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♦NFLATION: Bank Capital https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Unemployment The Federal Reserve Meet the Coin and Currency people who can make MNB work for you. Tammy Griswold Ron Bouska Mike Kell Steve G uinta Dave Matejka Leo McLain Assistant Vice President As a member of the Federal Reserve, MNB has immediate access to coin and currency. That’s good for us, and as an MNB correspondent bank, it’s also good for you. The friendly, fast-working team in our Coin and Currency Department will see that your needs are met in a hurry. Just specify your requirements — loose or wrapped coin, all de nominations of currency and even two dollar bills! We will ship it to you, or see that it is ready if you’d rather pick it up at our secured inside loading area. The number to call is 3 1 9 -3 9 8 -4 3 3 1 or our toll free number is 1 -800-332-5991. Make sure you get the best by calling one of MNB’s Correspondent Bank Services experts. John E. Mangold Terry M. Martin Jerry N. Trudo Mark W. Christen Dale C. Froehlich Senior Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President (319) 398-4313 (319) 398-4320 (319) 398-4306 (319) 398-4315 (319) 398-4314 OUR PEOPLE MAKE IT WORK Merchants National Bank C edar Rapids, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A 'BANKS OF IOWA' BANK 64 times a year >• ‘the one magazine for the local banker’ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES MOINES, IOWA 50309 Enjoy Please send me the Northwestern Banker — 12 monthly magazines and 52 weekly newsletters. Combination rate: □ One year $12 □ Two years $22 □ Three years $30 NOBMWESTERN 12 Monthly Magazines 52 Weekly Newsletters Name __________________________ Title____________________________ Bank___________________________ Address________________________ City_________ State______ Zip_____ Authorizing Signature_____________ □ □ □ Enclosed is a check Please bill me Please bill bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30615th St. Des Moines, IA 5ÿJ09 t Somebody has to set the standards« Pebble Beach. Few other courses in the world demand so much from the player. Skill. Accuracy. Concentration. Execution. For the greats of the game, it has become a fitting test where champions reign. It's the standard. At Deluxe, the test is to meet the standard that weVe set for ourselves. Accuracy and consistent execution. And, that takes all the skill and concentration at hand. But then, those are our demands. The challenges we meet. At Deluxe, it;s par for the course. CHECK PRINTERS, INC. SA LES HDQTRS. • P.0. BOX 3399. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ST. PAUL, WIN. 55165 • STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST o • W U d / t C a n / c w m m v c U 'h ^ p 0/ vetcrcvvr acj^ expert to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Omaha National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 NORDWESTERN T ìa H K t l/ JULY 1977 • 84th Year No. 1366 OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES tv > L MEMBER OF AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION ON THE COVER 25 Pictured are four unique bank buildings: Top left: Valley Bank, Pocatello, Idaho, by Bank Building Corp., St. Louis, Missouri. Center left: First National Bank, Ft. Dodge, Iowa, by E. F. Kooker & Assoc., Spencer, Iowa. Lower left: National Bank of Waterloo, Iowa, Interiors by Kirk Gross, Waterloo, Iowa. Right: Palmer-Amerlcan National Bank, Danville, Illinois, by Illinois Bank Building Corp., Olympia Fields, Illinois. 25 Planning to build or remodel? Bankers give their ideas based on experience OTHER FEATURES 28 Inflation vs unemployment 9th Fed President Mark Willes states his position 31 Inflation shrinks bank capital Fed Governor Henry Walllch analyzes the problem 34 Inflation and the Fed Columnist Wayne Dobson reviews Fed actions 72 73 75 76 78 83 86 DEPARTMENTS 8 14 18 37 55 60 64 68 Bank Promotions Corporate News Convention Calendar Minnesota Conv. Report Illinois Conv. Report North DaKota Conv. Report Colorado Conv. Report Wyoming Conv. Report South Dakota Montana Nebraska Omaha Lincoln Iowa Iowa Indepen dent Conv. Des Moines Iowa Group Meeting Report Bankers Market Place In the Directors’ Room Advertisers’ Index 92 95 97 98 98 NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309 Editor Publisher Advertising Assistant Sherri Nielsen Business Manager Ben Haller, Jr. Malcolm K. Freeland Auditor Mildred Barnes Phone 515—244-8163 Field Representative AI Kerbel Associate Editor Linda L. Rhein Mike Freeland Field Representative Paul Masters Field Representative Glen Hicks No. 1366 Northwestern Banker (Publication Number 397620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.00 per copy, $12 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, change of address Form 3579, manuscripts, mail items)to above address. N ofor rth w e s te r n B a n k e r, J u ly 1 9 7 7 Digitized FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L Why banks suggested A tn a Money for cash flow in sinks and an acquisition in food. Because he lacked a strong cash flow — and couldn’t increase his bank credit line — the plumbing supply wholesaler was missing sizeable trade discounts. The bank suggested /Etna Money? Secured by accounts receivable and inventory, we quickly supplied the needed working capital in participation with the bank. Result? A more profitable operation for the wholesaler. And the bank retained a good customer. A food processor wanted to sell off a sub sidiary, and three executives wanted to buy it. But where would the money come from? Solution? A bank mentioned /Etna Money. We provided a multi-million dollar loan secured by plant, equipment, inventory, and accounts receivable. Result? A smooth acquisition. And a new customer for the bank. /Etna Money. It’s flexible and quickly available for your customers. It’s a workable alternative for you. Call us. You get action with /Etna because our business is /Etna Business Credit, Inc. to help your business. • O ne o f the /E T N A LIFE &. C A S U A L T Y companies Although certain identifying facts have been changed to protect client confidentiality, these are authentic examples of /Etna Money at work. 530 North W ater Street, Milwaukee, WI 53201 (414) 272-3102 - 1717 Cargill Building, Minneapolis, MN 55402 (612) 339-2222 •One Post Street, San Francisco, CA 94104 (415) 956-4373 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rthw estern B a n k e r , J ul y 1977 8 B an k P ro m o tio n s ROM OTIONS a n d o t h e r an nouncements have been made by the following banks: American N al i onal Bank, Chicago: T h e o dore C. Axton a n d J e r r y G. Langley h a v e been e l e c t e d v i c e presidents. Named s e c o n d vice presidents are Richard E. Akin, c o r r e sp o n d en t; Nicholas A. Alexander, trust; Kent A. Arnett, international; James D. Bren ner, John E. Cline, Phillip J. Pierchala, commercial; Jonathan P. Hecht, Elk Grove business service office; William C. Pettingell, real estate, and Donald E. Harris, Michael C. Keeling and Anthony A. Scerba, operations. P a 5-character message center! Words change or travel. With time and temperature. No w even the smaller financia l institu tio ns can afford a message center display fo r a d v e rtis in g or p u b lic s e rv ic e . Dakt ro nics Venus 500 has 32 c olu mns of lamps with seven 15-watt bulbs per column for displaying 18" high characters. Flash on as many as 16 words of five letters, or less, plus time and temperature or run a traveling message of up to 16 words of up to 16 characters each. (The word " C o n g ra t u la t io n s " is sh o w n trav e lin g in the photo.) Plus time and temperature M e s s a g e s a re p r o g r a m m e d f r o m a desktop ke yboard co nsole that lets you see the message on the screen before it appears at the message center. At far less investment than our standard 10-character display. Write for literature and prices - INC. D DAKTRONICS, Box 299-K Brookings, S.D. 57006 DAKTRONICS INC Telephone 605/692-6145 N o r t h w e s t e r n B a n k e r , J uly 1 9 7 7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R. E. AKIN J. G. LANGLEY New officers elected are: V. John Chalupa, second vice president; Terry G. Beaudry, Jonathan S. Frank and William D. Norwell, trust officers; John M, Campbell, credit officer; Charles D. Glendenin, operations offi cer, and Thomas J. McGoldrick, sys tems officer. Mr. Axton, who was elected vice president in the correspondent bank ing division, joined the bank in 1968. He was elected loan officer in 1971 and second vice president in 1975. Mr. Langley joined the bank in 1971, was elected loan officer in 1973, and sec ond vice president in 1975. His re sponsibilities are in the commercial banking department. Commerce Bank of Kansas City, Mo.: The following promotions have been announced: Thomas L. Steffens, vice president, assistant sales manager, bond department; John G. Henderson and Terence A. Mercurio, assistant vice presidents, bond department; James M. McLaughlin, bond officer, G. Richard Degen, assistant controller, and W. Jack Hamlin, control officer. Bank of America, San Francisco:® John J. Bell has joined the bank as senior vice presi dent for external and internal com-_ munications. Hew has been corpo rate director of com m u nication s with Bendix Cor-^ p o r a t i o n . The b a n k also ann o u n c e d that James F. Langton, senior vice president, has becomqj^ full-time director of the bank’s social policy division, the principal duty to which he was appointed in 1973 and which he has shared with collateral senior responsibility for senior public# relations. Continental Bank, Chicago: John E. Porta, senior vice president, has b eei^ named head of the bank’s new finan cial services department. This depart ment will combine in one division U. S. trade finance, leasing, cash man agement, and specialized corporate fi^ nance functions, which will be inte grated with those of Continental’s London merchant bank. He formerly was executive director of Continental Illinois Limited in London, the m er^ chant banking subsidiary of Conti nental Illinois Corp., parent of the bank. First National Bank of Arizona^ Phoenix: Vice Chairman Edward M. Carson has been elected president and chief executive officer and Vice Chair man James Stuart Douglas chairmai^ of the executive committee, effective October 1. Mr. Carson will succeed Robert D. Williams, currently presi dent and chief executive officer, who will reach mandatory retirement age# Mr. Douglas will succeed Mr. Williams as chairman of the executive commit tee. Sherman Hazeltine, chairman, will retire on August 31 bringing to a close a banking career of 48 years. He h a # served as chairman for the past 19 years. 9 Now! A new CLIC program #to help you minimize apartment and .commercial mortgage risk. Four centuries ago, William Shakespeare said, "What's past is prologue.” In modern terms, this means that experience of the past usually leads to the beginning of something new. “ Even on a dear day no one can % see forever” . .. that’s CUCs new back-to-basics approach to Commercial Mortgage Insurance. At CLIC, we feel that phrase aptly describes what is now occurring in the apartment and commercial lending industry. The experiences of 1974 and 1975 clearly indicate that no commercial mortgage loan is insulated from the cyclical aberrations of the nation's economy and their effect on local markets, no matter how prudent the lender and sound his underwriting may be. At CLIC, we have spent a full year studying and re-evaluating the role of commercial loan insurance and the benefits it brings to the lending industry. The result is a new program that allows lenders to capitalize on CLIC's experience—to enjoy the higher yield of commercial mortgage loan lending while m inimizing risk. Full details are available in a simple booklet that is yours free. Simply use the coupon below or call 800-558-9900, Extension 6815. In Wisconsin 800-242-9275. Send for free booklet explaining the new CLIC program. Use the coupon below: 5201 Please send me a co p y of your bro chure d escrib ing the new C L IC program . Nam e Commercial Loan Insurance Corporation T itle Firm A mem ber of the M G IC Investment C orporation Family Address C ity State Z ip MG IC Plaza Milwaukee, Wisconsin 53201 Telephone https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rthw estern B a n k e r , J ul y Ì9 7 7 10 Harris Trust and Savings Bank, Chi cago: B. Kenneth West was elected executive vice president and head of the banking department. Ben T. Nel son, group executive of the metropoli tan group, was elected senior vice president. Mr. West joined the bank in 1957 and headed the international banking group before he became bank ing department head in 1976. Mr. Nel son joined the bank in 1954. Other elections announced by the bank are: assistant vice presidents — Margery F. Blume, Helmut L. Kopke and Richard R. Loncar, banking; John Alexander, Jr., Robert W. Back, Vic tor S. Sidhu and Andera J. Torok, trust. Also elected are: Wayne L. Bismark, personal banking officer; John F. Faulhaber, metropolitan bank ing officer; Timothy G. Goodsell, H. Noel Jackson, Jr., and Christina L. Wilkins, commercial banking officers; Jean I. Arthur and George W. Miller, trust officers, and Vincent A. Kolber, credit officer. H. Kris Ronnow has joined the bank as public affairs offi cer. He had been director of the com munity relations department of the vil lage of Oak Park. Allow us to introduce you to our local claim s man. Also, our field marketing specialist, expert solution-finder and chief profit center installer. This is one of our Regional R epresentatives. And he’s all these things and more. In fact, you m ight say he is our traveling Hom e O ffice! When he talks to you, he has our entire Hom e O ffice staff behind him, ready to serve your custom er insurance needs. Got a question about a claim? —he’s your man. Need a specialized custom er insurance plan? —this is the one to talk to. Assistance to obtain greater sales penetration? —here's your sales master. And if y o u ’re not already utilizing our creative custom er insurance programs and m arketing expertise, he !1 be happy DigitizedN for FRASER o rth w e s t e r n B a n k e r , J u ly 19 7 7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northern Trust Company, Chicago: The bank has announced the opening of a branch in Hong Kong to carry out the activities of a registered deposit taking company. It has maintained ® representative office in Hong Kong since 1974. Stephen M. Wolfe will be manager and will be assisted by Michael J. Cundy, deputy manager— who transferred from the bank’s Lon don branch. United Missouri Bank of Kansas City, N.A.: The following promotions have been announced: to vice presi^ dents: Phillip D. Straight, division 11, business development department; Kirk W. Vaughan, investment depart ment; Michael A. Kleinman, also named pension trust officer, employe^ benefits, personal trust; Sal O. Panis, Jr., personal banking; Jon J. Hender son, business development, Blue Val ley bank; bond investment officer — Randall J. Klein; assistant vice presW dents — Harry A. Peel, personal banking, and Robert L. Breviglieri, computer services marketing, opera tions; assistant cashiers — Ann Gard ner Smith, personal banking, an<^ Charles N. Van Zante, commercial loans, asset management; assistant corporate trust officer — Duane E. Schempp. Daniel F. Fox, vice presi dent, was promoted to assistant depart^ ment manager, bankcard division, as set management. Iowan Ties For Second Place in SBA Contest to install a profit center program in your operations. bt. Paul s Regional Representatives. One more exam ple of "P eople you can count o n .” Call toll free (800) 328-1950 or write to: St. Paul Hospital & Casualty Company 7800 M etro Parkway B loom ington, Minn. 55420 St. PauIfT) Hospital & Casualty A Mutual of Omaha ( Uimpami H o m e O f f ic e : B lo o m in g to n , M in n e s o ta ^ Jerry D. Schimmelpfennig, presi dent, Scientific Applications, Inc., of Mount Pleasant, la., has tied as run ner-up in the U.S. Small Business Ad ministration’s “National Small Busi^ ness Person of the Year” competition. Mr. Schimmelpfennig, 35, was cited by President Carter and SBA ’s Ad ministrator, A. Vernon Weaver, in a special White House Rose G arde^ ceremony on Tuesday, May 24, 1977. President Jimmy Carter announced the “National Small Business Person of the Year” as Larry Comer, 43, presi dent, Metalux Corporation, Americus# Ga. The national runners-up, which were tied, are Mr. Schimmelpfennig and Marie Tarvin, president, Sun City Delivery, Inc., El Paso, Tex. ACORN Registers "Accepted Sale Registers by Bank Clerks Everywhere" F o r i n f o r m a t i o n write THE ACORN PRINTING CO. Oakland, Iowa U " V At last, a look at the unheard-of: an actual overline ad. You may have noticed that not many banks exactly advertise the fact that they offer overlines to their correspondents. But Continental Bank does. In fact, w e're running this ad to make a bid for ov erlin es—from our correspondent banks, and from a lot of other banks we'd like to have as correspondents. We have a simple approach to each overline request we get: if our corre spondent values a custom er enough to lend its legal limit, we think its overline d eserves some pretty serious considera tion on our part. \ ^ At Continental Bank your credit requ ests don't go from committee to com m ittee to com m ittee. They go to your account m anager—one officer who has the authority to say “y es” or “no” on most loans. So you get your decision fast —direct from the person who made it. Call lohn Tingleff at 312/828-2191 with your request. If we can get together with you over an overline, Continental might just becom e more important to you overall, as a correspondent. And th at’s exactly what w e re trying to do. W e’ll find away. 1C C O N T IN E N T A L B A N K 231 SOUTH LASALLE STREET, CHICAGO, IL 60693 Continental Illinois National Bank and Trust Company of Chicago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northw estern Banker, J ul y 1977 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 'four custom ers are never very for from an American Express refund center. T h e way your customers are traveling these days, there’s no telling where they’ll end u p -th e country’s most bus tling cities, or its most scenic rural areas. No matter where they travel, we want to make sure they’re protected. T h at’s why we’ve made our refund system more sophisticated. If American Express' Travelers Cheques are ever lost or stolen, your customers can arrange for a refund anywhere in the U .S. just by finding the nearest telephone. Seven days a week, no matter where he is. All he has to do is call one tollfree number, 800-221-7282. (In New York, he can call collect, (212) 2484584.) O n a business day, we can arrange for a full refund at the nearest refund location, usually on the very same day. Any time of night, or on a week end or holiday, we can arrange for an Emergency Refund of up to $100. It’s that simple. No wonder more and more people prefer to travel with American Express Travelers Cheques. W hen they do, it’s always with the reassuring thought that help from our refund centers is only a phone call away. No matter where they travel. Make sure you sell your customers American Express Travelers Cheques. The travelers cheques with the refund system that’s always open and is never very far away. American Express Travelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rthw estern B a n k e r , J ul y 1977 14 1 PRO M O TIO N S and other an■*- nouncements have been made by the following firms: Aetna Business Credit, Inc., Chica go: A llexible financial program es pecially oriented to the food process ing industry has been introduced by this diversified financial organization, according to G. Pat Bacon, senior vice president and head of the firm’s central division. As an extension of the financ ing it is already giving to a number of companies in the food industry, includ ing meat, cheese, produce and special ty food processors, the new program, Mr. Bacon states, will provide a “flex ible approach to financing that food processors may not be able to get from traditional sources of financing. “Food processors wanting maximum productivity and maximum efficiency in 1977,” he added, “will have to as sure themselves of adequate financing in order to purchase commodities when pricing is most favorable.” Associates Commercial Corpora tion, Chicago: Ronald J. Krause, president, has announced the forma tion of a national accounts division, to operate within the corporation’s in dustrial finance division. The new di vision will be headed by Vice President James E. Lewis. He comes to the com pany with 1 1 years of experience in commercial financing and investment and commercial banking. A graduate of DePauw University, Green Castle, Ind., he earned his MBA at the Uni versity of Chicago. Associates Commercial is the com mercial financing subsidiary of Asso ciates Corporation of North America, a Gulf + Western company. The new division will provide secured, mediumterm corporate financing in amounts from $500,000 to $10 million. DeLuxe Check Printers, Inc., St. Paul, Minn.: The company has in creased its number of directors from nine to 11 with the election of Edward W. Asplin, executive vice president of Bemis Co., Inc., and Michael W. Wright, senior vice president of Super Valu Stores, Inc. United Guaranty Residential In surance Company, Bettendorf, la.: Robert Rosenblum has been appointed regional representative for the St. Louis metropolitan area. He form erly, was an attorney in private practice^ with the firm of Klamen, Summer & Compton, Clayton, Mo., specializing in real estate and finance. Wisconsin School of Banking Sponsors Seminars on EFT * A series of four seminars titled “Targeting on E F T Costs and Bene fits” is being presented in midwest# cities by The Graduate School of Banking at the University of Wiscon sin, Madison. The one-day seminars began in Omaha, June 29, with other sessions scheduled at Minneapolis.# July 13 (Radisson South Hotel); Kan sas City, July 19 (Hilton Airport Plaza Inn), and Chicago, July 26 (Hy att Regency-O’Hare). Registration fee is $100 per person. ® The four sessions during the oneday program present an E F T Over view, Cost Accounting Concepts and System Components, Survey Findings and Cost Accounting Manual Review.® The manual was developed for the Graduate School by Peat, Marwick, Mitchell & Co. \ FIRST MID AMERICA is proud of its Municipal Bond Management activities in 1977! $ 5 8 0 , 8 9 0 , 0 0 0 .municipal bond offerings managed or co-managed by First Mid America between February and May, 1977. By p rovid in g leadership in the capital raising process for m ajor Nebraska m un ic ipa l bond issues, First Mid America has helped our Midwestern econom y to g ro w and prosper. FMA specializes in arra n g in g m un ic ipa l bond fin ancin g, and this experience is very helpful to bond investors seeking taxexempt inve stment o pportunit ie s. We w e lc o m e o p p o rtu n it ie s to be of service in offe rin g sound bond investments. Just call. We w o u ld like to hear from you. M U N IC IP A L B O N D D E P A R T M E N T C. William Daly, Sr V.P fOO C ontinental B u ilding Omaha, Nebraska 68102 402-341-1500 Don Anderson, Sr. V P CTU B uilding Lincoln, Nebraska 68508 402-474-3300 fl£ \( Firsr Mid America ■ K M 51 U M em b er N ew York S to c k E x c h a n g e a n d o th e r P rin c ip a l S to c k a n d C o m m o d ity E xchanges Stocks • C o rporate Bonds • C om m odities • M unicipal Bonds • M utual Funds • G overnm ent Agencies • Options • Investm ent Banking • Pension Consultants O m aha • L in c o ln • C o lu m b u s • H a stings • G rand Island • A tla n tic • Des M oine s • C edar Rapids • Fort D odge • S io u x C ity * C h ic a g o • Kansas City N o r t h w e s t e r n B a n k e r , J ul y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 15 How to get the m ost for your safekeeping dollar: take the depository route, *via M anufacturers Hanover. Cuts holding and handling costs. For profit’s sake, count yourself in on the most advanced way to process securities —by electronic book entry, with Manu facturers Hanover Trust as custodian. Automatically, you “piggy-back” on our long position at Depository Trust Com pany which entitles you to lower rates. You not only cut out the expenses that certificates Delivery service to expe dite trade confirms and settlement. The fewer the fails, the better control you have of your funds. And we prom ptly credit dividends on the payable date. Tells you where you stand. entail—clerks, guards, vault space—but depository processing actually costs you less than a traditional safekeeping service. Gets you your money faster. We have the expertise with DTC’s Institutional We’re quick to relay the facts you need for recon ciliation. In addition to conventional reporting means, we now have one of the most advanced on line Securities Movement and Control systems —so advanced it can report your transactions on a daily basis. But hardware can’t do it all. A t MHT, you deal with a staff whose experience in securities administration averages well over 10 years. Leaves liability worries behind. When you participate via MHT, you’re relieved of the immense pressures that come from safeguard ing securities. In fact, M HT has more than $5 billion of its own trust assets on deposit at DTC. To learn more about how your bank can profit by M H T’s relationship with DTC, contact Brian V. Carty, Manufacturers Hanover, 350 Park Avenue, Hew York, H.Y. 10022. (212)350-4658. MANUFACTURERS HANOVER Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B a n k e r , J u ly Ì9 7 7 16 H ow to w in custom ers N o r t h w e s t e r n B a n k e r , July *977 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 and influence Realtors. In many communities, the key to getting a larger share of the home mortgage market is the Realtor.® • lt;s a fact that many Realtors (and their prospects) don’t know the advantages of a MAGIC loan. A lowdownpayment loan insured by • MGIC. And how it helps sell more houses and close on them faster by eliminating government red tape. To help you get more of the • existing home market, MGIC has put together a colorful promotional kit that's yours free for the asking. Each contains a counter card plus • a supply of 8-page MAGIC loan booklets which explain mortgage insurance to home buyers. You can use it in your loan ® department, give it to Realtors, builders, stamp your name on it and give it to retail stores. For copies, mail in the coupon or call us at 800-558-9900, extension 6641. (In Wisconsin 800-242-9275.) or contact your MGIC representative. 5222 M ortgage Guaranty Insurance C orporation M G IC Plaza, M ilw aukee, Wisconsin 53201 □ Please send u s _________copies of your Realtor prom otional kit. ^ Name Address Firm City & state. M G IC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Zip. M o rtg a g e G uaranty Insurance C o rp o ra tio n . Northw estern B a n k e r , J u ly 1977 18 Convention Calendar ABA— American Bankers Association ABHC— Association of Bank Holding Com panies AIB— American Institute of Banking BAI— Bank Administration Institute BMA— Bank Marketing Association IBAA— Independent of America NABW— National Women, Inc. Bankers Association Association of Bank RMA-—The Robert Morris Associates July 10-13— ABA Insurance and Protec tion Division Risk Management in Bank ing Seminar, Sheraton Inn/lnternational, Reston, Va. July 10-16—ABA Operations/Automation Division Business of Banking School, New England Center for Continuing Ed ucation, Durham, N.H. July 16— AIB District Leaders Conference, Milwaukee, Wise. July 21-23— Iowa Independent Bankers 6th Annual Convention, The New Inn, Lake Okoboji. July 22-23— AIB District 10 Leaders’ Conference, Radisson Hotel, Duluth. July 23— AIB District 9 Leaders Confer ence, Spokane, Wash. July 23— AIB District 10 Leaders Confer ence. Duluth, Minn. July 31-Aug. 12— BAI School for Bank Administration, University of Wisconsin, Madison. Aug. 13-19— BMA School for Marketing Managers, University of Wisconsin, Madison. Aug. 15-26— ABA National Trust School/ National Graduate Trust School, North western University, Evanston, III. Sept. 8-9— RMA Commercial Loan Train ing Programs: Content and Methods Workshop, Continental Plaza, Chicago. Sept. 12-15— NABW 55th Annual Conven tion, Atlanta Hilton. Sept. 18-21— ABA National Personnel Conference, Hyatt Regency, Atlanta. Sept. 25-27— Iowa Bankers Association 91st Annual Convention, Hotel Fort Des Moines. Oct. 15-19— ABA Annual Convention, Houston. Oct. 29-Nov. 2— BMA 62nd Annual Con vention, Hilton Hawaiian Village, Hono lulu. Oct. 30-Nov. 2— RMA 63rd Annual Con vention, New York. Nov. 6-9— BAI 53rd National Convention, The Hyatt, Houston, Tex. Nov. 6-18— ABA National Commercial Lending School, University of Oklaho ma. Norman. Nov. 14-16— ABA National Agricultural and Rural Affairs Conference, Kansas City, Mo. Nov. 27-30— ABA National Correspondent Banking Conference, Fairmont Hotel, New Orleans. Continental Opens Second Off-Site Banking Facility A parade of floats and costumed “flappers,” a big brass band and cal liope, and an old-fashioned carnival marked the grand opening of Conti- When it comes to Bankers’ Acceptances, the figures speak for themselves. Between 1966 and 1976, bankers’ acceptance outstandings rose from 3.6 billion to 20.7 billion dollars. An increase of 575%. Lawrence is expert in the field of eligible acceptance financing for goods in storage. Lawrence has played a dynamic role in the growth of this financing, providing benefits for borrowers and business for banks. Those facts should speak for themselves. For more facts and figures, call Lawrence. Lawrence: Systems of Collateral Control For more information, contact Ted Berghorst, Senior Vice President or John Cindric, Vice President at Lawrence Systems, Inc., 180 North LaSalle Street, Chicago, Illinois. (312) 236-9333. N o r t h w e s t e r n B a n k e r , J ul y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 nental Bank’s second off-premises banking facility, located at Clark, Di vision, and Elm Streets on Chicago’s near north side. ^ Acting Mayor Michael A. Bilandic assisted Continental Bank President John H. Perkins and Facility Manager Richard C. Bowers in making the first banking transaction at the drive-in^ teller windows. The facility has two drive-in teller windows off Elm Street and two exteri or walk-up automatic teller machines available 24 hours a day. £ The Near North facility is within 3,500 yards of Continental’s main of fice at 231 S. LaSalle St., the boundary prescribed by state law for one of an Illinois bank’s two off-premises facili-# ties. Continental’s first facility opened in September, 1976, at 30 N. LaSalle Street in Chicago’s Loop. Later on, Continental plans to build an expanded facility at Clark and D i-# vision Streets adjacent to the present facility. LeMaistre Elected FDIC Chairman The members of the board of direc tors of the Federal Deposit Insurance Corporation (F D -# IC) recently elect ed the Honorable George A. Le Maistre chairman. He succeeds the# Honorable Robert E. had s e r v e d as chairman s i n c e March 18, 1 9 7 6 .# G. A. LeMAISTRE Mr. LeMaistre, a presidential appointee as the Demo cratic member of the board, has served as an FDIC director since August 1, 1973. The board of directors, by law,® elects its own chairman from among the two full-time directors, who are appointed to six-year terms. The third director, an ex officio member of the^ board, is the Comptroller of the Cur rency. Chairman LeMaistre is a native of Alabama and practiced law in Tusca loosa until 1960 when he accepted th t^ presidency of City National Bank ol Tuscaloosa. He was elected chairman and chief executive officer of the bank in 1971 and was serving in this capaci ty when he accepted the presidential^ appointment to membership on the FD IC board. 