probably fu rth e r in ­
crease th e 1962 spring pig crop. This
w ill hold prices dow n in th e la tte r
S P E A K E R S w ere, fro m le f t : W. A. W ecker, John F. M erriam, F red M a y ta g II,
p a rt of 1962. It is expected th e fall
M orey Sostrin, B race R ussell, Dr. L eslie E. Johnson, Gov. Erbe a n d C alvin W. Aurand.
pig crop of 1962 w ill show some de­
cline.”
In d u stria l D evelopm ent in Iow a
Norman A. Erbe, governor of Iowa:
“I believe th a t th ere is a tre m e n ­
dous o p p o rtu n ity available to sell
By CLIFFORD DE PUY A m erican in d u stries on th e quality
and th e ch aracter of th e people of
P u b lis h e r
Iow a and our great state. W e Iow ans
have th e ability.
T HE “Iow a B usiness T ren d s” for feeders (high priced feeder cattle, in ­
“In d u stria l grow th is also im p o rtan t
1962 w as th e th em e for th e th ird
creased feed costs).
to every businessm an in th e state. F o r
an n u a l discussion of th is subject by
“Corn farm ers w ho com ply w ith the th e re ta ile r it m eans m ore people w ith
seven p a n e l i s t s a t th e Iowa-Des 1962 feed g rain program m ay get a m ore incom e to buy goods. F o r the
Moines N ational B ank m eeting and h ig h er su p p o rt price on th e 1962 corn m an u factu rer it m eans a h ealth ier
luncheon for 400 guests held last crop, p erhaps 8-10 cents per bushel. state economy, and low er taxes be­
m onth in Des Moines.
S ecretary F reem an appears to be con­ cause of a b ro ader tax base.”
sidering th is move.
In addition to th e sp eakers a t the
Calvin W. Aurand, president, Iowa11 a.m. g athering, Calvin W. A urand,
“On th e o ther side of th e picture, it’s Des M oines N ational Bank:
president, spoke briefly at noon on th e
possible th a t production costs w ill be
“W e are operating in a w orld m oney
m oney m ark et and in te re st rates.
som ew hat higher, b u t not drastically m arket, not a dom estic m arket, and
A resum e of w h at each sp eaker said, so. The farm squeeze is still w ith us.” we m u st m anage our fiscal and m one­
in th e order of his appearance, fol­ U tilities
ta ry affairs in a m an n er th a t w ill
lows:
John F. Merriam, chairm an of the build confidence in th e dollar in the
board, N o rth ern N atu ral Gas Compa­ w orld m oney m arkets. W e m u st take
C onstruction In d u s tr y
th e necessary, b u t difficult steps, to
Walter A. Wecker, president, M ar­ ny:
“W ith trem endous m ark et grow th p rev en t th e continued flow of gold
q uette C em ent M anufacturing Com­
indicated and possibly a speed-up in from our reserv es to o th er countries
pany:
th
e re g u lato ry area, I feel confident around the globe.
“Iow a’s to tal co n stru ctio n n ex t y ear
“A m ost drastic occurrence took
will rise about 3.7 p er cent. T his com ­ th a t th e outlook for utilities in 1962
place w hen th e F ed eral R eserve Board
p ares w ith a d eterm in atio n of only a is a b rig h t one.”
and th e F ed eral D eposit In surance
slight state-w ide im provem ent based M anufacturing
Fred Maytag II, chairm an of the
C orporation announced th a t com m er­
on our evaluation of th e findings in
cial banks, as at J a n u a ry 1, 1962, could
th e grassro o ts su rv ey we conducted.” board, The M aytag Company:
“F o r th e y ear ahead, we are looking increase th e allow able ra te paid on
R etail M erchandising
for a continuation of the im provem ent savings and tim e deposits to a m axi­
Morey Sostrin, president, Y ounker in in d u stry sales w hich began d uring
m um of 4 per cent, if th e funds w ere
B rothers, Inc:
th e second q u a rte r th is year. T here
on deposit for 12 m onths or longer.
“We expect a 3 to 5 p er cent sales
is, how ever, no basis for expecting a The reaction to th is has been about as
increase for th e sp rin g of 1962. Prices
real boom in our industry. A 5 to 7 expected. Some banks quickly w el­
of th e kinds of m erchandise we sell p er cent increase in 1962 w ould still
comed th e op p o rtu n ity and others
are expected to rem ain a t about c u r­ produce totals som ew hat below the
have indicated th a t th ey w ill consider
re n t levels.”
1959 figures and considerable below th e m atter, w hile some have expressed
A griculture
th e peak year for our in d u stry w hich
opposition. The p attern , how ever, dif­
Bruce Russell, president, F a rm e rs w as in 1956.
fers from th a t w hich prevailed in 1957
N ational Company:
“A pplying th is n a t i o n a l in d u stry w hen the m axim um allow able rate
“F o r 1962 is looks about like th is to forecast, then, to Iow a business tren d s w as increased to 3 p er cent. Now
me:
for 1962, we can expect to see an in ­ th ere appears to be m ore sm all banks
“Som ew hat low er average prices for crease in hom e lau n d ry appliance w hich welcome th e rate increase. It
hogs.
sales. W e expect th a t th is increase
seem s to us th a t it is a m a tte r w hich
“N arro w er profit m argins for cattle w ill be m odest.
m u st be determ ined by each b an k in-