19 HOW FAST YOUR BUSINESS MOVES DEPENDS ON HOW FAST YOUR DATA MOVES. In fast-paced business, you need a communications system that’s specialized, efficient and moves your data at lightning speed. A t Northwestern Bell, we’ve developed a total line of innovative data/telecommunications equipment capable of transferring large amounts of data. From one terminal to another or from one terminal to hundreds. No two companies have the same communications problems. That’s why we have a number of data systems, one right for you. For example, we’ve developed the D ata Speed 4 0 . It s a system that combines a visual-display unit, keyboard and hne-at-a-time impact printer. And because it’s modularly designed, you can select the capabilities you need now, add others later. Call your Northwestern Bell Account Representative or mail us the coupon below. Let one of our “problem solvers’’ meet with you and analyze your company’s data communications needs. W e’ll explain the innovative technology of Northwestern B ell’s data/telecommunications systems, all of which are built, installed and maintained according to stringent Bell System standards. Data, Cd t e l e c o m m u n i c a t i o n s j u s t may be the added dimension your company needs. I'm interested in Northwestern Bell's data/telecommunications systems. Cd Phone me and we ll arrange an appointment to discuss my company’s communications needs. Please send me a brochure. Name______________________________________________ Company__________________________________________ Title______________________________________________ Address___________________________________________ City---------------------------State_____________ Zip_______ Telephone Number_________________________________ Northwestern Bell, South 19th Street, Suite 7 0 2 , Capital Plaza, Omaha, Nebraska 6 8 1 0 2 Northwestern Bell https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northw estern Banker, J u ly 19 7 7 20 NYTCO Services Name Is Changed to Collateral Control Corporation F F E C T IV E July 1, the name E N YTCO Services, Inc., was changed to Collateral Control Cor poration, of St. Paul, Minn. According to Donald J. Ryan, senior vice presi dent of Collateral Control Corpora tion, the change involves the name only with no realignment of personnel, company services or alteration of cor porate financial structure. N YTCO Services, Inc., was the out growth of three predecessor firms: St. Paul Terminal Warehouse, founded in 1916; New York Terminal Warehouse Company, organized in 1936; and Haslett Field Warehousing, founded in 1913. According to Mr. Ryan, “while the name NYTCO Services has served well to unify these companies under our corporate organization, it did not properly reflect the full scope of our collateral control service activities.” Mr. Ryan points out that Collateral Control Corporation, through the predecessor companies, remains as one of the world’s oldest financial compa nies specializing in collateral control services for over half a century. Collateral Control Corporation will continue to provide the third party col lateral protection and control services offered by NYTCO Services, Inc. These include many aspects of com mercial lending activities such as: field warehousing, inventory certification control, credit security service, ac counts receivable certification, docu ment supervision service and floor plan audits. These services can be used separate ly or in concert to control inventories, accounts receivable, chattel paper and instruments, etc., depending upon the needs of the banks or customers. In addition, the company recently offered a new Bank Participation Leas ing Program designed for banks which do not have their own leasing sub sidiary or department. This turnkey program helps banks meet the demand for leasing by present and prospective customers, Mr. Ryan said. Donald A. Harper Donald A. Harper, 71, a retired vice president of the First Wisconsin Na- LEASE (les) leased, leasing. 1: an instrument conveying property or equipm ent to another for a definite period, in consideration of compensation. 2: to grant or obtain the temporary possession or use of (capital equipment) fo r compensation. Can your bank offer the above method of finance to your customers? If your answer is no, please contact LeaseAmerica Corporation. LeaseAmerica has several programs (referral and participation) that can help your bank and make money for you at the same time. Richard W . Myers /.A LE A SE A M ER IC A V___________________ N o r t h w e s t e r n B a n k e r , July https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 Vice President LeaseAmerica Corporation 400 American Building Cedar Rapids, Iowa 52401 800-5 53-5458 out of state 800-772-2051 in state tional Bank, Milwaukee, died of can cer last month. Mr. Harper joined First Wisconsin as a page in 1922. He was elected a r^ assistant cashier in 1935, assistant vice president in 1941, vice president in 1954 and was named head of the banks and bankers division in 1961. He retired in 1970. q Mr. Harper was the founder of the Wisconsin Bankers Association Educa tional Foundation, serving as its first president and holding that position for 20 years. a Equal Credit Act Explained In 2 Consumer Pamphlets Two new consumer pamphlets ex plaining provisions of the Equal C r e d it Opportunity Act are now available for public distribution, the Board of Gov ernors of the Federal Reserve System announced recently. The pamphlets are entitled: “Th<P Equal Credit Opportunity Act and . . . Women” and “The Equal Credit Opportunity Act and . . . Age." The Equal Credit Opportunity A cL forbids discrimination in credit trans actions on the basis of sex or marital status, race, color, religion, national origin, age, receipt of income from public assistance programs and gooc^ faith exercise of rights under the Con sumer Protection Act of 1968 (Truth in Lending, Fair Credit Billing, Equal Credit Opportunity, Fair Credit R e porting and Consumer Leasing A cts)^ Copies of the Equal Credit Oppor tunity pamphlets may be obtained singly or in bulk free of charge from the Board of Governors in Washing ton or from any of the 12 Federal R e ^ serve Banks. Requests should be ad dressed to the Board’s Publications Services or to Publications Depart ments at the Federal Reserve Banks of Boston, New York, Philadelphia^ Cleveland, Richmond, Atlanta, Chica go, St. Louis, Minneapolis, Kansas City, Dallas or San Francisco. Nortrust Establishes New Trust Subsidiary in Fla. Nortrust Corporation, parent hold ing company of The Northern Trust Company, Chicago, has opened a n a ^ tionally chartered trust company, Se curity Trust Company of Sarasota, NA, at 1390 Main Street, Sarasota, Fla. President of the company is B a r r ^ C. Hastings, formerly vice president of Security Trust Company. Miami. 21 FIXED INCOME PORTFOLIO SERVICE FROM THE HARRIS BANK. mmm IT’S THE SOURCE OF CORPORATE BOND INVESTMENT INFORMATION YOU’VE BEEN WANTING. The management of corporate bond investments is no longer the buy-andhold affair it used to be. It’s a com plex business. That’s why the Harris Bank created FIPS. A Fixed Income P ortfolio Ser vice that w ill become an indispensable tool for managers of corporate bond investments. FIPS provides regular reports in three main categories: 1. Portfolio strategy. 2. Q uality review analyses of w orking list issuers. 3. W eekly data on yields and spread relationships. With FIPS, you get the full fru its of the research conducted by the Harris Bank on its own behalf. In this respect, FIPS is a com panion to our very popular Institutional Investment Service for equity investments. The fee for FIPS is $1500 per year, payable in cash or through charges to a deposit account analysis. For com plete inform ation and sample copies of our reports, w rite or call John Alexander, (312) 461-7515; Jerry Jurs, (312) 461-7612; or Fred Younq, (312)461-7525. HARRIS BANK. Harris Trust and Savings Bank, 111 West Monroe Street, Chicago, Illinois 60690. Organized as N.W. Harris & Co., 1882. Member F.D.I.C., Federal Reserve System. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northw estern Banker, J ul y 1977 22 American Express Revises Letter of Credit REV ISED version of its world wide Travelers Letter of Credit, an instrument it first issued in 1900, has now been unveiled to the banking community by American Express Company. Jack Moody, vice president in charge of new product development for the Travelers Cheque Division of American Express Company, an nounced the changes which have been made with user convenience and pro tection in mind. The most noticeable new feature of the Travelers Letter of Credit, Mr. Moody said, is its size, noting that its dimensions have been reduced to busi ness envelope proportions which makes it easier to carry. Also, he added, the drafts that must be pre sented to banks for cashing have been provided with the document so it is easier to obtain cash by drawing against the Travelers Letter of Credit. The use of standard drafts also mini mizes transaction time at banks where drafts are cashed. Special security features have been incorporated into the new design “to protect both the user and the bank A where drafts are cashed,” Mr. Moody noted. The American Express Company Travelers Letter of Credit is available in amounts from $2,000 to $100,000, according to H. S. Thomson, manager of the Travelers Letter of Credit de partment. Substantial Increases for North Central Companies Theodore Sanborn, president of The North Central Companies, Inc., St. Paul, h a s a n nounced unaudit ed first quarter 19 7 7 figures which show sub stantial increases in net profit, total i n c o m e , assets, net worth and in su ran ce-in -force compared to the T. SANBORN 1976 first quarter. Total income grew 30.9% to $7,512,000 as of March 31, compared to $5,736,000 a year earlier. Consoli dated net income of $339,000 for the quarter was up from the $179,000 of first quarter 1976, advancing net in come per share to 49 cents from last year’s 25 cents. Assets rose to an all-time high of $58,020,000 from the year ago level of $46,849,000. Insurance-in-force for the North Central Life Insurance Com pany, the holding company’s principal subsidiary, reached a record high of| $1,337,599,000, a 26.6% increase over last year’s figure of $1,056,329,000. Credit insurance premium income is up 34% over the first quarter of last! year, and first year ordinary premium income is up 45% over the same peri od. United Missouri to Buy City Bond and Mortgage Co. Under an agreement in principle signed last month. City Bond and Mortgage Company of Kansas City will join United Missouri Bancshares,! Inc., Kansas City, a registered bank holding company. The announcement was made by R. Crosby Kemper, chairman of United Missouri, and Dale M. Schwader, president and chief! executive officer of City Bond and Mortgage. Pounded in Kansas City in 1934, City Bond and Mortgage is a major mortgage bank firm which originates! and services single family and income producing loans for approximately 30 institutional investors. It is located in the United Missouri Bank Building. The agreement provides that at least! 80% of its stock will be exchanged af ter regulatory approval is obtained. Control is no big deal. Christmas Club a Corporation always delivers on service. When you place an order with us you can count on receiving materials the date we promise. And we’re only a phone call away. Dial (800) 523-9440, toll free, anytime. Special monitoring of loans can seem complicated. Not to Lawrence Systems. We’ve been at it for over sixty years. Keeping our eye on collateral. A small cost to the borrower, a big convenience to the banker. Our experience is that banks should handle the deals, and Lawrence should handle the details. Call Lawrence. cbRisum as Lawrence: Systems of Collateral Control C l O b a corporation For more information, contact Ted Berghorst, Senior Vice President or John Cindric, Vice President at Lawrence Systems, Inc., 180 North LaSalle Street, Chicago, Illinois. (312) 236-9333. P.O. Box 20 Easton, Pennsylvania 18042 N o rthw estern B a n k e r , Jul y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 < "United Missouri’s bond department is one of the top 100 bond investment institutions in the country!" “So what?" “Weil, there are thousands of banks and other financial and investment houses throughout the country who deal in municipals and governments. Th at’s why being in the top 100 means something!’ “ How do you rank lo c a lly ? ’’ “Right up in front of the pack!’ “ Okay. But, w hat does th a t mean to o u r b a n k? ” “Maybe nothing. But, listen. How we got so big is im portant to you. And, now that we are big, what we can offer you is vital whenever you invest!’ “It is for us. One reason is that last year we participated in almost $1 out of every $2 of municipal general obligation bonds . . . sold at public sale...in Missouri and Kansas. That’s just for openers. Obviously, we have to know what we’re doing!’ “ H ow w ell do you evaluate every m unicipal o ffe rin g ? ” “That’s where judgment—earned the hard way through experience— comes in. We evaluate the credit worthiness of the bond before we sell it to you. We don’t just sell it, and forget it!’ “ W hat do you mean by th a t? ” H ow did you get so b ig ? ” “This may sound vague. But, we got big because we have always been responsive to the basic needs of our customers!’ W hat does that m ean? In w hat w a ys? ” “Well, we think of you—first. Where you are. Where you want to go. After all, it is your portfolio we’re talking about. We would, forexample; first evaluate your financial position before we would even rec ommend certain municipals!’ “ Do you mean that you m ig h t advise me n o tto buy a given m u n ic ip a l? ” “Since credit is continually changing, we contin ually re-evaluate it. We make secondary markets if you decide to sell” “ T h a t’s good to know !’ “One other thing about proper analysis of all bond offerings. We may not look as flashy, but we’ll make fewer mistakes” “ I 'm sort of interested. But, I w ant to th in k it o ve r!’ “You should think it over and talk it over with our bond department people, whenever you have a few minutes to spare!’ “Absolutely. Relatively risk-free as most are. Taxexempt as they are. If we don’t think they’re right for your portfolio, we’ll tell you so.” “ I’ve g o t a frie n d in o u r tru s t d e p a rtm e n t who m ig h t be interested, to o ...” T h a t’s in te re stin g . W hat else does bigness mean to m e ? ” “Tell your friend to stop by—or give us a call when he has a minute —I’m sure we can help him, too!’ “Quite a few things. Advantages we can offer you because of our sheer size and clout. It takes a large organization to investigate and analyze the munici pal bond offerings that merit our recommendations. And, that’s what we do!’ “ Fair e n o u g h !’ “ Is that n e ce ssa ry? ” UNITED MISSOURI BANK OF KANSAS CITY, U nited we grow. Together. 10th & Grand, Kansas City, Mo. 64141 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T ele p h o n e : (816) 5 5 6 -7 0 0 0 M e m b e r FDIC N orthw estern B a n k e r , J u ly 1977 lost buildings begin ith a foundation. urs begin at your bottom line. We plan and build from data which ndicate that new or remodeled financial facilities can contribute significantly to earnings. You get a better bottom line because we plan, design, and build financial buildings like businesses.. . not buildings. Actually, the last thing we do is design and build a building. There’s not another firm in your city, or in the country that can offer our up-front consultation se rvice s.. .and back them up with a building guarantee like ours. Simply stated: we’ll build it rig h t... on time... and within budget. Since 1913, we have planned, designed, and b u ilt or remodeled more than 6,000 buildings. Call us at (314) 647-3800. We have a man in your area. .... Bank Building Corporation 1130 Hampton Ave. St. Louis, M0. 63139 NB‘77 Please send information about how you can help build my business. Name. Address State. K K M M iM a H iH B M M H ia H iB H iH iM iW w a M Bank Building Corporation We’ll build you a business. OFFICES: St. Louis, Washington, D.C.; H artford, Conn.; Chicago, Atlanta, Dallas, Denver, Sanjm ancisco https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 •Timely Suggestions for Bankers P lanning To Build or Remodel? F F you are planning to either con-*• struct a new bank building or re model your present one, you should detain a qualified architect who is ex perienced in the financial building field. This is the advice given by a crossse ctio n of community bankers who " a v e recently completed bank build ing projects. Editors of the N orthwestern B anker asked area bankers to de s c r ib e one or two outstanding features uiey like best about their banking home; how they would approach the task differently if they were to start over, and to list some suggestions that light be helpful to other community ankers who are planning to build or remodel. Since most bankers suffered from cramped working conditions, the ob v io u s feature that most respondents like best about their new quarters is the additional space provided by the new or remodeled building. Here are some typical comments: 4) Donald G. Nordlie, president, Mid America National Bank, Cottage Grove, Minn.: “The extra space, efficient work flow, and after-hour capability are all important features. S o la r heating is, of course, the out standing feature at Mid America Na tional Bank. Bankers should select a qualified architect who knows work flow and operating problems. They Should also depend on a good general contractor and build with an eye to the future.” Donald Petersen, president, Lake side State Bank, New Town, N.D.: ® The fact that we used consider able rock and earth colors make it warm and pleasing to both our custom ers and employees. All of our interior d o r s and most furniture were selectd by bank personnel for their com fort and enjoyment. Since we re modeled, it was necessary to work around the vault area. This would have ^ een located in a different area in a new building.” f IF your lot size permits, you might consider rental office space with a strong bank build ing identity as pictured above. The First National Bank of Marion, Iowa, now under construction, will be in the Marion Financial Center. Robert D. Dixon, president, Rolfe State Bank, Rolfe, la.: “Our spacious lobby and office area allows us to decorate in a more attractive and ap pealing manner. We also like the fact that our large bookkeeping area is lo cated so our bookkeepers can fill in at the counter when necessary. “ If we were to start over, we would seriously think about a new building, rather than a remodeling and rebuild ing project. Our present vault is no longer large enough to be used as a cash vault and a safe deposit vault. If we had built a new building, we would have located the vault differently. “My advice to other bankers is to make certain there is adequate filing space and the vault will accommodate additional safe deposit boxes. Hire a good, reliable architect and spend time considering building plans. Be sure the building has a relaxing and spacious appearance and the interior is attractive to your customer types. Make certain you build a solid, work able unit with plenty of sunlight. Ade quate parking, a well-located night depository, and drive-up facilities must be given special consideration.” Russell B. Bacon, president, First National Bank, Glencoe, Minn.: “We tried to obtain a warm appearance for our customers and employees by using carpeting and natural woods, together with stone, for our interior walls. This combination offers excellent acoustical qualities, as well. Perhaps the out standing feature is a sunken garden court. “We used a local contractor, rather than put the job out for bids. No archi tect was retained for general super vision. The interior was planned by my wife, Suzanne Bacon, and additions and deletions were made after con ferring with the contractor.” Thomas N. Scott, president, Brenton State Bank, Dallas Center, la .: “The outstanding feature of our new bank is the Williamsburg decor. If we started over, we would endeavor to de termine a completion date and ex pedite the job to the best of our abili ties. We remodeled while working in substantial commotion for 15 months. This was disturbing to both our cus tomers and our employees. “We would suggest to other bankers to select a good architect and have plans as complete as possible before starting the job. We have a new office at Woodward and we had complete plans before work started. Remodeling can frequently be more difficult than building a new bank.” Northw estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker, J ul y 1977 26 F. G. Nilles, president, First West ern Bank, St. Louis Park, Minn.: “The features we like best are easy parking access and traffic flow through our auto-bank. If we were to start over, we would add underground lawn sprinklers and easier maintenance landscaping. If your lot size permits, you might consider rental office space with a strong bank building identity.” Robert D. Gulling, executive vice president, Farmers Savings Bank, Mitchellville, la.: “Our best features include our lobby, which is of oak FIRST National Bank of Long Prairie, Minn., is an example of modern architecture. wood with dark walnut stain: indi vidual loan offices; a drive-up teller with a remote teller lane, and a large community room for the public. Our new building should allow our bank to triple in size with no major changes. “Bankers should use equal thought in checking sub-contractors, as well as the general contractor, concerning their workmanship, promptness, and general ability.” Taunce H. Mathiason, president, The National Bank of Washington, la.: “The features we like best about our new building include size, parking facilities, location and drive-in facili GRAND OPENING was held last month at the new building completed by the Delmoi ties. Our lobby is designed to have Office of the First State Bank of Armour, S.D. N. C. Wenzel is v.p. & mgr. seven enclosed offices and can be ex panded to facilitate the addition of four more officers’ desks in the lobby area if the need arises. The location we se lected enabled us to develop a custom er parking area which is a vast im CONSULTANTS TO FINANCIAL INSTITUTIONS provement over our present situation. Our new facility has three drive-in lanes and is designed to have a fourth without any additional construction when the need arises. “ If we were to start over, we would consider re-locating the credit files. More consideration should be given to placing the files in a central location. A qualified architect and contractor can save you money and improved construction methods can be used.” L. L. Steele, president, Farmers & Merchants Bank, Huron, S.D.: “We expanded the square footage of our bank to the extent of approximately 3,000 square feet. In this additional space, we enlarged our instalment loan operation; we provided two pri Shown here the new corporate headquar vate offices for officers, a new safety ters for Illinois Bank Building Corporation deposit box vault which has a capacity in Olympia Fields. Designed and con structed by the members of our firm, it of 3,600 safety deposit boxes, and a typifies the quality and functional design new director’s room with dimensions offered by ¡BBC in the financial and com of 16 by 24 feet. We also enlarged the mercial building fields. IBBC 20180 G O V E RNO RS H I G H W A Y PLANNING TO BUILD . . . ( Turn to page 63, please ) Northw estern B a n k e r , J ul y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 81 1 1 - B NO. UNIVERSITY O L Y M P I A FI E LDS , I LL PEORI A, I LL. 61 6 1 4 60461 312/481-2800 309/692-2625 ink. P E R E N N IA L point o f co n ten tio n am ong business., labor, governm ent and acad em ic lead ers is w hether in flatio n or unem ploym ent is m ore im portant for p rio rity attention. T he two p roblem s were the cen ter o f heated d ebate frequ ently d u ring last year s p o litical cam paigns. C om pounding the difficulty in obtain in g a consensu s on which p roblem should have p riority atten tio n — inflation u nem ploym ent— has been the rapid drop from 12% in flatio n rate in 1974 to a 5 % rate in 1976, while unem ploym ent has dropped from in excess o f 9 % to an approxim ate 7% level at this tim e. On the follow ing pages, read ers are o ffered three view points of in flatio n . T h e first a rtic le , by the newest and youngest o f the 12 F ed eral R e serv e B an k p resid en ts, M ark W ille s, addresses d irectly the rela tio n sh ip betw een in flatio n and unem ploym ent, and exp resses the a u th o r's p h iloso p h y that will guide him as a m em ber o f the F ed era l O pen M arket C om m ittee. T h e second a rticle is by a m em b er o f the Fed B o ard o f G ov ern ors, Henry C. W a llich , who d iscu sses the devastating e ffe cts o f in flatio n on bank cap ital and how it in ten sifies the stru ggle by banks to m aintain an adequate level o f cap ital. T he third is by our re g u la r co lu m n ist, D r. W ayne D o b so n , who analyzes cu rren t f e d action in the battle against in fla tio n . I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northw estern B a n k e r , J u ly 1977 28 $ $ $ $ § !# Inflation vs Unemployment which is the real culprit*? Ed. N ote: Since taking his present o ffice a short tim e ago, Mr. W illes m ade his first m ajor address b e fo r e the recent North D akota B an kers A ssociation s 92nd annual con vention in F argo. B ecau se o f the im portance o f his views as the 9th F ed eral R eserve District representative on the F ed era l O pen M arket C om m ittee, we are presenting his talk in its entirety so readers m ay b e aw are o f the eco n o m ic philosophy h e will bring to that im portant com m ittee. G a new member of the Federal Open Market BEIN Committee has some significant advantages. One ot the most important is that it is not possible to blame me B ABOUT THE AUTHOR— Mark H. Willes became president of the Federal Reserve Bank of Minneapolis in April, 1977, at the age of 35, which makes him the youngest president of a Fed eral Reserve Bank. His appointment followed eight years at the Philadelphia Federal Reserve Bank, where he was advanced to vice president and director of research and then, at the age of 30, was appointed to the number two post as first vice president and chief ad^m stratoi\The youngest person to hold such a position. A graduate of Columbia University in New York City, Or. Willes received his BA degree in 1963 and his PhD in eco nomics and finance in 1967. He has also served on the facul ties of the Wharton School of Finance and Commerce in Phila delphia and the Columbia Graduate School of Business in New York City. Presently, he is on the faculty of the Graduate School of Banking at the University of Wisconsin. In 1966 Dr. Willes served as research economist for the House Banking and Currency Committee in Washington. In 1971 he was appointed economic adviser to the President’s special assistant for consumer affairs. He has authored numer ous articles on monetary policy. N o rFRASER t h w e s t e r n B a n k e r , J ul y Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 for past policy mistakes. And mistakes there have beei^ even in recent years. Nor do I feel any pressing need to use my time here to explain those mistakes away. Of course, I cannot tell you in any detail what monetary policy will or should be in the months and years ahead. What I eau and would like to do, though, is give you some idea of my view on what is surely one of the great economic issues of this decade — the issue of unemployment versus inflation. That view will guide me as I participate in the delibera tions of the Open Market Committee. £ I have been told that there is a grand tradition here in the Ninth Federal Reserve District, a tradition of open ness, of people being frank and candid. So you will, I am sure, let me know if you believe that my view on the issue of unemployment versus inflation is in error and that I ar^ therefore, likely to serve our country badly. I would, ot course, be delighted to hear from you if you think my view makes sense. Inflation No. 1 Problem 0 I can state my view in a very few words: the over-riding economic problem today is inflation. The Federal Reserve, therefore, must give top priority to restoring price stabil ity. 1 do not deny that we have a serious unemployme# problem. While the over-all unemployment rate has de clined considerably from the peak of 9.0% reached in the last recession, and prospects are good that it will go lower still through the remainder of 1977 and into 1978, even so, we will for some time to come have a serious uner# ployment problem. The problem may be, however, a little less serious than it appears. A given unemployment rate does not mean what it meant 15 or 20 years ago. That is because young people and women make up a larger fraction of the la b # force than they did. And although it is regrettable, the “To a degree, our very generosity has aggravated the unemployment problem.” young and women experience more unemployment on average than do adult male workers. On average, they quit their jobs or are laid off more frequently. And, thus, the larger their share of the labor force, the higher the un employment rate. Consequently, “full employment” is not what it once was. If 4.0 % was a good approximation of full employment in, say, the early 1960s, then today somewhere between 5% and 6% is a good approximation. And that is not as far from the 7.0% rate we had in April as some would have us believe. Effects of Unemployment Tempered Moreover, we have to keep in mind that generally those who are unemployed do not suffer as much economically as they did 10 or 20 or 30 years ago. To be sure, being laid off can be a severe trauma, a severe psychological shock. But, because a larger proportion of the unem ployed are women or teenagers, that often means there is at least one breadwinner in the home who is still working. So, many “ unemployed families” still have wage or other income to blunt the effects of unemployment. In addition, unemployment compensation is much more generous than it was. Indeed, recent research suggests that for some, unemployment compensation plus other available benefits exceed the take-home pay the individual would get by working. Consequently, for fairly long periods of time, people can be out of work and not suffer a significant decline in thenstandard of living. This not only means that the economic suffering associated with a given level of unemployment is reduced, but it also means that people are more choosy about the jobs they will accept. So, they are likely to stay out of work longer than they otherwise would. To a de gree then, our very generosity has aggravated the unem ployment problem. So our definition of full employment has changed. And some unemployment is the result of generous unemploy ment compensation and other benefits. Nevertheless, as I said before, a 7 .0 % unemployment rate is too high. We can (and I hope will) do better than that. No Tradeoff Between Choices The essential point, however, is that tolerating inflation, or letting inflation accelerate again, will not reduce unem ployment, except perhaps briefly. More inflation does not mean less unemployment. A decade ago, many (perhaps most) economists be lieved there was a trade-off between inflation and unem ployment. A government, if willing to tolerate a high enough inflation rate, could achieve any desired unem ployment rate. But the professional consensus now has shifted. Today, it is quite widely accepted that at best, inflationary monetary and fiscal policies will only fleetingly reduce unemployment. A government that launches on an inflationary course, either deliberately or accidentally, will not achieve a permanent reduction in unemployment. In fact, that very inflation may ultimately cause unemploy ment to rise. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In his most recent appearance before the Senate bank ing committee, Chairman Burns said: “My fundamental view is that unless we bring down the rate of inflation, we will not have good times in this country. We will con tinue to suffer from an excess of unemployment. I think that (restoring price stability) has to be our number one priority because unemploy ment and inflation are so closely tied together . . . To get unemployment down . . . we will have to get inflation down.” Inflation Only a Temporary Remedy Many people have taken exception to statements like this one of Chairman Burns. I will not take you through all of the theoretical and empirical studies marshalled on both sides of the issue, and I will readily admit that the evidence is far from conclusive. But, as I have studied the sweep of historical events both in this country and abroad, I have reached the judgment that at best, inflation can only buy a temporary reduction in unemployment. And often, it may do so at the expense of even higher unemployment in the long run as accelerating price increases call for stern measures to prevent economic chaos. Even if inflation could buy some reduction in unemploy ment, even a temporary reduction, it would be an unac ceptably expensive way to do it. Inflation is a capricious tax, which in very arbitrary ways takes from some seg ments of society and gives to others. We really know very little about who benefits and who gets hurt by inflation, but we do know that it creates uncertainty and, thereby, dis torts and complicates decisions both of consumers and businesspeople. The inevitable result of all of the economic churning that is part of people’s attempts to anticipate or respond to inflation is the waste and misallocation of re sources. On a national scale, the cost must be horrendous. Surely there must be cheaper and more effective ways, from society’s point of view, to reduce unemployment. Variety of Alternatives Available We might try a variety of ways to improve the workings or the efficiency of the labor market, by removing artificial barriers and facilitating the flow of job and other informa tion. We might limit future increases in the minimum wage, or indeed even lower it at least for the young and poorly trained job seekers. It seems quite clear that the minimum wage is, in part, responsible for the high unem ployment rates experienced by the young, and particularly the young of minority groups. And, we hardly do the young a favor by promising a nice wage for jobs they will never get. And other things can be done. The point is that if we would all spend as much time developing creative ways to reduce unemployment directly as we now do figuring out ways to cause and then try to manage inflation, we could most likely solve both problems with much less cost and anguish. This is particularly true now, since we still periodiNorthw estern Banker, Jul y 1977 30 “There are hints in reports that in flation may be accelerating again.” $ $ $ $ s | ^ cally hear the suggestion that some form of wage and price controls should be used to help inflation. Fortunately, the current Administration seems persuaded by the large amount of experience in this and other countries that such controls are not only ineffective but costly. They distort the necessary flow of goods and services, cause shortages and bottlenecks, and most important of all they cause a significant reduction in personal freedom. Let's hope that government persists in avoiding application of the wage and price control remedy, which is worse in its; effects than the problem it is ineffective in solving. The Federal Reserve Response? And what of the Federal Reserve? Can we be confi dent that it will do what is required? Again, I am cautious ly optimistic. Being bankers, you are all aware, l am sure, that now the Open Market Committee pays much more attention than it once did to the so-called monetary aggregates, the important of which are M t and M 2. As you know, is the narrow money supply, the total of currency and demand deposits owned by the public, and M 2, the broad money supply, is made up of currency and demand deposits plus consumer-type time and savings deposits. Now, the Open Market Committee has not become a slave to those aggregates, although some might wish that it had. It attends to other economic indicators as well. But it is important that the committee has to some extent changed the way it operates, and more particularly that it keeps a closer watch on M, and M 2 than it once did. On occasion, in the past, it has confused an increase in inter est rates with a more restrictive monetary policy. But now, with it watching the aggregates, there is less chance that the committee will fool itself. Target Growth Ranges The committee itself chose to put greater emphasis on the aggregates. It was helped along, though, by the Con gress. Under Concurrent Resolution 133, the chairman of the Board of Governors is required to report at quarterlyintervals on the target growth ranges for the aggregates that have been adopted by the Open Market Committee. Earlier this month (May), Chairman Burns went before the Senate banking committee to inform it (and thereby the general public) what rate of growth for M t the FOM C was hoping to achieve over the year ending in m id-1978. He said that the FO M C was hoping for growth in the range of A-Vi % to 6 V2 % . But Chairman Burns also said, as he has on every occa sion, that the target growth ranges set by the FOM C are too high, that over time the ranges had to be reduced. And over the past two years the committee has reduced its ranges, if ever so gradually. I believe we can take some comfort from the fact that the committee has been chang ing its target ranges in the direction of moderating infla tion. Of course, we could take even more comfort if the N orthw estern B a n k e r , J ul y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 FOM C were living up to its intentions. While it has gradu ally lowered its target range for M„ there has been no ap preciable decrease in actual growth of the money supply. Indeed, the money supply increased more in 1976 than in • 1975. Clearly, the committee has to do better at delivering on its promises. Environment of Monetary Policy Now I don’t want to be too harsh on my new colleagues. The environment in which monetary policy has been con ducted has been very difficult. There are many, in fact, who have argued that the infla tion of the period since 1973 was forced upon us by nature and the OPEC cartel. You will recall the crop failure of 1972, particularly in Russia, and the less serious failure of 1974. Those failures resulted in sharp food price in creases, and those increases got reflected in wage demands and thereby in a subsequent general increase in prices. And, you will recall the unprecedented oil price increases of late 1973. They, too, got reflected in wage demands and thereby in a more general increase in prices. So it is in one way right to say that the inflation of re cent years was forced on us. But it is in another way wrong to say that inflation was forced on the United States. What I mean is that with restrictive enough monetary and fiscal policies, the food and oil price increases might have been offset in part by decreases in prices of other things. Of course, if our policies had been that restrictive, unemployment would for a while have averaged more than it did. When policies become more restrictive, the immedi ate effect is a decrease in output and employment. Prices respond only with a longer lag. So the Federal Reserve fol lowed a course of moderation. It perhaps felt — and if so, rightly — that with a policy that was too restrictive, it might win a battle and lose the war. That is, the clamor resulting from even higher unemployment than we had might have resulted in changes in our governmental and other policies and institutions that could have haunted us for a long time. But it is extremely important to recognize the nature of the inflation of recent years. An increase in one price will be inflationary only if accommodated by an increase in the money supply. ® ® ^ £ £ £ 0 # Conclusion I am under no illusion that restoring and then maintain ing price stability will be easy. We in this country, and those in other countries as well, seem to have developed ^ unrealistic expectations about the standards of living we can have. That is in part the fault of governments that have promised too much. It will take a while for us to un learn, to change our expectations. And do ng so will be painful. Yet the Federal Reserve must, it seems to me, do ® what it can to get the economy back on the path of stable prices. It must resist the pressures born of disappointed expectations. If it does not, then likely we will end up a much more regimented economy, and with less of that most precious of all commodities, freedom. 19 ^ 31 Inflation shrinks bank capital By HENRY C. WALLICH Member, Board of Governors Federal Reserve System Washington, D.C. f WANT to address myself to an aspect of inflation that I I * is of great importance for bank regulation: the impact of inflation on bank earnings and bank capital. My principal conclusion will be that inflation has se verely reduced the true income of commercial banks. Tak ing the years 1973-75 together, the banking system paid || out more in dividends than its inflation-adjusted earnings. The seemingly large additions to bank capital from re tained earnings shown on the books were largely offset by the shrinkage of bank capital due to inflation. This raises fundamental questions about the ability of the banking sys• tem to generate sufficient earnings in order to maintain capital ratios or to sell enough new stock to achieve that purpose. In an inflation, banks are born losers. They are net creditors, or, in the language of the accountants, they have • a positive net monetary position. That is to say, their monetary assets, which account for everything except the building and its equipment, exceed their monetary liabili ties. Having more assets that lose value through inflation than liabilities, the real (constant dollar) value of their ® capital suffers. One Analysis of Impact One way of analyzing the impact of inflation is to apply the techniques of General Price Level Accounting. Doing ^ th is for the years 1973-75, it appears that the earnings of all insured commercial banks, instead of the reported $20.9 billion, work out at only $7.3 billion stated in cur rent (not constant) dollars. The dividends that banks paid ^ o u t during this period amounted to 112% of those inflaw tion-adjusted earnings. Applicable Federal income taxes during the same period, instead of the reported 19% of earnings, totaled 54% of inflation adjusted earnings. These data and others are shown in the appendix prepared ^ b y Don Tucker and Ellen Harvey of the Federal Reserve Board. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The General Price Level Accounting Adjustment indi cates that over the three-year period inflation-adjusted earnings were less than half of reported earnings. To pay out more in dividends than their adjusted earnings under ordinary accounting procedures, banks, in most circum stances, would require the permission of the regulators. And finally, instead of paying a relatively low effective tax rate, as is commonly believed, banks on an inflation-ad justed basis paid a rate higher than the regular 48% cor porate rate. The rate of return on capital, instead of 11.0% as per book, was 3.6% on an inflation-adjusted basis. These inflation-adjusted figures also have an implica tion, of course, for the banks’ capital position and for the safety and soundness of the system. After correction for inflation, the substantial increase in bank capital from $55.1 billion in 1972 to $73.3 billion in 1975 largely dis appears. Since banks issued some equity capital during this period and had other adjustments to capital and re serves, the excess of dividends over inflation-adjusted in come did not cause capital actually to shrink in inflationadjusted and constant dollar terms. But the increase in in flation-adjusted capital stated in 1975 (i.e., constant) dollars was small, from $75.4 billion in 1972 to $80.5 bil lion in 1975. Meanwhile the ratio of bank equity capital to total assets rose from .071 in 1972 to .075 in 1975, stating both capital and total assets in inflation-adjusted terms, since bank assets in real terms rose even less than bank capital. Inflation Shrinks Capital It should not be surprising to find that bank capital tends to shrink during inflation. Bank capital is essentially money, and money loses value through inflation. To main tain the real value of their capital during inflation, and its normal growth from retentions, banks would have to earn a rate that, after taxes, would cover the rate of inflation in Northw estern B a n k e r , J u ly 1977 32 “Bank earnings and capital . . . one of the last bastions of money illusion.” addition to providing a normal return. If we regard the very roughly 10% rate of return that banks have earned over long periods as the norm, recent rates of infla tion would require a rate of return after taxes higher by at least a factor of one-half to maintain capital in real terms and keep it growing through retentions. I very much doubt that either bankers, or the public, or legisla tors, would regard such a rate of return on bank capital as at all appropriate. The area of bank earnings and capi tal seems to be one of the last bastions of money illusion. The stock market, to be sure, seems to have read the numbers correctly. For several years, bank stocks have sold at relatively low price/earnings ratios. Some ob servers have attributed this to concern over possible loan losses that banks might incur. At least equally plausible an explanation is that the market has become aware of the attrition that inflation wreaks on bank earnings and bank capital. Implications for Regulator What are the implications of these findings for the bank regulator? For the most part, the bank regulator probably will say that he deals with bank earnings and capital as they appear on the books, not as they appear after some theoretical adjustment for inflation. This reaction is a sensible one for many practical purposes. It does not al low the regulator and the banks, however, to escape the logic of the analysis. That logic is that inflation makes it very difficult to maintain an adequate level of bank capital. It is the nature of inflation that bank assets and liabilities expand at a rapid rate in current dollars, even though they may rise little or even shrink in constant dollars. If, for example, they expand at 1 0 % , a 10% rate of return on capital will allow no dividends at all to be paid if the capital/assets ratio is to be maintained without new stock issues. Beyond that, there is no way of maintaining that ratio from reten tions unless bank earnings and the rate of return on bank capital rise. The inflation-adjusted analysis makes clear why efforts of the banks, stimulated by regulatory concern, to improve their capital ratios, may have only limited success under these conditions. Bank earnings are not large enough to permit retentions that would keep capital abreast with as sets rising rapidly in current dollar terms. The underlying weakness of earnings as revealed by the analysis and as observed by the stock market makes it difficult, mean while, to increase capital by new equity issues. Issuance of subordinated debt can help, but is no fundamental solu tion. If the obvious answer to the problem — to stop the inflation — is not immediately in sight, maintenance of adequate capital ratios will be difficult. Ignoring Market Signals From an economic point of view, moreover, there is a real question whether it is advisable, even if it were possi N o rthw estern B a n k e r , J u ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 ble, to increase the flow of equity capital into an industry that experiences so low a real rate of return. Low earnings^ are the market’s way of signaling that capital should floww out of, rather than into, an industry. If the regulators, for reasons of public policy, believe that the verdict of the market should be ignored, they are in need of some conception of how this public policy,^ based on considerations of soundness and safety of the banking system, is to be accomplished. Are the regulated banks to sell stock at prices that would dilute equity and earnings, thereby further increas ing the difficulty of raising additional capital later on? f Do they believe that banks should limit the growth of their assets until acceptable capital/assets ratios are achieved? Curbing the growth of bank assets and, therefore, of the money supply is the job of monetary policy which would# have the highly desirable result of curbing inflation. But, if the economic situation does not allow the monetary au thorities to do that in the short run, limiting the growth of bank credit and money supply through more stringent capital requirements for banks would not be appropriate# either. In the best of cases, it would cause a larger propor tion of the total flow of credit to move outside the banking system. In other words, if monetary policy is unable, for the time being, to perform the job of halting inflation, regula-# tory policy restraining monetary expansion through the clumsy device of capital ratios will not do it either but may in the process do damage to the flow of credit and to the economy. All this does not mean that regulators should give u p » the objective of advancing bank soundness by improved capital ratios. There will always be phases of the business cycle, and individual banks in particular circumstances not reflecting the average of the banking system, that permit progress in improving capital ratios to be made. But bank^ regulators will do well to look for alternative means of en suring the soundness and safety of the banking system that are less at odds with the present signals of the market. I shall now examine some of these alternative ap proaches. ® Principle of Pooled Insurance Protection through adequate capital, including, if necessary, subordinated debt, reflects in essence the princi-^ pie of self-insurance. Each bank provides individually against the risks to which it is exposed. The alternative is the principle of collective or pooled insurance as imple mented by the FD IC. Insurance of deposits up to $40,000 has the twofold effect of (1) reducing the probability and^ potential magnitude of depositor runs, thereby enhancing the safety of the bank and (2) assuring depositors that up to the insured limit they will get their money back in case failure does occur. If the principle of self-insurance meets with obstacles during inflation, an extension of pooled^ insurance can be contemplated. 33 ^ “Adequate capital is first line of defense in protecting bank creditors.” i The principle of pooled insurance obviously has not been pushed very far today. One reason why it is wise to be cautious in moving in that direction is that this form of insurance tends to reduce the discipline that the market imposes upon banks. Today, depositors with accounts 'over $40,000 have reason to watch their banks. A large bank that has not kept itself in sound condition may find itself confronted with a tiering of CD rates, i.e., with hav ing to pay a premium for large CDs. Going to 100% de posit insurance would remove this discipline. 1 Going to 100% deposit insurance, moreover, would not protect a bank fully against runs, since there may be other creditors with liquid claims, such as Federal funds. Insur ance of all creditors might prevent runs, but not in solvency. Stockholder discipline thus would be preserved. Combined Discipline Stockholder discipline alone, of course, is not as effec tive a form of protection against unsound banking as is the ^com bined discipline of creditors and stockholders. More over, stockholder discipline may evaporate in cases of small banks where management and stockholders are identical. Yet, it is important to note that even 100% in surance does not altogether do away with all forms of ^ m arket discipline. Another extension of the insurance principle is action by the insurer to preserve the continuity of an endangered bank in one form or another. The FD IC employs this op tion either in the form of assisted merger or of purchase 0 a n d assumption in case of a failing bank. In the first case the bank survives, in the second it does not. In either case, however, the ultimate outcome from stockholders will depend on the condition of the failing bank. Even if stockholders were to contemplate an FDIC arranged • merger as the ultimate outcome in case their bank does not prosper, they will have a reason to discipline their man agement. Stockholder discipline, therefore, will have been preserved. lated practices. There might be a danger that the super visors would ultimately end up as controllers, while the purpose of the proposal should be, of course, to give the banker a wider range of risk options instead of tying his hands. But the trend toward a growing use of quantitative methods and systems analysis in bank supervision might facilitate the employment of graduated premia for in surance of bank liabilities. Conclusion In conclusion, I would like to repeat that there exist several routes toward the achievement of safety and soundness for the banking system. Adequate capital has been the traditional major safeguard. It remains the first line of defense in protecting bank creditors. But, if infla tion makes it difficult for banks to maintain adequate capi tal ratios out of earnings and simultaneously makes it very costly, if not impossible, to raise capital through new is sues, there are alternatives. These would require very care ful study before anything decisive can be said. But that study should be undertaken before we either accept a resumption of the trend toward lower capital ratios or seek to maintain these ratios by uneconomic means. ■ N CHICAGO f a w Graduated Premium Various techniques suggest themselves to enhance the discipline of the market under the various foregoing in surance options. Instead of 100% insurance, for instance, ^ o n e could contemplate a form of co-insurance, leaving w some degree of risk, perhaps a very small one, with the creditor. Even 99 % insurance might be sufficient to keep bankers interested in maintaining a good market rating in order to avoid tiering of their liabilities, without ^cau sin g depositors and other creditors to run at the slightest sign of trouble. Graduated insurance premia would be another way of exerting a form of discipline over bank risk taking. A high risk portfolio would call for higher insurance premia than ^ a low risk one. This would, of course, require careful su pervision of banks’ portfolios and perhaps other risk-re-t https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Modern elegance with a truly French flair • The elite atmosphere of an exclusive international hotel • Spacious suites — just four on each floor • Each suite with its own all-electric kitchen/bar, theatrical vanity, carpeted mosaic bath. Some suites with Bidet and Grand Piano • * < * * * oij for true Parisienne tone of haute cuisine • Complimentary continental breakfast served in your suite • On Chicago’s Gold Coast and Near North. Adjacent to business Poop and shopping the BEST VALUE fo r QUIET LUXURY 30 Floors of Dramatic Suites and Master Bedrooms 1300 North Astor Street Chicago, Illinois 60610 William C. Wolf, Gen’l Mgr. (312) 943-1111 N orthw estern B a n k e r , J u ly 1977 34 Inflation threat moves Fed to tighten credit * By L. WAYNE DOBSON Professor of B a n k in g ^ University of Nebraska Lincoln, Nebr. r f 1H E R E is little question that during the past weeks the Federal Reserve has instituted a tighter credit policy. The target federal funds rate has apparently been increased twice during the last month and presently seems to be 5 1 4 % . It has been wide ly assumed that the funds target of 4 1 4 % , 4 3A % was too low to be sus tained if the economy continued to ex pand. In addition, the money supply had been increasing at an unacceptable rate for several weeks. It is probable that this increase in federal funds rates will hold and that the level of short term rates will tend to drift slowly upward during the next several weeks. The main reason analysts had been expecting a tightening of policy was the sharp increases in the money sup ply. By any reasonable criterion, the MONEY STOCK (M l) Compounded Annual Rates of Change, Average of 4 Weeks Ending: 4/28/76 To the average of 4 weeks ending: 9 /2 9 /7 6 10/27/76 11/24/76 12/29/76 1/26/77 31 2/77 3 /3 0 /7 7 4 /2 7 /7 7 7/28/76 9/29/76 10/27/76 11/24/76 12/29/76 3.7 5.7 4.8 5.3 5.7 4.9 5.0 6.4 7.3 5.3 5.9 6.5 5.3 5.4 7.2 7.9 7.9 8.3 6.2 6.2 8.5 4.0 5.7 3.9 4.2 7.1 8.7 5.2 5.4 8.7 3.8 4.4 8.9 1/26/77 3/2/77 2.2 8.7 Source: U.S. Financial Data. Federal Reserve Bank of St. Louis ABOUT THE AUTHOR— L. Wayne Dobson received his AB and MA degrees from Western Kentucky University, then earned his MA and Ph.D. degrees in economics from the University of Kentucky, after which he did post doctoral work at the Unversity of Chicago. He is also a graduate of the Graduate School of Banking at the University of Wisconsin. Dr. Dobson's current positon is Abbott Professor of Banking and professor of economics and finance at the University of Nebraska in Lincoln. His previous positions were chairman of the department of economics at Western Kentucky University; director of research and education for the Kentucky Bankers Association, and research fellow at the Federal Reserve Bank of Cleveland. Dr. Dobson has written more than 30 articles and monographs for such publications as T a x e s , B a n k i n g L a w J o u r n a l , B a n k e r s M a g a z i n e a n d T h e N a t i o n a l T a x J o u r n a l . He is educational director of four banking schools sponsored by the states of Kansas, Missouri and Nebraska and has been a faculty member of numerous other banking schools, including the Graduate School of Banking, University of Wisconsin. N o rfhw esfern B a n k e r , J u ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 money supply had been increasing far more rapidly than acceptable; for the four weeks ending with the first week of May, the increase in MI (cu rren cy # and demand deposit) averaged almost 15% , and if a five week period were used the increase averaged over 2 0 % . The seriousness of these increases is apparent if other rates during 1977 a r e # considered. The table below shows the rates of change during 1977. Changes in the money supply by such magnitudes strongly suggest that the public must be prepared to accept® large doses of inflation for a long period. It is for this reason that inter est rates will rise further. For the next 12 months, the Federal Reserve has established an acceptable® growth range for the money supply of 414% to 6 4 % . While these ranges are subject to change, and broader short run ranges inserted, it is probable that the Fed will attempt to achieve® more acceptable rates of monetary growth. Recent economic data indicate that the economy is performing more vigor-^ ously than had been forecast; this willw permit the Federal Reserve the flexi bility required to gradually tighten credit policies. Excluding price level changes, all of the key economic in d i-^ cators have been favorable during 1977. The rate of unemployment has declined to 7 % , real GNP increased by 5.2% during the first quarter, the Index of Leading Indicators rose b y ^ 1.4% during March, and personal in come and industrial production have been very strong. Thus, it would seem that now is the time to get about the serious business of fighting inflation.^ ■ 35 O ur idea of correspondent banking: THE COMMITTEE O F ONE* Our people are real, live, experienced correspondent professionals, with years of correspondent banking behind them . 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N orthw estern B an ke r, July https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 # 37 0 OFFICERS of the MBA for 1977-78 are, left to right: Pres.—Gene A. Beito, pres., North ern State, Thief River Falls; 1st V.P. — Leslie W. Peterson, pres., Farmers State Bank of Trimont; 2nd V .P .—John M. Owens, pres., Northwestern Bank of Commerce, Duluth; Treas. — Richard Carlander, pres., State Bank of Faribault, and Exec. V .P.—Truman L. Jeffers, Minneapolis. • Minnesotans Elect Gene Beito As President R O SPEC T S for paym ent of in terest on demand deposits, and other state and federal legislative m atters cornered the center of atten tion at the 87th annual convention of the Minnesota Bankers a t the Radisson Hotel in S t. Paul last month. In addition to hearing these speakers, delegates were given per sonal reports on com m ittee activities of the p ast year by the respective com m ittee chairmen. A t their annual election, delegates elected Gene C. Beito, president of Northern S tate Bank a t Thief River Falls as thenpresident of the M BA for 1977-78. M r. B e ito su cce e d s C. P a u l Lindholm, senior vice president of the Northwestern National Bank of P 0 # # • 0 _ ^ By BEN HALLER, JR. Editor and MIKE FREELAND Business Manager Minneapolis, who was commended several times during the convention for his leadership during the past year. M r. Beito is pictured above with the other officers who will serve with him during the coming year. In addition to the officers, three new members of the M BA Council of Administration were installed for three-year term s. They are: C. Bernard Jaco b s, chairman and chief executive officer, National City Minnesota’s ABA officials— Mike Pieschel, ABA state v.p. and pres., Farmers & Merchants State, Springfield; John Chisholm, ABA Governing Council and pres., Marquette B&T, Rochester; Elwood Throndrud, ABA Governing Council and pres., North western State, Ortonville, and Paul Lindholm, ABA Governing Council (effective at the end of the ABA convention this fall to succeed Mr. Pieschel) and sr. v.p., Northwestern Natl., Minnea polis. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank of Minneapolis; H erbert A . Lund, executive vice president, Security State Bank, Albert Lea, and Clinton D. K urtz, executive vice president, Citizens S tate Bank, Nor wood. W ith the use of slides, M r. Lind holm presented the initial part of his annual report. Legislative activities were a vital p art of the year, and he gave a report on results of the survey taken among members to obtain their feelings on several key points. The results guided M BA officials in their pursuit of legislative goals. When the s ta te ’s bankers were asked their preference regarding an improvement in the facility law, the vote was definitely in favor of such broadening of power. Conversely, when branching in any form was dis cussed, the vote was overwhelmingly against such action. Here are results shown by slides during President Lindholm’s talk: “ Shall we have two facilities at home or in non-banked communities up to 25 miles aw ay?” Y e s—276 (75% ); N o - 9 3 (25% ). “ Shall we have two facilities outstate and unlimited metro facili ties?” Y e s - 2 5 8 (70% ); N o - 1 1 1 (30% ). “ Do you favor regional branch ing?” Y e s - 184 (47% ); N o - 2 0 4 (53% ). “ Do you favor some type of branching?” Y e s — 109 (32% ); N o 227 (6 8 % ). “ Do you favor E F T , both POS and A T M ?” Y e s - 2 2 9 (79% ); N o 78 (21% ). To complete his report, Mr. Lind holm called upon committee chair- R. J. Johnson, State Bank of Clarks Grove, receives his 50-year plaque from Elvin Gandrud, chmn. of Pope County State, Glenwood, and pres, of Pioneer Club. N o rth w e s te r n B a n k e r, J u ly 1977 38 The original oil painting of the Minnesota loon, the state bird, was presented to Paul and Marlys Lindholm (left) by Mr. and Mrs. John Morrison and Harry Wahlquist on behalf of directors of the Northwestern National Bank of Minneapolis in recognition of Mr. Lindholm’s year as president of the MBA. Mr. Morrison is chairman and chief executive of ficer of the bank. Mr. Lindholm and Mr. Wahlquist are senior vice presidents. Mark Willes, pres., Federal Reserve Bank of Minneapolis, visits with David Lilly, former chairman of the Minneapolis Fed and now a member of the Fed Board of Governors in Washington, D.C. men during the several business sessions to give their personal reports. Jam es E . Hansen, chairm an, pen sion com m ittee, and president, M er chants & Miners S tate Bank, Hibbing, said an extensive study has developed a new pension program for member banks th at will allow great latitude in customizing such a plan to individual banks. Gerald Kanne, chairman, bank management com m ittee, and senior vice president, Northwest Bancorporation, Minneapolis, said a high priority has been given to personnel N o rth w e s te r n B a n k e r, J u ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 Mike Summers, comm. In. off., Midland Natl., Minneapolis, and Len Griffith, v.p., 1st Natl., Duluth, watch Jerry Choromanski, pres., Crystal Lake State, try his hand at the putting green in the Midland Natl, hospitality room. Andy Meyers, partner, J. T. Miller Co., Minneapolis, and Bob Keyes, pres., Minnesota State Bank, St. Paul. relations due to many new federal laws and regulations. Consequently, his committee is requesting sponsor ship of two statewide seminars, one for executive officers and one for supervisors, this fall. An interim salary survey among banks of up to $40 million deposits is to be made. Lyle Nelsen, chairman, ag and rural development com m ittee, and vice president, Nicollet County State Bank, S t. Peter, said drought was the key problem the past year and controlled the direction of m ost com m ittee activity. Included was an Irrigation W orkshop in M ay for 100 tionally good irrigation information developed by the University of Min- £ nesota. Richard E . Gandrud, chairman, co m m u n ica tio n s c o m m itte e , and e x e c u tiv e v ice p re sid e n t, Pop e County S tate Bank, Glenwood, re- # ported th at 3,900 bankers had attended 16 bank staff seminars. The publicity com m ittee has developed a 17-minute slide film, “Your B a n k ,” for use with legislators, schools and • all media. A t the noon luncheon for the Pioneer Club members and M BA M IN N ESO TA CONVENTION ... registrants, utilizing some excep (Turn to page 45, please) if COMPETITIVENESS “I don't want to see my customers take their business someplace else. So I strive to be as competitive as I can. I anticipate customer needs well in advance and evaluate a number of possible solutions. Then I try to deliver a workable answer fast. This is a service business we’re in. And you have to be competitive if you are going to keep the business." —James Russell Correspondent Bank Officer Twin City Metro Area https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cowespontlcfit Bank Division Carol Addington; Rosemarry Ring; Bill Addington, a.v.p., Mar quette Natl., Minneapolis; John Ring, v.p., Northwestern Bank of Commerce, Duluth; Avery Fick, v.p., Marquette Natl., and his wife, Eloise. Officers of the Minnesota Flying Bankers Assn, elected during £ the MBA convention are: Treas. — Larry Doyle, exec, v.p., State Bank of Maple Plain; Secy.—Jim Talen, pres., Elgin State; V .P .— Bill Rosacker, a.v.p., Marquette Natl., Minneapolis; Pres.—Jim Diebold, pres., Granite Falls Bank, and Past Pres.