E xperts E xpress Views
On ita si ness for l i Hi2

Nort hwest ern Banker, January,


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Federal Reserve Bank of St. Louis

1962

83

Kirk Gross Bank Planning Experts Co-ordinated
the Entire Building Program . . . from the Dra­
matic Exterior to the Modern Interior, the Fur­
nishings and the Exciting Color Decor . . .

COLLEGE
SAVINGS
BANK
o f A m e s, Iow a

T h e e n la r g e d , re m o d e le d , r e f u r n is h e d C ol­
le g e S a v in g s B a n k is a n o t h e r o u ts ta n d in g
e x a m p le o f th e s p e c ia liz e d p la n n in g t h a t
fin a n c ia l in s ti tu ti o n s c a n e x p e c t w h e n th e y
c o n t r a c t f o r th e s e rv ic e s o f b a n k e x p e rts
fr o m th e K IR K G R O S S C O M P A N Y . W h e n
tim e is e s s e n tia l a n d co s ts a r e a f a c to r ,
y o u w ill s a v e n e e d le s s w o r r y b y d is c u s s in g
y o u r b u ild in g o r r e m o d e lin g p la n s w ith a
K ir k G ro ss c o n s u lta n t.
Mr. Dean A . Knudson, president
College Savings Bank, said:

of

N ew
T e lle r
c o u n te r s
and
o rg a n iz e d
office
s p a c e in c r e a s e efficien ­
cy a n d im p ro v e c u s to m ­
e rs s e rv ic e .

the

“ . . . O ur new m o d ern fr o n t and practical,
y e t pleasing a tm o sp h ere o f the n ew in te r ­
ior speak h ig h ly o f the specialists th a t
p a rtic ip a ted in the e xp a n sio n program .
These m e n are qualified by tr a in in g , ex­
perience and a b ility to su p ervise the e n tire
program , w ith un u su a l speed a n d m in i­
m u m o f business in te rru p tio n s.

Yes, Kirlc Gross B a n k P la n n in g Specia lists
enabled us to accom plish th is rem odeling
p roject w ith o u t loss o f tim e or added e x ­
pense.”
Old Lobby

G et th e
c isio n .
fin d o n e
— a t no

f a c t s b e fo re y o u r e a c h a fin a l de­
. . a le t t e r o r te le p h o n e c a ll w ill
of o u r e x p e rts re a d y to a s s is t you
o b lig a tio n , o f co u rse.

C u s to m e rs w ill e n jo y
th e n e w , e n la r g e d s e r v ­
ic e a r e a a n d sp a c io u s
n e w offices t h a t w ill
p ro v id e f a s t, efficien t
flow o f tra ffic .

Functional Bookkeeping Room

I 10 East Seventh Street
Waterloo, Iowa

•

ADams 4-6641

Kirk Gross Features Shaw-Walker, World's Largest Manuf act urer of Bank-Engineered Equipment and Furniture


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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, January, 1962

84

Iowa News

WANT ADS

Rates 20 cents per word per
insertion. Minimum: 10 words.

NORTHWESTERN BANKER
306 15th St., Des Moines, Iowa

W ANTED

O rvin G. U hr

M an ex p erienced in o p e ra ­
tions and personnel. M edium
sized b a n k in w estern W ash­
ington.

W rite

XBN,

dividually, tak in g into full considera­
tion its desire, or need, for additional
deposits, as w ell as its ability to safely
in v est these funds. Local com petitive
situ atio n s are bound to influence deci­
sions in th is area.
“It w ould app ear th a t th e savings
increase will serve to stabilize rates
charged by lenders and, in fact, m ay
have th e effect of increasing rates
slightly in the n ear fu tu re .”—End.

c/o

NORTHW ESTERN
BANKER

Orvin G. U hr, 64, presid en t of the
S ecurity Savings Bank, Eagle Grove,
died of a h e a rt attack at th e b ank last
m onth.
Mr. U hr sta rte d w ith the b ank in
1916 as a bookkeeper. He w as nam ed
assista n t cashier in 1920; cashier in
1925, and executive vice presid en t in
1942. He becam e presid en t in May,
1960, following th e death of Ben Olson.

306 15tli S treet
Des M oines 9, Iow a

B lu egrass B an k ers E lect
A rt Duben, vice p resid en t and cash­
ier, Iow a State Savings Bank, Creston,

INDEX OF
ADVERTISE IKS
JANUARY, 1962
A

A c o r n P r i n t i n g - C o m p a n y .................................. 78
A d v a n t a g e F i l m S a l e s I n c ....................................85
A m erican N atio n al B a n k an d T ru st
C o m p a n y — C h i c a g o ............................................ 19
A m erican T r u s t an d S av in g s B a n k —
D u b u q u e ..................................................................... 75
It

B a n k o f A m e r i c a ...................................................... 33
B a n k B u i l d i n g a n d E q u i p m e n t C o r p . . . .13
B a n k o f M o n t r e a l ................................................... 55
B a n k e r s S e r v i c e C o m p a n y ................................22
B a n k e r s T r u s t C o m p a n y — D es M o in es ..7 0
B l a c k S a l e S y s t e m ....................................................69
B u s i n e s s F u r n i t u r e C o r p o r a t i o n ................... 15

C

C a d i l l a c A s s o c i a t e s , I n c .........................................76
C e n t r a l B a n k a n d T r u s t C o m p a n y —D e n v e r .......................................................................... 57
C en tral 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 .....................................20
C e n t r a l S t a t e s H e a l t h a n d L i f e C o ............... 87
C h a s e M a n h a t t a n B a n k .......................................17
C h i l e s - S c h u t z C o m p a n y ....................................... 62
C h r i s t m a s C l u b A C o r p o r a t i o n ......................11
C l i n t o n , E . G., C o m p a n y , T h e ........................45
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 ...................................................... 39

I>

D a v e n p o r t , F . E ., C o m p a n y ......................6 2 , 8 1

Iowa, has been elected p resid en t of
th e B luegrass B ankers A ssociation.
O ther new officers are Royce Davis,
vice president, S ecurity State Savings
Bank, M ount A yr, vice president; Dale
J u r g e n , m a n a g e r , Clearfield office,
State Savings Bank, Bedford, secre­
tary , and Jim Hoffman, Okey-Vernon
N ational Bank, Corning, treasu rer.

L aw yer’s F oru m S u c c e ssfu l
Commerce T ru st Company, K ansas
City, w as host to m ore th a n 600 law ­
y ers last m onth
w ho accepted th e
b a n k ’s invitatio n
to its L aw y er’s
F orum . The oc­
casion, th e first of
its kind in th is
area, proved h ig h ­
ly successful.
F eatu red speak­
er w as Professor
A. Jam es Casner,
associate dean
and W eld professor of law a t H arv ard
Law School.
D e L u x e C h e c k P r i n t e r s , I n c ...............................14
D i e b o l d , I n c ..................................................................... 7
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 .....................38
D o w n e y , C. L., C o m p a n y .....................................16
D r o v e r s N a t i o n a l B a n k ....................................... 73

F

F a r m B u s i n e s s C o u n c i l I n c ................................. 85
F ir s t C o n tin e n tal N atio n al B an k and
T r u s t C o m p a n y — L i n c o l n ............................. 67
F i r s t N a t i o n a l P a n k — C h i c a g o .................... 4
F i r s t N a t i o n a l B a n k — D e n v e r ........................40
F i r s t N a t i o n a l B a n k — K a n s a s C i t y ........... 36
F i r s t N a t i o n a l B a n k — O m a h a ........................ 65
G
G r o s s , K i r k , C o m p a n y ..........................................83