— Warren Kregness, pres., State Bank of Tower. Dick Peavey, pres., First Northwestern Natl., Faribault; Harry Wahlquist, sr. v.p., Northwestern Natl., Minneapolis; Doug Gallop, pres., First Northwestern Natl., Grand Rapids, and Lor raine and Curt Holmquist, pres., First Northwestern Natl., Winona. Bob Faegre, corr. bk. rep., and Tom Hayden, a.v.p., both with Northwestern Natl., Minneapolis; Pat and Alan Pederson, v.p., £ Murdock State; Lauren Pederson, pres., Murdock State, and his wife, Carol. Pete Ankeny, pres., 1st Natl., Minneapolis; Bill King, 1st North western Natl., Grand Rapids, and Harold Hanson, pres., 1st Natl., Baudette. Seated: Bob Schneider, pres., Farmers State, Elkton; Vance Torgerson, pres., Farmers State, Adams, and LeVine Olson, pres., State Bank, LaSalle. Standing— Al Highum, a.v.p., 1st Natl., Minneapolis; Joe Finley, pres., Janesville State, and Bud w Omlie, v.p., 1st Natl., Minneapolis. N o rth w e s te rn B a n k e r, J u ly 1 9 7 7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 "Forty years of banking has proven to me that prompt, accurate, helpful service produces mutually bene ficial results. A quarter of a century as a Correspondent Banker has also m ade It clear to me that the friend ships m ade with those we serve is the cornerstone of our growth and progress." Art Haessig Vice President American National Bank and Trust Company American National Bank and Trust Company Correspondent Division 5th a n d M innesota Streets St. Paul, M innesota 55101 612/298-6000 M em ber F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s te r n B a n k e r, J u ly 1977 42 Pictures from the Minnesota Convention Bob Sipple, sr. v.p., American Natl., St. Paul; Jim Hansen, pres., Merchants & Miners Bk., Hibbing; Clair Wilcox, pres., Grand Rapids State, and Don Johnson, v.p., American Natl., St. Paul. Don Ryan, sr. v.p., Collateral Control Corp., St. Paul; Paul Bringgold, pres., 1st Natl., Cannon Falls, and Leo Hermes, v.p.reg. sales, Collateral Control Corp., St. Paul. (Collateral Control became new name of NYTCO Services, effective July 1.) Andy Sail, exec, v.p., 1st Natl., St. Paul, and his wife, Ginny; Jim Gowan, v.p., 1st Natl., St. Paul, and his wife, Mary, and Sarah and Bill Duma, pres., Natl. Bank of Minnetonka. Jim Russell, corr. bk. off., 1st Natl., St. Paul; Jim Gesell, pres., Cherokee State, and his wife, Rene; Dick Schurtz, pres., American State, Olivia, and his wife, Shirley, and Ken Heiser, corr. bk. off., 1st Natl., St. Paul. John Knutson, chmn., and Stan Peterson, v.p., both with Midland Natl., Minneapolis, and Jan and Howard Luick, exec, v.p., Oakley Natl., Buffalo. N o rth w e s te r n B a n k e r, J u ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 Bud Cross, a.v.p., 1st Natl., Chicago; Bud Meadley, sr. v.p., Natl. City Bank, Minneapolis, and John Early, v.p., and Norm £ Gustafson, acct. off., both with Citibank of New York. 43 Stan Peterson. A city banker who doesn’t mind mud on his shoes. As head of M id la n d ’s C orrespondent Bank D ivision, Stan spends many a day in the field . . . consulting on location w ith bankers and th e ir custom ers . . . often in factory, barn or field. He may get a little mud on his shoes, but he’s ready and w illin g to be on the scene. He w ants to help your bank extend its services through C orrespondent Banking that is person-to-person as well as bank-to-bank. Stan Peterson is typ ica l of M idland bankers. A lthough he represents an in stitu tio n of financial strength and broad service, he is accessible, know ledgeable, helpful. If you have a question, call him d ire c tly at (612) 372-7067. He can advise you of any of M id la n d ’s many C orrespondent Banking services. Overlines Money Transfer Transit Credit Cards Data Processing Safekeeping Investments Foreign Drafts & Currency Federal Funds Bank Stock Loans Personal Loans Keogh Plan What we offer is right on the money. MidlandNational BankOf Minneapolis The Downtown Bank with Two Locations Second Avenue South at Fourth Street Third Avenue South at Sixth Street Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s te r n B a n k e r, J u ly 1977 44 f T S SJTJ *ü P § r% .iT —* » mw * ■ Ladies of the MBA staff and St. Paul banks who took care of the registration desk. Front row: Linda Forschen, MBA; Marie Masanz, 1st State, and Nancy Daniel, Billye McNeill and Pat Swanson, MBA. Second row: Lorna Schade, 1st NatL; Mary Kay Meehan, A m e ric a ^ Natl., and Margaret Goff and Gloria Nelson, MBA. RIGHT— MBA Pres. Paul Lindholm receives U.S. Savings Bonds award from Cliff Sommers, Minnesota state chrnn. of Savings Bonds and a retired Minnesota banker. M IN N E A P O LIS , MN. ill Money O rders w e1 , m arg inally profili u ntil T ravelers Ex| M0ÌHFT Sue Vogel and Irwin Pentel, pres, of Chex Systems, Minneapo lis, staffed the Chex Systems booth. Marcia Hills, Minneapolis sales rep. for Northwestern Bell Tele phone, explains some equipment to Lawrence Keillor, pres., 1st Natl, of Anoka, while Bill Spence, mktg. mgr. at Omaha head quarters for Northwestern Bell, looks on. N ofor rthFRASER w e s te r n B a n k e r, J u ly 1 9 7 7 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mike Adams and Norman Carlson, Minneapolis, greeted visitors to the Travelers Express Company, Inc., display. Gary Caddoo, Minneapolis, and Ken Knutson, Milwaukee^ staffed the Lawrence Systems booth during the convention. 45 Minnesota Convention Report (Continued from page 38) P a st Presidents Club, retiring M BA • President Lindholm suggested a $10 annual membership fee be adopted, with the proceeds to go toward funding of one or more scholarships at the University of Minnesota ® college of business administration in banking and finance studies. ment of interest on demand deposits by various means, anyw ay—such as premiums, extra services, etc. After co n sid e rin g th e se o th e r p luses already being given demand deposit custom ers, M r. Lilly said, the effect of interest paym ents would not be very great on any banks. Lee Gunderson, chairman of the Demand Deposit Interest A B A communications division and ^ G. M . Pieschel, A B A state vice president of the Bank of Osceola, 9 president for Minnesota and presi W is., also directed his remarks at dent of Farm ers & M erchants S tate the subject of interest paym ent on Bank, Springfield, referred to the demand deposits with his talk, recent meeting of the A B A Govern- “ P arity for Bank Customers and ^ ing C ou n cil d u rin g w hich th e B a n k s.” position paper on interest paym ent Entertainm ent on transaction balances was adopt A report on the 1977 convention ed. T hat position basically calls would not be complete without clearly for parity of ground rules reference to the outstanding enter ^ among all financial institutions, Mr. tainm ent provided. In addition to Pieschel stated. the golf and tennis tournaments A B A President-elect A . A . “ B u d ” which drew record numbers, two Milligan, president of A . Levy outstanding banquet parties were Banking Corp. of Oxnard, C al., offered delegates. On the first night, ^ followed shortly after this with a the banquet was billed as “ A Night detailed explanation of the A B A pro at the P alace.” posal, which has been reviewed in Three entertainers offered singing earlier issues of the Northwestern and comedy in the vein of past Banker. He said there would be no performers who played a t the famous £ change made in this position by Palace Theater in New York City. A B A without another meeting of the The second night banquet featured same large group of representative Roger Williams and his orchestra. bankers. This rousing show went on for one David Lilly, member of the hour and five minutes and concluded • Federal Reserve System Board of with a standing ovation for one of Governors in W ashington, D .C ., A m erica’s premier piano musicians. until Jan u ary 31, 1978, discussed in Winding up the convention a t the general term s the paym ent of Wednesday noon luncheon was the interest on demand accounts. The scintillating columnist, A rt Buch• old reasons for such non-payment, wald, who exhibited a brand of legislated in the depression days, he humor from the platform th at was stated, are no longer valid. He said equally as good as what appears in banks are getting around non-pay- his nationwide, syndicated column. □ The new building will have 8,000 square feet of space on one story. Dawson Bank Announces Building Plans The Northwestern State Bank of Dawson has announced plans for a new building to be located on Block 60 of Main Street. The new facility will contain about 10,000 square feet. Construction will begin in the fall with occupancy scheduled for early 1979, according to Charles L . K retchm an, president. Cannon Falls Bank Names President, Cashier Security S tate Bank of Cannon Falls announced the appointment of M arvin L . Nelson as president and chief executive officer and the election of Jam es M. Cylkowski as cashier. Bill Sutherland will continue in his present position as executive vice president. M r. Nelson formerly was vice president of Golden Valley S tate Bank and also has been with the F irst National Bank of S t. Paul. He is a graduate of South D akota State University and has been in banking for 20 years. M r. Cylkowski joined the bank after serving as assistant cashier at the F irst National Bank of H astings. Orín Samstad Funeral services were held recent ly for Orin Sam stad, 73. He was a former president of the N orthw est ern National Bank of H astings. To Head Windom Bank Wayzata Bank & Trust Adds Two to Staff W ayzata Bank & T ru st Company has announced the additions of Robert M. W eiss as commercial • len d in g officer and Steven R. Scofield as instalm ent loan collector. M r. W eiss began his career in 1970 with the Red River National Bank & T rust of Grand Forks. He was • transferred to F irst Bank System as an exam iner and in 1975 joined F irst https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ou glas D av id so n h as been named president and managing Southdale National Bank of Edina. officer of the F irst National Bank of M r. Scofield formerly was with W in d om . H e su cceed s M arw in Fidelity A cceptance Corporation. Brown, 55, who has been named vice president of F irst Bank System ’s banking division. M r. Davidson has Construction Begins been with F irst Bank System since On Crosby Bank 1961 when he began his career at the A groundbreaking ceremony was F irst National Bank in Bozeman, held recently at the site of the M ont. He was elected assistant vice c o n s tru c tio n of th e new F i r s t president in 1970. In 1972 he was National Bank building in Crosby. elected vice president of The F irst Completion is estim ated for the first National Bank of H avre, his m ost of the year. recent position. N o rth w e s te r n B a n k e r, J u ly 1977 gga A ::, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ‘Any bank w ill lend you an umbrella when the sun is shining.” Bill Bieber is President and Chief Exec utive Officer of Acrometal, a multi-million dollar manufacturing company. It’s a com pany his father bought some 20 years ago... with the help of the First National Bank of Minneapolis. Here’s the story: “My father had an opportunity to buy Acrometal and went to several banks seeking a loan. Other banks thought he could get the company for less than he felt he needed, but First Minneapolis didn’t try to second-guess h im ...o r run his business. They trusted him, loaned him the money, supported him during those early critical years. And they’ve stood be hind us ever since. ‘First Minneapolis has been the financial strength behind us which has allowed us to capitalize on many worthwhile growth opportunities. They’ve introduced us to some excellent acquisition prospects such as our Continental Castings subsidiary and our Abrasive Engineering and Manufacturing Division. A n d , they’ve been more than a place to put money and borrow money. We’ve used them to open and negotiate letters o f credit and hedge our foreign exchange exposure. They’ve never let us down!' Of course, First Minneapolis is not big on giving money away. But, we are ready to back your good ideas and take part on a long-term basis with additional financial help. Both in good times and bad. We’d like to talk to you about your company’s needs. Our corporate banking officers are well , established, dedicated professionals who think your business ideas deserve a chance to grow. And, as with Bill Bieber, we want to be a part of your growth, your future, your success. “They deserve a lot o f credit!' So do you... rain or shine. ‘ t m First Minneapolis Member of First Bank System First National Bank of Minneapolis •Corporate Banking Division, 120 South Sixth Street, Minneapolis, Minnesota 55402 •612/370-4320 •Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minnesota News 48 Colorado Rocky Mountain SU M M ER W ILD ERN ESS EX P ER IE N C E Your chance to get back to nature - at your own pace Planned activities, with expert guidance and all equipment furnished, gain an understanding of the outdoors and yourself. VIEWING the model of National City Bank of Ridgedale’s planned bank and office build ing project are (I to r): Joe A. Walters, dir.; Thomas H. Hackett, v.p. & cash.; Edward E. Mueller, dir.; Donald M. Jerpbak, pres.; and Clifford M. Roberts and Simon R. Navickas, dir. HIGH COUNTRY INN, located in Arapaho National Forest, 67 miles west of Denver, offers deluxe accommodations (Best Western approved) and an excit ing week" • C O L O R A D O R IV E R W H I T E W A T E R R A F T T R IP • M O U N T A I N H IK E • P E A K C L IM B • S A IL IN G • O V E R N IG H T B A C K P A C K S e a so n M ay 3 0 — O c to b e r 31 All activities geared to the in dividual. There’s fun for one and all the family (young or old). One rate covers everything. 7 day & 5 day packages available Contact the HIGH COUNTRY INN, direct or call Best Western Tour Reservations T O L L FREE 8 0 0 - 5 2 8 - 1 2 3 4 High Country Inn Post Office Box 96 Winter Park, Colorado 80482 Phone 303-726-5566 Denver 573-1082 Tell me more! I’m interested in all inclusive package price for Adult Children for the dates_________to ______________ or optional dates________ to ___________ Name _________________________________ A dd ress_______________________________ City____________________________________ State _________ Zip Northw estern B a n k e r, Ju ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _ 1977 Ridgedale Bank To Build Drive-In A PPRO VA L has been granted by the Minnetonka City Council and the board of directors of National City Bank of Ridgedale to construct a drive-in bank facility as the first phase of a future multi-purpose bank and office building project, according to Donald M. Jerpbak, bank president. The drive-in facility will be located at 1809 South Plymouth Road, adja cent to Ridgedale Shopping Center where the bank currently maintains its # main office. Scheduled for a late summer open ing, the new facility will occupy 1,100 square feet of space and feature three drive-in lanes. A lobby walk-up area # and ample customer parking will also be provided for more customer con venience. Sauk Rapids Bank Names Assistant Vice President community project. The funds will be provided to merchants in the central business district redevelopment area for building restoration, external fur nishings and improvements, according to G. William Jude, bank president. Mark A. Fasse recently was ap pointed assistant vice president and manager of the real estate mort gage department of the Northwest ern State Bank of Sauk Rapids. Mr. Fasse began his banking c a r e e r with Banco Mort gage Company in Waterloo, la., in M. A. FAASE May of 1973. In 1974 he was transferred to the com pany’s St. Paul office and in 1976 to the wholesale office in Minneapolis where he served as assistant secretary. Hopkins Bank Expansion The First National Bank of Hopkins is in the process of a $2 million expan sion which will transform its present one-story building into a 50,000 square foot, three-story facility. In connection with the remodeling, the bank is making available $500,000 at 6% simple interest for a special Duluth Bank To Begin Remodeling, Skywalk A million-dollar remodeling pro gram at First National Bank of Duluth, which will permit simultane ous construction of the first leg of the downtown Duluth skywalk system, re cently was announced by Dennis W. Dunne, president. The project will provide for passage of a pedestrian concourse directly through the center of the bank’s facilities on its first and second floors. This will provide a link between the skywalk from the Duluth Arena-Audi torium, which enters the bank’s park ing ramp and bridge and the skywalk bridge to be built over Superior Street this summer between the bank and the Lyric Block development. Construction will begin immediately with completion expected in early 1978. 49 OHN C. Timmermann, Jr., of New York City has joined First Na tional Bank of Minneapolis as vice president in the trust investment department. H e will have charge o f n a tio n w id e marketing of asset management ser vices. M r. T im m e r mann was with the United States J. C. TIMMERMANN Trust Company in New York City since 1966, and most recently was head of the sales and mar ket planning department. J Michael Hoover has been elected vice president of First System Agen cies, Inc., the in su ra n c e a g en cy affiliate of First Bank System, Inc. Mr. Hoover be gan his career in 1966. In 1972, he joined First Sys tem Agencies as a liaison repre sentative with priM h o o ver mary responsibili ty for installing the computer system. He was promoted to liaison officer in 1973 and to assistant vice president in 1975. One hundred thirty-six arm wres tlers from the area recently competed in the annual Northeast Tea & Arm Wrestling Championship sponsored by the Northeast State Bank. The com petition was held in the bank’s parking lot. Other highlights of the event were entertainment by the Edison High School Marching Band, the Chris Kalogerson polka band and the Dolina Polish Folk Dancers. About 1,200 people attended the event. Bob Rasmussen is president of the bank. T. H. Bartholomay, president of the First Minnehaha National Bank, has a n n o u n ced the elections of three officers. They are: Donald G. Rademacher, assistant v ic e pr e s i de n t ; Stephen C. Erdall, real estate loan of ficer, and Wayne E . Moss, sales fi nance officer. D. G. RADEMACHER M r. R a d e macher joined the bank in October, 1976, as a commercial loan officer from the First Security National Bank, St. Paul. He is a graduate of Mankato State College and the University of Minnesota. Mr. Erdall began his bank ing career in April, 1975, as a real estate loan counselor and trainee. He was graduated from St. Cloud State College. Mr. Moss joined the bank from the First National Bank of Vir ginia where he was assistant cashier in instalment loans. He has a BS de gree from the University of Minnesota. Mark Harris has been elected vice pr e s i d e n t a n d manager of the credit card center of First System Services, Inc., a service subsidiary of First Bank Sys tem. He formerly was assistant vice president, person al banking serm . Ha r r is vices, at the First National Bank of Kansas City, Mo. Charles A. Russell, president of Third Northwestern National Bank of Minneapolis, has announced the elec tions of Sandra M. Weiler to credit of ficer and Terrence McCleary to instal ment loan officer. Ms. Weiler began her banking ca reer at the Northwestern National Bank of Minneapolis in 1964 as a loan analyst. She joined Third Northwestern in 1975 and has served as credit super visor. Mr. McCleary also began at Northwestern of Minneapolis in 1973. He joined his present bank in 1976 and has been working in instalment loans. Robert E. Sipple, senior vice presi dent, American National Bank and Trust Company, St. Paul, recently was elected presi dent of Junior Achievement (JA) of St. Paul, Inc. Mr. Sipple has been vice presi dent , t r e a s u r e r and an active member of the St. R. E. SIPPLE Paul JA board. He has chaired the committee for the JA fund drive campaign, the adviser recognition dinner and the counseling firm committee. N orthw estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B an ke r, July 1977 50 Minnesota News Energy Efficient Home at First Minneapolis AN energy efficient home that can reduce heating expense by 50% and cooling costs by 55% was erected as a public service on the plaza of First National Bank, downtown Minneapolis. Some 4,000 persons toured the home on opening day. Conventional in design, the home features five different types of insulation, triple-glaze windows, a solar-assisted hot water unit and the latest in electronic temperature and humidity controls. The house was displayed on the plaza for a month and then moved to suburban Plymouth for sale. DeWalt H„ Ankeny, Jr., is the bank’s president. First Bank System, Inc., has an nounced the following appointments: Douglas J . Hajek, loan participation and allocation officer; David J. Prochaska, resources management officer; Jon D. Garnaas, consumer banking of ficer, and Richard H. Rolfstad, per sonnel officer. Mr. Hajek joined First Bank System in 1972 and most recently was as sistant vice president at the National Bank of South Dakota, Rapid City. Mr. Prochaska joined the system’s in vestment department in 1976 as an in vestment administrator. Mr. Garnaas began his career as an adjuster at the First National Bank of Hopkins in 1972 and most recently was a person al banking officer. Mr. Rolfstad joined First Bank System in 1973 as an of ficer trainee at the First Bank of North Dakota-Grand Forks, where he most recently served as marketing officer. * * * Lakefield Bank To Build The First National Bank, Lakefield, will construct a new building, accord ing to Harold Thornburg, president. The 64 by 82 foot structure will pro vide a drive-up facility as well as office and lobby area. Planview Bank To Expand The Peoples State Bank, Planview, has begun construction of an addition which will double the size of the facili ty and provide a drive-up unit. Com pletion date is scheduled for October. Mankato Bank Adds To Building, Remodels A comprehensive remodeling and expansion project at Valley National Bank, Mankato, has more than dou bled the bank’s interior, according to John N. Maiers, president. Included is a new teller line, carpeting and mod ern furniture and furnishings. Lester H. Lipke Marvin W. Chappie, assistant cash ier of the St. Anthony Park Bank, has been elected president of the St. Paul Chapter of the American Institute of Banking (A IB). He joined the bank in 1958 in the proof and bookkeeping department. In 1968, Mr. Chappie be came a bank officer. N o rth w e s te r n B a n k e r, J u ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 Funeral services were held recently for Lester H. Lipke, 62, president of First State Bank, Stewart. Mr. Lipke joined the Currie State Bank in 1936 and was with the State Bank of Buffalo Lake from 1937-44. Then he joined the First State Bank of Stewart becoming president in 1948. Work Begins on Addition To Battle Lake Bank The First National Bank of Battle Lake is constructing a 1,950 square foot addition to its facility. The addi tion will include an expanded lobby and teller stations, two offices and ma chine processing room with fireproof storage. Marshall Bank To Expand Construction has begun on a $300,000 expansion for the First Northwest ern National Bank of Marshall, ac cording to John Suedbeck, president. The new addition will double the size of the main banking floor and will be used for customer service and the per sonal and commercial loan depart ments. Completion is expected by Decem ber 1. State Bank of Worthington Elects Two Directors The State Bank of Worthington has announced the election of two new members to its board: William Veldhuizen and L. B. Eickhoff. Mr. Veldhuizen has farmed at Woodstock since 1955 and has been mayor of the city for seven years. Mr. Eickhoff is president of the State Bank of Adrian. Minnesota News RMA Publishes Survey Of Loan Charge-offs Robert Morris Associates (RM A) has published the results of its sixth annual survey of commercial loan charge-off experience of its member banks. The statistics are for the year ending December 31, 1976. This report for 1976 is divided into two sections. One provides data on do mestic loans and the other on interna tional loans. The domestic section includes gross charge-off, recovery, and net charge-off figures, the distribution of charge-offs by numbers of loans and by dollars involved, and a ranking of high-loss industries in 1976. The data are ar rayed by bank asset size and by Fed eral Reserve Districts. The statistics in the domestic sec tion are based on data contributed by 877 RM A member banks, over half of the association’s membership. The participating banks had average com mercial loans outstanding aggregating almost $212 billion. This represents an estimated 65 % of the average total domestic commercial loans held by U.S. banks in 1976. Included are data from 93 of the top 100 banks in the country. The international section presents gross charge-off, recovery, and net harge-off data for three bank size ategories. It also gives an indication f aggregate charge-off experience by ountry and by type of borrower. Survey reports of 142 RMA membanks were used for the internanal section. They had average interional loans and deposits outstandjfg of over $160 billion in 1976, and 87 of them were in the top 100 U.S. banks, by deposits. A free copy of the report was sent in May to the chief executive officer and the RMA accredited representa tive of each of the association’s 1,730 member banks. Other copies are avail able from the RM A Order Depart ment, 1432 Philadelphia National Bank Building, Philadelphia, Pa. 19107. The price is $5 to RMA mem ber banks and $7.50 to non-members. Fed Plans Consumer Compliance Program ® The Board of Governors of the Federal Reserve System announced es tablishment of a system-wide program designed to improve compliance by ^ member banks with consumer credit protection laws and regulations. W OM EN IN BAN KIN G By DONNA M. McPHERSON Assistant Cashier First National Bank Elk River, Minn. D. M cP h e r s o n R EER in banking began at M YtheC AFirst National Bank of Elk River in 1944, in the middle of World War II. I was a teller-bookkeeper, starting at a monthly salary less than what I had been getting per week at my previous job. Sometimes as I look back, I wonder why I took the job, and to this day I still don’t know the an swer. I later was secretary to the executive vice president of the bank, then execu tive assistant and have been assistant cashier for three years. The banking industry finally has rec ognized that women are capable of be coming bank officers. However, I feel that on the overall pay for women is still not equal to that for men, even when both are doing the same work. More women directors are needed. It has been proven that women in the family do most of the banking. Women on bank boards might be able to make some policy changes which would help both women employees and customers. I would definitely recommend bank ing as a career to my daughters. In fact, my oldest daughter went into banking right out of high school. She, however, worked in a big city bank rather than a small town bank. If I had it all to do over again, I would still go into banking. However, I would try to work more with invest ments as I feel this is where the chal lenge is for me. The program entitled “Consumer Compliance and Education Program of the Board of Governors of the Fed eral Reserve System” has two main parts: — A program designed to educate all member banks, both state and national, in the requirements of consumer credit protection laws. — A companion program to con duct special examinations of state member banks to assess compli ance with consumer laws by ex aminers especially trained for that purpose. Examiners who find what they re gard as evidence of discrimination in credit transactions will report all find ings to the appropriate Reserve Bank. The Reserve Bank, in consultation with the board’s division of consumer af fairs, will determine whether addition al investigation is needed. BLANKET SINGLE INTEREST IN •• Autom obiles T rucks (2 ton or less) Household Goods Farm M achinery M otorcycles for in stallm en t lo a n s o , M o b ile Homes RECREATIONAL VEHICLES Snowmobiles Boats and Motors Travel Trailers M o tor Homes P R O T E C T THESE L O A N S A G A IN S T P H Y S IC A L D A M A G E LOSSES call or write: G.D. VAN WAGENEN CO. 1006 Northwestern Bank Bldg., Minneapolis, Minn. 55402 (612) 333-2261 Northw estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 B a n k e r , J u ly 1977 People have been calling us nam es for over half a century. ■i i https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Collateral Control Corporation is our new name* We think it’ll be easier for you to remember the business we’re in if the business we’re in is in our name. So our new name says what we do. Collateral Control Corporation. We’re one of the world’s oldest financial companies specializing in collateral control services. You’ve known us in the past as NYTCO Services, Inc., the outgrowth of St. Paul Terminal Warehouse Company, founded in 1916; New York Terminal Warehouse Company, organized in 1936; and Haslett Field https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Warehousing, founded in 1913. Our services embrace many aspects of commercial lending and financing activities including Field Warehousing, Inventory Certification Control, Credit Security Service, Accounts Receivable Certification, Document Supervision Service, Floor Plan Audits and full service Bank Participation leasing. All are designed to protect your yields and help you make good loans. Next time you’re thinking about third party collateral control services, you’re already thinking about our name. So your next move is as simple as a phone call. Just dial 800/328-1434 (toll free) and we’ll put you in touch with one of our 35 nationwide offices in a matter of minutes. Or, drop us a line beforehand. W e’ll send you complete information on how we can provide the security you need to collateralize your loans. Collateral Control Corporation, 444 Lafayette Road, St. Paul, Minnesota 55101. We give our correspondents in the Midwest three things no other bank can» Ted Axton, Rich Akin and Alike Byrne. They’re all yours. The collective experience, dedication and knowledge of three full-time professionals, backed by top management commitment and the extensive facilities of one of the finest banks in Chicago. Most banks provide the same basic package of correspondent services. Cash letter analysis, over- line assistance, computer capabilities. But the American National Bank offers its correspondents all that and Mike, Ted and Rich, too. These men know' the territory and can respond quickly to your needs. So if you’re a bank in the Midwest that wants more from its correspondent relationship, call Ted, Rich or Mike. At American National Bank. American National Bank and Trust Company of Chicago 33 North La Salle / La Salle at Wacker 60690/Phone (3 1 2 ) 661-5000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 IBA OFFICERS— Seated from left are Past Pres. Ray Livasy, and Pres. John R. Montgomery. Standing from left are 2nd V. P. Gavin Weir, and 1st V.P. B. F. “Chip” Backlund. Edmond J. Arseneault, treas., was not present. John R. Montgomery To Head Illinois Bankers; EFT Program Expands • By MALCOLM FREELAND Publisher OHN R. M ontgom ery, I I I , pres ident, Lakeside Bank, Chicago, was elected president of the Illinois Bankers Association a t the 86 th annual convention held in Chicago last month. He succeeds R ay Livasy, president, Millikin National Bank, D ecatur. Elected with M r. M ontgomery were: first vice president, B . F . “ Chip” Backlund, president, Bartonville Bank; second vice president, Gavin W eir, chairman and president, Chicago City Bank & Trust Co., and treasurer, E . J . Arseneault, president, Soy Capital Bank & T rust Co., D ecatur. J ^ ^ ^ ^ ^ ^ £ Transaction A ccounts Stephen S. Gardner, vice chair man, Board of Governors, Federal Reserve System , W ashington, D .C ., told the bankers th at he expected a Congressional bill to be introduced to provide an orderly transition to interest paym ents on transaction balances. Explaining the details, he said, “ I t will provide for a special class of accounts for individuals similar to NOW accounts. It will https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis guide the developments carefully, providing for a y ear’s lead time. It will recognize competitive balance by providing for similar reserves and similar rate ceilings for all depository institutions. I t will address transi tion costs and explicit interest costs by providing th at interest be paid on the reserves required to be held against such accounts. It will also provide for the payment of interest on all transaction account reserves held by the Federal Reserve. I t will phase in the reserve requirement for non-members of the Federal Reserve S y s te m th a t now offer NO W accounts. I t m ay also restrict the ceiling rate on accounts to something less than the passbook savings rate with tem porary grandfathering in New E n glan d .” The new type of account th at could be offered by banks and other financial institutions was approved by the A B A Governing Council in its spring meeting at the Greenbriar. Since th at time, A B A officials have appeared at nearly every state convention to explain the importance of it. M ost states have endorsed the A B A plan, but the Illinois Bankers Association mailed a questionnaire to its membership before doing so. Independent bankers are opposed to the plan for the m ost part, and the Independent Bankers Association of America has taken a stand against paying interest on demand accounts. C arter Econom ics Dr. W alter Heller, regents’ profes sor of economics, University of Min nesota, told bankers th at President Carter is a lot more conservative th a n m o st people th in k . He described the president as a cautious activist. Dr. Heller sees inflation up about 6 % in the next 12 months, and the real growth rate up by 5 