11
H a l s e y , S t u a r t a n d C o m p a n y , I n c ..................41
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 ...................35
H u m m e r , W a y n e , a n d C o m p a n y ...................10
I

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 ................... 88

K

K o c h B r o t h e r s ..............................................................78

Ij

L a M o n t e , G e o r g e a n d S o n .................................. 34
L a S a l l e N a t i o n a l B a n k .................................. 7 9-8 1
L i v e S t o c k N a t i o n a l B a n k — S i o u x C i t y . . 52

>1

M a r q u e t t e N a t i o n a l B a n k .................................. 74
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . .7 8
M e r c h a n t s N a t i o n a l B a n k ................................. 2
M errill L y n ch , P ierce, F e n n e r an d
18
S m i t h .........................................................
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 n ............. 50
M u tu al F ire a n d A u to m o b ile In s u ra n c e
C o m p a n y ..................................................................... 72
N
N a tio n a l B a n k of C o m m erce T r u s t an d
S a v i n g s ........................................................................66
N a t i o n a l C a s h R e g i s t e r C o m p a n y .............. 37
N a t i o n a l R e s e r v e L i f e I n s u r a n c e Co. . . . 4 3
N o r t h e r n T r u s t C o m p a n y ................................. 3
N o r t h w e s t e r n N a t i o n a l B a n k .......................... 46

O

O m a h a N a t i o n a l B a n k ............................................ 63

P

P r o t e c t i o n E q u i p m e n t C o m p a n y ...................51

11

R e c o r d a k C o r p o r a t i o n ....................................... 8-9
R o y a l B a n k o f C a n a d a ....................................... 58

S

S t. P a u l W e s t e r n C o m p a n i e s .......................... 49
S te b b in s , R ic h a r d , a n d A s s o c ia te s Inc. ..1 0
S tudley, S h u p e r t T r u s t I n v e s tm e n t
C o u n c i l ........................................................................ 44

IJ

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 . . . . 68
U n i t e d S t a t e s N a t i o n a l B a n k ...........................60
V
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 ................................................................ 77
V a l l e y N a t i o n a l B a n k — P h o e n i x .................. 6

w

W e s t e r n M u t u a l I n s u r a n c e C o m p a n y . . . .45

Nort hwest ern Banker, January, 1962


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Federal Reserve Bank of St. Louis

85
ers A ssociation, Box 152, H arrisb u rg ,
Pa.

The Bankers’ Market Place
A Page Telling What’s N ew for Banks and Bankers
E ach m o n th the B a n k e rs’ M arket Place w ill bring you listings of new
products, specialty item s, banking equipm ent, and g ift item s w h ich w ill
help you and yo u r staff do a better job. T his is the selection for this m onth.
12-PAGE booklet, w hich w ill ap ­
p ear as p a rt of an ad v ertisem en t
in th e M arch 17 issue of The Saturday
E v en in g P ost on b eh alf of th e F o u n ­
dation for C om m ercial B anks, is being
m ade available for d istrib u tio n by
banks to th e ir custom ers.
The booklet, en titled “How to M ake
th e Most of Y our M oney,” o utlines all
services of b an k s in clear lay m an ’s
term s. The q u a n tity p rin tin g neces­
sary for The S aturday E v e n in g Post
m akes it possible for th e F o u n d atio n
to m ake additional copies available at
only 3 cents each, reg ard less of q u a n ­
tity ordered. The price includes im ­
p rin tin g of th e local b a n k ’s nam e.
D etailed i n f o r m a t i o n and order
blanks can be obtained from th e F o u n ­
dation for Com m ercial B anks, P h ila ­
delphia N ational B ank B uilding, P h ila­
delphia 1, Pa. L. M. Schw artz, p re si­
dent, Citizens S tate B ank, Paola, Kan.,
is ch airm an of th e F oundation.