or 5 V2 % . Long term rates won’t rise significantly this year, and short term rates will rise modestly, accord ing to Dr. Heller. No recession is in sight. R. C. Thompson, vice president, finance, Shell Oil Company, told the IB A th at “ the energy business is high risk and capital intensive by n atu re.” Quoting figures from Chase M anhattan Bank, N .A ., he said the N o rth w e s te r n B a n k e r, J u ly 1977 SPEAKERS (from left)— Robert C. Thompson, v.p., Shell Oil, Houston; Howard K. Smith, ABC-TV, New York; Stephen S. Gardner, vice chmn., Federal Reserve Board, Washington, and Dr. Walter Heller, prof, of econ., Unlv. of Minnesota, Minneapolis. petroleum industry will need about $26 billion over the next 10 years in the way of capital for domestic pro duction. Additional capital demands will come from the auto industry (to make smaller, more energy efficient cars); the home building industry (for better insulated homes), and from factories and utilities (to convert to coal). Speaking on the incidence of crime, Governor Jam es R. Thomp son reaffirmed his plan to sign legis lation reinstating the death penalty in Illinois when it reaches his desk. The governor favors a new class of felony offenses - Class X - for commission of a crime with a dangerous weapon. Conviction of a Class X felony would bring a mandatory sentence of six years to life. Three Class X felony offenses would mean an autom atic life sentence ... no probation ... no parole ... ever. E F T Progress An update on Electronic Funds Illinois, In c., was presented by Dan Quigley, chairman of E F I and execu tive vice president of the National Boulevard Bank. As of the conven tion, there were 650 banks signed as m em b ers. Tw o sem in ars w ere scheduled for late June for bankers th at had not as yet made a decision to participate. B y year-end, E F I officials hope to have another 100 member banks. The organization is bank-owned, bank-operated, and one in which equal participation by all members is the key in serving each member bank’s respective market. Keynote speaker for the 1977 IB A convention was Howard K. Smith, A BC-TV news correspondent. M r. Smith reviewed past achievements made by Am erica, and described what he feels are our m ajor problems ahead. Listing the energy crisis, the w orldw ide p o p u latio n ex p lo sio n , possible feeling of isolation prom pt ed by Vietnam and crime and drug problems in our major cities, Mr. Smith suggested th at we will need s tro n g will and lead ersh ip to continue as a world leader. The 86 th annual convention con cluded with a banquet followed by d an cin g to T he G lenn M iller Orchestra. □ • • • • ® 50 YEARS AWARDS— Shown from left are recipients of 50 year awards: Bernice Zauer, Metropolitan Bk. & Tr., Chicago; Marion Ellsworth, Manufacturers Bk., Chicago; Erling Peterson, The Winnetka Bk.; Ray Till, First Nat I. Bk., Mt. Prospect, and Carl E. Bauer, Du Quoin Natl. Bk. Pres. Ray Livasy is presenting lapel pins. RIGHT— Dan Quigley, e.v.p., Natl. Blvd. Bk., Chicago; IBA Pres. Ray £ Livasy; Paul Utterbach, pres., The Bank of Alton, and Fred Payne, pres., Deerfield St. Bank. N orthw estern B a n k e r , J u ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 LEFT— Ron Grayheck, exec, v.p., American N.B. & Tr. Co., Chicago; Charles Baum, Green Rock, and Earl Ash, pres., Henry Co. Bk., Green Rock. RIGHT— Dave Stoecker, v.p., and Dan Jasper, v.p., Mercantile Tr. Co., St. Louis; Frank Farrar, vice chmn., First Bk. & Tr. Co., Cairo, and Phil Hummer, Wayne Hummer & Co., Chicago. LEFT— Mrs. Frank Farrar, Cairo, III. and Brittain S.D.; Ralph Taake, pres., First Bk. & Tr. Co., Cairo; George Barr, pres., Drovers Nat’l. Bk., Chicago; Pat and Bud Singer, pres., Central Nat’l. Bk., Mattoon. R IG H T -J o e Valenti, sr. v.p., Drovers Nat’l. Bk. Chicago; Curtis Yarrington, e.v.p., First St. Bk. of Biggsville; Dick Griffith, a.c., Drovers Nat’l. Bk., Chicago, and Don Bailey, pres., Table Grove St. Bk. Bank of Cherry Valley ^ To Establish Facility The Bank of Cherry Valley has received permission to establish a facility under the new Illinois law. It will be located in Rockford about two • miles from the main bank. Plans call for a drive-up to accom m odate five lanes and a lobby with four teller stations, according to Jam es E . Sheridan, president. • Glen Ellyn Bank Wins Advertising Award The F irst Security Bank of Glen 9 Ellyn has been awarded the “ E a g le ” award, presented for excellence in n ew sp ap er a d v e r tis in g by th e Chicago Financial Advertisers As^ sociation. Dennis E . Kobe, assistan t vice https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis president, received the award for Jam es E . Burgess, president, at the ceremonies. Receiving a companion “ E ag le” was Jam es E . Turner, vice president of marketing and sales for Naperville’s F irst Ogden Corpora tion, the bank’s agency. auditing, E D P audit and compliance auditing. Seek Ways To Increase Mortgage Lending The American Bankers A ssocia tion (A BA ) has announced it will fund a m ajor study to “ examine and Joins BAI recom m en d im p roved se co n d a ry Lawrence J . Schissel has joined m ortgage m arket facilities.” Bank Administration Institute, Park Dean H . Boyes, chairman of the Ridge, as vice president and director study steering committee, says the of the audit program s group in the examination will be divided into banking services division. He is the three p arts: “ the first looking at former auditor of the Alaska State c u rre n t m a rk e t o p e ra tio n s and Bank in Anchorage, and previously impediments, the second a t feasibil was assistant auditor for Wells ity of new m arket instruments or Fargo Bank in San Francisco. organizations and the third at The audit program s group is implications pertaining to increased responsible for all B A I educational, inner city lending.” re s e a rc h and re g u la to ry liaison Interim results from the study’s activities in the areas of general bank first phase are expected in A ugust. N orthw estern B a n k e r , J u ly 1977 58 Illinois News dent, and Arlene Rotoloni, personnel officer. * * * Charles M. Riker, pres., State Bank of Herscher, is pictured at extreme left in this photo with other members of the bank staff. Herscher Bank Observes 75 Years State Bank of Herscher recent T HE ly celebrated its 75th anniversary with an open house and awarding of prizes, according to Charles Riker, president. Located at 105 S. Main, the first bank opened May 20, 1902, in a build ing purchased for $4,000. The present building at the corner of Main and Kankakee Streets was built in 1954, with an addition including a drive-up window, completed in 1970. C h ica g o News P IT O L Bank of Chicago has an CAnounced the following promotions and appointments: Nicholas J. LaPetina, vice president and controller; Sheldon Bernstein, vice president and head of the commercial loan depart ment; Richard L . Tibbies, assistant vice president and head of the instal ment loan department; Alan B. Fine, from assistant cashier to assistant vice president, operations, and Conrad Wika, commercial lending officer. Mr. LaPetina has been in banking for 36 years. He is a graduate of Rutgers University. Mr. Bernstein, for merly a senior examiner with the Fed eral Deposit Insurance Corporation, received his B S in finance from the University of Illinois in 1969 and his M BA in financial management from Loyola University in 1972. Mr. Tib bies formerly was with the Lake Shore National Bank of Chicago. N o rth w e s te rn B an ker, July https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 Samuel Wm. Sax has resigned as chairman and chief executive officer and director of Exchange National Bank and chairman of the executive committee and director of Exchange International Corp., the bank’s parent firm. John S. Samuels III, a New York financier who acquired control of the firms in April, 1976, after buying 16.6% of the shares outstanding of E x change International held by the estate of Mr. Sax’s father, will succeed Mr. Sax as chief executive officer. Mr. Samuels remains chairman of the holding company and Phillip M. Lewin continues as bank president. Mr. Sax, 43, has been associated with the bank for more than 20 years and became president and chief execu tive officer in 1956. He moved up to chairman in 1975. In addition to resigning his posts, Mr. Sax said he has agreed to sell the 11 % of Exchange International’s shares held by him and his children to Mr. Samuels. Mr. Sax will continue as co-chair man of American Israel Bank, Ltd., a joint venture of Exchange Interna tional and the Bank Hopoalim of Is rael. * * * K. Brooks Abernathy has been elected to the board of directors of American. National Bank & Trust Company of Chicago. He is chairman and chief executive officer of Bruns wick Corporation. * * * The Chicago Bank of Commerce has announced the following manage ment changes: Ronald F . Trafton, cashier; Vittorio Laudati, vice presi John L. Cooley has joined the Mer chandise National Bank of Chicago as president, accord ing to George B. Everitt, chairman. Mr. C o o l e y , from 1963-65, served as director o f Merchandise National’s m a r k e t i n g depart ment. In 1965 he was named presi dent of Aetna State Bank and four years later be came president of United of America Bank, both in Chicago. He most re cently was senior vice president of the Fourth National Bank and Trust Com pany of Wichita, Kans. Mr. Cooley serves on the board of the Mid-America Automated Clearing House Association of Kansas City, is chairman of the Kansas Bankers As sociation standing committee on E FT S and is a member of the Nation al Automated Clearing House Associ ation. * # * Lake View Trust and Savings Bank has announced the election of Richard K. Maguire and the promotion of Ken neth J. Bieschke, both to vice presi dents in the marketing department. Mr. Maguire had been with Ameri can National Bank, Chicago, since 1974, most recently as vice president of retail administration. Mr. Bieschke is responsible for busi ness development and administering the bank’s officer call program. He be gan his career at Lake View Bank in 1938 as a messenger. He moved through the ranks of assistant manager of bookkeeping, auditor, officer as signed to public relations and new business development and in 1965 was promoted to assistant vice president. * * * Chicago City Bank and Trust Com pany recently elected Gavin Weir chairman in addition to president and chief executive officer. The position of chairman has been vacant since 1970 when Mr. Weir joined the bank in his present capacity. He also serves as president and chief executive officer of Chicago City Bancorporation, Inc., and Chicago City Investment Com pany. 59 Promoted by Peoria Bank First National Bank of Des Plaines Des Plaines Bank Opens in New Home OWNTOWN Des Plaines recently r>piphrnti>ri thp. celebrated the nnpnincr opening nf of thp the new home of the First National Bank with a ribbon-cutting ceremony, ac cording to Arthur R . Weiss, president. The grand opening is a major step in the completion of “Superblock,” which consists of the bank building and the Des Plaines Mall, now under construction. Work began in 1975 and the bank now occupies the first three floors of the 10-story building. All bank levels will be connected to the three-level climate-controlled Mall. The remaining floors of the building will be leased. D First Galesburg National To Build New Facility Richard M. Bishop, president of First Galesburg National Bank, has announced that the bank will build a new facility on three acres at the inter section of North Henderson Street and Carl Sandburg Drive. Total cost will be about $1 million. R. E. Lundeen Construction Com pany has been selected as the general contractor. The new office will have eight driveup windows, one commercial drive-up window, six inside teller windows and two after hours windows. In addition, the bank’s Mall Bank Machine will be moved to the new facility. Anticipated completion of the build ing is late in 1977. Evanston Bank Sponsors Bike Safety Day About 250 youngsters turned out at https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the second annual Bike Safety Day sponsored by Evanston Bank and the Dr. Jazz Old Fashioned Ice Cream Parlor. The children had their bikes’ safety gear checked by a local bike shop and Evanston police registered 144 bikes that previously had been un signed. The bank paid the 50 cent reg istration free for each participant. Elmhurst National Names Marketing Officer Thomas F. Franklin has been ap pointed marketing officer of the Elm hurst National Bank, according to Donald M. Carlson, president. Mr. Franklin began his career at the Union National Bank and Trust Company in 1971 as instalment loan officer and marketing manager. From 1976-77 he was with the First National Bank of Elgin as managing officer, commercial services, where he served on the bank’s commercial loan review board, new products and marketing committees. Commercial National Bank of Peo ria has announced the promotions of Roger P. Allen to vice president and controller and Charles F. Nordbusch to vice president. Before joining the bank in 1971, Mr. Allen was with Peat, Marwick, and Mitchell in Chicago and Cater pillar Tractor Co. He was named as sistant controller in 1972 and con troller in 1973. Mr. Nordbusch joined the bank in 1941. In 1947 he became manager of the bank’s proof and bookkeeping de partments, in 1949 was transferred to trust operations and in 1954 was pro moted to assistant cashier. He was named assistant vice president in 1961 and trust officer in 1967. He will con tinue as head of trust operations. Named Controller at Roselle The Roselle State Bank and Trust Company recently appointed Howard J. Stanke control ler. Prior to join ing the bank, Mr. Stanke was assis tant cashier of Golf Mill State Bank and previ ously was auditor of L i b e r t y v i l l e National B a n k . He is a finance H j stan ke graduate of the University of Illinois. Palatine National Builds 6 Drive-up Lanes Ground was broken recently at the site of new drive-up facilities for the Palatine National Bank, according to Willis A. Glassgow, president. The bank is installing six tollway-style service lanes to extend out from the main bank’s north wall, where three drive-up windows are now located. Construction Begins on Gilman Bank CONSTRUCTION has begun on a new building for the First National Bank of Gilman. The contemporary brick and stone building, designed by Illinois Bank Building Corpo ration, harmonizes with the large, wooded site chosen for the project. Max Howard is the bank's executive vice president and James Forest is cashier. Northw estern B an ke r, July 1977 60 Speakers M ark H . Willes, 35-year old new president of the Federal Reserve Bank of Minneapolis, delivered the first major address. His excellent talk is reviewed in depth in a special feature article in this issue. Mr. Daner gave members an update on bank-related bills th at were passed in the recent North Dakota legislative session, and also reviewed a number of other bills introduced which were not approved. A new regulation from the North Dakota banking departm ent was an nounced a t th e sam e tim e . Effective Ju ly 1, it limits the borrowing of Fed funds by a bank to an am o u n t n ot exce e d in g th e borrowing bank’s combined capital OFFICERS of the North Dakota Bankers Association for 1977-78 are pictured, left to funds. No bank, M r. Daner said, right: Immed. Past Pres.—Carlyle P. Austinson. exec, v.p., Northwood State; may borrow more than th at amount Pres. — Henry N. Ness, sr. v.p. & ag rep, Fargo Natl. B&T; 1st V. P.—Wayne A. Stroup, cumulatively from one or more pres., Garrison State; 2nd V. P. — Morris T. Nelson, pres., Scandia American Bank, banks. Some banks, it was reported, Stanley; Treas.—Gerald P. Wilier, pres., Bank of Kirkwood Plaza, Bismarck, and had been borrowing Fed funds in Secy. — Bill Daner, Bismarck. amounts four and five times their capital funds by going to several banks. William K . Dabaghi, assistant legislative counsel for the American Bankers Association, reviewed the recently adopted A B A position on interest on demand accounts, as well By BEN HALLER, JR. as pending federal legislation being Editor considered by Congress. Henry Ness Elected President of NDBA E N R Y N. Ness was advanced to the presidency of the North Dakota Bankers Association on M ay 24 during the 92nd annual conven tion of N D BA in Fargo. M r. Ness is sen ior v ice p re sid e n t and ag representative a t Fargo National B an k & T r u s t C o m p an y . He succeeds Carlyle P . Austinson, executive vice president of Northwood State Bank. Three other men were elected officers to serve with M r. Ness during the 1977-78 term . They are: first vice president—W ayne A. Stroup, president, Garrison S tate Bank, Garrison; second vice presi dent—Morris T. Nelson, president, Scandia American Bank, Stanley, and treasurer—Gerald P . Wilier, president, Bank of Kirkwood Plaza, Bism arck. William J . Daner, B is marck, continues as secretary in the headquarters office. R. C. W iper, director of The Bank of Tioga and the F irst National Bank of Bowbells, was honored a t the banquet with a plaque for his 50 H N o rth w e s te r n B a n k e r, J u ly 1 9 7 7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Kenneth W . Leaf, regional admin istrator of national banks, Minnea years of service in the banking polis, gave a brief review of new industry. Four other bankers were procedures in national bank examipresented plaques in recognition of nations. “ The new look in the bank their 40 years of service in the exam iner,’’ he stated, “ is to be in d u s try . T h ey a re : O. V ince interested in what you are currently S te n e h je m , v ice p re sid e n t and doing, what you can reasonably be cashier, F irst International Bank, expected to do, and is moving away W atford City; Charles N. Davis, from an audit of transactions to one president, The F irst S tate Bank of th at evaluates the entire bank and C an d o; M . R . S m eru d , v ice its machinery of final production.” president, F irst National Bank, Mr. Leaf said examiners now will Milnor, and Inez Madden, executive examine each bank from the top vice president, Farm ers S tate Bank, down—its policies, practices, proce Ypsilanti. dures and system s. Minimal test Well-deserved plaudits were given checks will at least be done to make to all the committee members from sure of compliance with proper Fargo who took part in planning and auditing. The exam ination’s overrids ta g in g th e co n v e n tio n . E v e ry ing concern will now be for the future, function was well planned and not for the past or present, he added. carried out, excellent meals were Exam iners will assess the soundness served by the Holiday Inn staff, and of each policy and practice in each entertainm ent functions arranged by bank and see if they are properly Fargo committees were thoroughly followed. “ It is essential th at we enjoyed by all registrants. William determine whether bank m anage T. Larson, senior vice president at ment has the means, and uses i t ,” he F irst National Bank and T rust continued, “ to identify developing Company, was Fargo general chair w eak n esses and ta k e rem ed ial man. action .” Compliance with consumer # 0 # • • ^ 9 ^ 0 0) €> • ® ® 61 Retiring Pres. Carlyle P. Austinson receives U. S. Savings Bonds awards from Gerry C. Anderson, pres., Bank of Tioga, and NDBA pres, in 1975-76. Robert Caudel, sr. v.p., Bank of North Dakota, Bismarck, and Earl Lundin, a.v.p., Manufacturers Hanover Trust Co., New York. Don Buckman, v.p., 1 st Natl., St. Paul, and his wife, Aggie, with Al Simpson, pres., First Bank of North Dakota-Fargo. Bill Brown, pres., Security State, Hannaford; Jim Laird, corr. bkg. off., Northwestern Natl., Minneapolis, and Harold Lothspeich, pres., 1st Natl., Belfield. Gilbert Ellwein, N. D. commissioner of bkg. & fin., Bismarck, and Jim Dawson, pres., Dawson Hail Ins., Fargo. Lyle Johnson, v.p., 1st Natl., Grafton, and Stan Peterson, v.p., Midland Natl., Minneapolis. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northw estern B an ke r, July 1977 62 Ken Leaf, reg. adm. of natl. banks, Minneapolis; Mark Willes, pres., Federal Reserve Bank of Minneapolis; Bill Larson, sr. v.p., 1st Natl. B&T, Fargo, and genl. chmn. of the convention, and Carlyle P. Austinson, retiring pres, of NDBA. o rien ted law s vigorously. will be p u rsu ed Don Thoren, president of Thoren Consulting Group, In c., Tempe, A riz., was the concluding speaker. He conducted a tw o-part session the final morning on “ How’s Your Change Q uotient?’’ Berniece and Bill Braseth, hon. chmn., Fargo Natl. B&T; Carl Arndt, v.p. Bank of North Dakota, Bismarck; Kurt F. Zerr, pres., Bank of Hazelton, and Bill Rosacker, a.v.p., Marquette Natl., Minneapolis. sports, centering many of his comments on humorous incidents involving athletes with the Minne sota Vikings and Minnesota Twins. Other Business Resolutions adopted at the con vention included continued support Jam es Merrill, executive director for the Garrison Dam project, of Lutheran Social Services, Fargo, support for the A B A position on gave a fast-paced, thoughtful talk interest on demand accounts, contin about the need for business men and ued support to banks for financing of women to have em pathy with the agriculture in the state, urging the people with whom they deal not only U. S. Senate to delete class action in business situations, but in other section 12 of SB 1288, urging the phases of their daily lives. state banking commissioner to rule Jim Klobuchar, well-known col credit union share drafts illegal, and u m n ist w ith “ T he M in n eap olis adopting a new schedule for NDBA S ta r ,’’ Minneapolis, gave a hilarious dues. Winners of the bowling trophies look at the field of professional aw ard ed by th e N o rth w e ste rn Banker were Evelyn Hendrickson with a 661 series for the women’s trophy, and Howard Toso with a 677 series for the m en’s trophy. M rs. Hendrickson lives in Bism arck where her husband, Bob, is chairman of the F irst National Bank and Trust Company. Mr. Toso is vice president of the Ramsey National Bank & Trust Company in Devils Lake. T h elm a T o so tied w ith M r s . Hendrickson with a 661 series but the latter was awarded the trophy by the Fargo bowling committee based on the most pinfall over her average. The executive council was to determine at its June meeting the dates and location of the 1978 convention. It was expected th at Minot would be selected. □ \ Bob Clarín, v.p., 1st State, Golva; Stan Olson, v.p. & comp., 1st Natl., Bowman; Frank Brosseau, corr. bkg. off., 1st Natl., Minneapolis, and Ron Bartholomay, v.p., McIntosh County Bank, Ashley. N orthw estern B an ke r, July 1977 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - Orin Baertsch, sr. v.p., American B&T, Minot; Don Johnson, v.p., American Natl. B&T, St. Paul; Curt Cornelius, pres., Elk Valley State, Larimore, and Art Haesslg, v.p., American Natl. B&T, St. Paul. ^ £ £ £ North Dakota News • 0 • • • Named B anking Head Governor Arthur A. Link has an nounced the appointment of LeRoy Gilbertson of Bismarck to be the new North Dakota Commissioner of Bank ing. He replaces G. W. Ellwein who recently resigned. Mr. Gilbertson formerly was a fi nance specialist with Basin Electric Power Cooperative of Bismarck since 1975. Before that he was with the Bank of North Dakota, Bismarck, for six years, where he served as a loan officer, assistant vice president and vice president in charge of the loan and correspondent departments. While at the bank he was a member of the investment and management commit tee and met with the State Industrial Commission and the Bank of North Dakota advisory board. C itizens S tate o f Finley To C o n stru ct B u ild in g • ^ ^ w ^ Construction has begun on a new building for the Citizens State Bank of Finley, according to L. A. Sayer, Jr., president. The 4,300 square-foot, brick structure will house the bank and its af filiate, the Citizens Insurance Agency. New services to be provided will be a visual drive-up teller’s window and night depository. Other features include a spacious customer lobby, five teller stations, four offices, confer ence room, employee lounge area, bookkeeping section, records vault, customer vault and safe deposit boxes with coupon booth. Fargo-M oorhead AIB C hapter Elects O ffice rs ^ John Koslosky of the First National Bank of Fargo recently was elected president of the Fargo-Moorhead chapter of the American Institute of Banking. ^ Other officers installed at the chap ter’s annual meeting are: Marvin Friedrich, Fargo National Bank, as first vice president; Jay Hendrickson, First Bank of North Dakota, Fargo, 0 as second vice president; Mariya M c Donald, First Bank of North Dakota, Fargo, as treasurer, and Gayln John son, Moorhead State Bank, as secre tary. • Bruce Nathan, Union State Bank, Fargo, is the past president. Fargo Bank P rom otes 6 Dakota National Bank and Trust • Co., Fargo, has announced the follow ing promotions: John Borland, to as https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sistant vice president, commercial loan department; Patrick Triggs, to com mercial loan officer; L. M. Bolstad, senior vice president, from manager of the retail banking center to the bank’s administrative division; Jerry Thompson, assistant cashier, to man ager of the retail banking center; Mrs. Fritz Anderson and Daniel Carey, to instalment banking officers. Mr. Borland formerly was with the bank’s trust department. He taught ac counting and finance at North Dakota State University and worked as an ac countant for Eide, Helmeke, Boelz & Pasch of Fargo before joining the bank. Mr. Triggs joined the bank’s training program in 1973 and has been an instalment loan officer since 1974. Mr. Bolstad joined the bank in 1965 and had been manager of retail bank ing since 1966. Prior to joining the bank he was with banks in LaSalle, Colo., and Rapid City, S.D. Mr. Thompson joined the bank in 1975 after having been manager of the Commercial Credit Office in West Acres. Mrs. Anderson has been with the bank’s retail banking center since 1969. She formerly was office manager for Nides Finance Co., Fargo. Mr. Carey joined the bank’s training pro gram in 1976. C o n stru ctio n Begins On Oakes Bank Construction recently was begun on a new building for the First National Bank of Oakes. John Breitbach, bank manager, said the new brick structure will have 7,300 square feet and will feature a drive-in window and a rotunda light in the middle lobby area. It will be located one-half block east of the present structure. Edlund Construction of Valley City is the general contractor and Grotberg Electric is handling the electrical con struction. The architect is Anderson, Wade, Bartness and Walter of Bis marck. Elected to CSBS Posts Two Denver, Colo., men have been elected to posts with the Conference of State Bank Supervisors (CSBS). Harry Bloom, Colorado’s state bank commissioner, was elected secretarytreasurer of the organization and Max G. Brooks, chairman of the Central Bank of Denver, was appointed vice chairman, policy coodination for the 63 group’s advisory council. CSBS which is headquartered in Washington, D.C., represents bank commissions throughout the United States, Guam, Puerto Rico and the Virgin Islands. It includes about 5,500 state-chartered banks as associate members. PLANNING TO BU ILD OR REM O DEL ( Continued from page 2 6 ) president’s office and the space used by our farm and commercial loan of ficers. The facilities as mentioned are those which were badly needed. We also completely redecorated the bank with new lighting, wall covering and carpeting.” R. R . Brown, president, Hardin County Savings Bank, Eldora, la.: “Our bank remodeling plan included taking over a former office space occu pied by another business, and incor porating that building in with our bank building. It also involved tearing out the old vault and building a new vault, along with several new offices for our bank officers. “If we were to start over on this project, I would have an officer in charge of certain phases of the re modeling; this officer could go over the plans in detail with the architect and report back to the general committee. That way there would be a de tailed study of certain phases of the re modeling, and it would be more com plete. “In selecting the architect I would certainly visit some of the buildings that he has already planned and erected, and view them especially as to the interior decorating as to color and furnishings. The feature that has turned out best so far in our remodel ing has been matching the new addi tion to the old building; this has turned out very well. Our remodeling is not complete, but we are certainly looking forward to having more indi vidual offices for our officers, as our customers seem to enjoy the privacy of these offices. “In the construction of a new vault I would suggest to our banker friends that they study the plans very carefully so that it meets the present needs and the needs of the future, as the vault will be there for a long time, and that is certainly one of the main features of any bank.” ■ N orthw estern Banker, July 1977 If you run a bank, it’s your job to look after your customer’s assets. And almost all banks do a good job of that. But if you’re like a lot of bankers you don’t give your own assets the same kind of attention. This can be troublesome. Because a bank should always know what it’s worth. For itself. For the government. United Bank of Denver wants to help banks who aren’t so good at help ing themselves. We have an Investment Portfolio Analysis and Accounting program that’s specifically designed to help banks keep their portfolios in order. We can present you with a pro gram that provides you with clear, concise management information in easy to read, easy to use reports. Not just pages of data. We can give you accurate ap praisals on your securities. We can offer you daily judgments by our specialists instead of just canned programs that provide pricing by the numbers. We can offer you access to an extensive list of customized reports that help summarize the complexities of investment management for non bankers on your Board of Directors. And we go beyond the Standard and Poor’s index and rate many small issues that can turn out to be very profit able investments for you. If you’d like more information on how United Bank of Denver can be of help to you, give us a call at 303861-8811 and ask for Correspondent Banking or Municipal Bonds. United Bank of Denver. We want to help banks who have trouble helpa a ing themselves. S R United Bankof Denver ▼ ▼ Correspondent Banking Department 1740 Broadway, Denver, Colorado 80217 Phone 303-861-8811 National Association, Member FDIC. Dovouspendsomuchtimekeepingtrackof your customer's assets thatyouignoreyourown? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 65 CBA OFFICERS— Pres.— Leo HIM; Past Pres.—John E. Harker, and Vice Pres.