A

n p H E B ank B uilding and E q u ip m en t
JL C orporation of A m erica, St. Louis,
has ju s t released its fo u rth in a
series of research studies. It is en ­
titled “W h at H appens to B usiness
A fter a B ank M odernizes.” T his latest
stu d y adds proof to re su lts reflected in
previous studies th at, regardless of
v ary in g b u siness conditions, banks
th a t m odernize or build new q u a rte rs
co n sisten tly m ain tain a g ro w th p a t­
te rn far g re a te r th a n th e natio n al a v e r­
age.
Copies of th e booklet can be ob­
tain ed from D. E. Mosby, vice p re si­
dent, B ank B uilding and E q u ip m en t
C orporation of A m erica, 1130 H am pton
A venue, St. L ouis 10, Mo.
HE second edition of th e 1962
O utboard M otor T rade-In Guide
will be m ailed to p u rc h a se rs of th e
first edition som etim e in F eb ru ary .
P rice for b o th editions is $3.45 from
ABOS P ub lish in g Com pany, 103 G uitar
B uilding, Columbia, Mo. T he second
edition w ill reflect changes in price
evaluation s w hich occur d u rin g the
fall and w in te r m o n th s and w ill con­
tain list prices on all 1962 outboards.

ets, a m echanical pencil, m em o pad,
la te st postage rates, and a sm all postal
scale. D etails on im p rin tin g and q uan­
tity prices are available from Postam ic, D ep artm ent 175, 1549 Belfield Ave­
nue, P hilad elphia 41, Pa.
W ID E carriage adding m achine
th a t com bines both posting and
figure w o rk has been announced by
V ictor A dding M achine Co. The desksize m achine has 3% inches of car­
riage space, choice of 10-key or full
keyboard, and autom atic credit b al­
ance w ith to tal or sub-total key.
Changes f r om tape to business form s
in 10 seconds.

A

S E R IE S of new s releases in
n ew spaper style explaining the
p rep ared n ess p r o g r a m is available
from The Slayton Company, 6 N orth
M ichigan A venue, Chicago 2, 111. The
m a te ria l is offered as stra ig h t new s
releases, g host w ritte n articles, or for
use in advertising.

A

H E P en n sy lv an ia B ankers Asso­
ciation has em barked upon a cam ­
paign to educate th e public as to w h at
th e proposed F ed eral tax on in terest
and dividends w ill do to th e “little
people” (elderly people and children).
T h eir p rogram m aterial can be
adapted to natio n al use. F olders and
ad m ats are used to im plem ent th e
program . F in an cial in stitu tio n s w ish ­
ing to cooperate should w rite for sam ­
ples and lot prices to R obert C. F orrey,

T

|o W A pALLS 5 T ATE 0 j A N K

H E N ebraska Neon Sign Com pany
of Lincoln, Neb., has developed a
new m erchandising area in connection
w ith a precision, electro-m echanical
“jum p clock.”

T

NAME
OF YO U R

BANK
J O IN O U R
X M A S CLUB

JU M P CLOCK

As illu strated in the accom panying
photograph, th e “jum p clock” is on
one side of th e sign w hile th e other
side featu res a plexiglas changeable
area to be used for different messages.
The low er portion of th e sign revolves
so th a t both faces of th e display can
be view ed from any direction. T he re ­
volving action also a ttra c ts atten tio n
to th e sign display.
New im provem ents have m ade it
possible to reduce in stallation and
m aintenance costs. The am ount and
type of w iring from th e building to
th e sign also has been im proved,
bringing a still g re a te r savings to the
custom er, according to th e m anufac­
tu rers.
A com plete line of designs is avail­
able so the clock display coincides
w ith th e a rch itectu re of th e bank.

fi

T

“POCKET post office” co ntaining
nine useful item s is available as
a p ractical p rem iu m or bu sin ess gift.
Included in th e package are a stam p
case, address-m em o book, zippered
m oney pocket, tw o e x tra u tility pock­

A


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

OUTSTANDING CHOICE ^
J f ° O F OUTSTANDING BANKERS

The bank newsleteer for modern agriculture
—providing an excellence of quality that
elevates bank promotion to the full service
level. Preferred by 8 out of ¡0 farmers be­
cause it helps with their "money matters."

the FARM PICTURE

Dept. 43
P.O. Box 221
Urbana, il!.

SALES TESTED animated television spots
selling bank services are available to your
bank, even if you have a limited advertis­
ing budget. By syndicating these effective
films on a regional basis, tremendous sav­
ings are realized for the individual banks.
Development expense is spread over many
markets instead of being paid by one spon­
sor of a single message. Yet, it lets your
bank achieve the effect of a custom-made
commercial. For complete details on how
your bank can use effective TV commercials
write: ADVANTAGE FILM SALES, INC.,
736 North Seward Street, Hollywood 38,
Calif.
N o rth w e ste rn

B an k er, J a n u a r y ,

1962

86

R em em ber This One

Benefits H ereafter

Mistaken Identity

Conductor: W h at are you doing
w ith those tow els in y o u r suitcase?
P assen g er (w ith presence of m ind):
Oh, th e y are some I used th e last tim e
I w as on th is train . I h ad th em
w ashed and b ro u g h t back.