— J. Robert Young. • Colorado Elects Leo Hill; Independents Win V.P. Slot By MALCOLM FREELAND, Publisher • • • ® ® EO H IL L , president and chairman of the First National Bank of Boulder, was advanced to the presidency of the Colorado Bankers Association at its 76th annual con vention in Colorado Springs last month. He succeeds John E . Harker, chairman of the First National Bank, Burlington. J . Robert Young, candidate of the Independent Bankers of Colorado, upset the official nominee of the CBA board of directors to win the vice presidency by a vote of 148 to 112 . He defeated Herbert L. Bacon, president, U .S. Bank of Grand Junction, an affiliate of the First National Bancorporation, Denver. Mr. Young is chairman of the Bank of Basalt; Roaring Fork Bank, Carbondale, and Bank of Snowmass. He has recently completed a three-year term on the CBA board. It was the first contested election of officers in the 76-year history of the association. In his presidential address, Mr. Harker, warned the bankers that https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis they have lots of problems ahead and urged them to learn a lesson from the past. “We don’t need two organiza tions,” he said. “We are only effec tive when we come to the Legislature with one voice.” He cited the recent Pres. Leo Hill and his wife, Betty Lue. passage of Electronic Funds Trans fer legislation which had lost for many years because of a failure of the IBC (small bankers) and the Convenience Bankers Association (the holding company group) to agree on what the bill should include. This year the CBA stepped in as mediator, got everyone together and, the bill passed. Mr. Harker, however, reminded the two banking groups that they still have knotty problems involving branch banking and holding com pany limitations facing them. The holding company banks are pushing for legislation that would al low them to have branches. The IBC group wants to cut down and limit the size of the holding companies. N. Berne Hart, president of United Banks of Colorado and state vice president of the American Bankers Association, told the con vention that vast changes are com ing to banking. He advised the bankers to get together if they want any input in sweeping legislation N orthw estern B anker, July 1977 66 HEAD TABLE at annual banquet finds, from left: Ted Brown, pres., First Nat’l. Bk., Denver, and Eugene Adams, former pres, of ABA and of First Nat’l. Bk., Denver. RIGHT—ABA Pres. W. Liddon McPeters and his wife, Sis; Norrene and John E. Harker, CBA pres. • LEFT—Jane and Jack Koberg, Omaha Nat’l. Bk., and Ann and Mike Tighe, Northern Tr. Co., Chicago. RIGHT— Hermine and Chuck Leffler, First Nat’l. Bk., Lincoln; Harry Ashley, pres., First Nat’l. Bk., Windsor; Joy Smith; Steven Anderson; Dave Ashley, e.v.p., First Nat’l. Bk., Windsor, and wife, Cookie. LEFT— Dale Parker, a.c., United Bk. of Kansas City, and Arlo Beamon, sr. v.p., United Bk. of Pueblo. RIGHT— Bruce Duval, v.p., Rocky Mountain Bk. & Tr., Ft. Collins, and wife, Jane; Mary Jo and Lance Johnson, v.p., Colorado Nat’l. Bk., Denver; T. Rex Rhodes, sr. v .p .,^ Colorado Nat’l. Bk., Denver, and Hugo Menk, Nat’l. Fidelity Life, Denver. N o r t for h w eFRASER stern Banker, July Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 67 ^ • • • • ® • ® ^ that is coming up before Congress. “We, as bankers, know that just playing it safe is really no solution, especially when we are faced with the current mood of Congress and grow ing competition from other institu tions with bank-like services and powers,” Mr. H art said. “Banks are losing their dominant deposit position to other financial in stitutions.” Credit unions in Colorado have grown to 535,000 members with $777 million in assets, while savings and loan figures for the end of 1976 show 46 associations have $5.7 billion in assets. Mr. H art predicted that very shortly banks will be paying interest on checking accounts and that savings accounts customers will be allowed to write checks. Mr. Harker was elected to succeed Mr. Hart as ABA state vice president during the annual A B A meeting. George Gallup, J r ., the Princeton poll-taker, told the bankers that the top issues concerning the public are the economy and energy, but added that on a local level crime usually outpaces both as a matter of concern. He cited his polls to show that the younger generation considers business immoral and dishonest and said the bigger the business the worse image it has. would develop a single system shared by all interested financial institutions, in order to reduce costs. Colorado National Bank Announces Promotions ABA MEETING was conducted by N. Berne Hart, pres., United Bks. of Colo., and ABA state v.p. (left), shown with new CBA Pres. Leo Hill. D., Pueblo, who recently resigned his legislative seat to become head, of the State Department of Labor, told the bankers they have much to do in regard to Colorado’s electronic funds transfer law, recently signed by Gov. Richard D. Lamm. Mr. Ore, who was chief sponsor of the bill, re minded that detailed regulations must still be written by the State Banking Commission between now and Jan. 1 , and urged bankers to participate in the formulation of the regulations. EFT Mr. Ore predicted Colorado will Other speakers at the business ses have competing E F T systems on the sion at the Broadmoor Hotel re heavily populated eastern side of the minded bankers they have many Rocky Mountains, where 85% of the problems to handle in the next year. state’s population lives, but he said Former State Rep. Robert J . Ore, he believes other parts of Colorado W. W. Grant, president of Colo rado National Bank, Denver, has an nounced the following officer promo tions: Lewis Lance Johnson, vice president of commercial loans, to vice president, regional division manager; Duane M. Arnold, invest ment officer, trust department, to trust officer; Gary L. Upson, collec tion manager, BankAmericard de partment, to collection officer, and Edwin L. VonFeldt, credit manager, B ankA m ericard d epartm en t, to credit officer. Mr. Johnson joined the bank in 1965 as a management trainee in the marketing department. He was named assistant vice president in 1972 and vice president in 1974. To Head Arvada Bank Dudley Martens has been named president of Northwest State Bank of Arvada replacing Al Kreps who resigned. Karl W. Sauer has been named a vice president. Mr. Martens, who joined the bank last April, most recently was vice president of the First National Bank of Fort Morgan. He has been in banking and credit for 16 years. Mr. Sauer joined the bank in February. He formerly was comp troller with Republic National Bank. ANNUAL BREAKFAST sponsored by Central Bk. & Tr., Denver, finds from left, Don Hoffman, pres. & c.e.o. of host bank; Fred and W Mary Coulson, v.p., Commerce Bk., Kansas City. RIGHT— Max Paulson, reg. adm. of nat’l. bks.; Jack and Jackie Panter, Amer. Nat’l. Bk., Denver. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B anker, July 1977 Wyoming Officers for 1977-78 are (I. to r.): Orin G. Geesey, pres, and pres., First Wyoming Bank-N.A., Kemmerer; E. J. Haines, 1st v.p. and pres., First National Bank, Laramie; George W. Mcllvaine, 2nd v.p. and pres., Saratoga State Bank; Kenneth C. Naramore, past pres, and pres., Stockmen’s Bank & Trust Co., Gillette; M. C. Mundell, exec, dir., Laramie. # Wyoming Bankers Discuss Competition, Interest, And Fed Membership at Annual Convention By Mike Freeland Business Manager interest on transac C ompetition, tional accounts and Fed mem bership were key issues discussed at the 69th annual convention of the Wyoming Bankers Association last month at Jackson Lake Lodge in Moran. Gerald M. Low rie, execu tive director of the government relations council of the American Bankers A ssociation (A B A ), and Roger Guffey, president, Federal Reserve Bank, Kansas City, stressed the importance of these issues. Twentynine out of 48 people in key positions afffecting banking legislation are new, according to Mr. Lowrie. Mr. Guffey reminded the bankers that “the consumer movement is alive and well in W ashington.” The ABA is taking a positive stance concerning interest bearing transactional accounts and third party payment powers for thrifts and s&ls, according to Mr. Lowrie. The essential requirement in new legislaN o rthw estern Banker, July https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 tion is fairness. With similar powers should come similar tax structures, capital requirements and reserves, including the dropping of Reg. Q or the interest differential, he com mented. Mr. Lowrie said that NOW accounts will probably not be a reality until late 1979 or 1980 and that the banking industry will adopt another name for these accounts. He stressed that the accounts will be for the consumer, not for business, and that they will be an optional service, not mandatory. Shrinking Fed membership is adversely affecting monetary policy, said Roger Guffey. The initial impact of the policy is on the members. Interest on reserve re quirements may be used to make membership more attractive. A “market rate” on all or part of the reserve requirement is expected, he stated. Mr. Lowrie suggested up to 5% interest on reserves. Coal exerts a large influence on the Wyoming economy, according to • Ed Smith, president, Carter Mining Co. , who also spoke a t the 0 convention. Coal can be a positive business development for decades to come, he said adding that coal is not scarce throughout the country and is in a competitive market. “Taxes % should not deter marketing capabili ties,” he said. Carter Mining estimates that a $2 a ton increase in price would result in a one third reduction in demand. A # $3 a ton increase in price would mean a one-half reduction in demand. Even though coal can represent * a good tax source, it is vital that it compete nationally, he commented. # “ If coal cannot compete, we all lose.” The two-day meeting included reports by each of the committee chairmen and new chairmen were ® elected. Over 500 registrants enjoyed the three-day convention which included a golf and fishing tourna ment and tennis games. The group was entertained by the “ Brass-Beat ® for the 70s.” ^ 69 0 Sue and Henry Hewitt, v.p., 1st Wyoming Bank, N.A., Rawlins; Paul and Ann Christensen, sr. v.p., Wyoming National Bank of Casper. Leo Scheuerman, dir., Stockgrowers State Bank, Worland; Jay Bordewick, v.p., U.S. National Bank of Omaha. Roman Skatula, v.p., Bank of Commerce, Sheridan; Dressel, v.p., United Bank of Denver. A. W. Dowdy, exec, v.p., First National Bank & Trust Co. of Wyoming, Cheyenne, Phyllis Dowdy; Juanita and N. P. Van Maren, Jr., pres. Hilltop National Bank, Casper. Bob y*r- Charles R. Leffler, v.p. & mgr., First National Bank, Lincoln; • H a l e Kreycik, pres., Wyoming National Bank of Gillette; Gary Bieck, a.v.p., First National Bank, Lincoln. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hal R. Coulson, v.p., National Fidelity Life, Denver; Helen Naramore, Gillette; Bob Miracle, pres., Wyoming National Bank of Casper. N orthw estern B anker, July 1977 70 J. William Henry, v.p., First National Bank of Omaha, Diane Henry; LeRoy and Myra Noecker, dir., First National Bank of Gillette. Herb McCulla, consultant, Security Bank & Trust Co., Casper, accepts one award for low score of 77 from John Edmiston, sr. v.p., Security National Bank, Denver. Charles E. Smith, Jr., pres., Carter Mining Co., Gillette. Somers White, pres., Som ers White Co., Phoenix, Ariz. N o rthw estern Banker, July https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 Dean Bark, v.p. & t.o., Jackson State Bank; Bill Tumelty, a.v.p., The Central Bank of Denver; Richard W. Martin, 1st v.p., Jackson State Bank. Bill Potocnik, Kirchner, Moore and Co.; A. Edward and Sandy Kendig, pres., First National Bank in Wheatland; Mike Fleming, q sr. v.p., Kirchner, Moore and Co. Roger Guffey, pres., Fed eral Reserve Bank of Kansas City. Gerald M. Lowrie, exec dir., ABA government rela- q tions council, Washington, D.C. Wyoming News Joins Casper Bank 0 • Neal Thielen has joined the First National Bank of Casper as assistant vice president and agricultural repre sentative. Mr. Thielen, a business graduate of F o r t Hays Kansas State Col lege, joined the B. M. Behrends Bank in Juneau, Alas., in 1970. N. THIELEN Later he worked for the Bank of Commerce in Sheri dan, and most recently was vice presi dent of the Security Bank in Colstrip, Mont. R obert Sorensen Celebrates 5 0 th Year in Banking Robert J. Sorensen marked 50 years _ in active service to the American NaW tional Bank of C h e y e n n e last month. A native of Cheyenne, Mr. Sorensen jo in e d the bank’s staff in 1927 after gradu ation from Chey enne High School. M r. S o re n se n was named assis R. J. SORENSEN tant cashier in 1946, cashier in 1951, and was elected a vice president in 1962. He was pro|| moted to executive vice president in 1965 and in 1968 was named presi dent, a position he held until 1974 when he became vice chairman of the board. He also has always taken an 4 ) active part in the community. First W yom ing Bank, Cheyenne, P rom otes 2 ^ William C. Allen, president, First Wyoming Bank, Cheyenne, has an nounced the promotions of Merlynn M. Olson to senior vice president, lending division, and Joseph Kasper, ^ Jr., to vice president and cashier, ad ministration division. Mr. Olson has been with the bank for more than four years serving as vice president of real estate and the H lending division. He also has held banking positions in Colorado. Mr. Kasper joined the bank in 1970 serving as vice president of instalment loans and the administrative division. ||) Previously, he was with the Arvada State Bank in Colorado. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 71 established by the agencies with juris H. A. (Dave) True, Jr., inde diction over employee benefit plans,” pendent oilman, has purchased the he commented. Banks “probably pos sess the ability to absorb, at substantial Hilltop National Bank, Casper. His son, Diemer, a state senator, an additional cost, the burdens of regula nounced the merger of Mr. True’s tory excess currently found in ERISA . “However, many of our customers MIC Corp. and Midland Financial Corp. The stock of the surviving Mid are not so fortunate and find them land will be owned by the Elder True selves hard pressed to meet the added and his family partners. No personnel burdens required to maintain a (pen changes are anticipated. sion) plan. The elder True was elected chair “In our view,” Mr. Moran told the man of the board and his son was ap panel, “several provisions of the Act pointed to the board. Hardy Ratcliff, create the major problems we are cur chairman of Midland, resigned from rently experiencing; first, a litany of the board. prohibited transactions; second, a broad definition of ‘party in interest;’ Named at Casper Bank and third, shared responsibility by the Lynn Duncan has been appointed Department of Labor and the Internal vice president and director of market Revenue Service. ing at the Wyoming National Bank, “Quite frankly, our frustration with Casper. the status quo is such that we feel con Mr. Duncan, a former account ex strained to assist any initiative which ecutive of a Minneapolis-based bank has as its purpose the elimination of marketing agency, replaces Jerry Alany of those elements of the Act which ward. He began his banking career in operate to create the current environ 1955 as a trainee with the Northern ment.” City National Bank in Duluth, Minn. Mr. Moran is a vice president of In 1968 he was named vice president. Manufacturers Hanover Trust Co., In 1970 he left to become vice presi New York. dent, marketing director and business development officer of the Bankers Trust Co., Des Moines, la. BMA Releases Two Buys H illto p Bank C om m unity Service Films S upport Single Agency For Pension Regulation The Employee Retirement Income Security Act (ERISA ) has enmeshed bank pension trustees and investment managers in a tangled web of regula tory delays and administrative confu sion, Charles A. Moran, a spokesman for the American Bankers Association (ABA), said recently. Mr. Moran told a joint hearing of the Senate Select Committee on Small Business and the Senate Subcommit tee on Private Pension Plans of the Committee on Finance that bankers support efforts by the legislators to re move dual jurisdiction — by the De partment of Labor and the Internal Revenue Service — over ERISA . “The everyday business of bank trus tees and investment managers and the interests of our trust beneficiaries is significantly affected in an adverse manner by some of the regulatory pro visions of E R IS A ,” said Mr. Moran, who is a member of the employees trusts committee of A BA ’s trust divi sion. “The Act has enmeshed us all in a web of conflicting, duplicative and un necessary administrative procedures Two new full-color/sound film strips, geared to enhance a bank’s com munity relations and public service programs, now are available from the Bank Marketing Association, Chicago. More than a listing of bank services, “Your Bank — a Service for All Sea sons” concentrates on helping the con sumer perceive how such services as checking, savings, trust and loans can aid them easily and effectively. This filmstrip is not a hard sell approach to these services, but simply and enter tainingly examines bank services and how they benefit the customer. The second filmstrip, “Financial Planning for the Family — the Pinch,” focuses on the importance of financial planning. The program dram atizes how three families found them selves in a financial pinch and how they resolved their problems through advice in financial planning from their community banks. “The Pinch” also touches on such important topics as budgeting, family debt, building sav ings, consumer credit, inflation and more. BMA members can purchase both filmstrips for $140. Purchased sepa rately, the filmstrips are $80 each. N orth w estern Banker, Ju ly 1977 South Dakota News CHARLES T. UNDLIN President J. I. MILTON SCHWARTZ Rapid City Secretary Huron Named at Belle Fourche G. Willard Pummel has been named vice president and manager of the Belle Fourche Of fice of the First National Bank of the Black Hills, Rapid City. He r e p la c e s Arthur W. Jones who re tired a f t e r 12 years as vice pres ident and man a g e r at B e l l e G. W. PUMMEL Fourche. Mr. Pummel has been with the First National Bank for 27 years. He joined the bank’s Spearfish Office in 1950. In 1960 he transferred to the Rapid City main office as assistant vice president and assistant manager of the instalment loan department. Most recently he was vice president and manager of the Deadwood Office. president and manager of the instal ment loan department. Mr. Kurle comes to Mobridge from the Redfield Branch of the bank, be ginning there in 1970 as a manage ment trainee. He was promoted to in stalment loan officer and manager of the instalment loan department and in March of this year was elected agri cultural loan officer. N ational Bank o f S.D. Announces S taff Changes The National Bank of South Dako ta, Sioux Falls, has announced the fol lowing promotions and elections: Donald F. Bertsch, senior vice presi dent and cashier; James D. Iverson, vice president and senior credit officer; Joins M obridge Bank William M. Kurle has joined the Mobridge Branch of the First Nation al Bank, Aberdeen, as assistant vice D. F. BERTSCH J. D. IVERSON DON’T FORGET OS AT U.S. CHECKDOOK GO. for ALL your Bank Supplies • • • • We have Plenty of “ TIME” for you! AND IT WON T BE LONG UNTIL OUR SALESMAN WILL BE AROUND' Bank P rinting Checks C om puter Supplies O ffice Needs The “WORKS” you need to RUN your bank United States Ched Book Company 1201 SOUTH 16TH STREET - OMAHA, NEBRASKA 68108 ln Nebraska Call 402-345-3162 Out of State Call Wats Line 1-800-228-9246 N orthw estern B anker, Ju ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 Norma McWilliams, real estate loan officer, main office, Sioux Falls, and Jo Rombough, auditor, main office, Rapid City. Mr. Bertsch began his banking ca reer at the First Potter County Bank, Gettysburg. He joined National Bank in 1968 as auditor and was elected a vice president in 1973. Mr. Iverson joined the bank in 1966 and was elected a vice president in 1970. Ms. McWilliams, with the bank since 1974, joined the officer training program in 1976. Ms. Rombough joined the Rapid City Office in 1971 in the trust department. She trans ferred to operations in 1976. Named at Clear Lake The Deuel County National Bank, Clear Lake, has announced the ap pointment of Loren P. Severson as loan officer. Mr. Severson has operated a dairy farming unit near Brandt for many years. T oronto B anker Honored A steak fry was held recently by the staff and directors of the Bank of Toronto to honor C. G. (Marty) Martinson for 51 years in the banking business. He was presented with a 50year pin from the South Dakota Bank ers Association and he and his wife, Alice, each received a gift from the employes. Mr. Martinson is serving as chair man of the Bank of Toronto. His first six years in banking were spent at Madison, Minn., and the balance in Toronto. First o f th e Black H ills Announces S taff Changes Charles T. Undlin, president of the First National Bank of the Black Hills, Rapid City, has announced the follow ing staff changes: Donald Ondriezek, vice president and manager of the Deadwood Office; Marion A. Matt, as sistant manager of the Belle Fourche Office; I^ee Groskopf, vice president and manager of the Villa Ranchaero Office; Kirk Gerald Malcolm, assistant vice president and assistant manager of the Sturgis Office; Gerald Keil, as sistant vice president and instalment loan manager of the Belle Fourche Of fice; Edward C. Toms, loan officer, Kenneth Bauman, insurance manager, and Kenneth McLin, loan officer and assistant manager, all of the Lead O f fice. 73 Montana News P. A. YATES President Havre J. T. CADBY Secretary Helena To Head Havre Bank Kenneth W. Mahle has been elected president of Citizens Bank of Montana, Havre, according to Charles W. Rubie, chairman and chief execu tive of Bancorpo- ■ ration of Mon tana. He succeeds Phil A. Yates who was named president of Banc o r p o r a tio n of K. W. MAHLE Montana, Great Falls. Mr. Mahle began his banking career in 1957 in Anaconda, and later moved to Austin, Minn. In 1963 he joined the instalment loan department of Citizens Bank of Montana. In 1966 he transferred to Miners Bank of Mon tana, N.A., Butte, as vice president and director and in 1973 became pres ident. In addition, Mr. Mahle is a di rector of Trust Corporation of Mon tana, Great Falls. He is a graduate of the University of Montana. joining Miners Bank of Montana as vice president in 1976. He attended Franklin University, Columbus, Ohio. Flood Insurance W orkshop Scheduled For Lenders A one-day workshop for lenders with legal and professional responsi bilities concerning the National Flood Insurance Program has been scheduled for August 8 by the American Bank ers Association’s (ABA) insurance and protection division. The Flood Insurance Workshop for lenders will be conducted by represen tatives of the Federal Insurance Ad ministration, The National Flood In surers Association and the ABA at the New Orleans Marriott. The program will cover all aspects of flood insurance: legislative back ground, the government’s role, cover age, renewal procedures, policy con siderations and responsibilities of lend ers. All registrants will receive a “Flood Insurance Information Kit” which will serve as a reference guide for the discussion. The National Flood Insurance Pro gram is a cooperative effort between the federal government and the insur ance industry. The legislative require ments of conditional financing for structures in special flood hazard areas make lenders an interlocking compo nent of the program. For further information about the Flood Insurance Workshop for Lend ers, contact Nancy Krakover, Insur ance and Protection Division, Ameri can Bankers Association, 1120 Con necticut Ave., N.W., Washington, D C. 20036, (202) 467-4049. First o f A naconda-B utte Announces P rom otions W. R. Tait, president of the First National Bank, Anaconda-Butte, has announced the promotions of the fol lowing three staff members: Butte divi sion, Darlene Stanich to operations of ficer; Anaconda division, Catherine Joy and Dodge Leary to instalment loan officers. Ms. Stanich joined the Butte divi sion in 1969 as a messenger and in 1974 was promoted to bookkeeping supervisor. Ms. Joy has been with the bank since 1962 as instalment loan secretary. Mr. Leary joined the bank in 1974 as a trainee and has been in instalment loans since January, 1975. Billings Bank Celebrates Grand Opening • M iners Bank, Butte, Elects P resident Miners Bank of Montana, N.A., Butte, has announced the election ol James E. McDevitt as president. He succeeds Ken neth W. Mahle who is now presi dent of Citizens Bank of Montana, Havre. Mr. McDevitt has been in banking since 1962 j. e . M c d e v i t t when he joined the First National Bank of Las Vegas. In 1970 he became assistant vice presi dent and branch manager. He moved in 1973 to the Bank of Nevada, Las Vegas, as vice president of real estate administration where he served until https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FIRST NW Natl. Bank, Billings, recently celebrated the grand opening of its new fa cility. Kicking off the week-long celebration are (I to r): Henry Rudledge, NW Bancorporation board chm n.; Harold Slemmer, staff m em ber w ith longest service; Georgia Meierding, newest staff member; B ill Fox, B illings mayor; AI Winegardner, 1st NW pres., and Congressman Ren Marlenee. The new 14-story First NW Bank Center was com pleted in January, 1977. N o rth w esïern B anker, J u ly 1977 Meet Clete Uhing He knows how bank cards should stack up. ̧»#4 W S4 m am m àSL1*5b i 8q Clete Uhing, our Bank Card Market ing Representative, is new to U.S. National, but he brings with him experience you can rely on for the effective use of bank cards. Clete s job is to provide your bank with fast, efficient bank card service, whether yours is Master Charge, the new international Bank — Visa, or both. Americard https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Watch for him. He may be able to help stack bank card business in your favor. US National bank of Omaha 75 Nebraska News president and cashier. He also has worked at First National Bank at Fairbury and Albion National Bank. N o rfo lk B anker Honored H. E. LARMON President McCook R. E. HARRIS Exec. Mgr. Lincoln Top Changes Announced At Grand Island Bank Phillip J. Zeller, Jr., president and ^ :h ief executive officer of the Overland National Bank of Grand Island, has resigned. He and J. D. Schiermeyer, Jim Norris and Associates have pur chased controlling interest in the First ^National Bank of Junction City, Kans. Hugh Hansen, president of the North Platte State Bank, was named to succeed Mr. Zeller. He joined the North Platte bank as president in 1974 0 ifte r nearly 15 years with the First National Bank & Trust Company of Fremont, another institution affiliated with NBC Co., Lincoln. Mr. Schiermeyer, most recently •chairman, president and chief execu tive officer of the National Bank of Commerce, Lincoln, is chairman and chief executive officer of Bradford In vestment Company of Lincoln. Mr. •Norris has served as a vice president of National Bank of Commerce and was assistant to Mr. Schiermeyer. He is now president of Bradford Invest ment Company. Mr. Schiermeyer is Currently chairman of the marketing division of the American Bankers Association. Mr. Zeller has been president of the X)verland National for the past two * e a r s . Prior to that he was senior vice president and head of the national and metropolitan divisions of Security Na tional Bank, Kansas City, Kans. a Sellers were John D. Montgomery, k . J. Fegan and Fred C. Bramlage, Junction City business and civic lead ers who will continue as directors of the bank. Land Bank of Omaha, a livestock and loan inspector for the Production Credit Administration and for the Re settlement Administration before join ing the Aurora bank in 1937. A surprise open house in his honor recently was held at the bank. N orth Platte State Bank Elects Coleman P resident Richard Coleman, vice president, recently was elected president of the North Platte State Bank. He suc ceeds Hugh Han sen w h o w a s named president of Overland Nat i o n a 1 Bank, Grand Island. Mr. Coleman p r e v i ously was a senior r . COLEMAN b a n k examiner with the Nebraska Department of Banking. Marlene Ahrenholtz, cashier and di rector of public relations of the Bank of Norfolk, recently was honored with the Time Woman of the Year award. The award is given by the Chamber of Commerce for outstanding achieve ments in the community. Mrs. Ahrenholtz served as president of the women’s division of the Cham ber the past year, led 10 committees and increased membership from 107 to 201. She also served as a director of the Norfolk Chamber of Commerce. She is a past president of Credit Wom en International, serves as a member of the Home Health Care Agency’s ad visory board through which she initiated an “Adopt a Grandmother” program, and is a member of the Na tional Association of Bank Women. Mrs. Ahrenholtz won the NABW na tional scholarship in 1973-1974. Prom oted at Lexington Margene Pierce recently was elected operations officer of the Lexington State Bank and Trust Company, ac cording to George V. Keller, chairman. Miss Pierce has been with the bank since May of 1970 as a bookkeeper and teller. Named Cashier at York Allen R. Koop Dale Adams is the new cashier of the First National Bank in York. Mr. Adams, 33, moved to York from the LaPorte City State Bank in LaPorte City, la., where he was vice Funeral services were held for Allen R. Koop, 65. For 30 years Mr. Koop had been Home State Bank, Louisville, cently as cashier. recently the past with the most re Wakefield National Holds Open House A u r o r a Banker R etires Arild Eriksen, vice president of the First National Bank in Aurora, recent ly retired after 40 years in banking. ^ Mr. Eriksen attended the University of Nebraska and began his banking ca reer at the Marquette Farmers State Bank. He also worked as a loan in spector for the Regional Agricultural ^ r e d it Corporation of Sioux City and T)maha, an appraiser for the Federal https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PICTURED is the new building of the W akefield National Bank. The bank recently held a week-long open house fo r the public to see the new facility. The building has nearly 4,000 square feet on the ground flo o r and a fu ll basement. Construction was begun in July of 1976 and the bank moved in on February 22, 1977, according to Weldon C. Schwarten, cashier. Roy Yaley is the bank’s president. N orth w estern B anker, Ju ly 1977 76 ONALD J . Murphy, president of the United States National Bank of Omaha, has announced the appoint, „ m ment of Warren i L. Stewart to vice D H Omaha Banco art will coordi nate and direct ^ personnel adminw. l . s t e w a r t istration tor U. S. National, Center Bank, and Northwestern National Bank. The regional personnel offices will be housed at U. S. National. Mr. Stewart, 33, is the former direc tor of employee relations of Pittsburg Plate Glass Industries, Inc., of Koko mo, Ind., where he has been in various personnel management positions since 1970. Mr. Murphy also announced the promotions of Ruth M. O’Keefe and Ronald E. Schneider to vice presidents, R. M. O ’KEEFE R. E. SCHNEIDER when it opened in 1975 and manager in 1976. Mr. Schneider joined the bank in 1974 as a commercial loan officer. He previously had been with the National Bank of Commerce in Lincoln for three years. He has undergraduate and graduate degrees from the University of Nebraska. Mr. Smith joined the bank last Sep tember as a special loan administrator after 34 years of experience in banking in the Omaha area. He also has been with the State Savings Bank in Council Bluffs, la., and The Omaha National Bank, leaving as senior vice president in charge of loans. Mr. Sieling joined the bank in 1976 as an account admin istrator. He previously was an instruc tor at the University of Nebraska at Lincoln and Creighton University in Omaha. * N orth w estern Banker, Ju ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 * John D. Woods, chairman and pres ident of The Omaha National Bank, and John T . Geary, president and chief executive officer of the First National Bank of Oak Lawn, 111., have been elected to the board of directors of United of Omaha, stock life insurance affiliate of Mutual of Omaha. Both men also were appointed to the com pany’s investment committee. Mr. Woods came to the Omaha bank in 1975. Mr. Geary has headed the Oak Lawn bank for the past six years. * Victor D. Smith to credit officer and Richard H. Sieling to assistant trust officer. Miss O’Keefe is managing officer of the bank’s Regency Office. After join ing the bank in 1936, she worked in various departments and served as sec retary to the chief executive officer from 1949-74. She was named as sistant manager of the Regency facility * * * The Central National Insurance Group of Omaha has announced three executive promotions. Assistant vice presidents James E. Rosenthal, CPA, and L. Tim Wagner, CPCU, have been elected vice presidents. Darrell W. Latch, CPCU, administrative assistant underwriting, has been elected assis tant vice president. Mr. Rosenthal has been with the® firm since 1970 when he joined from Peat, Marwick and Mitchell, inter national certified public accounting firm. He became a CPA in 1967 after^ receiving BA and BS degrees from ^ Creighton University, Omaha, in 1964. Mr. Wagner joined the firm in 1972 and was named department manager and assistant vice president in 1 9 7 5 ^ He had been with the Nebraska State Insurance Department. He received his BA degree from Nebraska Wesleyan University in 1963 and his CPCU designation in 1969. ® Mr. Latch has nearly 26 years of ex- J. E. ROSENTHAL L. T. WAGNER perience in the insurance field with® Kemper Companies, State Farm and AFSC Agency, general agency of As sociates Corporation of South Bend, Ind. H s H * * The Omaha National Corporation has announced the promotion of George M. Brady to second vice presi dent. Mr. Brady left a position as se-^ nior accountant with Touche Ross ana Co. to join the bank as an assistant auditor in November of 1974. In July of 1975 he was assigned to the con troller’s department as an assistan® control officer. In February of 1976 he was appointed financial officer of The Omaha National Corporation, his present position. * * * John D. Woods, president and chief executive officer of The Omaha Na tional Bank, has announced the pro motion of Robert F. Green to vicr president of Realbanc, Inc. 9 Mr. Green came to the bank in June of 1973. He began his career with Realbanc as a financial analyst and in December of 1973 was named m ort^ gage loan officer. In March of 1976 h r was oppointed second vice president. In his present capacity he deals mostly with commercial mortgage loans, their negotiations with borrowers and pre^| entation to investors. 