The m in ister had tak en a tra in trip
and w as seated n ex t to a m an who,
d u rin g a conversation, introduced him ­
self as an in surance salesm an. The
m in iste r quipped th a t he, too, w as an
in su ran ce salesm an. He explained fu r­
th e r w ith o u t a sm ile th a t his firm w as
“E te rn a l Life.” The nam e d idn’t rin g
a bell w ith th e first salesm an, w ho
continued to boast on th e good points
of his com pany.
The m in ister topped those claim s
though, w hen he announced th a t his
firm w as th e only one in th e w orld
w h ere th e in su red collected on his
ow n policy even afte r death.

The seven-year-old dau g h ter of a fa­
m ous judge alw ays introduced herself
w hen asked h er id en tity as “Judge
B aker’s d au g h ter.” H er m o th er de­
cided to correct h e r firm ly about it on
th e grounds th a t it sounded too snob­
bish. “A fter th is,” said h e r m other,
“ju st refer to yourself as M ary B aker.”
Several days later a colleague of th e
judge leaned over and said to her,
“A ren ’t you Judge B ak er’s little g irl?”
“I alw ays th o u g h t I w as,” answ ered
th e little girl, “b u t m o th er says n o t.”

Boy, That's Lucky
A w om an fell overboard in th e m id­
dle of th e A tlantic and a sh a rk came
rig h t up to her, took one look and
w ent aw ay. F o rtu n ately , it w as a
m an-eating shark.

W ho Can Tell?
He: Is m y face d irty or is it m y
im agination?
She: Y our face is clean, b u t I d o n ’t
know about y o u r im agination.

W orking for the G iver nine nt
A ta x p a y e r is one w ho does n o t
have to pass a Civil Service exam ina­
tion to w o rk for th e governm ent,
right?

W hat Else?
R etu rn in g from church, th e m eek
little lady said to h e r friend, “The m in ­
iste r k ep t talk in g about th e epistles
th is m orning. I ’m asham ed to adm it
it, b u t I don’t th in k I know w h a t th e
epistles are.”
“Oh m y dear, y o u r ignorance is so
refresh in g ,” laughed h e r com panion.
“I th o u g h t th a t everyone knew th a t
th e epistles are th e w ives of th e
apostles!”

E v e ry b o d y Wins?
A p reach er saw a b eau tifu l newlyp ainted w h ite fence and could n o t re ­
sist w ritin g on it in large letters: “I
p ray for all.”
One of th e candidates for h igh office
d u rin g th e recen t election saw th e
m essage and could n o t re sist w ritin g
below it in large letters: “I ’ll provide
ev ery th in g for all.”
On his w ay hom e from e x tra h o u rs
in th e office (for no overtim e pay),
Mr. Sm all B usinessm an saw th e tw o
m essages . . . and could n o t re sist w rit­
ing in large letters: “A nd I ’m th e poor
guy w h o ’s going to have to pay for it
all.”
Nort hwest ern Banker, January, J962


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

Our Best Defense

Clean U p Fund

No enem y nation could tak e th e risk
of invading us. Our juvenile delin­
q uents are too w ell arm ed.

“I h ear th a t Mike raced a tra in for
a grade crossing last week. Did he get
across?”
“Sure did. H is w idow bought it out
of th e in surance m oney.”

R aving Beauty: G irl w ho finishes
last in th e Miss A m erica ta le n t con­
test.