77 Electronic Funds Transfer System (EFTS) with Point of Sale (POS) teleprocessing Direct file inquiry through a cathode ray tube Integrated centrai information file Magnetically coded card Consolidated statement of accounts for individual customers 0 s y s te m d o e s it a ll. Q ) It's a practical system ready for you to Implement. It identifies total customer relationship. * « M i •* M « « n * » * * « « • < * * « y * * * * * ft• t It's a new marketing tool. © • first national bank of omaha you're in first national territory https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis member F.D.I.C. * * * * » * For a free brochure on the details, applications and advantages of putting Qsysfem to work in your bank, just send this coupon to: Correspondent Bank Department First National Bank one first national center Omaha, Nebraska 68103 * * Or in Nebraska call us Toll Free at 800-642-9907, From States adjacent to Nebraska call us Toll Free a t 800-228-9533, name ________________________________________ p osition______________________________________ bank n a m e ___________________________________ bank address _________________________________ c ity ----------------------------------------- state__________ zip 78 Lincoln News has been elected a D ONseniorAnderson vice president of First Mid A m e r i c a , Inc., a c c o r d i n g to Charles J. Burmeister, president. Mr. Anderson’s responsibilities in clude the syndi cate department, over-the-counter trading and cor porate finance. D. ANDERSON * * * First Greatwest Corporation, Lin coln, has elected two new directors. They are Richard A. Williams, presi dent of Dornberger & Co., Sioux Falls, S.D., and Milton E. Whitehead, presi dent, Whitehead Oil Company of Lin coln. * * ❖ As a result of a plan discussed for a number of months by officers and directors of NBC Co., some new direc tors from Nebraska communities served by NBC Co. affiliate banks will be elected to give the board wider representation of all communities served. This will afford an opportuni ty for more input from a broader base of affiliate banks and the customers they serve. Now available . . . First Mid America’s '1976 NEBRASKA BANKS COMPARATIVE STATISTICS" For your copy of the 1976 Nebraska comparative bank statistical analy sis, call or write your First Mid America broker or the First Mid America Research Department. First Mid America CTU Building Lincoln, Nebraska 68508 First Mid America M e m b e r N e w York S to c k E x c h a n g e and o th e r p r i n c i p a l S to c k a n d C o m m o d it y E x c hanges Stocks • C om m odities • Bonds • M unicipal Bonds • G overnm ent Agencies M utual Funds • O ptions • Investm ent Banking • Pension C onsultants L in c o ln • O m aha • C o lu m b u s • G rand Island • H astings A tla n tic • C edar Rapids • Des M oine s • F ort Dodge S io u x C ity • Kansas C ity • C h ica g o N orth w estern Banker, Ju ly 1977 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This scheduled move, part of a longrange plan followed by the holding company for some time, will permit directors of National Bank of Com merce to concentrate on their principal interest of guiding and developing the bank of Lincoln. Since the incep tion of NBC Co., 17 of the bank’s di rectors had been serving in a dual di rector capacity for NBC Co. during its formative and initial expansion years. The development of several service entities has provided a new source of management directors so that with NBC Co. officials who are also directors, the holding company board may now move into its next phase of wider representation of various Nebraska communities. * 0 £ # Sally Schneider of First National Bank has been elected president of the Lincoln Chapter of the American In stitute of Banking (A IB). Other of ficers elected are: first vice president, Michael McGregor, First National Bank; second vice president, Charles Heinke, Havelock Bank; secretary, Ava Beeman, First National; treasurer, Bob Johnson, Westgate Bank, and ad visor, Dennis Stelzer, National Bank of Commerce. * * * First National Lincoln has announced the election of Donald R. Larson as vice president in charge of business development for the bank's commercial banking division. A native of Decatur and a 1953 graduate of the University of Nebras ka, Mr. Larson has more than 20 years of experience in the banking industry. He and his family have been living in Lincoln since 1967. * * hî # • ® Named at Crete Fred W. Kerst, chairman of The City National Bank of Crete, has announced the election of Dr. John H. Cerny to the bank’s board. Dr. Cerny is a veterinarian and has been with the Crete Veterinary Clinic for 1 l years. * * * £ ® Joins Dawson Bank Rich Oshel has joined The Dawson Bank as vice president in the agricul tural loan and insurance departments. He formerly was a loan officer for the Beatrice Production Credit Association for the past three years. Mr. Oshel is a graduate of Northwest Missouri State University, Maryville, with an agriculture-business degree. # • • • Specialists in structuring solutions to correspondent problems... BILL EDGECOMB FRANK MORSE LYLE STONEMAN CHUCK LEFFLER GARY BIECK / CRAIG WANAMAKER STEVE ANDERSON ll DAVE SCHWEITZ FIRST N ATIO N AL LINCOLN Box 81008 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lincoln, Nebr. 68501 Phone (402) 471-1231 N orth w estern Janker, J u ly 1977 80 Nebraska News Named at Tekam ah • Kenneth Larsen, agriculturist and rancher, has been named to the board of the Citizen’s State Bank, Tekamah. He is a director of the Nebraska Polled Hereford Association, Burt County ® Fair, Burt County Feeders Association and is treasurer of the Decatur Town ship Board. Farm C redit A d m in is tra tio n Names Deputy G overnor PICTURED above is the Bank of Doniphan after com pletion of an extensive rem odeling and building project. The new fa cilitie s include a new vault, drive-in window, night de pository, deposit boxes, lobby, additional private loan offices, basem ent com m u nity room, board of directors room, paved parking lot and tim e and tem perature sign. The Doniphan Insurance Agency office also is in the building. The bank recently held a public open house. George Wanitschke is the bank’s president. Doniphan Bank Holds Open House The Bank of Doniphan recently held a grand opening of its newly-enlarged and remodeled facility, according to George Wanitschke, president. New features include a drive-in win dow, night depository, two vaults, sky lights, time and temperature sign, pri vate offices for loan officers, private coupon booths for customers and addi tional safety deposit boxes. Upstairs are four teller stations, one with a computer tie-in with First Na tional Lincoln; offices, and a coffee and conference room. Downstairs is the board room, storage space and a community room with a fully-equipped kitchen. The bank now has a total of about 6,400 square feet on the ground floor, which is an addition of about 5,000 square feet. There is a full basement and about 3,000 square feet of storage. NBA C om m ittees Agriculture — Ray Weilage, Crete. Trusts and estates — Robert E. Johnson, Jr., vice president, First Na tional Bank, Omaha. Legislation — Jack Selzer, presi dent, Scottsbluff National Bank. Pension — Levetta Hosier, presi dent, Fullerton National Bank. Bank management and education fund — W. W. Cook, Jr., president, Beatrice National Bank. Instalment credit — William Jensen, vice president, First National Bank, Kearney. Marketing and education — Roger Bailey, vice president, First National Bank, Grand Island. The Nebraska Bankers Association, Inc., (NBA), has announced its com mittees for 1977-78. The special task force on planning includes: Richard Adkins, president, Osmond State Bank; Dr. L. Wayne Dobson, Abbott professor of banking, University of Nebraska, Lincoln; H. L. Gerhart, Jr., president, First Na tional Bank, Newman Grove; Paul Hefti, chairman and president, Guard ian State Bank, Alliance; Bruce Lauritzen, vice president, First National Bank, Omaha; James Oliver, vice chairman, Commercial National Bank, Grand Island; Donald J. Murphy, president, U.S. National Bank, Omaha, and John Young, president, First Na tional Bank, Fremont. Committee chairmen are: Correspondent banking — Wilbur Baack, senior vice president, National Bank of Commerce, Lincoln. International banking — Joseph R. Crimmins, vice president, First Na tional Bank and Trust Company, Lin coln. N orth w estern B anker, Ju ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 George E. S choettger Funeral services were held recent ly for George E. Schoettger, 80, re tired Arlington banker. Mr. Schoettger was a graduate of Fremont Normal College and attended the University of Nebraska. He was with the Arlington bank from 1920-69. ^ Sheldon W. Stahl, vice president and senior economist at the Federal Reserve Bank of Kansas City, has been appointed deputy governor, office £ of finance and research, for the Farm Credit Administration in Washington, D.C., effective August 1. Dr. Stahl joined the Reserve Bank's research division in 1962 as a busi- 0 ness economist. He was named to the bank’s official staff in 1967 as research officer and promoted to vice president and senior economist in 1973. For about two years he was research offi- 0 cer and economist at the Federal R e serve Bank of Philadelphia. C o m p tro lle r A p pointm ents Acting Comptroller Robert Bloom recently announced that his office has reorganized its regional offices so that each will have two deputy regional ad ministrators, one for examinations and one for planning and operations. With the new appointments, assign ments of the new and existing deputy regional administrators in the area covered by the N orthwestern B ank er are: region seven, Chicago, exami nations — Dean S. Marriott, planning and operations — Bonnie E. Yates; region nine, Minneapolis, examina tions — William J. Suman, planning and operations — L. Carl Starich; region 10, Kansas City, examinations — John W. Rogers, planning and op erations — Gary M. Brickman; region 12, Denver, examinations — Edwin H. Hess, planning and operations — Max A. Paulson; region 13, Port land, examinations — Donald W. Kerbel, planning and operations — Har old H. Blum. The new appointees follow with their former positions: Mr. Marriott, national bank examiner, special proj ects, Washington, D.C.; Mr. Brickman, national bank examiner, fourth nation al bank region in Cleveland; Mr. Hess, director of planning, Office of the Dep uty Comptroller for Administration, Washington, D.C., and Mr. Blum, re gional director of corporate affairs, re gion 12 in Denver. 81 A sk any banker in Nebraska, “W ho has the finest data processing systems?” He’ll say, “NBC.” Our computer experts can solve your toughest record-keeping problems. NBC’s new electronic data processing center is designed for banks and the unique needs of the banking industry. It’s more than a machine. I t’s a complete bank management system, and it’s run by dedicated people, committed to making your job simpler. We ’re ready to answer all your questions about the new age of computer banking. NBC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Complete Range of Data Processing Applications Accounting Applications Demand Deposit Bond C ertificate o f Deposit Com m ercial Loan E xpense G eneral L ed ger P erso n al Loan Payroll S aving s Safe Deposit Box M ortgage Loan Item Processing System P roof and T ransit ACH Capabilities On-Line Systems Tbller U nits Cathode R ay Tubes Automated Tfellers Commercial Services P ayroll A ccounting A ccounts Receivable National Bank of Commerce The People Place NBC C enter 13th & O S ts., L in coln, N ebraska WATS Line: 8 0 0 -7 4 2 -7 3 1 7 M ember FDIC N orth w estern Banker, Ju ly 1977 82 I’m John Murano your roving correspondent from Bankers Trust “ W h e re v e r I tra v e l, I fin d b a n k e rs w ith u n iq u e c o r re s p o n d e n t n e e d s . It's m y re s p o n s ib ility to c re a te a n d s h a p e a p a c k ag e o f c o rr e s p o n d e n t s e rv ic e s to m e e t th o s e n e e d s ." J o h n M u ra n o is y o u r c o rr e s p o n d e n t b a n k e r fro m B a n k e rs T ru s t. J o h n b rin g s a h ig h le ve l o f in s ig h t an d e x p e rie n c e to e a ch c o r r e s p o n d e n t re la tio n s h ip . O n c e he d e te r m in e s y o u r n e e d s , he ca n c h a n n e l the fu ll re s o u rc e s of B a n k e rs T ru s t to fill th o s e n e e d s , in c lu d in g tru s t s e rv ic e s , lo a n o v e rlin e s a nd p a r tic i p a tio n s , w ire tra n s fe rs a nd c o m p u te r s e rv ic e s . T h e re la tio n s h ip d o e s n ’t s to p th e re . “ I l l be t h e r e need m e .” when you J o h n w ill m a in ta in re g u la r c o m m u n ic a tio n s w ith yo u , a n d be re a d y to a s s is t yo u as y o u r needs change. C o n ta c t B a n k e rs T ru s t a nd ask fo r J o h n M u ra n o o r o n e o f o u r o th e r ro v in g c o rre s p o n d e n ts . B a n k e rs T ru s t w a n ts to c o rr e s p o n d w ith you . . . b a n k to b a n k . . . p e rs o n to p e rs o n . U se o u r to ll-fr e e W A T S me: 800-362-1688. Bankers Trust Des Moines. Iowa 50304 Member: FDIC/Federa! Reserve System N orth w estern B anker, Ju ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 83 Iowa News • C. R. BRENTON 0 NEIL MILNER President Exec. V.P. Des Moines George E. Maher has been elected president and chief executive officer ® o f the Houghton State Bank, Red Oak. He has been with the bank for ^ seven years and has served as ex ecutive vice presi dent and director. Mr. Maher suc^ ceed s William P. Norris who has G. E. MAHER been named chair man and chief executive officer of the Morningside State Bank in Sioux City. # M r. Norris also will continue as chair man of Houghton State Bank. Indianoia Banker R etires A reception honoring Leland Threlkeld was held at the Peoples Trust and Savings Bank, Indianoia, last month. Mr. Threlkeld, assistant cashier, re cently retired. New G roup O fficers Three groups in the Iowa Bankers Association elected officers during the •recent series of meetings in May. The first named person is chairman, and the second named person is secretary. They will assume the new offices fol lowing the Iowa Bankers Convention •in September. Group Three: Glen O. Emmons, executive vice president, Northwood State Bank, and O. J. Tomson, presi dent, Citizens National Bank, Charles •City. Group Five: Ronald F. Sealock, executive vice president, Council Bluffs Savings Bank, and Richard Randall, president, Dunlap Savings Bank. (Mr. •>ealock moved up to chairman in October, 1976, when H. Rand Peter sen, president, Shelby County State Bank, Harlan, was elected IBA trea surer). • Group Seven: L. C. “Bud” Pike, president, Farmers Savings Bank, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Named at West Union Oes Moines To Head Red Oak Bank • cultural Services managing farms in Mankato, Minn., and the surrounding area. Grundy Center, and Ron Fenton, president, Security Savings Bank, Marshalltown. Plan New Bank in A rth u r The Ida County State Bank, Ida Grove, is planning to construct a new building for its Arthur Office. The old building will be torn down. Joins W aterloo Bank R. Scott Fetner, president of The National Bank of Waterloo, has an nounced the addi tion of G. Thomas Voiding as farm manager. M r. V o id in g received a BS de gree in farm oper ations and a MS degree in agricul tu ra l economics from Iowa State University, Ames. He previously was with Doane Agri Adrian Rademaker, president of the Farmers Savings Bank, West Union, recently announced the appointment of Dr. Wayne Bicknese, DVM, to the bank’s board succeeding Finus Putz, director since the bank was founded 10 years ago. Mr. Putz, who was named an honorary director, will continue to serve the bank in an advisory capacity. State Bank of Toledo To Build Expanded Drive-in State Bank of Toledo has an nounced construction of an expanded drive-in facility to be located west of the post office. The present building on the corner of Broadway and High Street will remain open. The new building of 2,700 square feet of space will include two drive-in lanes with space for a third, walk-in teller facilities, office space, vault space for safety deposit boxes, and a night depository. Green M ountain Bank Names D ire cto r Allen E. Brennecke has been elected to the board of the Producer Savings Bank, Green Mountain. He is a part ner of Mote, Wilson and Welp law firm. Iowa Investment Bankers Field Day Members of the Iowa Investm ent Bankers Assn, held th e ir annual field day in Des Moines recently. Pictured here are 11BA officers and field day chairm en. Front row, from left, are IIBA Pres., John McClain, Dean W itte r & Co.; Jon Gaskell, R. G. Dickinson & Co.; Ralph Marasco, Dean W itte r & Co., and Jay Orr, Becker & Cownie. Back row, from left, are: Secy-Treas. Bill Goodwin, R. G. Dickinson & Co.; Barney Greenhill, Dean W itter & Co., 1st V.P. Gene Strandberg, Carleton D. Beh Co., and 2nd V.P. Tom Wormley, Shaw M cD erm ott. All are from Des Moines, N orth w estern Banker, Ju ly J977 84 Io w a N e w s Hardin County Savings, Eldora, Remodels Marshalltown, first vice president; Glen Spence, Commercial State Bank of Marshalltown, second vice presi dent, and Roger Cramer, Producers Savings Bank of Green Mountain, # secretary-treasurer. Lawrence A. W irtje s Funeral services were held recently # for Lawrence A. Wirtjes, retired Rake banker. He was 66 . Mr. Wirtjes joined the Rake State Savings Bank in 1954 as executive vice president. He held that position 0 until he and the late O. H. Toft sold their interests to Gordon Swenson, who became executive vice president and trust officer in 1973. At that time, Mr. Wirtjes retired. ^ PICTURED is the newly-remodeled Hardin County Savings Bank, Eldora. The building was extended north to an alley w ith the addition including a new vault, conference room, private offices, consum er loan de pa rtm e nt and insurance agency. The fo rm e r vau lt was torn out to make room fo r fo u r new offices and the farm m anagem ent de pa rt ment. R. R. Brown is the bank’s president. R etires at Steam boat Rock Doris K. Ruppelt, vice president of the Second National Bank Office in Steamboat Rock, recently retired after 31 years of service. Originally employed by the Farm ers Savings Bank of Steamboat Rock in 1946, she became cashier and head officer in 1953. In 1965 as vice presi dent, she helped instigate the conver sion and move of the bank charter to Eldora with an office in Steamboat Rock. She also sold the Ruppelt Insur ance Agency which she operated from 1953 to the Brown-Hurst Insurance Agency in Eldora. Iowa Valley AIB C hapter Elects 1977-78 O fficers Gary McKibben of the Poweshiek County National Bank, Grinnell, re cently was installed as the new presi dent of the Iowa Valley Chapter of the American Institute of Banking. Other officers elected include Barb Atha, Security Savings Bank of On target,on time, on the money. T h a t’s w h a t you get w h e n you call on the K irk G ross C om pany to handle yo u r b u ild in g or re m o d e lin g protect. O ur sp e c ia lis ts handle eve ryth in g fro m b u ild in g plans, to c o n s tru c tio n and in te rio r p la n n in g and design. R ig h t d o w n to y o u r s e cre ta ry’s ch a ir. B u t m o st im p o rta n t, w e ’ll be on ta rg e t, on tim e and on the m oney Call us. W e ’d like to d iscu ss y o u r p ro je c t 110 EAST 7TH ST.. W ATERLOO, IOWA 50705 PHONE 319/ 23 4 -6 6 4 1 Digitized N o for r t h FRASER w e s te rn B a n k e r, Ju ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 First N ational of C linton Names Vice P resident Thomas K. Killion has been a p -• pointed vice president and trust officer of the First Na tional Bank in Clinton. Mr. Killion, 35, a g r a d u a t e of Grinnell College and th e Law School of Drake ^ University, D e s Moines, has been with the trust de T. K. KILLION partments of the Central National Bank and T r u s ty Company, Des Moines; the First Na tional Bank of Dubuque, and the Belvidere National Bank and Trust Com pany in Illinois. Most recently he was vice president and trust officer at th e ^ Belvidere bank. East C entral AIB Names O ffice rs • David Malloy, assistant vice presi dent of the Farmers Trust and Sav ings Bank of Williamsburg, has been elected president of the East Central Iowa Chapter of the American I n - # stitute of Banking. He succeeds Don Boland, assistant cashier of the First National Bank of Marion. Other new officers elected at the group’s annual banquet are: first vice* president, Barbe Cherrier, Merchants National Bank, Cedar Rapids; second vice president, Kim Nelson, assistant vice president, Farmers Savings Bank, Marion, and treasurer, Marcia Bair.* Mt. Vernon Bank and Trust Co. Iowa News 85 Bluegrass Bankers Elect New O fficers Jack Elliott recently was elected ^ president of the Bluegrass Bankers Association at the group’s spring meeting. He is vice president of the Security State Savings Bank of Mount Ayr. 0 Other officers elected are: vice pres ident, John H. Muller, vice president, Okey-Vernon National Bank, Corning; secretary, Jon E. Foley, assistant vice president, First National Bank, Cres£ ton, and treasurer, Allen Payne, Bed ford National Bank. H erb O llenburg Honored • For 50 Years of Banking Herb L. Ollenburg, president of the Hancock County National Bank, Gar ner, is being hon^ o r e d by directors ® and staff of •the bank this month on his completion of 50 years with ^ that bank on J uly 15. A native of Hancock County, M r. O lle n b u rg H. L. OLLENBURG f started work with the Farmers National Bank, now the Hancock County National, in 1927. After serving in various positions in the bank and holding several officer • posts, he was elected president in 1944, the position he now holds. Mr. Ollenburg has a long history of service with the Iowa Bankers Asso ciation and served as IBA president • in 1962-63. He is a graduate of the School of Banking at Rutgers Univer sity. Mr. Ollenburg also served in the Iowa Senate from 1968 to 1972. Herb and Ruth Ollenburg have two • children. Their daughter, Sylvia Swale, lives in Mason City. Their son, Spen cer L. Ollenburg, joined Hancock County National in 1955 and is a vice president of the bank. Iowa City Bank To Build Drive-In Facility Construction has begun on a lim ited-service, drive-in banking facility for the Iowa State Bank and Trust Co., Iowa City. Ben E. Summerwill, bank president, said completion of the facili t y , which will include five drive-in win dows and three inside walk-up win dows, is scheduled for November 30. B eing a correspondent banker at Security takes a special kind of person. Our bankers know the business inside. And out. They have to. Because we want to give you the kind of service you deserve. Experienced officers like W ayne Johnson can give you invaluable assistance in investm ents. O pera tions. Consum er credit. IRA/Keogh. D ata processing. And ag-lending. S ta rt som ething with Security. S ta rt ta lk in g with W ayne about the correspondent services Security can provide. ^ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SECURITY NATIONAL BANK Sixth & Pierce Street • Sioux City, Iowa 51101 Member F.D.I.C. Call 712/277-6526 for immediate service. N orth w estern B anker, Ju ly 1977 86 Io w a N e w s Iowa Independent Bankers 6 th Annual C onvention New Inn, Lake O koboji July 21-23 A T. C. DUNLAP SYMPOSIUM on the economics of energy conservation and the bankers’ role is just one of the featured highlights of the 6th annual convention of the Iowa Independent Bankers to be held July 21-23 at the New Inn, Lake Okoboji. The complete program follows: Thursday, July 21 P.M. 12-7 12 3:45 5-8 Registration— Lobby of the New Inn. Couples’ Golf Tournament— Brooks Golf Course. Empress— Pick Up “Young Bankers”— Leaving from New Inn Dock. Wine and Cheese Tasting Party (adults only)— The New Inn Poolside. Plus listening and dancing to combo. Young Peoples Gathering— Picnic, social events and tournaments— The New Inn Beach (with social director). Friday, July 22 R. E. BARNETT A.M. 8:30 9:30 10:10 10.25 H. THOMPSON 11:25 DR. S. J. TUTHILL Noon First General Session— New Inn Convention Center. Call to Order— Thomas C. Dunlap, president of IIB, and chairman and president, South Story Bank and Trust, Slater. Invocation. Keynote Address— President Dunlap. Report of the executive vice president and legal counsel— Richard W. Berglund. “Perspectives on the Washington Scene”— Robert E. Barnett, practicing attorney and former chairman, Federal Deposit Insurance Corpora tion, Washington, D.C. Coffee Break. “Symposium on Economics of Energy Conservation and the Bankers’ Role” (agriculture and industry)— O. J. Tomson, president, Citizens National Bank, Charles City, and IIB convention program chairman — moderator. Panelists: John Kyi, vice president, Occidental Inter national Corporation, Washington, D.C., former United States Con gressman (Iowa’s 4th district), and assistant secretary of interior; Dr. Harvey E. Thompson, professor of agronomy and chairman of Agronomy Extension, Iowa State University, Ames, and Dr. Samuel J. Tuthill, vice president, energy resources, utilization, research and environment, Iowa Electric Light and Power Company, Cedar Rapids, and former assistant administrator for energy conservation and en vironment, Federal Energy Administration, Washington, D.C. Introduction and remarks of dignitaries: Edward A. Trautz, IBAA presi dent; Thomas H. Huston, superintendent of banking, Iowa Banking Department, and Robert D. Dixon, Iowa director of IBAA. Golf— Brooks Golf Course. Ladies Luncheon— New Inn Lakeview Dining Room. Davis County Mini-Singers, Bloomfield, Iowa. Saturday, July 23 A.M. 8:30 9:30 DR. L. E. KREIDER N o rth w e ste rn B a n k e r, Ju ly 3977 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Second General Session— New Inn Convention Center. Call to order— Gordon L. Mennen, vice president of IIB and president, LeMars Savings Bank. “Banking, Government, and Loss of Freedom”— Dr. Lawrence E. Kreider, executive vice president and economist, Conference of State Bank Supervisors, Washington, D.C. “Capital Alternatives for Small and Medium Size Banks”— Donald E. Holder, audit partner in Des Moines office, Peat, Marwick, Mitchell & Company, and Certified Public Accountant, Des Moines. 87 WE’LL SEE YOU AT LAKE OKOBOJI! DICK BUENNEKE • JIM EICK HOMER JENSEN We think more than “ lip service” should be paid the Independent Banking philosophy—that is why we do your kind of banking! Let us visit w ith you about how you m ig h t ben efit fro m th is type of re la tio n sh ip when we see you at the 5th Annual Independent Bankers C onvention, July 21, 22 and 23. Your Independent Correspondent Future—yours as well as ours! is Banking for a Brighter Banking for a brighter future. CAPITAL CITY BARK Des Moines, Iowa 50309 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w estern B anker, J u ly 1977 88 Iowa News Coffee Break. “Jimmy Carter’s Washington”— Walter Mears, chief political writer for the Associated Press and Pulitzer prize winner, Washington, D C . Annual business meeting. Mr. Dunlap presiding. Report of the resolutions committee— Chairman Gordon L. Mennen. Report of the nominating committee— Chairman Keith W. Campbell, president, Citizens State Bank, Sheldon. Election of officers. Announcements and awards. Adjournment. Social hour— New Inn Beach. Barbeque— New Inn Beach. Drake Named O ffice r Of Mason C ity Bank J. L. Menges, president of the American State Bank, Mason City, has announced that Charles R. Drake has been named a s s is ta n t vice president, in stalment l o a n s . He is a graduate of I o w a S t a t e University and for four years worked in operations as C. DRAKE assistant cashier at the University Bank and Trust Com pany in Ames. In 1975 he joined the First Federal State Bank in Des Moines as assistant vice president and assistant manager of the Clive Office. Recently he was in the instalment loan department and responsible for Master Charge. both the Linn County and Iowa Chap ters of the Cancer Society. For four years, she has been a member of the board of Regency East Owners Asso ciation, in which condominiums she and her husband, Dr. John F. Kanealy live. R etires at Union Lyman R. Lunday, chairman of the Union-Whitten State Savings Bank, Union, recently resigned after 33 years of service. Newly elected chairman is H. E. Long of Clearwater, Fla., son of the bank’s founder, the late Charles F. Long. A ttend IBAA Sem inar Joins Riverside Bank D a v i d W. G o o d a 1 e has joined the Peoples Trust and Savings Bank in Riverside as assistant cash ier. He is a 1977 graduate of the U n i v e r s i t y of Iowa, Iowa City, in marketing. D. W. GOODALE Jam es W. U pton Funeral services were held recently for James W. Lipton, Sr., 89, a banker in the Ida Grove-Arthur community # for the past 52 years. Mr. Lipton helped organize the Arthur Trust and Savings Bank in 1925. It was merged in 1961 with the Ida County State Bank, of which he was chairman at th e # time of his death. Adel Banker R etires The Dallas County State Bank, Adel, recently held a retirement party® for Vera McGinnis, assistant cashier and customer representative. Ms. M c Ginnis will continue to work part-time as a teller and secretary from time to time. 0 She joined the bank in 1953. In 1956 she became a teller, in 1964 as sistant cashier and in 1968 customer representative. M arcus Bank To Expand The Farmers State Bank, Marcus, has announced the beginning of con struction to enlarge its present build ing and construct additional office and storage space. The interior of the bank also will receive a complete renova tion including new carpeting and wall paper. C. C. Van Dyke is the bank’s president. Cedar Rapids Bank Elects D irector William H. Brenton, chairman of Brenton Bank and Trust Company of Cedar Rapids, has announced the elec tion of Esther Kanealy to the bank's board. Mrs. Kanealy, a graduate of Northwestern University of Evanston, 111., is a past chairman of the Linn County Cancer Society and has been a director of Mercy Hospital, the Junior League of Cedar Rapids, and Northwriisferii B a n k e r , J u l y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 PARTICIPATING in the Senior Bank Of ficers Sem inar of the Independent Bank ers Association of America in Boston, Mass., are, from left, fro n t row: Robert J. Ralston, pres., First Natl., West Union; Frederick W. Hagemann, e.v.p., State Bank of Waverly, and Wendell D. Wilier, e.v.p., Decorah State Bank. Back row, from left: G. Kenneth Edge, pres., Graettin g e r State Bank; Mickey E. Lewis, e.v.p., Farmers Savings Bank, Fremont; A. Rus sell Schmeiser, 2nd v.p., First Natl., Iowa City, and Allen L. Dayton, chm n., Kellogg Savings Bank in Iowa, Lincoln, Nebr. State Bank of Ledyard To Have New Home The State Bank of Ledyard has an nounced plans for the construction o f ^ a new bank building, scheduled for completion in October. The new facili ty will house two insurance offices, two large banking offices, lobby and book keeping room with a new vault. # Ankeny and Wiederhot of Blue Earth, Minn., is general contractor. 89 Worthwhile endeavors always take extra effort Extra effort is the principal ingredient we put into every correspondent banking endeavor. Enterprise of this sort has characterized our service since the first days more than ninety years ago when cattlemen arriving in Chicago made The Drovers their headquarters bank. We pioneered in crediting their newly-earned cash to banks back home and thus built strong ties of trust and integrity with banks from the Midwest to the Rockies. In Drovers Country you’ll find experienced help for just about every known correspondent banking need including loans and overlines, clearings and transit services, bond and investment portfolios. W on’t you call to tell us how we can exert extra effort on your behalf? TheUruvers National Bank of Chicago Illu s tra te d ab o ve is F red eric R e m in g t o n ’s “ C u t t in g O u t A S t e e r . " A 1 4 x 1 7 -in c h re p ro d u c tio n s u ita b le to r fra m in g is a v a ila b le w ith o u t cost o r o b lig a tio n upon re q u es t. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47th & Ashland Ave. * Chicago, Illinois 60609 * Phone (312) 927-7000 * Member Federal Deposit Insurance Corp. * Member Federal Reserve System • Member Chicago Clearing House Association N orth w estern B anker, Ju ly 1977 90 Io w a N e w s C. CEBUHAR J. M. EARLEY Buy C o n tro llin g In te rest In Cedar Rapids Bank Controlling interest in United States Bank, Cedar Rapids, has been pur chased by the three local bankers, Charles Cebuhar, J. Michael Earley and Steve L. Allison. They purchased the stock from the estate of the late L. J. Pochobradsky, Jr., former presi dent of the bank, and other stockhold ers. Charles Cebuhar was named chair man and president of the bank. He formerly was senior vice president and senior trust officer at Peoples Bank and Trust Company, Cedar Rapids, for 17 years. Dwayne S. Smith was named execu tive vice president. Previously Mr. Smith was correspondent bank officer at the lowa-Des Moines National Bank, Des Moines, for nearly 16 years. J. Michael Earley, former trust of ficer at Peoples Bank and Trust Com pany for four years, was named senior vice president and trust officer. Ste phen L. Allison was named senior vice president. He was vice president at Peoples Bank and Trust Company for 16 years. m S. L. ALLISON D. S. SMITH In addition, the following five new directors were elected: Fred J. Gibson, president of Fred J. Gibson, Inc., Realtors; Roger Welty, president of Welty Way Products, Inc.; Leo Plotz, chairman of Paulson Electric Co., Inc.; Vivian Trickey, vice president of Mays City Lanes, Inc.; and Herald Smith, Jr., president of Cedar Rapids Steel Transportation, Inc. Dale Hilton, president of Morningside State Bank, Sioux City, and Paul Dunlap, president of Hawkeye Bancorporation, headquartered in Des Moines, have announced an agreement for the purchase of a major interest in Morningside State Bank by Hawkeye Bancorporation. The Sioux City bank has total assets of $16 million. Details of the agreement were not released. Acquisition is subject to Fed eral Reserve and other regulatory ap provals. William P. Norris is the new chair man and chief executive officer of Morningside State Bank. Mr. Hilton remains as president. Mr. Norris has for ALL your Bank Supplies Bank P rinting • Checks • C om puter Supplies • O ffice Needs • AND IT WON'T BE LONG UNTIL OUR SALESMAN WILL BE AROUND! The “WORKS” you need to RUN your bank United States Check Book Company 1201 SOUTH 16TH STREET - OMAHA, NEBRASKA 68108 In Nebraska Call 402-345-3 162 Out of State Call Wats Line 1-800-228-9246 Digitized N o rfor t h wFRASER e s te rn B a n k e r, Ju ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 Sioux City Banker W ins A d ve rtisin g Award Leslie H. Olson, president of The ® Toy National Bank of Sioux City, re cently was presented an award for act ing “like a regular guy” in the bank’s television advertising. Mr. Olson’s 30-second television ® commercial, in which he appealed to children to bring their parents to the Hawkeye To A cquire Sioux C ity Bank DON'T FORGET US AT U.S. CHECKBOOK GO. We have Plenty of “ TIME” for you! been with Hawkeye Bancorporation for five years, most recently as presi dent and chairman of Houghton State Bank, Red Oak. He has 34 years of banking and business experience. ® Hawkeye now has 16 member banks. An application is pending with the Federal Reserve Board for ap proval of the acquisition of Commercial State Bank, Marshalltown. ® LES OLSON, pres., Toy Nati. Bank, Sioux City, offers free Tootsie Pops to children in his award-w inning television com m ercial asking kids to get th e ir parents to s w it c h ^ to the Toy Bank. ^ Toy Bank and receive a free Tootsie Pop, was judged the best single tv com mercial with production budget o v e r^ $500 in Sioux City Advertising Club’s recent Knobby Awards Competition. The 76 entries in the television cate gories were judged by the Advertising Club of Kansas City, Mo. £ The commercial was produced and directed by The Toy Bank’s advertis ing agency, Bass-Magnuson Advertis ing. Joins Royal Bank David L. Jacobsen has joined the Home State Bank and Home Services Inc., of Royal in an officer training q capacity. He is a 1977 graduate of the W University of Iowa, Iowa City. He is a licensed real estate broker and in surance agent aj&d will be working for the insuranglprand real estate de- £ partment, W orW services, and for the bank. Io w a N e w s 91 common stock dividend by transfer of $200,000 from reserve for contingency to common capital. Capital now totals $400,000. State Bank of Vinton, common stock dividend by transfer of $260,000 from undivided profits to common capital. Capital now totals $520,000. IACHA Elects O fficers PICTURED is the m odel of the new b u ild in g fo r the First N ational Bank o f Muscatine, now under con stru ction . «First of Muscatine To Have New Building £ ^ RO U N D BREA KIN G ceremonies Griswold State Bank sold 300 au " were held recently for First Na thorized by unissued common shares tional Bank’s new 50,000 square foot, for $750 per share totaling $225,000. ^three-story bank and office building at Distribution of sale proceeds as fol Second Street between Cedar and Wal lows: common capital — $30,000; nut Streets in Muscatine, according to surplus — $120,000, undivided prof George A. Shepley, president. its — $75,000. Capital now totals The three-story high main entrance $120,000. iipiobby with balconies at the upper two South Ottumwa Savings Bank, com floors will face downtown Muscatine. mon stock dividend by transfer of The main banking floor will feature a $400,000 from undivided profits to wide view of the Mississippi River and common capital. Capital now totals a circular teller area with wood ceil- $800,000. i|||;ng. An automatic computerized teller Panora State Bank, common stock and night depository facility will be lo dividend by transfer of $100,000 from cated inside the main entrance. Park undivided profits to common capital. ing below will be provided with an ele Capital now totals $150,000. vator lobby at that level. Valley State Bank, Rock Valley, Hi The existing facility will remain in operation until the new bank opens in the fall of 1978. Architectural and engineering de sign services for the new building will •be provided by Stanley Consultants, Inc. Priester Construction Company, Davenport, is contractor. New officers for 1977-78 were elected last month by members of the Iowa Automated Clearing House As sociation. They are: President — Raymond G. Johnston, president and chief executive officer, Central National Bank & Trust Com pany, Des Moines. Vice President — John M. Sagers, president, Peoples Bank & Trust Com pany, Cedar Rapids. Treasurer — Robert W. Lemon, senior vice president and cashier, Bankers Trust Company, Des Moines (reelected). Secretary — Larry L. Retherford, vice president in charge of operations, Central National Bank & Trust Com pany, Des Moines (reelected). IACHA has 621 member banks for 100% membership in the 93 counties belonging to its service area. Six south western Iowa counties belong to MACHA in Kansas City. IACHA is the only statewide ACH in the nation with 100% membership. MR. BANKER: WHAT CAN WE DO FOR YOU? Increases Capital The following changes have taken place within capital accounts of Iowa ^hartered banks: Chelsea Savings Bank, Belle Plaine, common stock dividend by transfer of $100,000 from surplus to common capital. Capital now totals $500,000. £ Cherokee State Bank, common stock dividend by transfer of $460,000 from undivided profits to common cap ital. Capital now totals $1 million. Dubuque Bank & Trust Co., comi|§pon stock dividend by transfer of $750,000 from surplus to common capital. Capital now totals $3 million. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • • • • • • • Provide you with bank layouts (no obligation) Give you estimates with guaranteed cost Furnish you with blueprints & specifications Get you competitive bids for lower costs Supervise your construction project Do your interior design & color coordination Supply you with bank fixtures & equipment Guarantee you will be a satified customer ALL YOU DO IS GIVE US A CALL: EARL F. KOOKER & ASSOCIATES BANK DESIGN CONSULTANTS BOX 87 • SPENCER, IA 51301 • PH 1-71 2-262-1499 N orth w estern Banker, Ju ly 1977 92 River Hills Office, is now manager. John Halma, who recently was gradu ated from Central College at Pella, has been assigned to the River Hills Office ^ as assistant manager. Dan Sampson, assistant vice president and former River Hills manager, has been assigned to the instalment loan department in the main bank and will assist Ron An- £ derson, vice president in charge of the instalment loan department, by taking supervision of loan collection and all credit card activities. * Des Moines News ITH his retirement on June 1 as vice president in the correspon dent bank depart ment at Central National B a n k Trust Company, Russell G. Plager, concluded a 43year career in ag riculture and fi nance. After serv ing 35 years with various ag firms R. G. PLAGER in the midwest, Mr. Plager joined Central National in 1969. His varied experience in a broad range of marketing and managerial positions with t h e s e companies equipped him with unique qualifica tions to serve community banks and their ag customers in the farm belt. A native of Grundy Center, la., Mr. Plager was graduated from Iowa State University in June, 1934, with a BS degree in agriculture and a minor in economics. His outstanding academic career was climaxed with the presiden cy of his senior class and membership in the senior honorary. His first job was as a cattle buyer with Swift and Company in Sioux City, where he was also involved in beef sales as well as conducting meat cutting demonstra tions and lectures. Three years later he joined the Na tional Live Stock and Meat Board in Chicago, serving there from 1937 to 1942. For the next 20 years he was employed by John Morrell & Com pany, the first three years at Sioux Falls and from 1945 to 1962 in Ot tumwa, la., where he became manager of the ag service department. This in volved a variety of tasks ranging from innovation of new ideas to the initia tion of resulting projects. During his years with John Morrell W N o r th w e s te r n B a n k e r , Ju ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 & Co., Mr. Plager worked extensively with livestock associations, 4-H clubs, Future Farmers of America, the ag ex tension service, state department of agriculture, bankers, veterinarians, and individuals. During this period, when he had broad responsibilities in marketing, he published numerous ag and livestock articles, was a sought after speaker, sponsored livestock shows to improve the quality of livestock, assisted in es tablishing 15 livestock marketing points, developed live hog and carcass grades, and proposed projects to at tract college trained personnel to seek employment with the company. He was also a director of a Morrell sub sidiary, Foxbilt Feeds. From 1962 to 1969 he was sales manager of Interstate Producers Live stock Association in Des Moines, a farm cooperative engaged in livestock marketing. Later, he was in charge of marketing from 1967 to 1969 for Squealer Feed Co. in Des Moines be fore joining Central National that year. Included in his many honors is his designation by Iowa State University and the Swine Producers Association as “Honorary Master Swine Pro ducer” and his selection as an Honor ary Life Member in the 4-H clubs. Russ and Clarice Plager will con tinue making their home in Des Moines. He has contracted to serve as a leader/host of an Iowa Bankers People to People tour of Europe and the Soviet Union in the early summer of 1978. * * * Larry Wenzl, president of First Fed eral State Bank, has announced the following p r o m o t i o n and staff changes. Bob Paton, assistant cashier and formerly assistant manager at the * * ® Andy Friedmeyer recently was elected correspondent systems officer of Capital City State Bank. Mr. < Friedmeyer joined the bank as a part-time p r o o f operator in 1971 a n d a l s o ha s * w o r k e d in the c o m p u te r p r o gramming depart ment a n d h a s A. FRIEDMEYER b e e n t h e pro grammer supervisor. He has worked extensively with the correspondent banks in the data processing area and will continue in this capacity. . * * * David L. Miller, president of the West Des Moines State Bank, has an nounced the election of Phyllis Brow n0 to assistant vice president. Mrs. Brown has been affiliated with West Bank since August 1965. John R. Fitzgibbon, chairman, pres ident and chief executive officer of the lowa-Des Moines National B a n k , has announced t h a t H. Lynn Horak has joined the correspondent banking depart ment as a corre spondent banking officer. M r. H o r a k H. L. HORAK joined the bank in June of 1972 as a management trainee.’ Following the training program, he was assigned to the loan service de partment where he served as loan ser vices representative and loan account-^ ing manager. In 1974 he was elected personal banking officer and assigned 93 Hook your line to ours and got oll the following services. The Big "C" data center can save your bank a lot of work and time. At very competitive prices, too. We provide full on-line services to your bank, including: teller transactions, CBCT transactions, ATM transactions, balance inquiry, file maintenance, new accounts, direct deposit, stop payments, holds, and proof of deposit. Want to know more? Call Eddie Wolf or Claude Dawson on our toll FREE Wats line. 800-362-1615 Eddie Wolf Vice President Claude Dawson Computer Services Officer W e w an t to be your correspondent bonk. “C https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 99 Central National Bank 8 -Trust Company DES MOINES/WEST DES MOINES N orth w estern B anker, Ju ly 1977 94 Iowa News tered Bank Holding Companies. The group's membership includes 163 reg istered bank holding companies, rep resenting over 50% of total U.S. bank deposits. Sioux City Bank P rom otes 2 W. W. DAVIS G. E. LOVERINK T. L. QUINUN M. H. GUSTIN Security National Bank of Sioux City has announced the promotions of Carol Schoening to trust administra tion officer and Roger Schnell to trust officer. C. SCHOENING to the Douglas Office, and in 1975 he was named managing officer of that office. He is a 1972 graduate of the University of Northern Iowa, Cedar Falls. Other promotions announced in clude: William W. Davis, senior per sonal banking officer and assistant manager of retail banking; Gene E. Loverink, operations officer, retail banking; Thomas L . Quinlin, opera tions officer and manager of customer service, and Maureen H. Gustin, op erations officer and manager of special services. Mr. Davis joined the bank in 1972 from the Merchants National Bank in Cedar Rapids. He is a graduate of Coe College. Mr. Loverink joined the bank in 1973 after seven years with Brenton banks. He formerly was operations of ficer and manager of customer service. Mr. Loverink is a graduate of Central College, Pella. Mr. Quinlin has been with the bank since 1969 and most recently was manager of special services. He is a graduate of the University of Omaha. Mrs. Gustin, a 1972 graduate of Wheeling College in West Virginia, joined the bank in 1974 as a manage ment trainee. She also has worked for the National City Bank in Marion, Ohio, as a cost analyst. She most recently has been supervisor of the sys tems input department. ❖ ❖ ❖ Paul Dunlap, president of Hawkeye Bancorporation, Des Moines, has been elected to a three-year term on the board of The Association of RegisDigitizedNfor o r t FRASER h w e s t e r n B a n k e r , Ju ly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 Cedar Rapids Men Named C e rtifie d C om m ercial Lenders John E. Mangold, senior vice presi dent, and Gene A. Schmidt, vice presi dent, of The Merchants National® Bank, Cedar Rapids, were two of more than 215 bankers from across the nation who were recently recog nized by the American Bankers A sso-ciation as Certified Commercial Lend ers (C C L ’s). The CCL program, which is spon sored by the A BA ’s commercial lend ing division, is designed to raise the^ professional standards and improve the commercial lending function within the commercial banking system by giving special recognition to those commer cial lenders who fulfill prescribed stan-^ dards of performance and have dem onstrated a high level of knowledge and experience in their field. R. SCHNELL Ms. Schoening has been with the bank since 1958. She attended the Basic Trust School in Lincoln, Nebr. Mr. Schnell joined the bank’s trust de partment in 1972 after graduating from Wcstmar College where he majored in administration and eco nomics. He is working toward an MBA at the University of South Dakota in Vermillion. J. E. MANGOLD G. A. SCHMIDT Goldfield State Begins Construction Construction has begun on an 8,208 square foot building for Goldfield State Bank, to be located south across the street from the bank’s present building, according to R. Scott Whyte, executive vice president. The new facility will include a main floor and basement. Features will be four private offices on the first floor, drive-up window, night depository, ex panded safety deposit box area and cash vault, customer coupon booth, bookkeeping and teller line with built® in work areas and a large lobby and waiting area. The basement will contain a large community room, employees’ lounge and kitchenette, directors’ room, rest® rooms, storage areas and mechanical room. The outside walls of the build ing will be brick with the roof line decorated with a metal mansard. Construction is scheduled for com pletion in October of this year. 95 Iowa Group Meeting Photos NEW OFFICERS — Gr. 5 Chmn. Ron Sealock, exec, v.p., Council Bluffs Sav. Bk., and Secy. Richard Randall, pres., Dunlap Sav. Bk. R I G H T — Gr. 3 Secy. 0. Jay Tomson, pres., Citizens Nat l. Bk., Charles City, and Chmn. Glen Emmons, exec, v.p., N orthwood St. Bk. NEW HAIR STYLES are discussed du rin g Gr. 6 m eeting by Homer Jensen, e.v.p., Capital City St. Bk., Des Moines; G. M. Barnett, Jr., pres., G uthrie Co. St. Bk., G uthrie Center; Joe Knock, pres., Iowa St. Sav. Bk., Creston, and Supt. of Bk. Tom Huston. RIGHT —^ Don Heineking, outgoing chm n. o f Gr 3 and Wally Hilgenberg, speaker at Gr. 3. Don planned the Gr. 3 program , and Wally is bestknown fo r his role as a Minnesota Viking foo tb all star. GR. 12 C ontinuing as officers o f Gr. 12 are Chmn. Max Kiernan, p re s , Alton Sav. Bk., and M. J. Dick Kuehl, pres., Sec. St. Bk. Lake Park. RIGHT — Dave McNichols, educ. dir., IBA; Bill Greaves, v.p.. Central N a t’ l. Bk., Des Moines; Bud Cross, a v p Firs! N at’ l. Bk., Chicago, and Jim Hill, v.p., Harris Bk., Chicago. — B i * w l ti J _E,FT , irf.hown at Gr 12 are bankers wives Mrs. Al (Delores) Maser, Lakes N a t’l. Bk., Arnolds Park; Mrs. Bob (Babette) Brenton ■^vfe of IBA pres and Mrs. Leo (Shirley) Carlson, First NatT. Bk., Sibley. RIGHT — Gr. 12 also finds George Shadle, pres., Iowa Tr. & bav. Bk., Estherville; John Spies, pres., Iowa Tr. & Sav. Bk., Em m etsburg, and Bob Wahlgren, 2nd v.p., C ontinental Bk., ChiC3gO * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rthw estern Banker, J ul y 1977 96 I ow a News ber for introduction of debits into the ACH stream. It was reported by NACHA last month that the pilot pro gram had handled thousands of debit items under the pilot program and a s # of the June reporting date, only 12 items in the entire nationwide system had been returned for one reason or another. All other debit items were processed in routine fashion. # Mason City Bank Names Two Officers PICTURED is the new Marion Financial Center now under construction. Construction Begins on First of Marion HE First National Bank of Marion has begun construction of its new Marion Financial Center on property bounded by Seventh Avenue, Third Street and Eighth Avenue. The build ing will adjoin the existing First Na tional Motor Bank on Seventh Avenue, according to Phil Morris, president. The center was designed by Larson and Unzeitig, Inc. of Cedar Rapids. Completion date is scheduled for the spring of 1978. The building will feature 12,000 square feet on two levels. Construction includes buff colored modular face brick and a ribbon fascade of sculp tured bronze-anodized aluminum to harmonize with the existing Motor Bank. According to Mr. Morris, the main level will include executive of fices and the farm, commercial loan, instalment loan and trust departments. T IACHA May Admit Thrifts To System Membership Officials of the Iowa Automated Clearing House Association, headquar tered in Des Moines, stated last month that the IACHA board has been con sidering for some time the matter of admitting savings and loan associations and credit unions to regular member ship in the electronic fund clearing house. The IACHA board met again during June and was believed to be favorably considering the proposal. Representatives of Iowa credit unions have formally discussed the plan with IACHA officials. An in formal query was made by a savings and loan association official, but no formal request for membership had been made by mid-month. DigitizedN ofor r t hFRASER w e s t e r n B a n k e r , J u ly 1977 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis As of last month, 18 of the 26 op erating ACHs in the nation have ad mitted thrifts to full membership, giv ing credit unions and savings and loans one seat each on their respec tive ACH boards. The United States Justice Depart ment some time ago filed actions against the ACHs in California and Colorado in a move to force those clearing houses to admit thrifts to the bank clearing house systems. Cali fornia last month said it would now ad mit the thrifts to membership and it was reported that Colorado would fol low suit. Nationwide, the 25 operating, ACHs, all of which belong to the Na tional Automated Clearing House As sociation, have been operating basical ly a crediting program. However, a pilot program is underway at this time and scheduled to conclude in Decem- Richard W. Siegmund is the new ^ auditor at United Home Bank & Trust Co., Mason City. Larry W. Lee is the new instalment loan officer. Mr. Siegmund, a graduate of the University of Nebraska at Omaha, had^ been auditor at the First National Bank of Fort Dodge for the last three R. W . SIEGMUND L. W . LEE and a half years. He is originally from # Omaha, Nebr., where he was with the First National Bank for five years. Mr. Lee, who attended Missouri State College at Kirksville, was man ager of the Mason City branch of Peo-# pies Finance Co. from 1969-April, 1976, and for two years was assistant manager of the Ottumwa office of Peo ples Finance. Anthon Bank Opens in New Building PICTURED is the new home of the First T rust and Savings Bank, Anthon. A bout 1 , 5 9 ^ people attended a recent open house held by the bank, according to Walter Sterrett, Jr., president. S tructura l Designs, Inc., of Holstein was the builder. For more information, use the postage free convenience card. B a n k e rs M a rk e tp l ace Northwestern Banker • 306 15th Street • Des Moines. Iowa 50309 • 515/244-8163 Saves Dollars M akes Sense T h e P h ilip s P 3 O 0 S m a ll O ffic e C o m p u te r . j, ~>^.m T o d a y , every n ic k e l ha s to w o rk lik e a d o lla r . W h ic h is w h y w e b u ilt th e P3° 0 C o s ts le s s to a c q u ire ; c o s ts le s s to o p e ra te . It's d e liv e re d as a c o m p le te in -h o u s e e le c tr o n ic a c c o u n tin g s y s te m th a t d o e s y o u r D .D .A ., s a v in g s , tim e c e r tific a te s , a n d p a y ro ll m o re e f fic ie n t ly . T he P300 w ill h e lp red uc e y o u r o p e ra tin g c o s ts and m ake y o u r b u s in e s s m o re p r o fita b le . Unhappy With Your Service Contracts? L o o k us o ver, we have c o n tra c ts a v a ila b le th a t in c lu d e p a rts and la b o r. PHILIPS DATA BUSINESS EQUIPMENT, INC. o M 1 P ® OR LEASE Want to cut accounting costs? Call an e x p e rt-y o u r Philips Man OFFICES: 1228-2nd Ave., Des Moines, Iowa 50314 |515]288-3000 625-1st Ave. S.W., Cedar Rapids, Iowa 52401 [319] 366-6000 FOR SALE GENERAL BANK EQUIPMENT & SYSTEMS, INC. FINANCIAL PRODUCTS, INC. 9 4 1 3 - 1 Street P. O. Box 27512 Omaha, N E 6 8 1 2 7 ( 4 0 2 )3 3 1 - 1 3 1 3 IltlVLlÜl liit L . Available fo r im m ediate delivery. In stant m od ular drive-in te lle r un its. Ideal fo r expansion or to esta blish a rem ote drive-in. P rebuilt ready to in sta ll on your s ite — requires on ly electrica l hook up. Includes all equipm ent n e e d e d electric heat and air co n d itio n e d , con d u it fo r alarm and phone. W rite fo r brochure of other sizes and m odels available, up to fu ll branch bu ild in g s. q 810 East Crabtree A rlin g to n Hts., III. 60004 (312) 398-0633 P.O. Box 1035 Eau Claire, W isco n sin 54701 Phone: 715/835-8160 Norelco Microfilm Lamps NO. FCS HAN D S T A M P G U ID E THE INK S IN THE S T A M P I YOUR CUSTOM ERS F A S T E S T S E R V IC E TO A V A IL A B L E LOTS OF: THE W IT H NO IN K PADI No. NO R E-IN K IN G ! OPEN r ” 25,000 FCS ) ANDERSON IMPRESSIONS! | Can t leak, can t dry out. Stamps crisp and clean every time. Can be made any size. Purple, red or black ink. DESMOINES STAMP MEG. COMPANY M anufacturers o f M arking Products Since 1880 851 SIXTH AVE. • BOX 1798 • DES MOINES. IOWA 50306 PHONE 1515) 288-7245 1m !m U m HIGH INTENSITY DRIVE-IN SIGNS Sitler’s S ta in le s s s te e l or s ta tu a ry b ro n z e f in is h . E a s ily in s t a lle d a n d m a in t a in e d . I m m e d ia t e Q d e liv e r y . S a t is f a c t io n G u a r a n t e e d ! BANKER’S EQUIPMENT SERVICE Banking Machine Dealei's and Consultants 11561 ' Five NCR 42-30 w in d o w posting m achines. Best offer. Contact: David Threlkeld, C lin to n Federal Savings & Loan A s s o c ia tio n , C linton, IA 52732. Phone (319) 243-1512. $3.75 3.60 3.50 3.35 3.25 s u p p l ie s , i n c . P.O. Box10-Z 702 E. W ashington St. W ashington, Iowa 52353 Ph.319-653-2123 0 a ll j?eap 12TH A V E N U E S O U T H BURNSVILLE, FOR SALE 6-2 4 2 4 -4 8 48-72 72-96 120- UP We prepay any shipm ent over $100.00 net. M inim um order, $25.00 net. W rite for special prices on other lamps. Your satisfaction guaranteed. Please save for future reference. ■HM > 0 MN 55337 ( 6 1 2 ) 8 9 0 -6 6 6 1 Is T h e T im e Reconditioned like new bank equipment — since 1937. Complete line of bank machines To P ro m o te IR A a n d K E O G H Burroughs; Teller Machines Adding Machines M agnetic Ink Encoders Check Protectors Brandt Cashiers Paper Shredders A complete line of coin handl ing equipment. Send today for samples and prices on our m ulti-color bro chures on IR A and Keogh. Used successfully by commun ity b a n k s th ro u g h o u t th e Upper Midwest. N o rth w e s te rn B a n k e r q 306 15th Street Des Moines, Iowa 50309 For more information, use the postage free convenience card. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis @ 98 Be Counted M odern Technology? An ominous rumble from the rear of the car in which a new member of a car pool was riding to work one morning made the man wonder if they’d make it. Just as he was about to mention it, the driver pulled into a filling station. Instead of telling the at tendant about the noise, he noncha lantly ordered him to “fill it up.” As they drove away, the passenger noticed that the rumble had completely disap peared. Mystified, he asked the driver how a full tank of gas could eliminate the noise. “Oh, there’s nothing wrong with my car,” replied the owner. “My fouryear-old stuffed a golf ball into the gas tank, and when the ball starts to rattle around 1 know it’s time to fill the tank again.” T h rifty Employee The owner of a company offered $25 for employes’ money-saving ideas. First prize went to the man who sug gested the amount be cut to $10. Shoe Shopping Shoe store manager to customer: “Yes, sir, we have a fine selection of loafers, I ’ll see if I can get one of them to wait on you.” The old man heard the “stand up” and did so. He looked around, paused with a puzzled look on his face and^ said, “Preacher, I don’t know what we’re voting on, but it looks like you and I are the only ones for it.” “ I’ m sorry, sir, but ‘J im ’s Garage’ is not sufficient id e n tifica tio n .” Successful M arriage A reporter was interviewing an old gentleman who was celebrating his 100th birthday: “To what do you at tribute your long life and good health?” “Well,” said the old timer, “when my wife and I were married 80 years ago, we made an agreement that every time we argued and she started fussin" at me, I'd put my hat on and go outdoors for a walk until she calmed down.“ “ But what’s that got to do with your good health?” “Well, sir, I’ve spent most of my life in the open air.” Christmas C lub .................................................. . • •• • C linton F ed era l Savings & L o an Association C ollateral Control Corporation (N Y TCO ) . . 5 0 , C ontinental Bank, Chicago ..................................... 22 97 51 11 D aktronics ............................. D ata Business Equipm ent D eL uxe C heck Printers . 8 97 3 97 89 D Des Moines Stamp Mfg. Drovers N ational Bank F JULY, 1 9 7 7 A Acorn Printing Company ..................... Actron, In c ....................................................... A etna Business C redit ............................. Am erican Express Company, Travelers Cheques ............. ................. A m erican N ational Bank, C hicago . Am erican N ational Bank, St. Paul . . Astor Tow er H o t e l ..................................... . . 10 .. 97 7 12, . . .. . . 13 54 41 33 Ban co F in an cial .......................................... Bank Building Corporation ................ Bankers T rust Company ........................ . . . . .. 36 24 82 Capital City State Bank, D es Moines C entral N ational B an k , D es Moines . . . . . 87 93 B C N orthw estern B a n k e r , July https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1977 • A preacher had succeeded in putting an elderly man to sleep with his ser mon. Preaching for a decision, in the midst of his sermon, he shouted, “Those of you who want to go to hell,® STAND U P!” F in an cial Products In c ..................................................... 97 F irst Mid A m erica ........................................................ 14 F irst N ational L in coln ................................................ 79 F irst N ational Ban k, M inneapolis ...................4 6 , 4 7 F irst N ational Bank, Om aha ...................................... 77 F irst N ational Bank, St. Pau l ................................ 39 G G eneral Bank Equipm ent & System s, Inc. . . 9 7 Gross, Kirk Com pany ................................................... 84 H arris T rust & Savings II Bank I ................................ 21 Illinois B an k Building Corp........................................ 26 Iow a-D es Moines N ational B an k ........................ 1 0 0 K Kooker, E . F . Associates ........................................... 91 Endorsing a Check • A young lady walked into a bank and addressed the paying teller: “ I want to have this check cashed." “Yes, maam,” replied the teller. “Please endorse it.” # “Why, my husband sent it to me. He is away on business.” “Yes, maam, but just endorse it. Sign your name on the back and your husband will know we paid it to you.” # She went to the desk and a few min utes later returned to the window with the check endorsed: “Your loving wife, Edith.” • W e’ re Even Doctor: “Your check came back.” Patient: “That makes us even; so did my arthritis. L Law ren ce System s .......................................... LeaseA m erica .................................................. M M anufacturers H anover T rust ............. M erchants N ational Bank ........................ M idland N ational Bank, M inneapolis M ortgage G uaranty Insurance Corporation .................................................. N . . 18, 22 .... 20 .... 15 4* 9, 16, 17 N ational Bank of Com m erce . . .............. N ational Boulevard B an k of Chicago N orthwestern B ell Telep hon e Company .... .... .... 81 35 19 O m aha N ational B an k .... 4 , # O ................................ S St. P au l H ospital & Casualty ................ Security N ational Bank, Sioux City . . S itler’s Supplies, In c ....................................... __ .... ____ 10 85 97 U nited U nited U nited U nited U nited ____ ____ .... . . 72, .... 65 99 2 A ____ 53 U Bank of D e n v e r ............................. G uaranty Corporation ................ Missouri Bank of Kansas City States Check Book Com pany . States N ational B an k , Om aha V V an W agen en, G. D . Com pany ........... 9 (W 74 For Your Convenience DES M O INES, IOWA 50309 Bankers M a r k e t p la c e è ‘the guide to area suppliers FIRST CLASS Permit No. 73 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis é July Convenience Card for Bankers Marketplace circle the number Bankers Marketplace Please send me m ore in fo rm a tio n at no co st or o b lig a tio n . N a m e _______________________________ Title_________________________________ Bank________________________________ Convenience Card A d d r e s s ____________________________ C ity___________State_______ Zi p_______ Phone_______________________________ Circle the num ber 1 2 3 4 5 6 NORTHWESTERN BANKER Des Moines, 06ÿ>thSt. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IA 50309 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 “I still say we’ll find a United Guaranty rep” They’re everywhere. (Well, almost.) Which can be important when you need fast service, relevant information and personal assistance in mortgage insurance. It’s another reason we’ve now more than $6 billion of insurance in force. Find out for yourself. W e’re • as 10 easyourtelephone- Hjnited Guaranty THE MORTGAGE INSURER # United Guaranty Corporation, 826 N. Elm, Box 21567, Greensboro, NC 27420 • (919) 373-0863 Contact: U n ite d G u a r a n ty R e s id e n tia l In s u ra n c e C o m p a n y • P.O . B o x 778, B e tte n d o r f, Io w a 527 2 2 In Io w a , c a ll (8 00 ) 2 92 -0 0 4 7 . In S ta te s b o r d e r in g Io w a , c a ll (8 00 ) 5 5 3 -8 9 7 6 U n ite d G u a r a n ty R e s id e n tia l In s u ra n c e C o m p a n y • 421 S .W . 6 th A v e n u e , S u ite 900, P o r tla n d , O re g o n 9 7204 W a s h in g to n a n d Id a h o , c a ll (8 00 ) 5 4 7 -1 0 6 4 . In O re g o n , c a ll (800) 4 5 2 -7 6 9 7 In https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Now we re giving you even more help for your money. With the Iowa-Des Moines as your correspondent bank, you have access to a concept of total service that makes your bank more competitive in your market area. For example, the Iowa-Des Moines is a BankCard Center, processing both Master Charge and BankAmericard/VlSA. This gives you duality; under this system, your merchant custom ers can co-mingle charge slips from both card s— one deposit does it all, and that makes things a whole lot easier. When you com e to us, you get one-stop correspondent bank ing service— from people who know their business and yours. That m eans you’re going to get a lot of help for your money. © 1977 Iowa-Des Moines https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis National Bank K . i m NATIONAL BANK You can g e t a lo t of help for your m oney. 7th & Walnut, Des Moines, Iowa 50304 Member FDIC (515) 245-3131 A n A ff ilia t e o f N o r t h w e s t B a n c o r p o r a t io n BANCO
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