C O N V E N T IO N S
January 18, Minnesota Bankers Asso­
ciation, Mid-Winter Conference,
Leamington Hotel, Minneapolis.
January 22-23, ABA National Credit
Conference, 14th Annual, LaSalle
Hotel, Chicago.
February 5-7, Mid-Winter Trust Con­
ference, 43rd Annual, WaldorfAstoria Hotel, New York.
March 26-28, National Installment
Credit Conference, Conrad Hilton
Hotel, Chicago.
April 16-18, NABAC Northern Re­
gional Conference, Abraham Lin­
coln Hotel, Springfield, 111.
April 30-May 2, Independent Bankers
Association, 28th Annual Conven­
tion, Pittsburgh - Hilton Hotel,
Pittsburgh, Pa.
May 16-19, American Safe Deposit
Association, 31st Annual Conven­
tion, Sheraton-Palace Hotel, San
Francisco.
May 17-19, South Dakota Bankers
Association Annual Convention,
Hotel Gardner, Sioux Falls.
May 24-26, North Dakota Bankers
Association, Annual Convention,
Plainsman Hotel, Williston.
May 28-June 1, American Institute of
Banking, Annual Meeting, Chase
Hotel, St. Louis.
June 5-6, Minnesota Bankers Associa­
tion, 72nd Annual Convention,
Leamington Hotel, Minneapolis.

Vocalist

June 11-12, Stonier School of Banking,
Rutgers University, New Bruns­
wick, N. J.
June 14-16, Montana Bankers Asso­
ciation, 59th Annual Convention,
Many Glacier Hotel, Glacier Na­
tional Park, Montana.
August 6-24, National Trust School,
Northwestern University, Evan­
ston, 111.
September 23-26, American Bankers
Association, 88th Annual Conven­
tion, Atlantic City, N. J.
October 11-12, Nebraska Bankers
Association, 65th Annual Conven­
tion, Cornhusker Hotel, Lincoln.
October 14-17, Robert Morris Asso­
ciates, 48th Annual Conference,
Waldorf-Astoria Hotel, New York.
October 14-18, FPRA, 47th Annual
Convention,
Chalfonte - Haddon
Hall Hotels, Atlantic City, N. J.
October 21-24, Iowa Bankers Asso­
ciation, 76th Annual Convention,
Hotel Fort Des Moines, Des
Moines.
October 21-23, ABA Regional Mort­
gage Workshop Meeting, Hotel
Leamington, Minneapolis.
October 22-24, NABAC, 38tli Annual
Convention, Americana Hotel, Bal
Harbour, Fla.
November 8-9, Mid-Continent Trust
Conference, 31st Annual Meeting,
Hotel Drake, Chicago.
November 12-13, National Agricultural
Credit Conference, 11th Annual
Conference, Sheraton - Fontanelle
Hotel, Omaha.

1962 brings

service

For three decades, Central States
Health & Life Co. of Omaha has worked
exclusively through financial institu­
tio n s... pioneering consumer credit in­
surance and life, health, accident and
hospital insurance through banks. For
some companies, each anniversary is
“ just another candle on the cake.” But
bankers will recognize Central States’
long experience in their field as invalu­
able in assuring them that their custo­
mers will be dealt with in the manner
bankers appreciate. We hope this year
we can number your bank among the
more than 700 banks we now serve.

Ce n t r a l S t a t e s
H e a l t h & L i f e Co.
o f O m ah a
T. LESLIE KIZER, President
CENTRAL STATES INSURANCE BUILDING
HOWARD AT 18TH STREET • OMAHA


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

From all of us to all of you

Jerry Nelson, Vice President

Geo. Harnagel, Ass’t Cashier

Bob Buenneke, Ass’t Cashier

Best w ishes... and a standing invitation
A long w ith w h a te v e r else th e N ew Y ear m ay bring, we
hope it brings you ev ery k in d of good fo rtu n e. E sp e ­
cially, good h e a lth an d good fellow ship.
F o r ourselves, th e b est w ish we can hold for th e com ­
ing y e a r is t h a t we m ay get to know you even b e tte r,
an d find ev er-im p ro v in g w ays to h an d le y o u r business.
T o th a t end, we offer th is sta n d in g in v ita tio n for 1962:
Come in and visit us.

P lease d o n ’t w ait for a form al in v itatio n . W e know
th a t all of you are busy, so ju s t ta k e an ho u r or tw o
w henever y o u ’re in D es M oines, and drop in w ith o u t
a n y prelim inaries. I f you h a v e n ’t been th ro u g h our
b a n k before, w e’ll give you th e to u r.
M ainly, w e’d like to ta lk a b o u t y o u r p lans . . . and
find o u t w h a t we can do to help m ake th is th e g reatest
y ear ever for you.

We’re here to help you get what you want

Iowa-Des Moines •N a t i o n a l B a n k
6th and Walnut, Des Moines 4, Iowa


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

Member Federal Deposit Insurance Corporation

CHerry 3-1191